Full text of Commercial and Financial Chronicle : June 17, 1954, Vol. 179, No. 5334

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U

NJVERSITY

OF MICHIGAN

CHEMICAL INDUSTRY FEATURED IN THIS ISSUE
J
JUN 18 1954

tut.•
.

«*bj

The Commercial w

umusm

ma

Chronicle

Financial

Reg. TJ. S Pat. Office

Volume

Number 5334

179

New York 7, N.

Y., Thursday, June 17, 1954

Price

40

Cents

a

Copy

EDITORIAL

What the Chemical

As We See It

i

Industry Is and Is Net

"Oh!

Liberty! Liberty! How many crimes are
committed in thy name!" There is a good deal
in the events of the day which
easily brings this
old copy-book maxim to the minds of those old
enough to have been obliged to copy it several
hundred times in the course of their early educa¬
tion. To be strictly in style it is
necessary, per¬
haps, to replace the word "liberty" with "free¬
dom" or "freedom-loving," but that is a mere

By WILLIAM H. WARD*

fabric

"security" is at times threatening good
sense
as
important as sound defense is — and
what is being done and said about it is
provoking
a
good deal of rather shallow comment about
"brain washing" and "thought control." We have
in the past had something to say about the
prob¬
—

which

text

clever

includes

subversive

a

have

no

great

knowledge

a

trip all the

essary

the

field

leads

us.

economics

to

At

and

which this

about

the

arose

an

in the early 'Thirties,

influential element in the

would
or

in

this

country had reached what

talk
as

33

I.

D. A.

for

comparable to

January, 1954.

especially

a

accomplished

chemical

the

a

on

of

Commerce

C. CONVENTION

page

or

in

because

their

prices

advanced, although the over-all
more

We have been witnessing

translating cheap and
plentiful money into security prices
under the auspices of the Republican
Party, which has married the New
Deal and made

an

honest girl out of

her.

Hence, cheap money now is
realistic, whereas before it was a de¬

vice

of the

devil, and other matters

which aroused anxiety have

quite

palatable

tration
and

Armand G. Erpf
<

not

there

under

an

unfriendly
is

to

greater

a

become

adminis¬

business

cooperation

between

industry and the govern¬
both seeking to entrench full employment and
improve the standard of living on a sounder

ment,

further

^Continued

in

32

♦From

on page

30

by Mr. Erpf delivered before the Boston Society
of Security Analysts, and the New
England Section of the National
Federation of Financial Analysts'
Societies, Boston, Mass., June 1.

by Mr. Ward before the Members' Council, Chamber
the Greater New Orleans Area, New Orleans, La.

of

a

paper

1954.

NEXT WEEK—In addition to the regular edition, the

ISSUE

"Chronicle" will issue next week

more

put out

the process of

interesting

newcomer

Continued

I

of the attractive indus¬

some

favbrable.

are

by

industry is not

which

investment climate has become

emphasizing what
William H. Ward
the chemical industry is not, and,
contradictory as it may seem, help
you at the same time to see the chemical industry as it is.
First,

investment,

attractive

have

industry
its responsibilities,

and

the relative attractiveness

stock

memorandum

less

valuable.

whole

a

*

tries mentioned therein have become

little about American

a

on

common

Since then,

industry
yourselves are

de-

page

less

and I decided that this could best be

popula¬
was

on

industries

nec¬

differences

gas,

rayon,

However, the reason I am here
today is to tell you about the chemi¬
cal industry and its progress, and I
am
going to do that. I also want to

♦An address

Continued

be

not

very

tion, which became enamoured of the idea that
we

These

,

chains, electric utilities, natural

asked to comment

mostly of degree, and I'm afraid any¬
thing I would say in that direction

the

and

of freedom often

in.

engaged

elements

business,

was

only to highspot the differ¬

and the industries you

con¬

depth of the depression

which descended upon us
there

loss

grocery

between the chemical

ences

shall have to say now

of

absurdities

of

who

was

-

Part I: Industry Groups

industry in general—but

from Delaware to Louisiana

way

has to do with
slavery to words, slogans, and cliches largely in
we

those

attractiveness

nonferrous metals, rails and
steels. Maintains share prices will establish stability at
higher levels reflecting increased price-earnings ratios.

business leaders like yourselves might well wonder why

interest abroad in scientific achieve¬
ments in this country. There is no reason to re¬
peat it here.
j?
What

of

by

shares,

electronics, rubber,

I

story is worth hearing

relative

on

air transport, chemicals and fertilizers, oil and

gas,

economic progress.

and great

.•

bank

a monopoly, or a static or independent in¬
dustry. Says freedom of incentive is indispensable to

chemical

comments

specific industries; divided into broad categories o|
consumer, intermediate, and heavy or cyclical. Analyzes'

more

The

;:

of

Stresses value of chemical research, and denies chemical

The word

intellectual nonconformist in

Market economist

industry is

day and time it is not only in the
"liberty" or "freedom" or "freedom-lov¬
ing" that many strange things are said and done.

T

ERPF*

Members New York Stock Exchange

tightly than any single industry. Reveals
chemical industry is not a despoiler of native raw mate¬
rials, but, because of development of synthetics and
substitute substances, contributes to our national wealth.

terminology.

ARMAND

Partner, Carl M. Loeb, Rhoades & Co.,

industry in U. S., Mr. Ward points out the industry is not
isolated or detached, but is woven into the industrial

of

lem of the

Company

In describing the growth and importance of the chemical

But in this

name

By

Vice-President, E. I. du Pont de Nemours &

detail. Even the Kremlin has upon more than one
occasion found it convenient to invoke the
power
of this latter

Outlook for Security Groups
—And Investing Policy

Special Supplement devoted to the proceedings of the

a

38th Annual Convention of the Investment Dealers' Association of Canada.

Stale and
U. S. Government,
State and

Municipal

MARKETS

ALL
♦

ON

U. S. Government

^

All Corporate & Foreign Bonds

HAnover 2-3700

—

York

New

bank & trust

company
BOND DEPARTMENT

MABON & CO.

and

*

THE NATIONAL CITY BANK

115

and Amer. Stock Exchs.

Broadway, N. Y. 6

BeU System

Teletype NY 1-2152

99

WALL

STREET

to
NEW YORK

5, N. Y.

Our Customers

To

Active

Raw

—

Refined

—

Liquid

Members N. Y. Stock Exchange
American Stock Exchange

Exports—Imports—Futures
50 BROADWAY, N.
1

DIgby 4-2727




Markets

Dealers,

Banks

BRIDGEPORT

Y.

PERTH AMBOY

Detroit
•

•

•

THE CHASE

Pittsburgh

Coral Gables

NATIONAL

BANK

Beverly Hills, Cal.

Geneva, Switzerland

OF THI CITY OF NEW YORK

Maintained

and

Brokers

CANADIAN

Canadian

Orders

On

Arkansas Western
Gas

Company

COMMON

All

Exchanges At Regular Rates

CANADIAN
,

Executed

CANADIAN
BONDS & STOCKS

SECURITIES

T.L.Watson&Co.

•

Miami Beach

Dept. Teletype: NY 1-708

Commission

sugar

Bond Department

Bldg.

Amsterdam, Holland

Net

122 Years of Service

other Exchanges

Hollywood, Fla.

Bond

*******

LAMBORN & CO., Inc.

Inc.

Trade

Exchange

N. Y. Cotton Exchange

Chicago

OF NEW YORK

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of

i

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Sixty Years of Brokerage Service
-pt Members N. Y.

Exchange,

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New Orleans Cotton

^

Preferred and Common Stocks

*

Exchange

Bonds

Exchange

Commodity

State and Revenue Bonds

Exchange

Stock
Cotton

American

Municipal, *

Stock

York

Chicago

Chemical

Municipal

Members

Complete Brokerage Service
4*

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H. Hentz & Co.

CALL *

ONE

New

Securities
telephone:

Established

★★★★★★

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DEPARTMENT

Teletype NY 1-2270

DIRECT WIRES TO

MONTREAL AND TORONTO

Goodbody
MEMBERS

NEW YORK

&

Co.

STOCK EXCHANGE

115 BROADWAY

CHICAGO

40 Exchange Place,

New York S.N.Y*

IRA HAUPT & CO.
Members New

and

Teletype NY 1-702-3

' WHltehaU 4-8161

111

Boston

York Stock

other Principal

Exchange
Exchanges

Broadway, N. Y. 6

WOrth 4-6000

I NORTH LA SALLE ST.

NEW YORK

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Grpokatioti

Teletype NY 1-2708

Telephone:

Enterprise

1820

2

The Commercial and Financial

•';>

(2654)

We position *

The Security

and trade in

;

the following Croups

I Like Best

week, a different group of experts
held from all sections of the country

A continuous forum in which, each
in the investment and advisory

Banks and Insurance
Industrials

The

Natural Gas

The Sparry
Corporation
in Automation)

Pipe Lines

in

found
will

be

familiar

as

"mass

production"
prod uction

was

New York Hanseatic

the
b i g

but
is

Stock

American

Exchange

Broadway, New York 5

120

WOrth 4-2300

BArclay 7-5660

Teletype NY 1-583 and NY 1-40
.BOSTON OFFICE:

Cleveland

Chicago,

Street

Philadelphia,

Boston,

to

Wires

Direct

State

84

and

Houston.

to

machines.
Both these

changed

steps

mil¬

for

lions, replaced
hand-labor,
reduced

costs,
improved liv¬

C.

James

Luitweiier

standards
and
brought
great
wealth
to
captains of industry and stock¬
holders
of
corporations
which
adopted them.
ing

Specialists in

Rights & Scrip
Since 1917

ffiTtoNNELL&fa
Members

•

New York

120

Stock Exchange

American

Stock

Exchange

BROADWAY, NEW YORK 5
REctor

TEI.

2-7815

line

who

next

the

undertakes

old of automation.
/

Engineers have begun to ask
themselves, why cannot a "mech?

American Furniture

anical

Bassett Furniture Industries

chanic

man"

Commonwealth Natural Gas

has

new

me¬

The
would not

doing?

electronic invention: the

This

tube.

and

tube,

vac¬

more

the

transistor, have been
adapted to do almost everything
that

3TRADER,TAYLOR & CO., Inc.

been

this

do

—

human

the

changeover, however,
so simple but for a marvelous

lately

Life Insurance Co. of Va.

robot

a

be

uum

Dan River Mills

—

that

work

same

man's

five

With electric

senses

do the "muscle

do.

can

motive power to

or

work," these tubes

1953

of

end

Preston

started

hish
low of $2.12. By the'

of $7.50 and a

able

of

worth

with

this

Members

stock

war

after

were

of

ments

New

Mobile, Ala.

wide circle of hundreds of

a

miles and

controls.

hands

touching

A plane can

Canadian

out

Call

landed without seeing the ground,

these

radar

When

is

in

the

Shares in

War IX, is far greater than
those

war

the

the

this.

confirm

to

seem

last

writer believes automation is like¬

to have the same rapid de¬
velopment as mass production had.
Sperry is an outstanding leader in
this field.

Corporation

Sperry
stock

in

listed

is

on

CREDIT, INC.

-

(Prospectus Available)

PANTEX MANUFACTURING
SANDY HILL IRON & BRASS
REEVES SOUNDCRAFT

the

j

The

automation.

of

future

John R. Boland & Co.,
30 Broad St., New

Inc.

York 4

'

Teletype NY 1-4481

B0 9-3242

common

York

New

Stock Exchange.

NEW i:\6L\NU

PAUL B. ZEISLER, JR.

In

(1945 V (r-Ttm ui, Rose & Co., N 'w York City
their gross revenues were $289 ■ Member, New York Stock Exchange
million; last year, $464 million.
S. Morgan Smith Go.
Today the Sperry Corporation
serves, with its precision instru¬
In a period of uncertainty such
ments
and
controls,
the
three as that which currently prevails
of the

year

"

now

ly

that it is hard to say. But
r y's
financial statements

S p e r

taxes,

do so would seem to depend upon

secrecy

would

GENERAL

elim¬
appear over-valued
at $60, if such earnings, or a large
part thereof, can be maintained
in the future. Sperry's ability to

during
that

cloaked

Bankers

Investment

Trading Marketa

that earned

company

profits
inated, do not

much

is

done

been

has

So

years.

a

excess

end of World

what-not since the

&

Broadway,N.Y.6 COrtlandt7-5680

renegotiation which
share of

to

$7.57 last year, after paying $4.33

and

missiles

111

should not be in that

to which it was put

guided

in

radar,

Office Tokyo—70 Branches

Brokers

earnings. .--.Sperry certainly
predicament.

such

Perhaps the progress
instrumentation,
in

war.

aircraft

in

Home

Ltd.

1897

would take away a large

Sperry
people had aleady mastered the
principle of radar and were out¬
standing in making hundreds of
contributions

Established

being likely

builders

aircraft

lead

to

hears

one

publications

Japanese securities

Securities Co.,

less. This

even

write

or

current

Yamaichi

Govern¬

dollar.

excessive earnings of

much about

into general

came

our
on

3 Vz e

only

year

because

important

the

in World War II, the

use

last

work netted

ment

a

instruments.:

new

for

stockholders

for

sales

each

of

offices

in Japan

Govern¬

of

$17.49,

represented

also be

branch

our

Opportunities

and last year to
last year
paying taxes to our

income

Net

to

Investment

earned!

lar\d it where it started,
human

vrithout

thie

wires

earnings
from 23c
and $4.00

which $4.33
fields. For instance—
was excess profits taxes. In short,
As
a
result of a
Sperry. in¬ these governments, as "partners in
vention, one can take an airplane the business," got about two and
into the air, set the controls, fly one-half times what stockholders
it in

NY 1-1557

Orleans, La. - Birmingham, Ala.

Direct

was

earnings'

the

and

own

St., New York 6. N. Y.

HAnover 2-0700

years,

Such

$7.57:

Exchange

Exchange

Rector

19

York

these 20
received

In

stockholders have
$33.30 in dividends. Net
per share have mounted
in 1933, to between $3.00

years

in the

a

Stock

American Stock

New

Members

has lately sold

share.

per

for

same

and

$37.75

$60

over

radio .beam, as
one
might ski down a hillside,
industrial
without human hands intervening.
processes
and
simplified
them.
Two examples of automation.
Formerly a machinist used one or
Today the cost of a modern war
more machine tools and made a
-finished
article
all by himself. plane is only a fraction of the cost
of the complicated instruments it
Now
he
uses
a
single machine
which does only a single opera¬ carries, all applications of auto¬
mation.
The Sperry Corporation
tion and passes the product along
has contributed a large part
of
to the next man on the assembly
operation, and so on.
This has brought us to the thresh¬

Camp Manufacturing

each and sold that year

mantle

his

Bassett

something by sliding down

Mass production did
more:
It
subdivided

simplified

Trading Interest In

Mr.

Sperry 40 years ago as a
research engineer, was later
in
full charge of engineering for a
period of 16 years and became
President of i;he Sperry Gyro¬
scope Division in 1945. This ableengineering staff added many new
inventions, some employing the
gyroscopic principle, and in other

workers

life

growth as do Sperry's. The con¬
solidated Sperry Corporation was
formed only 20 years ago. in 1933
its shares had a net worth of $3.19

Mr.

when

switched

Steiner, Rouse &Co.
of

over

upon

including

Bassett.' Mr.

handier aft

Member

force of

a

shoulders

the

on

lieutenants,

revolu¬

tion"

1920

Established,
Associate

trial

in

youthful.
Men
the
plant whom

17,000.
Fortunately,
Sperry's retirement,

in the "indus¬

Corporation

work

fell

step

Zeisltr, Jr., Gartman, Rose &
Co., New York City. (Page 2)

Sperry
employed.
It has
matured
rapidly from a hand¬

Mass

today.

still

is

Bought—-Sold—Quoted

B.

a

ful of workers to

sec¬

ond

as

Divi¬

the

Mr.

not

word

a

dictionaries,

most

soon

The

still

is

AUTOMATION

Gyro¬

as

sion

("Out in Front"

Sperry

Division.
Sperry
Gyrocope

scope

Hayden, Stone & Co., New York City

with

Louisiana Securities

C.

J.

—

Smith Company—Paul

S. Morgan

poration,

LUITWEILER

C.

J.

Corporation

Sperry

Hayden, Stone &
Co., New York City. (Page 2)

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

•are

Alabama &

Luitweiier,

not intended to be, nor

are

Participants and

Their Selections

participate and give their reasons for favoring a particular security.
(The articles contained in this forum

Week's

This

Forum

Chronicle*'xixu**uay, June 17, 1954

war

LIME 10.

.

Lynchburg, Va.

and

TWX LY 77

LD 39

transistors

chines
tions.

that

can

do

activate

repetitive

ma¬

opera¬

This is AUTOMATION.

*

.

•

Any such device
BOUGHT

SOLD

—

duce human

that

will

re¬

labor, save materials
production means a

speed
lowering of costs of production
and prices. In a highly competi¬
tive
peacetime
economy,
it is
bound

QUOTED

Li Ai

cial

.

to

have

STOCK

and

wide

profoundly

ness

COMMON

acceptance

life.

affect

busi¬

our

Sperry

people

Midwest
Detroit

Exchange

vacuum

Exchange

tool to

Stock

Stock

1051 Penobscdt Building
DETROIT 26, MICH.
Branch

pioneers

were

Members:

Office—Bay

City,

Mich.

the

have

beep

gave them a new
The original company,

Sperry

Based

gyroscope

schoolboy

upon

simple

a

top, 'which

toy,

every

knows,

Mr.
Sperry
conceived the idea of a gyroscopic
compass to replace the magnetic
compass
aboard ships. This de¬
veloped into a complicated steer¬
ing device which can now take a
ship across the ocean without a
human

Write for Circular

the

Gyroscope Co., was
founded in 1910 by Elmer Sperry,
an
inventive genius of the first
the

UNILEVER

before

even

tube

use.

order.

helmsman.

Then

he

brought forth during World War I
the

800-million

candle

power

search light which lighted up the
battle front in France as a guard

against

Members

New

York

Stock

Exchange

25 Broad St., New York 4, N. Y.

last year

Tele. NY 1-3222

night
adapted

air

raids.

Later

it




constitutes

company

in

ulti¬

mately it became the Sperry Cor¬

the

American

the

private

to

stability

million,

$123

or

sufficient to

been

have

1948 for

tions

merit

ular

last

add

tively

feature

new

to

Sperry's

mation.

it

For

hydraulic
trucking

growing

has

introduced

ipower steering for the
industry and the fast
materials-handling
in¬

dustry.
machinery

new

through

the

Holland Division of- the com¬

is

a

postwar addition, made
they felt a great
in their government
upon them. Expansion,

is

the

Morgan

of York,
Pa., one of the
pany

ment.

is

a

While
new

the

one*

to

company's
the

stock

common

ness

had

its

were

sold

for

the

company), its busi¬
inception in 1877,

curred in the last several years.

Statistics

are

dull

except when

they tell such an impressive story

with

thev

ATOMIC ENERGY COMMISSION,
•

Company

\

four

years.

in

past

paid

same

$11.40

earned

Dividends

period $2.25.
Memorandum

on

request

Dayton Haigney & Co.
Incorporated

75

STREET

FEDERAL

BOSTON

10,

MASS.

Over-the-Counter

Quotation Services
for 40 Years

Stephen Morgan Smith, the
founder, produced his first tur¬

in the development of the power¬
ful
turbines
used
in
modern

seems

contract

when

work

work

a

name

Smith Company has been

of gov¬
to have oc¬

under

investment

community (its tenure of public
ownership dating back only to
mid-1952, when 100,000 shares of

bine.

contraction,

cium

countrys

contraction

than

metallic cal--

magnesium and

rity

largest manufacturers of hydraulic
turoines and water handling equip¬

at the time when

was

wholly owned

a

subsidiary, manufactures high pu¬

the

Smith Com¬

account cf the

Farm

ex¬

of

S.

Zeisler

business. It too is in a sense auto¬

consider¬

above

important third.

Hydraulics and allied machinery
produced
by
their
subsidiary,
Vickers, Inc., have added a rela¬

to

ample

machinery and equip¬
farm
machinery now

another

program.

Nelco Metals Inc.,

ation. An out¬

volume, but hydraulics and other
and

com-

-ATOMIC

the

in

1 d

partic¬

standing

constitute two-thirds of their total

ment

w 0 u

appear

year's dividend of $3.00 per share.
Instruments and
controls
still

industrial

and

condi¬

nt-ss

more

cover

ENERGY
•

growth irre¬
spective of
general busi-

business

metallurgical

engaged

pany

com¬

economy,

panies which have exhib;ted both

and private
enterprise.
Earnings
last
year
from private business alone should

rather

1929 to outside interests and

Energy

the government

theatres.

Sperry sold his

Depart¬ in

it also supplied commer¬

totalling

pany

Mr.

This

products

ernment

Phone: HA 2-976S

Atomic

larger part of their business. But

for "flood-lighting
landing fields, for airplane beacons
and high-power light for motion
picture
projection in lar^e

„was

Defense

the

Commission.

both

The

the

of

and

than all their business in

"out in front" in automation. They

i

branches
ment

and

A chemical and

'

v

Since

then,

S.

Morgan
a

leader

National Quotation Bureau
Incorporated
Established

hydroelectric generating stations.
Although the principal business

Continued

46 Front Street
CHICAGO

on

page

22

1913

New York
SAN

4, N.Y.

FRANCISCO

Volume 179

Commercial and Financial ChronicTe

Number 5334 .;. The

ti i

Television and Radio
far

V

/ —Armand

G.

Television and

approximately

>

Looks for

<

seven

million, aggregating

reduction in

some

Erpf___

good

common

morrow."

"if

sense,

receiver, and gives data
belief radios

are

now

forceful selling.
and says
It

has

been

recent

future
The

Strong—Joseph B. Elliott--

society

Notes

"drug

to¬

business

the

of' crystal-gazers,

will

pick

7

urges more

—b.

No

Obsolete Securities Dept.

10

_i_

Centers—Roger W, Babson

13

,

'

'J.

j

<'

,

"

American Marietta

'

.—14

Serious Economic Recession, in Prospect—Ben H.

''*V
- V
The Downside Slide Has.Been Stopped!

'• V ' "r y\:->

•

.

■i

,

_______

Parker McComas

NEW YORK

Telephone: WHitehall 4-6551

11

•>,_ I

r

^-Hdnl Walter Williams

membership

.'7;*;

''Sv-' 'i--V'

•

Federal Electric Products

16

Wooten

7;

■

Central Public Utility

14

-

•

:

:

Foremost Dairies

'•

be¬

fore

and

the

You, no doubt,
question—and I

The Guaranteed Annual Wage vs.

distributors, of electrical, products?-.

ever

and new, have*
been working

for

*

18

•_

to you as.

-mean

asking

are

market

WALL STREET,

99

fi^ey ;Ffccfors in Business Outlook-^Prsink A. Pearson _*_

up.

than

swers

Neilson-—

A.

7 Transformations in the Tobacco.Industry

•

the

in

—-OBSOLETES!

,

9

Jpn—A. M. Strong

well as
viewpoints — a r e:
out of focus;-things

What does this

members,* old

7

Financing American Exports Under Increasing Competition

guideposis—as

completely

it

I.

we're

*

.

Responsibilities of Banking Leadership Today

"Shopping:

personal

my

economy.

No matter what the season,

n

possible in 35 cities.

now

Commands Financial Respectability

Chisholm

H.

'—Stanley

TV

one

Then, unless most polls and other,

pastime

has

than

—Jk

i

SUMMERTIME 1

4

Larson_____^_

Accomplishments' of New York State .Bankers Association

in introducing color television, >*"l

more

on

use

prosperous

a

more

use

the market." and

on

progress

forecast

to

nation's

The

AND COMPANY

in the good old

3

y' —Homer J. Livingston

recent"receiver production. Decries«;

on

a

popular

a

the

seems,

taken

attain

to

are

TV color reception is

months

of

we

perspective and

proper

Indicates families will-soon

—William

urges

mmmmmmmmmmmmm

Cover-

-

Still Going

Radio

Thfc Paper Industry

were

than $3 billion.
merchandisers

more

1954, and

place "bulls" and "bears" in

to

.

•

in

outlook for general business,

current

on

Mr. Elliott reveals that sales of television sets in 1953

»LicHTinsTcm

Page

The Challenge of Atomic Energy—Clarence E.

After commenting

3

Security Groups—And Investing Policy

Vice-President

Consumer Products, Radio Corporation of America - r

-

(2655):

(i u

i

Articles and News
Outlook

By J. B. ELLIOTT*
Executive

i

11

index

Still Giing Great

....

u

believe

the

will

—Kenneth

that,
an¬

Steel

Employment Stabilization

Miller

R.

Harrisburg Steel

/

:27

_______

Industry Faces New Challenge—Martin R. Gainsbrugh- 28

sense:

to

have

offer

Television

overtime.
Their

I

approach the
-■first*? from one angLe

tions,,, it

^ap¬

television

to

me,

^television

to

Bought

boil

down

this:

money

your

Jceivers. tSales

and take your

side

one

Joseph

On

choice.

„of

B.

,

instruments

Elliott

billion
if

,

the, fence are the "bears" who
predict—pessimistically and
loudly—-that we're halfway down
the

hill

lined

to

HacJesL in

model

'54

"bulls"

spokenly—that our
for better things.
Only

side

economy

the

that

as

it

is in

ters

every

time

can

business

than

In

being from the Ameri¬

day-to-day activities, I
have the opportunity to conduct
what might be called—for lack of
a better name—"Elliott's Continu¬

ing Poll on. How's Business With
In recent weeks, i can re¬
port, most answers to - myoneman survey- are
that things are

You."

up.

My findings, I might add, are con-j
in

If

very

to

-

the

William

by i sales figures and othkr statis¬
tics that the downward trend of
than casual

more

are

that business will
on

its

two

There

indications

continue along

present plateau for the next

or

three months through the

slow

normally

season.

summer

by Mr. Elliott before the
National
Association of Electrical Dis¬
tributors, Atlantic City, N. J., June 10,
♦An

address

Paying

Interest,

according

☆

to

Nadler Study.

Broad Street,

Teletype

NY 1-2262

H.

Does

Peterson

Advocate

Not

Repeal

11
16th

of

(Letter to Editor)--

HYCON*

26

_

STANDARD

31

URANIUM

We

It

See

(Editorial)

Business

realization

famine

feast

an'

a

is for

prospect
fare and

what's

of

of

a

busi-.

ahead

.From Washington Ahead: of the

wild delight over the
possible prospects for record sales
Instead, today's climate calls for

and action.

It calls for work—and hard

work

—with the belief that the reward'

Today's business*,
judicious cour¬

large.

for

It calls for

action.

plan of
recognized

good

a

calls

It

for

brand merchandise of outstanding
values.

34

—

It calls for

a

Continued

desire
on

on

page

the

35

250

—

News About Banks and Bankers

Wilfred

Observations—A.
Our Reporter on

—-—

—

Mky_

40

26

1

Federal Uranium

Securities___

Utility

Railroad Securities

V

_•

Salesman's

The Market
The

.

.

Seneca

.w__

2

________________

Victoreen

Instrument

Vitro Corp. of

48

*No article this week.

Members New York Stock Exchange

Boston
•




•

Chicago

•

Nashville

•

TELETYPE N. Y. 1-5
Glens Falls

-

Schenectady

•

Worcester

Py 8

FINANCIAL CHRONICLE

1

* Prospectus

America

available

request

Eng-

■

Park

'

'

-I-.

B.

"

■

Place,

REctor

New

2-9570

HERBERT D. SEIBERT,
WILLIAM

;V 7

•.

DANA COMPANY,

DANA

President

Other

Chicago

an^

Offices:

3,

111.

i:

.

(Telephone f-

Sa^e

i
a 3

the

post

St.,

2-0S13";

office

at

in

New

Rates

States,

United

^ .t, ''aj DntoTldS.So
f

Domin

°lher c

1954

(general news and adevery Monday (complete statistical issue —. mark.t quotation
records, corporation news, bank clearings,
state and city news, e ?.).
issue)

at

Subscription
L—^criptions

Every Thursday

verfcising

1942,

Y.

Editor 4 PoKiaber

17,

25,

ary

York, N. Y., under the Act of March 8, 1879.

9576

SEIBERT,

Thursday, June

; ;

Publishers

York 7, N.
t'

Company

Reentered as second-class matter Febru-

Reg. U. S. Patent Office

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300,

Manchester, N. H.

C.,

Co.

& Smith.

land, c/o Edwards

i AI

COMMERCIAL and

London, E.

Gardens,

Drapers'

Co.

5

Washington and You

l

Oil

12

—______

The State of Trade and Industry.

Corp.*

Rohr Aircraft

16

—

Best

Security I Like

Lisbon Uranium

:

45 *

r

Corner.—

and You—By Wallace Streete

.

7

42

Prospective Security Offerings

Securities

35

_

—

in Registration.

Securities Now

25

'

Corp.

37

WILLIAM

•

*

5

___

Governments

47

lCn_•OlUulYO
C » RED

Spencer Trask & Co.

'

S*

Copyright .954 by William B. Dan.

CTDPIfC

DDFFrDDm

specialized in

Albany

Exchang-e PI., N. Y.

22

Our Reporter's Report.

-r.

'

more

Teletype NY 1-1825 & NY 1-1826

8

N STA--Notes

The

BROAD

in

securities

MACKIE, Inc. I

&

on

25

Request.

markets

over-the-counter

HA 2-0270

7

^

on

trading

Singer, BeaNi

39

Public

volume.

calls

Literature

maintain

than

News—Carlisle Bargeron____ 10

Indications of Current Business Activity™—
Mutual Funds

:

A busi¬

in

level-headed thinking

We

is

realist, during this period of*'
readjustment, neither throws up-

climate

8

—

_____

pessimist.
Tne~,
more- balanced
one.,

Recommendations-

Einzig—"Are Britain and U. S. Doomed to Ever .Rising Public
7
Spending?"
::
30

for. the

ness

be

*

8

___

AMERICAN

SULPHUR

*

Coming Events in Investment Field

*

dulges

MACHINE*
PAN

48

_____

!_______

-_

Dealer-Broker Investment

optimist—nor(

healthier

a

our

calls

It

that

the

the

& B AMERICAN

__j_ 29

Bookshelf

Man's

Canadian Securities

H

..Cover

Bank and Insurance Stocks

economic climate, above

s

7

•__

Published Twice Weekly

have

'

LISBON URANIUM

bus.ness field.

tne

in

activities.

1954.

For many years we

New York 5

Dlgby 4-1680

.11

Regular Features
As

and sound

prosperous

a

not

age.

■

Hulbert S. Aldrich Heads New York State Bankers Association

sense,
we
have'
big step toward

all, calls for realism in

will

Manager

Trading Dept.

33

Paine, Webber, Jackson & Curtis Observe 75th .Anniversary.>■ 29

pect of decreased volume nor in¬

purpose.
Across the nation,
is a feeling—as evidenced

Unlisted

.

his hands in horror over the pros¬

business has been reversed.

Bonds

Dollar

Amendment

fu¬

b,y other opinion-seek¬

there

26

Solomon Fabricant Reports on Rise in Family Income

big

ing organizations undoubtedly far
better equipped and staffed for
the

Foreign

Rowland Collins-Marcus

merchan-^,

as

we,

common
the first

Today
ness

☆

ROBERT W. PAYNE,

am

attaining

either leveling off or picking

Manufacturing Chemists' Association.:

Members New York Stock Exchange

"6

Telephone
More

'

my

curred

a

..

perspective.

taken

r - -

T

r

per¬

disers, do this with cold logic and;

good,

.L

Burnham and Company

.4,
•

15

"bulls" and the "bears" in proper

has disappeared for

ath alvay

v

Plastic Industry Adopts Statement of Principles

short, I think we should seek,
place
the
attitudes
of
the.

to

aspect of our econ¬

scene.

Marketing Problems in Defense- Market

New Officers of

a

important key

L__Cover

1

confident

am

for

*.

close

many

become

can

tomorrow

In

in

are

Ward

H.

convinced, is a sound
analysis of the facts we must face.

experiences, the "sell¬

the

television, I

we

ture, I

has tapered off.
Most as¬
suredly, and you know this from
ers' market"

many,

so

^

omy

your* own

surprise

One

tainly, the level of activity in vir¬
tually

-

during 1954

will be

we

.word.

Cer¬

ever was.

three

good'year,
but—there is ah if, two little let¬

would hold today that business is

booming

than

the Chemical Industry

Industry Is and Is Not

Research—Norman E.

With color television grow¬

white

lated from the rest of the vyprld
as

Chemical

ing in stature and with continued
heavy
demand - for
black-and-

The
of

to

as

completely iso¬

person

a

—William

these

on

Chemical

the

£hemical Facts and Factdrs^-Ira Ut CobleighL___ ___.r_r.__

,

Frankly, I doubt.

reach that mark

we

sons..

ifence proclaim—and. just as out¬

t

the

year,

more

dollars.

What

manufactured

volume

.was

—but I think

stream¬

a

handcart.

the other

on

Last

merchandising industry.
jsold—approximately 7,000,(LO rp-

pay

you

sales.,-

industry

Articles About

question,
that of i

—

—and the

pears

Sold

—

Sales

Let's.,

predic¬

make

7

Canada,

per

year.

Note-—On
rate

account

of the

of exchange,

eign subsc

-

fluctuate ns In

remittances ic tor-

iMons and adve.

WHiteh 41

v.

be made iu wew York funui.

•sementt

YORK 6

3-3960

Teletype NY 1-4040 & 4041

..

Bank and Quotation Record — Monthly,
$33>.u0 per year. (Foreign postage extra.)
tjie

INCORPORATED

39 BROADWAY, NEW

^

Other Publication

-

WM V. FRANKEL & CO,

S.

U

$51.00

*55 00

U.

\vS,

.

Direct

PLEDGER

Wire

to

^ COMPANY !NCM

LOS ANGELES

.

4

The Commercial and Financial Chronicle

(2656)

...

Thursday, June 17, 1954
J

we

enterprises, and the new

at

chemical

The
ways

a

toughie

principally

about,

write

to

because

never

you

What will
have? Organics or in¬
organics,
ih-

where to begin!

know

you

dustrial
co

or

n-s-umeir,

at

The

the

By

3

as

source

for

mins

or

vi-

Is?
We
probably
n

y

won't wind up

with

a

nice

tight chemical

Ira

U.

package to¬
day, but we'll
try to cover a
few
points
that may have

particularly the

Cobleigh

in the fields of international relations,
as related to it.
Discusses

progress

of economics and of

technology,
Eisenhower proposal for peaceful

point to companies
gross sales at $380,393,000, up 60%
that spend 1% to 3% of gross on
since 1949.
research; and to pat them on the
Recent
developments in ACY
back for sleekly architected and
include a new anti-biotic, Achro¬
graciously
landscaped
new
re¬
tetrachloride,
introduced
search laboratories, replete with mycin
last November; a $52 million plant
squadrons
of
Phi
Bates
from
(accelerated amortization) at New
M.I.T.; or Caltech, retorting their
Orleans to produce nitrogen com¬
way through the test tubes.
May I suggest, however, that pounds from natural gas (plant
mere
millions cannot assure the 80% complete), a $15 million ti¬

tribute

chemical

that the plant is

that

it will
cite

could

plant is no assur¬

be

a

plant

efficient

good

earner.

investments

or

I

of

it

were

for

not

the

new

additional

the

number of shares in

prospect from

technical

breakthrough" in

predicts by 1960

use

financing.

Mathieson Chemical is

an

ideal

Explains problems in the
of the "breeder, reactor" and

reactors will be

producing economically

petitive electric

necessary, the value placed on
scientific and technical know-how

in the field of international politics-in interesting to
recall, es-

pecially in the light of our present situation in which the United
States is

situation is brought about—not

by
by

able

all fronts

sons

and

difficulties

substantial progress
of

—

on

but

com¬

power.

We are indeed fortunate that this

failure

and
con¬

costs from its application.

power

tanium plant under way at Sa¬
delivery of geniuses like SteinDuring the past year the <demetz, Dr. Upjohn or Dr. Wachs- vannah, Ga. and purchase, for $12 velopments in atomic energy have
million, of the Antibiotic Division
man. If somebody paid you a mil¬
come at such a
pace on so many
of Heyden Chemical in December
lion, could you ever play like
fronts it
is
natural
that
there
of last year. ACY is a top drawer
Heifitz? The same thing goes for
should be some confusion and concompany and would be selling at
plant investment." Merely because
troversy as to our present position,
a
lower yield
basis than 4.4%
you plank down $5 million for a
new

energy

which will

on program

substantially to civilization. Reviews economics of
developments in nuclear energy, and forecasts reduced

recent

'

of atomic

uses

concludes U. S. is ready to embark

.

ance

E. LARSON*

Mr. Larson presents picture of present status of atomic
energy,

facts

this elegant company, fifth in
size among chemicals, with 1953
on

•

or-fer¬
tilizers,
vita¬

drugs

CLARENCE

Director, Oak Ridge National Laboratory

interesting and you
hereby referred to prospectus
June

> .t n

Challenge of Atomic Energy

conversion
common selling
The

par.

is most

dated

of them have acquired.

some

al¬ favorably to

is

industry

are

American

with

$50

at 45

characteristics of certain chemical

look

Cyanamid

common

COBLEIGII

Enterprise Economist

Some lab notes about the

offered to

holders

of

■

{':•

'I «'

;

con¬

vertible preferred being

Chemical Facts and Factors
By IRA U.

$58 million of 3%%

see

offering to share fission-

materials

information
but

as

and

not
a

technological

for

selfish

rea-

of encourag-

means

atomic

energy.
ing the restoration of world peace.
three years totaling over example of a company growing
Today, I should like to sumThe
implications of President
million (spread among sev¬ by merger. For 1953, MTH, giving
manze
our
present position, re- Eisenhower's proposal have been
eral companies) which have been, effect to its'assimilation of
First, about growth. The chem¬
fernng particularly to the prog- discussed by Commissioner
in Broadway parlance, "turkeys." Squibbs, had gross sales of $243
ical industry has led in this mys¬
ress in the fields of international
Strauss in a speech in Los AnThis year by virtue of
All this chit chat has been in¬ million.
tic and elusive quality, so fran¬
relations, of economics, and of geles recently.
He pointed out
merger with Olin Industries, com¬
troduced to set the major motif
tically sought by individual in¬
gross
should
reach $480 technology as related to atomic very explicitly that the proposal
for this piece which is that man¬ bined
vestors, and collectively in trusts.
would not involve
million and make the new unit energy.
suddenly placis a major factor in
There must be at least a dozen agement
fourth in chemicals. This is pre¬
Any discussion of the present inS tnist where yesterday trust
mutual funds today with the word chemicals. Good management can
select imaginative researchers, suming it is appropriate to list status of atomic energy would not c°uld not be reposed.
It would
"growth" woven into their cor¬
make wise decisions on the char¬ arms, explosives, lumber, flooring be complete without reference to 99^ s®^ve *n a day
or in a year—
porate names, and all of these
acter and location of new plants, and power tools as chemical sales. President Eisenhower's speech bedesperate struggle for; daily
own
a
boat
load of
chemical
and particularly can mastermind Together, these properties should fore the United Nations Assembly bread, nor would it—on any prestocks. But from that it does not
earn
well and Mathieson at 45 where he
proposed the creation wisely measurable timetable—turn
follow
that all chemicals
grow just which of the 6,900 chemicals
of an International Atomic Energydeserts into lush meadows. Comnow
being produced (or a new paying $2 still looks attractive.
equally, or that they can be picked
Allied Chemical still moves ma¬ Agency, to which, and I quote, missioner Strauss pointed out that
at random merely because the in¬ one) it can most profitably manu¬
facture and merchandise.
jestically along, third behind du "The governments principally in- *Le operation
of the proposed
dustry, to which they claim feal¬
Pont and Union Carbide.
It just volved, to the extent permitted International
Atomic E'nergy
Well, how do you go about se¬
ty, has been growing for 20 years
sold out its 250,000 share holding by
elementary prudence, would Agency will accelerate the appliat around 10% a year.
For 1953 lecting these good managements?
in Air Reduction for cash, which begin now and continue to make catlon of peaceful uses of the atom
total chemical sales were a ma¬ Do you just buy stock in the big
overlooked in the general
of chemical companies.

been

acclaim

the past

$50

everywhere. It will divert fissiona^e material from atomic bomb
srsenals to uses which will benefit
ways given an "A" for chemical
plants in 1953 will broaden
judgment if your share list in¬ went on to say, "The more impor- mankind. It will foster dissemibase for even larger gross this
There
is no absolute answer.
cludes ACD.
tant responsibility of this Atomic nation- of information and stimuyear.
But this bulge in gross in¬ Mere bigness does not assure suc¬
Abbott Laboratories has, through E'nergy Agency would be to de- IaIe the acquisition of new funcome and in plants, constitutes no
cess
or
forward
motion.
Those
vise methods whereby this fission- damental
data and theory. It
warranty of profitability, which units that have grown most in the the years, consistently offered a
companies?
Or those with the
growth rates? Or the most
the diversified production?

jestic $20 billion—largest in his¬
tory;
and
$1.7
billion in new

has

showed

wide

swings

among

the different companies.
The

most

impressive per share

gains (1953 over 1952) were Com¬
mercial Solvents up to

$1.01 from

,52c, Mathieson to $3.30 from $2.53,
Smith Douglas to $2.26 frdm $1.78.
the fat cats, those com¬
panies which gross above $300
million,
the
biggest per share

Among

swing was in Monsanto up to $4.90
from $4.29. There were also some
back-spinners — General Aniline
which slipped to $3.71 from $5.13,
and Newport Industries down to
95c from
$1.44.
But enough of
these stodgy statistics. I only drag¬
ged 'em in to show that even in
a good year results can be as di¬
vergent as Liberace and Oscar

fastest

should

its

make

than

sweeter

sheet

balance
You

ever.

al¬

are

contributions

from

their

stock-

piles of normal uranium and fis-

sionable materials." The President

broad and highly respected line
have spent themselves,
of ethical drugs plus smart adver¬
marketing and servicing too
and
selling.
At current
diverse a product list may create tising
it does not appear over
lethal sales costs.
In truth, the prices,
quest for slide rule appraisals of appraised with a $1.80 dividend
1953 earnings were
chemical management brass is an plus extras.
up
ten
cents
from
the
elusive one, which many people $2.35,
solve by obtaining their chemical earlier year. Its new non-caloric
selections in the portfolio of a sweetener Sucaryl is going well.
diversified Investment"trust, or by Dividends have been paid since
deploying their dough into a fund 1929 and you have a choice of
the common or the $4 convertible
specializing in chemicals.
(The

past may

and

able

to

material

serve

kind."

would

allocated

be

peaceful pursuits of

All of you are

man-

familiar with

the favorable reaction

throughout

the civilizdd world.
"

About

...

the

missioner

same

Murray,

controversial

in

but

Com-

time,
a

somewhat

extremely

thought-provoking speech, pointed
out

that

ment

in

The

USSR

accomplish-

demonstrating

thermo-

a

nuclear bomb
is less dangerous
(into 1.7 shares com¬ to the free world than would
Abbott is a durable per¬ have been the case if the Soviet

largest of the specialized trusts is

preferred

Chemical

mon).

Fund,

Inc., with assets
today of above $60 million.)

It
A Few

Samples

preferring to do their
choosing, there's a sort of

own

may

talk

For those

'■

former.

''

•

had

stretching

be

piece
outfit

chemicals

about
derives

bit

a

Carbon

United

about

more

to

in

but

than half

a

announced

that

it

had

been

successfully operating a practical
mdustrial power plant and
was

this that
day offering foreign nations
its

W*L provide

an

opportunity

for

nations that are atomic have-nots
to acquire atomic facilities best
suited to their individual needs,
He emphasized that, and I quote,
". . . perhaps most important of
all, the successful operation of the
Atomic
Energy
Agency will contribute mightily

international

to focusing world attention and
understanding on the potential of
atomic

energy

to enrich the lives

0f

ad

of

today's doubts and

us

Df

ug

and ^us

d jSpei

some

fears

that

only use would be to destroy
» As a first concrete step, Mr.

strauss
national

will

be

mentioned

that

conference

arranged

of

later

inter-

an

scientists

this

year

nuclear power technology in ex- 1° consider the benign and peaceblack, a chemi¬
Levant.
examining. When a company of¬ cal
product
achieved
by
half change for uranium and other f"l uses of atomic energy. From
fers a low yield on its common burning riatural gas or oil.
The favorable economic and political this beginning we can fervently
and a high price/yield ratio, you stuff looks like what you'd scrape
The Research Factor
agreements."
Lope that the seeds will be sown
generally find the management off your window in Pittsburgh
Then, of course, there's been a
which will reach fruition in an
(and the company) is excellent. but its- uses are wide indeed, and
lot of hoopla in chemicals about
To be specific right now, average
widening. It adds color and sub¬
C°mparis^ Wi^ Chemi^L
atomic energy program for manSituation After World War I
research. It has been the fashion
yield on representative list of stance to paints and inks, goes
kind that is, using the words of
Commissioner Murray s obser'
■
chemical equities would be some¬ into insulations, and all sorts of
our President, "not
dedicated to
where around
4.1%
and
■
price/ plastics. 1.6 billion pounds of the vation reminds us of a somewhat
/
"is death but consecrated to his
earnings around 15
Against this stuff were turned out last year.
analagous situation 30 years ago '
average, glance at the little table United Carbon has a cozy capi¬
German
1 e*
taken from the June 11 market: talization, only $1 million in debt following World War I.
^ne °* *Le most practical sugand 795,770 common shares now chemical research had developed
Price
1,000,000 G. O. Bonds
Chemical
Yield (on
Times
selling at NYSE at 65, paying a specific drug for the cure of Sestions as to how to implement
Stock
Price
1953 Div.)
1953 Net
$2.50. This would appear to be at sleeping sickness, which at that *Le Eisenhower plan has been
Du Pont
122
3.2%
25
750,000 G. O. Bonds
only four times current per share
Dow
39
2.6%
24
time was so rampant in Africa Pr0P°se<I by your President, Mr.
Union Carbide
80
3.1%
23
earnings and the market quotation
Hooker Elec.__
68
3.0%
24
the
administration
of
col- Foster.
This plan proposes an
is a most conservative appraisal that

rule of thumb that may be worth

sales from carbon

.

~

,

„

__

..

.

.

.

.

..

..

.

.

.

,,

,

.

_

.....

..

^

„

SALE

Las

JUNE 30

Vegas Grammar

School Educational
District No. 12
Population 40,000

It

would

be silly to suggest a
high price ratio and
low yields as a conclusive method
search

for
or

for

determining company quality
managerial

excellence.

But

Vegas, Nevada

1954 Assessed Value

$107,000,000
For Brochure write:

Zions Bank

Bldg.
Salt Lake City

;

current

of

should stay
long time!
Chemicals

the

in

assets

and

Carbon

United

reserves.

black

for

a

still

glamorous,
still fantastic, and a lot of them
are growing
from specialists into
are

Good

those that continue to display lush

chemicals have

other

ways

rewarding shareholders than
plying them with big cash distri¬
butions. Stock dividends are nice,
too.

Looking




total

stopped

of

LAUREN W. GIBBS, Fiscal Agent

its

known

you'll agree the companies cited
top-flight on both counts; and
you further will, po doubt, agree
that
eager
shopping
for
high
yields among the chemicals is not
a
particularly rewarding pastime.
are

Las

of

over

the current scene,

more

gravy

general-line companies. The
train for chemical sales has

however,

running,

will be those

earning

power

centing

salesmanship,

technical
prowess

and

and

as

well

ac¬

as

manufacturing

and vision.

-

onies

by

the

extremely

Allied

difficult.

nations
After

development of the drug,
posal
of

was

be

this

African

scientific

conditional

restoration

cessful

pro-

made that the privilege

sharing

co very

a

was

their

to

upon

Germany

colonies.

While

duplication

of

of
the

the

disthe

her
sue-

drug

by French chemists made serious
consideration of the proposal un-

"""•An"address

International Atomic Energy Bank
make available atomic energy
materials, reactor designs and
know-how to countries which
Lave inadequate power resources
tbeir own. The resultant rise
*n ILe standard of living in these
countries would

serve

as

most

a

effective bulwark against the,
sPread of Communism,
The speeches and plans referred

t0 ab°Ve leaVe

by Mr. Larson before the
n°
Manufacturing
Chemists'
Association, .United States is
White Sulphur Springs, W. Vau,
June .
.
.
4,1954.
technically ready

tLat the
spiritually

and

_

to

embark-on

Volume 179

Number 5334... The Commercial and Financial Chronicle

program in atomic energy

a

will

contribute

which

substantially

to

civilization.

our

Steel

The
•

From

the field

relations,
to

on

recent

the

I

developments

economics

of

to

Food

and

the

in

ergy
from

I

this

Future"
should

by

like

Palmer

to

before

has

there

been

has

been

"

r

show

the

increased

the

from
was

used

as

the

time

Christ

of

equivalent to

present

time,

the

only

present
of

energy

of

at

likely to be capable
significant quanti¬
low-cost energy by 1975.
seem

supplying

ties of
Mr.

Putnam

nuclear
for

has estimated

fuels

might

supplying about

maximum

plausible

quirements

of

in

2000.

the

15%

year

the

energy

United

To

supply this

nuclear

may

are

become

soon

hot

as

an

issue

as

the

per

and

lenge

presents

per year

a

relatively weak market.

The

surely

that staggers

the

'}■

These

•

are

especially
that

kilowatt

of

can

hardly

this

illustration:

conception
of

have

you

of the

vast

transported

over

plants.

nuclear

tity

fuel

If

could

we

would

be

equivalent to
uranium

of

takes

advantage

reflect

real

demand

it is

because

a

use

The

shipments

spot

a

the

week

could

be

uranium

natural

are

helping

support

fairly

Putnam's

compilation

the

mates

of

tional

fuels

reserves

nuclear

fuels.

mation

given

of

of

its

shakeout.
grow,

As

more

people

become

aware

of

25

The sort

gain

of

statistical

the

in

of

as

the

any

and

possible

save

these

While

teresting,

that, since

over

compared

prospects,

war

"confiscatory," "tax-raising,"

as

■'■

there has been

worry

the bloom is off the boom.

:j

between the market and business; and the

mohths. And,

as a

But this, too, has been
matter of fact, the busi¬

Arthur R. Burns
>

over

'

aj fiis major press

•

the past New Dear-Fair Deal or

Eisenhower

The

as

to

technicians, of course, have

picture.

no

market's
and

to 54.1%

an

easier time of painting the

Now the supply1 area is 330 for the Dow with 300

safe base, etc.,

a

^

'

■■

.

.

market

done

compared to 4.9%

with

tax revision." But, the tax factor did not prevent

etc.

Actually, of course, the technicians have

better than anyone else in

timing the break.

short-term behavior has been proved

explanation!

quent, rise

the

Again, the

beyond prediction

This, of course, will not prevent the explanation

being

laid

"obviously foreseeable''

to

buying, overdue business revival, equities' scarcity
sold-out market,

of any subse¬

pension-fund

value, a healthy

and to "technical factors" in general.

"the

statistics

are

sub¬

coal

*

have been
4"

/,*Ui ».j-

'c?

on

are

page

f




on

final assembly.

STATE AND MUNICIPAL BONDS

CORPORATE BONDS

.

car

Construction

in¬

outlays this year will

Last
at

November,

the two agencies

reach

a

record $36,000,RHODES-HAVERTY BLDG.

ATLANTA 1, GEORGIA

WALNUT 0316

LONG DISTANCE 421

first guessed 1954 expenditures

$34,000,000,000, 2% below the 1953 level.

The revised forecast

Continued

36
/

LOCAL STOCKS

000,0( 0, according to the United States Departments of Commerce
and Labor. That would be 2% above the previous high set in 1953.

significant
developed by

1

sixth-day plans

1894

output, "Ward's" notes.

and

more

even

ESTABLISHED

producers—Cadillac, Oldsmobile, Ford, Kaiser
and
Willys—and six truck makers—Chevrolet, Divco, Federal,
Ford, International and Willys—were working at a faster pace the
past week than in the same period a year ago. Overall industry
volume for June 7-12, however, was 16% below comparable 1953

our

Continued
>

similarly

this,

previous.

Only five

Dr.

synthetic organic chemicals.

--

!,"> ; f;- '*. ':

divergence

infor¬

fossil fuels for the manufacture of

v<-

; :; V:V

Worry

publication

Independents settled for 3.1%

peace pros¬

prospects are now picking up, rather than down; to wit, the

Bolstering Ford Motor Co. production was the programming of
two plants for Saturday work. No other producers had announced

stantially greater, we should use
nuclear fuels as
extensively as

figures

Thus,

rising market, but at others

business prospects." Also in this sector, including

over

the bull markets

reached a week earlier,
The agency counted an

rose

typical, and

j'inflationarjr," button the other

offeredj

are

a

"obviously bearish."

years.

General Motors' share

But

D-J "30%

post facto, the same event to

ex

and

deemed

.

and

has led

above

suggest

esti¬

times

available

supplies of nuclear fuels

-

break

a

decline;

are

conference last Tuesday.

this trade authority reports.

21% over output
Automotive Reports"
states.
a

the

of

way

will interfere."

we

the business prospects, andi that

ness

Chrysler's share reflected a three-day work pattern
Plymouth (five days). Meanwhile, the big
gun of the Independents, Studebaker, closed down the South Bend
final assembly lines last week.
r

conven¬

uranium

that

is

energy

to

of

and

shows

thorium

Curme

the

for all divisions except

thorium.

much

a

rise

a

the situation for many

The dip in

or

"Worry

"The

52.0%, while Ford Motor Co. garnered 30.4% against 30.3%
week ago. Chrysler Corp.'s slice dipped to 12.4% from 12.8%,

while

for

reason

after

at 320?

cube would not have to be U235—

it

citing,

too

from

one

of breeding,

category of reasoning.

along

Why didn't the market conform1 .to the economic factors at 310,

some

during Memorial Day week.

year

If

overdue"

was

previously

sometimes cited to explain

otherwise

over

added that the Big Three had
programmed 96.9% of last week's car volume, against only 95.1%

8-foot

an

metal.

for

134,595 completions during June 7-12,
III,314 in the earlier Memorial holiday week.

entirely, the quan¬
in suDplying the

cube

will

estimated

for

consumed

entire world's demands for

times

steel and automobiles, for a year or longer

Last week in the automotive industry U. S. vehicle production
"Ward's

this country

to meet the demands for fuel

correction

observations by top economist

of

recorded

that

gas

often during recent months,

very

outrunning of the latter by the former."
orders

optimism will
,

by rail, barge, truck, and pipeline
power

I

some

quantities

coal, oil, and natural

are

worst

give

me

tired"

price-earnings ratios of 30-1, some reversal has been

hand, after

false strength from hedging, the steel market is
showing steady improvement based on real demand. There may
still be a seasonal slump during the hot months. But it won't be
as serious as many had expected.
The steel market has passed the

cheaper.

tage of nuclear fuels, let

the

and

it states.

To dramatize the major advan¬

j

follows:

as

fear of American intervention in Indo-China";

are

which

produce hedge orders before the June 30 wage contract

Despite

May

tired look."- But certainly

rationalize directly opposite market behavior.

high level mill operations.
Overall steel inventories are still
sinking. Cancellation and hold-up orders are almost totally lacking,

installed

plant capacity usually re¬
quires a capital
investment of
somewhere about $150 for plants
using conventional fuels — and
plants for nuclear fuels

"looked

a

These two conflicting political "explanations" are

*<

-

orders

on

now

to

Rush

power

be much

comment,

our

"Secretary Dulles' denial that

deadline.

considers

one

to

"The

large numbers,

very

when

one

f

"

.

late

Wilfred

A.

be roughly

may

"overdue."

a

not at all.

some

From

imagina¬

tion.

"A

many

advance

negotiations than they have in the past several years.
Some strike or price hedge buying has been noted.
But it isn't
nearly as big a factor in the market as it has been in past years.

chal¬

a

lows.

interesting. They

the market has

Steel consumers, it continues, are reacting much more calmly

lion kilowatts of installed reactor

capacity

the

weeks, and days; without entailing any such sharp decline.

to the wage

2V2 mil¬

even

more

1953

"The market had been carrying

V

price increase averaging about $2 to $3 a
Some products might be raised considerably more than that,

ton.

Remember¬

figures represent
maximum plausible estimates, we
might arbitrarily reduce them by
But,

in

wage

as

these

a' factor of ten.

t

the explanations, which

are

pects

ably be followed by

that

against *28%

in line with the foible of

watts

ing

the

Some of steel's biggest customers, including auto companies,

an average construc¬
tion rate of about 25 million kilo¬

year, starting in 1970.

2.12%

Second, there

This, it adds, is intensifying steel management's efforts to keep
costs in line. Yet it is expected that the wage agreement
finally reached will call for a 5c to 8c "package." This would prob¬

power

capacity

of

and

Chippy D. J. Industrial Average—both in

the interval since the

more

producer^ at

installed

•

24% rise in the Dow-Jones Composite

a

Average,

wage

of

' /: '

'•

potent today than he has been at any time since World War
II, comments this trade weekly.

re¬

States

esti¬

provide

•/.«-"*,:

Actually—the day's doings should also be
seen in the perspective of a mere 2^4%
drop

already have their backs bowed to resist any move to raise prices.
While it is doubtful that they can forestall the increases, they can
certainly make it unpleasant for their suppliers. The customer is

demand it would be
necessary, on
the basis of Mr. Putnam's

mates, to

the front page.

have been alerted in advance that if steel loses at the bargaining
table they can expect some steel price increases.
Some of them

the

of

etc.-

•

.

risking price increases in

/

that

suitable

be

1

prices

They had hoped they could keep the cost of a wage agreement
low so that they wouldn't have to face the issue of
higher prices.
But they feel they must raise prices if wage costs
go up more than
a few
pennies an hour, this trade paper observes.

are

that

sources

aver¬

question, according to "The Iron Age," national metalworking
weekly, this week.
They could turn out to be hotter. That's
because steelmakers are gradually being forced into the position

our

fuels

Output of

1950,"

29,

tape,"

For the first time in months the market made

summarized, together with

energy
burn-up rate is greater
than 10 Q per century.
He goes
to show that nuclear

1,966,043, off 112,700 from
earlier the figure was 880,346.

unchanged from April, but 13 points below May, 1953. The
seasonally adjusted index rose to 125%, from 123% in
April. This was its first increase over the preceding month since
Steel

the

year

a

to

age,

last July.

at

declined

sharpest/break since June
"deluge with a four-minute late

Blue

equivalent to 38 billion tons of
The burn-up rate in 1850

ever,

total

tumble," "the worst break in years," "a
decline," "electric market action,"

Board's

How¬

4

'

"the

the nation's mines and factories stood at 123% of the 1947-49

to

good

a

major market

a

full
in the
day-after news accounts.
The
morning-after commentators described Tues¬
day's action as "an inundating selling-wave,"

after

1018 B.T.U.,

about 1 Q per century.

the

29,

preceding week and

coal).

<

May

drop.

about 6 Q ("Q" is the term

of reacting to

again we have the seizure by the press of the oppor¬
tunity for dramatization. This was done to the

Industrial production, the Federal Reserve Board
reports, held
firm in May instead of taking the usual seasonal

rate

furnished

"disturbance"

market

public's way

change.

"a

below two million for the first time since January." In the week

burned

little

the

of

waterfall

ended

-

week's

the Reaction

to

First

Unemployment among workers covered by state jobless pay
systems, United States Department of Labor reports, has fallen

burn-up energy, Mr. Putnam
shows that the cumulative energy
1650

However, it continued

Last

microcosm

year ago.

May 22 decreased by 2%, registering a decline for the sixth
week.
Virginia and North Carolina were the only
two states showing sizable increases in continued claims.

of

used

a

the

consecutive

been burned since 1920, and nearly
one-half of all the coal and gas

! To

high level of

in

'

ended

In the United States, one-half
of all the coal ever consumed has

consumed

Wednesday of last week.

on

upward

Over-all decreases were gleaned from latest reports of claims
unemployment benefits. Initial claims for the week ended
May 29 declined by 1% from the week earlier and were at the
lowest figure since last November. Continued claims in the week

-

ever

slightly

for

rate at which energy is being con¬
sumed. The rate is unbelievable.

since 1940."

trended

some

world-wide interest in the

a

production

to be down from the

vA''

"Never

such

industrial

period ended

quote

significant
help to place

source

spective.

on

Reaction

J
Total

may
nuclear fuels in their proper per¬

was

Business Failures

of the

year, one

figures which

or

Industry

By A. WILFRED MAY

Index

Production

significant books in this field

Putnam.

•

Price

Auto

power.

published under the title "En¬

was

Commodity Price Index

of

to

Trade

Retail

State of Trade

move

related

nuclear

*, During the past
most

like

consideration

Observations...

Carloadings

international

should

brief

a

of

Production

Electric Output

Economics of Nuclear Energy

.

5

(2657)

on

page

38
f

:
*4

.C.rJW

.

s'i'

*

(

M.-I./;

.'•i '

'X'.

!

'til)

iff

,

•*: '1 J-

^

f •

A VH '

.

")

i 2if V

* ■*»

: »>»I*U4 » •

V*

•
'-at

k

«>» «*»

6

The Commercial and Financial Chronicle...

(2658)

the

required in 1951-1952 a rating. This rating is most help¬
Defense, Agriculture, Office 4 ful from an internal government
of Defense Mobilization, etc., are
standpoint, particularly security.

Chemical Marketing Problems t
1
In Defense Market Research

quirement

Division

The

Chemical Company

Davison

-

Business^ and Defense Services Administration
'■

I!

:

«''

Mr. Hathaway describes operations

\.
| -

/'■

'■

t

h

•

of the Business and De-

r

1

„■

'

»

ture

of

•

on

r

Market research in the Business

statement

and Defense Services Administra¬

department

tion

United

is

done

quite

chemical

by

trade

different from

that

companies

or

organi¬

sations.

It

different

died

)
1

majority of the people in
this audience. It would be a rapid
the

answer

sales managers sometimes pose

crisis,

sales, and

was

which.it

manner

and i?

used

was

be

used, may

explanation,

some

con¬

require

i

made
Norman E.

U. S. Code Title 18 it is a criminal

make

address

by

willfully false

a

Hathaway before
Marketing
&
Economic
Section,
American
Chemical
Society, New York City.
Mr.

Chemical

York

considered

using

emergency

Division.

icals.

Since chemicals

intermediates

For

example, the "essential
civilian requirements" of phenol
are
really difficult to figure. To

ket

similar
types
of
trained chemical mar¬

many

industry

them

from

with
amide

an

needed

were

and

quickly

provided

number of

a

chemical

it

PROCESS

organization

°

served

were

but

one

of

phases of operation requiring

market

research.

Need

for

plant

process

Mergers and Consolidation Studies.

ments

oh

top

of full

quirements—was
•

New Product Analyses.

•

Techno-Economic
spectus

cant

Techno-Economic

'
Audits

for

Pro¬

'

i

of

Com¬

panies.

°

and

of

Projects

for

Invest¬

Company Expansion.

Growth Products.

Financial
tors

as

Other

Comparisons of Competi¬

Related

to

Stock Prices and

Economic f" and

:

id

Managerial

and the chemical industries

realized from the 1.400-odd
apoli-

processed

by the

Chemical Divi¬

sion.

/

•

For this necessary- expansion of
the chemical

industry each orod-

uct

had

to

be

surveyed

and

two

answered,

questions

(1)

the commodity needed for the

was

defense

there

and

program,

was

shortage of facilities for

a

the production of the material.
the answer t6 these two

"Yes,"

search
and

was

two

obligation,

write

lor

was

If

defense

market

re¬

brought into the nlay
initiated.

urograms

The

capacity-distribution study.

a

These
our

two

tially the

same

essen¬

approach chemical
men

take

to

A

CONSULTANTS
TO

for

Chemical

Due

"where do

The
from

INDUSTRIES

do

17, N. Y

only

industry

we

we

useit."

answers

need"

.were

and

not availab1^

"how

"where

much

dq

we

it."

These were to come from
the government, with miUtarv re¬
use




basically

Because
and

the

of

this

general

large
lack

Another
search

This;

division's

research

quirements
"where

do

answering
we

use

it."

much
Some

-

for this

use

is

data

mobilization

-

market

re¬

in

establishing
requirements.

base

in

non-government
lan¬
guage, means the chemicals neces¬

was
rolling; the proce¬
initially established' were * sary to operate the military or¬
acknowledged to be right; and. ganization and the civilian econ¬
they proved so effective that they omy under a partial or complete
were
adopted
by
many
.other- war.
Naturally, under fu 1 mo¬
groups in NPA.
'' Y;'V
bilization, the problem multiplies

program

dures

At

the

height

tivity, there

NPA

of

380

were

because

the

of

minimum

ac¬

people

Still

in

will
assist

Presently, in the successor group
in BDSA, there are 32 people.

need

civilian

another

be

the Chemical & Rubber Divisions.

■

in

establish

to

requirements.
this

of

use

data

disaster

planning, to
leaders in essen--

tial

The

work-load

has

.industry

plants to be prepared fdr
bombing attacks and sabotage.

naturally

Export

decreased with the | curtailment of
allocations and reduction in cer¬

Chemical

tificates

necessity.

because
it is vital
United States should be

industrially

prepared

search work started by

NPA.

<

to date to avoid

up

on

Division

co-

Iron

effort.

war

decision

a

non-essen¬

are

to

as

This

export to

Curtain countries.

Stockpile Requirements

repeti¬

Stockpile requirements
other

coordination

an¬

function.

created

Chemical stockpiling by, the gov¬
beginning of World War II; ernment presents few problems.
beginning of Korea. Dur¬ Rubber stockpiling situation is of
ing the next set-to, if ever there considerable importance both to
be
one,
we
will not have six the industry and to the govern¬
months to get our industry under¬ ment. There has been some
ques¬
at the

and the

way.

lished.

and

be

Systems' must
those

allocations

must

estab¬

responsible
know

the

for

exact-

situation from month to month.
The

Division

presently or¬
is attempting to do just

ganized
this..

as

J

from

BDSA.
the

information
for this job

able

and

of

be worthwhile to secure distribu-"

tion

tariff

In

tion.
arid

their

thinking^
are

and

next.

Department

fre¬

new

programs

availability
of
consumption pat¬

essential.

development is
tion of

and

research

an

New

weapon

example, loca¬

a

name you;

of

natural

Economic

\

chlorine

reports;

will be
0;' .:r:

data

'ij,

The

periodic

them,

pertinent

lished.

alkali

and

pub¬

'*'£ ]
indus¬

appropriated $5,000
studies by the Census Bureau.
recently

try
for

Data obtained
normal

hand

on

the

and above

over

are

reporting

inorganic

on

chemicals. Included

(1) stocks

are

of

beginning

the

month, (2) production during the
month,
(3)
consumption during
the month, (4) shipments and interplant transfers, and (5) stocks
hand at the end of the month.

on

As

result

a

the

of

comprehen¬

sive

supply-requirements studies'
performed by NPA, the Defense
Production Authority and its suc¬
cessor

ODM, set expan¬
60 chemicals.
that, many prod¬
expanded without goals

agency,

goals for

addition

on

were

"one

a

over

to

of

kind"

a

those

consider

can

to be basic to the

basis.

60

We

chemical^

industry.

The

magnitude of their expansion
related

Nov.

was

1953, at the
combined national meeting of the
on

19,

Chemical Market

Research

Asso¬

ciation and the Chemical Market¬

Economics

ing

and

the

American

At

that

ments

Size

time,

were on

of

the

Division of
Society.

Chemical

Defense

require¬

the decline.

Marketing Problem

The size of the marketing

huge

a

rubber,

subject

forecasts

hear

that

Harold

Smith,
division,

We

present

director

of

paring

recommendations

the

lem that confronts

is

pre¬
c o n-

prob¬

all

and

nated with

the other industry di¬
forwarded on up the

visions

and

line,

project that

a

considerable
due

excellent

decision

panicked by
ness

that
may

The,

which

a

we

recently

to

refuse to

be

downturn in busi¬
have

reason

to* be-

.of

have

th's

outlined

so

far

aTe

petroleum and coal products,
iron and steel, for all

industries

since

1945.

(2)

The

plant and equipment
of all manufactur¬

expenditures

ing

-

industries ' have

increased

rojighly 59% since 1950. The cor¬
responding chemical industry ex¬
penditures have near\v doubled,
or

information

in¬

with

manufacturing

received

Eisenhower's

be only temporary.

uses

I

has

publicity

Fresident

to

coordi¬

manufacturing

(non-durables) in dollar
expenditures for expansion since
1938, and alternated for first place

with

be

other

dustries

cernina the health of the chemical

will

be read¬

industry has

The chemical

(1)
led

industry.

These

us can

ing.

another

are

point of use of these statistics.

liye

Similarly, the Industry Evalua¬
Board, which is

read¬

can

effect

deterioration, might have on
foreign policy with Britain,
■considering her rubber interests.

chemical warfare in¬

stallations is another. \
tion

You

the

our

~

ily understood from some simple

desires speci ic informa¬

In

well.

as

understand

■

statistics related during that meet¬

reports, the Bu¬

eomes

Defense

chemicals
terns

plications

"

.

addition; if funds are avail¬
or
if the industry cares to

able

finance
on

of

some

on

our

This is basic

of this data

proced¬

problem, and I am
a subject of inter¬

the industry for years to
This has many foreign im¬

to

come.

patterns

chemicals.

to

the Census
information,
Assembly,-interpretation, and use
JThe

est

governmental

this

cer¬

comes

supply

Mines,

Bureau.

quently

it will be

We

tainly feel at Davison that it will

stock

others,- and data avail¬

from

reau

in

people
industry and

welcomed.

be

avail¬

requirements
studies, the capacity-distribution
studies, the foreign economic sta¬
tistics relayed b,y. State .Depart¬
ment

about

ure
sure

ily

Essentially,
able to

tion

end

research

market

to

ucts

are

the

field,

.

tool

In

be

the

of

will be released forpublication.
To my
mind this
should provide a basic working

sion

The

must
a

Rubber

to Russian

enables

supply-requirements and produc¬
studies

&

chemical materials

any. tial

for

emergency, .BDSA must continue
much of the defense market re¬

at

eign Commerce to determine what

However,
that the

also
enters
into
the
the moment.
The

problem

50%

patterns

use

oMirrVs wi h the Bureau of For¬

of

of whom occupies more

none

should

J

cases

producers ex¬

more

or

may

not

have

,

tri-'

those

In

within the chemical

obvious

standing, top administration fre¬
questioned the approach.
the

where four

than

under¬

quently

once

of

on

to

styrene

.

ucts. ;

number,

of

Coordination

re¬

available

be

with
this
group
is
necessity. It most cer¬
tainly would i be difficult to at¬
tempt to do the same thing with
organic chemicals, just from the
sheer weight of number of prod¬

T

industries.

sound.

ist,

an

the chemical

ber of goals for all

control¬

will

data

approximately 50 chemicals, rangi'ng from acetic acid through for¬

information

the

to

Of

market

chemical

Defense
search

defense chemical market research

sole

alu¬
diversity of
industry, the 69-odd
chemical goals established were a
large percentage of the total num¬
minum.

will

to
iron, cop¬ maldehyde
and aluminum.; The idea is Chloroethyiene.

per,;

in' iron, copper, and

interest

by

-

a

the

It

ling the three metals:

the

NPA's

is
in

use

with other work.
as
well.
Also, the chemical in¬
dustry is prone to overlook the
need and some prodding will be
necessary to assure complete co¬
operation.
'• V
•
*

roughly twice the

dustrial

average.

.

overall in¬

i:ii

-i(3);/A manufacturing Industry.,

industry and plant is then given

A capacity-distribution
study is
do we make how much''

t

and

York

have" and "how

"where
THE

CHEMICAL

New

we

need."

we

Sys¬

personnel-

meager,

are

fairly busy

are

of

supply-requirements study is

much do

DMS

available

Ac¬

of

questions posed in the indus¬
try today.
j
"how much db

has

research.

of bomparable .- sizes; ^he^ steel
'
previously; entirely within government.
works -"and
rolling jr-ills. rshows
depends upon the specialists in / iJq" be properly prepared I for
the Chemical & Rubber Divisiori- any. further-mil:tai-y -action, all Of- only a 23%'increase in. capacity.
/
Since NPA was riot the. con¬
for all technical and industrial in¬
this type of information must be
trolling agency- in the final de¬
formation and recommendations/ kept up to date.; As an extreme
cision-, there were numerous op¬
The Industry Evaluation Board is example,, let us
consider hypo¬
portunities for* differences-.with
a«
group
under
Department of thetical:^ that benzene is devel¬
other governmental departments.
Commerce sponsorship composed oped as an additive to rocket fuel.
The
estimated
requirements
of
of high level government repre¬
At-the present t me, the manu¬
the military
were
in some in¬
sentatives
from
several
In
depart-' facture of rockets is lim ted.
stances inaccurate since technical
ments. Their purpose is to specify
the event of any type of mobil¬
knowledge
of
chemical
com¬
the most essential industries in ization, however, the demand for
ponents of many products were
the United States from a military
benzene for use as a rocket fuel
not known. The same can be said
standpoint, and the most essential would enlarge tremendously.
of some of the other governmental
plants within that industry.' Each This would considerably affect

an¬

swer

•

Avenue,

are

for¬

Con¬

management

industrial -problems

--

programs

market research

R. S.ARIES & ASSOCIATES

Park

be

can

of
these was a supply-re¬
quirements studv, end the second

newsletter Chemonomics.

270

proiect

first

ASK THE SPECIALISTS

'i

this

of

scope

was

in chemical

you.

Without

the

questions

the Aries experience

processes

capacity exoansion was
accomplished by the Certificate of
Necessity program.
An
idea
of

critical

Factors.
Let

signifi¬

problem.

complishing the fact has not been;
and
will
not
be
easy.
Funds

this

for

emergency.

effective

enable

-

Licensing of Proven Processes for

•

another

research

re¬

cations for certificates which were

Selection
ment

market

civilian

National

Studies

Us^.

T'TTv-'"'TyT

•

the

of

overcome

tion of the vast confus

manufacturers, expansion t o m e e t a butterand-guns economy — superimoos"underwriters and investors in:
ing partial mobilization require¬
and

to

time

some

directors

Division

kept

f !">/-»

»■»«-?

p

allocations

the

has

]VTP A

and Defense Services Administra¬

tion

INDUSTRIES
(hemieal

early

took

tion-distribution

companies.
TTv-rJpr

CHEMICAL

between

amine

an

he

the

in

difference

and

INVESTMENTS

men1 familiar

research

the

concerning

the

of other

processes

products or other chemicals, trac¬
ing them down is generally diffi¬

problems,

ARIES KNOW-HOW

into

enter

and

manufacturing

mainly

are

market

in¬

by

Essentially,;
an

everyone 3

industry that it is

to continue government

Materials

program

of

almost

by

chemical

This

superseded

agreed

in the chemical
necessary

or

Plan.

Defense

standby
event

Consequently, the industry was
little
understood
in
Washington

nel.

necessary to eliminate
nonessential uses of certain chem¬

handle

the

Aries

of

is

devised.
H

This
required
an
extremely
large number of qualified person¬

cult.

you

period

any

which

& Rubber
i / *1

it has been

Hathaway

under

offense to

In

the Chemical

by

which has confronted the country,

datory.

The

But, the

an emergency.

tinuing to

information

such

in

the

man

Have

fairly clear that the gov¬
needs

been

now

industry.

Materials

been

in¬

was

CMP

as

cide/and many other industries.;
; For
all these reasons, it has

the

to

Allocation

synthetic rubber, plastics, insecti¬

of

system
over

we

15,000 known

over

But

to

departments.

in

of

Then

New

is

It

various chem¬
to

research

ernment

con¬

sumption

to the impossible problems

market

reporting of
production,

♦An

method of obtaining
would obviously be a delight

i t y.

during

the

essence,

the

o r

Korean

NPA

In

either answer the questions or

data

to

Prod uction

icals

the

matter

any

peremptory

the National

Au t h

any

retir^ from business affairs; This

be¬

under

cause

to

chemical

v

well

carried

known

trolled

na¬

est, 101 trade associations directly
han-

of

agency

.

as

within its jurisdiction.
you

is

or

States

diverse

associated with the products

representation to

or

the

are

the

was

chemical

tem, which a number of econo¬
products and, as a point of inter-, mists, a few with short
hair; have

and
I

NPA

There

Chemical
marketing problems. Stresses need of keeping information
regarding chemical production and its marketing avenues up to
date, so as to bejfujly;prepared for military action. Points out
vast size of the cheihical industry creates a serious marketing
ptoblem, which tends to result in the evil of overexpansion.
fense Services Administration, and its impact

under

has

merly

problems

'One of the greatest

Democratic

cumbents.

t >;;/

Industry T

Formerly, Director, Chemical and Rubber Division,

itials

of Chemical

Diverse Nature

the

seen

rating; obviously
high on the list.

must be

received just last

was

never

industry's

February.

Sales Manager, Industrial Chemicals

General

mobilization

total

have

I

The Army's
nitrogen
re¬

just coming in now.

By NORMAN E. HATHAWAY*
*

answers

from

Thursday, June 17, 1954

heard

the

aviation

gasoline

program.

Continued

on page

20

Volume 179

Number 5324.. .The Commercial and Financial Chronicle

7

(2659)
-Jilt

4,'uLr'j'i.

4.

that

The Paper Industiy Commands
Financial Respectability

stant
lose

company execuii/e reviews growth and progress of the
and its by-products industry, and points out the industry
has gained "financial respectability," and is no
longer a "feast

applied to increased

-

-

paper

of

amount

A""'

staff

"A

,

'

'

V:,

.

Naturally, I have

great

a

deal

industry. In
circulating throughout the industry I think you win tmd i.ie aanie
*
feeling among

new

u--

---

*

all paper peo¬

ple.

What

is

more

in¬

teresting

to

even

I

is that you

me

also appear to
have faith in

the
:T

that

n

Oim-

when

the

it

ican

William H. Cnishoim;

Paper
'Vi,;..*:;
Pulp Association,

and

industryhave

"We

ac .ieyeu

(the

m

me

past decade what might be termed

whose

one

-what

equities
smell

sour

had

some-

a

for

except

the

the

bankers

look

it

1953

to

had

244

individual

had

319

and

and

woman

raised

;

would have

of

To

more,

been

17,700,000

in

tons

form

that*'is

the portfolios
insurance

found

in

of trust companies,

companies

others

and

in

the

a

moment

a

of

Today I think

years ago.

will

you

find that the securities of the in-

-dustry

are even

and that the

widely held

more

percentages held by

-various institutions have increased

considerably. It certainly looks as
though we have acquired "financial respectability."
What is the

for this feel-

reason

ing of confidence? There are sev"eral, but I think the most impor-tant is the steady growth that has
been and continues to be shown
the

since

industry

in this country.

by

National

the

founded

was

Figures produced
Industrial

Con-

ference Board show that, based on

long

a

term

.growth

rate

*4.66%.
more

I do

trend,
for the

not

figures than

illustrate

to

realize

that
in

ested

the

annual

industry ' is
to

want

seem

use

necessary

points.

my

I

also

more

are

you

any

inter-

and

future

the -current

situation than you are in the his-

tory over the years. Howevdr, I
r think
you will
be interested in
some

of

.ground

the

following for

purposes.

back-

-

In

-

1939

of

Paper

the

your

paper

house

facial

tissues,

goods and drug products; the carin which the products you
are
packed, the magazines

tons

buy
and

business

publications, the
bag which carries your groceries to your kitchen, the everpaper

increasing
the

box

milk

paper

which

container,

contains

your

wife's facial powder, the letters
y°u receive, to say nothing of
your pay-check—these are hardly
luxury items, but- rather products
that are tied in to trie standard

the

paper

There

are

three

tons

In

or

an

1953

industry

broke

all

records and manufactured 26 586,r
tons.
In
other words,
in a

-000

period of 14

years

most

doubled

trend

exceeded

for the

the

production al-

and

the

that

growth

of the

long term trend.

reasons

growth?

for

this

The first

4.66%

What

are

outstanding

one

that

comes

Eoston, Mass., June i, 1954.




oaoer

ground-wood

a

hardwood

pulp

would

their

particular
fact.
And
be part of

inducement.

•

Others

were

the

overall

markets.
Secondly,
paper and board
products, with
the
exception
of
the
building
field, are consumption products,

usually limited to

a

then thrown

one-time

be

sure,

remarks

mv

be

to

concerned

own

away

to

—

depressicn-proof

not necessarily
but they cer-

—

tainly minimize the ups and
downs of the economic cycle,
Before

I

capita

leave

to

Effort
in

seems

un¬

enlightened self-interest
tate a realistic appraisal
vidual managements of
situations as they arise
result in sane solutions
leave this

will dieby indivarious

and will
of those

subject, there

other important difference
jn the situation today as against
the 1930's which I would like to

to

one

mention.

seeking addi-

tional volume by developing

spur

a

proving every phase of the production and marketing of our
products. What .I do think is that

js

their

greater extent

a

concentrated

to

is

that

new

are

uses'

You

have

often

heard

prices in the paper industry

controlled by prices of Scandi-

e^ent this. effort is navian
succ^sful, it will promote greater true to
nate inventory losses in the hands

-

some

than

cases

little

a

mark.et Ability, reduce

x

--

in*

more

in

that

1953

In

ure.

we

this

or

the 1939

over

grouping

manufacturers
turn.

Thus

to

the

an

use

earn

fair

a

individual'

facturers would

withal to

re-

manu-

the

quality,

have

such

a

seeking to lower costs of production, or at least to keep them

the

25%

and

of

this

coun-

the pulp that is purchased by nonintegrated mills. Naturally, when

where-

in improving

20

try's total wood pulp requirements
anct 60% of this country's market
pu}p requirements, that is 60% of

in

fig¬

over

tween

customers, and,, within limits,
enable
paper
and
paperboard

production

10,316,000 tons

increase of 77%

elimi-

of

others.

specific, if

or

pulp. In the 30's this was
a large extent. During that
period Scandinavia supplied be-

large proportion of the in_

Continued

on

page

40

period book and groundwooc
paper production
increased 68%,
fine

papers

53%

ana

76%,

tissue

coarse

and

papers

sanitary

This is not

pa-

130%. In the board segment,
on the other
hand, production was
13,863,000 tons in 1953 showing aii
pers

■

increase
this

of

131%

figure

is

included

board which shows

1,120% increase
h

over

an

offering of these shares for sale,

buy,

any

or an offer to buy, or a solicitation of
of such shaves. The offering is made only by the Prospectus.

offff
i

building

88,000 Shares

the 14 years.;'

the

an

%

In

astonishing;

an

New ,Capital in

| You Will
been

1939.

over

to

1

Industry

Lily-Tulip Cup Corporation

note that

so far-1 have
production and

using only
capita consumption figures, i)
fully appreciate that no matter

per

Common Stock

how high production or
consump-,
tion may, be,
if the

capacity

fubstantially higher the return

(Without Nominal

is

or

Par Value)

on

the

investment

will

familiar, I

are

am

suffer.-

You-

with the
of capital that

sure,

tremendous amount

Rights, evidenced by Subscription Warrants, to subscribe for these shares
at $65 per share have been issued
by the Company to holders of its
Common Stock of record June 15,1954, which rights
expire June 29, 1954,
as more
fully set forth in the Prospectus.

has been poured into the
industry.;
In the postwar period the
rose

from

increased

on

productive capacity.
let us take a look at^

Therefore,

.

The sevenfkUnderwriters have

*'

agreed, subject to certain conditions, to
unsubscribed shares and, during and after the subscription
period, rriay offer shares of Common Stock as set forth in the Prospectus.

purchase

any

production rates. Prior to 1940 the

high level in operating ratios

was

U3e.

paper

industry stable

demand

with

more

their production

gearing

far

so

competition

to the exercise of ingenuity in

away.

used, is thrown

once

and has

many

meet

time to time, individual manage- situations.
ments in the paper industry now
Before I

full

the 84.1% of 1920, the 1929 ratio
Unlike being 81.3% and the average for
an automobile or a refrigerator the '20s was 77.95%.
In 1932, it
which can always be used one sank to the low of 58.3%. We
year longer if the money is not realize, of course, that under cur¬

and

to

highly competitive industry, for

a

much

so

be

expended

per

thJALs^teSecuJityr'AS^^'mshi'e°ry';

panies

usually served by competitors, needs, emphasize this
Th.is c?uld be done> if at all> by L f°r one, am glad to

$18,700 in -1945 to $31,000 in 1951,
would lik^ to make about the the latest
figure I found available. >
end-use cf paper and board prod-, Although a good deal of the ex¬
ucts. First, because of their wide penditures have gone into re¬
spread utilitarian use, isales are placements and
quality items, the"
less subject to the fluctuations of greater amount has been

be renewed. Finally,
and board products
are^eeonomy items ro that when
the head of a household's income
decreases his wife's purchases of
paper products tend to increase,
while a manager of a manuiacturing plant, in attempting to cut
costs, looks to paper and board to
substitute
for
more
expensive
packaging and building materials,
All these factors heln make the

increase of almost 43%.

the

today

and

points I

towel,

paper-

have

that

investment per worker

other

and

industry produced 13,510,000 tons. By 1946, despite .the war
years when construction for increased capacity was made difficult by government
restrictions,
that figure had risen to 19,278.000

secu,rin§ business from customers

daily

would

ago

average-

°t living in America,

Industry

board

years

amounted to

impor-

there to buy a new one, the paper
Growth

10

up your

'Who

another swim show.

find

of

the labels identifying your canned

two

pushing

keenly competitive. The number of companies in the industry,
the varying status from time to
time of those companies, the determination of marketing policies
by .managements of those com-

as

new

take the oaper segment
excluding
newsprint and building papers, we

one

statement

over

V.»

dividual management to operate
rteaf^opacity as possible,
In, tbe ,past, therefore—take the
30's'for example—as demand receded there was a general effort,
to ke?D
hulls-running full by

research

products emerge

girls wearing paper bathing
you would have jumped at

To be

utilitarian

of

to

and

(»(»-•»'

t

same

papers,

made

new

chance

-

the

and see if you call it a luxury:
The morning and evening -newstoilet

'

Competitive Industry-

not Passive and, there being only intelligent

so

per

luxury. -Just

a

delivered

» •<

opportunity for investment.

A Keenly

Because of the high ratio of in-

mdustry, but the points made at)ply to all segments, though more

vicinity

board products in

than

•

vestment to the per ton market
Knowing the paper and paperprice .of P3?^ and paperboard, board industry, you realize it is
there is a strong incentive to in-, and will continue to. be actively-

growth have been general and
lave included all segments of the

emphasize

engaged in fiduciary work." That
was

its

each' year

and

on

con-

had the

or another is a most

rather

sound

price

To

child

his

instead

tant factor, for it is
use

*

attains these objectives presents a

that

By

capita consumption remained at
the 1939 level, 1953 production

think for

are

80%,

I

'

from
rising, and last, but not
least, to pay regular dividends to
stockholders. Any industry which

from

suits,

*n
the United States used 392
pounds cf paper anq paperooard.
During the intervening years eaen

number of

mills

95%

were

1

1 «

be made of 100% hardwood

with

1939

pounds.

reached

each man,

favorably upon us and even to
the point where the equities of a
our

,

intro-

he

In

paper and

that

in

w

just

consumption.

.and dividends and

>cover

paper

and

incorporated in newsprint or that
fruit would be
shipped in fiber-

un¬

actual 26,566,000 tons,
-This personal consumption

positive signs of
industry leadership, we dis-

*, I

made

the

-rankest speculator. Today, because
of a 10-year continuity of profits
sound

For

93%

they

than in the past.

even

famine industry and

resource¬

breeze and the aquacade would be

by 61%.

or

board

strength

sumption

feast

/'* r

1 *

pulp,

is

has

for

uses

for the

reasons

this point

a

for

industry, let's glance at the

gone

as

popu-' would

the growth

on

new

financial

respectability. In years
by the investing public and
banking fraternity pigeonholed us

i

1953.

83%,

of
anticipation!
Today your day's sail would be
a
pleasant one even in a brisk

amounted

1946

Amer¬

' 4

96% and 91%.

eight -billion" paper milk bottles
would carry almost half the
liquid
milk sold, that a

There

better look at the

a

capita

per

President

was

and

seem

derlying
of the

he

engi¬

the

1946
were

while

foresight

enlarges

paper.

believed

the

To get

February,

.1952

1939,
they

the

and

< t *i

business overall, none
c?uld Sain or keep a disproporbut it is by no means the most
ii0113*6 volume, but prices to all
importantc element. The popula- board containers. If a friend had were lowered to a point where
tion increase from 1939 to 1953 is
asked you to go for a
day's sail some were selling at less than
estimated at approximately * 20% in his new boat using paper sails cosU'These past experiences have,
as
opposed to the industry pro¬ you
would
have
thought
him 1 think, not been forgotten.
To
duction growth of 97%. The most
crazy
and if you had received meet the fluctuations in demand,
influential factor for the
an
invitation to see an aquacade which are bound to occur from
growth

ing number of

}a
made

of

use

of paper and board is the increas¬

in

and

which keep

products.

speech

and

men

salesmen

v

population

substantial effect

a

industry.

rs ted

of

question

no

of

Driniing

in

that period.

over

quote

o

"George

ii

i;..,''.
to mind is the increase

lation

the

of

methods and

capital
production, and calls attention to

of faith in the
paper

cellu¬

ingenuity

brains

courage

equipment

high operating ratio to plant capacity. Says there is no.
longer a drain en nation's palp wood capacity, and new growth
equals consumption. Calls paper industry "a grcwth industry."

,

of

uses

This

ducing a new pro*dUct"Each*year
the industry adds to its research

'

its

■

tne

fulness

Paper

Cites large

new

V k" - * " i

.

operating ratios of the yea'rs we
have discussed previously, namely

>

paper

industry.

of

of management and

Vice-President, Oxford Paper Company

famine"

flow

products.

neers,

J.

I

,1

ingenuity of the inillustrated by the con-

as

springs from the
technical research

By WILLIAM H. CIIISHOLM*

and

Aiji

iu'jg

'

the

is

dustry

the

subject of
consumption there is

rent

operating

may

be obtained from

dealers in securities and in which the

the

any

only in states in which such underwriters

Prospectus

of the several under¬

are

may

qualified to act

as

legally be distributed.

break-even point is higher than itin those days and operating

was

at

60%

a

time

level for any

length of
drastically
reduce-*

would

profits to all and in

some

instances

Blyth & Co., Inc.

probably eliminate them.
How¬
ever, due to the inherent stability
of the products of the
would

that

seem

swings

in

The First Boston

industry it

the

consumption

85%

and

100%

down

or

time.

with

a

Corporation

Smith, Barney & Co.

following

A.G.Becker&Co.

few

points

Central RepiihlicjCompany

Incorporated

(Incorporated)

Hallgarten & Co.

Dean Witter & Co.

for

short

periods

of

was, shown
in 1951
when, under the Korean influence,

the/industry
and

in

tse

the board

another important
like to give

might

operated
1949

at

recession

when

June 16, 1954.

industry dropped below

For comparative purposes it

be

Moore, Leonard & Lynch

102.8%

interesting to

give

_

the^

Dominic1; & Dominick

Model, Roland & Sto

This

up

Wertheim & Co.

normal

the average economic cycle would
place the ooeratinf? ratios between

85%.

reason I would
for its steady rise and

conditions

Copier of the Prospectus
writers

le

8

General Railway
44 Wall

ter C.

11

send

to

—Brochure—Lauren
Lake

Stocks—Analysis—Wood,

Common

Inc., 14 Wall Street, New York 5, N. Y.
Chemonomics

chemical

Newsletter

—

industries

New

the
Park

and

processes

Aries & Associates, 270

Investment Bankers Association

Annual Convention at the Holly¬
wood Beach Hotel.

England

Lime

Haigney

Co.—Analysis—Dayton

Lewis Elected Dir.
Of Greater N. Y. Fund

Co.,

&

by Canadian Life Insurance

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

Western

Savings Fund Building, Philadelphia 7, Pa.

Snap-on-Tools Corporation

Book"—Preferred and common shares listed on
the Toronto and Montreal Stock Exchange considered eligi¬

"The Eligible

Office Square, Boston 9,

—

Report

Lerner & Co., 10 Post

—

Mass.

J. P. Stevens & Co.—Analysis in

Companies—

current issue of "Gleanings"—

Francis I. du Pont & Co., 1 Wall Street, New York 5, N. Y.
same issue is a list of Seasonally Favored Stocks.

Cochran, Murray & Hay, Dominion Bank Building, Toronto,

Also in the

Ont., Canada.
Casualty

Earnings—Annual

Insurance

Transamerica Corp.

Comparison—

Broeck &

Y.

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

Japanese Industry

—

Analysis of outlook

—

—
Memorandum — Oppenheimer, Vanden
Co., 40 Exchange Place, New York 5, N. Y.

Upson Company—Analysis—Aetna Securities Corporation, 111

Japan—Circular—Yamaichi Secu¬
Co., Ltd., Ill Broadway, New York 7, N. Y.

Investment Opportunities in
rities

Educational District No. 12 Bonds
Gibbs, Zions Bank Building, Salt

Stores,

Noel &

Weekly Stock

&

(Hollywood,

Philadelphia Electric Company—Analysis—J. W. Sparks & Co.,

Bulletin—The Nikko Securities Co. Ltd.,
4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.

Fire

3, 1954

Niagara Mohawk Power Corporation—Analysis—Van Alstyne,

Performance For Japanese Stocks—In current issue

ble for investment

28-Dec.

Fla.)

Inc., 75 Federal Street, Boston 10, Mass.

Avenue, New York 17, N. Y.
Earnings

Broadway, New York 6, N. Y. Also available is a bulletin
Texas Natural Gasoline Corporation.

on

Salim

in Monthly Stock

Lewis

NihonbashiTori, Chuo-ku, Tokyo, Japan, and 61 Broadway, New York

senior partner in the

6, N. Y.

Stearns

Digest—Nomura Securities Co., Ltd., 1-1 Chome,

Wall Streeter Salim L.

York

4,

N.

11 Wall

BOND CLUB OF DENVER

•

letin

5, N. Y.
on

43

Aluminum

Also available is
producing Uranium.

of

Co.

i

Hotel.

companies—J. A. Hogle & Co., 50

Broadway, New York 4, N. Y.
of the mines

the Investment Bankers Association will hold their annual summer

BOND TRADERS CLUB OF CHICAGO

Utah Uranium—Data

America

—

Analysis

—

analysis

an
,

Abraham & Co., 120

Beaver

will be held at Nordic Hills Country Club

Also available is

an

SECURITY

Broad

Street, New York 4, N. Y.

randum

Atomic
the

on

&

Also available is

summer

Security Traders Association will hold its
party on June 25, at the Kirtland Country Club.

anal-,
the

Co., 25

COMING

a memo¬

Anthony

Wall Street, New York

Bangor

Securities

Corporation,

In

Wall

35th

South

—

Investment

June

Field

annual

Shore

outing

Thomas

Memorandum

—

Stamrowe Trading Co., 96

Company—Analysis—New York Hanseatic

Corporation, 120 Broadway, New York 5, N. Y.
Central

Vermont

Public

Service

Corp.

—

June

17, 1954

(Minneapolis,

(Cincinnati, O.)

24-25, 1954

Municipal Bond Deal¬
Spring party.

June 25,

Minn.)

(Cleveland, Ohio)

1954

Cleveland Security Traders

Twin City Bond Club 33rd an¬
nual

outing White Bear Yacht
Club
preceded by a cocktail
party June
16 at the Nicollet

sociation annual
the Kirtland

June 18, 1954

Geophysical

Corporation—Analysis—George A. Sea-

right, 115 Broadway, New York 6, N. Y.
De Beers Consolidated Mines

Limited—Review—Golkin & Co.,
61 Broadway, New York 6, N. Y.
Utilities

Eastern

West

&

Associates—Memorandum—Chace, Whiteside,
Winslow, 24 Federal Street, Boston 10, Mass. Also

available is
Eastman

a

memorandum

Kodak

on

Company—Review—Sutro

Broadway, New York 5, N. Y.
Union

Farrington Manufacturing Co.
Bros.

Also available is

&
a

Co.,

120

review of

Pacific Railroad Co.

i

Bond

Club

(New Jersey)

summer

of New

Jersey an¬
the Rock Spring
Club, West Orange, N. J.

June 18, 1954 (New York City)

CHARLOTTE, N. C.—Charles L.
has joined the staff of In¬
Securities
Corporation,
Commercial National Bank Build¬
terstate

ing.

Erich Loser Opens

anniversary

outing at the Echo Lake
Country Club, Westfield, N. J.
22,

1954

(New York

City)

Limited—Analysis—Kippen & Com¬
Inc., 607 St. James Street West, Montreal, Que., Canada.

pany

Falconbridge

Nickel

Mines

Limited—Bulletin—de

Also

available is

a

bulletin

on

Micromatic Hone Corporation.

annual

Club

field

of

at

day

Chicago

Nordic

Hills Country

Club.

June 29, 1954

(Detroit, Mich.)

summer

(Boston, Mass.)

Securities

Traders

As-

outing

,

19th annual

Plum

at

Club

With Cantor,

Hollow

at

the

(Denver, Colo.)
of

Denver-Invest¬

Park

by

preceded

Dinner

Aug.

Jtmuura: J-ecmiltes

(Co., TUX.

On the Press

Member

Revised Edition of—

N.A.S.D.

12

at

Hill
a

the

Jerome
the

Material and Consnltation

Japanese Stocks and Bonds

Troster, Singer & Co.
74

Trinity Place, New York 6, N. Y.




been

added

to

Cantor, Fitzgerald &

Co., Inc., 232 North Canon Drive.

Country

Calcutta
Albany

Bond Club of Chi¬
annual outing at Knollwood
Country Club, Lake Forest, 111. "
Municipal

cago

without

(Philadelphia, Pa.)

Bond Club of

ton

2400

HILLS, ' Calif.—
has

'"Of

/lp?

Philadelphia 29th

annual field day at

on

.

Members: N. Y. Security Dealers Association

of

Broker and Dealer

Industry and the Atom

2-

Zonis

staff

Sept. 10, 1954 (Chicago, III.)

Sept. 17, 1954

HA

Fitzgerald

(Special to The Financial Chronicle)

ment Bankers Association summer
frolic

Chronicle)

III.—John W. Rowe,
Jr., has joined the staff of Negley,
Jens & Rowe, of Jefferson Build¬
ing.
.
PEORIA,

Hotel.

Dealers only

Street, New York

Negley, Jens Adds

BEVERLY

13, 1954

Club,

For Banks, Brokers &

a

City.

Golf Club.

Aug.

1954

24,

Boston

conducting

Association

Traders

of Detroit & Michigan

Bond

June

is

235 West 102nd

Winged Foot Club, Mamaro-

neck, N. Y.

Con-

Organization, 100 Broadway, New York 5, N. Y.

klin

Witt

the

Loser

securities business from offices at

(Special to The Financial

Securities
New York Stock Exchange Golf

Erich

(Chicago, 111.)

Traders

and

June

the
of

N. J.
June 26, 1954

28th

Association annual tournament at

Falconbridge Nickel Mines

City)

Bondwomen's Club
annual outing at
Spring Club, West Orange,

Bond

5th

score

a

party at

York

New

Rock

nual field day at

"Syndicats"

received

with

As¬

Municipal
of

—

Josephthal & Co., 120 Broadway, New York 5, N. Y.
Century

Cup

Green

Country Club.

June 25, 1954 (New York

Hotel. *

Memorandum

Hickey

With Interstate Sees.

—

Central Indiana Gas

are

>

Club,

Country

5, N. Y.

Street, New York 5, N. Y.

Brown,
Both

of 83.

at

Cincinnati
ers

New York 5, N. Y.

Beryllium Corp.

score

(Special to The Financial Chronicle)

37

Aroostook—Analysis—Vilas & Hickey, 49 Wall St.,

&

a

President's

Hingham, Mass.

EVENTS

Uranium—Comprehensive study covering

uranium—James

Harold

15.

Kiernan & Co., was sec¬

ond with

Missouri Pacific Co.

Energy and

June

Brown,

78-

present situation and future possibilities of atomic energy

and

held

Club.
annual

sociation

Gas Co.—Memorandum—Hirsch

Exchange Five and Twenty Club

members of the Five and Twenty

TRADERS ASSOCIATION

ysis of Rich's Inc. and the White Motor Company.
Arkansas Louisiana

on

Cleveland

The

Street, New York 4, N. Y.

Chi¬

Saturday, June
26, 1954. Plans for the day are under the direction of Joseph T.
Fuller, William A Fuller & Company, Chairman.
CLEVELAND

Tcurnamenl Winners
Henry C. Hagen, with a score
of 81, was winner of the Chairman
of the Board's trophy, at the golf
tournament of the American Stock

The 27th Annual Field Day of the Bond Traders Club of
cago

Broadway, New York 5, N. Y.
Anheuser-Busch, Incorporated—Analysis—H. Hentz & Co., 60

Fund

Group of

outing on Aug. 13 at the Park Hill Country Club. The outing will
be preceded by a Calcutta Dinner Thursday, Aug. 12, at the Albany

Earnings—Analysis of production and quality

No.

York

(bul¬
169)—Smith, Barney & Co., 14 Wall Street, New

the

of

the executive com¬

on

American Exch. Golf

i

.

The Bond Club of Denver and the Rocky Mountain

ysis of American Viscose Corporation.
Railroad

and

mittee.

—

Street, New York 5, N. Y.

a

elected

has been

Co.,

Vice-Chairman

as

board

Thomson & McKinnon,
Also available is an anal¬

Special report

—

Lewis,

firm of Bear

of Directors. He will serve

Board

Notes

NSTA

Y.

Outlook

Petroleum

an

&

The Greater New York Fund's

to

up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
showing

Over-the-Counter Index—Folder

,

Firms

Exchange

pany.

chemical

on

S.

R.

—

Nov.

Inc.—Analysis—First California Company, In¬
corporated, 300 Montgomery Street, San Francisco 20, Calif.
Also available is an analysis of Permanente Cement Com¬

Co.,

&

Gundy

W.

Stock

of

meeting.

City 1, Utah.

Lucky
Canadian

tion

Gorey Co., Russ Building, San Francisco 4, Calif.

B American Machine.

&

.

Board of Governors of Associa¬

Underwriters, Inc.—Memorandum—Wal¬

Las Vegas Grammar School

mentioned will he pleased
interested parties the following literature:

understood that the firms

It is

-Minn.)

■

Hycon—Literature—Singer, Bean & Mackie, Inc., 40 Exchange
Place, New York 5, N. Y. Also available is literature on

Recommendations & Literature

(Minneapolis

1954

23-25,

Sept.

Signal—Analysis—Peter P. McDermott & Co.,

Street, New York 5, N. Y. i.

Great American Life

Dealer-Broker Investment

of

Chronicle... Thursday, June 17, 1954

The Commercial and Financial

(2660)

the Hunting¬

Valley Country Club, Abing-

ton, Pa.

obligation
Sept. 22-26, 1954 (Atlantic City)

NT 1376

61

Broadway, New York 6, N. Y.
Tel.:

BOwling Green 9-0187
Head

Office

Tokyo

National Security Traders Asso¬
ciation Annual Convention at the

Hotel Claridge.

i

'

t.

Number 5334... The Commercial and Financial Chronicle

Volume 179

The

cation, and incentives to produce.
They need to share in the results

upon

of efficient production. They need
remuneration
for thrift and for

banks.

the accumulation of capital. They
need the free play of all those

billion in deposits carried in time

of three listed

accounts

withdrew

constructive

Responsibilities of
Banking Leadership Today

is

By HOMER J. LIVINGSTON*

President,

Bank,

National

First

The

nomic
that

a

plishments and indicates oncoming changes appear to be even

Says all this will require highly competent manage¬
our banks, and gives advice on good bank manage¬
Stresses need of bankers to fully understand the Federal

As

by

world banking and financial prob¬
highest standards in bank leadership.

everywhere today an significant developments in this
realization
that
the generation, and it is the founda¬
world has experienced in recent tion upon which American indus¬
has built the greatest mass
years economic, social, and politi¬ try
markets in history.
cal changes of
Consider what this broadening
far
reaching
-

significance,
In

only

United

the

States,

»

has

class

done

to

few products in the short

a

since

time

the

middle

The

1946.

air-conditioning

output
units

of
has

flow of world

room

events and the

risen from

gigantic

1,000,000 annually; television out¬
put from 6,000 to over 7,000,000
units annually; and the output of

for¬

ward

strides

the

Amer¬

of

ican

farm

economy

30,000 to

home

and

210,000 to

are
compel¬
ling banks and

estimated

an

freezers

estimated

an

our

eco¬

reveals

can

from

1,150,000

units last year.

Uncle

Love

cross

the

Bill

an

ocean

casually

we

ask

will

fly or
In 1952,

Europe.
airplanes

ments have been,
on

single responsiadministering the $68

of

by

68,000,000

sobering

a

these

depositors

greater.

(One is reminded of the
moving-picture producer who said
his company's last picture was not
very good.
He said it was "only
colossal
and
magnificent."
The
next picture would be much bet¬
ter. So we may say that America's
past has only been colossal and
magnificent.
The
future
looks

or

take

you

40-year

a

to

1900

1939,

you

every year one

business

out

concerns

failed, and these fig-

ures do not include some of the
most hazardous retail lines. Of
^be
business failures in Janfew years ago, and when we are uaiT 1954» two-thirds were busistewards for $200-billion in total nesses five years old or less. Dun
bank
deposits, banking requires and Bradstreet reports that the
an even higher level of
leadership
average life of a business is about
Today, also, when the American 66 months. The hazards of busi■

has such

economy

influence

nations,

far-reaching

a

the economies of all

on

when

and

the

United

ness are never small. Obviously,
we must have a basic understandln8 of the financing problems of

business in order to extend credit
soundly.,: We need to be better
Qualified to analyze balance
sheets, profit and loss statements,
the challenges inher-' surplus accounts, and budgets. We
leadership
need to study economic conditions
to world bank-

ing and financial leadership,
banking must be adequate to discharge the responsi-

American

bilities

and

ent in

that

There

is

th6 businesses

irresistible

almost

an

temptation to become romantic in

fUf

T2„+

now

withdrew from operation

that year. If
average from
will find that

/

one.

ture ?f the United States and the
honirir^tf

the horizon appear to be even

seven

9

Today, when even the smallest
banks are large compared to a

develop¬

the changes

in

the

&

Greater Changes Coming
as

bility

carrying

than 1*4 million passengers
entered the United States.

more

Remarkable

Even

States has grown

only

to

86,000

over

"I

see

1935,

as

Today
boat

a

now

week.

every

air.

take

is

the

and

recently

whether

increasing

of

progress.

growth

persons

adventurer would

Reserve System as well as

There

social

40,000,000

Lucy"

for

lems. Calls for

and

television

greater.
ment.

have

get
paid vacations and ' 1,000,000 per¬
sons (excluding servicemen) went
abroad last year. For better or for
worse, 27,000,000 homes now have

dynamic nation, prominent Midwest banker calls
attention to the vastly enlarged economy in which banks are
now functioning.
Gives data on our national economic accom- '

ment

which

extraordinary economic
The amazing record of

Chicago

Asserting that change is the only certainty in the life and enter¬
prise of

factors

the competence and the ability of the leadership in our 15,000

been the mainspring of America's

Vice-President, American Bankers Association

,

(2661)

lot!

hp

in

sioiiities ot
sibilities of

Ssnon earnlnSs assets now is in our bond
leTdrrshirtodav accounts bank at least be Person
that ghould one
in each

Bank
fiVct

to

competent

provide

management
oKoii
shall

T
I

™

make

definite

hkrhiv

highly
for our
attempt

no

responsibility

interest trends

bond market

nrnvi^A

tn

iq

is

assigned

the

studying

Leadership

r0t.nnnc:Kiiitv

lea Herein
leadership
h.nVo
banks.

of

fundamental

bank leadership today.

Requirement of Highly Competent
Tho

35%

over

deports

total bank
are invested
in United States Government obligations, and almost 10% of the

me

three

terms

average

generThfies^ let
set dep0sits are invested in other se~
sp^ific and practical cunties- So larSe a Part of our

in abstract

down

Q

every

and

day.

for
the

It is as

unwise to be complacent about a
b
d account as ft is to npglGct

S?_ ^

0 ne2lect

FFF+VuL

*he loan portfolio.
We

need

also

to

review

reguIn the future, we here
to
discuss
the
details
of
have over even better.)
stantly to re¬
45,000,000 passenger automobiles, may expect electronic equipment; everyday banking.
I shall deal
new
medicines and the conquest rather with the
examine their
approximately
18,000,000
more
major phases of
Homer J. Livingston
At the risk of
almost three times as large,
than they owned in 1940. In the of disease; jet-propelled passenger our stewardshio
policies
and
and loans were over three and
their objec¬
highway systems oversimplifying this first Zn!
same
period, they increased the planes; great
responone_half timp<, a<5 larfJp a„ fhpv
tives.
It is not an easy task to insurance they own from $115 bil¬ spanning the entire nation; whole
sibility, may I emphasize five
large as they
adjust our thinking to the vast lion to over $304 billion, and sections of our major cities rebuilt significant aspects of bank mantheir total savings rose from $68 and modernized; large expendi¬ agement. First, we are obligated
changes which are today dictating
; d
Banks need still larger
the direction and determining the billion to $250 billion.
In fact, tures for replacing industrial ma¬
accounts for the
development
of
the
American in the last three years, the people chines and equipment; vast out¬
to enlarge school systems, something more than
economy. It is much easier mere¬ have saved at the unusually high lays
a
casual
ly to follow the accepted routines rate of 7.3% of their disposable hospitals, and utilities and also acquaintance with the businesses
H' rnnstLL ?? u S'
and the inherited opinions of the income, compared to 4.5% in the far-reaching changes in our entire and industries we serve if we are
ofthe'
past. But if history teaches any¬ prosperous
1929
period.
These economy that will flow out of to take care of their credit needs
+ulir
atomic energy.
thing, it teaches v that constant vast savings indicate that vast

business

Our

con¬

people

today

Sa^counlrin^sfiepo^ts

SSSta Vff'must fha°VUe aa*ita1'
losses®*
cU^^^Emjalf^imnorbfn^^anka
^^cajf

Our
extraordinary economic
change is the only, certainty in the markets are available in the econ¬
enterprise of a dynamic omy.
progress
has been accompanied
nation.
Whem change stops, the
Consider the striking develop¬ by a substantial growth of the
enterprise and genius of a nation ments in agriculture. Output per banking system. Consider only a
of
the
are dead.
significant figures.
man-hour on American farms to¬ few
From 1939 to 1953, loans of all
If we are to measure the re¬
day is 150% greater than it was
banks increased from $22 to $81
sponsibilities of banking leader¬ only 12 years ago.
An endless
ship today, we need to understand stream of mechanical equipment billion, investments from $28 to
clearly the vastly enlarged econ¬ has moved to the farms. Almost $91 billion, time deposits from
omy
in which banks are now 6,000,000 units of equipment — $25 to $68 billion, capital accounts
functioning. Consider for a mo¬ tractors, motor trucks, grain com¬ from $8 to $16 billion, and total
ment
the
remarkable
changes bines, corn pickers, and milking deposits from $68 to almost $200

life and

have

which

come

United

the

to

machines

States in recent years.

of Accomplishment

we

been

1941.

of

placed

Seventeen

equipment

is

on

bil¬
on

farms—five times as much as

our

The record of American accom¬

have

dollars

lion

A Record

—

since

farms

before

had

we

entered World

War II. Today the average Amer¬
plishments is expressed more elo¬
ican farm is worth $30,000, which
quently in statistics than in mere
is equal to $20,000 invested for
words.
In
1953, the disposable
personal
income
(that
is,
in¬ every farm worker, and repre¬
come

billion.

The financial welfare
business

and

every

of

individual in

the largest city and

in the smallest
village depends to a great degree

This advertisement is neither

worker in industry. Despite
population

per

was 350% higher, and the
national product (the goods
and services we produce) 400%
greater than in 1939.
Business
expenditures for new plant and

people

a

gross

decrease in the farm

of

Not

a

N'O

businesses

our

middle

number

of

persons

nine

enlarged.
earning,

times more Americans were earn¬

in population.

•An

advance

and in their

16,

Mr. Livingston before
Convention of the Illinois
Association, Chicago, 111., June

address by

Annual

Bankers

1954.

;




J

died.

nesses

orjo

Of

AAA

278,000

over

2.6

estabk.idi
busi¬

million

by Dun and Bradstreet in 1952, approximately one

offer to sell

an

nor a

solicitation of

aadits * able oatside

cHlvS.

Good

con¬

listed

cerns

ISSSSSt5
have competent auditing, then

mana8ement may provide periodic

an

offer

management

Continued

to

buy

any

114,954 Shares

Organ Company

Common Stock
($1 Par Value)

Price

years

Copies of the Prospectus

may

$28

be obtained in

including the undersigned,

as may

per

Share

any state from

such of the Underwriters,

lawfully offer the securities in such state.

However, we need to un¬
that merely adding to

that

<

ards

A, G. Becker & Co.

is no
economic progress
population

East

of

have

the

lowest

An
population is not
enough. Men need freedom, edu¬

Lee Higginson

Union Securities Corporation

stand¬

living in the world.

increasing

Hornblower &. Weeks

Incorporated

Hemphill, Noyes & Co.

June 15,1954

on page

of these securities.

offering is made only by the Prospectus,

Hammond

makes

im-

Perative at least one other re-

derstand
our

Far

the

and

than

From

guaranty
will con¬
tinue, nor does it assure us that
standards of living. The substan¬
standards of living will rise. The
tial increase in the size of the
heavily populated nations of the
middle class is one of the most
remarkable

ntnJ

lished,

population

tered.

ing $5,000, and over, in 1952 than
in
1941.
The
American people
a

more

323,OOtTnew businesses were

in recent years than

of Canada.
In
since 1950, our
population has increased more
than
9,000,000 persons, and by
1960 may reach 175,000,000. Month
after month, we add a population
equal to a city of 250,000 to be
clothed, fed, educated, and shel¬
total

from $2,000 to $5,000,
over,
has been
increased
many times.
For example, nine

had

In the first

1952

of

Tne/cZble^n

to

only three

annually,

in their real incomes

months

fv^tlmk3"^ C°ntro1
system ln every bank. Poor ac-

mately one and one-half times the

class,

and

have

im-

o/busi-

1950, our population in¬
creased almost 20,000,000, approxi¬

which so much of the eco¬
nomic progress of the nation de¬
The

increase

1940

upon

pends, has been greatly

economy

the

1939.

American

heint»

without

operation is intense.

No factor has had a more pro¬

The

sta-

for" MS TdP^VeprSo«

found influence on the growth of

-

vital

persons

upsurge.

since

the

stndv

ran

pressed with the hazards

a

creasing

While population was in¬
22%
and employment
35%, the gross national product,
after eliminating the effects of in¬
flation,
increased almost 100%

one

tistics of the births and deaths of

Which wishes to grow

^owingS businSses^musfhare'a
^7 management also neces^
'. Good

New Issue

since 1940,
very large addition to our
total population, the agricultural
industry has increased production
equipment rose over 500%, and
and has given
all of us much
expenditures for public utilities
higher standards of living. Farm¬
rose over 800% compared to 1939.
Income and production have had ing in our time has become big
business.
a dramatic and almost incredible
6,000,000

and

recalling that approximate-

invested in lo ns.^ deP°S"S

The

sents almost twice the investment

after taxes) of the American

every

A.^nk

worth

expand^

Corporation

24

10

(2662)

The Commercial and Financial
Chronicle...

Taxes.

Accomplishments oi New Yoik

These institutions

ding for

Unfortunately,
Savings

By STANLEY A. NEILSON*

continue

Banks

discontinued.

the

joint

the

normal

President, Bank of Gowanda, Gowanda, N. Y.

believe

study

I

Ahead

own

to

can

be

drained from the

spending stream.
into the mutuals without affecting I.
the national economy?
What will r

ing past

be the eventual effect of unsound;

Comments

tough competition from Federal

on

lending agencies and inroads of mutual savings banks.
informed public and an informed

an

As

•

I

to

come

the

end

of

my

two

administration, I cannot help but

Group

feel proud of the
accomplishments
of this past year.
I am

Chairmen

saying

much

banking fraternity.

Group

outward

greater rate than

mercial

and
on

A1

Muench

and
I

his

am

Other

constitution

staff.

which

proud of

the Council of
I

n.

proud
-C

well

the

the

their

I

is

consider

successful year.

You

a

man

to

even

take

on

That spirit can't help but
any Association successful.

make
•

I have always felt that the New
York State Bankers Association

is and
State

should

be

the

Association

in

outstanding

of

the

Currency Com¬

Senate.

New

York

State

Law

the

You all

which

country.

remember the

ciation

in

bulletins

in

used

were

many

at

Mid-Winter

our

to

from

one

Groups,
elected

who
for

a

each

will
term

of

the

world

are

are

unbalanced

na¬

ployees,

years

year.

In

addition, there will

be

serious

very

and

the

•Presidential address of Mr. Neilson
58th

at

Annual

Meeting of the New"
York
State
Bankers
Association, Lake
Placid
Club, Lake Placid,
New
York,
June 4,

1954.

The

commercial

of

voters

We have been very

obtaining

Bill

several

Director,

bank¬

those

I

am

proud to be

banker and

I

during the past

more

spending,
exemptions
and

we

as

We must

not

individuals
munities.

in

We are,

tions
either

savings
and

fully

It

com¬

however, faced

loan

associa¬

unions

Federal

are

a

a

success.

in

the

commercial
our

fine

Although

lot

a

of work

not

arouse

any¬

been

done

the

on

Republicans

who

not

are

considered

a

the*

of

part

nuisance.'

a

not

American

politics;

Herbert Hoover had

do

I beg that

year.

cooperation
officers, so that"

anything to

for going along with him.

or

Penington,' Colket
New

.

his

well become

Stock

become

a

limited

firm

They

for Eisenhower,

are

for what

and what he does. They are for his "dynamic"
program which
has

said

right to be in

no

the

if

Republicans

various pieces of it.
as

partner.

support

they

has taken its support of

and campaigning for his

the

program,

Their influence has been felt in such matters

the so-called St. Lawrence
Seaway which Mr. Eisenhower made
"must"

a

don't

power.

Interestingly enough, the Committee

will

*

he

Eisenhower

the President to lobbying

July 1 W. Lippincott Colket,
the

Committee.

Citizens

have

manager of the firm's
investment planning department.

partner in

formidable political

Mr.

is

general

a

says

tion.

offer to sell or a solicitation of en offer to
buy these securities.
This offering is nurd
only by the Prospectus.

his program, and

on

As I

for the President's housing legisla¬

understand it, the Committee has

to

analyze

the

various

pieces

of

down that the President is for this

no

study

or

legislation.
or

research

The

word

that, against this

or

that and the Committee goes to work with that zeal
characteristic
of

to

newcomers

practical

sense

a

politics.

The

of doing something, of

game

and

action.

And when

He

merce.

Company

was

didn't

get

victory

just the right

the

job

Undersecretary of Commerce.
the

over

to

with

Mortgage Bonds, Series F,

Congress.

White

came

House

to

However,

did

From
be

he

he lost

the

seems

land

no

a

man

of energy

time in letting it

as

second

man,

this post he quickly
President's
now

sight, to be quietly back at Commerce.

them,

to be Secretary of Com¬

man

but

fascinates

accomplishing something.

Their co-Chairman in the '52 campaign was

/

be known that he

to

chief

have

'

.

as

moved:

spokesman

dropped from

'

June 1, 1984

Joins King Merritt

Price 102.25% and accrued interest

(Special

WEST

o

r„

&

With

to The Financial Chronicle)

PLAINS, Mo.—James L.

Bozman is

may

largely take

disadvantage of the Republican party. Mr. Eisenhower
has repeatedly said that he is not a
party pastisan and neither is

Exchange, will admit Jesse A. de
Camp and Edmund Brown, Jr., to
partnership as of July
1.
Mr.

Due

The CIO-PAC

force to the

&
Co., 70
York
City,

members of the New York

Dated June 1, 1954

v

.

very

On

'

In the nature of the current
political situation the Eisenhower
Citizens Committee might

Peninglon, Colket to

Brown

'

They didn't try to
Republican members of Congress for not

for

or

the Democratic party.

over

and Nation.

Street,

exactly

Hoover, however,

threw its weight all over the
political field and it did

may accomplish
much for the welfare of our State

Pine

not

large body of

question of his followers taking over the Republican

no

going along with him

that

new

was

With

an

Copies of 'he Prospectus

are
a

party, and they confined their devotion to him.

Association

our

Central Illinois Public Service

with

now

King Merritt

(Special

to

Burns, Potter
The

Financial

Chronicle)

OMAHA, Neb.—Kenneth

Jones

*s n°w affiliated with Burns, Potter & Company, 212 South Seven-

Trin

Co' lnc*

teenth Street.

be obtained from the undersigned.

With Dean Witter & Co.
(Special to The

HALSEY, STUART

SAN

& CO. INC.

Financial

Chronicle)

FRANCISCO,

Calif.—

Durfee L. Combs has become
nected




has

aggressive support of the CIO-PAC.

there

deeply grate¬
splendid cooperation

your

all

Income

$5,000,000

June 16[ 1954

could

Personal -political organizations of this kind

am

continue

do¬

for the most part

or

from

and

Admit Two Partners
are

various

and

credit

your

with

?

with tough competition.
Over 40
Federal lending agencies,

banks,

for

you

pol¬
by fiscal

banks

our

r

bankers must
lose

commercial

each

member of

a

Association.

ministration

for

but

gives them

First

having delivered millions of
'52.

White House team that the committee could be
quite

Educa¬

comes

is

for
in

cause

the

groups
announcement

credit

.

ful

exempt

This

takes

Eisenhower

states.

part of
as

the

to

organization it is doubtful if it is organized down to the
Congres¬
sional district level.
Nevertheless, there is a realization on

fortunate in

Green

strong party ties, the problem

thing like that number for Cpngressional candidates and, of
course,
its strength varies in the 435
Congressional districts and in the

and

:

.

committee

to

em¬

public, through service clubs,
teacher
organizations,

outlook is not bright.
Much pres¬
sure is being brought on the Ad¬

savings

tlie

stockholders

your

community
ing.

the

ing a tremendous job of financing
industry, business, agriculture and

with three to be elected each
year'
Tor two years and four the third

your

no

become quite embarrassing.

organized personal followers and Roosevelt and Truman both" had

we

Conditions in

an

budget.

The

be

educate

Bargeron

the Foundation is to be

still faced with

halted,

bankruptcy at home.

other

eventually
of three

to

you

you

and

wages

Carlisle

of

hew

and I believe

large, three from Group Eight

camoaign devel¬
will be faced with this problem and in
the fact that its
membership is com¬

ops it

view

safe¬

candidates

the

tional

inflation

icy.

and

Democratic
as

every one of us must do our part
in
spreading the information if

the

Executive Committee.
at

and

deposits; to enable

reasonable

pay

enable

stand fast on sound financial

mittee will consist of 10 members

support
instances but

ary period.
While
has been presently

Itfeeting, will become part of the
That Com¬

would

other states during that inflation¬

our

voted

it

some

may

earnings

Re¬

over

yet

that
in

posed mostly of persons with

support of sound fiscal

policy which

first aims was to
raising tax
provide continuity to Association further extension of social wel¬
policy.
To that end I appointed* fare which would add
many more
the State Policy Committee
which,; billions to the Government deficit.
Y/ith the change iq our constitu¬
We are engaged
in a cold war
tion

An in¬

schools, farm organizations, and
what-not, on the value to every

put out by the Asso¬

were

veto

a

not been so warm
their support of the Administration or who
have been openly in opposition.
There has
been no suggestion from the committee as

in

parent

Danger of Federal Deficit

-

publicans who either have

my

necessary

your

an

with

the President and his entou¬

something approaching

rage

crease

your

tional

After all, we have about one-third
■of the country's finances in the
Empire State.
One

also

Commission and filed a
brief opposing the adoption of the

very

all very

are

not one single
hesitated when asked

job.

the

of

and

we

but believe me, gentle¬

men,

a

Board

are

it

.

to the fu¬
ture of our industry. We hope to
assist you in the know-how to in¬

Uniform Commercial Code.

what I

men,

Bank

bankers

'

views

forthcoming Congressional campaigns.

public is absolutly neces¬
sary to the future of our country.
I
might say, too, that informed

the

Revision

splendid

busy

on

We also appeared last week be¬

fore

Stanley A. Neilson

cooperation of all of you that
have had

briefs

cooperation,
"
'

was

This could give

have

we

undertaken.

cf

been revived to elect
supporters of Eisenhower
in the

mind is one
important activities

ever

show

.

welcomed in the 1952
campaign as
necessary adjunct for victory. But it has

a

formed

guard your

fr

through

the

filed

the. Banking and

our

it

and

to

most

have

we

It

Program

least,

out leud, and though it maintains

so

apprehension.

Educational Foun¬

our

This

the

a

we

Loan

mittee

Association,
because

dation.

as

of Federal Savings and
branches at hearings of the

Home

am

only

organized

extension

proud of every
member of

take

legislation

•

questions.

And last but not

of

should

we

Federal

these

Educational

Association.

State, and to that end

as

Loan

com¬

mittees.

our

of

some

made in the

by-laws, all of
will improve the

that

on

to

and

hope

appeared

i t tee

Chairmen and
th e members
df

feel

I

stand

am

of

o m m

I

were

administration of

Administratio

changes

com-

believe that for

banks, I

Committee.

proud of

the

the
general public welfare, we
should endeavor to find answers,

two

Representatives

In these days when there seem to
be an unusual number of
"movements" organized by men of
energy seeking to make themselves heard and to wield
influence, the Citizens for Eisenhower
Committee affords an interesting
study. The Republican National
Committee, though it would never be heard

mortgage loans?
Since these in- "
stitutions have been growing at ai

Calls

attention to Association's Educational Foundation to
promote

of the News

By CARLISLE BARGERON

Speaking as outgoing President of the New York State Bank¬
ers Association, Mr. Neibon
points out accomplishments dur¬
year.

Washington

hope it

mucii

how

soon,

our

return

we

and

From

was

should

we

in

When

conditions,

be

may

study

with the

Association

I

Association..

Retiring: President, New York State Bankers Association

bid¬

are

deposits.

our

of the financial situation

State Bankers Association

Thursday, June 17, 1954

45

of

with

Dean

Montgomery
the

N£w

Witter

Street,

York

and

(Special to The Financial Chronicle)

LOS

ANGELES, Calif. —James

con¬

W. Anderson and William H.
Cies

Co.,

have become affiliated with Mor¬

members

San

cisco Stock Exchanges."

&

Two Join Morgan Staff

Fran¬

gan &

Co., 634 South Spring Street,

members of the Los
Angeles Stock

Exchange.

.Volume 179

Number 5334...The Commercial and Financial

"!

Chronicle

11

(2663)

More

Foreign Bonds Paying Interest

Nadler, in Bulletin of
University Institute of International Research,
estimate more than 73% of publicly offered
foreign dollar
bonds met debt service in full in 1953,
compared with 70%

V

full

dian bonds

paid in

$3,277,168,303, or 73.16%,
$4,479,918,914 of pub¬

on

caused

number

of the total

licly offered foreign dollar bonds

tional

,

by the sale of

of

and

Bank

for

lines plan for safe

Reconstruction

Development of

issue

an

principal amount of $75,000,000. Thus, owing to the assent of

amount

has been reduced from

the

at

end

of

1952

to

of

■

38.18%

$76,361,300

face

amount

of

"

jSpjjf'i|.

$10,946,200

unassented

'

Collins

Rowland

G.

outstanding

on

cording

a

to

"Statistical

Offered

Marcus

-A

Analysis

Dean

of

Sept. 1, 1953, and

Publicly

Dollar

G. Rowland

treated

Director,
and
Dr.
Marcus
Nadler, Research Director of the
New

The

York

assented

to

the

Status of Publicly

have

been

with

and

Data

debt-service
resumption
plans, to the net increase of over
$182,500,000 in outstanding Cana¬

the

on

Dec.

of

as

or

buy

some

Validation

$11,005,600

status

of

31,

$3,022.8

70.36%

1,198.7

27.90

74.5

1.74

condemn

73.16%

parking
1,143.4

a

4
l

cer-

jn

would

V-

lots

adjoining

move

to

every

now

can

the

parking

by

lots

women.
•
:
'

of

the

big

:

•

*

in

*

com-

place

of

do

the

by

walking

directly to her

fear

of

and

of

one

under

cross

car

being hit by
on
the main
said

tun¬
main

If she wished to stop at
super
stores on the

the

other side

of the street she could

do

she

so,

or

could

the

reverse

above process.
■

Frederick Terry With

Hamlin & Lunt in N. Y.
Frederick A. Terry has- become
associated with Hamlin & Lunt,' 2

Terry & Company.

Kenneth

.

for

tend

The

making a great mislonger they wait, the

the

needed

about

Spear to

new

which could be about five to eight
miles apart.
This land will ex-

are

property

register,

canopy

no

highway.

shopping centers as now laid out,: we will.find
that foul. or more iarge stores_

take.

1.32

then

out

go

.

Looking Into the Future

a

do not buy or

needed

would

being driven

are

a

property

cash

with

nel

exceed

■».

parking

shopping centers

more

25.52

59.3

'

not

any

are being built longer and fancier Wall Street, New York City. Mr.
every year. Yet, 85% of the cars Terry was formerly a partner of

...

Cities which

.

Principal

long,

ing facilities.

Per Cent

$3,277.2

does

areas

of

protective

a

any
car
traveling
highway, would drive to the

these

.

-December 31. I "53—
Millions

before

out

subject
in

every day.
Power
steering is almost necessary for a

a

mumty will witness

pub¬

Foreign Dollar Bonds '*
—

speed

such as an A&p
Grocery, a Penlarge turnney clothing Store, a Super Drug
over oi business
property during store and a
Woolworth. McCrorv.
the next tew years. Some of this
or
McLenan Variety - Store-will
will sell at higher prices, while
unite
to
buy some acreage on
other business property will sell
both sides 0f a main
highway, lo¬
ot lower prices, according to
park- cated
midway between two cities

-

,

all

1952 and

Per Cent

near

likewise

.

main

jammed

are

municipal parking
As many merchants will feel

Jot.

of

-

else I would

or

location

1953, are
summarized in the following table;

Millions

Paid in Full—
In Default in Regard to:
Interest

for

licly offered foreign dollar bonds

Offered

Debt Service

registered
the

only

-—December '1, 1

Sinking Fund

.

easily,

Board

various

?.*.■-

frt

store,

tainly

immediately

in default

as

bonds have been validated.

growing

bonds

of

study

not

are

as

front

She would then back her

car.

some women

become too big. Too
many fenders

u^

puper

property to enable my customers
to
park:': their
cars
safely and

validation

in

proportion of
bonds serviced in full from 70.36%
in 1952 was due to the
number

in this

danger,

Furthermore,

Markets,

during 1953. As of Dec. 31, 1953,
$77,227,300 principal amount* of

Finance

University,

increase

■

-

customer

or

at 70 miles per hour.

'

,

communities

this

downtown

£ jSt J

Roger w. Babson

are

to

big

bonds

Institute of International

j

.

J

on

validated

issues,«all bonds

the

in

under

shopping and

under 'the

in

variety stores WOman to enjoy * a large parking
ajja. .Shopping. i0t.- This is especially true as cars

f
..

Oct. 6, 1953,

on

exchange

bonds of six

Col¬

lins,

of

to

of

Su-

stores,

store

The

are

con-

%^er

•

directly

canopy.

her

25 miles per hour, while cars
pass
the exits of the
shopping centers

.per

•

-

offered

Bonds,"

from

that

so

main

at the right and park angle-

super

our

the

stores

>

t

Agreement of. Feb. 27, 1953, insti¬
procedure

them

get

foot

this

highway, to these four
stores would leave the high¬

wise

parking; a n d
(3) the trend

J

and

$17,012,000 to $7,Although Germany, un¬

tuted the validation

of

customers

,

main

way

toward

der the terms of the London Debt

31, 1953, ac¬
bulletin entitled

Foreign

issued by

Nadler

Dec.

while

out

thoroughfare,

..automobile
,

from

909,500.

out

f

o

g e s t i o n

defaulted Peruvian bonds has de¬
creased

this

super

(2)

•

during 1953
38.57%; and the

to

.

already becoming afraid of
using
them.
Municipal parking
lots in the downtown centers of

trociuction

.

bonds

Plan A has increased

-from

'

-

Dec.* 31, 1953; the percentage
Brazilian ;bonds
assented
to

on

,

"self-service";

-

plan, the prin¬

defaulted

of

r

checking
dents

.

bondholders to the Japanese debt-

cipal

,

parking facilities.

A" revaluation is
going on in
merchandising. This will affect
shopkeepers in many ways.
The
change will be due to: (1) The in-

in

the

service resumption

By ROGER W. BABSON

.

discussing development of suburban shopping centers, Mr. '
Babson stresses importance, of parking space. Says cities
which do not buy
property needed for parking facilities make
a
great mistake, and points out municipal
parking lots in down¬
town trading centers would be safer
and more convenient than
establishing new shopping centers with big parking lots. Out¬

new
issues by the
provinces and municipalities, and
to the flotation by the Interna¬
a

•

and

cars

cross

highway easily and quickly with¬
out
accident. Thus,
a
customer
leaving home to travel west, on

In

in 1952.
was

to

passengers

the New York

In 1953 debt service

enabling

overpass,

Dean Rowland Collins and Dr. Marcus

2,000

feet

Celebrate June 13
Kenneth

Spear,

Vice-President,

of Julius A. Rippel, Inc., Newark,
will celebrate his birthday, June

18, at the outing of the Bond Club
New Jersey.
Mr. Spear has

of

been
for
on

with

the

Julius

past

the

15

Qreat

A.

Rippel, Inpj,
Yachting

years.

South

Bay

is

hiB

favorite sport; he is a member of

Bellport Bay Yacht Club.

along said

main'highway, giving angle parking for from 250 to 500

will

This

cost.

angie

Julius A.

cars,

parking;

however,
highway land. The

Rippel to

Municipal., governments will not be 0n
Total
$4,296.0
100.00%
$4,479.9
100.00% which are delaying this work bebuiidings will be 50 feet back of
cause
some
influential family or
the street line,
Julius A. Rippel, President
On Dec. 31, 1953, European and Latin
allowing parking
of
America
accounted
for obstinate church objects are hanand safe backing out on private Julius A.
Rippel, Inc., Newark,,
Latin-American obligors ac¬ 12.3% of total defaulted
bonds, dicapping most of the merchants
The buildings will be New Jersey, will attend the re¬
property.
counted
for
98.6% of defaulted as compared with 10.6% on Dec. and are
driving trade away. Own- long and narrow.
instead of be- union at Dartmouth and a meet¬
bonds.
Of the total Latin-Amer¬ 31, 1952.
Europe's percentage in- ers of all business real estate will
jng 200 feet square, as at present, ing of the Alumni Council.
ican bonds in default, Bolivia and creased from
]]
82.6% at the end of suffer. Yet,- these merchants are

Attend Reunion

v

Mexico

accounted

26.54%,

respectively,

man

for

42.18

and

while

European

defaulted

of

.86.3%

Far

end

bonds.

The Rise in

to

The

Ger¬

issues represented 66.38%

total

1952

East

1.4%

1953. 'the

31,

accounted

1953 for

of

Dec.

on

the

at

of total

Bureau

of

^lf^blciod of every

What About

de¬

faulted bonds.

one

of

the

largest

Research

finds.

Concludes

labor

to

Jnited

what

States

over

in

1953

in

was

the

some¬

$5,000, Solomon Fabri-

ant said in his Annual

Report

as

Director

0

f

Research

o

f

the

National

Bureau

of

Economic

This

represents
fourfold

of

come

son

n

-

family in¬

years

The

a

i

from

crease

the

80
ago.

compari¬
takes

ac¬

count of

Dr.

?al
se
er

as

S. Fabricant

subject to acci-

price
changes,
so
that
the. fig¬
ures represent

other age
Fabricant said.
any

Dr.

more

This announcement is not

in

still

higher rate of increase

found

States

prised within the 80
If
per

the

rate

same

also
can

a

been about 1.9%

over

this 80-

"A rate of

offer to sell or a solicitation oj an offer to buy these securities,
offering is made only by the Prospectus.

Mortgage Bonds, 3M% Series due 1984

will

ily

expansion in income

capita of 1.9% per annum susover eight decades would,

lined

suspdbt, find little precedent or




1

Dated

June 1, 1954

•

.

:

/

1

80 years, Dr. Fabri¬
out, our grandchildren
enjoying an average fam¬

be

of

*

k

Price
102%,% and accrued interest

about

$25,000 (at
1953 purchasing power)—'a level
now attained
only by the top 1%
or

so

of the nation's

families'."

.

"7

Dr. Fabricant's report summar¬
izes a number of the National Bu¬
reau's recent findings which bear
on the economic
growth and pro¬

The

Mitchell

and

mense

terial
which

Arthur F.

accumulated1

mass

Burns,

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

of tested factual

it

HALSEY, STUART & CO. INC.
THE MILWAUKEE COMPANY
>

im¬

an

ma¬

the subject, analysis of
continues to yield signifion

page

41

■

*!

?

THOMAS & COMPANY

»

MULLANEY, WELLS & COMPANY

on

Continued

-

June 16, 1954.

•
*

Due June 1, 1984

next

income

1

i

in

cant points

gradually

period.

Midwest Stock Exchange. He was
highway will be con-- formerly with Olson, Donnerberg
by a two-way tunnel or & Co. and Slayton & Co., Inc. k/f

main

1

increase

¬

Company,
Mississippi
Valley Building, members of the

years.

of

j

with

be

First

^

&

Jersey Central Power & Light Company

com¬

capita income should continue

for the

;

affiliated

There

periods

some

White

become

na¬

•

during

Overpass

LOUIS, Mo.—John H. Wea

has

$6,000,000
or

periods,

but

United

or

ST.
sels

:

,

an

The

<

rapid increases in

nations for shorter

the

extra
*

••
t

("Special to The Financial Chronicle)

has

ductivity of the nation. The Na¬
purchasing power. The aver¬ tional Bureau has been a pioneer
yearly increase in real income in such studies. Under its former
person in the United States Directors of Research, Wesley C*."

ear

er

tion,"

have been
other

Re¬

search.

in

parallel

be

,

Private Tunnel

price of capital having favored them.v

family income

also

With White & Co.
"

500

I forecast that the two sides of

near.

nected

are

will

.

ficulty.

from rise in national productivity than have recip¬
ients of property incomes, in two
ways: from fruits of econ¬
omy's increased efficiency, and from price of its work relative

Average

There

cars.

.over

land for Saturday parking.

the

more

Economic

centers

for angle parking of

Boston is already in financial dif-

They

but

feet along the street, thus allowing

V

The new shopping centers with
big central parking lots, which are
being written up with great glee,
may be only a stopgap. I hear that

Family Incame

Same area,

will be only 40 feet deep and 1,000

Shopping Centers?

,

Average family income in United States is over $5,000, repre¬
senting a four-fold increase from 80 years ago, after taking
into account price changes, Solomon Fabricant of the National
gained

j^ey wjp have the

*•'

12

The Commercial and Financial

(2664)

ChronicleThursday, June 17,1954
:-r

industrial
for the rail

THE MARKET... AND YOU
With

At

railroad i sharesre-

and .five
quiet

was a

steady prodding for the

market and

accomplished

was

leased property:been

time' now,*and

more

prominence in this

reaching

in

.

covering all of the ground lost

building materials took turns, -X'On
V
with

the

stiff

shakeout

of /

oils

steels

and
■' ;•

i

j

i.-.

.

top

as

.

■

on

to reach

a

what

•

of-

was

The House Commerce

news.

Committee

approved

-

" bill

a

an-

a

still

distance shy

short

a

of

making up its 12-point twopost-selloff
day average setback.
list would

rest

To the technicians this sit¬ while and then

uation, wherein the rails have
attained
two

points

needed for the

are

cials had to step in to
In the four

the

since

In¬

week.

testing not the lows but

ket

showings of strength,
other

much

ffor

wasn't

small gain. It

a

able to hold this

equal

to

average

(and

highs

recent

the

be called
—that

strong bullish sign

a

if

is,

has

the

by

complished

been
;

carrier

which meant
12

group.

On

Sikorsky Aircraft Division
Aircraft
Corporation

United

that

announced

has

onstrated

has

dem¬

anti-submarine

new

a

it

269

seven-eighths

ing

of

and

would

exchanged

be

preferred

XHSS-1 has

stock of the new company.

a

more

powerful

en¬

previous models and
sonar
equipment which

contains

be lowered into the water to

can

Other

submarines.

detect

announcements

by

the

recent

company

include

plans for a 97,000 square
foot building to be constructed in
Windsor to house work

South

on

the development of an atomic en¬
ergy
one

aircraft engine. On July 1
share of Chance Vought Air¬

craft, Inc. will be distributed for
three shares of United Air¬

each

craft

owned

common

of

as

May

In this way the entire 1,079,-

28.

*

*

than

gine

247

were

out of
During June The Connecticut
Light and Power Company plans
to raise approximately $17 million
through sale of new preferred and
common stock.
On about June 17

nounced

office
at

tract

268-acre

a

has

an¬

its new home
be constructed

plans for

building to

estimated cost of

an

on

Company

in

Bloomfield.

Niles

-

Bement

has received

a

*

-

Pond

Company

certificate of

neces¬

the office of Defense
Mobilization, permitting the com¬
pany to amortize over a five-year
period 65% of the $676,076 cost of
purchasing new machine tools for
the main plant in West Hartford.
sity

from

ers

of

record June

will be of¬

1

rights to; purchase one new
share for each 10 owned at a price

fered

of $14 a share.

in

used

'^pall;

on

The rights will be

writer

Company

Royal
and

Company will meet
vote

two

of

on

Type¬
McBee

July

1

to

a proposed merger of the
companies to form a new

on

strength.

*

*

*

completing plans to

its elec¬

move

in

Norwalk

a

a

was

in

early August and
Norwalk

positions

tors

price

have

declared

holders of the
no

on

week

the
during
The direc¬

$10
stock

new

selling

&

was

CO.

Exchange

CONNECTICUT

now

*

New York

Hartford

—

—

perf0rmance

a

»\ »•>

•

eral

Midas touch

trolled:

An

Mr.

for here

—

Central

by

listed

was

gen-

of

average

was

4%

up

are

Mr.

con-

now

?%• So far in 1954 the

found doing 30% better

than the (1,0221 average,

showing
value

as

gain of 21 % in

a

against 16% for huge

composite. U. S. Gypsuni'and
Johns-Manville have been the
feel the recent favorites in this group,

might be

would

get

than

payment

group

the

Young,

New York & Harlem

for

Stock Exchange

shares eased some

people in common

traders who believe,

that with

market.

that

Young is endowed with the 's

some

which

siigbtiy better than the

feel

*

a

now

-

A

*

newcomer

*
ranks

the

to

provided under the long-term 0f wide-stepping oils is Midlease with Central.
Union Pacific

Continent

was

tricks,

again

in

some-

with

consort

which

week, Friday in spurting

this

bouncing about wildly
times

Pete,

gar-

to its nered a lot of attention last

up

other

AP

on

Tues¬

average

-

in

than

more

two

years.

'{

'

role

of

the
a

At

$125 the 60-stock

age

is $2.90

only

70

seven

points

more

than

has

been

and

stepping out in fair manner

the lost

gain effected

of

some

•

_

low

which

,

on

highest mark reached

the

some

five

points to its value

without much effort.

*

move

Young's

Line

to

success¬

market

and

shooting

developed
on

a

Tuesday

Seaboard Air

to

two

up

Santa

Fe

and

of

activity in the

Line

in

the

_

Dow-Jones

shares* of that road and' in' a road average was

i

expressed

in

thig

Chronicle They are presented as

those of the author only.}

Ed. K.

Young, Jr. Willi
K.

Young,

Jr.

is

now

associated with Wm. E. Pollock &

Ca>

InC)

2o

Pine

Street,

New

Line Sales Department,

.,

waves

views

three

Atlantic Coast.

_

two

[The

.V

Fe, Atlantic Coast York City, in their Institutional

gain control of points. Inclusion of both

New York Central stirred up

over-

article do not necessarily at any

Edward

The rail group

with Santa
*

Robert R.

of

Wm. E. Pollock & Co.

since strong

25, 1929.

because

Tuesday adding

cents

was

favor

production fears.-

jumps of time Coincide with those of the

on

point each trade. It erupted

from the peak touched

two weeks ago,

ful

on

titanium

and

again

above the

is

oil

points with

aver¬

point reached in last week's
and

it took

as

an

prospector. On Friday it ran

*

*

*

*

JAckson 7-2669

pendently

up seven

''

REctor 2-9377

Teletype NH 194

highest
The

of 60 stocks

New Haven
''

Building Stocks
The

1,022

of

daily gain recorded by that

Oct.
-

Continuing Popularity of

some

Street

within

day spurted $1.70, the biggest

away

CHAS.W. SCRANTON

•

the

1929.

*

'

jn 2953 while the average
*

Apparently

re¬

par

April 15,1954.

Members New York Stock

of

since

quarterly

a

par

has

stands

and

shadow

the

mark

average

dividend of 50 cents plus an extra
of 25 cents, both payable on June
30 to

last

,

stock to employees at the

April, 1954.

basis

as a

setback

full

the

covered

of J the

some

railroads and sometimes inde- since. For awhile the oils had

employees.

bid

used

already

in

New Britain Machine Company
has
offered
5,000 shares of its

month of

market

why

against its 1953 building stocks

as

*

old

New Britain will be available for
all

the

be

Press

Associated

the

first

the

in

the

high for

new

wide mover,

stockholders

If

im7provements

have not been too bad.

This inactive issue

around 480

higher

to

the company's main plant in New
Britain.
The change is expected

If




is

to investor's

t

liquidated. They

V;

Extent of the Recovery

break

ISSW

*

*

averages were

</

'.r.~

The Skinner Chuck Company is

Royal McBee Company. stock. The old
proposed merger calls for split two for one

Primary Markets in

*

|-

the

500,000 for 1954 and 1955.

company,

The

with

connection

show of

late

the disclosure that

heavy interest in

a

points to

the year.

Wall

*

Tuesday's

company's plant addition program,
presently scheduled at about $42,-

average

of

*

that 200,000 shares
In point of volume the re¬
preferred stock, series E, with¬
par value but with a stated
covery period left something
value of $50, will be sold through
underwriters. Common stockhold¬ to be desired, but there was a

common

Stockholders

On

and

of

tric valve division
*

*

453 off and

it is expected

$10,000,000
located

un¬

unchanged.
*

mQre

was

may

out

be

Insurance

253

declined

298

was

liking

popularity of the buildCity real estate, ^.material stocks isn't newTuesday, it spurted almost born This group in 1953 gave

1,139 issues traded 569

were

pire June 30. The proceeds are to

Life

414 up,

advanced,
272

mailed about June 15 and will ex¬

General

off,

by

more.

York

New

30

or

year

monthly operating reports

Central

a

unchanged. On Tuesday peak of 520.

*

publicly owned.

Connecticut

1,137 Issues,

246

up,

there

corresponding

619 shares of Vought will become

The

traded

share of

a

helicopter for use by the Navy.
The
new
helicopter, designated

share for share for

unchanged. Friday's

On Monday this
Royal com¬ changed.
and McBee week with 1,114 issues traded

while
preferred

common,

mon

638

in

exciting

which has

a

What

issues Railroad, the subsidiary

233 off

up,

the carriers' tax bill

$55,000,000

in New York & Harlem

move

1,133

631

with

market
receiv¬

holders of McBee common

new

*

Thursday

traded

Connecticut Brevities
Of

*

crease

quarter than a year ago. It

Subsidiary

:

More
*

and

The

Interest

Big

recovering some

in the Dow-Jones

points

the

(on

clines.

retracing of its steps,

The

ac¬

traded

Board), advances and de¬

Carrying the Ball

Rails

industrials

the

what

confirm

*

*

#

issues

into

forth

one

area).

that to the layman it can penetrating the test

say

; mjght-eventualiy in-

which

major railroads spent 19.9%
vast amount of less for road and
equipment

a

trading, carrying
day and Friday markets last later sessions.
this feat, would be referred to component, within four days
week were almost identical,
of the lashing, successfully
as a double top.-Suffice it to
at least in the matter of total
industrial

railroad retirement taxes and

and

eased to 23 at which level it

generated

The Thurs¬

standoff.

a

pretty;

was

outantjpemng^or.the stock

a 23%

three sessions were

the

Pr

work

of if <^nie^pih 25,00(1^ shares at

selling

Wednesday

and

week ago,
definite

days of recovery

heavy

probably, test Tuesday

top and just stead, here we have the mar¬ and

new

a

quietly for a

last

set

lows

the

of

flush

in o the

agreement

xc. anf»®

-

-

f

the

be

to

was

The rail investor

fered two bits of interesting
'V,-

vote

a

that

on

v?

re-

#

Monday,, when

Central

1954

^ wouW require railroads
good number of the pivotals, and right now it's
nounced
there was
such,a, to pay , $30,000,000 more'next
new, top for the... year; in the prognosticates t h 9 u g h jfc;jt
the railroads that are carry¬
Dow-Jones average, the spot- would do at this juncture.
pile-up of buy orders for
Cen-year in unemployment! and
ing the ball.
:
rlight was on the industrials, There was almost general
a '
e
*
'.-v

week, and going

.

back up toward new highs the
last market is running counter to

top. for

attained

gained date.

-Vv-;.."'X

^

in

?

for fresh

some

and

aircrafts

The

occasions.

that i index

Central has why

top active issue

a

by good leadership, at least on spect this week.

rate,

any

index,

but

By WALLACE STREETE
•*

average

rail-

ihe-reason

Perkins Adds To Staff
T*!

FrNANC^ Chronjic">

BOSTON, Mass.—Howard Smoiar has been added to the staff of

Perkins & Co., Inc., 31 Milk St.

Volume 179

Number 5334... The Commercial and Financial
Chronicle

Why the Export-Import Bank

Financing American Exports
Under Increasing Competition
By A. M. STRONG*

Vice-President,

.

*

,

The

,

Committee

port

faced

are

with

increasing.,, competition
foreign markets. Our allies
enemies

our

pricet
with

credit

and

~

loans

\

the

clared
legislative direction, has been to
finance and facilitate the exportimport trade of the United States,
The policies of the Bank, how-

Export-Im-

Washington,

gave

commercial .banks

of

to

handle

in

governments

I.

.

them

to

m

oraer

have

a

to

are

aeai

The

blocked
nonntrioe

countries

fact

there

ports that could

were

„It becomp<?

fer

under

to

the

m

i

n e

normal

was

meat, peanuts and ham in

sugar,

trade, between

nations.;

h^ustrial machinery.
mar1hinprv1CU^Ura^

The.

and industrial

Communists,
of;

hap¬
.

py

to

.

mine

eign
is

under¬
our

for¬

trade;

it
of

part

a

,

the1 bold

A. M.

Strong

war.«

ropean

extend

and

Japanese exporters
long-term
credit
sup¬
by government insurance

trying to stage a come¬ ported
back at an.y price.
which American exporters can¬
The United States is entering a, not match.
n
period of industrial readjustment.
Increased Interest in Export
We are reducing our military ex¬
are

gradually discon¬
tinuing our aid to other nations.
We must therefore maintain our

As

our

there is

"In

European
which

have

after the

been

been

foreign

markets

the

of

report

recent

interest

of

the

months. there vhas
,

for

inquiries and applica¬

credit

assisted

by

assist

United

credit

7 "The

us

terms.

Soviet

and

an

and

extended

ing agreements with
ghanistan and Egypt.
variety

a-

ucllCiU

in terms of

Secondly, the Bank engaged in
financing the exporting of heavy
machinery and industrial equip¬
ment.

increased

other

The

bank

the

operated

ucts

the

7?
The

Bank

on

working capital
inadequate.
A

New

Policy
tti

life

T^^i.

j

of the Export-Import
extended by Congress

was

for

various

ini?

authnritv

interest

in

the

-

•

■

Jan.
"It

United

the

States

same

"The

.

Export-Import

Bank

loans to the financing of projects
which will

of

enable

the

country of

the borrower either to

United, States
dollars

7, 1954, said:

is

in

strives to confine its development

'

Arey, Assistant

Vice-President

and

the

on

Mr. Lynn U. Stambaugh, Dep¬
uty Director of the Export-Import
Bank of Washington, in an address
before the Export Managers' Club
of New York in April of 1954 said:

of

position

7

always had in;
Bank some
advisability of

and other countries."

the

whose

been

future."

have

system of export credit
for
example
thaj;
is
quite successful in Great Britain

United States prod¬

Hawthorne

Mr.

granting of loans to United States
had

the

we

insurance

Bank, in a speech before the
the
Export Managers Club of Chicago

in

was

in

Director

which

in

area

exchange

more

tor

earn

dollars

more

to

or

save

currently being expended

essential

imports.

.

.

.

Let

assist in
financing exports and imports and
the exchange of commodities. We

make

cannot finance all the exports of
tb
TTnU d ctatp<, and it 7,at; not

economic financing simply for

our

purpose

jAhtended

We'

to

are

to

Export-Import

instituting

dollars-

foreign
buy

that

question

the country so that it will be able
to

going

are

4

definite additional contribution to

not available.

was

These

of

the

lead

f° .'"te"aea;„ V®
lacing the one fundciiTicntsI prob

the

activities

Bank's

us

expansion

toi- indiscriminate

sake of

constantly

that

certain

will

not

:br:

un¬

the

promoting exports." ;

As you can

readily see, the Ex¬
is no longer
s„eY lem. What is the problem of the primarily interested in assisting
United States in foreign trade, exporters to meet current prob¬
increase, in its
authority and how can the Export-Import lems. It has broader objectives in
from $3.5 billion to $4.5 billion .Bank assist in meeting that prob¬
view; objectives which have been
and the life of the Bank was ex- lem?
pursued under our foreign aid
•?■
..77periods and its lendincrpa^prf
n"easad

was

spv-J

port-Import

Bank

J

fending
f

•.

i

'/

i

Republic of France, to

.

7*
:

I'.-.

r, ">

■

.'f.j?

military

.

.

.

.

Bank of

■

•if-•'*

'• :

programs* and are now carried
by,(the Foreign Operations

out

$100,000,000 77. 58%

Administration,

Japan, for the purchase of cotton in

the United

Credits
v

.

fyiy/r

pur-.

chases outside of the United States.

-

7

cover

to

States

assist

60,000,000 7

U.

manufacturers

S.

Co¬

by the Interantional Bank for Re-i

to

chinery and railway equipment
Development projects in Latin America

Technical

operation Administration and also

35%

finance the sales of aircraft, textile ma¬

construction

4,087,480

2.4%

7,845,000

-

4.6%

and

Development.

American exporters evidently
cannot count

the Bank's assist-

on

Continued

$171,932,480

on

page

40

We Offer:

Province

of

Ontario

however,

are,

3l/s% Bonds

projects abroad and the credit is
as

rule

a

extended

governments
lishments.
•

-

ranging from

ships.-

the

and

to

Dated March

foreign

foreign

7

six

months

authorized

credits

new

15, 1954

?

Due March 15, 1980

estab¬
-

the last

During

1953

consumer goods to
They
are
buying
foodstuffs, electrical equipment, con-

$1,000,000

available mainly for development

exist¬

Iran, Af¬
They are
of
imports

facilities

'

Principal and interest payable in United Stales funds.

of

Price

by

100.25%
•

Export-Import

$171,932,480,

Bank

totaled

shown in the

as

1*
#

„

•

plus accrued interest

ac-

struction equipment,

chemical companying table.
On the In addition, the Bank allocated
export side they are selling min-^ $13,352,580 for development proj¬
ects in Ecuador and the Union of
eral
products,
including
man¬
Africa
under
previously
ganese,
petroleum,
gold,
grain, South

Yield

approximately 3.11%

r

products, machinery, etc.

timber, furs,

authorized

etc.

The

Soviet Russia and her satellites
are;

trying to establish closer
ties

nomic

with

Asia

and

eco¬

Latin

America.

They are offering en¬
ticing conditions to Latin Ameri¬

can

countries

which

include

longer credit terms and payment
in 'the- currency
of the
South

Washington
to

address

Foreign
of

by Mr. Strong before the
Trade Bureau of the Chamber

Gommerce,; Cedar Rapids, Iowa* June
'
"
AaX
r,
ni
A >

4, 1954.

..




on

was

the ontion of the Province of Ontario at any time

at

after March

103,

Bank

as

15, 1959

more

at

various premiums commencing at

fully described in the Prospectus.

of

Offering made only by the Prospectus.

created pursuant

1934.

The Second

Bank

of

March

on,

Export-Import
was created

Washington

9,

1934.

jE'^nort-Import
withdrew

from

The

Bank

-

Burns Bros. & Denton, inc.

Second

gradually

business

in

\

37

1935
Tel.:

30,
1936. The original Export-Import
Bank. assumed ir.adq financing £or
all

or

Executive Order, dated Feb. 2,

and

♦An

Redeemable

credits.

Export-Import

was

areas

liquidated

on

of the world.

-

It is for this rea¬

son

'he loan- We would also like to
the

*

international

is available in all major
countries, the United, States does

aggressive for¬

Argentina, Belgium,
Denmark,
Finland,
France,
Greece, Iceland, India, Norway

ordering

aa

they

purpose.

the

loans

the foreign
benefit our

as

wcli

then
a

of

stream

surance

her satellites

with

Sweden

ao

trade,

try better able to meet obligations

eign^ trade policy and are enter¬ not presently have a private or
ing into trade agreements with government export credit insurmany
Western nations,
During ance company in operation. The
the second part of 1953 and the Export-Import Bank is the only
first part of 1954 the Soviet Gov¬ government agency which extends
ernment concluded
trade agree¬ long-term credit in foreign trade.

and

well

as

x

make

to

improve

Ip

Alti.uugii government credit in¬

Russia

>ha*e 'adopted

ments

country

.v

itself.

the item

mean

cases

the

serve

of

trade and make the foreign coun-

private capital

a

J

*

loaning

countries,

like

We

will

.

to

suppliers in the sale of
their products in foreign markets.

Japan

have attained

foreign

act.

that

into

possible

as

objectives

the

but

rp,

high exporter credit is due in part to
level of production. Substantially the revival of keen competition in
cheaper labor costs enable them foreign markets now confronting
to offer lower prices for many United States exporters.
Furtherproducts. Government export as- more, as defense production passes
sistance through subsidies and in¬ its peak, thereby
releasing addisurance against commercial, polit¬
tional production capacity, greater
ical and exchange risks make it demands for
exporter credits may
possible for them to extend longer be expected."
"
7
war

contemplate.

•

to

effective

as

g°^g t0 l0an+ m°ney °nly
American exporters and 1m-

to

States

and

not

money

in¬

Ex¬

noticeable increase in the

a

tions

1954.

nations

The

number of

billion dollars and the
in

increased

port-Import Bank of Washington
for
the
period July-December,
1953, states:

of

non-military merchandise exports
declined* in
1953
by
approxi¬
one

in

revival

a

surance.

industry have been adversely
Our

trend continues

this

of

in export credit facilities and

affected by this competition.

mately

result

a

competition

foreign markets and continue ex¬
porting at a high level. The in¬
creasing competition is creating a
serious problem to our export in¬
segments

did

us

promoting

the

Peek stated that the banks

exporters

7:7:7:' ?'-7 Credits

penditures and

Important

Mr.

therefore

y

SPC"t in Amfric\
"First, we have to see that the
Bank^histor/1there^were "three ^rr?wer ^ be a7f '? pay.bac.k

markets during the Second World

dustries.

7

credit competition. Manufacturers
of farm
equipment, construction
which
vw
and roadbuilding machinery and
rother capital goods are
receiving
agricultural commod ties such as
requests for long or intermediate
g
commoaities sucn as
tobacco, cotton, wheat, etc., where
credit terms. They find that Eu¬

Our. friends who lost their foreign
War

financing to
4

use

3
SeleCtlVC prOCCSS in
order to make the resources avail¬

in

the
that

equipment that will
assist in building roads or harbors
would have only an indirect ef¬
fect, but if those roads and har?
bors are going to be used to bring
the rich products of that country

good^ekeenlyXPf^rSthe£ foreign ""n*™

•

course,

would be

recently made by Russia
to buy cotton; coffee,

Mexico

does not

certain

able to

RPPty

able to

in

will assist

importing it in such a way that
directly or indirectly pro¬
vide a means of repayment.
It

-

nprPcSarv

*

exchanges in 35 foreign .
^0
which
prevented
the

be, ex¬
in which th'e

case

is

Jmapciiig all of tbe.,$;x-

in

these activi

that

25,

'(.7

;

should

it will

advantage.

(3)

Jan.

on

•

credit

Our

.

item exported

f

oll

,

tremes i will

Senate

availabl€ the Bank is

transfer of funds to manufacturers
in the United States to pay for
industrial machinery, etc. An of- the goods they exported.

ex¬

S.

follows:

in

thesp artivi-

of¬

import.
.

tended in those

"Obviously with the total funds
availabIe or that could be made

witn

focusing point

U.

as

".

Banking and Currency

on

the

were 1954,

e!?nCtode07Xniesngande!tr wa's
necessary in order to dea 77h
necessary

waf

a

development of the country

of

Other
.

such

in

mittee

business

I

im¬

customers to

must

summarized

foreign trade.
(2)

so.

is by as¬
develop

that

and

way,
our

do

The new policy was
by its Managing Di¬
rector,* General Gl£h E. Edgerton,
at the-hearings before the Com¬

objectives,

for longer than six

credit

to

is another

dollars by de¬
veloping and selling to us1 the
goods which
we
need because
there are many things that we

deviation from the original

a

interest

there

that

proce^
it is in

that they can earn

since the Korean War indi¬

ever,

in

that

economies

their

custom

extent

the

national

sisting

tariffs and

some

simplify

to

of the Bank, whether de- submit
by Executive Order or portant

purpose

months,
aM'this' Was ricfta -shffldtent teVrh

fering machine tools, X-ray equip¬
ment,
typewriters,
etc.
Argentina is selling to the Soviet countries hides, wool and other
products
against imports of timber,

a

consistent. From its inception the

Mr.

cate

The

can

dures

the United States would not make

foreign markets.

products from Brazil and

and

car¬

to

Second

of

we

Bank> a definite pattern has been

the bill to

on

They are buy¬
the United States for
ing cotton and other agricultural
Jw- lor

war;

if

ried

credit

a

7

war

us;

which

in

are

the

reduce

Senate

following
reasons
for * the
of the Bank's services:

(1)

American buyers.

in

January,

and

necessity

only short-term credit, he sees need for more extended
export credit insurance to meet similar actions of
foreign conntries and urges
Export-Import Bank expand facilities along
exporters

hearings

Bank

the

*

extend

American

and

ton

can

modideations in the Export-Import

George N. Peek, President of the
Export-Import Bank of Washing-

facilities.. Holds Export-Import Bank
•ift .no longer primarily interested in
..'•'h'iU'n'il
assisting exporters but is
rlinkedr to the (foreign'aid programs, and accordingly exporters
must rely on other credit ^facilities.
Since commercial banks

our

in

House

extend the life of the banks.

interest in export credit

"these lines to protect

the

urged that we
that

It has been

Through

tended to June 30, 1958.

establishing the ^ ^be various changes and

revealed

were

1935, "in

,

Calling attention to increasing competition for foreign markets,
Chicago banker says this development has led to a revival of*

for

reasons

banks

American National Bank & Trust Co.,
Chicago, 111.

'

v'

13

(2665)

June

DIgby 4-3870

Wall

Street, New York 5
TWX: NY 1-1467

mm.

:l

LmI

•

M

m-r

14

(2666)

The Commercial and Financial Chronicle...

<

size

Transformations in

brands,

approximately

quantity

same

used.

of

the

tobacco"

Y"' YY; Y

i

Key Factors in Business Outlook

was

Y, :Y* Y\Y:

In my own mind, I am con¬
vinced that the 2% reduction was

The Tobacco

By FRANK A. PEARSON*
Professor of Agricultural

due almost solely to the inventory

By O. PARKER McCOMAS*

Dr. Pearson contends

President, Philip Morris & Co., Ltd., Inc.

adjustment and to king size smok¬
ers
probably
using
somewhat
fewer cigarettes than previously.

Picturing the tobacco industry's shareholder as the "Forgotten
Man," cigarette manufacturing executive reviews recent devel¬

I do not believe the health ques¬
tion had any appreciable effect in

ing, autos, and clothing.

opments in production and

1953, but may be
1954 figures.
Tax

there is

Y

probably

industry than

marketing of cigarettes. Points

out

sampling and shifting in the
before, and new styles and new brands are

more consumer

ever

compared

April,

months

information regarding formation of the Tobacco
Industry Re¬
search Committee to study tobacco
smoking relations to health.

placing
initiated
land

the

responsibility

diseases

by King James

in

1604.

the

1953

(3)

cen-

State

taxes

-

in

.'1953,
(4)

because

I

c e

s

its

problems

farmers, distributors

dollar—with

O. Parker McComas

(1)

stronger from

Cigarette

from

crisis.

157

billion
iBut

dustry

here

are

we

the

cuss

current

today to dis

status

of

the

(2)

Many of. its current prob-

The

leaf

value

the

of

increased

crop

283,000 in

1940

to

billion dollars in

(3) pre.tax
000,000
153%.

one

increase ;

an

Federal Tobacco Excise Tax in

♦An

address

Chicago,

Mr.

McComas

Analysts
111., June

$181,300,000

in

1953,

depreciation

(-3)

the

on

increased

have
in

of

Dividends
to

similar

comparisons

confirm

but
*

theypicture

the

that

everyone—:but the forgotten
shareowners
has benefited
enormously from the growth of
—

-the
'

cigarette, industry.

price

controls

were

ufacturers
relief.

KOSMOS/DIXIE
THE UNITED BLACKS
Upder
'•

',

and

the

brand

y.;,VY*

1

•

Y. :■i.;- Y.-Y

"Dixie",
and

Carbon

distributes

A

■

'"YY'Y*"'
manu¬

in

world
"

■
.

markets

carbon

blacks

a
,

excellent

and

research

constant

made

uni¬

dependable
and

the

the

year,

price
indus¬

price, ex-tax, has
increased only 57% since 1940 as
against a 92% rise in the Bureau
of Labor and Standards
Consumer
Price Index.

The Removal of Price
Controls

by

engineering

months

of

alter

1952,

the
elections, when it was
obvious that price controls would
be

form,

of

removed, the wholesalers and
accumulated
inventory

retailers
which

carried

into

over

1953.

Further
program.
*

■

■

"Kosmos" and

"Dixie"

■■
,

carbon
life
tire

blacks

used

are

add

to

long

accumulation took place
before the final
lifting of controls
the price increase of
Feb. 28

and

last
and

and

kinds.

durability

the

to

modern

Production

year.

iigures

for

the

first

They

rubber
are

goods

also

used

of
in

many

paints,

varnishes, lacquers: in ink and
paper.

become

"Kosmos"

and

synonymous

"Dixie"

with

have

1953

were

the

to

introduction

Philip

further

Morris

Chesterfield

1

Charleston 27, West

tn

Akron

Canada:

Chicago

Canadian

Virginia

Boston

1

the

first

quarter

of

Industries, Ltd.




tending throughout
was

a

liquidation

inventory with the
production

turers for 1953
der

of

was

1952 in units.

extra

<

-

•

the numbers of

king

same

,

West

size
price

Coast.

place

and

to

how

or

bold

a

would

in--,

man

venture

a

when it will

guess

stabil¬

ize.

Those

the main elements of

are

the tobacco

day.
ris

industry's picture to¬

What

are

at

we

Philip Mor¬

doing about it?

Well, in the first place, we are
cognizant of this picture

most

it affects the

shareowner, and feel

attention

more

earnings.

somewhat

industry,

should

However,

-

less

than

and

separate

ex¬

manufac¬
un¬

Because of the

length of the growing king

for

our

the

eco¬

The

but

are

excessive.

the

present time business is

good

business

our

because

business

but

and

textile

ac¬

four

is

active

good

so

the

as

it

automobile

depressions.

Business

little better this fall be¬

a

industry will im¬
but the improvement will

prove,

little

a

disappointing

because

the automobile depression will not
be over.
YYr Y
The

due to fluctuations in
for

not

of

the textile

cause

be

1

building

is

because

was

will be

'

expenditures

a n

accumulating

At

there

were

i li

houses and other

of

are

they
Dr. F. A. Pearson

the variations in

v

stocks

have not reached the point where

of 1

Bankers, like others, are prone
to overrate the power of the
gov¬
ernment and underrate the power
of 160 million civilians.
Most of

i

before buying

depression
and
not
likely to be; much
during the rest of 1954.'

is

buildings

the end is not in sight.

c

down

wear

This explains the pres¬

car.

there

anything he

tivity

have

consumers

automobile

recovery

depression
was

new

ent

of, the present"

nor

they will

a

were

of -America.

the

their present stock

weath-

cause

car-port

Collectively

credit

nomic

a

every

decided that

always*

the

get

small

local

cannot afford

bankers,

economist,

an

who
sta¬

a

If he consults his favorite

hab¬

Food, the most important, is
relatively non-variable and is the

erdasher,

great

in¬

building contractor concerning the

Building, the second most
important, is subject ^to violent

state of their business, he will be
in an excellent position to appraise

fluctuations

pe¬

the nation's business. This method

and under-produc¬
most of the fluctuations

praisal than long distance calls to

stabilizer

of

American

dustry.

riods of
tion
in

and

its

regular

over-

cause

American

industry. The auto¬
clothing industries are
also subject to regular periods of

mobile and

of

relief
that

that it

was

adopted

the

last

as

so..

We

business

not

to

believe

retail

the

product in two dlifferent
sizes-at the same price.

A

Cigarette Export Market

second

approach
problems
market.
II there

to

plank
the

deals

in

our

current

with

overall

the

global demand for
American cigarettes, limited only
by the amount of dollars available

selves with considerable degree of

regularity and it then follows that
the

of

sum

these

be

can

casted

fore¬

will

the
in

automobile

yield

who is supppsed to

man

There

is-

no

and

dealer

accurate

more

a

Washington

'

ap¬

know

New York.

or

' i

method

known

page

41

Y Our attempts to maintain
of power in both

ance

of

ter

housing.

income

and

periods of

over-

under-production there must

be considerable

and

over-

under¬

stocking of goods all the way
from producers to consumers.
At
the

there

present time

excel¬

are

lent indexes of the stocks of goods
at the manufacturers' level and in

the channels of trade at the whole¬
sale and retail levels.

speaking,

they

Figuratively
merely side
big tent.

are

the

dresser

of

closets
in

the

number
streets

40-odd

in

and

million
in

car-ports

of

measured,
factors

drawers

automobiles

and

rages

the

around

houses

„

homes,

and

on

ga¬

in

the

the

main

America, although not
the most important

are

affecting

ness.

v

from

foreign

'

nation
or

food,

in
in

reduotion
does

State

June

4,

Bankers

Club,
1954.

Lake

the

Association,
Placid,
New

clothing

New

and

in

re¬

are

amount

of

This

home-buying dollars
up in the number

of homes

built.

It does

appear

as

reduction of the amount of space
and quality of construction.

a

This
of

accounts

for

the

millions

small,

shoddy brooder hous.es,
misnamed homes, that during re¬
cent

years

sprang

like mushrooms.
is

but

everywhere

up

A brooder house

good place to start

a

a

In

poor

place to raise

family

a

one.

comparing the building booms
ana fifties, it was

the twenties

of

that

found

based

the

on

number

of

dwellings constructed, the
building boom of the fifties ex¬

ceeded that of the twenties. Based

the

of

money

as

proportion
spent

of the amount

on

construction,

big

as

was

about

that of the twenties.

Part III
Building activity and the price
level

the

are

Lake

York,

war

show

not

Recently the civilian stocks of

York

for

their income left for housing.

half

before the

such

taxes

decreased

a

_______

♦An address by Dr. Pearson
58th
Annual
Convention
of

*

take

for

expenditures, in¬

income

the boom of the fifties
Textile Depression Over

can

consumers

automobile

on

American busi¬

No

assistance

their

duce

the

their

bal¬

without sacrificing housing stand¬
ards.
Since civilians cannot re¬

flected
are

a

Europe and

Asia accounts for the lack of bet¬

creases

I

Since there

Placid

on

of

business

no

cycle that repeats itself with reg¬
ularity. The three important fluc¬
tuating components of'our busi¬
ness,
building, automobiles and
textiles, however, do repeat them¬

export

a

Continued

There., is

industry

At the end of World War
was

regularity.

repeat

degree

some

Changes in the stocks of clothes in

lead

same

The

parts

with

shows

whether this

do

component

months

few

to

its

themselves

policies

pricing

doubt

good

its

volume.

as

of our competitors

some

it

of

to the

industry
beginning to con¬

the

in

when

effected,

realization

a

come

was

However,

is

course

ago,

year

sider earnings as well

by

the

of

completely
set by our. larger

problem had
and

10%

cannot

the path
competitors. ,A
seemed

paid to

less

comprise

ourselves

from

price

be

we

7%

result that the

about 2%

has

taken

be

as

and a
deal run¬

the year, there
of this excess
the

one

a

the

have

some

and

and

the

at

regular

a

cigarette

filter

on

really

April

States

they

There

it

1952.

der

of

United

than

Figuratively speaking,
nice new shiny car un¬

sumer

is

was

there is

Presidents
the

faster

out.

worn

us

overand under-production and forecasting
the
trends in
com¬
is probably
more
con-, affect the level of business.
modity prices, the most important
sampling and shifting go¬
It is impossible to forecast any¬ variable affecting the welfare of
ing. on at this moment than ever
thing unless it repeats itself with agriculture.
before in the
industry's history, some
degree of regularity or un¬
and it would
Part II

**

to

of

produced

year

brajnds,

-

by

1953

work

Cigarette,Consumer •Sampling *
-Y ;
-and Shifting
Y; :):Y Y-Y

size

king

ning throughout the quarter. Thus

unit
Memphis

of

January

promotion

quality. above the first quarter

UNITED CARBON COMPANY, INC.

sales

augmented
of

in

Commencing in

New York

and

quarter

to

dilemmas

will continue to take
place in the
filters that are being used.

net

last two

in

introduced

man¬

measure

with

even

last

a

the

"Kosmos"

names
iY-Y'Y'v.

United

basic

In the

factures

secured

But

adjustment
try's

lifted and

com¬

by the 1940-1953 compari¬
presented earlier, the in¬

deed 'who

Part of this 13
year picture was
rectified last Feb. 27 when

of

size

.

only

the

Changes

only 15%.

nvould

and

out

companion

stock

to other

their

positions

structure

$67,300,000
$77,300,000 in- 1953, or

I could of course
go on

Both

fall.'
Recently automobiles have been

"

to believe. The

as

manufacturer^

maintain

already

from

1940

-

;

lead

will turn up this summer and

;'Y*Y'' Y, Y:Yi YYY

or his Administration
could do about it except
talk, and
will.; of talk there has been
plenty and

market

year.

regular

dollar.

common

forward to

the reduction in price of
size filter tip cigarette

only from $84,800,000 to $118,000,000 in 1953, an
.'ncrease of only 39% or less than
the

election
would

an

clothing were large, and a textile
depression occurred during 195354.
These stocks have been de-:
pleted and the textile industry

things, food, building, automobiles tistician or a baker's dozen of the
styles and sizes of cigarette^ on and clothing. They are so
impor¬ business services, need not have
the market continues.
Recently ,i tant, that most indexes of business an inferiority complex. The most
we have seen the introduction of
activity reflect the composite of up-to-date data on the business
a
new
king size filter cigarette, these four great industries.
situation are at his beck and call.

increased

come

I

sons

crease

and state income
increased from $33,300,000
to

last

to

way

posed

to

biggest increase of all, 444%.
(5) As a consequence, net in¬

before

1954.

petitive
their

$299,increase of

an

per¬

estimate,

we

move

of the

>

•

1940

Society of Chi¬
10,

of

increaSed

the
by

Investment

cago,

1953,

1953

gain, of course, at the expense of
regular size cigarettes.
As the cigarette

(4) Federal
taxes

(2)

the

in

1954

year

double their

maneuver

$118,000,000 in 1940

consump¬

the

•

profit

than

will continue to

391

gain

that

calendar

against 26%

a

.

the

achieve 30-32%

increased

1953,

estimate

-

Dollar sales went from
$1,1940 to $3,100,000 -

from

$234,-

than

more

1953,

in

At the present time

King size cigarettes,

the

to

position in

payments,

formance and capture 8 to 9% of
the cigarette
market
this
year.

report¬

1940

•

year's.

for

more

000 in 1953—an increase of 206%.

358%.

of

in

tax

state

closer to the sales pic¬

in dollar volume.
'
' ; e r,
fair or
Within those totals, great shifts foul. ■ Presi¬
are taking place.
Our estimate is dent E i s e nthat
filter
hower was not
cigarette
sales
will

014,000,000 in

domestic

from

units

150%..

in-

lems stem, to my way of
thinking,
from the following set of facts:

(1)

sales

billion

-

op¬

of

best year

by

of

some

Y The .present misnamed
Eisen¬
hower depression should be called

the

;

and gov¬

..figures of the five large
ing cigarette companies.

and

emerged
each

gains

Part I

three

in units,
industry's

increased

these

first

will be off from 3 to 5%
but almost equal the '

by the wholesale

contrast

us

The

.

would

tion

It is estimated that the dis¬

the

of

be-

fore,

I

ernment treasuries—gains I might
.say that far exceed the inflation

f ul 1 y

s

the

•

suc-

solved

in

little better

a

important factors affecting economic welfare. Y

v

As against these figures,' a. textile-automobile
depression
production figures, our and it is not as severe as the

are

to last

400%.

or

Let

tobacco indus¬

has

tobacco

$98,000,000

'$501,000,000

6.4%,Yand

tures,^ indicate first quarter con¬
sumption was off only 5%.
The
April state tax figures are equal

*208%,

know that the

try

which

from $133,000,000 in 1940 to
$410,'000,000 in 1953, an increase of

point these

out

local

fi;om

about

and retail tobacco trade

the "weed."
-1

to

counts enjoyed

of

use

and

increased

1940

r c u 1 o s i s,

the

from

down

are

studies

152%.

or

ajpaong others,
were
ascribed
to

increased

which

Says business will be

industry will improve, but auto- Y
mobile depression will not be over.
Lays blame for deficient
housing to government outlays for foreign assistance, and
holds building activity and the
price level are the two most Y

comparison
inordinately high 1953

the

with

$640,989,000 in 1940 to $1,613,792,000 in

Eng-

•*

•

collections

was

in

Through

turies typhus,
influenza, tu-

b^e

for

tobacco

on

2%.

reflect

quarter.

*

in

this fall because the textile

in

down

was

February
down

of variations

understand, will be off

we

than

less

1953

March

Economics, Cornell University

most

business activity
fluctuation in civilian expenditures for
food, build¬

due to

are

influencing the
paid production

9.19%,

16.8%,

Pleads for government
cooperation with the
cigarette industry, particularly in area of foreign trade, by fav¬
oring exports of cigarettes rather than raw tobacco leaf. Gives

various

to

January

the increase.

on

Thursday, June 17, 1954

tWO

most

nffnn+irvrt

f actOrS

au

affecting

the

welfare of

„

important
_

economic
bankers, bakers, butch-

-

Volume

179

Number 5334.

.

.

The

and candlestick makers. When

ers

building

activity
declines ;and
commodity prices fall, gloom .and
fear spread across the natioh witn
.

„

the speed
or

of

0. J. Devine

tornado.

From

Seminar
advanced

States

the

most

etched
40

one

and

recent

the

on

old

years

unfavorable

is

or

deeply

of

memory

every¬

Tnis

more.

combination

closed,

course 'Of

study,

The

the

of

markets

Government

for

and

United
tax

Security, W.P.A. and Keynes'
deficit-linancing theo¬

make-work

ries that have captivated

bankers,

businessmen

and

unfavorable

combination

farmers.

This
bank¬

daily

a.m.

to

sessions
in

noon

run

the

for

course

The

1:30
will

course

two weeks.

scholastic

authorities,

Hughes
with

Dr.

ducted

Sipa Heller of New York Uni¬
versity.
Others who will speak

its

before

empt

securities,> is

;being

con¬

by C. J. Devine & Co. in
office at 48 Wall Street, New

the

student

employees

has

become

Ratterman

Fourth

Street.

associated

&

izing in municipal and

Trinity

ruff,

classes

out

Believed
course

ment

to

and

and

the

ment

first

Co., Inc. for

Dickinson

&

Co.

Andrew Lord, Jr. Joins

corporate

Eaton & Howard Inc.

(Special

.

Officer, the Hanover Bank;

,

Tucci has

White

of

Bank

Wood, King & Dawson.

to The

Company

Financial

BOSTON,
Lord,

Chronicle)

BLOOMINGTON, 111.—Mark T.

tional Bank and Russell Mclnness

by a govern¬
municipal bond house,

Miss

many years special¬

With White &

Harold C. Taylor of the Chase Na¬

such

In¬

Hess

(Special t.o The Financial Chronicle).

Invest¬

v' v"

be

ton

Building.

of

Illinois State

previously with W. G. Hous¬

was

trading.

'.Officer, New York Lifp.In¬
Company.; Craig S. Bart-

lett,- Vice-President

Bank

the staff

Company,

Invest¬

surance

undertaken

and

Vice-President

ment

are

the country.

other related

subjects include H. Everett Wood¬

the

Chronicle)

formerly with Edward Brockhaus

on

economics, taxation, finance, tax-

Attending

joined

vestment

Co., 307 East
Mr. Hughes .was

exempt credits

Place.

has

&

York City, and in the
nearby New
York University Graduate School
of Business Administration at 90

and

V

to The Financial

QUINCY, 111.—Janet Dickinson

CINCINNATI, Ohio—Thomas J.

including Dr. Marcus Nadler, and

ex¬

'

»•

.

(Special

(Special to The Financial Chronicle)

includes lectures by

15

With Hess Inv. Cp.

Thomas J. Hughes Now
With Rattermau Go.

De-

continuing from

NYU.

prominent

selected employees in
every
bank, spawned the Blue*
the home office and in
the firm's
Eagle, the A.A.A., the Ever-Nor¬
branch offices scattered
mal Granary, the Wagner
through¬
Act, So¬
cial

at

continue

An

facets

The maelstrom of the thirties is

11

office,

to- 6

dealing with all the principles and

major depressions due to the

favorable combination of falling
prices and building activity.

seminar

from

vine

President Washington to President
Eisenhower there have been five
un¬

(2667)

the

Co,,

Florida Hurricane

a

midwestern

a

Commercial and Financial Chronicle

become connected

&

Company,

with

Mass.

has

Belt

Eaton

—'Andrew J-

become

associated

&

Howard,

Federal Street.

with

Corn

Jr.

Mr. Lord

merly

Building.

representative

a

24

Inc.,
was

for¬

for Lord,

Abbett & Co.

rupted

farmers, businessmen and
bankers.,, The nation suspended
gold payments.
The

early

years,

prices.

nineties

repeat

a

declining

were

angry

performance

building

and

of

declining

The nomestead strike, the

Pullman strike and Coxey's
flashed across the horizon.

Army

suspensions increased from

about'

two

"to

about

banks.
of

30

thousand

per

J, P. Morgan and

bankers

loaned

.

a

the.

-

Bank

group

United

States

Treasury $72 million and
kept the United States on the goldstandard.'.'

f

/ Falling
prices and falling build-'
ing activity played havoc witi the
-popularity of the particular indi-/

vidiial who happened to be in the
House.
Democratic
Van

-White

Buren and Cleveland

and

Kepuo-

lican Grant and Hoover illustrate
this point.

(

-

Conversely,

a

and
?.

hue suffuses

rosy

the. nation when

building is active

commodity prices'are

There

have

when real

been

estate

rising.

five

-

periods

activity and the

price! level

were
rising at the
time. They represented about
one-fifth of the 170 odd years be-,

same

tween Presidents

-Eisenhower,

Washington and

v

[■_ The { first

V' .*•

:

of

:i

...

these

r

•

_;

favorable

combinations occurred during the
of the first Presi¬

administration

dent of the United States,

Washington.
tunate

It

George

indeed

was

for¬

that

building was increas¬
ing and commodity prices rising
during the early days of the na-tion.

Had

they

been

would not have been

the

early

have

been

reoubric-

Washington 1 might

the

the

as

all
in

days 1 of ; the

-

and v George
well

falling
so

last

first.

President

The

'

as

favorable

combination

made
Secretary of
Treasury Alexander Hamilton
the idol of the Republican Party
and George Washington the idol

the

of everyone.

The next favorable combination'
occurred during the

ties.

Andrew

eighteen thir¬

Jackson

Presi¬

was

dent

during eight years of rising
prices and rising building.
He
was then, and still, is, an idol of
the Democratic

Party.;

'

The next favorable combinat'on
occurred

and

prior

the

next

t^e

to

Civil

did

one

until almost

50

turn

not

century.

the

of

War
occur

Now watch the community's money go to work!

later at the

years

Th^v

were

both, in every sense of the word,

golden

eras.

When
'

a

bank

moves

You have just lived through the

fifth

favorable

hundred

and

combination.

One

fifty million peoole

body

benefits.

means

in,

Here's

every¬

what

it

advance mortgage

have been enjoying a great pros¬

•

#

•

sion

of

what

caused

the

sudden

of the Horn of Plenty.

thrive,

market

a

community

must

have

place, schools, places of

a

wor¬

Unfortunately, the millions of

ship, roads, utilities and all the

many

people who have failed to

other institutions and services

essen¬

ciate

this

extravaganza

likely to
other.

Greatest

live

to

appre¬

are

not

tial

experience

an¬

of these it

Believe

it

Show

on

or

not,

Earth,

the

rising

to

health and welfare.To get most
must

have

of available money.

bank

comes

a

made

ready

source

That's where the

in.

rounds

only

five

Putting Money to Work

last

century and

a




half.

Bank loans made

possible by the

busy making

work. They help

to

make

safely, swiftly and

obtaining the funds
schools, highways and
other public improvements.
Most important of all, they
put the

economically into

a

to

and assist in

needed

for

community's
That

money to

means

a

great

wherever money
women

times at irregular intervals
during
the

help old settlers

work,

too.

work locally.
deal because

works

men

and

In the community

-*or

its

the country are

across

money

money move more

prices and rising building activity,
has

new¬

expand,

comers,

To

for

money

at Work

More than 14,000 commercial hanks

.

perity but have little comprehen¬

appearance

help finance the butcher,

baker and candlestick maker. Banks

to you.

14,000 Banks

community's deposits and invest¬
ments

the entire nation if you will

this

results

in

better

living and

wjder opportunity for all.

—

a

ments

every

that

stream

gives life

to

for

as

more

proud

pay¬

community.

The Chase National
serves

of

business in

to

banking

New
than

be

a

Bank, which

York

correspondent
3,800 U. S. banks, is
part of the American

system.

The CHASE National Bank
OF

THE

CIT^Y

OF

NEW

YORK

(Member Federal Deposit Insurance Corporation)

I

1

16

The Commercial and Financial Chronicle... Thursday, June

(2668)

the

about

Nj Serious Economic

but one must
that the past is
not the sole guide to the future.
Time brings changes in circum¬
stances—and these often preclude
a repetition of history.

Recession in Prospect

All of

By BEN H. WOOTEN*

people
who
adhere stubbornly to the old be¬
lief that what goes up must come

that past is not sole guide
to the future, contrasts current economic situation with that of
1929, and on the basis of changed conditions holds there is
not likely to be a stock market collapse as experienced in the
earlier period. Foresees vast possibility for better living and
says consumer buying power is tremendous, though we are now
in a "buyers' market." Decries fears of a serious recession.
Prominent Texas banker, warning

1

The
"The

'

•

•

••'

'

f

'•

■

■

'

•

subject assigned
Business

der that
out

V' :

we

from

is,

to me

Outlook."

In

or¬

intelligently look

may

where

we

let's an¬

are,

of

business

have
at

stopped,

least

tem¬

porarily.
y ^

t

r

i

solely

tions

in-

of

d

u s

based

The

output

that we are on a nor¬
We are troubled,

plateau.

of

police action or war, so any state¬
ment I may make relative to the
outlook
for
business
must
be

to

are

world condi¬
today, without

account military ac¬
other thah
a
possible

into

taking

n

upon

they

as

April and

ear¬

tivities,

ly M a
steady.

held

stepped-up defense program.

y

Most of

Em¬
be

to

automo¬

output

vision

sets

April.

volume.

The

sumer

durable

goods

4%

in

Tele¬

turned

were

larger
creased

major

con¬

in¬

output

April.

in

out

buying
flurry is going on in cotton tex¬
tiles.
Farm machinery producers
are
encouraged by the latest
trends.

A

Steel mills,

however, are
still operating at 70% of capacity.
The price picture gives little or no
indication

of

additional

business

pitfalls.

Home building seems to
be headed for another record year.

School construction will set
*An
the
tion

address

19th

business

every

in

rose

looking into

by

Annual

Wooten

Mr.

International

Convention

of

the

new

a

whether he realizes it or not.
future.

not

run

have

opinion about the
If he did not, he could
his business.
He must

which to
How could he
How could he

something

upon

his

base

plans.
budget?
his inventory?
he make contracts?

make

a

determine
could

could he manage his

How
How

operations in

general if he did not have some
belief
about
what
lies
ahead?
Sometimes
the accuracy of his
spells the difference be¬
success and failure.

be given to the

must

Past Is Not
There

Sales

is

perience

no

Sole Guide

judgments

forming

in

for ex¬

substitute

1929.

There

threat

of

budget

no

(Only 137,000 in the reg¬
in 1929.)

relatively

war were

simple compared with those of to¬
day. Danger from a sneak air at¬
tack with such destructive devices

atomic

as

was

not

and

even

hydrogen

bombs

imagined, let alone

latently feared.
Today

$1.00

Per

r

threat

of

of

Communism

and

—

heavily

upon

industry

today.

Here

I

refer to the generally

known—but
—
realization

little
among

publicized
business leaders that

a

seri¬

victory

great

At

munists.

for

the

Com¬

it would very

least

probably send us farther down the
leftist road, perhaps far enough
to

forces

total

than 3,000,000 men, and we
spending at an annual rate of
almost $50 billion for national se¬
curity.

destroy much of what remains
President Eis¬

enhower

this

realized

America

of

Wise

free

the

management

hold

not

and

does

today

theory that de¬
pressions are inevitable or that we
should sit idly by awaiting the
return
sure

if

of

you

prosperity,

X

am

that,
industry will take
in fighting a de¬

necessary,

initiative

the

and

will agree with

me

(4) Now let me refer to a fourth
It is financial.
In

1929

international

situation

When

future,

we

fact

unsavory

the

debt

Federal

that

the

It will

of

cold circum-

a

cannot

be

left

of

out

probably keep

9,000,000

tional deficit financing.

(5) My fifth point relates to

the

securities market today.
There

are many

lieve
Mis

people who be¬

the stock market fore-

tnat

the

future.

then all of

us

be

that

If

so,

should be optimistic

because the market

is the highest

since 1929.

there

But

is

ket is
than

a

difference

one

Today's mar¬

whiffh is important.

in much* sounder condition,

was

the

one

1929.

of

Speculative forces today play
comparatively small role in

price movements.
Margin regu¬
lations work against speculation
and in favor of investment.
The
margins of the old days

thin 10%

exposed the market to far wider
fluctuations
than
now
exist.
Forced
likelv

is

much

Pension

less

funds

liquidation
now.

a

and
rel¬

to

atively steady flow of money

Continued

only

on

page

41

By JOHN BUTTON

United

takes delight in the

us

that

be re¬

Securities Salesman's Corner

probably will have to

prospect, but it is

necessity,

is

are no

a defense program cost¬
ing from $40 to $50 billion, maybe more, annually for a long time,

None of

was

appraise the economic
must not overlook the

we

of

investment trust funds with

circumstance.

The

must,

come

per¬

flected in an ev.en proportionately
greater decline in Federal - rev¬
enues, which would force addi¬

world."

the

to

and

Any decline in in¬

sonal incomes.

he

when

said, "A high and sustained rate
of economic growth is necessary
to the welfare, if not the survival,

of its revenues

from taxes on corporate

of free enterprise.

are

presently tense—and there
apparent signs of easing.

making it imperative that the na¬
tion's economy operate at a high
level.
The U. S. government de¬

American depression might be

ous

in the cost of

debt and

government you find a condition,

rives close to 80%

out

grows

bears

more

a

Most

People Have

Financial Goal

a

changed when a planned program
was placed before them.
their constant seeking after secuThere is a broad area of goodrity. It is so important that the will and confidence that can be
greater portion of our days is tak- created by getting over into the
One of I the most important con-

siderations

up

en

in

lives

people's

is

preparation for ac- client's backyard and finding out

with

what he actually wants from life
provide financial security during as well as from his investments,
our working years, and then con- Securities are only a means to an
tinuing such endeavors so that end—they provide income and a
na- our responsibilities to our fami- feeling of security against the viin- lies and ourselves in later life cissitudes of life. The same is true
wil be properly accomplished.
of life insurance, real estate and

and

men

It will draw

heavily upon our
tural resources and upon our
dustrial capacity.
V
(2)

A

second major circumdifferentiating 1954 from

stance

1929 is to be found in

phy

of

in

philoso-

our

government.

government

The

of

role

economic

our

has changed markedlv in this

quiring

skill with which we can

a

life
gen-

The life insurance business has
been building a solid public acceptance of the idea that people
can
out and carve a sound financial foundation for themselves
through systematic saving carried

other forms of property. When
you find out what your j&ents
want from their property, as well
as their aims, their hopes for their
children and themselves, you begin to build a relationship with
.

Federal insurance of bank denos-

throughout the years. Today peo- them that becomes both close and
Ple are acclimated to the idea that friendly
Selling securities then
is Practical to plan their finan- resolves itself into a pleasant task

Us; there

cial

eration—whether
it

Share)

Proposed Offering: 100,000 shares of Common Stock of The
Transportation Development Corporation are to be offered

or

not

In

you

1929

was

and

there

was

social

no

like

I

no

security

program

distribution by the issuer.

Price: The price to the public is $6.00 per share.

FHA

«

a

action.

pression.

armed

our

of mention

cisions in

few millions for
we had a standing

Weapons of

political

ef¬

the minds' of those who hiake de¬

army scarcely large enough to be
called much more than a consta¬

bulary.

of

undoubtedly

meager

and

the

$3 300.000,000.
the

In

engaged, directly or indirectly, in defense alone, counting those in the armed services,

Common Stock

for sale in connection with

the

In the Federal
were
appropriating

we

only a
defense,

minimum

Transportation Development
Corporation
Value

worthy

a

time

that

at

was

aware

A third circumstance very

(3)

1929:

women

buyer.

(Par

in

well

are

of

and

fectiveness

today.

account.

100,000 Shares

The

articulate

in

high

was

now

organized too—are aggressive and

maintain

sell these securities.

to

market

is

Other groups such

farmers and veterans

as

great danger to freedom anywhere
comparable
to
the
Communist

tween

They are subject to
the registration and prospectus requirements of the Federal Secu¬
rities Act.
Information about the issuer, the securities, and the
circumstances of the offering is contained in the prospectus which
offer

an

to

not exist

States very

IDENTIFYING STATEMENT
not

think
improve that

strongly

more

leadership

much smarter.

(1) The World Was at Peace in

stance

This is

only

elec¬

on

most

much

Union

then.

of the conditions of 1954

forecast

before

Executives, Chicago, 111., June 2, 1954.

He

must have some

Distribu¬

National

it too,

does

man

day compared with only 3,625,000

ular army

ball" to find what the
holds, but on careful re¬
flection
we
must
realize
that

Wooten

H.

Ben

stock

some

are

have

future

somewhat.
bile

men

'the crystal

improving
The

business

chided economists for

ployment
seems

us as

organized now than in 1929. Union
membership exceeds 17,000,000 to¬

$16,900,000,000.
Today it is al¬
$275,000,000,000.
Interest
charges alone on our present debt
are about $6,000,000,000.
The en¬
tire Federal budget in 1929 was

1929, and it is high now, but here

of today leads

as

however, by the gaunt specter

slide

appears

The

that did

to hope

mal

going

are
record.

stabilized.

us

the

prophets of doom have had

.they

agricultural products seems

raw

The situation

of this day.

Briefly,

The

by

hectic record, and \ do not

a

utility financing
near-record levels. The price

is at

alyze business
as

prosperity is always
depression,
and,
therefore, we are in for trouble
because it will happen apain.

followed

Public

record.

some

support at the ballot box
tion day.
Labor is

down—that

'

.

number among our ac¬

us

quaintances

President, First National Bank in Dallas

■

future,

realize

always

17, 1954

FnHof eveng cgonceived.

was

morteaep

inmir-

^

affairs so that retirement,, of

section ofthepropermvest-

provision

ments and watching over them

I- their families in the event of
thelr death and building up an

no more

education

of

children,

There

was

Business of the Company: The Corporation proposes to en¬
gage in the business of developing and exploiting new and

hour

and

law.
insurance and farm

Income that KwlU tugme"t t.^!r
earnings can be worked out within

improved

price suoport legislation had been
advocated from time to time, but
scarcely anybody then had the
fainest idea s-ch laws would ever

tbe UTmlts "f the,r Jear"ing capac:

field

methods

featuring its

bed and its

new

in

the

railroad

and

rapid

mass

Federal

transit

precision, prestressed concrete road¬
lightweight rolling stock.

new

advanced

Outstanding Securities:

March8?di954

Common Stock

(par value $1.00 per share)
Warrants for the purchase of Common Stock
$3.00 per share expiring February 13, 1959

bo

117,500

as

to

has

statement
no

the

become

assurance

amount

that the

<111,250

Copies of

the

proposed
from

any,

form
the

of Prospectus may be obtained * v>'
undersigned.
'
,
'"*■.

of sodsd

Please: send

date

of

r ->
,

•

xr

i

i

V.

i

.Yq t. a l 1

,

o f

Identifying Statement is June .16,

a

copy

' V

'

'V,

these legislative

others of

this changed

a

similar

philosophy

everv

hand To

in

of

power.




a.u

pie fully expect
ance

be used

1

*

,

reasonably

Any

means

at

the mainten-

full

employ-

administration

un-

willing to act in accordance therewith

would

There

are

yeara agowhich they have in mind in inpeople who have only westing^you can clear the air mid

a hazy idea of what they want
when it comes to buying secun-

receive

unfavorable

get them backon the track again
by remipdmg th^ where

9f- A" «*£ "eed 18 someone to their
fit down with them and put those
ideas into concrete form.

ment, production and purchasing

Name
Address

Congress

of government the American peo-

1954

(
copies) of the proposed form of
Prospectus relating to 100,000 shares of Common Stock of The
Transportation Development Corporation.
me

be

,*

Under

ln

"the p0Ssible 25

should

t-JWKF:,ffe ^ ?ulFforce-arid:effeet right now.
*

Street, New York 5, N. Y.

this

be

vXdihsing'Power"

L. H. ROTHCHILD & CO.
The

to

theory tha
what

y. It is always posthe investment securities si.ble to reaffirm the objectives of
can utilize the "program the account in discussions with
planning aPproach" to a much them. When people are Inclined
greater advantage today than was to stray from the main purpose
are

business

necessary "to promote maximum
employment, production, and pur-

changes..(and

'52 Wall

do

cational standpoint, and those who ed periodica

nor

TT yLi

,

government
to

a

problem

J°n-Pnt^e establlshed th,s
type of clientele
Each account that you have set
lty' J[? otber vYords; the gr0"nd up °n a Properly planned and
w0Jk has-been laid from an edu- programmed basis can be review-

1Q9Q

in

a*

authorized in 1946-take any steps

^

t

npnnip

i! i lf

empowered

that Will be available for
.

Mr»qf

bah? he!d t!v the
Federal

The publication: of this
proposed offering will be made or
I

.

enacted

handled

effective.

of securities, if

distribution by this firm.

crop

S nort

at

registration statement covering these securities is not yet.
effective. No offer to buy or sell the securities, should be made and
no
offer to purchase the securities will be accepted until the regis¬
tration

minimum-wage

regarded imemnlovment

The

notice is

general maximum-

no

can

readily

be

That

•

accomplished build stronger ties with those who

through the consultation type of
interview wherein the client's

0wn ideas are put

real interest .. should be

As we approach new clients and
doing business with

are

now

we

should constantly keep

down in black simple fundamentals before

us,

these

us

of

and white arid clarified for them, asking questions which will claI have known cases where retired rify the real objectives of' those

had a definite need for
regular and generous income from
their investments, yet until somepeople

one

came

air

for

along and

them

their

cleared

these -objectives when changes in

with whom we are doing business,
We should also remind them of

the their investments are indicated, or

haphazard when new commitments are made,

methods of purchasing and selling

Successful investment results and

securities left theiri with

satisfactory relationship with
clients can thus be achieved.
-

of

insecurity

.

that

a

was

feeling
only

Number 5334...The Commercial and Financial

Volume 179

(2669)

Chronicle

It

7
i i

^

i,

t

«

M

M

fcr-A
l^r-d

\

%«. -J"* *

y.'r*/*.

D

,

,"*B "ffl

of"™ndWdMdsrj??UppKCT

•Wwton srm

We'rton,

W V*

coMpm
m

»PP&«i„„s

'■"70;:- -C--': o

.v

ALrv®--:"

gp:*

-

-n?*.

m

Merchandising's most modern methods work best

Multiple Buildings

in National's Long-Span
When the time

came to

pick

a

suburban Cleveland's modern

building design for
new

Meadowbrook

Mart, the most logical choice—from

every stand¬
point—was a Stran-Steel Long-Span 50 Multiple
building, 150 feet Wide and 642 long.

Co*?

nBufo,NcwY°rk,fll
? e division for nmT

of

/•

p'ZTcJLTpT""
ro<W

iron

ore

of

from

finally, Long-Span was chosen because it easily
adaptation and modern treatment,
shown by the illustration of the Mart above.

And

lends itself to
as

The

Long-Span Multiple,

a

product of the Stran-

Steel Division of Great Lakes Steel, fits into any

First consideration

site

"was

wnoNAi mms

mercial—as

was floor
space, and the choice
strongly influenced by the Long-Span's pro¬

vision of

a

maximum

amount

of unobstructed in¬

terior area—in the Mart's case, over 91,000 square

feet...
nesses

enough for the

that make it

shopping
Second

center.

was

an

than 70 retail busi¬
outstanding service and

more

'

construction

application—farm, industrial, or com¬
readily as it did for the Meadowbrook
Mart. Straight sturdy sidewalls and arch roof give
a maximum amount of unobstructed
space. Arch
ribs and trusses of famous N-A-X High-Tensile
Steel make for long life, strength and economy.
or

any

All-steel
costs.

Long-Spans

go

rapidly and easily, so the owners made appre¬
ciable savings in time and money by their choice.
up

buildings

are

but

one

of

many

corp

»«dsofNationa|s^o„s

National

Steel

products that serve many industries in
many ways . . . that make National Steel
one
of America's leading producers of steel.

STRAN-Srtfl DIVISION

Stran-Steel

NATIONAL
v

GRANT BUILDING

SERVING

AMERICA




CORPORATION

STEEL

BY

W

SERiVING

PITTSBURGH, PA,

AMERICAN

NATIONAL
STEEL

INDUSTRY

18

The.Commercial and Financial Chronicle... Thursday, June 17, 1954

(2670)

or

the

The Downward Slide

different

not.

positions

different

by

Has Been

considering recommended and adopted modi¬ equipment expenditures and the
occupied fications for loan and insurance high level of activity on the stock
market.
Confidence on the part
businesses at any programs. In many ways where

Indeed,

yet

administrative rules and decisions

given time in a business cycle, it
is impossible to call the turn for

Stopped!

businesses

all

at

By WALTER WILLIAMS*

ministration i> doing a

Liquid Hoid'ngs of People

Under Secretary of Commerce

the

made,

private economy is teing assisted.
In a word, the Eisenhower Ad¬

time.

one

any

and

adopted

be

can

thorough¬

going job of assisting: in thfe'-creThe second area of oppor¬
ation of an economic climate-detunity is to be found in the enor¬
signe-l to stimulate t e expansion
mous reservoir of liquid holdings
?nd benefit- ro ucing nature of
on the part of our people.
As of
our
economy.
December 31, 1953, the net amount

(2)

Commerce

conditions

asserting

executive,

Department

are

the
nation's history, claims that the present Administration has
straightened out the economy appreciably, and the downward

ripening for the greatest period of economic expansion in

slide has been

i i

stopped. Points out industrial production, store

sales, prices and personal incomes, as well
activity and

i

construction

as

business orders, all have upheld well in the

new

Cites

present adjustment.

other

economy.

Why is there so much "Potential
Opportunity" for sales executives

have

where is it? Let me
briefly by pointing out

stead

today

and

answer

six

basis for

of you in¬
terested in the
promo¬

in

lion

an

There

at

Williams

riod

barometer

Slichter

Sumner

believes

who
turn

not
Dr.

turn

of

is

those

of

one

the

(that

Dr.

now.

business

business

the

of

of

for

reason

"new

durable

by manufacturers

in

increased

goods

MJarch and' April from the rela¬
indeed already turned upward. tively low rates of earlier this
Arthur F. Burns, Chairman year.
*
'
Council

stated

Ad¬

Economic

of

his address de¬
livered at Columbia University on
May 26: "Taken all together, the
outlook for early recovery, there¬
visers,

in

fore, seems favorable, and the
business-cycle policies pursued by

government seem to be work¬

ing out reasonably well."

To be
conservatively
adds, "but, history carries a stern
warning on how easily economic
developments may be misjudged."
Burns

Dr.

sure,

The

figures

.

Key Barometers
Whether

the

been made

or

whether

proaching' it,

we

are

ap¬

objective

calm,

a

already

analysis of key barometers meas¬

uring the condition of business
giv(es much reason for solid en¬
couragement.
Industrial

production shows up
particularly encouragingly. Start¬
ing at

figure of 137 at the peak

a

in July, 1953, this index has

stead¬

until it hit
123 in March of 1954.
Then, in
April for the first time, it stopped

ily

downward

gone

sliding

downward, remaining at
the
same
figure as for March,
namely 123. Significantly, the in¬
dex for May is expected to be at
this

figure, 123,

same

or

perhaps

point higher.

and neto

expenditures still re¬
main encouraging.
Business con¬
tinues to invest in new,> produc¬
equipment

tive facilities at near-record rates.'

and
equipment expenditures shows
latest

The

of

survey

plant

spending in the current quar¬
is within 5% of the high rate

ter
a

Investment is partic¬

year ago.

ularly strong in the public utility
commercial fields.

and

inventories

being reduced.

This is in contrast

to the substantial accumulation in

the second quarter

of 1953.

tion thus far this

quarter is

Department

during the pre¬
vious quarter. The head of a very
large national retail distributing
organization recently stated that
whereas
hand

had

their

of

sales

gone

stocks

a

they

buying from their

were

pace more

rapid than

would
or

,

very likely
be buying at
perhaps greater than the rate

at

which

their

sales

had

sales

store

have

May sales being

70.9%

of

rated

capacity

week ended June 5.

Remember,

average.

that the March-April

too,

figures

cov¬

buying period.

To

be sure, May sales were about 6%
year

ago, but let

forget that May of last

showed sales at

have

Prices

a

commodities

year

peak level.

held

prices

us

(

favorably.

of

industrial

higher

A

than

This is about

today would not, perhaps, indicate
any
crystal-clear, sharp upturn.
the

But.

same

analysis

This
•An

liams

the

recent

adjustment
address

before

adjustment.

would

certainly

by Under Secretary Wil¬

the

National

Sales

tives, Chicago, 111., June 4, 1954.




Execu¬

calm, dispassionate

would

quite con¬
clusively to indicate that the rate
decline

of

cast

a

seem

has

sharply ' lessened
flattening out process

replaced

in

quarter

for the first

Fjgures

show

1954

of

this

that

savings rate jumped to 8.0%. Now
this

fine

is

in

It
thrifty

respect.

one

the

steady decline
No one can fore¬
events, but on balance, there
July, 1953.

would

seem

to be

strong

reasons

for feeling that a

from

Europe

now,

the

United

States

econ¬

cold, the European
economy does not necessarily
catch pneumonia."
(5) An important area relating
to
the
opportunities which are
catches

a

is to be found in the oft
repeated
statements
concerning
the
g.-owing population of our
in the sense that it shows that
country and the steadily increas¬
our people are
putting their sav¬
ing rzte of productivity of our
ings away instead of buving; the
.economic machine.
There is no
thirgs that yon and voiir' s°les
denying that both of these factors
shows that
and

couM

to

them.

is

mists

around

rate of saving.

tory

of
in

sclid reason for optimism,
particularly on the long-pull basis.
However, may I bring to your
attention one aspect of the fac¬
give

question
econo¬

among

aopropriate

It must be

remem¬

what

to

as

the. correct

cf savings, should

However, in
sion

of

this

preserve

to

offered

was

right.

nerhaos
fact

that

Whether
not

7.2%

important

1952

this

of

cance

who

are

isn't

has

high

rate

to

to

much
take

at

What

getting
more
rapid

a

Are

United

of onnortu-

the

under

pbPosoEisenhower Admin¬

policies

of the

phies

istration

is

this

to

go

in

sort

and

strengthen
This, I think, is no
into a discussion of

doing

the economy.

place

Government

States

to

detail.

Sufficient

to

however, that by sound budg¬

etary policies, enormous tax sav¬
ings have been made ppssible for
the people of America. The stag¬
gering figure of between $7 and
$7V2 billion will have been made
available
to
the
people of the

has

been

needs

of

policy

a

adequate

an

designed

supply

several

last

following

maintaining
the

the

money

provide

to

of
for

growing economy.

a

The Administration has embarked
uoon

a

program

of reformation in

the tax structure.

This is particu¬

larly significant and
aside

from

the

tions alone in

intelligent

is anart and

matte*-

taxes.

effort

of

reduc¬

There

being

is

made

however,

worse,

look

a

the

Ft

These

They
when

we

conditions

in

in

an

to

ple

Russia

graduating
not

of

from our institu¬
learning in Amer¬
too
much
greater

those

than

reported to be grad¬
uating from institutions of higher
learning

Russia.

in

is

ever.

where

the

the" percentage

Russia,

how¬

Here,

rub

comes:

in

those

of

in
science, research
engineering is nearly 50%

graduating
and

above those

research

to

of

of

do whatever he can
a larger percentage

you

encourage

school

high

the

would

I

in this discussion
most respectfully that

pause

urge

each
to

schools.

American

our

like
to

graduating in science,
engineering \from

and

America to enter

graduates

our

of

universities

the fields of re¬
search, engineering and science.
In the waging of the cold
war
where technology will play such

and' colleges

an

in

important

outcome,

we

creasingly

part
must

large

in

final

the

have

in¬

an

of

number

The sixth and final

upturn

itself

as

has

to whether

actually

the

come

there

be increased incentives, thus

The

economy.

Administration

also

which

tunities

the

for

#

of those oppor¬
exist today.

hold

seizing

by

economy

American -citizens

NYSE Golf Tourney
To Be Held June 22
the

Stock

York

New

experts and/or hackers

350

some

the

scheduled to participate in

are

Association
As

that

Tournament of

Annual

55th

of

Exchange

announced that

Association,

Golf

Chairman

Picoli,

C.

Robert

Tuesday, June 22.

on

annual

the

usual,

tourna¬

has

Mamaroneck, N. Y.

Among the prizes to be
to

the

atmosn'-ere

prevails
may

be

cf 'confidence

which

today.
This confidence
measured in t^e invest¬

ami

lucky

Silver

Sterling

the

is

coveted

awarded

skillful, the most

or

Tray which the Association pre¬
competitor turning in

sents ti the

year,1 John Munroe, at
Co., carded a net of 66
win the tray.
Edwin H. Cran-

Last

business world

&

Bache
to

Williams; & Co.,

dell, of Blair S.
had low

gross—74.

Harold
the

W.

Board

Chairman of
of the

Scott,

of

Governors

Exchange,, and
Exchange Presi¬
dent, will be guests of honor.
York

New

Keith

Stock

Funston,

Other

features

tournament

the

of

all-day

tennis and a»

include

golf exhibition by prominent pro¬
fessionals at 5:00 p.m.

Cluett Co.

To Be Burton,
Effective

of

name

120

Broadway,
of the

Exchange,

firm

the

Cluett & Dana,

Burton,

members

30

June

City,

York

New

New York Stock

will

changed

be

to

Burton, Cluett & Co.

area

ing the Irgh level of construction,

hairs

that

all

of

New Branch Office

of
ooportunity is to be found in the
(6)

free-enterorise

split

recasting of

so

American

the

benefit

men

ment

may

structure

can

trained in these fields.

stimulating the expansion of our

to

tax

forts,

peo¬

haps relatively immaterial to try

our

You, by your alert ef¬
not only benefit for
yourselves and those with whom
you associate,
but you can also
do
much
toward
strengthening
economy.

low net.

numbers

the

tions of higher
are

compared

nro0""01!!.

ou'vi

ica

as

at

commences

the

are

good, solid bot¬
tom is being laid for a renewed
rise in business activity. It is per¬

least

greatest expansion period
history of the American

the

in

the

in

1954.

in

bad enough.

Actually

nity is to be found in the job that
the

are

with

Po'bics

area

universities

and

engineers

Doin?

(3) The third

startled
whereas

f*e field'of training scientists and
■-

Eisenhower

be
that

will

learn

assembly .line

figures

reservoir is enormous and

day. '

be

ment,
and
the annual golfers'
1950,
only
19,000 dinner that same evening, will be
graduates are coming off held at the Winged Foot Club,

such
the

organization of Amer¬

enormous

rosy-hued optimist to

a

recognize the fact that conditions
are
ripe, or at least getting ripe,
for what will doubtless prove to

gineering^' in

the

rate every

nor

anna

realm of science, research and en¬

ica, is the fact that the purchasing
more,

trying to point out to you today.
One does not have to be a Polly-

be to pro¬
productive
welfare cf our

had 52.000 graduates from our

coheges

you

of

great sales

Sales Executives have
today, and it is these opportuni¬
ties
which
I have really been

it

no

You

sure

am

we

The signifi¬

.representatives

-

involved.

the

in

is

I

is

as the
jumped

8%

to

se¬

of the very important factors

one

might be

or

opportunities

really

is

it

that

close by reminding you

me

which you

more

t'm

for

national

denying the
fact that improving technology is

suggestion

is

-

stronger,

it

W-ether

our

whether

or

a

people, ' there

5%%'

rate

in

vide

economy

the

it

so

the

that

curity

rate

recent discus¬

one

Executives"

Sales
Let

and

careful

ycur

-.

consideration.

be

be.'

sort

in¬

with

do

to

sober

plant, etc. There is probably
way to get-at any accurate an¬

ho

have

have

should

new

swer

"Never So Much for So Many

creasing productivity which

order to

provide funds
investment in new machinery,

for

that

tors

that a satisfac¬
of savings must

course,

percentage

had

be

ours,

be seeing

the

Sometimes

to what is the

as

bered,

shotd^

and

kicked

are

But it is not fine

saving.

are

f'orce

people

our

over

since

factor

7.3%.

was

steady

was

"Europe has found that just

because
omy

The Federal Government

has

above a
year ago.
The strength of prices
has undeniably been a favorable

sonal

decline. Test for
yourself the change of sentiment
showed

because

what

to

as

return

way:

of savings

months.

upward since the beginning of the

slightly

imprbve.

us

figures

not

and

barometers

business

other

and

#

rate in recent weeks and
months.
Indeed, one very well
informed
economist put
it this

good. In
of disposable per¬
income was 7.2%. In 1953, it

good

of concern as unem¬
figures were mounting

heeling

a

ployment

rapid

the savings realm which are
rate

psychological sentiment today as
with let' us say six
months ago..
Them there was a
sense of anxiety; then there was
compared

point out that Europe's economy
has
been
booming ahead at a

take a
in
both
1952, the

power, let
certain other

at

who

country

firm while farm prices have tended

level

purchasing
look

-

of consumer ex¬
penditures.
Each of you can, I
am
sure,
from his own experi¬
ence
note
the sharp change of
level

of her priate, therefore, that it be listed
going as one of the solid planks upon
to happen to the American econ¬ which we may begin to build new
omy? Well-informed students records.
panic

on

concern

potential

of

|

■

e

dering

analysis

that

a

Mid-April

dispassionate

and

to

in

enor¬

of the various business barometers

calm,

continue remarkably

year

the

for

reservoir

large

say,

when operations began to

ered the Easter

this

been

running.

April,

Wholesale

sup¬

pliers, he forecast that "within
approximately 30 days" his firm

4%

not

on-

several

for

on

months at

2% to 3% higher than the March-

a

some¬

what greater than

Steel production is scheduled at

held up well with

lower than

It now

that the rate of liquida¬

appears

held by

the

talking about

we are

first quarter of 1954.

still

are

of

Think

Now while

from

Reduced

Being

a

purchasing power wrapped
up in this gold mine. Incidentally,
too,
you
may
be interested to
know that this staggering total of
liquid assets gained approximately
$11 billion during the year 1953.

that

Business

has

turn

.

plant

on.

Inventories

a

New

encouragement.

orders received
of

The

boom.

upward is imminent if it is

the

the

is

orders',I gives

,

of

This

year.

heading in to -the peak pe¬

were

the turn in the business cycle has

already been made or that we are

point

this

just slightly below the correspond¬
ing period of a year ago when we

those who think

are

the first

annual rate in

an

months

four
Walter

ba¬

rometers to¬

the

unusually

an

In May total construc¬
activity stood at 4% above
May, 1953. Non-farm new housing
starts have averaged over 1.1 mil¬

analysis of the
business

at

been

tion

of oppor¬

day.

at

has

high level.

tunity is to be
found

activity

people.

i

by

reflected

is

consumer

high

potential opportunities which
those with
whom you come
up t~> the a'ert bu H^s-nan of
contact, today
as
compared
today
relates
to
conditions
in in
Europe.
Do you remember only wit'^ the sentiment as expressed
a
few months ago when expres¬ by those same people a few
sions
of anxiety and
misgiving months ago. Confidence is a basic
were
drifting across the ocean factor, and in view of the changed
indicating that Europe was bor¬ degree of confidence, it is appro¬
f

mous

the

along

roaring

(1) The first
area

was

slightly

Construction

field:

tion

April

high annual rate of $282 bil¬

a

July has only been 2%. With
taxes, disposable personal
income has
been
virtually un¬
changed over this period.

each and every

-

in¬

lower

to

one

sales

in

income

if

last

oppor¬

mous

of

Personal

lion,

enor¬

tunities

severe

declined sharply
remaining firm.

However,

the

provide

more

down from March.
total reduction in
personal income since the peak of

which

areas

much

means

billion of net liquid assets
our

had

prices

at

different

been

This

securities."

J

v;

the

the

open

grand total of approximately $500

Stresses current large reservoir
of liquid holdings by the people.

tivity of the national

•

A fourt.: rre? bearing upon

(4)

personal holdings of what
economists
call
"corporate
and

growing population and the steadily increasing rate of produc¬

European Conditions Improved

i

to cover

factors for optimism the nation's

as

liquid assets held by American
citizens was just under $300 bil¬
lion. To this enormous figure must
be added about $200 billion more

of

of

by

not¬

fhe high level of plant and new

Va.

ALEXANDRIA,

Jones,

—

Kreeger & Hewitt, members
New

York

opened
South

a

Stock

of the

Exchange, have

branch" office

Washington

Street,

the management of Oscar P.

at 130
under
Ryder.

Volume 179

Number 5334

..

The

Commercial and Financial Chronicle

(2671)

a

v-

'■

*

'

<•

Hi
r<

\\

X

"y I

I

.4

>T1

In that period the United States
has produced in Socony-Vacuum
alone

more

than 900,000,000 barrels '

of crude oil. Had
rest

on

our

we

been content to

oars, we

would,

now

be

out of oil.
we

drilled

Instead, during the
this

almost doubled

great

more

we

Socony-Vacuum's do¬

mestic oil reserves,
at

years

distance,

which

now

stand

than 1,650,000,000 barrels.

SOCONY-VACUUM OIL COMPANY, INC.




Makers of Mobilgas and Mobiloil

v

I

"20

The Commercial and Financial Chronicle...

(2672)

Thursday, June 17, 1954

Municipal Bond Club of New York
;

Holds 21st Annual Field Da-' June 11th

■*>.,.';

(Front
The

row)

Bond

<h

•'

'

-;

Richard

v". %.

'•

N. Rand,

■

v' *

„

~

iV

Rand

Albert J. Milloy,
H. Mears, Chemical Bank &

William

Buyer;

(Front

Co.; Gil White, R. D. White & Company, William T. Hall,
The First Boston Corporation; Bill McKay, The Blue List;
Trust Co. (Rear row) Robert V. McCarthy, The First Boston

&

row) Robert M. Goodwin, National City Bank of New York; Jonas C. Andersen, Kuhn, Loeb
Co., newly elected President of the Club; Myles G. Walsh, Blyth & Co., Inc.; Field Day Chairman;
C. Patterson, Chemical Bank £ Trust Co. (Rear row) Robert R. Krumm, W. H. Morton A

&

Donald

Co.,

Corporation; Kenneth J. Sickler, Chase National Bank of the City of New York; Charles C. Horton,
Wertheim & Co.; Harold Young, Equitable Seeurities Corporation; David H. Callaway, Jr.,
First
of
Michigan Corporation; William F. Dore, Halsey, Stuart &
Co., Inc.
1

Incorporated; James
George B. Gibbons

Sanders

Golf:

Sports Winners al Municipal Club Outing
The following are the results

in the various activities and sports events at the

Ransom, Harris Trust &

M.

Members

page

the

of

6

however, that in this emergency
it was vitally necessary to fulfill
basic military requirements.
It

political decision to
butter-and-guns battle,

was

fight

a

a

superimposing full civilian re¬
quirements on top of partial mil¬
itary
or
mobilization
require¬
ments.
not

basic

This

decision could

help but dislocate

ical

market

present
certain

some

chem¬

balances, resulting in

day over • expansion in
capacities. A few exam¬

ples are in order. The total ca¬
pacity in the United States on
Jan. 1, 1951, for toluene was 83,000,000 gallons. The goal estab¬
lished
for
1955
was
185,000,000

gallons.

The February, 1954,

duction level
lons

annually.

benzene

pro¬

120,000,000 gal¬
The capacity for

was

manufacture

on

Jan.

1,

1951, was 215,000,000 gallons. The
goal established for 1955 was 375,000,000
gallons.
The
February
production level was 235,000,000

gallons annually.
well known to

definite

are

for

these

even

as is
of you, there

marketing problems

two

was

February

pounds.
on an

472,000,000 pounds.

organic chemicals,

in advance of the attainment

"of production goals.

Fortunately,




of

oper¬

The goal

marketing problems stem

production of TNT
synthetic rubber.

Grouping the goals for inorganic
solids and

January,
tons

liquids, the capacity in
was
26,433 short

1951,

per

with

year

a

goal estab¬

lished for 1955 of 34,812 short tons

Cabinet

of¬

would

to

treat

one

pf the problems en¬
countered during the expansion
period. I do not believe that any
some

chemical has caused
litical

furor

concern

gen.

I

and

would

Congressmen
the

urea.

This

as

as

estimate

on

much po¬

inter-industry

since Korea

know

of

nitrogen

is

the

in

agricul¬

Despite the Presi¬
because .of the
hydrogen bombs, that

assurance,

future

any

denied, one of which was for
Rocky Mountain State. There

a

numerous
calls similar ; to those reported by Secretary Ste¬
were

has nitro¬

half

Capitol Hill

chemical

is also

formula

I

would be

war

short

a

ture refused to look at the soil

the

as

at

Department of Interior looks
petroleum. They did not and

do

not

feel

pendable

the

soil

natural

to

correct.

of

be

in

Ideally, they

Amidst

which

arguments

ex¬

to

depleted

times of emergency.
are

an

resource

temporarily\

even

be

the

myriad

have

taken

place
and

among NPA, DPA, BDSA,
ODM, the Department of Ag¬

riculture
tilizer

adamant

was

requirements

military

that

are

a

fer¬

true

requirement.

Actually,
the total direct munitions require¬
ments of nitrogen are compara¬
tively insignificant when consid¬

the
now

for

probably true

the

Under

It

sion

expan¬

goal, when military and in¬
requirements were com¬

dustrial

puted for total mobilization, agri¬
culture
times
at

as

still

had

more

than

two

much nitrogen available

as

the

peak of World War II.

you

that

what

some

pressures

Co., Cincinnati; 2nd—

Hattier

White,

the

was

in the
out

Chemical &

Rubber

country to maintain

more

at the

and

war

than

meet

a

same

all-

an

time to

Spartan

type

of

existence, further expansion
should be industry sponsored. It
was, and is, their feeling that any
further government sponsored

pansion

was

This

New

Sanford,

&

knowledge,
100% of
capacity and recently has been
shut down. The price of chlorine,
I am sure, has not been rising in
the past 18 months. But the Army
is insistent that this plant be sold

has

leased

or

intercession in

a

ex¬

nor¬

to

plant,

nry

operated

never

able

Division's opinion that, since suf¬
ficient nitrogen capacity existed

be

and

chlorine

at

operated to en¬

availability

at

a

classified plant.
Despite
the Chlorine Industry
Advisory
Committee's assurance that suf¬

nearby

ficient

capacity presently existed
Army's complete de¬

to insure the

mands, and despite the industry's
assurance that, in event of emer¬
gency, top priorities for this in¬
stallation

would

full

enable

ca¬

pacity operation, bids for the plant
were

invited.

I

am

not

sure

of the

growth pattern. As is obvious,
they lost, and additional! certifi¬

present marketing position of the

cates

Tennessee, Arkansas, and Virginia,

mal

of

necessity

for

nitrogen

expansion will be issued shortly,
one

of them

Mountain

probably in

a

Rocky

of ammonia in

1,774,000 tons.

The

new

1951

goal

but I

producers

goals is the chlorine industry.
capacity in the country

Chlorine

Alabama,

lems will not multiply as a

result

entry of this new produc¬

tion.

Another example are

During

production
cause

was

chromium
annual

1951,

127,600 tons. Be¬
anticipated mili¬

of this and

tary requirements, a goal was set
for 1955 of 150,000 tons.
Using

of January 1, 1951, was 2,180,tons. A goal of 3,420,000 tons was

February

established

as

in

hopeful their sales prob¬

am

chemicals.

3,500,000 tons.

Another specific example of
problems that have arisen because
of

chlorine

of the

State.

Production

is

next-to-last

assure

develop.

can

ered with the total needs of farms

industries.

can

understand

ment

the Department of Agricul¬

one,

'

Ward, Chase National Bank.

former representatives in govern-^

of

these goals specifically to indicate
to you

Hattier,

vens.

and

like

yards—Gilbert

certificates of necessity which had

was

per year.

I

States

atomic and

from decreased
and

264

Nearest Pin: 7 ft.—John

consumer

United

;

2nd—Edmund C.

Co.;

&

.

well known fact that the

a

Loeb

1st—John Joseph, John E. Joseph &

dent's

established for January, 1955, was
1.21
billion pounds.
These par¬
ticular

Kuhn,

Fitterer,

tural industry.

annual rate basis

Currently,

some

the

majority of expansion took
place in the petrochemical indus¬
try.
These chemicals can, if
necessary, be
diverted to other
products within the refinery. The
styrene capacity in 1951 was 626,000,000

Co.;

&

Cafone, W. E. Hutton & Co.; 2nd—Edward

been

largest

the

ating level

Loeb

Orleans.

majority

It is

It must be agreed,

1st—Thomas

1st—John

Gross:

Drive:

ficers.

Chemical Marketing Problems
In Defense Market Research
departments.

Kuhn

Thornburgh, W. C. ThornburgK Co., Cincinnati;
Cook, Wm. J. Mericka & Co., Cleveland.
"
v

Longest

1st—Wm.

from

Fitterer,

Cafone, W. E. Hutton & Co.

Guests Low Net: 1st—Robert W.

Mueller, Halsey, Stuart & Co. and H. Grad.y Wells, An¬
Wells; 2nd—W. H. Morton, W. H. Morton & Co., Inc. and George WaldMercantile Trust Co.

Continued

Trophy—John

Jr.,

Allyn, A. C. Allyn & Co., Chicago.

2nd—R. J.

&

mann,

Net:

Low

Guests Low

John

Wells, Andrews & Wells; 2nd—Dana. Scudder,,National City Bank of New York, and
Zack Taylor, Chase National Bank; 3rd-^Hatold Young, Equitable Securities Cor¬
poration, and Paul Wolf, Harris Trust & Savings Bank.

drews

Trust & Savings Bank; George B. Gibbons,
H. Grady Wells, Jr., Andrews &. Wells, Inc.

Byrne, Byrne & Phelps; 3rd—Howard Finney, Bear, Stearns & Co.

Grady

Tournamen^t: 1st—George Barnet, National City Bank and H.

Horseshoes:

Inc.;

Memorial

Shanks

Members Low Gross:

Harris

Cobden, Kean, Taylor & Co.; 3rd—George Hamilton, Jr., Dominick & Dominick.

Savings
Bank and Andrew Dott, J. G. White & Co., Inc.; East-West—Dave Kales, Wood,
Gundy & Co., Inc. and Edwin Sunderland, John C. Legg & Company, Baltimore.
Bridge Tournament: North-South—James

M. Ransom,
& Company,

Governors Trophy—Thomas

Municipal Bond Club of New York Field Day last Friday:

Tennis

i

as

index again, the

an

present annual production rate is

for 1955; present op¬
erating level is an annual rate of
2,700,000 tons. A large share of
this production was instituted as
a direct result of military
require¬
ments.
One of the plants con¬

87,000 tons.

this, USD A insisted
upon
a
re-expansion, increasing
agriculture's requirements to that
of "total mobilization," which re¬
quired a 10% increase in supply.
At

structed

Rubber

Despite

this

time there

were

several

was

at Muscle

Shoals, Ala.

The Problem of

Avoiding

Overexpansion
An item of

be

of

underexpansion may

interest.

The

Division

of

Chemical^ &
NPA

recog-

Volume 179

Number 5334... The Commercial and Financial Chronicle

nized that the nylon type of ma¬

terials' were' vitally: necessary "to
defense / effort.. Elaborate

supply-requirement studies were
made, which indicated needed ca¬
pacities exceeding those of plants

at

Halsey, Stuart Group
Offer Central Illinois

the

under

construction

or

existing.

One factor the Chemical & Rubber

Division

had

however,
are

failed

direct

a

skirts.

skirts

of

the

representa¬

southern states quickly

our

picked this fact
that the

recognize,

nylon

competitor to cotton

Some

tives of

to

that

was

and

up

assumed

capacity remaining after

the Korean crisis would be avail¬
able for skirt manufacture.

Only

expansion for- direct Military use
thereafter approved.
is my opinion the benefits
evils Of the expansion goal

was

It
and

program of the Korean crisis will
not

be

the

tax-amortized

fully realized until all of

into

come

being.

problems of
chemicals

some

will

facilities

have

The marketing

Halsey,
June 15
for

Stuart

&

Co.

Inc.

on

$u,000,000 Central Illinois Pub¬

lic

;

from? 102.13%

Resident managers of the

Davidson Forms New

"

•

Illinois

Public

Service

Co., is engaged principally in fur¬
nishing electricity in 61 counties

the successful bidder

was

100%;
Central

] Public Service Bonds
,

prices ranging

to

.

Service

Co., first mortgage
bonds, series F, ZVa%, due June
1,1984, naming a price of 101.65%.
The bonds are being offered pub¬
licly at 102.25% and accrued in¬

in the central

and southern

parts
in

of

Illinois; it also furnishes

12

S. F.

of these counties. For the year

Shields,

Exchange Firm

Jr., Fresno;, William V.\
Warner, Modesto,- and Glen* H.
Nielsen, Visalia. All are former |

;

members

SAN FRANCISCO, Calif.—Dis¬

/

gas

solution

of

the

firm

of

Davidson as of May 28 and the
1953, about 91% of its total op¬
formation of Davidson & Co. has
erating revenues was derived from
been
announced
by H.
Dodge
the sale of electricity and about
9% from the sale of gas. Among Davidson, general partner of the
new
firm.
Limited partners are
the larger cities in the Company's
H.
Wilsey and Alfred S.
service area are Quincy, Mattoon, John
Wilsey of the Wilsey Bennett Co.,
Canton and West Frankfort.

from-the

used

fmance

1954 construction program.

The

able

V

With Sutro & Co.
(Special to The Financial Chronicle)

SAN

Lee is

at

prices
ranging
from
105.25% to 100%; for debt retire¬
ment purposes only they may be
redeemed, beginning June 1, 1958,

Calif.—Foo
407

FRANCISCO,

with Sutro & Co.,

now

Montgomery

of

members

Street,

ft® ,N®%«Xqr& And £an,Francisco
A'

1

The

.

firm, member of

the

•';

San

Francisco Stock Exchange, with
FRANCISCO, Calif.—Ed¬ offices in Modesto, Fresno and
ward A/ Loughrey is now with Visalia, will do a general investment and brokerage business, inEdwin D. Berl & Sons, 333 Mont¬
eluding municipals and corporate
gomery
Street, members of the
underwriting and private placeSan Francisco Stock Exchange.
ments.

With

(Special to The Financial Chronicle)

SAN

bonds will be redeem¬

new

Joins Edwin D. Berl

a

part of the cost of the Company's

Bailey & David-5

Exchanges.

%sajet of. the\

to

of the

staff.'

son

Bailey &

»

Proceeds

firm's

be Harvey-H.

valley officer-will

terest.

bonds'Hviir be

21

(2673)

Cosgrove, Miller

(Special to The Financial Chronicle)

FT.
A

'

LAUDERDALE,
,ir

.

,

,

Fla.

.

Adrlan G; Wynkoop is now connected with Cosgrove, Miller &
Whitehead.

of these 60 goalbe
considerable.

Some plants will not be operating
at an efficient and low cost
pro¬
duction rate.
facilities.
am

This

its

this

diversion of

growth

average

chemical
to

some

dislocation

will, I

be only, temporary since

sure,

on

The net result of it

possibly be

may

excess

five years.

the

curve

industry will

catch

up

capacity in two to

Some of the 60 chemi¬

cals, of course, will not be affected
by decreased military consump¬
tion. Those that

require

firm,

thorough

The

basic

evil

sary

and

Both

the

quirements

are

goals,

for

plants

building.
mcnts

The

have

survival,
hard, real

Korea

were

neces¬

military

forecast up to 1955.
new

and

research.

this

of

national

was

In

selling

market

cause

politics.

facts.

will definitely

are

imaginative

had

re¬

been

On this basis,
built

and

military

are

reouire-

substantially

dimin¬

ished.
•This

have

in

means

excess

certain

capacity.

lines

The

we

answer

16 this is imagination and aggres¬
sive selling.

•The picture is not quite as b]eak
it sounds. The.styreneindustry

as

faced the

problem when the

same

rubber plants were shut down af¬
ter World War <11.
to

Styre^e began
in fishing tackle boxes

appear

and Christmas tree ornaments. The
net-result

was a shortage and talk
increasing capacity. It's been

of

done before and

can

be done

again.

N. Y. Mimic. Bond Club
Elects Officers
■

•

s-

.

..

i

•

...

_

Jonas C.
&

Co.,

Andersen, Kuhn, Loeb

was

elected

President

of

the Municipal Bond Club of New

HYPO
'

FOR

HYBRIDS

V#'
1

--

i

To

give nitrogen-hungry

corn

and other

realize

the

crops

plant food that boosts yields and improves quality,
today's farmer is relying increasingly
ammonia. Ammonia not

with

crop

an

on

foods

anhydrous

•

,

One of the most economical

Bank

and

Trust

J.

easy

Applicators, mounted

was

on

tractors, inject ammonia

into the ground. Here, the

gas

stantly with clay particles in the soil and is released

*

'

Geer With Laird & Co.

■

Nitrogen at low cost through

*

Laird &

the

New

announce

has

Company, members of
York Stock Exchange,
that

become

firm

as

of

the

ways

ammonia

is but

&

ti n

associated

with

A'W.

within

same acreage

1
•

•

CHEMICAL CORPORATION
Baltimore

in which Mathieson helps farmers

3, Maryland

the
1

&q*I

-pi




vkUUjH

'

; • "
ALKALIES

Id
(loi'd'TiCi

"

"

York

c.-J<'oli

iZ'mx&i'.)

bigger harvest. Com¬

problem of providing food for

generation.

MATHIESON

one

■

ACIDS

•

1 u

•

'

i

•

AMMONIA AND NITROGEN PRODUCTS

.

FERTILIZERS

.

AGRICULTURAL SPECIALTIES

>

v
i

to the

Manager of "the Research

Jit

r

,

Ralph W. H. Geer

Department, in the New
office, 61 Broadway...

v"

yields during dry

gradually to meet the needs of growing plants.

'

1

im¬

insecticides, herbicides,

assure a

•

noot, Treasurer.

crop

an

n

..

people from the

more

the next

available. forms.

good farm management, chemicals hold

combines in¬

gas

Dalton

i

Mathieson

fungicides help

answer

25%

1

.

And

to apply.
the

Com¬

highly

portable irrigation systems play

.

weathei.

crop.

of plant-food

sources

nitrogen, ammonia is also quick and

elected Vice-President;
Couig, Hirsch & Co.,
Secretary; and Joseph H. Vander-

pany,

the next

supply the major plant

concentrated,

bined with

York,
succeeding
Thomas
F.
Adams, Adams, McEntee & Co.,
Inc.
Donald
C.
Patterson, The
Chemical

on

and

C. Andersen

Jonas

effect

fertilizers

portant part in increasing

abundance of nitrogen, but provides

carry-over

in

Mathieson

only furnishes his current
<

exceptional

from their land. Mathieson's modern

more

Ammo-Phos®

i'

■Mp«i

.iJA

*. I

{'

Od'
.....

(,■

V
t

,

n: *•>'.
..

/,'■><'

■■

.Jil'il.i

f. 1

cc '} »;•
,
v.v

<

(,'Jt't -V

It

■b i* -v )j,$j
.
—

r,yfc

'i 1

r

•:,.nr
.

-

.

J ''

(

vt

i.

•

ETHYLENE OXIDE AND GLYCOLS

.

DRUGS

'.it.

n;.

;•(.

.

2249-A

PHARMACEUTICALS

'd

\

,y i"

t'A *

i

£

-

"

i

f

)

3

f.

Lsa;

i»<*

:-j;it1.

h

)

1

»r:

'i

-ii-

-fit

lw

*"

i

.

...

it,

dli

-it

•-

.

isc-u'

.

.♦

t)

22

its

increased

has

NEW BRANCHES

/

REVISED

Bankers

and

OFFICERS, ETC.

employ

*

ft

CAPITALIZATIONS

operations

■

% DeWitt

A.

Vice-President

of

City

New

Bank

awarded

of

York,

Appointment of Walter R.

in

the

aviation

section

Army Signal Corps.
the bank

to

became

in

In
of

being

Board

Forward

is

New

of

ffi

New York

ward
Mr.

in

Bank

ft

Hanover Bank,

With

been

has

1930

in

ginia

the

Alabama,

Bank has

ident

Mr.

$

of Savings Banks Trust Company,

A 11 i s-Chaimers

pointment of Mr. John J. Duggan,
Jr. and Mr. Philip O. Roberts as

New

Company,

the

announced

York,

Corporation, and Boeing Airplane
Company; a member of the Asso¬

Assistant Vice-Presidents.

ciation

ings Banks Trust Company since
1943 specializing in public utility

of

Reserve

the "American

City Bankers,

Institute

of

Bank¬

ing and the Academy of Political

Mr. Duggan

the

Mr.

Forward

is

Committee

Bank

Savings

pany

in 1944

The

of

Associa-' dustrial

tion of Reserve City Bankers and
has served as Chairman of the

Association's Committee
Credit Policies.
a

member

the

Commission

of

Credit

was

York.

Bank

Chairman
Trust

&

York

banking of¬
Ave.

June 16, N. Baxter

on

of

Chemical

Company,

New

announced.

34th

Street

Chemical's

pecially

and

Fifth

designed

"to

through
Bank

was

The

Bank features

new

30,000-lb.

first

installation

size

in

the

of

world.

a

its

one

The

which

bomb

blast

withstood

the

Fifth

Avenue,

ferred

to

at

the

29th

which

Street
was

and

trans¬

location, are:
Winger
(Chairman),
George
E.
Allen,
Charles
E.
Baldwin, Jr., Ralph Dudley, Ken¬
neth W. Fraser, Kerwin H. Fulton,
Gale F. Johnston, David H. Marx,
William A.. Murray, William H.
Pouch, Vincent C. Ross, Eugene A.
Schmidt, Jr., and Robert D. Wil¬
liams, Jr.
Albert

one

in

bank
being

He

age.

he

was

Jan.

on

followed

was

3,
by

First Vice-Presi¬

1928.

trustees,

officers and staff

Roosevelt

Savings

monial dinner, June

Bank

a

testi¬

17.

Chemical

of New York's oldest

.

North ville

Bank,

N or Hi -

absorbed by

was

The Fulton County National Bank
and

Trust Company,

New

York,

effective

branch

was

former
.

Gloversvillc,

location

June

established
of

The

1.

in

A
the

North-

ville Bank.
i'i
i

!

Stockholders

$

is

of

Bank

First Na¬

to the

1

Cam¬

Cambridge,

of

Hartford-

the

Connecticut Trust Company, Hart¬

Conn,

State

Bank

and: of
and

the

Trust

Phoenix

Company,

Hartford, Conn., have approved a
merger, subject to the
approval
of

state

and

Federal

authorities.

-

Lester D.

Shippee, President of
Harfford-Connecticut Trust, and
Raymond C. Ball. President of the
Phoenix
on

State

June

15

stitution

Bank,

that

would

the

announced

merged

function

as

in¬
the

from
of

*!♦

V

makes

stock effective June 3.

controllable

Mr. Chase is at pres¬

department.
the

in

ent

consolidated

greater

bank

Hartford

Eastern

and

will
cen¬

Connecticut

section

note

Mr.

and

Mays is in the personnel depart¬
.

.

S. Morgan

Smith's'postwar op¬
been one of
1 Sales - have

erating 'record has
growth.

consistent

expanded' without
interruption
1946, when
billings
amounted to $5.3 million; the 1953

since

figure
of nearly
$21.5
million
represented an increase of about
304% over 1946. During the same
period, taxable profits grew from
$404,000 to more than $3.2 mil¬
lion,

improvement of approxi¬

an

mately 700%,
is

S.

Maritime
to

Commission.

the

In

Smith
The National Bank of James¬
town, Jamestown, North Dakota, engages from time to time in the
construction of special machinery.
has
changed
its
title
to
the
The

Jamestown National Bank, James¬

North

town,

June

30,

for

the

of

contract
pro¬
com¬

for the National A.dvisory

Committee

on

Aeronautics.

will

and

power

horsepower, are
among the largest

split and a 10% stock dividend to
bring outstanding capital shares to
825,000.

For

than twice
sales.

This

marked

prog¬

of

of the

evidence

which the company has made

ress

in

or more

that

as

improving its operations since

the end

1952

decline

While

War II.

margins
showed

profit
and
1953

pre-tax

during
some

two

World

of

Smith's

from

of

those

the

previous years, this was due

mainly to congestion of the com¬

100,000 horse¬
of 150,000
believed to be

pany's productive facilities rather
than to competitive influences.
Based on the common capital¬

other

the

much

as

These

compressors, one of

vote
two-for-one stock

a

such

recent

design and

pressors

:'t

Texas stockholders

foregoing,

duction of two axial flow air

■;;';V

Mercantile National Bank, Dal¬

las,

most

consisted

effective

Dakota,

June 1.

ever

produced.

izations

the

at

the

of

end

re¬

uct sales mix is estimated to have

The

National

First

spective years, earnings per share
increased from 96 cents in 1946

been:

of

Bank

Mountain View, California with

to

a

capital stock of $256.^68
voluntary liquidation
and was absorbed by the Central
Bank. Oakland, California, effec¬

prod¬

50%""

Valves and Other Water-

into

went

1953, the company's

Turbines

common

handling Equipment-. 35
Propellers.
12

Navy

Other

Total
From

to the

.

100%

the standpoint of sales to

.

President

by

Pierotti's

Clark

S.

retirement

Francisco

C.,

D.

from

he

where

President

b/

of

R.

last

P.

A.

Pierotti transfers to

Everard. Mr.
San

appointment fills

caused

vacancy

month's-

Washington,

served

Vice-

as

Washr-glon

and

repre¬

sentative for the Bank.

Pierotti

prenticeship
with

the

in

Bank

of

of their

importance, are the U. S.
Government, industrial concerns,
public utilities, and municipali¬
ties. About 85% of the company's

sales last year were in this coun¬

with

try,

foreign

ap¬

1929

America

Na¬

the

balance

going

to

business
cause

of

The

for

latter

pand,

close

despite

increase

in

This situation

estimated

installed

capacity since

power.

to

413%

domestic

In tlrs

con¬

con¬

with rank of Assistant Vice-pres¬

struction in the United States will

ident. He

was

Presidency

of

America's

advanced to

two

years

a

Vice-

later.

1920.

ex¬

note

add approximately 1,850,000

horsepower

annually

the

to

na¬

tional total during the next three
William

Watson,

Comptroller,
President
Union

sistant

and

Bank

&

Co.
•

of

Arthur

advanced

from

Los

R
As¬

Cashier to Assistant Vice-

President; I and
was

Trust

California;

was

formerly

elected ViceComptroller
of

was

elected

an

Harvey
Assistant

R.

Wall?

Cashier

the directors at their June
meeting, according
to
Ben
R
Meyer, Chairman of the Board and
by

President.
Mi1. Watson served for

10 years

years.

In

installed
an

terms

of

waterpower

estimated

31

currently

capacity

million

of

horse¬

badly

number

facilities.

arranged
was

corrected about

midway

through 1953, when a
plant, erected at a cost
of approximately $3 million, com¬
menced operation. The new plant
represents the largest single ex¬
penditure in the history of the
company,
and increases Smith's
productive capacity by an esti¬
mated 25%.
In addition, it al¬
lows greater flexibility of manu¬
facturing, with a resulting in¬

large

new

in efficiency.
It is be¬
lieved, in fact, that based upon
existing orders, the company will
crease

power,

th's represents an increase
approximately 18%.
This is

be able

of

vicinity

exclusive, of course, of any new
projects
(such
as
the
recently
approved St. Lawrence Seaway)
which
might materialize during
the period.
It seems reasonable
to expect that the company, with
its preeminent industry position,
will continue to obtain a signifi¬

its 1954

cant share of any new oiders.

current

a

years

the

to

nection, it is interesting to
that
projects
now
urder

Bank

two

the

mentioned abovej

suffered during the
from inadequate

company

last

for

bright for

As

relation

Washington representative in 1947,

became

outlook

reasons.

and

continued

an

of

be¬

hydroelectric
has

The

year appears

favorable,

seems

its

excess

the

customers.

The outlook for Smith's normal

demand

began
his
banking in

tional Association in New York.
He

high of $3.24 last

the increase since 1946 has
about 350%, a figure well
of the growth in sales.
This has occurred despite the in¬
cidence of the excess profits tax,
plus provisions for renegotiation
which penalized earnings to the
extent of 37 cents, 82 cents, and
81 cents per share, respectively,
during 1951, 1952 and 1953.
in

position of Assistant to the
President of the Bank of America, dojnestlc er.d users. Smith's prin¬
cipal customers, listed in order
San
Francises,
Calif,
was
an¬

the

all-time

This growth in earnings has
approximated
238%.
Adjusting
all earnings to the present com¬
mon
share
capitalization, how¬
been

Appointment of Roland Pierotti

nounced

an

year.

ever,

3

tive May 14.

pany as of

and

Gibson, Mr. Littlehales and
the credit

Mr.

and Mr. Meagher are in

pitch marine
propellers for the Navy and the

$600,000 to $700,000 by sale

new

Home

tral

through the en¬
into the manu¬
water-handling

other

of

gates, trash racks and rakes, and
National adjustable and fixed vane axial
Bank of Chicago, Illinois has in¬ flow pumps.
As an outgrowth of
creased its common capital stock its turbine business, the company

Angeles,

The

years

by Smith

Michigan Avenue

The

Connecticut Bank and Trust Com¬

July 1.

once,

National President. All of the njen
are at the bank's head office, i
b

be

equipment,
including
various
types of valves, intake and crest

bridge, Ohio.

Mr.

tf-

banking
institutions. Its assets approximate through 21 offices. Capital funds
will exceed $22,500,000; commer¬
w$2 billion. It maintains 19 offices
in Greater
New York
resources, $300,000,000, and
and has cial
correspondent; banks throughout trust assets, $400,000,000. -




tional

June

to

continues

a

the

over

trance

facture

Mr.
e

Ville, New York,

serve

1824,

Cam¬

of

Beise.

new

E.

Founded

in

ford,

Members of the advisory board,
previously identified with Chemoffice

youngest

of

years

the

Th

Walter J.

Bank

effective

atomic

Vreeland, Jr.'

ica'ls

the

time

honor Mr. Schneider with

is

Managing'officers of the new
office
are:
Vice-Presidents,
F.
Stafford Clea'ry and John J. Cunliffe;
Assistant
Vice-President,
William J. Jantzen; Assistant Sec¬
retary, Stanley T. Davison, and
Assistant
Managers,
Leslie
J.
Christensen, John
W.
Mar x,
Herbert H. Turnier and

of

This

The

Hiroshima.

at

that

the

at

2

page

large measure of di¬
versification has been
achieved

5,

At

of

in 1937 and
President, July 3. 1941.
;
Vof

from

company

turbines,

ft

National

The

the

of

Virginia.
ft

dent and Comptroller

bigger and stronger than the vault
door

June

Comptroller

1924.

and

units

28

Trustee

door,

kind

He advanced

departments

Cashier.

elected

revo¬

vault

District

Eastern

on

one

only

Jackson says.

lutionary

time

officers in New York State,

es¬

rapidly grow¬
communities,"
Mr.

business

and

sistant

of New York's most

ing

all

clerk

1919 re¬
ceived his first official title, As¬

accom¬

modate the financial needs of

the

/as

at

Savings Bank.

Avenue,

office has been

new

Roosevelt

the

known

as a

that

June 15, 1904

career

with

Opposite the Empire State
Building on the southeast corner
of

West

ft

Mr. Schneider started his bank¬

*

Street and Fifth

opened

Bank,

Fifty years of experience as a
savings
banker
was
celebrated
June 15, 1954 by Adam Schneider,
Jr., President of the Roosevelt
of Savings
Bank,
Brooklyn,
New

ing

Jackson,

Hanover

effective

become

according to E. C. Sammons, U. S.

U.

with

was

was

member

a

New York's newest

fice at 34th

that

to

hales, Jr., Carl W. Mays, Jr., and
William C. Meagher. The appoint¬

ment.

addition

Kappa Epsilon and Phi Beta
Kappa.
*

Prior

Alton «P. > Chase,
John O. Little-

The Security I Like Best

a

Bank

New York.

Delia

•i*

Com¬

Policy

Blankers Association.
is

Trust

specialist in in¬

as a

securities.

time he

associated

became

Banks

American

the

Mr.. Forward

the

and

Huntington,

Company,

V

Bank

on

In 1947-48 he

of

Roberts

with

Correspondent

on

Relations

Diddle

S.

D.

•

of

member

a

Assistant

elected

was

Continued,

bridge, O%io has changed its title

has been with Sav¬

investments.

Science.
Mr.

is

Trust

and

ap¬

he

are

'They

surplus of $539,312.76. The Pres¬

'■

Manufacturing
International Banking

served

having

1939,

bank's

Leonard L. Gibson,

ments

the

with

been

of

board

the

of

directors.

by the orfice of the

caoital of $400,000 and

a

conversion of the Guaranty

President

tional City Safe Deposit Company,
The
National
City
Foundation,

since

ing

charter to take

Cashier, B. P. Rinebart. This is

Ihlefeld,

August

1

a

Comptroller of the Currency. The

lina.

Na¬

issued

was

effect June

a

'!*

of the Union

Cashier.

Huntington, Huntington, West Vir¬

Florida, Georgia and South Caro¬
•b

has

Home

when

The Guaranty National Bank of

a Vice-President.
who started with the

business

Bank's

Mr.

Bank

meeting.

noon

a

is

as a member
25-Year Club.

Bank

Mr.

named

Comptrollers. Cur¬
a
member of its
California
Conference,

and

he

well,

as

Bank

of

assignments in the collection de¬
bins, who was forced to resign partment; with the note depart¬
because of the pressure of his own ment from 1944 to 1950, the last,
three years as Manager; and in the
business.
ft
tt
ft
operations department since 1950,

M. Henry

Henry,

directors

of

Association

Mr. Blewett succeeds Karl Rob-

June 15 elected Ed¬

on

Oregon, following the May meet¬

Southern

made

was

United

the

at

announced

were

■,

Cashiers

Assistant

new

helped to organize in 1923, and
later
expanded into the

Auditors

on

Harry

Blewett at

May, 1946 and was

Trustees of The

the

The

announcement

board

an

of Brooklyn,

Director

York;

Manufac¬

to

came

ft

in

Trustees,
of

Va.

Schwarzschild, Jr.,
President of the Bank, after the

Department.

Vice-

trustee

a

Savings Bank

Bank, Richmond,

ft

it

ft

-

Five

States National Bank of Portland,

National

Central

the

Director of

Bank

which

was

-

Comptrollers, which

rently,

W.

by

Assistant Secretary
in the Real Estate and Mortgage
appointed

President

of

Jr.,

9.

The

C.

Southern division, supervising the
to

Colgate't

Mr.

Graham

turers Trust in

1945.

addition

Dime

an¬

was

he

ft

Blewett,

■-.

Cali¬

past President of the
fornia
Association of

-

Mr.

1923, Vice-Persident
and Senior Vice-Presi¬

1927,

dent

York

June 11, by Horace

on

He returned

Assistant

an

E.

a

National
June

Flanigan, President.

President in
in

Manufacturers Trust

New

Company,
nounced

Assistant Cashier.

an

Vice-

Assistant

an

as

elected
.

the

of

after the war, and

1920 became
He

Graham

President of

Lieutenant

Second

a

ft

ft

.

January of this year.
charter member

a

and

as

effective

Bank,

in

and

■■■

Mr. Watson is

Auditors and

William

of

Doctor

Kern

D.

Auditor

elected

was

named

1943, Comptroller.

July 1.

'

degree by his alma mat.er,
Colgate. University, on June 14.
On 3 of eight so honored, Mr. For¬
ward is President of Colgate Uni¬
versity's Board of Trustees.
Mr.
Forward
joined National
City in 1916, the year he gradu¬
ated from Colgate. World War I,
as

5,000

the

of

Treasurer

than

more

was

Laws

he served

in

and

communities abroad.

National

The

honorary

an

America

Senior

Forward,

as

he

-t

M.

Walter

of

bookkeeping-and-proof
departments. He was
Manager of the latter in

credit and

1922. In October of that same year

Orange, N. J., announced the elec¬
tion

in

Assistant Auditor in April,

Co.

Savings Bank of

The Half Dime

& Trust

Union Bank

of

messenger

working

Columbia, .before coming
Los Angeles and entering the

to

$96,000 of this increase was made
by a stock dividend and $168,000
by sale of new stock.

a

as

British

capital stock effective
June 3 from $240,000 to $504,000,

CONSOLIDATIONS

in
1938, later
the bookkeeping de-partment, of which he was made
manager
in 1946, the analysis,

in Victoria and Vancouver,

merce

common

News About Banks

Mr. Walk started with the Bank

of Com¬

with the Canadian Bank

The National Bank of Norwalk,

Connecticut

NEW

Financial Chronicle... Thursday, June 17, 1954

The Commercial and

(2674)

as

of

a

result to

20%

earn

before

in the

taxes

on

billings. This figure would
r.Dproximate
the
postwar
high
pretax profit margin of 19.7%,
which was. registered in 1950.
At
March
31,
1954,
Smith's
backlog amounted to $26 million,
compared to $39 million at the
close of 1952. Despite a reduction
of more than 30%, the current

Number 5334 ...The Commercial' and Financial C-hrariicle

Volume 179

than

the

normal, and it is anticipated that

the

it will be further reduced

Smith

figure

is

higher

somewhat

during

The

Over-The-Counter

company's first quarter re¬
little change from

showed

the

period of 1953.
the period
about
$5
million,
than the $4.9 mil¬

shares

being

are

market

the year.
sults

/

common

at

7.7

of

Market,

S.

times

in

valued
1953

at 5 2-

t.mes

share

earnings of $4.00-$4.80. The yield
on
last year's dividend disburse¬

amounted

ment

slightly
lion

more

during the initial
last year, while
taxable
profits are believed to
have approximated $1 million in
both
periods. f The
year-to-year
net income comparison, however,
was
markedly favorable to the
more
recent quarter, due to the
fact that S. Morgan Smith paid a
substantial excess profits tax in
the earlier period. First quarter
earnings were $471,000, or $1.19
per share, compared to $306,000, or
77 cents per share, reported in the
corresponding period of last year.
registered

three

months

While

-

tal

1954

of

estimate

an

billings

of

of

must

lieb Annual

earn¬

per sha.e, and
estimated
1954

CHICAGO,
the

oF

Board

Outing

111.—At
of

Directors

of

the

Municipal Bond Club of Chicago
the Board selected Sept. 10 as the
date for the 1954 annual outing.
As in "recent previous years, this

(including the extra paid in
January, 1954) is approximately
5%.
Although the stock is at the
party will be held at the Knollpeak of its' 1952-1954 range of
wood Country Club in Lake For¬
1414-26, it still appears to be rm
est, Illinois.
A4
i
outstanding 'vehicle' 'for further*
This affair, which is one of the
participation
in
the
long-term highlights of the Chicago Mu¬
growth of the hydroelectric power nicipal Bond Club's annual activi¬
industry. By the same token, the ties, is an invitational outing and
includes
golf, games and other
•

shares

are

believed

to

possess

entertainment.

greater than average stability due
to the

depression resistant nature

of the business.

Elmer G.
&

.

'

i

■

i

r

i

i

i

i

i

"

made

is

i

i

effort

to

provide

food and
ever

"more

before."

presently

expected

Opens in Lynchburg

that

LYNCHBURG, Va.—Edward G.
Webb
and
Dabney C. Jackson

of August.

announce

Exchange
Weekly Firm Changes

in
the
Peoples National
Bank
Building.
;
Formation of the new firm was
previously
reported
in
the

The New York Stock

Exchange
the following firm

changes:

"Chronicle" of June 10.

Hugh D. Auchincloss, limited
partner in Auchincloss, Parker &

BOSTON, MASS. — Hutchins &
Parkinson, 27 State Street, mem¬

a

Brown
be

of the late
to

Thatcher

by

bers of the New York and Boston

M.
will

Stock

Exchanges,

Exchange

admit

Louis

McCande

Thomas

considered

the

June 24.

on

'

to¬

neces-'

sity be somewhat vague, it is ex-,
that
production
against
existing contracts will continue
at

the

near

or

This

the

first

be

done

of

rate

the

year.

no

work

during 1954

orders

new

of

that

presupposes

will

quarter

balance

on

any

major nature.
New short cycle business, such as
small
valves,
will
represent
a
modest proportion of the antici¬
pated gross. Projecting a profit

margin

of

Smith

be

before
able

After

income

taxes

52%, net earnings for the
therefore

estimated

$4.00-$4.80

taxes

to

bring
profits of $3.3-$4.0

taxable

million.

a

18-20%

should

down

at

share,

at

year are

record

a

increase
of between 20% and 50% over the
per

an

$3.24 attained in 1953.
The company's dividend policy
during recent years has been to
disburse

conservative

stockholders

terly
end

on

basis,

augmented
when

extras

warranted.

quar¬

by

year-

conditions

have

1953, regular
cents quarterly

During
of

payments

to

sums

regular

a

25

made, and an extra amount¬
ing to 25 cents per share was paid

were

in January, 1954, based upon

1953

results.
At

Dec.

Smith's

31,

S.

1953,

financial

Morgan

structure

was

relatively simple, with $3 355.000
of
long-term
debt- compris¬
ing
the
entire
senior
capital.
Of 395,240 common shares cutstanding at that date^ at least 70%

aB^»believed to be owned by de¬

scendants of S. Morgan Smith,' the
mandgment and their families. In
Vedrmecjibh, it is of interest
tbliniptiei that prior to the public

salf of 100,009 shares: for corporate
account in

June, 1952, the-owner¬
ship of Si/Morgan Smith was en¬
tirely private. In effect, the of¬
fering

provided
with

owners

a

existing

the

ready market for

or
all
of their
holdings.
Despite this, however, none of the
original owners have liquidated
any of their holdings in the 23 month period which has elapsed
since the offering.
This may be
stated
definitely,
because
any
additional stock to be put un for

part

Grown from molecules

distribution would have
had to have been registered, and
public

r

has

none
i

so

Much of the

company's current position
the latest year-end appeared

fully adequate

sets amounted to. $9.9: million and

iiacduiied;£^vite^^-i^arly.^l.8
Current a liabilities

ap¬

proximated $4 million, leaving net
working capital of about $5.9 mil¬
lion.

-

-

Smith's cash requirements dur¬

ing 1954 will presumably be lower
in

than
years,

the

either

the

of

mentioned

though the sinking
company's

long

-

last

two

completion

due to -the

above

plant.

fund

on

of
Al¬

the

notes

term

amounts to $245,000 per year, this
will

offset

be

erated

by

amortization

facility of

an

based

for the operating

needs of the business. Current as-1

million.

-

'

been,

The

at

«

,

,

annual
on

accel¬

the

new

estimated $330,009-

$350,000.
Currently selling around 25 in




on

growth of the chemical industry is

the scientific

4

ill*

r

1

.

'

'

1

"

|

i

and materials for plastics, soap, explosives, photog-

rearrangement or modification \ raphy; and other uses

of molecules.
An

example of industrial expansion and develop¬
ment—from test tube to pilot plant to production
and sales—is contained in the story of "cyanamid,"
American
Cyanamid Company's original product.
Among the molecular offspring of, cyanamid are
melamine and acrylonitrile. V
.
;
Melamine has brought about revolutionary ad¬
vancements, in both production and markets, for
many manufacturing industries such as plastics; tex¬
tiles, paper, leather, chemicals, apd surface coatings.
Acrylonitrile, originally used as a key component
in
synthetic rubber, is now the basic raw material
for a new group of synthetic textile fibers. It is also
a base for the
production of sulfa drugs, new mining
•

.

,

These two chemicals

'

chemicals, selective weed killers, case-hardening

compounds for metals, fumigants, dye intermediates,

examples of the broad
Cyanamid Com¬
provides for American industry.

service in chemicals

pany

are

that American

COMPANY

AMER/CAN

30

July

Hilton

O.

partnership in the firm.

pected

during

ROCKEFELLER

PLAZA,

*

Hutchins-Parkinson Admit

effective June 17 be¬
general partner.
Transfer of the Exchange mem¬

Redpath,
comes

formation of Edward G.

Webb & Co., to deal in tax-exempt
bonds.
The firm's offices will be

New York Stock

has announced

2&

Edward 6. Webb Go.

festivi¬

more

invitations to members and guests
will be sent out during the month

bership

Hassman, A. G. Becker

Co., Incorporated, President of

the Club, stated that every
i

than

It

meeting

a

be

more

ties

2C2gQ

the

comparable
Billings during
to

will

fun,

-

Morgan

ings of $3.24
6.2

(2675)

NEW YORK 20, N. Y.

to

1 will
limited

j

24

(2676)

The Commercial and Financial Chronicle... Thursday, June

Continued jrom

page

entire

0

banking system which

bines the

banks have

com¬

Responsibilities oi
Banking Leadership Today

quirerpent—a carefully considered
plan for employee training and
lor the

development of

management.
success

upon

of

its

a

' The

growth

bank /rest

officers

successor

and

and

squarely

employees.

It is well for management to ask

itself

candidly such questions as
following: Exactly what are
doing to train our people to
render intelligent service to every
the

we

customer? What program have we

for

employees
and
officers
to
within
the
bank
to
higher responsibilities? Are we de¬
veloping successor management in
progress

banks? Are the working con¬
ditions and the remuneration ade¬

our

quate to attract able young
end women? Do

we

men

encourage

or

necessarily requires an un¬
derstanding of the Federal Re¬
serve

is

no

casual

or

securities

markets,

competency

creased?

an

ment.

Understanding

the

second

understand

operation

of

the

their

States

holdings-of

Government

the

ease

deficit

a

which

What

affect

the

are

and

What

control?

are

the advantages

serves

re¬

instrument of gen¬

an

an

bank

of

disadvantages

What

eral credit control?
weak and the strong

are

the

points of the

present geographical basis for de¬
termining member bank reserves?
There are bankers who believe
that

reserve

ally

are

requirements gener¬

level which is far

a

on

of

bankers.

the

money

We

of

Reserve

Sys¬
tighten and

to

markets

and

bank

money

tect

use

reserves?

purpose

the

Is

or

it to

is

now

held

in

System's

the

portfolio. These bankers believe
that it might be desirable grad¬
ually, over a period of time, to
reduce reserve requirements and
then to offer holdings from the
System's portfolio for investment
by the banks. Without attempt¬
ing to analyze the advantages and

primary: disadvantages of these proposals,

of bank reserves to pro¬

depositors,

high.

is

as

instruments

available

too

bal¬

reserve

freely such terms
as bank
reserves, rediscount rate,
and open market operations. Spe¬
cifically, what is the purpose of

serve

it is apparent
a

that they deal with

fundamental

aspect

of the

op-

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ooh

if if

Govern¬

bank reserves?

supply

has

rates?

CM in CM

CO CO
cm in

States

control the Federal

United

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if if if if

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m m m

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on

business

tem

securities?

if if if if if if

United

factors

What

money

nnnnnn

place when we
purchases
by
the

instrument of general credit

as an

and

They also feel that it
may not be
good policy over a
ances?
Exactly how do they op¬ long period for the Federal Re¬
erate?
These
are
banking andv serve System io hold an amount
monetary questions, and they are of government obligations as large

What takes place when the 15,000

o if if »in ©
OOrlHON

the

money

come

crease

responsibility is to

the

the

inves¬

Treasury? What effect does
increase in currency in circula¬

are

What takes place when banks in¬

Federal

Reserve System

The

does

of

tion have

from, and where does it go?
What happens to the money sup¬
ply if the Treasury buys gold?

Where

nonbank

ouy

of the

field, no banker can discharge
discourage employees who have the full
responsibilities
of his
imagination and ideas? Are trained leadership.
young people, who ought to find
Only a few years ago, such
banking attractive, leaving our
.terms as money supply and open
communities to find employment
market operations were relatively
elsewhere?
In the
years
ahead, unknown.
Today they are a part
more
than ever before, these
of the language of banking. Yet,
problems will occupy a position how
many bankers could explain
of
transcendent
importance
in
the
full
meaning p of the term,
banking.
money
supply?
How
is the
We may say, then, that the first
money supply increased and de¬

major responsibility of bank lead¬

Banks

ment securities to finance

in

this

ership is strong internal manage¬

from

commer¬

happens when

Reserve

direct

banks

incidental respon¬

decrease in
What

What takes

tors?

have

money

Without

sibility.

Federal

fiscal policy. Tins

System, the

and government

loans?

the

This

The

a

cial

15,000 individual banks.

17, 1954

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Volume 179

erations

Number 5334...The Commercial and Financial Chronicle

of

the

banking

Consequently, it
each of

system.

is important that

consider these matters

us

carefully and be thoroughly
iormed regarding them.
.

rate.

How

are

open

erations

To

an

are

points

of
effective

the weak and the strong
this instrument? How

changes in the

are

discount rate?. What

vantages

and

are

re¬

the ad¬

disadvantages

of

selective

credit controls such as
had under Regulation W?
Then there are all the
questions

we

of

fiscal
policy which
are
so
vitally related to banking. How do

Treasury operations
banking system?
In
decline, what effect

affect

the

business

a

plus have

upon

a

Federal

banks?

sur¬

Is the in¬

banker

responsibility of
informed

be

to

on

these

matters, whose responsibil¬
ity is it? Too frequently we have
been guilty of the sin of ignor¬

the world, we

ance.

it;,

to

us

the world. Our

responsibility
is
to
understand
these problems and their impact
banks and

upon our

What

are

the

our economy.

fundamental dif¬

the

between

banking

systems of the major foreign
Understanding World Banking and

tions

and

the

na¬

banking system of

the United States?

Financial Problems

What

the

are

relationships between the central
Finally, there is a third, major,
banks
of
the
principal foreign
responsibility. To meet fully the
countries

and

understanding
and

of

world

banking

financial problems.

Here his

responsibility for being well
formed
At

tion?

Which

ferences

ones

there

have

balanced

between

some

foreign budgets and the American
the banker budget relative to capital expendi¬
intelligent un¬ tures?
What is meant by con¬

minimum,

ought to have

an

derstanding of the monetary, fis¬
and economic problems of
Such

vertibility?
Complete
converti¬
bility? What particular problems

natioqs as Canada, Great
must
Britain, France, Germany, Italy,
and Japan.
Despite the political mine
uncertainties

the

and

confused

o os to <-■ r- oj en eo t-» ® © © o a

a

nation

whether

analyze
its

to

deter¬

currency

can

safely be made convertible?

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'
*

IfTOtCJ©trtOJCI

problems of world

banking, there is also

the question of the place of gold
in international affairs. 'What is
a

free gold standard?

A modified

gold bullion standard?
the effects

gold

upon

Banks

serve

of the

are

member

banks

0JTOC-0JO©©0)N04i<»<rH®O©©©Nt-05Hf<O©Nt-t-rH©«
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nojojojojoj^<^^<H|<Ht<Hi«^<©©©©©©©©©©©©®©©©
t © © © © HC hJ< OJ TO iH t- rH © ® OJ ® © ® OJ © OJ TO i* rH © if 05 TO

OJ©©C-®©OJOJOJ©©C-®TO®©NNOJOJi»<£-©©©rHOj
-

rHrHrirHrHiHrHrHrHjNNNNNNNNOJOJOJOJ

interrelated parts

(3)

The

fundamental

monetary,
problems.
You

responsibility for' a
knowledge of world

fiscal,

and

economic

say that this is the
perfection. And so it tagreatly enlarged and dynamic
may

counsel of
A

changes,

American economy, closely inter¬
woven with the economies of the

entjre world, demands the highest

governing

What

American

trade

with

standards of bank leadership.

nations?

Geo. D. B.

Summary
Here

then

are

the

broad

They

are

responsi¬

bilities of heroic dimensions.
There

is:

(1) The responsibility for com¬
petent internal management.
(2) The
responsibility for a
thorough understanding of the en¬
tire
banking
system
with
its

banks, including the Fed¬
System
and
the

Reserve

Bonbright Co-

To Admit New Partner

out¬

lines of the major responsibilities
of the banker.

15,000

as

should be made in policies

it any,

eral

Treasury, all

of the financial structure.

the Federal Re¬

and

and other nations?

other

What

System of the shipments of
between the United States

have their

What fundamental dif¬
are

great proportions.

assumes

the

in¬

any,

internal finances in sound condi¬

budgets?

finance and

treasuries?

their

requirements of his leadership, the
Which nations, if
banker must have an intelligent

Among the

can¬

nor can we

the ties of trade and finance

which bind

ferences

Oxp r- co o
t-t-cocooooooooooocoa.oooooj
<O<DICCDCO<0<O<O CO CD (Oho CO CO
rHrHrHiHrHrHrHrHi-HrHrHO'itHf-l

HrHrHrHrHrHrHrHrHrHrHrH rH i-H rH r-<

of

sever

markets?

If it is not the

) © o> o i-i rh n oj rr to

10 CO rH h* O CO rH OJ IO OJ OHO 0» tP rH t-

economics

not withdraw from

the. cal,

might

Federal budget have upon banks?
What effect would

Reserve

Federal

op¬

effective and desirable
instrument of credit control?

What

the

bond

the

market operations conducted?
what extent are open market

of

System limited in the government

in-

One may ask similar questions
of open market
operations and the

rediscount

fluence

25

(2677)

ROCHESTER, N. Y. — George
B. Bonbright & Co., Powers
Building, members of the Ne\ar
York Stock Exchange, on July X
will admit John H. Kitchen, Jr. te
partnership as of July 1.
v
•
D.

J. Frederick Brown
J. Frederick
Boettcher

;

Brown, partner 1»

& v Company,
Denver,
Colorado, passed away on June SL
•

26

The Commercial and Financial Chronicle... Thursday, June 17, 1954

(2678)

,

Peterson Does Not Advocate

Our

became a

Chemical

Allied

of

■i*

Chronicle:

Financial
Will

kindly correct a mis¬

you

statement
made

inadvertently

fact

of

in

your editorial staff
the issue of June 10, 1954?
In

by

a

preface to my

article,

"T a

Revision

IIVA_

t,"

e n

m

the

statement

was

I

t

t n a

c^e

i

had concluded
that the

"16th

Amendment
be

must

pealed,

re¬

and

Federal

b olished."

a

Dr. W. H. Peterson

This
my

but

that

of

in¬

taxes

come

not

was

conclusion

Frank

Chodorov,

author of "The Income Tax: Root
of

All

Evil,"

and

Governor

Bracken Lee of Utah.

that

was

their

case

J.

What I said
"merits

pro-

eration

cannot
provide
abuse of the
Federal
taxing power and aid
greatly in the formation much
needed venture capital." Testify¬
law

Board of Directors and

easily

result."

tion's opposition

this

for

tion,

Directors

The

the

Economic

for

ex¬

Council

S.

Chamber

tional

suggested that the prob¬
income

tax

abuse

may also be solved by removing
the progressive aspect of Federal

leaving

Continued
to

save

our

Industrial

Commerce.

Reports

WILLIAM H.
_

.

.

„

In

enterprise

.

Graduate School of Business

tax structure.

Along these lines, Senator Ever-

^5ni5lls.!ratl0n'
University.

rett

M. Dirksen and Representa¬
tive Chauncey W. Reed, both Re¬

increase

,

June

12, 1954.

'

members

Before adjourning their 83rd Annual Meeting,

Foster

as

full-time President and
Foster reports

productive

American
In

*

on

certificates

of

new

of

of all

^ecorcf with

an

rate of 3.69 per
x

.

'

to pay for

V

/.

nation.

V

* <

if

J*

and

The corporate
get relief from the indigestion

to

was

were

a

postponement of several of the

supposed

to

,

new

along and this had
buyers of new corporate
come

to switches in some cases

which have

the tax-free securities.

Government Market Firmer

*
The

best

-

of

one

more

underwriters

as

the whole picture.

.favorable

been used

government market has been acting better also because

there appear to be more buyers around for the intermediate

longer-term issues.
be

worked, making the chemical in-

dustry"

one

as

be - working

because of the

in,
well

from government obligations in order to get the fund

safety
accident frequency '
million man-hours
its

investors

towards
first

there

dustry executives that in 1953 the

achieved

been

moved out very well, and this has led

an¬

achievement

in safety, Mr. Foster told his au¬
dience of over 650 "chemical in¬

industry

has

Municipals Still Under Pressure

Canada.

the MCA

it

municipal market, according to reports, has been giving
some evidence of an improved tone, even though there is still an
ample supply of these securities around and the offerings that are
pending appear to be large enough to keep the buyers of this kind
of security well supplied for some time to come. The indigestion
still appears to be fairly prominent in the municipal market, and
there does not seem to be much chance of it being removed immediately.
However, the not 'too long maturities of state and '
municipal bonds, as well as certain of the revenue bonds, have

of the
industry.

chemical

the

market appear to

money

The

capacity

commenting

nual

r

Association's growth.

on

the

Director of the Association.

a

in

The MCA represents over 90%

'

New Officers of Manufacturing
Chemists' Association

Three of the

located

are

which

taken

was

C.

companies

member

in

from 127 to 149.

.

jeld atjfWhlte
Sulphur Springs, W. Va., the Manufacturing Clfemists' Asso¬
ciation elected Fred J. Emmerich, of Allied Chtjnical & Dye
J r
Corporation, as Chairman of the Board, and reelected Wm; C.

William

the first full-time Presiderd 0£ £ke Manufacturing Chemists' Association, announced an
Foster,

.

_

at

Convention,

Springs
_

the membership
the White Sulphur

report to

a

delivered

PETERSON,

.

Progress

MCA

on

abuse will

free

system.

proportional

a

to

solutions

in

income tax

Federal

serve

interest

have

the

which

obligations.

of the Interna¬

of

of

psychological effect upon
Secondly, most of the stale syndicates were dissolved
and this made bonds available at prices which investors were
willing to pay, and as a result these bonds found permanent homes
very readily.
These two developments meant t^ at the corporate
bond market had overcome nearly all of its indigestion, because
some of the bonds which were still in syndicates started to move
out without having to change the original offering prices.
Also,
the outstanding corporate obligations turned about and prices of
these securities moved up as much as a point in some instances.
a

Club

the Committee
Develooment, and

-Vdonomic
U.

issues.

nearest-term

stalemate

approach

First

Trus¬

serves as

National

the

Con¬

of

the

corporate bonds that

of

Conference Board,

tabled the prop¬
session

of

tee

could

of

York, and

public ones,
distant

most

had developed there.
Corporate issues had been coming
along too rapidly and they were being priced away from the going
market for these securities. Accordingly, many of the new bonds
were not being sold and there were quite a few stale syndicates
around.
' ■
V
'

member

a

the
the

which

the

the Board

member of

a

of New

system,

Administra¬

The

of

the

bond market

Manufacturing Chemists' Associa¬

the Treasury
George M. Humphrey said that it
would require a "reconstruction"
and "a financial breakdown

Vice-Chairman

of

borrowers

of the Executive Committee of the

of

tax

out

realistic

men
skilled in
engineering, and com-

is

He

into

money

Corporate Market Improved

merce.

ing against the proposed amend¬

for

Certain jsectors

among

chemistry

recurring

entire Federal

market

the

of his achievements "as a business
jeader devoted to building chem7
-caj jndUstrv by fostering coop-

"provide needed assurance, which

the

awarded

was

Medal of The American In_

Gold

?,g0'Ja!l.A
official said that the
Reed-Dirksen amendment would

of

he

^952

stitute of Chemists, in recognition

.

Secretary

the

versitv.

jn

funds, mainly

of

more active one, because of the
strong demand which still persists for the most liquid obli¬
gations. The switching which has been going on from the shortest
Trea$uries, into other maturities has had practically no effect upon

as a member of
council of that Uni-

the governing

Pension

amounts

very

elected

recently

basis and a
majority vote of the

one-year

fair

The short-term market is the

Commerce

in

putting

issues.

of

degree

honorary

Science

institutions.

same

still

are

was

j-,y New York University, and was

Testifying for the American Bar

ment

the

of

Doctor

the

of

Emmerich

Mr.

1950,

awarded

Association before a Senate Judlciary s!J5cAomJ?. ?e.e a ?TuW4.e?uS

statutory

However, switches from the

these

Chemical, ? one

Allied

In

H^se.^n.^ Senate.

against

being put to work.

money

country.

rise of 15 percentage

a

a

new

is

gress.

lem of Federal

taxation

on

osition

amination."
I had

points

three-fourths

The

Amend-

16th

visions for

with

rates

tax

x

Re¬

visited:

income

of

near-term issues has been

responsible for the bulk of business which
being done in these obligations. Commercial banks have been
the active buyers of the middle-term issues
withtl reports that a not
unimportant amount of the longer-terms are al^o being bought by

of

publicans of Illinois, have proposed
a
Constitutional amend¬
ment to set a general ceiling of
25% on individual and corporation

been giving evidence of an im¬
investment demand, especially in the intermediate and
longer-term obligations. Some of this buying has been the result

proved

and in 1926-he was
to
Allied
Chemical.

largest chemical companies in the

ished," but the proposal, advanced by others, "merits exam¬
ination. Says solution to Federal income tax abuse is essential.
Editor, The Commercial &

Governments

on

The government market has

Auditor at Na¬

Appointed Comptroller in
1929
and subsequently Vice-President,
in 1946 he was elected President

abol¬

repealed and Federal income taxes

Amendment must be

1

•

pro¬

was

soon

General

to

transferred

Says he does not conclude "16th

"Chronicle" of June 10.

'

By JOHN T. CHIPPENDALE, JR.

tional Aniline,

in

preface to his article

misstatement in

Calls attention to

Emmerich

Mr.

moted

•'

Reporter

Dye

&

Corporation that same year.

Repeal of 16th Amendment

;

■

a

American dye industry,
unit

V,

.

successful career in the
chemical industry. National i Ani¬
line, a pioneer in developing the
ning of

LETTER TO EDITOR:

gaining

a

The tendency to lengthen

and

maturities^seems to

bit more momentum,: with certain of thO larger com-

*

the',safest Tn ;the^rr mercial banks among theimportant buyers of the new 1%% notes.

eoih^any^'AJfkoiigh there is still

Twenty-two

a

fairly sizable supply of this issue around,

>

which ooerated 174 plants through , !if ^illmot take too much . more buying of the kind which -has
Allied Chemical
+
Jr., full-time Secretary-Treasurer, 1953 without a lost time accidefffr been going on in this security before it will be well placed in Allied rhp^^f i Dye ri
&
Corp., to- also was reelected
*
jj will receive the certificates of
string hands. .
" r; ■: 1 ' :
V
/ V!
day was elected Chairman of the
Directors elected for
FrpH

Board

T

Fmrnnri^

of Directors

npn,{,0„t

of

the

T

Manu-

MMmmmrnm

•

,

4.

„

0

'

.

i

the^term ■ achievement

at the 82r\ci. jmnual
The IOiiger-term bonds likewise aonear to be attracting more
ofiftCA"BOTgf held" ere. " "investors, with others than the pension fund now showing an
Trostftr
alsn
disruggftH
the
int^r^t in^hg^obHgations. ^ The fact that there has been a

expiring May 3U1957, are: Leland
I.
Doan,
Presidfnt;- The

meeting

Jf ow
Mr
Johfi Fennebresqfue,
Foster a*su ^.cus^
Vice-President, Celanese Corp. o£TExronsion- of the ..M&Avpablre-re-

Chemical Co.;

America; Joseph' Fistere* PresiMallinckrodt

!?tl0"s. lc.tlvlty..®n? r?Ported

Works;

th,e.£?rst
Progress Week
®7h'e9h was held nat'onally MaY

.I&sulte of

GfierticaN£e

dent,

A.

E.

Forster, Hercules'
Co., Inc.; John L. Gillis,
Vice-President, Monsanto Chemical Co.; R. K. Gottshall, Presi-

Powder

mittees were formed. The new
committees cover industrial rela-

and

tions, statistics, and tax policy.

Directors

of

MCA.

elected

for

the

term

In

three

functional

1953,

Curdy, President, Shell Chemical
Corp., and Mr. Ward of du Pont
Foster

other non-Treasury

-

securities.

Open market operations by the Federal Reserve Banks keep

He also announced that during

.

dent, Atlas Powder Co.: R. C. Mc-

Mr.

broadening of the demand for fbfe longer-term bonds has enabled
the ngiarket to take the selling, which comes in from time to time,
pretty much in Stride. Life insurance companies continue to be
seller^ of the more distant maturities, because funds are still
needed by these concerns in order to take care of private deals and

new

com-

the money markets on the easy side, with the shorter-term obliga¬
tions the principal beneficiaries of this policy. However, it seems
as

though

of the

some

which has been made available to

money

the money market, through oo^n market operations, is
to find its way

into the middle- and longer-term issue.

expiring May 31, 1956, are: V. G. first year of stewardshio, Mr.
Bartram, President, Shawinigan Foster complimented the conrnaPFmminnlc
T 4-r\
T
Chemicals, Ltd., and J. Clarke nies makingup>be
i

Fred

J.

Emmerich

William

C.

Foster

'

kali Co.

factoring Chemists' Association,
Inc., at its 82nd annual meeting
here.

:¥■

Mr. Emmerich succeeds

S.

Charles

Munson, Chairman of the

of

Air

Reduction

elected to the
of

Co.,

of

the

C.

who

Board,

Grace

elected

a

full-time

Director

of

the

i.L

_l_«

_

Chemical

Director for

—1

Co.,

sured

term

r^a(iy

the

group

that MCA.
them
-

asticallv

support

e^tbusi-

what he termed their

in

tremendous work.

in

was

1892

tion

J.

in

Emmerich,

Chairman

of

who

was

La. Nat'l Securities Co.

the Associa¬

born in New York City

and

the

received
New

his

CSDecial

educa-<

York

public

NEW

to

The Financial

ORLEANS,

Chronicle)

La.

—

The

T

Howard
H. Ward

dents.
dent
bon

of

S.

Bunn

were

Mr.

and

William

elected Vice-Presi¬
is a Vice-Presi-

Bunn

TTrUz-i

Union

Corp.

reelected.

was

Mr

^ - —

n

Carbide and

Ward

is

a

Car-

Vice-

President
of
E. I. du Pont de
Nemours & Co., Inc. M. F.
Crass,




Lou,slana National Securities Co.

sity where he attended the School

Association,

schools and at New York Univer-

has been formed with offices at

of

Commerce, Accounts, and Fi- 1637 South Carrollton Avenue to

naa^e*

.

After completing military
ice

servduring World War I, he joined

the National Aniline

&

Chemical

engage in the securities business.
Officers

*7

.

dent'

are

T

B

Clifford

Presi¬

" -re U B. cnttord, -^resi
^r-

Joel

B-

G™y>

Vice"

Company as an accountant in President; and Mrs. Marjorie F.
1920, a step marking the begin- Bethune, Secretary.

-

Lily-Tulip

-

-

Corp.,

Cup

will be

$3,000,000 of notes

repay

added

to

of

to

one

shareholders

additional

at

share

the. rate
for

the

1954, at $65 per share. War¬
rants evidencing su^h fights ex¬
pire at 3:30 p.m. (EDT) on June
29, 1954.
Blyth & Co., Inc. heads an underwriting group which will purchase from the company any un¬
subscribed
shares. The stock is

the

New

York

and

comany

capital
contem-

1954

of

1955

000.000

for

$7,and

new

each

15,

on

capital

The

approximately
machinery
additions to plants,

and

The company

eight shares held of reeord June

traded

working

additions.

New plates expenditures during

York, is offering 88,000 additional
shares of no par value common
stock

Fred

sale of this

stock

and the remainder
for

...

,

to

to

from the
common

company's general funds, available

.

The New Chairman

elected

used

Offer Underwrilten

'

Proceeds

additional

•

public rpsnnnsihilitv and sjoiyit-OT4.
responsibilitv and
cooperation."
.

a

:

chemic^iblf^i^

mihlin

expiring May 31, 1955.

was

Executive

Foster,
a

'
.

the

tion,

and

*

Board

Committee.
William

"

...

^Wilson, Chairman of unselfish

was

newly created post

Chairman

President

Charles E.

beginning
:j

concluding the report of his

Stock

Exchange. Dividends have been
paid in 1954 at the quarterly rate
of 60 cents per share.

manufactures and
nested paper
in the serving

sells paper cuos and

containers utilized
and

packaging
of
Products

beverages.

half-ounce

cups

to

foods
range

and
from

10 lb. nested

tubs for wholesale food products.
principal plants are located in
Springfield, Mo Augusta, Ga. and
College Point, N. Y.

Its

,

-

1953

In

and

.

the

company

had

net

to
$54,768,862
net income of $3,077,865.

sales

amounting

\

Volume 179

Number 5334... The Commercial and Financial Chronicle

ital, to new business, to business
expansion?
< .
What would be, the impact of

The Guaranteed Annual Wage vs.

guarantees
self?
Do

Senior Vice-President, National Association
;
}.
'
•

.

Commenting

'jj

■,

■

■

Miller states

all

fil¬

are

■

business

now-prepared to

;■

businessman

likely

feels

aware

of

immune

and is not
possible repercus¬

the

sions and the chain reaction effect

which

a

national pattern of "guar- :

antees"

could

conceivably

bring.

Whatever may be management's
In terms of the individual

there

that

1954 will

them
a s

be

despite

com¬

who believe

are many

good year for

a

business decrease

a

efforts of those who

view

"fear"

tees, the problem cannot be light¬

are oiling the
mechanism—by those who
expect to profit by voicing their
doieful predictions.

compared

This

with last year.
P r o f i t-wise,
of

decrease

may

offset

be

the
of

us

Excess

also

heard

to

that

is

ways a costly
by-product of

v

operating
a t
full
capacity.

a

basic that it

those

factors

which

cause

bell

have
months

was

com¬

have made

The quest for

curity has reached

driving force in

a

peaks

new

a

as

economical

more

Despite

these

not

signs

clear

not

are

we

do

we

of

myopic that

so

perceive

that

the

to

political opportunists, to the mer¬
who hears about big plant

chant

layoffs,
of

the

to

who

man

is

out

job, this ''alleged" depression

a

industrial

The

(1)

points

our

theme

leadership.

Public

"Exciting Discoveries"
We

will

management

matically require business to em¬
ploy as many people as are able
and willing to work.
(2) The Community E x p e c t s
Every service in town,

Payrolls:

tradesman,

every

shoe

every

clerk, every gas station operator,
every barber has an ear cocked
for

.that

talk

be

may

there

like

sounds

in his

reduction

own
He may not even realize
a

income.

he is relating

what he hears about
community's economic health

the

decisions

the

to

his

store

own

or

makes

he

about

But the

service.

fact is that he more or less takes

busi¬
He
payroll to

it for granted that it is up to

keep people emp'oved.

to

ness

counts

on

keep his

industry's

business goin6.
And

Work:

Steady

spend

little

a

Expects

Employee

The

(3)

I

want

time

more

to

this

on

one.
j

The

man

who works for others

expects to have a job
but wants that job to be steady.
not

only

ominous
that threatens, and while

He is quick to sense any
shadow
I

to

want

tions
me
no

right

say
news

news

hire

two

that

travels

let

later,
as

there
fast

is
as

company's plans to

layoff people.

or

In

a

or

here

that

about

communica¬

mention

minute

a

many

places

.

has

em¬

,

jobs is

*An address

11,

best

However,

lead

us

to

in

some

profess to

approach
long-

our

this

field

exciting dis¬

that

an

industrial

ago,

his

change,
start
a

agricultural

he

all

75

economy.

if for any reason
job or just plain
could

over

a

West

on

a

fair

workers

a

.

and

With

a

a

major plant

augmented

by

r

the

Rotary

by Mr. Miller before the
Club, Chester, Pa., May

1954.




with zeal and determi¬

techniques for reducing fluc¬
in production
and em¬

tion, timing and emphasis must, of
course, be tailor-made to fit the

country

can

work and

ployment have taken on special
significance:
Their- relative im¬
portance and method of applica¬

have become specialists. The shut¬
down of

pay

of steady

attacks

tuations

of grit,
security.
changed. The in¬
this

problem

which

Over the years, certain methods
and

own

of

business

nation will be amply rewarded.

section

a

any

steady

measure

he could build his
But times have

the

lost

wanted

go

again

to

years

man

half-section of land.

Since the primary cause of sea¬
sonal

Sept.

safe

no

in

depository of

their

control

wholesome ■'

ex-

with

,

discretion,

« .

a

alone assure*

understanding, no nation can
thrive. The integrity and leader¬
ship of the industrialists in his
day-to-day living in the commu¬
nity and in his relationships with
his employees and customers are

Business Upturn Near

at this problem from
the overall viewpoint, I think we
can
take heart in the fact that

President

the

being tested.

now

L".

Looking

Eisenhower

is

firm

a

1
«

ual

the

cretion by education."

>

sphere. We well recognize
high standards of living do
a strong nation.
Without a recognition* of human
.values, an-appreciation of cultural
riches,, and a dedication to spiritour

not

remedy is not to take it from
them, but to inform their dis*:'•

1975—and ^

Life- in

that

the

of

powers

enlightened-enough to

ercise

"

>j

As employers, we are interested
in

doing

the things which hold
greatest promise for long-

believer in the ability of the econ¬

range

to thrive without the appli¬
of government palliatives.
Despite the heavy pressure put

uals, for our companies, for our
employees and, above all else, for
our
country.
We disagree with
each other in many things, but we
want most of all, to do what is
right, what is honest, what is in

omy

cation

him from many sources, he
firm in his view that

upon

has

stood

"emergency action" is neither
nor
desirable at this

necessary

time.

success—for

us

individ¬

as

the interest of progress.

A normal business up-turn

is

believed by many to be in the
immediate offing.

T*think

we

already seeing

are

signs of this.

He has

be stampeded

into

refused

to

"slam-bang"

a

Edgar J. Loftus to Be
W. G. Langley Partner

unemployment

ups-an d-d owns*

management, employees and the
public alike—to understand what
this phrase actually means.
Few
people know that today

the

in

ministration has promised to take
whatever steps necessary to main¬
tain the economy

the

face

for

a

high level.

the

continued

at

of

the

White

House

to

something," every economic
sign-post is being watched with
the greatest care.

gives
tion

Unless business

indication
do

to

its

that

sure

to

be
will
bolster the

we

can

government

and

try

against

economy

determina¬

a

part,

the

in

move

of

slump.

a

Edgar J. Loftus

Yes

indeed, the spotlight is fo¬
cused upon us and everything we
do'

with

carries

not

only to

ests of

our

it

the

obligation

the best inter¬
customers, employees
serve

Edgar J. Loftus
become

ley

&

July 1 will

on

partner in W. C. LangCo., 115 Broadway, New
a

stock-owners, but to make a
continued contribution to the pub¬

City, members of the New
Mr. Loftus
is Senior Vice-President of R. S.

lic

Dickson &

and

And I have faith that
good account
stewardship in this regard.

good.

York

York

Stock Exchange.

Co., Inc.

business will give a
of its
As

look

we

assess

(1)

our

the

to

strengths

The

future

structure

and

find that:

we

of

our

free

Hammond Organ

Stock

stems

At $28 Per Share

seasonal

people for goods and services

but in more effi¬
operation—and ac¬
companying profits—for manage¬

our

ment.

such

employee,

cient low-cost

providing

met.

are

require¬

certain

that

ments

I

basic needs

have

in

Sound governmental poli¬
cies with recognition of the im¬
portance of a balanced budget, of
reduced expenditures and of a tax

tries, and that the guarantees are on the nail." It is natural to feel
that people ought to understand
frequently cancelable.
Do people understand what is that other things are Involved —
involved in wage guarantees tied for example, that as long as Amer¬
in with unemployment compensa¬ icans have- the freedom- to
buy
tion as demanded by several of what they want and also not to

uncertainty.

CIO unions?
are the implications

free

econ¬

What would they do to flexibil¬

granted that peonle should under¬
risk and" incentive stand th&f a wide range of forces
vital in a competitive contribute to stability or instabil¬

ity, initiative,
are

-

system?
What would happen to

risk

cap¬

than

rather

assures

favorable
to

both

Its stock is listed

organs.

and Mid¬

American

the

to

a

business

expansion

restriction

and

A

net

in every year

;

7

since the organ was

in

have

been

paid

since

1936.

Net

to

in

income

$3.35

year

every

per

the

for

31,

March

ended

amounted

Dividends

1935.

introduced

year

;

,

profit has been reported

1954

share on

national labor policy the 746,608 shares which repre¬
which while recognizing that the sent the total capitalization.
public interest is paramount gives
protection to the rights of individ¬
With Samuel & Engler
uals and equalizes obligation as
buy things, steady production and* between
employers and unions.
(Special to The Financial Chroniqlb)steady employment are not en¬
(3)
Continuing scientific and
COLUMBUS, Ohio—Francis V.
tirely deliverable.
j
We^more or less take it for techrtttlogieal -advancements based Pettit is now affiliated with the

what

a

which

climate

on

west-Stock Exchanges.

as:

(1)

policy

electric

mind

"guarantees" have covered only a
Now, coming back to my theme'
fraction of one percent of total of public, community and indi¬
wage earners—that the mortality vidual
expectation of jobs and
of these plans has been exceeding¬ steady Work; there are many busi¬
ly high—and that they have been nessmen who may feel it is un¬
largely confined to a few non¬ reasonable of people to exoect
durable
consumer-goods
indus¬ that industry will always "hit it

.Just

*

anti-recession program.
But, let's
not overlook the fact that the Ad¬

needs of each company.

throw

Jarvis,

American

from
sales economy is basically sound.
Public offering was made on
(2) The
Administration
is
volume, a study of how to stabilize
June 15 of 114,954 shares of com¬
Unemployment insurance is in¬ employment would logically start achieving important results which
mon stock of Hammond Organ Co. :
tended to cover in part the needs with a survey of the fluctuations will add substantially to our na¬
at $28 per share by a group of un¬
of the
temporarily unemployed. in sales and a thorough explora¬ tional welfare.
derwriters, managed
by A. G.
But this is no answer to the prob¬
(3) Our standard of living- is
tion of all possible methods
to
Becker & Co. Inc. and Hornblowlem of job security, nor is it in¬ avoid such swings in sales. Many high and there is every prospect
er & Weeks.
tended to be.
companies have found it possible that it will remain so—that the
This offering represented no fi¬
I am
aware
of the fact that to
substantially level off peaks era of production and expansion
nancing on the part of the com- •
many people believe that we can
and valleys in production by an¬ which lies directly ahead will be
pany, the stock coming principal¬
resolve this problem of job secu¬
ticipating high sales points and of a scope and magnitude beyond
ly from the Estate of Mildred
rity merely by passing a law or producing to meet them during any ever witnessed in the past—
Hammond, which is selling 66,930
allowing us to rrfeet the needs of
signing a contract guaranteeing slack periods.
shares, with eight other stock¬
I recognize that there are limi¬ a population which minimum es¬
employment.
holders, including Laurens Ham¬
tations as to what business can do timates tell us will be increased
mond, President, selling amounts
Understanding the Doctrine
of and by itself—but no one can
by 40 million people by 1975.
ranging
from
1,200 to
13,124*
These
factors
add
up
to
a
Certainly there can be no quar¬ convince me that greater appli¬
shares.
1
rel with the basic desire for steady
cation to the;, problem
will not bright outlook—a future in which
Hammond Organ Co. manufac¬
work and steady pay—but there is
bring greater results—results not there is every possibility that in¬
a
great urgency for everybody— only in steadier work and pay for dustry can satisfy the needs of tures and sells various types of

which
,

not

concentration

term

for this

do

the

coveries—discoveries which prove

the larger

today,

normal and human concern about

Chester

NAM

what is

for all plants.

America has greatly

ployees are talking about leaner of such guarantees to
times and tightened belts.
Their omy?
their

in

know

Many factors will enter into the
shaping of our future. The Design

"do

from

an

not

In

pay:

letter

a

>

ultimate

clamor

provide the workers in a whole com¬
jobs.
People have come to ex¬ munity out of work through no
pect jobs as their due and auto¬ fault of the employees themselves.

,

still have

our

dustrial

Jobs:

Expects

Tjiere is always the " expectation
that

We

changed

plow and

three

make

to

want

here that all tie in with
of

job fluctuations.

good deal of progress

fact that

or

is worrisome.
I

reasons

control

to go to provide steady

way

and

our

One of the basic

its

preoccupation with security is the

methods.

hope,

long

work

—

introducing

a

within

in this direction, but we

se¬

society. No
Kenneth R. Miller
matter where people work — on
Furthermore,
the bench, at a lathe, on an assem¬
as
peak demand declines it af¬
bly line, at an executive desk
fords management a needed op¬
they are concerned about the se¬
portunity to look to ways and
curity of their jobs.
means
for
increasing efficiency
and

of

root

was—it

our

Let's face it.

the

at

been ready
employees what

should

country returning to normal
petitive conditions.

al¬

lies

proposals for guaranteed
and employment plans is so

wage

of

I think each of

noise

new

guaran¬

properly deserves the
best thinking and most construc¬
tive action possible.
I say "action" because
genpine
progress towards steadier work is
possible only through intensified
management efforts to deal with

first faint

explain to

wage

current

and should have

ago

by

overt i mie—

wtjich

the

function

which

ment

of
re¬

explained
it certainly is not

employers

as

in

reduction

full

proposed

ly brushed aside. The desire for
continuity of incbme and employ¬

being

being understood.

Profits Tax
and

the

isn't

now—and

even

removal

the

sharpest sort
industry.
It is a

that

industry

b y

the

for

minder

this

some

is

signal

of

Charles

in

society but the people them¬
selves;- and if we think them
:

disasso¬

ciated from this union drive very

.*

pany,

the

the

and

is

who

1820:

"I know

answer ques¬

Employees in the

person

re¬

am

for

presently being felt, are probably
only superficially aware of the
real significance of their demands.
average

I

yes, in 1955—will be largely in¬
fluenced by what you and I do
about the problems which we face

union

The 1 small

this,

statement

William

to

itself

production industries, where
pressure for guarantees is

mass

saying

.tools and new"

new

Jefferson's

28,

people-, in

tions like these.

jobs, the community expects payrolls, and employees expect
steady work. As to the guaranteed annual wage, now being
demanded by some labor unions, he points out that this might
reduce job opportunities, boost prices and prevent business1'
growth. Recommends employers seek means of stabilizing
their operations, and thus prevent seasonal and occasional
unemployment. Lays down as basic needs: (1) sound govern¬
ment policies;
(2) continuing scientific and technological
advances, and (3) recognition of role of risk capital in the
job making process.

,r

that

Few

in

facilities,

new

machines.

minded of the wisdom of Thomas

realize

consumers

But

.

responsibilities of industrial leadership, Mr.
it should be recognized that the public expects

on

:

ter down to them?

of ^Manufacturers
-

national relations, work stoppages,
technological progress, weather,
the market itself, etc.

the employee, him¬

on

./

-

costs of the guarantee would

5

MILIAR*

By KENNETH R.

27

(2679)

ity in a free economy—including
government's fiscal policies, inter¬

,(2)

oh

A

research.

(4)
risk

*

Samuel

Recognitfon of the role of
capital in the job-making

process

which

begins

with

ex¬

panded investments in new plants,

&

Engler

East Broad

erly with
pany.

Company,

Street. He

was

16

form¬

Westheimer and Com¬
j

■*'

1

(ft

The Commercial and Financial Chronicle...

28

but possibly

5%

the

from

billion."
1

GAINSBRUGH*

By MARTIN R.
Chief Economist, National

/

There

that

but

doubt

little

is

through

have been going

we

since the middle of 1953 deserves
the

title

in

spasm

tain

the

While

recession.

of

of

Sales: Because the
of business adjustment has
largely confined to the man¬
ufacturing industries, the impact
of declining production and em¬
ployment upon total incomes has
been relatively slight.
Indeed, if

the

such

steel

as

ber,

some

about

the
M.

has

R.

Gainsbrugh

consider

incomes,
the tax cuts which went into ef¬

The

would

of the

causes

de¬

three

seem

to

be

cutbacks

number:

in

defense

penditures,

in

ex¬

changeover from in¬

a

slump.

business

has

decline

slackened notably in recent weeks,
arid the indicators which pointed

unanimously six
show as many

so

ago

now

signs of upturn
cline.

It

to .add

continued de¬

as

b.e^useful, therefore,
the sources of current

can.

.up

weakness,

well

as

ing factors, in

attempt to eval¬

an

the
I

the

of

sources

would

current

identify

Unemployment:
month

In

for

have comprehensive

the

April,

which

we

Census data,

unemployment declined by about
quarter million.

This, however,
considerably smaller decline
ia. unemployment than a normal

was a

seasonal

would

trend

duced.

in

Increases

employment,
and

retail

were

not

dace

the

agricultural
work,

before

trade

usual

in

decline

durables

has

Easter

in

unem¬

Almost

ot
of

as

labor

our

force is without work today as in

.third

been

of

the

In addition,

unemployed

without work

for

15

have

weeks

more.
Finally, we must antici¬
pate a significant rise in unem¬
ployment next June and July,

when

so

leave

school and

to

many

enter

(2)

into

of

people

our young

be

can

the

labor

expected
market.

Consumer Expenditures

Durables:

gories

and

of

and

In- addition
consumers

of

of

the payment

amounted

Although
consumer

to

disposable income.

to

debt

service, most
paying premiums
insurance or pension

were

private

plans, amounting to another 5%
of
disposable
'disP°saWe income in : 1953.
1953
OthCTwntoactual obligations, such
as

contract rents

and

on

of

inventory liquidation
one: thus
far, we

or¬

an

seel

derly

no

tendency for the business decline
to feed upon itself, or for unin¬
tended inventory accumulation to
frustrate the attempts of business
firms to achieve effective balance

their

between

sales.

Despite

volume

in

and

stocks

their

curtailment of

some

durables-^particularly

in the credit market for durables
—consumers

still

are

spending at

of about $230 bil¬

annual rate

an

almost imperceptible de¬

most

cate¬

expenditures

durables
1954

the

in

down

were

contractual

pre-

of

costs

years—including

the

even

postwar

the

sion year 1949—may be at

reces¬
an

end,

*An address by Dr. Gainsbrugh before
Industrial

Relations

American Iron

and Steel

Session

Institute,

York City, May 27, 1954,




of

the

New

living standards.

Nor does
it suggest an inadequacy of cur¬
rent purchasing power which has
to be supplemented by emergency
Ort

contrary, the actual picture is

of strong, stable consumption, accompanied by a continued high

level of individual savings,

reversal

tion

to

such

the

first

inventory

.

as

of

accumula¬

in
far

1950. /It is

ahead, but at somewhat less than

but

at

was

the

about

a

recent years,

over

pre-World

War II level." At the present

time,

the

likely that inventory liqui-

annual. rate "of
With the peak of in¬

first-quarter

$5 billion.

ventory liquidation passed, indus¬

debt repayment has exceeded

new

try can look forward to

credit

four

new

extension

for

about

months, but this has made
tively small dent in the

rela¬

a

record
amount of credit outstanding. Re¬
payment requirements represent a
prior lien upon current income,
and

therefore act to restrain

new

purchases, not only of durable
goods, but also of many types of
nondurables and services.

(4) Defense Spending: Expendi-

tures for national security
a
as

are

at

orders which is

a pace

more

compared

Korean War.

fiscal

with

annual rate

an

billion at the end of the

1955

decline

of

Budget estimates for
for a further

provide
several

billions

in

de¬

fense

outlays, although this trend
could be quickly reversed should
there be any worsening in inter¬
national tensions.

Agriculture:

incomes

have

held

Agricultural

tolerably
throughout the months of
declining industrial activity, and
up

well

served

to

buttress

the

flow

income, in contrast to the
experience of 1948-1949, when de¬
clining agricultural incomes com¬

current consumption than it

was

during

the

winter

bleak

months just passed.

(3) Investment: Continued high

the current horizon.

penditures

for

Business

plant

new

equipment are scheduled at more
than $27 billion in 1954, a slight
decline from last year's extremely

cession
of the
set

began.

Earlier

their

1953

re-

estimates

Department, of Agriculture

net

about

to

farm

the

income

1953

level.

in

1954

But

it

at

has

recently revised its forecast and
now expects that "farm
operators'
realized

show

net

some

income

reductions

will

this

likely
year,

a4-+1

/tin

l'v

An-V*

official

indicate

SEC

corporations

trrif»r»

canvass

that
are

surveys
In..

4U

A

by the
manufacturing

holding firm to

their investment plans and are in

deterred

no

sense

of

recession

by

which

the months

we

have

al¬

ready experienced. At the same
time, residential construction has
turned
up,
and we seem to be
headed for another year of more
than one
million
new
housing
starts.

State

and Local Expenditures: Outlays by state and local
governments
for- >■ schools, high¬
(4)

ways,

etc. continued to rise quar¬
the rate of about

ter by quarter at

no

cases

A

the

since

one

many

4*V*

rn

pounded the difficulties stemming

in

ex¬

and

half billion

dollars.

but that

rmestion

There is

demands for

state

and

tries

local

I

don't

want

to

from

pass

products,

for

industries.

this

contraction

and

which

bearing

upon

have

the

ex¬

the final

of busi¬

a

expansionary pressures of a longcharacter

term

the

American

at

are

work

he

on

economy.

it;

accompany

ward

toward

trend

ficient

(3)

the

the

non-Federal

acted

as

an

in defense

offset to

outlays
the

has

decline

expenditures.

suggest,

of

course,

thinks

user

of

as

the

steel

as

competitive product, i.e.,- when
considers steel casement win-

indus¬

it

creates, the investment it un¬
dertakes, and the central position

ef¬

it

occupies both

as

market for

a

the output of other industries and

use

supplier of material and prod-

as a

reform to stimulate both individ¬

other

to

ucts

-

industries—are

a

business

and

incentives; and dramatic indication of its central
(5) freer trade among the nations importance to the national econ¬
pf the world, at least those outside omy. But while the fortunes of
the Iron Curtain.
■/
K
7 this industry and that of our econ¬
Adding up the plus and minus omy move closely together, it is
■■

signs, the conclusion that emerges
is one of economic activity taper-

nevertheless

ing off at somewhere around current levels. The cyclical correction

justments that

which

began
be

to

seems

almost
at

or

its

true

that

in

the

cyclical swings, the ad-

our economy works
magnified in the ad¬
justments required of the steel
industry. Its products—raw, semi-

through

ago

year

a

near

of

course

final

are

However, the general pat- fabricated and finished—are repcurrently prevails-—and resented in durable commodities
likely to continue for the re- whicb have in the past experi-

stages.

that

tern

is

year and well into epced the widest fluctuations in
strong, sustaining- ddmand. As a result, the industry
forces, rather than a preponder- HaSj .been, extremely sensitive to
ance
of either expansionary or expansion and contraction in both

mainder of
1955

this

is

—

of

V
^ -ipyestment activity and final con'-v.-sumer demand. Indeed, the impact

contracting fdctbfsS >v

^

-

Position of the Iron and Steel ■'/ ~of

Industry
In

.

business recession upon steel
production has been considerably

,

detailed discussion of the po-

greater than that of durables production as a whole. Over the
seven, cyclical contractions since

to-

l920r:tt'/TWer¥l Rese7ve";tode5

remarks; about* national

my

trends, I have id^lifrerately avoided
,

:

'durables manufacturing declined 42% on the average, from

dustry.; As I,pass from the general .of

business outlook to the more spe-

cific. interrelations that industry, each ingot production has declined
prospects for between the steel peak to the following low;
the
general and
striking.
I
that, the

would

that

of

aspects

specific

the

61%

of

the

whole—

part—iron

and

course

the

cycle,

fall

whole

ampli¬
severe

decline, of course,
exception.
While

no

manufacturing has fallen

off

since last July, steel in-

14%

25%
(31% from the peak rate in March

of the business

of

necessary

inordinately

as

got production has slumped

to restore the health and vigor of

the

again

durables

steel—are
further,

adjustments

average—an

half

current

been

has

tied closely together; but
that in the

the

aggregate durables production.
The

that: is, our national economy—
and this rather large and funda¬
mental

almost

as

interrelationship:

fortunes

on

tude

become
two

stress

last

year).

The

particularly

drop in iron and steel ac¬

severe

upon

tivity is, I think, not unrelated to
the character of the postwar boom
•One need only think for a mo¬ through which we have been liv¬
ment about the size and scope of ing.
The Conference BoarcJ has
the iron and steel industry to ap¬ recently inquired into the struc¬
preciate how closely its fortunes ture of the postwar industrial ex¬
and
that of the
We found, for example,
economy
as
a pansion.
whole
must
be
entwined.
Its that by 1952 almost half of the

: '

;

dimensions

be commonplace -24%

may

increase

postwar

in aggre-

but to'an outsider,'*gate output (as measured by the
they give awesome testimony to Federal Reserve index of industhe importance of this-one indus- trial production)
was accounted
try, and therefore the responsi- for by increases in the production
bilities associated with it.
J
of machinery and transportation
to most of you,
i

1.

•

In
one

A

our

_

.

P

J.L. 1

_

*

J

1

n

M

\

««ta

n

n

/i/»/Vi* v»

equipment. The same high relaeighi jobs is created tive importance of durable goods

manufacturing economy,

in every

directly in the iron and steel in-

dustry. A somewhat larger per¬
centage of all incomes paid out
by manufacturing
industries is
generated through iron and steel
production.
Since the war, 10% of manu¬

facturing investment in new plant
and equipment has been for the
expansion or improvement of
iron

n

_

and

steel

capacity,

(i

mignt

Production earned into early 1953
when,

compounded" by inven¬
accumulation, the demands
upon the iron and steel industry
reached record proportions:
tory

A More Normal Pattern
As

we

look

toward

Expected
the

levels

activity which are
likely to emerge during the rest
of 1954 and early 1955, it would
of

economic

parenthetically, that in seem reasonable to expect tljat the
trend of recent years, toward in¬
a world divided into hostile camps,
our
numbers
count
but
little. creasing durables production, will
note here,

the iron and- steel inat the core, both as a
market for the output of other
industries and as a supplier of
materials and products to other

economy,

dustry

is

I would
that the
impact of such nondefense outlays is the same as that of de- industries, in a recent analysis or

not

household;
well

try—the employment and incomes

deterrent
rate of such governmental outlays potential that
is apt to be set by problems of aggressiofr)
And in the complex of indusstate and municipal financing. At
this stage, however, the pick-up in tries that make up the national

such

it

I think that these three dimen¬

(productivity) of both
capital and labor; (4) further tax
ual

as

sions of the iron and steel

up¬

more

find

an

dows or stainless steel kitchens.);

Among
these I would note: (1) continued
population
growth;
(2)
tech¬
nological progress and the de¬
mands for new capital formation
which

power

personally

consumer

industrial

activity.- A number of basic

ness

(I

into the house and the

day-to-day

course

electric

industry Which
is most commonly thought of as
the producer of a basic, raw mate¬
rial, now puts its product direetly

saying a word
about certain so-called long-term
stimuli

of

noteworthy that

without

pansion

but

and railroad services); it appeared
as a major seller to 135 of the 199

brief iteration of short-run forces

making

(not only of primary metals,
and
structural
clay

petroleum

significant degree.

a

you.

levels of investment represent one
of the most promising signs on

from inventorv liauidation.

How-

of

in line

with

current rate of about $47 billion, high $28.4 billion. Private

of $53.5

to

any

experienced

we

half

it

however,

run,

that

seem

one

measures.

consid¬

This represented

year.

short

the

expenditures have tended to main¬
tain the aggregate income
flow

the

governmental

dation will continue in .the months

pressed,

characterized

either

have

group

felt it necessary to alter

or

their

a

as

does
con¬

last

consumer

support levels, when the

buying

sumers

found

certainly
American

that

suggest

incomes

of

level

goods

This

ago.

year

not

tenths

suggests that the abnormally high
durable

an

more

(5)

on

to.an annual rate of $28.2 billion,
as cohipared with $30.7 billion in

'the

of

This^is. npt to

of total

expenditures
first

which

final demand has made the process

about three-

have

of

consumer

home operation took

Jhave held up well all through the

quarter

high level of
spending. This strong,

(2) Inventories: The rate of inventory liquidation has apparently
and. the operating reached, itg peak.

another^e'nTh "cifi'ncomT^Il

still

XnOnths of the recession, consumer

I

repay¬

mortgages

on

debt

of

ratio

required

principal

15%

of

to consumer

year,

consumer

about

sorts

the

raised

Last

interest

for

all

and

service charges

debt

of'

to finance the pur¬

homes

of

continued

a

April, 1949 and 1950.
a

continued

a

a

chase

factory employment in
industries.'

percentage

a
a

pro¬

sufficiently great to pro-

durables

large

have

construction

ployment because of
decline

report,

been

of recent years

erable increase

latest

1954

One of the results has

in income.

cline from their record outlays of

rmums,

following:
<1)

their

in

ted, debt service, insurance

Current Weaknesses

weakness,

credit

consumer

the stabiliz¬

as

uate current trends.

Among

billion.

$29

practically offset any decline

lion,

ment

months

in

of

have

beginning of this year

found that: "The heavy borrowing

by consumers for various types of
durable
goods. However,
the

downward

high

But

incomes.

of

rose

than $5 billion to

a

ventory accumulation to inventory
liquidation, and reduced dema'nd

course

Decem¬

credit

fect at the

disposable

the Council of Economic Advisers

off

3%.

cline

and

potent factor in making for
effective demand during the 1949
was

national

'product
slipped

Repay¬

1945

more

increase

An

Credit

consumer

all-time

an

.11% since last

gross

1953,

from little

de¬

July, and

dealers
margin

;

Between

ment:

produc¬

1954.

Consumer

(3)

than in others,

clined

all in

at

been

has

these markets is

in

left
automobile
virtually no profit

with

total;, indus¬
tion

current

ample,

violent

trial

be

maintained
only
by in¬
competitive retail prac¬
tices—practices that have, for ex¬

industry

—has
more

sales

of

It may

tensely

and

iron

backlogs

the

that

adding

Retail

(1)

been

being

our

industrial sin¬
ews—

of

vestiges

have been worked off.

worth

expenditures: obviously the the inter-industry flow of goods
impinge upon different in- and 'services, the iron and steel
dustries and have quite different industry appeared as a significant
material and labor requirements, purchaser for 74 of the 199 indus¬
two

would

process

and household appliances

cars

level

cer¬

last

the

as

for

M

•

continuing
weakness in our economy in the
second quarter. Set against these,
however, are a fairly impressive
array of stabilizing factors:

we

what

"

*° .be *
sources
of

These

f

out of eight

one

;

fense

In

Industrial Conference Board

jobs in the manufacturing econ¬
omy is created directly in the iron and steel industry, Dr. Gainsbrugh holds the industry is now faced with the challenge of
utilizing its increased and potent capacity to serve the nation
at peace.
Estimates, since last war, 10% of manufacturing
investment in new plant and equipment has been directed into
the steel industry. Holds cyclical correction in business, which
began a year ago, seems to be near its final stage, and fore¬
casts a steady level of activity well into 1955.
Pointing out

not more, than 4 or
1953 total of $12.8

Stabilizing Factors

'

maining

a

Thursday, June 17, 1954

(2680)

facturing production; in the first
quarter of 1953, 57.1%.) If this is

then the rounding out of gen¬
eral business activity may lead to
revived steel demand at levels
still somewhat below those suggested by postwar ratios of aggregate industrial aetivity to iron and
steel activity. In this respect,
so,

1954-55 may be ushering in a pat-

■■'

Number 5334... The Commercial and Financial Chronicle

Volume 179

tern * of

industrial

relationships

/which has been unknown to the

-

(2681)

:V ;irbrijari(i steel indijstiy for

some

obviously,

t
;

(If the cold

war were

verselyj

•;

to

hypothesis

are

off. We should then

have to expect a return to

.

son

f

state

a

mands which are inherent in

mobilization

return yet are in

war

p artial

or

challenge,

-

the

same

no

There is wide variation in

no

the

discussion,

this point and serve as

7777/

t-

ande an ^qlvihg .?■ / Yielding:.Less Than 3%:
.Hartford fire_
.^echjwlogy# tq7serve. the/needs of *
IT ilaUon a
-In meeting tfeat y .'7'C6iitinei^jl\i:C^.klty
tent_ capacity

7:'77; //
' Current /•/'' Indicated'
•/•>' V;3' ' rv77 Price
Dividendr /;/ Yield

Business

777 $3.66*7.V 7 i '82 =
127- ' /;" 2^60/, ; ' ^2.05 V

p Aetna Casualty & Surety____7_____ 142 7- - :- 3:00 ; '. V2.ll
stability and jflexibiUfy
'•
whuld seem /to be majpr: pre- V. 77 Automobile, Insurance-____i
92
2.00- 7
2.47
.P requisites—reconomic stability and •; •V St. Paul'Fire & Marine.
•
45 777/7.-1.0077. ' 2.22
Federal Insurance..32
'
" 0.70J
industrial flexibility i Iknbw that "
; 7 2.25
these" are nbt easily come, by an :
Republic Insurance
1.1
53
7-.
1.20; ' 7 2.26
Y/Globe & Rutgers__„.42/7 1.00

1

:

7
..

'

____

7'

.

v.bodied
1

ingenuity ;• em- vin the technological devel-.

ppments: of Ifeeent years

*

inconsiderable

not

are

'

7
•

First-quar¬

assets.

7/7

llartford

Boiler___7_i_____

Steam

Fireman's Fund./.

2.38

;

2.65
93
/ ; 2.50'V " ,2.69
70% 7'.
2.00,
2.84
61
7 1.80 /7;7 2.95

operating statements suggest "
that your firms have not bowed 7
I- supinely to the spectre of fixed
costs,. and the emergence of new
7 products -and j new"Juses , for. old <
products bespeaks.' the vigor of a 7

;

;

.

.

-

.

77

challenges to it.

7

,

r

of America

ers

as

testimonial

a

ity;" with
abounds,
that

,

New Amsterdam

ingenu¬

43

Fire

80
39

V

41

L

Security Insurance.-—
Pacific Fire Insurance.—

...

1.60

3.72
3.75

1.50

3.82

1.60

,

31

1.20

27%

1.10

been

60

2.40

4.00

American Insurance

30

1.20

4.00

Fidelity & Deposit.

75

3.00

4.00

Springfield Fire & Marine

50

2.00

4.00

in order to review its wage
structure briefly.

North River.

33%

1.40

4.16

"A national survey of

51%

2.20

4.27

42

1.80

4.29

activity leads us to expect
ual
improvement in the

57%

2.50

4.34

25

1.10

4.40

merits

of

the

union's

case.

seem

In

Fire Association
Seaboard

1952, average hourly earnings

of Philadelphia

Surety

production workers (in blast
furnaces, steel works, and rolling
mills) have risen from $1.99 to
$2.14 (March, 1954), straight time

Northern Insurance

National Union

44

2.00

hourly

Home Insurance

44

2.00

Jersey Insurance

37

1.70

Fire___

39

1.80

of

earnings

from

weekl^

$2.11, and average

-

$1.94

Fire

Camden

Insurance

New Hampshire Fire

to

earn¬

ings have held around $79.50, de¬
spite a sharp drop in average

Hanover

weekly hours (40.0 to 37.1). Dur¬
ing this time there has been
marked stability in the cost of liv-

Pacific Indemnity

jing.

at

113.5

The

history

of

This has resulted,
the interplay of

productivity.
however,

from

market factors and has not, in my

knowledge, been furthered by the

proliferations of contract formulas
which

may

which is

so

Bache Metal Dept.
&

Co.,

36

Wall

City, members of the
New York Stock Exchange, an¬
nounce that Louis I. Loeb has be¬
with

associated

Metal

Department.

the

In

his

firm's
new

capacity, Mr. Loeb will deal with
non-ferrous metals, both in the
domestic and foreign markets.
Until

recently,

He is

a

Loeb was
Miles Metals

former resident of

Mexico where he

i

Mr.

of

Vice-President

Corp.

was

engaged in

mining and industrial ooerations.
From ; 1941
to
1947, Mr. Loeb
served
Board

with the

War Production

in Washington.




Fundamental developments now

4.59

?

.

under way in this country

4.62-

/

scientific

4.9Q

are

4.92

tant

32

1.60

5.00

•

.•

1.70
1.35

1.50

5.45

evaluation

many reasons

both

of

for these differences

as

the yield is

a

past and prospective operations as well as an
investment practices and future dividend

current

they reflect investor preference for particular names
/ *
V\' >
/ ' ;y '-'.7/'/'■

as

or

- securities.

Hartford
is

lowest

the

Fire, which sells at a price yielding less than 2%,
of the group.
The leading position this company

occupies in the insurance industry as Well as its long and success¬
ful
are

underwriting record and the conservative financial policies,
all factors of importance in this connection.
The bulk of its

investment

15%

than

business

in high grade bonds with less
Thus, regardless of the trend of
stock market fluctuations, Hartford's current dividend
funds

in

or

are

maintained

stocks.

common

payment amounting to less than 50% of investment income seems
secure.

number

A

of

other

companies

are

in

a

somewhat

similar

holding securities in this position are considerably less than where
earnings and dividends are dependent upon dividend distributions
from common stock holdings.
Therefore, payments are valued
more

highly.

In

some

of

of the other

cases

among

the low-yielding stocks the

consideration. For example, Continental
Casualty has been particularly aggressive in expanding its opera¬
tions in the field pf accident and health insurance. More recently
'it has obtained control of a life insurance company and is likely to
element

growth is

a

expand profitably in this field. This undoubtedly is part of the
reason for the high valuation of the shares of this company.
Another

factor

accounting for the low yields on

ticular stocks is the buying that has
This

buying has been

a

par¬

taken place by pension funds.

concentrated in

stocks with the result that

some

the so-called

high-grade

few issues have been bid up, while

others have been ignored.
From this it becomes

apparent that

an

investor must be very
Differences in

selective in his investments in the insurance field.
fields of operations,
as

well

as

in

an

increase

in

trends in underwriting and investment policies

other factors are important in evaluating the securities.

past 75 years," he

added.

wealth
able

•

LaCroix-, said

Mr.

as

created
a

their

that

made

new

avail-

of scientific
developments and
is "impossible

consequence

technical

and

and

ramifications

to calculate. These vast and

research

projects

in

varied

the field

has

Weed

the

upon

William

F.

of Michi¬

Corporation, Buhl Building.
participate in the firm's
negotiation of mergers, sales; and
private financing of established

businesses, according to W. Sydnor Gilbreath, Jr., President; Mr.
Weed was. at one time senior

member of the New York Stock
Exchange firm of Weed, Hall &

Co., and he has been engaged in
the investment business in Detroit
for many years,
Mr. Weed's association with the
was

previously reported in

the "Chronicle" of June

food

we

10.
I

eat,

Joins Frank Edenfield
(Special to The Financial Chronicle)

has

son

"New and

people

become
Edenfield

affiliated
&

with

important segments of

83-59
Northeast Second Avenue. He was

making themselves

formerly with Gordon, Graves &

are

the

.

MIAMI, Fla.—Lewis B. Robert¬
Frank

in

—

First

will

of modern life.

felt

joined

gan

He

reasonable comforts and pleasures

our

Michigan Corp.

will have revolutionary ef¬

the
clothing we wear, our housing and
transportation, and will add to
our cultural opportunities and the
fects

First

DETROIT, Mich.

of firm

chemistry, electronics and atomic
energy

Wm. F. Weed Willi

the

for

we

occurred in the

general

implement sales and
improvement in busi¬

ness."

belief that

dare think ahead that
far, our people will experience
many
more
apd continuing
changes for betterment than have
tury, if

Also it takes into consideration current market condi¬

policies.

our

living

generation will be sub¬
stantially improved, and during
the next three quarters of a cen¬

5.36

are

of

coming

5.29

0.60

Manufacturers

reflected

through
research

likely to bring about impor¬
changes in our economy, Mr.
standards

our

5.15

11

of

technical

and

LaCroix said. "It is

_—

been

ties."

3.00

33
25%

long-term

4.55
4.55

...

28,

There

the

in

a

Providence-Washington

reflection

profits of
confidence

agricultural

More:

Fire

dustry is lagging appreciably bebind the parade," he reported,
"Farm income is slowly beginning
business and gives to rise as prices firm. This has
tempo

price trend of investment securi¬

Merchants &

Street,

York

come

and
us

position. St. Paul Fire & Marine has most of its assets invested
in municipal bonds, the income from which covers current divi¬
dend payments by a substantial margin.
The risks involved in

Louis Loeb Joins
Bache

or

Equitable—

York

New

inhibit the flexibility
essential to continued

progress.

New

5%

American

in. this ;; tions

wages

country / bespeaks the-"long-term
parallel between real earnings
and industrial productivity.
The
labor force of your industry has,
with the rest of American labor,
shared in the fruits of increasing

f

Yielding

3.00

sur-

our new and
one of optimism."
George Forrest, • Los
Angeles,
partner of the firm, said that
business was "booming in Cali-

old clients is

industrial
a grad-

,

61

<

increased
the domi-

4.44

2.00

61%

Surety-

Agricultural Insurance

in

1952, 114.6 in
April, 1954.) Matched against steel
workers, who gained 15 cents in
average, hourly earnings, and 17
cents in straight-time
earnings,
automobile workers received nine
cents and ten cents respectively.
-

American

(The Consumers' Price Index

stood

•

45

for

"opportunities

rarely

in

us

■■
//;.; // •
fornia and the industrial capacity
leveling off of business of the area is growing by leaps
during the past six months has ob- and bounds."
scured the immense potential of
Reuben Thorson, Chicago partour
industry.
Necessary ^adjust- ner and Chairman of the Midwest
ments have taken place and while Stock Exchange, noted that midcertain segments of our economy western industry was shaking off
have
b<apn
uncertain
in
their the effects of the business down¬
trend, others have torged ahead, turn.
"Only the automobile in-

5%:

Insurance

partner,
have

to

each day and

nant attitude of both

,

_

coming

numbers

"The

3.96

Fire

_

„

said Morris F. LaCroix, se-

However, in view of the timing
and
proportions of the demands
served upon the industry, it would

the

greater

firm 75 years ago.

3.93

Westchester Fire

Aetna

opin-

our

investors

3.90

Maryland Casualty..
to

are:
LaCroik

Morris

'

passed since the founding of our

3.91

4%

.

nior

3.40

Yielding

,

■

,

ion,"

3.00

.

stronger

.

house \yith'.40

.

87

to comment upon

r

i'n'v est'ment.
.

-

3.63

a

a

.than;• 'it has enjoyed: in
:p".\
" | ■'
Lloyd
W.
Mason,
managing
partner, located in the firm's l^ew,
/York office, reported that activity
.in the investment markets "is cUr; i-ently
running at? near record
breaking levels. New investors

7;0^5C)^^p'aj5t*

3.57

1.65

American

Great

niversary. The

-give pur; country,

:.economy;
the past.

an-

3:50^

2.00

45^2

National

which your industry I
though I rather doubt

propose

'

56

________________

Casualty.

•vwill

^poditicqLMiddntyi^d

the-

firm's 75th

"In

U. S. Fire Insurance....

'

otbcj forms of investment. ^All of
L*these ichatigea: .and^"^opppftuhijies

s.,

to
coast
''f;was
n
d
f
3.00/P ' T 3.54 fi ;,.fou s"tde ii ,m
B 6
o
in
■/'pP'A 2.001 ^
3.57
^ 1879.:7
T 3.00 "/>
3.57

84

7

a

^

84%
56

Employers' Group

of you have looked
them in quite that light! I

not

: 3.14 '

1.80.'V:

Anniversary

rations" through commofl stbck' and

•

June 12, to'

•

3.40 /'/ 7, 3.37

51%

,

the and

over

.

celebrate

2.99

;b7% 77/ 1.8077

'10177771

-

i&7Cuftis 7"
' assem-i
bled at Hamr 7

f

;

'

many

upon
do

the

7

Continental Insurance...

be interpreted

to

;

Accident'_______.^_:___C_

:Ihsuranc6_;___:_/_":_;____^
Merchants :Fire, insurance
Fidelity-Phenix_//________

all

-

—

..

iltoh, .M 'as

'■'*777 777:
31% 77 7 1.00 7?77 3.14 7.7

American Automobile.

The recent wage

can

2.00

..

!7.

77N77'77k7777/./;,;//;

/Insurance

Standard

demands of the United Steelwork-

.

777

4%

to

.

66%

Phoenix

:

I find, too,, that I am not the
only one that holds your industry
in esteem, and indeed, throws out

;

Yielding, 3%

.

Firemen's

*

dynamic industry.

Glens Falls Insurance

activity

that

.

ter

;

7 son

.

;7A;-

68

Insurance Co. of North America....
.United States Fidelity & Guaranty.
•

.

I

a

■

,

*

and

"

.

7v

"

jihagination

'

"

'

•

'

"y/e.
*hat this trended* 7 Fhited States is definitely.-onthe-, wards/larger income for the lower
rise, according to the unanimous ^hd ^middiq'Pincome groups/'will *•
belief of the' 34- general partners'.grow
^fhe years ahead to' pro- 7..
of P a r.h e,■ • ■ 71;*7rJ r vide the • funds -for an -ever -in^ '• ■"
Webber'-Jackr r :
c:creasintg, pwnejrsHip In our Corp

165

r 'challenge,"'

f^n'5ndusty'such"'|is;yquj^bpV'^V.'i 7
f

•

;

Paine, Webber, Jackson &Turtis, founded in 1879, now has
40 offices from coast to coast.
Principal partners of firm see
business activity oh rise, and investment
activity expanding.

■•■v

tabulation of 50 fire and casualty company stocks has
v
according to the current yields they provide: 77'/''

a

:;"7

_ _ _

•

~

Investment Firm Celebrates 75th

basis for this week's

a

been arranged
"■

t-

% I'

of

illustrate

To

thqn the One which it has just met
so successfully.
That is the chal¬
lenge of utilizing a new and po-

Shares

;

less rewarding,

•

'

currently available on

leading insurance corpRapies. From a low of less
than 2% on some'shares/Returns range all the way to 5% or more
'
with an average for a representative group close to 3.70%.

'

:

the yields

a position to
participate in developments which
being capitalized at a higher rate in some companies selling
a.lower■ yibld.'basis.-.C*,;•'v£-i.,.»>«.77 ' •
V

daring and at

less

time

are

-

on

<

-

This Week—Insurance Stocks

v

mobilizai
tion.);>."/
7/ ;Vf 7' 7',7V
r 7
If this analysis is correct, your
industry, is now* faced with a new
-

-

.

under¬

an

current wide variations in
yields does give incentive to
examine carefully some of the issues which
provide a favorable

~

garri¬
industrial. de¬

the

and

-.a*

as subsequeht events
may be disappointing either from
writing or investment standpoint.

heat up, however, all bets on this
/

a low yield does not necessarily indicate a high price
;that can not: be justified by future operations. Cohhigh, yield: does not' indicate a low price for the shares

7 for the stocH

-

.

'

14 years.

29

investment

markets,

Company.

Co.,

g# -

30

The Commercial and Financial Chronicle...

(2682)

If carried to

^

Aie Britain and U. S. Doomed to

Ever Rising Pnblic

Spending?

may

sooner

this trend

excess,

are

later give rise
that even a re¬

or

the

to

any

is

far from

that stage, at
far as official opinion
concerned, and the flow of
very

rate

as

feeling
cession, with all the losses and inflation will continue for a long
risks
involved, would be better time before it can provoke such
reaction.

Thursday, June 17, 1954

the

preservation of Iranian sover¬
eignty.
" ' ;
Our
five
international
com¬
panies should be able to make the
of two worlds: stability and

best

We

a

By PAUL EINZIG

greater

abroad,

and

on

inflation.

logical

are

And
basis

for higher wages.

office

in

drastic

with

1951

reduction

a

program

of

public

selves

of those who would stand to benefit
by additional expenditure.

ex-

government

office

claimants submitted

for

pensioners,

old age
officials

Hitherto

penditure. Yet,
having been in

i

than 2V2

good

ably

I

it has

ment's

failed

to

cut

claims.

expenditure,

i?

or

t

,.

arrest

even

i t

non-stop

s

increase.

this

T

o

extent

some

the

was

;■

consequence

the

of

appli-

cation
Dr. Paul Einzig

the

of

rearmament

in-

program

very strong
decision to raise

The

the salaries of Members of Parliament must be regarded as a major

victory of the policy in favor of
budgetary inflation,

inevitable
'v.

their

refusal

any

to provoke

reactions.

this all.

Nor is

Apart from the

budgetary aspects of the problem,
of

fears

recession are
public

major

a

liable

ajs0

influence

to

poiiCy in favor of creeping inflation as an alternative to slump

hented from the Socialist Govern-

leading to chaos and Communism,
ment.
The delivery of arms
or-.The recent scare of an American
dered in 1951 did not get into its
business recession made most- of

full stride

until

inevitable

that

1953, and it

was

military expendishould rise during the early

ture

of the Conservative regime.
is not
the whole story.

years

this

But

The

has

Government

new

failed

and

arrest

to

also

the

reverse

trend of social expenditure.
Although it succeeded in cutting
some
items, it had to consent to
allow other items to rise.
Every
attempt at retrenchment in that
field provoked a sweeping wave
of protest on the part of the So¬
cialists, and more often than not
the Government yielded to the
-

pressure.

After

two

one-half

and

tion

is

0r

a

prolonged

than

depres-

while in theory the correct

sion>

poiiCy would be to steer exaqtly
haifway
between
the iwo, ' in
practice it is seldom possible to
both

avoid

£0r any

boom

and

recession

iength of, time., Since the
have
duly
realized

authorities
that

the

be

would

the

evilgi-Atheir
anti_recession policy and tactics
are
bound to have a slight bias
af

favor

in

of

two

0'n Jhe"safe*side^
....

l»

..

,

of

effect

combined
,

v"

this

.

,

ing trend of government expendi-

attitud.e and of demagogic pressure m favor ® increased gov-

ture,

ernment

of futile

efforts

check the

to

ris-

is reluctantly led to the

one

conclusion

that

Parlia-

under

mentary democracy with universal
sufferage we are tated to
witness
a
non-stop
growth
of
public spending.
Nor is Britain

country

the

only
experience

this
The

is

same

United

States

cratic
the

which has had
since
the war.
the position in the
The

Republican

made

no

from

this

party

point

advent

Government

in

of

1953

difference

of

any

of

demo-

advent

fundamental

United States
the

other

and

countries.

view in the
more than did

the

Conservative

Britain.

in

Which-

political party is in office
the pace of spending is set by
party which favors more and
ever

government expenditure. In

more
or

of

out

Socialists, New

office,

Dealers

spending

mocracies are

continuous

is

that de-

doomed to almost

inflation.

h°Pf 4° c*ec* ll

The only
„r, ^

moderate it lies Jn technological
Progress leading to a fall in the
c0# of production, as a result of
whlch inflation could be held
morf, °r .lass .und<f .c°ntr°1- 11

J""*? be idle to rate these hopes

?iYen /u, employment
and the ex,st!ng balanYe °£ P°we/
between employers and employed,
tbe chf"ces arf tbatmor®
? £en
an no£| ££le adoption ot
°

labor-saving

devices would not
result in any substantial reduc-

Jj?n? ln

0

blen

Britain

decision

of

the

House

increase

to

mons

result of the

as a

the

majority
of

Com-

salaries

of

its members by 50%. The amount
involved is in itself
negligible,
The

additional

£300,000,
ocean.

a

But

tial

mere

the

this decision

calculable.

cost

over

the

of
likely to be in-

are

of

just
drop in

consequences

Until

section

is

now

the

a

substan-

Conservative

party was trying hard to persuade the government to Out expenditure.
decision
of

to

Members

will be in

CcJ

In consequence of the
increase the salaries

and

a

of

moral

economy.

Parliament, they
politi-

much weaker

position to preach

the

in the Panhandle Eastern
enables them to make money

the FPC

cyclical

or

•

case

Goods Industries

Consumer

on

Bank

Banks:

with

shares

constitute

selected

income

gradual

improve-

appreciation potenial. I am fully aware that interest rates are-not rising and are
probably not going to rise and
competition is rife.
On the

that

hand, banks have been

ice for two.

during

gfealLdeal

a

theyihad

an&

service

der

little

very

of this time

to. do but

ren-

hold

government
gross
national

.the

With

bonds.

on

three decades and

or.

expansion ceases.

product now

conceded
horo\|er $350 billion, the

mal ^.t well

banks

in

are

run-

.

.

.,

_

be

One

serious

no

make

can

threat

to

the

for

case

a

domestic

integrated
producers,
though there should be in¬

even

creasing competitive pressure on
the marketing end. One can also
make

a case for the leveraged re¬
finers, in view of their low earn¬
ings V* multiple, but for my* own
part, I would *prpfer~to have a
stable-full
of
good
exploratory

companies, which seem to me Ho
be the.essence of the oil indus¬
try, namely, find the oil and turn
it

the

to

over

other

fellows-.to

handle, to treat, Ho
bookkeep, and to supply the ne^er
ending capital expenditures.
to

process

The

?

natural

gas producers,
companies
with
greater emphasis on that segment

meaning

the

:

industry, have

traction

.

...

.

should

price stability.

of the

Intermediate

that

in

double at¬

a

the

this

of

use

In the intermediate category, we

discounts

be maintained jand even
Combinations will take place
and jsorne, sort* of branch ^banking

should

commodity is growing faster than

comment on the following:
Air Transport: The domestic air

Jusiness again and,

by ahd large, loans and

of

institutioii. The application of the
FPC decision could, over the
years, mean that even the present
straight pipeline companies, with
^eir enormous credit capability,
could buy up reserves and become
factors in oil as well as gas reserves. The whole group .could
stand resurveying and this factor
compensate somewhat for
*°r^"!;eFIP. s°llclfu<fc over an
ever diminishing rate base once

group

ment and capital

other

instead

reserves

n222£ an eleemosynary venture

properly

safe

a

gas

upon

push up the costs of Middle East¬
ern
oil, as in these areas the na¬
tional
budgets are part of the
lifting costs, and, therefore* there

domestic

transport industry will face a year
of squeeze between rising costs

rise.v

oil

ture is still

modity
from

and

the

price struc¬

rising and it is

insulated

world

and

a

com¬

isolated

supplies.

herej and tlierl will permit insti- and lower load factors.
tutions

to

Radio:
There
The
television,
radio,
be an upward adjustment of and electronics
industry is an ob¬
fares and, sooner or later, there viously
rising
industry "■ even
will be mergers to rationalize the though this year will constitute
industry and end up with a half- somewhat of a pause while in¬
dozen trunkline systems to cover ventories and the color
problem
the nation, which in air speed will get sorted out. The chief
difficulty

widespread organizations.
These institutions enjoy some tax advantages and money is ploughed back
into
the
business to
compound
over

develop

strong,

may

the years.

The banks in

be half the size of the State

general.have not ^oon

here for the investor, or the spec¬

pace with
industry and I
should think that over the future

kept

ters' of strength. These eduities, it narrowed to a few, their shares
to
me,r should
return
stand considerably higherfavor for the defensive portion of t^an at, present.
Nevertheless, ljt
an
individual's portfolio,
taking ^ a grueling field,
the place of preferreds,'and, to a
Chemicals: The industry is, of
degree, of bo^Ss. In some cases, course, a series of industries and
stockholder action
could
bring needs specialized study. There is
about mergers, which codld mean probably, by and large, adequate
seems

an

enhancement of the
to

seems

me

shares.^ It

there is still

a

capacity,

lot of

some

stretch in bank equities compared
to the fully developed structures
in Canada and

overcapacity,

or

time

and

be needed to diT

may

where

consult the consulting services
and have them lead me around

began
left.

are

of
broader coverage will
higher rates and rising in¬
come, followed by the manufac¬
turers, the parts companies, and
the

brand

ducers,

names

where

casualties.

/

'Perhaps

air

also

be

after

taken

lose through the persistent infease in the cost of living. Even
£fom thls P°lnt. of
c?ndf-

tl0ns. a^e chanpng to he detn"?ent ,<?f. stability The escalator
clause" is included in a large and
increasing number of wages contracts, and even in the absence
o£ Ju.ch 4,clause tha 1workers are
sufficiently powerful to secure

conditioning
over

downtown

of

areas

the

obsolesc-

Electric

postwar
ities

period

have

search may just as well strike
here as elsewhere and the impact

Utilities:

During the
the electric utilfrom a price-

.

could

gone

smaller

earnings ratio of 8 or 9 to a mul¬
tiple approaching 14 but, if selections

are

meaningful

more

than

base

a

on

a

one.

made, there
can
still be found growth where
financially minded managements
are

and need not be labored
_

oil

and

Gas:

The

now.

The

industry

stock ratios.
With cheap
money, it would appear that this
backlog of most portfolios could

for

^7™ has' become'™

such equities off the ground from

Commission

practical possibility.

selling around book values to sell-

Department

ing at

tium

.

Resistance to

weaken

further.

assembly

rubber

companies
have never been appreciated dur¬
ing the postwar period and I con¬
sider

them

undervalued.

be free from

yet improving

com-

m°n;

the

-They

broncho

busting days of rubber and cotton
price fluctuations which are now
replaced by synthetics.
Rayon:

The

should

show

1

industry
improvement

rayon

some*

as the overdue turn in the
textile cycle takes place.
^

as soon

Heavy

or

Cyclical

>

;

-

In the

tion

heavy or cyclicals, men¬
might be made of nonferrous

metals,

the steels, and the rails,
constituting industries where

the

has

postwar
taken

dustries

revaluation

place

has

yet

which

in

so

to

be fully felt.

Nonferrous Metals: In the

ferrous

metal

group

in¬

many

non-

there is the

Uluminum
oil

an attractive one as it
has for the past 70 years, except

of wages at least in proP?1-'.10? to £he rise in the cost
°£lmng. There is now an agitation in Britain to link pensions
and other social service benefits
J?. .e c
a
Yfng lndex£{jls Is conceded it will convey

taken vof
'V. "

Rubber:

as

larger

A sub-group here—fertilizersshould continue to do well, in
spite of surplus crops, for reasons which are sufficiently known

carefully

able to transform such growth
into increased per share earnings

be

may

is

outfits:

are
sufficiently large to be seaworthy, and the incidence of re-

ing cities.

be

by this group

toll

should

expanding * their
operation to new population cen-

pro¬

'

My own rule is to look at the
chemical companies which sell in
the market for less than $1 billion

and

set

will

into fewer but larger self-service -

^dividends, avoiding excessive
dilution and

increases

the

♦

frightful

a

of

there

too many and too weak

markets

the

mean

the. labyrinth - of chemical terms,
which can scarcely be pronounced
^clr Igss remembered, and they
d.elight m. rendering a subject
which is ^fascinating somewhat
m°?"e obscure than need be.

In the

effect,

are

fruits

food industry the
have appeal since,
after over a decade of frustration,
they have gained the -maneuverability to scrap .sinall neighbor*hood
stores, transforming them

Food:

grocery chains

.

mfke ££l<: workers realize that,
faklnf a lon,f v'ew> they stand to

in

and,
There

broadcasting networks where the

gest the great postwar expansion,

England.

54

three

.

They will not be able inflation would




the great postwar phenomthe extent and brilliance
?/ 2J;S growth, may regain glamour
the epoch-making decision of
one of
e"a m

production,

and their equivalents in
countries, effectively in- employers are not in a strong
fluence official policies, owing to Position to resist such claims,
the popularity of their policies of
In order to avoid non-stop inspending public moneys.
flation it would be necessary to

Quite recently the floodgates of
through government expenditure have
widened in

the* groups

ters, and, when the process is far-and seek their potential. I relate
Workers and their unions would advanced, there should be rising their Capital expenditures to the
aaInY,
,Srea£er Par£ °£ any earning power "and larger divi- market valuation and, if the perrbenefit arising from such devices, dends. Unlike department store centage is alluring, I am inclined
in
f°rm of higher pay or chains*, they Have not the white to look further and place my bets
easier working conditions, and 'elephants in' the overcongested on the theory that such companies
,

other

inflation

count

°f New York in railroad time ulator, is to boil it down to a few
equivalent. Hence, 13 major dor entries because, in due course,
there will be a marked shrinkage mestic and many minor companies there will be fewer survivors, al¬
from the 12,000 or so bq&ks which
ar® an absurd wastage of money though perhaps not so great attri¬
inflation, just to be we have in the country to clus- an(* men and, when the group is tion as in the automobile industry

recession

graver

The
years

infla-

moderate

much smaller evil

a

siump

a

that

realize

us

through

run

dustries, intermediate, and heavy

govern-

Henceforth

liable

is

Natural Gas: The natural gas
utility industry, which has been

if

reason-

the

concede

to

will

other

and

with

to

grace

refusal

years,

pos-

inflation,

brieHy, divided* into broad categories of so-called consumer in-

.....

more

with

and

Investing Policy

sible, curbed/

so without exposing themto unpopularity
among

British to do

Eng.— The

Conservative Government assumed

I

East.

reserves ma

the
need and greed of governments'to

claims

not in position to resist their

of

barrels

Middle

leading to a fall in production costs, but con¬
devices will accrue to the benefit of workers

only, since employers

against
their
precarious -90

balanced
but more

greater
billion

Says only hope to check inflation lies in techno¬

progress

American reserves

North

of

rels

nicely

tends labor saving

LONDON,

page

question whether democratic countries are doomed

raises the
to

first

40 billion bar¬

in the

their stake

Continued from

the continued rise in government expenditures
under the Conservative Party rule in Great Britain, Dr. Einzig >*
Commenting

and
the
profitability

strength 'here
growth

than the continuous inflation.

continues

segment where two of
the four companies constitute ex¬
cellent Iong-term speculations.
Time

and

government

contracts

agoning interlude in the
may enable these two, which • do
Constituting a standby for
not command investor
approba¬
equity investors the length and
tion, to translate the annual
aspire to sell on dividend yields
breadth of the land, we can overof less than 5%.
throwoff of cash into balanced
,
look> or glory in> the flexibility of
Some of thb companies could our minds, which inveigh against capitalizations, giving substance to
thin equities and then reflect a
stand stockholder pressure to get the evils
of Europe's cartelizathe managements to improve the tions and yet are happy with the good multiple for a growth com¬
modity.
,
return on the rate base,
lifting virtues , of the Texas Railroad

a

respectable premium.

an

>3os.

In

and
-

pow

the

sanctioned

State

consor-

of the worid-^companies for

a

copper -

relatively

terms of
for

war

a

there

appears

inelastic

to

and

at

the

be

supply' in

world which must
same

arm

time

Volume

179

improve
is

living

Soviet

lead

had

has

While zince and

valued from almost

con-

to

constitute

roads, which
fixation in

a

its
should not

the

of

the

of

the

came

prices

to

Then

some

in

and

war

the

secu-

beginning
to
take into consideration the inflation of war and the reconstitutibn
of the political economy of the

the

eyes,
are
tossed out,
improvement in the railroad

stems

rity

zero

solvency.

of

forties

seem

inves-

ad- : tors'

but

comes,

debt

(2683)

figure

If the eastern

price washout, copper
strong

drastic

been

Ghronielej

traction.

the

bloc.

a

remained

justment, if it
be

there has

conditions if it,
challenge of

withstand

to

the

Number 5334... The Commercial and Financial

sys-

were

as

in the oil

other extractive

and

world-wide

enterprises

The nonferrous metal group

has r has been

rest

even

country

and impor¬

scope

tance.

and, if the discovery
is large in relation to the
equity

Besides

doing all of this in
proportions to a given
portfolio or fund, there would be

base, the reward can be very
great. *
(6) They can invest abroad with

suitable -

another

all of its complexity and so far
remaFkal^e:?,iCOWitrty. < In the postwar years with inadequate inducement tax-come
a
long way from the days
Many of the railroad comps^i^j^^Vbarly /Jifties investors were wise, but here again existing en¬
when these companies were
en-/ now have strong, capitaliiaiioha;-/<^?qpied i-rin revaluing securities terprises may more properly un¬
cumbered by heavy debt, and in-/ good
.earnings ppwjei^r."ifeftectv gradually- the
social dertake the risks, the supervision,
stead they are now, in some in- i dividends which cam and sKouid.\ revolution,, the
new
plateau of and the transfer of technology to
stances, so lush with excess cash. ; increase, particularly, with .capital rational, output and income, the appropriate
foreign
markets
Further, instead of riding mines expenditures .flattening putvra^d ^enormous monetary base which rather than being undertaken as
to exhaustion many of the com¬
declining, and again
*been created, and the'hew independent v e n t u r e s, and if
world
panies have become diversified national product where it is and earning power of
a
gross
nastability improves, as it
where it is apt to go as the years
enterprises; with multiple inter¬
tional production of $350 billion gives signs of doing (witness the
ests, with exploratory staffs, and go by, they should be revalued, as
against $75 billion- for * the - approaching convertibility of
and
a
thirties. Whether the change was sterling and the easing of infla¬
research, and all the beginning Instead of an Atchison
attributes of growth enterprises, Union Pacific, we should end up
of physical output or of dollar tion in one- or two areas) this
in
combination
with
becoming • with a dozen or more of similar devaluation did not matter since could' constitute a good diversi¬
There can be a strong the revaluation had to be made* fied
increment
of
holding companies and financing caliber.
earnings on
or
almost banking houses. Thus, upturn in the shares before they in
terms of dollars in security companies which are becoming
the neglect
conventional
and
relaand concern which become
prices.
'
they have been accorded by the tively dull, although I suppose
Now the much awaited recesinvestment fraternity
for many the nature of the operation itself sion has taken its 3.66% toll from
will always add some excitement
the previous peak of gross nayears have been much overdone.
i

severe.

in

31

which

area

well

engage

tion

more

of

the

could,

very

the drive and atten¬
professional investor.

The
no

.

professional investor today is
longer alone. He can call upon
is

or

part of the $5-$6 billion

a

investment trust

or holding comaggregation of capital. Act¬
ing "in* concert with others, and
calling
upon
Wall
Street
and

pany

.

other

streets,

funds

and

vessels

the

'

and

pension

even

other

nonbarnacled

of

capital, there could be
for
putting
enough
in a given situation and

basis

money

reinstate the Staff function of fi¬

without

nance

boat because of

endangering the
lop-sided cargo.

a

Hulberf S. Aldrich Elected President of

Mining nowadays can be less of
a
gamble than in the past and
what with the ability to contract
the output of new properties to
the government a great deal of
the curse of commodity fluctua¬
tions is being taken oA of the
mining picture. Hence, this group,
both in the large and in the small,'
should reach a higher investment
estate and, for a variety of reas■:

metals

sons,

by

be

may

governments

as

here and there.
the

In

there

tional
of

area

is

still

capitalizations,

great deal to be
done in eliminating unnecessary
preferreds
and
replacing
them
a

with fixed debenture
the

debt

low

in

the

assets

All of

relation

this, of

elusive

of

the

to

and

is again

course,

ex-

where

roads

a

Part IT
A

Professional

gen-

this

In

a

tihies

multiples,

they

valued

at

They reflect the probable

Approach

For

ently interpreted.

''

V Steel: The steel

industry is

of

of

nence

passingthrough 5 its • test period.
question as to where the
breakeven point is, is being an^
swered and, of course,-the main

The

feature of this

big

companies

their

given

have

tion

so far, price cutting
negligible though vari¬
ous
absorptions are taking place,
and the wage increase in the off¬
ing may also be absorbed.
Al¬
though the industry has put back
huge quantities of capital during
the postwar years, yet the major
companies are selling for $50 an
ingot ton as against $250 cost for
new
integrated facilities.
With

that,

so

has

been

3%

long-term

that.

perma-

"Capitalism

industrial

to

pany

that

capital

peaked

expenditures
and

out,

the

.

Z It is, of
we

course,

shares

were

can

the textbook

cause

when

steel

and

low

100%,

sell

you

capacity
said

you

less

than

20%

to

25%

ow,

when operating

than three-fourths

at

of capac¬

tinl

in

door

a

wo

cap a

s

nnt

ot

which

r^nd

ually rislnS earning power and
slowly improving dividends. These

companies, by and large, will be

in
in

talent

relation

The
and

a

railroads,
half

of

after

a

large scale

bankruptcy, have become revital¬
ized.
It is true that they carry

only about 60% of fhe freight of
the country
and are giving up
passenger

owned out-

fits wbich decay under the dead

ranitalistir

Vvill be

-

en-

amount

of

capital

not be volcanic nor necessarjly very profitable to the in-

the

companies >irhich

business little by

yet the 60% in units and
dollars is a great deal more than
ever
before and the trucks, now

little,

to a large industry, have
problems of labor, regula¬
tion and rates and are complain¬
grown

their

ing, man bites dog, ,of unfair com¬

petition from the rails. Railroad
technology and budgetary control
have improved enormously and,
leaving aside the low
interest
equipment obligations, the indus¬
try has only a funded debt of
$6% billion, which is one of the
few areas of the economy where




Federal

functions,

Government

in

j

customers,

*

,

and

long-

exnenditurea

even

influenced by po-

and

distribution of goods and the

income

capability

them.
But

the

to

consume

'

nothing

(2). They

can

done to take

place of what I call the Gen-

eral Staff function

oil

the financial

perhaps at
too vigor-

community

which

times

exercised

was

(3)

They

can

was

Albert
Executive

of

invest in the true

invest in the

1907.

into capital expenditures

potential.
invest in

all

of

good reasons for this atrophy of power. In the thirties securities
prices were
being re-

new

only

L.

Muench

of Western

Company

York,,

New

of

Larchmont, New York, was appointed
newly

a

created

post.

Mr.

of Administration

also

Island,

Long

Muench

The Associa¬

appointed Robert E. Watts

to

succeed

Mr.

Muench

Mr. Watts has been Assistant Secretary since

as;

1948.

was

graduated

was

born in Fall River, Mass., on

Phillips

from

following

ago,

the

Academy

in

in 1930.

April 3,

and

1924,
,

.

-

,

j

joined The New York Trust Company 23 year

his

graduation

from

Yale

University.

He

was

appointed Assistant Treasurer in 1939, and elected Vice-President
in 1943.

He

was

elected President and Director of The New York

Trust Company in

1952.

Among his outside affiliations, he is
of

executive

the
the

committee

National

Discount

of

the

a

director and member

Bridgeport

Sugar Refining Company, and

Corporation of New York,

Company,

Rockbestos

Products

Brass

Company

director of the

Noranda Copper and Brass

Corporation,

Charles T.

Wilson

Company, Inc., and the Penn-Dixie Cement Corporation.
Mr.

is

Aldrich

also

Trustee

the

of

Excelsior Savings Bank,

He is Treasurer and Director,

Defense Fund, Inc.; member,

Association of Re¬

City Bankers; and General Chairman for 1954 of New York

serve

Heart

Association.

He is an active member of the

Association

Union, River, Yale and Down

Clubs.

ingamble

new

Association's

in the

many

Muench

Aldrich

parcel of existing enterprises and,
have been

risk

and

Stanley A.

Albert

Bates

Secretary of the Association since 1943.

He

Town
can

C.

received his Ph.B. from Yale University

over the years, or other such type

with

succeeds

The New President

all.

that there

Trust

New York USO

chemical company to turn re-

(4) They

State

elected Treasurer.

L.

Secretary.

so-

a drug outfit to invent something that other people will copy,

dustries

He

John

for

search

York

Vice-President, and John C. Bates, Vice-

Washington,

financial

is true

Ploch

Brearley School and Greer School.

a

the New

Ploch, President, Nassau County Trust Company,

elected

Council

Port

Cal developments may be part and

It

F.

Vice-President,

been

the

but

F.

was

certainly in the past
quarter of a century has been
exercised most squeamishly if at
ously

June 4.

on

called growth companies and hope

or

was

Buffalo,

and

"tic.l considerations,

to

supervise the flow of production

William

President, The Marine

and

par-

order

Mineola,

Mr.

compound interest institutions
ticularly the monetary ones, have where the ploughback of money
rightfully been taken over by the remains in paper and not in plant.
Some of the

scene.

William

-flT

ree&vabStoUtthe enVrmous sometimes
of

Hulbert S. Aldrich

Hulbert S. Aldrich

vesZces have to be i"d*iously allocated to
t h
stockholders, management,

command,

named

enternrisps

resources,

at

elected President of

was

Club, Lake Placid, N. Y.,

mtvemenfh^

niay

dry up th

Buffalo,

Aldrich; President, The New York Trust Company,

City,

jjan(j 0f bureaucratic organization.
gu^. nej^ber will they be strongly
nronelled

Company,

Neilson, President, Bank of Gowanda, Gowanda, New York.

tion's

^e/e

Trust

Albert Muench is Executive Vice-President.,

Bankers Association at its 58th Annual Convention at Lake Placid

has

such as we have been
Prone to think of business in the

»

to

relation

York

vklue outfits which occuPy a uniQue position in history> beinS neither risk
the multi-billion dollar

constitute the American industrial

Rails:
decade

com-

the™ inheritence'taies^n- shackled and their increment will
b.Y
social responc
sibilities
the

have all contributed to

Hulbert S.

New

«rowth and improving standards

past nor

Marine

Treasurer.

paniea and ™ait f<?r

it

-ti

of

then, inner ta

Start
■

the

their command

growth

ity.

their

Since

ratio is
when it gets

cheaper when operating at capac¬

ity

an^at

be¬
buy

though the shares

even

forcing

+Kia

the
r.nm

of this kind acts

that time,

the operating

available

were

with

hold the major

-

unfortunate that
at

than

effective

as

elected Vice-President and John C. Bates,

Vice-President,

outfits

new

was

only when it is in being, but also
when, as always, it IS only a
threat
It disciplines even before

now

could not buy the shares when

operations

to

SSI
Competition

com¬

have

advance still further.
;

comnarison

all should spell

yield basis for steel
dividends especially

ppo-

within, in-

comoetition

more

country needs at least 80-90 mil¬
better

i™

from

can

in-

thp

/S™ tivfv^nir
k hLLdSiPn't

employ 60-65 million people, the
lion tons of steel,

which

an^a?nces^ntlyySeath^g °*
This

of

Drocess

a

ion

a

structure

much

a

mu

of

process

rPvnlntinni7P<?

pp^antlv

nomic

the

is

destruction

creative

the

are

a

Trust Company,

Club, New York, succeeding

William F. Ploch, President of Nassau

money

the world,
So, it is my theory that security
prices, while sharply separating
the marginals from the impregnables, may establish a certain stability at higher multiples. The
investor at that point, which may
not be far away assuming that the
threat of war is kept at a distance,
will have a tough time in figuring
out what to do. He will be confronted with several alternatives,
(1) He

one

we

quarter

that'

capitalizations in good ratios and
recognition that if

a

the financial compowerful General
Staff, which overlooked industry,
criticized it, changed it, reorganized it, or, where necessary, destroyed it. This is all in line with
Schumpeter's
famous
definition
century,
munity was

battle cry of massive retalia¬

own

time in

first

a

this

is that the

answer

the

century, it seems to me we
have
the
beginnings of a base
for the professional
investor to
act decisively. In the beginning of

now

Stanley A. Neilson.

being

are

twice

Company honored by the 58th

Convention held at Lake Placid

phase we are
changing the multiples wherever
called for and, instead of great
enterprises selling at 6, 7, or 8

This is all rather

double

President of New York Trust

present

prosaic, pedes- which should be normal to an
pincer movement of declining vol-* trian, and perhaps even platitudi- economy of this size and magnifiume and prices being allowed to*
nous, but it brings me to the in-; cence, just as 6% or 10% money
go too far in any. downturn phase dustry on which I am really bull- might be appropriate for a less
of the business cycle. This whole ish: that is, my own; namely in- developed or inadequate economy
such as exists in many parts of
group should in time be; differ¬ vestments.
will be less likelihood of

New York State Bankers Association

or

year

Correction of Price-Earnings
Ratios

properly

the

strategic assets of the world,
much as gold was the sinew of
war in
the old days. Thus there

a

is

two, by one means or another, we
will again re-establish the economy at peak levels or thereabouts,

of

taxes.

lot of things are wrong and plant
on balance
may still be excessive,

stockpiled
constituting

there

eral confidence that in

too

nature

corporate

eastern

and

issues, since

considered

be

can

product

of

mortality.
Many of
industrial and technologi-

where their impact on the

enterprise may be large, will their
significance be important,
(5) They can discover resources

The

bers

New

York

Membership

Bankers

Association

represents

849

institutions, including practically all commercial banks

State with

deposits in

include investment

eign bank agencies.
36

State

members from

excess

of $34 billion.

Other mem¬

banking houses, savings banks, and for¬

Included in the Association membership are

other

states scattered

throughout the country.

-

S2

The Commercial and Financial Chronicle...

(2684)

There is not the slightest

Continued from first page

that
but

which

in

-will

The first chemical plant
ica

recent,

in Amer-

opened in Boston in 1635

was

by John Winthrop, Jr., to turn out
.saltpeter and alum. True, it was
/.not a potent factor in American
industry which at that time was

but the
colonial settlers needed chemicals
for meat-pickling, tanning, dyemg, and soap-making, and thus
chemical manufacturing made its
lirst contribution in this country.
agricultural,

largely

and

industry grew slowly,

The

began to take on some importance
By no means could
it have been called a creative in1850.

around

dustry at that time. It would have
described better as an in-

known essential
chemicals, such as

making

dustry

.sulphuric acid and alkalis.
The
organic chemical industry, largely
based on coal tar, began to grow

fame

to

far

so

is

size

as

chiefly in
tremendous
flexibility, both in the raw mate-

and alkalis had exproduction

England, Germany and France.
it was still small.
It
was
not to become a well-inte-

and

dyes,

many

specialty

it
is
generally
agreed that the comprehensive
chemical industry as we know it
and

venience,

Industry
Industry

:

.

^

•

its

chemical

the

Second,

fry

nature,

very

is

•

„

the

of

fabric

the

into

United

well

industrial

States

chemicals

of

materials

xaw

during

or

more

required

as

in the manufac-

of other induschemicals and alin

processes

tries.

In

fact,

lied products is the only group

the 72 industrial classifications of
the

Commerce

States

Department of

which

United

supplies

%iots to every
Tt
It

prod-

other group.

nhvimK
obvious

ic
is

fmm
from

+hic
this

+w
that

chemicals,

either directly or m-directly, are indispensable to the
1

^rL0ity0m
—whatever it may

be.

.dustry

not manufac-

may or may

ture

some

self,

as

tneat

is done

Your

in-

chemicals

it-

by steel makers,
oil refiners, and

processors—to mention

just

few—but the fact remains

that

industry requires chemicals
stage in the completion

every

at

these

packers,

-food
a

of

some

of

a

finished

product.

rather

gests

This

emphatically

sug-

that

what happens to the chemical in-

dustry

is

those who

industry,

important
are

and

not

only to
in it, but to every

even'

to

every

in-

dividual American.
.

Tnird, the chemical industry
wot

a

despoiler of

^materials.

On

our

native

is

raw

the

contrary, the
findings of its research have had
practical effect of conserving
our
supplies of vital raw materials. In part, this has been done

the

by the synthesis of natural prod-




processes,

unique
abundant
a

manufacturing

between

k e t s,

and between raw ma-

fecials.
•
'
There are dozens of fertilizers,
pesticides, and fungicides cornpeting for the farmer's business;

dustrial

to

known V

.

accomplishment

highest standard of living in
world is quite
meaningless
unless we have the security toperpetuate it. The loss of this se¬
curity is an ever-present threat,,
the

and

industry has a continuing re¬
sponsibility to help preserve what
it helped create.
In direct rela¬
tion

to

now

my

this

thought, I bring
next point which is:

Not An Independent

That

;

not

the

stand alone—but rather

can

which

one

manu¬

Seventh, the chemical industry
is not the chief

beneficiary of the
products de¬
veloped by the research on which
the industry spends a quarter of a
and

new

to

of

between themselves
countless other products in
10 0oo every year.
Most of them the industry. The same is true of
firJd no immediate commercial use chemical process raw materials,
but others open up new avenues cotton linters versus wood pulp,
0f industry.
7.-;
r; coke by-products against oil dethe

and

infinite

ajmost

fs

re-

iaboratories develop about

search

,

„

..

.

,

*x/m0pl*s of this One
™hlchr1S of particular interest in
J51?®
S

^

as do

rivatives,

.

Every part of the industry could

_

competition

th!

nn

natural

solvents comte with chemical solvents—and

throughout the whole in_
dustry/
I1: is important to remember
that in chemicals, an improveQn

y ° A
uncertainties of the merd fn quaiity can be as big a
icek°x or the spri g-house to pre- competitive advantage as a lower
?eiYe

r
n^at-. ^css tnan

improved

today, compared to three to
generation ago. Compared

one

a

20

years

the

ago,

death

rate

chemical industry
harrrde8S Sas refrigerant which
was noa-t°xl(y and would neither

home

refrigeration,

deep-freeze, air-conditioning, and
fnnric

The

thp

rhpmiml

is

inrinctrv

-,11

»ixtn, the chemical industry is

n°* statlc- ft is of necessity one

mianr aerosol inaus

683

$2°0»000,000 m 1954.

i!Anotner outstanding example
an indu8lry created by produc*s
research is the plastics ina billion dollar industry.
vou are familiar with the
hun.dreds °f uses for plastics,
Whde these uses are important,
ec*ually so are the jobs resulting
from this discovery. Twenty years
?g0\the Plastics industry was in
its infancy. Today 34 chemical
workers
terials.

employing

60,000 employees
plastics for molded or

use

products,

articles

over

products,
sheeting.

fabricated
or

and

these

extruded

reinforced

plastic

testify to this.

Be1tween 1913 and 1919' for ex"

ample, investment in chemical
manufacturing doubled in the
United States.

The industry has

continued to grow at the rate of
10% a year, compared to a 3%
average for all industry, until
today chemicals and allied products rank sixth among the manufacturing industries in value of
products sold. The chemical industry is exceeded in value of

sales only by the food, iron and
20,0.00 steel, petroleum and coal, ma-

manufacture plastic maOver
4,000 plants with

laminated

riod from 1935 to 1939.

of

part

film

—

end

and

chinery, and automobile industries.
While prophecy may be
dangerous, the President's Materials Policy Commission expects

picturej

a

ities interlock like

all

piece

each

zye,

the

others

all

in

of

ingredients of such
Freedom

property and engage in
It

merce.

the

guarantees

which

tives

and-

consists

than the right to vote and

more

best

freedom

are

understanding.
own

which

7usv to push; forward;-

essential

environment

of

will"

progress

environment

an

encourages

an

upon

accomplish its
when the pieces

march

our

require
The

saw puz-

We

emerge.
that

jig

a

depending

to

Only
place does the picture
in industry know

purpose.
are

spur

com*

incenT;

to

men

their

efforts, the privilege to

sary

business

There
which

are

have

the

synthetic textiles

contributed

much

so

fertilize

chemicals

because

soil, kill the weeds, size the
yarn, bleach the cloth, and give
fabrics

cotton

to

our

advantages

un¬

grandmothers.

produced the deter¬

required by the automatic

gents

washers
relieve

old

their

Chemicals

which

dishwashers

and

wives

our

of

of

drudgery.

household

produce
the
for jet air¬

helped

heat-resistant

much

metals

planes, and the fuel which powers
them.
Without chemical insula¬
tion

couldn't

we

have

the wide¬

spread advantages of electricity.
The chemical industry, in
seeks

constantly

materials that
better

create

to

serve

brief,
new

human needs

than existing materials,

to

improve all materials, and to im¬
prove processes so

cost

that production

be lowered and the sav¬

can

ings used for other purposes. All
this adds up to
greater health,
and comfort, and a steadily
rising standard of living for the
individual American citizen.
He
ease,

is

the

chief

chemical

of the
accomplish¬

beneficiary

indifctry's

ments, just as he is the chief
beneficiary of all industry's ac¬

The industry cannot stand still,
because in some respects it is like

complishments—yours
ours.

as

well as

without

interference.

itations

save-^

have

run

unneces¬

Whenever lim¬

been

imposed

upon;

freedom, the progress of sciencej
and
industry has faltered. - Wehave seen it happen under fascism
in

Germany, under communism
Czechoslovakia, and under so--

in

cialism

in

Great

V

Britain.

American

industry can play a
major role in keeping that from
happening here. We must be con¬
stantly alert to our enemies' ef¬
forts

to

divide

into

us

weakening

groups,

strife

internal

-

hostile*

ourselves
their

for

.

by

advan¬

We in industry form a vital
cutting edge in this situation, and;
must do
everything we can to-

tage.

thwart
with

these

all

of

command.

subversive

the

efforts.

kt

strength

Industry united

our -

can

do«

it.
•

'•

V•. '

More

"V

\

1

.1•

of

Understanding

'

V

r

■

.

'

-

Industry

By People Needed

My final point also has. to do*
with industry in general rather
the

with

alone.

a
five-fold increase during the
quarter-century ending in 1975.

»

integral part of

an

closely integrated
group of industries whose activ¬

a

than

Synthetic Textiles

Chemicals

Not a Static Industry
sixth

same

anH

_

provide

iJ^OOmmln 1°954° "

-companies

tion, only 17 cents of the medical
dollar was spent on drugs in 1950
compared to 21 cents in the pe¬

known

own MryX7icalis,7ePproS\entlofSe institutions. ^Tst tcompUsh"
self-snravint? disnensers manufac
Bast accomplishtured bv the infant^aerosoUndus?ndt Plans for the future
u-J

today.

to the American Medical Associa¬

also

str0ng competition.

♦

comparatively
Yet, according

are

the

Jye aveFa£e cooling unit, but it
hastened the development of our

the jobs they

declined

bacterial infections

blood

uncommon

120.8% above 1939, the prices of
0nly advanced 92.5%—which certainly
is
sterling
evidence
of

frn7pn

the

of

has

fever

common

more

chemicals and allied products had

burn nor explode. Only 25 cents
worth °* I"18 Sas. 1S required for

flouri8hing

scarlet

price. While the wholesale price to easy living—but cotton remains
years^ago, the jndex for March compiled by the king of the textiles, partly be¬
brought out a Bureau of Labor Statistics was cause of its natural qualities, but

T

is

America's vast industrial

their

.

number

Industry

industry

is
independent industry—one

an

which

chemical

up

tion, and the independence to

markets as do the older type foils

^

indus¬

outstanding chemical
facturing centers.
are

one

^

next

and invest in the tools of produc¬

other chemically produced wrapPinS materials vie for the same

^

my

try's responsibility does not end.
Our proud boast that we have

.

any number of chemicals competing for a place in textiles and
previ- clothing,
for moth - proofing,

uuu

the fact that Louisiana and Texas

92%; from diphtheria and mea¬
sles, 73%. Thanks to sulfa drugs
and antibiotics, deaths from the

tightly than any other single industry.
While
it makes
many
jproducts sold directly to the ulti*nate consumer, its sales largely
consist

na¬

from

industry,

not

'process-

tween products for similar mar-;

Fourth, the chemical industry is
cj0Sg f0 exhausting its re-

an

woven

the

and antibiotics encounter severe

isolated or desegment of manufacturing,

is

example,

and wax coated coverings. Drugs

as

tached

For

new

people think of industries
steel, coal, oil, automotive,
and other large industries.
It is

«mt

Major problems remain

unsolved.

branch, the petrochemical
be made from alternate raw.
industry.
It
is
estimated - that
materials and by several; differ85%
of
the
establishments; in
ent processes, there is keen comthe
fast-growing
petrochemical
petition in every line. The chemindustry are located in the cres¬
ical manufacturer never knows
when the research of a competi- cent-shaped area between Baton
Rouge and Texas City. This is
tor will turn up a better product,
especially important to this Gulf
or one that can be sold at less
Coast area, and is largely respon¬
cost. There is competition be- sible for national
recognition of

prodsubstitutes for

as

superior

^

that

wot, however,

be done.

teeming

point, I first want to say that hav¬
ing reached this high plane of in¬

the

that remains to

' chemicals which can be produced

.

tcnown—in the sense, for instance,
.euch

bottom.

is much

There

search possibilities. The scientists

Well
Weil

Not
Not

,

u

the

at

out

not

today dates from this period.
Chemical

suitable

ousiy

shut off,

were

rendered obsolete drain

processes

billion dollars annually.
The real
anything
The chemical water-proofing, crease resistance, gainer is the individual American
industry in the United States faces shrink-proofing,
and what not. citizen. Countless lives have been
n0
iong_term problems of raw Sythetic fibers compete with each saved and many diseases con¬
material supply."
other as well as with natural quered by products of chemical
■ ■
7fibers. Films such as cellophane, research. Our chances for recov¬
Chemical Research is Growing
"Ply-o-film," "Cry-o-vac," and ery from pneumonia are 25 to

and

causing
considerable hardship and inconchemicals

and to contribute

the

at

con¬

0ther materials, but also into new
materials having new properties

dependent on Eu-

the First

-drugs,

grow

products and new processes
top, while chemicals and

new

can

materials not only into

ucts

for many chemicals. During
World War, imports of

rope

processing

for

facility
raw

grated industry until much later.
still

It has

techniques

However,

were

has

^

tbat

utilizes and in its

r;al<?

-of

We

industries

other

fact

tbe

combined

the

oeeded

uhimate consumer by as

from

occurred around 1910
when American production of sul-

-concerned,

jphuric acid

to

to

industry

innova¬

and

tional health program—and this
supply. In part it has omy.
includes
not. only
humans, but
been done by the development of .
animals as well.
Ways must be
more efficient extraction or utiliChemical Industry, Is Not a
found to produce more food for
zation processes. More than that,
Monopoly
there is good reason to believe
Fifth, the chemical industry is our expanding population, 7 and
that such contributions to our na- not a monopoly industry. There bring it to the table at less cost.
tional wealth can be expected to are more than 9,000 chemical Insects and plant diseases, rust
keep right on flowing from the establishments in this country, and corrosion drain billions of
industry's laboratories.
7;
most of them small, but including dollars annually from our econ¬
l
^his is of immense importance at least 27 with assets of more omy. These and many other prob¬
to our economy.
We no longer than one hundred million dol-; lems obviously will not be solved
depend upon chile for, nitrates, lars.
The sales of the largest by the chemical industry alone,
or indonesia for rubber. We make
chemical company — du Pont — but certainly it will make valu¬
our
own
chemically. If lumber represents only 8.5% of the indus- able contributions to the over-all
industry
effort
in finding the
or steel should become scarce, we
try total.
have glass and plastics.
There are 16 major competitors solutions.
Agricultural
chemicals and in plastics, 19 in sulphuric acid, The Expansion of Petrochemical
plant £0od
furnigants to protect 50 in coated fabrics, four in photo
Industry
Sf0red crops, and chemical aids to products, 15 in explosives, 117 in
Another example of the chem¬
the preserVer and processor have anti-freezes, 1,200 in paint—and'
ical industry's ability to expand
been
estimated to increase the so forth. .vv.y:.
is
the development
of its most
qUantity of food that reaches the
Since most cftemical products recent

much as
one_third.
Products of chemical
research have saved millions of
the 1880's and to develop in- douars in
growing non-food crops,
xlustrialJfood, medicinal, and dye sucb as cotton> Let me quote what
chemicals
of
relatively
simple tbe president's Materials Policy
jstructure... ■■ y
Commission says on this subject:
P suppose the industry's first
«Tbe chemical industry differs
claim

the

or

Research

tion, which are the industry's out¬
standing characteristics, pour in

"

been

basic inorganic

products

known

laboratory

funnel.

a

great sources of

of

comparatively

is

growth

period

its

although

the

cause

tinue

—

emerge

ucts, or the discovery of alternate even more to the over-all econ-

is commonly supposed

as

—

to

semiworks stage — along
with those
now ready for commercialization,
still

Is and Is Not
America

sure

are

research

from

Whai ihe Chemical Industry

doubt

not yet discovered

products

Thursday, June 17, 1954

We

chemical

believe

it

industry

of

the

ut¬

most

importance that American,
industry today have the under¬
standing of the people. We believe
in industry's responsibility to seethat this is accomplished. There¬
fore, my ninth and final "not" is
this:
^

The
able

"

chemical

to

carry

industry Is not
on
the battle for-

understanding alone, nor does it.
have any desire to do so.
In theworld as it is, restless and uneasy,,
the winning of understanding is:
a task that challenges the efforts
of all industry. Yet it seems to me
that the heaviest pressure in this
situation rests upon industry.

which

remarks

I

am

The

about

to-

make I have said

publicly before,
but I believe the problem suffi¬
ciently serious to warrant repeti¬
tion, if by so doing the desired
results

can

be

obtained.

Our enemies know well the im¬

portance of productive capacity in,
the

world

American

sought

to

today,

and

against

industry
they
have
bring two powerful

weapons—ignorance

and

lack

of

understanding.
The
American
people must recognize the true
source

of their economic

security
part that industry plays
they guide their ef¬
forts so that this security can be
cultivated and protected, they are
in peril of defeating their own
ends. If, in their confusion, they
and

the

in it.

Unless

unwittingly do things that ham-

,

(Volume 179

and

per
of

Number 5334... The Commercial and Financial Chronicle

stultify the true

source

security, the result could be

disastrous

that

security for
The

there

Continued

would

laws,

As

the

laws of nature, have no regard for
motive.

regardless

violation

of

whether

But this

maturity. We were by then a "ma¬
it was said. The frontiers were gone. Op¬

far

so

growth

as

concerned had disap¬

was

peared. Further large accretions to our wealth could not

comes

be

expected. Production-wise at least
fossilized, according to this philosophy.

those who brought it about

In

circumstances such

some

seeking the exact opposite
result.
There
is
alarming evi¬

well have been of

dence that thi3 is hot understood

few

by

such

no

consequence

notions

these

as

real purpose here.
It has the responsibility to do so
because until very recently, in¬

dustry has been guilty of the sin

of

that

Ameri¬

industry

can serve a very

of

omission

quainting
facts.

with

people with the
politicians, intellect¬

uals, and'labor leaders have been
hammering at the rank and file of
Americans

for

decades,

pound¬

stigmatized

industry

predatory,
social.

take

until

going

was

recent

The

battle

allowed

was

to

by

default, even though the
facts lay on the side of industry.
Industry
recently
has
made
go

some

in

progress

reach

The

the

its

minds

effort

to

up

effort

the

of

in

to

to

attack.

mass

Most

of

to

groups who for the
already know the value
of industry to the economy and
need no convincing at all.
It is

^Concentrate

believe

direct and

that

Immediate

there

is

a

Let's stop trying to influence the

nation, and concentrate
immediate

own

upon

our

communities

and

publics. Get the understanding of
our customers, our suppliers, our
stockholders, our neighbors
in
plant communities, and last but
not least, our employees and their
families.

These

know

They

us.

where

us

closed

their
York

New

I feel that

port,
In

we

the

in

chemical

do

it—and

make
—

clear

uation
cf

demands
of

all

us.

If

who

the cumulative
The sit¬

effort will be irresistible.

the

the

make

we

efforts

best

describing in

a

realistic

what

way
we

we see
should have

but

ef¬

fort, and attain at least part of the
much

plished.

chemical

The

future

be

industry,

confidence

and

accom¬

^

.

complete

tion,

will

in

with

its

own

the future of the

is determined

effort; and I

am

to

na¬

make

today

we appear

to be in danger of

a gross over¬

working and a serious misinterpretation of these new slo¬
gans. The results may here too be damaging. We hear
almost daily of industries which though not quite as active
as they were,
say a year ago, are chalking up a record
which has been seldom surpassed or even equalled in our
whole

history. At the

same

time

some

commentator comes

with a statement that this, though good, is not nearly
good enough for a "dynamic" or an "expanding" econo¬
my. It is but one step further to the assertion that some
sort of panacea must be sought and adopted in order to
keep ourselves moving ahead at the pace implied in the
slogans of the day which, of course, have meanwhile ac¬
quired a political connotation which drives public offi¬

the

cials

happy to tell you
*

the start has

made:

been

"

'

<

-

beyond their will.
Then there is the word "stable"—which is in fact

word to

Reynolds Adds: to Staff
(Special to The Financial Chronicle)

r-

SAN

: JPRANCISCOj --Calif.

I-^Robert Wilber has
the staff of

~

been added to

Reynolds & Co., 425

Montgomery Street.

He

was

for¬

merly with Schwabacher & Co.

Joins

Goodbody Co.

(Special to The Financial Chronicle)

CLEARWATER, Fla.—Edgar F.
Shilts

is

now

with

Goodbody &

Co., 605 Court Street.

-




was

announced
on

from

Wash¬

June 4, that with

a

little difficult to say
precisely What the popularly assigned meaning of the
term is. It often appears to be regarded by the rank and
file—and many more,
—much as an engineer thinks
conjure with. It would be

of what he terms
device which
which
the

roller rachet. That is

freely permits motion in

locks at

other

non-reverser

a

a

once

direction.

when
Few

one

a

direction, but

forces undertake to drive in
have

in
"stability"—in any real sense of the word—when their
affairs are moving upward. It is only when demand, sales,
prices, wages, or profits turn downward or threaten to
turn downward that we hear about this very desirable
characteristic called

any

great

interest

stability. One wonders if anyone any¬

will

plastics

industry

already

sub¬

best

the

486 companies identified with the

the

serve

The

statement

practices

is

manufacturers

,

of

*

;

,

based

policies

and

scribing to the

,

interests

public and industry.

recently

upon
most

of

the

a n n o u n

Statement

of

enumerates

the

which

Plastics

Industry, the
public

economies
herent

to continued

t i

o

e

n

n

d

public the number of companies;
the
Statement of Principles, but also

a

endorsed

far

segment of the chemical

very

points

are:

To "understand thoroughly
properties and limitations of

plastic

us."

tion, Inc., issued a statement in¬
dicating this prospect is now as¬
sured. Mr. Branch not only made

of

construction

and

all

Manufacturing Chemists' Associa¬

"This

rn-en¬

the

products.
C. B. Branch
C.B.Branch,
of the Dow Chemical Co., Chair¬
man
of
the
Plastics Group
of

so

satisfactions

(1)

plastics for

have

concepts

versatile

and

these

The four basic

consumer

which

basic

materials.

manufacture
of

in

gineering

seleca

four

will

bring to the industry
public
alike
all
benefits,

and

can

forward

t h

processors

a

Principles of

look

and

in
industry and puts into words
philosophy by which they hive
sought to govern themselves. It

ced

industry," said Mr. Branch, "has
made a spectacular contribution to
American well-being in the course

up

objective,

It

ington,D. C.

paid tribute to the plastics indus¬
try which opened its National
Plastics Exposition and Confer¬
ence in Cleveland, Ohio, on June 7.

But

yours—if all of us will
understanding of what
doing—how we do it—why

profits thereby

to

in the business world—and what

*

Branch, of Dow Chemical Co., Chairman of the Plastics
Group of the Manufacturing Chemists' Association, Inc., announces
approximately 500 companies identified with plastics
production have already subscribed to principles which assure
public of continued high standards in selection and manufac.v-.;;;;/..':.:'
ture of plastics.

slightly beneath the surface at the time the New
Deal nonsense took fire among the people. Of course,
neither we nor our economy has ever been fossilized or
incapable of adaptation to changed or changing condi¬
tions. It is plain that we have never ceased save for short
periods of time the long-term upward sweep of expansion.

industry

and you in

we

nearer

we

create local
we are

it

semantics.

own

C. B.

Danger in New Slogans

Washington.

win their sup¬

If

so

our

Industiy Adopts
Statement of Principles

high standards

■

generally if not universally
keep some

not sufficient to

are

not become victims of

us

Plastic

in

and you in yours

company

we

spokesmen

or

can

be

may

■■

us

seen

believe

they understand.

once

our

—if

minds

11

much

in¬

more

and

us

unknown

to

from

be

may

clined to listen to

direction opposite to that in which

been

about

who

people

are

had

a

viously, of the "mature economy" which had been wor¬
shipped only a few years earlier) became the watchwords.
Evidently such terms as these suggest a situation in which
the youth of the country can look to the future with hope
and faith. In some senses, they, of course, come very

more

effective method.

more

at all events the economy

happened that "dynamic" (antonym, origi¬
nally, for fossilized), "stabilized" (that is, with another
depression ruled out) and "expanding" (the opposite, ob¬

Communities"

I

Let

revelation of the utter fallacy

our economy, or

proceeded in

And

1

Your

on

a

desired, quickly replaced the word "mature," and

country.

that these efforts haven't

been very fruitful.

and

cedures and the programs

most part

obvious

war

traveling. But strangely enough, the pro¬
which had been developed as
suitable means for redistributing wealth in a "mature"
economy at once became the best to stimulate growth and
to ensure us against another such depression as that which
had so seared itself upon the memories of men in this

the

vision, and in the form of speeches
this

we

we

approach has been by radio, tele¬
like

be

so

has consisted mainly of the longrange

describing

people.

however,

now,

came

to be

us

might be
permitted to

were

activity going at rates to which we have become
accustomed, then it would be better to accept the verdict
than to force artificial
activity upon the industry.

Then, War

of the "mature economy" notion as it had been so widely
proclaimed. But the politicians of that day were nothing
if not flexible and alert to the possibilities of
changing
whims. "Dynamic" and "expanding" as terms to be used

did

years

Then

,

on,

nothing to meet the at¬

or

tack.

this

And

de¬

some

to such observers that ac¬

economic

taking a part or, perhaps, all of what had been
profits, subsidies to farmers, and more of the same order.

anti¬

occur

true that if natural forces

bent upon

selfish,

as

to

place. iLseems to

or

idea

they

basically

and

While

industry
little

time

same

The

fate.

our

hope of better things save by taking a larger share of a:
production volume. Fantastically progressive tax
systems, encouragement of labor organizations which were

best friends the average man has
the government and the labor
the

he

no

ing home the idea that the two

At

or

to

fixed

are

unions.

not

was

measure designed to "improve the conditions of the
poor" not by adding to production or to the efficiency of
distribution, but by robbing Peter to help a Paul who had

ac¬

the

Some

.

to

respect

philosphers

seems

readjustment

after

think

I

and

cans,

file

and

never

tivity may be excessive and that all concerned
the better served if some

a

historians. But
was
promptly
popularized; and used to attract a political following
among a thoroughly discouraged and discontented popu¬
lace. The early New Deal was the result—with measure

the rank

likely to tend presently to bring

or are

cline. It

might

to anyone other than

economic theorists

tending

had become

we

were

;

insistence of motion
only in one direction
quite dangerous. It is truly surprising to hear so
many who should be more thoughtful
begin to look for
all sorts of nostrums to
keep this or that activity at peaks
just as soon as there is evidence that natural forces are
be

can

state of

a

portunity,

the

through wilful¬
ness
or
ignorance. The tragedy
would
be no less complete
be¬
cause

as

ture" nation, so

them, regardless of intention,

and

ever been
really interested in stable conditions.
usually wanted—although realization of it is often
lacking—is one-way dynamics.

It

We See

scribed

They function inexor¬
penalize those who vio¬

ably to
late

where has

page

be

like

33

What is

no one.

economic

from first

so

(2685)

short span of time. The

'

■

(2)

materials

/

"Apply

materials

handled

-.'
to

the
all

uses,

designing

them

for

correct

.

maximum

:

plastic

industrial

and

by
»

end

engineering
value, per¬

formance and safety."

(3) To "use great care to select
correct plastic materials for

the

all

consumer;

them

and

insure

items,"

,

designing

engineering

thepi

to

value;

satisfaction, Safety
and pleasure to all users."
(4) To "sell plastic materials?,
industrial

all

and

items

and

consumer

made

therefrom,
on, the
materials, applica¬
tion and design, and free of
exp,
travagant, insupportable claims."
merits

Of
are

of

the

the

signatories

members of the

Chemists'

to

34

date,

Manufacturing
Inc.; and

Association,

exposition, scheduled to be viewed 452 are members
of the Society of
many
thousands of persons, the Plastics
Industry, Inc., and
should do much to show the na¬
include firms in Canada, England,
tion
what the plastics
industry
Germany,
France,
Brazil
and
has done and in what directions it
by

Switzerland.

moving for even greater

is

serv¬

ices."
The

Statement

Plastics

the

King Merritt Adds

of Principles of

which

Industry,

(Special to The Financial Chronicle)

is

being endorsed by additional com¬
panies each day, was prepared
by executives of industry com¬

LOS
H.

ANGELES, Calif.—Dudley

Hosera, Jr. is

Merritt

&

Co.,

now

Inc.,

with King
1151 Sooth

panies and was first made public Broadway.
March
8. Four major trade or¬

Wm. B. Hoskins Opens

ganizations participated in making
the

announcement

on

that

occa¬

(Special to The Financial Chhonicle)

Chemists'
LOS
ANGELES, Calif. —Wil¬
Association, Inc.; the Society of liam B. Hoskins is
engaging in a
the
Plastics
Industry, Inc.; the
securities business from offices at
Society of Plastics Engineers, Inc.; 458
South Spring Street.,
;
and the Plastics Coatings and Film

sion: The Manufacturing

been

have

other

Two

Association.

added

in

groups

Claude A. Wells Opens

the interval:

(Special to The Financial Chronicle)
Proprietary
Plastics Manufac¬
turers Association; and the Society
CHICAGO, 111. — Claude A.
of the Plastics Industry, Canada,
Wells is engaging in a securities
Inc.
business from offices at 135 South
'

statement

The

has

been

con¬

La Salle Street.

by industry executives to
desirable
in
view
of
the

sidered
be

phenomenal

increase

in

plastics
materials. These products, they say,
tions

and

new

uses

*

applica¬
Carr

of

of

the

Carr F. Pross
Frederick
investment

Pros,

manager

advisory

de¬

continuing challenge to partment of Shearson, Hammill 8c
manufacturers and processors to Co., passed away June 9, at.the
apply materials in a manner that aee of 54.
present

a

34

(2686)

The Commercial and Financial Chronicle...

stymied by the question, 'Shall I

amounts

invest now?'.

$14.69

part

Mutual Funds
Wiesenberger Reports
fund

plans by which investors
chase

fund

shares

monthly

basis,

300%

the

in

on

can

pur-

regular
increased

a

have

past two

and

years

likely

are

to show further rapid
growth in the years ahead."
.

'That

statement

made

was

by

Arthur Wiesenberger, senior partner of
the New York Stock Ex-

change firm of the
the

14th

edition

same

of

in

name,

"Investment

Companies," published yesterday.
The book, issued yearly by the
Wiesenberger firm, describes the
portfolio holdings, earnings, and
performance
Funds

and

data

Mutual

closed-end

53

120

invest-

ment

companies.

basic

of

information

It contains also
the

on

and many uses

opera-

^

.

.

"Just three years ago," Mr. Wie-

senberger explained, "there were
only 28 mutual fund accumulaplans in existence.

edition

of

The

"Investment

1954

Compa-

nies" lists 92 mutual funds whose
shares may be bought in this

way.

At

the

of

end

1951,

there

were

approximately 50,000 persons purchasing mutual fund shares
through accumulation plans. Today, these invest-as-you-go plans
have 200,000 investors who

vesting $6,000,000 monthly
000,000

yearly.

This

in-

are

or

$72,-

represents

about 10%

of 1953's gross mutual

fund

of

sales

$672,000,000."

;

By 1960, Mr. Wiesenberger
stated, it is not unlikely that annual mutual fund sales will

$1,500,000,000

and

that

reach

by

that

time accumulation plan
purchases
will amount to about one-third of
total sales.

Describing results of

special
survey conducted by the research
staff of Arthur Wiesenberger &
Co.. covering 60,000 accumulation
plan fund accounts in 16 mutual
funds

which

have

a

offered

such

plans for several years, Mr. Wiesenberger said:
,!

(1) "We have found that at
1953, the average new

end of

in mutual fund accumulation plans began his plan with an
investment of about $419 and that

monthly

average

thereafter

investment

$76.

was

The

of

$10 monthly;

as

have higher minimums;

reported

in-

wide

SHARES

Balanced

m(>nth\y,

even

total

Stock

equal

to

&

and

Fund

sold

net

and

assets,

of

as

shares

554

Unrealized

increased

from

Dividend
totaled.

Eaton

will

Combined

appreciation

be

the

cellaneous

lumber

and

plans.

ofvthe

tion

in

fund

accumulation

(3)

«Not onl

plans provide
ing

seasonally adjusted, have advanced
during the last three weeks,' but

pear

to

be

THE NEX ASSET value of The

mutual

electric

Roe

&

SIXTEEN

plans.

do

tke

accumulation

are

sizable and grow-,

a

Farnham

comnanies

holdings

of

Fund

now

per

and

power

investment, capital, but there are reasons for believing they are contributing an
important new factor of support

prices

in

currently engaged
phasesof the

in

one

/

,

or

and

than

25%

of

the

entire

in

special chapter
vestment Companies."
a

(4) "While existing in

of

"In-

form

one

or another for more than 20
years,

it

is

only

in

the

last

riTCrrwi«TTrrr.«c

few

years

younger people like them because

they provide

money aside for
many

to

years

incentive to

an

the future.

look

set

With

ahead.! these

higher

.income

and

and to sell when prices
is

difficult

more

fund

are

than

it

high,
looks.

ideal

goods

th£holdiSStot^>ac^^
Y^y^'W^y-/ .of Commerce,, for

to

merge their $2 million
into Coffin & Burr's

$8

New

million

reason

given

to

share-

for

the merger was the
economical operation of the
combined companies'. Under Massmore

achusetts law

—

in this

proposal—approval
of

two-thirds

of

two-step

-of the" holders

the

outstandingcapital stock is required upon the
merger question, and a majority
vote

is

then

required to

the corporation.

dissolve
-

,

-

Shareholders learned that there
was

still

spect to

some

question with reFederal income taxes, if

the merger takes place. The Federal Internal Revenue Service has

refused to give an advance
ruling
on
whether the transactions involved
in

or




the
or

merger

loss to

will

the

result

Fund

3, PA.

know," he said, "that-

sale of such

plkn involves ;;

a

y

some, problems

Y:

ginning, but
they

we

at the • be- "
do rot feel

unsurmountable.

are

•

the

shareholder's

of

Boston

cost

Fund

basis

will
of

shares

be

mi,'

/"••.

..The

.

.

t

companies im this *ieM
.stock is held by the fund

the

New

which

he

the

,

definite place

a

j in periodic investment
grams

and,

when

ically

operated
ently sold, will

y

pro¬

econom-'

and

prud-

prove

to be

exceptionally worthwhile to

fiiwYrl
sperrv

Sauare

an

material inventories that be¬

last January is quite possibly

forecast

Qf nondurable goods such

as

Electric and Weston Electric.

tex-

tiles..

New'

Y

•———*

.

—

he

-

•.

redeems

or

..

gain

or

loss

sells

the

were

also told that

at which 40%

result

res-

In

this

in

changes

are

and

ies of finished goods can hardly
be considered a favorable indicaished goods inventories sometimes

if"

^ness'activity is weU under
^.n^or.examPle» ra^ ^?a"
i6ria^inv®niories began tp decline
,

inventories, so that the decline in
'

*

'

in

director

of
the
Fund,, and
employees of Russell, Berg
& Company, William DeFord and
William
H.
Gasset,
Vice-Presi-

will declineyat

-ready,

beginning in October

Novemeber.

have

declined

Used

less

car

prices

this year than

last spring, when there was some

overproduction

of

of

the

cars,

half

of

the

because

of

and

because

not

in

curtailed

was

the

,

1

Manhattan Bond

of'any slackness
>

Fund, Inc.

Fund, Inc.

'

■

July 1 become associated with

'

./

-

....*•

Boston investment counsel firm

which

is

viser to

now

an

an

investment

ad-

Diversified Growth Stock Fund, Inc. *

investmerit company of

the type

as

ton.' It is

expected that this Leon-

ard

Group

Mutual Fund of Bos¬

will,

for1 themselves,
PROSPECTUSES

land Fund after the merger takes

place.

Cleveland

England

Boston

receives,

dividend

on

Mutual

June

10,

Fund

of

cancelled

its

reinvestment

plan.

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER.

OR

1

Chicago
Los

Meanwhile,

AVAILABLE

FROM

Hugh w. long and Company
Incorporated

Angel«

San Francisco

Westminster

at

sec¬

shortages of materials

'

Diversified Investment

pro¬

but lonly

year

in demand.

„

and

resembles that

spring of 1951, when

duction
ond

new

Fundamental Investors, Inc.

dents of the Fund, and David C.
Hoover, Clerk of the Fund, will
a

recovered.

moderately until 1955 models

re.--

expansion of inventor.

three

on

been

connection, Kenneth C.
partner, and Treasurer

Leonard,
and

of the 1953 second-

had

be that production
least

continued

the personnel of that firm,
,

decline

But production has been topping
the other hand, retail sales
slightly,' building up
are
now
declining rather rapidly,- dealers'
;, inventories,
so that the
but from a relatively higher level opinion in the industry seems: to

Russell, Berg & Company, investment adviser to the Fund; will in
the near future make changes in
the nature and scope of operation
will

season¬

of

five months before finished goods

which

registrations,

durabie goods, on

-

skares

Shareholders

1954.

car

the trend this year

and he will not realize

until

similar develop¬
goods in the sec¬

a

ally adjusted, showed a further
increase in April, reaching a level

mains inconclusive Axe states. The
TOTAL ASSET value of Selected

of'

half of

half

inventories

spect to inventories therefore

>

a

im-

caVseseveral leading hinds
of untavorable price
In

Westinghouse"^ The general outlook with

D

-;

gan

ond

• • Manufacturers'

•"

^ investors." yY

ment in finished

Boston),

as

has.

raw

2V2 years,;and

m-nlYRWHnRaHidthan those of nondurable goods. N

redeem their shares of New Eng-

treated

.thai the, insurance

y. feature

on a

sltuatl°Ps

industrial develop-

ment

recognized,
original total

If gain or loss is not

'4 viction

whatever, net, since May 31,
1952, notwithstanding the fact that

expect'cd "to "become" increasingly

clients and friends (who now hold
20% of Mutual Fund of

shareholders.

"Our continuing interest is
based
upon
a
strong xon^

;

the existence of these high inven-

or

cost of his shares of Mutual Fund

investment dealer

PHILADELPHIA

in

gain

a

the

Prospecfus from

•

.

"We

inventories
of
indeed to

ndntneo automatically, witn con- tories has obviously been

fund

England Fund.

Chief

holders

your

>,

comprehensive;

the operation, clearance and

seem

none

the process by

is

plans / American Shares as announced by
investors2 Edward P.
Rubin, President, now

for

•

Shareholders of Mutual Fund of

JFOUHDIDd19

y;

'.

accumulation

proved

Boston, at a special meeting on
23, will vote on a proposal

120 Broadway, New York 5, New York

a *

there has bee" httle change iu the

growth

sioned investors who have learned
way that trying to buy
stocks when they are low in price

nondurakie

the «eld nf automationconstitutes

capital

-the hard

spon-

have established themselves

younger investors want the chance

for

GROUPy

EauinmenF'Sl^
thqe sPtock o£

that accumulation plans have been
about 60% of
widely adopted by the great ma- fund
jority of mutual funds.
Their V., A
growing popularity is due to;
Automation
their wide appeal. For one thing,.

June

CORPORATION

r

.with ;; "The
PutnamPlan—for investing as yod
earn."
• - v

.

s

/Manufacturers'

^wrkTT»

DISTRIBUTORS

Merger with New England Fund

Etlablithed 1930

Distributors^:

ance

,

common

.

full

SERIES

RESEARCH

an-

-for

study of the idea of combining. creditor's life insur-

;j

declining

Mutual Fund of Boston Holders Vole

NATIONAL SECURITIES &

Fund

making

i

in

tion, although it is true that fin-

PROSPECTUS

set

the management of
The Putnam Fund have been

little change

frorn February to April,

probable

date

i Inc. and

-.

' This ratio showed

Shares of these companies held
hy Bullock Fund amount to more

.

FOLDER AND

Putnam

new

advanced

January.; -

y

,

inventories

the

right after Labor Day."
>
The spokesman said that I

C

,

slightly in April, at which point
** bad recovered three-sevenths of
the decline from April 1953 to

Fund

atom"c energy

program.

_

FREE INFORMATION

less—with

nouncement

;

.

A MUTUAL INVESTMENT FUND

WRITE FOR

our

hope to have our plancompleted within 60 days or

this.; respect the movement was
similar to the 1949 recovery* when
stock holdings of this fund. The the ratio leveled off for .several
markets. Investors consider accucompanies
are
Allis
Chalmers, months following the initial sharp,
mulation plans as long-term in- American'
Cyanamid,
B e ndi x recovery in August and Septem-'
vestment programs. To yield the
Aviation, Blaw-Knox,'Boeing Air- ber. /• With respect , to manufacmost satisfactory results shares plane,
C 1 i m a x
Molybdenum, hirers'* inventoried the principal
should be purchased in declining Diamond
Alkali, du Pont,< Good- difference between, the- present,
as well as rising markets.
Such year, Kennecott Copper^ PhilUps;. business recoyery and the J949 re-1
regular purchases give investors Petroleum, R a d i
o'J*Corporation/,,^yai^,^^"tb be that today there
the benefits of "dollar-cost-averStandard Oil of California, 0Byl¥'has been relatively Jess correction
aging," an increasingly popular vania Electric, United Aircraft and of high nondurable goods inveninvestment technique explained in Westinghouse.
tories.
i
s
security

shelving

sponsors'ap¬
doing.
In fact,' :

we

automobile

The ratio of manufacturers'

orders. to

;

renresented

Bullock

more

new source of

for

not

are

other

plan

with

"We

x

as

opera-0* $6,579,499.84, or>$21.63
has share> on June 10> 1953-

Basic

Exchange

common

of

ing life insurance with peri¬

Stein

;

"A lot

aren't.

plan

.

much

plans, said,
is

odic investing programs. We"
' '
'

-

(2) "Inauguration this.past win-, amounts to $8,532,823.49 equivalent production have declined, so that
of the New York Stock Exto $25.33 on each of the 336,922 the Axe-Houghton weekly busichange Monthly Investment Plan shares presently outstanding. This ness index has shown only a modalso hds increased interest in accompares with a net asset value erate increase.
>
..

mumulktion

term-insurance

of periodic invest¬

loadings,

amountecl t0

inves-

re¬

their.

ing their plans for combin¬

STEEL ^PRODUCTION and mis¬

the

on

written

going around that
'everybody' is now abandon¬

two

period

for

and

ment

over

expenses

to $48,031.

for

coverage

talk

of

had

plans

;

•

assets

Putnam

commenting

sponsors

$140,000,000, owned by approximately 27,000 shareholders.
"¥.V y y^:.^' ¥■■>

$1,718

income

$5,832

'

for

ports that other mutual fund

additional share for each

one

Day

spokesman

Fund,

&

ter

have

SECURITIES

A

Howard

Eaton & Howard Funds total

repur-

unted to $1 296

t(Jf c?n be/ln a Plan for system-.

Mutual

NATIONAL

Putnam Fund Insurance
Set for Labor

'

split
on June 30,
1954. By
vote of the Trustees, each shareholder will receive a distribution

of

chased.

to^ invest
.

Eaton

Fund

share held.

were

upper or lower limit on

atlc investment.

Howard

30, of $303,407 compared
$230,540 > on Oct. 31, 1953.
During this period 1,708 shares

some

With no
the

the smallest

OF

with

some

Possible

$31,120,816,

June 15, 1953.

on

April

have
requirements 'at all.

nonspecific

share

a

COMMONWEALTH STOCK Fund

offered

programs

little

as

in-

put into the plan

given moment."

inherent in common stock
the investments. .They have also at- C
in--tracted experienced but- disillu-

vestor

the

cept

the

amount

to

share. This compares with
total value of $24,956,903 or $12.64
a

two-for-one

vestors through these plans has
greatly increased their popularity. Some accumulation plans ac-

of ^vestment

companies.

tion

choice

small

a

whether prices are high or low at

Periodic Plan Survey

on

accumulation

only

is made at any one time, investors
need not concern themselves with

any

"Mutual

total

vestor wishes to

By ROBERT R. RICH

t..Y

the

of

Since

Thursday, June 17, 1954

Parser, Elizabeth 3, ?{ew Jersey

.

Volume 179

Number 5334... The Commercial and, Financial
Chronicle

85

<(2687)

1 Continued from

3

page

through
level

display

Television and Radio
Still
*

l

y

•

•
~

part

of

cind
in

to

demonstrate

establish these values

demands

of

that

we

this

firmly

the consumer.

practice,- from

simple

-

business.

essentials

-

not permit

boom.

non-

any level of the

manufacturing and, merchandis¬
ing scheme of things.
This

that

market

requirement

for

realism

.

in

in

exists

replace

want

them

better-oi-

a

because

newer

you

product,

nowhere

are

/

possibly some of
Lapse of time has

believe.

eerie way of

scaling down pad
periods although we never forget
those days when we were knee
deep in clover.
'
'V;

tion slid off to

apostles; of

doom

the

ori

sets

-

The

business realist

American

demands

consumer

both durable and

consumer

in

goods

always increasing.

are

In

totaled

decrease
to

Is There

Period of Relaxation

a

Ahead?

the

of

only

26%

of

21%

last

wants

insatiable

are

pacity

for

that

we

tion"

The

The

realist,

lated

in

knows
tinue

at

As

though

progress,

top

speed.
of

for

There

relaxation

good

planning,

have

you

By

a

your re¬

this period of relaxa¬

over

personal

example

you

show your customers the best

can

and

effective

more

And

be

to

the

start

added

given

the

with

radio

rest

of

set

and

sell

them

have

at

the skill

with

our

we

all

display.

can

methods

of

a

unless

only
tube

the
will

potential
lie

dormant.

St.

the

of

ahead.

Management

defeated by independ¬

Louis;

of

color

not

only

our

new

slate.

however,

is

but

In

the

of

case

the

bare

opposition

bered

will

be

majority of 11 out

Board

New

have
the

of

only

of

Central

insurgent

terest

effort

and

over.

been

Also,

been

and

as

the
en¬

has

and

is

in

by the time this
print.
This is the

time

in

many,

there

has

many years
such visible

been

As

color.

result of the

part

all

overthrow

the

ment

of stockholders.
that has

success

three

attempts

incumbent

to

manage¬

there has been considerable

speculation

increasing in¬

on

on

a

lysts

After

among railroad ana¬
to the likelihood that the

as

merchandise, at the right time, at
the.right place. .You are in a po¬

year?

that, the curve of color growth trend may spread next year to
should turn sharply upward. The other railroads whose stocks sell
acceptance of color and color sets, at low levels and where post-war

ures

already has convinced

sition

in

moving goods.
point

to

You

push

to

*

can

the

make it

right

coordinate

a

brand

current

de¬

many

the

of

you

potentials

did not tap last

we

Actually, as published fig¬
show, only about one family

four

acquired

a

radio

new

in
■

of

mands

with

the

ultimate

available

goods.

stance, this is the
able

radios.

have

been

consumer

For

for port¬

season

Although

sold

for

in¬

.millions

use

on

vaca¬

tions, on motor trips and at the
beach, the field has scarcely been
touched, as you well know.
And

only

comes

fall.

—let's

short

a

not

time

ahead

The penetration of TV
call

substantial

it

but

saturation—is

with

the

gridiron

1953.

with

ing TV
of

new

public
more

the

return

ship
to

and

programs

the

debuts

cannot

help but be in a
receptive mood for TV sales.

we

could

include

the

four

extra

family

been

effort

great

sales

in

three,

for

radios

equivalent

million

could

units.

to

A

lit¬

spent

difference

here

and

have

made

the

well

between

gish market and
ful

boosted

demand

there

promo¬

hitting salesman¬

one

would "have

tle

better

have

increased

about

a

slug¬

most product¬

a

one.

ords
far

have not

been

rec¬

mentioned

so

in this

talk, they merit atten¬
tion.. The growing field of
highfidelity /. instruments
and
their

Household

More and
dent

that

TV; receiver
soon

be

it

more

the

become

evi¬

day of the second
is with us.-It will

"must" that in a mixed

a

household of adults and children,
one

will

screen

old

man's

not

attention

utes,

but

will

keep

be

enough.
game will hold the

The football

of

most

for

the

150

same

min¬

youngsters

demanding

on

Westerns at the

time.

a public that
becoming good-music conscious
high hopes for great future
development.
Advances
in
the

their
With-

hold

mechanics

of

recording have

re¬

sulted in

disks that produce
high
quality reproduction for a greater
number
of
playings.
It is not
easy to make predictions that will
stand

up

for six months but

ord manufacturers

1954

as a

year

high

for

disk

RCA is well

that

are

rec¬

looking

on

may set a new

sales.
aware

„

Western,

According
to
our
estimates, the industry
should be able to sell about 50,000
sets in 1954, and several hundred
thousand
we

in

1955.

During

1956,

about

1,750,000; in
about
3,000,000
and
in
5,000,000.
X

1957,
1958,

er's

Figures
duce

least
the

the
.

can

be twisted

answers

something

answers.

ard' could

to

desired

pro¬
or

at

approximating

A mathematical wiz¬

give

you

statistics




to

Digest,"

a

small

library

of

top

recordings.
We have been
working ori this campaign for
many

months and believe that the

final plan
from

the

w^U- maintain its drive
pressing plant straight

the

Denver

Central.
basis

Rio

Mr.

of

ciates

&

Rio

Grande

President of New York

as

Perlman,

what

have

he

his

and

accomplished

Grande

since

the

on

that

asso¬

on

the-

company

bankruptcy, is gen¬
erally acknowledged to be one of
the top railroad men in the coun¬
try.
New York Central is a dif¬

possible in 35 cities coast to-coast

ferent proposition, however, with¬
out the dynamic territorial
growth

and

characteristics that have been such

by

color
the

stations

TV

reception

year's

should

end,

be

125

is
TV

boon

a

equipped

-

for

to

Rio

Halsey,

Grande, and with

crued

at

despite
grams
a

few

assuming

the

fact

markets.

color pro¬

But

when

NBC

shows,

"spectaculars,"
color

of

appeal

as

will

"shot-in-the-

that

all

of

conceived

their

TV

which

in

series

inaugurates its

90-minute /

give

that

hours

October

arm"

sold

were

being broadcast only
a
week in only a

were

'few

have

us

been

waiting for.

These shows, ranging
the vast panorama of show

business

strations

and

embracing the most
of producers and di¬

and

sales

of

the

new

color models. Truly, 1954 and 1955
should go down in history as the
years

vision

that
on

Taking

a

business

launched

color

tele¬

national scale.

all

of

these

signs

his

role

new

In

Presi¬

as

dent and chief executive officer of

New

York

Central,

Mr.

Perlman

expressed considerable confidence
in

the

while
ful

future

of

the

admitting that

program

would

property,
success¬

any

take

an

ex¬

tended period to, complete.
There
has
been
considerable

improvement in Central's operat¬
ing status in the past year or so
even though no really substantial
earning

has

cower

been

oped.

There

are.

many

basic

difficulties

in

the operation.

the

particularly

business—there
in the
a

revenues

inherent

One of these is

large
are

as

an

devel¬

stated above,

passenger

few

railroads

proportion of gross from

ger

of

as

country that derive

traditionally
and

conducted.

Central.

so

large

passen¬

This is

unprofitable phase

railroading, and is compounded

Stuart

broke
a

even

year

ear¬

•

&

Co.

Inc.

and

offered

[interest,

bid

a
;

Of

to

yield

3.14%.

Net

101.54991%.

proceeds

June 15

on

from

on

f";.'

-

the

sale

of

the

bonds and the approximately
$5,500,000 to be received from the
sale
to

additional

of

General

will

be

common

Public

stock

Utilities

Co.

applied to the company's

construction

program

and

to

the

(

repayment of bank loans incurred
in connection with the construc¬
tion

program.

The

new bonds will be subject
redemption at regular redemp¬
tion prices ranging from 105/33%
to par, and at special
redemption
prices receding from 102.13% to

to

par,

plus accrued interest in each

case.--

:

v

;■

Jersey Central Power & Light
Co. provides electric service with¬
in

area

an

Jersey.

-

sets

about

competitive sale

American homes.

5,000

the

The group won award of the issue

the total

first

April

yesterday
(June
16)
$6,000,000 of Jersey
Central Power & Light Co. first
mortgage bonds, 3V4% series due
June 1, 1984, at 102V8% and ac¬

type

Our

just

associates

rhany specific operating problems
inherent, in the territory and the

of

the

For

year.

through

share earned

a

color broadcasts. This service will
then be within reach of 75% of

in
your help and ours,, through per¬
good music.- Within a short celebrated
sistant and productful merchan-. time we will launch a carefully rectors and stars, will bring pres¬
ciising and promotion, wp can see planned and vigorous campaign ent black-and-white TV set own¬
that peace is maintained in the designed to promote our "Listen¬ ers into retail stores for demon¬

family circle.

of

believe sales of color sets will- emerged from

reach

across

.

of this trend

disappointing.
The
new
Board of Directors
have elected Mr. Alfred
Perlman,

believes the demand for color sets
will exceed the supply.

is
i

been

formerly Executive Vice-President

,

.

Although phonographs and

earnings and dividends have

dustry can produce.
f
During this year and next, RCA

Today,

ready acceptance by
Second TV Receivers in Each

that the

American television audience will
absorb as many units as the in¬

Phonographs and Records

of outstand¬

video'features, the buying

through

tion and harder

attracting millions of v.ewers dur¬
ing the last quarter of the year,
and

If

us

last

months

Halsey, Stuart Group
Offer Jersey Central
Power & Light Bonds

important
changes in the near
they have not already

attended

earnings will fall con¬
short of the $5.27
a

earned

presumably

other

tion

regular
as

1954

be,
but

a new President

be

the

management
may
be little question

can

($1.59

that

re¬

elimin¬
may

company

first

en¬

entirely

lier) but this interim 1954 show¬
ing was made possible only by a
sharp increase in non-operating
income which can hardly be continued throughout the year.

announced

column

be

not

polled

group

elected

will

future, if

remem¬

a

new

siderably

management

of transition from black and

year

white to color with

realize

as

terminal

disproportion¬
are weaknesses

21-

a

does

voting

not

can

there

Directors.

York

cumulative

taken

the year that color tele¬

as

where

are

These

be
In the
meantime, and regardless of what
the long term developments un¬

New

elected

main

modified, by management.

evidence of unrest and dissatisfac¬

1954

year

that

the

four

ceiver position.

The

ately high.

share

man

and

television

tonnage

yard costs

der

receivers

maintain,

present

freight

that

a

tube, RCA

television

between

the company han¬

large amount of short haul

a

ing

tele¬

stable

distances

traffic centers,

dles

Minneapolis
York, New

New

Also, because of the nature of
territory and the relatively

ated, although their effect

there

more

./

the

short

Haven the fight was close and as
the company has cumulative vot¬

new

color

case of Central
by the large
ratio of commuter traffic.
>

and

a

economical

hance

How

distributors

19-

affording
approximately

convinced that with this

are

will

the

materially

in the

now

has

lost

buyer

1954

full

util¬

receiver.

Victor

is

and we will
from the ex¬

ear,

perience.

former directors carried on as the
opposition had not presented
a

two

new

new

circuitry

more

It won't

hearing

profit

the

the former President was contin¬
ued in office and a number
of the

stem

use

of

brighter, larger,

there, but
merchandising drive

our

major
fights has

.

will

Its

The

reaches

.the

the

force

find the

our

management change complete. In
the Minneapolis & St. Louis case

tele¬

tube

service; 1955 will be known

market

clinch

majority of the votes cast an
tirely new Board of Directors

vision

and all

means.

American

an

Haven & Hartford and New York
Central.
Only in the case of New
York
Central,

oppor¬

vision made its start

market

to

picture quality with increased
stability. The tube does not re¬
quire any change whatsoever in

radio

come,

were

re¬

producing

new

major feature of this

can

a

out

&
our

There will be good
money
sets for a long time to

cause.

in

pictures

We

the

command

of

proxy,

slates

and

hardly be said that radios will be
a
"drug on the market." But to
accomplish this we must get out
we

then

third

come

gun. RCA recently
shorter, high effi¬
ciency, three-gun assembly which
produces
outstanding
brilliance

will

it

year,

to

The

ago.

developed

promotion for

this

attention

history and in each
instance the insurgent group has

shorter than the tube

even

tube is

coupled
that

the

prospects for

gone down in

19-inch

color

tri-color

planned

The

sus¬

and

railroad
/

205 square inches in area.

firmer

with,

-

thereby

accomplish

punch

are

advance

RCA's

color

percentage

this

-

izes the full face plate of the
inch
bulb,

summer months

able to

the

engineers to im¬

tubes

creating

to

months

that

be

be easy but radio is far from

distributors

tailers

we! were

with

golden opportunity to lift
tion.

through the

than

support

con¬

higher

a

1953.

will

by available effective

was

New York Central
The

new and very

larger and brighter.

we

a

and

and

will be

Admit¬

belief

our

level

He

must

to

market

at

dis¬

the rise.

on

tained

not

keep the graph of progress

always

support

radio

accumu¬

periods

call

to

the

hand,- in

hard work and hard
selling if we
are

gives

statistics.

America

make

be

which

feels

other

many
that are

that

not' always
must

the

on

cold

to

ca¬

penetration."

have

wants

closed

pessimist

"market

we

our

production

It

final

by

shadow-mask

color

vision.

our- but the seasonal fall-off this
year

have "over produc¬

now

or

knows

and

absorbing

unlimited.

that

accepted

employ the

men

results

tedly, the 1953 production for this
was higher to
start with,

to

are

ent-stockholders

prove

period

j,The optimist believes

the

-.The continued efforts of

compared

year.

well

RCA

search

pro¬

This works out to

that

tube.

March,
1954, | production
930,000 units; in April,

740,000 units.

basis

The RCA Victor color television
to
be
introduced • this

latest

moment.

a

brought

are

of those who

receivers

be

in mind for

sales

Television

:"yV/<:

the

ure

this

embodying
the
RCA
picture
tube.' These

were

fall will

Keep this fig¬

economy.
knows that

sell

high

of

product

trade.

tunities

our

num¬

have

would

conclusion

one

words of a talk are those most
likely to be longest remembered.
•RCA recently completed its in¬
itial production run of color TV

with greater appeal or more con¬ claimed
f-that the end was near;
That is typical of the- This decrease
incidentally was ap¬
American way of life and one of proximately 26%.
to

We

effectiveness

there

only

have purposely left the sub¬
Color Television to the

receivers

1,150,000 units the

annual

the

be

philosopher
We—manufacturers, dis¬ who said: "The hearing ear is al¬
tributors and dealers, all of us—
ways found close to the speaking
must cooperate as a team
to in¬ tongue."
Our story, if it is told
sure
that the goods we have to
properly to the buying public, will

usual

included.

in

Tri-Color

venience.

keystones

in

together

to

seem

to draw.

ject, of
last

to¬

demands
As
that
an
a
businessman
exampld of statistical
maintain his faith in
himself, hisv maneuvers, "let s look at the rec¬
fellow
ord"
for
1953
and
citizens, his business and
1954, taking
his country.
It demands that a radio first and then
television.
businessman realize that in Amer¬ Production of radio sets in
March,
ica you don't wait for
totaled
things to 1953,
1,550,000
units.
wear out before
Then when in
you replace them.
April this produc¬
You

and

provided

Color
I

know

room

condition

be

a

bonanza

a

We here in this

neither

you
an

be

portents

and

distributor

for

the

No

Sales

particular campaign.

i

•

either

are

or

of

inefficiency and

productiveness at

minute

very

good day.. But conditions
conditions do- near as bad as

Today's

will

faith

that television and radio at

It. glutted

purchaser.

missed.

variety of
newspaper and publicity material

.

show

beginning to end, the basic plain

and

J

will

ber,' and

4

salesmen

the mind

;

the

be

aids

dealer

Going Great

r

to

will

square,

of

approximately 1,528

miles,1

or

about

20.3%

of

of the State of New

area

Territory served at retail

includes

all
or
portions of 131
municipalities in the north central
and

east" central

Jersey with
530,000.

parts

of

New

population of about

a

The

cortipany also sup¬
plies electric service at wholesale
to
the
boroughs of Lavallette,
Seaside Heights, Madison and
Butler, which have a combined
population of approximately 16,000
and to a small Rural Electrifica¬
tion

Administration

Cooperative.

For the 12 months ended March

31,

1954,

the

company

had total

operating revenues"of $27,982,767
and net income of $4,090,885. For
the year 1953, operating
amounted

income

to

was

Associated
in the

$27,320,005

revenues'"
and* net

$3,754,460.
with

offering

are:

Halsey, Stuart
The Milwau-',

kee Co.; Thomas & Co.; Mullaney,
Wells & Co.

36

The Commercial and Financial Chronicle...

(2688}

Continued

from

the

Challenge oi Atomic Eneigy
economic

many

reactor

carried
its

studies

out

has

reactors

with

in

tems

the

These

conventional

is

products

elements,

tremely valuable

in

on

ized.

Some of

economic

far

so

areas

to

as

studies

privately that
of our increased

stems

In

economic

from

technical

attempting

against overemphasis

ad¬

guard

to

economic

on

studies, Dr. Henry Smyth recently
remarked, "I have occasionally
been so blunt as to suggest that if
the price of
power from
coalburing plants was 1 mill per kilo¬
watt hour, our enthusiastic

produce
sis

i

nuclear

of

cates

advo¬
would

power

fully documented analy-

a

showing

that

#<yrices. could

nuclear

reasonably

nuclear

power

ex¬

developments,

Under this pro¬

emphasis

major

gram,

has

program

is

be

to

make

economic

if

necessary

the

panies

of

studies

us
are

program

is

chemical

com¬

also

familiar

with

are

that

processes

or

all

most

sense,

plants

that

sure

are

to

ex¬

tremely attractive from the stand¬
point of economic analysis but are

lacking in

one

requirement

vital

—namely, they don't work. This
brings us to the third point I wish
to

that

discuss;

position of
relation

our

to

the

is,

it

but

is

present

technology and its
nuclear

economical

that

and

is

to

operated

constructed

be

the.

by

Duquesne

Light Company of Pittsburgh, Pa.,
breeder

intermediate-sized

an

actor,

method of heat extrac¬

a

larger version of the liquid

homogeneous reactor and a
liquid-metal-cooled reactor.
If the five-year power reactor
development program is success¬
ful in every phase, we should by
have

1960

seen

demonstration

a

of the performance of each of
five
This

does

that

necessarily

mean

1960 all of,these reactors

by
be

will

not

the

economically

producing

competitive
Rather it

electric power.
by 1960 ,we

should have much better informa¬
tion

the

on

for

"Technological Breakthrough" * *

further

which

of

basis

to

promising reactors

development..

,.

..

\.p

The

that

fact

varieties

of

zir¬

found to be due to
impurities. As soon

was

the hafnium
the

as

Oak

Ridge

scientists

de¬

termined that pure zirconium was

as

a

valuable

structural

material, a
large

have probably heard

technical achievements in

actor field

the

re¬

the

in

past few years.
It may be of interest to summar¬
ize

of

some

these

It is

I

ing

generation of power by three dif¬

look

to

power

For

and

more

chemical plants.

The

events.

electric

nomical

this

■:& V-

com¬

like

/

Summary

To summarize and
comments

complete my
situa¬

present

for

motivation

emphasize

like to
points:

would

I

tion,

the

on

the following

A

the

;'»•

cope.

Other types

of fuels have their

advantages

and ■' disadvantages;
choosing the right combination is
important.. •« 5*« ♦,
,t»«»
»*

different moderators

Many

are

to

choose

from,

ones

that have

been most

available

foo.
Graphite, water and heavy, vyater
the

are

frequently used. Heavy water is
probably the best moderator of
all, but it requires an insotope

separation.
Problems
of avail¬
ability and cost are strong factors
affecting its use. The moderator,

successful

fundamental

technological

information

the

form

to

scale

are

for

basis

of power
aimed at

of

them

chemical

are

duction

from nuclear fuels

power

may

of

source

has

energy

under

—

certain

at

the

finding that titanium
has corrosion resistant properties
that
as

make

it

reactor

a

attractive

for

use

material.

structural

The problems in structural ma¬

terials

are
typified by our ex¬
periences with zirconium and

be

titanium.

(3) The need for nuclear fuels
a

cover

been

First,

that

terials.

evaluated, and it seems most
likely that if large quantities of
energy cannot be provided by nu-*

clear power industry
foreseen

now

available

that

the

on

that

can

they

Now,

had

we

were

it

is

to

dis¬

good

ma¬

necessary

to

obtain adequate

coolant

absorption

erator.

that

ranging
to;liquid
affecting
heU-

are

reactor

Laboratory

we

have

the

might

point

removal

always
heat

if

in

small

very

rate

carried

which

in

is

it

which

at

of

out

could

could

reactor

keep

pro¬

power

it from over¬

heating.

V.'

the

high

desired

are

the

produced.

amazing quantities of

one

At

a

every

reactor power has

the

be

can

duce

on

been

region
A

out

presents

operated to date the lim¬

iting factor

temperatures, that

for

corrosion

by

quently

severe

a

reactors,

power

the

coolant

fre¬

is

Meth¬

problem.

ods of preventing, or at least min¬

imizing,

corrosion

under

severe

conditions must be found.

Chemical Processing
If

one

lems

tional

by

I

characteristics,

great challenge because

can

for reactors, I want
emphasize one very important
point.
At the Oak Ridge
Na¬

Here,

heat

to

such

is

participation

of

choice

construction

be

basis of the

estimates

extensive

factors

patibility with the fuel and mod¬

be

reactor

corrosion

ment is

clearly indicated.
as

Major

heat transfer properties and com¬

electrical

economical

the

possibilities

fuel, will

must

least—making ma¬
terials that ordinarily corrode
in easily corrosion resistant.
Another fairly recent develop¬

program

of

metals.

the

unlimited,

other gases

or

separated

but

irradiated

conditions

is now being
initiated, and by 1960 the most
promising approach to the pro¬
opment

product,

air

tron

inhibit

An advanced reactor devel¬

(2)

quantities

of. small

presence

from

plishing specific objectives within
five years.
The major problems
are now fairly clearly recognized.
Most

discovery that

from

nature

reactor
accom¬

nature.

the

coolants,

almost

are

technecium, which Js not found in

large-*

a

been

contribu¬

of the radioactive fission

needed

program

development

the

For

lacking.

was

recent ORNL

more

tion has

available now the
physical
data
and

(1) There

best

:

it is in the
and chemical

reason,

.

are
more

problem with which the
operator

a

whether it is heavy water or
something else, must be compat¬
separation
from
hafnium
ible with the fuel under reactor
was
developed in a few months:
operating conditions; and thjs in¬
—a
problem which had baffled
troduces a new set of problems.
chemists for decades
when
the

method

supplies of these
especially appropriate that
formerly exotic materials and to
speak of the challenge and the
reference to the term, "techno¬ opportunities of nuclear power to clear
reduce
their
costs.
Techniques
fuels in 1975 at costs com¬
logical breakthrough," as applied a group
representing Chemical petitive with today's costs, the for fabrication and welding of
to nuclear power reactors.
Industry because our conceptions real cost of energy in the United zirconium and titanium pose new
Much of our recent confidence of
central
station power
problems.
plants States may start increasing.
in nuclear power stems from solid
In connection with materials of
using nuclear fuel to produce eco¬
(4) The magnitude of the nu¬
All of you

quid is

scale

that

means

reactors.

property

applications of radioisotope
sources in industry.

new

for

commercial

conium did not have this valuable

energy

earlier.

mentioned

reactors

chemistry of solutions at elevated
temperatures is little known. Ra¬
diation decomposition of the li¬

must

all

the

and processing of ra¬
well as for possible

production
dioisotopes

re¬

boiling

using

reactor

a
as

a

select the most

power.

sources.

under

and

reactor

easier

reactor designer and

sary

Surveys
already
auspicies of the
AEC have suggested several
rather
interesting
opportunities
for industrial participation in the
ergy

construction of five
reactors of varying size and cost.
These are the pressurized water
opment

fuel

am

realize that

can

the

overcome

mentioned

up

to

*

•

prob¬

now

and

get his reactor designed, con¬

and into operation, then
he must face the p r o b 1 e rfi s of

structed

processing
to rdmdve
It has chemical
the fission products from his nuoperating for about 12 years.
experimental effort of the atomic
energy pro¬ not ultimately
carry
the entire It has practically no structural clear fuel and, if he has a breeder
breeder reactor was the first to
or
converter reactor, to recover
metal in it, being made up mostly
gram
is concentrated.
To illus¬ load.
demonstrate the substantial gen¬
trate:
<5) Important steos have al¬ of concrete and graphite. So we the new fuel he has manufac¬
among
the hearly 14,000
eration
of
electric
power.
This scientists and
engineers directly ready been taken both by in-1 have no experience to tell us how tured. Because of radiation haz¬
was followed
by a similar dememployed by the Atomic Energy dustry and by the AEC to in¬ long structural materials will last ards he must perform all process¬
onstration in the aqueous homo¬ Commission and its
contractors, crease industrial participation; in an operating reactor. For ing operations by remote control
geneous reactor and most recently
there
are
approximately
2,500 and amendment of the Atomic power reactors in particular, the and must even be prepared to
power
generation
was
demon¬ chemists and
1,700 chemical en¬ Energy Act to permit still greater integrity of structural materials maintain his operating plant
strated by the Submarine Thermal
gineers—30% of the scientific ef¬ industrial participations is under —their ability to stand up under equipment be remote control. He
Reactor.• V-: /
must avoid getting enough fuel
fort
devoted
to
severe conditions for long periods
chemistry and consideration.
The principle of breeding has
I should like to turn our at¬ with little or no maintenance— in one place under the right con-j
chemical technology. This is more
been demonstrated in the Experi-,
tention
than twice the scientific effort in
now
to
some
problems is* important.. Perhaps structural ditions to set up a nuclear chaii^
menjtal , Breeder Reactor which any-other single field.
that face us.
;r'-'i materials will lose their-desirable reaction in his chemical process?
converts non-fissionable
U238 to
they may even ing plant. He must remove the
Sufficient information is "now characteristics
fissionable plutonium at a
rate
Radioisotopes
1
undesirable
products
of fission
available for the conceptual de¬ crumble—after long exposure to
faster than its U235 fuel is con¬
and corrosion without losing any
As important and interesting as
sign of many types of reactors reactor operating conditions.
sumed. This is one type of breed¬
the nuclear power field is, it is
It of the fuel.
that may
be of interest.
It is Some materials certainly do.
ing that is possible. Another tyoe, not the
only challenge of atomic increasingly evident that a sub¬ is a problem.
For q liquid-fueled reactor, the
the conversion of non-fissionable
energy.
The Oak Ridge National stantial burden of detailed de¬
ideal chemical proce.ss would
Ihorium
to
fissionable
U233, is Laboratory, as the Atomic
Fuels, Moderators and Coolants
Energy sign, construction and operation
yield a "cleaned up" fuel in the
now
under
active
investigation, Commission's center for radioiso¬
It
is
in1 the
choice
of
fuel, same chemical form, in the same
must rest on the shoulders of the

ferent

types of reactors has been

demonstrated.

„

at¬

more

made

these

placed upon the advanced devel¬

water

be

.

much

energy

formulated.

been

problems. Fluid
to handle; they
can beprocessed continuously
while the reactor is in operation.
But
they
have
problems,
too.
Corrosion is a bad one. Also, the

reactors

coupled with others which I will
mention later, a five-year power

mill range."
I.

fission

the

be

to

reactor development

pected to get down to the 1 to 1.5

•

that

of

Out

tion,

While

of

The dem-

areas.

tractive.

gone

even

state

rather than

vances.

at¬

real¬

be

the enthusiasts for

the major source

confidence

radiation source.

a

one

.,

substan¬

can

analysis have

as

formed
with such
small yields
As an example of the
may
be that other methods must be used
devel¬
inherently safe for radioisotope production pur¬ opment of new materials, I should
like to mention the development
rather than inherently dangerous
poses.
':,Jv
makes, it (feasifc>le to locate re¬
To me,y,,the .majpr..challenge, of Qf zirconium ..technology.., From
theoretical considerations, zircon¬
actor installations hear'raw' ma¬ the
radioisotopes field of atomic
terials, manpower or marketing energy lies in discovering new ium should have the low neutron
centers, which, in turn, makes applications for these unique en¬ absorption characteristics neces¬

onstration

constructed

.exr

focusing

reductions

cost

uses

,

where

tial

important

damage

are

strength at elevated tem¬
peratures,
corrosion
resistance
and as much immunity as possible
to the damaging effects of intense
high

for

promising

Thulium

sys¬

have. been

tention

is

certain

not

ation

fuels

radiation.

that

radiation

be

future.

near

studies

.

emitting

population centers or

near

upon
materials
of con¬
struction become more severe.

attracted some at¬ Desirable properties for materials
the property of of construction include low neu¬
tron
absorption
characteristics,
very
pure, soft gamma

which should

other

power from
nuclear
will probably
be com¬

petitive

be

to

ad¬

requirements

has

It

located

and

that

reactors

time

one

the

recently

tention.

installations

independent
industrial study groups. All groups
agree

at

considered

were

of

reactors

our

design,

placed

in demand.
An interesting
radioisotope,
thulium
170,

sensiti ve and inherently dangerous

Commission,

the

by

contractors,

because

important

on

systems which have been

vanced

alsor increas¬

are

new

ing

The

fission

nuclear

in

formance

ambng the by-products of

found

5

page

Thursday, June 17, 1954

The

fields

of

chemistry

technology that greatest scientific

industry will surely be

oldest reactor in the world.

if

been

indeed

private

required,
industry does

■

-

-

—

,

■

with

good,

The

prospects

establishment

of

bility of breeding is
technological

for

success.

the

feasi¬

important

an

advance .in

that

vastly increases our potential
ply of nuclear fuels.

it

sup¬

tope

production

does

over

business
alone.

year

And

being

are

the

with

in

distribution,
dollars

of

have

we

the surface. Plans

made

to

construct

ciency
tions

and

to

simplicity

and

significant

of

eauipment.

especially
toward

the

nomical

electric

clear

"breed"
the

This

power

because

new

fuel

in

ooera-

is

an

advance

nroduction

fuels,

effi¬

economy,

of

.nu¬

one

can

if
his

reactor,

rpajor item of cost associated

with

new

fuel

is

the,

cost

of

a

chemical

r»lant

that will separate from irradiated
fuels quantities or radio¬

fission

active

and

would

products

that

will

New

In

the

dwell

field

development,
portant
tions

to

on

cut

that

for

large

and

them
the

radioisotopes
I

exceot

increasing

auantities

of

will
to

of

it

find

to

the

engineers.

time

to

out¬

power

now

reactor

seems

economical

following

im¬
solu¬

our

present knowledge

the

not;

with

lqrge deposits of rich

ium

and

point

demand
radioiso¬

thorium

is

not

ores,

blessed

we

uran¬

must

ourselves of adequate raw
material supplies by developing

assure

topes for radiation

sources in low-cost
methods of
recovering
teletherapy units and in indus¬ uranium and thorium from lowradiography is a major fac¬ grade ores in large quantities.
Recerit reactor experimients con¬ tor in our need for the fission
There are numerous types of ores,
tributing to our greatly increased product chemical separations each
presenting a different set
confidence in the safety of nu¬ plant.
cr processing problems.
clear reactors., are
particularly ,-,i0$her radioisotopes,.that.are pot
As we move toward; higher) per-

cherhical
and

processing
purify it.
<

to




separate

trial

t

>

H

e.i

it

tj S Ji.l »'»

C-UuJ

k

J

n-t

Isi'-'j

VtLVJCl

«*7

.1:1

-v

:ew

nivi,

.srl

vnrrr

cision

that
or

is

made

eliminate

here

prob¬
other aspect

every

of the

business

reactor

materials

to

fuel

waste

one

can

many

lems affecting

For

the

that

coolant

and

degree of flexibility in
technology exists. The de¬

from

disposal.
have

can

raw

ic'j

roku.II
tb hhi.W

thetic mixture of these with each

other

or

with

thorium.

He

solution and

tration

can

at the

required

as

same

for

concenr

rechargr

For reactors

ing into the reactor.

using solid fuels, the most desir*
able
least
and

would avoid, or at
simplify, dissolving the fuel
yield a produpt in

process

would

proper

.

natural

uranium, enriched uranium U233,
Plutonium or perhaps some syn¬

are

States

greatest

problems:

Raw Materials

United

moderator

reactor

create

impor¬

are

Since to
far

uses

reported,

this

become

equivalent to pound quantities of

well

chemical

like at

increasingly
tant with elapsing time.

radium.

eco¬

from

future

I

in

reactor

respect

near

chemists

radioisotopes line the types of problems which
that

feel

we

only scratched

Chemical processing methods
have been greatly imoroved,

and

million

a

a

V"

new

In

form for reprocessing into

reactor fuel.

any

case,

to

achieve

eco¬

nomically competitive power

costs, it is necessary that chemical

processing costs

be

kept low.

have

metal,
alloy, oxide,
salt,
solution or slurry, to name- &qme
of the

possibilities.

Radioactive Waste

Disposal

Safe and economical disposal

of
National radioactive wastes is a problem of
Laboratory, we are emphasizing increasing importance as reactor
the
development of fluid fuel technology advances toward more
technology that seems to us to widespread applications. The han¬
have sorre very attractive advan¬ dling, storage and disposal of sblid,
tages. If eliminates the expensive liquid and gaseous wastes from
steps of metallurgical preparation reactor, and chemical processing
of fuel elements. It reduces radi- operations are problems affecting
At

ri'

i

the

jiii

Oak

Ridge

cm

\

-

Volume 179

Number 5334...The Commercial and Financial Ckronicle

(2689)

public^ health .and
be correctly

must

T To

illustrate

various t aspects,

safety.*- They

teamwork

solved.

the

that

progress

,

such

was

that

Dr.

Conant, a
well-informed .and
far-sighted
scientist, expressed grave doubts
that

economical

would

nuclear

power

be possible because

ever

of

cooperative

.

the

industry.:>)

has been maderdn 1948 the situa¬
tion

of

between

•>.r

AEC

7..V f7

1

short, there exists

In

and

frame¬

a

work within which industrial par¬

ticipation

the

in

atomic

energy

is

possible and is en¬
do not say that the
provisions for ' industrial

program

couraged.
present

an

longer

no

to

seems

be

insurmountable problem.

dioisotopes as by-products of re¬
operation. It may be that
the1 success with which the prob¬
lems
of
production, ; separation
and utilization of the fission prod¬
actor':

other

radioisotopes are
strongly influence the
electric- power or
the

solved will
of

it

be

can

can

that

will

than that,

more

well

a

any

choosing. ' But
be made by

own

start

industry; and

any

costs

its
a

follow

to

:

One hiay consider nearly all ra¬

and

of

course

certainly

By-Product Utilization

ucts

freedom

complete

informed
in

result

start

significant

The

exploitation,
of problems.
perhaps,
to

all the types
But they will serve,

that

earlier

of atomic

saying

my

substantial, burden

a

this stage rests upon the shoulders
the chemists and chemical en¬

of

gineers—and therefore ultimately
on chemical industry.
Solutions to the

problems I have
mentioned are known now, as is
amply demonstrated by the suc¬
of

cess'

the

Atomic

Com¬
operations.

Energy

mission's

production

But these

are

not

necessarily the
solutions; they are only the
best that could be provided under
best

the Circumstances.

'

being sought out and

are

developed.

But

who

we

work¬

are

ing within the Commission's vast

have

organization

certainly

monopoly

ingenuity, talent

on

recognized

are

than

expert

be.

can

we

be

to

tional

for its remote bases where

power

fuel

and

technical

and

personnel working

research alone than the Atomic

on

Energy Commission has.within its
entire organization, for alj types

As

workv.f'.

recognize

gets
the

on

that in¬

now

required to assure adequate prog¬

Army

Army

provide

mining

The

the

Atomic

has

AEC

estab¬

Office of Industrial De¬

I

point

serve

as

contact

a

AEC and in¬

the

between

assess

their

own

in

the

cost,

Oak

termine

the extent' to

gy

Commission.

of

the

atomic

the

specifica¬

in

Participate
ing

it

and

experience

has

industry

with

submit,

to

lump

plans

are

broaden

the

the

use

of

for

tests

to

perform.

nounced

tunities

for

sum

The
case

the

of

for

bids

con¬

pattern of progress in this

development

and

installations.
for

The

specific

a

for

need

a

re¬

purpose

collaborated

design.

was

wish

recently an¬
Reactor

will be made available to

industry

their

for

own

Atomic

The

use.

called

the Commission

of
is

limited

consulting,

a

to

capacity

when

but

The

Duquesne

follows

plan
These

tial

are

similar: pattern.

a

significant and substan¬
toward

steps

tation of atomic
A

reactor

power

greater exploi¬

energy.

ic Energy Commission

'

them with

ernment-published information on
atomic energy so that
well

informed

on

they

the

and thus serve industry

and

Numerous

advisory

have been established

be

program

in

valuable

competent

can

a more

way.

committees
to explore




was

1952

staff

for

develop the

below

chances for

economical

production

goal that

can

be attained.

my

opinion it must be American in¬

dustry

that ultimately

challenges
and

I

of

attaining

exploiting

do

not

see

meets

the
how

the

the

the

can

meet the estimated energy re¬

quirements from nuclear fuels in
the year

2000,

or even

in 1975, to

last

normal

power

year—in

in

1953 Twere

37%

The

is

us

tween oil,

cement,

our

power accounted for

peaceful world.

a

iron and steel, aircraft,
tires,
chemicals,
elec¬
automobiles
and
food

tronics,
products/ During 1953 the largest
single
industrial
consumer
of

na¬

ANGELES,

ties

is

business

West
firm

Calif.—H.

engaging
from

Seventh

in

R.

and

securi¬

a

offices

also

at

210

before

the

"The
we

J. P. Clay
ARLINGTON,

Clay

securities

a

P.

busi¬

from offices

ness

at

3709

New

£

in

tify their

•.

75,000
more

the

Ex¬

of Gilbert Howell

five

at

an

year,

and

Calif.—
Shelley Chastain is with Pflueger
& Baerwald, Mills Building, mem¬

past

Chastain

<-with

was

fornia

Mr.

Francisco

National

the

II.

War

$418

have

the

lion

CHICAGO, 111. — Donald E.
Levinson has rejoined the staff of
Hornblower & Weeks, 134 South

their

He

has

Thomson &

Ft.

the

has

added

been

to

the

$17

million

change

'

of

McCarley & Company, Inc., Jack¬
son
Building.

Republic

(Special to The Financial Chronicle)

25

has

Central

Huston
Waddell

become

Republic

associated

Company.

with

Mr.

for many years was with
&

Reed, Inc.

;

;

The

company's request for in¬
creased rates is expected to be de¬
cided by the California Commis¬
sion with

in
a

few weeks.

a

Quinton

President

estimated

full

that

receive the

to

were

rate

it

and

in

were

"if

we

increase

effect

have assumed to be

the

end

of

1954

outstanding at

would

fee

mate
on

is

understood

water

average

to

be

power

tions, normal growth, etc.
12 months

ings

were

largely

in

$33

based

condi¬
For the

ended March 31, earn¬

only $2.42
adverse

to

share, due

a

hydro

condi¬

currently

selling

tions.

The
around

stock
43

to

is

yield 4.65%.

.

Two With California Fund
(Special

LOS

ald"' V.

to The

Financial

Chronicle)

ANGSLES, Calif.
Dunbar

Schreiner

have

and

—

Ron¬

Jacqujeline

become

affiliated

with California Fund Management

Company, 606 South Hill Street.' u

mil¬

discount

of

of plant,

involv¬

program,

to

totalling

Despite
value

these

on

to

$33
In

a

from

creased

as

its

the

more

plant
over

recent

subsidence

$6

million.

write-offs,

book
basis in¬
share in 1945

corporate

$25

a

of March 31, 1954.
residential

business

the

is handicapped by very
competition from low-cost

severe

natural

which partially ex¬
relatively low kwh
consumption of 1,829 kwh—a fig¬
ure

age.

gas,

the

well below the national aver¬

President

Quinton

the

This esti¬

$52 million of
bond

for

full 12 months, our earnings peron the number of shares we

share

years

nor

plains

LINCOLN, Neb.—John E. Hus¬
ton

preferred stock.

or

$100 million

company

Joins Central

of about $25 million will
probably-^
be raised through sale of bonds "

or

income over the
1946 to 1948 of about

charges

ing

costs

staff

erence)., New
money
require¬
ments for the balance of the year

substantial

retired,

and

extraordinary

Chronicle)

junior

equity (common equity and pref¬

same

$34,500,000,

Financial

40%

handicapped
last

some

stock

quency

Florida,

McCarley & Co.
to The

attained

now

demand

the

three years

(Special

each of the past

end

prin¬
cipally intangibles. These figures
do not include the postwar fre¬

recently

ASHEVILLE, N. C.—M. H. Cox

stock in

three years and has
its
objective of a

in¬

the

million,

been

In

securities
of

about

office.

With

about $73 million for plant,
compared with a five-year aver-r
age of $67
million.
It has sold

pop¬

has

and expense, and the write-off

McKinnon

Lauderdale,

The company this year is spendr-

ing

transmitted

company's

consisting of
prior

to The Financial Chronicle)

Street.

conditions, but
hydro is still well below normal.

Despite this rapid growth, share
by

with

There has
been some improvement this
year
the bad 1953

over

lines

Peak

at about

increased

earnings

San

Rejoins Hornblower Weeks

Salle

.

this

far

since

these have exceeded

been

earnings still vary as
600 a share due to chang¬

113%."

Francisco.

La

as

hydro conditions.

Investment in electric plant

has

the

of

but

ing

any

our

territory

80%

was

in

The

on

killowatt-hours

rate.

Anglo-Cali¬

Bank

our

have increased

Stock

in

some

World

thus

greater rate.

even

and

FRANCISCO,

San

the

than

more

added

coming

are

of

of

(Special to The Financial Chronicle)

the

at

over

which

had

creased

Pflueger & Baerwald

of

years,

we

ulation

With

discovered

meters

new

than

they

year

Company.

city
much

jus¬

to

serves

We

use.

previous

change Building, under the firm
name

California

any other electric company in. the
country. That growth is continu¬
ing. In 1953 we installed nearly

Howell is engaging in a securities
in

Southern

added 319,000 customers

Ark.—Gilbert

offices

York

the end of 1953, for example, that
Southern
California Edison had

Gilbert Howell Co. Formed

from

Edison

recent talk

a

Society of
he remarked,
growth of the area

recent

preceding

ROCK,

be¬

comoany

the

of

In

company's growth

Wilson

Boulevard.

LITTLE

the

Analysts,

serve

...

Southern California Edison in
the postwar period has more than
doubled its effective steam
capa¬

neighborhood of $3.75."

has repeatedly been characterized
in superlatives. The record of the

Opens

Va.—J.

the

ac¬

recently

of

President

Security

of H. R. Hudsen Co.

name

Quinton

Electric Institute.

under

Street

together

6%.

President

came

Hudsen

for only

Harold

(Special to The Financial Chronicle)

only 1.3% of
the ten largest in¬

and

customers

counted

load
through greater
appliances — in the past
they have been too busy provid¬
ing new plants to undertake pro¬
motional work.'\
' ;>'"i"
of

common

considerably

power

industry.

Forms H. R. Hudsen Co.

Atomic

Energy Commission, within itself,

hydro

pur¬

wholesale and.miscellaneous.

utili¬

goal

attainment.

was

residential, 8% farm, 21% com¬
mercial, 25% industrial, and 9%

dustrial

of

In

(plus

residential

use

Hoover,

steam.

revenues,

stallations today is to demonstrate

that

*

hydro

Revenues

oppor¬

energy

6%

However,

exceeded

in¬

and its in¬

a

AEC by providing

plans.
build¬

from

another

and

chased.

tional prestige and ultimately our

in

major challenge to the Atom¬

lished and is being encouraged by

Depository Library for the gov-

informed

industry's performance in this

(Special

electric power from nuclear fuel is

the

55%

acting

Industrial Forum has been estab¬

a

purchased

write-offs.

Called upon.

that irradiation facilities

Materials Testing

the

in

is

to build the reactor. Further

responsibility

to

facilities

may

Industry

hydro

was

Dam), while steam units provided

obtain

being of the country is at stake,

upon

permitting

industry

inter¬

last year

10%

challenge which faces

Exchange.

made

being

the

with

con¬

territory served by the company
includes large areas devoted to
farming, truck farming, and fruit
a
formidable one, but the stakes
growing, much of which is made
are too
high to think of failure. It possible by irrigation. Industrial
is not only that the economic wellactivity is well diversified be¬
The

was

recognized, and the AEC installa¬
tion

a

to

design

carried out by the AEC's

was

actor

be typical.

turn out to

may

the Col¬

on

River, transmitting

power

your

zation in your own

confi¬

reactor.

States, it
generating

the

siderable amount of power for its
About 29% of generated

start

atomic

of

some

own use.

and

Seek out and

final

adopted;

been

AEC-owned

It

orado

participation in the future.

atomic

of

program,

that

operates

units at Hoover Dam

business

struction

Edison

of

As agent for the United

simplifica¬

for

possible

in

and

you

making
now

experienced

an

creased

that

reactor

7California

population

a

advantage

Take

:

information and

experience is engaging in

by

This

MTR.

made

deter¬

improvements

submarine

ties of the Commission for atomic

has

the
your

which

opportunities

guidance

They utilized in their

installations

work

in

energy

3,400,000
in central and southern
California,
energy costs and how it might including the cities of
Long Beach,
offer you opportunities- for in¬ Santa
Monica, " San ' Bernardino
(served jointly with another util¬
creasing profits or services. De-ity), Alhambra, "South; Gate, etc.

other necessary criteria

suggested

were

Ridge

in

requirements,

design

with

of

Utility Securities

Southern California Edison
Company
Southern
serves

LOS

dustry to utilize the unique facili¬

energy

to

you

position and in¬

own

atomic

com¬

A policy of permitting in¬

energy.

of

light of how it might affect

bers

the

funds

applications

mercial

all

urge

your

terests

ested party in reaching a suitable

dustrial firms desiring to explore
with

Public

done

be

Commis¬

By QWEN ELY

would

SAN

velopment to

Energy

sion alone.,

and

Laboratory worked with

and

tions

the

reactor

a

representatives

Basic

an

reactor pro¬

power

reliability, simplicity

work

lished

energy

To

toward the goal of economical

fuels.

atomic

known

electric power produced from nu¬
clear

the

into

gram.

creasing industrial participation is

ress

by

business, I would like to comment

dence,

Needed

all

the notion'"that it should

field may well determine

tions in design to be made and for

-

Increasing Industrial Participation
We

very

illustration of how indus¬

an

.

of

are

high indeed.

basic

scientists

costs

power

ical

more

al¬

are

Army to explore the possibility of
utilizing nuclear energy to supply

for design.

has

And there

sources.

should like to point out that chem¬

industry

nuclear

ready situations where that is the
case.
Just such a situation led the

reasonable

I

States

demand
now
only if its cost were lower
than that of energy from conven¬

National

more

And

United

or

industry for help in fields where

they

the

In

than

more

energy would be in great

no

We regularly turn to

experience.

that will cost no
electricity costs today?

power

try

Under the Atomic Energy Com¬
mission's present program, better
solutions

that time to produce from nuclear
fuels large quantities of electric

development at

energy

have

.

or even

justify

that' I

opportunity

power

.

dates

can
afford to participate in the
is
available, now.■■;; ipz7:>
". .-7 atomic energy program now and
It is unquestioned that the day
later." Develop
a
planned pro¬
will arrive when our supplies of
gram of participation and make
low-cost coal, oil and other fuels
will not meet the demand, and at your proposal to the Atomic Ener¬

p r o g r e s s.r

that time it will be necessary to
reactor opera¬ use more expensive fuels with a
tion.
7/7'
V* '
7 v/7 ; ' /■ resultant higher cost of the ener¬
v
These are not all the problems
gy
produced.
The question is,
in atomic energy development and when?
And can we be ready at

profit from

two

commented upon. Nor do I think
; that anyone - seriously entertains

I

the complexity of problems asso¬
participation leave nothing to be
ciated with waste disposal.
To-' desired or that they give industry

day,, this

mention

37

feels,

however, that the company has a
future opportunity to build up its

Your

RED

CROSS
must carry on

f

7
38

(2690)

The Commercial and Financial
Chronicle...

Continued

from

Most geographic regions reported mild declines,
including the
States.
The toll in the East North Central Region fell
sharply, to 17 from 32. Only two areas had heavier mor¬

5

page

Throughout the country an in¬
creasingly
large
proportion
of
major"- appliance sales were- re¬

Pacific
more

The State of Trade and
"results largely
was

from

tality during the week;

Industry

from 59 and

than
were

higher level of new home building than

a

expected."

last

twice

as

West South

Steel Output

Middle Atlantic failures

South Atlantic to 21

from

in six of the nine

year

numerous

a

as

Central States.

climbed

More

79

to

ported made by discount
direct to consumers.

failed

concerns

geographic regions. Casualties
ago in the South Atlantic and

year

In

14.

contrast

this general

to

Showrooms and caif
generally crowded with

rise from

than

1953, three regions showed declines: the New England, East North

Scheduled to Show Fractional Rise

production reached its highest level since Feb¬
ruary, touching 73% of capacity in the past week after climbing
two points over the preceding week, says "Steel," the weekly
magazine of metalworking.
The 73% level is only 2.5 points
below the year's high mark recorded in January.
The increase in the national rate resulted from gains in
Wheeling, St. Louis, Birmingham, the Far West, Detroit, Cincinnati
and, from revised rates for the preceding week, in Cleveland and
Pittsburgh Operations declined 1 point to 82.5% in Chicago and
to 57% in the Mid-Atlantic district, while holding unchanged at

tion is to

69% in Youngstownl, 52%

level.

ingot

in New England and 67.5%

The

wholesale

or a

The
of 31

in Buffalo,

index

figure

represents

the

with

compares

total

sum

of

foodstuffs and meats in general
show the general trend of food

raw

$6.54

the

high
the

•'

vacation

then

and

A

the end of the next two weeks.

recover,

visible

was

in

a

year

Depressing

*

Users look at it this way: A small increase in
prices won't matter much. Effects of such an increase might
be counteracted by price concessions the steel producers are mak¬
ing, such as waiving of extras and absorbing of freight charges,

the

major

influences

American

and

Iron

Institute

Steel

announced

that

the

operating rate of steel companies having 96.1% of the steelmaking
\Japacity for the entire industry will be at an average of 73.5% of
capacity for the week beginning June 14, 1954, equivalent to
I,752,000 tons of ingots and steel for castings, as against 1,746,000
tons and

73i2% (actual)

a

week

based

on

For the

duction

annual capacity of 124,330,410 tons as of Jan. 1, 1954.

like week

month ago

a

1,712,000 tons.

A

year

placed at 2,183,000 tons

was

weeks in 1954 is

comparable because capacity
percentage figures for last

117,547,470 tons

as

ago

96.8%.

or

for

annual

on

of Jan. 1, 1953.

storage,

in

wheat

included

presum¬

1954,

the

improvement

June

from

capacity of

'

reported

was

Advances in Latest Week

like

1954

8%-

of

the

period

week

a

year

to

Board's

serve

store

index

sales in

.

108,268

Loose

sharply lower.

de^aftment

1954, registered

a

drop of 14% be¬

low the like period of last
year. In

stocks of

cocoa

declined

the

103,438 bags,
week earlier, and compared with
159,543 bags at

a

1953,

in

of

of

while

15%

the

was

1

the

cash

market

drop of 3%

a

June

5, 1954,/a decrease of
registered from that of

was

using

year

ance

should

this

year

whereas

be

.!/

ago

for

made

in most

Saturday in observance
morial Day holiday J.. ■.: * "

Spot cotton prices

in

a

stores

districts

<■■■

cotton.

active.

134,595 units, advancing 21% above last week's out¬

week, the agency reported there were 20,042 trucks made
in this country, as against
16,299 (revised) in the previous week
and 17,742 in the like 1953 week.

in

1952

when

there

175.

were

Mor¬

tality remained below the prewar level; the toll was down
26%
from the 279 in the
comparable week of 1939.
Failures with liabilities of
$5,000 or more declined a little
to 182 from 193 in the
previous week, but exceeded
considerably
the 146
of| this size recorded in the similar week a year ago.
Small casualties,
involving liabilities under $5,000, dipped to 24
from 25 last week and
compared with 21 in 1953. Liabilities in
excess

of

$100,000

against 16

as

a

were

week ago.

incurred by 21 of the
failing businesses,
'

All

industry and trade groups except retailing had
slightly
lower failures during the week.
A somewhat
sharper decline
brought construction casualties down to 29 from 37.
Contrary to
this downturn, retail failures rose
slightly to 105 from 99. Mor¬
tality equalled

or

exceeded

last

year's

level

in

all

lines

except

wholesaling; the sharpest increases from 1953
appeared in
facturing and construction.
'
'
*
'
-

**<

-

I

•

*

4

*<
I***. '

11.
1




-

.

.

±

.

i

•

J

V

*

f

t

•

L'

1

'

,

f

;

\)

■

•

'■

f
i

manu¬

Installment buying

'

t

<i
^

i

jij1'

reports

of

on

and

some

was

*>'•-' •'

McCormick, Ameri¬
Exchange
President,

Committee

ing
.

All

year.

for

the

regular
the Exchange.

of

are;

ensuing
members

Edward J. Cohan, Pershing &
Co.; Rudolph Deetjen of Emanuel,
Deetjen & Co., and Charles E.

last week

Stoltz of Charles

belowrlhe year-ago

elected

were

less

less

than

that

prompt.

olf a
hV

year

E.

Stoltz

&

Co.,

Class B members of

Nominating

Committee,
cording to the announcement;

ago,

ac¬

Joins H. L. Robbins & Co.

Consumers continued to
spend proportionally larger amounts
goods.
\
c
/

'I $ *
*
to The Financial Chronicle)

(Special

The total dollar volume of
retail trade in the week was esti¬
mated by Dun &
Bradstreet, Inc., to be 4% to 8% below the level

i

T.

Stock

,

much

were

Me¬

James T. Tobin, as Class A mem¬
bers of the "Exchange's Nominat¬

Week and Year Ago

Wednesda^of

thfe'

ward J. Bowler, Thomas J. Heffernan, William H. Riess, Jr., and

reported^ in the

were

last

closed

yere
of

has announced the election of Ed¬

soft than hard

on

WORCESTER, Mass.
H.

?neo year, a£°- Regional estimates varied from their-comparable
1953 levels
by the following percentages* South O .fo
—4; New
England —5 to —9; Midwest and Southwest —6
to —40; Northwest
—7 to
—11; East and Pacific Coast —8 to —12.

Brazil

with
40

H.

Pearl

has

L.

become

He

William

connected

Robbins; &

Street.

—

Co;, Inc.,

previ¬
ously With Townsend, Dqbney &
Tyson.
was1-'

.

Apparel
and

sales

children's

declined

lines.

•

noticeably

last

week X in

women's

The

most1 highly promoted wpmen's items
included beach
wear, handbags, jewelry,
blouses, stoles and lin¬
gerie.

Increases

,

Food purchases continued
heavy
giving more attention to meat and

last week

dairy items.

•

Instant

types

and

coffee

(Special to The

withichousewives

ST.

retail

last

with

408

led

level.

sales,

and

Slayton

Olive

the

barbecue

past

devices,
and

week

werU

&

Company,

markedly

hardware and metal
picnic items sold well.

E.

Inc.,
>

.

Dean Witter Adds

:

(Special to The Financial Chronicle)

LOS
sales

Cooling

Mo. —Charles

Street.

^ *<-

to gain at the expense; of
'ground
climbed higher. Margarine was
eonsistently

household

year's

Financial Chronicle)

Brown, Roy O. Foss, and Reva A.
Jennings have become connected

^

Total

LOUIS,

*

continued

tea sales

popular.

below

Three With Slayton Co.

were

registered in men's suits and
haberdashery
in most
parts of the country and sales
topped thosgkof the past
several weeks. Dress
shirts, ties and robes were in improved de¬
mand as some Father's
Day gift buying occurred.
;

furniture

l>-r

Dips Below Previous

and retailers'
collections

Business Failures Edge Lower

or

Edward

quite

the

"Ward's" estimated Canadian
plants turned out 4,790 cars and
1,019 trucks last week, against 7,062 cars and
1,312 trucks in the
preceding wedk and 8,093 cars and 2,945 trucks in the
comparable
1953 week.

occurred

entries

decreased from the previous week
volume for the similar
period.

Last

167

loans

Retail sales in the
period ended

put of 111,314 units.

when

CCC

year.

Trade Volume

trucks

Commercial and industrial failures dipped to 206 in the
week
ended June 10 from 218 in the
preceding week, Dun & Bradstreet,
Inc., reports.. However, casualties were notably higher than last

was

week
May 28 totalled about 400 bales, while
loanlfepayments in
the same week were
107,500 bales. CCC stocks of ife loan cotton
as of
May 28 were reported at 5,505,900 bales.'
,v '

industry for the latest week, ended June 11;
Automotive Reports," assembled an esti¬
compared with 95,015 (revised) in the previous
and

last

ended

"Ward's

cars

-

cotton

loaa^EfiPOSsessions.
Reported sales in the 10 spot markets were
small€gr~and totalled
47,100 bales, against 68,800 the previous
week, an#35,000 in the
like

The automotive

of

hold

advances in check were
curtailment by sheeting mills and further
heavy

week

total

crop

can

Tending to

U. S. Auto Output Shows Gain Of 21% Above Week
Ago

year

-

new

days

Exchange
Nominating Comm.

trading range.
Supporting factors included, fairly
price-4ixing and moderate purchases by domestic mills of

Foreign demand for both old and

that

six

week

American

mostly steady and continued to hold

narrow

active

new crop

Loadings totaled 612,315 cars, a decrease of 163,174 cars or
21% below the corresponding 1953 week, which did not include
the holiday, and a decrease of 71,932 cars or 10.5% below the
corresponding week in 1952, which did not include the Memorial
Day holiday, but was affected by a strike in the steel industry*

amounted to

were

fact

the

stores
were- open
the corresponding

in

:

comparisons, allow¬

on

-

in

iweeks

For the period Jan.

year

*

reported

four

1954 period.

*In

was

selling at the lowest price
early February. In the Chicago livestock
market, steers
hogs were slightly higher for the
week, while lambs declined
moderately.

to

the

1954,

reported.

1%
the

was

similar week

for

ended June 5,

sugar

lard

preceding week, *May 29, 1954,
increase

from that

slightly to

and

American Railroads.

production

•

New

since

Loadings of revenue freight for the week ended June 5, 1954,
which included the Memorial Day
holiday, decreased 76,977 cars or
II.2% below the preceding week, according to the Association of

mated 114,533 cars,
week.
The
past week's

*

■

Federal : Re¬

York Gity for
the weekly period ended fJune
5,

-

warmer weather.
Following the pre¬
ceding week's dip, coffee prices moved sharply
higher last week.
Demand was stimulated
by the announcement that Brazil had
boosted its government-guaranteed
price for coffee, and reports
of increasing
damage to the Brazilian crop because of rains.

Loadings Decline 11.2% in Memorial Day Week

to

to

store

ago.

the

.

according

re¬

1

department

.

v

was

Jan.

trade in New York City
week, according to trade

According

product with the advent of

above the preceding week, and an increase of 413,000,000
kwh., or
5.0% over the comparable 1953 week and 1,532,000,000 kwh. over
the like week in 1952.

Car

from

observers, was expected > to ap¬
proximate the sales volume of the

prices advanced moderately in active
trading,
stimulated by the expectation of a broader
demand for the refined

The current figure represents an increase of 412,000,000 kwh.

r

,

.

5,

the past

restricted to small lots for immediate
to move

For

Retail

-

swing in the Southwest and bookings of both hard
were

8%

registered a decrease of 3%
below the corresponding period of
1953.
r

this time last year.

industry for the week ended Saturday, June 12, 1954,
estimated at 8,658,000,000 kwh., according to the Edison Elec¬
..

a

an

and power

tric Institute.

on

taken

sales

were

Cocoa values continued

Warehouse

The amount of electric energy distributed by the electric light
was

sales

as

5, 1954
below the level for

18%

decrease

a

ported.

easier

Raw

Electric Output

■

;

store

of the similar week in 1953.
For the four weeks ended June
5,

ment of the

The operating rate is not

based

are

generally ' im¬
-

of

crease

tone reflected indications of a
substantial move¬
Brazilian midcrop and expectations of active
selling
of the Dominican
crop during the next few months.

was 71.8% and pro¬
actual weekly production

lower than capacity in 1954. The

was

year

The

the rate

the

nearby.

were

that

declined

and soft wheat flours
and

weeks.

cautious

preceding week. In the pre¬
vious week * May 29, 1954, an in¬

flour business continued at a
disappointing rate.
inclined to hold aloof until the Winter wheat move¬

ment is in full

ago.

The industry's ingot production rate for the
now

were

values

declined

in

Trade

Domestic

Buyers

rye

trading

of

to

from
the Federal Reserve Board's index
for the week ended *June

fairly steady throughout the week. Vol¬
grain and soybean futures on- the* Chicago
sharply in the holiday week, but daily
average purchases at 43,900,000 bushels, compared
favorably with
the 42,400,000 for the previous week.
of

ume

Board

it declares.
The

and

few

reported

country-wide basis

steel

Oats

the

that

in crop prospects as the result of
good rains and limited domestic
and export demand.

the steelworkers.

next

\

thronged

in

the

ably for impounding under the government loan.

Steel users, it states, haven't even shown an interest in trying
to beat a price rise that might stem from a new wage contract for

centers

Buying
so : far,
slightly below levels of last year,
in spite of widespread
agreement

ago.

to terminals with most of it scheduled

move

!

"

buyers

proved.
of

com¬

preceding

•

was

Irregular movements featured grain markets the
past week.
Although wheat was moderately lower for the
week, the mar¬
ket displayed a firm tone at
times, as new crop grain started to

However, most of the bets are still

continued

in

pound

1

some

week

many parts of
the country and were
expected to
place most of their Fall orders

commodity markets last week. The daily wholesale commodity
price index, compiled by Dun & Bradstreet,
Inc., closed at 274.30
on June 8,
up slightly from 274.00 a week
earlier, comparing with

strike.

a

trend

the period

week
below the level of

Department

somewhat firmer

276.32

the

market

year,

•

with

Apparel

its chief func¬

J

were

rather

Wednesday of last
substantially as

1953.

prices at the wholesale

Firmness in Latest Week

perhaps, in the fall. On
the other hand, some people who have been rather pessimistic
about the steel business are exhibiting some optimism and think
there'll be a gradual upswing in the second half. The second half
starts only two and one-half weeks from now, it adds.
Expectations of a strengthening in the steel business aren't
predicated on protective buying against a steelworkers' strike,
since it's too late to hedge against a strike. A strike can come at

•O)

but

,

summer

against

per

-

Wholesale Commodity Price Index Shows More

people, "Steel" notes, think the ingot rate is about as
it will go for a while. They think it will turn down during

as

last

price

and

use

t

it states'
Some

pared

price index, compiled by Dun & Bradstreet, Inc., showed a further mild dip last week, following the
sharp drop of a week ago. The index fell to $7.36 on June 8, from
$7.38 a week earlier, and the all-time high of $7.46 registered two
ago.
The current
rise of 12.5%.

on

improved

food

weeks

lots

customers.

ended

Wholesale Food Price Index Shows Further Mild
Drop

houses

cars

Wholesale activity in

Central and East South Central States.

in Latest Week
Steel

Thursday, June 17, 1954

H.

the

ANGELES, Calif.—Gilbert

Schubert
staff

of

has•been
-Dean

South Spring Street.

.

added

Witter,

'/']

L

to

.632
-,

Volume 179

Number 5334..

The Commercial and Financial Chronicle

.

(2691)
t

,

The following statistical tabulations

Indications of Current
Business
AMERICAN

AND

Activity

STEEL

Indicated steel operations

week

INSTITUTE:

(percent

and castings

ol

capacity).

_June 20

PETROLEUM

(net tons)

<

-June 20

§1,752,000

oil

and

INSTITUTE:

condensate

)-

output—daily

(bbls.

average

42 gallons each)

Crude

;

to

runs

Oflsoline

outniit' 'bbls.)

Kerosene outnut
Distillate

fuel

(bbls.)

average

„June
June

___

(bbls.)

oil

I~~I„

June

(bbls.)
Residual fuel oil output (bbls.)
Stocks at

III"

and

Kerosene
Distillate

fuel

Residual

oil

fuel

(bbls.)

oil

(bbls.)

at

at

(bbls.)

Revenue

!

ENGINEERING
NEWS-RECORD:

8,128,000

24,559,000
74,757,000
46,502,000

46,433,000

10,983,000

23,416;000

20,210,000

23,676,000

Stocks

71,224,000

63,939,000

76,467,000
42,453,000

Unfilled

5

612,315

689,292

647,954

543,399

592,719

588,414

(U.

coal

June 10

160,009,000

June 10
__________

S.

BUREAU

and

lignite

OF

107,377,000

$344,045,000
200,358,000

$368,684,000
214,580,000

165,507,000

97,010,000

143,687,000

June 10

154,104,000

124,153,000

66,724,000

109,021,000

41,354,000

30,286,000

34,666,000

121,863,000
32,241,000

6,450,000

June

(tons)

5

5

469,000

DEPARTMENT STORE SALES INDEX—FEDERAL
RESERVE
SYSTEM—1947-49 AVERAGE = 100
June

*7,235,000
c

6,775,000
426,000

97

Electric

output

FAILURES

(in

000

123

AND

June 12

INDUSTRIAL)

—

DUN

t

Pig iron

Scrap steel

-03 METAL

(per

Total

PRICES

(E.

-a.

Lead

(St.

Zinc

Louis)

(East

8t.

'

at

.

$55.26

$39.83

29.700c

29.700c

9,

29.700c

27.625c

14.250c

9

9

Social

Telephone

93.500c

91.750c

14.000c

13.250c

13.800c

13.050c

10.500c

C

29.800c

10.250c

11.000c

Other

Public

91.58

102.13

115.04

•'J-'\>. 114.66

115.82

105.69

Hospital

103.80

Other

June 15
-

June 15

Orders received

and

2.55

2.51

3.12

3.15

3.17

3.12

3.62

2.90

2.92

2.86

Percentage

of

Unfilled

3.06

3.02
3.14

3.49
3.23

3.24

3.50

w

3.14

3.11

430.2

439.0

3.74

3.12
v

438.5

289,462

239,769

5

223,307

241,709

298.213

233,423

5

81

91

87

87

5

427,655

364,150

429,184

AVERAGE

=

107.24

108.34

LOT

DEALERS

EXCHANGE

—

AND

SPECIALISTS

SECURITIES

ON

N.

EXCHANGE

Y.

Odd-lot purchases by dealers (customers' sales)t—
Number of shares—Total sales
Customers'

other

sale#

Round-lot

dealers—

553,347

5,667

4,685

8,162

997,892

1,102,558

$50,707,069

;

358,470

178,030

298,180

3~58~470

Number of shares

ROUND-LOT

ACCOUNT

29*0,460

OF

178~030

=

100

6,031,684

*36,646

511,737

2,860,189

2,718,856

2,008,587

—

114.8

113.7

and

bakery

products

and

111.5

111.4

111.1

121.1

121.2

118.0

110.5

109.5

106.8

104.6

vegetables

.108.0

-

109.0

110.0

107.8

115.0

113,6

home

at

112.1

111.8

poultry and fish
products
foods

112.3

110.4

118.5

119.0

117.0

128.2

fuels

fuel

and

122.1

107.6

106.5

123.9

oil:

128.0

107.6

_

125.8

123.6

106.1

107.2

107.8

116.9

117.5

114.3

operation

104.1 ;•

Men's

and

and

girls

Other

104.3

104.6

98.4

99.0

99.4

107.1

boys

Footwear

107.2

107.3

116.1

114.8

116.1

.

ON

THE

STOCK

MEMBERS

N.

Y.

90.4

90.0

92.1

129.1

129.0

129.4

124.9

124.4

120.2

112.9

114.1

apparel
care

319,420.

355,060

Personal

280,580

STOCK

care

and

Other

TRANSACTIONS

(SHARES):

ELECTRIC

EDISON

Kilowatt-htour

May 22

415,970

354,430

388,830

Other

May 22

11,291,000

9,978,370

10,184,860

7,084,890

Revenue

May 22

11,706,970

10,332,800

10,573,690

7,333,360

March

sales

Total sales

_T———

FOR

ACCOUNT

OF

Month

248,470

MEM¬

Of

ultimate

to

(000's

ultimate

33,031,911

customers

Mar.

31,804,817

596,954,000

558,999,000

50,078,218

50,033,503

104.5

at

33,112,429

589,223,000

104.6

119.8

of

3—

ultimate

of

117.9

consumers—

omitted)

customers—month

_________

Number

107.9

120.1

INSTITUTE:

sales

March

from

108.2

120.2

services

and

112.5

103.5

recreation

goods

Short sales

TRANSACTIONS

6,543,601

5,109,543

1,987,000

Transportation

Total Round-lot sales—

BOUND-LOT

(net tons)

1947-49

—

•5,146,189

114.6

Reading

May 29
STOCK SALES

EXCHANGE

,

30,940,000 Not Available

•2,204,000

Medical

325,430

May 29

4

purchases by dealers—

AND

INDEX

,

home

at

Women's
.

4 May 29

sales

9

35,168

-4.

of month

Apparel

,

298,180

75

13

Housefurnishings

$21,828,731

325,430

15

59

Household

545,864

$43,666,483

71

15

,63

112.4

Solid

7,483

979,915

$41,910,730

May 29

TOTAL ROUND-LOT
FOR

1,110,720

79

4,658,394

tons).

at end

Gas and electricity

'

Short sales
Other

1,002,577

985,582

May 29

Number of shares—Total sales

Round-lot

$32,335,081

684,124

-May 29

—

sales by

1,090,970
$52,036,873

243

33

4,693,562

Rent

1,014,227
$45,526,035

May 29

value

Dollar
-

—May 29

sales

'

958,824

$43,646,639

230

140

April:

Other

May 29

-310

158

of April:

tons)..

(net

Fruits

May 29

113

"■<?*,•

1,952,000

Housing

of 6hares

Dollar value

short

(net

of

Dairy

STOCK

40

67

.\

28,050,000

tons)

(net

tons)

coke

Meats,

106.17

/

COMMISSION:

*

Customers'

coke

Food

Odd-lot sales by dealers (customers' purchases) t—
Number

lignite (net tons)__i

OF MINES)—Month

(net

Cereals

100

service enterprises
development

Food

8TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

*3

17

,

Items

596,571

106.76

All

29

47

building

anthracite

coke stock

Month

382,192

237,514

;

__June

1

32

74

and

coal

Beehive
Oven

410.4

371

165

(BUREAU OF MINES)—Month

(BUREAU

Oven

3.50

'*1K

146

April:

CONSUMER PRICE

5

June

of period

383

149

public—

Production

3.63

3.04
'

COKE

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1940

other

Pennsylvania

3.88

3.20

3.15

3.10

3.47

.

June 11

at end

50

3.68

June

(tons)

947

32

water

and

Bituminous

3.52

3.18

June

4

activity

orders

of

ASSOCIATION:

.__

878

31
399'

nonresidential

COAL OUTPUT

3.41

3.05

June 15

(tons)

12

992

public

Conservation

'

(tons)

Production

8

15

Miscellaneous

June 15

INDEX

9

36

83

Sewer

3.17

June 15

PAPERBOARD

288

institutional

104.14

June 15

COMMODITY

272

'

and

101.97

June 15

NATIONAL

53

291

171

100.16

•

June 15

Group
Group

50

„

112.37

v:

2.52

June 15

Utilities

377

54

Military facilities
Highways

All

Group

161

36

building

110.88

111.07

13

127

Industrial

109.42

110.34

25

358

_

97.94

108.70

26

22

"

:w-

104.66

111.25

32

16
27

;___

104.14

110.52

39

IS

telegraph.

101.14

108.88

35

145

110.52

June 15

40

379

112.75

June 15

76

131

27

112.CO

June 15

Group

31—

■

48,641,921

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists
Total

Index

purchases

May 22
May 22

1,100,400

246,080

224,130

227,530

934,070

890,610

1,242,210

1,158,200

1,133,740

773,080

1,118,140

May 22

405.630

312,200

319,800

Short sales

May 22

19,400

14,400

24,600

Other

14,500

May 22

414,830

283,330

310,310

224,860

297,730

334,910

239,360

358,742

May

209,250

Other transactions initiated on the floor—
Total

Total

Other

.

sales

sales

May 22

transactions initiated off the floor—

Total

purchases

434,230

\-

*

May 22

425,460

348,860

Total sales

57,780

40,390

41,750

384,047

381,365

456,7.40

424,437

May 22

2,065,530

1,771,342

.May 22

323,260

278,920

.

sales

U.

S.

(at

end

OF

MINES)—

20,084,000

21.802,000

—

23,567,000

18,740,000

20,891.000

month—barrels)———

27,045,000

28,906,000

4,773.000

—

—

(barrels)—

mills
of

STATUTORY

.

—As of May 31
at

PRICES,

Commodity Group—
All commodities
Farm

NEW SERIES
100):
5

—

U.

S.

182,180

1,809,930

1,601,447

1,582,285

2,133,190

1,880,367

1,876,165

-

that

obligations

Treasury

1,177,015
1,359,195

Deduct—other

June

8

110.5

*110.7

111.0

C rand

109.6

foods

farm

and

foods

8

96.5

'97.3

99.0

96.6

Balance

June

8

105.8

♦106.2

106.9

104.2

under

June

^Revised

figure.

52,310

$273,555,234

$271,126,620

$266,572,224

562,754

554,613

603,064

$270,572,006

$265,969,159

1,997,520

4,427,993

9,030,840

outstanding

not

owned

by

the

public debt and guaranteed
—

outstanding
to

public

debt

obli¬

debt limitation

1
June

8

90.4

97.7

99.1

—June

3

114.4

*114.4

114.4

113.5

-/

^Includes 726.000 barrels of foreign crude run
1, 1953 basis of 117,547,470 tons.

lew

r*

annual capacity of

face

outstanding

amount

above

ZINC OXIDE

of

obligations,

authority

(BUREAU

issuable

...

OF MINES)—Month of

April:

124,330,410 tons

as

Production

1954, as against the Jan.




total

93.9

c

of Jan. 1,

79,825

$273,002,479

be

—

Total gross

OF

-

other than

266,519,913

80,453

may

debt

public

gross

gation not subject

Meats

commodities

$275,000,000

271,046,794

(000's omitted):

amount

time

Guaranteed

1,277,800

293,880

face
any

Total

=

products

Processed
All

DEPT.

$275,000,000

LIMITATION

Outstanding—

384,195

1,807,400

.May 22

LABOR—(1947-49

93%

93%

—

DEBT

83%

273,484,781

:

obligations

WHOLESALE

21,709,000

$275,000,000

used

GOVT.

Total

326,435

423,115

.May 22

Total sales

of

April:
(barrels)

Capacity

57,760

398,970

.May 22

purchases

Other

of

(BUREAU

from

Stocks

Total round-lot transactions lor account of members—
Total

middle

average=100)

CEMENT

Shipments

295,650

May 22

.

sales

at

.

.May 22

Short sales
Other

(1S35-39

Month

Production

purchases

COMMISSION—

Employment

Railway

PORTLAND

-,625,720
735,640

Total sales

of

COMMERCE

109,920

996.130

May 22

—

sales

1,234,440

May 22

Short sales
Other

INTERSTATE

In stocks in which registered—

,

(short

Shipments

(short

Stocks

end

at

.

53

144

43

109.79

199.97

129

83

28

Educational

104.31

191

69

.

158

utilities

Nonresidential

99.91
110.88

'

169'
152

105

99

building

99.25

June 15

451

71

institutional—

construction

Residential

109.97

.

22

465

42

private—"

110.34
112.19

24

493

recreational

and

•99.70

'

885

93

26

!

public

other

1,012

855

34

29.575c

)All

2,013

972

103

Railroad

-

1,930

935

utilities—

29.675c

June 15

;i(OODY'S

$2,960

construction

29.700c
-

V',

Group

Industrials

$2,808

1,064

.

June 15

Average corporate

Public

103,644

267,693

OF

165

June 15
.

Group

Railroad

*81,814

alterations

and

14.250c

v:.

11.000c

MOODY'S BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds

>

101,207

2,090

Hospital
and
Miscellaneous

94.500c

r'.v

14.050c

June

.

,

" Public Utilities

S.

170

JUne 15

Industrials

.

and

14.050c

93.750c

9

•

'

$941,960
570,623

building
(nonfarm)—
dwelling units

Educational

4.417c

$56.59

$27.58

June 15

#
'

4.634c

4.634c

___june

corporate

Railroad

*335,113
♦220,516

Warehouses, office and loft buildings
Stores, restaurants, and garages
Other nonresidential
building

167

$56.59

9

—

'

248

$28.58

—June

at

Baa

_I

etc

construction

Public

*

Aa*

$637,444

S.

Commercial

$28.25

-

9

june

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

Average

U.

construction

new

Farm
___June

at

43,271

VALUA¬

THE

Nonhousekeeping
Nonresidential building (nonfarm)-

8,245,000

$56.59

8

June

Louis)

OF

LABOR)—Month of Mar.

alterations,

Additions

QUOTATIONS):

Lead (New York) at
v\'

PERMIT

CONSTRUCTION—U.

New

copper—

Export refinery at.
Straits tin (New York)

31,702

Residential

118

8,438,000

218

4.634c

8

June

•_.

Domestic refinery at

r

8,246,000

206

8

June

;i

M. J.

A

84,250
92,452

38,624

construction

Religious
June

(per gross ton)

Electrolytic

;

8,658,000

June 10

ton)

gross

OF

82,422

(tons)

DEPT.
LABOR—Month of May .(in millions):

&

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)

V;>

;

period

AREAS

•70,258

$3,082

of

•70,618
*200,740

294,416

end

73,654
64,566
209,828

Industrial

kwh.)__

(COMMERCIAL

BRADSTREET, INC
'

building

676,000

105

:'a

(tons)—

omitted):

BUILDING

:

5

9,997,080

of

residential

9,014,000

567,000

15,257

6,970,937

.7,467,000

—

non-residential

.EDISON ELECTRIC INSTITUTE:
.

DEPT.

S.

Private
June

102,071

58,494

;

487,238

at

URBAN

Additions,

MINES):

(tons)

122,339

63,246

$882,861

period

New

$204,387,000

grades "(tons

pounds)

CONSTRUCTION
IN

All

2,000

New

Pennsylvania anthracite

;

orders

(000's

-

output all
of

of

end

(U.

643,410

$325,516,000

120,434

of

—

(tons

at

BUILDING

775,489

5

June 10

municipal

OUTPUT

smelter

pounds)

Shipments

ENGINEERING

Federal

Bituminous

zinc

8,312,000

151,045,000

June 10

and

Slab

8,015,000

44,668,000

Ago

-

175,874,000

/
'

172,855,000

April

AMERICAN ZINC INSTITUTE, INC.—Month
May 1
•
" r' v

1,971,000

9,557,000

June

cars)

Public construction

v

7,168,000

Year

Month

STEEL

24,330,000

June

of

(no.

—

construction

State

6,764,000..

1,872,000
-

8,293,000

:-

April
(short tons) ,end of

AND

Previous

the U. S

INSTITUTE:
Steel ingots and steel for
castings produced
(net tons)—Month of May

6,408,700
-

IRON

TION

V Total U. S. construction
Private

*

2,000

June

CONSTRUCTION

2,183,000

,.

22,660,000
,

9,459,000

173,704,000

June

at

ireignt received from connections

CIVIL

,'COAL

9,825,000

•

June

:

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of
cars)

.

*22,914,000
2,336,000

1

June

gasoline

1

6,422,400
-

'

i

at

-

v-

of that dates'

are as

Month

(BUREAU OF MINES):
Production of primary aluminum
in
(in short tons)—Month of
Stocks of alumfaum

6,431,350
7,020,000

of quotations,

cases

ALUMINUM

-

June

unfinished

(bbls.)

V

1,933,000
-

refineries, bulk terminals, in transit, in pipe lines-

Finished

h

24,160,000

June

I

;

output

1,712,000

96.8

AMERICAN

6,466,350
117,144,000

in

or,

either for the

are

Latest

of
June

stills—daily

.

shown in first column

Ago

71.8

*1,746,000

that date,

on

production and other figures for the

cover

Dates

Year

Ago

'..:»73.2 «'

§73:5

*

Crude

Month

Week

-»

month available.

or

month ended

or

Previous

Wees

Equivalent to—

AMERICAN

latest week

Latest

IRON

Steel ingots

-

39

*

*

tons )

tons).
of

month

—

—

(short

tons)—-

10,074

11,172

17,563

12.827

11,167

17,246

17,109

19,862

28,551

7

40

The Commercial and Financial Chronicle...

(2692)

Continued from page

brought about

13

titude

of

change in the at¬

a

American

Continued

from

Thursday, June 17, 1954

7

page

exporters.

Wh;!fc the

majority of exporters
against government insur¬

were

Financing American Exports

now

insurance

on

however,

Under Increasing Competition

is

United

foreign transactions,

written in the
privately or

not

States

either

liquidity of its funds. This policy by the government. Private inis also expressed in banking legis- surance companies are exposed to
The views of the management lation.
The major share of bank the same hazards of exchange reof the Export-Import Bank
are loans and investments have there- strictions,
changing
regulations
x*ot
universally shared in. this fore relatively short maturities. It and
transfer problems as the
country.
A
memorandum sub- is for this reason that American banks.
mitted by the Citizens' Advisory banks are not interested in the
Tt
i<j
nnnarpnt
that
Ampriran
their

in

^arice

predica-

present

xnents.

Committee

"Already

United

commercial

taxpayer in the United States
first pays to build up the comjpetition and then as a competitor
must meet the cutrate price."

"I

want

do

clear

make

to

ject

to

£

payers' money to
Irnents abroad on
the

of

-

r.

-

of foreign laws. It is of
impossible for an Ameri¬
bank to evaluate future con¬

can

exchange

ditions, foreign
regulations

and

of

rates
given

any

country.

leaders

why should the
Export-Import Bank or any other
You

-should offer its services to Amer¬

ask

may

government agency assume such
■cial houses to enable them to meet hazards and risks at the taxpayers
foreign competition and prevent expense. The answer is quite simthe
recurrence
of
conditions Pie. government agencies do not
which existed in the early '30s >end funds, whlcb can be withwhen cheap labor, depreciation of drawn on demand and are theremanufacturers and Vvcommer-

"

■

'

foreign currencies and the sale of
credit rather
than
merchandise

on

rowers

Japan to almost force the United

thS?

.States out of the Latin American

issued

ment

the

following
Oct. 1, 1953:

on

is

cognizant

fact that United

restrictions

the

for

elimi-

which

hazards

of

history

The

£Jj
Pjdpwood importations,
r

AAhA-fAAli A

negotiation.

sacrifices

and

of

country's total wood pulp requirements

and

than

less

the

country's

^onTc

13%

of this

market

require-

plup

Ththi

our

assistance

we

mains.
ble?

to

Is such

Again for

the

price

Scandinavian

of

pulp

has

been minimized.

To revert

I know

ratios,

that

you

in-

are

1954 and future

First,

industry

™

?

answer is "yes," although

make you

terested in what to expect for the

of the

certain factors today could

to the operating

now

I refer

an answer

ingenuity

and
in

easily

skeptical.

the

At

re-

increase possi-

an

Slu in*enuny.

me.nts' Therefore the effect of the and the

diplo¬

In view of

o

from Canada presently estimated

government

rendering to friendly nations,
allies should do everything
possible to avoid a trade war.
Until

corrective

devised

our

occifrv
assisted to

credit

exporters

monMu

meet

the

competition.

of

since

it

the

con¬

The loss

has

in

been

existence has been

negligible and
fully covered by earnings. From

fac¬

the

industry

paper

95%

remedies

time

present

the

drain,

growth is close to being
balance, though this will vary
new

the

and

years.

operated

board

at

drain

industry

at

there

must

be

"f/ ^"7'i

JanT

pacity trom Jan. 1, 1954 to Jan. l,
1955 are 302,000 tons in paper and
be
458,000 tons in board. Percentage¬

intensifying
This

can

accomplished by allocating a spe¬
cial fund at the
Export-Import
Bank for credit insurance

or

guar-

wise

these

2.7%

for

amount

the

against

as

to

of

total

a

combined

long-term

a

industry
average

antees to be extended to Ameri- growth trend of 4.7%, certainly
exporters.

can

This fund should

be clearly earmarked for the

spe-

cific purpose of helping American exporters and no one else so
that it could not be used for de-

manage-

to export credit insurance, a government exP<>rt credit insurance

'AA?
cover

be

operated

economic
Such

an

0f

this

nLer
?ior,3

wuerai-

93 8%

aWrfoTboard
that

are

Operat-

concern
concern.

averaged

year

and

and

if

sound business basis

would not impose any burdens
the American taxpayer.

on

for

Predic-

DroducUon for the

1^

to
and 1955 wiU come very close t0
that of 1953, plus or minus 1 or
2%. To all intents and purposes
the paper industry should remain
stable. Not being as familiar with
the paperboard field as I would
thing

agency

self-sustaining

on a

Wrat^

cause
cause

®S*a"ished *2 lSe to be- 1 hesitate to do
and

political,

commercial risks.
could

io
nothing to

no[nuiK

^

Al an alternatlve' and in view

of th® "pP°slSon by Tthe

depending

than

more

ratios

should

any-

out the
that operating

average

forecasters and say

be

between

85%

geographic location.

exceeds

growth

remains

because-

virgin timber

""f ^
new

a?,1 ""l

cut,
place.

growth will not.
However, in every
the problem is recognized
area,
and the industry is taking steps;
to
assure
themselves. of future
is

take

wood

supplies whether they

pect to own the wood
is

ex¬

not. What

being done?
First,
t """I,

.

or

everything

possible
i&
e—

balng donf through science and
fducation to minimize the loss by

andJ1dMeMe:

,

Secondly, modern forest practices of selective cutting, planting
and turning are being carried out.
thrniicfli pJiifatinn

nn

tho

farmora*

through education on the farmers'^
Iands,
Thirdly, wherever possible the

industry is using high-yield pulping processes
to
increase
the*
amount of pulp acquired from the*

wood.

and 90%,

will

You

til it

on

still

are

ex-

operations

Bank

past 20 years fully
bank

of the

the

States manufac¬

turers and exporters are now

of

guarantees

these advantages.

firms

of

the

of

most

Export -Import

state¬

Manufacturers'

Illinois

"The

Association

obtain

and

change fluctuation and reoavment

the

of

Associa¬

Manufacturers'

Illinois

tion

of Directors

by

matter

a

.

governments

nate

markets.

Board

met

is

orCdtr^°fter
cond tion^
foe
foreign
bo?T
countries.

enabled the European nations and

The

matic

be

and

39,000,000 cords in 1975 or

as

suPPhea less than 2%% of this at 8% of total requirements,

a

only

can

action

high

^ us l°ok a* 1953. In that year In the Northwest, for instance,

-

.

tainty

feel that the Export-Import Bank
ican

subsidy in exports and
to
foreign buyers.
This competition cannot be met
through commercial channels.
It
as

incentive

Long,

(

year

.

course

competitive

business

our

are

a 56% increase providing the same:

cords ^annually.

our

.

Henterprises."
Many

the hazards of exchange
and
changing
ex-

to

but

vantage over the: integrated mill,

000,000

range forecasts, however, put domestic pulpwood requirements as-

are

large scale in

of

of

requirements

nornor

amounted to 10.8%. Today
the estimated figures put pulpwood even with firewood and
fence posts at approximately 25,ease

change regulations and the uncer-

finance investa

development

an

cover
cover

dustry's raw material was being
dumped here at low prices it encouraged companies to lower their
PaPer prices, particularly the nonintegrated mill which is wholly
dependent on market pulp and
which, because of the low Scandinavian Prices had a distinct ad-

fluctuations

that
the
government
must question both its right and
its financial ability to use taxeveryone

,

used

It would be sub¬

American laws.

phrey said:

trade

re¬

protection

the

and

dollar

mal

the

forego the security of the

would

with

fared

now

of

terms extended do not
extended

waiving

be

buyer in the foreign land rather
than
its
customer.
The
bank

Secretary of the Treasury Hum¬

arc

foreign governments rather than ordinary trade
competition.
The
long
credit

financing

bank

ould
would

course

the

A

bankers.

their

from

sponse

result is that

The

States.

seek¬

manufacturers

American

the

in

products

foreign

of

exnorters

competition

ing the financing of their foreign
bills without recourse find no re¬

eign competition built by Ameri¬
can dollars has led to the dump¬

ing

foreign

long-term

credit.

find that the for¬

we

of

extension

by Senator

appointed

Capehart, states in part:

The Paper Industry Commands
Financial Respectability

10 years ago, most exporters
favor such insurance. Credit

ance

note

I

that

Fourthly,

have

they

increasing;

are

the use of hardwood which, at the
I believe that the creation of
ing intense competition in world
earnings. I have done so for two moment, is plentiful,
Export-Import Bank authorized
markets
from
other
industrial
such facilities would serve notice reasons.
loans in a total of $6,307,186,251.
First, because you have
Fifthly, they are making morecountries; : that
European
and This business has been transacted on the rest of the world that we the earnings of the various com- and more use of so-called wastewill
not tolerate
Japanese exporters, through the at a net
indiscriminate panies in the industry to date. In wood from logging and industrial
profit of about $407 mil¬
assistance of their governments,
credit competition; that we will fact when I want to find out any- wastes.
lion, $83.4 million of which has
-are
able to extend longer credit
been paid to the United
States not relinquish our foreign mar- thing about earnings trends in the
It is also interesting to note
terms than United States manuTreasury in dividends.
The re- kets* .Such a notice will have a industry, I invariably turn to one that pulp and paper companies in
facturers; that United States man- mainder is carried in reserves for sobering effect upon our friends of your associates as you are bet- the United States own approxi•ufacturers stand to lose some of
iosses an(j contingencies.
Losses and enemies.
ter posted than any other source mately 26,000,000 acres of forest*
Feb.

2, 1934 to June 30, 1953 the

avoided mentioning any figures on

^

their foreign markets
this

meet

growing

The'resolution
eluded

of

unless^ they

wrjtten off totaled $279,562. Loans

competition.
Board

foe

.n

i

guarantees to United States
companies and individuals who
credit

facilities

in

adequate amounts from commer¬
banks

because

and duration

the

for

primary

considera¬

financing should be

assistance

direct

terms

of the credits;

the

"That

tion

the

of

manufacturers

American

to

and

exporters

without regard to

the size of the

enterprise or of
transaction; and

the

"That

.should

loans

or

particular

guarantees

special fund

a

a^

Bank

a

t.

Extended Credit Insurance in

or

must

Our competitors do not

nancial

facilities

for

the

lapk fi¬
Exten¬

of

sion

long credit terms. Gov¬
ernment export credit insurance

driven

out

Switzerland.
The

now,

than

export

competitors

of

before

certain

try

to

we

are

now

Clarence

1

All of these countries have facil¬

(Special to The Financial Chronicle)

ities for long-term credit financ-

You

,

ask why

may

.

.

is

,,

this need

crediT facilftiesnot ^net bvAmeT
by Amer-

tredit tacuities not met
*ican

banks?

to have

a

Why is it necessary
government agency in

Ihis business?

Short-Term

Credits

As you know, the funds lent by
American commercial banks are

primarily deposits of their customers, which can be withdrawn
demand, and it has been the
policy of prudent bank management to protect its depositors by

on




thrn.iBh

whether

snw-ial

ffnv

However,

I

can't help

down to 84%. profits as
were

a

percent explained that
that

8.6%.

^

Pulpwood Drain

At

this

point I

digress for

a

in

would

U. S.

like

moment to

that is the backbone of

a

our

continual

to

field

indus¬

try and about which many ques¬
tions are asked. Remember, I do
not

pretend to be
what I offer you is

expert but
brief resume

an
a

the

and

$200

limit

million

of
as

its

Ashlev
„

?

for

?

manv

vears

was

many years was

with Goodbody & Co.

to
with

$100 million previously in effect.
.

.

The object of the increased capi-

tal, according to the annual report

were

uses

for

ulation

development of new
Today the pop¬

paper.

of

the

United

States

ia-

158,000,000, in 1960 it is expected
to be 180,000,000 and in 1975 itwill

probably be between 220 and

225,000,000. Just this increase ir*
population alone would call for
a

substantial

increase

in

paper

become

associated

and you can see why some peopie are predicting a doubling of
present production by 1975.
I
I have one last point I would
like to make and that is if theprojected increased capacity

vey
ures

with

is the latest official set of figavailable, but even though

the pulpwood

BOSTON, Mass.—Paul W. Hatch
has

the inventiveness of the industry

comparatively small. Unfortunately, the 1944-45 Forest Sur-

(Special to The Financial Chronicle)

La-

b^t enter

out that the pulpwood drain of

the United states forest resources
iis

Joins Lamont Co.

liability

compared

factors;

of the'Tndustry, and board production, but couplepulpwood. Before I go this with foe growth trend of per

Mr

Export Credit InsurCorporation this year in¬
creased its capital to $15 million

two

influential

B0ST0N> Mass.—Iteymond E. basic raw'material

_

Canada's

the

most

the increase in population and the*

_

No

were

Jaf?uSnJPectai gov- Ashley has become associated with namely,
guar! Qoodbody & Co., 140 Federal St. any furfoer I would like to point capita

stitutions under government
6
an^e-

!

Industry

point out this one fact, that in

of those who are. The field is the

ance

Commercial Banks Can Furnish

Only

ine

or

earnings.

with

risks

export

Long Range View of the

transpose those facts into

of sales

affiliated

covered, with some The First Cleveland
Corporation,
slight variations, are political—
National Citv East sixth
war, revolution, etc.; commercial
y
Sixth Building,
—-insolvency of buyer or failure to members of the Midwest Stock
pay economic — exchange restric- Exchange,
of

A

Now for a look at the long rangepicture of the industry, for to me
1946, when mills operated at about that is the important one. I have
95%
capacity, profits on sales already pointed out to you the*
after taxes were 8.5% while in steady growth trend that has Ex1949, when operating ratios were isted for many years and I also*

CLEVELAND, Ohio

tions and embargoes, cancellation

I see them but I will leave it to lems imay arise will be overcome,-

but

States industries."

the

-

prob—

whatever

daily,

en-

With Goodbody & Co.

for

ready under way and with industry
scientists
working
on
the

j am>

development in other countries of
enterprises competitive to United

extended

an invitation to go
iimb. I am attempt-

our

import licenses, or
imposition of export restrictions.

be

not

but
on a

they have

after

is

ouj;

dislodge

With First Cleveland

Scott

way

markets,

(Special to The Financial Chronicle)

W.

I know. Secondly, and more im- lands and employ 1,133 technical
Portant> forecasting earnings is foresters. With these activities al-

cheated, ing to give you the basic facts as problem

trenched themselves.

is maintained

by major countries
including
Belgium,
Canada,
France, Germany, Great Britain,
Japan, Italy, Holland, Sweden and

es-

nothing

government

act

rather

Foreign Countries

is

Exnort-Imnort
,

we

and

obtain

Whether
tablished

credit insurance agency is

&

activities of the Ex¬

the

port-Import Bank be concentrated
the financing of exports from
the United States and imports into
the United States through loans

cial

30>
1953
The loss

amounted to $219,076.
following recommen^ray0 js jess than one-hundredth of

the

*<m

cannot

June

Qn

1—

dations:

"That

default

in-

creased
not

drain

may

have in-

since that time, it would

change the relative positions

justified and if the industry is to
keep just a shade ahead of it,

Company, 89 State Street
to any great extent. In that period it should, then we are going to
was formerly with Kine Mer
lumber used 49.1%, firewood and require your help.There ars¬
the
about by
was formerly with King Mer- fence DOsts 161% and puiDWood very, very few companies who
competition from other countries, ritt & Co. and Edward E. Mathews 9.6%. it is interesting to note that can hope to finance a doubling
The competition in credit terms Co.
'
- losses from fire,' insects and dis- of capacity in the next 20 years

'CorP«oratloj1» 1S £o
credit terms brought

m0nt &

He

Number 5334... The Commercial and Financial Chronicle

[Volume 179

out

of

the

stockholder

earnings.

Anthony and

That is, not if
is

receive

to

vation for

his

just dividends, not if Uncle Sam

clearly

continues to take his 52% and not
if depreciation is maintained on

cause

the

Company: "Obser¬
fifty years shows
the consumption of

over

(2693)

slower rate of
recent

gain than in

some

years.

In

general, we face the future

with

for

have the flexibil-

we know we

ity and vitality to meet the chang-

great confidence in our in-

of

do

present

unrealistic

basis.

have to tell you

not

our

industry

requires heavy capital
investment.
It
appears
to me,

National

therefore, that here is

down with

an

ity,

T.

economist

for

and

per

the

American

has

from

Pa¬

industry

No Serious Economic
be put

to work lend greater sta-

bility in today's market.
I have been recently informed

by

of our larger members of
York Stock Exchange

one

the

New

than 20% of today's

more

transactions

stocks

in

represent

speculative ventures.
We have

Transformations in
The Tobacco
to pay for them.
As dollars have
become
more
available, import

joined

restrictions and

ments

have

We

leaf
over

ers,

is

one

that

and

years

prime

export

of the

concern

Corporation and the
partment of Agriculture.

Unfortunately,
is

cern

felt

tobacco in
as

about

of

mental

would

surely be

in the

na¬

disbursed

and

only

in the form

other

half

have

meant

7,600,000

You

and the

such

tute,
tute,

the

We

amount

same

still

would

have

been

interested

are

leaf

of

exported.

in

this

tion,

mar¬

United

stage of

market

because

President

with
the

domestic

but also

should

States

is

Insti¬

Insti¬
Steel

back

stems

Railroads,

etc.

to the court de¬

1911

of

dissolving the origi¬
nal American Tobacco Co. and, in
general, forbidding the component
results from meeting for any pur¬

this

at

American

of

cree

that

economic history,

our

of

American Petroleum
American Iron and

This

agree

Eisenhower

aware

Committee

this

the American Meat

as

tion

situa¬

we

that

Institute, Aircraft Industries As¬
sociation, Licensed Beverage In¬
dustries, Automobile Manufactur¬
ers
Association, and the Associa¬

ket, not only because of the bal¬
ance it gives us in relation to the
complex

undoubtedly

are

en¬

deavor to obtain the soundest pos¬
sible level of international trade

whatsoever.

and that it is the direct

Unfortunately,
present pro bono publico
activities, we have received very
little cooperation from the gov¬
ernment. As in our industry situ¬
ation with taxes, exports and other

bility

regulatory

and the

most efficient

capital and
believe
world

use

in

the

pose

in

our

We further

resources.

peace

of

achievement

of

through world trade,

responsi¬
rather
than

matters,

seriously urge, there¬

fore, the government to examine
its policies in regard to our 'in¬

ment—that has the greatest finan¬
cial interest of all in this industry.

dustry and to examine whether it
could not take steps to mutually

figures

benefit

eral

government,
trade.

our

We

our

carry

this

on

friends

overseas

At this

and

citizens.

own

At

to

sent about 10% of

business.

Morris

entire

total

Philip

dollar

avail¬

our

As

studying the possibility of
increase

recall the

earlier—Fed¬

excise

abroad.

of

ap¬

on

taxes

and
the

on

of

those

five

only $118,000,000,

manu¬

intend

We

industry;
taxes

come

15

to

the

the

in¬
major

Federal
five

to

a

companies of

ratio of about

1.

program

that freer tobacco imports are al¬

current

our

is devoted to the

take

must

we

that approximately 4,000,000 babies are
born
each
year
in the United
States
and only about 1,200,000
persons

the

of

fact

die.

300,000

immigrants come into our country each
year.
Thus we are having a popApproximately

ulation

increase

on

graduated

a

basis, and by 1965 we should have
a population of 200,000,000 people
who

clothed

be

must

40,000,000

fed—

and

opportunities for

more

salesmanship.

in Jine
every

witjh

souad

,our purpose

*

t»

Bu.yingi

Power

in

power

hands is tremendous.

During the

rate of $249 billion,

of

a

to

actually ahead
What a challenge

ago.

year

salesmanship!
addition to the flow

In

of

cur-

rent

income, there is a net backlog of liquid assets at the disposal
of our

Such

for

economic

abnormal

ditions

as

than

more

not the kind

decade

a

con-

experienced

have

we

now

are

America

that made

It was the powerful drive

great.

free enterprise
environment which brought economic progress — brought newer
and better things for more peoof competition in

a

pie; stimulated efficiency; reduced
of production and brought
lower prices
to
the consumer;
raised our standard of living to
the highest the world has ever

costs

known.
Peace

real

and

prosperity

are

not

only compatible, but peace is
absolutely necessary to genuine

have no

should

We

faith

in

Reve that

we

in

except

0us

America

be-

prosper-

Our

war.

ito

as

cannot be

with

country

amount *of

able

i

see

capital

business

economic progress,

needed for
no

for

reason

serious

a

and I am convinced
that we can depend upon our sales
executives
and
their
traveling
staffs to direct us to the economic

savings and

Savings Bonds,

loan

ate

immedi-

future,

shares, and insurance reserves.
For approximately a decade and
a half,
the United States has not
maintained
her
public works

to scale.

standards.

—

Because

de-

and

war

must

we

dollars

billions

spend

now

destined

———

,,

,

streets, sanitary sewers, and
police and fire protection in order

Although dwelling construction
has boomed for several years, au-

thoritative estimates indicate that
a

minimum

lion

units

built

of

maintain

than

more

Rise in

Family Income

our

and

now

a

eliminate

present housing

half

least

at

to

sup-

of

our

preseht substandard housing.
Ahead of us are vast possibilifor

ties
say
and

better

living.

Scientists

that in the fields of elctronics
atomic

countless
time

alone

energy

new

things

use—some

others

for

A

are

peace-

already for proon
the drawing

board.

Philip

;

wholesome

President Eisenhower appointed
Chairman of his Council of Economic Advisers,
Real Income

mil-

1960

ply, to provide standard housing
for our growing population, and
to

cant results. Dr. Fabricant has recently succeeded Dr. Burns, whom

balance

between

Increased at

Uneven Rate

have to be

year will

a

between

The rate of increase

ated

in

cigarette packaging in 20

had

are studying
foreign markets where we

either grant licenses or manu¬

rate

ourselves.,

third

_

element

policy today is

The

-J

_

of

our

our

most

in the filter

approach
men¬

mediately

tioned

care¬

brand

our

relations

as

well

sumer

industry
as

on

market.




public

the

con-

has

on our

of

the

Parlia¬

,

cigarette business im¬

with

name.

Parliaments

fully evaluate the effects of this
on

say,

prosperity tended to spoil us
ways.
We enjoyed an

many

easy sellers' market.
Many of our
salesmen
became
order-takers,
Some of them lost the art of true

acquisition

to the health factor which I

problem

happy to

am

salutary effect

curve.

ment brand of cigarette placed us

corpo¬

previously. One must

I

move.
a

sa1eis

years.

an

established

Despite the fact that
are

having

more com¬

salesmanship.
When

demand

exceeded supply

—when the market would take almost

was

amount

any

clamored

for

directed

more,

offered and
attention

our

mostly toward pro-

petition now than at any time in
its history, they are still moving

ducing and getting things to sell,
The hustle and bustle was in the

ahead,

production

although

naturally

at

a

line

—

and

there

we

to

tion.

man-hours

more

of the popula¬

A growing proportion of

the

population has entered the labor

clined,

and

markedly

recent

more

years.

so in the
Apparently

total of hours of work put in

the

by the labor force as a whole haS"
not changed much in relation iethe population.
Striking gains, however, have
been registered in productive efi'ifiency, that is, in the output ob¬
tained from a given volume of re¬

Indeed, Dr. Fabricant
"the major source of CQX*
Itfvanee has been a
vastly improved efficiency." Com¬
bining labor and capital on the
sources.

states,

economic

basis

relative

their

of

cost,

real

arrives at a

National Bureau

the

which can be
output. "With a

"unit of total input"

with

compared

given dose of labor and tangible
capital," writes Dr. Fabricant, "we
havel earned to produce a larger

come

been

per

far

been

booms

capita

from

has,

even,

influenced
and

productivity, though it has varied
from time to time, shows no ten¬
dency to slow down. Moreover, it
has been found in virtually every

industry

industrial

or

This

studied.

group
how

reveals

fact

widespread is the spirit of enter¬
prise fundamental to the increase
in productivity.
Dr.
Fabricant
notes,
further,
that in many industries increase
productivity

accompanied

was

show

studies

that

increased

pro¬

ductivity frequently leads to low¬
er
prices and greater volume of
output, and thus to greater em¬
ployment.
The report comments also on
how the gains from productivity?
have been distributed. Apparently
labor
in the broad sense of all
«

—

in real in-

of

course,

since it has

by

depressions.

recurrent
The ex-

pansions have shown average annual increases of about 6.5% in

capita income; the contractions have been marked by decreases of about 4.5% a year. The
1.9% average annual increase in
per

the eight decades is the net de¬
ference between
these figures,
The National Bureau has found
some
indications that economic

supply and demand has been developing since the end
of the

in

This

A

are

Open Pack, the first improvement

export position--we

facture

We

attributed

of work per head

by rising rather than falling em¬
ployment.
The National Bureau

ways,

to catch up.

be

in

i

Continued from page. 11

of

schools, hospitals, high¬

on

that America is

heights

fense had to take top priority, we
fell behind to such an extent that

higher than in 192&

Little of the gain in income can

abundant

economic recession in the

This is in
deposits, U. S.

be little

now

and larger volume of goods for
natural
consumption and investment; out¬
wealth; the best labor force in the
put per unit of input has risen,
world; the most advanced tech- somewhat
under
fourfold,
or
nology;
unequalled
managerial about 1.7% a year on the aver¬
ability; and a financial structure age" during the past 80 years.
capable of providing any conceivThis improvement in national

blessed

is

the

bank

capital for growth in income, the
national income per capita would

force, particularly in the earlier
part of the 80-year period, but
hours of work per man have de¬

manship rather than buymanship.

less than $300 billion.
of

to depend solely on increase
the
quantity of
productive

it is necessary to accentuate sales-

people in the amount of not

form

had

looked

little

consumer

quarter of this year, disposable personal income was at the

our

other
can

picture.

according to its purchasing
in 1929. If the people had

power

In fact it is much larger.

prices.

sheet

patience with those who have so

Ti

first

use

to

to.increase

means

product

person

The profit and loss
good despite loose
spending habits that steadily crept
into industry as it rushed to catch
up with demand.
We now recognize that under present conditions

ing

growth in jthis country has been
lowed in England. We are form¬ advancing our research and de¬
characterized not only by the
ing an Australian company which velopment work in the belief that Korean war. It is wholesome be- short swings of the business cycle
will have about 30% Australian product and packaging are always cause it means the return of combut by longer swings of about 20
capital. According to present plans subject to review and improve¬ petition—and competition is good years' duration in each of which
this company-will be in produc¬ ment. An example of this was the for us all.
there was a shift from less rapid
tion by the end of this year. And
recent introduction of the Snap
The lush years of war-gener- to more rapid growth and back
Morris

occurred before
Depression of the 1930s.
During the depression and again
per

in

became

spoiled too,
in an
inflation-market our managerial
mistakes were covered up bv riswere

prosperity.

^

Consumer Buying

duction,

A fourth element of

activity of our Lon¬
subsidiary,
especially
now

don

seem

reporting
companies of
around
$170,000,000—as against the net in¬

but tariff and
other restrictions continue, we are
facturing

you may

I presented

tobacco

come

increases,

ability

point

we

proximately $1,600,000,000

present, export sales repre¬

future,

our

to
derive our least support from the
one
party—the Federal Govern¬

business,

of

a

cognizance

will be

operating under handicaps not im¬
posed on other industry groupings

additional

and

one can ques¬

the

about

under their- supervision

fact

hours of work for Americans

man

ap¬

population of around
162,000,000 people—good American
people accustomed to having
more goods and services than any
other people in the world.
That
is about 40,000,000 people more
than we had in 1929.
In thinking

hope the work of TIRC

we

the

leaf, it would

raw

No

be

A

only in
research, but in liaison between
industry and the scientific world.

half that export

of cigarettes

in

will

be

will open new vistas, not

States exported 516,000,000 pounds
of raw leaf.
Had the government

encouraged

Director

quate funds for research

leaf. Last year the United

raw

Board will
time to time.

pointed shortly.

tional interest to export the man¬
ufactured cigarette, rather than
the

which

tion the integrity and impartiality
of these scientists. More than ade¬

It

more

Scientific Advis¬

a

from

Scientific

funda¬

a

demand.

Board of eminently qualified

enlarged

Departments of

product with

a

Industry Re¬

appointed

scientists,

that

I wonder about the

worldwide

grow¬

ory

Commerce, Labor and State in the

Export

and

practically all—since
major manufacturer is not in)
say

has
con¬

exporting

disinterest of the

(I

to form the Tobacco

its manufactured form

cigarettes.

practically all ele¬
industry, manufac¬

the

search Committee. The Committee

De¬

similar

no

a

Commodity

Credit

with
of

turers, warehousemen

exported

country for

tobacco from this

300

Therefore, Philip Morris has

controls have in¬

that

the Great

years

Recession in Prospect

that not

Continued from page 14

however,

gain in tangible cap¬

capital declined while population
on growing.
Rapid increase
in the postwar years has largely
gone into offsetting the previous
decline. Capital is measured in all

16

page

been

and this factor
continues to operate."
To this,
may I add the words "stability"
and "financial respectability."

Association
and
economist for Tucker,

creased.

ital

conditions in our market and
economy today.

noteworthy,

kept

established fact
the bottom of

slowdown

such

growth

Pulp

presently

past,

higher than the next previous one.
The
industry is undoubtedly a

formerly

Stevenson,

well

is

most of the

during World War II the total of

Continued

while

that

and

dustry and in our own company,

general business activ¬

a

the

in

each

conclude by quoting Dr.

me

Product

it is

that

both.
Let

be¬

States

development

this growth in consumption slows

oppor¬

tunity for you to further your
partnership with us, a relation¬
ship that should be beneficial to

Louis

United

the

of the constant

new uses, grows faster than the
population, faster than the Gross

I

that

that
in

paper

It

41

again.

work—has

those who are paid for

from the rise in na¬
tional productivity than have the
recipients of property incomes—
rent, interest, and profits. Workers
"have enjoyed an increase in:
gained

more

income

return—real

of

rate

per

than the in¬
crease
in total productivity. For
workers have gained in two ways:
hour—greater

they
of

the

them

of

of

because

gained

have

fruits

even

the

reached

have

economy

the

efficiency

increased

(as they have other agents

production);

and

they

have

gained, further, because the price
of their work relative to the price
of

capital

has

turned

in

favor with the increase in
of

their

amount

capital per worker."
New

Studies Are

Announced

reported that the
Bureau has undertaken-

Dr. Fabricant

National

a new major investigation of the
Sources of Increase in Income
The increase in income has re- structure of world trade and pay¬
ments.
Another new study is a
suited in part from the growth of
the capital and the labor put into review of the economic 'growth
production, and in part from the of Soviet Russia. At the sugges¬
tion of the Council of Economic
gains in efficiency with which
Advisers, the National Bureau has
capital and labor are employed,
The nation's tangible wealth or also begun new studies in the ap¬
capital has risen during the past plication of its research findings
to
the
problem
of forecasting
eight decades several times more
rapidly than the population, and changes in the business cycle. Still

this has been a significant

in increasing the national

factor

income.

with trends
productivity.

another is concerned
in wages and

42

(2694)

The Commercial and Financial Chronicle

Securities

American-Canadian Oil & Drilling Corp.

•

each

Price

June
of

■
,

,

11

filed

160,000 shares of common stock (par $1),
100,000 shares are to be sold for account of

which

the company and 60,000 shares for

certain selling stock¬
holders. Price—To be supplied by amendment. Proceeds
—To

bank loans and for general corporate pur¬
poses.
Underwriters — Van Alstyne, Noel & Co., New
York, and Crowell, Weedon & Co., Los Angeles, Calif.
repay

'

American Transportation Insurance Co.,
Kansas City, Mo.

Price—$150

11

shares

the

basis

of

one

share

new

Rodman

rights to expire on June 29.
share. Proceeds
From sale of

per

construction.

new

share.
Underwriter—None.

it Arden Farms Co., Los Angeles, Calif.
11 filed 32,669 shares of $3 cumulative and par¬
ticipating preferred stock (no par value) and 52,876

at

be

received

to

up

11

a.m.

shares

of

stock

common

(par $1), the preferred shares

to

be offered for subscription to holders of presently
outstanding preferred stock on 1-for-10 basis, and the
stockholders to have right to subscribe for the

common
new

common

supplied
loans.

by

stock

on

-.1-for-10

amendment.

basis.

Proceeds

a

—

Price—To

To

reduce

be

bank

Underwriter—None.

Artesian Water Co.,

Newport, Del.

-$Iay 12 (letter of notification) 5,467 shares of cla.4s A
non-voting
for

each

stock (no par) being offered first to

common

stockholders
two

of

record

shares

June

1

on

basis

of

held; rights to expire

one

on

share

June 30.

Price—To stockholders, $18 per share; and to public, $20
per share. Proceeds—To improve and expand water dis¬
tribution system. Office—501
Newport & Gap Pike,

June

Newport, Del. Underwriter
Wilmington, Del.
Basin
Dec. 23

Natural

—

Laird, Bissell & Meeds,

/;

;/

Cherokee

Corp., Santa Fe, N. Mex.
(letter of notification) 748,000 shares of commoi

Underwriter—Hunter Securitiei

May 18
stock.

(letter of notification) 5,000 shares of

Price—At market

(estimated at $8.87V2

it Brager-Eisenberg, Inc., Baltimore, Md.
June 3 (letter of notification)
$281,430 of 15-year 5%
cumulative
due

July
standing

NEW

subordinated

15,

notes dated July 15, 1954 and
1969, to be offered in exchange for out¬

common

stock

at the

rate

of

one

each share. Office—Eutaw and
Saratoga
Md. Underwriter—None.

it Bulfard Co., Bridgeport, Conn.
June 15 filed

121,440 shares of

July 7

on

'

June

stock

(Bids

//Z;:,.7/ '

for each

of

(Bids

Gulf

2.5

shares held. Price—To be
sup¬
Proceeds—For payment of notes
and accounts payable and for
working capital. Under¬
writers—Dallas Rupe & Son, Dallas,
Tex., and Straus,
Blosser
&
McDowell, Chicago, 111. (latter handling-

—

and,

with proceeds from
proposed
first mortgage

—

&

(letter of notification) 7,500 shares
(par $2.50). Price—$7.25 per share.
To a selling stockholder. Office-^70
Summit
lyn 31, N. Y. Underwriter—Gammack &
Co.,

a.m.

22

Co.)

EDT)

filed

$50,000,000 of first

sh.).

conditions.

No

Washington

&

Co.,

11:30

y

June 23

(Bids

Beane;

Lynch

Eastern

Peabody

;

$5,000,000

and

Carl

M.

Merrill

tth'oadeS

Loeb,

&

common^

Rothchild

H.

/

(Dallas
.

Rupe

Oil

Pierce, TFenner

\

Richards &

Co.

and

&

29

&

•

Boston

Philadelphia
'

Pittsburgh

San Francisco




Cleveland

Eastern

to

all

offices

(Bids

Utilities

(Offering
will

i

Private Wires

Chicago

to
be

Public Service

11

about

286,027

(Offering
&

to

Co.,

(Blyth

&

R.

Staats

&

1

Z

.

7"/,.';

•

' ■"/

7

Pierce,

be

?

>

Fenner

and

underwritten

by

Beane; Horn*
Weld & Co.)

White,

>

y

&

*

shares;'

The

First

Langley' &

be

underwritten

Boston

Co.)

Corp.

690,062

Minneapolis, St. Paul & Sault

and

by
W.

shares ''

Blyth

y

C.»-

/

-/-',

Ste. Marie

-/t

;

.

-

-

___—[.Equip. Trust Ctfs.
(Bids

,

CST)

noon

■

,

$1,950,000

Missouri Power & Light Co.,
Gas

to

be

Improvement

Dillonv

(Probably

Dillon,

Co.)

Inc.)

$15,000,000

••

Bonds

r

/..Preferred

>

(Wednesday)

Gas
Read

Co.'___
&

Co.

Inc.)

$30,000,000

Read

&

Co.

Inc.)

$11,000,000

■

July 26
Boston Edison

1

.

/:

y
>

■

(Monday)

,

Co

(Bids

Bonds
to

be

invited)

$18,000,000

.

•

August 9
.

1
■,

95,000 shs.

.

;

•

$10,000,000

'

(Monday)

Pacific Power & Light Co
(Bids

.

-

'

$475,000

$16,000,000

•

Bonds

Colorado Interstate Gas Co
*

(Tuesday)
EDT)

$7,500,000 '•*-

Co

EDT)

noon

July 21

__r...Bonds

invited)

shs.

Common'

Indiana, Inc

Co.,

A

& McDowell)

(Wednesday)

stockholders—to

Inc.;

;

y

(Probably

to be

Common

stockholders—Kidder, Peabody &
dealer-manager) 82,451 shares
of

"

/

Long Island Lighting Co..u-r.--__---/____Commoii

Common

$40,000,000

Co.)

Asssociates

Co.

'

121,440

United

Bonds
a.m.

/

Weedon

7—.

-

Weeks;

(Bids

—Debentures

EDT)

&

Crowell,

shares.

stockholders—to

Lynch,

and

Duquesne Light Co
New York.

and

Common
to

blower

I

June

/..Common

Co.

160,000

[y
7";.,

Common

Rice

&

RR.

.Preferred

Western Plains Oil & Gas Co.
(Irving J.

■

/

;:

(Tuesday)

(Friday)'

William

Common

$50,000

July 13 (Tuesday)

Telecomputing Corp.
(Hill

7';.,'..;
...

Co.

; Merrill

(Monday)

a.m.

■

and

v/;-'':-- July 7

Common

System, Inc
11:30

v-.Z

v ■ y.

../.Class

Colorado Interstate

(Bids

r

*

Straus. Blosser
260,000' 'shares '
'

.

>

Bolger

.

Co H$600,000

&

(Offering to stockholders—no underwriting)

Columbia Gas

Shillinglaw,

(Thursday)

Co.)

Sons

/

(Offering

$35,000,000

Merritt-Chapman & Scott Corp
28

and

Ventures, Inc

Noel

(Bids

June

Co.

July 6

&

New York.

-

V

..Comnion

■/"

Alstyne,

'':v' i.•

-

•

Lyncn, Pierce, Fenner & Beane
Kidder, Peabody & Co.) $2,000,000

25

&

v

245,000 shares

Byrd Oil Corp
~

K

Debentures

(Merrill

June

/'

/

Common

EDT)

Co.) 400,000 shares
."/\"/
'

•

>

/—Preferred

June 24 (Thursday)
Maine Public Service Co
i-l.-...

St.; Brook¬

Eberstadt
&

•

shares

Preferred

$3,000,000

Corp., Inc

■

"•

Bullard

,

Co.)

a.m.

(•Tellier & Co.)

$6,b00,000

Lynch,

a.m. EDT)

July 1

___Bonds
'

■

Pipe Line Co,

Co.;

&

■

11

Williston Basin

1

...

■

i

/Common

Light Co....

&

Transportation Development Corp

Proceeds—

(F.
v

-Preferred

ISDT)

■■■

(Wednesday)

■AmerieBri Electronics, Inc

(Wednesday)

a.m.

'

Florida Power & Light Co

"

Panhandle
(Kidder,

11

/yy;

Pierce, Fencer & Beane) 577,551

$147,500

Duquesne Light Co.i.

Z

(Bids 11

Bonds

"

together

\,

7/

.

4

7

$10,000,000

EDT)

set.

CALENDAR

//y

Inc.). $25,000,000

a.m.,

Under¬

7*

Gas Light Co....
(Bids

date

new

Fairchild Engine & Airplane
Corp..

Common

Co.)

$25,000,000 West¬

Co.; The First Boston Corp.
Offering—Originally set
May 11, but has been postponed because of market

(Van

Gleich

>

refunding mort¬

for

./..Preferred

_

Z

J.

Conine.; Morgan Stanley

^

$25,000,000

EDT)

and

Co/; general mortgage bonds.

(Tuesday)

a.m.

program.

'
-

Steam Corp. first
mortgage bonds and
chester Lighting

Z

$2,500,000

J'//

bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York

&

$80th006 7

construction

'" v

;

gage

Bonds

(Blyth

t

of

April 7

..Bonds

Pacific Gas & Electric Co

(L.

8

11

(D.

Co., Inc.

stock

■

.

$4,000,000

King Copper Mining Corp.

Offering—Tem¬

porarily deferred.
June

Merrill

V-

.

Common

Weld

(Bids 11

issue of $8,000,000 of new
bonds, to redeem $8,000,000 3%% bondl

presently
outstanding.
Underwriter
Pierce, Fenner & Beane, New York.

■/

Sutton (O. A.)

Power Co

books).

&

EDT)

For

—

'

(Monday)

a.m.

June

one

California Electric Power Co.
April 22 filed 105,000 shares of cumulative
preferred
stock (par $50). Price—To be
supplied by amendment
-Proceeds
To redeem
two issues of $2.50
preferred
/ stock (par $50), totaling
98,800 shares,,

per share. Proceeds
Underwriter—None.

(Merrill Lynch,

Tennessee Gas Transmission Co..

plied by amendment.

Carman

11

(White,

cumulative converti¬

rate

1, 1954, in the ratio of One new share for each
held; rights will expire on June 29. Price—

$14

$760,000

(Van Alstyne, Noel & Co.)

.

(par $7.50) to be offered for

^Ttew share

Brothers)

;v-:''Z/Z -yZ

shares

June 30

Inter-Canadian Corp.

it Byrd Oil Corp., Dallas, Texas

at

June

10

Florida Power &

Continental Commercial Corp..
;v":;

—

stockholders

Co.

p.m.

on

ISSUE

Central Vermont Public Service
Corp

—

common

&

Connecticut Light & Power Co.

(Friday)

June 21

stock, together with funds from private sale of $2,000,000
of 15-year
notes, to be used mainly to finance the build¬
ing of a new foundry. Underwriters
Merrill Lynch,
Pierce, Fenner & Beane, Hornblower & Weeks and
White, Weld & Co., all of New York.

by

of sinking fund debentures,
Proceeds—To repay bank loans and
construction. Underwriter—To be determined

(Bids

five shares held; rights to expire on
July 21. Price—To
be supplied by amendment.
Proceeds
From sale of

subscription

•

United States Sulphur & Chemical Corp...Common
(Vickers

:Z/Z;,

(6/23)

$40,000,000

(Thursday)

18

Inc.

May 25 filed 590,290 shares of common stock
(no parstated value $10.0625 per
share), being offered for sub¬
scription by commoin stockholders of record at 3

CDT) $7,350,000

noon

com¬

.

Chicago, Burlington & Quincy RR.-Equip. Tr. Ctfs.
(Bids

(par $10)
by common stockholders
the basis of one new share for each

June 15 filed 260,000 shares of 6%
ble class A common stock

June 17

„

$30 note for

Sts., Baltimore,

to be offered for subscription
of record

•

-

writer—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart &

common

per

V

due 1979.

■vst'

i.

(7/7)

common

/ /

Chicago, Aurora & Elgin Ry., Wheaton, III.

itock

(par five cents). Price—40 cents per share. Pro¬
ceeds—To acquire properties and leases. Office — Blatt

/>;

•

Turner,

Consol. Edison Co. ol New
York, Inc.

May 10 filed 5,000,000 shares of class B
non-voting com¬
stock (par 1 cent).
Price—$1 per share. Proceeds—
For construction,
operating expenses and working capi¬
.

&

bidding.
Probable
bidders:
Halsey,
Inc.; Morgan Stanley & Co. Bids—Ex¬
pected to be received up to 11:30 a.m.
(EDT) on June
28.
;,Z•

Industries, Inc., Oklahoma City, Okla.

.

Guerin

competitive

of New York City.

Underwriter—None.

filed

new

Stuart

mon

tal.

Gas

Bldg., Santa Fe, N. M.
Corp., New York.

Co.,4 Inc. and D. Gleich Co., both

7

series D,
for

by

&

Eppler,

ZZyZZ;'/

company's office in Boston, Mass.

Charge-It Systems, Inc.
May 24 (letter of notification) 230,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital and used to reduce
current bor¬
rowings and to extend operations. Office—60 East 42nd
St., New York, N. Y. Underwriters—Milton D. Blauner

and

Columbia Gas
System,

June

Century Acceptance Corp.
May 27 (letter of notification) 58,000 shares of class A
common stock
(par $1). Price—$5 per share. Proceeds
—For working capital. Office—1334 Oak
Street, Kansas
City 6, Mo. Underwriter—Paul C. Kimball &
Co., Chi¬
cago, 111.
: V

Tex.,

mon
stock (par one
cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—107 :N.
Turner,
HobbS, N. MexA; Underwriter—J. W. Hicks &
Co., Inc.,
Denver, Colo.

June 21

on

Inc., Jacksonville, Tex.

Inc., Hobbs, N. M.
May 27 (letter of nptificafioi^>/ ^0J0,<)00 sbares.
of

Underwriter—

(EDT)

Stores,

Colotah Uranium
Co.,

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.; W. C. Langley & Co. and
Hemphill, Noyes & Co. (jointly); Baxter, Williams & Co.
Bids—To

Food

& Co.,
Houston,
Dallas, Tex. '

Underwriter

Central

bank loans and for

C.

(letter of notification) 5,000 shares of class A
common stock (no par).
Price—$13 per share. Proceeds
—For working capital.
Underwriter—Moroney, Beissner

Vermont Public Service
Corp. (6/21)
May 28 filed $4,000,000 first mortgage bonds, series E,
due June 1, 1984; Proceeds—To redeem
$1,956,000 series
I 3%% bonds, and $797,000 series J
3%% bonds, to re¬
pay

REVISED

,

April 26

—

tal, and other general corporate purposes.
—Goldman, Sachs & Co., New York.

-

ISSUE

Nagels, President. UnderwriterRenshaw, Chicago, 111.

&

Childs

for

held;

$29.50

—

on

To be determined

capital stock (par $100).
Proceeds — To increase capital

per

10

June

ders:

March 17 filed 20,000 shares of
and surplus.

record

Earl

PREVIOUS

ITEMS

•

Proceeds—To

stock, together with $6,000,000 from long-term borrow¬
ings, to be used to pay for expansion, for working capi¬

it American Electronics, Inc., Los Angeles,
(7/6-7)

of

AD DITION S

SINCE

Soya Co., Inc., Ft. Wayne, Ind.
May 27 filed 99,000 shares of common stock (no par)
being offered for subscription by common stockholders

Tex. Underwriter—None.

Calif.

Registration

Central

May 12 filed 1,500,000 shares of common stock. Price—
At par ($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
and exploration, and related activities.
Office—Dallas,

Thursday, June 17, 1954

it IN DICATES

in

Now

...

^.Bonds

invited) $30,000,000

Co.

Preferred

August 24

(Tuesday)

Arkansas Power & Light Co
(Bids

to

be

invited)

Bonds
$7,500,000

-

Volume

179

Number 5334... The Commercial and Financial Chronicle

(2695)

Consumers Power Co.

^ ff

....

May

6

1984.

Price—To be not less favorable to

3%%

filed

$25,000,000

basis/

atnount

of

of

first

Proceeds—To

redeem

3%%

outstanding

mortgage

stock;

company than a
105.25% a tike

at

bonds

Family Digest, Inc. April 9 (letter of notification)

due

bonds

due

1983.

Writer—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co.. Inc.; Morgan Stanley

.

.

Fund.

(6/21-24)

Underwriter

Van

—

Florida Power & Light Co.

^ Cordillera Corp., Seattle, Wash.
(letter of notification) 300,000 shares of common
stock.
Price—$1 per share. Proceeds—For mining ex¬
penses.
Office — 902 Seaboard Bldg., Seattle, Wash.

'

,

for

£ Cornbelt Insurance Co., Freeport, III.

Florida

shares of

stock

common

debentures

6%

(par 10 cents)

and

375,000

to be offered in
.

~$100
'

'
•

a

►"'J

unit. Proceeds—For additions and improve¬
1,
V':

per

Underwriter—None.

'

'

•'

'

'

*

' '

•

..

1

'

£•'

'•

•'*»

(par 10

filed 954,474 Shares
of^capifdl stock (par 50
being offered in exchange for Universal" Pictures
Inc., common stock on the basis Of%2*4 shares,

stock, with

344,338

shares

in

hands

Also, there

tfie

purchase

$10

per

of

share

79,873

held

of

approximately
warrants

were

shares

by

of

others

1,783

Universal

than

other

outstanding for
stock

Decca,

and

at
any

Universal stock acquired upon exercise of such warrants
may be tendered for
exchange. Offer will expire on
JGne 30. Soliciting
Agent—Georgeson &

Co., New York.

Duquesne Light Co. (6/23)
May 26 filed 120,000 shares of preferred stock (par $50).
_

Proceeds—For construction program. Underwriters—To
be determined by competitive
bidding. Probable bidders:
The First Boston Corp.; Lehman
Brothers; Blyth &

Inc.;

Kidder,

Co.,
Co.* Merrill Lynch, Pierce,
White, Weld & Co. (jointly); Kuhn,
Smith, Barney & Co. (jointly). Bids—

Peabody

&

Fenner & Beane and
Loeb &

be

To

Co. and

received

Broad

up

to

11

a.m.

(EDT)

June 23 at 15

on

St., New York 5, N. Y.

'

Duquesne Light Co. (6/29)
May 26 filed $16,000,000 of first mortgage bonds due
Jtily 1, 1984. Proceeds—For construction program. Un¬
derwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Glore, Forgan & Co.;
Kuhn, Loeb & Co.,
Union Securities Corp. and A. C.
Allyn & Co., Inc.
(jointly); White, Weld & Co.; Drexel & Co. and Equit¬
able Securities Corp. (jointly); Harriman
Ripley & Co.
Inc.

Bids—To be received up to 11 a.m.
29 at 15 Broad St., New York
5, N. Y.

"on

(EDT)
^

on

Bids—To be received

up

Office—100 West 10th Street,

Wilmington, Del. Un¬
Mass.

derwriter—Sheehan & Co., Boston,
General Credit
:

Corp./Miami, Fla.

March 25

(letter of notification) 74,990 shares of capital
stock (par $1).,Price—$4 per share. Proceeds—For work¬
ing capital. Office—799 N. W. 62nd Street, Miami', Fla.

Underwriter—Murphy

Co..

&

Fla.

Miami,

stock

(par $5)

ket

be offered

to

value

the

on

the

day

Underwriter—None.

key

to

shares of

common

employees

option

therefor

is

mar¬

granted.

r

Corp., Baton Rouge/La.

Price—$6.50
Office—120

share.

per

Broadway, New York, N. Y. Underwriter—

stock (par $5).
Proceeds
To*
selling stockholders. Underwriter—Kidder,, Peabody &
Co., New York. Offering—Postponed indefinitely.

General Telephone Co. of Kentucky
May 7 filed 46,000 shares of 5% cumulative preferred
stock (par $50), of which 16,000 shares are being offered
in exchange for the 8,000 shares of 5.2%
cumulative
preferred stock outstanding on the basis of two new
shares, plus $4 per share in cash for each 5.2% share
held.
The exchange offer will expire on July 1.
The
remaining 30,000 shares of 5% preferred stock were
offered publicly at par by Paine, Webber, Jackson &
Curtis and Stone & Webster Securities Corp. and asso¬
ciates.

Proceeds—To retire 5.2%

preferred stock, to re¬

the General

Grant

stockholders

■1

basis

on

five shares of
Juhe'

common

or

to

be

used

retire

to

ic Gray Manufacturing Co.,

shares

held

the basis of

one

new

share for each

(with

an
oversubscription privilege);
July 15. Price — To be supplied by
amendment. Proceeds—To pay off $2,000,000 bank loans.

rights to expire

on

due

1957

June

at

;l

100%
--

■

filed

10

be

on

the basis of

offered

be

»:•

and accrued interest.
•

;4. ;;

for

stock.

Price—$1

per" share:

Proceeds—For

equipment
ajnd working capital. Address—P. O. Box 117, Gooding,
Idaho. Underwriter—None, shares to be offered through
officers and directors and through Jennie L. Taylor, 635
N. W.

Second

St:, Ontario;7 Ore.

•

one

new

stock

ver,

stock

1984.

produce and market

fluffed .topping, known

"Sta-Wip/? Offiee—lO High St., Boston, Mass/ Under¬

writer—Hunter
Fairchild
8

filed

offered

of record
each

four

Price—To
additional
eral

Securities*Corp., New York.

Engfne & Airplane Corp.
577,551
for

be

common

subscription by

about June
shares

shares of

29

on

(6/30)
stock

common

basis of

one

(par $1)

stockholders,

new

share for

held; rights to expire about July

supplied

by

amendment.

facilities, machinery and equipment and

corporate purposes.

Underwriter

Pierce, Fenner & Beane, New York.




—

14."

Proceeds—For

share for each four shares held.

Proceeds—For
Underwriter—None.

Merrill Lynch,

each

for

four

shares

held.

on

the

Unsub- *

employees; rights to ex¬
July 19. Price—At par ($20 per share).* Proceeds
—To repay bank loans and for additions and improve¬
on

ments.

Underwriter—May be named by amendment.

Tk Hollywood Angels, Inc.
June 10 (letter of notification) 500,000 shares of com¬
mon
stock (par one cent). Price—50 cents per share.
Proceeds—For working capital. Office—29 West 65th ££3*
New York 23, N. Y. Underwriter—None. Statement will
be withdrawn and refiled.

ir Industrial Hardware Mfgk Co., H. Y.
14 filed 185,000 shares of common stock (par 50*"
cents), of which 106,602 shares are to be offered for
account of company and 78,398 shares for account of
Louis Offerman, Vice-President. Price—To be supplied

June

Proceeds—To

repay

bank loans and pay

Underwriter—Milton D.

New York.

^ Industrial Research, Inc., Miami, Fla.
June 9 (letter of notification) 67,757 shares of common
stock (par 10 cents).
Price—30 cents per share. Pro¬

(par 100).

com¬

Price—150 per share. Proceeds—
Office—704 Equitable Bldg., Den¬

26

filed

Co.

(6/22)

$10,000,000

Inspiration Lead Co., Inc., Wallace, Idaho
May 4 (letter of notification) 2,000,000 shares of class B
stock (with debenture warrants).
Price —15 cents per
share.
Proceeds
For mining development.
Office —
106 King St., Wallace, Idaho.
Underwriter — Mine Fi¬
nancing Inc., West 909 Sprague Ave., Spokane 10, Wash.
—

• Inter-Canadian
Corp., Chicago, III. (6/21-24)
April 19 filed 100,000 shares of common stock (par $1).

Price—$25

4ys%

loans

and

bonds due
new

mortgage bonds due
outstanding first
1983 and for repayment of

construction:

Underwriter—To

be

determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane, Salomon Bros. & Hutzler and Drexel
& Co. fjointly); Equitable Securities Corp.; Union Secu¬
rities Corp. Bids-^-To be received up to 11' a.m. (EST)
on

-

June 22 at 20 Pine St., New York, N. Y.
Gulf States

share.

per

Proceeds—For

venture investment situations in

venture

semi-

or

Canada. Underwriter—

White, Weld & Co., New York.
Jolly Jack Uranium Co., Salt Lake City, Utah
May 24 (letter of notification) 1,160,000 shares of com¬
stock (par 10 cents).
Price — 25 cents per share.
Proceeds
For mining expenses. Office — 620
Judgef\

mon

—

Underwriter

—

Coombs &

Co., Salt Lake City, Utah.
Ketidon Electronics

Co., Inc.
V
(letter of notification) 150,000 shares of conpy
stock (par 40 cents).
Price—25 cents per share.

April 21

Proceeds—For

working

Office —18

purposes.

capital and general corporate
Clinton Street, Brooklyn, N. Y.

Underwriter—20th Century Pioneer Securities

York, N. Y.

Co., New

.

• King Copper Mining Corp; (6/22)
2 (filed under Regulation "D") 295,000 shares of
capital stock (par $1). Price—50 cents per share.
Pro¬
ceeds—For expansion/ diamond drilling, working capital
and general corporate purposes.
Office—1519 Pine Ave.,
West, Montreal, Canada.
Underwriter—D. Gleich Co.,
New

York.

..
..

Continental Hotgl, lii'c.
May 17 filed 500,000 shares of preferred capital stock
(par $9.90) and 500,000 shares of common capital stock
(no par—100 stated value) to be offered in units of one
preferred and one common share. Price—$10 per unit.
Proceeds—To build and operate a luxury hotel and for
working capital.
Office—Las Vegas, Nev.
Underwriter
—Lester L. LaFortune, Las Vegas, Nev.

of first

Proceeds—To refund $6,593,000 of

mortgage
bank

being withdrawn.

Power

obligations. Office—4016 N. W. 29th St.,
Underwriter—None.

Las Vegas

Utilities Co.

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
—

gen¬

share

one

June

Colo. Underwriter—J. W. Hicks & Co., Denver, Colo.

Statement

May

ceeds-^-To

\ /

Hartford, Conn.

Uranium Co.,

For mining expenses.

Gulf

(letter of notification X 500,000 shares of common
(par 10cent's);.- Price—-60 cents per share. -Pro-

Underwriter—

Denver, Colo.
May 10 (letter of notification) 2,000,000 shares of

June 4

be

on

supplied by amendment.

Great Western

mon

^ Essex. Universal Corp.;!; Boston, Mass;'V

to

each

shares of common stock (par $5)
subscription by common stockholders

general corporate purposes.

£ Empire Exploration Ltd., Inc.. Gooding, Idaho
/
June 2 (letter of notification) 200,000 shares of common

June

for

58,119

to

Price—To

Dealer-Manager—Kidder, Peabody & Co., New York.

•

share

stock, together with other funds,
$403,100 of collateral trust bonds

None.

as

one

class A common stock held

of record June 29
12

of

10; rights to expire June 30. Price—$17 per share.

£ Eastern Utilities Associates (6/29)
9 filed 82,451 shares of common stock
(par $19)
to be offered for subscription by common stockholders
on

(6/21)

stock to be offered*

scribed shares to be offered to

pire

mon

.

June

of

Bldg., Salt Lake City, Utah.

Proceeds—From sale of

None.

basis

Miami, Fla.

March 19 filed 100,000 shares of common
Price — To be supplied by amendment.

common

be offered to employees.*
Proceeds—For working capital.

common

ceeds—To pay

General Gas

•

to

Light Co., Ltd., Hilo Hawaii

subscription by stockholders of record June 5

of the

Price—To be the fair

and its affiliates.

company

of

(par $1)

for

Blauner & Co., Inc.,

^ Duro-Test Corp.
(letter of notification) not exceeding 6,500 shares
stock

Electric

by amendment.

Building, Inc., Pittsburgh;
May 21 filed 22,069 shares of common stock (par $1)
being offered for subscription by common and^class A

common

Hilo

May 10 filed 25,000 shares of

taxes, and for working capital.

maximum of 4,200,000

a

;

June 9

-

June 10 filed

pay bank loans ancj to; pay notes due to
Telephone Corp., its parent'.
4 4/4-,-4

-

Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fen¬
& Beane and White, Weld & Co.
(jointly); Salo*
mon Bros. & Hutzler and Union
Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn &
Co., Iric: (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,^
New York, N. Y., but offering has been postponed.

★ General Electric Co.

June
v

Co.

ner

June 30.

(par 10 cents). Price-4$1.50 per share. Proceeds—
inventory, capital expenditures and working capi¬

tal.

10

May

(EDT)«

_

and $10,000,000 of 3%%'
1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &

•

■stock

cents)

stockholders.

11a.m.

For

on

(6/30)'

Utilities Co.

$24,000,000 of first mortgage bonds due
Proceeds—To redeem $10,000,000 of 3%%

common

Gamma Corp., Wilmington, Del.
V
Feb. 2 (letter of notification) 140,000 shares of common

writer-^None.^v:.'J'%,^ »-44/^4

of Decca stock for each Universal share. Decca
1.. owned 672,996 shares (66.2%) of Universal

Light Co.

shares of

1, 1984.

filed

first mortgage bonds due 1981
first mortgage bonds due

determined

bidding. Probable bidders: Lehman Brothers and Blyth
& Co., Inc. (jointly); The First Boston Corp.; Merrill
Lynch, Pierce, Fenner & Beane; Carl M. Loeb, Rhoades
to

4*;0ecdi.ifec&iryy^^^
Co.,

&

;.;&r Co.; Union Securities Corp.

cents). Price—$2 per share. .Proceeds—For'additions and
improvements...Under

May

be

,

is*'

$•'

★ Danaho Refining Co., Houston,^Texas;
June 14 filed. 110,009 shares, of
ieommop. stock

Underwriters—To

"

stock (no par):*
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriters—To be determined by competitive

units of $50 of debentures and 30 shares of stock. Price
ments.

Power

June 8 filed 245,000

& Danaho Refining Co., Houston, Texas
of

construction.

new

14

June

(6/30)

by competitive bidding. Probable bidders: Blyth & Co., .!
Inc. and Lehman Brothers
(jointly); The First Boston
Corp.; White, Weld & Co.; Merrill Lynch, Pierce, Fen¬
ner
& Beane; and Union Securities Corp. Bids—To be
received up to 11 a.m. (EDT) on Juhe 30.

.

$625,000

Gulf States

May

June 8 filed 50,000 shares of cumulative preferred stock,
series D (par $100). Proceeds—To repay bank loans and

March 17 filed 300,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—For investment. Under¬
writer—None.

filed

investment.

Corp., New York
Jan. 29 filed 250,000 shares of 7% cumulative
sinking*
fund preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.

.

JUne 9

14

Proceeds—For

Financial Credit

r^ient. Proceeds—To reduce bank loans and for working v-

JUne

Langley &
(jointly). Bids—Had tentatively been expected to be
up to 11:30'a.m.
(EDT) on June 15 at The*
Hanover Bank, 70 Broadway, New
York, N. Y., but of-,
fering has been postponed.
Co.

received

-

JuneJL filed 80,000 shares of 60-cent convertible pre-/
$10f. Price—/To be supplied by amend- /

Underwriter—None.

Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable Securities Corp.
(jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C.

June

ierred stoek (par

Office — Pittsburgh, Pa.
Alstyne, Noel & Co., New York.

ders:

ir Federated Fund of New England,
Worcester, Mass.
9 filed 100,000 shares of beneficial interest in the

Co.; Kuhn, Loeb & Co., and Union Securities Corp.
(jointly); Harriman Ripley & Co. and The First Boston
Corp. (jointly). Offering—Postponed temporarily.

capital.

be

Hudson

&

-Continental Commercial Corp.

$105, $105, and $105.75, respectively.
Underwriter—To
determined by competitive bidding.
Probable bid¬

142,875 shares of class A

Price—At

par
($1 per share).
Proceeds—For
operating capital and operating expenses. 'Office—421
St.; New York 14, N; Y, Underwriter—Carl J.
Bliedung, Washington. D. C.

Under-=

43

stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of

•

Lily-Tulip Cup Corp.
25 filed 88,000 shares of common stock (no jpar)
being offered for subscription by stockholders of tecord
June 15 on the basis of one new common share for each
May

t

eight shares held; rights to expire June 29. Price—$65

share. Proceeds — For general corporate purposes.
Underwriter—Blyth & Co., Inc., New York.
per

*

Maine

Public

(6/24)

Service Co.

*

^

shares of cumulative preferred stocky
(par $50). Price—To be supplied by amendment. Pro¬
ceeds—To redeem $1,175,140 of 5V2%
preferred stock
filed 40,000

June

1

(par

$20)

and

Merrill Lynch,

to reduce bank loans. Underwriters —
Pierce, Fenner & Beane and Kidder. Pea¬

body & Co., both of New York.

.

Continued

on

vaae

44

.

44

The Commercial and Financial Chronicle.

(2696)

Continued

from

page

North Shore Music Theater, Inc., Boston, Mass.

43

Feb. 3

Mediterranean Petroleum Corp.,

Inc.,

March

filed

30

American

certificates for
cent). Price
supplied by amendment.
Proceeds—For ex¬
ploratory drilling and development, in State of Israel,

1,000,000 shares of

trust

(par

stock

named

operations

and

Underwriter—To

expenses.

by amendment.

June 4 filed
to

be

286,027

offered

for

•

five

shares

Proceeds

—

retire

To

notes held by an insurance company

pansion.

General

holders
of

Hospital,

Inc.,

common stock (no par). Price
share. Proceeds—To erect a hospital in the
Borough of Paramus, N. J., and for working, capital, etc.

per

•

(7/13)
$7,500,000 of first mortgage bonds due 1984.
Proceeds—To redeem outstanding $4,000,000 3%% bonds

Co.

Inc.;

White,

Weld

&

Stuart

&

Kidder, Peabody & Co.,
Shields /&
Co.
and
Auchinclcss, Parker & Redpath
(jointly); Equitable Securities Corp.; Salomon Bros. &
Hutzler; The First Boston Corp.; Carl M. Loeb, Rhoades
& Co.

and

American

Securities

Corp.

Tentatively expected to be received
Missouri

April

on

Bids—

July 13.

Public Service Co.

23 filed 50,000 shares of cumulative preferred
(par $100). Price—To be supplied by amendment.

stock

Proceeds—To

redeem

($3,475,000), to
for

ance

(jointly).

construction

Peabody &
definitely.

Offering

—

Postponed

in¬

Monterey Oil Co., Los Angeles, Calif.
Feb. 2 filed 257,338 shares of common stock
(par $1).
Price—At the market price then prevailing on the New
York Stock Exchange, or through special offerings or 1

secondary distributions., Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
of their immediate families

Corp. (106,480).
planned.
Mountain

.

Uranium,

\

.' ;

Hash-Finch

March

v

Co., Minneapolis, Minn.

&

&

Co.,

filed
600,000 shares of cumulative preferred
(par $25). Price—To be supplied by amendment.
To

—

redeem

presently

outstanding

600,000

shares of 4.90% cumulative preferred stock. Underwriter

Blyth & Co., Inc., San Francisco and New York.

Pumice, Inc., Idaho Falls, Idaho

Birmingham,

March

Underwriter—None.

29

(letter

of

notification)

1,170,000 shares of
Price—25 cents per share.
obligations and for
working capital.
Office —1820 N. Yellowstone, Idaho
Falls, Idaho.
Underwriter — Coombs & Co., Salt Lake
City, Utah.
stock (par 10 cents).
Proceeds—To complete plant,
common

Mexico

Copper Corp.
April 4 (letter of notification) 600,000 shares of common
stock (par 25 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses.
Office—Carrizozo, N. M.,
and 1211 E. Capital St.,
Washington, D. C. Underwriter
—Mitchell Securities,
Inc., Baltimore, Md.
(letter of notification) 7,127 shares of common
being offered for subscription by minority

of

shares of class A

a

total

number

95.255%)
per

on

(par $10).

basis of 0.135

North

stock

Pittsburgh Telephone Co.

May 1, 1954,

on

per

share).

one

units of

unit.

r

I

I I

Underwriter—None.

i

.

i

T-M

.•

*




preferred
one

and

1387, Las Vegas, Nev.

tourist

Under¬

both of New York.

;

Corp., Inc., Wichita, Kan. (6/30)]
June 10 filed 400,000 shares of common stock (par $1);

* Sutton

(O. A.)

of which

200,000 shares are to be sold by company and
200,000 shares for account of O. A. Sutton, President.
Price—To be supplied by amendments Proceeds—From
sale of common stock, together with proceeds from private

sale

of 15,000 shares of 6% cumulative preferred
$100 per share, to retire preferred stock and

stock
.

at

debt.

Underwriter—F.

Eberstadt & Co.,

New York, and

Shillinglaw, Bolger & Co., Chicago, 111.

Tape Recording Corp., N. Y.
May 27 (letter of notification) 15,000
cumulative preferred

expire

on

July 1, 1954. Price—At par ($1 per share),
working capital. Office—201 East 42ndl

St., New York 17, N. Y.

Underwriter—None.

Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000 shares of 6%
cumulative convertible preferred stock, of which 100,000 shares will be offered to public and 50,000 shares to
creditors. Price—At par ($2 per share). Proceeds—For
working capital.
Underwriter—Graham & Co., Pitts¬
burgh, Pa.
:

Telecomputing Corp., Burbank, Calif. (6/28)
7 filed 95,000 shares of capital stock
(par $1).
Price—To be supplied by amendment.
Proceeds—For
June

manufacture of "Point O'Sale Recorders" and for further

development and production of other units in com¬
pany's automatic business controls program. Underwrit¬
ers—Hill Richards &

both of Los

William R. Staats & Co.*

Co. and

Angeles, Calif.

Tennessee Gas Transmission Co.

(6/21)

May 26 filed $25,000,0G0 first mortgage pipeline bonds
due

1974.

Proceeds—To

construction.

repay

Underwriter—To

petitive bidding.

Co., Longmont, Colo.

stock

(par

$100)

to

share of each class of stock.

Proceeds

loans.

Proceeds—For general corporate pur¬

Office—Gibsonia, Pa.
i»'

stock

i

—

For

new

Price—At par

bank loans and for
be determined

by

new
com¬

common

operating

Colo.

offered

Price—$100

expenses

Business—Finance pompany.

194, Longmont,

be

in

Address—P. O. Box

Underwriter—William E.

&

Conly,

Co.

(EDT)
&

per

and to make

Probable bidders: Halsey, Stuart & Co.

Inc.: Stone & Webster Securities Corp. and White.

(jointly).
on

Bids—To be

received up to

11

WelcJ
a.m,

June 21 at office of Cahill, Gordon, Reindel

Ohl, 63 Wall St., New York 5, N. Y.
Texas Instruments, Inc.,

Dallas, Tex.

May 28 (letter of notification) 30,000 shares of common
stock

(par

$1).

Price—At

market

(aggregate

not

to

:

total

Jr., Longmont, Colo.
v'f'

f

maxi¬

(no par) and 1,150 shares of 6% cumulative parti¬

cipating

the basis of

share for each five common shares held.

($25

-At Sunburst Madison Oil Co., Dover, Del.
(letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Procseds—
For exploration and development of oil and gas proper-'
ties. Office—129 S. State St., Dover, Del/ Underwriters
—R. V. Klein Co. and Lawrence & Murray Co., Inc.,
June 7

-

development

stock feeding

April 19 (letter of notification) 1,150 shares of

April 23 (letter of notification) 2,000 shares of common
stock to be offered for subscription by common stock¬

poses.

and

Proceeds—For

par.

Address—Box

(par $10)

4,226

cumulative preferred

agriculture, live

Rio Grande Investment

Office—317 Baronne St., New
Orleans, La.

holders of record

be

to

additional

Underwriter—None.
.

stock

writer—None.

143,086 shares. Price—
share. Proceeds—For property additions and im¬

provements.

Price—At

for

activities.

Outstanding, 1,059,901 (or
by Middle South Utilities, Inc. who

an

land

of

June 24. Of the

shares

are owned

subscribe for

may

$25

of

1

common

of'4,226 shares of 7%

mum

stock (no par)

on

repay

• Ranches (J. D.), Inc., Las Vegas, Nev.
May 28 (letter of notification) a maximum

Public Service Inc.

held; rights to expire

par)

(no

Proceeds—For

Indiana, Inc.' (6/29)

:

i.':*

5, *-.

—

-•

*-*■ 1

*-*-*"■ '• *

J

offered for possible public sale
during the period July 1, 1954 to June 30, 1955. Price—
At market. Proceeds—To selling stockholders. Under¬
writer—None. The shares will be sold through brokerage
houses.
V;

Co., Philadelphia, Pa.,
New York, will act as

9

Proceeds

h National Union Life Insurance Co.
9 (letter of
notification) 10,000 shares of common
stock
(par $1).
Price—$10 per share.
Proceeds—For

June

common stockholders of record June

Sun Oil Co., Philadelphia, Pa.
April 15 filed a maximum of 139,662 shares of common
stock

share for each

Underwriter—None.

Public Service Co. of

stock

share for each

March 30.

to

•

June

May 19

cumulative preferred stock

5%

corporate purposes.

For investment.

New Orleans

of

shares of nonstock to be first offered for sub¬
scription by common stockholders on the basis of one
preferred share for each four common shares held; rights

* Nation-Wide Securities Co., Inc., New York
Jane. 15 filed 100,000 shares of capital stock. Proceeds—

New

shares of Corporation stock for

• Pubco Development, Inc., Albuquerque, N. M.
June 16 filed 908,967 shares of common stock (par $1)
to be issued and sold at $1 per share upon exercise of
outstanding subscription warrants (dates advanced to
period July 15 through Oct. 15). Proceeds—For general-

(letter of notification) 58,800 shares of com¬
mon stock (par
$1). Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Boston, Mass.

Ala.

new

13

shares

v

10

Office—424 Brownr-Marx Bldg.,

(a) ?.
each of the 5,000
(par $10) of
the Company and (b) 23 shares of Corporation stock
for each of the 25,000 shares of $10 par common stock
of the company. Offer expires Oct. 31.
Underwriter—
None. Office—Salt Lake City, Utah. Statement effective
of

Porta Co., Inc., Chestnut Hill, Mass.
April 8 (letter of notification) 640 shares of $6 cumula¬
tive preferred stock (no par) and 640 shares of common
stock (no par) to be offered in units of one share of
each class of stock.
Price—$100 per unit.
Proceeds—
For manufacture of sporting goods.
Office — 48 Moody
St., Chestnut Hill, Mass.
Underwriter — Minot Kendall.
& Co., Inc., Boston, Mass.
/

Industries, Inc., Natick, Mass.

expansion.

Drexel

Morgan Stanley
Dealer-Managers.

J^'iin & Co., of Minneapolis, Minn.
Natick

one

filed 640,000 shares of common stock (par 50
being offered in exchange for the $300,000 par
of
authorized, issued and outstanding capital

stock of Strevell-Paterson Finance Co. on the basis

.

at the rate of

and

May 24 (letter of notification) 1,000 shares of common
stock (par $10). Price—At market (estimated at not to
exceed $18.50 per share).
Proceeds — To Willis King
Nash, the selling stockholders.
Underwriter — J. M.->

<

per

Omaha,

19

value

held; rights to subscribe on June 28. Price—
share. Proceeds — For construction program.

Underwriter—None.

Inc.

May 18 (letter of notification) 30,000,000 shares of com¬
mon stock. Price—At
par (one cent per share). Proceeds
—For mining expenses. Office—1117 Miner. St., Idaho
Springs, Colo. Underwriter—Underwriters, Inc., Sparks,
Nev.

Feb.
cents

shares

$34

States

v

of record June 7
12

Calif., and Smith, Polian & Co.,

:;"v.

Strevell-Paterson Finance Corp.,

Philadelphia Electric Co.
May 19 filed 906,917 shares of common stock (no par)
being offered for subscription by common stockholders

(150,458); and The Lehman
No general offer

per share.
Proceeds—To
Underwriters—Lester, Ryons & Co.,

ern
Washington and Northern Idaho. Price—100% of
principal amount. Proceeds—To improve facilities and
for working capital.
Underwriter—None.

•

Underwriter—None.

at rate of one new share for each

March 8 filed $600,000 of 5% convertible debentures due
June 15, 1964, to be sold to pea growers located in East¬

(6/23)

filed

York.

.

Underwriter—None.

Co.

Price—$13

bank loans.

Nebraska.

Mining Corp., Santa Fe, N. M.
600,000 shares of cumulative sinking fund
preference stock and 300,000 shares of 10-cent par
common
stock to be offered in units of two preference
shares and one common share.- Price—$3 per unit. Pro¬
ceeds—To retire 40,526 shares of outstanding preferred
stock, for power line extensions and electric transform¬
ers, equipment and machinery, exploration and working
capital. Underwriter—Barrett Herrick & Co., Inc., New

Underwriter—Kidder,

program.

Co., New York.

11

held.

Lps. Angeles,

Price—
Proceeds—For construc¬

supplied by amendment.

9

shares

repay

Petala

June

outstanding first preferred stock
$750,000 bank loans and the bal¬

repay

six

•fc Peoples Gas Light & Coke Co.
June 14 filed $39,950,000 first and refunding mortgage
bonds, series I, due July 1, 1979.
Proceeds—To redeem
$15,000,000 series F bonds and $24,950,000 series H bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp; Glore, Forgan & Co.; Kuhn, Loeb & Co.
Bids—Tentatively expected to be received'in July.

Co.,

Power

May 26 (letter of notification) 13,135 shares of common
(par $10) to be offered to commopl stockholders of

record about June

Loeb, Rhoades & Co.

Underwriter—To be determined by com-

Utah

Spokane Seed Co., Spokane, Wash.

Panhandle Eastern Pipe Line Co.

To be

of

stock

tion program. Underwriters — Kidder, Peabody & Co.,
Merrill Lynch, Pierce, Fenner & Beane and Carl M.

Aug. 19, 1954, to repay bank loans and for construc¬

Halsey,

Southern

(par one cent). Price—,
Proceeds—For explora¬

stock

(letter

Marietta St., N. W., Atlanta, Ga.

par

borrow¬

May 28 filed $35,000,000 of debentures due 1974.

Power & Light Co.

bidders:

bank

amendment.

June 10 filed

Probable

shares

seven

Price—At

reduce

.

tory drilling and development in State of Israel, and for
operations and expenses. Underwriter—To be named by

eral public. Price—$2 per share. Proceeds—To increase
capital and surplus. Underwriter—None.

"pC^ive bidding.

common

To be supplied by amendment.

Mission Indemnity Co., Pasadena, Calif.
March 29 filed 600,000 shares of common stock (par 65
cents) to be offered first to stockholders and to gen¬

on

share).

000,000 shares of

j

tion program.

share for each

26

Southern States Chemical Co., Atlanta, Ga.
May 24 (letter of notification) 2,565 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record May 31, 1954 on the basis of one share
for each eight shares held
(with an oversubscription
privilege); rights to expire on June 21. Price—$15 per
share. Proceeds—For working capital. Office—1061 W.

Underwriter

Pan-Israel Oil Co., Inc. of Republic of Panama
March 30 filed American voting trust certificates for 1,-

Underwriter—None.

Missouri

one

and/or preferred stock held.

Proceeds—To
Underwriter—None.
per

ings..

May 17 filed 900 shares of

—r$l,000

the ratio of

in

common

($100

N. Y.

Bronx,

(6/22)

Pacific Telephone & Telegraph Co.
May 7 filed 1,004,603 shares of common stock to be of¬
fered for subscription by common and preferred stock¬

of

Underwriter—None.

j Midland

Co;

—Blyth & Co., Inc., New York and San Francisco.

4V2%
and for further ex¬

$4,050,000

Electric

&

Milwaukee, Wis.

notification) 15 shares of common
stock (par $10).
Price—$6,500 per share. Proceeds—To
Estate of Lloyd R. Smith, deceased. Underwriter—Gard¬
ner F. Dalton & Co., Milwaukee, Wis.
May

filed

2

Stanley

Smith Investment Co.,

Wainwright &

C.

ment. Proceeds—For construction program.

stockholders

share for each

new

an oversubscription
privilege).
July 19. Price—To be supplied by

on

par
($2.50 per share). Proceeds—To
Smith, the selling stockholder.
Office—50
New York, N. Y. Underwriter—Cooke and
Lucas, New York City.

P.

Church St.,

1,000,000 shares of redeemable first pre¬
ferred stock (par $25). Price—To be supplied by amend¬

stock (par $12.50)

common

one

Pacific Gas

June

(with

Rights will expire
amendment.

the basis of

on

held

(6/25)

snares oi common

subscription by

of record June 25

Underwriter—H.

St., Boston, Mass.
Co., Boston, Mass.

be

Corp.

Price—At

stock.

'

Merritt-Chapman & Scott Corp.

,

one

be

for

and

voting

common

$80,000 of 5%

Feb.

Republic of Panama

—To

Smith-Dieterich

May 27 (letter of notification)) 1,775 shares of common

notes due
1, 1974, and 2,000 shares of common stock (par
$10) to be sold in units of $400 principal amount of
notes and 10 shares of stock. Price—$500 per unit. Pro¬
ceeds—For actors' equity bond, royalties, land, construc¬
tion of theater and related expenses.
Office—60 State
(letter of notification)

Thursday, June 17, 1954

K'Jt.iU

over

f..i

$300,000).
ill-

-

Proceeds—To four selling stock>

:.vl a

3

ir.r'lAV

Number 5334... The Commercial and Financial Chronicle

.Volume 179

»'!-»*'!IT*if:.

it.O

holders.

Office—6000 Lemmon

Underwriter—Schneider,

Development Corp.

loan, etc.
tional

r

-v

($2,500); for purchase
interests, leases

acquisition of addi¬
and royalties in the

or

mineral

Office—Glendive, Mont.
Co., St. Paul, Minn.

poses.

Rice

&

Underwriter—Irving J. 1

Williston Basin Oil Ventures, Inc.
(7/1)
May 20 (letter of notification) 2,500,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.

contracts

Proceeds

For

—

exploration costs.

Office

Bank
„

—

420 Fidelity

Underwriter—Tellier

Bldg., Oklahoma City, Okla.
& Co., Jersey City, N. J.
•

Wisconsin Southern Gas Co., Inc.
Trican Petro-Chemical Corp., Montreal, Canada.
May 27 (letter of notification) 12,618 shares of com¬
April 30 filed 500,000 shares of common stock (par $1)/- mon stock
(par $10) being offered to common stock¬
price
To be related to the market price at time of *
holders of record June 1, 1954, on the basis of one new
offering. Proceeds—For development costs and general
share for each five shares held (with an oversubscription
corporate purposes. Underwriter — To be named -by
privilege); rights to expire on July 1. Price—$11 per;
.amendment. '' /•-' /*/•./' v- / '• V.- d-"
77';'Kt : share. Proceeds—To redeem collateral trust bonds..
Office—235 Broad Street, Lake Geneva, Wis.
Twentieth Century Foods Corp., Springfield, Mo.
Under- 4
/ ;'"V; v
June 2 (letter of notification) 120,000 shares of class A V writer—None.
common stock
(par $1).
Price—$2.50 per share. T'Pro- ;
it WLKP Realty Corp and 60 East 42nd Street
ceeds—To retire RFC loan and for working capital.
Associates, New York
Office—303
East
Olive St., Springfield, Mo.
Under¬
June 11 filed "participations" in a $7,000,000
10-year
writer—White & Co., St. Louis, Mo.
—

„

•

,

12% convertible second mortgage on the "Lincoln Bldg."

(7/13)

it United Gas Improvement Co.
June

filed

11

$10,000,000

of

first

mortgage bonds

due

Proceeds—To repay bank loans and for new con¬

1979.

Underwriters—To

struction.

be

determined

by

com¬

Probable

bidders: Halsey, Stuart &
Kidder, Peabody & Co.; Mor¬
gan Stanley & Co. and Drexel & Co.
(jointly); The
First Boston Corp.; Blair, Rollins & Co. Inc.
Bids—
Tentatively set to be received up to noon (EDT) on
July 13.
')_■/
7;//
petitive

bidding.

Co. Inc.; Blyth & Co., Inc.;

multiples of $10,000. Underwriter—None.

Wyoming Oil & Exploration Co., Las Vegas, Nev.
April 29 filed 500,000 shares of common stock. Price—
At par ($1 per share).
Proceeds—For exploration and
development of oil and gas properties. Underwriter—
None.

United States Sulphur & Chemical Corp.,
Carson City, Nev.
(6/18)
April 30 filed 380,000 shares of common stock (par one
cent); Price—$2 per share. Proceeds—For acquisitions,
exploration and development expenses, and for working
capital. Underwriter—Vickers Brothers, New York.

Wyton Oil & Gas Corp., Newcastle, Wyo.
April 20 filed 1,000,000 shares of common stock (par $1).
Price—$1.1214 per share. Proceeds—For general cor¬
porate purposes.
Underwriter
National
Securities

May 19 filed 213,261 shares of common stock (par $10)
being offered for subscription by common stockholders
of record June 8 on the basis of one new share for each

six

shares

held;

rights to expire

on

June 22.

Price—

per share.
Proceeds—To repay bank loans in¬
curred for construction requirements of subsidiaries and

$17.50

remainder

to

be

advanced

invested

or

Underwriter—Kidder, Peabody

&

in

it Uranium Exploration Co.
notification) 25,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—528 East 21st South St.,
Salt Lake City, Utah. Underwriter—None./;
Uranium Mining Corp.

May 27 (letter of notification) 1,199,600 shares of com¬
mon stock
(par one cent). Price—25 cents per share.
Proceeds
For mining expenses.
Office — 402 Boston
—

Building, Salt Lake City, Utah. Underwriters — Carroll,
Kirchner & Jaquith, Inc., Denver, Colo., and Cromer
Brokerage Co., Salt Lake City, Utah.
#

Washington Gas Light Co.

Webb & Knapp, Inc., New

(6/22)

to

effective

expire on Jane

18.

on

June

7,

April 28 stockholders approved
the authorized
shares
when

\

has

been

Underwriter—None.

extended

reported company expects to offer Mo its
stockholders an issue of 260,000 shares of 6%
convertible class A stock (par
$7.50) on a basis of one
class A share for each two

$8.10

shares held.

common

ness
and
for working
capital.
Underwriters—'Dallas
Rupe & Son, Dallas, Texas; and Straus, Blosser & Mc¬
Dowell, Chicago,111. (latter handling books). See under

'Securities Now in Registration'
Central
Dec. 9 it

page 42.

on

Illinois Electric & Gas Co.
announced

was

,

intends to offer and

company

sell around the middle of 1954

an issue of
$4,000,000 first
repay bank loans and for
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Stone & Webster Securities
Corp.; Kidder*

construction.

new

Peabody & Co. and White, Weld & Co. (jointly). 'V-''*
•

Chicago, Burlington & Quincy

RR.

(6/17)C

Bids will be received by the company
up to noon
on June 17 for the purchase from it of
$7,350,000
ment trust certificates to be dated July

due

City Title Insurance Co., N. Y. C.
V/
May 20, it was announced that company is planning to
issue and sell not to exceed $1,000,000 of new preferred
stock.
Proceeds—For working capital.
Underwriter—*
Chilson, Newberry & Co., Inc., Kingston, N. Y.
' ^ 4 •
•

Colorado Interstate Gas Co.

June

8

it

announced

was

(7/21)

stockholders

will

enable

to

the

a

proposal to

increase

construction

22

it

Louisiana

Gas

Co.

Barney & Co. and Blyth & Co., Inc. (jointly).

competitive

bidding.,:Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Lehman
Brothers,

'Webster

&

(jointly);

Securities

Blyth

Central

Corp. ('jointly).

24

&

Corp. and 'White, Weld &

Co.,

Republic

Inc.,

Equitable

Co. Inc.

Securities

(jointly); Merrill
Union

Securities

Bids—Expected about Aug. 24.

Edison

company

Co.

Vice-President.

of first

March

it

5

sought

permission

of

mortgage bonds due 1984.
program.

Co. Inc.;

Massachusetts

Proceeds

—

For

Underwriters—To be determined

The First Boston Corp.; Lehman Brothers;

Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);

White, Weld & Co., Harriman Ripley & Co. Inc.
Tentatively expected
on

June 30

on

on

July 26.

System, Inc.

announced

was

this

struction.

year

Underwriter—To

be

determined

bidding. Probable bidders:
Inc.; Morgan Stanley & Co.

Stockholders will vote

approving bonds issue.

filed 1,125,000 shares of common stock (par
Price—To be supplied by amendment. Pro¬

build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
ceeds—Together with other funds, to be used to

reported

company plans, following set¬
issue and sell from $15,000,000 to
$25,000,000 of new securities. Underwriter—For bonds,
to be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; White, Weld & Co..and
The First Boston Corp.
(jointly); Kuhn, Loeb & Co.;
Harriman, Ripley & Co. Inc. and Alex. Brown &, .Sons
(jointly).
was

Beverage Corp.

May 5 it

reported

160,000 shares of common slock
offered—100,000 shares for account df
and 60,000 shares for selling stockholders. Price
was

to be publicly

are

company

—In

neighborhood of $10

share.

per

Proceeds—For gen¬

eral corporate purposes.

Underwriter—Ira Haupt & Con
Registration—Expected in June, 1954. x"/i V

New York.

ic Daystrom, Inc.
June 14 it

vertible

announced

was

approving

stockholders will vote June 28

proposal to permit the issuance of

a

debentures

directors, and

the

at

discretion

authorizing

the

of

West Ohio Gas Co.,

~

on

geAAM^
For

for




Bank

of

right to subscribe for

than

30 years the founders of Pandick
Press, Inc. have
personally maintained and guaranteed the firm's high standards
of quality.
They are still available at all times to discuss your
more

each

printing requirements.

Toms

r

-

River, N. J.

is

one

of the

Pandick" guarantees the finest and

reasons

most

shares

"Printed by

First Trust &

June 2 it

the

held;

B

additional 3,000 shares of

the basis of

rights to

one

new

share

expire on June

16.

Proceeds—To increase capital and

Deposit Co., Syracuse, N. Y.

announced company

of

new

one

is offering to its

com¬

preferred stockholders of record June I

right to subscribe

basis of

service available.

was

and class B

shares

complete printing

an

on

Underwriter—None.

surplus.

mon

P&UtuuUlq&L Sesiuice.

26

(par $10)

Price—$30 per share.

5%

on

or

before June 22 for 254,316

convertible

preferred

stock

on

the

share for each 10 shares of common or class

preferred stock held.

Proceeds—From

^andicn^ress, /nc.

319 West Market

of

an

'

National

capital stock

Lima, Ohio

general corporate purposes.
Office —
St., Lima, Ohio.
Underwriter—None.

con¬

board

issue of 200,000 shares
of cumulative preferred stock (no par) and on increas¬
ing the authorized common stock (par $10) from 1,250,000 shares to 2.000,000 shares.

the

poned indefinitely.

May 10 (letter of notification) 22,386 shares of common
stock (par $5), to be offered to common stockholders
of record May 15 in the ratio of one new share for each
15 shares held.
Price—$10 per share.
Proceeds—For

Co.

May 14 stockholders of record May 1, 1954 were given

Price—To be supplied by
amendment. Proceeds—From sale of units and 1,125,000
additional shares of common stock and private sales of

60 cents).

&

tlement of rate case, to

First

in units of one $50 deben¬

Nov. 20, 1952

by competi¬

Stuart

Co. of Baltimore

May 26 it

on

Bids—

Halsey,

Consolidated Gas Electric Light & Power

Dallas, Tex.

Dallas, Tex.

v/

,

company plans to issue and
$40,000,000 additional senior deben¬
(in addition to $40,000,000 debentures due 1979 for
which bids are expected to be received on June 28—see
a preceding column under "Securities Now in
Registra¬
tion"). Proceeds—To repay bank loans and for new con¬

later

by competitive bidding. Probable bidders: Halsey, Stuart
&

V

Columbia Gas

(7/26)

Department of Public Utilities to issue and sell $18,000000

a

Cott

Boston

May

through sale of about 70% of bonds and 30% of equity
John R. Fell, a partner of Lehman Brothers, ia

capital.

tive

Arkansas Power & Light Co. (8/24)
Feb. 8 it was reported company plans to sell,
probably
in August, an issue of about $7,500,000 first mortgage
bonds due 1984.
Underwriters — To be determined by

Co.

applied to Colo¬

tures

Cities Service Co., may sell Its
holdings of 1,900,000 shares of this company's stock.
If
sold at competitive
bidding, bidders may include Smith,

Stone

announced company has

for authority to build a $21,500,gair'pipe line, in Colorado, to be financed

natural

sell

reported

was

/

•

Compulsion

to sell additional shares
will probably be made to

Underwriter—None.

programs.

Arkansas

was

company

Offering

1952 filed $29,000,000 12-year 6% debentures
Dec. 15, 1964, and 580,000 shares of common stock

West Coast Pipe Line Co.,

Jufcfcji

000,000 of preferred stock and $30,000,000 of new bonds,
which are likely to go into registration within the next
fortnight. Underwriter—If through negotiation, may be

000

Statement

$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters — White,
Weld & Co. and Union Securities Corp., both of New
York.
Offering—Postponed indefinitely.

vote

increasing the authorized preferred stock from z00,shares to 500,000 shares (par $100).
It is reported
that company has announced plans to market some
$11,000

20,

(par 50 cents) to be offered
ture and one share of stock.

equip¬

Hutzler; Kidder,Peabody & Co.; Blair, Rollins & Co. Inc.

-•

West Coast Pipe Line Co.,

(CBT)

1, 1954, and hiasemi-annually to and including July 1, 1969. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros> &

rado P. U.

present stockholders. Proceeds—To subsidiaries for their

Feb.

;

/-v/

ture

March 5 it

effective May 5.

Nov.

Price—

share to stockholders; $9 per share to public.
Proceeds—To drill about 21 new wells, to
pay indebted¬
per

Dillon, Read & Co., New York.

stock from 4,000,000 to 5,000,000

common

necessary.

construction

York

of $5 in cash and $7 principal amount of debentures for
each share of Equitable stock.
Exchange offer, which

declared

"best efforts basis."

Lynch, Pierce. Fenner & Beane and

April 14 filed $8,607,600 of 5% sinking fund debentures
due June 1, 1974, being offered together witlf certain
cash by the company in exchange for outstanding com¬
mon stock of Equitable Office Building Corp. on basis

was

on a

Prospective Offerings

Corp. and

May 26 filed $5,000,000 of refunding mortgage bonds due
1979. Proceeds—For construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc., and Union Securities
Corp. (jointly); Kidder, Peabody & Co.
Bids—To be
received up to 11:30 a.m. (EDT) on June 22 at company's
office in Washington, D. C.

r

(7/6-9)

was

Colorado-Western Pipeline Co.

subsidiaries.

Co., New York.

June 10 (letter of

Utah National

Corp., Seattle, Wash.,

American Natural Gas Co.

United Utilities, Inc.

it

on

—

[

Byrd OU Corp., Dallas, Tex.
June 3

common

mortgage bonds. Proceeds—To

z

to be sold in

45

*

United States and Canada and for other corporate pur¬

(6/23)

for the construction of the com¬
pany's transportation system, for working capital/and
for other general corporate purposes. -■ Underwriters—
L. H. Rothchild & Co., New York.
/'•

;'vf

(6/28)
100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem-1,250 out¬
standing preferred shares ($125,000), to repay bank

April 26 filed 100,000 shares of common stock (par $1).
Price—$6 per share. Proceeds—To finance the costs of
obtaining

i

May 24 filed

Three-In-One Gold Mines Corp., Reno, Nev.
May 3 (letter of notification) 1,993,333V3 shares of capi¬
tal stock (par one cent). Price—15 cents per share. Pro¬
ceeds—For mining expenses.
Office—139 N. Virginia
St., Reno, Nev.
•

Transportation

**■'# t

•T'S

Western Plains Oil & Gas Co.

Avenue, Dallas, Texas.
& Hickman, Dallas.

Bernet

Texas.

•

(2697)

* it t

;? it**-*

Price—At

this sale,

par

($20

per

share).

together with proceeds from

private sale of $5,000,000 5% debentures, to retire $8,996,400 of class A preferred stock held by Reconstruction

77 THAMES

ST., HEW YORK *

WOrth 4-2900

NY 1-3167

71 CLINTON

(Finance Corporation.

ST., NEWARK, N. J.

Underwriter—William

N.

Pope,

MArkct 3-4994

Inc., Syracuse, N. Y.
gg

gg

t~

Continued,

on

page

46

46

The Commercial and Financial Chronicle...

(2698)

Continued

jrom

Montana-Dakota Utilities Co.

45

page

'

'•

March

17

March 27, it was announced that

bonds.

Proceeds—To repay bank loans and for new con¬

financing late this
."

struction.

of

ance

-

Corp.

tive

—

March

25

determined

Underwriter—To be

bidding.

Probable

bidders:

from

2,500,000 shares to 5,000,000
shares, and the preferred stock from 250,000 shares to
500,000 shares.
'
-

National Fuel Gas Co.

April

it

-

plans to offer about
400,000 shares of capital stock, (no par) for subscription
by stockholders later this year or early next year. Stock¬
holders on April 2i) approved a proposal to increase the
authorized
capital stock from
4,000,000
to 6,000,000
1

reported

was

company

Co.

May

shares.

it Green River Steel Corp.

Proceeds—For new construction. Underwriter—
Dillon, Read & Co., New York, handled secondary offer¬
ing in 1943.

9 it was reported company is planning to issue
and sell $2,000,000 of 15-year first mortgage convertible
bonds.
Underwriter—Equitable Securities Corp., Nash¬

April 29 it

ville, Tenn.

its

New

England Electric System

stock..on
•

Hercules

May 20 it
tion
for

of

Cement

was

40,000

shares

with

one

of

stock

to

be

expansion

Proceeds—For

Indiana & Michigan Electric Co.
Jan. 27 it

bonds

gage

9

Phila-

.

New
Dec.

plans to sell around
issue of about $16,500,000 first mort¬
1984 and 40,000 shares of cumulative

bidders:

Stuart &

Co.

Lehman

bonds.

Proceeds

—

Long Island Lighting Co.

mon

new

^

expire

on or

struction.

shares

on

a

June

Boston Corp. and W. C.

&

Co.

Inc.,

new

&

sell

an

was

1954.

bidding.

bidders:

Halsey,

& Hutzler

Power Co.

•

May

Stuart &

Co.

25

it

was

issue

and

sell

year. Proceeds
outstanding Mountain States Power Co.
(merged with Pacific Power & Light Co. debt and for

Inc.;

construction.

new

Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Inc.; Blyth & Co., Inc. and White, Weld & Co. (joint¬
Kidder, Peabody & Co.; Union Securities Corp.;
Brothers, Bear, Stearns & Co. and Salomon
Bros. & Hutzler
(jointly).
Bids—Expected to be re¬
ceived on Aug. 9.
Lehman

reported company may sell in 1954 about

$3,500,000 first mortgage bonds due 1984.

Proceeds—For

mon

Underwriters—To be determined

\

•

the

•

Minneapolis, St. Paul

in

......

announced

(Canada)
company

has been

granted

obtain a permit to build a 72-mile
pipe
transport crude oil from the Pembina Oil Field

Alberta

by

to

Edmonton.

Mannix

Ltd.

of

(Western) Ltd. of Toronto,
& Co. of New York.

& Sault Ste. Marie RR.

-

Financing will be handled
Calgary, Dome Exploration
and Carl M. Loeb. Rhoades

July 7 at First National-Soo Line
Bldg., Minneapolis
2, Minn., for the purchase from it of
$1,950,000 equip-

certificates, series B, to be

to

and

including Aug. 1,

30

St.

—

,

Blyth & Co.,
'
.

Joseph Light & Power Co.

March 30, C. A.
Semrad, President, announced that the

raise

may

new

this

money

of $1,000,000 first mortgage

through yie

year

bonds

or

from

tp»*>nr»-

bank loans for its 1954 construction
program, which,
it is estimated, will cost
$1,661,000. Underwriters—ivuo
be determined by competitive
bidding. Probable bid¬
ders:

Halsey, Stuart & Co. Inc.; Smith, Barney & Co.,
Glore, Forgan & Co. (jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.
and

Scott

April

June 14 it
of this

.

dated Aug. 1, 1954,

1969. Probable bidders:
Stuart & Co.
Inc.; Salomon Bros. & Hutzler.

Halsey,

27

creased

was

»

or

company's capital stock (par $7.50)

about

July 1.

but»will be offered

purchasers.

stockholders

shares

and

approved
common

the

proposals

stock

authorized

from

$25,000,000
to
specific financing

company

from

which

in¬

5,000,000 to

indebtedness

$50,000,000.

of

The

company has no
program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953. was underwritten by

Drexel & Co., Smith,
Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
,

Seattle Trust

May 26 it

was

&

Savings Bank

(Wash.)

announced stockholders will vote in June

prop ~^al to
g.

approving the issuance and sale to stock¬
2,0^0 additional shares of capital stock in the

>ne

share for each nine shares held.

new

reported holdings of about 770,030 shares

sold by Sinclair Oil
on

Paper Co.

the authorized

10,000,000

ratio oi

equal semi-annual installments to




company plans to offer late
first to stockholders) 800,000 shares of

additional common stock. Underwriter
Inc., San Francisco and New York.

holders

it Pioneer Natural Gas Co.

(CST)

on

and

reported

was

1954r(probably

on a

Bids will be received
by the company Up to noon

mature in

was

right to

jointly
;

(7/7)

ment trust

14 it

line to

(jointly).

I

Pembina Pipe Line Co.

April

(jointly); Kuhn, Loeb & Co. and Salo¬

Bros. & Hutzler

in

the

by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.;
White, Weld & Co.; Kidder, Peabody & Co
and Drexel & Co.

Diego Gas & Electric Co.

Co.

(jointly).

construction program.

San

April 28 it

rary

—To refund all

Metropolitan Edison Co.
was

x

To

bid¬

ly);

Dec. 16 it

Corp.jand Salomon Bros. & Hutzler (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.
\

sale

reported company may
about $30,000,000 of new bonds later this

pur¬

-

bidding, with-the following making bids: Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp.; Kuhn, Loeb &
Co.; Stone & Webster Securities Corp.; The First Boston

(Minn.)

(8/9)

V

Corp.

stock financing to stockholders
in 1953 was underwritten
by Merrill Lynch, Pierce, Fenner & Beane.. An issue-of
$8,000,000 bonds were also sold last year at competitive

approximately $20,000,000 of first mortgage

Pacific Power & Light Co.

Electric

Rockland Light & Power Co.

company

Proceeds—To retire

&

was

April 1, Rockwell C. Tenney, Chairman of the Board, an¬
nounced that the 1954 construction
program, estimated
at $14,000,000, will require further
financing. Common

reported company is planning the issuance

(jointly).

(par $1) from 950,000 shares to 2,Underwriter—Stroud & Co., Inc., Phila¬

common

bidders: Halsey, Stuart & Co. Inc.;
Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly); Salomon
Bros. & Hutzler; Shields &
Co.; Blyth & Co., Inc.; T^he
First Boston Corp.; Union Securities
Corp. and Equit¬
able Securities Corp.
(jointly). (2) For preferred stock,
The First Boston Corp.

.

Wertheim & Co.

issue and

Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros.

was

Aug/.17

on

able

in

Halsey, Stuart & Co. Inc.; Lehman Brothers and
& Co.
(jointly); Smith, Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,

Regis¬

1955, and for general corporate

Probable

Vg.

stockholders will

reported company may issue and sell this
year some additional bonds and preferred stock.
Pro¬
ceeds— For new construction.
Underwriters—(1) For
bonds to be determined by competitive
bidding. Prob¬

Riter

Underwriters—May be:determined by competitive

poses.

Co., Inc.

Y'.'V'

•

announced

was

Rochester Gas

May 17 it

reported

was

program

(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
may

;;

'

delphia, Pa.

ders:

$24,610,000 Atlanta, Knoxville & Cincinnati Division 4%
/', bonds due May 1,

it

Kidder, Peabody & Co. and White, Weld & Co.
(jointly);
Equitable Securities Corp. and Union Securities Corp.

reported that the company

issue of bonds late in

14

it

000,000 shares.

.r'

v

—

Louisville & Nashville RR.
Nov. 12 it

Y

8

ized class B

Inc..

bonds due ,1984 Jn October of 1954.
Underwriters
be determined by competitive
bidding. Probable

tration—Expected about June 17.
-

Funflr Ltd.

vote on increasing the authorized
preferred stock (par
$50) from 14,000 shares to 50,000 shares, and the author¬

./v

York, New Haven & Hartford RR.

and sale of

First

Langley & Co. (jointly).

Service

>-

Feb. 8 it

con¬

The

Investment

it Ritter Finance Co.

that company may consider a
September. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Blyth

one-for-eight basis; rights to

Underwriters—Blyth

Public

Northern States

Proceeds—For

;'/;//•:- v-'l.
Resources of Canada

June

was

refunding

(7/7)

about July 22.

■

securities in the United Slates.

it Northern Pacific Ry.

To

21 company announced plans to offer rights to com¬
stockholders about July 7 to subscribe to 690.062
common

Orleans
it

8

New

Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blyth
& Co., Inc> and The First Boston Corp.
(jointly); Smith,
Barney & Co.
•

'

April 27 the SEC authorized the: qompany to register .as
an investment concern and to make a
public offering of

May 26 it was reported company will offer and sell $6,600,000 equipment trust certificates due Jan. 1, 1955 to
1969, inclusive. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.;
Blair, Rollins & Co. Inc. '

finance construction program.
Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:

^May

;

Proceeds—To repay bank loans and for
Underwriters—To be determined by

C... v:..

announced company plans later in 1954

mortgage

this company tentatively plani
1954 of about $3,000,000 first mortgage

Co.

Long Island Lighting Co.
was

V

-

& Webster Securities Corp.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities .Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc.
(jointly); Lehman Brothers;
Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.; White, Weld &

Corp. (jointly); Glore, Forgan & Co.; Blyth & Co., Inc.
Corp. (jointly); White, Weld & Co.
(jointly); Harriman Ripley & Co., Inc.,
Equitable Securities Corp.
Meeting—Stockholders on
April 27 aprpoved new financing.

$20,000,000

*

-

Puget Sound Power & Light Co.

reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late this
year.
Underwriters—To be determined by competitive

and The First Boston

issue

to

from

April 5 the directors approved a program designed to
refund the company's long-term.-debt.
Bidders may in¬
clude Halsey, Stuart & Co.
Inc.; Lehman Brothers; Stone

.

Co.

New

and Shields & Co.

April 20 it

negotiated basis.

'■■Tv

4

Brothers and Bear, Stearns & Co. (jointly); Kuhn, Loeb
& Co., Salomon Brog. & Hutzler and Union Securitiei

to

proposal

to

I

bidding.
Probable bidders: Halsey, Stuart
Inc.; Kuhn, Loeb & Co. and Lehman Brothers
(jointly); Equitable Securities Corp.; Union Securities
Corp. and White, Weld & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane.
&

sell in thl

Inc.;

deter¬

reported

was

preferred stockholders approved a
the, authorized
preferred
stock

shares

competitive

Light Co.

Halsey,

To be

construction.

Feb.

announced that company may

it

bonds due 1984.

latter part of 1954 $16,000,000 first mortgage bonds. Pro¬
ceeds — To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding,

Probable

16

r.ew

Union Securities Corp.

was

—

Jersey Power & Light Co.

issue and sale in

(jointly); The First Boston Corp.; Harriman Ripley &
Co. inc.; Kuhn, Loeb & Co.; (2) for preferred—The First
Boston Corp.; Smith, Barney & Co.; Lehman Brothers;

Kansas City Power &

—

(jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld & Co. (jointly).
/

.*

preferred stock (par $100).
Underwriter — To be de¬
termined by competitive bidding.
Probable bidders; (1)
For bonds—Halsey, Stuart & Co. Inc.; Union Securitiej
Corp., Goldman, Sachs & Co. and White, Weld & Co.

March 8 it

Proceeds

Underwriters

7

;

\.

Hampshire

body & Co. and Blyth & Co., Inc., (who made the only
bid in June, 1952, for the 5.40% i§sue, which was re¬
jected); R. W. Pr^ssprieh & Co. and Spencer Trask'&
Co. (who were awarded that issue/ in July, :1952,
op a

outstanding
For construction

Thalmann & Co. and Wertheim & Co.

and

an

due

are

competitive bidding. Probable bidders: Blyth
Co., Inc., Lehman Brothers and Bear, Stearns & Co.
(jointly); Carl M> Loeb, Rhoades & Co., Ladenburg,

announced company

was

Novettiber*'l954,

shares.

common

There

offer to
common

&

delphia, Pa.

••

basis.

program of subsidiaries.

share for each four shares held,

Underwriter—Stroud & Co., Inc.,

company plans to
next Fall additional

/

160,300,000 shares, of which it is planned
to issue not in excess of 75,000 shares. Proceeds—To re¬
fund outstanding 50,000 shares of 5.40% preferred stock
and
for, new oonstruction.
Underwriter—If through
competitive bidding, bidders, may include Kidder,.Pea¬
000

mined by

offered

stockholders about July

common
new

14-day standby.

a

modernization.

common

l-for-10

a

9,108,824

announced company plans early registra¬

subscription by
the basis of

on

Corp.

stockholders

-

increase

;

*

*

announced

was

common

(jointly).

Public Service Xo. of New

June

<

v-

company

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., Kuhn, Loeb & Co.; The First Boston Corp.; Harfis,
Hall & Co. Inc.; Harriman Ripley & Co., Inc. and Union
Securities Corp.
(jointly); Lehman Brothers; Kidder,
Peabody & Co.; Blyth & Co., Inc. and Smith, Barney! &

*

,

reported

was

plans to finance-its
1954
construction
program
through temporary bank
loans, with permanent financing delayed until later: in
the year. Previously, the
company had planned to Jlfeat.
an issue of
$15,000,000 first mortgage bonds,-due 1984,
early in 1954. Underwriters—To be determined by com¬

& Co. Inc.

Beane (jointly).
For bonds, to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Lehman Brothers; Kidder,,
Peabody & Co. and Merrill Lynch, Pierce,- Fenner &
Beane (jointly). Common stock was increased by stock¬
on

April 12 it

was

by competi¬
Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blair, Rollins

summer

Proceeds
For new construction. Underwriters — For
f cpmmon stock (first to common stockholders), Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner' &

holders

it

reported that company plans to issue
and sell late? this year some additional fifst mortgage

the company plans new ;
which would require issustock and probably $10,000,000 of bonds.

common

Public Service Co. of .Colorado

•

,
•

Florida Power

Thursday, June 17, 1954

Corp.

will

soon

be

Bids—Expected to be invited

The issue will not be sold publicly
to

a

limited number

of

prospective

it Southern California Edison Co.
June

A.

Harold

Quentin, President,

year

$2^,000,000 of bonds

For

construction

or

program.

may

sell later this

preferred stock.
Underviiters

Proceeds—
—

(1)

For

bonds,.to be determined by competi^'/? bidding. Prob-

Volume

Number 5334... The Commercial and Financial Chronicle

179

(2699)
bidders:

able

Halsey, Stuart & Co. Inc.; Kuhn, Loeb &

proximately

Co.; Blyth & Co., Inc;;: The First Boston Corp. and Dean

(jointay)$(2)

Witter & Co.

financing

For preferred stock, previous

& Co.

Tennessee Gas Transmission Co.

May 24 it

Underwiters—To

construction.

For

new

by

competitive

bidding.--..Probable

Stuart & Co. Inc.;

be

do

to

bank

Proceeds—

some

loans

financing

permanent

to

necessary

Weld

/White,

Halsey,

and

Stone

Stone & Webster Securities Corp. and

June 8

International

it

ing of

stock to finance

common

Mexico.

a

cover

a

ferred

offer¬

an

sulphur exploration and

of

possible

a

stock

Underwriter—Vickers Brothers, New York City.

Offering—Expected in August.

stock, without

class

new

the Isthmus of Tehuantepec in

program on

repay

temporary

Underwriters—

Webster

Jn

Securitiei

an

at

preferred

refunding

of the proposed

Ltd.

May 17 it

$50

stock,

the

of

cumulative

pre¬

cross-Canada gas pipeline would be

securities

to

ap¬

outstanding $6

on

and

preferred

Both

linois

Through

the

same

Co.'s

its

attack* of

,acute
new

of

,,

rather

recent

reflecting

issue market appears to

fallen

into

slumber

something
the

for

the

indigestion,

,

of

from

have

to

deep

from

a

present. That is,

rush

any

Pacific

the

ago

finally

of

syndicate

around

the

100.875.

100

initial

Gas

the

on

ine

&

of

June

back

Really

Several

shaping

Fast One

Connecticut Light & Power Co.,
Such is not the

<

exempt

and

concerned.

case

where tax-

bonds

revenue

In

division

latter

the

are

this week's whopping $300,000,000
York

New

State

offering,

market

yesterday,

credit

tractive
turn in

to

investors,

something of

rating

especially at¬
was
a

able to

record

per¬

formance for this type of market.

to

tne

ratio

tions

Issues

sizaoie

up

offering

of

it

least,; and

whom

have

operations

pulled

one

new

gage

for

registration

back

public

-

•

-I

is

no

the

liking

NOTICE

they

were

fortnight

a

everybody

like

then,

bankers like to

should

It
that

a

reflect

stampede

tional

Si

noted,

however,
glut

buying

of

it

the

the

turned

tide

when

has

Philip Morris & Co. ltd., Inc.
Our Institutional SHARE OWNERS

as

trustee,

recently endowed
ture

into

the corporate

The

two

brought

to

Issues

small

Comp¬

h's

market

share

on

of

to

Slow

8

issues

earlier

this

East

reportedly found the going

still

bit

$0.75

M.

on

the slow side despite




June

ness

June

declared

30,

14,

York

(15c)

per

share

day
on
the capital
payable July 15, 1954
at

the

close

ol

busi¬

1954.
S.

STOUT, Secretary.

1954.

a

FOX, Treasurer.

Packing Company
June 14, 1954

J

COMMON DIVIDEND No. 312

England Gas

and Electric Association

The Garlock

a

Board of Directors,
quarterly dividend of

meeting of the

share was declared on the comstock of the Company, payable

per

1954, to stockholders of
the close of business June

at

the

quarter

ended

Ojf 35c per share

stock of this

Secretary

April

30,

a

COMMON

DIVIDEND NO. 23

=

g§ The Trustees have declared a g
regular quarterly dividend of M
H twenty-five cents (25c) per share g.
1 on the common shares of the g
§f Association, payable July 15, g
g 1954 to shareholders of record gj
g at the close of business June g

| 22, 1954.
|
I
H. C. Moore, Jr., Treasurer
§

1

June 10, 1954

cash

the outstanding

on

1954,

com¬

corporation has been declared

business July 1, 1954.
SIMON OTTINGER, Secretary.

Common and

Preferred Stock Dividends
The Board of Directors of Safe¬
way

New York, N. Y., June 9, 1954

Stores, Incorporated,

on

4, 1954, declared

the

June

$5.00 par value Com¬
mon Stock.

The Electric Storage Battery

NEW

Y03K,

seeks to help

its 85

July 15, 1954.

record

of

business

at

The

Directors

have

of the

fifty
the

the

Company

cents

a

($.50)

declared

on

July 6,

Common

June 30, 1954,

Stock,
to

of record

L. G. HANSON, Treasurer

June 16, 1954
New

York,

N. Y.

on

at

the

share

on

Convert¬

Common Stock dividends and

dividends

share

P"

the 4.30%

Surplus
dividend of

per

on

ible Preferred Stock.

from the Accumulated

ness

care for the less fortunate,
donation will contribute to healthier

better living.

($5.00 Par)

share

Preferred Stock.

$1.07V2

Consecutive

Quarterly Dividend

on

payable

on

the 4% Preferred

Stock and 4.30% Convertible

Preferred Stock

are

payable

July 1, 1954 to stockholders
of record at the close of bus¬
iness June 17, 1954.

stockholders

1954.

FUND

of

provide' free
and

of

215th

$1.00 per

4%

company

the close of busi¬

June 14, 1954. Checks

will be mailed.
H. C. ALLAN,

Secretary and Treasurer

Philadelphia, June 4, 1954
a

this

of the Corporation
stockholders of record

New

in

the close

per share has been
payable Aug. 2, 1954

holders

close

member hospitals on every possible front.
Whether you give of your time as a vol¬
unteer in a hospital or of your money to

your

week

41st Street,

at

regular quarterly dividend

declared

ven¬

market.

utility

on

COMMON STOCK

HOSPITAL

Small

to

1954.

15,

payable Aug. 1, 1954 to

holders of record

really

to

declared

CORPORATION"
New

cents

60<t per share on the

clared

powers

Street,

fifteen

CUMULATIVE PREFERRED STOCK

the

York

exercised

been

SHARES

Wall
of

SHARES

The regular quarterly dividends
of $1.00 per share on the 4%

A
troller,

Treasurer

following quarterly dividends:

was

the

dividend

JOSEPH

has

Directors

SAMUEL

June

the 3.90% Series have been de¬

which

NATIONAL

A

payable August 2, 1954, to stockholders of record

of business

pension funds

City

KEMP,

quarter-annual dividend of 15 cents per share
the Capital Shares of the Corporation, pay¬
able June
30,
1954 to stockholders of record
at
the close of business
June 21,
1954.

For

the

New

M.

on

mon

Series and $0,975 per

power

WALLACE

Eastern

NOTICES

CAPITAL

ON

of

Board

dividend

to

inclined

on

Plywood

DIVIDEND

the part of institu¬

side. After all

choosy

Panhandle

DIVIDEND
The

at the close of

recent

still

for

21

Corporation

anything approaching

are

Gas

GENE RAT R E ALTT&UTILIT IES

STOCK

buyers.

They

Directors of this Corporation have de¬
a dividend of
37',2 cents per share on the
Preferred
capital stock.
They have also de¬
clared a dividend of 62,/2 cents
per
share on
the
Common
capital
stock.
The
dividends
on
both
Preferred
and
Common
stock
are
payable
August
2,
1954,
to
stockholders
of
record at the close of business
July 2, 1854.

United States

I

keep busy.

be

on

June

The

::k£' *£■/ '

the

been relieved the market does not

yet

NOTICES

clared

has

record

But

the

while

deter¬

Halsey

$35,000,000 of debentures.

June -30,

from

else,

be

United Shoe Machinery Corporation

to

■

'mon

than

ago

week

'2H

"

the standpoint of inventories.

of new

called

has

opened

and

C£l
%

l4<i y'2v

to

more

underwriters

of

DIVIDEND

$25,000,000 of new first mortgage
bonds

May

—

SltosSiaS,
\mmth

gainsaying the fact/
much

is

Co.,

and expects
fortnight.

H. B. Pierce,

'{"*■■■<

are

a

Co.

be

to

Gas

21, 1954.

Tea I

/Z'y'V

There

bids

offering.

ifp&,F0R:

on

opportunity..- to

that conditions

Gas

maturity

CALL

standing by io'give the market

show, Its

sell

Corp. and Glore(jointly); Blyth & Co., Inc.; Lehman
Bear, Stearns & Co. (jointly)

Tennessee

held this day, a

ap¬

are

mettle..

planned to issue and

Underwriters

refunding mort¬
early

is

§§

an

•

within

Meantime,

are

condi¬

market

25-year
for

It

Co.

CORPORATION

near-term

first and

Co.

stock

v

issues

propitious. Peoples

bonds,

Proceeds—To

bonds.

new

the. works,.

already in

public.

Dillon & Co., New York.

record

jujtgtit oc emit: uo. lias $jtf,yju,ooo
of

these

$11,000,000

stock

preferred

register

&

Interstate

an!

Ahead

new

provided

are

in sub¬

4,100,000 shares of

plans to sell $30,000,090

up

bonds

At

that potential issuers, some

pears

of

the

say

and

the

14

of

point the calendar of prospects is
thin

to

Pipe Lines will market next mid¬

offering

stand¬

corporate

a

this one.

sufficient

was

a

RR.

improvements.

Forgan

Colorado

setting
of

of

Brothers and

Iv'-

the

on

totals respectable.

from

But

placed

excellent

makes its securities

DIVIDEND

to keep the
-

Au¬

Thruway

thority

who's

that

an

holders

to

in

plans to

now

announced stockholders will
vote June 30

snares of common stocx

New

-\'
A

company

approving a proposal to allow company to sell first
refunding bonds without obtaining approval of

DIVIDEND

I,

offering price of

concerned. J,

are

was due on

was

share for each 10 held at 14.

side

,

offerings

it

apparent

company also has

590,Z9U

.

of course, as far as new corporate

to afford

inquiries,

it

made

underway

released

bid

priced

company

quick sell-out

settled

and

offering today 200,000

yield of 4.12% to the purchaser.

said,

underwritten.

mined by competitive
bidding. Probable bidders:
Stuart & Co. Inc.; Union Securities

Transmission

out several

were

this

it

prevtous

Proceeds —To reimburse
company for capital expenditures
already made and for

not yet

Details

Pacific

was

preferred stockholders.

some new

negotiated deal

a

are

Preliminary

....

Meantime,

weeks

a

rate,

Electric 3% sr brought
Relieved

of

issue

buyers.
.

plans to offer

shares of $50 par value preferred

&

coupon

Service

Public

not

Power

3%s and Central Il¬

new

carrying
were

Central

Jersey

Light's

company

provide working capital.

bankers

Two

bonds; and $24,440,000

Underwriter—Eastman,

$6,500,000

'.-T

cases.

Del.

not

were

long-term debentures

June 4 it

value,, making

par

available.

yields of approximately 3.14%* in
both

Co., Wilmington,

stock to be sold

t

Western

a

future

reported

common

Washington and

Oregon.

reclassify 500,000 shares

appropriate time, when conditions warrant

was

September

a natural gas pipe line from the
Canadian Peace River field to
western

value, into 1,000,000 shares of

par

in

Underwriter—If underwritten

^-year, first mortgage

common

•Underwriter—Union Securities Corp., New York.

annouced that the cost of the building

was

additional

sell

$29,000,000 in l-to-5V2-year serial
notes; $71,000,000

ordinated

Ultrasonic Corp.

March 26 it

may

and

announced

issue

;

Trans-Canada Pipe Lines,

.

stockholders.
&

company

issue

to

West Coast Transmission
Co.
Oct. 14, 1953, it was

construction esti¬

of presently authorized but unissued $6

plans soon to file

plans

be Laird

Inc.

reported

finance construction of

Sulphur Co.

registration statement with the SEC to

development

&

to

was

offerings to stockholders

^Tri-continental Corp.

announced company

was

stock

>

March 30 stockholders voted to
Texas

to

new

it

announce

Corp.

$11,000,000 for 1954.

Co.

&

for

pay

14

may

Corp., both of New York.

White, Weld & Co. (jointly).
•

★ Welex Jet Services,
June

com¬

reported company plans later this yeai

was

mated to cost about

determined

bidders:

financed

Underwriters—Lehman Brothers and Wood,

March 16 it

addition

(in

bonds filed May 2l6 with SEC).

to $25,000,000

be

$219,000,000 of first mort¬

Transcontinental Gas Pipe Line

'

of $20,000,000 of debentures later in 1954

would

Gundy & Co., Inc., both of New York,

reported company plans issuance and sale

was

bonds.

gage

T.'r,//'

(jointly).

which

stock and debentures and

mon

^handled by The First Boston Corp.- and

was

Dean Witter

$292,000,000,

through the issuance of about $36,500,000 each of

47

MILTON L. SELBY, Secretary

June 4, 1954

The Commercial and Financial Chronicle..

48

.Thursday, June 17, 1954

(2700)

ing General, having framed the

BUSINESS BUZZ

theatre campaign, called in the

commanding

Washington
A

BebiiuLthe-Scene Interpretation*

Capital

from the Nation'*

plan.

staff

and

Army
the battle

On Tuesday he called in

and explained the battle plan to

the Commander and staff of the

V

W

||

Second Legislative Army Corps,

Cv

A,

VxAj

xJL V

(

Legislative

First

the

Corps and explained

•

•

•

general

of

and

so

until

on

manders

had

the

all

been

given

com¬

their

assignments.

Then, after that pro¬
reached a tentative
stalemate, the White House or¬

as

proposing
program.

dered

Mr. Eisenhower says

that this

reactions

of the first

jiki*

if

even

achieved

do

Parliaments

It is

of

super

Supreme

there

that

Moscow

the

in

or

the

highways

-

the

of

achievement

and

an

and

a

as

down

fast

travel

elements

Congress

meeting

determine

consult

..;
1

background

ideas

that

Few suspect that the im¬

a

"Ja"

the

the

has acted
-

that

-

as

is

Congress

a

President,
Hill,

studies

(or otherwise)

committees, and so

that the ultimate responsi¬
bility rests with Congress to
write the laws as carefully as it
on,

may

out

not

and

the White House

irritated with
the failure of Congress to quiz
the President what he wants in
a

housing program.

The White

scant consideration

Administration

accommodation

merely

a

compromise
of

the

two

tionalists"

between conservative

ward

tives

and continuing consultation be¬
tween the White House and the

in

Con¬

gress.

Realistically the conservative
Chairman

frankly recognized

as

January

the

lican

1953

party

that

could

going

concern.

discussed this strat¬
egy, the Republican leaders ap¬
proached the White House to
seek to put the
arrangement
Having

associated

Adams,

Repub¬

continue

to

undertake

to

'

Olin Industries

White

the

with
25

Anheuser Busch

of "be kind to

Con¬

the

sys¬

schematic

This

White

pictures of

MC's

each

together
an

complete

House,

relay of

with

let

the petroleum industryPetroleum Institute,.

on

American
50

50th Street, New

West

York

20, N. Y. (paper), single copies
on request; bulk copies, $20 per
hundred.

this total fail¬

to

Credit

Federal
Who

Holds

Creditors*

and

the

Debt?

National

Business

These

"The

official statement.

billed

were

the President's sincere fram¬

ing of his 1954 annual message
with

consultation

in

What

Copgress.

happened

actually

was

that the President presented

the

various leaders with a tentative

draf\ of his proposed "Annual
Message."
trade

were

Senate

Ways

and

Where

and

taxes

involved

dent called in

the

son—Amos

foreign

the Presi¬

the Chairmen of

Finance

and House

School

Tuck

of

Administration, Dart¬

mouth

College, Hanover, N. Y,
(paper).

Foreign Exchange Regulations i»
Great Britain, Supplement 9 —

Switzerland,

Basle,

ments,

Settle-^

International

for

Bank

(paper).
Investment

Companies

tion— Arthur

Where

picnic luncheons at the
House.

Grin" and

;

Facts About Oil—Reference book¬

—Professor Marshall A. Robin¬

as

leaders

So. Mr. Adams set up

at

Olin Oil & Gas

schools.

gress" gesture.
tem of

non-conformist

and

formist

December.

the

Mr. Adams did

to grasp

sort

a

personal,

any

and

leaders at the White House last

continued

was

case

any

genuinely consult Con¬
gress in advance came during
the meetings of the legislative

that what the
wanted
"give and take"
in framing legislative programs.
Instead, Mr. Adams seemed to
figure that what was called for
seem

the

throughout

on

sessions in re¬
lays
also,
thereby
including
political children from the con¬

ure

adequately by himself, but dele¬
gated his "Chief of Staff," Sher¬

early as

so

The climax of

appar¬

ently concludeci that such an ar¬
rangement could not be handled

was

to

county

Disregards Advice
Eisenhower

Paine, Webber, Jackson &
Curtis, 626 South Spring Street.

month.

effect.

President

man

one

into these eating

Make Approach

into

of

practical ' private
give and take between MC's and
the President, on the practical,
legislative problems of the day,
was
entirely precluded.
Mr.
Eisenhower brought Democrats

provided for luncheons
in relays of 25 MC's at a time

Edi¬

1954

Wiesenberger

—

Arthur Wiesenberger &

Co., 61
Broadway, New York 6, N. Y„

(cloth), $20.

Committees.
and monetary

Means

housing

policy were involved, he called
the

in

Chairmen

of

the Bank¬

Concession to Members N.A.S.D.

ing Committee, and so on.
To

the MC's,

they

the

got

impression that the Command-

National Oats

Texas

Calif.—James

become

Monday, the school children

In

design

Miss.

has

City Hall Building

new

cordial,

to

long
compromises with
they regarded
as
their
principles to make the GOP a

Congressional

Committee

ANGELES,

Terrell

another county on Tuesday,

and

conserva¬

prepared

of a

of

make

not

GOP

of

Bell-

(Special to The Financial Chronicle)

LOS

on

and "for¬

what

lican party. They further sought

channel for regular

the

fully

the

see

I
were

buses

school

honest

looking" elements of the

to set up

elements

staff

4100

weekly schedule for the county

team.

responsibility.

a

an

were

the spontaneity

had all

It

if the legisla¬
Eisenhower

between "interna¬
and
"isolationists,"

adjustment

conflicting wings of the Repub¬

has been privately

House gave

or

responsible

know how.

For instance,
-

"isolation¬

Their idea instead was to work

deliberative

by the White House Staff, speccial advisory

were

crowd.

grasp

body; that regardless of the most
brilliant

Mr.

advisers

were

of Capitol
if he failed to

opinion

no il¬
Eisenhower's

They had

right wing. Rather, they
realistically aware of the
prospective bias of the thenforming White House palace

Congress.

Nevertheless,
in

con¬

that by

idea

draw water only

tive product of the

assembling around Mr.

that

lusion

ist"

tradition

no

Inc.,

Now With Paine, Webber
"Frankly, Peterson, I don't think this would be the
exact psychological moment to ask for that contract!"

In other words,

by

—

liaison they could foist
relatively
conservative
upon
the palace crowd

was

close

leaders

and

Eisenhower.

plications of the President's im¬
plied
criticisms
of
Congress'
failure to give him all he wants,
is that this could only be done
with

a

their

preroga¬

fram¬

legislative program.

a

Congressional

such

tives.

con¬

a

before

Congress

meaning to accord the legisla¬
tive bodies full recognition of
constitutional

Wash¬

if

servative—had

r

were

in

a

tinuing liaison could not be set
up whereby the President would

is

credit

full

Congress,

of

planning
ington to

the

joined

Lee,

with

the very time this report
being written, the leading

At
was

legislative

.

m

es¬

A.

given President Eisenhower for

i

to

was

&

flower Boulevard.

Congress So Thinks

ing

e

problem be¬

gram.

a

.

Walker

Congress into partnership
before framing a legislative pro¬

Elsenhower Misunderstands

t h

consequence

ing

think¬

have

Walker

positive
with Congress, thus tak¬

liaison

BEACH, Calif.—Arthur
Steffen, Jr. and Everett L.

L.

effective and

an

North

464

LONG

in

victory

invariable pat¬

tive.

In

mandate,

tablish

legislative

Co.,

(Special to The Financial Chronicle)

large personal elec¬

the greatesf single
fore the President

super-high¬
way to enactment of the results
desired by the Strong Execu¬

broad

a

his
slim.

tion

rapid

connected

now

&

Douglass

Two With Walker & Lee

had

Eisenhower

Congress was

ing to bring about unanimity—
and
prompt
unanimity — to
curve

is

Bedford Drive.

achieved

convoca¬

tern of like shirts or like

HILLS, Calif.—Wal¬

Lower

B.

with

President

goals of the Supreme Executive,
it takes an automaton "Ja" leg¬
islature

by contrast, was slender,
correspondent wrote:

(1) That the paradox of the
election
was
that while

Soviet in
are
broad

to

ter

1952

only in the Reichstag un¬

Hitler

der

tion

BEVERLY

this

roads.

access

views.]

own

(Special to The Financial Chronicle)

large electoral vot¬

a

gress,

it

eliminate

not

"Chronicle's"

Douglass Adds To Staff

November 1952 that
President
had

(2) That

without curves,

the

ing majority his victory in Con¬

on

super-highways,
twists and turns.

of

age

in
the

while

Parliaments are not meant for

die

and may or may not coincide with

firmed

is a
private one, is that there is no
such thing as a "broad, straight
legislative highway."
Hill,

Capitol

re¬

When the word had been con¬

highway to that kind of Amer¬
ica," the President stated.
One

ignored.

was

flect the "behind the scene" inter¬
pretation from the nation's Capital

Try Liaison

"strong America."
"The legis¬
lative program that you and I
support
is a
broad, straight

of

[This column is intended to

cating.

is aimed to provide a

program

Their advice

(of the past)—soft
mortgage
credit policies—the
White House was again advo¬

,

a

Some

major alterations in the
great plan of political battle.

public exposure of the

a

there.

offer

evils

very

domestic legislative

a

changed

Congress

here and

the Corps commanders dared to

had

gram

providing what is a
complete inventory of the White
House mistakes in framing and
tol Hill

all,

word

in

be

program.

is regarded on Capi¬

last week

should

what

In

advice about
a
housing

Congressional

to

WASHINGTON, D. C.—Pres¬
address

ident Eisenhower's radio

We suggest to investors
a

liberal

return

seeking

and

potential growth

Valley Gas

Eastern

SNAP-QN-TOOLS

Transmission

Mallinckrodt Chemical
Tenn.

CORPORATION

Production

Pan American

Sulphur

CAPITAL STOCK

Wagner Electric

Bought

—

Sold

—

Carl Marks

Quoted

FOREIGN

SCHERCK, RICHTER COMPANY
Member

Bell Teletype
SL 456




Midwest

Stock

Exchange

320 N. 4th St.
St.

Louis 2, Mo.

,

TEL:

Garfield 0225

L. D. 123

SECURITIES

SO BROAD STREET

HANOVER 2-0050

& Co. Inc

Report available

SPECIALISTS

NEW YORK 4, N. Y.

(

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

10 Post Office

Square, Boston 9, Mass.

Telephone
HUbbard 2-1990

•

»•

)

'.Teletype
BS

69