The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UNIVERSITY
OF MICH GAN
JUrt
.
Chemical
2 i 1S51
Industry Featured In This Issue
UNIVERSITY
OF MICHIGAN
JUN 2 1 1951
Reg. U. S Pat. Office
Volume 173
Number 5022
New York, N. Y.,
Thursday, June 21, 1951
Price 40 Cents
Copy
a
EDITORIAL
As
We See It
—An Industrial Function
In the
days which preceded World War II, and
particularly in those years after the outbreak of
hostilities in Europe and before our
entry into
the fray, the word "appeasement"
grew to con¬
note
something sinister^ Without doubt the quite
general use of the terrh;(as inspired by the crafty
public relations men in Washington) influenced
and stresses the industrial aspects of the
Points out investment in atomic
energy projects
work.
largest single aggregate of capital utilization
nation, and its operations for both defensive and in¬
strides
dustrial
surrender," became a sort
of keynote in "indoctrination"
propaganda out of
Washington. The harm the use of this latter term;
It
sense a substantial
part of our difficulties
trying to win the peace may be traced to the
concepts, the prejudices, the ideology, and the
mind
for
which
these
cliches
two
in
arouse
the
emotions
and
nest
nature
are
of
sometimes
been
of
and
explosion
to
Those
the
on
place
issue,
As
outside
the
the
^eliminated.
be
Gordon
IBA
Texas Group
PICTURES
IN
THIS
Common Stock
as
or
cast,
They
therefore,
inorganic
however,
temperature
And
we
page
York
do
not
define dhe
or
lem. Should
tic
when
it
an
is
<&
put
Request
Boston
INVESTMENT
Stock
New York 5
Exchs.
Tele. BS 424
Tele. NY 1-315
Continued
♦An
special insert ifi
across
Troy
Albany
Buffalo
THE NATIONAL CITY BANK
1,16
OF NEW YORK
Harrisburg
Scranton
Wilkes-Barre
Williamsport
Washington, D. C.
Allentown
Massachusetts
address
New
I rust
Distributors of
or
Dept. Teletype: NY 1-708
Bonds
Canada
SECURITIES
Neto York
NATIONAL BANK
OF
CITY OF NEW YORK
THE
Agency: 20 Exchange PI.
Portland,Ore. San Francisco Loa Angeles
Iowa Electric
BONDS & STOCKS
Light & Power Co.
COMMON
1899
New York
Chicago-
Cincinnati
&
Co.
Dombiioh Securities
6rpokatio?i
115 BROADWAY
Toledo
Buffalo
upon
request
CHICAGO
New York 5, N.Y.
105 W. ADAMS ST.
NEW YORK
.
IRA HAUPT&CO.
Members New York Stock Exchange
and
40 Exchange Place,
Denver
Columbus
Analysis
MEMBERS NEW YORK STOCK EXCH.
CLEVELAND
Chicago
Goodbody
ESTABLISHED 189!
(Incorporated)
Established
THE CHASE
CANADIAN DEPARTMENT
BOSTON
Angeles
Toronto
-
-
OTIS & CO.
Devonshire Street
Los
Canadian Bank
<4Ctornmme
Bond Department
CANADIAN
\
VANCE, SANDERS & CO.;
...
42
today's
Municipal
Corporate Securities
Prospectus frotn authorized dealers
.
page
by Mr. Weber before the Association of Customers'
York City, May 15, 1951.
and
>
-
New York
on
State and
Head Office:
Bond
CANADIAN
Underwriters and
Ill
plas¬
Monthly Commercial Letter
Seattle
Investors
prob¬
a
I6th Annual Meeting of the
PHILADELPHIA
Providence
BROADWAY, NEW YORK 5, N. Y.
Tel. WOrth 2-0115
.
a
non-plastic uses? Many organic
materials with plastic properties, that is, the ability to
have their form
changed through molding, are utilized
in adhesives, in
paint, varnish and lacquer and in treat-
Brokers,
^
SECURITIES
64 Wall Street,
BOSTON
Tel. HAncock 6-8200
_
to
600 Branches
R. H. Johnson & Co.
31 MILK STREET, BOSTON 9, MASS.
120
;
.
also raise
organic material be regarded as
36
State
Weber
J.
Paul
pressure ranges as yet.
The uses to which a material is
put
upon request
York
in
Municipal
duPont, Homsey & Co.
New
are
are
of the Investment Bankers Association in Dallas, Texas.
Established 1927
Members
beipg
.
<■
B o ught—S old—Q noted
on
on
ISSUE—The
23, contains pictures taken at the
page
.
being
chemical
plastic
a
molding, cast¬
or injection takes place also can
significant. The chemical diction¬
aries,
tremendous mobilization
address
OF
on
of
The
I
,
Circular
Dean
u.
/;
by Chairman Dean before the New
Chamber of Commerce, New York City, June 7, 1951.
GROUP
capable
as
molded.
Apparently, the temperatures and
ing
Continued
starting
'
pressures at which the
combat in Korea.
*An
t
origin.
American
beginnings of
am
a
Metals and glass, both of which can
nature
the
or
or
be. molded
T
a
seen
Since I
the
organic in origin.
days, and in the
of
in
dictionary defines
the
program,Iwhich have
to give this talk.
me
chemical«engineer, I learned
a
lot
it. I ran into difficulty in the definition
Even to a chemist the dividing line is diffi*
plastics.
modeled
less;
k
or
preparing
formative
atomic
in
asked
you
plastics group. The
dictionary defines a plastic as being
en¬
'
glad
chemist
a
that fall
Nations' troops committed to
44
page
TEXAS
'
taken
\
"
an
follow in Korea,
VALLEY MOULD
:
atomic
existed.
rapidly.; Holds plastic industry is still in
its infancy.
cult and each chemist
probably has a
slightly different list of the materials
have
general, this type of appeal
Continued
of
and^ scope of that program) and, in
turn, its influehce on national and world affairs.
We have, for example, in December of last year,' heard
a
declaration by the President of a state of national
emergency.
We have seen American and other United
population which
would apparently win a "glorious victory" in
Korea if it took the last gun, the last tank and
the last plane in our arsenal.
& IRON
the
am
while
intervening months these tensions—
far from having lessened—have ac¬
tually increased. Many events have
transpired since October, 1949, both
energy
to
I
not
recall, Mr. Strauss
tense
were
and
course
of
announcement
had
Soviet Union.
atomic
in the Far East in
tinue to grow
of radioisotopes.
exactly
20
months
since
a
Energy Commission ..stood
than two weeks before that
affected
or
of atomic
setting created in part by
a
within
Whatever the wise
use
summation of the
a
you may
Presidential
a
the American
in
Atomic
status
discussions of the Far Eastern situation, but some¬
elements
almost
the
thing fairly close to it, or at least corresponding
to it, is being given
advocacy and support by
same
application
program as it then
many of
spoke „in
people to
the point where they will be
ready to follow
extreme courses. The
slogan "unconditional sur¬
render" has not as
yet made its debut in the
these
in
Says
is still too costly, but great
October, 1949—Mr. Lewis Strauss,
a
member of the Commission,
ergy
political
has
presented to you
Today there are individuals, some of them with
wide influence, who are working the term "ap¬
peasement" overtime in order sometimes .to
their
expected
are
expanding.
purposes
then
largely responsible.
feather
still
are
before this distinguished group to report on the atomic
energy enterprise of the United States.
At that time-
one very
in
of
uses
for, power
member
real
state
years.
Says near-term outlook for plastic industry is being ad¬
versely affected by raw materials shortages, but longer
term outlook is very favorable. Concludes use of
plastics is still limited, but
production and demand will con¬
constitutes
in
Hercules Powder Company
Mr. Weber traces history of
plastic industry and gives
data regarding its remarkable growth in recent
energy program
"unconditional
beyond measurement. In
Asst. Treasurer,
AEC Chairman describes purposes and
progress of atomic
time
all is
By PAUL J. WEBER*
Chairman, U. S. Atomic Energy Commission
energy
us
Prospects of the Industry
By GORDON DEAN*
thinking in this country in a substantial and cer¬
tainly not always constructive way. We had not
been very long at war before another
term, this
did to
Plasties and the Growth
Producing Atomic Energy
other
Principal Exchanges
111 Broadway, N.
WOrth 4-6000
Teletype NY 1-702-3
WHltehall 4-8161
Boston
Y. 6
Teletype NY 1-2709
Telephonei Enterprise 1820
2
The Commercial and Financial Chronicle
(2550)
The
MARKETS IN
TRADING
Security I Like Best
RIGHTS
Carrier
A continuous forum in which,
Corporation
in the investment
Natural Gas
American
each week, a different group of experts
and advisory field from all sections of the country
participate and give their
reasons
for favoring
particular security.
a
England Tel. & Tel.
New
(The articles contained in this forum
x
Public Service of Colorado
they to he regarded,
are
New York Hanseatic
as an
offer
Rexall's
Partner, Hayden, Stone
New York
established
& Co.,
sidaries,
City
butes
Established 1920
Rexall Drug,
York 5
Broadway, New
Teletype NY 1-583
BArclay 7-5660
Inc.
activities
and
chemical
the
companies have been
peaks. Several com¬
panies have
drug
scoring
of
new
Specialists in
&
long
manufactures,
and
line
drugs
drug
of
store
of
complete line
cosmetics
and
under
sold
pioneered
with
new
two
wonder
drugs
Rights & Scrip
Amer-
sucn as
ic
Cyana-
a n
best known
"Puretest."
conducted
are
on
operations
the
by
company
basis
decentralized
a
and
"Rexall"
are
retail
Its
through
three
Aureomycin,
major divisions, namely 88
Owl stores on-the Pacific Coast,
Parke Davis
66
its
with
Chloromyce-
Nfe pONNELL & CO.
t i n,
Members
York
New
York
Curb
REctor
Tel.
i
1
2-7815
There
are
and
n,
with
Merck
Cortisone.
number of other com¬
a
panies also which have done out¬
jobs
of
volume
that
all
the
ings despite higher taxes and the
securities have responded admir¬
about 400
most
For the
part,
Commonwealth Natural Gas
each company has special¬
has
ized in certain fields and later
Dan River Mills
further
expanded
with
deriva¬
not
been
entirely
tives.
Life Insurance Co. of Va.
has
Rexall
STRADER,TAYLOR & CO., (nc!
it
is
TWX LY 77
the 12,500 agency
"Veriloid" which, it is believed,
Results
for
stores
tions.
Quoted
public through these
on doctors' prescrip¬
Clinical testing is continu¬
only
ing with very encouraging results
and an adequate budget has been
provided for further research and
james j. leff & co.
*
.
Telephone BOwling Green 9-5920
>,
Teletype NY 1-3018
<
development work on Veriloid and
other related products according
to the company. While the Ameri¬
can
Medical Association has not
yet given its approval to this new
product, it is believed that Clini¬
cal tests have been given with
hundreds of suf¬
good results to
ferers. In any case, it
Veriloid
that
Interested in
Hidden Values?
at¬
an
tractively situated unlisted
7%
Cumulative Preferred
stock
of
of
arrears
dividend
the
company,
excess
alloy casting
an
which
of the
its research
ther
and
we
six
Trading
gladly
medical
June. It
this
trade
could
be
.
"h
Unlisted
Department, will
provide
you
with
is
120
BArclay 7-7340
seen
approved,
multiplied
end
of
that if
sales
times
its
many
over.
Stock
Jack &
United
18 million people in
suffering from
perhaps
States
several
satisfactory
dated
the
as
During World War
Inc. built up
fa
selling
retail
company-owned
stores.
1946 to
1949
This
decline
it
marginal
resulted
number of other
in
a
un¬
quantity.
N.
used
to
always
called
going
at
(a
Public
i
s
u
n
Week"
2 5,
Common
4.40%
e s s
ods
Berkeley
unor¬
time;
all-expense vaca¬
tions in Florida during the winter,
any
at lake resorts in the
each
associate
friend.
a
when
But
Exchange
Teletype
NY
1-2739
be¬
this
action,
from
its
its
shares
declined
1946
special
other
derivatives
vanced
base
than
the
root
"Veratrum
o
•\
any.
of
is
It
a
Verides."
more
uses
plant
for
and
ad¬
its
called
Black, Sivalls & Bryson
gov¬
Pennsylvania Railroad
Central Electric & Gas
Precision
Central Public Utility 5
American Marietta
Indus¬
The deal provided that
Bill
and
currently
Heintz, should stay
6%.
Rexall's
been
the
selling
are
drug
measurably
effects
of
at around
stores
have
improved
and
operational ef¬
its
forts should result
in further im¬
provement.
*
the
In
year
1950,
the
largest
number of Rexall dealers sold the
greatest
ucts in
that
of
volume
of
the
of
public
rows
with its
Calif.
Next
September,
news
it looks
not
be
trade-marked
Under present tax laws,
if the company
as
subject
to
excess
would
profits
taxes unless earnings before
Fed¬
taxes were in excess of $5.5
million, which would indicate an
EPT credit of around 80c
after taxes.
I think,
could rise to
has
done
an
in
be
a
share
however, that
logically they,
somewhere between
outstanding
view "has
into
which
the
not
consideration
stock
is
job
in
yef ~ been
in
selling
view
cur-,
rently.
him
comes
in
was
Henry B.Warner&Co., Inc.
Members
Phila.-Balto.
Stock
Exchange
123 South Broad St., Phila. 9, Pa.
Phila. Telephone
Bell System Teletype
PH 771
KIngsley 5-2700
New
York
City Tel.:
Direct wire to
BOwling Green 9-4818
Ames Emerich,
Chicago
when
he an¬
Escondido plans for
1948,
ture
site
aircraft
new
acre
parts
and employ
on
2,500
shift, with $15 million
a
40-
a
BUY
on one
year
pay
roll.
U.
Ralph
Chief
Heintz
of
the
continued
ing
staff.
300-man
In
May,
engineer¬
he
1949,
to
director
a
friendly
on
H.
BONDS
consulting contract and is
and
&
SAVINGS
ar¬
ranged
still
J.
S.
as
under
a
leave
on
is
cordial
very
relations
but
with
the
N. Q* B.
company.
Jack
&
Heintz
Industries, Inc.
When
*
the Foy group took
it placed
the
company on a
to
over
sound
INDUSTRIAL STOCK INDEX.
12-Year Performance of
35 Industrial Stocks
sufficiently
permanently
weather
-
the
been
tain
operating
'j
OVER-THE-COUNTER
Precision
that
adopted to manufacture
cer¬
BOOKLET
ON REQUEST
*
had
program
peacetime
products
which
National Quotation Bureau
Incorporated
If my guess on
year
propri¬
new
of
products will be further increased'
this year.
Ralph
to head the
on
prod¬ nounced from
further» a Jack Aviation Co. to manufac¬
a
dealers, it is believed
sale
his partner,
company's operating
and engi¬
neering departments, but Jack got
into
serious, violent and semi-
Rexall
history and with
increase
Jack
etors, and departed for Escondido,
of the low historical price level at
Veriloid
its
tries, Inc.
has
its
Alan Wood Steel Co.
and
high of 19% to a
subsequent low of 4V8 in 1950 and
taken
with
Tel. NY 1 -1932
Houdry Process
ended
war
Heintz
&
New York 7
DIgby 9-1550
Giant Portland Cement
March, 1946, by a group of East¬
ern investors headed by Byron C.
Foy and its name changed to
Jack
Security Dealers Assn.'
Y.
a
an¬
year.
lieved that the work which Rexall
done
Tel.
N.
Broadway
;
sound
is
150
They got wrist
other
watches—and
costly gifts. /
Members
At
got
ing
cleaning is believed to have been
completed but in the course of
5*/4
summer;
frequent banquet dances.
to
it
coffee
share, as compared with a net ernment business dried up and
of $1,250,000 in the precedeentire interest was purchased in
All this general house-
& Rights
Geiisten & Fkekkel
free lunches; free
were
loss
per
Pfd.
Williams
meth¬
Christmas
and showed net
Rights
Sept.
other for
corner
&
Missouri Pacific Serial
large turkey for himself, and
turned the
Rights
1 9 4 8).
and
sales of $153 million and reported
net earnings of $2,024,000, or 58c
&
Se-vice Colorado
Sutherland Paper Co.
*
cording to
share in
company
^
itop
'
s o e e
earnings
the
Teletype BS 259
Natural Gas
Common
he
"associates"
or
:
American
keep
employees
at
:
Telephone .WOrth 4-5000
Bill Jack
ods.
in
year
Y.
meth¬
thodox
last
but
request
Unor¬
(2)
loss of 36c per share in
a
on
148 State St., Boston 9, Mass.
*
financial basis but not
research,
AEROVOX CORP.
Tel. CA. 7-0425
improving the overall picture and
the improvement which Appears
com¬
branch offices
Jack &
national
a
vable
e
per
peak of $1.17
a
in
1 i
e
These
as
fore taxes and that
a
our
Analysis
(1) Ability to turn out quality
work
thodox
concerned
Obviously then, there is a gigantic
potential market for any product
which can give relief to such a
are
Direct wires to
reputation by its:
company's consoli¬
this year's earnings may be some¬
what better than $5.5 million be¬
there
Mobile, Ala.
are ap¬
II
Heintz,
is
picture
high blood pressure, of which per¬
haps one-half are aware of it.
parts of the world. While
N. Y.
NY 1-1557
New Orleans, La. - Birmingham, Ala.
Heintz, Inc.
eral
the
HAnover 2-0700
-
BERKELEY WILLIAMS
hypertension
Broadway, New York 5
Telephone
the
25 Broad St., New York 4,
expect
point of view of potential gain
percentagewise, 1 recommend that
serious thought be given to Rexall
at, this time, especially as it is still
on the long-term bargan counter.
panies which have also been doing
& hall
York
past
been
$6-$7 million, in which case the
large number of people not only, company might report earnings of
in this country but for those who around 90c to $1 a share.
In my
are
suffering from hypertension opinion, the Rexall management
information.
nielsen, gordon
New
before
easily be
can
drug
in other
Members
of
the
derivatives
new
Veriloid may be introduced to
It has been estimated that there
o u r
additional
that
mar¬
Roller, Jr., Man-
of
ager
Veriloid fur¬
on
understand
to
York Stock Exchange
York Curb Exchange
proved, Rexall's position should
be improved materially. From the
"B
even
in
are
current
price.
Frank H.
sales,
ried
are
ket
is estimated
without
AMA approval, have already ex¬
ceeded $1 million. Rexall has car¬
perhaps
We have uncovered
mark but it will,
the
have not
years
precipitous
general
1956
St., New York 4
to
those having high credit ratings.
from
drug stores and is available to the
Incorporated
up
hasjhad certain losses and general
expenses incurred by closing and
hypertension (high blood pres¬
sure). It now has nationwide dis¬
tribution through Rexall and bther
Graham Paige
Broad
eventually get
the
of course, screen all agencies and
will make contacts only through
of
Central States Elec.(Va.)
50
and
year
understanding that
company may
of
insofar
is the most effective means known
—
increase
an
during the past
our
to medical science for the control
Sold
is
its
newly formed ethical drug
manufacturing subsidiary, Riker
as
—
their respective ter¬
This
Laboratories, Inc., had developed
and introduced a new drug known
Lynchburg, Va.
39
formally announced that
it
June
logical
seem
Veriloid and it derivatives
operating
which have exclusive
many of
ritories.
research and last
backward in its
would
of
dividend
pay¬
resumption
ments.. Furthermore, when and if
drug stores in the U. S. and Can¬
American Furniture
marketwise.
are
types
believed
now
stores
franchises in
ably
Members New
of the
satisfactory basis. The Rexall
Company also services some 10,400
independently -owned "Rexall"
standing
Camp Manufacturing
is
it
past
on a
part, each sponsor has
come
through with extraordinary earn¬
Bought
the
unprofitable
and
Trading Interest In
Bassett Furniture Industries
Steiner, Rouse & Co
Richmond, Va.
during
company
stores
the most ada,
for
and,
Bought—Sold—Quoted
Berkeley
—
Members New
Canada.
The
small
Penicil-
Heintz, Inc.
Liggett stores in the East and
in
\j
Stone
Hayden,
partner,
and
and
136
few years eliminated many
erramycin
its
4s,
South
the
36
Charles
and
N. Leonard Jarvie
LD
in
stores
T
Exchange
BROADWAY, NEW YORK 5
120
Lane
Pfizer with its
Stock Exchange
New
its
with
mid
Since 1917
? ■;
Leonard
a
private brand names, of which the
"
N.
—
mer¬
drugs, pharmaceuticals, medi-
cinals
Inc.
Williams, Richmond, Va.
(Page 2)
chandise. Over 7,000 different pro¬
ducts are manufactured and Jt
handled including a
Alabama &
and
Co., New York City. (Page 2)
Jack
subdistri¬
retails
and
Thursday, June 21, 1951
Selections
Drug,
Jarvis,
is
business
.
Louisiana Securities
Rexall
and, through its
it
general
During the past few years, re¬
search
basic
.
Week's
Participants
Their
are not intended to he, nor
sell the securities discussed.)
to
JARVIS
LEONARD
N.
Corporation
120
This
Forum
.
near
looked
earnings for this
to achievement,
promising.
Profits did not
"
Continued
on
page
32
46 Front Street
New
York4,N.Y.
Volume 173
Number 5022
.
.
.
The Commercial and Financial
Chronicle
(2551)
Importance oi Research in
Growth oi Chemical
INDEX
Nemours
&
Cover
Importance of Research in
Growth of Chemical
Industry
—Crawford H. Greenewalt—
1
The High Cost of
nation will grow
It has
the
as
only been since 1900 that
American
know
we
existence.
facture
limited
few
industry,
today, has had its
Then
chemical
to
a
relatively
simple
have
years
of
be
an era
and
for
entire
ical
V
ahead
C.
H.
have
in
these
advances,
lege
like to think that du Pont
contributed its proper share.
have
competitors
our
whip as we have felt theirs.
A The net result has been a
con¬
It is essential that
that
challenge
metals.
given
us
in
invention
now
supremacy of the
have new synthetic
synthetic
finishes,
and
catalytic
reactions,
which
have brought us a host of products
of vital importance to agriculture
and
k
i
industry.
We
of
have
such
tion
a
new
has
new areas for
Factor
These
understanding
polymeriza¬
as
opened
up
wide,
exploration.
in
National
Security
developments
brought
with
the national
them
have
advances
economy
and
national security. Whole
dustries have been
from
peared
laws
of
gains
Tart
the
of address
occasion
of
of 195t
a
the
way
of
of
the
1950
of
times
as
Mr. Greenewalt on
dedication of the du
Pont
Company's Expanded Experimental
Station, Wilmington, Del., May 10, 1951.
in
a
that
we
make
it
tributions.
to
of
yet
of
use
of
Our
Public
!___
Stock
Exchange
Members New
York
HAnover 2-4300
\
DANA
Weekly
to
9576
Curb
Exchange
WILLIAM
WILLIAM
DANA
D.
RIGGS,
Thursday,
f
SEIBERT,
Albany
-
Chicago
-
Glens Palls
2-8200
1-5
-
Schenectady
-
34
39
Worcester
...
Baker-Raulang
Collins Radio
Dictograph
5
,
Di-Noc
52
E.
C.,
;
Hoving Corp.
Eng¬
Copyright 1951 by William B. Dana
Company
Reentered
<
as
second-class
Stromberg-Carlson
matter Febru¬
office at New
ary
25, 1942, at the post
York, N. Y., under the Act
of
March
1879.
Whitin Machine
8,
Works
Subscription Rates
.
;
Manager
Subscriptions in United States, U.
Possessions, Territories and Members
Pan-American
Dominion
1951
of
8.
of
Union, $45.00 per year; in
Canada,
$48.00
per
year.
Countries,
$52.00
per
'
Bought
—
Sold
—
Quoted
year.
4
'
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue
market quotation
records, corporation news, bank
clearings,
state and city news, etc.).
Other
Offices:
135
South
La
i
■
.
..
46
42
1 Drapers'
Gardens, London,
land, c/o Edwards & Smith*
Other
21,
.
;
President
Business
June
Air Products
35
l_—__—
COMPANY, Publishers
REctor 2-9570
Exchange PL, N. Y. 6
1-1825 & NY 1-1820
2
25 Park Place, New York 7, N. Y.
,
40
Teletype NY
5
—
Reg. U. S. Patent Office
B.
HA-2-0270
32
—
Teletype—NY
38
Securities.———
Twice
&
49
COMMERCIAL and
FINANCIAL CHRONICLE
WILLIAM
:
Street, Boston 8
Hubbard
16
Governments
Salesman's Corner
Published
!
51
*
50 Congress
1_„„„„„„„
Engineering
•
'
\
Singer, Bean]
MACKIE, Inc.
6
45
1
The
,
Spencer Trask & Co.
York
Bargeron„___
!
Washington and You
'
^
j
'
32
Tomorrow's Markets (Walter Whyte Says)
i
and
8
.—<.
...
HERBERT D. SEIBERT, Editor & Publishet
New
L_
The State of Trade and Industry..
longev¬
Yapid communication, of
Continued on page 18
}
Thermal Research
The Security I Like Best
increased
Wyoming Oil
8
—
con¬
;
Soundcraft
8
...
—
,
Members
—18
_
be said
learned to
Franco
Corp.
Mfg. Co.
Reeves
._f—:
Report—
on
Bates
33
...
Railroad Securities
High Grade Public Utility and Industrial
25 Broad Street, New York 4
...
Securities Now in Registration.
preferred stocks
Angeles
5
—
—
Utility
Securities
interested in offerings of
are
Stocks..
Cover
Prospective Security Offerings
1
We
and Los
Dev. Res.
Sterling Revaluation".
on
Reporter's
Our Reporter
manner
these
1-3370
Direct Wires
7
_1
Observations—A. Wilfred May
much
Certainly the ultimate
social merit
ity,
not
York 6
Teletype NY
44
fairly
can
have
effective
and Insurance
Mutual Funds
alternative.
no
BO 9-5133
33
News About Banks and Bankers.
impossible to achieve through leg¬
islation.
At
every
hand, it is
plain that the improvements lead¬
ing to advancement have their ori¬
gin in invention and development.
There is
Broadway, New
Bond Issue
Indications of Business Activity__r__—
The
lives
on
From Washington Ahead of the
News—Carlisle
the workman of 1850.
enriched
request
Reilly&Co.
Philadelphia
Paso, Texas
(Editorial).
Einzig—"More
six-
and
resources
brought
workman
many
as
Perhaps
have
American citizen
i
produce
goods
El
Deposits in Mutual Savings Banks Soar
disap¬
through
scene
on
19
Dealer-Broker Investment Recommendations
upheaval, had not
modern machinery, developed by
research, made it possible for the
other countries.
These
the
in¬
increasing extent been
dependency upon the
technology and natural
the
61
18
not
the
in
new
and investment. The United States
has to an
of
was
social
or
14
Strong Position for Mobilization... 16
Regular Features
Canadian Securities
automobile, preeminently a
product of research, has widened
in
created, with
opportunities both for employment
freed
iBank
*
shift and
J.F.
12
Business Man's Bookshelf
by reform or edict, but
by the iron plow, the reaper and
the. tractor.
12-hour
12
__
Coming Events in the Investment Field
the farm
*Circular
11
(Boxed).—
^
As We See It
sewing
banished
The
n«—-ii
*
Associated
\
.
on
^Mexican Gulf Sulphur
33
from
of
the
I. Parkinson
„__
But He Is Right!
Century " servitude by
agitation, but by the in¬
American
A
freed
^Maryland Drydock
22
___
Bill to Revive Gold Standard
on
Program
day week could not have
processes
which
not
in
Firm to Advise
18th
engineering techniques
have been developed on a
large stuffs.
industrial scale, including equip¬
Peasantry
pressures
New York
*Hoving Corp.
21
_
SEC Raises Estimate of 1951
Capital Outlay
ma¬
machine,
the dish washer and the
Frigidaire and the
Bendix, together with
the
revolutionary developments
for handling and
distributing food¬
New
high
Manufacturing Chemists
development.
were
20
Lanston
Inflation—Thomas
*
Foremost Dairies
17
___
Needed—Roy L. Reierson
Inflation—Aubrey G.
Crowell Collier
16
Manufacturing Chemists' Association.
recognize
vention
syn¬
economy.
ment for the use of
high
and
1
Incorporated
New Officers of
com¬
feminist
ceuticals, all playing their impor¬
our
and
Women
their
thetic rubber, films,
dyestuffs, im¬
proved motor fuels and pharma¬
tant role in
we
NEW YORK
WHitehall 4-6551
Canadian Superior Oil
14
__
Chemical Industry's Concern
Regarding U. S. Tariff Policy.__
Urges Hearings
social
Chevalier.
__
application and encouragement of
new
which
gains,
WALL STREET,
Telephone:
13
Winfield————
Chemical Industry Has
High Safety Record
terial, have not been accomplished
by legislation, by deals, old, new
or
fair, but simply through the
the
We
fibers,
has
materials
these
and
H.
Reports New High in
Building Contracts
the
have been
areas
them
11
in—Roger W. Babson
*
munication.
riod.
variety
at
by good roads,
transport and rapid
speed
tinuing stream of new materials
pouring out of the country's lab¬
oratories during this eventful
pe¬
structural
world
dump
9
Program—Col. Willard
Life Insurance
Companies and
grandparents
the
reclaimed
our
The development of plastics
their
in
ward and remote
occasionally felt the sting of
great
out
7
Factors in Evaluation of
Municipal Bonds
—Raymond E. Hengren
grade-school level. The work week
has fallen from 48 hours and
up¬
ward to a 40-hour standard. Back¬
event, the competitive goad
urged us forward
at our backs has
and
we
hope
where
were
99
Industry-^-Benjamin Abrams
Industry—William
eyen
increased by nearly a quarter of
a
century.
American boys and
girls go on to high school and col¬
Greenewalt
we
In any
Treasury Securities
significance to our ulti¬
well-being. Since 1900, for
example, our life expectancy has
com¬
participated
and
has
of
ways
all
Obsolete Securities
Dept.
6
Herzig—
No Further Credit
Controls
progress limited to
comforts—we have gone
other
in
Outlook for World War
it
this
in
S.
Chemicals in the Defense
mate
industry.
panies
unless
success
Calculating Risks
greater
the
chem¬
Many
is
creature
growth,
du
Pont
a
obsoletes
4
Cobleighl
Pacific Northwest Power
Situation—Ernest R. Abrams.—
suc¬
so.
Nor
development
for
accounted
does
astonishing
and
Each
development in the labo¬
ratory has advanced the American
standard of living in some way or
another—in fact, it can
scarcely
"compounds.
The
ensuing
50
Forever—Leonard
Prospects in Television
cessful
organic
marked
steadily upward.
gone
and
1
of
us.
"Trees Do Not Grow to the
Sky"—Nor Bull Markets Last
most modest American home
have
inor-
g a nic
owners
3
The Future of Japan's
Credit—E. J. Speyer..
food,
clothing, shelter and transporta¬
tion, and in ease, convenience and
comfort, the standards of even the
manu¬
was
-—the disgusted and the
disgruntled
on
I
_
"Cheap Money"—D.- W. Michener
The Loan Arrangers—Ira U.
life that would have been the
envy
and wonder of his
grandparents,
two short generations
ago. In
chemical
it
COMPANY
THE DISENCHANTED
—Gordon Dean
research and scientific training is free, the
and improve.
as
AND
1
Producing Atomic Energy—An Industrial
Function
security as well as its contribution to national security.
Points out spiritual progress follows on heels of
national com¬
long
Weber
Cover
in social
as
J.
Company
Leading chemical executive describes growth of chemical indus¬
try in last half century and its beneficial effects in
improvement
fort, and
llCHJfllSTEIII
Page
Plastics and the Growth
Prospects of the Industry
—Paul
Pont de
B. S.
Articles and News
Industry
By CRAWFORD H. GREENEWALT *
President, E. I. du
3
Salle
St.,
Chicago 3, HL (Telephone: STate
2-0613);
1
Bank
Other Publications
and
Quotation
$30.00 per year.
Record
—
Monthly,
(Foreign postage extra.)
Note—On account of the fluctuations In
the rate of
exchange, remittances for for¬
."
eign-subscriptions
and advertisements must
be made In New York funds.
THEODORE YOUNG & CO.
40
Exchange Place, New York 5, N. Y.
WHitehall 4-2250
Teletype NY 1-3236
'
The Commercial and
4
Financial Chronicle
.
.
Thursday, June 21, 1951
.
(2552)
period—nearly
war
The High Cost oi
By
D. W.
Director
Chase
Pointing out
MICHENER*
Research
of
National Bank, New
major financial
as
"Cheap Money"
York
development of recent
decades
expansion of money supply in excess of growth of national
income, New York bank economist asserts "it appears we are
the
use money expansion in efforts to solve national
problems." Estimates "cheap money" policy, through
process of inflation, has resulted in net loss to Treasury, and
upholds ending of pegged rates on government bonds. Foresees
possible further cred.t ^controls, but looks for better bank earn-,
ings and participation of banks in new government financing.
*
still
willing to
financial
our
money
supply
pansion
place
the
past two
taken
in
loans
from
during
the
result- of the ex¬
bank deposits arising
Largely as a
has
which
borrowers,
to
has
developments
would
and
have
been
civilian
reduced.
goods is not going to be
Apart from
caused
ent
policy pursued
money"
policy
recovery,
encourage
crease
was
designed to
and the in¬
always
gold stock
in the monetary
'
The
In the early
furthered the process.
war,
liquid assets in the
the
public, including
the "easy money"
been accompanied.
steps taken by
recent
produced during that
of
array
the
modify
than during any year prior
1950. This prospect, along with
year
to
supplies of goods
the present large
already in the hands of consumers
and merchants, suggests no gen¬
eral
shortage during the next 12
If the threat of all-out
months.
to subside, it may
previous support pattern for
government securities and to al¬ be that purchases by consumers
low higher interest rates to pre¬ will proceed at a more moderate
vail represent a move in the right, rate during the months ahead and
direction.
The full influence of that business, generally, may ex¬
of avoid¬
ing an anticipated postwar
in business,
■.
broad
war
the
policy was
maintained in the hope
a
Federal Reserve Board to
1940's, the objective was to further
the war effort, and following the
private and public
markets,
government controls has been in¬
troduced, with all the dislocation,
confusion
and
injustice
with
which these control efforts have
by responsible monetary authori¬
ties. In the early 1930's, this "easy
generation
spending less, its Judging from best estimates of
interest
costs the current outlook, production of
Also, "by
borrowing
the Treasury's po¬ as sharply reduced as it was dur¬
ing the previous war. At the mo¬
sharply upward revisions in esti¬ sition, the costs of "cheap money"
are
apparent at many points in ment, it appears that; something
mates
of
government spending
our economy.
One "of these is the less than 12% of our*tbtal pro¬
during the next few years.
adverse,
influence
on
personal ductive capacity is being devoted
thrift.
National emergencies de¬ to defense production and, accord¬
Cost of Decline in Interest Rate
mand
careful
and
conservative ing to the Director of Defense
Accompanying the rise in the
spending on the part of all citi¬ Mobilization, Mr. Charles Wilson,
Federal debt since 1929, there has
zens;. but the expansion of money only 20% will be absorbed by the
been a prominent downward trend
produced by "cheap money" pol¬ military, at the peak of the de¬
in the average interest rate paid
icies
has
brought opposite be¬ fense program during 1952. If this
on United States Government bor¬
havior. And, in the face of the re¬ estimate for 1952 is correct, there
rowings. This long-run decline in
sulting difficulties in the differ¬ will still be more civilian goods
the rate of interest was the direct
and services
recent
result of the credit
of bankers, present time is less than two
times that of 1929.
the development in this country
of most
importance is probably
Increase in Money Supply Twice
the
unparalleled
rise
in
the
As Rapid As in National Income
To
lion.
billion
$100
annually—was reduced below $40
billion in 1946-47, the pressure of
decline
continues
this
change
in
policy will, of perience a volume somewhat be¬
T{iese developments serve as course, depend upon later devel¬ low thdt experienced during re¬
deposits and redeem¬
able government securities held, something of a background against opments. The success of the pol¬ cent months.
has had an
which
to observe some
of the icy depends upon whether or not
have expanded to more than four
Prospect of Bank Earnings
important in¬
times the level of 1929.
During major factors influencing banking the policy of withholding Federal
fluence
upon
A third field of special interest
this same period, our "gross na¬
at the present time. Of the current
Reserve credit from
the market
the people of
to
bankers is the
prospect for
tional product," representing the factors influencing banking, the for government securities is con¬
every city and
bank earnings in the near future.
output of goods and services of first, and perhaps the- most im¬ tinued. If it is, further monetizatown- ■ in
the
The fact that bank portfolios of
all kinds, has been multiplied by portant; is the turn of events in tion of the public debt v/ill be
country;
a 1government bonds are worth a
only two
the field of monetary and credit curtailed or prevented. The pres¬
,r
most
every
little less than they were a few
History
makes it., clear, that policy. In recent months, the pros¬ ent unclear course of action for months ago, naturally sharpens
household
when money is expanded in an
pect that government expendi¬ the future is illustrated by Gov¬ the bankers' interest in the earn¬
finds that its
D. W. Michener
inordinate fashion, the behavior tures would be substantially in¬ ernor Martin's recent statement
economic cirings outlook. Operating costs are
of the people is greatly affected. creased
brought the conflict that, "We do not intend to sup¬ still moving upward.
cum stances
>_
This in¬
changed because of the sharp in¬ The "Good Book," you will recall, between the Federal Reserve port the market for government cludes wages and salaries, mate¬
crease
that has occurred in the records the parable of the prodi¬ Board and the Treasury into sharp bonds on a pinpoint peg, nor do
rials, furniture, cost of services,
volume of our means of payment. gal son who was doing very well focus. The Federal Reserve Board, we intend to let the market go etc.
On the income side, it ap¬
on his father's estate until an ex¬
from the beginning, has had the completely on its own."
Because of its great importance,
pears
that the volume of bank
traordinary amount of money Was responsibility for credit control in
it may be worthwhile to review
The Increased Demand for Bank loans has, for the present at least,
suddenly placed in his hands.
It this country. Section 12 of the
the circumstances reading to this
reached
a
peak
and might be
Credit
was
after
this
event that he Federal Reserve Act makes it
rise in the money supply.
As you
tapering off in the near future.
A
second
major problem af¬
The rate of return from interest
know, economic history is replete picked up and took his journey clear that the major objective of
into the far country.
And thus it the open-market activity on the fecting the banking outlook is, of
with examples of the deliberate
being paid on loans is moving up¬
has alv/ays been. The inflation in
course, the trend of business gen¬
part of the System was that com¬
ward slowly. For the banks in 19
expansion
in
the
volume
of
France in the early 18th Century,
erally and the demand for bank
merce and business be accommo¬
money by the different countries.
cities, the average rate charged
credit.
It is to be recalled that,
the boom in England
two cen¬
At the time of the Roman Em¬
customers
is now a little more
dated, and that these operations
one
turies ago and similar periods in
year ago, we were near the
be governed "with regard to their
than 3%, as compared with 2.68 a
pire, debasement of coins was the
peak of a postwar boom, and some
the history of this country are
chief
method
used.,
Centuries
bearing upon the general credit
year ago.
The movement of the
symptoms of decline were ap¬
replete with accounts of unusual situation in the country."
The
volume
of government
later, the printing of paper money
security
behavior on the part of people as
pearing. Then came the outbreak
was
employed. - Today, however,
Treasury, on the other hand, has
of war in Korea.
Following this holdings by banks is a matter
a result of expansion in the money
it is done by a* more efficient but
which can only be determined in
given emphasis to tjie importance
shocking news, came one of the
,;
less obvious method.
The chief supply.
of keeping down interest costs to
the future, and this will depend
Our recent experience in
ex¬
greatest periods of panicky buy¬
means
of -expanding the money
the government.
largely upon the extent of Fed¬
j
ing which the country has ever
supply now is by increasing the panding money has-brought re¬
It is clear, however, that, even
eral financing and the extent to
sults similar to those of earlier
experienced.
The Federal Gov¬
deposit accounts in commercial
from
the point
which such financing can be done
of view of the
ernment,
industrialists, mer¬
times. Prices of goods and services
banks. In making a loan, a com-;
Treasury itself, factors other than chants and individuals all par¬ through non-bankfng institutions.
in this country have been bid up
mercial bank brings into being a
interest costs are of greater im¬
As was indicated earlier, the pros¬
ticipated. Government purchases
new
deposit account,
and < this to higher levels than ever before portance.
The Treasury is the of materials for its stockpile were pective rates of Federal expend¬
experienced. Despite the huge vol¬
new account, when drawn upon in
itures and income over the next
largest buyer of goods and serv¬
Stepped up sharply, so that goods
making payments, adds to the cir¬ ume of funds in the hands of the ices in the American market. For
few years suggest that bank par¬
costing more than $3 billion have
culating media which we com¬ public which came as a result of the Treasury to insist upon low
ticipation in new financing is a
now "been accumulated. Merchants
government borrowing from rates on borrowing, even though
monly refer to as money.
and
manufacturers
rushed
to very definite possibility. .
banks, credit purchases have in¬ the "cheap money" policy causes
Also, ' when
the
commercial
Among other factors influenc¬
stock up with goods and equip¬
creased to unprecedented heights. the
bank invests in government secu¬
general price level to rise, ment as
quickly as possible. Mer¬ ing the banking outlook is the
Consumer credit, as you know, does not
appear to have been a
rities, or, in other words, loans
chants
adjusted their inventory possibility of further government
$20 billion, an amount means of keeping Treasury costs
to
the government, new -deposit touched
controls in the form of new re¬
policy to carry 15 to 20% more
more
than twice as large as the down.
accounts
are
similarly
created.
During the past 10 years,
serve mechanisms and of manda¬
goods, and manufacturers imme¬
volume of brokers' loans in the for
The
fact is, as you
know, the
example, had the Treasury
endeavored
to
expand tory' limits on the total credits
New York Stock Exchange during paid a rate on its borrowing equal diately
major means by which new de¬
extended by lending institutions.
plant capacity to take care of the
posit accounts have been created the 1929 boom. Mortgage debt on to the 1918-25 average, the cost
These are apparently still in the
greater demands. Consumers con¬
in this country during the
past one-to-four-family dwellings has would have been some $43 billion
stage, and definite
centrated the force of their pur¬ "discussion"
On
two decades has been the "loans increased some $25 billion since more than that actual paid.
proposals by the Board in this
chases in two buying waves, the
the war. Total debt in the country, the
other hand, the rise in the
to the government" made by the
first coming after the President regard will porbably depend upon
commercial
banking
system. including the debt of the Federal prices
of
goods
and
services
warned the country of shortages ) future credit developments.
These loans now amount to more Government, state and local gov¬ caused by this "easy money" pol¬
In summary, then, the major fi¬
and rationing on July 19, and the
than $80 billion, a total some 16 ernments, individuals and corpo¬ icy must be taken into account.
development
of
recent
second following the President's nancial
times that of 1929. On the other rations, now stands, above the 500 The
government bought, during
declaration of a state of national decades has been the expansion
the
10 years,
hand, loans,made by commercial billion mark.
some $550 billion
Continued, on page 5
emergency on Dec. 15.
banks
to
As
was
indicated earlier, the worth of goods and services. Had
non-government bor¬
An important question now fac¬
the
rowers show only a very moder¬
Treasury been able to buy
outstanding financial development
ing us is just "how short" con¬
these
goods at 1940 prices, the
ate upward trend during the past of the past several decades has
sumer
goods are going to
be.
been $185 bil¬
decades'.
of
hands
This
.
.
currency,
development
*
-
decades.
•three
l,i.
*An
address
Annual
Bankers
June 9,
The
total at
the
by Mr. Michener at the
of
Convention
Association,
the Connecticut
Manchester,
Vt.,
been
cing
the
1951.
the
increase
in
the
money
savings would have
yfje
supply which has occurred largely
as a result of our method of finan¬
government
deficits.
Established
STATE AND MUNICIPAL BONDS
LOCAL STOCKS
OIL
CORP*
requirements
Common
of the discriminating
York
Stock
Exchange
New
York
Curb
Exchange
Central Location
Cotton
Exchange
Spacious Rooms
York
New
r*
Arid.
of
Cotton
Homelike
Inc.
Exchange,
Board
New1 Orleans
Robinson-Humphrey Company,Inc,"
meets the
New
Chicago
4
Hotel Weylin
Members
Commodity
The
1856
H. Hentz & Co.
CORPORATE BONDS
L€XA
While
peak of expenditures for the
EST. 1894
Offer
Price
yol,r ovrn
Intimate Cocktail Lounge
Exchange
or
*
..
,
ATLANTA 1, GEORGIA
WALNUT 0316
N. Y. Cotton Exchange
Bldg.
LONG DISTANCE 421
Theodore B.
NEW YORK 4, N. Y.
CHICAGO
.
-/DETROIT
" -
"
-
-
-
-
Circe/or from
investment dealer
the
undersrgned
7
Madison Ave, at 54th
"
t
Phone or
write -
CO.
TELUER &
■
Archibald, Manager
PLoza 3-9100
PITTSBURGH-
GENEVA, SWITZERLAND
i' *
Shore
Excellent Service
otheT"Exchanges
For reservations
RHODES-HAVERTY BLDG.
20 Cents per
Offering
Atmosphere
Delicious Food
Trade
Stock
"
St.,New .York 22
,
.
(/■
-• ----- •-
■
•
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2553)
Continued from page 4
Steel
,
The
Production
The
Electric Output
Retail
State of Trade
Commodity Price Index
Auto
Industry
Index
Price
Food
and
of
Trade
still
are
Business Failures
Observations.
"Cheap Money"
of money,
Production
*1
High Cost
Carloadings
r{>
and it appears that
willing to
ex¬
pansion"
J
Hindus
in
the
difficult financial prob¬
the .nation.
However,
more
lems
of
efforts
our
to
Nation-wide industrial output showed mild improvement the
past week from the holiday-shortened prior week. Aggregate pro¬
duction
week.
'.
It
noted that total claims for
was
somewhat
were
with the previous
even
ably lower than
a
It
unemployment insurance
week, but were consider¬
after
a
week of labor
An
directives
surge of
the
,Steel
continues to
terms.
As
raw
to
year
If the
in
look
we
writer
as
we
scare
of
The "Great Idea;
by
modest
Mr.
of
as
for
defense
'uncertain
•
and
what
related
"free"
for
account
tonnage will
up
third
and
be available for the
Goverment
control
authorities
under
are
general
quarter and beyond.
In
number of
a
cases
from
pressure
coverage
; further
from
advices
the
Government the
nomic
Issues
in
ponent elements.
Assistance—The
D.
generally
Mr.
restricting further fourth quarter acceptances of DO orders
military and Atomic Energy Commission account, these being
;the only accounts so far authorized to revalidate defense ratings
Day's Work
'with
;in
CMP
allotment numbers
orders.
new
or
to
CMP
use
Brook¬
6,
Non-military orders that have been accepted
layoffs
"car manufacturers
confront
and
auto
workers
in
July.
Passenger
large parts suppliers will be forced to cut
production because of restricted metal allocations, states "Ward's
/ Automotive Reports." Daily
output rates will be drastically below
present levels, it added, and some plants will be compelled to re¬
duce
payrolls
as
much
particularly hard hit,
.could
as
begin to take
even
25%
"There is
up
to 30%.
no
The Detroit
area
will
be
defense work at present which
the slack," this agency declared.
formation
at
laying off 300 of the 900 employees
its radio receiver plant in Utica, N. Y.. because of
government
restrictions
materials.
on
Nash-Kelvinator
Corp.
was
whole made the cutback necessary.
A
Output Rate Holds Unchanged at 103.2% for Third
Consecutive Week
of
steel supply is getting worse and will continue to
grow
critical in the final months of this
year and the first quarter
1952,
weekly.
.
according
'
to
"The
Iron
Age,"
of
New
United
States
and Hans
on
Policy
—
the
for
Chester
Bowles
Kohn—Citizens Confer¬
International
Economic
Union, 80 Lexington Avenue, New
York 16, N. Y.—Paper.
How
Can
Pay for Defense?
fairs
Committee, Inc., 22 East 38th
Street, New York 16, N. Y.—Paper
—20 cents.
national
metalworking
the
spurious Marxisc theories;
that planning
a
It effectively scotches the basic Marxian theory
Poverty-Stricken Pari of "Womvorld"
a
„
the dictator of Wonworld, about
his
moned
;
Because of his
understand
from his
Pe
son
Uldanov
or
take
to
over
to
die, has
as
his
sum*,
successor.-j
"faulty" education, Peter is ignorant and does not;-
Wonworld
father, he
economics.
But
taking
on
over
the reins
the collectivism system
fails to work, and voices a host of objections. Despite the situa¬
tion that the prior elimination of all bourgeois Capitalist institu¬
soon comes to see how
tions had created the
theoretically perfect setting for communism,
slowly but surely driven.;
nevertheless Peter and his colleagues are
by the practicalities to adopt one-bv-one the methods of private1
and the market economy.
In
periods
Modern
Controls
—
Wonworld, hislory has been divided into three great
by her writers: Ancient History, the Dark Ages, and
History. Ancient History is depicted as all that period, i
which
of
practically nothing is
"amusingly" called in
was
now
the
known, that came before
Dark Ages the Industrial
Policy manual
Hirsch
and
Continued
on
page
William
Casey—Business Reports, Inc.,
225 West 34th Street, New York
1,
N.
Y.
—
Loose-leaf
binder
form
iGiaetive Issues
—$12.50.
■
Automobile
producers may be forced to cut back production
.further in the third quarter. They won't do so willingly, so when
rtheir production drops it will be all the
more significant.
The rea¬
son for their cutbacks will be a lack
of critical metal items,
ticularly alloy
bars says that
and
more
carbon
bars.
A leading producer of carbon
than 90% of his output will be controlled in
Continued
on
page
of
Largest
Manufacturer
Display Equipment"
It's
L. A.
41
Darling
Order
Backlog
securities.
85% Are
Defense Orders.
MR. HENRY B. GERSTEN
Right
We
has become associated with
our
on
firm
Request
Midwest
Detroit
WHitehnll 4-2250
find satisfactory markets in
of
amount
business
in
that
be
.
care
how small it is
market exists,
a
you
.
think
we
time, trouble, and
as
we
.
.
we
.
how
can
closely it's held.
find it
.
.
.
think
we
can
save
expense.
said before, just try
us!
■
-
-
'TradingDepartment.*«•
Members:
THEODORE YOUNG & CO.
Exchange Place, New York 5, N. Y.
to
fair
a
though, we'd like to talk about inactive issues.
now,
may
We don't
But
Moreland & Co.
anybody
done
sticking our necks out, of course. But we've got
enough honest faith in our 50,000 miles of private wire and 100
offices
enough belief in our perseverance and experience to
ask that you try us just once — to call us first, next time you want
a buyer or seller for some
inactive issue.
If
Information
for
We've
field, ourselves.
.
$6,000,000.
pleasure in announcing that
difficult
too
not
active
Approximately
We take
Harder!
are
"World's
par¬
40
com¬
Hazlitt
Stalenin,
what
Julius
if
even
capitalism
We
—Maxwell S. Stewart—Public Af¬
—Dr.
that
J.
The
more
—
the
Department,
Bank
Constructive
Price
Steel
A
of
Atom Bombs Are Not Enough—
;
scheduled
to slash refrigerator production on Monday of this week about
:25%, idling 900 of the 4,000 workers at its Grand Rapids plant.
The company said its own stocks of
refrigerators are about normal
for this time of the year, but high stocks of the
industry as a
York,
work
Federal
York, 33
Liberty Street, New York 5, N. Y.
—Paper—No charge.
'
' '
ence
The General Electric Co. is
New
the
Federal Reserve Bank—Public In¬
are
Reserve
Extensive
at the Federal Re¬
of
Description "of
allotment numbers
being returned to customers.
Bank
serve
thesis
convincingly "sells" these sound conclusions by,
basing his story on the supposition that the whole world, excepting
only the island of Bermuda, has been conquered by the Com¬
munists, who now, in the year 2100 by the Capitalist calendar, or
282 in the Year of Our Marx, run things completely their own.
Marxist-Leninist way from Moscow, capital of "Wonworld." Life
is completely regimented, with no one
daring to speak his mind
'under the ruthless, corrupt and intriguing dictatorship." America
has become a weak poverty-stricken country, with a severe famine
raging in Kansas.
"are
to
the
that the quantity of labor involved in the production of anything
is the sole factor contributing to the value of that product.
Foreign Eco¬
Institution,
Washington
C.—Paper—$1.
the
in
embodies
free market to guide production ancl
distribution decisions, and the incentives from private ownership,
would inevitably run itself into the ground; and that if capitalism
did not exist, Socialist planners would inevitably be forced to
embrace it through the successive adoption of its individual com-r
Foundation
ings
Pending
the author's 'brilliant economic exposi¬
unhindered throughout the world, it cauld
ensuing disillusionment would finally de¬
functioning of
America
Current
spot steel supply as¬
steelmakers
and
without the
Battlefield—
—
on
work
spread
credence
all
into the fourth
sistance prior to the effective date of CMP is sought.
Hazlitt's
were
survive
molish
Education, Inc., Irvington-on-Hudson, N. Y. — Paper
—No
charge for single copies;
quantity prices on request.
consuming market.
"consuming directions for forward supply
Read
'
for
Mr.
for Economic
still
are
the
on
some pretty
success iri composing an opus
exposing vital truths to the "mass market," of the
former, without too seriously lessening the profit to the initiated.
Bookshelf
E.
story flavored wrh
The net result nevertheless is
not
Leonard
$3.50
addition
Hazlitt's
a
as
arxious to concentrate
tion.
the switch
quarter
off
munism
Conscience
a
dragged-in
A. Wilfred May '•
sex
assuredly does not
consistently absorbing Koestler, "Darkness at
Noon," for the completely uninitiated fictie-n-loving lay public.
On the other hand, it is somewhat
distracting to the expert reader.,
Man's
—
Ap-
374 pp.
obviously
Henry Hazlitt
suitable
production schedules
novel
intrigue and
to the Controlled Materials Plan
busy lining
a
Hazlitt.
old-fashioned Muscovite
material shortages and scattered
Mounting uncertainty is evident in steel markets
of
Henry
York.
Business
distribution nears. Considerable
administrative detail remains to be worked out before the effec¬
tive date, July 1. Mills are
uses
pleton-Crofts, Inc., New
come
disturbances.
In May, a
record 9,094,000 net tons were
produced, topping the previous high monthly output mark set in
March this year by 23,000 tons.
One
the
offering his
latest work as a novel,
device
decade of the 50s.
near-
field
in
Lessonetc.),
further into the
move
his
("Economics
ones, but that we, in the bank¬
ing profession, are in an interest¬
ing and vitally important busi¬
ness
in
we
the
to
and
busi¬
war
more
per¬
clearest
contemporary
boom.
a
although
the
simplest
r^ie
ago,
of
haps
labor
.t
Hazlitt,
-keep
future,
it is clear that the problems fac¬
ing the banker are far from easy
And indications
from the nation's furnaces in
pour
we
must think
we
volume
scrap
record volume in the face of
A
peak
buying.
subsides,
yards will be forthcoming soon
with collections falling short of expectations as industrial volume
slips in step with declining civilian durable goods manufacture.
on
the
that
government
on
parcel of this capsule reading era is the constant
complaint 1hat writing on economics—particularly of the realistic,
kind—is too dull and obscure for
popular public consumption.
Apparently in acquiescence to the need for sugar-coating, Henry
came
ness
more
in
and
international develop¬
ments which caused an, enormous
shortage is shaping up, threaten¬
ing continuance of the present above-capacity steel production
pace, says "Steel," the weekly magazine of metalworking.
Not
only is the volume disappointing, but quality of material often
is not up to standard. While tonnage is moving
steadily into con¬
sumption from scrap yards and other sources, the flow is insuf¬
ficient to permit replenishment of shrinking mill inventories,
which, in some cases, are the lowest in years. Normal inventory
is considered 60-90 days. Some producers' stocks are down to six
days.
are
process
relative
cycle.
at
Then
scrap
A growing number of steelmakers
depend
allocations to sustain their production schedules.
this
Part
•
perspective
were
disruption, and by Studebaker, whose output
by shortages of materials.
increasingly critical
of
important
business
capacity held last week at 103.2%, unchanged from
the previous week, while automobile and truck output rose sub¬
stantially following the return by Chrysler to full scale operations
had been held down
is
our
Steel ingot
'
termination
a
the future.
ago.
year
policy has recently under¬
changes which might herald
gone
noticeably above the level for the corresponding 1950
rose
A "Darkness at Noon" of Economics
solve
credit
ft
By A. WILFRED MAY
we
"money
use
1051
Stock
Stock
Exchange
Exchange
Penobscot
Building
DETROIT 26, MICH.
Teletype: NY 1-3236
Ba y
City
5-
Muskegon
Merrill Lynch, Pierce, Fenner & Beanb
70
PINE STREET, NEW YORK 5, N. Y.
Offices in 97 Cities
>
39,
Financial Chronicle
The Commercial and
6
.
.
Thursday, June 21, 1951
.
(2554)
favorable. You may have a lot of
U.
IRA
By
To Make
"How
or
of
poison, but companies like House¬
hold do all right.
Its worst year
was 1933 when it wrote off 5.86%
f
customer
of
Providing
5
loans to millions of our
that make them, fare.
insight into personal
some
citizens, and how the companies
of
us
get shy of cash once
creeping
hind
be¬
of¬
breaks
about
Household for over 21
less than 1% loss—a
truly remarkable showing.
years
ilies
each
the
with
ington and the East.
have
year
fice desk,
Well 20% bor¬
money?
to pay
row
away over
hot
a
tip
at
and,
this
the
put
Ira
Cobleigh
U.
bite
for a
couple Of fins.
on
your
for
law)
$200.
ove;r
loan
in¬
reasonable operating
Under
—
moment, is on
the
prowl to
York
(New
from
biggest
ones
We're talking about
was
(and is) a country-wide need
loans; and second, that
small
for
such loans could not be
at
profitably
le¬
prevailing maximum
Don't
is
get
collateral—it
such
hot
it
would
and
to possess and
more
than
ture
almost
the
loan
medium
ment
isn't—
always cost
and
for
tested
income
through the years.
the top four shares:
growth
sell the furni- Let's
scan
r.
if
finance com¬ ment of better earnings and divi¬
"V/..
t*
indeed
impressive •— dends.
billion dollars (in 33
year. Through no fault of his own, roughly a
(2) Beneficial Loa'n is reputed
the borrower fell hopelessly States); while commercial banks to be second largest in the field
supply another two and a half and its common sells at 25 yield¬
among vultures.
yes—but he paid interest
of
rates
from
120%
.to
250%
a
total
for
personal
is
panies
billion, and credit unions and in¬ ing 7% on the basis of 1950 divi¬
Sage Foundation
dustrial banks three-quarters of a dend of
$1.75/ Unbroken dividend
that, while small loans
billion more. Small loan3 add up record here
goes back to 1929.
were, beyond question, costly to
to big banking.
process,
legal lenders must be
(3) American Investment at 18
created
to
handle
Perhaps the best way to get the yields 7.20% on 1950 rate and has
them.
The
rundown
on
"doin'
what a
Foundation
drew
up
a
model real
20-year dividend record.
standard small-loan law, and took comes personally" in the diminu¬
(4)
Seaboard
Finance
at
19
tive debit business, is to look at
aggressive steps for its adoption
yields 9ya% on its current divi¬
results
of
the
oldest
and
This legislative the
by each State.
dend of $1.80. It's smaller than the
program turned out to be highly largest outfit in the trade—House¬ others with dividends
dating from
successful, with the result that hold Finance:
1944, but growing fast!
33
States
legalized
small
loan
An investment package in this
Yr. End.
Aggregate Average
companies to grant personal loans,
12/31
No. of loans
Bal. due Loan bal.
So this Russell
determined
-
and
It
send the loan
may
field
shark offshore.
sound high
to you,
1945
but
to
personal
credits
of
from
$50
$150 to needy borrowers, an in¬
terest
536,280
1949
1,064,332
$76,060,345
207,125,905
would look
like
this:
$142
195
Current
Divi-
practice has shown that in dishing
out
From
this, it's
expansion
Loans
are
phase
to
easy
of
grasp
small
the
loans.
growing in number and
s
•
-
*
Cost
?
1 share Household
35
—
1 share Beneficial
dend
;
$2.20
25
—
1 share American
of
2%
a
month
just size
and
loss
experience
is
most
1.75
•
18
1 share Seaboard
1.80
$7.0J
—
best
of record only, these }{otes having
placed privately by the undersigned. -
if
So,
Similarly, you hear none of the jibes or wisecrack# or dis¬
of Generals MacArthur and Wedemeyer. This par¬
ticular State of Nebraska is Wedemeyer's native state. Anyhow,
I think there is little doubt that they v/ould both out-poll Truman
a popularity contest.
citizens, indeed.
in
This
writer
$3,750,000*
It
James Talcott, Inc.
37/s% Subordinated Notes due June 1, 1961
*$3,375,000 has been borrowed by the Company. The balance
may be taken up by the Company on the terms and conditions
set
forth in the Loan Agreement.
The
loan
white
horse
to
ample
do
or
Co. Inc.
need
Indian
an
justice
a
guide
borrower
to
The best issue for any
politician out here would be economy
ought either
Korea, or withdraw. The ;
Republicans war mongers
has simply not caught on.
This does not mean, either, that the
prairies are on fire for the Republicans. They are not Republican
conscious or party conscious. But to say they are critical of the
crowd in power is to express it mildly.
r
:
I sat with a group of people, refined and conservative, as we
listened
to a Washington commentator disparage
Senator Joe
McCarthv. It is not likely that this fellow's sponsors will sell their ;/
product to this crowd. They are not the kind of people to ?o for
General Wedemeyer's statement' that we
ment with
proceed in a way to win the war in
Administration's attempt to make the
to
Exchange membership of the late
Demuth
and
will
be¬
in
Townsend,
Graff & Co., 15 Broad
Street, New
a
partner
York
City,
York
Stock
members of the New
Exchange.
.
.
blatherskite, which is what the commentator was characterizing
It is that they think he is doing a good job. He may
a
the Senator.
be
pain in the neck to the global
he is viewed with respect.
a
here
thinkers of the East but out
hearing most about for the Republican
is Senator Everett Dirksen of Illinois.
He is not being considered in preference to Senator Taft but there
is a feeling out here that the Ohio Senator will not run because
of the health of his wife. The fact is that Mrs. Taft's health has
The
;
man
Presidential
you
are
nomination
greatly improved; she is now visiting around. But more impor¬
she is a woman who, regardless of the Senator's feelings,
would never let him forego a campaign because of her health.
tant,
I
.
have
backers
let-down in the activities of the Senator's
the feeling out here that he will not run, but
exists,, and perhaps his friends should get busy to
seen
feeling
dissipate it.
The
no
to justify
<
.
•
aopeal of the Illinois
impression of rugged,
spending.
r
.
Senator, aside from his personality,
aggressive honesty which he gives, is
the Senate against Federal
fight since he came to
He is not trimming sails as some of the other economy
He wants to cut—period. And you don't have
advocates are doing.
to be out
here long to. realize
that he has a vote-getting issue.
DeGourcy Taylor Is
With dnPont, Homsey
Chronicle)
BOSTON, Mass.—De Courcy
Taylor has become
du
L.
I were
government, the cutting down on Federal spending. "We've
got to quit giving away so much money abroad," is a statement
you hear on every hand.
I have yet to hear a single disagree¬
L.
associated with
Pont, Homsey & Company, 31
A. Shaffer on June 21
acquire the New York Stock Milk Street,,members of the New
Admit
Harold
Robert
If
in
(Special to The Financial
to
experience.
my
of the Republicans.
the ineptitude
on
and investor alike!
come
Jure 20, 1951
don't
arrangers
with
I would urge against his proposed barn¬
knowl¬
edge, and the essential financial
integrity of our fellow citizens.
will
&
technical
Townsend, Graff
I
F. Eberstadt
funds,
And it was the
storming tour. The fact is, I think, that the President bases too
much of his reelection on his own campaigning and not enough
and
are
jibe
doesn't
certainly
of Truman's advisers
one
the
sets
National Committee, but it was the unanimous
which I have been traveling.
realistic men.
country through
his continuous
finance companies. Their best as¬
* {
present at the recent Denver meeting
not
confidence of very
we
an
They are both looked upon as very good
report of observers who were there that there could be no mis¬
taking the Democrats' confidence about this very section of the
are
taxes, then, in our
things, we must reserve
important place for personal
was
of the Democratic
by saying that, while
the* only things certain
"debt"
'
interest in the professional as¬
paragement
>adage
scheme of
possibly because his
foreign policy to these people.
the
can
situation,
thorough or efficient in their pot-shot
pect of how he performed, or the lack of performance on the part
He simply hasn't made sense of the Administration's
paraphrase
we
bad
a
of his critics.
live,
been
of
Out here there seems to be no
the
This advertisement appears as a matter
admission on the part of critics of the
Republican critics were not
questioning.
1.30
19
$97
rate
Carlisle Bargeron
But
is worth.
chair is
morris
the
,
money,
handled himself before the Senators;
Ad¬
ministration's foreign policy that he made the
retary
are
(1) Household Finance common
pledged, it' sells around 35 and with a $2.00
gal rates of 10% or 12%. What
gives a good opportunity to in¬ dividend in 1950 yields 6.30%.
really happened, in those rugged
vestigators to look over a home—, Dividends have been paid faith¬
days of 40 years ago, was that "if
to "case" the personal credit risks
fully since 1917, including extras
a guy needed a fast
100 bucks to
involved.
along the way, and management
pay a doctor, to buy medicine, or
While
the
send a sick child to Saranac, he
average
individual seems highly competent, in loan
small loan today is about $200, the selection, as well as in develop¬
went to a loan shark. He got the
made
liking.
East, there seems to be considerable
for the skill with which the Sec¬
In the
admiration
whose stocks are
small loans
out of them. I believe I can accu¬
that this is not the reaction of the
While I have not attempted
say
man-in-the-street survey, I have talked
exhaustively with men whose business jt is to
know what this man in the street is
months away.
the idea these com¬ the fact that the executive doesn't
want his regular bank, or associ¬
-—not mink-coated RFC advances, panies are working for peanuts—
or colossal corporate credits.
Top far from it! Why one American ates, to know he's hard up; others
come
because they're customers
figure
in this personal line is family out of five is going to lodge
from less palmy days, and they've
usually around $500 — in some an I.O.U. with some personal loan
learned how easy and quick it is
office this year. To get the dough,
States only $300.
about half of the time only sig¬ to get short-term money this way.
•'
It all began about 1910 when
So
small
loans
serve
a
vital
natures are required—sometimes
the Russell Sage Foundation made
just the maker—other times man need, do it efficiently and profit¬
a
deep study of debt among the
and wife.
Perhaps 20% of these ably and they offer a commodity
low men on the financial totem
loans
are
secured by chattels— that is forever in demand—dough!
pole.
The
Foundation
reached
like furniture. Not that furniture They also provide a valid invest¬
two vital conclusions. First, there
J
ap¬
any
an
panies, some partnerships, but the
different
Mid-westerners.
buying an easel for a paint¬
hobbyist, to staking a sick
While the average borrower has
corporations
publicly held and an income between $2,000 and
everybody's
business,
but not listed on the Stock Exchange— $4,000 a year, loan managers are
such as Household Finance Corp., occasionally surprised by the loan
everyone is as clever at making
it pay, as the leaders in personal Beneficial Loan Co., American In¬ application of a high-salaried ex¬
finance we shall review today.
f vestment and Seaboard Finance. ecutive. This seems to be due to
is
debt
Yes,
rately
rates like the above, over
ing
6,000 licensed loan outfits are nOw dachshund to a tonsillectomy! Fa¬
loaning dollars in the 33 reg- vorite American repayment date
uated States. Some are local com¬ for
an
instalment
loan
is
18
terest
values,
.
monkeys
include everything
purposes
different
impression in the East, from the press and the
general atmosphere, that Secretary of State
Acheson has bowled over his critics, made
and other
for another 22%
count
ing
here
cut
praisals seem to be applied to them.
The
emphasis is different.
For example, one would get the distinct
off a lot of little Items
hid¬
—debt consolidation, it's called in
their
licensed
small
loan com¬
the trade. The next largest group
ing from your
around 3 to 3x/2%
per —18%—use the money for med¬
Cousin
Louie panies
who's just had month on the first $100 loaned, ical,
dental
or
hospital
bills.
about 2% on the the next $100 and
a tough day at
Clothing, repairs and travel ac¬
Belmont slav¬ often as low as 1% or even V2T0
your
Or rather, there are the same happenings
but
need foh*
funds and what do they do
extra
pervisory bodies are required. For
this
reason,
most States
allow
of
9,000,000 fam¬
some
come
has been traveling through the Mid-
writer
week and he gets a strikingly different impression
what is happening in the world than what he gets in Wash¬
West the past
was
How
the News
By CARLISLE BARGERON
OMAHA—This
average of
even.
thorough reports to State su¬
and
Ahead
years
whatever, and the
write-offs
net
Best
notes.
Washington
1936, 1945 and 1946 with no
were
Investigation
in a while.
Uncle Sam.owes 257 is costly, legal advice is seldom
billion, we rue the rubles we ad¬ free, and jogging up the slovenly,
is expensive.
Further bookkeep-.
vanced to Russia, and right now,
you may be ing and records must be complete,
All
From
regard an advance to a
may
friend, down on his luck, as sheer
Street And Keep It
Killing In Wall
a
and
COBLEIGH
Author
in your desk drawer,
bum I.O.U.'s
The Loan Arrangers
York and Boston
Stock Exchanges.
Taylor was formerly associ¬
ated with Richard J. Buck & Co.
Mr.
and
Raymond & Co.
In the past
partner in W. R. K.
& Co. -Of New York City.
he
was a
Taylor
Francis W. Roth With
Smith, Moore & Go.
(Special to The Financial
Chronicle)
Francis W.
Roth has become associated with
Smith, Moore & Co., 509 Olive
Street, members of the Midwest
Stock Exchange.
Mr. Roth was
ST.
LOUIS,
formerly
Mo.
with
—
Merrill
Pierce, Fenner & Beane
thereto
was
an
Wibbing & Co.
officer
Lynch,
and prior
of
O. H.
Volume 173
Number 5022
.
The Commercial and Financial Chronicle
.
.
(2555)
;4
may mean
The Future of Japan's Credit
By E. J.
A
period
Speculation
has
in
Europe,
the
The
the
to
as
Japanese
following article
debt.
standing of all of them has been
irremediably
expresses
views held in the
City
don, where
are
loans
LONDON
;
This
Credit"
and
Japan's
Foreign
it
is
article
Future
not
of
"The
is
Future
1
One
to
,
in
long
the
,
:
bondholders.
The
Japanese
E.
according to
J.
are
here
in
but,
ask
we
London,
Americans? It
seems
ports reaching
us
to
if
us,
re¬
from New York
Washington and from Ameri¬ .to
circles
we
un¬
herself
off
from
capital markets by
the
re¬
a
obliga¬
Tokyo
commit¬
prewar
letter—were able to
successfully
to'., the
join
New
of
queue
be faced with
first-class
^
soon
obligations rthe pockets of the American tax¬
while the largest and most
payer. This would only be true
power¬
creditor
nation
Japan's
American
(which, how¬ .if
advisers
ever, is not the largest holder of would by a foolish debt
policy
Japanese prewar loans) may use prevent
Japan " from
obtaining
its power to induce
Japan to alter j loans from the world's investors.
unilaterally the contractual terms Far from being a charge on the
of her prewar debts. :
, American
taxpayer, the resump,
f
•
.
tion of Japan's debt service at the
•contractual terms would relieve
Prewar Debt Not Large
*
bonded
him
in¬
prewar
debtedness is not very large either
in
terms
of
population,
give
up
debt
head
it
to
whilst,
of
per
because
Japan
if Japan
r
of
precentage
in
or
which
rect
Henry B. Gersfen With
Theodore Young & Co.
by the group of bankers
will
eventually
be
enissues. Sub¬
new
fulfillment of her contractual
the new issues will
he made/. In
..
worth
of
resumes her debt
same, is
true
of
problem
connection, it is
mentinnincf
Sterling loan
fa?
country
tHut
the
rfeht
vulner
more
able: than
Japan, stands in London at about
95; there can, therefore," be/little doubt that a 5%
Japanese issue would be well re-
service,
£20
a
this
while
Siaro 4%
mil-
lion, equal to $56 million, capital
sums
of
loans already matured,
Japan would thus be faced with
ceived,
the
would
be
more
so
payable
income tax
of
raising $216 million
jn
addition
to
$13,200,000
for the first year's
interest.
to
interest
as
free
of
U.
nonresident
K\
hold-
Japan's annual interest bur-
ers.
(This
$2,800,000 than
figure given earlier as inter-
Henry B. Gersten
den would then be about $23 million to $24 million, which sum
would be increased from time
to
time by capital amounts
item is smaller
by
the
that
obligations,
Japan
the
be
to pay the
existing bondhelp of a credit
the
trusted with the
Practical Suggestions
thq beginning of this article
estimated the accumulated ar-
The
would
to
sequently, when Japan's credit
will be
high, thanks to the cor-
our-
rears of interest
at $160 million,
These are, in
principle due as soon
as
with
granted
In
change
the
would
borrow
enable
freely
money
is
forced
to
re-
The
reserves.
problem
Theodore Young & Co., 40 Ex¬
change Place, New York City,' an¬
nounce that
Henry B. Gersten has
and
as
is,
solution
however,
in
of
really
the
might
ordinary
be
..even
place
Japan
way.
able
in
the
be
any -doubt
has
tractuai
in
past.
made
fulfillment
debt
be offered cash
payment
can
that
a
once
ternative, all
beginning
of
service
her
she
ling
is-
5%
a
of
insofar
London
raised)
as
rate
con-
can
(subject to Treasury consent, which is likely to be
given as really no new
money" is
being
well
such
as
the
ments.
It
action
original
is
must
the
loan
quired
with
sterling"
saying
honor
all
,
(No
with
existing
switch
all
be
The
can
called
of
of
arrears
of
such
to
?
unilaterally,
caiL;plaurt
as
80
never
10
take
par¬
and
are
Partners
Woodward, Francis
local
se¬
Malccjlm
C. Rogers
and
ox\v'
previously associated with Henry
Arthur
J.
Zuber.
All
were
Dahlberg & Co.
T
Mascn Gov. of Assn.
even if she
under presregain
Of
her
interest and of,
debt service, she.will not' capital already due in respect of f
able
to
A similar transac¬
borrow.
Thus
the sterling loans.
Alameda
pre-
®re^,t ®1|?ier for her trade or for
he5 Publ,c financcVt
a
East
'
^
ac-
within
proceeds
*
22
underwriters,
curities.
C.
0/J
® other hand, Japan
Ja- were to aitcr her contractual ob-
sterling;
loan, would be sufficient
care
be
wj!
jf
f ®
at
at
as
«,
JJr
iJer\- u*
fL
i ®,r
of
.
so-called
offices
Woodward,
been formed-
industrial, railroad
cur-
the
for
obtainable
sterling loans
can
years.)
qualifies
—
ticipating distributors and deal¬
ers
in municipal,
public utility,
agree-
...
Ariz.
Street to act
loan
nonresidents
area
discount.
panese
they
by
sterling
"switch
25%
thereby
•"
with
possible
without
goes
Japan
.
acquisition
TUCSON,
loans, ster- Rogers & Zuber has
as
_i.
and
al-
an
dollar, bearing a
interest higher than
5%
under
that
prewar
as
at, or: rency clauses.
near, par, especially if this loan
T
.ZZ/j'
Z..
If Japan's settlement of
is nonredeemable for at least
her
10
years
Zuber Formed in Tucson
would
There
[ duce her
Exchange Firms
Lloyd W. Mason, partner Paine,
Webber,
York
Joins
Goodbody Staff
production, her exports, or her ; be
(Special to The Financial
budget. According to the Foreign American taxpayer will have to tion could be made in New York ?
Chronicle)
in respect of arrears of interest on I
Bondholders' Protective
Council go on subsidizing Japan indefi¬
ST; PETERSBURG, Fla. — Edttiwuuiiu
dollar loans.
in
New
<
T:
Possibly even part f
York, Japan had out¬ nitely.
' ; •'
of the money destined to
pay off
d
Dunn has become assostanding at the end of 1949, £71,Debt Service and Marshall Aid
arrears in London could be
raised' ciated with Goodbody & Co., 218
169,000 in sterling loans*; Fes. 579
in New York as well.
/ But the argument is wrong for
million in French franc
Beach Drive, North.
loans, and
other reasons as well. Over the
$67,600,000 in dollar loans; or, con¬
/last 10 years half the world has
verted in dollars, about
$268 mil¬
secured
lion all told,
essential
imports
of which sterling only
This announcement is neither an offer to sell nor a solicitation of
with the help of
loans would represent about
offers
large scale as¬
74%.
her
Woodward, Rogers &
to
convert,
simple/ The" world seerfis to have> with" the
voluntary consent of the
forgotten how such problems were
bondholders, who'of course
*
!
Japan's
we,
c„
sue
f
fulfill her contractual
ful
bound
-
the
this
borrowers?
correct,
are
their
We have heard time and again,
the paradoxical situation that a ;.the
argument that Japan will be
debtor nation, Japan, „wants to fulfilling her debt service
out of
may
is
selves.
and London markets, .viz:,
solved
Australia, Netherlands,, and Nor¬
hardly
way. Why should Japan,1 a great
Japan
commercial nation, not be allowed
with
'
the
can
in
easily
York
our¬
are
and
that
cut
appeal
of this
aware
in
invest,
-
to
ments to the
Speyer
reports,
selves
to
to
the
category of these
Latin-American
semi-defaulters
fulfilled
themselves,
all
tampering holders
rights
due
7
become associated with the firm
in est would no longer have to be when
they fall due. These could
where he will specialize in
Japan ought to think twice before paid on £20 million 5%
special
sterling be taken care of either by cash
loans as soon as the
situations. Mr. Gersten was for¬
they; use their power to induce
capital sum payment
outright, if Japan is
is paid
Japan to take such a step.
merly a partner of Hettleman &
off.) Japan obviously can- flush with
* ■"*■
money, or by the pronot pay these
Co. and more
recently was with
large amounts with- ceeds of new loans which
In this connection one might
Japan, Gersten & Frenkel.
out
divesting
herself
of
the once her
point out that in the postwar
standing as a debtor is
period only a few nations—which larger, part of her foreign ex- reestablished, will be able to
more
than
run
their
tions. American administrators
credit
the
-
authorities
duction of her contractual
stands
to lose
A:
therefore,
can,
world's
delicately
handled, it is
which
S.
public
.
join
and
is
not
Japan's
U.
derstand that Japan does not want
pre¬
o a n s
own
La tin-America.
of
Japan's
by
their
of
because
author's opin¬
ion that if the
war
fundamentals,
we
sequence
amounts
.
the
made
the
problem
which
contractual
con-
of
being able to appeal,
foreseeable future, to
the private capital markets, not¬
withstanding
the
exhortations
Japan's
Loans"
None
est chance of
within
held.—EDITOR.
—
"The
damaged.
these countries stands the remot¬
of Lon¬
of Japan's pre¬
most
war
headed
sequences
far-reaching
.
future
prewar
The
what backward countries has been
to
have.
Our
Whole system .is
eased to a moderate extent—the,
based upon the
maintenance -of
real
burden
would
have
been
contracts and the
honoring of obeased anyway by the rise in com¬
ligations.
If we
give
up
these
modity prices — but the credit
of
time.
rife here
been
apparenty do
clearly and certainly do
Japan would first have
realize the
with
treaty with Japan is
likely to be concluded within a
and
not
SPEYER
peace
reasonable
of
not think
well but
Jackson
&
Curtis, New
City, has been appointed
Governor
of
the
a
Association
of
Exchange Firms to fill
an
,
^
,
^
_
^
u
Stock
existing vacancy, it
was announced
u
-
June
14
to
any
by Joseph M. Scribner,
Singer, Deane & Scribner, Pitts¬
burgh, President.
.
.
Assuming the
these
loans
interest
average
to
be
as
high
as
on
6%
(the average is probably lower)
this would mean that
Japan would
have to raise about $16 million
sistance from
Does
this
the
U.
S.
that
half the
world should in
consequence have
defaulted
The
taxpayer.;
mean
'NEW
of these securities.
ISSUE
its
external obliga¬
Why, if this is the logical
conclusion, has the U. S.> Governon
buy
offering is made only by the Prospectus.
tions?
an¬
120,000 Shares
nually for interest payments un¬
! ment allowed
der the
Belgium to pay in¬
existing contracts, not a
heavy burden for a large modern terest on her prewar loans at
industrial and commercial nation. rates varying between 5 and 7%;
; Denmark
between Wz and
What would Japan's
6%;
saving be if
Finland
the rate of interest were to be
between
5
and
cut
6%;
down
France, until 1949, when she paid
even
to
3%?
Exactly $8
off her loan, at
million per annum. The
7%; Ireland at 5%;
Japanese
are right
in saying that this sav¬ Norway at up to 4%%1 Czecho¬
ing is not worth the price they slovakia, not so long ago our ally,
would have to pay in loss of in¬ at 6%; and Australia at rates be¬
National Tea Co.
.
tween 4%
ternational credit. As
regards the
arrears
of
interest, amounting to
date to, say, another
$160
on
the
entire
external
later
this
paragraph
be
can
will
dealt
million
a
how
(Convertible
same
for
allies
*
for ex-enemies? In
Countries
-
We
with
in
Britain
have
due
dollars
watched
number
of
debt
made,
American
resulted
tal
settlements have
mainly
with
countries,
Latin-
which
have
in the reduction of
capi¬
as
in the case of
liability,
Mexico,
or
of interest
as
in almost
all other
cases, to a maximum rate
of 3%. It
of
these
is true
dollar
that
the
burden
out
ultimately have
may
of
Marshall
economically still
in
respect
of
loans
clause.
some¬
with
a
Share
•
Copies of the Prospectus may be obtained from the under¬
signed only by pet sons to whom the undersigned may legally
offer these securities under
applicable securities laws.
repayment although the
with which this has been
Aid.
come
This
is as
it ought to be. Measures to
over¬
come the economic
consequences
of
war, especially as an insurance
against the spread of
communism,
are
temporary measures, while the
Hemphill, Noyes, Graham, Parsons C& Co.
Merrill
Lynch, Pierce, Fenner & Beane
Blyth 8s Co., Inc.
The Fiist Boston
Eastman, Dillon 8b Co.
Corporation
Glore, Forgan & Co.
laws
governing international
credit,
although
not
eternal,
should
so
be
long
regarded
as
our
as
Goldman, Sachs 8b Co.
democratic
and
Smith, Barney 8b Co.
capitalistic system is regarded by
majority of our peoples as
better than
know of.
be
other system we
We should not let them
Union Securities
any
undermined
by
people
who
Harriman Ripley 8b Co.
Kidder, Peabody 8b Co.
Incorporated
sacrosanct
the
*Adjusted
fixed
done
some
anxiety the changes in
American policy towards debtor
nations during the last decade. A
been
for
„
per
Price $101 Per Share
nothing of
receiving
ing interest, dividends, and capital
Changes in American Policy
$100
fact, the U. S.<
has done
the
kind.
before December 31, 1961)
and
Marshall Aid have continued
pay¬
with.
on or
Par Value
and 6%? Are economic
the
not
Government
debt,
show
laws
Cumulative Preference Shares, 4.20% Series
June 19, 1951
Stone 8b Webster Securities Corporation
Corporation
White, Weld 8b Co.
and Financial Chronicle
The Commercial
8
. . .
Thursday, June 21, 1951
(2556)
Lanova Corp.
Descriptive circular
—
Dealer-Broker Investment
send interested parties
to
Company—Analysis—J. M. Dain & Company,
Street, Minneapolis 2, Minn.
407
Co.—Analysis
Vilas & Hickey, 49 Wall Street, New York 5, N. Y.
National City Bank of Cleveland—Memorandum—Merrill, Turben & Co., Union Commerce Building, .Cleveland 14, Ohio.
Pabst Brewing Co.—Memorandum—Swift, Henke & Co., 135
pleated
industry—Sutro & Co.,
Chemonomics—Newsletter
R. S. Aries &
chemical
on
Associates, 400 Madison Avenue, New York 17,
&
Graphic Stocks—January issue contains large, clear reproduc¬
tions of 1,001 charts complete with dividend records for the
1
of Union
&
Report—Laird, Bissell
Meeds, 120 Broadway, New York 5, N. Y.
Stocks—Special
Bank
Oil Companies—Financial
Chase
The
Street
National
of
corner
Bank
the
of
15, N. Y.
Over-the-Counter Index—Booklet showing an up-to-date com¬
parison between the 30 listed industrial stocks used in th«
Dow-Jones Averages and the 35 over-the-counter industrial
stocks used in the National Quotation Bureau Averages, both
yield and market performance over an 11-year period—
Inc., 46 Front Street, New York
4, New York. <.
as
to
National Quotation Bureau,
*
Petrochemicals and Salt—Bulletin—Goodbody & Co., 115
New York 6, N. Y.
way,
Broad¬
-
Aerovox
•
•
American
for March,.
$185,000,000..
May was the' first month this.
year in which deposit gains sur-.
passed those for the correspond-;
irtg month in 1950. The May gain;
April. Deposit gains
April and May totaled
reflects the fact
9, Mass.
*
*
*
"
;
Limited—Memorandum—A.
E.
Ames
&
Co., Ltd.,
Tobacco—Brief
in
review
that,
while
continued at
was a
:
public are
increasingly aware of),
the folly of wasteful, unnecessary
spending at high prices and of the
advantages to be gained by put-:
ting away today's, easy-to-get dol-.
lars
until, prico&.vlevel off and ■
their dollars grow in purchasing
power is evidenced by the sub¬
stantial gains shown in mutual
savings banks' deposits during the
last three
months," Mr. Freese
said in releasing these figures.
"If this trend continues, it can be
a vital force in defeating inflation
and in strengthening the national
"indications that the
same
ley Hills Country
some
switch suggestions.
liston, L. I.
issues selling
lected
15%
to 31%
highs.
se¬
COMING
below the year's recorded
'
■
■ .•
.
.
■
_
becoming
In
gart & Co., 1500 Walnut-Street, Philadelphia 2, Pa.
North
Shore
Cinerama, Inc.-^-Analysis—Holton, Hull & Co., 210 West Sev¬
Investment Bankers
Coppermines
Corporation—Bulletin—Freehling,
Me.yerhoff & Co., 120 South La Salle Street, Chicago 3, 111.
I Cook Coffee Co.—Memorandum—A. G. Becker &
L.
Co., 120 South
Street, Chicago 3, 111.
Darling
A.
Co.—Information—Moreland
&
Co., Penobscot
Building, Detroit 26, Mich.
,
Gemmer
.
68
Manufacturing—Bulletin—Gartley & Associates, Inc.,
William Street, New York 5, N. Y.
Getchell Mine,
Inc.—Analysis—Eastman, Dillon & Co., 15 Broad
Street, New York 5, N. Y. Also available is a memorandum
Western
on
Pacific
Hoving Corp.—Circular—J. F. Reilly & Co., Inc., 61 Broadway,
New York 6, N. Y.
Also availabje are circulars on Maryland
Drydock and Mexican Gulf Sulphur.
Ill
>
Power Co.—Analysis—Ira Haupt & Co.,
Broadway, New York 6, N. Y.
Kansas City Public Service
art &
Kansas
,
Seminar at Wharton
of
Co.—Memorandum—Hudson, Stay-
Southern
Railway—Bulletin—Smith,
Co., 14 Wall Street, New York 5, N.
Railroad Stock Exchange Suggestion.
Y.
Barney &
Also available is
Pennsylvania.
University
ronado Hotel.
Oct. 12, 1951
Security Traders Association of
Angeles annual spring party
at Lake Arrowhead Lodge.
Nov. 25-30, 1951
(Minneapolis,
•
Investment Bankers
Research
&
Engineering
Hoving Corp.
For
Filtrol Co.
Security Traders As¬
("Opera¬
Fishbite") at Gull Lake.
Twin City
1951 .(New York
Copy
on
;
Dillon, Read
City)
Arranges'
•
Texas
Eastern
-
Hempstead Golf Club,
Long Island. -
summer
the
at
Hempstead,
Michigan
16th
at Plum
and
Detroit
Corp.,
26, 1951 (Louisville, Ky.)
Bond Club of
June 26, 1951
Louisville summer
Club.
(New York^City)
New York Stock
it
was
(June 21) has made
be used for'its
ments by $83,000,000 and this total
was placed in mortgage loans and:
corporate and municipal securiwhich rose $176,000,000 and
ties,
since January.
Rollo Bergeson
corporation
agreements
Texas
DES
1, 1952.
„
Troster, Singer & Co.
Members:
74
N.
Y.
Security
Dealers
HA
2-2400.
Teletype
Private wires
NY
1-376;
377;
the
Winged
Foot
Golf
WitV, A. M. Kidder & Co.
(Special to The Financial
to
June 26,
1951
(New York
City)
New York Curb Exchange
Five
annual
golf
i
and
1
Twenty
■
tnnrnamf^nt.
Club
...
and
-i
iiri
dinner at Wheat-
L.
Stautz
with
A.
has
M.
—William
become
Kidder
&
affiliated
Co.,
Harold A. Sands
Harold
405
a
member of the
Exchange
.iVinnrto
South Garden Avenue
Aymer
Sands
passed
at the age of 65 after a brief
illness. Mr. Sands was formerly
away
Chronicle)
CLEARWATER, Fla.
378
Cleveland-Denver-Detroit-Los Angeles-Philadelphia-Pittsburgh-St. Louis
at
Club, Mamaroneck, N. Y.
Association
Trinity Place, New York 6, N. Y.
Telephone:
ment
MOINES, Iowa—Rollo Ber¬
geson has opened offices at 2323
for the sale of the
Grand Avenue to engage in the
above
bonds.
Delivery of $20,securities business. Mr. Bergeson
000.000 principal amount has been
was
formerly local manager for
made and delivery of the remain¬
Estes & Company, Inc.
der is to be made prior to Jan.
Nov. 21, 1950
Exchange Golf
Association 52nd Annual Tourna¬
Opens
Office in Des Moines
expansion program.
Eastern
The
cash for $48,000,000 as
S. govern-
reducing, U.
as
$20,000,000, respectively. The de¬
crease in the banks'
government
today bond portfolios was the smallest
entered into purchase
outing
Hollow Golf Club.
June
upon
Transmission
announced
arrangements
through Dillon, Read & Co., Inc.
to place privately $78,000,000 first
June 26, 1951 (Detroit, Mich.)
mortgage pipe line bonds, 3Vs%
Securities Traders Association series due 1970. The proceeds will
Outing
Annual
sociation
Dealers
Request
ing
Private Placement
Security Dealers As¬
outing at the Louisville Boat
Banks, Brokers and
Association
the Holly¬
well
on
Purolator Products
(Hollywood
Beach, Fla.)
wood Beach Hotel.
sociation Annual Outing
June 22,
mutual
banks during May con¬
tinued to reflect the more settled
conditions in the securities mar-:
kets. Funds received from depos¬
itors were supplemented by draw¬
Minn.)
tion
policy of the
Portfolio
savings
Annual Convention at
June 22-24, 1951
economy."
annual Col¬
Ang., Calif.)
Los
annual
Thermal
(Dallas, Tex.)
; Dallas Bond Club
umbus Day outing.
...
June 22-24, 1951 (Los
of
Our current issue of "HIGHLIGHTS" features
School of Fi¬
Commerce,
and
nance
New York
,■
Co., Reserve Lean Life Building, Dallas 1, Texas.
City
Investment Banking
American
of
Railroad.
Iowa Electric Light &
National Security Traders As¬
Association sociation Convention opens at Co¬
Pa.)
;
Los Angeles 14, Calif.
Consolidated
i
(Philadelphia,
June 18-23, 1951
(Coronado Beach,
Sept. 30, 1951
Calif.)
Street, Chicago 4,
Illinois.
La Salie
Chicago
the Nordic Hills
Traders Club of
outing at
Country Club.
Milwaukee Railway Co.—Memoran¬
&
dum—Rodman & Linn, 209 South La Salle
enth Street,
Bond
.
\"
golf
Field
Investment
Club, East Wil-
1951 (Chicago, 111.)
June 30,
EVENTS
Joseph Bancroft & Sons Co.—Memorandum—Charles A. Tag-
Chicago,
the
last year.
Co., 1 Wall Street, New York 5, N*. Y. Also in the
issue is a list of interesting low-prices Speculations and
list of 40
For
posited over , withdrawals,
was,
greater than ip the same month
du Pont &
a
with- •
first time this>
year, the net "new money" re-.
ceived from depositors, as meas-;
ured by the excess of amounts de-r
"Gleanings"—Francis I.
The firm also has
amounts deposited;
high levels, there-
falling off in amounts
drawn.
Tex.
Building, Dallas 1,
States
that, as in the two»
preceding months, amounts de-;
posited in regular accounts were;
greater
than withdrawals and *
Walt Disney
320 Bay Street, Toronto, Ont., Canada. Also available is a
list of Investment Suggestions for June.
,
this year in
continued,1 the May in¬
crease
exceeding by a consider- ;
able margin the $57,000,000 rise in-
Productions—Memorandum—Republic Investment
Co., 231 South La Salel Street, Chicago 4, 111.
Wyoming Gulf Sulphur Corp.—Memorandum—Beer & Co., Gulf
Boston 9, Massachusetts.
.Aluminum
gain witnessed
the first time
Iron—Circular—duPont, Homsey & Co., 31
Milk Street, Boston
Freese
G.
March
United Carbon Co.
Mould &
Valley
Corp.—Analysis—Raymond & Co., 148 State Street,
Carl
for
York 5, N. Y.
Exchange Place,
orandum on
♦
The
subs tantial
California—Memorandum—Shaskan & Co., 40
New York 5, N. Y. Also availabel is a mem¬
of
Oil
Union
New York 5, N. Y.
.
Conn.
Angeles 14, Calif.
v
Toledo Edison Company—Detailed circular—Nauman, McFawn
& Company, Ford Building, Detroit 26, Mich.
Pine Street,
Bank
of New Haven,
Spring Street, Los
;
'
Puts & Calls—Booklet—Filer, Schmidt & Co., 30
Connecticut
Savings
Co.—Memorandum—Dempsey-Tegeler & Co.,
Los Angeles 14, Calif.
Thermal Research & Engineering—Featured in current issue
of "Highlights"—Troster, Singer & Co., 74 Trinity Place,
New York 6, N. Y., In the same issue are data on Purolator
Products, Hoving Corp. and Filtrol Co.
Also available is
information on Southeastern Public Service, Circle Wire &
Cable, Foote Mineral, Talon, Inc., and Foundation Co.
Time, Inc.—Memorandum—Hill Richards & Co., 621 . South
York, Pine
City of New
President
and Treasurer,
\^est Seventh Street,
210
Sav¬
Banks
ings
Branch
Tejon
analysis for 1950 of 30 companies—
Nassau, New York
Mutual
Motors—Analysis—Bond, Richman & Co.,
Wall Street, New
37
of
sociation
Oil Corporation.
Sulphur and
Electric
Sterling
City
National As¬
Co.—Analysis—Cohu & Co.,
Y. Also available is a study
Car Heating & Lighting
Wall Street, New York 5, N.
Safety
the
of
dent
Also
Conn.
Presi¬
Freese,
Co.—Memorandum—Barnes, Bodell &
Goodwin, 257 Church Street, New. Haven 10,
available is a memorandum on Stanley Works.
New York.
York
ing to Carl G.
and
Manufacturing
Rockwell
all-time high of
May, accord¬
Co.
Falls Machine
new
a
at the close of
Also available 1*
and on Seneca
options—Thomas, Haab & Botts, 50 Broadway, New York 4,
New
30 Pine
Co.
to
banks
$20,234,000,000
Co., 10 Post Office Square, Boston 9, Mass.
a memorandum on Gear Grinding Machine Co.
explaining about put-and-call
"Information Please!"—Brochure
them
America—Brief review—Stanley Heller
Street, New York 5, N. Y.
Company — Card memorandum — Lerner &
Riverside Cement
1950, showing monthly highs, lows, earning*,
capitalizations, volume on virtually every active stock on the
New York Stock and Curb Exchanges—single copy $10.00;
yearly (6 revised issues) $50.00—special offer of three edi¬
tions of Graphic Stocks, 1924 through 1935; 1936 through 1947
and up-to-date current edition, all for $25.00—F. W. Stephen*,
15 William Street, New York 5, N. Y.
full year, of
/
nation's 529
increased
$72,000,000 during May, bringing
Corporation of
Radio
York.
New
total
all-time
the
in
savings
mutual
Co.—Memorandum—First California
Co., 300 Montgomery Street, San Francisco 20, Calif.
Public Service Company of Indiana, Inc.—Detailed
study—
Blyth & Co., Inc., 14 Wall Street, New York 5, N. Y.
industries—
process
Mutual
high.
111.
Street, Chicago 4,
Freese,
Deposits
Electric
Portland General
G.
National
deposits in May reached
Corporation—Analysis—Cruttenden & Co.,
209 South La Salle
"junior"
of
with analyses
Carl
of
Savings Banks' Association,
111.
Street, Chicago 3,
Salle
Lumber
Pickering
chemical securities
of five of the most attractive issues—copy on
request on personal or business stationery—ask for Survey
CI—H. Hentz & Co., 60 Beaver Street, New York 4, N. Y.
Survey—Discussion
La
South
to
President
Ste. Marie Railroad
Minneapolis, St. Paul & Sault
Montgomery Street, San Francisco 4, Calif.
Chemical
According
110 South Sixth
the following literature:
Airline Review—Detailed review of the
Deposits in Mutual
Savings Banks Soar
Broadway, New York 6,
Minneapolis Gas
Recommendations and Literature
ft is understood that the firms mentioned will be
Edelmann & Capper,
—
N. Y.
Luminator-Harrison, Inc.—Analysis—F. S. Yantis & Co., Inc.,
135 South La Salle Street, Chicago 3, 111.
29
and
New York
the
Cotton
Stock
Ex-
.SI "SSttWMW*#*
MiBSo
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2557)
spite of the fact that
"Trees Do Not Grow to the Sky"
—Nor Bull Markets Last Forever
By LEONARD
progresses
parisons
past month, market has been
movement
fore
market,
lower
able
against
to
bear
inevitably
follows.
The
Bull
.
kets
most
length
by slow, plod¬
ding advances.
stocks
not
at
time,
there
always
this
bull
o
A
be
can
Korean
steel
Leonard
the
the
the
had
stocks
40%-50%
above
their
were
reaction
the
of
ended,
motor
the
leading
still
were
1949
leading
of
present
outbreak
and
whereas
Herzig
example
in
When
War
S.
oil
lows,
stocks
only 10%-15% above these
By May of this year the oils
caught, up with the early
lows,
had
leaders
steel
most
—
and
oil
of
vances
leading
stocks
about
motor,
showing
ad¬
100%,
The
longer bull markets last
higner they go—the more
confidence the public seems
to
and the
have
not
.price
is
backward
tably catch
the
existing
warranted
facts
economic
that
that
only
level
then
stocks
by
the
but
present,
will inevi¬
#11$ the procession.
up
Tbe stock list seems honeycombed
with "bargains" even
though these
"bargains" may be 100% higher in
price than they were a year or so
before.
The fears so widely held
at the inception x>f the bull market
are
forgotten, for the experience
of
the
past year
or
so
has
been
the
difficult
characteristics.
They
start as group after
group of stocks have reached their
inevitably
tops and slowly turn down.. Since
this is a gradual process, the mar¬
ket
averages remain
tively
not
tops
stocks
most
on
by the
are
As
the
or
aver¬
whether
the
heavily weighted
averages
movers.
a compara¬
Whether
area.
are seen
depends
ages
the
narrow
new
in
in
the late
among
various
groups
sag from their
tops, volume tends
to diminish, for only a compara¬
tively few stocks are still advanc¬
ing on volume—the rest are simply
marking time.
This period, later recognized
the
top
area,
is
fraught
with
very top—but if he buys into the
already sagging his situa¬
even
canndt
perilous for he
more
even
look
forward
to
a
worthwhile rally.
ness
of
the
stunning swift¬
first
real
setback
almost paralyzes the mental
proc¬
esses of the observer.
In 1937, for
example,
the
nine-week
starting in August wiped
of the entire
in
Instead
decline
out 75%
bull market
the
hands
both
of
re¬
starting
months
than with
turn
ex¬
highs.
in
Ever
the
as
the market made
a
broad
a
front.
■
month
amount
the
Blosser,
all
sons,
spend
their
there
is
earnings.
And then
always the rearmamt-in
just starting to roll.
program
characteristic of
tion
in what
are
persistent
the
for
bit.
Few
foresaw
the
extent
of
the deflationary pressure of a cash
surplus of about $6 billion in the
stocks
company
seems
and
market
whole.
a
as
Market
ter
As
mat¬
a
of
fact, it was not too long
that people expected a deficit.
ago
Not
too
seemed
were
a
as
many
months
ago
it
if government bonds
permanently pegged at over
yet
today most long-term
three
are
result
support
characteristics
have
of
by
points under par
the
the
withdrawal
Reserve
ootn
in
of
Board.
S.
been
corporate
these
ot
is
it
well to heed them for when
internal
market
weakening
average
found
that
petand
SJnCe
June
He
can
and
equipment,
production?
plus
Will
shrinking
lower
dividends will
The slight increase in interest rate
gered?
Are
is not nearly so important as the
stocked
after
fact that in
sprees
consumers
the
the banks with unlimited
balances
and
loans.
more
reserve
which to make
on
As
more
result,
a
money is not only.dearer, but also
harder to obtain, especially for tfte
that
Until recently he was
charge of the Institutional De¬
partment of Cohu & Co.
to
He
is
veteran
a
having
wars,
Aviation.
re¬
World
incomes
will
not
to the
as
so
With Walston, Hoffman
re¬
(Special
LOS
Lindner
loco¬
and
Hoffman
machinery.
to The Financial Chronicle)
Cal.—Jack. L.
ANGELES,
is
with
now
&
Goodwin,
credit
offer to sell
an
solicitation of offers to buy
nor a
any
'
"
June 21,1951
v.;
'-
Due
securities
and
which
in
such
Prospectus
may
v
June 15, 1961
legally be distributed.
The First Boston
Corporation
Goldman, Sachs & Co.
■„
-
..
K
Kidder, Peabody & Co.
-
Stone & Webster Securities
Blyth & Co., Inc.
Eastman, Dillon & Co.
Smith, Barney & Co.
•
Incorporated
•
halting of inflation
temporary
may
be but
phenomenon,
and
a
as
of hostilities
we may again
spirited bidding for dwindling
supplies.
that the
extent
pacity
grow
severe
and
see
Profits,
Higher
their
no
too,
taxes
may
well
fall.
already taking
toll—inventory profits will
longer
ordinary
add
windfall
a
never
as
and
military
affords the same
regular
civilian
pro¬
economy
and
brunt
political
rise in
are
attack
on
any
living costs if inflationary
pressure
controls
should
are
reappear.
Price
increasing in number
and
severity,
are
still
so
W. E. Hutton & Co.
but wage increases
being granted without
In
Lee
a
sudden
new
severely?
These
war
questions
cannot be answered with
market
assurance—ra
consequence
on
may
any
one
complete
decline
not
or
Past
experience
two
periods
recent memory,
ing
.
the
top
markets it
to
quent
fact,
next to
causes
decline.
when
of
the
As
Allyn and Compaiiy
Incorporated
Estabrook & Co.
Hallgarten & Co.
(Incorporated)
Stein Bros. &
Boyce
.
Blair, Rollins & Co.
R. S. Dickson &
Incorporated
Mitchum, Tully & Co.
G. H. Walker & Co.
Dean Witter & Co.
:
Equitable Securities Corporation
R. W.
Pressprich & Co.
Baker, Weeks & Harden
Folger, Nolan Incorporated
Harris, Hall & Company
(Incorporated)
Laurence M. Marks &
Reynolds & Co.
Cj>.
-
Pacific
Company of California
Putnam & Co.
Stroud & Company
Schoellkopf, Hutton & Pcmeroy, Inc.
Incorporated
Watling, Lerchen & Co.*
Whiting, Weeks & Stubbs
t
Bacon, Whipple & Co.
of
Robert W. Baird & Co.
William Blair &
Ball, Burge & Kraus
Incorporated
com¬
Blunt Ellis & Simmons
1937
our
and
more
these
bull
impossible
subse¬
matter
reasons
for
Company
Incorporated
Dominick & Dominick
any
of the
a
Clark, Dodge & Co.
A. C.
Spencer Trask & Co.
Central Republic Company
Baker, Watts & Co.
.
even
indicate that dur¬
areas
was
give the
in
in
John C. Legg & Company
Shields & Company
W. C. Langley & Co.
be
bination of these considerations.
1946,
Hornblower & Weeks
Higginson Corporation
Paine, Webber, Jackson & Curtis
Drexel & Co.
that profits would suf¬
onerous
fer
our
they will bear the
ca¬
threat bring restrictions and taxes
based
Furthermore, profits
traditionally the scapegoat in
of
to
markups
production
margins
are
present plant
plus the inventory sur¬
pluses become burdensome? Con¬
versely, would
'
Incorporated
put'
in Korea spread out
Alex. Brown & SofiS1
Hemphill, Noyes, Graham, Parsons & Co.
the armament program to such an
inven¬
cutbacks
White, Weld & Co.
A- G. Becker & Co.
Have
controls
sudden cessation
a
Bear, Stearns & Co.
Hayden, Stone & Col
strict
of
flation?
Will
Salomon Bros. & Hutzler
Union Securities Corporation
Robert Garrett & Sons
-
Corporation
Harriman Ripley & Cfr.
Merrill Lynch, Pierce, Fenner & Beane
back
cerned with rearmament.
Yet the
of these securities.
offering is made only by the Prospectus.
ISSUE •
in
into effect to curb inflation really
been so strict as to bring on de¬
of
South
Spring Street.
over¬
inventory and for
plant expansion not directly con¬
financing
Walston,
550
Copies of the Prospectus May be obtained front any 6f the several underwriters
only in Stales in which" such underwriters are qualified to del As dealers
buying
retrenchment is indicated?
government
of
Commander.
taxes
them
period
a
after
rank
Price 99% and accrued interest
place?
Have rising
categories (commer-cial loans, mortgages and instal¬
ment credit) built up to such an
that
the
with
to
in all
extent
Naval
3/4% Notes due 1961
market
debts
lure
world
in
retired
was
II
Lieutenant
both
of
served
He
War
Datcd Junc 15>1951
rising personal
even
years.
when he founded Arrow-
.
longer buying un¬
limited quantities «of bonds
the
Board
no
longer serves as an
"engine of inflation," supplying
no
13
Commercial Credit Company
endan¬
recent
1935
$40,000,000
civilian
be
were
the
profit margins
to a point where
profits
current
the
with
for
in
Melsha,
hoisting, equipment
The
NF.W
soon
higher
Co.
of the
original found¬
of Van Alstyne, Noel & Co. in
1932, remaining with the firm un-.
Wil-
was
including
paper
given
excessive
Trust
one
mim
have both arma¬
we
an
V.
associated
smith & Co.
in
Nicholson
why the market should suffer a
really sizable decline.
Has the
productive capacity of this coun¬
try been
under-estimated
and
ment
E.
was
Vulcan, founded in 1849,
profits had evaporated..
therefore
13,
The board
This advertisement is neither
Why Shoirid the Market Decline?
No pat reason cafn be
J. E. Arrowsmith
was
was
of
won
has
Wall
KM
1918
til
elected
once
.stockholder
his slowly
Arrow-
formerly
Iron
sugar and cement mill
Jrpnslated into price
market suddenly declined
and the
Mr.
Roberts, Ralph O. Smith
motives,
was
—the
se¬
curities for the
firm.
manufacturer of large indus¬
a
trial
before.
periods
and
this
of
noted
under¬
municipal
accurate
experience
was
Vulcan
five, and
R.
elected.
change in direc¬
a
of
on
to
John A.
to
downtrend—all
no
nature
Federal Budget at the end of this
fiscal year (June 30).
Past
Chicago,
kes-Barre, Pa.
Low-priced
the
True, the inflationary spiral has
not been
spinning lately as ex¬
pected. As a matter of fact, it has
backed up and unwound itself a
out.
board
duced
working at high wages They were present in the top
ultimately destined to areas of 1937 and again in 1946.
all
and
defla¬
a
No
Works,
Inc., at the annual meeting of the
The rail average has di¬
verged from the industrial average
at the recent peak and the
leading
a
pri¬
with
ers
the
early part of the ad¬
motor stocks
the
a
Mac Merrill Birnbaum of Straus
time—in contrast
vance.
be
marily
some
Named Director
to equally
persistent odd-lot sell¬
ing at the 1949 market bottom and
during
cerned
Bankers
a general tendency to¬
bullishness on the part of
the public, has been persistently
have
never been
higher and the
labor force totals 61 million per¬
direction.
ruled
ward
higher-priced and high-grade oil,
drug and chemical stocks.
the.stupendous
previous
given
He
con-
writing of
suddenly present high grade
factor will
showing
$15.3 billion from April 1950. But,
on the other
hand, unfilled orders
and up
the
been
whether
be
cash before the event.
by the dwindling number
of new highs at each new market
peak.
Odd-lot buying on balance,
some
will
brain-numbing stock market de¬
cline has occurred, present profits
is
of
from
or
New
Stock
Exchange.
factors at present visible in
have
the
*
York
of
may well have turned into losses.
The only protection against a bear
market
is
the
accumulation of
shown
present for
of
stocK
turn
Alstyne, Noel
Arrowsmith
has been
admitted to general
partnership in
Alstyne, Noel & Co., 52 Wall
Street, New York City, members
proves, however, that after the smith
facts are clear and after the initial, been in
has
This
the
E.
Van
so
economy
be
new
selectivity
John
have
can
be
attempted—new
highs in the stock market cannot
volume has
year
Extreme
on
is
tionary
timing
taken the place of stocks advanc¬
ing
since
itself to turn the tide in
since
of
dwindled
action
year
new
been
hesitations
uptrend.
In Van
de¬
a
areas of
our
the
been
the past
of
which
reminiscent of the
1937 and. 1946 that it
might be well to wonder whether
and
poorer
quality
longer participate in the
spectacular
advances of the
billion
1935^ in 1946, the four-week compensating price increases.
of
have ever-growing
we
duction.
Finally, the bear market starts
in earnest and the
of
tory is liquidated,
as
danger to the stock buyer. Should
he buy into .the groups still ad¬
vancing he may be buying at the
groups
tion is
in
than
At the end of April these
amounted to $68.3 billion, up $1.9
as
and far mofe
more
tailer.
issues
hand, have different
civilian
manufacturer, wholesaler and
have profited least.
other
effect.
inventories in
par,
the
the
upon
ultimate
that those who have feared most
Bear- markets, * on
misconceptions
impact of
economy, but tnese seem
the nature of the
timing
shortages,
typical
found
market.
following
been
True,
to the nature of the
rearmament
by
the
buying
laggards.
have
there
the
market
usually able to predict.
as
op¬
t
enter
is
is
portunity
situation is not per¬
sound as far ahead as one
fectly
so
an
of Transition
ent economic
any
one
Period
the
events
nature
top
cut—if
of the characteris¬
in
Arrowsmifh Partner
occurred in the past months can
thus far be considered
only as an
interlude before rearmament
gels
into full swing.
some
itself has
many
tics which have
continuing
economic
market
symptomatic of bull market tops
bull
a
The
flationary
the
Slock Market
past
was
Conclusion
Nonetheless,
smaller
be
clearly visible it
proper valuation
the
market
rather
into
near
A
do
that
buy
It is hard to argue that the
pres¬
partici¬
pate
not
tion of one's paper profits—if one
is let off that lightly.
of their
All
need
a bull market usually means
the sacrifice of a least a
large por¬
acterized
through
September
in
stay
char-
are
starting
its inception to reap
financial reward—but to over¬
a
mar-
Weakening
During
stock
market
..
dividends have to
hibiting
One
no
Fur¬
they must be cut at all?
wiped out 40% of the entire bull
which
market
much
a
will
market starting in 1942.
themselves
protect
the
have
earnings than usual
paid out in dividends, how much
bear market.
are
with
initial "brain numb¬
an
decline
need
percentage of
ing" stock market decline has occurred, profits may well turn
into losses.
Urges cash accumulation as protection against
Almost anyone can make money
in a bull market.
Few, however,
profits
were
figures
earnings and there¬
highs in the market,
new
holds past experience proves that after
record
decline
much too late to sell stocks.
com¬
the stock market.
on
thermore,
during
says
exhibiting characteristics of bull
top. Though not ruling out
poorer
really dis¬
impact
current stock
the
counted these
Members of the New York Stock Exchange
Herzig, in dissecting
make
with
year
statements
or
the third and fourth
quarters
of last year, it may well be
argued
that stock prices never
S. HERZIG
General Partner, Sartorious & Co.
Mr.
to
the
as
earnings
bound
are
9
of
the :
Julien Collins &
J. C. Bradford & Co.
Company
Clement A. Evans &
Johnson, Lane, Space and Co., Inc.
McCormick & Co.
Pacific Northwest
•
v
Company
Schwabacher & Co.
Company, Inc.
Hamlin & Lunt
Granbery, Marache & Co.
*
Company
E. W. Clark & Co.
Farwell, Chapman & Co.
J. J. B. Hilliard & Son
A. M. Kidder & Co.
The Milwaukee Company
A. E. Masten &
Company
Moore, Leonard & Lynch
Piper, Jaffray & Hopwood
.
Schmidt, Poole & Co.
Singer, Deane & Scribner
,
f
Chronicle
The Commercial and Financial
10
.
.
Thursday, June 21, 1951
.
(2558)
Fusz-Schmelzle & Co., both of St.
are
2l/z%
Chemical Co.'s phos¬
by Monsanto
ducers of shoes, on
(111.) at
accrued
interest.
The
dated May 15, 1951, and
Diocese of Belleville, Inc.
structed
nation's major pro¬
June 7 filed a
the
of
one
phosphorous plant will be con¬
at Soda Springs, Idaho,
tal
Louis,
Co., Inc., St.
Brown Shoe
3V4%
to
serial
.
and
100
Connecticut Brevities
offering $1,500,000 of
direct obligation
bonds
of
the
Catholic
Louis,
Missouri Brevities
bonds
are
phate division. Construction is ex¬
statement with the
pected to start this summer with
SEC covering $11,000,000 of sink¬
operation scheduled to begin in
ing fund debentures due July 1,
the latter part of 1952.
1971, and an aggregate of 224,187
*
%
%
mature
shares of common
stock. Proceeds
from the debentures, which are
expected to be offered to the pub¬
lic on or about June 27 will be
States underwriters
000
the company's 34,330
outstanding shares of $3.60 pre¬
ferred
stock
(requiring
about
receivables in con¬
expanded operations,
including contracts with the
armed forces, and generally higher
$5.62y2 per share were DempseyTegeler & Co. and Stifel, Nicolaus
&
nection with
Goldman, Sachs &
will
head
a, group
of underwriters
through whom the debentures are
to be sold. The common stock is
levels.
Smith, Barney & Co.
being underwritten.
to
Co., Inc., proposes
which
acquire Wohl Shoe Co.,
operates a large retail and whole¬
sale shoe business throughout the
by offering to exchange
2 l/z shares of its common stock for
each share of Wohl stock, which
country,
maximum of 124,187 shares.
The balance of the
common
stock is represented by
shares which may be or have been
would require a
.
invest¬
12 partici¬
offering of ^256,842
(par $8.75)
Co. at
the
in
pated
shares of common stock
of
Power & Light
Kansas
share:- Barret, Fitch &
& Gardner;
Smith, Moore & Co.; Stern Broth¬
ers
& Co. and Uhlmann & Lat-
$16
per
Co.,
Inc.;- Reinholdt
shaw, Inc.
The
'
■
*
a
Co.
preceding fiscal year.
-company's
the
that
of 1951
6% ahead-of the correspond¬
sales for the first quarter
were
Unaudited
the month of
ing period of last year.
figures
sales
for
increase over
month in 1950. The stock¬
May showed
the
same
4%
a
the 2-for-l stock
split proposed by the management.
Certificates for additional shares
will be issued
stockholders of record June 7
mon
to
the
June 28 to com-,
on
give effect to the split-up and
stockholders will not be re¬
their- present
An initial
quarterly dividend of 45 cents has.
quired
in
turn
to
holdings for exchange.
been
declared
the
on
new
stock,
equivalent of the previous 90
the
cents
The
share on the. old stock.
cash
dividend
is • payable
Hussmann
of
on
18 ap¬
June
proposal to issue 23,000
shares of 4% cumulative
National Bank
offered the
in St. Louis are being
right to subscribe for 100,000 addi¬
tional shares of capital stock (par
at $44 per share at the rate
share for each six shares:
$20)
of
V
15, 1951.
*
held
business
of
close
the
of
as
(CDT) on
underwriters,"
headed by G. H. Walker & Co.,
St. Louis, have agreed to purchase
any unsubscribed shares and both^
during and following the subscript
tion period may offer shares at
prices to be announced at the time
of offering. St. Louis Union Trust'
expire at 12 noon
will
A group of
Co. will exercise its rights to pur¬
31,446 shares for $1,380,000
188,676 shares of First
chase
it owns
National stock.
preferred
l-for-8
a
basis.
will
expire
ceeds
will
with
be purchased
ceeds
company
of
which
by the same in¬
at par, the pro¬
will initially be
capital.
added to working
Mundy, Trustee of
.
and
owned.
tain
•who
on
among
the
Excelsior Savs. Bk.
voted
Stockholders
ing $100,000,000 of capital
Window
The
,
if
'
'
>'
■
tual
fixed
Reservoir" and
Samp
watershed
and
contingent charges
was
jl
sj;
*
Floyd W. Mundy, Jr.
Savings
celsior
Hi
on
June 12
participated in the public offering
of 111,000 shares of common stock
at
$21.75
per
Bank,
221
West
to Francis
Street, according
57th
Bancroft, President of the Bank.
S.
The
Company.
Hydraulic
S|S
,
June
Ac¬
certif¬
July 1, 1951,
No. 53, dated April 1,
1949, of the adjustment mortgage
of
coupon
bonds.
Dempsey-Tegeler
&
Co.
and
Spinning
Delhi Oil
The
Makes
Appointments
Incorporated* 23
Wall Street, New York City, has
promoted Roger Maynard, for¬
merly an Assistant Secretary, to
be
an
&
Assistant
an
and
Vice-President.
appointed
M.
as
Trust Offi¬
Hobson,
Richard
M.
John
Rogers,
of whom had formely been
Assistant
Trust
Officer
on
tion of the project
for two
or
J. W. Kirkner
$10,000,000.
Kirkner is
now
are
and
Vermilye.
business from
PRIMARY MARKETS
Light
Connecticut
Connecticut Securities
Power,
&
Electric Light have jointly organ¬
Electric Power, Inc., for the
ized
Tifft Brothers
of constructing generating
purpose
Established
facilities and selling electric power
wholesale
at
only.
struction plans
;•
New
,
York
& Boston
of
(Associate);
Hartford 4
9 Lewis St.
Tel. 7-3191
As
Stock Exchanges
New York Curb Exchange
if
it
it
«
May 31, the total back¬
.
New York: BArclay
BeU Teletype
CONNECTICUT
ACME WIRE
!
•
KFRITE CO.
SECURITIES]
•
LANDERS FRARY & CLARK
•
ASSOCIATED
•
SPRING
STANLEY WORKS
VEEDER-ROOT
Stix & Co.
STREET
CHAS. W. SCRANTON 6- CO.
MEMBERS
Building
St. Louis 1,Mo.
NEW
NEW
HAVEN
Garfield 0225
L. Dt 123
New
York: REctor 2-9377
YORK
STOCK
EXCHANGE
' Telephone 6-0171
Teletype: NH 194
Hartford 7-2669
\
7-3542
HF 365
markets in:
ARROW-HART & HEGEMAN
•
:
1907
Members
Actual; con¬
have not been an¬
nounced.
MIDWEST STOCK EXCHANGE
509 OUVE
.
Connecticut Power, and Hartford
.
Quoted
2, Mo.
IN
Hartford and
if
if
We maintain primary
SCHEKCK, RJCHTER COMPANY
St. Louis
securities
is not expected
TORRINGTON CO.
Landreth
a
offices at 46 North
log of orders of Electric Boat Com¬
Producing.
—
engaging in
Arlington Avenue.
MEMBERS
Rockwell Mfg.
Sold
Opens \
ORANCJE, N. J.—John W.
cus¬
serve
who
EAST
three years.
if
appointed as Investment Officers,
Harrison V. Smith and Peter H.
Texas Eastern Transmission
Southwest Gas
their trading department.
the South Mea¬
upon
Tennessee Gas Transmission
Southern Union Gas
area
City, announce
has joined
Miss Anne Trent
that
plant in Hartford. While the
have been
order for some time, comple¬
Co.
William
each
;
that
Co., 40 Exchange
New York
dows
The Board of Directors of J. P.¬
Morgan
will
plant
new
S. H. Junger &
Place,
boilers and generators
7 author¬
Harshaw Chemical
office.
stock
of
Miss Trent Joins
the Connecticut
on
cost of about
a
dependent
Morgan & Go.
»i:
;The directors of Missouri-Kan¬
on
in Middletown
River at
tomers in
J. P.
share.
*
Petroleum Heat & Power
Bell Teletype
SL 456
Avenue
specimens
exhibited in the window.
property, which had not been used
Horn
—
Display
Security," paved
recently announced by Bridge¬
port
Net income after
Reinholdt & Gardner
Co., Inc.
Bought
to
since-1914, is located in the north¬
eastern
part of
Fairfield.
The
Berkshire Fine
.
.
icates, bonds and bank books are
sale' of its 305-acre
Mortar
cers,
_
"Road
Madison
575
if
month last year.
Newhard,
.
.
with
quality stocks for higher
The Bridgeport Brass Company
yield and growth, bonds for
plans to call for redemption 2,450;
steady income, and bank deposits
shares of its*5 V2 % cumulative pre¬
for emergencies, is the theme of
ferred at $107.50 for the sinking
tne
current
window
disomy of
fund. This would reduce to 8,263
Steiner, Rouse & Co. in the firm's
the number of shares outstanding.
The board
,
offering, cer¬
waived
stockholders
Sleiner, Rouse Go.
stock'.
if
if
if
was
multi-million-dollar elemen-
;
shares
After the proposed
ports that operating revenues Jfor
April amounted to $10,613,569, as
against $9,202,416 in
the- same
Cook & Co.; Reinholdt & Gardner
A
$15.50
at
54
on
stock issue there will be outstand¬
The
ized the payment on
and Stifel, Nicolaus &
each
Prior to the
larger
of¬
rights on 114,596
shares,
$23,600,000 expansion which were sold publicly.
The
for this year. The com¬ remaining 35,404 shares were sub¬
pany recently obtained a rate in¬
ject to subscription through rights
crease of $2,480,500 from the State
which expired June 15, with any
Public Utilities Commission—the
'balance being offered by the un¬
third increase in the company's
if
$51.25 per share were the follow¬
Louis houses:
stock
common
for
were
15 additional
.the
$250,000,000.
offering was quickly,
sas-Texas RR.
St.
"
program
oversubscribed.
300,000 shares of E. R. Squibb &
Sons common stock
(par $1) at
ing
if
-
their
capital stock from $100,000,000 to'
(par $10) of Sangamo Electric Co.
bankers
June 12 publicly offered
Included
*
rights to buy
share
per
property
was
sold
for
about
Of this $384,843, a decline of $59,005 un¬
der April, 1950. Net after charges
Floyd W. Mundy, Jr., partner in $250,000.
total, 16>000 shares are to be ex¬
^
*
if
if
for, the four months ended April the Wall Street firm of James H.
changed for an equal amount of
series A preferred stock held by 30, 1951, totaled $2,415,246, as com¬ Oliphant and Company, 61 Broad¬
Connecticut Power and Hartford
pared with $1,513,173 for the first way, New York City, has just Electric
Penn Mutual Life Insurance Co.,
Light plan to construct a
four months of last year.
been elected a Trustee of the Ex¬
and the remaining 7,000 shares are
60,000-kilowatt generating plant
to
its
orders on May 10
reported at about $3,000,000.
.'shares of
stock, series B (par $100).
surance
repaid
Unfilled
fered
connection
in
used
if
has
ning, Maxwell & Moore
The pro¬
July 20.
on
be
for
.
On June 5, stockholders of Man¬
Warrants will be mailed on June
28 to holders of record June 27
if
ma¬
derwriters.
220,000 shares of Hudson
This
on^
share
a
purposes.
Mills
«
offer
400,000 shares of its common stock
through rights at the par value of
$25
5.
Of
$1,000,000
acquire
equipment and
and
Tele¬
to
plans
new
June
RFC loan in the amount of $350;-
-
England
New
one
on
proceeds
if
were
Southern
of
to
at $38
June 19 to increase the authorized
Pulp & Paper Corp. class A com¬
mon
stock
(par $1) at $18 pershare.
+
net
Wauregan
000.
%
if
if
-
basis
owned
general corporate
products will be made at the
history.
&
Co. and
Prescoit, Wrigut, Snider Co. were
included in the group of under-,
writers who on June- 13 publicly
offered
total
chinery
plant.
Subscription' warrants* phone ' Company
11.
June 26.
»!:
*
what
common
and the remainder to
the
indicated
not
stock¬
would be used to retire ban* loans
one
June
as
the
stopped recently
when
manufacturing
facilities
were moved to Taunton, Mass. The
owners
five
its
subscribe
to
the
on
each
Manufacturing
The rights expired on June 20.
in
Delite plant were
have
share
for
new
under
if
offered
rights
102,197 shares of
a
at
has
Company
,
Operations
Mills.
*f
Towne
&
holders
Conn., has been sold
Corporation by An-
Brewster
Addi¬
are
%
Yale
*
sonia
"•
if
if
The former Delite Fabrics Co.
year-end.
negotiation.
Hockanum
,
if
if
the
at
The plant
1
to
per
Sept. 1 to holders of record Aug.
tire, properties.
in¬
$155,000,000 from $91,-
commitments
tional
plants to be sold under the plan
which calls for disposal of the en¬
Pawcatuck,
outstanding capi¬
260,000
woodworking.
for
This is the first of the
-
•
if
if
First
of
stock
tal
*■<
used
be
the
$2.23 per common share, for
or
St. Louis-San Francisco Ry. re¬
i.
"
stockholders
proved
.
■
Refrigerator
May, President of May
announced
/
*
tft
'
Morton J.
$592,369,
of
taxes,
Holders of the
Department Stores Co., on June 5
ended April
equal to $2.98 per common share,
compared with a net of $444,850,
if
if
will
Dempsey-Tcgeler
.
June
on
after
come,
;
>'f
*
following Missouri
The
ment^ houses
■
key -em¬
certain officers,
ployees, including
and employees. .*
rf
company's
for
plan
option
stock
the
under
purchased
For the fiscal year
creased to
part
Co., Inc., of Hartford.
if
if
if
si:
i<t
holders approved
*
*
%
Shoe
Brown
clusive.
Co., Inc.
ventories and
not
at a price of
(par $1—Canadian)
$3,600,000) and the balance for
general corporate purposes, such
as
the carrying of increased in¬
Co. and
Ltd., capital stock
Oil & Gas Co.,
used to retire
price
of United
offering 875*shares ©f Calvan Consolidated
Included in the group
in¬
1952-1963,
annually
and its subsidiaries had
pany
of the
well-known
Hockanum
Mills,
controlled by
J. P. Stevens & Co., has been sold
to the Holstein Rubber Products
ville,
30, 1951, the Elder Manufacturing
Co., St. Louis, reported a net in¬
registration
Mills Plant at Rock-
The Saxony
Volume 173
Number 5022
.
The Commercial and Financial Chronicle
.
.
(2559)
disappear in
Prospects in Television Industry
By BENJAMIN ABRAMS*
President^JEmerson Radio
vital factor
a
number of stations to create
up
television
vision is
tronics
try
a
term
ing
the part of the public. News
Washington continued in the
that
was,
more
if there
even
sorbed
to
cut
evident,
was some
it
over
would
longer
a
Benjamin Abrams
production
mount.
The
reached
that
period
of
continued
d
p r 0
t i
u c
to
rate
o n
all-time high in the
first quarter of 1951, and
by then
it became
very clear that the
the
electronics
industry as I should
However, this industry of ours,
an
solution to the problem is
which is very much
also very much
tered
more
other
any
roadblocks
industry.
than
All
imposed
and
ter,
has
sorts
are con¬
put
in
that
freeze
be
is
of the progress of this new
Yet despite that fact it
has grown by
leaps and bounds.
/Starting back >in 1947 with a
production for the industry of
That
into
went
Commission
censing of
television
rate
of
receivers
such
a
sharp
that
drop,
within
and
three
it
is
four
or
months
these inventories which
have accumulated in the
pipelines
receivers,
—in
the
hands of manufacturers,
and
dealers—will
distributors,
melt
on
should
with
tion before the
away
and
will
we
get back
12
million
million
produced
as
in
given
a
the
basis
where
approximate¬
the
ly 2 y2 -million television receivers supply may not be as great as the
demand.
produced, which is at a rate
of
That, off hand, may not sound
approximately 10 million re¬
like a very attractive
ceivers per year.
picture for
the industry.
However, it isn't
That is a
fcelling
was
at
quarter.
per
does
give
interest
ypu an
and
market
*
quite
Translated into dollar
volume, last
year the industry did
something
like $2 billion in business.
As com¬
dustry
did
million
a
time
it
something
has
times in
about
up
And,
No less painful is the
IV2
assuming
of
That
there
It is
is
still
not
in
pro¬
slow
a
all-out
or
no
should
four years
be
war
in
develops
these
in
normal
times.
certainly did not expect
•
a
We
Korean
situation to break out in June
or
July of last year, and that Korean
situation
has
brought about a
1
great deal of
scare
! great many other
ous
a
into
scare
scarce some
for. the
us
by telling
on
the
part
which
of
of
television
Consequently
of
.
.
.
...
mately 1,000 television stations
the
air.
course,
When
that
happens,
there
will
be
production
in
on
in
of
become
may
of
up
were
not
production
rates
contemplated be¬
Furthermore, the public
continued
to
absorb,
had
during
ernmental
the
steady climb
a
far
so
as
This
announcement
gov¬
are
requirements
con¬
■
neighborhood of about $31/2
billion.
expect
While
that
in
the
1951
I
do
'
^Extract
an
meeting
ers'
-
address
of
from
by
the
Brokers,
12, 1951.
stenographic
Mr.
report -of
Abrams
Association
New
York
be
of
before
Custom¬
City,
a
become
South
Warnes
Grand
was
associated
Hammill
&
Avenue.
formerly
Rambo, Close Co
Co.,
Mr.
]
associated
with Hill, Richafds & Co. for many
PHILADELPHIA, Pa.
Close &
years,
Street,
Baker
tion
Legion Wall St. Post
that Clayton
E.;
joined their organiza¬
announces
has
district manager in Central
Pennsylvania. Mr. Baker entered
the
Elects Donald Raphel
Donald A. Raphel of Glen
as
—
Rambo,
Kerner, Inc., 1518 Locust
investment
business
industry's
lars—it
hood
year,
will
of
a
be
Ridge,
N.
historic Federal Hall
A
Vice-President
June
on
and
12.
director
Appeal Printing Company,
Mr
Paphel served as a Captain of
Infantry during World War II and
18
active
m veteran affairs
He
is
'
..(Special to The Financial
Chronicle)
,
PROVIDENCE, R.
I
ford
Calef has
Club
and
Lake
Mohawk
Country Club.
become
was
of
Warren &
not
associated
of
formerly
Chace,
offer to sell or a solicitation of an offer
offering is made only by the Prospectus,
to
will
mobilization
account
for
like $21/2 billion.
pro->
buy these securities.
"
Dated June 1, 1951
as
-
the
U
Due June
Price 103.20% and accrued interest
civilian
1,1971
the
'
'
>.
produc-'
production of:
&
television
and radio sets, will
put
this industry
by next year on an
all-time high production of some¬
rate
be obtained from the undersigned.
the present time.
and
business
to
HALSEY, STUART&. CO. INC.
However, to off¬
take the place
which
may
\,
:i.
-
1
: fi
course,
June
^
"*.
enjoyed by the industry
anybody's guess.
set
may
J
;
Copies of the Prospectus
thing in the neighborhood of about
$4 billion, and that is about double
the
*'W'
something*
end of the manufacturers'
such
•
•
That, coupled with
tion,
'
Company
pro¬
of such
eventually
June 20, 1951
Vice-
Sears, Inc. with head¬
5% Debentures due 1971
neighbor¬
dollars—next
Boston.
Whiteside^
quarters in Providence.
an
>
I.—F. Brad¬
;with Burgess & Leith
a member of the Sons of the Amer- Mr. Calef
ican
Revolution, Veterans of the
President
Seventh
Regiment,
Downtown
Athletic
f
C. Bradford Calef
meeting held in
billion dol¬
a
the
1952, I expect that the
duction for the
gram
in
billion
191ft
associated with,
Butcher & Sherrerd.
J., was elected Commander of
the Wall Street Post of The Amer¬
ican Legion at a
North Penn Gas
elec¬
tronic production for the defense
program will exceed
in
jand most recently
•
How long this mobilization
pro¬
gram will continue is, of
could
520
has
Shearson,
not
at
that
with
$2,700,000
something
in the
the
sets
is
admit
Clayton Baker With
ANGELES, Calif.—Roy C.
Warnes
The
the commitments to be
placed by
the government will be
first three quarters of
1950, all of
television
of
Mid-/
Exchange, will
cerned. This climb will continue
into 1952 when it is
expected that
up
manufacturers
which
on
this television industry will
*
stocking
and the ingenuity of the
has
made
possible
a
^scarce;
industry
jbuilding
fore.
rush
a
materials
how
us
materials will become
production
was
a
The vari¬
agencies threw
and radio receivers.
there
buying and
scares.
governmental
three
from now, approxi-
.
;j don't live
LOS
-
now
mobilization pro-
National
the
(Special to The Financial Chronicle)
.
^
is'no 'inter-
gram
material
Much
from
our
with
industry.
years
ference from
-there
the
four
Stock
substantial production for the de¬
fense program, and from that time
re-
ceivers in the first quarter of
1951
; represented a greater
production
than should
normally have taken
place in this industry.
But we
of
grind to get
it started, but
by the fall of this
year the industry will be in
fairly
receiv-
jn 1950 and the 2y2. million
ers
some¬
or
duction.
fact that
million television
is
worth
or
.
i} continuing.
the
there
billion
three
this
five
fore, it had a great many growing
pains and these growing pains are
j
At
particularly when instead of
having 107 stations there will, in
ices
I said be¬
as
appear.
vital factor
program.
which exists for television receiv¬
ers,
contracts that have been
placed
by the various governmental serv¬
$400
So at the present
grown
size.
like
may
very
time
present
thing like $2V2
television, the in¬
year.
a
mobilization
our
the
it
as
This industry is
in
pared to prewar times, and before
of
bad
as
—steme,;
of
ham Trust National
Bank.
Warnes
of-'4
idea of the great
members
Birming¬
Roy
Nevertheless, it
potential
Ala.
Leach,- First
Henry Sharpe Lynn to partner-"
ship on Aug. 1. Mr. Lynn is now
Vice-President of the
a
.
advent
west
about 2 million television receiv-J
ers
them,
.
Birmingham,
Agee
&
Building,
Of,
rate
a
atomic
Sterne, Agee to Admit•;
Lynn as Partner
receivers
period.
three
without
high would have been set.
'.i
many as
television
in
even
(
With mediocre
programs in many
localities, with no stations available in
one-half of the United
2V2
new
But
*
Then
reached
far-
\
receiving sets
broadcasting stations
the entire United
States, yet we have
point where there are
so
$44,085,000 over last August,
due chiefly to
non-residential con¬
tracts aiding the defense
drive.
'
10 to
dustry
to
a
radio
programs.
$980,000,000
at
course, they were not all sold, but
there was a pteriod when the in¬
get
of
produc¬
of from
war
was
the
projects.
that
compare
industry
an
will
imposing record.
Roy G. Warnes Joins
Shearson, Hammill
of,
basis where the demand will
balance the supply.
Maybe we
a
above
place in the first quarter of 1951,
and then I say that 107 broadcast¬
ing stations are all that are avail¬
you
Rockies,,
previous high of last
August's $1,548,876,000.
The May record was so
emphat¬
ically a new high largely
because,
took'
as
states east of the
figure of $2,572,961,000
now.
of
production
t
a c
,
leading industries
li¬
settlement
tr
c o n
by far the highest'
of any month in
history in
marketing specialists.
This almost automatically means
a new
high for the 48 states, ac-.
cording to Dodge, because the
May
fact, I have high
days tele¬
among the four
of these
rank
r
in
the
hot
It is very sig¬
when I speak of a
nificant, that
million
froze
too
broadcasting sta¬
new
today
were
the
there
some¬
effect
look
in the
United States. It is
rapidly getting
and-
1948 when the Federal
Communi-*
cations
five
or
is
hoped
it achieved a
production in 1948
of about 900,000 receivers.
In 1949
there were 3
million television
receivers
.produced, and in 1950
the output was 7V2
million. In the
first quarter; of 1951
very
or
one
will
so-called
stations.'This freeze .order is
thing which
.matter of
a
vision
lifted,. there will
in
broadcasting-
increase
the
was
the
construction
according to the F. W. Dodge Cor¬
poration, construction news and
As
.
after
order
an
station
one
May's
total
the 37
hopes that
is
choice.
no
;
awards reached
moment, and on the other
y?u have the prospect for
the future
which looks very bright.
the
what
by three
*
existing pic-
which doesn't
ture,
accounted for
atomic,projects.
hand
900,00 television receiv¬ you can get a feeling as to the
ers per
month, is now producing atr great interest which exists in the
the rate of about
300,000 per month.' ownership of television receivers.
way
175,000
to
is
was
at the
broadcasting sta¬
there
the industry," with 2,000
early part of the blanketing
producing at a rate of States with good
in
800,000
the
industry,
something like
that
so
which
of
year
governmental restrictions
stantly
to take place after the first
quar¬
encoun¬
is
have
billion
serving the entire
country instead of one-half of the
cuuixix,y.
country.
j. utrx eiux
Therefore, on the' one
e,
me
-•
hand you have the
very poor tele¬
Even in communi-
don't
Awards in May estimated at over
WVz billion, of which almost $1
greater number of stations
being
the air and
on
of
gets
However,
only- able,
rapid ' figure
a
publicized, is
cutback in production. This
began
plagued. As a new
industry, it has probably
he has
10
This
industry in¬
population
little overr* tions
pending the
be
ab¬ the color
question.
time.
television
do.
the
production,
that I may be
to
not
was
set
available
and
scare
The feeling
scarcities
of mate¬
rials. became
stead of refer¬
reach
vision
going to
extent.
some
as
remarks
ring
are
increasingly
ened to
public eye.
Therefore you
may
find
in
the
materials
back as rapidly as would ordi¬
narily have been the case, particu¬
larly as public buying has less¬
the
referring
tne
begins to taper down, there will
increased volume of busi-
which m,ust come to the
television industry as a result of
the
j
that
of
Reports flew High
In Building Contracts
program
ness
only
part
to
be the
the
variety. of programs. And there¬
fore, what the owner of a tele-
on
therefore production
cized and very
my
are
good
nities where two
tions exist you
shipped.
become
publi¬
in
they
vein
the
has been ,yery
much
within
A
of
vision service.
from
which
much
be
there
more
At
.
the
is
1.
population.
one-naif
as
air.
tions cover, or are within reach
of,
approximately
""-v
one-hair
01
me
sets.
rapidly
as
time
when
the
on
107
television"
broadcasting stations in
the-United States. These 107 sta-
A great deal of this
absorption
turned out to be anticipatory
buy¬
"
present time
and
just
receivers
go
present
Looks for increased
and
could
major part of the elec¬
indus-
at
made
stations
into its own.
offset what the
industry
will begin to lose in
production
when this mobilization
11
come
So
,
lines—that end of it will be taken t
by the increased demand for
,
larger public demand for TV
^ The television industry is not
limited to
television—it is reallythe
electronics industry—but tele¬
.
really
zation program is
concerned—that
disappear from manufacturers'
and Phonograph Corporation
in mobilization
program.
the mobili-
as
is,
Executive of large radio and television
producer, asserting elec¬
tronics industry is not
only very much publicized, but also very
much plagued, cites statistics of
growth of television and reason
for high scale
production and heavy public buying. Says situa¬
tion may
change and demand again balance supply, as industry
is
far
so
•
'
and Financial Chronicle
The Commercial
High Safety Record
Annual Report
national average.
;
safest
which
convention.
low of 4.56
its annual
injuries
man-hours
worked
record
A
million
per
sons:
Board
called
is
to
Directors
"First, that the
to
Thursday, June 21, 1951
,
Trade
"International
Organiza¬
—
.
"Renewal of Reciprocal Trade
have been international emergency and re¬
the average turn to a peacetime economy. The Agreements Act, II.R. 1612—Mr. S.
Association took an active part in C. Moody of the American Cyanafor all industry for many years,
mid
Company
represented
the
according
to Dr. Cranch, "but proceedings before governmental
MCA and the Synthetic Organic
chemical plants have made espe¬ agencies in behalf of the industry.
Chemical injury rates
below
substantially
in reduc¬
ing industrial injuries since 1946."
The average accident rate for the
cially notable progress
we;re
—
Reciprocity Information in May
companies and June of 1950 to receive state¬
has dropped 40% during the past ments from those who wished to
five years.
Dr. Cranch attributes present data with regard to I he
this
record
to improved safety Torquay negotiations.
Tne pub¬
measures adopted in the industry
lished
list
of
items
on
which
and to good cooperation by em¬ dutieis might be reduced covered
ployees in observing safety rules practically every dutiable chemi¬
and precautions.
cal
contained
in the
schedule,
with
the exception
of coal-tar
member
association's
and
of the
CHEMICAL PROCESS
specialists in the
ask the
industry..
„
consult ARIES &
ASSOCIATES.
Act
"i
'
.
should
that
during
That
of
cussions,
indicate
be appointed
Trade
Tariff Commission,
the
ap¬
upon
plication for relief by an ag¬
grieved producer,: must conduct
public hearings, make public find¬
ings of fact which shall include
a finding of fact as to the ra e of
duty or other import conditions
which represent a minimum safe¬
Samuel Franklin Adds
(Special to The Financial
bill
"The
1
The
ments.
Agreements
Elect Miralia Pres.
year
its
and
implica ions, particularly
feasibility of continuing the
120
the
light of changed world
Ic
was
argued that
concessions
threat of serious-
elected
David
President;
J.
Bradley
injury to domes¬
ber
of
Trust
Co., Secretary;
anty
John
Sen¬
protest
•
,
•
•
Investment
Profit Estimates.
and
•i
Development Planning.
•
Industrial
•
Techno-Economic
;»
spectus
•
Portfolio
r*w\
Pro-
Studies for
Analyses
ABOUT
•
Audits
Techno-Economic
of
Com-
Virtually all elements in this vast industry
ment
Let the
Aries experience in
processes
aid
you.
We furnish
for
^know-how"
complete
proc¬
ranging
requires
-your
no
research
additional
These
in
on
current survey,
the most attractive
part.
'
f
Without
newsletter
obligation,
write
for
A copy
our
Chemonomics.
on
'h
"1.
1
and promising issues.
will be mailed at your request ;
personal
or
business stationery,
j
'
Request
R. S. ARIES &
Survey
Cl
ASSOCIATES
UJLHENTZ & CO.
CONSULTING ENGINEERS
&
Member* New York Slock
Exchange and other
leading stock and commodity
ECONOMISTS
exchanges
;
CHEMICAL
-
..
„
•"
60 BEAVER STREET,. New York
BOwling Green
PROCESS
INDUSTRIES
'i
~
*781 FIFTH AVE., N
400 Madison Avenue, New York 17, N. Y.
CHICAGO
•
DETROIT
•
PITTSBURGH
•
'
1951.
fight to establish a
Gerald L. Wilstead
associated with the
research department
York office, 120 Broad¬
the
New York City. Mr. Wilstead
formerly was with the Wall S reet
Division
of
Chemical Bank &
way,
Trust Co.
Trade
and
support,
Heronymus & Brinkman
Formed in Sheboygan
to The Financial
(Special
Chronicle)
Wis. —Herony¬
mus and Brinkman, Inc. has been
formed with offices at 809 North
SHEBOYGAN,
to
Street
Eighth
securities
in the
engage
Officers
business.
are
President;
MagnusBrinkman, Vice-President;
Heronymus,
Evelyn
and
Secre¬
Brinkman,
William
tary-Treasurer.
realistic
tariff policy.
"Customs
Simplification
Bill—
again been intro¬
duced in the present Congress. So
far no hearings have been sched¬
uled
on
it.
Arrangements have
been made for appearances by the
MCA if and when public hearings
are held
and the Association willbill
This
has
oppose the bill. An oral statement
will be made, urging that "Ameri¬
meth¬
be maintained for coal
selling price" valuation
can
chemicals, but be extended to
all
other, chemicals
A Prospectus
pany
the
price and terms of
ing, is
Trade—Under
tan
offer¬
available upon request*
If.
fberstadt & <CO.
*
and
describing the Com¬
and its shares, including
now
H6t6l subject to other valuationinethods,
"General Agreements on Tariff
GENEVA, SWITZERLAND
of
an¬
that
in
of its New
for
This organization
valuable
members
Exchange,
become
firm
MCA has continued
rendered
has
cover
9-8420
Plain 9-3060
.year
CO.,
&
S ock
York
nounce
has
Labor-Manage¬
Foreign
Reynolds & Go.
Reynolds
particularly from organized labor,
tar
4, N.
Y. (Sherry-Nefherland
the
od not only
•
SPECIALISTS IN
on
cooperate with the Council
has renewed its membership
in the
discussed
which analyzes five of
secondary chemical securities are
our
Joins
the House and
to
•
tonnage
The
Policy.
of the smaller companies are
some
National
{javernors.
Gerald L Wilstead
Committees.
Council
ment
leaders, while other
"juniors" have developed new products which
give promise of rapid major expansion. -
from fine organics to
chemicals to investors and
companies.
Our integrated service
esses
growth trend.
strong
Corporation,
Senate Committee ver¬
in the light of its
the
Senate
share
beginning to challenge the
indus¬
proven
new,
In fact
chemical
chemical
the
and
tries
its
Invest¬
and Company Expansion.
for
Projects
of
curities
sion of the bill,
"The
Selection
•
of a
through the medium
strong support by
panies.
>;•
CHEMICALS?
relief
of
published
report.
Further, the
right of judicial review as origin¬
ally set forth under Section 516
of the Tariff Act of 1930 was re-"
stored. It seems reasonable to as¬
sume
that the Congress will ac¬
cept
Chemical
for
Stocks.
'S
7
Use.
clear
must
it
made
rejection
its
claims
Analyses.
Product
New
House
the
,
the Tariff Commission
justify
casts.
•
and
amendments
Fore-
Profit
and
Price,
Demand,
1.
retained
mittee,
that
Norman
Represen¬
bill, as unanimously re¬
out by the Senate Com¬
"The
Treas¬
F. Adams,
Co., and E.
Peterson, Equitable Se¬
New
ported
Consolidation Studies.
Merger and
Bank,
and
Thomas
Adams, McEntee &
urer,
"(3) That a provision should be mittee
approving
the
Trade
duties on modt
chemical products to the max'i- contained in the Ac(. itself making Agreements Extension Act. It was
mandatory
the inclusion of an asked that the Chamber re-ex¬
num extent permitted b,y law, i.e.,
a 50%
reduction from 1945 rates. escapes clause in. any trade agree¬ amine its position and, if possible,
ment.
It was pointed .out clearly make known to the Senate that
Wl)ile this, blanket refJuction may
that
the
present escape clause, it does approve the amendments
tendjto relieve many shortages of
Critical chemicals at the present created by Executive Order, is so to the Trade Agreements Act a's
investors in:
underwriters and
National
*
the
fore
de-
W.
Milhau, Chase
Miralia
T.
David
regarding its testimony be¬
Senate
Finance Com¬
States
Guar¬
Green,
be withheld
countries.
the Association made
to the Cham¬
Commerce of the- United
formal
P.
Vice-
Inc.,
ate hearings,
a
Mc-
J.
Morgan & Co.,
Another amend¬
provided that concessions
"Prior to conclusion of the
were
B.
Elroy,
under the Act should
Act;
Trade Agreements
officers
producers.
from Iron Curtain
the
under
made
Co.,
fix points below which
without
days
ment
conditions.
&
Stuart
duties cannot be reduced
tic
Act in the
T.
David
products listed
for trade
agreement negotiations in advance
a of the neso iations, and within
has served
manufacturers,
process
Street.
be gate
to study the
Act
of
most important
the ones relating
passed by the House of
chemical and
West Seventh
point procedure under which the
Commission must investi¬
organization
Aries
associated
now
Franklin & Co.,
Municipal Bond Men
tatives.
The
B.
215
by the
amend¬
passed
several
as
contained
House
the
published May 9, 1951,
our government has
import
is
Samuel
with
applies.ion.
each
on
Schlaifer
E.
Chronicle)
ANGELES, Calif.—Arthur
LOS
guard against injury or threat of
injury and issue a written opinion
based upon such findings of fact
overall
the
that
similar to the International Trade
a
Tariff
Congress
of
Committee
should
Results of the Torquay dis¬
sions.
reduced":
INDUSTRIES
recom¬
Association's
this will give the opportunity,
o
board
of directors and a
staff
spread
squarely on the record
Tiember presented s atements op¬
carefully documented studies of
posing further chemical conces¬
the effect on various industries of
hairman
and technical aspects
the
Joint
.
commercial
definite
"
That
"(2)
S. C. — Arthur
the
Klugh, Jr. is engaging in
member companies to appear per¬
a securities
business from offices
sonally. A large number of rep¬
at 1105 Stephens Street.
resentatives did "appear, and the
For the financial,
three
extended for only one year;
presented a brief on
general subject and urged
ANDERSON,
i
been
condition of Organization Charter and if and
escape is that imports must have
when
hearings are held before
increased.
Congress, the MCA will make
"It
was
proposed
that
the presentations on this subject."
escape clause be so worded that
appearance
made
"(1)
"The MCA
Millwee
before ihe
Ways and Means Commit¬
Jan. 26, 1951, and before
an
mendations:
dyes.
Klugh, Jr. Opens
A. M.
-
negotiations have
completed — the
first
at
Geneva, the second at Annecy,
three rounds of
Miralia, of Halsey,
was elected Presi¬
those were
to dent of the Municipal Bond Club
House
the escape clause by which-do¬
at the association's annual meet¬
tee on
ing
at
the
mestic producers may seek relief
the Senate Finance Committee on
Sleepy
Hol¬
through the* Tariff Commission" if
Feb. 28.
He presented a general
low
Country
he is injured by a irade agree¬
picture of the chemical industry ment concession; and the peril
Club.
Other
Manufacturers Associa¬
Chemical
Hearings
tion in
held by the Committee for
Agreements
"Trade
to a
that
"Third,
The Association
opposed
the Asso¬ proposed tariff legislation affect¬ tion
ciation's
member
companies, ing the chemical industry. Ac¬ ratification of the Havana Char¬
cording to the Report:
ier in briefs and appearances be¬
which account for about 90% of
"The past year has been the fore
the House Foreign
Affairs
total U. S. chemical production.
"This accident rate is less than most active and eventful year in Committee last year.. The State
half the
national average," Dr. tariff and related matters since Department has announced that it
inauguration of the Trade Agree¬ will not push for ratification byA. G. Cranch, of Union Carbide &
ments
Act.
In
some
respects, Congress, and it seems unlikely
Carbon Corporation and Chairman
of the association's safety commit¬ progress encouraging to the chem¬ that there will be any further ac¬
ical industry was made. In otners,
tivity on this matter in the near
tee, said, "and lower than that of
the industry may suffer adverse future.
\
any other industry
except com¬
effects following conclusion of the
munications."
this,
Under
schedules.
overall
condition of escape and
ment as a
with
meets
countries concurrently, each
negotiating as to its concessions
on imports with its principal sup¬
pliers with such bilaterally agreed
concessions
then
multilaterally
considered
and encouraged into
many
injury must
France, and the third at Torquay,
trade agree¬
England. GATT in many ways is
the
that
be attributable
Tariff and Trade
States
United
the
and
"Second,
potential
time status may be severe.
and
prevailing
actual or threat¬
must have resulted
development that were un¬
from
under peace¬
harm to our induslry
Association, Inc., atten¬
Chemists'
tion
of
achieved in 1950 by
was
f
.
ened "injury
in the face of wartime con¬
ditions, nevertheless the
in¬
many
becausei of three rea¬
this
jury;
tariff activities have been
Trade Agreements Act.
lime
Annual Report of
the
membership of the Manufacturing
the
Association, Inc., at
ing Chemists'.
producer has
foreseen
In the current
Manufactur¬
released by the
ures
.
.
Agreements on
though the domes.ic
suffered serious in¬
stances, even
Chemists'
of the Directors of the Manufacturing
Association, Inc., says past year's
most eventful since passage of
the
places in the country in
to work, according to fig¬
Chemical plants are among
producer, in
domestic
Regarding U. S. Tariff Policy
than half of
Accident rate less
loosely and defectively drawn that
it affords no relief to an injured
ChemicalIndustry's Concern
Chemical Industry Has
.
.
(2560)
12
General
39 B^
INC.
,,W.„
New;
M
Volume 173
Number 5022
The Commercial and Financial
Chronicle
v\
.
(2561)
thereby creating
By ERNEST R. ABRAMS
Company
Ownership
of
electric
utilities
be
political football in
a
the Pacific Northwest.
are the
adequacy,
No
quality
of
as
service
There
thing for 50
Within
consid¬
Grand
palities
ized
and
Utility
Districts
are
tions
which
be¬
are
legislation
under
adopted
Deal-Fair
Deal
by our New
Administrations.
In
adaition, Federal, State and
local politicians of the
area
are
jockeying for position
splu-up
of
in the pend¬
privately
electric systems.
owned
If this trend
con¬
tinues, electric service in the
Pa¬
Northwest will be rendered
by isolated publicly-owned distri¬
systems, supplied by
power
generated at tax-free public
power
plants, with a consequent loss of
the economies that have
been ef¬
fected over the past 60
years
private enterprise, which have
sulted in a
steady reduction
rates
One
to
the
of
by
re¬
important
results
of
of
$5b0,000
bonds in 1902 to finance the
struction
of
municipal
a
system, which
was
and
by private
companies.
capacity will total 2,160,000 kw.,
making it the world's largest sin¬
gle
of
source
the
end
of
power
supply.
By
Further, the Federal
Gov¬
ernment has millions of. kilowatts
of additional
power stipply in con¬
struction
ana
projected.
It is
not
surprising, in the face
of this huge
publicly owned
generating capacity, tnat privately
amount of tax-free
owned electric utilities in the
find
the
area
difficulty in hiring funds
expansion
their
of
own
for
gen¬
erating plants.
Tragedy
con¬
electric
originally in¬
of
Power
Puget
&
Sound
mixed.
are
standpoint,
From
it's
economic
an
almost
disas¬
as
point
where
it
became
the
dog" in the fight for sale of
in
Seattle, because
emption
enjoyed,
and
exerted.
It' had
the
a
"big
power
of the tax
other
and
to
ex¬
when
as
driving
In
car.
drinking whiskey
are
1930,
mixed in the
well
ahead
same
the
of
Washington
law under the provisions
a
of
tric
"pressures"
lines
it
down
utility facilities within
confines
But
tney had
leling those of Puget Sound Power
Light, while huge hydroelectric
Under
were
away places
supply.
established
as
a
in
far¬
of power
source
In
their
prices determined
State
Federal
or
the
by PUDs
or
mu¬
be
must
PUDs
and
six
munici¬
palities, which have started con¬
demnation
suits against portions
oi
Puget Souna's properties, must
compose their differences.
by
Court
up
areas
far
beyond
their
(3)
bid
price and be assured of the ability
of the PUDs to raise the
necessary
funds.
that
To
be
sure,
promises
Federal
exemption
exactions
from
sells
now
at
high prices. Whether or not they'll
off is something else. You can't
pay
foreclose
on a
tric .system,
our
publicly owned elec¬
under the
rulings of
Supreme Court.
On
Light
head,
confines.
This
Puget Sound Power &
had
pointed
gun
a
at
its
as
early as eight years ago.
Although not the originator of
the
public ownership idea in
Pacific
Northwest,
Roosevelt
Franklin
added'fuel
when, in the
course
of
the
Oregon
PUD
little
a
powers
later,
were
law, set
condemnation
little
a
and, where directors
to
the
utilities
development
Columbia
then
called
of power sites
on
folks
taxed
Power
1, .1949, Puget Sound
Light sold iis electric
6c
properties
in
Snohomish
County
and on Camano
Island, which pro¬
duced about 12% of its 1948 elec¬
tric
operating
No.
1' of
some
revenues,
Snohomish
to
$16.5 million and used
tion of the proceeds to
March
b,
1951,
consummated
tric
lor
por¬
Seattle,
exception,
to
that
as
well
electric
as
on
with
a
munici¬
area.
utilities
Finally,
April 9, 1951, Puget Sound
deemed
re¬
$23^505,000 ofJFirst 41/4%
bonds at 104V4
and accrued inter¬
est, which pulled its funded debt
down
to
was
or
less
$35,613,000, including
borrowing of
Metropolitan
in
May,
which
1950,
were
like
a
Life
sum
the
Co.
of
proceeds
used to retire the
in the
area
ment.
was
The
local
politicians,
somebody
■what every
was
vj.
2
-w,
other Federal
knew
Water
Power's
slopped
service
area
over
it
things
an
State
across
State
Superior
lines.
Court
County—rather
"soft"
a
So
the
Stevens
of
court, it
would appear—held the proposed
sale invalid. It's an even bet the
public
power
-
Washington
•some
Water
ton
minded
-
boys
of
and Idaho will
figure
Washing¬
to whittle
scneme
Power
diviae
ana
down
On April
Power
&
ments
into
to
state
jurisdic¬
26, 1951, Puget Sound
enterea
into
glittering
get
operating agree¬
Chelan County PUD
No. 1, under which the immediate
expansion
of
at Puget
be undertaken at the
Arthur g.
Under
en¬
our
them.
in
Thompson Is
CINCINNATI, Ohio—Arthur C.
Thompson has become associated
with
West¬
heimer
and
Company, 322
Walnut Street,
members
o i
the New York
and
nati
Cincin¬
Stock
Exchanges,
the
in
Mutual
Fund
Sales
Department.
Mr. Thompson
been one
o
f
Cincin¬
nati's
most
distinguished
rail
and
last
Arthur C. Thompson
chieftains
year
retired
as
service with that road.
general
fall
of
1950
(Special to The Financial Chhon[cle)
HILLS,
of
thur B. Hogan is
engaging in the
dis¬
1673 Waynecrest Drive. Mr.
Hogah
was
formerly
Price &
up
as
of offers to buy
.-,C:The offering is made only by the
Prospectus.
a
a
partner in Hogaft,
Co.
"*
of record only
of these securities.
matter
any
NEW ISSUE
123,000 Shares
Kropp Forgf/Company
Washing¬
Oregon
about
Common Stock
(Par Value 33^
per
Share)
to
Price $4.00
per
like
&
that of Puget
Light in its en¬
Copies of the Prospectus
decided the
validity
this
of
in
but,
on
law
in
Jan. 5,
Share
which the
are
any
qualified
Prospectus
may
of the several underwriters only in States
to act
as
dealers in securities and
legally be distributed.
Supreme
Gearhart, Kinnard & Otis
the
Incorporated
Court
L. D. Sherman & Co.
County Supreme Court, which
1949 Act
tutional, and,
a
be obtained from
1951,
upheld the decision of the Thurs¬
refused
may
in which such underwriters
on
was
Feb. 23,
rehearing
of
Morgan & Co.
consti¬
1951,- it
the
case,
June 20, 1931
j,
Calif.—Ar¬
securities business from ofifces at
that
fast Cooking
pf
-
Hogan
Opens Own Offices
BEVERLY
public-power-hungry Federal
was
years
-
Arthur B.
the
of
Puget Sound
the
Government
enter¬
With Westheimer Co.
outlay of the
terms
alone.
of
trimming and private
a
passenger agent of the New York
PUD,
both
ful¬
not
are
generating facilities •Central
Sy stein after 51-
Souna's pock Island gen¬
erating plant on the Columbia
River in central Washington is to
covered
promises
an
more
prise is again "down the rat hole "
50-
and
with
promised
has
Light
lease
year
it
projects, the people
were
filled, the taxpayers of the nation
on Wall
Washington
into Idaho, which
interstate utility, and
Washington PUD couldn't boss
made
area
abundance of kilowatts. Once
discovered
mat
—
the
of
in progress,
utility analyst
Street
is the most critical
country—although with the
sens¬
there
out
virtual
coming of Bonneville, Coulee and
;
Wnile tne fight
and
seizure
the
required.
Washington
ton
and
Federal
avoids
supply, the Pacific Northr
in the
ing a possible political advantage,
jumped in with both feet.
issue
immediately attacked
the
As might
proceedings were started
high
government
officials,
condemnation,
agreed to the arrange¬
The
by the Federal
Government "to prevent extortion
people—electricity."
Court
As (ill of. these securities have been sold, this advertisement
appears
is neither an offer to sell nor a solicitation
and
power
a
from
Insurance
tirety and split it up among them¬
selves, provided every other PUD
State courts
age a wider use of that servant of
by boys "down
they objected.
Sound
broad
PUDs, acting jointly, to
purchase a multi-county private
for
encour¬
and
for
arrangement
more
Power
River
set
farm"
tional hunks.
pality for $2-3,834,232, which cov¬
ered the materials and
supplies on
within the corporate
rates
the
under
west situation
revenues,
its
"city", cus¬
ran tne risk of
having their
tomers
lines
1949, the Washington State
Legislature adopted a law which,
among other things, permitted two
system
fire
ating
to
emergency. From the standpoint of
P.'s
but
60% of Wasning¬
Power's annual oper¬
Water
ton
unusual
necessity
over
Sound
Puget
W.
extra
was
under the conditions of a national
contained in any PUD,
Again,
the sale of its elec¬
in
facilities
small
a
retire $7,-
357,0Q0 of its funded debt.
on
PUD
County
W.
ALCOA
In
against the public and to
the
in
power
ownership of elec¬
and
the
could
Sound
campaign
Portland, Ore., on Sept.
21, 1932. he first lauded the vir¬
tric
of
PUDs
D.
speech at
tues of public
ton
the
a
not
is
contributes
a
Sept.
of
needing
ad
confiscation of its project and pre¬
serves the effective
functioning of
its power pool—a vital
common
Wasnington
provoked a
confused
situation in the public power
pic¬
ture of the State.
Since Spokane
security
any
10%
plant
forestalling
Puget
customers,
State
the
by
Washington, which
about
served
and
with
Island
Situation
its
in
of
serve
enlarging the plant comes about
because the Chelan PUD has Rock
was
four small fuDs
to
eastern
be
satisfied
of
to
ex¬
be
corporate
in
Puget Sound's stockholders
must
Light
nolanigs
electric
any
Peculiar
a
Water Power
on
area,
sev¬
Rock/ Island
miles down tne river/,
six
This
the
excuse
borders.
to render all electric
service with¬
the
6c
stock
must
participate in, or consent to,
plan of acquisition.
ana
taxes
con¬
Little change
power
build,
The proposed sale by American
Power
(2) All of the eight PUDs,
lying
within Puget Sound s service
bonds to
finance their acquisitions without
a
voice of the electorate, consent
in
Provoking
owned electric
whose service
1943, the Seattle City
Council stated that, at the
expira¬
tion of Puget Sound's
franchise in
1952, it was the intent of the City
meant that
by various
was
the
aluminum
in trie surplus account.
mane
done:
Six
sumed
pro¬
seize
right to acquire
no
far-fiung privately
systems,
tended
plants
is
tne
added
bal¬
$1,975,109. Horn
erance cnarges.
these
The
of the Seattle sale
ceeds
com¬
to
on
proceedings.
the other side of the
street, paral¬
&
at
juries in
advantages it
pole
of
ance
outstanding.
plans
plant
leaving
the
trous
and
which Public
Utility Districts,
supply current only for or PUDs as
they are commonly
street
lighting and other munici¬ called, could be created.
Countypal purposes. But, as so often hap¬
wide in scope, PUDs could be es¬
pens, this tiny baby grew to enor¬
tablished by popular vote and,
mous proportions.
once
formed, had the power to
During the first 40 years of its condemn all privately owned elec¬
grew
that
and
ibou,
$15 million 3% note, due in ly60, agreement, the generating station
(would still be 'owned by Puget
and left
only 2,177,879 shares of
Sound, but, in turn for installing
$10 par va'ue of common stock as
extra
generators, their output
an added
claim against assets.
would flow to the PUD and to
The $15 million note evidences
Puget. It was a "sweet" deal for
tended to
existence, "City Light"
mon-stock
,1-
prior preference
3r,
only the funned debt and the
consum¬
nicipalities, three things
hand
Light
Puget Sound Power & Light is,
perhaps, tne horrible example of
what can happen- to
private enter¬
prise when power supply and poli¬
tics
jump,
be absorbed
can
1953, if they proceed
as
anticipated, the combined ca¬
pacity of the Seattle and Tacoma
generating plants will total 1,149,-
000 kw.
must
power
$5
May
enacted
accounting system employed, were
satisfactory to the voters, they ap¬
issuance
power
production
issue-of
Stockton
Roosevelt pronouncement, the vot¬
ers
of the State of
operation, under the peculiar
the
ex¬
stalled generating capacity of 564,kilowatts and Grand Coulee's
The
privately owned Spring Hill Water
proved
of
power
in¬
public ownership
of
public
utilities
in
the
Pacific
Northwest was the
purchase in
1890 by tile
City of Seattle of the
tnat
with the
in
of
System, and since the
author¬
By the close of 1951, the Bonne¬
ville
project will have
an
in¬
householders.
first
been
000
ing dismem¬
bered
the
Bonneville
and Tacoma munici¬
agencies
power
of
priyate power
companies,
R. Abrams
his
both
1933,
and
which, coupled
tric
the
hurdles
are
conflicting political rivalries. Be¬
fore tne en tire
Puget Sound Pother
& Lignt
system, what's left of it,
(1)
after
supply
to
effectively
aiscouraged any addition of elec¬
por¬
of
time
projects had
puolic
each
facilities
in
Coulee
expansion
and
other, for
he
pal systems with their vast hydro
generating capacities, committed
them¬
among
selves,
with
ers
politician,
a
snort
a
isting Seattle
fighting
stances
isn't any
years.
inauguration
In¬
power
Public
of
still
Pacific Nor tnwest
mention that private en¬
to
stead, munici¬
eiectric
mere
tney
Conflicting Political Rivalries
terprise had been doing the same
of
eration.
bution
What
.
rat hole."
expected
failed
longer
ana price
prime
cific
is
acquired
can
enterprise is again "down the
ing
be
tire
private
tnmg as a ' free lunch" and
tney will pay the hiaden costs of
tnern elccuic bills
in taxes.
Grand Coulee public
power projects, peopie of area are
short#
of electric
power, while taxpayers gst a
trimming and private
Ernest
learn
of
sucn
horrible example
happen to private enterprise when power supply
and politics are
mixed, and concludes, despite bonne grille and
has become
could
consumers.-
mill must
Mr. Abrams describes encroachment of
public power projects
on
privately owned interests in Pacific Northwest. Cites
tragedy
of fuget Sound Power and
Light
of what
systems
meir
uy
vehicle through
a
uklk acquAoiumi
wiAiwi
power
13
:iT
The Commercial and Financial Chronicle
14
it
mean
WILLIAM II.
By
Assistant Treasurer
of
Economist
defense
Chemical Co.
possible trouble spots in current economic situation, and, con¬
cludes, despite uncertainties, American industry will expand.
rowed
segments of industry
those where there is
overcapacity. Outlines seven step approaches^ in
both external and internal factors of risks and in
danger of
evaluating
creating
new
Six months
calculated risks
taking financial risks.
ago
talk
a
would
on
of
the
to
aca¬
hue
cry
at
.time
expectation.
the
At
demic interest.
The
the
and
which
62%
are
86.4%
of
electricity
refrigerators,
of
postwar models.
for
Wired
electric
have"
for
time
present
homes
that
was
year appears
a
sonable
have
even
been
to be a rea¬
This means
probability of output only 55%
60% as large as 1950.
hicles
not
greater
production rate in 1950 was
units.
An important
demand for refrigerators is from
The
ex¬
greater
pro¬
duction
which are estimated
800,000 units during the
next five years. In order to main¬
tain the 1950 rate, 5,400,000 owners
would have to junk their refriger¬
ators each year.
This is hardly
of
to average
in
weeks
have
we
seen
hesi-
some
'
1
o
with
We
a
Winfield
likely.
:
There
t up¬
e n
swing.
H.
William
this
in
tancy
'v i
homes,
new
everythin g.
However,
recent
million
"6.2
and
are
confronted
now
machines
I seri¬
confused situation.
washing
for
market
the
that
rea
>
evidence before Ko¬
was
reaching the satura¬
was
point. In 1949, unit volume
27%, and prices 28%.
This is not surprising since 72%
of the wired homes have electric
tion
if we face a major
business, but I think
might be fooled by the
doubt
dropped
downturn in
that
we
apparent demand created by scare
million of them ac¬
quired since the end of the war.
I seriously doubt if the produc¬
tion
be
Possible
Trouble
consumers'
The
industry
Spots
durable
sumer
of
many,
There
has
been
many
an
1950
last
At
look at
a
risks.
a
spite of
end
of
1950
there
were
sets
pop¬
a
than
more
year.
7
to
8
million
This market can
up for declines in
tute
prior to the
that
forecast
total
new
con¬
struction
activity was expected to
1951, then fall off rap¬
idly until 1954.
This is another
rather
sobering thought on the
ket of about three million cars.
business situation, and it should
Making allowance for commercial
war.
The
life
useful
of%a car is
currently 13.6 years. This indi¬
cates an actual replacement mar¬
increase in
be taken into account in calculat¬
"
*An
the
address
60th
Annual
inois Bankers
June
by
14,
Mr.
before
Winfield
Convention
ef
the
ing risks.
Ill¬
The
non-banking
a
a
the
the greater the
and
the greater the
Yet
change.
to
At
stabilization
final
there is competition from
new products, profits are low, and
there is danger of overproduction.
that
find
We
if
lessened
one
we
our
get
risks
are
in early
in
a
gain from the past strong growth situation. Sales of
is the law of change itself. Noth¬ mature products bear the full im¬
we
can
I think
man
three developments
see
can
second factor is that
will expect you to fur¬
the necessary funds for "use¬
In calculating
we
different type of
are
likely
prod¬
trend.
to
to
risk.
(3) Another significant devel¬
is the growing tendency
the government to regard the
continuing operation of a com¬
pany as a matter of public wel¬
engineer
such
that
fact
The
fare.
is losing money /:"*
be a good enoug
shutting down inefficit;4
..V
V.;
pany,
longer
This arti¬
to furnish the negessary funds
for useful
-The two can
because
over
the
projects?
reconciled
be
the
are
product
me
take
going
situation
a
up
in
and some down. The
the fourth quarter of
1948 illustrates the danger
few moments
to
ing
of rely-
While the FRB
production
was
at a
on an average.
of
index
in
..
public will expect
the
that
ond,
you
new
has al¬ cyclical behavior gives us a risk
ways been able to make profits probability. By projecting growth
when it has a growing volume. trends, figuring how much a busi¬
The first thing we want to know ness decline will affect volume,
to lower levels and, sec¬
go
With this
the ups and downs of a
cycle. At every phase of
business cycle some industries
business
government
■
first, that business
—
the
consider peacetime peak, some industries,
calculating
risks such as rubber and leather, had
whether it be in expansion, ex¬
already dropped 8% to 12% below
tension of credit, or determination
a year earlier.
of inventory levels.
v
The combination of growth and
conflicting esti¬
these
do
(2) The second calculation is on
prices
the behavior of volume and
tell you of the factors we
happen to be in the same business.
mean
moneymakers.
*.
risks.
y important
ficial production may play havoc
with some of your customers who
What
glamorous aboiit
phthalic
anhydride, or
These products are ov^r
25
years
old. ,But because of
growth
they
have
been
good
•
s
will furnish the money.
growth
phenol,
aspirin.
Calculating Risks
Let
ations., Employment
mus
oe
maintained, and the, government
will
come
company,
a
else
or
will do it.
the Waltham Watch Com¬
as
mates
loans
will
the
in
fill the gap
during
seasonal loans and capi¬
between
tal
are
There is nothing
vide interim money to
opment
of
ucts
product to pro¬
a new
future customers.
our
be the companies whose
uation than to balance sheets and
also find that these
We
projects—otherwise the gov¬
them. Wit¬
of dollars in research each year
ness the pressures that have been
exerted to expand steel, chemi¬ trying to make existing physical
assets obsolete.
cals, aluminum, etc. To provide
these funds ycu may have to go \* While I realize that commercial
beyond
your
present scope of banks do not make capital loans,
operations and be confronted with the financial fraternity may have
ernment will provide)
a
want for
•we
After
all, industry is spending millions
ful"
These are the ones which
grow.
risks in industry
attention to the sit¬
more
pay
the value of tangible assets.
nish
industry will continue to expand.
(1). American
industry
is where is the product
in its long- .and estimating potential capacity
There are we arrive at the probable range
three stages in the sales history of operating capacity for the can¬
of any product.
During the es¬ didate project.
tablishment phase sales expand
(.3) The third consideration in¬
slowly and there are many busi¬ volves the seasonal factor, with
ness
fatalities.. When
once
the which you are well acquainted
product demonstrates uses and but which industry forgot about
term
problem and your problem
calculating risks is to select
those segments of industry which
cycle of growth.
..
Our
in
expansion
need
and
there
where
those
overcapacity.
is
Let
stay out
danger
show
me
of
of
New Officers of
Manufacturing Chemists' Assn.
you
why I think we are in for further
growth:
foregoing may appear to be
prediction. I do not
Assoication, St. Louis, Mo.,
1951.
grows
company
resistance
longer term I think that American
Recently.the Econometric Insti¬
than double the average
of the last five years
1947
the
hardly make
other appliances.
models. Automobile output in 1950
was more
the
indicates that the market will not
postwar
were
of
Recent slowness in TV sales
sets.
39.7 million passenger cars regis¬
tered, of which 56%
know
industry produced 7.4 million TV
absorb
the
all
production in
below
43%
We
The
to get saturated as
and
a
conservatism
(2) The
for
produced.
out-distance
stage
the public
ularity of television. Last year the
details.
some
was
level.
of
long will this peak demand
if we do not have a war?
Let's take
as
;
Day over 62 million
1948.
early
products.
avalanche
:
been
have
market began
elec¬
.output in the postwar period, but
how
V-J
Since
trical appliances—is a major con¬
million units can
of 4.2
rate
maintained.
radios
goods
automobiles and
—
17
washers,
buying, inventory building, indus¬
trial
construction,
and
defense
spending piled on top of normal
consumption.
company
a
to
competition—otherwise it invites
competition
with
the
inherent
Essential
rather spectacular
In
,
ously
fast
.
'
pansion
move
ing—nothing ever remains static. pact of a business decline. How¬
For. a company, its markets, its ever, a downturn in business may
which may affect your operations products, and its services are con¬ only slow up the growth of other
tinually changing. How, then, can products.
a%i influence your thinking:
Not only does this growth fac¬
a
company reconcile its inherent
(1) The unpegging of U. S.
conservatism to changing condi¬ tor apply to expansions, but also
"treasury security prices may be
tions? Grim experience has shown to the extension of credit.
We
an
event of long-range signifi¬
us
a
that we pay too high a price have
saying in industry that
cance.
To" me it signifies the end
for conservatism. We have found anyone can pass credit on the top
of artificial low ratcis and means
that we must take risks or we are 30% of the customers because they
higher interest rates and lower
left with outmoded products and are all AAA risks. Also, it is not
bond prices.
Banks, despite the
obsolete plants. We reconcile in¬ difficult to pass credit on the bot¬
fact that they may sustain some:
herent conservatism with chang¬ tom 30%, who are perennial poor
temporary losses on their govern¬
risks or dead beats.
But in the
ment portfolios, should, over the ing conditions by taking calcu¬
lated
risks—the
subject of my middle 40% there are a number
•long run, benefit greatly in higher
talk. • ' "
of
small
companies which will
interest rates. '
As
exports, an over-all average of
from 4V2 million to 5 million ve¬
potentiali'ies,
growth the chemical industry is in¬
herently conservative. The larger
future demand.
on
that I
growth, and
population
vehicles,
My subject concerns the factors
we think
are important in
1
Thursday, June 21, 1951
.
real
must take
we
Taking
Risk
Significant Banking Developments
chemical products.
which
this
view
and
truth
Says problem in taking risks is to select
which need expansion and stay out of
,
.
must
this
do
calculated risks.
boom with the proper
perspectivei. Cold facts and cold
logic indicate that during the past
year we have not only used up
part of the war-created demand,
but in scare buying we have bor¬
chemical concern calls attention to
leading
spending
To
horses.
present
WINFIELD*
Economist, Monsanto
and
such, but I think that
in
as
should not place total faith
we
Calculating Risks in Industry
'•
.
(2562)
gloomy
Outlook
Term
Longer
People
markets,- and
are
the
population growth in the United
States provides a continually ex¬
panding
of
number
More
than
were
added
17
consumers. -
millionr consumers*
the
in
decade.
last
ten years it' is
estimated that our population will
increase
another
I6V2
million.
the
During
These
& CHEMICAL CORPORATION
in
,
,
and
}
more
BANK OF CHICAGO
NATIONAL BANK &
TRUST COMPANY OF CHICAGO
a
of
lies
which
been
Once
the
Agent
Registrar
,
✓
t
.
„
outside
be
United
the
if they got their
of living above the sub¬
of
population
.
growth and increasing
in
connection
Common
with
Stock
and
the
listing of the Corporation's
4% Cumulative Preferred Stock
on
the
i
consumption
sistent
ists'
at
.
George W. Merck
Chemicals, Inc., and Air
its
recent
ical
annual
meeting here.
Chem¬
Mr. Munson
retiring President of Monsanto
Chem¬
Co., in the position.
William
duPont
cle
George W.
was
has
demand
per
created
for
the
capita
an
in¬
United
H.
Ward,
Vice-President
may
ferrupt but do not stop this longgrowth trend.
Our problem
and yours will be to pick
the right
&
Co.,
was
Merck, Board Chairman
named President of the
and
elected
a
Director
of E. I.
Vice-Chairman,
and
of Merck & Company, Inc.,
Association.
Oostermeyer, President,
Shell
Electrochemi¬
cal Co.; R. B. Semple, President, Wyandotte Chemicals Corp.;
George B. Beitzel, President, Pennsylvania Salt Manufacturing
Co., and Felix N. Williams, Vice-President, Monsanto Chemical
Corp.; R. L. Murray,
President, Hooker
Company.
Other
cycles
Nemours
New directors elected were Jan
Ingraham,
Business
of
Reduction
elected Chairman of the Manufacturing
succeeds William M. Rand,
in-
term
was
Association
States.to expand its industrial ca¬
pacity.
MIDWEST STOCK EXCHANGE
Company, Inc.,
Chemical
combination
The
Ward
H.
SULPHUR, W. Va.—Charles S. Munson, Chairman
the Board of U. S. Industrial
purchases.
huge market the
world's
population
sistence level.
Transfer
William
Munson
WHITE
a
States would
ar,
S.
Charles
consume
products.
multitude of
the
standard
as
has
to
level, funds are avail¬
what
Think
96%
/
history
the standard of living is above
able for
THE CONTINENTAL ILLINOIS
FIRST NATIONAL
peo¬
amazing facts
capacity
subsistence
THE
additional
an
most
economic
more
of %
the
of
America's
t
'
the appointment
force
expansion of
America's productive capacity.
One
announces
million
34
ple-will
INTERNATIONAL MINERALS
'
next
officers
elected
were:
Vice-Presidents—Harold O. C.
Chemical Co., and Raymond C.
Gaugler, President American Cyanamid Co.; Treasurer—James
W
McLaughlin, President Bakelite Company; Executive VicePresident—Robert L. Taylor; Secretary—Maurice F. Crass, Jr.
President
General
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2563)
during
the
boom.
and
war
There
postwar
>
big moneymak-
are
ing possibilities in handling the
seasonal factor correctly. A com¬
&
Customers' Brokers
Co,;
Herbert
Auerbach,
Martin
Pollak
C.
&
Fredericks,
Richardson;
August, Wickman, Abbott, Proctor
& Paine.
Lericbe, Alien & Bo.
'
A.
Fendel, Jacques Coe; *
Members of last year's Nomi¬
Gross, Bear, Stearns &
pany has to take inventory risks
nating Committee who made the
Co.; Ernest R. Grauer, Havden,
The Association of Customers'
to get fullest utilization of
selections are: Albert F.
its ca¬
Stone & Co.;
Frank,
Stanley Graff," Foster
pacity. Each industry has its own Brokers will hold their regular &
Ladenburg, - Thalmann
&
Co.,
Adams; Ernest L. Hockstuhl,
seasonal
pattern which must be quarterly meeting June 28 at ,3:45
Chairman; Mrs. Evelyn BrandtStokes, Hoyt & Co.; Walter H.
accurately determined. One of the p.m. at Schwartz' Restaurant. A
Valverde, Gruntal & Co., Secre¬
McKeag,
Jr.,
Merrill
Lynch, tary; Joseph
pertinent questions we ask about new Nominating Committee is to
Cabbie, Abraham &
Pierce, Fenner & Beane; Alton B.
be
elected
from
the
a-proposed new product is whether
hollowing
Co.; Gerald
Groesbeck, Merrill
Plunkett, Or vis Brothers; Benja¬
slate presented to the member¬
it will add to production
Lynch, Pierce, Fenner & Beane;
peaks or
min
Powers, Mallory, Adee & Co.; ; Paul
fill in valleys, and whether
Morton,' Peter P; McDermott
it will ship:
Frank Saline,
Goldman & Co.:
Miss
Beatrice
M.
utilize
& Co.; A. E. Rinehart,
Bougie,
seasonally idle equipment
Eastman,
Cotven & Dillon &
Francis I. duPont & Co.; Nicho¬ Sydney S. G. Schatz,
or excess raw
materials.
Co.; Anthony Smith, G.
Co.; J. Harold Smith, Hirsch & H.
las E. Crane, Dean, Witter &
Walker & Co.; John
Co.;
(4)
The fourth
Tilney,
consideration, John
Co.; Otis Lindley Shurtleff, Laird,
Eisen, Tobey & Kirk; Edgar
whether we are
Wood, , Walker & Co.; Joseph AlBissell & Meeds; Alfred
trying to pick a
Vogel,
winning product or a winning cus¬ Ehrenthal, Ladenburg, Thalmann & Abraham & Co.; George H.
Willis, berti, Walston, Hoffman & Good¬
tomer, is the size and character¬ Co.; Adrian Frankel, Ungerleider Kidder, Peabody &
Co.; Edward win.
istics of the market in the
logical
marketing area, and we do mean
logical. With a 58% increase in
freight rates since V-J Day, the
Association to fleet
15
Albert P.
Formed in Des Moines
DES
MOINES, Iowa —Roy W.!
Leriche
merly
Inc.,
and
Ira
D.
Allen,
of Wheelock
for^-
Cummins,
the
formation
&
Company
to
general investment
se¬
announce
Leriche,
&
Allen
conduct
a
curities
business
from
offices
of
in,
*
economic
marketing
important.
creasingly
boom
war
that
some
going
has
day
to
be
The
obscured
frozen
In
to
firm
are,
J.
Boyle.
some
high
evaluating these
external- factors
of
try to be realistic in
risk
we
considering
internal factors.
*
(5)
or
How real
customers'
the
are
claimed
products'
HIGHLY PURIFIED WOOD CELLULOSE
advantages
when related to priee?j,:How
soon-
is
can
they be duplicated by com¬
petition? How close is the product
service
or
nies'
related
strengths
raw
to
in
materials?
the
Will
the
product
encounter
problems
of
produced
processing
by
wood
in
or
our
mills. It is used
by
,our customers
for
Americans
conversion to
opportunists, but in calculat¬
ing risks we have to rely on fun¬
damentals to keep us from follow¬
ing will-o'-the-wisps.
*(6)
material
raw
Rayonier by chemically
are
tomer
chemical
compa¬
know-how
Most
a
or
distribution
Rayonier research
cus¬
over a
period of
years
types of wood cellulqse, each with physical
stor¬
or
variety of useful products.
has resulted in development of
specialized
unusual
any
a
age?
Will we need a separate
shies force because we would be
and
selling through different channels
best results in
making the end products for
of distribution?
nical
service
fore
and
often
a
How
will
after
much
be
the
tech¬
needed
sale?
than
added
real
technical
which it is used.
be¬
more
because
or
assure
Quite
high profit picture is
apparent
chemical, characteristics which
selling
of
ex¬
penses.
i
(7)
-
Finally, in calculating risks
want
we
to have a good estimate
time required to make the
of the
product
think
project profitable.
L
will agree that most
or
you
estimates
again
optimistic. Here
the
see
capitalizing
growth.
too
are
we
importance
the
'curve
on
^
,
of
Viscose
of
Textile Yarns and Fiber
Rayon and Acetatd
The best xisk situation is.
after the product has gone
through
slow period of establishment
the
and
is in the expansion period. It
is at this stage that it is
"useful"
a
,
project with little risk from the,
impact of the business cycle and
danger of overcapacity.
no
This seven-step program in cal¬
culating risks
of
work
tance
will
and
think
concentrate
projects
to
are
bet
con¬
Our job,:
job, will be to
efforts
our
the
best
To do this requires
of
We
grow.
your
and
lot
over-all economy
our
continue
I
have to
we
right horses.
vinced that
a
But to outdis-"
competition
the
on
like
may seem
it is.
and
a
on
Tire Cord and
the best
Fabric
customers.
combination
long-term perspective and de¬
study.
r
tail
i
In
closing, I would like
that
mine
proach.
is
The
the
to
layman's ap¬
that industry
way
.!
■
note
;
;
calculates risks may not be perti¬
nent to your business.
However,
I think you will agree that some¬
one is going to build needed
ects
and
nance
someone
them.
Cellophane and other
Transparent Materials
proj¬
is going to fi¬
We have been
trying
hard to stick to the fundamentals
of demand.
that
the
we
It is
can
fields
which will
only in this
target
and
on
our
the
way
efforts
in
RflVOni€R
customers
yield maximum results.
With Charles Parcells
I
PRODUCERS
OF
HIGHLY
PURIFIED
WOOD
CELLULOSE FOR TEXTILES, TIRE
N C O
R
P
o
RATED
CORD, CELLOPHANE, PLASTICS
(Special to The Financial Chronicle)
DETROIT,
(
Mich.
—
Boyd
E.
been added to
the staff of Charles A. Parcells &
Montgomery
has
Co., Penobscot Building, members
of the Detroit and Midwest
Exchanges.
Stock
executive
mills:
offices:
122 East 42nd Street, New
York 17,'N.Y.
Iloquiam, Fort Angeles, Slielton, Washington; Fernandina, Florida
•
j
as- *
Lester
new
and
•
addition
basic
the
Cook
are
of
freight rates.
four
with
A.
fact*
these
of
sociated
Homer
Also
in¬
the
out
Equitable Building.
post¬
companies
some
markets -because
is
area
the
"
Financial Chronicle
The Commercial and
16
.
.
Thursday, June 21, 1951 *
.
(2564)
industry.
welfare of the chemical
Chemicals in the Defense Program
is
*
19 5 1
1
p
ted.
e
capacity for
making
thetic
syn¬
rubber,
chemi-^ >
heavy
Chevalier
W.
Col,
*"
Production of organic
organic, chemicals which are
the basis for
The rubber
'
••
La Pak, Raymond
CHICAGO,
'after the
Within the next-two
zene.
enough to fill 75 % of
supplies will permit considerable
from
"Extract
present
our
address, by
an
Col.
Chevalier before the National Association
of
June
5,
York
Agents, .New
Purchasing
1S51. *
**■
,
,
=
L.
City,
r,.,| '
py
in
total
synthetic fibers, and
plastics,
other chemical products.
many,
a
was
three
for
cept
bia
Riegel
Street
Shepard,
L.yle L.
advisory
46th
the
to
Co.,
and
Paper
Director of Colum-.
Bank's
Chemical
of
of¬
Avenue
Madison
fice.
Cashier
%
*
*
Company
Trust
Manufacturers
opened on June 16,
Kew Garden Hills Office
of New York,
its
new
at
72-71
service
years'
in
Army
Main
Street,
73rd
near
States
1943
from
Navy
to
new
1946
commission
where each held a
'!'■
$
retired
Bank
Trust Company and The
of
President
-
Farmers
Pratt,
Camden
City
York, on June 14,
anniversary of
New
of
year
*
a
*
Vice
International Banking Corpora¬
this
Company
bring the total number
of the company's offices to 109.
will
and
Stewart
„
tion,
Trust
turers
as
Lieutenant.
%
and P. H. Blakelock as As¬
This is the third
office opened by Manufac¬
ager
sistant Manager.
United
in the
served
Both
1946.
■
Lizars & Co.
Carbon
board
during World War II.
Mr. Davidson and Mr. Michalis
have been with the bank since
the
of
production
the
in
expansion
thereto
and prior
partner in Rawson
Chicago
in
quarters
increased
output." These
formerly an officer of Wheel& Cummins, Inc. with head¬
ock
increase
this will amount to-a 60%
with
105 South La
Salle Street, members of the Mid¬
west Stock Exchange. Mr. LaPak
was
of
election
the
of
Law¬
J.
operations of the bank's Stock & Avenue, Kew Garden Hills, Long
Bond Department since 1946, has Island. The new office will be in
been with the bank since 1923 ex¬ charge of Henry L. Fry as Man¬
Gernon,
&
Dayton
years,
It now
is up to 65%-, and almost a million
tons of total' capacity Is foreseen,
war.
F.
111. —Raymond
.
LaPak has become associated
tional
total supply
CHr.ONrcLc)
(Special to The Financial
Airlines, Inc.;
Treasurer and
Rafferty, in charge of
Mr.
1919.
F.
Treasurer
and
Textile
charge of the Loan Department
since 1944, has been employed by
the
First
National
Bank
since
chemicals
the short
Industrial
S.
U.
Riegel, Chairman of
Corp. and Riegel
rence
Gerdes,
Assistant
of
Vice-President
in
Most important is the addi¬
capacity planned for ben¬
gas.
production dropped to 40% of our
been
had
who
Co.; William P. Marsh, Jr.,-
Chemicals, Inc.; William J. Hogan,
E.
Mr.
Cashiers.
Assistant
&
President
Rafferty, Sidney W. Davidson,
Jr. and Clarence F. k^ichalis, as
idly the facilities to obtain these
chemicals from oil and natural
by the end of this year. Synthetic
William
of
Assistant
as
merich, partner of L. F. Dommer-
M.
is building rap¬
the industry
now
being licked;, in::fact,'.we
should have an.adequate supply
made
also
was
election
the
Vice-Presi¬
dent and the election of Maurice
which they
principally been made. But
have
.
to
est
Announcement
supply of coke, from
problem is the clos¬
Co., and George S. Young, Presi¬
dent of The Columbia Gas System,
Inc.
Mr. Jackson also announced
Gerdes
has been- bottlenecked by
rubber, plastics, and
synthetic fibers.-,;
American
of
already evident.;
is
and cer¬
cals,
tain
some
plans for
chlorine.
Chlorine output will rise to triple
the pre-Korea rate by some time
in 1952, and some of this growth
expansion is
ich
Navy where he attained the rank
of Lieutenant Commander.
cals, the most impressive
new
capacity concern
The largest
in
has been associ¬
ated with the First National Bank
since 1936.
He is a Director of
Consumers Power Company and
make
sulfuric acid are being built to
convert these increased supplies.
Among the other heavy chemi¬
been
ready
c o m
tives
1952. New plants to
time in
al¬
have
1952
demand
with
balance
in
ex¬
pansion in
President
Coopera¬
Assn., Inc.; Louis W. Dom-
Inc.; Leon A. Chapin,
Dairymen's League
of
Vice-President,
sulphur,
be possible to bring supply
it may
announced on June 13,
was
by Alexander C. N'agle, President.
Mr.
Thorne,
formerly 4 Assistant
conservation in the use of
And
further
York,
man, O. Parker McComas, Presi¬
dent of Philip Morris & Co., Ltd.,
of New
National Bank of the City
usefulness."
pyrites, and better
as
Vice-President
as
auxiliary
of
use
continued
its
to
of Edwin Thorne
of The First
election
The
and
Vigilant Insurance Company.
During World War II he served
for four years in the United States
sulphur de¬
new
the
such
sources
plans for
many
Several
opments,
capaci-
alone.
con¬
Raymond F. LaPak
With Dayton & Gernon
velopments are under way in the
Gulf area. With these new devel¬
an
in
tial
Sulphur is a longer range prop¬
osition.
expan¬
ty
full
a
Bankers
and
ETC.
CAPITALIZATIONS
support that is essen¬
render it the
increasing.
is
sion of
therefrom
gain
members
our
half of the chemical industry,
of coke.
requirements. Foreign pro¬
duction of natural rubber also is
-
11%
will
of
REVISED
ception of the comprehensiveness
of the association's program in be¬
rubber
McGraw-
according to our latest
planning
each
NEW OFFICERS.
We
urged.
BRANCHES
NEW
reading of this
*
metallic field, our
biggest supply problems lie in the
chemicals. The chemical industry,
Hill survey,
News About Banks
CONSOLIDATIONS
and
dollars
in
therefore
that
trust
in chemicals. Says rubber
but sulphur is a long range
and production of organic chemicals has been
the
Outside
t
careful
A
report
nation's biggest supply problems in
boltlenecked by short supply
is
and
estimated
cents.
carrying out defense program lie
supply problem "is being licked,"
proposition,
be
not
McGraw-Hill Publishing Co., Inc.
J
industry in
rendering a
the
service to its members which can¬
Executive Vice-President
Col. Chevalier points out
fields
the
become
has
for
spokesman
many
WILLARD CHEVALIER*
By COL.
.
association
Our
National City Bank of New York,
died
on
June
14
at
Polyclinic
14, 1901,
Hospital. He lived in New York
the corporation was chartered by
and Culpeper, Va.
Mr. Pratt was
the State of Connecticut and in
born
in
Washington, D. C., ,in
Halsey, Stuart & Co, Inc. on 1915 The National City Bank of 1885. He received his education
June 20 offered $2,700,000 North New York acquired the corpora¬
at
Trinity,
College,
Hartford,
P^nn Gas Co. 5% debentures due tion as a major step in the de¬ Conn, and took his law degree at
1 71 at 103.20% aqd accrued;in- velopment
of
a
world - wide the
University of Pennsylvania.
i<terest. Award of
bonds Was branch system. National City had Mr. Pratt began his career wit&:
made to the banker# on Jun<f18 a year earlier, in November. 1914,
the law firm of Winthrop & Stimon a bid bf 100.20%.'
established
its
first
foreign
son
and later became Assistant'
Halsey, Stuart Offers
its
50th
the
marked
On
founding.
June
North Penn Gas Debs.
Manufacturing Chemists in Strong
Position for Mobilization
; .*
■'"
r
'
Directors of
Manufacturing Chemists' Association, Inc.
present emergency, chemical needs of Defense Program
met better than at inception of World War ll.
say,
in
can
be
Proceeds
from
the
sale
the outstanding balance
Reporting to its membership at
of
the
debentures will be used to pay
World
greater than at the end of
000
of $2,700,-
of
the
Manufacturing
"Events during the past 12
Association, Inc., months have demonstrated that in
stressed the strong position that a mobilization economy the asso¬
the industry now holds to meet ciation cannot limit its activities
360-d'ay bank loans, .ob¬
Oct. 27, 1950 from four
banks
under < a: / loan agreement.
Money obtained under the loan
agreement was applied to the re¬
demption and retirement of the
the nation's mobilization needs.
entire
the
end
fiscal
79th
its
of
year,
War II.
tained
of
Directors
Chemists'
"The
the
present
chemical industry in
position
stronger
finds
emergency
to
much
the
a
meet
matters
to
purely
of
technical
der
the company,
maximum service to the chem¬
ical
inci¬
limited
The Korean
industry.
country's
dent, with its demands of
the
and
the
defense needs than at
inception of. World War II,"
report
states.
"Production
allied
and
essential
for
capacity
chemicals
has
products
been
greatly expanded, first, as a re¬
sult of governmental requirements
during the
of
because
Federal
The
needs.
In¬
Reserve
Chemical
Industrial
of
Pro¬
averaged
(1935-39 = 100)
duction
445
unprecedented con¬
to meet postwar
demand
sumer
dex
period, and later
war
for the calendar year
1950, as
with 414 for the year
high point of World
compared
The
1949.
War
activity
II
during
occurred
the
postwar
expan¬
sions, coupled with the new facili¬
ties erected during the war years,
are currently failing to meet de¬
fense
and
civilian
needs
as
our
fiscal year closes.
contemplated
during
1951
billion
in
more
than
,New expansion
for'our industry
will approximate $2
exceeding capital
made
in
1950
by
cost,
expenditures
50%.
will amount to
a
If
realized, this
10%
from
increase in
the
of
have
will
be
70%
achieved
been
Au¬
industry,
channeled
The
association.
without
of
through
the
the
same
of
with
applies to
Revel
personnel of industry advisory
committees operating under these
two
agencies.
Assistance
was
rendered
also
-
to
other
to
the
broad
in
Pennsyl¬
the
the Commonwealth
Spring Street, members
Angeles Stock Ex¬
Los
Mr. Sprang
First
was
California
Miller
&
Co.
formerly
Company,
and
Butler-
City
19
foreign countries.
opened
the
on
newest
York's
&
Trust Com¬
14,
June
TAMPA,
Fla.
Reinhardt is
technical
recently completed 100 Park
Building at 41st Street.
cupies the site of the historic bar
in
the" old
Murray Hill Hotel.
The new office has been estab¬
lished
to
serve
the
increased
banking needs of the 42nd Street
area and Murray Hill section, N.
Jackson,
Chemical's
Board
The
facilities
complete
and
Chairman
of
of Directors,
office provides
Lehigh \
served in
the
and after
he became a partner
the firm of Cobe, Johnston &
in
Investment
Pratt,
which
to
Counsellors,
resigned in
affiliated with
Loan
and
Trust
firm
he
become
Farmers'
The
as
Assistant
to
the
the merger of
that company with The National
City Bank of New York in 1929.
Mr.
Pratt
was
elected a VicePresident of City Bank Farmers
Trust Company in charge of the
Corporate
Trust
Department,
which office he held until his re¬
tirement on Sept. 30, 1950.
From
President.
Upon
1939 Mr. Pratt was
1935 to
Chair¬
representatives of the
New York banks to negotiate with
the German Government the set-,
man
of the
business
tlement
100 Park
19th office
German
for
The
individuals.
banking
tablish
—
now
Crawford
L.
associated with
During
Broadway.
years,
"hard
to sound
money"
policies
throughout recurrent reverses in
the national economy earned for
reputation of "Old
prominent in¬
have
been
named to the Advisory Board of
Chemical's new office at 100 Park
Avenue,
18
the
Several
executives
announced on
by Mr. Jackson, Chair¬
it
was
June
most limitless
& McKinnon.
visory board members are:
.
Goodbody & Co.
on
100
adherence
strict
and
facilities
the first
association, its utility assumes al¬
proportions for the
in
He
his discharge
New Company
office
banking
for
Co.
World War I as a major
from
Avenue
dustrial
(Special to The Financial Chronicle)
of the
Counsel
i's
!(s
Bank
Chemical
pany
Bullion."
govern¬
programs
.
RR.
1925
*!'
•
He was formerly
with the local office of Thomson
informative
now
maintains 54 overseas branches in
Chemical
With Goodbody & Co.
organizations.
added
trans¬
Huff & Co.
"When these additional services
are
the
change.
the
mental
in
Pennsylvania, and the Counties
Chemung and Steuben in New
626 South
the
cooperation
wholehearted
1950.
potential
Prompt
the Chemical Division
Production
oper¬
served, by
General
of
payments due
on
the
outstanding
Avenue Office is the
in the United States exclusive of
of
of Chemical Bank & Trust Com¬ the
York.
Young and Dawes loans.
He
pany
in the Greater New York was a member of Delta Kappa
area.
Chemical Bank, now in its
Epislon and Phi Delta Phi fra¬
Robert F. Sprang With
138th year, has enjoyed spectacu¬ ternities.
s;:
*
lar growth over the last quarter
Wagenseller & Durst
century. Its resources today ex¬
Announcement of a quarterly
(Special to The Financial Chronicle)
ceed
$1.7
billion.
Founded in dividend for the three months
LOS ANGELES, Calif.—Robert
1824 as a chemical manufacturing
ending June 30, by DeCoursey
F. Sprang has become affiliated
company, it was the first to es¬
Fales, President of The Bank for
with Wagenseller & Durst, Inc.,
personnel.
National
under
established
National
Act.
announces.
of
record
a
gas
Territory
Forest in
Argen¬
provision of the Federal Re¬
serve
Baxter
and
thority and the Rubber, Chemicals
and Drugs Division of the Office
of Price Stabilization
could not
and
capacity compared with
At the end of 1951, our pro¬
placed
all
our
the
Tioga, Clarion, Venango, Bradford
members for assistance;
—
bank
National
company
and
subsidiary covers
the counties of Potter, McKean,
spent on matters directly
on
an
engaged
production,
natural
of
vania.
cerning governmental regulations
and directives;
and consultation
with defense agencies on countless
problems
purchase,
sale
information and clarification con¬
physical
duction
our
utility
public
mission, storage, distribution and
indirectly related to the mobili¬
effort.
Innumerable calls
staffing of
rising as new facilities
into production.
Even so,
tremendous
was
the
Aires,
Buenos
at
The new branch of the bank oc¬
North Penn Gas Co. is
ating
zation
index
still
come
or
burden
reached 523, an all-time high, and
is
potentially total war, com¬
altered the association's
routine along with that of the in¬
dustry.
Although our technical,
legislative and information activi¬
ties continued without abatement,
well over half the time of the
value
June, 1945, with an index
of 412.
The March, 1951,
series due 1957.
pletely
staff
on
outstanding funded debt of
consisting of $2,992,000 principal amount of first mort¬
gage and lien gold bonds, 5%%
nature and at the same time ren¬
branch
off tina, the first foreign branch of a
Valley
man
of the
Board.
The
new
ad¬
Chair¬
dollar bonds
of New York,
dividend period of
the bank which has been on a
semi-annual basis since 1944. The
Savings in the City
shortens
grace
the
period at the beginning
of
quarterly period is being ex¬
tended from five to 10 business
the
days.
turn
The
to
a
change follows a re¬
dividend rate last
2%
The present dividend is the
consecutive
dividend since
1819 when the bank opened for
year.
308
business as New
York's first sav-
Cnntinued
on vaae
31
««ii«43j<«m«»^«MB»f.'w«itTt^«. -Bint im»m»w»mi
MmmnvMnmttmnmnm r
Volume 173
Number 5022
..
>■»
•
ww*<
The Commercial and Financial Chronicle
.
17
(2565)
continue
Outlook for
All
ROGER W.
Russia
skilled
greater
World War III
By
throughout
whatever
Though
Russia
demand,
do
may
on
six
next
and
more,
remain
may
for
there
months
should
Mr.
fore,
no
will
above
another
next
comes
Truman
under
comments,
can
na¬
year.
the
to
go
the
slogan "I kept
out of war," he may have a
you
price changes until
Spring of 1952. Looks for lag in
general business this
in
at" higher
even
that
forget
fair chance of
important
1
the
to
election
voters
or
be
not
If
dead
a
be
a
critical period.
But, personally, I go further and
"anything
say
happen during
can
the years aheact, from a devastat¬
tional
World War III this winter,
Mr. Babson contends business and
center
will
that this coming winter will be
very
ing War III to World Peace
start
investing
workers
do.
to
Presidential Election Next Year
BABSON
asserting
winter
wages.
Added
•
the
decides
the
re-election. There¬
entire
Administration
try to delay World War III
and
plan
our
business and
family's
education,
investments that
we
will be able to get on "some way
whatever happens." This is a goal
important to
very
for
this
young
month
people
schools and
pray
of
are
and work
June
as
our
graduating from
colleges.
until after 1952, which may result
in
summer.
Do
During the past few days I have
pushing
not
sell
it
indefinitely
Mr.
Truman
away.
"short"
yet—especially if the fighting in
SAN FRANCISCO, Calif. — Jas.
some important people
regarding the possibility of Korea stops. This does not change Roosevelt is now with Protected
World War III—and when it
may
or
the
importance of the
prediction Investors of America, Russ Bldg.
of
Edwin
of
Thorne
the
Mr.
Thorne,
formerly
Vice-President,
ciated
with
has
First
the
Bank since 1936.
of
Consumers
Assistant
been
First
He is
asso¬
National
director
a
Power
Company
Vigilant Insurance Company.
During World War II he served
and
four
years
Navy
rank
in
the
where
of
he
United
attained
Lieutenant
Corn-
mander.
ferty,
was
also made of
the election of William E. Gerdes
of
Sidney
Clarence
Maurice
and
M. Raf-
W.' Davidson, Jr.
F.
Michalis, as
Assistant Cashiers.
Mr.
Gerdes, who had been
Assistant Cashier in charge of the
Loan Department since
1944, has
been
employed
by the First Na¬
tional Bank since 1919.
Mr. Raf-
ferty, in charge of operations of
the bank's Stock & Bond
ment
the
since
bank
1946,
srr.ce
three years'
has
and
son
with
the
Mr.
bank
since
with
except
service in
Michalis
Depart¬
been
1923
during World War II.
served
Announcement
Vice-President
election
and
the
for
Army
Mr. David¬
have
1946.
been
Both
in the United States
Navy
from 1943 tcrl946 where each
held
.a
be
may not
Assistant
the
National Bank of the
City of New
York has been announced
by
Alexander
C.
Nagle, President.
the
(Special to The Financial Chronicle)
election
Vice-President
States
talked with
here
The
as
for
Joins Protected Inv.
as
Elects Thorne, Gerdes
a
'Golden Age'." This means that
the most important program is to
so
N. Y, First National
commission
as
Lieutenant.
expected.
My financial
friends
SERVING
INDUSTRY,
insist
AGRICULTURE
AND
PUBLIC
HEALTH
have noth¬
wei
ing
fear
to
during
this
summer
early fall.
or"-
Thett
chief assets of
Russia
her
'and'
satellite
nations of Ru-;
mania, Czech1
o s
k i a,
o v a
Poland,
etc.,'
~
their
are
"'
Roger W. Babson T
•;
j.:l 01
Crops,
espe-
1 \'
cially their i
wheat.
Hence', Russia will* not
start,'World War III~ until" these
,
..
crops
are
gathered transported,
distributed and safely stored.
•
r"
-
*
-
-
My military friends go further
and explain that Russia will not
start World
War 'III
until
the
,
-rivers
over
be
•
.
of
so
cut
eas'ern
Europe-' freeze
supply lines cannot
bv our airplanes
bombing
-
her
bridges. You.
will remember that
the ' Chinese' inyasion of Korea
,
,
■did riot
occur until the Yalu
River ]:
froze: .over; but That now the in¬
vasion has pretty much
,
stopped.
Broken supply lines
are
apparent-'
'
ly
picking the Chinese.
Coming
V; '
•
Wipl^Critical
;
The above mearfe.
fear
to
from
Russia -bp? J
"ipre winter
comes.
This coming
however, will be a Jvery.h
critical / time,
especiallysatyr We -J
winter,
Russians
living,
winter
that
more
weather.
The
possibiy
now
further
Stateis
the
All
this
ol
as
and
as
other
we
to
me
our
produce
and
guns
fast
can
raise
can
we
cannot
leads
the
more
a
Russians
can
airplanes,"tanks,
supplies
realize
and
Russia
than
Allies, but Russia
war
said
start World
arming at
than
meet.
men
in
forces
winter.
United
are
S.
also
is
bomb operations can
effective
in
winter
Russians
rapid rate
more
U.
It
Russia may
the
Allies
fighting
the
are
War III this
that
and
Europeans.
atomic
be),
accustomed to
more
than
the
or
are
moving
can..
to
and
come
await
further "
All
over
can
political developments.
America, clear,
and
Commodities
Business and investing
may re¬
on
a
dead center for the
next six months or more.
There
main
should
be
changes
until
If Russia
should
has
strike
As
to
to
process¬
ing by water supply officials everywhere. And
and rubber—these
is
not be
But,
next
if
in¬
Russia
winter,
taxes
be raised again.
business
during
during the
"tcoling up" period when indus¬
try is switching from peace to
This
may
be
Long
ing
as
major
a
weapons.
powerful oxidizing agent for bleach¬
well
as
for sanitizing, chlorine is in
growing demand for these
uses.
uses
of chlorine promise to
major supplier of chlo¬
products for sanitation
use,
Mathieson
expanding its activities in other chlorine-
consuming fields to meet the growing needs
of
industry, agriculture and public health.
Today, how¬
ever,
the chief application for chlorine is
raw
material
in
cleaning; degreasers and
For many years a
in their constant effort to combat water borne
are
!>-
show continued heavy expansion.
ucts
War III
5
styrene and polyvinyl chlorides for plastics
not started
general
work.
and
rine
the remainder of this
year, I look
for a lag this summer
war
casually given and accepted
'*
refrigerants; synthetic glycerine; chlorinated
contamination, chlorine and its related prod¬
further.
sure
so
is the result of careful planning
drocarbons for dry
important
price
the spring of 1952.
Certainly, taxes Would
are
drinking water
no
by that time, there may then be a
letdown in business and
prices.
creased
pure
usually be had for the asking. But that
glass of water
Stocks, Bonds
Lit
glass of water, please"
believe
thai, if the Russians do not strike
early in 1952, they have decided
to forget World War III ior some'
years
"A
the manufacture of
as a
other
chemicals. Insecticides and weed-killers;
Mathieson
CHEMICALS
pharmaceuticals; antifreeze; chlorinated hy¬
accom¬
panied *by
some
unemployment.
By fall, however, business should
again be good. This uplift should
MATHIESON
CHEMICAL
CORPORATION,
MATHIESON
BUILDING, BALTIMORE 3, MD.
!:
Financial Chronicle
The Commercial and
"18
1
.
Thursday, June 21, 1951
.
Urges Hearings en Bill to Revive Gold Standard
Co. Staff
Joins Quinn
Chronicle)
(Special to The Financial
,
.
(2566)
Canadian Securities
Sos-
BOSTON, Mass.—Alan B.
staff of
tek has been added to the
•Quinn & Co.; 50 Congress Street.
Economists' National Committee
Executive Vice-President of
supply
rency
By WILLIAM J. McKAY
as
could
\ A drop to 7.2% in ratio of our gold
supply and demand should
to money and deposits from the
the persistent unseasonal weak¬ be allowed to exercise its natural
present 10.6%,- which stands in
As matters now stand
ness
of the Canadian dollar the influence.
sharp contrast to the 24.6% of 1941,
basic economic conditions can un¬
more probable it appears that the
possipiy re-"
dergo important changes but the
cause is a result of deliberate pol¬
suiting in fur¬
parities of
exchange, ther devaluaicy. If such is the case the under¬ arbitrary
which were mostly fixed during a
lying motive can be readily de¬
t i o n
o f
the
duced.
In the past few months period of economic chaos, are only dollar,
was
forth
despite vociferous discouragement permitted to be varied when an set
by
from highest levels both here and economic trend has developed to Dr. Walter E.
The
CANADIAN BONDS
Government
Provincial
Municipal
bewildering becomes
more
law of
the hardy rumor of an extent that a parity in question, Spahr, Exec¬
is obviously false. It is then moved
utive
Vicesterling revaluation will not die.
This is perhaps not altogether re¬ to another arbitrarily fixed level President of
where it is again subject to vary¬
markable- as ,the principal argu¬
the Econo¬
economic pressures. Conse¬ mists' Nation¬
ments
advanced
against
any ing
quently under present conditions al Committee
change in the status of the pound
the
pound and other European on Monetary
are not entirely convincing. There
currencies are constantly at the
is, moreover, reason to believe
Policy, in letof
externalspeculation ters to ' all
that the protests are largely based mercy
and psychology plays a greater
on selfish motives and not on the
members
of
in
Corporation
CANADIAN STOCKS
able
...
movements than strictly
of
terms
of
.
incorporated
It is true that
ish Commonwealth.
Two Wall Street
5.N.Y.
largely
Fifty Congress Street
Mass.
INVEST IN
CANADA
Information
has
turn
permitted Britain to
her claim to direct eco¬
aid
nomic
the
in
,
this
For
alone
reason
request
( Montreal
members
] The
Exchange
icies
Toronto Stock Exchange
[ Montreal Curb Market
266 Notre Dame St., W.,
such
to
"Past
Dr.
a
degree that it becomes an embar¬
rassingly important factor in the
economy.
Furthermore
freed from the straitjacket of a
parity the level of the ex¬
change can if necessary be made
to conform to current economic
Montreal
has
the
been
rehabilitation
of
sterling ahd other precariously
situated currencies. ;; Just at the
point when
Remarkable
a
lation to last year
tated
by
level
higher
of
success ^dollar.
61
King Street W.
erable emotion.
61 times
immediate
estab¬
"The
ratio fall to
our
been taken from the
suffer
decline in
a
his
is
could easily and in
short time suffer a drop in ratio
expanding,
a
from
should
be
obvious
that
letter
economy and
policies lend
themselves favourably to invest¬
ment. Our
long experience with
Canadian industry will be of
benefit to you in selecting suit¬
sound
able
thriving
financial
investments
in
this
we
fort to
out
The
of the rumors that
be
permitted
Members:
The Toronto Stock
*■
j,,
830
rapidly during which Congress
from
j
Windsor
Brampton
the
the use
Neverthe¬
on
put them.
tools
CANADIAN
INDUSTRIAL
.
Research Means Growth and
,
Improvement
still
And
far
the
that
having
beyond the range of
mediate
vision.
As
announcement
that
The Canadian
ex¬
oil
section, B. A. Oil was in de¬
on ^reports
of a * proposed
mand
2-for-l
split in the common stock.
within
base-metals moved
The
narrow
range
any
a
nation's
extend
our
im¬
as
the
long
.can
be
there
can
be
and I
can,
only growth and im¬
Industrial research
I
beyond
know.
ments
will, produce
anything we
sure
am
benefits far
now
active
are
mature economy,
no
provement.
and failed'to estab¬
definite trend.
laboratories
there
Many major develop¬
now are within sight.
even
all
that
concede
of
this
has
,
the
defection
exchange.
important
the
violated
it
WESTERN OILS
MINING
of the
Established 1922
Kippen & Company, Inc.
Members Investment Dealers Ass'n of Canada
Montreal, P. Q.
second
of
the
J. Frank Honold
would
be still
V.-P. of Chase Bank
Fund
" V,
"
raises
seriously
more
whether
the
its
rigid
attitude
un¬
ques¬
International
on
now
Vice-
appointed
a
Vice-President
Chase National Bank.
...
A graduate of Syracuse Uni¬
versity (1925) and the Graduate
of
Banking
at
Rutgers
tion of gold might also be given School
reconsideration. At the time when (1944), Mr. Honold has specialized
of
nance
fixed
time
At :the
parities.
the unrealistic
International Monetary Fund
was
established
fixed
the
.
valua¬
maintenance
.
in trust investments
for 22 years
various
of stability to a generally disor¬
ganized situation. Since then great
progress has been achieved and it
would
appear
conditions
in
the
now
that
the
call for
international
changed
a
change
scheme
for
foreign exchange procedures.
With
normal
Chase
ber of the official staff since 1938.
price for gold and the
He was appointed
parities of exchange was
President in 1945.
necessary to restore some measure
a
at the
and has been a mem¬
the
return
conditions
a
Second Vice-
ities, in
spiritual development.
our
Obviously it has not, and deplor¬
able though that lack may be, cer¬
-
E.
PHILADELPHIA,
Land
will
afid
Pa.—Charles
William
J.
Corbet
partners on July 2
Ristine & Co., 123 South
become
in F. P.
Broad Street,
to
relatively
York
the
economic
Stock
and
members of the New
Philadelphia-Baltimore
Exchanges.
rection
be
illogical
advance in
an
one
to
di¬
by noting that it has not
accompanied
by
similar
been
material'
dependent on
research insti¬
There are, however, two
output of
our
equally essential links in the chain1
connecting cause and effect.
>First
have
must
we
flow of basic
steady
a
knowledge continu¬
ously expanding our reservoir of
of scientific information.
we
must
For that
rely primarily upon the
that at¬
is in
universities since it
mosphere that the search for basic
truth
and
new
knowledge can
most
%
effectively flourish.
the
is
It
;
industrial
of
task
re¬
search, on the otheir hand, to im¬
plement, to work out, to apply the
bright new principles coming out
of basic research and convert them
the
and
goods
services that
ultimately to man's material
betterment. This is essentially* a
cooperative relationship—the two
tasks
supplement each other. Both
must
be
with
full
with
done
pendence each has
We
skill,
equal
appreciation of the de¬
have
on
the other.
in the
been fortunate
past in having available to us the
in another.
progress
results
of
basic
science
all
over
that there is
the world, and I think it is fair
believing that
to say that the contributions' to
spiritual progress follows on the
heels of material comfort. Man is fundamental knowledge made in
Actually
-
much
so
think
I
reason
for
constituted that he thinks first
universities abroad have until now
primary need for food shel¬ been greater than our own. This
has permitted us to indulge our
and clothing: If his efforts
of his
ter,
meet with success,
he is far more
industrial
of his social
out
responsibilities to his fellow man;
the
likely then to think
F. P. Ristine Admits
our
is chiefly
progress
the
:->)
•
said ' that
have
into
deprecate
been
I
lead
sion
of the trust department,, has
our
afford
can
give sympathetic thought to the1
had been, made in the human¬
tainly- it'would
modify by the board of directors, of the
mainte¬
the
J. Frank Honold, a Second
filled
we
needs of others.
corresponding prog¬
President in the investments divi¬
..
the pertinent
Monetary Fund should
ress
most
organization
of this
of
Inquiries invited
F.
■
the
SECURITIES
M-.
In the event of
member
prestige
I.
the
amply
so
material wants
own
v
horizons
to report that
same
fit.
of
tion
Direct Private Wire to Toronto
are
primarily to 'do with our material
well-being. It would be agreeable
that
fact
This
Telephone Lancaster 5101
con¬
a
adopted despite the lish
dermined.
610 St. James St., W.,
the
'
■
3
page
ties
•;
i-
Brantford
Sudbury
in
according to
initiated Canadian
was
on-
country from further
Importance of Research in
Growth of Chemical Industry
market
in view
sterling would
rise
firm
not
the dollar of the peo¬
save
ple of this
principle of established fixed pari¬
•,
Exchange
Bay St. Toronto, Canada
Hamilton
to
recently
periment
The Investment Dealers' Association
of Canada
stock
regular
prob¬ the $10 per ton newsprint increase
will be allowed to stand.
In the
are
market
dollar pattern.
Go!
■
free
trolled
the
&
the'Interna-
of
Fund
Monetary
raised at this time
ably
,.
oss
objections
tional
Correspondence invited
jMLilner, R,
tendency
it
devaluation?"
In an ir¬
the
with
"Is
that
hastening toward the point of
danger and that time is running
are
Continued
and
hearings be held
promptly on the Reed Bill, H. R.
3038, which provides for redeCmability of our currency, in an ef¬
.
fast
growing neighbour.
Monetary Fund op¬
firmer
of the Canadian dollar.
pathy
the goids
poses a step that would tend to provided the main attraction and
correct the alarming deterioration
registered notable advances which
in the United Kingdom's terms of were
largely erased by a subse¬
trade.
'
quent reaction. Paper stocks were
IN CANADA!
Canada's
the other hand the
on
International
Senate
follows:
as
important
we
10.6 to 7.2%.
"It
of the
Banking
and
Currency
Committees, Dr. Spahr concluded
gold stock
our
while note and. deposit currency
tutions.
ducers, and
are
House
we
there, ready to
During
the week there was
our
hand, and I have, no doubt
negligible activity in both the ex¬
that the time will come when we
verse.
On the one hand the U. S. ternal and internal sections of the
ceiling' prices on wool, rubber,' bond market but the /internals will have the spiritual grace to
employ them to the greatest bene¬
and tin have been lowered to the were marked
up slightly in sym¬
ROOM FOR GROWTH—
country
and must look to,
protection against
upon,
members
To
peopler
Should
States.
be gomgfinto re¬
appear to
of this
savers
dependent
to
icies
;
The former loss—
greater—is only vaguely
and, consequently, is
generally discussed in terms of
useless platitudes.
ratios,"
with
understood
understood
gold standard.
experience
is
an'd is still discussed with consid¬
Spahr
Walter E.
\.
loss
,
less
has been achieved the former pol¬
Queen St.
Ottawa;
Toronto '•
61
"
latter
"The
detriment of Commonwealth pro¬
38
is
1921-1933.
the
to which we
:
This
lost by depositors
in suspended banks for the years
rather than a
the
Canadian greater leisure, depend
1'
1941-1950,
$116,565,times
the
years
$1,901,000,000
of the United
has been facili¬
lower
a
wel¬
cies, time deposits in banks, hnd"
E, F, and G bonds—the losses in
purchasing power on the average
524,000.
that, should
have
of the
one
items
the
7.2%, the possibility of success-, Congress for
fully resuming redemption of our. this great loss which is weakening
money and deposits in gold will our people and economy."
,
national
fixed
three
affecting
of
58%
fare of savers—life insurance poli¬
Spahr wrote, "seems to indi¬
cate
number
Taking
vitally
alone,
a
of
index
prices, has fallen
inclusive, amounted to
for
need
lishment
requirements. For example the
operation of the Anglo-Canadian
main objectives of U. S. and In¬
agreement
to
increase
British
ternational Monetary Fund pol¬ trade with Canada
by 50% in re¬
Morgan
Stock
speculation
vital
appreciation
Hitherto
its value.
in
&
the
.
in the direction of an
Robertson
of ECA
shape
strength of sterling should be al¬
lowed to exert a natural influence
Securities
on
constantly handi¬
this
hand
funds.
all
on
are
many
renounce
Available
Europe
capped by currency levels which
are inconsistent with
actual eco¬
external
in
Canadian
of
countries but on
nomic conditions, their customers
development
and currency speculators abroad
has been largely instrumental in
can freely profit from the malad¬
promoting a healthier balance in
justments.
international exchanges. The abil¬
There is little doubt that Can¬
ity of sterling and other European
ada's action in introducing a flex¬
currencies to stand on their own
ible rate of exchange was moti¬
feet has moreover solved to large
vated
by
these
considerations.
degree the Western world's previ¬
Canadian experience has shown
ously greatest economic problem
that a fixed exchange level invites
—the U. S. dollar shortage.
This
of
other
the
Boston 0,
require¬
defense
the
in
ments
NY 1-1045
WORTH 4-2400
British export items figure
many
of
the
1939.
since
purchasing
dollar, measured' in
our
wholesale
Congress, as
evidence
redeem¬
a
and avoid another
holdings for the
Dr.
exchange
determining
in
part
,
economic
In the first place any rise in the
factors. Thus although in the pres¬
value of sterling would enhance
ent
circumstances
the
British
the cost of imporrs from the Brit¬
Commonwealth and the countries
A. E. Ames & Co.
New York
.
people
our
"As of April 24, the
power
...
4
give
currency
devaluation of the dollar.
Europe,
logic of the case.
on
face of increased cur¬
evidence of need for gold standard revival.
Monetary Policy points to loss of gold in
genius, possibly with¬
contributing our fair share to
storehouse
world's
of
basic
v
spirit knowledge.
It has become painfully obvious
of generosity" has. its roots in the
rich and realistic soil of our rela¬ tjiat we can no longer rely upon
tive national prosperity.
Individ¬ basic research from foreign uni¬
I
am
ually
sure
and
generous
that
is
that
our
national
collectively
we
are
a
people, but I submit that
due
not
so
inherent moral fiber
much
as
to
our
to the fact
versities,
so.
nor
sential that
as
do
we
wish to do
In that measure it becomes es¬
we
make this country
self-sufficient
in
pure
science
Volume 173
Number 5022
..
.
The Commercial and Financial Chronicle
(2567)
it has become in industrial
as
re¬
SEC Raises Estimate of
search.
It is unfortunate that the finan¬
cial necessities of
versities
them
and
more
of sponsored
is
applied research. This
consider it to be
trend,
of
one
industrial
of
sense
I
reverse
science,
with
the
rapid
and
urgency
and
industry's
it.
responsibilities to help
For
driven
into the field
more
ac-
complisnment that it must have if
it is
its job
do
to
well, cannot in
the nature of things do more than
a small
part of the necessary basic
exploration.
The risks of industrial research
indeed
are
great.
It
takes
cour¬
patience, and much money
to attempt it on any sub¬
age,
even
stantial scale.
With all
the
many
skills at our disposal, with all the
fine equipment you have seen to¬
day, with
1951 Capital Outlay
uni¬
our
have
to
unfortunate
an
of
some
appear
American
business
esti¬
now
its
expenditures for
plant and equipment for the
mates
new
sec¬
achieved,
the'
of
1951,
ond quarter of
survey,
viously
that
likely
estimate
.of
spending
;
.
period. Railroads anticipate
a record $440 million in
same
1951 will
reported in the latest
as
expect to spend $1.0 billion in the
$23.9
the
second
quarter and $410 mil¬
lion in the third quarter.
Plant construction in the second
and
third
quarters of 1951, with
are
6% more than pre-" the increased
emphasis on facili¬
anticipated, while actual ties expansion, is
expected
to
made public
ties
and
of
third
quarter,
latest
survey
this
in
rate
according
of capital
the
the
outlays
to
jointly by the Securi¬
Exchange Commission
and the U. S. Department of Com¬
merce.
These figures indicate an
upward adjustment of the expen¬
and
earlier
this
outlays
$18
billion,
for
the
1950.
are
expected to total
41%
higher than
corresponding period of
or
If this rate of investment is
of
1951
are,
larger companies
their
more
periods of last year.
firms.
All industries have programmed
rates
in the third
facturing
crease
or
record
quarter. Manu¬
companies
their
near
plan
to
expenditures to
in¬
$3.3
billion in the third quarter of this
year
and electric and gas utilities
The
than
corporate,
reporting
partment
of
programs
quarter of this year, included ac¬
tual plant and
equipment expen¬
ditures for the first quarter of
1951 and
The
figures
mates
for
tries ased
With
rela¬
presented
on
Edgerton, Wykoff
LOS
analysis is based
estimates of plant and
on
equipment
R.
ANGELES, Cal. —Milton
Aronson has become affiliated
with
Edgerton, Wykoff & Co., 618
expenditures by industry groups.
South
The
the Los
data
ports
furnished
registered
and
derived
were
from
with
a
from
re¬
by
corporations
the
Commission
large sample of
un¬
Spring Street, members of
Angeles Stock Exchange.
Mr. Aronson
was
previously with
Noble, Tulk & Co. and Morgan &
Co.
experienced management, a given
project has about one
research
chance
in
twenty of becoming
a
An abundant
success.
flow of basic scientific knowledge
is essential if the odds in the game
we
play
for
to
us
to
are
be good enough
the winning side.
stay on
COMMERCIAL SOLVENTS CORPORATION
Freedom of Research—A Formula
For
So if
tual
Success
fulfill
to
are
we
our
mu¬
obligation to improve the
terial
status
of
mankind,
ma¬
enthusiasm.
That is the
only
formula for success.
sure
way
both
partners must accept their re¬
spective responsibilities with vigor
and
points the
in 4 directions
There is, however, one over¬
riding requirement that is per¬
haps self-evident. It is essential
that our political environment be
congenial to the operation of our
mutual
undertaking—in
that
continue in
we
word,
a
free society.
a
Freedom of thought, of action, of
expression is essential to research
wherever it be done—in universi¬
ties
in
or
industry.
Freedom
to
the harvest of one's accomplisnments is equally essential if
reap
AG RI CULTURAL
C H EMI C A L S
basic knowledge is to be converted
into goods and services for the
benefit of mankind.
We
have
effects
of
observed
the
stifling
on
science
restrictions
elsewhere in the world.
Germany, under Hitler's dicta¬
torship, saw* its science degener¬
ate,
its
ablest
practitioners
tered
to
other
to
in
concentration
rot
In
Russia,
countries
science
scat¬
left
or
camps.
under
com¬
munism must conform first to the
party line, and
tious
scientist
woe
who
ItlP^
to the incau¬
thinks
it
SPECIALTIES
ap¬
propriate simply to tell the truth.
In
mains
England, pure science re¬
free, but excessive taxation
has removed most of the incentive
industrial
for
implementation.
coutitry,
Here, in this
research
has
American
prospered
by pre¬
serving freedom of initiative for
the
individual,. and by offering
suitable incentives
to
commercial
^rfwWoo65t^/>>>X>>>.v^>v>yvyr.vy>x-:«>yy.-:
yfr////&>WSrfS')f/>'&^/?///WW///S.'
>AW¥ftWS/&#/fr/fS!tW
accomplishment.
sities
and
whatever field
the
we
we
results
wherever
dustry,
univer¬
our
have freedom of
we
expression,
port
In
they
our
may
thought
work
choose and
of
may
our
lead.
companies
in
re¬
PHARMACEUTICALS
studies,
In in¬
free to
are
and to harvest the fruits of
grow
their successes just as they
obligated to take their losses.
are
"
Science
be
must
and
and
free
industry
together
question the old
to
embrace the
new—to
ate the wasteful and to
INDUSTRIAL
CHEMICALS
elimin¬
crown
the
efficient.
Let
be so,
of
us
hope that it will always
that in an atmosphere
and
freedom
we
will
march
tinually toward those bright
us.
Miller & Co. Formed
JERSEY CITY, N.
E.
Co.
Miller
with
Place,
to
has
engage
at
in
Miller
and
15
Exchange
a
securities
business.
major divisions reflect the great
range
and versatility of its operations. Over 200 diversified
i
products
are
manufactured by synthetic and biological
COMMERCIAL.
J.—Raymond
formed
offices
four
new
horizons that will be always be¬
fore
CSC's
con¬
esti¬
indus¬
the sample data.
entific attainments, with able and
commercial
quarters.
are
nonagricultural
(Special to The Financial Chronicle)
•
above
anticipated expenditures
for the second and third
the smaller
were
to the De-"
Commerce.
These
expanding
were
investment
tively
capital outlays at
year.
For the first nine months of this
year,
quarters
respectively, about 48% and 36%
higher than in the corresponding
ditures for this period from those
planned
third
registered manufacturing compan¬
ies,
unincorporated as well as
data, collected during the second
outlays of $5.2 billion in the first amount to a somewhat
higher pro¬
quarter
fell below expectations' portion of total
capital expendi¬
by the same percentage. The ex¬ tures than in recent
quarters. The
penditures planned for the second survey
also
indicated
that
the
continuation
of the highest sci¬
men
appears
Expenditures for new plant and
equipment for the second quarter
ord
this year at a rec¬
$6.4 billion, and anticipates a
it
previous
billion for the full year
be exceeded.
19
processes at
SOLVENTS
CSC plants
'
across
'
the country.
CORPORATION
General Offices: 17 East 42nd Street, New York 17, N. Y.
The Commercial and Financial Chronicle
SO
..
Thursday, June 21, 1951
.
(2568)
REIERSON*
By ROY L.
Vice-President, Bankers Trust Company,
Bank
finds
ers.
New York
the year,
problems of growing complexity for the commercial bank¬
Holds, though there is impressive evidence of continued
large demands for business
credit, the inventory and price
It.
loans to new
check the growth
estate credit
by selective controls. These were
followed by general measures of
steps
part of a year,
expecta¬
tion of rapid
rearmament,
above
of
favor
und hesitation.
in prices has
upsurge
halt and has given way
stability with scattered
price declines. For the-banking
community, this lull in the onslaught of inflation offers a welcome
opportunity to take stock
x)f what has happened and to reappraise the important tasks and
probleims that lie ahead.
bonds
1950, our comsystem entered
of the most eventful periods
one
in
its
demand for
previous
The
history.
bank credit exceeded all
The monetary authorities took far-reaching steps
to restrain the expansion of private credit. In growing measure,
proportions.
banks came to face the prob-
the
of
lem
the
meeting
justifiable
credit needs of the defense
econ-
while preventing credit
The
favorable conditions before Korea,
was indeed a notable accomplish¬
•
remarkable
further
ment
the
was
achieve-
development of
a
voluntary credit restraint program
by the financial community itself,
While the monetary authorities
were attempting to curb credit by
controls,
the
members
of
the
financial community undertook to
check the expansion of bank credit
and of other private credit through
voluntary action. This, it may be
noted, is the first time that such
diverse institutions
almost
immediately
start of the
with
Bank loans
war.
quite naturally tend to fluctuate
with changes in prices, business
inventories, and production. In
mid-1950, war and rearmament
touched off a scramble for goods
by consumers, business, and the
government itself; soon all the
that create
lorces
a
ahead,
Looking
however,
the
developments in the economy signal problems
of growing perplexcommercial banker,
Business is likely to require a
high volume of loans for some
ity
for
the
ahead.
time
Furthermore,
as
re¬
is the
danger that the Federal Government may once again rely to a
armament
expands,
there
need for bank
significant extent upon financing
through the banking system. Consome in
sequently, as we move farther into
Consumers, mindful of World the defense economy, a policy of
"War II, rapidly embarked on a vigorous credit restraint may connationwide buying spree. Business flict with the foreseeable increase
-accelerated
its
buying to meet in the necessary and legitimate
credit
growing
stronger,
spectacular fashion.
were
these demands and to stock up for
the future; also, plant and equip-
chases
suit
with
was
a
especially
duction
peaks.
costs
broad
and
„
.
_
loans
prices, which was
strong in the world
•
t
„
for
raw
materials.
bank
moved
to new
postwar
Wages and other business
another
loans in
the
i
^
was
round
reflected
unprecedented increase in
1950 by»$8
In
Pro-
^
the
second
billion,
face
,.
^
or
of
,
,
of
billion.
♦An address
by Dr. Reierson before the
inven¬
ernment securities, but in addition
will make it
difficult for the:
more
monetary authorities to
pursue
a
restrictive credit policy which in-,
of volves,
condition
favorable
On
cash
a
basis, this fiscal year
probably will end with a surplus
close
to
levels
$6i/2 billion.
credit
controls
which
cover loans on securities, consum-
loans,, and some types of real
estate mortgage lending. For in
the case of business loans, there
er
can
be
no
workable
formula
of
requirements,
repay-
.
dence of continued large demands
rise
as
in
corollary,
a
interest
further,
a
rates
and
con¬
tinued uncertainty in the govern¬
*"
ahead.
When
1951
the
-
annals
financial
of
written, perhaps the out¬
standing development will prove1
are
very
slightly
below
This change in policy
par.
achieved
fully shown up in the rate of gov¬
ernment spending. This advantage
is of course temporary and will
without
under¬
ernment
a
by rising inventories for
defense
balance it
that the period of rapid
appears
purpose,
lation
on
behind
The
inventories
business
of
is
:
us.
level, too,
may not show any sizable increase
for the remainder of the year.
in
inventories
and
the
good
lines
generally
many
crops
of
prospects
will help to curb fur¬
increases.
If the
develop¬
ther
in
ments
if
and
able
troubles
favor¬
continue
Korea
international
no
develop
elsewhere,
we
be
alive by
dissipated unless
persistent further
inflation.
•
price
general
eventually
kept
accumu¬
outlook
budget
fiscal
forthcoming
year
ments have reduced this estimate
to about
obligations and without
on
a
flood
of panic
liquidation.
Since the unpegging of govern¬
bringing
ment
$13 billion, and there are
who believe that even this
figure is too high. If a tax bill
many
all
long-term interest
significantly in
bonds,
have
rates
for the
1952 is
considerably less favorable but is
probably not beyond repair. The
budget deficit was originally esti¬
mated at $161/s billion last Janu¬
ary.
More recent official state¬
The
mining public confidence in gov¬
risen
the
of
areas
Fundamentally,
market/
bond
reflects
this
the
continuing large demand for capi¬
tal as a result of the high levels
residential
of
building
spending
on
and
apd
the
other
private
of
rates
peak
plant and equipment
by American business. In addition,
taking
lenders,
some
assurance
from the pegged government
bond
had
market of the postwar years,
essentially
might witness some reductions in
invested,
stockpiling purchases and
short-term funds in long-term se¬
increase
the
in
defense program,
would
this
and
yielding as much as $6 or $7 bil¬
slower lion is enacted reasonably prompt¬
a
facilitate
further
price corrections. But even if the
international
remains
horizon
dark, prices are likely to be held
in check more effectively than last
bidding
year.
Competitive
scarce
commodities will probably
curtailed
be
controls
over
for
allocations
by
the
use
and
of materials.
Price controls will have
some
re¬
straining effect and presumably
will be expanded if conditions re¬
quire. All in all, although the in¬
flationary potential in
our
econ¬
is formidable, the uprush of
prices that characterized the last
of
is
1950
In summary,
not
to
tially
smaller
balance
increase
this
of
there
thermore,
have
a
goes
on.
note
that
the
budget
balance.
needed
be
Even
over
large
indications
may
in¬
as
It is interesting to
World
in
War
II
commercial,
and
took place
from the latter part of
Present
agricultural
loans
'early part of 1942, and
conditions
from
a
war
sizable financ¬
income
once more
ized
before
their
making
pour
receipts
tax
in, the Treas¬
Although
sure
pur¬
'■
are
downward
the
bond
upon
sist for
some
pres¬
prices may per-!
months ahead, forces
operating which
relieve; this
mortgage
economy
increase
the next six months,
the Treasury faces
will
become stabil¬
for the market to
.
ing requirements. Until early 1952,
when
to liquidate gov¬
Finally, some po¬
tential buyers of these bonds have
probably held off and are waiting
chases.
is to be avoided.
ury
off
the
unexchanged
are
far differ¬
economy,
and
a
portions
around
$5 billion or more of new
money
during the second half of
are
likely to
time.
over
pressure
These
prospects
in
that
involve
suggest
financing
increase
an
will
bank
commercial
holdings of government securities
over
the next several months. It
anticipated
that in meeting its requirements
has
for
been
the
commonly
predictable
future,
the
Treasury would rely largely upon
short-term issues. This belief was
,\i .k-jtwr
spending on plant and,
equipment will probably continue
at peak levels for another year
or
MM
(w'aUWu
&
but residential building
more,
shows
signs
move
Conse¬
requirements
credit later this
below
ernment
be
the
recent months.
and
faltering.
of
for
the
reasonably
may
take
the year.
Treasury
big
then be close to
the fiscal year
further tax rises
if a large deficit
however,
1952,
will
may
Beyond
pressure
of
such issues. The prospective deficit
and the debt operations mean that
the Treasury will have to raise
industrial
ent
the
some
ernment bonds.
than in the
are
during
inflationary force. On a cash basis,
available funds. This has resulted
in
quently,
are
loan requirements
time
the budget deficit
an unmanageable
becoming
funds will have to be raised to pay
over
be
generally moderating
fluence upon
spending, it may be pos¬
sible to prevent
from
the
a
rate
defense
the
defense
were
curities, and now find themselves
in the position of having com¬
mitments in excess of their readily
substan¬
likely to
at
year
if international develop¬
cause a speed-up in
and
ments do not
will be operating at a deficit.
Furthermore, each month during
the balance of this year, signifi¬
cant amounts of Treasury obliga¬
tions are due for refunding, and
business loans
likely
ly
what
Business
that thereafter the total declined.
only
bonds could not be allowed to fall
decline here will pre¬
and while
sumably be offset to some extent
Continued to rise rapidly through
declined
and
was
for business credit. Business loans
have
income and
in corre¬
personal
profits
spondingly
1940 to the
(lUarter of this year> and
of
business
that
Banker^AsslciaUonrOgdenf Utah, Vune the first
%2, 1951.
Federal debt
the
Treasury budget-In contrast
with the
deficit of $2.7 billion
selective
ment Periods or borrower's equity.
So fa^' thare is,™pressjve evi~
.
tions of the
Treasury are not only
likely to entail an increase in
commercial bank holdings of gov¬
the
comparable months of 1950. Fur¬
collateral
hgner spending, higher borrowing
outside 1 the
the other
on
great
the
from
.
pectedly
ties
success¬
banking system,
hand, does not appear
feasible under present conditions.
declined by, about $2
This reflects 'the unex¬
actually
outstanding bank loans. Furtherthey are not amenable to the
of
wave
,
some
of
half
18%
this
.
account
for
60%
more,
experienced
the
re-
flotation of long-term securi¬
large, tax
receipts,
whereas the higher costs have not
omy
demands for bank credit,
pronounced
of. increases. All this
in
The
in
upsurge
markets
great vigor.
banking system. The
ful
for bank loans.
Furthermore,
purchases by
the
since the outbreak of the war has
repeated in 1951.
pur-
arose
extent upon
some
goods are probably near
their peak for some time ahead,
half
its
that
demand
of civilian
In appraising the loan outlook,
the demand for business credit is
particularly important. Commercial, industrial and agricultural
resumed
relying
Furthermore, the forthcoming
financing and refunding opera¬
credit
Consequently, inventories,
terials.
B«smess Demands for Bank Credit
now
the year without
primarily to noncorporations.
This has
offset some of the expansion of
buying has ceased,
scare
ment
languish;
of
ance
other investors,
at record heights, and
The
programs were stepped up.
government, which had permitted its' stockpiling activities to
how the
see
placed during the bal¬
to
fiancial
production will probably come
the result of shortages of ma¬
in
as
Large
commercial
as
banks,
huge increase in bank loans
began
the
ex-
be
bank
financing. Indeed, since July 1,
1950, the commercial banking sys¬
tem, including the Federal Re¬
serve
Banks, on balance shifted
about $3 billion of its holdings to
1951.
Business
1950.
of
are
that
now
policy.
investment bankers, life
pansion from compounding our insurance companies, mutual savinflationary ills. All these devel- ings banks and savings and loan
opments have a common origin in associations have cooperated in a
the
inflationary forces released voluntary effort to limit financing
by the outbreak of war in Korea,
activity.
omy
gather difficult to
sues can
a
^
banking
and the Banks
more
Developments
In the middle of
mercial
is
forecast in the Budget Message of ment securities market. The re¬
the
inventory and. the President in January, the cur¬ quirements of the Treasury are
price outlook suggests that the rent fiscal year, ending June 30, likely to have a very real bear¬
loan increase will be considerably
1951, is likely to show a budget ing upon credit policy and interest
less
than in
the corresponding
surplus of some $3 billion or more. rate developments in the period
abandoned
flexible
their
cover
growing income tax liabilities, it
Part of this unexpectedly good
result, for the first time in they appear more than adequate,
than a decade, we see gov- especially at the retail level. In fiscal record is due to the failure to have been the success of the
contrast to the frantic buying in
ernment bonds selling below par.
of defense expenditures to rise as Federal Reserve System in achiev¬
the second half of last year, many
That the monetary authorities, in businessmen are
trying to liqui¬ rapidly as anticipated. This is not ing greater flexibility in the use
a period of rearmament and durof its powers of credit restraint/
date excessive stocks, and this has surprising in the early stages of
ing a military campaign, were
It attained this end by destroying
a rearmament effort. Furthermore,
led to some cutbacks in orders
able to undertake what had not
the inflation already experienced the fetish that had shackled it for
and output. Some further cutbacks
been feasible under much more
was
quickly reflected in peak a decade, namely that government
As
ment.
Recent Banking
more
a
or
However,
pegged levels period
in tories
at
was
increase
will
stantially in osder to
the Korean war, the
far in
So
loans
business
in
the second half of
in
significant
par
corporations
While nonfinan-
short-term marketable issues sub¬
Treasury has not relied upon
at about double the
rise
the
holdings of savings notes
Treasury Financing
of current defense
further
a
action,
ernment
Roy L. Reierson
.signs of pause
to general-
re¬
and im¬
however,
was
taken in March of this year, when
the established policy of support¬
ing the prices of long-term gov¬
most
The
the
has
showing
a
reserve
limit.
statutory
pressive
however,
to
the
at
to
sharp
the
that for most banks
economy
come
increased
quirements of member banks, so
they are now
im-
More recently,
The
year,
Board
economy.
"been
the Federal Reserve
of the
parted(, a
frightening
our
Around the turn
credit restraint.
growing short¬
ages and per¬
sistent
price
momentum
to
were
of consumer and real
the
increases
expansion of credit. The first
the
better
For the
and higher prices, it was
the
during
mature
required volume of short-term is¬
spending.
These large orders will be trans¬
lated into production fairly soon,
with a
resultant rise in credit
needs
for
defense work.
New
legislation has opened the door
for more active commercial bank
participation in the V-loan pro¬
gram, and such loans may increase
significantly in 1951, perhaps by
as much as $1 billion. The increase
might be larger if the V-loan
program is broadened to include
plant
programs
in
substantial
amount. Thus, the outlook is for
entirely
frreak of war in Korea, we are appropriate for the monetary auonjoying the luxury of a respite thorilies to place some restraints
tfn the hectic pace
of inflation, on purchasing power by curtailing
since the out-
For the first time
the
and
bonds
their
for business credit.
defense orders have
rate
an¬
cer¬
to
cial
high levels. In recent
been running
bright.
anti-inflation program are not
offered
called
of
recent
short-term
be
which
notes
impact of government
controls, should have a definitely
restraining effect on the demand
forces, the growth of defense pro¬
duction is likely to carry business
months new
holders
growing
seasonal
these
to
addition
In
that credit expansion will be considerably
less than in 1950. Denies bank credit expansion is substantial
factor in inflation, and opposes further extension or innovations
in credit control. Concludes prospects of developing sound
will
next few weeks.
production will be offset
part by cutbacks in production
civilian goods/This, plus the
of
activity.
outlook suggests
tificates
the
by
that
nouncement
in
agricultural
crops and to finance the normal
autumn
upturn in business
market
to
needed
substantiated
defense
of
increased credit will be
whole; in the second half
a
as
developments, and
reviews recent banking
economist
expectation is for a
seasonal downturn. This strong
demand seems to herald a sub¬
stantial increase for the year 1951
normal
the
Needed
No Further Credit Controls
repetition of this pattern may not
develop in the near future. Never¬
theless, the rise in the physical
volume of production from now on
will be fairly modest; increases in
quarter, when
far in the second
so
expected
record
levels
Furthermore,
controls
allocations
hold
year
with
of
over
to
of
gov¬
building
materials
mounting
will
effect,
and the efforts to curb unessential
borrowing
duce
the
will
nancing. At the
another
also
volume
wave
of
same
individual
likely to
increase.
have
to
re¬
capital
fi¬
tim§7 unless
scare
tervenes,
tutions will
tend
of
buying in¬
savings
Savings
are
insti¬
larger amounts
Continued
on
page
34
tflrttiMfcuifi^n-n ? & z.hL 1 i'.Jni?- "i^'.kili'iiTTItla*^x*>■ >44'ri'.'■ fc
H. ta ;»»•
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2569)
independence in
President of Aubrey G. Lanston
& Co., Inc.
Treasury financing lead¬
ences, the Federal could not per¬
mit
a
complete failure of the
up to the Treasury-Federal Reserve accord early in March.
Says, because Treasury security jnarket has been dominated
by policies that have altered public investment attitude toward
Treasury issues, investors will continue to assert a preference
for liquidity by acquiring short-term bills. Stresses
Treasury
Treasury refunding, and as a con¬
sequence of large Federal Reserve
sion.
It
debt must be held in its
by
entirety
somebody.
If
it
is
of
desir¬
get
from
necessity for Federal support pur¬
System;
rates
large
away
debt had been erected
a
against
the
background
mentioned.
business
it then follows
Such
I
have
purchases
was
be
held
other than the Federal to acquire
the debt that somebody else no
general public
net
a
seller
of Trea sury
securities
o n
balance,
t h e
only
that
way
these
ties
be
can
Reserve
securi¬
kept out of the Federal
is
by
debt
retirement,
Treasury cash sur¬
that
is, by a
plus that can be devoted
to
purpose.
-
.
When
I
refer
to
the
this
general
all
classes
other
of
what
These
term
we
include
insurance
retire Treasury securities held by
commercial
banks,
but
at
the
same
time the Federal Reserve
had
to
buy
amount
of
Toward
eral
the
sent
and
the
sav¬
encouraged
to
it
would
for
so.
made
To that
increasing
seemed
of
supporting
at
rates
interest
it
paid
on its coming
could almost feel
one
mental
Federal
churning
officials
in
ideas
new
dilemma.
A
in¬
end, the Treasury
use of
market¬
Treasury bopds that were
against' purchase -by
restricted
commercial
the
•»
and
of
general,
the
nounced
that
buy
securities
and
publicly
Treasury
Federal
the
in
about
their
to
minimum
prices
which
war
their
i
Technique
January,
launched
nique.
Launched
1950,
forth
v. it
bonds
on
began
the
a
and
at
able
to
prices
spring
versal
that
constitu¬
fur¬
be
been
at
appeared,
lowered
that
that
effective
it
to
necessary
a sharp in¬
of such mag¬
one
the
trend' of
that
that
was
point
the
yet made up
from
part
interest
might
on
Federal
had
its mind to de¬
234%
long-term
In fact, reports emanating
Washington were to the ef¬
rate.
from
fect that
.
a
violation of the 214%
no
contemplated.
was
Instead of adopting such a pol¬
icy, the Federal endeavored to in¬
slowly the yields on out¬
standing
short-term
securities.
Many investors took heed of the
crease
change
and
in
in
Federal's
the
sold
bonds
bills
of
see
between 98 and 99. As
you know
this did not prove to be the
they would
234% market
repeti¬
some
of what had occurred
in
then-existing
fraction
a
prices,
namely,
case.
the
The
short-term
market,
and
selling
began to pyramid. Keep in mind
that shortly after Korea investors
to
decline
the
carried
96-97
arrested
prices
level
until
and
in
a
down
•
not
was
Federal
reinstated
was
support
took
Since
support #ur-
credit
obliga¬
chases, the Federal's handling of
Treasury debt
the
market
has
changed some¬
The what, but many of the
day-to-day
Treasury's cash surplus was sub¬ rallies and most of the declines
stantially eaten up by the neces¬ have been generated
by increases
long-term
exchange
that the Federal
refunding.
of prices rather
short-term
which
able;
Treasury
and
quarter
of
1951
billion.
In
other
surplus
that
close
was
to
the
words
$1
It
cash
the
developed
in
the
dissipated, first, in
was
The December, 1950, Refunding
uses
such
the
Federal
retiring debt held by
or
by commercial
as
.
banks.
•
December, 1950, refunding.
Federal's
for
program
The
that
re¬
funding
was
adopted
by
the
Treasury, namely, a single issue
of five-year l%s. The percentage
Of attrition in this refunding was
Finally, in early March of this
the Treasury-Federal accord
announced, together with the
exchange offering into the hybrid
23/4% bond. The handling of the
market
in.
succeeding
support
in¬
shock
became
of
thing
Re¬
a
serve
purchases
bonds
throughout
of
amount
maturing obliga¬
of the Treasury
financing. Public acceptance was
so apathetic as to characterize the
refunding as a flop.
in
During
course
of
the
was
interesting to
me
to note
other
a
unless the Treasury has a cash
surplus available for debt retire¬
opinion
lending institutions
Treasury security investors
continue
The declining Treasury
What
is
policy?,.
tenance of
who
as
a
of
consequence
increased
done
so.
had
dition
liquidity
would
is
ket
or
around
desire for
a
Federal's
I
understand
it
the
to the main¬
orderly market
an
for
current
Treasury,
con¬
securities.
The definition of an orderly mar¬
sell
to
commitments
the
As
Federal is committed
One, nevertheless, would think
by the end of the exchange
anyone
a
newlypreference
for
commentary on the low morale
of Treasury security investors.
-
market didn't exist.
against forward
assert
bill rate is evidence of this and is
that
period
to
high
a
eral
De¬
cember, 1950, refunding, Treasury
accounts
started
to
buy 234%
bonds to insure that the price of
prices
change the
liquidity.
Treasury
March
were
quite large,
defense
the
an
start
in
; summer,
easy
so
have
important.
the
Few
people
have
agreed
country
far with the definition that has
Continued
Some believed that after
on
page
from
re¬
policy
money
a
late
a
higher-yield
level for
Treasury bonds. Another,
thought that seemed to take shape
at the
time
several
ther.,;'';;
fillip
disbursements
billions
provide
1
that the National
was
dividend
of
dollars
of
would
temporary inflationary
a
and
They- took the view that al¬
though
professional
investors
might buy marketable bonds on
that 'sales
of
234%
bonds by the Federal would pro¬
vide a quantitative offset
by de¬
public
creasing
assurances
minimum
of
unlimited
price support, it would
ten contract
of
as
to the resale
price
recession
market
to
and
bonds, and the yields offered by
these
to
uation.
Interestingly
took
enough
Korean
term
of
how
fore
the
the
past.
long
Many
courage
banks
drives
these
measures
to
en¬
placement outside of the
and
despite
War
Loan
wholesale per¬
sonal
solicitation, a substantial
amount of residual financing went
into
bank
portfolios, either di¬
rectly or indirectly, and the hold¬
ings of the Federal Reserve Sys¬
tem increased by $22 billion, all
paid for with high-powered dol-<
involving
short-term rate
would be
in
of
essential
The
postwar problem
order
deficit
dropped to 114%
to
facilitate
financing.
114%
or
about
idea
crease " rserve
the
Federal
balances'
went
by
boards.
Large bids were ac¬
cepted only in part and some¬
times were rejected.
\\
V:
chemistry
/
And
it
is not
forgotten at American Cyanamid where each
year sees
renewed emphasis
research
on
.
,
.
:
the continuous
"unfinished business" from which industrial progress
1
springs.
•
V-
.
:UV
...
,v
,
"
A "5
-V
'd COMPANY
AMERICAN
By August, the Federal decided
to take the bull
by the horns and
give the market, and also the
Treasury,
the
shock
treatment.
Federal
1951.
materials, the chemical
bonds, and
officials began to worry
running out of them. The
of selling in order to de¬
June
15,
abundant
This is the ultimate aim of
1%
to
address
and
won¬
Federal
by Mr. Lanston before
the New Hampshire Bankers Association
and
the
Savings
Banks Association of
New Hamnshire, Portsmouth, N. Hamp.,
♦An
common
industry is seeking to add to the well-being of mankind,.
Treasury
The
continued to sell 214%
lars.
the" earth's
it would be be¬
1
Despite
the
incident
that the fight over shorts
interest rates was now a
thing
able securites.
the
By discovering and putting to work the unused potentials in
mean
dered
on
ex¬
have
Korea brought
completely different sit¬
a
market¬
yields offered
would,
taken place or not.
about
obviously had to be related
the
reserve
We don't know whether the
nonmarketable
savings notes
bank
.
pected
securities designed"
purchase by the average in¬
dividual.
Thus a major reliance
and sales emphasis was placed on
Treasury
for
member
balances.
be necessary to enter into a writ¬
This
was
inaugurated
Reserve's
with
declaration
the
of
30 Rockefeller Plaza
is
area
acquired
of
tial
of
exact
it has freedom to
my
the
Nevertheless,-Federal
past.
casion
that
than
an
will
par
cized b,y the press as being "free."
This was rarely the case. On oc¬
than
but
supports
and
treatment;
the
less
one
difference
the general public toward invest¬
ments in Treasury securities.
In
given its second and
was
strongest
days
only because the
Federal again acquired a substan¬
earlier
prices
avail¬
primary
Throughout the past year and a
half, the Treasury security market
has been dominated by Federal
techniques and policies that have
materially altered the attitude of
year,
even though the Fed¬
frequently was an unwilling
buyer.
The market was publi¬
somewhat
The
bid
makes
ment, net selling byHhe general
public can be accomplished only
through
Federal
Reserve
pur- '
chases of an equal amount.
The Treasury-Federal Accord
market
the
on
the
ket,, instead of being available for Treasury debt must be owned in
more
timely
anti-inflationary its entirety by somebody and that,
vited large-scale selling.. The in¬
vitation was accepted.- Then the
/. Next'came the decision
in
Federal
day that in the eight
weeks ending on June 6 the Fed¬
a manner that increased the avail¬
eral bought $214 million of
bonds
ability of funds to lenders and, callable in more than five
years,
second, in an endeavor to bul¬ compared with $268 million in the
wark
a
rapidly fading investor- seven weeks ending on Feb. 21.
confidence in the long-term mar¬ This serves to remind us> that the
Treasury
obligations,
thus increasing the liquidity of
their
position and insuring the
availability of future funds as
and
the
area.
and"
Treasury
Further,
decreases
or
support of 234% bonds in the first
attitude
notes
for
sity to pay out abou't $3 y2 billion
against
cash
redemptions, ' the
larger portion being paid against
the September and October,
1950,
bond
place,
early
or
to
manner-
generally wished to divest them¬ preclude further declines.
selves" of Treasury debt in" order the
reinstatement of
was
tions
within
time
lower
about
yields,
from
culty
rate
be¬
sabilize
that when the expected
to
could
idea
bring
so
recession
financing., Life
Indeed the authorities went
The
tech¬
sell' '234%
bids
.successively"
prices.
Federal
new
to
whenever
the
would
securities
of
of
search
solve
~
New
In
an¬
offered in the market at the
ted the pattern
/
securities
Treasury
Reserve
all
encourage
these
of
marketable
Federal
were
To
banks.
purchase
de¬
to
#
able
to
re¬
be much
nonbank
vestors to acquire Treasury secur¬
ities than for commercial banks
to do
of
course"
Fed¬
prevail upon
Treasury to increase the rates
for
that
officials
unable
was
public
buy the Treasury's deficits. It also
desirable
1949,
upon by the Treasury.
In
November,- 1949,; when the Fed¬
the
clear
of
with
'
,
„
They appeared to
refundings,
more
bonds
financings
During World War II it was
perfectly obvious that the general
was
V
necessity
Treasury
eral
this
have been slowly downward or at
least stable.
Perhaps the diffi¬
not
closed the market
investors
needed.
substantial
very
end
Reserve
banks.
be
a
Treasury
Reserve dollars.
the
to
solu¬
no
tion had been evolved, but for¬
tunately the Treasury had a large
cash surplus.
This was used to
ings banks, business corporations,
individuals, and commercial
had
By 1948
in-,; cided
life
companies,
get somebody
we
longer wanted?
get restive.
,
public, I naturally have in mind
vestors.
To
question
debt
by the general
public. If the
Aubrey G. Lanston
the
way,
could
the
must
is
how
booming.
was
put it another
that
JlT
in
nitude
chases of Treasury securities after
when
Federal,
bring about overnight
to
able
to
keep- had to be made, or so it seemed
Treasury debt- at the time, regardless of general
out
of
the credit conditions, and these pur¬
Federal
Re¬ chases were likely to be heaviest
serve
the
on
To
have
crease
just
that
unprepared to fol¬
was
through.
the
so
bad
embarked
action,
low
pressures.;
ury debt seems to get overlooked
from time to time.
It is that the
too
would
how
in the
tion
were
would
February
fearful that
came
the books
During Janu¬
has to be held by
somebody.
is
having
compulsory holding of Treasury securities, and advocates a
Treasury cash surplus sufficient to cope with long-run infla¬
was
and
ary
not be permitted
further.
purchases Federal Reserve credit' to
acquire private
underwent a tremendous expan¬
tions and that the
debt must be held by someone* and under
inflationary pres¬
sure there is little likelihood of
higher bond prices. Opposes
One important fact about Treas¬
-a
market were not
unexpected. Re¬
gardless of the existing differ¬
ing
tionary
to decline
August, accom¬
Treasury refunding
announcements that
highlighted
the sharp differences of
opinion
prevailing.
The results in the
By AUBREY G. LANSTON*
Mr. Lanston reviews developments in
key issues would
panied- by
2T
l',
.'1
■»
*
*
^
S
'
vV
'' a':' ■"
u
p
pri,>
l-
New York 20,
N. Y,,
M);
43
"l
The Commercial and Financial Chronicle
22
Thursday, June 21, 1951
...
(2570)
—and
Factors in Evaluation
Mr.
Hengren lists
Bonds
HENGREN*
Generally
and Statistics
Deposit Insurance Corporation
definitely
recognized
as high
quality
is
large.
Accordingly, banks need
on]y concentrate their selections
of muncidifficulties
(1) legal status; (2) price
pal bonds for investment purposes:
investments
in this area of investment to
considerations; and (3) credit quality.
.
(
successful.
A
the
corollary relevant
bank investments today, there are
facts
two
In
ascertain credit quality.
impor¬
tance.
; In a very
offerings
recent
has
years
reached
un¬
precedented
flota¬
these
would
tions
suggest
abundant
Hengren
E.
R.
bank investment.
for
find illustra.ions
As
a consequence,
he
with
repeatedly
difficulties
taxation
The
a listing of
of
objective
(i)
(2)
analyst
pal securities now finds himself,
a few suggestions for
be fraught
way
*
At times, some of these
SOUrces.
indexes have been fairly satisfactory.
Moreover, there are some
who
become
obsessed
the notion that certain in-
analysts
wjth
dexes are
aeXeS
The
universally aDolicable
umversa"y appiicaoie.
infinite variety in the shape
Continued,
on
•
an
solicitation of an offer
only by the Prospectus,
offer to sell
nor a
to
buy these securities.
*
,.
.
Company
Due June 1, 1981
100.85% and Accrued Interest
y
;
T
*
Copies of the Prospectus may be obtained in any State only from such of the under
signed several Underwriters as may lawfully offer the securities in such State, y
.
there will be
municipal
securities
to the appropriate¬
ness of pricing. Important though
the pricing process is to the in¬
vestor, that subject would take us
far beyond the scope of this dis¬
cussion.
Rather, these remarks
pertain to the task of judging
respect
Appraising Credit Quality
Municipals
priate at the
speaking, the questions pertinent
to such an inquiry cluster around
the following three topics.
appraising
municipal
Two
generalizations
Lehman Brothers
Kuhn, Loeb li Co.
Blyth & Co., Inc.
V
June 20,1951.
'
of
This announcement appears Jor purposes
appro¬
,
4
the subject of
quality of
The first
the credit
securities.
•n"l J
the test to be applied in
concerns
of record, the financing having been arranged
privately through the undersigned.
outset of any . dis¬
devoted to
cussion
are
(1)
Legal status.
determining credit quality.
(2)
Price considerations.
test may
(3)
Credit quality/
$78,000,000
This
simple
*
respect to
any
The
volves
ever,
son
in the security, obviously it is en-
consideration
the
answer
a
what¬
.
.
if the investor has good rea¬
paid
to believe that he will be
a
the
givings,
valid and law¬
point
,
"
*
■
security
cannot
3%% Series due 1970
be
The
that the
analyst is
In
made and
Executives
by
Mr.
Bankers
Forum,
Hengren
Association,
Daytona
before
Bank
Beach,
May 21, 1951.
Fla.,
November 21, 1950 for
delivery of the remainder is to be made prior to January 1, 1952.
appraising credits there is sel¬
any
serious
difference of
opinion
among
Dillon, Read & Co. Inc.
regarding
lacking in quality. Practically ail
address
on
Delivery of $20,000,000 principal amount has been
dom
qualified experts
securities which
are
validity
of obligations.
If the definitely good. Nor do experts
diifer very often as to-the issues
qualified experts conclude that a
which are more or less completely
security under consideration meets
Florida
Corporation entered "into purchase agreements
the sale of the above Bonds.
of the differences of opinion cen¬
ter
in
So
the borderline
far
as
banks
areas.
are
concerned
June 21, 1951
*
"
Corporation
First Mortgage Pipe Line Bonds
j
the terms of the
credit quality is as¬
,
obliged to rely upon the opinions
of experts. The methods are well
established for determining the
*An
.!
to
then
deemed to have good quality.
Experience of investors in ap¬
It is not the purpose of this dis¬
the - credit quality
of
cussion to review the intricacies praising
of the law regarding municipal municipals has furnished the basis
securities.
Suffice it to observe for a second useful generalization.
the
*
Texas Eastern Transmission
Accordingly, the first Step
evaluation process is to sured. On the other hand, if there
are
reasonable grounds for mis¬
curity constitute
this
.
the question: Does this se¬
ful obligation?
at
'
•
forecast, to be sure. How¬
according
bond,
soever.
in
no
be phrased in terms of a
question: Will the issue
out according to schedule?
answer
to the question in¬
pay
municipal
security, the legal validity of tnc
obligation is a primary considera¬
tion. If there is some legal defect
to
,
•v
Quality of municipal credits.
of Analysis
of inquiry whenever a
municipal security is subject to
investment
analysis. Broadly
tiiled
page
attempt to outline methods for
with
areas
With
analysts
evaluating
be well to review briefly the ma¬
jor
that
Mortgage Bonds, 3%% Series due 1981
Price
,
-
this discussion
In
no
orientation it may
of
.
fundsj
in municipal
placement
securities.1
with
Framework
The
fact
not assure
Monetary forces. :
Taxation,
seeking
untoward
consequences tor the banking sys¬
tem appear to be greater today
than at any time within recent
memory.
The responsibility of
the
analyst searching for bank
quality investments is grave. Cer¬
tainly he will need to muster all
of his knowledge, intelligence and
skiil in order to do the job well.
By
the
have ijeen remiss jn their efforts
t0 find measures. As a matter of
fact> t^e textbooks are choked
with acc0unts and descriptions of
various statistical devices ealcujated to appraise economic re-
Dated June 1, 1951
(4) Amount of investment
this troublesome pemaking
in credit analysis wnich
The possibilities for
mistakes
from
a
measures are
This lack does not
available.
stem
(3) Volume of securities press-
guidance in
would
;-First
the principal factors
ing for sale on the market.
and to offer
riod.
not
that
applicable.
price stability:
of munici-
the
resources
generally
upon
remarks top credit quality does
my
in some detail
the seriousness of the predicament
which
economic
be
Unfortunately, such
in
the price structure
for municipal securities is sulficient to indicate the reason why
bearing
grows.
will be to point out
in
of
ures
would
Texas Electric Service
experienced
shrinkages
price.
whose tax
exemption features become increasingly attractive a9 the burof
now
covering more than
hundred years a few good meas¬
$11,500,000
Many of
1946.
substantial
very
by pressure to extend bank commitments in municipals
den
One
to find out of experi-
quotations on
have
issues
these
further aggravated
are
1945 and
in
par
problems in analysis. These
novel
a
unlimited obligation to
The offer is made
premier securities. Witness the
high-grade municipals with cou¬
pons around 1% and 30-year ma¬
turities which were offered near
complicates ihe problem
for the analyst, namely, the al¬
most endless proliferation in types
confronted
This announcement is neither
a
least,
say
of very substan¬
tial losses; in market
fact which
But there is a second
vastly
is
and
of
the
hackneyed.
MUW„1VJ>U1
to
ex¬
pay
can
high qual¬
ity issues.
It is unnecessary to
probe deeply into the history of
municipal finances in order to
issues
of offerings.
they
that
vestors
op¬
well suited
fundamental sense, all
background
is,
tremely high prices for
an
portunity tO
pick
between
of municipals and
credit quality
good
of
magnitude
price-wise
grade
de¬
ence
sug-
will always the cost involved in ascertaining
prove to be attractive. Bitter ex- the facts bearing upon these cred- ited fundamentally by the extent
perience has demonstrated to m-
The
totals.
top
language
pay.
ever,
aspects of a municipal security
subject to the evaluation process
come
to focus at the time of the
investor's decision regarding the
the volume of
in
differential
" the
This
As a practical matter, howthe issuer's obligation to pay
is. always limited by his ability
and his willingness. Accordingly,
the traditional criteria for appraising the credit quality of
municipals have been developed
for the purpose of measuring differences in the ability of obligors
to meet an unlimited obligation.
In the analysis of municipal securities there is general agreement that an appraisal of the issuer's economic background furnishes the starting point in all
instances. The ability of a minor
political subdivision to pay is lim-
municipal portfolio of banks
with respect to
those which are borderline in
character tends to shrink almost
to the vanishing point. As a consequence, any advantage in the
rate of return Which may be obattractiveness of the issue price- tained from borderline or sub-inwise. The pricing process does not vestment quality issues can only
insure that lawful obligations of be thought of as compensation for
the
first place
new
attempting to
there is no point in
of
vital
credit.
gests an
the established requirements, then this observation
regarding the
the analyst can proceed with his consensus on the credit quality of
work. On the other hand, it me municipal securities. In prospersecurity does not meet the test, oug tjmes>
the present, the
analyst of municipal se-
and especially the one
responsible for the selection of
timeworn
literature
subject of appraising
economic
the
community
^
visions have^ been secured by a
pledge of the issuer s full faith
to
also may be noted
For the
traditional
to the
States and minor political subdi- woum hope
avoid
and
second
The
voted
yuan y
y
Historically the obligations of
issues.
.
sources.
„
<
completely all troubles growing*
of commitments in borderline
lish
curities,
ingly, the credit status of an issuer
ultimately /depends upon a judgment regarding economic re-
Traditional Criteria for Testing
out
judging bank-quality bonds, and contends attempt to estabevMuation criteria of general applicability has not been
in
ferentials are small, it should be
clear that investors cannot afford
to spend much to assemble the
necessary
facts for appraising
speaking, the volume of marginal situations,
municipal
essential factors in evaluation
Points out
as
its economic resources, irrespective of the types of securities
it floats in the market. Accord-
not sufficient to cover any element of risk. When the price dif-
problem of inselection is materially
simplified by the consensus of
qualified investment experts regarding issues classified as either
the best or the poorest quality,
Deputy Chief, Division of Research
Federal
its. ..Certainly the differential is of
corollary to these gen-
a
vestment
Of Municipal
By RAYMOND E.
as
eralizations—the
.
'i
40
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2571)
EXECUTIVE
EXECUTIVE
COMMITTEE
COMMITTEE
CHAIRMAN
COMMITTEEMEN
Sixteenth Annual
Meeting
TEXAS GROUP
Lewis F. Rodgers
Central
Co.
of
Investment Bankers
R. A. Underwood
Investment
R.
Texas, Dallas
A.
Underwood
Co., Inc.,
&
Dallas
Association
VICE-CHAIRMEN
of America
DALLAS, TEXAS
MAY 24th and
Thamas Beckett, Jr.
First
Southwest
Company,
N. T.
Edward H. Austin
25th, 1951
Austin, Hart &
Parvin, San Antonio
Dallas
Masterson, Jr.
Chas.
Co.,
B.
White
&
0. T. Richardson
Houston
Underwood, Neuhaus
& Co., Houston
SECRETARYTREASURER
Wilbur H. Frederking
!
Fridley & Hess,
Houston
Chas. B. White
Chas.
Co.,
B.
White
&
Houston
EXECUTIVE
SECRETARY
"Govt.
better
R.
B.
(Brud)
Smith
Dallas
Agent"
known
rities and
as
McDonald and
"Texas"
Canavan—
Harry A. McDonald, Chairman of the Secu¬
Exchange Commission, and John L. Canavan,
Rauscher, Pierce & Co., Dallas
Edward D. Muir
Russ & Company,
San Antonio
23
A,-
24
»»«■
i
The Commercial and Financial Chronicle
(2572)
..
.
Thursday, June 21, 1951
Pictures Taken at Western Party
Rauscher, Pierce
&
Co.
Underwriters and Distributors
RAILROAD
INDUSTRIAL
PUBLIC UTILITY
BANK & INSURANCE
TEXAS
MUNICIPAL
SECURITIES
Mrs. E. Clyde Hawkins, Houston; Miss Lou Powers;
Columbian Securities Corp. of Texas, San Antonio; Mr. & Mrs.
Upshaw, R. J. Edwards, Inc., Dallas; Mrs. Rogers Ray
Rogers Ray, Rauscher, Pierce & Co., Dallas;
Morgan
K.
T.
Cox,
The
Roger
Active Trading Markets
Mercantile Bank Building
DALLAS 1, TEXAS
Dell
Telephone: Riverside 9033
BRANCH
HOUSTON, SAN ANTONIO and AUSTIN
OFFICES:
Direct
Teletype:
DL 186 and DL 197
Long Distance 841 and 847
Wires
to
New York, St. Louis and other
Principal Markets
William G.
Hudson, Stayart & Company, Inc.
Hobbs, Jr., Russ & Company, Inc., San Antonio; Mrs. Neill T. Masterson, Jr.; Mr. & Mrs.
J. Marvin Morcland, Rotan, Mosle and Morelund,
Lewis F. Rodgers, Central Investment Company of Texas, Dallas; George L. Martin,
International Bank for Reconstruction & Development, New York City; Mrs. William G. Hobbs, Jr.;
Neill T. Masterson, Jr., Chas. B. White &
Co., Houston; Mrs. J. Marvin Moreland
Judson S. James, Jr., Judson S. James & Co., Dallas;
Galveston;
Corporate Stocks and Bonds
Texas
•
Municipal Bonds
714 RESERVE
LOAN LIFE BUILDING
DALLAS
Telephones:
R. S.
Hudson, Pres.
1, TEXAS
PRospect 8241
Riverside 6176
—
Louis W. Stayart, Vice-Pres.
J. K. Hudson, Vice-Pres.
Jesse
A.
Sanders, Jr., Sanders & Newsom, Dallas, Tex.; Thomas Beckett, First Southwest Company,
H. Funk, Creston H. Funk & Co., San Antonio; Mrs. Benjamin F. Pitman, Jr., San
R. C. Mees, Paine, Webber, Jackson & Curtis, Minneapolis; Wallace H. Fulton, National
Association of Securities Dealers, Washington; Mrs. Jesse A. Sanders, Jr.; Howard A. Buhse,
National Association of Securities Dealers, Chicago; Mrs. Thomas Beckett
Dallas;
Creston
Antonio;
Dealers and Brokers in
.
.
•
CORPORATION
•
PUBLIC
•
BANK
•
INSURANCE STOCKS
•
TEXAS
.
STOCKS
UTILITY
AND
PREFERRED
BONDS
STOCKS
STOCKS
MUNICIPAL
BONDS
DALLAS UNION SECURITIES COMPANY
Founded 1920
DALLAS, TEXAS
502
FORT WORTH, TEXAS
DALLAS NATIONAL BANK BLDG.
TELEPHONE: RI-9021;
•
1002
CONTINENTAL
LD 504; TELETYPE DL 390
•
LIFE
TELEPHONE:
Formerly DALLAS UNION TRUST COMPANY
BLDG.
ED-1248
Keith B. Reed, Binford, Dunlap & Reed, Dallas and Herman A. Feldmann,
Group, Incorporated, New York City. Mrs. Hugh D. Dunlap; Mrs. Keith
Hugh D. Dunlap, Binford, Dunlap & Reed, Dallas; Mrs. Herman A.
Feldmann; David J. Hanscom, Paine, Webber, Jackson & Curtis, Minneapolis
(Standing)
Distributors
B.
Reed;
t»iv,i.
Volume 173
Number 5022
.
.
.
.i^vtUr»'i,i
The Commercial and Financial Chronicle
Held
'"''i1!tT.i!>t'\Mfi,i&cfji^j
(2573)
by Texas Group of the I. B. A.
Southwest COMPANY
FIRST
Southwestern
Corporate & Municipal
Securities
Q)
William C.
Thomas
Charles
Jackson, Jr.
Beckett, Jr.
C.
Glavin, The First Boston Corporation, New York City; Laurence M. Marks, Laurence M.
& Co., New York City; H. H. Dewar, Dewar, Robertson & Pancoast, San Antonio;
Mrs. Willard E. Walker, Dallas;
Charles C. Pierce, Rauscher, Pierce & Co., Dallas;
Taylor B. Almon, Rauscher, Pierce & Co., Dallas; Joe W. Ellis, First Southwest
Company, Dallas; Joseph H. King, Union Securities Corporation, New York City
Marks
Winton A. Jackson
James F.
Wm.
P.
Jacques
*
Smallwood
■
#
DALLAS
Mercantile
Bank
Building
TEXAS
Mr. &
Mrs. Rogers Ray, Jr., R. J. Edwards,
Inc., Dallas; Mr. & Mrs. John M. Hamilton, C. N. Burt &
Company, Dallas; Mrs. and Mr. George Rooker, Mercantile National Bank, Dallas; Mr. & Mrs. Edgar
Franklin, Dittmar & Company, Dallas; Mr. & Mrs. George E. Cooper, Henry-Seay & Co., Dallas
MUNICIPAL BONDS
W.
Central Investment Company
of texas
——
Kirby Building, Dallas 1, Texas
Bell
Teletype—DL 586
Long Distance 213
Branch Offices
Omaha
Plainview
San Antonio
St. Paul
Harris, Upham & Co., Dallas; Laurence W. Morgan, The Parker Corporation, Chicago;
Aldrich; William A. Parker, The Parker Corporation, Boston; Mrs. Richard Clark, Jr.,
George D. Aldrich, The Parker Corporation, Boston; Mis. & Mr. Joseph R. Neuhaus,
Underwood, Neuhaus & Co., Houston; Vincent Reilly, Commercial & Financial Chronicle, New York
Earl N. Cotton,
Mrs. George D.
Dallas;
SOUTHWESTERN
REVENUE
MUNICIPALS
BONDS
CORPORATES, LOCAL SECURITIES
OFFERINGS,'BIDS, APPRAISALS
'
'
V
!.
' ' '
'
R.
'.r'
-
J.
MERCANTILE
Small,
Jr.,
Brothers
St.
&
Louis,
Rowles,
Winston
&
Co., Houston;
Mr. & Mrs. Russell E. Siefert,
A. G. Edwards & Sons,
Company, Dallas
Co., Kansas City, Mo.; Richard Morey,
Mo.; Thomas Beckett, First Southwest
,
' '
,,,
'
'
1
TERMINAL
BUILDING
OKLAHOMA CITY 2, OKLA.
1, TEXAS
TELETYPE—DL 162
A.
•%•'/
'
EDWARDS, INC.
TELEPHONE—CENTRAL
Stern
'
BANK BUILDING
DALLAS
George
'
7715
7-3541 &
WESTERN UNION PHONE
TELETYPE —OC 370
25
H
nwd*
26
«.iV4
T «WWWRfiWlii
lYW t
»
MVt,M
U*W»JJW
WpfcW H,«tf
<
.eranSWU**
^fc-vrfU
rw»-f*ww.,;.i|«. ^Wtfvwi
The Commercial and Financial Chronicle
(2574)
At 16th Annual
Sandees
Thursday, June 21, 1951
Meeting
securities
:;0>.
I
.
.
Newsom
&
investment
..
REPUBLIC
BANK
BLDG.
Dallas
<?<
—
C.
NESOM
BURT
JOHN
M.
HAMILTON
Mrs.
Over
Twenty-five
Clarence
Sample, Dallas; Mrs. William N. Edwards, Ft. Worth; Mrs. & Mr. T. E. Graham,
Bank, Ft. Worth; Elmer A. Dittmar, Dittmar & Company,
Antonio; John D. Williamson, Dittmar & Company, San Antonio
The First National
Years Experience in
San
TEXAS MUNICIPAL
BONDS
Originators
—
Distributors
—
Dealers
C. N. BURT & COMPANY
Kirby Bldg., Dallas 1, Texas
RAndolph 8733
V
;
UNDERWRITERS
8734
—
.■
•.
•
DISTRIBUTORS
—
DEALERS
—
SS TEXAS
MUNICIPAL
BONDS
CORPORATE
STOCKS
UNLISTED
LOCAL
&
&
BONDS
Anna
Scott;
Edward J. Markham, Weriheim & Co., New York City; Charles C. Glavin, The First
New York City; William C. Jackson, Jr., First South West Company, Dallas;
F. Jacques, Dallas •, Mrs. Wm. P. Small wood; Mrs. William C. Jackson;
Mrs. & Mr. Anthony E. Tomasic, Thomas & Company, Pittsburgh
Boston Corporation,
SECURITIES
Mrs.
James
R. A. UNDERWOOD & CO.
Incorporated
Mercantile Bank Bldg., Dallas 1, Texas
Bell Teletype
DL 492
Riverside
Representatives
—
Amarillo
Dealers
—
—
Belton
—
9296
Edinburg
Distributors
Corporate Bonds
Stocks
J. F. Perkins &
Mr. & Mrs. Robert A. Underwood, R. A. Underwood & Co., Inc., Dallas; Mrs. Robert A. Underwood,
Jr.; Mrs. and Mr. J. Russell Dodds, R. A. Underwood & Co., Inc., Dallas; Mrs. and Mr. M. M. Hatcher,
First National Bank in Dallas; Robert A. Underwood, Jr., R. A. Underwood, & Co., Inc., Dallas
Company
1508 First National Bank
Bldg.
DALLAS, TEXAS
Tel.
STerling 4531
TWX
DL
481
Dealers in
United States Government
Obligations
Specializing in Underwriting and Distributing
Texas
Municipal Bonds
Bond
Department
Albert
E.
Bernet,
Mr.
&
Jr.,
Mrs.
Schneider, Bernet & Hickman, Dallas; Mrs. Vera Campbell;
P. Brown, Dallas Union Securities Company, Dallas
Jack
,
Volume 173
Number 5022
...
In
UJi,\
MAfejf.OijUvAliI
1 W fflh1 ijCiiii-i/MHtntiKU}
iAtfc $
The Commercial and Financial Chronicle
(2575)
Dallas, Texas
BOUGHT
SOLD
QUOTED
TEXAS MUNICIPAL BONDS
MARKET APPRAISALS
Bond
CREDIT ANALYSES
Department
FIRST NATIONAL BANK
IN
DALLAS
Telephone ST-4411
The Bank Wire
Long Distance LD 285
E.
Hunt, White, Weld & Co., New York City; Mrs. E. Kelly Brown,
Dallas;
Mrs. & Mr. George Culler; Mr. & Mrs. William R.
Newsom, Jr., Sanders & Newsom, Dallas;
Hayward H. Hunter, George K. Baum & Company, Kansas City, Mo.
Teletype DL
,'-i'*•
•
••
V1'-'
■
V
-
to
Principal Markets
Jansen
94
1
/
•
Investment Bankers
Edward H. Keller, Texas National
Corp., San Antonio; Charles E. Kimball, Distributors
Group, Incorporated, New York City; Mr. & Mrs. John Brenner,
Rauscher, Pierce & Co.,
San Antonio; William N. Edwards, William N. Edwards &
Co., Ft. Worth;
Clarence Sample, Mercantile National
Bank, Dallas
DALLAS 1, TEXAS
Telephone
—-
Prospect
8124
■
Teletype
—
DL
386
Municipal and Corporate
Henry
&
M. Beissner, Moroney, Beissner & Co., Houston; Charles Francis Smithers, F. S. Smithers
Co., New York City; W. Wallace Payne, First of Texas Corporation, San Antonio; Charles
M. Miller, Mullaney, Wells & Company,
Chicago; Raymond V. Condon, B. J. Van
Ingen & Co., Inc., Chicago; Earl G. Fridley, Fridley & Hess, Houston;
Marquette de Bary, F. S. Smithers & Co., New York City
Securities
Specializing in Texas Issues
enm
jfiriwektwierit f^cuw&eb
0le/utPlvc SSanA S&ut/dinp
Q)at/ak
John
St.
C.
Hecht, Dempsey-Tegeler <6 Co., Los Angeles; Jerome F. Tegeler, Dempsey-Tegeler & Co.,
Russell K. Sparks, Uhlmann & Latshaw, Kansas City, Mo.; Mrs. Landon A. Freear;
Worth, Texas; Robert Harmon, Eastman, Dillon
Co., Chicago; Mildred Glass;
D. Frederick Barton, Eastman, Dillon & Co., New York City; Jeanne Thurman
Louis;
Ft.
4,
^Teccab
If
27
(r\'J
28
The Commercial and
(2576)
Financial Chronicle
...
Thursday, June 21, 1Q51
May 24th and 25th, 1951
ESTABLISHED 1925
Underwriters
—
Distributors
—
Dealers
Corporation and Municipal
Securities
*.
i
Specialists in Texas Corporation
and
Municipal Securities
Dittmar & Company
616 South Texas Building,
San Antonio 6, Texas
Teletype-SA 15
Telephone—Garfield 9311
Branch
& Company, San Antonio;
Mrs. R. R. Gilbert, Jr.; Mrs.
Dittmar
Underwood,
Dittmar,
Mr. & Mrs. M. M. Hatcher, First National Bank in Dallas;
William A. Jeffers, Dittmar & Company, San Antonio
Office—Dallas
DISTRIBUTORS
DEALERS
UNDERWRITERS
George B. Wendt, The First National Bank of Chicago, Chicago; Milton R. Underwood,
Neuhaus & Co., Houston; R. R. Gilbert, Jr., First National Bank in Dallas; Elmer A.
Wilbur
CORPORATE and MUNICIPAL
of
E.
Hess, Fridley & Hess, Houston; Mr. & Mrs. R. McRee Davis, Texas Bank &
Lewis F. Lyne, Merrill Lynch, Pierce, Fenner & Beane, Dallas; John S.
New York City; Mrs. & Mr. Byron Hastings, The Parker Corporation,
Dallas;
Wertheim & Co.,
Trust Co.
Hilson,
Chicago
SECURITIES
Direct Wire to New York
Dewar, Robertson & Pancoast
Members
SAN
New York Stock Exchange
ANTONIO 5, TEXAS
TELETYPE SA 3
LONG DISTANCE 15
Branch Office
-
San Angelo, Texas
J.
David
Mr.
Everard,
&
Mrs.
John
A.
C.
Nuveen & Co., Chicago; R. B. Smith, Texas Bond Reporter, Dallas;
Black, Henry-Seay & Co., Dallas; Mr. & Mrs. William H. Seay,
Henry-Seay & Co., Dallas; Byron J. Say re, John Nuveen
TEXAS
& Co., Chicago; Mrs. R. B. Smith
SECURITIES
Underwriters—Dealers—Distributors
Municipal and Corporation Bonds
Trading Markets—Active Retail Outlets
ROE & COMPANY
MILAM BLDG., SAN ANTONIO 5
Garfield 8338
Western Union Phone
Bell Teletype—SA 70
Mr. & Mrs. Hugh Bradford, Southwestern Securities Company,
Walker, Joseph McManus & Co., New York City
Mrs. James F. Jacques, Dallas;
Dallas;
Graham
Volume 173
Number 5022
.,.
The Commercial and Financial Chronicle
(2577)
Heavily Attended by Members
TEXAS SECURITIES
ACTIVE TRADING MARKETS
San Antonio Transit Co.
Longhorn Portland Cement Co.
Houston Natural Gas, Com. & Pfd.
Tennessee Gas & Tran. Co.
East Tennessee Natural Gas
El Paso Electric
Argo Oil Corp.
Co., Common
Wyatt Metal & Boiler Works
Lone Star Brewing Co.
Sommers
Welex Jet Services, Inc.
Drug Stores, Com. & Pfd.
Central Power &
Duncan Coffee
Co., Class A
Chattanooga Gas Co.
Light Co., 4% Pfd.
Kirby Lumber Corp.
River Brand Rice
Southwestern Public Service Co., Com.
Texas Eastern Transmission
Mills, Inc.
All San Antonio and Houston Bank Stocks
J.
Wesley Hickman, Schneider, Bernet & Hickman, Dallas; Wallace H. Fulton, National Association
of Securities Dealers, Washington, D. C.; Howard A. Buhse, National Association of Securities
Dealers, Chicago; Murray Hansen, Investment Bankers Association, Washington, D. C.;
Laurence M. Marks, Laurence M. Marks & Co., New York City
Quick Firm Bids On All
Texas
Municipal Bonds
& Gompany
Russ
INCORPORATED
Members Midwest Stock Exchange
OFFICERS
Alamo National Building
C. L. WEST
W. G.
HOBBS, Jr.
SAN
E. D. MUIR
ANTONIO
5
SA 23 & 53
A. M. RUSS
Fannin 4324
Direct and Connecting
Wires to:
Dallas, Houston, Galveston, New York & Los Angeles
We
Lewis
are
actively interested in all issues of
F.
Rodgers, Central Investment Company of Texas, Dallas, Group Chairman; Harry A.
McDonald, Securities & Exchange Commission, Washington, D. C.; Jesse A. Sanders, Jr.,
Sanders & Newsom, Dallas; R. B. Smith, Executive Secretary of the Texas Group
TEXAS-KANSAS-FLORIDA
MUNICIPAL BONDS
%eRAN SON-DAVIDSON COMPANY
INCORPORATED
Specialising in TTlunicipal Sonds
BEACON
BUILDING
MILAM
WICHITA 2, KANSAS
Tele.—WI
L.
192
D.
BLDG.
TAN ANTONIO 5, TEXAS
198
McAllen, Texas
Miami, Fla.
Tele.—SA 8
L. D. 518
St. Petersburg, Fla.
A. Gordon Crockett, Shields & Company, Houston; Clark Cox, Harris Trust & Savings Bank, Chicago;
Winton A. Jackson, First Southwest Company, Dallas; William L. Read, The RansonDavidson
Company, Inc., San Antonio; Arthur E. Kirtlcy, First Boston
Corporation, Chicago; John L. Canavan, Rauscher, Pierce & Co., Dallas
Dealers in
FIRST OF TEXAS
CORPORATION
TEXAS
MUNICIPAL
OONDS
TRANSIT
SAN
TOWER
ANTONIO
5, TEXAS
Telephone:
Garfield 9254
Teletype: SA 13
Western
—
Union Phone
Representatives
Lubbock
—
Austin
—
San Angela
D. C.; Harry A. McDonald,
C.; John L. Canavan, Rauscher, Pierce & Co., Dallas
Wallace H. Fulton, National Association of Securities Dealers, Washington,
Securities & Exchange Commission, Washington, D.
29
W. Wallace
—
Dallas
Payne,
President
29
The
30
Commercial and Financial Chronicle
.. .
Thursday, June 21, 1951
(2578)
)
Championship Golf Played
Underwood, Neuhaus &
;
MEMBERS
MIDWEST STOCK
Municipal
Government, Texas
and Corporation
Co
EXCHANGE
Securities
Walker, Austin & Waggener, Dal¬
King, Union Securities Corporation,
New York City; Alfred J. Stalker, Kidder Peabody &
Co., New York City; Benjamin F. Pitman, Jr., Pitman
& Company, San Antonio
Willard E. Walker,
las;
CITY NATIONAL BANK
BLDG., HOUSTON 2, TEXAS
H.
G.
William
Hobbs,
Walter Todd, B. V.
Russ & Company, Inc., San Antonio;
Christie & Co., Houston; Morgan K. Cox,
Jr.,
Securities Corp. of Texas, San Antonio;
Paul B. Hanrahan, Hanrahan & Co., Worcester, Mass.
Columbian
The
Telephone CEntral 8841
Teletypes HO 321 and 399
UNDERWRITERS
Joseph
DEALERS
/ DISTRIBUTORS
Corporate and Municipal
Rauscher, Pierce & Co., Dallas;
Bradschamp & Company, Houston;
James L. Bayliss, Rauscher, Pierce & Co., Dallas;
A. C. Black, Henry-Seay & Co., Dallas
John H. Rauscher, Jr.,
John B. Carter, Jr.,
Almon, Rauscher, Pierce & Co., Dallas; Fritz
Rauscher, Pierce & Co., Dallas; Neill T.
White & Co., Houston;
Harry J. Wilson, Barcus, Kindred & Co., Chicago
Taylor
B.
Stewart,
Masterson, Jr., Chas. B.
Securities i
Fridley & Hess
First National Bank
Building
HOUSTON 2, TEXAS
Bell Teletype
Telephone PReston 8101
HO 42
Fridley & Hess, Houston; R. C. Mees,
Webber, Jackson & Curtis, Minneapolis; Gus
Rounsaville, Jr., Thomson & McKinnon, Dallas
Wilbur E. Hess,
Paine,
Carswell & Company, San Antonio; John S. Weatherston,
Rotan, Mosle and Moreland, Houston
Dealers^
Distributors
Underwriters
William A. Jeffers, Dittmar & Company, San Antonio; John M.
Maxwell, The Northern Trust Company, Chicago; Edward T. Volz,
Municipal
Bonds
19 5 2
•
TEXAS GROUP I. B. L MEETING
Corporate
WILL BE HELD
Securities
IN
Rowles, Winston & Co.
MEMBERS
MIDWEST STOCK
EXCHANGE
GALVESTON, TEXAS
CITY NATIONAL BANK BUILDING
HOUSTON 2, TEXAS
Telephone CApitol
9945
Teletype HO 395
IN MAY
Volume 173
Number 5022
..
.
The Commercial and Financial Chronicle
(2579)
Continued from page 16
will
be
000
to
increased
News About Banks and Bankers
Shareholders
changing
the
on
Park.
4th
north
side
Alms House
of
City
The main office is
Avenue at 22nd
*
J.
Frank
ments
and
*
of
Bank
of
the
New
the day of the annual
the bank from the
at
the
at
A
Chase
and has been
pointed
item
invest¬
%
will
9
to
He
bearing
in
the
on
of
'
-
needed
of
business
exceptional
there,"
"The
said.
Oct.
time
some
Mr.
branch
the
capital
of
Company,
of
approved
was
June
on
entitling
holders,
scribe to
them
branch.
ors
14
is
The
Its
total
to
founded
was
than
more
the
be
offices,
j
»
J.
John
ft
*.
-
-
jjr.
the
,
in
Hickey, Vice-President;
ings
According to the
Brooklyn "Eagle" he joined the
Greater New York Savings Bank
of age.
in 1905 when he
15 years old.
was
ft
ft
later he was made
Assistant Secretary.
He became
years
Vice-President
and
in
1931
1935.
The
that
the
Vice-President
Assistant
also
"Eagle"
in
stated
banker served for many years on
Relations
Public
the
Committee
Relations
Personnel
and
Com¬
mittee of the Savings Bank Asso¬
ciation
of
that he
was
State
York
New
and
Chairman of the Ex¬
ecutive Committee and Public Re¬
Committee
lations
of
the
Group
V Savings Bank
Hickey, it
President
Association. Mr.
added was a past
was
the
of
Brooklyn Bank¬
Club.
ers
Detroit, Mich.,
%
>
The
Girard Trust Corn Ex¬
new
result of the
formed
as
of
Corn
the
Bank
June
of
Co.
18.
Directors
of
of
$1,000,000 stock dividend,
a
of
stock
the
capital
to $6,000,000.
increasing
thereby
the
bank
and
of
sell
the
will
official
be
Williams,
Board,
James
as
will
the
of
offi¬
of
staff
follows:
of
Chairman of the
E. Gowen, Chair¬
Geoffrey S. Smith, President;
of the entire bank
sell
Jr.,
the
under
leadership
of
Senior Vice-Presidents: Rus¬
J.
Bauer,
George
George H. Brown,
R.
Clark,
Basil
L.
Harlow and J. Malcolm Johnston.
Mr.
Bauer
will
are
of
will
be
LINCOLN, Neb.
Leonard C.
—
Babcock is with Waddell &
Reed,
Inc., Barkley Building.
100 000
bank.
The
following
bank's
direct¬
The
stock
sub¬
$44
share,
a
share
one
the
each
for
on
six
held, and will increase
now
number
of
capital
shares
of
the
stock
firms, headed by G. H.
Company, of St. Louis,
Walker &
will
underwrite
the
ftsue.
De¬
tails regarding the issuance of the
stock
appeared in these col¬
May 31, page 2258.
umns
The
sale
m
ft
of
amount of
stock
new
to
the
$200,000 has served to
increase the capital of the Fidelity
National
Bank
of
Baton
Rouge,
La., from $600,000 to $800,000, it is
learned from the June 4 "Bulletin"
issued by the
Office of the U. S.
',
ft
'
The
>
Bank,
of
bank, which now stands at
$15,000,000, will be increased to
supervise
A special meeting of
shareholders to consider the plan
called
been
by the directors
for June 19. William A. Mayberry,
President, in commenting on the
plan, said: "The proposal does not
involve any
subscriptions or other
by
our
shareholders.
payments
When
changes
we
the
completed,
are
expect can be in about
will be
asked to surrender their existing
month,
a
shareholders
certificates
stock
of
$50
and
par
receive for each share surrendered
three
shares
of
will
change
the
meeting
second
the
January, each
ft
At
a
be
Share¬
asked
third
Tuesday
in
year.
ft
County
ft
O.
H.
ft
Clark,
First National
June 19
Bank, cf Detroit, Mich.,
approved the plan to increase the
capital stock of the bank to $6,000,009.
Under
the
proposal,
stock
will
receive
dividend
a
through the
change of three shares of $20
20%
ex¬
par
value stock for each share of $50
value outstanding.
The capi¬
tal and surplus of the bank thus
par
\ch'i#i\
the
V/lPV?U
\ Ul
a
fn£|
rate W
.w'3-avcx
W
ft
President
Bank
of
of
the
Marshall,
calling attention to the
increased
capital structure of the
now standing at $1,000,000,
total comprises
capital and surplus of $400,000
each, and
undivided
profits of
$200,000.
The
capital
was
in¬
the
from
creased
of
as
$300,000 to $400,000
by the sale of
May
$100,000 of
31,
stock.
new
**
W.
W.
#
Bank,
12, it
*
of
" V
■
Republic National
Dallas
Texas,
Marshall
June
on
announced by
was
Florence, President.
his
■,
Lynch, President and
Manger
of the
Texas
Light Co. was elected a
director of the
A
native
business
with
career
Light Co., be¬
ing employed by the company in
1923.
He
in
1936,
President
any
one
Executive
has also
active
been
is
in
former
a
civic
of
ber
the
of
write to
PHILIP MORRIS & CO., LTD..
af¬
of Man¬
■
I
|
.
' V*V°*"
East Texas Cham¬
Commerce
President
complete 1951 PHILIP MORRIS ANNUAL
director of
the National Association
ufacturers and
recoj
INC, Dept. K, 100 Park Ave., New York 17, N. Y.
in
and
words, the PHILIP MORRIS sales
REPORT
Vice-
1947, and President
and General Manager in 1949. He
fairs
product superiority tl
simple fact: The smoker does know the di
For the
elected Vice-Presi¬
was
to
acceptance—and soaring sales. More eloque
of
Texas, Lynch has spent
entire
dent
better index
Fred F.
the Texas Power &
and
former
a
Dallas
Electric
Club.
ft
ft
ft
a
The Bank of Nova Scotia (home
office
has filed
Toronto)
tration
statement
and
seeking
on
the shareholders of Manufacturers
shareholders
aW*4
V^nnndO.P^I
National
Texas, in
rities
ft
special meeting
National
\ cording W
Texas, (effect¬
ive May 15) has a capital of $200,000, increased from $150,000 by
the sale of $50,000 of new stock.
to
day of the annual
the bank from the
of
to
$20 par."
also
*>»
«&rI^ Lanno»l"'
Denton,
General
$16,000,000.
and
»>«
ite
ln
ft
ft
Denton
Power &
of the
has
a
June 1.
stock held by share¬
The capital and surplus
par
holders.
tHe
M&vcU »c
Comptroller of the Currency. The
new
capital
became
effective
exchanged for each share
to be
$50
the
David
of the Executive Committee,
be
financing
Na¬
stockholder
for
at
vestment
proposed plan, three
shares of stock of $20 par value
holders
administration
five
the
(Special to The Financial Chronicle)
special stock¬
a
the
of
the
Under
on
Exchange
election
the
The
bank
and
functioning
of the first actions
One
was
cers.
man
began
Girard Trust Corn
Bank
merger
National
Exchange
Board
the
new
E.
a
Trust Co. and the Girard
&
Trust
Philadelphia,
of
Bank-
change
ft
ft
_
of
Waddell & Reed Add
10
bank,
June 8 notified
a proposal to
on
shareholders
its
issue
which
•
*.
in
voted
■
Sixteen
made
indicates that the
ft
Manufacturers National Bank of
Y.,
N.
Mr. Hickey was
15.
June
on
59 years
Brooklyn,
of
Bank,
died
value shares will
par
May 24 issue, page 2154.
our
Sav¬
York
New
Greater
of
increased. In addition
$6,250,000 capital, the bank
have surplus, and undivided
■
of
value
profits
totaling
approximately
$7,750,000, or total capital funds
of about $14,000,000. The plans to
increase the capital were noted
'
#
be
to
outstanding
from 600,000 to 700,000.
Stock¬
holder subscription rights will ex¬
pire on June 26. A group of in¬
The
approximately $56 a share after
to
while
$616,000,000,
$25
new
will
293,000
depositors
savings accounts at its
maintain
shareholders.
lotments are
been
First
Louis,
capitalization.
of
$25
the capital is
1, 1859.
amount
than
more
four
June
today
resources
special
May 25 to ask for the in¬
bank's
to such
the directors
Book
desirable.
deem
of The Dime Savings Bank,
sary
which
paid on sales to
Payment of the al¬
stock,
having be¬
of
St.
taken at
offered
the
for sale
offered
person or persons as
with the 92nd anniver¬
coincided
be
may
almost
16,
June
has
meeting called
on
basis
states that unsubscribed shares
ers
Long:
on
stock
was
shares
subscription price for the shares
is $33. Shareholders of record on
Wallace
Taylor, of Queens Village,
house,
business and
ft
issue
to
scription
sub¬
new
the $100 par issue now held.
grown
Island is Assistant Manager.
open
its
missions will be
ceeds
value stock for each share of
par
opened
H.
11
creased
point where 48,407 depos¬
savings accounts June 14 will be entitled to pur¬
totaling
$85,580,000."
M e r v i n chase the additional stock. Sub¬
Foster, of Lynbrook, L. I. an As-, scription rights not exercised be¬
sistant
Secretary of The Dime fore July 16, become void after
Savings Bank, is Manager of the; that date. A letter to stockhold¬
Flatbush
in
war¬
to
share of the
one
ft
in
the decision
share¬
to
Mo.,
amount
ft
Johnson
now
mailed
be
Clayton,
Bank
capital
maintain
itors
.
use
not to be used for
any
purpose.
shares of additional $20 par value
new
be¬
the
to
ft
stockholders
holders
in
Trust
would
rants
growth
was
8, 1932, and has
com¬
May 28.
on
vote
Mr. Mitchell announced that
"The additional
for
no
bank for
are
effective at the close of busi¬
June
7,
ft
ft
Central
250,000
been
the
#
enlarged
tional
ap¬
June
of
The
An
merger
issue
our
increase
An
in the Flatbush branch has
of
year.
ft
efficient flow
and
ft
ap¬
space
cause
writing is involved and
added to the general funds of the
come
page 2362.
years
was
%
p.m.
for
subscription
to
in Canada. No under¬
monthly installments of $3 per
share, commencing Oct. 5. Pro¬
the
enlarged Flatbush branch of
a.m.
offered
the public
in
Bank
by the bank's shareholders. Wil¬
The Dime Savings Bank of Brook-: liam A. Mitchell, President of the
lyn, was opened on June 16, at institution reported.
The action
which time all visitors and new- concurred in the proposal of* the
customers received souvenirs,
it: directors to split present shares
was
announced
by
George
C. on a four-for-one basis by chang¬
Johnson, President of the 92-year ing the par value from $100 to
old
bank.
Although
normally $25 a share. Approval was also
closed on Saturdays, the branch given the directors' proposal for
at Avenue J
and
Coney Island stockholders to subscribe for $1,Avenue was open June 16 from 250,000 of additional capital stock.
9
Tuesday
be
The capital of the First National
Cincinnati, from $5,000,000 to $6,$
third
*
throughout the entire in¬
peared
in 1945.
An
the
January each
new
stitution with all its branches.
Vice-President, The
Second
a
of work
Honold
22
for
ficial staff since 1938.
to
ness
smooth
a
member of the of¬
a
second
tain
Chase
Rutgers (1944), Mr.
specialized in trust
ments
of
graduate
De¬
of Syracuse University (1925) and
the Graduate School of Banking
has
approved
Buildings. Mr, Johnston will su¬
pervise Operations in order to ob¬
invest¬
York.
Brown
bank.
National
Second
Trust
has been appointed a
Vice-President by the Board of
of
Mr.
the
of
also
A.
raised from $250,000 to $350,000 by
the sale of $100,000 of new
a
the
problems
of the
supervise
the Personal Trust
Department.
Mr. Clark will supervise the Com¬
mercial Department.
Mr. Harlow
will
supervise
Personnel
and
partment,
Directors
tax
bank.
the
in
division
on
ft
Honold,
Vice-President
Department,
including
the Comptroller's Department and
covering the general accounting
Hall
now
Street.
%
Banking
$15,000,-
Charles
is Chairman
meeting
ings bank in the Old
from
$16,000,000.
Kanter
31
with
Exchange
a
regis¬
the
Secu¬
Commission
registration
of
300,000
shares of its capital stock ("shares
of $10
to
each"). The bank proposes
offer
its
shareholders
ant to allotment the
scribe
at
$30
per
additional
shares,
one
share
new
held
shares
of
riTlstte
pursu¬
right to sub¬
share
for
at the
for
each
record
the
rate of
Philip
four
at
Wo
the
—
close of business June 30.
holders
must
next.
Share¬
iared
accepting such allotments
do
so
on
or
before
Unsubscribed shares
Oct.
5,
are
to
-**re
E.
rJTere
T">°rted
hv
MskAM
l
public
ly than
proves
|
I
vi
32
The Commercial and Financial Chronicle
(2580)
...
Thursday, June 21, 1951
.
Continued
More
Sterling Revaluation
on
Our
By PAUL EINZIG
on
advice of the
action, and in view of rearmament
to
full sterling convertibility cannot
return
governments by the Eco¬
Council of Europe and by
the
In 1950 and 1951 they
fluctations.
Interna-
nomic
a
sterling might have been averted
at
the cost of some temporary
Eng. —The conflict
between the advice given to Euro¬
LONDON,
pean
conditions,
be expected.
no
will take
discourage
in
have been
would
position to
a
of foreign
which has been largely re¬
influx
the
national Mon¬
funds
etary Fund has
the
unwarranted
optimism created by the large in¬
aroused
sponsible
con¬
It
terest in Lon¬
j
for
wonder
no
prefer
too
revaluation.
technical
for
part
has
ion
be¬
Dr.
Paul
could only move
ling
of
initiative
should
above
$3,
duce it
but
The
majority of British
inspired as they are
large
economists,
by liberal principles, are distinctly
in favor of removing or relaxing
exchange control, both in the sense
making more sterling converti¬
ble and of allowing, more or less,
to find its own level. Everybody,
of
everybody, realizes that
there could be,at present no ques¬
tion of a complete removal of ex¬
almost
or
control
change'
either
in
sense.
Even the most ardent advocates of
that for the
convertibility admit
present it would have to be con¬
fined to current trade transactions,
restrictions
that
and
transfers
other hard
area
have to remain in force.
and
would
areas
currency
the advocates of
capital
on
dollar
the
to
Most of
fluctuating ster¬
a
ling admit that there could be for
question of set¬
ting the sterling rate entirely free,
leaving it to the mercy of specu¬
lative currents. What they want is
the time
being
no
"unpeg" the rate and rely on
the Exchange Equalization Fund
to
for keeping its fluctuations
in reasonable limits.
This latter solution has
with¬
particu¬
in( the light
of the experience of the last two
years.
It is pointed out that so
long as sterling remains rigidly
pegged Britain remains helpless in
face of speculative outflow or in¬
larly strong support
flow of
foreign funds.
The mone¬
tary authorities have to face such
movements without being able to
defend
If
themselves
sterling
the
tuate
against them.
allowed to fluc¬
Exchange Equalization
were
Fund would be able to resume its
tactics which it
much
success
operated with
so
during the troubled
days of the '30s.
So long
as
ster¬
ling is rigidly pegged speculators
feel that there is
to
risk attached
no
going short in sterling when its
prospects are viewed with pessi¬
mism, or to going long in sterling
when a revaluation is anticipated.
the other hand, the mone¬
tary authorities are at liberty to
allow sterling to move up or down,
If,
on
then
they
are
superior
flict
in
with
manoeuvre
resources.
severe
a
the
position
aid
of
to
the
deciding to re¬
to $2.80.
once more
the question
on
tion.
of
divid¬
revalua¬
a
The
majority takes the view
that if the undertone is strong it
would be wiser to benefit by it
through relaxing the restrictions
rather than through raising the
value of the
pound. The assump¬
tion is that a revaluation, or even
a substantial appreciation in case
of
return
to
elasticity
would
materially weaken the chances of
a relaxation of exchange restric¬
a
tions.
This
reason
why Mr. Snyder, and Amer¬
believed
is
to
the
be
ican
opinion in general is opposedk
revaluation, the policy of the
United States remaining strongly
to
in favor of
There is
ment will
the
British
yield to
Govern¬
pressure
suggested
deterioration
to believe at
reason
no
that the
present
of
removing restrictions.
in
directions.
the
of
any
The
British
bal¬
of payments since the
ance
begin¬
ning of 1951 is viewed with grow¬
ing concern. It is felt that even
six
if
months
ago
decontrol of
or
worth
the
risking,
situation
a
revaluation
sterling had been
in
the
has
meantime
changed.
The
prospects are very doubtful, and
the time-honored principle, "If in
The
of the ECE
unsolicited
safely be ignored.
As for the IMF, it will not meet
until
September,
and
meanwhile
the situation created by the prog¬
of rearmament is expected to
ress
make
it
could
not
quite plain that Britain
afford
of
sequences
a
to risk
return
the
to
a
ress
towards
a
the
end
of
anything,
more
chances are, if
in favor of reval¬
uation than of liberalization. Even
that appears to be unlikely at the
time of writing, though, admitted¬
ly,
its
prospects
are
liable
to
change.
on
those
devaluation of
Making
bullish
side of the equation, nor are there any misgivings about further
down-trends being possible, particularly in certain issues in the
longer end of the list, which might be subjected to pressure be¬
cause
of impending developments or changes.
Nevertheless, it
seems to be the opinion of those that are well-informed
on the
money markets that a bottom area or base is being formed.
It is
This does not,
however, mean an immediate return to the
take place overnight,
well realized that such an operation does not
markets have had too much thrown at them
in the last few months to have a complete reversal of form come
because the
money
about all of
Just the
sudden.
a
same,
the belief is becoming more
prevalent that a fluctuating range is being carved out
time, will prove to have been the starting area for
developments in the government market.
It
seems
substantial decline in
borrowings, the up-trend seems to be meeting greater resistance.
Monetization of the debt by non-bank investors is not as pressing
a force when three-point losses have to be taken as it was when
bond prices were pegged by Federal. Demand for certain durable
and semi-durable goods have also been well satisfied in many in¬
stances, and with this the inflation fear psychology of the Ameri¬
can public has probably been dissipated in more ways than one.
Credit controls are also beginning to have some effect upon the
whole monetary situation. All of these taken together could have
a marked influence upon the money markets and the government
securities markets. This is without giving any consideration to
Central Banking policy which is a factor that could have a decided
effect upon the future course of the money markets;
Likewise,
there is another factor which some money market-followers be¬
lieve is in the piocess of becoming a more potent force in the,
picture, and that is the return to or increased savings by the
people of the country as a whole.
,
relieved
and although there may not be a
CITY,
N.
Y.
—
Harry Young is engaging in
curities
business
from
a
offices
W.
se¬
at
106 Seventh Street.
2y2s of
1967/1972
be bank-eligible in the not distant future.
development is not exactly bullish at this time
deposit bank obligation.
l%s of April 1, 1952 had a
term
issues
as
a
whole
The favorable
had at their disposal
refunding.
of
the
and
bank
Charles H. Cairns, partner in De
& Doremus, New York
City, passed away at his home at
Coppet
the age of 60.
where
ciates
was
Robert
took
the
On
.
obligatiofisnn
funds they
fey the successful
the 2V2s
According
to reports, the
in the 1956/1958s and the 1956/1959s wajxdone largely by
obligation^ at higher prices.
errand while there
quite a substantial amount of
according to advices, were for new money.
though this buying has abated
that will be
somewhat
pro¬
&
Asso¬
&
Asso¬
Heller
connection
company
from
on
the re¬
tfeese acquisitions,
However, it seems as
because
July
on
31.
stamm
Otto
elected President and
was
T.
;
24, 1949, F. R. Kohn-
Hess, Vice-President and
Under
the
new
man¬
major operation was
performed.
The
company,
was*
trimmed to operating size.
Over-;
head
was
reduced
by approxi¬
a
mately $75,000
month
per
and
a
policy of recasting the company's
with
structure
entire
to.
respect
organization (plant and machin-,
ery),
inventory,
product
lines
and programs was adopted.
It
required courage of the first or¬
der.
Facts and figures that fol-.
low have been taken from annual
The net loss for the first
reports.
subsequent
year,
1949, was $2,-.
701,793, but results since have
justified
it.
Organization
was
simplified and strengthened, sys¬
tems and methods and procedures
perfected
were
and
that
plans
had been adopted were proven to
have
been
realistic
basis
the
on
such
of
appraisals of the future
that net
profit for last year (1950>
$1,748,500, a gain of $4,450,previous year.
According to President Kohn-;
was
293
over
to approximately $2,000,-
ings
up
000
will
it is felt the
free
be
in¬
Federal
of
tax."
come
of orders at Dec. 31,;
$18,100,000. At pres¬
Backlog
1950 totaled
it
ent
is
of the
in
reported
by
officer
an
to be "something
company
of
$40,000,000."
Cur¬
is accepting
for delivery running into
excess
the
rently
orders
company
1953.
•>
original line was four dif¬
ferent products.
It is currently,
making 100 different products and
developing many others.
Current
assets
Dec.
31,
1950
Its
.
$6,283,594; current liabilities
were
$1,871,029.
Capitalization: 21,892 shares 4%preferred outstanding-
cumulative
which
on
there
$3.50
are
share accrued dividends, and
shares
common.
in
Current
over
price
per
926,-
>
the
counter.
around
$7
per
•'"* '
share.
■
The company seems? to be com¬
better, sounder
profitable and the way
to have been paved for
ing
back
and
more
appears
dividends
bigger,
on
common
stock.
;
Original Name Restored
At
annual
stockholders
tion
meeting
May 23
on
approved
a
resolu¬
to
change corporate title of
the company to its original Jack.
&
Heintz, Inc. by which name the
company
is customarily
and referred to.
The
known
•
how" of.
its present management and the
important position the company
apparent
"know
occupies in the air transportation
industry makes the stock look
especially
war
not
attractive in peace
The company
economy.
a
marginal
company
and
or
is
sup¬
plies essential parts to "practically
every aircraft manufacturer and
air
line.
is around for the psrtials but this is
the moment.
The new Publlb Housing Bonds
keeping
H. C. Davidson
the tax-minded
Hartley C. Davidson, partner in
the tax-sheltered Treasuries. This has also
municipal obligations.
Henderson, Harrison & Struthers,
passed away on May 28.
coming along soon seem to be
away
tcftake
*
bit rapid.
mild buying interest
not too vigorous at
buyers
particular.
putfwhat
switching from other securities in order
A
Heller
over.
June
jfor the longest-
This brought some buying into the 2 fpissues,
funding issue,
income
Outlook
reception for the
to work were encouraged
1956/1958, and the 2V4S of 1956/1959.
buying
Such
constructive influencefupon the short-
Deposit banks which have been reluctant to
advance has been a
Charles H. Cairns
is
Traded
still seem to b^-in for rough
weather, despite a somewhat improved tone, in lineywith what has
been going on in the rest of the eligible obligation^. The opinion
is strong that the differential between this issueland the nearterm eligible taps will have to decrease.
This A&ill be brought
about by selling the September 2V2s and buying*'the. restricted
term
con¬
baby to
war
February, 1948, had
had enough, stepped out and that
721
bank
strug¬
to
years
peacetime
big
earn¬
ducer but by
Bank 2%s Continue Vulnerable :y ;
The
associates
spectacular
steady
up
stamm "it appears that 1951 earn¬
widespread, following the Korean crisis, has abated, and there is
considerable question as to whether there will be any repetition
of this in the future.
The loan pressure appears to have been
The l%s were not without plenty of buy
GARDEN
which, with
constructive
though the inflation fear of the kind that was so
as
institutions that were sellers of these
W, Harry Young Opens
a
to
scaled
chewed
and
t
overhead
1949.
While there is still considerable diversity of opinion as to
what is likely to happen to yields and prices of government secu¬
rities there appears to be a growing feeling in the financial dis¬
trict that the worst has been seen in the government market.
a
The
rearmament.
the
vert
modestly
Better Market in
high
period of intense
Foy
heavy
gled for about 2J/2
agement
liberalization of the
the
ings;
constructive attitude in evidence through¬
out the list. The shorter maturities have been in demand and this
has been responsible in some measure, according to money market
followers, for the widening of buying, which has spread to other
maturities, especially the intermediate-terms. It should be re¬
membered, however, that although volume has expanded modestly,
there has been no significant turnabout yet in the cautious atti¬
tude of buyers and prospective buyers of Treasury obligations.
bonds thac will
exchanges will have to wait until
been
had
operation
government market has taken the mid-year refunding in
con¬
degree of convertibility. Any prog¬
which
time
with
advice
can
the
have been backing and filling without impor¬
favorable light with a
doubt, do nothing," is likely to be
followed.
They can'in¬
punishment
drastic
ed
rise
their
speculators who venture to be
short or long in sterling. Had they
been in a position to do so in
1949,
to
British expert opinion is
•
policy. As far as it is possible to
ascertain, official quarters belong
to the latter category.
if ster¬
the other hand, then
be an apparent risk
on
of the authorities
adopt neither of these
continue the present
to
question
materialize;
Counsel.
a
Z
Like Best
ciates retired from all
Sellers have not been so ag¬
gressive but there are stiii fairly sizable amounts of the ineligibles
around for liquidation.
The near-eligible restricted obligations
continue to attract attention, especially the 2y2s of 1962/1967.
The
2
page
Security I
enlarged takings by pension funds.
atv
seems
no
allowed
be
by the IMF and remove exchange t
there would
restrictions, and those who would
courses
be
can
further devaluation,
a
ling
prefef to follow the advice offered
like
it
$2.80
At
would
all
at
move
because there
to allow it to rise on its
those who would
or
to
were
present 100% safe to buy sterling,
tions of the ECE and revalue ster¬
own
it
disappear.
recommenda¬
the
follow
to
if
those who would
between
like
that sterling
in one direction;
feeling
widespread
Einzig
divided, how¬
ever,
relatively moderate appre¬
as a result
of which the
a
ciation
sharply
come
is
allow¬
to
appreciate too
they would like to
What
much.
see
opin¬
■-
despite the appearance here and there of
tant changes,
an
sterling
ing
Intelligent
British
of sterling
lution would be opposed to
the
in
are
upward direction.
Most of those in favor of this so¬
active
an
They
would be in
controversy.
-*V
convinced
that the natural trend
take
people
many
a
course
the layman to
eligible next year.
The tap bonds
return to elasticity
rather than to effect an outright
of
is
t
c
e
is
would
The sub-
don.
The
to reports, seem
market.
It ap¬
pears as though the psychological factor has undergone a change
for the better, and this should have a not unfavorable bearing in
time upon the whole list of government obligations.
The nearterm issues continue to dominate the situation, but there has also
been a moderate pick-up in buying of the intermediate and more
distant maturities. Commercial banks appear to have been putting
funds to work in the 1956/1958s and the 1956/1.959s, but these
purchases have not been too sizable yet. The longest bank issue
continues under some pressure because there is still the tendency
to let this issue go in favor of bonds that will become bank-
of the gold reserve.
crease
in¬
siderable
Governments
Operators in Treasury obligations, according
to be impressed with the tone and action of the
Europe, Dr. Einzig contends British Government
Council of
on
By JOHN T. CHIPPENDALE, JR.
divided British opinion regarding conflicting
International Monetary Fund and the Economic
Commenting
Reporter
from
affected switches into state and
Volume 173
Number 5022...
Commercial and Financial Chronicle
The
(2581)
=====
By H.
JOHNSON
E.
like
Life Insurance
Bank and Insurance Stocks
any
other owner, has the
right and should be free to sell
any of its assets, including gov¬
ernments; but this right ought to
Companies and
Inflation
=====
be
restrained
President, Equitable Life Assurance Society of the U.
In
ance
companies published by "The Spectator," Chestnut and 56th
Streets, Philadelphia, Pa., has recently been issued covering opera¬
tions of such underwriters for the five
years ended Jan. 1, 1951.
*
operations of a particular company or of the experience in a parMost all of the information is presented
from the point of view of the insurance underwriter and not from
that of the financial
vitally concerned with the current
nature of the insurance operations to
inflation.
anything that inflates
'
analyst
stockholder.
or
however, it is frequently desirable
Because of the vital
the analyst or stockholder,
and essential to give some
detailed attention to this phase of the business.
of
the
interesting tabulations presented in the Handy
Chart is the comparative aggregates of 135 stock casualty insur¬
.
ance
and
135
STOCK
CASUALTY
INSURANCE
A
Losses incurred incl. adj.
,
;•
-
Ratios—
Losses
/,
to
un¬
and
government, and its people,
another thing to urge them
not
to
far
cost
of
5.9
American
written
prems.
35.8
35.8
impact of the increased losses experienced last
companies
is
year
aggregates of the com-
~
panies and, of course, individual companies in
actually showed underwriting losses for the
The
>
above
I increased
by
ratios
3.7
also
point out these
number of
a
cases
year.
The loss
facts.
ratio
percentage
points. Expense ratios were well
.controlled but the higher losses reduced the underwriting profit
from 5.9% to 2.3% of premiums earned.
.
The underwriting experience of the last two years
by the
principal lines is shown in the following tabulation taken from the
i
.
TOTAL
■
PREMIUMS
AND
LOSSES
BY
LINES
re¬
assets
beneficiaries
of
life
insurance
policies. It is the policyholder, not
who
company,
inflation.
suffers
He
most
and his bene¬
Loss
Net
*Net
Loss
Losses
Ratio
Premiums
Losses
Ratio
serious
Written
Paid
Written
Paid
SURETY
AND
COMPANIES
-1950-
•*
Auto
$629,602,771 $275,638,544
__
Compens.
43f,8
$586,899,024 $239,951,767
40.9
213,698,530
48.6
418,729,391
225,652,581
53.9
439,261,090
150,602,543
47.7
288,872,867
131,227,399
140,592.908
68.7
154,376,856
109,436,458
70.9
201,916,117
67,391,881
33.4
189,798,149
57,556,254
30.3
phys. damage— 166,207,626
Surety
:
104,568,624
Burglary and theft—
74,998,133
56,376,303
33.9
132,727,237
44,607,829
33.6
12,340,461
26,764,099
11.8
91,034,510
12,409,793
13.6
35.7
77,566,909
30,497,088
39.3
Liab. other than
auto
Auto
45.4
■
'Excluding adjusted
expenses.
but
not
.
It is
however, causing
big liability lines, accounting for over 50% of the
premium writings, all showed an increase in the loss ratio last
net
"
year.
j
rate
This unfavorable experience continued into 1951 and recent
adjustments have been made which should improve this
showing.
•
■
.
Similar information is presented on the individual companies
the Handy Chart which is useful in making a comparative
'
in
'
analysis.
Also, it provides a ready reference on the experience of
the different companies as well as a valuable source of knowledge
and facts on mutual companies and the different underwriting
4
groups.
'
r'.:.;
''V\
'/■
;■
Advise El Paso, Texas
The
Program
in
New
York
conjunction
attorneys,
Mayor Hervey of El Paso, Texas,
announced
that
the
City
has
the
engineers,
submitting
City's
and
bond
a prelimi¬
nary
engaged the firm of Wainwright,
Ramsey & Lancaster of New York,
firm will work
with
tion of the
.
consultants
to
prepare
final
on
municipal finance,
preliminary
a
program
of
and
marketing
a
the
counsel
in
affect
plan which will be prepared
for the City's approval. Comple¬
New York
City
Bank Stocks
Record
of
growth not
acknowledged in market price.
Report sent
on
NATIONAL BANK
of INDIA, LIMITED
Bankers to the Government in
Kenya Colony and Uganda
Head
Office:' 26,
London,
Bishopsgate,
E.
C.
Branches in
Members New York Stock Exchange
Members New York Curb Exchange
120 BROADWAY, NEW YORK 5, N. Y.
Colony,
India, Burma, Ceylon, Kenya
Kericho, Kenya, and Aden
and
Subscribed
Paid-up
Reserve
Zanzibar
Capital
£4,000,000
Capital
£2,000,000
Fund.
£2,500,000
Telephone: BArclay 7-3500
Bell
Teletype—NY
1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
use
The Bank
conducts every
banking
and
description of
exchange business
Trusteeships and Executorships
also undertaken
others
whose
income
assets
are,
pot can't call the kettle
and
so
the
inflationary
parade
continues
with
the
sup¬
port of those who ought to be
which
opposed
continues
to
to
un¬
anything
inflate
our
often
when
the
late
we
war
approxi¬
was
Much has been
cause
crease,
and
it
is
pretty well
known that the Treasury purchase
of
gold through the banking sys¬
during the years 1935-1941
tem
the
purchase
Arthur Robinson V.-P.
of the in¬
Of W. H. Morton Co.
Arthur R. Robinson became
sociated with the firm of W.
Morton
&
Co.,
of
Inc.,
15
government
commercial banks
do
not
indicate
an
increase
in
bank
holdings
of
government
bonds.
Why then the continuous
increase
in the
total
money
sup¬
ply indicated by the current fig¬
ures
of
eight
billion
increase
during the last year?
;
That
increase
has
come
about
is
in
fixed
any
or
form,
bank
as¬
H.
Broad
Vice-
as
ier of O'Gilby
and
Austin.
Later
he
Cashier
was
and
Treasurer
of
Austin,
Grant
O'Gilby
and
until its disso¬
the
until 1942 when he
with
newly created
deposits, all of which add to
total
supply. The life
companies meanwhile
money
insurance
limited in dollar value.
been
However, have
selling
government
the large assets of the life insur¬ bonds which they bought
during
ance
companies and the much the war. At that time it was gen¬
larger amounts of insurance in erally agreed that it was highly
force make the business an out¬ desirable, from the. point of view
standing example of the destruc¬ of public welfare, that govern¬
cepted
a
States
Army
the
on
Air
ac¬
commission in the United
staff
Air
of
Force,
Gen.
serving
Stowell
Inspector (I. G. D.)
as
of North
African Division ATC. Since
1945,
he has
been Manager of the Mu¬
nicipal Bond Department of Fidel-'
ity
Union
Trust
Company
of
Newark, New Jersey.
tive force of inflation.
ment bonds be bought and remain
in
our
non-banking institutions To Form Vernon C.
natural, under such cir¬
Brown,
cumstances, to expect that the and particularly our life insurance
Scheffmeyer & Co.
life insurance companies and their companies. But the sale of gov¬
On June 30 the New York Stock
officials would be constantly alert ernment bonds into the market
Vernon
C.
to the possibilities of restraining during the last year has tended to Exchange * firms; • of
monetize them and to increase the Brown & Co. and Scheffmeyer &
inflation.
They have, in the last
money supply just as much as if Co. will be dissolved, and as of
year
or
two,
issued
warnings
about
inflation
and
suggestions they had originally been bought July 2 Vernon C. Brown, Scheff¬
for
fighting"' it.
Unfortunately, by the banks instead of the life meyer & Co. will be formed with
offices at 25 Broad
however, most of this anti-infla¬ companies.
Street, New
is
tion literature has dealt with what
the
and the people
could do to restrain inflation; and
government
Life company sales of govern¬
ments in large volume
during the
York City.
Partners will be Lewis
Howland
Brown,
last
Scheffmeyer,
year
It
is
would
indicated
are
by their
have been
well
enough
to
tell
the
tion
be
in
its
institution to justify mon¬
etizing its government bonds dur¬
Mr. Parkinson dis¬
tributed by the Continental Press Service,
*A
statement
by
N. Y.
general
partners.
Scheffmeyer
will
seem
difficult for
ing
the
high
through which
holder
course,
of
Eldridge
Brown,
Elizabeth
be
a
A.
limited
partner.
a
New Hendrickson
life in¬
Partnership
surance
Of
H.
Thomas J. Brady, all members of
the
Exchange, and John Rutz,
satisfactory explana¬
normal
times,
but
it
would
budget, that it should borrow,
if it has to, from non-bank lend¬
ers, and that it should control its
expenditures, especially for nondefense purposes.
Likewise, it is
well to tell the people that, in a
period of great demand, it is de¬
sirable that they refrain from un¬
necessary purchases of goods and
avoid,
in
every
way,
pushing
prices up by competing for goods
J.
Vernon
a
government that it should balance
Brightwaters,
/
The
alterably
of
preliminary plan is ex¬ very little of. it has dealt with annual reports. They
pected within a few weeks, and what financial
institutions, includ¬ justified by some life executives
the bonds will probably be issued
ing the life insurance companies, on the ground that they were es¬
in September.
could do, perhaps with much more sential
to
meet
the capital re¬
of
effect, to fight the inflationary quirements
industry.
That
request
Laird, Bissell & Meeds
supply
policyholders, they investments
trends.
-
the life insurance companies
monetizing their government
by selling them.
bonds
more
savings bonds holders and
whose
It
,/;r'
City's $5,000,000 waterworks rev¬
enue
bonds, a proposed $500,000
City "housekeeping" issue, and the
$975,000 library issu&.
New York Firm to
On Bond Issue
''•i;';.
■
with
and through the voluntary, not gov¬ lution in 1926.
more concern on the part of pol¬
ernment controlled, policies of the
Arthur R. Robinson
He served as
icyholders as to whether " they commercial banks and other fi¬ Treasurer of
'
have sufficient insurance, and on nancial
institutions including,
I M. F. Schlater & Co. until 1931.
the part
of beneficiaries as to regret to say, the life insurance In 1932
Mr. Robinson organized
whether their expected
security companies. The commercial banks
Colyer,
Robinson
&
Co.
of
will
be
maintained.
have
been
However,
making
long-term
Newark, New Jersey, and headed
these concerns are not limited to loans, mortgage loans and other
that firm
life insurance
The three
-
yet unbearable.
%
Auto prop'ty damage 315,589,286
Group acc. & health 204,517,200
'
r
-1949-
•
liability
Workmen's
.
i
•
upon
Street, New York City,
most which the life insur¬ bonds by the
President.
industry
would
suffer during the war brought about a
Mr.
Robin¬
through inflation would not be large part of the increase.
But son
began his
dollar loss, but a loss of prestige the government has not been
buy¬ career in the
and confidence, which would seri¬ ing gold
during recent years, 4he bond business
ously affect its future because of Treasury has not been financing in
1921 as As¬
the disappointments suffered by deficits, and the
banking figures sistant Cash¬
"Net
INSURANCE
before
The
ficiary are now suffering a loss of
buying power because of the de¬
preciation of the dollar.
This is
CASUALTY
loans
ance
Premiums
STOCK
too
understood
that
money
and
'Net
135
be
written about the
lars.
from
r'
I
inflationary
mately $60 billion.
T-L Parkinson
their
their
better
our
premiums in dollars,
in dollars, and
have all their obligations in dol¬
hold
the
Handy Chart,
;
is
cannot
realize
37.4
clearly shown in the above figures. Statutory underwriting profits
$127,498,149 shown
*
op¬
b e-
2.3
for the 135 stock companies declined from the
in 1949 to $53,315,041; This
represents the
:
ex¬
of
cause
ceive
'
sup¬
earned
37.3 *
Exps. incurred to net
n-
the
other
inflat¬
supply of money. If we continue
empha¬ to increase the amount of
money
sized that our money
supply just in the
people's hands, it will be
after the war was $150
billion, a increasingly
hard
to
persuade
year ago it was $176 billion, and
them not to use it for
inflationry
is now $184 billion. The impor¬
contribution to high prices and
tance of these increases
perhaps wages.
It
wages
penses
56.7%
The
i
in
make
the inflated money supply.
u n-
plies,
and
Exps. incurred to premiums earned—
-
to
as
creases
127,498,149
60.4%
prems..
of money.
the
804,267,261
earned
Underwriting profit to
-
inflated supply
increasing
practically
all
premiums
our
ligations,
eration,
incurred
of
black;
bearable
"
commercial
supply of money available to
»
outstand¬
53,315,041
•
;
company need
about its capa¬
meet
for
created
money
because
supply. All of this advice, newly
the banks could turn the criticism
however, relates to the use made
the
to
banks
supply by making
as
distinguished
is in short
ing dollar ob¬
its
868,623,805
-
from
for
so
-1949-
$2,426,018,388 $2,244,419,002
2,328,649,194
2,152,298,457
1,406,710,348
1,220,533,047
expenses™
Underwriting expenses incurred
Statutory underwriting profit
business
money
"investments"
supply.
money
companies could not criticize
commercial
ing the
tion should go
'
premiums written
Premiums earned
life
concerned
involve
-1950-
Net
insurance
the
It does not relate to the continued
inflation of that supply of
money.
It is one thing to avoid
AND SURETY COMPANIES
.
ance
less the infla¬
surety companies for the past two years,
TOTALS OF
life
be
not
city
*
rr>
One
The
by members
Anti-inflationary
Committee,
it
is
blandly stated that the life insur¬
supply to selling of government bonds by the life com¬
Says inflationary parade continues with support of.
insurance companies, which should be
unalterably opposed to
ticular line of insurance.
<•
-
recent report
a
Investment
money
analyzing the
realization
of the Financial
panies.
"The Spectator" has been one of the leading insurance authori¬
ties since 1868. Its publications are
very helpful in
the
flated money supply.
S.
Life insurance executive,
discussing concern of life insurance
business regarding inflation,
lays part blame for increase in
The handy chart of casualty, surety and miscellaneous insur¬
;
by
that such sales may be
monetizing
the bonds and increasing the in¬
By THOMAS I. PARKINSON*
This Week—Insurance Stocks
33
inflation
we
a
are
life
governments
period
passing.
New
insurance
should
The present partnership of Hen¬
drickson &
Co., 115 Broadway,
be
York
City, members of the
New
York
Stock
be
dissolved
June
Exchange, will
14
and
free, as is any other owner, to sell
them; but it is not entitled to a
partnership
guaranteed
June 15. Members of the
or
which to sell
pegged market into
as was
true last .year,
especially in a period of inflation.
It is true, also, that in case of
necessity or in the administration
of its portfolio, the life
company,
will
be
a
new
formed
new
on
part¬
nership will be Martin A. O'Neill,
W. Colford
Anderson, member of
the Exchange, Joseph A.
and
August J. Hoffer.
McGarry
34
The Commercial and Financial Chronicle
(2582)
Continued
from
.
Thursday, June 21, 1951
.
which would aggravate the knotty
20
page
.
problems
involved
in
.
supporting
the government securities market."
No Further Credit Controls Needed
that
suggests
a
been
of
a rather poor
marketwise
in
giving
itself
account
mends
the
Federal
Reserve
Board be given authority, for a
limited period, to
impose addi¬
tional reserve requirements on all
$ll/z mil¬
ating income of nearly
These
year ago.
a
recent
tivities.
of the, heavy arma-,
in anticipation
arisen in con¬
The question has
the
voluntary
nection with the treatment .of
loan
lion
the company's
in
of a few
Apparently the Justice
,debt readjustment plan
years ago.
investigate
Department is now to
cortain
this loan,
of
aspects
and
merit demands to come
whole
The
proceedings were
thoroughly in the
the time of the read¬
courts
out
at
justment
there
as
of the
For the first four months
It
outset.
the plan at
the Supreme
tion
Court
the
that
reviewed
was
on
by
was
down.
until
;
recent
the
the
given
dies
case
least
tion
distribu¬
dividend
token
a
income
for
through
746,217,
Net
the
operating
April amounted
a
months
four
gain of 22.1%
$10,-
to
over
the
1931.
interim.
1950
Loeb,
Lehman, Blyth Group
was
issue at
awarded the
of 100.3197%.
proceeds from the offering,
stock
will be made to the common
of Texas
equity
Service
Electric
the
stock
Co. which will add the sum to
stated
value of its
common
without
York Central reported a small net
mission
operating deficit against net
Northwest
the
free
a
sale
and
Texas
Worth area, with
Fort
will
capital requirements
be
running high, the
still
Federal
Reserve
sirable
levels
this
if
even
chases
and
to
The
government securities mar¬
SECURITIES
through
1980
the
will have the benefit of
bonds
sinking
a
or
improvement fund designed to
retire
JZy&huM
j
n
c
o
&
&>.
this
$3,450,000 of the issue.
fund
deemable
at
will
bonds
prices
be
re¬
ranging from
•
100.85%
25 Broad Street
the
For
New York 4, N. Y.
Telephone BOwling Green 9-6400
Members Nat'I Assn. Securities Dealers, Inc.
to
100%.
For
optional
clines
in
government bond prices
evoke
may
Finally,
speculative
will
be
purposes
redeemable
the
bonds
at
prices
ranging from 103.85% to 100%.
selling.
rise,
growing inducement for
long-term
as
there is
de¬
continued
a
rates
institutional holders of
some
ings
bonds
to
sav¬
their
redeem
se¬
banks.
freeze
to
these
inherent
in
the
would
large
securities,
short-term,
By
ments.
in
the
it
'
means
ap¬
parently would become possible to
commercial
such
support
banks
fa¬
stable and reliable
a
commercial
banks.
Th
second
proposal
in
established.
through
the
should
received
be
caution and
posals
are
to
Nor
re¬
be
re¬
against
reserves
loans
invest¬
and
other than Treasury ob¬
ligations, above a prescribed base.
The report does not state how this
base
would
be determined, nor
ments,
does it say
whether these
each.
of
been
has
under
the
However,
this
pro¬
a
there
of
the
short-term
acceptable
governments
serves
or
making
in
or
discussion
some
of
reserves
cash,
securities,
government
portion
in
carried
be
would
as
re¬
specific features
and
or com¬
ment. The loan expansion reserve
in
plan,
particular,
extreme
reservation; such pro¬
doubly unfortunate in
presents
a
the
are
disturbing
ques¬
tions confined to the field of gov¬
financing. It is difficult
visualize
really effective
a
ap¬
without
incurring the rapid extension of
control
throughout the field of
plication
these
of
plans
private financing. Should the pro¬
posed devices prevent any sub¬
stantial
credit
commercial
of
number
banks from
meeting the
necessary
requirements of their cus¬
the result would be con¬
tomers,
certed
attempts
available
doubtless
funds
make
to
other
from
sources.
would
borrowers
business
Large
shift
to
seek
fi¬
their
nancing to the securities markets**
to institutional investors. Hence
or
such
plan.
detailed analysis
system
with
banking system.
<
,
the
deposits,
keep
in
banking
period when the Treasury clear¬
a
ernment
against
which
financing
ly should be bending every effort
to place its securities outside the
to
increases
proposal
Treasury
port is called the Loan Expansion
serves
Any
facilitates
plan. It provides that commercial
banks, in addition to present re¬
quired
fi¬
government
easy
in
increase
v
inflationary potential
in
controls
commerical
over
bank
lending would probably be
accompanied or would soon be
direct
the
comprehensive
by
security
over
con¬
and
issues
placements. That has been
experience in other countries,
profusion of complicated and in¬
where
tricate
and
to
to make it realistic and workable.
committees
issues
capital
similar devices
possibilities,
and
many
problems would have to be faced
created
were
lending.
supplement restrictions on bank
allow for seasonal fluctuations in
be
the
ernment
perhaps more likely, in cor¬
bonds
at
significantly
would
nancing through the banks is well
in
or,
using
m
securities
an
The
One
government 'bonds
have
for
market,
curities and reinvest the proceeds
marketable
re¬
Treasury financing
short-term govern¬
the
followed
practical difficulty is how to
demand
for
credit,
and their
further
A
would
consequence
increase in gov¬
substantial
a
lending activities. Small
porate
variations in different parts of the
businesses
higher returns.
country. Another problem is how
single
All
these
in
considerations
to
policy
can
cations
in
is
but
in the
fashion, the
which
that
crease,
there
credit
the
among
A
banks.
bank
that
commercial
has
not
pur¬
loans
for
further
a
in¬
will
press
without
further
on
rais¬
govern¬
ment securities.
of
dom
to
fully
loaned
its
Proposed Innovations in Credit
Control
The search for
The
new
which
both
in
of
would
of
yields
on
not
re¬
private
in¬
an
govern¬
a
new
one;
situation
in
years
when
com¬
and
bank
loans
upward
an
indication
Washington thinking
lem
methods of
entailing
similar
prices
restraining
of
on
trend.
current
the prob¬
bank
lending
is contained in the report on credit
policy by the President's commit¬
This
end
thus
would
a
ing agencies. This would certain¬
more
free¬
ly be the
more
policies
should
jeopardize
the
ready flow of funds for defense
or essential civilian production.
its
competitor.
of the
For
the
country
as
whole, however, the effect of
an
increase
in
:loans
in both
same
would
be
the
cases.
ficulties, the proposed plans raise
further important questions which
of
report,
tary authorities intend to
plans in order to
released
at
the
likely to
use
deal
are
for fairly prompt
press
application. Yet the immediate
of
sult
such
the
with
situation, they
emergency
action
would
be
re¬
to
some
of the prob¬
of credit
use
controls. Because the proposed de¬
vices
carry such formidable im¬
plications, they should receive the
most painstaking public scrutiny.
The complexities of administra¬
tion
alone
alysis
course,
make
after
even
provisions
the
meticulous
absolute
an
will
details
Of
specific
the
released,
are
an¬
necessity.
many
remain
of
obscure
pend
problems
management.
whether
the
of
Regardless
additional
required under
be
in
the
ernment
market
money
form
each
of
securities,
reserves
plan
cash
their
of
would
or
gov¬
imposi¬
on
the concrete
However,
more
this
and
If
additional
requirements
refer to cash reserves, the Federal
substantial
sales
to cope with
of. Treasury
ob¬
it
all
the
in
appropriate Con¬
committees
manifold
work
banking system.
the
the
to
the
out the
makes
pared to point out to the authori¬
ties
portfolio
through¬
in
urgent that bankers be pre¬
gressional
readjustments
manner
which the plans are administered.
tion would bring forth substantial
ligations by the commercial banks,
of
of
because, in practice, much will de¬
•
Federal
Council
The committee report evidences
an awareness
the
Reserve would have
the
if restrictive credit
enhance rather than to ameliorate
May, was prepared as a
joint project of the Treasury, the
Reserve,
case
lems involved in the
In addition to the technical dif¬
an
the
expand
functions of government lend¬
loans
than
expand
credit situation
new
expansion
postwar
best
institu¬
with
We
in
assets
should be recognized. If the mone¬
modity
investors.
tional
might feel entitled to
ing the interest rates
the
market or to make
placements
share
growing energy for measures
designed to restrain private credit
a
direct
small
authorities
faced
ties in the open
banking. We have
with
we
are
demand
the
a
have to expect a drive to
and under these conditions,
real prospects that the
expansion
differences
iending policies
and consequently has a relatively
are
monetary
wide
energetic
show
to
the
proportion of loans to total
frequently have only
banking relationship and
usually unable to sell securi¬
sued
particularly important
the
likely
orthodox
be pursued. The impli¬
are
with
assets
commercial
seen
deal
to
general
effective
nonetheless
extent
thus
possibly
a
tee.
redemption
in
trols
in
tinuing
assuring
ment debt of
market
plans
securities
government
attempt
that
adjustments
the
cilitate future
is
ment securities is
con¬
made,
provisions of these proposals are
known, it is impossible to
risk
would
fundamental. After
more
made
some
ex¬
issues.
problems of
case,
support
necessary
This
term
in
long-term implications may
even
by
banks
much alive.
very
ury's financing plans. Also, there
were
Selected Situations at all Times
authority
Until
without
of Texas.
be
longer
the
short-term
market
the
plan,
Board
amounts of government
possibility
are
credit
substantial part of the
and
com¬
regarded as
appropriate
maintain an "orderly" market.
control
1957
pur¬
extent
monly
the
Commencing in
govern¬
involves
the
beyond
crease
RAILROAD
the
ment bond market around present
strain
of the State
wealth
find it de¬
may
stabilize
to
credit
a
government
months,
while private
an es¬
producing
from
way
coming
population of 776,000 and
timated
Specialists in-
in
the
In
long
a
market
bonds.
electricity in
of
West
and
still
are
we
limit,
In
oper-
have
ket, where a disturbance would
seriously interfere with the Treas¬
Offd. by luftn
Net
that
buyers of long-
government obligations, and
for
ap¬
to
proposed
new
Reserve
interrelated; excessive
pressure
upon
long-term issues
may unsettle the short-term mar¬
Texas Electric Bends
group
rather consistent
term
kets
change in the number of
contrast, shares outstanding.
Pennsylvania Railroad suffered a
The company is a public utility
year-to-year decline of 51.8% in
net
operating income and New engaged in the generation, trans¬
like
the
Under
1947.
plan
reserve
Federal
Federal Reserve banks have been
the common, which would
on
be the first since
,
carriers.
special
plan,
similar
very
loans.
together with a $4,000,000 cash
question of the contribution from the company's
RFCi loan terms, the background
parent, Texas Utilities Co. and
for Baltimore & Ohio securities
funds from operations will be ap¬
appears highly favorable. Its earn¬
plied to the company's construc¬
ings performance so far this year tion program. The $4,000,000 cash
has been considerably better than
contribution of Texas Utilities Co.
jpf« most of the other large
Securities
be
to
nized that
\
eastern
conditions, in gov¬
Government
pears
to
despite unpegging, the
be
reserves
Reserve
furthermore, could
ernment
securities.
This
plan,- be readily manipulated simply by
called the Primary Reserves and changing
the
reserve
require¬
order
Aside from this
that
certain
under
from
see any
continue
additional
the
that
held either in the form of cash or,
change in policy, it must be recog¬
.Laggard market action may there¬ competitive sale June 18 on a bid
publicity
supple¬
mentary reserve requirements be
related to demand deposits, and
ing the importance of the recent
justification for
A
group
consisting of Kuhn,
present controversy Loeb & Co., Lehman Brothers and
holds any adverse implications for
Blyth & Co. Inc. on June 20 of¬
security - holders.
Nevertheless, fered $11,500,000 Texas Electric
with the present atmosphere of
Service Co. first mortgage bonds
general
uncertainty, speculators 3%% series due 1981. The bonds
appear unwilling
to have any¬ were priced at 100.85% plus ac¬
thing to do with any situation crued interest to yield 3.33%. The
fore
the
that
is
suggestion
of $1.10,
up
bond
been
plans, either or both of which
recommends for adoption. One
and
from
Thus, in either
main
it
from $0.24 a year ago, before
deducting sinking and other re¬
serve
funds set up in the read¬
common
fears that the
.
govern¬
change
The
sepa¬
Federal
medium
securities
the
the
selling
year
quire
banks.
sketches two
report
prevent
com¬
where the issues are not clear cut.
The
the
would have to stand ready to ac¬
rate
ment securities. Without minimiz,
pletely solvent and that, there¬
fore, no plan at all was necessary.
With all of this background it is
difficult to
short-term
to
emergency
an
as
insured commercial
reported
B. & O.
share earnings
current
the conten¬
company
only
ply
that,
measure,
presumably
these considerations ap¬
Nor do
some
were
strenuous objections to
the
rather improbable.
later.
particularly the part played in the justment plan. On the same basis,
negotiations by certain officers that is before funds, it should be
and employees of the Baltimore & able to report at least $6 a share
Ohio who were formerly with the for the full year 1951. Of course,
RFC.
The point has also been it will be necessary to dedicate a
raised that prepayments on the large part of the earnings to con¬
Government loan has been slow. tinued debt retirement, but this in
Obviously, considering the lapse itself tends to add to the basic
of time, it would be impossible stature
of
the
junior
equity.
to
upset the readjustment plan Moreover, even with the necessity
now
for debt reduction it seems quite
regardless of what the Jus¬
tice Department's findings might possible that toward the year-end
be.
directors may decide to make at
thrashed
of Defense Mobilization. It recom¬
est rates for the indefinite future.
prospects
are
further
reinforced by the limitations im¬
j
posed upon interest rate policy by
It is generally
considered by
weeks. In part this has obviously railroad analysts that Baltimore & the Treasury's financing require¬
been merely a reflection of the Ohio's prospects over the balance ments. The huge size of the public
almost complete lack of specula¬ of the year are also bright.
One debt and the prevalence of short
tive interest in carrier shares, a factor that has been causing con¬ maturities
requires almost con¬
lack of interest that has been par¬ cern
in the near term
general tinuous refunding. In March, when
ticularly noticeable in the case of railroad picture is the prospective government bonds were unpegged,
the stocks
of the large eastern traffic
decline as production
of the Treasury was operating with
carriers.
There
has,
moreover, consumers
goods
continues
to a large surplus and had no sig¬
been one special consideration in taper off and beforei the slack is nificant financing scheduled for
the Baltimore & Ohio picture that taken up, probably in the fall, by some months. This brief respite
has presumably had an adverse the full impact of armament pro¬ has now passed. Consequently, the
market influence.
It is the pub¬ duction. Presumably this will fall monetary authorities are not like¬
to
pursue
restrictive credit
licity being given to the proposed less heavily on B. & O. than on ly
investigation into the company's other
primarily industrial car¬ policies that would disturb the
loan from the RFC.
Presumably riers. It is very closely tied up short-term market upon which the
the demand for the reopening of with the steel industry.
Even in Treasury will rely in large meas¬
this case has arisen as a result of the transition period it is expected ure in the period ahead. On this
the Congressional investigation of that steel operations will remain premise, a continued rise in shortthe lending agency's general ac¬ at a peak, as companies stockpile term
open-market
rates
seems
Baltimore &
Economic Advisers and the Office
persistent upward trend in inter¬
Baltimore & Ohio
Ohio common has
face
not
do
we
this
All
plans should provide for the
of short-term governments as
use
reserves,
Jr
k
of funds for investment.
If the
just
possibilities
how
would
practice, and to offer
and intelligent crit¬
constructive
icism.
The
powers
case
for
these
additional
is by no means convincing.
Having unpegged the government
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2583)
bond market and initiated
'•
a
pro-
of voluntary credit restraint,
gram
the authorities might have
waited
effects of these
asking for further
generally agreed
"
to
the
appraise
before
measures
*
controls.
It
is
would
the
in
be
mistake
a
to
discount
inflationary potential inherent
NY Stock
our
economy or to underesti¬
mate the difficulties we shall en¬
counter
in
dealing with inflation
Public
Utility Securities
r
under conditions of high business
the
of selective
combination
activity.
Inflation
the flexible support policies for government securities and the voluntary credit
threat to
our
restraint program
has taken hold
beginning to check the expansion of" private
credit. The
rapid growth in bank loans since
sound
and is
not
June, 1950 has brought
the gains in productivity, we can¬
not avoid rising costs and higher
is
long-run
a
The
'
'
«
1
*
:
-
controls,
and
point
more
"
banks
more
*
closer
the
to
where
*
1
that
*
the
the
-
rise
months
loan
in
be
anti-inflation
in
con¬
have
fabric
tory
of
j
■
practices,
which
is
to
tures, and
well
-
attended
the
effect
net
the
Scant
Current proposals for restrictive
controls
commercial
over
bank
*
lending
*
that
on
increase
the premise
in
based
are
an
bank
loans
'
raises the money supply and this
in turn
higher prices. Fre-
causes
! quently in the past, business ac¬
tivity, the money supply, business
inventories
moved
and
bank
together.
loans
But
the
have
causal
*
relationship between these factors
; is a complex problem that has
troubled students of economics for
*
great many years. This suggests
a
that
there« is
straightforward
question
of
simple
no
*
and
the
to
answer
tax policies
our
are
is
and
cause
which is effect.
„
may cause or at least facilitate an
inflationary
does not
*
>
To
*
this
solely,
terms
:
but
explain
mentS
-
rise,
that inflation is al-
due to monetary expansion.
recent price rrtove-
ways
-
price
mean
or even- largely, in
bank credit and money
of
supply
is surely a gross oversimplification. The strong inflationary pressures that have been
troubling our economy for most
-
*
*
of
the
arise
*
!
since
years
World
War II
from
a
great
variety of
which bank lending is
relatively minor factor.'
sources, of
-
a
deep
inflationary forces, it seems un¬
assign to bank lending
than
more
minor respon¬
sibility for the price trend. In re¬
a
very
cent years, some loans may have
been made which facilitated spec¬
ulation
in inventories
or
com¬
modity prices, but the largest
por¬
tion of the loan increase since the
end of World War II reflected the
unavoidably
of business
sult
of
higher
and
the
credit
others
needs
the
as
the
may properly ask
banking
system
should
have
legitimate
closed
its
doors
demands
to
for
funds in the
past, or should do so
Bank credit performs an in¬
now.
dispensable function
in
the
duction and distribution of
pro¬
goods;
it ranks equal in importance with
plant, materials and labor. With¬
out
adequate
bank credit, pro¬
languish. However,
higher production was the most
duction
potent
will
anti-inflationary force
the postwar years;
it is
in
even more
urgent today.
A further conclusion is that
der
divisions, these
operated
as a
unit.
un¬
current
conditions,
credit
policy cannot come to grips with
the chief forces responsible for the
inflationary pressures in our econ¬
The
4
that
'
*
-
postwar inflationary boom
began in 1946 was based in
large part
the deferred de-
upon
mands built up during the war and
the prewar depression years. Busi-
;
-
after
ness
to
the
replenish
obviously had
depleted inven-
war
its
*
tories
:
i
*
-
;
and
to
modernize
and
view of the
severe housing short building boom was a fore-
conclusion,
gone
boom in
as
was
great
a
durable goods.
facilitated by the
consumer
Spending
was
fact that business and the
general
public were able to draw upon
large liquid assets built
up
ble
every
should
measure
practica¬
be
as
lending
complicate the problem
of coping with these forces. To¬
gether with the monetary authori¬
does
not
ties, the task
to
follow
a
is to continue
now
sound
and
policies, and to eliminate the
financing' dtfring World War II.
Government policy was another
inflationary factor. The excessive
use
of credit for unproductive or less
essential purposes. This program
deserves
hearted
nancial
the
and
earnest
support of the entire fi¬
,
i
liberalization
stimulated
;
ing
boom
of
the
to
mortgage
credit
residential
proportions,
i
The government's buying
policies
;
for
;
tural
-
.
i
-
t
>
v-
foreign relief pushed agricul-
prices
to
uneconomically
high levels, and price supports operated
against
ernment
a
correction.
policies
also
Gov-
facilitated
repeated rounds of wage rises far
above
the
annual
productivity.
national
curring
The
situation,
war scares,
increases
in
with
interits re¬
was a
further
uneasy
.-factor operating in the direction of
.
,
higher
prices.
The
fear
of
war,
with its portent of shortages and
large government outlays, is
of
-
generally a strong price stimu¬
lant, and this was amply demon¬
strated
-
war
a
the
outbreak
of
the
in Korea.
For
!
with
some
months
we
have had
respite from
we
may
another
..that, of
rising prices, and
reasonably hope to avoid
inflationary
the
Kropp Forge Stock
Offering Quickly Sold
build-
undue
recent
surge such as
past.
But
it
The
offering
of
of common stock
123,000
of
shares
Kropp Forge
Co. at $4 per share, made on June
20
by Gerhart, Kinnard & ,Otis,
Inc., L. D. Sherman & Co. and
Morgan & Co., was oversubscribed
three to
Net
four
times.
proceeds
from
.
the
sale
of
these shares will be used from ad¬
ditional
working
capital.
The
company's business has expanded
very
rapidly,
the
prospectus
states, and this additional work¬
about
34%
The
The Kropp
steel
Forge Co. manufac¬
forgings,
including
drop, flat die and upset.
many
ers
It serves
of the leading manufactur¬
of
automotive, aviation, farm
implement, machine tool, railroad,
ship - building, construction and
other
industries.
At
the present
time approximately 60%
of the
company's production is for tanks,
system
11
and
revenues
of electric
revenues
obtained from
are
sales
com¬
coal
mining is important
as
as
a
Robert
several
of
the
utilities
in
"Far
tain
surplus
which may
a
of
60,000 each,
one
1,450 lbs.
in
1952 and
the
that
fair
value
rather
amortization"
on
expect
obtain
to
on
any
has been £ tower of
"There is only one Bob Boylan,
only
one man who gives so gen-.,
erously of himself but strikes so
5
hard and true when the interests
#
-'r
a
common
stock
one
goal
the
"Bob,
We
year
on
have
will admit Malcolm
Clarence A. Earl to
July 1.
.Exchange,
G. Field and
partnership
'
on
LOUISVILLE,
is
Page is
stock &
HAVEN, Conn.—Seymour
now
that
claim
a
is
not
on
y
r
shall
alwa;
service
your
goodby but
i..
tender!
you
we
E
so
long '
Arranged by Bankers
James
Taleott, Inc., factors, an¬
on
June 19 the private
sale of $3,375,000 of 37/s% subor-"
nounced
dinated notes to the New Englan
Mutual Life Insurance Co. ancV
the Massachusetts Mutual Life In
Ney
Berwyn
—
Co.
surance
June
;
The
notes
matur
1, 1961 and provide for rc
in
ten
equal
annum-
payment
payments..
The
loan
was
nego¬
tiated by F. Eberstadt & Co., In:
Proceeds of the sale, after a?;
plying $2,250,000 to the retireme*
full
The
E.
T.
¬
e
of
due
the
in
37/s%
1958
company
additional
.
subordinate "
held
can
$375,000
•
by
ti c.
borrow
under
>
£■"
thv
terms and conditions contained i..
the loan agreement.
'
(Special to The Financial Chronicle)
landing gears.
salute
we
of
institutions, will be usgd t
increase working capital.
Co., Inc., Marion E. Tay¬
Building.
With
jet propulsion engines and aircraft
Ky.
with
Stock
same
Moore &
lor
Joins Fahnestock Co.
NEW
now
York
James Taleott Loan
a
(Special to The Financial Chronicle)
Jones
New
know
notes
Stock
;
unceasingly to attc'.
beyond all others:
change the very symbol
tegrity and service.
"accelerated
With Berwyn T. Moore
Oliphant & Co., 61 Broad¬
-
labored
make
in
New York City, members of
the
indicates
sary.
New* York
wit;,
life
Present
earnings would be reduced to $1.44. The dividend rate
Luthringer indicated that he hoped to maintain
this rate and would even be willing to dip into the company's $7
million surplus should this be necessary to support the dividend
policy. If necessary the company will also apply for increases in
electric rates; at the present time, however, this appears unneces¬
the
wisdom,
th
has
this year,
way,
with;
'i
"Far beyond the call of duty, i
gave
is $1.20 and Mr.
Jas. H.
f
great,
a
Stock Exchange has been his
52% tax rate applicable in the last half of
Oliphant to Admit
,
tM
■
Boylan has served
institution
a"
are
power, f,withi4 insight;; into
hearts of men.
The life of
the small amount
early this
Exchange
,
<:*.
•
"Bob
Society of Security Analysts, estimated earnings for 1951 at
$1.50 a share based on the present 47% tax rate ($1.62 a share was
reported in the 12 months ended March 31). The company sold
With
Stock
stake.
York
l-for-10 basis.
the
of
*
of property to be used in connection with Electric Energy, Inc.
President Luthringer of CIPS, in a recent talk before the New
267,000 shares of additional
foi
strength,
a man with a genius for
inspiring love and abiding loyalty.
original cost is now the regulatory
itself has never had a rate base estab¬
plant, except perhaps
new
admiration
yet he is
than
company
lished by the commission.
The company does not
Governor.
a
as
and
has
This
recent court decision in Illinois
years
respect
He
\
a
de-/
of
years
profound
guided us through years;
of peace and war, through crisis
and calm, with brilliant judgment.
about 54J/2% bonds, 12^% preferred stock and
33% common equity. They hope eventually to reduce the bond
rate below 50% and to maintain the common stock ratio around
Regarding rates,
11
He
are
35%.
after
seven
Our
company about $10 million cash which will take care of re¬
quirements in 1951. They have no definite program for future
financing as yet. The company has made very substantial progress
capital ratios
affiliated with Fahne¬
Co., 205 Church Street.
Jackson Diggs Opens
Walston, Hoffman
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
LOS
M.
M.
ANGELES, Calif. William
Beamish
is
,
Boylan has retired fron:
Board
man,
the
since 1932 in readjusting its top-heavy capital structure.
salute to
a
his accomplishments are
the other in ,1954.
months ago
T
.
.voted service; four years as Chair¬
become
some
fol¬
ROBERT P. BOYLAN
~
"Bob
at 1,000 degrees, with a
Construction costs during 1951-
stock
resolution
great leader:
a
pressure
common
the
Exchange, here record
single boiler for each generator.
53 are expected to average about $14.5 million a
year or a total of
$43.5 million. Of this, about $20.6 million will be spent for the
two generating units and some incidental expense.
The sale of bonds and
of
text
Governors of the New York Stock
Average annual growth in energy demand for CIPS is about
KW.
To meet this the company will dtid two units at
These units will have
,
"Individually and as a group,
the members of the Board of
30-35M
Hudsonville
'
we,
Because of the
gamble in this commitment.
one
The
and
feels there is not too much of
thecal! of duty,
unceasingly to at¬
goal beyond all others:
lows:
Northern
available
large size
high efficiency of the generators to be installed, such power
will be very
low-cost? and in the case of CIPS can be used to
help replace some 70,000 capacity which is old and inefficient. If
in the future the AEC should entirely cancel its
purchase con¬
tracts, CIPS would have to use 130,000 kw power form Electric
Energy, Inc. However, the surplus over the 70,000 inefficient
capacity could easily be absorbed by the growth of the business
over a two-year period, it is
estimated, so that the management
power
beyond
change the very symbol of integ¬
rity and service."
,
any
-
To make the New York Stock Ex¬
Energy, Inc., a $90 million company which will
furnish power to the Atomic Energy Commission. Most of the re¬
quired funds will be loaned by insurance companies, but CIPS
and four other utilities are contributing $3.5 million
equity funds,
on which they will be allowed a return of
8%. Any earnings in
reasonable amount above 8% would go into a reserve to
help
stabilize future profits.
Such earnings, however, will probably not be a material fac¬
tor; the principal benefit will be the utilities' right under their
use
The life of the
men.
he has labored
The company has joined with four other utilities in the for-
to
with
with:
into-
Stock Exchange has been his life.
maiton of Electric
after the AEC has taken what it needs.
wisdom,
Boylan
the hearts of
Illinois.
contract
P.
power,
a source of revenue, the
potentially weak factor in
large
insti¬
with
insight
a ton of coal is a substantial
decline in the production of coal. The com¬
many of the better mines in Illinois, such as Peabody
supplies
Boy-1
great
a
tution
electricity used to mine
which
adopted
the Board
lan has served
\
offset to any future
Coal
resolu¬
"Bob
X\
a
90% increase in the past decade in the amount of electricity
used, due to increasing mechanization. This trend seems likely to
continue, with the installation of more of the large mining ma¬
chines, which are only now coming into use. Thus the increasing
pany serves
A
said:
In 1923 revenues from coal mining companies
of electric revenues or nearly double the present
However, for each ton of coal mined there has been about
of
of
Exchange.
tion
coal and oil.
constituted 23%
amount
the
by
the earnings set-up.
ratio.
active
member
j^fl
f
*
an
A
road machinery, air
compressors, pumps, farm implements, furni¬
ture, shoes, washing machines, ranges, fluorescent lamps, bathroom
fixtures, art pottery, light metal products, etc. Industry in these
areas has developed steadily and is
especially well diversified.
While
-
*
(including about 12% to coal mines).
is rich in natural resources, including
area
of
after
Chairman. Mr.
is
Principal farm crops are corn, wheat and soy beans and there are
important grazing areas for fall feeding of cattle. There are 387
grain elevators in the area. Industries in the territory produce
ing capital is needed for expanded
operations.
tures
Electric sales contribute 92% of
mercial and industrial power
basis, but the
community.
the
21
years' as'-
Boylan is still
served is in
area
and
Some 216,000 electric customers are served in 500 com¬
and adjacent rural areas, located in 61
counties; and
natural gas is sold to 36,000 customers in 21 communities.
Only'
whole¬
result of the government's deficit
t
sensible
policy of restricting but not un¬
duly curtailing credit, to foster
prudence and caution in lending
a
:
under¬
taken to insure that bank
ex-
pand its plant and equipment. In
age, a
Nevertheless,
omy.
While the
interconnected
May
four
munities
,
J
all
are
.
on
formally saluted Robert P.
Boylan, who retired from the Board
8%.
gas
re¬
rising level of prices
output. One
whether
.
several
management does not consider it
business.
.
An expansion of the money sup¬
ply, under certain circumstances,
"
not
realistic to
and
miles in southern and central Illinois.
the
Exchange
IllinQis Public Service Co. (CIPS), with annual reve¬
about $30 million, serves an area of some
20,000 square
of
nues
designed to reduce spending
consumers or
these
which
the
prune
In view of these broad and
j
has
success
efforts to
of
infla¬
an
Governors of
Stock
Central
statu¬
civilian budget, or to obtain value
received for our defense expendi¬
by
Inflation
and
Banks
of
wages,
and
perpetuate
tionary spiral.
The
excess
woven
institutional
time.
'
are
living, and the farm price
support program into a complex
the field of credit control at this
»
a
cost of
We
siderably smaller than a year ago.
All this raises pertinent questions
concerning the advisability of embarking upon new adventures in
'
program
increases at rates far in
are
demands
will
ahead
developing
bright. As long as we persist
in the practice of periodic wage
prices.
tightening their lending policies.
Also, there are many indications
:
of
of
York
June 14
Central Illinois Public Service
Company
prospects
ex-
they are reluctant to
pand their loans further and
economic and polit¬
ical way of life.
The
Board
New
'
credit
Exchange j
Boylan
Honors Robt.
By OWEN ELY
'
that
35
now
connected
with Walston, Hoffman & Good¬
win, 550 South Spring Street.
LOS
son
ANGELES,
Calif.—Jack¬
Diggs is engaging in a secu¬
4016
rities business from offices at
Wilshire Boulevard.
The Commercial and Financial
36
Chronicle
■
.
.
Thursday, June 21, 1951
(2584)
Continued
K^ununuea
from
Href
>nnne
jrom jirsz page
*ng recent months discovered some
«
new
'•
Qf recovering
wayg
uranium
economically from extremely low-
DvaJhiivmm
KIaimiII
pMUVIIVf
graae ores,
Jft1 vUUvinif
Atomic
Xinciyy
uranium
^
T*
a
FlUIPllAll
All llllllUlIlal 1 It 11V11V 1ft
With
%
TMHlvelvial
Am
value.
particularly when thein combination
some
other substance of
As a result of developoccurs
this, we have re-
menls
such
centiy
found it possible to join
'
monopoly. This is true, in that it
is controlled and to a large extent
which is already having a owned by the government.
But
and
far-reaching
impact there encts, I believe, its similarity
as
the
military
strength of this country—a mobili-
Bnnsh in entering into an agreement with the Union of bouth
zation
Africa whereby we will be able
to obtain a good share of the vast
quantities of uranium contained
as a very minor constituent in the
residues of South African gold
production. We are also working
0ld a similar arrangement here at
home which will enable us to
gain access to at least part of the
uranium occurring in the phosphate beds of Florida and the west
by extracting it at one stage of
the manufacture of triple-superphosphate fertilizer. ■
V
j think you will have detected
many similarities between this raw
materials operation of ours and
the raw materials operations of
other industries with which you
are perhaps more familiar. I think,
too, that you will notice no startling departure from normal in-,
of
the
solid
industrial
and
upon our economy.
with what we ordinarily think
'
of
governmental monopoly. In
lespects it is an enterprise
by the President that he had di- depending upon the initiative and
rected the Atomic Energy Com- skill of industry and science. It is
mission to continue its work on industrial in nature, it is indusall forms of weapons, • including trial in its objectives, and its opsomething we had not heard men- erations are carried on by industioned oilicially before in public, trial
and scientific people emthe so-called hydrogen or super- ployed
for the most part by
bomb; and we have seen attest industrial concerns or educational
program
recently completed at institutions. These are facts which
Eniwetok, which, among other many people do not realize, but
things, has contributed to the de- they are, nevertheless, true, and
velopment of such a weapon. We I think they are facts which should
Jhave also seen undertaken a greatv be borne in mind by those who
expansion of our atomic energy wish to understand and follow the
production facilities which com- progress of atomic energy develpares in magnitude to the wartime
opment in the United States.
In
the
field
construction
hattan
atomic
of
have heard
we
as a
most
energy,
announcement
an
effort
of
the
Engineer District.
Man-
Let
disturb-
ing fact that through the treachery
and deceit of disloyal people the
Soviet Union has in its possession
considerable
a
tion
about
body of informa-
the
project that
viously
thought
:
inviolate.
^
It
had
we
had
'
pre-
held
been
is in this setting
dress you today.
atomic
wartime
weapons
that I ada setting
of us would
It is not
which I believe any
choose to find ourselves if
tn
had
we
any choice in the matter. It is a
setting created not by us, but by
of men who dnect the destinies
the
world.
Communist
political,
world.
-
possible to the-areas of
as
+n^
KC°T<m^
3
of weapons.
,
This, then, is the main produc- our 95 largest cost-type contracts
tion line of the atomic energy of all types, we would find that
industry. It begins with raw ma- 20 of them have gone to universi-
ties, 18 to chemical and minerals
engineering firms, 16 to industrial
say
people are trying to do.
objective of the United
to confine this competition
insotar
chosen to stop, as could the list of
major production and industrial contractors. If we were to
carry these lists on out to include
our
design and engeering firms, 13 to
people who provide services of
various sorts, such as trasportation, 10 to construction firms, 8 to
industrial research establishments,
5 to electrical equipment manufacturers and 5 to hospitals and
other private research organizaf
.
bke ^be
pe0pfe who
industries, they
0fber
to take a raw material
as a
are
occurs
natural resource and extract
,
o
,^ing
industry.
Our objective , curing
-
•
1
:
.
'
_
^ '
Magnitude of-Atomic Energy ^
Program
_
K
evidence. The processes
And Four: xo protect the health
industrial in nature, but 0f our employees and the people
quite different from any- who inhabit-the areas in which
*s done in. any other we carry on our operations.
,
more in
are still
trying tbey are
First of
run many
that
^
-
.
,
■
I,
tions.
.
It ls the
States
sity of Tennessee, the Battelle
Memorial Institute, and the Oak
Ridge Institute of Nuclear Studies
and the National Academy of
Sciences.
This is a long list, but it could
be extended out a considerable
distance beyond where I have
search in the development of
atomic power; and a third is the
fueling of reactors for nuclear research and development and the
production of radioisotopes. As of
now—in June, 1951—for the reasons I described at the outset of
these remarks, by far the preponderant amount of fissionable material is being stored in the form
dustrial practice in the next step terials and it carries through the
of our production chain, which is processing and refining of these
processing. It is our objective dur- raw materials, the production
today there are more than 90,000 ing this phase to take the raw. from them of fissionable materials,
people engaged in atomic energy material uranium and refine it to. and the utilization of these fiswork in this country—in super- degrees •of extreme purity.
This sionable materials in the manuvising the program, in carrying on is a straightforward industrial op- facture of our final products. Like
the day-to-day operational activj- eration. and it is performed-for most
other industries, we also
ties, in protecting security, and in us for the most part-on a unit maintain facilities where we can
building new facilities. Of these, price contractual basis by indus-, test our. products, and we'.surless than 5,500 work for the gov- trial concerns who -are normally round our main production artery
ernment. The remaining 85,000 or engaged in the minerals or cheini-r with a large and active scientific
go
work for the more than 500 cal processing business.
One oiL research p r o g r a m designed to
prime contractors and major sub-, our largest contractors in the
achieve the following main obcontractors to the AEC who per- stages of this processing and re-t jectives:
v
/
■ • V
'♦
form virtually all of the functions fining operation is the Mallinck-.
0
T
increase the efficiency
I
_
that
with
.
Electric Products Co., the Univer-
weapons; another is the construetion of nuclear reactors for re-
lhat are ,cal;rie! °nwe normally rodt Chemical Works o£ St.Louis. of our'production processes.
within
framework of what
\\_.
call the atomic energy program.
:
The Processing of Uranium •
Two: To find new and better
This
point can Be illustrated ■ When we reach the next step of uses tor our products.
.; "
further l think by describing for our production chain, we find Jhe.
- Three; To improve the quality
ou ju^t exactiy what it is these
hand of government somewhat of our;products, * f, .
, > ''
of
We: find
ideolggical and eco-
competition
nomic
branches in several different di- Institute of Technology, the Unirections. One is the production of versity of Minnesota, Sylvania
.
ourselves today in military as well
as
what I mean
illustrate
9°'' Columbia University,
North American Aviation Co., the
Dow Chemical Co., the UniversiFrom this point forward our ty of Rochester, Massachusetts
atomic energy production chain Institute of Tecnology, California
F
f
Branches of Atomic energy
Production
atomic energy is an
enterprise run largely by industrial arfd scientific people. As of
when
,
We have heard, too, the
me
which we have recently engaged include the Westinghouse Electric
to construct and operate our new Co., now engaged in building for
$900,090,000 production plant to be us a land-based prototype of an
located near Aiken, South Caro- atomic engine for submarine prolina. This plant, similar in nature pulsion; the General Electric Co.,
to the Hanford facility, is being so which is developing another simidesigned that it can be used to lar unit; and such firms and inproduce materials for fission stitutions as the Monsanto
weaons, or hydrogen weapons, or Chemical Co., Iowa State College,
for fueling reactors.
California Research & Deveiop-
-'Tbe principal facilities we.-
.
V
I hope this has given you some
idea of the diversity and magni-
tude of would like now to prothe atomic energy give
gram. I
you some
idea of its penetration
into our economy as well. During
the 12-mohth period ending last
March 31, the AEC entered into
nearly 11,000 prime contracts and
purchase orders, of which about
52% went to business firms employing less than 500 people, about
41% to-so-called "big-business"
for the,proof-testing
and 1%- to .educational ini
^
^
a demand. In our case, the raw "lu^n a^d from it .to produce the Qur Droducts aro th^ atomic weap-*>stliiutlons, and:othgr% TJ^d/jrgcipwhich we:
ttS2^nanHenl^tonfhmS^BoT^re of ons Proving 'g£'ou£d-&t^
'Prime contracts M
of the
that .has: it •
Atoll in the Marshall-Islands,-"the-torn entered into more than 280,i"f
5 for saler whether af home or.
utmost importance (to usKfor
area fteaf.Das ^egas>'-^00 V subcontracts . and
purchase
^
-Unlike most other indus< J30can he made to release the, N
and the*44(I900-aSrb nuclear orders,:
/which 62 y2% went to
a+^ tries vve do not compete for our energy locked in the hearts .of
g0_called <Wl business/v36%-to
fipl/fnf nffllfar force. St what- market In material 0n evervopen lently, atomic a bomb, either vio- X researcn facilities ranging all ^
basic raw
the
them as in nuclei, or slowly,
research
field of military
But Hw
nracticallv
nalacmxies, ranging an "biS business," and 1%% to eduinstitutions and nthprq
ever the terms of the comoetition
J?drKea*
Prdcucaiiy every na
.,
rpantnV
the way from one-or-two man cauonai rnsuruxions, ana otners.
compexiuon, tlQn
the world including our as ln a nuclear reactor
onerations in universities and col- Dollarwise, of course, the great
we mean to win it.
uranium is
controlled comB°th of these materials are pro- operations in universities ana coi
DreDonderanre ftf our Drimp rnn.
Atomic energv I believe nlavs
controuea com
,
.
.
nlant_ nwnp(fhv leges to the great multi-million preponaerance or our prime condvtrldiv Lnrtant part in modity and thus excluded from duced in great plants owned by
'ii
national laboratories
are tracts go to what is normally
an
extremely important
the normal channels of trade But the
government and located in oonar national laooratories, are
,, , ..
.
.
hut T think it
this
competition.
It is
largely
normai cnaoneis 01 traae. i^ui
nfyp „nvprnmpnt reserVations
located in nearly every state nr ?aifeo Dig ousiness, out I tninK it
frhrnnah atnmip
fnr
the law 0± suPPly and demand op- the huge goyemment reservations
union Like the industrial side ls interesting to note that of the
through atomic energy, tor exam- erate iust the
and th
:
whose names have come to be syn- irie union. i^iKe tne mausiriai siue
°
,
c.c:nn nftn nnn
pie, that we have been successful
sft™ei
onvmous with the phrase "atomic
of our Program, they are operated Sreat sums—nearly $500,000,000-in confining our competition with Zt
energy" in thL coSy. These by private contractors. I think a put out through subcontracts dur-
infer:|uiu>t world"war
out'
We
from " a Product £or which there
Phare »4omaintain
.
u
a
an
anurcrv
^vam
samp
n
p
plants are owned by the govern¬
ment, but they are operated on s
uranium
—
7
considerable part through
m some
atomic
I bfelieve, that if
competition skills over into
this
energy,
the
military arena/ we shall win
it in a military way. And it may
well
be
least
at
partly through
atomic energy that if this compe-
tition
remains
spheres
indefinitely in the
international
of
and
on
economics, we shall
those grounds too.
For
these
reasons
I
politics
win
it
it
count
a
privilege to be here today and to
report
to
you
ergy program
June, 1951.
I think it is appropri-
ate that I should be here, not only
because of the obligation that we
who
serve
in government have to
time to time
report from
on
our
activities, but also because I think
we
of
the
mission
Atomic
run
Energy
Com-
the kind of enterprise
that you
gentlemen—as leaders in
business, industry and the profes-
fsionscial
understand and have
interest
a
spe-
Indiictrlal
31
a
pects for uranium production are
the encourthe gloomy side,
more on
on
and will remain
so
for many years
to come. It is true—in spite of an
intensive exploration program —
that we have not yet found another deposit of the grade or magnitude
of
the
fabulous
atomic
Shinke-
lobwe mine in the Belgian Congo,
from whence comes our main supPly> but we have found a number
of promising new uranium areas
here in the United States, particulariy in such, states as Arizona,
s
eLn~ S1?"1
governmental
bv
irrmortant
b^pvp
these
+0
thev
our
arp
The role
companies
is
nro^ram
that
?,or?hv
of
so
I
SDe_
The Ca-
enlarged under a program that
will eventually cost more than
$200 million and will be lurther
supplemented by the new $500
million U-235 plant now under
construction near Paducah, Ky.
, •
.
,
_
1 have been trymS to
you of
the kind of people who operate
our program. Any such list would
have to include:
(1) The University of Chicago,
which operates for us the Argonne
jjatj0nal Laboratory, a research
and reactor development center in
<Illinois; (2) Associated Universities> Inc^ a New York corporation
nnnrpmc
concerns.
The investment'm plant and
equipment for < an enterprise of
the magnitude of the one I have
described is, of course, very large.
By the end of this month it will
stand at something very close to
$21/z billion—a fact which places
,us near the top of the list in plant
+
n
may
nV?g uP new
become
well
lcaat-
Beyond this,
we
have also dur-
operate tbe Brookhaven National
Laboratory, a basic research center Qut Qn Long isiand; (3) tbe
Carbide and Carbon
Chemicals
value of plant assets, such enterprises as the General Motors Corp.
and the Pennsylvania RR. By the
time our current expansion procompany, which operates the Oak gram has been completed we can
Rjdge National Laboratory, a basic expect our investment in plant
- Another
of our principal pro- and applied research center in anc* equipment to have grown to
duction contractors is the General Tennessee; (4) the University of approximately $4^2 billion.
Electric Company, which operates
the plutonium production works
California,'
the
To build and operate an enterLos prise such as this naturally reat Hanford, Washington. We now Alamos, New Mexico, and the quires the expenditure of a great
have underway at Hanford a con- Berkeley Radiation Laboratory, a deal of public money. During the
struction program which will basic research center on the west current fiscal year alone the Coneventually add more than $200,- coast; and (5) the Sandia Cor- gress has appropriated slightly
000,000 to our original investment poration, a subsidiary of Western over $2 billion for atomic energy,
of more than $350,000,000 in this Electric, which operates our an amount almost equal to the enweapons
which
research
operates
center
at
.
Sandia Laboratory at Albuquer- tire amount spent on atomic enOur third main production con- que, the field point of coordination ergy under the Manhattan Engiis E. I. du Pont de Ne- between the AEC and the armed neer District, and we have asked
mours and Company, which origi- forces in weapons development:
for a regular appropriation for
nally built the Hanford Works and
Such a list, I think, should also next year of $1.2 billion. We, of
nadians, too, have had a great deal plant.
v<*fnr»
led to as
slaved
concerns
other vital materials, jne u"2^a P1"0^1*ctl0n .Plant aJ Cak
assets among the great industrial
Actually, I would say from my Bl°Se. This plant, which cost $500 formed by njne leading north- enterprises of this country. We
own observations that the pros- million to build, is currently being eastern educational institutions to exceed, for example, in gross book
Atomic Enere-v
gye
ustrial
resources of
New Mexico and Utah.
in.
COSt—plus—fixed—fee basis by pn-
world. These reports, to my mind, "JA.
u uiy
"
sound very much like the reports
.
'
v
we have become used to hearing
.yne. 1S.
caroiae and carbon
— and
which are so frequently Chemicals Co., a subsidiary of Unproved wrong—about the world's ">n Carbide Corp which operates
en-
it exists here in this month of
as
,
considerably
of the United States aging than
the atomic
on
tiKsourrcs
uranium itesources
.a
!n this connection, we sometimes hear gloomy reports about
the uranium resources of the
_
tractor
'^Volume 173
it
.
.
.
The Commercial and Financial Chronicle
do not spend this money as
we
get it.
We obligate
course,
soon
Number 5022
,
as
fast as we can but it is usu¬
as
ally paid out
months
several
the
over
or
of
course
particu¬
years,
larly when it goes for construction
(work.
A more accurate measure¬
ment, tnen, of the rate of growth
the
of
atomic
energy
is
program
perhaps the rate at which money
Js actually paid out, rather than
the rate it is appropriated
ob¬
or
before
be placed into
production. General Quesada, who
On this basis, I believe
notewortny tnat, whereas in
it is
1950,
year
actually paid
we
out about $550 million, we will in
the current fiscal year pay out
$850 million, and in the next fiscal
^ear approximately $1,275 million.
Altogether, since the
the atomic
of
energy
inception
in
program
they
can
the
commanded
task
that
force
funds
obligated,
expansion
mainly
program.
for
our
I have just mentioned a lot of
big figures, and from them it is
to
easy
the
get
that
impression
the atomic energy program is one
of the largest consumers of the
taxpayer's
States.
To
dollar
in
its proper
to
mention
that
the
budget for the fiscal
cludes
the
United
keep this discussion in
perspective I would like
than
more
President's
1951 in¬
year
billion
$48
for
national
defense, and in contrast
to this, only $2 billion for atomic
energy.
If you believe, as I do,
that
the
principal deterrent to
large-scale Soviet aggression has
been and is
this
stock pile of atomic
think
I
weapons,
that
our
will
you
that
money
agree
for
goes
change,
be
membership
tne
July 2 will ad¬
ready
time next week to
some
all that can be said publicly
say.
The most
teristic
distinguishing charac¬
the
of
next
widely-
most
mentioned
product of atomic en¬
ergy—atomic power—is that it is
not
yet on the market, and I, for
extremely hesitant to say
just wnen it wiu be. There are
one, am
several
for
reasons
this.
first place, there are
In
the
technical dif¬
atomic
power
will
tnat
of
plants at
them
make
eco¬
In
state of knowledge,
our
we
present
could
un¬
in the world that it could
chance
Industry
is
&
New
and
headed
Electric
York,
the
by
AEC,
Mr.
Pnilip
Company here
includes
and
in
Mr. Edward More¬
house, Vice-President of the Gen¬
eral
about them at this time.
Public
Utilities
New York.
tee
a
has
Mr. Spam's
very
commit¬
two-year survey of
We are presently
a
program.
giving
of
recently submitted to us
thought-provoking report
based upon
our
Company
intensive stuay to this
some
report,, and we expect to respond
to
it publicly sometime
in the
future.
near
We
from
coal
or
by hydro-electric means. We will,
a matter of fact, sometime this
as
in operation
at our Idaho testing station that
has been designed to produce, as
an
experiment, something over
100 kw. of power, but it will not
be the kind of plant that will be
put
year,
a
reactor
the
Mon¬
Chemical
Company, Union
Missouri,
Detroit-
of
Edison Company, the Dow Chem¬
ical Company, the Commonwealth
Company, the Public Serv¬
needed
to
produce power com¬
mercially. It will be, instead, pri¬
marily
main
process
is
research reactor, and its
will be to test the
we call "breeding"—which
a
purpose
attempt to operate a reactor
an
in such
a
way
that it will produce
than it
material
fissionable
more
whereby representatives of these
firms, organized into four work¬
ing groups, will be given an op¬
come
into
our
study the practica¬
bility of private industry building
and operating reactors to produce
to
and
Plutonium for the government and
for
power
time,
the
of
industry
at the same
presumably reducing
thus
of
cost
merit
There
both.
is
a
lot
this
to
idea, and we're
going to do everything we can to
it
make
work, but I don't think
get the impres¬
the public should
sion that these firms
be
consumes.
the Bechtel Corporation
program
able
going to
are
into
walk
to
of
types
new
and
tiles.
luminescent
Another
We
.-'--Products From
And
Atomic
Energy
important
atomic
commercial
why
power
isn't
therefore, concentrating
on developing atomic
are,
right
reason
now
our
labora¬
tories,
The Institute
has
estimated, for example, that our
power requirements by the middle
engines for the propulsion of sub¬
of 1953 will amount to about
marines
and
aircraft.
We
are^ of the total installed electric
much farther along on the sub¬
of
going to have both.
And as a
special bonus we are going to pick
previously,
given
I
men¬
have
we
been
directive by the President
a
work
to
As
weapons.
course,
tioned
all types of weapons,
on
the so-called
including
hydrogen
bomb, and we are doing just that.
l: We are working on the develop¬
.
ment of
hydrogen bomb,
a
im¬
on
proved types of atomic bombs, and
■
atomic
on
warheads
guided missiles.
and
for
artillery
We have not
marine reactor than
mind that eventually
own
on
in
the
cutting
we
atomic
of
costs
What
doing,
essentially,
is
share of the high
are
charging
a good
developmental costs of power re¬
actors to national security and, in
the process,
duction side of our weapons
the
that
capacity of the U. S.—an
equal to around 85% of the
power
amount
capacity of the Con¬
solidated Edison Company here in
production
New York.
third
and
number
the
—
propulsion
almost
reduce
will
vanishing point the
to
depend¬
radioactive
these
of
overrated.
be
can
and
actual
usefulness—both
potential
It
well be, in the long run, that
may
however, make the general state¬
ment that the bombs we are
ducing today
are
pro¬
considerably im¬
those used in World
War II, and they are being pro¬
proved
duced
a
over
an
on
industrial rather than
laboratory basis.
In
our
time
find it
time
to
to
think
development
necessary from
hold
tests
which
naturally
quite
tracted
interest
the
industrial
military
—
of
has at¬
private
they will constitute atomic ener¬
gy's greatest contribution, not
a
healthy development, I
we
intend to do
and
can
we
—
consistent
with the requirements of national
security
—
to
work
with
these
tives.
We have
held such
closely
series
series of tests at Eni-
1948,-we had another
earlier this year near Las
had
of
tests
the future, and
at more
quite probably
frequent intervals, as our
Group
benefit of the wise
an
to
valuable
types
of
as
by
coun¬
Advisory
Mr. James
W.
Parker of the Detroit Edison Com¬
pany,
improved
Industrial
headed
developmental program continues
produce
work
as
the
sel
more
to
past, and
Eniwetok. We will hold
in
tried
possible with them in
we plan to increase
this cooperation in the future.
In
the past, for example, we have
the
Nev., and we have just
completed still another series at
Vegas,
more
17,000
ship¬
materials
have
than
these
of
medicine,
than 500 research institutions and
is
believe,
cannot very well be concealed. We
a
date,
of
This
toward our mutual objec¬
in
To
ments
fields
the
been
groups
wetok
in
only
concerned with
the production «f electrical power.
groups
everything
weapons
program, we
of naval vessels and
ence
which submitted some
recommendations
very
to
us
from
made
Oak
our
Ridge
isotopes production center to more
industrial
concerns
States and
in
to nearly
ber of users is
Through the
the
interested
in
L.
Philip
Carret, Robert
A.
and
Don
S.
Whitely, mem¬
these products, and it is available
ber of the New
from them upon request.
York
*
the
on
I have tried to
plete
report
a
energy
give
this
on
program
partnership.
atomic
Mr. Carret was
of yours and the
formerlya
taking as it is pos¬
give in the time I have
Such
Co., and Car¬
required in the AEC
program is obviously one of the
major differences between atomic
other industrial
energy and
has been with
oper¬
the firm for
about it,
to my mind, that the
security requirements imposed on
us by tne state of the world today
We
encumbrance.
an
dividual
objectives
our
would
if
did
we
competitors,
our
length of
not
and
the
lead might be much
we
have to do,
our
What
shorter.
security and administer
it as
intelligently as we can—that is, to
do everything possible to protect
real
secrets
and at the
same
encumbrances of
security out of that part of our
program where they serve no real
time
floor broker.
of N. Y. Stock Exch.
worked very
like
would
closely with
to
this
take
us
and I
oppor¬
tunity of expressing our apprecia¬
publicly to Mr. Hoover and
his organization for the superior
manner in which they have car¬
ried out their very heavy respon¬
tion
atomic
the
in
sibilities
energy
New
Stock
He: suc¬
Exchange.
ceeds Richard M. Crooks, who was
elected Chairman May 14.
Mr. Foster is
a
partner of Persh¬
ing & Co. He has been a member
of the Exchange since 1931 and a
Governor for the past four years.
Prior
the
keep
the
the
of
Governors
of
Board
York
of
Vice-Chairman
elected
been
has
Foster
Scott
David
then, is to accept this requirement
our
Mr.
department.
Foster Vice-Chairman
would
have to bother with them—but so
for
research
time in charge
Whitely has been active as an in¬
certainly be farther along the ro.ad
to
the
of
some
And there is no question
ations.
are
& Co. Mr. Don
The degree
security
Gammons
ret,
Philip L. Carret
aspect of the operation,
that is security.
and
of
would
more
&
Gammack
hardly be com¬
plete without mention of at least
one
in
partner
report,
a
Stock
Exchange, to
you as com¬
happy to have
been here
today and to have been
this chance to give you
afforded
a
our atomic energy
it exists here in this
1951.
I hope the
report on atomic energy you
will be presented in a some¬
report
on
program
as
month of June,
next
hear
what
more
to
becoming
member
a
Exchange, Mr. Foster was
associated with the Prudential In¬
the
of
Company of Newark and
the
Stock Exchange
surance
with
then
In 1933
of Foster & Adams.
firm
he
became
&
Co.,
partner of Weicker
a
became
1939
in
which
Pershing & Co.
in Plainfield,
lives
Foster
Mr.
J., where he is a Trustee and
Vice-Chairman of the Community
N.
Chest
Re¬
the
of
Chairman
and
publican Citizens Advisory Com¬
mittee.
-
Foster's
Mr.
Howard
father,
late
also
the
Foster,
Crosby
was
prominent in Exchange activities.
was a Governor for nine years
He
and
member
a
senior
was
Adams.
Foster
Mr.
&
Foster
of
\
-
He
30 years:
for
partner
..
born
was
in
New
City, Nov. 23, 1910. He at¬
tended
the
Wardlaw School
in
York
Plainfield, New Jersey, Hotchkiss
School in Connecticut and Prince¬
University.
ton
whatever
But
world
the
toward
New
competition
with
<of
name
Kerngood & Eising.
1
■
\
_
-V-
•
*
-.
:
WASHINGTON,
C.
D.
—
The
Service has been formed with
fices
engage
of¬
the Colorado Building
in
in
a
to
securities business.
the
thing, and that
will always
is that atomic energy
be very
•
firm
,
be changed to
Tulier, Crary Partner
Communist world, I think we can
much in the picture.
Tuller, Crary & Ferris, 25
Broad
Street, New York City, members
of the New York Stock Exchange,
will
With A. G. Edwards
200 research
admit George S. Cochrane to
partnership on July 1.
(Special to The Financial Chronicle)
steadily increasing.
use of these mate¬
particularly
increasinng
their
New
•
the
1
& Co., 39 Broadway,
York City, members of the
York Stock Exchange, will
Kerngood
Lawrence L. McKenna Investment
hope that this is the way
all be sure of one
Kerngood & Eising
July
turn—whether
I
sincerely
peace—and
economic
On
L. L. McKenna Inv. Service
way
may
To Be
setting.
the events of
encouraging
United
rials great strides are being made
in many different fields of en¬
We
on
of
brochure
institutions abroad, and the num¬
deavor.
mit
pre¬
they will
formation would be of very great aircraft upon bases of fuel
supply. bioiogy, agriculture and scientific go—or toward war, or toward a
value to our competitors.
I can,
Reactor development work — I research, but in industry as well. protracted period of political and
gram
Stock Ex-
New York
possibilities
rather
a
1 have been very
major
definitely on the market
has been now for a
of years.
I don't think
very
today
of the
mem¬
field.
.
.
product—ra¬
dioisotopes—unlike atomic power,
is
bers
52
Co.,
Aubrey
Radioisotopes
Our
getting at the earliest materials
date possible a kind of
unit
because we believe such in¬
are
we
commercial use.
power for
either the development or the pro¬
pro¬
the
up a lot of technical know-how
that will help us immmeasurably
1
given out our rate of progress
we are on
aircraft one, but I am sure in my
&
comprehensive
pared
so,
in the time I have
left, I would like to talk about the
products of this industrial enter¬
prise I have been describing. Our
major product, in the setting in
which we find ourselves today, is,
now,
Marache
Broadway, New York City,
paints
stay about six months or
pick up a few tricks of the purpose.
trade, and then be able to go out
We are proud of the security
should limit our other defense ex¬ right around the corner is that the
and
build
economically feasible
record of the AEC.
To our knowl¬
penditures just because we have need for a new source of com¬
power reactors.
It isn't going to
a
stockpile of atomic weapons— mercial power in this country—
edge we have never had a Fuchs
be as simple as that. There is a
that would
be
a
fatal
kind
of with its vast deposits of coal and
or
a Greenglass
or a Pontecorvo
great deal of technological, engin¬
or
a
Rosenberg in the AEC pro¬
"Maginot-Line" philosophy that, oil and its hydroelectric systems—
eering and design work that needs
amcng
other things, would not is not as great at the moment as to be done in the reactor field be¬ gram, -and—I ' have my - lingers
crossed on this—we hope to keep
take into account the obvious need some of tne other needs that the
fore atomic energy will contribute
for having a means of delivering products
if that way.
Our success is in no
of
atomic energy can
very*much to the overall power
small measure due to the vigilant
these
weapons
to their targets. Help meet.
By this I mean that
supply of this country.
efforts of the FBI which, under
What I do mean to say is that for at the
present time the needs of
Far from being a producer of
'the Atomic Energy Act of
1946
a
relatively small percentage of national defense are paramount,
power
today, atomic energy is that set up the Commission, is in
our
total defense budget we are and in this kind of a setting, I
actually one of the nation's larg¬ charge of investigating the people
getting something that is a very think, it is only natural that even
est
consumers,
and the balance who work for us, and possible
valuable defense ingredient,
in¬ our quest of atomic power is di¬
will be on the debit side for a
violations of the security provi¬
deed.
~
rected
down
military channels.
long time to come.
It has been sions of the Act.
The FBI has
energy is well spent.
By
this I don't mean to imply that we
Granbery,
eliminators, fluorescent lights and
however,
with
agreements
portunity
of
drugs, the tracing of
flows, radiography, and
production of chemicals, static
into
Edison
these
and
available.
Electric
which
for
sterlization
the
are
had
santo
uses
suggested
to
pany and
produced
power
ap¬
been
sible
of
anything
interesting
more
direction it is
proaching the relatively low cost
at
power
the
have
also, as many of you
probably know, presently entering
are
ice Company of Northern Illinois,
the Pacific Gas and Electric Com¬
atomic
,
Admit Three Partners
Some of
pipeline
produce
.
Granbery, Marache to
foods
doubtedly build an atomic power
plant right now, but there is no
bil¬
are
in
amount
$43A
made
they today
not—in bulk quantities.
its
nomical to operate.
represents
be
to
Gas
struction and operations comes to
about $6V2 billion, and the actual
about
fission prod¬
as
were
products
costs
to
they
Sporn, President of the American
District and the AEC for both
difference
Cooperation between the Electric
if
available—which
Laboratory, who was the technical
director, are now back in the
United States ana will probably
building
spent
Ad
which
propriated to both the Manhattan
The
ucts
At present,
working closely with our
Hoc Advisory Committee on
are
Power
recent
most
ficulties which stand in the way
lion.
substances known
wb
tests,
the
conducted
this country, the total amount ap¬
con¬
about two years ago.
37
and Dr. Graves of the Los Alamos
ligated.
fiscal
that must be proof-tested
weapons
(2585)
ST. LOUIS,
409 North
the
of
are
L. B. Morris
Mo.—Alvin Stern is
with A. G. Edwards & Sons,
now
Eighth Street, members
York and Midwest
New
Stock Exchanges.
Opens
Y.—Lawrence
B. Morris is engaging in a securi¬
ties business from offices on the
HYDE PARK, N.
Albany Post Road.
,
utilization in industry, and to this
end
Joins H. O. Peet Staff
have asked the Stanford Re¬
search Institute to survey a crosssection
of
American
determine the
and usefulness
highly radioactive
concerns
to
potential
demand
of
the
vdry
industrial
help
(Special to The Financial
Chronicle)
OMAHA, Neb.—John B. Lepinski
has joined
Peet
the staff of H. O.
& Co., Farnam
Building.
'
E. J. Kompass
Opens
WAPPINGERS FALLS, N. Y—
Edward J. Kompass, Jr. is engag¬
ing
in
a
securities business from
offices here.
33
(2586)
The Commercial and Financial Chronicle
.
.
Thursday, June 21, 1951
.
the electric and gas utilities need
less about the .continuity
earnings and preservation of
dividend coverage than stockhold¬
ers of almost any other industry,"
worry
Mutual Funds
the
By ROBERT R. RICH
firm
for
your
upon request
investment dealer, or
National
from
from
securities
Wellington
has 62.3%
a
of its $173 million of
Wellington's
bonds
DIVIDEND
June
on
compared
months
SHARES
of
12
which
utility
18.9%
23.5%
bonds
government
Blue
de-
were
Wellington management is
opinion that the
stock
market may
well remain in a
broad
trading range for some
time, with both the ceiling and
Mr.
year.
p
TT
that
Calvin
Please do not
5, N. Y.
Keystone's
speculative preferred issues have
been reflected in the price per¬
Keystone Specu¬
months to June
in the six
10.7%
ber, 1950, from realized capital
gains,
market values were
up
21% from those of a year ago;
dividual stocks with
end investment company.
Established 1894
New York
One Wall Street
minor
a
in
the
of
excessive
an
from
price
a
and
risk
timing
However,
stand-
The
''
J
be obtained from
your investment dealer describing1
the company and its shares, includ¬
ing price and terms of offering.
Prospectus
may
delivered to
KNICKERBOCKER SHARES
20 Exchange Place
INC
market, in Mr. Kulp's
actions
would
not
Dow-Jones
erage
June
be
unusual,
industrial
av-
11,
1951,"
he
pointed out, "was 251.56, which is
less
on
than
10
times
the
current
earnings rate of $27 and would be
only 11 times $23 earnings rate
estimated under the present House
Committee tax bilL
The present
annual
$15.50
t
this
Certificates of
INVESTMENT FUNDS
t
investing their capital
IN
BONDS
(Seriu B1-B2-B3-B4)
(Series K1-K2)
CSeries S1-S2-S5-S4)
Prospectus
may
be obtained from
and
tax
assumption."
business
outlook:
moderate
"The
a
jof JBoston
Congress Street
Boston 9, Massachusetts
have
temporary and
affair.
W-hile
sky-
down
come
ural
been
With
business
corporation
earnings
excellent."
MOREAU
Fund's
shares
The
Federal
District
ings
are
sees
that
board
for
Chairman
he
reversal
a
movement
years
sees
of
the
no
up¬
ago.
established
two
Among the major items Mr.
Barringer listed as causing the
befuddlement
controls;
on
chances
were
the
confusion
the re-imposition
conflicting
of
and
opinions
and
peace;
"astonishing sight" of
a
the
nation's
military
plans
dragged out before the gaze of the
whole world, including that na¬
"In
in
reorganization proceedpending, will be
June
22
to
enemies.
such
a
in
1,
1951.
period.
fix
June
28
same
The
this
somewhat
wonderland"
Barringer observed, "a stock
Mr.
mar-
people
many
mated
how
be
to
there
how
esti¬
were
also
earth and
on
much
asked
idea
Rothschild
money
was
supposed to have.
Upon
receiving the man's estimate he
then took pencil and paper and
began to do
and
man
simple example
a
division.
of
He
turned
said, "Would
with
satisfied
the
to
be
you
the result v/hich
happens to be only about three
cents
apiece?"
"Yes."
The.man
The first
said,
then said,
man
shut
Now
three cents.
I happen to be
your
up.
Rothschild."
"Popular
from
Quoted
Economics"
magazine
hypothetical
with
gether
for ready
Copies
are
from
obligation
available without >
Parker Corpora-;
Berkeley Street, Boston;
:
vestor,"
just
five
booklets
new
Be
on
offering
is
!_
money man-.
• <
Newly wed"
business side of
buy, spend and
In-';'.!
are
the
to
4
;
•
"Prudent
issued,
They
agement.
"Advice
•
,
.
FUND'S
PUTNAM
"You'll
cases-*
understanding.
—
the;
marriage; how to
save.
Smarter
When
You're;
60"—some ideas to please and irk J
"How to Handle Shrinking Dol-:
lars"—how to get the most out
income.
"How
Does
Your
Up"—giving
well
how
Family
readers
off
For
All
they
other people.
to
"Die
Modest
income
Stack
of'
idea
an
compared;
!
are
~
Worth"
You're
of
—,
families, as well,
estates, it'
rich people can leave
as
they plan wisely now.
"The
Prudent
,
Investor"
Blue
and
distribution
Ridge Mutual
terms
Fund
are
5
last year.
•.
over-all
;;
taken
were
quality
"
These
folio.
in
decline
limited
moves
"Bl"
values
market
.
the
be
The' Delaware
Fund
executive
believes the market's judgment in
such periods as this may be based
THE
short
considerations.
INDICATES
low
are
utility
selling
basis
and
that
com¬
near
offer
Invest
MyJv
share
per
the
in
on
L.
of
retained
as
by
Pro-'
KEMMERER,
Economics
of
Illinois,
has
Economic
Manhattan
Uni-1
the
been
Consultant',
Research
Asso-
u,
>
} *
the down¬
1933,
FUND
which
has
r
r\
been
>
►
Sharply increased sales of "Bl"
in
shares
recent
months
>
indicate
Putnam Fund Distributors, Inc.
have been
particularly interested in moving
in
conservative1
a
light
and
direction
of existing market
general conditions.
in
50 State
iLg
Street, Boston
»¥»»»»»
levels
appear attractive, ac¬
SHARING
Plans
for
cording to the
200th
issue
of "PROFIT
"Perspective," monthly publica¬ Corporations," a new booklet for
dealer presentation, has just been
tion cf Calvin Bullock.
released by Parker
Not only, "Perspective"
Corporation,
states,
an
the
expansion of the capacity of
utilities
fully
for
recognized
national
by
defense
government
officials, but the ''"necessity for
the industry to apply for higher
rates
should
increased
corporate
47% to
from
taxes
the
be
pro¬
posed
52%, evidently is also ap¬
preciated by various public util¬
ity commissions.
"Under
these
of
distributor
The
vestors.
designed to fill
information
in
his
who
Incorporated
booklet
a
have
has
In¬
been
dealer need for
will help
which
approach
realize
to
him
corporations
only recently begun to
the
advantage
of
profit-
sharing plans.
The
booklet
fications,
circumstances, it tions,
would appear that stockholders of
•
reversed.
yields that
is
-
PUTNAM
recent develop¬
market, the
about
-
I
June
on
ward trend of money rates,
in
of
money
Trustee concludes that
started
available from Put-";
are
versity
that Keystone investors
RECORD
historic
an
fessor
.
ments
very
36c
Commenting
to
to
Fund, J>0 State Street, Bos-i
9, Mass.
DONALD
15, 1951, from 38c paid six months
ago.
■'
"
14, 1951.
have
ton
in the corporate
section,, and to shorten maturities
wherever f practical in the
port¬
in
going
super-human."
'High Income, y"as
Time
nam
come—to
was
Good
a
% Copies
•
improve
to
of
the Mutual Funds Column of June
ket that knew where it
Now
result for Keystone
effective
date
of
the during
an
extraordinarily nonMr. Austrian said.
fused and uncertain period in the
Complete details concerning money market. They also resulted
present litigation in which Blue* in a slightly lower dividend to
Ridge is plaintiff and concerning shareholders from investment in¬
dealer
"The Lure of
Money?" and the "New Laws Per¬
Fund "Bl" to the effectiveness of mitting. Fiduciaries .to Invest
Mutual Funds."
~
an
up-grading
program
started
better capital
the
as
panies currently
Nevertheless,
Fund
tion's
Court
now
on
the
Steps
Richmond, Va., in which the Cen-
rarily
befuddled.
price
June
to
attributes
Trustee
arbitrage is not expected,
stocks of most public
his
in
3.3%
months
in
3.1%
by those investors
who bought the existing stock for
on
BARRINGER
Delaware
declined
six
the
GOVERNMENT
TERM
-
bonds
direction, shortens
this time interval.
Consequently,
heavy initial liquidations of the
the stock market today as tempo¬
told
LONG
its
would
that
have
div¬
a
share for the first
half of 1951, compared with 43c
per share in the same 1950 period.
Di^
stable.
been
reason
of
Board
——————~—
activity and commodity prices remaining at a high level, it is nat-
D.
the
sharply, the broad
commodity price index
wholesale
diplomatic
50
to
rocketing raw material commodity prices have in some cases
of
Keystone Company
current
continues
the earmarks of
that
result
"merger,
Mr. Kulp gave this summary of
the management's
view on the
.attendant upon
The
not
the currept div5.6%
on
the
rather
ward
COMMON STOCKS
at
about
now
on
the
PREFERRED STOCKS
rectors,
asked
has
Participation in
unless
yield of 6.2%
readjustment
Funds
of
is
the
idend of 58c per
ex-
any
-
render,
tral States
idend
Custodian
rate
index
in
listener
had
he
if
so
would have
person
which;
preferred and common stock will Asset value of Keystone Custo¬
is one of the most effective fundbe designated "deferred redemp- < dian Investment Bond Fund "Bl"
tion shares," which, surrendered —which is 50% invested in U. S. publications devoted 10 Keepmg^
shareholders "sold" on the
for redemption during the first six Government issues and 50% in
mutual;
fund idea, discusses in the current'
months, shall be only redeemable corporate
bonds
and
Canadian
issue,
"Teen
Age
Capitalists,";
60
days after the date of sur- Government obligations—declined
likely to drop below $14.
These
dividend rates provide a current
drastic
K, ;y,ston<
dividend
on
stockholders
payments from specu¬
have also in¬
preferreds
"K2" shareholders received
shares
open-end
over¬
gain from the June, 1949, low
was 68%.
creased—with
change for outstanding debentures,
an-
alysis, does not appear to be in
a
dangerously vulnerable posi-'
tion although, he cautioned, at a
point from which ordinary reThe
all
basis the
same
$17.18
Income
stock.
both
the
on
lative
For
point."
Diversification, Supervision am)
Safe-keeping of Investments
of
be approximately $44,606,000. Stock of Blue Ridge Mutual
propor-
stocks held.
common
incur
for the
all
Fund> Inc., will be issued to holdthis
reason,
purchases
have ers of Central States 5%
and
favored good long-range situations 5^% debentures and its 7% prein the belief that solely rearma- ferred stock, as well as to public
ment benefited
issues generally holders of Blue Ridge
common
tion
Knickerbocker
variation
and
Assets
°* Blue Ridge Mutual Fund will
long-term
outlook
is
important at this point than
average
more
now in re-
organization, and the assets of
Blue Ridge Corp. to form an open-
better than
a
i
u
him
evenly divided
His
16, Muss.
value
asset
States Electric Corp.
*
every
increased
share
Per
"Wellington management," he
said, "believes that sound judgment in selecting and holding in-
preponderance of negative fac-
be
same.
lative Preferred Stock Fund "K2."
1,
1951—from $24.34 to $26.95.
Adjusted, for the $1.63 per share
paid to shareholders in Decem¬
a
that
tion, 2U0
Pre™usly approved by the di°rs
.boRl companies, Blue
2 ^e, J?
?
+Ln<r*' ^
sDsorb tne assets 01 botn Ccntrsi
tinue this policy in the absence of
CALVIN BULLOCK
it should
the
He said
great wealth.
Chronicle."
"The
PRICE ADVANCES in
'
p
are
Bullock, One Wall Street,
formance of the
Ridge Corp.
+2
,
his
and
Rothschild
financier
famous
"Well, here is
"Perspective"
of
New York
write
on
«
available without obligation from
Under the proposal which was
substantial reactions this year. He
added that the Fund will
con-
emphasis, "it states,
been placed on the
the utility industry is
have
Copies
/•
i*/r
J?3* '
i^L X B? > ri A
Kulp described the Fund's
policy as aggressive in
adding selected common stocks on
or
•
:
in its growth and ap¬
pears to have ability to surmount
adversity to a degree that has
been
substantially
underesti¬
_
investment
your
investment dealer
higher than last
£
from
dynamic
Ridge Merger Approved
A.
the
floor
fact
!:
At ^peciaZ Meeting
The Proposed merger of Blue
RldSe CorP- into Blue RidSe Mutual Fund> Inc-> was adopted
by the stockholders of both corPorations at a special meeting
held at Wilmington, Del., on
The
the
little
"Too
mated."
largely short term.
as
-
"may
as
holdings
competition
regulation,
notes.
three
Present
may
year
public power, rising interest rates
and other
matters," the review
of cash and U. S. Government
reserves
were
with
earlier.
scribed
of
Prospectus from
of
Moyer Kulp, Vice-President and Executive Director of
the Investment Committee, reported in a statement on the
Fund's investment position and on the business outlook.
The Wellington executive said the
buying program
in the two reactions was
largely in chemicals, oils and
public utilities.
120 BROADWAY, NEW YORK 5. N. Y.
'
in commons,
resources
A.
corporation
research
Fund increased its holdings of common
% in the March and May reactions and now
stocks about 2
a
over
is told of two men
a
train, one of
was
ranting about the
story
traveling
.
in
be due to
"overemphasis on the unfavor¬
able impact of the excess profits
tax, inflation, higher retroactive
normal and surtax rates, problems
The Business Outlook
The
whom
observes.
disfavor
The
stocks have been held marketwise
Prospectus
Sharing the Wealth
of
tax
prospectus
covers
status,
to
top
contribu¬
participation,
executives, to-
employee
benefits
plan quali¬
your
From
investment
deafer
or
PHILADELPHIA
2, PA.
L
Volume 173
Number 5022
.
.
.
The Commercial and Financial Chronicle
(2587)
ciates, investment
tual
investment
than
more
$65
advisor to
companies
million
of
according
to
Hugh
President
of
and
Manhattan
Continued jrom page 5
with
W.
Long,
Observations...
Funds,
Bond
Fund,
Inc.
/
Revolution
Kemmerer,
a
Princeton
graduate, has served as economic
consultant
to
Party.
He
the
Pennsylvania
Republican
been
China.
Chile
of
Co-author
of
and
American People/'
and of "The A.B.C. of the Federal
Reserve," Dr. Kemmerer is also
contributor
sional,
economic
to
and
a
profes¬
The Inside
financial
Story of the Capitalists'
To get his son's education started
journals. He has had considerable
first-hand experience in the man¬
him
agement of investments.
From
to
over
the
him he
Politburo's
learns the
"No.
the
for
causes
final
of
WILLIAM
S.
KNOX
has
been
countries
[appointed Southeastern represen¬
tative of Wellington
Fund, it was
didn't get it.
by W. L. Morgan &
Knox, who has been in
[the investment field for many
years in
Philadelphia and New
York, will make his headquarters
Co.
•at
:
WHAT IS
:
step
in attaining wider
ownership
of
Mutual
is currently being made
public
available
to
Canadians
in,
[
chanics
oped
Plans
by
have
been
Investment
three
Mutual
capi¬
monwealth
Cor¬
Shielded
Investment
monthly deposit with
of
pany
of
through
Fund
the
purchases
over an
provides
an
capital
equal
spacing
price
to
or
vides
markets
the
benefit
Averaging'."
left
with
of
did not
was
the
decide
as
it
at
Dividends
the
trust
now
income.
essence
Plan
during its execution, by the
that
in
the
event
what
seems
"Not in the
and
be
made
would
at
of them
.
were
cost
no
him
to
asks the be¬
ordinary
questionnaire
out
life
group
and
and
the
everybody
our
on
side had faith
The strongest among our enemies
They merely apologized for capitalism. They
that
capitalism,
with
so
we
all
its
faults—and
then
a
could
men
expect—and
forth
so
and
so
on.
a
marvelously effective defense of that great invention of modern
times, individual ownership and the mechanism of the free* mar¬
ket.
To
those
really
believing
in
a
free
"The
America,
Great
Idea"
will serve as an inspiration.
To the doubting Thomases
into whose hands hopefully it may fall, it will prove a revelation.
it
policy
understand that you can
from the National Se¬
curities and Research Corporation
Zuckerman, Smith to
Admit D, L. Gulman
Daniel
mitted
L.
Gutman
will
be
ad¬
to
man,
New
York
New
York
July
City,
the
of
member
Stock
Exchange, on
Mr. Gutman is Manager
1.
of the
firm's investment research
department.
institutions
There
are
on
Branch, Cabell to Admit
Philips, and Ross
RICHMOND, Va.—Branch, Ca¬
inquiries: Prompt,
essential, the initial re-, bell & Co., 814 East Main Street,
answers
^without appointment,
how your prospects can help you
and what to do with those who
:
Richmond
How
handle
to
the
the
New
and
York
Stock
Exchanges, will
admit Henry H. Philips, Jr., and
Frank G. Ross to partnership on
July 1.
reticent.
are
of
members
interview:
Create
-
,
interest, don't antagonize
the prospect, try to.control the in-'
terview, different types of inter¬
views that
such
the most
are
Directors Re-elected
The
convinc¬
Rudolph
Wurlitzer
Com¬
at the meetiqg of the share¬
pany,
offering investment
counsel service, discretionary ac¬
count services (the Mutual Fund
holders of the company held in
Cincinnati, re-elected all directors
for the
as:
interest, dividends, keeps
records, and
decisions
based
makes
the
facts
and
upon
expert
guidance),
income
and
investing
for
inflation.
Offers liak Tea Stock
i
An offering of
120,000 cumula¬
preference shares, 4.20% se¬
tive
following
Jr., W. E. Hutton
of
way
a
man
who
has
been
green
In this
pastures.
Whitehead tells how
produced
How
he
a
an
book
John L. Goodbody
an
outstanding success in selling Mu¬
tual Funds, it is quite likely that
he is going to lead you into some
Mr.
approach
$30,000 sale for him.
a
$10,000 sale on-
John
L. Goodbody, partner in
Goodbody & Co., New York City)
and formerly a member of the
New York Stock
away
of 10 months.
ness
made
the first call is also told in detail..
John
York
his home at
proceeds
will
be
added
to
sold
a
gram,
Exchange, passed
an ill¬
at the age of 63 after
of
In
Hutton,
& Co., Cincin¬
Some Actual Case Histories
When you can follow the path¬
retire
working capital.
They are:
nati; C. R. Wright, R. G. Lockwood, B. G. McCloud and R. C.
Rolfing.
tells how he successfully ex¬
approximately $6,000,000 plains the sales charge, and he
in bank loans previously incurred uses the approach to this
problem
for the financing of current in¬ that
"Services
are
worth
what
ventory requirements. The balance they cost." He also relates how he
to
year.
F. R. Wurlitzer, James M.
He
insurance
group
I
obtain
he
ideas
sponse, calls
they
wiped them out."
his
paid for by In¬
Fund
him.)
prospect. How
before
with
prospects for Mutual
Disillusioned Speculators,
accurate
v
Mr. Hazlitt has painstakingly devoted his unique talents to
■;
have
or
Mutual
How to handle
ing
communism.
reasonable
as
And
com¬
would
say
in which
sense
Hemphill, Noyes Group
taken
.
.
seeing who could admit the
faults-^-that capitalism with all its faults was probably as
good
Prospective subscribers fill out
is
Incredible
too stupid even to know
swoop.
the
partnership in Zucker¬
Smith & Co., 61 Broadway,
busines
good
on
If you want more infor¬
mation
get
contacting
prospects by mail and evaluating'
newspaper advertising.
<.
would compete against each other in
is
estate.
an
grand logical
one
immediately completed
are
for him
he
power
to
people and execu¬
unsophisticated
investors,
some
'reform'
to
of decision, the power of
of 'ownership.' So they took away from
some
.
half-hearted.
mos'
pletion of his Plan, the balance of
that
how
petople, small
regular savers.
and
is
and
Subjects
and
a
that
one
customer
of New York.
program
do
into
the
to
,
business.
selling
classify
tives,
to
.
.
has faith in
were
pro¬
of
subscriber's death before the
purchases
trying
were
tomorrow
collects
"shielded" for the investor's estate
vision
that the
see
who
Apology and Extinction
company
The
of
professional
was taken away; step by
by the State. It was at first not
power of decision that was turned
nighted son, Peter, in another place.
for
the purchase of additional shares,
thus obtaining the effect of com¬
pound
to
Funds.
goods
that they were imitating [communism]."
"But didn't anybody have faith in capitalism?"
of
Cost
may
tries
over
fools
until
This is just a short summary of
the third portion of this well writ¬
experiences
years
(He likes to have a
picture of the individual's
investment
they simply denounced
so
first
pro¬
'Dollar
own
list
prospect
clear
Finally, the best things
con¬
also
and
and
taken
merely the
State. But the
sistent with the fluctuations of the
security
And
own.
resources
was
piecemeal, instead of in
extended period
average
sort of joke.
own prices,
produce, or how much of it, or to hire
or discharge labor at
will, or to set the terms of employment. Grad¬
ually their governments themselves fixed all these things, but
com¬
provided
of Mutual
The
his
many
sale
to him.
acquainted.
private individuals, step by step, the power to set their
as
purchase
Shares.
capitalism
cross-sec¬
a
stocks
common
a
but
the
to
over
for the quar¬
money,
investment |in
tion of
trust
a
weapon
.
over
'ownership'
Plan
pre-determined
amounts
terly
a
from
the
Whitehead,
National, han¬ ten treatise
retired
step that contiol
"the regular
as
tremendous
.
.
individuals
Canada in the fall.
be described
positive virtues of its
.
anticipated that one will
developed for Balanced Mu¬
,may
the
of
Some of the
was that although the
advantage—better arms,
production, more resources;
lacked
turns
Prospecting: The best source of
leads, importance of confidence,
jproper me-ntal attitude. Building
of events
more
off
put
Worthwhile
H.
Mutual Fund Shares.
"But their idea of meeting the
challenge of communism was to
imitate it.
Every reforrfi they adopted left the individual with
less power and the State with more. Step
by step the control of
but it is
A
them
covering
If bourgeois America
possible
they
Louis
Vice-President
enemies could think of saying for capitalism was that it wasn't
Even they didn't seem to think that capitalism had
communism.
[to date, the Plans are only avail¬
able for the first two mentioned,
*
because
Mr.
to
any
.of Canada Ltd., and Balanced Mu¬
tual Fund Of Canada Limited. Up
tual Fund of
course
every
advancement,
beaten
were
of the
with
the'
of
dles many subjects in a clear and
concise manner, and he has taken
preservation
own
technicalities
Not eveary one is
our
poration Limited, Leverage Fund
[be
bourgeois
communism.
Com¬
International
not for their
was
and
would have been considered
devel¬
—
field.
the easiest way to get money out of the
to hint that they might go Communist if they
us
Corporation of New
faith in capitalism. "They started out with little (faith),
began rapidly to lose what they had," says Bolshelov. "Those
who had once embraced the gospel of communism were
willing to
die for it; but nobody was willing to die for
capitalism. That
Distributors
Funds
other
to
something that should be done to¬
day. The finaie of the sale, and
funds, there is a sound
presentation of selling ideas which
have
proven
successful
in
the
and
Limited, primary sales agents for
[the
Th£
ertia
Securities
various
of real
all
of Shielded Investment Plans.
These
began
technical
more
they
[walks of life through the medi¬
um
happen?
National
the best lesson of
all, in my judg¬
ment, is where the prospect gives
Investment Funds."
In addition him a small order
(more or less to
to devoting considerable attention
get it over with) but he is not
to information
regarding the me¬ satisfied With such a result and he
So they began to believe themselves that their chief
essence
Capitalists
forward
'
1 Funds,
to
uses
firmness and polite
persistence in overcoming thei in¬
Should Know About Mutual
man
felt, it could jolly well pay for it! And
they used most of the other American funds anyway, to finance
Socialist programs—in other words, to move in the direction of
communism!";-.
"
:
'
/
*
major
a
that
was
arming against
But the
to be
expect
you
but again as a favor to the Disunited States!
wanted them to arm, they
*
HOPED
for
reason
Mr.
Atlanta.
found
Disunited States
announced
;
would
privileged to how he
York, entitled "What Every Sales¬
talism.
"What
the
of
and Research
Bolshelov.
overthrow
been
book which has been
new
ficers
Overthrow
ambitious
one
a
just
compiled and written by the of¬
right, Dictator Stalenin turns
2,"
have
read
shooting wars between about 150 A.M. (After Marx) and the final
triumph of communism in 184 A.M. The Modern History era,
comprising the interval since the complete and final triumph of
communism, is now just a couple of years less than a century old.
"Economic
History of the
frequent
Salesmen and Mutual Funds
I
B.M., the year in which a book appeared by "this"
Smith, whose title has become forgotten. In Wonworld
the Dark Ages is represented as the whole
period from the birth
of capitalism until its final overthrow in the series of cold and
advisory commissions
governments
By JOHN DUTTON
Dark
42
at
Adam
member
a
(which,
"real"
others
the
to
has
of financial
to
the
and
Securities Salesman's Corner
of course, was really a counterrevolution).
Ages began with the birth of capitalism. This
period was dated by some at 95 B.M. (Before Marx) which was
the year of the birth of a bourgeois named Adam
Smith; and by
The
Dr.
Railroad
39
assets,
Diversified
Inc.,
mu¬
continuous investment pro¬
and
the
conversation
.
Melady
John
John
the
Melady, senior partner in
Melady & Co., and one of
oldest
members
of
the
New
Produce
Exchange, died at
the age of 80.
with
C«
exceeding the prospect is carried on in dia¬
With Eaton & Howard
He illustrates the impor¬
Dec. 31, 1961) of National Tea Co., $315,000,000 were recorded, while logue.
(Special to The Financial Chronicle)
net
income
for
the
vestment
period tance of first making sure that his
Distributors
Limited was made on June 19 by a nation¬
amounted to $5,214,563.
BOSTON, Mass. — Joseph E.
prospect understands what he can
wide investment banking
are the beneficiaries thus
group
provid¬
do for himself by setting up such Eaton is with Eaton & Howard,
headed
by
Hemphill, Noyes,
ing that company with the neces¬
a program, and then he illustrates
Incorporated, 24 Federal Street.
With Courts & Co.
Graham, Parsons & Co. The
vestment Distributors Limited. In¬
(convertible
ries,
on
before
or
1950,
total
sales
.
sary
funds to carry out their ob¬
ligations
medical
to
the
subscriber.
examination
is
six
months.
No
years
charge
is
made for this.
THE
of "Investment
Companies" is just
off
it
by
Arthur
author.
ment
press,
was
new
and
pany
share,
the
shares
common
books
are
stock
*
was over¬
for each
closed.
convertible
the
of
at the rate of four
shares
com¬
common
preference share.
Wiesenberger,
companies
are
ranging from 105 to 100, and
vision is also made for
the
described,
compared, with
companying statistical data.
ac¬
a
pro¬
(Special to The Financial Chronicle)
LAGRANGE,
GA.—Warren
P.
National
ates
629
Tea
viously
with
Salomon
Bros.
the
&
Hutzler.
self-service
Western Markets in
To
LOS
ANGELES
SPOKANE
•
DENVER
SALT LAKE CITY
•
Michael M. Van Beuren
Michael M. Van Beuren, retired
York stock broker, died at
oper¬
stores
in
present financing to retire all
its
FOR BROKERS AND DEALERS
J. A. HOGLE & CO.
New
Co., which
eight middle and northwest States,
plans to utilize he proceeds from
of
Prompt Wire Service
Humphreys is now with Courts &
Co., Colonial Hotel. He was pre¬
purchase
fund.
announced
Leading American invest¬
classified and
The
into
per
Stock may be redeemed at prices
ELEVENTH Annual Edition
the
subscribed
needed
and the maximum
agd is 50
and
No
stock,
priced at $101
outstanding 4*4% and 3.3%
cumulative
preferred stock and
his home at the age of 79.
ESTABLISHED
Membeis
and
Eldon H. Keller
Eldon
H.
Keller,
partner
May 19.
other
50 BROADWAY
in
McDonald & Co.,- passed away on
Tel.:
WHitehall 3-6700
New
1915
York Stock
Exchange
Principal Exchanges
NEW YORK 4,
N. Y.
Teletype NY 1-1856
.
40
(2588)
The Commercial and Financial Chronicle
Continued from page 22
judging
factor,
such
analysis
this
of
for tne current period
ments
tnree
preceding
will always be justified in
nances
a
•
failure
of
traditional
spond
municioal
credit
analysis to develop criteria
for appraising the economic back¬
ground
of a
community which
have
stood
the
for
search
test
of
judgment,
lusion.
be
a
and
tion:
What
the
are
piospeets
for
ing municipal creons, tne impli¬
cations of
not
or
tne
com-
However, the fact should
recognized
tnat
communities
be studied whh end in view
may
of
appraising
their
Frequently, this is little
catalogue of
a
resources.
than
more
the
principal fea¬
tures.
As a practical
matter, the
analyst can support his conclusion
by projecting the obligations of a
community against the itemiza¬
tion
of
resources.
criteria
develop
debt burden
example,
below 5%
those
is
spective of
important
irre¬
The
nature of the
fact that judg¬
ment regarding the economic
background
hinge upon
as
cannot
be
single
a
index
an
made
is
to
such
measure
number
not
fatal defect.
Communities
studied
appraised
and
can
a
In
the
quality,
be
respect
of
credit
to
considerable amount of
emphasis is placed upon the debta
payment
Beyond
of
record
a
debt
ingly
the
of
important in
rather
Changes
judging
tend
slowly
in
municipal
better
fore, of past performance is
indication
which
occur
or
The record, there¬
worse.
sound
mu¬
to
finances, whether for the
for the
issuer.
doubt, the historical fact
management is exceed¬
nicipals.
of
the
a very
margin
protects the holder of the
security from misfortune.
Whether
past
to
the
of
some
'owing to
its
the
of
usefulness
acceleration
an
in
the
rate of change that may overtake
given community remains to be
Developments
since
the
a
seen.
second
world
war
suggest
that
communities may change both for
the better or for the worse far
more
fore
rapidly than anyone hereto¬
thought possible.
The tre¬
mendous growth in population as
well as the expansion of produc¬
tion
attending
resulted
in
the
have
war
many
unforeseen
1940.
Maybe
tify
these
,
cipal
more
of
source
values
assessed
credit
less
or
rationale
quite
clear.
the
upon
the prin¬
As¬
revenues.
precise
value
for
reasons
has
been
the
ffom
statutory
ratios
mum
value).
ihe
of
the
debt
Even to this
municipal
"debt
day, there
credits
judged
the
basis
are many
whose
almost
of
the
quality
entirely
make certain that the facts
and
Revenues
Interest
corre¬
I
State
of
and
7
"
the
that
figure.
limit
assessed
for
amount
on
great
a
and
va¬
from
tions
other than the
sources
Also, the complica¬
modern
of
this
it
interest
annual
have
declined.
less
1932
than
almost
1948
2,990
task
2,354
complicated
15th century
or
col¬
a
paintings,
facing the
analyst who attempts to
the burden of
relating
it
municipal debt by
a
the
to
measure
assessed
value
exceedingly troublesome. For
example, in the literature there is
are
the
that
debt
values
discussion
are
"adjust¬
before
necessary
of
been
level
the
Millions)
1,965
1,656
full
faith
are
of
63
369
685
1
1,236
tainly, if the crucial test were ap¬
206
115
39
9
835
819
322
58
16
2
421
plied, namely, the debt to assessed
valuation
ratio, these hybrids
712
476
42
would almost always tip the scales
•
4
508
352
224
89
1941
105
in
20
243
tations.
27
584
ful
49
919
51
739
for appraising
these
hybrid securities.
So, it is neces¬
the direction of
1,230
549
70
1940
1,490
429
101
1939—_
1,099
242
64
3
1938
1,229
122
150
3
41
913
sary to
1937
984
194
N.A.
9
67
714
429
N.A.
10
104
613
__
__
study each case
Securities
divisions
385
698
certain
there
and
debt
are
market
attempts
figure
"Does
so
not
that
not
Source:
include
"The
Two very
Bond
short-term
issues.
important changes in
liferation in types and varieties
municipal
securities.
There
discussions
lay
of
considerable
quality may be discerned
by study of Table 2.
In the first
place, the volume of offerings for
sale has increased tremendously,
two
years
and
a
in
record
garding
to
develop
criteria
for
substitute
painstaking
financial
for
a
study
position
The increase
1950.
amount
judging 'the current position, but
they have not been very success¬
ful.
Mostly the attempts to find
total of $3.7
in
billion
volume
by itself has thrown a tremendous
burden upon the analyst who is
There
some
$1
the
obligor.
been
serious
As
in these obli¬
weaknesses
would be called into question.
appraising
credit
stress upon the importance of the
current financial position of the
have
un¬
whole
the
municipal finance reveal
analyst in
seems
obliged
form
to
judgments
re-
greatly enlarged dollar
a
of securities.
Accompanying
the
tremendous
expansion in the volume of municipal offerings is a second development which is troublesome
for the analyst.
Beginning in the
de¬
late
1930s,
of
in
rate
in
has
but
the
been
an
at
an
postwar
increasing
years,
unprecedented
there
pro-
be
to
no
limit
to
the
a
in-
corn-
Study
of
available
suggests
that
the
definition of
a
the
traditional
full faith and credit
continue to appear in
large volume, but their relative
importance
is
declining.
Secondly, there is a growing amount
of securities which involve the
financing of projects that are definitely quasi-public in character,
municipal
ties
are
any
pledge of
of
a
in
minor
revenue
nowise
the
securi-
supported
general
political
by
credit
subdivision,
Finally, a very important segment
of the municipal flotation now is
more
or
less
in
is
our
no
eco¬
doubt
hybrids would
obligation
These
to experience
turn
mind that municipal credits
The
performance of these
many
for the purposes at hand,
the first place, the securities
to
in my
disclosed.
be
not
we were
flotations
be classified into three broad
conform
will
unfavorable
an
statistical
groups
In
gations
However, if
investment
parable period of innovation.
that
traditional
in
element
sub¬
an
nomic fortunes, there
the
at the $3 billion level
analysis
constitute
now
ventiveness of issuers in devising
new financing arrangements.
Nor
does a search of the annals of
of
more
to the data
loses much of its usefulness.
character
political
task
that a criterion
applied only after
be
elaborate adjustments
hybrid
of
minor
by
of
may
be
issued
own
-
municipal financing which
are
having a profound effect upon the
billion annually.
By
offerings increased to
than $2 billion, followed by
It should
sup¬
general
be
long as prosperous times continue,
1947,
the
its
on
structure of municipal credit.
Buyer."
of about
was
by
can
,
1
-
benchmarks
that
developed
N.A.
—_
flo¬
excessive
Furthermore, it is doubt¬
merits.
1,156
1936——
Cer¬
193
44
the
help.
no
1
„
—
1,128
between
or
5
„
46
576
and
little
1933
by
The
applicable, to
credit obligations
1
.**
756
have
serv¬
criteria
traditional
657
total.
issuers'
3
for debt
that pledge.
upon
647
,
261
ob¬
the
$2,329
rests
131
which
no
$2
real dependence
ice
' 499
property tax would be eliminated
and
All Other
187
from
is
Relief
'105
data
tailed
no
,
Veterans' Aid
$643
For
many years the volume of
flotations was in the neighborhopd
There
of the issuer, but it is obvious that
221
adjusting
taking into
an¬
the tremendous flood of
hybrid securities now appearing
upon the market.
These securities
alyst is
usually , are accompanied by a
pledge of the full faith and credit
II
Municipal Bond Issues
1943
falling
to
,
the
difficult of all to
5
for
obligations.
revenue
Most
52
primarily
the
with
N.A.
schemes
respect
well established.
are
Unfortunately, the same cannot be
said for many projects financed
N.A.
assessments
portion
ported
thoroughly dis-
are
with
practices
146
differences
the
some
ing
depreciation
403
values
refine
emphasize
enterprise the criteria for apprais¬
1,196
Various
Also,
the
The
question of accounting for depre¬
ciation.
In the field of private
1,175
proposed
of
on
Then there is the
issue.
revenue
1934
or
the
the
equity capital in a
owned
corporation.
privately
depart from "true
to
for
to
Something equivalent to this mar¬
gin is needed in the municipal
1935
may
fact
rapidly rising
prices.
issues
trends which
quieting.
1942
long been recognized.
especially so during pe¬
is
riods
complacency
ernment
Revenue
protection
equivalent
$599
"eei
1945__
values" has
This
over
20 years, that is no
or
for
reason
improvement
part of the security analyst.
debt
bondholder
be inter¬
that assessed
figure
The
tend
of
two prob¬
are
1,204
1946
1944
he is comnletely baffled.
Some of the problems
less steady
statistics regarding new offerings
of long-term State and local gov-
$121
1947
lection of
claims upon this revenue,
Although some of the compre-
(Amounts in
1949
land
industrial establishment
were
credit quality of securities issued
by minor political
subdivisions
suggest that there has been more
Refunding
equipment
successfully.
When,
however, he is confronted with the
a
there
sure,
many
TABLE
$3,694
2,995
appraising
be
To
year,
hensive statistics bearing upon the
"■Total Issues
of
stockholders'
of Commerce.
outstanding, by 1949 they almost
equalled the total debt in that
1950
of
of
1949,"
the
New State and
scope
appraise credit qual¬
of these concerns
magin
in
the
of
half
the
the analyst in his
vex
840
8,852
1950" and "Governmental Revenue
revenues
the
revenue
first
Moreover, revenues
increased tremendously,
in
by
the
are
Deserving of
mention, however,
endeavors to
The
20 years ago.
and
farm
beyond
the
the past 15
Whereas
the
prob¬
analyzing mu¬
securities would
revenue
far
ity.
other
was
with
issued
in
nicipal
lems which
life
economic
involved
707
amount, actually the debt
load is smaller than it
been devel¬
have
connection
of securities
in
604
in dollar
were
the tests which
11,390
pay-
In
obligations
analyzing credits
dependent solely upon revenues
from special projects.
Generally,
12,384
or
greatly increased the diffi¬
of valuing property.
In a
rural community, Tor example, a
locally selected assessor probably
appraise
516
words, although the debt is larger
have
544
over
above
credit
not useful in
are
this discussion.
558
smaller
was
climbed
culty
could
15,298
late
as
Furthermore,
period
ments
$578
13,242
1932, and it was not until
1932
to
in
Census, Department
1948 the total debt
than in
and
faith
extend
Debt
on
17,826
19,576
Debt
You will note that even
as
in their discussions of
full
16,589
-
"Governmental
the
of
1949
of services has forced the
political subdivisions to seek in¬
come
Source:
other
riety
property tax.
1932——
full
the
Criteria which the writers have
19,690
———
resulted
to
citizens
in
1945—
1942
Bureau
Revenues
$19,731
16,825
15,922
——
varieties of
supplanting
A full treatment of all the
18,702
1.946
But the fact remains
types and
are
developed
lems
Int. Payments
General
$20,875
less
bonds.
1932-1049
Debt
-
other
an¬
or
faith and credit obligations.
(Amounts in Millions)
-
1947-.——
that
for
more
public service enterprises
only ones appropriate for
Local
With
obligations,
criteria
still
appropriate.
issues
credit
and
are
analysis
Payments
YEARS
alysis
oped
Annual
nu¬
so-called
ratio."
In
applying the
however, it is important to
1949.
Gross
attempts
measure
was
burden,.
test,
debt
on
of
increase
The
be
with
has
attempts
can
Accordingly, the
,non
Governments
there
in the
Furthermore, demands
part
credit
can
are
however,
ratio of debt to assessed value
-
lected years over the period 1932-
fi-
current
SELECTED
of
the ability of political subdivisions
to create debt by imposing maxi¬
tax¬
accepted
of
study
Debt,
subdivisions
this
part
vious,
the
ernment debt outstanding for se-
in
TABLE
The
power
to create debt,
which overlap, underlie,
(in
areas
decline
coterminous
are
payer to contribute to the support
upon
the
upon
•
criterion
a
political
which
satisfactory index of
ability of each individual
an
useful
are
Moreover, the stress
cases.
assume some
great increase
a
of
ably
of government.
tradi,io™>
still
of
,
Usually
the first place,
of
many of
or
this
In
measures
reason¬
very
^he amount of State and local gov-
these theories
as
as
a
a
torical table showing the trend in
burden
certain
re-
will
general way the
extent of the improvement which
has taken place.
Here is an his-
•
accepted
economic resources and
brief
A
statistics
few
a
the
background
rationaliza¬
quality has declined.
merous.
to
were
r?Tt
of debt
of
the history of his debt
issuer and
relationship between debt to
the
as
economic
the
easier.
become
indicate in
fulness; for example, the study of
Over the years the usefulness of
the
prices.
is
use-
1948
Viewed in its
general property tax
sessed
the
municipal debt with
relied
pat-
unrelated to the facts. '
account
measure
absolutely
broad
analysis have general
of
tern
obligations,
the
in
elements
1949
measured
this
the
Some
credit
and
to debt service.
the most part,
For
assessed
for'
ratios
faith
tend to become very fine-spun and
the traditional analysis of munici¬
pal credits. The burden has been
comparing
traditional
"
preted.
municipal credits
with a good
history may take a
turn for the worse
very rapidly.
The measure of the debt burden
has always been viewed as the
single most important feature in
some
Municipalities
the
to
faith
the
that
extent
security
on
respect to the issues that fit into
the
well-established
pattern
of
full
the
To
discussed in the literature devoted
data
far-reaching.
municipal
apparent
proportion of total
devoted
accelerate,
context,
For
say
percentages.
standard
a
ments"
thfe assessed value.
is
these
are
credits generally have improved
in quality it would appear that the
task of analyzing these securities
that the
testing credit quality
it
for
kind of "proper" tax rates as well
the tempo of change will subside.
On
the
other
hand, should it
historical
of past debts.
repayment
Thus,
criteria
Recent Changes in Municipal
Financing
provision
adequate
tions have been developed to jus¬
protracted
by
not
to
Furthermore,
developments since
amount of the
the
have
criterion
debt-paying ability is going
lose
if
bad.
with
discussions
standard
with
are,
suspect
living, number
as
economic entities.
criteria
10%
least,
the
obligation.
value ratios.
definitely good and
are
above
as
feature
appraising
is argued that
it
revenues
This
for
in terms of standard
debt to assessed
analysis has placed
pality issuing securities is one of
its most important contributions.
municipal
on
creait analysis have endeavored to
nomic
upon the eco¬
background of the munici¬
of
making
for
To analysts engaged in apprais¬
flotations
has
these rationalizations
The emphasis which traditional
a
and
view
writers
y,
the foreseeable future?
whether
this
are
years
full
text
that eiement.
upon
community to manage the
debt it will have outstanding over
or
analysis of municipal securities are applicable primarily to
The
a
of t.*e issuer,
but their quality
uepends only to a limiied extent
economic resources, then the debt
de-'
a
be
index
carry,
Finany, all of hxese factors of
analysis point to the single ques-
in
ratio is of dubious value.
measure
and
snare
to
ceased
satisfactory
reasonably
wicn universal applicability is, in
my
have
assessments
Tile
time.
standard
a
the
to
usually
mine
assumptions.
If
study discloses that the general
property tax does not furnish the
principal source of revenue or that
development within
community
accounts
for
the
securities
These
compared, the analyst may deter-
Municipal Bonds
economic
Thursday, June 21,-1951
.
pledge of the full faith and credit
munity is living within its means
Of
.
the appraisal of municipal credits,
receipts
of
If financial state-
study.
a
two
Of
significance
disbuisemenis is essential
and
Factors in Evaluation
the
Tne
>
.
hybrid in character.
be satisfactory in
but there would
some unfortunate ex¬
cases,
surely be
ceptions.
From the viewpoint of
banks, at least, the statistics sug¬
gest
the
for
need
of
exercise
utmost
caution
and
discrimination
in the selection of the most favor¬
ably situated issues for investment
purposes.
The
new
that
comprehensive statistics on
may suggest to you
the problems attending the
offerings
increase
in
volume
liferation
in
securities
are
That,
To
the
and
pro¬
of
municipal
largely
academic.
types
however, is not the case.
a specific illustration,
furnish
studies of municipal securities in
Florida banks indicate that nearly
40%
of
the total
volume
involve
Number 5022
Volume 173
credits which
are
.
.
The Commercial and Financial Chronicle
.
distinctly hybrid
in character.
the road
bridge bonds
Continued
from
This would include
iced
and
by
State
The State of Trade and
school
chances
new
tations.
much
as
it is doubtful that
as
third of the Florida
a
is
appropriate
there is
of
a
in
bonds
revenue
banks.
respect
is¬
such
to
Plan
the criteria for judging the
sues,
will
of full faith and credit
obligations are entirely inappro¬
bonds
it
quality.
attention
has
credit
of
regard
a
municipal
of
the
flation.
to
the
single question: Will the issue
pay
out
Ex¬
upon
according
answer
schedule?
to
perts seldom differ regarding the
issues
with
ion center
This
lem
steel
is
prospect
The
investment.
about
concerned
are
for
the time
only
concentrate
on
top
quality issues to maintain a sound
portfolio.
Furthermore, in pros¬
perous times there is little spread
in yield between the very best
and the marginal quality issues.
next
comes
maybe 15 cents or more an hour.
Iron and
American
beginning
week
the
cover
This
week's
ingots
103.6%
Steel Institute
announced this
traditional
The
June
tens
a
1951,
18,
based
for
on
the
To be sure,
general char¬
acter have been devised for test¬
the
of
the
«.
was
•
'
1
criteria
of
have been unsuccessful..
:
mu¬
Canada the past week,
totaled
flotations
credit
substantial
bonds
are
have
amount
finance
to
marketed
of
For
in
in
there
is
a
apparently growing
hybrid issues.
These
the
only to
a
feature.
credit
status
There is
hybrid issues.
individual analysis.'
year
-
*
' ^
interest increased moderately in many
into
to
output
was
195,643.
to
ended
Dun
&
and
June
14
South and Pacific Coast
Northwest and Southwest +2
to +4; East +3 to +7;
i.
ordering throughout the
nation increased slightly
earlier, although unit volume was somewhat
Canadian output in the week totaled
industrial
Bradstreet, Inc.
units
contributory.
the
Department store sales on a country-wide basis, as taken from,
Federal Reserve Board's index for the week ended June 9,
1951, increased 3% from the like period
of last year.
the Past Week
failures
172 in
declined
to
130
Retail
in
the price war
preceding week, according
While casualties were down modern
involving liabilities of $5,000 or more decreased to
preceding week-and were less numerous than
r
concerns
decline also took place among
succumbed in this ^ize groups A
small casualties, those having liabil¬
to a bogging down of
and unfavorable weather.
index, department
period of June 9,
1951, advanced 15% from the like period of last year. In the pre- ceding week an increase of 16% (revised) was registered above
the similar week of 1950. For the four weeks ended June 9, 1951.,
an increase of 10% was recorded above that of a year ago, and for
i
the year to date, volume advanced 11% from the like period of f
last year.
>1
"\ ;
According to the Federal Reserve Board.'s
sales in New York City for the'weekly
:
*^103irom "125 in the
when" 139
of 10%.
dropped to an estimated
store
they fell 48% below the prewar total of 249 in the similar week
year ago
trade in New York last week
gain of only 5% above the 1950 period, due
the
the
of 1939.
a
This com¬
pared with an increase of 5% in the previous week, and an increase
of 3% for the four weeks ended June 9, 1951. For the year to date
ately from 1950 and 1949 when 178 and 196 occurred respectively,
Failures
below that for last
While an increase in military commitments was partially
responsible for the order-rise from the prior week, an increased
buyer response to the recently opened Fall apparel shows was also
year.
1950 week.
from
these per¬
during the past week with over-all dollar volume of orders
moderately above the level for the corresponding week a year
units
149,119
period ended on Wednesday
1% to 5% above a year ago.
—2.
Wholesale
the
*
~
New England 0
week.
Commercial
week
requires
one
as consumer
\ '
centages:
-
Each
promotions of summer styles spurred apparel buy¬
department store sales registered an advance
this
analyst Jn dealing,, with, these
alone, total
Business Failures Drop
tion for the problems confronting
the
1950
a
simple solu¬
no
last
the corresponding
like
depends
upon
in the period ended on Wednesday
a
Regional estimates varied from levels of a year ago by
32,301 trucks built in the United States and a total of 6,650
and 2,820 trucks built in Canada, against 6,776 cars and 2,592
trucks the previous week and 6,666 cars and 2,395 trucks in the
and
volume
of
limited extent
ing last week,
and
jpledge of the full faith and credit
Of the issuer, but as a practical
matter
program
week, against 45,600 bales
sections.
cars
large
involve
States
con¬
negotiations
of cotton.
.
Intensive
Total output for the current week was made up of 116,818 cars
credit obligations.
Finally,
aircraft
markets,
peace
crop
Slightly Higher for Week and Year
rose
Total retail dollar volume in the
its
spot
of
responsible for the stimulated retail selling in that center, there
no noticeable effects of this elsewhere.
-
according to "Ward's Automotive Reports,"
with the previous week's total
getting
in
1950, states Dun & Bradstreet, Inc., in its latest summary of trade.
the current "price war" in New York was deemed partly
compared
in
years.
.were
9,470 units compared with 9,368 units a week ago and 9,061
analysis of flotations by private
corporations than full faith and
^
efforts
United
the
of
week
with the
common
to
tons
While
against last week's revised total of 142,127 units, and in the like
which
quasi-public in character. The
of these securities has
more
due
for do¬
to a
sugars
250,000
point slightly above the level of a week ago with
total dollar sales slightly above those for the similar period in
recorded by
were
quota
large 1951 world
-pi to +5; Midwest +3 to —1; and
a
.appraisal
much
spending
of last week to
an
assembly stage.
revenue
projects
slowness
of last week was estimated to be from
levels
required to meet public
services, many
for new
communities
included
totaling 38,700 tales for the
Consumer
.
struggle to find the cap¬
demands
influences
Preventing even higher production last week, this agency said,
was labor trouble at Hudson which held assembly to only a hand¬
ful of units.
In addition, Kaiser-Frazer output was below normal
the
of which can be judged
bv the traditional standards.
ital funds
of
increased
Chrysler, which returned to fullscale operations following the previous week's labor disruptions,
and by Studebaker, whose output had been held down last week
by shortages of materials.
quality
In the
supply
been
tons, the latter comparing with total distribution
last year.
Lard continued to work lower in
Trade Volume Turns
(revised) units.
Increases
considerable amount of full
and
units,
158,589
of 151,495
types and varieties of issues has
increased tremendously.
There is
faith
represented
has
Bahia
Department' of
yield will be at least 16,000,000 bales.
vehicle production in the United States and
Combined motor
financing have seriously
complicated the appraisal of
municipal
credit quality.
The
volume of offerings as well as the
a
total
1951
the
preceding week, and 176,900 in the corresponding week a yea^
ago.
Prospects for this year's crop continued good despite dryness
reported in some parts of the belt. Recent advices on plantings
of the new crop give indications that acreage this year will equal,
if not exceed the government's goal of 28,536,000, and that the 1951
Auto Output Shows Further Improvement
t
were
the
5,170 cars, or 0.6% above the comparable period of 1949.
nicipal
still
tons
in
week
receipts dropped to the lowest level in three
smaller,
13,029,000 kwh. above that of the pre¬
„
in
developments
Recent
futures
Export sales of cotton were light in volume. Inquiries were
and reported sales in the 10 spot markets were somewhat
increase of 17,285 cars, or
above the corresponding week in 1950 and an increase of
2.2%
attempts : to
establish
universal applicability
■
fewer
"v
cars,
week's
The
while
last
Late
announced that the
.
speaking,
Generally
issuer.
however,
813,326
shipment.
for Korea and prospects for a
according to the Association of American
Railroads, representing an increase of 68,682 cars, or 9.2% above
the preceding holiday week.
I
well as for appraising
current financial position of
^the
<
electric:
the
Carloadings Rise 9.2% in Latest Week
the debt, as
steady
was
featured by the purchase of 80,000 bags of
consumers
Bearish
Loadings of revenue freight for the week ended June 9, 1951,
spaying ability and the burden of
.
,
tinued dullness in cotton goods, further talk
output reported for the corresponding period two years ago.
totaled
<
.
Although spot cotton pries held at or near ceiling levels, the
trend in futures during the past week continued downward.
a
ing the economic background of
the issuer,
the record of debt-
*
distributed by
was
8,273,000
cattle
735,017,000 kwh.. or 12.2% above the total output for
the week ended June 17, 1950, and 1,374,091.000 kwh. in excess of
obligations.
criteria
yearsago.
,
light trading, reflecting further sharp recessions in vegetable oils.
In the Chicago livestock market, steers were steady to firmer as
vious week,
credit
■
energy
•.
municipal credit analysis pertain
almost entirely to full faith and
some
market
cocoa
total of 8.250,000
Makes Further Gains in Latest Week
current total
The
actual
July-August
mestic
light and power industry for the week ended June 16, 1951, was
estimated at 6,746,691,COO kwh., according to the Edison Electric
of
a
_
Agriculture
industry'^
A year ago it stood at
month age.
electrical
of
amount
Institute.
discussions
Commodity Price Index Touches Lowest Level
The market
week
companies having 93% of the steel-
operating rate is equivalent to 2,063,000 tons of
castings for the entire industry, compared to
and
2,071.000
or
The
fatally lacking in quality.
4
reserves to carry it for several
The decline in oats reflected favorable crop news and the
The
of Jan. 1, unchanged for the third consecutive
Electric Output
not
are
>,
the
Domestic
flour
bookings remained small and mostly for
nearby requirements despite minor price reductions at mid-week.
101.2% of the old capacity and amounted to 1,929,100 tons.
which
assembling the facts
marginal issues
in
insure that
of
ago.
year
of
steel
the difference is so small
scarcely is sufficient to
the added expenses involved
general use,
total
price per pound
and its chief function is to show the
sum
Chicago Board of Trade increased last week to 172,119,000 bushels.
represented a daily average of 28,700.000 bushels, as against
26,600,000 the previous week, and. 37,400,000 in the like week a
week.
it
the
This
In fact,
that
represents
slightly easier in sympathy with heaviness in other commodities.
increased capacity
need
in
was
•.
large stock of Canadian oats piled up in Chicago warehouses
amounting to around 7,000,000 bushels.
Trade volume on the
in¬
making capacity fbr the entire industry will be 103.2% of capacity
Banks
while the high
2,
good stands with ample moisture
Age."
The
the marginal cases.
on
bank
Jan.
earlier, and with 265.46 at this date
weeks.
reflected
increasing volume of grievances
officials
Union
rates.
that the operating rate cf steel
greatly simplifies the prob¬
of
of their inventories.
up
ask for higher wages,
Iron
best prospects or
Differences of opin¬
on
Leading grain markets continued irregular and unsettled with
wheat and rye up slightly for the week while corn and oats de¬
clined.
What prices staged a good recovery at mid-week but
turned easier as demand slackened in late trading.
Export buy¬
ing of wheat was only moderate but a heavy export business is
looked for during the 1951-1952 crop year.
Corn showed strength
at times but the general trend was lower.
Prospects for the new
corn crop continued excellent with the
grain generally up to very
the
the poorest.
index
foods
week
available to them
November, Phil Murray is going
Steel
industry won't be able to grant it without a price increase.
Be¬
fore the dust settles, the case may follow an old, familiar pattern
of:
(1) demand, (2) refusal, (3) fact-finding board, (4) strike,
and (5) settlement with subsequent price relief, concludes "The
credit
$6.93
was
Since Dec. 22, 1950
.-
When
to
year
Continuing its downward movement, the daily wholesale
commodity price index, compiled by Dun & Bradstreet, Inc., fell
to 316.47 on June 11, the lowest since Dec. 22 when it was 315.86.
,.The index closed at 316.96 on June 12, comparing with 315.58 a
production cutbacks are inevitable.
incentive
over
the
to
amount
in the discussion of increasing
overlooked
in worker slow-downs and in an
quality.
with
Controlled Materials
situation
Steel labor is becoming a bit restive with restlessness
the
upon
$7.07, from $7.08 the week before, to mark
16 when it stood at $7.04.
However, it still
year-ago level of $5.94, amounting to 19.0%.
Feb. 20.
Wholesale
them of a,supply, but they
that the
comes
building
that further
discussion
centered
determination
Judgment
quality
hinges
this
In
the
;
general trend of food prices at the wholesale level.
to be plenty skimpy, this trade weekly points out.
toward
ress
questions cluster about three
principal topics: (1) Legal status;
(2) price considerations; (3) cred¬
to
the
over
for
on
of 31
living hand-to-mouth and have not been able to make any prog¬
for
investment purposes the pertinent
rise
The
capacity and its effect on the supply picture is the situation in
scrap.
While scrap is moving freely today, the mills are virtually
then: In the evalua¬
municipal
of
It may assure
the time
before
is going
Summary and Conclusion
a
low
$7.31
12
low since Jan.
new
shows
quarter will hardly improve the supply
fourth
Another fact
To sum up
decision to include con¬
goods manufacturers under the
hard
in
know
priate.
a
shifting into high gear, will grow in
be
these fabricators.
for
quality
tion,
The day
declares,
there probably will be
year
The National Production Authority's
Florida
the
sumer
With
when it is realized that
Direct defense pro¬
volume as
the year advances; with this increase will come a growth in sub¬
contracting as prime producers seek to step up their production.
employ the
However,
substantial volume
index for June
1952 shapes up this way:
First quarter of
to
slight dip last week following the previous week's
sharp decline brought the Dun & Bradstreet wholesale food price,
available for civilian use.
duction
criteria.
very
before'the end of the
adding that
none
quality of these securities,
traditional
this sounds, it is even worse
as
Hits New 5-Month Low
A further
The
supply of individual steel items will be out of balance.
of reckoning on alloy steel is here, this trade paper
strictly
full
faith
and
credit
obligations.
In
appraising
the
it
are.
As bad
municipal securities held by local
banks
falls
in
the category
of
credit
The picture is even worse for plates and structurals. The
this trade authority asserts, that less than 15% of fin¬
steel will be available for nonessential uses in the third
ished
available,
Industry
quarter.
Although precise information is
not
Food Price Index
August.
host of other flo¬
a
last year.
Commission,
much of the
as
financing and
of
Florida-
tne
Improvement
well
as
and
ities under $5,000, which fell to 27 from 47 and compared with 39
5
page
41
serv¬
Board
State
the
Administration
(2589)
,
42
The Commercial and Financial Chronicle
(2590)
I
When
Tomorrow's
there
Wliyte
"systems" that in¬
numerology and astrol¬
By WALTER WHYTE=
included,
know-how
This
and still
includes, market ac¬
A
projection of earnings
Nothing startling occurred and sales is important. The
since last week's column saw trouble is that such
projec¬
the light of day. It was indi¬ tions cannot foretell fashions
tion.
cated
that
here
market in
investing.
the
And fashions in
was
going still higher and the buying and selling of
during the week that is ex¬ stocks are as prevalent as in
actly what happeped. In fact milady's wardrobe.
since the advice appeared
sjt
%
%
here that stocks were a buy,
when
general consensus
was the other way, the famil¬
iar averages have advanced
about nine points, which isn't
anything to be shrugged off.
*
*
*
You will remember that in
changing the position here the
suggestions stressed such
groups as the oils and phar¬
At
maceuticals.
time
the
same
finger was
pointed at the steels and mo¬
tors. What has happened
warning
a
is
since
of record.
matter
a
We won't belabor it.
During each market cycle
question of what to buy
sell
is
the headache
that
plagues actual and potential
investors
isn't
any
that
A group
To be still
to be watched.
one
specific,
stock in such
a
group that acts better than
the group itself is the one to
a
not start making money
But the chances
you're on the right
away.
that
are
You
into.
put your pennies
i'fi
*
*
Conversely
or
group
a
hard and fast rule
be applied with any
least
its
well
as
as
is
modeled
which
molded"
or
modeled
is
Perhaps
defined
a
a
dictionary definition
capable of being
the
"that
as
plastic
a
"that
to
best be
In this
including the
can
illustration.
by
illustration
I
am
materials and
the
have
that
uses
most
commonly accepted as
plastic. The list is given
accompanying table.
Synthetic textiles are seldom
the
regarded
plastics
as
them still
of
some
properties. If
piece
you
cellulose
of
cloth, heat it with
take
acetate
a
the market or
group,
Or if there is it has picious
success.
be
can
remolded
will
not
be
with
the
and pressure.
able
Scrap cellulose acetate
it.
do
to
rayon
cloth
to be commonly regarded as
by the plastics industry. It is
not quite clear to me yet though
pear
such
cellulose acetate
(Saran) and
regarded.
are
the
-
groups
act
Schwabacher & Co.
York
Stock
York
Curb
COrtlandt 7-4150
longer be¬
no
market,
get out while the getting is
Teletype NY 1-928
Francisco—Santa
Barbara
Monterey—Oakland—Sacramento
Fresno—Santa
Rosa
be
can
used
[The
expressed
views
do
not
necessarily
at any
of
They
are
those
the
Only two can be used
thermosetting materials.
They
can
be cast
•
Per 100 Shares Plus Tax
•
6 $462.50
The color properties of the ther¬
moplastic
and
plastics differ.
350.00
262.50
General Motors
....
237.50
17
225.00
Chic. E.111. RR.. 17
Nov. 19
200.00
Amer.
July
23
175.00
Sep.
Aug.
10
150.00
17
175.00
Oct.
23
137.50
July 30
Aug. 16
250.00
21
16
237.50
912.50
225.00
22
250.00
Southern Pac..
24
300.00
27
412.50
Studebaker
22
325.00
16
475.00
21
137.50
16
200.00
Woolen.
35%
Emerson Radio 14%
Western Pac... 54%
Magnavox
16%
Mo.K.Tex, pfd.. 56%
...
Pure
Oil
54
64% Aug.
27% Dec.
Merck & Co... 86
Aug.
Chrysler
69% Aug.
Booklet
on
...
Puts
and
Calls
27
on
250.00
300.00
Request
request
Association, Inc.
Broadway, N. Y. 4, Tel. BO 9-8470
Filer, Schmidt & Co.
Members
urea
molding powders
were
of
Inclusive
introduced
in
laminating
materials
1929.
(and mela-
molding and laminating ma¬
terials) they attained a volume of
about 70 million pounds in 1950.
mine
apparently
They
introduced in 1930.
second
attained
Put
Dealers
&
Call
Assn.,
30 Pine St, N. Y. 5
thermosetting
While you
thermosetting
get
can
molding
the
per
was
45%
year
per
1946 to
from
compounded. It
compounded
annum
tic
Brokers
Polyethylene molding materials
introduced
were
the
on
While
1942.
reported
figures are
separate
no
in
growth appears to be substan¬
They are included under the
production of miscellaneous mold¬
ing materials in the government
statistics on plastics.' -
modern
plastic
was
developed
was
by
&
any of us ever wore
He
could
wear
day after day.
1936—Ethyl cellulose molding ma¬
Government reports do not con¬
the
same
wipe it off with
a
damp cloth.
has
many
desirable
qualities,
its
these
;.
Growth of Total Plastics Industry
table
The
the production
on
of
plastics
a
million
980
about
This is
an
from
increase
amounted
to
pounds
in
increase of 13.5%
The rate of
compounded.
year
an
to
1946
13.5%
a
1950
year
also
com¬
each
of
the
and rigid
1948 and 1949.
of
The favorable per¬
the
total
plastics
reflects the very marked
rise in vinyl sheeting and film
Phenol molding compounds were output, which almost duplicated
introduced commercially in 1910. the
marked
growth of styrene
They have grown substantially molding powder.
Total plastics output showed a
since then. In 1950 phenolic mold¬
ing and casting materials attained gain of 15% per year compounded
about
287
million
pounds, which was in excess of
output of any other molding
the
Casein plastics were introduced
1919.
has
been
Their growth since then
limited.
They
17.5%
to
a
to
year
1950.
1950
and
a
gain of
are
not
use
was
and desirable
new
qualities which the replaced ma¬
terials did not have. In addition,
there
materials made of plas¬
are
tics which could not exist if
tics
had
This
been
not
familiar
example
plas-|
developed.
is
safety
A
glass.
glass, which is a sandwich
transparent plastic center,
with
a
would not exist without this plas¬
tic center.
items
There
number of
are a
used
by the Armed Forges
and in war planes that would not
exist if it were not for plastics.
;
the following ad-,
Plastics have
vantages:
(1) They
lighter
are
per
cubic,
inch of volume than most of the,
materials
:
they replace.
.
with metals
and glass, they have a lower thermoconductivity. Imagine placing
(2)
day,
compared
As
hand
your
of
metal
on
a
car
a
on
or on a
in the
steering
cold winter
a
metal steering wheel,
summer
been shining
after the
had
sun
it.
on
(3) Plasties can be either trans-,
lucent Or transparent.
/.
(
'
(4) The color of colored plastics
extends
nor
It cannot be scraped off
it
can
part
of
off.
wear
It is
material.
the
of
color
basic;
a
Pleasing,
be provided
can
These
plastics.
translucent
for
the;
through
completely
material.
have a range of colors
that it is impossible to duplicate
can
the
materials
opaque
it
re¬
places.
In addition, there appears
to be
wider range of
a
translucent
plastics than
colors for translucent
translucent glass.
for
:
*
■
,
(5) Plastics can be cleaned with
without harming
soap and water
the material or
the
None,
color.
that it replaces
can
be cleaned as easily.
While
glass can be cleaned with soap and
of
the
water,
products
the glass tends to streak
cloudy.
While plastics usually cost
than competitive products
be
and
(6)
more
pound or per cubic inch of
material, the low cost of fabrica¬
per
tion
through injection or compres¬
sion
molding is usually an offset
higher material cost.
>
the
v
The
largest outlets for plastics,
in the automotive, refrigerator;
are
and
toy industries where they are
usually used to replace metal be¬
inherent
of
cause
advantages;
1950.
source
in
will
be
offset by
de-»
in other lines.* Plastics are
mand
extremely short supply at the
present time.
In 1941 the total solid and
plastics amounted
to
rigid
about, twoprincipal
the United
tenths of 1 % of the total
metals
consumed
States.
in
By .1950
had
1%.
42% per annum for the whole
to
•
this
from
period and 44.5% per annum from
1946
They feel that plas¬
tics have added
corresponding
compounded
The
figures for vinyl sheeting and film
and casting materials.
in
1941
from
1946
•
hav,e to reduce operations because
of a shortage of metals, the re-j
duced demand • for plastics from
in
group
of
insulation.,
plastics people do not like,
the term "replacement" or
whereas the output of solid
plastics declined in 1942,
years,
growth.
volume
replace
substitute for rub¬
a
"substitute."
to
including
Industry
to
While the first two industries will
formance
a
of
nine
increase
inflammability has prevented its
Celluloid - production
reached its peak in 1923.
to
on
pounds in 1941 to 1,280 million
collar pounds in 1950. This series showed
All he had to do
The
.
statistics
three molding powders.
separate
any
in
used
are
textile wire
ber and
in
terials.
My father did.
While celluloid is low priced and
Inc.
WHitehall 3-9177
that
celluloid collar.
rea-
a
indication
Plastics
of
coat wire as
plastics
sheeting and film and laminating
materials, grew from 356 million
a
of.
any
glass, wood, paper and
leather.
They are used also to
plastics is given below:
pounded. t
•
•.
Total plastics output,
suppose
as
metals,
shades
Wesley Hyatt in 1868.* It was
commercially introduced in the
I do not
are
The fig-.'
They give
accurate
Place
approximate date of the
commercial introduction of other
The
1951.
and
accurate
as
Plastics
of
tial.
to
terials.
The
production of polyethylene
molding materials, the current rate
rigid plastics have increased from
about 315 million pounds in 1941
first
are
wheel
1950.
colors
pleasing
more
which
reported separately.
ures
and
67%
plastics
not transparent.
are
melamine
and
urea
materials,
those available.
By 1950 it had
place among
be provided with thermoplas¬
than with thermosetting ma¬
can
was
200.00
30
The
styrene
which has been passed
around to you shows that solid and
500.00
4
49% Sep.
•
15
Members Put & Calls Brokers & Dealers
$225.00
17
23
THOMAS, HAAB & BOTTS
50
23
212.50
450.00
Subject to prior sale or price change
Explanatory pamphlet on
Aug.
Corp.. 27% Sep.
Atlantic Rfng.. 72
Aug.
537.50
17
the
exceeded by
molding materials.
only
United States about 1870.
OPTIONS
Mission
20
the
History of the Plastics Industry
(Plus Tax)
Climax Moly... 34
28
10
ranked
during the last ten years was
tain
John
CALL
Per 100 Shares
Dow
Chemical.@93%Aug.
Allied Chem.. .@67% Aug.
Minn. Mining.@43%Aug.
Gen. Motors. .@48%Sep.
Pkilco
@23% Sep.
A.For.P. $7 pf. @89
Aug.
Amer. Woolen.@35%July
Penn. RR
@19% Dec.
J. I. Case....@61%Nov.
CIT Financial.@52%Oct.
Motor Prod's.@29
Oct.
Int'l Paper... @48%Aug.
Ckik. Cot. Oil @19
Dec.
Pure Oil
.@55% Aug.
SPECIAL
they
or
V-
,
The
OPTIONS
als
molding, .and compression molding.
addition, the figures
and rigid plastics
sohie
laminating
Vinyl
compression :
molded. When a material is cast, 1937—Methyl methacrylate mold¬
ing powder.
it is poured into a mold. Mr. Olsen
will describe extrusion, injection 1944—Nylon molding powder.
celluloid
CALL
thermoplastic
presented as
those of the author only.]
SPECIAL
with
with
this Moreover,
with
coincide
Chronicle.
in
They are ex¬
injection molding,
molding. All four
materials.
most of them
article
time
four methods of form¬
and compression
opaque
New York S, N. Y.
Private Wires to Principal Offices
San
itself
or
good.
Trade
Chicago Board of
14 Wall Street
than the group,
worse
the group
Exchange
Exchange (Associate)
San Francisco Stock Exchange
New
pick starts to
haves better than the
Members
New
stocks.
pick the
stock you
the
are
ing plastic articles.
An added word of caution: If
Pacific Coast Exchanges
cluding sheets, rods and tubes.
so
You will note that plastics fall
in two classifications
thermo¬
want to find the trusion, casting,
right stocks, go through the
list, pick the groups and from
Orders Executed on
.
❖
-f
solid
sonably
—
❖
In
total
growth.
,
of
Now if you
Securities
These products ranked
quantity in 1950 among
molding and casting materials, in¬
stood in fifth
is used to make low cost molding
place among molding and casting
powder.
materials (including sheets, rods
While
some
chemists
classify and tubes).
.
both cellophane and rubber prod¬
Styrene molding materials were
ucts as plastics, they do not ap¬
There
Pacific Coast
uses.
on
pounds.
rayon
a
proper temperature
You
can
very hot iron
will melt it. The liquefied
and you
cloth
even
contain plastic
is one to be sus¬
despite the divi¬ plastics and thermosetting. When a
escaped me. I know there are dends,^ current earnings or thermosetting plastic has been cast
or molded,
its
for
In all times. The shapfc is fixed not
systems that involve cabalis¬ balance sheet positions.
material will
tic charts; others that call for the long run stocks go up on flow on
reheating. Thermoplastics
future possibilities not on past can be reheated and remolded an
indefinite number of times.
performances.
can
butyrate,
third among
molding materials. The rate of
though growth of these molding materi¬
want to conduct
you
experiment
an
tic
fourth in
molded."
or
tate
small'
a
miscellaneous
some
urea and melamine ma¬
terials which may not be for plas-
not
used
esti¬
are
phenolic,
sheets, rods and
tubes and molding materials at¬
tained
a
volume of 110,000,000
change
been
of
include
is
at vinylidene chlorides
There stock that doesn't behave
and traders.
first
were
casting materials.
Moreover, it has shown a very
why cellophane is not a plastic
rapid rate of growth during the
when
competitive
transparent
last ten years, more so than any
sheets such as those derived from
other molding material. From 1941
a, rubber hydrochloride (Pliofilm), to 1950 the rate of growth was
road.
v./,.'/
sheets, rods
produced
acetate
tubes
when
of stocks that
persistently acts better than
the general market; refuses to
back away during a general
reaction; does better than the
market on a general rise, is
more
Cellulose
and
being
place, and it is there
answers
may
be
found.
a
government sta¬
plastics output.
on
commercially in 1927. In 1950, cel¬
lulose acetate and cellulose ace¬
it
include
rigid plastics include
amount
in
the
right
the
or
that
of
tistics
and
the
adopt this point of view, we
we
of
a
characteristics
only be called
can
when
tic
that
say
quoted
1950, most of them
plas¬
plastic.
plastic
If
to
the
has
in
included
the
in
action
into
market
may
*
*
*
knowns
that
paper.
solution
material
sensible
statistics
Moreover, they are not en¬
tirely consistent. The figures on
total plastics and on total solid
un¬
of the knowns and
most
be
would
and
leather
a
Thursday, June 21, 1951
.
mates.
molding materials were
presumably introduced commer¬
cially in 1928. They attained a vol¬
ume of 172 million pounds in 1950,
Market know-how channels
the
textiles,
Probably
The
and
Prospects of the Industry
ing
.
plasncizers, fillers and extenders.
Except for the figures for 1949
Plastics and the Growth
*
%
if
,
page
younger
that has
Says—
=
lot
a
from first
Basically, there's nothing
replaced know-how.
ogy.
Walter
was
Continued
were
cluded
Markets
evaluations.
sheet
balance
.
in
grown,
The
the
dous.
ures
the percentage
to about one-half of
consumption
United
I
to
States
of
is
have presented
indicate
that
metals
tremen¬
these fig¬
plastics
the
industry is still in its infancy.
It
Volume 173
Number 5022
.
The Commercial and Financial Chronicle
.
.
still amounts to only a small fraction of the metals, glass, and wood
that
used
are
The
The
Outlook
for
Plastics
being affected by
Classification
sion
of
the
cellulosics
cotton linters crop in 1951-52 and
because of new dissolving wood
pulp capacity,
the
*
ible
The
chemical
industry
as
whole.
a
For
price level continues to rise
a
period of time, plastic
prices are likely to show an in-
9%
that
is less
_
tinued
Leather
plastics
i,
,
.,
,
a
of the time
as
etization
2%%
Federal
of
that
Ureas
debt
in
The industry will continue to grow
and
materials
through research
tailor-made
Today's
plications.
plastics
will
in
proved
their
for
.
be
the
five
.
motion
teiri
Rubber
be
used
for
the
houses, Other
trim
interior
M
of
large volume
new
funds."
..
..
...
,
r
■
j
g
available
to
and hard rubber.
developed. Plastics, therefore,
may
no
outstanding. Some
be
in
bonds
hi
amounts, such as $1% billion, $2y2
in
mature
—
'any
in
substantial
event, the Federal's ait-
the lull in the inflationary virus
tify this attitude by the Federal.
suspect that the situation with
respect to the Series F and G
L
has
bonds
Obligations
In
longer be used
all have contributed to jus¬
may
Position of Nonmarketable
any
been
not
overlooked
event, I have the impres-
with respect to 'the
pres?,nt„mfket condition let me
recall that nonmarketable obli-
git)n that 0fficiaJ[s may have COncluded that new lows in the mar.
gations such
ket level would serve no mentorious purpose.
M iPVPi
the savings notes
as
and savings bonds were
wo,jid
securities.
cPrvp
no
moritor-
originally
attuned to the yields on market-
Recognition
Future
Outlook
■
of
As to the future outlook, let us
the necessity of keeping some
fjrst take the business picture. The
reasonable relationship betweenmajority viewis that a resurgence
the yields on these two classes of 0f inflationary pressures will oc-
Under
s?tances. it becomes
indeed
purchase Treasury bonds.
when
these
a rare
the
thereabouts.
other
and therefore that we
into a recession that wil1
deeper. and more prolonged
calls for
may run
circum01
the
On
hand a growing minority believes
instance
purchase
time in the late summer
Cur some
or
t«
words,
opinion
outlook
covers
on
the
business
~
<$>
,
—_—
—-
Production of Plastics
Molding Powder, Laminating Materials &
Including Fillers, Plasticizers and
a very
wide range
How, (therefore, can we have
any confidence in
our point c
view toward the bond market
TABLE 2
Oddly enough I think we can. 3
inflationary pressures are renew*
Sheeting & Film
Extenders
as
early
as
likelihood
(Unit—1,000 lbs.)
,
,„jau
must
apparent of-the savings notes. No change
the>
disparity may be-
serious problem with re-
a
effect
a
rise in rates
undesirable for
decreased
comparative
decline
some
the Treasury debt has to be
oth?f words, funds that become plated.
rubber products
thetic textiles;
As
the
?f "5 have worried about the maof Series E bonds Begmmng m 1953 the Series F and G
tive effect, brft It mSo'adds to the' Of the Treasury recently stated
desire to rebuild liquidity.
In that no changes were contem-
Regarded
„,w
.
it
it
recent
had
of
f and G bonds
held by someone",
^
1953,
Nonrigid
..
year
on re-
spect to the $23 billion of Series
the Treasury to exercise its call securities was recognized reoption-on 2s maturing on Sept. 15, cently by a revision m the terms
;
.
p,
and
a
To'mppf "marlrT/ nrpfpT
made
come
^fw needs must be met,
s
can
therefore
true that the
is
which
Hydrochlorides—Nonrigid
A
It
v
Cellophane, rayon and other syn-
-
applications also are likely to be
*
-
picture film.
-
the
has
greater than under the old pol- able
.
„
_
of cleaning, plashes may some day
of
area
Sin-
Treasury
offerings
insures
an
availability of funds that may be
Cellulosics—Nonngid
im¬
to
snrv
2/enes~~Nonrigid s^eotmg. icies.
sheeting;
of
qualities
materially
next
.
,
a
titude toward the restricted bond
market has changed. Purchases,
although not equal to the availability of bonds, have been steady,
In the meanwhile, some sell- The needs of "an orderly market,"
^ against forward commitments, the desirability of avoiding fur*11 has to be done, some sub- ther "despair" among holders, and
ences, and the necessity that the
Federal underwrite the success of
Thermoplastic Materials
years. New applications are probsheeting.
able. For ; example, because of Vinvlidene Chlorides
,
Trpa
VinyIs—Sheeting and film.
ap^
consequently,
that
study
upward, the
bids
heighten the desire to acquire a
J1101*6 adequate volume of short^
term secunties that may be rekerned if they cannot be sold,
by investors, the necessity of the
—
be
can
many
„
Melamines)
Con.eauenHv
.
an increased liquidity preference
Non-Rigid Plastics
vantage of the industry is that its
than
obtain
can
^ ^ S° ^ * S™*e
m on-
Treasury investors
ceCurities
adequate
Ph?^I an<l the boomerang is to
matter of fact the combination of
Laminating materials.
yapidly. The most imporlaiit ad¬
less
if
have
of
the
nonmarketable
versus the marketable obligations
is quite interesting. As time goes
along, unless the price level of
Treasury restricted bonds moves
available. These conhave combined more or
prices
re-
the
may
"high availability of
(including
.
iVw"vni.i ™nrt *
te^m
Thermosetting
favorable.
vary
A
con-
oolicv
bonds, but it
sure
^ 1 he longer term outlook for the phenolics—Laminating materials,
aplastics industry is
kefs
the Treas
duce what has been termed
,
costs.)
,
.
bonds
merits
liquidity"
fOT
preference
neV
the
*
Thermoplastics
the
in
with
meet
..._
Su
'
•
sell;
said
must meet the^h'vestore^ de
Sre Sr liaufditv^ In rether words
mercially utilized for this purpose because of high fabricating
of
for
G
of the sale of marketable 2M»s.
purpose
*2 g
urv
(No thermoplastics are being com-
growth
any
to redeem F and G bonds in lieu
rela-
are
are not
ditions
Refunding
refunding offering, a
certificate at l'/s%,
will
we
ditions
in prices in general. This influence
should offer a sirong support for
the
than
Series
half, they
a
makes
Furthermore,
obShiable ^ronf1 the Psale of^most
bond
though the yields avail-
private credits
1S
,.
,,
itedneVoffCTingsUto markefcon-
the gain
crease
-
of the time.
as
month
that
Wood, Glass,
or
bonds
come
,
Dnngs nut an interesting nnint
out an intprn<;tinff point.
If investor
psychology is such
Rigid Materials
Textiles, Paper
over
tively attractive and the
change the
hrinpc
(including Melamines)—
Molding materials,
the
the
have
on
Recent
is con- Ureas
Providing
that
that
even
The recent
Thermosetting
jn Combination With
true
able
not
just
,
example, if
is
losses
loss
__
Phenolics—Molding materials;
casting materials.
prices relative to the price plastics
does
not
or
conditions
plastic materials. These efforts Caseins—Molding materials,
over a period of. time are likely
to bring about a more favorable
Molding materials.
Jevel of
also
the Federal is committed to insuring the success of
of
level
It
account
of
them
and
G
or
today.
no
Finally,
shortage is likely Acrylates — Molding materials;
rods, tubes and rigid sheets.,
phase of the benzene shortage is
Nj,[ons_Molding materials- rods,
over.
~
:
°
"tatcnaio,
over. New netroleiim henrene eaNew petroleum benzene ca
tubes and rigid sheets.
parity will be completed some¬
time in 1952.
Recent estimates, Vinylidene Chlorides — Molding
materials; rods and tubes.
however, seem to indicate that the
.
Re-
held
loan conforms to the con£ltl0*s set forth by the Voluntary
Treasury cash financing and re- Credit. Restraint Committee.
In
fundings after consultation and
?r pstances, where the inagreement that the new issue's 7estor is willing to take the loss,
terms are reflective of market he unable t.n sell* nripmio+p hiHc
now finds frequently that he
is unable to
,
to come to an end before the acute
stantly'trying.'to reduce the. cost
Federal
jn its entirety by somebody.
Poly ethylenes—Molding materials;
rods-tubes and rigid sheets.
latter part of 1952 as it is now.
by
fact that the debt has to be owned
of the cellulose
shortage of benzene will persist
throughout 1952. It is-not, however, likely to be as acute in the
F
43
restricted, bonds. Any further delonger com- about have tied the hands of some cline in the price if marketable
mitted to maintaining inflexible lending institutions.
Many feel restricted bonds would heighten
rates, but whether rates are flex- that they cannot afford to take a the incentive to some investors
s ee s.
phase
serious
g
*
.
market techniques.
The Federal is
wnta„inifl
"
evidenced
serve
Cellulose Derivatives — Molding
and
materials, rods, tubes and rigid
large cotton
a
Treasniy Securities and Inflation
Plastics
styrenes—Molding materials,
is
Series
holders
Thermoplastic Materials
seriously limiting styrene molduig powder output.
Because of
prospects for
21
page
sense
Solid and Rigid Plastics
while the
shortage of benzene
of
from
been
raw ma¬
terial shortages. The shortage of
cellulose is restricting the expan¬
very acute
Continued
1
TABLE
outlook for plas¬
term
near
tics is
probably will continue as one of
the most rapidly growing indusin the United States, tries in the country.
(2591)
August, there is littl
will have high*
we
/
Any increase in th
flow of personal savings to ir
bond prices.
Phenolics and Other Tar Acids:
Molding materials
—
——
1947
1948
1949
1959
194,236
171,117
129,582
220,251
58,201
1945
1944
1943
1943
——————
§Casting materials
•
1.041,>
194C
139,624
V
63,526
61,416
52,432
66.706
stitutions will
liquidity.
we
molding and castings——
Laminating materials—
Total
—
*199,377
*31,112
*151,791
*50,151
*230,489
*201,942
*2,500
Total
*156,880
*144,924
*49,554
*165,542
197,825
257,762
232,533
*37,039
27,725
40,546
43,062
182,014
39,814
*50,883,
72,866
*195,807
*202,581
225,550
298,308
275,595
221,828
*4,000
$4,394
*6,892
*17,106
*58,443
*89,986
*123,507
184,834
258,740
*34,020
*^6,434
*31,688
*34,769
*59,763
*75,388
*52,389
46,167
Bond
359,823
69,792
and
—
—
*31,840
;
than
ex
prices could rise somewhat
untrustworthy.
program
summer
accelerates
or
during
the
autumn at the sched¬
uled or expected rate should no
Vinyl and Vinyl Copolymers:
*13,110
*10,000
—
*35,560
*20,000
*23,110
Sheeting and film—,
deeper
Up to this point I have been
speaking in terms of the short
run.
Whether or not the defense
Urea and Melamine:
f Molding and laminating materials
a
but the market would be narrow
Styrene:
Molding materials
be used to rebuil
On the other hand, i
into
pected recession, I think that th
newly-acquired liquidity comple:
will
nevertheless
be
dominan'
286,957
v
*206,434
:
run
the
long-run desirability
adequate defens
*52,790
*67,873
93,291
110,278
111,063
123,962
171,778
change
*35,000
*40,000
52,079
66,426
98,021
157,545
227,149
of achieving an
*82,790
*55,560
*60,332
*30,000
.
*95,332
*107,873
145,370
176,704
209,084
281,507
398,127
armament. J
Thus, defense needs should domi
the long-run outlook. Now
of building up our de
greater strain on thr
economy than the second phase o'
maintaining it; The first or build¬
ing process requires larger planJ
and equipment expenditures an<~
in general generates stronger in¬
nate
Miscellaneous Synthetics:
)
*35,280
*44,100
*62,322
*54,569
56,149
319,042
365,332
373,819
424,651
543,695
696,535
15,129
14,042
15,951
15,629
10,376
7,057
7,696
54,386
65,026
73,300
18,161
103,069
12,886
77,446
66,292
75,061
109,794
Other' cellulose L——-—
188
48,246
1,250
3,125
3,750
4,063
5,000
4,000
8,888
8,519
12,134
Total cellulose plastics^—_
53,622
64,625
71,553
84,727
92,992
126,230
94,332
85,556
90,637
129,624
*14,700
*23,520
302,639
Cellulose acetate and butyrate—
16,499
36,935
Molding materials
———
—
.
69,999
41,751
61,749
776,087
1,149,031
the process
fense is a
'
.
Total
-
synthetic plastics—
730,574 #
Cellulose:
'
Nitrocellulose
—————1—
flationary pressures. Mr. Wilsor
has estimated that by some time
such
over
as
1952 or 1953 this change¬
from .a building up to a main¬
tenance program can
Total
synthetic and cellulose
*35-3,261
*383,667
*436,885
*458,546
*517,643
*669,925
*790,867
*816,130
866,724
1,278,655
.Total solid and rigid plastics
*
Estimated*;
inclu.
casting,
Note:
Data
was
t
Figures
1i
for 1946
Miscellaneous
*313,516
*357,331
to 1950 were estimated from
incl. laminating
and molding
*372,663
actual published
derived from reports of the U. S. Tariff Commission and Dept. of,
*440,604
data
on
Commerce,
resin
*590,121
contents.
*683,895
.
X
*675,047
Published
Bureau of the Census.
figure.
669,365
978,640
S Miscellaneous
vari-f
In
opinion this will become one
of the outstanding considerations
of investing and 'lending institu-
ous
*315,149
be expecte<
to result in a relaxation of
restrictions
and
controls.
my
Continued
on
page
44
The Commercial and Financial Chronicle
.
.
Thursday, June 21, 1951
.
(2592)
4-1
able some low-powered
Continued from page
43
;
lars
Treasury Securities and Inflation
into full consideration reduce
themselves to the category of
fighting windmills. The Federal
lon^-term Treasury bonds.
Reserve's program with respect to
If the outlook is so dreary in- Treasury securities has made some
sofar as quantitative credit con- minor and temporary contribution
trol goes what are the better al- to the anti-inflationary fight, but
ternatives9
The Wilson Commit- in so doing it has so reversed the
lee has suggested that the Federal
attitude of investors toward
Reserve be granted increased Treasury securities that the longwill add a second
phase to the preference for liquid
securities over intermediate and
pdwers over the cash reserve re—
quirements of member banks
and
that
suggested another idea
compulsory holdings of
has
smacks cf
securities
Treasury
or
reserves
to
could
in various forms, such as
Such increased powers
them
end
alternative
an
as
additional
as
up
the so-called loan reserve or
asset
Increased cash reserves would not solve the probiem that arises from the fact that
plans
reserve
the
its entirety
somebody. Comholding of Treasury sedebt in
Treasury
must be held by
pulsory
into consid-
rMirhips takes this fact
to
later be applied to
institutions and eventually
it
other
may
Compulsory hold-
individuals.
to
applied
is
it
if
but
eraticm
banks
i.ng of Treasury securities is incompatible with the basic requirements of a reasonably free private
economy.
The
have?
do we
be given
can
answer
clearly in one sentence. Create a
cash surplus for the Treasury of a
size sufficient to cope with the
this
meet
not
does
in
tax
is
have this practical
come
those
from
that
problem
and
of in¬
maximum
the
inflationary pressures.
There is one other point that
tion
to be
more
I
viet Russia and
whom it
to
was
A Real Riddle
This whole Korea business
daily becomes more of a
The peninsula was by what seemed to be
common
consent
"strategically unprofitable" prior to
June of last year. We had long ago pulled out, and had
made no preparations whatever for going back, notwith¬
standing obvious intentions of the North Koreans under
Communist control to take over throughout the peninsula.
riddle anyway.
If
current
accepted, the Administration at the eleventh hour
(without much attention to what the military men had to
say) rushed in.
If holders of such
net sellers on balance,
are
We face
serve
paid
are
with
for
high-
powered Federal Reserve dollars.
Beginning in May 1952 these re¬
progressively be¬
bonds
stricted
undoubtedly
will meet with some commercialbank demand.
The dollars used
by
commercial banks may be
^naracienzeu
ww-uuwcicu dolcharacterized as low-oowered UU1iars compared with those that are
ised
by the Federal.
Why not
come
and
eligible
^rpuXsefoTTresMcTed
-
bonds now?
Somewhere
the 14.000
country, buying
among
this
banks
in
power
might
be
extent
whatever
To
generated.
it
occurs,
low-
powered dollars would take the
place of
high-powered Federal
Reserve
dollars.
If some banks
:oici snori-term securities
uuy
sold short-term securities to buy
onger
bonds, the former might
'ind their way to nonbank in/pstorq seeking liquidity.
vestors seeking liauidity. If such
If such
securities ended up in the Federal,
that is preferable to Federal pur¬
chases of longer-term bonds. The
only objection to this idea that
has occurred to me is that a hand¬
ul
ful
of fully-taxable
bank-eligible
might decline. Unless bond
>rices improve materially within
he next year, this would take
ssues
place anyway.
To
must
sum
be
up,
the Treasury debt
held* in
somebodyj.
todyV
Any
its
entirety
steps
that
it is
as
well
are
as
then?
Is
Russia will
there
anyone naive enough to
could then set up what we should term
a democratic regime—or support the Koreans in doing so
—and then pull out with the slightest assurance that
the events of a year ago will not be repeated, this time
suppose
that
we
from the vicinity of the Yalu River, at' whatever time in
the future the Kremlin thinks it well? Any government
sponsored by tRe "free nations" or chosen by the Koreans
blessings of the "free nations" would, of course, at
once be a "puppet
regime" in the language of the Commu¬
nists throughout most of Asia. A strong protecting military
force in Korea or very nearby would always be necessary
£ continued "freedom" in Korea in these circumstances,
Ferhaps we could make Korea safe for democracy by
crushing Communist China and giving the Kremlin a
thorough drubbing—but even the counterparts of the
"unconditional surrender" philosophers of World War II
days do not
go
that far.
About the most
-n.uuui me
affair,
or so
it
can
seems to us,
is the sort of "victory" won in
powers.
merely
power
power
is
we
with
can
world
3*
World politics :
a very
politics in the sense
used
its
in
execution.
game
set of thou shalts
a
and
other
by petty politicians
of
idea
so
we
or
for
live—not
some
It is
a
a
very
state dreamed up
learned philosophers.
some
question in
our
mind, and
time past. It is this Wilsonian
the surface to be
with world affairs.
In actual
an
ideal
way
Certainly
of dealing
practice it seems merely to
Jot of political sham or ignorance into the pro¬
ceedings.
whole
other nations in the
"open covenants openly arrived at."
this appears on
invite
are
peoples with other ideas.
real world in which
doing
thou shalt nots, we are
or
deceiving ourselves badly. There
world
of world politics. If we
proceed without killing costs to enter this
If such matters must be debated before the s
world
by -politicians with their eyes
scheming centered
the outlook is not
on
and their '
the rank and file back home—well,
J
altogether heartening.
:
;
-
But He Is
-
Right!
•'The drift away
from our competitive system of
free enterprise is threatening the initiative and in¬
centive of our people and throttling the energies
essential to maintain the level of
our
material prog-'
The drift away
from the truth is leaving the
people confused and bewildered.
"The drift downward of the purchasing power of
our
currency which has progressively fallen as it
ress.
has become
,
increasingly influenced by the political
.
fortunes of the moment continues unabated.
"The drift
upward in the cost of bureaucracy and
expenditure of public funds in complete disregard of the tax burden has accelerated so alarmingly
that the people are rapidly becoming the servants
the
'
of the state.
"The drift toward socialism
ternal pressures
faces
us
of individual incentive and full
General
personal energy."—
Douglas MacArthur.
The General
normal role
a
through indirect in¬
with the inevitable collapse
in
seems
to be
stepping outside of his
discussing such questions
He may or may not have
wc can reasonably hope for iff this
ieasonauiy nope ior
mis
we
as
politics, and such it is in
been elements in this
North Korean communists) back to the
*> far f ac.tual fi§hting is favorable moment.
Concerned, and that
be content to wait a more
what
have here chosen to ;i
we
to have mastered the game
appear
only
and
power
has been
Yalu River. It is conceivable (how probable we have no
way of knowing) that thel Chinese have suffered badly
enough to be willing to let it go at that for the time being
But
do not
we
But it is not
sense.
arena
that those against
soon to be, far out¬
they may or may not be enthusiastic about communism,
they certainly are not particularly gladdened to have
powerful western forces fighting on the continent of Asia.
It is possible, we suppose, that the men and the materiel
now committed to Korea can push the enemy (including
Chinese
the
played by the other great
think
a
by
;aken which fail to take this fact
•
make
to
than bad.
worse
ways
wholly different situation in Korea—yes,
general. So far as Korea itself is con¬
cerned, the conflict there is, or was at the start ift any
event, an impromptu war. Korea is a peninusla jutting
out from a land mass inhabited by several hundreds of
millions of people now under Communist rule, and, while
varying degree, unmarketable.
Any purchases of Treasurv re¬
stricted bonds by the Federal Re¬
difficult
it
Maneuver, intrigue, bargaining and compromise, have al¬
in the Far East in
in
saved from destruction by North
were
military miracles, but now
whole affair strategically •
profitable. There can not be the slightest question that
diplomatically the management of the affair was rather'
find
that
A Different Situation
largely to restricted
securi¬
the
securities must be purchased by
the
Federal Reserve or by the
Treasury, or the holdings become,
bonds.
We
Korean clumsiness and modern
All this raises still another
jbeen confined
ties
testimony at the Congressional investigations
is to be
real
It could then be made effective,
invoked were, or were
So¬
Japanese controlled territory in the days
preceding World War II.
matched.
like
the border between
unlike that which characterized
as
however, by reason of the circumstance
add. The problem
in the Treasury bond market has
would
substantial period of time,
a
will
is sometimes called power
dreaded, than those whose destruc¬
encompassed.
we
psycho¬
always be exposed to invasion from
the north, and it may well be doubted whether the Amer¬
ican people are ready or will be ready at any time in the
future to keep large armies in Korea as a deterrent. We
are
in danger, of course, of falling into a situation not
politics, and
in the
even
over
sort of
"face," and may
the "face" previously
altogether clear just
"victory" in Korea—
thrust ourselves with violence into what is known
leading .nations in the world, if not the
world, it becomes very dangerous.
of the
Korea
The fact of the matter is that
leading
It cost
many lives in World War II and left a substantial part of
what we had hoped would be part and parcel of the "free
world" needlessly in the hands of tyrants fully as bad,
sources
exert
one
anomaly in the field of world politics and diplomacy.
sense wholly unrealistic.
When espoused by
nation
haunting them at every turn, but
our need is to raise increased rev¬
enues
an
one
possible with the mini¬
mum number of squawks from our
constituents?" Members of Con¬
money as
gress
that is.
was a
us
or
if the matter is viewed
concerned, I believe the number
It is in that
originated from an attitude
"how
can
we
get as much
have
of
bonds.
As far as bond portfolios are
type of emotional reasoning is fraught with
hazard. The type of extremism thus represented
this
This
of the Berlin blockade.
moral victory. It gave
have done something to detract from
enjoyed by the Kremlin. It is not
how we are to win even this type of
~~
enormous
to
case
logical,
As We See It Sy Y
and
require¬
seems
revenues
the
bank dol¬
the high-
Continued from first page
ment, and it fails lamentably in
another respect. The proposed in¬
crease
these
~~
long-run
inflationary
pressures
that confront us. The present tax
bill
for
fetish for the next year or so
will be a desire to rebuild liquidity by the acquisition of Treasury
securities that can be redeemed
if they cannot be sold. Bond prices
will be affected by business conditions and by Federal Reserve
policy. If business conditions rerun problems have been magni— main inflationary, X believe that
Red. The way to achieve a major bond prices will remain about
anti-inflationary result of a quan- where they are. If a greater than
titative nature is not to be found expected recession occurs over the
in granting the Federal Reserve next six months. I think bond
increased authority or by initia- prices will rise slightly, but this
ting compulsory holding of Treas- rise will not be backed by any
ury securities. It must be found broad demand. The upward moveby creating for the Treasury a ment will take place largely as a
cash surplus that is adequate to consequence of a reduced supply
contain the inflationary pressure, of securities in the market. Where
Federal Reserve and Treasury an investor has funds that must be
policies must be so coordinated more or less confined to Treasury
that this Treasury surplus can be security investments, and where
used with a maximum rather than his liquidity is adequate to meet
a minimum benefit.
Fortunately, any foreseeable needs, I would acthe new Treasury-Federal working quire Treasury restricted bonds at
arrangement offers a good pros- this time, particularly the shorterpect of success in such mat+ers. term issues. Where an investor can
In addition, I think it would be use tax-exempt income, I feel that
desirable to remove the restric- high-grade municipals should be.
Rons against bank purchase of all
,
,
in view of their curissues of presently-restricted purchased, in view of their cur
Treasury bonds.. This would en- rently attractive yields.
other alternatives
What
substitute
powered Federal Reserve dollars
that are currently being used to
maintain an orderly market for
it
and
tions,
to
as
these.
ambitions looking toward
nonmilitary career—as some have suggested.
But in what he says here he is eternally right!
'
.Volume 173
Number 5022
The following statistical tabulations cover
Indications of Current
Business
AMERICAN
IRON
Indicated
STEEL
AND
Equivalent to—
ingots and castings
latest week
week
Activity
or
Previous
Month
Year
Week
Week
Ago
Ago
103.2
103.2
.June 24
capacity).
that date, or, in cases of quotations,
on
.June 24
2,063,000
2,063,000
2,071,000
Total
1,929,100
Crude
stills
to
runs
daily
—
output
Kerosene
output (bbls.)
and distillate fuel oil output
fuel oil output (bbls.)
oil,
Gas,
Residual
(bbls.)
4,745,569
3.833,277
4,151,361
4,377,588
3,487,520
165,362
224,333
219,488
155,931
143,648
126,269
$258,666,000
$287,741,000
$141,650,000
110,874,000
12,529,000
11,634,000
9,717,000
6,713,000
876,000
11,978,000
2,380,000
33,232,000
31,297,000
16,558,000
$416,977,000
$455,904,000
$231,149,000
$2,518
1,705
*$2,370
*1,673
854
"*882
1,036
760
*795
941
78
*71
16
16
sales (M thems)
(M thems)
sales
gas
(M thems)
gas
9
116,445,000
9
21,227,000
June
9
2,320,000
—June
9
8,678,000
8,294,000
8,035,000
6,961,000
Exports
-June
9
8,921,000
8,929,000
8,956,000
7,307,000
Domestic
shipments
__
Domestic
warehouse
credits
_
6,162,100
6,460,000
5,305,450
5,524,000
20,962,000
2,485,000
19,029,000
1,916,000
Imports
BANKERS'
—
RESERVE
BANK
FEDERAL
of May 31:
—
.
9
129,353,000
119,249,000
Dollar
21,890,000
17,740,000
Based
on
June
9
57,372,000
54,662,000
47,056,000
18,499,000
45,220,000
June
9
38,839,000
38,871,000
36,557,000
!
exchange
9
130,249,000
20,797,000
134,522,000
June
—
57,661,000 •
8,539,000
39,192,000
-
,
OUT¬
OF NEW-YORK—As
June
at
ACCEPTANCES
DOLLAR
STANDING
pipe lines-
at
Gas, oil, and distillate fuel oil (bbls.)
Residual fuel oil (bbls.) at
Ago
(M thems)
gas
June
June
1
(bbls.)
6,168,350
9
!
_
at refineries, at bulk terminals, in transit and in
Finished and unfinished gasoline (bbls.) at
(bbls.)
Month
Month
For
—
Year
4,472,654
ASSOCIATION
6,169,250
6,601,000
21,086,000
2,317,000
—June
:
___
Stocks
Kerosene
-
Previous
(bbls. of 42
average
(bbls.)
average
Gasoline
"•
of that date;■,
are as
101,957,000
GAS
Natural gas sales
Mixed
—
J
April:
Manufactured
AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output — daily
gallons each)
;
either for the
are
Month
AMERICAN*
of
(net tons).
;
Latest
101.2
103.6
-45
production and other figures for the
Dates shown in first column
month available.
or
month ended
Latest
INSTITUTE;
steel operations (percent of
Bteei
(2593)
The Commercial and Financial Chronicle
...
I
and shipped between
goods stored
countries
foreign
Total
—
28,000
ASSOCIATION OF AMERICAN RAILROADS:
Revenue
freight loaded
June
9
813,326
744,644
808,127
796,041
Revenue
freight received from connections (number of cars)—-June
9
655,639
657,050
684,567
BUILDING
637,437
of
(number
cars)
LABOR
Total
ENGINEERING
—
Total
Public
construction--
construction
June 14
—
__„
construction
State
and
-J—
_
—June 14
...
Additions
$151,792,000
$277,411,000
74,811,000
180,447,000
76,981,000
45,157,000
96,964,000
77,783,000
148,342,000
147,694,000
106,398,000
75,547,000
Industrial
41,296,000
31,824,000
21,417,000
Commercial
Nonhousekeeping
Nonresidential building
—
and
lignite (tons)
anthracite (tons)
coal
June
Pennsylvania
Beehive coke (tons)—___
.___
9,925,000
June
—
;
9
___.
9
789,000
*8,710,000
734,000
June
__
9
141.400
*133,800
9,620,000
845,000
863,000
139,200
137,600
10,529,000
SALES
STORE
INDEX—FEDERAL RESERVE
TEM—1935-39 AVERAGE=100_
311
*273
-June 16
output (in Q0Q kwh.)__
6,746,691
6,733,662
All
(COMMERCIAL
STREET
AND
INC.
INDUSTRIAL)—DUN
;
•
—
V
BRAD-
A
V
130
June 14
-
171
172
->
178
IRON AGE COMPOSITE PRICES:
.June 12
4.131c
4.131c
4.131c
3.837c
Fig iron (per gross.'ton)—!—
Scrap steel (per gross ton)
.June 12
$52.69
$52.69
$52.69
$46.38
$43.00
.June 12
$43.00
'
$39.58
$43.00
Domestic-
and
Straits
tin
(New York)
Lead
(St.
24.200c
24.2006
24.200c
22.200c
.June 13
,
27.250c
27.425c
24.425c
22.425c
.June 13
123.000c
136.000C
139.000c
77.625c
;___
.June 13
17.000c
17.000c
17.000C
.June 13
16.800c
16.800c
16.800c
11.800C
.June 13
17.500c
17.500c
17.500C
15.000C
at_———_s,
Zinc
(East St. Louis)
at—___;——___—.
U.
corporate
_—*.
June 19
97.33
97.35
97.30
109.97
110.70
111.44
June 19
112.93
June 19
109.24
-*
109.79
June 19
104.31
106.92
119.20
ERAL
115.24
As
105.86
104.66
June 19
107.44
-
120.63
t
,110.52
June 19
_—1.
109.79
110.70
111.07
113.70
114;08
115.04
June 19
2.68
2.68
3.13
3.09
2.95
2.91
2.89
2.62
Juhe 19
3.01
2.96*
2.93
2.69
3.21
3.18
3.15
3.47
3.40
3.28
3.34
3.31
3.28
3.14
—June 19'
Baa'
Utilities
——June 19
———
.—June 19
3.18
3.13
3.11
2.97
2.95
2.90
2.65
June 19
——
492.1
492.6
497.2
In
395.6
r
p.
PAPERBOARD ASSOCIATION:
received
Production
MOODY'S
June
283,122
266,566
9
244,690
June
June
<
9
June
—
.
activity-—_—
Unfilled orders (tons) .at—;
PAINT AND DRUG
—
REPORTER
PRICE
Banks
(125)
Insurance
243,835
214,497
Average
9
102
100
104
ON
EXCHANGE—SECURITIES' EXCHANGE
THE
N.
9
696,726
658,722
732,449
400,731
151.6
151.6
153.8
120.3
REAL
Dollar
value
June
20,988
2«
35,093
600,390
2
Juhe
1,026,075
Number of orders—Customers'
Customers'
short
Customers'
other
2
$28,163,536
$45,279,279
June
2
16,655
27,274
34,320
2
285
353
261
2
16,370
26,921
34.059
21,841
June
■;
2
455,974
793,875
972,495
2
11,233
13,445
9,401
611,770
7,730
June 2
.—
^Customers* other sales.;——_—!___
—
3.29
6.18
5.79
6!35
5.97
£11,070,000
£1,639,000
£160,476,006
$431,528
$362,733
145,038
289,724
75,979
211,467
215,548
444,741
$19,409,644
780,430
$33,506,448
$41,932,600
129,560
246,702
$402,592'
108,954
192,387
60,738
184,41T
218,979
$1,369,284
$1,182,753
$1,221,644*
$11,411,500
LTD—Month of May—
$8,370,000
$1,123,500
$1,372,300
1,024,400
$1,281,200
1,101,900
$803,000
585,018
IN
NONFARM
S.—FEDERAL SAVINGS
FINANCING
U.
CORPORATION
INSURANCE
March
(000's omitted):
savings
;
banks
—
Miscellaneous
lending
institutions————
67,523
183,848
245,970,
203
June
—
sales___—
short sales.
Customers'
3.41
6.55
22,044
June
sales.,
—
5.19
4.26
6.35
BANK,
of
Individuals
606,152
June
._
6.49
5.88
4.74
3.49
————i.±—
LOAN
Mutual
19,784
$53,432,366
$2^,356,196
Total
c
total sales
sales..
Number of shares—Total
38,178
1,154,695
June
_____——__,
Odd-lot purchases by dealers (customers'sales)—
,
i"
—
6.12
5.85
Savings and loan associations——...
Insurance companies
—1—■——__i—_
Eank and trust companies—_______—
*
.
———
OF
AREAS
-
Odd-lot sales by dealers (customers' purchases)—
Number of orders..
:
6.44
————.v,..————
ESTATE
—Month
COMMISSION:
.Number of shares..——
51,0^3
NEW CAPITAL ISSUES IN GREAT BRITAIN-
STOCK
Y.
113,837
4.77
——_
(10)
(200)
AND
SPECIALISTS
112,411
94
.June 15
AND
52,800
83,286
'
"
——__——————
—•_•!
(24)
(15)
220,548
STOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODDDEALERS
114,744
60,896
*90,794
AVERAGE
(25)
203,058
252,035
INDEX—192G-36
AVERAGE—100
LOT
103,494
118,113
___—
YIELD OF
STOCKS—Month of May:
COMMON
MIDLAND
OIL,
311.2?
'■
•
WEIGHTED
Railroad
.
(tons)—
(tons) ———________:
Percentage of
*330.4
96,825
113,513
—
•
■
S.
tUtilities
Orders
343.9
(1935-1»30=
INC.
-.';'t
A. (tons of 2,000 pounds).;
copper
Stock at end of period
(tons of 2,000 pounds).—
i.
U.
Refined
200
NATIONAL
$250,000
to customers—
Deliveries
!
Industrials
COMMODITY INDEX-
MOODY'S
$387,000
2.81
—June 19
Groups—
$931,153,000
492,953,000
438,200,000
299,228,000
138,972,000'
$364,000
May——!—
of
n-
2.89
3.49
Aa_i::::::::::::::::
Industrials Group
BRADSTREET,
&
Copper production in U. S. A.—
Crude (tons of 2,000 pounds)
Relined (tons of 2,000 pounds)
■2.87
'
Public
—
_—
(000's omitted)——
100)—Month
2.33
3.17
June 19
—
—_——_____
2.68
June 19
June 19'
Railroad Group
'
of
—$1,267,995,000$1,053,434,000
698,456,000
558,498,000
569,539,000
494,936,000
359,566,000
264,860,000
209,073,000
230,076,000
COPPER INSTITUTE—For month of May:
MOODY'S BOND YIELD DAILY AVERAGES:
V. S. Government Bonds
-
*
OUTSTANDING—FED¬
PAPER
May 31
.
Average corporate.
9
v
RESERVE BANK OF NEW YORK—
of
DUN
120.02
Industrials Group
•
n
m
■
CONSUMER PURCHASES OF COMMODITIES—
116;8C
June 19
Utilities Group
8
53
107.9b
107.98
~
Public
•
J
"——
—
-J——————
COMMERCIAL
115.21—;
***
113.89
114.46
110.34
114.85
114.08
June 19
■——
"
*73
8
.
115.63
—.——
Railroad Group
*17
»
188
EN¬
Month
i—
construction
and municipal
Federal
102.27
June 19
—
construction
Private
State
S. Government Bonds———
20
—
construction
S.
Public
U.
*61
-
May:
Total
MOODY'S BOND. PRICES DAILY AVERAGES:
Average
64
55'
160
"82
—
J
*60
215
40;
-
"
—
CONSTRUCTION
17
9f
,
46
82
———r
203
*48
50
development
NEWS-RECORD
125
T3
*55
'
public-service enterprises—
GINEERING
*
Louis) -at__
*274
-52
—
water
public
2T
130
facilities,!—_—i
ENGINEERING
CIVIL
12.000c
;____
York)
at—
(New
Lead
.June 13
.___
at__
All other
584-
*44
66
institutional...
Conservation; and
.
refinery at_-_
Export refinery.
.
-
*697
298
.
—
—.—
Miscellaneous
<E, & M. J. QUOTATIONS);
Electrolytic copper—
6
44
j.:1';
_—
Highways
Sewer
METAL PRICES
39
197
813
—
—
Military., and' naval
2B>
*40
*214
5
.
Other nonresidential building
,'V
"
109
262:
*29
42
————
and
Hospital
Finished steel (per lb.),
95
*283
227
1—
Industrial
Educational
10-
'■
—_—
building
Nonresidential
29"
22
31
—-
building
15/
34
113
—.—
—_
construction
Residential
.
21
15
300
—,—
—
30'
26
36
private—
oilier
Public
FAILURES
—1
-'1
109
35
27
Other
6,011,674
6,559,218
—
66
;
132
14
Telephone and telegraph——
public utilities
'
80
26
27
:———
Railroad
gDISON ELECTRIC INSTITUTE:
-
73
92'
38
i-i
utilities
Public
Electric
83
institutional-——
Farm construction
302
318
45
142
—————
Miscellaneous
_June
13
125
47
recreational——
and
82
274'
*150
130
—
—
and
1,694-
*407
161
(nonfarm)
—
Educational
SYS¬
—
433
.
Social
$2,278 '
'
■
Hospital
DEPARTMENT
—
Warehouses, office and loft buildingsStores, restaurants, and garages——
Other nonresidential building
Religious
(U. S. BUREAU OF MINES):
COAL OUTPUT
!__„
alterations.—_________
and
$296,036,000
120,577,000
V
June 14
rr-~
J
Federal
millions):
i._
—
building (nonfarm)
dwelling units.i
!
42,794,000
June 14
municipal-!
•Bituminous
$206,897,000
86,320,000
June 14
__
(in
May
construction
construction
New
S.
U.
of
OF
Residential
NEWS-
RECORD:
Private
Month
—
new
Private
CIVIL ENGINEERING .CONSTRUCTION
S. DEPT.
CONSTRUCTION—U.
963,094
604,040
$24,267,510
,
IN DI¬
SECURITIES
TREASURY MARKET TRANSACTIONS
GUARANTEED
AND
RECT
OF U. S. A.—Month of May.
Net
Net
sales
—;
——.——
purchases
.
——————
Round-lot sales by dealers—
Number of
shares—Total sales——
sales
Short
.
Round-lot
.
June
2
.June
——
2
113,630
197,790
259,080
175,300
U3~630
19V,790
259~080
175~306
2
.June
—.
—.
—
————
Other sales
STATES. EXPORTS AND IMPORTS—
BUREAU
OF CENSUS —Month
of
April
UNITED
Number of shares—
June
—
2
455,370
272,640
450,750
190,010
—
U.
S. DEPT. OF LABOR—
—June 12
—
Grains
197.5
182.2
197.1
157.0
181.3
184.7
168.7
263.5
262.6
259.3
222.5
136.9
187. J.
187.7
275.4
Net
debt
Computed
and
metal
—
materials
products
—
.T,
—
Chemicals
and
allied
products
+Not available,
274.4
239.2
170.8,
171.2
148.6
PORTING
182.4
182.9
183.3
136.8
CULTURE—As of June
June 12
138.7
138.5
138.4
$255,122,431
5,782,277
—
$254,747,776 $256,3.0,179
6,955,474
4,463,670'
$247,292 302
$251,906
5^
189.0
189.3
189.5
172.0
201.9
2.199%
2.247'/o
2.243 ,o
23,801,000
23,263,000
22,977,000
705,175,000
682,196,000
750,666,000
132.8
June 12
.
226.8
*227.2
227.4
357.3
358.9
358.9
t
.June 12
140.1
140.9
143.6
114.4
lilncludes 524,000 barrels of foreign crude runs.
.-.
$249,340,154
170.7
June 12
,
—
—
275.4
June 12
materials
Building
Lumber
AND
_
—
annual rate
June 12
and foods
—
160.7
June 12
products
and lighting
—
STATES GROSS DEBT DIRECT
of May 31
General fund balances
June 12
Meats
commodities other than farm
Textile
-
164.9
181.4
—June 12
—
—
•Revised.
181.9
—June 12
.—
—
Livestock
Foods
181.7
198.0
Farm products
Met? Is
—
As
All commodities
Fuel
;
GUARANTEED—(000's omitted):
1926=100:
All
—-——
Imports
UNITED
WHOLESALE PRICES NEW SERIES
omitted):
(000's
Exports
purchases by dealers—
WINTER
WINTER
RYE
PRODUCTION
BOARD
WHEAT
—
CROP
RE¬
U. S, DEPT. OF AGRI¬
1
(bushels)
PRODUCTION — CROP RE¬
U. S. .DEPT. OF AGRI¬
PORTING BOARD
CULTURE—As of June
•Revised
tNot including
1
(bushels)
stocks of American Tel. & Tel.
46
(2594)
The Commercial and Financial Chronicle
Securities
Thursday, June 21, 1951
.
it REVISIONS THIS WEEK
in
Now
..
•
INDICATES
ADDITIONS
i
h
,
"I
New Registrations and
Anvil
June 11
common
writer
C.
N.
June 11
Brand, Inc., High Point, N. C.
(letter of notification) 36,300 shares of class "A"
stock (par $5). Price—$8.75 per share. Under¬
Kirchofer &
—
Proceeds—For
publicly
Arnold
Associates
working capital.
Inc., Raleigh,
Offering—Made
Associated
Telephone Co., Ltd.,
Monica, Calif.
Santa
June 11 filed 350,000 shares of 5%
cumulative preferred
Price and Underwriter—To
stock, 1947 series (par $20).
be supplied by amendment.
Proceeds—To pay off bank
loans incurred for property additions and
improvements.
Athletic
Films, Inc., Los Angeles, Calif.
June 13 (letter of
notification) 8,250 shares of common
stock.
Price—At
par
($1 per share).
Underwriter—
None.
Proceeds—For working capital. Office—1746 No.
Las Palmas Avenue, Los
Angeles, Calif.
Bishop Oil & Exploration, Inc.
11 (letter of
notification) 30,000 shares of capital
stock
(no pai).
Price—$10 per share.
Underwriter—
George E. Franklin, Jr.
Proceeds—For well drilling
and development.
Address—Not available.
June
Blue Anchor
June
15
Packing Co., Inc.
(6/25)
of notification) 15,687 shares of com¬
(par $1) and 37,575 shares of preferred stock
Price—At par. Underwriter—None. Proceeds
(par $1).
purchase additional machinery and for working
capital. Office—Blue Anchor Road, Blue Anchor, N. J.
—To
Central
Fibre
June 11 (letter of
stock
common
Products
Co., Quincy, III.
notification) 3,000 shares of non-voting
(par $5).
Lily-Tulip Corp., New York (7/5)
June 15, filed 75,000 shares of common stock (no par)
to be offered for subscription by. common stockholders
on
or about July 5 on" basis of one share for each five
shares held; rights to expire about July 19.
Price—To
be supplied by amendment. Underwriter—Blyth & Co.,
Inc.
Price—At the market.
Under¬
selling stockholders.
Pro¬
Office—901 S. Front
St., Quincy, 111.
June
(B. F.) & Co., Inc.
(letter of notification) 2,000
15
Price—At
writer—None,
will act
June
15
not
but
less
than
$40
Hornblower
broker.
as
Durham
&
Proceeds—To
Aircraft Service,
a
shares
of
share.
per
Weeks,
capital
Under¬
New
York,
selling stockholder.
Inc., N. Y.
(letter of notification) 50,000 shares of common
par
($1 per share).
Underwriter—
stock.
Price—At
None.
Food
Machinery & Chemical Corp.
New
on
shares of
common
stock
(par $10)
employees. Price—To be based on mar¬
Stock Exchange. Underwriter—None.
York
Proceeds—For general corporate purposes.
Fruehauf Trailer
,
,
Co., Detroit, Mich.
June 15 filed 115,000 shares of common stock
(par $1), to
be "offered to certain employees
pursuant to stock
op-
*
tion
plans." Price—At 85% or 95% of the highest sale
price of the stock on the New York Stock Exchange on
the day on which the
Underwrtier—None.
Gulf
Coast
(par 10 cents).
development
Office—733
June
13
Underwriter—National
market.
Corp., New York.
Ronson Art Metal
option is delivered to the employee.
Proceeds—For working capital.
Western
Oil
Co., New York.
Proceeds—For oil produc¬
Office—916
common
stock (par 10 cents).
Price—25 cents
share.
Underwriter—H. M.-Herrin & Co., Seattle,
Wash., and others. Proceeds—For development of Liv¬
ingston mine. Office—Scott Bldg., Wallace, Idaho.
per
Investors
June
Mutual,
Inc., Minneapolis, Minn.
20 filed
3,000,000 shares of capital stock.
At market. TProceeds—For investment.
&
Co., New York.
Price—At par (one cent per share). Underwriter
Proceeds—For development and rehabilitation
of mines.
Office—126 So. Tejon St., Colorado
stock.
Springs,
Colo.
None.
Corp., Jackson, Miss.
June 8 (letter of
notification) 2,727 shares of
preference stock (par $10) and 2,727 shares of
Price—
-*
cumu-;
stock (par $100) and 1,500 shares of
stock (par $100). Price—At par. Underwriter—?
Proceeds — For initial payment on vessels and
other
corporate
Address
purposes.
O.
P.
—
Box
1178, 1
Juneau, Alaska.
Alhambra
Nov.
->ar
•>
Gold
Mines
Corp.,
Hollywood,
Calif.
1 filed 80,000 shares of common stock.
Price—At
($1 per share).. Underwriter—None. Proceeds—Fnrl
,.
further
Amendment necessary.
Sea
to be
offered
in
units
of mica claims.
Ad¬
574, Las Vegas, N. M.
Snacks, Inc., Blue Anchor, N. J. (6/25)
(letter of notification) 54,099 shares of common
of
one
($1 per share).
Underwriter—.
complete construction of building;
par
Proceeds—To
Co., Denver, Colo.
June 13 (letter of notification) 120,000 shares of
mon stock
(par $1) to be first offered to present
and
mon
class A stockholders at rate of 0.094 of
$2.25
per
mine
development.
share.
or
common
Underwriter—None.
Office—701
U.
S.
com¬
com-'
share
a
stock held.
Price—,
Proceeds—For?
National
Bank;
Building, Denver, Colo.
Smith &
Co., Ltd., Washington, D. C.
(letter of notification) 1,000 shares of capital(no par). Price—$100 per share. Underwriter—
12
None.
Proceeds—To Raymond
Southwestern
June
P. Smith, President, the
Office—452
Associated
filed 17,500
ferred stock (no par).
15,
Washington
/
Building,.
;
common
common
share
of
Price—$11 per unit. Underwriter—
Proceeds—For general corporate
purposes and for
development of automobile washing mop. Office—1508
No. Mill St., Jackson, Miss.
None.
•
,
Telephone Co.-
/
:
Building Products Co.
(letter of notification) 900 shares of 6% cumula-^
preferred stock.
Price—At par ($100 per share).
June 19
tive
Underwriter
chines
—
None.
Proceeds
and
building products.
Camden, N. J.
Video
15
—
To
manufacture
(letter of notification)
stock to be first offered to
record June 21
on
a
pro
ma¬
'«•
1,200,000 shares of
common
com¬
stockholders of
rata basis; rights expire July 10.
Price—At par (10 cents per share).
Underwriter—None,
but unsubscribed shares may be offered through Tellier
&
Co., New York.
fice—229 West 28th
Vidicam
Proceeds—For working capital.
Of¬
Street, New York, N. Y.
Corp., N. Y. (6/25)
June 18 (letter of notification) 100,000 shares of class A.
(non-voting) common stock (par $1).
Price—$3 per
Underwriter
equipment and
and
expansion
New York,
repay
—
None.
Proceeds
—
To
purchase
bank loans and for working capital
program.,
Office—240
East
39th
Street,
N. Y.
Walker Vitamin
Inc.
June 15 (letter of notification) 2,000 shares of
non-voting
class B common stock (par 25 cents).
Price—$5.50 per
share.
Underwriter—Cohu & Co., New York.
Proceeds
—To Myron Walker, Chairman and
President, who is
the selling stockholder.
Philadelphia
Pittsburgh
San Francisco
Private IVires
to
all
Western Reserve Life Insurance Co.
June 12 (letter of notification) 10,000 shares of common
stock (par $10) to be offered for
subscription by present
stockholders at rate of one share for each two shares held.
Chicago
Cleveland
Price—$20 per share.
Underwriter—None.
Proceeds—
financing expansion program.
Office—1108 Lavaca
Street, Austin, Tex.
For
offices
1
.
,,,
common
stock
(no par)//
mon
company is offering 334,935 shares to com- '»
stockholders of record June 12, 1951, at rate of
new
one/
share
for
each
ten
shares
held, with an oversub-,
scription privilege; rights to expire on June*29. Price—
$27.50 per share./' Underwriter^—None.
Proceeds—To{
system subsidiaries in financing their property
ex-/
Statement effective June 12.
,.•?>
★ Appalachian Electric Power Co. (6/26)
May 23 filed $17,000,000 of first mortgage bonds, due
June J,'1981.
petitive
Underwriter—To be determined by com- ;
Probable bidders:
Halsey, Stuart
bidding.
Co. Inc.;
Kuhn, Loeb & Co. and Union Securities Corp*;
(jointly); The First Boston Corp.; Harriman Ripley &i
Co., Inc.
proceeds—To repay bank loans and for new,
construction. Bids—To be received up to 11 a.m. (EDT):
June
on
26
at
30
Church
Street,
Statement effective June 13.?
,
New York
/.
.
N.
8,
Y
,
it Arden Farms Co., Los Angeles, Calif.""
June 11 filed 55,000 shares of $3 cumulative and
partici¬
pating preferred stock (no par) of which 54,444 shared!
of
first to be offered
share
one
for
to preferred
each
shares to be offered
4%
stockholders at rateo
shares
publicly.
held;
unsubscribed'
Price—To be supplied by;
Underwriter—None.
Proceeds—To
repays
loans.
V
Armstrong Rubber Co., West Haven, Conn.
May 21 (letter of notification) 1,000 shares of 4%%
n
*
cu¬
mulative convertible preferred stock (par $50) and 1,0001
shares of class A common stock (no par). Price — The)
preferred at par and the common at $25 per share, i
Underwriter—Gruntal & Co., New York. Proceeds—Toe
Frederick
Machlin, Vice-President of the
Ashland
Oil
company.
.
&
Refining Co., Ashland, Ky.»
(letter of notification) 1,000 shares of common"
May 21
(par
stock
$35
$1).
Price—At
share).
per
the
Underwriter
working capital.
Ky.
market
None.
—
(approximately«Proceeds
June
to
12
be
filed
offered
(7/3)
300,000 shares of capital stock
to
stockholders
Price1—$30
ceeds—To be
For
1
■,"?
unsubscribed
Oct. 5.
—
Office—1409 Winchester Ave., Ashland,
★ Bank of Nova Scotia, Toronto, Canada
shares
per
added
to
to
share.
of
record
June
7
(par $10) r
30,
1951, 5
offered
after /
Underwriter—None.
Pro-tj
be
publicly
general funds.
*
\
it Bigelow-Sanford Carpet Co., Inc.
V,
May 16, filed 100,000 shares of 4%% cumulative pre-' j
ferred stock, series of 1951 (par $100), of which 39,604% I
shares
are
issuable
preferred stocK
Products,
share)/
(owner
which
with
Pictures
(par $2).
per
.
May 24 filed 368,428 shares of
Office—426 Market St.,
Corp. of America
or
...
_
amendment.
general corporate funds.
$15
15.1% of outstanding shares).
198,000 shares,
..
bank
Underwriters—Paine, Webber, Jackson & Curtis
& Webster
Securities Corp., both of New
York, and Rauscher, Pierce & Co., Inc., Dallas, Texas.;
Proceeds—To retire $1,500,000 of bank loans and the.-
stock
common
(approximately
of
are
shares of $5.50 cumulative pre¬
Price—To be supplied by amend-^
Stone
to
market
~
^American Natural Gas Co.
and
added
Corp., Springfield, Mass.
Proceeds—To Allen & Co.
merit.
share.
Boston
the
pansion programs.
Mines
for each share of class A
Bosch
Underwriter—None.
assist
and for working capital.
Silve^ Bell
Price—At
of
Price—At
None.
American
May 17 filed 98,000 shares of
June 18
mon
each class of stock.
New York
share
one
stock.
common
preferred
None.
*
Proceeds—To selling stockholder.
Proceeds—For development
dress—P. O. Box
June
Le-Rad
par)
share of
development of mine and for working capital./
Statement
effective
May 29 through lapse of time/
Inc*
Threefold
Mines, Inc., Colorado Springs, Colo.
(letter of notification) 7,500,000 shares of capital
(no
lative
Miguel Mining, Milling & Smelting Co., Inc.,,
Las Vegas, N. M.
June 11 (letter of notification) 100,000 shares of com-:
mon stock.
Price—At par ($1 per share). Underwriter—
Price—
—None.
stock
to be offered in units of
one
common
San
balance
Isabella
June 11
and
,;Vj"
&
(letter of notification) not in excess of 5,400
shares of common stoqk. (par $1).
Price—At market
about $18.50 per share).
Underwriter—Ross Blanchard
June
Co.
Petroleum Bldg., Oklahoma City, Okla.
Idaho Custer Mines, Inc., Wallace, Idaho
June 8 (letter of notification) 800,000 shares of non¬
assessable
(par 25 cents)
preferred
Ferry & Terminal Co., Inc.
May 24 (letter of notification) 1,500 shares of 6%
18
selling stockholder.
Washington, D. C.
tion.
Filings
Alaska
Proceeds—For investment.
Works
Office '
M *
—
Manufacturing Corp., Inc., Pascagoula,
Misssissippi
June 12 (letter of notification) 200 shares of common
capital stock.
Price—$100 per share.
Underwriter—
None.
Proceeds—For
general
corporate purposes in V
manufacturing road flares. Address—Box 207, Pasca¬
goula, Miss.
June
of/
share of *
Proceeds -L. For
$1.50 per unit.
Underwriter — None.
Proceeds
To
purchase equipment and material. Office—1018 Title &
Trust Building, Phoenix, Ariz.
-
Research
R.
>
Securities
None.
—
one
milling equipment and other corporate purposes.
Phinney Avenue, Seattle, Wash.
of
Proceeds
deposits.
other
Underwriter
share
one
purchase of
—5905
stock
com¬
& Research Corp.
40,717 shares in First Mutual Trust Fund.
stock
Klein
and
manganese
offer
may
each
Facilities, Inc., Phoenix, Ariz.
{
June 4 (letter of notification) 193,800 shares
of 6% pre¬
ferred stock (par $1) and 193,800 shares of common
Securities
filed
Research
of
for
Air
25 cents per share.
—
discretion
bonus
Previous Registrations and
Security Bldg., Phoenix, Ariz.
National
June 13 (letter of notification)
299,760 shares of common
stock:. Price—At par ($1: per share).
Underwriter—
V.
Price
Underwriter—Weber-Millican Co., New York.
—For
-
•
.
their
a
preferred stock.
construction of
stock.
working capital.
Office—56-15
Woodside, L. I., N. Y.
13 filed 100,000
to be offered to
ket
stock
mon
Proceeds—For
Northern Boulevard,
June
buildings.
toward
in
as
.
,
Drakenfeld
stock
applied
be
Magma King Manganese Mining Co.,
Phoenix, Ariz.
June 11 (letter of notification) 1,200,000 shares of
writer—Bosworth, Sullivan & Co., Denver, Colo.
ceeds—To two
Proceeds—Jo
new
Price—At
(letter
stock
mon
Directors
Columbia, S. C.
common
June 19.
on
Western States Copper Corp., Seattle, Wash.
June 11
(letter of notification) 119,980 shares of 6%
(letter of notification) 9,800 shares of preferred
stock (par $10) and 20,000 shares of common stock (no'J cumulative preferred stock (par $1) and 124,980 shares
of common stock (no par).
Price—Of preferred, at par
par). Price—For preferred $19 per share and for com¬
mon
plus accrued dividends (five annual dividends in ar^
$1 per share.
Underwriter—None.
Proceeds—To
rears); and of common at a price to be determined later.
increase surplus and capital. Office—1309 Sumter Street,
Life Insurance Co. of South Carolina
Filings
ferred share
000 shares of
to
present
to
holders
of
26,403
shares
of
6%d
the basis of \xk shares for each pre- f
Public offering of the additional 60,- i
preferred stock has been deferred due !
on
heid.
rew
market
conditions.
Underwriters—Harriman/1
Ripley & Co., Inc.; Kidder, Peabody & Co., and F. S. »
Moseley & Co. Proceeds—For general corporate pur- j
poses."
Brown
Shoe
Co., Inc., St. Louis, Mo.
(6/27)
June 7 filed $11,000,000 of sinking fund debentures, due
;
July 1, 1971. Price—To be supplied by amendment. Un-'j
derwriters—Goldman, Sachs & Co. and Smith, Barney &
Co., of New York. Proceeds—To retire 34,330 outstanding shares of $3.60 preferred stock (requiring about $3,600,000) and the balance for general corporate purposes.
|
j
Volume 173
M
Number 5022
.
.
The Commercial and Financial Chronicle
.
Brown
Shoe
Co., Inc., St. Louis, Mo.
224,187 shares of common stock (par $15),
124,187 are to be offered in exchange for Wohl
vShoe Co. capital stock on a
2^-for-l basis. The remain¬
ing 100,000 shares represent shares which may be or
it Falls Creek Mining Co., Seattle, Wash.
May 24 (letter of notification) 400,000 shares of common
June 7 filed
of which
June
Blue Anchor
March
Public
5 filed 300,000 shares of convertible
preference
(par $100). Price—To be supplied by amendment.
Underwriter—Kidder,
Peabody
Sea
&
Co.,
New
York.
Proceeds—For additions and improvements to plant and
equipment. Offering date postponed.
.
Statement effective June
program.
Farmers Mutual Telephone Co., Madison,
Service, Inc
Debentures
Inc
Common
(EDT)__Equip. Tr. Ctfs.
Common
May 9
(letter of notification)
None.
Proceeds
June 26,
1951
11
Fine
Cleveland
Bonds
Electric
Bonds
stock
11:30
Debentures
(EDT)
a.m.
Products
Underwriter—
telephone system.
Corp., Augusta, Ga.
Proceeds—To
July
on
General
redeem 15,000 shares of preferred
Office—827 Telfair Street, Augusta,
15.
^..Bonds
Foods Corp.
(6/28)
$35,000,000 of 25-year sinking fund de¬
bentures, due July 1, 1976. Price—To be supplied by
amendment. Underwriters—Goldman, Sachs & Co. and
June
Appliance Corp....
Montana -Dakota Utilities Co.
13.
Canam Copper Co., Ltd., Vancouver, Canada
April 20 filed 200,000 shares of capital stock. Price—At
Price—$35 per
Georgia.
Illuminating Co.
Noon (EDT)
Mission
rural
(letter of notification) 15,000 shares of common
(par $2).
Price—$17 per share.
Underwriter—
None.
(EDT)
a.m.
rebuild
Office—Cerro Gordo, Madison, Minn.
stock
Appalachian Electric Power Co.
To
—
Minn.
2,600 shares of common
stock and 1,200 shares of preferred stock.
share for common and $50 for preferred.
June 4
each two shares held on June
12; rights
expire July 5. Price—$10 per share.
Underwriter—Blyth
& Co., Inc., and Hooker &
Fay, both of San Francisco,
Calif. Proceeds—To pay
part of cost of plant expansion
'
Finance
Snacks,
Vidicam Pictures Corp
share for
new
*
4, Wash.
.Common & Pfd.
Preferred
Southern Pacific Co., noon
it Calaveras Cement Co.
May 23 filed 118,066 shares of common stock (par $5)
being offered to common stockholders on basis of one
'
Price—25 cents per share.
Underwriter—None,
Proceeds—To Philip Seymour Heath, the selling stock¬
holder.
Office—418 Second & Cherry Building, Seattle
25, 1951
Packing Co., Inc
Property Income Corp
Burlington Mills Corp.
stock
stock.
NEW ISSUE CALENDAR
•have been purchased under the
company's stock option
plan for key employees, including certain officers and
directors. Proceeds—For general corporate purposes.
•
47
(2595)
*
7
filed
Lehman
Brothers
of
New
York.
Proceeds—To
finance
_
($1
par
share). Underwriter—Harry M. Forst.
exploration and development work.
per
ceeds—For
Pfizer
Pro¬
June
Brown
it Carrier Corp.
May 24, filed 216,504 shares of
Preferred & Com.
27, 1951
Shoe Co.„ Inc
Debentures
Chesapeake & Ohio Ry.^
common stock (par $10)
^ being offered common stockholders of record June 12,
1951, at rate of one new share for each three shares hel<$;
rights
(Chas.) & Co., Inc.__,
Equip. Trust Ctfs.
Southern New England Telephone Co
Common
United
Common
Utilities, Inc
...
to
expire on Jiype 26. Price—$19.50 per share.
^Underwriter—Harriman Ripley & Co., Inc., and Hemp¬
June
hill, Noyes, Graham, Parsons & Co., New York. Proceeds
|—To help finance the construction and equipment
of
'
General
a
Hawaii
new building and for
other general corporate purposes.
Statement effective June 12.
Chevron
C.l.T.
Financial Corp.,
tq be
reserved
New York
issuance
for
Bank
<
New
Lily Tulip
For
—
(EDT)
July 10,
due
Minnesota Power &
Statement
»
—
To
/ ,y
Power
Bonds
.
1951
Consolidated
for
10
Textile
Exchange offer to
Statement effective March
2.
(par $20)
employees stock purchase plans, viz; 50,000 shares to
employees of company and wholly-owned subsidiaries
through elections to purchase at 90% of the last price on
York
Stock
Exchange;" and 180,000 shares to
the company and wholly-owned
executive employees of
subsidiaries
on
the
through
of
the
last price
Exchange.
Continental
March
options at 95%
Corp., Brazil, Ind,
writers—Sills,
Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
or
working • capital and general corporate purposes,
emporarily deferred.
Cornucopia Gold Mines (7/10-21)
14 (letter of notification) 229,800 shares of
ay
tock
common
(par five cents) to be offered for subscription by
tockholders
of record
June 30, 1951, on a one-for-five
oversubscription privilege; rights to expire
ne
Oct. 1.
Price—To be determined by directors, but
ot exceeding $1 per share.
Underwriter—None. Pro-
asis, with
an
eeds—For
ank
working capital.
Bldg., Spokane, Wash.
Office—824
Old
National
Underwriter—None.
Prlct
Proceeds—To pur-
hase debentures of Statler Dallas
any
will construct Dallas hotel.
ornoration
orrmerce
under
to
March 29
representing
share of
one
one
sponsorship
secure
Co., Inc., which comBusiness—A non-profit
of
construction
ffective June 15.
shares of
.y
:
;
.
.
companies.
panies represents l/24th of
tificates
of
of
common
the
Trust,
stock
in
op&A% debentures due 1061 and
stock (par 25 cents) to be
$1,000 of debentures and 80 shares of
supplied by amendment. Underwriter
Proceeds
applied to cost of acquisition, construction and
—To be
facilities
of
and
other
for
corporate
two
Dallas
of
Chamber
hotel.
Statement
cent
—
Hotels
Corp.,
Chicago,
III.
a
unit of voting trust cer¬
unit contains one share
24 Cuban companies.
the
27.
exchange
stock
(par $5)
of Hotel
Wal¬
of
basis; offer expires
Dealer-Manager—Carl M. Loeb, Rhoades
on
on
a
Co., New York.
in
for
their
share-for-share
•
.
&
.
it International Life Insurance Co.
$1,200,000 special investment contracts to
March 30 filed
be sold in units of $500
each by regular licensed insur¬
—
Cudahy Packing Co.
filed $10,000,000 sinking, fund debentures due
April 1, 1966. Price — To be supplied by amendment.
Proceeds—To
reduce bank loans
by $9,000,000, and the balance added
working capital. Offering—Indefinitely deferred.
Culver
Corp., Chicago, III.
127,364 shares of common stock (par $5).
equivalent to approximately 95% of the
net asset value of all shares of stock outstanding imme¬
diately prior to the public offering plus a commission
of 50 cents per share to security dealers. Underwriters—
23
filed
Price—To
Dealers
be
may
be underwriters.
Proceeds
ments in railroad and kindred securities.
act date not yet
—
For
invest¬
Offering—Ex¬
determined.
Drayson-Hanson, Inc., Los Angeles, Calif.
4 (letter of notification) 50,000 shares of common
(par 40 cents). Price—$1.20 per share. Under¬
writer—Edgerton, Wykoff & Co., Los Angeles, Calif.
stock
purchase real property and plant.
Products
Co., Chicago, III.
May 9 filed 35,000 shares of common stock (par $2.50)
to be issued only upon exercise up to and including Oct.
22, 1955, of options to purchase such shares granted on
Oct. 23, 1950, to certain employees
(including certain
officers and directors) of the company. Pricq—$13.78 per
share.
Underwriter—None. Proceeds—For general cor¬
purposes.
Statement
ance
agents of the company and 60,000 shares of common
stock (no
par) to be issued in payment of said contracts.
Proceeds—To increase capital and surplus.
Office—Aus¬
tin, Texas.
Intra State Telephone Co., Galesburg, III.
May 24 (letter of notification) 2,800 shares of common
stock to be offered for subscription by stockholders of
record May 21. Price—At par ($100 per share). Under¬
writer—None.
Proceeds—For operating expenses.
Of¬
fice—100 No. Cherry Street, Galesburg, 111,
it Iowa Public Service Co.
effective May
29.
(7/9)
June 8 filed $5,000,000 of first mortgage bonds, due July
1. 1981.
Underwriters—To be determined by competi¬
tive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Otis & Co.; Kidder, Pea¬
body & Co.; Glore, Forgan & Co., A G. Becker & Co.
Inc. and Wm. Blair & Co. (jointly); Harriman Ripley
& Co., Inc.; Salomon Bros. & Hutzler; Equitable Secu¬
rities Corp.; Lehman Brothers, Bear, Stearns & Co. and
L. F. Rothschild & Co. (jointly).
Proceeds—To repay
bank
loans
and
for
ceived up to 11 a.m.
June
porate
such stock
common
holdings
Corp.
June
March 23
Oct.
dorf-Astoria
com¬
$2 per unit. Underwriter — None, but Jay H.
Schafrann, 20 Pine St., New York 5, N. Y., will act as
servicing agent.
Proceeds—For drilling and explora¬
tion expenses and working capital.
'
June 1, the 24 Cuban companies filed 1,500,000 shares
each of their respective common stocks to be issued to
the Cuban-Venezuelan Oil Voting Trust.
to
offered to holders of
com¬
of
pur¬
Organized to construct and operate
electric furnace steel plant and rolling mill.
Business
par
which
each
and
•
Corp., Owensboro, Ky.
common
offered in units of
Each share of the 24
stock in 24
mon
Ekco
13 filed $1,500,000 of 2% debentures due 1965.
At face value.
Voting Trust
filed 1,500,000 units of voting trust certificates
Proceeds—To
Cosmopolitan Hotel Co. of Dallas, Tex.
ec.
>
River Steel
Green
Hilton
Oil
Underwriter—Halsey, Stuart & Co. Inc.
Car-Nar-Var
5
(letter of notification) 150,000 shares of com¬
(voting) stock (par $1). Price—$2 per share. Under¬
mon
Cuban-Venezuelan
Price
to be purchased in open market and offered
pursuant to
New
(with an oversubscription privilege); rights
expire on July 3. Price—$13 per share. Underwriters—
Kidder, Peabody & Co.;. Allen & Co.; and Townsend,
Dabr.ey & Tyson. Proceeds—For construction expend¬
now
Continental Can Co., Inc.
May 24 filed 230,000 shares of common stock
the
common stock (par $10)
being offered to preferred stockholders of record June
15, 1951 on basis of three shares for each four shares
of common to which the preferred stockholders will
become entitled pursuant to amended plan of recapi¬
March 30 filed 153,252 shares of common stock
shares of Bates stock.
expire June 29.
May 29 filed 104,094 shares of
^
•.
\
Co., Inc., New York
Dec. 27 filed 220,000 shares of
capital stock (par 10 cents),
offered in exchange for 200,000 shares of common stock
of Bates Manufacturing Co.
(Consolidated now owns
51,400 shares, or approximately 13% of the 391,500 out¬
standing Bates shares) on basis of 11 shares of Consoliated
Golconda Mines Ltd., Montreal, Canada
April 9 filed 750,000 shares of common stock.
Price—^
At par ($1 per share).
Underwriter—George F. Breen,
New York.
Proceeds—For drilling expenses, repayment
of advances and working capital. Offering—Date not set.
poses.
Bonds
'
stock
—Equitable Securities Corp., Nashville, Tenn.
(EDT)
Co
.
common
be filed by amendment. Under¬
Glore, Forgan & Co., New York. Proceeds —
For working capital and general corporate purposes.
Withdrawal—Registration statement withdrawn June 15.
New filing expected to be made covering $3,000,000 pf
convertible preferred stock (par $50).
stock. Price—To be
•p
•
159,142 shares of class B
Price—To
320,000
""
-•
filed
28
June 5 filed $4,000,000
\C
Bonds
September 11,
Alabama
purposes.
writer—
installation
short-term bank loans and for
Withdrawal — Registration statement
withdrawn June 8.
1951
a.m.
general corporate
itures.
July 24, 1951
prepay
capital.
Bonds
1951
....
United Gas Corp. 11:30
Underwriter—Eastman, Dillon & Co., New York.
working
Light Co..
July 23,
for
and
talization
Common
Mississippi-Power Co
loans
$1).
par
Washington Gas Light Co.......Bonds
Cigar Corp., New York
March 9 filed 50,000 shares of cumulative
preferred stock,
series of 1951 (no par). Price—To be
supplied by amend-'
Proceeds
Bonds
1951
July 16,
it Consolidated
ment.
(EDT)
Cornucopia Gold Mines
Square, Cleve¬
June 26.
on
a.m.
accounts receivable.
it Green Mountain Power Corp.
Common
Iowa Public Service Co. 11
by com'petitive bidding. Probable bidders Halsey, Stuart & Co.
Inc.; Dillon, Read & Co. Inc.; Blyth & Co., Inc.;
White,
lWeld & Co.; The First Boston
Corp.; Glore, Forgan &
Co. and W. C. Langley & Co.
(jointly); Equitable Se'curities Corp. Proceeds—For new construction. Bids—
'To be received by
company at 75 Public
land 1, Ohio, up to noon
Common
July 9, 1951
general corporate
Cleveland Electric
Illuminating Co. (6/26)
May 23 filed $25,000,000 of first mortgage bonds
June 1, 1986* Underwriter—To be determined
(Canada)
Corp
of the stock.
'purposes.
effective June 8.-
Scotia
July 5, 1951
under the "restricted stock option plan for
key employees
corporation and its subsidiaries." Price—Not to
Proceeds
of Nova
York, Chicago & St. Louis RR._Eq. Trust Ctfs.
common stock (no par)
exercise of options
.of the
Underwriter—None.
Common
rm
July 3, 1951
upon
^be less than 95% of the fair market value
Bonds
1951
United Gas Corp...
Underwriter—Willis E. Burnside & Co., Inc., New
up option and develop propOffering—Indefinitely postponed.
.J^ne 4 filed 150,000 shares of
(EDT)
..Common
June 29,
Proceeds—To take
Gerties.
a.m.
N
it Glenmore Distilleries Co.
Dec.
(Territory of), 10
Northrop Aircraft, Inc
Petroleums, Ltd., Toronto, Canada
per
share.
Debentures
and
it General Public Utilities Corp.
May 16 filed 504,657 shares of common stock (par $5) be¬
ing offered to stockholders at rate of one share for each
15 shares held as of June 14; with rights to expire on
July 9:
Price—$16.50 per share.
Underwriter—None,
but Merrill Lynch, Pierce, Fenner & Beane will act as
clearing agent for the company.
Proceeds—To repay
bank
28, 1951
Corp
Minneapolis-Honeywell Regulator Co.. .Preference
March 14 filed 900,000 shares of common stock
(par $1)
to be offered "as a
speculation." Price — 50 cents
York.
Foods
increased inventories
new
construction.
(EDT)
on
Bids—To be re¬
July 9.
Jersey Central Power & Light Co.
Feb. 21 filed $1,500,000 first mortgage bonds due in
1981.
Proceeds—For expansion program.
Bids—Only one bid
was received by company
on March 27, from Halsey,
Stuart & Co. Inc., which was returned unopened. Offer¬
ing—Postponed i n d e f i n i t el y.
Statement, effective
March
14.
Jersey Central Power & Light Co.
Feb. 21 filed 40,000 shares of cumulative preferred stock
(par $100). Proceeds—From sale of preferred, together
proceeds to be received from the sale of 350,000
with
1
Continued
on
page
48
48
The Commercial and Financial Chronicle
(2596).
Continued from page 47
additional
common
shares
'
to
t
Utilities
Public
General
Corp., the parent, will be used for new construction.
Bids—Only one bid, from Union Securities Corp. and
Salomon Bros. & Hutzler (jointly), was received March
27y which was returned unopened. Statement effective
March 14. Amendment—On May 8 SEC granted an ex¬
emption from competitive bidding. Preferred may be
privately placed, but reported,
temporarily
aban¬
A Northrop Aircraft, Inc.
filed 125,000
G
June
Price—To
Ohio
150,000 shares of pfd, stock
(par $100),
doned.
Underwriters—To be determined by competitive bidding.
Probable bidders: Morgan Stanley & Co.; Lehman Bro¬
thers and
May 25 filed 123,000 shares of common stock (par 33^0),
of which 9,276 shares will be offered for the account
of Raymond B. Kropp (Executive Vice-President and
Treasurer) and 113,724 shares first to stockholders of
Bear, Stearns & Co. (jointly); W. C. Langley
Co.; Glore, Forgan & Co. and White, Weld & Co.
(jointly); The First Boston Corp. Proceeds — For con¬
struction program. Bids—Indefinitely postponed. Were
to have been submitted up to 11:30 a.m. (EDT) on May 2,
shares held; rights expire on June 25.
Price—
$4 pei .share. Underwriters—Gearhart, Kinnard & Otis,
Inc., and L. D. Sherman & Co., both of New York; and
Morgan & Co., Los Angeles, Calif.
Proceeds—To be
common
added to
working capital.
Link-Belt Co., Chicago, ill.
May 31 filed 20,826 shares of
stock
common
(par $5)
to be offered to "a selected group of officers and employees of the company and its subsidiaries. Price—$33
per share
(subject to change).
Underwriter — None.
Proceeds—For working capital.
Mayfair Markets, Los Angeles, Calif.
May 24 (letter of notification) 5,000 shares of preferred
stock (par $50) and 5,000 shares of common stock (no
par) to be offered in units of one share of preferred
and one share of common stock.
Price—$60 per unit.
iUnderwriter—None. Proceeds —For working capital.
Office—4383 Bandini Boulevard, Los Angeles 23, Calif.
McGraw
(F. H.) & Co., Hartford, Conn.
(letter of notification) 4,650 shares of common
stock
(par $2).
Price—$9 per share.
Underwriter—
Granbery, Marache & Co., New York. Proceeds—For
working capital.
May 17
Mercantile Acceptance Corp. of California
May 18 (letter of notification) 4,881 shares of first pre¬
ferred stock.
Price—At par ($20 per share).
Under¬
writer—Guardian Securities Corp.
Proceeds—For gen¬
•
eral corporate purposes.
v
Old
June
May 29 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment. UnderwritersEquitable Securities Corp., Nashville, Tenn., and T. J
Eaney &, Sons and Womelctorff & Lindsey, Little Rock.
Ark. Proceeds—To repay bank loans and for property
additions.
Minneapolis-Honeywell Regulator Co.
(6/28)
June 7 filed 160,000 shares of cumulative convertible
preference stock (par $100). Price—To be supplied by
amendment. Underwriter—Union Securities Corp., New
York.
Proceeds—For working capital and to expand
manufacturing facilities.
' *"t"y
r ^
.
Minnesota Power & Light Co. (7/10)
7 filed $10,000,000 of first mortgage bonds, due
July 1, 1981. Underwriters—To be determined by com¬
June
.
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Shields & Co; and Equitable Securities Corp.
(jointly); The First Boston Corp. and Glore* Forgan &
Co. (jointly); Otis & Co.; White, Weld & Co.; Lehman
Brothers and Drexel & Co. (jointly); Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Coffin & Burr, Inc. Proceeds—For ex¬
pansion
program.
Bids — Expected
to
be
received
July 10.
Mission Appliance Corp. (6/26)
5 filed
$1,250,000 of convertible
V
June
sinking fund
debentures, 6% series, due July 1, 1963. Price—At par.
Underwriters—Paul H. Davis & Co., Chicago, 111.', and
Lester & Co., Los Angeles, Calif. Proceeds—To retire
bank loans and for working capital.
«
oAr Montana-Dakota Utilities Co. (6/26)
June 1 filed $3,000,000 of first mortgage serial bonds
due June 1, 1952 to 1971, inclusive.
Underwriters—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co., Inc.; Blyth &
Co., Inc., Mer¬
rill Lynch, Pierce, Finner & Beane and
White, Weld &
Co. (jointly); Salomon Bros. & Hutzler and Dick &
Merle-Smith (jointly). Proceeds—To finance acquisition
of property at Billings, Mont. Bids will be received
by
+
<
the company at The New York Trust
Co., 100
New York 15, N. Y., up to 11:30 a.m.
(EDT)
Broadway,
on
June 26.
1
units
Proceeds—For
payment
of
debt
and
purchase of
ma¬
chinery.
Office—Male Street, Wind Gap, Pa.
★ New England Telephone & Telegraph Co.
May 23 filed 777,850 shares of capital stock being_offered
to stockholders of record
for each two. shares
held;
June 8
in ratio of
one
share
rights to expire July 10. The
American Telephone &
Telegraph Co., parent, will sub¬
scribe for 536,071 of the shares. Price—At
par ($100 per
share). Underwriter—None. Proceeds—To teduce out¬
standing
June 4.
■
temporary
borrowings.
Statement
effective
North American Acceptance
Corp.
March 20 (letter of
notification) 15,000 shares of 60-cent
cumulative convertible preferred stock
(par $5).
7"*
Price
T&er share* Underwriter—Michael Investment Co.,
Provi^er\ce' R- f Proceeds—For working capitaL
fmeriiig—Postponed temporarily.
common
stock at $4
of
operations.
Street, Phoenix, Ariz.
development and
Office—1217
W. .Jef¬
who
is the
selling
Southern New England Telephone Co.
of
one
stock
new
27, 1951, in the ratio of one share for each eight
held; rights to expire July 20. Price—At pat.
Underwriters — None.
Proceeds — To repay advances
from parent company,
v
per
convertible into three shares of
common stock).
Price
Underwriter—None.
Proceeds—For working
Office—69th Street Terminal, Upper Darby,
-
Potlatch Yards, Inc., Spokane, Wash.
May 22 (letter of notification) 20,000 shares of common
stock (par $5).
Price—$15 per share. Underwriter —
Of¬
Texas
Producers Corp. of Nevada
June 7 (letter of notification) 75,000 shares of common
stock (par $1). Priced—If private, $2 per share, and if
Proceeds—To be invested
v
-
■
•
•
•••""»
Proceeds
May 29 filed 34,399 shares of 4.40% cumulative convert
ible preferred stock (par $100) being offered to commo
stockholders of record June 18, 1951, on the basis of on
share of preferred for each 25 shares of common stoc
(par $5); rights expire on July 2. Price—At par. Under_
writers—Lehman Brothers, New York, and Harris, HaJ"
.& Co. (Inc.), Chicago, 111. Proceeds—From sale of stocl
together with funds to be received from private place
irent of a long-term note issue currently being nego
tiated through Lehman Brothers, will be used to retir
outstanding 4*4% cumulative convertible preferred stoc
and for working capital.
(letter of notification) $300,000 of 4V2% con¬
vertible debentures of 1967 (each $100 principal amount
(letter of notification) 2,900 shares of 8% nonPriee—At par ($100 per
'
A Sutherland Paper Co.
11
preferred stock.
-Underwriter—None.
before May 31, 1956. Proceeds
Philadelphia, Pa.
"memberships in the 1951 plan," effec
to be offered to employees upon thei
for membership; a maximum of 111,00
shares of common stock (no par) ^hich it is anticipate
may be purchased by the trustees of the plan during th
period July 1, 1951, to June 30, 1952; and 193,262 share
of common stock Which "it is anticipated may be offere
for possible public sale by certain selling stockholder
during the same period," at market about $73 per share
Underwriter—None. Statement effective May 21.
Philadelphia Suburban Transportation Co.
cumulative
on or
Sun Oil Co.,
May 3 filed 11,000
tive July 1, 1951,
becoming eligible
working capital and for
expansion of production facilities.
share).
before May 31, 1953; $15 pet share
—None, but Bache & Co. will act as broker.
To Addison F. Vare, the selling stockholder.
$7,000,000 to complete expansion program
already underway and the balance of about $20,000,000
(6/25)
;,1
Sterling Engine Co., Buffalo, N. Y.
April 27 (letter of notification) an aggregate of not t
exceed 16,000 shares of common stock (par 10 cents)
Price—At market (about $2.25 per share). Underwrite
ceeds—About
Property Income Cofp., New York
:
-
general corporate purposes. Statement effective
June 4.
will be available for additional
June 8
or
share thereafter and
supplied by amendment.
publicly, 'at the market price between~$2 and- $3 per
share. Underwriter—None. Proceeds—To develop costs
and leases and acquire additional properties.
Office—
1224-1225 Milam Bldg., San Antonio, Texas.
share on
—For
Underwriter—F. Eberstadt & Co., Inc., New York. Pro¬
None.
Proceeds—For general corporate purposes.
fice—909 W. Sprague Avenue, Spokane, Wash.
.
thereafter and on or before Nov. 30,1954; and $16.50 per
Proceeds—To
capital.
Pennsylvania.
•
Spiegel, Inc., Chicago, III.
t
/ " v x
May 2 filed 85,850 shares of common stock (par $2)
being issued to holders of cumulative preferred stock
upon exercise of stock warrants on basis of one share of
common stock for each share of preferred stock at $13.50
share for each 10 shares held; rights to ex¬
To be
American Telephone & Telegraph
Co., and for new construction.
(par $1), the latter issue to be of¬
—
(6/27)
shares
stockholders of record June 26 in ratio
pire July 10. Price
Proceeds—
June
filed
common
Ltd.
June 8 filed 400,000 shares of capital stock (par $25), to
be offered for subscription to stockholders of record
Schwartzmah, the selling stockholder.
common
Mines
commissions, exploration and development expenses,
and working capital.
(Chas.) & Co., Inc. (6/26)
150,000 shares of cumulative convertible
second preferred stock (par $100) and 444,015 shares of
new
Uranium
For
* Pfizer
fered to
c,v
Si.
State
Optionee—Robert Irwin Martin of Toronto.
Offering—Indefinitely
^
f
(Canada) h:
April 9 filed by amendment 384,000 shares of capital
stock.
Price — At par ($1 per share).
Underwriter*
Pepsi-Cola Bottling Co. of Wash., D. C., Inc.
May 11 (letter of notification) 5,000 shares of common
stock (par 10 cents). Price—50 cents per share. Under¬
writer—None, but Ferris & Co., Washington, D. C., will
6
Dealer-
purposes.
—
June
share held.
payable and to reduce loans, and for general corporate
general corporate purposes.
broker for over-the-counter sales.
class A
for each
share. Underwriters—Tyson &. Co. and"E. L. Aaroh
Co., New York.
Proceeds—To pay assumed debt 'df
Sightmaster Television Corp., for payment of accounts
Pennsylvania Citrus Groves, Inc.
I
June 4 (letter Of notification) 149,800 shares of common
stock.
Price
At par ($2 per share).
Underwriter —
Graham & Co., Pittsburgh, Pa. Proceeds—To purchase
land in St. Lucie County, Fla., and plant thereon fruit
trees. Office—Pittsburgh, Pa..
as
stock
&
May 31, 1951.
postponed.
Bernard B.
Proceeds—To be applied toward
per
Peabody Coal Co.
March 26 filed 160,000 shares of 5^% prior preferred
stock (par $25). Price—To be supplied by amendment.
Underwriter—A. C. Allyn & Co., Inc. Chicago, 111. Pro¬
act
Colo.
Boston Corp., New York;-an<$
Bosworth, Sullivan & Co., Inc.*
Sightmaster Corp., New Rochelle, N. Y.
Las Vegas, Nev.
Jan. 24 filed 200,000 shares of common stock. Price—At
Par ($1 per share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill
ceeds—For construction program.
and
June 4 (letter of notification) 600,000 shares of common
stock (par five cents).
Price—Estimated at 25'Cents
May 10 filed 200,000 shares of capital stock (par $4).
Price—At the market (based on quotations on New York
Stock Ezchange at time of sale, approximately $21.25
per share). Underwriter — None. Proceeds—To J. Paul
in Mexico and for
B
South
company,
First
Co.
•
Pacific Western Oil Corp.
President of the
basis*
one-for-ten
^Realty Co., Denver, Colo.*
*
<Jr
June 7 (letter of notification) 2,000 shares of capital
stock (par 25 cents).
Price—$6 per share. Underwriters
—Ralph S. Young, Colorado Springs, Colo; J. A. Hogle
& Co., Salt Lake City, Utah; and Garrett-Bromfield &
Co., Denver, Colo. Proceeds—For working capital. Office
—937 U. S. National Bank Bldg., Denver, Colo.
*
preferred share for each five common shares held; rights
to expire June 28.
Price—$31.75 per share.
Under¬
writer—Hornblower & Weeks, New York.
Proceeds—
For working capital. Statement effective June 13.
Getty,
a
construction program. Statement effective June 12.
of class
May 25 filed 96,000 shares of 5% convertible second pre¬
ferred stock, series A (par $30) being offered to com¬
mon stockholders of record June 13, 1951, at rate of one
stockholder. Statement effective
'
Pan American Milling Co.,
on
Manager—Aetna Securities Corp., New York.
Oswego Falls Corp.. Fulton, N. Y.
A
12
★ Reading Tube Corp., Long Island City
June 5 filed $1,859,256 of 20-year 6% sinking fund de¬
bentures due July 1, 1971, and 66,402 shares of class B
stock (par 10 cents) to be offered about July 2 in ex¬
change for 265,608 shares of outstanding class A cumula¬
tive and participating stock (par $6.25) on the basis of $7
principal amount of debentures and one-fourth of a share
Oro Flame Mining Co., Phoenix, Ariz.
May 24 (letter of notification) 328,500 shares of common
stock to be issued to present stockholders and 25,000
shares to be publicly offered. Price—75 cents per share.
Underwriter—None.
Proceeds—To carry out program
ferson
The
&
both of Denver,
per
Olympic Radio & Television, Inc.
16 (letter of notification) 8,800 shares of com¬
mon stock (par $1).
Price—At the market. Underwriter
—None, but Van Alstyne, Noel & Co., New York, will
act as broker. Proceeds—To two selling stockholders.,
—At par.
be offered in
share of
—
Boettcher
April
lative preferred stock
(par
of one share of each class
unit.
to
writers
share for
each $100 of debentures owned.
Price—At par (in de¬
nominations of $100, $500 and $1,000 each). Underwriter
—None.
Proceeds—For, working capital. Office—3219
Rhode Island Avenue, Mt. Rainier,. Md.
*
one
June
rights to expire June 28; and 24,911 shares &Q
employees of company. Price—$22.75 per share. Under¬
■
chase
of record
with
The latter will entitle holders thereof to pur¬
attached.
June
$1)
stockholders
Colony Finance Corp., Mt. Rainier, Md.
(letter of notification) $250,000 shares of 6%
debentures with stock purchase warrants
National Bangor Slate Co., Wind
Gap, Pa.
June 8 (letter of notification)
40,000 shares of common
stock (par 50 cents) and 40,000 shares of 8% non-cumu¬
qf stock.
Price—$4.50 per
Underwriters—None; directors will direct sales.
;
subordinated
A MidSouth Gas Co., Little' Rock, Ark.
-
A
Public Service Co. of Colorado
T
May 24 filed 274,027 shares of common stock (par $1.Q)#
of which 249,116 shares are being offered to
common
Sc
record June 15, 1951 at rate of one share for each seven
<>:■
Public Finance Service, Inc., Phila, Pa.
(6/25}j
April 30 (letter of notification) $250,000 of 6% cumula¬
debentures, 1950 series to be offered to present
debenture holders. Price—At par (in
denominations of
$100 each).
Underwriter—None.
Proceeds—For addi¬
tional operating capital. Office—18 West Chelten
Ave*
Philadelphia 44, Pa.
tive
Edison Co.
A Kropp Forge Co., Cicero, <111.
■
N. Y.
Staats
March 30 filed
Thursday, June 21, 105U
of
be
R.
.
in income-producing real estate properties in the
^city
New York.
Office—154 Nassau St., New York! 8*
(6/28)
shares of Common stock (par $1).
supplied by amendment.
Underwriters—
Co., Inc., Los Angeles, Calif.,, and
Paine, Webber, Jackson & Curtis, New York, and ten
other firms.
Proceeds—For working capital;
William
..
-
Southeastern
Gas
Co., Bellviile,
Tex.
May 16 (letter of notification) 19,434 shares of commo
stock to be offered to common stockholders throug
transferable warrants.
Price — At par ($5 per share;
Underwriter-*—None. Proceeds—For' working* capital.Thorkon Co., Atlanta, Ga.
May 21 (letter of notification) 15,000 shares of 5% cumd
preferred stock (par $10) and 30,000 shares d
stock (par 25 cents) to be offered in-units d
one share of preferred and two shares of common stoci
Price—$12 per unit. Underwriter—F. E. McMichael j
lative
common
Co.,
HartforjJ Gity, Ind. Proceeds—For working capital
Number 5022
Volume 173
The Commercial and Financial Chronicle
.
bank loans and $3,000,000 from other
to be used to finance construction~ of a rayorr
tire yarn plant at Coosa Pines, Ala., and for
working
with
capital.
basis of one new share for each ten shares held,
oversubscription privilege; rights to expire on
on
an
May
Gas Pipe Line Co., a subsid¬
(7/24)
Co.
&
Corp, and
June
»—At
Uranium
100,000
Mining Co.,
shares
of
Mich.
stock.
Price
Underwriter—Titus Miller &
Co., Detroit, Mich.
Proceeds — For exploration and
drilling of mining claims.
Office—23660 Van Eyke
Avenue, Van Dyke, Mich. Offering—Expected late this
par
($1 per share).
*
;
,
month.
it Victoreen Instrument Co., Cleveland, O.
May 22 filed 374,000 shares of common stock (par $1),
of which 221,000 are to be issued by the company and
153,000 for account of John A. Victoreen, Chairman of
the Board. Price—$4 per share.
Underwriters—Barrett
Herrick & Co., Inc., New York, and A. H. Vogel & Co.,
Detroit, Mich. Proceeds—For new equipment and work¬
ing capital. Y
"...
Weisfield's,
Inc.,
,
,
;
t
Western Osage
-v
•
r
May
16 J.
American
.
Beaunit Mills,
une
8 it
was
Neither the timing nor
new
Stuart & Co. Inc.; The First Boston Corp.; Glore,
Inc.
Edison Co. of New York,
for authority
refunding
gage
be
to issue and sell $25,000,000
mortgage
bonds due 1967.
Offering—Postponed.
Consumers Public Service Co. of
June 6, it was
200,000
reported early registration is expected of
of common stock.
Traditional under¬
shares
writer: McCormick
Glenmore
April 23 it
file
a
$50
par
&
Co., Chicago, 111.
Distilleries Co.
announced company expects shortly to
was
statement covering 60,000 shares of
preferred stock and to withdraw
registration
convertible
statement
covering
159,142
shares
class B
of
common
stock
(par $1); see a preceding column.
Proceeds—For
working capital and general corporate purposes.
,
Hahn
June 7,
Aviation
it
was
Products, Inc., Phila, Pa.
announced company (in addition to sale
of 5,000 shares of common stock filed with SEC) proposes
to issue and sell another issue of approximately 29,651
shares of
stock
common
year.
Office
Street, Philadelphia 33, Pa.
(par $1) later this
—2636 North Hutchinson
June
8, the Missouri P. S. Commission authorized com¬
to issue and sell 1.500 shares of 5% preferred
(par $50).
stock
Proceeds—To repay $66,232 of notes and for
working capital.
Delaware
River
Development Corp.
(N. J.)
preliminary permit to the corpo¬
investigation of the proposed development of
issuance of a one-year
a
for
hydroelectric project on the Delaware River in New
Jersey, Pennsylvania and New York, estimated to cost
$47,000,000.
Early last year, it was announced that the
(in units of $100
"proposed project would be financed through the issu¬
ance
of $28,200,000 of bonds, $14,100,000 of preferred
stock, $4,700,000 of
convertible common stock and 100,000
shares of no par value common
announced stockholders will vote June 26
Denver & Rio Grande
n
stock.
Western RR.
.
April 12, Wilson McCarthy,..President,..stated
to prevailing market* conditions* the company
i
(Territory of)
12, it
was
to 10
up
000
'y
(6/28)
that bids
announced
at Bankers Trust
will be
received
Co,, 16 Wall Street, New York, N. Y.,
on June 28 for the sale of $5,000,-
(EDT)
a.m.
of
public improvement bonds, series A, issue of
1951, dated July 2, 1951 and due serially from July 2,
to 1971, inclusive.
Probable bidders: The Chase
National Bank of the City of New York; Bankers Trust
Co., New. York; Bear/Stearns & Co.; and Smith, Bar¬
ney & Co.; Z
>■;
^
'
■
June
stockholders
18
Y
Refrigerator Co. ;
it Kussman
issuance
approved
and
y
sale of
23,000 shares of 4% preferred stock, series B (par $100),
Mutual
Life
Penn
used to redeem
Insurance
Co.
The
proceeds will
16,000 outstanding shares of series A
preferred stock (held by the same insurance company)
and the remaining $700,000 added to working capital.
Power Co.
Idaho
June
6
reported
company
considering
issuance
of
$15,000,000 of additional first mortgage bonds. Will prob¬
ably be placed privately. If competitive, probable bidders
may include Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.,
Lazard Freres and The First Boston Corp.
(jointly);
Equitable
Salomon
Corp.;
Securities
Bros.* &
Hutzler
Kidder,
and
Union
Peabody
&
Securities
Co.;
Corp.
(jointly); Harriman Ripley & Co., Inc. Proceeds will be
for additions and improvements to the company's
properties.
I-T-E
Circuit
Breaker Co.
May 28 it was announced stockholders have approved
proposals to increase the authorized indebtedness of th$
company to $3,500,000 from $1,500,000, and the author¬
ized but unissued preferred stock from 15,000 shares to
30,000 shares, par
$100.
~
,
it Kansas City Power & Light Co.
June 12, Harry B. Munsell, President, announced com¬
hopes to issue and sell within the next two years
$12,000,000 of bonds, $10,000,000 of additional preferred
stock and $8,000,000 of additional common stock to fi¬
nance
its construction program for
1951-1952.
Stock¬
holders
u
that due
Ms post-
poned to an undetermined date the taking of bids-for
will
vote
July 11
on
increasing the authorized
preferred stock from 200,000 to 350,000 shares and the
authorized indebtedness by $12,000,000.
Probable bid¬
ders
May 23, Chief Examiner Frank A. Hampton of the FPC
filed a recommended decision which would order the
ration
Hawaii
pany
Brookfield, Mo.
pany
approving issuance and sale of 100,000 shares of $5
umulative preferred stock
(no par). Underwriters—
obably White, Weld & Co.'-and Kidder, Peabody &
o. YPF*ceeds-^-From sale of - stock,
together with, $15,-
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Salo¬
Bros. & Hutzler; The First Boston Corp.
used
Corp.;'Merrill Lynch, Pierce, Fenner & Beane and White.
Weld
&
Co. (jointly).
Proceeds — To redeem a like
amount of Westchester Lighting Co. 3V2% general mort¬
Inc.
through 1954.
of this
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Morgan Stanley & Co.; The First Boston
(jointly);
equipment and for expansion.
.
mon
be
applied to New York P. S, Commis¬
of first
bonds, series H, due May 1,
1981 (in addition to $40,000,000 series G bonds filed with
the SEC on March 30). Underwriters—To be determined
Telephone Co.
new
17 stockholders of Colorado & Southern Ry. apa program providing for simplification of that
company's corporate structure and for the refunding of
the indebtedness of the company and its subsidiaries.
This program calls for a new issue of $20,000,000 first
mortgage bonds due 1981 of Fort Worth & Denver City
Ry. and the transfer to the latter of stock and other obli-,
gations of seven Texas companies.
Probable bidders:
proved
to
financing have yet been deter¬
Probable bidders for bonds or debentures: Hal¬
nature
and
April 25 it was announced company may soon file a
letter of notification with the SEC covering $300,000 of
-For
Fort Worth & Denver City Ry.
May
period calls for the expenditure of about $450,-
sion
each). Underwriter—Tellier & Co., New Yorkr Proceeds
decision has been reached
no
possible financing in this connection. Traditional
underwriter: Smith, Barney & Co., New York.
1954
.
Consolidated
President Lines, Ltd.
convertible bonds. Price—At par
Interstate
March 23 company
Lo the Government or to the Dollar interests.
6%
Colorado
Forgan & Co.; Morgan Stanley & Co.
May 27, Charles Sawyer, Secretary of Commerce, pro¬
posed the public sale to the highest bidder of the stock
of this company now held by the Department of Com¬
merce.
The proceeds would be placed in escrow until
the Courts decide whether the stock rightfully belongs
Alaska
of
an.
will be required
v
expected to
Sept. 11. Registration—About Aug. 10.
opened on
stock
000,000, of which it is estimated that $200,000,000 will
be provided out of cash resources at the end of 1950.
This means that additional capital of about $250,000,000
Co.; Union Securities Corp. and Equitable Se¬
curities Corp. (jointly); Kidder, Peabody & Co.; The
irst Boston Corp.; Lehman Brothers. Proceeds—For ex-
Bids—Tentatively
of
May 22 Charles Y. Freeman, Chairman, announced that
the company's scheduled construction program for the
& Co., Inc.; Harriman Ripley & Co., Inc.;
program.
group
holdings of the Union
Commonwealth Edison Co.
Drexel &
ansion
added, however, that
June
Poston, President, announced that com¬
early offering of $10,000,000 first mort¬
Underwriters—Last issue of bonds were
placed privately on July 1, 1948 through Dillon, Read &
Co. Inc., New York.
If competitive, probable bidders
may include Halsey, Stuart & Co.
Proceeds—For ex¬
plans
6, it was stated that company contemplates issuance
and sale of $10,000,000 first mortgage bonds. Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
Salomon Bros. & Hutzler
Co.
any
Co.
bonds.
Feb.
and
Gas
B.
pany
Prospective Offerings
Shields & Co.
Corp.
gage
sey,
& Co.; Blyth
Interstate
it was reported that the
Columbus & Southern Ohio Electric Co.
the
/I.
the
in
be
(531,250 shares) will probably be sold publicly in August
or September.
^rl<f
r«.
mined.
(9/11)
He
•
18
Securities
Nev.
Alabama Power Co.
Chemical
April 5, Leland I. Doan, President, stated that the com¬
pany plans to spend $65,000,000 on plant expansion in
the current fiscal year ending May 31, 1951, and expects
to spend somewhat more in the following fiscal year.
/ Glass Fibres, Inc.
expects to
company
by competitive
Colorado
June
1951-54
Oil Co., Inc., Las Vegas, Nev.
bonds,
mortgage 3% -4%
,
„
May 28 filed 1,000,000 shares of common stock (par 20
cents). Price—To be supplied by amendment. Under¬
writer—None.
Proceeds—For drilling of exploratory
well in Elko County,
reported
pansion program.
Seattle, Wash.
(letter of notification) 5,244 shares of capital
stock.
Price—$53 per share. Underwriter—None. Pro¬
ceeds—For working capital. Office—Ranke Bldg., 1511
Seattle 1, Wash.
was
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler
(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
$49,988,000 of 4% non-callable consolidated first mort¬
gage bonds due July 1, 1952, and to redeem $13,747,000
first and refunding mortgage 4^4% bonds, series D, due
Sept. 1, 1962.
The remainder will go towards property
improvements, etc.
May 21
Fifth Avenue,
it
determined
Van Dyke,
common
2
income
Offering—Expected next month.
on
early in 1952 with a new issue
of approximately $70,000,000 of first mortgage bonds,
due 1981, of which about $65,000,000 will be sold ini¬
tially. Price—Not less than par.
Underwriter—To be
body & Co., New York. Proceeds—For plant expansion
and to repay bank loans.
filed
(6/27)
market late this year or
share for each three shares held about June
Lake
Ry.
Chicago & Western Indiana RR.
Ellis
rights to expire
about July
10.
Price — To
supplied by amendment. Underwriter—Kidder, Pea-
7
Ohio
was
„
Utilities, Inc., Abilene, Kansas (6/27)
June 5 filed 199,451 shares of common stock (par $10)
to be offered initially to common stockholders in the
Van
it
Chicago District Pipeline Co.
May 22 it was announced that this company (a sub¬
sidiary of Peoples Gas Light & Coke Co.) may find it
necessary to
construct a 30-inch pipeline from Volo,
111., to near Mt. Prospect, 111., at a cost estimated at
approximately $1,650,000.
The amount and character
of the financing are not ndw known.
Bond financing in
March, 1950, was placed privately.
United
June
6
Lake
Explorations (Western) Ltd.
15, it was reported company plans early registra¬
with
SEC
of
500,000 shares of common stock.
Dow
reported company plans issuance of $6,equipment trust certificates. Probable bidders:
Halsey, Stuart Co. Inc.; Salomon Bros. & Hutzler. Bids
—Expected to be opened June 27.
(porporate purposes. Statement effective June 13.
be
filed with the
600.000
Co., both of New York.
Proceeds—To advance
$495,000 to Cassels United Stores, Inc., a wholly-owned
subsidiary, to be used to discharge a bank loan in that
amount, and the remainder will be used for general
26;
was
natural gas pipeline system
by
Chesapeake &
&
one
a
in North and South Carolina. Esti¬
share.
H.
D.
application
build
areas
Salt
Undciwriter—Carl M. Loeb, Rhoades & Co.,-New York. *
Proceeds—For development and exploration expenses.'
Corp., Charlotte, N. C.
proposed facilities is $3,595,295, to be
the sale of first mortgage bonds and the
junior securities. Underwriters may include
S. Dickson & Co., Charlotte, N. C.
R.
Statement-effective June 11.
Securities
fourth amended
certain
financed
itUnited Stores Corp.
3 .-*■
May 25 filed 103,170 shares of $4.20 non-cumulative sec¬
ond jpreferred
stock
(par $5) offered for subscrip¬
tion' by holders of second preferred stock
of record
June 13 on basis of one share for each 10 shares held;
per
Natural Gas
issuance of
June
Price—$9.37 y2
a
serve
&
Dome
tion
mated cost of the
ployees"- under an incentive plan. Price—At market (to
net company about $54,275,000.
Proceeds—For general
ratio of
Sept. 1, 1951, in U. S. funds. Refunding likely to be
auspices of the Canadian Government.
to
bidders:
both due Jan. 1, 1993.
•
Feb. 20
ic United States Steel Corp., Hoboken, N. J.
May 21 filed 1,300,000 shares of common stock (no par)
"to be offered from time to time to certain key em¬
Underwriters—Union
Denver
Ry.
June
SEC for authority to
Street, New York, N. Y.
rights to expire on June 27.
$3,000,000 helicop¬
'
28 it was stated company has about $48,000,000
4JA% guaranteed mortgage gold bonds coming due
Rector
to 11:30 a.m. (EDT) on July 24 at Two
corporate purposse.
National
Carolina
turn, will use the funds to pay $7,000,000 of 3% promis¬
sory
notes owned by United Gas Corp., and the re¬
mainder for its construction program. Bids—To be re¬
up
a
under the
(jointly); First Boston'Coirp.; Harriman Ripley & Co, Inc., and Goldman,
Sachs & Co. (jointly). Proceeds—To purchase securities
of United Gas Pipe Line Co., its subsidiary, which, in
ceived
construction of
Fort Worth, Texas.
near
be
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Kuhn, Loeb & Co. and Bear, Stearns
& Co.
(jointly).
Proceeds — Together with treasury
funds, to redeem on June 1, 1951, $35,062,200 oustanding
first mortgage 3%-4% bonds, series
A, and $8,666,900 of
Probable
-
of
Equitable Securities Corp.
Co. and
plant
on
Probable bidders: Halsey, StuStanley & Co., White, Weld &
Inc.; Morgan
.
,
May
May 25 filed $59,060,000 of first mortgage and collateral
trust bonds due 1971.
Underwriters—To be determined
by competitive bidding.
.
purchase of $40,000,000 first mortgage bonds to be
May 1, 1951, and to mature on May 1, 1981. Un-<
derwriters—To
Corp.
stockholders approved a proposal to borrow
on bonds to mature serially. The proceeds will
Canadian
Corp.
'
•
.
used to finance
be
ter
of new construction.
are'
28
$2,500,000
iary/ which, in turn, will use the proceeds to pay costs
United Gas
.
49
dated
Bell Aircraft
July 19 will be mailed on June 29. Price—To be supplied
by amendment. Underwriter—None. Proceeds—To pur¬
chase securities of United
the
sources,
May 25 filed 1,065,330 shares of. common stock (par $10)
to be offered to common stockholders of record June 27,
1951/
(2597)
from
000,000
(6/29)
United Gas Corp.
)
..
for
preferred stock:
Glore, Forgan & Co. and W.
Langley & Co. (jointly); Smith, Barney & Co.; The
First Boston Corp.; White Weld Si Co., Shields Si Co.
C.
and
Republic Co. (jointly); Harriman Ripley &
Central
Co., Inc.; Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Union Securities
Corp. and Stern Bros. Si Co. (jointly). Probable bidders
for common stock; Lehman Brothers; Glore, Forgan &
Probable bidders for
& Co., Inc.;
White, Weld & Co.; Shields & Co. and Central Republic
Co. (jointly); Glore, Forgan & Co.; Smith, Barney & Co.;
Kuhn, Loeb & Co.; Union Securities Corp. and Salomon
Bros. & Hutzler (jointly); Lehman Brothers; and Bear,
Co.; Harriman Ripley
bonds:
Halsey, Stuart
Co., Inc.
& Co. Inc.; Blyth
:
y. ■
.
r
,,
-
•
;
;
-
.; /r
~
Continued
on page
50
50
(2598)
The Commercial and Financial
Chronicle
•
Continued from page 49
(jointly); The First Boston Corp.; Equit¬
able Securities Corp.; Harriman Ripley & Co., Inc.
Kansas
May
24
Gas &
Nuclear Instrument &
To
Electric Co.
Murray F. Gill, Chairman of the board,
an-,
be
that the company's present construction
pro¬
calls for expenditures of more than $8,000,000 in
1951.
To
finance
part of the expansion
program,
com¬
sell $5,000,000 of first mortgage bonds. Under¬
be
determined
by competitive bidding.
bidders:
Halsey, Stuart & Co. Inc.; Union
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane
pany may
writers—To
Probable
.
and Kidder, Peabody & Co. (jointly).
There is a pos¬
sibility that company may also decide to refund its
outstanding $16,000,000 first mortgage 3%% bonds due
1970
(held
by
of
group
a
insurance
companies)
bonds due 1978.
$5,000,000 first mortgage 3y8%
Probable
New York.
•
underwriter:
Goldman, Sachs & Co.,
working capital.
Proceeds will be added to
Mead Corp.
June
it
8
was
announced
that
construction
$21,000,000 kraft container board mill
is scheduled to be
under way at
tional underwriters:
&
near
of
early date.
an
a
new
Rome, Ga.,
Tradi¬
Drexel & Co. and Harriman
Ripley
Co., Inc.
about
year
To be determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co and
Blyth & Co. Inc. (jointly); White, Weld & Co. and
Lehman Brothers
and
Co.
(jointly); Harriman Ripley & Co. Inc.
Union Securities Corp. (jointly);
Glore, Forgan &
and W. C. Langley & Co. (jointly);
Proceeds—For
construction.
.
Michigan-Wisconsin Pipe Line Co.
May 29, SEC authorized extension for one year, or
until July 1, 1952, of
maturity of $20,000,000 bank loans
and
the
stock
issuance
to
the
and
sale
American
of 30,000
Natural
shares of
common
Gas
Co., parent, for
$3,000,000, to provide an equity base for contemplated
future permanent financing which
may include issuance
and sale of $12,000,000 of first
mortgage bonds.
Pre¬
vious debt financing was placed
privately.
If competi¬
tive, bidders may include: Halsey, Stuart & Co. Inc.;
The
First
Boston
Corp.; Harriman Ripley & Co., Inc.;
Glore, Forgan & Co.
k Mississippi Power Co.
(7/23)
sought SEC authority to issue and
sell $4,000,000 of first
mortgage bonds. Underwriters—
To be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Union Securities Corp.
and Equitable Securities
Corp. (jointly); Salomon Bros.
June
13
Co.
(jointly);
Lehman Brothers.
Proceeds—For
struction program. Bids—Will be received
July 23.
•
vote
on
subscribe for and purchase additional
common
stock.
Pacific Power & Light Co.
power
$4,770,389 as of Sept. 30, 1950,
plus or minus book adjustments, and the facilities to
be built are estimated to cost
$708,774. To finance the
transactions, the company plans to issue and sell $2,000,of
preferred stock and $3,000,000 of first mortgage
bonds
(latter registered with SEC—see a preceding
column). Underwriters—(1) for preferred stock: prob¬
ably Blyth & Co., Inc. and Merrill Lynch, Pierce, Fenner
& Beane.
•
New York, Chicago & St. Louis RR.
(7/3)
June 19, it v/as announced
company will invite bids to
be received, on July 3 for the
purchase from it of $1,-
950,000 equipment trust certificates to be dated
July
15, 1951, and to mature in 30 equal semi-annual instal¬
Jan.
15,
1952
Halsey,
Bros. &
to
July 15, 1966, inclusive.
Stuart & Co. Inc.; Salomon
Hutzler; Harriman Ripley & Co., Inc.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.).
New York State
Electric & Gas Corp.
May 4, Joseph M. Bell, Jr., President, announced that the
company's $66,500,000 construction program for the three
years through 1953 involves new
financing of $41,500,000
in addition to the $10,500,000
provided thus far this year
through the sale of 2.80% first mortgage
bonds, in ac¬
cordance with contracts entered last
August. Traditional
underwriter: The First Boston
Corp., New York.
•
Niagara Mohawk Power Corp.
June 8, company applied to FPC for
this
tional
year
license for
common
early 1952 about $15,000,000
stock to finance
part of its
or
construction program scheduled for
bidders: Merrill
Probable
Lynch,
Beane; Kidder, Peabody & Co. and
(jointly); Morgan Stanley & Co.
to
raise
totaling
(jointly).
Stock would be first offered to stockholders,
Brothers, Union Securities Corp. and Dean
Witter & Co.
probably underwriting.
June
a
pro¬
of addi¬
$150,000,000
1951, 1952 and 1953.
Pierce, Fenner &
White, Weld & Co.
be obtained from
P.
8, the
company was authorized
Commission to issue and sell to
S.
000,000
and
to
of
3V4%
by the
Missouri
the
public $20,debentures, due 1971,
sinking
fund
60,000 additional shares of
issue
cash or temporary bank loans.
Traditional
underwriter: Dillon, Read & Co.
Inc., New York.
\
j j
Texas
Illinois Natural Gas
Pipeline Co.
was
.
,;g
announced
fered
for
bonds
subscription
were
Texas
sold
by
common
and
stockholders
privately.
Power &
Light Co.
May 21 it was stated company may offer either
$7,000,000
or
$14,000,000 of first mortgage bonds late in 1951 or
early 1952. Underwriters—To be determined
by com-i
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.;
Kidder, Peabody & Co. and Smith, Barney & Co.
(joint¬
ly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Carl M. Loeb, Rhoades & Co. and E. H.
Rollins & Sons (jointly); Union Securities
Corp.; Drexel
Co. and
Hemphill, Noyes, Graham, Parsons & Co.
(jointly); White, Weld & Co.; Equitable Securities
Corp.;
Harriman Ripley & Co.,
Inc.; Lehman Brothers; Salo¬
Bros.
mon
& Hutzler.
construction
Proceeds—To be used to finance
costs.
stock
common
Texas
to key employees under a stock
option plan. Under¬
writers—For debentures, to be determined
by competi¬
tive bidding.
Probable bidders may include Kidder,
stock
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Halsey, Stuart & Co. Inc.
(jointly). Proceeds—For
Dallas
The
cumulative series
preferred stock with a par value of
$100. These shares are now without par value. Com¬
pany now has a $25,000,000 expansion program, the fi¬
nancing of which will be accomplished through a later
sale of securities to the public. The present
outstanding
21,493 shares of $5 cumulative preferred stock were
subscribed for by common stockholders in 1933.
6
&
Electric Corp.
to increase authorized
stockholders voted
stock
from
1,250,000 to 1,750,000 shares.
It
is
planned to offer later this year about 150,000 shares for
subscription by common stockholders on a one-for-seven
basis
and
reported
First
Boston
this
Corp.,
that
plans
company
Probable
year.
March
8
it
was
Rauscher, Pierce &
announced
50,000 shares to employees under a payroll
plan. Underwriter — The First Boston Corp.
Proceeds—For expansion program.
to construct 527 miles of natural
gas pipe line to supply
markets in Georgia and Florida, the estimated cost of
which was between $10,500,000 and
$12,080,000.
common
underwriters:
Union Securities Co.
'
'
Utah Power & Light Co.
Co.
and
v*
1
'
'a'.
company
during
1951
^ '
pro¬
stock
to issue and sell 200,000 shares of common
$12,000,000 of first mortgage bonds. Underwriters—-
poses
about
To be determined by competitive
ders (1) For bonds:
bidding. Probable bid-*
Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; Lehman Brothers, and Bear, Stearns &
Co.
(jointly); White, Weld & Co.; Salomon Bros. &
Hutzler; First Boston Corp., and Blyth & Co., Inc. (joint¬
ly); Union Securities Corp., and Smith, Barney & Co,
(jointly); and (2) for stock: Blyth & Co., Inc.; W. C,
Langley & Co., and Glore, Forgan & Co. (jointly); Union
Securities Corp., and
Smith, Barney & Co.
Lehman Bros, and Bear, Stearns & Co.
com¬
mon
reduction
was
financing late
...
Pennsylvania Water & Power Co.
May 28 John A. Walls, President, announced stock¬
holders will vote July 25 on
approving changes in the
company's charter provisions which would permit the
issuance of the remaining 78,507 preferred shares as
Rochester Gas
Utilities Co.
May 29, it
constiuction program.
June
Peabody &
Co., and Merrill Lynch, Pierce Fenner &
(jointly). However, common stock offering
ma^
directly by company, without underwriting.
Beane
be
(jointly);
(jointly); Kidder,
made
Offering—Of stock expected about
Sept. 18 and bonds
October. Proceeds—To
repay bank loans and to
provide additional construction funds.
May 18 company
sought SEC approval to borrow from banks not in excess
late in
of
$12,000,000. Registration—Expected early in August.
Valley Gas Pipe Line Co., Inc.,
Houston, Tex. i*
May 9 FPC dismissed application of
company proposing
the
construction
of
a
$144,500,000 pipeline project to
natural gas from Texas and Louisiana to markets
in
Indiana, Ohio and Michigan.
The
company / had
planned to build 1,500 miles of line.
'
'
carry
24
a
Jersey Gas Co.
Earl Smith, President,
announced
company
bond
this year.
issue of more than $8,000,000 by fall of
Underwriters—May be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth &
Co., Inc. Proceeds—
To refund the presently
outstanding $4,000,000 of AYs%
first mortgage jponds and
repay outstanding short-term
bank notes which
are
due before the end of the
year.
k South Jersey Gas Co.
June 15, SEC announced approval of
United Corp., which, in
latter
of
its
entire
a
interest,
amounting to 28.3%,
or 154,231.8 shares of South
Jersey common stock (par
$5). These holdings will probably be disposed of to a
small group of investors.
April 4, the company indicated that it would soon be in
the market with $18,000,000 of senior securities. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.,
Inc.; White, Weld. & Co.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Harris, Hall & Co.
(Inc.) (jointly).
Offering—Expected in the Fall.
(6/25)
Bids will be received by the
company up to noon (EDT)
on Jiine 25 at its offices in New
York or San Francisco
for the purchase from it of
$10,500,000 equipment trust
certificates, series FF, to mature in 15 equal annual in¬
stalments.
Probable bidders:
Halsey, Stuart & Co. Inc.;
and Salomon Bros. & Hutzler.
Southern
May 23 C. H. Zachry; President, announced that
-
com¬
Proceeds—For
new
■
additional
an
issue of bonds and
common
Corp., New York./
ap¬
k Washington Gas Light Co. (7/16)
June 8 company filed with
the District
P. U. Commission
of
a
of Columbia
proposal to issue and sell $9,000,006
refunding mortgage bonds
to
mature
July 15, 1976
by competitive* bid¬
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth
& Co. Inc.;
Smith, Barney & Co. and White, Weld &
Co. (jointly); W. C.
Langley & Co. and The First Bostoii
Underwriters—To
be
determined
Corp. (jointly); Equitable Securities
Corp.; Alex. Browr
& Sons (jointly).
Proceeds—For construction program,
Bids—Expected to be invited about July 16.
; -
k Washington Water Power Co.
May 28 it was announced that company
contemplate!
issuance and sale late in 1951 or
early in 1952 of mort¬
gage bonds "to the maximum extent
possible and the
bank
loans
at that time will be
largely or all retired.*?.
time, it will formulate a program for the
com^
plcte refunding of all of the bank loans and to provide
At that
the
retirement
of the
outstanding preferred stock.
authority was received from SEC to borrow
$26,000,000 from banks.
Probable bidders:
(1>
up to
For stock
or
bonds:
Blyth & Co., Inc.; Smith, Barney &!
White, Weld & Co. (jointly); W. C. Langley oJ
Co. and The First Boston
Corp. (jointly); (2) For bon
only: Halsey, Stuart & Co. Inc.
Co. and
.
Speer Carbon Co.
May 18 it was reported that company plans to raise about
$10,000,000 through the issuance and sale to private in¬
stitutions of
an amount
Inc.; Salomon Bros. & Hutzler; Stone & Webster Securi¬
Corp.; Union Securities Corp.; White, Weld & CO.
for
plans the issuance of $5,000,000 new first mortgage
bonds within the next 60 to 90
days. Traditional Under¬
construction.
financing to
1951 constructior
program, and that further
financing will be required ir
1952.
Probable bidders for bonds:
Halsey, Stuart & Co,
On June 15,
Union Gas Co.
writer—Blair, Rollins & Co., Inc.
that there will be additional
proximating $20,000,000, incident to the
ding.
Southern California Gas Co.
Southern Pacific Co.
Virginia Electric & Power Co.
May 1 the company announced that it is
contemplated
ties
plan filed by The
part, provides for the sale by
the
stock.
,
that company
probably some¬
during 1952 will issue and sell $34,500,000 in bonds
and $11,500,000 in
equity securities to finance expansion
of its pipeline facilities.
Late last year, stock was of¬
&
pany
a
posed new project estimated to cost
$22,611,000. On Jan.
26, company had announced that it
probably would sell
late
sufficient
dam which will cost $26,450,000.
The remainder
be raised through bank loans
South
facilities to be acquired is
bidders:
plans issuanpe and
with Lehman
plans
from
company
and
bonds
stock
Probable bidders for bonds: Halsey, Stuart
& Co. Inc.; Blair, Rollins & Co. Inc. and
Carl M. Loeb,
Rhoades & Co. (jointly); Lehman
Brothers; W. C. Langley & Co. and The First Bostorf Corp. (jointly); Union
Securities Corp.; Kidder, Peabody &
Co.; Blyth and Co.,
Inc., White, Weld & Co. and-Harris, Hall & Co., Inc.
April
ments
announced
of the funds will
gas
Probable
was
common
$13,500,000.
May 24 the FPC authorized
000
of
approximately $13,000,000 needed to complete the fi¬
nancing
of
the
100,000-kilowatt
Yale
hydroelectric
Montana-Dakota Utilities Co.
company to acquire natural
facilities of three companies operating in Montana
and Wyoming, to construct interconnections
between
the properties to be
acquired, and to build additional
compressor facilities.
The estimated total cost of the
a
time
South
was announced stockholders on July 10 will
approving elimination of preemptive rights to
The balance of the funds
needed will
May 22 it
Georgia Natural Gas Co., Atlanta, Ga.
May 24 the FPC dismissed the application of company
May 24, it
plans for
of around
$30,000,000 of bonds (which may be placed
privately with insurance firms) and about
$10,000,000 of
preferred stock (depending upon market
conditions).
ceeds will be used for construction
program.
con¬
Mississippi River Fuel Corp.
FPC
increase
treasury
company
& Hutzler;
First Boston Corp.; Otis & Co.; Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Blair, Rollins & Co., Inc. and Carl M. Loeb, Rhoades &
the
approximately $45,300,-*
would
program
through the sale of new securities. Probable bidders for
bonds: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.;
The First Boston Corp.; Glore,
Forgan & Co., White,
Weld & Co. and Union Securities
Corp. (jointly). Pro¬
Panhandle Eastern Pipe Line Co.
$15,000,000 first mortgage bonds. Underwriters—
Corp.
the company's
daily
delivery capacity by 240,000,000 cubic feet to
over 900,-.
000,000 cubic feet a day. Tentative plans include
the sale
Co.,
stated that this company, a subsidiary of
Co., will need $36,000,000, per¬
haps more, which it expects to raise some months hence
V
Michigan Consolidated Gas Co.
April 25 it was stated company may issue later this
The
000.
was
May 25 it
Robbins, Inc.
May 24 it was announced stockholders will vote Oct. 23
on a proposal to increase authorized common stock
by
500,000 shares to 2,500,000 shares in order to provide for
a probable offering of additional stock to common stock¬
Texas Gas Transmission
American Gas & Electric
and
McKesson &
later.
Underwriter—Loewi &
Proceeds—For working capital.
Thursday, June 21, 1951
.
May 28 company outlined before
601-mile pipe line project to cost
Ohio Power Co.
May 15 it
sale
holders.
determined
Milwaukee, Wis.
nounced
gram
Chemical Corp.,
Chicago, III.
June 18, it was announced company
expects to offer in
July 74,500 shares of common stock (par $1). Price—
Stearns & Co.
..
public offering of
Underwriter—Lee Higginson
a
Weingarten
June
6,
it
was
(J.), Inc.
reported
sale
of 20,000 shares of
residents of Texas only.
ner
&
Co.,
this month.
Houston,
company
plans
issuance
preferred
stock
(par
an
$50) t
Underwriter—Moroney, Beiss
Texas.
Offering—Expected
lat
Volume 173
Number 5022
.
The Commercial and Financial Chronicle
(2599)
ICV
Midwest Stock Exch.
CHICAGO,
Governors
111.—The
the
of
Exchange,
at
since
the
Chairman to
investors
still
of
are
first
its
meeting
election,
ap¬
following
standing
appointed
by
the
committees
Large
Stock
annual
the
proved
i£r
of
Board
Midwest
serve
for the ensuing
year:
a
Executive:
reaching for
Chairman,
Reuben
situation is not being helped
"any
by
the
renewed
Moore
J hard to get along with
governments dipped through "par"
weeks ago.
some
J
Presumaby they
*
ahead
f'(
committed
are
quite heavily in the mort-
gage field on the theory that the
Admissions:
Reserve would keep governments
"j pegged at
^institutions
between
blue
indefinitely. These
par
find
now
the
devil
themselves*
and
the
deep
sea.
:7;" While the Reserve
stood in the
market to support governments
it
enough to raise the funds
necessary for such mortgage com-
was
St.
L.
since
ever
Co.,
Louis; Charles
Grandin, Jr., Piper, Jaffray &
Hopwood, Minneapolis; Clemens
E.
Gunn, Gunn, Carey & Co.,
Cleveland; George F. Noyes, The
Illinois Company,
Chicago; John
W. Billings (alternate); E. Cummings Parker, Ames, Emerich &
Go., Chicago (alternate).
raggedness
that has appeared in the Treasury
market. These investors have been
'
&
Paine,
George F. Noyes,
Chairman; Alfred E. Turner, ViceChairman; Julien H. Collins. Julien
Collins &
So
they
don't
of
dare
such
to
paper.
push
the
market too hard being fearful that
-
-?the
Reserve
niay back
away
&
Co.,
Chicago;
Rogers (alternate).
Frank E.
With
>
.their
large
Finance:
August
Norman
Freehling,
I.
Jablonski
(alternate);
Harry W. Puccetti, Hornblower &
Weeks, Chicago (alternate),
New Business
tions:
investment
Pa.,
try's
largest
installment
man;
,
John
W.
and Public Rela¬
Billings,
Chair¬
Bert H. Horning, Vice-Chair¬
stake in Treasurys the spectre of man; Harry A. Baum, Wayne
taking inventory losses to get cash Hummer & Co., Chicago; Ward W..
rVia this channel evidently acts as Dayton, Dayton & Gernon, Chi¬
>sf
"
*
*
"
1
\
•
...
;
•
^
new corporate debt issues
to move out quite readily.
seem
But
.
•
ers,
Small
'
when
sizable
a
along this does not
the
deal
comes
appear
to be
case.
A
case
in point is the $25,000,000
ski,
Chairman; August I. Jablon¬
Vice-Chairman;
Leslie
J.
Fahey, Fahey, Clark & Co., Cleve¬
land; Harry W. Puccetti; Robert
M. Rice, R. M. Rice & Co., Chi¬
cago; David G. Skall, A. G. Becker
&
Co.,
Chicago;
Lawrence
B.
of
100.823
the
on
put
bonds
offering for
an
3.58%. The
runners-up,
for
3%s,
had
a
re-
who
to
bid
have
3.60% yield basis in mind,
that ideas
so
v' Yet
for
tag
indicated yield of
understood
are
a
were
close.
bers of all
committees, except the
Nominating Committee.
Chairman Homer P. Hargrave's
(Merrill Lynch, Pierce, Fenner &
Beane) appointment of the follow¬
ing Advisory Governors was also
approved by the Board: Elmer L.
Lindseth,
President,
Cleveland
yield has not been available on Electric Illuminating Co., Cleve¬
good utility paper in about a dec¬ land; Robert W. Otto, President,
ade, the immediate response was Laclede Gas Co., St. Louis; Wil¬
liam L. McKnight,
Chairman of
reported a trifle slow.
Board, Minnesota Mining & Mfg.
Preferred Stock Goes
Co., Minneapolis-St. Paul; Sewell
Meanwhile bankers who brought L. Avery,
Chairman of
Board,
out 120,000 shares of 4.20% cumu¬ Montgomery Ward & Co., Chicago;
even
though
this
kind
of
With E. F. Hutton Co.
Reed, Inc., Baltimore Avenue.
interest
to
yield
3.37%
to
Gilbert H.
Scribner, Partner, Win¬
ston
& Co., Chicago; Robert E.
nounce '
oversubscription of that Wilson, Chairman of Board, Stand¬
issue and closing of the books by ard Oil Co. (Indiana), Chicago.
Commercial Credit Co. will
use
its outstand¬
E.
ing $35,000,000 note, due Aug. 1,
1951, and the balance will be
made available for the purchase
Geo.
financing to
new
of
receivables
of
course
its
pay
in
the
business
at
This
offering
a
was
brought
to
price of 101 and found
2-6
the
was
commanded
ave
for
stock
a
a
reported
small
time, though
to
premium
later settling
back to the offering level.
Commercial
Credit
eing publicly offered today.
The issue carries
ate
and
rued
is
a
to
of the
New York Stock Ex¬
Cohn, Jr., formerly
the New
a
L.
member of
Y£rk Stock Exchange, is
associated with the firm
as
a
cus¬
that
or
yield
and
3.37%
notes
new
the
option
redeemable
are
of the
at
company
prices scaling down from 101% if
redeemed
on
before
or
June
15,
after
1952, 'to 100% if redeemed
15, 1956.
Since its incorporation in 1912,
Commercial
Credit
Co.
has
orking capital and ultimately for
ayment of $35,000,000 of notes
aturing next August 1.
Spring
Broadway, New York City
With Francis I. du Pont
(Special to The Financial Chronicle)
P.
Schwartzes engaging in the secu¬
rities business from offices at 1444
Western
also
Avenue.
maintains
Lake
Mr.
office
an
at
LAUDERDALE, Fla.—Wil¬
liam K. Johnston has become
nected with Francis I.
du
con¬
Pont &
Co., 113 Southeast Second Street.
DIVIDEND
NOTICES
1996
NATIONAL SHARES CORPORATION
Street, Elmira.
14 Wall Street, New York
A dividend of fifteen cents
(15c) per sharo
has been declared this day on the
capital stock
of
the
Corporation payable July 14,
1951
to
stockholders of record at the close of business
June 29,
1JD51.
Schwabacher Adds
at¬
FT.
Schwartz
(Special to The Financial Chronicle)
leading position in the
SAN
FRANCISCO, Calif.
field of installment financing with
Jacob
G.
Schurman III and
gross receivables acquired in 1950
Norman O. Wing have been added
amounting to approximately $2,to the staff of Schwabacher &
Co.,
346,584,000.
Either by itself or 600
Market Street at
Montgomery,
through its subsidiaries, the com¬
members of the New York and
pany is engaged in the financing,
San Francisco Stock
Exchanges.
insurance and manufacturing
businesses.
Of
consolidated
JOSEPH
June
14,
S.
STOUT,
Secretary
1951.
proximately
rived
$11,000,000
finance
from
was
DIVIDEND NOTICES
Hudson
oper¬
man¬
and
'
Lexa
a
Oil Corp.
A
Blancke
Noyes,
Noyes, of Hemphill,
Graham, Parsons & Co.,
members of the New
York
Exchange, has been elected
Stock
a
Stock
stock
will
be
drilling of
the
stock,
Co., Ltd.
of
per
sale
of
this
for
the
rfv' ZZ23
^
J
well in Pennsyl¬
If sufficient
received, the
to drill
proposes
tana
and
install
The proposed
company
some
at
the
close
3,
are
four
stock of the
common
June 30, 1951,
is subject
of funds derived from the sale of
1951.
KEMP,
M.
Treasurer.
TABLET
&
STATIONERY
of
business
June
cn
28,
1951.
BACH", Treasurer.
300
at
to
Company, payable
£
A regular quarterly dividend of 50<t per share has
been declared on the Capital Stock of this
Company, payable July 16, 1951, to stock'
£
£
holders of record June 29,
transfer books will remain
£
£
£
e.
EE
w.
The stock
1951.
open.
atkinson, Treasurer
June 14, 1951,
Silllllllllllillllllllllillllllllllllllllllllllllllllillllllllllll!!
stockholders of record
the close of business June 20,
H. B. Pierce,
1951.
Secretary
pillllll!ll!l!lllllll!llllll!lllllll|||||||)llllllllll!llllll!lll!lll!!!!llllll!lllll!!
shares.
Oil
Lexa
Corp.
organized
was
in 1949 for the purpose of explor¬
ing for
of
oil
and
the
development
likely oil prospects. The
corpo¬
ration has acquired a one-half in-
g New England Gas
g and Electric Association
H
S
DIVIDEND NOTICES
COMMON
The
AMERICAN
Two
POWER
Rector
Street,
CAPITAL
New
A
dividend
of
STOCK
24c
Trustees
JACK,
Secretary
Edison
twenty-five cents (25c) per share
on the common shares of the
Association, payable July 16,
and
Treasurer
|
|
|
COMMON
1951.
June 14, 1951
benture Stock will be
share
on
DIVIDEND
COMMON
DIVIDEND
30 cents per
share
on
authorized the payment
of the
following quarterly dividends:
the De¬
50
the "A" Common
Aug. 15, 1951, to stockholders of record
cents
Common
28
VOTING
Stocks will be paid
NO. 13
The Board of Directors has
per
share
on
the
share
on
the
Stock;
cents
per
Preference Stock, 4.48% Con¬
vertible Series;
COMMON: A quarterly dividend of
and Voting Common
'
STOCK
4.56% CONVERTIBLE SERIES
moore, jr., Treasurer
paid Aug. 1,1951,
and
NO. 17
PREFERENCE
stockholders of record July 23, 1951.
"A"
NO. 166
STOCK
4.48% CONVERTIBLE SERIES
1951 to shareholders of record
the close of business June 21,
h. c.
to
DIVIDEND
PREFERENCE
at
|
Company
dividends
regular quarterly dividend of
a
on
California
declared
|
Y.
§
W.
Southern
17
|
|
N.
the Capita!
Stock
of
American
Power
&
Light Company
was
declared or.
June
20, 1931, for payment
August 1, 1951, to stockholders of record at the
close of business
July 6, 1951.
D.
have
NO.
6,
York
DIVIDEND
share
per
DIVIDEND
COMPANY
LIGHT
&
and Electric Association
PREFERRED
DIVIDEND
NO.
17
July 23, 1951.
(
|
28%
cents per
share
on
the
Preference Stock, 4.56% Con¬
vertible Series.
s
A. B. New hall,
on
payable
record at the
COMPANY
—
meeting of the Board of Directors,
this day, a quarterly dividend of
25^ per share and an extra dividend of
25$ per share were declared on the
to modification in the light of re¬
sults of drilling and the amount
these
dividends
stock
LION OIL
_
June 13, 1951
COMMON DIVIDEND No.
battery.
tank
a
business July
E. H.
a
in Mon¬
area
program
The
Corporation has been declared payable on July
16, 1951, to holders of record of such shares
held
wells in the Pondera
stock.
Common
to stockholders of
Packing Company
velopment program.
later
and
1951,
DODGE, Treasurer,
The Garlock
At
are
1,
CORPORATION
the
H. E.
vania and in the corporation's de¬
funds
capital
Preferred
Corporation have de¬
37»/2 cents per share on
stock.
They
have
also
62!2 cents per share on
Notice is hereby given that a dividend at the
rate of $.59 per share on the issued, and out¬
standing shares without par value of the Com¬
mon
Stock
of
Western
Tablet
&
Stationery
as
first
used
gas
a
Common
of
of
common
from
dividend
WESTERN
Bay Mining
shareholders of record at the close
of business on August 10, 1951.
made by
Tellier & Co. at 20..cents a share.
Proceeds
a
close of
one
dollar ($1.00)
share has been de¬
Capital Stock of this
Company, payable September 10, 1951,
on
Treasurer
The
Trustees
have
declared
a
quarterly dividend of %\.\2Vi
per share on the AVi% cumulative convertible preferred shares
of the Association payable July
1,1951 to shareholders of record
at
the close of business
h.
c. moore,
June 14, 1^51
JiiHlilUltlWlltilUl
g
1
|
J
j
|
June 21,
j
|
jr., Treasurer
|
1951.
di¬
rector of Calvan Consolidated Oil
and Gas
Dividend
is being
speculation,
this
of
capital
NO. 47
to
shares
1,465,000
declared
August
Smelting Co., Limited
clared
Tellier & So. Offers
of
Preferred
the
Machinery Corporation
of
dividend
a
WALLACE
DIVIDEND
(Canadian)
Lexa Oil Corp.
the
Shoe
Directors
de¬
operations,
$5,000,000 from insurance
ations, and $3,500,000 from
ufacturing operations.
United
The
clared
both
net
income in 1950 of $19,853,511, ap¬
Framingham, Mass.
Elected Director
to
The company will use the funds
aised to increase and maintain
Chronicle)
Street.
a
AUwufosttuutq
ac-
Purity.
E.
James P. Schwartz Opens
of
poses.
The
Financial
offices
ordinary
tomers broker.
3%% interest
priced at 99
interest
formed
with
ALBANY, N. Y. —James
dividend of $2.00 per
Neuberger
&
Berman,
160
Broadway, New York City, mem¬
change, announced that Martin
Commercial Credit Corp.'s $40,,000 of neW ten-year notes are
has
Co.
DEBENTURE: The regular quarterly
Neuberger & Berman
bers
Cdrp.
&
DIVIDEND NOTICES
M. L. Gohn, Jr., With
ready demand among investors. In
fact
Meschi
Meschi
to engage in securities business.
its subsidiaries and for other pur¬
at
Geo.
to The
LOS ANGELES, Cal.—Bruce P.
Crary has joined the staff of E. F.
Hutton & Co., 623 South
E. Geo. Meschi Co.
portion of the proceeds from the
a
mid-afternoon.
market at
(Special
maturity.
.
lative preferred stock for the Na¬
tional Tea Co., were able to an¬
Robert L. Wilson, Inc.
SCHENECTADY, N. Y.—Robert
L.
Corp. and Kid¬
Co.
Bearing a
,
„
group
Avenue,
New York City.
crued
•
rof Peoples Gas Light & Coke Co. Woodard, Woodard-Elwood & Co.,
30-year first and refunding bonds Minneapolis; Lyman Barr (alter¬
sold
at
competitive bidding on* nate).
Tuesday. This issue was bid in as
The Chairman, Vice-Chairman
f.a 3%% loan at a price of 100.139. and President are ex-officio mem¬
Of The successful
en¬
securities business
a
(Special to The Financial Chronicle)
Offering
Floor Procedure: Frank E. Rog¬
.
<
gaging in
from offices at 350 Fifth
KANSAS CITY, Mo.—Joseph F.
Buerskens is with Waddell &
Co., Inc., St. Paul.
Big Issues Sticky
of
der, Peabody &
3y4% interest rate, the unsecured
notes are priced at 99% and ac¬
a deterrent. But it means too that cago; Robert A. Podesta, Cruttenden
&
Co., Chicago; Irving C.
t funds available for investment in
fpew corporate issues are shortened Stein; Bert A. Turner, Kalman &
.
consideration
iWith Waddell & Reed
r
,
in
J. P. Stevens & Co.
J. P. Stevens & Co., Inc. is
Counties,
Wilson, Inc. is engaging in a
securities business from offices at
1949 Albany Street.
First Boston
♦
accordingly.
and
Clinton
sor of
Geology, of Lafayette Col¬
lege, Easton, Pa.
finance
companies, is being made today
(June 21) by a group of invest¬
ment
banking firms headed by
f
<
for
and
on
located
acres
—
and
let prices down still further.
.
,
Centre
leases
gas
A public
drilling of a well. The loca¬
offering of $40,000,000
ten-year notes of Commercial' tion of such well is to be deter¬
mined by Prof. L.
Credit Company, one of the coun¬
Dyson, Profes¬
tained
Weld
:
portfolios
and
the
White,
easy
stantial
oil
June
Lloyd
O.
Birchard,
through the sale of Chairman;
Prescott & Co.,
t .Treasurys. But now the situation Vice-Chairman,
Cleveland;. E. Cummings Parker;
j. is quite different.
' These potential sellers of gov¬ Reuben Thorson; Ira E. Wight, Jr.,
ernments also are holders of sub- Newhard, Cook & Co., St. Louis;
,
Offered at 99 and Int.
Co., Chicago; Bert
Horning, Stifel, Nicolaus & Co.,
Inc., St. Louis; Henry W. Meers,
H.
mitments
.
in
approximately 14,000
in
The
Thorson,
Webber, Jack¬
:" new securities. The "make haste
son
&
Curtis, Chicago; Norman
*
slowly" sign continues to hang out
Freehling, Vice-Chairman, Freeh^prominently, particularly in so far ling, Meyerhoff & Co., Chicago;
?^as new debt offerings are conLyman Barr, Paul H. Davis & Co.,
^cerned.
Chicago; John H. Crago, Smith,
The
mind to take it easy in
terest
Commerc'l Credit Notes
Committee Appoints.
,
51
r'
'
1
The above dividends
are
pay¬
able July 31, 1951, to stock¬
holders of record July 5, 1951.
Checks will be mailed from
the
Company's office in Los
Angeles, July 31, 1951,
p.c.hale,
June 15, 1951
Treasurer
The Commercial and Financial Chronicle
52
.
.
Thursday, June 21, 1951
.
(2600)
Federal
the
of
BUSINESS BUZZ
mittee and by
Behind-the-Scene Interpretations
from the Nation's
Board.
•
•
raised
naturally
This
the
pre¬
sumption that Senator Robertson,
in
re-introducing the guarantee
ylnd You
Capital
virtue of that posi¬
close to the Reserve
tion, fairly
on.
subcom¬
Reserve
mittee of the Senate Banking com¬
bill, was in fact acting on behalf
of the Board. In view of the fact
that the Board is at the forefront
Credit Restraint
of the Voluntary
WASHINGTON, D. C. —Things
are
beginning to perk up again
with the Loyal Opposition.
It is
now beginning to look as though
some
of the Republican leaders
may
down
try to do something to trim
the vastly increased powers
Harry Truman 1 seeks in
Defense Production Act.
which
the
new
*
week the situation
Last
looked
GOP leaders had indicated to
bad.
dog" committee and the big
meat
saying,
give us an
his controls and start working
the
the
again. ;This .really
boys trembling for
railroad
had
GOP
awhile.
Then
of scores
of business, farm, and other public
spirited groups which have been
banging away all over the coun¬
try at the idea of reduction of
xion-essential expenditures, a gen¬
budget-balancing
bill
tax
hitting the lower brackets, and so
-7
on.
the
it probably
committee
House
it is reported, that
the Truman forces will be able by
comfortable margin to
President fairly nearly
not very
the
give
the
has
a
the
House
good
the floor
committee bill
Then
what he wants;
of
on
chance of being torn
apart.
didn't get
It
the
with
the
laid their
cards
on
daily
much attention in
but,the "round-
press
duced the Reserve loan guarantee
bill to have an answer on hand to
that
the table too,
do
alternative?
figure out some scheme
if there miist be some special
The
#
*
%
that will
DiSalle's won't?"
of inconsistency was
gem
provided by the Senate Agricul¬
ture committee.
Spokesmen for the meat
try
are
out
come
prepared as
not
in
public with
At the time when the universal
indus¬
yet to
a
as
what
develop if the ten¬
tative committee decision to end
most likely to
August 7 and
the
October roll¬
by Congress:
backs is not ratified
low normal
until the early part of
Then, say, around July 10,
volume will begin to pick up with
July.
a
to
the House committee without suc¬
cess
this
up
Transamerica.
well,
case
may
to heavier weights, and nor¬
mally would have been sold later. a beautiful break for Gov. M. S.
It represents light-weight cattle, Eccles who has been conducting a
and a proportion of the normal long-standing
crusade against
fed
meat
supply which has been sub¬
tracted and lost.
It
bang from producers who want,
Hence the working out of Di¬
unload before the Aug. 1 roll¬ Salle's scheme seriously does, by
was
cause
his
break
a
for
Eccles
be¬
book, which repufc-
new
edlyxcbncerns
itself
with
the
price. Then after Aug. 1. its fouling up of normal produc¬ Transamerica feud and, other Ec¬
deliveries again will slack off un-' tion and
distribution, run the risk cles caiises, was due to be pub¬
til the early part of September, of
forcing meat rationing
later lished in just a few days after the
when volume will again 'pickup
decision was announced.
this year or early next—assuming Evans
to get cattle sold before the Oct. that defense
production in fact, Gov. Evans is a close friend of
1 roll-back, just as volume zoomed
Gov. Eccles.
as the Administration says it will,
#
<•*
prior to the May roll-back.
does boom consumer incomes.
This rush of cattle sold in May
Recent news has brought forth
However, the increasing flow of
and possibly to be sold in July
two legislative
developments in
livestock may reflect an expecta¬
the field of finance, one a gem of
tion that Congress will wipe out
consistency, the other a shining
the two forthcoming roll-backs.
example of the inconsistency of
*
*
*
this town.
'• ' < 1
',J
Whether Transamerica Corp,,
Senator A. Willis Robertson (D.,
back in
fact be ordered to divest
Va.)
old
re-introduced
recently
Reserve
Federal
bill
the
which
except its minority ownership of
would authorize the Federal Re¬
America, is something
serve banks to guarantee loans to
which will not be finally decided
"small business," the loans to be
for a long time to come, perhaps
made by member banks. The Re¬
for two or three years.
serve banks would
be authorized
What was issued was the report
to guarantee such loans up to their
of Gov. R. M. Evans of the Fed¬
surplus.
Bank V of
.
eral
as
mended
,
'*
ft
•
.
out by
proceedings under the
It is only a recom¬
bill
take
may
initially
•'
with
WESTERN OIL FIELDS, INC.
whether
decides
Evans'
ex¬
agrees
recommendation
not. If the Board also
Transamerica,
the
then
or
finds against
must be submitted to a
*
it
decision
U. S. Cir¬
Appeals for ratifi¬
cation before it can be enforced.
Whatever the final outcome of
cuit
STOCK
Court
has a system of "insured,"
90% loans for farmers.
40-year,
as
a
intended
scheme for assist¬
ing in the demise of the RFC. It
was
not that the "Fed" believed
of
given the small business lending
function, there would then be no
logical
excuse
loans.
Senator
Robertson
was
to make these 40-year
loans to assist tenants and share
to have "farms of their
croppers
Between amendments since
own."
and those of
farm FHA
would acquire a full-fledged, sub¬
sidized mortgage business, financ¬
voted
by
Congress
bill,
the
the
Senate
ing
improvements
farms,
to
ex¬
pansions of holdings, or any other
farm mortgage need any private
institution could handle—on less
favorable terms.
(This column is intended to re¬
scene" inter¬
flect the "behind the
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)
For
Large
Appreciation Potential
WE SUGGEST
RIVERSIDE CEMENT CO.
CLASS B
A
leading
(common) STOCK
producer of
fast-growing
in
is chairman
cement
Southern
California.
Analysis of this Company and
a
review of the Cement
try
available
on
Indus¬
request.
Selling about
$14.00
for the continuation
RFC, for back in 1947 the only
business RFC supposedly had was
to grant or underwrite small busi¬
of
ness
farm-FHA
the
Originally
supposed
trotted
the Federal Reserve Board
to be used
Transamerica
was
back in 1947 when it was
decision.
next
COMMON
This
ceptions to the Evans report. Then that a Reserve bank should employ
these exceptions will be argued. its resources in underwriting
After that, the Board as a whole loans, but that if the "Fed" were
Dollar Ideas.
*
capacity
in the di¬
Both the Federal Reserve Board
and
may
significant ways.
The bureau,, which is lineally
descended from the old- Resettle¬
ment Administration of Rex Tug-
_
Clayton Act.
-
oil stock which
examiner
trial
vestment
his
in
Reserve
the
in the 81st Congress—to build
and expand the Farmers Home
Administration in several highly
be, however, the is¬
suance of the
impressive looking
"recommended decision" was,
September represents animals
which otherwise would have been
and
-
"PENNIES MAKE SENSE"
on
ported out the bill—attempted by
to what will happen
but here-is
tentatively they think is
prediction
down
clamping
a
lending, the committee re¬
loose
firm
for
is
call
in the meat situation,
'3
<
better job, says Robert¬
far
facility for small business credit.
itself of investments in all banks,
have
The Reserve can
^argument.
a
son,
We have
shall in
A Penny
business.
tacitly
effect, "But can't you
in
special lending facility for
Robertson intro¬
a
small
explanation,
Senators,
the
of
some
end
.
agreeing
The Virginia
He is
unique idea.
The argument of those who
RFC.
interesting was that
was
an
still want the RFC is that it would
meat
Deliveries of cattle will stay be¬
a
will work out,
a
What
■:..1
result, the GOP has got a
little of its courage back.
This is the House situation.
In
As
available.
work, even it
spontaneous association
uine
make
and
that
what intervened was
phenomenon reported in this col¬
umn
June
7, of the loose and
*
Senator had
committed to the abolition of the
just got to give the people meat
and at lower prices.
Can't you
on
beef
of
discouraged by the Board
was
from introducing it.
make Mike
work—both cut the
had threatened that he would take
.
he
scheme
price
all by himself, and
the Board, but
pack¬
DiSalle's
can't
little
not get the
did
ertson
mittees, that they, the meat
ers,
is that Rob¬
idea from
The fact, however,
well showed the
members of the committe, which
is made up of members of both
House and Senate Banking com¬
responsible persons that
weren't going to put up-a
fight on the wage and price con¬
trol
provisions,
particularly, of
DPA, which have resulted in a
roll-forward of wages, some roll¬
back of prices, but generally of a
rolling out of price confusion.
The general idea was that Harry
"V
the crossroads.
table and pretty
they
suspicions of dirty work at
some
packers was illuminating. At an
all-evening session the meat pack¬
ers
laid all their figures on the
several
3--
to cut down on bank lend¬
ing, the fact that Robertson in¬
troduced this bill naturally raised
program
between
the
members of the controls "Watch¬
discussion
table"
LERNER & CO.
Investment
Securities
10 Post Office Square, Boston
9, Mass.
Tel. HUbbard 2-1990
*
CURRENT MARKET
Allied Electric
.
36c Bid
41c Asked
ft
FIRM TRADING MARKETS
FOREIGN
j
INQUIRIES INVITED
SECURITIES
*
•
Products
Prospectus on request
PARL MARKS & HQ. INC.
Stanley Pelz & Co.
FOREIGN SECURITIES SPECIALISTS
INCORPORATED
40 EXCHANGE
t
BOwling Green 9-5580
50 BROAD STREET...NEW YORK 4, N. Y.
TEL. HANOVER 2-0050...TELETYPE: NY 1-971
PLACE, NEW YORK 5, N. Y«
Trading
Department
70 WALL STREET, N.
Teletype NY 1-3089
#
Hill, Thompson & Co., Inc.
•
Tel.
»
-L
<
\
-
3-
?+&
WHitehall 4-4540
Y. S
@FedFRASER