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ADM.
LIBRAS*
BUS.
Reg. U. S
Volume
171
New York, N.
Number 4920
EDITORIAL
•
v
..
ment Act have
now
an
Mr. Caterer reviews
Employ¬
relative
market
equities
in
are
behavior
stocks.
oil
Contends
will not be impervious to
Pierce, Fenner & Beane, New York City*
it."
revealing growth and development of chemical
concerns
on
on the Eco¬
Report on the January, 1950 Economic Re¬
port of the President, recently made available to
the public in general, serves as another reminder
of the futility of all this rigamarole set-up under
the Employment Act. It is also clear evidence of
seems
the
to
outlook
audience such
as
that before
opinion
company securities before an
this, he owes his listeners some discus¬
me
for
trusting souls who supposed
that in this way consistency as well as ration¬
ality conferred upon public policy. What has hap¬
pened, of course, is that the whole procedure has
been seized upon by the politicians as one fur¬
ther medium through which they might reach the
voter with preachments supporting their doings
and with popularly persuasive gobbledegook sug¬
gesting, so they hope, that they really know what
they are talking about and what they are doing.
so
say
an
change
rapidly. During the closing months
the war, students of the subject,
both inside and outside the industry,
seemed to
be
nearly unanimous that
with the end of the
demand for
war
petroleum
would
decline sharply.
During a large part of 1947-48 stu¬
dents of the
subject, both inside and
outside the industry, appeared to be
largely in agreement that oil would
be in increasingly short supply and
will continue with favorable impact
Because
throw
chemistry deals with the make-up of matter,
everything in the physical universe is
growth of chemical knowledge affects
the
civilization in the
most
5
profound
Butnot
realized
for
a
long
of the recent history into relief, I
gb back to early 1949, and list the reasons
for the considerable pessimism that pervaded the indus¬
try and the minds of investors. I think that you are
familiar with these separate reasons, but there may be
some
should like to
Continued
on
page
as
as 50 years ago.
Conceived in the
dark alchemy of
antiquity, nur¬
tured
by Renais¬
pedants,
by 18th
and 19th century
zealots, and put
to work by lattersance
courted
day enterprise,
chemistry now
Dr. Robert
S. Aries
address by Mr. Caterer before the Association of Customers'
Brokers, New York City, June 13, 1950.
John W. Spence
directly influ¬
ences
alone
the personal life of each of us. In the last decade
of America's history, chemical research and en-
Continued
14
♦An
36
nation*
recently
1950, there is a
dustry has passed through its readjustment and is on the
way up again. If conditions have changed as rapidly as
this in the past, can they not change as suddenly in the
future? And, if this is so, how much weight should be
given tb today's forecast?
To
on
because
and
material,
this
period of over-supply. Now, in midrising chorus of agreement that the in¬
As
page
progress
many
presently indicate, this minority in this
on
been tremendous growth of individual chemical concerns,
with assets, profits and dividends on increase. Predict
way.
that the industry was in
G. P. Caterer
today produce one-third
products. Through research and enterprise,
new chemical
products are constantly replacing old ma¬
terials, so that through the influence of chemistry every
industry is now a customer for chemicals. Result has
During most of 1949,
the other hand, students of the
subject, both inside and outside the
industry, appeared nearly unanimous
upward.
jue
Report and the deliv¬
Continued
and their auxiliaries
process
of national
that the trend of its value would con.
about
of the President's economic advisors.
expresses
of
Thus it is that all this business is not merely a
futility, but also another hazard to constructive
government. The situation is not "saved" by any
means by reason of the fact that the minority
members of the Congressional Joint Committee
on
the Economic Report have an opportunity,
they do not neglect, to have their
one
oil
sion of why sentiment on the industry appears to
the naivete of those
shall
York City, and JOHN W. SPENCE of Merrill Lynch,
industries in U. S. since tarn of century, writers point out,
from comprehensive viewpoints, this group of American
It
The Report of the Joint Committee
we
oil
Discusses
though should there be slump in general business, "oils
nomic
erances
of
By ROBERT S. ARIES of R. S. Aries & Associates, New
In
finding it quite useful.
the President's Economic
Piocess Industries
developments in oil industry and
not over-valued in stock market.
it is, but they, rather than the country, are
which
Copy
outlook for various branches of petroleum industry and
concludes outlook for oil shares appears quite favorable,
excellent
thing if the politicians coidd be persuaded to
drop the whole "experiment," if that is what
,
a
Advance of Chemical
Vice-President, Lionel D. Edie & Co.
-
amply demonstrated the
such procedure. It would be
Price 30 Cents
By GLENELG P. CATERER*
weaknesses, indeed the follies, inherent
any
Y., Thursday, June 29, 1950
Outlook for Oil Equities
As We See It
Practical workings of the so-called
Pat. Office
on
page
17
♦Reprinted, with permission, from "Industrial and Engineering
Chemistry," of June, 1950, issued by the American Chemical Society.
CHRONICLE photographer
the New York Security
21 to 28, inclusive.
PICTURES IN THIS ISSUE—Candid shots taken by the
at
recent
outings
Dealers
Rockland Light
and Power
of the
Bond
Club
Association
of
appear
New
on
Jersey
pages
and
Slate and
Company
Municipal
Cumulative Preferred Stock,
Series A,
4.65%
Price
R. H. Johnson & Co.
%
.
103
600 Branches
across
Established 1927
Canada
plus accrued dividends
to
yield 4.50%
Prospectus
on
INVESTMENT
SECURITIES
request
64 Wall Stroot,
White,1WelmCo.
Wall Street, New York 5
Albany
Buffale
Providence
CHICAGO
Harrlsburg
Uf
Wflkes-Barre
BOSTON
Now York 5
THE NATIONAL CITY BANK
THE CHASE
WUliamsport
Springfield
Washington, D. C
OF NEW YORK
NATIONAL BANK
Sc ronton
Head Office: Toronto
Bond Dept. Teletype: NY 1-708
New York
Seattle
Second Fund
Prospectus from authorized
Ill
Underwriters and
Distributors of Municipal
and
dealers or
OTIS & CO.
CANADIAN
Established
BOSTON
stocks and
BONDS & STOCKS
Public Service Co.
COMMON
bonds
Analysis
Goodbody
& co.
MEMBERS NEW YORK
Angeles
New York
Cincinnati
Chicago
Columbus
Denver
Toledo
Dommioji Securities
Grporahoji
STOCK EXCH.
40 Exchange Place, NewYorkS.N.Y.
CLEVELAND
Chicago
Los
1899
Dallas
Buffalo
I
Central Vermont
ESTABLISHED 1891
(Incorporated)
Devonshire Street "
New York
THE CITY OF NEW YORK
Portland. Ore. San Francisco Los Angeles
Corporate Securities
VANCE, SANDERS St, CO.
OF
Agency: 20 Exchange PL
canadian
Massachusetts
Investors
Bond Department
PHILADELPHIA
BOSTON
Troy
40
Monthly Commercial Letter
upon request
115 BROADWAY
NEW YORK
105 W. ADAMS
CHICAGO
ST.
'4
WHitehall 441161
request
IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal
111 Broadway,
WOrth 4-6000
Teletype NY 1-702-3
upon
Boston
Exchangee
N. Y. 6
Teletype NY 1-2706
Telephone:' Enterprise 1820
The Commercial and Financial Chronicle
2
(2662)
TRADING
The
IN
MARKETS
participate and give their reasons
Conv.
Eastern Utilities Assoc.,
(Boston and Albany Railroad)
Corporation
ytrdSti'«Lntf
)vh| S|
™n'h«p
infallibly to the p
c
■
York 5
Teletype NY 1-583
BArclay 7-5660
nf
ik
,
Specialists in
V I
y,n
wimm.
o
.~
h
t
n
'
-liilMW
half
te
cpntni'v
in
offerpri
»t7irinrw.o
h
T
v
a
the
•watrhpH
frfc ppNNELL & Co.
snectacular
u n
to
assets and
Sf
Exchange
York Curb Exchange
Service
Poiirnt
Floyd A. Allen
the
for
last 15 years or more,
and
time
both
d
700
over
purchased the stock upon my recommendation.
Most of them still
American Air Filter Co.
Common
received
been
ever
Capital Stock
except
Girdler Corporation
believe
I
Common
legiets
expressed
many
that they had
that time
in
not purchased more,
that the
railroads of
this country are going to continue
to operate and that the New York
BANKERS BOND &
'Incorporated
1st Floor,
of the
LOUISVILLE 2, KENTUCKY
Boston and Albany has 49
of
stock
as
'
submit
I
run,
the
Boston
and
first
are
the
Boston
stock
CONTROL
a
who
and
not interested in daily market
fluctuations.
U. S. THERMO
is
requirement
steady, reliable income
v
the
Albany
favorite security for those
my
whose
J
to
yet
years
Bell Tele. LS 186
rental
the
Since its lease
of its leased lines.
Kentucky Home Life Bldg.
Long Distance 238-9
including
obligations,
tv.,
its
will continue to meet
Central
Although listed on
Stock Exchange, the
largely traded over-the-
is
counter.
$459,000,000
(SMoaooo?
8i.800.000
*50,700,000
Pe™hi~rV"_" $748 $202°i5
$387'$i04.62
Analysis
C/
on
Request
*
•
When
a
company
7-0425
:
46
Including Foreign....
Mass.;
Service
43
75
Fourth: Cities Service owns and
of
1950
cost
in
5s
a
mid-30s,
them
at
the
gas
share
companies
the
Cities
put
proceeds
80,
Service
220
723
2,385
Texas Company
Amerada Corp.
Southern Production
in
the
mid-30s .and
that
rode
Kentucky Utilities
to
pany
total
almost
revenues
of
•
■,
Service
the
into
Cities
Service
it is
quite clear that the company has
done handsomely by at least one
York 5
Teletype NY 1-3568
Net earnings from natural gas are
believed to constitute a large perof
centage
total earnings of
the
than revenue from gas
in relation to total revenue. company
Fifth: Cities Service
investor.
WHitehall 4-2530
well
as
industries
tion
period of inflation or in a period
of
Of first impor-
vice
bore
favorable
BONDS
owned
'30s.
NORMAN T.
pn
-
J
208 South La Salle St., Chicago
;
;
publicatlv-
companies during the early
spite of change to corn-
Shelby Cullcm Davis & Co.,
New York City
^rehabilitation,
and
Service
j
event
ficient
j to
as
sell
an
outcast.
prevails
extent: to
at
a.
That opin-
Co.
of the diminishing
from higher labor
material costs, not to mention:
and
mounting
taxes,
the
•
today
cause
to
the
sufstock
discount in relation
*Douglas & Lomason
on
request
aetna securities
Corporation
111 Broadway, New
WOrth
4-6400
York 5
1-2494
Tele.N.Y.
the
purch asing
power
of his
savings and if
possible to in¬
crease
their
true
value.
This objective,
during the last year or two. Dis¬
covery of the Cuyama Field in
repre-1
prudent in-
vestor seeks to •;
maintain
spectaculars
Current -dividends
*Plywood Inc.
dollar resulting
owns some-
vice is in excess of current prices
for the stock, and book value by
no means represents replacement
Crampton
'
*Information
of Fort Wayne, Ind.)
In these days
success, in increasing .its oil reserves , of any sizable company
value.
*Winters &
(Lincoln National Life Insurance
he
realizes,
cannot
California during 1948 was a;
major incident in the history of:
the American petroleum industry.'
in
Sixth: Book value of Cities Ser-
increasingly favorable
results, the investing
public continued to regard Cities
41 ion
Tel. CG 451
rmmmmmmm—mmmm-mmm-mmmmmmmX,
un- -
spite
of
operating
zippin & company
Tele. RAndolph 6-4696
of
names
most
the
In
financial
■-•
of
petent
request
»
one
ably had the most
*Lea Fabrics
Copeland Refriger'n
ROBERTSON
be
at¬
tained by buy¬
management; in spite of
amazing progress in physical and
Bought—Sold—Quoted
Analysis
the fact that Cities Ser-
tance is
Mexican Railways
TRADING MARKETS
business.
thing less than one-third of the
improvement in the posi- common stock of. Richfield Oil.*
Cities Service may be of
turn, this company has prob-;
general interest.
are
with important reserves of
Hence the reasons for the spectacular
.
BOwling Green 9-4811
most other coun¬
resource
of normal
the company is expanding rapidly.
common,
VOGELL & CO., Inc.
37 Wall Street, New
during 1949, and this division of
put
proceeds
Cumberland
W. W.
175, and
then
•
as
York City Tel.:
9, Pa,
Bell System Teletype
PH 771
«
Phila. Telephone
New
Stock Exchange
South Broad St., Phila.
experience has shown that
share. Hence,
the company should give a good
account of itself, whether in a
sales
one-eighth of
Cities
Members Phila.-Balto.
123
basis of reserves per
Revenues from natural gas
constituted
Henry B. Warner & Co., Inc.
oil, its ownership of oil and gas
places it on a par or superior to
all but a few companies, on the
about
Toledo Edison
to be improving
industries, there is
gas
capital. While Cities Service is
generally regarded as a com¬
1,268
stock
Carbon Chemical
appears
435
preferred
6%
Mathieson Hydro
not
3,375
Service
Cities
Puget Sound Power & Light
any
com-
with various
follows:
MFC. per sh.
Socony Vacuum
the Humble Oil.
into Phillips Petroleum
Toledo Edison Common
no
the best methods of pro¬
tecting the economic value of
amount to 12.5 trilor 3,375 MCF. per
as
been
Light Common
Transportation Co,
PEnnypacker 5-2857
natural
compared
as
Penna. Power &
Philadelphia
among
lion cubic feet
held
to
share than
petroleum
price of about
Central Illinois Pub. Serv.
tries,
and far more thousands of
reserves
has
for confidence that
in the past augurs
for further progress in the
States
Total owned and controlled
Service
as briefly
paragraphs,
Eighth:
In a period of soft
money, which plagues the United
pany.
Cities
has
company
slowing down, and actually Cities
its relative position in the oil and
well
writer
the
Philadelphia Electric Common
years,
there
City Electric
Harshaw Chemical
Allan Wood Steel Com. & Pfd.
performance
feet per
first-line
Atlantic
of
justification
cubic
other
Enterprise 6800
prog-
future.
Including Foreign....
Tele. BS 142
Enterprise 2904
Hartford, Conn.
indication that the management is
54
-
the
recent
Since
ment.
Ino.
Open End Phone to New York Canal 6-1613
result of excellent manage¬
is the
Dealers
Portland, Me.
dynamic
management
outlined in preceding
'
is
in
Since
affections.
Teletype BS 259
;
Oil-DomesTicI!
Sinclair
which
in
made
Securities
very
In fact, the
Service.
gress
141
pany,
purchased
148 State St., Boston 9,
Cities
natural
""
pefini"ng
At]antip
be im¬
mean
the
is
above
resourceful
and
of
appraising
described
Third: Cities Service has substantially and persistently expanded its reserves of crude oil
J? ai? estimated total of 600 milHon barrels. This amounts to 162
barrels per share and compares as
fo lof with various companies
which refine and distribute more
petroleum products than can\ be
served from the companies own
supplies of crude,
pif;p(, cprv;PP
Yio '
has done hand-
somely by the investor,
it
likely to have a warm place
Tel. CA.
_
c?ntr0.lsany other major gas cornmore natural oil than
almost
(Cities Service Company)
1
v
his
'
„
,
Domestic
Partner, Ladenburg. Thaimann
& Co
New York City
*
.
Assn.
75 Federal St., Boston 10, Mass.
the position
and
outlook
of
a
corporation.
More important than the factors
public service sale to offset loss of hoid-
ingm,
these
of
all
in
little
Ohio
from
proceeds
deducting
life
Nat'l
Quoted
& Co., Inc.
J. B. Maguire
Members
—
but without the spark
generous,
of
Sold
—
Tel. HUbbard 2-5500
can
pressive, facilities can be ade¬
quate, oil and gas reserves can be
abundant, working capital can be
—-
Bought
pro¬
this has gone far
the former speculative
Seventh: Book value
$211,600,000
112,000.000
« After
reduced to reasonable
nature of the stock.
Preferreds,
1930 to 1946__
FXLTROL CO.
portions, and
SdXS
&Aouis.
i949-__i.
City. (Page 38)
of California
been
Socony Vacuum—
W. W. CUMBERLAND
York
to remove
cumulative
hold it and not one complaint has
Churchill-Downs Inc.
Amott, Baker & Co., inc., New
Common
retirement
conStion
Investors Research
increased, since the
company is believed to have com¬
pleted the major portion of its
expansion
program.
Debt
has
and debt retirement since 1930:
as an
during which
customers
have
dealer,
branch offices
our
Corp.—
dends may be
expenditures
plant
shows
Birmingham, Ala.
Mobile, Ala.
Sanford, Manager,
Department,
J.
Stephen
NY 1-1557
New Orleans, La.-
Direct wires to
Gas
Propane
York 4, N. Y.
Hflnover 2-0700
Shelby CulCo., New York
&
York Curb Exchange
25 Broad St, New
City. (Page 2)
Suburban
$117 million and expenditure of
$748 million for expansion and
improvements. New construction
table
Davis
lom
York Stock Exchange
Members New
Insurance
T. Robertson,
man
and preferred stock by/
something more than $387 million> increase in earned surplus
from nothing to $243 million, increase in net current assets by
debt
Members New
Life
Wayne, Ind.—Nor¬
Fort
of
Co.
debt
and
Steiner, Rouse & Co!
V
n
n
Ladenburg,
New York
Partner,
& Co.,
National
Lincoln
in
reduction
are
-
City. (Page 2)
the same time
at
berland,
Bought—Sold—Quoted
Cum-
W.
Co.—W.
Service
Thalmann
Mc?
equaled $306.77 per share for the
S 1930 to 1949 period. The following
r
fv,
BROADWAY, NEW YORK S
owner
<
accomplishments of
tha
of
acquisition
Members
New York Stock
Tel. REctor 2-7815
Cities
Sec-ond: Fef if any large companies have more rapidly added
Cities
.
for
stock
Since 1917
New
geles, Calif. (Page 2)
match
^eD°"c®ption ,n regard to this
*
rpnnri Ja
Rights & Scrip
to
Louisiana Securities
—
Floyd A. Allen, President, Floyd
A. Allen & Co., Inc., Los An¬
ft Uh!Lc sffnrH reduced liabilities than has Cities
I toeic nf Service. For example, taking the
confidence
Period from 1930 through 1949, a
____
''
d
.
„
opportunity
Railroad
Albany
and
Boston
judgment against a long-star ding
guides to the future
The only
1920
120 Broadway, New
the
has
New York Hanseatic
particular security.
a
An investor who buys on realities
rather than on shibboleths still
Pres., Floyd A. Allen & Co., Inc.
Los Angeles, Calif.
*
Established
for favoring
Alabama &
Participants and
Their Selections
to facts, figures and performance.
A. ALLEN
FLOYD
Transcontinental Gas Pipe Line
m
Thursday, June 29,1950
This Week's
Forum
each week, a different group of experts
the investment and advisory field from all sections of the country
in
Utility 5Vi/52
Central Public
Security I Like Best
A continuous forum in which,
Common & B
R. Hoe & Co.,
120
...
i v
Over-the-Counter
Quotation Services
for 37 Years
ing and hold¬
ing securities
having no
growth
Norman T. Robertson
.features.
.'knows
mortgages,
bonds,
savings
He
National Quotation Bureau
5 *7■'
that
■
Incorporated
■; •
/
Established 1913
bank
sent a fair though not generous j
deposits, and fixed price securireturn on capital, and there are
..Continued on page 38-.
reasons for believing that divi-u
46 Front Street
CHICAGO
New York 4, N. Y.
SAN FRANCISCO
Volume 171
Number 4920
.
.
.
The Commercial and Financial Chronicle
(2663)
What Is
Growth
a
Company?
INDEX
Manager, Research Department, Southern Division,
Walston, Hoffman & Goodwin, Los Angeles
pany," points out
applied to
term refers to
"growth situation" and
Page
—Robert S. Aries
and
John
W.
com¬
Outlook
be
can
developing aggressively new products or
expanding intensively through acquisition of profitable units in
related fields. Lists among growth industries:
(1) aviation;
(2) electric power; (3) air conditioning; (4) new construc¬
tion materials; (5) new chemical
products; (6) electronics;
(7) oil and natural gas industry; (8) rayon and other plastics;
company
for Oil
What Is
Spence
Cover
Equities—Glenelg P. Caterer
Growth Company?—Edmund G. Blackburn
a
How Much
Consumer
Instead,
4
Problems—Clyde William Phelps
it might seem
that the terms "growth
company"
and
"growth stock" have been
of
much overworked in recent
years.
the
blush,
Most of
us
preciate
fact
Government
Easy
Credit
6
virtually
on
ap¬
moment.
~
As
great number of situations.
basic
aptly
that
the
secular
of
trend
economic,
industrial
com
and
mercial
development
in
this
coun¬
has
try
from
upward
the
Edmund G. Blackburn
been
time
our
forefathers
founded this Republic in 1776.
'A brief examination of the tre¬
it
fits
again—and
and
power
country.
our
citizens for
a
wide
what
increased
this
from
•
1920
to
to 289 million kilowatt hours
last year.
That
increase
it
of
the
in
does
not
of
these
equities
sub-•
physical
electrical
mean
a
energy,
that the
electric
power
and
popula¬
tion of 23 million persons; it has
subsequently increased each dec¬
ade, according to the Bureau of
New
the Census, to 106 million in
situation
these United States had
a
1920;
York
1939
stock
common
last
that
the
stock
far
so
not
was
Those who
132 million in 1940, and it is esti¬
cerned.
Pacific Gas & Electric
has
do
virtually
doubled—from
76
now.
Since the war, we have witnessed
even
rapid development of
more
certain
of the
areas
country—such
as California, the Pacific North¬
west,
the
Southwest
and
the
1947
this
population
fine the essential
stock
growth in demand
the
nation's consumers for
part of our
almost
any
service
as
on
practical
product,
ranging from such a commonplace
electric
through
the
luxuries
and
quasi-necespower
such
automobile, to such
furs and perfume. To¬
as
day, demand for such products is
probably higher than it ever has
been, and obviously greater than
it
20;
was
or
30 years
does not mean,
these industries may
be
classed,
ago.
This
however, that all
per se,
as
—
we
growth in¬
as
tendency in recent years, on the
that
is
should
by Mr. Blackburn at the
Conference of J. Henry Helser &
June
6,
Associates,
1950.
those
Sjafi
Jose,
rapid
in¬
earnings
by the aver¬
be specific,
that the expansion of
To
profits
and
must
be
not
merely cyclical — that is, expand¬
ing from the trough of a depres¬
the
to
stead,
it
of
crest
a
in¬
boom;
the
be
must
growth that
of
type
and does advance
can
cycles
economic
of
earnings establishing succes¬
sive
new
highs,
each
of
at
least
cycle.
upward
true
the
at
growth
Alfred Hecht Sees Rebound From Present Stock Market Slump
Progress in Fertilizers Cited by Robert M. Salter
year
Calif.,
than
they
Continued
interested in offerings of
did
on
in
12
Banks
Place
Debentures
......
-
Chemical
Unsound,
Says
Maurice
World's Business Leaders
and
page
-
Chicago
-
;
See It
(Editorial).
Bank and Insurance
£
Quoted
J.F.Reilly &Co.
Incorporated
61
31
_
:
Broadway, New York 6
i
Teletype NY 1-3370
Cover
j
Stocks.
30
*
Business
Man's Bookshelf.
Trading Markets in:
Canadian
Standard Gas & Elec.
32
Securities
Southwest Nat'l Gas
Coming Events in the Investment Field__
Dealer-Broker
Dumont
8
8
Investment
Recommendations
Einzig—"Can France Return to Gold Standard?"..
From
I
41
....
Washington Ahead of the News—Carlisle Bargeron.....
Indications of Business Activity
Lab.
A
/
Teco Inc. W.I.
Remington Arms
31
6
40
...
Mutual Funds
*"
*
•
Hubbard
Notes
...
-
16
HAnover 2-0270
News About Banks and Bankers
'40
Exchange PI., N. Y. B
32
;
Teletype NY 1-1825 & NY 1-1828
Observations—A. Wilfred May
Our
Reporter's
Our Reporter
5
Report
on
46
Governments
33
Prospective Security Offerings
14
Railroad Securities
STIX & Co
45
Public Utility Securities...
29
Securities
Salesman's
Corner
INVESTMENT
SECURITIES
503 OLIVE
'
STREET
37
_
Securities Now in Registration.
St. Louis 1,Mo.
42
:
The Security I Like Best
MEMBERS
2
MIDWEST STOCK EXCHANGE
The State of Trade and Industry
Tomorrow's Markets
5
...
(Walter Whyte Says)..
Washington and You
0514
GARFIELD
TELEPHONE:
38
SL-80
TELETYPE:
34
Published Twice
48
Weekly
COMMERCIAL
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COMPANY, Publishers
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news,
Other
Offices:
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*V;
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1942,
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at
N.
the
post office at New
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under
Manager
Subscriptions in United States, U.
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....
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(Telephone:
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rtate and city news, etc.).
Chicago
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(general news and ad¬
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second-class matter Febru¬
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9576
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CHRONICLE
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DANA
London,
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c/o
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and
Every Thursday
records,
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mack1e, Inc.
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"
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Utner
50 Congress Street, Boston 8
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Regular Features
As We
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Members New York Curb Exchange
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...
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FINANCIAL
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*
&
13
Austin
HERBERT D. SEIBERT, Editor & Publisher
Street, New York 4
!
Thor Hultgren Reports Uneven Corporate Profit Trend—..... 30
PREFERRED STOCKS
HAnover 2-4300
Common
Industry's Primary Task Is to Earn Public's Long-
Rahge Confidence, Says George W. Merck-
Reg.
25 Broad
Stromberg Carlson
1937,
High Grade Public Utility and Industrial
New York Stock Exchange
8
FIC
Reentered
Members
Radio & Television
10
land
are
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&
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8
Continued Prosperity Predicted by Home
Furnishing Leaders
The
We
Common
7
,
For
companies
reported larger sales and earnings
last
Government
'
de¬
pression and prosperity with sales
and
Preferred
Radio & Television
its
and
reported
means
sion
&
Hytron
5
company
more
a
this
sales
*
>
"growth"
corporation.
peak
address
qualifications to
company
age
example,
Company
funds, de¬
"growth situation."
a
show
part of security analysts and se¬
♦An
own
growth
a
in both sales and
crease
than
a
a
curity salesmen, to put the label
Annual
as
it, the first requirement
see
automatically through
dustries, although there has been
a
As
Common
■
over-all
as
today at 34 V2
this
war.
characterize
light,
in
Hence, it would be well to de¬
6f what
47
*
for
common
spite the important progress and
large
plant expansion
program
completed by this ably-managed
public utility since the end of the
increase has meant in the way of
sities
con¬
was
paid 43J/4
it sell
see
regard
situation for their
Southeast.
Think
and
not
*
growth
a
he
as
mated for this year at 151 million.
Since the turn of the century, it
million in 1900 to 151 million
its
at
high of 35, and sold it at its
year of 21V2 will testify
low
WHitehall 4-6551
Dumont
Proposal to Speed-Up Collection of Corporate Income Taxes Is
certainly represents
light companies meet the defi¬
such necessities of life as food, nition of "growth stock," as we
clothing and shelter to such lux¬ understand it today. Anyone who
uries as television sets.
bought
Consolidated
Edison
of
In 1850,
variety of products, ranging from
Buy—Roger W. Babson
39
142 million kilowatt hours in 1940
and
a
pro¬
in
generated
office.'
yourself
Laboratories
Manufacturing Chemists Cite Need of Liaison With
else
we
million kilowatt hours in
sion, activated by increasing de¬ but
mand from
an
has
country
production
expan¬
something
service in this
indication of this
power
stantial
economic
How
light
As
growth,
genesis
our
is
that is
have
STREET, NEW YORK
16
Harold S. Schreder Forecasts Higher Stock Market Prices
be applied to a
pose to examine this morning.
I
just mentioned, for example, the
increasing
demand
for
electric
mendous population growth of the
United States will illustrate the
of
see,
can
bonds
our
16
When and What to
term
and
can
at
13
Market Crack-Up Reflects Too Much
Regulation—Leslie Gould
*
the
o m
—
Kaempffert
Over-Building of Office Structures—Lee Thompson Smith
"growth stock"
y
WALL
-
>
.
living in a
dynamic econ-
you
99
9
Plastic World of Tomorrow—Waldemar
to Various Situations
are
and
cut
go
obsolete
cash
every
Term "Growth Stock" Applies
we
into
Telephone:
and security in which
happen to be interested at
they
those
turn
stccks
Then
Hopping-Up Building Boom
—Warren W. Allen
company
the
that
"growth"
and
really Glorious Fourth!
The
first
BONDFIRE!
3
Government?—W. Randolph Burgess
Loan
DON'T LIGHT A
Cover
and, last, but not least, television
At
AND COMPANY
Advances of Chemical Process Industries
.
Research analyst, in explaining meaning of "a
growth
Articles and News
i
LiCHitnsTfir
"
By EDMUND G. BLACKBURN*
3
Bell
Y. Security Dealers Ass'n.
Nat'l
Ass'n
St.,N.Y.
of Secur.
Dealers
Tel. HAnover 2-4850
Teletype—NY 1-1126 & 1127
4
The Commercial and Financial Chronicle
(2654)
BURGESS*
York, N. Y. C.
Committee, ABA
Chairman, Economic Policy
Marx, on
bagjs of which he asserted that the
How Much Government?
By W. RANDOLPH
it
demand
brings, not for curing
the time and nervous energy appearthe causes, but ior more govern¬
ing beiore Congressional commitment controls over prices, rents,
poor are becoming poorer and the tees.
and the use of credit.
It robs
rich richer.
The facts prove the
As the scope of government recontrary—that the worker's posi- sponsibilities has increased, the people of tne value of tneir money
;
lion is rapidly improving actually amount of legislation presented to and tneir freedom also.
and relatively—but this has not the Congress has accumulated into
Danger to Individual Initiative
stilled the belief.
The slogan of an enormous mass far beyond the
Karl
argument of
Chairman, National City Bank of New
Thursday, June 29,1930
...
British
the
growth of "big government," and though
conceding responsibility of government for increasing social
and economic functions, holds "we ought to stop, look and
listen" and make careful survey of dangers to human welfare
in this trend. Points out dangers of government incompetence
and sees threat to sound money in expanded government spend¬
Mr. Burgess reyiews
shares
Labor
is
for all,"
tion of
"Fair
Party,
clear reflec-
a
widespread feeling that
has
been
taking more
a
someone
capacity of the Congress to analyze and digest. Legislation thus
becomes a great lottery under
which a majority of Congressmen
bills they have
millions of people in the United never read and do not under¬
states who have the same feeling, stand.
Voting goes too often not
and
the feeling
is zealously by justice and wisdom, but by
fostered by certain politicians.
who yells loudest and appears to
Let us not underestimate
the have the most votes.
One of the
force of these two arguments.
We strongest arguments for limiting
live in a hopeful optimistic so- the powers of government is the
his
than
as other dangers from big government: (1) bureauc¬
racy's destruction of democracy; (2) loss of private initiative,
and (3) promotion of selfish group interest Attacks govern¬
ment going into credit field.
ing. Lists
fair
share,
There
r
are
voting
are
on
In
of
the
any
long
the progress*
depends on the
and initiative and
run,
country
independence
energy of tne individual citizen.
The basic problem of government
today is whether it fosters the
philosophy of the hand-out or the
philosophy
through
of
achievement
effort.
formula
The
"From
was
Marxian
each
accord¬
ing to his ability, to each accord¬
ing to his need."
Many of our
ciety which has been its standard weakness of present governmental American
do-gooders
have
like the TV A and the of living under private enterprise machinery, or any political ma- adopted this communist formula
Once upon a time people said opment
and
rapidly increased chinery, for carrying the load it and interpreted it to mean "Pe¬
and believed that "The best gov¬ Grand Coulee, government sup¬ steadily
The average now has to bear.
nalize the industrious; reward the
Each session over many years.
erned people are the least gov¬ port of crop prices.
American expects this advance to
erned."
But the pendulum has of Congress sees more proposals
lazy and incompetent."
This is
continue and is ready to listen to Impairing Freedom to Change the
for additions to this list.
exactly contrary to the principles
swung far the
Danger to Democracy
Conservative politicians in this political leaders who claim credit
on which America was built; the
other
way,
As government gets bigger, the early Pilgrims followed the more
country have questioned the ad¬ for past success and who have
and people all
ministration
of
some
of
the rosy plans for the future.
The proportion of the population who practical biblical injunction: "If
over the world
for government, or are anyone will not work, neither let
existing projects, but have not "let government do it" idea looks work
are looking to
pretty good on paper.
otherwise dependent on govern- him eat" America grew on the
their
proposed their liquidation. A ma¬
govern¬
.
jority of the people are accepting
a
general framework of govern¬
ment under which one-quarter of
to
ments
bring
them
the better life.
the national income is taxed from
A Brit ish
the
has
election
just
fought
ended
draw.
Under these circumstances,
this
on
question,
not
a
Even
so,
the
was
it is
enough today for those of us
who are critical of certain of the
and
in
people and spent by govern¬
ment.
been
not clear-
issue
W. R.
and
ventures
government
newer
proposals to state our case dog¬
matically.
We must rather be
Bur*est
cut, but rather
question of degree of govern¬
ment control.
The Conservative
a
prepared
the
analyze
to
specifically
and the dangers
lie in the further exten¬
government.
We
are
advantages
that may
of
Party declared itself for the wel¬ sion
fare state, including government dealing
with a world tide in¬
health and housing programs. v> It fluenced
by the philosophy of
drew the line on thl nationaliza¬ Karl Marx and its embodiment in
tion of further industries; but it the
Russian
experiment.
Big
did not propose to turn back the governments created all over the
coal industry, the railroads, or the world to deal with war emergen¬
utilities to private enterprise.
cies have acquired vested inter¬
In
the
United
probably not
Socialism
as
States
have
we
gone as far towards
the
Conservative
ests
that
luck
or
be
cannot
broken
by
The argument
for more govern¬
ment is supported by a formidable
have
must array of writers, teachers and
frankly admit that a majority of politicians. The gist of the argu¬
our people are committed to more
ment takes two forms—the first
of
which is the recognition of
government than ever before.
From
the
beginning
in this things wrong and the apparently
country, we recognized that the simple and obvious cure, "There
National Government must be re¬ ought to be a law." There are on
Party
England;
in
gone
long
a
way,
but
and
we
we
record
the
for
for the benefit of the people.
maintaining
order,
fixing the value of
By
and
for
comment
of natural
resources, the regula¬
public utilities, transpor¬
tation, and banking, and a sub¬
of
stantial number of other services.
A third category of
government
activity, though more
would be approved by a
of
the
population,
debated,
majority
including
old
assist¬
unemployment
age
and
ance,
supervision of public health,
government
gages,
of
public water
power
devel¬
*An address by Mr. Burgess before the
Econonmics
Seminar
of
1he
Graduate
School
University,
New Brunswick, N. J., June 23, 1950.
of
Bankirar,
We
only to think of the child
labor laws, food inspection, public
health service, the FBI, care of
rivers and harbors, flood control,
the forest service,
and so forth
through a long list of activities
which we now take for granted.
What is more natural than that
Rutgers
the govern¬
people should want
ment to undertake more and more
chores
are
for
their
impatient
processes
benefit?
the
with
of individual
or
They
slower
group
vidual.
The second
that
argument is to the
private
enterprise
is
exploiting the people to its own
advantage, and government must
intervene to stop
this.
This is the
but
each
of
human
of Big Government
Dangers
Incompetence
:
payer—with appreciation
its
is
government
a
existence.
There
passes
is
no
out
such
government departments;
was
brought out by the
of
but
and
fails
deficit
at
test
as
they go on
year after year, whether they are
competent or mcompetent; and
Commission
Hoover
life
continued
their
political
depends
not
and
decisions
on
on
competence. The bigger the government, the greater this danger.
The
his office
make
who
official
government
tries to
efficient
by getting
rid of incompetent
people finds it next to impossible
do so.
His first move brings
who
his
on
head
the
plead
tenure
under
Civil
Service.
He
discharge them only by prov-
ing his case before some committee or commission, and he soon
gives
ment
attempt.
Governbureaus, while they contain
the
up
many
public
devoted
and
able
also the safest shelincompetent.
are
ter for the
,
„
The ^efficiency
operation
is
of government
nowhere better lllus-
trated than the government
on
rules
employees are entitled to 26 days
annual
leave and
15 days sick
each
with
year
full
pay.
sick
leave
each
year.
government structure
ernment
request
handicap to gov-
competence
lies
in
the
leadershio of government denartments.
Broadway* New Yo*k 5
;The upper Sechelon of
be used by
The
■
5
a
the
"welfare"
to
as
be
the
subjected
exactly the
same kind of crit¬
analysis as those of a wellordered family.
The wise father
and mother know* the welfare of
ical
each
child
is
achieved
through
encouragement to hard work, and
not
candy and motor
parents
are
Wise
cars.
of
generous
Continued
case
lieve
wj10
Eisenhower
oppor¬
the
Trading Markets
greater
and
the
Alabama-T ennessee
stated
army
of
Natural
and
greater
authority, and
greater dependence
Treasury
Kingsport Press, Inc.
are
dangerous to our
than any ex—
ternal threat that can possibly be
arrayed against us."
really
Co.
River Mills
Dan
of
Federal
Gas
persons
greater
urge
centralization
Up0n
has
36
page
iiiiimiiiiiiiiiiiiiiimimiiiiiiiiiiimi;
f0u0ws: «j firmly be-
as
that
on
Government checks
buy the vote as
General
^
programs of
should
government
of workers and government tunity and niggardly of hand-outs
more
Scott, Horner &
Mason, Inc.
form 0f government
The Danger to
;•' jv-'y
Lynchburg, Va.
the Soundness of
Tele.
Money V-;-
LY
83
LD
33
IlllllllllllllllllllimillllJIIIIIIIIIIIIIIk
Expanded
government
means
£2,^? spe?dinf>,an+d
to°
frequently means deficits. Long-
tmu|d deficits undermine the
°* a country's money PresRoosevelt recognized this
danger when he said, Too often
3n
ent history, liberal govern¬
me£ts hav<~ been wrecked on
E,<?c^s
loose fiscal policy,
Since there are few enemies of
^uman well-being more vicious
Since 1932
c
than unsound money, the threat
of big government to the value of
money ;s one 0f its greatest dan*
...
.
,
NORTH and SOUTH
CAROLINA
MUNICIPAL BONDS
•F. W.-
CRAIGIE&CO,
RICHMOND, VIRGINIA
'
TIle ^ay J-^1S w°rks has been
demonstrated many times. When
government spends more than it
J;akes in> ^
borrow .the dhfference, usually from banks.. This
exPan(*s the money supply and
creates price inflation. ^aPa^
and Germany have just provided
new Pr00^s °f this old law.
Bell System Teletype:
,
is the public
RH 83 & 84
Telephone 3-9137
Established
1856
H. Hentz & Co.
In
^ution. Old-fashioned economic
law still works, and the people
who suffer are the industrious and
?krifty wko have put their money
™io Sayings Bonds, bank depos*s> and insurance policies, and
have seen the value of their savlngsdecline,
An added subtle danger of
Specialists in
VIRGINIA-WEST VIRGINIA
gers
procession of
people.
Those neople at-the top,
many of them fine peonle, seldom
stay long enough really to learn
their jobs.,
They also have to
spend a substantial part of their monetary, inflation
departments, is
J. W. Gould & Co.
1ZO
homes.
corruption
Federal
vacations and leaves.
appointmentpolitical
dangerous
which may
for
power.
effectively
they did in the days of direct
may
of the local
case
and
providing
the young man
nothing and en¬
couraging him to achieve success
by his own efforts. Through this
sort of struggle, America devel¬
oped its farms, its business, its
churches, its colleges, and its
opportunity
who started with
dependents to continue its present
Congressmen
boys and girls.
He also discovers
that the incompetent people have
wine,
the instru¬
retain
an unscrupulous leader. We are
tempting fortune if we allow this
to
down
all
incompetence, swollen size.
The business firm which operates
A still further
possibilities.
on
.SnJSLi3
are
army
big
fault of
inherent
first
The
use
to
political
by
part
resources
The
heady
a
power
hand
Horatio Alger theory of
recent years and months,
discloses abuses of this sort, and deficits in the United States have
the reason of course is politics, been producing the classical reThere
are
two million Federal suits,
though
the results are
employees,
with
families
and blurred by huge productive cafriends.
pacity and a spirit of business
managed producer of crude oil—
Report
in
at
An army of county agricultural
aSents, a huge social security orIonization, a giant veterans'
organization, collectors of taxes,
to these
welfare in big government.
Every commission which has ex-
CAPITAL STOCK
dividend
his
stop,
dangers
the
of
survey
amined the
priced—a
to
look, and listen, and make a careful
weeks
EMPIRE STATE OIL COMPANY
low
ought
We
calls
thinking,
clarify
may
us
views.
own
incisive
and
Counting only working days off
as
leave, they actually get what
in private industry would be 5Vs
weeks annual leave, plus three
FOR BROKER-DEALERS ONLY
A sound and well
situation which
a
sound
leave
'
is
Here
for
is
Power
people
ments
servants,
initiative.
effect
curious
a
fact, the larger the powers of gov¬
ernment, the less free is the indi¬
can
mort¬
insurance
has intervened
have
money.
consent, we now
add'to this list: the safeguarding
tion
which government
in
instances
sponsible for justice, for the na¬
tional defense and foreign policy,
many
ment checks, steadily increases.
Mr. Hoover has estimated that
*4 million people now receive
in
bigger government have at- regular checks from the Federal
tached
to themselves the
term Government.
These people have
"liberals" which comes from the a natural tendency to vote with
Latin "liber," meaning free.
In their bread and butter.
abuse of the
language
and political
adroitness, the people who believe
By
English
of
by scolding.
.
Members
New
New
New
York
York
York
Chicago
Exchange
Curb
Exchange
Cotton
Commodity
rf'.
Stock
Exchange,
Board
of
New Orleans Cotton
And other
;
Exchange
Inc.
Trade
Exchange
Exchanges
<r
N. Y. Cotton Exchange BicEg.
NEW
CHICAGO
,
YORK
DETROIT
GENEVA,
4, N. Y.
PITTSBURGH
SWITZERLAND
-;
■
Volume 171
Number 4920
.
The Commercial and Financial Chronicle
..
(2665)
Forecasts Higher
f
Steel Production
The
Electric Output
Stock Market Prices
„
Carloadings
Retail Trade
State of Trade
Assuming
Commodity Price Index
Industry
avoidance
of
according to the semi-annual
Business Failures
of
port
I
nve s
past week and
production continued
in the
upward
with six weeks'
arrearage in hot-rolled sheets, five to
in carbon bars and two to three weeks in plates.
That
the
plates
leading
and
conditions
some
been
in
in
this
supply
carry¬
Harold
c o m
X.
have
some
many
ies
reached
seen
for 20 years, it is our
opinion that
neither the general economic nor
stock price levels have been car¬
rope, heavy forgings,
alloy specialties, particu¬
ried
to
belief
In
excess.
that
the
fact, it is
first
half
of
our
after
High level steel ingot production into the fall is assured, this
metalworking authority adds.
At least one large producer is
scheduling ingot output at 101% of capacity into October.
Other
ments, marks the beginning of
makers
continue
the market is strong, but no sign has yet appeared
indicating a broad general price advance is contemplated.
Rising
production and raw material costs are being resisted by producers.
on
*
'
*
output
in the
United
States
a
under¬
was
weeks, holiday closings will curtail output,
midst the SEC and
the Exchange's renovation and de-glamorization, to whom the roaring '20s and before are merely a vague
image.
of Research for Group Securities.
He points out that even on
But
May 31,
ages
looked for from July 5 through August, the agency added.
some
in 1946, this was not true for the
Passenger
expected to
higher
car
pass
volume
assemblies in the United States for the
in spite of the fact that the
the 3,000,000 mark early this week, with a slightly
indicated for the last half of the year, Ward's
their 1946
or
for the peak year
of 1949.
The best previous month
was
"It
*
is
known
that
advance
equally
to
revealing
analysis of all the
*
point
of
common
the
there
expert
miles around
If we realize that the author has
An
mistakenly used the present
Continued
this
on
page
33
stocks
SLIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllliiillfllllllllllillllllllllltllllllllllllllllllllllllllllllllllllllllillillllllllUIIIIIIIQS
the New York Exchange, how¬
on
■
"The Stock Exchange may be likened to a reservoir the sur¬
face of which reflects nature in all its vicissitudes, while the ebb
and flow of its depth measure the demand from users and the
supply that pours in from the myriad streams and springs from
the
date.
sophisticates also will derive
perusing Mr. Neill's story.
And
will enjoy the overall chattiness and "coziness" of his
is offered much food for reflection.
Exchange's metamorphosis to ever lesser
importance is highlighted, although unintentionally. For example,
in the book's very second paragraph, Mr. Neill says:
were selling above
highs; 82.6% were sell¬
well
market
when factory sales totaled 657,664 units.
Until this year,
according to the Association, the 1929 first five months' total of
2,679,511 vehicles also was a record.
1949,
%
For
higher quality stocks have led the
August,
and
from
For example, the Stock
highs."
brought this year's sales to a total of 2,893,695
nearly 500,000 above the first five months' figure
veterans
profit
The Exchange—"Then and Now"
ing below, and many of these were
substantially below their 1946
The May record
Street's
style..
stock
common
units
in general higher than
May 3i," the Group report
states, "only 17.4% of the listed
May factory sales of new motor vehicles in the United States
hit an all-time monthly high of 696,893 units, the Automobile
Manufacturers Association reported on Thursday of last week.
the
constructive
both groups
"On
stated.
new
were
aver¬
great majority of stocks.
year are
dramatic narrative will be particularly liked by Wall
novitiates, including the currently wooed distaff side; and
by all those in the investment world who have grown to maturity
probability
July 1 through July 4, "Ward's Automotive Reports" noted.
Aside
from several model changeovers in July, unabated production is
are
The
Street
report,
with nearly all General Motors plants scheduled to be down from
20th
Depicted also
instrumental in financing new industrial giants like United States
Steel.
written
expressed in the
according to Harold X.
Schreder, Vice-President in charge
new
high record for the third week in succession.
For the next two
a
before the recent market decline,
this development merely increases
'r
established
distinctly
Although the report
the
Automotive
be
literature
century motor-"phenom," William
the effects of war and industrial
revolution, and of the '29 crash and following depression.
Mr. Neill likewise enlarges the Exchange's importance to
viewing it as a significant provider of the nation's "flowing
capital," stemming from the turn of the century when it was
Crapo Durant.
valued."
specific products continued to be made.
*
to
May
that
postwar adjust¬
standing, and that as a result,
many carefully selected securities
of
However, advances
of
prosperous period of several years
expected to adopt similar policies.
are
Tone
series
a
A. Wilfred
1950,
larly alloy bars.
some
(The Inside Story of the Stock
Exchange, by Humphrey B. Neill, 345 pages,
B. C. Forbes & Sons Publishing Co., $6.00).
On the premise that America's industrial
growth has been closely tied up with the his¬
tory of the Exchange, the author traces the
doings of Hamilton,0 Jefferson and Jackson, the
first
and
second
United States Banks, the
nation's
experiences with gold, silver and
greenbacks, the great railroad pioneering, the
financial exploits of Astor and Vanderbilt, the
glamorous industrial-financial manipulations
of Schwab, Morgan, Cooke, Fisk and Drew—
with an entire
17-page chapter devoted to
leading
levels not
milieu
a
relaxing
environment
our
p a n
Schreder
such
In
is
is sorely needed.
So it is
that there is a timely niche for Humphrey
Neill's new book on the Stock Exchange and its
states,
prices of
be tool steels, wire
tubes, and
that
stock
of our
are
to
appear
fusion.
have
of
"and
as
mechanical and boiler
sales ammunition aimed at his surrender through fright and con¬
reached
report
gradually worsening.
Shipments of
stainless products, are becoming increas¬
About the only important steel items in relatively
area
The war-threat-via-Korea is just an addendum to the con¬
attacks on the investor's emotions such as the barrage of
economy," the
Structural
specialties, such
stant
several
areas
six weeks
the
sion.
of
new
peaks
sheets are tightest, followed by pipe,
deliveries are least extended but
products,
bars.
ingly extended.
easy
De¬
"While
will absorb a considerable part of third quarter output ^of
major products is accepted in the trade as a virtual certainty.
most
Assuredly Wall Street these days is afflicted with hyper-ten¬
Group Securi¬
ties, Inc.
markedly higher than the level prevailing for
As a matter of fact, overall
output attained a peacetime high.
Regarding steel output, there
seems
little chance for any appreciable improvement in sup¬
ply conditions before fall at earliest, according
to "Steel"
magazine this week. Mills will enter third quarter with unusually
large order carryovers. Typical of the situation is the position of
one
leading producer.
This maker will enter the new period
was
the comparable period one year ago.
a
Pleasant Summer Reading
the
tment
Research
industrial
of
pace
By A. WILFRED MAY
re¬
partment
The
over
a
higher prices for many securities,
Auto Production
and
the
with Russia, the outlook is for
war
Index
Food Price
Of
5
is the fact that 78.5% of all
15 and May 15 rose
0.8% to 168.6% of the 1935-39 average, the biggest rise since
July, 1948, according to the cost-of-living index of the Bureau
ever,
of Labor Statistics.
beginning of this month."
Living costs between the period April
Although the index
/still 0.4%
was
the
1946
issues
be¬
were
high levels at the
below May 15, 1949, the
Herman Felcfmann V.-P.
April-May increase accounted for more than half the 1.3-point
rise in the index since Feb. 15, 1950.
The Bureau noted that the
jump between mid-April and mid-May was caused chiefly by a
1.9% increase in retail food prices, with meat going up nearly 7%.
*
higher-rated
low their
of Distributors Group
*
*
Herman A. Feldmann has
joined
Group, Inc., 63 Wall
Street, New York City, as a VicePresident, it is announced by this
On Sunday last, 4,000 AFL switchmen went on strike against
five major
Western railroads.
Great
The
Distributors
Northern
RR.
reported
normal
operations
on
its
mutual
8,000-mile system.
Operations of the other four lines are at a
standstill because of the strike.
They include the 8,000-mile
Chicago, Rock Island & Pacific, which serves a 14-state area
between
Chicago, Memphis, the Gulf Coast, New Mexico and
Minneapolis; the 2,413-mile Denver & Rio Grande Western, which
Wages are the principal point at issue.
for
a
40-hour week with the
same
Geyer
same
as
recommended
by
"Common Stocks for Trust Funds
Co.,
In New York State"
the
On
merchan¬
dising of bank
The union is striking
Our booklet "Common Stocks for Trust Funds
stocks.
Mr.
F
e
1 d
in New York State" includes
-
served
mann
in the Navy
a
stocks which
in
to
and
institutions
Wars and
list of
a
believe will he
we
World
both
helpful
common
guide
as a
individuals faced with the
problem of investing funds. Write Dept.FC-11.
was
Herman
The
July 1, 1950 the new law relating to the in¬
of trustees will become effective.
vestment powers
insurance
and
weekly pay its members now
by the railroads is the
Presidential Fact-Finding Board.
&
Inc., where he
specialized in
get for 48 hours of work, or an hourly boost of 31 cents. The car¬
riers are willing to cut the work week to 40 hours but they have
offered to increase hourly wages by only 18 cents.
The offer
being made
a
Vice-
President of
Denver and Salt Lake City; the 1,500-mile
Great Western which connects Chicago, Minneapolis,
Omaha and Kansas City; and the 1,195-mile Western Pacific which
runs between Salt Lake City and San Francisco.
■
Mr.
Feldmann is
former
between
operates
Chicago
fund
sponsor.
A. Feldmann
J
s:
separated
price support |loan rate
on
the 1950 wheat
crop
will
aver¬
vice
to
the
at the same time lowered its estimate of 1949-50 wheat
exports to 300,000,000 bushels, 10,000,000 bushels below its earlier
The
Bureau
1,395,000,000 bushels,
estimated wheat supplies
or
for
1950-51
in
ser¬
1946
as
a
Commander in
Bache & Co.
Corps.
In his native city, Baltimore, he
had been associated with Macku-
agency
forecasts.
the
from
$1.97 a bushel, or two cents higher than last year, according
an
estimate of the Bureau of Agricultural Economics.
The
age
at
Supply
bin, Legg & Co., and previously
had been with Fidelity Securities
4% below the previous year.
Founded 1879
36
NEW
STOCK
Wall
rose
8%
April to reach a total of 874.
for a month of May, but not
in May, following their decline in
Casualties
were
i
at a postwar high
1948, they fell 34% below the prewar total of 1,334 in May, 1939.
/
involved liabilities of $22,672,000, a larger
volume than in April, but almost $2,000,000 less than in May, 1949,
The May casualties
Continued
on
page
39
v
AND OTHER
EXCHANGES
New York 5,
N. Y.
■
-
-James E. Bennett Adds
as
EXCHANGE
COMMODITY
»(*by 4-3600
*
in March this year.
While failures increased 13% from the 1949 level and 105% from
as numerous
AND
St.,
Corp. of Maryland.
Business failures
YORK STOCK
MEMBERS
LEADING
MID-TOWN OFFICE* CHRYSLER
,
.
'
(Open Saturday*)
8LDG. MU 6-5000
t
i
(Special to The Financial Chsonicle)
Ind.—Gerald
M. Redicks has been added to the
TERRE
<
staff
HAUTE,
of James
E. Bennett &
Offices in principal cities to serve the needs of buyers
and sellers of securities and commodities
Bank Build¬
=*j
;p ■^AH1..
liinifiiitiiiiiiiiifiiuiiuiiiiiiiuitiiiiiiiiiiiiiHuiiiiiniiiiiimiiiiiiifiiriiiiiiiiiuiiiiHtfiiiiiHiiiiliiii! ninimllilnUnnfil
Merchants' National
ing. '
Co.,
■
6
(2666)
The Commercial and Financial Chronicle
least
Consumer Loan Problems
fig¬
revealed by the actual oper¬
ating experience of industrial or
SqUthern California
from $300
amount of loan
of
ments
fully justified by the high ratios
providing the
or more.
of costs involved in
It
is
interesting
an
the
fact
the vast number of little loans of
that
Price
Consumers'
$20 to $100
limited to $300.
were
The social
American
agencies which took
the initiative in
developing the
Uniform Small Loan Law, as well
as
the legislators who enacted it
into state legislation, realized the
family,
unavoidable
Index,
representing
mation
of
the
of
approxi¬
an
of
trend
the
cost
living
as a
for the
whole
ha
rMPWW!ii
s
increased
by
and
than
more
two
lationship
thirds
-
together.
years,
of
cost
has
down
This
the
to
o1d
true
peace-
Phelps
union,
the
field—the
con¬
of
labor, the prices of
plies and other
ation
made
the
considerable
already
the
likelihood
increase
high
rates
consumer
An
expenses
dollar
a
charged
amount
for
social legislation, yields a
study which not only is of
historical interest, but also *may
be fruitful for future guidarice.
case
In
made.
mately
The Background of the Problem
The consumer finance
industry,
commonly understood, consists
30
ent
In
than
6,000 licensed con¬
finance offices operating in
sumer
states
modeled
the
under
on
Small
be
made
(by
setting
the size of the advance.
.
.
.
for
advances
of
varying
This
of
high
rate
charge
loans
principle of inverse rela¬
applies to business
well
to
the
loans
2%
at
the
his bank
per
little
a
annum
businessman
is at
formerly
one,
not too pressing, of
seeking to push down costs where
and when possible.
It became the
urgent matter of somehow holding
back
apparently inevitable rise
of costs to considerable heights,
which would seriously be disad¬
vantageous to both the companies
an
and millions of families.
The
in
movement
upward
the
prices of labor, rent, equipment,
supplies and other expenses was
far too strong to be offset by the
short cuts and other economies of
operation introduced by the com¬
panies under the pressure of the
crisis which confronted them.
.
Solutions
One solution, similar to the idea
inflationary conditions, and
them on to consumer bor¬
rowers by the enactment of legis¬
lation permitting
the companies
to
increase their legal rates of
Such
solution appealed
a
the
to
,
nor to
leaders of the
the social workers
of
representatives
social
agencies, with whom the
gardless
have
would
along the general
instalment
NOW
Manufacturing television transformers.
NOW One of
NOW Has
sets
for television, radio and allied fields.
developed
one
of
projection-type television
We consider REEVES COMMON STOCK
an
had
witnessed
decades the
unwise
of
many
legislation
charge
which
on
consumer
loans
below costs of opera¬
were
tion.
plants in operation.
In
Reeves Soundcraft Corp. with its
highly regarded man¬
agement is a company that should grow with television.
outstanding
long-term capital gain opportunity at present market under
$1.00 per share.
every
rates
state which had fixed
below
ing
of
out
the
costs
consequences
invariable
had been: the driv¬
the
operating
industry, the
introduction
of
thriving
black
markets (i.e., the rise of numerous
legally
finance
consumer
'
unlicensed
INFORMATION
ON
1
REQUEST.
lenders
sharks"),
shrinkage in the vol¬
ume
We
in
are
currently
trading in
the normal course of
the
business,
common
may
stock
have
a
and
long
or
5%
notes
of
1959
short position
and,
therein.
Gearhart, Kinnard Si Otis
INCORPORATED
45 NASSAU STREET
TELEPHONE
WORTH
4-3300
NEW YORK 5
TELETYPE
NY
1-576
attach
can
to
Claude Pepper
the voters of the State who
was
him the works, of course, but the organi¬
zation and sinews of the campaign were pro¬
gave
these politically active industrialists.
on top of this is the defeat in
North Carolina of the ex-college President,
Dr. Frank Graham. This was something I and
vided by
Coming
colleagues of the Washington press, didn't
Graham was highly popu¬
lar and had the backing of the State and Fed¬
Democratic machines. In the original primary a few weeks
Carlisle
eral
my
Bargeron
think would happen.
ago, Graham won by 50,000 votes over Willis Smith,
tive candidate, and came within about 10,000 votes
in
majority
clear
of
lieutenants
the conserva¬
of winning a
three-man race. Immediately, some of the
Reynolds, the third candidate, switched to
a
Bob
Graham, and the outlook seemed so poor for Smith in a run-off
that it was several weeks before he could make up his mind
whether
demand
to
There didn't seem to be any financial
one.
support available such as Congressman
Smathers had had in Flor¬
against Pepper or such as Smith had had in the original pri¬
mary.
The support had apparently backed off. But at almost the
last minute it came back from the same politically active indus¬
trialists who were so instrumental in killing off Pepper. To the
ida
surprise of Washington political observers
generally, Smith won.
Unquestionably, a factor in his victory was the recent Supreme
Court decisions, two of them advancing the cause of Negroes. It
is ironic that the Fair Dealers, so-called, jubilantly hailed these
decisions
having bailed Truman out of his failure to get any
through Congress. But it turns out that the deci¬
valuable Senator.
.
as
.
It is not
the
of
a
loan
service
or
"loan
available
to
afraid to send their employes a birthday
the Leftists charge, but to
Road
Ahead," is
as
for
to maintain rates of
the
purpose
industry
or
charge,
or
of socializing the
replacing it by
ernment owned and
a gov¬
operated
Continued
on
con-
page
38
case
in point.
Only
a
"The
few years ago
behind it.
Also, the Communists and fellow-traveling radio commen¬
columnists and writers generally are being more widely
tators,
exposed
and
some
of them
financial
about
at all;
they please but in the case of radio
have
to have hard
come
going.
They are screaming like nobody's business, too,
their being denied freedom of speech. This is not the case
they are still free to write as
commentators, the industrialists seem to be awakening and exer¬
certainly
cising their right not to sponsor them, and the public
right not to buy their wares. •
has the
all
~
,
long these Leftists have exercised control to an
alarming degree over what in the way of magazine articles, columning or commentating could be marketed.
The conservative
For
too
journalist has had the hard going.
The publishing houses, the
magazine editorial offices and the radio chains became infiltrated
with bright Leftist minds in key positions and outside there was,
and is, an organized movement to blow up mediocrities and down¬
right phonies who follow the party line.
There
are
heartening signs that this situation is changing, that
it is a sad
be
credited with this.
The credit belongs largely to those industrial¬
ists who are putting up the money and supporting organizations
to encourage conservative writers and see that their product gets
the proper distribution, and who are being more careful about
men they sponsor on the air.
'
at
least
are
we
getting back to more of a balance,
commentary that our publishers and radio entrepreneurs can't
The House
;
Lobby Investigating Committee, headed by Repre¬
of Pennsylvania, is trying to stop this
Its
action in subpoenaing the files of the National Economic
sentative
recent
League
Buchanan
the other similar organization
and
which I
believe
called the Committee for Constitutional Government, was
intimidate them.
might have
considered, for example, in¬
tervention by society for the pur¬
pose of subsidizing the industry so
striking
a
this book would have had no such financial support
sole purpose
been
destroy the Leftists' control of the gov¬
The wide distribution being given to John Flynn's
ernment.
the
Still other solutions
greeting for fear of
being adjudged guilty of an unfair labor practice, are now sub¬
scribing generously to the distribution of conservative pamphlets,
books and other literature, not to set up a Fascist government as
meet the
needs of consumers, and
providing of this service at ex¬
traordinary and exorbitant rates
(120%
per
annum
and up)
of
charge.
long time under
National Labor Relations Board were
Communist-dominated
even
which attempted to prescribe rates
showing pictures 3x4 feet and larger.
NOW With its subsidiaries has 5
period of
failure
of
best
who
students
over a
largest manufacturers of master discs and mag¬
netic tape
disastrous results of
and
solution of this type were only
too well known to social agencies
a
and
"■;
re¬
steadily
increasing
operation.
The ineffec¬
of
costs
loans
of
tiveness
Remington-Rand, Inc.
It
Florida.
in
compa¬
closely since the
industry a generation
solution
consumer
division of
they
accomplishment
One
their belts is the recent defeat of
nies had worked
proclaim a freezing of the
existing legal rates of charge on
to tube
They aren't being cowed any more.
country for nearly 20 years. These men, who for a
under
ply
successor
exercising their right of citizenship.
involved, in the Little Steel
Formula, would have been to ac¬
lines of the OPA idea and to sim¬
as
of the Roosevelt revolution.
out of their shells and more
coming
more
cept the rising costs as inevitable
been to proceed
Manufacturing rectangular television picture tubes
and
only in the field of politics that a growing number of
industrialists are again becoming active but also in propaganda to
offset the Leftist propaganda which has had full sway in this
Another
NOW
beginning
They are
sions also cost him a very
before.
REEVES SOUNDCRAFT CORP.
the
part of other industrialists.
they are coming once more to
something they haven't been since
the
racial legislation
The Alternative
»
birth of the
In Television
be effective,
re¬
as
on
is more,
What
industry
increasing
simple
the
longer
and
rate which
politics
-
inflationary forces generated
regarded
growing'signs of increasing activity in
government, there are
that
the
by the defense, war and postwar
periods.
The problem was no
industry
as
Despite the great segment of American industry that has
dependent upon the government and its managers and
therefore removed from the field of criticism or activity against
ducing costs
of operation,
the
problem was transformed dramat¬
ically by the impact on costs of
neither
pays
in
began to devote
thought to possible methods of
charge.
whereas
which could be made to balance
charge,
high costs of operation,
leaders
as
bank
small loans. The loans
help but average very
when
the
largest
loans
Neverthe¬
of
rates
BARGERON
become
addition, by the mid-Thirties their
high rates tended to become a
serious
problem
in relation to
their ability
to compete effec¬
tively with other lending agen¬
cies.
y -yy
.■yy
But
of the News
By CARLISLE
always constituted a heavy
problem in public relations for
consumer finance
companies.
In
consumer
as
Ahead
have
loans; big firms obtain very large
on
these very
could not
high
to pass
tionship between size of loan and
and permitted
a
small
gross
at percentage cost
maximum of $300)
very
for each loan,
income is depend¬
same
sizes."
law, as originally drafted
191-3, restricted the size of the
to
most
approxi¬
year,
be
handling personal loans, many
rent, adver¬
same
This
loans
on
to
tising, postage, telephone, station¬
ery and the like, tend to be the
Loan Law.
in
the
of
costs such as salaries,
legislation
Uniform
the
the
whereas
given-
any
tend
expenses
more
same
regardless
ing Department points out in
discussing the operations of per¬
sonal loan departments of banks
and trust companies: "One of the
major elements in personal loan
operations- is the size of
loan
apparently in¬
analysis
of
this
wise
of
of
in
many
As the New York State Bank¬
problem, and its solution through
as
com¬
size of the loan.
the
credit
evitable.:,
of
in
because
are the
expenses
these
sup¬
finance
consumer
cover
expenses of oper¬
bank,
credit
smaller the average
the higher must be
percentage rate charged to
loan
postwar inflation in the
and
Or
bank, in¬
Plan
company,
loan
The
made,
pany.
credit
Morris
or
industrial
finance industry—the great
sumer
costs
Wm.
seg¬
of
consumer
war
C.
Dr.
portant
ment
matter who is the lender
dustrial
im¬
one
relationship is inescapably
no
—whether commercial
time levels.
In
loans and
And so do large
loans and low rates.
laid
been
charge.
their
caused by
So do small
moderate rates.
con¬
credit
sumer
of
re¬
loan
very small
loans
high rates inevitably go
and very
the
war
of
then,
as
since the pre¬
size
rate
percentage
Now,
effect
and
cause
between
smaller sizes of loans.
less,
on
commercial
banks, and
consumer finance companies indi¬
cate that the high percentage rates
of charge on very small loans are
provided in
as
Uniform Small Business Loan Law to $500
whereas
From
Morris Plan banks, industrial loan
companies, personal loan depart¬
Phelps points out, because of small indivdual loans and
higher operating costs, consumer finance companies must in¬
crease loan charges or go out of business. Advocates raising
on
high for his
as
loans.
ures
Dr.
maximum limit
times
business
The studies made of the cost
By CLYDE WILLIAM PHELPS
Professor of Economics, University of
three
small
Thursday, June 29,1950
...
is
for tne
of exposing their contributors in the hope this would
A
more
brutal attempt at intimidation was
the committee sent to
panies demanding
accounting of all money they had contributed
for
an
conservative propaganda
educational
brutal
that
newspaper
it brought a
activities,
or
advertisements.
dated.
is
no
reason
contributing to
the Leftist grip it
is^in,
This
on
attempt
so-called
was
so
.
why any industrialists should be intimi¬
There is not the slightest thing
about in
had spent
150 com¬
reaction in Congress and the committee
has been toned down.
There
more
than
the
questionnaire which
a
in the world to be ashamed
movement to
'
rescue
this country from
Volume 171
Number 4920
.
The Commercial and Financial Chronicle
.
.
(2667)
7
aging of bromine, carboy boxes of
Manufacturing ChemistsCiteNeed
Of Liaison With Government;
continues
laminated hardwood formed under
stainless
pressure with thermo-setting ad¬
hesive, methods of testing for thin
glass in carboys, and generation
pacities of 15 gayons and less for
transportation of "nitric acid and
L'-T, "Warning Labels," which was
published in the fall. The Manual
other
has
of
the
development
drums
regulated
Tne
in carboys.
in
steel
having
Committee
of
has
ca¬
commodities.
cooperative research study
been
during
the
been
the
past
revision
of
year
Manual
completely revised and
enlarged.
The original principles
satisfactory lining materials for the precautionary labeling of
Board of Directors of Manufacturing Chemists' Association1
the final .stages of completion re¬ and lining techniques for single-' hazardous
chemicals have been
reports industry at high level of production with construction *
sulted innhe adoption of contain¬ trip drums, in which the active extended to cover a number ol
ers
or practices
which include a support of the Steel Shipping Con¬ specific associated problems such
continuing for increasing growth.; Cites important social, ecolow-cost single-trip carboy pack¬ tainer Institute was
nomic and political changes requiring closer liaison with Gov¬
enlisted, has as the labeling of small packages,
age with plywood drum exterior resulted in the general awareness samples, and economic poisons. A
ernment
regulatory agencies.. Reveals extensive research
for export shipment of regulatory of the
problem of lined contain¬ new definition of "poison" estab¬
program.
v *
products; methods for carboy block¬ ers and already has caused great lishes mathematical limits
and
ing and bracing practice in box cars, forward strides in the general im¬ methods of test with
laboratory
The report of the Board of
portation research. Governmental which
/will be the subject of a provement
of
|ined
containers animals for the determination of
activities in these and other fields
Directors oj the Manufacturing
new
M.C.A. manual; also M.C.A. now available.
for
'Proposals, which toxicity
labeling
purposes.
Chemists' Association, of which
have required close liaison with
special subcommittee proposal for will have the earnest cooperation This Manual is now the
generally
William M. Rand, President of
industry. The association has en¬ modification of flash
of committee
point deter¬
members, for future accepted textbook for the labeling
Monsanto Chemical Co., is
deavored to formulate and main¬
mination of liquids for classifica¬ evaluation with
Several
respect to product of hazardous chemicals.
tain a constructive policy of help¬
Chairman, covering the 78th fis¬
tion under I.C.C. Regulations by versus
liners, and development of thousand copies have been sold,
cal
ful
year
cooperation with regulatory
of the Association's
pressure
of
Completed projects and those in
'
Tagliabue
activities in addition to review¬
agencies
ing the situation in the industry
technical activities in the field
its
and
tains
technical
progress
pertinent
some
state
con¬
in
this
Our
of
respect.
i
legislation of direct
concern
the cfiemical industry have
to
fa¬
cilitated the passage of reasonable
and sound requirements in a num¬
remarks
regarding new problems created
by the continually expanding
regulatory powers of govern¬
ment in the field/'of industry.
Regarding these matters, the re¬
ber of instances.
While
it
member
been
method. This
new
circulated
open-cup
has
proposal
or
to
firms, National Fire Pro¬
tection
comment.
ing,
although
at
Technical Committees
rate sub-
a
t
s
t i
a n
11 y
a
Association activities in the al¬
lied
fields
preceding
and
safe transportation date back
Al¬
to
pro-
though
to
d
u
i
t
c
o
during
fell
n
1949
somewhat
below
the
of chemical
formation
Railway
Bureau
as
of
rate
tles for the
taken
balloon
additional
for
the
trations
for
fabrication
shipment
of
of
nitric
all
acid.
predictable
tee
are
to
being studied for application
drums in-domestic service. A
December, 1949, the commit¬
sponsored
symposium
industry-wide
an
the
on
labeling
hazardous chemicals. This
was
carboy
Executive
of
the
and
Steel
Shipping
Container
(3)
Institute in the drafting of speci¬
fications for I.C.C. 37 series single-
trip
removable
-
head
drums
included
program
(4)
is
and
Progress
Precautionary
current
regulatory
require¬
uniformity,
development of principles
This announcement is neither
an
The
bot¬
offer to sell
nor a
hazards
ary
related
as
labeling, and
to
precaution¬
application
(6)
Continued
Information
solicitation of
an
on
page
offer to buy any of these Shares.
offer is made only by the Prospectus.
-
..
■'
Commit¬
85,000 Shares
of
peak point of World War II.
force
,
in revising
at
The
Federal
Industrial
Reserve
Chemical
(1935-39 = 100)
Index
of
Production
414
averaged
for
the
calendar year 1949, as com¬
pared with 442 for the year 1948.
The
high
activity
point of
World
II
War
during
June,
index value of 412.
occurred
•
1945, with
an
that
law.
of
backed
by prior legislation, took
and
During
the
close
the
able
products
new
found
made
wide
avail¬
whi^h
have
in
both
acceptance
years,.
relationship with gov¬
agencies in charge of
hazardous
has
(Par Value $100 Per Share)
intervening
M.C.A. Committees have continued
this
still
research
4.60% Cumulative Preferred Stock
since.
ever
earlier
which
Spencer Chemical Company
they have remained in I C.C.
hands
continues, utilizing the results of
expansion,
1912, the
these regulations as its own
over
ernmental
Postwar
Early in
Interstate Commerce Commission,
articles
production
allied
over
As
and
grew, jurisdiction
various modes of trans¬
expanded.
Today
Rights, evidenced by subscription warrants, to subscribe for these shares
have been issued by the Company to its Common Stockholders, which
Rights will expire at 3 o'clock P.M., E.D.S.T., on July 3, 1950; the Com¬
pany is also extending to holders of its outstanding 5% Cumulative Pre¬
ferred Stock the privilege of exchanging their shares for such portion, if
any, of 4.60% Cumulative Preferred Stock as is not subscribed for through
the exercise of Rights, which exchange offer will expire at 5 o'clock P.M.,
E.D.S.T., on July 3, 1950; all as more fully set forth in the Prospectus.
have
and
transport.
chemicals
products
the
portation
domestic
and
foreign
markets.
Increased utilization of petroleum
of
and
natural
materials
the
gas
the
industry
which
chemical
as
continues.
half
most
raw
Today,
dollar
al¬
volume
of
from products
comes
in
not
production, or
had only limited application, less
were
than three decades ago.
Keeping
dustrial
able
ment
of
our
its
and
inestim¬
the
to
better¬
country
and
citizens
has
surge of
social, economic and
litical
nated
been
forces
in
which
its
tremendous
a
the I.C.C. in charge of rail
highway movements, the U. S.
Coast Guard with jurisdiction over
water
Subscription Price $100
Each agency has its
and accrued dividends
in
Board
air transport.
own
Civil
of
and
movements,
Aeronautics
the
charge
have
po¬
culmi¬
containers
designed.
In each
case,
M.C.A. representatives assisted in
preparation of the regulations.
Our
ants
committees act
these
to
as
agencies,
pro¬
posals
and
committee
government.
to
such
Results
incident
growth, among them the
Federal
bureaucracy, State
regulation of labor
and
industry, and the consequent
shrinkage of venture capital
through oppressive taxation, have
created serious national problems
in
relation
to
present
operations
and future industrial expansion.
Against such
a
*
background, the
of operations of a national
association such as ours assumes
During and after the expiration of the subscription period, the several
underwriters may offer shares of 4.60% Cumulative Preferred Stock at the
in the
above Subscription Price plus accrued dividends, less a concession
case of sales to dealers.
consult¬
and
vast increase of
corresponding growth
of
Share
regulations, backed by Fed¬
statute, which are continually
subject to change as new products
are
developed and more modern
relating to chemicals are
commonly referred by them to
the MCA. Washington office for
assignment to the appropriate
a
a
eral
/
with this in¬
company
growth
contributions
we
for
study
and
Copies of the Prospectus
as
may
may
be obtained from only such of the undersigned
legally offer these Shares in compliance with the
securities laws of the respective States.
recom¬
mendation.
t
Committee
Reports
MORGAN STANLEY & CO.
GLORE, FORGAN & CO.
f. The extent and diversified char¬
acter oi our technical activities is
revealed
in
the
following
BLYTH & CO., INC.
EASTMAN, DILLON & CO.
resume
of projects completed or advanced
in the last 12-month period.
THE FIRST BOSTON CORPORATION
GOLDMAN, SACHS & CO.
scope
almost limitless proportions.
trend
events
The
has
given added
importance
and
significance to
industry-wide activities in such
fields
wage
of
as
labor relations, minimum
determinations,
structure,
lution
industrial
abatement,
the tariff
safety, pol¬
precautionary
labeling and contained and trans¬
Anhydrous
Hydrofluoric
Acid
Committee—Having completed its
major activities and projects, this
HARRIMAN RIPLEY & CO.
committee
SMITH, BARNEY & CO.
was
the past year.
business
other
has
disbanded
during
Certain unfinished
been
technical
reassigned
to
Glass and Wood Packages Com¬
mittee—New studies
gations
were
and
investi¬
directed to the pack¬
MERRILL LYNCH, PIERCE, FENNER & BEANE
:>-*.•
Incorporated.
June 27,1950.
•'
s
•'
*7
'
.
"
-
'
STONE & WEBSTER SECURITIES CORPORA TION
WHITE, WELD & CO.
committees.
oi
precautionary labeling, (5) health
The major project of the Labels
concen¬
Explosives
the regulations, which,
time, did not have the
remained far above prewar levels
—higher, in fact, than during the
papers
(1)
ments and the need for
Precautionary Labeling
drums
on:
(now the Board of Directors)
assisted the Bureau
of
at¬
tended by more than 120 persons
and was well received. Highlights
history of precautionary
cooperative venture of the M.C.A. labeling, (2) legal
responsibilities,
of proceeding satisfactorily.
typ e
of
of
previously au¬
thorized under I.C.C. regulations
for use on single-trip metal drums
in export service for sulfuric acid
stainless steel with limited carbon
content
cores
capacity
forthcoming
shipment of acids. The
Association's
tee
venting
In
po¬
a
enforce¬
an
Association, the M.C.A.
steps to outlaw use of
hand-blown
during the
nevertheless, pro¬
ductive activity in our industry
the
Prior1
an
carbon
rous
has been inaugurated to
provide
plugs provided with
principles in
for voluntary regu¬
issued by the American
breaking
previous year;
revision.
industry.
agency
lations
had
attained
of
Explosives in 1907
record-
William M. Rand
packaging
the turn of the century.
ment
ual's
Drum
modified testing
a
and in lined containers
fit of the chemical
was con¬
program
,
under the two
years.
1949,
„
exploitation of improve¬
saipmng con earners
in general
Packages Committee—A
comprehensive research and test¬
cluded in
and
many
hundreds distributed
gratis to local, State and Federal
regulatory
agencies.
Permission
has been granted to the publishers
of Remington's "Practice of Phar¬
macy" for inclusion of the Man¬
liners
particularly, to the ultimate bene¬
Metal
strong nitric acid, which
of
ments in steel
may
its members in this field. *
continu¬
varying types
ment and
Association, and American
Society for Testing Materials, for
be difficult in ing program has been initiated to
some cases to evaluate these
substantiate the adequacy of sin¬
port in part states:
broad activities in terms of spe¬
gle-trip metal drums for the ship¬
cific benefit to individual opera¬
.The
end
of the
Association's
ment of 70%
hydrofluoric acid.
78th fiscal year found the chem¬ tions, nevertheless the fact re¬ Preliminary results indicate that
mains that regulatory
proposals this proj ect may prove extremely
ical industry at a high level of
are
on
the increase and must be
production, with a significant
advantageous to the industry.
volume
of carefully watched and dealt with
As the result of the committee's
as they appear.
The association five-year study of stainless steel
new
plant
is rendering a valuable service to
c
o.nstrucand
aluminum
containers
for
tion
and
coatings, assure the active, ex¬
tensive, and aggressive develop¬
11
The Commercial and Financial Chronicle
8 >(2668)
Northern Insurance Company of
TO THE EDITOR:
LETTER
York
New
14 Wall
Editor, Commercial and Financial
When
I wrote to
it
reaction
made
that
think
readers
some
I
Now, after the
are
scared
and
rather
I
ments
im¬
agine that the
recent
sharp
market
de¬
cline
traditional
ondary double top.
laid
has
the
founda¬
tion
for
strong
re¬
Street
Wall
Hecht
Alfred
fraternity
often acts in unison, and culmina¬
tion
A
based
credit
Therefore, my guess is that pur¬
chases might
again show hand¬
some rewards. '
would
pre-election ra'ly occurs,
If this
With
on.
:
elections out of the
should come to the
ural that they
the
purchases for
coming rally might be secu¬
Outstanding
outing at the West¬
annual
chester Country Club,
Rye, N. Y.
in
rities
natural
the
ALFRED HECHT
country is getting more and
more natural gas minu^d, and the
L
Hecht & Co.,
14
field.
gas
York
New
The
July 21, 1950
'
N.
5,
annual
Y.
Golf
28, 1950
June
(Portland, Ore.)
Portland Investment Bond Club
Wall Street,
summer
outing at Mt. Hood
Dr.
made
in
the
field
annual meeting at
concept
of
Bond Club of
mentioned will be pleased
parties the following literature:
Philadelphia Field
at the Manufacturers Coun¬
Day
try Club.
Newsletter
re¬
viewing current financial and eco¬
nomic developments in the chem¬
ical
industries— R.
S.
Associates, 400 Madison
process
Aries
&
Avenue, New York 17, N. Y.
New
York
S4ate—Brochure—
Bache & Co., 36 Wall Street,
York 5,
New
N. Y.
Also available
is
analysis of
an
the Lane-Wells Co.
Va.)
Co.—Analysis—Ira Haupt & Co.,
Ill Broadway, New York 6, N. Y.
Traders Associa¬
tion at the Cavalier Hotel.
brief data
are
rache
showing an up-to-date com¬
parison between the thirty listed
industrial stocks used in the DowJones
five
Averages
tation
thirty-
Id the National
Bureau
Averages
Quo¬
both
as
yield and market performance
over
an
tional
noriod—Na¬
eleven-v*ar
Quotation Bureau. Inc..
Front Street, New Yor* 4
Steel
46
N Y
Industry—Analysis
reappraisal of the industry and its
securities—H.
Hentz
&
Co.,
Beaver Street, New York 4,
Analysis—Rogers
120
South
cago
La
&
Salle
Inc.,
Chi¬
3, 111.
Bay
State
shire
ner
Fairchild Camera & Instrument
Corp.—Special
Lewis & Co., 63
York
United
States
country.
As
is
Our
carried
Blue
Diamond
Corn.—Report—
at
of
native
this
to
tobacco
and
corn
here by the Indians
5, N. Y.
South La
&
Salle Street,
the
June
"Financial
Co., 209
Chicago 4,
our
Pioneer set¬
Department of Agriculture has in¬
crops
eign
some
lands
fertile
crops
of
soy¬
as
most
our
plasm
germ
for
Through
improvement.
crop
such
constitute
source
our
and
introduction, nearly
introductions have been
200,000
"These have been the
rials
for
Motor Car Co.—Memo¬
Stern,
Chronicle"
it
of
the
re¬
was
President of
of
Pioneer Enterprises,
gram.
Street, New York 4, N. Y.
strains.
of
or
and
selected
When
the
they didn't
the
ever-changing
nature—such
new
races
as
of old
International Minerals & Chem¬
as
of
act
as
President
as
well
Capital Accumulations, Inc.
new
dis¬
Parker
&
Redpath,
during the past halfcentury in techniques of produc¬
been
ment
of
.
.
National
Birsch
&
New York
'
Joins
Co.,
J-
i_
'
V" *
Co.—Circular—
25
4, N. Y.
Broad
industries
been
Ore.—Chester
specialized
have
been
This organization has
made it possible to rapidly build
seed stocks of improved varie¬
ties and to maintain varietal pur¬
and
tion,
throughout
identity
tribution.
dis¬
organiza¬
Without this
farmers
could
full
the
American
Bank
Bldg.
He
was
Merrill Lynch,
Street, formerly with
Pierce, Fenner & Beane. 3
.
plant
connection, there hasvital need for a deep-
a
rooted
can
the
this
"In
legume in
be
may
a
the South. Al¬
partial answer
have learned that alfalfa,
we
successfully on many
be grown
using heavy
southern soils by
ap¬
plications of potash and small
quantities of boron. Sericea les¬
pedeza, too, is a good, deep-rooted
legume that thrives in this area.
Its use is expanding as farmers
learn how to manage and util¬
original content. And the de¬
going on at rates es¬
timated as high as 1% per year in
the
cline is still
the middle
corn
belt.
"This decline in organic matter
has
effect
the
had
of
impairing
water
drainage,
decline
ing
be arrested by devot¬
can
of the
percentage
greater
a
and legume crops.
In the Midwest, grass-legume mix¬
land
to
tures
grass
coming into style, with
are
emphasis
the
have
not
Great
in
land
a
alfalfa with the
V
Plains
the prob¬
We still do
difficult.
legume crop adapted
million acres of dry
the semi-humid region,
200
the
to
on
/
the
"In
although
thrive under normal
have
not
potentials from
"There
is
conditions in.
region, and sur¬
holding the soil in
semi-humid
the
while
place during extreme dry
periods.
of
However, an extensive program
testing and breeding will be
need¬
ed if this strain of alfalfa
is to be
dependable
legume
into
made
crop
a
for dry-land areas.
"There also
are
great opportuni¬
through advances
We still
have need for non-leaching forms
ties for progress
with fertilizer technology.
of
and potash that will
their nutrients as crops
nitrogen
yield
up
We
them.
need
also need
to de¬
of improving plant
utilization of applied phosphate.
velop
means
"Prospects
are
good for further
increasing the total plant nutrient
content of mixed fertilizers. While
the
national
.
average
has
been
total plant
nutrient content has been pushed
boosted
Soil
E.
Ryder has became connected with
Walston, Hoffman &
Goodwin,
'
or¬
Walston, Hoffman
PORTLAND,
—
•
■.
Lead
highly
and
trade
has
improve¬
crop
have
improved crop varieties.
52
Analysis—
Zippin & Co., 208 South La Salle
Street, Chicago 4, 111.
«
out,
associations
ganized,
seed
certification
seed
worked
(Special to The Financial Cheonicle)
Mexican Railways
also have
made
realized
Corp.—Memorandum—Aueh-
zone
crops
vive
"Great advancements
been
ity
to
Enterprises, Inc.
could
we
soils and make available
lem is more
pro¬
Plant breeders have tested
materials
against
of
continue
that
unrea¬
recent findings offer a
promising lead. It now appears
that yellow Siberian alfalfa may
new
varieties.
In this way they
offer possibilities as a perennial
brought about tremendous gains
in general crop improvement, and grazing legume to grow in asso¬
This
at the same time fought a winning ciation with native grasses.
strain of alfalfa apparently will
battle
up
Pioneer
expect
grasses.
find what they wanted, they used
the germ plasm in manufacturing
Inc., of Bluefield, W. Va. We are
informed that Mr. Campbell will
30
to
mate¬
raw
plant breeding
our
Capital Accu¬
developed.
mulations, Inc., was formerly
bell,
President
&
issue
to
on.
way
It is not
infiltration, soil,
aeration, and the ability of soil to
and
lespedeza.
Since our
are of foreign origin, for¬ yield up nutrients to crops. The
troduced
gram
ported that Alexander D. Camp¬
111.
Hudson
22
sonable
this
in
types.
substantially deepen the root
Europe brought along
cereal and hay crops. And the
ing and distributing seed of im¬
proved varieties. Our entire pro¬
Correction
In
ical
Roof).
review—John H.
Wall Street, New
Corp.—Analysis—
"Walston, Hoffman & Goodwin, 265
Montgomery Street, San Francisco
4, Calif.
result
a
from
diseases
Security Dealers As¬
Din¬
the Waldorf Astoria Hotel
soil
and structure;
requirements with respect
fertility and moisture; and of ize it.
the over-all relationships of the
"Prevailing farming practices in
many factors in production; man¬
both the Midwest and Plains States
agement practices fitted to the
have led to a progressive decline
soil conditions of particular fields
in the organic matter content of
and farms or of entire areas have
the soils in these areas. In places
evolved.
this loss has amounted to as much
"No major crop grown in the
as
from one-third to one-half of
hazards
Silver Anniversary
(Starlight
Filtrol Company of California—
incloss,
Street, Boston 10, Mass.
under¬
eases.
Wall Street, New York 5, N. Y.
May & Gannon,. Inc., 161 Devon¬
has
soils
New York
sociation
N. Y.
Co.—
Tracy,
Street,
Holly¬
(New York City)
Dec. 8, 1950
Co., 120 Broadway, New York 5,
randum—Herzfeld
Power
the
Co.—Report
Oil
for broker-dealers—J. W. Gould &
Broad
Arkansas Missouri
State
Empire
60
N. Y.
*
%
at
wood Beach Hotel.
Report—Cruttenden
and
convention
annual
industrial
over-the-rountpr
stocks used
to
the
and
1, 1950 (Hollywood,
;/
Investment Bankers Association
Co., 52 Broadway, New
4, N. Y.
Over-the-Coumer Index—Book¬
let
26-Dec.
Fla.)
Ma-
&
York
Fall
produced
some
since
composition
better
Annual
Meeting.
Corp.—
Granbery,
—
Club
_
Nov.
Easy Washing Machine
(Dallas, Tex.)
Bond
Dallas
been
to
these
on
Beaunit Mills, and Warner Bros.
Memorandum
Security
Oct. 12, 1950
6, N. Y.
Also available
Convention of the Na¬
Annual
Ill Broadway,
Haupt & Co.,
for plants. Remarkable
increases in crop production have
zone
falfa
made during the past 50 years.
tional
Doehler-Jarvis—Brief review—
Ira
New York
Common Stocks for Trust Funds
in
Central Vermont Public Service
of expanding the root¬
means
a
as
A
of crop
ration
—
layers.
nutritional qualities of the subsoil,
soil
organized program of plant explo¬
Sept. 26-30, 1950 (Virginia Beach
Chemonomics
of
the
on
man-made.
their
beans
Sept. 15, 1950 (Philadelphia, Pa.)
It is understood that the firms
interested
Gearhart Hotel,
Gearhart-by-the-Sea, Ore.
Recommendations and Literature
send
Association
Bankers
Investment
Dealer-Broker Investment
also
fertilizers.
and
founded
tlers
Pacific Northwest Group of the
to
Salter
has
progress
from South America.
Sept. 8-9, 1950 (Portland, Ore.)
through,
the soils
naturally
ginning to explore the possibilities
of improving the
structure and
been
were
Club.
surface
through
increasing knowledge of soil types,
Seibert's Grove.
\
in
standing that soil undergoes con¬
stant changes—some natural and
Association of New
Investment
have
area
"Soil and crop scientists are be¬
both
fertilizers,
proper
some
York
soil
increased quantities of
nutrients and water
use
of deep-rooted,
agRobert M. Salter
ricultural legumes in cropping systems and
progress.
Re¬ the incorporation of lime and fer¬
garding soil management and use tilizer in the deep soil layers.
evolved,
partici¬ conservative course can be ex¬
July 12, 1950 (St. Louis, Mo.)
pate to a much greater extent pected
from
the
Washington
Security Traders Club of St.
th2n they did previously in the
helmsmen regardless of t|ie out¬
Louis annual summer outing at
current
pull move. It is only nat¬ come.
'
r
fore.
shallow
tilizers
modern
Field
large
a
in many
American
management
July 7, 1950 (New York City)
it
more
a
Investment
In
November
way,
the
to
top
Furthermore,
importance of
improved fer-
been
EVENTS
the seeds for a reces¬
sow
later
of
atten¬
tion
of
should
issues
secondary
called
"Significant
and
gets
otherwise
proportion;
De¬
Agriculture,
one
,
sion
State
S.
U.
partment
said:
time
on
before
time
some
of
out
Bldg., Detroit 26, Mich.
U. S. Thermo Control—Analysis
buying
it
installment
cessive
opinion.
general
the
against
the
10 Post
Mass.
—Raymond
&
Co.,
148
Street, Boston 9, Mass.
spells in the long run dis¬
aster.
Surely
the
government
realizes this and will curb ex¬
speculator and investor if he has
had the vision and courage to go
Co.,
&
COMINp
prosperity
Indus¬
lost
over
of
try, Soils and
Agricultural
e *
Analysis—R. C. O'Donnell & Co.,
Penobscot
credit
the
reward
not
than
often
Co.—N
States Radiator Corp.—
United
sec¬
than
sooner
Dr.
Chief
Plant
brief review
of the Cement Industry.
thinks.
volume
heavy
with
points
more
satisfied
14,
In this country we
much
erosion.
the Bureau of
&
Also available is a
bigger the
mands
Sul¬
Robert M. Sal¬
Corp.—In¬
Cement
analysis—Lerner
industrial pro¬
duction is now, the earlier the
pipelines will be filled.
Maybe
many buyers will have their de¬
The
a
Our
bound.
the
White
ter,
Kinnard
Office Square, Boston 9,
many
to
have
June
on
among
rally
the
Springs,
phur
surface layers.
Fer¬
at
5, N. Y.
Riverside
suitable invest¬
the leading secu¬
rities and this still unquenched
investment demand might
carry
find
can
caution.
urge
Wall
1
Association
tilizer
Centennial
National
the
Engineering of ing
last
York
Trustees in the State of New
Co.,
Co.—
the
at
of
Otis, Inc., 45 Nassau Street, New
York
found
be
bulls
the
are
coppers
&
Speaking
Convention
Soundcraft
Reeves
and attractive yields can
in these securities.
movers,
the
setback
and
steels
memoran¬
a
formation—Gearhart,
Historically,
parade.
upward
bearish.
was
production of liming materials and fertilizers have been
highly significant in recent American agricultural progress.
Street, New York 5, N. Y.
ing Company, Chicago Corpora¬
tion, Columbia Gas System might
join their big brothers such as
Houston Oil Company, etc. in the
part of June that the stock mar¬
ket might be in for a technical
is
technical advances
in
Co.,
&
Metallurgical
Bulletin—Cohu
priced issues Texas Gulf Produc¬
the early
you
Hammill
Pure Oil Co.
Pittsburgh
"King Coal." Among the lower
of
Chronicle:
on
of Plant Industry and
Soils of Agricultural Department, points out
Street, New York 5, N. Y.
available
Also
dum
independent
become
Dr. Robert M. Salter, Chief/ Bureau
Co.—Memoran¬
&
dum—Shearson,
pre-election rally, in which secondary
participate.
to
Pfizer
Chas.
issues will
is
Progress in Fertilizers
related
of
Table
New York 5, N. Y.
way,
Stock Market Slump
trend
—
prices, rights and capital stock—
The First Boston Corp., 100 Broad¬
Sees Rebound From Present
Alfred Hecbt looks for
Thursday, June 29,1950
<».
Utilization
good opportunity for
to
22.6%, the
considerably higher in some areas
materially increasing the potenti¬
remote from fertilizer sources.
alities of
Minnesota,
some
soils to grow crops
by deepening the
which roots
ductive
can
soils
characterized
zone
grow.
of
by
the
of soil in
Most pro¬
world
deep,
are
friable
In
it has
been pushed up to 33%. To boost,
the national average to 30% in
the next few years should be a
minimum goal."
■ ■
/ c
;;
for
example,
,
Volume 171
Number 4920
.
The Commercial and Financial Chronicle
..
credit
would be felt.
Building Boom
By WARREN W. ALLEN*
loan
Vice-President,
York
New
interest
owners
forts
and increased
bank
tionably,
mortgage guarantee benefits is
mortgage
today.
men
M.
Laidlaw & Go.
du
Sturgeon
Pont
&
is
Co.,
with
256
Francis
I.
Montgomery
expansion Street.
LOS
Harris, Upham
ANGELES, Calif.—John S
Coldren
(Special to The Financial Chronicle)
has been added to the
Harris, Upham & Co., 52*
staff of
BOSTON. Mass.—Jose C. Harris
West Sixth Street.
has become associated with Laid¬
&
Harris
FRANCISCO, Calif.—Frank
Co.,
State
1
Street.
end,
Dabney
thereto he
Dabney
Robert Lytie Opens
Mr.
formerly with Towns-
was
&
was
a
Co.
&
Boston
was
LOS
Prior
Tyson.
partner in F. L.
and
(Special to The Financial Chronicle)
Manager for Spencer Trask & Co.
ANGELES, Calif.—Robert
S. Lytle
is engaging in a securities
business from offices at 714 Wes:
Olympic Boulevard.
,
boosting real estate prices and,
result, current housing boom
is being over-extended by gov¬
ernment policy of easy credit.
Says vfcal question facing real¬
as
^ reasons lor
ty owners and mortgage men is
when the
using Oiviion
"pan£s of overindul¬
gence" will develop.
The
housing bill,
raises the VA
new
know,
from
50%
60%
to
the dollar amount
Safer
all
as you
guaranty
increases
and
i
iawtf
.U.K
i
Ultoxdl*-" "H'j
HJ""4"'
th.
■'
Terms
extended
are
facilitit
ItlllfillllUCIt ACtl
from $4,000 to
$7,500.
Torpwwwt'-""
from 25
Ui H *w»;-
30
to
years.
o..t—*""^-^7;
This,
of
lessens
the
necessity
/
■
for
WE""*"*
1
*"'••"'"rt^sr
Mf r~ «r
^^3.
«f.i I-,
I
and
this
where
happens
«•*
low
—
pay
greater
a
CHp'JjM
cmlwicl
tftfajSz
|
,«,».#o*» »
**
«9
off
-
is
always
of
number
diversification OF
increased number of
people
MARKETS
MEANS PROGRESS
people
buying.
An
CORPORATION
••ttimott
longer—there
will
be
1m1s0a
where
—
period
Allen
W.
Warren
,r#*jwisoa
C0»M*«IO«
is
rate
the
,,D.;i-«*«-£...
___
where the in¬
terest
"""r^-*TTm-
o...-.
cash
equities
>4. iw
»iwi «•«>•»
course,
0,,,-.-
BUSINESS
buying will increase the demand
and
push prices
That's
up.
simple
one
effect
of
the
num¬
for
answer
old
an
economic law and that's the
ber
"the
regulations
new
•«*'*>*
FOR A
on
prices.
far
As
effect
the
as
mort¬
on
financing, I would say that
mortgagees generally have plenty
gage
of
money.
and
scarce
antees
think
the
large—there
are
is
not
guar¬
will
al¬
The
be ample financing.
ways
I
When money
government
that
is
response
my
like
I'd
to
from the
add
a
general
thought:
it
In general I believe that the
housing boom is being hopped-up
entirely too much by the govern¬
ment's
not
policy of easy credit. It is
easy to find other terms that
can
be
compared with those
sored
the
pay you
apply
now
DAVISON
to
money
business
conditions
these
conditions.
That
These
small
23
ssssas=r«£.
down
markets...
over
a
is what
30-year
estate
detriment,
will
all
of
values.
Dovisol
to
depend
little
is
is
cud**""^
go
made purer,
*
materials
chemical
mind. at
use
of
are
raw
supplied by Davison.
truly
a
chemical company's
company.
least,
over¬
THE
interesting,
although
DAVISON CHEMICAL CORPORATION
BALTIMORE-3,
Producers
Boards,
New York, June 22, 1950.
of:
SIIICA
FLUORIDES, CASTING
Remarks by Mr. Allen at the Annual
Estate
MO.V
a
ACIDS,
Convention of the New York State Asso¬
George,
processing industry
real
how much
my
on
Real
others.
The extent of this
frightening, to speculate as
lengths Congress might
of
many
better, cheaper with the
DAVISON is
in the liberalization of housing
ciation
multitude of
CAtAtYStS
what
to
a
petroleum, metals, textiles, surfacings,
building is done! At present there
is no such sign of a let-up.
It
deal with
of the overall chemical
B»VI«®»
period.
residential
the chemical
to
Products of these and many more segments
Such a policy can only result in
overbuilding to the eventual det¬
riment
leading
r®—*1»
automo¬
more
messages
plastics, chemicals and
.ml
happening today in home buying.
A price rise
is not particularly
significant if no down-payment is
required and the purchase fi¬
nanced
magazines directed
in
year
But
rapidly
than
the
supply
and
prices would start climbing again.
Any useful article can have a
virtually unlimited market under
such
past
Davison's
processing industry.
Catalyst*
government
bile demand would increase
during the
over
spon¬
guaranteed loan and the monthly
payments would be only $20.25.
Under
reduced
are
0»«t*n-lla«e
A $2,000 automobile could
bought with no
a
4%,
10-year
originals that appeared
signature
to investigate
were sold on
credit arrange¬
loose
that
homes.
on
government.
II
will
automobiles
same
ments
be
the
by
suppose
advertisements shown here
to
specific subject.
Now
Lake
ittovyy^'^vrrifeAifVV-Mr'riri-Vi-f'
9
(Special to The Financiai Chronicle)
(Special to The Financial Chronicle)
expansion. Unques¬
considerable
Joins
Jose Harris Joins
law
Francis du Pont Adds
directed toward constant
are
and
No attempt is be¬
SAN
banker
Administration
the
lower
the
ing made to stabilize our mort¬
gage boom or any other important
phase of our economy. All ef¬
Co.,
holds recent extension of Vet¬
erans
and
rate the better.
Rochester, New York
Upstate
what
and
repercussions of our housing supply has been
Apparently the ul¬ necessary and has been accom¬
timate goal of our government plished,
but how much longer
housing financiers is to reach that can we continue without suffer¬
point where anyone with a steady ing the pangs of overindulgence?
job can buy a new home with no That to my mind is the most vital
down-payment on a 30-to-40-year question confronting real estate
Government Easy
Credit Hopping-up
Lincoln Rochester Trust
(2669)
GEL, CATALYSTS, SILICO-
COMPOUNDS, ALUM, INORGANIC
FERTILIZER MATERIALS, ASPHALT
COMPOUNDS..
10
The Commercial
(2670)
G.
Continued Piosperiiy Predicted
WRIGIITSON
D.
By Home Punishing Leaders
High activity expected; the main worry being
with their limitation
costs
margins.
and
Estimates
of
forecasts
based
business
American
on
experience in home fur¬
nishings industries were pre¬
sented by the leaders in that
field who attended the Inter¬
national
Home
Furnishings
the
June
Mart
29.
June
through
19
specially
As
com¬
''Chronicle,"
piled
for
the
they follow:
cases.
TUXFORD
business conditions
probably in as
shape as we have seen
the postwar period. Per¬
The general
of the country are
good
a
them in
income
sonal
e
v
are
strikes
horizon
in the
middle
of
a
building
boom; about
ahead of
50%
last
y ear.
Home
Tuxford
Burton
sales
are
tied „ in -v:?.. rather closely with building, and
I predict that we will be wellwith
time to
'
■*
■
the
at
..
of
end
their
rope,
industry was the gov¬
support of cotton seed,
price
not
They put
season.
the seed for the cotton
on
As the
crushers.
oil
may¬
support
a
George P. F. Smith
will
business
for
some
on promotional mod¬
els, where the refrigerator or the
range is stripped down and cost
taken out of
As
•
outlook
have been much in the
the
as
for the
now
of cot¬
cost
same
we
an
price
same
"resales"
termed
lines.
ing
a
However,
hard
better
receivers
the
is
portable
the
industry, bear prices fixed by the
po¬
manufacturers. There has been no
change in that, but the margin of
thing, that is for the so far this year. Sales are way profit has been shrunk and shrunk
ahead of 1949, varying in our ap¬
near future, we are in an election
very materially.
*
*
*
year
and the people in power pliances, from as low as 40% in¬
crease to as high as 183% in auto¬
aren't going to do anything to let
matic washing machines. That is
ELLIOTT WOOD
this prosperity die down. We feel
that certainly this fall will equal a rather fictitious figure, because
President, Heritage Furniture, Inc.,
Another
pessimistic
stories
which
the
last
Our
of
quarter
had
total
1949 and we
spring.
excellent
an
in
figures
nishings will be
even
in
was
which
1948
high.
home
fur¬
better than
all-time
an
the first five
were
very
months of last year
poor
months
for
business,
quarter, it is rather large because
of the apparel situation.
number of licensed FM stations
and
4
coverings, major appliances,
forth.
so
and
5%
When
I speak of a
in the fourth
increase
I believe this
the
fied because of the continued rise
in
orders
commitments
and
for
be
it
the
last year.
was
There will
apparel wool
in
increase
an
somewhere
between
5
and
FM sets in the first two weeks of
8%.
May, 1950 than in the entire month
May in 1949. Moreover, many
television sets incorporate the FM
band.
So, it now seems that long
suffering FM is at last coming
After
all, this country in 1939
produced
80%
of
the
apparel
wool; in 1950 it will produce 40%.
It is
ton
bound to go up.
goods, prices
of
In the cot¬
going to stif¬
are
into its own, and that it will pro¬
vide a steady market for manu¬
fen, too.
*
if
•
.«
washing machine in¬
They picked up rapidly
if
facturers.
■
HENRY BONFIG
H.
Vice-President in Charge of Sales,
Zenith
is
It
Radio, Chicago
J.
LILLESTON
Vice-President
in
Charge of
Marketing, The Paraffine
thing that the
American
press
has
developed
superlatively
swift channels of
communication
and
publication.
O t h e r w ise,
good
a
dustry.
after
that.
So
I
think
the figure
has
Companies, Inc., N. Y. C.
*
Business
months
the
during
should
hard
the
be
surface
gone
next
iii
covering
floor
lieve
particular
our
position to spread their
cost—their overhead, over a lot
more volume.
In our firm, where
it has seemed necessary we have
made price increases up to 5%.
a
1945
In
our
ex¬
pendable income, and that is what
counts, was 1.02%; in 1946, 1.38%;
in
1947, 1.45%; in 1948, 1.42%.
The figures aren't available for
sales
be
in
practically all
That is based
ployment
on
segment
of
the
a
very
consumer
demand
for
ucts.
:
the
petitive
the
some
had
crease
in¬
wages
the
on
has
Albany, N. Y.
We have
come
with larger open-to-buy than we
have in a number of years
We
have taken two positions: Number
1, that there is
going to be
no
three
or
or
five
kets
i
and
A
TEeodore
two markets
we
cents
cost
come
with
something
laid the orders down and
are
and
get¬
is
of
television
1,000,000
become
along the
profit mar¬
notwithstanding
cost
majority of
our
of
1949
a
is
H.
great deal of
J. Liileston
competition
those
products
dollar,
consumer
7,000
receivers.
At
use.
exceeded
end
the
alone
types
greatest
quantities;.
JAMES KENNEDY
Vice-President
of
produc¬
2,800,000
in
the
for
time
and
the
At
the
1949
that
found
had
preferred
there were more than
in
we
tion
and
cost increases
enabled
better
him
to
our
own
tween
firm
one
we
and
six
equipment
price goods
in spite of
have
per
In
had
be¬
cent
in¬
creases.
reau
of Labor Statistics, increased
70.9% from August,
Harold Wadely
1950,
ity
24 V2
"Today, they
cents
are
per
approxi¬
These increases have
more
optimists
frequent during the
„
.....
,
whereas,
increase
1939 to April
This
has
all-commod¬
been
103.9%.
From the time that OPA went out
many
sets,
General
and
Manager, Housewares Division,
Revere Copper and Brass, Inc.,"
predicted early
in
were
year
was
very
old,
we
rolling at the rate of more
sets a week.
Once
than
100,000
more
the experts
chewed
on
their
pencils, and it now looks like 6,000,000 television sets for 1950.
for
As
prices of television
re¬
on
the
with
present day trends.
As
to
doubt
will
be
matter
much
any
housewares.
can
of prices, I
whether there
reduction at all in
the
very
Now, whether
hold their
own or
would
I
increases
rather
in
new
It's
true
methods and efficiencies
manufacture
unit
change.
costs.
On
are
the
lowering
other
our
existence, in June of 1946, all higher
labor
hand,
manufactur¬
merchants, both in the
merchandising and the introduc¬
tion of new products, to keep up
tionable.
much
of
astuteness
and
ers
ceivers, while there are reductions
prices
for
components,
increases, due to pension
commodities
have
increased
and
retirement
plans, etc., are
35.4%, whfreas furniture has in¬ keeping operating costs up.
The
creased only 27.7%.
net result should be a fairly stable
of
a
great deal on the
availability of steel which has
been very difficult to get, and also
in certain strategic models, I don't
that
N. Y.
The outlook for this business is
dependent
of 1950 is proving
devastating. From the
pencil chewing experts came a
prediction of 3,500,000 receivers
produced for 1950. But before the
current
Rome,
the
as
year
more
even
foresee
the
had
as
the year.
Furniture, according to the Bu¬
$1.
at
almost half again
materials.
conservatively
these increasing cost factors.
were
year,
control
increase in
very
in
ican
mately $1.
ting the merchandise and
selling last
got off to a limping
over
all
per
Simpson
in
there
and
between
Television
end of 1948,
materials,
under
has
1939, South
m e r
pound.
have
of
efficiency
at
purchasable
A.
different typ?s
0 f
products,
000
people
have been absorbed by t{ie manu¬
facturer and I would say that his
profits
wools
-last
we
many
together
Wood
The
with that
excess
In
industry
have
are
the
ourselves. And
the
four
break,
cover
pound. To<jlay,„
n
succes¬
,
have
to
had
30
mar-
the
we
come
approximately
sively
by
waiting for a
price
in
lot of wool has
new
purchased
have
"
As each
wool could be
short-changed
ourselves
cost
creasing.
I n
1939,
India
haven't got it.
We
WADELY
have been de¬
you can't sell
it
i f
you
few
past
tne
*>
our
prices; and,
Number
2,
what
surface
will tell which of the many
in
keep
President, Firth Carpet Company, line, has affected our
New York City
gin considerably. However, I do
think that the industry has done
The prices of rugs is increasing.
a marvelous job of
keeping prices
even
in
break
the
in
quick
hard
<
In
sets were
built. In 1947 production began to
roll, and we produced about 270,-
to
the
*
-r
into this market
at
busi¬
ness.
start in the last part of 1946 when
level
order
prod¬
our
SIMPSON
President, Mayfair, Inc.,
a
years.
the increase in
A.
take
happened
n
Let's
look
upper
trade
con¬
Elliott
THEODORE
n-
in
y
the
satisfied. That,
a
dollar.
HAROLD
i
r
history.
Bonfig
ex¬
to
t
s
America
C.
H.
We have
tent.
em¬
u
going to
the bulk
of
fastest
d
bid¬
uct is
odds
growing
ding for labor
to
all
sur¬
industry
get
is
by
hard
is which prod¬
it
print.
Television
indus¬
the
by
time
reaches
has
earnings are at a
high rate; houses are being built
in
greater quantities than ever
siderable
small
is
face
com¬
and
before and this will create
That
the
hopelessly
out of date
overall
and
lines.
our
the fact that
with regard to
cost
a
try
I would expect 1950 to
considerably better year than
a
only catch
has
made for
months.
10%
1948.
in
will
1949, but we think it is off about
from
been
factor
slip drasti¬
cally. Obviously, refrigerators are
sold
primarily
during
warm
1949
of
percentage
that
it
plant,
With
industry.
The
indus¬
be
it
six
good
very
business just as it will be in gen¬
eral
vision
direct cost increase
a
said
today
wage
effect, although
into
is
here
about the tele¬
try might well
minimum
75c
aggressive merchandising,
however, there is no reason to be¬
been in
the
hasn't been
in
is out of line.
lot of manufacturers
have been doing a great deal more
business and consequently
have
A
what
High Point, N. C.
Since
on
is
Monthly production figures tell
story: April, 1859 was more
than double April, 1949; and the
industry produced a third more
capital goods. I believe that dis¬
posable income will be higher
than
air
nearly
two-thirds
greater than last year.
optimism is justi¬
the
automatic
fol¬
lowed the closing of a few FM sta¬
tions earlier this year.
.
have
revival
FM, which is occurring in spite
of
do¬
are
we
line
is
Another
sus¬
demand, for
Although the FM broadcasting
industry is still in a somewhat dif¬
ficult
position,
the
number
of
stations operating profitably is in¬
creasing every month, and the
floor
by the
industry
television
T. Fine, Jr.
jonn
in
growing
year
as a
for advertising purposes. The
standard brand of merchandise,
is
is
and
ago
what
business
the
to
sition
come.
it.
linters is.
ton
and
business.
our
than 1949.
year
important factor in the
tained
of
soft
-
which had never been done until
this
greater this
An
radio
apparel
industry is being
bedding
ernment
cuts, except
fur¬
nishing
favored
Wrigntson
outstanding item
of cost in a mattress, or in any
be some price
double-duty upholstered furniture,
cuts.
They are not justified, and
it is full 50% higher than it would
it is rather doubtful to me if any¬
be in a normal market.
This is
thing substantial is going to be
reflected in prices on items called
done in that direction.
promotional advertising merchan¬
It
is hard
to see how there
dise. The public can't buy a pro¬
can be much in the way of price
motional
piece
of
merchandise
and
are
we
*
■
.
D.
G.
television, and even
is a large de¬
there
areas
for
third
4
over
business
of
are
production is running about one-
an
portion of
vol¬
in
There
ume,
our
industry is currently
producing two radio receivers for
every television set made.
Radio
last year.
The largest
the bedding
r o-
there
be
the
on
ahead
business. 1
portables, radio-phono¬
graphs, and FM receivers.
Al¬
though radio is now running far
behind television in dollar vol¬
retail
5%
TV
mand
the
between
of television, we
forget that radio is still
have
not
in
in
show
and
is substantial¬
about
and
moving,
It is
the worst thing that happened tq
are
is
dise
major
no
of
terrifically with cost,
and the industry, by and large, is
absorbing these costs and are just
merchan¬
our
There
high.
is
squeezed
indus¬
r-p
will
year
The
lower
duced,
all-time
an
last
do
retail
overall
our
It
get what
sections of the country that
many
third
that
industry.
you
dazzle
not
thriving
a
2% in-
a
the
safely said
for.
the
must
fourth quarter
s
ahead of
and
way
ume.
How¬
we
our¬
will
crease
as
i
excellent.
1948
very
other
show
Simmons
Company
ly
like any
ever,
assure
merchandise
in
pay
In
to
sufficient
the
and
will
much
prices.
o
which
billion
just
ufactur-
support
that
quarter
are
overall
ing economies
around
is
and
make
man
try, if
running
$215
is
you
considerably
up
of
going
to
be
good, and stay
good, look
the
Fundamentally, there is no rea¬
son
to expect any price changes
in major appliances.
Everything
which
Drexel, N. C.
that
things
business
gone
buying
are
selves
set-up
be
you
The only in the fall because we believe that
warning I might sound is the fall business will be very good.
We
that when everybody becomes ab¬
believe,
solutely unan:
" for example,
Mich. concerned,
Borg-Warner Corp. Detroit,
can't
Company,
Furniture
SMITH
P.
F.
GEORGE
has
Vice-President and Sales Manager,
Drexel
if
President, Norge Division of the
and
BURTON
♦
if
We
tremendous
out! Insofar
into January
heavily—up
some
Merchan¬
Market in Chicago's
dise
rather
in
committing ourselves
are
City
been
Thursday, June 29,1950
...
can
and still is tremendous.
imous
We
it.
has
price
Vice-President,
Carson Pirie Scott and Co., Chicago
note of
profit
on
First
Simmons Company,
New York
rising
JOHN T. PIRIE, JR.
Senior Vice-President,
Business
anfl Financial Chronicle
they
not is ques¬
look
for
price
generally.
I
do
not believe there will be substan¬
tial increases, but in
view of this
and
last round of wage increases,
certain increases in steel in vari¬
ous
territories, I think the manu¬
facturers
are
finding
can't absorb that without
affecting
out
they
seriously
their overall profits.
4
Volume 171
Number 4920
Continued,
from
.
The Commercial and Financial Chronicle
..
7
page
(2671)
The Association
representation
direct
has
the
Executives.
following
organizations:
outside
Manufacturing Chemists Cite Need
also
National
on
of
duty
It
showed
the
rates
Fire
Protection: Association, As¬
sociation
of American Railroads
of 1922 and
Tank
Institute, National Industrial Traf¬
to
Car
mittee
of
Committee,
the
of
ing
Packaging
Safety Code Com¬
American
Confer¬
would
principles to specific problems. list of chemicals used in foods has
ence of Industrial Hygienists.
an increasing tendency
been prepared and circularized to
Many conferences with govern¬
toward Federal and State legis¬ member firms.
Steps are being mental
agencies have been held
lation
to
require precautionary taken to supplement and complete
during the past year by Associa¬
labeling of hazardous chemicals. this list.
tion
The committee is acting in an ad¬
visory capacity in such
order
to
promote
uniformity.
extremely
in
cases,
and
accuracy
This is becoming
important activity
an
cf
this committee.
Revision and
Patent
tee
of
The preparation by the commit¬
warning labels for specific
chemicals
continues
the
as
need
Minimum
Wage
the
on
the
the auspices of
cil
16,
1949,
codification
larly
of
Patent
have
in
the National Coun¬
Law
Associations.
Other committee members include
those
bureaus
moted
patent laws, formed under
ufacturers
Nov.
proposed
representatives.
tions with these
Association,
for
better
been
which
The
rela¬
again
of
our
Association, Man¬
Aircraft
Association,
Act
to record that
firms report satis¬
Public National
Association
the
Statistical Activities
—
the "peril point"
Unfortunately, the
chemical
the
drafts of the
expressed opposition be¬
of proposed change in valu¬
H duty
purposes is based upon
"American selling price." The bill
pro¬
"export
1949
that this be changed
value,"
provisions
with
not
of
in
the
to
keeping with
I.T.O. Charter,
compensatory
rate
adjust¬
ments to be computed by the Tar¬
iff Commission in order to main¬
tain current tariff levels, such ad¬
justments
was
to
Executive
announced, to be held
at
Torquay, England, beginning
Sept. 28. In the subsequently pub¬
The As¬
of
reviewed
proposes
During the early part of 1950,
sociation prepares and issues each
month a Statistical Report on Bus¬
iness Conditions based on official
Prior to introduction,
for
re¬
"third round" of tariff negotia¬
tions
re¬
Means.
cals. Under the present Tariff Act,
the valuation of such chemicals
provision.
a
and
and
ation methods for coal-tar chemi-i
passed by the 81st Congress,
contain
this
important
as
did
House
Ways
—
and
cause
early in 1949
Congress, through the
of
vision.
is
gratifying
many
It
industry
bill
Association
tention
of benefits
shared.
the
the
representatives
be exercised.
Agreements Extension Act by
in
t'o
Committee.
Ways and Means Commit¬
tee, to maintain the safeguards
incorporated in the 1948 Trade
maintaining service
industry, have pro¬
understanding and
have
troduced
ferred
of
House
agencies, particu¬
productive
all
Our
should
petitioned
Manufacturers
Redetermination
On
The
rates
duty which
permissible, if full au¬
be
tariffs
factory results in the Association's
representatives of the Aircraft In¬
handling of matters of individual
dustries Association, Automobile
concern.
arises.
Chemical
Codification of the
—
through its Patent Committee, has
joined the Coordinating Commit¬
'
tee of
Laws
the
Simplification
Early
in May, a government-sponsored4
customs simplification bill was in¬
thority to reduce by 50% of 1945
There is
,
show
Alli¬
-
Customs
1930, and those result¬
the
reciprocal
trade
from
Chemical
and
Inc.
ance,
agreements of 1945, 1948 and 1949.
An additional column was inserted
fic League, and
Of Liaison with Government
S.O.C.M.A.,
all items in the chemi¬
on
cal schedule under the Tariff Acts
11
Order.
be
promulgated
by
Tne Association will oppose the
of Manufac¬
Division, U S. Depart¬ turers and the National
bill in case it is cleared for hear¬
Security
lished list of items to be consid¬
Labor, conducted a hear¬ Industrial Association.
ing, and urge that "American sell¬
Work of
ered fcr possible duty reduction,
statistics relating to production,
ing in Washington for the purpose the
ing price" valuation method not
committee will
have to do
were
inserted practically every
of receiving testimony preliminary
only be maintained for coal-tar
with the proposal to codify and employment, payrolls, hours and
dutiable chemical contained
in
to a redetermination of the chem¬
earnings, wholesale prices, and
revise the U. S. patent laws con¬
chemicals, but be extended to
Schedule I, with the exception of
the cost of living.
icalindustry minimum wage un¬ tained in a
cover
all
other
chemicals
now
committee print issued
coal-tar dyes. In a prepared state¬
der the Walsh-Healey Public Con¬
A third edition of "Chemical
subject to other valuation meth¬
during May, 1950 by the Subcom¬
ment filed with the Committee for
tracts Act. Earlier in the year, the
Facts and Figures" is being drafted
ods.
A statement has been pre¬
mittee on Patents, Trademarks,
Reciprocity " Information
during
M.C.A. had organized a panel, at
pared and will be presented be¬
Copyrights and Revision of the * by the Washington office staff in May, the Association
protested the
the request of the Secretary of
fore the Ways 'and Means Com¬
Law of the Judiciary Committee, order to bring up to date statisproceedings on the grounds that:
Labor, which met with Depart¬ House
mittee at the proper time by the
| tics which were carried through
of Representatives.
:
(1) negotiations were scheduled
ment and Union representatives
the year 1946 in the previous vol¬
Chairman
of
the
Association's
Cooperation with other Organi¬ ume. The revised edition will be in some cases on commodity
to agree on a revised definition of
Tariff Committee.
zations—The Secretary is a mem¬
groups or "basket clauses," rather
the
industry and a wage data
ready for distribution about Sept.
ber ef the following committees,
than on a selective product-by¬
Legislative Activities
questionnaire. This questionnaire
1, 1950. 1
*j
t*1'.
is
which function within the sev¬
product basis, and (2) multilateral
was sent
In connection with Federal leg¬
subsequently to member
Tariff Activities
arrangements were being exer¬
firms and formed the basis for the eral government departments: (1)
islation,
reference
has
already
Products
Trade
Agreements
Association's presentation at the Chemical
Agreements — Develop¬ cised rather than the bilateral been made to current activities in
Committee, U. S. Public Health ments in the field of international agreements stipulated by the Tar¬ the
hearing.
food-chemicals, tariff and in¬
Act.
Both
procedures
are
Because of the importance of Service, which committee admin¬ trade during the past fiscal year iff
ternational fields.
Hearings were
labeling
agreements
be¬ threaten serious consequences to contrary to existing statutes and
the proceeding to the chemical isters
attended and testimony reviewed
tween the Surgeon General and the American chemical industry follow instead the General Agree¬
industry, the Board of Directors
by the Association's staff, and re¬
authorized retention of counsel to producers of designated products; if
permitted
to continue
their ment for Tariffs and Trade, which,
ports made
to member firms
assist
the Association Secretary (2) Post Office Advisory Commit¬ ; present course. The Annecy "sec¬ to date, has not received the ap¬
through the medium of the regu¬
in presenting the industry's case tee, which advises the Postmaster ond round" agreements announced proval of Congress.
lar bulletin services or
Contracts
ment of
r.
J
.
,
h
■
,
special
Board. General
re¬
on
mailability of chemi¬ j last October, reduced U. S. duties
International Trade Organiza¬
ports. Among the many bills of
products; (3) Federal Speci¬ on scattered chemical products tion—In a brief submitted to the direct interest introduced were
in
19
industrial relations personnel se¬ fications Board Advisory Commit¬ contained
paragraphs
of House Foreign Affairs Committee those
relating to Stream Pollution,
Treasury
lected from member firms had tee,
Department;
(4) Schedule I, some of the cuts going on April 28, the M.C.A. opposed Air
Pollution, National Science
to 50% of the Jan. 1, 1945, rate, ratification of the Havana Char¬
come to agreement on the nature President's Fire Prevention Con¬
Foundation,
Basing
Monopoly,
of the testimony to be presented. ference; (5) Interagency Commit¬ the maximum reduction permitted ter.
Points, International Trade Organ¬
tee
on
Ammonium Nitrate;
(6) by law. A full report of the An¬
On May 12, Dr. Elvin H. Kill-
Public
the
to
Earlier,
Contracts
special
a
committee
of
cal
Other Activities and Services
Chemical
,
Chemicals in Foods—During the
past year, considerable legislative
Industry Advisory Com¬
products
and the
of:
During
study,
tion's
was
on
sent to Mem¬
Oct.
(jtctober,
a
11,
1949.
43-page
ization,
heffer appeared before the House
Foreign
compiled by the Associa¬ posing
staff,
fwas sent to Member
Charter
Affairs
the
Committee,
present
in
behalf
form
the
of
Social
Customs
op¬
Plant
the
Minimum
of
Simplification,
Security, Synthetic Rubber
Disposal,
Wage
Transportation,
and
Service.
M.C.A.,
of chemical additives
This has taken the
hearings before the
(1)
Food and Drug
Administration
for
standards
tolerance
agreements
Executives
the time of harvest,
up to
use
in foodstuffs.
form
ber
mittee, Munitions Board; and (7)
activity lias Advisory Committee on Chemical
been
evidenced
concerning the Reports, Bureau of the Budget.
setting of Federal residue toler¬
ances
on pesticides
used on food
administrative
and
necy
about
on
75
pesticides under Sections 406 and
701 of the Food, Drug and Cos¬
metic Act.
Hearings began Jan.
17 and are expected to continue
through June, (2)
proposals to
amend
the Food and Drug Act to
provide for certification of chem¬
icals
used
the
to
new
on
foods
similar
requirements
lor
MANUFACTURERS OF
CHEMICALS
FOR
AND
INDUSTRY
AGRICULTURE
the identical
(3)
drugs, and
Keefe
in
or
current
Sabath
Resolutions,
H. R. 207 and H. R.
323, to create
and
select
a
vestigate the
extent
Committee
House
the
of
synthetics,
in¬
to
effect and
of chemicals,
"nature,
use
insecticides
was
favorably
reported
House
Rules
Committee
In addition,
12.
search
the
steadily
up
on
Works
the
the
May
the National Re¬
of
a
.
data, coordinate
information, and possibly support
research needed to fill gaps ir«
knowledge on the toxicities of
to
-
will
the «above
be prepared,
developments
an
active status.
of
executives has
to coordinate
•case
task
under
group
is
a
of
nutritional chemists, toxicologists,
lawyers and chemists.
t
» ;
k
AND AGRICULTURE
Ammonium Nitrate Fertiliier • 83%
assume
will be required.
made
;
.*
Amnioniorifi
should
been, appointed
this
(,
.
••
A top committee
subcommittee,
nation.-
.
preparatory steps in
appearances
Working
.
m
The Association has taken steps
see to it that the chemical in¬
dustry
of the
yields at lower cost,
pesticides and chemical food ad¬
*
life
dustry with better raw materials
assure • Agriculture
greater
committee to
available
ditives.
economic
Spencer products, turned out by
the ton and tankcar, provide In¬
has recommended
Council
setting
review
by
Chemical Company's
expanding Jayhawk
bas become a vital part of
Spencer
fer¬
and
tilizers upon the public health and
welfare."
The
latter
resolution
up
A partial
SPENCER
Executive
and
Works:
CHEMICAL
COMPANY
Sales Offices: Dwight Bldg., Kansas City 6, Mo.
Pittsburg, Kans.
Henderson,
Ky.
Parsons, Kans. • Chicago, 111.
•
•
Charlestown, Ind.
Nitrate Solution •
Anhydrous Ammonia • SP5NSOL
(Spencer Nitrogen Solutions)* Aqua
Ammonia V Refrigeration Grade
Ammonia • Synthetic Methanol •
Formaldehyde • FREZAll (Spencer
| Dry Ice) • Liquid Carbon Dioxide.
Selective
^*-vX
\
The-Commercial and Financial Chronicle
(2672)
12
the
changes, President Kenneth S.
stated, would be to dis¬
tinguish between the five "funds"
Gaston
Mutual Funds
NAT 10
which
with
By ROBERT R. RICH
ities
SEC Frowns On
of
Details
prospectus
NATIONAL
RESEARCH
and
program
Comparison With Averages
request
upon
120 BROADWAY. NEW
believed to be a current
It is
SECURITIES &
CORPORATION
YORK 5, N. Y.
the Securities
Exchange Commission staff
interpretation
and
by
in their promo¬
that mutual funds,
tional literature, may not compare
their
with
average, i.e.,
record
performance
"unmanaged"
any
stock av¬
Dow-Jones or like
the
erages, unless such comparison is
supplemented by a further com¬
parison among the
records of
other Funds with similar invest¬
objectives, and unless such
comparison includes other stock
averages which may not place the
Fund's performance in as favor¬
able a light. It is further required
that
the
depicted
performance
record be over the entire life of
ment
a
INVESTORS MUTUAL
Dividend Notice No. 39
The
Mutual
able
Directors
declared
has
fifteen
of
dend
on
of
Board
July
on
21,
record as of
Investor:;
quarterly
a
cents
of
1950
five
1C5X
the
Principal Underwriter and
Invetlmenl Manager
or
or
years
multiple
a
sales
Such
literature
the invest¬
policy and the dividend pol¬
icy of the Fund. The SEC staff,
course,
only makes specific
rulings on specific sales material,
of
Syndicate,
Minneapolis, Minnesota
communications
these
and
are
Since investors
behavior
this
of
Industrial Stocks, as a measure of
today
received
than
and
the
lax
in
merits
vice.
The
funds
are
advantages of mutual
that it seems un¬
such
represent them by distorted dia¬
grams,
promises of spectacular
behavior or by a fragment of their
record—which
performance
cludes only
the
A
'
Registered
Investment
1
Company
J
from
most
behavior.
A
investment dealer
Huch W. Lonc
Wall
1-9% below
20%
were
10-24%
below
or
31%
were
25-49%
below
65
or
35%
were
50%
below.
and
has
that every investor, before pur¬
chasing mutual fund shares, should
sign a statement to the effect that
As
LOS ANCELES
CHICACO
Yr '•
*'ji
y>
Fund
Putnam
notes:
,
"In
other words, two out of
the
stocks
were
one
for 50%
If
three of
selling 25% or
their
below
more
and
Incorporated Booklet Reflects
Investors,
Incorporated
Parker
latest
has
listed
series
in
Don'ts
in
Do's
of
Buying
should
asked
and
listing,
Mutual Funds which every
tor
to
of
mutual
inves¬
before
know
he
is
could
of what
this
a
mutual
suggestion
to an
idea is good.
should
used
to
retire
a
like
debentures maturing
and
$17,505,000
Distributes
is "new money."
As of the close of business
1946-47
out of three
or more
we
aren't
Estabrook and
tributing
a
Company is dis¬
complete brochure
"A
tures
outstanding
amounted
Fund
on
WEST
vestor."^'V>'
is
with
entitled
£7/ie Seorae
"PUTNAM'
LEXINGTON
FUND
TRUST(FUND
possibly
<?/ &o4ton
to
carry
Putnam Fund Distributors. Inc
the
basic
30 State Street, Boston
be
difficult, in
a
prospective shares
a
mutual
funds
which
glossed
have
over
been
in
the
search
was
his
income
over
a
highs,
Fund's
Office
York
New
or
be
the
from
of
period
This is not likely to be the
time.
situation if
an
investor must
un¬
disillusionment
based
originally erroneous im¬
pression of what funds can and
funds,
upon
may
a
~
IRA HAUPT
& CO.
Members New York Stock
prospectus
your
Exchange
or
111
Broadway, New York 6, N. Y.
.PHILADELPHIA
an
cannot do for him.
Group Securities Holders
something
Create Common Fund
Affiliated
same
as
low
average
this
week
as
the
would indicate.
Fund, Inc.
Prospectus
upon request
the investment held for the fund,
was
voted
by
shareholders
at
a
special meeting June 26.
Management and Selling
Group Securities' shareholders
responsibility of Mutual also voted to change the names of
Funds towards the investing pub¬ four
other
classes,
identifying
lic should not stop with the activ¬ them as "funds." One result of
The
Lord, Abbett & Co.
—
Chicago
—
Atlanta
—
Los Angeles
Certificates of Participation in
investing their capital
take
pleasure in announcing that
BONDS
(Series B1-B2-B3-B4)
HERMAN A. FELDMANN
INVESTORS
^(Series K.1 -EL2)
has become associated with
us
COMMON STOCKS
(Series S1-S2-S3-S4J
Tke
may
as
Vice-President
be obtained from
Keystone Company
of Boston
50
from
Congress Street
A
Diversified Investment Company
Prospectus
be obtained from your local
or The Parker Corporation,
200 Berkeley St., Boston 16, Mass.
Distributors Group. Incorporated
may
investment dealer
63 Wall Street, New York 5, N. Y.
Boston 9, Massachusetts
d&itiiimm
""T:'::
QLW jsMTY^Fl.FTH
ANNIVERSARY
_
investment dexri.f
selling
below."
for
of
Prospectus
obtained from
INVESTMENT FUNDS
Prospectut
Waddell
Reed, Inc.
-(svV'
<
POINT, Neb.—Ralph M.
Tomlinson
-
PREFERRED STOCKS
to
$561,430,000.
Special Program for Each In¬
New York
IN
July 4,
1950, the total amount of deben¬
'Special to The Financial Chronicle)
Life Fund Brochure
Creation of The Common Stock
might indicate that,
while many stocks were not as Fund of Group Securities, Inc.,
high as in April as the D-J Aver¬ and adoption of a policy allowing
age would indicate, they probably broad industry diversification in
Custodian
of
July 3, 1950,
obversely,
Keystone
was
amount
While
seems
not
were
fund is.
extreme,
"sales" talk to
Both issues
impression
erroneous
things
It
is that the
then
not
1951.
3,
The idea
time and the like.
an
debentures due Dec. 1,
and $27,795,000 1.40% con¬
solidated debentures due April 2,
1950,
Joins Waddell & Reed
price fluctuations, varying yields
receive
financing totaling $52,520,000,
consisted of $24,725,000 1.35% con¬
buy.
Estabrook
to include
fund shares
The
par.
contains the facts about
briefly,
made
was
June 20 by M. G. Newcomb, New
York fiscal agent for the banks.
July
Investment
This
Shares.
Company
the Federal
Banks
dated
Corporation Letter,
a
Intermediate
1950, and were placed at
its Of the proceeds, $35,015,000
Responsible Selling
'
good in every situation, this study,
*
Funds
.'-J,
•••-. 1
he understands the character'sties
dergo a period of disillusionment
concerning
his
investments
in
•
Street, New York 5
made
been
more
or
:vvV: v>
Company
INCORPORATED
48
were
or
59
from
or
.
Massachusetts Life
suggestion
occasionally
37
authorized
any
.
offering of two is¬
of debentures of
purchaser, to indicate facts about
7%
Available
in¬
favorable
past in sales literature—the fluc¬
stocks," discovered that the per¬
tuation in price, the variation in
centage difference between the
income, and similar "sore po'nts."
highest 1946-47 prices and the
It is only common sense to rec¬
closing prices on April 19, 1950,
ognize that an investor can be a
were:
long-term assets to a fund if he
14 or 7% were above 1946 highs
can be persuaded to invest a share
13 or
Investors, Inc.
•••
A successful
sues
solidated
fund."
mutual
••"."j.;-•
warranted and undesirable to mis¬
reported in 1946, Putnam Fund,
in a study of "188 representative
Fundamental
,
their
on
investment de¬
an
as
to
desirability
the
selling Mutual Funds
real
be
to
of stressing
matter
April 19, the average reached 215,
a little above the last high
point
descriptive material about
[
recently
was
scrutiny of the Putnam
Fund research staff. Although, on
other
of
themselves
Funds
the
distributors
their
of
indication
no
responsible selling by dealers
salesmen, this is no reason
for
under the
and other
prospectus
fluctuations,
price
for the latest
n;,v'
of 30
Dow-Jones Average
The
send
the
While this writer has
importance.
investor
Dow-Jones Average
own
in
element
Gaston said, "will
Group
Securities'
structure and permit greater lati¬
tude to
investors in using this
Fund's industry is of considerable
behind this suggestion
Putnam Fund Studies
its
generally in
are
a
Thursday, June 29,1250
FI8 Banks Place
to indus¬
as
17 classes identified
single
industry.
"The
changes," Mr,
simplify
the
contact with Funds through deal¬
ers
and securities salesmen, the
over
entirely confidential.
in
1,1
management
sphere.
also include reference to
capital structure,
ment
INVESTORS DIVERSIFIED SERVICES
Investors
a
ten
thereof.
should
as
minimum period of
cal, over
H. K. Bradford, President
Established 1894
and if this is impracti¬
the Fund,
pay¬
shareholders
to
Juno 30,
divi¬
share
per
of
diversified
are
try, and the
...
v:
2, PA,
&
Volume 171
Number 4920
.
.
.
U.
The Plastic World oi Tomorrow
down
ously.
drain.
a
well.
was
This
task
because
of
prediction is easy
lives
our
have
already
been influenced by the plastics. In
fact
you
have
only
to
look
around
to
your
homes
own
catch
r r o
'
w
tains
s
rial
the
that Mr.
Powell
cre¬
ated.
down
to
yourself
A
W.
Kaempffert
blast
on
with
coated
Even
bristles
are
an
he
stressed
must
make
your
the increasing
are
turn
the
on
scarcity
drain.
a
will
air
The
hose.
down
run
hot
of
*An
The shaving-brush
manipu¬
bright plastic handles.
the
brush
we
has
a
tradition
of
five
"Some
years
dry
and
good manners.
first
it
to
see
doing is right.
The best possible public relations
activities can't make wrong right.
(3) It
be
is
sure
what
we
right
are
we
equally
that
the
right.
Doing the
but having it mis¬
thing
understood
is
bad
very
"Recently
of your officers
some
NEW
H.
their
one
setting down:
of the most ap¬
pealing pictures of the chemical
industry
is
the
inexhaustible
frontier of opportunity to improve
the comfort, health and happiness
of
the
American people.
Into
that
general
picture,
increased
employment
in
a
safe
of
and
men
and
Joseph
P.
&
Co.
of
Minetree
Rouse
field
office
to
day
Jackson
and
nia
annual
the
at
Hawley
held
Club
at
were
Equitable
of
Vice-President,
Corp.,
and Louis F.
Others
meetings
Country
P.
Securities
Klein of the Hiber-
National
Bank,
Secretary-
Treasurer.
1
New
were
board
Leon
J?
:
meyer
Glas
E.
chosen
members
Newman
of
Kohl-
.
& Co., R. Jeremy Glas of
&
money
Co.,
T.
Feibleman
J.
T. J. Feibleman flz
exciting life-work
of
and Wilbur
Jesse of Waters & Alcus.
naturally.'"
comes
the
of
Orleans, suc¬
Steiner,
Lakewood
'I think that
New
ceeding
Arthur Page, who for many years
was in charge of public relations
statements is worth
President
elected
Club of
elected
the American Telephone and
Telegraph Company.
One of his
Weil & Co. has
of
been
respective public rela¬
tions
directors
had
the
great
pleasure
of
sitting down with
for
La. —Walter
ORLEANS,
Weil, Jr.,
Bond
public
relations work.
and
Elects New Officers
important to
impression of
is
do
New Orleans Bond Club
>.,1
,
A
every¬
syn¬
and toothbrush that you
have
that
should
We
what
thing in five minutes.
stool
thetic plastic.
late
around
will
water
dry
—
what?
point
that
sound program
a
are more
simply
sit
You
the
was
education;
ago,
after
cost of wood that in another
consulting with various people, I
generation plastics will be used set
down
some
thoughts
for
throughout the house. Wall panel¬ our
company.
We believe those
ing, furniture, upholstery, rugs,
thoughts have stood up.
Perhaps
draperies — all will be made of
you would like to hear them:
waterproof plastics.
To clean a
(1) Good
public
relations
is
room
the mistress of the house¬
hold in that servantless day will simply a matter of good morals
are—
of
needed
public
and
cur¬
what?
Syn¬
thetic, water¬
proof mate¬
kind
of
expansion.
It can work miracles.
likely to be of some Let us tell
that story so that all
synthetic fiber.
can hear.'
show¬
bath
tumbler
the
plastic.
clear the stake everyone has in
dining our
situation; and he concluded:
room. The curtains look like silk.
'Our industry is new and young
Perhaps they are. But if your house and vital.
It
Glance
Such
Your
that
one
is of some unbreakable
they
world.
er
to
ten
are
I recall his remarks very
pointed out that what
He
is furnished like millions of others
a
glimpse of to¬
rn o
mouthwash, but the chances
your
(2)
Inc.,
'•essentially," said Mr. Merck, "I
only reemphasizing what Mr.
Munson said and urging as he did
that the subject be pressed vigor¬
Kaempffert in visualizing plastic world of tomorrow sees,
among other things, the mistress of house simply turning on
run
Chemicals,
am
Mr.
letting water
Industrial
Vice-Chairman of the Board
of Directors of the Manufacturing
Chemists' Association.
By WALDEMAR KAEMPFFERT *
hose to clean her home and
S.
and
Science Editor, The New York "Times"
13
(2673)
The Commercial and Financial Chronicle
the
of
tooth¬
synthetic. Yoh' rhay use
old-fashioned glass tumbler for
Chemical
Mr.
from
extract
talk
presentation
Kaempffert's
June
on
1
Hotel
at
Pierre, New York City, informing George
M.
Powell, technical head of vinyl coat¬
ings research of tne Union Carbide and
Carbon Corp., that he was designated for
the ninth year to receive the Jonn Wesley
Hyatt award.
Industry's Primary Task Is to Earn
Public's
Long-Range Confidence, Says Merck
President of Manufacturing Chemists' Association says growth
of
largest of American industries brings problems that require
Stresses good public
v
high opinion of it in minds of people.
a
J
<
■" v-
;
relations.
chemical
The
industry's
num¬
ent
from
fully
we
look
of
the
industry's
efforts to achieve cleaner air and
aware
cleaner
streams,
prove
than
ity
lenient and
to
fear
ARE MAKING TOES
LAST LONGER
inter¬
favor
our
Merck
pointed
chemicals had been used
rather
out
that
in foods
for
human¬
in
I
occasionally
not."
Mr.
and
think.
we
things
be
to
things
lengthen
serve
at
pret
records,
lives
what
through glasses that are too rosy,
and
in our public relations are
inclined
im¬
safety
HOW TREES
standing with the public is differ¬
ber-one task is to make the public
many years and
that longterm
feeding tests had proved
count¬
less
other
these
ways.
George
injurious as they were effective,
particularly many of the newer
chemicals,
including
vitamins.
"But I doubt very much," he con¬
tinued, "if the wide acceptance of
these would have been so rapid
W.
Merck,
C h airman
the
of
Board
Directors
of
Merck
of
Co.,
&
Inc.,
marked
W. Merck
George
an
address be¬
fore the
Manufacturing Chemists'
Spring Lake, N. J.,
Association in
June
on
19.
ident of
Mr. Merck
is
Pres¬
the Association.
that
confidence, Mr. Merck said
the
industry's accomplish¬
in the technical laboratory
regarding such
.and
pollution
matters
be shown that
can
safety
as
abatement
can
better diets
"we
doing
are
the right thing."
"Public thinking," he said, "can
and
we
should
leaders
are
rivers
and
aware
be made
in
of the air; leaders
that
of
our
care
and
streams
purifiers
in safety meth¬
our plants;
ods inside and outside
4and
pioneers in making the re¬
of chemistry serve man.
sources
"The
about
enrich
know
industry is that
our
chemical
industry
fast that most of
we
are
we
don't
strength.
own
The
has
us
grown so
fail to realize
about the largest industry
United States today, and
growing.
Size alone brings
its own problems, so let us exert
in
the
still
ourselves
deserve
and
and
in the minds
"The
me
^ination
gain
us
we
a
it
that
we
high opinion
of the people.
second
about
to
see
thing that
is that
find
would
of
the
na-
OTHER USES FOR WOOD CELLULOSE
Our research
of types
tain
of the
chemicals
use
of
a
number j
end products made from it.
cer¬
and
minerals
—
developed
of highly purified wood cellulose to j
give best results in the manufacture of the |
many
case
staff has
vitamins—in bread, a most effec¬
For
tive nationwide
rayon
campaign of edu¬
making viscose
yarn
for
cating the public was carried on
and this won widespread public
textiles,
backing.
Many research accomplishments have, over a
period of years, improved the wearing qualities
of automobile and truck tires.
None, perhaps, is
more important than the
adoption of viscose rayon tire cord and fabric.
Highly purified cellulose—derived by chemically
processing wood — is a basic raw material for
making these strong, tough cords.
the brand name,
"The
more
realize
we
study, the more
we
the
for
need
ply
were
us
be¬
yarns
in
the
from
We should be alert to
and take them into
making.
such
they
moves
consideration
sensing such
them is
a
in
making
a
fibers
are
and
made
Rayonier
"RAYACETA"
Rayonier does not make tires or tire cord. We
highly purified wood cellulose used
by the textile industry in producing viscose rayon
plans;
do make the
and gauging
most important part of
H Cellophane is made
of
example
mass
of
a
tidal
cords and fabrics for the tire manufacturers. This
move
sentiment is. that for
servation of
natural
con¬
resources.
I
think everyone recognizes the re¬
was
product branded
I from still another
"An
of viscose tire cord
use
withstand heat and
to
fatigue. Today,
these high-strength yarns are used to lengthen the
life of both natural and synthetic rubber tires—
for passenger cars as well as for trucks and buses.
waves
management.
synthetic rubber tires for heavy duty
introduced,
essential
under¬
Acetate
realize
When
were
"HICOLOR"
thinking and emotion hit
we
sup¬
product with
a
standing trends in public opinion.
Some tidal movements of public
fore
we
cellulose
p type of purified
—
its
brand
'I wood cellulose—
—was
M "RAYAMO"
name
is
"RAYOCORD"
for this purpose.
developed by
our
research staff specifically
of
public interest
in
conservation—dammed up during
surgence
the war."
Mr. Merck cited the remarks of
Rfl YOniGR
Charles S. Munson in the latter's
MCA presidential
years ago
for
a
address of two
INCOP
concerning the urgency
concerted
effort
from
the
strikes
industry in the direction of public
exam-
relations.
PO
RAT
ED
EXECUTIVE OFFICES: 122 East 42nd Street, New York 17, New York • MILLS: Hoqviam, fort
Angeles, Shelton, Washington;
Fernondina, Florida
-
upon
too
needed and that
additives
nutrition
the
"In the
first thing that strikes me
cur
non-
as
educational
an
were
chemical
these
be
wasted unless the public
largely
if
be
tion.
the need for dealing
with every problem in the frank¬
est way to earn the public's long-
ments
to
program had not laid the founda¬
tion and proved to the public that
Stressing
range
universal
and
re¬
in
chemicals
often
our
man
of the
Mr.
Munson
is
Chair¬
Board of Directors of
PRODUCER
OF
HIGHLY
PURIFIED
WOOD
CELLULOSE
for
TEXTILES
•
TIRE
CORD
•
CELLOPHANE
•
PLASTICS
'
i'4
.14
The Commercial and Financial Chronicle
(2674)
Continued from
Public
Utility Securities
first
your opinion is as good as mine,
Some
further
light
may
be
One but mine is that the long rise in thrown upon these price-earnings
the
of them, of course, was the un¬
prices of high-graae stocks
comparisons by similar compari¬
lower-grade
stocks
have sons of dividend
seasonably warm winter of 1948- while
yields.
In the
49. This was a factor of consider¬ lagged does not signify that the
five
prewar
years
the average
able statistical importance.
Nor¬ investor has become more cour¬ Dow-Jones yield was about <4.35%,
southern "growth"
annual revenues of about $6 million; it came
out of Engineers Public Service in July, 1947.
The stock sells
over-the-counter around 36, the range last year being 25-34 and
mally, 40-45% of the market for ageous.
while that of the oils was just
On balance, however, it seems
light fuel oil is located in the Mid¬
under 4%.
The Dow-Jones aver¬
dle
Atlantic
and
New
England to me that most of the things we
age sold at a higher price-earnings
states and around 60% of the de- feared should give us less worry
rate, but at a lower price-dividend
The dividend rate is $2 (versus $1.80 in 1949
and $1.60 in
1948), making the yield 5.5%. The payout, only
about 60%, is conservative.
Revenues have about doubled since
1939.
Net earnings per share have increased rather steadily from
72 cents in 1937 to $3.32 for the 12 months ended April 30, 1950
this year 34-37V2.
in
$6
previous 12 months'
is outstanding in that it has financed its con¬
(with an increase in gross plant of about 60%
hand
1945, surplus earnings, depreciation funds, etc., has
care of construction costs.
The company refunded
in
sufficed to take
$1 million 3V4S were sold in
refunded last
Short-term bank
1948.
'V
X
-
The company
supplies electricity at retail in El Paso, 18 other
communities in Texas and 22 in New Mexico along a 230-mile
stretch of the Rio Grande River valley, the area having a popu¬
lation of about 237.000, of which 200,000 are in the metropolitan
of El
area
The latter population has increased
Paso.
El
about 50%
through the Rockies anywhere in
famous Spanish explorers passed this
many
in the early daysIt is also the only all-year snow-free
thoroughfare between ocean and ocean—east and west. This ac¬
for its importance as a transportation center—rail, truck
way
It is the
geographic buying center of
600-mile trading
a
area.
The primary sources of income over this huge trade territory,
according to the annual report, are the four Cs: Cotton, Cattle,
Copper and Climate. In addition, there is the import and export
trade with Mexico; the six rail lines into or through El Paso;
the largest military reservation in the United States, with an
annual payroll in excess of $48 million; a large oil and gas industry;
and various
establishments in El Paso.
Cotton raised
in
this
All
tant
in the east.
over
Over 29% of all U. S. copper is refined at the
Phelps-
one of the most modern and largest
This refinery purchases its entire electrical require¬
El Paso Electric obtains natural gas for boiler fuel from El Paso
Natural Gas Co.
The company's revenues are 34%
residential
residential rate
average
below the U. S. average, and
was above average.
In
lack
of 2.7 cents per kwh in 1949 was
residential consumption of 1,845 kwh
take
City
the
of
El
rate base.
$22
in
with
compared
earnings
are
are
no
President
REA's in
was
the
$17
million
through
to
60%
an
rebate
the
and
a
to
all
share.
government
competition
recently estimated
that
earnings for the
1950 might approximate $3.48, which
presumably
There is
indication that the present conservative
$2 dividend rate will
be raised in the
future, since construction needs
near
There will probably be no equity
proportion
paid
their
of
than
dividends
is
smaller
course,
out
a
in
earnings
did
the
average
industrial company.
trials
again
higher
commanded
price-earnings rates, though lower
price-dividend rates.
At recent
prices, and on estimated 1950 div¬
idends, I figure that the DowJones average yields about 5%%
and the oils
5.6%.
Over-Valuation
No
Oil
of
Stocks
the
production
discovery
of
that
fol¬
the
East
the
of
but
stock market,
optimism made
a
general
investors
serious view of these
a more
than
otherwise
the
must
on
the
1939 than
a
whole
in
as
1938.
were
The
look
we
somewhat
was
oil
whole
lower
period as
back
subnormal
industry in
in
on
the
for
comparison
it,
With
other businesses.
of over-valuation of the oils
occurred in comparison
the general market.
gree
has
yet
with
In
have
mind I
my
over
gone
should
that
factors
the
be
ap¬
praised in the analysis of an in¬
dustrial
equity
and
have
at¬
tempted
oil
to
how the typical
represented by
see
stock
common
this
average compares with the
typical industrial equity of rela¬
tively high quality reflected by
the Dow-Jones average. It seems
to
me
that
equity is
One
on
in
inferior position.
is
these
of
two counts the oil
an
the
relationship
foreign developments. I think
that there is much more basis for
to
optimism
to the absorption of
as
foreign-owned
ther^could
but it still is necessary to
concede
growth of foreign oil in
that
the
the
world
what
than
production
have been a year ago,
markets
of
more
American
a
industry
some¬
poses
problem
than
to
it
the
does
,
no
-
makes allowance for any necessary refunds to customers.
no
on
net# plant account.
annual
equal to about 15 cents
area
'
Womack
year
the
adjusted
distribution.
calendar
limited
It is understood that the rate base is
currently around
customers, which for 1949
There
are
potential
lowed
fuel
psychology
special franchise arrangement with the
a
whereby darnings
of
answer,
oils
the
that
always be
capacity is still negligible.
has
Paso
million
Excess
reserve
The
rate.
an opportunity. The second factor
In 1937, it is fair to say that the
of the market
of
comparative weakness stems
considered in evaluat¬ earnings of the oil industry and of out of. the influence of the gov¬
ing economic and business devel¬ industry as a whole were at pros¬ ernment
here.
Now
that
the
opments.
perity levels, as judged by prewar
spectre of oil shortage has faded,
standards. In that year the Dowat least temporarily, the size of
Reasons for Optimism >.■
Jones average sold, at 14times
oil companies, the level of their
y.; It seems to me that there are earnings, and the oils at about 10
earnings, the special tax protec¬
sound
reasons
for
being much times earnings.
tion the producing industry has,
more
optimistic than we were a
For the postwar period I have all are looked
upon with a jaun¬
year ago on several of these fac¬ taken the
years 1946 to 1950, in¬ diced eye in political, circles. The
tors, and that they will be sup¬
clusive, using recent prices as the latest attempt to reduce the de¬
porting factors even if on other 1950 estimate, and, of course, es¬
pletion
credit
may
have
been
fronts
the
wind
again changes timated earnings and dividends
beaten
down, but the
revenue
quickly. There is impressive evi¬ for the year. For this period the
needs
alone of
the
government
dence
that
working agreements Dow-Jones average has sold at an
will cause the fight to go on. As
are being made that will preserve
average price of 8% times earn¬ a
result
of
this tax
protection,
order in world markets for oil and
ings, while the 10 oils have sold corporate earnings of integrated
which
will
stimulate the world at about 6% times earnings. The
oil companies are being taxed at
demand for oil. We have had evi¬
period is one of marked differ¬ an effective rate of
only about
dence of the ability of the regu¬
ences in the earnings pattern.
For
25%, while the stipulated rate of
latory authorities in this country industry in general a peak in
course is 38%.
It is hardly .possi¬
to hold back production in order
earnings was reached in 1948, and ble that this tax
protection will in¬
to protect the price. It was hardly
for an average of the larger com¬
crease; the danger is that it will
possible ; to count on this ability
panies at least, the recession from
in 1949 produced about 91% of its power needs.
have a capacity of 78,800 kw, of which 20,000 kw
were installed
in May, 1949. Some power is purchased from the
government's Elephant Butte development on the Rio Grande.
The company's major problem last year was to provide some
relief for heavily overloaded
generation, transmission and dis¬
tribution equipment throughout the system and at the same time
keep pace with continued expansion throughout the area served
by the company. While the critical overload situation was relieved
company
an
production. in
our
would have been the case, and
,
The
to
drop of about 60% in
a
developments
;
The company
Two steam plants
last year,
was
with coal.
rural, 32% commercial, 19% industrial and 15% miscellaneous.
The
In the five prewar years, 19351939, the Dow-Jones average sold
refinery price of resi¬ Texas oil field in 1930. Crude oil
oil, the industrial fuel, prices were slow in joining the
as a result of the general business upswing
in
commodity
prices.
recession
which
characterized They broke again in 1938, and did
recover
in
1939.
Product
1949, and as a result of the ex¬ not
tremely high price to which this prices
showed
strength
in
the
fuel had climbed in comparison early part of the 1935-39 period,
dual
ments from the company.
and
The
reasons.
the average
Dodge Refinery in El Paso,
in the world.
-
other
were
additions
There
42% of all copper in the United
States.
From mine to mill, to smelter to refinery, much of this
copper passes through El Paso on its way to markets and factories
produce
the
to
average of slightly under 17
high prices to which oil had shot,
after the elimination of price con¬ times its earnings,
while the 10
trols, had given commercial im¬ oils sold at 14 times earnings. This
portance to much oil in the ground period, frequently taken as a sort
that
theretofore
had
not
been of prewar norm, may not as con¬
counted in conservative estimates fidently be assumed to be a fair
of reserves.
It had stimulated period of comparison for the oil
much drilling, to depths thereto¬ industry. The entire decade of the
fore considered uneconomic, and '30s for the oils was one of labor¬
this drilling was finding impor¬ ing to absorb the great increase
El Paso is strategically located in the midst of the most
heavily mineralized section of the United States, offering prac¬
tically every mineral of commercial importance.
Mines in this
area
as
subject we should
despair of being able to see
at
,
southwest
be
oil
There
commands
area
to
possible to anticipate and
to analyze them. With proper at¬
1948 tention
world markets.
manufacturing industries consisting of 150 individual
premium prices and yields per acre are exceptionally high.
farming is done entirely by irrigation.
is
rapid development of the Middle such as the 30-company total com¬ company valuation to that of the
Eastern oil fields and the question piled by the Petroleum Economics general
industrial
company
of
of how this greatly increased flow Department of the Chase National similar standing. It seems to me,
of
oil
was
to
be
absorbed
in Bank.
therefore, that no dangerous de¬
counts
and air.
will
concern
hopes of recovery of computations of earnings and divi¬
I think that it is unwise to press
markets even with a dends as well as of price. The 10
return to normal temperatures in oil companies represent about half these comparisons too closely, be¬
of
the
of the industry in this country and cause
future years.
imperfections
of
Anotner
important reason for I have found that trends in this averages, but what they say to me
the concern felt for the future of group are very similar to those is that no drastic change has oc¬
oil
prices was-the evidence of computed for larger aggregates, curred in the relationship of oil
fuel
the
is the lowest pass
Paso
America, and
do
can
discouraged
since 1940.
North
we
light fuel oil had been built up der to simplify the presentation I
their seasonal peaks, it was have chosen the Dow-Jones Indus¬
enough to create painful surpluses trial Average and a per-share
on
the Atlantic seaboard and the average of 10 large oil company
Gulf Coast. At the same time, the stocks. Neither average is perfect
prospect of miles of natural gas but they will serve to paint the
pipelines spreading tentacles into picture in broad strokes. They
Eastern and New England markets have the advantage of permitting
loans were
>
October,
All
as
to
September, when $2.5 million debenture 3V8S were
issued.
alert
of
$6 million 23As in 1946, and an additional
its mortgage bonds with
months
six
Other bases for
now.
March. arise.
through March, 1949 were 11% not
Again in the postwar period,
higher than in the corresponding them in time.
It is appropriate at this point, I 1946-1950, the same general rela¬
period a year earlier. This prob¬
tionship is found. The Dow-Jones
ably accounted for a drop ot 15% think, to examine the position of
on
cash
dividends,
was
in the period in the demand for the oil equity market in relation yield,
heating oil.
Coming after stocks to the market as a whole. In or¬ 5.4%, the oils 5.2%. The indus¬
extra cash
which together with $2.5
$9.5 million,
million to
on
the
in
Using New York City as an ex¬
ample, prevailing temperatures in
four-year period ending Dec. 31, 1949) without any pre¬
or
common
stock financing.
Fixed debt increased from
the
ferred
concentrated
months of October through
the
company
is
mand
period).
The
times
at a little over seven
probable 1950 earnings.
ing
discussing their validity.
in
with
struction program
I figure
as
value in recalling them and
some
(the latter figure comparing with $3.09 in the
time,
it, the Dow-Jones average is sell¬
ing at about nine times likely 1950
earnings, and the 10 oils are sell¬
Outlook for Oil Equities
El Paso Electric Co.
El Paso Electric is one of the smaller of the
Thursday, June 29,1950
At the present
page
By OWEN ELY
companies,
...
are
before
it
was
demonstrated.
that
pos¬
the oil
sible for the Texas Railroad Com¬
financing during 1950-52.
mission
the
to
hold
the
for
oil
demand
line
had
not
forged ahead
reduced.
be
Per¬
haps it would not have been
heavy.
in
peak has been moderate. In
industry a very high peak
earnings
was
reached in
1948,
and the decline from that peak
been of the order of 30%.
has
In 1948.
Except
seems
up
to
on
me
^
.
these two
that
the
points,
oils
it
stack
quite well in comparison. The
is quite stable in the
industry
and product prices recovered some
Portland Inv. Bond
Club to Hold
summer
outing
Investment
held
at
Hood
drive
the
Portland
Club
Bond
Mt.
40-minute
on
of
will
be
Golf
Club
(a
from
Portland)
Friday, July 21.
TORONTO,
K.
Ont.,
Can.—Robert
McConnell
Smith
and
Chester
H.
have formed McConnell &
Company
Limited
to
conduct
a
general investment and brokerage
business from offices at 11 Jordan
Street.
their
of
Formed in Toronto
Outing
PORTLAND, Ore.—The annual
the
Dow-Jones
average
sold at year-to-year volume of its busi¬
The business certainly is
The effect about seven times earnings, the ness.
competition is be¬ oils at about 4.85 times earnings. basic. The industry is in strong
coming measurable and is seen to It is not my purpose here to dis¬ financial condition; in fact a large
slow up, but not to eliminate, the
integrated oil company can pre¬
cuss the decline in general pricegrowth of fuel oil use.
earnings rates from
prewar
to serve its solvency through a se¬
Others of the questions which postwar. I wish merely to call at¬ vere depression better than almost
bothered us last year can more tention to the fact that the ten¬ any other type of industrial com¬
of
McConnell & Co. Is
natural
previous fall.
gas
"&The weather re¬ dency of high-grade industrial pany. Cash earnings are perhaps
unpredictable influence. stocks to sell at higher price-earn¬ twice as large as reported earn¬
As to the psychology of the mar¬ ings
rate£ than high-grade oil ings. The use of funds set aside
ket, that attitude that can magnify stocks persisted in the postwar for reserves and write-offs to pay
or minimize the news of the day,
bills and taxes and interest will
period.
easily
mains
return.
an
Volume 171
in the
long
base of
Number 4920
The Commercial and Financial Chronicle
...
erode the earnings
run
oil company, but it can,
an
and
ket of
50,000 barrels
this
that
will
per
equal
day, but
about
one-
has, carried many a company
through an extended period of low
third of the normal growth which
business and
pected in that market by the end
factors
of
low
the
prices. In these
basic
its
of
nature
business, its stability and finan¬
cial strength, I rate the oil indus¬
try at least equal to the rest of
industry, taken as a whole]
In the steady, if unspectacular
growth of aggregate demand, for
the
products
of'the
oil
industry,
there is, it seems to
me, a factor
advantage the investor in an
oil company has over his counter¬
part in the average of other in¬
of
dustries. In the all-important mat¬
of
management, I give the
ter
oils
an
especially high rating. The
ablest of executives
to this
attracted
are
industry, and oil companies
continue
to
the best of
neering
draw
school
speech
made
of
In
month
a
before
American
Dr.
share
graduates.
last
the
full
a
business and engi¬
our
Gustav
Chemical Society,
Egloff, the eminent
petroleum chemist, estimated that
at the present time research ex¬
penditures in the petroleum in¬
dustry comprise about 25% of all
the money spent by
industry for
research. I think that in the need
for
outside
financing, with its
danger of dilution of equity, the
oil industry is in a favorable posi¬
tion
with
respect
to
industry in
otherwise
of
oils
will
add
their
to
cash
tions this year.
There
is
another
posi¬
point of superiority under present
conditions, and that is in the rela¬
tively low labor costs.
For the
industry
as
whole
a
labor
20%
cost
does
not
exceed
probably
about
the
of
enues.
On
to
the
operating
:
•
that the oil
rev¬
f
balance, therefore, it
me
of
seems
industry has
a
superior appeal to the investor on
more points than those on which
it is at
disadvantage. I might
a
also
that
for
oil
the
short-term
earnings
company
dividends
is
at
least
for
industry as a
quently since the
say
outlook
and
as
good as
whole. Conse¬
oils have not
departed from their historiacl re¬
lationship
to
industrial
stocks
generally, I think that at present
prices they are somewhat more
desirable
purchases than general
equivalent in¬
industrial stocks of
vestment standing.
Outlook for Branches
Oil
of
Indus'.ry
It
is
space
impossible,
within
the
of this paper, to go into de¬
tail
on
the
various
the
economic
outlook for
branches
of
the
oil
industry.
However, I should like
discuss briefly three of the
to
questions
arise.
which
most
frequently
One of these concerns
petition from natural
control
of
gas,
com¬
another
domestic
and the other the
production,
place of foreign
oil.
Displacement of heating oil by
natural
gas
will
be
confined
been
ex¬
It would
slow up the
growth, not eliminate it.
the
West
England States; in the midthe threat is more to coal.
The
market
been
one
of
for
burner
the
most
growing markets, and is
able
oil
has
version
eventually will be reached. creasingly valuable asset to many
\
They force the American com¬ oil companies.
able, or permitted to be sold to panies to buy more in the sterConclusion
other
countries
against sterling ling area rather than in the United
In
payment, if offsetting increases States.. They may force them to;
conclusion, it seems to me
were made in U. S.-company ster¬
become larger holders of sterling, that for a respectable interval at
ling expenditures. ;
and they will force them to pay least the principal worries in the
;
•
natural
esti¬
market for
gas
was
r
was
.
-
the
to
condition
A
petroleum
unless
of short
supply of
remote
appears
now,
It
foreign fields
mind
us
at the
in
were
of this
we
Even if the
not there to
the
7,000
permit
b/d
American
the
of gasoline to
Last year
could still look
discoveries being made
Permian
Basin
in
West
will
agree¬
companies to supply an additional
re¬
new
it stems from
is estimated that this
greatly increased military ment
demand intervenes, or the foreign
blocked off.
that
an
it
exclusive
Britain.
was announced
deal
has
been
that
con¬
it
is
investor
advisers,
cluded between Great Britain and
It
would
course,
to
difficulties
not
assume
be
The
being dis¬
covered in Scurry. Kent and Bor¬
reserves
pressure
of production held back.
The Foreign Oil Situation
I
should
like
now
lo
get
on
to
the foreign situation for I believe
to follow.
A good deal of progress
impossible for me to leave
subject without a more point¬
conclusion
than
this.
To
of the outstanding aspect of the stock
that all of the market we have had for the past
between
British, and
American oil producers competing
for world markets stem from dol¬
lar shortage?.
The close relation¬
ship between the British Govern¬
ment and the British companies is
itself a source of difficulty. This,
however, is no new problem. The
American companies have lived
under this
difficulty for many
years. Without minimizing it, the
evidence suggests that they will
be able to compete in future
years.
has
year
been
institutional
its
character. There are signs of more
public
boom
participation,
and
of
a
psychology in business and
situation must be watched on
the
day-to-day basis, but I cannot
believe they have as yet gone to
a
Excess. I am one of, those who
expects' some downturn in busi¬
ness
before the year is out, and I
do not believe the oils will be im¬
pervious to it.
Speaking entirely
personally, I am a tired bull. But
I am impressed by the way these
institutional
investors
go
after
stocks on any recession. If fuel oil
prices drop, if the crude price
structure again comes under pres¬
sure, if our general business level
declines and the world again finds
its dollar deficit rising, I do not
think we will go back to an atti¬
of deep pessimism on oil
equities. The ceiling I think is a
rising one, and we are not so very
tude
far above the floor.
Two With Hamilton
Management
v
(Special to The Financial Chronicle)
DENVER,
Bird
and
Colo.
—
Anthony
Everett' L.
Tyrone
agreement
has
been
ton
ton
Management Corporation, Bos¬
Building.
,
reached
between the British and StandardVaccum
PANHANDLE
Oil
Company. StandardVacuum is a joint subsidiary of
Standard Oil (New' Jersey) and
EASTERN PIPE
LINE
Socony-Vacuum, and produces and
markets in Asia and Oceania.
It is
COMPANY
lars of 40% of its sales in the ster¬
assume
evident
have displaced a
heating oil
mar¬
shipments.
It
was
also proposed
timate
hopes that
a
general agree¬
Production, transmission and sale of Natural Gas to
distribution companies
have
been added to the staff of Hamil¬
It has become known also that
an
me,
realistic,
.
considerably during the balance of
this year and therefore reduce the
the
ed
and
Argentina,
involving
the
ex¬
change of oil for meat and other
den counties are a minimum of goods, which cut out the American
market in that country, estimated
one billion barrels and may pos¬
at the equivalent Of 15,000-20,000
sibly run to as high as five billion
barrels per day. However, a modi¬
barrels, or about as much as the fication of the
agreement was an¬
original
reserves
in
the
East
nounced last month and this re¬
Texas field.
These fields, how¬
It is not necessary to think only
opens
the Argentine market to
ever, are being developed far dif¬
of the meeting of problems in an¬
American oil.
ferently than was the East Texas
On June 8, a new agreement alyzing the present position of the
field, which in fact fastened on
oil industry. The positive factors
was announced between the Brit¬
us
the system of
prorationing.
in the situation are numerous and
ish Government and Standard Oil
Present
controlled
production
(New Jersey) and Socony-Vac- important. I have mentioned some
from
the
Scurry
Canyon
reef
of them, such as the strong man¬
uum.
These
companies
jointly
fields amounts to perhaps 60,000
own
23.75% of Iraq Petroleum agement, research and financial
barrels per day, and from the rate
setups. These are factors playing
of drilling and indicated programs Company, one of the Middle East
producers, with the bulk of the upon a versatile chemical, easily
should amount to well over 100,balance of the stock being owned handled, and finding new applica¬
000 barrels a day a year from
tions every year in this vast and
by the British and French. The
now.
This compares with a total
agreement covers the American growing and shifting country. The
United
States production
of 5,companies' share of Iraq Petro¬ growing use of diesel oil, and the
400,000 barrels per day. But the
leum
production,
and
permits
(developing petro-chemical indus¬
potential production from these
them to sell it either inside or out¬
new fields, of course, is very much
side the sterling area. The Ameri¬ try, which in value terms will be
higher, and eventually it will be
can companies will pay in sterling important to the oil industry, are
felt. That this, and other new pro¬
for oil sold in the sterling area, examples of the
expanding hori¬
duction, and the pressure of per¬
and will pay 75% sterling—25%
zons for petroleum. Natural gas, a
haps 700,000 barrels per day of
dollars for oil sold outside the
threat to markets in some quar¬
production shut in will one day
sterling area. They will be able
bring about lower prices for crude therefore to sell for
sterling in ters, is at the same time an in¬
relative to other commodity prices
countries outside the sterling area,
is entirely probable.
This, how¬ and use part of that sterling for
ever, does not appear to be an
their purchases of the required oil
early prospect. The chances are from
Iraq Petroleum.
that allowed production will rise
Texas.
has been made this year in set¬ ling area.
large proportion, but tling portions of the differences
World
consumption of petro¬
already that there between the British Government
leum, excluding the North Ameri¬
is a strong preference for gas in and American oil
companies con¬ can
continent, is probable slightly
new homes.
It is largely concen¬ cerning the supplying of so-called
over 3,000,000 b/d.
United King¬
trated in the East. When natural "sterling" versus "dollar" oil in
dom
consumption
should be
gas reaches the projected delivery
world markets.
At the beginning
around 350,000 b/d, and the entire
total of 1,500 million cubic feet of the
year, it became known that sterling area usage about 850,000
per day in the eastern markets the British were endeavoring to
b/d.
American companies have
by the end of 1952 some of the restrict severely the importation been
supplying about half
of
growth in the fuel oil demand of U. S. company oil into sterling
foreign demand, including about
will be taken away, but it is hard¬ area countries. This brought vig¬
250,000 b/d to the sterling area.
ly likely that all of that growth orous reaction, and in February Most of the market outside the
will disappear.
The subject has the British submitted a composite
sterling area is short of dollars but
been freshly studied by the Eco¬ proposal. Under this proposal the
can
pay in sterling.
The British
nomics Department of Standard substitution of sterling for dollar have resisted
having their sterling
Oil Co/mpany (New Jersey) and oil would have been limited to the debts
transferred into dollar debts.
the results of that study recently equivalent of 80,000 barrels per The
arrangements
which
have
were published.
It was estimated day, representing about a
30%; been announced are piece-meal
that by 1953, natural gas would contraction in
American-company arrangements, but they raise legi¬
will
investors
realize it.
a
are
extent
oil.
rapidly this is of great importance in the believed that the agreement will
outlook and one that is difficult
guarantee convertibility into dol¬
a profit¬
It is not likely that con¬
from oil to gas burners
one.
ment
ican-owned oil would be import¬
study the effect of
same
of
use
largely to the Middle Atlantic and
New
that additional amounts of Amer¬
While this compromise proposal heavier taxes to Britain. However, minds of investors in oil securities
not wholly acceptable to the this much blending of economies are not likely to recur. The out¬
mated to absorb a
American companies it laid the is inevitable to international in¬ look in fact appears to be quite
75,000 barrels per day of heavy groundwork for further confer¬ dustries. The agreements do have favorable, and oil stocks still ap¬
fuel oil, and it was conceded that ences, which it is expected will the ; effect 1 of
increasing
world pear to be reasonably priced in
this might be an absolute
loss. be resumed this month in Wash¬ consumption of petroleum, which terms of earnings, dividends and
is by all odds the most important the more important standards of
This may prove to be the case, but ington.
factor in the situation. In the an¬ analysis.
\Sit is worth jipting that the com¬
In May the British Government
nual report for 1949 of Standard
I
would
venture
to
petitive position of residual fuel announced
say
that
acceptance of a pro¬
Oil Company
oil relative to coal has much im¬
(New Jersey) the should the general stock market
posal made by Standard Oil (New
estimate was made that foreign remain at approximately its pres¬
proved since 1948. On an equiv¬
Jersey) under which that com¬
alent heat value basis the New
consumption of petroleum in that ent level, or should it decline, it
pany
would - supply
additional
year increased
York Harbor price for heavy fuel
by 12%,
In this would be found that the better oil
quantities of gasoline in Britain
oil today is about equal to the
country the increase, if any, was equities did better than the aver¬
against ^payment in sterling, the of the order of
1% or 2%. In the age.
price of bituminous coal.
Nor¬ additional
In
the
event
of further
sterling to be used for
report of Firestone Tire & Rubber strength in the general market,
mally it commands a premium
purchase of British tankers and
'Company, it was stated that for¬ which, I suppose, after the long
over
coal, and it is a premium other
equipment and supplies in eign
registrations of motqr ve¬ rise we already have had, would
fuel in terms of ease of handling
Britain. The California-Texas Oil
hicles,, has risen to 30% of the be most noticeable in cyclical,
and
steadiness of supply.
It is
Co., jointly owned by Standard world total. We are still
provin¬ more speculative stocks, it might
very possible that the premium
Oil of California and Texas Co.,
cial. We talk glibly of population well be that the oils would revert
will not be reflected in
prices
agreed to a similar proposal, On growth in this
country; our Wash¬ to their prewar pattern and prove
again.
Nevertheless, the heavy the
strength of these agreements, ington dispatches fill up much less
fuel oil business has gone through
dynamic than the average.
the Government ended gasoline
space on a Point IV program for Your opinion of the general mar¬
a
readjustment since 1948 that,
rationing. The agreement extends 'which 12 to 50 million dollars can ket is the most
important to you.
subject to
industrial conditions until
the completion of the large be squeezed out. But the oil in¬
Unless, however, you are commit¬
generally, should represent the
expansion of "Jersey's" refinery dustry, and our international in¬ ted in
jmur mind to a continuation
bulk of the readjustment that it
in
England, expected in early dustries
generally are actually of the upswing, I should think you
will have to make, including the
1952, which will make a major capitalizing on these world devel¬ should rate the oils high in rela¬
accommodation to
an
increased
contribution to the easing of the opments of
growth and industrial¬ tive prospects. f;!?,•;(
■A
».
supply of natural gas in this mar¬ dollar
shortage in Great Britain ization, and, as yet, few of us, as
It is
ket.
In
the
fields
important
have
1952.
rate of
general.
It has always been more
self-contained than. industry
in
general.
It looks now as if the
would
15
(2675)
gas
and to industries in Kansas,
Missouri, Illinois, Indiana, Ohio, Michigan and Canada.
.
36
(2676)
The Commercial and Financial Chronicle
...
Thursday, June 29,1950
•/
that
note
Market
Crack-Up Reflects
as
Too Much Regulation
•
Financial
.■
But
American"
Like the State and Defense De-
nearly 10*4 points, or about 4.7%
partments, the stock market was
caught off guard by the Commun-
of total market values. That is a
big drop for one session and just
ist invasion of South Korea.
about equalled that of September,
The
stock
market's
be
1946.
in-
telligence
Some individual
may
to
ten
it
days
had
$01 million.
a
0f
shakeout.That
was
more
of
test
than
any
as
1,256,
Gould
It
■■■•/:
and
for
go
which
has
substantial
three
selling
number
of
have
stocks
the motion pic-
as
tures, the tobaccos, the golds, rail
equipments,
It
lines
chain
and
would
of
course
The
that
seemed
news
break
a
determine
the
is
broke
another illustration of the dangers
in this over-regulated trading. In
a
five-hour
—nr~
•
*
.
session,
«
,
prices
.
.
lost
f
New^Tfork Journal
US.
1950.
or
up
in
the
so-called
fast
runup
Motors
it
when
This
had
was
such
a
announced
ing
27.
'
and
owners
whether
to
increase
in
will
The specialists on the Exchange
to
courage
close
make
markets,
So, the market of today is subject
to wider and more violent swings
th™ * «•"» terrible old days ol
regulation.
no
with
than
more
1952!
Such
the
space
amount
the
est
are
newest
rentals
better per
and
foot.
square
the fines of
Tenants
the
And obviously, for the
reason, tenants will stay in
newest
and if
buildings
Therefore, it is
ticularly for older
trend.
structures. Cites
renting rates
says
And
you
up
do something!
can
I
have
shows
what
York
in
Urges old building
in
may
represent
form the problems
office
1925—how
and
we
only
office
not
space
an oversupply of
is rising again. It is
yet
generally apparent.
But
the first signs of its manifestation
unmistak-
are
able.
Great
new
consolidate
on
one
the
of
a
the
cities,
fling
serious
chal-
lenges
to
office
build-
all
for
almost
20
years.
Thompson Smith
to
take.
these
modern
rates
structures
that
entail
carry
rental
that cannot be applied
structures.
•An address
They
great
rental
policies
to
existing
planned to
of
the
at
the 43id
the
Seattle, Wash., June
13,
1950.
with
we
new
scheduled
is
years
when
called
to
the
the
were
all
va¬
roaring
business
was
building that has
earmarks
of
being bolder
They jumped in 1928, fell
again in 1929, and then started
their tragic limb.
By 1933 office
notorious
vacancies in New York amounted
to more space than had been built
in the boom years of
1925, 1926,
lustier
In
than
the
Ney York, for example
Netfr* York
and
affords
example when it
placed
space
was
1920's.
And
that
it
more new
built in several
giddiest boom
rentals
office
to
the market since
on
than
war
of the
—
glaring
a
comes
is
none
of the
years
being filled
of
our
at
existing
This new space exceeds the total produced in both 1925 and 1926
put together.
than
combined.
of
1927
It
and
and
to
in
even
1926
and
more
tops the output
alone, with
square
feet,
a
is
total of
edging
the peak records of
1931, which rolled
5,585,000,
1929
5,325,000
respectively.
To
up
and
1928
combined
and
—
they continued to increase!
In
short, in
there
were
Manhattan
the
13
26
past
in
years
office
years
vacancies
aver¬
was
an
exceedingly
costly condition!
I have another chart that shows
the cost of vacancies.
is based
on
National
at
our
national
This
conventions
and
is
indeed
a
group.
Everett, you should top your
of Philly called
in this past week challenging
the increase in advertis¬
trading
Let's see.
our
Blizzard
Herb
of the Bond Club of Syracuse and a
Advertising Committee. He represents
President
our
affiliate
ing that he expects the Investment Traders Association of Phila¬
delphia to produce. In fact he is willing to post a bond on it.
Who accepts this offering?
HAROLD
B.
SMITH, Chairman
NSTA
Advertising Committee
Pershing & Co.,
120
SECURITY
GEORGIA
Broadway, New York 5, N. Y.
DEALERS
ASSOCIATION
The
Georgia Security Dealers Association held its annual
outing June 10 and 11 at Savannah (Tybee Beach), Ga.
The Atlanta contingent, numbering about 40 members of the
Association, boarded the train in Atlanta at 6 p.m., Friday, and
arrived in Savannah at 11 p.m., where they were met by the
buses and taken
to the Tybee Beach Hotel.
Saturday morning's activities included fishing, golf, sunning
on the beach and a little swimming.
On Saturday evening there
was a cocktail party and the annual dinner.
Following the dinner,
prizes were awarded as follows:
Golf—Roby Robinson of Robinson-Humphrey Co., Atlanta,
first prize for low gross.
Freeman Jelks of Johnson, Lane,
Space & Co., Savannah, won second prize for low gross. King
won
Sinkins of Clement A Evans &
low net.
second
Bank,
won
Co., Savannah,
won
first prize for
Roger Jacobs of Hancock, Blackstock & Co., Atlanta, won
prize for low net.
Frank Taylor of the Fulton National
Atlanta, won the booby prize.
Fishing—Henry Wyatt of Wyatt, Neal & Waggoner, Atlanta,
first prize for the biggest fish.
Fleming Settle of J. H.
Hilsman & Co., Atlanta, won the booby
prize.
Byron Brooke of Byron Brooke Co., Atlanta, won top prize in
special event.
Following the dinner and the awarding of prizes, the members
engaged in the "usual outing activities."
a
Sunday morning most of the members adjourned to the beach
up a little sun and do a little swimming.
to soak
The
Savannah dealers
ciation at
a
luncheon
on
entertained the members of the Asso¬
Sunday at the Sam Varnedoe's.
Follow¬
ing the luncheon, the members commenced wending their weary
way
home.
Same Varnedoe was Chairman in charge of the
activities in
Savannah, and gave
a
most enjoyable and never-to-
be-forgotten outing.
The
'
annual
meeting will be held in December and officers
for the coming year will not be elected until this annual meeting.
SECURITY TRADERS
The
CLUB
OF
ST.
LOUIS
Security Traders Club of St. Louis will hold its annual
outing at Seibert's Grove, on Highway 61, Lemay Ferry
Ringer Roads, on Wednesday, July 12, from 3 p.m. to 3 a.m.
for the day are horse shoes, African golf, Softball, cork
ball, card games, etc. Refreshments will be served all afternoon
and evening and a delicious steak dinner will be served.
summer
more than 10% and 13 years
when they were below that level.
that
Y.,
of
great credit to
quota for 1950.
which
aged
No^,
N.
local
chart
only 330 choice office
and
Planned
Guest fee is $12.50. For hotel reservations contact Edward H.
Morfeld, Morfeld, Moss & Hartnett, 721 Olive Street, St. Louis 1,
'■
Missouri.
.,
buildings.
1927
anda928!
This year
close
It amounts to
built
we
1927,
cuse,
member
ex¬
vacancies agree¬
for
a
couple
of
so
receded
Pittsburgh's volume of advertising in our Convention issue of the
"Chronicle."
Harry, my regards.
Also meet Everett W. Snyder, E. W. Snyder and Co., Syra¬
for
bring the grand
70,000,000 square
over-expansion that began around
1925.
National Asso¬
Building Owners and Managers,
of
experience. But, of course,
cancy
those
ably
4.208,000
by Mr. Smith
Annual Convention
ciation of
are
But
with
feet
years.
office
in
buildings could command.
This is hard
Le«
floors
predepression buildIn fact, they make up a new
the
buildings
1925
feet.
panding, and
tations of
be-
will
sev-
buildings—we have had
"new"
already
which
'20s,
ings that have
enjoyed repuing
structures
that
and
ris-
in
square
now
total up close to
Attention
of their
building
existing buildings and
corporation
boom
tui es, now
many
ourselves
ings.
all
in
off
30,000,000
in
1951
It covers
office
Manhattan Island.
started
eral prewar,
modern struc-
ing
major
on
be scattered throughout
may
total of more
a
chart is
soace
par¬
buildings.
offices
by
feet in
piling it up
square
kept
have
find
large vacancies
to modernize structures and
thus cut down demand for
The spectre of
then
now
at
en¬
started
we
ciated
years.
have
accumulated
space
Securities Traders
Harry's marvelous personality which is so much appre¬
our conventions
should assist considerably in boosting
mittee.
New
countered in every city in the na¬
tion. It shows only the totals of
new
of the Pittsburgh
President
Pa.,
Snyder
Steele, Fauset, Steele & Co..
Association and local Chairman of the National Advertising Com¬
magnified
you
tate Board of New York.
Chicago and other
already show signs of downward
owners
in
26
past
It
introduce Harry J.
that
chart
a
happened
the
Pittsburgh,
we
W.
all afffiliates to exceed percentage-wise
However, before we go into
that, let's look at the record—to
problem,
This week
his
based entirely on
compiled by the man¬
agement division of the Real Es¬
of
case
as,
occur.
to you own¬
ers and managers of older build¬
ings to do something about this.'
We
Mr. Smith foresees future
when,
vacancies
more
about
cities, and
willing
are
E.
Harry J. Steele
of
skyscrapers, fin*
new
foot.
square
This
is again rising
construction, "bolder and lustier" than boom
s.
one
to pay these amounts because the
new
structures
obviously
have
Warning spectre of over-supply of office
new
In
ished this year, there are cases of
rentals
running
up
to
$7
per
Chairman, Executive Committee, Home Title Guaranty Co.
in late 1920
a
new¬
signing long leases
buildings in New
20-year leases at
averaging around $5 or
the
York —10-
centers
because of
such
of
Certainly not the
buildings!
'
Tenants
who
But
brunt
statistics
space
years
ex¬
than 37 million square feet of of¬
fice space added since 1925!
LEE THOMPSON SMITH*
this
office
new
situation?
1925
By
in
build¬
is
would
of
being built.
bear
until
President, The New York Real Estate Board, Inc.
for participation
Please become interested!
10% vacancies by
vacancies
now
would
since
Office Structures
quota standing
the rate registered
at
producing 1,475,000
Over-Building of
their
continue
understand the background of this
Floor, with exception of a handful, either are unable or lack the
of
past year. If they should
happen to do so, we could be faced
same
swing,
advised
advertising income.
the
The big traders are becoming
extinct, and corporation insiders—
another source of buying — only
play for capital gains, if at all.
market
Through the timely cooperation of our National Secretary,
Cayne, all Chairmen and Presidents of affiliates have been
Mort
managers
vacancies
something!
The
mutual
investment
trusts,
while major buyers, tend to reduce the floating supply and their
AD LIBBING
Buildings Adversely Affected
plans for the split-up.
<>
market
reduction
the
General
the
prices.
way
unusual
an
the down
on
managements have yet to prove
in 'their nimbleness in
catching1 a
•
has
the
air
mar-
A factor in this thinness—
why
making new lows almost
daily.
As pointed out in this
space, the bull market forgot a lot
stocks, such
new
extremely thin
an
floating supply of stock.
So,
been
stores.
is
never got anywhere.
While the bulls have seemed, up
a
of
Notes
the
The vital point to office
in
side.
was
to now, to have things more their
way,
number
het, and it cannot take
has
long overdue, but every
there was any selling, there
no public following through.
the
record—
a
time* ^side from the over-regulation—-
been
Old
128, is the largest for this
This is
would
correction
set
year.
go.
of
the
turnover either
A
right through
same
issues
of
and
lows,
!
been
about
slocks
way
The
list.
number
the
,
deflation
a
relevant
this new
for
occupancy
ceed
inci¬
Korean
General Motors' drop
represents
This fs the biggest one-day de¬
cline in nearly four years, and the
events
dent.
weeks,
the
f 1 ection of
—such
touch
miHi0n.
a
coming
$6.3714
average va¬
question is how long
continue to aver¬
age that high?
Incidentally, the vacancy rate,
although still negligible, has been
rising since May, 1946, when it
figured at only 16 one-hundredths
of 1%
for more than 60,000.000
square feet of office space in some
400 buildings.
market
jn market value of more than $280
break, though,
Leslie
their
of
9% 0f its market value, which on
its outstanding shares represents
Department,
for
ago
•
10%
values. Chrysler, off $7, lost nearly
State
the
r e
nearly
that
than
of
among
the leaders lost anywhere from 5
little bet-
a
ter
stocks
justification
a
will
York "Journal
an
construction.
By LESLIE GOULD*
Editor, New
had
we
percentage of only 1.2%, as
cancy
of last January 1, may be
Over
a
period of 22
years these
obliged to pay a
total of $80,000,000 in real estate
properties
taxes
was
on
were
vacant office
producing
More
than
no
$30,000,000
Continued
that
income!
space
rental
on
of
that
page
41
With Waddell & Reed
(Special
to
The Financial
Chronicle)
With Samuel Franklin
(Special to The Financial Chronicle)
BEVERLY HILLS, Calif.—Philip
R. Baus and Jay E. Currie are
ard M. Thorn has
with
of Samuel B. Franklin &
Waddell
&
Reed, Inc., 8943
Wilshire Boulevard.
LOS
ANGELES, Calif.
—
Leon¬
joined the staff
West Seventh Street.
Co., 215
Volume 171
Continued
Number 4920
from first
...
The Commercial and Financial Chronicle
(2677)
products
page
are
materials in
.
replacing
old
;
gineering
and chemical business
management have together cre¬
ated ah industry now possibly the
chief
generating force
in the
United States social and economic
pattern, indeed if not of the world.
Now
the
the
at
20th
firm
halfway mark of
the* chemical
century,
industries have secured
process
foothold
nomic
being
trial
the
as
a
eco¬
rigntfully
are
recognized"
leading
in all United States indus¬
group
Yet
effort.
group's
has
America's
on
and
scene,
recent
both
this
because
impressive
most
-
been
ferrous metals and wood in many
common
notions and household
Process Industries
growth
and
goods; • synthetic
plementing and
cotton,
fibers ,are
silk;
industries to change or to improve
the extent Of its contributions^ existing
New
outputs.
cultural
sections
of
foresee
over
nineteen
$25 million, more than
chemical
corporations
tions may- come;
were
*wh£t valuable contribu¬
well
beyond
that point
neering, put to work by
tensive,
progres¬
and
some
wood
management,
are
the
limitation
ture
Swift
:
In
Since World War I
Growth
1900
process
not
single
a
chemical
company, was included in
of
that
the
manufac¬
nitric
explosives
acid,, and hence of
and . other
nitrogen
compounds, depended
imports
Chile, the
on
of-sodium nitrate from
heavy-chemical side-was far bet¬
- twenty-five: largest manufac¬
ter developed than was the manu¬
turing corporations; based on re¬
facture of synthetic organic chem¬
ported assets; But in 1949 three
chemical firms and ten petroleum icals, for which, indeed, facilities
the
United
chemical States, notably in the Southwest,;
and
oil
Continued
producers dominated the
on
well-being, prosperity,
our nation—is even
and defense of
only partially appreciated by
Even the busi¬
and financial world was slow
now
the general public.
ness
in- recognizing its importance and
vitality.' >7, ■: .7%7.-&. /■«-.U;7i'»'
'
-Today the American chemical
process- industries group is with¬
out parallel ini the
worid-^-in con¬
to .modern
tributions
living,
in
earning capacity, in stability, in
influence,^ or in future prospects.
While it is true that the investing
.
public-has lagged in its realization
of the practical dynamic expanse *
of
chemistry,- there' are - already *
chemical' process;
several hundred
industries stocks listed on the ex-
chahge^
Afaded.:oVer-the-CDun-.
ter. ' A
$1,000
v
be
in
du
have
now
or a comparably
in Celanese would
$10,000,
grown to
farsighted
one
climbed
have
investment
1919 would
in
Pont
25 times its ini¬
to
tial value, not to
mention annual
averaging 6.3%
dividend payments
the
over
yCars. -The Federal Re¬
industrial
of
Index
Board
serve
production leaped from
chemicals
120 in11939 to 415 in. 1949 (1935-39
The index for the broad
100).
=
of chemical and allied prod¬
averaged
241,
more ^than
group
ucts
it
what
twice
in *1929/
was
The
index for all manufacturing
1949
industries
the
for
176
was
latest
year.
f
development: since
Chemicals'
the
'30s, leaves
late
doubt'
little
that the industry has become the
backbone of American industrial
Every'
progress.
analy¬
possible
provides ample testimony of
rapid rise to national leader¬
ship.
Its companies have grown
swiftly and securely. Sales have
surged upward at an unbelievable
pace. Since 1939 alone the increase
sis
its
bee
has
n', impressive
RELAY FOR TELEVISION—The Bell System uses
RADIO
calls and Television programs over
sometimes called microwaves, to transmit Telephone
waves,
the countryside. The towers
built about twenty-five miles apart.
are
enough:
643%; Mon¬
santo, 286% ;du Pont, 245%; Un¬
ion
across
Dow,
668%;
Pfizer,
frequencies of radio
chains of radio relay towers
The Bell
Carbide, 244%.
System's Television Network
The chemical process industries
be sure, is the best ex¬
that private enterprise is
Founded on the
group, to
ample
Grows: Each Year
hidebound.
not
of change, it takes the
materials of nature
principle
raw
common,
converts them
and
into
an
ever-
array. of useful arid
products which in turn
expanding
needed
?■
The Television
Bell
face of the
industry itself. Notable
in this respect has been the posi¬
tion insecticides and plastic chem¬
icals
attained
have
postwar years.
in
the
The total annual
lion pounds in 1949, now exceeds
that of any of
the nonferrous met¬
als, not excluding aluminum at
1.2 billion pounds in 1949.
Oh a
basis plastics outranks alu¬
$375
about $190 million.
minum,
To
about
enlarge
fluence,
many
million
to
carry programs
to
At the
tic
will
areas
with 38,000.000
By the end of this
year,
policy
bring that figure to about 57,000.000 —a
believed-in
policy
This
is
truly
continuing
because of such a
grams.
most
pio¬
\
r.
,
making network
of transmission —
types
The two systems
Thus both needs
practical
way.
System is
mission and
—have been
were
designed to
can
be supplied in the
,
a
pioneer in Television trans¬
through its continuing research and
building is marching right along with the growth
of this
the
now,--despite a recent de¬
crease in
selling prices and vol¬
And
we are
.
new
industry,
7
;
be-
right
ume.
today
both Long Distance calls and Television jf¥o-
The Bell
chemical producers
of'chemicals irom
~
gain of fifty per cent
their sphere of in¬
ventures.
so
possible. New
developed.
carry
popula¬
further expansion
over
earliest
and
beginning of 1949, the Bell System's
network covered
tion.
possible*
Vr'/
Coaxial Cable and Radio Relay
3 cents of every sales
dollar in research, a characteris¬
spend
to more
.7
Bell System facilities made network
as
Television
people. %
more
•
radio
five
output of plastics, close to 1.6 bil¬
value
facilities needed
:
Just
industry is growing fast and the
System is moving right ahead with the
continually change the productive
SECTION
It's
no
OF
COAXIAL
bigger than
a
CABLE
man's wrist. Yet 1800
Long Distance conversations or six Televi¬
sion programs can go
through it at
one
time.
distilla¬
transform- tion products and naval stores en¬
"ing the shape of American indus- joyed an export trade. Even with
sive
ahd of its overall influeriOe upon
the health,
by
from the exploi¬ 1949.
Before World War I, the Amer¬
chemistryi
But
the
chemical
alchemist's
speculations,
if ican
industry
was
a
they ever# existed, have in fact rather loose agglomeration.
The
come to pass. The basic principles
manufacture of products such as
of- chemistry and Chemical engi¬ acids and alkalies was already ex¬
tation of nuclear
nylon
the
sales
few who-nowican
are
sup¬
threatens to eliminate inner tubes
swift,
there
with
•
competing
wool J and
And
spirit, long felt, 40% of in
pneumatic tires and .is even
the sales of major companies last
finding.;'its way iiito typewriter
year was accounted for by prod¬
ribbons. The list is endless, the
ucts undeveloped in; 1935.
Al¬
effect
immeasurable.
American
though to date only one chemical
industry can no longer ignore the
company
(du Pont) has entered
influence of chemistry, for every
the billion-dollar sales league, the
industry group is now a customer
significant aspect is that 60% of
for chemicals.
"r v77;7:v7;/7;;
that company's current sales is in
The dynamics of the enterpris¬
products unknown, or at best in
their
commercial" infancy, ; two ing, free economy of the chemical
decades ago.
.
' :
■ %
' process industries are, thus,
changing
everything—and ..fast.
Such new chemicals eventually
They have improved^ the imple¬
provide the impulses forcing other ments
of every-day living.. Agri¬
neering
[Chem. Eng. News, 27, 3732
(1949)].
Whereas in* 1939 only
eight chemical companies had net
every'manufacturing day
line. Plastics. have displaced non-
Advance of Chemical;
list
being industrialized.
Every
the progress in synthesis is
■making this country more seif'sufficient in vital raw materials. /
are
raw
17
BELL
TELEPHONE
SYSTEM
i
.
page
18
r-v-
y
i:
Continued from
page
r.'jji".jr <-* V
:;
*
1
The Commercu&atul Financial-Chronicle;; Thursday, June 29,1950*
*
»
-
for operating new factories, some->
(6) Fertilizers.
**•; ieson -and ; the.v.Tennessee *.Gas' v;77. v*
operating newf?ctorie:
ill .appear-:; t- J ( 7} tFood Processing and By-ft Tran'smlssfori^^Com^ny' ^ have
7
Wty-r.*#iv^r^VrV^lV'77.:*?*£'times foriproducts t<rallj
associated Products.
+!>',*.*■ | V-7/^/ formed a company forj
"7''' f1*?'
" 7 7ances 7 only :remotely *;as
with the- output fob; which 7 the ;.%■ (8) Glass, Ceramics,^ahd...^^:^lQita-tion'^:of; ^atprat t gasi^for
C*.\Y*
company had been noted; %; /' ' 7fractories.7<u >„ 7*;j7 7y 7- *:< 7 7
chemical* production, .
7f
Wartime ; expansion? of
the ; 'i (9) Leather,-* Linoleum
and- * Rigid separation of the chemiis
;
J7 ; ^ -7
.
? v4 - rf'r^.vV;1
'
/
.
r
'
:
'i'
f
chemical
industry
confined
means
by;
was
no-'Oilcloth.
(10) Metallurgical.
manufac- '
the
to
industry into its component jby
parts has little justification today.
The real contribution, of the in- •
'77^ ^
7 ture of its customary
1
(1 If Oils and Fats. ; v
:
products on;
(12) Paints, Pigments, Varnish, dustry to American progress,, and :
scale.
New products ,:
its present position in American •
high-balled from test tube and Inks
for
supplies oi7 many essential, as to undertake projects .Otherwise tQ tank car—butadiene, styrene, •
economic life, cannot be measured >
(13) Paper and Pulp,
products, particularly
d/esuuis,} beyond the reach of the inaivia- and others. Research ana deveioprealistically by a system or sta- j
(14) Petroleum.
drugs, and otner line chemicals.
ual
companies,
an<^
ment activities greatly increased.
compilation
which
(15) Pnarmaceuticals and Cos¬ tistical
ex-;
Tiie chemical lricliistx^ ox Orcr*" strengthen,
and
coordinate re— ^ number of products developed metics. 7:,7;7v7eludes
1
petrochemical
activity,
many, on the other hand, was in search and to exchange technical j^y
the industry just before or
separates
pharmaceuticals from
(16) Plastics.
v
i
1914 both comprehensive and well knowledge.
the production of other chemicals, :
(17) Rubber.
during the war have since shown
"hardly existed/This country was markets; (2) to pool the resources
largely dependent on Uerihany of4he'COnstituent.;companies so
r
a<
a
-
•
•
'
.V\
greater
were
,
organized. It was aireauy proauc-
themselves
ing a
value
Foreign * competitors
of
the
wide range of sy^meiic or¬ chemical industry were already
ganic chemicals and nau in fact organized into large units before
attained sucn a lead over otner the
first
large
United
States
nations
in
the
manufacture
of chemical amalgamation. I. G. Fardyestuffs and drugs as to enjoy a benindustrie,
which
included
near worla monopoly in many oi
among its products not only dyethpm
Mnrpnvpr in
them. Moreover, in t.iic production stuffs K.n also most heavy and
tne nrodnction ctuffe but nic^ i-aac* hoomr onri
of heavy chemicals Lreiwtn/ nad fine
chemicals, was created in
been enormously strengthened by 1925. Its nitrogen factories were
the then recent ceveiopment of producing vast quantities of sulHaber-Boscn
makes
Storage and Dry Batteries.
cessed
(20)
Sugar.
(21)
Textiles.
polyvinyl
chloride
Many other new discoveries had,
however, to await the end of hos-
Standard government
gias),
synthesis of ammonia from aunos-
a
and
—£
needed
1—■—"""
The chemical process
is
group
now
^
tries, manqfpeturer of explosives,
most
far larger than sta-
.the
company,
responsioie for
important
developments',
even then a much laiger unit
these
was
ln.the United btates, and
it later became the nucleous of
than any
great German chemical com¬
bine, or dye trust, the lnteressen
Gemeinschaft Farbenindustiie.
the
>
try, and
«n ^1™?,. linked
details but all closely uZ—a
rx..
.
.
,
.
Thus from all sides competition
Products."
/%£
HTl-ix-v
r*r»
was
.
-
_1
The
I-..
1_.
eludes
The formation of
increasing.
only
latter usually
Z
•
in-
1
inorganic
_
and
some
such
strong units as du Pont, organic chemicals, paints and varUnion Carbide, Allied Chemical,
rushes, plastics, and synthetic fi¬
American
Cyanamid
was bers.
But chemistry has pene¬
I The outbreak of World War I, and
therefore, found the United States hastened by the threat that for¬ trated far beyond these artificial
in a
serious -position; from
the eign combines might become the boundaries. The widedield of the
point of
_
Many chemical suppliers of the world.
viewi-
industries
process
is
permeated
products esserttial for the wartime The competitive power resulting with the activities of chemists and
economy were lacking, as were from amalgamation of some chem- chemistryrTheir influence, gainalso the tecnnical inforniation and ical "companies along with some ing stature every day, extends to
making tariff protection enabled Ameri- industrial gases,-food, ceramics,
eaders
steps had to be can I industrial leaders to;meet glass, fertilizers, dyestuffs, medi-
Drastic
them.
for
needed
equipment
,
de- foreign rivals
thken to correct these grave
cost.
By the end
economy
of
both in war and pe«ce,
organic chemical in-
strong
a
of the war the
equal terms, and
on
cinal
.thfse. beginnings l the twice
SL2°Sd Z ment of
meni' rd! exPansion- undertaken
»ev(el.°ft
sites
the Federal Government, and actaken
in
the form nf HH
of tari.fs to us-
sist future development.
r
The
between
years
„
consolidation
furtner
%V
rU
«4.«
M
M/S.
dustry. The end of World War I
could
not
pressing problems of
reorganization, in particular to
manufacturers of explosives, who
seen.^. y
were
faced :with
ducing
excess
the
task
of
re¬
manufacturing ca-
pacity created by the war and of
developing
new
products
for
peacetime use.
Underlying tne
formation
of
larger
companies
was the need (1) to promote efficiency of operations by desirable
reorganization and suf icicnt centralization
to
effect
reduction
in
manufacturing costs, thi s improving the competitive position of the
industry
in
home
and
overseas
pioned for many years by
then
be
/t
^
te, »A M
War
industry
II
M ^
n
V« A
e,
fore-
7. 7r
The part played by the
process
chemical
during
World
commensurate
was
with
its great resources. When the war
clouds
gathered
the United
in the late
'30's
States could thank its
of
"Arsenal
Whether
is
it
and distribution methods, all af/ _ ;
fecting its economies. In the first
place, chemical products and processes
are
typically^; short-lived
because
rapid
technological
changes effect rapid changes in
the
picture of who uses what,,
when, and where . ;
and how* it
human
nor
without
fault,
but is best made. A change in one
more than any other it has found
chciiQicsl t)roduct
bGcsusG of a
the power to create for itself and new laboratory development, may
*
*
7
**
for men
everywhere illimitable make another obsolete.- This may
not,
or
many
an
d as
learn much,- »_
some already have, from a closer
study of the
chemical group s
growth and motive power. Government might well study it, too.
There's nothing mysterious in it,
and the industry is neither super..7.
industry, might
.
...
...
.
,
-
.
.
.
.
.
affect
frontiers."
various
the
for
Boundaries
entrusted
work
raw
charged
(3)
Furthermore, these
in many cases
the
:r
tion
and
ting
across
A
Cement,
A«A
Lime,
77"'77v:' 77-77-
and
age
of
*
of offering, is available
request
E EBERSTADT & CO. INC.
39 Broadway
New York City
Works
I.
Total
du
Co
'
Pont de Nemours
assets
of
•
•'
■
tU
An
>
f chemicals per day. Simultanej
leadine chemical firms have
'
Wlit00 Inllllu I HILO,
^
,
in ihft1
oelr tha
jyjms
inrinctrv
'III"™*
"■
'
of
We have done the following types
1-
loiiowing. lypes oi
,
28
,
ment.
•
the meat packer, has re¬
cently completed a magnificient
new plant at McCook, 111., for the
chemical processing of 100,000,000
pounds of raw fats and oils per
'
16
&
Co.
Include net fixed assets but
572
'i 7' 470
333
706
7
-
•7:7
'
•
77
can
:
247
245
can
"b
line
production
chemicals.
of
of
a
•
industries
1,243.
;
;
t
gasoline
7
liquid
102
94
.
7 •'
.
;;
.•
Chemical
for
Audits
Investments
ing
Process
in
of
Exist-
Chemical
the
Industries.
\
copy
of the graphs showing
of
development
development, article
is
turning
out
glycol
in
Texas,
industries
on
this
the
growth
cheniical
shown
as
page
industries.
in
will be
sent
the
on
:
R.S. ARIES & ASSOCIATES
CONSULTING ENGINEERS
Carthage
and
oil, and
wastes
pumps
.
'•
*
ery
of
chemical
'components,
•
.
ECONOMISTS
the
to ' neighboring
Gas for recov¬
Stanolind Gil and
87
76
Pro¬
for
-7 7
Analysis
Hydrocol oxides natural gas into
121
t
•
Techno-Economic
process
and other products. At
Brownsville
118
89
Portfolio
in and
Viscose; the Jefferson Chem¬
Company, owned by Ameri¬
Cyanamid
and
the
Texas
antifreeze
133
31
this
Use.
Stocks.
•
Even
are,
Studies
Techno-Economic
spectus
producers have
Company,
218
:
210
exclude intangibles.
•
teamed request. Write for ' our newsletter
up with other process industries chemonomics—a
periodic review of
m joint ventures. Dow-Corning is
furrem
financia, and economic de.
m silicones; Monsanto is develop¬
velopments in the chemical process
ing synthetic yarns with Ameri¬
ical
7
39'
20
the
and
year
►302
96
44
44
making chemicals. Ar¬
are
mour,
Rock
39;-',7
744
'
224
•7;„:
337
;
Refin-
Products
Corn
and
ing all
"7
.
7-
••
•
SPECIALISTS IN
-
'
CHEMICAL
-
PROCESS
INDUSTRIES
themselves in turn processed fur.
!
ther and marketed by U. S.
trial Chemicals next door.
Indus¬
Math-
■
ffl.-V v- v
*
•Increase
46
17
Commercial Solvents Corp
United Carbon Co., Inc—
E.
has plang to make 750 tons
chemical
190
13
72.
Union Carbide & Carbon Corp
Air Reduction Co., Inc
Powder
Co as a by.pr0duct
svnthPHp eaqoline Droduc-
its
u
Percent
70
9
Cyanamid Co
Pennsylvania Salt Mfg. Co
Hercules
In-
riydrocoj
Beyond
70 7
*
55
:
American
.
'
upon
Chemical
Tersev
The Carth-
California
anri
the- process
101
■'"7
16
Laboratories, Inc
& Haas Co._
Victor
•
fertilizer companies are now mar-,
1949
12
Rohm
change: methods
do
manufacture of'even the most rasic
materials. In vmany leases
keting pure chemical compounds.
and Coal Tar. Conventional distinctions between. A
$294
15
Mining and Mfg. Co.
Co., Inc
Monsanto Chemical Co
Company and its shares, in¬
technological
but
necessary,,
Phil-
short, rapidly fading.
$42
Merck &
cluding the price and terms
Shell,
are
qji romnanieq of New
<jjana
small
a
there
AVt
Millions of Dollars
Minnesota
Abbott
be
-changes
tion Oil, and the Standard PDIICFtt INDUSTRIES
Iip3
Chemicals.
1939
the
related.
production
examples,
(5) Explosives.
Dow Chemical Co
A Prospectus describing
of
materials and chemical inter-
physical data
chemical Engineering brinci-
and
(Fifteen Representative Companies)
cal Fund
artificial barrier
any
chain
mediates. Certain basic chemicals,
such as sulfuric acid, will always
are
cut-
are
whole
a
chemical ' and
sic
TRENDS IN TOTAL ASSETS
-■
_
whole
(4) Coke, .Gas,
responsibility
77':77':'177': 7,-y.'' .7
diversification
.m'pos^d^n These
nd7strill
m£hanisms - Petroleum companhf™ lnne,,Tl ha
Products,
were
with
V»A
WV A*»A
(2)
in the design and
of
new
plants for
purposes.
companies
industries
process
breaking down. Constant, integra-
(1) Alcoholic Beverages.
of the
involved
construction
war
with much
chemical
merely change the shape and size
of materials and assemble them
marketable products. A list
of the chemical process industries
might, for example, include such
manufacturing categories as:
of
Democracy.'
The research and development inaugurated 20 years earlier made
possible much of the production
that provided the sinews for vietory. The process industries group
was
chemical industry is char-
The
going this may not be far-fetched, acterized by singular ^production
.
lucky stars for its strong chemic-al position. Without it this country could never have fulfilled the
role
as
-
pro-
consequences
clearly
group
dm.m
rvf vnaiicfc
Ponontiir if
ousiy ledaing cnemicdi iiiiiib nave stU(jieg
f0r
manufacturers,
uncfergroup of realists. Recently it has invaded"The DetTOcTemTcTf field
f'TArl
i
-VKl/]
received more recognition and in the Southwest. Du Pont, Mon¬ writers and investors: .77. V.-has been adopted by many techni¬
santo, Dow, Cyanamid, and Union •
Merger and Consolidation Invescal publications and other organi¬
Carbide are tapping the rich, po¬
zations. A chemical process com¬
tigations.
tentials of natural gases. Process
•
pany is by modern definition any
Profit Forecasts. ,;"77v,-7.*•
companies, mainly those which
manufacturing enterprise which
produce
cyclically
fluctuating • New Investment Analysis.
employs chemical change at one
products, are stabilizing their out¬ •
Investment
and fProfit ' Estimates
or more stages of its manufactur¬
puts
by
diversifying. 'Eastman
for New Plants and Products.
ing activity. As such it is strictly
Kodak,
Glidden,
Libby-Owensdifferentiated
from
the
purely
•
Industrial Development Planning.
Ford,
Pittsburgh
Plate
Glass,
mechanical
industries,
which Goodrich
Rubber, Swift, General • Selection of
ProjectsT for Invest¬
rocnovnU
rVMAvvA n
whose future
had brought
Chemicais^;^lnnf3ctaring
made
possible long-range research
grams
much integration in
saw
"tSftnists and
engineers work m inmany
with the large financial and units, ,i The concept ofhas been chamtech- process industries thg' chemical
meal resources of the. larger
and
,
the wars
the in¬
ilw
-1-
:
,
than
more
industry than work wltnin it.
was
new
as
tnat
a
Economic Aspects of the Industry
the rate chemicals is
at
in
explo-
chemical
dustries outside,-the narrowly de-
policy of research, develop-
orous
.
chemicals,
show;
overseas.records
chem:eal industry pursued a vig-
fine
and
classified
the chemical process industry.
.
chemical
industries will gradually
become
that
predict
is
process
industries absorbed into the chemical indus-
had brpadgned its base in the by the science of xhemistry and
chemical Jo^d and was becoming chemical engineering. Its activiincreasingly-competitive in world ties encompass a far greater pormarkets. In France and in Italy
tion of our economic fabric than
large chemical units were 0Perat~ js included in the various classifimg, and they competed in some of cations of the government statisthe overseas 1 markets, including tical agencies called "Chemicals"
the United States.
or
even
"Chemicals and Allied
,
llm,
cess
-
v^iuxmxxcs
u<a,
industry will eventually be
OUiIIt:
c
nitnc-acid, explosives, ana mtrogeneous fertilizers inacp^naexiD of
Chilean nitrate,
thereto^oie f the
world's principal source of cornbined nitrogen; The Baaisehe An-
en-
—
visionaries
concept of "chemicals"
gradually being scrapped, and it
is safe to predict that the various
-Fortune,"
recognizing this, recently said:
Larger Than You Think
tilizers and creating keen compe-
-
-
any
narrow
The magazine
-Seme
pheric nitrogen. She tnus became tition in. world markets. In Great
t
t
„■
,ol
nu
M.
,
T
a
tistics indicate. It is composed of
equipped for- the manufacture of Britain, Impenal Chemical Indus- individual units differing in proa
°
deavor.
food
and, say, paints, or
other arbitrary clas¬
sification not existing in fact. The
statistical
chemical
of
magnitude
—
develop them.
to
distinction between pro¬
a
invokes
classifications do not do justice to
tilities for release of the resources
tne; fate of ammonia and other fer-
ior
process
Soap and Detergents.
(19)
plastics polyethylene, metnyl
methacrylate (Lucite and Plexi-
■
the
(18)
be
to
the
..
,
permanent
peacetime, among them
in
Madison Avenue,
New York 17, N.Y.
;
Volume ni^'Number^O£*•**The'Gorhmfr&alrand-FinancialChronicle* -Jf^\,.,'
f
,
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V/i; •'.-i'-fr'l^:'-
;W>v.7
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r(2679)>J9
•
„
chemicals
.
*
ft
products
t'HH'
«;••./„•/
■t conditions
.drive
'•
of the
down
through these methods-
External
;
:
does
which;
products
completely
or
not ensure
may
replace
against short life
the chemical indus-
There is in
of process. New laboratory
try
cpments
make
possible with much smaller capi-
search.
tal
thus be plowed back, as compared
develproduction
-
may
unusual emphasis
an
the
value
sales
investment, cheaper raw materials, or lower operating costs. A
to
good many products or processes,
much
As
3
as
of
re-
on
to
4%
products
by
of
otherwise, eventually
or
become obsolete, but in the fast-
fJ
jn
ac-
chemical
fact, it sometimes is
and
entirely different order of
magnitude than otner industries,
lation to
celerated
of
In
greatly
an
A second distmguisxiing
feature
of the industry is tne lower ratios
of
and
costs
wage
of number of
wooers to value of products than
industry
a
as
products
sold
are
cbemical
tbe
is
industry
only
that
"ood
as
as
its
quality must bear a rethat use. A quality satis-
.
the
industry
in
chemical
as
whole. In
a
the
operations
many
and
television set that shows pictures
3 by 4 feet and up to moving picture size,
Pacific NW
Group of
proper-
ISA Annual
Meeting
PORTLAND, Ore.—The Pacific
-Northwest Group of the Invest¬
Reeves Soundcraft
we-have-these-chemicals-
velopment. Even when a company
is adding an item to a very simi-
snob appeal. They have no
notes
f
a
be
"""
and
<K1
J*
.<sex
|Qr
worker ;can
tube division alone will earn some
$30V0G0 in June.
In the development stage is a
methods used by the industry in
advertise- *be Past
formulas
appeal," Broader application lar line of chemicals, development
given chemical product always takes time. When a more
achieved only by finding 0r less new chemical is being denever sees the product during the
nevv
uses>
N0r is price always a veloped, 7 to 12 years are not unI entire production process. Hooper- factor. Reduction in price does not usual for product development to
r
dent estimates that this television
pnrnmnn
counterpart for fanciful aavertisor
use.
Offering Completed
a
factory for one use may not be so
for another.
Chemicals have no
jng
listing
which
apparent
no
ment
Bankers
Association
will
but-we-don't-know-what-they're
hold their annual meeting Sept.
is°u<f-ior method. It is based on
8-9 at Gearhart Hotel, Gearhartlne hope that some smart tecliniGearhart, Kinnard & Otis anc£d man
read tbe advertise- nounces that
they have completed
''t
ment> fe a potential use for the "«««»
hour drive from Portland). 'In
product in his own work.
the s,ale of $168,750 Reeves^^
addition to the regular business
Finally, chemical products take nnn .
J' ,
0ffprPri in
meetin£i golf and other entertainan exceptionally long time for de- linit_
f d.7(:n nrinPinai' ommint nf
ment are Planned,
on
oasis of function. It is axiomatic
tne
is
rale of obsolescence
for
as
chemical
industry
chemical
moving
f
1.6%
be
; may
ties in trade-journal
ments, a method of development
known, for lack of a better handle,
may
whole.
chemical
about
derivatives
of
there
chemical
process,
and
selling
prices of principal products, both
the old ones. Large capital invest- always involve consideration of
ment, although often necessary, incidental, if unwanted materials,
of
opment
partially
'/for
demands.
Faced, however, with
the necessity of raising very large
Should uses develop, demands are■'sums of money quickly, chemical
often for small; quantities only, companies ' entered
the capital
But a lot of these little uses add,.markets- Conditions then existing
up to an extensive use of the basic in the equity markets forced the
cnemicals. •
Because market re- industry to raise most-of these
search for each of these aeriva- needed funds by borrowing or
lives may not be worth the cost, by the sale of preferred stocks, a
companies pften seek uses simply departure from the conventional
is sometimes the case, tue cost line
as
conditions, such as war, give rise of collection is greater than can
to new
shortages, * intensify« old be recovered by sale of the reshortages,, and hasten the cievel- suiting acicl. Evaluation of every
/
'
0?v0
i
sharps
common
'
r
l
t-
'
k
Joins Tucker, Anthony
'
non
'
hi
.
(,
(Special to the financial chronicle)
Reeves Soundcraft makes transformers,, master discs and, magnetic recording tape forThe radio,
television and allied fields, and
BOSTON
Bapnard
^
'
.
Mass
'with
is
H
Henrv
Arrthonv
Tucker*
State Street
'
-,uv
--.
With Waddell & Reed
Trends;
•' Of
that material free. For 20 the
larger quantity of material «ven
| the average worker must be un-
r?1?]
'
highly
^
i
the
were
chemiSl
years
the oil industry
or -more
many
junked arid burned countless tons
1
X
of gases and other materials for
?-want of suitable uses.
Before
Phirlfi^T ^rirpl" Rdn^e discovered phenol >in jcoal
nnntar - (1834) the latter had been
5??, 51?
1
W
jftwr
■
of
j now esumaiea ai .^i?,uuu.
,
The
chemical
affected
by
is
industry
.
from
ies
rather tnan
ness
•
-
>
^
^ chemicals, v
Germany, and
from
•
Of
course,
->
the
ar>-
(This Announcement is not
some
iperhaps no produce .some simple
simple
i basic, materials. Capital requireCapital require-'
-
and
was
need
some
comnanies
cal
were,
in
(Banc# Africwla Hinotcrario*
r'
seasonal change being
smoothed over by storage of pioany
Issue of
of
Issue
chemical
other
from
agements.
In the early
companies,
1926,
i
"}lnar
M0(jern trends
toward direct sale
Qc retaii consumer products have
?
summg
ously
unemicai saies are usuauy not
industries tend to balance
pfhpr
other,
M,h
each
TnHppH
manv
indeed,
many
"nonchenncal"
Viavp
have
past
two
thp
the
pntprpr)
entered
rtahiiiyina
stabilizing
fipiH
Held
decades
to
infinpnpp
influence.
nrpvi
previ
a
one-shot proposition. Producers tnan
Relative
price stability of chemas compared to the
products they replace is
especially significant factor.
While silk as a natural product
an
greatly influenced by natural
the hazaids of tne
ducer
must
as
jn
serve
product sells at
a
under fixed
relatively fixed
quality
relation
*n
quality
use
to
the customer
of
and
as
well
1
,.
.
_
?n(l 171 J^tSI
^
of
necessities
\
production
(in
stand-
supply
short
for
chemical
example, 1941-45 —
themselves
managers,
mindful of the tricks of the trade,
have
S
preferred to allocate
or
ra-
®se
of
ftr
nln
Dated
would eliminate demand.
of
Because of the nature of chem-
ical change, production of the ma-
terial
desired frequently involves
the unavoidable manufacture of a
by-product,
•
-waste
a
product.
which
joint product, or a
A by-product is
comes
out of
the pro-
:
one
[
but has less value. A joint product
cess
•
?
I i
''
along with the main product
promotion.
sales
casf. *n, consumer
Unlike
the
goods, sbld di-
fecd^ to the individual, ballynoo
war^b ?*
;in
fie*d a electronics, no otuer
mdustry depends so largely „on
£?nsui?er techniCTl requirements.
Therefore, it behooves fhe manufacfur.er^tp pi^intain a ^mpetont
fec"UiCaL.service organization ^to
Hipotecario
de
Colombia)
This gave the
Twenty-Year 6%% Sinking Fund Go'd Bonds of 1927
great
impetus
to
Dated
over-
deficjences in these products. Starting from sciatch, the
industry had to undertake research
given
help
October
1926.
Due
November
1, 1927, Due February
1,
1927,
Due
October
I,
(Banco
Issue
Hipotecario
I, 1917
1,
de Bogota)
of
May. 1927,
Due
May
I,
1917
Issue
of
October,
1927,
Due
October
1.
Convertible Certificates for 3% External Sinking Fund
of ibe
proye to
!
.
l\
|
[
oT; waste
can
<ell
: v
•
.
very
'
.
m„cli about ^hat
,
>:
a
The time within which the Offer,
became well known on the secur-
jty markets.
Large sums were
needed to finance research and •
develop new products and to add
to facilities to make these products. A very substantial part of
this money was obtained by retention of a large percentage of
current earnings.
Growth in the
dated June 25, 1942,
exchange the above Bonds and the appurtenant cou¬
to
for Republic of Colombia, %% External Sinking
due October 1,1970, may be accepted
pons
Fund Dollar Bonds,
is
hereby extended from July 1* 1950 to July 1, 1951.
The
period for exchange? of Convertible Certificates for
3% External Sinking Fund Dollar Bonds of the Republic.
due October 1,1970 in multiples of $500 principal amount;
has also been extended from January 1, 1951 to January
.
.tion of ne.w and more profitable ...
fields.
,v
• •
1,1952.' Ay. 7.:
V ^v
'j ^
,V
Copies of the Offer may be obtained upon application;
the Exchange Agent, The National City Bank of New
.New-York-15, N. Y.
7/: ;
■
;
disposition.^ Frequentiy ^emicab ^>^M^ ^ ®r*f *
^
In World V/ar II the chemical :
even waste products^must ^be sPld' cKeifilgf 'can ' tell "aT tot frpnji j a mdustry was called upon , foe a
or -processed- because- they- cannot structural- formula, or even from large increase in facilities. Some £
j
.
NOTICE OF EXTENSION
and chemical companies
the vcoproductsi may ^ velopment of chemicals. NpnP j of some senior securities and saved .* :
be. Included in the-pro—the senses—sight, taste, or taucjli—, time^ and effort for -the exploita-
item:.is the expense of by-product
Dollar Bonds
Republic of Colombia, Due October 1, 1970
important part 0f the national
economy,
to
i
1947
and
York, Corporate Trust Department. 20
j duction.TOst Of every marketable-
;
1917
Twenty-Year 7% Sinking Fund Gold Bonds
in
leading companies was accomresults from a chemical operation
pjjsbed by absorption of smaller
in which two or more products rducts. by .his customera. v |
< ^
units or the combination of sev- obtained' have
equal or > nearly
The application
of chemical eral units by exchange of equity
equal value. c Disposition of any products is not always apparent securities. This form of financing-i
| valueless
1946
Twenty-Year 7% Sinking Fund Gold Bonds
for
g°vemment
by
February
I,
Mortgage Bank of Bogota
know-how, and
production of
develop
facilities
November
Dated
,
come
an
means
April 1, 1928, Due April I. 1948
(Banco
Dated
n
latlonsmp ot marKets.
Service is one of the best
Fund Gold Bonds
15. 1940
Twenty-Year 7% Sinking Fund Gold Bonds of 1926
"J
building facilities for war-needed
(^ben moie than one product c«n produc^s
be Pl'9duced from the same raw
Through the 20's and 30's the
materials), and the close lnterre- cbemjcal industry developed into
prices rise to the point where they
tion their products rather than let
Due April
1947
1,
August
Mortgage Bank of Colombia
these items. Encouragement was
materials
raw
-.V-t
Sinking Fund Gold Bonds
Due
Twenty-Year 7% Sinking Fund Gold Bonds of 1927
build
During periods when the
of
chemicals has
been
—
<
April 1, 1927. Due April 1. 1917
Doled
.
ards.
,
pj yf:
.
than sufficient to
finance growth
Imports of orSanuchemicals and , dyestuffs
were cut oft sharply at the time
industry
,,
.
her% IS a 0r^af diversity both
v
>
*Twc»!y-Year 7% Sinking Fund Gold Bonds of 1928
inSs were more
of World War I.
.
.
pro-
sell him
export trade, nylon as a chemical
price
maintain
must
product
xiie
194?.
IS.
:0.
: '
>'
■
ana
heavy
continue to sen to tne same cus
large
tomers year after year because cnemicais aid not require iaige
markPt
a
relatively narrow as funds according to today's standobtain this marKcts are reiauveiy narrow as,
J..
,
.
.
compared to the vast retail mar- aras- As a result, reiainca earn
gooc|s
-
(Banco de Colombia)
thp
products,
conditions and
use. of
reauire
the
1928,
■■■
Twenty-Year 7% Sinking Fund Gold Bonds of 1927
during the
natural
was
in
companies
during
consumer
teal
laDoratory. cuiosiues
I9i6
'...ti,
.
Bank of Colombia
and
curosities
laooratorv
expansion
1.
January
Due
1927,
August,
Issue of April,
century
(
:
of
•
'
7%-Sinking Fund Gold Bonds
1927,
Jaiiiury,
April
Due
Guaranteed Twenty-Year 6% Sinking
years of the present
the chemical
industry
duct. Violent cyclical change is
created new problems with which' continued
to
show slow
and
minimized by diversity of producsome
units 0f the industry have-steady growth. Inorganic chemition and variety of customers m
bad
cope.
cals were basically most importother industries. Changes in conchemical sales are usually not antOrganics were little more
•
'
Sinking'Fund Gold Bonds
Gaaranteed Twenty-Year 7%
general.
Guaranteed Twenty-Year 6%
production,
-
Agricultural Mortgage Batik
^
>.•
Issue
year-round
.
Colombian Mortgage Bank Bonds
limited.
Guaranteed Twenty-Year
nences-
t-
To the Holders of V;'
v ■
goes
rJistri-
fartorv
Offer)
an
for
^
through
.
ice
.
1TiafiP
-y
*
iWith the turn of the century
■
-
-
Inc., olKansas City, Mo.
c°l°^television.,
import
to
*
works.
'
_
assumed the corporate form of
con- enterprise,
more
perhaps as ; a
fpohnoloffioal
rhan^e
technological change SU7nei. in'the chemical industry, trend of the i.*.
times than as a vefrom changes in busiFuuy two-thirds of chemical sales hide lor financial growth. Chemi-
conditions.
.
'
less
<High, percenUlge- of sales
for industries. Tne greatest eLect
directly from producer to
}
nerships
i principally
and
seasonal changes than other ,ma-
I
began their existence in the
a
*
-dwision^iofrtRraingtoii R4hd, Inc.i
GREEL1EY^ Colo. — yWilliam_ J.
on Bishop is with Waddell & Reed,
industry^' today,'■m^ludin1g Remington's patents
worthless and, what's more- ments were small
troublesome product of the ; gas additional
capital
only
.
business: cycles
important companies in
•^.y:<sPeoia! to The financial chroniclej■.? uw
bought the television picture.tube
nineteenth century as small part-
b
1
v
"
V 7 ; AGRICULTURAL MORTGAGE BANK}
^
^ A.
tUailro AxrirOia fIi|M>te<'arib)
V
■'
Dated, June Z%.
Exchange - Place,;
%'■ V.
195^"r.
u'.i 7
'r'\-
Rvi> Pedro Bernal-E.
'''>A" r (Gerente) v " '
'>1
-
20
The Commercial and Financial Chronicle
(2680)
which is not provided
Xennamela! Elects
consolidated
have
Additional Directors
will
1964
after
lien
by
offer
declared
was
Scores-of
Bond
trophy
outing of the Bond
Jersey were:
of
New
The
bonds.
new
;
•
collateral
has been
and
mortgage
;
trust debt of the company
reduced
Low Net—All Classes
Kearns
T.
George
1949
G. Schuster
George
Kennametal
its
has
Inc.
to
five members
at
a
three
by action
taken
trobe, Pa.,
The
main
the
in
on
two
offices
directors
of the company
in
ration
1943,
Jas.
87
Mr. Issler
*
1
.
70
17
•
~
17 70
89 19 70
_________
match.
won
Wm.M.Farrar, Schwabacher & Co.
Jas.
A. A. Johnson^
Van
J.
J. P.
&
Nevv-
Weissenborn,
ark
37
73
Runoff—Won
KICKERS
The
A
following tied at 77:
Securities
Savings
GENERAL
Y
& Co
17
TOLL BRIDGE
70
HOUSING
Municipal Department
B
Clark
...
''v >V',
SEWER
87
...
BONDS
WATER
ELECTRIC
Grass—Class
Low
Corp.
OBLIGATION MUNICIPAL BONDS
MUNICIPAL REVENUE
Institute,
R. P. Bennett, E. A.
won
Union
-■
Howard
...
Miller.
was
Wilson,
R.
in
(2nd Low Net)
Corp.,
York City,
D.
*
Co., Inc....... 87 17 70
Newark
H.
Clubs
Iron
Raymond
by
East
of
set
81
_____
Maude,
by
HANDICAP
H. D. Miller, Nugent & Igoe,
Welzmiller, J. B.
L,
Topping & Co.
R. H. Monaghan
-110
-
Ryan, Goldman, Sachs & Co.
S. R. Terrill, J. D.
Hise, Parker
Dealers
W.
Whitcomb, Phelps, Fenn &
32 72
A
Low Net—Class A—Tie
-
Gilbert, Hornblower & Weeks
E.
R.
Low Net—Class C
(1st Low Net)
Schuster, for many years Manager
120
Broadway, New
of the statistical
department of
on
June 23 celebrated the 30th
I Kidder, Peabody & Co., 17 Wall
anniversary of its founding. The
Street, New York City.
two
remaining survivors of the
This strengthening of the board
original
founders, ' Hubert
E.
is in keeping with the demands
occasioned b.y expansion and di- Rogers and Franz H. Hirschland,
Summers
Orange
Grass—Class
Low
Currie, Jr., Troster, Currie &
:
2nd Low Net—Class C
•>•••
W.
Howard
Hanseatic
York
75
101
Fairbanks
6 70
Institute,
*
Hitehings
Roy
Celebrates 30 Years
New
r.
76
Welzmiller, J. B.
R. Paul
New York Hanseatlc
since its incorpo¬
and George G.
25
C—Tie
J. Paul Rutter, winner__104
Roll & Co.. Iiic.___.i_87
George T. Kearns, Treasurer
are:
______100
.
Griggs,
Baldwin..
Newark
R. Paul
Roll &
elected
&
L.~Maude,
Savings
La-
at
June 20, 1950.
new
W.
the company's 1952
ally reduced
maturity.
special stockholders' meeting
held
the success of the
exchange has substantia
of
offer
Issler,
Baldwin
by
about 31%, and
enlarged
of directors from
beard
reduced
-
*
with 1940, have
$1,932,000 or
compared
been
M.
M.
by $57,238,000 from Dec.
31, 1939 to Dec. 31, 1949, or about
41%. Fixed charges for. .the year
Ben
City Savings
Bank, Jersey City
Bank, Newark,
t\
101
1st
oper¬
the directors on May 18,
and on May 26 the Interstate Com¬
merce Commission authorized the
State
-winner
■
Thursday, June 29,1950
John J. Roe, Hudson
,
Daniel Reibert, National
the
for
contestants
ative by
issuance of the
B
MacKey,
Dunn,
Low Grass—Class
Club of New Jersey
the annual
at
Club
property of the company.
The
R.
Dunn & Co
of N. J. Bond Club
a
sub¬
on
stantially all the existing railway
,
W.
and
secured
be
;
the
on
Birmingham,
direct first mortgage
Outing
Net—Class
Low
2nd
Scores at
Division "tor
Western
and
Atlanta
lien
first
direct
a
company's
for the first
bonds, initially will'
...
cAllen & Company
94
„
directors,
of Kennametal. Kennametal prod¬
which
ucts,
combine
ness
with
now
<
serving many
unusual
to
means
reduce
high
heim
working
the first, and is still
activity. The company
for
coal
mining
over
change,
New
96 22
York
4
74
is
York
Stock
LISTED
-
Bank & Insurance
EMANUEL, DEETJEN & CO.
—★—
Ex¬
that Charles H,
associated with
Chicago office, 208
Salle
La
was
attainable
Potter
&
Street.
Mr.
UNLISTED
and
SECURITIES
Public Service Issues
(New York. Stock Exchange
New York Curb ^change
J
TVTomHprc
ivicmutub
MUELLER & CURRIER
now
the firm in its
heretofore
Underwriters, Brokers and Dealers
announce
Eldredge
South
alloys
Municipal
CHICAGO, 111.—Reynolds & Co.,
dredge
with
New
White,
Securities
Reynolds in Chicago
jet engines to be operated at the
fuel-saving high temperatures un¬
available
1922
Broad Street
is
"members
to supply blades for turbo¬
pany
30
New Jersey
25
>
Their
hea£rresistant
product,
Kentanium, has enabled the com«
associated
^
Charles Eldredge With
hard-rock
and
been
Erich
/since V-J Day has become known
for its Kennametal mining^ tools
mining.
has
corporation for
O. Grunebaum
President of the corporation. ;
was
major
the
years.
Manufacture of tools for metal-
\St
Brown,
Weld & Co
Chair¬
as
J.
B
a
who
with
productivity.
crease
former
Fred
Net—Class
Low
point of service, the
oldest employee is Walter Oppen-
in¬
and
the
From
man.
hard¬
strength, are
industries as
costs
still members of the board of
are
versification of business activities
t
Established
1st
24 Commerce
El¬
Phone
Co.
Mitchell
Midwest
stock
Exchunge
^Commodity Exchange, Inc.
Street
Newark 2, New Jersey
formerly with Talcott;
-s
120
York 5, N.
New
Broadway
Y.
■
2-7660
to gas
turbine builders.
Many other uses for metal having
such high strength at 2,000 deF.
are
month.
grees
#
every
:
being
New
discovered
.
New
Jersey
;
BONDS
Securities
Atlantic Coast Line
Mutual Investment
Funds
RR. to Terminate Ex¬
change Offer July 26
The directors of Atlantic
Coast
Line IiR. Co. have set July 26,1950,
as
the termination
date of the
Koellner & Gun I Iter
Phone
due
1952
for
new
C.
:
McD.
Davis
assents
over
,
announced
was
Davis,
stated
been
as
of
3-0190
744 Broad St., Newark 2, N. J.
York City
Newark Telephone:
22
BANK
Mr.
June
received
state &
INSURANCE STOCKS
MUNICIPAL
Fidelity
BONDS
I. S.
trust
Municipal Bond Department
MArket
N.
Y.
Federal Reserve System
New
Phone—REctor
The
new
STATE and MUNICIPAL
se¬
ries A bonds
are
We
now
being de¬
livered in exchange for first
solidated mortgage bonds.
f
new
•
New
-
.
•
"
v..
{
•
y
«*••••»
i
,
;
■
the
bonds
rate
bf
issued
have-the benefit of
a
new
Will
sinking fund
-—
Distributors
Municipal Bonds
bonds issued in
35% of the
in exchange,
IXC.
Dealers
Underwriters
exchange will be secured initially,
bond for bond, by pledge of the
exchanged first consolidated mortgage bonds and in addition by
pledge of unified mortgage bonds
I at
TRIPP & CO.
Jersey State &.
★
★
★
FOUNDED
810
Ryan, Moss & Co.
5
Broad
St., Newark
Tel. Mitchell 3-4000
PUBLIC
1812
System Teletype
NK
277
TELEPHONE:
HA
v
•
MUNICIPAL
REVENUE BONDS
1, N. J.
Tele. NK 348
Commerce St., Newark 2, N. J.
Tel. Mitchell 3-8350 N. Y. Tel.
WOrth 4-2489
Bell
STATE
NATIONAL STATE BANK
'
;
BONDS
Specialize In „\/\
r\ ■
con-
In addition to the higher rate of
-I Interest, the
Wire COrtlandt 7-8075
be
general mortgage
York
2-4383
on
not
Teletype NK 170
Tel. MArket 2-5800
3-3430
Y.,
business
will
y.
Federal Deposit Insurance Corporation
Farmers Trust Co., agent, 22 Wil¬
liam Street, New York 15, N.
of
NEWARK, NEW JERSEY
MEMBER
1891
18 Clinton St., Newark 2, N. J.
have not yet assented to the offer
will -be received by City Bank
close
Fidelity Union Trust Company
Rippel&Co.
Established
:
'
union
^company
1852.
the
1-838
municipal
STOCKS
bonds■
21
Letters of assent and letters of
transmittal from bondholders who
to
N. Y.
Teletype
4-3432
Mitchell 2-2800
from
950 bondholders with aggre-
July 26, 1950, - but
accepted thereafter.
WHitehall
NEW JERSEY
by
holdings in excess of $24,900,000 principal amount of the
o u.t st a n d i n g first consolidated
up
Tel.
New York Telephone: REctor 2-9289
gate
bonds due
YORK 5, N. Y.
37 WALL STREET, NEW
general
President.
that
had
June
& COMPANY
DIgby 9-0767
mortgage 4% bonds, series A, due
March 1, 1980 (bearing interest at
the rate of 4y2% to Sept. 1,
1952),
it
MArket
Open End Phone to New
RAND & CO.
Mac llltioi:. MlfJXlt
31 Clinton St., Newark 2, N. J.
company's offer of exchange of its
first
consolidated
mortgage 4%
bonds
MUNICIPAL and REVENUE
Jersey
Municipal Bonds
2-5252
40
WALL
NEW
STREET
YORK
5
TELETYPE:
NY 1-2030
Open-end phone to New York City
BArclay
7-5928
\
Volume 171
Number 4920
...
(2681)
The Commercial and Financial Chronicle
Bond Club of New
Arthur R. Robinson, Fidelity
Julius A. Rippel,
Edwin
L.
Beck,
Kenneth Spear,
Hinchman, Ira Haupt & Co.,
Union Trust Company, Newark N. J.;
Inc., Newark, N. J.; Robert M.
New York City
Financial Chronicle, New York City;
City; Alex
Seidler, Jr., National State Bank, Newark, N. J.
Jack
Nagle, C. J. Devine & Co., New York
Harold B.
S.
J.
& Igoe,
Bank & Trust Company, New York
Miller & Co.; Newark, N. J.;
Cyrus R^ Currier, Mueller & Currier, Newark, N. J.
Van Ingen & Co. Inc., New York City; Harry
City;
D. Miller, Nugent
East Orange, N. J.; Courtland B. Parker, R. W. Pressprich & Co., New
City; Martin M. Issler, Griggs, Baldwin & Baldwin, New York City
Kenyon, Carteret Bank & Trust Co., Carteret, N. J.; G. B.
York
Lee
Underwood, Irvington
Co., Irvington, N. J.; Edward J. Wright, Goodbody & Co., Jersey City,
C. E. Clifton, Trust Company of New Jersey, Jersey City, N. J.
Smith, Pershing & Co., New York City; Roger
William Roos, MacBride,
Edwin F. Kezer, B. J.
Trust
Jersey
Phelps, Byrne and Phelps, Inc., New York City; J. A.
Leek, Coffin & Burr, Incorporated, New York City
Charles S. Bishop, Central Hanover
t
T. G.
N. J.;
Ray Watson, entertainer; Fred J. Brown, White, Weld
Co., New York, Chairman of the Entertainment Com¬
mittee, leading the group in songs
Carroll, Lee W. Carroll & Co., Newark, N. J.; Carl Preim,
City; James P. Duffy, Aubrey G. Lanston & Co.,
New York
K. D. McLaren,
21
The Corporation Trust Co., New
R. W. Pressprich & Co.,
Inc., New York City
York City; Charles S. Morley, Short
Hills, N. J.; C. Wallace Smith, Smith, Barney & Co., New York City, President of the
Bond Club of New Jersey; Wm. A. Fiedler, H. M. Byllesby & Company, Incorporated,
New York
City
:
-
•
22
(2682)
The Commercial and Financial Chronicle
...
Thursday, June 29,1950
Holds Annual Field Day
p;
G. Wilmer
Slaight, Jr., Granbery, Marache & Co., New York City; Ogden E. Edwards,
Bear, Stearns & Co., New York City; Edward H. Hills, Eldredge & Co., Inc., New
York City; H. Peter Schaub,
Jr., Harry P. Schaub, Inc., Newark, N. J.
Walter H. Schumann, Dolphin & Co., Philadelphia;
Wilson, Union Securities Corporation,
New York City
Robert E. L. Lewis,
Jr., Ryan, Moss & Co., Newark, N. J.; Jack Kraus, Colonial Life
Orange, N. J.; William P. Wilson, W. C. Langley & Co., New York
City; Robert R. Krumm, W. H. Morton & Co,, Lfrcorporated, New York City
Insurance Co., East
Frank
Bailey, C. D. Robbins & Co., Newark, N. J.; B. H.
Smith, Bankers National Life Insurance Co.,
Montclair, N. J.
Raymond R.
Charles E. Reed,
Kean, Taylor & Co., Newark, N. J.; H. D. Laskamp, Merrill
Lynch,
Pierce, Fenner & Beane, New York City; Donald Lane, Merrill
Lynch, Pierce, Fenner
& Beane, New York
City; Hunt Marckwald, W. E. Hutton & Co., New York
City:
Herbert A. Hoehn,
Gregory & Son, Incorporated, New York City
H. C.
Jerome C. L.
Walter
Julius
D.
A.
Tripp, Tripp & Co., Inc., New York City;
Fixter, J. W. Sparks & Co., Philadelphia;
Rippel, Julius A. Rippel, Inc., Newark, N. J.
Ballou, Hay den, Stone & Co., New York City; Jack
Sachau, Blyth & Co., Inc.,
City; John P. Ryan, Goldman, Sachs & Co., New York City; Harold J.
Kennedy, E. F. Hutton & Company, New York City; George Henderson,
New York
Harris, Upham & Co., Newark, N. J.
H.
Stanley Krusen, Shearson, Hammill & Co., New York
City; W. M. Whitesell
Mutual Benefit Life Insurance Co., Newark, N.
J.; Foy Porter, Estabrook & Co.,
New York City; Jim Johnston,
Bramhall, Barbour
&
Co., New York City
Taber
J.
Chadwick, Taber J. Chadwick Co., New York City; James D.
Topping,
Topping & Co., New York City; J. Kirk Milnor, New York
City;
Donald K. Mackenzie, Bank
of America, New York City
J. D.
I
Volume 171
Number 4920
...
(2683)
Commercial and Financial Chronicle
The
On
Friday, June 16th
Joseph R. Mueller, Mueller & Currier, Newark, N. J.; Russell V. Adams, J. S. Rippel
& Co., Newark, N. J.; Stanton M. Weissenborn, Parker & Weissenborn, Inc., Newark,
N. J.; Herbert I. Shaw, Vance, Sanders & Company, New York City;
A1 Johnson, Federal Trust Co., Newark, N. J.
Fred J. Brown,
New York
White, Weld & Co., New York City; Joe F. Rush, Reynolds & Co.,
J.
East Orange, N. J.;
Clark, Dodge & Co., Newark; W. Deane
Pruden, MacBride, Miller & Co., Newark, N. J.
E.
Egner,
James
Morse, Bank of Montclair,
New York
Gilbert, Hornblower & Weeks, New York City;
Co., New York City;
Richard Whitcomb, Phelps, Fenn &
Grady Wells, Andrews & Wells,
Wells, Jersey City, N. J.; Jim Currie, Troster, Currie &
City; Jay Richardson, Halsey, Stuart & Co. Inc., New York City;
John J. Harris, New York City
Chick Spring, Outwater &
Summers, New York
H. C
New York City; Jack Clark, Chase National Bank
Kirk Hopper, Equitable Securities Corporation, New York City;
Horace Sylvester, Northern Trust Company, New York City
Brewster, Allen & Company,
of New York;
Montclair, N. J.; Gilbert L.
Montclair, N. J.; R. Paul Welzmiller, J. B. Roll & Co., Inc.,
City; George J. Heath, Bank of Montclair,
•
Charles H. Henninger, Nugent & Igoe,
23
Inc., New York City
City
G. C. Haas & Co., New York City; Scott
Russell, Glore, Forgan & Co., New York City; Richard F.
Saffin, Boland, Saffin & Co., New York City
Bill Mezger,
Dick Rand, Rand& Co., New York City; Ed Purcell, Commercial Trust Co of New
Jersey, Jersey City, N. J.; Harry Zimrner, Commercial Trust Co. of New Jersey,
Jersey Clty> N- J-
Jim Ransom,
Harris Trust & Savings Bank, New York City; Norton P. Rogers, Rogers,
New York City; Wilbert Campbell, Campbell & Co., Newark;
Banks Moyer, Washington, N. J.
Gordon & Co., Inc.,
24
(2684)
The Commercial and Financial Chronicle .Thursday, June 29,1950
At Montclair Golf Club
Norman
Brassier, Paterson Savings & Trust Co., Paterson, N. J.; Archie C. Barbata,
of Nutley, Nutley, N. J.; H. L. Rost, Peoples Bank & Trust Co., Westfield, N. J.;
Bank
Howard F.
Graham, Stone & Webster Securities Corporation, New York City
Tom Aitken, Peoples National Bank & Trust
Co., Belleville, N. J.; A1 Luscombe, Peoples National Bank & Trust
Co., Belleville, N. J.; John J. Roe, Hudson City Savings
Bank, Jersey City, N. J.
Inc., Newark, N. J.; Daniel L. Reiber,
J.; Richard H. Monaghan, Newark, N. J.;
Orange, N. J.
J. Albert Williams, Nugent &
Igoe, East
Wm. H.
Boland, Boland, Saffin & Co., New York City; Walter F. Coss, B. J. Van
Ingen
Inc., New York City; Robert W. Lane, MacBride, Miller & Co., Newark, N. J.
Inc., New York City; Daniel E. Fitzpatrick, Phelps, Fenn & Co., New York City;
L. Walter Dempsey, B. J. Van Ingen & Co.
Inc., New York City
A1 Milloy, First Boston Corp., New York City; Frank
Cullum, W. C. Langley & Co., New York City; Dick
Cleary, First Investors Corporation, New York City
Warren K. Van Hise, Parker &
Weissenborn,
National State Bank, Newark, N.
& Co.
Frank R. Cole, F. R. Cole & Co., Newark; Monroe V. Poole, Geo. B. Gibbons & Cornpany,
O. D. Griffin, Griffin, Kuipers & Co., New York City;
Henry Rost, Peoples Bank & Trust Co., Westfield, N. J.;
Randall M. Keator, Jr., Lord, Abbett & Co.,
w
New York City
J. W. Kress, Howard Savings
Institute, Newark, N. J.; Stewart R. Terrill, J. D. Top¬
ping & Co., New York City; Jas. G. Campbell, Jr., W. E. Wetzel & Co., Trenton, N. J.;
W. L. Maude, Howard Savings
Institute, Newark, N. J.
Charles B. Schubert, Emanuel,
Deetjen & Co., New York
&
City; Tom Benton, Benton
Nicholas, New York City; Rudolph H. Deetjen, Emanuel, Deetjen & Co., New York
City; Jos. M. Byrne, Merchants Manufacturers Fire Insurance Co.,
Newark, N. J,
Volume 171
Number 4920... The Commercial and Financial Chronicle
v
New York Security
Mortimer
W.
Landsberg, Brickman, Landsberg & Co., Chairman of the Board of
New;. York Curb Exchange; George A. Searight, Eisele & King,
Libaire, Stout & Co.; John J. Mann, Vice-Chairman of the Board of Governors of the
Governors
of the
>
v..
*■
.
•
>
(
(2685)
25
Dealers Association
Philip C. Kullman, Jr., John J. O'Kane, Jr. & Co.; Charles M. Kaiser, Grady, Berwald
& Co., Inc.; John F. Burke, Merrill Lynch, Pierce, Fenner & Beane; Harry D. Casper,
John J. O'Kane, Jr. & Co.
New York Curb Exchange; John J. O'Kane, Jr., Chairman Entertainment Committee,
John J.
O'Kane, Jr. & Co.
Leslie B. d'Avigdor, d'Avigdor Co.; Harry MacCallum, Jr.,
MacCallum & Co., Mt. Vernon, N. Y.
Harold B. Smith, Pershing & Co.
Lou
Singer,
Roy R. Larson, H. D. Knox & Co., Inc.; Jim B. Durnin,
H. D. Knox & Co., Inc.
(and his trusty Chevrolet)
Walter Filkins, Bert Pike, and Sidney Woolwich,
Troster, Currie & Summers
all of
Arthur A.
George L. Collins, Geyer & Co., Inc.; Joe S. Albert!,
Walston, Hoffman & Goodwin
Winner, Hettleman & Co.; Bill Frenkel, J. F. Reilly & Co., Inc.
Herbert Singer, Singer, Bean & Mackie, Inc.
Howard P. Frey, Howard P. Frey &
Co.; Ken Howard, J. A. Hogle & Co.; Ted Plum-
ridge, J. A. Warner & Co., Incorporated; John F.
McLaughlin, Reuss & Co.
McLaughlin,
26
The Commercial and Financial
(2686)
Annual Summer Outing, June
'
'
i
Arnold J. Wechsler, Ogden,
;
!1
'
"
<•
■
'
Edward
Friedel,
''
'
'
'
'
•
Wechsler & Co.; Sidney Jacobs, Sidney Jacobs Co.;
George V. Hunt, Starkweather
Allan
;
guest; Jules Bean,
Mackie, Inc.
Singer, Bean &
& Co.
Arthur
J.
Kurt
Mel S.
Wien, M. S. Wien & Co.; Bob Franklin, M. S. Wien & Co.; Gene Stark,
Merrill Lynch, Pierce, Fenner & Beane
'
...
Thursday, June 29,1950
23rd
1
*
'
'
"
Jay Duga, Merrill Lynch, Pierce, Fenner & Beane; Arthur Marx, Wilson &
Inc.; A. H. Nollman, Berk & Company; Gus Schenck, Hicks & Price
Burian, Daniel F. Rice & Company;
Wechsler, Heimerdinger & Straus
Ruskin, Ward & Company; M. K. S. Altman, H. Hentz & Co.; Robert Dowling,
Pulis, Dowling & Co.; A1 Schmitt, Hay, Fales & Co.
I'
Chronicle
Herman
Harold Allen,
Marx,
Allen & Company; Larry Wren,
Allen &
Company
Frankel, Singer, Bean & Mackie, Inc; Henry B. Gersten, Gersten &
Frank San Filippo, Gersten & Frenkel 1
Frenkel;
<F
Charles M. Zingraf, Laurence M. Marks & Co.; Arth
John J. O'Kane, Jr., John J. O'Kane, Jr. & Co.;
Bache
&
Co.;
Courts & Co.
Volume 171
Number 4920
...
The Commercial and Financial Chronicle
At
Gerard F.
Edward
J.
Alfred J. McGowan,
27
Hempstead Golf Club
H. D. Knox,
H. D. Knox & Co., Inc.; Ely Batkin, Batkin & Co.
Irving Ittleman, Frank Ginberg & Co.; Frank Ginberg,
Frank Ginberg & Co.
Seligman, Lubetkin & Co.; T. Reid Rankin, R. M. Horner & Co.;
H. E. Kuehner, Joyce, Kuehner & Co.
& King Securities Corp.; Jack Bloom, Public National Bank & Trust
Co.; Harry A. Michels, Allen & Company
(2687)
,
Hulsebosch, Herzog & Co., Inc.; Frank Dunne, Dunne & Co.
Enright, Executive Secretary of New York
Security Dealers Association
Sam King, King
V
Abe
Frank W.
Aigeltinger, Aigeltinger & Co.; Philip G. Volpe,
Bendix, Luitweiler & Co.
Strauss, Joseph Far oil & Co.; J. M. Berk, Berk & Company;
Jack Feinsinger,
Co.
Schafer, Miller & Co.; Joseph Flanagan, John J. O'Kane, Jr. &
Ken
Leibert, Irving L. Feltman, and
Robert E. Eble, all of Mitchell &
Company
28
The Commercial and Financial Chronicle
(2688)
...
Thursday, June 29,1950
Pronounced Huge Success
Leroy Klein, Lebenthal & Co.; Fred J. Rabe, F. J. Rabe & Co.; L. A. Gibbs, Laird,
Bissell & Meeds; Fabyan R. Saxe, Gearhart, Kinnard & Otis, Inc.
H. R.
Soren D. Nielsen, New York HanseaticCorporation;
Philip F. McManus, New York
Hanseatic Corporation
Estabrook & Co.
John F. Crawford, and John H. Stevenson,
Nat Krumholz, Siegel & Co.; Ted Young,
Ward & Company
Schmitt, Pulis, Dowling & Co.; A. P. Morris,
Theodore Young & Co.
|
Sam
Weinberg, S. Weinberg & Co.; Robert M. Topol, Greene and Company; Irving
Company; Samuel D. Mallin, Frank Kiernan & Co.
R. J. Beall, Wellington Fund; John Hawkins, Amott, Baker & Co., Inc.; Harry R.
Amott, Amott, Baker &*Co., Inc.; John S. Reitenbaugh, Goodbody & Co.
Jack Maloy, d'Avigdor Co.; Charles Kearns, Kearns & Williams; J. William Kumm,
Dunne & Co.; J. Arthur Warner, Kearns & Williams
Arthur T. Hamill, Lee Higginson Corporation; Charles H. Dowd, Hodson & Company,
Allen Greene, Greene and
Inc.; Stan Roggenburg, Roggenburg & Co.; Joseph Monahan, J. A. Hogle & Co.
Volume 171
Number 4920
<
.
.
.
The Commercial and Financial Chronicle
!
Seligman, Lubetkin
Proposal to Sjieed-Up Collection of ; ~
V " Corporate Income Taxes Termed Unsound
NYSE Member firm
Lloyd E. Lubetkin, a member
of the New York Stock
Chicago & St. Louis
Otto
and
man
Jensen
formation
cloud
man,
Lubet¬
kin
Co., 41
picture.
First there
of
partner¬
ship of Selig¬
in the coal
the deterioration
was
the
&
situation and the long strike in that industry. Loss of confidence
in the stocks of the major coal carriers, which not so long ago
Broad
Street,
ranked
New
York
the prime
as
investments in the field, produced
severe
a
City, members
psychological shock. Unfavorable weather conditions in the Pacific
Northwest and
the Great Lakes resulted in a re¬
duction in the Great Northern dividend, another long-time invest¬
ment favorite.
This action halted what had appeared as a most
promising advance in rail equities.
exerted
Exchange. The
former firm of
Seligman, Lu¬
strikes within the industry itself have
further sobering influence on the investing and specu¬
a
all of these deterring market factors,
railroad stocks were hard hit by the wave of selling that hit the
market early this week, on the weekend news from Korea. Based
on Dow, Jones
averages the rail stocks did not do much worse
percentagewise than did the industrial stocks. Nevertheless, alrthe
end of the first day of selling the average had broken through to
a
new
low for the year, the lowest level reached since last
On top
What is
particularly discouraging is that the wave of selling,
stemming from causes totally outside the strength or weaknesses
of the industry, came at a time when it was hoped that excellent
May earnings comparisons would provide a powerful* stimulus on
the upside. These earnings began to appear in the^press late last
those
and
shown
improvement
have
released
far
so
almost
In
over a year ago.
some
without
exception
instances the
is quite generally
expected, that the rail market will begin to give a more realistic
appraisal of the current and prospective earnings levels.
opments has subsided, it
r
is to
be hoped, and
has been moving
One stock that
particularly erratically this
has been the New York, Chicago & St. Louis^(Nickel Plate)
Not
long ago it was selling at 111, the highest level
reached since the depression of the early 1930s and just about
common.
double last
with
On Monday it dropped seven points to 97,
a new low for the year.
One thing that has affected this stock has
been the recurring hopes and rumors that some "plan was being
devised to eliminate the accumulated dividends of $68.50 a share
year's low.
the road's 6%
preferred stock.
The
the
company
hold out little hope that
accumulations
be satisfied
would
like amount of
a new
through issuance to holders of
preferred. Previous proposals to
pay off at least part of the arrears in common or
preferred had been dropped. However, the I.C.C.,
a
addition
in
and
will
securities to satisfy preferred or contingent interest arrears.
Therefore, it is believed that Nickel Plate would not be allowed
to consummate any similar plan.
Rather, the more protracted
new
of
gradual elimination of
through cash
arrears
pay¬
of orders and
trading
Given the
road is
an
incentive, it is believed that the management could
fairly rapidly through cash payments. The
excellent operation, its status has been improved mate¬
arrears
rially by lease of Wheeling & Lake Erie late last year, earnings
are high, and prospects are good.
One of the strongest aspects of
the picture, and an important contributory factor in the high earn¬
ing power, is the inherent efficiency of the property. It is con¬
sistently
the
among
leaders of
the
industry
in point of
profit
will
firm
the
Mr.
located
be
May showed a gratifying improvement in earnings, more than
able
the
to
modest year-to-year
offset earlier
bituminous coal strike.
New York
the
approach $60 a
elimination
of
the
mentioned
As
arrears.
above
common
share. On. a longer-term
basis, granting eventual elimination of the preferred arrears, the
common obviously has considerable appeal.
Totten
At Curb 5 & 20
Brown
won
Outing
of
Brown,
the Curb Ex¬
change members' Five and Twenty
Club golf
trophy by scoring
an
80
the Wheatley Hills Golf Club
over
course
Five
in East Williston, L. I. The
and
annual
fourth
Club held its
golf tournament
Twenty
and
outing with about 175 Curb
Exchange
members
and
guests
present. V^..',:;v
/;/''
;
Low gross prizes for members
were also won by Joseph Reilly,
last
champion, Van AdriAdriance & Finn, and Mor¬
year's
ance,
timer
Landsberg,
Landsberg &
Co.
B
r
i
c
k
m a n,
Low gross for
the guests went to John Humm.
E.
E.-
Haussler
and
Leonard
tied
among
Winners in Golf Meet
J.
tions
by
from
other
means
sal
five
speed
year
-
in
up
-
subsequent firms to date.
former President and
the
Director of the Ritz Tower Hotel
and former officer and Director of
Midtown Enterprises
Warwick
the
owned
time
which at
one
Hotel
the
net
a
72s,
for
and
match-off.
Mr.
net
score
members
Haussler
with
won
The award for few¬
est putts was won by C. V. Quayle
and
the hole-in-one
to
is
George
DeMartini.
Walter
on
Ziegfeld Theatre -and
properties. At the
other
several
Majestic
72nd
to
71st
the
of
director
a
Mr.
32-story
twin-
Apartments
Streets
<•*
- -
'
taxes
is
a
tures
and
un¬
main
otherwise
ap¬
awarded
trophy and prizes
at
a
dinner
in
the
were
eve¬
ning at which James J. Hopkins,
President of the Five and Twenty
Club,
presided.
Among
those
present were Mortimer Landsberg,
Curb
chairman;
Truslow,
Francis
President
Adams
the
of
Ex¬
change, and Col. William A. Lockwood,
general
Exchange.
counsel
-.'v
for
the
required
if
budget
revenue
at
expendi¬
collections
re¬
present levels.
Mr. Austin also stated that the
proach to the
would
measure
problem of
effect substantial
changes in the financing arrange¬
ments both of corporations and of
ex¬
re¬
tax
device, he said,
postponement of the
a
basically
the government.
ductions.
Austin
Maurice
Speaking at
Sheridan, Brown Head
the Society's 17th Annual
Confer-'
Mr. Austin, who is currently
ence,
a
Curb Nom. Comm.
Vice-President of the American
Institute
the
of
termed
borrowing
Accountants,
"merely
proposal
from the future."
Jerome
,
r
;
dates
are
on
which
corporate
Nominating Committee of
Curb Exchange, it
is announced.
Joseph H. Brpwn
was
the
the
same
will
drop
appointed Vice-chairman of
Committee,
members of the
will have the effect
of increasing revenues
an
esti¬
mated $800 million each year from
1951 to 1955.
"However," he ex¬
plained, "after that date, annual
collections
Both are regplar
Curb Exchange.
WitV Da vies & Mejia
^
(Special to The Financial Chronicle)
SAN
by
FRANCISCO,
Cal.
—
Jo¬
$800 million."
"As a fiscal
tin
deficit conditions
regarded
as
■'
Friedman
attended
Finance
of
School
:
the
He
Burma.
and
India
Officer
Commanding
Offer of
Exchange to Terminate
July 26, 1950
was
332nd
of
and
Squad, in the last war,
awarded the Bronze Star
was
He
Medal.
solidated
is
Gas
a
Con¬
director of
Utilities
Berwin Paper and
Corp.
To Holders of Atlantic Coast Line Railroad
First Consolidated
and
Manufacturing
The
Board
of
Corp.
Otto Jensen started his business
in Wall Street in
career
is
1912.
He
member of American Legion,
a
Order
it-
Company
Com¬
and
Class of 1924, and served
Major with the 10th Air Force
as a
and
Royal
Arca¬
its Offer of
Company
Mortgage 4% Bonds, due July I, 1952:
Directors
of
Atlantic
Company has set July 26, 1950
as
Coast
Line
Exchange, dated April 10, 1950,
modified
as
solidated
Mortgage 4%
Bonds, due July
(bearing interest at the rate of 4'/2%
1,
1952. for
per annum
Letters of
Transmittal from bondholders who have not yet assented to
the Offer will be received
Piper, Jaffray & Hopwood of
Minneapolis, members of the New
York Stock Exchange, will admit
Colgate V. Mann, a member of
Exchange, to partnership on
Mr.
Mann,
who has re¬
cently been active as an individ¬
ual floor broker and prior thereto
a
partner in Schirmer, Ather-
ton &
Co., makes his headquarters
was
in New York City.
by the Agent named below
on
will not be accepted
David E. Graham to Be
Gruss & Co. Partner
David E. Graham will become a
Broad¬
way, New York City, members of
the New York Stock Exchange, on
July 6th.
!
(Special to The Financial Chronicle)
C.
Colo.
—
Perry has been added to the staff
of
Investment Service Corpora¬
Building.
j
thereafter.
The Board of Directors of the
Company
on
May 18, 1950 declared
qn May 26, 1950, the
the Modified Offer of
Exchange operative, and
Interstate
Commission
Commerce
Series A Bonds. The
authorized
the
issuance
of
the
General
Mortgage was executed on June 2,
1950, and the Series A Bonds are now being delivered in exchange'
new
for Bonds due 1952.
As of June 21, 1950, assents had been received from over 950
bondholders with aggregate holdings in excess of $24,900,000
prin¬
cipal amount of Bonds due 195,2
„
to
.
......
,
.
the Offer and who have not
presented their Bonds for exchange and bondholders who now wish
to accept the Offer are
requested to forward their Bonds, accom¬
panied by a Letter of Transmittal, to City Bank Farmers Trust
Company, Agent, Corporate Trust Department, 22 William Street,
New York 15, N. Y.
.
'j
Copies of the Letter of Transmittal ancjl the Modified Offer of
may be obtained at the office of the Company, 71 Broadway,
Exchange
New York
6, N. Y.; at City Bank Farmers Trust Company, Corporate
Department, 22 William Street, New York 15, N. Y.; and at
Morgan Stanley & Co., 2 Wall Street, New Ybrk 5, N. Y.
ATLANTIC
■'
George
tion, Security
to
Trust
With Inv. Service Corp.
DENVER,
up
Wednesday, July 26, 1950 but
Bondholders who have assented
partner in Gruss & Co., 115
new
from March
or
3:00 P.M., New York time,
1.
on
Mortgage 4% Bonds. Series A, due March 1, 1980
1, 1950 to September 1, 1952). Letters of Assent
Piper, Jaffray Co.
Railroad
the TERMINATION DATE of
May 12, 1950, providing for the exchange of its First Con¬
General
num.
R.
Ex¬
Atlantic Coast Line Railroad
merce,
in
Stock
,
University of Pennsylvania Whar¬
ton
Francisco
changes.
re¬
1931 and
prior to its dissolution was Presi¬
and .Director of Seligman,
Charles
Since
San
and
properly be
1
dent
Lubetkin & Co. Inc.
can
temporary.
COAST
LINE
RAILROAD
COMPANY
C. McD. Davis, President
„
New York. N. Y..
June 22. 1950
^
been
the New York
earlier governmental fis¬
revenue
has
elected
due, Mr. Austin pointed out,
cases will bring payments
an
Sheridan
F.
appointed Chairman of the newly
taxes
associ¬
Seligman has been
ated with the firm since
at
Central
and
the par three holes.
The golf
merely
be
sound
'
.
tion
contest went
Kimm, Jr., Kimm & Co., took the
prize for the lowest total score
other
seph P. Ferriter has joined the
expedient, Mr. Aus¬ st£ff of Davies & Mejia, Russ
added, "this measure can be
Bldg., members of the New York
present time he is President and
justified only if present Federal
the
and
July
low
Curb
by
or
be the sounder'ap¬
day when additional revenues will
cal year, and
is
increases,
revenue
sources
corpora
1929 and has been connected with
the
real
would
The acceleration
collection of
into
all
any
proach."
propo¬
for
the
in most
He
on
mittee
change, started his business career
Stroock & Co. in
the
Harold'
and
with Lubetkin,
year
share earnings are expected to top $50 a
Kiernan & Co.
Ex¬
earnings on the preferred should at least
share which would allow substantial progress to¬
For the full
ward
mem¬
Stock
considerable
Com¬
Means
So¬
State
York
The six months forward shift of
declines attribut¬
For the five months through
May net income amounted to $8,077,533 ($22.40 per preferred
share) compared with combined net income of $7,902,723 a year
ago.
41
at
Lubetkin, who is the
of
ber
the New
Offices of
Street.
Broad
Masonic
margins.
sufficient to
on
York Stock Exchange.
sheds
Ways
New
Airdrome
ments is expected.
eliminate the
its
history
doubt
ciety of Certified Public Account¬
ants, the House
cise
broaden
"merely
as
assumption that
present budgetary conditions are
temporary, it seems clear that
balancing the excise tax reduc¬
elect of the
balancing
activities to include the execution
convertible
in its Maine
Katy decisions, has not looked kindly on the issuance
Central and
alternative
since
cent
According to Maurice Austin of
York, First Vice-President¬
New
will continue the over-the-counter
any
plan is in the offing. It is known that serious consideration was
being given earlier this year to a proposal whereby the preferred
of
busi¬
firm, the partners said,
new
Park West.
•
...
close to
Sources
a
has
in
1929, has been terminated.
share in 1950.
the stock
pre¬
ness
tower
in direct line to benefit
mon
its
decessors
Such a step would put the com¬
from, and participate in, current ex¬
ceptionally high earnings—the stock should earn more than $50 a
on
Co.
been
Lloyd E. Lubetkin
year-
to-year earnings gains have been of really sizable proportions.
Qnce the selling brought about by nervousness over foreign devel¬
year
&
which
Inc.,
business of the former corporation
'
week
betkin
of
December.
New
Stock
York
Labor difficulties and
lating public.
the
of
late opening of
six-month
a
borrowing from the future."
announce
^Bulls on railroad securities have been having a pretty sorry
time of it this year. Every time there appeared to be good reasons
for expecting a sharp price advance something has come along to
the
Maurice Austin describes proposal in Congress for
forward shift of dates on which taxes are due,
Exchange,
Charles Friedman, Alvin W. Selig¬
New York,
(2689)- 29
i
•„
The Ccrmmer(nni and Frruincial Chronicte-. .:t
SO-(2690)::
profitrare being made by fewer companies.
v
*
.
,
This Week—Bank Stocks
"
;
With international relations in a
^
is
"
precarious state of balance,
that
possible
dominant factor in the determination of
after the third
Hultgren
in
On
expected.'.,//, '
the
whole,
a
"
'
'
not receive
the banks did
continued
porations
loans
A large part
Even the aggregate, however, increased
less/rapidly after 1946
than before.
Total
period
loans
are
a
small
a
also
expected
high
so
show
to
While the average
as
of
amount
the
eal
bank loans
This in turn
a large scale.
on
The run-off of loans began in March and continued
the
past few weeks there has been
While
balance
Leen
there
has
increase
an
was
variation
in
interest
they have been fairly steady. Changes in earnings have
a
reflection of changes in the volume of funds em¬
change,
no
as
rates
£ame
of
tion
realized
from
increased
efficiencies.
yet, in FDIC assessments and
as
a
changes will be
there
As
as
taxes
ago, the effect upon earnings
different than last year.
•
year
no
has
Long
Yet there
1 •
of operations.
the
number
following
before
contrac-
however, the
ceded
(Special
tapecmi
to
The Financial chronicle)
ihe financial Chronicle)
MLWAUKEE,
w
SS
•fnrrruiriv
x
—
William
the
age
Mr.
ness.
„
.
,
Bainbridge
..
mer
long ill-
was
no
consistent lead
to
,f" and C-v j./-'
Bankers
to
the
Government in
Kenya Colony and Uganda
in Waco,
Tex.V.
where "he / re■
> *
mairied
1900, when lie
hands.
Companies
At
:
the business
cycle the fortunes of some corn¬
every
stage of
Pardes> temporarily at least, ran
L
.
^.T1Je q.Va?e.r by Quarter data
that
dicate
the
in
Lewine
3"; if. ^-3; ■
Mr. Lewine is
a
3/'!
'^3
member of the
Exchange, Mid¬
New York
Stock
west Stock
Exchange, and the De¬
troit and Boston Stock Exchanges,
as
well
as
of the New York, New
Orleans arid Liverpool Cotton
quarter
Ex-
and
business
firms had
corresponding turn in their net
Exchange, and Commodity ex
change, Inc., and has served oil
tbe governing boards of the New
About one-fifth did not
York Cotton Exchange, New York
Coffee and Sugar ^Exchange and
In
the
case
turn except
no
income'.
by
1937 and
one
by
followed the latter by
one
exnan-
of
1933,
every
some
bave arW turn corresponding to
busies; pea^andal-
one-third
most
—
ness
the
missed
as
well as the Association of Stock
„
busi-
—-
—
trough in 1927.
nUnnrr
Sometimes Excriange tirms.
Last night Mr. Lewine's partcompany grew in both contraction ners gave him a surprise cocktail
this was because the profits of a
and expansion, sometimes because and dinner party at the Harmonie
Profits declined in both.
Club.
Among the distinguished
guests Present were eld,er states-
Forecasting Difficult
man
Bernard M. Baruch, former
Mr. Hultgren examines at length Ambassador to the Hague; Herthe possibility of using his ap- man B. Baruch, C. C. Anderson,
proach
for
conditions.
forecasting
He
business
that
concludes
changes in the percentage of companies with rising profits do not
forecast
lorecasi
business
Dusmess
conditions
conaitions
Allied
director
of
min
Namm,
H.
BenjaCharles A.
Stores;
and
Cannon.
with
wun
■
4
York Stock
Exchaiifo: v.
ilember# NeoTwk Curb Exchange-
BWriDWWi NEW- T6KK 5,
N. Tr
Telephone." BArciay 7-3tm
BeH Teietype^NY l-1248-4»
$*,. "A. Glbbe. Manager Trading Dept J
Specialists in Bank Stacks
«
'
yield
profits
j '
Branches In India, Burma. Ceylon, Xenyn
Colony, Kericho, Kenya, and Aden
■,*?
and Zanzibar
;;;
...
.j-
£4,000^00W
£2,000,000
/ Reserve Fund....
£2^00,000
«
k
Tho Be nt conducts every descripaoo of v
banklnfp and- exchange buslneaa
f_ ' "
•
.
i
• t
Trusteeships and Executorship* i
increasing
by
Mr. Hultgren says the
of events
■
r*-
«.
a
less
sequence
factor
-
"Further
jn
research,— too,
an explanation of
the length of lead.
the
value
'.J.,
may
variations
If it does,
forecasting
or-' identifying
of data on the distribution
the staff of First California Cornpany, Central Bank.Bldg.
,
Hamilton Managem t Adds
/
(Special to The FiNANCiAt.*CBaoNtcLE)
DENVER,
r
(
Colo.-LJa^k B. Gusa
»°™ard,E'
■MW1UPI?..Mana&
of changes in profits among com-_'
is about what the late panies will be
enhanced.-"v*-/•'•v'-'- •
C. Mitchell, former DirecThere was no mnsistent differ-"
^
There was no consistent differ--- f 'AA/itK" Walt#»rvT J;
Researdi..of the National)- ence: in the
experience of com^L "': j>;;t O
^Bureau, .had surmised in 1913, in panies which primarily-Varfe-ij*0-u
his book on "Business Cycles." >
ducers of durable goods anri that ; - PORTLAND,> MaineT^Raul-
•Wesley
I.
-
Paid-up- Capital
with
followed
....
*
Subscribed Capital.
was
rapid decline in the aggregate
profits of all companies. ;
' " "
...
..
^
■■■■■
v, --
says.
of,companies
>
*
might nevertheless weigh
information of this character together with other information," he
business contraction, the trough in the percentage
L:
\ -■
Head Office: '26, Bisbopsfato,
.London, E. C.,i -
Mcabfrs
-
\;'
.
four periods of
.
of INDIA. LIMITED
.
,
-
Jerome
aggregate profits of all companies
studied. Similarly, in three of the
laird, Bissell & Meeds
r>
business
pre-
period of less rapid growth in the
•
_
e
f
; INSURANCE
^STOCKS
•1»
in
in 1921
In three of four business
Milwaukee office. Halsey & Co.
NATIONAL BANE
1»
the
L
r.
wine's ear 1 y /
life was spent
Tvri
s
*
year
of corporate profits, as
for other reasons, Mr. *orx ana se- - ; ;
'J;
Hultgren reports, the percent- cured a position with the firm he
age
of companies
with
rising now heads.
;
profits fluctuated most irregularly '; ln June,- 1915, Mr. Lewine bethrough 1942. It was fairly stable, came a partner in H. Hentz & Co.
around 50 to 55%/ in the period On May 1, 1918, the firm which
of high war activity from early was very actively identified with
1943 to early 1945/ It fell a little practically all of the commodity
1° the middle quarters of 1945, be- futures markets which were' in
fore climbing to its postwar peak existence- at -that timS, arid Baruch
in 1946.
Bros., who were principally in the
Stock Exchange business, joined
Always Some Exceptional
The turn-
quarter in 1929.
''HI.
s
ac-
two quarters in 1932-33. The for-
,
prior
50th
association
RCOmte^Sr cia!ln Dis I'et.i''ement was a Pa,rtner of Sions which took place between "respectable precision."
precision."
With First California
"But people who are obliged to
S>Bainbridge & Ryan and had pre- 1920 and 1938, the peak in the
"But people who are obliged to
(Sp«"" t0 T"E
■
^ W3S X}0^
connected with the percentage of companies with make decisions in which the prosOAKLAND, Cal.—Sebastian E.
2
?f.on, National City Company and N.W. increasing profits ushered in a pective course of business is a Reinhard, Jr., has been added to
mnnoaot.
en*
.
W.'&f* »5-
that
quarter
BainbridSe died
a
of 68 after
celebrating
his
M
par-
Probably because of conversion
war production and changes in
to
on
15, 1856)
"respectable
wi»?UBohJrt
iwv^ron
Wis.
at
Bainbridge
...
is
Wartime
num-
ing point in aggregate profits
T
Nov.
with that firm.
Story Different in
The
con¬
economic
cided in five instances.
L. M.
established
*
and no consistent lag between the
turning point in aggregate profits
and the turning point in business
activity as a whole. They coin-
•
Combining these various factors, it is expected that earnings
statements next week will reflect a gradually improving level
William B. MurpVWith
Robert W. Baird & Co.
at
number
ber of companies with growing
profits again begins to increase."
been
from such
:
the
tlvity r^ve^
some
at the
are
the
ine
^
The fall in
stages
ployed.
Expenses for most banks have been well controlled and
activity
rise
nstv
to
10
tinues to the end of the expansion
in business and on into the earlier
on
more
benefit
Profit
(hav
been
..
in the
rates,
brokerage
houses
ing
of
Counter to the main stream.
economic
begins
uegms
™
ish.
some
Street, New York City, one of the
old-line commodity and security
with Orleans ana Liverpool umon x.
numper f
.
.
H
H
^ thM
p
f 1q2Q_
changes, New York Coffee and
of
companies
with
improving
west rises during tne great iyzy
«
* F'f>han?p Commodity Exprofits is rising ana continues to *937 depression, 26% of the cor- Sugai Exchange, Lommoaiiy lx
pionis is rising and continues to
orat5
h d
• :
rnfits
in the
change, Inc.; New York Cocoa
rise
during the earlier stages of porauons naa rising protits. in tne
<5 »
>
Produce
business expansion " he savs
quarter of the 1920's most favor- Exchange, lnCf New Yorx rroauce
S
able to nrofits 23% had diminish- Exchange, the Chicago Board-of
Long before the decline in eco- fDie 10 Proills> 3 /o naa aiminisn- T
® ' ..
rhi
Mereantile
nomic activitv at large, nowever, ln§ earnings. When minor fluctu- £rade' and tbe V" cag0 Mercanll!e
however
dciivny at large
di<;rPfJarriod
Pvrontionc
Exchange. He is a former Presithe number of companies with imbitstillnot' inf rlauem dent of the old Cnmmnditv Silk
New York
proving profits begins to dimin- ar? fewer out still not infrequent. „
,
H
Fxlarge
ldige
weekly reporting member banks in New
been
that
suggests
sequence
"When
.:
into the
reported
1938
to
Mr. Hultgren believes.
third quarter. This year there has been only a small contraction
ia loan volume due to seasonal considerations.
In fact during
loan volume by the 22
York City.
the
of
of events is typipeacetime business cycles,
a
of
~
liquidation.
inventory
repayment of
experience
profit
1920
such
in 1949, the volume at the end of
comparison. V
during most of the period the banks were going
rapid liquidation of loans. The decline in business
which began around the end of 1948 was accompanied by a con¬
in
The
from
a
reflected
tion sold, pressure of costs against
prices, or both."
companies studied in the 18 years
improvement
for the six-months
some
Last .year
siderable
>
panies; Late in Boom
such as tax-exempt
the period should make a favorable
through
.
Larger Profits for Fewer Com¬
;
year ago.
not be
may
'
report
Industrial Corporations."
/'/,
Z
the level of
over
The
v
of the additional funds have been used to pur¬
also been
more pro¬
profits of some corporations may
reflect early declines in produc-
the
on
Jerome Lewine, the senior part¬
of H. Hentz & Co., 60 Beaver
ner
ing earnings of the growing group taxation
companies on the downgrade.. well as
«'
;
icicrease in the holdings of other securities
municipals.
remained
of
the benefit from this
Government securities/ There has
S.
that
cal Diversities in the Fortunes of
a
investments.
of individual
wartime boom, the data indicated,
was markedly irregular.
larger volume of funds avail¬
and
sales
the
to
containing
these
findings is published by the "Nation Bureau under the title Cycli-
rqeant that the banks have had
the
The early declines in the
history of corporate
ticipation in profits during
upgrade more than offset the fall-
combination
chase U.
higher
preceding
level of deposits than in 1949.
of lower reserves and higher deposits has
average
for
had
the
rising earnings
diminishing group of cor-
of the
in
Aggregate profits
grow until
late in
because
1948
_
able
in
than
com-
state-
high level.
mer
Deposits also have shown a slight increase over a year ago.
While the change has not been large, most banks should show a
The
reach
The scattering of turning
enterprises is doubtless
quarter. By the end of 1946 the
percentage was down to around
50, and it never recovered its for¬
action until the last half,
higher
Hultgren
quarterly
studied
were
I
r
H. Hentz & Go.
expansion the
industries
some
nounced.
whose
ments
While they were lowered again later in the year to the
level,
points
Thor
the
reports, 70% of the 341
profits
deposits.
present
of
?
research bureau
Moody's Investors
Lewine 50 Years With
We
increases.
peaks at various early dates, then
panies
and
Service.
decline.
quarter,
"
tively.
sales
the
that
In
During most of the same period last year
demand deposits required 26% reserve and time deposits 7%%.
It was not until the first part of May of a year ago that the Fed¬
eral Reserve reduced the requirements to 24% and 7% respec¬
time
for
unit
per
know that in every
made
by
Chronicle
early
an
reau.
V\
Reserve requirements so far this year at Central Reserve City
banks have been maintained at 22% for demand deposits and 5%
,
hand,
National Bu¬
.
*"
-
paper
public
ing are much the same as those that have been in evidence since
the end of last year.
Earning assets are higher than a .year ago
es a result of lower reserve requirements and a small increase in
deposits.-
a
;
other
profit
of
a
anlysis of quarterly
an
decline in the
Re¬
just
'.
'■'>
.3:
:=•. ////■•, 3 v..//.;/ "
primary factors responsible for the better earnings show¬
The
profits of
t
the
in
some instances lower
by a
slight increase in earnings is
in
and
cases
some
-' ings from
,
search reports
with the New York City banking statements to
amount.
^
;
,
physical volume of
goods a company sells will reduce
its aggregate profit even if there
is no change in unit profit and
may reduce the aggregate even if
Economic
and in those banks issuing statements on net
8%-10%
"On
at
staff
Bureau
operating
earnings, the showing should also be relatively favorable.
Of course there will be ipdividual exceptions from the gen¬
eral experience with earnings higher than a year ago by as much
smaller
company.
the National
published within the next few days.
Present expectations are that indicated earnings will be well
maintained in the current six-months period compared with a
as
__
of
the
t-e
year ago
Thor
1946,
:^
',
V .
'
data on profits of individual comprices," Mr. Hultgren points out. panies compiled by the National'
"An early rise in cost per unit of city Bank of New York
(and'
goods sold, unaccompanied by an some
additional .data
compiled
equal or larger rise in the price by Harold Barger) from
profit1
received for it, will, to be sure, and loss statements
reported by
reduce profit per unit and may The
Commercial
and
Financial*
reduce the aggregate
of
quarter
praisal of the possible course of future developments can be made.
In the meantime the interest of bank analysts and investors
will be occupied
...
large increase in profits of
industrial corporations during the
first three postwar years benefited a diminishing percentage of
corporations
political considerations will become a more
market prices of equities.
Under such conditions we would expect an increasing amount
of attention will be devoted to the possible position of different
corporations in the kind of economy that will result from an,y
material change in the present status of our armament program.
The foreign situation is changing rapidly but conditions should
stabilize within a few days at which time a more accurate ap¬
it
.
.
w
The
Thursday, June 29,1950"
^
„
,
.
,
are producers of Berry^
; tio\v associated - with
goods,/ Mr. Hultgren: Walter JyHood Co.; 41^Congress
however;' do not hecessarily_re- repqjrts. Xn some eyelet prbducers Street/ He; was previously wita
fleet a squeeze between costs and- of durables had earlier turns th'ari Carl K^RQsa.^Co.vIoc. i ;-W i
—
■
"The early... declines
the"".profits
of
some
we
find in" , of-those which
companies, .nondurable
jTqlume: 171*1 Number* 4920
&
*4'
*
7v
v
7X7
—
^
•'
~
ft#?, %**•?*' ',*•>;
'J
,(2691)
\\ffi
-v,:v, v
.
v
v"
example rather dhan follow the. French lead, ; Admit--
an
art
.
financial
and
commercial»I
transactions
■Tf Wiild.be maintained more easily in a large number of countries : I eluded throughout the whole
than
".
.
■
>
■
I A Dr. Einzig contends -gold reserve of Bank of France is not^nffil%\r ciently large to enable;French Government to return to gold
n"'-standardassetiupr in' prewar period. Sees, however^ return of
4k*
confidence in franc that will go
-
7. 7
mal
-
long
currency
way
isolated countries.
two
-
Nevertheless, the
reasons ••
''(2)
t.
toward restoring
be exposed to a trade recession in the United
.•
\
conditions.
i
LONDON, ENG.—There has been much talk in recent weeks
the possibility of France returning to the gold standard.
it do not as a rule explain what form of gold
standard they have in mind, but it is safe to assume that they do
not envisage a full gold standard with freeconvertibility of notes into coins. What they
probably envisage is a form of gold bullion
standard under which gold would be freely
;
available
for
international purposes.
The
'
in 1952, and to war scares.
So while it
undoubtedly give widespread moral satisfaction to witness
to.the gold standard by a number of countries, quite
possibly the price paid for that satisfaction would
very heavy in the long run.., - •
.
•
»
-*/■
prove
to
and
frustration.
experience
pedients
Those who suggest
tionist
forecasts
of
return
a
to
that
system
World's Business Leaders Gall for Freer
Resolutions
7 attributable to the wave of optimism caused
7 by the fall in the price of gold in the Paris
market.
There has been de-hoasding on a
.
.
.
of
and
him
business leaders from 24 ing countries are fully armed to
countries,
including the United defend their i n t e r e s t s against
States, met under the auspices of abuses by the investor or his gov-
extensive scale, and, but for official
the price of gold would have fallen
further.
It is widely assumed, therefore,
.
the
f that -confidence, in the franc is sufficiently
international
Cojnihetee in Paris
established to enable the government to go a
of lerhment.-^his
Chamber
on
June
does
of
present-day
restric-
policy spell for him missed
not
market
mean
i3*14;th4t/the
incentives
elbow-room
more
.
,
effort
knows from
the earth's goods than he could if
he were working under the spur
adopted at International Chamber of Commerce
,
Top
buying,
even
,
n,
He
that: bilateral
producing less efficiently less of
removal of quantitative restrictions,
exchangeability of currencies and reduction of tariffs.
"
•
■
.'7
7
free
fairly
'
Currency Convertibility
dislocations to permit
war
en¬
opportunities and relative stagna¬
tion.
He feels himself to bo
meeting in Paris holds Europe has recovered sufficiently from
are
actually
barter,
exchange control, quantitative re¬
strictions, and all the other ex¬
be
about
International Trade and
area
acutely
as
'system7 means in wasted
return
a
realize
can
businessman
con-
gaged in international trade what
the lack of such a 'multilateral*-
States/to the termi-
nation of American aid
would
nor-
Few
the
as
'
•
j
or
7 why the system would be precarious in France would hold good
also in Britain and other European countries. 7. They \ would all.
-
i
one
m
-
1.j 7,
of countries, but between
groups
! v;!t>itedly-.the immediate result tf a retufn- to ;the gold standard by a;;1 all the innumerable
number; of countries would be to strengthen the system which ;■
':■-■'.■■■■. I--::
-34
^
difficult,;for considerations of > ,balance is struck and settlement 7
;7f' Pp. prestige,; not ;to follow the French example; indeed, the British..^are-made, not within eaph pair': f>'7;
'VXW ',r
Govei^ent .is -already^ed ?t$.forestall ^French"
cpot ^even ^betv^iV !" ,
.
.,
ft C7 ^77"' f "
11
r
initiative.
with
expansion
It is therefore for
of
matter
a
and
for
the
greatest
urgency to return to the mobility
and freedom of a multilateral sys-
tern of trade and payments
«/,v
«w
rnn
thii'reton woutd^"he!Site*'
■if
greater
noliov wnmmpn- ttiHpr thf* rights of the investee
.r
policy recommen- mizes the ri^hfe-nf- -+h<* imrocfoA e
dations that might improve world country or the grace social re-, 'Li
lght lmnrove world countrv or the erace social reilexibllity and
adaptebiUty of natural economic
economic conditions.
One of the sponsibility resting on the foreign
iO.
lou Ythout excessive em
Dr. Paul Einzif
Chamber's
contributions
was
a
investor particularly in the undernn
<=t
vertibility.
'
'
•
•
'
'
policy statement on steps to freer developed areas. The ICC repre- L
/
"7 t ri
1:
It is of course obvious that the gold reserve of the Bank of
trade
and
currency
exchange- sents the importer as well as the
p
iFrance is not sufficiently large to enable the government to return
"(4) The time is ripe today, the
ability.
Another one dealt with exporter
of
capital.
Investing
to a gold bullion standard or gold exchange standard, in the pre¬
ICC believes, for a decisive move
the subject of financing interna- abroad is a matter of give-andwar
sense
of the terms.
The French balance of payments in
towards this greater freedom in
tional economic development.
; take,
but it is simply common
relation to hard
•
;
currency
areas
-
Jtictlnof^
is strongly adverse, and France
that if a country needs private capital for its development,
is for it. to remove obstacles
have sufficiently recovered from a»d make the conditions attracthe dislocations
caused by the tive in much the same spirit as a
recent war to permit removal of country
adopts a policy of at-.
The
Marshall Aid
replaced by some other form of dollar aid. From
of view the position of France is substantially the same
that of Britain, .
this point
In one respect,. Jiowever, France is in a very advantageous
There is in France a very substantial unofficial gold
reserve; consisting of the gold hoards of the public. Hoarding of
gold .coins and other forms of gold is very prevalent in France,
+
nnnci^rohin
Trt
* and the
total gold held privately must be very considerable.
In
!; addition,
hundreds of thousands of French citizens have undeclared foreign balances and investments held in Switzerland or
bther hard-currency countries.
In the past, on more than one
7 occasion, a restoration of confidence in the franc was followed by
the wholesale surrender of this privately-held gold and foreign
assets to the authorities.
In the late '20s, for instance, following
Ion M. Poincare's successful efforts to strengthen the franc, there
7 was a spectacular increase in the French gold reserve, and official
French balances in London assumed embarrassingly large propor-
Ij
were
to surrender their gold
If all Frenchmen
and hidden foreign assets the French
position to risk a return to some
*
uncertainty of the prospects after 1952 is in itself
full confidence in the franc. If
no form of American assistance should take the place of Marshall
Aid in two years' time, it is highly doubtful whether the French
sufficient to prevent a return of
gold reserve would be able to stand the drain of the dollar gap.
Above all, the political horizon is full of clouds.
The position
now is substantially the same as it was during the late '30s when
a
everybody assumed that a war with Germany was a mere question
of time.
The name of the potential enemy has changed in the
meantime, but otheyWise the prospects appear to be the same as
they were 12 years ago.
And a major war scare would be suffioff her newly established and precariously
.maintained gold standard.
If the term has any meaning at all, it
means that the franc would be convertible to a sufficient degree
to be major war scares.
*
cient to drive France
exposed to a flight due to war fears. It seems unlikely that
the French gold reserve would have a sufficient safety margin to
enable the government to view such a flight with equanimity.
to be
*
*« A suspension of
the
new
would undermine faith
-
pea ted war
scares must
gold standard as a result from a war scare
in the system, for the possibility of re-
be obvious.
premature French experiment in returning to the gold stand¬
ard might induce other, countries to follow the example.
In
*
A
'
u
J-r
economic de-
veiopment.
: ,
W. R Herod, President International General Electric Co.
undoubtedly the
Regarding the need to Restore
C. D. Jackson, Publisher "For- ;
foreign invest- multilateral trade and payments, -tune'* Magazine^-!
William A. Mitchell, President
ments.
But, although it is true the resolution adopted by the ICC
Central Trust Company of Cin- 7
that
a
substantial
increase
in contained the following:
capital movements is inconceiv"(i) The
prime objective of cinnati.
able without transferability, it is economic policy today should be
equally^ true that transferability
rapid restoration of a
Laurence
would itself be made easier were
there
an
ample flow of funds from
an^
effort is interchangeable and
made to bring about as rapidly
as possible world-wide transferaWhile
ously.
Marks ix> Admit
smoothly working system of 'multilateral' trade and payments over
one country to another
as large an area of the world as
ticularly from creditor to debtor possible, m other words of a vast
areas.
There must therefore be international network in which
action on both planes simultane- goods
and ' services
are
freely
in which
every
a
On July
6th Carl C. Brown wiU
become a partner in Laurence M.
*»•
te
«
AQ
^
XKToU
Street, New
*
York City, members of the New
■it-
York Stock Exchange,
,
-
,
same
investments.
tional
This
*
,
.
bility of currencies, trjiere must of
the
time
be a policy
rhfl same time be a tonolicy o
active encouragement
interna-
4 NIAGARA HUDSON
-
„
-
policy calls for a liberal
interpretation of the definition of
vmrvont ♦rancantinnc' rnntamprf m
'current transactions' contained in
the Bretton Woods Agreements.
cvDirncp
,
this
definition
neverthe¬
be too narrow for
foreign investment purposes, it
may be necessary at an
appro¬
priate moment to consider revis¬
less
prove
to
ing the actual terms of the
ton Woods Agreements.
Bret-
"Secondly, in present-day con¬
ditions, the' prime responsibility
for
encouraging private capital
movements must rest on the cap¬
ital
with
importing
free
rencies,
refuse
it
can
countries.
transferability
Even
of cur¬
private capital will still
to venture abroad unless
be sure of. fair treatment
along the lines of the ICC's pro¬
posed code.
Whatever may have
been the case in the past, today
it
is the
Jo ihc u0yers
and reassurance
and discrimin¬
atory policies; the capital importagainst arbitrary
wcw
vocir
57
' /-
<
•
<, -
0f Common Stock of
Niagara Hudson Power Corporation:
Please
Hudson
take
Notice
pursuant to the Dissolution Plan of Niagara-.
heretofore approved and ordered enforced by an
that
Power Corporation
order of the District Court
of the IJnited States for the. Northern District
of
York, THE OFFER TO EXCHANGE SHARES OF COMMON STOCK
NIAGARA HUDSON POWER CORPORATION FOR COMMON STOCK
NIAGARA MOHAWK POWER CORPORATION WILL EXPIRE OM
New
OF
OF
JULY 5.
1950.
'
j
.
Effective since June 10, 1950
and continuing to the above mentioned expira-
tion date, the exchange offer is on the basis
Mohawk
when
Common
Common
of 78/100 of a share of Niagara
Stock for each share of Niagara Hudson
accompanied by
a
Stock.
Common Stock :
cash payment of 50 cents per share of Niagara Hudson ,
\
7' 17- 77"': .7-l""'7;
•
all holders of Common Stock of Niagara
under date of May 10, 1950. Your stock certificate
and check, together with the Letter of Transmittal properly signed, should be
received by the Exchange Agent, J: P. Morgan & Co. Incorporated, 23 Wall.
Street, New York 8, New York, by July 5, 1950, if you wish to make the
exchange before'the expiration date.
;
•••-•Letters of Transmittal were sent to
Hudson Power Corporation
NIAGARA HUDSON POWER CORPORATION
exporter of capital who
needs protection
9
SYRACUSE 2, NEW YORK
fold
Should
POWER CORPORATION
' 300 ERIE BOULEVARD WEST
two-
'
Quite possibly the pessimists may prove wrong, and there
will be no war for a long time to come.
Even so, there are bound
SjSST °f **
rS■
' 013
o^
cies is at present
a
In any case,
Pcovei There are of course drf-
maior obstacle to
prices and exchange rates. For this reason it does not seem likely
that the French authorities will be able to secure sufficient gold
to enable them to risk a return to the gold standard, unless it
"
!5nTtii
plane,
economic
the
On
ments.
the non-transferability of curren-
7 Aid, and above all political uncertainty will induce the majority
4 of hoarders to retain their hoards irrespective of the trend of gold
limited form of gold standard that it would
hardly deserve that name.
v
If the French Government, emboldened by the manifold evi¬
dence of improvement-in monetary and economic conditions in
France, should risk a return to the gold standard at the present
.stage, the new system would be at the mercy of political and
economic changes.
The" trade boom in the United States, which
has helped France and other Eurooean countries to improve their
It
balance of payments, might come to an end at any moment.
would be rash to play on the assumption that it will continue.
That factor alone makes a return to the gold standard rather risky.
is
again
emphasize from its earlier state-
the first point the ICC must
rates.
Possibly this process may continue.
Nevertheless, high
taxation, economic uncertainty after the termination of Marshall
such
That
transferable.
and
able
'
be
^ ^ econo!nic
.
exchange-
rendes Me made freely
limited form of gold, standard.
would
relations.
nn
7 ' It! remains to be seen, however, whether there will be on the
present occasion de-hoarding on a scale comparable to that wit¬
nessed in the late '20s.
Admittedly, many French holders of gold
I or foreign currencies have been frightened into selling by the
downward trend of the price of gold and of unofficial exchange
v
economic
nan
Government would be well in a
;
international
What might be called 'the recon-
tracting,.-and not repelling,the.ties: and ohsUcles but these
foreign tourist.
;
should not be allowed to prevent
reduction of customs tariffs in the
"These two points are basic to
»ihevitably
immediate future.'?
-7,.-the ICC's whole approach to the resiric^ its xuii enects. ;
.
In its resolution regarding thfe problem
cimonoceto
development
■;
financing of economic develop- tbroMgh international investment.
ment in Europe and elsewhere, There can be■ no sound solution,
the ICC stated:
except against the background of yesented in Paris by the follow- ^
"Thprp
bo ^xnaii«;ibn of a general system of multilateral
: •' '' > in+ornaffrtnaT
thp trade and payments. And equally,
H. J. Heinz II, President H. J.
rimdrlri tnrf^ uniour there can be no sound solution Heinz Company of Pittsburgh and
•
.
sense
quantitative restrictions, free exchangeability of currencies and
1
7 tion/ Conceivably, history might repeat itself.
leaders
,
■position.
—
business
world
estimates
represented at the meeting agreed
that
the
economies
of
Europe
if and to what
iextent it will be
4
^STTn
a
,
depends on Marshall Aid for balancing the gap.
will come to an end in 1952 and nobody knows
i.as
at
way
.
;
arrive
to
towards restoring normal currency
conditions through relaxing exchange control
and through restoring a certain degree of con¬
long
;
7
By Earle J. Machold
Dated; June 26, 1950.
Presidenti
32
The Commercial and Financial Chronicle
(2692)
Milloy President of
N. Y. Municipal Forum
President
as
The
opments
impor¬
completed in short order to meet
requirements either south of the
wealth
border
devel¬
momentous
recent
the
accentuate
tance of Canada's immense
intimate
and
country
political
and
the
and
wealth.
In
Canada
can
a
i
Province
the
achievements
World
during
future
conditions
is
ore
wonder
new
by
ex¬
means
no
in
Ontario
have
and
Saskatchewan
in
made
been
in¬
mineral
Dominion.
the
discoveries
uranium
important
and
copper
deposits have just been located
in the Gaspe Peninsular, in addi¬
tion to valuable extensions of al¬
probably
ready exploited base-metal mines
in Ontario and Quebec.
The re¬
of
recent
intensive pros¬
had progressed from the stage of sults
a
primarily agricultural country pecting amply demonstrate the
to
become
one
of
the
world's almost boundless potentialities for
half
taken
have
•,
would
This
developments
New
dustry experienced an amazing
transformation which under nor¬
mal
the
of
source
the
In
emergency.
of four years Canadian
This
Quebec.
hausts the list of postwar
War
appreciate the extent of the
Canadian economic potential in
any
of
aircraft.
II to
course
commenced
At
century.
a
nations.
industrial
fore hostilities ended hundreds of
brand
area
two-million square mile
fabulous
new
plants were produc¬
ing on such a scale that output
finally had to be curtailed. Ca¬
nadian
production
covered the
entire range of war requirements
from small arms to tanks, war¬
used
the
brought
will
fields
stage.
inroads
con¬
serves
ca u s e
common
the
the
previously
appeared
United ■/ Nation's adequate to fill U. S. iron-ore re¬
for
generations
to
nickel, 32%
of
the
aluminum,, quirements
The necessity to find fresh
20% of the zinc, 10% of the cop¬ come.
94%
of
the
and 75% of the asbestos. As
as
forestry products
were
per,
far
it
concerned
is
difficult
to
has
reserves
acute
normal
of
con¬
even
recently
for
-
become
satisfaction
the
peace-time
demands;
Allied ^Nations in the event of war the need for
and
accessible
sources
of
could have met their require-: new
mdnts for lumber, pulp, and other supply would be imperative.
Al¬
wood products without the vast though U. S. steel interests have
supplies furnished by the Do¬ recently secured important new
ceive
how
„
the
minion.
For
.'."V
future
any
Canada
a
Canada
has
one
of
eminence
need,
in
this
field.
moreover,
more
impaired.
In
be
connection
St.
pre¬
time
In
strategically
seriously
rapidly brought to the
Alberta
and
railroad
of the* production - stage,
Canadian
South-American
Eastern
spec¬
greater
even
time conditions
emergency on the other
hand the Quebec-Labrador fields
could
in
.
become
be
America
South
war
of
case
major oil producers with
promise
than
following the
discoveries
world's
is
would
today is capable of
still more valuable role.
Since the war
tacular
in
reserves
their value in
the
of
playing
of
ore
emergency
tidewater
to
Lawrence
could
the
on
likewise
be
expedited.
Trust
the
held
made in
2583,
Forum
past year.
President,
As
he
ert
T.
v
Veit,
of
Albert
partner
J.
Harold
Northern Trust
the
be
can
little
is
U.S./Canadian
doubt
wartime
would
this
economic
efficient
partnership
reestablished
be
There
achieved,
that
eco¬
immedi¬
Treasurer.
-
-
.
Daniel B.
surpass
her
even
war.
Government
•
During the Week of the interna¬
tional
news
effect
on
ternal
sections
had
the
ket which
little
curiously
external
of the
in¬
and
bond
mar¬
remained inactive and
virtually unchanged. Free funds
were
also steady at 9%%
but
the
corporate - arbitrage
rate
weakened slightly to 153/4%-15%.
Stocks
Goldberg, Senior At¬
American
gis is associated with William
elected
a
to
CANADIAN STOCKS
full
for
elected
was
V///a/////(
one year.
fore
staging
Western
the
A. E. Ames & Co.
a
oils
base-metals
moderate
dropped
industrials
7%
and be¬
news
12
13
rally,
points,
points,
points,
and
the
the
golds 7 points.
incorporated
Wright Thomas
S.
and
Indiana.
M.
Ross
pointed
an
Chemical
of
Assistant
nouncement/made
ny
1-1045
Frank
Wright
Thomas, retired
broker, died June 15 at the
&
Helm.:
to
Spencer Chemical Stk.
Fifty Con gross Street
Boston ft, Df as*.
80.
Mr.
in
1929,
was a former governor of
the
New
Thomas, who retired
York
Stock
Exchange
and former President of the Chi¬
cago Stock
Exchange.
.?ew York,Alumni of
. Mr. Landis was,
many^ years a lecturer onf,
Trust
an--^ls •fraternity,
later
a
,
tration and was formerly Presi-
Vice-Presi-
Forgan Underwrite
this
Problems at the American,
Institute of Banking and was a.
-member-of the Trust Functions"
Prior
ceptance Corporation in the
ing to holders of its common stock
rights to subscribe at $100 per
share
to
85,000 shares of new
4.60% cumulative preferred stock
(par $100) at the rate of .085 share
each
for
held
of
share
of
record
stock
common
June
on
the
staff
Spencer Chemical Co. is offer¬
26, 1950.
The subscription rights expire on
July 3, 1950. The company is also
extending to the holders of the
presently outstanding 5% cumula¬
tive
Mr.
war
of
Ross
was
the: General
Motors
Colonel
in
1945,
,
1947;
in
He
has
be
for redemp¬
called
Glore, Forgan & Co. and
as¬
sociated underwriters.
other cash funds
will
be
together
stock
used
of the
new
thereto
provements
was
ciated
the
handling
elsewhere.
and
area
Chemical
with
Howard
bank's
business
states.
.V
.
'
the
n
in
asso-
dent
various
,
,,
Savings
Connecticut.
,.
attached- to
Midtowrr
was
at
the
for
Staff.
experience
connected
in
an
5
of
xj
•
pletion of a / prilling plant and
storage facilities at the Jayhawk
Works and for the purchase of
President of the New Yo~k
redemption
credit men's group, and
active
in
thevSmall
unexchanged
shares of old preferred stock.
The
ject
new
preferred stock is sub¬
redemption
if
June
30,
redeemed
at
on
$105
or
decreasing
to
the
American
of^the
Committee
President
the
of
$101%
per
It also has the benefit of
a
sinking
fund
commencing
the
whjch
john
Society for
The
same
Savings
at
has been
Business
American
Manhattan
PreJdenU Hilff'r
the Bank
Company
M
also
it
is
that
learned
Traphagen, Chairman of
Board of Trustees of the Bank
York
Fifth
and
Avenue
j\jewark
n
j
iong time friends
L,
.
& , .,
Glazier' attended
--of Mr.
ner."
din- •
the
..
-
4
Likewise, from the "Courant" of
16 we also quote:
''Charies L Allen Executive
yi9e~President
the Aetna<F.ire)jmd subsidiary companies
ai\d Alfred E. Hanbury, realty debuilding
Zuafmeeting
|aXi
on
of
June
contractor
the" Socie^
15
Edward
for
J/'
formed siPPles' Assistant Treasurer, was
vuif" promoted to be Assistant Vice-
tn
Conch/,"c
Kennedy, and Robert W.
former^istant
q
veloper and
Marshall'of
a
on
day he retired), from
aCcount
N-ew
of
of
textile
a
t^ns^Hlrbert^W^ke®
Ap^!nt
Selle
»
paper stated that Mr. Glazier was
guest 0f the officers and trustees
,
Chap-
Institute
Banking, the ,475 Club,
Joseph
3%
administra*tion
his
-
as
1951, and thereafter at
share if redeemed after June 30,
1956.
Mr. Price has served
per
before
grow
$12 million to $130 million under,
Bank of New York City and Wit-.
n~ lian> s> Maude> President of the
W
Howard Savings, Institution at
Banker's Association
to
share
Savings
of
the Society
in deposits from
saw
^
Belding Heminway
Company Inc., from which he resigned
to reenter the
banking
business.
any
both
executive
Charlestown Works, for the com¬
of
Mr.
in
fj ll
President
of
Association
He
june 15
.Executive
cstrfcri
ter
Association
National
Banks
t? ^ce-President and (]inner at the Hartford Club
the
bank s
a5n01v!
be
he
of the
of Mutual Savings Banks and the.
.
..
.
noted in the Hartford "Cour-
ant" of June 16, which further
W. McCall, stated:
handling of
"Mr. Glazier served as Presi-
Vice-President in the
the
of
At
Bank, he will be
company
and
Board
ville
in
with
principally in con¬
acquisition of the
the
-
™gs of Hartford Conn., bringing
to an end 62 years of banking, it
specializing
the banking and textile business;
Proceeds of the sale of the
preferred
of
of
Trustees of the Society for Sav-
been
Batik
will
as
Chairman
that bank's business in the Louis-
„
tion.
A
*
Hartford bankers, has resigned
Vice-
a
*
•/
\
•
Robert C. Glazier, dean of the
enBank of
Louisville, Ky., becoming
President
Lieu-?
a
he
the First National
tered
Ac-
Louis-/of , vthe New-York,
his dis.?■
Bankers Association,
ville district.v Following
charge from the Army as
tenant
the
on
preferred stock (par $10) the
*
*
*
right to exchange their shares for
such portion, if any, of the new
Following a meeting of'the dipreferred stock as is not sub¬ rectors of
the^
of the York,
Manscribed for through the exercise of hattan .Company of New
rights. The exchange offer will
t\/t
u°n vp1? 5 Lawrence C.
expire on July 3, 1950. Any un¬ Marshall,
President,
announced
exchanged shares of old preferred that William G.F./Price had been
Treasurers
f^^ck
ekcted
Assistant
Treasurer
^f^eeome maJag^r
was
S
of
the
Vice-Presidents, bank-s second
bank
cn
fund redemption price is 102 and Frank E. Anderson, John
A
u"" Barry Square when it is opened
nmgham and .Daniel D. Dickey npvi ffll1 ,f
decreases to 100 if redeemed after
July 1,
June
1952.
The initial sinking
to
30, 1958.
Assistant
appdinted Assistant Treasur-
(Special to The Financial Chronicle)
DETROIT,
has
Mich.—John
Pierce
joined the staff of George A.
McDowell
&
*
*
v
*
*
ers.
j,
5i.
Co.,
Buhl
Arthur
5.
Kleeman, President of
Board
Bank
Chairman
Graham,
of
The
of Jersey
First
of
National
City, N. J.,
an-
Colonial^Trust Company of New nounced on June 22 the appointYork,
of
an
the appointment
Tanfield as Vice-
announces
LeRoy
President.
Bldg.,
/ Kelley
the
Joins George McDowell
age
of
Vice-President. t He . had
been elected to the honorary fra-t;
ap-/*"s studies in Business.'Adrainis-,
available
President
bv
r
°
,
been
Bank
Company according to
week
'
.
has
■
NewYork5.N.V.
J10nal
--ternity of Zeta Gamma Sigma for,
Ohio
Walter
.
*
worth 4-2400
Wharton School of the University
of Pennsylvania, with a B.S./in
Science and Economics. He was a
Alpha Phi Rho
ffatermty of which he was Nai
were
Frank
Two Wall Street
of Chemical Bank & Trust Co. of
New York since 1927, died on
J"ne 23-. He was 58 years old.
Landis was a graduate of the
business and Mr. Stur-
dent
Morgan Stanley; Glore,
,
Landis, Trust Officer
in
three-year terms
Brothers
Lehman
prices
impact of the
Edgar B.
Renchard, Vice-President in the
handling of the bank's business
George T. Ragsdale
governors.
governor
the other hand took the
on
former|5 an Assistant Cashier.
Foy, Vice-President in
the handling of the bank's Latin-
Authority, and Rudolph J. Har¬
per
of Fiduciary Counsel, Inc.,
were
Assistant
formerly
were
an,d I?r'rPy"e was
B.
torney with the Port of New York
Ohio River Works and certain im¬
amazing achievements of the last
Corporation
Amos
-
.
that event Canada would be in
to
Pearce.
of
year.
nection with the
position
and Herbert Holden, Jr., Assistant
Cashier.
Mr.
Cutler - and ' Mr.
•„.*
President
New : York
Pyne
formerly Assistant Manager of the
Winthrop S. Curvin Foreign Department, as Assistant
of
Smith,
Barney ^ &
Co. was Vice-President and of John C.
elected Secretary and E. Joseph Sturgis
as
Assistant Secretary.
Scherer of B. J. Van Ingen & Co., Mr. Brennan
is associated with
coming
ately in similar circumstances. In
a
*
of
Bank
on
pointed Vice-Presidehts; Eberi W.
Assistant * Vice-President
because
New York, announces the ap¬
pointment of Peter J. Brennan,
Price has had
nomics
CANADIAN BONDS
*
City
June 27, E. NeWton Cutler,
Jr. and John I. Pearce were ap-
elected Vice-President for the
was
Rockefeller
\
of
Co.,
and
of
here
Helm,
will
ing
supply. Should
necessity arise pipe-lines could be
it
to
H.
The offering is being under¬
written by Morgan Stanley & Co.
complete mesh¬
held
Chemical Bank & Trust Company
X-.
Edward D. McGrew, Vice-Pres¬
ident of The
tional
was
appointment of the
Trust Officer, we
*
i
MilJoy
Co.
Shields &
the
which the almost
sources of
Municipal
of
While mention
issue of June 22, page
our
of
a
typographical slip in the
spelling of Mr. Whitney's name.
succeeds Rob¬
bank's
.
Henry W. Whit-' - At the regular meeting of the
appointed an< Assistant Board of Directors of The Na-
referring
are
at; the
York,
New
Assistant
new
the
of
ities
Center office.
June 20,
experience of World War
II clearly illustrates the ease with
oil
Near
Provincial
on
was
Trust Officer.
Vice-
during
regular meeting of the
of City Bank
Farmers
Company
ney
Mr.
had
President of
stock
The
situated
and
as
the
At
directors
The
re¬
Mesabi iron ranges
of the
had
in
made
be
to
which
the
to
iron-ore
Labrador
enter
production
World War II caused vast
in the
metals
the time when the
nearer
extensive
rich
Canada
of
tributed
*
served
of
joint enterprise of U.S./Camining
interest
has
all war-fronts and
on
field
:
CAPITALIZATIONS
Boston
First
as
Bankers
and
OFFICERS, ETC.
REVISED
/;,*/.<^y;g'
nadian*
and radar equip¬
Canadian explosives were
ment.
Shield.
Laurentian
of
During the past few years also
aircraft,
ships,
Canada's
development in
mining
Be¬
of
dent
the end of the war the Dominion
leading
NEW
place
meeting
Presi¬
-
Milloy
metal, titanium, which is likely to
become indispensable in the con¬
struction of
advanced forms of
aptly fill the role of
the Dominion's record of
on
likewise has just
Vice
Cor p.,
exploit with U. S. assistance
the rich ilmenite deposits in the
Municipal
took
annual
Assistant
An
in
to
potent arsenal of democracy,
It is
necessary
only to look
back
of
the
consolidations
NEW BRANCHES r
the
at
Can¬
fission.
field
ada
its
Common¬
therefore,
essence,
vital impor¬
more
atomic
the
commer¬
British
deposits
pitchblende
assumed
have
and
held
at
The
York
Lawyers Club.
of
other
tance in view of developments
cial relations with both the United
States
1
Lake
Bear
Canadian
dynamic
this
of
centers
Great
the
industrial
expansion.,- The
Dominion
has
also the great advantage of its
proximity to the manufacturing
further
for
Alaska.
in
or
Also since the war the value
readily exploitable natural re¬
sources
and
enormous
capacity
of
28
June
of
New
of
Forum
Thursday, June 29,1950
News About Banks
The election of Albert J. Milloy
By Win JAM J. McKAY
...
T.
Mr.
Assistant
members of the Detroit Stock Ex¬
been with the
change.
1929.
He will
Tanfield, formerly
Vice-President, has
banking house since
continue his activ-
ment of August H. Lages and
Philip J. Leopold as Trust Offi-
of the bank. Mr. Lages joined
the bank in 1935 and in January,
1948
was 1 appointed
Assistant
cers
Trust
Officer.
Mr.
Leopold
in
Volume 171
Number 4920
,
The Commercial and Financial Chronicle
..
1936, after 12 years of trust work
the Guaranty Trust
Company,
York, entered the service of
at
member of the
The Bank
New
the First National Bank of
*
An
the
*
increase
First
*
in
National
michaets, Pa.,
„
the
Bank
of
of
Car-
of June 13 is
as
'.••'A'
The
*
Fenninger
of
June
27
Trust
Co.
luncheon
a
of
announced
was
at
1 of
Vice-Presi¬
as
Provident
Philadelphia
July
on
on
the
at
Union League, given in his honor
by his fellow officers. Associated
with the Provident since
1909, Mr.
Fenninger served for
senior
as
officer
partment.
of
trust
He will continue
member of the board of
de¬
as
a
directors,
to which
he
As to Mr.
Fenninger's banking af¬
filiations he
elected
was
in
Pennsylvania Bankers Association
in
1936-1937;
Trust
Division
Bankers
and
President
of
the
Association
served
of
American
1940-1941;
Chairman
as
ABA
Committee
Trust
Funds from
of
ization
Presidencies
Institute
Mr.
organ¬
American
of
Philadelphia which he helped
organize. Throughout his banking
Mr.
Fenninger has also
active role in civic af¬
an
fairs.
J.
I
;
*
*
White, Jr., of Nor¬
has
been
elected
a
Va.,
Continued
from
*
*
VAY-:
of
Calumet-^National
Hammond,
Illl, Record in g
of June 23, Which
added:
"Formerly Executive Vice-Pres¬
ident, he succeeds th£ late Joseph
E. Meyer.
Mr. Meyer's son, Ed¬
ward,
succeeds
director
his
father
has
and
been
Financial Adviser to
as
been elected
R. J.
*
*
Winninger has been named
Assistant Vice-President in charge
of personnel and bank operations
Lincoln National Bank of Chi¬
at
The
noting this in its issue
of June 17, the Chicago "Journal
of Commerce" reported that V. R.
Allegrini has joined the bank staff
Auditor, the post formerly held
by Mr. Winninger.
as
*
*
*
The
name
of
tional
Bank
&
;Yr>'' v'
Salle,
III.,
the La
Trust
has
Salle
Co.
been
"■
Na¬
of
La
changed
the La Salle National Bank
to
of La
Salle, effective July 1.
"YY-Y'
v;yY'
The
=5=
•*
plans
*s*
heretofore
market
continues
the
on
with
defensive,
outright selling. Prices
with
The market is
buyers
cautious.
some
decline
has
small
amounts and
seems to
on
scale basis.
a
Bank
While
referred
National
Bank
in
Texas, from $7,500,000 to $12,000,000
were
the
stockholders.
our
ratified
of
issue
item
in
June
by
8, page 2377,
likewise be in¬
$12,000,000;
the
12
June
surplus will
to
on
As indicated in
matter
a
further
appeared
in
these columns June 15, page 2496.
picture.
cial
continued to recede
they have been
on the down side,
as
The
they too went the way of all flesh. The short-term issues firmed
under sponsorship of the Central Banks.
A somewhat faster rate of decline in prices of
long treasuries,
the ineligibles, has created a defi¬
this time the
eligibles as well as
nitely cautious attitude in the government market. Volume has
pick-up but is still not to be classified as heavy. Buyers are not
showing their hand, which means that bids are small and largely
of the scale variety.
The feeling seems to be "let's see how far
this decline is
going to go." Federal started all this and they are
supposed to have the situation under control. Nonetheless, if insti¬
tutions should continue to liquidate treasuries,
especially the longs,
in order to acquire higher-income
nongovernment
obligations, the
Central Banks may have a bear by the tail. Also it is
pointed out,
those that are interested in acquiring long-term governments are
not of the "hero variety" and
they are quite willing to let the
market make a bottom, before more than scale
buy orders are
entered.
How Low Can the
Taps Go?
Selling of the taps has been rather general, with a large life
company, trust and pension funds and municipalities
letting out these securities, so as to use the proceeds for other
The insurance company, trust and pension funds were
liquidators because they were acquiring mortgages or corporate
The buyers were other life insurance
companies, mainly
small mid-Western institutions, fire and
casualty companies, and
other pension funds and union funds.'
However, the continuous
decline in quotations of the tap bonds is beginning to make buyers
purposes.
than
a
cautious, and they are not
aggressive in their acquisitions now as they were in the recent
Should this feeling be expanded, and institutions become
sizable sellers of treasuries, in order to take on higherincome nongovernment obligations, who will be the buyers of the
ineligibles that
in lieu of the past
tense, we can appreciate the great fundamental
changes that have occurred in the Exchange's status.
Past
Are
An
extent
Speculative
Foibles
Really
Extinct?
interesting question posed for sophisticates is to what
speculators' past foibles have continued on to the present.
One of these is the "power of the tape," that is,
the ticker.
After citing former Stock Exchange
the influence of
President Sim¬
mons' fastening of major blame for the 1929 crash on the public's
miscomprehension of the investment trusts' operations, Mr. Neill
observes: "We might sympathize with Mr. Simmons for his regret
that wider publicity did not exist concerning investment trusts if
it
not
were
1929
did
little
rose
for the fact that
bother
not
the public in the
latter months
of
its
buzzing, ticker-symbol head about such
as 'assets and
earnings.'
If a symbol on the tape
in price that symbol was bought and who cared what it repre¬
matters
sented?"
To which
author adds the following very wise commentary
our
it would have to be Federal, but the Central Banks
sellers to themselves because they want to keep the credit
base from expanding.
How far and how sharply will prices be
allowed to decline, under outside pressure, before there is
in
policy?
completely abstaining from, the be¬
havior of the 1920s. Today's published volume figures may
per¬
haps be regarded as the counterpart of the old-time ticker as an
instrument
for
issues.
.
drawing
1
.
'
:
the
public's
participation
into
specific
The
Industry Mania
important
instance
where
more
likely
exists
speculative
Mr. Neill traces in interesting
detail the craze for speculation in the nation's new railway mile¬
age of the 1860s.
The query coming to the present-day reader's
to
be
repeated
than
discarded,
manias for particular industries.
mind is whether the
same proclivity with excesses is in the process
of being repeated in the current speculation in television shares?
There are several other items touched on which are still open
issues.
For
example,
market
selectivity was all-important even
in the 1920s.
Mr. Neill, giving a table for the prices of
leading
shares in 1923, 1929 and 1932; shows the great importance of
the what
over
the when
even
government
during that all-time record market
boom and crash.
Again, we must ponder whether the "New Era" psychology of
the 1920s, which excused price earnings multiples of 200, may
lines.
full
is
of
questions
with
the
decline, the
The general
changes
in
,
very
feeling
are
made
important unknowns
due
to
selling.
some
are
position to halt
a
when, and where.
seems to be the market will go lower (unless
the
This
war
fear)
keeps
and
pressure
this
in
prices
on
government market
is
summer
profitable
reading!
as
well
as
easy
peacetime
(?)
Co.,
and
member
of
the U.S. Atom¬
ic
Energy
Commission.
Mr.
Strauss
Lewis
his
will make
Rockefeller
the
L.
Strausn
with
office
Rockefeller
brothers
Plaza.
He
30
at
will
con¬
tinue various personal and
public
including business di¬
rectorships and his activities as
interests,
president of the Institute for Ad¬
Studies, Princeton, N. J.,
as
trustee of Hampton Institute.
Memorial
Allied
Opera
for
Center
Cancer
and
the Metropolitan
Diseases,
Association,
Congregation
Emanu-El and other institutions..
In
World
was a
II
War
Mr.
Strauss
Rear Admiral in the United
States
In
Navy.
1917-19
he
was
secretary to Herbert Hoover.
The
Rockefeller
brothers, and
Mrs. Abby Rockefel¬
their sister,
ler Pardee, are associated
Brothers
Rockefeller
as
through
an
in¬
vestment
organization and in va¬
research
and
development
projects.
The brothers
John D. Rock¬
are
efeller, 3rd, Nelson A. Rockefel¬
ler, Laurance S. Rockefeller, Winthrop
Rockefeller
and
Rockefeller.
David
,Y
,,
Hanrahan Co. Adds
ness)
WORCESTER,
J.
Bagdis
is
now
Mass.—Bernard
affiliated
with
I Hanrahan & Co., 332 Main Street,
members of the Boston Stock Ex¬
change.
Y
I/'"'
U. s.
on
the run,
but
to help the refunding operation.
With this out of the
TREASURY
way
★
going to happen to the shorts?
near-term
issues
to
increase
pressure
on
the money markets?
and
in this way put greater
★
BILLS
What about the Treasury and
deficit financing which must be done one of these days?
ing to reports, the authorities
★
Will Federal allow yields
still at <Js and 7s
are
Accord¬
over
money
CERTIFICATES
NOTES
rates, and the Treasury has no greater love now for higher interest
rates than
it had in the past.
Latent Demand for Bank
The longer
bination of
eligibles
BONDS
How will this be worked out?
were
put
on
Eligibles
the skids due to the
larger offerings and smaller bids.
com¬
When these bonds
showed up in the market and bids were hit, buyers rushed to the
sidelines.
There
is
a
sizable
securities, but it won't be
a
potential demand
niteness in the whole picture.
has been larger
bank
very
than
was
around
real demand until there is
the
issues has been
rather
more
are
in the
these
defi-
Volume has not been heavy but it
case
here recently.
And that is not
much either because the volume in the
the 1967/72s into the Vies
for
more
light for
some
time.
higher-income
Switches from
less than
offing.
a
four-point basis
are
& Co.
being
Savings banks, trust companies
and insurance companies have been
York
Aubrey G. Lanston
INCORPORATED
on
sellers of the 1956/58s.
New
,
offers
and
a
without
the short end has been protected (despite some intermittent weak¬
made and
book
in
Loeb,
itself will
Short-End Market Protected
v
The long end of the
Of unquestion current validity is the fallibility of
forecasting,
examples going back to the Buttonwood Tree days being cited by
Neill.
Kuhn,
doing all the pressing.
saying
The
was
partner
a
ready
no
uncertainty.
While it is full well realized Federal is in
possibly be on the verge of repetition today in the guise of the
steadily increasing investment consumer's acceptance of "infla¬
tion" psychology, and his faith that equities will provide a defense
against ever-increasing depreciation of the dollar (irrespective of
the timing element).
Mr.
market
■
history is
in national
Strauss
(Special to The Financial Chronicle)
With this lack of
certainty comes the pulling of bids and buyers take to the side¬
of the
Another
change
a
support by Federal, as in the past at
will prices be allowed to go below par
and this always spells out
answers
what is
'
Mr.
formerly
Prices Under Pressure
bring
or
ol
Brothers.
only minor interference by the Central Banks to keep the
market orderly?
-! 'A;.-. ■
'. ■ yy_- A'.
Federal
following,
or
an¬
with
and query: "In retrospect, 1929 is a most
alternatives of
Will there be
just above 100
been
Rockefeller
rious
To be sure,
levels
has
S.
Rockefeller,
are
study.
entertaining psychological
When next the urge to buy 'symbols' strikes us, shall we
remember 1929?
Probably not."
Possibly the truth lies in compromise between the two distinct
being liquidated?
are
become
Rockefeller
consultant and finan¬
as
President'
little bit
more
.
has
the
adviser,
it
by
Laurance
bonds.
past.
.
Strauss
with
vanced
insurance
more
L.
nounced
general market uncertainty and the wide price spread between the
eligibles and the taps caught up with long bank issues, at last, and
as
.
Lewis
associated
brothers
doing in the past, the bank obligations also were
which is contrary to recent market action of these securities.
of these securities
Observations
Brothers.
TJiis is because the outlook
Obligations Join Downtrend
the ineligibles
Dallas,
nancial adviser to Rockefeller
the feeling that
and then only in
indicate lower quotations, provided the complicated inter¬
national situation does not alter the
banker,
Admiral, and member of
Energy Commission,
appointed consultant and fi¬
created
now
buying should be done only when necessary
Familf
investment
Atomic
for the
measure
uncertain affair and this has made
very
a
The
Rear
pushed down in all long treasuries,
were
"quoting down" being responsible in
drop.
to, to increase the capital of the
First
Former
and the price decline accelerated somewhat.
The bank
issues joined the recession due to switching and certain amount!
of
In
cago.
government
a
Chairman."
*
Rockefeller
By JOHN T. CHIPPENDALE, JR.
named
Executive Vice-President and
Cashier.
Walter
J.
Meyer has
5
page
Governments
on
volume
Chicago "Journal of Com¬
creased
Warren
folk,
the
to
the
-t
Reporter
National
Murphy has been elected
Bank of
'■'■
of
Banking 1919-1920,
Chapter,
Robert
Morris Associates 1926-1927, and
Corporate Fiduciaries Association
played
L.
President
Philadelphia
career
the
the
include
Chapter,
of
*
;
Common
on
1933-1938.
Fenninger's other banking
Philadelphia
the
L. L Strauss Becomes
Our
Paper
■.;
L.
1948.
President of the
was
Director
a
ica.
many years
the
Dominion
Paper Trade Association of Amer¬
merce"
*
retirement
Carl W.
dent
*
Old
Company ; President of the South¬
Paper Trade Association;
re¬
troller of the Currency—a stock
dividend of $100,000
having raised
the capital from
$50,000 to $150,000.
■■
the
Secretary and Treas¬
eastern
ported by the Office of the Comp¬
r[
of
urer
and
capital
Advisory Board of
Virginia in Norfolk.
of
Mr. White is
Jersey
City; he was appointed Assistant
Trust Officer in June, 1948.
33
(2693)
City banks^ it is indicated, have been among the important
buyers of longer eligibles which have
come
into the market.
15 Broad Street
45 Milk Street
NEW YORK 5
.BOSTON 9
WHitehall 3-1200
HAncock 6-6463
34
The Commercial and Financial Chronicle
(2694)
on
Continued
from
those companies which appear
to
3
page
be
in
their
second
pnase,
tne
period during wnich growtn is the
most
rapid,
risks
of
substantial
behind
Except for the ex¬
which, in turn, were above 1929 printed names of companies that tremely shrewd, or the extremely
have vanished from the American lucky, the risks inherent in tne
levels.
business scene, without thinking first phase of a company's devel¬
Application of "Growth Situation" of the lost hopes and lost dollars, opment period are disproportion¬
Usually, the term "growth com¬ that have vanished with them. ate to the profit possibilities. At
pany" is applied to an enterprise Most of these dollars, and compa¬ the other extreme, tnose compa¬
in a new line of activity that ap¬ nies,
vanished during this first nies which appear to have reached
parently is beginning a period of stage of company operation, due maturity, or the third phase, have
significant expansion.
In some¬ to incompetence, lack of sufficient their basic appeal to tne long-
What Is
what the
same
Growth Company?
a
sense,
we
may ap¬
ply appropriately the term
"growth situation" to (1) a com¬
which is developing aggres¬
sively new products via impor¬
pany
tant
research
(2)
programs;
to
to
develop and to exploit
intensively its established
lipes, and (3) to a company which
isigrowing through the acquisition
of profitable units in related or
new
fields, provided the capital
mjore
dispro¬
portionately.
To my mind, every successful
cojmpany goes through three sep¬
arate
phases
of
development
—
although the lines of demarcation
between each of these phases are
not
always defined sharply at the
time
of
transition.
The
initial
not
always
has
the
ap¬
managerial
skill, adequate financial resources,
and the product to make the grade
necessary
not.
or
Here, in the infancy stage, the
opportunity for capital gain is the
greatest, but let
the
me
emphasize in
breath, that here also is
same
the risk—and I
mean
risk
of loss
—the greatest. For every one ven¬
ture that develops into, a truly
successful
probably
enterprise,
more
than
there
a
of
Growth
Good
What
Pattern
stock
Let
in
ful
development of
are
thousand
The
company.
weathered
now
of
examine the second stage
us
the
trial
find
and
the
success¬
company
its
initial
tribulation,
the
that
solved
a
has
period
and
management
we
has
of adminis¬
problems
tration, production, financing and
At this point,
marketing.
we
can
with
we
stability of earn¬
rated
now
"business
man's
as
a
a
so-called
investment,"
but
to
qualifications
inherent
the
develop
into
later
indications of them should
visible to
a
those
are
now
be
capable analyst. Wnat
qualifications for the
"blue chip" classification?
First,
Impor¬ the
company must have competent
management.
Next, it should oc¬
cupy a well entrencned and im¬
initial phase, but profit potentials
portant position in an industry
are still inviting.
We can appraise that is
growing. Third, it should
the ability of
the management have a
superior record of expand¬
more
accurately, and it should
ing sales and profits over its his¬
never
be forgotten that manage¬
tantly, here the risk is substan¬
tially less than it was during the
tory.
is,
all
by
A
odds,
sound
the
prime
to
display
strong growth factor.
a
General Electric and General Mo¬
tors
are
The dividend record at this time
balance
sheet,
and an excellent income account,
are simply
the reflection of able
management. In the final analysis,
it is management alone that is re¬
sponsible for the success or failure
of any business.
Indicative of this, we know of
companies which have lost money,
even
though
they
operate
in
growing industries, while other
companies, operating in industries
which appear to have reached a
state of maturity, have continded
good examples of
is
not
especially
important,
is more
management
cause
reinvestment
witn
cerned
be¬
con¬
the
of
profits back into the business un¬
til it has reached a perioa of ma¬
We may expect dividends
to be relatively small in relation
turity.
to
share earnings during this
period of growth. Heime, many
per
almost
by
all
airlines
in
recent
years are too well known to merit
repetition, but there has been
one
outstanding exception to the poor
profits snowing recorded by the
industry
tion,
as
of
wnole.
a
That excep¬
is
cou.se,
Eastern
Air
Lines, whicn meets all our basic
qualifications for a good growth
s.ock.
First, it has able and effi¬
cient
cost
management, with excellent
control; secondly, it
serves
a
traffic
generating area over
favorable terrain; third, the reten¬
tion of earnings in the business
long period
a
ample
and
cash
and
has built
up
working capital,
the dividend
policy has been
Competition has in-
conservative.
oreasfd
sell
on
and also at
a
be
to
seen s
development,
well
into
its
and
ccnditioning
Some
the
This is
a
that stock buyers have
premium
been will¬
equipment
authorities
have
is
huge.
estimated
possible sales volume
as
high
$1 billion annually, with the
replacement market estimated at
as
$350
million
certainly
tion
It
would
that the satura¬
far distant.
Such
is
point
volumes
or
become mediocre
en¬
does not have to be too cynical to
realize that some of these are go¬
ing to fall by the wayside and
vanish from the scene, just as
they
< id
in the automobile, the radio,
i
nd the aircraft
manufacturing in-
nies
are
in
this
latter
classification,
the soundly established public
are
to
similar issues.
the
industrial
category, we
c'V'tries over the last 30 years.
find the leading tobacco
shares,
Jy the same token, the more such
as American, Liggett & Myers
bl 7 managed and stronger factors
and R. J. Reynolds; the larger va¬
in
his currently booming indus¬
riety chain enterprises, such as
try ire almost certain to survive, F. W. Woolworth and J. C.
Penney;
ard no doubt, their stocks will
the food stocks, such as National
pi?o e profitable holdings for those
Biscuit, National Dairy Products,
shrewd enough—or lucky enough
Borden and Corn Products
<
it
•
select
in advance.
these
Refin¬
survivors-to-be
Whether such compa¬
to name a few from the reit television stock offerings, as
re-,
rc
J iintz TV,
Pacific Mercury Tele¬
vision,
Kaye-Halbert,
Trav-Ler
Radio, or Olympic Radio and Tele¬
vision, will be
among
these
sur-
vivors-to-be will require some
tremely able appraisal
ex¬
on our part
at this time.
ing;
some
oils, such
ties
and
of the investment grade
the Standard Oil equi¬
as
Texas
of these stocks
and
never
able
but
well
naturally enough, profit¬
holdings during bull markets,
they have completed rather
their
period
Of
dynamic
growth, which is the phase which
in this discussion.
look at the 11 thick vol¬
Advice
solete Securites, with their thou¬
In
upon
thousands
of
closely
on
Selecting Growth
Situations
we
selecting
should
growth
concentrate
line transportation, air-condition¬
indus¬
qualify
dustry.
a
tions
as
ap¬
growth in¬
a
Aptly termed
"the wood
thousand uses," new applica¬
for plywood are being de-,
veloped
constantly, not only
building, but also
residential
the
commercial
in
in
industrial
and
fields.
PlywoOd is used by house
builders, factory and commercial
building
contractors,
furniture
makers, radio and television man¬
ufacturers, farmers, the Govern¬
ment itself, and from individual
home makers who
repairs
or
homes.
The
want
additions
to
make
their
to
industry
has recov¬
ered sharply from its readjustment
period of last year. Most of the
this field must be rated
stocks in
speculative,
as
but
interesting
situations appear to be U. S. Ply¬
Georgia-Pacific
wood,
and
Plywood
Lumber, M. & M. Woodwork¬
ing and Harbor Plywood.
far
So
chemical
the
as
stocks
observers
now
question whether the major
chemical companies have reached
concerned,
are
of
period
a
some
maturity.
They
cer¬
tainly ha^ve
in
the
past, and when one looks
at
the
size of such huge chemical
duPont, Union Car¬
Dow Chemical,
Chemical and others, it
enterprises
bide
&
as
Carbon,
Monsanto
Manufacture of air-conditioning
While
$100
million
so
units for normal commercial pur¬
prohibited
was
during the
important
perhaps will not be quite
rapid
it has been in the past.
rates of earnings and
as
the
dividend increases may well slow
down
in
the
nevertheless
future,
this industry still gives
indication
increase in the number of installa¬
of
The
tions in industrial plants
interesting, situations in this cate¬
but there
war,
was
an
(making
essential to
These
continue
gory
applications will
be
to
appear
most
duPont,
Dow
Chemical, Monsanto Chemical and
American Cyanamid.
The ethical drug
precision manufacture.
industrial
continuing growth.
to
chemical
the
field is
close
so
industry that it
along with
important, but
probably will be outranked by the
should
ture of the products, operations of
to
be
the
full
of each cycle
range
ex¬
it.
be
considered
of
Because
the
essential
na¬
ethical drug manufacturers are
af¬
fected to only a minor degree by
fluctuations in the business cycle.
Plant
investment
is
relatively
small, manufacturing methods are
highly mechanized, and the costs
of labor cand raw materials are
relatively moderate, so that profit
margins in this field have been
The market for
quite satisfactory.
drugs has increased tremendously
in the past decade,
reflecting pri¬
marily the addition of newly de¬
products, resulting from
productive research in the field of
chemo-therapy.
veloped
we
all know, such new prod¬
in
As
ucts
the
anti-biotics
field
as
penicillin, streptomycin, aueromycin
and
Chloromycetin,
have
quickly
wide
found
wider
the
and
vitamins
also
has
acceptance,
synthetic
of
use
done
much
to
augment the earning power of the
leading companies in this field.
American
the
fourth
has
cern,
Cyanamid. ranking as
largest chemical con¬
noteworthy re¬
pharmaceu¬
biologicals in recent
done
search in the field of
ticals
and
(especially the anti-biotics), elec¬ closely with changes in national
years, and can be regarded as one
tronics, insurance, certain special¬ income, but is due more to such of
the
leading
pharmaceutical
factors as deferred demand aris¬
ties in the machinery and office
ing from major wars, changes in enterprises which could continue
equipment field, natural gas, per¬
the profitable development of new
the marriage and birth rates, pop¬
haps the oil and paper industries,
antibiotics
and
other
drugs.
ulation movements and the longer
plastics, rayon and television.
term shifts -from lower to higher Among other enterprises in this
Obviously, this does not mean
which
qualify
for
the
income brackets.
It is significant group
that all companies operating in
to note that the building industry "growth" label, in my opinion, are
these
fields
haps
are
that
few
would
than
qualify.
of
There
who would
some
the
airline
qualify, that the
dustry is
per¬
argue
stocks
paper
in¬
cyclical industry
more a
growth
one, or that the oil
has already reached its
period of maturity.
At any rate,
a
industry
all
are
worthy of
some
and there are many
which
tions
terprises,
into
the
are
discussion,
special situa¬
growth en¬
true
today is
directly
closely connected,
more
indirectly, with Fed¬
eral Government policies than are
or
businesses.
other
many
Public
building (including Federal, State
and
municipal) is
now
understood
to
comprise about 25% of the total
construction program, and it is ex¬
pected
years.
that do not fit neatly
tivities
foregoing classifications.
this
that
increase
over
percentage
the
next
will
several
However, through the ac¬
of
the
Federal
Govern¬
ment in the field of
tainly
dustry.
situations, growth
attention
I-
;
construction
value
able management
growth
possibilities.
for
pay
good
Price wise,
The
umes
of the
Marvyn ScudderRobert D. Fisher Manuals of Ob¬
sands
Many
leaders during
are
concerns us
I
Company..
are
periods of general market strength,
the
to
future
exceed
one year.
poses
Chemical
the plywood component
try,
pears
in
any
equities, such as Pacific ing, certain new components of tending over a period of about 17
Gas
&
Electric, Southern Cali¬ the building industry, such as ply¬ years in the past. This long range
of
the
cycle
is not correlated
fornia Edison, Consolidated Edi¬ wood,
chemicals,
ethical
drugs
In
Within
of
and
Products
in
utility
son, and
Construction
sharp contrast to does seem reasonable to assume
levels, when industry sales ;that their rate of growth in the
prewar
failed
annually.
appear
of commercial installations
1950 levels for .growth
stocks
are
substantially
above in the near future.
Possibly of
terprises. Using hindsight, which while Northwest Airlines might
those for 1929, which is not true greatest long-term importance is
is so accurate
arithmetically in be a pertinent example of an en¬
the tremendous market now being
of the general market.
our
business, but so completely terprise in the first category.
An
excellent
example
of
a opened in the large medium-invalueless so far as profit-making
To complete the picture of the
come residential field by the prac¬
is concerned, we can
growth situation may be found in
easily name three
phases
of
a
company's
tical development of small, stand¬
the Minnesota Mining and Manu¬
now numerous examples of those
growth, the third phase is, of
ardized conditioner units.
businesses which have developed
facturing Company. With its com¬
course, when the company has ap¬
mon stock currently selling around
Air-conditioning equipment is
into outstandingly successful en¬
parently reached maturity.
It is
125j/2 on the New York Stock Ex¬ made by a relatively small num¬
terprises—but to have made that soundly
established, in a strong
ber of independent specialists, of
decision
when
these
change, earnings per share on this
businesses financial
position, and obviously,
issue amounted to $7.07 last year, which Carrier, York, Trane and
were in their initial period of de¬
well managed.
Its products enjoy
and dividends totalled $2.6*0 per Frick are the most prominent, and
velopment is something else again. a well known trade
naiiie, with a share.
For
At this price, the stock also by the operating divisions of
every
General Motors and high degree of customer
accept¬
Chrysler in the automobile busi¬ ance. Its common stock has ac¬ yields 2.07% on the basis of last some large corporations engaged
primarily in other activities, such
ness, there have been a dozen or
quired a seasoned investment rat¬ year's dividends, and is selling at
17.8 times last year's per share as Chrysler (Air-Temp) and Gen¬
more Marmons, Jordans, Hupmoing, and it will be found among
eral
Motors
(Frigidaire) in the
biles, Stutz, or even Wintons and the common stock
earnings.
holdings of the
automobile
industry,
General
Stanley Steamers.
well known investment trusts. The
Growth Industries
Electric and Westinghouse Elec¬
To look at the current industrial
appeal of the common stock is
tric in
the electrical equipment
and stock market
picture, we all now more for income stability
Having in mind what we should
field, and Worthington Pump in
know how the rapidly growing than
for
its
price appreciation look for, let us examine first those
the machinery field.
television industry has captured possibilities. In this
group today, industries which may be consid¬
the fancy of speculators this year. we find most of the
The building industry has cor¬
great Ameri¬ ered as growth industries at this
With more than 100 factories now can corporations with
long divi¬ time. I would include the follow¬ rectly been regarded by security
producing television receivers, one dend records. For example, there ing groups in this category: Air¬ analysts as a cyclical one, with
that fail
New
"•rt
second
period, that of dynamic growth.
Tre
potential
demand
for
air-
chemicals, precision instruments
basis, and textiles) where proper/ tem¬
relatively high price- perature and humidity control are
earnings ratio.
ing to
of,
piiase
low-yield
rather
a
uai
characteristically
stocks
growth
and
compa¬
a
an
good growth pattern.
a
as
along its routes, but the
invest¬ company has maintained its posi¬
ment grade equity, the so-called tion by economic operation.
"blue cnip."
The
If it is to have tnese
air-conditioning industry
qualifications in later years, some appears to have completed its iniwith
probably detect the establishment
of
stocks,
The difficulties encountered
oyer
is
for
looking
are
ings.
primarily fine
is
strong financial position.
a
Establishment
ment
it is
who
concerned
factor.
parent whether the company will
be successful or not-—whether it
investor
term
ings and dividends, combined with
phase usually covers the first five
the company's his¬
pnase
uct, and in some cases, it must be
years or so of
tory—when
prod¬
poor
a
a
ing to its business a substantial
portion of the cash flow of earn¬
structure is not expanded
resources,
initial
admitted, due to dishonesty.
which has been return¬
company
ings
financial
the
witn
the
the company.
that the airline
mean
group, have been profitable hold¬
Thursday, June 29,1950
...
air transport industry cer¬
qualifies
as
There
is
potential
transportation
growth in¬
still
a
large
a
inherent in air
but this does not
antee and
lending, guar¬
regulation, Federal pol¬
icies today influence to consider¬
able
degree
the
important field.
activity
in
this
such
concerns
as
Abbott
Labora¬
tories, Merck & Co., Parke, Davis
& Co.,
Sharp & Dohme, Inc., E. R.
Squibb & Son, and Charles Pfizer.
American
Home
Products |has
been
growth situation so far as
a
sales
have
sales
have
million
last
in
been
concerned.
increased
1940
to
from
$148
Net
$35.3
million
but the 1949 per share
of $2.77 on the common
year,
profits
stock
do
tionate
share
not
gain
represent a
over
earnings
for 1940. This is
tile
propor¬
common
of $1.77 reported
primarily because,
American Home Products has
complished
ac¬
expansion to a
large degree through the acquisiits
Volume 171
Number 4920
.
.
.
The Commercial and Financial Chronicle
(2695)
tion of other
enterprises; this
pro¬
gram, begun in 1936, has resulted
in
tne
acquisition of about 30
established businesses.
I
Electronics Field
World
rapid
War
II
spurred
development
the
of
the
elec¬
tronics field, which has also
cap¬
tured the speculative imagination.
Nowadays, there is the tendency
to
hang tr.e "electronic" tag on
any device that plugs into a wallsocket.
Electronics
has
been
de¬
fined
rpughly as the science and
art of applying the potentialities
radio and
of
variety
of
electronic tubes to
other
wireless
than
purposes
broaacasting
and
munications.
Of
the
a
com¬
many
com¬
dominant
factor
nological
manufacture
electronics
important work
include
General
Electric.
Westinghouse,
Zenith,
Sperry Corporation, P. R. Mallory,
Pnilco, Radio Corporation, Sylvania
Electric, DuMont, Hazeltine
Weston Electrical Instrument.
and
It
would
term
that the longer
potentials in this
appear
growth
field
The
insurance
has
business
in
rapidly
grown
the
United
uses.
interesting
These
companied by tne necessary tech¬
improvements
and
in
laying
the
of
steel
pipe, and in the essential facilities
for the
long distance transmission
of natural gas.
At
present,
of
the
exception
of
worthwhile capital gain possibili¬
ties, combined with satisfactory
yields.
network
of
every
country, with the
the Newr England
plans
have
been
formulated
by
leading factors in the industry
Oil
of
Cali¬
by Standard Oil of
and Phillips Petro¬
Jersey)
leum.
years
or
the
so,
be surprised to
may
industry regarded
paper
phenol
process.
Output of plastics has increased
with
new
production
steadily,
records
established
plant
and
been expanded
the end of the
here; there is
discuss
plastics
ramifica¬
many
to
cially, and
developed
have
The
war.
industry has too
now
recent
substantially since
limit
plastics
in
capacities
tions
f
Some security buyers, whose fi¬
nancial memories go back for 15
as
the
Standard
as
owned
New
see
hardly need to add that
interest¬
more
fornia, Richfield Oil, Lion Oil,
Amerada, Humble Oil & Refining
States, the Pacific Northwest, and
certain regions along the Atlantic
I
Among the
names
the low-cost
ing stocks in this group, are such
years,
issues
(72%
vast
a
pipelines serves practically
section
the better grade oil stocks
possess
Coast.
almost unlimited.
are
field, and agricultural
out
here in
the
West.
discoveries have been ac¬
course,
purely electronic field, but other
in
its
in this plastics
has been both aggressive and suc¬
Often called "the chemical in¬
grouping; for example, Eastman
cessful in the practical application
dustry of the future," the most Kodak,
througn
its
Tennessee
of
electronics
to
business
ma¬
intriguing field within the oil in¬ Eastman
operation, Lib beychines.
V-''.':
dustry would appear to be that of Owens-Ford
(through the Plaskon
petroleum
chemistry. Important Co.), and in the
Natural Gas Industry
closely related
discoveries in the field of
hydro¬ synthetic
fibres
The natural gas industry has
division,
Fire¬
carbons, accelerated during four stone
Tire
&
Rubber's
expanded rapidly over the past 20
velon,
years of war, have created an ef¬
Goodrich
Tire
&
years, and still has a well defined
Rubber, and
fective foundation for a new
syn¬ Owens-Corning's
period of growth ahead of it. Tne
fibreglass. Gen¬
thetic organic chemical
industry, eral Electric is in the phenolic
significant factor here has been
using oil and natural gas for raw resins
that the status of the industry has
field,
and
Westinghouse
materials.
For these
reasons, se¬ Electric and Masonite are in tne
changed from a regional to a na¬ lected
oil stocks, in
my opinion, laminated
tionwide business. Tnis was made
products division. Duqualify as growth stocks, and in rez
Plastics and Chemical is a
possible by the discovery of huge
addition, large underground re¬
natural
gas
reserves
in
comparatively
small
but
fast
Texas, serves give these issues
attraction
growing maker of phenol-formal¬
along the Louisiana Gulf Coast, in as
inflation hedges.
I think that
the Mid-Continent fields, and of
dehyde molding powders, utilizing
panies
involved
in
this
work,
Raytheon Manufacturing does the
largest volume of business in the
companies doing
in
within
ones
are
constantly.
being
Lately,
there has been increased emphasis
on
quality,
growth field.
and
competition and the rather ruth¬
States, and this country is believed to supply these regions
just as less price cutting that followed types of plastics best suited for
to have more insurance in force
their requirements.
Competition
quickly as possible. The outstand¬ the tripling of productive capacity
than all of the rest of the world
ing feature of the industry has in the southeastern section of the is, of course, keen, and here again
combined.
one
An indispensable part been its continuous
comes
back to the first re¬
growth in re¬ United States in the 1929-1939
of modern economic life in this cent
quirement,
competent
manage¬
years.
Note here the favor¬ decade.
However, over the past
the
country,
has
shown
insurance
business
strong growth trend
because of (1) the increase in the
number
a
of
people making use of
existing forms of insurance,
(2) the expansion of the ex¬
the
and
able factors of the product offered,
its low cost, its cleanliness, and
ten years the per capita consump¬
tion of paper has increased from
the absence of
244
as
well
relatively stable expenses.
Here again, we find the market
tent of the coverage
provided. The
characteristics
insurance
is
Of
tally
business
sound
because
it
is
based
wide diversification and the
upon
law of averages.
the
*
fundamen¬
time
to
and
growth
We do not have
discuss
in
detail
operation
industry,
the
the
in¬
of
the
of
growth
stocks.
four
leading transmission
o n 1y
Tennessee Gas
systems,
Transmission
basis,
is
while
Texas
on
the
Eastern
(which
a
dividend
other
three:
Transmission
the
operates
"Big
Inch"
believe and "Little Inch" pipelines), Texas
that it still has excellent growth Gas Transmission and
Transcon¬
potentials ahead of it.
The most tinental Gas pipeline are not yet
surance
but
storage problem,
a
the low labor costs, and
as
I
satisfactory investments for the paying dividends. In fact,
average
stock buyer are to be Transcontinental Gas Pipeline
found in the fire insurance group,
such
among
stocks
as
American.
Aetna,
Fidelity-
Continental,
Phenix, Insurance Company of
North America, Great American,
Home, Springfield Fire, and Fire¬
In
t%e
is not scheduled
sys¬
for comple¬
tion until later in the
Ob¬
year.
New
358
to
pounds,
indication
an
markets
for
of
cer¬
growth.
and pa-
paper
field
of
specialized
ma¬
chinery, certain companies appear
afford interesting growth pos¬
sibilities.
For example, Black &
Decker Manufacturing, the world's
largest maker of portable electric
to
ago,
war
growth,
paper
an i
new
what
containers
paper
none
are
available at
a
worthy of inclusion in a growth
Another
interesting growth
company list.
Today, the oil industry ranks as field served by some paper and
our
fourth
largest
industry, in pulp companies is the rayon in¬
terms of capital investment, being dustry.
Highly purified bleached
,
exceeded
in
size
only
by
the
sulphite pulp is the
material
raw
for
leum
has
been
not
a
steady
increase.
CooperCorporation, rated as
the leading producer of gas-engine
driven compressors, should be an
-important beneficiary of the ex¬
panding natural gas industry. This
company is also the sixth largest
factor in the heavy Diesel engine
field, which has also been a good
•growth industry in recent years.
Cooper-Bessemer sales have ex¬
panded from the $3 million re¬
ported for 1938 to over $35 million
year-to-year
Bessemer
reported last year.
ery
Food Machin¬
& Chemical Corporation pro¬
an expanding line of labor-
duces
saving machinery and equipment
-for
the
of other textiles has been astound¬
have
but
an
food
processing industry,
interesting growth
•possibilities through its large and
.increasing chemical activities.
and also affords
In the field of office
equipment,
broad
classifications
business
as
of
agricul¬
having reached
and
staple fibre
is
made
by
the
Originally introduced
stitute
for
methods
or
can
wood
use
pulp,
industry has been either exclusively, or in any pro¬
a strong under¬ portion. Leading producers of the
lying secular trend. While petro¬ dissolving wood pulps used in
leum consumption tends to follow rayon, cellophane and other nongrowth of
the
characterized
by
general industrial activity, yearly
variations
have
not
been
so
products
paper
Paper
and
International
are
Rayonier.
Container
and demand appears to Corporation is the leading manu¬
of
fibre
be resistant to depression influ¬ facturer
cans,
folding
ences.
Expansion of automobile cartons, corrugated and solid fibre
quirements
higher
tate
yield
in
its
price
with
of less
an
class,
Admit¬
around
indicated
than 2%
cash
(based
on
"tthe $4 paid last year), the appeal
of the stock is
strictly limited to
a
small class of investors but it cer¬
tainly has been
in every sense
a
growth situation
of the word, and I
"think that it will continue to be
J
growth situation.
a
It is, by far, the
founded
was
in
changes
general economy, and any
the
years.
serious
recession
would
probably
for
In
less
1923, rayon ac¬
than
total yarn consumed
1%
of
the
in the textile
today
is
Acetate yarn is noted
percentage
importance in our na¬ mand and prices.
Discussion of the plastics indus¬
only after the
basic necessities of food, clothing try perhaps should have followed
and shelter.
I think that the un¬ my
comments on the chemical
derlying growth trend of the oil industry, since the large and im¬
industry will continue over the portant factors in this field are,
the
years ahead, abetted by such fa¬ for
most,
enterprises
that
for its softness of feel and draping
vorable
still
ranks
in
economy
basic
factors
popula¬ manufacture a variety of other
growth, increased transport chemical products, such as duPont,
requirements, expansion of resi¬ Dow, Monsanto, American Cyandential construction, and the in-; amid, Union Carbide, Atlas Pow¬
creasing
application
of
Diesel der and Hercules Powder. How¬
as
tion
power,
to
railroad, industrial and
authority is
even
ti.at
of
who
before
in
of
the
newest
optimistic
more
last
the
industry
quoted
was
that
seem
the
the
day
How¬
newspapers.
ever, it is already apparent that it
will not be all smooth
sailing on
quiet
a
seasonal factor is
pear
We hear already that
sea.
far
so
receivers
are
problems
as
the
use
starting to ap¬
sales of television
as
concerned, and such
color
television
and
ofultra-high-frequency
channels, now before the Federal
Communications Corhrpission, re¬
Tlie industry
growing pains in due
main to be resolved.
will have its
course,
and
in
address,
this
will
fall
I
early
afraid that
am
Johnny-come-latelys
the wayside.
The
important manu¬
by
and
television
of
receiving
transmitting equipment should
and
able
to
survive
deals there
category,
would
I
ing.
and
or¬
Electric,
Columbia
such
Electric,
Philco,
Broadcast¬
Other "likely
survivors are
Corporation,
Emerson
Admiral
Radio,
DuMont
Sylvania
in
television
addition
is
worthy of
important fac¬
an
as
tube
its
to
Motorola.
and
Electric
consideration
tor
include
General
as
Westingnouse
Zenith
whatever
ahead, and in this
are
companies
in
mentioned
I
as
the
of
some
production,
activities
out¬
side the field of television.
You
can
see
from
ments
that
this
growth field is
these
com¬
a
broad one, and I have painted the
picture
with
strokes.
sive,
be
broad
remarks
my
considered
all-inclu¬
I rather imagine that
in the investment field
and
everyone
has his
rather
some
Certainly
not
can
favorite growth stock
own
and
We
I wish
discuss
certainly
have
that I had the time to
them with
of
many
you.
For
example, Consolidated En¬
gineering is a growth stock fa¬
vorite here and back East.
Lane-
Wells is another California
growth
situation of real merit, and it is
one of my favorites.
The impor¬
tant
services
rendered
the
to
industry by this distinctive
pany
reflected in its unique
record, with the volume
are
growth
business
of
oil
com¬
since
increasing
Lane-Wells
organized
in
was
each year
originally
1949
Gross
1932.
at
was
record
a
income
high—at
million reported for 1939.
Physical
capacity
has
been
ex¬
panded consistently, and the serv¬
ices rendered have been improved.
—
living, find reflection in the paper in¬
the major product, gasoline, dustry in the way of lowered de¬
tional
opinion
leader
cer¬
Per share
process
15%.
lubri¬
it would
ana
we
variety of them
rapidly
above
a
latest
rate,
any
naa a
profits have grown from
has been developed
only since
1930.
This $1.30 in 1945 to $6.32 in 1949 on
the 360,000 shares of $1 par stock
bach is an interesting West Coast
process gives a yarn that is better
In
addition,
the
paper situation. One word of cau¬ adapted for sheer goods, and the outstanding.
tion
here
the
paper
industry demand for it for use in dress quarterly dividend has been raised
appears to be a growth industry, materials
has grown sharply in at each of the three last meetings,
pa-
Crown Zeller-
and
fuel and
year,
the
of $2.7
it may seem, the
this country in 1911, but the ace¬
recent
a
as
industry
rayon
counted
as
impact
with cotton.
Surprising
in
tre¬
At
and
but it will be sensitive to
the
1947.
flexibility
strength in
comparison
farm
and
mine.
tainly have
tnis
this
accurate
as
in
perboard products.
mechanization
piobabiy will be
that
almost $16 million—six times that
snipping containers and other
to
year
sets
sold
and
proauced
heat resistance, greater
,this outstanding maker of business
and
greatly
rayon
important market for viscose
yarn has been developed in the
tire cord field, where it has dem¬
onstrated its qualities of superior
the
237,
for
1940 to 227.5 million tons in
field;
tedly,
on
An
cant is essential to modern
to
acceptance
and public ac¬
rayon has grown so
rapidly
that demand has fre¬
quently outrun production. This
has led, naturally enough, to a
steady increase in productive fa¬
cilities, and heavy wartime re¬
impor¬
growth,
but
other significant
influences
include increasing residential and
industrial applications of oil-heat¬
ing devices, wider adoption
of
the
of
nmnoer
be
tnan
the
enough of them here in California,
this
been
the
will
as
is
of
ceptance
most
has
contributor
tant
of
mate
mentioned,
lnuusiry, and your esti¬
situation.
marked,
usage
already
television
merits,
Petroleum,
1940
since
When we witness the viscose process. Formerly, cotton accelerated the rate of expansion.
periods of over-produc¬ linters had been used almost ex¬ To illustrate this, output of viscose
tion and price cutting, there are clusively in the manufacture of yarn
for tire manufacture
in¬
acetate yarn, but present acetate creased from 9.6 million tons in
many who, logically enough, re¬
either cotton linters
nave
conspicuous growth
tne scene today, as I
on
consumer
own
.to my mind, is International Busi¬
ness Machines.
Gross revenues of
million reported for
$183.5 million last year.
sub¬
as a
has
rayon
maturity.
manufacturing
industry
received
mendous development of aviation.
$46
silk,
recurrent
gard this field as
being quite
cyclical
in
character.
Yet
the
most
its
.the outstanding growth situation,
machines have expanded from the
of
permanently captured some ing. A chemically developed prod¬
low price-earnings ratio.
uct, rayon's basic raw material is
Among markets
served
exclusively
by
cellulose derived from either cot¬
integrated systems, United Gas glass and metal in the past.
ton linters or wood pulp.
and El Paso Natural Gas are well
viously,
Television
The
to the American
economy, and of
the three basic necessities: food,
have accounted for about 90%
but
rayon producer; and Celanese, tue largest acetate producer,
wnicn
is
aiso
interested in the
field of chemicals and plastics.
be
uses
been
in
tnis growth in¬
American Viscose, our
are:
The textile manufacturing in¬
dustry has always been important
increase in capacity.
Paper con¬
domestic textile fibre consump¬
tainers, for example, have a def¬
However, development of
inite cost advantage over other tion.
the synthetic fabric, rayon, and its
container materials, such as glass
public acceptance at the expense
and metal, and there is no
ques¬
tion
dustry
facturers
find, due primarily to over-capac¬
ity in the cotton and woolen pro¬
for
products, have justified this ducing trades, which in the past,
when the
lation
have
participation
established
five years
ended.
Popu¬
uptrend in
sales from less than $7 million in
1940
to $24 V2
million last year,
tools, has recorded
is
perboard products have been de¬
veloped aggressively. Current ca¬ clothing and shelter, textiles and
apparel rank second to food and
pacity in the paper industry is
allied products. The overall tex¬
now above 25 million
tons, rnore
tile industry has been about as
than 47% above 1939
levels, and
cyclical an industry as you can
about 20% above that of
practically all rayon yarn and
ture, railroads and public utilities. staple fibre produced by the vis¬
cose process, and about 83% of the
Hence, it is not surprising that
total
production of rayon yarn
some observers regard the petro¬
this
ment,
when
representation
selected in this group.
Rayon and Plastics
man's Fund.
*
tem
the
pounds
tainly
not
Interesting media for
largest
commer¬
greater discrim¬
They recall the ination on the
part of customers
excessive plant capacity, the keen
in selecting more carefully the
a
would
a
long list of
a
available
new
time
our
otherwise
developed.
35
ever,
we
also
find
some
qualities, while viscose is out¬
standing
for
its
strength
and
creping qualities.
Research, which has improved
appreciably the quality, strength
and
dyeing properties of rayon, is
opening new fields for both
acetate and viscose rayons.
of
rayon's
result of
growth
has
widening the
Much
been
the
of its
markets through research with its
other development of new fabrics, which
scope
from
40
cents
50
to
cents
60
to
cents, thus placing the stock cur¬
rently on
In
an
annual $2.40 basis.
conclusion,
emphasize
that
I
would
there
like to
still
> are
many attractive growth situations
available
to
the
common
stock
buyer, which will prove, to be
profitable investments, and which,
over
of
outperform
market.
tience
period
a
greatly
will
general
years,
the
Shrewd selection and pa¬
are
the
two
primary
re¬
quirements.
that I
am
selected
included
My final comment is
convinced that carefully
growth' stocks should be
in everv well-balanced
investment portfolio.
36
The Commercial and Financial Chronicle
(2696)
Continued from
first
Possibly the next suggestion
page
but it is
ern,
"We believe that within
As We See It
ment in
extract from the minority
following
the United States.
views:
"The
ment
to
We
the
employment, production and purchasing power
be taken
lightly. Fortunately, the ability of
.
.
.
government to make good on these declarations (re¬
iterated assertions that the Administration knows how to
prevent depressions and assure continued growth
and
ex¬
pansion of business) has not yet been severely challenged.
Postwar demands and business expansion have postponed
that
day. The interim affords an opportunity to examine
machinery available to government by which
and test the
the ends
of the Employment Act of 1946 may be furthered.
"Thoughtful and competent economists recognize the
inadequacies of even the best 'tools' available to govern¬
ment for maintaining economic stability.
Honesty on the
part of the Joint Committee demands that it recognize
this and that the problems cannot be solved by omission
or
exhortation"
Continued
do
from
we
no
reward
a little
wary of the notion of "testing" governmental ma¬
chinery in the interim, but there is a good deal of hard
sense in what is
here said.
But see what immediately
general there are two conflicting views as to the
approach of government to the solution of these
problems. First, there is the approach which relies upon
detailed controls, a 'planned' economy, and a detailed
attack upon prices, bottlenecks and 'needs.'
The other
concept of the government's role in economic affairs
places greater reliance on broad climactic policy in the
monetary, fiscal, monopoly, and investment fields. Each
year since the Employment Act was enacted, reports of
the Council of Economic Advisers and policies of the
President have consistently adhered to the first of these
alternatives. We have as consistently adhered to a prefer¬
ence for the second method of
dealing with economic
problems.
"The broad tools of monetary, fiscal and monopoly
;
and
call
idle¬
encourage
national
a
"welfare" does
not
down to is, of course, a
full agree¬
that it is the
duty of the national government to
maintain full employment and banish recurrent economic
depressions, and disagreement only as to procedures to
be employed for that purpose. One insists
upon what might
be termed
"direct" intervention often
by fiat; the other
Keynesian, pseudo-Keynesian, and neoKeynesian nostrums., It is our considered opinion that
either is certain in the end to lead to
something very close
to disaster. Evidence that the
minority is deeply tarred
is
more
with
inclined to
the
more
shown from the
"modern"
economic
fallacies
is
it
one
uses
man's
,
in
Today
freedom
following sentences taken from its
eral
banking
and
Reserve Board in
which have
a
credit
policies
such
manner
a
through
as
developed toward inflation
"We recommend
that
the
to check
or
the
public works program be
relationship to the general economic situa¬
tion, expanded if there appears to be too great a deflation,
and restrained if other construction
appears to be normal."
varied also in
:
"We still consider that
a
support-price program for
farm prices is highly desirable to prevent the develop¬
ment of a depression
through a complete collapse in agri¬
cultural
prices. The administration of this program should
be directed not as a
relief measure or a guaranteed income
equality for individuals, but as a major weapon against
all
an
of housing, par¬
ticularly in the stability of the housing industry and the
reduction in cost."
our
every
select
or
complete
influence.
have
make
Government
venture
a
ceed
political
from
know-how
the
and
with,
ventures
freedom
lacks
not
does
required
enterprise
to
suc¬
fortitude
the
to
"no" or to liquidate, espe¬
cially at times when, or in areas
where, such decisions might be
say
fraught
with
administrative
or
political difficulties.
The
further
subcommittee
that
re¬
general
equity
funds, except in the case of small
business requiring between $50,000 and $500,000 of new money.
ported
shortage
It
it
no
even
at
time
that
said
found
funds,
of
no
in
our
has private saving and
capital investment been
as in the last five years,
birth
ness
been
rate
by
the
and
year,
moving
inflation
higher and
It said:
failures lower.
have
would
"It is al¬
postwar
that
been
worse
government which is in had there been still higher levels
danger of smothering the enter¬ of investment."
Second, could someone else do
prise which built America.
a
first
The
people
State
that
intelligent it?
for
they and their associates
are
themselves guilty of expand¬
not
their
selfish
it?
do
the
The
ask
about
could
Third,
The
being
is that it is now
answer
There
done.
pirvate
are
competent and
eager to make sound loans.
In
short and medium-term credit, the
agencies,
ready,
banks
are
bank
loan
shown in
doing it.
The average
this
in
country,
as
recent survey of rep¬
a
resentative banks, is
would
about $2,300.
longer-term credit,
companies are mak¬
ing large amounts of loans of such
of gov¬
size in relation to worth that they
such legislative
First, is it neces¬
every
are:
Second,
sary?
interest.
should
we
proposal
else
in
powers of government
own
questions
each and
be
rule
who
don't
really want
Socialism is to make sure
ing the
thrifty and energetic,
long way towards
has
it
abuse
America
made
tough human qual¬
a
someone
what
long-term results
four
In the field of
the insurance
the
government.
ering
of Congress
added
to¬
judgment would
big
to
in the
now.
which
we
may
believe government can do better
than
private enterprise,
them
be
make
and
ought
we
carefully before
still bigger.
capital
termed
be
By a lowering
Today the present session far from vacant.
is debating proposals of taxes, large additional amounts
banking area which in my of money would be made avail¬
ness.
are
Even when consid¬
projects
fairly
may
rule
we
reasons
point
This
intervention?
dangers of
testing it severely
gether
But
stand.
can
These
great.
knows just how much
no one
adopt
we
big government
We ought instead to
cutting it back to
efficient
an
the
example,
further
nearer
able
is, for
to put back
proposal
to set up
mechanisms
government
for loans,
loan guaranties, or for
capital advances to small business.
Some
bankers
are
supporting
these proposals, since they would
give banks the benefit of govern¬
ment
guaranties
high
on
risk
themselves
businessmen
for
us
There
move
State Socialism.
into business.
Testifying recently before the
Banking
and
Currency
Senate
Committee, Harvey J. Gunderson,
of
Director
Reconstruction
the
Corporation, is reported
stating: "Small business needs
Finance
as
relief
tax
far
it
than
more
does
additional
governmental loans.. > .
func¬
There is plenty of venture capital
tions.
The
Suppose we apply the suggested available to go into small busi¬
danger of its very
First as to necessity, a re¬
bigness should be offset against tests.
nesses; but with the tax laws as
the advantage of any single serv¬ port on "Volume and Stability of
they are, an investor knows that
Private
ice which it might render.
Investment,"
issued even
if
the
small
enterprise
March 23, 1950, by the Subcom¬
proves
an
outstanding suecess,
Weighing Every Proposal
mittee on Investment of the Con¬
of
loans.
limited
Department
the Internal Revenue
The American people have not
gressional Joint Committee
the will
on
chosen big govern¬
ment; lew have voted for the So¬
Economic
Report,
extended
comment
cialist Party.
perience of organized venturegroups
designed
to
fi¬
capital
nance
small concerns promoting
new
products or processes:
deliberately
promoting
been
the
The major steps in
big
rather
government
the
action
of
have
selfish
Under business influence,
groups.
tariff
held
was
excessive
at
levels
long after any justification
protecting "infant industries."
was
the farmers seeking spe¬
favors,
and
the
politicians
seeking favor with farmers, who
put the government into the price
support business, and as a direct
result
into
business
the
of
regu¬
lating farm production and paying
people for not producing.
With
hand, government raises
prices of meat and eggs and but¬
one
With
ter.
the
other, it raises
wages and taxes, and takes away
the farmer's gain.
Both actions
squeeze
the school teacher, the
nurse,
the
doctor,
the clerical
worker.
So we might go through
the whole range of expanded gov¬
ernment activity; and we will find
that
new
ernment
state
private
on
and
local
enterprise
government
group,
often
reputable,
very
to feather its own nest
by making
the government its agent.
result
of
unwieldy
Perhaps
all
this
is
our
bureaucracy,
The net
present
growing
includes
an
the
on
the outstanding
expe¬
ing to their testimony, is the great
shortage
not
of
funds
but
of
soundly conceived projects.
On
approximately
&
looked at
propositions
2,100
35% were
rejected at once because outside
the
firm's
purpose,
or
clearly
lacking in merit.
Another 52%
were rejected after initial review.
in
the
last four years.
A further 12% were
consideration.
full
1%,
resulted
most
in
five
hundred
the
in
range
rejected after
Only
17,
thousand
to
dollars,
one
achieving 10 to 40% minority in¬
terest.
Of
been
17
proposals, two have
successful, five
extremely
moderately so, two will involve
moderate loss, four may possibly
involve total loss, one definitely
is,
and
three
are
in
the
early
stages, incapable of appraisal.
These
the
facts
are
illustrative
difficulties which
zations
must
money
v'; ":
Third, what would be the longgovernment inter¬
term results of
vention?
might
be
worthy cases
Some few
get help;
more
cases
but there would
like Lustron and
the
where
Waltham,
taxpayer
the bureaucrat's mis¬
takes.
Legitimate business would,
have
the unfair competition of
for
pays
Just
as
-
business.
subsidized
has been the case with the
RFC, lending would be subject to
political
New
pressure.
bureaus
would be created which we might
ulous
get rid of, and the unscrup¬
leader would have at his
hand
a
never
the
mechanism
banking
private banks.
for
vote
A
posals
is
take
from
over
the
<
lending
pro¬
for bigger
gov¬
these
vote
a
to
business
ernment, for high taxes, and less
freedom of
a
vote for
enterprise.
It may be
government banking to
replace the chartered banks.
.
the
away."
or
investments,
from
the
of
most
government
this point, J. H. Whitney
Co. stated that they had
take
ex¬
rience of these companies, accord¬
inroads of national gov¬
largely the result of efforts of
some
take
with
supported
Enterprise is
ity;
and
recommendation that the
government
active interest in the
development
funds
applies, by way of loans. They are searching eagerly
illustration, to the banking busi¬ for more such loans. The field is
are
our
even during the last
public agency tan allocate
which
bring collapse to the entire nation."
renew
As the location of plants
ernment
distortion between urban and rural incomes which
could
"We
al¬
but
slowing down the forward drive
It
deflation."
pay
have gone a
we
recom¬
tendencies
to
hand-outs in agricul¬
taxes of the
in
of gen¬
Federal
taxes
America
of
sistance,
cial
"The government (should) continue its control
be¬
ture, in housing, in relief, and
old-age and unemployment as¬
clearly
mendations:
its
another to loaf.
choice."
ment
program
assure
for
the
national
welfare.
Unemployment insurance, loosely
granted, is against human wel¬
fare.
Government is unjust when
administration
What It Comes Down To
bigger
ing
to think
comes
ill-adapted,
only
adversely equipped to try to
history
private
as
high
toward
policy which truly liberal economists regard as the only
means
of promoting stability while maintaining a free
government have received little support from those pres¬
ently in government positions of economic power and
responsibility. The most useful tools have been thrown
away; the most effective weapons spiked by deliberate
What this
not
together .probable
To
"In
is
war, no
one
ness.
proper
in
capital
demonstrated
How Much Government?
others are
follows:
results
field.
They
suggest emphatically a type of
operation for which government
handle.
4
page
venture
and that at no time has the busi¬
that
We in common, we are certain, with many
believe
governmental, which seek
achieve constructive
most
The whole
injustice when we assert
that majority and minority alike—and we could as well
include the President and his entourage—take as their
ideal a "continuously expanding economy." That is to
say
the earlier New Deal notion of economic
maturity is com¬
pletely and tiresomely repudiated, and to that repudiation
is attached the ambition of
banishing the business cycle.
And all this the national
government must accomplish
by its own actions or by actions it induces among business¬
men! And no one knows what causes
depressions—except
a few
politicians, and they cannot agree among themselves!
maximum
is not to
short time American indus¬
Majority and Minority Alike
undertaking on the part of the Federal Govern¬
use
all reasonably practical means to promote
vate or
to
tne
problem of exports
and imports and their effect on a stable economy during
the next two or three years is a serious one, and our Com¬
mittee should proceed immediately to consideration of that
subject."
about economics and business.
the
a
It is:
try will face the problem of increasing imports at steadily
decreasing prices which may interfere with full employ¬
year's documents have some observations of value, but
considered in the large, this deliverance is "political," too,
and is far from free from the modernistic jargon of the day
Consider
wholly mod¬
may not be
less ominous for that reason.
no
Thursday, June 29,1950
...
face
of
all organi¬
whether
pri¬
There
fore
made.
other
are
this
much the
proposals
Congress
same
about
be¬
which
comment might be
The Congress has
already
the RFC
provide a secondary market for
mortgages.
They have voted a
housing bill, better than earlier
extended
the
power
of
to
d-afts. but
nf
a
further encroachment
anuornmont
rrn
ont^rnrkp
a
i
Volume 171
Number 4920
.
The Commercial and Financial Chronicle
.
.
(2637)
further
bound
At
encouragement
of
un¬
played
when
agencies
other
are
government
battlelronts,
being
thousand
a
..of these
minor,
chines
added
may
seem
together
they
this country
for Human
enough.
People who
just against things don't win
influence
and
people.
ulcers.
therefore think in posi¬
us
tive terms of the kind of country
want for the greatest welfare
we
of
business, and the community?
want, I believe, more than
climate of opportunity,
all will be tempted to
a
which
live
at their best.
children
For
our
own
think first of educa¬
we
tion^ then of vocational
tunity, and the chance
to
something,
it
back
and
community in
oppor¬
of
which
a
save
all
man
a
and
live in peace with cer¬
woman can
tainty of justice
and order.
:
The greatest contributions gov¬
ernment can make are first of all
the
.
establishment
order.
There
of
are
justice
order.
and
people in
many
this country who are not
justice and
sure
Goon
of
squads
still exist, and lynchings.
High
ment
in
the
of
rank
govern¬
duty is maintaining
stable
that savings
a
yalue of money, so
from
today's
toil
retain
their
worth.
Only government can do
this;
and
the
instruments
are
sound fiscal
policy with balanced
budgets,
and
policy free of
tion.
!
We
monetary
sound
political
domina¬
don't have these
Again
government
atmosphere
an
No
system
works
in
which
high average level of education, a
large percentage of our people
most
the
of
human welfare
ministers, in particular, there is
lief that life would be improved
by bigger government. If we are
going to keep our democracy, we
of
means
for
nature
a
which
government, and especially
national government, cannot ad¬
minister
well
and
should
not
undertake
to
provide.
tivities should
be
initiative, and to
governments.
Such
left to
ac¬
private
local and state
Better Servant
of Human Welfare
Private
known
enterprise
it
has
not
as
have
perfect.
The greatest recent impetus for
bigger government came from the
depression and unemployment of
'30s.
The
enterprise
something that works auto¬
matically, and its success is de¬
pendent upon the wisdom and the
courage
and the enterprise of
many people.
Its greatest virtue
is its extraordinary vitality.v That
very vitality may lead to insta¬
bility, so that the system needs
self-restraint
constant
criticism
to
see
self-
and
that people don't
crushed in the forward rush
Those
of the economic machine.
it must
believe in
who
people.
Other
are
convince
people
learn
in
the
mass
by
of
Economic
Re¬
search, the Brookings Institution,
contributions
individuals make to the growth of
economic
the
well-being.
This
is
right and wholesome.
But eco¬
nomic success carries with it so¬
responsibility.
success
has
meant
Too
often
takes
the
study how
United
States
to
do it, or they send
to this country for engineers or
economists.
Even
the
Russians
immediate
selfish
advantage.
This is today
the great economic issue in Amer¬
ica.
This is the
moving tide, and
must
we
choose
which
doing
our
industrial
they
their
best
mechanisms.
making
are
imitate
to
slow
But
progress
because their whole philosophy of
forbids
them
from
way
The
ican
secret
of
it
the
tion
of
business
in
the
of
Jersey,
C.
Smith, Smith, Barney &
Co., New York
is
P
was
elected
of
movement
the
tide
e
r
id ent,
s
these
theories
well
they
In
B.
Parker.
In
Australia
R.
W.
Zealand
and
Germany,
New
where
have
electing
are
England,
checked.
free
is
has
life.
been
time, for
no
sickening.
or
choice,
our way of
Socialism
This
despair
not
are
people
It is
the
time for confidence and redoubled
effort.
>•'
:
"There
ing Courtland
working
practice.
in
is
tide in
a
the affairs of
men
to
on
&
Co.
Harry D. Mil¬
ler, Nugent &
Igoe,
East
Orange,
was
Vice-
named
President;
Fred
J.Brown,
White,
Weld
& Co., Secre¬
tary;
C.
Elected
fortune;
ernors
of their
voyage
shallows and in mis¬
eries.
Smith
McBride, Miller &
to
were:
the
board
of
gov¬
Mr.
Parker, Edward
S. Hinckley, J. S. Rippel & Co.,
and
in
Wallace
J.
and
Co., Newark, Treasurer.
life
Is bound
Edward
J.
Kezer, B. J. Van
-V;^ ■/".v-";"
Ingen & Co.'
:Y
On such
And
Press-
prich
William Roos,
Which, taken at the flood,
a
sea
are
must
we
we
now
take
the
f-- when it serves,
Or lose
William
H.
Castle, Pa.,
ventures."
our
William H. Johnson
afloat;
current
son
on
an
Johnson
of
New
associate of John¬
& Johnson of
Pittsburgh, died
Tuesday, June 20th.
With First Boston
Morton, Hall Adds
(Special to The Financial Chronicle)
'
BOSTON,
Mass.
—
Alfred
G.
to
own
election
New
succeed¬
is
Capitalism, and they are opposed
Capitalism. When they organ¬
ize
government
corporations to
Wallace
of
today in our favor. We have the
results; others have theories, and
Amer¬
The secret of
success.
annual
Club
City,
government
using the inner
the
At
Bond
it
will carry us.
we
are
of
that
Omitted, all the
to
form
of govern¬
or
this
Leads
missions
the
powers
for
Countries that want to improve
their standard of living send com¬
Zuccaro, Jr.,
has
been
added
to
LEWISTON,
Maine—Rupert F.
Aldrich
has
the staff of the First Boston Corp.,
staff
Morton, Hall & Rounds,
75 Federal Street.
Inc., 226 Main Street, 'j
«
-
of
been
added
to
the
extraor¬
an
economics
and
well-written
solid
basis; the
informative
and
on
a
increasingly
reports
of
business
corporations; a higher standard of
knowledge on the part of many
newspapers
and magazines; and
perhaps most of all, the coming
of
ica had stopped growing.
It was
the theory of the mature economy.
a
new
generation
in
business
which understands the theory, as
well as the practice, and is able
to tell other
are
real
people about it.
making
progress,
question is whether
try
wise enough to recognize
advantages they enjoy, wise
enough to analyze the reasons and
see
that we keep on with the
methods that bring good results.
are
the
There
are
two
questions about
our
ability
full
tide
of
and
to capture the
American enterprise
let it carry us forward to new
achievements and new standards.
The first question has to do with
but
we
the danger from
without; whether
civilization
our
will
become
in¬
moving fast enough to head volved in a war with totalitarian
wave
of ignorance
and Russia which would destroy the
prejudice which is sweeping for¬ fruits of our enterprise and our
ward toward the enlargement of mechanism for
achieving prosper¬
are
the
the powers of the state.
ity.
It Can Be Done
In the face of the
government
here
That is
growth of big
elsewhere,
and
countries
tain
allied
such
the apparent apathy of the Amer¬
Russia
ican
It
people to what seem to us
principles at
stake,
many
intelligent
people
are
today
greatly
discouraged
about
the
outlook.
Reading historians like
Toynbee, they wonder if the tides
of men are not beyond our con¬
trol, so that there is no use in
trying.
This spirit of defeatism
to
me
utterly
contrary to the facts.
wrong
and
Let's look
record.
looks
to
is.
or
of
human
a
for
to
main¬
world
than
that
will
against
us.
hope that in
way
of life will
better in terms of
satisfaction
rather
that is
war
our
our
much
the
over
that
will
peoples
follow
it
But
Communism.
long-term hope and not
present one.
For the present
we
a
must
military
The
America
make
course,
so
it
strength
other power
any
the long run
orove
with
military
hesitate to
the
seems
danger, and
grave
a
the only way to avoid it appears
to
be for this country and the
remain
strong
in
the
Securities Salesman's Corner
By JOHN DUTTON
If
have
been
thinking about a method of keeping in
prospects and customers between calls made by
salesmen, consider the advantages of using a penny postal
touch
.you
with
your
for
card
your
this
The addressing problem is simplified.
to attach to each separate mail piece as
would be the case if you were
sending out a small-sized mailing
in an envelope.
You can arrange to have your message printed
There
are
purpose.
no
stamps
the cards in
on
But it is
tive
and,
if
informal
attractive manner, and at a low cost.
an
important that
possible,
method
of
must be used in
care
also
planning
said
in
can
But here is where
do the job.
different
a
you make your message look attrac¬
important. A postal card is a very
approaching anyone. For this reason great
preparing such an advertisement, especially
in the securities business.
It is
ingenuity and some
important that what you say is
than
most of the postal-card adver¬
tising which is hastily prepared and poorly printed.
Here is an example of what we mean: Baron G.
Helbig &
Co. of New York City used the following card in a recent mail¬
ing. At the top (running lengthwise on the card) was the legend,
"The Plan's The Thing."
Under this heading was printed a floor
plan of a house, the type with which everyone is familiar. Then
the copy, as follows:
"Plan your investments as you plan your
house.
Failure to Plan your investment program invites loss and
disappointment.
Our book, 'How to Plan Your Investment Pro¬
gram' is available FREE."
Then appeared the company's sig¬
manner
nature and
address, and again at the bottom of the card in italics
appeared the slogan, "Planned Investment Programs."
The entire
card was printed in neat blue
ink, and it not only was easy to
read but
was
also very
compelling and impressive.
times you send mail to clients
prospects, they always like to see your name and hear from
No
matter
how
many
and
you.
The
more often you put your name before
your customers and
prospects the better it is for your business.
It makes selling old
customers easier and it eventually brings in new customers.
But
it is important to keep a high standard of
quality in your mail¬
ings.
Don't be afraid to be different, providing you are on solid
ground, should be the slogan of every advertiser in the securities
business.
There is the most dramatic and compelling
story
in the
world which centers around people's money.
It is the very core
of their hopes and
fears, and it is about time that the entire
securities
these
will
sense.
business
problems in
also
feel
took
and
off
the
wraps
and
began
to
approach
that people will not only read, but
understand.
When Helbig & Co. send their
a
manner
prospects and customers
danger, and the
one, is that our
very prosperity may undermine
our energy and our initiative and
our wisdom, and we will lose the
secret of our great success.
This
a card with the plan of a house upon
it,
investment planning to house planning, they
are telling a
story that even a school boy could grasp. That is
what you must do when you are selling
intangibles such as securi¬
ties, if you are going to GET ACTION.
danger
second
insidious
more
and
they
compare
You could
plan
a
whole program of educational information
leadership.
The extraordinary fruitfulness of
American industry turned the tide
in
that .you could pass along to your own
mailing list which would
the form of the school of thoueht
help you jdo more business, if you worked out a series of ideas
along these lines. You could send these postal-card messages out
in
rwmtry t^e mechanisms and
the
first
World
War.
turned it again in World
Jt has cseated
a
It
War II.
standard of living
which
at
the
would
moment
introduce
arises
in
this
mo¬
tives of Marxian Socialism, which
have
never
succeeded,
in
conspicuous in thje United States far ahead of place of the mechanisms and
are
Industrial
Board,
The American enterprise sys¬
great secret of the enter¬
prise system is that people are tem, otherwise known as capital¬
rewarded in accordance with their ism, is now at flood tide.
With
skill, wisdom and energy; and the the exception of the Soviet Re¬
rewards
usually go roughly in public and its satellites, the world
to
results
They have been proved wrong;
Confer¬
and as far as we can see, the presothers, which est floodtide can go a great deal
establishing the basic data of further if the
people of this coun¬
National
ence
The
proportion
The
about
Bureau
at the
guard it.
anywhere.
People dinary flexible way for the pur¬
democracy and pose of making profits.
Under
our economy as
they learn other this system, the machinery has to
things—through the schools, and be used in such fashion that it
books, and papers, and radio, and produces what other people want
through their daily experiences. at a price
they are willing to pay.
Many good things are being done
In the '30s there was a group
in economic education through the
of economists who said that Amer¬
will
system
is not
cial
fore,
have
great publicity campaigns.
off
we
been
to
is gathered up and
machinery and operate it,
they lose the secret, for the effi¬
There is no easy method of cur¬
ciency of operation of American
ing this
disease.;
You
can't
machinery lies in the organiza¬
We
a
it
teaching their ideas;
notably; the labor union groups.
the
Making Business
teach
as
being carried out more efficiently
today in America than ever be¬
a
widespread lack of understanding
widespread be¬
of business, and a
must
partners in enterprise or
shareholders.
The
society
but
way,
and
not
are
applied to the production of goods
that people need.
This process is
eco¬
tional
essentials
are
our
nomic system works. ' Among our
school and college teachers and
work of such agencies as the Na¬
people
wisdom
This
men.
painful fact is that despite
groups
so¬
our
distribute
which
ment
the envy of the world.
the large expenditures for public
education in this country and the
how
and
living.
of individuals
Economic Education
understand
them
Capitalism,
increasing the
and
Capitalism is a method
by which the wealth of millions
dure its quality by constant and
rigorous attention.
don't
organization
as
known
enterprise system is the best
system there is, we must all en¬
One
100
ma¬
the government, but
by private individuals,
owned
as
believe that
we
of
by
either
by
create
goods and services for
new
fellow
us
economic
today.
can
fewer government regulations and
lower taxes.
get
are
be
itself; and while
are
of
less puni¬
supplemented with a
business morality which keeps in
mind these pitfalls.
create
the
owned
administration, but it needs
to
than
These
more
Most of these machines
itself
also
the
l; But
Act
that
so
of machinery
use
the
use
that
extended
has
individual
years ago.
and
standard
govern¬
tive
with
energy,
skill and
will be allowed and encouraged to
their
The
some
of
their product through the popula¬
tion are responsible for our high
competitive
than
controls.
want of government,
we
We
all else
in
rather
which
by the
accomplish
ciety to
children and their friends.
our
What do
of
to
way
use
of
brilliantly successful. The
thinking does not usually go all
the
American
education and freedom of
the
Let
•
the
is
the
man
can
bureaucratic
grow
needs clarification and
They usually belong to unhappy
minorities afflicted with stomach
enter¬
government with business was the
Sherman Anti-Trust Act, which
ment
not
the
of
monopolistic.
One
of
the
fortunate
interferences of
must
enterprise
Up to this point, we have been
talking in largely negative terms.
friends
and
danger
itself
pointed
Welfare
are
Another
one
before.
this
and
of the
arm
should
Positive Program
is
re¬
one
move.
That
public
men
determine which way
is to
of
sense
prise system is that big business
engagements
but
anywhere
the
clear
a
and
Each
been
machinery
machinery
sponsibility.
socialistic government.
tives
One secret of
enterprise
private
in the
average
man
lives
America than he has
in
lived
ever
engagements
in the conflict
fought
between
The
better
Tne
with
separate
minor
by the Socialists.
enterprise system will work
upon
other country
any
world.
economically successful live mod¬
estly and without ostentation and
timing.
on
in
emotions
best and with least friction if the
preaching restraint,
these proposals add to their other
faults that of bad
Thus,
prime
that
and
arouses envy
resentment—the
time of inflation and rising
prices,
are
spending which
ventures.
a
37
the
mo¬
at
regular
intervals, and it would still be a very inexpensive
building confidence and goodwill, which are the two
ingredients necessary if you are going to move ahead in the
method
of
investment securities business.
I
38
The Commercial and Financial Chronicle
(2698)
A
et must now be discarded.
cold
Tomorrow's
war
is
economy
Where
Whyte
a
US
problem that will engage
all.
,: ^
■
*
*
Says—
*
bright star in
array—and again
I deliberately disregard moral
Anything I write today will
become
obsolete
before
it arguments—is that heavy in¬
even
gets into print.
The dustry is bound to benefit and
such benefits are bound to
fighting which has broken out
in Korea makes that almost a seep down to the lesser lights.
this dismal
*
♦
certainty.
*
We've been
*
in
cold
a
war
with
shoe.
cold
a
chronic nail in his
As of this
unsettlements.
Readers
still
are
when it went to 28 V&.
The stock market, a mirror
cordingly. The first shock of
any
major unsettlement,* a
violent change in tha status
quo, is reflected in the mass
from
retreat
or
for that
of securities.
any
It is
that
thought
stocks,
common
matter
the
form
second
on
of
tive
that
the
surance
the heaviest losses
think
that
before
Geo.
Burgess Joins
mentary reasons.
si:
#
With A. W.
Dougherty
sobering thought,
irrespective
of
the
moral
questions involved, is that
any hope of cutting the budg¬
w
with
pace
The
life
insurance there
Members
Stock
Exchange
New York Curb Exchange (Associate)
San Francisco Stock Exchange
Chicago Board of Trade
14 Wall Street
OOrtlandt 7-4150
Private
New York 5, N. Y.
Saa Francisco—Santa
By the nature of its busi¬
offer
reasonable
certain
de¬
of
sification.
/,
,
are
conserva¬
tively with less than 5% in
ferred
and
Life
common
companies
pre¬
standards
on
especially
are
and undoubtedly
policy will continue.
this
Growth there has certainly been.
In the three years, from the end
1946
to
number
the
of
end
of
1949,
;
the
has
in¬
installations
coal
of
fuel
or
using natural gas under long-term
are in an enviable posi¬
contracts
in
concentrated
western
south¬
the
141,755
or
and
working
capital
has
pyra¬
mided the rather astonishing
amount of 464%!
not hurt the company
where
part of the country.
gas
there
appreciably.,
be pip 3d only
can
existing
are
Suburban
and
mains,
those
serves
rural
where the
population dens-iiy does not warrant construction
areas
of such lines.
While
service
the
in
utilities
/
,
provides
company
the
same
sense
a
that
selling manufactured
or
natural gas do, it nevertheless is
not subject to the jurisdiction of/
state public utility commissions,
its
and
margin of profit is there¬
solely by com¬
petitive factors.
determined
fore
but for the most part they
tion,
95,128 to
revenues are up 94%, divi¬
dends have risen 99%, net income
has more than doubled at 136%,
any
oil, there is al¬
the spectre of John L. Lewis
rising oil prices.
Companies
use
from
Obviously
reasonable
a
these require¬
single industrial
group.
But if the companies are
hydro, the vagaries of the weather
offer a problem. If the companies
than
ments
are
stocks.
presented,
The advent of natural gas should
^
Be selling
(7)
or
most
failed
not
by acquiring d/sirable
established
properties
whenever
advantageous opportunities were
sharp economic recession.
a
(6) Possess geographical diver¬
ways
(not
carriers,
increases
taxable)
of
view
In
indicated
earnings
for 1950 of around $2.50 per share,
an
increase in the current quar¬
without
meet
to
like best for future progress and
profit is the stock of the Lincoln
mated
Propane
Gas
Corp.,
reservation, appears
seven requirements.
any
my
A
comparatively new company,
only in 1945 to acquire the
liquefied petroleum gas business
formed
earnings for 1950,
to
be put into effect.
can
Suburban
the investment which I
with
was
an
be
overlooked
current levels.
It has
appears
bargain
no
at
long rec¬
ord behind
it, but if the showing
compiled since 1945 is any crite¬
rion, investors should never have
cause to regret a commitment in
the stock made
now.
until
a
capital
of
Continued
from
$110,300,
6
page
increased from time to
1928
with
when
it
assets
reached
of
$30,-
Consumer Loan Problems
service.
loan
sumer
It
was
PHILADELPHIA,
Pa. — The
Philadelphia municipal bond firm
of
A.
The taxes would have to
Dec.
George S. Burgess
obvi¬
Webster
formerly with H. G. Kuch &
Co., Wurts, Dulles & Co. and
Butcher & Sherrerd.
With Luckhurst & Co.
Mass.
has
Robert
H.
connected
standard business to which
&
Co.,
Inc.,
50
Street.
Per
100
Shares
•
St'd Oil
(NJ) @771/4 Aug. 21 $487.50
@78
Aug. 18 725.00
Am.&Fr.Pr.$6 @70% Aug. 28 850.00
Del. & Hudson @34
Aug. 25 225.00
Miss-K-T Pfd. @26% Aug. 28 400.00
Allis-Chalmers@331/2 Sep. 25 350.00
Anaconda
Cop.@ 31% Sep. 22 225.00
Westing. Elec. @33% Sep. 29 212.50
Panh'dle East.@44% Aug. 29 325.00
Studebaker
Mission
@34% Aug. 28 487.50
Corp. @64% Aug. 21 587.50
..
Subject to prior sale
or
price change
Members
Put
&
Calls
Brokers
A
Dealers Assn., Inc.
50
Broadway, N. Y. 4, TeL BO 9-8470
was
In
social
welfare
programs
exhausing other tax
addition,.there were serious po¬
an&jjconomic implications
litical
in social intervention of the
types
its
District of
Puerto
Rico,
Columbia, Hawaii,
Philippine
Islands,
finance
be
Increase
t%
thei^-loans.
companies would
the average size of
To make this possible,
wisef /social
legislation would be
the legal loan
by the past, and that may not be limit/of the companies from the
an
adequate
expectation,
great old $300 maximum to a higher
things may be expected of Lincoln limit, without increasing the rates
National—The
Security I Like of charge previously permitted on
Best for the Future."
The stock loans up to the $300 figure, and
is traded over-the-counter.
with lower rates prescribed for
we
are
to
judge the
future
necessary.
loans
STEPHEN
J.
SANFORD
to raise
exceeding this figure.
Then
Manager, Investors Research Dept.,
if
demand
the
(heir
caused
inflationary"
by
Intervention
Social
Raise
to
Loan Limits
During
past decade social,
enabling
consumer
companies to meet the
the
intervention
finance
needs
of
for
consumers
advances
in excess of the old $300 maximum
established
main
eral
by the Uniform Small
Law of
Loan
1916 has taken
forms.
sev¬
.'v ■ ■'
'.
First, states which have recently
legislation based upon the
enacted
Uniform
Small
Loan
Law
have
specified maximums higher than
the old $300 limit. Thus, the Cali-.
fornia Act (1939) set no limit, the
Washington Act (1941) prescribed
$500 and the Nebraska (1943) and
Ohio (1943) Acts, $1,000. (No limit
set in the Ohio Act
was
nally
passed,
but
later fixed at
was
as origi¬
maximum
the
$1,000.)
.
Second, in some of the states
which adopted legislation based on
the
Uniform
many
years
Small
ago,
a
Loan
Law
trend has be¬
raise the old $300 limit by
amending the loan maximum sec¬
gun to
tion
the law.
of
ments the limit
in
By such amend¬
raised to $500
was
(he States of Illinois
gan
and Michi¬
in 1947, in New Jersey in 1948,
and in Connecticut and New York
companies found a
for
Amott, Baker & Co., Incorporated,
amounts
New York City
operation
forces.
sources.
apply, and partly because
In the end, it appeared that the
large income from the re¬ most
direct and effective solution
insurance of many other life in¬
to the urgent problem of holding
surance companies.
It operates in
down
operating cost ratios, and
all states (except
Alabama, Geor¬
thereby 'Y&tes of charge to con¬
gia, New York, South Carolina,
sumers, in the case of the con¬
Vermont and Wyoming)
and in
sumer
of
services
in
in 1949.
:
.
Third, 'in
some
of
the
states
and in others (Colorado,
Indiana, Louisiana, Maryland,
(Suburban Propane Gas Corp.)
Massachusetts, New
Hampshire,
advances and thereby increase the
Oregon, Pennsylvania, Rhode Is¬
Naturally, we all hav6 our favor¬ average size of their loans. It was
land, Utah, and Wisconsin) there
ite securities, both for trading as
hoped that, because of the in¬ are now additional statutes under
could
well
THOMAS, HAAB & BOTTS
ment's
higher mentioned.
and Panama Canal Zone.
SPECIAL PUT OFFERINGS
out
rates
the
Luckhurst
State
—
become
come
31, 1949, assets were $424,of the pockets of the beneficiaries
478,000 and unassigned surplus
or of the lower middle class since
$34,659,600. Earnings in 1949 were
the multiplication of the govern¬
$18.89 per share.
Fresent price
Dougherty & Co., of the stock is
116.
1421
Chestnut Street, announces
The
company,
under
superb
that George S. Burgess has be¬
come associated with them in their management, has made rapid prog¬
ress, partly because of its sub¬
trading department. Mr.
Barbara
Rosa
(5)
ness
capital was increased
$3,500,000 by the declaration of ous, however, that such interven¬
tion would not prevent a rise in
a
stock dividend;
again, inji946,
the true rates of charge, which
it
was
further increased' to its
would be composed of the appar¬
present amount, $5,000,000 by an-N
ent rate and the increased taxes
other stock dividend. Vthere are
needed to cover the subsidy or the
presently outstanding 500,000
losses / of
government operation.
shares of $10 par value.
As of
Monterey—Oakland—Sacramento
Fresno—Santa
ments.
liabilities
or
invested
are
time
Teletype NY 1-928
Wires to Principal Offices
of
than adequate and their as¬
more
sets
kind
has
been
progres¬
44%,
practically no
loss
cycles.
are
for
reserves
this
in
ups-and-downs
which
Cities Service
York
because
In 1943 its
•
New
companies
uniform
Their
dollars.
business is
alert and
management
(4) Have demonstrated a will¬
ingness to increase dividend pay¬
to
Securities
Schwabacher & Co.
depreciating
An
Virginia.
have
to expand
creased
the
If
Pacific Coast Exchanges
trend
companies
acquired.
sive
to
254,000.
with
on
earnings
an,
tion
$2,500,000
BOSTON,
Orders Executed
Have
price-earnings ratio.
Electric
utilities, as a group,
probably come closer to fulfilling
is necessary to provide the
desired purchasing power to keep
pendent
strongly upward.
profitable and constantly increas¬
ing business which progresses as
the country grows but at a faster
rate as greater insurance protec¬
Company
Wayne, Ind. Incorporated
in 1905, the company began busi¬
Hughes
Pacific Coast
expan¬
formation, additional inde¬
of Fort
was
The main
a
National Life Insurance
Burgess
si:
-
carriers do
Of this latter group of insurance
suc¬
ceeding column will be writ¬
ten there'll be more ups and
downs, some equally violent
as the one of Monday.
In the
long run, however, I think
stocks will go higher for ele¬
that these
rather than
by large payments in cash.
a
the
shares.
company
further
fensive characteristics in the event
Among my reasons for prefering the life over other insurance
dends
long
time. The war drums thump¬
ing assured that. As this is
written (Tuesday)
there's a
mild recovery going on,
though the underlying ner¬
vousness is
painfully evident.
I
life in¬
are
their shareholders with stock divi¬
showed
in
where
field
a
for
room
of
Massachusetts
of
(3)
or mer¬
warrant.
best
best of these
And the
in
views
*
market
there is
conditions
as
'
a
sion.
grows and
position to adjust
price of their services
chandise
ness
Monday's
country
in
are
then
and
whose security I
Operate
a
the
as
which
of
capable management,
both progressive and alert.
(2)
13
expressed in this recommended to such investors as
It is true that these companies
terly dividend rate of 21 cents is
necessarily at any prefer growth of principal to large can seek rate increases to com¬
expected this fall.
' - V";
lime coincide with those of the cash dividends which bear heavily
pensate for those higher costs* but
Suburban
Propane Gas Corp.,
Chronicle. They are presented as on income tax returns. Life insur¬ there is
usually a regrettable time
those of the author only.}
ance
companies usually reward lag of several months before such selling at less than six times esti¬
{The
porate profits which will be
*
grow
set
a
best must:
(1) Have
the
districts
article do not
shown in stock movements../;
*
make a wise selection, or prefer¬
ably shares in corporations which
like
Co. and
Since
standards
company
Gas
distribution
from
might be to list
prerequisite
The
His only recourse is to buy and
real estate, provided he can
are
Until they
destruction
gives rise to
hopes that huge replacements
will mean equally large cor¬
mass
still holding firm.
break their respec¬
stops the suggestion is
positions be maintained.
others
is
retreat
stemmed and the prospects
The
Suburban
Phillips Petroleum, it serves rural
areas along the Atlantic Seaboard
determine if any of the stocks to
which I am partial could qualify.
.
hold
stocks is
^
■
a
of hopes and fears, acted ac¬
by the decrease in the
value of the dollar.
true
Summing it all up, stocks
higher on practical property, casualty-surety and life.
writing, this
has burst out into
only return
the
principal plus interest at a
meager rate which will be more
will
method
should go
long of
shooting war. The latter was three stocks, Certain-teed at
inevitable.
But up to
this 18, stop 15; Flintkote at 33,
writing there is nothing to go stop 29, and Timken Detroit
by to indicate if this shooting Axle at 17, stop 14. Of these
will be continued
or
will three, the second, Flintkote,
broke
spread.
through its 29 stop
war
general
meeting these
conditions are, in my opinion, the
stock
of
insurance
companies,
a
man
of
2
Security I Lihe Best
The securities
*
long time. At first it considerations even if scare
was
disquieting; later we be¬ headlines, rumors and "radio
came accustomed to it like a
interpretations" cause initial
for
in
than offset
3 The single
By WALTER WHYTE ■
*
The
ties
Walter
page
Thursday, June 29,1950
.
eastern
taxes will fall is
new
from
one
thing; a shooting war is some¬
thing entirely different.
Markets
'
Continued
..
as
exceeding
make
some
$300,
they
investment purposes.
It has occurred to
me, however,
that instead of making a selection
on the basis of prejudice and then
attempting to justifying it,
a
better
creased average
size of their loans,
the gross income of
would
cover
expand
the
rise
the companies
fast
in
named
of these larger
enough
their
costs
which
consumer
' finance "
com¬
panies may qualify so as to sat¬
isfy needs of consumers for finan¬
to
cial
of
This
assistance
statutory
in
excess
system
of
$300.
permits
u
Volume 171
Number 4920
.The Commercial and Financial Chronicle
.
.
(2699)
loans larger than $300 to be made
rates which are commensurate
at
with
the
volved
risk
in
and
consumer
lending.
of these states
some
Continued
In
consumer
fi¬
nance
companies, after they have
adequate proof of ne¬
cessity, may be granted authority
operate
discount
companies
to
handle their applications for loans
of
more than
$300, thereby supple¬
menting their loan service.
However, in such
finance
sumer
cases
a
con¬
must
company
or¬
when
14-year peak
a
those in
records for the
types
of
cussed
based
(enacting
two
dis¬
legislation
new
the Uniform Small Loan
on
Law
first
and
providing
therein
for
adequate loan limits, or* simply
amending the loan maximum sec¬
tion
of
loan
the
act)
and
state's
avoid
constitute
social
existing small
duplication
this
much
wise
more
legislation.
-
Conclusion
During
5
•
All
the
past
decade
con-
'
5
one
of the major
sumer
>
'
face
credit,
with
con-
brought face to
were
crisis compounded of
rates of charge,
a
"
high
of
sources
costs
and
with
steadily increasing competi¬
inflationary forces
acting against fixed limits to sizes
of loans and r&tes of charge set
by law.
tion and strong
'
-
:
This
j:
problem
solved
was
by
'
wise
social
legislation which nei¬
ther subsidized the industry at the
•
of
expense
loan
taxpayers
cost of black markets
y
lions
short¬
and
financial facilities for mil-
age of
«
froze
nor
limits and rates at the social
American
of
which
limited
its
families,
but
intervention
to
simply
removing an obstacle to
satisfactory
functioning
of
private enterprise in serving the
needs of the people.
Moreover,
the
"
•
the solution adopted of
raising the
legal
-
limits
maximum
loan
not
only avoided a threatened rise in
charges to consumer
borrowers
(either through increase in legal
v
'
rates
or
growth
of
unlicensed
lending); it actually brought about
a
reduction in the rates required
for
■
finance
consumer
industry and trade
company
complete
yet complete because
states
:
have
It is not
permanent.
nor
not
of the
some
thus far provided
for
In the
is
ditions.
Indeed,
'
con-
states have
some
no
effective small loan law at all.
It
is
not
solution
and
sumers
companies
.
riod
'
permanent
a
because
and
tomorrow's
con¬
face another
of inflation.
largely
record of
than
for
.-
:
a
generation,
has
marked a
sort of revolution in the thinking
of social workers and
credit;
consumer
considered
some
certain
whether it be
tory.
recent
weeks.
regard
maximum,
or
$500
other figure, as a "basic
or
?
demand
Hot-rolled
a
balance
or some
principle"
loans
must
be
adjusted
realities of the changing
to fit the
world in which consumers live.
taken
on
steam
more
of
basis
report that business is
running at
high
a
level.
The reason, of course,
Detroit forecasters how look for
a
After that production totals
declares "The Iron Age."
announced
this
The current week the steel industry enters upon the eleventh
of the greatest production cycle in its history.
week
This week's operating
rate is equivalent to 1,929,100 tons of
ingots and castings for the entire industry.
A month ago
the rate was 101.5% and production amounted to
1,934,900 tons;
a year ago it stood at 79.9% and 1,473,000 tons.
steel
light and
mated
distributed
energy
The Financial
6,102,288,000
kwh.,
Institute.
according
to
is with
of Kansas
'
(Special
•
,
&
Kelly,
Reed, Inc.
City.
to The
the
esti¬
was
Edison
Electric
a
new
historical peak.
reached during the week of Feb. 4,
was
The previous
1950 when out¬
I
GRAND
W.
RAPIDS. Mich.—Chas.
K., Mills
is with King
& Co.,
Michigan National Bank Bldg.
were
a
steady throughout the period.
firmer undertone at the close.
The easiness was attributed to the
continued high
level of repossessions of 1949 loan cotton with
indications that the
supply position may not be as tight as had been anticipated.
De¬
,
mand was limited
mostly to mill and export price-fixing.
Reported sales in the ten spot markets declined
sharply to
100,500 bales in the latest week, as compared with
176,900 bales
in the Week preceding.
Loan repayments of 1949
crop cotton during the week ended
June 8 totalled 149,200 bales.
This was the largest for any
pre¬
vious week this season and
compared with 120,300 bales a week
earlier.
There
ended
on
much
was
of
further rise in
a
Wednesday of last week,
the
nation.
Overall
revenue
805,680
Railroads.
as
spending in the period
favorable weather came to
retail
dollar
This
was
freight,for the week ended June 17, 1950,
to the Association of American
an increase of 9,828 cars, or 1.2%
above
according
cars,
The
24.1%
week's
on
an
or
Output Hits New High Record
According to "Ward's Automotive Reports" for the week ended
to
an
estimated
Consumers
and
total of 205,820 units, compared with
(revised) units.
6,729
output for the current week
33,286
cars
was
trucks built in the United
made
of
up
States and
163,349
total
a
of
and 2,456 trucks built in Canada.
those
upholstered
"1
\
Business Failures Fall to Low Point of Year
Commercial
fifeek
ended
and
June
22
industrial
from
Bradstreet, Inc., reports.
were
25%
178
failures
in
the
declined
to
preceding
147
in
the
week,
Dun &
At the lowest level yet reached in 1950,
less
numerous
than
last
when
year
Casualties
failures,
involving liabilities
lower
under
this size group.
than
$5,000,
those
were
-<i...
which
of
$5,000
occurred
slightly below
or
a
more
year
last
for
V
more
house-furnishings in the aggregate
previous week; dollar sales were moderately
period in 194.9.
Furniture, of both
the similar
and
summer
varieties,
was
The interest in television sets
in
was
noticeably
increased
generally unchanged.
purchasing of housewares and large appliances
was
desultory.
Total retail dollar volume for the
period ended on Wednesday
was estimated to be from
unchanged to 4% above
that of a year ago.
Regional estimates varied from last year's
New England and Midwest 0 to
-f 4; East and South +3 to —1;
Northwest 4-2 to —2; and Southwest and Pacific Coast
-|-1 to -f-5.
Wholesale ordering increased
moderately in the week as sum¬
markets opened for durable goods and the advance
bookings
some soft lines continued to accelerate.
The number of buyers
attending various wholesale centers rose slightly from the
in
were
ago.
year's
a
year ago.
Department store sales
1950,
for
country-wide basis, as taken from
for the week ended June 17,
6% from the like period of last year.
An increase of
recorded in the previous week from that of a
year ago.
For the four weeks ended June 17,
1950, sales showed a rise of
rose
was
3% from the corresponding period
date a drop of 2%.
a
year ago,
but for the
year
to
Retail trade in New York last week suffered from wet
weather
which prevented dollar volume of department stores from
showing
a
gain
about
for
the
period.
Compared
with
a
year
ago
sales
were
even.
According to the Federal Reserve Board's index, department
store sales in New York
1950, show
no
an
advance of 2%
the similar week of 1949.
a
City for the weekly period to June 17,
change from the like period of last
Small
total
on a
the Federal Reserve Board's index
preceding week
con¬
figures
of last week and
196
similar week of prewar 1939 when 310 failures were reported.
siderably
remained
with wide¬
last week
of
5%
The week's total compares with a combined output of 153,001
units produced in the United States and Canada in the like 1949
.
of trade.
bought
last week than in the
above
the previous weeks' total of 204/704
Total
1949
mer
June 17, motor vehicle production in the United States and Canada
advanced
cars
volume
in
levels by the following percentages:
increase of
15-3,329 cars, or
corresponding week in 1949, but a decrease of
11.1%, below the comparable period in 1948.
Auto
•
represented
the
above
100,951 cars,
total
week
promotions of summer merchandise partly responsible for
the increase in sales
volume, states Dun & Bradstreet, Inc., in its
The
preceding week.
;
Slightly for Week
consumer
spread
demand.
Carloadings Score 24.1% Advance Above Year Ago
the
Spring
in five weeks.
current summary
90,614,000 kwh. higher than the figure reported for the
previous week, 636,119,000 kwh., or 11.6%, above the total output
for the week ended June 25, 1949, and 845,590,000 kwh. in excess of
the, output reported for the corresponding period two years ago.
casualties
Financial Chronicle)
prices
touching new seasonal highs early in the week, cotton
prices trended steadily downward to register the first net
declines
was
.totaled
soybeans.
Hog prices
moderately higher for the week following
Retail and Wholesale Trade
Up
occurred, but they remained above the 111 in the comparable 1948
week.
Less than half as many businesses succumbed as in the
King & Co. Adds
-
.
Waddell
were
slightly above the level for the similar
It
and
.
Output this week reached
Chronicle).
PEORIA, 111.—Joseph P.
III
Cattle
lambs developed
by the electric
industry for the week ended June 24
power
at
electrical
Domestic lard prices moved irregu¬
rather sharp dip at mid-week.
Electric Output Hits New Historical Peak
week.
to
Closing values
a
week
operating ratie of steel companies having 94% of the steelmaking capacity for the entire industry will be 101.2% of capacity
for the week beginning June 19, 1950, unchanged from last week.
of
prices.
After
that the
amount
prices trending up¬
Liquidation in the July lard contract was a feature.
fluctuated unevenly in the Chicago livestock market.
price trend in steel is still up, although a general base
price increase is still not expected in the immediate future.
,/
Steel Institute
active with
more
larly lower in sympathy with weakness in grains
The
and
in green coffee
creases
expected to fall
are
was
Leading coffee roasters announced an advance of two cents
pound in their wholesale prices, a reflection of the recent
in¬
a
is glowing sales reports. Most
new all-time production peak
during August.
The
710,156,000 bushels, about 20.000,000 bushels
forecast, but about 190,000,000 bushels short of the
ward.
They are
of steel consumption in Detroit is continu¬
ing. It is now evident that auto production will tail off for model
changes later than usual this year with an average delay of about
Iron
slow,
,
The record tempo
The American
harvesting
at
Trading in coffee
having difficulty getting steel and are resorting to conversion and
premium priced steel where the profit margin on finished products
permits.
noticeably,
for
Although firm at times, prices for corn worked lower due to
larger offerings and good growing weather.
Export business in
corn
remained in small volume.
Oats weakened on reports of
competition from Argentine offerings at prices
considerably below
the relatively high domestic market.
;
fabricators are predicting one of the best years
history of the industry. Some of them face order backlogs
extending from two to five months. Fabricators other than struc¬
two months.
weather
bars
and
the
Structural
tural
favorable
Chicago held comparatively steady with few
Export trade and inquiry in wheat was rela¬
reflecting more favorable European crop propects.
above the May
1949 harvest.
in
Joins Waddell & Reed
CSpccial
tively
in the
fetish; that the maximum for
consumer-
has
yields and
The June 1 estimate of the
Department of Agriculture placed the
winter wheat crop at
are still under quota control on a
pipe producers are sold out for the
year, except for tonnage held back for jobbers
allotments. Orders for first quarter delivery on
buttweld, lapweld
and seamless are now being taken, declares this trade
paper.
month-to-month
■
'
bar
expected crop
trending easier
indicating higher
growing.
Cash wheat
are
Cold-finished
ever.
markets
were
unsettled
with prices
as a result of recent government forecasts
actual sales noted.
are
hammering out some new records of
consuming steel faster than ever before in his¬
The pressure for hot- and cold-rolled sheets is as intense as
now
to
fixed
$300
is
it
and
customers
and
own
students of
that
unrealistic
Grain
89,641,000 tons produced in the war year of 1944 and it
has a good chance to reach the mythical 90 million
ton-year for
the first time in history.
Steel plant expansions and additions
are
multiplying so fast that by the end of next year total ca¬
pacity will be in excess of 104 million tons, the magazine notes.
Loading of
discarding of the old
$300 maximum loan limit princi¬
ple, sacred in small loan theory
time it stood at 241.59.
major basic industry can meet any
that might be made upon it. Even
allowing for summer
shutdowns the industry is threatening to surpass its best
previous
y
sion that the
Fluctuations in leading
commodity markets were irregular last
week.
The daily wholesale
commodity price index, compiled by
Dun &
Bradstreet, Inc., trended downward most of the week, but
turned higher toward the close to finish at 265.43 on
June 20, or
about unchanged from the 265.46 of a week
ago.
Last year at this
doubt that the country's
no
pe¬
All of this leads to the conclu-
.
Commodity Price Index Reflects Irregular Trend
;
finance
consumer
may
final
in
demand
high level
under today's
to stand at $5.96 as of June
20. This represented an advance of
4.9% above the 1949 level of $5.68.
The index represents the sum total
of the price per pound of
31 foods in general use.
t ■■
•
industry had reached its highest production and
capacity level in history, states "The Iron Age," national metalworking weekly, in its current summary of the steel trade: There
put totaled 6,062,095,000 kwh.
desirable
than
Slightly Upward in Week
Following last week's rather sharp dip, the wholesale food
price index, compiled by Dun & Bradstreet,
Inc., rose two cents
midst of international uneasiness this week the Amer¬
and
<
Food Price Index Turns
steel
have
T
casualties
more
11th Week
higher
loan
maximums
or
provided
for
smaller
in?
creases than are socially necessary
''
had
groups
ican
The solution is, of course, neither
1
Failures of all sizes except
numerous in
May than in
Output Set at Record Level
for
operation.
;
more
.
Steel
their
sumer finance companies, which
for a generation have constituted
were
slightly below their corresponding
1949 total.
All lines had fewer failures than last
year with the
Pacific States accounting
principally for the weekly decrease.
Industry
April.
Steel's
V
i
established.
was
$100,000
offices
intervention
social
of
excess
last six months.
separate
The
on.
so
The week's decline appeared in all
industry and trade groups
except manufacturing.
Against the general decline, manufactur¬
ing casualties rose, but were
previous month, but only the smaller casualties having lia¬
bilities under $25,000 exceeded last
year's level.
Concerns failing
with liabilities less than $5,000 rose to their
highest total in the
of the company and the offices of
the
subsidiaries, make
reports, and
5
the
ganize subsidiary companies, keep
separate and different kinds, of
books and
page
The State of Trade and
submitted
to
from
in¬
expense
39
decrease of 1%
was
(revised)
was
year.
In the
registered from
For the four weeks ended June
17, 1950,
reported from the like week of last year.
For the year to date volume decreased by 5%.
40
(2700)
The Commercial and Financial Chronicle
The
Indications of Current
following statistical tabulations
latest week
Business Activity
week
month available.
or
month ended
or
on
%
Latest
IRON
AMERICAN
Indicated
steel
AND
July 2
Previous
Month
Week
Ago
ingots
101.2
101.5
and
castings <net
tons)—
July 2
—
1,929.100
1,929,100
1.934,900
Crude
stills
to
Gasoline
output
Kerosene
output
Gas,
daily
—
and
distillate
Residual
fuel
oil
(bbls. of
average
/
1,473,000
ASSOCIATION
*
oil
OF
4,922,450
5,171,000
Total gas
19,034,000
19,029,000
Natural
2.033.000
1.916,000
18,580,000
2.140,000
17,998,000
June 17
June 17
7,065,000
6,961,000
7.068,000
5,228,000
7,467.000
7,307,000
7,435.000
freight
freight received
loaded
June
at
17//
1.530.000
of
April
Total
Mixed
116,374,000
119,249,000
124,669.000
116,403,000
19,507,000
18.499.000
45.230,000
14.648,000
39.432,000
22.504,000
48,039.000
of
40,740,000
39,192,000
39,330,000
805.680
795.852
743,307
649.351
655,076
637,154
655,938
of
Public
576,465
-June 17
cars;
OF
ENGINEERING
—
(U.
$277,411,000
$291,190,000
$215,170,000
June 22
——
$256,200,000
141,592,000
180,447,000
159,839.000
84.840,000
June 22
BUREAU
131,351.000
303
303
3,313,843
$141,650,000
$157,392,000
$118,469,000
57,661.000
47,055,000
44,450,000
8,539,000
9,260,000
6,713.000
8,466,000
6,380.000
23.000
25,000
27,389,000
OUT¬
RESERVE
of
•303
•4,237,277
BANK
May 31:
1
shipments
63.579,000
67,772,000
10.515.000
*10.605,000
9,610,000
2,190,000
886,000
863,000
979.000
121,000
137,600
106,100
19,700
SALES
302
275
..June 17
INDEX- -FEDERAL
RESERVE
output
shipped
between
IN
URBAN
.S.
April
DEPT.
(QOO's
PERMIT
AREAS
OF
OF
LABOR
12,381,000
$236,794,000
$194,585,000
VALUA-
THE
U.
Month
—
14,596,000
$231,149,000
—
:
;
' '
building construction
$913,711
•563,873
*205,704
New
residential
alterations,
etc
87.613
———
kwh.)—
000
..June 24
BUSINESS
6,102,288
6,011,674
5,393.732
5,466,169
FAILURES—DUN
INC.—Month
of
&
178
214
196
197
—
Total
number
3.837C
3.837c
3.705c
$46.38
$46.38
$46.33
$45.91
Manufacturing
$39.58
$34.17
$20,25
Wholesale
.
(E.
M.
&
-
Straits
tin
;
Lead
Lead
(St,
York)
York)
Louis)
QUOTATIONS):
liabilities
.June 21
22.200c
22.200c
20.200c
15,700c
22.425c
22.425c
20.425c
76.875c
78.000c
77.500c
103.000c
at—
Total
service
PRICE
INDEX
FOR
12.000c
12.000c
12.000c
12.000c
INCOME
11.800c
11.300c
11.850c
12.000c
1935-1949=100—As of April
DAILY*
15-OCOc
15.000c
items
foods
Meats
IN
101.95
102.18
102.57
101.72
115.24
115.63
115.63
113.12
120.84
120.63
119.00
Eggs
119.C0
119.20
119.20
-June 27
115.04
115.24
115.24
112.37
103.34
104.43
107.44
107.98
-June 27
109.97
110.52
110.70
116.61
116.61
116.80
119.61
120.02
120.02
117.40
2.31
'
and
Gas
2.89
2.87
2.87
3.00
House
2.63
2.61
2.62
2.70
;;
2.69
2.69
2.89
3.04
2.90
2.89
3.31
3.28'
3.26
3.48
DUN
June 27
3.17
3.14
3.13
3.30
2.81
2.65
2.65
2.73
395.2
333.2
333.2
•
of
205,526
209,448
.June 17
220,548
193,546
209,234
214.497
X
150,021
94
92
spindle
DEPARTMENT
ERAL
78
400,731
353,627
254,033
97.2
DEALERS
FOR
AND
THE ODD-LOT
SPECIALISTS
Odd-lot sales by dealers
Number of orders
:
INC.
hours
Dollar
■*.'
value
ACCOUNT
THE
N.
OF
Y.
per
Customers'
short
place
DISTRICT,
OF
BANK
N.
(average
daily),
23,113,000
23,782.000
20,048,000
19,862,000
8,935,000
8,764,000
7,358,000
473
473
325
221
•227
May
FED¬
FEDERAL
Y. —1935-1939
of
monthly),
(average
23,101,000
20,229,000
—
May—
SALES—SECOND
RESERVE
120.6
May:
unadjusted—.—
226
unadjusted—
221
225
*231
(average daily.), seasonally adjustedStocks, unadjusted
•——
226
235
*236
231
237
*229
228
230
*226
182.373
♦152,429
116,975
157,189
♦161,335
171,lot
$56.89
Sales
123.1
other
COMMISSION:
of
CAN
June'10
Customers'
short
Customers'
other
Dollar
value
Round-lot
Number
34,629
WHOLESALE
'I"
"
__
33,832
June 10
-IHI—Ijune
—
994,556
611,770
952,605
7,730
604,040
6,118
946,487
$39,737,085,
$24,267,510
$36,163,276
june l0
$16,268,719
U.
S.
DEPT. OF
342.130
175,300
342,130
243.570
175I306
190,010
319,910
3191910
151,810
253,740
216.320
3
*$53.83
•59.78
56.86
*53.08
43.35
39.7
39.7
Durable
38.3
40.3
goods
37.6
X *$1,424
*$1,401
*1.487
*1.467
1.357
goods
39.0
*39.2
1.496
—
*40.2
38.5
$1,433
—
Hourly earningsAll manufacturing
ARD
June 2Q
,
commodities
other
than farm
metal
and
^Revised figure.
._~I
foods
"
167.3
170.9
156.4
222.5
220.3
•1.354
161.0
160.7
159.5
♦1.321
278,645
292,664
222,850
Illncludes 432,000 barrels
239.2
Jnnp
234.3
220.9
148.3
148.3
147.6
145.4
135.9
135.8
"311
of
CLEANER
M.4NU-
135.6
139.2
■;;;
FACTURERS ASSN.)—Month of May:
Factory sales
LIFE
(number of
INSURANCE
OF
LIFE
(000's
units)
PURCHASES
INSURANCE
—
—
.
INSTITUTE
Month
of
.
May
omitted)—
Ordinary
^0
133.1
133.0
132.8
$1,462,000
$1,352,000
129.9
Industrial
$1,256,000
173.0
173.2
479,000
171.0
445,000
167.0
431,000
Group
332,000
374,000
174,000-
$2,273,000
$2,171,000
$1,861,000
June 20
products
CLEANERS—STAND¬
(VACUUM
June 20
~™~
■
VACUUM
SIZE
206.7
162.5
June
—
153.5
165.3
224.0
241.5
I
I
products
allied
156.1
168.7^
Tnnp
and
materials
materials
156.7
164.5
167.9
June 20
—
157.1
166.2
Juns 2Q
—
;—
products
and lighting
and
,
1""
Textile
Chemicais
•$56.53
61.04
52.24
Nondurable goods ;
June 2Q
i:
Meats
Metals
1
goods
manufacturing
Durable goods
HOUSEHOLD
Livestock
Building
OF
Hours—
commodities
Fuel
DEPT.
Nondurable goods
157,870
June 20
All
S.
April:
,
Grains
.
of
LABOR—
Farm products
•;
HOURS—WEEKLY
All
'
All
Durable
12,419
Nondurable
—
AND
ESTIMATE —U.
LABOR—Month
498,559
estimated
(tonnage)
Earnings—
All manufacturing
510,978
11,038
983,518
lo
June 10
SERIES
CONSTRUC-
(tonnage)—estimated
AVERAGE
315
17,702
Tlinp ln
.
(AMERI-\
May:
closed
Shipments
18.017
172
-IllllllUZIIjSne 10
—
STEEL
OF
of
Contracts
FACTORY EARNINGS
•.
33,660
10
;
shares
1926=100:
-
203
10
NEW
*
21,841
dealers-
PRICES
■
321
purchases by dealers—
Number of
22,044
'
20.270
34,308
"IIIIIIIIJune
sales
INSTITUTE
STEEL
$19,944,215
29.282
jUne 10
sales
Round-lot
$38,005,059
-sales—-Ill-June
sales
Othei
567,955
$26,356,196
June 10
sales
__
Short
895,211
$41,289,592
19,784
-
shares—Total sales
of
606.152
June 10
total
—
sales by
29,623
904,850
June 10
shares—Customers'
adjusted
STRUCTURAL
TION—Month
sales
sales—.
Number
seasonally
FABRICATED
sales-
Customers'
-
299.3
Stocks
120.3
ODD-
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
T
309.4
STOCK
;
—
191.9
154.6
305.6
spindle in
Sales
June 10
total
140.5
135.4
155.0
(1935-1939=
omitted)
(OOO's
AVERAGE=100—Month
(customers' purchases)—
shares—Customers'
of
'Number
ON
EXCHANGE
96.8
187.8
185.6
——
LOT
97.1
194.4
146.6
154.3
—
:
Sales
EXCHANGE—SECURITIES
120.3
137.4
(DEPT. OF COMMERCE):
STORE
RESERVE
INDEX—1926-36
120.6
STOCK TRANSACTIONS
122.9
140.9
195.6
—
Spinning spindles in place on May 27
Spinning spindles active on May 27—
167,196
93
395,147
PRICE
.
May
Active spindle hrs.
(tons)
REPORTER
192.5
123.1
141.4
,
„■
BRADSTREET,
&
COTTON SPINNING
ASSOCIATION:
-June 17
DRUG
176.2
185.0
CONSUMER PURCHASES OF COMMODITIES-
Active
AND
149.8
176.9
185.1
2.93
401.0
PAINT
134.2
175.2
——
_———
100)—Month
2.82
2.67
OIL,
135.2
—
2.78
2.82
orders
208 .a
....
furnishings
-June 27
Unfilled
311.6
—
<„■.
Miscellaneous
2.70
Group
(tons)
307.6
-
184.9
146.6
-June 27
received
218.6
electricity—„———
-June 27
Orders
195.2
Ice
-June 27
PAPERBOARD
183.8
200.5
;
_
-June 27
NATIONAL
234.4
182.4
150.2
—
Rent;.'—i--—:—
2.37
227.3
150.5
—
—
Other luels
2.34
170.3
227.9
vegetables——
Sugar and sweets
-
2.35
202.8
169.0
—
Fuel, electricity and refrigerators
-June 27
169.7
196.0
169.3
———
and
Clothing
AVERAGES:
167.0
196.6
—
179.3
—
,
and oils
Fats
114.46
June 27
167.3
Beverages
107.62
.June 27
V
—
Fruits
117.40
-June 27
Baa
1.599,000
$24,583,000
CITIES
:
products.—.
Dairy products
120.43
.
15:
—*.
bakery
-June 27
Aaa
$21,250,000
—
and
June 27
DAILY
1,434.000
819,000
4,334.000
MODERATE
LARGE
——
-June 27
YIELD
6,034.000
1,465,000
'-'1,474.000
—-—
.
Cereals
AVERAGES:
Baa
$11,182,000
7,179,000
.
9.000c
June 21
FAMILIES
-June 27
Railroad
53
775
$7,980,000
3.807,000
$22,672,000
11.800c
at
PRICES
—
liabilities
CONSUMER
'
2,129.000
liabilities—
.June 21
--—
iv
2,949.000
—
.June 21
at
All
BOND
63
..
8.650.000
—
15.925c
June 21
—
All
MOODY'S
806
$7,470,000
-
—
liabilities
Commercial
.June 21
,
at
(East St. Louis)
MOODY'S BOND
44
874
————
,4v
*
Zinc
101
351
76
62
—
liabilities
Construction
at_———
(New
(New
,
J.
v*- ;1''';
at
rexinery
202
93
398
30
liabilities
Retail
Electrolytic copper—
195
109
—
$39.00
_June 20
refinery
83,825
PRICES:
3.837c
Domestic
204,500
426
———————————
Retail number
Commercial service number—
AGE COMPOSITE
Export
'.jj,,
BRADSTREET,
Construction number
PRICES
>
May:
Wholesale number
147
*
•86,041
$642,385
354,060
•:
INSTITUTE:
(in
i-
METAL
/
>
*$355,618
596,303
New nonresidential ,———234,795
235
/
S.
of
omitted):
Manufacturing number
IRON
10,516,000
16,558.000
—
CONSTRUCTION
TION
—U.
SYS
>-
AVERAGE=100
ELECTRIC
Electric
and
countries
Total
Additions,
EDISON
credits
stored
goods
foreign
46,367,000
All
STORE
TEM—1935-89
on
BUILDING
Pennsylvania
Beehive coke (tons)
DEPARTMENT
warehouse
exchange
Based
MINES):
lignite (tons')—;
anthracite (tons)
_
83.963,000
21,417,000
Dollar
130.330,000
75.547.000
26,010.000
302
OF
96,964,000
88,598.000
130.400
S.
114,608.000
June 22
June 22
1
and
coal
98,555
3,910,770
ACCEPTANCES
FEDERAL
—
1
Domestic
June 22
—
Bituminous
2,626,031
200,450
133,686
ASSOCIATION—
YORK—As
Imports
NEHS-
municipal—
OUTPUT
COAL
2,925.045
252,601
126,269
therms)
(M
DOLLAR
NEW
Domestic
and
4,215,314
3,829,027
219,483
April:
STANDING
of
construction
State
11,746
3,487,520
therms)
<M
motor carriers reporting.,
freight transported (tonsi
of
BANKERS
(number
sales
TRUCKING
Month
Volume
65,594,000
June 17
cars)
from connections
CONSTRUCTION
Federal
-
54,076
11,623
Montli
For
—
therms)
(M
gas
sales
gas
Number of
61,445,000
RAILROADS:
(number
construction
Private
58,747
13.637
3,833,277
ASSOCIATION
sales
gas
AMERICAN
June 17
construction
S.
U.
Ago
58,024
(short tons) end of April
(M therms)
Manufactured
RECORD:
*,
Year
Month
the U. S.
Exports
ENGINEERING
CIVIL
Previous
MINES)—
7,693,000
at—
AMERICAN
Revenue
GAS
5.117,250
5,477,000
(bbls.)
(bbls.)——_
Revenue
.
of that date:
April:
5,305.450
5,524,000
fuel oil output
(bbls.)
of
5.347,400
t!5,565,000
—June 17
—•.
oil, and distillate fuel oil (bbls.)
fuel
aluminum
June 17
—
Gas,
of
AMERICAN
42
—
output
—June 17
Stocks at refineries, at bulk terminals, in transit and in pipe linesFinished and unfinished gasoline
(bbls.) at.——
June 17
Kerosene
(bbls.)
at—
1—
——-June 17
Residual
OF
(in short tons)—Month
June 17
(bbls.),—
average
(bbls.)_——,
(bbls.),
oil,
are as
INSTITUTE:
PETROLEUM
runs
either for the
Latest
(BUREAU
Production of primary aluminum in
Crude oil and condensate output'—daily
gallons each)
V
of quotations,
cases
are
Month
ALUMINUM
79.9
Stock
AMERICAN
in
or,
Ago
101.2
Equivalent to—
Steel
Dates shown in first column
Year
Week
INSTITUTE:
STEEL
operations (percent of capacity)
production and other figures for the
cover
that date,
Thursday, June 29,1950
...
II~~June
foreign crude
20
201.0
200.7
198.5
113.9
190.1
114.1
116.2
116.2
Total
runs.
"Revised.
I
yolume 171
-Number 4920
.
The Commercial and Financial Chronicle
..
Continued from
page 16
<4'
other
features, aluminum window pared by this Association's Build¬
no
painting.
ing Planning Service Council, en¬
irames need
But
Over-Building of
the
new buildings that cannot be
adapted to old buildings at any
price is their basic planning. They
provide large blocks of space on
Office Structures
amount
paid in taxes
was
cant space
on
va¬
that exceeded the 10%
level!
during that trying 13-year
period, when vacancies averaged
far above 10%, the total tax bill
unrented
on
offices in
buildings amounted
$70,000,000. This
is
these
to
test
almost
penalty for over¬
In May, 1934, figuring
the conservative rental rate of
$2
per
more
foot,
square
those with
lion
the
larger
cities—
than half
more
population,
with their space
than smaller cities have.
Among
cities, 73% reported hav¬
ing reached a balanced supply of
which
was
office space.
Seven per cent
were
already overbuilt, and only the re¬
maining 20% still reported short¬
less the
or
prevailing aver¬ ages.
those buildings
Yet, the building boom appears
■were losing
$27,355,000 on their to be continuing full steam ahead.
rent rolls and
paying out $7,557,- J. Clydesdale Cushman gave you
that time,
at
age
000
in
taxes
unrented
on
space.
This meant
the
clearest
idea of the boom
a total annual deficit
of $35,000,000 without
figuring in¬
terest and other fixed charges. It's
a wonder that any
private owner¬
Monday. His latest poll of the
ship survived.
These
To
plot
our
today
course
on
the
basis of these past experiences
is
certainly just plain prudence.
an
annual
Association
Monte, Calif.
report
to
this
convention
in
that 38
cities
have
now
buildings completed
represent
ment of close to
126
new
total
$520,000,000. The
being pro¬
total amount of
space
at
is
square
feet—approximately equal
than
more
to the combined
20,000,000
phia, Pittsburgh, Baltimore
this Washington, D. C.
As President of
Association at that time, I stated:
'T have faith in real estate and
elevator
and
great
glass areas,
space,
new
ana
right.
ings." This excellent presentation
up this entire problem in a
sensible
sums
nutshell. It says:
"Constructing
today costs about $25
foot
New York's Fifth
has
self-service
Avenue,
even
elevators for
use
Saturdays and after hours. This
may be writing on the wall for
on
elevator operators who leave ten¬
ants stranded during a strike.
Deeper floor
other
developments in design, result in
as
much as
80% of net usable
space
the
areas, among
compared
as
buildings
tional
20
that
years
with
were
65%
in
per
setups?
attracted
are
conven¬
Yet, rental rates
such
to
the
York
location
any
hit the
cannot
of
exceptional
square foot.
score
There is
launched
with
$10 differential,
become
can
building;
rentals
the
and
amortization of
But
than
mod¬
of
But the first hurdle in
any such
is
program
I
to
recently discussed
bilities
of
York.
My
subject
a
an
possi¬
in
mention
mere
brought
forth
New
the
of
irate
an
of
several
adjacent
the
owner
to
financial district.
He
building which is
a
been
in
that
building
for
over 10 years. Each merchant has
Building Inflation those rates were
to $4.50 for the same floors.
his own stand or office, many of
coupled with
On the other hand, an ace in them
ioned enough to believe that real the housing boom, is
tiny, but they have devel¬
approaching
location and all other factors, with
oped an interplay associated with
property is worth no more than new inflation in the opinion of the
one year's head
start, brought ren¬ a common trade and interest. And
it can earn over a term of
years." most astute economists. They
tals
such
as
these:
$70,000 for we
have
That holds today just as well as point out that the overall urban
many
buildings
like
10,600 square feet; $50,000 for that."
it applied before we went through mortgage debt has increased al¬
7,200 square feet, and so on.
the depression.
It means 13 lean most 100% in the past five years.
Then he continued, "The rem¬
And rental policies have under¬
In 1945 it stood at $31,000,000,000.
years with 13 fat years.
edy is not at all in the moderniza¬
gone a big change since the war.
tion, as you call it, of buildings
Today, because building costs Today it is $60,000,000,000. At the For a time—and
undoubtedly in that are
are
thoroughly modern al¬
higher than we could have present rate of construction and some cities
you still do it — we
ready, but which lack gadgets of
imagined in the 1920's, rents in financing the mortgage debt will could leave
partitioning and other one kind or
the newer buildings are
another, the remedy
ranging top $70,000,000,000 by the end of space planning up to the tenant.
next year.
lies in the lending institutions re¬
high.
Even when you consider
That has changed now. The newer
It has been calculated that this
the 1950 dollar in comparison with
alizing that the larger part of
buildings
include
partitioning, their investments
figured
on
a
are
the prewar dollar, the spread be¬ debt,
per-family
already in
electric light fixtures, the older
basis and adjusted to modern price painting,
tween new-building rentals and
buildings, which contain
and Venetian blinds in the deal.
the rents in established
60,000,000 square feet, as against
buildings levels, is now very close to the It used to be that the cost of
par¬ the
is much greater than it was in the peak of expanded credit that we
golden mirage of the new
had reached at the end of the titioning would figure out around 6.000,000
late '20's. This is one danger signal.
square
feet
with
the
$1 per square foot. Today it runs
boom of the 1920's.
Any sudden
glamor of the new mortgage and
In Chicago, Leo J. Sheridan was
around $4.
By the time you in¬ the
new
drop in employment or income
commissions, and so
recently
quoted
on
what
new
clude Venetian blinds and the rest
could create a critical credit sit¬
forth."
of the services you have an ex¬
buildings should earn in order to uation. So
here we have another
Now here you have a state of
yield a conservative return on in¬
pense of $5 per square foot—or
danger signal in the financing of
mind to cope with. But you also
vestments.
He estimated that an
virtually a year's rent.
new construction.
have a real clue to the solution of
average
of $6 per square foot
One new building is advertising
It is true that the bondholders
the problem.
would be required on a basis of
that the management will assist in
of the 1920 s are not in the picture
90% occupancy. I am told that he
True
modernization
does
not
planning the most efficient use of
But what is the ultimate the
figured this on construction costs today.
tenant's
floor
space.
This mean gadgets. It does not mean
its
possibilities, but I
of $1.50
$1.75 per
to
Approaching
This
old fash¬
am
expansion,
difference
cubic foot.
and
Well, in New York, where costs
actually have turned out to be
a
a
between
bondholder
a
policy holder-—or between
a
bondholder
and
special architectural
means
serv¬
ice.
depositor?
whether they
a
I took part in
Large operations,
breaking office building owners
$1.10 and more per cubic foot,
entail
new
construction
or
the
some
of the new buildings will
away from supplying light to ten¬
maintenance of established prop¬ ants.
Today that practice is back
average
a
bit less than $5 per
erties, necessarily involve other again. An insurance
company in
square foot.
people's money. Definite respon¬ New York is
supplying light to
sibilities of public relationship and
The Chicago Situation
tenants in its new building.
socio-moral obligations are inher¬
Some years ago the Real Estate
The significance of the Chicago
ent in financing today.
Board of New York established a
situation
by
recently was summed up
Homer Hoyt and Morton
Dr.
Bodfish
in
follows:
"Since
joint
a
statement
in
space
as
to
secure
sufficient rentals
buildings to yield
the
investment.
a
on
fair return
competition of
more
office
even
the
rental
average
and
increase
in
The
final
space
older
vacancies
effect would
be to push all office building in¬
come below
present high operat¬
ing COStS."
r
'
These expert observers conclude
that there is
no
economic
justifi¬
cation for additional office build¬
repeat exactly what
can
in that 1926 report:
"What
we
production,
want to
standard
ago
practice
under
which
would be included
corridor space
stop is over¬
because
years
there
is
a
in
rentable
the
is
counted
not
selfish
a
desire
to
protect
buildings, but to protect
our
entire communities."
;
our
"1
■
In the light of all this past ex¬
perience,
why
erecting
do
we
office
more
keep on
buildings?
The answer, of course, is that we
can rent them.
Even under cur¬
rently high construction costs, we
rent them
can
And why?
ings
at
higher rates.
again—so
of
One
the
that must
be
today
space
in
the
mid-Century
meaning
of
that
word. Primarily they are air con¬
ditioned—climate controlled, they
call it. The air conditioning plant
is
the
capita
trend
office
Old
Building
in
4.6%
1934!
Today
averages
1925
they
to
are
jumped
29.2%
in
reported
around 2%.
And the
picture is not
so
A
vastly
poll of
cities
space
recently showed office
already balancing demand
in 50%
of the cities.
below
York's
some
of
newest
the
older
buildings.
different in other cities.
470
40%
New
The supply
Air
dust
conditioning,' minimizing
and
soot,
labor savings.
sidewalks
snow
and
results in
Radiant heat under
-saves
ice
definite
more
removal.
labor
in
Among
Owners
Must
what
from
new
do
can
buildings? Suppose va¬
not show signs of in¬
creasing quickly. This could mean
a
level of busi¬
that would
justify still more
new
buildings. This would mean
still more competition for owners
and managers of older buildings.
So what can they do about it?
ness
They can and must modernize.
Undoubtedly most of you have
read
the
treatment—which
cal
handsome
booklet
and
the
pre¬
is
an
economi¬
of
ceiling. And it
a
individual
aid
comfort
the
only
place
on
through
at¬
ization.
V
.
•'
•
•.
i
•
Thos, Graham Heads
Ky. Homecoming Com.
LOUISVILLE, Ky. — Thomas
Graham, Bankers Bond Co., is
Chairman
the
o
f
Home¬
coming
Com-
mittee
and
Kentucky'
Homecomi n g
Commission of
the
Kentucky
Chamber
f
o
Commerce
which
is
in
charge
of the
special
M i d-
century
pro-
being
by
g r a m
feat ured
;
the State. Pro¬
Thomas
re-
means
conditioning -for
that
grams are be¬
ing
planned
sites in
tenants
get
in
buildings.
And, as you all
probably
realize,
modernization
means
redecorating for
beauty
through simplicity—the style of
the times: new lighting, dressing
up
elevator
cabs
and
lobby,
streamlining and cleaning of ex¬
new
at
jrr
Graham
various
historic
Kentucky throughout the
and
summer
fall.
A copy
of the
official calendar of events may be
obtained
by
writing
to
Mr.
Graham.
Chase Bank Announces
New
Appointments
Arthur
Kunzinger,
2nd
Vice-
President in charge of the Madi¬
son
Avenue branch of the Chase
National
Bank,
board
of
by
directors.
After
he will be associated
of
agement
Trust
the
branch
July
in the
bank's
at
191
1
man¬
Hamilton
Montague
Street, Brooklyn.
At the same time, Burnett O
Doane, Gail F. Moulton, Paul EL
Ramsay and Joseph R. Thompson
received promotions to 2nd VicePresidents; John A. Collins, Harry
R. Fey, James L. Hoyt, Joseph J.
McGuire, Robert J.. Park to As¬
sistant
Cashiers,
Pender
to
the 11
and
Assistant
Broad
Joseph
Manager
T.
at
Street branch.
The following employees were
appointed to the official staff:
William
Heck,
B.
Bateman, Adam C.
S. Hejinian, Thomas
William J. Rieber and
John
Leonard,
Harold
V.
Sullivan,
Assistant
Cashiers; Milton J. Redlich and
Fred F. Voorhees, corporate trust
officers, and Charles J. Boylan.
Charles
L. Flynn and Philip W.
Smith, Assistant Managers in the
consumer credit department.
WitVi Cruttenden & Co.
(Special to The Financial Chronicle)
teriors.
Don't feel that you do not have
to do this because you have held
tenants
your
course
ants.
for
have
you
10
years.
Of
your
ten¬
held
Everyone
has. The past
have not been normal.
years
But, if you will do this you
a
more
effective brake
put
new
CHICAGO,
111. —Norman
C.
Bray has joined the staff of Crut¬
tenden
& Co., 209 South La Salle
Street, members of the New York
and
10
Midwest Stock Exchanges.
can
on
building than all the preach¬
can do to lending insti¬
you
tutions.
modernization
preaching
cannot
struction
wnich
when
with
for
build
and
large
their
your
new
stop
con¬
corporations
structures
own
they do not find
buildings
big enough for them.
modernization will hold
smaller tenants and thereby
space
But your
your
remove
a
demand for
new
build¬
However,
inhale
years
will
that
held
have
if
old
without lifting
see
&
sit back and
opiate that you
tenants for 10
you
your
a
finger, you
buildings
many more new
tempting
Model-T
Bonds of Organization—An Ap¬
praisal of Corporate Human Re¬
lations—E.
ings to house them.
: tenants
to
••
appointed a
the
bank's
was
Vice-President
chromium
a
profitable method
finishing
Your
the owner or
manager of an older building do
in the face
of this
competition
Now,
have
you- must
ceiling inK the lobby. But it does
mean
certain expedient renova¬
tions,
for
example,
acoustical
ing
Modernize
the attainment of
vacancy
from
Chi¬
the
Busi¬
space.
features, too—these buildings af¬
ford maintenance savings of 30 to
cago's
over-production.
of
role
machine.
are
directly re¬
decline in the per
in the requirement
cancies
in
factors
a
in
of
being
are
long-range
structures cost $1,600,000! Largely
because of this—and some other
one
actual
that
machines
ness
sponsible for
for
being
considered in office
business
modern
floor,
Because these build¬
modern—modern
are
in
foot
rentals
thrown off a bit.
square
ing in Chicago.
York's
a
not be in¬
cluded. Today toilet space is
an
That city has had
experience very similar to New
of
area
but toilet space would
great and grave danger in it. Ours
on
the
present
in
rates
buildings
them.
new
Moreover,
would
reduce
I said
existing
buildings is available at from $3
to $3.50 a square foot, with only
choice
space
bringing $4.75
a
square foot, it is hardly possible
I
And
Many
that
can
possible
as
-
old. Most of the tenants
years
have
the
modernization
said in part:
"We have
55
modernize
of mind.
downtown
attempted
lowered to $4.12
in
ernization."
a
that
we
new
more
the cost
buildings
was
the
as
increase
will
secured
frame
long
as
ex¬
the fixed charges on, and the
pay
older
to
invest¬
the qld building
modern
as
curb
overbuilding is through keeping
our older buildings in the running
^nd old
"But spending a portion of this
per
was
in
new
buildings that justifies capital
penditure for modernization.
from
visions of $4.50
renting
between
cost
convinced
am
difference of $10
foot.
letter
$6.95
$5 rentals for its lower half.
before
square
I
tractive and comfortable moden*-
this difference
high
building that
one
is
ment
on some
nev/est buildings in New
already are being adjusted
slightly.
Naturally,
anybody in
of
per
area.
area—a
square
"It
ago.
Is it any wonder that large cor¬
porations
rentable
rentable
ing, adjoining Rockefeller Center
on
of
building
new
a
"Buildings built in the late '20's
for fewer cost only $15 per
square-foot of
Crowell-Collier Build¬
splurge on Cadillac space even
though their old bus still runs all
titled "Blueprint for Better Build¬
automatic
new
arrangements
faster service.
and
The
total in Philadel¬
Del
waste
cars
sec¬
shows
under way.
invest¬
or
a
less
with
lighting, fewer courts
on
vided
In 1926 I had the honor of sub¬
mitting
retaries of this Association
better
mil¬
a
have caught up
needs even more
the big
the
building.
at
reported in 6% of the cities.
However,
floor
one
still considered short in 44%
of the cities.
And an oversupply
was
was
And
salient characteristic of
one
41
(2701)
Wight Bakke—Harper
Brothers, 49 East 33rd Street.
16, N. Y.—Cloth—$4.
New York
Taxes
—Lewis
ings
and
H.
Economic Incentives
Kimmel—The
Brook¬
Institution, Washington, D. C.
—Paper.
7,3
42
The Commercial and Financial Chronicle
(2702)
•
Aeroquip
Corp.,
filed
June 21
of which
16,455 shares
the remainder
I
held.
Mich.
Jackson,
(par $1),
offered by the company and
are
by 45 selling stockholders.
Underwriter
—Watling, Lerchen & Co., Detroit. Price—To be filed
by amendment. Proceeds—To pay for construction of a
new plant for
production and storage use. Business —
Flexible hose lines.
•
Air
Music, Inc., New York City
(letter of notification) 556 shares of 4% cumula¬
tive non-voting preferred stock with a bonus of 2,780
shares of no par common stock. Price—At par ($100 per
share) for preferred, each share being accompanied with
June 23
bonus
of
shares. Underwriter—None.
operations, and purchase additional
receivers and for working capital, etc.
Office—10 East
40th Street, New York 16, N. Y.
a
eight
June
stock, at $8.30
stockholders.
to
No
per
1,479 shares of ($2 par)
share, to be offered pro rata
underwriter.
Proceeds
to
construct
Office—1918 First Ave., North, Birming¬
improvements.
ham 3, Ala.
Allied
vertible
preferred stock
and 100,000 shares of
(par $6)
common stock
(par $1), to be offered in units of one
preferred share and one-half share of common at $7.50
share; remaining 20,000
per
common
shares at $4.50 per
Underwriter—Hill, Thompson & Co., New York
^share.
Proceeds—To repay bank loans and accounts pay¬
able, for machinery, equipment and other corporate pur¬
poses. Statement effective June 23. Expected after July 4.
City.
American
March
31
Cladmetals
Co.
build
Co., Pittsburgh and Graham, Ross & Co., Inc., New York,
Proceeds—To
ing capital.
Natural
Gas
Okla.
Co., Tulsa,
natural
a
gas
transmission
Office—105
line
N.
•
Bethany
June
19
stock
(W.
Va.)
at
transmission
tend
and
additional
install
facilities and for work¬
Statement effective June 22. Now being of¬
distribution
mains.
•
Bond
Investment
of America,
Trust
Boston,
Massachusetts
June
23
filed
150,000 units of beneficial
tributor—Colonial
Associates,
Investment company.
interest.
Boston.
Inc.,
Dis¬
Business—
stock
(par $1).
share).
stock.
writer—None.
ities
to
Price—At
($100
par
Proceeds—To
expand
business,
share).
per
Under¬
buy equipment and facil¬
to? buy
and
additional
mer¬
chandise.
•
Motorists
Insurance
selling stockholder.
Cameron
($8 per
(Wm.)
Pro¬
one new
share for each three held.
ceeds—For
general
Casualty insurance.
corporate
Price—At par.
purposes.
Pro¬
Business-
f
American Radio & Television, Inc., North Little
Rock, Ark.
June 16 (letter of notification) 301,686 shares of com¬
stock
mon
(par
10
cents).
Price—75
cents
per
share.
Underwriters—Gearhart,
Kinnard & Otis, New York
Proceeds—For additional working capital. Office
—Fifth and Cornish Streets, No. Little
Rock, Ark.
City.
American
Textile
Co., Inc., Pawtucket, R. I.
April 26 (letter of notification) 10,000 shares of common
capital stock (par $10). Price—$15 per share.
Under¬
writer—None.
Office—P.
O.
employees. Of the total offering, 91,333 shares
by the company and 29,500 by three stock¬
holders. Underwriter—Reynolds & Co., New York. Price
—To be filed by amendment on offering to public; $16.95
per share for stock to employees.
Proceeds—To reduce
will be sold
a
loan
and
for
Distributor of
general
Business—
corporate purposes.
building materials.
Canadian Superior Oil
June 27 filed
provide additional funds.
637, Pawtucket, R. I.
of California,
2,150,000 shares of
common
Ampal-American Palestine Trading Corp.
operations in
Canada.
Offering—Expected
about
mid-
Mining Corp., Ltd., Vancouver, B. C.
underwriter.
Proceeds—To
—
nomic resources of Israel.
Arkansas
Power
Shillinglaw,
Bolger
together with
company,
ore.
of
outstanding $6
preferred;
(b) the carrying forward of the company's construc¬
program.
Bids—Received by company up to noon
(EDT) on June 19, but rejected. Only one bid was made
i f $100,003
per share, with a $4.95 dividend from Lehman
Brothers, Equitable Securities Corp. and White, Weld &
Co. (jointly). Statement effective June 12.
Arkansas Western Gas Co.
Mev 2 (letter of notification) 28,948 shares of
common
sto k (par $6) to be offered at
$10 per share to holders
warrants at the rate
of
one
share for each nine
now
term
Proceeds—Proceeds to
loan of $1,000,000 from
Cincinnati
&
Suburban
of record
Bell
(par 50
•
,'
Telephone Co.
common
stock
May 26 at rate of
held; rights to expire July 3.
share).
per
Underwriter—None.
being offered
share for
one
Price—At
par
Proceeds—For
expansion and to reduce bank loans incurred
struction. Statement effective May 22.
for
Washington, D. C.
notification) 3,000 shares of class A
(par $12.50) and 1,000 shares of class B
stock (par 25 cents), to be sold in units of three
(letter of
stock
common
stock
and
Price—$44.50
unit.
Underwriter—Emory S. Warren
per
Co., Washington, D. C.
share of class B
one
stock.
Proceeds—For general funds.
W., Washington, D. C.
Citizens Telephone Co., Decatur, Ind.
April 27
(letter
of notification)
3,000
preferred
stock, non-convertible.
share). Underwriter—None.
per
additions
and
conversion
240 W. Monroe
•
Corp., New York City
June 16 (letter of notification) 85,000 shares of common
stock
(par 10 cents).
for1
per share;
Underwriter
sales, pay expenses and
Office—464 11th Avenue, New
Price—$3
Proceeds—To promote
—None.
working capital.
18, N. Y.
series A cumulative pre¬
convertible into common stock
prior to July 1, 1960, to be offered to common stock¬
holders of record July 12 on basis of one preferred share
filed 103,402 shares of
June 21
stock
ferred
(par $50)
to
Monte, Calif., and for additional working capital.
Expected in mid-July. '
First
Security Corp. of Nevada, Reno, Nev.
50,000 shares of common
Price—At
tracts and
other
for investment in
corporations.
First
Price—$5 per share. Under¬
buy instalment sales con¬
Proceeds—To
selected common
stocks of
Office—511 W. 3rd St., Reno, Nev.
Springfield Corp., Springfield, Mass.
May 29 (letter of notification) 5,471 shares of common
stock. Price—$15 per share.
Underwriter — Springfield
Springfield
Mortgage Corp.,
working capital.
Fleetwood
Airflow,
3, Mass.
Inc.,
Proceeds
—
Wilkes-Barre,
For
Pa.
April 20 (letter of notification) 79,050 shares of common
stock (par 50 cents) to be offered first to common stock¬
holders.
Price—$1 per share to stockholders and $1.25
public. Underwriter—None. Proceeds—For working
capital, remaining $28,000 being offered to six creditors
in payment of debt. Office—421 No. Pennsylvania Ave.,
to
Wilkes-Barre, Pa.
•
Founders Mutual
Depositor Corp., Denver, Colo.
certificates. Busi¬
June 26 filed six series of income plan
ness—Investment fund.
Front
Range Mines, Inc.
(7/6)
(letter of notification) 100,000 shares of common
capital stock
Price—$1.25 per share. Under¬
Co., New York. Proceeds
(par $1).
writer—Blair F. Claybaugh &
—For
operating capital.
Gatineau Power Co.,
Ottawa, Canada
May 26 filed 600,000 shares of no-par common stock, be¬
ing offered by International Hydro-Electric System, first
in exchange for International's matured and partially
retired
6%
debentures
(offer expired June 26)
and
public. Underwriters—Merrill Lynch, Pierce,
Kidder, Peabody & Co., and Harriman
Fenner & Beane;
par
($100
plant
Ripley
option
operations.
Office—
Co., Inc., will take 340,000 shares, with an
260,000. Price—$15.38xk per share. Proceeds—
To be applied to retirement on Aug. t, 1950 of all 6%
debentures not exchanged.
No proceeds to Gatineau.
&
on
Statement
Combustioneering Inc., Cincinnati, Ohio
ceeds—For offices and
equipment, expenses and working
capital.
Business—Research in field of smelting and
heating-treating of metals.
Power
at El
4%%
St., Decatur, Ind.
Consumers
rate. Underwriter —
Smith, Barney & Co., New York. Proceeds — To pay
promissory note, to complete purchase of a new plant
of
Proceeds—For
dial
Price—To be filed by
along with dividend
amendment,
then to the
shares
June 5 filed 30,000 shares of class A capital stock. Under¬
writer—None named as yet. Price—$100 a share. Pro¬
•
.
Even-Air
June 2
shares of class A
&
Proceeds — To pay bank loans and for
working capital. Business — Stainless steel plates and
Offering postponed.
'
con¬
Citizens Credit Corp.,
2
privilege.
by amendment.
'
,
,
May 2 filed 234,856 shares of
and
tion
Co.
.
Office—1707 Eye St., N.
shares
oversubscription
with
held,
sheets.
writer—None.
cents). Underwriter None. Price—$1 per share. Proceeds
—For exploration on 6,435 acres of copper, gold and
silver mining property in Cuba and mining and shipment
ferred
45,891
to
three
capital stock (par 10 cents).
(7/3-7)
Christina Mines, Inc., N. Y. City
May 24 filed 400,000 shares of common stock
Light Co.
May 23 filed 155,000 shares of cumulative preferred stock
(par $100). Proceeds—To be applitd to (a) redemption
on
Aug. 1, 1950, at $110 per share plus dividend ac¬
cruals, of all the 47,609 shares of outstanding $7 pre¬
and
each
June 14 (letter of notification)
insurance firm, will be used to pay existing long-term
obligations and the balance to be used as working capital.
($50
100,000 shares of capital stock (par $5) to
stockholders at the rate of one new share
filed
7
be offered
resources.
150,000 shares of common stock (par $1),
of which 50,000 shares are to be sold by company and
100,000 shares by three stockholders. Price—To be filed
by amendment. Underwriters—F. Eberstadt & Co. Inc.
June
&
mineral
Indefinite.
16 filed
common
oi
develop
Caspers Tin Plate Co., Chicago, III.
of
Eastern Stainless Steel Corp.
June
Fedders-Quigan Corp., Maspeth, L. I., N. Y.
Aug. 29 filed 1,000,000 shares of no par value common
stock.
Price—800,000 shares to be offered publicly at
80 cents per share; the remainder are registered as "bonus
shares."
Underwriter—Reported negotiating with new
June
Underwriter—None. Proceeds—For general funds.
develop oil and natural gas properties in
Co.)
for each 12 common shares held.
each three
jtipril 10 filed $3,000,000 of 10-year 3% sinking fund de¬
bentures.
Underwriter
Israel Securities Corp., New
York. Proceeds—To increase
working capital to be used
for enterprises in Israel.
Business—Developing the eco¬
$10,000,000 of notes, due 1960, with interest
in the first year, 2% in the second year, and
thereafter, and 249,993 shares of capital stock (par
$1). To be sold to 17 subscribers (including certain part¬
ners of Carl M. Loeb, Rhoades & Co., State Street Invest¬
ment Corp. and State Street Research & Management
1%
at
Ltd.
stock (par $1).
July.
stockholders
^
Ltd.,
York
Price—To be filed by amendment. Underwriter—Dillon,
Read & Co. Inc.
Proceeds—For geological and drilling
Proceeds—To
Box
(Western)
Underwriters-Allen & Co., New York. Price—To be filed
(7/12)
Co.
fered to
and
•
Exploration
Toronto, Canada
Jan. 30 filed
for
June 14 filed 179,833 shares of capital stock (par $7), of
which 120,833 will be sold to the public and 59,000 of¬
Co., Chicago
Jiine 28 filed 100,000 shares of capital stock (par $5) to
be offered to stockholders of record
July 25 at rate of
Dome
common-
Price—At approximate market
Statement effective Dec. 9.
American
Office—2030 Hartford Road, Baltimore, Md.
capital.
Western Canada.
1,000 shares of
Underwriter—Lamont & Co., Boston, Mass.
ceeds—To
American
ferred
Dairies,
(letter of notification)
Business—To
/
Botany Mills, Inc.
June 19 (letter of notification)
Canam
Equipment Co., Inc., Atlanta, Ga.
June 16 (letter of notification) 500 shares of 5%% pre¬
Inc., Baltimore, Md.
500 shares of 6% series
B cumulative preferred stock ($100 par) and 500 shares
of common stock (par $10). Price—Par for preferred and
$20 per share for common. Underwriter—None. Proceeds
—To finance alterations and provide additional working
19
3%
fered.
•
Delvale
•
Improvement Association
(letter of notification) 933 shares of common
$z5 oer snare. No unaerwriter. Proceeds to ex¬
ADDITIONS
SINCE PREVIOUS ISSUE
June
Boulder, Tulsa, Okla.
•
filed
480,000 shares of common stock (par
Price—$1.50 per share. Underwriter—Graham &
$1).
Associated
Electric
Products, Inc. (7/5)
May 24 filed 160,000 shares of 45 cent cumulative con¬
;
Office
Gas
Corp.
(letter of notification)
12
common
Proceeds for construction.
Street, Fayetteville, Ark.
March 14 (letter of notification) 2,500 snares of common
stock at $100 per share.
No underwriter. Proceeds to
common
Proceeds—To expand
Alabama
No underwriter.
—28 E. Center
162,010 shares of common stock
Thursday, June 29,1950
INDICATES
•
Securities Now in Registration
...
effective June
14.
Finance Corp.,
General
Chicago, III.
May 26 (letter of notification) 50,000 shares of common
stock (par $1) to be offered to employees.
Price—$5.75
per share.
Underwriter—None. Proceeds—For working
capital. Office—184 West Lake St., Chicago 1, 111.
Co., Jackson, Mich.
Radiant
General
Heater Co.,
Inc.
June 23 filed 499,903 shares of common stock
(no par)
to be offered present holders at the rate of one new
share for each 10 held on July 12. Underwriter—To be
May 3 filed 170,000 shares of common stock (par 250).
Price—$3 per share. Underwriter—Mercer Hicks Corp.,
New York. Proceeds—For plant and warehouse, adver¬
named in
tising research, working capital, etc. Expected any day.
months
stock
an
ago
to
amendment, along with offering price. Five
an
offering of 454,457 shares of common
common
stockholders
underwritten by a
headed by Morgan Stanley & Co.
Price—Ex¬
pected to be not less than $33 per share. Proceeds—For
was
group
construction.
•
Ci*
Delaware
Boston
Philadelphia
,
'
Pittsburgh
San Francisco
Private IVires
to all
offices
Chicago
June
14
&
filed
Development Corp.,
Castle, Del.
(letter of notification)
'
by
Jackson
and
an
oversubscription privilege.
Mitchum, Tully & Co. Proceeds—To purchase addi¬
common
stock of operating subsidiaries, and to
advances to these companies pending the per¬
manent
Box
postponed to week of July 3.
110, New Castle, Del.
7
'
~
„•*»
•
-
•
l
:
%rv*
Price—To be
amendment.
Underwriters—Paine, Webber,
& Curtis; Stone & Webster Securities Corp.
shares of cap¬
share, of which 5,000 shares may be
exchanged for patent rights. No underwriter. Proceeds
for capital assets and working capital.
Address—P. O.
25,000
ital stock at $10 per
Cleveland
12 filed
will include
Research
New
New York
Telephone Corp. (7/3-7)
199,350 shares of common stock (par $20)
to be offered to common stockholders in the ratio of
one new
share for each six shares held.
The offering
General
June
tional
make
financing
of
new
construction.
J
Temporarily
'
.Volume 171
Number 4920
Geneva
v
June 13
.
..
The Commercial and Financial Chronicle
Telephone Co., Geneva, Ohio
(letter of notification)
ment.
NEW ISSUE CALENDAR
purchase equip¬
June 30,
Hill
Mining Co., Colorado Springs, Colo.
May 26 (letter of notification) 5,885,000 shares of com¬
stock.
mon
Price—At par (one cent per share).
Kansas-Nebraska
Under¬
Caspers Tin Plate Co
General
Proceeds—For mining equipment.
Associates, Inc.
May 11 (letter of notification) 30,000 shares of common
(par $1), of which 20,000 shares are to be offered
publicly at $5 per share and 10,000 shares to employees
$2.50 per share.
Underwriter—None.
program
for
and
155 East 44th St., New York
Granville
16
Mines
stock
filed
(par
None.
100,000
50c).
working capital.
shares
buy
July 6, 1950
Front Range
British
Columbia,
Haloid
of
$4.85 div.; W. C. Langley & Co. and First Boston Corp.
(jointly), $100.30 with a $4.90 dividend; and Blyth & Co.,
Inc., Equitable Securities Corp., Shields & Co., White,
Common
with
/
share.
per
mining
and
•
July 10, 1950
Underwriter—
National Automotive
for
Fibres, Inc..
May 27, 1949, filed 620,000 shares of class A partic. ($1
par; stock and 270,000 shares (25c par) common stock1
Offering—135,000 shares of common will be offered foi
(Wm.) Co.__
Erie RR.
stock
tion
Panhandle Eastern
..Common
Pipe Line Co..
June
United
States
Plywood
Corp
to
16
filed
be offered
basis
of
one
47,183 shares of
common
share
for
stock
common
Proceeds—For working capital.
Century Blvd., Los Angeles 45, Calif.
W.
preferred stock, and for construction and other purposes.
by company up to noon (EDT) on June
19, (but rejected.
Three bids were made as follows:
Bids—Received
Union
with
Higgins, Inc., New Orleans, La.
May 23 (letter of notification) 300,000 shares of
stock
($1
to
be
sold to
common
A.
•
Underwriter—P. W. Brooks & Co.,
Price—100% of principal amount. Pro¬
ceeds^—To pay mortgage, buy machinery and for addi¬
tional working capital.
Business—Stampings and as¬
stock.
Inc., New York.
for
automotive, refrigeration, household appli¬
and otber industries/ Expected in July.
Interstate
June
Finance
Corp.,
Dubuque,
writer.
more
/
than
•
preferred stock (par $100).
be determined by competitive
Probable bidders for bonds: Halsey, Stuart & Co.,
terms.
Inc.; Kidder, Peabody & Co.; Union Securities Corp. and
Merrill
Lynch, Pierce, Fenner & Beane (jointly); Equit¬
able Securities Corp.; Blyth & Co., Inc.; The First Bos¬
ton Corp. and Lehman Brothers (jointly); Harriman Rip¬
ley & Co., Inc. Probable bidders for preferred issue:
Union Securities Corp. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Kidder, Peabody & Co.; White,
Weld & Co.; Lehman Brothers and Lazard Freres (joint¬
ly);
G. Becker & Co., Inc. Proceeds—For property
additions. Expected in July.
•
Kettle
June
assessable
per
River
Consolidated
Mines,
Inc.,
Cowiche, Wash.
19 (letter of notification)
share.
600,000 shares of non¬
capital stock. Price—At par (10 cents
Underwriter —- None. Proceeds—To acquire
common
develop mining property. Address—Box 12, Cowiche,
Wash.
(M. H.), Inc., New York City
(letter of notification) 1,200 shares of common
stock at market (approximately $9 per share). Proceeds
to selling stockholders.
Underwriters—To be offered
through Childs, Jeffries & Thorndike, New York, N. Y.
N.
>
Proceeds—To
increase
Office—123
at rate to be filed by amendment.
pany
6th
E.
Price—Of bonds
amendment; of preferred, at par. Under¬
writer—Kidder, Peabody & Co. Proceeds—For construc¬
Merry Brothers Brick & Tile Co., Augusta, Ga.
Metrogas, Inc., Chicago, III.
May 22 (letter of notification) 1,344 shares of common
stock (no par), to be offered to shareholders at $56.50
per share. Rights will expire on June 30. No underwriter.
Proceeds to repay obligations and purchase equipment.
Office—22 West Monroe St., Chicago, 111.
Mid-States
Equipment Co., Detroit, Mich.
June 2 (letter of notification) 3,148 shares of common
stock. Price—$1 per share. Underwriter—Greenfield, Lax
& Co., Inc., New York, N. Y. Proceeds—To Greenfield,
Lax & Co., Inc.
and
South Utilities,
Inc.
Co.
and Mississippi Power & Light Co.
Underwriter—
Equitable Securities Corp will serve as "dealer-man¬
ager."
Deposits — May
be
accepted
between
June
26 and
July 14. (See also listings of Arkansas, Louisiana
and Mississippi companies elsewhere in these columns.)
Water Co., Newark, N. J.
(letter of notification) 5,200 shares of
common
stock offered to commpn stockholders of record March 17
at $50 per share on a bne-for-five basis.
Underwriter—
Clark, Dodge & Co.
Proceeds—To pay notes and for
Expected this month.
additional working capital.
filed
19
140,000
Proceeds—To purchase assets of Federal Leather Co. (An
additional 10,000 shares are to be sold to Louis M. Plansoen,
President of Federal, at the
price.)
same
Norlina Oil Development Co., Washington, D. C.
March 28 filed 600 shares of capital stock (no par.) To
offer only sufficient shares to raise $1,000,000 at $5,000
share. No underwriter. Proceeds to be used to
per
plore and develop oil and mineral leases.
fective May 22.
Norris
ex¬
Statement ef¬
'
Oil Co.,
Ventura, Calif.
June 9 (letter of notification) 5,000 shares of common
stock (par $1), to be sold at the market price (of from
$5 to $5.50 per share) through First California Co.,
Holton. Hull & Co.. Dempsey-Tegeler & Co* and Morgan
& Co., Los Angeles; and James Ebert Co., Bakersfield,
Calif.
the
Proceeds go to Eva M.
selling
stockholder.
Halliburton, Fresno, Calif.,
Office—182
W.
Ramona
St.,
Ventura, Calif.
Northern
May
10
Illinois
(letter
stock
common
Coal Corp., Chicago
notification) up to 2,000 shares of
(no par) to be sold at the market price
of
(between $20 and $22
Vice-President
of
per
the
share)
by T. Howard
company.
GreenN
Underwriter—FaroVY
& Co., Rogers & Tracy and Shields & Co., Chicago.
,.
/
Northern Insurance
June
1
first
offered
filed
Co., N. Y. City
80,000 shares of capital stock
stockholders
to
share-for-share basis with
Price
of
record
(par $12.50)
June
20
on
a
rights to expire on July 11.
Underwriters —First Boston
$37.50 per share.
Corp and Wood, Struthers & Co
Proceeds—To increase
capital and surplus. Statement effective June 20.
—
Northwestern
Public
Service
Co., Huron, S. D.
June 9 filed 49,200 shares of Cbmmon stock (par $3) to
be offered
to stockholders
of record
at
rate of one
share
for
each
10
held.
Underwriter—A. C. Allyn and
Price—To be filed by amendment.
construction
expenditures.
Postponed
Co., Inc., New York.
Proceeds—For
temporarily.
Ohio Oil & Gas Co.
May 5
stock
(letter of notification) 1,100 shares of common
held in treasury.
Price—50 cents per share.
now
Underwriter—None.
Watt
and
Schoyer.
To be offered
through Preston,
Proceeds—Toward repayment of
bank loans.
Orchards
March 16
stock.
Telephone Co., Orchards, Wash.
(letter of notification)
Price—At
($100
500
shares of
share).
Proceeds—To modernize plant.
par
per
common
Underwriter—
,
June 1 filed 400,000 shares of common stock (no par) to
be offered to preferred stockholders of three subsidiaries
—Arkansas Power & Light Co., Louisiana Power & Light
Feb. 9
Automotive
Fibres, Inc. (7/10)
shares of capital stock (par $1).
Price—To be related to the current market price at the
time of sale.
Underwriter—Reynolds & Co.; New York.
June
None.
Middle
expansion program.
National
a
Middlesex
Lamston
May 19
go
cream
333
Underwriter—Johnson, Lane, Space & Co., Inc. Proceeds
—To Ernest B. Merry, Jr., Vice-President and General
Manager, the selling stockholder.
Lexington, Ky.
Underwriter—For the bonds,
bidding. For the prefererd stock, underwriters' names to be supplied by
amendment, along with the price and underwriting
ice
—
June 15 (letter of notification) 1,250 shares of 5% cumu¬
lative preferred stock. Price—At par ($100 per share).
June 2 filed $3,500,000 of first mortgage bonds, series C,
due July 1, 1980 and 30,000 shares of 4%% cumulative
to
to
for
O'Conner, President of the company. Underwriter
—Francis I. DuPont & Co., Chicago. Office—2131 Bueter
Road, Fort Wayne, Ind.
Co., Chi¬
The First Trust Co. of Lincoln, Neb. Proceeds—
indebtedness and for improvements.
Kentucky Utilities Co.,
and
ard A.
cago, and
To pay
Proceeds
Magnavox Co., Fort Wayne, Ind.
19 (letter of notification) 5,500 shares of common
stock (par $1). Price—$18 per share. Proceeds—To Rich¬
Co., Inc. (6/30)
(letter of notification) 2,850 shares of $5 cumu¬
■
Telephone Co., Honolulu, Hawaii
June 27 filed $1,000,000 first mortgage bonds, series G,
due 1980, and 100,000 shares of preferred stock, series C
(par $10), the new preferred stock to be offered initi¬
ally to common stockholders and employees of the com¬
June
Natural Gas
preferred stock (no par). Price—At not
,$105 per share. Underwriters—Cruttenden &
per
•
Price—$25 per share. Underwriter—None. Proceeds
—To increase working capital.
Office — 1157 Central
Ave., Dubuque, la.
$5).
lative
$26
develop and promote
working capital. Office
Michigan Ave., Chicago, 111.
(letter of notification) 4,000 shares of common
stock (par $5) and 2,000 shares of B common stock (par
June 5
at
dispensers
Iowa
14
Kansas-Nebraska
cash
unit; the remaining 8,100 common
shares will be exchanged for patent rights covering the
right to manufacture an ice cream dispenser. No under¬
semblies for
ance
Allen &
Magicone Corp., Chicago, III.
May 18 (letter of notification) 4,000 shares of 6% cumu¬
lative convertible preferred stock (par $25) and 12,100
shares of common stock (par $1) of which 4,000 units of
one
preferred and one common share will be offered
$ Mfg. Co., Detroit
May 15 filed $500,000 of first mortgage 5% sinking fund
bonds, due 1967, with warrants to purchase 60,000 shares
common
Statement effective June 12.
Co., Inc., Los Angeles, Calif. Proceeds—To
buy land, build a plant and equip it to produce so-called
"impact" plastics. Office—244 S. Pine St., Newhall, Calif.
Plant, New Or¬
leans, La.
of
$4.80 dividend.
Loven Chemical of California, Newhall, Calif.
May 31 (letter of notification) 282,250 shares of capital
stock. Price—At par ($1 per share). Underwriter—Floyd
present stockholders. Price—At par
Industrial Stamping
a
:
share). Underwriter—None. Proceeds—For gen¬
per
eral purposes. Office—Industrial Canal
Securities
Corp., $100.40 per share with a $4.65
dividend; Blyth & Co., Inc., and Equitable Securities
Corp. (jointly), $100.10 with a $4.65 dividend; and W. C.
Langley & Co. and First Boston Corp. (jointly), $100.30
Office—6251
v'
Mutual
tion
redeem, at $110 per shart plus
dividend accruals, the 59,422 shares of outstanding $6
Corp., Los Angeles, Calif.
June 16 (letter of notification) 150,000 shares of common
stock (par $1). Price—70 cents per share. Underwriter
,
to be filed by
Proceeds—To be used to
Harvill
r—None.
Underwriter—None.
Louisiana Power & Light Co.
May 23 filed 90,000 shares of preferred stock (par $100).
plies.
■,
Inc., Cincinnati, O.
capital for loan business.
share. No underwriter. Proceeds-^For general purposes.
For general corporate purposes.
Business—Sensitizing
photographic and photocopy papers and manufacturing
photocopy cameras, papers and other photographic sup¬
■V
^
Libbey-Owens-Ford Glass Co.
May 19 (letter of notification) 6,380 shares of common
stock (no par), to be offered to employees at $26.25 per
expire July 24.
Underwriter—The First Boston
Corp* Price—To be filed by amendment.
Proceeds—
Spokane,
Bldg.,
St., Cincinnati, O.
Common
•
(par $5)
Under¬
produc¬
7
available
Southern Co.
will
•
Credit of Cincinnati,
preferred.
stockholders of record July 6 on
each three shares held.
Rights
Paulsen
for
(letter of notification) 1,200 shares of common
(no par) and 1,000 shares of preferred stock (par
$100). Price—$25 per share for common and $100 for
Preferred
basis." Price—Par for common $5 for class A. Proceeds
—To complete an ocean ferry, to finance dock and term¬
inal facilities; to pay current obligations, and to
provide
June
materials
common
stock
July 25, 1950
(7/7)
buv
Office—1121
ladders.
Mutual
Debentures
July 17, 1950
working capital. Statement effective May 10.
Proceeds—To
,,
/
by holders on the basis of one-for-two at
share Underwriters—Names by amendment
and may include Blair, Rollins & Co.,
Inc.; John J. Ber¬
gen & Co. and A. M. Kidder & Co. on a "best efforts
Co., Rochester, N. Y.
of
Wash.
25 cents per
Haloid
Inc., Spokane, Wash.
notification) 200,000 shares of
(par 10 cents). Price—25 cents per share.
______________________Equip. Trust Ctfs.
,
subscription
Statement effective June 12.
Moen Ladder Co.,
writer—None.
Cameron
Transportation Co., Jacksonville,
Kidder, Peabody & Co. (jointly), $100.19
$4.90 dividend.
a
June 16 (letter of
...Common
July 12, 1950
Florida
a
Weld & Co. and
Co.
non-assessable
common
Union Securities Corp., $100.10 per share
$4 80 dividend; Lehman Brothers, $100,551 with
a
Common
Mines, Inc
July 7, 1950
Ltd.,
1216 shares
stock.
follows:
with
Office—
machinery
Statement effective May 10.
Atlantic
as
__Pfd. & Common
17, N. Y.
Corp.,
Price—35c
Proceeds—To
Gulf
Common
Common
July 5, 1950
Proceeds—For
working capital.
Proceeds—To assist in acquisition of
Mississippi Power & Light Co.
May 23 filed 85,000 shares of cumulative preferred stock
(par 100). Proceeds—To be used to redeem at $110 per
share plus dividends, the outstanding 44,476 shares of $6
preferred stock and for construction and other corpo¬
rate purposes. Bids—Received by company up to noon
(EDT) on June 19 but rejected. Four bids were made
Common
__
Products, Inc._
Y.
Pfd.
Telephone Corp
Allied Electric
Canada
Feb.
Inc
(H.)
stock
6
of company's common
Transvision, Inc.
Gloeckler
expansion
N
1950
Natural Gas Co.,
July 3, 1950
writers—George C. Carroll Co., Denver; Inter-Mountain
Shares, Inc., Denver; and M. A. Cleek, Spokane, Wash.
at
(Walter R.) Co., Inc.
(letter of notification) 1,000 shares of 6%
cumulative preferred stock at par ($100 per share). Un¬
derwriter—George D. B. Bonbright & Co., Binghamton,
March
Underwriter—
Price—Expected at 101.75.
Globe
|
Miller
$25,000 of 15-year 3Yi%
series A first
mortgage bonds, due 1964.
The Ohio Co., Columbus. Proceeds—To
43
(2703)
Pan American Gold Ltd., Toronto, Canada
July 20, 1948 filed 1,983,295 shares of common stock (par
$1). Underwriters may be brokers.
Price—45 cents per
share.
Proceeds
Mainly for development. Statement
—
effective April 10, 1950.
Panhandle
June
19
Eastern
Pipe Line Co.
(7/12)
filed
$20,000,000 of debentures, due 1975, and
$15,000,000 of serial debentures, due $1,500,000 each year**
from
1953 through 1962.
Underwriters—Kidder, Pea¬
body & Co., Merrill Lynch. Pierce, Fenner & Beane, and
Halsey, Stuart & Co. Price—To be filed by amendment,
along with interest rates on both issues. Proceeds—To
pay promissory notes, for general funds and for conContinued
on
page
44
■
44
The Commercial and Financial Chronicle
(2704)
Continued
natural
from
page
of
and
transmission
stock
gas.
21,145 shares of common
(letter of notification)
Price—$14 per share.
Underwriter—
None. Proceeds—To modernize Rouseville refinery and
for expansion of marketing facilities.
Offering—To be
offered minority common stockholders of record June 16
on basis of one
new share for each eight
shares held;
rights will expire July 7.
In addition, 58,171 additional
shares are being offered to South Penn Oil Co., owner
of 73.34% of Pennzoil common stock at the same price.
(par $10).
June 30, 1950.
Underwriter—None.
•
Price—At par ($100
-
April 25, 1949, filed 1,150,000 shares ($1 par) common
of which 1,000,000 on behalf of company and 150,000 by
New York Co., Ltd.
Price—50 cents per share. Under¬
writers—S. G. Cranwell & Co., New York.
administration expenses and drilling.
Proceeds—
For
•effective June 27,
Provident
Statement
1949.
Life
Insurance
Co., Bismarck, N.
D.
(par 5 cents).
•
New
June 21
®
Public
$7,000,000 of convertible debentures, due
1960, and 100,000 shares of cumulative preferred stock
(par $100). Underwriters—To be determined by com¬
petitive bidding, along with prides, interest rate on de¬
bentures and dividend rate
on preferred stock. Probable
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., and Smith, Barney & Co. (jointly); Lehman
Brothers; First Boston Corp.; Harris, Hall & Co., Inc.;
Kidder, Peabody & Co. Probable bidders for preferred:
Glore, Forgan & Co. and W. C. Langley & Co. (jointly);
Lehman Brothers; First Boston
Corp., Boettcher & Co.
and Bosworth, Sullivan & Co.;
Harris, Hall & Co., Inc.
bidders
for
bonds:
Proceeds—For construction.
Rainbow Onyx Co., Phoenix, Ariz.
(letter of notification) 80,000 shares of common
stock (par $1).
Price—$1.50 per share.
Underwriter—
None.
ating
Proceeds—For
capital.
machinery, equipment and
Address—P.
O.
Box
6112,
3210
oper¬
South
19th Ave., Phoenix, Ariz.
Reid Brothers, Ltd., San
Francisco, Cal.
April 3 (letter of notification) 10,000 shares of preferred
stock. Price — At par ($10 per share.) Underwriter—
None. Proceeds—To restore depleted
stocks, buy new
items and for additional working capital.
®
Resort Airlines, Inc.,
Pinehurst, N. C.
June 19 (letter of
notification) 13,547 shares of
capital stock. Price—At
($1
share).
Proceeds—For working capital.
—None.
par
per
•
1
Richland Oil Development
Co., Chicago, III.
May 19 (letter of notification) 300,000 shares of common
stock
(par
50 cents) to be sold at $1 per share. No
underwriter. Proceeds for drilling activities and
payment
of rentals and
obligations. Office—1609 Roanoke Bldg.,
11 So. La Salle St.,
Chicago, 111.
Roby
(Sidney B.)
Co.
&
16 (letter of notification)
stock, to be offered stockholders
at
rate
of
one
231
shares
of
of record June
capital
7, 1950,
share for each
eight shares held; rights
to expire July 12, 1950.
Price—$100 per share. Under¬
writer—None. Proceeds—For
working capital. Office—
245 Culver Road,
Roel
June 16
stock.
Stock
Rochester, N. Y1
Kryston Inc., Staten Island, N. Y.
(letter of
Price—At
notification) 15,000 shares
of common
($1 per share).
Underwriter—
by officers of company.
Proceeds—To
production facilities.
par
offered
establish
Ronson Art Metal
May 29 (letter of
Works, Inc., Newark, N. J.
notification) 1,300 shares of common
stock (par $1) to be sold for the
benefit of the estate of
Louis V. Aronson at the
going price on the New York
Stock Exchange, which was
$18.25 per share on May 25
Underwriter—Ross Blanchard & Co., New York
City.
Safeway Stores, Inc.
June 8 filed 321,000 shares of cumulative
preferred stock
(par $100) and 257,064 shares of common stock
(par $5)
*The common will be offered to common stockholders
of
record at the rate of one new share for
each 10 held
Of the
preferred, 205,661 shares will be offered in ex¬
change for 186,965 shares of outstanding 5% preferred
stock, along with an unspecified cash payment. Under¬
writer—Merrill Lynch. Pierce, Fenner &
Beane will offer
the unsubscribed common shares as well as
85,114 shares
Co..
New York.
Proceeds—For
*
Office
•
Corp., New York City
(letter of notification) 2,500 shares of capital
stock (par 10 cents) of which there will be
presently
sold 1,500 shares at $1 per share, the remaining 1.000
shares, to be offered later at $1.50 pey share. Under¬
22
•
Co., Atlanta, Ga.
value
bidders
Co.,
•
(7/25)
Inc.;
Lehman
shares
financing
11:30
•
of
subsidiaries
construction.
new
(EDT)
a.m.
in
order
to
assist
on
pur¬
in
preferred, together with a $750,000
loan ,will be used to expand the
company's operations.
Business — Drawing aluminum and copper wire from
stranding aluminum,
copper and steel wire into
cable.
share and 700 shares of
per
preferred stock
($100 par)
Proceeds
$100
at
per
increase
to
working
Office—339 S. Conkling St., Baltimore 24, Md.
(7/3-7)
Inc.
ing
capital
and
Proceeds—To increase work¬
from RFC and Croydon
loans
repay
Syndicate, Inc.
of notification)
(letter
18
28,571
shares
common
to be sold at $7 per
share. T. E. Nelson, Assistant Secre¬
tary of the company, will handle the sales on a commis¬
sion
basis.
for working capital and payment
Offices—Pueblo, Colo., or 1415 Joseph
Vance Bldg., Seattle, Wash.
Proceeds
of
.
obligations.
•
Twentieth Century Oil Co.* Beverly Hills, Calif.
June 16 (letter of notification) 273,921 shares of common
stock
of
/par $1), all of which is being issued to partners
company and of Arvin Oil Co. for their assets
the
"on
basis of
the
share
one
of
stock
for
dollar of
each
These assets consist of six oil wells
in the Placerita Oil field, Los Angeles County. No under¬
writer. Office—424 S. Beverly Drive, Beverly Hills, Calif.
partnership assets."
United
States
Plywood Corp.
(7/17)
June 19 filed
60,000 shares of series B cumulative con¬
vertible preferred stock (par $100). Underwriter—East¬
man, Dillon & Co., New York.
Price—To be filed by
amendment along
Spencer Chemical Co., Kansas City, Mo.
June 1 filed 85,000 shares of 4.60% cumulative
preferred
stock (par $100) being offered for
subscription by com¬
stockholders of record June 26 at rate of .085 shares
share of common held; rights ex¬
of preferred for each
pire July 3.
Price—$100
share and accrued dividend.
Underwriters—Morgan Stanley & Co. and Glore, Forgan
& Co. Exchange Offer—Preferred shares
not purchased
by common stockholders are to be offered in exchange
per
for outstanding shares of 5% cumulative
preferred stock,
par $10, on a l-for-10 basis. Unexchanged shares of old
preferred stock (150,000 presently
called for redemption.
outstanding) will be
Proceeds—For general corporate
Standard
Television
Film
Co., Mesa, Ariz.
June 12 (letter of
notification) 300,000 shares of common
stock at par ($1 per share). No
underwriter. Proceeds
for capital to begin
producing television and motion pic¬
ture films. Address—P. O. Box
915, Mesa, Ariz.
Studio
F,
Inc.,
Boulder, Colo.
19
(letter of notification) 600 shares of 6% cumu¬
lative preferred stock, with
right to buy five shares of
no
par value common stock at $1 per share, and 5.500
shares of common stock. Price—For
preferred $100 per
share. Underwriter
None. Proceeds
To build and
equip a new building, furnish working capital.
—
9
common
shares
of
notification)
(par'$l),
offered shall
June
5, $15
so
not
per
sufficient
a
number
of
that aggregate offering price
exceed $100,000..
Price—At
share.
Vieh Co.,
(letter of notification) 19,500 shares of common
Underwriter—The Ohio Co. Pro¬
ceeds—To buy the assets of Brodhead-Garrett Co. and
May 8
for
working capital.
June 6, 1949, filed 375.000 shares of
—$1 per share (U. S. funds).
May 29 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per share). Underwriter—Phil
Morse, Trustee, P. O. Box 1283, Kingman, Ariz. Pro¬
ceeds—For equipment, real estate, working capital and
general corporate purposes. Office—Virginia and Truckee
Building, Carson City, Nev.
Western Oil
common
stock.
Fields,
Inc., Denver, Colo.
May 5 (letter of notification) 600,000 shares of common
stock and a $50,000 note carrying interest at 4% payable
from percentage of oil sold.
This note will carry with
it as a bonus 500,000 shares of stock.
Price—Of stock,
250 per share.
Underwriter—John G. Perry & Co., Den¬
Proceeds—To drill for oil in Wyoming and for
ver.
working capital.
Western
,-';////-'//.;/V;/;/v'
Uranium
Price
/{///-':/
/■/;//■•
Cobalt
Mines, Ltd.,
Vancouver, B. C., Canada
filed
28
shares
800,000
of
common
capital
stock
(par $1). Price—35 cents per share. Underwriter— None.
Proceeds—Exploration and development work. State¬
ment effective
May 23.
Wisconsin
Electric
* /
Power
May 5 filed 585,405 shares of
offered
on
to
basis
common
of
one
tures
on
share
for
May 26.
common
for
Proceeds
each
stock
five
(par $10)
1950
shares
Price—$17.50
-j—
per
held;,
share.
For capital expendi¬
the combined electric
the treasury
and
T
Co.
stockholders of record June 6,
new
Underwriter—None.
Underwriter—None. Pro¬
ceeds—Funds will be applied to the purchase of
equip¬
ment, road construction, exploration and development:
>
j;
WesternGypsumCorp., Carson City, Nev.
rights to expire June 29, 1950.
Sudore Gold Mines Ltd., Toronto, Canada
plant at Anderson, Calif.
a new
Columbus, Ohio
stock at $10 per share.
Underwriters—Antici¬
pated that Eastman, Dillon & Co., New
York, will sell
shares in over-the-counter market.
Proceeds—To SBN
Gas Co., West Orange, N. J.
with dividend rate. Proceeds—To in¬
working capital and for other corporate purposes,
including the erection of
—
Propane Gas Corp.
(letter of
of shares
crease
Feb.
Suburban
i
Md..
Baltimore,
Triplex Corp. of America, Pueblo, Colo.
with purchase warrants at 5 cents
each; $8.25 per share
for the common, plus 5 cents for each warrant.
Proceeds
—From the sale of the
close
Inc.,
baugh & Co., New York.
May
accompanying each share. Underwriters—
Co.; The Robinson-Humphrey Co. and Clement
A. Evans & Co., Inc.,
Atlanta, Ga. Price—$50 per share,
plus accrued dividend from July 1 for the preferred
June
619 Leonhardt
July 25.
tion warrant
•
Co.,
stock at $30
Transvision,
Bids—To be received at of¬
16,000 shares of 6% cumulative preferred
stock (par $50) with 64,000 stock purchase warrants to
buy 64,000 shares of common stock (par $3), and 15,000 '
shares of common stock with 15,000 warrants to purchase
an additional 15,000 shares of common.
The preferred
stock is offered by the company with four stock
purchase
warrants offered wtih each preferred share.
The com¬
mon stock is offered
by three stockholders, with an op¬
June
—
June 13 filed 300,000 shares of common stock (par $1).
Price—2.75
per
share.
Underwriter—Blair F. Clay-
filed
rods and
To drill additional oil
notification) 175 shares of class B ($20
underwriter.
No
capital.
Electrical Corp., Inc., North
Chattanooga, Tenn.
21
—
County, Okla. Office
Finance
common
share.
Brothers;
them
Okla.
3,000 shares of $100 par
Price—At par ($100 per share).
None. Proceeds
cumulative
7%
Southern
June
—
Kiowa
Time
par)
Unjpn Securities Corp. and Equitable Securities Corp.
(jointly); Harriman Ripley & Co., Inc. Proceeds—To
common
V-k shares held and
Bldg., Oklahoma City, Okla.
Morgan Stanley & Co., Kidder,
Merrill Lynch, Pierce, Fenner &
&
outstanding
to Peoples Gas
stock.
common
wells in
are:
Peabody & Co. and
(jointly); Blyth
to holders of
(letter of notification)
Underwriter
June 23 filed 1,000,000 shares of common stock
(par $5).
Underwriters—To be determined by competitive bidding.
Probable
Pipeline Co.
other
to
June 19 (letter of
Southern
Gas
Texhoma Oil Corp., Oklahoma City,
June 16
writer—d'Avigdor & Co., 63 Wall Street. New York City.
Proceeds—To selling stockholder.
Office—381 Fourth
Avenue, New York City.
purposes.
June
convertible
per
Light & Coke Co. and
stockholders, with Peoples taking
up all shares not subscribed for.
Underwriters—White,
Weld & Co. nad Glore, Forgan & Co., will underwrite
the notes.
Price—Of common stock, $10 per share; of
notes, to be filed by amendment along with interest rate.
Proceeds—For construction of pipeline facilities.
Busi¬
ness—Natural Gas pipeline transmission.
749,000 shares of com¬
Price—40 cents per share.
cent).
Natural
be offered
remainder
Skiatron
June
mon
common
Underwriter
cumulative
($10
at the rate of one new share for each
New Rochelle,
Courts &
June 8
of
par
filed
26
stock will
fice of the company, 20 Pine St., New York, N. Y.,
up to
Service Co. of Colorado
June 26 filed
*
(par
Illinois
Texas
will be sold 50%
payment of patents, etc., and for working capital.
—111 Cedar Street, New Rochelle, N. Y.
chase
Office—Broadway at Second, Bismarck, N. D.
Price—At
principal amount; 120,000 shares of cumulative preferred
stock ($100 par) to be used in paying off the notes, and
1,750.000 shares of common stock (par $1). The common
Under¬
York
Beane
field.
shares
100,000
stock.
$12,000,000 of interim notes, due Jan. 1,
1952, payable upon maturity by delivery of cumulative
preferred stock at the rate of one share for ea£h $100
(letter of notification)
stock
mon
nection with
*
Price—20 cents per share.
Sightmirror Television Corp.,
April 19 (letter of notification) 12,500 shares of common
stock (par $10) being offered directly to stockholders
of record April 25 at $20 per share; rights to
expire
July 1.
No underwriter.
Proceeds to maintain the
proper ratio of capital and surplus to liabilities in con¬
entering the accident and health insurance
•
June
Cedar Street, New Rochelle. N. Y.
ceeds-—For
I
A
share). Under¬
writers—Sills, Fairman & Harris; Straus & Blosser. Pro¬
ceeds
For additional plant facilities and for working
capital.
writer—Butler, Moser & Co., 44 Wall Street, New York,
Y.
Proceeds—To selling stockholder.
Office—111
com¬
Canada
—
Radio Corp., N. Y. City
filed
22
class
N.
Pittsburgh
Toronto
stock (par $1),
Sills, Fairman &
Proceeds—To 15 selling stock¬
common
y:/''V:-
Tele-Tone
June
Sightmaster Corp., New Rochelle, N. Y.
(letter of notification) 18,500 shares of common
stock
assets of company.
Ltd.,
•
June 20
Underwriter—Tellier
Petroleum
Underwriters
Harris: Straus & Blosser.
Valley Securities Co., Rochester, N. Y. Proceeds
—To acquire properties and for working capital.
Phillips-Jones Corp.
May 31 (letter of notification) 10,000 shares of common
stock (no par) offered to executives of the corporation
at $15 per share. Net proceeds to be added to cash
Power
shares of
share.
per
holders.
Genesee
$10,000,000 of bank loans. Statement effective May 29.
more
Corp., N. Y. City
135.000
22 filed
Price—$6
Radio
Thursday. June 29,1950
—
Proceeds—To buy additional common stock
in Texas Illinois Natural Gas Pipeline Co. and to pay
Pro¬
general corporate purposes. Price—At ,not
than $4 per share or less than $2.50 per share.
Tele-Tone
June
Oil Co., Oklahoma City, Okla.
April 27 (letter of notification) 225,782 shares of class A
stock (par 500).
Price—$1.25 per share.
Underwriter—
share).
Brewing Co.
June 15 (letter of notification) 60,000 shares of
mon stock (par $2.50), to be offered to
employees.
•
for
*$eneca
Peoples Gas Light & Coke Co.
May 8 filed 116.962 shares of capital stock being offered
to stockholders of record June 5, 1950, at the rate of
one new share
for each seven held; rights will expire
per
not
shares which will be created
of
Pennzoil Co.
June 9
preferred
needed
the exchange and 30.225
by converting that many of
the old 5% shares brought in under the exchange into
new preferred stock.
Any old preferred not exchanged
will be redeemed on Oct. 1.
Price—To be filed by
amendment, along with the dividend rate on the new
preferred. Proceeds—To redeem the unexchanged 5%
stock, make cash payments on exchange, and toward the
prepayment of $20,000,000 in bank loans.
Offering—
Temporarily postponed.
43
Business—Production
struction.
...
properties, to reimburse
for capital expenditures previously made,
other
::
■
corporate puropses.
-
Statement effective
///:/: V/
Volume 171
Number 4920
.
The Commercial end Financial Chronicle
.
.
(2705)
writers, headed by Kidder, Peabody & Co. and The First
Prospective Offerings
Aetna
June 3 it
Finance
later
this
Sachs
&
Goldman,
underwriter:
Co.
Alabama
May 12
Co.
Traditional
year.
Power
Co.
reported to be considering issue in late
of about $10,000,000 preferred stock.
Probable
company
summer
bidders: Morgan Stanley & Co.; Blyth &
Securities Corp. and Equitable Securities
First Boston Corp.; Drexel &
for construction expenditures.
Co., Inc.; Union
Corp. (jointly);
Proceeds will be used
Co.
May 24 announced company is planning to file shortly
registration statement covering 160,000 shares of prior
Price—To be filed by amend¬
Underwriters—Glore, Forgan & Co.; Kidder, Peabody & Co., and Alex. Brown & Sons, and others. Pro¬
ceeds—For additional working capital.
preferred stock (par $50).
ment.
to
common
share for each eight shares
amendment. Underwriters—
competitive bidding. Probable bid¬
Co. and W. C. Langley & Co.
(jointly); Blyth & Co., Inc.; Lehman Brothers; The First
Boston Corp. Proceeds—To increase investments in stock
of Michigan Consolidated Gas Co. and Milwaukee Gas
Light Co.
•
Forgan
&
Ancient River Channels Gold Mining Co.
announced to issue and sell 500,000
(par 10 cents). Price—25 cents
Proceeds—For working capital, etc. Office—
Ma.y 31 plans
shares of
were
common
per share.
206 North
Big Bear Markets of Michigan, Inc.
was announced company plans registration of
June 9 it
White &
•
capital
the
toward
tion.
G.
it
27
the SEC
assets
an
It is understood to
plan refunding of a $100,000,Issued in 1930 with a
4% coupon, these bonds are due Oct. 1, 1960 and subject
to call Oct. 1, next, on 60 days' notice.
The latter priv¬
ilege is expected to be exercised some time next month.
Celanese
Corp. of America
April 12 the stockholders voted to authorize the creation
of 1,000,000 shares of a new preferred stock (par $100),
505,000 shares of which can be issued at any time.
Plans are being formulated for the issuance this year,
if
market
conditions are considered
satisfactory, of
an initial series of this new preferred stock which may
be convertible into common stock.
Net proceeds would
be used in part for expansion of the
business, including
Probable underwriters:
Dillon, Read & Co. Inc.; Morgan Stanley & Co.
March 1 it
was
facilities.
Electric Corp.
Central States
announced that under an amended plan
reorganization it is proposed to issue to holders of all
each old share the right
to buy a unit consisting of eight shares of new common
stock and $14 principal amount of new 4V2% income de¬
bentures for a package price of $18. The common stock,
except for approximately 4,600,000 shares held by Harri¬
son Williams and associates, would be offered the right
to buy a unit of one new common share and $1.75 of new
income debentures for a package price of $2.25 for each
of
classes of 6% preferred stock for
five
shares held.
common
issue of new stock and
The
Darien Corp. and
a banking group
headed by Hemphill Noyes, Graham,
Parsons & Co., Shields & Co., Blair, Rollins & Co., Drexel
& Co. and Sterling Grace Co.
debentures would be underwritten by
•
Central
Telephone Co.
June 22 company announced
tion
statement
common
mon
in
late
stock (par
July
it plans to file a registra¬
covering 90,000 shares of "
$10), which
are
to be issued to com¬
stockholders of Central Electric & Gas Co.
basis.
on
a
1-
Jack¬
son
& Curtis and Stone & Webster Securities Corp.
Proceeds—Mainly to retire $850,000 short-term loans.
for-13
Central
Dealer
Managers—Paine,
Vermont
Public
Service
Webber,
Corp.
announced that if offer to acquire Green
Mountain Power Corp. becomes effective, it plans to re¬
May 4, it
fund
was
and refunding 33A%
bonds due 1963 of Green Mountain by the issue and sale
for cash of first mortgage bonds of a new series and of
a
outstanding
new
$7,715,000
first
series of preferred stock,
$100 par value. Prob¬
able bidders for bonds: Halsey, Stuart
able
bidders
for
& Co. Inc.; prob¬
& Co. and
preferred: W. C. Langley
Hemphill, Noyes, Graham, Parsons & Co. (jointly).
Chicago & Western Indiana RR.
Jan. 31 reported company will probably issue in the near
future
some
bonds to refund the 4%
first
non-callable
con¬
1, 1952.- Re¬
funding of the first and refunding mortgage 4Y4% bonds,
series A, due Sept. 1, 1962, is also said to be a possibility.
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.
solidated
mortgage
was
new
Elliott Co.
reported that between 47,000 and 48,000
was
shares of this company's common stock may be offered
some time
in the near futuer through F. Eberstadt &
Co.
Radio
&
Phonograph Corp.
announced that
company may use unissued 1,240,390 shares of capital
stock (par $5) to acquire additional plant facilities ii
May
29, Benjamin Abrams, President,
Traditional underwriter; F. Eberstadt & Co,
needed.
Erie
RR„
(7/12)
June 19 company was reported to
due July
be planning the issu¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler, Har¬
Ripley & Co. Inc. and Lehman Brothers (jointly);
and Harris, Hall & Co. (Inc.)
riman
Florida
June
of
9
Power &
Light Co.
stockholders approved creation of
50,000 shares
cumulative preferred stock (par $100). These
shares are soon expected to be offered to finance part of
construction program which is expected to require, ap¬
proximately $25,000,000
•
new
capital through 1952.
Holeproof Hosiery Co.
June 22 it
was
exceeding 33V3% of the stock held by principal
stockholders following approval on July 6 of 71/2-for-l
and not
split
up.
Lighting & Power Co.
April 14, S. R. Bertron, President, estimated construction
expenditures for 1950 between $19,000,000 and $20,000,000.
This estimate may be raised to accommodate increased
power demands on the system.
If this is the case, more
financing will be necessary, he added.
This may be
done through additional common or preferred stock
financing.
Telephone Co.
Mountain States Power Co.
shares.
long-term bonds and not less than $600,000 additional
stock. Proceeds will be used to repay $1,300,000
common
bank loans, due in September, 1951, and the remaining
$300,000 will go to Central Telephone Co., parent, to re¬
pay temporary advances for construction.
Probable un¬
derwriter: Paine, Webber Jackson & Curtis.
Long Island Lighting Co.
May 18 it was reported company's construction program
in 1950 will cost $20,000,000 which is currently being
financed
by up to $12,000,000 bank loans pending per¬
manent financing which may be done following effec¬
tiveness of consolidation plan.
new
Probable bidders for any
securities include Smith, Barney &
Lorillard
(P.)
approved
creation
of
There
presently
are
Probable underwriter:
outstanding
shares.
72,993
Merrill Lynch, Pierce, Fenner &
Beane.
New England Power Co.
April 24 it was estimated that
financing
will
required
be
to
about
pay
$37,000,000 new
construction cost*
estimated at $40,000,000 for 1950 to 1952. Present plana
are
to issue
in late summer or early fall $10,000,000
and
50,000 shares of preferred stock.
Probable
(1) For bonds—Halsey, Stuart & Co., Inc.;
Harriman Ripley & Co. Inc.; Lehman Brothers; Kidder,
Peabody & Co. and White, Weld & Co (jointly); Union
Securities Corp. and Salomon Bros. & Hutzler (jointly);
Otis
&
Co.; First Boston Corp.; Merrill Lynch, Pierce,
& Beane; Carl M. Loeb, Rhoades & Co.; F. S.
Moseley & Co.; Equitable Securities Corp.; (2) for pre¬
ferred:—W. C. Langley & Co.
:
Fenner
New England Public Service Co.
/
sell 200,000 shares
stock
common
'
application to
of Public Service Co. of New Hamp¬
April 7 SEC authorized
file
company to
or
a
an
sufficient number of shares of J
Central Maine Power Co.
common stock
(about 225,000
approximately the same amount of
money. Probable bidders: Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Coffin & Burr, Inc.; First Bos¬
ton Corp.; Harriman Ripley & Co. Inc. and Goldman,
Sachs & Co. (jointly). The proceeds will be used to pay
shares)
raise
to
bank loans.
.
Niagara
,
,
Mohawk
Power
Corp.
Jan. 19 announced that construction program will neces¬
sitate in 1950 not more than $25,000,000 of additional debt
equity financing, including
or
Probable bidders for
short-term
loans.
bank
bonds:
Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp.: Kuhn,
Loeb & Co.
Panama
June 5 it
(Republic of)
reported that Frank & Co. has been
was
thorized to work out
au¬
plan to refund the outstanding
dollar bonds, of which there are outstanding approxi¬
500,000 of
retired.
a
Co.
bonds would be secured by the $430,annuity annually paid by the United States to the
Republic.
Pacific
April 12
1,000,000
Macy (R. H.) & Co.
May 8 it was reported that company is considering issu¬
ance of $10,000,000 of new securities, either debentures
or preferred stock.
Traditional underwriters — Lehman
Brothers: Goldman, Sachs & Co.
Market Basket, Los Angeles, Calif.
May 25 company announced it plans sale of 4,452 shares
of authorized but unissued, preferred stock, series C,
(par $15) and an additional 30,000 shares of preferred
stock, (par $15) to be authorized. Further details not
available.
new
Petroleum,
Ltd.
(Canada)
announced it plans to file with SEC
company
additional
shares
of
common
stock
shortly.
Proceeds (U. S. currency) will be used for further expan¬
sion and development work in the Alberta oil field. Un¬
derwriter—Eastman, Dillon & Co.
Pacific Power & Light Co.
April 13, Paul McKee, President, disclosed that a group
of 16 purchasers who acquired company's 500,000 shares
stock from American Power & Light Co. on
last, have informed him of their intention to
make a public distribution of these shares at earliest
practical date, which may be shortly after Aug. 6. A. C.?"*
Allyn & Co., Inc. and Bear, Stearns & Co. headed this
group. The 500,000 shares of* common stock are being
common
Feb.
6,
split-up
on a 31/2-for-l basis, all or part of which will
publicly offered. Company also expects to raise
$3,000,000 in new money later this year and a similar
be
in 1951.
amount
•
Pacific
States
Fire
&
Indemnity Insurance Co.
\
'
May 18 announced company plans to enter into a con¬
tract with an underwriting firm for the sale of its
capital stock. Initial capitalization and surplus will be
$2,000,000.
(Oregon)
Co.
April 4, Herbert A. Kent, President, said: "It may be
necessary to do some financing" before Aug. 1, 1951 to
redeem $6,195,450 of 5% bonds due on that date and
for additional working capital to meet expanded sales
volume.
He added that company plans to pay off its
bank loans in full by July, 1950. These loans now amount
to $12,000,000. Traditional underwriters: Lehman Bros,
and Smith, Barney & Co.
3% bonds, the remaining $4,500,000 to be
new
The
000
of
June 6, company announced that it has advised the Wis¬
consin P. S. Commission that it expects to sell $1,000,000
of
firm
May 17 the stockholders voted to increase the author¬
ized preferred stock (par $50) from 75,000 to 150,000
Underwriter—A. G. Becker & Co. Inc.
Houston
La Crosse
new
mately $15,000,000, through the issuance of about $10,-
announced that registration statement is
expected to be filed shortly covering not less than 25%
stock
a
its
exploration and development of natural
gas
and oil operations. It will be financed, in part,
through public sale by the new unit of 1,000,000 shares of
capital stock (par $8). Financing plan submitted by First
Boston Corp. Expected this Fall.
$4.50
Dillon, Read & Co. Inc.; Glore, Forgan & Co., and Leh¬
Co.
shares of cumulative preferred stock (par $100)
over
Supply Co. of Utah
announced plans to create
company
to take
of
plans to sell 250,000 shares. A group of under¬
Credit
stockholders
Mountain Fuel
June 6
shire
Emerson
500,000
of which
30
company
a
Milwaukee Gas Light Co.
April 18 reported contemplating issuance of additional
securities, the proceeds of which will be used to finance
$13,000,000 of first 4%s due 1967.and $2,000,000 of 7%
preferred stock, to fund some $8,500,000 of bank loans,
and for new construction.
No, definite plan has been
evolved.
Probable bidders—Halsey, Stuart & Co. Inc.;
Commercial
March
bonds
(jointly); Kidder, Peabody & Co.; HaniRipley & Co.; Smith, Barney & Co., Kuhn, Loeb &
Co. and Blyth & Co., Inc. (jointly).
bidders:
of
May 26 it
t)00 loan payable in U. S. dollars.
additional production
Associates
$8,100,000 equipment trust certificates due semi¬
annually over a period of 15 years. Probable bidders:
the Canadian Government is
extensive refinancing opera¬
reported
was
Utilities
announced that under a plan filed with
company will be formed to acquire the
Eastern, and of the Brockton Edison Co., Fall
River Electric Light Co. and Montaup Electric Co. and
will issue and sell $22,000,000 of first mortgage and
collateral trust bonds and $8,500,000 of preferred stock.
May 23 it
ance
(Dominion of)
making preparations for
shares
Eastern
offering
with
1,
Underwriter—J.
month.
that
Co., New York.
Canada
June
July
about
stock
of
end
I-
of preferred stock.
Probable bidders:
Kuhn, Loeb & Co. and Smith, Barney & Co. (jointly);
First Boston Corp.; Lehman Brothers; Kidder, Peabody
&
Co., Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Glore, Forgan & Co. Pro¬
ceeds are to repay bank loans and for construction pro¬
100,000
stock
Virginia Street, Reno, Nev.
additional
line..
Brothers
bonds
Price—To be filed by
Glore,
York,
Duquesne Light Co.
was reported that company may issue about
issuance of
To be determined by
ders:
New
gram.
American Natural Gas Co.
May 18 it was announced company plans
380,607 shares of common stock (no par)
one
of
Co.,
>
June 22 it
Illinois
a
stockholders at rate of
Edison
,
May 15, Ralph H. Tapscott, Chairman, said the company
will require approximately $90,000,000 of "new money"
through the sale of securities. No permanent financing is
contemplated before this fall, however, and current ex¬
penditures are being financed by short-term loans, of
which $16,000,000 are now outstanding.
It is anticipated
that $257,000,000 will be needed for the construction pro¬
gram over the next four years. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley & Co.; First
Boston Corp.
•
American Investment Co. of
held.
man
Consolidated!
reported company may do some financing
was
man
Boston Corp., are expected to offer the stock.
45
_
Piedmont Natural Gas
June
12
it
announced
was
sell $900,000
Co., Inc.
plans to issue and
company
of 3%% first mortgage 20-year bonds and
common stock to finance con¬
$300,000 of preferred and
struction of
Public
new pipe line project in North
Application is before FPC.
proposed
a
and South Carolina.
Service
..
Electric & Gas Co.
April 17 stockholders approved the issuance of $90,000,000 new bonds for the purpose of refunding $50,000,000 3Vs% bonds due 1965; $10,000,000 3Y4% bonds due
1968; $15,000,000 3% bonds due 1970 and $15,000,000
bonds due 1972.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan, Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); First
Boston Corp.
■
'
' ';/
Raytheon Manufacturing Co.
June 1, Charles F. Adams, Jr.,
President, announced that
arrangements were being made for
summer
to
common
additional
000
basis of
This
one
common
share
offering later this
approximately 290,shares of the company—on the
an
stockholders of
for
each
five
common
shares
offering, he said, will be underwritten by
held.
a group
of investment bankers headed by Hornblower &
Weeks.
r
Reynolds Metals Co.
June 7 company announced
on
increasing authorized
J
■
*
/'
stockholders will vote Aug. 9
stock from 1,500,000
common
-
Continued
on
/-
page
46
^
46
The Commercial and Financial Chronicle
(2706)
Continued,
from
March 3 it
Schering
this
for
000,000 3y4% bonds and for construction costs.
Bear, Stearns
June
8
authorized
SEC
Washington
of
trustee
$
Gas
negotiations with "all interested
parties" for the sale of its common stock interest (62,910
shares) in Southern Utah Power Co. for not less than a.
$550,000 base price, plus adjustments.
Tampa Electric Co.
Co.
Finance
reported that company in August
is ex¬
pected to register with the SEC additional shares of its
stock. May be offered through dealer-manager group
probably headed by First Boston Corp.
Power Co.
Sierra Pacific
announced it plans to finance and per¬
manently refund $2,200,000 of bank loans by the sale of
debentures and common stock prior to Oct. 31, 1950.
June 2 company
Webster Securities Corp.
Stone &
it was announced company plans to spend in
$34,000,000, of which $11,600,000 will
11
the next four years
spent in 1950. It is estimated that $6,000,000 of new
will be required in this year, to be raised by
*he sale of $3,000,000 of bonds and 60,000 shares of pre¬
ferred stock (par $50). Probable bidders include Lehman
W.
C. Langley &
Co.
filed with SEC, to sell its
South
Gas
Jersey
Co.
&
Southeastern
June 5 it
Gas
III.
Chicago,
Co.,
connection with its proposed new
pipe line in Michigan to cost approximately
Application is before FPC.
of the
Hearings
in Utah to cost
will
be held
like
$1,400,000.
2.25%
a
at
ratio
who have fairly substantial unsold
stocks
on
their shelves will be able
to concentrate
the
task
of
almost
cutting
entirely
down
inventories during the
on
these
next fort¬
night.
_jThe
of
rela¬
^id^bomp^y^jplans
through
additional
of
Shares
October, and 166,604 additional common
tember. The latter will be offered to
in
the ratio
of
one
official
An
loan.
was
$20,000,000
about
Co.'s
of
the
0
Develop-
agree on
I
Mi
price for the
f
common holders in
0.85 share of pre¬
in U. S.
able
Issued
in
dollars.
1930
a
4%
April 25
Light
by American.
RR.
Co.
bonds.
reported
company
Probable
bidders:
Halsey,.
Stuart & Co.
Inc.; Harriman Ripley & Co., Inc.; Lehman
Merrill, Lynch, Pierce, Fenner & Beane.
With J, B. Maguire & Co.
|)!|| Altltnilftlofl hlf
(Special to The Financial Chronicle)
DSmIam Oa
The
riman
board
of
IfOi
directors of Har-
Ripley & Co. Inc., 63 Wall
Street, New York City, at a meeting held yesterday elected S. Leland Dill an Assistant Secretary,
Mr. Dill has been
member of
a
BOSTON, Mass.—Victor G. Dugal has become associated with J.
B.
Maguire & Co., Inc., 75 Federal
was formerly with Wil¬
liam B. Nichols & Co., Inc. and
was
manager of the trading de¬
Street. He
partment
for
Childs,
Jeffries
&
Thorndike.
since formation of the
in June, 1934, prior to
1, which time he had been with The
the
planning issuance of $10,-
Brothers; Kidder, Peabody & Co.; First Boston Corp.;
113111111311 If iplGJf
cou-
&
reported company plans issuance and sale
La Hill MppUIIIIGU lljf
«
;
with
Power
(jointly); Merrill Lynch, Pierce, Fenner & Beane.
-
Canada to Refund
American
offering for sale and selling
000,000 first mortgage bonds. Probable bidders: Halsey,
in Sep¬
funding issue.
85,000
to
bonds
present shareholders
ment Bank of Puerto Rico blamed
to
(b)
Worcester County Electric Co.
share for each eight shares
new
Pacific
of
first half of
during the
bidding
competitive
staff
Porter W. Cooper Co.
company
these bonds are due Oct.
(Special to The Financial Chronicle)
1960 and subject to call
held.
Stock not taken was to be
Oct.JL, City Company of New York, Inc.
FT. WAYNE,
Ind.—Porter W.
next on 60 days' notice^
and the National City Bank of
offered in exchange for the pres¬
Cooper & Company is engaging in
The latter privilege is expected N..Y.
He will continue as Man- a securities business from
ent preferred shares.
offices
to be exercised some time next ager of the statistical division of
in the Ft. Wayne Bank
Building.
Dallas Power 3%s
month.
the Buying Department to which
Richard L. Cooper is proprietor of
position be was appointed in SepSponsoring bankers turned the
the firm.
Dallas Power & Light Co.'s $24,Walston, Hoffman Adds tember;
ferred
for
each share of
common
pon,
-
f948.
500,000 of 30-year first mortgage
sight bonds, purchased recently, free to
when find their own level late last week.
with
Panhandle Eastern Pipe Line Co.
Is slated to market two new issues
or
Stuart & Co. Inc.; Lehman Brothers and Bear, Stearns &
first-; mortgage
$10,000,000
,
issue calendar is
tively light for that period
nothing really sizable
in
now until around
July 12
new
stock
June 14 it
^
preferred stock, $100,
The
Canadian
Government ts
cumulative, which had been ex¬
pected to be opened to public sub¬ reported making preparations, &>r,
scription last week, was formally an extensive refinancihg operation. It is understood to plan res
offered late on Monday.
The
shares
had
been
offered funding of a $100,000,000 loan paythe
capital
stockholders,
Western
^proximately
sell
of
originally to
announced Washington P. S. Commission
competitive bidding all of said shares of Washington
Co.
basis for long-term
Chemical
Co.'s
Utah Power & Light Co.
Spencer Chemical
Spencer
was
petition with SEC asking for (a) distrioution of
a
company's
before the Utah
^
inability to
shares
filed
September, after a study
project.
Treasury issues.
Investment bankers and dealers
May 22 it
nm
May 23, G. M. Gadsby, President,
June 12 if was announced company plans issuance and
sale of first mortgage bonds, debentures, preferred stock
and common stock in
Tex.
announced company plans to build a 325-
was
mile 22-inch pipe line
holding? of 154,231.8 shares of
stock as to which an
Michigan
(par $1) to the pub¬
by F. Eberstadt & Co., Inc. Expected after July 4.
Water Power Co. held
common
exemption from competitive bidding is requested.
covering the sale of approximately
new common stock
lic through a nation-wide group of underwriters headed
Utah Natural Gas Co.
P. S. Commission in August or
its amended plan
SEC
325,000 shares of
authority to issue
$5,000,000 of Vk% to 41/4% collateral rifetes to be due
serially 1951 to 1965. Proceeds to refund debt incurred
in acquiring subsidiary lines for the system.
$25,000,000.
South Jersey Gas
Stuart & Co. Inc.; Drexel & Co.;
Rhoades & Co.; Lehman Brothers and
& Co. (jointly); Union Securities Corp.
Washington Water Power Co.
be
June 15 United Corp. proposed, under
be
Co.
Transcontinental Bus System, Inc., Dallas,
money
Brothers.
will
Halsey,
Loeb,
with the
ment
June 8 company applied to ICC for
South Carolina Electric & Gas Co.
May
M.
Tide Water Power Co.
May 4 stockholders have approved an increase in the
authorized common stock to 1,000,000 shares from 500,000
shares.
It was understood that 125,000 shares may be
sold.
Traditional underwriters: Union Securities Corp.;
Co. Inc.;
Probable bidders for bonds: Halsey, Stuart &
sales
April 25 it was announced company plans to raise
Warner (William R.) & Co., Inc.
$4,700,000 in new money through sale of additional-^
June 12 Elmer H. Bobst, President, announced that cor¬
securities, the proceeds to finance in part 1950 con¬
struction expenditures.
poration proposes recapitalization and change in name
^
to Warner-Hudnut, Inc.; also to file a
registration state¬
ley & Co.; Riter & Co
was
stock
and
Smith, Barney & Co. (jointly); First Boston Corp.
and Blyth & Co., Inc.; Harriman Ripley & Co
Inc.;
Kidder, Peabody & Co.; White, Weld & Co.; Salomon
Bros. & Hutzler; Harriman Ripley & Co. Inc.
Probable
bidders for common: Blyth & Co., Inc.; Union Securities
Corp. and Smith, Barney & Co. (jointly); Lehman
Brothers; W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly).
^ 1
Power Co.
Electric Co. to undertake
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Kid¬
der, Peabody & Co.; F. Eberstadt & Co.; Allen & Co.;
company to be formed by United States & Inter¬
national Securities Corp.; Dillon. Read & Co.; F. S. Mose-
it
bonds:
Carl
new
Seaboard
bond
and
Utah
Southern
registered with the SEC in the near future and offered
for sale to the highest bidder by the Office of Alien
Property. Probable bidders: A. G. Becker & Co. (Inc.),
Union Securities Corp. and Ladenburg, Thalmann & Co.
June 3
the
short-term loans in connection with the
company's construction program, and for carrying for¬
ward the expansion program into 1951. Probable bidders
$55,000,000 of bonds. Probable bidders:
Corp. and Harris, Hall & Co. (Inc.)
Boston
Shields & Co.
was announced that the company's entire com¬
stock issue (440,000 shares;
was expected to be
from
to repay
(jointly); Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
Proceeds would be used to refund $30,-
Corp.
May 4, it
mon
summer
First
Proceeds
used
reported tnat company expects to issue
was
The
Reynolds & Co.
Probable underwriter:
held.
Edison Co.
California
Southern
45
page
shares to 2,500,000 shares. The increase is being sought
to make additional shares available for any future need.
Thursday, June 29,1950
...
The issue was taken in competi¬
PHILADELPHIA, Pa.—Walston,
Hoffman &
the
Baltimore
^
'
and
Philadelphia-
Stock
With Bond & Share CorP
Mitchum, Tully Co. Adds
Goodwin, members of
New York
/Cnofliol
fn
nP..»
D......
-
n
1
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
,
SAN
FRANCISCO,
Calif.
—
INDIANAPOLIS, Ind.—Louis S.
Hensley, Jr. has been added to the
Exchanges, an¬
Walter Fruehling has become as¬
staff
of
thejj^
Indianapolis Bond and
sociated with Mitchum, Tuily &
of Robert T. Hughes as a regis¬
Share Corporation, 129 East Mar¬
Only one important issue * was the bonds for public offering at tered representative in their Phila¬ Co., 405 Montgomery Street, mem¬
bers of the Los Angeles Stock Ex¬ ket Street, members of the Mid¬
up
for bids this week, namely 101.33 to yield about 2.685%.
delphia office, 1420 Walnut Street.
change.
He was formerly with west Stock
$11,000,000 of Equitable Gas Co.'s
Exchange.
Only about 20% of the issue had
Wagenseller & Durst, Inc. and H.
20-year, 3%% sinking fund de¬ been sold when the syndicate
of debentures.
bentures
offered
for
the
tive
of 100.82999 with the bankers repricing
bidding
at
price
a
nounce
the association with
William E. Clegg Joins
account
R. Baker & Co.
agreement was terminated,
ac¬
Philadelphia Co., sought cording to street estimates, leav¬
Livingston, Williams Co.v
after by some eight competing
Joins Westheimer & Co.
(Special to The Financial Chronicle)
ing some $20,000,000 to be moved.
groups.
Current quotations in the "free
(Special to The Financial Chronicle)
CLEVELAND, Ohio —William
The selling company will use
market" rule small fractions under
E. Clegg has become associated j
WILLIAMSTOWN, W. Va. —
the proceeds to finance retirement the
original price.
John V. Everett has become asso¬
of 100,000 shares of its outstanding
with Livingston, Williams & Co.,
ciated with Westheimer & Co. of
$6 cumulative preference stock.
Taking a Breather
Inc., Hanna Bldg. Mr. Clegg was Cincinnati, members of the New
July holds little promise as a
Broken up by the Fourth of July
formerly with Saunders, Stiver & York and Cincinnati Stock Ex¬
holiday, next week will find the producer of new corporate financ¬
changes.
He was formerly with
Co., and prior thereto conducted
new issue market
Bache & Co. and more recently
virtually at a ing, from a look at the calendar
for the month. But things will be his own investment business i« hastronducted
his own investment
complete standstill. Several equity
fairly busy in the tax-exempt field Cleveland.business in Williamstown.
^
offerings are in prospect, none of where indications are that 200
of
Two With
The
LOS
them very large, but in
view
of
the severity of the market's break
the
on
seemed
current
to be
war
scare,
considerable
there
doubt
that these issues will reach market
on
schedule.
million
or
be
up
may
more
or
such
paper
for bids.
Weighing heavily in the total
financing for new housing
will be
by
states
and cities desiring to
tjie gun on the new local
housing authority.
The latter is
beat
expected
Momentarily, at least, there does midway
to float its first issue
through September, act¬
With Frank E. Hailstone
(Special to The Financial Chronicle)
servers
still feel that the key to
the situation, there is Washington's
Idea
on
money
which
now
Meanwhile it
Puerto
Rico
was
has
disclosed that
halted
negotia¬
tions with bankers here for a $25,-
looks 000,000 Water Resources Authority
(Special
to The
become affiliated
with
Mit¬
chum, Tully & Co., 650 So. Spring
Street. Mr. Tescher
previously
was
with Holt & Collins.
-
:
Joins Witter Staff
.
(Special to The Financial Chronicle)
SAN
R.
Glen
FRANCISCO,
Brewer has
Calif.
become
—
con¬
Chronicle)
Financial
nected with Dean Witter & Co., 45
Mo. — Mrs. Montgomery Street, members of
Helen C. MacLeod has joined the
the New York and San Francisco
L. Morgan is with Frank E. Hail¬
staff of Stern Brothers & Co., 1009
Stock Exchanges.
stone & Company, 525 Walnut St. Baltimore
Avenue, members of
the Midwest Stock Exchange.
CINCINNATI, Ohio—Thompson
KANSAS
CITY,
E. T. Reel Co. Formed
F. S. Yantis Adds
not appear to be any serious coning under the Federal Housing Act
<ahrn as regards the immediate of 1949.
outlook for high-grade bonds. Ob¬
Stem Brothers Adds
Chronicle)
ANGELES, Calif.—W. Or-
mond Merritt and Paul E. Tescher
have
-
——
Mitchum, Tully
(Special to The Financial
With Beer & Co.
(Special to The Financial Chronicle)-;^*-"
CHICAGO,'
111.
—
Charles
S.
Crane has been added to the staff
of
F.
South
of
the
S.
La
Yantis
Salle
Midwest
&
Co.,
Inc.,
135
(Special
(Special to The Financial Chronicle)
NEW
ORLEANS,
,
La. —Paul
Kemp has become affiliated with
Beer
&
Street, members members
Co.,
of
839
the
Gravier Street,;
New
York
to
The Financial Chronicle)
LOS ANGELES,
and
Stock Exchange. New Organs Stock Exchanges.
■*'
Calif.—Eugene
T. Reel is engaging in a securities
business
from
offices ■; at
6767%
Yucca Street under the firm
of E. T. Reel & Co.
name
Volume 171
Number 4920
.
The Commercial and Financial Chronicle
.
.
(2707)
Wit!: Waddell & Reed
When and What to Buy
By ROGER W. BABSON
Mr. Babson contends present is not time to
stock-up on meats
poultry and housewives should wait until next fall. Says
James R.
ated
or
time to
buy butter. Holds
and June
next
Arnold
with
are
Waddell
now
and
affili¬
&
Reed, Inc.,
Merchants Bank Building.
July best
January is best time to buy an
up on eggs
Hessler, Elmer A. Wilson
or
Mathews Adds Three
automobile.
(Special to The
Financial
Republic
With
(Special to The Financial Chronicle)
INDIANAPOLIS, Ind.—Herbert
f
S.
spring is best time to stock
With Central
(Special to The Financial Chronicle)
HIBBING,
deaii
has
Minn.—Ted
become
A.
■v
Na-
associated
with
Central Republic Company.
He
was
formerly local manager for
Johnson-McKendrick Co., Inc. and
prior
thereto
was
with. J.
W.
ST.
Waddell
LOUIS, Mo.
American
are a number of
housewives
who
read
this
column,
perhaps
a
few
money-saving hints on household
buying
may
in
come
handy
at this time of
it
is
Meat
and
poultry
ac-
for
count
a
nort
artfP
large
extremely difficult to forefar in advance the best
buying
rxf
part
of
kerosene
DIVIDEND NOTICES
PACIFIC GAS AND ELECTRIC CO.
low
In¬
total
substantial
savings
during the
year.
Especially
ould this be true if
your
family
the fortunate possessor of a
deep freeze unit, since economical
quantity buying is not feasible
/Without
adequate
cold - storage
*.i$
invest in
if you
recommend
that
deep-freeze unit,
a
do not already own
This is not the time to
stock up
meat
on
or
even
poultry.
mally, these should
gain
counter
in
be
the
Nor-
the bar-
on
late
fall
early winter, say November
December. Marketings of
or
or
cattle,
hogs,
and
poultry
items:
are
Mathews
oireex.
to
The
of
Financial
rfapu
Merrill
UI
Fenner
times
uuics
Try
for
1U1
and
canned
lcw
few*
a
luck
your
other
uuici.
canned
corn
in July,
tomatoes
Pierce
fierce,
Lincoln Build-
Beane,
when prices normally are at sea-
sonal lows.
Rice and flour usually
are good buys in August or
September, lard in December, and
fruits
February.
Also do
in
January
or
Financial
Qu|nn CorD
neglect
jn
fees
0fflces
business from off
,
^
The
1
modern
produce
a
healthy
surprising
I eggs during
hen
can
number
(Special
The
to
guess
April, and May she really settles
?down to business, with an output
junequalled in size and quantity in
result
plies,
;
of
this
prices
egg
of
pressure
usually
Financial
Hanford
their seasonal low point
the
spring.
excellent
JTartc
Spring
storage
howpvpr
ugtes,
characteristics,
nmx;
are
u
now
nnr
a
pur-
chase in many sections where
layline has been a little late this vear
!!? V;
of
Frices
i
RAILWAY
have
f y
Board
on
June
of
a
19,
outstanding
July 6'
July
17.
of
clared
July
of
as
1950<
authorized
share3
the
to
the
a
the
a
share
on
the Capital
Company, payable
of the
1950,
record
the
at
July 7,
L. G.
of
the
best
since
the
holders
of
CLARK, Treasurer
June 21, 1950
50c
should
reflect
There
heavy production.
lag in cheese,
best buying opportun¬
is
however;
ities
good
cured.
to
to
appear
since
be
cheese
in
must
be
July,
owing
to
seasonally
output/
Coal
heavy
and
nants
of
fuels.
In
also
practice
both
of
hard
the
July
of Twelve
29,
play
Cents
1950,
no
has
and
ord
at
the
close
of business
an
riod
of
during the
Bruce H.
-v>.
George A. Morrell, V. P. & Treas.
slack
should
take
consumption.
advantage of
New
York, June 28, 1950.
NOTICE
The Chase National Bank of the
New
these
result
in
price
of
August
concessions
demand
or
on
THE
and
the
CHASE
a
City of
dividend of
the 7,400,000 shares of
.
OF THE
CITY OF
July 7, 1950.
The transfer books will
NATIONAL BANK
.
vast
on
the close of business
often
industry is so
interplay of price
share
declared
capital stock of the Bank, payable
August 1, 1950 to holders of record at
September
bituminous
petroleum
has
the
coal.
The
York
40c per
also
lack
CLARK
A.
Treasurer
-
\
NEW YORK
STATES
Hoofing Company
England Gas
I
and Electric Association
|
COMMON DIVIDEND NO. 13
|
and EXTRA DIVIDEND
|
|
The Trustees have declared
the regular quarterly dividend of
twenty-two and one-half cents
(22lAt) per share, and an extra
dividend of two and one-half
cents (2lAt) per share, on the
|
i
I
|
|
|
|
|
|
§
§
|
of the
Association, both payable July
I
COMMON
|
|
|
SHARES
|
|
|
15, 1950 to shareholders of
record at the close of business
June 30, 1950.
June 22, 1950.
',v
|
Dividend on
Preferred Stock
A
quarterly dividend of
thirty-one and one-quarter
cents (31.25c)
per share on
the
Preferred Stock of this
company
payable
has been declared,
July 1, 1950, to
on
stockholders of record June
16, 1950.
|
H. C. MOORE, JR., Treasurer
Ross Q. Allen
|
Secretary
and
Treasurer
Call for
PHILIP MORRIS'
New York, N. Y.
June 21, 1950.
in connection with the
not
be closed
payment of this
dividend.
A.
J. EGGER
•Vice President and Cashter
Rfl YonieR
PRODUCER
Philip Morris &Co.
regular
OF
Ltd.. inc.
on
dividend of
the Cumulative Pre¬
WOOD
ferred Stock, 4% Series, and the regu¬
lar quarterly dividend of $0,975 per
share
on
the
Cumulative
Preferred
Stock, 3.90% Series, has been declared
payable August 1, 1950 to holders of
at the close of business on July
17, 1950.
There has also been declared a regu¬
quarterly
$0.75
dividend
of
on
the
Common
Stock
Company
($5
Par),
1950
holders
to
at
29,
the
of
of
per
the
payable July 15,
Common Stock of
close
of
business
on
1950.
to
a
resolution adopted at
the Stockholders' Meeting held on July
10, 1945, no Certificate representing a
share
or
shares
of
Common
Stock
of
the par value of $10 each is recognized,
for any purpose, until surrendered, and
a
Certificate
Common
each
Holders
or
Certificates for new
the par value of $5
been issued therefor.
Stock of
shall
of
have
Certificates
for
shares
of
Common Stock of the par value of $10
therefore, urged to exchange
such Certificates,
for Certificates for
new Common Stock of the par value of
each
are,
$5 per share, on the basis of two shares
new
Common Stock $5 par value,
of
for
each
share
of
Common
Stock
HIGHLY
PURIFIED
quarterly
share
per
Pursuant
price cuts when available.
You thereby will save
money and
and
will not close.
22, 1950.
New
record
summer
stocks
July 11, 1950. The
on
books
SAVANNAH, 'GEORGIA
June
You
help to smooth out the in¬
dustry's production curve. Heavy
on
Iron
$1.00
Wallace, Treasurer
D I V I D E ND
pe¬
Ohio
SOUTHERN
share
BANKING
WRIGHT
^iiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitniiiiiniimiiHiiiiiiiiiiiiiiiiji
lar
CwoirftfwiM
H.
1950
Cleveland,
record
pro¬
summer
June
The
Checks will be mailed.
cut prices in April, as
inducement to customers to fill
their bins
of record
transfer
to
stockholders of record July 7, 1950,
as
shown
on
the
books of the
ducers to
!
on
July 7, 1950.
liquid
anthracite
the close
the outstand¬
on
declared, payable July
to stockho'ders of rec
an
times, it is the
June 26,
of
share on
value Common Stock
par
been
29, 1950,
per share on
capital stock of
John Morrell & Co.
paid
at
July 3, 1950.
A dividend of $.50 per
the
84
the
he
de¬
ing Common Stock, payable
COMPANY
($0,125)
will
stock
the
OTIS
CO.
One-Half
on
Com-'
to
ELEVATOR
price determi¬
as
normal
and
Ottumwa, Iowa
Oils
important part
dividend
Company,
factors
Seasonal
A
well
/
&
such
illllUllllllllllllllillillllllllllilllllfllllllllllilllllllliillHIIIIUilllillllllllllllii
-
DIVIDEND NO.
November,
Evaporated milk is likely
less expensive in June or
be
MORRELL
of
w
Cumula¬
the
August 1, 1950, to stockholders
Common Dividend No. 171
JOHN
of
of
J
time
a
share
per
|
payable
that, time-
at
has
Directors
|
|
Cents
record
to
market
busi¬
business *
July normally
buy butter,
or
time
of
st0Ck
close
.
facilities, June
close
1950.
dairy products are Shares of said stock at the close of business
rather closely related to the milk on July 6, 1950.
1
flow, which is at its seasonal peak By order of the Board of Direct
/around June. If
you have storage
-JOHN J- Q'brien, secretary
is
stockholders
to
payment
(25tf)
$5.00
Vice President <& Treasurer
quarterly dividend
a
THOS.
dividend of fifty cents
24,
V
Company
such dividend -&> be
1950.
<
the
Stock
payable July 14, 1950
business
of
26, 1950, a
per
share was
$1.25
Preferred
NOTICE
Board of
clared
1012 Balti-
The Board of Directors has de¬
LOUIS
this
Board
Weatherhead
June
MORRIS
DIVIDEND
_
TECHNICOLOR, Inc.
(50c)
Twenty-five
all
on
of
of
Company
the
The
upon
of
|
My
may
COMPANY
Directors
1950,
dividend
share
per
of
held
pany,
|
Stock
ST.
of
of
declared
—
connected'with
DIVIDEND NOTICES
ness
&
meeting
become
?
notice
MINNEAPOLIS
Treasurer
„
of
THe
Beckett,
Company,
CORPORATION
CITY, Mo.—Henry B.
,
~7Trr=
dividend
a
tive
Calif.
has
Waddell & Reed, Inc.,
Avenue.
,:v;
■
J.
m0re
DIVIDEND NOTICES
during
eggs also
nrp
nowever,
at
At
The
KANSAS
f
Francisco, California
Directors
PRODUCTS
for about
'V~
San
The Weatherhead
at
Waddell & Reed Adds
Geers has become
14,
In¬
at
Chronicle)
FRANCISCO,
R.
June
Florida, 111
DIVIDEND NOTICES
affiliated with Skaife &
Company,
110 Sutter Street.
good time to buy an automo-
a
sup-
are
car
bile.
other three-month period. As
any
*a
be
one
was
of
on
per share upon the
Company's Com'
mon
Capital Stock. This dividend will
be paid by check on
July 15, 1950, to
common stockholders of
record at the
close of business on
June 30, 1950.
The Transfer Books will not be
closed.
holders
'SAN
Edward
in 1940
came
staff
Directors
dividend
January
five
of
population.
is that next January
every
of
But in March,
a year.
saturation point
when there
the
a
Skaife Co. Adds
sales, the - August fur sales and
the clearance sales df2summer
ous
.
joined
NATIONAL DISTILLERS
.
_
has
Ind. —B.
pn{?a{?jnfr
seasonally
r>
i
r>
r>
i
i
i
r>
;heavy at that time; and this-goods. Remember,
too,,that noth- VV1U1 laUI w KUaOlpn Co.
bunching of supplies should re- ing is a bargain if you cannot af(Special to the financial chronicle)
suit in price concessions
over re-, ford it or if it lacks quality! Just
SAN
FRANCISCO, Calif. •—
tail counters.
The best grades of a thought to use when
trading for John L. Druhan, Jr., is now assoheavy steer beef, however, usually an automobile: Tell the dealer
ciated with Paul C.
Rudolph &
do not come on
the market in that with one car
today for every Company, 749 Market Street.
quantity until late winter or early four people, a decline
fin auto
spring.
prices may soon come. The previEggs and Dairy Products
of
Northeast Second Avenue.
(Special to The Financial Chronicle)
not
Board
1950, declared a cash dividend for the
second quarter of the
year of 50 cents
E.
MIAMI, Fla.—Philip A. Maran-
^ast Main btreet*
early
"white sales," which usually offer
real bargains in soft goods. Keep
in mind the February furniture
The
Chronicle)
CRAWFORDSVILLE,
m
seci^ities
in
lay in your
in the fall,
Quinn Corp.
The
formerly
Corp. Adds
vestors Corporation of
M.
to
was
Common Stock Dividend No. 138
(Special to The Financial Chronicle)
gella
August.
Canned salmon usually is cheapest in September. Shop for bargains in dry beans in November
and December, and
supply of potatoes
He
win*
ing.
best
on
Street.
West
Shearson, Hammill & Co.
Chronicle)
fiq
Chronicle)
Fetters has joined the staff
Sixth
with
DIVIDEND NOTICE
ANGELES, Calif.—Adolph
Shields & Company, 510
Lynch
l-,ynCn,
Merrill
&
B.
seasonally
P. H.
The Financial
to
Investors
aj-dll
(Special
the
are
in June, canned
peas
citrus
one.
cSlS
mtamt
Miscellaneous Suggestions
buying
uuyiug
result
LOS
f
(Special
pur-
cash
you
consumption is at relatively
liems
items
tant
ldin
and
(Special
Hills, and Da-
T*
With Merrill Lynch Co.
summer
seasonally
^wa
»
^
* J/*
p
^
levels.
Here
should
the
rising
are
of
impor-
these
during
'
With Shields & Co.
+
products,
ecu
chasing
strongly
oil
months. Gasoline prices, however,
will usually be lowest in Decernhor
Ton,,
ber or January, xirHo™
when rafinorc'
refiners'
stocks
telligent
I
for
However, pressure of mounting
refiners' stocks, low demand, and
intensive competition frequently
families.
space.
times
William A.
Goldsbury & Co.
Chronicle)
n
cast very
the food budget
of
most
in
intricate that
so
result in price cuts in fuel oil and
year.
1
making factors is
& Keed f
—
Deems has become associated with
Waddel & Reed, Inc., 408 Olive
S|.
I
Knowing there
47
CELLULOSE
SPECIAL and REGULAR
DIVIDEND
The
Board
has declared
dend of
(25<)
a
of
Directors
special divi¬
twenty-five cents
per
share
on
the
Common
Stock, and also
the regular
quarterly divi¬
dend of fifty cents
(50tf)
per share on the Common
Stock, each payable August
15, 1950 to stockholders of
record at the close of busi¬
ness
July 28, 1950.
I J—«*•
-
EDWARD BARTSCH
of
President
the par value of $10.
L. G. HANSON, Treasurer!:
'
Tzzmmzmmmmsszmmmz
June 20. 1950
v
The Commercial and Financial Chronicle
(2708)
'*
*»***-"
■
-
...
—*♦
✓
Thursday, June 29,1950
...
•<. m
k
,
■■
-
/*
si
y'
/
businesses,
new
i-
BUSINESS BUZZ
for
need
no
legislation
'uL'.JtiS
.
n...
from tbo Nation's Capital
,
i "
tax
rate
and
41%
to
and
"big" corporations for present and
future political advantage.
taxes
,
such
It is
such
of
enactment
now,-and
an
long time between
a
Truman's belief
on
,
FDIC assessment credit bill prob¬
proposition that a number of peo¬
ple are privately betting that the
chances -w of
its
happening
are
poorer than the chances of its not
happening.
' • •
tax
smart
boys
irked
particularly
are
to such countries as
ing out of the House Committee Committee throats, as it were, a
a tax bill he wanted;
business hike tax by getting it an
was a bill which would sad¬
accomplished fact in the House.
dle upon
business most of the
The Chairman of the Finance
burden of offsetting excise tax re¬
Committee is, of course, Senator
ductions. Mr. Truman called his
Walter F. George (D., Ga.), who
chief legislative lieutenants to the
opposes increased taxes on ^cor¬
White House. " ^
■
f
;
porations. Tom Connally of Texas
These lieutenants went back on
is the next ranking Democrat. He
the Hill and by dint'of pressure
is far from pleased with what Mr.
md a little deal or so, got the
Truman did to the natural
the kind of
goods for U. S. dollars for capital
to
by some $700,000,000
fcry.M '.taxes
is
-
cuts
as
\
were
Negatively, excise tax
salvaged, at least as far
House
cerned."
prospects
Negatively, the President
seemingly
was
con¬
were
of the
taken out
box where he would have to veto
a
popular tax cut because it did
not boost enough the taxes on the
voteless
corporations.
Positively, there
and
was
"big"
Committee.
economy as
tively, the whole thing put the
Republicans in an awful spot be¬
cause they couldn't take the posi¬
tion of opposing excise tax cuts
and supporting voteless corpora¬
•
tee
,
on
on
the Finance Commit¬
able
be
may
to
remind
,
,
watching, however. Sure, the
servative
as,
much
during
the
r.
Senators
worried
the
year,
first
when
con¬
as
few
there
not
quite
they
are
Hutchinson
A.
Rich¬
of
mond, anti-Byrd Democrat, to the
Commission.
Federal Trade
Scott
of
Lucas
Illinois,
the
also
both
political
the
sometimes
be
can
that
were
time
before
later-selected
a
ated
repudi¬
by Mr. Truman prior to his
tough election contest,
the has-,
on
ing point and natural
issues,
gas
particularly.
The Senate also
ing
"rid¬
on
ers" obnoxious to the Administra¬
Senator Robert
>
member
is
Kerr's
ator
S. Kerr
another
the
of
natural
vetoed after
of Ok¬
Democratic
Committee.
gas
Sen¬
bill
was
left-wing campaign
to set up Kerr as the vicious oil
millionaire who was fathering a
bill to raise gas prices to poor and
a
cold gas consumers,
.
.
Finally,, there
is
However,
be
upon
it
is
to go
a
better bet that
than
the session from the standpoint of
some
of
so,
sea¬
achieved
a
difficult, they say.
(This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
are
on
the Finance Com¬
mittee
six
Mr.
Truman
might be able to
the vote of Senator
Add
to
officials
the
who
list
are
of
those
not
director of the RFC.
new
rare
afraid
to
Mr. Gun¬
system of investment banking
companies under the wing of the
Federal
system
of
Standard Gas & Electric
Television
^
Reserve
System,
and
a
Government
Cinema Television B
Scophony-Baird Ltd.
m.s.wkn&co.
of
ESTABLISHED
40
directorate.
This
pre¬
said,
on
its
Treasury money.
most
small
business
HA. 2-8780
Teletype N. Y. 1-1397
For
cept at
a
loss, and if RFC had not
been making
big
loans, plus
ob¬
taining receipts from the "Fanny
May" mortgage market, it would
not be making a profit.
more
liberal
good
measure,
terms, he
would
The bill's
added for
necessitate
rise in the interest rate on busi¬
WE SUGGEST
RIVERSIDE CEMENT CO.
CLASS B (common) STOCK
A leading
in
producer of cement
fast-growing
Southern
California.
Analysis of this Company and
a
review of the Cement Indus¬
try available on request.-
Selling about
$9.25
LERNER & CO.
Investment
loans.
:v"'/:
Large Appreciation Potential
loans
under $75,000 cannot be made ex¬
Securities
10 Post Office Square, Boston 9.
If,
say.
zation
HAnover 2-0050
Underwriters and Distributors
1919
Exchange PL, N. Y. 5
with
Finally, Mr. Gunderson bluntly
ness
submitted officially by
Employees Corp.
;
consistent with their job
interest
^%Tr.
Gunderson read a prepared
Equipment Corp.
Trad Television
Video Corp. of America
the
into
and
amazing candor, was
a "profit" because it
didn't have to pay corporation in¬
come taxes, but only l%ths to 2%
a
RFC
>
RFC, Mr. Gunderson further de¬
broadening of RFC lending powers.
statement
views.)
own
The
clared
speak out, Harvey J. Gunderson,
Clyde R. Hoey of North Carolina,.. the
upon
"Chronicle's"
the
able to make
sugar
There
RFC.
ness
report
the more
*
a
tax boosts on business.
higher
That will be
that they will,
by the board, or
privately
Ed
the basing point bill as the
important legislation in all
banking
protecting their depositors and the
limitations placed upon them by
if the excise tax cuts have
supervisory agencies.
increased
even
Johnson of Colorado, who looked
most
the
out
businesses
small
private
corporation income taxes will not
justment"
that
ap¬
unworkable
scheme will have to be found*
high tax laws are driv¬
very
said.
soned minds.
Senator
emphasized he was
he
banks, by and large,
There has not yet been even a
go about as far as they, possibly
beginning of thought on strategy. can in making loans to small busi¬
count
1949,
new
tion, such as restoration, for ex¬
If business had a fast amortiza¬
ample, of the "peril point" pro¬ tion
period, it could find that most
vision
of
the
Reciprocal Tradei.
of its loans were bankable, he
Agreements Act.
lahoma
and
ever,
the
journment date.
frequently
memories of the "inventory read¬
of
Mr. Gunderson personally, how¬
ad¬
has been known to tack
also
Senate
they important problem for small busi¬
can
do is to delay the bill until,, ness was tax relief.
This he has
even
if passed by the Senate, it also said before in open hearings,
cannot get through conference in but he went further and said that
member,
Republicans, all of
whom may be expected to work
covertly also, if not openly, against
of
still
are
One thing
tricks.
party's Senate Leader, is another
were
months
questions.
the
Colorado, for he fears the beet
derson appeared before the Senate
refining industry of his state
Banking Committee in th'b hearing
How smart the Administration's will fall apart without the express
on
the
Administration's
"Small
legalizing of freight absorption.
lieutenants were in the House, is
Business"
bill to provide small
Mr. Truman vetoed the basing
business loan insurance, a whole
something which will bear a little point bill.
•
amend¬
the House omnibus
phasized that the overwhelmingly
the
.
was
,
now
Senators
•
brief, and it
•
dodged most of the issues and
,
the experienced evaded answering significant
probably his only likely pared statement
expressing his personal views, em¬
So with the
-
Taber-Jensen
econ¬
saying
are
and that if economy is
but this is
stubborn,
tions—incidentally a concept re¬
here neither as a wise¬
crack
or
something bright and
cynical, but a matter of fact,
work-a-day political reality.
;
approaching House
Administration
boys
were
plenty smug. Harry fixed
the- thing up, by gum, and' he
didn't have to wait for the thing
to go over to the Senate for the
Senate Democratic boys to patch
it up if there were to be a tax
bill or the Big Chief wouldn't
have to veto it.
'
y ;
to
propriations bill
and that it also knows a few little
garded
vote,
ments
political teeth by Mr. Truman in
the
attempted
appointment
of
which could be used to divide and
the business front against
superultramatic spending.
Posi¬
of
Even
proposal, C. J.!"
ad¬
means
ready to object to your
President
corporations
conquer
Besides
the
"soft
subordi¬
to
prevention.
the
that
think Van Mewmore is getting
"I
making possible a tax cut, Mr.
Byrd was recently kicked in the
Martin
set up a
clear line of demarcation between
'Tittle"
Finance
of
favor
opposed
omy-minded Senators
Senator Harry F, Byrd of Vir- ; vote.
ginia is the third Democrat on the
From
vocating
areas.
nating debt management policy to
all
victory.
and
inflation
although as Chairman of Foreign
corporations earning more Relations he must fight the battles
than $167,000 per year.
for ECA and
the
Military Aid
This looked hire a wonderful Plan.
v*
on
in
3-to-0
now
credit"
issues,
and the tidelands oil
bill
backward
The Council of Economic Advisers
gas
"Ways and Means ' Covreuiuee
in
investment
That
rp:
Austria, "for¬
aid" will accrue to Europe
indirectly from selling its own
eign
Senate Finance
to thrust down the
from.
Adminis¬
hopes to get foreign
going at the rate of
$1 to $2 billion by 1953, to take
up
the slack after the Marshalt
Plan expires. Then except for aid
that Mr. Truman intervened to try
political victory by pull¬
The
still
investment
corporation
any
Committee.
House
tration
increases, have now vanished.
The
Mr. Truman seemed to have won
a
minus
this,
soon,
maybe
"stripped down" excise tax cut of
about $750 million and trying to
sell
will be reported out
by this week-end,
ably
y
.
Any thoughts they entertained
in
the, past
of working up a
a
di¬
bill, is making no haste to finish
hearings and report the bill. The
a
excise tax cut.
a
The Senate
political asset to boost
business as the price of
that it is
as
RFC/expires
WASHINGTON, a line at a time:
Banking Committee is
stalling on the "Small Busing,"
busi¬
on
general principle and they
not share Mr.
do
"little"
between
wedge
taxes
increase
to
ness on
the same time will seek to drive a
tax
a
Nonetheless, the Senators do not
want
at
of
-v..
»•;.
•
-•
corporation
will hike the Federal
income
■
say,
to drop him from the Board by
expressing what the Committee
members
obviously took as his
honest opinion.
i
DIRECTOR S
f.:;
••
precipitate
decline in business volume.
business taxes might
long,way between now
Cinal enactment of a tax bill which
a
quite
June 30.
He clearly tempts the White House
.
v :•
still
Gunderson
not
Gunderson's term
Mr.
rector
WoofmoreNot'l Batik
BOARD OF
is
and
did
loans to business.
H
■
WASHINGTON, D.- C.—It
Mr,
and,
but
indicated
there- would be
of the pending
probably very little need for RFC
Mitnd-the-Sceno Interprttatiftn*
,
any
a
five-year tax amorti¬
period
were
enacted
Teletype—NY 1-971
Firm Trading Markets
Tel.
HUbbard
Mass.
2-1990
for
Commonwlth Natural Gas
Empire State Oil
Jack & Heintz
Investment Securities
FOREIGN SECURITIES
All Issues
HWercer Hicks Corporation
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72 Wall St.
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