Full text of Commercial and Financial Chronicle : June 4, 1953, Vol. 177, No. 5226

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UNIVERSITY
OF MICHIGAN

ESTABLISHED 1839

5 1953
HSINBt MMNISTIMIM
inun

Reg. U. S. Pat. Offioe

New York

Number 5226

Volume 177

We See It

longer be any reasonable doubt
barring a rather drastic change in the current
general policies of the Federal Reserve authori¬
ties, and a sharp and prolonged turn in the gen¬
eral business situation, the Treasury is facing

By HON. GEORGE M. HUMPHREY*
^

of picketing: (1) those who feel that it infringes on

On the

business expansion.

;

view, argue that picketing is an essential component
of the strike weapon to secure human rights. To help

clarify thinking on the subject, the Editor of the
"Chronicle" invited brief comments on the question.

;

tional

Some of the communications that have been

(

reception is significant. Add the fact that a 2%%
one-year certificate was not too enthusiastically
received in the financial district, and it is clear,

the extension of the Excess
31. I am here
to urge this extension in spite of the fact that I dislike
the Excess Profits Tax and think it; is a bad tax.

enough that times have changed. Of course, vari¬
ous other indications of a basically altered state

problem is that of na¬
security—which means mili¬
On

tuioi

for

need

curtail the

reduce outlays, and thus
funds either through

taxation

to say:

rowing. It is equally evident, however, that quick
large relief from this direction will not in

and

the nature of the case be

present

in view of
admittedly large defense needs and in conse¬
quence

of immense previous commitments
!

Continued

on page

financial

will1

facts

information, it

will be $1.2

Means

THE "CHRONICLE"

unnecessary.

.<m.

the

make the use of it
The abolition of the

mark of the

strike! is the
The

state.

strike

itself

is, by and large, an example of the
use
of the folded arm rather than
clenched

fist, although I shall
credulity
by
arguing
strikes are completely
pacifist affairs. I shall argue that
historically
they have
been an
the

not

George

by Sec'y Humphrey before the House
Committee, Washington, D. C., June 1, 1953.

page

the

and

one

hand to weak

the

other

Norman

Thomas

riotous mob violence.

Picketing is in large part the way best open to tha
to present their cause.
It is an expression of

Ways

submission

billion less than had originally been estimon

great

alternative

receipts

revenue

strain

that

Humphrey

On the basis of our

statement

and

workers

Continued

page

Institute

of June 11 will feature proceedings of the Edison Electric

Convention at Atlantic City, N. J., and also contain candid pictures
at

existence

The

tends

totalitarian

that

appears

*>•:

workers.

right

Continued

21
W*.

the subject of picketing in connection with
This I am prepared

The right to strike is essential to

the

*1%
%*,
kmm

show

prospective deficit of $9.9 billion.

forthcoming. Try as it

to avoid it, this Administration,

may

;

busy day, I am not prepared to write ex¬

very

conflicts.

labor

just what we are up against.
Last January the budget filed for
the fiscal year 1954 showed total es¬
timated receipts of $68.7 billion and
expenditures of $78.6 billion, with a

bor¬

few

tensively

Military security and economic se¬
curity are the chief responsibilities
of the nation. They must take prece¬
dence over everything else.
7
A

New York 10, N. Y.

equation.

Others

NORMAN THOMAS

basic

dollar must be kept sound to provide
a solid base for a healthy economy,

Significant changes in the supply situation have
also occurred. It appears clear enough that the
Eisenhower Administration is making strenuous

given in the "Chronicle" of May 28, on page 3,
and we are able to accommodate in today's issue the

following additional expressions of opinion.
will be given in subsequent issues.

tary security and economic security.
The country must be kept safe from
aggression from abroad. And further
inflation must be stopped andthe

quite abun-;

received

were

The immediate problem is

The

subject

property rights and, civil liberties and thus should
be curbed, and (2) those who, holding the opposite

■

;;;

page of the "Chronicle" of May 21,
caption, "What Do You Think?" attention

cover

called to two schools of thought on the

was

Profits Tax for six months through Dec.

So much for the demand side of this

not the

under the

The fact that a 314% long-term issue of the
Treasury—an issue of very moderate proportions
to state the case mildly — met with a hesitant

are

Picketing?

subject of whether

Taft-Hartley Act should be amended to curb
picketing presented in today's issue.

Secretary of the Treasury

provide a solid base for the
economy. Cites adverse budget situation and says gov¬
ernment spending cannot be cut back fast enough to
justify reduction in taxes. Supports Eisenhower's state¬
ment EPT penalizes thrift and efficiency and hampers

return of an old, old era, but it has now
been so long since these older conditions obtained
that to many observers a return of them would
<or will) appear definitely a new era.

market

the

tion of further inflation to

say a

of affairs in the money

letters

Though calling the Excess Profits Tax "a bad tax," Sec.
Humphrey favors its extension for six months because
revenue is needed for national security and the preven¬

might be termed a new era in the manage¬
of its debt. Perhaps it would be better to

ment

What About

But We Need the Revenue!

that

what

Copy

Excess Profits Tax Is Bad-

As
can

What Do You Think?

EDITORIAL

There

Price 40 Cents

7, N. Y., Thursday, June 4, 1953

taken

the Bond Club of New York outing.

Stale
in

WESTERN

U. S. Goyernmeiit,
State and

Municipal

Securities
telephone;

STATE

Pacific Coast &

and

MUNICIPAL

BONDS

Direct Private Wires

HAnover 2-3700

Coast to Coast

Wires

Chemical
BANK & TRUST

COMPANY
bond department

Ream Witter & Co.
14 Wall

Principal Commodity

THE NATIONAL CITY BANK

•

Bond

Net

Canada, Ltd.
on

T. L. WATSON & CO.
Members New

1832

Exchange,

Request

Active

Dealers,

;

and

Brokers

Orders

Spokane

NATIONAL BANK
OP THE CITY

BONDS & STOCKS

Executed

Public Service Co.
of New

All

Canadian Exchanges at Regular Rates

H. G.

Bruns

Hardy & Co.
Members New
Members

York Stock Exchange

American

Broad St.

Tel. DIgby 4-7800

Stock Exchange

New York 4
Tele. NY 1-733

DIRECT

DEPARTMENT

WIRES TO MONTREAL AND TORONTO

Goodbody
50 Broadway,

New York 4, N. Y.

Telephone WHitehall

4-C500

Teletype NY 1-1843

Bridgeport

Perth Amboy

ESTABLISHED

Co.

Analysis upon request

NEW YORK

Pomdqox Securities
>

6RP0RA3TO7T

1891

MEMBERS NEW YORK STOCK EXCHANGE
115 BROADWAY

1 NORTH

40 Exchange

Place, New York b, N.Y,

IRA HAUPT&CO.

Teletype NY 1-702-3

WHitehall 4-8161

York Stock Exchange
Principal Exchanges

Members New
mnd

other

111 Broadway,
WOrth 4-6000

LA SALLE ST.

CHICAGO

Hampshire

COMMON

Over-tke-Counter Trading Dept.
CANADIAN

OF NEW YORK

Cities

CANADIAN

Products, Ltd.

Commission

cDe.nver

THE CHASE

Maintained

Markets

Banks

—*

Angeles

and 10 other Western

B. C. Forest

York Stock Exchange

American Stock

Commodity Exchange, Inc.

Circular

Salt Lake City

Dept. Teletype: NY 1-708

Honolulu &

established

1915

Principal Exchanges
BROADWAY • NEW YORK CITY

Los
Los Angeles • Chicago

Boston

OF NEW YORK

and Security Exchanges

San Francisco •

Ford Motor Company

ESTABLISHED

Members of All
-

Bend Department

j. a. h0gle & co.

Street, New York, N. Y.

Members of

Bonds

SECURITIES

Hawaiian Securities
Direct Private

Municipal

OIL & MINING

Boston

N. Y. 6

Teletype NY 1-2708

Telephone I

Enterprise 1620

The Commercial and Financial Chronicle

(2406)

The

WE POSITION and

TRADE IN

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

Phillips Petroleum
and Rights

3.70/83

Conv.

Security I Like Best
a

different

advisory field from all sections of the country

participate and give their

reasons

for favoring

(The articles contained in this, forum

Public Utility

Central

they

are

be regarded,

offer

as an

3H% Bonds of Dec. 1, 2000—
George A. Bailey* Partner, G. A.
Bailey & Co., Philadelphia, Pa.
(Page 2)

Alabama &

Morris & Essex RR. 1st Ref. Mtge.

are not intended to he, nor
sell the securities discussed.)

Westpan Hydrocarbon Company—
Bruce
Benjamin,
Research
vantage, Our position is that if, as
Analyst, Hettleman & Co., New
and when that, happens, with re¬
York City. (Page 2)
spect
to the Lackawanna
and
Nickel Plate, merger discussions
will be in order. They would not
be in order under present condi¬ 52.8% of which is owned by Sin¬
clair Oil Corp.
tions."
holders

GEORGE A. BAILEY

PartLipants and
Their Selection*

particular security.,

Air Products

Arkansas Missouri Power

TMs Week's
Forum

of experts

group

and

their

...Thursday, June 4,1953

Louisiana Securities
Bought—Sold—Quoted

ad¬

mutual

—

Colorado Interstate Gas

Partner, George A. Bailey & Co.,
Philadelphia, Pa.

Electrol, Inc.

Members Philadelphia-Baltimore
Stock Exchange

Metal & Thermit

Morris Plan, Pfd.

Morris & Essex RR. 1st

Smelters

Development

Southern Production

Southern Union Gas
—

★

Refunding

Mortgage 3</2% Bonds,
Due Dec. 1, 2000.

Strong Cobb

this

point in the economic
there are few securities

cycle

available that possess the possibil¬

ity of gradually advancing in price,
whether

—

eral

gen¬

business

increases

New York Hanseatic

decreases

to
elect two directors of Nickel Plate
is before the Interstate Commerce *

Stock

the

charges,
in

stockholders.

down.

120 Broadway, New York 5
Teletype NY 1-583

BArclay 7-5660

market

first:

wanna

if merger

well

average

turn.

Rights & Scrip

volving
other

Sec¬

Nickel

re¬

George A. Bailey

have

Fourth, it must

issues

offer possibilities
price.
These attributes may be found

Fifth,

must

for enhancement in

McDonnell &fo.
Members
New

York Stock Exchange
Stock

American

120 BROADWAY,

Exchange

NEW YORK 5

Tel. REctor 2-7815

the

American Furniture
Bassett Furniture Industries

Cajnp Manufacturing
Commonwealth Natural Gas

RR. first

STfiADER, TAYLOR & CO., Inc.
Lynchburg, Va.
LD 39

TWX LY 77

Essex and

assumed

payment of both principal and in¬
terest of the Morris & Essex 3V2S.

Separate financial statements are
The D. L. & W. has

steadily strengthening its
capital structure in that its fixed
charges have been reduced from
$8,320,801 in 1932 to about $4,201,328 at the end of 1952, or ap¬
proximately 50%. Based on the
present annual fixed charges of
about

$4,200,000, the net income

available
ments
on

wanted
SOUTHERN

would

times,
of

large control blocks

HARRYand MYRON KUNIN

indicating

403 W. 8th St., Los Angeles»TU 5630

1856

Hentz & Co,

New

York

Chicago
New

Cotton

Exchange

Exchange,
Board

Orleans
And

Exchange

Trader

Cotton Exchange

other

N. Y. Cotton

Inc.

Exchanges

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

PITTSBURGH

GENEVA. SWITZERLAND

the

each

received

good

margin

diesel
compared
with
by

two

other.
Nickel

the-two

would

create

direct

East-West system extending from

of track operated

at the close of

the year 1952 by the Nickel Plate

mortgage
bond
is
in
a
stronger position today than any

the

enter¬

received

in the company's history.
property is indispensable to
the operations of the Lackawanna
system. The company is now in
the
best
financial
position
in
many years and the prospects for

the sale and has ap¬

constituents

bon

extracted

from

natural gas owned by the Colorado

funded

debt

improvement

approximately

Members

New

Common

Pfd.

Conv.

Marion Power Shovel
Preferred

Mineral

Foote

;

Gersten & Frenkel
Members N.

Security Dealers Astfn

150 Broadway

New York 7
v Tel. NY 1-1932

Tel. DIgby 9-1550

LAMBORN & CO., Inc.
99

WALL

STREET

NEW YORK

and

oil

5, N. Y.

which

wells

drilled

since

have

Westpan

its

present program late in 1952, seven
become producers.
If the
fields in which these wells are
have

located

the
it is

can

developed

SUGAR

been

began

Raw

—

from

of from $2.00

this

source

—

Liquid

Exports—Imports—Fut ures

along

potential currently indicated
possible to visualize operatint

revenues

Refined

DIgby 4-2727

alone

to $4.00 per share,

per annum.

During 1952, the first full year
hydrocarbon sales., gross

of liquid

income of $1,492,503 was reduced
to $546,470 or 75 cents a share

after

tentative

Commonwealth

tax

charge of
the maximum

Oil

Company

Common Stock

Exchange

Westpan Hydrocarbon Company

risk, combined with virtually un¬
limited appreciation possibilities.
calls,

at-

our

Westpan

Hy¬

drocarbon

Co.

believe

the

common

stock

com¬

this

pany fulfills
these requirements

and

"The Secu¬

rity

Bruce

Benjamin

nity

effect

true

earning

Bought—Sold—Quoted

Westpan
opportu¬
is pre¬

sented to share

production

expanding

Assuming that the present

headed by
E. C. Wagner, President, in con¬
junction with the Sinclair and the
Albert R. Jones organizations is
able to
a

sustain the recent

dynamic increase

may

record,

be visu¬

alized.
As

new

Prospectus
■

)

request
:

team

management

fields

tested

are

and

holdings proved, most oil com¬
panies borrow funds to hasten the
exploitation of proven acreage.
Westpan is in a particqlarly fa¬

Gordon Graves & Co.
30 Broad

Street, New York 4

Telephone

Teletype

WHitehall 3-2840

NY 1-809

410 Pan American

Miami 32,

^ank Bldg.

Florida

vorable position in this respect as
it has no outstanding debt and has

exceptional borrowing power af¬
by the royalty-type income.
For example the company's dis¬
forded

covery

Best."

the

and relatively large recurrent rev¬
enues.

The sophisticated investor's fun¬
damental demand for minimum

of the company.
believe that this company's

growth will stem from the double

York Stock

company's future is

330,-

Research Analyst,
Hettleman & Co.,

possible merger with New York;

Kansas,
is' held,
lished a
could

well in Sheridan County,
where extensive acreage
appears
new

field.

become

one

have

estab¬

I feel that this
of

the

major

14.88% of the vot¬ from its inception in the develop¬ finds of the area and Westpan may
ment of a promising oil and gas well consider resorting to bank
loans for the prompt development
& W. President, said:
company.
This company seems
of this acreage.
"We do not believe merger be¬ uhique, possessing both experi¬
If I am completely wrong in as¬
tween two companies pan be suc¬ enced and capable management
suming that substantial oil and
cessful unless the principal own¬ and a
continuing flow of free cash
gas properties can be developed
ers and management of each rec¬
unencumbered by large overhead.
by Westpan, the shareholder still
ognize that such a move will be
The capitalization consists solely possesses excellent downside proin the self-interest of the
or

Over-the-Counter

Quotation Services
for 40 Years

Mr. Shoemaker, D. L.

respec¬

tive

Stromberg Carlson Co.

gas

indicative

shares,

offices

power

recommend

owns

for

year and the tax bill consequently
points should be modest. Obviously, the
first year's result does not seem

BRUCE BENJAMIN

face amount of its debt and leased-

stock the Lackawanna

under par.

line stocks since 1940.

ing stock.

branch

our

mortgage issue continues to

sell

re¬

Chicago & St. Louis Railroad
(Nickel Plate), of whose common

in¬

are

first

oper¬

intensive

$830,000 deducted as
possible liability pending a final
creased
through- the
"eventual tax ruling. Future drilling opera¬
merger"
of
the
Nickel
Plate. tions are expected to entail con¬
Nevertheless, this well-secured siderable expense in a typical
still further

annually, thereby steadily
increasing the equity back of
these
bonds.
During
1952 the
D. L. & W. purchased bonds
amounting to $2,398,050 par value.
It has bought in over $24,190,430

000

one

until June 21,1954. Albert R. Jones
of Kansas City, a well-known oil

time

The

duced

NY 1-1557

Mobile, Ala.
Direct wires

properties. Drilling operations
Hoboken, N. J., opposite "New on acreage already acquired have
York City, to Chicago. The miles
proved outstandingly successful.

tention

Through the sinking fund
the

extension

has

Interstate Gas Co. Its regular in¬
Shoemaker stated, dicated annual
gross income from
make
an
extremely
important such sales is
approximately $1,contribution to Lackawanna's in¬
400,000, and is expected to con¬
come and help materially to meet
tinue for many years. With these
current fixed charges. The merger<•
funds the company is engaged in

Another factor in the develop¬
Exchange

Stock

Commodity

handled

This

ment of this
American

Dividends

66.13% in 1949.

Members
Stock

that

and

complement

In 1952 fixed
about 2.88

During the year 1952 an
average of 98.68% of gross tonwas

future

earned

gram.

ations,

York

years.

adding to the road's
efficiency is the dieselization pro¬

miles

New

earned

safety.

power.

been

Further

prefer special situations

Established

have

require¬

of about 1.65 times

average

past 20
charges were

CALIFORNIA

these

meet

in the

SECURITIES

and

St., New York 4, N. Y.

HAnover 2-0700

in-

wharves, water was 3,971.78, and by the Lacka¬
of the railroad. In wanna 2,380.39, a total of 6,352.17.
1943 the ICC placed a valuation
This bond is available in regis¬
of $93,235,469 before depreciation,
tered as well as coupon form. The
while there are but* $35,000,000
registered bonds sell over-/heof these bonds outstanding.
»counter.
Free
of
the
personal
Early in 1945 the Delaware, •nroperty tax in
Pennsylvania, this
Lackawanna & Western merged
first

the Morris &

the

Sinclair

should

etc.,

been

Life Insurance Co. of Va.

the

entire properties,

not available.

Dan River Mills

Essex

refunding mortgage 3%% bonds,
due Dec. 1, 2000.
This issue is
well secured by a first lien on the

rights,

Trading Interest In

Morris

25 Broad

Plate stock, Mr.

consistently
increasing equity.
a

yield more than other comparable
in the same industry; and

Since 1917,

inimicable

Lackawanna

Plate

roads

prise,

Westpan (short for West Pan¬
be
handle Field in Texas) is entitled
emphasized also the to an assured contractual income
traffic
relationship
with from the sale of
liquid hydrocar¬

started.

Third,

must

road

Exchange

New Orleans,La. - Birmingham, Ala.

protection to Lacka¬
proceedings in¬
operator, is the other major stock¬
Nickel Plate and some holder.
a

than

better

Specialists

The investment, he

added,

it must
paying

Stock

York

New

Members American Stock Exchange

long-range

must

secured.

ond,

the

Such

issue

Sinclair

Members

received 384,861

both, but it would not
plied for another in the hope of
interest of
retaining this interest at least

stock

Exchange

of mission Oil of Kansas.

dent

1920

Associate Member
American

The company was organized late
in 1951 as part of the liquidation

shares under this
easy
liquidation which must eventually
course for Lackawanna, Mr. Shoe¬
be disposed of in accordance with
maker stated, to sell its Nickel
an SEC ruling. Apparently confi¬
nace
holdings and distribute the
It would be

Commission.

goes

Established

application

proceeds either as a special divi¬
dend or to reduce debt or fixed

whether

Corporation

Lackawanna's

Steiner, Rouse & Co.

companies and their

stock¬ of 727,757 shares of common stock,

Continuedonpage 17

National Quotation Burean
Incorporated
Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
SAN FRANCISCO

Number 5226

Volume 177

...

The Commercial and Financial Chronicle

(2407)

Oppression!
SEC arraigned for its waste
relentless

and

of public

volving

SEC by Heller

Committee quoted.

Federal Securities Acts

The

court's decision in¬

—Hon.
•:*

Securities

—John

and

Ex¬

The..third
made in

Kaiser-Frazer

stock

February of 1948.

offering

made

known

that

interest

Helm

was

The

—Ernest, H. Watson

when Otis & Company
would not proceed with

Is America Going Bankrupt?—J.

Haile Mines
Getchell Mines

Chief Factors in Business Outlook—Neil H.* Jacoby..—-_

Lear

C. Turner

—Robert

Can We Solve the "Trade—Not Aid" Problem

-Reeves Soundcraft

—Walter Lichtenstein

Corporation

Functioning of Council of Economic Advisers

and

Structure

Incorporated

Taca

Utilities—Theodore Baumeister__ 14

Nuclear Energy for Electric

Cinerama Inc.

February 18, 1948, ordered

4-6551

Philip Wernette

Support Inflation Curbs!—Stanley A. Neilson

involved, and further that
Exchange Commission had no

month,

NEW YORK

Needed: A Reaffirmation of Functions of Financial Institutions

Commission, however, had other ideas, and

same

WALL STREET,

Telephone: WHitehall

business to interfere.

that

request.

—_

way

the Securities and

Descriptive Memo

•

Major Types of Recession—Arthur M. Weimer-,...-

by the courts. We felt that the public

was

;

underwriting, we took the view that this was
private dispute, which would ultimately be de¬

termined

May

Railway Preferences—Ira U. Cobleigh

the
a

—Harold

Bought—Sold—Quoted

of World's "Progressive" Businessmen

A Commercial Banker Looks at His Trust Department

From the very outset,
■

NORANDA OIL

CORPORATION

Grier

—A. Wilfred

courts.'

our

Cover

Government Bond Market and Problems of Treasury Financing

poration financing dispute with Otis & Co. has

finally determined by

George M. Humphrey

Current Thinking

change Commission can be a relentless persecutor
is established by its refusal to drop the Otis & Co.
case, despite the fact that the Kaiser-Frazer Cor¬
been

AND COMPANY

Criticism of

Need for repeal of

the

Page

Excess Profits Tax Is Bad—But We Need the Revenue!

increasingly apparent.

which

extent

LlCHTEIMIH

B. S.

Articles and News

of Otis & Co.

private controversy condemned.

in the

moneys

unwarranted persecution

The Commission's refusal to accept

INDEX

Unemployment Insurance—Roger W. Babson__.

private investigation.

Within two

days, its auxiliary policeman, the
National Association of Securities Dealers, re¬

What About Picketing? (More letters to
whether Taft-Hartley Act should be.

"Editor" on subject of
amended)----—-.Cover

quested information

the Kaiser-Frazer

offering.
whole

jumble of proceedings,

^v'V.:

,v_

:-' Y,;

some

of these,

During

time,-i
had

BO 9-5133

But Private Funds Must Be Attracted

Vv;

National

As We
Bank

the

common

this

(Editorial)

Insurance

.attorney

Funds

Our

'—L——

—

Our

and con¬

of privilege

to endeavor

Reporter

page

The Market

The Security I

have

specialized in

The

PREFERRED STOCKS

——;

Boston

•

Manchester, N. H.

Private Wire

Nashville

•

LOS

•

Chicago

•
•

Glens Falls

•

Schenectady

•

Every

Worcester

CROWELL, WEEDON & CO.

ANGELES, CALIFORNIA

Reentered

United States, U. S.
Possessions,
Territories and Members of
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The Commercial and Financial Chronicle...

(2408)

Law of Supply and Demand No

Government Bond Market and

Longer Constitutional
You

all

Problems of

Treasury Financing

this

March,

tinued

con¬

wide¬

source

interest

spread

has

Market

Bond

ernment

past, the Gov¬

years

discussion

and

tion's bankers.

still

some

Starting

ation

approximately
in 1948, the

hope

controversial

topic

of Fed¬

eral Reserve

support of the
at

market

fixed
level

and

pro

Grier

in¬

apparently

will

con

influence

realize

avoid

the

re¬

any

What Is Inflation?

have

ment

Let

mentioned

support

market

that

for

Federal

the

Govern¬

inflation.

produced

pause

and

moment

large part of the past two

decades seem to convey the idea
that the law of supply and demand

unconstitutional.

was

human nature to relish

bond

market?"

Gentlemen, there is nothing the

tem

controls,
of

born, possibly,
expediency

"too many dollars

market

number

goods." If

ever

was,

than

for

others

airing

their

views, I joined the procession, and

money

goods

hope you will forgive my quot¬
ing from a talk I made in Janu¬
1948

ary,

before

the

Wisconsin

Bankers

Association, a quotation
which, in the light of subsequent
developments, I take pardonable

pride:

"Portfolio

possibly

now,

management
so than any

supply and the supply of
and

normal

services

ever-

relationship, the probabili¬

are

reserves

would have

infla¬

amount,

upon

which base loans and investments

banking

Such

fallacious

any

so-called

still

dependence

the

accord

former

market

the

with

was

the

becoming

inflation."
nessed

System,
able

the

"engine

have

and

under

the

*An

perfect

address

Annual

Mr.

Grier

with

Association,

Rock,

possibly

long time past, as
the price level is predicated on
actuality, and not on an unsound
idea

maintaining

(with his

aptitude for succinct
he
said, "When an

employment, as
creating more money

not

create

can

things

only bid

stated, and again I quote: "There
must be restraints

excessive credit in

creation of

boom, and

Ark.,

inflationary

dangers

longer threaten stability."

interest

rates

help

must

so,

necessarily

best

interests

all

the
indi¬

vidually.

Feeling as I do,
complete accord with

mone¬

Treasury

Now

let's

Maintained in all

PHILADELPHIA

ever-present

liabil¬
con¬

threat

the soundness of the

was

purchasers

this

issue

extremely large, and I feel it
the

was

hands

volume

such

the

bonds

the

speculators, rather

offering

refunding

tions,

assurances

from

institutional

that

would not have been made.
I have

appreciation of the

some

Treasury

task

and

confronting

have

the

utmost

and

necessary

borrow.

minimize such attri¬

tion, it is essential that considera¬
tion be given to the type of hold¬
of the maturing issues and

ers

ones

example, corporations,
public
funds,
as
well
as
commercial
banks, are large holders of short
.

term

Governments, and in the vast
majority of instances they would
not

short

interested
terms.

extension

necessarily
slow

make-up

the
in

years

logically
changed

other

comparatively
Remember, the

debt

which

expected

bona

over night.
The refund¬
ing last February was one of the
outstanding
accomplishments
of
the Treasury in respect to attri¬
tion, as such attrition was negli¬

gible, and what is of

swer

done

was

without

any

The

an¬

obviously that the rate

was

realistic

was

signifi¬

Federal Reserve support.

were

has

developing cannot

veloped to date. Nevertheless, had
ing the institutional buyers, who

than

the
maturity must

debt

procedure.

been

Consequently,

cance,

basis been reached for grant¬

new

patterned to their needs. For

confidence in their policies as de¬
some

in¬

creasing
the
amount
of
new
money which the Treasury must

surance

tremendous

maturing obliga¬
matter of prime import¬

ance

payment

par

The number of spec¬

and

indicated

the

fide

look

means

necessary new money

financing the balance of this
the

dis¬

accom¬

residue

above

the

raised from the non-bank

year,

earnestly

can

the

billion.

These

figures do not

re¬

funds,

etc.

would

probably

which

all

retired

cause

probability

the
the

The

be
be¬

tax

exemption

feature.

will

optional date

successfully

job

accomplishing this refunding with
minimum degree of attrition is
Herculean task in itself, but,

addition,
I

new

know

money

must be

fess

hoped

that

be held to a-bare

total

added

the

attrition

new

money

Where

will
this
money
come
In the fall of the year the

from?
usual

offering

Treasury

Tax

able

PHILADELPHIA 9
LANCASTER

lion

might

expect

Anticipa¬
will be of¬

Bills

fered, and it would

Incorporated

—

long term bonds
be issued.
The

seem

reason¬

that about $5

bil¬
qbtained in that
manner, largely from corporations.
Liberalizing the terms on the Tax
Savings Notes, as was done re¬

alarm

made with funds that

might other¬

the

one

To those who

pro¬

a
3Y4% long term
2%% one-year rate,
compared to a 2^4% one last

and

February, it should be said that
savings on interest on the national
by maintaining an artificial¬

debt

ly low rate are negligible in com¬
parison to the benefits gained by
safeguarding the dollar.
"
Pricing of New Issues
Another

factor

which

may

trouble the Treasury to some de¬
gree in their realistic pricing of
issues

new

the

discount

which

outstanding issues are cur¬
rently selling. Some people are in¬

clined to be critical of the higher

placed on new issues, but
funds, how¬ they may not be giving considera¬
tion to the yield on
ever,
must
undoubtedly
come
outstanding
from
of
corporations, public funds issues
comparable
maturity
and
commercial
banks, and to after giving effect to the capital
these, only short term obligations gains tax. For example, the 2s of
would have any appeal, so I would June 15,
1954/52, with practically
expect the major portion of cash a year to go, yield 1.24% after
offerings to consist of bills, and corporate taxes and after giving

certificates,

with

possibility of

notes.

funded

into
as

longer maturities, and so far
possible, to place a larger per¬

centage
the

tude

actual
and

with

banking
the

investors

system.
task

outside

The magni¬
indicated

coupons

between
now
1957—less than five

31,

full

calendar years—of over, $95
billion, including bills; and in ad¬
dition, there are outstanding some
$58
billion
savings bonds,
and

$5Mj

notes, and

billion

over

somewhat,of

aversion

capital
with

gains

this

tax.

necessitates

Continued

page

GRAPHIC FORECASTS
Stocks
In

Grain

•

Cotton

•

November, 1952,

FORE*

our

CASTS pinpointed the extreme
TOP and
BOTTOM
dates for
1953.

Results

amaze

maturities

Dec.

about

effect

compete

tax
savings
$13 billion Treas¬
ury Bonds Investment Series, all
of which are practically
payable
on
demand., I was glad to see the
cently, will undoubtedly attract recent
offering
of
314s .made
buyers, but it remains to be seen available to the holders of ma¬
whether such purchases will be turing F and G
bonds, as I have

successful

February.

bulk of the necessary

some

raised to $11 or $12 billion.

STROUD & COMPANY

bond

because of the infla¬
tionary effect of such type of bor¬

flect any optional dates excepting
the $681 million 2Ws of 1956-54,

tion

hoped that this refunding

will

sources

—

obligations, as well as
redemption of demand
obligations, which could well raise

Philadelphia Banks

confirmation of this policy, and it
is to be

amount

mentioned must, in all probability,
come from commercial
banks, and

minimum,

•

some

possible

•

to
the

rowing.
confronting the Treas¬
believe me, they are Types of Securities to Be Offered
real problems. During the current
What type of securities is likely
calendar year, exclusive of Treas¬
to be offered? If, as I
mentioned,
ury Bills, there are definite ma¬ there should be evidence of
buy¬
turities of over $27 billion. Dur¬
ing interest on the part of institu¬
ing the calendar year of 1954, such tional investors
insurance com¬
maturities aggregate
about $28 panies,
savings
banks,
pension

the

PITTSBURGH

Reverting
cussion

and,

ury,

must

BANK STOCKS
Send for comparison
of 11 largest

with

such amount

maturing

demand

opinion, they

dependable
What
of
the refunding?
The
actual figures covering the Treas¬
Treasury is fully conscious of the
ury's needs for the remainder of
fact that the make-up of our debt
the calendar
year, but based on
maturities
is
unwieldy, and, as
such information as I have been
opportunity permits, will certain¬
able to obtain, it would appear
ly put into effect their avowed
that $9 to $10 billion might be
policy of getting some of the short
about right. To this, however,
term and demand issues

Trading Markets

•

the Treasury is attrition,
is, the amount of the matur¬
ing issue which is not exchanged
I say that I for the new
one, thereby making
unfortunate cash
ex¬

problems

raised.

ALLENTOWN

distribution.

Problems Confronting the

•

from

of 3Y4S
before the
date of issue, a situation which I
am disposed to attribute to
type of

combat

NEW YORK

realized

quoted below

was

whole, and, if plishing the

of the economy as a

Active

connection, may
it
extremely
the recent offering

that

specific allotment

inflation—is in 'the best interests

speech
Federal

is running at peak levels

now,

when

1953.

Little

the

policy of liberal monetary easing

the

Convention of the Arkansas

Bankers

May 26,

the prices
of available supplies." He further

Re¬

before

recent

Chairman

buy—it

present

accord

will

Board and Treasury, there is

seemingly

the

of production and

the

leadership in both the

serve

and

best make my point Clear

economy

wit¬

can

comments)

since

emancipation

sound today as

customary

that
System was

procedure

Reserve Board wherein

Federal

bond

tary policies to date.

controversy,

Federal Reserve

expanded about five-fold.

by quoting from

Board, made during the

rapidly

63rd

is just

obviously in¬
creases
the
money
supply, and
without a corresponding increase
in
goods and services, the in¬
I

can

eco¬

statement of

member

Reserve

height

opinion.

same

nomically unsound, and I
full

fact.

Government

evitable result is clear.

upon

judgment, the continued

support

not

'pegged' market." I

the

and

the

investors, a full Treasury's willingness to pay the
correspondingly going rate for money the same as
tion. I need not tell you gentle¬ price level seemingly regardless fewer bonds
to
speculators, the any other borrower, and not rely
men that unlimited purchases
by of economic consequences. I be¬ market action of the new issue, on inflationary procedures to hold
the
Federal Reserve
System of lieve the policy being pursued— and the rest of the market as well, down the rate. The recent offer¬
Government securities create bank of using the traditional weapon might have been more gratifying. ing of a one-year 2%% is further
ties

time in the past few years, should
be based upon sound conservative

practice,

mar¬

amount
as

stitute

the

substantial

long term investors, I should
pect to see such demand met.

political

opinion,

chasing too few
could maintain the

could

amount

survey

investors, such as in¬
companies, savings banks
ket. The facts are that too many
and pension
funds, of sufficient
bankers permitted themselves to
buying interest to account for a
be lulled into a feeling of selflarge percentage of the issue, or
complacency by relying on a sys¬ the offering
in
all
probability

rather than economic

reveal

you

definition

heard

investment,

will agree than bona fide investors, that re¬
that a depreciated dollar is too sulted in the issue's breaking par
high a price to pay to prevent it. so quickly and disturbing the rest
of the long term market as well.
Frequently,
bankers
ask
me
It would
seem
logical that the
"What
is the
matter
with
the
Treasury had obtained in advance

loans, but I believe

ask, "What is inflation?" The best
ever

situation

losses, and ulative

banker enjoys seeing his gov¬
ernment account under water any
more than he enjoys
charging off

policy.
Not to be outdone by the untold
of

not

respecting

have

should

for

large
ities,

dollar, and I
and it might well be that pension
certainly hope the Treasury will
funds and savings banks could be continue its efforts
to get these
included
in
some
measure,
al¬ obligations funded whenever pos¬
though Deputy Secretary Burgess sible into long term marketable
recently stated that the Treasury issues.
"will proceed cautiously" with the
sale of long term bonds.
Never¬ Meeting the Question of Attrition

this

such

were

matter with the Government

turn thereto.

Reserve

there would

and

era

fallacy of reverting to a system
can only result in renewed
and continuing inflation, and use Government
their

told that

were

new

available

theless,

substantial

think

ing

which

unend¬

arguments
H.

well,

insofar

have

amount

in every garage, so did some
of the philosophy of thought dur¬

left who view the situ¬

mar¬

doubt,

two chickens in every pot and two

differently, but I earnestly
the bankers, and the

public

securities, there¬

regulated by the

now

cars

price

ing stream

John

their share

are

since

credit is concerned. As in 1929,

when

that

resulted

there

in what is
ever

law of supply and demand
as

tegrity of the dollar. Judging from
press,

na¬

Simply this:

ket, responding to the inexorable

to the program to protect the
the

the

among

Govern¬

1951, and the price level

fore, is

respect to monetary policies, both

agencies contributing

the

market?"

Government

Mid-West banker praises policy

of a free government bond
market, and says, despite bankers' fears, "there is npthing the
matter with it" Discusses problems confronting the Treasury
in its refunding operations, and concludes bulk of securities
must still be of short-term type, but long-term issues will be
forthcoming if there is evidence of buying interest by institu¬
tional investors.
Urges realistic pricing of new issues, and
advises banks, in arranging their bond portfolios to appraise
carefully the general credit situation.

with

We are, and have been,
in effect a free market

Vice-President, The First National Bank of Chicago

some

ment bond

By JOHN II. GRIER*

For

might well ask "What has

wise go into the Tax Anticipation
Bills.
Treasury trust funds will,

Thursday, June 4, 1953

Our

the

date

would

skeptics!

Forecasting Service has 35 years
market application.
This record

actual

attests

its

Join

success.

well-informed

our

criminating clients!
the STOCK,
GRAIN
CAST

(indicate

Monthly

Digests

ACT NOW!
check

and

mail

$70

NOW

COTTON

which)

circle

Send
and

the

Clip

end

ad,

Forecast

receive

dis¬
for

FORE¬

FREB

19531

indicate

wanted,

type

attach,

TODAYI

W. D. GANN RESEARCH, INC.
>.

JOSEPH

LEDERER,

President

Dept. C-143, Box 656, Scarsdale, N. Y.

Number 5226

Volume 177

...

The Commercial and Financial

Steel Production

.:.The777v7

;>>'■■■

Electric Output

State of Trade

Food Price

and Industry

"Progressive" Businessmen

Trade

Commodity Price Index

Auto

Current Thinking of World's

THE MARKET

Carloadings
Retail

...

Production

By A. WILFRED MAY

AND YOU

Index

From ICC Congress in Vienna, Mr. May reports agreement as'

Business Failures

By WALLACE STREETE

importance of early currency convertibility, but accompanied
by compromise provisions; and agitation for reduced tariffs.
Relates private opinions of European industrial leaders doubt¬
ing the full effectiveness of lowered tariffs in creating enough

J
dissatisfaction

Investor
Aggregate industrial production for the country as a whole
in the period ended on Wednesday of last week was little changed
from the near-record level of the preceding week. It continued to

1"--

earlier.

moderately exceed the level of a year

production the past week was at an

Steel ingot

100.3%, down 0.3% from the scheduled rate.
gain in the output of crude oil was reported
operations were strike-bound a year ago.

actual rate of

The year-to-year
substantial since

of steel producers and consumers
thumb this week, states "The Iron Age," na¬
tional metalworking weekly, adding that producers are beginning
viewpoints

Difference

stands out like a sore

about too much steel capacity,

to worry

while consumers are still

clamoring for more metal.

views aren't surprising to those who follow
the steel market, says this trade authority. Steel officials have in
Such divergent

the past

frequently been regarded as being on the pessimistic side,
the auto industry have been described

while robust consumers in
as

overly optimistic.
Since World

:7v

77--7.-7

:-'7

1 7

War II the auto makers have been

consistently

But during the 1930's the
the carpet for expanding too much.

right in their appraisals of the market.
steel

industry

was on

high fixed
costs, which means high overhead regardless of business volume.
Because of this, during periods of failing demand it has some¬
Steel people's fear

with the second-half outlook

sell at

broadly evident
this past week. Several factors

will

soon

time when the economic
tern has

cautious

to be

$26.2 billion, $5.2 billion above a year ago, according to the Fed¬
eral Reserve Board. Instalment credit, spurred by automobile buy¬

a gen¬

these

$4.9 billion above a year

THE

FIRM

are

not

that

materializing

ANNOUNCES THE

DISCONTINUANCE OF THEIR BUSINESS.

PLEASURE

IN ANNOUNCING THAT

MR. ABRAHAM
HAS THIS

DAY

being

US A3

come

Loans

ward.

MEMBERS AMERICAN

25 BROAD ST.,

NEW YORK

conviction : that the

countries

currencies

regarded as a distant goal... v.

Our direct

and

with

three definite steps are
is

here

that the entire

reserves,

urged.

steadily for¬
stocks are

77777:

CANAL 6-4045

7:777 7r

After June 1, 1953,

address all deliveries, confirma¬

tions and communications to our

Philadelphia Office.

Co.

Lille y

Philadelphia-Baltimore Stock Exchange

Members

program

PACKARD

BUILDING, PHILADELPHIA 2, PA.

N. Y. Phone

Teletype

Phila. Phone

CAnal 6-4045

PH 366

Rlttenhome 6-2324

•

the

trend

record-low

are

pleased to announce that

MR. SAMUEL 1.
(Formerly resident partner

of this past

Investor

has become

GOLD

of Lillcy & Co.)

associated with us.

Dissatisfaction

LAPHAM

;

Widespread
Investors

certainly do not

like the tax program.

Continued

ICC Con¬

changed to

several sessions.

-n

convertible

ample

telephone from New York to Philadelphia
has been

price-earnings and dividendprice ratios, if it keeps on

(ASSOC.)

WHITEHALL 3-1995

For

return

the

EXCHANGE

STOCK EXCHANGE

in.

interven¬

the stage is set for the
gress' running theme of lowered
adoption of decisive measures, . .',
tariff barriers is concentrated—
[and] unless the present oppor¬
in the statement:
tunity is promptly and effectively
"There can be no hope of a
seized, the whole movement of
Continued on page 23
convertibility will receive a se¬

possible, nothing of
material importance along
this Tine can be permitted for
many years ahead.

SPRING, STEWART & CO*
NEW YORK STOCK

its

[that]

above 1952,

armament

the

MEMBERS

compro¬

leavened

The blessing is given to

convertibility "is no longer to

set of efficiency
disposable in¬
will reach a new top this

year, fully 6%
with this trend

with
DEPARTMENT

also

typically

are

significance. They

and

management philosophy

via

a new

shortly will reach
:

mise

findings

price structure is
headed downward, and very

MANAGER OF OUR

UNLISTED SECURITIES

May

ratios. National

Yet

STRAUSS

BECOME ASSOCIATED WITH

Wilfred

equipment since the end of
the war have brought into

*
WE TAKE

'may be

INC: ^

"flexibility"

But

And

backed

are

its

peting bond returns, and they
are fully protected by a wide
margin of safety in earnings,
plus the backing of strong fi¬
nancial positions. Tremendous
investments
in
plant and

STRAUSS BROS.,

economic realities.

do have current

negligible, wiping out the
bugaboo of 1929 and 1937, en¬
ago. Non-instalment credit
forced liquidation, the down¬
Continued on page 33
ward pyramid. The interna¬
tional; situation is such that
while some overall reduction

effective

is-

s u e s.

which must
convertibility

introduction

exchange markets under
which a pattern of rates can be
reached
which
corresponds
to

con¬

important

Recommended

step

restore

foreign

ing, increased for the 12th straight month to a new peak of
nearly $19.7 billion. This was $399 million higher than at the end
of March and

set of

clusions

thef

high of nearly

with

decisive

by a 34-year-old pri¬ tion by monetary authorities to
organization's attending limit possible exchange rate fluc¬
membership of 1,000 leading busi¬ tuations and ensure that the in¬
that equities have been sold nessmen, non-governmental trade flow and outflow of foreign ex¬
down beyond anything war¬ organization officials and econ¬ change have the desired effect on
omists. They will be energetically the volume of domestic credit, and
ranted by the outlook.
publicized,
brought before
na¬ to have available measures to pre¬
*'7 $
*
tional
legislatures and govern¬ vent capital flights.
Stocks Not Over-Priced
mental bodies, submitted to the
The pursuance of healthy do¬
appropriate United Nations bodies, mestic policies, it is wisely stated,
If any one thing is clear, it
and, it is anticipated, to President will enable the countries to lib¬
is that stocks are not over¬ Eisenhower personally by Warren
eralize their trade position, which
priced now. As adjusted for Lee Pierson, President of Trans- is essential because no country
American
World
Airlines,
and can know the true value of its
the contraction in the pur¬
Chairman
of the United States currency so lo/ig as it maintains
chasing power of
dollar, Council. 77'.'77..77:77'" •'•
: * severe import restrictions which
both the industrial and rail
7-7 Convertibility -7 77*7; impede the normal functioning of
averages now are well below
The question of convertibily of markets, and which are bound to
lead to a reduction of exports as
their 1946 tops. Yields are currencies is a focal point of the
well as imports.
7
,
;
,
group's sounding off.
Premised
more than 2Vz% above com¬

cludes "The Iron Age."

new

the

anti-infla¬

vate

to the steelworkers' bid for an increase. Offi¬
cial statements notwithstanding, best guess is that there will be a
wage increase in the neighbornood of iu cents an noui anu a uase
price increase of about $4 a ton. Odds favor settlement without a
strike, but peaceful agreement is not considered a sure thing, con¬

erally agreed-

either

realize

fears

prepare an, answer

April soared to

come

trend, the

the market

when

come

will

accumulation is slow, this trade magazine reports.

of liquidation un¬
doubtedly will be maintained;
and then eventually the time

depends on the outcome of steel wage negotiations to
be resumed this week after a recess permitting management to

credit

taken

pressure

Much

Consumer

the

aged

capital formation.
as

man¬

considera¬

psychological

will

week-

tions has

world in itself. As long

tions dominate the

reached their highest point

of 1952.

insulated

its

long delibera¬

up
as

1, 1949, although they are still suffering from imbal¬
Sales are still very brisk, and despite record shipments from

vehicles in
like period

structure

achieved

tionary

the conclusion

production will continue;

past week totaled 101,637 cars compared with 132,157
the previous week and 76,256 cars turned out in the

might in time spread to the
business world, yet the price

6ince Sept.

strikes.

investors

made

Meanwhile, auto makers are in the vanguard of consumers

registered further declines stemming from suppliers'
According to "Ward's Automotive Reports," output in the

Maintenance of financial stability

credit policies,, and bal¬
ancing of budgets at levels which
are compatible with required

pressing bids for more steel. Most of them are still juggling sup¬
plies to meet production and will have at least a full month's un¬
delivered orders carrying over into the third quarter. They insist

duction

the

gress

n e

has

the past week passenger car pro¬

political

Con¬

are

In the automotive industry

14th

group

Commerce

still too small, despite recent increases in extra
They point out that a substantial drop in the ingot rate
could quickly r^ise unit costs above selling prices. Slashing prices
to keep high cost facilities operating would result in cut-throat
competition at its worst, continues this trade weekly.

ance.

well

problems, this

the

program

tivity. The factors which have

charges.

mills inventory

economic

offers a
action.
It
wisely emphasizes primarily the
action to get their house in order
to be taken by countries working
their way back to convertibility.
definite

Actually they don't fear too much capacity so much as they do
high fixed costs and temptation to slash prices when orders lag.
Some steel officials remain outspoken in their belief that profit

now

pat¬

shifted much if

rious setback,"

Chamber

of them are now expressing fear that capacity
supported by demand, "The Iron Age"

Warehouse inventories have

face

International

be too large to be

that current high

not

from its plateau of susd record-breaking ac¬

any

points out.

margins

actual expansion

Russians' attitude and

behavior at Conference typify their non-cooperation in
of Political Peace Offensive.

psychology of the mar¬
VIENNA, Austria—Despite, the
ketplace. Confidence obvious¬
"Great Debate"
atmosphere at¬
ly has contracted sharply, at a tending a Western discussion of

spent over $5 billion to raise its capacity by more than 26 million
tons. And it is still expanding. Although steel officials are proud
of that record, some

end American aid; and on

set the

7:v*:

since World War II the steel industry

In the seven years

reserves

of East-West trade that is feasible.

to have combined to up¬

seem

loss than to drastically curb pro¬

duction, this trade weekly notes.

dollar

made

was

of too much capacity is based on

times seemed wiser to

(2409)

Chronicle

The impage 29

Exchange Place

•

Telephone WHitehall
June

1,^1953

CO.

New York City

3-1975

The Commercial and Financial Chronicle

(2410)

laws

passed giving national
permission to have trust
departments and we, like so many

A Commeicial Banker Looks

Department

Is1

for

institutions.

other

wanted

leaving

able

banks, and points out their value to
banking functions. Cites advantages to public of trust business
by banks, and indicates that customers of trust departments of
commercial banks are receiving services at a bargain. Advo¬
cates higher statutory trust fees, and stresses responsibilities
of trust officers, particularly in their investment operations.

fer

partments by commercial

etc.

agent,

have

share their friendship with others

"Winning in Wall Street"

is, of

tinguish

dis¬

classic to

course,

between

those

persons

who

us,

ice and, as someone described
not be
best

compelled to introduce

girl

roommate.

our

monies

it,

safety

our

for

and

reasonable in-

are

unit is the number

So when

one.

located

office at 30 Broad Street.

I placed this name—"A Commer¬

The newspapers had
wrote stories

the

nancial units should be

headlines and

cial

Banker

Looks

Department"—on

His

Trust

tation

about

only

transpor¬

entitled

small town newspaper
"The Mulligans Look at
a

pinch
our

themselves

realize

assets of all kinds
had grown and far exceeded those

was

lively exchange.

before

this

say

Maybe

conclusion,

•

partments

companionate

veloped.

the

case

de¬

great institution like the Security
*An

address

Mr.

Helm

before

the

-New York State Bankers
Association Anuual Convention on board

the

own.

Trust
owe

Departments,

their

existence
own

Chemical

need

and

for

predecessor,

their

the

trust

bargain

permission

have

was

clients, get the biggest
offer.

Many
cussed

features

Time

permit

form

the

might

look

our

partment.

1918

this

few.

dis¬

today

will-only

you

questions and

order:

individual

(2)
the

should

How

investment

appoint

anyone

trustee?

organize

unit

■

the

trust

department?
•

(3)
cers

How shall the senior offi¬
participate in the develop¬
operation of the depart¬

ment and

ment?

(4)

What

contribution

should

the bank's earnings?

ment toward

Referring to the first question,
it

difficult

for

under¬

stand why banks have any serious

competition

from

individuals

for

trust appointments. In the matter
of
corporate trusteeships, there

actually is
these
to

litte

same

competition,

apply

reasons

personal

trusts

and

individual, no matter how ex¬
perienced, the following essential
an

requirements:

Established 1925

UNDERWRITERS and DISTRIBUTORS

of INVESTMENT SECURITIES
BROKERS of BONDS,

Private Wires

•

STOCKS, COMMODITIES

Home Office: Atlanta

•

Phone LD-159

pre¬

(a)

the

justments

that

the death of

expense

would

and

come

ad¬
with

individual trustee.

(b) Practically unlimited finan¬
responsibility.

cial

page

make

for

drawback

this

technical

cific

fabulous
earning
example, Union Pa¬
preferred earned its divi¬

dend

17 times

For

1952

Atchi¬

and

11; and both have paid for
years. Just because UP preferred
son,

down

from

1952,

and

Atchison $2.50 down from 58, does
not mean that these premier pref¬
erence items are in a "cul de sac."
These price dips are just a nat¬
ural, and quite obvious reflection,
of higher interest rates. Both is¬
sues

are
non-callable, and
roads, top-flight companies.

Baltimore

both
*

Ohio

Reaching a little higher in the
yield department, we have Balti¬
more and Ohio $4
non-cumulative,
non-redeemable
has

gained

cently.

For

long stretch, from
this issue languished

1932 to 1947,

without

preferred which
of stature re¬

lot

benefit

dividend

larations;, One dollar

was

dec¬

paid in

(which sold for 18 in the fall of been said lately about New Haven.
The management is highly cost
vastly improved rail¬ conscious and probably at no time
road solvency and earning power in New Haven's long and some¬
into higher price quotations.
what
checkered career has the
1950) have done virtually nothing

to translate

This

little unrealistic

since

railway preferreds should actually

physical

condition

erty been

than tion,

faster

because they are closer

the

prop¬

excellent. Cash posi¬

include

you

capital

and

accounts, is solid; and this

reserve

register, and the yields fact, together with projected 1953
per share earnings of nearly $20
purchase far ahead of on the $5 preferred, suggests that
more
may
be
done
equivalent industrial equities of something
to the cash

number of them should have

attracted

preferential

investors

But, alas,
railway

nature.

remember

the

failures of the early 'thirties, and
even
until this day they refuse

about this dividend

by July 1, will

efficiency,

which

arrears

equal $10.50. As¬

suming merely
the regular $5
(cumulative if earned) the cur¬
rent yield
on
New Haven pre¬

to recognize the vast debt reduc¬
tion, the whacking improvement in ferred
a

at 57 is 8.75%

few

extra

and hope for

bucks

declared

the $100 billion
total postwar expansion in U. S.
industry, which, taken together,
place
railroad
securities
on
a
higher level of quality and reli¬

this

ability

is convertible share for share into

and

than

time

any

the

last 20 years.

Moreover,

diversity

find

you

holdings, where
bizarre

not

but there's another

nice high

can

assort¬

You

can

secure

straight unrestricted

cum¬

glance at

may

cause

version

turn

back

feature.

five

the

years

ago

Grande

miles

away

just

so,

financial

when

pages

Denver

preferred

from

the

being bought fori income

participating, profit sharing,
power

and

provisions
What

call

and

are

all

looked

conversion

There

non-cumulative*

payoff window. Look at it today.

tive

earned,

con¬

ulative preferred, a preferred cu¬
mulative for three years, cumula¬

if'

today's
you

pooh-pooh the worth of this

options on future earn¬
Rio
ings and income than among rail¬
preferreds?

quote

gimmick here;

yielding preferred

common.

ment

here

the arrearage is
unjustified. Not only that,
at

away

NYSE

Preferreds

to. those, who like
sort of "straddle" in

their security

nibble

the

Features of Railway

convertible preferred.

Continuity of management

—without

they

power.

but' way

fully

estates.

Where is it possible to acquire in

Members New York Stock pitchange and Other National
Exchanges

ought

you

Pacific

a number running even better this year. Of
the major Eastern roads B & O
profit-shar¬
has in the past two years, done
ing, features that link them so
probably the best job in debt re¬
vitally with common stocks.
duction ($90 million since 1941),
If you pause
to examine the
cost
control, and dieselization
railway record, you'll notice that
(now above 75%). Assuming con¬
a ; greatmajority
of
common
tinued ability to earn and pay $4,
stocks in this field are now selling
the yield of 8.7% on BO preferred
well above their 1946 highs (ex¬
currently is by no means uninter¬
cept perhaps N. Y. Central and
esting.
■
■
*■;
Penn
RR.)
but. the
preferreds,
New Haven
save
for ' "reorgs" like Missouri
Pacific
and
Central
of
A lot of very nice things have
Georgia

convertible,

expect from the trust depart¬

BANKERS

then

Union

less; particularly when

have

commons,

trust de¬

I put these to

(1) Why would
an

INVESTMENT

income,

look

1948, none in 1949, $5.00 in 1950
($1 for 1949 earnings) and the
four-month
earnings' figures in stated $4 in 1951 and 1952. But
the picture now is a lot clearer
many years being racked up this
with actual earnings per share an
spring, it's just a little silly that
impressive ;$46.39 for 1952 and
so
many preferreds stay motion¬

reflect; improvement

need.for de¬

posit and loan facilities.

Many of us
too, that our
especially,. our per¬

Features of Trust Department

banking department back in 1823,
because there

it.

feeling,

Manufacturing Co., got

legislative

clients,

sonal trust

service.

the

allocation

have

like banks,

organization
to

Queen

Bermuda, May 24, 1953.

for

Why Trust Departments?

Our

This

their

comparative

are

•

banking

departments have had to

into

department, I urge
carefully whether

real need for additional

necessary;

traditionally, predomi¬

nate,

come

not

fiduciary facilities. The decision
may
be that an expansion and
development program may more
constructively and more profitably

banking department.' Our

had

trust

bank- does

figures size- be in some other direction. We
typical, of course, of our should not for one moment forget
neighbors. Earnings-wise they are that the larger our
fiduciary busi¬
not
comparable to the banking
ness,
with accompanying expo¬
department, and that is one of sures, the more of. our
capital
the points I want to cover today.
should
be
considered

institutions, trust de¬

many

and

they
wise

associate jumped at
as I am an admirer

■of trust work and its
accomplish¬
ments.
' *
j

the

These

over,

will

have; a lot to
looking back, but in this

instance,
a

convention

else

someone

sure

consider

there is

trust officers beamed and realized

usefulness.

community

commercial

have

fiduciary

^Neighbors Look Back."

and

are

structive'

that

Their Neighbors" with a footnote
that
in
tomorrow's
issue
"The

chartered,

services

needed, and I dis¬
tinctly believe that they are only
successful if they prove |heir con¬

lished in

their

because

facilities

nearly $5 billion of se¬
was
reminded by a member of curities through the streets.. Our
our
trust
department that this banking officers, who had con¬
should be a two-way street.
He sidered themselves the ruling el¬
"then told of a story that was pub¬ ders, looked askance and had to
remarks,

assured

who were prepared to give them' seeking a fast speculative buck in ferred at 45, or Atchison $2.50 at
our share markets, and those de¬
52. Both of these elegant income
a
necessary service.
Our motive
ploying saved producers are non-cumulative, but
was to give them a complete serv¬

c o m

e
consoquite properly felt that there was
n a n t
with
associated Trust Co. of Rochester, which has too much possibility that they
done so well in building a fine form
with metropolitan banks and who
same.
In
the
an affinity.
I don't need to
have grown up in large institu¬ banking department, and in Phil¬ tell
field of railyou that these trust services
r o a d
tions, are familiar with the irony adelphia, where the grand old and banking services now over¬
securi¬
Girard Trust Co. arranged a mer¬
and, I must
ties, however,
lap so very much that practically
this effort
ger to obtain a thriving banking every commercial bank and every
add, the huat
:tn or
business and round out its facili¬ trust
with
basic distinc¬
company is exerting its., full
which
ties. There are many similar ex¬ effort
the
tion has been
to
become
a
completely
members
of
amples in New York City and rounded institution.
muddied
by
one
departthe
throughout our state and the coun¬
specula¬
Basically, we are a part of what,
:m e n t
can
try. In most cases though, trust might be called the service indus¬
tive splash of
Ira U. Cobleigh
•speak of the
departments were organized and try. To be of the most use in our
railroad com¬
other
had to be developed, as was our
depart¬
mons, many of
communities, we must make our
own
ments. There
experience. In these cases, services as broad as possible in which
a
fancy
have,
in
way,
are
it has often been like a boy find¬
wits all
the financial field. In addition to gained great altitude and left the
through our
ing it difficult to have his matu¬ this defensive purpose, there has preferred issues to flounder in a
institutions
rity recognized in his home town. usually been a community need twilight .zone between the
ro¬
•who can pic¬
The neighbors cannot realize that for additional
fiduciary facilities. mance of a common stock, and the
he has really come of age. For¬ In
turesquely dejnany cases recently, it was income reliability of a good rail¬
scribe
how
tunately, this was brought home this need for additional fiduciary way bond.
to us by some outside publicity
Harold H. Helm
every
other,
facilities that prompted the or¬
Because of the fact that railway
back in 1950, when we moved our
department is**
ganizing and the giving of char¬ preferreds have been so obviously
Fiduciary Division and our Invest¬ ters to new banks. I emphasize
getting a free ride. This is as it
ignored in recent markets, this
should be for, naturally, we all ment Division from 165 Broadway
this because I think it most, im¬
piece is specifically dedicated to
like to feel that our particular to our newly acquired and better
portant that banks and other fi¬ them. After all, with the finest

All

railway preferreds; the values and yields
they offer, and the relative disdain with which they have been
treated by investors.

our

serve

not

and

A few short lines

also

corporate clients as trustee, trans¬

de¬

Prominent New York banker reviews development of trust

personal
us
and
fiduciary services

from

with

By IRA U. COBLEIGH
Author of

wanted to stop our

arranging

President, Chemical Bank & Trust Company,
New York City

Railway Preferences

Our

defensive,

somewhat

was

customers

By HAROLD II. HELM*

promptly.

qualified

action
as

Thursday, June 4, 1953

were

banks

others,

At His Trnst

...

than

are

lot

worse

preferred.

securities
purposes

•

And voting
Chicago* Milwaukee

sinking fund
over

the

lot!

For

even

fancier

yield,

gaze

want; quality, rea¬
upon
Chicago, Milwaukee, St.
income,
fancy
income, or alluring prospects of Paul & Pacific $5 non-cumulative
speculative gain? "Ye pavs yer participating preferred which sells
money and yer takes your choice."
on
the NYSE at 44 to yield
a
sonably

you

assured

Union Pacific
If

all

you

want

reasonably

king-size

11.6%

dend paid last

year.

the

divi-

The payment

Number 5226,;. The Commercial and

Volume 177

June 5, 1953 (New York

Since 1946 at
paid in every year
and, in 1950, $7 was paid thanks
to a
special provision whereby
the preferred participates in earn¬
ings with the common.

record is quite good.

least

was

The Milwaukee road has

Investment

Boston

Security Analysts Society

Club, 'June 4,
in
the

trips

June 5,

followed by field

Another

It's

yielder

high

Bond

Chi¬

yield

this

cumulative

wood Club,

preferred

to: the

only

is for

Club

Field

Day

the

Club

Country

New

and

Rye, N. Y.

day

Chicago
at

the

40th

June 12, 1953
New

Knoll-

Lake Forest.

York

Analysts

(New York City)

Society

spring

June

festival

Security

the

(Connecticut)

Security Traders Association of
Connecticut summer party at

support a divi¬
dend of at least $3.25 and if this
earnings to

5, 1953

Shuttle Meadow Club.

12, 1953

Investment

Bankers

nual conference at the Santa Bar¬

June 19,

1953 (New Jersey)

Aug; 20-21, 1953

nual

Club

field

New

Jersey an¬
Rock Spring

day

1953'

(Los Ang

Rocky Mountain GroupBond Club of Denver annual sum¬
mer

Traders Association

annual

summer

frolic

Albany

Security Traders Association of
Sept. 16-19,1953 (Sun Valley, Ida.>
annual spring party
National Security Traders Asso¬
the
Arrowhead Lodge, Lake
ciation 20th Annual Convention.
Arrowhead, Calif.

Los Angeles
at

Oct.

14-16

(Louisville, Ky.)

Association

Municipal Bond Dealers Group
of Cincinnati annual party at the

Firms Board

Kenwood

Stock

ing.

Country Club June 26;

cocktail party,

(Hollywood, Fla.)
Investment Bankers' Association

June

27, 1953 (Chicago, 111.)

of America Annual Convention at»

Chicago Bond Traders Club An¬

the Hollywood Beach Hotel.

—

good guess, then the yield at
price of 40 would be around
8.3%. Earnings predictions on NW
always

bit baffling since the
usually show a

months

few

loss. For the first six months last
year,

the loss was over $9 a share

the

This year things

common.

lots

going

are

better.

They've got a new president who
aims

and

what has been

correct

veryikhigh

transportation
making

along, those lines.
ratio

vital

real

ratio;

progress

For April this
from

reduced

was

"49.3-%-to,43.4%. The target they're

shooting at is^a 40%-ratio and if
they hit

that

may

you

expecf"a

quite dramatic upgrading of NW
net.

here

Custom

dend payment

distribution

dends,

has

set

the

divi¬

each March for the
preferred
divi¬

indicated by the earn¬

ings of the preceding year. Thus
$3.25 per share paid March

the

6, ,1953 is the payout, on
1952
earnings. But if 1953 is as good
some analysts have prophesied,

another payment

might be possi¬
and the full $5
.might
even
be
declared
next
"March. And just to sweeten things
ble in December,

NW preferred is also converti-

ble share for share into common.

obviously
speculative
preferred has considerable in¬
come bearing merit at the 40 level.

Although
NW

I think it sold at 76 in

1946.

Scr^e^O^herCompanies
those"" who

For

feel

He's the

that. _tKis

piece has over-stressed the some¬
what marginal issues in the in¬
terest of exalted yields, "perhaps
I should also refer you to some
of the better grade

Railway

ern

shares: South¬
preferred at 78

yielding 6.4% and Wabash 4y2%
preferred at 64 yielding 7%, have
excellent dividend coverage. Then
if you

want to stray beyond our
borders, you might look at Inter¬
national

Rys. of Central America

preferred with arrears of $41

share,

There's been

ble

ovei^
dend

at
60 y2political trou¬

some

the

Guatemala

earnings

selling

new

line,

what

a share. Amount of
declarations for this

but

seem

that

most

part

written,

never

minds

experience and know-how of
the entire Chase organization,
he gives your banking
problems and interests the
close, personal attention
they demand. Because your
bank and your territory are
his business,

he knows you,

knows the type
want,

of service you

and does everything

possible to

see

Bankers who

that you get it.

want

individual

appreciate the

pre-*

"Wh? Don't You Talk

for the

under¬

the People at

Chase?"

possible to reinstill in the
of mid-century investors,

twenties.

in railway securi¬

prevalent
The

earnings

the

mid-

are

there

today, however, for all to

see

and

latching onto selected carrier preferreds is certainly not the stupid¬
est

delivered in reorAlso it iust has not

the confidence
ties

you

Backed by the

but

ganization.
been

New York.

personal man-to-man quality
of Chase correspondent service.

year

railway

sold

job for

attention

ferreds have been neglected partly
were

Chase who

man at

the

divi¬

does

were

is uncertain.

because their shares

with

turning pinko,
the last year

thing

you

could do under the

uncertain market conditions of the

present. It may be
exercise

good time to

preference for railway

preference shares.

Meet¬

Nov. 29-Dec. 4, 1953

Thursday evening

25.

first

Exchange

of Governors

the

are

Hotel

(Aug. 20) and Park Hill CountryClub (Aug. 21).

Calif.)

(Philadelphia, Pa.)

Philadelphia

(Denver, Colo.)

IBA

Club.

June
June

California Group of Investment
Association second an¬

out¬

June 25-26,1953 (Cincinnati, Ohio)

(Chicago, 111.)

Sleepy Hollow Country Club.

extent

outlook

Current

earned.

Club
field

Annual

Westchester
■"Beach Club,

little

1953

1953
5, 1953

annual

Northwestern preferred.
hard to pinpoint the

cago

Northwestern

annual York

Bond

summer

Convention,

(New York City)

12, 1953

Municipal

•

June

Chicago

1953 (Baltimore, Md.)

outing at the Elkridge Club.

rity today than in 1946.

Annual

Michigan

(Santa Barbara,

Calif.)

'''■

Bond

Bond Club of Baltimore

June 28-30, 1953

(Detroit, Mich.)

ing at the Plum Hollow Country

Bigwin Inn, Lake of Bays District. june 19-21,

area

Providence

Canada

Detroit &

at the Nordlo

Country Club.

bara Biltmore.

(Bigwin, Ontario,

Investment Dealers' Association
of

June

secu¬

June 16, 1953

club.

Canada)

meeting and New England
Regional meeting at the Harvard

June 5.

better

Francisco Security Traders

June 9-12, 1953

preferred

substantially

5-7, 1953 (San Fran., Calif.)

(Boston, Mass.)

annual

has ranged
a high of 82% in 1946 to a
of
17
in! 1949. Technically

June

Field

Association Spring Party.
June 4-5, 1953

standing callable at 100. An active

it's

Country Club.

Securities Trades Association of

stead¬

for the preferred substan¬
tially above the $9.40 of last year.
There are
1,118,652 shares out¬

low

nual Spring Outing

Hollow Coun¬

try Club.

San

ings

City)

Bond Club of New York Annual

Field Day at Sleepy

EVENTS

improved yard efficiency; and the
road should show per share earn¬

from

COMING

ily hammered away at transporta¬
tion
costs
by dieselization
and

issue,

(2411)

Financial Chronicle

NATIONAL BANK
OF THE CITY OF NEW

YORK

HEAD OFFICE: Pine Sfreef corner

of Nassau

Member Federal Deposit Insurance

Corporation

The Commercial and Financial Chronicle..

(2412)

Mississippi Power & Light Co.—Memorandum—John C. Legg
&

Dealer-Broker Investment

York
New

4, N. Y.
Susquehana & Western Railroad Co.—Reappraisal

send interested parties the

Co., Ill Broadway, New York 6, N. Y.
Quemont —Report — R. A. Daly & Co., 44 King Street, West,
Toronto 1, Ont., Can.
R. K. O. Pictures—Data—Ferris & Co., First National Bank
Building, Dallas 1, Texas. Also available are data on Bausch

be pleased
following literature:

Lomb

Attorneys' Investment Letter—Designed for attorneys to equip
them better to advise their clients

Securities

technical matters too frequently understood only
by professional investors, such as formula plan of investing
for trust accounts, advantages and disadvantages of discount

etc.—Ira Haupt

Co.,

and

—

Cigarette

Makers

—

Analysis

Pointers"—Francis

Pont

Co.,

Wall

Street,

Corporation and

"Gleanings" is

Also available is

Natural

Western

CHICAGO, 111.

Also avail¬

Revell

Ute Royalty and English Oil.

Gas

Co*—Memorandum—Rotan,
Moreland, 705 Travis, Houston 2, Texas.

Raymond F. Revell
(Special to The Financial Chronicle)

Co., Pacific

Building, Salt Lake City 10, Utah.

able is information

priced stocks. In
analysis of Alleghany

list of Favored Stocks.

Carbide

National Life

Seasonals in Stocks, and a list of low

the current issue of

Chiyoda-ku,
Tohoku Pulp

Utana Basins Oil—Information—W. D. Nebeker &

New

York 5, N. Y. In the same issue are discussions of Bank Stocks
and

data

Inc.—Analysis—($5 per copy)— John H.
Co., 63 Wall Street, New York 5, N. Y.
& Carbon—Report—Granger & Company, 111
Broadway, New York 6, N. Y. Also available are reports on
Climax-Molybdenum Company, and Vanadium Corporation
of America, and an illustrated brochure on the uranium de¬
posits of the Colorado Plateau.

"Market

issue

current

Marunouchi,
are

Lewis &

Union

Co., 330 Bay

—

Ltd., 4, 1-chome,
In the same issue

Onoda Cement.

Trans World Airlines,

Ill Broadway,

Stocks
Bulletin
Ross, Knowles &
Street, Toronto 1, Ont., Canada.

Canadian

Co.,

Tokyo, Japan.

exempt bonds, stocks with dividends partially or com¬

pletely tax exempt,
New York 6, N. Y.

Optical Co.

Tokyo Rayon—Data in current issue of "Stock Bulletin," Nikko

investment problems—

discusses

tax

Co., 120 Broadway, New York 5, N. Y.
Hampshire—Analysis—Ira Haupt &

Public Service Co. of New

the firms mentioned will

that

understood

New

York

—Sutro Bros. &

Recommendations & Literature

Raymond F. Revell With
While, Weld & Co.

Co., 22 Light Street, Baltimore 3, Md.

Missouri Pacific—Bulletin—Hirsch & Co., 25 Broad Street,

.Thursday, June 4, 1953

Mosle

with

has

—

Raymond F.
associated

become

Weld

White,

South La Salle Street.

Co.

vestment

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

In¬

Barclay

with

formerly

was

detailed analysis of the Beryllium Corp.
Fire & Casualty Insurance Stocks—1952 earnings

231

Co.,

Mr. Revell

and

industrial

utility stock trader.

Graphic
.

Forecasts—Stock, grain or cotton forecast—$70—ineluding free monthly digests to the end of 1953—W. D. Gann
Research, Inc., Dept. C-143, Box 656, Scarsdale, N. Y.

Helicopter Industry—Analysis—Bache
New York 5, N. Y.
Inflation

and

the

Co., 36

NSTA

Wall Street,

•

Peabody &
Also available

LOS
W.

Harold

analysis—Blyth & Co.,
Inc., 14 Wall Street, New York 5, N. Y.

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
onri

Stocks—Bulletin

Co.,

become

Security

Pershing

Dealers Association:

Nolan

C. Darby,

Edgerton,
Lofgren & Co.,

Jr.,

Grand

Pine

Limited—Study—Dominion Securities Corporation,
Exchange Place/New York 5, N. Y. Also available is the

June

issue

"Investments"

analyzing business
development of Canada.

and the economic

American

Nepheline Ltd.—Analysis—A.

Edwards

501

Lexington Avenue, New York 17, N. Y.
Asbestos
Corp.,
Ltd.—Memorandum—Greenshields
Aldred Building, Montreal, Can. '
Augusta

Chemical

Company—Analysis—Graham, Ross

Inc., 82 Beaver Street, New York 5, N. Y.
Brunner Manufacturing
Co.—Bulletin—De Pasquale
William Street, New York 5, N. Y.

Cincinnati

Ball,

Co.

Ltd.—Memorandum—McCuaig

Bros.

Radio

Company—Analysis—Stieglitz

Co.,

Witt Conklin Organiza¬
tion, 100 Broadway, New York 5, N. Y.
Also available is a
bulletin on Compo Shoe
Machinery Corp.
Broad

Inc.—Analysis—Eastman, Dillon

Co.,

System—Brochure—Paine, Webber

land

Jackson

Corporation—Review—Ross,

house

Direct Private Wire

Detroit Stock Excb.

Association

Philadelphia:

Lewis

Joseph P. MineWarren

Association:

John

Saunders, Foster

;

Security Traders Club of St. Louis: Earl

DENVER, COLORADO

Members: N.

Wichita

Security Dealers Association

Traders

Club:

Warren

The
..

shortly.

balance

the

Affiliate

,/•.

will
.

be
'

wire

Joins

Go.;

Amos

dircet Private

Sudler

Co.,

Watling, Lerchen

(Special to The Financial Chronicle)

DETROIT, Mich.—Cornelius M.
Harper, Jr. is now associated with
Watling, Lerchen & Co., Ford
Building, members of the New

Rauson-

held

Denver.

announced
,

12, 1954.

the installation of

Hagensicker, Reip-

Cortner, The

Chairmen

annual

To Amos Sadler

Davidson Co.

Trinity Place, New York 6, N. Y.

Bond

fill

Troster, Singer & Co., 74 Trinity
Place, New York City, announce

„

Troster, Singer & Co.

the

Troster, Singer Wire

Gardner, and Herbert M. Roach, Wibbing & Co..
The Securities Dealers of the Carolinas: Robert D.
King, First
Securities Corp., Durham, N.
C., and Arthur C. McCall, Alester
Furman Co., Greenville, S. C.
Twin City Security Traders Association: Fred S.
Goth, Irving
J. Rice & Co., St. Paul, Minn., and Kermit B.
Sorum, Allison-Wil¬
liams Co.,
Minneapolis, Minn.

AMOS SUDLER 4 GO.

which

holdt &

Governor

until

Jan.

Co.

elected

was

election

Security Traders Association of Portland, Ore.: Robert W. Pitt,
Blyth & Co., Inc., and George F, Patten, George Patten Investment

Wood

DETROIT, Mich.—At a meeting
of the Governing Committee of
the Detroit Stock Exchange held
on May
26, 1953, Warren A. Wood
of Baker, Simonds &
Company
vacancy

New York Hanseatic Corp. and Reginald J.Knapp, Wertheim
-

Klima,

the installation

announce

W. A. Wood Gov. of

Securities Corp.

& Co.;

Manley, Bennett & Co.
l;
Security Traders Association. of Los Angeles: Charles L.
Holton, Holton, Hull & Co., and Neiland B. Yam Arsdale, Blyth
& Co., Inc.
Security Traders Association of. New York, Inc.: Soren Niel¬
sen,

pleased

also

was

& Co.

Schollenberger,. Campbell,.McCarty Cq., and, John O. MacFarlane,

Company of Virginia—Analysis—Eisele &
King

are

previously with Edgerton, Wykoff

Shorsher,

Co., Inc.
* '
Securities Traders Assn. of Detroit & Michigan, Inc.: Herbert

Libaire, Stout & Co., 50 Broadway, New York
4, N. Y.

Traders

First California Co., Inc.
Seattle Security Traders Association:
Sidney
& Marshall, and Paul Johnson, Blyth &

Rroad-

Co., 255 Bay Street, Toronto, Can.
Kellogg Company — Analysis — Glore,
Forgan & Co., 40 Wall
Street, New York 5, N. Y.
Laclede Christy Co.—^-Analysis—H. E.
Herrman & Cohen. 14
Wall Street, New York
5, N. Y.
Life Insurance

Reed, Lear & Co., and H. Sheldon Parker, Kay, Richards & Co.
San Francisco Security Traders Association: Albert A.
Hewitt,

Knowles &

Co.—Memorandum—Doherty

Associates. Mr. Goulden

Security

tree, Steiner, Rouse & Co.
Pittsburgh Securities Traders

New York 4, N. Y.

Co., 330 Bay Stiteet, Toronto, Can.
Interprovincial Pipe Line

Cass

Smart,
Joseph & Co.

Hornblower

Weaver,

New Orleans Securities Traders Association:

Curtis, 25 Broad Street, New York 4, N. Y.
Hoover Company—Analysis—H. Hentz &
Co., 60 Beaver Street,
International Utilities

Quincy

Ross, and Francis D. Schas, Bullington-Schas & Co.
Nashville
Security Traders Association: George M. O'Callaghan, Equitable Securities Corp. and N. Peyton Evans, Cumber¬

Street; New York 5, N. Y.

General Telephone

officer

Shipley

Jacoby, Jr., Thayer, Baker & Co. and John C. Carothers, Jr., H. M.
Byllesby & Company, Incorporated.
Kansas City Security Traders Assn.: Theodore F.
Wagner,
Harris Upham & Co.
Memphis Security Dealers Club: Howard C. Ross, Leftwich &

Company—Bulletin—Baker, Simonds

Stores,

Robert

the

w a s

Investment

Wall

Co., Buhl Building, Detroit 26, Mich.

Fair

and

past

Rotan, Mosle and Moreland.

Eastern Industries Inc.—Bulletin—De

Food

Kraus,

Edgerton,

Wykoff & Co.
and

Oswald,

epartment'

Investment Dealers Association of Houston: William H. Minar,

Street, New York 5, N'. Y.
Cramp'.on Manufacturing
&

George

Dealers Association: F. Boice Miller, B. J.
Co., Miami, Fla. and Clyde C. Pierce, Pierce-Carrison
Corp., Jacksonville, Fla.
Georgia Security Dealers Association: Lex Jolley, Johnson,
Lane Space & Co., Inc., Atlanta, Ga. and Samuel Preston, Han¬
cock, Blackstock & Co., Atlanta, Ga.

Co., 276 St. James Street, W., Montreal, Can.
Collins

Burge

Florida

Mining & Smelting—Memorandum—Intercity Se¬
curities Corp., 50 King Street,
West, Toronto, Ont., Can.
Breweries

Club:

Van Ingen &

Brunswick
Canadian

Bond

Weeks.

& Co.,

Co.

Stock

trading

for

Forest

Clowes & Oswald, Inc., and Harold Roberts, John E.
Cleveland Security Traders Association: Fred

Sons,

was

manager

the

Gerold D. Bachar, J. A.

New York.

conditions

formerly

Aluminium

Ship-

Hogle & Co.,
and John P. Haggerty, Bosworth, Sullivan & Co., Inc.
Bond Club of Louisville: Charles C. King, The Bankers Bond
Co., and Russell Ebinger, Wagner, Reid & Ebinger, Inc.
Bond Club of Syracuse, New York: Everett W. Snyder, E. W. "
Snyder & Co., Syracuse, and Warren R. Wallace, Fayetteville,

Street, New York 5, N. Y.

Ave¬

Mr.

nue.

Lynch, Pierce, Fenner & Beane, Phoenix, Ariz, and Orville
S. McPherson, Henry Dahlberg & Co., Tucson, Ariz.
of Denver:

South

609

-Merrill

Club

asso¬

with

ciated

Lynch, Pierce, Fenner & Beane, Birmingham, Ala. and
Alonzo H. Lee, Sterne, Agee & Leach, Birmingham, Ala.
Arizona Association of Security Dealers: William Sorrenson,

Bond

-Stanley Heller &

Calif.—Forest

Merrill

Averages* both as to
a
13-year period —
Front Street, New

mortd

performance over
National
Quotation Bdreau, Inc., 46
York 4, New York.
"Research"

Alabama

Smith,

Chronicle)

Financial

& Company, New York City
Chairman of the Advertising Committee of the National Security
Traders Association, has announced the appointment of the fol¬
lowing Advertising Chairman for Affiliated Associations for 1953:

used in the National Quotation Bureau

to The

ANGELES,

Shipley and Eli Goulden have

NSTA ADVERTISING COMMITTEE

Insurance Stocks—Annual comparative

vi^M

Edgertoa, Lofgren
(Specftfl

Investor—Literature—Kidder,

Co., 10 East 45th Street, New York 17, N. Y.
is the Favorite Fifty—Analysis of the 50 listed stocks most
popular with professional
management — relative
values
since 1947.

ForestW. Shipley With

Notes

York

Detroit

and

changes.^

Stock
^

Ex¬

:„

Number 5226 ...The Commercial and Financial Chronicle

Volume 177

From

(2413)

by other factors, than
initiating cause.

Major Types of Recession

Washington

of the News

This type of a recession is com¬

as six major
types of recession: (1) Inven¬
(2) Financial Crisis; (3) Foreign Trade Re¬
cession; (4) Consumer Durable Goods Recession; (5) Invest¬
ment Cycle; and (6) Housing Cycle. Says it is not
quite clear

Every now and then a Congressional committee, either a regu¬
larly constituted one or a special investigating group, comes up
with the startling information that our allies are doing business

cal

parable to

so-called Cold War, and

China,

The

activity

in the case of Commu¬

In every instance the headlines scream,
members of Congress voice indignation and

executive

blushes

branch

the

government

instances

some

transporting Red troops,

was

They

1949

some

pro¬

have leveled

pre-

continued

Carlisle

Bargeron

annual

rate

billion

enemy comes,

involved, including
realism that

in the

our own,

our own

eyes

under

leaders feel

they can never explain to the people as a whole and it is some¬
thing they wish would quit coming up. As a matter of plain fact
our own Congress as late as 1948 was having a dickens of a time

stopping the trade between our own government and Russia, not
private business concerns, but government agencies.
-

It is such realism as that in World War II, when British agents
sit with notebook in hand while our Navy bombarded

would

Pacific islands to record the damage we did
ber trees owned by
or

to cocoanut and rub¬

British interests in order to submit

in World War I,

bill,

when certain German munitions plants were

spared.
What

government in its capacity of global leader is now

our

confronted with is the fact that our allies have got to trade with
,

depend upon us completely for support and our pa¬
tience in the matter of support is running short. As for the new
slogan, "trade not aid," it sounds very nice but we simply cannot
replace the market which would be taken away from our allies by
a blocking off of so much of the world as is under the domination
somebody

Thus

of Russia.

our

quar¬

$359 billion in the fourth

market boom,
in

gain in real

both wholesale

prices,

This is

pretty much the situation as regards Asia. The British
And you can bet your boots they will con¬
tinue the trade with the Chinese Communists and that our State

panic.

financial

counts

Foreign Trade

spite of the continued high

tion.

recession

Just what kind

continues

of recession,

if any, is likely to develop is not

out

and

take

needed

replace
facilities,

obsolete

advantage

and

new

processes,

in¬

vestment

for

these

purposes

can

always be postponed. If we are to
a recession, a decline in busi¬
ness investment is likely to be the
most important factor, but no such

have

is yet

in sight.

aggravated,

nomic
in

brought

adverse

Housing

Between 1925 and

eco¬

of.

developments

countries.

other

International

were

90%.

this

decline

was

decline,

anything

approaching

been

Inventory
An
from

inventory recession results
a

general, overly-optimistic

address by Dr. Weimer
at
the
Southeastern
Group Conference,
U. S. Savings and Loan League, Balti¬
more, Md., May 23, 1953.
■"Digest of

declining

trend

since

owing to the stronger position of

early last year, and the financial

Recession

home

position of

building

seems more

come

local

is not

many

foreign countries

satisfactory. It

seems

prob¬

financing institutions. Over¬

able, however, that developments
in

foreign trade

the

aggravate

particular

affecting

are

recession

likely
started

likely to be¬

problem,

and

market, rather than

a cause

nation-wide recession.

and understand it, though they can't explain it to the

the Korean mess as
good wijl but it is a hard-boiled practical proposi¬
They have got to have their trade.

Our State Department

and Mutual Security explainers like to
the trade does not substantially involve strategic materials,
the expert hasn't yet been produced who can draw a line
between what is strategic and what is not. Anything that helps a
nation to survive helps it to wage war.

Insurance Stocks

say

but

is increasingly apparent that Britain

Cold War,

for the

brought to them.

and France have

Our annual

except for the billions of dollars it has

in the position

ours

is in.

country's leading insurance companies is

They would like to forget World War II.

Their governments are not

comparative analysis of

A copy

If asked

by their people what they accomplished with that war they can
they accomplished the prevention of their destruction. Our
government, instead is faced with a growing disillusionment such
as followed World War I.
They are fearful the country will fall
back into "isolationism" if they wipe the slate of World War II

will be

now

;

of the

group

available.

sent to you upon request.

say

clean.

They can't,

But there

as a

our facilities for

specialize in and offer

are

Blyth & Co., Inc.
New York 5, N.

14 Wall Street

Joins du Pont

has

Maine—Lloyd
become

with du Pont, Homsey

(Special to The Financial Chronicle)

associated

& Company

of Boston. Mr. Heldman was with

Coburn

Middlebrook, Incorpo¬

rated for several years.

Martin Inv. Co. Formed

Homsey

(Special to The Financial Chronicle)

Heldman

\
^

result, let go of the Cold War.

increasing indications that as time goes on the
argument in this country as to whether we should "go it alone" in
Asia or continue to abide with our allies, will become academic.
The allies will refuse to go along with us.

PORTLAND,

the

purchase and sale of insurance company stocks.

LINCOLN,
Investment

Neb. —The
Company

formed with offices

Martin

has

been

the Trust

Building to engage in the securi¬
ties business.

San Francisco
Boston

♦

Louisville

Chicago

•

Springfield
•

•

Detroit

Sacramento

•

Los Angeles

Philadelphia
•

Minneapolis

Fresno

•

San

•

Pittsburgh'»

•

Jose

Spokane\
•

Seattle
Cleveland
•

Pasadena

Oakland
•

Portland

•
•

Indianapolis
•

Eureka

San Diego

one

segments

Britain is willing to lend a few troops to

taste

cause

in
this country,
but they were this degree of slump in the home
quite clear. In years past, we have
shattered
by disastrous interna¬ building industry now would cer¬
experienced at least six major
tainly have serious repercussions
tional developments.
types of depressions, sometimes
on
the
whole
economy.
Home
There is some evidence that a
singly, sometimes in combination.
building now should be somewhat
The depression of the 1930's was
foreign tirade recession may be in less subject to these extreme cycli¬
a combination of all six.
the making. U. S. exports have cal
changes,
however, in
part

public.
the price of our
tion with them.

result of the general business

or a

indications of recovery

1932, the rate
building declined
While .it is not clear

house

new

whether

developments contributed heavily
to the recession of 1924. In 1931,
there

Cycle

on,

political

VI '

Recession

are

Department and Mutual Security officials will know the trade is
going

new

products

decline

level of economic activity, the pos¬

will

and

our

are

savings and loan asso¬
is
a
protection against

Some recessions

favored topic of conversa¬

ment
worn

Ill

sibly result in strikes.

accentuated in the last two
by
the
accelerated
tax
amortization program. There are
some
evidences
of
impending
overcapacity, or at least adequacy
of capacity at current levels of de¬
mand. While new plant and equip¬

ex¬

ciations

negotiations now in process in
several major industries may pos¬

sibility

institutions

the most

are

psychological factors.
an
extraordinarily

had

war,

finan¬

credit

have

years

loss of customer confidence.

stoppages have occurred to upset
economic
equilibrium,
although

to be

high level of investment since the

strong position. Furthermore, the
insurance of bank deposits and ac¬

be the
normal minimum. No major work

Although

pansion has been substantial,

many

global leadership than they are now.

need the China market.

cial

well below the two million mark

serious

indicate the likelihood of

production is holding

steadily at over 240% of the 19371939 average.
Employment con¬
tinues high and unemployment
j.is
considered

There is presently no evidence to

the average, have

likely to result
panic which may
depression.

are

financial

bring

and

declined slightly.
Industrial

of extraordinary spec¬
activity, accompanied by
unwise, large extensions of bank
credit, and frequently by a stock

increases represent a
retail

Cycle

expenditures,
expenditures
for
new
types

sensitive

ulative

quarter of last year. These small

since

all

business

Periods

Weimer

$361 billion in the first

output

Investment
Of

plant and equipment

Arthur

goods from

ap¬

Financial Crisis

pared

war.

15.5 in 1950 to 10.9 in 1952.

the

195 3,

ter and

durable

consumer

future.

quar¬

com

trade between Western and Eastern Europe is

continuing and it may be expected steadily to increase, and as it
increases we will find France and Britain less inclined to follow

mediate

very

dicated ,by the decline in the per¬

prospect in the im¬

$363
in

second

to be

been

centage of disposable income spent

off, while sales have
rise. An inventory

pear

have

Some saturation of markets is in¬

created

recession, therefore, does not

durables

sumer

liminar ily

with

"sat¬

high ever since the end of the

inventory re¬
cession might be in the making.
This spring, however, inventories

all

become

Today, there is some possibility
type of recession develop¬
ing. Production and sales of con¬

rapid rise

inventories
that

markets

of this

inventory

estimated

even

without, I suspect, too much success.
>
Incidentally, and solely as a matter of; side interest, these
charges were based on an investigation made by Senator John
Kennedy's brother, a member of the McCarthy committee staff.
The Kennedy family, whose head, Joseph P. Kennedy, served as
Ambassador to Great Britain, is not noted for its love of that
country. The elder Kennedy, who was serving when World War II
began, sought by might and main to dissuade the British, repeat¬
edly telling them they could not count on our coming in.
But insofar as young Kennedy's investigation of British-Com¬
munist trade is concerned, there is no reason to doubt that he had
his facts substantially in hand.

But it is

fears

duced) is

matters away,

the head of realism.

business

and

ter

Che leaders of the governments

(total

was an

Last fall the

services

time when the relations between
unusually strained and they caused

with the

adjustment

recession.

considerable embarrassment to the respective governments. This
time the British Ambassador to Washington sought to explain

This business of trading

further

and

urated."

tion

areas

goods

Britain and this country were

inven¬

business

to sales, and an
inventory
readjustment period sets in. The

some

value

little if any dif¬

however, at

came,

and

Gross national

ferent from the exposures we have had in the

past.

high

product

being gradually obtained. Don't talk about
it; don't rock the boat.
The recent McCarthy charges of British
ships hauling strategic materials to the Chi¬

the
year,

increases.

are

Communists,

maintaining

purchase

wants

tories, usually accompanied by
rising prices. Inventories eventu¬
ally become excessive in propor¬

erate

red, and seeks to explain
that it is all a very delicate matter which is
the subject of constant discussion with the
culpable governments and Satisfactory results

nese

accumulation

Business

showing mod¬

crimson

now

bright.

long-life goods,
which can be
postponed. During a period of
boom psychology,, consumers
satisfy
their
most
immediate
the

business outlook

run

levels reached late last

cut.

the

short

continues

since the Korean War broke

ever

inventories"

As concerns

since the beginning of the

ever

what combination of them is

inventory recession,

except that it involves "consumer

likely to develop.

have been getting these periodi¬

surprises

nist

the Iron Curtain countries.

what kind of recession,

Goods

Recession

Dean Weimer lists

By CARLISLE BARGERON

the latter

Durable

Consumer

tory Recession;

with Communist China

to be the

By ARTHUR M. WEIMER*
Dean, School of Business, Indiana University

Ahead

The Commercial and Financial Chronicle...

(2414)

back but

Needed: A Reaffirmation of

bill

branch

Functions of Financial Institutions

the

18th

Superintendent

the

and commercial banks.

Well, what kind of

has it

a year

year

usual legislative action;
it has been

un¬

secondly,

has

which
seen

many

changes

destiny.
is

this:

fore

mutual

Watson

its

"friction,"

history. It is gratify¬
to

es¬

the

Branch

same

table to find

see

Committee then appointed

The

committee

smaller

with

differences
of the
to
to

discuss

the

subcommittee

savings banks. Again it was

arrive at

amicable solution.

The Association has only one
The
Branch
Policy
Committee
•objective and that is a strong, undertook
a
two-year
study,
sound, healthy banking system,
county by county, on the adequacy
which operates in an environment
of savings facilities.
conducive to good business prac¬
Despite all of this effort, no
tice, with opportunity to freely

and

grow

side

prosper

"by side with institutions and
ganizations of our peers. It is
endeavor
dom

that

safeguard

or¬

solution

possible,
banks'

the

Association

•An
the

was

address

57th

has

created

Annual

axe

simply

determination

panding

branch

Committee

S. S.

The

seek

ex¬

privileges.

like¬

Session

Muench

and

remarkable

board

"Queen of Bermuda," May

the

Leo

job,

1953

now

1953.

with

growth

banking

activity,

with

tutions

their

progressed.

were

The

has

been

five times

Diebold

stitution
activities

speak

and

practices

services
anu

tion

the

and.

Size

between

our.

commercial

the

own.

for

Yes,

the

savings

can

bank

has almost ceased to be

question

Oniy

have

sociation's

all

$2,325,000

Issue

Missouri Pacific Railroad

all

dwell

They

speak

full

savings

sionist

■

" ' ' ■'
'
-V
V
payment oj par value and dividends by endorsement by the
'

'■

■

unconditionally

as to

Trustee oj the property oj Missouri
Pacific Railroad Company,

Yield

Trustee but

not

individudlly.

Maturity

Yield

1954

3.00%

1959

3.55%

1964

3.775%

Maturity

Yield

that

all

segments of

paying their fair

are

The

movement

for

Regrettable

have had this parting of the ways.
The
"fight" we have just gone

through

was

the

mercial

regrettable and

very

savings banks and
banks,

and

need is

each.

gether

reason

why

now,

the

said

for

you.

lived

There

future.

Let's

Your

support,

Association

can't

We must be prepared. In this twi¬

for

you

alone.

You

must

rest

period

laurels.

our

between

legislative

sessions,
we
must
mend
our
fences. Don't wait until January of

1966

3.80

legislators.

3.40

1962

3.70

1967

3.80

1958

3.50

1963

3.75

1968

3.80

„the

Issuance and sale

Renew

contacts

made.

us.

This

never

talize

where

WM. E. POLLOCK A

•

THE

counts.

in
It

already
for

unity of
We

With

must

the

final
here

county

revi¬

setup,"
level,

showdown

that

McMASTER HUTCHINSON A CO.

Group

our

the

with

to The

Glore,

the

Financial

Forgan

Salle

New

job
par¬

Chronicle)

Co.,

Street,

York

135

members

and

Midwest

Stock
was

Exchanges. Mr. McGregor
previously with F. S. Yantis

Co., Inc. and prior thereto

in the

was

trading department of Hul-

burd, Warren & Chandler.

With Glas & Co..
(Special

NEW

Group, from the
Baldwin
county, and here,
we

the

com¬

the

gentlemen, is where

strength.

reach

munication must be from the As¬
sociation

its

CHICAGO, 111.—William J. Mc¬
Gregor, Jr. has become associated

strength.
effective channel for

Glore, Forgan & Co.

(Special

South

purpose

organizational
the

each

now.

into the grass roots—here lies

ILLINOIS COMPANY

The

CO., INC.

matter

before.

our

continue

have

you

We must have
aS

and

The time to act

particularly

A COMPANY

ticipate.

not

1957

FREEMAN

serve

individually

collectively,

'54. Get acquainted now with
your

[

to¬

hope

Association.

your

before, it is designed to

The

3.80

to¬

live

cannot

the

have

past.

and

Let's

•

1965

A CO.
h

re¬

be worked out.

can

This

the

gether in
it

out

3.60

and func¬

purpose

of each type of institution,
spelling out the sphere of opera¬

affect

3.65

HALSEY, STUART A CO. Inc.

com¬

financial

tion

expan¬

institution

all

institutions to operate in complete

sub¬

not

may

for

room

tnem-

banks'

individual

Fight Is

truly sorry that the sav¬
ings banks and commercial banks
am

affirmation

1961

are

1960

of the Certificates are subject to authorization by the Interstate Commerce Commission.
The Offering Circular
may be obtained in any state in which this announcement is circulated from
only
such of the
undersigned and other dealers as may lawfully offer these securities in such state.

our

budget, when the

harmony. What

3.30

May 28, 1953

When

profits tax is being
and when individuals

country

neces¬

3.15

♦

it.

share of the tax load.

1955

R. W. PRESSPRICH

have

excess

see

our

—

1956

source

additional

light

Maturity

for

previously
financial
institu¬

facts

the future.

need

the

—

To be guaranteed

government

our

but gentlemen, it is writ
legislative walls
Look

1968, inclusive

third

must forego tax
reduction, cer¬
tainly attention should be directed

Subsidized Savings

impact

sidized

your

his¬

recognized by

available

you

continued,

tion

(Philadelphia Plan)
$155,000 annually June 15, 1954

mature

the

this

nation's

the

Banks

contains. The

The Impact of

Equipment Trust Certificates

with

every

unbalanced

local

Survival

Country

there.

The

that

the

;

unfair

selves.

Equipment Trust, Series YV

certainly doesn't help the banking
As¬ industry in the public's eye. This
booklet— is a big state. There is certainly

received

Bank

for

truisms

general

country is in mortal danger from

sup¬

New York State." It is not
sary

3%% Serial

and

ve^y

the

documented

"Independent
The

the

was

conflict

war

There

to hold

and

interests.

your

You

tions."

Only

tne

cooperation

collectively

serve

part of

one

of the 1950-1951 Council

tax-exempted

level has made it possible for the
Association to safeguard and pre¬

matter

your

Yes, the facts do speak

themselves.

acting

Federal income requires consider¬

membership
us

under

ation of the taxation of

port rendered by individual banks

Savings

Bank Issue

united

has it been possible for

wonderful

The

all,

am¬

themselves.

passed

quote you

time

seeking

frugal
management,
determination, energetic and
vigorous activity by the Associa¬

there

Legis-. banks."

did a
though op¬

world

many

for

equal

tory, with the dangers of

through

can

definitions

institutions

object to

competition

Administration

critical

and that is all inclusive. The facts

uniformity in thrift in¬
powers

members, has
annual budget of only $130,000,

at.

only then

clear-cut

you

not

is,

operating

resolution

consensus

bitious program, your Association,
the New York State Bankers, with

ness."

arrived

not

"WHEREAS

their

they mean business.
Against
this
staggering,

phases of the other fellow's busi¬

and

more?

say

community

it.

program

further

the

Council of Administration back in

see,

many of these bank groups
have been permitted to enter into

competing

revenue,

Need

that

"Then

contributing over a
dollars annually
to

association

that

privileges and subsidies.
Mentioning subsidies reminds me

collective aims.

set up as time

result

are

much

welfare.
we

and

1951. Let

half-million

over¬

too

can¬

special

a budget in excess of
$350,Gentlemen, these few insti¬

000.

and

it is

and

basis,

accountable

advertising

fellow

make

personal crusade. I

and

that

Savings Banks Association

statewide

the

are

other

should

competition—that

stock¬

perpetuating.

are

stock¬

customers.

our

the

Certainly

accounts.
no

$200,000. In addition, they have

con¬

operations

let

not

Each

interest

one. \

The

was

business

began to

self

are

it.

cause

collects in annual dues better than

another.

one

thrift

billion

million

seven

Gentlemen, they
to

particular ob¬

institutions

"New rules

and

$12

institutions have

trustees

and

jective in mind. But with the

Association

they
hold
no
annual
meetings of, or give any account¬
ing to their mutual owners. Their

history. A1

erating under severe handicaps.
The savings banks suffered a set¬

25,

savings

tinuous

Dorsey

even

officers,

and

we
must tell our own
story or
against?- suffer by default. We have a
just

Banks

deposits

behalf

city and country

established

might

really

Savings

These

commer¬

big

emphasize

are

com-

of the

do is to culti¬

can

analysis, they

not

hold

Depart¬

banks, state
savings and loans.
"Each type of institution

Mr.

Let's

our
one

members,

well

the

who have the most at stake.

ones

York

holders,

banks,

lap

holders,

for

New

of
So

directors

In the final

represents 130 institutions, which

Federal

Your

Legislation

outcome

lative

Mr. Watson before
Meeting of the New

York State Bankers Association
the

Banking

employees,

said

proposal

staff

our

facing

existence

own

The

and

cooperation

attacking the underlying

banks,

these

the

legislation

What

statement of powers and functions

wise

people

grind.

best

can

tions—state and national
cial

Association,

nature

6rcnl institutions.

things

the

officers

completely

were

challenge

profitable
r

other

the

our

primary

savings

serviced by

The

deemed

was

view

extensively examined the
of the state may be
situation with the result that the
the finest financial in¬
Association
was
charged
with
stitutions in the world.
"studying the matter to death."
the

State

There you have it.

hoped that out of
such cooperative discussion a "re¬

our

this free¬

communities and

our

rational

serious

"We do not intend

abandon

clearly.

served

address:

City

successful."

are

two."

avail. Every effort was made

pose.

compete,

issues

of the friction between the

causes

areas

agreement with the sav¬

ings banks. This was to no avail.

be¬

conference
Ernest

the wonderful
way in which the membership has
pulled together in common pur¬
ing to

ment

fraternity

over-all
philosophy. With this thought in
mind, they sat down around the

The

never

the

interest

the

Committee

Your

solidified

a s

and

urged
that
the
discussions
be
broadened to include all institu¬

employees

State. We will bring it forward
again and again until it is finally

sensi-

some

depend for our live¬

whom

Policy

Association
li

with

overriding
is

lihood.

one

conclusion,

understood

continue

there's

discussion

results

will

scrap

unless

Banks

branch

Mr. Diebold is reported to have

"The

widen

only

banking

•

with

pecially in the eyes of the public,

banking's road
there

the

ment

overlapping

types

many

importance. And it

wish

banking

and function.

power

is that there are

now

institutions

issue with any seg¬

is to take

too

Savings

the

outside

officer,

unaware

vate

ing industry

Friction

would

and

first

reported to have said:

Bank

banks,

many

New

in the world that

Association

your

of public opinion. I
disappointed to find that

executive

York, as well as Chairman of the
Legislative
Committee
-of
the

"Public
No

very

ings

just

behalf, the Associa¬
staff to carry out its direc¬
Wants

molders

was

30,

take the initiative and
through/ We must reach-1
legislators, our educator's, and

our

Unfortunately, all of the sav¬
ings bankers are not of this mind.

"The basic problem of the bank¬

your

The last thing

y e a r

-which

tion's

our

serv¬

institutions

Lyon's proposal. Here is what Mr.

tives.

a
year
of
spirited
activity,
and
third, it has

been

act

March

county should

will

Diebold

tool. Your Council
is designed to

your

thrift

Each

active minute man, a man

On May 12, Robert M. Catharine,
Charles R. piebold,
President of the Savings retiring President of the National
of
Mutual
Banks Association, is reported tci Association
Savings
have
seconded
Superintendent Banks, and President, Dollar Sav¬

Administration

First, it has been

serve

between

ices

who

functions of each type
institution, with clear-cut defi¬

nitions of the activities and

year

been?

have

powers and

scribe to that.

of unusual legislative action and
spirited activity along with greater solidarity among mem¬
bership of New York State Bankers Association. Outlines
controversy over savings banks' branch extensions, and warns
full impact of savings banks' expansionist movement is
highly detrimental to small town banks. Urges banks join
"in crusade" against the movement, and calls for a clarifica¬
tion of operations of each class of banking institution.
reports

to fall down.

than

Mr. Die-

ing should try to achieve agree¬
ment."
Commercial
banks
sub¬

Retiring President, New York State Bankers Association
President, First Westchester National Bank, New Rochelle, N. Y.

Watson

bigger

said in a statement:
"In the coming months all bank¬
Banks,

By ERNEST H. WATSON*

Mr.

question,

bold said, of a restatement of the

during the week of March

was

that. It

with¬

When

drawn

branches.

they will not be diverted
expansionist
plans.

their

from

Thursday, June 4, 1953

are prone

ney

The

Financial

Chronicle)

ORLEANS, La.—John H.
is with Glas &

Building.

Co., Whit¬

(2415)

The Commercial and Financial Chronicle

Number 5226

Volume 177

little

Is Ameiica

Going Bankrupt?

Administration, University of Michigan

bankrupt,

have

Let

the- autumn

1951,

Dr.

such

put

tional argument

which

ments

na¬

examine these four

finds the government types of economic

disasters, and

George Gallup put a problem to a with a huge debt against ,which,,vinquire into the extent, to which
cross section of adult Americans,
there are no corresponding-physiT<: they threaten the nation. ♦
He

people

said,-"Some

United

the

say

cal assets. The intangible asset of

States

tional

defense-,

na¬

aid

weigh

a n

few

f*;

57%

Disagree

minutes,

i '

tional debt. The
Philip Wernette

raised

...

expressing

this

meaning

question

may

point, however,

not

This

the

Government's

The

Is the Federal Government fac¬

ing

the

bankruptcy

income

distinctions must
thing, we are

enough money to pay its bills? In

entitled to ask whether the people

this question is easy. The Federal

important

Government-

the

ereign

entire

It has

what'they meant by
"bankruptcy."
The term "bankruptcy" is not a
It

concept.

Hpht

.large

national,

the

income;

at grave

ply

risk. This method is sim¬
print whatever money is

that

always

Government

assurance

not at all reasexceed the assets, suring to thoughtful people. They
statement sense it immediately wish to know wheth

In the

income

means

that not

enough

money

Yield

Maturity r

3.775%

3.55%

1964

3.15

I960-

3.60

1965

3.30

1961

3.65

1966

3.80

3.40

1962

3.70

1967 *

3.80

3.50

1963

3.75

1968

3.80

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any state in which this announcement is circulated from only
of the undersigned and other dealers as may lawfully offer these securities in such state. ;

The

sttch
'

•*

•

■

* <

'i'

•!'''

HALSEY, STUART & CO. INC.
& CO. 1 BAXTER,

R. W. PRESSPRICH

FREEMAN & COMPANY

WILLIAMS &. CO.

way is, however,

(other than proprie-

torship items)

can

Federal

sense

Yield

Maturity

the

get the money that it needs in this

sheet

balance

Issuance and sale

only

such

lead

being received to pay the bills,

which

■<

■"

HUTCHINSON

McMASTER

WM. E. POLLOCK & CO., INC.

ILLINOIS COMPANY

THE

SON

F. S. YANTIS &

& CO.

CO.

INCORPORATED

might in

Mention

disastrous.

INCORPORATED

not

would

maneuver

inflation

itself

these concepts first

GREGORY

May 28, 1953

this

possibility suggests yet an¬
other meaning for the term "bank¬
The Government's Balance Sheet ruptcy" and this danger, there¬
In any ordinary accounting sense fore, will be considered later on
also.
the Federal Government's balance
Can the Entire Nation Go
sheet would show a condition of
Government.

Turning to the concept of bank¬

of Federal debt held by non-gov-

ernmental agencies. The asset
show

would

ernment

in
but

billion

$24

corporations;

ruptcy

side
gov-

$3,090,000

Bankrupt?

insolvency. The principal liability
item would be some $222 billion

some

applied

entire

the

Wisconsin Central

United States of America, we can
see quickly that it is hardly ap-

plicable in the balance sheet sense
to an entire nation. As a matter of

of this amount represents

loans to

interests which
expected to be repaid.
item

asset

are

be real

would

estate,

would show

than

thou¬

one

offices,
Federal sand billion dollars of physical as¬
buildings, dams, national parks, sets and a negligible amount of
national forests, etc. One can only liabilities. Since almost all of the
guess at the total value of these stocks
and bonds of American
items, but it probably comes to a governmental entities and Amerfew tens of billions of dollars. An- ican corporations are held in the
other
asset
would
be
military United States they are liabilities
bases
and
equipment.
If these to the issuers and assets to the

including

(Philadelphia Plan)
To

To be

at.

many

were

figure

billions,

included

the dollar

market value,

would

the

tens of

they

If, however,
at

cost

total

provided

that

small,

expected to be made
than promissory

payment

was

rather

cash

notes.
.

that

assets

balance sheet showing the
and

liabilities of

the Fed-

eral Government would show the

government to be insolvent.

This, however, would not be
regarded as startling news, worthy
of quick communication to press,
radio, and television. All thought¬
ful

persons

realize that financing

major war is commonly done by
borrowing a large part of the

money,
♦An
the

and, therefore, the end of

address

California

onada,

therefore,
would

Dr.

Bankers

Wernette before
Association, Cor-

Calif., May 19, 1953.

show

trillion

appear,

true

net

United

trouble

States

Dec. 1955
June 1956

3.60

Certificates due

3.70%
3.80
3.90

4-00%

sense,
Issuance and sale
District

United States District Court for the
Offering Circular may be obtained
in which this announcement is circulatedfrom only such of the undersigned

of these Certificates are subject to authorization by the

of Minnesota and the Interstate Commerce Commission. The

in any state

and other dealers

if
nearing
depression, in
as

June 1, 1958 to June 1, 1968—Priced to yield

...

Yield *

Maturity

Dec. 1956
June 1957
Dec. 1957

3.15

experienced

described

Yield

3.30

during the great

Maturity

June 1955

Dec. 1954

depres¬
sion of the 1930's which certainly
could

Yield

3.00%

June 1954

statement

income

Maturity

Dec. 1953

sheet
than

inclusive

guaranteed unconditionally as to payment of principal and dividends by endorsement by the
of the property of Wisconsin Central Railway Company, as Trustee but not individually.

wealth

balance

The
the

$103,000 semi-annually December 1, 1953 to June 1, 1968,

3.40%
3.50

bal-

dollars.

the

not

consolidated

nation to

the

sheet.

ance

the

It is virtually certain, therefore,

They would

holders.

mature

Trustee

would

Equipment Trust Certificates

post

listed

were

Railway

Equipment Trust, Series D

not fact, a consolidated balance sheet
Another for the United States of America

foreign

poverty

may

lawfully offer these securities in such state.

not actually described as

bankruptcy. Such

both financial terms and

mere

affair.

paper

HALSEY, STUART &, CO. INC.

in terms

cf real wealth and real income,

is
a

FREEMAN &. COMPANY

R. W. PRESSPRICH & CO.

genuine and serious matter. This,
then,

still

represents

meaning

the

for

ruptcy"—the

term

occurrence

jor* depression.

This

also be discussed in
We

term

have

seen

another
of

McMASTER HUTCHINSON &.CO.

danger

ma¬

will

that

the

"bankruptcy" has relatively

F. S. YANTIS & CO.
INCORPORATED

moment.
far

MULLANEY, WELLS & COMPANY

"banka

June 1,1953

that
the*

British

nevertheless,

heed never
its bills.

government,

balance sheet sense it means that

Let us apply
to the Federal

twice

and

1958

method of securing money

.,.

f national aeoi, at me
the Napoleonic War, was

1957

other sov¬

any

•

remembering

national

1959

1956

the income statement sense. In the

®
end

indi-

worth

British

$262,000 annually June 15,1954 to 1968, inclusive

3.00%

1955

answer

which is open to the citizenry

used

may

mature

1954

This

the liabilities

It
fftp

Equipment Trust Certificates

Yield

Maiurity

have

needed.

the

out of money to pay

run

also inquire

the

way

Government,

"the country" the Fed¬

Will

sense?

superficial

one

United States of America. We may

guaranteed unconditionally as to payment of par value and dividends by endorsement
by Chicago and North Western Railway Company
•
'

To be

tain

simple

...

com-

cornorations

other'

Both

reduction were rapid; but could be
handled if it were gradual.

Income

Position

statement

eral

—

insurance

securities

the

(Philadelphia Plan)

taken up later on.

today than it was then.
/.In analyzing this question cer¬

meant by

entities

investments.

other

problems would be serious if the

year,

sj^de to the

3 z/\%

word "bankquestion will be

ruptcy."

right, it was and is a serious ques¬
tion, since the country is spending
more
money for these
purposes

For

find

Chicagoi and North Western
Railway Company
Second Equipment Trust of 1953

be damaging the national economy
and, therefore, represents a truer

danger " of
spending itself into
bankruptcy. If the majority was

made.

pay-

holders

the

for

$3,930,000

v-';<

to whether taxation itself may

opinion, the
respondents voted nearly two to
one
that
the
country
was
in

has

Government

Federal

stands behind the value of the na¬

30%, No opin¬
ion
13% (Tot. 100%). Among
those

intangible- asset which is
in a financial sense.
This asset is its ability to tax, and
it
is
this
factor
that
basically

vote:

Agree

important

disagree?"
The

questions

another

agree

you

;the^ national debt, and seem

re-

debt

insup¬

to these

given

The

ruptcy.

billion

another

banks,

national

state and local governments. To national, income;
thes^ holders, the pieces of paper Britain experienced in the followare assets, and to them the inter*
Continued on page 28

burden? 1 Consideration

spending itself
into

will

is'-in

Is it

-down?

portable

coun-'^
that * the":

e rv o

owe

$6 billion of taxes,

by non-Federal
panies

the

people. Can it be repaid? Will it

tries

dang

concerned

are

something

billion out of $265. billion) is held
viduals,

A program

would
involve two difficulties: (1) higher
taxes, in the beginning (but lower
ducing

however, suggests danger to manyv

to¬

other

country

Many V persons

,vv;...

*What of the Federal Debt?

far*out-

of. the: national

size

The

counted

weighing the cost.

is spending so,
much

freedom

require $6

there

But

est is income.

argument. Most of the debt ($222

a war

because
It

and that means

(2) taxation, (3) in¬
(4) depression.;,,

now

tradi-

that the domestic-

burden, because the interest

four

the

national debt is really taxes later on); and (2) the need

ourselves.

our

not

may

with the

glibly

burden

word

These

(1)

aside

ally-held

economic
the

sense.

listed

been

it»threatens

that

This view

possible

for

flation, and

•

believe

progress.

yVe have also seen that

tional debt,

is headed for great

America

States

non-technical,

in the broad concept of this term. Says nation
economic progress, better and richer living.'

even

strict

„

"bankruptcy'! might be used in
*

concludes United States is not going

economic progress,

whole.

disaster

position, along with impact of high taxation

sheet and income

United

four- types

after discussing Federal Government's balance

Dr. Wernette,

the

the Federal Government

the

By J. PHILIP WERNETTE*
Professor of Business

significance

financial sense when applied either

(2416)

The' Commercial and Financial Chronicle... Thursday, June 4, 1953
1

By STANLEY A. NEILSON*

President, New York State Bankers Association

President, Bank of Gowanda, New York

except when
particular
howl always goes up
proposed to eliminate
economy

deavor to the
to

best

of my

ability

best traditions

it begins
interest;
when it
supports

hope the Administration

may

and

and allow interest to firm and the

ings banks.

try is facing a

price of bonds to drop—if neces¬
sary—in order to establish a free

forts to

critical period,

market for money.

Our

and

should

ers

bank¬

in
our
power to
support the
Federal

prices,

the

dollar

well

the
not

vicissitudes,
which
other
countries have suffered, in order
to learn

sta¬

bilize

the

Ad¬

and

bond

course

be necessary for us to go through

infla¬

curb

tion

the

parallel that of
French franc. I hope it will

ministration
to

support

think

could

the

should again have Federal

Reserve

everything

efforts

that there is

inflation.

Stanley A. Neilson

the

profit in

men

agree

some

remarks of Mr. Neilson
being elected Ptesident of the New

""Acceptance
upon

York

State

57th

Association

Bankers

This is

not nil

of the

We commercal bankers

Meeting of the Association
held aboard the S.S. "Queen of Bermuda,"

May 26, 1953, together with
quent address on May 28.

excesses

past.

are

also

facing a critical period, as the sav¬
ings banks have again thrown
down the gauntlet in the matter
of branches.
This to my mind is

the

Annual

of the

his subse¬

offering of these Shares Jor sate, or an offer to buy, or a solicitation of an offer to buy, any oj such Shares.
The offering is made only by the Prospectus.
,

ings

Cash

the

moves

banks

savings

total

^\An°o7 ^l~f~s~~A~ 2»p.0»°00
^
deposits)

expansionist

the

.'VH

Ac\crt~~ZZZ V~

can

t.w?nSc
deposits

9^nn

Time

the

nnn

2,500,000

If this bank lost half of its time

National

Mutual

Savings

Association

33rd

an¬

Cash

$750,000
(20% total deposits)
U. S. Gov't
1,850,000
(49% total deposits)
^

Banks, in Washington, D. C., that
"What we object to very strenu¬
ously is any attempt on the part
of

banks

commercial

the

strict

growth

our

Loans

(40%

re¬

Capital

own

1,500,000
deposits)

total

were

There\w$s also4 ; a limitation of
investments. They were allov^rid
invest

bonds

the

State;

Public Service Company of Indiana, Inc.

also

estate

posits

were

for

4.90% Cumulative Preferred Stock
(Par Value $25 Per Share)
^
,

New

last

deposits

York

real

State.

restricted

De¬

$3,000

In less than
limitations on

person.

one

any

the

in mortgages

years,

have

increased

been

two

Price $25 Per Share
Plus accrued dividends from June 1,1953

namely,

reasons,

lust

for

power

and desire to build

posits

paying

order

evade

de-

Transmission
Issue

Mr.

Permitted

writers

may

be obtained from

only in states in which such underwriters

dealers in securities and in.which the

Prospectus

of the several under-

any

are

qualified to act

at 80%

mortgages

properties

of appraised

v^ilue.
makri loans

modernization

and

for

rehabilitation

mortgages

BIyth & Co., Inc.

■

Eastman, Dillon & Co.

The First Boston Corporation

Glore, Forgan & Co.

invest

anywhere

Hundreds

FHA

within
millions

the
are

invested outside of the State each
year.

Goldman, Sachs & Co.

Harriman Ripley & Co.

Kidder, Peabody & Co.

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

•

have

They

Incorporated

over

lot

their field.

Smith, Barney & C3o.

Stone & Webster Securities Corporation

Union Securities Corporation

A. G. Becker & Co.

White, Weld & Co.

Hemphill, Noyes & Co.

Incorporated

Dean Witter & Co.

A. C. Allyn and

Harris, Hall & Company

(Incorporated)

Company

Incorporated

Central Republic Company

F. S. Moseley & Co.

(Incorporated)

Salomon Bros. & Hutzler

Spencer Trask & Co.

Wood, Struthers & Co.

arine

certainly

fences

enlarge
Apparently Mr. Cath¬

considers

knocked

the

field

sav¬

than

20%.

Blunt Ellis & Simmons

Stroud &

G. II. Walker & Co.

Company

Incorporated

City Securities Corporation

Collett & Company, Inc.

Elworthy & Co.

J, J. B. Billiard & Son
A. M. Kidder & Co.

The Milwaukee Company

Farwell, Chapman & Co.

Indianapolis Bond and Share Corporation

savings

Raffensperger, Hughes & Co., Inc.

F. S. Smithers & Co.

Sutro & Co..„

II. Ilentz & Co.

The Illinois

Irving Lundborg& Company
June 3.1953.

abandon

forward

again and again until
it is finally successful. The public
must be served."

McCormick & Co.

Richard W. Clarke Corporation

Company,,

J. C. Newsome & Co.

Schwabacher & Co.

Mackall & Coe
Sweney,Cartwright&Co.

report without comment only that earlier this

There

blind

riot see."
Will

saying,

Regard this, if

will.

The

"Wall

ported in
tinent

Street

Journal"

April issue

facts, when

re-

some per-

considered

the light of the missionary
in thrift and public service
fessed by the savings banks.

role
pro-

The
questioned whether
savings are "thick enough to absorb recession" and found that
newspaper

reveal

not

thrift

how

money

The article continued:

"Relatively few (savings) banks
have
of

breakdowns

accounts

brackets.

But

the number

different

size

big Bowery Savirigs

Bank in New York City, which
has over $1,000,000,000 in deposits,

furnishes this report for August,
1952, tending to back the theory
»that the hulk of savings

are

held

e greatest

individual accounts

lesa ^an $500-some46%.
m

^es?, than

5% °f tofaJ Bowery deposits, In
contrast, the about 32% ofacc?ur\ts
?2,000 or more held
about 82% of total deposits.'
thq

recent,, legislative

the savings banks, while exces??ve> had a salutary effect m that
}bey Provoked a close examina-

tlon of the slow but steady encroachment of savings banks on
commercial banking during recent
years; B was then that the commercial banks realized that they
which they had retreated through
the

month the newspaper, "The American Banker," announced that the

vears

■

"There

are

those who will

the

discovered that
the defeat of the legislative proPosals showing favoritism to savm*s banks depended on teamwork
,was

among our members
Their reg)onse was effective Each memhereof our team made a distinct
is to be devoted to courting public contribution.
The march of savfavor, with the view of inculcat- m^s ba?ks to still greater self-

York

press

has

State

$325,000

set

appropriated
intensive

relations effort.

The money

ing the people with the savings

aggrandizement, under the cover-

banks' definition of their

in§ ba?.nar of the public interest,

own

im-

portance to the general welfare,
This leads to

question raised
members as to

.was halted.
Now unfortunately, the savings
banks

are

serving

notice

that

there is nothing final in these resuits. These single-minded savings bankers pose the ultimatum

crusade which will not cease until

that they

the branch bank goal they seek,

banks
panded branch

the proposal for branch legislation
in New York State. We will bring

none

Newhard, Cook & Co.

going statement,

achieve
powers

the

ex-

they seek.
com-

promise with great emphasis.
And

let

not forget

the

war

chest of $325,000, to be spent by
the savings banks in a press cam-

paign designed to
ish

Kiser, Cohn & Shumaker, Inc.

As to the accuracy of the fore-

He has slammed the door of

"We do not intend

the

must stand fast at the point to

and

savings

the

banks want them all?
He also stated:

Bacon, Whipple & Co.

promotional

our

by some of our
ings banks as infinite.
whether there is any room for
Savings banks already hold over
70% of the time deposits of the compromise. Clearly, Mr. CathState and commercial banks hold arine has declared an unyielding
less

expansionist role.
you

During

Savings Bank Association of New

of real estate.

Authorized

count

efforts."

Permitted

legally be distributed.

may

funds.

residential

certain

Copies of the Prospectus

dollar

favors

terms

session in Albany, the demands of

Catharine also stated:

life insurance.

broad public good in their present

Federal income tax.

ferred stocks.

little

"As an
industry, we are not
spending nearly as much propertionately as the commercial banks
city where main office is located.
or
the Federal savings and loan
Many
broadened
investment
associations.
It is highly imporpowers even to permission to in¬
tant that we spend enough to do
vestment
in
common
and
pre¬
an adequate job and make every
allowed

been

legislative

spread."

$5,000, $7,500, $10,000.
Branches have

Savings banks are prospering
almost solely through special

opinion the statement"™ l<tJge
that the public must be served as numbej
la

en-

"official statistics look fat, but do

the reason that the savings banks
Government, State of New York, want more branches is a smoke
and municipalities in New York screen.
I believe there are only

600,000 Shares

spirit of competitive free
terprise.
can

1,250,000

deposits—
Time deposits

organized
In most country banks time deas
philanthropic institutions de¬
signed to foster the habit of sav¬ posits are much higher than demand deposits and the reduction
ings by low income groups in our
State. The emphasis was on safety of loans would be greater.
In any case, such reduction of
not high interest return. For this
reason
they were given a priv¬ loans would be in the nature of
ileged
status,
namely
freedom a serious depression in that comfrom most taxation and exemp¬ munity.
Would
that serve
the
tion from
reserve
requirements. public?
"
banks

Savings

banks, while efficiserving
the
community,

$450,000
2,500,000

—

Demand

field."

And

commercial

There

Catharine, President of the
deposits in order to maintain the
Dollar Savings Bank of the City
same
percentages, it would have
of New York, told 900 savings
to cut its loans 25%.
executives

precepts of sound banking.

immunity in large part from taxes.

conference

public. The liberality of their in-

privilege,

deposits)

r'aniif?

longer be seasonal, geared only
to legislative sessions. They must
be a year-round activity.
As recently as May 11, Robert
no

risk—capital, not depositors' funds, are striving to maintain their place in the efficient

ently
operate in the traditional Ameri-

bank:

$1,000,000
deposits)

______

(20%

protect the traditional and

against

to pay the salaries
from which most sav-

developed?

are

vate—or

which terest rates is limited only by the

and

An average country

legal functions of the commercial
banks

operations

them

enable

ef¬

bank

I have confidence that

not

Association's

the

their

and wages

There now can be no

that

doubt

nual

with the Secretary of the Treasury, George
proposal of some twenty Demo¬ Humphrey, and W. Randolph Bur¬
cratic Congressmen that the Fed¬ gess,
Deputy
Secretary
of
the
eral Reserve again support Gov¬ Treasury, have the judgment nec¬
ernment Bonds at par. Apparently essary to properly control their
everyone
is in favor of a free actions in their endeavor to curb
dollar.

agriculture
for

handicap on the commercial banks,
The issue is clearly drawn:
Commercial banks, using pri-

and constructive banking system
public be served if which has been created in this
and
small
business State for the benefit of the entire

the

cannot obtain the loans necessary

recent days by

Coun¬

ciation.

Will

relations has been dic¬
the sav¬

press

tated

be able to withstand the pressure

our

mands
and
provide legally required reserves, to say nothing of
adequate secondary reserves.

stepped-up program of public

our

inadequate to meet^ loan de-

are

to from special privilege.
A
$
*
t,••
is
The advisability of continuing

ex-

deposits. Obdemand deposits

viously, private

carry out the program which the
Association may see fit to adopt.
We must protect free enterprise

Asso¬

of us to put Lis
wheel and help

the

shoulder

subsidies.

cut

uphold the

his

country banks loans

many

ceed private demand

each and everyone

banks, especially in small communities.
affect

counties.

northern

curb inflation and stabilize

Upholds a "free market for money." Views fur¬
ther savings bank branch extension as damaging to local

a great honor which
have bestowed upon me to¬
day, and I pledge that I will en¬

from the largest in New
York City to the smallest in the
State,

the dollar.

It is indeed

the loans of many of
the smaller city and country com-

the

bank

commercial

every

Newly elected head of New York State Bankers Association
calls on bankers to do everything in their power to support

you

because of unreasonable tax difto
make
loans
and
eventually
ferential, as well as the statutory
reserve requirements and regulahandle checking accounts. As Em¬ mercial banks?
Our
met
Finucane said at our Mid¬
report shows that in 10 tory
restrictions
placed
upon
winter meeting in January, "our counties in the State, loans ex- them. Meanwhile, each new legisceed private demand deposits and
backs are to the wall." Any fur¬
lative show of favoritism to the
ther concessions may well affect in 42 counties were 60% to 100%. savings
banks
imposes a
new

Support Inflation Curbs!

■'

•

curtailing

of demands

the forerunner

only

efforts of the Administration

interests.

press

their selfnot

pre-

pared to say just how much

press

are

or public relations that sum will
buy, but there is no doubt that it

are

Further, it is

determined to win

matter of record

that the Superintendent of Banks
is predisposed to indulge the sav-

ings bankers in their demands,
You may think I am an aiarmist, but consider what has already
happened in our State. Savings

banks, at the moment, seek much
than their principal goal,
greater branch banking privileges,
(The right to hold stock in cornmercial banks, which could lead
to control of commercial banking,
and personal loan powers, for inmore

public be served by is a formidable sum.
destroying smaller commercial
The facts" involved are self-evibanks throughout the State and
dent.
Commercial banks in the
depriving communities of, the smaller cities and villages already stance.) Evidence is widespread
many
services which they; now are
unable to meet the interest- that we must meet the challenge
render?
■
' :
*
\
.
rate competition from branch of- both to ourselves and to the. ecoWill the public be served by fices of the mutual savirigs: brinks nomic welfare of our communities.
.

Volume 177

Number 5226

Commercial

banks

continuing
which

ures

must

meas¬

essential

are

and that it

develop

precautionary

the

Chief Factors in Business Outlook

well-being of commercial bank¬
ing. Today we find ourselves in
'an
increasingly competitive — if
not

antagonistic—atmosphere,

unreasonable
commercial

banking functions.

To meet this
sociation

has

defensive

Dean Jacoby,
terminated

and

press

lax

sharp reduction in total governmental

public

When

<Iic.

trie

con-

series

Informative

Bui-

balance of

protective

our

program for the commercial banks
and

Generally, sight will not be lost
of the current actions of the

banks,

mgs

yzed

which will

the

light

sav-

anal-

both

their

past actions and statements. Many
of these are
contradictory. By the
of

use

facts, our bulletins will
highlight these inconsistencies.
Of

such

course,

this

will

and

cost

program

and

money,

must

means

nance

found

But

most
as

importantly

fi¬

ours

pro¬

essential to private c incrHnvatC
enterprise in commercial banking. We
gram,
,

intend to tell the story of the
publie
service performed so
effec-

lively by commercial banks.
for

Sav-

banks, the one-time Societies

mgs

that

the

Prevention of Pauperism
grown
to
unconscionable

1953

expenditure

would average
into

out

fairiv

reduction.

nros-

investment in

side-

Neil n. Jacuoy

prices,

business

whether

features which dampen risk-taking and reduce business invest-

taxes,
l€vel

minor
yet

relation-

3
-

spending

ing-off in home construction un-

der 1952, increasingly severe ir»\x7pr
com,
petl.tlon
Mv
business profits afte
•
y
view was that, w'hiSfoss national production fo
g
be a few Percentage points over
1952> at the end of 1953 we wer.e
.

.nocc

shrink-

regular session of the
{ State Legislature. We must pre-

experience

expanding

skeptical of
present business

bolster

•

serve our

position;

the savings

;

banks

continue

their endeavors to encroach

7/
'

commercial

that

banking,

be taxed

the same basis that they are,
failing that, they be taxed on

upon

-and

fne

•

same

basis that

are.

scale. The support

the present

this«establishment
our

time deposits

orTour time>deDos?ts'matC^y
Pretty tough

longer

ivi

deficit. I do not

during

1954

may

much more

inflation..

of business investment in the most

than is

plants and equipment.

modern

Lilley & Go. New

forecast this

now

•7s
u
price inflation » un.mnauvn has dis-

Because

Direct Phone to N. Y.
Lilley & Co., Packard Building,

Philadelphia, Pa., members of the
pWiadelphia_Baltimore Stock Ex-

presently considered probable.
appeared as a major motivation for
>
One problem is that an increas- production and employment, it is change, announce that their dimg fraction of business invest- necessary to replace it with other rect telephone from New York to
~

...

•

ment apparently is predicated on
an effort by management to increase the firm's share of the

industry market. This is bound to

incentives.
Dresent

Pax

Every

features

involved

system which dampen riskand incentives to invest-

ment. One place to

This is

not an

Philadelphia has been changed to
panai

June

After

4045

all

&-4045. Alter June 1, all
deliveries> confirmations and com-

munications should be addressed

begin is with to the Philadelphia office,

offerinr of these Shares for sale, or an offer to buy, or a solicitation of an
The offerini is made only by the Prospectus.^1

offer to buy, any of such Shares,
>

472,301 Shares

of Indiana, Inc.

Public Service Comply

Common Stock

;/v

':7.7/

-^(Without P*rV«lue)_

•

„■

...

V "

busi-

expenditure for plant and

ness*

for

taking

' This brings me to the financial

considerations

should
removing
our
Federal

avenue

expiored

nQW

VV/ Monetary Considerations

Rights, evidenced by Subscription Warrants, to subscribe for these shares at
share have been issued by the Company to holders of its Common
June 2, 1953, which rights expire June 17, 1953, as more fully
set forth in the Prospectus.

$31.50 per

•Stock of record

Federal monetary and fiscal policies. A high degree of business

business

likely to be terminated by a sharp
reductlon in total governmental

and

fall off appropriate policies.

industrial facilities under liquidity at the end of World War
nor, given present II, and
large profits thereafter,

further price

effort to

spending

such

mind

have

features as accelerated depreciation, reduction of the double taxation of dividend income, and a
host of other measures. Our ultimate national security rests on our
pre-eminent industrial productive
capacity. We will only keep this
pre-eminence in the race with
Russia by policies which encourage
technological advance, research, and a sustained high level

situation; I merely point to it as
plans for plant and equipment a possibility for which our Federal
outlays. I fear that the volume of government should be ready with

The several Underwriters

draft;

°ur Present Prosperity is un-

competition,

the

goods, even if this
running a large Federal

means

equipment. These lead naturally
large military establishment to a discussion of the effects of

forced

for

any

i wb*?b we Paid, taxes, does it pose a threat of have facilitated the financing of

JuC0-mf

plus the interest

•-

ing a

puts

In my bank last year, the Fed-

rates. The

tinue at about current

propose

demand that

measurable future; yet there will not be all-out
war. Defense spending
will con-

on American economy has, in a sense,
grown up to the task of maintain-

high ment.

(over 4 millions) as
a
general business

consumer

markets

the

reduce

Federal

employment—all

tion will cut taxes in

diminish

the

recession, the present Administra-

at the latest

result

attempt

balance

proportions

likely to be on an econo™lc prevent the expectations of all
proportions, but they shall not en- down grade than on an upswing firms from being realized
For
gage us in a legislative diversion
Events of the past five months example, if Ford, General Motors,
without our telling the people of have not caused me to- change and Chrysler each expand their
the
great
service
commercial these views. The most probable plant facilities in the expectation
banks perform.
*
'
course of business during the bal- of capturing a larger percentage
We will put our cards—along ance of 1953 is sidewise.-As the of the auto market—as they now
with
our
record—on
the
table, year wears on; there will prob- appear to be doing—some of these
and let the/public judge the merits ably be a perceptible increase in investment Outlays are bound to
of our position. We have the sat- inventories, and a small rise in be unrewarding. The
result is that
isfaction of knowing that the val- unemployment. Recent events'the plant and equipment outlays
idity of our position—and our confirm earlier guesses that in- of the subsequent' year will be
service-to the public—was upheld ternational
tensions
will
not sharply reduced.
'
have

;

the1

time—can succeed. All of

same

not

should
be
begun
imwith the focus of aton
the. elimination
of
_

system

mediately,
tention

plant and equipment, some fall- such expenditure
....

the Eisenhower Administration ia
M1C
^locllIlwvvcl
lulwwtIvwl4 is

pro-

our

Hence, I

the realization of

moderate

decline

stable

has been

far

market.

move¬

ment of

only
have

ing market. All of

wise

personal and corporate income tax
payments were taken into account,
a revision of our Federal tax

consumer

The basic economic issue before

two

con-

expenditure and on normal

ship between realized and planned

*
perous y ear'
might ex¬
pect

presage

But

had experience with the

nprft„;

and

terms

sumer

repercusthe tax on

of business and

volume

the

consequent

costs

the

after

sions of the removal of

and equipment expenditures are who believe in a
free, prosperous,
becoming scarcer, more costly, and and
stable
economy
earnestly
harder to get. 1 am aware that the
hope that it will succeed. Yet, we
Department of Commerce and the should recognize that it could fail,
McGraw-Hill surveys of business We
may be certain that if unplans for plant and equipment employment should grow to large

pre-

although

government,

and

i0ss

re-

credit.

expansability. Secondly,
financing plant

years.

spending

stringent

funds available for

1945

almost

spending

June

before

has further
are giving evidence of a lack of budget, and to maintain

1949—for

and

constructive

during

brake

monetary

so-called excess profits,
at all clear that the
expiration of this tax
30 next would entail any
revenue
to the Federal

not

scheduled

defla-

on our econ-

necessary

the higher

upon

ducer and durable consumer goods

interruptions

ways

it by our members.

planned

which

short

but

dieted

the communities they serve,

the long

end

—

letins, which you are now receiving. These bulletins will continue
for the

mark the

i,WaS planAned .by inflationary boom
your Associalasted
with

put its first defensive effort

would

banks,

savings

tion

that

the

consumer

convinced

important

may

investment

expen¬

relations, along with its
studies to help improve commerSpeaking early last January, I will not be maintained for
cial.banking's services to the pub- ventured the opinion that 1953 reasons: First* sales of many

the tax

long, in order to check the decline

asserting present prosperity is unlikely to be
a

highly

omy.

diture, sees greatest threat in an impending decline in busi¬
ness expenditure on plant and
equipment and changes in Fed¬
eral monetary policies. Calls for revision in Federal tax system.

situation, your As¬
been developing a

campaign of

for the

necessary

tionary repercussions

University of California at Los Angeles

have

By NEIL H. JACOBY*

encroachments

was

present Administration to apply it
when it did. Yet, it will continue

Dean, College of Business Administration,

savings institutions attempt their

(2417)

The Commercial and Financial Chronicle

...

have agreed, subject to certain

conditions, to purchase
period, may oiler

unsubscribed shares and, during and after the subscription
shares of Common Stock as set

forth in the Prospectus.

equipment.

plantand

However, business as a whole has

Copies of the Prospectus may be obtained from any of the several under¬
writers only in slates in which such underwriters are qualified to act as

become increasingly less liquid, as

dealers in securities and in which the Prospectus may legally be distributed.
well as less profitable, during the
expenditure —Federal, state, and Past two years. There has been a
As
previously/stated^ in a large
New York City savings bank, 32% locaL An expansion in state and shift from internal financing of
,/.Blyfh & Co., Inc. - - •/.
'
of- the depositor owLd 82% of local outlays will probably offset Pjant expansion by a plough-back
-/the deposits
Obviously many of a £°od P31* of any decline in Fed- of profits to external financing Eastman, Dillon & Co. The First Boston Corporation Glore, Forgan & Co.
those
deposits are investments, eral spending. The most imminent via term loans from commercial
Ilarriman Ripley & Co.
Kidder, Peabody & Co,
'not savings. And some of the sav- threat to prosperity comes from banks and: insurance
Incorporated
companies Goldman, Sachs & Co.
Merrill Lynch, Pierce, Fenner & Beane
ings banks are advertising how a an impending decline in business and sales of stocks and bonds m
Brothers
r>
man
and wife can deposit up to: expenditure on plant and equip- tfie securities maTkets^ The
^asy
;
Stone & Webster Securities Corporation
$40,000.^-- "
J
:'ment. Closely tied in with this money" j>ohcy of the Truman Ad- Smith, Barney & Co.
in
Federal binistration made this shift easy
ration -V White, Weld & Co.
i
Dean Witter & Co.
•'
the 5-yard line this year; are we monetary policies. I wish to com-—just as it fed the inflation
A. C. Aliyn and Company
Hemphill, Noyes & Co.
•Incorporated
'
i'going to kick out and again go on ment briefly on these two ele- prices. During the past year or so
G. Becker & Co.
Salomon Bros. & Ilutzler
going to meats; to the eednomic
lulAljlLv

•

...

„

twtlook;:^^^^ raone^'andHs- CentiSR^^bllc Company

■

start

carrying the ball?

Outlays

S4*"-"-- tryr'"***

•

Joins Draper^ Sears

Day

Mass

connected

now-

Sears

Francis 1

It is well known that business
outlays on plant and equipment

have

with

Co., 53 State
/..Street, members of the New York
Draper,

and Boston Stock

ning

H. L. Robbins Adds

World

ness

mi,m

Pearl Street.

War

II.

Renyx, Field

(Special to Ths . Financial Chronicle)

NEW

w
:

ORLEANS, La.—Leonard

Walle is with Henyx, Field &

Co., Inc. .1.:/

Apparently,

capital of American busi¬

has

risen

about

was

years

15%

since

»«•1929
ago in 1929.

historical

.standards

facilities

are

not

large. Yet the hot

With

boom

cal- policies. ;The

our

address

Dean

Jacoby

before

National Association of Purchasinf

fijff
'May 26, 1953.

SSfc?"Sl

Wood, Struthers & Co.^

Harris, Hall & Company

'"v.

„

(Incorporated)

&Co.

' Brush, Slocumb A Co; Inc.

G. H. Walker A Co.

iBC^por.ted;

William R. Staats

^esu1^ naf Deen a snarp rise

;

Blunt Ellis & Simmons

Bacon, Whipple & Co. J Bateman,

„

innitira a-Son

^ lntereS^ rate?» and#a curb
City Securities Corporation Farweli, Chapman & Co. J. J. B. Hilliard A Son
Indianapolis Bond and Share Corporation
pr;ces of corporate Hill Richards & Co.
stocks.. Both stock money and
bond
Kiser, Cohn 3c Shumaker, Inc.
Lester, Ryons 3c Co.
money
has become more A. M. Kidder & Co.
costly
to

get.

put
as

-and equipment spending probably >
•Aw

Tra^TaTco.

Stroud A Company
.

businesses

This has

and

also

harder
true

been

iias anw o«n ™

By o£ resident,al mortgage funds and
consumer credit, A brake has been

of plant

spencer

Elchler&C«;
trality. Monejc^ates are being al- Elworthy & Co. > The Milwaukee Company

plant

dangerously
pace

long-continued

^deix^eplaeediby a^policy'of ^neu^
P6®1?^ repiacea py a policy oi neu

1946. Today it is no greater than
it

with H. L. Robbins & Co., Inc., 40

inflationary

capita amount of physi-

per

cal fixed

(Special to Thb Financial Chronicle)

record-breaking

of-the

since

Exchanges.

¥^""

been

levels since 1946. They have
stituted an important underpin-

the

WORrP4TO

Plant, and Equipment

(Speeici to Tire Financial Chronicle^

BOSTON

F. S. Moseley &Co.

home construction as well

business investment.

Nqw j.believe {hat the

mone.

McCormick 3c Co.

Collett3cCompany,Inc.
Mackall & Coe

long time ago as the most

effective

curb

price inflation,

Sutro 3c Co.

H.Ifentz3cCo.

J. C. Newsome 3c Co.

Shuman, Agnew 3c Co. *•
June 4,1953.
~

Schwabacher 3c Co.

Newhard, Cook 3c Co.

Irving Lundborg 3c Company

tary brake should have been ap¬

plied

F. S. Smithers 3c Co.

FirstXalifornia Company
Richard W. Clarke Corporation

I looker 3c Fay

The IllinoisCompany

Raffensperger, Hughes
Sweney, Cartwright

3c Co., Inc.

3c Co.

■■

The Commercial and Financial Chronicle

(2418)

very pure, the contamination be¬ ize the waste heat developed in
ing less than one part in a million the process of manufacturing the
(1 in 106). That is acceptable in Plutonium to produce steam, then
oversimplifying the argument, I
current
steam
practice.
But it because
someone
else
(usually
would resolve the present situa¬
could be entirely unacceptable in Uncle
Sam) buys the plutonium
tion into three clearly recogniz¬
nuclear practice. Such a dust con¬ it is
possible to postulate and eco¬
able
and
tremendous
problems '•

which

Baumeister

Columbia University

be put to practical

comprise: (1)

use

should

illusions,

any

to state at the outset

over¬

features and
untold

stressed,

At the outset it must be

♦

that there is

stuff

nuclear

real risks and

steam

improve

that handling
presents

problems of damage

If such

boilers

the

making

some

lead

which

It-has

continued

The

could

one

mil¬

taken

us
from the
both to human beings and to ma- \
days of James Watt to learn how
terials.
It is far worse than such
to do 1 in 106 and when we could
things as fire, or dynamite, or

the spectre of atomic en¬
to push water power and

When

attain, if asked, 1 in 109, is a long
way off. This is the kind of prob¬

a nu¬

clear reactor is postulated we have

lem

which

mighthave

inherently a concentration of fire,;
fuels—coal, oil, and nat¬ of heat, of temperature, such as we
gas—into the discard. - The have never before experienced,

predicated for

to
the

were

nomically feasible nuclear power
plant. The operation, however, is

steam
quality
by
dust content one in

the

billion instead of

lion.

around

might easily be asked to

build

delusion present

mind,

anyone's

this

if carried

trouble.

sus¬

radioactive

places would

wrong

case

raw

corner,
ergy

pension could take
the

trouble be¬

cause

these solid particles in

cause

technical; the
second problem is economic; and
the third problem is legal.

supersonic airplanes.
there

Lest

centration could

essentially

lem

material
and preventing dust in generated steam; (2) making use of
nuclear energy economically effective; and (3) the legal prob¬
lem growing out of ownership of fissionable fuels by Federal
Government. Says, at present, burden of technical develop¬
ment is vast, the economics are not too bright, and the legal
picture needs clarification.
coming dangers and difficulties in handling the

before

practical nuclear power plant be¬
comes available.
The first prob¬

points out problems to be solved before

nuclear energy can

may

solved

must

that

chance

the

By THEODORE BAUMEISTER*

Prof.

Solved

to Be

Problems

Nuclear Energy
For Electric Utilities
Professor of Power Engineering,

Thursday, June 4, 1953

...

its

for

the

success

market

breeder

plutonium.

reactor

•

third

a •«

possibility which is

very

attractive

because

fuel

the

uses

basic

U-238, which even at prices like
$35 a lb; will develop the heat.
equivalent of 1,300 tons of coal.
With such
an
arrangement the
price of fuel, in itself, practically

vanishes
We

from
then

are

parison

the

which

fuel charge for power is virtually:

solved by the technical world.
I zero. ■ The breeder reactor thus
Cite
it
as
typifying a situation removes the fuel price from .the
security analyst. I ural
which can reach away back into
am
problem and the question essen¬
just
a transition, I am confident, will be we have all heard mention made
established custom and call for tially resolves itself into the cost
s t r u ggling
gradual and it will be a long time, that among the heavenly bodies
complete re-evaluation and re-de¬ of constructing the reactor and
power
en- if ever, before we find nuclear there are temperatures far in ex¬
sign .of accepted standards.
And its associated apparatus. My own
ij§|j§§ gineer who fuels ruling the roast—that's. as cess of any temperature which there are literally thousands of
guess is that the price for such
M%
said, ' "ruling
the could be made with man's usual
tries to prac- Shakespeare
technical
on which an¬
j;
mmimk ^ce what he roast." There is, however, no fires.. But stellar temperatures, swers are problems before we can reactor equipment, today is too
needed
high to be of immediate practical
preaches. doubt that fissionable material is cannot be very real when they are
say that nuclear power plants are competitive significance.- But as
I teach school a very real source of energy and
so
many millions of miles away
here
with
adequate, reliability, a forward looking engineer—the
at
one 'stand
it will certainly be developed to from
.our own environment.
The
scientific facet now comes to the
and
then
I supplement
and to complement nuclear reactions have, however, flexibility, and life.
front—I
am
not discouraged or
work
as
a
our
better understood sources of
changed all this. Now instead of
Problem of Economy
deterred. I can reason by analogy.
power en¬ energy.
having to deal with temperatures
The second big problem that is The
great Lord Kelvin' in 1852
gineer at an¬
of a few thousand degrees we are
ahead
is
to take
a
technically announced before a learned so¬
other stand. I Magnitude of Potential of Nuclear called
upon to think of, to manip¬
sound job and make it economi¬
Energy Use
ciety the basic principle of using
propose to ad¬
ulate, and safely to contain tem¬
cally effective. The most rational a heat pump for the alternate
dress
To me, as a practical person,
myseif,
peratures which might range to
Prof. T. Baumeister
spot for the nuclear plant seems heating and cooling of space. It
as
a
power the first and most important in¬ millions of degrees. Such temper¬
to be one where we could expect has
taken us a century to find
engineer,
to ducement to the successful har¬ atures are beyond the ken of man.
heavy investment to be spread offered, this year for the first
the question "What are the pros¬ nessing of nuclear energy rests in
Combustion engineering practice
through a large product output. To time,
window
air
conditioning
pects for a nuclear power plant?" the magnitude of the potential. has dealt with

that I

not

Neither

atomic scientist.

the fossil

temperatures of

When
of

such

question is asked
true engineer he must an¬
the question from the true

You

might

say the stake in the
You have all heard about

game.

the

reserves

are

swer

ahead of

of fossil fuels which
We hear

us.

few

thousand

flaming

Even

degrees.

these

two

aspects—one very

and

years

then

there

would

highbrow and understood by the no more. The picture for coal is
few, the other very materialistic better, much better. We can move
the
decimal
and
best
point.
There
are
represented
by^ the
walking dollar sign. As soon as proven supplies in the ground for
an engineer forgets the dollar
if
not
thousands
of
sign hundreds,
1
he's no engineer but a pufe scien¬ years.
tist.

refractories

thought

which

temperatures.

sources

Uranium

these

high

the

these

concentrations

consti¬

face of the globe but the best de¬

approach

posits seem to be in Central Af¬
rica, Western United States, the

assing effect of radioactive

Canadian

bounced

tutes
we

the

engineering

"What

the

are

nuclear

that

question

prospects

for

plant?"

power

I find

the

proceed

can

what

when

the

subject of

of layment, in the pres¬

ence

that

practical

great

business

will, there is

realist,

the

man,

you

tendency for

quite

his

the

Northwest

Only

less

whether the

advocate

know

about

years ago

That is,

less than 1% is in the form of the
much publicized U-235.
The re¬

glamorous,

doesn't

couple of

Eastern

fissionable.

was

maining

and

1% to be exact—of the world's

uranium

and

over

would have hold us
than 1%—seven-tenths

knees to knock and for his teeth
chatter

fuel.

spread

experts

that,
of

fission

widely

Europe.

nuclear fission is mentioned in the
presence

99.30%

was

not

the

less

useless, U-238.

But then the wizards—the nuclear

a feat of magic or sud¬ scientists—came up with the idea
denly to snatch the gold from his of breeding.
Breeding makes it
teeth.
There
is
nothing magic possible to convert much, if not
about the fact of nuclear fission. all, of the remaining 99.3% of the

perform

reality—an

before

fact.

accomplished

The

big

is to confine

problem

it, to

con¬

uranium

And, I

into

can

version

fissionable

form.

this con¬
be
accomplished
display of the magic

assure

you,

trol it, and to use it for practical
and constructive ends.
We must

without any

today' be in much the

devious ways of perpetual motion.
The very fact of
breeding altered

tion

posi¬

same

ancestors

our

when

were

wand,

they had first discovered fire.
Many of us, incidentally, are still
trying to learn how to make a

the

fire.

far

And

tiously.
even

do not

The

the

electric

most

fire

with

fuels. With
the

modern

nuclear fuels

members

build

of- the
10

10,000

steam

the
bet¬

conventional

have had about
ence—not

that face¬

problem

plants

power

boiler room—how
ter

say

biggest

fossil

some

human

race

years' experi¬

without

resort

the

entire

picture of fuel poten¬
tial by moving the decimal
point
at least two

the

which

of nuclear fuel

reserves

available

are

concerned.

tion

places to the right so
to

man

are

This
in

means

breeding opera¬
language which we

all understand—in numbers—

can

that

the

proven

sionable
stitute

fuel

reserves

(as

energy

fis¬

uranium) con¬
potential about

25 times

reserves

of all the fossil

great

all the known

very much at the

fuels, i.e.,
coal, plus petroleum, plus natural

knowledge.

gas.

fidence
make

than
boots.
there

that

our

are

technology will

with

proverbial

This
is

beginning of our
But I have every con¬

progress

the

years.

does

much
seven

not

league

mean

lurking just around

that

The magnitude of these

serves,
25

times

tional
the

the

by Mr. Baumeister before
the New York Society of
Security An¬
alysts, New York City, May 1, 1953.

fully

fuels

that

and

stake

the

human

ness

*An address

the

—

figure
means,

race

energy

the

for
to

re¬

game—
conven¬

are

me,

that

source,

success¬

economically.

will not be done tomorrow.

But
■

the

most

toward

which

units—units

nuclear plant is here
is

and

ra¬

large

would

very

severe

set

by the steam power
The mdst likely atomic
plant will be much the same as

plant.

and our tools

nations.

all

ema¬

These neutrons which
around

mine—but

can

damage—not

physical
also

tural materials.

are

gamma

released

untold

your

which

the

and

are

sorts

only

punished by

temperatures

which

rays

body
our

and

struc¬

Metals and alloys,

quite proud, are
so
severely damaged that metal¬
lurgists have been called upon to
find

the

onslaught.

This is but

one* of the many unsolved techni¬
cal

problems which lie ahead.

our

highly prized alloys like stain¬
can be severely damaged

less steel

radiation,

should

be*

imagination

your

stirred to

apprecia¬

tion of the kind of problem which
must
be
solved before we will
have
is

nuclear power plant which

competitive with, and a
replacement for, existing hydro,
steam, and internal combustion
power plants.
truly

cite

could

modern

have

steam

another

plant where we
experiences as steam

such

turbines

operating 50,000 or 75,000
without over¬

hours (6 to 8 years)
,

haul.

Such plants and such equip¬

ment-might

reasonably

deliver

electric energy for a cost of 5 or v
mills per kilowatt-hour for this

general region. Of that total

thing -less
sents

than

one-half

chargd

carrying

estimated

investment

some¬
repre¬

on a total
of $150 per

similar amount represents

kw.

fuel

and

10% is needed
maintenance and sup¬

perhaps

for

labor,
plies. Cf the investment at least

half of the

present steam plant—
everything
beyond
the

are

substitutes which will with¬

stand

comparison is to be found in the

in compari¬

puny

and by
of heat, but
have to contend with the har¬

that,

boiler—would be identical in both
the

conventional

nuclear

there

plant.

is left

plant

This

over

the

and

that

means

the order oi

about 4 mills per

kwh. to pay for
the atomic
fuel, for the fuel processing and
the nuclear reactor, for
reclamation
waste

heat

steam.

and

plant,
boiler

the

make

basis

the

for

the

7,000

8,000 hours operation a year and
13 to 14% annual fixed charges
this

translates

investment

into

allowable

$225 per kw.

So if

that

this

$225

reach

dust in steam.

electric power

answer

of about

investment

for

$300

per

nuclear

steam-

plant. This $300 is
about double the price of conven¬
which comes from a boiler drum tional fossil fuel
plant and it must
as
containing dust.
Everyone cover (1) the capitalized cost of
one

sure

to purify a liquid. But power
engineers have long recognized

way

that

the

boiler

ity.

steam

cannot

output

have

absolute

There

always

tamination

the

particles

over

from

some

form

liquid

with the

drops

pur¬
con¬

solid

which

steam vapor.

These contaminants ultimately ap¬
pear

dried

dust

after

the

steam

by passage through the

is
su¬

perheater. It is true that the steam
from

fuel; (2) the entire reactor and
its appurtenances;
(3) the usual
turbine

and

electric

generating

equipment; and
(4)
all
other
charges for labor, maintenance,
and supplies.
This

money

completely

in¬

world the road is paved with frus¬
tration. But persistence, and skill,
and

real

will build

and

lies

before

us.

they

can

stand high prices for fuel to teach
us

valuable lessons.

many

Power

engineers, like all other humans,
tend
to
develop a worm's eye
view.

You hear power people say,

"I'm

hydro

man,"

"I'm

steam

man," or "I'm an electric
utility engineer," or "I'm a marine
power engineer," or "I'm an air¬
craft

engineer,"

power

specialist

railroad

"I'm a
power."

These statements reflect just some
of the many diversified uses to
which
•talk

ity

power

electric

take but

plants

power

contain

count

billion

first

cited

are

ac¬

horsepower—

much capacity.

numbers

horse¬

automobiles

our

The util¬
this country

million

power—but
50 times

power

100

about

for

When

put.

utility

small chip.

one

These
to

put

things, first. Other fields also

offer

tremendous

magnitudes

application.

power

studying

the

nuclear

for

anyone
po¬

power

tentialities, the inducements of
the transportation field are very
real.

prices which
could

tem

Aviation
the

heat

these

Many

a*-d do sunoort

fields

can

high priced fuels—

public utility

sys¬

afford

pay.

never

gasoline, for example, on
basis, costs five or ten
much

here
that

coal

the

for

east.

aviation

most

That

of
plant has a real
economically, over the
utility application. A hat full of
fuel could
conceivably fly you
around
the globe several times.
means

nuclear

type

power

head start,

But

shielding is necessary to pro¬
people from radiation. And
shielding is thick, and heavy, and
bulky. But a modern large con¬
ventional airplane can easily burn

tect

tons

doesn't

show

gasoline

take

how

much

hour.

arithmetic

dead-weight

shielding could be substituted for
get

present-day boilers is really plutonium-239 (Pu-239) and util¬

goal

The

surely

I look to fields where

consuma^e

have to buy
prepared
fissionable fuel like
U-235.
If, on the other hand, we
can
make a synthetic fuel like

road which is

failing.

never

success

and

time,

and

manpower,

money

nuclear

your room
it in winter.

really make prog¬
In
our
technical

adequate, on present day prices,
to
justify the construction of a
plant if

cool

heat

slowly.

ress

utilities

will

and

Sometimes

added

for'the layman to visualize steam

knows that distillation is

which

summer

times

kw. as
the total allowable and justifiable

It is probably hard

units
in

part of the conventional plant
—the
electrical
end
of
$75—is

problem—
small, but it could conceivably
cause
trouble.
That problem
is

come

going to har¬

are

what lies ahead.»Not only

son

scientific

only by the largest utility
systems. The competition for the

suitable for high
Our former accom¬

were

foreword

costs

usable

heretofore

through a most difficult situation.
Therefore, within the framework
that

unit

approach

we have ever previously
the conventional coal-fired steam
been called upon to handle. This
plant, substituting nuclear fuel
concentration
of heat makes
us!
for fossil fuel. So the standard, of
change our ideas about metals and *

plishments

low

size

anything

Now in comparison, where does
forgets the
science he's an improviser who is fissionable fuel stand?
Uranium
attempting
to
bull
his
way and thorium are our two present
soon

•

tional

well below ten
thousand degrees.
Today, we, as
engineers, are asked by the impact
are

arcs

every
engineering viewpoint. That view¬
hand of oil and its imminent de¬ of nuclear
fission to devise struc¬
point must include two equally
pletion. We hear of that popular tures which can, at least in the
important aspects—one a scien¬
tific and the other an economic. A fuel, natural gas—it could supply limit, work with potential tem¬
real engineer must always remem¬ all of our energy needs for five peratures many times higher than
ber

get

our

•

com¬

is not unlike
a
project where :the

electric

hydro

calculations.

reduced

You

the

gasoline

airplane

could

carry more

off

—

and

the

conceivably

still

ground.
have

dead weight as food—

Continued

page

Volume 177

Number 5226.3.,The Commercial and Financial Chronicle

(2419)

and sometimes alters,
important policy statements which

literal

have

bers

approves,

Structure and Functioning of
Council of Economic Advisers

been

must

rely

which

backs

and

effective

him

the

they

met

and

formal

they

the

been

Presi¬

in * close

and

frequent contact with the personal
assistants

objectives.

the

who

President,

much of the President's work.

way

1946,

rather
The

the

read

you

Act

you

Employment
find

may

unimpressive

declaration

document.

policy

uroad

and

forces

which

during

this

have

general

that

been

scarcely

any¬

whether

could

one

with

quarrel
it.

The

Act

confer s/- no

Advisers

does not

prescribes

n o

ity

eco¬

Government)

nomic depres¬

pression test.

sions.

believe

new

ad¬

visory agency,
C.

Robert

then

but

Turner

tion

low

ceiling

require that agency to

same

runnerFurther-

the

Council

(and

avoid

But in

that

the

the
me

the main, I

real

test

the

not behind

us,

evaluation

subjective

work

Council

the

Employment

Act

excluding the monuments

—have

regularly been more than
twice the appropriation ceiling for
the Council of Economic Advisers.

Yet, the Employment Act

was a

momentous

For

piece of legislation.
first
time, it formally

the

committed the Government of the

United

States

policy of
maintaining full employment. Al¬
though the word
not

used

tion

the

commits

for

the

its

first

full

not

the

achieving
create

that

better

And
a

this

law—to

have

should

economic

high

ment. I shall segment

tion into five parts,

relationship
each
with

which

Second,

achieving

the

and

quantitative

the

extent

objectives

Act

have

By this test,

formance

has

The

seven

past

which

the

way

simply

clearly been
years

per¬

good.

have

been

point, to make

some

tions which may seem

vious. Yet I find

disposition
have

who

had

not

the
all

over-personalize

common

messages
the

duties

made

are

his

personally all of
appointees,

presidential

personally

innumerable

the

which

There

impression

President

appoints

name,

experience in

of the President.

to be

the

common

the part of people

seems

decisions

highly ob-

rather

observa¬

and

writes all of his own
and
and

speeches. Clearly,
responsibilities of

the President of the United States

much

are

too

vast

for

any

such

extraordinary
growth
and
abundant job opportunities,
marred
by only one relatively

involving hundreds and sometimes

minor

thousands

years

interruption.

Standards

have

in-

piLr.1 ,„of tXle wor^ng machine
I have heard the view expressed
of
a

personal attention. The presidency
is

institution, large, complex,
individuals.

quarters that the Council

some

Economic

Advisers

group

highly

should

objective

the

hurly-burly of everyday af¬
fairs, who would sit in supreme

dom, for him to accept
he

fit.

sees

in¬

This

arise

can

reject
view, in my
or

only

out

complete misunderstanding of.<the
nature

the

governmental pro-

Policies, including economic

cess.

policies,

are

large part

made

by the presidential office, not the
President.
of

this

They

elaborate

mechanism
the
A

called

have

the

presidency.
itself aloof

day-to-day functioning

The

which held

this

multi-bodied

and

product

functioning

which

institution

Council

the

are

continuous

the

ineffectual

Council

visers,

over

has in

bridge table.

seven

Ad¬

years,

in the

for

would

has played
formulating

large role in
economic pro-

very

the

Sram of the President.
nomic policies of the

have, in

very

Council

three

Re¬

given

arguments

can

men.

There

good

are

favor of either form

three-headed

believing
be

tion

aver-

that

equally

economic ideas which

the

form

of organiza¬

Council,

and

either

with

small

the

orocess

—

conversely' the Council could
public reports, as it does
render

Fur-

now,

in addition to such informal,

lueimore> Lne Prc>cess 01 iinaing confidential
common
reports as the Presi¬
ground on which all
^ uuxu"lun biouuu on
dent might request. Each has its
Coun.cl1 members can stand
often; results in an emasculated advantages. Confidential reporting
product, rather than an averaged to the President should yield ad¬
a

product; in avoiding issues rather
than resolving them,

Furthermore,

quite

sible that just as sound
recommendations
from

from

vice

guardedly

pos¬

frank

in any

less

avoid

adverse

public document by
official.

ernmental

Council.

and

Suppose

Gov¬
the

Council members, almost by defi¬ Council, for example, were con¬
vinced
that
a
depression was
nition, are individualists. They are
likely, consciously or unconscious¬ probable and imminent, and that
certain very difficult policy ac¬
ly, to be jealous of their equalranking^associates ^hev^relikelv tions would bev required to avert

g assoclates' "ey are likely
individualistic

much

coordinate

strongly to

member

councilor

would

For

than

the

staff

man.

they

are

likely

subordinate

same

reason,

listen

the

member

right

process

single councilor and

the

fact

remains

pronouncements is not always
either possible

On the other

desirable.

hand, the analyses

slightly of economic objectives, developefiectiveiy as ments, and prospects contained in
equal rank- the Council's report are, or should

three

be at least, valuable information

ing council members.

to the

public at large and to econin particular.
True, these
analyses could be made public

A One-Man Council

omists

More Effective

Whatever

the

answer

°ve]f the signature

that

could

the

£0unc.1. If he ,re

jingle individual

participate far more effec-

tively

of the Presi-

f«rs Tt^hoZn^tb^l

be, it is clear that a Council

day-to-day policy-

Continued on page 32

The ecoPresident

large part, coincided

main,

the

Council,

the

part of this day-to-day

This announcement appears

only

as a

matter of

record

NEW ISSUE

pro¬

developed these policies it¬
Council has been

cess,

$40,000,000

self. That is, the
a

part of the President.

Yet, I believe that this integra¬
tion

the

into

that

work

the

Richfield Oil Corporation

Council

President

has

living have increased despite the cludes persons not only in the
heavy overlay of the securitystaff agencies in the Executive
program in the last two and a Office of the President, such as
half years. The record as to price the Bureau of the Budget, but also

been less than it should have been.

stability

has

son.

although

contrary to much

not

been

good,
care-

less talk, the period has not been

one

uninterrupted inflation.

spite

other

this

blemishes,

record has been

not

ance

the

with the problem at hand, and

regular, line agencies of
Government. It varies in its makefunctions

certain

and

the whole the

independently
sits

behinds

important

the

extent

man

who

the President's desk.

good. Yet, this is

I do not mean to under-emphasize

adequate test of perform-

the

Employment

Council
Act.

For

one

Furthermore, the

precess

should

This

may

Due June 1, 1983

in¬

have at
be partly

attributable to the personalities of
involved

the

individuals

last

seven years.

The
-

the

Corporation, pursuant to agreements
undersigned, has sold

thing,

ganization. He makes certain cru-

have

decisions

for

which

many

followed,

parallel decisions.

basic

economic

key

appointments.

set

attributed,

subsidiary

He reads and

The
men

believe,

described Debentures to a group

of the

Council

equal rank and salary. The
is

of institutional investors.

the

Council is headed by three

chairman

negotiated by

agreed to sell the above-

the

Structure

the pat-

He makes the

But it may also

been

times.

Debentures

participated in the

policy formulation
other

Thirty Year 3.85% Sinking Fund

been

during report sea¬

It has not

has

structure of the Concil.

tern

President

always

influence

felt primarily

timately

exceptions,

important

He sets the tone for the entire or-

cil and

of the

two

Council's

the role which the president plays,

cial

means

the

under

the recommendations of the Coun-

With

chairman

the

that

perhaps

and

between

but

complete frankness of official,

Given

the averaging-out

man,

competent
can

say,

those

man.

ly the public impact of what they

could probably take place

between

than

subordinate staff

officials tend to exaggerate gross¬

less

sympathetically to the views of
coordinate

publicly and boldly such
findings? So doing might acceler*te. or aggravate the depression
it is desired to avoid. Government
"* ~~ J
J +
" ^ ^
announce

single

the Council

-should

Could

express^their

views

Council of Economic Advisers be¬

the

public

This is always a problem

reaction.

emerge

three-man

worded

possibility

economic

would

which

straight-forward,

single economic councilor

with the recommendations of the

cause,

—

of the President only. Or,

name

findine

the

concerns

the

entirely confidential, with pub¬
reporting done by or in the
~
—

lic

are ?toughly simi"

economic predilections.

President

reporting job
done by the Council. The Coun¬
cil's reports to the President could

deviation, and skewed at
that, because the President inevitably appoints members to the

thermore

the

character

aver¬

can

Council.
A further problem involving
the relationships of the Council

the

mod-

standard

Congress, when the annual mesthe

aged is usually one with

headed

prepared,

than

hierarchy

and reliable, if it were a
single-headed agency. In the first
place, the frequency distribution

may

are.

repre¬

Council.

three-man

can

would be possible to give one man

erate

early weeks of each session of the
sages

they

sponsibility in a one-man Council
would be cleanly placed, and it

sound and reliable

Council

part of the institution of

the presidency. Particularly

sent

reasons

fairly substantial degree

staff members

than

be made to work. My
median result would be the prod¬ personal preference—and I do not
that
it
is
uct. To some extent, that is the maintain
necessarily
way it works. But there are some right—would be
for a one-man

successfully discharged this func¬
tion

higher status in the governmental

having

aged out, and

would

man

one

effectively

governmental

extremes would

agency,

ignored. For inter-agency de¬

resented

recognized that

was

larger staff just

Economic

the past

the

felt that by

ad-

completely removed from

would

with the
compelled at

feel

that

obvious

not

may

.which makes up the presidency.

relationships

makes

to appraise preformance is

this

removed

indicated,

overworked, but he could be rep¬

economic ideas and doctrinces are
highl
controversial
and it was

presidential policy, even jar

though

"presfdentiaT Dolicy'Tven P°Uncil wh?

kibitzer at

President

The

this

Branch

achieved.

public
at
profes¬

the

Council's Rela'ionship With

for

h**"

from

First,

Objectives Have Been Achieved

been

Presi¬

sion.

President.

Congress.

the

the economics

large, and

did

policy coordina¬

Executive

measure

works:

government

this evalua-

analyzing the

five

Government,

de¬

Government, and between

One

jud£-

dent, the Congress, other agencies

the office

Such

the
Council to
major groups

the

done.

of personal

degree

tion within the Executive branch
the

been

might

concept must necessarily involve

prevent

and

have

opinion,

some

hindsight—of

although it
formula

it did
mechanism for planning

They

signature.

President the benefit of their wis-

has

been

use

objective,

end,

Government—

the

m1_

isolation and periodically give the

Act, the legisla¬

time

prescribe

"depression"

powers

pressions.

the

made

may

comparing what
done against

of the

under

what

Presidents

visers,

fit

that

for

etc.,

programs,
,

us.

concept—formulated

alone—

expenses

iative

de-r

the

propriations for the Battle Monu¬
administrative

eco¬

They have partici-

ments Commission for salaries and

extremely small. The ap¬

with

concerned

affairs.

that the

mean

actually
sort of
with bene-

remain

the

of Economic

Employment Act lies ahead of

sets

appropria¬

the

haps the ultimate test is the abil-

curing

ates

pated in drafting messages, legis-

for

cre¬

government

people and

volved
direct
contact
with
the
aueci
contact
wun
tne
Council has not been tested. Per-; President1 Thev are a functioning

formula

-It

staff

agencies

nomic

existed.

necessarily

with

other

total

Employment

Council

had

have

the absence of a denression
tne absence 01 a depression

more
more,

powers.

the

not

heads:

less

meas¬

munication

com¬

would

terms

results

and the

Act

the

work

period

that,

strong

least

product,

been

seven-year

been

ured

have

They have been in constant

already

with divided views, the
all three are likely to

liberations,

operates.

Economics,"

have

process

have

their func¬

period of time,

same

.have

l*\

with
..

that

Office

dent. In this

information; (2) to establish economic
(3) to forecast future economic tendencies, and (4)
persuade decision-making individuals by "jawbone eco¬

highly scienobjective "Supreme
a

quately to take in to account the

discharging

tions in

goals;

has

limited

AttrAtTrtv

Court

believe that this notion fails ade¬

President,

however,

been

should

and

communications

been

tific

mem¬

This does not necessarily

mean,

economic

nomics" to achieve these

the

m,.

affairs.

periods

Council

their

have

not

been

time when

the

Ad¬

come

views

general^ staff from everyday decision-making.

economic

with

reports

other government agencies as well as lack of coordination with
their research activities. Lists as Council's functions: (1) to

visers

Economic

President's

have

when

problem of "doctoring" Council's reports for
political reasons. Upholds questioning of Council's members
by Congress, and reveals semi-isolation of the Council from

Presidency.

part of this institution.

field

talked

stresses

provide

the

ber

him up

the

months at

Presidential aid,

Council

There

Analyzes relationship of the Council
segments and agencies of the government. Holds a

the other

Council.

that this Council of Economic Ad-

is the

tives have been achieved.

Council would be

organization

the

large portion of responsi¬

very

The

•

the

word; he has making in the institution of the
mempresidency. It is far easier to con¬
The theory sult and be consulted by one man
behind this triple-headed agency than three. When the three men
of

over

had its roots chiefly in two ideas.
First, there were some who felt

visers is

one-man

others,

of the

sense

authority

to carry out

bilities

Professor of Business Administration, Indiana University
Formerly, Member of President's Council of Economic Advisers

with other

But in large degree, the President

By ROBERT C. TURNER

Calling the Employment Act of 1946 "a momentous piece of
legislation," Dr. Turner says, by test of performance, its objec¬

prepared

June 2, 1953

Kuhn, Loeb & Co.

The Commercial and Financial Chronicle.

(2420).

;

By WALTER LICHTENSTEIN*

Formerly Vice-President, The First National Bank of Chicago

Without presenting a

solution to the problem, Mr. Lichtenstein
and cons of tariffs and restrictions on foreign
Foresees need for fundamental changes in our tariff

discusses the pros

laws, and points out U. S. is only creditor nation
ing

means

not

now

Foreign Relations, Inc.,

58 East 68th Street,

"Trade-Not Aid" Problem?

trade.

Thursday, June 4, 1953

mary materials. Furthermore, un- finished goods relatively speaking
New York 21, til, late in the 19th Century. Ger- at high prices and buy raw maNew York. The Council on For- many and the United States began terials at relatively low prices,
eign Relations, unlike the Chicago to compete seriously in the export In those days, -the countries
Council on Foreign Relations, is markets of the world, Great Brit- the world more than at present ./
a closed body with a limited memain, up to that time, had had a were not manufacturers and at
bership housed in its own hand- monopoly position in many lines, the same time producers of raw
some
building.
Its purpose is Consequently, it was relatively materials, and it wasn't as true
chiefly research in the field of easy for Great Britain to adopt a as now that every nation wanted
foreign policy. It publishes among policy of tree trade; though even to be great in the field of inmany
other things, a quarterly then in the late '40s of the last dustry. The statement just made
magazine, "Foreign Affairs," which century, when the so-called corn is somewhat of an oversimpliis probably the leading magazine laws
were repealed, there were fication, but, be that as it may,
of its type in
the world.
The voices raised to warn that the ruin Great Britain was able to earn
Council
also
runs
in 25 cities, of British agriculture caused by more than she spent and as she
so-called Committees on Foreign withdrawal of protection against could
not
employ usefully
all
Relations.
The
membership
of foreign competition—in that field her profits at home, she invested

Council

Can We Solve the

not hav¬

adverse trade balance. Cites foreign investments as
of aiding other countries, but says such investment is
safe as in earlier days. Advocates selective tariff changes

sists

largely American

—

cit-

day be regretted.

leading

con-

usually

committees

these

would

some

But be

was.

and

iarge part of them abroad

the dividends

resulting therefrom

that as it may, we are not at all undoubtedly helped her in balago before a meeting of the World have been one of the 67% of busi¬ munities who meet once a month in the situation in which Great ancing her international accounts,
Institute at Rock Island, Illinois, nessmen who wanted import du¬ from October through May for an Britain found herself in the days while the countries receiving such
I stated: "Nearly everyone is a be¬ ties reduced regardless of conse¬ evening of concentrated discussion of its commercial supremacy. To funds
might repay—and over the
with a guest of special competence an amazing extent we are selfliever
in
the
quences.
years Qften did—capital and infree enterprise
I sympathize with that stand for in the field of international af- contained, we are a creditor na- terest by shipping Great Britain
system and no
theoretically I am a believer in fairs. Once a year the Council on tion, and while our export trade the food and raw materials of
one
wants it.
free
trade.
Subsequently, my Foreign Relations undertakes to is a very important factor in our which I spoke earlier. Here again,
In

talk

made

months

some

Likewise,
is

there
tinual

opening

the

that

must

to talk of our

affairs, and he told
Standard Oil Com¬

business

own

that

took

friend and I began

con¬

talk

position

respective

their

izens

mittee members
of

major

Com-

this

economy,

end

United must export to live.

the

of
California
had
been
bringing tankers loaded with for¬

members to express

eign oil to our West Coast. These

writing, in response to a detailed

prepared by the Council.
boats, anchored beyond the limits
A report is published based upon
where our domestic laws would
the replies received by the Counapply, were supplying American
cil to its inquiry.
I
nave
shipping with oil at a much lower
delivered a talk to you this evenprice than would be possible if the

pany

avenues

trade

by
the

lowering
tariffs.
you

inquiry

Have
ever

found

u s

who,

nessmen

faced

oil
Lichtenstein

Walter

for¬

competi¬

eign

was

actually imported into this
Said my friend, almost

country.

a blood vessel with an¬
"There ought to be a law to
prevent a man's business from be¬
ing injured or ruined by such eva¬

bursting

tion, wish to have the tariff rates
lowered on those products which
they produce?" This was said al¬
most exactly a half year ago. Well,
about a week ago, I met the head

ger:

sion

laws."

our

hasten

one

all

from

way

Boston

and

artificial

for

support," and again
England to "Why should the U. S. taxpayer
San Francisco, support the inefficient operation
and Los Angeles on the Pacific.
of any company and if some U. S.
Three hundred and sixty-three or
plants can't compete, it's time they
44% are businessmen, 16.6% are
began to find it out." I am a char¬
lawyers and judges, 16.6%
are itable man and I did not
inquire
educators,
6.2%
are
newspaper of
my
friend whether he
had
and magazine editors, and 16.6%
supported those views and if so,
are-engaged in other professions did he think his attitude toward
or
occupations.
The topic these the
Standard
Oil
Company
of
men had been
discussing for eight California indicated that he
might
Providence

months is the

same

one

trying to settle in

are
so

New

Portland,

Seattle,

which

hour

this

evening. My oil man was,
believe, .one of the group of

67%

of the

stated

should

363

that the
be

one

businessmen who
U.

suffering from
schizophrenia.
I

signed
well

that

need

even

policy
of
of reducing import

domestic

judge

producers.

the

Business
of

damage to
At

least,

from the very emphatic

*An address

Club

if this did

by Mr. Lichtenstein before
and

Chicago,

Professional

Chicago,

Women's

111.,

May

not

spell

related problems are the nub
the
topic we are discussing,

tell

sued

The

entitled,

pamphlet is¬
Council on Foreign

the

Relations.
is

of the

But I promised

little

publication

"Foreign

S. Tariff

Trade

Policy" and

2.5,

bought

1953.

case

out to this audience that the tariff

"Trade Not Aid."

duties

mild

for

cents

resulted

better

than the one to which you
listening.
Seriously, if you

paper
are

Also

This

these

neither

securities.

The

offer to sell

offering

nor

made

solicitation of offers

only

the

offering

good

American

ey®n

entirely out of sympathy
methods
employed by

though
with

have handed

f rjends somewhat

This is

than

however
be

due

est

tcyj

faults

(you

The^act

does not exonerate

Sas

tariffs

part.

and not

went

likely most of the Euro-

countries

bridge

friendly trade pol-

the

would

so-called

able

dollar

for what they must buy from
which, as you know, is not

USj

true

at present.
However, if we
that> we would undoubtedly
create, certainly for a period of
did,

time

difficulties

wcrp

littlp

in™hdr thfnking
ultimate effect

morp

for

ourselves,

COUntry

which

I do

nil

renun-

their

employ

Victorian

the

word

much truth

little
u

later

doubt
ii

that

sooner
ii

-i

spent

perhaps

their

lifetime

them

ulation. Offering circular

devoted our whole energy

de-

^ich

from

rioine

not

spec¬
;

anomalous one.^Usually

past

creditor

country

was

remotely self-contained.
Britain, the leading comnation

had

percentage

the

19th

Ceh-,

import a 1 a rge
of foodstuffs to meet

requirements of its people and
similarly a goodly proportion of

COMPANY, INC
M

Exchange Place, New York 5, N. Y,/

the

ZSv
J

specia, fie,ds
tariff

duties

regulations.
that this
but

re'ai

brief

veiv

veiy

brief

to have

country.

Also

u not for our

and

administrative

true

not
the

materials to manufacture

Lord

Keynes

Restricting Trade With Iron
-

Curtain Countries

TlH^f

long run,
once

(

are

to."which

must;.

not

you -are aware,ready to send any

materials to the countries behind

^ ^nother

^
of thought
h#ed>

re-

parkedaedaImwe long run we shau
dli De
^

consideration

question

Forei-_ i„v.stment

Ald Tnroign foreign lnves ment

^ Curtain which

Another/means by which we
the goods it sold abroad.. It, im-'can aid foreign countries is by
raw

?jJtfSSSJrtm

not after a careful

2f aU,factofrs invo'ved'. bnuntthb^
a"d the ability of one «de or-another
^-1™ to mvent a catch-phrase which
in
ttose W'U SW*eP
country-

were

?.ur '

as.

tbem

and

Droducing

be 0f help to

weapons

will aid
them in
carry

investing heavily hi foreign en- pctjv
^lbat- We have more or
terpnses.. Great Britain did this
j
insisted that our-allies shall
for the very important-item of oh a large scale m the nineteenth
01
.coal, it exported practically no pri-.h.century.
She .was able to sell
.
Continued on page £L
ported relatively little of finshed
goods from elsewhere, and except

our

to point out to you that there are
nearly always two sides to these
questions and that the answers
are .not quite as simple as the
slogans we employ would indiand cate. May I say parenthetically

'Tn'tte'loneTu^we5 shall

the

LUCKHURST &

allowed

not

mercial

tury,

wVt^mosfo"

this

«™

^"ntriS^who6 excel

■

HAnover 2-5340

other
countries

can'do suo^rbivwrf! thatf " sometimesseemstome

are
1??

even

Great

request.

VUTi—

branches in
do not
allow coastwise shipping by foreign vessels and we should probabiv object strenuously if foreign
concerns
came
in and tried to
control our telephone and
telegraph systems. I am just trying

rather than wasting our time on

clearing of shipments

disposing of them has passed.; The present situation is a somewhat

/(1,lb 2® '-jS.

tie-

soj long that -in- some; cases the
goodst are spoiled or the seasonTor

the

offered

services.

probably aware that most of our

a
large part of
in making and for

tariffs, might compete
in our markets, we pre-

laying the

are

on+ornriCPS

independent

words,

concerns producing goods different from those which they have

shall be compelled to

our

vent

shares,

not

N^nv fmDortersafeel the Production of which they have
hTrm than the acquired certain skiUs? As you
actual-duties imposed
Some of are aware' the statement is fre"
these reeulations
ourrch1-quently made by economists that
canervsTthat even^ when f^einn wq would be better off if we
with

These

may

types

ous

that many of the workmen would
be satisfied to take new jobs in

change fundamentally our tariff
laws, not only the rates but also

spite

Offering Price $1.25 Per Share

undertakings
would
willing to lose their money

everywhere

be desirable,
but it certainly has resulted and
probably will continue to result
in all too many cases in the confiscation of foreign property
abroad.
I don't think I need to
list
the
continually increasing
number of countries which at one
time
or
another
have insisted
that foreigners must no longer
own
or
control
the resources
within their boundaries. I hasten
to admit that confiscation is not
as likely to occur and really has
not occurred in the case of remay

those

manufacturers and merchants

than they are now.
spirit of nationalism

"adert » fyata™ «* *"? trade- Do foreign of time and in general
period banking enterprises are
you
think that the investors

the
and

Foresees Tariff Changes

have

and large were safer
The rising

ments

T states hafVe laW=

not in the Rooseveltian.

century

teenth

u
Sff
ei?n+ers from.
wrecked by foreign competition estate, except for

busi-

Hiving lio service to

sense

of the nineforeign mvest-

latter part

£°r

1 thmk there

consistent

own

the

Unr.in/100

are

Common Stock/,

Investment
In

the

and

liberal prSciples3iberai ™

the latter do

;

Fresent Damages of Foreign

in this
millions

and realized the

are

0UF people which could not wish to have control of their
ave been created and> in many mineral wealth, their public utilicases>
could not continue to ties, the products of their soil,
fIourish if we had a system of and the like- and I d°"'t kn°
complete free trade- Let "s at that we can blame them too much

before

nesses

all

domestically,

requirements

like but I wish he and others like
him

imports from

supply, in most cases, our

able to

imnni<tont

mono

out just a short time

After bave many important Indus- tail business enterprises
all, been buiit
trles

regulations

232,000 Shares

gap,

that is, they would sell us enough
0f their goods to enable them to
pay

be-

really need,

do not

"have uf

LnJ™tiio

manobjectsto Tcomplete

way

objects of charity,
our
charity may
enlightened self-inter-

our

very

pean

retort

also)

that others

own

dollars than

I pointed

satisfactory

much

over

but
but

any

quoque

excuse

over

sense

ill

thai^anv'other''people
other people

worse

have

burden for

means

their

earn

find

ago, to increase our
them
because after

year

could
be

the

buy

war

Since the

to year what the prospects of aid are. It would be much
better for their morale if they

McCarthy — I am often
by the superficiality of
the political thinking m this coun-

the

and

from

appalled

the

circular.

our

another.

0f the
to

over

Senator

any

form

one

ciose

and

may

from

different

pay

fore and

to the topic as- f0 the other countries because
In fact, ;t nnSm they complain they never know

me.

have

(hation

take

and

trade

^ possible
exporf to us by giving them aid

full justice

done

of the good but smaller

the

|ng

very

one.

must

have been makfor our allies to

now> we

by simply summarizing the re- $40 billion

port of this year, and I would have

genuinely interested in
admit that he probably regards are
oil the proceeding I have described these foreign trade problems, you
companies—not one of the first as unfair because small companies ought to send for the pamphlet.
10 in size and not a producer. He cannot afford to
It
has seemed
to
me
worthbring tankers off
and I were discussing a pamphlet our coasts and if not owners of while to spend some time on these
put out by the Council on Foreign foreign oil wells could hardly do preliminaries for whether or not
Relations of New York.
I shall
it in any case. I wonder whether I am an economist, I do consider
have more to say of this pamphlet
myself a scholar and as such feel
my friend was also one of the 74%
shortly. This valuable little book¬ of businessmen who subscribed to an obligation to my audience to
let presents the views of 825 more
the statement: "If a business can't give my sources and thus prove I
or
less prominent men scattered
meet competition, it shouldn't ask am not,voicing unsupported views.
of

-jjp f0

°Ur sltuallon ^ a countries
ve y a
If
foreign

dividends on invest¬
ments, it merely means that they

$40 Billions in Foreign Aid

themselves in

situation

our

the

asks

of internation¬

the

could exist without

specific issues it, while most European countries

concern

States.

the

views

the

ascertain

com-

Volame;177> Number 5226: The

Continued

from

page

Commercial+andi Financial Chronicle^

That it refuses to do

3
*

I
*

tutional

rights

waived by NASD members

become

would

of the

This
was

was

would have been a viola¬
Securities Act of 1933; and that Otis

under

final determination because certiorari

was a

denied

determination

record

the Commission has announced the

all this

where

can

Exchange Com¬

to the action between

courts had an

Commission's processing of

the

registration statement and sub¬

of free cash.. In a

field

poten-

tially rewarding, Westpan common
appears to
offer, an exceptional
long-term play at its current overthe-counter price of
approxi¬

hydrocarbons in place in
$15.40 per share. As administra¬
gas acreage located in the
tive expenses would be at a mini¬
''est Panhandle Field of the Colmum
in a royalty company, the
rado Interstate Gas Co. The natfull net of $1.00 per share would
ral gas reserves are very con-

ground it passes

through

be available for dividends. A more
realistic method of appraising

might

derived

from

this

consider

tax

not
facilities required

xcognized that Westpan does
evn
►r

any

of the

the extraction process..

This income stream

day

opportunity to
growth of a

with

the

promise

afforded

participate in
new

company

(Special

-business

put bank holding companies under the

jurisdic¬
held

stock of member banks which they desired to vote.
When such transformation takes

place, in the

change,, our Federal Attorney General,
states' attorneys general, the local district at¬

interim of
our

success

are

Co.

&
St.

have

111.

Mid - Western
Hugh W. Long

been

moved

105

Street, Chicago 3, 111.

LaSalle

Inc.,

Jr., Mason &
Richmond, Va., has

been elected

to the board of gov¬

John

Hagan,

—

Hagan,
ernors

of the Investment

Bankers

the unex¬
pired term of Walter S. Robert¬
son,
Scott & Stringfellow.
Mr.
recently became Un¬
New phone number of the office Robertson
der-Secretary of
State for Far
is Financial 6-1037. Teletype num¬

(Room 1400). Resident Vice-Pres¬
idents of the company are Harry
L. Sebel and Forest G. Thorne.

230.

Barth Adds to Staff

Oliver J.
to ,the
staff of Investment Service Corp.,
Dufva

444

has

Sherman

Colo.

been

—

added

Association,

serve

Eastern Affairs.

Opens

The

Financial

Chronicle)

securities
business from offices at 6 Curtis
•

•;

Renyx, Field Adds
(Special

to The Financial Chronicle)

Arthur F.. F.
Snyder has .been added to, the
staff of Renyx, Field & Co.
BOSTON, Mass.

—

(Specia1

to The Financial

Mich.

Chronicle)

ANGELES, Calif.—Robert

Crary

now

F. Hutton & Company.

Fairlie is engaging in a
Terrace.

Two With First of

DETROIT, Mich.—Earl A. Mil¬
ler and Stewart R. Parent have
affiliated with
J. Barth & Co., 210 West Seventh joined the staff of First of Michi¬
Buhl Building,
Street.
He was previously with gan Corporation,
members of the Detroit and Mid¬
E.
LOS

Street.

H. D. Fairlie

(Special

west Stock

MONTCLAIR, N, J.—Henry D.

banking institutions, placed restraints

of credit in the securities markets and

Kugh W. Long and Go. John G. Hagan Gov.
Moves Chicago Office Of Investment Bankers

to The Financial Chronicle)

DENVER,

Hydrocarbon. The very basic ele¬
ments

use

ber remains the same—CG

Westpan

has a pres- strong sponsorship, superior man¬
be agement and a renewable supply

value which would'

Seldom is the investor

the

tion of the Federal Reserve Board whore they

the

headquarters

free trust

natural gasoline through which the investor could
receive the full amount of the
id liquefied petroleum gases are
revenue without double taxation.
ttracted.
Westpan receives the
an

passage

Joins Inv. Service

lants where the

quefied constituents for resale or
percentage of net income derived
•om
direct sales.
It should be

ates of most
on

CHICAGO,

mately $15 per share.

roven

the

of definitive legislation
repetition of those abuses of
the late twenties, which have not been already
cured by those provisions of the Banking Act of
1933 which eliminated investment banking affili¬
the

intended to prevent a

hold the line.

tike Best

income

SEC, Congress should then address its at¬

tention

lay.

quid

in excess
As the
"wet gas" is taken

atmosphere cleared by the abolition

let the matter

cubic feet.-

Acts and the abolition of

Exchange Commission is con¬

torneys and the administrators of the blue sky
laws in the various states can be counted upon to

even
if exploratory
Now With Merrill Lynch
This safety factor consists substantial
recurring royalty-type of operations were> abandoned. As¬
(Special to The Financial Chronicle)
suming the income to be $2.00 per
tcome which is expected to conMIAMI
BEACH, Fla. — Lorin
share less $1.00 for Federal taxes,
nue for
at least 30 years. The
G. Nelson has become affiliated
icome
arises from Westpan's leaving $1.00 of net income which,
with Merrill Lynch, Pierce, Fenif valued at 5%, would mean an
vnership of substantially all the
ner & Beane, Lincoln building.
investment price today of about

of the

of receiving the benefit of

the

trillion

body of sentiment advocating the repeal of

With the

Kasier-Frazer and Otis &

iction.

Commission
ought to be willing to accept that judgment and

Commission and its staff."

atural gas or

view is irrele¬

'; :

our economy.

to consider if

stantly growing.

personal appearances of witnesses, and judg¬

our

ing the issues impartially, that the

sequent developments thereto reveals a shocking
story of errors, indifference, and evasion on the

;rvatively estimated at

that filling existing vacancies
lead to a better adminis¬

question is whether the Commission is

the Securities and

opportunity of going into the con¬

troversy carefully, and

some

the Federal Securities

controlling.

Co., nevertheless it seems to us that since

few of the control¬

Growing Demand for End of SEC

action binds them

consequence.

The

While it is true that the SEC was not a party

whole situation.

The Security I

of the vast

always and fixes their rights permanently.

"Apparently, the staffs attention was so ab¬
sorbed in the pursuit of Otis & Co. that they
failed to get a complete and impartial view of the

it is most difficult to
lead because the courts'

parties to

but

are

sion, the question of its immediate occupants is

re¬

law, there is a principle known as res ad¬

between

private

So, in considering the activities of the Commis¬

judicate, which means in effect that an adjudica¬
tion

client, its refusal

dictatorship is a good
or bad form of government, we would not be in¬
fluenced by the fact that the immediate occupant
of the office was either a despot or a benign ruler.

already made into the present record about

determination already made should be

bad for

Were

exhibits re-introduced, and

and failure to act in

Speaking of the Securities and
mission, this report said:

Continued from page

taken, which means that the whole matter
will have to be rehashed, witnesses re-examined,

the Kaiser-Frazer matter.

part of the

vant. The

to be

tration of its affairs. That in

implacably determined ad¬

has refused to incorporate any part

see

against the NASD.
of the Commission, its
public moneys, its persistent

the Commission may

opening of hearings in the Otis & Co. case, and
in its last determination, adding insult to injury,

taken by the Securities and

"Our review of the

It is said
on

Unrelenting Malevolence

And

sus¬

against

that

reasons

good
.

will

impress upon us the urgent
need for the prompt abolition of the Securities
and Exchange Commission.

bent upon a kill, disregarding the fact
that it is completely in the wrong.

deal minutely

waste

no recourse

accept the courts' determination of

ling

versary

Committee

which

for

spite

involved—all these

at the very

was

But no, here is an

persecution of Otis & Co. Let it suffice to give
a
portion of the report of the so-called Heller
Committee, which was a subcommittee of the
House Committee on Interstate and Foreign Com¬
merce and had been conducting hearings pursu¬
ant to House Resolution, which included an in¬

the Kaiser-Frazer

today than it
I

outrageous

lost time,

the

controversy in which the public interest is not

years

beginning.

Exchange Commission and the National Associa¬
tion of Securities Dealers in their persistent

quiry into the SEC's action

was

had elapsed since the Commis¬
persecution, in the process of
which a fortune of the public's money was spent,
and still the Commission is no nearer any solution
or

it for

cations between attorney and

Already,

happiness? What significance could there be
bill of rights?

with all of the steps

attempts to pierce the veil of privileged communi¬

sion had started its

guilty

cost

Clearly, it will have

needless

by the Supreme Court of the United

reasonable to believe that
the controversy had finally been laid to rest, and
that, in view of this decision, the Securities and
Exchange Commission would stop its witch hunt
and pursuit.

to any

little point to

The

obligation to accept the stock.

By that time, it

privilege, how could any defense
adequately prepared? How could any person
safe in his life, liberty, property and pursuit

serve

;

right, if not by the Commission then by the courts
on
appeal, what redress will Otis & Co. have for

States.

Without such

would

and if Otis & Co. is found to be in the

course;

perpetrated by the corporation; that the
was at least $3,100,000 short
truth; that the sale of the stock to the pub¬

1952,

Appeals found

the Commission

& Co.

Voiced by Heller

mean

have

strength of evidence adduced by the prose¬
cuting authorities.
•

Criticism

nothing to us—the public
interest everything. And this prompts us to in¬
quire ,when the SEC's witch hunt has run its

tained?

the

such

tion of the

testify against himself and must be proven

Names

and for the heartbreak

practice and procedure recognize, a man is con¬
sidered innocent until convicted and need not

■

publicity,

position that was
tantamount to making him testify against him¬
self. Under our Anglo-Saxon system of justice,
which obviously neither the SEC nor the NASD

Flagrant Waste of Public Funds

the tremendous

other damaging facts to his own attorney
knowing that his attorney would be compelled at
the trial to reveal these admissions and prejudice

the loss of customers, for the adverse

and any

of the

tragic. It would mean, for instance,
that an innocent man charged with murder who
was nevertheless in the vicinity at the time the
crime was committed would hesitate to admit this

;

lic by Otis & Company

sacred, sealed and privileged?

He would be put

earning statement

It would be

case.

;

complete proof of its

had been

system of Juris¬

prudence in which freedom was founded if com¬
a lawyer and his client were

his

April

unrelenting .malevolence.

the United :States Circuit
and decided that the
Kaiser-Frazer statement and prospectus were in
fact and in law false and misleading; that a fraud

munications between
not

Court

notice of any such -waiver wasthe application blank, i .
;
no

Danger to the Individual
What

their applications for membership.

Certainly,
contained

were

After

long, -arduous and "costly controversy,
the' privates-litigation- in the courts between -the
Kaiser-Frazer Corporation and-Otis & Co. was
finally resolved in favor of the latter.

in signing

(2421)'. 17

Joins

Campbell & Robbins

(Special to The Financial Chronicle)

PORTLAND, Ore. —George D.
has
become
affiliated

Belford

Exchanges.

With Schirmer,

Atherton

(Special to The Financial

BOSTON, Mass.
Brooks

now

Chronicle)

Gardner
with Schirmer,
—

Campbell & Robbins, Incor¬
Atherton
&
Co.,
50
Congress
porated,
U.
S.
National Bank
Building. He was formerly with Street, members of the New York
and Boston Stock Exchanges.
Walston & Co.
.
with

The Commercial and Financial Chronicle...

Thursday, June 4, 1953

(2422)

maintained.

Holds Inventories Not Out of Balance

Unemployment Insurance
By ROGER W.

commenting

Mr. Babson, in

During

♦

I received many in¬

have

which

letters

teresting

letters can be

saved. Most of these

classified

un¬

Inven¬

tories, (3) Per¬
Debts

sonal

and (4)

Labor
As

Unions.

these letters

from

come
over

30 differ¬

ent states, they

give

cross
section
of
a

what the aver-

business¬

■age

is thinking about.

For

assistance and other
Government, State and

aid—will be of real
help
in
preventing a business
collapse. Doubtless these checks
from
the
public treasury
will
cushion a decline in their busi¬
Municipal

•

when

ness

unemployment comes.

But why have the unemployment?

These letters almost unanimous¬

complain about the
present abuse of this unemploy-

ly,

however,

insurance.

ment

Massachusetts

•

instance,

For

who earns

person

^approximately $500 in each quarter
of
a

year, or

approximately $2,000

entitled to collect $25
for unemployment,

year,

for

weeks

$575. But the laws of the vari¬

ous

and

they were out of employment
needed the

money,

higher prices being paid for auto¬

refrigerators,

mobiles,

rowing. I hope they will be care¬
ful
and
avoid
a
policy .which

for their com¬

'.•

every

states vary

somewhat as tat he
and the duration of

amount paid
paic

the

absence

goods
in¬

slowed

which coincides

economy.

state I re¬

complaints about the arbi¬

while sales
Inventories
in

declined,

have

increased.

painter, plumber,
bricklayer, etc., getting more pay.
carpenter,

for

orders
or

built

up,

have

goods

exceeded the volume

sector

are

volume

sales

determination
-

have
this

lighter than might be

well

business

the
all

not

have

that

however,

attitude ' of
cause

the

never

the

building

be balanced at

the TVz% attained in 1920,
a rate below 4%
was

1929

rarity.

"In the

assertions

light of such comparisons,
that today's rates are

injurious to business and agricul¬
fall rather flat.
Perpetually
easy

money.

able

cerned

is,

agree¬

course,

borrowers

who

are

con¬

only with immediate dol-

lars-and-cents considerations. Per¬

tion refer to the 'dangerous

The June issue of the

critics

apparently
will bring

recession.

recession when
is

business

the result of

•,

fear

be.

can

ar¬

pansion.

preventing

the supply

than
a

If there

comes.

recession,. it will be
preceding over-ex¬

allow

the

over-ex¬

pansion to run on unchecked by
maintaining artificially easy
money would be a curious way of

only bene-

are

any

money

with equal force that tight
will check the exuberance
of the boom and thereby ease the

higher interest rates. :!

"Guaranty rate,

tight

gued

Survey," monthly publication of of. and demand for
the Guaranty Trust Company of? can be balanced at

col¬

spiral

of interest rate increases'' but omit

money

fixed rate. Denies banks

ficiaries of

may

boom to

Before

business

present

labor' leaders

compared with the 6% reached iri
1929

"Some

Trust Company of
New York, says outcry against "tight money" reveals number
of misconceptions, and supply and demand for money can

building and buying of homes. I
fear,

seems

high by contrast with the low of
V\ % in 1941, but not when it is

"Guaranty Survey," publication of Guaranty

homeland hence
encouraged

always

on com¬

for example,

exercise r great care in to mention the spiral of wage and
purchasing of goods are work¬ price increases that gave the coun¬
ing to prevent the type of inven¬ try its 50-cent dollar during the
tory glut which in the past has years when the Federal Treasury
was dictating the interest rate for
resulted in painful liquidation,"
its own supposed benefit.
Dockson states.

Of Free Market

great believer in every

family having

and

present

the

Holds Interest Rate Rise a Manifestation

which

vicious circle
sometime must collapse.
up

war

periods
is the
level high. The 2%% rate

postwar

that

producing what they should and
are loafing on the job. The work¬
men
in turn blame the problem
on the labor
leaders. All of this
sets

of active business and

time

levels, to

They, however, complain desper¬
ately that these workers are

ture

that while

been

have

inventories

normal

the

The study takes note

greatly increased Sales or a: re¬
sumption of the upward move¬
ment of prices.
"Stocks
of
nondurable 7 goods

actions of union labor. My
correspondents do not object to

the

rate

with

closely
growth of the

new

for

looked

Labor Leaders

almost

mar¬

number

of sales, and the backlog of un¬
petually easy money,, however,
opening months of 1953, are fairly
filled manufacturers' orders totals means inflation, which is injurious
well balanced and in line with
$74 billion compared with $69 to all in the long run. Those who
current sales. Substantial further
billion a year ago. "The record find fault with the present situar
accumulations
are
not
to ■;« be

etc., encouraging unnecessary

From

of 3%,

of 1952 and main¬
high levels during the equalled

tained

>;•

the artificial rates of the

recent months to an an¬

fairly

closing months

coats,
bor¬

fur

The

accumulation

nual rate

during the

the
goods.

of nondurable

declined.

down

inven¬
built

tories,
:

for

mercial paper,

study,

durable

was

stocks

ventory

i st,

the

have

with

are now,

dur¬

period

the current buildup
began last August.

buildup

bank's

'goods
Robert R. Dockson

3.4%

increased

Total

"Durable

when

customers

loan

of March. Total business

According

Robert
Dockson,

e c o n o m

dangerous feature of the
situation is that local banks, which
to

needs.

,statesr

refused

ing

summing

the

end

which

further

permits
credit expansion.

ceive

old-age

A
up

other misconceptions.

been caused

had

concern

inventories

out

current

trary

pression comes, these unemployment checks—as well as pensions,
sources

not

revealed

has

■

money

the

balance with

however,

unnecessarily

de¬

that if

insurance. They feel

whole, and are

has not given the Fed¬
System the power
curb consumer credit,' and this

opposed to unemployment

not

are
.

business

Reserve

would not be good

subtle reason most
especially retailers,

very

businessmen,

controlled

V':-

the

econ¬

expanding credit.
Only in com¬
rise in inventories of manu¬
parison with the abnormally low
facturers,
wholesalers „■ and
re¬
rates of the depression years and
tailers to a total of $75.2 billion at

being well

are

Congress
eral

Some

..iventories

larger than ever and these should,
a
certain extent, serve as an

munity.

Unemployment Insurance

•

•V

Unfortunately,

the

America, indicates that

today
indebted for $19.3 billion due on
installment purchases. Savings are

offset.

(1)

Excess

man

Bank

Department

Economics

borrowing."
Installment Debts

Un¬
employment
Insurance, (2)

Rarer W. Babson

national in¬
by the

the

study

ings:

asa& h

healthy

a
• •*

"Comment
ket

everyone
money

One of thesd
expected when recent inventory is that the present rate level is
As a matter of his¬
to sales ratios are compared with unduly high.
torical fact, it is "very moderate
those for earlier periods."

ventory picture just made

The American people are

der four head¬

whole and rate

omy.

indicates inventories

while

winter,

past

the

in the South,

Economist of Bank of America, says study
are being well-controlled by business as
of accumulation has slowed down recently.

Robert R. Dockson,

BABSON

"encouraging unnecessary

are

Indirectly,

because sound

indispensable

abuses of unemployment in¬
surance, says "getting fired" in order to collect insurance is
becoming a fast growing racket. Discusses inventory situation,
instalment debts and labor leaders. Says many local banks

{
i

benefits,

moderating the

cession.
"Even

commodity
fixed price.

re¬

J...

among

those

who

ap¬

prove of the new monetary policy
a
Considering that the build¬
as
a
matter of broad
principle,
New York, explains the case for If the interest rate is set too low,
small house aids 27 dif¬
there are some who believe that
higher interest rates by stating a demand will ; increase,' and "the
ferent industries, such a collapse
the time has come to reverse/the
rise in interest rates is simply one; only way to keep the rate low is
should be avoided.
trend and make funds more readi¬
manifestation of the return to free through, a continuous and unlim¬
This, view is based
ited expansion of the money sup¬ ly available.
markets.
v: —
.-t,
on
the expectation of a coming
'
;
.
"The outcry against; Tight ply.- That is inflation.
business recession and the belief
money' reveals a surprising num¬ I ^"Another, widespread * miscon¬ that- easier
money
would
help
ber of basic misconceptions, even ception regarding the advance in
mitigate its effects.
\
r\
in
quarters where more under¬ interest' rates is that banks and
"Such forecasts are defensible
standing might be expected and is other lending institutions are the and
may even be right.
Central
WASHINGTON, D. C.—Richard
needed," the "Survey" comments, principal beneficiaries," the "Sur¬ bank
B.
McEntire
has resigned
policy, however, must be
as
a
vey" analysis continues. >
adding:
• ■ v ; ' •
•
V:'
based on existing conditions, not
member of the Securities & Ex¬
"Among the comments of critics
"Perhaps the most pervasive of
on
unprovable
assumptions re¬
change Commission effective im¬
these misconceptions is that the are such statements as that tighter
mediately. Mr. McEntire, who is
garding what may happen at some
Federal Treasury is responsible for; money has
'made it easier; for
indefinite
future
time.
second
oldest
Commissioner
in
Against
the interest-rate level. In reality, banks, insurance companies, cor¬
such vague fears, it is possible to
point of service, has held his post
Treasury domination of the money porations, and private investors to
since 1946.
point to dozens of reasons for the
market
ended
more
than
two obtain higher interest rates, and
present hands-off policy.
Credit
There are now only three Com¬
years
ago.
In March, 1951, the thus higher profits, on money demands continue unabated. Em¬
missioners in charge of the SEC,
loaned
to
the
government' and
Treasury and the Federal Reserve
ployment is at a practical maxi¬
Republican,
Adams;
Democrats, System reached an accord where¬ that 'it has been a decidedly fav¬

lapse.

ing of

■

payment. If these
but my
a

bona-fide

were

be so bad;
correspondents claim that

cases,

would

not

large proportion of these

employed"

"un¬

purposely

have

ar¬

ranged to get "fired" in order to
get this insurance. In other words,
it

becoming

racket which is

ployment
the

situation,

character

fast-growing

upsetting the

em¬

undermining
and

employees

causing an unnecessary drain on
public funds. If unemployment of¬
fices

cians
do

not

are

and

seem

by politi¬

operated

their

officials

friends,

to be shutting their eyes

to this abuse. It should be

stopped.

R. B. McEntire

S. E. C.

Membership

Rowen

Cook.

and

still Chairman of the

writes
many

C.
a

which
reasons

course,

Baltimore,

letter which is typical

similar letters. He calls at¬

tention

Lang

the

excess

businessmen
feel

the

Cook

Commission,

hower he

publican

will resign when
Chairman has

Re¬
been

named.

various

carry.

your

com¬

PhiEa. Invesfm't Women

Industrial production and
national product are at alltime
highs. Demands are being
that
made for a new round <pf wage in¬
mum.

the

Federal

Reserve

aban¬

doned its wartime and early post¬
war

policy of

sumed

its

'pegging' prices of

and re¬
normal statutory func¬

government

securities

the credit sup¬

tion of regulating

inventories

for

obliged to
future

Mr.

but has informed President Eisen¬

Danger of Excess Inventories
John

Quits

orable

setup

for

the

banks

banking interests.'
•
"The critics might recall

has likewise been loaned to
government by millions of
holders
of savings bonds,

money

the

and

small

ply 'with a view to accommodat¬ who have found that they made a
ing commerce and business and bad bargain when they responded
with regard to
.
the general to patriotic appeals for their sav¬
Credit
situation of the
country' ings, because the value of the in¬
.

gross

The

creases.

tion of the

still

velocity of circula¬
existing money supply

relatively low, and

celeration would be
its

inflationary

crease

Treasury

effect,

volume.

faced

ac¬

equivalent, in
to

The

with

in¬

Federal

heavy
(the language of the Federal Re¬ vested dollars shrank faster than deficit for the
current calendar
the number of dollars increased,
Act).
year, and a substantial portion of
'
"As
long as the Federal Re¬ and who as a result have become
PHILADELPHIA, Pa.—New of¬
this
inventories on a reasonable bal¬
may
have to be borrowed
ficers elected by the Investment serve
continued to
support the more and more reluctant to buy
from the banking system. Tens of
ance.
Women's Club of Philadelphia are government securities market, the such bonds. They might recall the
billions of dollars of Federal debt
Louise Powell,
Kidder, Pea- Treasury remained free to borrow other owners and receivers of dol¬ is redeemable at the
Such a balanced condition E.
option of
body & Co., President; Sara M. at such interest rates as it chose lars, such as pensioners and others
would help to
holders on short notice."
give your com¬
Grabill, Stroud & Co., Inc., Vice- to pay, and the Federal Reserve dependent upon fixed incomes,
munity a steady but gradually President; Helen Schnetke, Raff el was obliged to stand ready to pur¬ who have suffered severely from

munity depends, in the long run,
on
keeping purchasing power and

increasing prosperity. Various
suggestions

have

been

made

for

Elect New Officers

serve

&
Co., Treasurer, and Margaret
Devine, Harrison & Co., Secretary.

Committee

preventing excessive inventories.

Chairmen appointed

the

cheapening

offered at

and

whose

the

dire

chase

from

owners

all

securities

prices corresponding to
predetermined rates. Such

the

currency

position could become
the
depreciation should

With J. J. B. Hilliard
(Special

to The

Financial

Chronicle)

LOUISVILLE, Ky. — Oscar S.
increased
bank
re¬ continue.
Larson, National purchases
"These groups, not the lending Bryant, Jr. has become associated
serves
and
thereby formed the
Dealers,
an
expansion of the institutions, are the chief direct with J. J. B. Hilliard & Son, 419
^be switched to an Excess Inven¬ Membership; Dorothy G. Jenkins, basis. for
beneficiaries of the rise in interest
•
DeHaven & Townsend, Crouter & money supply.
tories Tax.
West Jefferson
Street, members
Surely, some check
"Any
effective
regulation
of rates. For interest rates are not
Bodine, Publicity; Catherine T.
on excess inventories is needed to
Reserve merely the score in a contest be¬ of the New York and-. Midwest
Hunter, H. M.Byllesby & Co., Inc., credit by the Federal
under such conditions was obvi¬ tween borrowers and lenders of Stock Exchanges. Mr. Bryant was
avoid
a
business
depression.
I Entertainment; Ann M.
Barnes,
ously impossible. The supply. of money. They are one of the most
hope each merchant will be care¬ Jenks, Kirkland &
formerly with French & Craw¬
Grubbs, Edu¬
stabilizing factors by
One is that the Excess Profits Tax

were,

Daisy

Association

Securities

and demand for money can never

ful.

cation.

balanced

fixed

interest

powerful.
which

the

value

money

is ford, Inc. of Atlanta.

Volume 177

Number 5226... The Commercial and Financial Chronicle

New York

But Private Funds
is always

great deal of talk is

Analysts

Elect Officers

Must Be Attracted
; "There

Canadian Securities
By WILLIAM J. McKAY

this

country about the importance of government aid

■Dtcause

Europe, but the public hears little if anything
about the need for private investment. Government
other

000

"Money spent by governments
special projects, while it may
help, is not spent as carefully as'
would the funds of private

William

Lurie

$734

White

director of the National Fed¬

We agree,

cieties

two-

has

trip abroad.

course,

folly to expect private funds to flow where good
business judgment suggests that they do not go—
and it is all to the good that such is the case.

Bond Club Field

Co.,

Features

Golf, Eic.
athletic

chance to display their

prowess

wide variety of com¬

petitive meets at the annual Bond

the

raise scores
during the tournament. For those
who prefer peace and quiet while
they golf, the neafby Blind Brook

tertain

sportsmen will get

Street

Wall
a

second
hole, and there will be a "kickers"
handicap prize. Hula girls will en¬

Day

and

players

Course will

available

Weeks,

was

Horn-

elected

Sturgis Macomber, of Reynolds &

spe¬

elected Secretary and
Squier, of the New

was
P.

Institute

York
on

affairs for

its

Vice-President of the Society. W.

Albert

drive

Vice-Presi¬

been

active

been

blower

longest

has

and

the past ten years.
William
R.
White,

but must add that it would

the

roughly

three

much

was

to
im¬

comparison
with
the
principal
York
Society of Security Ana¬ Commonwealth
countries
shows
lysts, Inc., at the annual meeting, that in 1950 and 1951 Canada's
succeeding Marvin Chandler of
imports of machinery were as
Reis & Chandler, Inc. Mr. Lurie
large as those of India, Australia

dent of the New York Society. He

his return from

times

elected President of the New

was

of Lord and

upon

million,

four

eration of Financial Analysts So¬

Taylor,

spending. In this way it would further democracy
rather than socialism."—Walter Hoving, President
month business

worth

Lurie, of the New
ported by any of the major west¬
York
Stock
Exchange firm of ern
European countries, the United
Paine, Webber, Jackson & Curtis,
Kingdom or the United States. A

going into
private business would be used
more
efficiently and create
more
employment and produc¬
tion
than
would
government

Hoving

Sidney

Money

enterprise.

million

machinery
and transport equipment. Of this,
machinery imports amounted to

Walter

Nova

■

directly into private busi¬

Finance,
The

Treasurer.

voied

members

following

elected

newly

were

was

the Executive Committee:

Nicho¬

and South Africa combined.

These big machinery imports re¬

flect the demand for many highly

specialized types of capital goods
arising from
Canada's
postwar
capital investment program,
ex¬
penditures on new constructioi
and

Argus

Dorsey

Re¬

search Corp., Charles B. Eddy, Jr.,
of the New York Trust Co.,
W.

David

McKnight of G. H. Walker &

machinery and equip¬

ment in Canada in the

since

the

end

amounted in

and

the

seven

years

war

have

the

total to the extraor¬

dinary figure of

$24 billion,

over

billion

$5.4

planned for
this year would bring the total tnearly $30 billion.

Important

las E. Crane of Dean Witter & Co..
Harold

on new

ports
in

capital goods im¬
it would be a mistake:

are,

the

opinion

Canadian

the "Review,"
importance of the
of

to minimize the

market

for

have

consumer

almost
production.

grown

domestic

Canadian

The

the

ness.

surprising,

"Monthly Review" of the Bank
Scotia, that Canada is
largest importer / of capital
goods in the world.
In
1951,
says
the
"Review,"
Canada imported more than $l,->
of

of it

none

expansion

industry in Canada during tne

the

.be spent in a way that furthers

goes

rapid

pointed out in the current issue of

governments tends to

socialization, because

t-.e

last decaae it is not

aid from this country

money or

(2423)

much

market

has

one

major disadvantage from the point
view

overseas

entrenched

exporters.—:

business is so

that U. S.

the fact
well

in it.

For

many-

the United States has sup¬

years

plied two-thirds or more of Can¬
ada's

imports. This state of aff
explained, of course, by
the
very
close relationship be¬
tween the two economies, and the

fairs

cultivation of

assiduous
ket

the

mar¬

Overseas ex¬
are to
enlarge

by Americans.

porters,

they

their share of the

Canadian

mar¬

ket, must be able to meet Ameri¬
can competition in deliveries and
in service as well as in price and
quality.
Against the effort necessary to
obtain
a
place in this exacting
and
highly competitive market
must be weighed its undoubted
advantages. It is one of the largest
and

varied

most

world.

markets

market

for

is
of

living

the

Its high

unrivalled.

standard

goods

capital

means

that it

opportunities for high-qual¬
ity consumer specialties.
The "Review" also points out
offers

that
to

Its

Canada

enter

the

than

easier market
United

procedures

Customs

States.

sim¬

are

pler and much less subject to de-

uncertainty.

lay and

tariffs

its

than

those

and

are

much

wealth

In general,

somewhat

the

lower

United States,
for - Common¬

countries, which have the

of the

advantage
ences.

British prefer¬

Golf equipment will Co!, George F. H. Nelson of U. S. goods. In 1951 imports of such
It should -be
emphasized, the
Club of New York Field Day, ac¬ be awarded winners of the cus¬
goods amounted to no less than
Steel and Carnegie Pension Fund,
"Review" concludes, that the Ca¬
$815 million, or 20% of total im¬
cording to an announcement made tomary hole-in-one contest.
and Joseph S. Stout of National
nadian market is one of the few
ports.
They ranged through all
today by Edgar J. Loftus, Field V, While
golfers; are
enjoying Shares Corp. 'I r
•
types of consumer purchases from important, markets in., the world
Day Chairman. The outing takes themselves on the links, tenqis f The New York
Society of Secu¬
'free
of .quantitative restrictions
automobiles and household appli¬
place Friday, June 5, at the Sleepy enthusiasts will, match skills in
rity Analysts is the largest of 12
and similar import and exchange
ances-to clothing and foods.
Hollow -Country Club in ScarsAl¬
their "own tournament;;Two such societies which comprise the
controls.
In a period when such
borough.
:;:
X j-.'J v.■ ^brackets will be drawn in the National Federation of Financial though it is perfectly true that the
barriers to the free movement of
major part of the everyday needs
Attention of Bond Club sports doubles contest and the playoffs
^Analysts Societies. Membership in
goods across international boun¬
fans
is
centered : on
the ; golf will take place in the afternoon. the New York Society, now num¬ of Canadian consumers are met
daries are the rule rather than the
tournament,
while
non-golfing Prizes go to each member of the bers over 1,800, while the Na¬ from Canadian production, there
exception, this is surely a consid¬
.exists a substantial market in
members will be given a chance
winning and runners-up teams. tional Federation has over 3,500
eration of no small moment.
cial request.

■

pitch horseshoes or play tennis

prizes. No trophy will be
awarded the winner of this year's

—all for

athletic specialty,
which
team

Club

Bond

bike race in

will

members

with comely misses

hand for the occasion.
members

can.

exercise

their

get

strenuous

vicariously through
watching.
This

will

last,

the

golfing

two-ball

four¬

concurrently with the tennis

tournament,
the

teams.

hands

All

and

•

prizes for

rate

also

winning

the past two years,

percent.

;

runners-up

membership has increased by over

/ ;

expect

enter¬

Kuhn, Loeb Arranges

all

from

bined.

will

Hula

relay

team

girls,

matches

other

the

Run

care

Private Placement

com¬

bond

with erstwhile

nobody

and

the bettors will

races,

exeept

who wins.

Richfield

The
on

June

Oil

Corporation
it had

announced that

consummated

$65,000,000

fi¬

nancing program.*
drive medal play
The sale of $40,000,000 30-year
tournament, William E. McGuirk,
Correction
3.85%
sinking
fund debentures
Jr., Golf Committee Chairman,
In The Financial Chronicle of was
made
privately to institu¬
announced. About 170 golfers will
tional
investors
May 14th it was reported that
through Kuhn,
compete for prizes awarded the
some,

selected

various

winners

categories,

headed by play for the
Bond

Club

President'
Candee

Ex-

low

for

the

net,

J. L.

Walton

re-established

had

proceeds,

Wash. Mr. Walton, al¬
is contemplating the

available

ingham,

though

re-establishment

Walton

awarded

for

low

most

low

and

net

birdies,

and

Company

for

sentative.

registered

repre¬

Co.

Loeb

Walton & Company in Bell-

Cup for match play ver¬ & Company at an early date, is
Individual prizes will be still associated with Walston &

par.

gross,

the

—

Cup for low gross, the

Cup

Christie
sus

trophies

traditional

debenture

the

$24,000,000

made

was

immediately

$16,-

and

subject to call in the
first quarter of 1954.
Bank
financing, consisting of
is

000,000

Canada for imported goods. Small

inexpensive cars,' quality clothing
and

footwear,
leather
goods,
watches,
china
and
glassware,
wines, fancy biscuits and confec¬
tions are examples ; of imported
products which enjoy

tainment from the bike races than

men

year,

contest

runs

Sedentary

whose contest "members.

Horseshoe pitchers,

$25,000,000 unsecured promissory
notes, bearing 3.25% interest and

Ira

Haupl Issues
New Inv. Letter

substan¬

Haupt & Co., Ill Broadway,
tial market in this country.
New York City, members of the
Canadian experience, the "Re¬
New York Stock Exchange, an¬
view" points out/bears out the nounce the
publication of a new
oft-demonstrated principle that an
advisory letter service. Known.as
Ira

increasing degree of industrializa¬ the Attorney's Investment Letter,
tion makes a country not a poorer it is
designed particularly for at¬
but

better

duction
it

2V2

before

was

customer

other

Canadian industrial pro¬

nations.

times
World

large

War

II;

the

country is supplying an increasing

torneys to equip them better to
advise their clients on investment

problems.
The new letter dis¬
cusses
technical matters too fre¬

quently understood only by pro¬
investors, such as the

proportion of her requirements of fessional

petroleum formula plan of investing ^or trust
accounts, advantages and disad¬
vantages of discount tax exempt
the list of new products not previ¬ bonds, stocks whose dividends are
ously made in Canada is con¬ partially or completely tax ex¬
commodities

many

—

products and synthetic yarns and
fibres, are notable examples—and

stantly lengthening.

•

Yet imports empt. etc.

payable in 19 annual installments
to
1963,
was
arranged with a
of
19 banks headed b.y
America, N. T. & S. A.,
which also acted as agent.
Notes
group

Bank

Canadian Securities

currently
interest

BONDS
Provincial,

Government,

Municipal

Corporation—External and Internal

STOCKS
Orders Executed

regular commission rates

due

and

banks

1.85%

Tel.:

DIgby 4-3870

Wires

to:

37 Wall Street, New York 5

Toronto

•"

Montreal

Ottawa

CORPORATION
has

present high level
notwithstanding heavy expendi¬
funds

the

currently budgeted

been

prepared by

our

Department, and will be

gladly

for re¬

upon

Research

forwarded

request.

finery expansion and other capital
purposes.
The

TWX: NY 1-1467
•

INTERNATIONAL UTILITIES

1956, were

new.

debenture

and

bank

financing, together with the out¬
standing
$25,000,000 -of 25-year

Burns Bros. & Denton, inc.

'■

aggre¬

bearing

paid with the new notes.
The proceeds of the financing
will
maintain
working
capital

tures

Canadian Exchanges

held

$25,000,000

gating

A Review of

2.85% .sinking, fund debentures
due in 1974, will bring Richfield's

Ross, Knowles
Members: The Toronto Stock

debt, to $90,000,000, so arranged as to terms that
it is payable in equal amounts of
,*3-000.000 for the next .30 years.
total

long-term

and The Investment Dealers' Association

330

BAY

Co.

Exchange

STREET, TORONTO,

of Canada-

,.„••••-

CANADA :

The Commercial and Financial Chronicle...

(2424)

Pearl

News About Banks

branches

Neilson Heads New York Bankers Association

Ell-

57th Convention Meeting

Ave¬

nue.

CAPITALIZATIONS

Company as Vice-President, and Warren B. Unbehend, President of the Lincoln National Bank and Trust Com¬

With the addition of $150,000 to
its

Meeting

tional Bank of Pennsauken, N. J.,

the Board of Jr., Vice-President of Union Dime,
has
enlarged
the
capital from
National City went to Ohio on May 21, to at¬
$100,000 to $250,000 effective June
Bank of New York, held on June tend The Ohio State University's
1. The increase came in part from
15th Annual Institute on Account¬
2, Granville S. Carrel, formerly
a
stock dividend of $100,000 and
ing and to receive the testimonial
an
Assistant
the sale of $50,000 of new stock;
honoring the memory of Col.
At

meeting

Directors

pointed
Vice

distinguished con¬
tributions to the advancement of
the
accounting profession." Col.
Sprague was one of the first to
quality as a Certified Public Ac¬

Presi¬

dent.

head

bank's

Public

the

June, 1929,
immediately

following

d u,at'ion

g r a,

Carrel

Granville S.

"Inquirer"
Heisler

has

fromthe

President of the Bank

been

delphia.
;

.•

>•

his

were

tional

Stanley A. Neilson

It was
the interest

/ft

Bensonhurst

Brooklyn,

from

Johnston's

stock

Mr.

advice, Mr. Livingstone was grad¬
uated from the Jefferson School
(now part of the Univer¬

of Law

Bank,' where

Chemical

with

Johnston

1929,

President of

and

named Comptroller
served in that capacity until

his

was

election

Vice-President

early in 1953.

Chemical

pany

Bank

Baxter

Com¬

Trust

elected

has

firm

Vernon

Mount

addition

brings

four of¬
23

and

Vernon

Mount

throughout Westchester County.
*

❖

According
State

State

institution

York

New

the

Mr.

Chairman.

—the

application

Bank

been

having
of

merger

State

the

into

Chatham

Bank of

its

the

State

Albany.
*

National

Bank

increased

has

Y.,

capital from $50,000 to $160,-

000, effective May 22, the increase

Dawson

Bethel, Maine; Vice-President and
trustee of Brooklyn Institute Arts

Trust

and

establish

its

Greater

Hartford

Savings Bank; Brooklyn Museum,
Pratt

and

Institute,

Brooklyn,

Y. etc.

Election

trial

Kluge-

Director of the Indus¬
of

Commerce

announced

New

May 28
by Walter E. Kolb, President. Mr.
RJugescheid is Vice-President of
was

Kennecott

Copper
♦

Union

New

Hartford National Bank

of the

Mauser,

the

for

10;

perience
Mr.
a

began
in

can

and

in
of

years

Bank

1892

1912,

Fame

University.

the

first

the

The

Walter.

banker

Accounting

Ohio

State

Williams,

1937.

after working with

the Liberty

He became Assistant Cashier of the

He is

advanced

steps to the

director of the

bank, and also
L.-Gay vert and Co. and the Super

Aldrich, the

;

Vice-President,

new

born in Fall

was

on April 3, 1907. He graduated from Yale
in the same year joined the staff of the

University
New'York

Co., advancing to its Presidency in 1951.

Unbehend, the newly elected Treasurer, is a gradu¬
Banking, Rutgers University, and is

President and

local and national

director of the

York,

business and

Albert L. Muench remains

his

submitted
stressed

the

annual

report

setting-up of

conducted

Lincoln

National Bank and

well as a director in numerous
philanthropic organizations.
\

Secretary of the Association. He
the membership, in which he

graduate public relations seminar to
University.

at Syracuse

'••;'*./■

of
of

Exhibits

cor¬

his

operating radar system on
transport and a large-

ocean

working model of a farmfactory-ranch scene will go on
display

the

for

time this
York Stock
Reception and

first

morning in the New

Public

Exchange
Exhibition

Room

the

second

system--4iis to operate. The sea
scene ahead gives the viewer the,
of- being
aboard a
Watching the radar
system, the visitor learns when
the course is clear; when danger
lurks ahead; when trouble looms
from the sky.
He is warned that,
his ship is approaching an iceberg,
or that airplanes, possible hostile,

impression

moving*fhip.

are
'

headed his way.s r
the radar searches

i
the

out

Keith

planes and icebergs, their distance
from the ship is measured.

Funston, Exchange President, an¬
nounced last night.

ex¬

exhibits, General Electric, Celan-

floor

departments.
active for

in the Ameri¬

Banking and

scale,

First

wide

department

had

Display at
Stock Exchange

N. Y.

1926, has been

other

Institute

1912,

1916 where

Trust Co. of Syracuse, New

representative

Kuhlman has been

number

1930 and

now

St. Louis,

transit

years,

ate of the Graduate School of

Broad

Street,

The animated exhibits

respectively,

sored,

are

spon¬

Sylvania

Electric Products, Inc., and Alum¬

addition

ese

these

the

Corporation,
Exchange

itself

new

Association

Railroads

American

Stock

two

the

and

have

dis¬

20 Broad
the famous
Visitors' Gallery overlooking the
1947. He will assist Carroll Bur¬ with moving figures of men and
Exchange trading floor.
ton, Vice-President, and Leonard machines at work—not to mention
More
than
1,000
visitors are
J. Schrewe, Assistant Vice-Presi¬ a flowing river and an overhead
welcomed daily by the Exchange's
dent, in covering the
State of sprinkler system actually water¬ staff of seven trained
reception¬
Missouri for First National Bank. ing a truck garden—is nine feet
ft
ft
long and high and nearly five feet ists; on average each visitor spends
about 45 minutes viewing the ex-*
<
<
Through a stock dividend of deep.
hibits and the trading floor.
/
'The three-dimensional scene in¬
$200,000 the capital of the First
The visitors may also see the
National of Gainesville, Florida, cludes trucks transporting alumi¬
Exchange's new motion picture,
was raised on
May 25, from $200,- num ingots, sheets and bars from "What Makes Us Tick," in the
000 to $400,000.
Alcoa's factory to
a
fabricating 40-seat theatre.
conventions.

the

First

was

National

inum

President of

Bank

Company of America.
Alcoa

The

Club dn

branch

in
in

area

the
the

exhibit

—

replete

plant; two farms—a modern one
with large aluminum barn,
silo
and outbuildings and an old farm
with
weather - beaten
buildings

bank, and William A.
of

the

16-acre

With A. M. Kidder & Co.
(Special

to The

Financial

Chronicle)

The bank has leased for

the

now

years

feet of
store

total

space

and

long8,000

office

building

Complete

banking facilities will be offered
new

for

Co.

Mr.

Hornstein

branch

which

completion

try's

National is

oldest

swimming pool. An outdoor drivein
movie
theatre
is
included,

was

one

banking

of the

institutions.

of .the exhibitor—as well
vital relationship of the

processes

Glore
(Special

CHICAGO, 111.
Glore

Forgan Adds

has become

plays in the
Street, which

room

opens on

•

Reception
is

open

The Exchange

Bank

front

visitor stands

the transport and in

working

and

from

3:30 p.m., Monday

Exhibition
a.m. to

10:00

through Friday.

W. C. Thornburgh
(Special

to The Financial

Adds

Chronicle)

CINCINNATI, Ohio—Robert W.
Graham

Thornburgh

now

with

Co.,

the

Union

Trust

Building..

With Marshall Company..
(Special

to The Financial Chronicle)

MILWAUKEE,

deep.
the bridge of

Chicago.

The
Room

American

Sylvania exhibit is 13 feet
long, nine feet high and five feet

previously with the First National
of

The

with

investor

industry.

Robert H.

—

affiliated

the

American

to The Financial Chroniole)

coun¬

pictures depict plants and

where

formerly with Security Associates.

the Glore, Forgan & Co., 135 South
early Fall. Founded in 1792, Hart¬ La Salle Street. Mr. Glore was

ford

Western

at the corner

under construction.

the

Kidder &

facilities, and a
ranch
complete
with

outmoded

and

PARK, Fla.—Louis A.
suburban
shopping development
Hornstein and Philip
D. Stokes
at
the
corner
of
Albany Road
have joined
the staff of A. M.
(U. S. Route 44) and Main Street.

scheduled

elected
of

sixth

builder

accountants,
Hall

who

career

director

Warren B.

WINTER

square

Savings

from

dent

Conn, will

Bishop's Corner Shopping Center,

and one of the country's foremost

bank

Missouri, it was announced
recently by. William A. McDon¬
nell,- the bank's President.
Mr.

Kuhlman,

Treasurer, Warren

Co. of Hartford,

term

♦

Sprague, President

Dime

York,

Corporation.

Charles Ezra
of

The

jointly by Ostrom Enders, Presi¬

Richard

Bank

York

Trust

for

National

and

River, Mass.
■

in West Hartford, it is announced
*

scheid

Bank

has been appointed a special

respondent

Gowanda,

Hulbert S.

three occasions represented the St.
Louis
Chapter at national AIB

Clark, N. Y. C.; director of Globe

Sciences, trustee of Brooklyn

National

and

Kuhlman, manager
bookkeeping department

First

returned

corporations.

the

Harold
the

Muench

Service Co., Buick dealers, and holds various positions with other

•

President

Currency,, at

Company

& having been brought about by the
sale of $60,000 of new stock, and
Newspaper Co., Boston; President a stock dividend of $50,000.
*
*
*
and
trustee
of Gould Academy,
Davidson,

*' r

office of President in

branch office in Chatham, N. Y.

❖

member of the law

Bank

Ohio,

the New York Trust Co.,

National Bank in New York.

bookkeeping manager since 1951.
application
Prior to that he served as super-r
May 26 for permission to open
visor in

Albany, N. Y„ filed
on

Department

Deposit

Safe

the

Banking

to the

Davidson

Jackson,

Davidson

The

proposed

York

New

Trust Company

Ad¬
visory Board of its 30 Broad Street
The
Home
Office, it is
announced by N. Ellenville, N.
Sidney

zation. '

>!'•

office

June

fices

Office

the

Mr. Nielson was born in
Buffalo, N. Y., on Jan. 2, 1890. He
served with the Marine Trust Co. of Buffalo from 1908-10 to which

Bank

made, it is stated, incident to the
*

the

Albert

Unbehend, President of the Lincoln National Bank and Trust
Co., Syracuse, N. Y.
,.
,

was

County Trust's totals to

as manager

Y.,

County

drive-in

Mr.

of Chemical's
Analysis
Department.
He
was
appointed Auditor in 1919 and
Assistant Comptroller in 1924. In

starting

of'

Comptroller

The

then Vice-President,'

was

the capital of the

White Plains, N. Y., opened a new

went

Livingstone

Mr.

1918,

Bulletin

-f

National

sity of Louisville.) in 1917, and he
also studied higher accounting and
business administration. On" Feb.
18,

Painesville,

Warren B. Unbehend

Washington
which reports
the
of
capital as $400,000 and the surplus
increased
as
$600,000. ' Glick
Schultz
is
$500,000 to $600,000 by a
President of the primary organi¬
dividend of $100,000.

H. Johnston, then Cash¬
who suggested thai
undertake a course of night

Following

As of May 29

of Percy

ier at Citizens,

study.

Hulbert S. Aldrich

H. Watson, President of the First National Bank of New Rochelle.
The Convention elected as Vice-President, Hulbert S. Aldrich,

Philosophy of Accounts." His is
reported in the May 18 weekly
bond tables are still in use today.

Ky.

Louisville,

there that he attracted

Bank

"The

National

Citizens

the

senger

Stanley A. Neilson,
He succeeds Ernest

Cen-

Bank

year,

(N. Y.).

tral-Penn National Bank of Phila¬

banking career in 1913 as a mes¬

ensuing

of Gowanda

Philadelphia
Budd
appointed an

University of
■
;
Pittsburgh "Post Gazette" of
Pennsylyania with a BS, Degree, Secretary of Union Dime Savings
May 26, which also stated: "Both
and rotated through various di¬ Bank and later was made Treas^
have been assistant cashiers. Rob¬
visions and branches of the bank. urer.
In
1892
he
was
elected
ert M. Ingram, of the Northside
Prior
to
World War II, during President, which post he held
office, was elected Assistant
which he served four years as a until his death in 1912. From 1904
Secretary."
,
Colonel
and
Chief of Military to 1905 he was President of the
#
^
«
Personnel
for
the
U. S.
Air Savings Bank Division, of the
As of May 15 the Peoples Na¬
Forces
in
Europe,
he
was American Bankers Association. He
tional Bank of Washington,* Pa.,
associated with the bank's West¬ also made important contributions
with
common
capital
stock
of
ern
District of the Domestic Di¬ to
savings
bank
bookkeeping
$100,000, was placed in voluntary
vision.
\
»
through the improved systems he
ft
sis
ft
liquidation, having been absorbed
devised.
The
inventer
of
the
the
Peoples-First
National
Leonard
E.
Livingstone, who "Automalothotype," he failed to by
Bank & Trust Co. of Pittsburgh,
ranks among the deans of Bank patent it, and this forerunner of
Pa.
Comptrollers, retired on May 29 banking
machinery was soon
;
*
*
ft
:
as
Vice-President
of
Chemicaji copied. The Colonel wrote a num¬
The issuance on May 14 of a
Bank & Trust Company of New ber of books on banking and ac¬
charter for the Lake County Na¬
York. Mr. Livingstone started his counting, his best known being
.

President for the

30/ C.

May

Vice-President

Assistant

board the S.S. "Bermuda," beginning May 24, the

it-

the

tion elected

preparation of the
Charles
M.
Borland,
of the
first CPA Law and his service
Springdale office of Peoples First
on
the first State Board of Ex¬ National
Bank
& s Trust
Co. of
aminers. He was one of the found¬
Pittsburgh, has been elected an
ers in 1900 of the Schoolof Com-*
Assistant
Vice-President
of - the
merce,
Accounts and Finance of bank, with John M. Snodgrass of
New York University, and taught
the West View office, receiving
night school there until his death. the same promotion, according to
In ..1877
Col.
Sprague
became the

tions

City

National

According

contribu¬

ably his most important

partment. Mr.
Carrel joined

prob¬

accountants,

countant.

De¬

Relations

made

"having

a--

of his

Sprague. The citation spoke

ap-

was

Treasurer.

57th Annual Convention of the New York State Bankers Associa¬

The

Vice-Presi¬

dent,

of Syracuse,

pany

Na¬

Pennsauken

the

capital

names

York Trust
j

board the S.S. "Bermuda"

Stanley A. Neilson, President of the Bank of Gowanda, N. Y.
as
President; also elects Hulbert S. Aldrich, President New

is to be

branch

continued at 966 Farmington

Bankers

and

REVISED

and

wood, East Hartford, at two other
locations in Hartford and at West

Hartford, which

CONSOLIDATIONS
NEW BRANCHES
OFFICERS, ETC.

NEW

Main

Hartford,

Streets,
maintains

now

office

main

Its

Thursday, June 4, 1953

marine radar

DeSwarte

shall

now

Wis.—Lawrence
with The Mar¬

Company, 765 North Water

Street.

Volume 177 ;

Continued

Number 5226

(2425)

The Commercial and Financial Chronicle

...

allies

from page 16

•

gradually
tariff

though

they

some

policies

reluctant

cases

what

We our¬

very
to do so.

are

that

finance

applies
certain extent because Great

policy rather far in that
try not merely to prevent
materials
needed
for
the

our

ultimately

that

This Week
Current

should

come

reasons

that I

have tried to out¬

basis.

trade

and

raw

ing enterprises in Russia and her
satellites.

line.

sometimes

sure,

Two companies are
capital by the sale of
•

cations

in spite of the

latter

export

ones

part of that which has been sold
them to China, Korea and else¬

where.
not

Many
that

reason

Now

that.

friends chafe

our

restrictions

these

allies are

our

squeamish

'the

be¬

not

they are any more anxious
than we are to furnish our enecause

/mies,

active

with

potential,

with which

weapons

kill our

people, but is due to an histori¬
cal fact, namely that trade is a
.

^curiously hardy animal.

Do you

recall
from
your
school
days
"reading in Caesar and Tacitus that

'apparently, / the

trader

Roman
boundaries

hostile

crossed

even

stand

many-sided

how

very

will

correct

find

said

there isn't any one right way,

are

direction

and whichever

•.

Vincent M.

certain difficulties.

face

shall

take,

old
and

shall

men

-I ' ■

it is

sense,

Most of the capital

•

Doherty

what we ought
first place,/to

the

pal bonds. Mr.

Doherty

govern¬ recently been
ing imports into this country and, with//J.
R.
wars
there
were
some
curious have everything open and above- W i 11 i s t o
n,
occurrences.' It has generally been board and if we wish to shut out
Bruce /&
Co.
stated—though I have never in¬ watches and cheese, let us do it in charge of
vestigated the truth of this—that frankly and not in a round-about the municipal
the British supplied the Germans way.
Then also we should not department in
with certain necessary materials try
to
make the basis of our
the
Miami
our

the Germans in turn let action merely the question as to
"the British have chemicals which whether the lowering of tariffs
'were particularly needed.
Nat- will affect harmfully certain in¬
dustries in this,country; at least

this

^tral during the first world war.
.Obviously this was with the more
or
less
tacit connivance of the

them¬

British

the

and

,Germans

/V'-j,/ /."

selves.

case

every

has

been

Vincent M. Doherty

'•••.

■

Palm Beach.

West

mind

finished, in

it merely

sense

trade

route
the

had' existed /between

that

Canal

Suez

normal

the

restored

the

when

that

.true

This

present
possible for for¬

Occident and the Orient in classi¬
times.

cal

Cape

The

around

route

the

Hope, which had
necessity owing to the

Good

become

-closing

the

highway

former

*by the rise of the Turkish Empire,
/soon was abandoned.
So likewise
the
"

trade

natural

-West.

the

between

been

Europe
and

East

has
the

the

long run a country
like Germany can hardly develop
•satisfactorily economically, unless
the
great
commercial highways
'

along

Baltic

the

Danube

'extent
r

for

again

are

without

commerce

drance.

and

down

the

Germany, and to a large
even
Great Britain, was

many

those of-the rest of the world,

and

...

receiving

"coal, oils,

and

considerable

•

extent

Balkans.

the

Wall i Watt, Inc.

Formed in Now York

whether

doubt

this

our.

;

The

been

un-

country.

watches,

good as the
Swiss watches, and watchmaking,
large,

and

said and done, is not

all is

when

are

major industry in this country.
have selected watches as an

should

whether

the question
should prevent ' the
say

their

limit

Swiss watches or
be

should

number

Let

warn

shutting off perfectly
we
are
in¬

commerce,

difficulties

the
the

erence

forces

many

dollar

gap,

the

ref-

for

European

countries to buy much more from

{us

than: they normally would or

should.

While straight fire has

Companies with large common stock holdings have generally
fared much better than others. For one thing they had adequate
s commitment in equities.
In
Second jjlace the rise in stock values over the past ten years
added considerable to capital funds and helped to offset losses

capital in the first place to permit
the
has

■

Watt Inc., at
York City,

New

Street,

Pine

Watt

company,

determined

fire and casualty companies.

The tabulation below is not nec¬
or inadequacy of capital funds
of any particular company. Such a conclusion would have to take
into consideration other factors such as underwriting and invest¬
ment policies.
However, it is interesting as a starting point and
may provide a clue as to possible future financing.
essarily indicative of the adequacy

Dec.

early in June.

•

Written

per

Funds

1952

Insurance.

Aetna Fire

parent

/The
office

Canadian

fices

firm,

has its head

and branch of¬
William, Port Ar¬

Toronto

Fort

thur and London,

Ontario.

The

affiliate

new

bond markets.
Watt
its

President, James A. Gardner,

partner of the parent firm. It
will be under the management of
a

by (a) whether the
industry in the country as Alfred M. Erlich, recently man¬
-a
whole is so important that we, ager
of the Foreign Securities
must protect it regardless of the Department of Hayden, Stone &
harm
we
may
be; doing to. a Co/'Mr. Erlich is a specialist in

2.24

,■

4.34
2.03

1.75
1.30
0.67

146,155,000
143,540,000
67,718,000

2.84

1.61

2.07

312,-360,000
214,047,000
226,861,000
75,486,000
8,624,000
43,195,000
27,873,000
73,210,000
104,730,000
23,296,000
56,920,000

_____—

169,708,000
20,473,000

27,477,000

Westchester Fire Insur.—

1.97

135,977,000

—

_——

Dollar

Capital

3.32

72,238,000
23,856,000
43,231,000
60,682.000
40,272,000

—

Watt Inc. will have as

$124,673,000
123,519,000

Surety $63,385,000
55,231,000
American Automobile
21,778,000
American Fidelity & Cas.
5,501,000
American Surety »■/:
21,277,000
Automobile Insurance
34,584,000
Boston Insurance
30,874,000
Continental Insurance
201,821,000
Fireman's Fund
90,844,000
Firemen's Ins. (Newark)
50,520,000
Glens Falls Insurance
32,758,000
Hartford Fire
196,403,000
Home Insurance
169,803,000
Insurance Co. of No. Am. 260,147,000
New Amsterdam Casualty
21.898,000
Northeastern Insur. Co.—
2,625,000
Ohio Casualty
13,271,000
Pacific Indemnity
11,835,000
Phoenix Insurance
82,076,000
St. Paul Fire & Marine69,813,000
10,549,000
Security Insur. of N. H.__
Standard Accident
21,249,000
U. S. Fidelity & Guaranty
76,822,000

Aetna Casualty &

—

founded 45 years ago,

Written

Net Premiums

31, 1952

Capital

affiliate

watch

this country, do we have to foster
it

creasing

the opening of an

nounce

will offer
example because, as it happens, service in Canadian securities to
there
is
another aspect to
the U. S. brokers, dealers and insti¬
It will not deal with the
manufacture of watches and that1 tutions.
Through private
is it probably trains people for general public.
wires it will be able to furnish a
making
precision instruments
complete service to all leading
which are badly needed in time"
stock
exchanges and
of war and in our defense efforts. Canadian

order

in.

Formation of the new affiliate
people /in was previously reported in the

train

again that I am making my
certain methods and1 skills nec¬
a pretty broad brush
for our defense?
There
and that what I am saying may essary
be true in an overall sense, but ■'are industries in this country of
such a magnitude that we cannot
could be shown to be wrong in
detail.,,. By

ionablv

oues

has

market

principal

strokes with

natural

very

country very friendly to us.

underwriting profits generated during: the period. Thus the
underwriting margin of 5% has in effect been reduced to
approximately 2%% by existing taxes.
A second factor in this connection has been the record of

ous

foreign exchange and arbitrage,
needed friendly country, and (b) even if
the
watch
industry is>by and and is well known in New York
supply to a
financial circles.
from Russia /large not of major importance in

-you
-

the

1.59

1.26

0.87
3.45
3.28
v

3.25

2.36
0.89

1.50
2.21
2.68
2.21
0.75

in J- turn

food

and

one

chief industries of Switzerland,

opened
to
let
or
hin¬ importation

centuries the entrepot
'for East Europe, sending there its
own maunfactured goods as well

•

watches

ago

general observations, it is interesting to note
the amount of business written for each dollar of capital by vari¬

very

immemorial.

.time

.was

Whereas prior to ten
corporation taxes enabled companies to retain a large
part of underwriting earnings, the imposition of wartime rates and
the high levies prevailing currently have absorbed a large portion

years

■

been the change in tax laws.

With these few

fact

that

considerations to
of these has

several factors have altered the foregoing
important degree. One of the most important

years

from underwriting, if any.

borne in eign enterprises to compete suc¬
My
difficult cessfully in this country.
Watt & Watt, members of the
?to change for long the great trade proposal would be to take each Investment Dealers' Association of
routes
of
the
world
which
in case by itself. Let us look at the Canada and of the Toronto and
watch situation. The maunfacture
i many
cases
have existed since
Montreal
Stock Exchanges, an¬
Another

recent

siderably less than the historical percentage of 75% of investment
earnings being distributed to stockholders.

in the munici-

the

that

makes

tariff

rates

found

fairly profitable, some of the other lines, including automo¬
bile, have produced sizable underwriting losses. To aggravate the
problem, these losses have occurred at a time when the capital
needs of the industry were increasing.
This has resulted in conservative dividend policies with con¬

Doherty,

who

practice supported
by
proposals made in Congress
compelling the Executive to

raise: tariff

provide capital for the growth of the business.

Mr.

present

Underwriting profits

80%.

been

some

to 75%

selling to that should not be the dniy^con¬ 'p>al business since 1914, /formerly
Scandinavian sideration, and I do not think the had his own investment/business

.Holland
or > the
countries, all of which were neu-r

underwriting operations in recent years.

office.

Beach

by direct

not

was

! trade, but was done by

retained together with the excess of investment earnings to

•

last two great world

#while

jurally,

income, distributing

were

prewar

has

While the Romans were waging simplify the regulations
war? So in

ment

that

say

is,

funds for this expansion of premium writ¬

ings has been generated internally.- Historically, the general policy
of insurance companies has been to pay dividends out of invest¬

Opens Own Office

should

which have made

individuals more conscious of insurance.

choice between
evils.
However, I should like to
end up by showing you, at least /
a
MIAMI, Fla. — Vincent M.
sign post pointing to the road
Doherty has opened offices at
along which I think we should
5 6 0 0
South¬
travel.
It
is,
as
I
have beentrying to- show, a most compli-/ west 74th St.
cated
problem
which to some to act as deal¬
extent
only time can solve.
I er in munici¬
In

years,

states have enacted financial responsibility laws

young

your

may

price level today is substantially higher than in
meaning that a larger amount of insurance is re¬
quired to protect the same unit of property. Additionally many

earlier

shall see visions."

men

The probabilities

answer.

/"your

dreams

dream

absolutely

Current indi¬

other companies

the

However,

it may

which

ideals

those

therefore,

difficult,
to

is and

that additional financing by

are

larger capital requirements
growing business. The vol¬
ume
of premium/ writings has gained not only because of the
increase in the value of property, but also, the number and types
of risks which are now insurable are substantially higher than a
decade ago. For example, the number of automobiles on the road
is close to 50% greater than in 1940. This alone would mean a siz¬
able increase in business if rates and values remained unchanged.

pharmaceutical products ing me, in view of what I have more trade between nations. Per-,
our
enemies not been saying: "What is it that you sonally, I believe the day is still
far off when the world, or any
merely by forbidding direct ship¬ advise?" As a matter of fact, I
ment to them, but also by limit¬ have not really been
trying to major part of it, will become
ing the amount which our people present a solution of the problem, politically or economically one,
rather
to have you under¬ but I would agree that it is one
may supply to friendly countries but
these

in the process of acquiring additional
stock. Several other institutions

One of the primary reasons for the
is that fire and casualty insurance is a

reaching

lest

now

common

undertaken in the coming months.

ample,
from

Insurance Stocks

financing

have taken similar action since the first of the year.

In the long run,

that

—

prospective

interest to investors and holders of insurance shares.

and I speak
wheeze of
manufacture of arms and ammu¬ they lost their money, just as we Lord Keynes, we ourselves and
did in Latin America, but then certainly our allies will be better
nition from reaching our oppo¬
off if we can, without injury to
nents but, in addition, we seek to that is part of the game.
encourage
more
and
You will be quite right in ask¬ ourselves,
"prevent such articles as, for ex¬
we

and

by insurance companies,
including the generating circumstances, is a matter of considerable

less on a free
I
don't
think
it
suddenly for 1 the

get

may

Germany and also
France earned much from financ¬

laudable

lower

cannot

and change our reg¬

E. JOHNSON

By H.

made whether

rates

ulations

been saying

have

Britain

carried this perfectly

selves have

also

but

merce

even

should

studies

"Tiade-Not Aid" Problem?
same

Bank and Insurance Stocks

formulate plans for many
ahead, I should say that

up,

years

the

trade rather
: If
it ,were

aid.

possible/ which it may not be in
view of our whole political set¬

Can We Solve the
follow

able

receive

than

isn't

only

com¬

them

allow
have
of

and

suffer,
there

indicated,

are

those

are

should

termining
against

the considerations
borne
our

our

mind

'tariff, policy

,.:desire

aid

de¬
as
our

of INDIA, LIMITED
Bankers
,

the

Government- in

-Kenya Colony and
Head

Office:

26,

FIRE & CASUALTY

INSURANCE STOCK

Uganda

1952 Earnings

Bishopsgate,

London, E. C. 2

E. I. Gardiner Joins

Branches

J. A.

Hogle & Co.
Chronicle)

(Special to The Financial

SAN

DIEGO,

Gardiner

has

Calif.—Edwin X.
associated

become

& Co., 1030 Sixth
Gardiner was pre¬

with J. A. Hogle
Avenue.

viously
6 Co. '

Mr.
an

officer of R. E. Evans
■

•

India,

Pakistan,

Circular

Ceylon,1

Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Burma,

that

NATIONAL BANK

"Chronicle" of May 21.

others

importance needed for
defense.
I should say that

major

our

Comparison
Request

Aden,
land

Protectorate.

Laird, Bissell & Meeds
Members New York

Capital——£4,562,500
Paid-up
Capital
£2,281,250
Reserve Fund-.—
£3,675,000

Authorised

Members

120

N. Y.

7-3500
Teletype—NY 1-1248-49

Telephone: BArciay

description of
banking and exchange business.

The Bank conducts every

Trusteeships and Executorships
also undertaken

Stock Exchange
Exchange

American Stock

BROADWAY, NEW YORK 5,
Bell

(L.

Gibbs,

Manager

Trading Dept.)

Specialists in Bank Stocks

22 17

(2426)

Woild Fund's Position

f ?
port from the other .governments
.'! i 3-?oi' the .iEuro^eah-'Baynieii.tfr' Unibn:
t

On occasions'when the British
thorities

On Currency
By PAUL

Commenting

inite

Fund to nations

Fund's

can

involved may

are

way,

however, to assist Britain in
enforcement

rules.

the

Many loopholes have been stopped,
however, but others came into

existence in their

would

otherwise

under

system of convertibility.
The only way to approach the
problem
effectively
would
be

Europe of securing dollars by buying in Sterling Area and
reselling in United States.

the early months of
1952 Mr. through the creation of conditions
Booth's $3,200 million would have ^
which convertibility would
Chamber of Commerce in Vienna proved to be highly
inadequate ? and a chance of operating '^ven
on May 20, Mr. Ivar Booth, Manfor stemming the tide. Should ln *he absence of support by the
aging Director there be a "peace slump" it would
1ntemational Monetary Fund or
of
the Inter- inevitably produce similar effects by the United States.
This end
LONDON

International

the

national

Monetary

Fund,
ised

prom-

full

his

support
member

gov-

ernments

the Fund

who

will

make

effort

re-

store the

con-

vertibility

their currency,

His
Dr. Paul

c.iu*ik

statement

charac-

was

could only be achieved through

balances of payments.

the elimination of the dollar gap.
Mr. Booth's statement is open to ^ether through an increase of
criticism, however, from a purely the dollar price of gold or through
factual basis. He omitted to men- a m°re liberal American import
tion the fact that under its exist- Policy. Under any other condiing rules the International Mone- Uons. the
British Government
tary Fund would not be in a posi- w°uld be asking for trouble if it
tion to use more than a small part w^e to proceed with convertAll this is a matter of opinion.

of its resources in any one year,
According to the statutes of the

■

D'.^r'
Fund it is not entitled to grant DdCIIG
facilities to member governments
in

excess

of 25%

Per annum.

of their quota
The operation of this

by a
optimism

Partner

Henderson, formerly

partner of the firm

(If bOa AultlltS

Henderson
Ralph

rule would substantially reduce
remarkable
degree of
the amount which the Fund could
about the ability of the Fund to Place at the disposal of its memterized

discussion of recent Treas-v

experience is the

of the

out

son

necessity of a balanced budget for
economic stability in this situa¬

National City Bank of New York,

tion."

points out that in its

uation

new

which

refund¬

forced

quarters,

some

excessive

rates.

According

;
Underwritten by Blyth

what,

pay

Two

considered

interest

the

"Bank

Letter":

Addressing the

Eng

o'f

Congress

says

ury financing, the June issue of
the "Monthly Bank Letter" of the

ing and borrowing operations, the
There is Treasury is facing a difficult sit¬

place.

justification for assuming that

City Bask. ofNew York's "Monthly Barft Letter

offering excessive rates on new-bor¬
rowings are not justified, since demoralized money market
conditions in May offered no alternative.

governments

the

reserve

National

such

about

these

reluctantly to take
They do not go out of their

action.

long way toward maintaining exchange
stability, its rules permit only piecemeal aid, since it is pro¬
hibited from granting facilities to member governments in
excess of 25% of their quota per annum.
Accuses Western
present

information

Treasury Facing Difficult

criticisms that; Treasury is

Governments def¬

whose nationals

vertibility, Dr. Einzig contends although the

au¬

feel compelled

promised support of International Monetary
endeavoring to restore their currency s con¬

transactions

EINZIG

V'.i *•*/*■({.*•-

fr i

i-V

able to communicate

are

Continental

■*/

observers

expressed

the

feeling

that the Treasury, faced
by criticisms that it has been of¬

Co.

Service

Public

The

In¬

diana, Inc., yesterday (June 3) of¬
fered

"Some

Utility Offers

its

common

additional

301

holders

rights to subscribe for 472,-

stock

common

for

stock at the rate of one share

eight shares held of record
June 2, 1953. The stock is priced
at $31.50 per share.
Transferable
down to more normal proportions warrants
expire
at . 3:00
p.m.
with a 2%% one-year rate.
On (CDT) on June 17, 1953.- Blyth &
paper, however, in terms of the Co. Inc., heads a group of banking
general structure of yields on gov¬ firms which will purchase the un¬
fering excessive rates on new bor¬
rowings, had cut the rate too fine
and might have held the attrition

securities

ernment

2%% looked like

the

time,

fully adequate

rate.

one-year

every

shares.

subscribed

Blyth & Co. Inc. also headed a
group offering publicly yesterday
:

shares of 4.90 % cumula¬
stock, priced at par
possible
situation — a
run
for ($25 per share).' The' preferred
stock; is
redeemable
at
prices
liquidity based on fears that the
from : $26.25
per
share
Federal Reserve authorities might ranging
allow loan funds to become en¬ through May 1, 1958 at $25 per
share after May 1/lft78, plus un¬
tirely unavailable, or prohibitively
paid
accrued
dividends in
all
costly, in the months ahead.
"Actually the Treasury was con¬
fronted by a difficult if not im¬

"While the 2%% certificates due

of Collier-

600,000

tive preferred

cases..

Proceeds of both issues will be

June

1, 1954 went begging for
Norris-Quinlan, members of the
used to finance new construction
render effective assistance.
This ber countries immediately
after Montreal Stock Exchange, .has buyers, there was a strong demand estimated to cost $118,000,000 for
for Treasury bills at rates below
came
as
a
joined
Bache
complete surprise be- the restoration of convertibility,
the period 1953-1955. Major item
& Co., mem¬ 2V8% for August, 1953 maturities in this construction will be the
cause during recent months there
Us assistance would be a mere
all the way down to : 1V2 % for
has been a growing realization of drop
bers of the N.
in the ocean. Before the
completion of the new Wabash
June maturities.
The 2%s could
the difficulties in the way of re- Fund could claim to be able to
Y. Stock Ex¬
River electric generating station
easily have been underwritten by which will have a total
storing convertibility in the near assist its members effectively it
change, To¬
„

would

future.

There

nothing

new

course

necessary

eliminate

ronto

the 25% limit,

There is altogether far too much,
wishful thinking among those who
convertibility of cur- are anxious to see an early restorencies.
Even though
the Fund ration of convertibility. The Brithas been far. from generous with *sh Government, in spite of the
its
assistance
since
1948,
there negative response of the United >
the

declaration

the

Fund's

in*the

willingness to assist

other

resto-

could

never

towards

that,

serious attempt

restoring

it would

doubt

any

there be

convertibility,

receive support from the
the limits of its ca-

leading

stock

ration of the

should

Stock

Exchange,, and
! an d

the

banks

serve

rate

count

advance

entered

the equation as well as,

commodity
haps
,'.exchanges,. as
-

resident
n e

States Government to the Cornmonwealth Economic Plan, is pro-,
ceeding on the, assumption that;,
before very long the Washington Ralnh

against increased bor¬
from the Federal Re¬
but here possibilities of dis¬

rowings

part-

and

into
per¬

generating

capacity of 485,000 kilowatts./
Public

duces and sells

690

Service

towns in north

i. in. their ing

722

southern' Indiana.

sale

banks

that

borrow

too

cities

and

central, central and

eral

pro¬

electricity to 328,-

customers

importantly, the Fed¬
Reserve's policy of complain¬
more

Indiana

The

company

also supplies

electricity at whole¬
municipal utilities, 31
electric membership corpo¬
44

much
or
too
regularly;
These rural
criticisms, however well justified rations and three "other; electric
they may have been in any par¬ utility companies.
•;
^ ; ' >
Street, :it has
ticular case, created apprehensions
Total operating revenues for the
b e e n
a ft-

Toronto office,

36 M ej i n d a

Henderson

that the
Federal
Administration will change its
.
Reserve, after company in 1952 exceeded $54,nounced.
A
mind and will be willing to lend nktiVe "Canadian Mr Henderson policing discounts down,■-.< might 000,000 and net income was
$10,Us support to the Plan. On this natlye uanaaian, Mr. nenaerso
follow a narrowly restrictive pol¬
009,000.
•
iholding back during the last iCive assumption bilateral negotiations Sraciuated from-the University of icy this autumn when seasonallyCash dividends on the common
years is that it has bee^i anxious have been pursued with a numToronto^ with a B-A. degree in expanding credit requirements stock were paid at the rate of 40
Fund

within

pacity.

:ations

Indeed

why

its

reserve

of the exoian-

one

the

Fund' has

been

for

resources

pre-

ber

of Continental

countries

J®?^ ftnandal^fleH'^^Lcomim!

cisely such purpose instead of frit- ensure that if
and when the
tering them away on piecemeal United States is prepared to, back
assistance

before

there is

at-

tempt to return to convertibility,
What
is
astonishing
is: Mr.
Rooth's optimism about the adequacy

the

Fund's

gold and convertible
the

purpose

ibility. )The
serves

of
for

reserves

assisting convert-

amount

now

million.

holding

little

such

over

re-

$3,200

Mr. Rooth remarked that

opinions

department of the Canada Life

this scheme it could be applied

without much delay.
of these negotiations

^suranre ta.

The object

Squadron Leader,

to secure in this respect. It is dif-

ficuU to imagine, however, any
amount of
supplementary reserves safeguards that could possibly be
necessary to support general con- effective so long as a worldwide
vertibility but $3,200 million was scarcity of dollars continues to,
certainly a large part of what prevail. It is reasonable to assume
would be needed for this
purpose. that notwithstanding any underHe .-appears
to
have forgotten, takings to the contrary, a number
might

Britain,, the
well

was

Fund's

present

amount"- of

excess

holding

and convertible currency

the

were

dollars poured into Europe
by the
-United States under the Marshall
Plan able to

bring

any

lasting

re-

It would be unwarranted
optimto suppose that conditions are

ism

now
a

less unsettled than they were

few years ago, so that the Fund's
would

reserve

long way towards
maintaining international
exchange stability. Within the last
two

penenced

some

the

countries
a

spectacular

fluepay-

reserves

vertibility been

of various

disappeared

months.

ing the second

annuallv'June

inclusive

Had

con-

operation, dur-

half

1951

and

the

United

States.

The

result

that British sales to the American

market are reduced to

corre-

themselves

for

second

requirements.'

half-year

the following

fashion

take

slack created

eleGtnc

new

fered $3,090,000 of Wisconsin Cen¬
Thereafter,
apart
from >tempo¬ tral Ry., 4% equipment trust cer¬
rary loans to the Treasury during tificates, series D, maturing semi¬
the March tax period, the Federal annually Dec. 1, 1953 to June 1,
Reserve' maintained1 its holdings 1968, inclusive.;. Subject to court
approval and to the authorization
currency.

ma-

Inc

The

right purchases of. Treasury bills

and

sprl.rprl

standard-gauge

also

and

holdings

added"

under

$125 > million
repurchase

S5 24n o

switcldne

Diesel

locomot

switching

ves

locomotives,

•

fThese

May. open market
.

-Treasury

easier' for

cost

not

Trin

Halsey,

Stuart
^

off bring are

the authorities

steel

pur¬

the decline

their

reduce

the

suggestedthat
not unmind¬

were

less

than

and 350 all steel box-

half-year

second

quirements.

■

re¬

Co.;

are—R.

Freeman

Wells
Co.

W.
&
-

the

•<

offering

Pressprich -&
Co.; McMaster
Co.; - Mullaney,
.

Co.; and F. S. Yantis &

-----

•

Williams &

tion:

Newburger, Loeb Adds
Newburger, Loeb & Co.,

-•

"Assuredly, the Federal Reserve
authorities have
a

cars.

Other members of

practical problems of

R- w- Pressprich-& Co.; Baxter,
Co.; Freeman & Co.;

secured

$3,862,500:-six
locomotives; 100 all
general service; gondola cars

yields, made it ;group

bill

banks

'borrowings,- and.

financing

cars.

with

Diesel-electric

chases contributed to
in

issue

following new standard-gauge
railroad equipment- estimated to

;

and 12 caboose
Associated

Commerce Com¬

the

con¬

tract.

ful

of the Interstate

mission,
the. certificates
were
of April: :During May the Federal priced to yield. from 3% to 4%
•
,
Reserve made $157 million out¬ •according'to maturity.

*wo baggage cars;-six chair cars
•

Halsey, Stuart & Co. Inc. headed
syndicate which on May 29 of¬

Hutchinson

[e^ ?han
eifctric

Ry.

Equipments Offered

Treasury bill portfolio in normal

"f'S'^

•

Wisconsin Central

-..

1949

market operations, the
Federal Reserve early this year
released
$900
million
from
its

Priced to yield from Z% to 3.80%-,
aCoordin/tn mat„ritv --Issuance

share per quarter from
to March 1, 1950.
Since then quarterly dividends of
45 cents per share have been paid.
per

tially unchanged through the close

15' 1954

& Co

cents

June

"On open

of government securities substan¬

made Mav-28

was

HXv Stua7t

United States and redirect them to

virtually
few

It has become

put stress on gaining, liquidity;,
keeping investments short, tight¬
ening up on loans, and readying

Chicago

of $3 930 000

^^Kmmission

paper safeguards. Even the existing limited convertibility within
the European Payments Union is
grossly and systematically misused by countries of the Union to
secure dollars at Britain's expense;

balances

ex-

Very large gold and for-

eign exchange

jggg

to make banks

offering

The" British
authorities
had of the certificates was subiect to
enough - practical
experience- of the authorization of the Interstate
this kind to realize the futility of

popular practice
for Western European countries
to buy British or Sterling Area
goods which have markets in, the

three years the world

tuations
raents.

Equipments Offered
'

turing

of,'gold 'hat end their goods would be
reserves, dumped
on Britain, while they

monff?CtNaUy eXhatUH tenur 3 few, ^ooHeofZZh0^s°Ura^ ^
months.
Nor
the billions of import Ot British goods.
:

Chic. & North Western

equipment -trust "certificates,

sterling for the.sole purpose
of, converting it into dollars.; To
care

The effect of such

was

by the seasonal return of

the

.$ie .'dollar loan of Qf countries wo.u d endegvpr to se-

i*rtiw*ever'
1946
to
which

about

vary

Collier-Norris^Qu^an.ihiM4,.he

is to make
that the countries of Western

remained- with the organization
Europe would- not. then misuse until his present association with
the convertibility of sterling for Bache & Co., except for three
their own purposes. No informa- years of service with the Royal
tion is available about the nature Canadian Air Force, from which
of the safeguards Britain wishes he returned with the rank of

sure

have to be met.

apprehensions

difficult situa¬

high-flying business boom,

bers of the

New

York

mem¬

Stock

Ex¬

change and other Exchanges,

an¬

nounce

that Sol Kahn, Registered

Gregory & Son, Inc.:- The Illinois that demands the brakes of credit

Representative,- has

Co.; Wm, E. Pollock & Co.. Inc.;

organization at the firm's branch

restraint,

complicated

heavy

fighting persistently" against this McMaster Hutchinson & Co.; and public debt maturities and a siz¬
practice. They received scant sup- F. S. Yantis & Co.
able Federal deficit. The best les¬

joined

their

office at 57 West 57th Street, New

York City.

.Volum«-X77

observers^ ;and; was , given an in- ,
terview
with their Yice-Chairr;
man
Balashov,. via a young man
acting as the needed interpreter.

Continued front page

vXX'y<

Since

the -■ interpreter,

maintenance

and

Businessmen

For

example,

Hans

Dr.

convertibility without a lowering
of trade barriers resulting in an
trade. The
a
special

that because of service-rendering

world

his

difficulties

have

nations

creditor

line,

his com¬

pany

proposition has commanded im¬ here, is that even radical tariff
interest in corridor dis¬ lowering would be only partially
cussion. The prevalent view seems effective. The high freight charges
to be directed toward using the England-to-U.
S.
on
his com¬
International
Monetary
Fund's pany's sodium product shipments
existing resources together with and other chemicals, would still
portant

buttressing

further

•;

he and

other countries' represen¬

tatives

feel

help

distribution and

difficulties would
effective competition

make

still

the American market

attendance

Mr. Steel beleves that

recommended—to

further

that

merchandising

vV-/'r> >'V'!

here.)
It

been

have

ant,

diffi¬

balance-of-payments

And

transatlantic sales.

prevent

the tune of $5 billion
or so
(Mr. Ivar Rooth, the Inter¬
national Monetary Fund's head,
and Gordon Willenius, his assist¬
to

money

difficult.
tariff

re¬

close the dol¬

duction would help

through
shipments of
culties—that creditor countries to numerous products such as tex¬
some extent be willing to accept tiles, heavy chemicals and machine
payment in the currency of the tools in the beginning, but such
other country.
success would quickly slow down
r
The
compromises , aired
here as a result of stepped-up efforts

seem

observer

to' this

•

lar

em¬

phasize unwittingly the dire need
for

confidence

full

currencies

parties concerned, as the
inexorable
prerequisite of con¬
by

all

and constructive

tinuing genuine
convertibility.

Actually, if

■

reserve

then

needed,

really

% "

fund is
dollars

will suffice to stop a

"run on the
bank." And, on" the other hand,
if there is
confidence, then no
fund

•

As Professor Sir

needed.

Dennis Robertson

sites, and the necessity for giving
capital and cur¬

freedom both to

transactions:

rent

"That only can

safely be made convertible which
there

excessive

desiring

convert

confidence,

reserves

reason

It -is

significant that on
their, positions on both tariffs and
convertibility, the "progressive"
are

without

sumably

lion-dollar
viewed
will

leaders

here

home backing.

Pre¬

another

being unwilling to co¬ pocket cash loss to the carriers.
forthrightly to any de¬ Among analysts and railroad men
there is considerable criticism of

'.'"'.V;::f■'

v;%;■

;■

"Skipper" Jos. Masek

"greasy pole" situation of un¬ ment of M. H.
predictable changes in tariff pol¬ Bishop & Co.,'
Minneapolis,
icy.- 'i;.
7' ■ 'w'-'
More Truth Than Strategy
-is sporting

Masek,
Depart¬
.

than
the

Masek- was

Lieutenant

two

years.

World
and

reasons,

Likewise

of
desirabil¬

;the -question

East-West trade and the

ity of expanding trade with
Russians, a subject not on

the
the

subsidy,

the

approval

the

States

Congress,

and

tive

over

Barret, Filch, North
Mo. —Barret,

has been conducting an
investment' business
under the
name - of the Proctor M.
Masters
Company.
For a number of years
there is of course evident over¬
Typical Russian Behavior
prior to the formation of the
whelming opposition back home
Proctor M. Masters Company, Mr.
;In line with the Russians' typi¬
from their fellow businessmen as
Masters was the Kansas City rep¬
the. mainspring of decisive Con¬ cal non-cooperation and unwill¬
resentative
of
the. Mercantile
gressional
opposition
to ' doing ingness to do business, is their
Commerce Bank & Trust Com¬
surprise attendance at this con¬
anything more than barely hold¬
Prior to his
ference.
N. Snitkov, Trade At¬ pany of St. Louis.
ing the present line. - entry into the securities business,
tache
of the USSR in Austria,
r This
home scuttling of enlight¬
he
was
an
officer of the New
was invited, with the High Com¬
ened representations abroad re¬
England National Bank & Trust
missioners of the other countries
minds observers of long memory
Company of Kansas City.
here, to the Conference's opening
of President Roosevelt's- sabotag¬
session. With him he brought N.
ing of Secretary Hull and repre¬
With Hexter Staff ;
sentative Raymond Moley as well Sergeiev, a member of the Trade
Representation in Austria. There¬
as the entire economic Conference
:;
(Special to The Financial Chronicle)
upon, for
the following sessions
itself.^at London in 1933.
LOS ANGELES, Calif.—Julian
they asked for and secured per¬
F. Flagg has joined the staff of
mission
to
Can Reduced Tariffs Close
bring; in five
"ob¬
^Hexter &
Co.,
6363
Wilshire
servers."
Four of these gentlethe Gap?
Boulevard.
He
was
previously
Should the sharp reduction of ment, Messrs. Jorinovich, Uwarow,
with
A. W. Morris
& Co. and
Makorov,
and
Muroschin,
are
tariffs along with procedural refrom the Soviet element of the Floyd A. Allen & Co.
forrn actually come about (a most
Allied Commission, permanently
unlikely event), would this suffice
located
in
Moscow.
The fifth
to close dollar gaps and eliminate
With E. F, Hutton Co.
observer was Sergeiev, wherein
the need
for U. S. aid?
Such
practical matter the Congress can¬ (Interviews with leading busi¬
on
this
question will
not be circumvented. And on the nessmen
noble intention to reduce tariffs, follow in a subsequent article.)

years,

questioning

businessmen elic¬

hangs

while

The

tariff reduction would be of some

Trade

its

help
not

the

conclusion

that

along these lines, it would
the entire trick, w

inquire
tioning

(Special to The Financial

tale.

writer

went to

Delegation
as

the Soviet

office

here

to the purposes,-

and

func¬

classification 'of the

New

Stock

Chronicle)

LOS ANGELES, Calif .—Maurice

Levy

Ex¬

change,

the remain¬

but

Abraham Strauss*

■

Hogie Co.

Joins J. A.

Financial

to The

(Special

LOS ANGELES,

slightly

the years.

Chronicle)

Calif.—Hermor*

i;.

associated

Powell has become

& Co., 507

with J. A. Hogle

Naturally, as with every phase
of railroad operations, the impli¬
cations

West

Powell

wa3

Mr.

Street.

Sixth

service formerly with Conrad, Bruce Ss
widely among the dif¬ Co. of Los Angeles and William.
the; passenger

railroads.

There are some
the way

& Co.

R. Staats

carriers that have little in
of

passenger

business

worry

Joins Dean Witter

Others receive a substan¬

about.

operating ratio of, say,
160% may not be as much of a
strain on a predominantly freight
carrier as a lower ratio of per¬

much as a

that gets as
its

Deventer

Van

staff

Street. He was pre¬

with

viously

myre

from the passenger,
Incidentally, of the ma¬

has joined the

Witter & Co., 632.

Dean

South Spring

•

road
quarter of

would be for

125%

Staff

Chronicle)

ANGELES, Calif.—Robert

LOS

senger

haps

Financial

(Special to The

part of their total gross rev¬
enue from
such services. A pas¬
tial

Doffle—

Marache,

& Co.

revenues

services.

jor railroads/New Haven has the
largest relative stake in the pas¬
senger end of the business. . Nor-r
mally it is able to keep

its

pas¬

Middlebk.

Joins Coburn &
•
.

(Special to The Financial

BOSTON,

Mass.

—

rejoined

has

Canton

Chronicle*

Richard F.

Coburn

operating ratio down be¬
Incorporated, - ;7 5 >
and; realize a profit Middlebrook,
Last year, however, the State Street. He was recently with
ratio
climbed
nominally above J. H. Goddard & Co.
^
!
the break-even point, to 100.18%
Louis J. Gexler has also joined
This was still well below the ratio
senger
low

100%

thereon.

the other major Class
I carriers and ' compared with a
ratio of 131.6%; for the industry
as a whole.
-> *
V.
for any of*

;•

the firm's staff.

the, poorest record
with a ratio of 157.7%.

had

last year,

However,
this

area

moment.

passenger
are

services in
of little

generally

Second

•

Guaranteed

Region

Specialists in

Percentagewise, the Pocahontas

Railroad

Securities

the list was

District with a ratio
of 139.3%, followed by the South¬
ern Region with a ratio of 130.2%.;
The
Eastern
District at 124.4%
had the best showing. All of the

the Western

regions

districts

showed

im¬

has been added to the provement over a year earlier ex¬
staff of E. F. Hutton & Company,1 cept for the Pocahontas. On the
other hand, the Pocahontas roads
623 South Spring Street.
"
A.

York

•

Jos. E. Masek

at 30 miles per hour.

CITY,

varied

have

ratios

ferent

KANSAS

City, mem¬
bers of the

ing 26.5% represented the passen¬
ger service proportion of expenses
common
to both services.
These

froctoiv MaslersHVitli

possibilities of such trade if
deemed
desirable. While

Also,

services.

various

York

New

to work

have

of the relative performance

losses vary

Broad Street,

Nevertheless,

•

general obeisance is unanimously Fitch, North & Co., 1006 Baltimore
Avenue, announce that Proctor M.
spite the suggestion that- it be made to the justice of American
Masters
has
become
associated
termed a loan under the Treas- embargoing
of
strategic
warwith them in their sales depart¬
uryVdebt-limit-raising power in related materials, the possibilities
ment.
Mr. Masters, for the past
lieu
of an appropriation, as
a in other goods are quite limited.
United

best

the

formula that year, and

de¬

get

true,

ating expenses allocated under the

very

water skiing

questionably

related solely to pas¬ Manager of
senger and allied services in 1952 their Unlisted Securities Depart¬
amounted to 73.5% of total oper¬ ment.
'
'
•

takes:you

ent dollar shortage.

Spring, Stew¬
art & Co., 25

the expenses

War II
a

with

entirely there would not be a cut
in expenses equal to the costs now
allocated
thereto.
That is un¬

were

pointed out in the Bureau release,

Navy

ciated

and head-end

asso¬

the firm of

ure

the

of goods within
While this
understate the case for stra¬
billion

be-

has

come

abandoned

the

continually
allay
the fears of Craft Cruiser
Excelsior
their fellow-businessmen by out
stressing
that
tariff. reduction W a y.C M r.
influx of no more

passenger

firm

grounds that

the

Abraham
Strauss of this

with and the only available meas¬

significant, that the Amer¬ around in his
low-tariff proponents here 22-foot Chris-

business

It is

would entail

formula

the

even

Ltd., is the elimination of the dis¬
the peace of mind of
"Skipper"
Joseph
E.
America's debtors from the manager of the Trading

additional multi-bil- agenda, did corridor inquiry re¬
fund,
sure
to
be veal skepticism on the quantita¬
just

operate

there is enough sub¬
highlight skilled skip¬
the
deficiency
of the
remedy per, which
below the $6 billion-or-so of pres¬ helps when he

■

business

Spring, Stewart Go.

stance to the estimate to

quite

American

Deficits

Abraham Strauss With

competitive

turbance to

without may
melt away tegic

Holding the Bag

Ser¬

one

position.
More important than gree.';
quantitative tariff reduction, in
the view of Sir Jeremy Raisman,
Vice-Chairman
of'«Lloyds Bank

ican

day

manufacturers actually

their

reestablish

...

like'--snow.",

■

for

American

the

(of Cambridge)

wisely stated here, after pointing
out trade and monetary prerequi¬

gap

could still hot compete with
the big American companies in
For a Supporting Fund
their home market. And the offof
One
of such
"responsibilities" the-Conference-floor opinion
is establishment of a kind of con¬ Joseph Steel, director of Imperial
Chemical Industry Ltd. and head
fidence fund to further the con¬
Britain's
50-man
delegation
tinuance of convertibility, which of

responsibility in this respect."

(

was
astounded
the
Passenger Service Operating
that Sergeiev was not
The most recent issue of had the best freight operating
merely an interpreter, but the
"Monthly Comment on Transpor¬ ratio at 64.-3% and Eastern roadu
same as observer Segeiev.
tation Statistics," put out by the the poorest, 71%.
Western and
And despite the usual reiterated
Bureau
of
Transport Economics Southern roads were tied at 64.7%
protestations of Balashov, when I
and
Statistics
of
the Interstate on freight service.
'
interviewed him, of their desire
Of the major Class I carrier;*
Commerce Commission, again
to do business, Sergeiev told me
highlighted the drain on earn¬ there were four last year that had
they had not approached any Of
more
than half of their freight;
the
Western representatives for ings, and the burden placed on
freight operations, by passenger net operating income wiped out.
business, were shunning any such
and allied services such as mail,
by the passenger service losses..
suggestion, and should any trade
express, etc.
Preliminary reports The hardest hit was Chicago &
suggestions come through in re¬
where 73.5%
of.
for 1952 indicate net railway op¬ North Western
verse,
they would be interested
erating income from freight serv¬ the freight service income was
in nothing else than a petition in
ices at $1,720 million. This was a
absorbed, followed by Chicago.,
writing to the Soviet Government,
Milwaukee, St. Paul & Pacific
new peak for the period 1936-1952.
with a written letter of business
with 55.3%. The other two were
As an important offset, passenger
proposal, with same "to be sent
in the East—New Haven at 54.1%
services resulted in a net operat¬
on to
Moscow for approval."
and New York Central at 50.6%.
ing deficit of roundly $643 mil¬
Similarly, the writer, who at¬
lion.
While
this
showed ' some Pennsylvania, incidentally, had
tended the International Confer¬
improvement over the preceding 44.7% of its freight net operating
ence
in Moscow in 1952, noted
income offset by the loss onita
Robert Chambeiron, who acted as year, when the deficit hit a peak
w
Of $681 million, it was still suf¬ passenger services.
Secretary-General of that Confer¬
ficiently large to absorb 37.4%
ence,
walking around the halls
of the net railway operating in¬
here, taking in the scene but
come
derived from the freight
secretive
about
his reason for
services.
V;
being here and participating not
These
figures are, of course,
at all.
Announcement is made that the
based on the I.C.C. formula for
Thus here again, even in the
allocation
of
expenses
between firm of Strauss Bros., Inc. has*
face of the Peace Offensive, the
the various services.
The deficit discontinued
J
Russians are going through the
does
not
represent an out-of- business.
outward form of participation, but
next

Boden, head of Germany's General
Electric Co., pointed out to me

expansion

geiev, had told me, of his menial '
job, and that neither Balashov
nor he were cognizant of the ob¬
servers,

restoration

(2427)

Number5226"... The Commercial and Financial Chronicle

wffi
»

■

CCmUTEEP 1AILI0AP

25 Broad

Street

tTOCtS-IOIM

New York 4, N.

Telephone BOnllng
Members Nat'l Assn.

* »•

Green 9-C40O

Securities Dealers, Inc.

The Commercial and Financial Chronicle...

(2428)

regulate

Re-Examines Federal Reserve System
Our

Reporter

The

Clearing House releases a special study analyzing
objectives, powers and techniques of the Fed¬
eral Reserve System, and
lists specific recommendations,
among which are: (1) rewording the Employment Act of 1946

government market, despite the rally, continues to operate
cloud of uncertainty because the credit restraining

ested in the shorter-term classification

only,

are now

healthy
make

marketable bonds also continue to display an

willing

because there are very few around that are even

tone

make minor scale purchases of these securities.
strong ihat unless there is more of a

now

The feeling seems to be very

change than has been displayed so far in the attitude of the mone¬
tary authorities, these bonds will continue to make new lows.
Although there has been some state funds in the market for the
new 3%%
issue, these purchases have not been as large as they
were a

short time ago.

•

The

New

York Clearing House,

association of the major banks
of New York
City, on June 4 is¬

factor

the

there

because

feeling

growing

that,

appears

continued

with

offerings of these securities by the Treasury, there is no need to
rush in and buy.
The feeling that if one has patience, higher

yields will be available in even the nearest-term obligations and
therefore why should one put all one's funds into the market under
such conditions, seems to have a considerable following.
As long as

tight

means

the

markets are to be under pressure, which
conditions, there will be continuing uncer¬

money

tainty which is not only making liquidity preference of paramount

importance, but also is carrying the liquidity idea to the point
of short-term government issues are even con¬
about making purchases of the shortest Treasury obliga¬

where many buyers
cerned

Recent

Operation not Helpful

The attrition in the June refunding did not have exactly a
bolstering influence upon the government market, and the $800,000,000 offering of 107-day tax anticipation bills at an average
yield of 2.383% right on the heels of the June operation did not
help an already uncertain situation. There is np question but what
the Treasury will have need for the funds that are being raised
and this is the required business of the day, because payments
have to be made for past and current commitments.
On the other
hand, it is believed in some quarters that the methods used in
recent and present operations in the money markets could have
been

bit less

restrictive, to

sened the drive

say

the least, and still not have les¬

the forces of inflation.

As it is under the

prevailing plan of procedure the Treasury
substantial part of the deficit through the sale of
Treasury bills which is certainly not bringing about an extension
is meeting

of maturities.
to raise

some

Also the
of the

use

new

expenditures

of the shortest government obligations

funds that

are

'needed to take

care

of the

income does add to the money supply
and this is not exactly the way in which the forces of inflation

excess

are

without

cost.

The study of nearly 165 pages ex¬
amines the credit control objec¬

that

process

tives,

ratic

over

short

the

and

that

theoretical

Reserve

traces

development
banking system

upon the
issues are
very much on the confused side of affairs and it is going to take
something of a very tangible nature in the money markets before
there is going to be much of a change in their attitude.

Owners

and

buyers of Treasury

To be sure, if there is to be a permanent betterment in the
international situation, starting with developments in
Korea, then
is should be reflected in the plan of action of the
monetary author¬
ities.
This might bring about conditions that would be more

favorable to

the money markets in

general, which would be
flected in prices of all Treasury obligations.

re¬

come

into the market for sale.

long 2V2S

of bidders when

There have been

few

the way down, largely the results of
scale orders.
However, there is at the moment less of a tendency
to put in scale orders because some of those that
were in well
on

under the market have been filled

rather

presents

for

and

cen¬

the past

variety

lar and for

nomic

promoting stable
Several

progress.

eco¬

specific

recommendations

are designed
to
accomplish this,' For example, the
study recommends that: (1) The
Employment Act of 1946 should

reworded

framework

rela¬

operations,

forth

set

Section

12A(c) of the Federal Reserve Act

to The

Financial

Bagrowski has become
with

First

connected

California

Company,
Incorporated, 625 Broadway. He
was formerly with J. A.
Hogle &
Co. and King Merritt & Co.

SAN

The

Financial

Chronicle)

Hudgins

has

with

become
Evans

responsibility

to -direct

1023

Second Avenue. Mr. Hudgins was

previously
and

with

Clearing House,

Fairman

Maxwell, Marshall & Co.

Co.

and its

publica¬

voluntary
of

the

and

collective

banking

Dillon
Nash

Co., inr
Chairman;

Nash

Exchange and floor
Chairman; Benjamin D.

brokers

that

bankers

Philip
W.
Co., Stock

feeling

community

Eastman,

vestment

the

bankers

this

foremost

fi¬

since

times

the

The
said

Clearing
have

conditions

and

System's

inception

House

study

inde¬

taken

been

Harry M. Nelson With>
Nathan G. Fay Co.

PORTLAND,

pendently from ail supervisory
agencies and other bankers' asso¬

Nelson

has

Me.

Harry

—

become

associated

was

existed

felt (1) a definite

for

Mid-Continent Sees.

that may be acquired by
eral Reserve banks.
Other

tions

important

made

major

by the

York

Section
serve

City

the Fed¬

association
banks

of
in

are:

13b of the

Federal Re¬

covering

direct loans

Act,

to industrial and commercial bus¬

inesses, is not needed.
credit

facilities

provided,

involve the
eral

The

authority
real

this

special
are

should

they

kind

not

of the Fed¬

banks.

Federal

should have

and

resources

Reserve

Board

discretionary standby

regulate

consumer

estate credit.

objectives,
the

Its

determine

possible

consolidation.
tions

statutory

functions

their

view

aim

under

should

what
are

condi¬

compat¬

ible with stable economic progress
and
to
discover the
means
by

which

their

objectives

social

and

Federal Reserve

policy.
Congress should establish

lic

debt

commission

reference

exhaustive

with

pub¬

broad

anism

Chapter

and

The

(1)

which

recommenda¬

along with
review, are con¬

report, the issuance

extraordinary in the

100-year history of the New York
Clearing House.
The

study contains a detailed
analysis of the mechanism of bank
expansion and contraction.

been

maximum

Officers

were

The
been

First

offices

Street,

New

York

Front

reasonable stable price

(4)

should

(5)
Board

FT. LAUDERDALE,

Powell

with

the

should

have

standby authority

Lynch, Pierce, Fen& Beane, 1311 East Las Olas

LAKELAND,
Johnson

differ¬

requirements

Federal

affiliated

Merrill

A. M. Kidder Adds to Staff
has

with

(not limited to

periods of national-emergency) to

Fla. —Willis

connected

become

Kidder

Co.,

131

Tennessee Avenue.

Ward Opens

Reserve

discretionary

South

eliminated.

That

Fla.—Irwin

become

Boulevard.

government

be acquired by

reserve

has

be taken

That .geographical
in

Calif.—
witji
127

now

Associates,

(Special to The Financial Chronicle)
-

the Federal Reserve banks.

ences

Fund

With Merrill Lynch Firm

ner

to limit the amount of

Chronicle)

Montgomery Street.

way as

policies, to the overall ob¬

Financial

FRANCISCO,
M. Packer is

Reserve

market operations^.,and-dis-

further^leps

100

City to

in the securities business.

(Special to The

SAN

mandatory the gearing of

..(3) That

has

With Mutual Fund Assoc. *

Federal

level.

the

Co.

with

Floyd

jective of

Manhattan

formed

Mutual

open

•.

1st Manhattan Co. Formed

and

maintenance of a
reasonably stable price level.

to make

Co., Inc.

follows:

Act be amended in such

Floyd

and

of Honnold &

the

Collier,
R. Burns,
and
Treasurer.
Both
previously Vice-Presidents

sidiary to

(2). That

Building to

Merlin

are

President,
Secretary

duction should be made aims sub¬

offices

with

Exchange

in the securities business.

engage

national policy,
employment and pro¬

That

formed

Commerce

engage
may

City

OKLAHOMA CITY, Okla.—MidContinent Securities Co., Inc. has

Mech¬

Expansion

gist of the study

summarized

opinions,

historical

"The

Credit

undertake

public debt prob¬

other

the

credit

pointment), he is not supposed to
have done any of the writing.
Much of the body of the study
is
descriptive, and resembles a
typical college text in money and
banking. Illustrative of this is the

securities that may
and

rec¬

and made suggestions
(prior to his recent Treasury ap¬

count

investigation of all

the

the proofs,

economic

be reconciled with

can

push

dolph Burgess is said to have read

title

In Oklahoma

documents.

planned to

of
the
study by
placing copies in the hands of in¬
terested government officials and
legislators. Although Dr. W. Ran¬

govern¬

elimination

activities

ommendations

so¬

powers,

all

credit agencies with

their

be the first in

Contraction."

Congress should review the
cial

it may prove to
series of similar

recommenda¬

commercial

tained in

affiliated

Co.,

the

with Nathan C. Fay & Co., 208
Middle Street.
Mr. Nelson, who
thorough reis widely known in Maine busi¬
the System's open-market trans¬ evaluation
of
the v Reserve Act,
ness and financial circles, has rer
actions in such a manner as to substantially unchanged since its
cently retired as Executive Man¬
protect the purchasing power of passage in 1913, (2) that New York
ager of the Savings Banks Asso¬
the dollar by removing the mone¬ City was a most appropriate locale
ciation of Maine, a position which
tary causes of economic instabil¬ for such an undertaking, and (3)
he had occupied for 28 years.
:
ity and with a view to making that the Clearing House was the
discount, policy effective; (3) Fur¬ logical body for same. Its issuance
ther steps be taken to limit the is extraordinary in the 100-year
:
amount of government securities history of the Clearing House, but

tions

DIEGO, Calif.—-Herbert C.

exchanges
field are Norr

predictive

tion followed approval by the As¬
sociation.
It is the result of the

need

aspects

(Special

ships

re¬

firms

partner¬

man

ciations.

much

Chronicle)

Calif.—Stefan

reserve

soliciting

and

expansion

The

positive

These

DIEGO,

private

since

should be reworded to impose-a

lem.

(Special

have

Chair¬

who will

assist Mr. Hall

expansion is

extremely er¬
periods of time

legal

Tne
men

shows

indicate

tively stable price level; (2) The
guiding principle in open-market

With R. E. Evans

the

group.

1913.

the

terms

commitments in corporate bonds.

within

value.

changing

rounding out of positions.

SAN

based

quirements

employment, production and pur¬
chasing power," is to be achieved

quickly.

doing some
They have been using funds to make

Division

Chairmen

Williams of W. E. Hutton & Co.,
Stock Exchange Firms Chairman;
capital
should
express
clearly nancial
and Oliver J. Troster of Troster,
that a relatively stable
price level their views for improving the ef¬
is
of
Co., unlisted brokers
paramount importance
in fectiveness of the great Federal Singer &
maintaining a healthy economy Reserve System after the many Chairman.
and that the aim of "maximum years
of experience through
be

Private pension funds seem to have
temporarily pulled out of
the market as far as the new 3V4S are concerned after

First California Adds

ratios

recommenda¬

strengthening the Fed¬

and

The new lows which have been made in the
outstanding mar¬
ketable government obligations, that is the
2Y4S, the 2%s and the
2V2s mainly, have been the results of a combination' of
slightly
increased activity and the rapid backing
takers of the

the

automatic,

study

Fund'

announce^
the names of

Sirota of
study has been underway
Sirota & Co.,
early 1952, when commit¬
Reserve Act and for achiev¬ tees were
Cotton and
appointed and charged
Herbert S. Hall
ing a better coordination of na¬ with supervision of the under¬
Commodity
tional
credit
policy and public taking. Actual development of the Exchange Chairman; Garry Ondebt management.
derdonk of L. A. Mathey & Co.j
study was accomplished by a "task
American Stock Exchange Chair¬
The study lays emphasis upon force" of men
representing the
H.
Lawrence
Bogart
Jr.
the need for safeguarding the dol¬ member banks of the New York man;
tions

away

and

of
over

the

not

Tne

York

group,has

eral

ment

Timidity the Keynote

bonds have

years

suggestions

New

•

One of the items that is getting a bit more attention at this
time is the Korean situation, but herein again there is consider¬
able skepticism as to whether or not a truce in hostilities in the
Far East would have more than a temporary influence

government market.

Re-examined."

powers and techniques
Federal Reserve System.

Investors Confused

exchanges

Federal

over

laid to rest.

This analysis points out a number
of
popular misconceptions con¬

within

tions.

of The Greater New

cerning deposit expansion, par¬
ticularly the idea tnat banks can
"create"
money
automatically

market

money

that may

securities

Mor7
Stanley & Co., and Chairmap

gan,

special study of the Fed¬
eral Reserve System entitled "The

sued

confidence

to be
about as low as it has been in a long, long time. This is attributed
to the uncertainty that not only affects the operations of pros¬
pective long-term buyers of government obligations but also those
that have been making commitments in the short-term securities.
It seems as though those that have funds which could be invested
in the nearest-term issues have become hesitant about doing even
that

of government

amount

Campaign

Herbert S. Hall, partner of

acquired by Federal Reserve banks.

tral

Confidence at Low Point
The

NY Fund

to protect

The longer term

uncertain

Wall Slreeiers in

purchasing power of dollar and
discount policy effective; and (3) placing further re¬
so

showing some

of time.

credit.

price level is paramount in keeping a
(2) limiting Federal Reserve open market

economy;

strictions

stable

operations

hesitancy about making commitments in these issues because they
seem to feel that higher yields will be forthcoming with the pas¬
sage

indicate

policies
of the monetary authorities, irrespective of purchases of Treasury
securities by Federal, are still keeping the pressure on the money
markets. The higher interest rate pattern is bearing fruit in the
form of lower prices for the outstanding marketable obligations.
Prospective buyers of Treasury issues, even those that are inter¬
under

•

change be made in
the regulation of stock exchange

the credit control

By JOHN X. CHIPPENDALE, JR.

and real estate

consumer

(6) That

New York

Governments

credit.

Thursday,. June 4, 1953

Office

M.
814
South Palafox Street to engage in
PENSACOLA,

Ward

the

has

Fla. —Owen

opened

investment

offices

business.

Number 5226

Volume 177

Continued jrom page

(2429)

The Commercial and Financial Chronicle

...

Brown Bros. Harriman

there

vessel field

naval

the

plant.

similar picture—only more so.

readily impair
effectiveness of a
aircraft carrier by

consumption
the
military
submarine

can

this

endless

day

the utility field.

can

expect, with the talent and money

presently being devoted by Uncle
the
perfection of-*war

Sam :to

service
have

nuclear

help

which

in solving

end

plants, to

power

fertilization

will

our

own

immediate problems.
But

in the stationary power

field

sit

cannot

other

the

pect
ideas

idly by and ex¬
man
to develop

for

us.

stir

must

our

stumps — and keep on stirring
them.
The
procession in tech¬

nology
not

inexorably.

moves

Maybe

always forward, but usually.
And

stops.

never

that

ment

sits

any manage¬

back

and

com¬

placently waits for technology to
to

come

about

it, is, in

mentally

opinion, just
The teams

dead.

working

Detroit;

Monsanto-Union;

Com-,

Edison-Public

Serv¬

industry,

monwealth

Pacific

ice;

Bechtel,

Gas

should

couragement

Dow-

Electric-

Pioneer-Foster

and

Wheeler

receive

our

active

and

en¬

support.

Many other approaches should, I

understand

bank

that such

moratorium

and progress.

in the public

utility and industrial power fields

this nu¬
clear energy course, other people
will do so in our place and stead.
And some of us may not like the
not

actively

Harriman & Co.,

Street,

Wall

announces the appoint¬
of Herbert Muhlert as a

changes,
ment

will never be
human thought

New York City,
members of leading national ex¬
59

bank balances there
a

firm

banking

private

Brown Brothers

there

another moratorium

may

while

that

confident

prospectuses, should be left on
your
desk—you are the one to
read and digest them. Your cus¬
tomer
should. buy you — and
that

you.

nothing

else.

Add

This

going to state that the

will

you

do for any

ever

customers will be for that

Mr. Muhlert,

manager.

to you

and places himself in your
hands. I am also going to state

that unless
the

until you control

and

majority of

the extent that you

who for¬

sions
O.K.

and

your

them,

accounts, to
make the deci¬

your

handicap

Department.

stifle successful results

customers

your

pursue

"Bawl Street Journal"

that

curtail

will

—

ample,

that

won't miss this opportunity. Some¬

records every

is becoming more and more
ing increasingly necessary in the like distribution of a bond issue.
public power field because hydro As the Circulation Committee an¬
power
simply
cannot fill
the nounced that it was now receiving
needs.
I have a recollection that orders for the comic paper, to be
undergraduate in published on June 5 in connection
forward, if not radical with the Bond Club Field Day,

when

year,

of ground work he
started to do some important busi¬

almost

and

both for

ness

and

was

The

day

One

telephone

tell him about

the balance sheet,
other data concerning

some

the

industrialist inter¬

and
said, "Listen,
should I buy this stock or not?"
He answered, "Of course, I think

him

called

should—that's why I

you

you." The man answered, "Well
why in h
didn't you say so

needs, make the proper selections
of securities, balance out the ac¬

and

quit telling me all the rest
stuff. If it's good for me,
me so and I'll buy it; if not,

of that

count between stable and variable

of the nation's lead¬

began to

Suddenly

portfolio, analyze their own

a
very
assets, watch over the securities
thinking, institution we devoted word spread around the Street after they have bought them? How
long sessions to matters such as that there was "strong institu¬ do you know?
Karl Marx
and the Communist tional demand" and that "wide¬
Then of what earthly use is a
Manifesto.
If
my
recollection spread individual subscriptions"
prospectus except
to
you
who
serves me correctly there was de¬
were
coming in from
coast to understands these
things?
Why
veloped at that time the thought, coast.
give it to a client to read? Does
As
in
I
believe
ascribed
to
Nikolai
previous years, banks,
your doctor give you the X-ray
Lenin,
which
might be
para¬ brokerage houses, and other, fi¬
pictures for analysis?
#*■
phrased, "Give me control of the nancial firms have been^p^cing
v
•.
power supply of a nation and I'll advance orders for the paper to
Why Should Your Customer
send
to
their
customers
and
control that nation." Whether the
Make Decisions?
Adrian M. Massie, New
reference is correct or whether friends.
If your customer is not qualified
York Trust Company, is Chair¬
the thought is properly ascribed,

rupted

ing securities are qualified to set
up

one

stock he wanted to sell this man.

obvious.

answer

with

earnings,

and

people who are buy¬

many

year

called this man on the

the

tomer?

industrialists.

ing

customer and for you.

Who Knows Best—Your Customer

How

subject. After

ing about this very

Setting New Record

ting new circulation

thing about selling. We were talk¬

thing like atomic energy is grow¬

and the

I.B.A.

this business and he knows some¬

—Or YOU?

sure,

some

men

He's made the grade

N.A.S.D.

Just think this thing through.
for ex¬
Who knows and understands the
the public
Distribution of the Bond Club
investment
more
power
people—the socialists, as of New York's "Bawl Street profession of
some
people like to call them— Journal," which has been set¬ thoroughly — you or your cus¬

consequences.

security

country told me
a
member of the

both you and your
are
working under a

merly was an assistant manager,
is in charge of the bank's Custody

most
this
this story. He is

day one of the

The other

successful

only

customers

See

One Up and

Who Was Right

client who turns his business over

again according
such matters. But

experts

les¬

moratorium

was

job

Faith

has

who

of your

Herbert Muhlert

The

time may come

some

best

game?

period not too long ago when

balances.

valuable

number

Also, I

need in

to the profit you
an
account is

Facts, statistics, reports,

promises.

best
have
will

out

customer

How

fuels.

that you can ever

respect

make

there is

stake do

energy

there

which should be usable

fossil

our

the

that

statement

customer

Many of us can well remember

previously cited limitations on
weight and bulk for the aircraft

sons

uranium

going to make the cate¬

gorical

the world's

energy

all

much

ship is really very great.
This
field, with the - removal of the

learn

the

resources

even

FACTS!
I

Remember there is about 25

times

price is secondary to military ef¬
fectiveness. The potential for the
development of a successful nu¬
clear power plant for use aboard

application,
gives ' us
greater opportunity to

power

research will pay

the

believe,

off.

Fuel

limiting its cruising radius.

Let's Look at Some

nuclear

By JOHN DUTTON

plant are vast! The more talent
we put to work and the more the
interchange of ideas the sooner,

weight limitation is nothing
that on an airplane.
Fuel

The

6£l

velopment

crew—than fuel for

the

for

the power

Securities Salesman's Corner

Appoints Executive

Nuclear Energy
For Electric Utilities
fuel

tell

that too.

I don't want to

all that

stuff, it doesn't

listen to
mean

Was he

me."

anything to

right? Of course he was. He meant
only one thing. I have faith in you,
I give you my business. Treat me
right and forget the baloney. I
am buying YOU, not statistics.
* -

the

That's

should

sell

way

stocks

think

and

we
don't

think we'll ever do a good

job of

it until we do it that way, all
way,

the

all the time.

It is still man of the Circulation Committee by training or experience to make
for this year's "Bawl Street decisions then why try to convince
statement and I believe
him that he is qualified?
Why
clear fission
as
the
device for worthy of your consideration.
I Journal" and orders at $1 a copy
send him detailed, statistical re¬
making power. I ask the question,; am confident that those people are being taken by Circulation
"How about fusion instead of fis¬ who are on the other end of the Manager Edward S. Peterson at ports? Why send him technical
sion?" That's what goes on in the street from this group don't miss 100 Broadway. Papers ordered in material of any kind? Why talk
advance will be mailed to arrive markets,
interest rates, outlook J. BOSTON, Mass.—Guy Garland
hydrogen bomb and it gives us a the impact of this observation.
June 5, so that the public can for business, etc.? Why clutter up
has been named manager of the
totally different scientific field, They know that if water power is
detail and con¬ Boston office of John Nuveen &
where we know one thing which inadequate to do the job they can enjoy it as soon as Bond Club his mind with
believe, be initiated.
Most people

is aside from the point.

today think of

nu¬

good

Buy Garland Joins

Nuveen in Boston

big advantage

the

outset

for power purposes—the tempera¬
fusion

tures

run

many

times

higher

than in fission and no
power plant man ever really dis¬
liked high temperature sources.
I:

■«.

•

nuclear power—
the most ex¬
clusive government monopoly in
our entire history as a nation.
easily

turn

members.

fusion?

As soon as

write

Why

letters that
bureau¬

have to be O.K.'d by some

this is perhaps

and

crat, so that they will surely con¬
some "Statement of Pol¬

To Ride Bikes at

real nuclear power

form to

Bond Club Races

plant is made to function—just to

icy"

that in itself is unrealistic,
completely devoid of any con¬

reliability

hands of the Federal Government.
The

work

proceeds with an aura

of secrecy.

This is,

or was,

for the

national security.
it is doubtful if any lasting
of

purpose
But

our

progress

has

been

ever

tended

over

any

world
an

ex¬

peoples

cloak of
problem is

under the

This

secrecy.

scientific

made

period

industry

any

the

legal

man-made and the

answer

can

changed, at will, by prevailing on
our

law makers.

I have

inten¬

tion of

pleading this case. Others,
qualified, have done it and
are doing it.
The AEC announce¬
ment of April 8, recommending to

'better

Congress
•energy

changes

the

atomic

law, is most encouraging.

I leave this problem with you

•decision and

I support the crude phil¬
osophy that "two heads are better
than one." Nobody, no organiza¬
pose

tion,

has a monopoly on brains.
problems before us in the de¬

investors

clientele

know

much

the

—

you

that

submit

would

very

forma in the thinking of many
people we like to identify as so¬

pro

cialists.

chosen
Bond

intend

you

The

matter?"

den

economics, at

this

not too bright. The bur¬
technical development is

are

theflegal picture needs

And

vast.

clarification.^hese things will all
improve

ticularly
search

witlr» thought

development.

develop

legal,

and

par¬

witlT technological

and

re¬

Either

.^successful, usable,

econom^al

Club

let others

rider

the

interest, each
will race the

starting point.
plans call

Mr.

1942,

The office,
at 31 Milk

Garland has been

the banking

Joins King

Merritt Staff

.(Special to The Financial Chronicle)

La.—Robert L.

SHREVEPORT,

Long is now connected

with King

about Merritt & Co., Inc. of New York.

subject then they don't need

Think

This

ex¬

Through

P. W. Brooks Adds
(Special to The Financial
'

Chronicle)

PORTLAND, Maine—Harold

If you are

for a
starting gun, and book will work and effort you are expend¬
be made on participating teams ing.
You must be right suffi¬
right up to the mounting signal. ciently often to keep and gain
J.
Raymond Smith, Weeden & good-will.
The best sales argu¬
*Co., Field Day Race Committee ment you can give to a doubt¬
Chairman,
looks
for
"odds ing customer, in my opinion, is
strongly
influenced
by
team this plain simple fact.
You are
names and the good looks of the
not in business for a day — one
Present

contestants."

customer more

nuclear power

Spencer Swain Adds

erVfferprise system, will

(Special to The Financial

take-over by default.

this power engineer.

Street.

bonds.

going to build a busi¬ Purington is associated with P. W.
Brooks & Co., Inc. of New York.
ness you must have satisfied cus¬
tomers. That means that you also
must make enough profit out of
WE MAINTAIN ACTIVE MARKETS IN
3:30 your business to pay you for the

Chronicle)

Mass. — Harold E.
That's what the story looks like Murch is now with Spencer, Swain

opened

p.m.

plant or wef^ho are proponents
of the free

topical

marked course, then
is, "What hand over his bike to a lovely
about the team-mate, who will ride it back
'

time,

for

length of

My statement to you
do

they

America" aspirants you. Why sell anything at all
bicycle racing. Wearing labels cept confidence in you?

reasoning of mine is specious but prettiest "Miss

for

action.

;
In the matter of development of
•equipment and processes, I sup¬

The

coal, oil, and gas reserves and pected to surpass themselves in
the accomplishment of a socialist's response to the cheers of their
dream.
You may say that this team-mates, who will include the
the

municipal

and investment field
nection between such realities as since 1945 and previously was an
of The Second National
I am discussing here? Why put officer
the customer on even a remotely Bank of Boston. More recently he
connected basis with your own was with Harris, Upham & Co.
and

without regard to cost or
Competition among prominent
—
there will be some Wall Street firms will reach new
proceeding any further advocates of socialist power who
highs when Bond Club members
I should refer to the third big
will be in a position to say, "There team up for bicycle relay races
problem which I have identified are only two important sources of at the annual Bond Club Outing, understanding of investments and
as
the legal problem.
We work
for
June
5
at
the securities? You've spent a life¬
power—hydro and nuclear. The scheduled
in this field of atomic energy on
time
of
study,
experience and
government controls both. Hence Sleepy Hollow Country Club in
sufferance. The law puts the own¬
preparation in a highly soecialized
we
should
control all energy." Scarborough.
ership of fissionable fuels in the That would imply annexation of
field
in
order
to
build
up
a
Bike-riding bond men are ex¬
work,

The Legal Problem

Before

Co., the oldest and largest invest¬
exclusively in

ment house dealing

BOSTON,

Co., Inc., 10 Post

Office Square.

less is only im¬

portant to you from the standpoint
of radiation of other customers
that you

can

mendations
Put

sell

into

obtain from recom¬
of
satisfied clients.
your
own words —

yourself, and live up to your

UTE ROYALTY

CORP.

UTANA BASINS OIL
ENGLISH OIL
? Information

request

W. D. Nebeker & Go,
Members N.
PAC.

A. S. D.

NAT'L LIFE BLDG.

SALT LAKE CITY

18, UTAH

Phone 9-3783

12J3

The Commercial and Financial Chronicle...Thursday,

(2430)

feel

strongly that the invest-

ment organization of our trust de-

ment and on up in the commercial
end of the bank. I want to call

partments must be of the quality

iContinued from page

your

A Commercial Banker Looks

that

meet

well

This

test.

rounded

staff,

means

(d) Availability—not

hampered
business

•

irips.
There may be a
the question of

•...

using

napacities—that

fiduciary

ties—that

they

not

beneficiaries

a poor

are

cannot be said of a disgruntled < beneficiary.
The news
will soon be around that the bank

prevented from making any gains.; the same

.sane man

idence

part of

the

me.

did

trustee.

"nor

moth

corrupt

who,

accused

are

One

value.

loses for the appointment of

tiividuals instead

duciarfes
in

same
—

take

the bank must

• i_

funds. With this
starting point, it

many

in their field, alert, aggressive,
analytical—men who can annraise
a a„fi^ SiK

ofTuture trends
1 luture trends

along
to

/7 JP

It is argued

the trustee.

It is only fair to state

that there have been
where

cases

of this

banks sometimes
combat

ferred to
4Hicy
takes

what

often

conservative

re¬

tend-

the part of trust officers

affirmative

effort

and,

all know, this effort is con¬
stantly being made.
Trust offi¬
cers,
too, need the sympathetic
cooperation of their legal counsel,

you

whose

outlook

must

firmative and not
tive.

"How

sterile

this

can

also

af¬

nega¬

constructive

legitimate goal be attained"
should, it seems to me, be the

and

aim of

policy. Without relax¬

our

the

necessary safeguards, our
constant effort should be exerted
ing

to the end of

obtain

enabling

to say "No" to

also

negative

useful, not

way,

our

clients
clients

.ingenious

is
are

quest,
that

limited

were

policies.

funds,

trust

ago,

criticized for

are

investment

It is

atti-

our

answer

in specific

A-"—*--

talking about,

know we
know we

are

being
being

their behalf, that our

help

them, then when

forced to

refuse

some

re¬

they will have confidence

our

position is justified.

The

heartening in¬

dication that the proponents 0f the
posing battle.

are

fighting

;

One

manage-

♦

super¬

visory function, subject, of course,
advice from the officers of the

Years

ganization moved

men

duction

trust

l'i'

iUnvt

L-vi/ilrr,

^,/^v.

his

picks
bank

our

responsibility of, the
trust officials; that such authority
flows properly to the various suby
and

estab-

are

agencies
•

An important aspect of this 1
phase
*L
.

ordination
trust

the co¬

assure

banking and
in exchanging

the

departments

information, cooperating in fol¬
lowing leads to new business, and
generally acting as a unit and not
&
iv

iiv

rotate

vuoumuu,

two or more separate entities.

pate

top man¬
actively partici-

should

agement

the

objectives

for

determination

the

depart-

trust

ment of .the bank, or be encouraged to aexpand with the aim net
of
making
real contribution to
II; is

income.

^obvious, also,-that,

important divi-

division, road blocks to unlimited
a

Sweater field for accomplish-

ment and individual credit in most

banks than is available havp nmhto the sentIipv
Jor *;rus'' ofiicers. They have prob1
ciir»h
thn
odnniiofn
»T*t>

for trust officers
nm o

a c

lems, such

nnn

the one of adequate
earnings. A brilliant solution of
those problems would
be more
conspicuous
and
receive
more
as

credit than almost any assignment
,,

•

rr,1

•

sion trust department in smaller

M decisions Ts to

—pities

objectives, coordination with other
departments, etc., top management
should work closely with
ment officials for

depart-

the good of all.

Proper Staffing of Trust

led to

the selection

dency

best
I

one

that

not

ambitious and

what

largest and
York

those

one

the presi¬

for

our

New

managed

banks.

who

the

think

most

po¬

tentially strong young men should
bypass the trust department There
is need for strong men at the top
in the important management of.
these
huge trust funds, and retnese nuge trust tunas ana re-

sponsibilities. j ilso think the
ladder up provides work of the
most

absorbing|

constructive

closel

stimulating, and

nature,. Here again

with

department

,.t

work

officers

cioseiy wun department onicers

reasonably

were

that

income.

satisfied

Then

with

long
period of declining interest rates.
The

value

constant

of
or

the

came

fund

remained

increased

even

cases, but the income was
just about in half. This called

many
cut

for

much

initiative

and, as
change of at¬

work

the

trust

technical

nature

knowledge
tained
of

that

department is
and

requires

only

can

through doing.

ob-

Continuity

employment is particularly im-

portant here.
can

Not

all

technicians

become officers and some be-

unhappy over their future
outlook. Sympathy with this situation is required so
that these
staff members may receive proper

one

the

greatest

Trust

Divi¬

sion of the New York State Bankers

Association

recognition and compensation for
the

necessary
that they do.

sponsibility
the

trust

matter,

effect' redefined

ered

and

ment

dent

man

fund.

nQw

le§al

Dermits

rule up

the

to 35%

here

mvest-

beneficiaries—a
the

banks

were

stqnt
ment

as ,a

fng
in^
Thls aPPlies with equal force to
the fees well as tofor trust rates.
charSed interest serv*cesi as
The

Division of

in the Trust

men

the New York State

Bankers As¬

by George
Vice-President of City
Trust Co., New
York, and Bernie Gray, Presidentof Northern New York Trust Co.,
Watertown,
have spent many
hours in their efforts to raise the
statutory fees for trustees, and
have been singularly successful.
However, as you all know, the
sociation, spearheaded
Barclay,

Farmers

Bank

which were obtained

last increases

not as

1946 were

much

as we

hoped for and certainly did
not equal the increased cost for
handling those accounts. Consey—mpn aTOi this

had

quently, these sanoe^men a;nd this

organisation, are.'PI^ wojK
toward the submission 4o the

IJli^
lnS

vv V»

V*.

Legislature next year of a pro¬
posal to: raise these fees again.
We should all be heartily in ae-'
cord
with their objectives and
;

•_

in making

department,

real

sure

or,

re-

picture,

them ourhowever^ i.e.side to this
support, the efforts

y*-

that

make them¬
their fees and
Certainly all of

can

increase

their net income.

trust°department Is'iiTgettfng

the" president

banks

the

selves

A fourth field, and a vital one,

another

There

^^tments^hav^wMiin

^ir conTol Ti^tions where the

a^d ttc "too

•

blind

alley
opportunity

concerned.

for that

far as confor advance-

Many

the large stockholders in a word,
the men who are in a position to
direct where business shall go.
Sometimes by direct effort, but
usually more effectively with officers of the trust department, top
bank officials may attempt to cbtsin. trust appointments. Too much
individual effort by the top brass,
|s n°f feasible, but once in a while
if takes only a word from them to
determine the result. Ideally, t^e
trust officials themselves should
be encouraged to meet and know

'hoe™e" fr0m whom new business
p

that

other major departthe bank, is not consid-

young

4_~

'
of

the

most

help,

top

management must be kept closely
informed of the plans, activities,

and current problems of the trust
officers. A device that can be used
in enabling top management to
function effectively is to schedu^
regular periodic meetings with
the managing officers of the trust
departments.
An agenda should

^1.

arrived at
by an agreement with the cus^omer company. These fees would
cover
services as trustee under
corporate indentures, as transfer
agen+ registrar, and paying agent,

any

statute but are

-wherever these

fees are below a

they

where

produce a fair

the duty
the bank
department
effort to raise them,

profjt to the bank, it is
senjor officers of
gee

the trust

tbat

ma^es every

p^g^t tell you that we undertook
sometime ago and found little
reststance en the part of our customers to the increases.
In nego-

tiating

these

increases,

are

and we
before
In other

dealing with financial men
should have all our facts
we

present our case.
if we make a

words,

sta^ei?en^

losing money in a
certain account, we should be able
that

to prove

are

with reasonable accuracy

Our
complete
and accurate to be convincing,
of enthusiasm and with the amCertainly many companies with
bition to go straight to the top in be
prepared beforehand by the which we are dealing have inchallenge the shortest possible time. Some trust men and given to the chair- creased the prices of their prodonly too of them look-around and in some -man and president in order to ucts many times during the period

tain risks and it is because of this

Ir.

any

of
a

pru_

glad to accept. By the same token,
this acceptance carries with it cer¬
-that

ment

0f the

legislative
recognition of the need for a less
restricted point of view—a legis¬
lative challenge to banks as trus¬
tee to
produce a better income
saw

and valuable work

Top management has

obtaining the
amendment to the law which, in

was

AU~

you stop to think of it,
compensation received for
banking services for the past ten
years bas not kept pace with riscosts and prices in general.

When

the

—

that previously obtained required
the purchase of common stocks.

aps,

and expenses.

t promotions, cannot be
ES^; t0 c ng
much to

the senior officers of corporations,
to the trust officers. Much of the the senior partners of law firms,

mentioned above, a
titude on the part of trust officers.
To get any yield comparable to

components—in¬

two

its

into

reviewing this 1

earnings, I like to divide '

field in which top

come

respectable7 figure '

any

into net.' In

matter of

commend .them for their efforts,
1 have no^oubtthat-^y. will be.
successful if we unanimously gi

Department
The proper staffing of trust de¬

bringing
down

to Provide opportunir advan(*ment and reward
^°r work wel1 done- Trust depart-

1?
!les

the

;

caPab)e ban~

aling of trust work alone

the bank situated in a small town the matter of attitude ,a
will have different plans for its Top management must

trust department than the bank
J.
in a metropolitan center^tUw
would ordinarily be no need of a
corporate trust or perhaps a pen-

fair net'
the personal trust *
a
hard time

had

have

per-

£eJ^at wlSL-needto dlspef
want and fJ

unv

Another place where

in metro-

banks

have produced a

divisions

com¬

the

Historically,

Compensation for Trust Serv.ces

alf

such

employees;

of the various trusts and
WJL
V«1 JIVWO U UOIU UIIU

operations is to

from

management

proper

that proper safeguards

least

income, whereas

seeing that

includes

officials

...1,

it.

£1"* aoV> t Ar<T t hT'rnTnnrafpt rust

§jvisions

come
as

the departmental setup givesi the

ordinate

at
.

better con- *

think it is in the

to increase

wood

officers

have

divisions

mittees

the

4«« nt

My answer to"

unqualifiedly

tribution, and I

up more than just what
environment offers.
In

own

;

the *.

toward

department

that is

from pro¬

financial

but

commercial

the

bank's earnings?"

personnel work, etc. An alert cf-

ficer

all

sales

bankers, namely, "What contribu- ••
tipn should we expect from the <

di-

our

review

stant

why officers should
interchange be¬

divisions.

tween

J!-

ROt the have suggested for con- *
least imPortant « the
I

change between banking and trust
department
officials.
There
is
reason

items

management can be very helpful

which

trustee

exercise

derstandablv"in*come"ben

for the

individual

executive

partments is

ridss

where

ment

railroad, utility and indus¬
trial bonds, and also mortgages.
Yields were high—5% or 6%. Un-

tremendous growth of trust busiin banks is

department.
to me, four

trust
seems

should

fields

by and large,
legals.
Legals

—

are,

meant

achievements

Instances, that I

aim

we must

endeavoring to be
T

our
our

will have

them; but

tude in always

if
If

clients

objectives.

their

In legal trusts, of course, this ran
that in saying "No" we
head-on into a law which forbade
being useful, even though'
intc

sure

our

.satisfactory

Certainly sometimes

are

Given this organizational setup,

have

tude.
To

held in the trust accounts.

been" it behooves the bank to make the
over-cautious atti-1 most of it; As I mentioned before,

individuals

guilty

many

the
it

help

can

There

of course, also department should be considered
;•••
'
dn
••®rv,c« depart-

bloodless

are

commer-

ment. I mean by this deciding
have 1 e
and no^ just men who wj!1 look what kinds of trust, business to
at -historical figures of the past, solicit or to accept; whether the
»

that banks
(» Hav.ng set up the proper
corporations; that staff, they should ube given the
best tools with which to work,
they are operated by men, men
This will mclude not only recogwho like to sleep soundly at night
nized statistical services, the credit
and find it easier to do so, if the
information available m the bankproperty in their care is invested
ft
WWV MAWV V**V
in triple A securities.
We must ing department, but also the right
no, the duty—to visit the plants
ibe very careful not to ever give
and talk with management of the
an impression that to avoid a sur¬
charge is the noblest ambition of companies whose securities are
«!urities.

the

thing

iv-uuo

capable, but who are also experts

able to have ideas

fi-

hp^n

to have

seems

in-

(1) It must staff the investment
unit with men who are not just

the investment of the
super-safe, low-yield se--

prevent
Tund

..m.,kv

of^indivTduals

and

with banks

banks

...

the
—

takes
"""VW

it
•— V

the following steps:

the

premise

dollar

Sng®than'banktn"

every

V *

°£ gr6at merit"

be considered for

lished for the safe administration

seems

objective the preservation of the
ame

What must the bank do

does

operating'

third

basis of having as their sole,

guard against it?

ground and so returned ex¬
actly one talent to his master on
Ms coming again.
This criticism
has, I believe, some validity. There
was formerly a feeling that a trus¬
tee was supposed to conserve, not
to create, wealth, and some trust
on

admin¬

poor

quality of judgment to handle the
investment of one fund that it

4he

officers

to offset

Remember

4-,

Help

Department

Trust

The

Can

Officers

Banking

His master, went
«l

Nothing

customers.

istration.

received one talent from
and buried it in

having

How

zation.

its

should be

We now come to the last

good job, and the fund

difficult

But the criticism is aimed

at the attitude of the servant

bank.

department.

erty he originally received, with
rvuch accruals as may have been
added.

rn L

has shown a profit. I^ave always
felt that the greatest advertising
the trust department can get—and
it is priceless—is the satisfaction

nor

to those entitled the prop¬

coss on

whole

our

hlslone

rust

thieves break
through and steal. At the end of
his stewardship, the trustee must
Aall

hanW thot

ollr
vfsion
Z
°a™XntSn urgeZ inte^

they talk with equal abandon in
cases where the trust department

primary responsibility is the
protection of the corpus of the

His

;;-us't7"so"'that

•

job. On the other hand,

poor

No
would advocate improv¬

misunderstand

not

case

are

°v^en

more1

«/:

business very long. While all of
us resepect to the nth degree the
confidential nature of our trusts,

afraid

are

the

that

Josses

fact
case,

investment record canexpect to stay in the trust cial banker should reflect on is rectors emphasized this to me once
hew the senior banking officers and said how regularly his or-

has

of cauin these activi-

an excess

iion hobbles them

directors

these

sources

department which

apcient and still continuing criti- ment, for a trust

■cism. of banks acting in

There

Tommitteef 'and U'means

trust

Department's Biggest
Responsibility

partial answer money entrusted to its care. Here¬
competition in in lies not only the risk of losses
the impressions banks give their but also a determining factor in
trust customers, for there is an the future growth of the departto

the

never

considered..The
that size of the meetings and how often
and they are held will be governed
cerby the requirements of each bank,

and other commercial bankine officer*
get for our clients welltrust
rounded
mature
and
seasoned training, and one of our top fiduPerhaps the biggest single rejudgments. It is because of this cjarv officers is a nrodurt
sponsibility of the trust departii.l
flin
„
rrient
is
the investment of the great care that I think our clients banking d
get the best bargain we offer in
to

such as invest¬
ments, income tax, accounting,
administration,

t>y vacations, sickness or

sometimes

possible

and

concerned

official
answers

Department

Trust

attention to the
not always the

this

It means tain banks

mcreasingly expensive.

At His Trust

this

and

June 4, 1953

commercial .banker,

men,

at least those who

have

unHmited

ter

the

banks

seem

potentialities, enbanking field in a flush

might say the president is

always picked from the banking
department. Then he avoids trust

work, goes into the credit depart-

give them a chance to consider
the problems ahead of time. Then,
at ■ the
meetings
the
problems
should, be* clarified by, the trust

that

cost

analysis

are

losing

must

money.

when our rates ■ remained unchanged. The same aoproach can
be made with respect- to certain
,

personal trust.accounts, i.e/agency.

(2431)

Financial Chronicle

Number 5226 ...The Commercial and

Volume 177

be done on a- head and hand -basis^-DoRBOrl A
I ft V all (nine ' Continued from page
but there are hundreds of thou- I1UWCII- HaLUVCll VUlllO
with our principals and be- sands of operational details in a
I
DaaJa
of their revocable nature, year, which eventually will lendflOydrLI¥610001 DOdldS
These

trusts.
tracts
cause

in essence con-

are

to amendment from themselves to mechanization. One
Consequently here hears the argument that personal

they are ooen
time to time

Rohprt

t ovptf

nartnpr

Brotilen. Har>ri ^

Brown

Government Bond Market and

Co°

trust, by its very name and na. ,
■... rprpntlv cpprpfarv ni
ture, is a personal relationship and defense hasbeen^reanoointed to
to go to our principal and lay the it is dangerous to talk about mareaPpointed to
facts before him. He knows that chining its operations. . What I am ^^p" tpr
every article he buys today costs thinking about does not contemmore money than it did years ago
plate interfering with that perand he cannot expect to continue sonal relationship in any way, but nits> Royaliurmin8
the
to get the quality of service which rather streamlining and simplifyLiverpool Inwe
have been giving him, unless ing the internal operations of the s u r a n c e

Probems of

with the proper proof in
should not hesitate

again,

front of us, we

is handled

account

■

substan¬

our case in the
increased statu¬
tory fees by every effort we make
to adjust to proper levels those

tially strengthen
Legislature for

which

under

are

r
•

some

this

to me that the proper
approach to the subject of earnings is not necessarily to increase
jhe charges for the product, but
first to make sure that every eifort has been made to reduce exways seems

ardization.
up

ing

existence,

0 v e

also

Lovett

Robert

re¬

the

committees

finance

one

should

Chicago Analysts Get
Slate for Officers

for here,; too, lies a pos-

sub- sjble

to effect real savings in

way

ways

expenses

believer

CHICAGO, 111.

—

The Nominat-

ing Committee of the

money,
dealt at

length

some

bring your income and
into line for I am a firm
that trust departments,

vailing interest rates, and they, in
turn, will be determined by the
supply and demand for credit, and.
by Treasury and Federal Reserve
policy. While the present boom
continues, it is reasonable to expect a continuing restrictive pot¬
icy by the Federal Reserve Sys-

new

Investment

future,

issues at a

new

procedure

tern, although this does not preelude an easing of the situation
over tough spots, but such easing,
which might well- be accomplished
largely by open market operations
and
re-purchase
agreements,
should not, in my judgment, be
interpreted as any reversal of
fundamental policy; The Chairman of the Federal Reserve Board
recently made it very plain that

to give consider-

offering

would in

been

procedures, whatever they

costs of time and
trust business. Banks, to
I have

competitive

Not

discount,

appointed
the

ation

has

the

for the Treasury

Mr.

zations.
L

coupon

time in the not too distant

organi¬

ance

in our drive for standardiz-

our

may

in the personnel
field, have had to keep pace with
.'the rising trend in salaries and
•this item of
-this Rem ct expense has taken a
'

and
insur¬

Group. He had previously served
in these capacities from September, 1946 to May, 1947, when he
became Under Secretary of State,
and from May, 1949 to September,
was to reduce the cost of admin- 1950;
when he was appointed
istering small trusts. This was not Deputy Secretary of Defense
so much a mechanization process
as what might be called stand-

importance that it should receive
constant
attention.
Experience
teaches us all that salaries and

marine

the operation of this type of fund,
and provided further benefits to
the banks which have set up such
funds. Qne 0f the primary purp0ses of the common trust fund

i.e., costs. All of us are
fully conscious of this problem. It
is so difficult to solve and of such

handling

fire,

casualty

amendments
expansion of

which permitted the

penses,

was

one

largest

some

legislative

through

Certainly when we discuss fees,
we also think of expenses.
It al-

fringe benefits represent
stantial part of the total

enacted

the

all know that
yeomen's work was done by
Trust
Division
in
getting

nevertheless,

was

of
country's

York,

before the Trust Divi¬

Association

ers

of Trust Services

Expenses

this law
ago,

New

Group,

sion of the New York State Bank¬

;

Y •*'"■'*/

While
years

own

our

control.
.

important

very

was taken in the direction of
simplification when the common
trust
fund
idea
was
developed.

that

It seems to me

fees

department.

fair

step

profit.

Treasury Financing

certificates, as after taxes, the yield
thereon is 1.26%.
Similarly, the
2%s of June 15, 1958, with five
years to go, yield, after such taxes,
1.42%, and to compare favorably,
a new five-year issue would have
to- carry 3%.
It is readily seen,
therefore, how market conditions
complicate
the Treasury's
program.
It might be logical, some-

2%%

his

living

revocable

accounts' and

which

degree be significant

weakening of government
credit, and which might have a
definite appeal. Let us remember
any

when inflationary measures no,
longer threaten economic stability,
monetary policies will be eased,
When that may be, no one can
state with any degree of assurance, but a good case, I believe,

that the world did not come to an
en(j when governments were permitted to break par, and the issuance of discount obligations, while
a novel departure from traditional
financing, nevertheless, would be
a

could be made for

perfectly sound procedure.
Portfolio Problems of Banks

end

Philip

consider

the calendar year.

Should

hank issues with

jf any>

over

year>

own

our

of offering few mand
maturity much, c9mes

policy

Treasury

Biggert, 1 extend?"

possible slow¬
the

as we near

that prove to be the case, we
individual problems. By reason of nufiht. logically expect there would
the
passage
of time and past
san\e levelling off of the delet

Now

f°r credit. Until that be-r
clearer, however,, and in

view of the large cash needs of
the Treasury,, there seems little

the majority

Analysts Society of Chicago have of banks find their Government
presented the following slate for portfolio extremely short, and we
1953-1954:
are constantly being asked "Shall
President,

ing up of the boom

justification for anticipating much

change *n -interest rates in the

I wish. I could answer

immediate future.

like
Consequently, maturity exten-^pensemas taKen.
like all other- income producing Scudder Fund Distributors; Vice- that question with no possibility
all other income
sbigv biter* out of our .trust^depart- departments in the bank, should President, William G. Maas; 0f being wrong, but even if I
vu.v.ivu iu
my uuii», suuu.u jl ivu»v>v..v,
■>
ux uc1115
wi.v,»6, uui v-vvii. . ijl 1 sion is not a matter of pressing
INTflt
Of US ever
' /-< »-«•»«-...in
t
: ——7
T~
.
ment earnings. Not one 01 us eve
make a proper contribution toward Treasurer, George L. Emrich, Jr., could, the same answer would not need, although I might add that
t wishes to embark on a program 01
the ne^ earnjngs 0f the bank. As Brown Brothers Harriman & Co.; necessarily apply to all banks. The when it becomes crystal clear to
JFeducing^lanes, so we must con- 1 mentioned before, corporate trust Secretary, Richard C. Barbour; majority of banks have extremely you and to me that the peak of
/tinuauy search tor otner ways o
activity usually produces a profit, Board of Governors (three-year short portfolios but, unfortunate- rates has been reached and that a
I accomplishing our objectives, up
and the margin is Such that it term, expiring 1956), Park Hall, ly, that is not true in all cases. If reversal is in the making, it probof these is through
mechanization. warrants substantial effort on the " Russell Eddy, Brown Brothers a ...
bank has a substantial portion ably will .i_ _ equally clear . to
be . . ^
rTtfir
recordations:
that COrDOi
t
x,...
.
.
, .
.
;My observations are that
cp£pp~ part of the trust department offi-, Harriman & Co.; Hartman L. But- of longer term issues in which it everyone else, and a concerted
rate,:.1 trust work lends
.nsep^to cers to increase the business qn ;ler, and for a two-year term, ex- has considerable depreciation, I program of maturity extension on
1 mechanization
to a
toramrgreater their books. As to nf-Pina poitd tViot piling 1955, Robert Peltoh,*> F. S. would be reluctant to suggest as- the part +/"v banks would be im¬
personal trusts,
of
"t
0_
n,,v«inrf
K,r taking nrMcihlo
nn
Jah
degree than personal trust ac- our onmrvfrrillar'c office says that i\/r
comptroller's
Moseley & rin
Co.
' t
suming further hazard by folrintf possible to accomplish, as under
counts, but I am not convinced the margin of profit is too small
Members
of
the
Nominating on more. Likewise, if a bank has such conditions, the supply of
(and even our trust officers are Committee were Glenn M. Trum- a large loan volume, indicating a bonds available in the market at
^ that we need to accept that as a
fact and therefore assume that we inclined to agree). Nevertheless, bo, Corliss D. Anderson, William substantial portion of risk assets, the prices then prevailing would
have reached the limit of mech¬ I feel that the senior officers of D.
Heer, Jr., Arthur O'Hara, and it seems imprudent to assume fur- probably be inadequate to meet
tvt

oorninBS

0
f»nP

•

•.

....

■

nrp

„

r\l 1 -r

anization

Personal Trust the

the

and
the
officers
in
the trust department
have not even scratched, should never forget that "the ulti.

..........

I think we

As a matter of fact,

Department.

bank
ckarge 0f

unit costs. To take the easiest one. an(j trust business, in spite of the
first, i.e.,; corporate trust activi-.;;.difficulties, is no exception,
ties, I think thst with,..very iev^t
rrA^r
_c
.
^
_

^^ent realize

exceptions banks have only made
a start in the right direction.
Certainly
many

all of .you have installed
machines. I know that our

w.pm^
thtoro
•

the

■

with

hristle
a

ln,

few

last

the

*
Parties

Tn-

machine

looking

are
which

now

at a
will

nrnhahlv install
sinre
probably install, since nreliminarv
preliminary
studies indicate it will
increase

by about one-third.

t5SL?i'?SS£2
These studies

also indicate that it is possible to

accomplish

equally

tadwfdual%ruste2?
individual trustees?'

ahd

and

lenge of the highest order. There

are

unquestionably a permanent
need for these fiduciary servipes,
1S

commercial

startling

re-

which

the

this field

can

25"YG3r

are proud. Trust officers,
I

period of years.
of

volume

whether

and

such

It requires study
savings to judge

outlay is

sound

women.

analyzing opportunities

certainly find n in th0
<jepartments of nearly all

trugt

The chal-

the banks that I know.
j

ndg

S„

there

th„sp

the

need

is there

iln£.i??iv

Now

Proprietorship

PHOENIX,
Hacht

LOS ANGELES,

Calif.
wr

now

Ariz.
sole

Willard
proprietor

—

J.
of

Building,
r»

The

difficult

presented

problem
in

the

G. H. Walker & Go.

maturities moderately

'tending

means

Now With Walston
(Special

to The Financial

Chronicle)

decline in risk assets and

earnings,
that

I think, therefore,

and

circumstances,

such

under

there is some justification

for as-

Calif.—Frank suming further market risk in orO. Mastick has become affiliated der to replace, in some measure
with Walston & Co., 550 South at least, lost earnings.
And the
LOS

ANGELES,

reverse

true.

Thomson & McKinnon
to The Financial

are

Chronicle)

necessitated

governments

H. R. Bracken II With

(Special

When loans

steadily mounting and the sale of
order to maintain reserves, assum¬

is not purely a tem¬
situation, then the degree

ing that it
porary

John

of market risk should be lessened

Graham

BEACH, Fla.-r-Henry R. by selling long maturities, rather
HARTFORD, Conn. — John E.
Bracken II has become affiliated than short.
Graham
has become
associated
with Thomson & McKinnon, 927
The Government Bond Market
with G. H.; Walker & Co., Ill
MIAMI

(special to the financial chronicle)
FT.
LAUDERDALE, ■ F1 a. —
Personal Trust Department; nev- George E. Hudson is now associ- Lincoln Road.
Mr. Bracken was
erthelessr here, too; we feel that ated with Roman & Johnson, 235 formerlv with Westheimer & Co.
attention must be given to find a Southeast Fifth Avenue. Mr. HudColumbus
Ohio, and
way
of mechanizing more and son was previously with Francis
uhuihuus, umu
pn°r
more operations.
Surely some of I. du Pont & Co. and A. M. Kid- thereto was with Merrill Lynch,
the administrative tasks must still der & Co.
Pierce, Fenner & Beane.
-

admittedly

John E. Graham Joins

Anderson' Jr. is now with Neary, wken loan volume is declining
& C?'' 210.^,est-Seve.nt and you haveofreason decline. In
to expect a
the
Street' members 01 the Los An" continuance
other words, a decline in loans
geles Stock Exchange,

Spring Street..

Guardian Trust Company, Seeu.

ity extension, there is something
'to be said for the policy of ex-

Chronicle)

,ose who seize the^oppor- a

Preh am,. especially that of mo.e
adequate earnings, are m a con—

20-year bond, can they know def¬
initely that it can be carried to
maturity. Getting back to matur¬

Neary, Purcell Adds
(Special to The Financial

can

Joins Roman and Johnson

investment.

J
to buy bank-eligible 2^s
Tavern May 22. Wrist watches Sept. 15, 1972/67 back in 1946-at n°d of time, and establishing a
were presented, engraved to show
and saw them selling today well balanced maturity schedule
length of service which ranged
Signed to provide the maximum
up to 49 years. Including branch he had a non-risk asset, true, ne d
,
■
rnmnatihle
office personnel, the club has 50 may be able to carry them to «egree_ ot earnings compatible
memhers.
of
Which five are maturity deposits buys bank with with the minimum, risk, might
but when a a 15- or
members,
demand
prove worthy of consideration.
dinner given at historic Fraunces as

for useful service and for advancement

classifying all mediate future, we may well be

members of the government securities, regardless approaching the time when a proTwenty-five Year Club of Laid- of maturity, as non-risk assets, gram of moderate maturity exten-7
law & Co., 25 Broad Street, New Non-risk at maturity, yes, but if si
ith th objective o£ freez_
York
City, were honored at a any banker were so unfortunate
nt r.

^tme»t officers, and trainees
T

authorities in

many

Thirty-three

in-

they

We must be aware that it will re¬

quire a fairly substantial capital
outlay * to
make
mechanization
truly effective, but an estimate of
sa
savings should allow for amor.tizaton
of the capital outlay over a
tic

Club Hold Dinner

ory

V';v.

suits in other phases

of corporate
trust activity. 'Certainly such a
program would warrant the closest attention of top management.

banks

service

participation
participat,on

major
maj))r

The

e™enSfe» 1'co'uwtot^e'donl and
new

many

been

vears

astounding, These not only
These^not^onlyjn^
crease the speed with which items
can be handled,
but also handle

; by machine We

how

realize now many

The responsibility of intelligently
handling these vast sums is a chal-

but

astound?ne
•

,y,i'

anr|

them

npw

fmprovements tSaThave

mada
•

•

Tlpnartment

Trust

•

and

the^ surface m deje^lopingmechan- ma^e aim of any business activity
Jcal operations that will lower our |s to achieve a reasonable profit

extending maturities, the demand.
I - would suggest,
instances, to pay a therefore, a careful and constant
large percentage of the increased appraisal^ of the general business
earnings in taxes. In this connec- and credit situation/for although
tion, one may also not be in ac- it may not be: today, nor tomofcord with the policy of supervis- row. and possibly ndt in the imther risk by

John H. Weedon.

Let

„

Picture

look

at the market

Pearl Street, as manager of the
pic- tradiag department. Mr. Graham

ture as a whole. The price level
- mprlv with Brainard-Judd
0f government securities will be was formerly^
determined almost wholly by pre- & Company for 16 years.
w

«8

The Commercial and Financial Chronicle

(2432)

Rates Not

Continued from first page
;

%As

many directions, must at least
term of office

remain

New

All this

one

Continued

the

one

other

these

two

modes

debt

national

our

years

ago

else

Economic

de-

Progress

$68.5 billion

taxes, which

nearly twice as much as the

was

involved

history

taxation
in the

take

income

1952

was

Federal, state, and
amounted

governments
than 30%
If

taxation

people

bad

askf

also

however

tax

the

ask

of'

level

"Are

their

about

answer

high'

this

taxation

noticeablv affecUng tne American
noticeably affecting the American

the

effort

surprisingly enough
I

United

since

satisfactory

records

began

in 1910), to 3,881 000 in 1952

(but not

economic

Colin
coin

analyst

Clark
ciark,

Australian

answer,

many

would

distinguished
disu gu snea

the
me

economist

and

statu-

The

oduc

^+tlla+1

JLfo clnlL

without

peace

ion..

e.ia

injuring

not, to be

are

-,rer

sure,

P^CGi

7T
theless, the vitality displayed by
American business in

t!1

the

face

1<>a<i f0fJa*a4t10? 1S amazlnStestimony to the

It h
bears striking

strength

the

American

nomic system—the private

prise

system

business. These
all

the

over

run

are

the

Ameri-

men

nation.

Indeed,

thrG would the ^t11 underGar
in,the
I
say "I

fit

vou

have bepn
4

TTni+iri6 States to
^?acm+
United

"carry"
+ix

future
gram

the

and
is

course, it must not be supposed that a market
requires the Treasury to pay more for its money,
would continue to provide cash for other borrowers at the

which

otni* toe

present
the

pro-

load

required

bideftnite

tne indefinite
defense
of

taxation

finance

*me

charge. The fact that the Treasury appears to be
facing higher interest costs means, of course, that others

Russian

Does
will

J must likewise pay more for the funds they borrow.

the

On
assumption that the Federal Reserve refuses to feed

continue

Soviet

Union

American

out-build
arms,

the

will

economy

stronger, not weaker, as the
by."
•'«
I* Tnflitinn n 1)31,^9

own

years

the business

•

What

tion?

iu
the

There

thprp

prospect of

are

two

•

infia-

subst|ntial

may

;

Us?

urpat

Will there be another great de-

basis

the

use

recent decades.

From

population

1939^

the

106.5

Threaten

nnnthpr

million

figures
1920

123.1

from

rose

million

(15-6%); fr°m 1930 to 1940 it increas<ed to 132.0 million (a gain
0f

7;2%);

and

1950

had

press10"' °r. ls Prosperity per- jumped to 151.7 (an increase of
i T!J^ answ;er to this 14.9%). The following table predouble-barreled question is No to sents two projections of future
eac„h Part. The present state of population growth-one assuming
understandmS <>f business cycles. a decennial increase of 12% (A),
implemented by appropriate poli- the other, 15% (B).
cies

the

govern_

and labor

make it

part

business

ment

weaDon<?

Prevent

the

depresslon
of the

tion

th t

t _d

PYis1,

„ow

that

depth and dura_

<B>

Decennial

any

resembling

even

(ln mlIlions)
<A>

will

„V

occurrence

mo>s

Population Projections

Decellnia»

Year—

increase
12%.

1900 Actual...

/ 76.1 ■; '

increase
15%

76.1
151.7

1950 Actual...

151.7

not. I960 Projected

170.0

174.0

1970 Projected
1980 Projected

190.0
213.0

200.0
230.0

reces-

1990 Projected

239.0

264.0

sion*. The conclusion, therefore, is

2000 Projected

268.0

304.0

yet

tbe

otber

band?

these

weapons

to be sufficiently delicate
and precise in their operation to
seem

be abde

minor

ward

orrasional

pvnert

cessions

futPre

years

have'

shall

never again
depression like that

great

the

'30s.

;

The

Threat of War

ourEconomy
do

can

not threaten

our

destructive effects
scale

peace. In

sofved

might have

not

pow

such

gigantic

knnw

not

and

progress. An

all-out war, however

wh^thpr

hnnp

fnr

the entire

•

° dlsastrous warProgress Ahead

Assuming, then, that there will
be no an_out war> what progress

expected

economy

states

Experiencing

^laies txP®riencmff

the
in

Greatest

greatest.

Population,,

iQ^n

state—

®iai1cT

•

increase

\ g!^0™13
3, Florida

"eas®

—-—

46.1

...

Nevada

Marvi?nri°n

39.6
"""""

MexicoII__II

9. Utah

45 2

t' t;evaaa
5. Oregon

8. New

53.3%.

ll'%f
28.1

25^2

for

10. Virginia

the

11. Michigan

21.2
20.2

ahead?
.

significant clue to probable fu4"re trends. The following tableshows
states that grew fastest.

12.

American
-

war

continue to

coun-

the states;
important,

between 1940 and 1950 provide

rpa,

PaPer is Posited on
|be aSsumption that there will be

reasonably

among

factor.- .The increases experienced

what the Krem-

eventi

Migration

It de.

all

any

diqactrniw

not be uniform all,over the
;try4

wnetner percentage Increase

war

?"alysis of this
no

Geographic Shifts in Population
The increase in population will.
will

foregoing analysis suggests

tbat tbe Dureiv domestic nroblems

S iwlIb can
dlsar^nanJen^ II»-however, the
policies force the United

Depression

wtlT MSe°th

gr0wto

timates,

?r band, ^ V* for

years

States

slowly

1S often pictured to be.

old

in^i°n- The American
would Prefer

clo

g0?

rise

"°t the destroying terror which

oeen expect- there M11 be
if t ^ our pends largely
bankrupt
lin does bWp

Ampr*'y' You are mistaken. The
sary-

fae

incomes

^ average.. Inflation is not

scaie, ,1

pvnpr»t

eontinues.

whose

tha"

Kremlin,

stand that

incomes.

ulation

eco-

yourselves, bankers and businessmen

higher

„

dollar incomes. It also harms those

enter-

also

and

—

vigor of the men who
can

steady

in future
.

seem

to be: (1) a shift of parental sentiment m favor of having somewhat more children; and (2)

barri

Jevel

reversal of earlier trends

toward

ice

antj_depression

n°n"

join

+ifiar'
asser1Jln^ taxation can
Jbat : 5% is
he limit to whic
time

directed

are

must be NO!

"surprisingly" beause

say

which

fore-

few years

has usually de-

level)

wage

Drjvate

is clearly in the
we

unhappy
the

But, of

level

price

stabiliz^tion

economic

thing

answer

affirmative
"Is

of the national income.

affima ive
bills'"

local

ask, "Is this high level of

callv9" the

Only if these bonds must

expected to flow from this fact.

The

war.

the

wafsomewtoe Inflation harms'Z\e tested

1952

$290 billion and the combined tax

accordingly, that the old bugaboo about wrecking the

all-out

be supposed

may

neighborhood of $20 billion,

The national

were

creation into the market in the future,
community throughout must reconcile itself
to the idea that higher rates will obtain
throughout the
money market. We must face whatever consequences may

United

become

prices

commodity

though accurate estimates are not
yet available, it

financial institutions of the country can well and safely
he put on the shelf.

funds of its

the

should

States since the founding of the
republic shows that typically the

entire_ national.income in 1933. Al-

would any important dif¬
ficulty arise—and then only if the amounts were of real
consequence. About the same may be said of the holdings
©f other types of financial institutions. It would
appear,

the

for

prospect

unless

made

were

birth rate, per thousand of the
taction stop economic cljned slowly in peace time and population, increased from 18.4
progress.
At the present
time
h
.
rapidly during major !" 1933 (probably the lowest in
wars. If this tendency is repeated
ho-iabon's history) to 24.9 in
1952 the Federal Government colQnd
.{ poIicies
both public and 1952. The factors responsible for
lected

par

say

the

purchased at excessively
higher prices some years ago they should have by now
been brought .down
through required amortization to
.something not very far above par. No bank is or has been
required to carry governments on its books at less than
par, and the only amortization requirement now in effect

same

population

many

rather summary fashion,
that no big inflation

shall

Will

were

relates to par, not to the market.
he sold when they are below

growth

will

income

and

Taxation

Now Well Amortized

these bonds

latter

the

prospective

the

scribed presently.

purchased at prices well below the peaks.

income,

founded

in permitted to deal with these sub-

States

The

popu-

back. These forecasts suggested
gradually slower increase in the
population, to a peak of perhaps
160,000,000 in the 1960's to be followed by a decrease. The few
forecasts that disagree with this
y.iew and projected large and continuinS increases were criticized,
Actually, births rose from 2,307,000 in 1933 (the smallest number

rises.

rapid growth of the

lation, caused by a large increase
in the number of births, has con-

when it does occur?" If I may be

become

national

The

casts that

relative

permits to

today. The first question is, "Will
occur?" and the second

jects in

smaller,

which

inflation

mately its present amount, it will

time

than

cussion

necessity of shorter term. Reference to
course of market
prices reveals the fact that such
long-term bonds as may1 be held were either acquired
number of

found

each

is, "What harm does inflation do

na-

growth of the national income,
the debt remains at approxi-

will

problem

inflation,

the

lor the most
part

sub-

was

The real solution to the national

past long-term government obligations—

are

billion)

($265

the 1952
tional income of $290 billion.

.specially those eligible for bank holding—have become
progressively of less importance relative to the total of
outstanding issues. In particular, very few issues of the
longer term variety have been offered during these later
years. This means, among other things, that the holdings

Now

1952

production

of the banks

Population Growth

worth many more minutes of disStates national debt

stantially less than

years

Let's take a look our then at
the future growth o£ahead country

The United

.financing the Treasury can hardly be exaggerated.
We most earnestly hope that the Treasury will stick
to its guns, and obtain what funds it must have without
the aid of the Reserve System and without resort to John
L.aw type of financing. Only in this way can we hope
to make a real beginning in the long and tedious journey
; back to financial sanity in this country.
:
Such a course on the part of the Treasury would
(will) be attended by less technical difficulty than might
liave been the case at times in the past. Time was when
it was commonly said that such a policy would wreck
J the banking system—and do the Lord knows what else
; to
many other segments or sections of the business com¬
munity. We never were able to concur in many of these
alarmist allegations. Such foundations as they may have
had in the past have now largely vanished. In
particular,
any hazard to the banking system by reason of its holdings
of government
obligations at high prices no longer is a
problem of first importance.
For

wrong.

expansion.

total available volume of funds

the

page

reversal

growth trends of

weere niweronga e|nd 0Ss„baSequent

ing decades her greatest economic

Money Needs

largely by the holdings already existing; in the
other it is determined by the reserves of the banking
system—which in the final analysis could be made to be
the practical equivalent of the gold held buried at Fort
Knox. The difference in the effect upon the welfare of
nation

from

toe

events have proved that they were

•

fixed

the

th*

America' , Going Bankrupt?
bm
m
0% ■
i
. #%

is apart

case

that of the 1930's—with

■.

from, although related to, the Ad¬
ministration's announced intention of getting more of its
debt into long-term form and into the hands of nonbanking
investors. It is one thing to load the banks down with
obligations which they pay for by writing up the deposits
on their books; it
may be quite another to tap funds al¬
ready in existence and owned by individuals and others
not in a position to increase their funds more or less at
will.

n0wed'LmTonfusTng

■"

per-

haps start.on ,the downgrade. It
worst depression in our history-

hope that the prosperity of which we now boast is not
dependent upon heavy subsidy from the man who has
saved some money and makes it available to business.
'■

meant

going to level out and

; were

perspective there is not a rate in the money market now
that is not rather extraordinarily low. We should certainly

money" must, accordingly, be found in the months ahead.
In brief, the Treasury obviously must seek larger funds in
a market which is not as
hearty as it has been and promises
to be less vigorous as time passes.

really

about to stop growing, that things

■

large spender.
It would appear that President Eisenhower will have
his way in the matter of the tax laws, but very sub¬
stantial deficits are in prospect nonetheless. Previous
over-estimates of tax receipts are now being exposed by
the course of events. Very substantial sums of "new
a

they

cSTwal

about this aspect of the
matter consult the record of the-past half century—or
longer if he prefers. He will soon discover that in historical

for the first half of its

Thursday, June -*4,-1953

meant. What

Let him who is inclined to worry

Jtt

But need these consequences begreat or burdensome?

T*
■*S

High

Texas

23.9

few .years back .there

were
Two of the states—Maryland
an3
w
were asserting and Virginia—experienced much
ours vT
become a mature of their growth in the vicinity of'
ec0nomy- Now lf by "mature" Washington, D. C:t as the Federal
u

!hey meant; that we were no
longer, a primitive society, .that
we

were

some

sense

other

Government expanded. The con—
trnuation of this trend is uncertain.
A third—Florida—grew for

completely grown-up, they would have been familiar reasons. In the fourth—
right. But that is not what they Michigan—a high rate Of industrial!

different questions in the
analysis

'Number *5226

[Volume 177

Income

development stimulated growth in
the metropolitan areas. The other
eight states form a geographical
unit—a great, wide arc extending
from the'Pacific Northwest down

Per

help

growth of

the

stimulate

entire

the

1950

faster

crown

than

r>pntapewi<sP

the

239

in another 50 years (and partially

and

321

330

closer
decades
ahead) will be able to afford to

These

1970

Projected

2,268
2,722

431

580

626

1990 Projected

3,266
3,919

781

860

1,050

1,191

2000 Projected

United

The

^tatec

nonulation

npr-

nonniatinn

was

nearlv

100% greater than the 1900 figure.
The
1950
California
population

454
'

Secrets of Progress

Projected growth, this rise in real
income so that the average American family will have a real income in another 50 years 2 J/2 times
as great as **
ft® n^fac-

times

of the

that

nation.

patterns continue in the
future, California's population at
these

"rt cons^

If, however, the California pershould be only

average3 irf the
in tne

significant of all, a tremendous
technological development.

the

rest of

2000 would be 40 mil¬
lion. It would not be surprising
if the
1970 census would show
California to be the most populous
a population of 21 mil¬
against 20 million for New

state, with

State.

York

may

moving

now

are

the

Toward

takes

output

be enIncreased
forms. Even

going to

many

hens

and

(2) Since per capita productiv¬

will
and

(3) Since the real income of the

people of California may be expected to be about three times as

(4) Since most money is held in
the form of bank deposits;

California banks may be expected

great

in 1970 as in 1950.

fect of reducing our
ards.

living stand¬

Not so, however.

continue

will

standards

Our living
rise,

concurrently with a population
increase, as the two have risen
simultaneously in the past.
Average per capita real incomes

rise, as out¬
put per manhour increases. How
rapidly will this output increase?

may

be expected to

It has increased

will

also

and

since

reduced

addition

winter

gradually,
vacations
(in

summer

ones)

will

become standard practice,
the decennial increase in annual
uie
uecen...,! .uc.ease

slowly

recently
breed

Cheap power—dirt cheap power
on the wav
It mav come from

energy! or

from solar en-

from something else. But
it is coming, and it will further
revolutionize American Industry
With cheap power will come
ergy, or

water for the entire great
— by
processing the

West

water of the

Pacific and piping it

S. agriculture,
Moreover,
since ' industry
uses
more water than does agriculture,
the location of industrial plants
the

pattern of U.

will also be affected

tremendous-

ly. Both factors will further stimulate the growth of the water-

Wells to anticipate

higher

standard of

new

will be produced types

goods

which

one

can

hardly imagine.

of the amazing deGracious

The difficulty of suggesting the

the modities would have been introwork! force remain^ about .-.the duced by 1950. Who would have
same as a percentage of the, total
had imagination enough to anticipopulation.
' pate the development of automo; The
following tables brings rio- biles,
busses, trucks, airplanes,
gether .the population projections widespread use of telephones, inand the per capital income estieluding transcontinental and inmates, and presents two projec- tercontinental telephony, air con-

jdecade,

prqvided

that

;

■

tionsi

for

based

the

nattonar incbrrtb-

the two population pro-

jections.

If the decennial rate of

increase

output-per -manhour

dttfontog,
refrjgerat0rs,

vacuum

cleaners,

toasters, motion pictures
with sound and color, radio, telepop-up

■

ures

Livimr

national

raised

price
down

year-end, to the undoubted hard, requiring a lot of pres¬
sure to drive it lower, while
chance that the current outs
it should tend to bounce

:'{

sj:

Rail Earnings
The

these things surely -would

Impressive

publication

addi¬

tional railroad results

for

April

former top
Investors cannot be
lllvcawls c<umul w

been dominated to a large extent

;tb

nrosress

pleased
of our inter¬
vlcttscu

wu? mf Progressour inter¬
emanated from New England. The national affairs. The prospecPuritan system of thinking was five loss of Asia will render
by

the

Puritan

which

recorded in 1942,

$902 million. The 1953 fig¬
will

ure

fourth

h i g h e r

if the

quarter does not

counter

en¬

business ^setback.

stern and severe, and frowned our domestic position more Up to then, the monthly com¬
8™*:y am1 Pleas«re- '^
insecure, will make a very paratives will continue out-?
01 xnese very quanxies, ix naa sur.
»_
.
.
, /
vival value in a difficult economic high level Ol taxes inevitable standing. Good news in the
situation. Moreover, it had char- for years ahead, and will re- way of splits and increased
acte.^ building value. As the jnf0rce the push toward so- dividends, as came from Sea¬
board this past week, should
cialism in this country.
be coming
along regularly.
country, they undoubtedly con- of this will make for-mvestor
tributed much to our national ,de- confidence concerning the The market does not yet ap¬
velopment.
outlook,
pear to have recognized the

None

The time is now coming howwhen some relaxation of

and

living

friendly
this

wide and

Psychological Liquidation

these stern values will be possible
and will encourage some highly
charming

ever,

Liquidation for psychologi,

and

SDeCulative

reasons

reasons is specuiax ve.

ment

permanent improve¬
operating efficiency

the

which

carriers have

vestors are taking a chance

country,

From the very beginning in New that their

ac¬

In- complished over recent years
as the result of their immense

investments.

fears will work out. capital

5n?lan

the

protects. the rate struc¬

ICC

ture,

promptly matching

levels with whatever

rate

wage increases may be
shaping
our background are on more solid granted, these securities will
thoughts. Economic necessity will rtrmind k!ni]itips true can 00 start to become something o:£
continue to be a substantial factor; grouna. equities, xrue, c
g the nature of a protected pub¬

major

role

but its dominant control is about
v^iif m^oht
be ended. Then the Ameiican and they well mignt be. i5ut,
people will find themselves
jn the first place, if the basic

utility, a

lic

far-reaching

since the 1920s and
trends hold, as there appears 1930s, and a change very de¬
PVprv reason to antici- cidedly for the better.

t0 be every reason o
Within a very short time, the pate, then most stocks would
economic problem — the problem not seem likely both to go
of making ends meet—is going to
be substantially solved for the
vast majority of our people. We

jftwn anfi
, ,.

sfav down Those
.
withstand

chnnlH

change

[The

views

expressed in thkk

necessarily at
time coincide with those of th&x
Chronicle. They are presented as*
those of the author onlt/.]
»
article

not

shall have continuous and ade- interim fluctuations . Should
quate employment, a gradually prove to be on a sound path R. W. Nelson Joins
shortening work week, gradually v buving from now on, on a
provfngCsSard It Uving. ™n scale down on the assumption
Shearson, HammiW
these circumstances, we shall find that quotations when released
(Special to The Financial Chronicl*>
that the task of making a living from their pessimistic enviHARTFORD, Conn.
R. Winwill no longer occupy the domi- ronment will

come

back to

—

throp

become asso¬
Shearson, Hammiil ^

Nelson

least at the present

of^pattern v

have of pleasanter living, the Old South more

level and

probably higher. /

has

Lewis Street. Mr. Nelsox*
a partner in Eddy

Co.,

back

easily if and as the general
environment improves.

history, the the United States,
in old South the
in

^Pt jn culteal pattern has
the old South, the

capitaaf the"list. Indeed, anyone who portant. income xyould.haye4oibe had ventured to predict all of
In the development

correspondinglji Z-%

the

now

ciated with

per

pro¬

should go

From

(as it easily may)
for

economic

great

structure

should turn out to be

20%

for

and better, richer living.

gress,

sibility of no cut this coming

new commodities that are coming to
can best be appreciated if we were
so
pounded annually for ten,, years, to put our minds back to the year much less under economic presor about 20%.r Average per capita
1900 and suppose that we were sure that the,stage will be set for
real incomes would then rise 20%'trying to forecast what new com- a basic change m our thinking.

output per worker may.be taken
to be slightly less than 2% ,coip-

per

economic

Quite the contrary. America is*
headed

the fa.ctar which justi- jf they do not, the eventual
hedaru1toe.em end result win be a big rally.
willthe total be a great in- Up until quite recently, economic Current•buyers^ and ^holders
there stream of goods, necessity continued to play the operating on the statistical
in

crease

that

gracious

living is going to 156 characterized
^ th,e intredurtion of an amazing

but there

kind

and the first four
because of economic pressures. , Henressed The chance that months has
reemphasized the
Gr™ economic necessity has ?e depressed, ine cnance
pretty much dominated the life JUSt this may happen must be statistical values to be found
Pa"ern of the American people, leading to considerable liqui- in this category of the list.
an(J has given a sober, puritanical Nation this unhappy spring Net income for this industry
cast to our thinking Throughout f
;nvpstftrq'
'
is headed back up around the

New Commodities

future

meaning the occur¬

some

disaster.

plication goes beyond the pOS-

desirable changes in the direction

deficient West.

Our

bankrupt —
interpreted

The Maihet... And You

Uritii^aS England "and' ove^most o^

otf research, future^annual
lonservat/ve6 Sinre\he wkweek only6
spent

new

at about 2%. per
being

Quarter

a"y guaranxeea xoiay zu xo wvo
more eggs than the average hen

arid

supposed that a
substantial
population growth
would have the "Malthusian" ef¬
might

virtually guaranteed to lay 20 to 30% our

cheap

The Growth of Incomes

The

hybrid chickens which are

atomic

Therefore, the total deposits of

And

century ago.
news
of a

today.

large in 1970 as in 1950; and

three times

sense,

rence

is will become ins at the
8°mg to happen in the United tall election ot next year, abStates in the next few decades, ruptly ending the almost
°ur economic progress is going to hysterical relief experienced
P*ve the^ faU after the election. If
^ypoiidiu me acmevemenx
.
of Spacious living.
the first chance in more than
p
fte Present, progress in two decades is foozled away,
f"ls direction has been hampered market psychology surely will

hen lays 43% more eggs

than did her nredecessor a

came

1970; and

doing even better.

are

average

going
term

technical sense, but in a

broad

gnvery oremarkable
ihtem SluoTht

going3to'be^increas^d'
is

not

that

velopments of the future.

Atomic Age.

consumption

even

United

the

summarize,

States

will be less haste and less

These suggestions are not very

Future

the cows and chickens seem to
cooperate in this progress. The
average cow is producing 22%
as the increase in national producmore milk today than the average
tivity and national real income; cow did 25 years ago. And the

about

Summary
To

increased, Continued from page 5

aged,

(1) Since national policy prob-

contributes to them.

and mental tranquillity encour-

ably will require an increase in
the nation's money supply as great

There
ye^s#;i

conquered, health

longevity

historians or an H. G.
indeed label the period into even a few

which

California Bank Deposits

per capita real income
rise about 50% between 1950

old-

improved,

larged correspondingly.

ity and

|nt0 a period of

going

^ worJd

in the year

are

fashioned.
Illness will

seem

moro

compatible with them, but rather

WjthHft? economic problem

the festest technological develop- imaginative. One of a Jules Verne
would need the
ment which has ever been known vivid imagination

century, the California population

lion,

ployed
employed

quant^y 0f capital goods

travel

perhaps

are

But, whether or not they are, eco¬
is not in¬

management,^ighway

things

nomic advance not only

nnr

centage. increase
tionai
tional average

The era of Personal aircraft is

consciousness.

civic

important than economic progress.

stern qualities which make for
venience and for all sorts of un- industrial progress. No. But they
expected pleasant aspects of liv- make for gracious living; and that
ing will pass beyond the imagina- is going to be our opportunity and
tion of any of us today.
our need for the decades ahead.

nt in the production of other goods
win an(j serviceS) ancj} perhaps most

L-entury

miminion.

K>e

rived from its heritage of Spanish
culture — charming qualities of
friendless, gaiety, tranquillity,
put two or three times as much courtesy, and absence of nervous
money
into a home as today's strain; and love of color, of music
average family can. And the aver- and dancing and simple enjoyage family will expect to get and ment of living. These qualities, to
will get a home which for at- he sure, are not the vigorous and
the

during

L^tfnnh^ effi^arv in
coming. The contraptions may be S0{Xed' the American People can
<=onitinum,g effi<cacy in our helicopterSi or some other type of achieve a better balance between
|
L manawmmt
machine; but they will make wor
and relaxation m future

California percentage increase was
six

contribute precious qualities de-

What is the explanation of this tractiveness and charm and con-

600% larger than in 1900. The

was

less hoodlumism and less*
gangsterism, and more decency

ness;

1,575
1,890

Projected

Poiifnrnia'c

nominationhas

culture, and the Southwest can

better homes." The average family

Population Growth

manv

South can contribute from- its

with certainty is much

tension, more
friendliness and!
more fun; less fear and less worry;,,
and more courtesy and more kind¬

$48

Actual

The
For

Old

$48

region in the future.
California's

The

$630

1960

that

contributions.

portant

^ne of the things which we can
count

1950

this

explain

and the Southwest can make im¬

im-

<B)

Actual—

they wffi continue

and

upsurge;

(A)

1900

mate, scenery, and industrial de¬

velopment

^fnBiWons)

Capita

tain West and the Southwest. Cli¬

practical day-dreamer.

Income

Year—

Coast and through the Moun¬

the

classified in 1900

been

Projections

1 !)50 dollars)

(in

(2433)

Financial Chronicle

.:The Commercial and

was

formerly

fj
30

(2434)

The Commercial and Financial Chronicle..;
Thursday, June 4, 1953

Bache Adds
(Special

CINCINNATI,
Whittaker

has

Staff

to The Financial

of present values would be to in¬

Ohio—David

slightly in excess of $5,000,000,
representing
an
investment
by
approximately 1,800 shareholders.

of the Company's

income

Mutual Funds

affiliated

become

in " view

the assets of Whitehall Fund

crease

Chronicle)

objective,

recent

By ROBERT R. RICH

Building.

extension

the

decline

liberal

manage-

the

advantage of the
in

ex¬

stock

holdings from 88.28% of

net assets

profits tax still a matter of
Congressional
action,
increased
prices is the basic improvement

last Oct. 31 to

cess

PROPOSAL

Han

vas

SPECULATIVE
SERIES

Prosptctus from

dealer

your

has

offered
Plan

its

assets.

Fund

;hareholders of Howe Plan

exchange

shares.

New York 5, N. Y.

Fund

for

their

Fund

present

The number of Whitehall

issued for the

issets of Howe Plan Fund will be
mnmnmnra*""**;;

iHinianaiaiai

««■■■■■■■■•■■>■■
m ■■■■■•aaia

HllMUIMiad

H«<I|IIISIII

Miaiiiiv
■Billtir

hiaaa

letermined

by dividing the

ket value of the net assets of Howe
"Han Fund on the date of sale

he net asset value of

Whitehall

■'■■■

VfELUSCION

■■■■I
■

■■■

mmm

■■■

Fund share.

mill
■■■■

K:::

Ummmemm

Bmaiaa
Inn
■■■■

mar¬

this

connection, Mr. Rusling

oointed out that after approval
by
shareholders but prior to the con-

ummation of the sale, Howe Plan
Fund

will

out

pay

its

share¬

income

FOUNDED

1.928

your

investment dealer

PHILADELPHIA

net

gain

letter

Howe

Plan
that

vestment

shareholders, the

Fund

management
favorable in¬

despite

results

and

of
the Fund, expenses of operation
ire
high in relation to those of
'arger companies and that for the
foreseeable

tional

future

would

result

investment

would

company

effect significant

operating

time

same

economy

the ad¬
vantage of Howe Plan Fund share¬

holders.

expenses,

Because

Whitehall Fund

participates pro-rata with several
other

investment

cluding Broad
Corporation and

companies, in¬
Street
Investing
National

Inves¬

tors

Corporation, both mutual
funds, in an arrangement under
which

investment

administrative
vided

and

research

services

are

pro¬

cost

by Union Service
Corporation, Whitehall Fund is
able to operate at a
relatively low
expense ratio.
In 1952 this ratio
49/100 of 1%

was

sets,

ratio

Howe

Howe Plan

with

ration

for

the

as¬

Rusling,

and

Plan

Inc.,

adviser

Fund, will be associ¬

Union Service Corpo¬
special consultant.

growth

sale

cannot

"While
year

addi¬

realistically

the

tobacco

knows, there's

Y'i

,<;■'*

combination.

According ' to/'Mr.

an in¬
vestment company of similar
type
and conservative fundamental in¬

vestment
Fund

policies
well

mately the
the

Howe

Plan

being approxi¬
size. The effect

same

combination

the

•

rates.

both

increased

E.P.T.

sales

Right, Mr. Funston!
rain

own

room

and

the

analysis

variables involved

that

E.P.T.
of

with

even

this

indicates to

E.P.T.

when

preach that

you

could

easily

50% to 100%

son,

this

men, women

"share of America." As
everyone
for communists in a nation of

and

investors—everyday people who

Canadian Fund.

Nome.

savings

the

securities

placing

are

honest-to-goodness

our

portion of

American

great

businesses.

Address.

pany.

American Power &

Incidentally, Mr. Funston, that's just what the Mutual
industry is doing. We've tried to develop a sound
for people to invest in American
industry, and through

way

■

Light, Hazeltine, New York Air Brake, North¬
ern Natural
Gas, Shamrock Oil &
Gas, Shellmar Products and
Studebaker Corporation.

DIRECTORS

of Scudder, Stevens
Fund, Inc. have declared

& Clark
a

1952.'

distribution from net income of

a share, and directors of
Scudder; Stevens & Clark Com¬

NET
were

assets

growth of the company is also
flected

the- number

clared

retail

spending

trade

year.

those

the

commensurate

dends.

...

increase

result

dividends

market

decline

stock

yields

line

and

the

20,

the

share,

1953

respective

funds

$38,108,285
to
$54.90

June 1, 1953, equal

per

694,165

outstanding on that date.
This compares with total net as¬

sets

eaual to

$38,045,895

$57.67

year

Scudder, Stevens & Clark Com¬
Stock

mon

Fund,

Inc.

reports

total

net

June

Oivi-

1, 1953, compared with $3,-

in¬

551,681

recent

asset

assets

Per share net
$13.89 on 326,633

outstanding shares, compared with
$14.41 per share on 246,440 shares

to be well in

interest

outstanding at that time, adjust¬

rates."

Stockholders

were

also told that

people have
talking about the problem of "more
stockholders,"
we—and our colleagues in the
industry—have been doing
something about it.
Some people say that for

CHECK LIST
a

SERIES 1

owners

AND THE INVESTOR

—and

I—Shows how all major wars since

young

ing

for

the

share-for-share

of mutual funds scattered
more

being added

every

Fundamental Investors, Inc.

industry we've done

good job of pioneering, with close

pretty

Diversified Common Stock Fund

million

throughout the country
Diversified Growth Stock Fund

day.

1259

have caused inflation, and
often devaluation.
Explains what

I
I

himself.

the investor can do to protect

With

□ THE FAVORITE FIFTY—Analysis

of the 50 listed stocks most popu¬
lar

with

professional

ment—relative

'47.

IFor your free copies of this literature
—check

items you

advertisement with

wish—mail this

your

personal

help, Mr. Funston, and the help and good

think

can

Working together

manage¬

values since

your

will of all the members of the New
York Stock

and

our

dustry

objective,

even

Exchange;

,/j

Diversified Investment

can

accomplish

your

Manhattan Bond Fund, Inc.

objective

investors in American

in-

the soundest possible basis.

I Kidder, Peabody
business card.
I

Founded 1865

Members New York Stock

& Co.

CF-6

Putnam Fund Distributors, Inc.
50 State

Exchange

Uptown Office 10E.45thSt.,N.Y. 17

MUrray Hill 2-7190

fund

better job.

too—more

New York

Chicago

available

from

your

i"Chicago
Iqs AitfteUs

Street, Boston

local

these

mutual

investment

funds

dealer,

■■

Hugh w. long and Company
'■

Incorporated

San Francisco

ago.

year

value

$4,537,855

been

INVESTORS'

ago,

share on 659,722 shares then outstanding.
per

thousands of dealers and salesmen we've
carried the story
to every corner of this
country. While other

Professional

both

share¬

Scudder, Stevens & Clark Fund,
reports total net • assets of

common

prevailing

de¬

Inc.

Cor¬

of the

general

appear

with

have

June 10, 1953.

ouarter

same

cents

run¬

of last year and there has been

Inc.

of record at the close of business

porate earnings in the first quar¬
ter of this year were about 10%
above

;

June

holders

re¬

share¬

activity, Hugh
President,
told
stock¬

reflected

of ,13

come

industrial

Bullock,
holders^- "Consumer

Fund,

distribution from net in¬

payable

holders, currently at 63,000 — the
largest number in the company's
history.
Commenting
on v the
current
rate

Stock

mon

Dividend

$113,651,038 at April

creased

Fund

City

Marathon Corporation
Murphy (G. C.) Com¬
Eliminations
i n c lu d e d

40 cents

ning well ahead of last

do need

and

1,000

last

•

Yes,

Pont

2,500

and

increase
oi

Fund's

Amerada

Paso Natural Gas, 1,500 Food
Machinery, 1,000 Johnson & John¬

earnings from
those

over

800

this

the

to existing holdings'
3,000 Aluminium Ltd.,
American Cyanamid, 1,000,,

1,000

(1) normal increase in unit sales,
(2) increased cigarette prices for
the full year and (3) elimination
tobacco companies'

added

included

increased unit sales and prices
be sufficiently great to en¬

increases

purchases

Additions

25-30%

90%

following the first quarter

included

earnings

from

result

Petroleum, 5,000 du
2,000 Firestone Tire.

will

around

stocks

Stocks

the combination

year,

Calvin

quarterly

portfolio

the

continuation

by
a

percentage of assets invested
common

con¬

all

Bullock

market decline.

E.P.T. extension.

combination

made

that the tobacco companies would
be
still better off without any

so,"

characteris¬

94%

prices, more companies
will be subjected to E.P.T. this
year
than last year.
Thus, of
course,
the obvious observation

"Even

p.ace

letter that the Fund had increased
the

cigarette

tinues, "a

taken

defensive

the

common

possessing strong

Fund, Ltd., managed
Bullock, were told in

and
applied
to
substantially
higher operating income as a re¬
sult

have

groups

SHAREHOLDERS

592

NEW YORK
I
mmm mmm mmbiimikii

their

□ INFLATION

Including

chemical and rubber industries.

and should reach very siz¬
proportions.
"It is true, of course, that this
year with a continuation of pres¬

able

tax

holdings

those

growth

tered

ent

Accordingly

increases

tics, particularly the utility, bank,

unal¬

30,-1953, compared with $108,740,on
Oct. 31, 1952.
Continued

•

stockholders.

obligation please send

nea prospectus on

basis

GENTLEMEN: At

companies

selection.

stock
in

year's net earnings.
"Next year the combination of

right

stock

principal

in¬

ers

Rusling, Whitehall Fund is

and prospects suggest a more con¬
servative
approach
to
common

this

country needs thousands and thousands

Calvin bullock

E.P.T.

pace

net

■.

and children who

the

year

Plan Fund manage¬
letter urges that sharehold¬
vote in favor of the proposed

slow

able

The Howe

It has been the management's
opinion,
however,
the
report
stated, that present circumstances

earnings'

creased earnings of the
tobacco
companies,"
Distributors
Group
says, "the uptrend in earnings ot

You're

increased

extension

may

TOTAL

You're

the

cording .to
Distributors
Group,
Inc.,' managers of Tobacco Shares

cor¬

Howe

investment

present
ated

average

well under half

Fund.

90.33%

April 30, 1953.

outlook for tobacco companies, ac¬

poli¬

by experienced

management and at the
in

un¬

factor

ment

its shareholders.

3, PA.

professional

be tax free to Howe Plan Fund

states

realized

investments. He further stated that
the proposed sale of assets and
iistribution of shares are expected
o

Prospectus from

and

manage¬
the pro¬

that

investments

cies administered

responding

holders all taxable net investment

reduce

der conservative investment

The

states

combination

in continuance of

subsequent trans¬

ratio.

letter

addi¬

source

necessary

expense

ment

are

Whitehall

assets

posed

exchange

Shareholders

regarded

tional
the

Fund,

issue

Fund

)f assets and the

fer

Eitoblished 1930
•

Plan

being asked,
it a special
meeting to be held on
une 23, 1953, to
approve this sale

RESEARCH CORPORATION
Broadway

Howe

lowe Plan Fund

NATIONAL SECURITIES &

120

Howe

:or

mVWAh INVESTMENT FORD

Rusling stated that Whitehall

Fund
o

Howe

Inc. with Whitehall
both mutual funds,
announced by Lee J. Rusling,

President
vtr.

combine

Fund,
Inc.,

Fund,

national:

stock

common

prices to increase the proportions

with Bache & Co., Dixie Terminal
WITH

has taken

ment

Westminster

Parker, Elizabeth

~Neu> Jersey

dis-

Volume 177

Number 5226

(2435)

The Commercial and Financial Chronicle

...

tribution

April 30,1953, having

the effect of

two-for-one share

split-up.

Midwest Slock Exch.

during the period and adjustments
in

made

were

TOTAL NET ASSETS of Investors

Stock

I. D. S. to the fund's management
the

elec¬

fund's

Inc.,

mutual

fund

of $48,045,946 on April 30,
compared with $41,543,427 on

assets
as

.Oct. 31, end of its fiscal year.^
The

per

value

of .^out¬

dustrial Fund,
Inc., Charles/F*
Smith, President of the Fund has

cents

2,557,927 to 2,896,468 in

months

and

shareholder
from

total

six

number

increased

accounts

16,000 to 18,000.

,v>

partner

ard, partner' of Prescott & Co.,
Cleveland, was elected Vice-Chair¬
of
the
Board,
succeeding
In announcing the dividend, Mr.1 man
Merrill M. Cohen of J. M. Dain &
Smith disclosed that the assets of

Inc.- Co., Minneapolis.
members
have increased approximately $3V2 r New
Industrial" Fund,

Financial-

fund's

April

97%

30,

investments

were

Board

the

com¬

•

1935.

SELECTIVE

DUDLEY

Board

of Directors

Investors

declared

has

Selective Fund

June

holders of record

■'V»

quar¬

per

terly dividend of ten cents

payable

19, 1953 to share¬
of May 29, 1953.

H. K. Bradford, President

•:

SELECTIVE FUND, INC,
-

Kalman

FUND, Inc.

Notice of 30th Consecutive Dividend.

The

Cleveland; Paul R. Doelz,
& Co., Inc., St. Paul and
Albert
M.
Schmelzle,
Fusz-

Co.,
PROGRESS

PERSONAL

Minneapolis, Minnesota

Texas

election of William A,
Wareing as Vice-President of the
the

day

jgSeaaaee

■■aaae

l.aaaa
hiaaaa

Mainibeimer-Egan Inc.

"••"/"

with total
assets over $12 million, is one of
the nation's fastest growing mu¬
tual funds and offers the public
70

Rodman & Linn
CHICAGO,

southwestern

leading

companies.

R. A. Smith Joins

of investments,

cross-section

over

staff.

Inc.,

Fund,

has

'•

INVESTORS

MASSACHUSETTS

% Stock

Fund

the

announces
election of William B. Moses,

Jr.

its

director

and

^investment

committee.

with

Massachusetts

20c

Trustee

share from net investment

of record June 11,
prt,

WALTER L. MCRCAN, President

1941.

became

during

re¬

in investment research

petroleum, natural
companies. \
V

Philadelphia 3, Pa.

and

gas

metal

dent

Lamson

•„

Joins Beil &
ST.

added

McKee,

Hough,

the

North

members

the

Fourth
Midwest

has

Boston

LOUIS A.

Fund

elected

been

Stock

GALLINARI, previous¬

With R. S. Dickson Co.
Chronicle)

Two With Merrill
(Special

Lynch

to The Financial Chronicle)

ATLANTA, Ga.—Carl A. Crow¬

to Thet Financial Chronicle)

(Special

HARTFORD,
prospectus
from your

Distributors

request

investment dealer

Group, Incorporated

become

has

Wheeler

Conn.—Frank

ley and Phillips C. McDuffie, Jr.
are
now
with
Merrill
Lynch,

Pearl

York 5, N. Y.

was

Hammill

Tifft Brothers*#

Street.
&

Co.

Mr.
with

and

the price level down.

stock may help force

offer the same defensive qualities as
/'
/ , '
The problem is, therefore, to attempt to select electric utility
stocks which combine the best current value, the brightest longterm prospects, and the smallest risk. In making such an analysis,
Mr. Leason suggests consideration should be given to the (1) theo¬
retical "standard" dividend rate corresponding to earnings and
financial strength rather than to the actual payment; (2) adjust¬
ment of earnings to a normal 6% return on investment; and (3)
growth potential based on planned increases in generating capacity.
A sliding scale of suggested dividend payments based on the
strength of the common stock equity ratio is set up, which may be
cantly in price and do not
utility group.

the

summarized

follows:
Suggested "Standard"

Common Stock

Dividend Payout

Equity

50%

20%

571/2

With Slayton & Co.
(Special

721/2

80
85

50
55

100

A table of

leading electric

the difference between

showing

utility stocks is presented

current dividend rates

and the "standard"

stock equity. (It is interesting to
Gas & Electric increased its
April 29, whereas Mr. Leafeon
brochure suggested $1.62.)
table is then developed on the assumption that the

that, coincidentally, American
dividend rate from $1.50 to $1.64 on
in his May 1
A second

rate of return on

usual

The

Financial

Chronicle)

NATCHITOCHES, La.—Harold
W.
Dowden
is
connected
with
Slayton &

Co., Inc. of St. Louis.

capital and surplus

should be at least 6% (the

in gen¬
companies during the period 1952-55
summary and conclusion, two tables are pre¬
Finally, the projected increase

regulatory standard).

erating capacity for leading
is tabulated.

sented,

one

In the

for the companies

which are theoretically paying more

than they

should, and another for those

dividend.

A summary and

which could increase their

opinion for each of the 55

companies is

also given.
The

development of this "formula"

approach to analyzing and

interesting and helpful, but of course does
all the numerous factors which should enter

rating utility stocks is
not take into

into

account

scientific appraisal.

Joins Bingham,

With First California
(Special

affiliated

formerly

Wheeler

Shearson,

63 Wall Street, New

Pierce, Fenner & Beane, 23 Pryor
R. Street, N. E.

with Charles E. Thenebe & Asso¬

ciates,

supplies and labor are rising

However, utility common stocks are not necessarily alone in
this situation. Many industrial groups have also advanced signifi¬

PETERSBURG,

Joins Charles Thenebe

cost of fuel,

smaller percentage of revenues is being carried through
the common stock. Finally, the frequent sales of large amounts of
and that

payments corresponding to the

ATLANTA, Ga.—Jot O. Sayer,
Jr. is with R. S. Dickson & Co.,
since 1951
director. Inc., Grant Building.

ly Assistant Treasurer and Clerk,
has been elected Treasurer;

depreciation, maintenance, tax and interest charges—which may
no longer be offset by revenues.
This would particularly be the
case with lower industrial operations.
;
V"
'

Street,

EDWARD F. RYAN, a Vice-Pres¬

through

obtaining rate increases.
Utilities would also be hurt by a further increase in the corporate
income tax, and only a few of them would benefit from elemination of the Excess Profits Tax. Another adverse factor is that the
new plants now being constructed will
restore the normal 15 or
20% of reserve capacity, while the idle capacity will still carry

(Special to The Financial Chronicle)

ST.

for con¬

there is usually a lag in

higher rates,

Exchange.

Allan

Henry Guild.

ident

might eventually be reimbursed

stocks, and while this

has been
Beil &

Jr.

(Special to The Financial

Group Securities, inc.

common

Hough

staff

■

higher current cost of obtaining new utility funds
struction may tend to reduce future earnings available for
The

PETERSBURG, Fla.—Clar¬
W.

ence

National

Adams,

1 .o'■

.,■

stocks with low yields are vul¬
nerable marketwise. In 194-3 the Dow Jones utility average declined
from 43.74 to a low of 33.20 but since then has advanced substantially (has recently been around 51). A substantial downturn in
prices might, therefore, result from any "revaluation" of yields in
the market.
YV. "■*'■■■
Y,-"v/

note

Forbes, G. Peabody Gardner and

•,;.>:

He feels that utility common

(Special to The Financial Chronicle)

CHAPMAN, Presi¬

Francis

Charles

prospects."

Co.

Bros.

Merchants

the

than any other common

associated

formerly

was

Fla.—Paul
Bank
of
Boston, has been ap¬
G. Anderson has joined the staff
pointed a member of the advisory
of
Goodbody & Co., 218 Beach
committee of Boston Fund. Other
Drive, North. :
members of this committee are

THE COMMON

STOCK FUND

points out that "the

Leason

or more

Linn, 209 South La Salle

With Goodbody & Co.
RICHARD

utility group, probably as
stock category, sells largely
on a defensive money yield basis.
Of course, this somewhat over¬
simplifies the appeal of utility stocks, which have attraction for
their relative stability of demand, persistent growth, sound cost
structure, and monopoly situation as well. However, in the absence
of competitive and price factors faced by industrial concerns, and
considering the larger number of closely comparable equities, utili¬
ties do tend to sell together on a yield basis moderated by propor¬
tion of earnings paid in dividends, capitalization ratios and growth

much

Investors

concentrated

cent years

•

with

associated

the beginning of 1953.

has

30 to stock

1953

since

has

Smith

price decline.

management

been

Trust

member

Smith

graduated from

Yale

income, payable June

1935

recent

Street, members of the New York
and Midwest Stock Exchange. Mr.

Mr. Moses who

Quarterly Dividend

111.—Roy

associated with Rod¬

become

man

Growth

utility

common

further reducing the yield advantage which
stocks have enjoyed—unless they also extend their

common

Adds Two to Staff

in corporate bonds and in pre¬

sharp decline in governments,

He also contends that

& Company of Houston,
Texas, the Fund underwriter. Mr.
i, ST. PAUL, Minn.—MannheimerWareing was formerly Vice-Presi¬
dent of Bradschamp & Company Egan, Inc., First National Bank
and in his new capacity replaces Building, continuing a program of
Victor Dykes who recently re¬ expansion in the sales department,
have added William F. O'Connell
signed to accept the presidency of
and Richard P. Egan to the sales
the
Texas International Sulphur

94th Consecutive

Co., St. Louis.

Brads-

champ

Texas

yiaeeeeaee

President

and

Fund

Schmelzle

ferred stocks,

announced to¬

Inc.,

Company.

-.■■■■■■■■■■a

President

SHARP,

Fund,

New York 5,

Mr.

elected were:

the million in the past 12 months. Net
assets on May 29, 1952 were $10,- i
From ' Chicago:
Lyman
Barr,
mon stocks.
Nearly 16% of Stock 830,349, as compared to $14,400,-; Paul H. Davis & Co. (reelected);
002 at May 29, 1953.
During the Irving E. Meyerhoff, Freehling,
Fund's holdings were in utilities,
13.44% in petroleum and 12.78% past year shares outstanding in¬ Meyerhoff & Co.; Harry A. Baum,
creased from 4,250,-335 to 5,681,268 Wayne
in
chemicals > shares,- the report;
Ilqmjner & Co.
showed.:.;•
Y...»v-',, •••>:< .? a gain of 33%. During the same
From
Cleveland: Herman J.
period Financial Industrial Fund,
Sheedy, McDonald & Company.
;
I.D.S., the
fund's investment
Inc.
has paid to shareholders a
From St. Paul: Fred S. Goth,
manager,
"treated a period
of
total of $552,628 in dividends and
comparative weakness in petro¬
Irving J. Rice & Co.
$322,410 in security profits.
;
;
leum stocks as a buying oppor¬
; From St. Louis: Hunter BreckShareholders reside in 41 states,
tunity," increasing its holdings of
enridge, McCourtney-Breckenoil stocks during the six months, the District of Columbia, Alaska,
Hawaii and several foreign coun¬ ridge & Co.
the report noted.
:
The
following were elected
tries.
Financial Industrial Fund
More substantial investemnts in
members of the 1953 Nominating
dollars
are
diversified
over
71
chemicals were recommended by
Committee:
Frank E.
Rogers,
companies operating in 18 major
classes of industry Mr. Smith said, Chairman, Chicago; Clyde H. Bidgood, Chicago; Fred W. Fairman,
Financial Industrial Fund, Inc.,
Jr., Sills, Fairman & Harris, Inc.,
a
diversified, open-end "managed
Chicago; William F. Rowley,
Investment Fund,;-is distributed
Daniel F. Rice & Co., Chicago;
nationally by Investment Service Fred D.
Sadler, Chicago; Theo¬
Corp. The Fund was founded in
dore Thoburn, Hayden, Miller &

Stocks

Scott & Co., 120 Broadway,

high-grade utility equities declined from around 5%% to 4%-5% a
short time ago, so that the yield advantage in buying common
stocks was drastically reduced. Recently, however, there has been

P.- Hargrave,

Yield Patterns in Utility Common
J. Walter Leason of Montgomery,

succeed

will

June

Homer

share from net invest¬

per

By OWEN ELY

has prepared a 25-page "Co-ordinated Study of Lead¬
ing Electric Power and Light Company Common Stocks." He points
out first that while yields on Treasury bonds and utility preferred
stocks remained relatively low in the postwar period, yields on

held

The dividend of three

announced.

Merrill, Lynch, Pierce, Fenner &
Beane, who has served as Chair¬
man for six years, Lloyd O. Birch-

standing capital stock in the fund ment income will be paid to all
was
$16,58 on April 30.. Number- shareholders of record on May 29,
■
•
of shares . 'outstanding
increased .1953.;
from

Utility Securities

companies which depend for earn¬

CHICAGO, 111.—Reuben Thor¬
ings primarily,, upon electronics
sponsored and managed by In¬ products.
son, resident managing partner of
r
vestors Diversified Services, Inc.,
Paine, Webber, Jackson & Curtis,
increased
$6,502,519 during
the PAYMENT of the 70th consecu¬ Chicago, was elected to serve as
six months ending April 30, the tive quarterly dividend of $170,438 Chairman
of the Board of the
fund's
semi-annual
report : re¬ will be made on June 15; 1953 Midwest Stock Exchange at the
vealed today.
The fund had net to shareholders of Financial In¬ annual election of the Exchange
Fund,

Public

Elects Thorson Chm.

tronics holdings to concentrate on

The

BEVERLY
David L.-Elks

Financial

LOS

HILLS, Calif.—

Incorporated,

Monica Boulevard.

9659

The

Walter

Financial

ANGELES,

Chronicle)

Calif—Henr^

Bingham,
62 South
Santa Spring Street, members of the
Los Angeles Stock Exchange.

to
California Com¬

has been added

the staff of First
pany,

(Special

Chronicle)
C.

Harms

Walter

is now with
Hurry, Inc.,

(2436)

The Commercial and Financial
Chronicle... Thursday, June 4,

Continued

from

levels without ever coming to a complete as
possible a picture of
head, and the drafting of the Eco¬ the functioning of the
economy,
nomic
Report often provides a I am
not
referring simply
to
device of forcing the issue to a routine
data collection, which is

page

Structure and

Functioning of

decision.
In

Council of Economic Advisees

reasonably
has

has been

•economics, however, it is obvious¬

strong tendency for the

Council
able to ask questions of the draft¬

this is the way the
operated. But there

part,

Council

concentrate

semiannual

the

and

reports,

ly silly to have the President pos- ers of that report to clarify am¬ more-or-less ignored during the
fcng as a trained economist when biguous points, and to make ex¬ remainder of the year. I need
everyone knows he is not.
Fur¬ plicit assumptions, or lines of cite only one instance. In early
thermore, there will always be the
some people's minds that
the reports are not the product of
«traight-forward economic analy¬
sis, but rather are the work of the
belief in

aids.

This

terials than the authors thereof?

the

was

defense of materials submitted to
to

his politi¬
charge
«nade by Senator Taft in 1948.
by the President

**p

argument which may 1951, the President
appointed a
implicit in the written committee to explore means of
report.
The Congress is entitled reconciling
monetary and bond
to this kind of interpretation and
support policies.
The Chairman

Furthermore,
no

.J?roblem

Political

been

it, and who is in a better position
interpret and defend those ma¬

Council after it has been doctored

cal

reasoning

have

means

"Doctoring" There

Of Reports

field

abundant

room

economics

for

the

difference

Actually, this problem of "doc¬ of opinion between honest, rea¬
toring" for political reasons arises sonable and informed men. It is
whether the
cil's

results

economic

sented
or

that

over

simple

that

the

analyses

their

over

of the

are

President.

Council,

the

its

own

particular points at issue,

members of

not

life

political

see

the

rass

fer
violently from the general
policies of the President.
Minor

President

differences,

each

There

considerations

other

should

not

embar¬
the

personally for the

other

with

minor

tively

him

mem¬

points

rela¬

major
nomic which the President must program.
And,
as
I remarked
take into account in formulating earlier, if a member of the Coun¬
•economic policy. But if a Council cil is fundamentally at odds with
of Economic Advisers is in funda¬ the policies of the Administration,
mental

disagreement

eco¬

with

the

should

withdraw

and

express

philosophy and policies of the his opposing views from the
Administration, and cannot in a side.
treasonable

President

time
and

to change their

get

The

out.

the

persuade

his

other

appearances

the

before

Council

presidency, if it is to be an effi¬ committees
ciently functioning
mechanism, ited.
Such
must

team, not
quarreling soloists.
On

balance, it

seems

group

the

have

members

congressional

been

fairly lim¬
discussions as

joint

have taken place

have been

very

constructive, both to the Council
that and to the Congress. Under the

the results of the Council's studies
should be made public

the

was

that

com¬

But before that committee

report, and in order, I be¬
to thwart any invasion by

Council

into

the

fairs"

"private af¬
and Federal

of
Treasury
Reserve, these two agencies met
quickly and privately, and reach¬
ed

and

announced

known

"accord."

their

The

well-

committee

subsequently rendered what might
be called an "ex post facto" report.
Whether

this

semi-isolation

the Council has been the fault of
the

Council

others

fact

It is

to determine.

easy

simple

bureaucratic

life

not

that

any

♦President, and for confidential
ports,

perhaps supplemented
published reports

occasional

the conclusions
-of

of special
technical character.

by
on

studies
'

ctaff arms of the President. It is a
ipart of the presidency. It does not
report to the Congress. This raises
the question as to the
appropriate¬
ness of members
of the Council
appearing before committees of

Congress, submitting them¬
questioning, and defend¬

selves to

ing

the

tions

economic

recommenda¬
Council or of the

the

There

President.
The issue here
So

lishes,

over

long
its

results of its

should

self to

own

signatures, the
economic studies, it

required to submit it¬

questioning, and to defend

conclusions.

fcogic

to be quite
the Council pub¬

seems

in ,the

fail

Council

see

stating

the

its

views in signed, published
reports,
making speeches
freely before
various groups, and, so to

two

aspects of rela¬

of
is

(e.g.

powers

fense

Government, even
given extraordinary
the

Office

De¬

Mobilization). Whatever the
the

reasons,

Council

has

fallen

considerably short of the
role
which I, for one, would assign to
it in this respect.
be

the

situation

summarized

can

best

identifying
three levels
of
economic
policy
making. First, is setting the gen¬
eral

tone—the

broadest

policy formulation.

kind

At this gran¬

diose
an

level, the Council has played
important role. Second is the

specific policy level—concrete but
major problems of policy. Here

H—the

much

concern

Congress.

On the other
to the President
the basis of

band, if its advice
is done

would

anonymity,

appropriate for that
anonymity to be absolute; that it,

#or

the

Council

refrain

from

discussing publicly, in any
Che results of its
thinking.

economic

ties

are

The

the

research

activi-

programs, with little or
consultation with the
Council,
frequently duplicate research
activities in other agencies or in
no

and

the Council

itself,

the

was

case

in the recent
Department of Commerce

study

markets

after

defense.
The reasons for this

several,

are

policy formulation. The
the

concerns

economic

various

research

agencies

character
done

the

Govern¬

ment.

Economic policy is developed in
all

agencies, and at all levels of
Government, but it is the function

the

Council

coordinate

this

policy formulation, to reconcile so
far as possible
conflicting views
before they reach the Presidential
level.
And there are conflicting

views.

specific

by statute

has

been

never

The

almost

biased

in their viewpoints as the eco¬
nomic groups they represent. And
even the
regulatory

agencies, such

the

serve,
their

ICC

the

have been

charges

Federal

known

unto

their

Re¬

take

bosoms

and become their defenders in the

councils

government.

The Council of Economic Ad¬

visers,

economic

the agency charged with

policy

coordination,

should be in daily communication
with economists and
agency heads
in all parts of the

Government. It
should be familiar with economic
policy issues in their earlier de¬

Economic
cil's

Report and the Coun¬
Economic Review should be

not

Economic

Ad¬

originator of
economic data; it depends
entirely
ment

sometimes

Originator of

Council

visers

upon

groups

Government

coordination—of

Economic Data

so-called

pressure

is,

Council Not

The Departments of Labor,
Commerce and Agriculture—the
mirror

<other

that

for

other
and

its

agencies

Govern¬

private

upon

economic

sources

information.

the

statutory requirement
that
"appraise the various

the Council

and

programs

purpose

tributing
the

activities

Government

below

the

(they)

the

depend
other agencies and
non-Government sources for basic
upon

and

a n c e
.,

de-

material,- and., to

substitute
brief, ; highly; oversimplified^'trea tment, which
though perhaps mot intelligible to
r

instead^ar^

brevity.;. Probably

the

only

the

The;, second purpose, that of
establishing goals for the econ-

the

omy, is a vital one.

ex-

ment

the
are

addressed.

are

the

con-

achievement
Act.

subcabinet

department

of"

More-

Act

depression

not

The Employ-

simply

Act.

President's

anti-

quote

the

"Economic

recent

Report";

<■

level

"The Act is not meant simply
lor salvage operations; it does
't

not set up a

standby mechanism
brought onto the scene
only on those extreme occasions
when the economy needs to be

(i.e.,

undersecretaries

the Director of the Bureau of the

Budget).
low

This

for

notch

one

this implied

too

dredged out of

authority to

bolizes

hole.

It sym¬

the

marshaling of the
private and public pol¬
support of a full and

very real.
Furthermore, even
if it had such status and
explicit

forces of

authority,
there is always the
problem of the inevitable jockey¬

growing economy.!-.:'

ing between agencies of the
ernment,

which

willing

agency

outranks

admit

Whatever

field

the

Gov¬

agency

that

other

any

it.

this

reason,

activity which could

greatly expanded.

icy

The

Council has regularly set
goals for economic growth,
Some* persons have had./the im-.
pression that these goals are- just

forth

fancifuLfigures; picked out;of the
blue sair,; and completely unreal-,
isMe.V«-Eor

this-; -reason, f: in i the
last ,repor.t,- we tried to spelpout,

The Functions of the Council

at,

The

able as?Hmptions as, tp population
^rovvthj- rate of participation, in
leyek,:oi,-upemploym^tj ^hours .-pf^ work, pro*";

the

facts

but

tion

not

only

also careful
those

economic

goals

which

facts;

interpretasecond,; to

reasonable

are

some

length, and showing: most

that they. were/based?

and

on reason-

*;>

»*.I

tJJusthpw far the Council should

nevertheless challenge us to make

go^fm calculating

efforts

matter*, of, argument*

such goals is a
So far, the
need; third—and this is a respon- Council has* not gone beyond the
sibility which I believe the Coun- most; general >sort of goal—total
cil
cannot
escape—to
forecast GNP,,. total employment, etc.
It
future
economic
tendencies.
I is my feeling that is should go
commensurate

with

the

hasten to add that by
forecasting
I do not mean simply the
prediction
of
the
inevitable
conseof

quenees
iiomic

unchangeable
I

processes.

mean

jection of the probable
events if

are

taken,

individuals,

conclusions

for

pro-

balance** which would! be condueiVe- fo stable-economic growth,

certain

fan Investment

consumption

policy

not

taken,

It^il^also^fhy-*' feeling,; -however;*
that it should not go to the point
by pri- of • setting'*industry by - industry

together

eco-

course

the Government and

further; as did the National Planning- Association in their recent
sthdy^ and at least establish goals

the

best

with

goals, as is done in; Britain.1'That

com-

is Tod-detailed- a' type of economic

bination

qf private and public
policies to achieve the objectives

planning for

flexible- an-econ-

omy as-' Oiurs;"-1"^

previously set forth. And fourth,:
"■;1
it
is
the
responsibility of the •
'Future,...<•.* i
Yet the Council
is
the only Council, by logical argument, to
it .Third^-.the
:Council -has' - the
agency of the Government con¬ persuade
decision-making
indi- obligation ; to ; project 1 into
the
cerned with the
viduals, within the Government futhfe^not simply on the basis'of
totality of eco¬

economic

research.

nomic activity.

The Employment .and out, to make those decisions
which
will
contribute most
to
achievement of these objectives,

Act,

except
for
the
widely
embracive
stipulation
that
the
Council

concern

ployment,

itself

with

em¬

production,

and pur¬
chasing power, gave the Council
a
completely free hand as to
scope

its

investigations

recommendations.
dent's,

general-

with
emphasis
"general."

and

It is the Presi¬

economic

staff,

the

word

'
-

It would be
entirely appropriate
for the Council to
coordinate re¬
search

activities

the

various

agencies of Government.,It should

With

respect to the first pur*that of providing economic
information, I have little to say.
The data presented in the reports,
pose,

particularly

and

monthly

the

appendices,
"Economic

Indicators," have been organized
in a way that makes them useful
to

the

great many people. Whether
interpretations of these eco-

nomic

facts

and reliable

have

been

adequate

matter of opin-

hunches,

or intuition, button
the
basis pf reasonedeeonomic analysis'aricl.facts which are explicitly.

In fact, I behevq that
sistutory obligation. The
Ach^.rfequires.-4he. -Council^ - .or
rathf r fhe President on the advice
°l Jbe Council; to set forth , current and foreseeable trends, in,
the*: levels' of employment, proa

^^onf and purchasing power.'?
fTheCjecent "Annual Economic
Review", is the first one in which
the

Council

has

attempted

make.f quantitative projections-—
i.e.fforecasts—of demand in the

ion., Perhaps the greatest shortdeveloped out of this entire proc¬ endeavor to eliminate
duplication coming is the* fact that, in trying major sectors of the economy, at
ess of
policy formulation. I should of research
activity, and more to write their materials appro- least.,beyond the immediate,
absolutely
clear add,
however, that it is often true important, to encourage economic
document.
It-is helpful to the
priate both the non-economists— short -: run ^ future. ;■» The * rather
that economic
policy issues may research activities which,; .when members
members of the
of the Congress and to
Congress to be be debated
timi^'sfcep ?in the 1950. "Annual
interminably at lower added, y together,
will
give
as the public generally—and -to
pro- . Etonomic;Reyiew" might be COnhow

fully

written,
complete
and

can

never

care¬

•

^.arithmetic,* just^howji the
Sools werodeyeloped and showing

functions ! of

vate

largely

this

determining

policies

not

under¬

price,-, income-relations.

for

simply as a matter of status
■in which salary is the
accepted
criterion—the Council is one step

economic

tion■>, investment

cided at the last minute to delete

over,

actions

facilities

three-page discussion .of the re lationship between the consump-

such
economic
reones> and to divide them into two
activities, although such rather clean: categories depending
authority might be inferred from uP°n the audience to whom they

the Council is a
small agency, and is required
by statute to remain small. It does
the

helpful
example,

Economic

coordinate

very

have

Annual

Furthermore,

take any very extensive economic
research projects. It must

last

authority, either solution-;;toVthis problem is to
order, to Prepare more reports, but briefer

capable of achievement, but which

with

executive

establish goals for the
economy—

research activities.

in wthe1

the layman; :at least had the merit

given

Council

favorable with respect to the other
aspect of the relationship of the

agencies,

find
For.

the

toto, the effect has been minor.
My conclusions are even less

Council

would

that

formation,

some

here, where they en¬
good,
informal ; relations
with the agencies
concerned, but

economists"

and''informative.

They arise, initially, from the fact

day-to-day policy problems of a
quasi-operational character.
The

non-economists;
on
the
hand, the Council felt con¬
pelled to omit much of the logical
development and theoretical
reasoning
which
professional

many
other

largely uncoordinated. Review, the draft up through the
develop their own galley proof stage had about a

research

among

area

economists, the Council

have:missed both audiences.
That is, the reports contain just
enough economic jargon to 'repel

may

agencies

joyed

velopmental stages. It should par¬
ticipate in discussions of these
;
There are some real advan¬
policy issues at lower echelons
tages in having members of the and
attempt to resolve them be¬
Council appear before
congres¬ fore they reach
higher levels. The
committees and others to
defend their conclusions. An
eco«omic report, no matter

agree

true,

staff of the Council has done

way,

sional

not

Third

data

good work

ess.

ment

hierarchy
it

collection of data not ordinarily available). Such Govern-

tent to which

when

economic

require,

the

other agencies of the Government.
The first concerns the process of

Although the process, of eco¬
nomic policy formulation has a
speak,
seasonal pattern, set by the timing
ialking with everyone^ else, yet
of Congressional sessions and the
refraining from talking with the
fiscal year, it is a continuous proc¬
loeople who make the final policy
decisions which

may

in-

tionships between the Council and.

—are

clear.

are

by
re-

Council,
vis-a-vis the public generally, are:
first,. to
provide
economic
in-

second

relationship of the Council

to the Congress
presents, of course,
an
entirely different set of prob¬
lems. The Council is one of the

the

economic

The Council and Congress
The

•

to
terpretation

Federal

themselves.

Government Agencies

re¬

ferring

(which

coordinated

Budget. I am
the analysis and

the

agency finds it extremely dif¬
ficult to "muscle into" the power

could

Relationships With Other

relationship with the

well

new

present set-up, much more such the Council has largely been a
especially testimony before congressional failure,
partly
because of
the
it it is a three-man Council.
If committees should
probably have problem of muscling in, and part¬
ihere is to be a one-man
Council, been undertaken.
ly because at times the Council
there might be more reasons for a
members
confidential

•

Council

Perhaps

ceived

position, it should
institution

out¬

Actually, because this issue re¬
so
much public attention,

advisers

could

may

bers of the Council to differ with

are many

than

Council

Administration

jports, cannot and should not dif¬

yes.

the

to eye with each other,
entirely agree with the

eye

may not

President.

re-

to conceal the fact

necessary

that,

pre¬

signature,

own

the

fact

not

Coun¬

the

mittee.

lieve,

economics is by
exact
discipline.

Bureau

fessional

1953

Number 5226

Volume 177

But

Council
quantification
the

report,
from

draft

successive

until, at the end, it was impossible
add the figures together into

the

true,

ployment, price stability, or a
projection of total GNP.
♦.?
more equitable distribution of the
In brief, it is the responsibility
economic product. But the Coun¬
of
the
Council,
following- the
cil is charged by law to do just
leadership,
incidentally, of r the
Joint Committee on the Economic that, be it possible or impossible.
This gap between the Council
Report, to project into the future
and the economics profession is a
the way in which economic forces
difficult one to bridge, and re¬
are likely to work out, the ways
lies fully as much
in which changes in public and sponsibility
with the professional economists
private policies — or absence of
in the academic world as it does
changes—are likely to affect the
with the political economists in
working out of these economic
a

and

forces,

tions

possible

much

vagueness

quantifying, them, to

permitted by
Only, by so do¬

the maximum extent
the facts at hand.

ing

ter

jawbone

engage

the

economics

the

suggestions

giving

1.0%

eco¬

held
in very high repute. Yet the Coun¬
cil through its published reports,

jawbone price control, is not

pointing
cil

which

mists

recognized by their as¬ other words,

are

sociates

being

professionally

Part of the explanation may lie
in the lack of necessary funds. The
the President's reports,
Council has not been in a finan¬
through its meetings with ad¬
visory
committees
representing
business, labor, consumers, and Continued
from page 5
other groups, and through other

through

public utterances, has done a great
think¬

14,765 trucks built in the United States, against 132,157 cars
and 19,452 trucks in the previous week and 76,256 cars and 21,858
trucks in the comparable 1952 week.
Canadian factories built 8,628 cars and 3,070 trucks last week,

performance has probably
been least in the fields of private

2,935 trucks and in the comparable 1952
trucks were assembled in the Dominion.

one of the main cen¬
politico-economic thought

Business

country.

this

Commercial

porations

sophisticated

and

thinking,

economic

The public statements

tributed.

Council

the

con¬

strumental

also

have

been

developing

in¬

policies of the last few years
would not have been possible. But
most

Council has
leading role in overcom¬
the

important,

played a
ing
the
mature-economy,
eco¬
nomic stagnation thesis of the late
1930's and substituting for it the
concept of a

that

businessmen

are

accordingly.

„

the

senting

Association,
omists

the
to

repre¬

brought

been
on

consultant basis

True,

advise it in its thinking.

the

Council, directly or through
its staff, has attempted to keep
fully informed of the published
writings of economists, but clear
thinking in the field of economics

than reading the
literature.
It
requires frequent
personal contact, the give-andtake
of
argument with leading
requires

thinkers

the

The.reasons

fields of

various

economics.

for

this

•

**..:

develop¬

not easy to identify.
may lie partly in the in¬
stinctive distrust, in the mind of
the economist charged with posi-

ment
They

are

»tive. politico-economic -policy .for¬

mulation,
-

world

the;, unreal,,-.other-

attitude of. many academic

economists..

Politics

have nbeen

of 1953 revealed

general use and its chief function is to show the gen¬
prices at the wholesale level.

Wholesale Commodity Price

automakers' views are estimates from

before, and 296.65 on the like date a year ago.

wheat
as

Continued

other

shrink in the last half of the year
,

Those latter estimates

they estimate steel ingot production for
from 105 million to 110 million net tons, with

this year will range
58 million tons in the first half.

tions

same

industry officials are

with 45,200,000 in the

week last year.

The

steel, the auto industry holds
very important key as to how long steel demand will be high.
Steel mills are aware that balance between demand and supply—
even a steel surplus—could come pretty fast if big users like auto
and appliance companies should start trimming their orders, states
Being the biggest consumer of

journal.

Corn, oats and rye were also under heavy

steady

decline

in wheat prices failed to stimulate any

interest in the domestic flour market.

this trade

reducing operations.

37,400,000 the previous week, and compared

noted for conservatism in
outlook, some observers are inclined to discount the predic¬
of drop in demand this year "Steel" declares.

their

dis¬

liquidating pressure and reached new low prices for the season
in sympathy with the break in soybeans. Daily average purchases
of grain and soybean futures on the Chicago Board of Trade
totalled 36,700,000 bushels last week. This was down slightly from

believing steel demand will
are officials of the steel produc-

ing companies. Roughly,

Because steel

favorable weather and crop news tended to

buying while current large stocks of wheat and the prob¬
lem of storage space for new crop wheat also were depressing
factors.
The entire list was subjected to further pressure toward
the close of the week by a sharp break in soybeans, influenced by
rumors that some
soybean processing plants were closing down

those

among

markets

sharp

courage

numerous

the

grain

registering

in Texas.

steel, it adds.
Most

continued to be unsettled with all
losses for the week. The demand for
remained slow and prices dropped to the lowest since 1950
first cars of new crop wheat began to arrive at terminals

Leading

grains

magazine, that demand for steel will

three months of this year.

Index Lower Following/

Sharp Declines in Grains
The general commodity price level moved downward last
week largely reflecting further sharp declines in grains. The daily ;
wholesale commodity price index, compiled by Dun & Bradstreet,
Inc., closed at 277.35 on May 26, comparing with 279.15 a week

Some people think the decline will be just sufficient to put
demand and supply into balance, while others believe the drop
will be substantial enough to result in reduced production of

of the

American Economic
Relatively few econ-*

have

Council

when*it

represents the sum total of the price per pound of

eral trend of food

vary;

been unable to

the

the first four months

quarters, states this trade
drop off in the last

national

drop of 9.6% from the like week two years ago

31 foods in

number one consumer

In contrast to the

professional economists in the
country. Because of the accident
of timing of the "Annual Economic
Review," the members and staff of

committee

The index

reports.

professional associations,
except perhaps for very brief ap¬
pearances.
There is no advisory

flected

Scheduled at 100.3% This Week
of steel—the automobile
industry—is taking precautions against a shortage of the forms of
steel it uses by lining up conversion steel for fourth-quarter de¬
livery, "Steel," the weekly magazine of metalworking, currently

■
of relation¬

attend the annual meetings

was

price index for May 2®

unchanged at last week's seven-month peak" of $6.47. This
a rise of 0.3%
over the year-ago number of $6.45, but it re¬

stood at $7.16.

Steel Output

ingly large extent, the Council has
.isolated itself from the main body

Council have

frdm

period.

The nation's

ships, relationships with the eco¬
nomics profession have been the
least satisfactory.
To a distress¬

the

held

aggregate of 36,577 new

cumulative

growth in the American economy,
and are planning their investment
Of these five areas

succumbed

At 7-Month Peak
The Dun & Bradstreet wholesale food

business organizations. This was the
highest for any similar period since 1948 and represented a gain
of 15.5% over the 31,681 for the first four months of 1952.
De¬
clines from a year ago were shown in only four states for the

becoming increasingly convinced
of the
inevitability of long-run

programs

to 138 from 123 last week

Wholesale Food Price Index Holds Unchanged

level of the

Corporate activity in
an

There

evidences

rose

recorded in April last year.

dynamic, expanding
are
very
real

economy.

April new business incorporations were down slightly
March
number but for the 15th consecutive month

mained above the

which

considerably higher than a year ago when 95

pared with 11 last week.

re¬
corresponding month of the previout year. Stock corporations chartered during April totaled 9,507,
Dun & Bradstreet, Inc., reports. This was 1.6% less than the March
figure at 9,659, but it was an increase of 14.8% above the 8,284
the

the

which

declined.for
Department

public
opinion without
relatively sound fiscal

formed

were

Agriculture.

in¬

to 168 in the week

this size group.

Shipments were valued at $250.6 million, or 33%
below the $373 million of March, 1952.
The Department predicted
agricultural exports during the fiscal year ending June 30 would
decline to about $2.9 billion, compared with about $4 billion in
fiscal 1952.
•
/ Cw
" :'7 ;^.7

which the

studies of the Council have

products exported in March
month, states the United States

United States farm

rose

Among small casualties, those with liabilities
under $5,000, there was a dip to 30 from 33 in the previous week
and a marked decline from 41 in the similar week of last year*
Fourteen failures involved liabilities of $100,000 or more, com¬

and single-payment loans, rose
million to reach $6.5 billion, an increase of $302 million from

the ninth consecutive
*

industrial failures

liabilities of $5,000 or more,

April, 1952.

labor unions and in the larger cor¬

Failures Halt Downward Trend

and

156 in the preceding week, Dun & Bradsteet,
Inc. reports. Casualties exceeded the 136 and 132 which occurred
in the comparable weeks of 1952 and 1951, but were one-third be¬
low the prewar level of 249 in 1939.
The week's increase was concentrated in failures involving

April, mostly charge accounts

$102

price policy and wage policy, for
easily understandable reasons, but
even here there are signs both in

week 4,740 cars and 2,081

ended May 28 from

Its

they turned out 7,903 cars and

In the preceding week

Ward's said.

The State of Trade and Industry

ing in this country.

output for the past week was made up of 101,637 car»

Total
and

opinion
In

Government;

supplier strikes, accord¬

Reports."

should
ters

the

5.2% below the corresponding week in 1951.

like 1952 week.

Council should

the

of 7,913 cars, or
year ago, but a decrease

increase

aggregated 101,637 cars compared with 132,157 cars (re¬
in the previous week, and 76,256 cars turned out in the

vised)

the corresponding week a

above

ing to "Ward's Automotive

the ideas of econo¬

shades

represented

below

Output Recedes Further in Latest Week
Passenger car production in the United States last week con¬

than simply an advisory

agency

competent.

deal to influence economic

all

of American

total

week's

tinued to decline because of the wave of

could be aired and argued out.

Economic Advisers persons

who

forum

the importance of ap¬
members of the Coun¬

(
.

U. S. Auto

research, by provid¬

economic

and

preceding week.

guidance

profession

the Association

according to

cars,

of 42,181 cars, or

tribute to the work and thinking

to help to make eco¬

769,618

The

been

upon

Loadings Fall 1.3% Below Week Ago

Railroads, representing a decrease of 10,187 cars, or 1.3%

the

phasizes

economics, like

Jawbone

nomics.-

totaled

personalities of the indi¬ ing materials for economic in¬
and
by providing
a
viduals involved, which only em¬ struction,

Fourth, it is the responsibility
the Council to persuade; that

is,

Car

Loadings of revenue freight for the week ended May 23, 1953,

that the new Council will
greatly extend and strengthen the
relationships between the mem¬
bers of the Council and its staff
and the economics profession gen¬
hope

decisions.
•
the explanation may lie

Part of
in

"Jawbone Economics" //

called

are

It was 1,149,-

output reported for the corresponding period two years ago.

projects

responsibility in vice, and criticism. It should con¬

of
and

52,209,000 kwh. above that of the pre¬

was

966,000 kwh., or an estimated 16.3% above the total output for the
week ended May 31, 1952, and 1,515,952,000 kwh. in,excess of the

out

to farm

7,960,693,000 kwh., (preliminary figure) according to the

ceding week when output totaled 8,012,902,000 kwh.

work

afford

industry for the week ended May 30, 1953, was esti¬

The current total

to universities
or other research institutions.
Whatever the reason, I would

research

nomic policy

Engage/in*

Should

make

of policy.forma¬
tion, public and private.
"7

ful in the process

Council

positions

Government

the Council be really use¬

can

able

the

power

Edison Electric Institute.

erally. The Council should be a
focal point for economic thought
in this country.
It should draw
impressed with the speed with
which
academic
economists cut freely upon all competent, pro¬
off their long hair when they en¬ fessional economists for ideas, ad¬
I have always

Government.

projec¬

these

rid

Council.
been

and

mated at

of the
Neither has the Council
in

economists

distributed by the electric light

The amount of electric energy

the interest of other

enliven

also

impossible to achieve full em¬

art of the

the

called

that

Curtailed by Memorial Day Holiday

Electric Output

possible. If cial position to pay the expenses
economics of of very many consultants, or to
send the members of its staff into
drew back many academic economists might the field —an experience which
well be called the theory of the
with each
would not only enhance their pro¬
the report impossible. Too many academic
economists can only show how it fessional competence but would

even

(2437)

The Commercial and Financial Chronicle

to this state¬
the present

sidered an exception
ment.

...

Bookings continued small

and mostly of a fill-in nature as

off until after the new wheat
movement had begun. The export flour market remained'
very slow.
Cocoa prices moved in a narrow range and finished
slightly lower for the week in limited trading. Warehouse stocks
of cocoa rose moderately to 153,772 bags, from 140,540 a week

buyers showed a disposition to hold
crop

operating rate of steel companies

and 101,807 bags on the corresponding date last year.
prices trended somewhat easier, reflecting dull demand
from roasters who reported a tapering off in the call for their

capacity for the entire industry

finished

The

American

Iron

and

Steel

Institute announced that the

having 93% of the steelmaking
will be at an average of 100.3% of

1, 1953 equivalent to 2,262,ingots and steel for castings unchanged from a week

earlier,
Coffee

product. Domestic raw sugar prices held fairly steady
active trading. Lard was easier in sympathy with

capacity for the week beginning June

in moderately

000 tons of

vegetable oils.

For the like week a

ago.

duction 2,259,000 tons.

actual

output

was

month ago the rate was 100.2% and pro¬

A year ago when the capacity was

On June 2nd of last year
a

six-to-three decision ruled that the

steel

smaller

% of capacity.
the United States Supreme Court in

placed at 804,000 tons, or 38.7

government's seizure of the

unconstitutional. Immediately
decision the United Steel Workers Union ordered a

industry on April 8, 1952 was

following this

strike, thus accounting for

the sharp decline in output that week.

Live hog values were firmer as were

wholesale

also higher for the week.
Domestic cotton prices moved irregularly lower last week
largely influenced by the pronounced weakness in grains, renewed
prospects of a truce in Korea, and continued slowness in textiles
pork prices. Steers and lambs were

and in export trade.

Sales

volume

.it

in the

10 spot markets increased

cotton

moderately

Domestic consumption of
in the five-week period ending May 2, as reported by the
Continued on page 34

for the week but was under a year ago.

•

,34

The Commercial and Financial Chronicle...

(2438)

Continued

jrom

reference

out

page

economic

when

exist

The State oi Trade and Industry

made

the

last

than in the comparable week

of each retail dollar

tion
time

was

year

were

sensible

fi¬

The extension of the tax

December,

schedule

the

•

47%,

effect

The individual income tax rates

entire

produce

gain

between

taxation.

the

and

will

lost

the
for

Profit^

amendment

from

its

the

months

It should
President's

fects

this

familiar

are

I shall not

elaborate

disadvantages and bad ef¬
form
to

all

tax.

They
It

will
relief when the tax is off the
I want to emphasize that

us.

books.

an¬

the;' nually by ,* the. expiration of the the
recommendation
is - for
a
Excess Profits Eax at the end of six--months extension.
We-would
volve a loss of $3.0 billion on a this calendar year.
,/=.•
-.rv, \
Object - to any extension beyond
full-year basis and $1.1 billion in
"Though a 52% corporate tax that time.-,.
*>
;

highest

clear

A continuation of these

amount

same

the gen¬

turn

statement that we disapprove in
principle of so-called excess prof¬

in the lower and middle brackets

without

recommendation

April 1, 1954, should be

rescinded.

modification, for six
through Dec. 31, 1953.

into

background,

Tax,

million in the

scheduled to

now

representatives

the extension of the Excess

"(2) The reduction in the reg¬
ular corporate tax rate from 52%

and $800

year

eral

President's

planned to go down at the be¬ extra five percentage points on
ginning
of
next
January , by " the corporate tax will bring in
amounts ranging from about 10-%
about $2 billion a year, about the

por¬

brackets.

This

will .in¬

the purchasing of automobiles and parts.

full

would

through
maintain

the

with

staffs and the Treasury.

With this statement

fiscal year 1954.

revenue

for

rate

mittees
your

are

spent for hard goods than at this

1952; sharp year-to-year gains continued to be noted

million in fiscal 1954.

spent

A larger

loss

would

in revenue of $800

that is, on next July 1, the
Profits Tax expires.
Tnis
a

1953,

30%

and

year

fiscal

full

the

Excess

will involve

generally

earlier.

start

$2.0 billion in

shoppers

year,

the

year,

Up Aided By Mild

supplies.
of

penalizing efficiency and en¬
couraging
waste
will
continue
through this year in any event.

possibly

cannot

out of such

now

Weather and Promotions

most

cuts

might

in view of present conditions.

Shoppers increased their spending slightly in most parts of
the nation in the period ended on Wednesday of last week as
attractive promotions and mild weather stirred their interet. The
most marked rises were in the buying of apparel and outdoor
during*

effective.

plan

military

which

tax

become

Census, was 905,000 bales, or an average of 36,700
bales per working day. The latter was slightly below the March
average, and compared with 33,900 in April last year.

the

nancial

Bureau of the

Trade Volume Holds

the

situations

Thursday, June 4, 1953

The total dollar volume of retail trade in the week

esti¬

was

fiscal

mated by Dun &

Bradstreet, Inc., to be from 2 to 6% higher than
Regional estimates varied from the cor¬
responding 1952 levels by the following percentages: New Eng¬
land and Northwest -fl to +5; East and Midwest -f-2 to +6;Southwest +4 to + 8; South and Pacific Coast +3 to +7.
Apparel stores in most sections noted a strong surge of shop¬
ping last week. The total receipts of apparel retailers continued
to surpass the level of a year earlier. Gaining most in popularity
the past week were cotton dresses, denim sportswear and men's
lightweigth slacks. The demand for luggage rose with the ap¬
proach of the vacation season; plastic-covered pieces gained wide
the level of

year ago.

attention.

Shoppers continued to spend
they did

a year

furniture

more for household goods than
Interest turned from television sets, large
major appliances, and washers to room coolers,

earlier.

items,

April

the

outdoor furniture and gift items.

Trading activity in most wholesale markets in the period
on
Wednesday of last week was about on a par with the
high level of the prior week; as during recent months, the total
dollar volume

that of

year

of wholesale

orders remained slightly higher than
Inventories of most items were moderately

earlier.

larger than the year-ago level with the most pronounced rises in
durables.

consumer

remaining

22%.

reduction in individual taxes must

This will reduce the total regular
rate on the bulk of corporate in¬
come

from

mean

52%

loss

in fiscal

47%.

$2.0

billion

with only

year,

come

taxes

country-wide basis, as taken from
the Federal Reserve Board's index, for the week ended
May 23,
1953, advanced 8% above the level of the preceding week. In the
previous week an increase of 6% (revised) was reported from that
on a

of the similar week of 1952.; For the four weeks ended

1953,

increase of 6%

reported.

was

reduced, for a
loss of $1.0 billion on an annual

trust fund has

basis

$200

$18

billion.

tax

rates

million

"The

fiscal

1954.

reductions

all

add

ther

deficit of $6.6 billion,

immediate

tax

reduction

May 23, 1953, department stores sales registered

sions

These

the

affect

laws.

tax

several

present situation, it does not

increase

seem

benefit

only a relatively
of corporations at

group

six

for

months

ahead

small

There

are

corrected.

ment

make

his

that

In business, a
management
drastically cut back on some

make

hhve

not

greater

disappointed

been

able

reductions

ex¬

penditures.

hoped until a few weeks
that it would be possible to

cutback government spending fast

enough to justify

reduction

individual

income

end of the

Excess Profits Tax

taxes

and

made

But

the

year

can
ac¬

pro¬

also

satisfied

now

proposed

are

all

that

can

made

safely

at this time.
We

live,

said, in

the

President

has

of peril. The dan¬
ger of an atomic Pearl Harbor
is
real.
Reductions
in
defense
an age

spending must be made onlf after
full

account

taken

all

the

security factors involved. We

can,

time,

secure

less money.
me

defense for

Action to date gives

confidence that this result

be accomplished.

might

and

taxa¬

willing to gamble

nation's

cuts,

defense
defense

leave

by too

outlays
open

attack.
A Gamble We Cannot Take

There

cannot

can

take.

second

With

gamble
a

deficit

making

immediate

This would simply

the

time

when

should be extended

Profits
as now

Tax

expiration* date of June 30.
seems

necessary

the fact that this is

vise

in spite of

law

during

tion adopted some time
ago,

with¬

significant

point

these figures is that though
is a very serious barrier

tax

growth for rapidly expanding
companies, it does not affect
vast majority* of companies.

small

the

It falls most

heavily

profitable

large companies.
I want to be sure that
my posi¬
tion on this point is clear.
The

distribution

present

But

with

for

year,

the

cor¬

the

rest

this

calendar

most of the bad effects

present

anyway,

are

As the President has

expiration of the tax

noted, the
June 30

would be

of taxing corporate profits.
"Though the name suggests that
only excessive profits are taxed,
the tax actually penalizes thrift
and efficiency and hampers busi¬

especially hard

Its

impact

the

tax

successful small

advocate

creased

mediate

"The

deficit caused

expiration
scheduled

by its im¬
or

expiration

any

applied at half the full rate,
15%, to all of this year's business
Therefore its bad effects

tax

the

the Pres¬
to

re¬

structure

"to

need

secure

better balance

...

the

profits

same

income

Thus, if
through

for

June

the

entire

the

year.

lost

money

and

made

last

part

large
of the

company

year,
it would still be subject
through December to all of the

have developed over
in tax laws, and gen¬

revenues.

the middle of the year simply
that the rate is lower on

means

peculiar, damaging effects of excess profits taxation on business
judgments, even though the tax
supposedly
expired
some
months previously.
/
:

had

extent

possible, will not discour¬
Since the vast majority of com¬
work, savings and investment, panies are on a
calendar-year
but will
permit and encourage basis, the end of the calendar
year
initiative and the sound growth is the
logical time for the tax to
of our fre^ economy."
expire. I would feel entirely dif¬
you have said in various oc¬
ferently about extending the tax
casions, Mr. Chairman, the present even for one month into another
system has developed in a patch¬ year.

work

manner

It needs
We

are

over

many

years.

pleased to know that

directed

staff

of
on

while

thorough overhauling. fact, that

have

income.

whole

age

its extension

stances the extension of the pres¬
law is preferable to the in¬

message,

time, we must develop a system
of taxation which, to the greatest

earnings
for
growth.
disadvantages of the tax
widely recognized.
I

not

same

years

erally

now

would

expect

tions .which

businesses which must depend on
These

spects.

existing inequities
simplify the needless complica¬

present

reductions

economies

the

work

The sequence of these
reductions was fixed by
legisla¬

the

remove

undesirable

way

expansion.

In the

ing in its consequences. It would
simply mean that the tax would

under

accordance

ident referred to the

This

the tax in June would be mislead¬

the year.

The
from

develop¬

effective

achieve in the future."

drawn

ing into account four major tax
scheduled to

made

the

Excess

short-term substitute tax.-

occur

expenditures

the

The
projected deficit of $6.6
billion for fiscal 1954 is after tak¬

are

being filed with
the Committee today.

porate tax burden is bad because

ent

reductions which

the

this

large

companies continued in

that year. The full details
1950 returns are

should

law.

that

between

of the tax barriers to growth and
the
tax penalties
on
efficiency.

cause

legis¬

deficit, again build for more than a matter of months.
inflationary
pressures
and However, under existing circum¬
postpone

present

show

tional

The

tax

message

the

sound

and small

better system of excise

economy, sound money
and a balanced
budget can be at¬
tained.

Congress

income

relationship

able to make and because of addi¬

"(1)

security

taxes.

the

will

1951

said:

his

are

increase

that

from

Congress of May 20, the President

immediate

retained

cuts in

in¬

net

in proposed
which the present
Administration has already been

concerning
lation.

ness

with

misleading in many re¬
Regardless of the date of
expiration, the tax is computed
on a full-year basis.
Even though
it expires on July 1, its provisions
are
applicable to the rest of the
year.
The expiration of the tax

President has made the following
recommendations to the Congress

$6.6 billion, it is not safe to
gam¬
ble with the
country's economic

further
as

spending

that the reductions

gresses.

the

rapid
which

confident that further cuts

can

these

action

the

July I. Unfortunately, that is not
possible.

government

we are not

in¬

existing
law, it would have been impossi¬
ble to accomplish on the basis of
the
previous
Administration's
budget without additional deficit
financing with its resultant infla¬
tionary pressures. A reduction will
be justified next January only be¬

for six months beyond its present

with

I had

ago

all

guessing may never come. Much
though we dislike the level of
tion,

pending

maintaining military se¬
curity and economic security, the

message

personally

Slx-

to between 1 and 2% on the high¬
est brackets. While this reduction

need for

of May 20 to tivity and later rebuild it if the
the
Congress, President Eisen¬ original cut turns out to be too
hower showed a reduction of
$4.5 large.
On matters affecting na¬
billion in the proposed
expendi¬ tional security, we cannot take
tures; this would bring the pro¬ this risk. The chance
for second
jected deficit down to $6.6 bil¬
lion.

basis

total

middle incomes, graduating down

facts, and taking into account the

Bat We Need the Revenue!
that year. This would
the
deficit
$11.1
billion.

the

showed

corporations

same

Jan. 1. This reduction will amount
to about 10% on the lower and

President's Recommendations

Excess Profits Tax Is Bad-

$1,385,000,000.
total, $1,234,000,000 were

this

for

recommendations

rdvisions

under

should

Much

now.

returns

came

"(5) I believe that a reduction
in personal income taxes can and

Pre¬

year..

for

companies with incomes below
$250,000. The incomplete figures

taxation.

'though I dislike the Excess Profits

page

mated for

the

will

ment of

provisions of the tax laws which

change from that of 1952.

system

rescinded

Tax, it should not be singled out
as the only one for special treat¬

jrom first

tax

modified

inequities affecting both corpora¬
tions and individuals under many
need

returns

from

"The reductions in excise taxes,
which would take place next
April

de¬

many

that

Profits Tax of

cess

fects in the excise taxes and many

the similar week of 1952, while for the four
weeks ended May
23,
1953, an increase of 6% was reported. For the period Jan. 1 to

Continued

reduced.

figures

of the tax
paid by large companies. The

1950

which

projected

relief

any

income

was

January.

least

According to the Federal Reserve Board's index department
store sales in New York City for the
weekly period ended May 23,
1953, registered a rise of 7% from the like period of last
year. In
the preceding week an increase of
9% was reported from that of

taxation

submitted

for any other taxpayers.
Individual income taxes need to

May 23, 1953, volume registered

fund

the

424,000 corporations with tax¬

Furthermore,, most

The fur¬

is not required.

for

excise

cluded

fair to let the first reduction

holiday. Trade observers place the decline at close to
15% under
the volume of the like week in 1952,

proposals

corporations
great many individuals.
In

trade in New York" the past week suffered from
cooler
weather and to a lesser degree as a result of the
Memorial Day

the

profits !

12%

comes of more than
$250,000 each.
"(4) The wide variety of exist¬ This means that
only $151,000,000
ing excise rates makes little eco¬ or 11% of the total tax

many

the

Retail

from
*

and

5% above 1952.

addition

than

smaller in that year.

present

well

an excess

less

1951, income, filed in 1952, show
the
percentage
was
even

survivors

currently

was

that

reached almost

This

able

made. And second, there nomic sense and leads to improper
are many inequities and hardships
discrimination between industries
which occur from various provi¬ and
among
consumers.
Specific

May 23,

Jan.

are

tax increase

can

and

now

Receipts

would, flow

scheduled of tax reductions. First,
with

old-age

of expenditures.

excess

$8.0 billion for a full year and
$2.1 billion for fiscal 1954.
Two things are wrong with this

For the period

liminary

tax.

1, should be postponed
1, 1955.

until Jan.

safely

Department store sales

the.

scheduled

and

income, show that 50,200

next Jan.

also

are

1950

both employees and employers,
now
scheduled to go into, effect

time, April 1, 1954,

same

excise

for

corporations paid

At the

considering the Excess Prof¬
Tax, it is important to see

its

"(3) The increase in the oldage insurance tax from IV2 to 2%

small loss

What Corporations Pay EPT
In

what corporations pay it.- Com¬
plete data on returns filed in 1951*

first, for the benefit of the

entire economy.

will

1954.

These
ended

1, 1954, the normal' the
income tax is to be a reduction in both individual and
30% to 25%, with regular corporate tax rates.
A

from

surtax

full

is too high for the long run,
budget will not now permit

\ rate

;

corporation
reduced

various

1954.

the

your

Joint

you

staff and the
Committee

this revision.

the

hard at work

Treasury
on

We appreciate

the

are

same

also

subject.

the opportunity for
cooperation in various ways. We
already have set up ten joint com¬

earlier

ago

mentioned

the

had had to reduce the

estimates

tax

receipts.
month
left, we know that receipts will
be at least $1.5 billion below the

For this year, with

only

estimate made last
next

year,

tfre

January. For
reduction is $1.2

billion.

Our'figure for next year's
receipts differs by only $100 mil¬
lion

from

that

made

independ-

Number 5226. The Commercial and Financial Chronicle

Volume 177

(2439)

■S*

ently by the staff of your Joint Continued from first page

uommjLHec.

the

established

(

•

not mean

collections

tax

mat

are

the

•tailing off,; it just means mat tne

original estimates were too hign.
Collections tins year win

dollars

eral

billion

any

tne

sev-

year,

even

the

with
in
■

reductions

tax

Presidents

tne

will

ceipts
year.

re-

inconvenience.

modification

amendment,

first step

necessary

economic security.

towards

will

(It

sible for tax reductions

(

lessen

budget,
a

i ■■

group

stations will have to be developed

privilege

«£>a- .£*• Ught^expmeM *5
and re- ™uca deduced from theory as

convinced that this is

are

sound

striking,

Sh°uld desire
therefore very
to the

the

country as
President's
I

program.

tion.

elimination

under which the

many

the

in¬

equities and injustices for all tax

inconsistent

of coercion

written

which

about

freedoms

the

mucll

both corporate and indi¬
be made at the same
as
the Excess Profits Tax

i time
fair

spoken,

DAGUE

and

Congressman

from

the

contemporaneously for all.

believe

subject of
strongly

very

Offer Uranium Shares

g r

i eva

n c e s

York
shares

the

protests.

Uranium

Corp._ is

hand,

assignee of approximately 90

claims

mining

located

which

Range

uranium

strike,

ently of importance, was

by the
Denver, Colo.
reported

area

local

recently
of

Paul

Hon.

Dague

doubt

will

ever

very

applied

4.1.

much whether it

with inin
the operation
of all public
utilities, in¬

CHICAGO, 111.—John D. Ames
been admitted to partnership

electric
power and
lighting, and

tions,
Everest

135

property
rights or civil

of
York and Midwest Stock

liberties, and
in fact is an

Whipple

Bacon,

Co,

South La Salle Street, members
the New

such strikes without forcing

exercise of the

Exchanges.

Constitutional

guarantee
freedom

VilasHickey Absorb

speech.

The

of
peaceful pick¬

supporters

Gilbert Postley Co.

number

while po-

the

•

I have indicated above the kind

law.

the

enforce

rJSht to strike is

locals

all unions and
what
purpose

dependence

However,

icket line serVe? Does it

doeg the

any

way

—

above

and

be-

yond the simple right to strike—

try and bring the

company

would

line.
Therefore, it
only purpose for

the

seem

Picketing would be to encourage
sympathy of other locals and

^us to contribute to the tendency
long practiced by labor to, hi

effect,

bring

about

secondary

The

right

their
affairs,
even if they are not in sympathy
with the strike.

organizations than it is

Therefore, it is
the

first

—be

Chairman of the Board,
General

be deprived of the right of peace-

permits the unions to bring their
the
attention of
the public and

—

would

Taft-Hartley

specific than
law is on this

particular problem,
HERBERT J. YATES

President, Republic Productions,
Inc., North Hollywood, Calif.
have

always felt that during
picketing
infringes
on
property rights and civil liberties.
Furthermore,
during
the
two

strikes

es-

strikes

sential part of

had

the motion

picture industr y

few

years ago, my

conclusion
after

the

strikes

were

settled

was

that the pick¬
Harry A. Bullb

ing is an infringement of property rights be-

it seeks to deprive others of
their right to enter the property
for any legitimate purpose and
cause

challenges the rights of others to
work in the picketing area. Furthermore, I believe that mass
the

weakens
.

and

penalized.

the

I believe this
is prdper. Orderly
picket-

union because

taken

Peaceful picketing

cause to

belief that

pickets themselves

but

opinion unions should not

is an

respect the pickets

the last analysis, such a po¬
sition would not be absolutely new

Mills, Inc.,

Minneapolis 1, Minn.

ful picketing.

course

who

such a tremendous
people and causing

to avoid strikes in these pub-

.lrV Jface of labor custom,
mi&ht be
fro™ a practical
viewpoint-more effective to con*
neutralize picketing
rather than to abolish it!

rather than the

HARRY A. BULLIS

ing

those

In my

Therefore, after analyzing these
P°slti°ns, it is my conclusion

a^out

"right to picket," but I think hand, I believe
more important to find a
mass
picket-

lic service

t0 protect the rights of the

essential to the well-being and in-

free speech and

it is far
way

taken

nothing

seeing

undue the employees'

Clair Engie
to eliminate picketing. If we are
to have "peaceful picketing," then
Wall Street, eting do not
New^York City,*7 members of the have to argue that it is an essen- I think that should be well defined
New York Stock Exchange, an- tial
component
of the
strike and any violations should carry
nounce
that they have absorbed weapon in order to sustain it, al- with it substantial penalties.
the over-the-counter trading busi- though it undeniably is, because
I doubt if this letter will be of
ness
of Gilbert J. Postley & Co. peaceful picketing carried out in much use to your symposium as I
and
that John O. Werkmeister, such a manner as not to consti- am under the impression that it
Jr., and Harry Fadem are now tute intimidation is in fact an ex- would be impossible to eliminate
associated with them.
ercise of Constitutionally guar- picketing of industrial concerns as

Vilas & Hickey, 49

intimidate

right to strike
and to tell
thousands of people to be thrown people
why
out of employment.
they are on
Of course, the "right to strike" strike,
is an entirely different matter than
On the other

hardship

°.n

and hearing nothing.

and

Admits J. D. Ames

has

nearby,

are

communica¬

Congressman from

infringe

sanction

—

p0wer

violence,

with

attempt

lice

cluding trans¬

Bacon, Whipple Go.

•

and

peacefully

terruptions

ways looking to the next election, strengthen the position of the local
to .enforce laws now on the books. tnwa^ the rnmnanv'? T don't think
We have seen repeatedly pickets t0Ward ttle comPany • 1 don 1 ttunk
so!
that practically blockade the esThe only purpose for striking is
tablishment struck, threaten fel- for the union to

others to remain at work or to go

away

from

action

do not believe the assertion
partner in William L. Burton &
Co.,, 25 Broad Street, New York that picketing infringes on prop- any other phase of service which
City, members of the New York erty rights and civil liberties can affects such a tremendous number
Stock Exchange.
any longer be argued because the of people when these strikes occur.
I do not believe that a few
Supreme
highly specialized employees, for
Court has spe¬
instance, should be able to strike
cifically held
and cut off the water supply of a
that
peaceful
city the size of New York. Some
picketing does
means
should be found to settle
t

should
found

n o

...

assembly includes
think, how- the right to picket, but it does not
ever,
that and should not authorize the picksome
way et to interfere with the liberty of
tion.

portation

will become

of officeholders, al-

prospective customers,

sales distribu-

means

California

agajnst the company, which gives
^at
Qr
any 0ther local — its

illegal, as laws are needed, but above every- boycott
manufacturing
and thing we need officials who will
.
'

HON. CLAIR ENGLE

U. S,

possible to make the of legislation I favor, if additional

placed under restraints.

Admit T. T. Madsen

picketing

of
to

plant then it becomes completely
un-American, - and
should
be

-T. Thomas Madsen

EVEREST

■

restrain

workers

part

and

entering

William L Burton to
'

Allison

Chairman of the Board,
Marathon Corp., Rothschild, Wis.

undertakes by

forcible

press

;

when

violence

appar¬

James

abuse

picketing is
coupled with

the

in
Colorado. Certain of these claims
are nearby the Wood claims upon
Front

Colorado

...

low-employees

con-

the statute books now, but

the

destruc-

being

certainly there is not adequate enforcement, nor is there courage

violence,

practice

On the other

stock at $1.25 per share.

Atomic.

its

thering

City, are offering 232,000
of Atomic Uranium Corp.

common

The

of New

Inc;

Co.,

...

laws

intimida¬

of fur¬

and

strike

the

Very hkely there are sufficient

picketing, violence, threats

em¬

contract

labor

viously because it feels that such

its

from reaching the
office or store against

form of organized government, and really effective penalties should be imposed upon any

their

frequently, mass pick- Jank and jTile
eting is accompanied by force or
"
violence, by abuse and threats.
Therefore, the

tive of any

phasizing

ducted. Too

this

means

establishment

the

with

struck

which

not

denied

Luckhurst & Co., Inc.
Luckhurst

others who wish to do

factory,

picketing, I
that labor 0f these practices.

should

Stein

while

tion constitute

Pennsylvania

dealing can be done equally

the

tary basis. It ought, however, to force,
be illegal to have mass picketing
No. 2—On the other hand, I feeT,
which
prevents employees who that another position could be
wish to continue at work from
taken and that is this: When a
entering .the premises, or cus¬ local goes on strike it does so ob¬

being

mass

mob

fail

which

locals

picket line—and thus
sympathy to the pickets
—should be prosecuted under the
Taft-Hartley law because they are
enacting
a
secondary
boycott,

There¬
could be that

position

other

exhibit

volun-

business

believe

that

Epstein

law.

Hartley

one

cross

picketing,

Taft

those

per-

peace¬

tomers

the

are

PAUL

HON.

and

In that way justice

proper

and

fore,

Alfred

in violation of

Strikers

can

.expires.

believe

payers,

vidual,

peaceful picketing

secondary

ers.

they have

action

tantamount

boycott and is

right to seek
public support

by law.

Burleson

feeling that picketing

form

with

Omar

c o u r s e—

such

the

be protected

will be used in developing a bet¬
ter tax structure

ALLISON

cases should

justifiably be made
Then all of our efforts

reality.

right to strike

the people can

line, then—

erties of othmitted

appropri¬

right to strike.

^expenditures so that the reduction
in individual income taxes for all
a

struck
against, to not
the pick¬

cross

terference

definitely opposed

com-

p a n y

believe

a"d 1

g rievance

with the

abuses and in-

ate part of the

current

selves to further reducing

probably
unconstitu¬
legislate so as to make
practice of picketing illegal.
to

locals,

which have

un-

and

they

but

inherent

get rid of it once and for all. In
the meantime we will devote our-

believe

and

months and that we the

for six

other

opinion it would be

ourages

members

York

the

Taft-Hartley Act.

be extended without modification
<

have

Warren Petroleum Corporation,
Tulsa 2, Okla.

therefore, that the tax

urge,

the

President,

whole is back of the

wise

practice of picketing under should be

JAMES

We are satisfied that the

fying.

ful

ing editorial support from all sections of the country is very grati¬

«.

New

Congressman from Texas

The overwhelm¬

program.

e n c

President, Davega Stores Corp

tional

should

men

can

picketing itself—by its
existence—is a device which

very

STEIN

not^avTSelighTio prX tytte pickets
anyone from working who with the lib

vent

HON. OMAR BURLESON

tional economic security.

Briefly, I fee! that picketing

be viewed in two different ways:

...

establish itself. I think those lim-

gambie witn na-

President, Pfeiffer Brewing Co.,
Detroit, Mich.

No. 1—If

But

will

considerable

strong there may be some jusi President, United States Fidelity it is necessary
and Guaranty Company-,
tification for certain limitations oh
to r e g u 1 a te
Baltimore 3, Maryland
picketing that did not exist when
picketing so as
I fully agree that any man or
^ was. weak and fighting hard to
to
prevent

specific°case^of sodaTconflict.
It

ALFRED EPSTEIN

Taft-Hartley Act might result
elimination.
H. M

E. ASBURY DAVIS

It will make

sound dollar.

maintaining

heln

It will give

time to get control of the

•••

Now that the union movement

Excess

Profits Tax for six montns, witn-

over

well

too

speech.

somewhat American ought to be able to
more than that, but it is a legiti- stand up on a street corner or outmate part of the right to strike side; of a plant and say what he
unless and until pickets use physi- thinks, and I hope we never come
cal violence or by their numbers to a place in this country where

out

been

its complete

circumstances

many

man'' tns and conduct create great public that cannot be done,

the

extension

The

program,

higher
"
'

oroDoseu

freedom

free speech.-It is, I grant, under anteed

in the history

year

country.

than

has

period of years and would stir up
so much opposition that
amending

in estimates do

reductions

rl he

practice

case
.

pick-

the

ets

not

were

benefited,
were

nor

the

studios; in
fact, much of
the loyalty we
had

from

our

Herbert J. Yates

employees
who

were

course,
,

this
.

strike

was

particular

lost.

jurisdic-

it substitutes coer- tional fight was an attempt to gam
"
power by several unions.

cion for reason.

(2440)

The Commercial and Financial Chronicle

.Thursday, June 4, 1953

Indications of Current

Business

Activity

AMERICAN IRON AND STEEL INSTITUTE:
steel

Equivalent
Steel

operations

and

gallons

Gasoline

June

Month

Week

§100.3

(bbls.

§2,262,000

38.7

2,259,000

AMERICAN

stills—daily

6,884,000

May 23

—

6,359,950
116,983,000
23,143,000

22,960,000

6,359,200
-

Benzol

6,827,000

May 23

2,296,000

2,615,000

2,665,000

9,840,000

9,244,000

9,666.000

Not

8,448,000

8,666,000

8,859,000

Available

Distillate

fuel

Residual

—

oil

fuel

ASSOCIATION

oil

21.360,000

67,052,000

64,941,000

60,343,000

40,258,000

39,034,000

May 23
of cars)— May 23

769,618

779,805

779,804

761,705

657,494

665,661

CIVIL

ENGINEERING

(number

of cars)

CONSTRUCTION

(no.

675,261

636,467

ENGINEERING

—

State

$257,642,000

$373,113,000

$307,813,000

—May 28

155,167,000
102,475,000

185,125,000
187,988,000

May 28

97,269,000

88,324,000

162,392,000

—

14,151,000

25,596,000

54,162,000

Federal

COAL OUTPUT

(U.

Bituminous coal

BUREAU OF

and

lignite

coke

May 23

(tons)

May 23

—

(tons)
STORE

SALES

SYSTEM—1047-49

8,750,000

INDEX—FEDERAL

AVERAGE

9,125,000

9,000,000

687,000

614,000

511,000

*120,000

121,100

111,000

113

*104

105

FAILURES

(COMMERCIAL

May 30

AND

—

DUN

$7,960,693

8,012,902

7,938,823

6,810,727

May 28

INDUSTRIAL)

INC

BRADSTREET,

168

156

169

136

steel

Scrap steel

lb.)

—May 26

4.417C

4.390c

4.376C

$55.26

Electrolytic

(E.

May 26

$38.67

$39.33

$33,17

tin

(New

May 27

Bead

(St. Louis)

Zinc

29.675c

(East St. Louis)

29.700c

29.725c

29.600c

30.350c

27.425c

97.000c

99.000c

94.000c

121.500c

13.250c

13.000c

12.000c

15.000c

May 27

13.050c

12.800c

11.800c

14.800c

May 27

11.000c

19.500c

—

June

91.79

92.55

June

102.96

103.47

104.31

106.39

106.92

107.44

—June

105.17

105.34

106.21

112.75

——:—June 2

.—

Aa
—1

.—:

90.65

Railroad

Group
Utilities Group

Industrials

102.30

103.64

109.42

98.88

99.36

100.00

104.31

102.80

107.44

June

YIELD

corporate

101.31

101.64

102.46

102.63

103.64

109.60

105.17

105.86

106.56

113.50

June

DAILY

June

Group—

BOND

101.80

June

3.19

3.10

3.04

2.60

AVERAGES:

—

June

3.57

j——June

3.44

3.54

3.37
Aa

—-—

„—

•;—__——

June

Railroad Group
Public Utilities

June

Baa

COMMODITY

3.31

3.16

t<^-93

•

3.43

3.38

3.02

3.64

3.61

3.53

activity—
(tons)

at end

DRUG

3.79

3.75

3.49

3.67

3.65

PRICE

3.31

3.59

3.53

3.19

3.40

3.36

2.98

419.3

416.4

417.3

433.3

service

AND

(customers'

purchases)—

203,693

204.133

249,134

251,473

184.365

165.162

245,157

205,632

529,536

454,897

Stocks

May

Cotton

spindles

106.24

106.52

106.60

109.12

May

21,775

short
other

23,084

26,849

746,831

752,077

631,418

$33,993,771

$32,580,065

$27,801,830

21,485

21,544

24,910

20,185

May 16
—

sales

173

123

238

21,312

21,421

24,672

584,635

593,701

699,451

536,288

7,849

May 16

sales

by dealers—

4,700

10,682

3,623

May 16

576,786

589,001

688,769

532,665

May 16

;

Dollar value

$23,289,207

$23,865,896

$27,679,814

$22,200,684

Short

shares—Total sales
sales

Other

sales

180,790

208,640

163,080

"May 16

purchases by dealers—
of

179.530

May *6

179~530

180,790

208~640

163~080

242,180

May 16

315,680

258,050

246,420

ROUND-LOT

STOCK

YORKM&y

SALES

ON THE NEW
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS

(SHARES):

Round-lot

Short

sales—

sales

Total sales

May
May
May

:
——

BOUND-LOT

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in
which registeredTotal purchases
Short
Other

transactions initiated

—

Active

spindle

154,020

146,590

618,170

576,630

963,710

772,190

723,220

1,126,750

LABOR

620,610
121,150

163,040

456,690
.

577,840

162,600

149,060

328.500

22,000

20,900

22,500

166,300

159,920

354,150

150,500

188,300

180,820

376,650

162,100

222,862

271,420

349,335

134,100
11,600

9
9

59,960

82,560

47,390

38,390

314,470

321,531

386,065

310,126

374,430

404,091

May

1,009,192

1,130,810

433,455

1,837,026

228,605

348,516
983,315

May

(1947-49

NEW
=

SERIES

—

235,980

250,050

232,930

171,140

1,098,940

1,058.081

1,703,925
1,936,855

917,316

DEPT.

1,334,920

1,308,131

1,088,456

100):

hours

Processed

;

other than farm and foods—

•Revised figure.

1953

;

109.8

109.9

110.0

May 26

foods

All commodities

Jan. 1,

May 26

Meats

CAN

STRUCTURAL

INSTITUTE

1,574,31®

6,402,108
137,086

3,038,791.

127,884

Shipments

99,762

1,173,976

641,414

19,926,000

20,221,000

19,626,000

22,393,000

23,163,000

20,221,000

19,613,000

9,365.000

9,948,000

4.70.5

481.7

424.3:

305,842

258,482

209,10S

259,675

STEEL

22,958,000

19,926,000

11,608,000

omitted)

266,337

230,670

*$71.93

$65.67

(AMERI¬

STEEL

CONSTRUC¬
TION)—Month of April:
,
Contracts
closed
(tonnage)—estimated

(tonnage)—estimated

FACTORY EARNINGS

AND

HOURS—WEEKLY

AVERAGE

ESTIMATE —U.
of April:

DEPT.

LABOR—Month

Weekly earnings—
All
manufacturing
Durable

■
-

$71.40

goods

77.75

*77.52

70.90

62.65

goods

*63.60

58.75-

Hours—
All

manufacturing

Durable

40.8

39.®

40.8;

*40.0

38.*

$1.75

$1.65-

1.85

1.7*.

1.59

*41.9

39.4

1.86

goods

*41.1

41.8

goods

Nondurable

1.59

1.53:

All

manufacturing

goods

VEHICLE

PLANTS

FACTORY

number

SALES

FROM

(AUTOMOBILE

FACTURERS'
Total

$1.75

goods

MANU¬

ASSN.)—Month

April:

vehicles

723,566

Number

passenger

Number

motor

Number

motor

700,685

529,585

596,633

566,320

415,357

126,788

134,129

113,631

145

236

5975"

$1,594,377

trucks.

$1,513,425

$1,314,867

coaches

cars

NEW

YORK

STOCK

of April

Member

Credit
Cash

EXCHANGE—

(000's omitted):

firms

Total

carrying

customers'

extended
hand

Total

and

margin

net

debt

accounts—•

balances

customers
in

customers'

banks

free

25,250

credit

27,878

308,316

314,423

360,840

737,841

balances-

Market value of listed shares
Market value of listed bonds

744,360'

755,627

38,223:

114,861,878
i

118,222,952

107,847,900

98,561,619

99,535,255

97,354,991

57,753

—

Member borrowings on U. S. Govt, issues
Member borrowings on other collateral

March

Total

(in

personal

Wage

39,380

103,50*

1,046,648

851,585

*$280.9

$261.0

1,158,672

billions):

income

$282.5

and

salary receipts, total
employer disbursement

Service

193.2

for

social

Proprietors
Total

PRICES

income

and

transfer

RECEIVED

—

97.3

98.2

99.3

vlay 26

104.8

*104.5

3.®

4.7

4.8

*53.3

50.7

21.7

21.5

21.0

13.8

FARMERS

DEPT.

1909-July,

—

13.4

12.*

262.8

*261.1

242.7

264

August,'

of March

dividends

income

NUMBER —U.

31.®

3.8

4.7

payments—

nonagricultural

TURE

and

*33.1

53.0

income

20.®

In¬

;

—

rental

interest

47.0

3.9

contributions

labor

50.3
*22.2

33.2

employee

Total

77.7

50.4

surance

Personal

173.0

*86.2

22.5

Government
Less

177.®

*188.2

87.1

industries—

*191.8

189.6

industries

All

263

28®

INDEX

AGRICUL¬

1941

100—

15.

farm

products

Crops
Food

Feed

251

206

229

424

435

265

■

266

109.6

Oil-bearing

crops

105.3

109.1

Livestock

fay 26

94.3

93.0

94.7

114.9

Meat

"day 26

113.4

113.6

113.3

113.1

Dairy products
Poultry and eggs

and

products

animals

255

309

215

17S

237

265

287

28*

274

305'

372

277
•

277

301

{Decrease, all stocks.

209

248
291

Truck

•Revised.

247

424

240

208

253
246

grain
grain and hay

112.0

lllncludes 665,000 barrels of foreign crude runs. §Based on new annual
capacity of 117,547,470 tons
against the Jan. 1, 1952 basis of 108,58 7,670 tons.
{Preliminary figure.

848,055

1,940,751

5,534,848

Cotton

._Z

products

(000's

Fruit

commodities

Farm

May

Tobacco

Commodity Group—
All

772,176

1,865,090

—

Unadjusted—

ZIII
May
—"I"May

PRICES,

—

1,159,190

May

sales

WHOLESALE

710,330

sales

Other

623,730

Total round-lot transactions for
account of members—
Total purchases

Total sales

Commodity producing
Distributing industries

—May

Total sales

905,071

2—

May 2
Active spindle hours per spindle in
place Apr.

Total

"May
"""May

sales

Short

5,886,550

May

sales

Other

11,011,560

purchases

Short

6,814,280

ZZMay
ZZIIMay
~
~May

Total sales

COM¬

Other

Other transactions initiated off the floor—
Total

10,663,640

6,566,530

the floor—

sales
tales

6,461,170

216,040
5,670,510

May

purchases

Other

347,920

May

sales

Short

353,110

—IMay

Total sales
Total

297,810
6,268.720

—May

sales

PERSONAL INCOME IN THE UNITED STATES
(DEPARTMENT OF COMMERCE)—Month

sales

Other

$29,530,000

20,091

May 16

sales

Customers'

26,428

630,331

$28,504,790

May 16

sales

Customers'

May 16
May 16

shares—Total

DEPT.

COTTON SPINNING (DEPT. OF
COMMERCE):
Spinning spindles in place on May 2_
Spinning spindles active on May 2

MOTOR

May
:

other

Total

1,744,000

$31,082,000

1,175,414
active

Nondurable

Customers'

—

Durable

short sales

Number

4,250,000

1,387,000

$27,520,000

consuming establishments as of May
public storage as of May 2—
Linters—Consumed month of April—

360,887

Customers'

Round-lot

3,853,000

1,765,000

483,436

Mav ^9

orders

Dollar value

TOTAL

7,050,000

3,506,000

Hourly earnings—

Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales—;

Number

liabilities.

LINTERS

Nondurable

INDEX—

100

3.58

3.60

3.44

May 23
May 23

period

REPORTER

by dealers

Round-lot

$12,633,000

3,553,000
10,423,000

3,748,000

liabilities

COMMISSION:

Odd-lot sales

Number

$12,213,000

2,925,000

-May 23
—May 23

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT
OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE

Number

780

8,497,000

ASSOCIATION:

Percentage

Number

739

3.20

June 2

INDEX

Production

PAINT AND
1949 AVERAGE

3.49
..

June 2

(tons)—
(tons)

OIL,

3.34

June 2

received

orders

3.82

—June

Group—

Group

NATIONAL PAPEEBOARD

Unfilled

$10,585,000

liabilities

FABRICATED

U. 8. Government Bonds

Orders

MERCE—RUNNING BALES:
Lint—Consumed month of April

98.56

June

Baa

MOODY'S

375

693

114.46

—

COTTON

110.15

June

corporate——

Industrials

number

liabilities

24.200c

_____May 27

—

Aaa

171

361

liabilities

Total

29.700c

May 27

MOODY'S BOND PRICES DAILY AVERAGES:
U. 8. Government Bonds

Average

154

service

Construction

$42.00

May 27

York)

(New York)

MOODY'S

140

344

number

Commercial

Export refinery at

Public

BRADSTREET,

April:

copper—

Bead

Average

Retail

QUOTATIONS):

Domestic refinery at
Straits

number

Wholesale

$52.77

(per gross ton)

METAL PRICES

53,123,323

362,343,136

number

Total

4.131c

May 26

—

$415,466,459

42,546,378

425,586,650

number

Manufacturing

(per gross ton)

(per

$468,133,028

50,678,096
479,296,318

City.

FAILURES—DUN &

Commercial

IRON AGE COMPOSITE PRICES:
Finished

14,389,885

64,662,004

—

Pig iron

16,186,678

$529,974,414

States-.

York

Construction

23,473,164

118,082,185

City

Wholesale

105

78,883,60S
69,327,616
„

78,549,857

—

United

New

INC.—Month

Retail

(in 000 kwh.)

26,885,750

16,933,654
^

York

BUSINESS

EDISON ELECTRIC INSTITUTE:

Electric output

89,811,374
40,631,732

Manufacturing
May 23

40,096,944

89,989,389
74,761,195

8,871,000

RESERVE

100

89,934,949

40,081,079

131,953,233
;

79,820,352

56,063,620

—

Total
New

786,000

139,300

$34,698,291

96,869,051

Central

Outside

(tons)-,

$22,326,400

oocf

Central

Pacific

MINES):

—May 23

Pennsylvania anthracite
Beehive

DEPARTMENT

DUN

Mountain

133,465,000

7,694, ooo

238,409,

CITIES—Month

Central

120,186,000

40,183,000

May 2a

—

municipal

{8,018,000

13,534, 000
t

174,348,000

May 28

and

—

13,455,000
240,042,000

1,610,000

VALUATION

INC.—215

14,156,000

Atlantic

East
South

$291,296,000
153,844,000
137,452,000

15, ooo

15,817, 000

export

—May 28

—

Private construction

Public construction

PERMIT

West

construction

000

25,000
16,400,000

255,565,000

and

Atlantic

South

NEWS-RECORD:

Total

(barrels)——

England

Middle

freight loaded

freight received from connections

18,709,

39,000

20,320,000

April:

New

RAILROADS:

Revenue
Revenue

216,752, ooo
198,028, 000

18,408,000

„;

(barrels)

imports

BRADSTREET,

40,629,000

BUILDING

202,169,000
183,736,000

20,202,000

$21,111,893

1^5,415,000

22,540,000

May 23

AMERICAN

(barrels)

imports

consumption domestic
(barrels)
1
Increase all stocks (barrels)

157,990,000
19,433,000

222,699,000
202,458,000

(barrels)

Indicated

(strike)

May 23

output

products

153,923,000

(bbls.) at
(bbls.) at

oil

■.

oil

gasoline

oil

Refined

(bbls.)
—May 23
output (bbls.)
May 23
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
May 23
Kerosene (bbls.) at
-May 23
fuel

Residual

Ago

production (barrels of 42 gal¬

crude

output

Crude

23,159,000

Year

Month

INSTITUTE—Month

each)

Natural

6.278,300

March:

Domestic

May 23

(bbls.)

average

(bbls.)

Kerosene output (bbls.)
Distillate fuel oil output

PETROLEUM

Total domestic

804,000

of
May 23

of that date:

are as

Month

Ago

100.2

♦2,262,000

of quotations,

cases

either for the

are

Latest

lons

output—daily average

Dates shown in first column

Year

Asro

*100.3

production and other figures for the

cover

that date, or, in

INSTITUTE:

each)

output

(net tons)

condensate

Crude runs to

month available.

month ended

•

AMERICAN PETROLEUM

oil

June

to—

ingots and castings

Crude

Week

(percent of capacity)

latest week
week

Latest

Indicated

The following statistical tabulations

286-

305

216

310

206

177
-

[Volume 177

Number 5226.;. The Commercial and Financial Chronicle

(2441)

* INDICATES

Now in
Aberdeen Idaho Mining Co., Wallace, Idaho

•

March 30 (letter of notification) 100,000 shares of non¬
assessable
Proceeds

stock. Price

common

—

cents

per

share.

To develop mining claims. Underwriter

ACF-Brill Motors Co., Philadelphia, Pa.
April 20 filed 215,360 shares of common stock (par $2.50)
and 44,303.5 common stock subscription warrants. Price
—At prices not less than 50 cents per share of stock and
25 cents per warrant below current market. Proceeds—
!To Allen & Co., New York. Underwriter—None.

(letter of notification) 3,000 shares of

(about $2 to $2Vz

common

share).

per

Proceeds—To Nash S. Eldridge, the selling stockholder.
Office—464-72 East 99th St., Brooklyn 12, N. Y. Under¬

writer—Eisele & King, Libaire, Stout & Co., New York.
Acteon Gold Mines Ltd., Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par).
Price—$1 per share (net to company). Proceeds — To
purchase equipment and supplies. Underwriter—M. H. B.
[Weikel, Los Angeles, Calif.
Allied Wheel Products,

Inc., Toledo, Ohio
(letter of notification) 869 shares of common
(no par) to be offered for subscription by common

June

stock

stockholders at rate of three

new

the

basis

one

share for

new

each

American Gas & Electric Co.

shares for each four

to 11

Bids

• Arkansas Fuel Oil
Corp., Shreveporf, La.
May 1 filed $22,520,000 of sinking fund debentures due
1973 to be offered at rate of $10.60 principal amount
of debentures in exchange for each share of 6% cumu?-

stock (par $5).

lative

preferred stock (par $10) of Arkansas Natural
Corp. In lieu thereof, preferred stockholders may
elect to take cash. Proceeds—To retire said preferred

Gas

—

stock.

York 8, N. Y.

Under¬

banks.

Underwriter—None.

Arkansas Louisiana Gas Co.

Applied Science Corp. of Princeton (6/11)
May 21 filed $750,000 of 6% guaranteed sinking fund 10year debenture notes due April 30, 1963, of this company
and 75,000

shares of

stock

common

(par

one

cent)

April 22 filed $35,000,000 of first mortgage bonds dim
1978. Proceeds—To repay $24,500,000 bank loans and £0*

construction, etc. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬

new

Bradco, Inc., to be offered in units of $100 of notes and

the

art & Co.

remainder

Price—$105

bank

repay

unit.

per

Inc.; The First Boston Corp. and Lazard Frere*
(jointly); Union Securities Corp.; Smith, Barney
Equitable Securities Corp. Bids — Received 01m ~
May 25 at 70 Pine St., New York, N. Y., were rejected..
The first group mentioned bid 101.4011 for an interest
rate of 5% and a syndicate headed by Smith, Barney &
Co. bid 100.0788 for an interest rate of 5%%.

loans

Proceeds'—For

for

and

& Co.

& Co.;

working

NEW ISSUE CALENDAR

•

Arkansas Power & Light Co.

May
June 5, 1953

Westerly Automatic Telephone Co.—Common

Aviation Equipment Corp
(Union

Corp.)

June

Brandywine Raceway Association,
Inc.

Debs. & Stock

(Laird Securities

Co., Inc.; Laird, Bissell &
Harrison & Co.)
$1,920,000

and

(Offering to stockholders—no underwriting)

Debs. & Stock

Securities

Meeds;

Applied Science Corp...

Mines, Ltd

(George D. Clarke,

Ltd.)

$625,000

Beryllium Corp.
(Offering

Common

stockholders—underwritten by
duPont & Co.)
88,385 shares

Edgar Brothers
D.

(Allen &

Common

Francis

_____—__>-___Common

Heat-O-Matic, Inc.

Oil

Co. (Honolulu)

10:30

(Bids

11:30

Hall

Co.

Inc.)

EDT)

a.m.

June

Bonds

$20,000,000

$7,000,000

16, 1953

•

Common

(Offering to stockholders—underwritten by
Barney & Co.) 45,254 shares

$1,955,050

Maryland Casualty Co
June

9, 1953

(Merrill Lynch,

American Gas & Electric Co
(Bids 11 a.m. EDT)

Consolidated

Common

of Baltimore
Decca

11:30

a.m.

EDT)

$25,000,000

Records, Inc

Common

(Offering to stockholders—underwritten by Reynolds & Co.
and Laurence M. Marks & Co.) 318,625 shares
(Bids

EDT)

a.m.

(The

New

(Bids

Nagler Helicopter Co., Inc..—.
Boland)

Common

$299,000

New Jersey Power & Light Co
(Bids

EDT)

a.m.

(Bids

170.000 shares

(Fulton,

Common

EDT)

$3,150,000

CDT)

$1,170,000

Common

(Bids

—Preferred

Reid

Co.)

$1,250,000

record

noon

EDT)

$3,000,000

Monterey Oil Co...!
;t
*

New
•

—Common

.....

(Lehman Brothers)' 378,273 shares

Preferred

Common

noon

Pittston

Gulf States Utilities Co.

;

June 24,
United
(Offering

Gas
to

...Bonds

1 '(Bids 1La.m. EDT) $35,000,000

.Preferred

j^^stpckholders^t^o underwriting)

Common

—

(Bids 11 a.m. (EDT) about $$6,000,000
New York Telephone Co..
,

EDT) 828,516 shares

_______

Of ferii^

—Class B

—

June 23, 1953

England Electric System.

rate of

one

new

share for each sLs

(with an oversubscription privilege); rights#
expire July 1. Price—To be supplied by amendment.
Proceeds—For construction program.
Underwriter —
Smith, Barney & Co., New York.

(Offering to stockholders—no underwriting)

-Equip. Trust Ctfs.

v(Offering to stockholders—4>ids

.■

Rogers Corp

$18,000,000

Chesapeake & Ohio Ry
(Bids

...—Bonds

June

shares held

(Reynolds & Co.) $4,000,000

EDT)

a.m.

(6/5)

Bangor Hydro-Electric Co., Bangor, Me. (6/16)'
May 26 filed 45,254 shares of common stock (par $15) to
be offered for subscription by common stockholders odt

1953

...

Robertshaw-Fulton Controls Co.....

10, 1953

Arkansas Power & Light Co.—

1964; 8,000 shares of 6% preferred stock (par $50J$
depositary receipts representing 8,000 shares of com¬
mon stock
(par $1) to be offered in units of a $1,060
debenture, eight sha^s of preferred stock and depositary ^
receipts representing eight shares of common stock. Frfao
$1,550 per unit. Proceeds—From sale of securities, to«
gether with $4,000,000 to be borrowed from bank, to a©*»
quire airplanes and equipment and for working capital*
Underwriter—Union Securities Corp., New York.

June 22,1953

(Offering to stockholders—Blyth & Co., Inc.) 800,000 shares

June

; ;

and

18, 1953

June 19,
Erie Resistor Corp

$40,000,000

San Diego Gas & Electric Co.—

•

(Gearhart & Otis, Inc.) 1,000,000 shares

Bonds
Debentures

noon

■.

Aviation Equipment Corp.

due

Equip. Trust Ctfs.
(Bids

(6/8-9)

April 17 filed $1,000,000 of 6% subordinated debentures
Common

Corp.)

Omaha Ry.

$5,500,000

CDT)

a.m.

Dickson & Co.)

U. S. Airlines, Inc.—
,

Northern Natural Gas Co..

•

Chicago, St. Paul, Minneapolis &

(Watling, Lerchen & Co. and First of Michigan Corp.) $3,000,000
R.

noon

June

Manufacturers National Bank of Detroit—Common

(John

Boston

Common
7,350

Kraus)

York*

Light Co..

First

Ltd.

Common

York, Chicago & St. Louis RR._—Eq. Tr. Ctfs,

$7,000,000

Lamson & Sessions Co.
Burge

17, 1953

Corp. and R.
999,216 shares

Kansas Power &

Uranium Mines,

nium Co., Ltd. Price — $1.25 per share. Proceeds — Fen?
engineering, development and mining expenses. Under¬
writer—George D. Clarke, Ltd., 50 Broad Street, New

217,000 shares

Co..

(Equitable Securities

Bonds

Gulf Power Co

(Ball,

'•

Bonds

;

(Bids

June
Gulf Life Insurance

Athabasca

April 17 filed 500,000 shares of common stock (par 10
cents).
Formerly known as American-Canadian..Ura¬

Smith,

-—Common

Pierce, Fenner & Beane)

800,000 Shares

Gas, Electric Light & Power Co.

Bonds

....

Bangor Hydro-Electric Co

Western Light & Telephone Co., Inc.„___Preferred
(Harris.

EST)

a.m.

Washington Gas Light Co

Common
200,000 shares

March 31 filed

$300,000

Corp.)

of first mortgage bonds duo
Proceeds—To repay bank loans and for new con¬

Armstrong Rubber Co.
$4,000,000 of 5% convertible subordinate*!
debentures due May 1, 1973. Price—To be supplied by
amendment. Proceeds—For working capital. BusinessManufacturer of tires and tubes. Underwriter—Reynold*#
& Co., New York. Offering—Temporarily postponed.

Common

Securities

Michigan Consolidated Gas Co.—

.Common

stockholders—no underwriting)

Corp......

(Offering to stockholders—no underwriting)
(Offering

500,000

June 15, 1953
KLB

(Aetna

(Offering to stockholders—underwritten by
Lomasney & Co. and Courts & Co.) 100,000 shares

Mutual Telephone

Debentures

$150,000,000

Common

Co.)

(6/10)

$18,000,000

—

—Notes & Stock

Johnston Oil & Gas Co.

7 filed

struction.
Underwriter
To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart fit
Co. Inc.; Lehman Brothers and Stone & Webster Se¬
curities Corp. (jointly); The First Boston Corp.; Whiter
Weld & Co.; Equitable Securities Corp. and Central Re¬
public Co. (jointly); Merrill Lynch, Pierce, Fenner fir
Beane and Union Securities Corp. (jointly). Bids—To
be received up to 11 a.m. (EDT) on June 10 at Two Rec¬
tor Street, New York, N. Y.
:

(C. K. Pistell & Co., Inc.) $787,500

(Morgan Stanley & Co.)

Athabasca Uranium

1983.

$233,325

11, 1953

General Motors Acceptance Corp

June 8, 1953

Halsey, Stuart & Co. Ine£

Tulsa, Okla.

10 shares of stock.

Toledo,

To be determined by competitive

ly); Equitable Securities Corp.; Smith, Barney & C04
Blyth & Co., Inc. Bids—No bids received on June 2; sub¬
sequently directors decided to borrow $23,000,000 from

acquisition of stock of two companies, who will borrow

Broadway,

—

Probable bidders:

★ American Petroleum Exploration Co., Tulsa, Okla.
June 1 (letter of notification) 30,000 shares of preferred
stock.
Price—$10 per share. Proceeds—For operating
capital. Office — c/o Jack George, 215 West Fairview,

ing

Office—27
writer—None.

Underwriter

bidding.

The First Boston Corp. and Lazard Freres & Co. (joint¬

shares held. Price—$75 per share. Proceeds—For work¬

capital.

Inc., Newark, N. J.

—

Tentatively scheduled to be received
(EDT) on June 9 at 30 Church St., New

a.m.

New

writer—Gearhart & Otis, Inc., New York.

Proceeds—To be invested in operating subsidiaries. Un¬
derwriters—To be determined by competitive bidding.

(jointly).

ISSUE

March 27 (letter of notification) 40,000 shares of class A
common stock (par 1 cent).
Price — 50 cents per shapes.
Proceeds
To Delbert E. Reploge, President.
Under¬

(6/9)

common

REVISED

Arcturus Electronics,

four

held; rights to expire June 17. Price — $40 per
share. Proceeds—For working capital. Office—St. Louis,
Mo. Underwriter — Kidder, Peabody & Co., New York.

May 13 filed 800,000 shares of

ITEMS

York.

Probable bidders: First Boston Corp.; Union Securities
Corp.; Blyth & Co., Inc., and Goldman, Sachs & Co.

Acryvin Corp. of America, Inc.
stock. Price—At market

C. K. Pistell & Co., Inc.,

Underwriter

capital.

[Wallace Brokerage Co., Wallace, Idaho.

May 7

American Automobile Insurance Co.

May 13 filed 125,000 shares of capital stock (par $4)
being offered for subscription by stockholders of record
June

ADDITIONS

SINCE
•

1953

Continued
..—..Common

Corp....——

stockholders—no

^ Bergen Daily Bulletin, Inc.
May 21 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
To buy equipment and for working capital. Office •—
Palisades Park, N. J. Underwriter—McLaughlin, Reussf
& Co., New York.
.
.

underwriting)

page

about $20,000,000

York County Gas Co——..Common
(Offering to stockholders—no underwriting) $240,000

June 29,

1953
........Common

"Gas Service Co..
(Bids to be invited)

June 30, 1953

Through the Chicago Tribune aione,

you can reach most effectively
botlv investment markets: in Chicago and the midwest
—professional, buyers and the general, investing public.

and

at one cost

The Tribune is the first choice of the'

people who are the backbone
of investment buying in this important market. It is the leading
business and financial publication of this multibillion dollar market.
.For facts that show.howyou can gei mote from your advertising,
call your agency or a Tribune representative.

1,500,000 shares <

Pennsylvania Electric Co.—-j.!——Bonds
(Bids

a,m.

EDT) $12,500,000

(Bids 3 p.m. EDT)

-Bonds

Commonwealth Edison Co..
$40,000,000

New York

Boston

Philadelphia

CHICAGO TRIBUNE

-a..'Aug;* 3, 1953
'*

Denver & Rio Orande Western RR-.Eqp.Tr.

The Tribune gives to each day's market tables and

given, them ht America.

July 8, 1953
(Bids to be invited)

.Pfd. & Common

Seeck & Kade, Inc

(Bid® to be. Invited>

: ^

Ctfs.

Pittsburgh

San Francisco

Private Wires to all offices

Chicago

Cleveland

The Commercial and Financial Chronicle.

(2442)

Continued from page

Price

ital.

Beryllium Corp., Reading, Pa. (6/8)
88,385 shares of common stock (no par),
to be offered for subscription by common stockholders
of record June 5 on the basis of one new share for each
held

(with

Proceeds—For

amendment.

modernization and expan¬

Business—Produces beryllium alloys. Un¬
New York.

• Betty Mining Corp., Morgantown, W. Va.
(letter of notification) 500,000 shares of common
stock (par 10 cents). Price—60 cents per share. Proceeds
—For working capital.
Office — 1435 University Ave.,

stock

devices. Underwriter—None,

writers—Applied Science Corp. of Princeton (Baltimore,
Md.) and C. K. Pistell & Co., Inc., Jersey City, N. J.
Brandywine Raceway Association, Inc.,

Wilmington, Del. (6/5)
May 14 filed $1,600,000 of 6% debentures due June 1,
1978 and 160,000 shares of capital stock (par $1) to be
offered in units of one $500 debenture and 50 shares of
stock.
and for

Price—$600 per unit. Proceeds—To repay debt
working capital. Underwriters—Laird Securities

Co., Inc., and Laird, Bissell & Meeds, both of Wilming¬
ton, Del.; and Harrison & Co., Philadelphia, Pa.
Bristol

Oils

Ltd., Toronto, Canada

Sept. 25 filed 1,000,000 shares of

•

common

writer—None. To be named by amendment.

C.l.T. Financial Corp.,
be

supplied

stock

Co. and for

working capital.

dividend preferred

stock. Price—At

first

be offered

stockholders

at rate

one

for each 32 shares of stock held. Proceeds—To

31,500 additional

shares of

rights to

$15 per share. Proceeds

—

Office

—

For

—

Long Branch Ave., Long

Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien 4V2% bonds
$40,000 annually from 1955 to 1994, inclusive.
Price—At 100% of principal amount. Proceeds—To con¬
struct

Underwriter—None.

warehouse.

new

Loan Co. of

Federal

Pittsfield, Inc.

May 8 (letter of notification) 19,638 shares of 7% cumu¬

purchase

lative convertible

stock of Arex In¬

common

by stock¬

l-for-10 basis;

to mature

$1.50

Branch, N. J. Underwriter—None.

($25 per share)

par

ir Erie Resistor Corp., Erie, Pa. (6/19)
May 29 filed 62,500 shares of convertible preferred stock.
Price—At par ($20 per share). Proceeds—To purchase
machinery and equipment and for working capital.
Underwriter—Fulton, Reid & Co., Cleveland, O.

working capital. Underwriters—Dillon, Read & Co. Inc.;
Kuhn, Loeb & Co.; and Lehman Brothers, all of New
York. Offering—Temporarily postponed.

ic Citizens Casualty Co. of New York
May 29 (letter of notification) 8,000 shares

June

record

expire July 1. Price

Proceeds—For

amendment.

to be offered for subscription

(par $1)

holders of

New York

Associates, Inc.
10,000 shares of common

May 11 (letter of notification)

shares of

preferred stock
stock

(par $11)

and

19,638

being offered first to
participating preferred stock of record May
15, in units of one preferred and one common share;
Code Products Corp., Philadelphia, Pa. ,.
?
rights to expire on June 10. Price—$15 per unit ($15.50
to public). Proceeds—For working capital. Underwriters
April 20 filed (amendment) 500,000 shares of 6% cu¬
mulative preferred stock (par $1) and 250,000 shares of
—Simon, Strauss & Himme, New York; William N. Pope,
common
stock (no par) to be offered in units, oi two
.-Inc., Syracuse, N. Y., and Chace, Whiteside, West &
shares of preferred stock and one share of cqjmmou
>Winslow, Inc., Boston, Mass.
*^"r"
stock. Price—$3 per unit. Proceeds—For working, capi¬
• Financial Credit
Corp., New-York'"
tal. Underwriter—Frank M. Cryan & Co., New vYork.
May 8 (letter of notification) 150,000 shares of 7% cumu¬
Statement effective about Feb. 13.
lative-preferred stock. Price — At par ($2 per share).
Consolidated Gas, Electric Light & Power Co/' *
Proceeds
For working capital.
Underwriter — E. J.
Of Baltimore (6/9)
Fountain & Co., Inc., New York, N. Y. Letter has been
withdrawn.
May 8 filed $25,000,000 of first refunding mortgage
bonds, series Y, due June 1, 1983. Proceeds—To finance
Fischer's Flavor Seal, Inc., Spokane, Wash.
demnity Co. at $6

share. Office—116 John St., New
York 38, N. Y. Underwriter—None.
per

common

(par $1)

holders of

—

Brooks & Perkins,

Inc., Detroit, Mich.
April 22 (letter of notification) 6,475 shares of commoL
stock (par $1). Price—$6 per share. Proceeds—To un¬
derwriter. Watling. Lerchen & Co., Detroit. Mich.

Bunday's Water Co., Linesville, Pa.
May 8 (letter of notification) $35,000 of 20-year 5% re¬
funding mortgage bonds dated July 1, 1953. Price—At
par (in denominations of $100 and $500). Proceeds—To
redeem first mortgage bonds, to repay bills payable and
Pittsburgh, Pa.

Cabot

Co., New York and Atlanta, Ga.

Electronic

May 15 filed $50,000,000 of debentures due June 1, 1967.
Price—To

Courts &

and

Godfrey

repay

stock (par $1)
Price—Approximately 64.48 cents per share. Proceeds—
To acquire leases and for corporate purposes.
Under-

fior. capital improvements.

note

Proceeds

$279,500 term loan debt and for working
capital. Underwriter—D. A. Lomasney & Co., New York;

curities, Inc., Baltimore, Md. and New York, N. Y.

to
•

—To

phyll derivatives to the pharmaceutical, drug, cosmetic,
and food processing trades. Underwriter—Mitchell Se¬

equipment and expansion and raw materials. Office—
222 Flint Bldg., Auburn, N. Y. Business—Manufactures
and distributes portable fire escapes, fire alarm and

I tic*
May 25 (letter of notification) 100,000 shares of common
stock (par 1 cent). Price—50 cents per share. Business
—Manufacturer of special lubricating grease.
Under¬

79,000

$7.45 per share; and to public, $8.50 per share.

general
Offices—1305 West 105th St., Chi¬

payment of other obligations and working capital. Busi¬
ness—Manufacture and sale of chlorophyll and chloro¬

—

m 1*3€§COy

$30,000

repay

than
shares to be offered to certain em¬
Stockholders have waived rights to purchase
shares.
Price—To stockholders and employees,

ployees.

(par 10 cents). Price—$1 per share. Proceeds—To

stock

share for each share held; not more

5,000 unsubscribed

111. Underwriter—None.

cago,

Edgar Brothers Co., Metuchen, N. J. (6/8-9)
15 filed 100,000 shares of common stock (par $1)
subscription by stockholders at rate of

to be offered for

jc Chlorophyll Chemical Corp., New York
May 28 (letter of notification) 300,000 shares of common

^ Blaze-Master, Inc.
May 25 (letter of notification) 50,000 shares of class A
stock. Price
At par ($1 per share). Proceeds — For

other safety

•

May

(letter of notification) 6,112 shares of common
to be offered for subscription of em¬
purposes.

Proceeds—

preferred stock and for working capital.

Fourth

Ave., Moline, 111. Underwriter—
Harry Hall Co., Safety Bldg., Rock Island, 111.

(par $20)

corporate

Oklahoma City, Okla.,
and Oil & Gas Co., Madison, N. J.
May 1 filed 359 working interests in oil and gas leasei
to be offered for sale "as a speculation." Price—$1,392.75

development

Office—2519

ployees. Price—$49.08 per share. Proceeds—For

Underwriter—None.

Price—At par ($10 per share).

To redeem first

two-thirds of

May 11

Blackwood & Nichols Co.,

working interest.
Proceeds—For
oil and gas leases. Underwriter—None.

ferred stock.

Chicago Bridge & Iron Co.

June 1

per

Office—Hartford

May 21 (letter of notification) 25,000 shares of*6% pre¬

—

York.

derwriter—Francis I. du Pont & Co.,

Morgantown, W. Va.

share. Proceeds

it Cheyenne Oil Ventures, Inc., Denver, Colo.
1 (letter of notification) 150,000 shares of common
stock (par one cent). Price—24 cents per share. Proceeds
—For working capital. Office—702-4 Ernest & Cranmer
Bldg., Denver 2, Colo. Underwriter—Tellier & Co., New

oversubscription privilege);
Price—To be supplied by

Eagle Super Markets, Inc., Moline, III.

expire on June 15.
For working cap¬
Road, Manchester, Conn. Business
rights to

held;

now

per

June

rights to expire on June 18.
sion program.

ten

$11

—

—Manufactures and sells textiles. Underwriter—None.

May 15 filed

four

each

for

Thursday, June 4, 1953

Underwriter—Graham & Co..

expansion program. Underwriters — To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co.

Inc.; The First Boston Corp. and White, Weld
& Co. (jointly); Harriman Ripley & Co. Inc. and Alex.
Brown & Sons
(jointly). Bids—To be received up to
11:30 a.m.
(EDT) on June 9 at company's office in

(letter of notification)

May 19

Price—At

stock.
■t

working

capital.

par

4,000 shares of

share).

per

Business—Makes

cessing fresh meat.
Wash.

($10

common

Proceeds—For

formula

for

pro¬

Office—726 Paulsen Bldg., Spokane.

Underwriter—R. L. Emacio &

Co., Inc., Spokane,

Wash.

Baltimore, Md.

Fort Myers Beach Water Works, Inc.
Cooperative Grange League Federation
May 21 (letter of notification) $298,000 of 5V2% first
Exchange, Inc.
mortgage bonds due May 1, 1968 and 2,980 shares of
Feb, 13 filed 50,000 shares of 4% cumulative preferred
common stock
(par $1) to be sold in units of one $1,000
stock (par $100) and *700,000--shares of common stock
bond and 10 shares of stock. Price—$985 per unit.
Pro¬
(par $5). Price—At par. Proceeds—Fdr working capital
ceeds—For working capital/ Business—Water distribu¬
Business—Production of dairy and poultry feeds.—Office
tion system. Underwriter—Goodbody & Co., St. Peters—Ithaca, N. Y. Underwriter—None.
bufg;*F-?n^.,..
'•
-

Byrd Oil Corp., Dallas, Tax.
Oct. 22 filed $1,750,000 of 10-year 5V2 % convertible sink¬

ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at the rate of
$100 of bonds for each 28 shares of stock held (for a
14-day standby). Certain stockholders have waived their
rights. Price—At par. Proceeds—To repay $1,014,500 of

outstanding notes and for drilling expenses and working
capital. Underwriters—Dallas'Rupe & Son, Dallas, Tex.;
C&fl M. Loeb, Rhoades & Co., New
Yfirk; and Straus,
Blosser & McDowell,
Chicago, 111. Offering—Postponed.
Carolina Casualty Insurance
Co., Burlington, N. C.

April 29
B

(letter of notification)

non-voting

103,506 shares of class

stock

(par $1) being offered to
stockholders of record April 17 at rate of one new share
common

for each five shares

held; rights to expire July 17. Price
—$2 per share. Proceeds—To increase capital and sur¬
plus. Office—262 Morehead St., Burlington, N. C. Un¬
derwriter—None.
Cascade

Jan. 23

(letter of notification) 299,970 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
acquire leases, for exploration expenses, to repay
loans and for working capital.
Office—100 West 10th
St., Wilmington, Del. Underwriter—Charles J. Maggio.
Inc., New York. Letter to be withdrawn.
To

ic Corpus Christi Refining Co.
June

Natural Gas

shares of 8% cumulative convertible
preferred stock (par
$5) and common stock (par $5) of Northwest Cities Gas
Co. on a l-for-51/^
basis, plus 25 cents in cash. Price—

share. Proceeds
To acquire aforementioned
Underwriter—Sheridan Bogan Paul & Co., Phila¬
delphia, Pa.
per

—

^ Cedar Island Citizens Cooperative Association '
May 29 (letter of notification) 400 shares of common
of real

Price—$10
estate

Washington

per

located

Bldg.,

share.
at

Proceeds—For

Cedar

Washington,

Island, Va.
D.

promotion

Office—410

Underwriter—

filed

stock

970,000 shares of common
which 820,000 shares are to

(par

ing

capital,

etc.

Underwriter—Vickers

will

receive warrants

Latter

maining 150,000

common

Underwriter—Weber, Millican Co., New York.
Decca Records, Inc.

May 19 filed 318,625 shares of capital stock (par 50
cents), to be offered for subscription by stockholders of
June

record

rate

one

held; rights to expire

new

June 25.

for

each

—

•

Cheney Brothers, Manchester, Conn.

May 8

(letter of notification) 23,872 shares of common
(no par) to be offered for
subscription by common
stockholders of record May 1 at rate of one
new share

stock

Proceeds—For investment.
Service

basis

unsubscribed

for

subscription by

one

new

stock

share
be

for

offered

common

each

six

common

stock

Empire

and

Fuel

Co.,

another

sub¬

Dynamics Corp.
(par $3).

Consolidated

Vultee Aircraft
Corp.
UnderwriterBrothers, New York, to handle U. S. sales of
shares, while Greenshields & Co., Inc., will handle Cana¬
dian distribution of a portion of the offering. Offering
—Temporarily postponed.
/

Instrument Corp.

and

employees of the company. Price—Op¬
at
$9.50 per share.
Proceeds—For
working capital.
exercisable

General

financing in 1951; Allen

May

July

Motors Acceptance

filed
1958.

$150,000,000
Price — To

Corp. (6/11)
of five-year debentures due
be supplied by amendment

Proceeds—For
common

(par

$10) being offered first to stockholders of
April 1 at rate of one share for each 6*4 shares
held; rights to expire May 25. Price—$25 per share. Pro¬
record

working capital.

Lehman

tions

i.-

ceeds—For

Gas

supplied by amendment. Proceeds—To re¬
bank loans made to acquire a block of 400,000 shares

executives

em¬

Dixie Fire &

stock

stock (par $10).

May 7 filed 57,800 shares of common stock (par $1), issu¬
able upon exercise of certain options held by certain

held;

& Co. in .1949.

April 9

common

by Cities Service Co. to increase

Casualty Co., Greer, S. C.
(letter of notification) 8,000 shares of

used

12 filed 250,000 shares *of common stock

General

(no par),
stockholders

Price—To be supplied by amendment. Proceeds
—To repay bank loans and for general corporate pur¬
poses.
Underwriter—To be named later.
White, Weld
& Co. underwrote

(6/29)

Bids—Tentatively planned for June 29.

General

pay

Price—To be

officers

Co.

bidding. Probable bidders: Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Smith, Barney & Co.; Stone
&
Webster
Securities
Corp. and Stern Bros. & Co.

May

Co., both of New York.

offered

una

Price—To be

supplied by amendment. Proceeds—For working capi¬
tal, etc.' Underwriters—Reynolds & Co. and Laurence

per

107 South

sidiary. Underwriters—To be determined by competitive

•

ployees.

III.

Gas

(jointly).

(6/9)

Derby Gas & Electric Corp.
May 14 filed 47,039 shares of common stock

common

market.

investment

M. Marks &

(par $5). Price—At market (approximately
$39.50
pqr share). Proceeds
To E. Carey, Jr., and W. D.
P.
Carey, the two selling stockholders. Underwriters—Bosworth, Sullivan & Co., Denver, Colo.

....

—

ir Gas Industries Fund, Inc., Boston, Mass.
May 27 filed 500,000 shares of common stock. Price—At

Proceeds—To

Dakota-Montana Oil Leaseholds, Inc., N. Y.
May 1 (letter of notification) 300,000 shares of common
stock (par 50 cents). Price—$1
per share. Proceeds—For
working capital. Office—535 Fifth Ave., New York, N. Y.

Office

Underwriter—W. L. Lyons Si

May 22 filed 1,500,000 shares of

re¬

shares.

Central City Milling &
Mining Corp.
March 4 (letter of
notification) 1,800,000 shares of com¬
mon stocks.
Price—At par (10 cents per
share). Proceeds
—For mining operations.
Underwriter—R. L. Hughes &
Co., Denver, Colo.

stock

St., Paducah, Ky.
Co., Louisville, Ky.

New

purchase the

Price—$12.50

For operating capital.

—

Fourth

Brothers,

None.

Central Fibre Products
Co., Inc., Quincy,
March 23 (letter of
notification) 2,400 shares of

Proceeds

offered

share of each class of stock.

one

(Texas)

the public. Price—$1.50 per share. Proceeds—For work¬

stocks.

stock.

cents),

Friendly Finance, Inc^sdt:o?h
May 21 (letter of notification) 21,400 shares of 6% pre-/
fererd stock (par $10) and 21,400 shares of class B non¬
voting common stock (par $1) to be offered in units of

stock

York.

Corp., Seattle, Wash.
March 30 (letter of
notification) 60,720 shares of com¬
mon stock (no
par) to be offered in exchange*for 11,400

$25

Coronadd Copper Mines Corp.

Underwriter—None.

Stanley
•

working capital.
& Co., New York.

General

Fublic

Utilities

Underwriter—Morgan

Corp.

(6/5)

May 6 filed 568,665 shares of common stock (par $5) to
be offered for subscription by common stockholders of
record June 2 at the rate of one new share for each 15

Number 5226... The Commercial and Financial Chronicle

Volume 177

shares held; rights to

expire on June 24. Price—$23.50
share. Proceeds—To reduce bank loans and for in¬

per

vestments

subsidiaries.

Underwriter—None.

Lynch, Pierce, Fenner & Beane will act

Merrill

clearing agent.

Government

Employees Corp.
May 1 (letter of notification) 12,000 shares of common
stock (par $5) being offered to common stockholders oi
record April 28 on the basis of one new share for each
five shares held; rights to expire on June 24. Price—
$15 per share. Proceeds-—For working capital. OfficeGovernment Employees Insurance Bldg., 14th" arid L Sts.,
N. W., Washington, D. C. Underwriter—None.
Grand Bahama Co., Ltd., Nassau
Feb. 3 filed $1,350,000 20-year 6% first mortgage convex»
tible debentures due March, 1973, and 1,565,000 sharti

of class A stock

(par 10 cents). Price—Par for deben¬
tures and $1 per share for stock. Proceeds — For nen
construction, Business — Hotel and land development
Underwriter—Gearhart & Otis, Inc., New York.

Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription by stockholders on the bash
of

one

new

share for each four shares held as of May 23,

rights to expire about June 17. Price—To be supplied
by amendment. Proceeds
For general corporate pur¬
poses. Underwriter—None.
Gulf Life Insurance Co.

(6/17)

R.^S. Dickson & Co., Charlotte, N. C.

Gulf Power Co.

1983

& Hutzler and Drexel & Co.

(jointly); Union Securitiei
Corp.; Lehman Brothers.
Bids—To be received up to 11 a.m. (EDT) on June 9 at
office of Southern Services, Inc., 20 Pine St., New York
Securities

5, N. Y.
Gulf States Utilities Co.

(6/23)
May 20 filed 350,000 shares of common stock (no par)
(to *be amended upon the acceptance of a bid for the
lowest number of whole shares as will yield
$6,000,000).
Proceeds—To

tion.

April 1 at the rate of 1 3/11 shares for each share held.
Price—$16.50 per share. Proceeds—To increase capital
and surplus. Underwriter—None.

retire bank loans

Underwriters

—

and for

To be determined

new

construc¬

by competitive

bidding. Probable bidders: Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane and Leh¬

stock.

(letter of notification)

2,500 shares of common

Price—At par ($10 per share). Proceeds — For
Address—P. O. Box 33, Grass Valley,

Calif.

Underwriter—None.

Israel Investors, Inc., New

—

York

April 24 filed 86,960 shares of

(no par),
to be sold in units of 10 shares each. Price—$1,150 per
unit payable in cash or no more than $1,000 in State of
Israel Independence Issue bonds and the balance in cash.
Proceeds—To aid economic development of Israel. Un¬
common

stock

derwriter—None.

it Mid American Oil & Gas Co., Chicago, III.
May 22 (letter of notification) 475,000 shares of com¬
mon stock (par 10 cents). Price—At the market (around
15 cents). Proceeds^-To G. W. Snyder and G. S. Olmstead, the two selling stockholders. - Underwriter —
Greenfield & Co., Inc., New Ydrk.

Johnston Oil & Gas Co. (6/11)
May 21 filed 500,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
pay indebtedness and for general corporate purposes.
Underwriter—Allen &

Co., New York.

(Kan.) Telephone Co.
March 3 (letter of notification) $206,000 of 4%% first
mortgage bonds, series A, due Feb. 1, 1977. Price—100%
and accrued interest.
Proceeds—For general corporate
purposes.
Underwriter—Wachob-Bender Corp., Omaha,

it Miller Chemical & Fertilizer Corp.
June 1 (letter of notification) $50,000 of 5% debenture
notes, series of 1953. Price—At face value (in denomina¬
tions of $100 and $1,000). Proceeds—For working capi¬
tal.
Office
2226 North Howard St., Baltimore, Md.
—

Underwriter—None.

(6/17)

it Mineral

May 25 filed 170,000 shares of common stock (par $8.75)
preferred stock (par $100). Price—
To be supplied by amendment. Proceeds—To repay bank
loans and for
Boston

new

construction.

Underwriter—The First

Monterey Oil Co., Los Angeles, Calif. (6/10)
May 21 filed 372,273 shares of common stock (par $1),
of which 110,000 shares are for account of company and
262,273 for account of selling stockholders. Price—To be
supplied by amendment. Proceeds — To reduce bank
loans. Underwriter—Lehman Brothers, New York.
•

ing capital. Office—Land Title Bldg., Philadelphia, Pa.
Underwriter—None.
• KLB Oil Corp., Wichita Falls, Tex.
(6/15)
May 25 (letter of notification) 120,000 shares of capital
stock (par one cent). Price—$2.50 per share. Proceeds—
For working capital, etc. Office—Wichita National Bank

* Montgomery

•

stockholders; $1.50 to public. Proceeds—To

pay

current

liabilities and for woriung capital. Address—Joseph F.
Carroll,, President, 2886 Glenmore Ave., Pittsburgh 16,

■

1,000 shares of 6%
cumulative preferred stock (par $25) and 125 shares of
common stock (par $10) being offered in units of
eight
shares of preferred and one share of common stock.
Price—$2Q0 per unit. Proceeds—To payment of-Sl 5,000
notes

and

purchase

additional

gas

equipments Under¬

writer—Mohawk Valley Investing Co., Inc.,

Uticai,; N. Y.

£ Humble Hill Gas & Oil Co., Inc. (Pa.)
f!
May 27. (letter of notification) 8,700 shares of Common
stock. Price—At par
($10 per share). Procefcjfc-^-For
drilling expenses. Address — P. O. Box,
lOl^North
Lansing Branch, Lansing, Mich. Underwriter—None.

• Hunter Creek Mining Co., Wallace, Idaho§ |
JUne 2 (letter of notification) 160,000 shares of coirimOn
stock.

Price—25

cents

share. Proceeds—For /bperBank St., Wallace, Itdaho.
Underwriter—JVtine Financing, Inc., Spokane, W£s$.
ating capital. Office

per

—

509

HydrocapEastern, Inc., Philadelphia, Pa. i| §
April 27 filed 500,000 shares of common stock, ^f*w|iich
underwriters have agreed to purchase 100,000 shared for
public sale and to use "best efforts" to sell remmfiing
shares; Price—At par ($1 per share). Proceeds—Totestablish assembly plant and acquire raw
materials^fUnderwriter—Barham & Co., Coral Gables, Fla.

employees of company and its subsidiaries." Price—
$37 per share. Proceeds—For working capital. Under¬
and

writer—None.

working capital.
York

Address—c/o John E. D.

GrunowJ

City. Underwriter—None.

International Harvester Co.,

Chicago, III.

(N. Y.

(6/9).

stock

(par one cent). Price—$1 per share. Proceeds—For working capital. Office—130 West 42nd St., New
York. Underwriter—John R.

Boland, New York.

Inc., Portland, Ore. ;
May 11 (letter of notification) 1,400 shares of 6% noncumulative preferred stock (par $100) and 1,400 shares
of common stock (no par) to be sold in units of one
share of each class of stock. Price—$101 per unit. Pro¬
ceeds
For working capital. Business—Credit service.
Office—Times Building, Portland 4, Ore.
Underwriter-^,^
National Credit Card,

—

New England Electric System (6/10)
May 4 filed 828,516 additional shares of common stock
(par $1) to be offered for subscription by common stock¬

None.

by company on June 8. Proceeds—For expansion pro¬
gram.
Underwriters—To be determined by competitive
bidding. Probable bidders: Blyth & Co., Inc., Lehman

Market Basket, Los

Angeles, Calif.

May 25 (letter of notification) 14,886 shares of common
stock (par 50 cents). Price—$11.50 per share. Proceeds
—For working capital. Office — 6014 S. Eastern Ave.,
Los Angeles,

Calif.

Business—Groceries.

Underwriter—

None.
•

Maryland Casualty Co., Baltimore, Md.

(6/16)

May 22 filed 217,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be

applied

towards payment of the redemption

unconverted

price of

shares of $1.05 convertible preferred stock

(190,380 shares as of May 15, 1953), which have been
for redemption July 6. Underwriter — Merrill

called

Lynch, Pierce, Fenner & Beane, New York.
McCarthy

(Glenn), Inc.

June 12 filed 10^000,000 shares of common stock

(par 25

exploratory wells, acquisition of leases and for general
corpprate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone

$1).
Proceeds—To pur¬
chase common stock of The Louden Machinery Cd. Busi¬
ness—Manufacture and sale of conveyors in industrial
and commercial applications. Office—Detroit, Mich. Un¬
derwriter—Kidder, Peabody & Co., New York. Offering
—Indefinitely postponed.
Price—To be supplied by amendment.

and its subsidiaries under Employees' Common

None.

Manheim, Pa.
May 5 (letter of notification) 2,000 shares *of common
stock .to be offered for subscription by common stock¬
holders of record April 14, on basis of two-thirds of a
share for each share held; rights to expire on May 26.
Price—At par ($25 per share). Proceeds—To pay, in
part, cost of new water filtration plant. Underwriter—

Mechanical Handling Systems, Inc.

<:f

None.

Underwriter—None.

Manheim Water Co.,

March 31 filed 120.000 shares of common stock (par

April 24 filed "68,000 shares of common stock (h®par)
being offered for subscription by certain employees of
company

record May 8 on a share-for-share basis "as a specula¬
Price—To be supplied by amendment. Proceeds—

WHitehall 3-2X81. Offering—Date indefinite.

Insurance Co. of North America, Phila., Pa
April 16 filed 30,000 shares of capital stock (par
be offered for sale to employees of company a
affiliated companies. Underwriter—None.
•

Wilmington, Del.

May 8 filed 600,000 shares of common stock (par 5 cents)
to be offered for subscription by common, stockholders of

cents). Price—$2 per share. Proceeds—For drilling of

it Idarado Mining Co., Ouray, Cold.
May 27 (letter of notification) 180,000 shares of co
stock (par $1). Price—$1.50 per share. Proceed

Co., Honolulu (6/8)
May 18 filed 200,000. shares of common stock to be offered for subscription by common stockholders of record
June 1, 1953 and to employees. Price—At par ($10 per
share). Proceeds—For expansion costs. Underwriter—

May 26 (letter of notification) 299,000 shares of common

May 22 filed 22,793 shares of common stock (par $5) to
be offered for subscription by "selected group of officers

expansion program.

•
,

Mutual Telephone

it Nagler Helicopter Co.,Inc.

Link-Belt Co., Chicago, III.

For

Household Service, Inc.
27 (letter of notification)

April

common

tion."

Pa. Underwriter—None.

St., Philadelphia 23, Pa. Business—Wholesale distribu¬
tion of food. Underwriter—None.

(par $10). Price—At market. Proceeds—To certain
selling stockholders. Underwriter—Ball, Burge & Kraus,
Cleveland,vO.~
.■•"•V".- *

Lone Star Sulphur Corp.,

(Pa.)

Co.

mulative preferred stock. Price—At par ($10 per share).
Proceeds—For working capital. Office—999 No. Second

Bldg., Wichita Falls, Tex. Underwriter—Aetna Securities
Corp., New York.

stockholders until June 30, 1953. Price—$1 per share to

(William)

May 28 (letter of notification) 25,000 shares of 6% cu-

it Leeds & Northrup Co.
May 29 trustees under the Deed of Trust for the Com¬
pany's Stock Trust Shares filed 4,248 Employees' Trust
Shares and 2,171 Participating Trust Shares.

Heat-O-Matic, Inc., Pittsburgh, Pa. (6/8)
May 22 (letter of notification) 20,000 shares of common
stock (par $3) to be offered for subscription by present

Inc.,

writer—None.

Keystone Helicopter Corp., Phila., Pa.
April 23 (letter of notification) 295,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share. Proceeds
—To purchase helicopter and equipment and for work¬

^Hartford Special Machinery Co.
1 (letter of notification) 7,500 shares of common
stock to be offered for subscription by present stock¬
holders. Price—At par ($20 per share). Proceeds—To
purchase equipment and for working capital. Office—
287 Homestead Ave,, Hartford, Conn.
Underwriter —
None.

Production,

May 29 (letter of notification) 500,000 shares of common
stock. Price—At par (10 cents per share). Proceeds—*
For expansion.
Address—Box 795, Boise, Ida. Under¬

Corp., New York.

it Lamson & Sessions Co., Kent, O. (6/9)
May 20 (letter of notification) 7,350 shares of

Exploration

Boise, Idaho

and 50,000 shares of

stock

Brothers

June

Michigan Consolidated Gas Co. (6/15)
May 15 filed $20,000,000 of first mortgage bonds due 1978,
Proceeds—From sale of bonds, plus proceeds from sale
of 215,000 shares of common stock (par $14) to American
Natural Gas Co., parent, for $3,010,000, to be used to
repay bank loans and for construction program. Under¬
writers
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Lehman Brothers (jointly); Smith, Barney &
Co. and Blyth & Co., Inc. (jointly); Harriman Ripley &
Co., Inc., and Union Securities Corp. (jointly). Bids—
To be received up to 10:30 a.m. (EST) on June 15 at 415
Clifford St., Detroit, Mich.

operating capital.

(jointly); Carl M. Loeb, Rhoades & Co.
Bids—To be received up to 11 a.m. (EDT) on June 23 at
Chase National Bank, 11 Broad St., New York, N. Y.
man

amendment.

it Iron Top Mine, Inc., Grass Valley, Calif.

Kansas Power & Light Co.

petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co.; The First Boston Corp..
Kidder, Peabody & Co. and White, Weld & Co. (jointly):
Merrill Lynch, Pierce, Fenner & Beane, Salomon Bros

•

one share of each
Price—$6 per unit. Proceeds—For work¬
ing capital. Business—Purchase, processing, refining pnd
sale of Fluorspar. Underwriter — To be supplied by

cents) to be offered in units of

class of stock.

Nebraska.

May 8 filed $7,000,000 first mortgage bonds due

Equitable

Bloomington, III.

March 26 filed 28,000 shares of capital stock (par $10)
to be offered for subscription by stockholders of record

(6/9)

Proceeds—To repay $4,000,000 of bank loans and for nev»
construction. Underwriters—To be determined by com¬

Corp.;

Interstate Fire & Casualty Co.,

Mex-American Minerals Corp., Granite City, III*
Nov. 3 filed 113,000 shares of 6% cumulative preferred
stock (par $5) and 113,000 shares of common stock (par

Junction City

May 27 filed 999,216 shares of common stock (par $2.50)
Price—To be supplied by amendment. Proceeds—To 4C
selling stockholders. Office—Jacksonville, Fla.
Under¬
writers—Equitable Securities Corp., Nashville, T|enn.;
and

Stock Subscription Plan of 1953. Price—$25 per share.
Proceeds—For general corporate purposes. Underwriter
—None.

June

(2443)

holders of record June 11

the basis of one new share

for each 10 shares held (with an oversubscription

privi¬

lege); rights to expire on June 25. Warrants are ex¬
pected to be mailed on June 11. Price — To be set

Brothers and Bear, Stearns & Co. (jointly); Merrill
Lynch. Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld & Co. (jointly). Bids—To be received
up to noon (EDT) on June 10 at 441 Stuart St., Boston
16, Mass.
New Jersey Power & Light Co. (6/9)
May 7 filed $5,500,000 of first mortgage bonds due 1983.
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriters—To be determined by competitive

Probable bidders: Halsey, Stuart & Co. Inc.;
Bros. & Hutzler; Union Securities Corp. and
White, Weld & Co. (jointly); The First Boston Corp.
and Kidder, Peabody & Co. (jointly); Carl M. Loeb,
Rhoades & Co.; Equitable Securities Corp.; Kuhn, Loeb
& Co.; Lehman Brothers and Goldman, Sachs 8c Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)
bidding.

Salomon

June 9.

•

New York Telephone Co.,

New York

(6/23)

May 22 filed $35,000,000 of refunding mortgage bonds,
series G, due July 1, 1984. Proceeds — To repay bank
loans. Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Ine.^L
Morgan Stanley & Co. Merrill Lynch, Pierce, Fenner &
Beane and Glore, Forgan & Co. (jointly); Kuhn, Loeb &
Co. Bids—To be received by company up to 11 a.m.

(EDT)

June 23. Stock Offering—Company also plans

Continued

page

The Commercial and Financial Chronicle

(2444)

Continued

from page 39

to issue and sell to

its

American Telephone & Telegraph Co.,

700,000

parent,

additional shares of common stock

Philadelphia Electric Co.
April 10 filed 100,000 shares of common stock (no par)
to be offered for subscription by employees of company
and its subsidiaries. Price—From 85% to 95% of the
then

(par $100).
North American Peat Moss Co.,

Inc.

April 10 filed 500,000 shares of common stock (par 10
cents). Price — $1 per share. Proceeds — To purchase
equipment and for working capital.
Keppler & Co., Inc., New York.

Underwriter—R. A.

for

common

Telephone Co.
June 1 (letter of notification) 2,000 shares of common
t?tock to be offered for subscription by common stock¬
holders of record June 1 at rate of one new share for
each four shares held. Price—At par ($25 per share).
)?roceeds
For equipment. Office — Saxonburg, Butler
County, Pa. Underwriter—None.
North Pittsburgh

each nine shares of stock held of record May 26;
to

expire

May

sinking fund

$40,000,000

filed

(6/9)

Natural Gas Co.

due

debentures

construc¬

Proceeds—To repay bank loans and for

X973.

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp. and Kid¬
der, Peabody & Co. (jointly). Bids—To be received up
to 10 a.m. (CDT) on June 9.
tion program.

stock

Ltd., Canada
JNov. 21 filed 1,000,000 shares of capital stock (par 200
Canadian)
and subscription warrants for 600,000
shares, which statement was amended May 20 to 200,000
shares and warrants to purchase 200,000 shares to be
offered in units of one share of stock and one warrant.

unit. Proceeds—For drilling of addi¬
to purchase producing wells. Under¬

Price—75 cents per

wells

tional

and

writer—M. S. Gerber, Inc., New York.

(6/10)

the basis of

one

preferred

mon

the basis of

$16

per

share.

Proceeds—To

new

construction.

Inc.,

New

York;
ington, D. C.
•

mon

share for each five shares held

May 27; rights to expire

(

$100)

(par

2,915% shares
shares of

8,875

and

par),

including

915%

reoffered

preferred

;

of pre¬
common

3,375

and

stockholders

stock

(par 10 cents). Price
For

—

stock of corporation issuable under

plan.

Socony-Vacuum Oil Co., Inc.
May 19 filed $15,000,000 of interest in company's em¬
ployees' savings plan and 375,000 shares of capital stock
purchaseable under the plan.

June 10. Price—

bank loans and for

repay

New

Co.,

Sinclair Oil Corp.
May 22 filed $10,500,000 of participations in employees
savings plan, together with 210,000 shares of no par com¬

Power Co.

new

one

—
25 cents per share/
operating capital. Office — 2403 So.
Tacoma Way, Tacoma, Wash. Underwriter—None.

April 30 filed 852,840 shares of common stock (par $10)
being offered for subscription by common stockholders
of record

(no

Proceeds

Undewriter—None.

Nielsen

June 2

—

Electric

—

i Silver Mountain Mining Co., Inc. •
(letter of notification) 1,000,000 shares of com-'

stock held (with an

common

Underwriter

who/ had
acquired these shares between May 1, 1952 and Oct. 31,
1952. Price—For preferred at par and for common $1
per share. Proceeds—For working capital. Office—350
Fifth Ave., New York, N. Y. Underwriter—None.

oversubscription privilege); rights to expire 20 days from
date of issuance. Price—At par ($100 per share.) Pro¬
ceeds
For working capital.
Business — Natural gas.
Potomac

Northlands Oils

share for each 13 shares of

shares of com¬
share. Proceeds

Manufacturer of electronic and electro-me¬

stock

common

May 20 filed 50,000 shares of 5%% convertible preferred
stock to be offered for subscription by common stock¬
holders of record June

devices.

ferred

—The First Boston Corp., New York.

Co., New York

—

* Sedgwick Corp. (N. Y.)
May 29 (letter of notification)

rights

—

Northern

per

York, N. Y.

$75,000,000 of bank debt and for capital
expenditures and other corporate purposes. Underwriter
Pittston

cent). Price—$1

one

chanical

ceeds—To repay

•

(par

Business

June 9. Price—At principal amount. Pro¬

stock

acquire plant, machinery and equipment; and for
working capital. Office—10-15 Spruce St., New York.

at rate of $100 of debentures for

stockholders

—

—To

being offered for subscription by

years),

(Edgar L.), Inc. (N. Y.)
(letter of notification) 298,000

May 25
mon

Phillips Petroleum Co.
May 4 filed $162,098,500 of 3.70% 30-year sinking fund
debentures due June 1, 1983 (convertible into common
stock

Co., New York. Offering

ir Scillitoe

construction

price. Proceeds—For

L. H. Rothchild &

—

Indefinitely postponed.

Underwriter—None.

program.

(N. Y.)

market

current

writer

Thursday, June 4, 1953

...

Underwriters—Dillon, Read & Co.,
Johnston, Lemon & Co., Wash¬

and

Southern Bell Telephone &
Telegraph Co.
April 9 filed $30,000,000 of 24-year debentures due May

Public Service Co. of

Oregon Fibre Products, Inc., Pilot Rock, Ore.

working capital.

Co.; Kuhn, Loeb & Co.; The First Boston Corp.

Corp., Denver, Colo.
May 21 (letter of notification) 1,500,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For repayment of debt and for working capi¬
tal. Underwriter—Hunter Securities Corp., New York.

Packaging Materials Corp., Providence, R. I.
April 29 (letter of notification) $160,000 of 5% deben¬
tures due Dec. 15, 1960, and 2,000 shares of common
£tock (no par) to be offered in units of an $80 debenture
and one share of common stock. Price—$100 per unit.
Proceeds
For purchase of machinery.
Office — 607
Hospital Trust Bldg., Providence, R. I. Underwriter—
—

lYone.

Palestine Economic Corp., New York
March 6 filed 100,000 shares of common stock (par $25).

JPrlce—$26 per share. Proceeds —For development of
Xsrael industry, etc., and for working capital.
Under¬
writer—None.
Pennant Drilling Co., Inc., Denver, Colo.

(letter of notification) 42,507 shares of common
Btock (par $1).
Price—$1.30 per share. Proceeds—To
Morris Replin, the selling stockholder.
Underwriter—
Peters, Writer & Christensen, Inc., Denver, Colo.

•&-Pennsylvania Electric Co.
filed

$12,500,000

due

bonds

Resort Airlines,

stockholders

Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Kidder, Peabody & Co.; The First Boston Corp.; Equit¬
on

June 30.

Statement effective May 22.

vV Pennsylvania & Southern

Gas Co.

(letter of notification) 98,240 shares of common
(par 25 cents) to be first offered for
subscription

common stockholders of record June
share for each shares held

1 at rate of

new

(with

privilege), with rights to expire

one

tion

oversubscrip¬
July 15; and
Price—$1.50 per share

preferred stockholders.
^Proceeds—To retire $65,000 short-term

debt

and

for

working capital. Office—m Quimby St.,
Westfield, N. J.
Underwriter—None.
'Perfect-Line

rata

basis.

Price—20

—None.

cents

Manufacturing Corp.

Proceeds—For expansion program.

Under-

i Roche Development Co., Phoenix, Ariz.
June 2 (letter of notification) 250,000 shares of capital
stock. Price
At par ($1 per share). Proceeds — For
working capital. Office—5028 No. Central Ave., Phoenix,
Ariz. Underwriter—None.

Rochester Gas & Electric Corp.

175,000 shares of common stock (no par)
being offered for subscription by common stockholders
of record May 28 at the rate of one new share for each
$36.25

per

new

share.

Rights will expire
Proceeds—To

construction.

repay

Price

June 12.

loans

bank

Underwriter—The

First

and

Boston

Corp., New York.

stock to be offered for subscription by holders
of class B stock at rate of one new share for each two

shares held

ment.
Victor

Address

and

lighting equip¬

c/o Alfred Robbins, President 83-06
Ave., Elmhurst, L. I., N. Y. Underwriter—None.
—

Peruvian Oil

June 22.

Price—$20

per

share.

Proceeds

common

stock

(par $1)
(amended April 24 to 1,000,000 shares). Price—$2
per
chare. Proceeds—For general
corporate purposes. Busilaess—Plans to produce and sell petroleum and its
prod¬
ucts from

Peruvian

lands

be held

Government.

Co., New York.

■

under

concession

Underwriter—B.
.

from

Phillips

the
&
...

construction. Underwriters

tile.

New York.

Underwriter—F.; D. Gearhart/ Jr.,

;

•/.

V,;'

\ -t

•.

*•

•

Philadelphia,. Pa. -V '
:-4 vr»
April 27 filed 14,000 memberships in the "Employees'
Stock Purchase Plan
and
'

122,700

reserved

for

sale

Sun

Oil Co.

trustees

and

Subsidiaries"

stock: (no

common

the

par)

plan during July,

1953; also 139,762 additional shares of common stock /"for
possible public sale by selling stockholders during the
period of July 1, 1953 to June 30, 1954" Underwriter—
None.

Tennessee Gas Transmission Co.

None.
Texas Illinois Natural Gas Pipeline Co.
May 6 filed 927,273 shares of common stock (par $1) to
be offered for subscription by common stockholders.
Price—To be supplied by amendment.
Proceeds—For
new
construction and working capital.
Underwriter—
None, Peoples Gas Light & Coke Co., has agreed to take

Union Carbide & Carbon Corp., New York
May 5 filed 417,717 shares of capital stock (no par) to
employees of the com¬
pany under its stock purchase plan.
be offered to certain officers and

^ United Minerals Corp., Salt Lake City, Utah

—None.

May 25 (letter of notification) 275,000 shares of common
stock (par 10 cents).
Proceeds—To George W. Snyder,Jr., President and director. Underwriter—Greenfield &

$100,000 bank loan and for working capital.
Business—Manufacture of plastic materials. Underwriter

ir S. & J. Copper Mines, Inc., Las Vegas, Nev.
May 29 (letter of notification) 1,000,000 shares of com¬
stock.

Price—10

cents, per

share.

Proceeds—For

equipment and working capital. Office—114 North Third
St., Las Vegas, Nev. Underwriter—None.
•

Saint Anne's Oil

April 23 filed 270,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To acquire stock of
Neb-Tex Oil Co., to pay loans and for working capital.
Office—Northwood, Iowa. Underwriter—Sills, Fairman
& Harris and H. M.
cago,

Byllesby & Co., Inc., both of Chi¬
111. Amendment to be filed on June 3.

one

new

share for each three

shares held

(with rights to expire July 2); employees to
be entitled to purchase unsubscribed shares. Price—To

supplied

by amendment.

Proceeds—To

& Co.,

retire

bank

Underwriter—Blyth
Inc., San Francisco and New York.

-^$chlafly Nolan Oil
Mkrch 25 filed

common stock (par 25
share. Proceeds—To purchase and
sell leaseholdes, royalties and producing
properties, to
prospect for oil and gas and to develop and operate

per

producing properties.

Office—Mt.

Vernon, 111.

Under¬

United Mining & Leasing Corp.
Central City, Colo*

May 4 (letter of notification) 115,000 shares of
Price—At

par

(10 cents

For

mining equipment.
Co., Denver, Colo.

per

Underwriter
"

common

share)Proceeds—
_=-*

R. L. Hughes &

ir U. S. Airlines, Inc., New York (6/18)
May 28 filed 1,000,000 shares of common stock (par 5
cents). Price—To be supplied by amendment: Proceeds
—For working capital, etc.
Underwriter—Gearhart &
Otis, Inc., New York.
;
Vault Co. of

America, Davenport, Iowa
10,000 shares of

March 2 (letter of notification)
stock.

Price

—

$10

per

share.

Proceeds —For

common

working

capital. Underwriter—A. J. Boldt & Co.,- Davenport, la.
Walburt Oils Ltd., Toronto, Canada
April 24 filed 660,000 shares of common stock (par $1)
of which 550,000 shares will be offered in the United
States and

share in U.

Co., Inc.

150,000 shares of

cents). Price—$4

Co., Inc., New York.

stock.

Production Co.

loans and for construction program.

Concessions Co., Inc.

Jan. 16 filed 9,000,000 shares of

new

—To retire

of record June 9 at rate of

equipment, specialty wiring devices

bank loans and for

held; rights to
(flat). Proceeds—To re¬

par

all unsubscribed stock.

Rogers Corp., Manchester, Conn. (6/22)
(letter of notification) 10,909 shares of class B

JFor^ expansion.

Manufacturing ventilating

June 8. Price—At

April 27 filed $1,200,000 of "contributions to be made by
employees of company to the thrift plan." Underwriter—

May 8 filed

shares held.

Sun Oil Co.,

writer—Reynolds & Co., New York.

•

subscription

stockholders of record May 20 at rate of $100

factures ceramic

ir Robertshaw-Fulton Controls Co. (6/22)
May 29 filed 160,000 shares of cumulative convertible
preferred stock (par $25). Price—To be supplied by
amendment.

convertible sinking

•
Stylon Corp., Milford, Mass.
May 22 (letter of notification) 32,043 shares of common
stock. Price—At the market (around $1 per share). Pro¬
ceeds—To Joseph Maas, Newton, Mass. Business—Manu¬

Underwriter—None.

• San
Diego Gas & Electric Co. (6/9)
May 20 filed 800,000 shares of common stock (par $10)
to be offered for subscription by common stockholders

—

pay

May 6 (letter of notification) 180,000 shares of
common
(par 10 cents). Price—$1.50 per share. Proceeds—

ctock

Business

Gas Co.

—Halsey, Stuart & Co. Inc.

per

ir Ridley Mines Holding Co., Grafton, N. D.
June 1 filed 120,000 shares of
commoq stock...Price—At
par ($5 pfer share).
Proceeds — For working capital.

mon

June 1

then

pro

common

stock (no par),
21,752 shares of 4.40% preferred stock (par $100), 53,248
chares of 3.35% preferred stock (par
$100) and 39,936
chares of 4V2% preferred stock (par
$100) being offered
fn exchange for all the
outstanding stock of Scranton
Electric Co. Offer expires June 22. Underwriter—None.

May 11

Pennsylvania Power & Light Co.
May 1 filed 743,496 shares of common

expire

Proceeds—For working capital.
Address—Box
242, International Airport, Miami 48, Fla. Underwriter

a.m.

ctock

common

Bids—

of debentures for each 10 shares of stock

Inc., Miami, Fla.

share.

for

(EDT)

Natural

April 20 filed $34,220,100 of 41/&%

Co., Inc.

American

May 5 but rejected.

Southern

March 6 (letter of notification) 724,687 shares of common
stock (par 10 cents) to be offered for subscription by

bidders: Halsey,

Corp. Bids—Tentatively set for 11

from

seven

Securities

Received

advances

repay

fund debentures due 1973 being offered for

1983. Proceeds—For construction program. Underwriters
—To be determined by competitive
biddding. Probable

able

Co., Inc., New

—

March 23

Proceeds—To

ir Quinby £ Co., Inc., Rochester, N. Y.
May 27 filed $1,500,000 of Planned Investments in the
Quinby Plan for Accumulation of Common stock of E. I.

Otis Oil & Gas

May

Underwriters—Blyth

1977.

du Pont de Nemours &

Underwriter—None.

(6/30)
first mortgage

costs.

York and San Francisco.

May 26 (letter of notification) $292,200 of sinking fund
debentures due Jan. 1, 1968 and 5,844 shares of common
/stock (par $1) to be offered in units of $100 of deben¬
tures and two shares of stock. Price—$102 per unit. Pro¬
ceeds—For

Telephone & Telegraph Co., the parent. Underwriters—
To be
determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &

struction

Noryn Mines Ltd., Hull, Quebec, Canada
April 23 filed 500,000 shares of common stock (par $1).
Price—50 cents per share. Proceeds—To repay loans and
tor other corporate purposes. Underwriter—None.

Indiana, Inc.
May 13 filed 472,301 shares of common stock (no par),
being offered for subscription by common stockholders of
record June 2 on a l-for-8 basis; rights to expire on
June 17. Price—$31.50 per share. Proceeds—For con¬

110,000 shares in Canada. Price
S. and $1 per share in Canada.

For general corporate purposes.

Walcott, President of

company,

Washington Gas Light Co.

—

$1.02

per

Proceeds—.

Underwriier—Sidney S.
Buffalo, N. Y.

(6/15)

May 20 filed $7,000,000 of refunding mortgage bonds due
1978. Proceeds—For new construction. -Underwriters—

Number 5226... The Commercial and Financial Chronicle

Volume 177

competitive bidding. Probable bid¬

To be determined by

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and
A. C. Ajiyn & Co. Inc. (jointly); Merrill Lynch, Pierce,
Fenner & Beane and Stone & Webster Securities Corp.

ders:

(jointly); Equitable Securities Corp.; Kidder, Peabody
Co.; Union Securities Corp. Bids—Expected to be re¬

(2445)

termined.

Stockholders

authorized

debt
be

ceeds—To

from

used

voted

May

help

itruction program for 1953.

for

pay

increase

the

Cinerama

$150,000,000.

$75,000,000 to

Pro¬

Jan. 9 it

$100,000,000

con-

Productions Corp.
reported company plans issuance and salo
500,000 shares of common stock. Price—Ex¬

was

about

Underwriters—Smith, Barney

pected to be around $10 per share.
Underwriter—Hayden, Stone & Co., New York. Offering—Postponed.

Bangor & Aroostook RR.
One bid was received by the RFC at Room 1157, 811
Vermont Ave., N. W., Washington, D. C., prior to 5:30
p.m. (EDT) on May 25 for the purchase from it of $1,675,000 of collateral trust 4% bonds due July 1, 1961.
It was refused, however, as it was too low. It is possible
that the bonds may be offered again in the coming

City Bank & Trust Co. of Reading, Pa.
May 6, J. D. Heckman, President, announced that shareholders of record May 15 will have warrants mailed to
them on or about June 1 entitling them to subscribe on
or before July 15 for 15,000 additional shares of capita#
stock (par $10) on the basis of one new share for each

months.

Price—$30

& Co. may

head group.

(EDT) on June 15.

ceived up to 11:30 a.m;

Washington Water Power CoMay 7 filed 1,088,940 shares of $1.28 cumulative con¬
vertible preferred stock (par $25) and 1,088,939 shares of
common stock (no par) to be issued in connection with

into company of Puget Sound Pow¬
Light Co.' on the basis of one-half share of pre¬
and one-half share of common for each Puget
Sound common share to holders who do not elect to re¬

the proposed merger
er

ferred

at the rate

ceive cash
None.

of $27 per share.

Underwriter—

Blue Crown Petroleum

May 12 it
share.

West Coast Pipe Line Co., Dallas, Tex.
Nov. 20 filed

$29,000,000 12-year 6% debentures due Dec.

15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and
one share of stock.
Price — To be supplied by amend¬
ment. Proceeds—From sale of units and 1,125,000 addi¬
tional shares of common stock and private sale of $55,000,000 first mortgage bonds, to be used to build a 1,030
mile crude oil pipeline. Underwriters—White, Weld &
Co. .and Union Securities

Corp., both of New York.
fering—Postponed indefinitely.

Of¬

Line Co., Dallas, Tex.
1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters
White, Weld & Co. and Union Se¬

•

Boston

curities

Co., Boston, Mass.

basis of

one

share for each 10 shares held

new

oversubscription privilege). Proceeds—For

new

May 20 filed
stock

construc-

Central Power & Light Co.
March

reported

was

company

'issue and sell

may

50,000 shares of

new preferred stock.
Underwriters—To
be determined by competitive bidding. Probable bidders:

Glore.

Forgan

MS*

& Co.

(jointly); Blyth & Co., Inc.,
Co., Inc. and Smith, Barney & Co.
(jointly); Salomon Bros. & Hutzler.

Harriman Ripley &

Power Co.

Underwriters—To be determined by competitive
bidding. Probable bidders: The First Boston Corp.; Blyth
& Co., Inc.; Smith, Barney & Co.; Harriman
Ripley &
Co., Inc. Offering—Expected in July.

and

West Penn

(with

tion.

Corp., both of New York. Offering—Postponed

indefinitely.

mon

Edison

—

June 2 stockholders approved a proposal to offer 246,866
shares of capital stock (par $25) to stockholders on the

Nov. 20 filed

—

Van

Alstyne, Noel & Co., New
York, and Walston & Co., San Francisco, Calif. Offering
—Expected in June.

West Coast Pipe

was

Underwriters

unspecified number of shares of com¬
sufficient to raise approximately

common

stockholders

each five
to

mortgage

one

new

share for

about June

bonds,- to

construction.

sale of preferred

received

from

reduce

sale

bank

stock, together

$3,000,000 first

loans

Underwriter—Harris,
\.^ >

Chicago, 111.

stock.

and

Hall

for

Co.,

new

Inc.,

securities,
or

authorize

stock.

common

portion of which will

debt securities convertible into

Stockholders

voted

new

stock

common

March

the

annual

meeting

additional

Underwriters

—

1,000,000

Kidder, Pea¬

body & Co. and Estabrook & Co. handled offering in
November, 1949, of $6,000,000 2% convertible debentures.

5; rights

June 19. Price—To be supplied by amend¬

ment. Proceeds—From

with funds

the basis of

shares held

common

expire

$16,550,000

common

Western Light & Telephone Co., Inc. (6/8)
May 18 filed 78,202 shares of cumulative convertible pre¬
ferred stock (par $25) to be offered for subscription by

Central

Illinois

March 26 it was reported that the company may about
mid-July sell about $6,000,000 additional common stock
(first to common stockholders). Underwriter—The First
Boston

Corp., New York.

Central

Louisiana Electric Co., Inc. /
April 16 stockholders authorized a block of the author¬

Colorado Springs, Colo. Underwriter—E. I. Shelley Co.,

convertible into shares of any class of

ized

stock for

common

parishes

Denver, Colo.

which

the

issuance and sale locally in the

facilities

the

company

are

Jan.

reported

was

plans

company

sale

later

this

ceeds—To
poses.

& Co.

three shares held.

Price—At par

($25

share).

per

Pro¬

repay debt and for general corporate pur¬
Office—38 Main St., Westerly, R. I. Underwriter—

None.

York County Gas Co.

(6/24)
(letter of notification) 6,000 shares of common
stock (par $20) to be offered for subscription by com¬

May 25

mon

stockholders of record June 17 at rate

share for each 12 shares owned
tion

(with

one

new

oversubscrip¬

privilege); rights to expire July 14. Price—$40

per

share. Proceeds—From sale of stock, together with
$600,000 to be received from sale of first
mortgage bonds to
.repay

$600,000

Office—127

bank

West

loans

Market

and

for

new

year

(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co. (jointly); Harriman Ripley
& Co., Inc.
e

Chesapeake & Ohio Ry.
Bids will be received by the
June 10 for the

ment

St., York, Pa. Underwriter—

Jan. 1, 1954 to

May 6 stockholders approved

May 1

(EDT)

petitioned the Maryland P. S. Commis¬
to issue and sell $15,000,000 of de¬

be received from sale of common stock to
Telephone & Telegraph Co., parent, for re¬

loans
To

—

and

for

construction.

new

determined

Probable bidders:

Under¬

competitive bidding.

Halsey, Stuart & Co. Inc.; Kuhn, Loeb

Co.; Morgan Stanley & Co.; The First Boston Corp.;
Ripley Co. Inc. and Alex. Brown & Son

authorized

Harriman

vious financing was handled
by Blyth & Co., Inc.

•

June 1 it

was

announced corporation

plans to offer

pres¬

per

share.

was

announced that company may

consider
refunding the outstanding 47,609 shares of $7 preferred
stock (no par) and 45,891 shares of $6
preferred stock
(no par), both callable at $110 per share. Underwriters—
To be determined by competitive
bidding. Probable bid¬
ders. Blyth & Co., Inc, and Equitable Securities

Corp.
(jointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.
Atlantic

March 27 it

Chicago, St. Paul, Minneapolis & Omaha
Ry. (6/18)
*
Bids will be received by the company at 400 West Madi¬
son

Refining Co.
was

announced that proposed debenture is¬

later this year will be around
nature and timing of the
sue

$60,000,000. The exact
are still to be de¬

financing

(CDT)

St., Chicago 6, 111., up to noon
the

for

June 18

purchase from it of $1,170,000 equipment trust

certificates to mature annually on

July 1 from 1954 to

bidders: Halsey, Stuart &
Inc.; Salomon Bros. & Hutzler; R. W. Pressprich &

1968,

Arkansas Power & Light Co..

March 20 it

ftvely

to'be

scheduled

tion—Expected

received about

Juiy

Registr^

June 11.

Co.

Probable

inclusive.

Co.

was

revealed

the

company

plans to raise

competitive bidding.

Probable bidders

Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler

for bonds:

(jointly); Blyth & Co., Inc., and The First Boston Corp.
xt'v' tt-.
'•.•
v,
o
(jointly); Union Securities Corp., Glore, Forgan &nPo.
and White, Weld & Co. (jointly); W. C. Langley & £o.,
T.oilman Rrnthore* TTarrimnn Rinlev <v C!n.
Lehman Brothers; Harriman Ripley & Co., Inc.! Merrill
Inc.; Merrill
Lynch, Pierce, Fenner & Beane.
Previous equity fi¬
nancing was underwritten by Morgan Stanley & Co. and
•

W. E. Hutton & Co.

competiti^fe

biddings

Delaware Power & Light Co.
stockholders approved a proposal to increase
authorized preferred stock from
200,000 shares to
300,000 shares (par $100). Probable bidders for

the

any new

preferred stock financing
and

include Blyth & Co., Inc*
Corp. (jointly); White, Weld & Co*
(jointly); Lehman Brothers; W. C,
may

Shields

Co.

Langley & Co. and Union Securities Corp. (jointly)J
Morgan Stanley & Co. Stuart Cooper, President, saicT

it is possible that

stock may be sold later in tho

common

year.

Denver & Rio Grande Western RR.

(8/3)

are

expected to be received by the company on ox*
Aug. 3 for the purchase from it of $3,300,000
equipment trust certificates due semi-annually from
Nov. 1, 1953, to May 1, 1968,
inclusive, and on or atjouO
Oct. 1 of a like amount of said certificates.
ProbabI©

bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros! &
Hutzler; Kidder, Peabody & Co.
Detroit Edison Co.
March 24 it

unspecified

was

announced

amount of

company

convertible

(about $55,000,000 to carry
4%) which may first be

plans to issue

debenures

due

1963

interest rate not exceeding

offered for subscription by
stockholders. Proceeds—To retire bank loans and to meet)
construction

costs.

authorized the

new

Meeting—Stockholders

April

I4i

debentures. Underwriter—None.

Eastern Utilities Associates
announced company

was

collateral

trust

plans sale of $7,000,-

mortgage bonds

due 1973. Under¬
writers—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Estabrook
Co. and Stone & Webster Securities
Corp.
First Boston Corp.,

(jointly); Tho
White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
El Paso Natural Gas Co.

March

was

announced

company

plans

place

privately $120,000,000 of first mortgage bonds and sell
publicly 200,000 shares of preferred stock and $25,000,000 debentures.
Underwriter—White, Weld & Co., N. Y«
First Railroad & Banking Co. of Georgia
was announced that this new company

May 4 it

will

offer

stockholders of Georgia Railroad & Banking Co¬
in exchange for each share held, one share of the new

company's stock, the right to subscribe within 30 days*
13 additional shares at $4.10
per share and a $250
collateral trust 5% bond due May
1, 1990; the offer to
become effective upon acceptance
by 95% of the out¬
standing stock. An additional 210,000 of the new shares
would be purchased by the
underwriters, plus any ot
for

$35,000,000 through sale of new securities (mostly bonds).
Proceeds—For new construction.
Underwriters—To be
determined

determined

Halsey, Stuart & Co. Inc.; Harriman
Ripley & Co., Inc. and The F^rst Boston Corp.
(joihtly)Kuhn, Loeb & Co. and Union Securities Corp.
(jointly)"
Morgan Stanley & Co.; White, Weld & Co. and Shields*
& Co. (jointly).

the

Cincinnati Gas & Electric Co.
March

Probable bidders:

(jointly). Bids—Expected to be received in July.

ent stockholders the right to subscribe after
July 15 for
100,000 additional shares of capital stock on the basis
of one new share for each two shares
held. Price — $10

1956, of which about $280,000,000 will be obtained from
sale of new securities.
Underwriters—To be de¬
termined by competitive
bidding. Probable bidders: Hal¬
sey,
Stuart & Co. Inc.; Kuhn, Loeb &
Co., Lehman
Brothers, and American Securities Corp. (jointly); Tho
First Boston
Corp.; Glore, Forgan & Co. Bids—Tenta-

the

000

Proceeds—From sale of debentures, plus $25,-

writers

★ Arizona Bancorporation; Phoenix, Ariz.

company

$40,000,000 first*
mortgage bonds, due 1983. Proceeds—To help pay cos$
of ne.w construction, which, it is estimated, will total ap—
proximately $500,000,000 during the four years througia

Feb. 20 it

authority

payment

common stock from 3,750,000 shares
(no par)
5,000,000 shares (par $20). It is not presently planned
to issue any of the additional stock. Underwriter—Pre¬

Commonwealth Edison Co. (7/8)
May 26 Willis Gale, Chairman, announced
planned to issue and sell an issue of

July 1, 1968, inclusive. Probable bidders:

company

for

American

proposal to increase the

noon

Baltimore

000,000

Mfg. Co.

Chesapeake & Potomac Telephone Co. of

sion

Allis-Chalmers

company up

purchase from it of $3,000,000 equip¬
to mature semi-annually from

Halsey, Stuart & Co. Inc., Salomon Bros, & Hutzler.

bentures.

Prospective Offerings

(6/10)

certificates

trust

construction.

None.

construction pro-*

bidding. Probable bidders: Halsey,
Morgan Stanley & Co.

about

of $10,000,000 common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),
after distribution by New England Public Service Co. of
its holdings of Central Maine Power Co. common stock.
Probable bidders: Blyth & Co., Inc. and Kidder, Peabody

be offered for subscription by stockholders of
record June 10 at the rate of one new share for each

for

to issue anct

debentures. Pro¬

new

Underwriters—To be determined by competitive
Stuart & Co. Inc.::

gram.

Bids

capital stock.

Central Maine Power Co.

stock to

company plans

later this year
$40,000,000 of
ceeds—To repay bank loans and

and The First Boston

located, such stock not to exceed $300,000 in aggregate
market value. They also approved issuance of securities

•^Westerly Automatic Telephone Co. (6/10)
1
(letter of notification) 9,333 shares of capital

Inc.

announced

was

sell

April 21

Public Service Co.

Western Safflower Corp.
April 9 (letter of notification) 240,000 shares of common
etock (par 25 cents). Price—$1.25 per share. Proceeds—
To construct plant. Office—First National Bank Bldg.,

'June

Columbia Gas System,

April 6 it

derwriter—-To

involve

unsubscribed shares.

fractional shares will be issued>
Proceeds—To increase capital anci

sale of

construction program.

Corp.

March 3 it

any

share.

was announced that some portion of the com¬
pany's financing program for 1953-1954 will involve the

$7,000,000, to be offered for subscription by common
stockholders (other than West Penn Electric Co., parent).
Price—To be supplied by amendment. Proceeds — For
buy

held.
per

★ Consumers Power Co. (Mich.)
May 29 company applied to Michigan P. S. Commission
for authority to issue and sell
$25,000,000 of 30-year first
mortgage bonds. Proceeds—For new construction. Un«

Central Hudson Gas & Electric

(no par),

Underwriter—None, the parent to

surplus.

Co., Ltd.

reported company plans to issue and sell
shares of common stock. Price—95 cents per

300,000

two

unsubscribed shares. Proceeds—To retire
$2,190,000
Georgia Railroad & Banking Co. debentures held by
insurance firm.
Underwriters—Johnson, Lane, Space

& Co. and Joseph Walker & Sons.

ir Fort Worth National Bank, Fort Worth, Tex.
June 2 it

was

announced stockholders will vote June 16

approving a proposal to split-up the present outstand¬
ing 300,000 shares of capital stock on a two-for-one

basis, following which 100,000 additional shares will be
offered for subscription by stockholders on a one-for-six

basis.

Price—$20 per share. Underwriters—Dallas Union
c
u:
Securities Co. and First Southwest Co., both of Dallas,
/-*_

„

Tex.
^

Continued

page

The Commercial and Financial Chronicle...
Thursday, June 4, 1953

(2446)

Continued from page

Probable bidders: Halsey, Stuart & Co. Inc.,
Langley & Co. and The First Boston Corp. (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Glore, Forgan & Co.; Leh¬
man
Brothers; Equitable Securities Corp.; Union Se¬
curities Corp. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner & Beane; Harriman Rip¬
ley & Co., Inc.

bidding.

W. C.

General Foods Corp.

June
vote

1 it

was

announced stockholders will on July 22
authorized common stock from

increasing the

6,000,000 to 15,000,000 shares.
standing 5,590,000 shares.

There are presently out¬

No stock split is planned at

this time.

General Telephone Co. of

Montana-Dakota

Kentucky

Washington, D. C.

Government Employees Corp.,
March 18 stockholders

authorized an issue of 3,000 shares

preferred stock (par $100) to carry a cumulative divi¬
rate not to exceed 6% annually. The management
states that, under present plans, these shares will be is¬
sued as the growth of the corporation warrants.

was

■

U. Commission authorized
$200,000 of first mortgage
and $483,000 par value of common stock (the
first to stockholders). Proceeds—To retire bank
Underwriter—F. L. Putman & Co., Boston, Mass.

the Connecticut P.
company to issue and sell
May

bonds
latter
loans.

Gulf Interstate Gas Co., Houston,

stock

Tex.

May 11 it was reported that company may offer for
subscription to stockholders of Panhandle Eastern Pipe
Line Co. a total of $35,000,000 in equity securities (prob¬
ably in units of preferred and common stock). Proceeds
—For new construction.
Underwriter—May be Carl M.

Iowa Electric

Walker &

New

ment

Long Island Lighting Co.
April 21 it was announced that company this Fall plans
neighborhood of 600,000 shares
of new common stock to be followed in the latter part of
the year by an issue of about $25,000,000 of first mort¬
gage bonds
(this is in addition to 100,000 shares of
series C preferred stock, par $100, offered publicly on
May 7). Proceeds—To repay bank loans and for new
common

May 8

Lerchen & Co. and First of

Underwriters

Price—$5
bottling

175,000

par), of which 44,may be considered.

South
Feb.

filed

the

amount

company

unse¬

may

Ide, President, stated that the management

Boston

Corp.

new

shares.

common

The

and

stock

common

Corp.

(6/24)

was announced

plans to issue and sell

company

stockholders

common
on

about

$20,000,000

common

None.

—

United Gas

Offering

—

Tentatively scheduled for

sell about

Corp.

announced company (in addition to above-

was

mentioned

proposed stock offering) plans to issue and
$30,000,000 of debentures. Proceeds—For 1953

construction

program.

Underwriters—To

be determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley &
Co., White, Weld & Co.
and Equitable Securities Corp.
(jointly); The First Bos¬
ton

Corp., Harriman Ripley & Co. Inc. and Goldman,
Co. (jointly). Offering—Expected later in 1953.

Sachs &

Walworth Co.
March

stockholders

stock

common

voted

increase

authorized

from

1,900,000 shares to 2,500,000 shares
and to grant directors right to issue all or part of in¬
creased
stock without prior offering to
stockholders;
also to reserve part of the additional shares for issue
upon conversion of convertible
3y4% debentures due
May 1, 1976. Underwriter—May be Paine, Webber, Jack¬

pro¬

son

new

Curtis, New York

and

Boston.,

Washington Water Power Co.
issuance

announced directors have approved the

was

and

sale

bonds and

May of $10,000,000 of first mort¬

$18,000,000

debentures.

Proceeds—

$24,000,000 of bank loans and to redeem 35,000
$6 preferred stock at $110 per share. Under¬
writers.—-If competitive,- bidders may include: Halsey,
Stuart & Co. Inc.; Union Securities Corp. and Lehman
Brothers (jointly); Blyth & Co., Inc., Smith, Barney &
Co. and White, Weld & Co (jointly); W. C. Langley &
Co. and The First Boston Corp. (jointly). However, both
issues may be sold privately through Kidder, Peabody
shares

an¬

common

was

& Co.

April 10 it
000,000

000,000

Southern California

approximately $30,000,000. Proceeds

—For 1953 construction program.

Underwriters—May be

determined by competitive bidding. Probable bidders for
bonds: Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Harris, Hall & Co. (Inc.) (jointly); Blyth & Co., Inc.;
Kuhn, <Loeb & Co. Probable bidders for preferred: The
First Boston Corp. and Harris, Hall & Co. (Inc.) (jointly).

Southwestern Gas & Electric Co.
issue

mortgage
-

stock

announced company later this year will
and sell 50,000 shares of cumulative preferred
(par $100).
Underwriters — May be determined

stated company may issue and sell $59,first mortgage bonds to insurance com¬

Co.

of 3%

and

several

to 4%

Canadian

companies); $25,*

short-term notes to

the National

City Bank of New York; and about 3,500,000 shares of
stock for about $30,000,000.
Proceeds—To fi¬

nance construction of a natural
gas pipe line from the
Canadian Peace River field to western
Washington and

Oregon. Underwriter—Eastman, Dillon & Co., New York.
West Texas Utilities Co.
\

March

reported that company plans issuance
100,000 shares of new preferred stock. Under¬
writers— May be determined by competitive
bidding.
was

and sale of

Probable

bidders:

Stone & Webster Securities. Corp.;
Ripley & Co., Inc.; Union Securities Corp.

Harriman

Edison Co.

April 23, William C. Mullendore, President, stated that
company is considering selling sufficient securities later

was

common

Georgia Natural Gas Co.

April 29 it

■

panies (including Prudential Insurance Co. of America,
New York Life Insurance Co.; Northwestern Mutual Life

FPC

it was announced a FPC Presiding Examiner
decision, subject to Commission review, author¬

was

of 4%

Insurance

the company to construct 335 miles of pipeline
Alabama, Georgia and Florida at an estimated cost
of $8,141,518.

and

...

(

Corp., Verona, N. J.

announced

in the year to raise

Westcoast Transmission Co.

izing

Monongahela Power Co.

Underwriters—To be determined
by competitive

limit

that

stockholders

the company will offer to its stockholders
40,000 sharei
oi additional common stock on a one-for-five basis.
Proceeds — For construction
program.
Underwriters —
To be named later.

was announced
company plans issuance
the middle of 1953 of $10,000,000 first

May 1 it

Presiding Examiner
filed a decision, subject to Commission
review, author¬
izing company to construct approximately 160 miles of
pipeline at an estimated cost of $5,945,000. Securities
may be sold privately through competitive sale.

Gas Service

the

present plans to issue

gage

Feb.

Corp.
March 6, Maurice White, President, announced
that, after
proposed two-for-one split-up to be voted upon June 2

bonds.

Corp.
that, in addition to the

sale

amend

that

late in June

South Carolina Natural Gas Co.

Watling,

ties Corp.

11 it

stock

current

writer

Offering—Indefinitely postponed.

(jointly; W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬

near

proposal to increase
5,000,000 to 7,500,000
articles of incorporation so
a

stock from

l-for-15 basis (with an oversubscription priv¬
ilege). Proceeds—For 1953 construction program. Under¬

was reported cdmpany plans to issue and sell
$300,000 of common stock. Proceeds—For working
capital. Underwriter—Miller Securities Co., New York.

bidding. Probable bid-

Dec

the

indebtdeness

stock

about

ders: Blyth & Co., Inc., and Equitable Securities Corp.

sale

has

2y2-for-l basis.

company announced

and

provide

United Gas

March 26 it

This issue is callable at $110 per share.
Underwriters—
To be determined by competitive

approved

common

create,
majority of the preferred stockhold¬
ers shall
be 20% (instead of 10%) of the aggregate of
company's secured indebtedness and capital and surplus.

Underwriters—To be determined by competi¬

from

May 1 it

announced company

was

Shield Chemical

& Light Co.'s $6 preferred stock
(no
476 shares are now

Mobile

stock (par $100) and 250 shares
$100) at the Office of Alien Prop¬
erty, U. S. Court House, Room 115, Foley Square, New
York 7, N. Y.
Max Kade, President of the company, has
agreed to submit a bid for the stock of $650,000.

Mississippi Power & Light Co.
Dixon, President of Middle South Utili¬
ties, Inc., announced that refunding of Mississippi Power

•

company may issue and sell
preferred stock (par $100). Under¬
determined by competitive bidding.

new

of preferred stock (par

March 20, E. H.

reported

was

April 10 it

500

Michigan Corp.

outstanding,

stockholders

the authorized

latest

nounced that bids would be received
up to 3 p.m. (EDT)
on
June 30 for the purchase from the Government of

new

—

Toledo Edison Co.

April 21

Collin, Norton & Co. handled
financing.
Probable bidders on
any bonds: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Glore, Forgan & Co. (jointly); Equitable Se¬
curities Corp.; Kidder, Peabody &
Co., White, Weld &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly);
Union Securities Corp.; Smith, Barney & Co.

Press-

if Seeck & Kade, Inc., New York (6/30)
June 2 the Attorney General of the United States

a totai of
60,000 shares of
capital stock (par $20) on a one-for-five basis; rights to
expire June 23. Price—$50 per share. Proceeds—To in¬

surplus.

raise several millions of dollars

To repay

stockholders of record June 9

and

capital to finance two new manufacturing division'
projects in each of which it would own a 50% interest.'
Underwriters-Eastman, Dillon & Co./ New York. ;

1953 and 1954.

^Manufacturers National Bank of Detroit (6/9)
May 26 it was announced company plans to offer to

capital

securities sufficient to

(registered May 8 with
the SEC), approximately
$27,000,000 will be required
from additional financing in the future in connection
with its $35,300,000 construction
program planned for

stock to its stockholders at

shares for each share held.

y j

Sunray Oil Corp.
May 13 company disclosed it is planning to issue and sell

First

bidders:

common

Maier Brewing Co., Los Angeles, Calif.
April 18 it was announced company will offer 400,000

crease

—

ceeds

stock,

stock. Underwriters—Hamlin & Lunt,

common

Buffalo, N. Y., and Allen & Co., New York,

Charles

and

Prob¬

Rochester Gas & Electric

Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co.

per share.
Proceeds — To help finance
plant. Underwriter—None.

up on a

probably Blyth & Co., Inc. and The First Boston Corp.
^(jointly). (2) For bonds to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.,

common

1953

Remington Corp., Auburn, N. Y.
April 14, Herbert L. Laube, President, following approval
of the increase and split-up of common and preferred
stock, stated that the increased capitalization is neces¬
sary because the profit left after today's taxes is far
from
enough to finance this corporation's continued
growth. The common was increased from 50,000 shares,
par $5, to 1,000,000 shares, par $1, and split-up on a
5-for-l basis, and the preferred stock increased from
2,500 shares/par $25, to 50,000 shares, par $10, and split-

to issue and sell in the

new

15,

Boston

12 it was reported company may issue and sell
$4,750,000 first mortgage bonds. Proceeds—To re¬
pay
$800,000 bank loans and for new construction.
Underwriter—Central Republic Co., Inc., Chicago, 111.

of four

July

Stanley & Co. and Drexel Jc Co. (jointly); The First
Corp. Offering—Postponed.

gan

May

additional shares of

dated

Public Service Co. of Oklahoma

struction.

about

rate

tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬

Kansas-Nebraska Natural Gas Co., Inc.

plans issuance and
$50,000,000 of first refunding mortgage
bonds. Proceeds—To repay bank loans and for new con¬

Beane, Harriman Ripley & Co. Inc.

For

certificates

trust

mature annually to and including July 15, 1968.
able bidders: Hafsey, Stuart & Co. Inc.; R. W.

Feb.

bidding. Probable bidders: Lehman Brothers; The
First Boston Corp.; Merrill Lynch, Pierce, Fenner &

(1)

(6/17)

sale in June of

tive

—

York, Chicago & St. Louis RR.

Public Service Electric & Gas Co.

Iowa-Illinois Gas & Electric Co.

Underwriters

Underwriter—

construction.

Bids will be received by the company up to noon (EDT)
June 17 for the purchase from it of $3,150,000 equip¬

Light & Power Co.

May 15 it was reported company may issue and sell
early in 1954 about $6,000,000 aggregate amount of com¬
mon stock. Underwriters—To be determined by competi¬

construction.

new

Glore, Forgan & Co.; Smith, Barney
Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co., Inc.,
and Central Republic Co. (Inc.).
Proceeds—For addi¬
tions and improvements.

Co., both of New York. Previous debt financ¬

Brothers; Blyth & Co. Inc., and Stone & Webster
Corp. (jointly).

additional

ing was done privately.

Lynch, Pierce,
Corp. (jointly);

April 14 it was reported company plans to offer for sub¬
scription by its common stockholders about $1,000,000 of

share for each four shares

new

one

For

writers

April 13,it was reported company may sell in June some
common and preferred stock 6nd/or debentures.
Under¬
writers — For stock: The First Boston Corp. and G. H.

Merrill

Securities

without consent of

Probable

Proceeds—To

Inc.;

Union

Securities

•

40,000 shares of

increase

Co.

&
and

cured

March

for each

Lehman

Beane

Mississippi River Fuel Corp., which owns one-half
of Natural Gas & Oil common stock, will subscribe to
its share plus any unsubscribed shares. Offering — Ex¬
pected early in July.

* Industrial National Bank (Detroit)
June 1 it was announced bank plans to offer to its stock¬
holders of record May 29 the right to subscribe, on or
before June 26 for 25,000 additional shares of capital
eight shares held.
Price—$30 per share.
capital and surplus.

—

None.

(par $10) on the basis of one new share

the basis of

Proceeds

prich & Co. Salomon Bros. & Hutzler.

^Loeb, Rhoades & Co!", New York.

stock

held.

■

Ripley

Fenner

if Natural Gas & Oil Corp.
May 29 it was announced company plans to offer to com¬
mon
stockholders 450,000 additional shares of common

dend

Greenwich Gas Co.

Harriman

Strategic Materials Corp., Buffalo, N. Y.

Utilities Co.

announced company plans to issue and
sell in 1953 approximately $8,000,000 of first mortgage
bonds.
Proceeds—For 1953 construction program/ Un¬
derwriters—To be determined by competitive bidding
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co..
Inc., Merrill Lynch, Pierce, Fenner & Beane and White,
Weld & Co. (jointly).
May 2 it

April 27 it was reported early registration is expected
of 50,000 shares of cumulative preferred stock (par $50).
Underwriters — Probably Paine, Webber, Jackson &
Curtis and Stone & Webster Securities Corp.

by competitive bidding. Probable bidders: White, Weld
& Co. and Kidder, Peabody & Co. (jointly); W. C. Lang¬
ley & Co and Paine, Webber, Jackson & Curtis (jointly);

Wisconsin Public Service Corp.
March 17 it
year or

was reported that the company
may, late this
early in 1954 issue and sell some common stock

to round
be

The

out

its financing program.

First Boston

Underwriter—May
Corp. and Robert W. Baird & Co.

(jointly).
Worcester Gas Light Co.

April 2

was

announced company has

applied to the

Massachusetts Department of Public Utilities for author¬
ization to issue and sell $3,000,000 of 20-year first mort¬
gage bonds.

Proceeds—To retire bank loans, etc.

Under¬

writer!*—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; First Boston

Corp.; Blyth & Con ine.; Kidder, Peabody & Co.

Number 5220

Volume 177

the

eral large undertakings are on

Our

Northern Natural Gas has

$40,-

with

American

due

Gas

market

serial

20-year

Electric

800,000

buying side of governments

to the

Arkansas Power

& Light

is slated to sell $18,000,of
first
mortgage
25-year
bonds and two large "rights" of¬
System

large

and

are

extremely

fed

money.

But

inflation

easy

even

they

The

display

Gas

balance

described as "ex¬

bonds

originally

AMERICAN

METER

Phila.
A

one
a

bond house found

declared

the

business. June

Com¬

1953.

Secretary.

ASHBY,

Preferred Dividend
Common

No.

189

Dividend No.

179

C. I. T. Financial

of $50,000,000

75tf per share
(17A%) on the Preferred Stock for the
quarter ending June 30, 1953 and a divi¬
dend of 25tf per share on the Common

quarterly dividend of

have been

Stock

Both dividends

declared.

payable July 1, 1953 to holders of
record June 8,
1953. The stock trans¬

fer books will remain open.

DIVIDEND

The

Board

per

stock

common

business.

to pay

top

people

and

issues

with

.the seasoned

basis

market.

with

their

counter¬

in
the
seasoned
market
averaging around a 3.50 to 3.65%

parts

return.

28, 1953

Directors

Mining Com¬

de¬

dollar

one

(25ft)

five

cents

the
Stock of this Company have been

twenty five cents

Common

the close

per

1, 1953, to holders of

declared, payable July
record

seventy

per

ASaBBMttmp.

share.

WAGNER BAKING

Preferred Stock, 5%, Series B

the Preferred Stock and

Dividend of $1.3125

qf .business^on June 10,

Dividend of $1.25

per

share.

CORPORATION

Preferred Stock, 5.25%, Series C
Dividend of $1.3125 per share.

The

VINCENT T. MILES

has

de¬

quarterly divi¬
share on the 1%
also a dividend of

regular

$1.75

Preferred

1953. Transfer books will not be closed.

per

Stock,

^15 cents'per share

CARL A. SUNDBERG

Stock

this

dividends

Secretary

May 28, 1953

the

Directors

Board

clared
dend

Treasurer

May 27, 1953

on the Common
Both
1, 1953, to
record June 19, 1953.
Corporation.

July

payable

stockholders of
J. V.

Common Stock.

quarterly dividend

of $0.45

STEVENS, Secretary.

ord

The

its capital

The Board of Directors at a

May 26, 1953, de¬
quarterly dividend of
seventy-five cents per share on
the capital stock, which will be
meeting
clared

1953, to stockholders of rec¬
of

business

June

1953.

10,

transfer books will not close. Checks will

underwritings in the period ahead.
In addition to the two large of¬

ferings postponed this week, sev¬

payable June 13, 1953, to stock¬
holders of record June 4, 1953.

be mailed.

C. JOHN

meeting of the Board of Direc¬

of The Weatherhead Company,

tors

held

May

$1.25
of

1953,

13,

Dividend of

share was declared upon
Cumulative Preferred Stock--J

per

the $5.00
the

Company,

payable July

15»-

1953 to the holders of such stock at

KUHN, Treasurer

Paul E. Shroads

May 28, 1953.

the close of business

July 1, 1953.

Vice President & Treasurer
MORRIS H. WRIGHT

business

Vice President and Treasurer

the weatherhead company

30C Eott

Clevelond 8, Ohio

131 *t Street

CANADA

Broadway, New York 4, N. Y.

DRY

LOAN CORPORATION
DIVIDEND NOTICE

AMERICAN

The

ENKA

the Board of Directors, as follows:

have

CORPORATION
•

•

$3.25 Dividend Series of 1946
per

A regular

common

Stock, payable July 1, 1953
to stockholders of record at

has declared

stock of 40c per

able June 27, 1953 to

record

at the

COMMON STOCK

share, pay¬

close of business June

are

DAVIS,

May 29, 1953

payable June

19^3,
June 1, 1953

business

June

15,

day declared
dend of

||
|g
||
|$

Philip Kapinas

June 15, 1953.

Transfer books will not be

Treasurer

Checks

will

quarterly divi¬

the Capital Stock of

Company for the quarter

ending June 30, 1953, payable

July 15, 1953, to stockhold¬

ers

of record at the close of busi¬

ness

June 15, 1953.

STUART K. BARNES, Secretary

be
&:

Wm.

this

Seventy-five (75) Cents

per

mailed.

750 OFFICES

||
M

quarterly

York, June 3, 1953

The Board of Directors has this

ord at the close of business

over

19^

business

1953 to stockholders of rec-

TEXTILE and TIRE YARNS

25tkt/eg/js

dividend of
$0.15 per share on the Common Stock, payable July
1,

30,1953 to stockholders of record
GAYLORD

New

Common Stock

$.60 per share
The dividends

June 15, 1953.

Quarterly Dividend of

stockholders of

15, 1953.

$4.25 Cumulative Preferred

dividend on the

quarterly dividend
share on the

of $1.0625 per

(for quarterly period ending
June 30, 1953)

the

regular quarterly

Preferred Stock

$.81 Va

Directors

J
%

CUMULATIVE PREFERRED STOCK

DIVIDEND
Board of

following dividends
been declared by the

Board of Directors:

•••••

The

NOTICE

DIVIDEND

Dividends have been declared by

closed.

Any change for the better in
underlying market conditions
should make for a busy week in

The Mark of Quality

Dividend

the Common Stock

FINANCIAL CORPORATION,

the

94th Consecutive

share in

per

value of $50

par

Vice President and Treasurer

Good Calendar Ahead

Secretary

quarterly dividends,

Preferred Stock, 5.25%, Series A
.

115

BENEFICIAL

Recently
similar issues
have
coming out on a 3.75 to
basis

per

No.

Dividend

corresponding

been

3.90%

B. H. Win ham

May 28, 1953

payable July 1, 1953, to stockhold¬
of record at the close of business

Secretary and Treasurer
25

December

2.60 to 2.80%

June 10, 1953.

each

corporate issues were
to market on a 2% to

basis,

314%

payable July 1, 1953, to stock¬

tion,

Dividends

EARLE MORAN

the

grade

coming

has

what

November

Last

the

porate market since late last year
it is not difficult to understand
of

June 19, 1953:

Preferred Dividend No. 180

Rough Road

concern

per

The Common Stock of the Corpora¬

ness on

June 9, 1953.

happened in the high grade eor-

the

(31<)

cents

holders of record at the close of busi¬

share, payable June 30,
1953, to stockholders of record

of Consolidated
Vultee stock being acquired.

dividend of thirty-one and

per

for 400,000 shares

considers

Directors has this data

Board of

Quarterly

ers

New York ft. N. Y.

30 Church Street

cash has been declared

180

has today declared a
of Seventy-five Cents

pany

Dynamics Corp.,
slated for today. Pro¬

one

Dividend Notice

Notice of

clared the following

dividend

stock of General

Anaconda Copper

consideration ob¬

ceeds here would be used

LOUISIANA

SHREVEPQRT,

one-quarter

AMERICAN LOCOMOTIVE COMPANY

payable July 1,

motivated bankers han¬
the projected offering of

When

NO.

May

($.75)

was

CORPORATION

The

LONG ISLAND LIGHTING COMPANY

GAS

UNITED

President.

Stock of this Company, pay¬

Dividend

AnacondA

viously

which

special meeting of

Corporation, a dividend of Ten Cents (lOtf)
per share on the $1.00 par value Common
Capital Stock of the Corporation was declared
payable on July 8, 1953, to stockholders of rec¬
ord as at the close of business on Tune 10,1953.
Toseph F. Martin,

C.I.T. FINANCIAL CORPORATION

Corp.'s offering

new

Corporation
May 27, 1953, at

Treasurer

Page,

operations.

Treasurer.

re¬

ditions.

the close of business

May 27, 1953

yesterday, was set back to
more propitious market con¬

250,000

of record

STOCK

quarterly dividend of
per cent was declared

are

await

dling

share has been declared, pay
stockholders

able June29,1953,to

Treasurer

July 1, 1953 to Stockholders of record at
the close of business June 17, 1953. Transfer
books will remain open. Checks will be mailed.

($1.75)

of debentures, slated

And the same

per

Wichita River Oil

NOTICES

and three-quarters
the Preferred

Dividends

behavior developed
known
that

postpone these

pay¬

to holders of record at

able

Common

ferings, one a debenture and , the
stock, had decided

for

1953

26,

May

Company

other common
to

Note

Bank

sponsoring two large of¬

bankers

of $12.50 per share,

1953,

declared

became

when

The Board of Directors has this day

American

straining influence of the govern¬
ment market's

of the par value

the close of business June 10, 1953.

fifty (50^) cents

*■

the

outstanding Capital Stock of the Company
able July

EDMUND HOFFMAN, Secretary.

Market

evidence

Further

May 19, 1953
A dividend of

JOHN G. GREENBURGH

Funds Service.

PREFERRED

Corporation

Broadway, New York 6, N. Y.

DIVIDEND NO. 224
of Directors has de¬
dividend of 25c Per share on the

1953.

one

the

Better

LIGHTING COMPANY, INC.

May 28, 1953.

dividend

Stock

Capital
at

record

Row."
Wait

can company

payable June 15, 1953, to stockholders of

pany,

"Skid

reading

board

been

has

for
the

reason

chuckle in the notation over

Treasury

May 28,

NOTICES

June 17, 1953.

AMERICAN

Pa,,

principal

Board

ties business under the firm name

Fifty Cents ($.50) per share

humor.

quotation room

the

securities

of the firm.

MC3&U COHPOftATIOM

J. H. MICHAELI,

COMPANY

quarterly

John Kalb is

York

Tennessee

AND

Va.—Charles S.
Peraino is engaging in a securi¬

DIVIDEND

offices

New

in the

engage

business.

DIVIDEND

Mutual Funds Service

Mutual

Street,

own

The

NORFOLK,

City, to

with

formed

42nd

NOTICES

May 26, 1953

1513 RACE STREET

On
Tuesday morning, after two days
of sharp decline in prices, people
entering

his

THE SAFETY CAR HEATING

Glidden, Morris & Co.

was

sense

46th St.

246 East

Incorporated

Through it all the government
bond crowd
managed to retain
its

DIVIDEND

fZZft
he?)
Usj

business

securities

been

East

are

Grueliemeyer was previously

NOTICES

DIVIDEND

plainly
shown early in the week by the
absence of bids for Arkansas Fuel
Oil Co.'s $22,520,000 of debentures
and by the appearance of only a
single bid for Oklahoma Natural
Gas Co.'s 223,463 shares of com¬
mon stock.
/
'
-

offices

investment business in Chicago.

clared

with

Planning Corp.

Planning Corporation

formerly with Chesley & Co.

Hamilton Management

Grueliemeyer Opens

were

governments, but rather
were disturbed by the
unsettling
effect of the current decline on
the markets in general.

Davis

Mr.

the Board of Directors of Wichita River Oil

look for

some

yes¬

brought out
price of 101.78,

not
concerned with the long-term out¬

influence

loose

issue

Street.

120

Co.,

and in the past conducted

Co.'s

were

the other, in order to pick
up 25 bonds,
it was noted, you
might have to buy on the way up.

This

brought

Electric

that

interests

which

Gas

Lambert

—

Bolger

Salle

Theodor H. Grueliemeyer is en¬

Mr.

terday.
The

Investment

Freed

111.

Corp., 445 Grant Street.

$65,000,000 of 4% bonds a fort¬
night ago, decided to turn the

tremely thin" on both sides with
relatively
light offerings suffi¬
cient to urisettle prices in the ab¬
sence of demand on the one hand.
But,

Gas

Elec's

syndicate

Pacific

out

the facts.

The market is

was

Chronicle)

Finley

Llewellynn

gaging

Pacific

not justified

of weakness that was

With Hamilton

with

Investors

has

Financial Chronicle)

to The

Davis has become associated with

South

now

from

thought the Treasury market was

being allowed to put on a

Diego

San

and

Electric.

sympathy with the Administra¬
tion's determination to call a halt
on

(Special

CHICAGO,

DENVER, Colo.—E. Doris Evans

though it limited
such purchases to short-term bills,
was
hailed in investment market ferings by New England Electric
circles.

Investors

Shillinglaw Bolger

000

this week, even

Bankers

L. L. Davis Joins

Shillinglaw,

and

On Wednesday

Federal Reserve

the

for

(Special to The Financial

common.

slowly

picked

deben¬
tures up for bids on Tuesday. The
same day Consolidated Gas, Elec¬
trading.
tric Light & Power of Baltimore
will open bids for $25,000,000 of
Two
30-year first and refunding bonds
000,000

Reporter's
Report
Return

a
while, and
in interest.
Only about $5,000,000 remained
unsold when the syndicate dis¬
solved with the price easing to
100*4
bid 100% asked in free

moved
then

bids.

for

roster

(2447)

The Commercial and Financial Chronicle

J. Williams

Vice-President & Secretary

|§
M

Guaranty Trust Company

of New York

»,*» i ft

♦M

"** ' "Aiwwmhi.1 'i **,

The Commercial and Financial Chronicle..,

(2448)

Thursday, June 4, 1953

amount of

BUSINESS BUZZ

Capital

break-down by size of commer¬
bank loans, the RFC did
make
476
loans
of
less
than

COMPAQV

oho

cial

m/g~kWM

f V\A/

xJL

lion outstanding Nov. 30, 1946.
While
there
is
no
current

MAC Slump
from the Nation's

loan

per

and had 514,000 of such
loans irli the amount of $2.9 bil¬

n..
Behind-the-Scene Interpretation!

$100,000

less,

wM/

$100,000 each in
and

calendar

currently

loans to

1952,
such

making

total of about two per

day.

WASHINGTON, D. G
'•

commitment against
of

revival
Tax by

the

Sec-

—

Humphrey's

George

tary

future

any

Profits

Excess

the Eisenhower Admin¬

istration

was

qualified

flat and

any

ing" it to

un¬

House

amittee

appearance

Adminis¬

Eisenhower

the

that

positively

declared

Humphrey

will not propose exten-

tration

period be¬

«ion of EPT for any

Dec. 31, when the tax
would expire if extended. Fur¬
thermore, asserted the Secre¬
tary, if any further extension
EPT is nevertheless proposed,
the Administration will oppose
yond

finally, said
'*•*1. <*4/t

the Treasury

.Secretary, even if war and total
^mobilization comes, the Eisen-

not

will

Administration

Aower
*

the EPT again.

^propose

There

better ways of getting reve¬

ore

of this

nues, he said.
As for "excess
profits" on war contracts, rene¬
gotiation can skim these off, he

mysterious silences

unquali¬

these

Significantly,

to questions from Rep.
Cooper of Tennessee, the
Tanking Democratic member of
response

Jere

the Ways
'

Means Commit-

and

tee.

Douglas, an Illinois Demo¬
crat, has for years been sound¬
ing off on the virtues of the-in¬
dependence of the Federal Re¬

It is

not known

yet whether

forthright
commitments
may work out to help save the
President's cause of a 6-months

government.

months

has

extension

been

tee

Douglas was Chair¬
Monetary subcommit¬
of the Congressional Joint
of

Committee

the

independence

serve.

the

When Chairman William Mc-

firmation

fore

for

the

mittee,

for

Mr.

Douglas

expressed

doubts about the appoint¬

grave

Martin

because

was

Mr.

previously had been

Assistant

Secretary

the

Senator Douglas
of

opined at the

Treasury Trojan horses

any

being sent to take

the Re¬

over

serve

ator

was

tin's

the

integrity and ability were
Nevertheless, the

highest.

Senator
"Taft, the Eisenhower Adminis¬
tration, due to past commit¬
other

factors,

has

found itself unable to drastical¬

ly cut
«

expenses.

In other words, many in Con¬

gress
HPT

had their doubts
continued

were

that
for

if
six

months, that would be the end
-mf this tax—until Mr.

Humphrey

Board

Chairman,

al¬
though Douglas did not go the
other way and vote against con¬

when he

Finance
was

Mr. Martin

heard

Committee
on

his nomi¬

Secretary

the

Patman

path of the Eisenhower Admin¬
fiscal matters might

be
considerably
easier.
Mr.
Humphrey appears to Congress,
however, to have strictly a le¬
galistic idea of the duties of a

member of the Cabinet, i.e., he
to

regard

himself

army commander who could be

removed

it had

by the President for
fhe slightest public difference
opinion with his Commander-

and

Rep.

Texas,

adopted

the
the

tactic of pleading for the resto¬
ration

flated

Reserve

System

supply.

money

in¬
the

House, the official Democratic
leadership has sponsored this
project,

since

Leader

Sam

John

backed

lution

both

Minority

Rayburn

Whip

Reserve

Secretaries, the

have

the

which

and

Banking Com¬
Chairman

from

Capehart

Ind.)

(R.,

that committee.

the

GOP

leadership to defend one of the
policies of the Eisen¬

clear-cut

Administration

hower

been

due

has

not

disagreement
with this policy.
Rather it is
probably due to apathy, for the
GOP
Congressional leadership
let

any

down

the

Korean

the Administration's
insistence upon heavy foreign
aid spending, and is also un¬
happy not only with the absence
of tax reduction, but the insist¬
ence upon continuation of EPT.
on

In this
ed

connection, it is point¬

out

informed circles

the attrition of 16%

refunding
should

Actually,

that

the last

the
Treasury
regarded as par¬
high in a completely

certain ob¬
no Fed¬
eral Reserve support a cash-in
as
high as 16% should not be

over.

say

where there is

servers,

looked upon as abnormal or the

As
more

even

partial¬

flop.

too

fre¬

goes

persons

and
their

more;

want to

use

cash, and it is not normal to
pect

great

holders

exchange

preponderance

issues

maturing

them

most attractive

for
new

even

of
to
the

issues.

long tax anticipation bills, it is
believed, for under the Mills
plan, 90% of corporation tax
for

1953

income

payable in the March and June
quarters of 1954. The Treasury
will probably need somewhere
between $8 billion and $10 bil¬
lion during the next six months.

Cites Insignificance of RFC

1951, the Reserve continued to
step into the market when the
Treasury had financing to han¬
dle, to maintain "an orderly
market."

This

policy was con¬
tinued with varying vigor until
the
refunding
of
December,
1952, the first to be completely

without

the intervention of the

Reserve.

nancing, it

connection with

enact

came

to be accepted

the

substitute

drive

for

the

RFC, when it expires a year
hence, to make small business

loans, Senator Wallace F. Ben¬
nett

(R., Utah) has issued some
figures to highlight the relative¬
ly insignificant need RFC now
fills in this field.
In

analysis of the Federal

Reserve Board, according to the

Senator,

During the process of ReseVve
System support for Treasury fi¬

New York 6, N. Y.

way,

Graphic Forecasts

Stocks,,
cotton—$70—including
monthly digests to the entfc

grain
free

—

1953—W.
D.
Gann Research,.
Inc., Dept. C-143, Box 656, Scarsdale, N. Y.

Petroleum in the Western Hemi¬

sphere

was

shown

that

the year from November,

Independent Petroleum*

—

Association of America, 1110 Ring

Building, Washington 6, D. C. andL
1437

South Boulder,

Tulsa, Okla^

—cloth.

Thackara, Grant Co.
Formed in New York
Freeman

Grant

and

V„

Thackara, Jr., announce formation!
of the firm of Thackara,
Grant
and
Company, to specialize ins
state, municipal and revenue
tain

completely tax exempt,,
Co., Ill Broad¬

etc.—Ira Haupt &

bonds.

Business Loans

Even after the Treasury-Fed¬
eral Reserve accord of March

tially

are

not be

ticularly

of
discount
tax
exempt;
bonds, stocks with dividends par¬

ex¬

Despite the great need of the
Treasury for new money during
the coming six months, a great
part of it can be obtained by

free market.

tages

time

The

firm

new

offices

will

main¬

Wall

Street,.
New York, Lewis Tower
Building,.
Philadelphia and Fort Lauderdale^
Mr.
for

bond
one

the
&

Thackara

many

has

been

years

field

and

the

Mr.

active

revenue

Grant

was:

the

founding partners of
Philadelphia firm of Dolphiru
Co. Most recently, both were

Vice-Presidents of the New York

municipal bond
and Phelps, Inc.

house

Byrne

1945,

November, 1946, commercial
banks made 115,700 loans in the

Mi¬

TRADING MARKETS
GEO.

KEITH

PR.

PFD.

GEO. E. KEITH JR. PFD.

reso¬

direct

7% to 8%

Treasury roll¬

resulting roll-over

<■

hesitation

This

normal

McCormack

Patman

would

.System

the

Prescott

freshman

attrition

liabilities

James

Montana

Democrats

learn the meaning of a genuine
with Congress, as have

jseems

and

Senator

have

mittee,

Attrition Not Abnormal

generation,
with, Administration
backing.
As a consequence, or coincidentally,
monetary
inflation
has
abated, and money and credit,
being limited to a genuine sup¬
ply rather than a manipulation,
by

Conn.)

(R.,

member

confirmed and

freedom of action such

nority

liaison

j^r;

was

not had in almost

The thought occurred to some
that
if
Mr.
Humphrey could

other Treasury

Bush

Its
far has

has proceeded to restore to the
Reserve an
independence and

Wright

Treasury.

istration

Restores

Senator

from

come

Independence

Murray

Impression

nation

Martin

Led

Creates Good

Secretary
Humphrey,
inci¬
dentally, created an almost uni¬
versally favorable
impression
before
the
Ways
and
Means
Committee, as he did before the
Senate

was

feels

has risen in cost.

appeared.
Humphrey

most vigorous defense so

policy,

drastic cut in Fed-

cral spending, made to

and

that

Senator refused to cast his vote

Reserve

dis¬

—

matters

counts, advantages and disadvan¬
this "honest money" policy.

for Mr. Martin's confirmation hs

other background factor
that, despite a commitment

ments

the afternoon off?"

Homer

Treasury.

equip

quently understood only by pro¬
fessional investors, such as formulas
plan of investing for trust ac¬

be¬

Com¬

The

let's not get into high dramatics, Snitzel—just
say you've got a headache and can you have

con¬

this position,

Senate Banking

problems

technical

cusses

"Now,

was

attorneys

investment

Chesney Martin of the Federal
Reserve Board

Investment Letter—

for

them better to advise their clients

Re¬

firmation.

In favor of

Attorneys'

designed

System, although the Sen¬
quick to express his
personal opinion that Mr. Mar¬

"was

Bookshelf

the Economic Re¬

port, which held a long course
of
hearings in 1949 on debt
management and monetary pol¬
icy. Out of this study the Sen¬
ator proposed a resolution by
which
Congress would affirm

circumstances.

re¬

partly on two basic
Congress
is used, to
Presidents proposing "temporary" taxes to meet an emergency,
-enly to be told that the taxes,
liigh taxes or bad taxes, must
tie continued beyond the tem¬
porary
period because
of an
emergency that never comes to
an end or always unforeseeable
grounded

factors.

point

Man's

Senator

time that he didn't like the idea

.However, opposition to the 6-

the

Business

System from the domina¬

serve

extension of EPT.

tion of the Executive branch of

ments -That

these

down

come

tion.

declared.

fied commitments were made in

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide
with,
the "Chronicle's" own views.)

Administra¬

Eisenhower

when

(This column is intended to

city is Senator Paul H.

the

that

diminishing returns.
The
thing
just
falls
of
its
own
weight," said Senator Bennett.

quietness up to the
time of this writing in the mat¬
ter of the "honest money" policy
of

realize

Douglas's

man

the extension.

have

Administration.

One of the

before the
Ways and Means Comon
Monday, Secretary

his

"You

talk about preserving that needservice to small business we

Douglas Is Silent

opponent

Actually,
Treasury
are supposed tradi¬

Chief.

tionally to play a major role in
initiating fiscal policy and "sell¬

this tax would desire.
In

Secretaries

JOHN

the

IRVING

SHOE

COM.

THOS. G. PLANT 1ST PFD.

maintain

FOREIGN SECURITIES

government bonds at par.
an

Federal Reserve

independence to avoid inflating

RIVERSIDE

CEMENT

'B'

•

Despite

this

achievement

—

attack

upon

the monetary supply—for which
Senator Douglas is conceded a

Firm

Trading Markets

COPLAY CEMENT PFD.

MARKS & HO. INC.

great deal of credit, the Illinois

Senator

•

has

not

yet ixisen
in public defense of his achieve¬
as

ment.

GOP

also

matter of fact,

Congressional
has

been

slow

the entire

leadership
to

defend

FALLS

POLAROID

Foreign Securities Specialists

•

%
%

NATIONAL CO. COMMON
SENECA

SO Bread Stmt... New York 4, M. Y.
Til: HAuow 2-0050

Taletypa NY 1*071

CORP.

MACHINE
1ST

PFD.

LERNER & CO.
Investment

10 Post Office

Securities

Square, Boston 9,Massa

Telephone

Teletype

HUbbard 2-1990

BS 69

Full text of Commercial and Financial Chronicle : June 4, 1953, Vol. 177, No. 5226

FRASER