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TODA¥£kS!ty
OFMICHIGA
TELEVISION AND ELECTRONICS INDUSTRY FEATURED
Reg. U. S
EDITORIAL
As
If it
a
were
cynic,
we
not for the
danger of being regarded
By RUDOLF SMUTNY*
individual today are
his
demand for
"security"
course.
—
The thought, as might well be
less
day
news
response
stock market
more
even
of
round
the
to the so-called Winchell tips on
too
long-term bonds
than the growing par¬
be
can
stock mar¬
in point. But
The stampede
used
in
this
to
general is
a
striking case
episode is merely one of many.
enter various
for
broad
is
a
an
the
of
;
could
That's
,
.
on
powers
term.
•
,
-
*
*
•dual
ized, the term "social security" (by which was
meant not social but economic security) and en¬
couraged demand for a system which placed upon
government a large part of the task of making
the
fact
would
reasonably secure. At the same time
it gave tremendous impetus to a system which
would place upon government the responsibility
Let
old age
be
us
this
Rudolf Smutny
•An
address
New
by
York, New
it
background
basis
for
is
to
difficult
"not
perceive
revolution.
industrial
second
a
Elec¬
brain and nervous
put it another way, electronics is the
the muscle of the new era
and atomic energy
system
offering.
These
on
page
are
Mr. Smutny before the Investment
York City, March 2, 1955.
startling
difficult to grasp.
facts
and
their
implications
are
History teaches that any civilization's
material base is limited by its control over
50
the resources
Now for the first time man possesses powers
of nature.
of
Paul A. Just
ahead.
Continued
38
powers
new
will shape this revolution
and nucleonics its magic fuel.
One provides a control
over matter on a scMe almost beyond belief.
The other
offers an almost inexhaustible supply of energy.
Or to
technical aspects of the matter.
some
up
great are these
tronics is the magic tool that
market ease and a rising bond market
selected for such an
take
ex-
former
the
You would think that a time
of extreme money
old age
even
generations would have
attributed tbem only to a god. Against
member
of
so
that
Treasury
reserves
excess
banks.
economically secure for those who do not
the trouble or are not able to make their
the
man's
of
all
and
conquests
This
time.
same
dwarfs
in this endless battle with nature. In"
_
the issuance of a long-term
by
the
at
mastery
ceeds anything he has dreamed of
'
t
when the
monetary authorities are deflating
the economy by slightly tightening
the money market through the sale
of Treasury bills, which dissipates
bond
be¬
electronics.; With them two
in nature are being
previous
can
sciences
twin
forces
great
There certainly seems to be a par¬
adox, in
of
mastered
only attempt to highlight the prob¬
lem.
called
are
tion
of
Naturally,I
.
atomic energy is a manifesta¬
cause
which
topic
a
They
'
keep> a
academic
an
persistent and possibly even more
The New Deal coined, or at all events popular¬
page
'
..
sciences of electronics and nucleonics.
class in money and
banking busy for the better part of
virile and
pervasive.
on
-
new
generation
that
stagger
the
imagination.
These are the , twin
the bond market"—
on
Association
Investment
betting on horse races to the widespread appeal
of bingo games supports the conclusion that the
American public is certainly not averse to taking
a chance in the hope of getting rich quick. • -
Continued
resulting effects
great temptation, for it provides
opportunity to talk to ,members
New. York,
own
bestowed
have
sciences
~
comparatively
two
Now
scope
time, and the
larity of various other types of gambling from
take
standards of living.?
managers.
this
huge, prizes to a very small number of winning
"contestants" is another.!The persistent popu¬
as
market
has struggled to control
first great victory was the
His
of nature.
Since then a multitude of conquests has
successive 1 generations
progressively
higher
given
of my assigned topic—"The reasons
the Treasury's sale of long-term 3% bonds at this
The
"contests" offering large, even
Yet, the -demand for "security" is as
a
forces
taming of fire.
but they
deflationary economic tool by the
money
energy are con-;
thousands of years man
For
the
not only less inflationary,
are
as
ticipation in speculative activity in the
ket
fhan
offered by the Treasury
of the past few weeks. The reported
;
of the future not
a single room, not even the cellar, will be unaffected by
new atomic-electronic applications that are now pending.
short-term issues, and when
"helps to end the merry-gofrequent refunding operations." Holds
inflationary
Shares
tributing factors. Predicts, in the home
Market, points out that long-term bonds are
the Bond
nuclear
tions,'in which electronics and
Treasury bonds at this time and the effects thereof on
suspected, is suggested by items in the day-to-
Electrons
industrial revo-.
changes nowj
place in industry, transportation and communica¬
taking
Smutny, in discussing the issuance of long-term
Mr.
at someone else's
Copy
lution, Mr. Just draws attention to great
Members of the New York Stock Exchange
his love of gambling and
a
Calling electronics the basis for a second
Hutzler, N. Y. City
Senior Partner, Salomon Bros. &
conspicuous traits of the Ameri¬
can
of
By PAUL A. JUST
Vice-President, Television
Management Corporation
Executive
should be much inclined to say that
two of the most
expense,
Advantages of Treasury's
The Atom and Its
Long-Term Bond Sales
We
Cents
40
Price
-
7, N. Y., Thursday, March 10, 1955
New York
Number 5410
181
Volume
Office
Pat
Association
Continued
REGISTRATION — Underwriters, dealers and investors in cor¬
afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 56.
on
page
32
SECURITIES NOW IN
porate securities are
DEALERS
and
Established
in
u. S. Government,
State and
Municipal
NATIONAL BANK
of INDIA, LIMITED
Bankers
Securities
telephone:
'
to
the Government
STATE
and
?
Members
James's Square, S. W. 1.
In India, Pakistan, Ceylon,
Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland
Protectorate.
£4,562,500
Authorized Capital
BANK
Pald-Up
30 BROAD
Fund
banking and
Trusteeships
also
THE NATIONAL CITY BANK
undertaken
Bond Dept. Teletype:
Our Customers
To
Members N. Y. Stock
County and
American
Exchange
Stock? Exchange
*
/4,
^
■
jk
Dallas
50
BROADWAY, N. Y.
BRIDGEPORT
PERTH
Exchange Bldg.
N. Y.
Cotton
Active Markets
Chicago •
Miami
AMBOY
Maintained
Detroit
Beach
Pla.
Geneva,
•
•
Pittsburgh
OP THE CITY
OF NEW YORK
Holland
15, 1955
Holeproof Hosiery
Imperial Bank of Canada
On
BANK
NATIONAL
Gables
Switzerland
Rights expiring March
SECURITIES
Executed
•
Coral
Beverly H'lls, Cal.
Cartadian Bank of Commerce
Brokers
CANADIAN
Orders
CHASE
THE
NEW YORK 4,
NY 1-708
Dealers, Banks and
Canadian Exchanges
XL-Watson &Co.
^OilthuXAt COMPANY
Bond Department
exchanges
Amsterdam,
Commission
State, Municipal,
Y.
Hollywood,
Net
to
N.
OF NEW YORK
£3,104,687
description of
exchange business.
and Executor ships
123 Years of Service
FIRST
of
Trade
Cotton Exchange
other
and
The Bank conducts every
ST., N. Y.
District Bonds
Inc.
Exchange,
Board
New Orleans
_£2,851,562
Capital
Reserve
DEPARTMENT
Exchange
Commodity
Chicago
Burma, Aden,
EXCHANGE
BOND
Exchange
Cotton
York
New
BONDS
13, St.
CORN
Stock
American
'Bonds
Exchange
Stock
York
New
Branches
CHEMICAL
Municipal
H. Hentz & Co,
in
Kenya Colony and Uganda
Head Office: 26 Bishopsgate,
London, E. C. 2.
West
End
(London) Branch:
HAnover 2-3700
MUNICIPAL
State and
1856
Warrants
Company
expiring May 3, 1955
COMMON
All
At Regular Rates
We offer
to buy
Warrants at
the above Rights and
the current market.
Analysis
upon
request
CANADIAN DEPARTMENT
Teletype NY 1-2270
DIRECT WIRES TO
Goodbody &
MEMBERS
NEW YORK
115 BR0A0WAY
NEW YORK
Domduon Securities
MONTREAL AND TORONTO
1
6 rp oration
Co.
STOCK EXCHANGE
NORTH LA SALLE ST.
CHICAGO
IRA HAUPT &CO.
Members
and
New
other
York Stock Exchange
Principal
111 Broadway,
40
Exchange Place, New York 5, N. Y.
Teletype NY 1-702-3
WHitehall 4-8161
WOrth 4-6000
Boston
Exchanges
N. Y. 6
Teletype NY 1-270S
Telephone:
Enterprise
1820
2
The Commercial and Financial Chronicle
(1130)
-j
For
fi
The
Banks, Brokers, Dealers;
1'
.
!
<
*
*•
•
participate and give their reasons for favoring a particular security.
they to be regarded,
are
Maryland Casualty
CHARLES
Metal & Thermit
Members
Bag & Paper
Corporation
New York
12# Broadway,
,
Private
to
Wires
Chicago,
the
by
Philadelphia,
Portland, Me., Providence, San Francisco
like
these
Specialists in
Rights & Scrip
Since 1917
fcftONNELL & AH
York
New
American
120
Stock
Stock
Exchange
BROADWAY, NEW YORK 5
TEL. REctor 2-7815
a
glass,
of
Dividends
have been paid consistently since
1899. Operations of this well man¬
aged, well diversified company
are
divided into four divisions:
glass and glass fibers 45%-50%;
paints 22%-25%; chemicals 20%-
brushes 7%-10%.
have
Sales
grown
at
com¬
a
$540 million in 1955, with the fu¬
ture
outlook for
growth influ¬
enced by the following factors:
Trading Interest In
(1) The Col um b i a Southern
Chemical Division is one of the
American Furniture
fastest
medium sized
growing
chemical firms.
Camp Manufacturing
glass
Dan River Mills
used
of
covery
Commonwealth Natural Gas
per
car
major
the
and re¬
customer
Chrysler.
.
,.
(3) The continuing construction
of glass
boom and increasing use
Life Insurance Co. of Va.
in
proportion to
value
of build¬
ings.
STRABES,TAYLOR & CO., Inc!
(4) The new fiber glass division
a very dynamic field.
is in
Lynchburg, Va.
Glass and
TWX LY 77
LD 39
Glass Fibers
pickup, it is
possible for the paint division to
also show a substantial gain.
ler, which is currently produc¬
ing about 50% more cars than it
the
in
sion
sales
with
company
having increased at twice the rate
divisions
Pittsburgh's
other
since 1941.
Operations
are
con¬
by the company's whollyowned subsidiary, Columbia
Southern
Chemical
Corp.
This
ducted
division
is
the
merchant
largest
try's output. In addition, it is also
a leading producer of caustic soda
and soda ash. Chlorine is a highly
processing agent for a
wide range of organic chemicals
because of its volatility and low
The company has been con¬
cost.
verting
increasing proportion
products to higher
an
of its chlorine
caustic
and
soda
production of ammonia.
the plant
in
the
Cost
of
is estimated at $3 mil¬
O
"wrap
much
around"
more
windshields
than
do
the
cost
older
1954
over
to
down
about
In
7%
decline
40%
Preferred
the
much as 75%-100%.
1954, construction
was
started on
a
$33.7 million
plant to produce plate glass by a
twin-grinding process.
The fiber glass division makes
various products for the automo¬
bile and building industry.
The
purchase in 1954 of the Glassfloss
Division of Tilo roofing broadens
the fiber glass sales outlook by
adding a diversified number of
products in an already growing
In
by
as
September,
Flat
—is
paint
glass—about 30%
of sales
consumed
sales
in
$520
1954 sales
as
and
were
result
a
plate
of
glass
a
and
to
Chrysler
the
and
This emphasizes
growth character cf Columbia
Southern
particular.
Chemical
In
the
Division
past
10
in
years
PPG pre-tax profit margins have
approximated
20%,
and
on
this
basis 1955 earnings should rise to
between $5.60 and $5.80 against
about $4.10 in 1954.
At 66 PPG
stock
(listed
Stock
Exchange)
on
the
New
York
is selling at
an
historically low ratio to predicted
earnings.
was
field.
&fipenheime/i
Securities
e r
and
Home
metal
(popularly
known
production
Low
of
gave
the
it a
introduced
General Dry
Information
generally to the
through
pots
American
which
pans
the
25 Bread St., New York 4, N. Y.
Phone; HA 2-9766
Tele: NY 1-3222
request
housewife
bought for her kitchen
prices.
at fancy
Established
In 1925 the world production of
aluminum
tons and the
What
under
was
aluminum
30 years!
duction
come
into the
million
2.7
these
Over
of
and
20c
has
30
and
tnree
or
Trading Markets Maintained
Aluminium
of
son
Limited,
Alcoa,
this lusty
born
was
formed
was
Producing Quicksilver Mine
the
years
risen
Bonanza Oil & Mine
per
other, metals
many
materials
tons
price
four times.
It
York 4
Telephone: DIgby 4-0985
In 1953 the world's pro¬
was
pound.
price
203,000
industry in these past
wholesale
the
1926
80 Broad St., New
price 28c per pound.
change has
a
LEWIS & ST0EHR, Inc.
in
1928.
over
to'take
vari¬
properties owned by Alcoa in
exchange for Aluminium's shares,
Report
on
request
ous
which in turn
distributed to
were
Alcoa stockholders.
a
result
United
of
1951,
in a
was
New York City 4, N. Y.
Telephone DIgby 4-0860
cut
completely loose
its parent.
In the
succeeding few years it has grown
into
an
important and
serious
from
L.D. FRIEDMAN & CO. Inc.
52 Broadway,
judgment
court, Aluminium
a
States
Limited
Then in
Alcoa,
rival of Alcoa.
'
LAMBORN & CO., Inc.
; 99
'
One
The quarterly dividend
recently increased to 45 cents
from 35 cents. The
extra
85
1954 year-end
cents.
It
for its
reason
success
WALL
STREET
centage of construction is several
this
high caliber stock.
YORK
5, N. Y.
policy of popularizing aluminum
by bringing the price down. It is
making
money
minum
cheap
uses
to such
become
an
making
alu¬
widening
other
rival
of
was
able
to
sell
below
that
of
its
Refined
—
Liquid
'
-
■
*
Exports—Imports—Futures
pro¬
DIgby 4-2727
parent
of its other competitors.
Producing aluminum is about as
simple as making steel. It is a
matter
of
processing
the
raw
or
—
aluminum
cheap by reducing the cost cf
duction
Raw
k
nonrferrous
metals.
It
SUGAR
its
extent that it has
important
and
copper
by
and
an
any
material
bauxite
with
low-cost
electric power. It needs an assured
supply of very large quantities of
cheap electricity. Aluminium Lim¬
ited
has
acquired
reserves
of
Over-the-Counter
Quotation Services
for 41 Years
bauxite in British Guiana, Jamaica
and
French
West Africa for at
least
50 years production and it
has provided for its electricity by
mostly by the
might be erecting enormous hydro-electric
building industry. The -reasonable to look for dividends plants in both Eastern and West¬
use
of glass in construction has
ern
Canada. In fact what it has
totaling around $2.75 which would
been increasing at a rate where
done at Kitimat (British Columattractive yield for
the value of glass used as a per¬ provide an
was
NEW
is its
National Quotation Bureau
booming
Membera New York Stock Exchange
on
public
and
Batteries
was
years
value.
Baltimore Baseball Club
as
Aluminum
those
in
scarcity
first
the
Aluminum Company of
America
Bankers
Investment
&
Broadway,N.Y.6 COrtlandtT-5680
One
Mellon.
of the Mellon for¬
sources
was
Alcoa).
til
1897
Office Tokyo—10 Branches
Brokers
his
of
retary
Co., Ltd:
Established
Sec¬
famous
Andrew
Treasury,
>
write
Yamaichi
to
b
(1 9 2 3-
-28)
Luitweiler
C.
James
independents.
levels
Mills
between
$550 million.
types, dollar sales of automobile
glass
could
exceed last year's
Indian Head
tion
or
us
I i d g e's
o o
potential.
T
500,000 cars and reach six million.
Taking into account the fact that
Trading Markets
Call
.
Administra¬
as
lion.
high demand
Columbia Southern, because of
for Pittsburgh's glass products, as. its
resources, extensive research
Chrysler
directly
accounts
for and development, has been able
15% of total sales.
Chrysler is to capitalize on expanding mar¬
currently producing about 19% cf kets for both industrial and deriv¬
the automotive output, compared ative chemicals.
to 12%-13% in 1954. In addition,
Conclusion
the total production of automo¬
biles in the U. S. is expected to
We estimate that PPG sales in
exceed
the
1954
production by 1955 will be up hy about 25%
of Japanese
P resident
raw
priced end products. For in¬
stance,
an
ammonia
producing
plant is currently under construc¬
tion and is expected to be in pro¬
duction in April, 1955. This plant
will utilize nitrogen developed by
of
r e m e m
knowledge '
s
old
enough
producer of chlorine in the U. S.,
accounting for 15% of the indus¬
investors with
—
news!
Some
tune
growing divi¬
did in 1954, means a
""f®
that's
*
to investors with vision—
out¬
i t
have unusual appeal
may
threat¬
to
distance
C
branch offices
our
SECURITIES
com¬
pany
of the
Chemical
This is the fastest
chlorine
The recent comeback of Chrys¬
•aC
sidiary
building out-^
the
on
look and automotive
wires to
JAPANESE
But
parents.
business world, a
former sub¬
the
in
NY 1-1557
outstrip
and
up
J
valuable
(2) The increase in dollar value
of
grow
illustrious
when,
of
pounded rate of over 12% since
1946, increasing from $184.7 mil¬
lion in 1946 to an estimated $520-
Basset! Furniture Industries
children
their
are
Based
rate.
Exchange
Exchange
seeing
to
are
the chemical industry.
Exchange
accustomed
are
upswing and from the
continuing residential and industial construction growth.
Brush
sales
(including rollers) over a
number of years have shown con¬
siderable stability, and are ex¬
pected to increase at a nominal
paints and equipment and is an
important and growing factor in
23%, and
Members
We
parent
F. Arlington
Charles
Stock
Stock
Orleans, La. - Birmingham, Ala.
Mobile, Ala.
Direct
Aluminium Limited (Canada)
Chrysler
manufacturer
leading
New
Hayden, Stone & Co., New York City
to the
are
York
American
HAnover 2-0700
LUITWEILER
C.
J.
about
sales
New
19 Racfor St., New Yark 6, N. Y.
the largest customers
for paints and the division is ex¬
to benefit both by the
pected
all
is
is
construction
divided
dustry
com-
Members
Members
ens
ments.
pa ny
(Page2)
sales. The auto¬
mobile field and the building in¬
require¬
This
Steiner, Rouse & Co!
Luitweiler, Hayden, Stone
general "trade"
Pitts¬
fills
C.
Co., New York City.
per
60% to industrial and 40%
is
burgh Plate
Glass
needed
glass
commerical
Paint
security I
best. * I
believe
of
Paints—Brushes
mar¬
that
—
the
'
Cleveland,
Houston, Los Angeles,
and
currently
ket
PHILADELPHIA
BOSTON
Boston,
5
J.
twin
expected to increase 6%, sales of
flat
glass may increase by as
much, as 10% to 15%.
undervalued
Teletype NY 1-40
WOrth 4-2300
Direct
is
Exchange
(Canada)—
&
foot under this process has
Since
1955 residential
square
,■
Member
Bought—Sold—Quoted
City. (Page 2)
Limited
Aluminium
walls,
doubled.
and
whose stock
1920
problem of insulation,
from the use of
amount
growth still
ahead
New York
plates of glass with an air space
sealed
between them.
Thus the
time with real
New York Hanseatic
stock
Stock Exchange
Louisiana Securities
it was 10 years
as
picture windows and glass
has been solved
by using
year's
a
high
The
ago.
which has a good
The company
in
Associate
York
New
as
Arlington,
Dept., McDonnell & Co.,
search
which developed
City
growth record, is well diversified
in dynamic fields, able to show
a substantial increase in earnings
Time Inc.
American
York
Pittsburgh Plate Glass Co.
Statler Hotels of Del.
Established
times
ARLINGTON, JR.
F.
New
Official Film
>
are not intended to be, nor
offer to sell the securities discussed.)
Dept., McDonnell & Co.,
Research
New Britain Machine
as an
F.
Charles
Co.—
Jr., He-
Glass
Plate
Pittsburgh
(The articles contained in this forum
Long-Sell Lumber of Mo.
Alabama &
Their Selections
week, a different group of experts
and advisory field from all sections of the country
in the investment
Holly Corp;
Participants and
Forum
A continuous forum in which, each
Investors Div. Services "A"
Week's
This
Security I Like Best
i*!
Dan River Mills
Southern Advance
Thursday, March 10, 1954
...
Continued
on
page
8
Incorporated
Established 1913
46 Front Street
CHICAGO
NewYork4,N.Y.
SAN FRANCISCO
Number 5410
Volume 181
.
..
The Commercial and Financial Chronicle
(1131)
IN D E X
The Look Ahead With Electronics
f"
By DR. ALLEN B. Du MONT*
-
•r-
i
-
—Rudolf
Economic Problems for
*
-
^the
-as
i
1
-
past 15 years, and electronics,
industry, did not really M,gin u nt i.l
-had
an
<-
ginning
a
saw
d
energy
tools
for
r^adicf.
> com m u
an
hi
ca¬
•
t
or
age
for industrial
an
military
—
Discourse
we
;
'■
'
new.
■:
Perhaps at this
v;.
additional
it would
pome
be well to attempt some definition
what /is meant by electronics
of
the* electronics
and
industry. Ac¬
cording to the dictionary it is
that
branch
of
physics
which
-
treats
of
the
emission, behavior,
and effects of electrons — espe¬
cially in . vacuum tubes, photo¬
electric
We have
the
be
added-^rf or they
V
being used
the work of
tubes. ;••' "
"
*
In
understandable
more,
of
source
-
New
terms
precision
processes, and
measurement.
-•" ■* •
-
>
*
electronics
The
-v-.
.
-
/
-
industry,
,
'
as
such,, embraces the- tens of thou¬
sands of companies that have any
electrical -energy,
internal combus¬
;*
of this energy for purposes
beneficial to mankind. The .first,
use
New
generating plants
coming into being. The first
ocean-going vessel has success¬
fully used atomic energy for its
power source. The atom will un¬
doubtedly serve mankind more
•efficiently than existing methods
.'
the
blast at
enabled
man
to
—
must and will be called thd "Elec-
*An address liy Dr. ' Du Mont at the
Annual ^Bahqijiet
of the Los Angeles
Chamber of Commerce, Los Angeles, Cal.
G.
Orth.
T.
M
—Frank
—Elmer
W,
:
Engstrom
Antennas————
expert
•electronics.
I
in
specialized in
the
should
as
field
state
of
assume
————
:
.
Editorial
on Our Far
Judd Dies__
Orrirt R.
25 BROAD
————
James A, Day Terms Stock Prico^ Averages
Right, Mr. President! But Stick to It!
See It
As We
Bank
a
•
_
_
(Editorial).
Bookshelf
Mutual
Funds
Observations—A.
Wilfred
May—!
Reporter
Our
Reporter's Report—
on
Utility
—.—
Governments.——
Our
Public
Securities
——___
——„——_
1--——————
The ,Market
.
.
The Security I
.
and You—By
—
Washington
Direct Wires
and
You
NEW
5
51
63
43
Nelco
56
—
DANA
COMPANY, Publishers
second-class
as
metallic
is
E.
C.
Eng¬
DANA
SEIBERT,
,
matter Febru¬
TELETYPE N. Y. 1-5
Thursday (general news and ad¬
issue) and every Monday (com¬
statistical Issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
vertising
Glens Falls
Worcester
Other
Chicago
Offices:
3, 111.
135
South
(Telephone
La
Salle
St.,
STate 2-0613);
the
"At present all techniques for
ex¬
uranium fluoride
or
uranium
tetra-
fluoride by calcium."
Memorandum
Subscriptions in United States, U.
Possessions,
Territories
and Members
S.
of
Pan-American
Union,
in
Canada,
Other
Thursday, March 10, 1955
and high purity
magnesium. Company
sole producer of metallic1
ary
25, 1942, at the post office at New
York, N. Y„ under the Act of March 8,1879.
Subscription Rates,
President
calcium
tracting pure uranium from crudef
ore
depend on the reduction of
Dominion
WILLIAM
has
with
boron free
York 7, N. Y.
HERBERT D. SEIBERT, Editor St Publisher
owned,
contract
calcium in the U. S. A.
Copyright 1955 by William B. Dana
Company
Reentered
Metals, 100%
additional
an
the Atomic
Energy Commission to1
enlarge the facilities of the $5,000,-!
plant for the manufacture of!
64
Drapers' Gardens, London,
land, c/o Edwqrds & Smith.
Reg. U. S. Patent Office
signed
000
2
5
—
1
Published Twice Weekly
ENGLAND
LIME COMPANY
23
1.—
—
to
Philadelphia,. Chicago.. Los Angeles
*]yir, Bargeron's column not available this week.
.
ST., NEW YORK 4, N. Y.
<
40 Exchange PL, N. Y.
Teletype NY 1-4825 & NY 1-1826
*
55
52
14
—____
—
The Btate of Trade and Industry—
New York Stock Exchange
Chicago
HA 2-0270
50
45
Wallace Streete—
Like Best———
securities
Singer, Bean
& mackie, Inc.
-1————61»
Prospective Security Offerings—
Securities Salesman's Corner.—i
over-the-counter
more
43
Registration.!
In
Now
————_
—
Securities—
Securities
Railroad
.———
———————
————:
250
41
Banks and Bankers.———
News About
+
trading markets in
-
News—Carlisle Bargeron
Indications of Current Business Activity—
Request
on
53
63
1——
——
maintain
than
—-
—
—
From Washington Ahead of the
cathode-ray instruments.
Today
electronics is-comparable to medi-
Schenectady
41
64
Dealer-Broker Investment Recoriamendations-——-—8
WILLIAM B.
•
We
.Cover
—
Stocks
Insurance
and
Prospectus
40
_41
_
(Boxed)—v_—_——
of
$55.00
per
$58.00
year;
per
year.
Countries, $62.00 per year.
Bank
and
Quotation Record
$37.00 per year.
Note—On
the
rate of
request.
DAYTON HA1GNEY & CO.
Incorporated
>
—
Monthly,
BOSTON 10, MASS.
(Foreign postage extra.)
account of
the fluctuations in
remittances for for¬
subscriptions and advertisements must
exchange,
eign
be made In New
on
75 FEDERAL STREET
Other Publications
Every
•
Misleading—_
Coming Events in the Investment Field-^a
past, present, and fu¬
technically, economically,
socially, and even internationally.
•
36
Regular Features:
of
36
Hycon Mfg. Co. Common
24
*
——LPurchasing Agents Report Renewed Business Vigor.
Nat'l Prosperity Plan Proposed by Keyserling Group—
Natural.Gas
now
page
1Q
Steel Products Eng.
——
plete
Nashville
._
—_
PREFERRED STOCKS
TELEPHONE HAnover 2-4300
Albany
Credit-
(Letter to Editor)
"Guaranty Survey" Cites Dangers in Federal Regulation of
FINANCIAL CHRONICLE
Boston
«
Frederick G. Shull Argues for Gold Standard
to know
Spencer Trask & Co.
.,
—
24
REctor 2-9570 to 9576
...
Standard Uranium
Eastern Policy (Letter to Editor)
Homer J. Livingston Urges Caution on Mortgage
the
on
Consol. Diesel Elec.*
c
40
—
Guild Films, Inc.
—
Continued
Brown Allen
William A. Robertson i,n Agreement with "Chronicle"
25 Park Place, New
Members
SO
Television Chains—-- 26
on
City
»
———_
.
Philadelphia &
Lake
26
•_
electron
here
me
Teletype: NY 1-4643
Salt
•
Harold Harris Cites Expanded Market for Company's
Businessman's
You have invited
Broadway, New York 4
DIgby 4-4970
Direct wires to
Folsom
The COMMERCIAL and
have
42
—
Federal Court Vetoes Curb
chemical, and even1 office pro¬
cesses. Power, energy, machines,
chemistry, communications, trans¬
portation, and-implements of war¬
fare—all are now, to some extent,
controlled by electronic devices.
That control will grow, not lessen,
as more experience is gained with
supposed
J. F. REILLY & CO.
18
Mitcheil
Electronics in the Field of Communication
!
For many years we
18
„—
Benjamin Franklin and Electronics
^Hiroshima there has been an in¬
creasing tendency to say that we
My personal experience, however,
are now living in the Atomic Age,
has been primarily in the fields
I dispute that term very strongly.
of
vacuum
tubes,
cathode-ray
Instead, I think, our present and
tubes,
television
receivers and
future technological development
transmitters, radar apparatus, arid
f
16
Public?—Sylvester L. Weaver, Jr
—R.
They'have
the
use
Federal Uranium
16
Sprague
A Look Ahead in the Electronic Tube Industry
,
the photo-electric cell.
10
Developments in Television and Radio
—Don
cathode-ray tube, and
tube, the
ture
Lisbon Uranium
6
:
Electronics: World'3 Most Promising Revolution
foundly influenced by the'tlevelopments that led to the vacuum
all
first atomic
3
Cobleigh
Transistorized Radio Coming.—Benjamin Abrams
energy.
all industries who
*
Since
Mont—_
Du
—W. R. G. Baker
atomic electrical
•are
for power and
the
-
component parts are a substantial
that the art or science of elec¬
segment of the industry. They are
tronics has become too complex
the manufacturers of vac uu m
and specialized for any person to
tubes, transistors, capacitors, re¬
be expert or authoritative in all of
sistors, coils, dials, panels, wife
its, phases. There are persons in
and
so
many
other necessary
"parts.
Sabre Uranium
What's Ahead in Color Television for Advertisers and
the beginnings of
seen
a
multitude" of parts made by-either
companies, and so the makers of
.
Stancan Uranium
Cover
sources.
assemble
devices
electronic
>
37
Developments in Electronics
;—Robert C.
part in the manufacture of elec¬
devices-^whether • they be
television
receivers, radar sets,
"man's electronic servant. It is the
•c am p i e x
electroiric "computers, art
&nd
science
of
electronics
control systems for. guided mis¬
which will control and regulate
siles, cathode-ray- instruments, or nuclear
energy as it is now regu¬
.hearing aids—to name a very few.
lating conventional energy
Most manufacturers of complete
tronic
Standard Uranium
30
28
Outlook for Large-Scale Production of Color TV Sets
pertains
dustrial
r
j
—Brig. General David Sarnoff
power-
to the be¬ for instantaneous communication,
havior of electrons in the control for precise measurement, and for
rof communications apparatus, in¬ automatic - control- -of industrial,
electronics
—Dr. Allen B.
Incolored TV Comment—Ira U.
now
are
increasingly ta do
.vacuum
could
i
The Look Ahead with Electronics
cathode-ray tubes, /
Nevertheless, J believe .strongly
apd. the like. Transistors and other
that mankind will be more pro¬
units
4-6551
Industry
The Atom and Its Electrons-KPaul A. Just_____
cells,
semi-conductor
WHitehall
19
>
*.
Television and Electronics
on
Telephone:
.
supplementing
'
Obsolete Securities
Dept.
WALL STREET, NEW
YORK
13
_______—
—
Longevity—Roger W. Babson—_
on
Articles
increased '*■ production,
and >steam, and the
-measurement tion engine.
is relatively
11
2
TJie New Military Reserve Plan: A Step Toward UMT *
> —L,
S; Buckmaster
Recent'Changes in Employment and Unemployment
application of power or
to progressively £ refined
control
Dr. Allen b. Du Mont :
v
99
Ross Gborne——__— ———12
Tax Credit Dangers—J.
century
machine
today.
9
....
T
Failure of the United Nations^Hbn. William Knowland
•
and
—_
Business arid the Investor in 1955—Paul-G. Kimball
whether used constructively
destructively, takes its place as
ergy,
devices
troiiic
-
.
•more
extensive
of elec-
use
4,
the
obsoletes!
-f
efficient processing, or more
rapid transportation. Atomic en¬
ptions industry,
but
of
the
over
that junk
on
<
A
dustry
"wild"
Gash in
Considerations in Present Status of Securities Markets
—Edward T. McCormick-—_—10
.
> ■>
19th
-
—Aryness Joy Wickens————__
Our Current Population Trends—.Mortimer Spiegelman—r
electrical in
and
early
.-••.«
only three tools—the wheel, the
lever, and the sail. With the be¬
then
Before
..we
the
WalliiL:--——_
—Gordon T.
•
of energy.
source
7,
technical progress-was pretty well
measured
in the-application " of
World War II.
WMiJmmmmmm
new
...Until
a
*
We go
'
J
Age;"' Atomic" energy., is
exactly what its** name implies—^
an
UNTAMED
6
*
_.
Current Aspects of -Executive Compensation-
that has ironic
word
a
general usagA only • in
—G, Keith Funston
f
'
into
4
-
_
Present Level of Stock"Prices Reflects- Investor Confidence
by electronics. - Placesv particular emphasit on growing inters
J
dependenceofthe; television and motion picture industries,
andforesees;early/development of a combination television
'
and motion picture earner*.
Estimates by ^197© aggregate
::.'■> * annual elertronie production will reach $20 billion. Electronics is
'
-
r*
come
Burgess.
Over-Burdened Congress—
an
Schmidt
—Emerson P.
autotiiatk education
even
Smutny !_;_J__Cover
Public Debt and public Welfare—Hon: W. Randolph
app!ication tbat covers elecironics and tae elecironic industry and
holds our present and future technological development must
and will be within an "Electronic Age/'. Envisions, in future,
Ji^bways^und
Page
Advantages of Treasury's Long-Term Bond Sales
Teleririoii executive"and- scientist describes tbe broad
electronic automobile
'
.
President, Allen B. Du Mont Laboratories, Iric;
»
Articles and Neu>*
<
^
I
3
York
funds.
Telephone
Liberty 2-6190
A. T. & T.
Teletype BS 596
4
The Commercial and Financial Chronicle
(1132)
successfully
pleted
Public Debt and Public Welfare
The most
spectacular part of this was the
issuance of $1.9 billion of 40-year
M%
bonds, jthe first long-term
for Monetary Affairs
Under Secretary of the Treasury
which
bonds
the Treasury's recent $14 billion refund¬
ing operation, Secretary Burgess reviews certain aspects of
Treasury financing which distinguish it from municipal, corpor¬
ate and private financing.
Points out Treasury has to pay
mwh more attention to the effect of its operations on the gen¬
its
*- - -
the kind of
the
Treasury
which
which
are
from
financing
its
in
faces
and thus, must exercise caution that
particular, building and busi¬
ness
spending.
This meant the
need for
the
different
unique*" and
good market for mort¬
a
good market for new
gages and a
issues.
security
avoid
To
com¬
petition with these markets, most
of the
1953
is¬
short-term
in
done
was
constitutional
his
him
These
the
were
practical
3s
When
sold.-
just
Administration
from
retreat
jective but
Members
Club
those
of
of
will
" with
United
States
the
the
We
long-term
a
ob¬
adjustment to
was an
i
room
which
these
raise
had; of-
which
money
in forging the sinews
protect
our
people
to
war
enemies.
it will be
What
when
against potential
partici¬
pation in the
$14 billion
some
a
blessed
these
day
vast-sums
back
into
tion
refunding op¬
eration
that
we
by taxes or bond issues has
be spent
to
in
has certain
unique.
One
grim necessity:
are
reflects
much of the
so
almost
that
everybody
Financing
Treasury financing
of
suppose
direct
instead
be
diverted
human
satisfac¬
into
war-like
can
of
Treasury? preparations.. But at present
have no such prospect.
the
has
to
we
just com-1
pleted and I take this opportunity
Treasury
in
shares
two
satisfaction.
of
fort
he
able
for
ings,
sources-
his ef¬
made avail¬
roads,
new
public
new
great
Through
funds
sees
t
sales¬
bond
successful
Every
man
successful.
program
;
build¬
and a
new
works,
thousand and one other means by
the standard of the Amer¬
which
ican
people is steadily rising.
see
isfied.
the needs of investors sat¬
We
our
see
bonds
The first essential
where the flow
other
uses
come
and
the
again
add
to the total
satisfaction.
very
of
sense
of in¬
security
of human
Thus, we have
a
sort of job which
human
to
may
A
preserve
for continu¬
and
United
the
carries
Government
much
effect
of
it
peace.
all
financing
Treasury has
attention to the
more
its
between
of
operations
the
on
general economic situation of the
Our
country.
huge
debt stalks through
a
giant and
great
$278 billion
our land like
everywhere
we
must exercise
will
do
damage
care
the
to
economic fabric of the
So,
unlike
business,
first
the
or
venient
such
not
in
money
a
or
it
it
delicate
♦Extracts from remarks
by Dr. Burgess
Municipal Bond Club of Phila¬
safe
of
city,
a
is
a
our
not
just
most
the
con¬
way
of
the
steady
flow
in
better
turities
We
be
to
set
situation
gradually.
start
selling
by
delphia, Philadelphia, Pa., Feb. 28, 1955.
made'
The
shelter..
bonds
faded
for
market
down.
what I
illustration
has
just
inflation
cost of
three
carried
had
the
12% in less than
One of its features
living
up
years.
the
was
placing of huge
ment
While
orders.
prices
turned
1951
and
1952, primarily due to farm price
the
in production
had started up again the second
half of
1952
and
made quite j a
bulge in the spring of 1953. Much
drops,
this
of
boom
due
was
mulation
of
to
over-accu¬
inventory
to
and
economic
was
stability.
inventory pile-up went on
and the crescendo of government
buying- continued, an economic
threatened
was
the turn
We
very
recommend the
as
finally
Restraints
was
Three
That
into
when
boom
PRICES
AND
ON
in
situa¬
Eisenhower Admin¬
into
itself
plunged.
restraint
of
play
bounds
to
and
Government
The
was
at
were
keep
thus
the
avoid
spending
was
Federal
Reserve
V
A
;
debt
con¬
American dollar the soundest and
the most reliable money on earth.
We
have
a
us.
The
tradition
great
American
be¬
dollar is
symbol of sound value and in¬
tegrity
all
keep it
the
over
handle
must
world.
affairs
our
so
We
to
as
'J
'
so.
Donald B. Fisher Has
dis¬
Own Firm in Detroii
;
sev¬
>
.1
■
!
•*.
•
eligible
for
pur¬
believe
this
step
We
without
need
ihe
principle
ownership.
of
re¬
-
I
want to again express the ap¬
preciation of the Treasury to the
members
for
I
of
am
Donald
that
of
most
Fisher
There is
Building
and
finer way to assure a
no
distribution
there
are
can'do
you
few
Fisher.
,
of
the
debt
greater favors
for. anyone
than
to
persuade;; .him .to; Jpuy 'United
States Savings Bonds.
,/ /
1
(Special to The Financial Chronicle)
you
have, in one way or another,
helped us in the sale of Savings
Bonds
to
the American
public.
proper
B.
organization
your
sure
DETROIT, Mich.
formed
has
Donald B.
—
D.
B.
Fisher
Company with offices in the Buhl
to
engage
business.
rities
in
Mr.
the secu¬
Fisher
was
formerly with Baker, Simbnds &
Co. in the trading department.
Barrett Merrick Co.
so
.
part
and
just
Appoints Officers
b.y saying that
manageable form and to ad¬
our operations from monthin
to-month
such
a
way
to
as
help and not hinder the economic
of the United States,
seeking
There
has
no
new
observance
niversary
of
of
the
ander Hamilton.
the
birth
200th
an¬
Alex¬
of
We
owe
a
deal to Hamilton.
It
was
the
force
of
his
ality
&
Co., Inc., 35
Street, New York City, an¬
nounces that John B. Charlock has
Wall
appointed vice-president and
been
Kimball
Herrick
and
Richard V.
Miller assistant vice-presidents.
MLCerkra Joins
LairJ i Co. in NYR
just been
organized
Federal Commission to plan for
the
Barrett Herrick
we
objectives.
We
are,
in fact, following the
sound traditions of our founding
fathers.,
traordinary
:
,
conclude
me
continuing Treasury operations
as to
get the debt into sound
great
ex¬
person¬
which probably turned the
of
tide in winning the acceptance
Theodore
H.
Gerken
has
with
Laird
associated
come
was
of
changes, in their institutional re¬
department. Mr.' Gerkert
was
formerly with Investors Di¬
search
versified Services, Inc.
.
/
LUCKY D URANIUM MINING CO.
of
BOUGHT
—
in
the
the
adjustment,
private
slack
left
government
ductions
in
activity
by
to
to
en¬
take
SOLD
—
QUOTED
active
spending and
inventories.
were
ease.
Tax
of
HARDY & HARDY
ESTABLISHED
reductions
debt
11 BROADWAY
manage¬
ment, the important thing
no
Request
re¬
,
offer
on
There¬
put into force.
the: side
Report to Stockholders now
Available
reductions
fore, the Federal Reserve System
turned its money policy to one
of
Fourth
was
to
interference to the stim¬
Telephone WHitehall 3-4490
•
&
61
Broadway,
New
York City, members of the New
York
and
American Stock Ex¬
-
When it became really
be¬
Company,
the turn had come, the
force
courage
1
the
making and keeping the
was
On
was
(
fiscal and monetary
abruptly changed. The
problem then was to cushion the
problem
FC
Address
bank
■
period of readjustment
clear that
Tel. HUbbard 2-3790
Name
in
The
inevitable.
/Teletype BS 128
people
the
make
'With respect to Savings Bonds,
a
policies appeared to be ef¬
control.
up
Street, Boston, Mass.
of
management
to
made in
violating
use
:
increases
this program.
policy
30 Federal
Sys¬
inventory boom be¬
gan to flatten off.
The bulge, in
consumer credit was checked. De¬
fense orders were brought under
Investment Securities
sales,
been
substantial
a
stricted
are
,
The
McCoy & Willard
Bonds
progress
allowed freedom to
further
fective.
APPLICATION
trying
are
we
steady
broader
a
encourage
year.
Let
critical
The 3*4% bond issue
much greater production.
CIRCULAR
and
An
eventual collapse:
an
pro¬
speculations.
distributing the
are
Treasury Is Following Sound
Avoided
this
found
forms
put
once
of
attractive
We
Savings Bonds to individ¬
H
meets
Economic Collapse
avoid
both companies
toward
To
*
and
came.
(3) Debt management sought to
stocks of
started.
Traditions
,
brought^jnto
,
debt into the hands of the
not
was
made
,
collapse
its powers.
Both
companies, partners on some acreages and
independent as to others, with substantial production from
wells recently completed
(natural gas in West Virginia
and Oklahoma) are embarking on extensive further drill¬
ing. Based on results to date, the companies' officials
expect that within the next few months additional wells
bonds
we
changes have
the
(2)
ducers of NATURAL GAS.
completely.
What v/e are doing today in
the management of the debt is, in
principle, exactly what Hamilton
♦.
the regulations. Of special inter-,
est is the action in making the E
govern¬
wholesale
in
down
credit.
will be
uals.
eral
.
tem
potential to become outstanding
for
open,
sales of
spring of 1953 marked, in
This
and
necessary
bank¬
a
belief, an economic turning chase
by personal trust accounts
point, a culmination of the infla¬
beginning the first of January
tion
v^hich began with. Korea.*
this
SINCERELY BELIEVE that
have the
must have
my
(1)
BEN FRANKLIN OIL & GAS CORPORATION
the
suc¬
tribution of the debt by increased
long
com-
LEXA OIL CORPORATION
and
floated
was
we
the public debt is a
obligation that must be
honored
issued
be
objective,
market
progress
of
■checked.
WE
collecting
by
That
(3)
sacred
tribute to
„
doing damage to recov¬
Hence, it was possible to
more
boldly toward the
freely
'
The
budget
(2) That
a
the
-
.
simple:
cessfully.
and/business
away
could
3% 40-year bond
bonds
were-
bonds
fundamental
a
billion
$1%
long
move
of '78-'83. Then we
driven
into "7 the
bomb
3V4%
of
we owe
ing system to manage the coun¬
try's currency flexibly and in the
public interest; /
,"//
y
During this whole period when
We
its
ance
ery.
that
correct
to
very
hind
refunded.
about
But, above all,
(1) That the country must bal¬
without
unless you adopt
inflationary price-
worse
tion that the
you
an
Treasury
your
area.
mon^h, with a stronger
situation, it became clear
business
that
in
by talking in general prin¬
ciples.
The
as
Last
a
the mercy
maturities
mechanisms of a man¬
aged economy. In any emergency,
the raising of new funds would
be hampered by the mass of ma¬
It
tell
by
at
On eight occa¬
within the bank
ways
on you,
istration
mean
or
business, or
a
are
market
of
An Illustration
can
sensible
a
pegging
economic progress.
Perhaps I
or
You
the still
but raising it in
that it will assist, and
the
not
individual,
an
form,
damage,
is
spite
a
were
sions in late 1953 and during 1954
the debt was extended, but al¬
one
arrangement for the debt of
country.
If
than
before the
That
year.
within
callable
or
dangerous
country.
financing
state,
a
consideration
raising
States
with
forms
is that the
ours
to pay
ions of life.
fontributes much to the satisfac-
Financing
that
difference
second
non-Federal
going
into
pension
funds,"' insurance
savings
banks
and
companies,
due
ing
goes
side of the shield
the other
On
we
was
ability of funds.
50% of the marketable debt
turned
the American way of life
telling you how much we ap¬
which we cherish is the mainte¬
preciate your help. We have sel-,
nance
of peace among ourselves
dom seen an occasion when the!
and our friends, and our first and
whole financial community joined,
highest duty is to do all that we
so
wholeheartedly' in making a*
of
maturity period, without any un¬
desirable pressure on the avail¬
present
ago,
pour
aspects
are
both salesmen.
Burgess
time
of Treasury
Aspects
-
debt.
R.
lake
man¬
agement
of;
the
public
W.
only
working
are
this
we
who1 apparently impersonal operations
we carry out.
Treasury
on
of satisfaction if
sources
sit back
and contemplate the human re¬
sults of the vast, complicated, and
have
common
in
'
in
us
Municipal; these
the
Philadelphia
deal
great
a
of
the
in two years
came
great
a
in
great debt for starting this
off with a tradition of
sound
money.
His
principles
as¬
It was not
a
practical situation;
will assist and not damage the steady flow
problems of other borrowers.
Gradually, beginning in Sep¬
-The long-term objective was to
of economic progress. Gives illustration from recent Treasury ^
1953, the intermediate
spread the debt. Our huge mar¬ tember,
refunding of problems involved, and points out, as new devel¬
market
opened up and further
ketable debt is crowded into the
opments: (1) reduced government spending; (2) renewed in- *7"~, next 15 years, with the exception steps were taken in distributing
the debt in the two to nine year
of the 3ViS sold in 1953 and the
dependence of the Federal Reserve System; and (3) a debt-
further increases in bank credit.
was
country
raising new money
management policy to avoid
youth.
He
lawyer
enough taxes to pay its bills;
pects of the situation.
a
Constitution.
our
financing in the summer of
sues.
timing illustrate
problems
the economy—
in
This great operation and
1911.
in
forces in
ulating
had issued since
we
spring of 1953 and the long¬
est Treasury bond since the Pan¬
ama
Canal 3% bonds were sold
the
In calling attention to
eral economic situation,
$14 billion
a
operation.
refunding
BURGESS*
By HON. W. RANDOLPH
Bond
Thursday, March 10, 1954
...
4
1932
NEW YORK 4, N. Y.
Teletype NY 1-960
Volume
Number 5410...The Commercial and Financial Chronicle
181
(1133)
the
/P
Steel
The
Electric Output
'''
Carloadings
•
k
,
•
Commodity Price Index
and Industry
Business Failures
Auto Production
versary.
Re-Orientation Needed
Aggregate volume of industrial output for the nation-as-ain the period ended on Wednesday of last week declined
into its basic raison d'etre
1954.
its
This
claims
came
All
but
like 1954 week brought 241,596 claims.*
four states reported reduced first claims for jobless
•
trend of
since the Jan. 9
In the week
new
'
jobless
the
broadcast
dealt largely with market pricing.
the references to the mar¬
of
ket's price level, either in valida¬
tion
or
distrust,
by
Exchange
in¬
formation
for
Presidents
Funston
tion.
(For
fessed to be
Senate
Com¬
of
Stock
S. Res.
and 97 read: "To investigate
with
clause
view,
a
.
taxing
power
powers.")
'■
scrap exports,-according to ;"The Iron- Age," national metalworkirig weekly- this week.p c
;•
;-V.
•
There is plenty of reason- for concern. Steel demand is mount¬
ing. on: a broad front; with-March production likely to establish
an
alktime record-for the industry, at least on a, weekly basis,.,
over
other
or-
;
-
■
also
are
rection
and
ceedings.
the
•
typical
this
the
phase
clispensers).
need
of
and
probably for -the month. Mills this week will operate at ,92.5%
; fined areas. ' •
;
of capacity, up one*, point from last week's revised rate.
)'
i The
upturn is hot just a spark but it is good for the first six:
Preliminary Education Lacking
months and probably'the third quarter and beyond.- Behind it is
For the Study to conform to'
the basic recovery of the economy,/. seasonal .influences on the
serious and proper purposes, the
market and attempts at inventory-building by consumers.
Senators'
on-the-spot
education
' Scrap is a red-flag
subject for the mills just now. Prices V on the highly complex and tech-have been rising despite efforts to halt the trend with more hot
nical matters at stake should have
metal from blast furnaces. The problem has been aggravated by
been preceded by thorough stud¬
mounting export demand from Europe and Japan.
The export
ies, analyses and ordered recom¬
market has been a heavy drain on prime grades. "The Iron Age";
mendations by the expert and ex¬
scrap composite price advanced 83c to $37.58 this week.
perienced agencies, including at
;
; The potentially-explosive scrap market is responsible for pro¬
least the SEC, the Federal Re¬
posals to limit export of prime grades and increase export of
serve
Board, hnd the. Treasury
secondary material. The United States Department of Commerce
(re tax aspects). Instead, educathis week issued new regulations covering scrap exports.
tion has been offered via a mot¬
The government has a stake in the battle, too.
Any move
ley string of witnesses briefly and
to restrict exports to our allies is bound to come under close
summarily covering the broadest
scrutiny of the State Department, which will have a lot to say
and most intricate aspects of the
about what is eventually done, states this trade authority.
entire financial
and political —
Meanwhile, steel demand is pushing toward a peak that may
world; often with not more than
not arrive until next month.
The influx of new business during
planned
legislation
and
The
,
•
stock
market's
he
not
or
gets
the
in¬
as
Piesident McCormick—
clarifying.
hardly
supplied to the Com¬
of
advice
Winchell's
Mr.
sell?
to
di¬
; *
♦
said
is
It
Washington
this! inquiry
on
pos¬
through
of
in
♦
or
publication
reply
porter's inquiry.
true
to,
a
he
is
re¬
Whether this is
not, and even if the Sena¬
tor- has since come to like the
practice.
that
surprise,"
"by
unexpected
off-hand
an
X
Fulbright became started
Senator
is
behavior
„
side,
to
X
for
.
Winchell's
publicize Exchange
officials and "other insiders" who
have
made
market
profits —■
threat
his
Incidentally, what would be the
pro¬
the
,
Mr.
from
And
r
is
-
example
pronouncement
-jr
sible
the
over
glamorous tipster in such
great numbers (and in preference
to the host of other information-
mittee by
legislative curbs
proceedings
on
defense
business
profits
as
have already revealed themselves
now ."revealed"
by stock market
as being off-the-beam in devoting
Actually, defense .'profits
so
much attention to
the price" gains.
either are or are not being treated
factor along with a host of other
extraneous > elements
in
ill-de-» properly by existing *>r otherwise
In
Mr. Winchell or de¬
citing
the
American
Exchange's constructive
counteracting floor behavior; the
real significance is the
public's
avid following of this self-confi¬
Stock
minor
purview of the
A
,
Confusion
various
phases of confusion
the
Federal
under
V
•
'
There
.
recommending
to
legislation,
necessary:
..
.
.
of
Mr.
castigating
effect
Manifestations
56
for
toward
In lieu-of either
fensively
whether
Exchange practices, the
enabling
pay
Walter Winchell.
formation
solely occupied with
public's hysteria) have been
intensively and continuously high¬
lighted for public attention.
May
investigation
week, when they totaled 413,500.
ended Feb. 19, the total of idle workers receiving
McCor-
the
1934
mittee's
Wilfred
A.
and
mick, and by Professor Galbraith
(by implication, although he pro¬
legisla-
new
exhibited
attitude
dent and
Questionnaire
And
•
dropped by 66,400 to 1,848,800. " A year earlier
the total came to 1,915,194. Forty-two states reported reductions
over the Feb. 19 week.
•«
\
V
Steel producers are worried about scrap. The mills are fight¬
ing hard to ease the pressure on supply and price. It's shaping
up as a tough battle. Top-level meetings in Washington last week
and the pressure referred to above provided the clue to the hassle
state
move¬
on
gathering
generally downward ever
claims has been
judgment
future
the purpose
California,
Pennsylvania and New York. Part of the New York drop was
attributed to the closing of Government offices on Washington's
The
disclamed
market's
founded
to 212,070. The
Birthday.
and
be
must
and
the
ment; on the other hand, his pre¬
liminary
key
press
conference
gressional inv e stigation
The biggest reductions, each over 3,000, came in
pay.
omy
Con¬
a
the
one
about
in mind
that
the total to 216,500.
the lowest since the week ended Oct. 12, 1953, when
was
of
coverage.
borne
26 brought
Feb.
well
as
area
It should be
While pressures for delivery of vari¬
ous steel products are normally increased in early March, current
demand is greater than seasonal and the heaviest since mid-1953.
Jobless workers' new claims for unemployment compensation
declined to the lowest level in 17 months, the United States De¬
partment of Labor stated. A drop of 25,100 claims in the week
29% higher than a year ago.
ended
the
as
Although production of steel ingots eased 1 point from the
previous week's 91% of capacity operations, tonnage output was
the
Winchell
Mr.
In the
Chairman, whereas
hand, as in his open¬
ing day statement, he affirmed the
necessity for the preservation of
the public interest in a free econ¬
of
case
on
Significance of
Again, fuzziness permeates the
appraisal and forecasting.
seems
approximately 7% above that of the same
was
taking stock of the Senate's
inquiry into the Stock Market, it
appropriate now to inquire
whole
iji
..
The Economic
In
week
,
THE STOCK MARKET STUDY
J
fractionally, but
hearings
Montgomery Ward Chairman
Avery's call on the committee to
investigate his proxy-fight ad¬
By A. WILFRED MAY
Index
Price
the
as
Trade
State of Trade
Food
of
for
a
personal
axe-to-grind;
ranging from efforts to make po¬
litical capital to such instances
Production
Retail
exploitation
5
idea,
forthwith basically re¬
should
orient the proceedings, clearly re¬
-
irrelevant to the issue.
'
,
,
Likewise
from
•
a
;
factor
the legitimate
-
i
.
,
'
;
diverting
objectives is
the
define
form
objectives,
-the
thereto.
area
\
and
*
;
-
.
«
F. W. MACDONALD & CO., INC.
ANNOUNCE THE
*
some mills.
means
that mill backlogs
a
level
with
the
national rate.
are
Some larger mills
is
BROADWAY, NEW YORK 38, N. Y.
BArclay 7-8100
and detailed questions
years, is not scheduled to
until way back, as tne next
20
appear
to
Complete Brokerage and Information
witness.
last
Commendable
in
dented
it is unprece¬
as
Services
the
is
country
this
on
Canadian
all
Exchanges
in
following
timing of this market inquiry,
a
.
r!
.
^Automotive production in the United States edged
,
market crash
?. •
higher in
to the
trast
Continued
on
page
than
March
(as did the Pujo
14, 1955
Investigation after the Panic of
1907, and the Pecora Hearings
and legislation post-1929, in con¬
on
ments, concludes this trade journal.
rather
preceding
broadening base of demand and uncertainty over deliver¬
tending to compound market activity. The psychological
consumers is encouraging ordering for future
require¬
The
ies
OFFICES TO
the general
for
capacity or beyond.
effect
150
Chairman of the
Commis¬
sion, which has been living with
at near-
are
THEIR
Securities and Exchange
increasing rapidly since
all production equipment is not being brought into play imme¬
diately. Deliveries are becoming more extended. Products that
two weeks ago were running 10 days or less ahead of deliveries
are now extended to 60 days or more at some mills.
Smaller steel producers are increasing their share of the
general prosperity. Their ingot production rates are rising toward
This
The
attending.
■,
Senators
Committee's
the
of
two
the last two weeks ranges from 5 to 25% more than actual operat¬
ing capacity at
OF
REMOVAL
—
.
54
But on the other hand, the
have
proceedings
present
in
deficient
been
recurrent
their
We
market's
into
existence
between' emphasis
the
the possible need
islation.
This
of
are
con¬
the
price level and inquiry
fusion
abuses
Mr. John B.
Charlock
and
for remedial leg¬
largely result J
may
''
appointed Vice President and that
has been
r.
....
so
pleased to announce that
on
from the fact that abuse has been
<
■.
the reforms of
Act).
M'My
m IMVISIHENT SERVICER
/
traditional even-keel
in Britain as in the case
the Companies
timing
of
\
emphasis on market price
is the
habitually greater public '
interest in forecasting aspects, for
'
...
,i.
Mr. Kimball Herrick
agencies, and industry self-regu- '
lation.
Contributing also to the
undue
...
^
largely eliminated by the rele- 1
statutes, the regulatory
vant-
Mr. Richard V. Miller
,
have been
appointed Assistant Vice Presidents
whose front-page coverage a con¬
New York Stock
Exchange
Exchange •Son
Midwest Stock Exchange • Amerfot(t£5fc>ck
'
SAN
and other
*•
f
-
hading
1
FRANCISCO
BOSTON
•
•
Exchange
»
Los Angeles
seti&jjfy and commodity exchanges
SEATTLE
}
;
LOS ANGELES
•
•
•
NEW YORK
PORTLAND
•
,
•
'
venient
platform
'v
is
being
pro¬
•
•>
,
Jr
vided.
)
;
CHICAGO
HONOLULU
AND OTHER PACIFIC COAST CITIES
lock Exchange
Chicago hoard at Jrade
•
That Irrepressible Forecast Factor
In
event,
any
bright
as
Chairman
well as his chief wit¬
being caught between
stools, of serious legis¬
nesses -are
the
two
lative
inquiry, and
Barrett Herrick & Co.,
Ful-
market price
35 Wall Street, JXeiv
Inc.
York 5, A7.. Y.
con¬
discussion
of
6
The Commercial and Financial Chronicle
(1134)
ministration and the Congress Yol-
the
lowed
Over-Burdened Congress
By
EMERSON
By IRA U. COBLEIGII
predictions,
dire
more
might have embarked upon a
make-work
public
works pro¬
we
SCHMIDT*
P.
Uncolored TV Comment
For example,,
before.
an
1954 than ever
had the Ad¬
quarter of
every
Economic Problems for
„
A
This turned out to be not
It also
might have
the construction in¬
gram.
necessary.
Director of Economic Research
Thursday, March 10, 1954
...
,,
Enterprise Economist
,
Springtime tune in
and
TV, the reception color has received,
on
of certain electronic producers.
random current picture
a
over-boomed
Chamber of Commerce of the
Dr.
States
United
driven
Schmidt, characterizing the philosophy and policy of the
President's
point where such a boom in the
sector would have been
nipped in the bud and lead to
more
unemployment rather than
Economic
Report as "admirable on the whole,"
reviews various phases and problems contained in the docu¬
ment, and offers suggestions and recommendations. Praises
private
policy of Federal Government in refusing to be stampeded
into a "make-work" public works program. Points out "only
way we can pave ground for a rise in our level of living is to
put more dollars in new, well-managed profitable investment."
the
Chamber
United
of
Commerce
of
States appreciates
opportunity
the
review
to
mended
There
Dr.
E.
P.
Schmidt
and
quite
universal
force
contrary
increased
by
almost
to
expectations,
labor
the
only
In the light of these
ties,
would
who
is
able goal
ahead?
for
vil
report
the
of
in
Service
ernment
in
desir¬
18 months
what
the
national
gov¬
adhere
in
and many
Bureau of the Budget
other government agen¬
ports—to the point where the in¬
cies, just
like the
telligent
utive,
found
stand
most
government
layman
cannot
under¬
excellent,
economic
question
summarized
which
needs
for
the
beginning
will
we
to
of
on
an
shifts in
services,
for
later.
recom¬
party
>
for
gress
and
viduals
the
ease
rean
trend
of
the
of
omists
the
politicians
or
(2)
economic
future.
The
in
of
the
prediction
Chamber's
report
be
to
commended
of
for
deteriorating,
and
entitled
Chairman
its
the
Your staff director thought
enough of this to supply a copy
a
of
this
as
probably
a
we
deed, possibly slightly
that.
there
those
are
bold
so
tween
its
less
sure
When
on
the
our
all
of
was
A
1945, this idea, of
making detailed plans and de¬
tailed
projections
models
to
form
the
economy
in
was
should
which
projections,
then
would
or
become
credit
tain, from
gress
to year.
The Con¬
did not write this require¬
into
ment
that
year
the
the
Act.
President is
We
to
believe
be
com-
at
Feb.
16,
1955.
contracyclical
the
oi
put
times
other
stability
are now
by ,the
and
reaf¬
subcom¬
and
times
a
easy
credit
is'
rather
than
in¬
in
above the half way mark between
the moderate decline of 1954 and
inflationary peaks of the
war
boom.
In
fact, dis¬
posable income, is now at an alltime
high, and was higher in
and
Jackie, Americans spent $2Vt
bil¬
lion
into
,
profitable
wants
are
industries
new
Others
the
are on
because
existing
lines
may
lines.
new
The
less
at
capacity.
new
potentials
new
all
some
to believe
reason
that the rate of capital formation,
which
too
underlies saving,
low !in
the
Two
dec¬
The
ades.
Economic
their
Bureau
National
Research,
of
group
of
a
economists and noted
objectivity and freedom
from the ideological battle, in re¬
the
viewing
eight
last
states:
"It
decades,
ob¬
served. First, George Spelvin gets
more for his dough now than ever
before
bigger screen for less
challenging
fact that
most of the rise in tangible capi¬
tal per person came in the period
before
a
the Great Depression. Be¬
tween the 1370's and the 1920's,
per person
rose
consistent average
about 2.5%.
per person
this
recent
yet done
decline
15
years;
capita
capital
real
a
fairly
rate of
annual
Since the
war
capital
has grown rapidly, but
acceleration
much
the
at
more
during
on
than
not
offset
the preceding
net
balance,
only
Continued
per
reproducible
tangible
today is
has
moderately
on
page
38
be
perhaps
—
price;
and
discounts
available
heavily
fracture
manufacturers'
posted list figures.
And copious
credit
available
is
lean
with
—
long-verms
payments.
monthly
doesn't
reception
in
come
channels—it comes on the cufl!
on
it—color didn't quite
Let's face
it
make
last
In the face of
year.
Dredictions,
1954,
January,
circa
spectrum
showing
set would be deployed into homes
that
100,000
in that
only,
year
paltry 45,000
a
tint-type sets were actually pro¬
duced and the price tags, running
between
tainly
the
kept
who
And
out.
and
$775
but 45,000
grand,
a
grocery
a*
pays
advertising
in
millions
cer¬
clerks
channel
to reach
sets, even though those
be owned by "fat cats"?
listed
NYSE.
on
At
-
all
manufacture, and about onecoming from
broadcasting
and
telecasting
solid* ground in averring
is going to be another
pretty
that
1955
in
the key
income
posable
TV • sales=—seven
by present in¬
better
purchasing
consumer
is
factor
—
(dis¬
economic
power
the
term)—is likely to move into new
high
ground,
$290 billion.
around
Manufac¬
of
and
radio
sets, the apparatus for sending,
tubes,
most
appliances,
records,
recently,
and
air condition¬
room
1954 carried gross revenues
in¬
high ground above the $850
of 1953, and 1954 net of
around $2.50 per share
supplies
strong coverage for the $1.20 divi¬
dend paid last year on the 14,031,—
016 shares now selling at 44.
;
to
new
minion
.
Considerable
from
comes
and
900,824
leverage
here
$150 million in debt,
$3.50
of
shares
pre¬
ferred stock which stand ahead of
the
For
common.
the favor¬
1955
able
prospects may include (1)
larger cash dividends, (2) greatly
expanded sales of color TV, (3)
reaching new horizons in elec¬
tronic
research
(including prob¬
ably a new flat tvpe TV tube),
(4)
sustained military and de¬
fense
electronic production
and
sale, and (5) sales gross of $1
billion. RCA is still the authentic
t
leader.
Another
Philco
is
former
TV
distinguished
per¬
which,* in
Corp.
the decade 1940/50. vouchsafed to
shareholders
(1940),
7%
1947,
331/2 for 1 split
a
5% stock dividend in *
in 1948 and a 2 for 1
a
split in 1950. There
was
in
dividend
stock
also
5%
a
1954
1951.
started off well and Philco would,
hit
have
doubt,
no
new
a
high
in gross, and perhaps in per share
net, had it not been for a month
and
strike
half
a
quarter.
the
in
June
-
s
.
this
ators, deep freezers, washers and
and if we're to see 1,150,000
that
buyers,
essary
shelf.
for
seme
70%
of
TV set will be as nec¬
a front lawn, and more
perhaps than a book¬
a
as
"knot¬
hole" sets, and supplying two or
more
sets
per
home
(allowing
Junior
to
view
Howdy Doody,
Replacement
.
whilst
Mother
tlers)
are
more
a
consist
the
our
sider
I
items
tured
TV
stations.
homes put up this year, con¬
from
factor,
us,
new
probably
this sustained in¬
it should be noted
housing boom hasn't quit
Apart
come
on
National
should
prosper, by virtue of its excellent
reputation and sales distribution
in
TV sets,
radios for car and
home, phonograph combinations,
and a broad line of appliances, in¬
cluding electric ranges, refriger¬
*
-
that
through
radio, and
television
170
its
Peering into 1955 (with a head
start of
two
months)
we're on
,
necessary
,
is
trade
current
three
or
should
trends
has been
several
last
perhaps the most popular
as
fifth
ers.
or
time
a
last
sets
1955.
year
for
TV
And they're still buying big
year.
in
to
and
radio
for
dications— and
capital
eco-
con¬
million
an
mone¬
a recovery phase.
The economy has moved to a
point
Korean
dollars
to
on
Miltie
running
tracts
th^n
used
There is
policy
stability."
We
living is
established
1952,^ outstanding
tary policy that will promote
nomic
in
struggle
our
Human
Just
new
a
around, waiting to be re¬
searched,. analyzed and exploited.
,
As
Patman
some
at
for
more
being born.
are
6%,?
Government,"
subcommittee
by
the high
•Testimony of Dr. Schmidt before the
Joint
Congressional
Committee
on
the
Economic
Report,
Washington,
D.
C.,
proof
no
outlay
and the multi-million dollar
100% of capacity, that gives us no
in
again
facilities, the
Broadcasting Co. (wholly-owned)
spectacular shows, and its network of 211
opulent
super
terrific
In
foot
broadcasting stations
clue to the need for
unemployment
should have, a
essential characteristic of
.
at¬
on
even
a
flexible.
restriction
the
to
economy
flexibility
of
Whole
facilities
be¬
neutral
and
threshold.
than,
ears"
and related sending
at
and
well-managed,
limitless.
be
prompted -that ;over enthu¬
siastic share appraisal of a quarter-
century ago. Today Radio is back
sixty
dollar
vast
the
from
Most
ground
level
investment.
and, in¬
"Timely flexibility toward
'targets
duty of the Administration
we
be
the
more
are
mittee:
the
called for detailed annual national
budget
be
firmed
saddle, an
American version of popular for¬
eign
"5-year"
plans.
The
Bill
—
well
The
room
our
for
sound
Douglas
con¬
as
employment,
upthrust in
raise
new,
un¬
more
254.
must
—
which
levels.
elbow
pave
put
1952:
when it is under
National
page
in
What
investment
to
surplus."—Sena-,
tor. Paul H. Douglas, "Economy in
the
points.
Employment Bill
introduced
When
but
there should be
economy are
these
therefore
8%,
over
deficit:
1946, others with a clear com¬
prehension of the steady fluidity
full
all
forward
and 8%, the govern¬
budget should at least bal¬
effects.
is
at
use
fairly broad basis is
can
6%
and
ance
of
dyamism of
the
When unemployment is
mental
Product, national income, employ¬
ment, etc., necessary to obtain
the goals of the Employment Act
and
for
governmental deficit unless
employment exceeds 8%
project in great detail the
precise amount of Gross National
,
is
that under-utilization
so
rough judgment
should not run
tnittee.
to
be replaced,
modernly equipped
as
Even
capacity
a
are
obsolete,
improved.
business
or
never
needs
Committee,
to each member of the Joint Com-
While
equip¬
it would like to be?
as
Ko¬
becoming
and
located and
analysis and
fact that it
Douglas, said in
submit
"I
that
ing."
.
plant,
steadily to
comrany
not
Senator
"Business and Economic Forecast¬
as
need
upgraded
ditional
the
existing
ment and commercial facilities
stampeded into taking ad¬
extensive steps to miti¬
gate the contractions of 1954.
As
1955
.
Our
of 1954 were the over-all adequacy of invest¬
alleged inadequacy^ ment.
steps.
The Administra¬
(4) The only way in which we
particularly
shown
were
the
thereby help sustain
the
these
was
Economic Report puts this matter
into proper perspective. The haz¬
ards
from
to
in¬
currently
prosperity.
Con¬
steps
to be
to others and
The dire projec¬
shrewdness
forecast
can
boom.
on
tion is
extent the Employment Act
is based on the
theory that econ¬
some
transition
of
through
habit,
through most
based
To
economy.
war
tions
both moderate and dire
pre¬
of the impending down¬
dictions
ward
the
and
number
a
even
years
Tomance
that
tubular skeletons) are
events, among the 30,000 and more
slapping each other on the back,
buyers on the monthly purchase
and
opining.
"I'll be
a
dirty
plan, Radio is the current No; 1
bird."
Yes, TV is our new cul¬ choice.
tural medium replacing Chaucer,
RCA .covers
pretty much the
conversation,
Canasta,' and,
in whole field of
electronics, with*
some instances, even comic books!
three-quarters
of
gross
coming
And it's big business, too. Apart
from
order to become income
vested in
we
Administration
took
gress
because
through
savings need
may
The
Con¬
partly
savings plans or because of uncer¬
tainty, still want to save.
These
(3)
their
always be¬
are
when incdmes decline many indi¬
Transition
performance last
year in terms of the Employment
Act ofl 1946.
A year ago, there
were
made,
dollars
private
of
savings
money
ing
note of
We wish to commend the Presi¬
minimizing the import¬
of
(1) Billions
of
Economic Analysis
dent, his associates
Why not raise
25
the * corporate
up
share;
a
from
"rabbit
to
of the share sensations of the 1929
towering
fabulous
not be able to keep a
triumph out of his gloomy
predictions.
Economic
more?
Without
the
party
in
power at any time must keep on
talking optimistically, regardless
of current developments.
The ar¬
dent politician of the opposition
be questioned.
may
demands
and
Spokesmen
future,
page 69,
these
belong in
expenditure,
goods
prices and costs.
be
of the
return
of
some
mendations
Report
exec¬
estimates
for
analysis is
to several
recommendations
Whether
business
make
must
revenue,
the
raised in regard
to
re¬
them.
While
the
eauipment
and
reasons:
jections. Tne United States Treas¬
ury,
plant
buying power; this is not
policies, the whole story for at least four
English < style —a
worthy of comment, rela¬
the generally poor writing
tive to
using fully all
already have. Why save
we
invest
ance
permanent Ci¬
generally
not
are
buving power?
rigor¬
ously to facts dnd reasonable pro¬
excellent
matter
we
and
a
UCobletgn
-
issue
But
determine
needed in precise terms?
Members
like,
about
always had a certain
magic
which
it
has
brought to the stock market. One
t e.'ji'n.a
n
ranging
ira
/"*
mil-'* the private
1.0
or
year or
a
Who knows
summarized
be
a
,
This" view
/
could
RCA has
market
by-. proving
^inducted
heard
have
we
mid-1953.
uncertain-'
dare
reasonable
a
which
of
since
which
what
are
view
labor*
lion.
ad¬
written
no
the
point
that
sets, era, it sold above $500
and then spent the next
beams*
(with
this:
The
entire
is
given
June,
philos¬
are
of
a
eco¬
mirable.
lack
much
ophy and poli ey on
the
whole
very ac¬
lion individuals from May to June
1953.
But in 1954, .from May to
past
nomic
lion
force increased by nearly 1.9 mil¬
example,
mil-
35
some
caused by
"purchasing power" is
credence in the Report—are
from
and
along to others.
move
through
agency cf
depressions
a
eco¬
The
year.
For
America
cans,
the
the
at
industry—you just take the
biggest,
Radio;, Corporation
of
yet
Ameri¬
but
stockholders
this
George
purchasing power is
of
tots
for
time. It's easy to start off in
same
"hep" to
Gobel
got
im¬
the
e n
that
con-,
curate.
events
the
of
While
investment.
new
11
o
detailed
be
surprises,
and
projections can never be
of the
nomic
H
dividends
The
haven't
recognized, the simple, naive view
to
most
the free
of
ventures, into
portance
bound
are
in
tion
whimsical
panies that are, each day, expand¬
ing video viewing and building up
expanded recep¬
an
the soci¬
ological arena, shows an excellent
appreciation of the key role of
entrepreneurship, innovation and
avoiding this type of
tinuous
sharp,
c o mp r e h ensive
national
getting
in
Report,
Economic
1955
of
It
excellent.
survey
The
is
constitutes
and
somewhat
video panorama, perhaps it's time
to
talk about
the specific com¬
pretty good job in the U. S. A.,
a
world.
spite
projections.
dent's Economic Report. In terms
of economic
it
wow
TV
this
After
hasn't yet
started to
them in Pakistan, it's doing
While
-
the
Presi¬
analysis,
in
'
less.
the
The
the
to
line
of
out
costs
and
scarcities,
created
dustry,
of
hate
a
to
of
watches the wres¬
becoming
more
and
sociological must. And,
predict, but think
dishwasher,,
combination
of
re¬
For
conditioners.
air
elec¬
net sales.
Philco
100,000
has
shares
funded
no
of
$3.75
debt,
preferred
and
3,771,850 common shares sell¬
ing on NYSE around 40. The longstockholder in
term
has
PHL
en¬
unbroken dividend skein
since
1926, and many hundred
percents in capital
gains. PHL
joyed
an
management has had
putting
bined in
Co.
big economy unit of
Defense
tronics account for around 19% of
frigerator, deep
freeze, clothes
washer, room air conditioner, and
radio-TV-record player, all com¬
one
Philco
year
a
a
record of
lot of vision into tele¬
vision!
Emerson Radio and
is another
knotty pine and shaped like Betty
program
Furness, for a boxrtop down, and
170
monthly
payments
of $10.
total
Oct.
Jules Verne roll over!
for
for
reception,
the
31,, 1954
the
first
Phonograph
household
and
fiscal
passed
-time,
name
its
year
in
sales
ended
$80 million
although
its
Volurpe 181
Number 5410... The Commercial and Financial Chronicle
share 'net
per
did
not
advance
President of the New York
which earned 97c
in 1929 and 1954.
Top management shows its belief
in
the
enterprise
by
owning
around 18% of the 1,935,667 com¬
mon shares, selling NYSE around
tioning in
three, other interestd .like to
activities
activities
tant
in
radio,
the
TV
our
relations with
,
siock
rect
insured
responsi-
and
1in
;
of
sets
out
tubes;.'.fe
its
brand, and
alS
own
extensive line
an
•
.
.
,
.
mer- i
'
r
upRaandGCdowny'
above
$180
Raytheon
Kaytheon,
which
of
which
1-
K.eitb
uDstoo
Wprfwnin^nomila1
thp
JLn?,£f of
'it011 ^ i
Tht Rrnnkines
60% 4
10=59
60%,, Institution ^ early 1952. Tndl
m
Indic
t
hv
pariv
close
storv«.
isSLiwvot sells showed>
«iit
listed NYSE
profitwise. Stock
to
$12
a
have
The
are a cross-section of the
population — they are men
mtal
.
"7.
,
*
•
and women, old and young, farm-
,
level
Tung-Sol. derives above 60% of
dwellers,, factory
its sales from electron tubes, and workers and corporation execuranks third largest .as a manufac- tives—wishing to put their spare
turer
of
miniature, light bulbs.,funds to work, receive a return on
.Capital here ' was expanded by their money, and participate in
the sale in 1954 of 100,000 shares ."the growth of the country.
.1;
.
and
ers
city
.
,
,
of
$2.15
into-
preferred
,
1.74
(convertible
of
shares
Nearly
one-third - belong - to
^families earning 16ss than $5,000
co m mo n
ket,
sell
listed
on
our
or
1953.
1954
is
quite
selling
the
near -
000„
conversion-point
minute?
with
supply
$1.25
a
preferred
at
-
NYSE.
<
v
>
Electric
Sprague
in
traded
-
— common
at 28";
The most important single finddividend, and^ the jng 0f the Brookings Survey was
54y4>
both
listed that, in early 1952, some 6,500,000
'
individuals — representing
o n e
to the
at
familiy in 10—held shares in publicly owned corporations. -
Company,
Over-the-Counter
the
going along
From a public survey completed
nicely, tagged as the largest man-#n late 1954 the Exchange estiufacturer of capacitors. It is also mates that about 7,500,000 individan
important maker of precision - uals now own shares in publiclymarket, is
a company
These-
resistors.
items
widely
useful in electronics and
company's excellent reputa-
the
tion
for
production
quality
carried
has
sales
net
annual
-
$10% .million in 1947 to well past
$47
million.
A series of stock
dividends plus share sales to the
_
public, have
from
31,722
increased
iy_owned companies, tens of mils
.
common
in
common
par
no
1945, tot *1,241,945 shares today.'
Early and orig nal shareholders
,
f11'
i
gain
capital
position
is
°n
hog.
Balance
excellent and
highly
agement
stock at 47 with
djvidend
viewed
tial
than
man¬
respected.
an
$1.20
for
cash
should
growth
we've
and
outlined,
in
be
forth
a
bref,
v
en
-
profitability
,.
_
lines.
in
■
The
hopes
mayhap,
and,
i
their
.
4
electronic
of
a
GE and
particular
m
.
trade
.
m
Inch
x
?
Westinghouse,has been
field
of
the
here
are
a
of
investors
in
the
Quite probably
ones
mization
for
for investors m the
7
past decade.
financial institutions.
.
some
we've
touched
way
their
end
..
insurance
pension
funds,
foundations
panies
panies,
ment
funds,
companies,
investment
and
com-
and
endow-
mutual
savings
°InddpfrsoMrtrust tunds
administered
bv
bar^" owned
tinies.
value
market
of
$66
accounted
des¬
by
rise in
a
value, with the balance
bmion
are
stocks
conlmon
listed
Stock
on
and
the
Exchange.
preferred
New
York
These linstitu-
♦From
before
3,
a
the
1955.
statement
by
Committee
on
United
States
Mr. Funston
Banking and
Senate,
ment
decisions
people's
however, certain im-
Continued
by the record, neither
invest-
in different ways.
on page
46
This is not
offering of these Bonds for sale,
aw
or an
'
'
any
offer to buy,
or a
solicitation of
an
offer to bay,
of such Bonds. The offering is made only by the Prospectus.
•
$50,000,000
Pacific Gas and Electric
First and
listed
Company
Refunding Mortgage Bonds, Series Y, 3%%
is
answer
Due December 1,1987
.
many •
so
If
stock
more
>
sale,
Price 101.488% and accrued interest
at which people are
pects
Copies of the Prospectus
may
be obtained from
any
writers
only in States in which such underwriters
dealers
in
of the several under¬
are
securities and in which the Prospectus may
are
bright and
qualified to
act as
legally be distributed.
so owners are
Blyth & Co., Inc.
unwilling to sell their shares ex¬
cept at higher prices which con¬
fident
purchasers
There
pay.
are
are
willing to
periods when the
is true.
Usually • the most
persuasive
factor influencing sellers and buy¬
ers
with
respect to specific stock
Glore, Forgan & Co.
Eastman, Dillon & Co.
Go!dman, Sacks & Co.
hazard Frcres & Co.
Kidder, Peabody & Co.
Lehman Brothe
Merrill Lynch, Pierce, Fenner & Bcane
Smith, Barney & Co.
a
F. S. Moseley & Co.
Stone & Webster Securities Corporation
„
is the prospect of the company as
it
relates, to
future
^
profits
^
and
^
divide"ds- ,If most* investors be!>eve that the prospects are excel-:
lent the
price will go
up,
if most
discour¬
think that prospects are
aging the price will go down.
The
price
fore reflects
of
a
any
consensus
;
'
Union Securities Corporation
Hemphill, Noyes & Co.
*
Hornblower & Weeks
Carl M. Loeb, Rhoades & Co.
by
to its
as
transactions
(determine
,
the
,
^
Shields & Company
Shearson, Hammill & Co.
a
day in
prices
o*
Co.,
^
i
Fulton, Reid & Co.
determine
the
In
order
general
to
of
March
stock
,
IIooker & Fay
Lester, Ryons & Co.
try to
trend
prices, technicians have de-
Pacific Northwest Company
t
McCormick & Co.
single entity.
The Illinois
Company
Incorporated
McDonald & Company
-#n speaking of stock prices it is
important to remember that peoand down as a
Blunt Ellis & Simmons
Incorporated
J. C. Bradford & Co.
Croweil, Weedon & Co.
up
Spencer Trask & Co.
(Incorporated)
Schwabacher & Co.
i954
which
at
Robert W. Baird &
c"an2e-
move
Wood, Struthers & Go.
Central Republic Company
A. G. Becker & Co.
st°cks seil^not the stock Ex"
does not
Lee Higginson Corporation
investors
throughout the country. Investors
-participating in an average of
30 000
.
Dean Witter & Co.
Paine, Webber, Jackson & Curtis
,
lncoruo rated
formed
White, Weld & Co.
there¬
stock
tional holdings constituted 28%
Qf the total market value of all - Pie buy and sell individual stocks
shares now listed on the Exchange,
and that the stock market itself
Net stock purchases by institu-
different
affect
investors believe that future pros¬
this $66 billion
in stock owned
by institutions, approximately $48
experience, desires and
They are made doubly
difficult to evaluate because there
is no sure way of knowing just
how any one factor may affect
any particular person or any particular stock. A new twist in the
price will decline.
The prices
value
repre-
numerous
for,
the
mar-
aentin? net additional Purchases
Currency,
-
for
as
resources.
There are,
the price will go up. If more stock
is offered for sale than is bid
com-
PaKred ^ *3,2 this increase
"11ion in 1949.
About
80%
of
from maxi¬
corporate
total
a
billion held by institutions
are
human
to
much
rose
factors
.
is bid for than is offered for
^
bUlton
stocks
the demand for stocks and
These
Chart
1953
mvriad
and complex as the vast panorama
of business, national and international affairs, and as varied as
and * Poor's 480
50% in the 16
September
must,
we
the
shares of stock outstanding in the
reverse
esti-
is
in
half
mar-
Any
only
hands of the public.
-
it
of. 1954
shown
a
examine
ing that period.
in-
than
As shown
:
ma^d
upon
long
At-the
sus-r ket
expanded
general, topped by such stalwarts
as
business
American
is
enterprises holding
reasonable
tained
in
stake
indi-
through the ownership of stock by
for
spun
....
assortment of
rect
an
poten- stock worth another
$38 billion—
of
sort
]ions of Americans have
The
indicated
for present yield.
Today
wheel
of
;
more
sheet
7% million
individual shareowners in public-
the
1954
-
In addition to these
from
.{Jf'*
reduce the supply available dur-
about the
and
and
year
crease
the Exchange were selling below
their book value in December
in~other willing to buy and sell securities
words, a net gain in three years are 3ffected by a multitude of
of 1,000,000 shareowners.
'
aC+
tors. There are periods when most
all> owned, corporations
are
has
the suDply
Despite the fact that most listed cold war, an important law passed
stocks
showed
substantial, in- by Congress, a Supreme Court decreases during the period, more cision, or a change in prevailing
than 40% of the stocks listed on interest rates may, and often does,
from minute toi
demand.
corporation
exceeds
factors which have tended to in-
industrials, and utility
stocks showed very little change,
more
an
Exchange.
even
buv
given mo-
Basically, the
and
past
syeaf-end. However, not all
had a comparable market
.
day tofday,
to
therefore
value.
course,
rose
from
through Nov. 30, 1964). Much of; annually. About 45% are memWhy Stock Prices Fluctuate
the $4,775,000 in new money thus ,bers\of families with annual in- [
Perhaps no phase of the narealized,- goes to expanding. TV tcome of between $5,000 and $10,- tion's market place attracts so
tube capacity.-The item to watch, 000. And only one-quarter are in much
nublic
attention
as
stock
here is the convertible preferred; families earning more than $10,7 prices.
Why do prices change from
Which
or
stock, will rise at any
To determine the reasons behipd the rise in stock prices in the
prices since Sep-
As
index
banker in
any
same access
buy
Prices
security, whether
«+£ exce\rs
there
observations
market
stock
rise.-Railroad
our member firms and
a
Stock
U. S. Government Bond
a
common
a
stocks
equal
advantage, and can be kept equaliy advised of just what is happening with respect to all stocks
can
general
Standard
months
our ticker system, each member
0f the public, whether a farmer
ment, the
the
stock
also
aggregate
Through the nationwide fa-
or
in
tember
I,
.
the
of
crease
j.^JS ?ur obligation to these indlvldual ar?d institutional invest°rS
Pr°vlde and maintain a fair,
open, orderly and continuous mar^ket.
jn South Dakota,
Virginia-has, at
Affecting
one
particular
desire
its apparent
to
possible, of
are
billion, of
funds,
rapidly.
ne-
price '
fact basically determines whether or not the price of
it be
particular stock is too high in
Certain
corporate stock.
grown
Only
any
whether the price asked for
relation
Investment companies, particu-
larly.' mutual
when
L stetl XTheflhe stS ^XtC^r«£*
assess
esti-
*
*
influence
three
proportionally
were
Factors
31, 1954, for
the Dow Jones
imnnssihle
a]rnft(,f
fore,
non
were
were
rapid.
more
dajr
60%.
over
,,D
Tt
estimated $3 billion was
an
vidual stockholders, the survey cilities of
the upgrade
increases
241 closed unchanged.
example
tp
funds
pension
there
stock
when
by
Ve'XrtTes
Dec.
when
1943
increased
Moreover
.
myesimenv
assets
!
1954.
over
which
On
one.
June
stocks went up,
Fvphondp
one
are
$7- bijlion, of which $800
million represented stockholdings.
By 1954, these pension funds held
f?-
for
does
mentS seemsTo be'fin
a
Q+nnir
given
any
to
prices
,
on
increasing 54%. 'There
rise from April
14-month
a
1942
and" atthe same'tim" ™arket as,a whole is l°° hi8h °r
iniSeaSnaemDhlsi?S 1°°.^ anyone can do Tkc
a"y glV6n
best .that
Jo
.
<ni
1947
million in
million
was
^eraje advanced moderately. 680 Jme:: that <is,■ whether pr not -uie
is, wneiner or noi the
WPrit
™ declined'and
jLimei'
declined and demand of all the investors who
stocks listed
were
vnrir
,
conditions
example,
The investing public is made up increased from $2.6 billion in 1949
.primariiy 0f two groups—individ- *to about $6.4 billion at 1954 year,yal shareowners and institutions, end.
.
averages,
the
totaled
1954
bonds
sales
ranging from $54
prices
and pur-
the prices of some stocks move up,
and others go down, depending on..
about
listed
{or
_.
Auto
_
to
the
;
vvfitn c>uppiy Krnn^'»
9?mnfv orana
western
names.
.
mated to*haVechkd total assets of
U.
a"a
vember 1944 to mid-1946 resulted
under-
is
-
turns
not
years
hasD laced
.Raytheon:,is also the fifth largest
and'
in
Pension funds
reread
a
producer ot radio and TV
do
change were selling below their
1946 highs.
"
Regardless-of the movement of
:of the type of fiduciary that has
^
is
thn Mow
have other di-
government
'i
nn
hearing aids. biliUcs to the ,
large contractor for the investine nubwith#-backlog (1954 lic :< order-to
year-end^ of about $120 million, "provide
a
partly,'in
research* .and
partly hroad
fair
production, in firccohtrol, guided
orderiy
and missile and navigation equipment.
n
f:
linil<!'
RTN
investors
about $2 billion
•
and
widely used in such asthings as Geiger counters,
walkie-falkms
of
New
which the Exchange serves on the New York Stock Exchange
on the
York Stock Exchange.
investing
''4-Jf
.the
the
are
sorted
who
83% above its 1946 peak, 46%
the stocks listed on the Ex-
each
tional
mem-
our
elec- <pUblic and the
tronic trade. The first is Raytheon,,
^nation. Be-'
probably the largest manufacturer
y0nd
these
of- special purnose vacuum
tubes.—services
w e
These
Stock Exchange
and the price level reflects pub-
manner
panies I have pointed out specific
wavq in which thftFYhhanflP cpnmc
waysdn which the Exchange serves
-
men-
imoorimpor-
are
are
frequently mislead-
are
7
the length nor the extent of this
16-month rise in stock prices was
unprecedented. The rise from No-
these
On Dec. 15, 1954, for exampie, when the Dow Jones average
Contends the stock market has been func¬
orderly
an
paniesThlvt p^ntTd'oufspe'cific
-
are
But
as
and
pose.
lie's appraisal of present and prospective business conditions.
In
15.
whose
wnose
C.,
stand their construction
Funston, expressing approval of a study of forces which
have influenced presenl stock market prices, tells why stock
prizes fluctuate, and compares stock market price levels in
share last year (fiscal) and paid
60c should do substantially better.
companies, we
such
—
E.
Poor's.
those
to
ing
Mr.
a
ing
&
S.
was
profitably.
tion
uon,
Jones,
Standard
By G. KEITH FUNSTON*
and new transistor radios
expected
to
sell well
and
'. 'There
Dow
averages
sales;
common
the
Reflects Investor Confidence
•
electronic research and production
should create around 25% of net
ERP
vised various averages
Present Level of Slock Prices
correspondingly
due
to
some
tough competition, especially in its
air conditioning and TV-depart¬
ments.
This year
TV sales are
moving ahead:) extensive military
are
(1135)
March 4, 1955.
i
'
William R. Staats & Co,
•
Ehvorthy & Co.
Hill Richards & Co.
Clement A. Evans & Company, Inc.
Loewi & Co.
First California Company
'
Incorporated
Fairman, Harris & Company, Inc.
Carl McGlone & Co., Inc.
Sutro & Co.
Stephenson, Leydecker & Co.
1
Financial Chronicle
The Commercial and
(11^6)
8
General
Stoehr, Inc., 80
Batteries Inc.—Data—Lewis &
Dry
Broad
Thursday, March 10,1954
...
Happy Birthlay
Street, New York 4, N. Y.
Company—Annual report and financial re¬
view—Dept. 1II-Jl, General Electric Company, Schenectady,
General. Electric
New
It
Kinndn, 11 Wall Street, New York 5, N. Y.
Holeproof Hosiery Company
pleased
interested parties the following literature:
understood that the firms mentioned will be
is
send
to
Ill
Williston
Canada
&
Kaiser
of
1955
"Investment
current
Letter"—J.
Provinces:
Funded
Debts
circular
Lucky.
.
,
»
Business
in
Review, Box 803-FC, Soldier's Field, Boston
Effectiveness."
tive
Missouri
Pacific
Wall
49
Street, New York 5, Ni Y.
Paine, Webber, Jackson &
Curtis, 25 Broad Street, New York 4, N. Y.
j
*
—
Over-the-Counter Index—Folder
showing
New
Saxton & Co., Inc., 70
Japan—Analysis in "Monthly Stock Digest",,
Ltd., 1-1 chome, Nihonbashi-Tori,
Tokyo, Japan and 61 Broadway, New York 6,
1033
Thirtieth
Street,
W.,
N.
Washington
t
•♦
•
New
Public
«.
•
data
are
&
Co., Incorporated, 150
Also available in the «ame
Oil Limited, International
Sylvania
Corp.,
American Encaustic Tiling
path,
—
Electric
Products,
United
Elastic
Bonanza
a
Street,
—
N.
Nut
bulletin
same
Packing,
United
been extensively written up recently, in numerous periodicals.
Vision
and
daring
have
been
Se¬
shown in this
the
are
data
of
North
on
of
and
M.
Oil
Oil
Company—Annual
on
Oil
&
Loeb, Rhoades &
Alvin Ruml Now With
Group to
Meet in Honston in April
Ungerleider & Go.
Mine—Report—L. D.
Broadway, New York 4, N. Y.
Friedman
&
Co., Inc.,
Association
ers
Analysis
Kippen &
Company Inc., 607 St. James Street, West, Montreal, Que.,
—
—
Canada.
Canal Assets, Inc.
—
Car memorandum
—
T. J.
Feibleman &
Company, Richards Building, New Orleans 12, La.
annual
will
convention
at
hold
the
their
Sham¬
state
ner
attendance
is
anticipated
Christiana
Securities
Co.—Bulletin—Laird, Bissell
120 Broadway, New York 5, N. Y,
&
Meeds,
Cinerama Productions Corp.—Analysis—John R. Boland & Co.,
30 Broad Street, New York 4, N. Y.
Commercial Credit Company — Annual report
Credit Company, Baltimore 2, Md.
Day tort
Power
—
Commercial
and
Power & Light
Ohio.> t*
Light Company—Annual report^—Dayton
Company,{,25 North Main Street, Dayton 1,
"
"
"f "
*
'
*•"
■
'
'*
fairchild
'
Engine and Airplane Corporation—A* reappraisal—
Detailed analytical
brochure—Selig Altschul, 25 Broad St..
Nevv York 4, N. Y.
;
,
52
Broad¬
York
Stock
that
Alvin
Exchange,
Ruml
is
in
and
was
Arthur
prior
formerly
a
part¬
Wiesenberger
thereto
was
Joseph Walker & Sons
Ceiebrate 100 Years
40
years
later,
at
a
net profit
its. program
But
dends.
price is $84 per share/
Current
earnings were around share and dividends $2
per share.
Investors should buy Aluminium
Last year's
$4
per
Limited:
associated with the firm.
&
with
(1) If they want a stake in the
world's lowest cost aluminum pro¬
ducer*
(2) 'if they believe in the future
widening uses of the metal as its
price cheaoens; *
A. G. Baker & Co.
W. F. Dondero WHk
If they believe
(3)
ment in
J. Batik & Co.
a
ducer is
an
invest¬
material pro-,
good safeguard against
large
a
raw
inflation; and
"' >
(4) If they agree lhat .it is a
bers of the-New York Stock Ex¬
SAN FRANCISCO, Calif —Wil-. good thingUo have some money in
change, are celebrating this year- liam F. Dondero has become as¬ Canada, -America's new frontier.
the
100th; anniversary
of
the sociated
with: J. Barth & Co.,
f ou ndirig of the firm. t In
cpimec- 404 Montgomery. Street, members
Jackson Adds to Staff
;
tioh With this the company has:
the New iYork and San Fran¬
(Special to The Financial Chronicle)
published a handsome illustrated: cisco Stock. Exchanges. Mr, Don¬
brochure tracing its history and dero was*, previously with First
BOSTON; Mass. — Thomas B.
the history * ot* Wall Street dur¬ California
Company > Incorporated Sapienza has become connected
with Jackson & Company Inc., 31.
ing the century.
:r . •
in their trading department.
Joseph Walker & Sons,
120
Broadway, New York City,'mem¬
•»
Dependable Markets in
New
Mr. Ruml
Co.
year.
Co.,
New York City, members of
announced
Hotel, Houston, April
24
through April 26. A large out-ofagain this
1
the
now
rock
Chase National Bank-Bank of the Manhattan Company—Anal¬
ysis of proposed plan of merger—M. A. Schapiro & Co..
Wall Street, New York 5, N. Y.
way,
&
But
t>f $40 mil¬
calls for'
much greater expansion at far less
cost per unit of production than
what has been spent heretofore.
That is why it holds such brilliant
promise for its stockholders who
have patiently seen their com¬
pany's earnings plowed back into
expansion at the expense of divi¬
lion.
Secretary, Skelly
Ungerleider
at a
spent in creating its "aluminum,
empire."
.Today it is a profitable-enter¬
prise, making and selling $300
million worth of ^aluminum per
Company, Skelly Building, Tulsa 2, Okia.
HOUSTON, Texas—The Texas
Group of the Investment Bank¬
Canal
private
enterprise,
Aluminium Limited, had .raised,
without government assistance, al¬
most 4 times that amount,.to be
Texas IBA
National Linen Service.
Government
$250
purely
annum
report—The
{j...
•
.
^ccttvilics
,
(Special to The Financial Chronicle)
Milk Street,
DEPENDABLE MARKETS
With W. F. HuUer
(Special to The Financial Chronicle)
I.
'
'
BOSTON, Mass.—Albert W.
•
Member
Over-the-Counter
NJLSJD
Dow, Jr., is now with W. F. Rutter
Broker and Dealer
Securities
Material and Consultation
2-
2400
Menibers: N.
74
Y. Security Dealers Association
Trinity Place, New York 6, N. Y.
.
.;
NY 1376
61
DETROIT, Mich.—Harry H.
without obligation
Jones,
Jr.,
and
Donald R.
Laren have become
Broadway, New York 6, N. Y.
Tol.s BOwling Greea 9-0187
Head Office
MacArthur
(Special to The Financiajl Chronicle)
Japanese Stocks and Bonds
Troster, Singer & Co.
Incorporated, 19 Congress St.
With Kenower,
on.
IIA
.
enterprise. In 1913
States
Panama
time;
all
this
Carolina—Analysis—Cohu
Rand,. Inc.—Analysis—Carl
>
million; considered:
then the greatest engineering feat
•
v
;
,
the
of
cost
Corporation—Analysis—New York Hanseatic Corpo¬
Company
United
finished
Buscuit,
hydro-electric
the world, is a
modern business romance that has
r
^
cost
developments in
Co.—Progress report—Blyth & Co.,
Also in the
Beech
lowest
and
New York 4, N. Y.
f
Auchincloss, Parker & RedW., Washington 5, D. C.
memorandum
Bowater Paper Corporation Limited
v
bia) in creating one of the largest
Co., 63
Co., 1 Wall Street, New York 5, N. Y.
Skelly
Steel Company—Annual report—Publications De¬
partment, Bethlehem Steel Company, Bethelehem, Pa.
r
&
Roosevelt Field—Bulletin—Oppenheimer & Co., 25 Broad* St.,
Textbook, Plastic Wire
Bethlehem
'
Lewis
Co., 42 Wall Street, New York 5, N. Y.
Company—Annual report—Ameri¬
Memorandum
Fifteenth
729
Also available is
J
H.
Encaustic Tiling Company, Inc., Lansdale, Pa.
Bell & Howell
.
I
,
ill Broadway, New York 6, N. Y.
Robinson
5, N. Y.
Service
Security
an
Corporation—Card memorandum—Aetna
Steel,
Remington
Eastern Air Lines, Hoffman Electronics,
on
from page 2
report—Motorola, Chicago 51, 111.
ration, 120 Broadway, New York 5, N. Y.'
7f
Corp., and United States Envelope.
52
York
Polaroid
•
Broadway, New York 38, N. Y.
:
Also
and
Lime Company—Analysis—Dayton Haigney &
Electric
Sharon
Allied Products—Data—Amott, Baker &
<•»
Co.
Lionel Corp.
D. C.
can
The
Coal
Parke, Davis—Data—Shaskan & Company, 40 Exchange Place,
Securities Co.,
Co.,
Cable
Truax-Traer
on
Inc., 14 Wall Street, New York 5, N. Y.
New York.
&
Peter P. Mc-
—
New York 5, N. Y.
Airlines, Inc.—Bulletin—John
Pacific Gamble
Pine Street, New York 5, N. Y.
What Atomic Energy Is and How It Is Applied—4-color sheet
with listing of 100 atomic stocks—Atomic Development Se¬
Imperial
bulletin
a
curities Corporation,
Steel Industry in
bulletin
is
England
Oxford
.
curities
Continued
Co., Inc., 75 Federal Street, Boston 10, Mass.
.
Chuo-ku,
dis-
a
Wall Street, New York 5, N. Y.—$2.00 per_ copy.
an
Utility Common Stocks—Comparative tabulation—G. A.
—Nomura
Bulletin
r—
Co., 44 Wall Street,
Motorola—Annual
National
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y. "
|
;
Public
Also available is
analysis of American Telephone & Telegraph Co.
other representative banking institu¬
Comparative analysis
—
&
available
Ill Broadway, New York 7, N. Y.
Banks and
Largest
tions
slightly belated, are in order.
Hickey,
&
-
Dermott
100
Plan"—Analysis—Vilas
Monarch Machine Tool Company
Opportunities in Japan—Circular—Yamaichi Sec-
rities Co., Ltd.,
"Agreed
Sincere and
Company, Chicago, celebrated his
birthday on March 8. Greetings,
Loewi & Co., 225 East
—
H. Welch
H. Welch,
cussion of rate divisions of Mid Western Roads.
63, Mass,—$8.00 for six issues, plus "How to Increase Execu¬
Investment
Edward
Edward
J. A. Hogle & Co., 507 West Sixth
Meredith Publishing Co. — Report
Mason Street, Milwaukee 2, Wis.
issue—Har¬
current
—
on
Street, Los Angeles 14, Calif.
ouchi, Chiyoda-ku, Tokyo, Japan.
vard
Also available are bulletiris
Cement Co. and Purolator Products.
Permanente
May Co.—Memorandum
report
Co., 120 Broad¬
York 5, N. Y.
New
way,
'
research
:
y.:
; Manufacturers. Trust Co.-r—Bulletin—Walston &
ing Japanese Companies—in current issue of "Weekly Stock
Bulletin"—Nikko Securities Co., Ltd., 4, 1-chome, MarunStocks—New
\
& Hardy, 11
Broadway, New York 4, N. Y.
Securi¬
Forecast of New Share Offerings and Dividend Rates of lead¬
Growth
Oit & Gas Corporation.
Ben Franklin
on
D Uranium Mining Co.—Report—Hardy
.
Electric Utility Industry—Review—H. Hentz & Co., 60 Beaver
r
■%?
Federal
30
Market—Newling & Co., 21 West 44th Street, New York
36, N. Y.
Street, New York 4, N. Y.
'
"4
National Home Corp.
Corporation—Circular—McCoy & Willard, Dept. FC,
Street, Boston 10, Mass.
Also available is a
Lexa Oil
ties
-
on
Brochure —Investment Dealers' Association
—
Canada, 170 Bay Street, Toronto, Ont., Canada.
Canadian Letter—Fortnightly review of the Canadian
.
Ira Haupt & Co.,
Corp.—Memorandum—Kidder, Peabody & Co.,
Street, New York* 5, N. Y. Also available is a
R.
Outstanding
—
Steel
Wall
memorandum
115 Broadway, New York 6, N, Y.
Co.,
Canadian
and
January
in
Analysis
—
Broadway, New York 6, N. Y.
IT
Aircrafts—Discussion
& Mc-
Telephone Corporation—Analysis—Thomson
General
Recommendations & Literature
To Ed Welch
York.
Tokyo
DEMPSEY-TEGELER & CO.
Mac-
affiliated with
Kenower, MacArthur & Co.,
Ford
Building, members of the Detroit
Stock Exchange.
Volume 181
Number 5410...The Commercial and Financial Chronicle
(1137)
This
is neither an offer to sell «or a solicitation of an offer to buy
these securities. 1 he offer is'madoonly by the Prospectus.
announcement
-
.
.
$7,0.00,000
American Potash 6? Chemical
Corporation
3%% Convertible Subordinated Debentures
Due'March 1, 1970
Convertible into Class B Stock
at
$90
■
per
.
share
Price 101% and Accrued Interest
Copies of the Prospectus may be obtained in any State only
from such of the several Underwriters, including the undersigned, as may lawfully offer these securities in such State.
LEHMAN BROTHERS
GLORE, FORGAN & CO,
»
The Commercial and Financial Chronicle
to
Thursday, March 10, 1954
...
(1138)
TV magnetic tape
As
in electronics, such as the
depend
-
recorder; the electronic cooling system; the
erties
and not completed as commercial products, he reveals
as
a stimulus
to competition in the electronics field.
.
,
is
show
motion
short
Kelvin,
this
that
picture
i1 bus trates
with
devel¬
these
experimental^
field
form.
David Sarnoff
havior
magnetic
television
The
physics.
sented
shed
on
electronics
of
in
cess
tape
creating
tronic
television
of
needs
the
meet
provide useful services not
in television broadcasting
but also in the motion picture and
can
another
still
In
scientists
dustry in general. An unlimited
number of copies of tape record-
made substantial
development
of
ings
be
can
the TV
mulate
set
to
also
which
in
1,
will
the
is
tape
a
major
will
into
photog¬
Motion pictures in color
and black-and-white can be pro¬
raphy."
quickly and economically
without any photographic devel¬
oping or processing. Pictures can
duced
the
viewed
be
they
instant
are
taken, thus adding new flexibility
to the making of motion pictures,
replaced
that
by
be
can
little
a
the
be
the
features
of
The
future.
television
electronic
in
light
amplifier and tiny transistors
—
also products
of recent electronic
developments—will eliminate the
need for using the picture tube
all
other electron
Electronic
,.
tubes
in
a
that
Synthesizer
seen
first
on
result
field.
To
the
of
screen
the best of
is
in
research
our
the
knowl-
looked
electronic
««
in
the
is
means.
The
past
have learned that
first refrigerator
to achieve practical storage and
freezing temperatures entirely by
it
edge
the
upon
as
50
years
electricity,
unrelated
we
once
the
to
the
that
been
the
modern
—A
and
—k
phonograph
sound movies, music and literature have been electrified and
in
has
for
electronized visually
the
audibly.
been
more
known
than
120
to
scientists
years.
It
was
French
physicist, Jean Charles
Peltier, who discovered that pas♦From
an
address
the
Annual
the
American
gmeers,
Winter
by Gen.
General
Institute
New York City
of
Sarnoff
at
Meeting
of
Electric
En-
well
as
Jhe scientists and engineers in
RCA Laboratories have been experimenting for
■
as
effort
to
some
broaden
time in
the
,
SCOpe
an
Creative
.
prices since the fall of
through 1954 alone corporations
added to share values through
retained earnings $48 billion. This
This
into
or
that
end
electronics
genius.
electronics
contrast
advantage
and
offered
for
the
by
in
of
role,
new
.
from
free
able
to
that
play
a
com¬
effects he wants to create he
But
"interpretation"
of
written
composer
the
heart, the soul and
the
music
composition—continue
the
task
and
being
function
who
music from the
of
to
on
That
of
be
hu¬
the
synthesizes
score.
Continued
the
—
the mood
the
man
can
ofthe synthesizer
Dy use 01 me synthesizer.
the vital factors of correct
by
The
a
shares
In
fer
does
on
a
4,
Poors
of the
market
in
basic
eco¬
'the
average
from
in
with
Whereas
indicators.
market
by
rise
average
other
re¬
1929
of
shows
13%,
an
cost
of
living is up 56%, farm income
133%, insurance premium collec¬
market
equity
of
bulk
tions
196%, hourly wages 228%,
bank
the
of
statement
the Senate
Committee,
exchanges.
increases
deposits 229%, personal in¬
234%, gross national prod¬
come
*From
&
increase
securities.
before
all
stock
stock
indicate to
existing improper
appraisal
Gov?
S
may
closing, I should like to
to the comparison made
their
the rise that
not
(other than U
Standard
the
ofbankloansto
be compared with
v
of $195 billion for listed
value
long-
review of current
yield
and price-book
ratios
an
than brokers for nurrhasinff
ernments)
has occurred, a
by Mr. McCormick
uct
Banking and Currency
Washington,
D.
March
C.,
242%,
debt
mortgage
and
284%.
1955.
LETTER TO EDITOR:
Agrees With "Chronicle" Editorial
On Our Far Eastern Policy
A.
William
Feb.
Robertson,
Editor, Commercial and Financial
Please
page
40
New York
splendidly"
a
Bar,
says
has
view he
accept
my
Chronicle:
commendation for
,
the
editorial
in
your
17, 1955, issue on our "policy" (?) in the Far East, especially
to recognition of
"Red China."
It expresses splendidly a
Feb.
as
thought which I have long harbored, but could not express as the
editorial does. Also, I have asked the American Taxpayers Asso¬
ciation
crazy
to
send
you
a
copy
of their letter of December
and wasteful and abominable policy of
78 Evergreen
East Orange,
Place,
New Jersey
on
our
"foreign aid."
WILLIAM A. ROBERTSON,
Member of New York Bar
March 1, 1955.
the
per-
Member of
"expresses
editorial
17
long harbored.
musical
a
Of Composers and musicians
by enabling them to take advan-
Nothwithstanding
and
forf whatevef -Musical
byii
unsound
whose
distortion
is not necessary
be
or
the market.
million
securities
in-
of
refusal
substantial
noise.
It
excessive
marked
musician
the
year-
*4her
superior
expression
performs
to
of
them
this
In
•
$482
nomic
earnings,
ean
poser
the
peace;
curities.
me
scope
equiva¬
or
use OI creail ln nf <co 490 m;iiinn
me marKet. Tne
VPar_Pnd
tntai
profits by payment of the capital gains tax,, thereby reducing
the floating supply of such se¬
value
characteristics
an
of credit in
use
gains to lessen their paper
term
making
to write new composi¬
wider
with
musical
tions
their
of
the
and
of
take
same
$48 billion of ad¬
figures reveal that there has
not been
other
vestors
encourage
composers
that
and
vestors;
sound
sounds
system
new
should
the
lent shares had
companies,
pension
institutional in-
investment
funds
have musical significance."
the
continuation
the
may
may
music
that
means
number of
took place for a
rise
heard,
to
any
It is
significant to note that from 1946
Moreover, I believe that
synthesizer
score
create
against 152.
as
is
book
ditional value behind them.
sound
and
arts, is really a close kin.
In
radio broadcasting and television,
principle on which this
electronic cooling system operates
have not reached a dan-
we
value is 235
and
19.1,
1953
is
performance
composer's
records
During
review and
against
as
but that, in itself, is not a cause
for alarm.
In my opinion, the
two feet.
sizer."
this
matter of fact,
a
true
ket
without
any
moving
There is another development
This electronic instrument also
parts, motors or compressors—in
under
way
in our laboratories offers new opportunities for pro¬
fact, a noiseless machine—is on
which I should like to cover in
the way and encouraging progress
duction
of
phonograph records,
is being made in our laboratories. a little more detail because this since it can produce any kind of
In effect, it is an all-electronic is the first time it is being pub¬
sound that can be imagined. Fur¬
We call it the
cooling system,
and the small licly disclosed.
ther, old recordings can be re¬
electronic refrigerator which you "RCA Electronic Music Synthe¬ juvenated into new phonograph
designed
have
14.6
point in the stock market. It
that there has been a
marked rise in many stock mar-
system permits, us
to perform
electronically the translation of
the
now
$12.75; the annual diviyield is 4.27% as against
dend
ger
playing is limited to the use of
10 fingers and sometimes also the
.
Music
As
The
Indeed, simplicity,
and flexibility will
compactness
the
appraisal of the basic material indices leads me to the conclusion
arrangement.
a thin, flat
hung on the
companies
earnings
securities 3,34%; the price-earnings ratio
the
of
status
present
desired orchestral
picture.
box.
solo
in
top, it
year as
market.
blended in any
That will be
"mural
television," with the
screen
under complete control of
a
television set.
conditioner,
air
electronic
The
be
wall like
and
Electronic Cooling System
appli-
have
in¬
408.9" in
figure 27.7 points
appears that
a
1929
stock
of
The RCA greater confidence of investors in
tones
or
before
never
peak
a
constituent
show
re¬
against
consideration
taken
be
reasonable conclusion as to
a
of
Synthesizer
employing
instruments,
either
through the
the
the
properly
of human voices and conventional
and for televi¬
the
over
in
industrial
reached
January, 1955,
electron!-' improved outlook for business in
infinity of new musical general- investment purchases by
complexes
the
While
for producing
means
cally, an
of electronic light, the
television picture tube
present
mag¬
step
"electronic
of
era
lighting
Ultimately,
screen
an
hand.
We Will
significant ad¬
picture reproduction.
will.
TV
a
sion
cation
of
at
in the science of illumina¬
that a library of phonograph records now makes it pos¬
sible to hear favorite records at
achievement
be
Music
Electronic
a
conditions
periods.
spective
dex
in
arrive at
well as any musi-
as
a
average,
and
any
instrument,
such
September,
data
economic
Cal vurf- whlcha is .bey°nd con- reasons, including: increased busithe ness activity in major industries
capabilities of
voice
or
than
reaches
reaches
practical amplifier of
a
for
way
netic
light
ngnt
more
ratio
ratio
tion
be
can
When that
When that
have made
vance
accu¬
desired,
to
light
These will en¬
owner
programs
whenever
The
RCA
kca
of
ratios
in
in
1.
1.
to
to
100
library of favorite tele¬
a
vision
20
20
tape recorders for
certain to be devel¬
oped in the future.
same
electronic
have already
an
I
exoerimental
experimental
an
an
and re- fication
wiped off
and again.
use are
seen
amplifier.
seen
seen
progress in the
one
weighed before one can
into
the
capable
system
nevertheless
per share of $28 a
against $19.94 in 1929; the
present
dividend
is
$17.47as
tone produced by
the human voice or any musical
generating
preserved indefinitely or amplifier that gives light ampli- ventional instrument.
Television
able
and light
The recorded tapes
ine recuraea rapes
electronically
used again
home
quickly
made
be
can
economically
economically,
electronic
an
have
f actoi s
many
McCormlck
T.
E.
create
to
but
the
of
one
Research
able
been
price
is
index
js
have
The
in
same
ing
much sii-
market
sakl:
field, our
new
engineers
and
afforded
nificance.
in the field of acoustics.
quote one of his statements. He
"We
industry, in home enter¬
and education, and in-
e
too
thority
I
itself
in
deceptive
more
1929, with
January, 1955,
afford a picture of the strik¬
dissimilarities in underlying
may
b
Harry
the
of
panies
the
not
development
Mechanical
-
which
attained
September
of 1929 should
F. Olson,
Acoustical and
Dr.
av-
Index, and the
earnings, book values and dividend
payments
of
constituent
com¬
in
Laboratory, Princeton, N. J.
Dr.
Olson
is recognized
throughout
the world as an outstanding au¬
elec¬
Light Amplifier
tainment
of
the
peaks
to
and
stock
Dow-Jones
they
elec¬
in its
this project is under
Director
Electro
conditioner, in a selfsuch as required
Electronic
research
on
direction
in the home.
only
theatre
noiseless
a
work
unit
contained
type of tape recorder
new
air
tronic
broadcasting.
This
of
construction
risen
world of music.
The
where it revealed no evidence that a limit
will undergo a
series of field has been reached,
tests. These tests will help us to
Encouraging progress is being
determine the commercial design made in the development of this
of the apparatus best suited to cooling system which will enable
Company
Broadcasting
the
above
bring this new system to a
stage of practical usefulness in
National for improved materials so far has
the
in
installed
ing
are
comparison of
will
the
that
informative,
indices
results.
extraordinary
ieveis»
than
market
believe that further advances
We
produced and The discovery of Peltier has now
demonstrated in both color and been translated into practical apblack-and-white.
It is now be- plication. Our continuing search
even
believe
I
have
development,
of
stage
achieves
been
recorder has
that,
system
present
materials.
new
in developing an
succeeded
While
price
scientists and engineers have
our
Contends there has not
other
to our
will
demonstra¬
Synthesizer,
our
>
my and that generalizations on "mar-
say^
you
as
Music
this
of
tion
the be¬
and solid
light
new
today in
observe
this
in
research
Their
me
challenge
But
men.
main
opinion, the fact that the DowJones
and
all of these
tone has pre¬
of
great
a
research
solid-state
in
QU*ry,
fidelity
with
* -
•;
of credit in the stock market.
use
the
to
reference
electronic instrument to
an
one
Poi.nt of the securities market in- erages leave much to be desired
portamento, timbre
characteristics
materials, and provided new in¬
formation which has led to suc¬
Recorder
Magnetic Tape
TV
For
handle
to
studies
recent
unsound
an
and vibrato.
the RCA scientists
approach the task
knowledge provided by
new
opments
in
their present
With
tone
a
been
-
such as
growth, dur-
intensity
decay,
ation,
of
but
are
and other basic economic indicators.
characteristics
its
freauency
studied
others who
and
able
And a tone
capable of excit¬
breakdown
the
into
effect,
were
tone.
or
musical instru¬
or
sound wave
a
upon
Lord
Peltier,
Unlike
eration.
a
exchange, pointing out that
of the many factors to be taken
into consideration in arriving at a reasonable conclusion as to
the present status of the securities market, discusses other
matters which are of significance, such as current corporation
earnings, yield and price-book yalue ratios, credit conditions,
price indices alone
ing ail auditory sensation having
pitch.
~
The operation of the RCA Elec¬
tronic Music Synthesizer is based
the direction of the current,
of great promThis so-called "Peltier effect"
ise for the fuhas long been a scientific curiosr
ture.
Before ity chiefly because of the lack of
proceeding to materials capable of producing
discuss
them temperatures sufficiently low for
I should like practical use in cooling or refrigo
musician,
ment, to the listeners.
developments
t
sound
Head of second largest securities
of
terms
of course, comprise
the medium of transmission from
depending upon
the junction,
of
electronic
new
President, American Stock Exchange
Sound waves,
the
tists
in
described
be
these attributes of
•
here a sage of an electric current
achievements of RCA scien- through the junction of two disand engineers which have similar materials produces a coolresulted
in ing or heating effect in the region
few
are
may
By EDWARD T. McCORMICK*
the physical prop¬
pitch, loudness, timbre
Every sound in nature
upon
time.
and
should like to discuss
I
Status of Securities Markets
intensity, wave form and
And
the
psychological
characteristics
of
sound
which
amplifier and the electronic music synthesizer.
Though stating these developments are still in experimental
them
know,
the
physical
of
sound
are
fre¬
you
time.
electronic light
stage
Considerations in Present
applied to music.
be
quency,
Board, Radio Corporation of
Gen. Sarnoff reveals recent progress
can
properties
SARNOFF*
America'
GENERAL DAVID
By BRIG.
Chairman of the
of
that
Developments in Electronics
New
developments
scientific
tage
Editor's
was
Note:
A contrary
view
on
expressed by Mr. Stanislaus White
peared in the
"Chronicle" of March 3.
the editorial in question
in his letter which ap¬
Volume 181
Number 5410...The Commercial and Financial Chronicle
(1139)
activities
other
Business and the Investor in 1955
s
•
-S.-
By PAUL C. KIMBALL*
_
Mid west inyestment banker points out condilions and influ¬
,
which are causing the nation not only to be alive and
vigorous, but to be expanding "at all the seams." Analyzes
recent growth and movement of
population and their effects
promoting economic growth. Points out what investors
on
?
*
.
surveying
anyone
of
Some
t..
•
the
by
of
fact
our
spurt ~ of
in
the
doleful 30's
•the
experts
*
calculated
it 'h
ft
t
a
h
e
b-o u t
a
million
in-'
~
record amount
than
of personal debt—
hinkn
rpniiH
prpiu
fhPAmwiran nnhiiJhv-bnd
ThP
'
off, their service is
first
dispensed
facilities
in
,
■
.
with.
the
*
mar-
ir»i n rt
ket has been opened up. 'In
American
income
fashion
families
these
4
+
mid-'
for
shops
snops
such
Federal
Reserve
System
has
long term
obligations
have
Reserve
and
these
ab-
-
enough
permit
profitable 1955 and, after
gbing
T««iiictrv
automotive
could
put more
new
a
is
cars
in the
for
is
have
busi.
.
a
as
i
And
on
greater
I
remained
since
steady
autumn.
year than ever before
history of America The de¬
suits
.
In fact, inventories
services
quite
the
on
mand
men's
to
"
base but not enough to
of an inflationary surge-
up.
tistical
rate, that
this
road
j
to, maintain
reported by the Government sta¬
industry
presently producing at
•,
it
permit
By making bank money a little
more
expensive and little les3
to get, this action has kept
inventories from getting out of
line and has kept people from
buying inventory in excess of re¬
quirements to gambld on its price
Automotive Industry
The
objective
easy
I share their optimism,
.
to
healthy
reviewing their reasons and logic,
'
basic
available
..
ness
their key customers. My neighbor
and his-brothers are looking tor
very
credit
„
carefully and only after thoroughdiscussing major moves with
a
Board's
appears to be to see that there is
..—^
w
ly
their
t
and
ana
inflationary
an
line.
i
enioving
are
of
ernment has sold some,
New York
; cities in which, they ___
have ___
located,
-—
T
-
a
taken very mild Steps to keep this
business activity in
The Gov¬
^hat do /4i look for in business; My neighbor and his brothers are
we
OPnor-ollv
vjjw.not born optimists—in fact, they
*efuture with optimism. De- are very cautious—they've. built
typi-: :fenS€ orders placed in the first'their business to its present size
.
at
spiral being based upon this high¬
ly favorable outlook, and through
.
.
country
City and are enlar§^ their s'orbed a certain amount of free
pla??t- in 0ther key industrial -funds and taken them out of the
cities- -Their customers represent business economy. The Federal
nf
exc?eAienT....
their
this
-The Government has sensed the
possibility
y and-large. the .beU ,wether, industries' in the
?
s
.
ble
nf
$3-^
160
souls
the
one
of
an
manu¬
record rate.
companies covering the nation.
When- business generally is good
they prosper-when business ac-
on the basis of their appraisal
$254 billion
an in—
0f the economy for 1955 they are
$3V2 billion over 1953.
acquiring a new plant in St. Louis,
During .1954 people paid off a are
expanding to more than dou-
households goods'; .that- make'4Tor^equipment. The Air Force, I am
more
plea s am-t " living
have* ^ informed, h a s already ordered
boomed".--No one can deny thatt^Yei*
billi°n of equipment,
the creation of large markets for ^l0s"y B-58 s and F-10 s, and the
V-
population f of
*
Personal
facturers
chain of service
a
mean
outpouring of goods by the
his
at
gas.applicants and all those other ,ie,ndimiei
•
owns
ing established in this country. To
meet these demands will
ot
remainder
>Uriited; States
-Would-have
...
billion.
year.
She thinks
banner year,
Qne of my neighbors, with
brothers,
itless list of other items essential
to the minimum standards of liv¬
brought about by this change/J
cal
our
in
.
.
a
fln^ 1954 came • tivity tapers
$286.5
crease
.
>" A vastnew middle income
die
population.
Back
.
profit this
1955 will be
part °* fiscal 1955 by the United
States Government totaled just,
3
standard of living never seen al30ut $5 billion. .By June 30, 1955
elsewhere in the .world, and hav—' d^-f^nse
ordeis ' Should reach a ing-tasted the gratifying frruts. of*
$16 billion to $20 billion,
a free competitive economy, they, figures, 'that
have ' reached my '
are working harder "than
ever to
^ indicate that the Navy will.,
enjoy more ' and* more, of these'"se abQut $1*3
billion for air
fruits. Sales: of new electrical arid" f rames> aircraft engines, and the
this.,
evident
..
.
that
vigor is clear¬
ly
..
.
than 40%.
country i$. alive and expanding at
all the sedmslv
'
of
the;
timated
the population has risen more
We all know the effect
our
im-
be
must
scene
.
pressed
.
pattern
dome, after taxes, in 1954 was es-
can
*''
Certainly,
t
economic
action in 1955.
,
general
.
of prosperity for our
Expresses view there will be no war nor police
,
1
i
to
ward signs-point to a continued period
country."
the
^ eVGr bel0nV 14 r
J ?e,ey people
way: Total*mcome m
feel this
Anticipate in 1955, and views the future with optimism. Gives
data on radio, automotive, and finance industries.' Stresses
importance of consumer finances and concludes "all the out-
.
and
now.1-
far
th\S
ences
..
So
living for 1955 indicates that the
;
American public will spend more
Paul C. Kimball & Co., Chicago, III.
„
right
on
that would make nearly twice her last
year's labor
long to spend the time -force.She will double her sales
too
list
a
11
early
"
should
like
this topic for
a
•
to
last
,
elaborate
moment
more..
vS?.
contracts of
Inventories trend to mount dur¬
impetus of our economy and itabout
$1.2 billion, mostly for than it has been for a long time. ing war periods because of fear of
the
30's the
is my considered judgment that ordnance
Housing starts are propected at
a n d communications,
shortages.
Since the middle of
population of our great country it was the impact of this buying featurng tanks and radar. .It ap- more than 1,200,000 for 1955 and 1953 there has been a
planned
was
increasing at a rate of one demand, coupled with a favorable p^ars. that the defense program when these houses are completed
liquidation of inventories by all
million per year.
The statistical atmosphere for business radiating wl11 hold at about $35 billion in- they will require furniture, stoves
kinds of businesses.
In mid-1953
experts*20 years ago set the pop- from Washington, D. C., that con- eluding wages to the Arnied refrigertors,
washing- machines,
by'
1975.
Paul
In
„
__
.5my
goods adds to the
consumer
C. Kimball
_
__
—
,
ulation level of the United States
tributed
for
making 1954
the
it
to
the
1954 at some 144
To them this seemed like
year
-
million.
s
large gain.
.
As
social scientists
Our
all know, the
we
dead wrong.
were
population today is
growing
at the rate of about three million
a
By
year.
the
end
of
1954
the
significantly
very
turned
out
successful
fact, business in 1954
Experts
defense goods and
xeach
10
may
well
population of 186 million
a
from
years
Lave
we
say
by
and
now
1975
population of perhaps 205
a
million rather than
160
the
mil¬
peacetime
any
There
was
Businesses
sure.
record,
on
services ,to be
inven-
dropped
tories to
what they calculated as
"peace-time" levels. But manage¬
ment
did
not
panic
at
the
pects of curtailed defense
in;the 30's.
ing.
,
.
terms
Reduced
This
«
swelling
population
of
is
being accompanied by decentral¬
ization.
We
have
noted
all
the
exciting movement of peo¬
ple to the suburbs.
This trend
shows no signs of abating. At the
Leginning of this century, some
1,200,000 immigrants annually
.-very
to
came
."That
the
was
migration.
big figure for such
Today
of
average
an
people are moving an¬
of the big cities and
1,200,000
nually
country from abroad.
our
out
,into the suburbs, and there is
no
record
'
who has dared to go on
one
[ss figuring that is the peak.This
;
of
movement
and
has
brought changes in retail distri¬
bution, and in manufacturing. Its
impact has been
construction
ord
in
tablish
shopping centers,
factories.
.new
movement,
new
schools and
new
Ail of this growth,
change
and
are
very
closely related to another signifi¬
alteration
cant
People have
;years.
-today than
has had
our
over
ever
the
past
more
before.
15
money
This fact
powerful influence
a
economic structure.
after taxes, measured
purchasing power, is 50%
greater than it was in 1929.
A
net
i higher income is not limited to
few
families.
income
While
the
of
the
top 5%
a
average
of
income
recipients in the- United States is
| down from
been
since
down,
the
income
—-Tfore
1955.
a
I
might
early 40's,
of
the
,
F.rum
and has
prewar years
_
ever
the average
bottom
,
add,
two^fifths
•
,
*
in'Tr^ort^li.rFeb!
_
Underlying
confidence
a
page
figures
all
based
on
else
pop-
de¬
pro¬
mise and forward looking legislation and direction from Washings
So far, I
reporting
to
the
have, in
sense,
a
been
what has happeened
on
American
economy
the last 12 months
as
over
it has passed
for
The Radar
the
for
defending
For Over
future
Forty Years
indus-
Industry
has
*
of
plant
a
called transis¬
are
been
product
a
President
-
what
The growth-of this company
fantastic.
Its principal
tors;
nothing
was
laboratory idea
a
than
more
few years ago.
Its sales, of these little, items,-the
size
ton, D. C.
revices
While in New York City in the
week
of January,- I
visited
more
growth, technological
velopments with tremendous
the
of
the
eraser
little
on
pencil, is in
the
lars
a
the
electrical
year
metal
the
holder
of
end
of
lead
a
millions of dol¬
Every phase of
now.
and
electronic
in¬
front of my eyes, and unques¬
tionable
your
own
experiences
dustry will probably respond to
the impact of these little products
and
now
in
observations
main
with
read
the
sions
my
same
in
You
the
have
discus¬
industry,
business
your
associ¬
the
similar conclu¬
much
is
more
an
what
to
as
1955—in
1955
other
the
sun
expression from
I
anticipate for
how do I
words,
spots
or
the
way
I
am
or
I
am
wind,
optimistic
not
for 1955, and why.
wish
the
of
various
with which
for
better
a
1955
than
Boards
the
membership
Boards
of
DireCf
I
am
affilated
is
first
six
months
in
ever
of
before, and these
Directors
laying
P^ns for a wide variety of busi¬
nesses
to
from
gray
are
iron
foundries
metal
fabrication, time and
saving devices for the home,
electronic products for industry
labor
and
for
leisure
war,
consumer
goods for
time
activities, and financing the purchases of a'utomo-
21", biles. trailers, furniture, television
sets,
growth
of
Black Hills Power &
the result
the
the
of
making
economy
stimulating
1955
banner
a
will be
factors
year
for
Michigan Gas & Electric Co.
Missouri Utilities Co.
Central Vermont Public Service Co.
my firm conviction
impact of the transistor
the
one
District Power Co.
Madison Gas & Electric Co.
/
Central Maine Power Co.
It is
ponent.
in the American
Light Co.
Central Illinois Electric & Gas Co.
industry
making this small .electricaLcom¬
that
Kentucky Utilities Co.
Lake Superior
.Northern Indiana Public Service Co.
Northwestern Public Service Co.
Gas Service Co.
-
Green Mountain Power
•
Corp.
Otter Tail Power Co.
Indiana Gas & Water Co.
Public Service Co. of New
Iowa Electric
Southern Utah Power Co.
business.
that, first ol all,
general belief shared by al¬
tors
Arizona Public Service Co.
Arkansas-Missouri Power Co.
electrical
—
in fact, just about
industry based on the use
the
of
to state
most- 100%
of
household
of electrical energy, as
the straws have fallen in the
I
industry,
industry, trans¬
equipment
What to Anticipates in
and
portation,
the radio
elevision
the
machine tool
every
What I think might interest you
read
is easy to romance
It
in
and
sions.
me
reaching the market for the
first time in practical quantities.
that have
reports
desk
my
with
coincide
own.
ates have reached
the
American,
on
tries,
spends
uation
on
; Even considering higher prices,
today the income of the average
r-iri
was
way
roads,
new
staggering
base
a
making
rec¬
under
now
homes,
new
in the
seen
Continued
*
lim-
economy
spending tens of millions in development work which will es-
with
crossed
people
war
country, the Government is
our
pros¬
left
taxes
ments
consumers.
Development
a
not
are
spendable income in the hands of
Population
of
ap-\
the best
was
year
it
drop in demand for
a
lion projected by social scientists
.
In
.
but they are going to keep many
pears that contrary to many pre-1 basic plants humming throughout
dictions last year turned out to tho current calendar year. In adbe a good year.
As a matter of dition to producing new arma1954
over
of
now
televison sets, rugs; and that
Forces.
these
be.
Looking back
population' of the United States
^already topped 163 million.
Lad
to
year
around-the-world tours and
Three
weeks ago
tonight I
was
Light & Power Co.
Hampshire
Iowa Public Service Co.
Southwestern States
given for the owner of a
company that last year reported
Iowa Southern Utilities Co.
Upper Peninsula Power Co.
$750,000
Jamaica Water Supply Co.
Wisconsin Power & Light
a
guest at
a
small informal dinner
party
Six
tained,
to
Los
profit
net
years
ago
before
the lady
we
taxes.
a
business.
Start¬
ing her infant business with less
than
$5,000 her first outside work¬
ing capital came from borrowing
from one of the finance compames, of which I am a Director.
very
merchandise
finest
nation.
Co.
enter¬
and two friends, moved
Angeles from Vancouver,
Canada to start
Her
Telephone Co.
For
1955
is already filled.
sell
now
stores
all
her
j4.Cj4/Iu'7Z and
Incorporated
'
Cr
Investment Bankers Since 1912
in the
over
order
the
book
She will employ
Chicago
New York
•
Boston
44
The Commercial and Financial
..gested; that
Failure of the United
Nations
Nations
U. S.
an
failure of the United Nations as
to
we
..
Thursday, March 10, 1954
.
upset
that
no
person can ignore the realities of
the situation. Not only the future
of this
Repub-
hope for
nist
kind,
free
of
world
this
depends
the
of
upon
policies
threat
of
we
can
How can a Socialist or
the unregi-
and
capital,
life
of our people?
Knowland
Sen. W. F.
ag-
period
unproducwithout
resources
destroying the living standards of
zuu nut- II'UIIl a £>iiicui tuivnjf ui u iiijiuvii.
behind the Commu- -to a great nation of 165 million!
nist Iron Curtain. Today over 800 people, the most productive the
million people live under the most world has ever known.
—V'
Vh. Ampri- '
ruthless, godless tyranny the world
It is one lhinf
py aenuerdie tnuttc,
has ever known.
can people
people
.
Government
the
or
tne
uiuieu
undertaken a series of
commitments under the North Atlantic Alliance, the ANUZS (Australia-New Zealand-United States)
Mutual Defense Pact and mutual
defense pacts with the Republic
States has
Philippines, the Republic
Japan, southeast Asia
and the Republic of China.
The last two treaties were over-
of
the
of
Korea,
whelmingly ratified by the Senate
during February.'-i'.T'J?
:
.
In a display of national unity
that should have encouraged our
friends abroad, given courage to
the neutrals and opened the eyes
of
the would-be
aggressor, the
relinquish the safety factor of bonds in exchange for the
to
38th
parallel, the
Security Council
.
maximum out
iuhuiuuhs.
credits
Tax
showed
trairYvi
often
iu duuw n tu juap^pu
nc of Korea, not
.
the
history of
that it
ese wiuciciicca
these conferences has beeh
is always the
"j—
are
between
bonds
,
free world that gives
any
a
kind of investing.
Investors
be
may
well
aware
that by
selling bonds and deben¬
to buy shares they are giv¬
tures
ing
up
good
a
deal
Perhaps this is
of
security.
good thing.. Ca¬
a
nadians have often been too prone
to let others assume the risks of
ownership. Up to a point, down¬
grading to obtain income or profit
advantages is a sensible thing.
Very often, however,
started
be
can
That this
mentum
is
a move once
carried
too
of its
move
far.
own
going too far
mo¬
is be-
—
7
Lnc f ESvaS1?gJf 6Vlde"t Per~
--- 1111C UA ieiUU rtslslancp Tnr
^ arrived a£ on which yestors. The - investor perhaDs
paid
J f ®re C01?Pu.ted- Among these justified such downgrading on th*
this
—o
—
«,c.Ato
member point jn mind as
/ v.
e,
.•
States, it means that our two nations alone supplied better than
95% of the manpower.
Does this indicate that the
United Nations is an effective instrument of collective security?
The answer must come back in
the negative.- ....
Our associates in the United
Nations ^so1 tied us down that a
stalemate .was all that could be
gained after three years of struggle in Korea.
We were denied the right of
hot pursuit and the enemy was
the record of protected in his sanctuary across
1
it is
uuwngraaing on me
jusiurcu
is interest
bonds and debentures. Keep
on
preferred share is
similar in many ways to a bond.
a very im-
Such reasoning is merely ephem-
basis
that
a
on-ine
—
preierrea snares
Ane UUU KCl
a"verv" strong f*a"t^r*'fnr'th*
has been abnormally strong sell
for
some tlme* Most new issues
to Premiu*n prices shortly after
they are marketed. There is a
defmite scarcity value for preferred shares on the various stock
exchan8es. Based on past experlence there is Httle doubt that
the tax credit on preferred shares
one receives'as a dividend have J13** been mainly responsible for
teE
S
high is bec0I™ng quite the usual
prices.
•>;*
f thi
dt
decree to allevl
11
ate the burden of donhle taxation thlng for a Preferred share to
investors are allowed a tax credit give a lesser return on the inor rebate on income renewed a* vestment than the bonds or dethe Yalu.
dividend! On th^ other hand bentu^s of the same company
With that example are you pre- bond and debenture holders do ?nvestors are becoming quite adpared to risk the future of our notreceive such a credU because justed to the tax credit on the
nation and the safety of our peo- the company who pays theTnter- dlvldenTd making up the differbondholder* that thev arp n in
th : interest before the Govern
ment take their
ftf the nmfitc
Now wp pnmp fn thJ nreferreH
and rnmmnn shareholder* in a
romnxnv It i* on lv after tale*
are naid tn the envemment that
dividends are diftrihided t* the
shareholders The earning* which
In brjef- and the besec°ndary security "value"
of an jnvestment disregarded in
the obsession for tax credits,
tewPY,f™y II had not yet ter- the uP°n the collectivefunction of est to themhas notpaidcorpora- enee"
...
P'e United Nations to ability in tion tax on these Darticular earn come
World War ,°TttlersI-
rticular earna, .
g There is no question that such
? taxation arrangement is fair
reSistie anSSL?° Jv, ^ ? w£ Jhe b°undbolde/ and the
TTn?taH
« r stockholder. The bondholder has
♦ations is quali-r an additional safety factor but no
ri°-Sl°^ •
g I^X+C
j*?6 stockbolder gets
The an- ings
the neemil
What hgs
Dreferr(ld charge
V?
to common shares In th.^ra 7
however even lower retnme ^
inve4tmpntc Hn.iKi^ ?-n
fied f- . beranw» nf tw Jl,4
nntgit' is some- the tax credit as a partial return cred'jt and future growth potencredit
?
'
rny 3udg' of The
double taxation. dividends is ^at,;dpated secoudly because of
orYrJP and sf,Pnndiv hp. *
. . er® a£e fome who have en- in itself a good thing. It does, ! Wh„A .
,, . .
investors to relinquish the
by dividend
world state United Nations as a age investors to relinquish the
which openly
investors influenced at least
visiancd the to which openly or however, unquestionablyexchange • setting effect is going on is
encoursafety factor of bonds
tax
.
'
Unfortunately
differences
dividends
deductions
—. —_„ ..
responsibilities.,
We must not permit court deeisions of Executive agreements
to raise such to the status of treaties. Nor will we long preserve
our Constitution, drafted at Philadelphia under the chairmanship
of George Washington, if we fail
to challenge any effort to amend
our Constitution by use of a loophole which may provide s treaty
or Executive agreement short-cut
to what was intended to be a difour
been
being
^
treaties ratified mmated in 1945 when the United the event of aggression?
than diplomatic moves started on Nations Conference was held in Swer likewise must be in
the part of certain Asian and Eu- San Francisco. The people of the ative
ropean powers to bend the line world did not know that we were
*
of defense in the Pacific and lay on the threshold of the atomic age
the groundwork for a conference though those high in government nart thp
which would have all the unfortu- had reason to believe a vast new f;Pr,
nbv
nate results of a Munich, a Yalta power that ultimately could be 0ur«?eivp«
k
or a Geneva wherein the aggressor
used for destructive or to be un- thine it i<?
construe'
eains his obiectives at the confer- tive nurboses was soon to hn nn- ment, cannot be.
•
tant
^r>77;77,7777 7"T
on
ivir
of war. The little Repub-" dends* is the company [n which
which was
-
by default would be a betrayal of
u
....
action had no sooner
table.
buying stocks, thus downgrading their portfolios.
and
of America supplied more than
90% of the manpower and better
than 90% offorces resources.
the of the Repub-"
When the
taken and the two
ence
Says, because many people have the obobtaining a dividend credit they are getting the
of their tax deductions, they are selling bonds
session that in
aid and tions on prethe ag- ferred and
gression, the Republic of Korea. common share
What is the record on this? After divid ends
three years of the Korean War, of have
their
the 60 members of the United Na- g0od and bad
tions only 17 contributed a single points
soldier, sailor, or airman to the
Perhaps a
resistance of aggression. Outside hrjef discusof the United States of America, sion on wh~
the other 16 contributed armed such deducforces in the amount of 45,000. The tions are ail
United States of America alone iowed would
'J. Ross Oborne
contributed more than 450,000, ^ r jn g Qu^
and we rotated more than one some iff these
million men through the Korean Doints The source of the divi-
ficult process.
Let us examine
the United Nations as an agency
House of Representatives passed for effective collective security as
the resolution by a vote of 409 to envisioned by some or as a basis
3 and the Senate by a vote of 85 for a world government as contoJ/.
This
dividends is, in
tax credit on
shares,
purchaswhich }"£j?ecuritms^knows the advan-
our people
time there were less tnan
lion
a
preferred and
tbat
whose enterprise and theater
in- thrift helpedjhem^ccumulate
-
gression.
In the past 10-year
lack
who
tive
or
How
join our productive capac-
ity and resources to the
ag-
gression
constitutional structure
and'the rights of
government
mented
Com¬
munist
the
although
good thing, it does unquestionably encourage investors
a
risks of ownership.
Communist forces
nists, of course, forthwith
without compro-
free nation
private
na¬
with
future
itself,
promptly acted and first called
upon the Communist aggressor to
cease the aggression. The Commu-
economic system be
without first compromising and then destroying the
free economic system, the rights of
with
free
the
the
Nations
United
Communist
which we and
tions deal
Mr. Oborne points out,
On
organization.
confirmed.
be
croseed
tied to ours
the firm-
n e s s
Toronto, Canada
or
any
other that organization to give
equal voice with support to the victim of
an
free men?
that we follow
and
have
mising our
largely
men
that
of
and Company, Limited
Assistant Manager, Nesbitt, Thomson
25,
When
.
dictatorship,
the
a
By J. ROSS OBORNE
all,
they were not impressed by a nf nrinpinai
safety and
common
United Nations resolution or the
owr Pana'riian tov i™,* * u• u tages and disadvantages of both
•
^ssum®
anyone
munist or other dictatorships, adverse moral reaction of that or- auow |nvesclasses of securities. If they don't;
without diluting our consitutional ganization. < The Security Council tors income
""""
then they have no business doing
guaranties. How can a Commu- next called on the 60 members of tax
deduc-
free
but
c
Tax Credit Dangers
most,
scrap
has litical system with the other naprudent tions of the world, including Com-
The world balance of power
so
to
1850, his concept was
shattered shortly after it appeared
June
follow and the firmness with which we
deal with threats of Communist aggression. Deplores past con¬
ferences which have given up territory and surrendered human
beings to the control of the Communists. Says we must not
permit court decisions to give Executive agreements the status
of treaties and thereby undermine the Constitution.
been
not
suasion
for effective collective security, and warns that the
of this Republic and of other free nations depends upon
policies which
the
nations
and place
agency
future
fact the United
in being would war¬
of their armed forces
their reliance upon the
"police power" of the United Na¬
tions
and collective moral per¬
if
WILLIAM KNOWLAND*
Senator from California
Senator Knowland discusses
the
was
free
rant
By HON.
1 i
Chronicle
(1140)
12
veiled.
•
Hopes - were high everywhere
soviet
union, tnougn a
that the Soviet Union, though a
dictatorship, had learned the folly
!p,
-fftiiw
loornd
1
q{
ion
aggression and of
territory and surrenders human cauge 0
beings to Che control of the
om- the free
munists. It is never the other way
and be-
war
on
...u.
_
state to
riandestinelv
individual
worid
or
age
in
m
•
in
nations
1
^
,
VU.VKJ
by
Th*™
.ixAiuviiwu
new
■
-
CII,
icaat
dividend
are
ni.,n0rAm
rieire
....
part
tax credits
standards of in-
-
up
wuiiu
LU
wllcjr
wi/um
wiUing to help establish a sys^em
international law and or-
be
around, wherein the enslaved p
pie gain
nJfpd der to preserve the peace of the
not permit Gulliver to De t e
world for ourselves and our childown by the Lilliputians,
mere
are
those, at home and abroad
who seek to advance the cause
tbei^f^d®m* ^
government. Until now
a major threat to c
Constitution or our sovereignty
ponents of this type
ame
Convention
tutional
hig
course
into force there has
wx
compared the San Francisco meet.
t^a^
our own constithe
Philadel-
at
two
7^
gather-
marked
been
trend
toward
downgrading portfolios of investments.
Perhaps there is some psychol;
u
1—j
gto^ should
give V2 of 1%
|n inc0me than
a
more
bond ax.u that «
and UWi a:
stock
to
justify risk
give 1% better than that.
common
should
Fast disappearing are the investJ
"
-
*
world
has not been
aTnd hvTogeTweapon
has
cauTed
^
a
va5l
piu^gduuct uwn
uuvtn
]ace tQ buiId the United
Nations
^ something which its charter
rbt?eHSS?S sioned different things.
world
state
of
?L7 rmild
cost
This is
us
our
This country cannot
y
♦An
address by
a
fallacy
freedom.
join its po-
Sen. Knowland at the
s
religious,
g
economic,
^
would rally most
of the nations of
the world to resist aggression and
of the world, but
SW'lJKSte. N™,UyL' dty, of oratorical
pr.^;lh,e,jieace:„„
fancy some
even sug-
{reedom from old World tyranny
Qr
desire to
worship God accord-
Continued
nr,
on
maximum out of their income tax
deductions.
In thg first p]ace_ those who met
different areas
Sons
,
we ana
So envisioned it as a mighty they Qr their predecessors had
force of collective security that come seeking a new way of life,
Washington
Feb. 22, 1955.
...
4X
page 48
whatever
the
reason
f ay
^
ciples of investment can resul
in only one thing-an absence o
be investors.
SwSKriS Midwest Exchange Membe
stocks
on
because of the
tax credit
the latter.
js
not
cuss
the
tors
such
0ur
various
as
intention
to dis-
investment fac-
security, income and
CHICAGO, Ill.-Paul L. Mul
laney of Mullaney, Wells & Com
pany, 135 South La Salle Street
has been elected to membership
in the Midwest Stock Exchang
»mw.h nor nr.int out the imuor- in Chicago.
growth, nor point out the impor- in Chicaeo.
Volume 181
Number 5410... The Commercial and Financial Chronicle
(1141)
reports to its
employees
on a year
of
13
progress
Progress in Steel Capacity
During the year Bethlehem's annual steelmaking capacity grew by 600,000 tons, now
stands
at,
19,100,000
entire steel
Bethlehem
steel than
than
tons —more
the
capacity of Great Britain. Today
can
produce 48 per cent more
the end of World War II.
at
1
The
Sparrows Point plant, largest steel
plant on the eastern seaboard, set an all-time
year's record by producing 5,562,056 ingot
of steel. Blast furnace
tons
Point made
a
new
"J" at Sparrows
world record in
pig iron
production, turning
month of May.
61,424
out
tons
in the
*
Progress in Raw Materials
During 1954 Bethlehem's
mine
at
Marmora in Canada
iron
new-
}
ore
brought near
to actual
production. The huge tacpnite plant
of Erie Mining
Company in Minnesota, in.
which the company has a substantial interest}
began to take shape. Development work went
forward on the new Grace Mine in
Pennsyl¬
vania, and
on
other
raw
was
material projects, in
.
Pennsylvania and in Chile; Venezuela and
Brazil.
"
• •
Y ' '.
7"' "■
•
,
•'..
-
V
5
*
;
•
Progress in Shipbuilding
•
v' '•
'
'
/
Although; the year was one of belowshipbuilding, Bethlehem's Shipbuild¬
ing, Division delivered 23 ships and 86
non-propelled craft, and repaired or; con¬
verted 4021 vessels. The
Quincy, Mass., yard
delivered the tanker World
Glory, largest
normal
cargo
vessel
ever
built in the Western hemi¬
sphere. The San Francisco yard launched the
SS Golden Bear, first
ship built for a private"
operator on the West Coast in twenty-five
years.
'.<•>■"
i.
•
y/.-r
Jv
*
•
#
*y>-: >"*7.
Progress in Steel Construction v
Bethlehem's
turned
annual
a
large industrial enterprise and their families have
stake
a
step
the
To
of
and
pioneering
in
its
of issuing
best
of
current
future.
It
a report to
was
this
belief
receive
a
that
back
in
a
vital
1927
employees, paralleling the annual
knowledge Bethlehem is the first large
on
concern
led
in the company's
Bethlehem
report to
to
take
the
sizable number of
con¬
for Ford Motor Company and
Interregional
Airport, San Francisco. Construction oegan
stockholders.
Annual
company
to
give employees such
Report
Employees (Bethlehem Review, March, 1955 issue) has been mailed
to
report are
briefly summarized here. If
you
and
foreshadowing Progress
In his letter
new
Los
Angeles fabricating works.
Progress in Safety
During the year 33 Bethlehem steel plants,
shipyards, fabricating works, mines and quar¬
to
ries received
to come!
m
the
Johnstown plant, whose 15,000 employees
worked for
to
employees contained in the report E. G. Grace, chairman of Bethlehem Steel,
objectives of the company's recently announced new expansion program to cost
$ 100,000,000. Thisfitogether with $93,000,000 authorized for
completing new construction '
as of December 31
rl954, will bring Bethlehem's total outlay for Expansion and modernization
since the end of World War II to over $1,000,000,000.
' * <
*"
:
"A healthy
company, making a wide range of products, profitably, in a growing economy,
offers the
strongest possible kind of insurance as to employment stability and opportunity,"
49 awards from the National
Safety Council, including 20 Awards of
Honor. The Bethlehem,
Johnstown, Sparrows
Point and Lackawanna
plants won first,
second, third and fourth places in the Safety
Council's Metals Section contest for
large steel
plants, and one of the honor awards went to
would like
free copy please write to Publications Department, Bethlehem Steel
Company, Bethlehem, Pa.
»..
the
an
the human factors that make possible the company's accomplishments.
employees in their homes. A few highlights from the
to
a
ft
works
projects, including New York City
Coliseum, Newark Bay Bridge for the link be¬
tween the New
Jersey Turnpike and the Hol¬
land Tunnel, Detroit Administration
Building
on
our
audit, reporting
The
steel for
fabricating
struction
Eimpioyees
activities
out
thirteen
over
four months without
a
-
dis¬
abling injury.
describes the
LEHE
Mr. Grace said.
EEL
"We
mean
'
to
-
healthy. We believe that the country will continue
of goods and services will continue to grow also.
stay
the national output
"It is our intention
to
keep
pace
with that growth."
•
to grow
and that
Progress in Social Welfare
Improved benefits under Bethlehem's So¬
Program became effective in
1954, including a $1,000 boost in the amount
of each employee's life insurance
policy. Bene.-;.
fits to employees under the
program also
include weekly payments in' case of illness
or accident, and
hospital and surgical benefits
for employees and eligible
dependents.
cial Insurance
The Commercial and Financial Chronicle
n
Thursday, March 10, 1954
...
(ii42)
McGrew
added
wanda stock on the basis of 2.35
shares of Marine Trust stock for
statement also indicated that after
the
apartment in an old French
each share of Bank of Gowanda
stock. This increase in the capital stock follows the addition of
March
Mr.
that
said
7
settled in Paris in 1905, and
in part:
His
on
the
on-the
He
Saint Louis,
and
French
and
long was
where
the bank, including capital stock,
surplus and undivided profits will
society.
He
his
Stockholders of The Bank
regular meeting of me
regular meeung or the
Directors of The Na-
the
tne
At
At
Board
of
tional
City
bv^he°Un^ted fStatesTto
of
li
stock. outstanding
voted
was
Board of
bank's capi-
million to $16 million,
to 160,000 shares
tal from $8
from-80,000
or
value. Albert C. Simmonds, Jr., President, stated that
the next step, following the stockholders'
meeting
was
for the
of $100 par
1 ?
.1
j
oa
n
value.
i!
1
1^1
1
.
A
At the
same
terly cash dividend
Bill declared
on
new
|:
5
1
After
giving
CasJr., and Thomas Chisholm
serly
Vice-Presidents
aonointed
were
All
Street
&
effect
for contingencies to un'divided profits, total capital funds
will consist of capital $16 million,
assignments
tions.
In
Branch
May the
will
profits in excess of $6 million.
In booklet form an "Analysis of
26
continue
Broad-
the
become
way-40th Street Branch, when it
buildin*
22-storv
new
.■
.
Mr. Brotherton
in
1919
the
1430
at
"
Broadwav
Times
in
ouarter<?
modern
to
moves
has been
and
1942.
,
^ity in 1917, was appointed
Asistant Manager at 34th Street
imo
with
began
is
sistant
He
at
Broadway
As-
appointed
was
Manager in 1931 and Man1954.
ager in
*
The
1923
in
26
the
now
Branch.
*
*
Chase National Bank, New
York,
combine
will
branches
in
of
two
downtown
the
district
on
its
weekend,
consolidated branch
March
14
quar-
40
at
Worth
Street.
The
bined
two
are
branches
the
Branch
ers
and
the
being
Worth
Worth
40
Street
Broadway
ate
separately'at
They
Street
Branch
will
these
as
After
11.
Wnrfh
Worth
oner
Friday,
consolidation
single branch will
fi-ip
the
at
locations
until the close of business
March
com-
Importers & Trad-
at
335
the
810)
and Feb
273, Feb. 17, page
24, page 936.
*
*
,
The
*
of
Club
25-Year
Union
City held its tenth annual dinner
on
March
be known
Prnnok
Street Branch.
*
*
*
'
members,,
8,
at
Shor's
Toots
of
the
Russell
club:
Alaimo, William Hayes and William
G. Thomas, who
received
25-year
pins
from
J.
Wilbur
Lewis, President of the bank. This
year's new members bring total
membership
in the club to 48,
including several retired members
the batik's staff.
tex-
the
over
opening the
in enlarged and renovated
ters
^
of
of
*
*
The election of George E.
Spargo to the Board of Trustees
750
The
White
of
President
of North
appointment
of
Norman
P.
Barber, F.
Robert
Bennett,
Howard Bigham, Robert F. Fitzgerald, Harry J. McKeever and
John G. Ramer
as
Assistant Secre-
*
con-
excess
*
.(
announced
MontclairL N. ;J.,. has
that
opened on Feb.
R.
Clarence
San d b;e rg,
Frostmann
Julius
with
formerly
of
which
in
are
White
Plains
Plains,
v,.
.
.
I
the
Co., Inc., fiscal agent for ForstWoolen Co.,
Passaic, i has
been
elected
by the Board of
mann
Managers to the office of Assistant
Treasurer. In 1930 Mr. Sandberg
joined the Bank of Montclair, now
the Montclair office of National
Newark
.Co.,
Banking
Essex
&
in its commercial and
served
and
departments
until
II, during which he
saw
duty in the Pacific Theater
in the U. S. Navy. Upon his dis¬
accounting
War
World
have
approved
plans
to
name
National
of
Bank
exin^ton
4th
^nd Street
the
r^ently0modern
Ralph B' Feriola' President
of The Crestwood National Bank
m Tuckahoe and Ralph T. Tyner,
w'
,P£esident'
S|argof ls
General Manager and Secretary^
Bank of
in investments and allied
at
the
*
*
*
George W. McKeag, President
of
Prospect
Park
State
Bank,
Prospect Park, Delaware
President
Street
Broad
of
equipped with modern
protection
and fully
bank will
open
for
April 11 under the
be in attendance to accept deposits and open new accounts on
Jr.,
Trust
Company, Philadelphia, announce
that
have
banks
to
agreed
of
unanimously
Directors
of
Board
the
both
plan of merger sub¬
a
ject to the approval of the stock¬
holders and supervisory authori¬
of merger provides
ties. The plan
exchange of three shares
the
open
jng area
electrical
County,
Horan,
J.
Hubert
and
Pa.
Street Trust Company
subway banking windows the Comptroller of the Currency,
into a glass enclosed work- the three banks as a consolidated
The
courses
subjects
Institute.
Forstmann
for
of
Prospect Park State Bank
one
share
of
Broad
the
for
stock
stock.
The
business on surviving
institution
will
be
National Broad Street Trust Company with
name
office at 31 Mamaroneck Avenue
in White Plains.
Wednesday and Thurs-
total
based
As
statements.
approximately
of
resources
$111,000,000,
a
on
year-end
result
of
this
Broad Street Trust Com¬
pany will have ten offices, eight
of which are in the City of Phila¬
merger,
Bank
of
Westchester
($5
par
value) for each combination of delphia, one at .Glenside, Mont¬
one preferred share ($7 par value) gomery County, and the proposed
office
at
Prospect
Park,
open every Monday and Friday
and one. common share ($5 par new
County.
Hubert- J.
to 6 p.m.
V
.
•
value) of stock of Westchester Delaware
*
*
*
County National Bank. The share- Horan, Jr.. will remain as Presi¬
dent of the continuing institution
At
regular-meeting of the holders of the last named bank
and
Mr.
McKeag,
President of
Directors of City Bank Farmers who hold only common stock will
Prospect Park State Bank, will
Trust Company, New York, held £cceive
oiie share of National become a director of Broad Street
March 2, J. Edmund UUil Frank Ba"k
^umuuu
Bull,
of Westchester of stock Lafor Trust
J
Tuesday,
The main banking room at
the head of the subway stairs is
day.
A¥ltUUi
*
7
u
.
M
A
*
G1'
'
...
Harold J
n
and-Eld red
*
Assistant
.
annninted
p
id
W
p£
All
Operating
Bank's Head
fh AY*A
AAYYTKAAVI
AAtr
i
Preferred stock shareholders will
' Secretaries' receive 1.4 shares for each share
Schumann -
Assistant
are
AA AM
Viee-
assigned
at
Division
of Preferred held. Shareholders of
to
The Crestwood National Bank in
the
Tfuc'<a.hoe 7''1 rekCeiYei'65t fhaYes
Office, 22 William
ctreet
'
At the meeting of the Board
of Directors o( xhe Marinc Xrust
Company o{ western New York,
~
.
Company.
Sc'hondel-* each share common stock held,
°.f National Bank of Westchester
stock for each share held. Share-
holders
of
National
Bank
of
Westchester will retain their outstanding 477,000 shares of $;. par
v? f
I I
j
-n
,
/
Buffalo, N. _i
Y„ on March 7, for- + uf>^5r
i
*
±.
4-v*^
thsir picssnt ri^iits, Tb6 combm0d
consulting engineer to the Nassau m.al aPP"™' was. f?vsn_to, th? caoital stock of the three banks
County Bridge and Jones Beach P an °
merger ot the Bank °t wm be ^3 067.500 in 613,500 shares
State Parkway Authorities. Mr. Gmvanda with the Marine I rust 0£ common stock of par vahie of
Spargo is likewise a Director of Company. Authorization was also ^ each. After the consolidation,
the Federation Bank and Trust Siven tor the calling oi a
National Bank of Westchester will
Company.
of stockholders on March 29 bave offices »n New Rochelle.
1
*
*
*
ar
purpose of voting on the, white Plains, Valhalla. Crestwood
John
T.
McGrew,
a
retired Plan*
Station in Tuckahoe, Eastcbester,
•
interest
Avenue at 22nd Street, with di- consolidation is approved by the
rect access to the subway station, stockholders and subsequently by
Bridge and
lTSAu!J10rit?'!JeisHalSOv(!n,''
l1?1 Manager of the New York
,y a",™ Authority and Finans,ate
Power
Anthnritv^a
bt&t© Powsr Autnority, and is
his
continued
he
where
in the
Accountant,
General
and
of financial field with special
g Westchester County National
^ve.n^; Line> downtown s de at
,
The
the
in
$130,000,000.
♦
consolidate the three banks under
of
Ration
the
of the Triborough
be
the election
nf
S^fnn
far£[h1,3n^vtherPreSden^ Ri?af
a
of
will
bank
T. Philip Reitinger, President of
The Montclair
Savings Bank of
pfa i'i^ThiTlfani^Tw ?has
"
New York. The ne v
formerlv
«
resources
soldiated
&
Schapiro
of The New York Savings Bank
at 8tk Avenue and 14tli Street,,
New York City was announced on
i
will
stock,
represented by 715,shares of $5 par value.
The
combined
nz!n ^2? and Manager in Restaurant, 51 West 51st Street., all banking days from 8 to 9:30
Plans call for the exchange of
«Cdisolm s association The dinner honored three new a.m. and from 3 to 6 p.m. on 2.4 shares of stock of National
the Bank
what
tile
Comrainv
additional
be $3,578,750
Na- Dime Savings Bank, of New York air-conditioned. Two tellers will Bank of Westchester with its main
began with
Jrr*
a?ser.ly
tional
to, the proposed merger
have appeared in these columns
ences
Manager of
Square Branch since
plainSj N
office
drive-in
common
Bank of
of
sale
the
^sued under date of Feb 23 by asa part of the recently m<>dern- Westchester, stated that meetings
M. A Schapiro & Co Inc of «ed corner entrance of The Bank 0f stockholders of the three banks
1 Wall street New York. Refer- for Savings
Main Office, 4th Wili be held on April 1. If the
Jan. 20, page
,
joined the Bank
*
Runyan,
D.
r:
the Proposed Plan of Merger" of
at
after
" "Modern bankmg facUities right Westchester, White Plains, a joint
011 J}1® subway Plaltform^are now statement issued March 3 said.
?™'!orkein°thr2XSdTtre^tMrdT R®f.er®nce to this proposed conto work n the 23rd Street Mad goldation appeared in our issue of
son Square area,
anncunc a February 17, page 810.
£,eCo^r®;y
nwl The statement issued March 3
bankhS & Clifford Couch, President of
the Chase National Bank and the
at those loca- Bank of the Manhattan Company,
Times Square both of New York City, has been
will
They
as
"
34th
at
Chisholm
Mr.
and
Broadway.
their
Casserly
Mr.
Y.,
stock
Westchester,
the consolidation and after
outstanding
National
of
announced
The Boards of Directors of
of Albert Westchester County National Bank charge at the end of hostilities in
Krassner as a director. Mr. Krass- in Peekskill, The Crestwood Na- 1945, Mr. Sandberg became asso¬
ner [s ari attorney associated with
tional Bank in Tuckahoe and Na- ciated with Julius Forstmann &
tbe law firm of Schapiro, Wisan tional Bank of Westchester, White Co., Inc., becoming Cashier and
Mr', surplus $18 million, and undivided
Branch;
new
three
23
Feb.
on
serve
formerly Managers;
Brotherton
at
Times
Square
were
^
West?
of
N.
effective
the
to
subsequent
The
•
j
.
America of New York,
the capital increase and also a
transfer -of §1,500,000 from
Re-
F.
Thomas
'
—
to 0f Trust Company
to
Brotherton,
*
*
of record. March 25.
called.
i
Charles
is equivalent to $20 a share per
the old shares, compared
)tal
with $18 of total payments in 1954.
This procedure was indicated at
the time the stockholders' meeting
was
Bank
Plains,
•
•
a
of $2.50 was
April
White
uounty Trust
McGrew.
quar-
year on
Thomas Chisholm
of
1
...
The
dividend basis it is indicated
holders
I
a
National
of
r\
102,250
date of consolidation.
,
at
the shares to be out-
payable
| standing,,
time
t
common
holders
large; tract of land to
France on which was established ^
v
^estchester County offices
^ay»
jucwlcd
a
boating and sports Center for Trust p
a
^usnnoneerTZ^In'han^
the member: of the Pans police. Trus - mneeTetS with an office in
members
driv.e-m bankin.
in Westchester
The sports center is still in use
The new
tp^'i inrl dllfin
XT Oit
vllvS tGf lfl li74b
under the name of the Foundation office 41 its eleventh
drive-in,
gift
1 z?a
i«
aaa
1-
n/t^
^
ment
i\/r
entered. Chester,
Croix de Guerre witn paims.
.After the war Mr., McGrew
who owned a suburban home at
Joinville on the Marne, made a
scheduled to meet on
March 8, to declare a 100% stock
dividend. In accordance therewith
Vice-President Townsend makes
known that the trustees of the
bank on March 8 declared a 100%
stock dividend payable March 25
to holders of record March 18, increasing;the number of shares
aaa
d1! aa
from 80,000 to 160,000 of $100 par
Trustees,
Brotherton
+
be
will be available to share¬
of record as of the 35th
shares
World War I, Mr. McGrew served Estate ./Planning representative,
with the rank of Major. He was Raiph T. Tyner, Jr., President has
liaison officer serving the United announced. Mr. Wilson has been
States forces and the French 'associated for the past three years
armies under Gen Henri Gouraud. with Mutual Life insurance ComHe was wounded'by shell frag- pany 0f New York as an underments at the front an« was writer,
decorated for bravery with the.
*
*
*
of the
Trustees to raise the
J.
__
will
of
day
■
*wi* *
Peter M, Wilson of Ossimng,
o
P«ri
=
When the United States,
by
in person, endorsed the
or
recommendation
Tbos. F. Casserly, Jr.
w
i
March 3 at which 85% of the
proxy
Walter J.
be approximately $47,000,000.
ZZ&'FfE? SSS^S Harbor. «ie naval base at Pearl
^
York
New
of
Bank
property
large
had
family
New York at 48 Wall Street, New
yesterday, March 8, Walter
held
born in Honolulu,
was
of
increased
by the
additional shares
of $5 par value stock at a sub¬
scription price of not less than
$22.50 per share. These additional
sale
$5,015,000 to the capital funds on
Feb. 25.
When the exchange is
effected the book capital funds of
shares
613,500
stock
American,
international
for
place
meeting
a
Bethune
Quai de
palace
has taken place,
the consolidation
^
*
*
*
National-Bank &
Trust
Co.
of Rockford,
111. in¬
creased its caoital effective Jan.
Illinois
The
19
a
to
$1,000,000 from
result
of
a
$200,000 as
dividend
stock
of
$800,000.
stock
*
*
*
A
of
dividend
$200,000
enlarged the capital of the First
National Bank of Kenosha, Wis.,
•from
$1,000,000'to $1,200,000,
fective
advices
ef¬
according
to
from the Comptroller of
Jan.
14,
the Currency.
*
*
Under
the
Pine
*
title of
Bank of
(capital $1,000,-
the charter
Simmons
Bluff,
and
National
Ark.
of Sherrill, of
stock
also
reeom- Tuckahoe, Peekskill and Tarry- of $25,000 merged with the Sim¬
nounced on March 3 by Horace one time with the Bankers Trust mended an increase in the capital town.
mons
National effective Dec. 22.
C.
Flanigan, President. Messrs. Co. of New York, died on March stoCk of the Marine Trust ComAll
employees
of the three At the effective date of the con¬
Bennett, Fitzgerald and McKeever 7 in Paris, where he made his pany from $17,124,000 to $17,- banks will be continued in em- solidation, the enlarged Simmons
are
assigned to the Branch Ad- home. He was 77 years of age. 500,000.
This represents an in- ployment, and all qualified em- National had a capital stock of
ministration Department; Messrs.
indicating that he was a leading crease from 856,200 shares to 875,- ployees
of Westchester County $1,200,000, divided into 60,000
Barber and Bigham to the Comn000 shares of $20 par value per National Bank and The Crestwood shares of common stock, oar $20
troller s
Department,
and
Mr. member of the American Colony share
The
18 800
additionai Nati0nal Bank in Tuckahoe will each, surplus of $1,200,000 and
Lamer to the Personnel Depart- H Pans, special advices from that shares will be issued in exchange be taken into National Bank of
Cnntimipd nn nciap. 49
Jner"City to the New York "Times" on for 8,000 shares of Bank of Go- Westchester's retirement plan. The
taries
of
Company
Manufacturers
of
New
York
Trust
was
an-
banker,
who
was
^a'Ca""® ™a*
associated
a
at
The
directors
000)
the
Bank
SherriJl, Ark., with common
Number 5410...The Commercial and Financial
Chronicle
(1143)
33
■■
\
+
vV
*
-r
'
'
,
NV
*■
RCA's Record 35th Year
The Radio
Corporation of America
1954 did the
in its
Results at
largest volume of business
35-year history.
Sales
of
from
$940,950,000 in 1954,
pared with $853,054,000
Net
taxes
stock
in 1953.
per
income
share of
Profit
In
Corporation paid excise
income
common
taxes
Per
Per
declared
'•*
share
Stoek and $1.35
per
on
share
Increased
RCA
consumer
were
*
/
in-
3.06
common
as a
for
the Com-1
share
for
>
Year
an,
are
under
ever-expanding
means
increased
Corporation's
means an
scale,
and
expanding and
But• it
more
18,899,000
play
a
22,052,000
182,549,000
that
Dedicated
Year End
234,199,000
Year End
-
234,865,000
Plant
of
and
Plant
215,719,000
=
228,941,000
and
Equipment
and
Equipment
also
Number
of
of
2.9 to 1
34,290,000
Equipment
33,644,000
16,260,000
13,999,000
151,459,000
Employees
at
i'
at
Year End
Close
*
134,182,000
"
*
Year
70,500
65,000
to"
V
4
A copy
of RCA Annual Report for 1954 will be
Write Radio Corporation
of
helping the industry in
BOARD
sent upon
request.
America, 30 Rockefeller Plaza, N.Y. 20.
-
to :
people.
pioneering
to build
upon
.
OF
DIRECTORS
.
new •
and
John T. Cahill
Elmer W. Engstrom
Frank M. Folsom
re¬
and welfare of the Nation
'
George L. Harrison
William E. Robinson
Mrs. Douglas Horton
David Sarnoff
Harry C. Ingles
Walter Bedell Smith
Jolliffe
it is making contributes to
economy
•
John Hays Hammond, Jr. Edward F. McGrady
Charles B.
the foundation of science.
progress
*
Harry C. Hagerty
search, the Corporation will continue
and
at
2.6 to 1
to
Net Plant
vigorous
possible to bring this
service to the American
the
at
'
Depreciation
on
j
•
164,068,000
,
-
pioneering its commercial devel¬
opment and is
-
at
*
having pioneered and devel¬
every way
The
19,963,000
Year
Additions
oped compatible color television, is
.
1.20
leading part.
RCA,
now
16,810,000
1.35
liabilities
of
industry in which RCA continues
3,153,000
Ratio of current assets to current
competition in all the
activities.
<
3.50
Year
Working Capital
svmbol of
development
2.27 ;
3.50
Year End
leadership, quality and dependability..
electronics
-4.1%
3,153,000
it*
J
.
35,022,000
2.66
Stockholders' Equity
reputation /
Radio, television and all phases
I'
4.3%
Total Dividends Declared
products at home and abroad is
of the trademark "RCA"
2.67
40,525,000
products and services sold
Per share
acceptance of
evidence of the international
/
51.7%:
51.5%
share
Reinvested Earnings
<
37,415,000
Stocky against $1.20 for 1953/
mon
-
42,976,000
Income
Common Dividends Declared
the Preferred
on
on
--
8.5%"
4.94
Per share
share.
totaling $22,052,000
.
5.72
income
common
for
amount
by RCA for 1954. This
eluded $3.50
per
share
f
Preferred Dividends Declared
/
.Dividends
on
72,437,000
8.9%
profit before Federal
Per cent to
taxes amount¬
per common
22.9%
on
Net Profit
addition, the
$81,815,000,'an
.equivalent to $5.83
$853,054,000
~
.
ing to $26,862,000, making the total
19.54 tax bill
,
10.3%
•
products and services sold
Total Federal Taxes
Corporations Federal
1953
83,501,000
Per cent to
com¬
taxes,, social security,
property tax, and
other state and local taxes totaled
-
Report
$940,950,000
previous year
Federal Taxes
before
Per cent to
$54,953,000 in 1954.
over
Income
'
com¬
Per
$2.66 in 1954,
were
Services Sold
and
Per cent increase
pared with $2.27 in 1953.
The
RCA 1954 Annual
1954
$83,501,000, and after taxes,
$40,525,000. Earnings
mon
Glance
a
com¬
Products
profit before Federal
was
•
products and services
amounted to
>
r
in
strengthens
our
~
national defense.
Chairman of the Board
Radio Corporation
of
America
President
Electronics for
Living
Chronicle
The Commercial and Financial
essjsaSjiflJi.viihal's Ahead in Coloi Television
mmmmm » liftlVUH i«
Outlook foi Large Scale
Production oi Color TV Sets
major component, Mr.
1955, of which TV set production is a
industry,
for many other
However, in contrast
it
as
industries.J
to
in some respects
electronics
for the
one
was
interest in high fidelity sound re
production.
wide¬
the
The
single customer of
largest
pes¬
the electronics industry continues
that
to
vTn-f AficA
flnr*
fha
nnncfro m
industry lead¬
the
value of production of military
electronic equipment for all types
for 1954 having about quadrupled
as
compared with the year 1950.
Although
this
segment
of our
thatrthe
business still accounts for close to
prevailed
there
year ago,
is
general
a
feeling
ers
a
among
the
be
coming year
should
cations
a
resumption
the
til
of
tronic
to
with
un¬
1954 in the
value
5%
was
total
even
which
prevailed
1954
in
preceding year;
defense spending off
more
than this, however, it
10%
steady
growth
program,
that total procurement
are
electronics
of
of
defense
industry's volume, indi-
the
half
see
is
elec¬
below
the
«
and
equipment production at the
factory.
Preliminary indications
are
that
this
figure
remained
.
placement
registered
than 300 who
work
in the business
should continue
for many years to come.
so
to
of
and
the
*
j
manufacturing
still
in
;
? j
A
_
a
^
for
year,
million
color sets
of
®
electronics
dollar
^
AT
in
markets
in
1954
volume
for
of
terms
continue
be
to
home entertainment including tel-
radio and recordings, and
defense production.
Demand for
evision,
television
p
sets
the
on
^xceeded
.
oi
number
oeen
ana
to
1
we
pv
in
pets,
is
sets
the
having
of
excess
7
million
1953
of
televi¬
was
however,
from
down
and
getting
ouite
a
white TV set today. Set proalso appears to have exceeded 1953, despite a slow start
first
half of
inventories
try.
1954
levels
Production
was
10 million
million
-f ahw da!
a««
of
of
slightly
year,
than
million
20
million
3q
of
color
nation's
will
homes
TV
reach
within
the
of
be
programs.
Thus> whiie mUch of the exaggerated
publicity about color -has
been' toned
Gf
more
a
down, good
progress
constructive
sort. has
been made
ing
°
ip the past
the day when
to
lookcolor be-
year
generally
manufacturers, were
somewhat below the
(
wtic
preceding year in line with the
overall experience of the industry. We at Sprague have stepped
development
up
products for
use
work
on
new
in color TV sets,
- types
of electronic
armaments,
and particularly
in
the field of industrial electronics;
a
number of
nents
for
puters
we
entirely
use
in
new
in ' 1953,
and
compo-
electronic
com-
in production, and
expect that this and other new
are now
at
^^,4
a
the
radio
in
excess
but ,output
record
ArifA
While it is too early to have
the recent improvement * in busi-
of
players
should
6.5
be a
and
white
7.0
sets,
believe
market for
million
plus
4-
between
outstanding record
of giving the
m
each succeeding
idea
„
M1PLnmain
ofLri™*
,n„
Inc.
nad*an Exchanges, announce the
of
removal
offices
their
to
150
®ro?dway. New York".38„,New
and
--
<'.r
'• ;
—-V,:.
-
specific—men
be
equals
CINCINNATI,
A'
staff of
covering the
years
Ohio—Theodore
Jro !ias
Bache &
Co., Dixie Ter-
Building.
'
achieve
Monthly Record
1936-1952 inclusive.
LOUIS,
Mo. —Eugene
English is with Central Republic
Company,
Boatmen's Bank
Bldg.
immediately.
Paul C.
Rudolph Adds
Edwin L. Beck
c/o Chronicle 25 Park PL N. Y. 7
SAN
Colbert
JOSE,
has
Calif.
been
—
added
by birth, not by class, not by
schooling, not by wealth, but by
staff of Paul C. Rudolph
pany,
to
the
& Com¬
Bank of America Building.
closely
quite
follows
/.*■.-
.
The Growing-Importance of the
Consumer
hlmself and unlimited horizon.
^Thisisanexotmg andanex
It is Detroit that has made pos-4Wlarahng,. ,thm^
has
sible the ideal of the Founding, +ho
fought about ^irnii^n h through
.largely
nAAfl
.«
*
mi
equal ir
Bllt it
A
that
true
our
ii
•
_
* a.i_ i
man
moeo
A
was
history.
American
-
cmo/i t o
,
point in an economy, production
becomes less important than con-
B *s true *hat ™en are ever
growing more equal . .... simply
because the genius for production,. as it has flowered here in
sumption. ^ *s.
t a ar e
make great quantit s o» g
•
The trick has been to sell them
already postulate abundance
for Americans. Nonetheless, it is
for
15
is creating a world that
Detroit,
can
believe that the ideals
to
wrong
Constitution and the prac-
of the
ticality of mass production tech-
the incentive system and its effect
free
but
part,
in
enterprise
more
than
include the very social
of our country which is
to
fabric
1L
the
describe
One cannot honestly say
unique.
.
t
.m-nny other country there
an
exists today an incentive"system
incentive system
socially. One finds most countries
in
primitive social state. Even
industrialized countries,
in. Western Europe, one finds
a
in
most
as
people still born into a class with
its distinct speech and dress and
schooled to remain in
class, and loaded down with
disciplines
social
weight.
try
of
incredible
in this coun-
It is only
speech,
that
manners, customs, dress, and all the paraphernalia of society are suffi¬
uniform
so
move
may
with
is
This
that
up
his
or
indi¬
down in
an
efforts
and
a
revolutionary
new
new
the
tolerance
tolerance
end
the
end
of
toward
toward
of
provincial inracial
racial
and
and
re-
the beginning of
second-class
citizen¬
ship for. the Negro, the acceptance
*An address by Mr. Weaver before the
Economic
Club,
Detroit, Mich.
Detroit
who
the
this
in
the
chain,
of
factor
afford to pay
can
And
them.
pendent
interde¬
potent
great
incentive
in the broad sense,
economy,
has yet to be
measured.
This
has
concept
articulated
fully,
tions
are
that
decide
been
never
to my knowltry to make
edge. So let me
plain what I mean.
motiva¬
The
how
*
much
we
willing to work, and what we
with our money and our time
complex.
Add
this country,
and you have part of the incen¬
tive system.
Before this system
could
develop, you needed the
equality principle in government,
and
before, the
system
would
are
and
many
them
'together,
in
mean much (except the right to
go out and build yourself a farm
as a
free man, which in itself is
great incentive) you needed the
development of the country's production capacity to where a huge
national products would make for
a
plenty for the people.
There
are
those
who
say
that
given income, people will natur¬
ally buy, that the trick is to get
money- distributed
around, ancL
then
the
tion
will
This
is
were
of
processes
consump¬
follow.
automatically
only
true.
partly
estimated
been
of
in our lifetime.
It
equals in importance, in my judg¬
fact,
^
people
to
do
the term incentive system
use
ligious groups,
Jack'L.
The cur-
to
men
endeavor, with each scanning for
accordance
J.
ton.
of leisure time of
those of an ever increasing mathemselves,: jority of our peqple.
God;
for
status
vidual
(Special to The Financial Chronicle)
Phone REctor 2-9570
this; group
the
use
not
ment,
This beautiful set available
each
and
his wishes and his abilities.
ST.
at
chases and
before
other, :and
ciently
With Central Republic
reallv
But
(Special to The Financial Chronicle)
including the
Bank & Quotation
,
.
before the law
Jr.
management
the
xidds
now
professional people — incor¬
porating a far broader American
grouping of equals at the top.
and
customs,
:
the
CHRONICLE
hies then from inherited wealth,
and
!™£j; tt»at
_
yes-
the old fam-
from
came
to
S. L. Weaver,
system
r?
^
minal
FINANCIAL
terday
stract and the
to
Quarters
MacD-onald<fc^Co.,
W.
nT*TriT*T*T.
&
of
act,
philosophy
practical¬
ity, of the ab¬
that,
In New
F.
the
and
I
-
COMMERCIAL
and
a
of
that
of
marriage
man
J far
incentives
has
its results.
year.
Joins Bache & Co.
Volumes
is
con-
beyond
dimmer hopes of his father,
The social leadership of
and
incentive
site
(Special to the Financial Chronicle)
Bound
equality-
customer more for his money in, on the psychology of all of us, and
206,000
"FOR SALE"
ever
This ^heightened new> status and
doctrine
of - dition.Today, the average
careful attention to efficiency in niques, together, spell the greatmanufacturing, both of which will ness of our coming days. A third
continue to be necessary in order factor is just as necessary for the
for our industry to maintain its pattern of triumph. And that is
there.
black
about
a
F. W. MacDonald Go.
of
I
the
a
highly competitive year. In television, assuming a continuation of
generally,
Ki«oiv\ aaa
-«v.
veiT clear view of the outlook for
ness
.
production
and
income
is the direct result of the sensing
of»the American people of this
new
fact—of the people's vastly
great cur-
since.
in
likelihood of defense business at
least equal to 1954 and further
gains in industrial electronics and
the replacement market total dollar volume for our industry in
1955, may well exceed the 1953
peak of $5.1 billion. This is a
gratifying prospect, but we must
not lose sight of the importance
of close control of inventories and
I believe this because I believe
that the'»great j increase in our
J
vxMAi4iin4«Ar«
national
of
one
lution
will ex-
in
indussets
production
' 14 Irolt K AArl A-f /lof
volume color set
gard to race or religion.
rents of revo-*
.
the 420 television stations now in
operation, more than 150 are al-,*
ready
equipped to carry color
broadcasts;
by* year-end better
and
units, compared to 13.4
phonographs
a# aIaa
fifty-four sales of elec-
whole of 1955, the electronics
industry can look forward, in my
satisfactory opinion, to a very good although
the
in
are
all
at
TiTfvr
of the largest
consumer
duction
shape
n
195|° Pe?h ' reflecting markets for our products
value the
Danr>
when he buys a black Pa"d at 3 rapid rate'
increased
the
^
a4aa
components,
of
which
Sprague Electric Company is one
and
in
r\
tronic
^'oar, with advanced
sold
Dollar volume
somewhat
the
most
at
past
taj* the largest of any vear
date.
sion
of
the
made
estimates
oeginning
tne
part of the
even
optimistic
the
i
Nineteen
largest
the
newaT not
region •
O
.
two
„
|
indefinite time.- Of
an
^
been
per
KTOSSffi
The
„■
0f
several
of world citizenship without re-
Fathers
Founding
our
dom from tyranny and status,
they set forth a doctrine that has
i
*
opinion, color is not likely
significant factor in set
for
office
j
■
achieved., Once the probr
economic production; are
soived, as they certainly will be,
there should be a ready market
infancy,
a.
■n?
.
is
iems
to do
Appli-
of
their
be
^jon
processes
mechanization
an*
When
articulated the philosophy of free-
Production before the latter part
of 1955j and it will be 1956 at the
earliest before quantity produc-1
cations of the electron to automation
.*
jn my
-
parts appear to hav«
increased
sales
last
and
year,
on
piexities of handling fhrfee signals
instead of one.
~
C:
into electronic and
communications apparatus and
control systems continues to increase. Other major markets such
as
industrial electronics and re-
slightly above $5 billion last year;
although a little below the alltime peak in 1953, this level is al¬
most double the industry's volume
as recently-as 1950, and represents
the
combined
output
of
some
2,000 concerns compared to less
•
i
economic climate.
our
verv
price, answers have not yet appeared to the high cost of manuresulting from the com-
the proportion of
that
evident
the
desDite
For
facture
the total going
Robert C. Sprague
parts
were
ing to "wait for color" before buyet
affect our political complexion as well
Says color television is great be¬
cause it "reveals reality."
of color television, can
as
^
simism
KA
Points out
problem of making color .sets
that can be sold at a mass-market
spread
4A
holds, will be
ably altered the thinking of many
people who, a year ago, were go¬
.
quadrupled through color television, which, he
a means of greatly increasing consumption.
economic communication, through the mass media
is about to be
being expressed a year ago,
$800-$ 1,000 price tags on the
sets built so far have unquestion¬
the
hefvy enginee^g Onslaught
"incentive
plateau is in the making," and "the dynamite for its lifting is
in color television." Says favorable impact of incentive system
was
account of the rapidly spreading
Inc.
economy," prominent broadcasting executive expresses view
that the "explosion which will lift business to another economic
active' interest
the
probably 20% above 1953 on
was
this small quan¬
even
WEAVER, JR.*
Stressing tbe increasing role of the consumer in our
While this has maintained
in color that
grams.
Looks for a 7 million output of TV black-andwhite sets, and about 200,000 color sets, with quantity produc¬
tion of latter to be attained in 1956. Sees gains ahead in other
fields of electronics, but warns inventories and costs must be
carefully watched.
difficult
By SYLVESTER L.
tity has been sufficient to permit
the general public in major mar¬
kets to witness live color pro¬
/
year.
The past year was
but
■ 1■
%-«
■
-
President, National Broadcasting Company,
was
units,
Sprague holds, though it is too early to have a clear view, the
industry can look forward to a very good though highly com¬
petitive
■■
output of color receivers in
doubtless less than 25,000
Total
industry in
the outlook for the electronics
on
mm
year
a
public, and is probably no longer
acting as a major depressant on
the sales of black-and-white sets.
1954
Commenting
and
today
is that the status of color TV
is much better understood by the
ago
Company
Board, Sprague Electric
of the
Chairman
between
ence
SPRAGUE
By ROBERT C.
a
Thursday, March 10, 1954
...
(1144)
16
satisfied
It has
if
people
that
the
with
standard
living of 1870, we could attain
a five-hour week.
Peo¬
that with
ple today can earn enough, work¬
ing five hours a week to buy ev¬
erything they could buy working
a
60
or
1870.
in
money
crease
70
or
The
even
80 hour week
theory
that
more
automatically
in¬
consumption will not hold
will
up.
No, the matter is more
...
Continued,
on
compli-
page
34
■If
.Sweeping South
out
Microwave
of Charleston, West Virginia,
under, and through the mountains to Princeare 88 miles of the world's most modern high¬
over
over,
-
ton,
West Virginia Turnpike, latest link
great system of super highways destined to
way—the
in the
connect
.•
It's
a
new
the Great Lakes and the Gulf of Mexico.
high-speed Turnpike, with
hour limit. Sudden
could
;
cause
a
obstructions, rain,
havoc. But
60 mile-anfog
Microwave
they don't—
keeps traffic moving with speed and safety.
At the first shadow of
trouble,
of 10 base
;; stations or 24 patrol cars can instantly alert every
other base and car the entire length of the Turnpike.
Through Philco Microwave, each unit can talk with
any other unit, or with all units in the 88-mile stretch.
;
any one
,
For the
super-high frequencies used in Philco
ANOTHER
radio
•
car
made
United
two-way communication
of the usual 15-mile
excess
range.
It is this
has
provide private
distance far in
same
«
privacy along
Philco
States
Microwave
Armed
Forces,
a
controlled path that
so
valuable
to
the
abroad, in building a world-wide network of defense.
FIRST
By beaming the Microwave signals from point to
point across country in a series of relay stations, full
horizon radiation is avoided, and the danger of de¬
tection or unauthorized eavesdropping is sharply
reduced. The system gives advantages over ordinary
radio communication, and at the same time is im¬
mune
to
the
storm
and flood hazards of
tional wire line systems.
the
message through.
And the
Microwave units all
over
the world—more than all
other makes combined !
••
This
development of" Microwave is yet another
example of the unique integration of Research with
Application that has enabled Philco to contribute
so
importantly to our country's strength, both
in civilian fields and in defense production.
And the end is not in
sight!
conven¬
Year round, Microwave gets
flexibility of Microwave speeds
FROM
tude of military functions. Relay, teletype, tele¬
graph, facsimile, and remote control by Microwave,
as well as
straight voice communication, are all in
active use. Today there are more than 1,000 Philco
both at:home and
snow, or
Day and night, around the clock, invisible Vhilco
.
'
a
a
multi¬
PHILCO
RESEARCH
18
(1146)
,
Wash.,
New
Developments in
origi-
programming
with
The Commercial and Financial Chronicle
(
Transistorized Radio Coming
nating in Yakima. Many stations
are considering similar operations "
and this could be a very signifi¬
cant
trend
in
the
broadcasting
Television and Radio
Benjamin Abrams, President of Emerson Radio and
Phonograph
Corporation, tells shareholders a completely transistorized
radio will be placed on the market
by April 1.
industry.
By W. It. G. BAKER
Germanium
Vice-President and
Electronics Division,
General
Manager
The first
General Electric Company
general
Dr. Baker lists
principal developments during 1955 in the
(1) higher power in broadcasting; (2)
of 100 in television stations; (3) more public
as
increase
television, with sale of 200,000 sets, and (4)
the quantity production of general purpose transistors, along
with other advances and applications in television and radio.
Estimates total sales of TV sets, including color sets, at
follow in 1955 the
©f
will
fast pace
same
development and advancement
that
has
marked
through
Three sizes of germanium recti¬
fiers
industry
its
progress
the
laboratories toward increasing the
size
screen
inch
to
during
The
(1)
been
The
tric's
more
Dr. W. R. G.
Baker
service
of 1955, there
television
least 530
at
be
in the United
States, an increase of 100 for the
year,
and it is estimated that
more than 50%
of operating sta¬
stations in operation
able
be
will
The
transmit
to
sales
television
000
the
life-like
its
in
Public interest
color sets.
quality of color TV
as a superior
success
entertain¬
television
of
ment.
(4) Retail radio sales are esti¬
mated
at
when
there
6,500,000 units for 1955,
will
be
strikingly
in
advances
construction
chassis
radio
through
the
use
of
printed wire boards. Nearly 1,000,000 units of the total radio
production will use printed wir¬
ing.
(5) The first quantity produc¬
of
general
tors will be
transis¬
purpose
achieved
in
1955.
(6) Great accomplishments will
the research, development,
mark
systems engineering and produc¬
tion of military electronics equip¬
ment as the growing complexity
and
volume
of such
equipment
brings out the need for integra¬
tion of
and
more
more
individual
functions.
It
lighter,
also
more
has
the
of
television
United
increase.
to
will
the
In
1954.
(8) Use of two-way radio
We
industry sales approximately 10%
higher than 1954.
(9) Continued growth of elec¬
tronics applications and increased
use
of electronic tubes for de¬
con¬
look¬
are
the end
year.
equipment
available
to
increase
enable
made
was
stations
to th£
power
The
growth
ing
diodes
ogy
The
in
Continued
5,800,000
to
maximum
television
units in 1955 will represent a re¬
duction
from
the
near
record
level in
cline
©00
will
be
expected
vision
is
1954.
sets.
However, this de¬
offset
sales
Since
equivalent
in
by the 200,of
color
each
dollar
tele¬
color
value
set
to
about three monochrome
units, the
industry will operate at
total TV
substantially
the
same
dollar
level in 1955.
In
color
strides
television,
were
made in
is
radio
finding
are
two-
valuable cost reduc¬
a
tion tool in the plant.
There also
is considerable evidence that the
trucking industry will greatly
pand its
during the year. Total in¬
dustry sales of mobile radio
equipment will be approximately
10% above those of 1954.
There
is
increased
interest
in
point-to-point radio commu¬
by
governmental
and
UHF amplifier allowing
transmission
of
1-megawatt
of
private
a
power, the FCC maximum.
GE
also announced a 23-kilowatt unit
needing
areas
than
more
a
12-kilowatt amplifier but not the
maximum 45-kilowatt amplifier.
In
1954,
first
also
we
shipped
50-kilowatt
which
with
provide
VHF
our
units,
high gain antenna
a
VHF
broadcasters
the
maximum
For
broadcasters
allowable
with
power.
desiring
maxi¬
power with a low-gain
tenna, the company also has
mum
nounced
an¬
an¬
100-kilowatt VHF
a
am¬
plifier.
of
microwave
equipment
organizations,
petroleum
power,
especially
turnpike
and
users.
Sales
of
carrier
which
ment,
current
provides
equip¬
telemeter¬
ing, protective relaying and tele¬
phone communications for private
utilities, are expected to continue
at 1954 levels.
applications
of
new
components such as transistors,
miniaturized
circuits to
ment
parts
and
printed
communication
will
continue
equip¬
the
trend
toward smaller gear with reliabil¬
ity
increased
above
the
present
150
to
stations
transmit
cities
By
will
will
have
color
available
the
of
end
than
more
1955,
50%
will
transmit
slides
of
have
network
Equipment
to
it
-
By
believed
the
operating
equipment-to
color
in
increase in 1955.
local
live
contribution
with
single tube color pick-up
a
its
camera.
are
cum¬
bersome
models
requiring three
tubes, are more compli¬
cated to keep in
adjustment, and
pick-up
and
more
expensive
to
operate
need
for
possibility
trend
of
in
TV
booster operation.
in August the
essary
integration of
1955
is
satellite
the
and
GE announced
availability of
equipment
and
the
nec¬
1955,
greater
than
first
order calls for
engineering
transmitter to be located in
Pasco,
a
1-kilowatt UHF
more
President
report that nearly
on
for
will
be
systems
broader
a
scale
before.
ever
General
Electric's
Heavy Mili¬
tary Electronics Equipment De¬
partment in Syracuse is on the
threshold
of
electronics
which
in
the
will increase further
defensive
and
advance¬
future
near
military
offensive capabili¬
our
These advances
cover
many
fields
including volumetric scan¬
ning radar, air surveillance radar,
height finding radar, communi¬
cations, sonar, guidance and con¬
trol
mechanism,
techniques
and
systems.
With
Discussing
that
as
defense,
emphasis
by
the
Defense
on
air
of
quantity
powerful
radar
production
has
been
color
television,
many
as
far-flung network.
the
recently
This
of
in¬
announced
powerful height-finding radar for
the
Air
Force.
It
is
being
Mr.
Abrams
1,000,000 will be made in
into color TV purchases
to be
consumer
Benjamin Abrams
hopeful, however,
1956.
stampeded at this time
is completely understandable in view of
the 21-inch
"The advent of
is expected to lower this resistance
to
screen
a
degree,
but the key to color receiver sales still lies in
extensive and regu¬
lar color programming."
President predicted that
s
sion receivers will be produced
by
6,000,000
radios,
exclusive
of
total of
a
7,500,000 televi¬
the industry in 1955 and that
automobile
radios,
will
be
made
this year.
"However, in 1956, he said, "the radio dollar sales volume
should double that of 1955 since the
widespread use of transistors
at that time will result in radios with
longer battery life, better
performance and greater utility."
duced
in
both
versions
mobile
and
greatly
to
defense
of
has
and
bolstering
the
cohtinent.
fixed
contributed
the
North
radar
American
This
equipment also
is going to countries
receiving aid
from
the
U.
S.
under
the
Mutual
Defense Assistance Pact.
Shipments of airborne military
electronics equipment by General
pro¬
kilowatt
transmitter, to provid
marked VHF power increases.
Improvement
in
quality
an
performance of the entire stand
ard
Light
Military
Elec¬
tronics Equipment Department in
Utica, N. Y., during 1954 were
at the highest level since World
War
II.
Military sponsored research
development
projects
continue
and
involving
in
substan¬
tial
amounts, and the long-range
prospects for production of mili¬
tary electronics equipment appear
good.
GE
industrial
and
transmit
ting tube line through applicatio
of
improved
engineering tech
niques,
better
factory
control
and
inspections.
New
Electric's
special purpose cathod
tubes for radar and industria
ray
purposes
will offer increased de
tail
usability.
Cathode
should
extended
and
tube
life
be
ra
b
improved engineering
technique
and
manufacturing facilities.
Increased
use of
the high-reli
ability receiving type tubes
th
Five-Star line in
industry as wel
as in
two-way communications i
—
predicted.
plans
The
company
als
its "Service
extension
of
The
Light Military Department Designed" line of
receiving tubes
is active in many fields
including, designed to afford better
per
fire
control
fighters,
radar
for
bombers
airborne
and
control
equipment
formance
the
of
an
see
improved electrostatic
gun
which will lower black-and-white
picture
tube
costs
General
while
retain¬
ing the performance of the
expensive
electromagnetic
more
tube
in general use. The new
gun
offers
improved
picture
detail
in
two
major
devices,
the
good focus
across
the
face of
screen.
field
continues
become
quirements
this
field
more
of
its
General
to
critical
expand
in re¬
products.
Electric
In
plans:
Commercial production of tele¬
vision camera tubes—image orthicons
and
developmen
areas—solid
such
tha
electroni
stat
as
ferrites, semi
conductors, dielectrics and phos
phors, and the applications of in
formation
theory.
During
1955,
Signal
a
Corp
contract will be
completed at th
GE Advanced
at
and
the
on
Electronics
The industrial and transmitting
tube
Electron
convinced
of
industry depends
now
and
Electric
Laboratory is
advancement
use
con
in
Research
ics
the first
unde
different make
and models of television
receivers
for
Electronic Tubes
replacements
found
The
This year will
as
widely varying operating
ditions
guided missiles.
vidicons;
ceramic
Cente
Cornell University for
automa
tion
equipment
tomatically
onto
to
assemble
electric
au
component
printed, wiring boards.
At
the
GE
new
Laboratory
at
Microwav
Stanford
Univer
sity, four tube development pro
grams were initiated
during 1954
and
will
be
continued
throug
1955.
mitting tube
lighthouse
trans¬
line with improved
They will be supplemente
by eight to ten more applied
re
performance
at
search programs.
higher
frequen¬
cies;
Use
the
of
strons
in
powers
of
15-kilowatt
multiple
to
45-kilowatts
kly¬
provide
at
UHF
frequencies.
A
tube,
These
development of high
re¬
quired, and the Heavy Military
Department is supplying a large
percentage of' the radar used in
cludes
of
the still-limited
programming," Mr. Abrams said.
A
added
said.
100%
make have printed circuits."
we
the view that no more than
100,000
color receivers will be produced in 1955. He
is
In
need
Quiet-
voiced
and
emphasis
the
on
development
our
tremendous
in
functions.
individual
more
Department
maintain.
Another
advancement
phases of military opera¬
impose greater complexity
and
dependence
On
electronics
equipment. This brings out the
placed
film was. shipped
to
1954, and the rate of
these shipments will continue to
are
Emerson's
to
ance
them.
All other color cameras
pleased
tions
Military Electronics
Continued
be
this field has been rapid
in
progress
productive,"
am
many
network
•
is
for
"I
to
handle
Requirements
and
98
and
stations
"Our
and
color.
to
subsidiary,
Manufacturing Corporation.
Heet
able
be
color
close
will
manufacture of printed circuits at the Newark
plant of its wholly-owned
earlywarning radar, communication
and navigation
systems, indicators
and display
equipment, and guid¬
year-end,
network
radios,;f. This " production
and
high standards.
TV.
for
cuits
greatly accelerated."-,'He. also announced that
the company has established facilities for the
electronics
Future
broadcasting in¬
dustry also is beginning to swing
color
the
stockholders, "and we are currently
engaged irv substantial production of these cir¬
nications
The television
to
by the company.
in printed circuits
large scale," Mr. Abrams
ex¬
of radio communica¬
use
tions
for
significant
monochrome
growth
limits allowed by the FCC. Gen¬
eral Electric was the first to an¬
for
told
market
activities
were on a
Emerson
use
nounce
during 1954
Equipment
expected
in sales of two-way communica¬
tion equipment for use in mobile
applications.
More
and
more
ties.
of
is
operation.
Communication
Broadcasting System, has made
sales
devel¬
semi-conductors
temperature
business.
retail
of
area
the
on
"The reluctance of the
toward higher power devices and
the design of silicon diodes, rec¬
tifiers and transistors for higher
ments
Television
expand¬
high quality
improved technol¬
significant
opment
programming also will increase in
1955. In this area, General Elec¬
tric, in cooperation with Columbia
estimated
computer
an
a
"Emerson's
will be able to satisfy.
fense, industry and entertainment
will give added impetus to the
already rapid growth in the tube
The
the
for
which
placed
the radios
of
market
be
compo¬
the
stations
com¬
munication in mobile applications
will continue to expand with total
sta¬
States
be operating by
1954,
rectifiers
the volume of business in
Design of these
into all types of equipment
manufacturers
ing forward to accelerated growth
in 1955, which means that at least
facilities
(7) New designs in germanium
will nearly
quadruple
attractive
possibilities.
number
in
tinues
and
alternative
industry is providing
way
The
than
size
which
efficiency
Addressing
meeting of the shareholders of the Emerson
Phonograph Corporation in New York City on Feb.
2,
Benjamin Abrams, President of the
company, predicted that by
April 1 a completely transistorized radio will
Radio and
advan¬
many
is
reduction
tions
for
the year should total about 5,800,000 monochrome units and 200,-
medium
the
Elec-
radio sets
Television Broadcast Equipment
of
assures
General
model
set
maintain.
530
network color shows.
(3) Retail
radio
cost
public.
the
(2) By the end
should
television
better
in
for
of
one
table
efficient and easier to service and
This
result
methods.
tages of the printed wire chassis.
power
rating.
in
new
illustrated
has
sta¬
increase
their
tion
ad¬
application of printed wire
boards
con¬
as
new
satisfactory
a
It
has
radio
power
more
tions
making
that
vision.
will
will
expec¬
justment to the expansion of tele¬
to
broadcast¬
tions
sales
radio
6,500,000 units in 1955
a
good
comparative
indication
an
smaller
nents
available
now
improved
of business in 1954.
standing with previous years.
The
higher
tinue
retail
indicates
is
are
feature
will nearly quadruple the volume
of
tancy
the
trend
and
the picture
Radio
year:
ing
21-
have
laboratories
continued to improve
years.
in
acceptable
an
The
size.
quality.
These, I be¬
lieve, will be
the
principal
developments
De¬
industry.
these
of
available.
six million.
electronics
milestone
a
devices has
progressed to the point- where
excellent preformance can be ob¬
tained.
Two
transistor
types
destined largely for military and
commercial
equipments will be
velopment
interest in color
The
in
transistors
constitute
electronics
the
in
quantity production of
purpose
will
1955
electronics industry:
an
Thursday, March 10, 1954
...
new
th
kly
strons, microwave receiving tube
and
microwave oscillators.
ies also
will
be
made
of
Stud
the
ap
plication of these tubes to radar
25-kilowatt transmitting
used
cover
power
in
the
company's 50-
communications,
measures
and
problems.
counter-
(tab
Number 5410
Volume 181
The Commercial and Financial Chronicle
...
tion
The New
reserve
The CIO
fective
La).
o
bill,
The
jea
But
we
H
e
s
op-
R
2967 because
fniinrp
Of
itc
i
We
not
are
which
opposing
of
ganization
the
or¬
force
reserve
a
is,
in
the
Secretary
of
the
Army,
Mr.
large, fully organ-
Stevens, ".
.
.
words
trained and
ized,
We
the
of
forces
that
R.
the
of
2967, are listed
as
composition and in the
of readiness,
state
ing
the
the
necessary
without reduceffectiveness
combat
Active
of
Forces."
"To
military
-
^
To assure minimum irr pact
essential civilian
(3)
on
c_Jvlt es„0^
While these laudable objectives
we
of Defense in the form
believe
partment
of H.
R. 2967, because we
all
violates
three
of
these
ob-
jectives;
The National Reserve Plan does
not
of
effective
does
not
equity.
vide
reserve.
does not prominimum impact on es-
for
civilian
Let
activities.
examine
us
each
these
of
objectives in turn:
oppor-
We
country.
our
bring
forth
based
on
this
believe
practical
a
that
proposal
voluntarism.
Committee
training
to
We
urge
direct the
De-
containing
program
safeguards
proper
a
™
„
and
necessary
11
we are
to
effectiveness
on
u
•
doubt
the
of
that
grounds
perhaps prethe military
to
seem
,7
plan
present
be
ex-
clusively within the sphere of the
military. But we have been impressed
and
more
with
the
in recent
more
fact
that modern
armed forces require specialists,
The days when a mere six months
training plus the equivalent of 6
weeks
(1 night
a year
week for
a
wee^Sj pius 2 weeks at training
camp)
seem
to
Precise hands,
effective
an
have
army,
capable hands
Modern
passed.
and sales,
In research,
per-
sonnel policy. But there is every
r^ason to believe that the effec*lve. use of our military resources
increasingly
dependent
are
It
is
For the
before
this
Congress,
However, the Defense Department
has come
up
with a proposal
would maintain an
Plan
every
"effec-
force by compulsion,
would
that
require
single
young
assigned to
screened,
man
a
be
reserve
•
,
A
fore
statement
the
House
„
r>
1
*
u
by Mr. Buckmaster beCommittee cn
Armed
Services, March l,
in Massachusetts
-
a
leader in the nation.
more
than 18,000 men and women who see
and finer electronic
population, so that
Services are compelled
in the increasing
products there is
plus
six
1955.
http://fraser.stlouisfed.org/
h
Federal Reserve Bank of St. Louis
man
a
ment.
weeks
a
deep
sense
of the whole
such
months
the
weeks
camp,
week in
an
a
year
in
Excellence in Electronics
plus
RAYTHEON
years
r.
•
f
fu
nrnhlPmo
,
COMPANS?
t
II
WALTHAM
nf
."
1
prODieiTlS 01
training skills curriculum, direc.
MANUFACTURING
RAYTHEON
of
training and specialization; but it
will not make six-months' trainees
in*0 a broadly effective Armed
f
■
a
armory
Has already had several
porce
i
specialists
one night a
might suffice
to keep in readiness a soldier who
summer
■
Raytheon organization.
great numbers to
modern military establish-
Two
of pride;
year" training
a
produce
in
six
their handiwor
utility and consistent growth
i
of their specialists.
that
;
supplying consumer, industry and government with new
skills
frequently not found
obvious
needed
before
reserve
willing hands have worked to make Raytheon the largest I
upon
c°mposed of a group of highly 1mportant persons who cannot be
™alne<? ln
11 seve^al years.
To make matters worse, the
production, accounting, supervision, management
electronics company
existence of an armed force
cannot
The
the spirit of Raytheon is expressed in the
cooperation of skillful hands.
government
tive"
-
military operations are increasing
in complexity at a rapid rate. If
the equipment needed could be
used
by people with relatively
little
training
and
experience,
such changes might make only a
committees concerned with mobil-
which
sensitive hands, practical hands,
training in bare essentials
build
to train many
military has not discussed
the essential ieatures of a reserve
4.
\4
,c0™PuIs°ryProgram
6 effectlveness o£
theAsreiaymen,
the Armed
Effective Reserve Force
or
44
fense Department to develop and
present
to
Congress
a
reserve
The
ization
that
page
keep-
in
in the civilian
1
either
on
THESE HANDS
'
plan
is proposed
it
Continued
the Department of Defense should
required
'
.'1
course,
democratic principles
plan
The
sential
1
the maintenance
The plan
provide for maximum
provide for
an
draft-
another
drafted for two years.
Of
Plan obviously hope that by
small difference in military
sup-
oppose the National RePlan, presented by the De-
port,
serve
it
wholehearted
our
and
in
could
mobilizing the Reserve Forces.
receive
one man was
months
re¬
enough faith
stnctly voluntary basis
years
provide maximum
obligation for
qualified young men."
(2)
equity of
all
have
sumptuous
"To maintain effective ReForces at required size and
serve
effective mUitaw
an
We
Presi-
iohows.
(1)
was
six
in
for
up
program were sufficiently developed and comprehensive. We
objectives
of H.
10^
accomplish these
National
dent's National Reserve Plan, the
basis
years
centives and the character of the
as-
■ends
The
serve
for
ed
Proponents of the National Re-
only that
in America will
more
th$ reserve force will make
a reserve.
of
the
Department
the
will
Plan
.serve
requirement of 3V2
is
Re-
the
of
Defense
National
Plan, which purports "to
American youth would respond on
a voluntary basis to a reserve program, if the inducements and in-
reserve.
hesitant to accept
:surance
Voluntarism
However,
.
completely with
of Defense that
nation
needs an
active, mobile,
well trained,* well organized
are
We cannot see the'justice of this
We cannot see that the
proposal.
built-in inequities,
many
years
incentives and inducements to develop a voluntary reserve plan.
We are certain that such a pro¬
posal would make compulsion un¬
necessary.
We
are
sure
that
.
agree
we
re-
6
force
reserve
dis¬
."
the
the
equipped
Department
warmed
effective
additional
an
draft-
and required to
years
•J
tunity under proper conditions of
incentives and inducements, can
organize, develop and maintain
•?"??,ive fes?rve .forces °n a
of
provisions de¬
effectuate a strong re¬
force on a voluntary basis.
signed to
serve
Plan.
inninHft
Buckmaster
L. S.
an
insures
every young man
honoraoie
States citizens, given the
other
for
n
of
It
men
six
9U>
there
Congress of Industrial
serve.
re-
purposes"
o
the
as we can see,
tary obligations for all qualified
the,program does not insure the. individuals,"
actually
contains
force.
equity with the
only
serve
force
"forces America to believe tnat United
serve
and
Reserve
that
to
reserve
who
for
Or¬
ganizations is concerned with the
for
strengthening
the
than
mobilization of
f
"to
provide
of
believe
drafted
training
' °f Provide maximum equity in mill- the fact that
^Pce™f^ a As far
this nation. 4°"Lrth®
development
serve
individuals
are
the
for two
ed
jn the
Maximum Equity
We
in
will be
.
ef-
We are
with
years
all
or
of
ignored in planning for over-all
port the stated
this
program.
force
effec-
months
Compulsion is the basis
the
of
sup-
ohippfives
P^an.
ine
(D.,
We
_
reserve
an
an
,
,
to organize compulsory
concerned about,
volunteer
strength in skills, experience and
morale.
1
forces.
are
armed
requiring
that
program.
other
face
gressman
brooks
trained
assurance
charge from the armed forces if he
fails to meet the requirements of
Con-
Services Committee,
tively
need the
and compelled to attend
military meetings of his unit or to
House
the
of
Chairman
Armed
we
of
In-
care
years.
19
unit,
here today to
appears
H. R. 2967, introduced by
oppose
the
Universal Military Training
a
the military for 8 to 10
,
We
military security through Selective Service than by institut¬
ing
be compelled to be in the
before it asks the Congress
for powers
serve
tain
Let the Defense
experience.
gram
*
important to main¬
more
De-
the country would have
and
CIO spokesman says bill now pending in
Congr:ss vialates the objectives desired. Holds plan does not
provide for maintenance of effective reserves, nor does it pro¬
vide for maximum equity or a minimum impact on essential
Contends it is far
the
licly directed its attention. There
is no real substitute for training
tary Reserve plan,
civilian activities.
knowledge,
stead,
the objectives of the President's proposed Mili¬
While lauding
our
Department come up with a pro-
Veterans' Affairs
on
of
partment of Defense has not pub-
By L. S. BUCKMASTER*
Committee
of study, that, at least to the
best
Military Reserve
Plan—A Step Toward UMT
Chairman, CIO
(1147)
.
.
9
54, MASSACHUSETTS
]|
20
The Commercial and Financial Chronicle
(1143)
net addition
Changes in Employment
And Unemployment
lion
and
The members of this panel have
been
asked
questions
Nation's
to
answer
the
on
series
a
of
state
in
economy
of
the
the light of
objective
the
f Th
o
Em¬
e
Act
1946
to
"promote
maximum
pro¬
duction
and
purchasing
power." I shall
address
first
your
question,
namely, what
have been the
economic
v e
1952.
shall
I
de-
lopments
discuss
them
in terms of the labor force, em¬
ployment and unemployment, la¬
bor turnover, and hours of work.
I have here with
which
several charts
me
these
illustrate
develop¬
Our first major concern is the
working population of the coun¬
try. There has been a substantial
United
years,
in
the
States
labor
force
in
the
the past eight
over
amounting to nearly seven
workers, or more than
(See Chart I.) This growth
million
10%.
is
sometimes
marked
each
in
the
when
school
labor
market
winter,
three
the
*A
fore
26,
and
with
a
In
Joint
in
of
range
is
months
lowest
1954,
counted
are
ices
to
55
the
they represent employment
the
of
the
part of the Nation's labor force
other
chart
with
vary
The
are
from
men
consistently
are
force.
rates
of
majority
great
20
in
than
the
the
tural
less
from
to
the
In
early
shown
the
of service.
years
of the period
years
the chart, 1947 to
on
forces
armed
1950,
numbered
roughly 1.5 million. In the later
1951-1954, they exceeded
years,
million.
three
of
this
forces
As
a
expansion
the
after
consequence
in
the
armed
incident
Korean
bulk of the
65
likely
more
to
conditions,
because
the
the
large
For
not
again reached
the
until
expected
was
1953
be¬
II
millions
older
force
the civilian labor
year
averaged 64 Vfe million.
With these facts
in
to
a
circumstances.
who
work,
ordi¬
jobs.
conditions,
patriotic
no
jobs
War
took
persons
not
when
incentives
hard
to
get,
housewives,
and
are
students,
workers
do
not
bother
to
tion
labor
varies
force
and the choice of
cannot
basis
of
the growth of the population and
ticipation by
different
12
labor
and
men
age
mated that
Nation's
next
in
trends
recent
of
is esti¬
growth of the
labor
months
par¬
women
it
groups,
the net
total
force
force
will
be
in
the
about
700,000.
At
cline
340,000 is anticipated
the
the armed
of
recent
the
same
time
individuals, one
complete cer¬
tainty what the net additions to
the
with
say
will
force
labor
be.
I
have
estimated that the net addition to
the
civilian
year
will
workers
labor
nearly
be
but
force
could
it
for
next
million
a
vary
either
than
forces, according to a
by the Presi¬
likely that about one-
statement
expanded
million
by
the
the
61.8
high
total
to
labor
million;
Miss
Committee
Washington,
in
Wickens
on
D.
the
C.,
be¬
Eco¬
Jan.
1955.
CHART
LABOR
Employment Developments
in
employment and il¬
shift
in
emphasis
from
goods
payroll
upon
re¬
ports to the Bureau of Labor Sta¬
tistics
by
a
large group of Ameri¬
establishments. In 1953, these
can
numbered slightly
50 million.
(This is a
employees
than
less
level
smaller
than
Census
the
total
by
cause
the Census includes domes¬
tic
not
million
be¬
self-employed
servants,
unpaid
five
about
family
workers
and
who
are
in
payroll reports
employers to the Bureau of
covered
from
Labor
Statistics.)
Of
lion,
only
three-quarter million
manufacturing. The rest
in
was
concentrated in
was
rise
the
1947, amounting to 4.8 mil¬
services
alone
and
trade, finance,
Trade
government.
for
accounted
million
IV3
Coming
now
velopments of
find
to the specific de¬
1953
and
1954,
we
employment in manufactur¬
ing and allied activities showing
the greatest fluctuations. For the
1954 as a whole, the number
employees declined by a net
year
of
million from
of 1.4
1953.
Most of
this
decline (1.2 million) was in
manufacturing. About 300,000 was
manufacturing.
force employed?
Since the end of
been
On
the
other
the industries which have
expanding since the end of
school, with the other 275,000
becoming
available
as
civilian
distinct trends.
but
workers during the year. Taking
these
two elements of increase
ployment and the rise in nonagri-
ployees
cultural
and government combined.
has
fifth
of
these
men
will
return
to
then,
there
may
be
a
the
decline
The first has been
in
agricultural
occupations.
the
been
I
em¬
The second
trend
toward
the
own
an
or
War
II
continued
significant
increase
The
either
in
of
annual
small
There
was
170,000
about
finance
their
make
to
gains.
held
em¬
and
averages
services
which
I
levels.
They
contours, however—
and downs within the
ups
Manufacturing
employ¬
ment, for instance, reached a low
point on a seasonally adjusted
basis in late summer and has been
'♦■■■■■"
rising since.
The
the present em¬
ployment situation, obviously, is
manufacturing, especially hardgoods manufacturing, where the
of
crux
number of jobs is still well below
earlier
levels, although the trend
upward. Previous peaks,
is
now
I
must
emphasize,
sarily
ties
broke
When hostili¬
in
out
stance, when
we
Korea, for in¬
anxious to
were
defense
our
hurry, there
of
not neces¬
goals in any
are
meaningful
of the word.
sense
lavish hiring
anticipation of
in
needs, some of which never ac¬
tually materialized. As a result,
the
metal
creased
goods
industries
employment
in¬
sharply
very
in the first eight months after the
Korean
outbreak, and then made
substantial
no
until
the
gains!
upturn
thereafter
which
began in
the fall of 1952.
The bulge in employment
levels,
starting at that time and continu¬
ing until the downturn in mid-
1953,
the
not
was
of
result
normal
and
mands.
Instead, the increase
sulted from
orderly flow
a
almost
Pent-up
came
demand
consumer
was
released by the removal of credit
restrictions in
effect
May 1952, but the
delayed by the steel
was
strike
in
the
of
1952
Relaxation
of
and
summer
concentrated
in
and
the
early
materials
demand.
Coinciding
its
business
very
expansion
same
outlays
for
this
demand,
consumer
culmination
1953, at the
fillip to
with
the defense production
reached
1953.
controls
in late 1952 gave an added
great surge of
thus
final
in
time
early
that
plant
new
and equipment also were
rising
rapidly as a result of long-range
plans.
The
current
goods
seasonally
as
in
that
to
adjusted)
of
durable
(December,
are as high
postwar month before
1952.
This is not to say
any
early
mum
levels
employment
the
or
present levels
desirable.
are
opti¬
But I do want
point out that the peaks from
which
we
in
descended
the
functioning
sense
were
of
economy
a
abnor¬
smoothly
whose
POPULATION AND LABOR FORCE
14
12
14
2
I
4
2
0
EMPLOYEES IN NONAGRICULTURAL ESTABLISHMENTS
BY MAJOI INDUSTRY DIVISION. 1939-1954
Males
2
4
4
•
14
12
14
1952 1953 1954
1955
or lam*
'•«"
hMtllM C«
1939 1940
1941
1942 1943 1944
to
simultaneously.
CHART HI
mumons
re¬
series of special de¬
velopments, all of which
head
a
of de¬
FORCE
Females
in
economy
was a
manpower
mal
CHART H
move¬
general
the
year.
was
World
It is
the
the- long-term
and
obscure
a
since
April 1954
vm*
These
services.
to
based
are
the war, and indeed over the last
half century, there have been two
dent.
ments
rebuild
the
BY ACE AND SEX
1947 1948 1949 1950
1951
1947
detail the makeup of non-
more
agricultural
Now, how is this flexible labor hand,
1947-1955
wree
in
mining and transportation,
which are closely associated with
way.
in
50
has
in
de¬
a
between 1947 and
Chart I, agricul¬
revealing
a
participa¬
circumstances
with
tations for
On the
on
have been using are excellent for
months
I should like to discuss the expec¬
1955.
of
of the increase since 1947.
work.
Because
background,
as
seek
jobs,
depend
on
other
are
when
or
absorbed in the armed forces.
was
num¬
are
during World
of
did
many
net
market
extent
narily
addition
cause
force
inabil¬
or
proportions which
example,
there
1950
over
labor
the
retirement
labor
Under
in
of
of
women
bers of these groups do have
and
civilian
force
and
ity to work. However, large
began, the civilian labor force has
not grown in every year.
As a
matter of fact, the peak annual
average level of 63 million in the
labor
out
were
production
My next chart (Chart III) shows
shown
housewives, and the
men
serv¬
55 million in 1953.
over
force after
some
en¬
participation
groups
economic
as
the
employment
themselves
tion of the members of the armed
actually
employment has
declined
from SV4 million to 6V2 million,
according to report? from the Bu¬
reau
of the Census. Nonagricul-
In
April 1954 a majority of
teen-agers were in school, a ma¬
jority of adult women reported
Also, of course, a large propor¬
more
tural"
data
who would other¬
men
many
wise be in the civilian labor force.
economy
where
were
years
lustrates
the
around
in
1954, shown
thereby
providing
considerable
flexibility in the labor force. *
for
point
together,
from
1947
statement
Report,
force
summer
averaged
the
nomic
labor
the
within
childrenenter
million
low.
force
by
downs
The
year.
largest
obscured
and
ups
the
in
as
since
This past
ments.
growth
forces
labor
by
age
labor
armed
today's
and sex in April 1954
(Chart II). You will notice that
my
observations
to
Aryners Joy Wickens
by
million.
The
of
one
mid-century
in the production of
gaged
In
illustrated
and
goods (47%).
chart which shows the labor force
em¬
ployment,
since
in
and
The .makeup
-
By
the American
(53%)
by
in
engaged
the
Force
be
were
of goods
services.
mark,
workers
conditioned
Ameri¬
the
the production of
the
is
in
out of three in
reached
Components of Today's Labor
can
force
production
he
changes in the economic climate.
force
labor
can
As
fact, in 1900, two out
workers
will not work, and
or
choice
that
whether
three
the
away
production of goods.
matter of
of
forces return to the civilian labor
ployment
of
million;
64.7
1950,
67.8
it
choice
production of services and
from the
a
work. "In the
is every man's
seek
States,
woman's
she will
or
Miss Wickens discusses economic developments since
;
actually
United
Labor
1952 in
terms of the labor force, employment and unemployment, labor
turnover, and hours of work. Notes an increase of 7 million
workers—a rise of 10% over the past eight years. Exhibits
components of today's labor force and how it is employed,
and analyzes the nature of present unemployment. Points out
the business recovery of last autumn and winter has reversed
the downward trend in employment, though there are regions
in which unemployment is still serious.
during 1955.
persons
not
Acting Commissioner of Labor Statistics,
U. S. Department of
mil¬
However, this is by no means
a
fixed figure.
It depends upon
the decisions of millions of people
as
to whether they will or will
WICKENS*
By ARYNESS JOY
labor
civilian
the
to
force of something close to a
Recent
Thursday, March 10, 1954
1945
>944 1947
1948 1949
1959
1951
1952
1953
»S4
ma-
Volume 181
Number 5410
jor impetus is
orderly flow of
an
and
consumer
SHELLY OIL COMPANY
de¬
investment
mand.
During the final months of 1954,
<
there
the
be
Trade,
substained
better
was
could
to
there
and
is
ASSETS:
reason
every
more,;sensitive
noniarm
fall
the
downturn
in
01954
tial
in
with
to
1952
.
..
.
current
Investments and
assets
'
.
.
19,941,051
14,139,634
17,669,700
17,097,113
16,732,001
25,576,422
25,800,253
25,187,883
468,148
440,248
71,143,584
63,278,665
56,059,518
53,196,746
2;416,817
1,331,182
1,151,366
1,308,242
1,275,368
216,654,592
201,828,604
187,761,735
176,082^37
155,934/>55
290 077
224,785
292,667
443,415
274,528,155
252,484,433
233,894,012
.
.
.
-long-term receivables, less reserves
.
.
.
...
Property, plant., and equipment, loss reserves
\
Prepaid and deferred charges
The
.
.
Total
assets
..
.
.
.
.
.
■ >«
.
.
.
-
.
...
.
.
.
.
,
.
.
.
.
.
.
t
•
$291,842,613
„
workweek for the first time since
Notes
January 1950.
Accrued
■
also
several
before
and
By
Funded
the end of the year factories were
once
again averaging
than
hours
40
Because
little
a
more
the
on
15,468,031
15,152,462
12,015,002
12,266,817
12,484,651
11,503,523
$ 28,058,133
28,647,869
27,734,848
27,637,113
25,540,626
8,818,000
10,535,000
11,600,000.
12,400,000
13,200,000
102,580
166,304
262,200
598,665
939,029
536,444
513,576
500,417
507,438
499,998
1,271,987
1,296,943
958,621
214,462
787,205
143,652,930
liabilities
current
American
workweek
in
is such
Unearned
143,652,930
71,826,465
65,296,790
65,296,790
36,286,328
compensation and public liability risks
income
Common
.
stock
important indicator of
an
the general
and
it
economic
expect
developments,
develop additional
to
formation
the
on
extent
of
53,263,483
36,286,328
86,338,399
90
$291,842,613
274,528,155
252,484,433
—
we
....
liabilities
Total
-
89,715,533
.
Earned surplus
leads
often
so
,
109.402,539
Capital surplus
state of the economy
because
other
industry
14,037,103
16,632,867
debt
Reserve for workmen's
information
T--
•
8,481,876
income
on
Other deferred obligations
week.
a
509,623
210916,392
i
19,576,257
$
payable
accounts
taxes
Total
the
upturn.
months
employment
—
953,216
68,366,416
233,894,012
210,916,392
in¬
over¬
time hours and
part-time work in
industry in this com¬
American
ing fiscal
t
—
*
The workweek be¬
to rise in the spring of 1954,
recent
i
LIABILITIES:
January figure below the 40-hour
gan
:
...
u.
"T
tory workweek whicn brought the
17,712,171
21,825,067
,
—
fac¬
the'average
13,659,508
27,429,314
18,364,539!
$ 28,758,172
.
.
sev¬
-
1950
1951
-
substan¬
a
1953
$ 72,481;! 27
•
reserve"
assets
current
Total
general
employment.
began
decline
1953,
the
before
Other
the
work¬
began
spring -of
DECEMBER 31,
AT
507,227
-
.
.
.
.
receivable, less
accounts
of
,
the
work
of
of
indicator
is
economy
months
year
r
"
.
Inventories
well-being
Hours
in
eral
DENVER and DALLAS
OMAHA,
24,851,189
marketable securities
and
Notes and
Hours of Work
current,
AS
1954
1
,
Cash
-
week.
MINNEAPOLIS,
SHEETS
BALANCE
CONDENSED
of employment.
types
A
CHICAGO,
•
high
at
were
anticipate continued growth in
the
MISSOURI
KANSAS CITY,
~
Branch Offices
and
finance
government,
these
•
TULSA, OKLAHOMA
expected for the season.
commerce,
levels
•
Headquarters
Marketing
^
than
-government, especially State and
local
OFFICES
Manufacturing employ¬
.economy.
ment
the
of
sectors
GENERAL
in "
increasing strength
was
non-defense
21
(1149)
Financial Chronicle
The Commercial and
...
-
THE
FOR
STATEMENTS
INCOME
CONDENSED
DECEMBER 31,
ENDED
YEAR
year.
1951
1950
$211,081,894
215,316,524
206,426,039
197,139,392
174,345.927
175,785,819
173,811,197
168,192,750
155,153,455
135,481,605
$ 35,296,075
41,505,327
38,233,289
41,985,937
38,864,322
1,093,270
643,454
336,595
123,640
598,337
36,389,345
42,148,781
38,569,884
42,109,577
39,462,659
283,095
297,796
325,592
339,592
353,593
$ 36,106,250
41,850,985
38,244,292
41,769,985
39,109,066
6,651,000
10,574,200
10,211,600
10,695,000
10,595,000
29,455,250
31,276,785
28,032,692
31,074,985
28,514,066
)i
5,746,117.2
5,746,117.2
2,873,058.6
2,611,871.6
2,611,871.6
rn
1954
1952
1953
Unemployment
The
result
of
the
clines of 1953-54
in
Gross
increase
an
operating income
Costs
de¬
business
was
and
expenses
which is por¬
next chart (Ch-art
unemployment,
in
trayed
IV),
as
the
Because there is considerable
variation
sonal
during the
the
Other
which shows unemployment
percent of the labor force.
a
in
percentages
month
basis
years.
Note
sea¬
that
the
(5.5 and 5.0%)
Net
are
1952
while
rate
than for t. e
income
.
year-end
Net
income
$5.12
.
plant, and equipment
Capital expenditures for property,
♦Adjusted
s
(i
4.96*
8,488,185
'oD
Si
7,181,703
.
1.59*
1.24*
43,251,436
37,543,125
41,752,044
$ 44,626,108
CONDENSED
SHELLY
Hi
34,703,048
v;.
rU
31, 1954.
fACTS
3
.
1954
OPERATING
1953
1954
FINANCIAL
the last quarter.
1953
-...
A certain amount of
ment exists in any
unemploy¬
will
there
.
.
.
$211,081,894
Provision for taxes
laid off
income
on
23,606,578
6,651,000
10,574,200
crude oil
$
produced— barrels
average—barrels-
Daily
.
.
Net
215,316,524
$ 25,867,888
.
Depletion and depreciation charged
against income ......
situations
be
under which workers are
operating income
Gross
rapialy cnang-
ing economic system. So long as
we have free enterprise and free
labor,
Net natural and
casinghead
produced—MCF
.
61,081
better
for
look
voluntarily quit
they
periods,
Net income
to
64,273
116,786,334
113,433,228
319,963
310,776
>
gas
.
*
.
.
...
.
.
.
Daily average—MCF
29,455,250
Per share
.
.
5.12
5.44
$:
"
Oil
two
layoffs.
the voluntary quits run some
three
to
As
times
turn
high
as
downward
as
begins
business
as
soon
and jobs are
Capital expenditures for property,
plant, and equipment .•• ['.
.'
to
less
t
"
other
The
the
is
"over
of
"the hiring rate goes
cto
add
turn-
.
$216,654,592
...
41,752,044
•
.
.
.
.
.'
.
•••...«.
Gas
f:
-
■,
..
V
'
of y
times
-
.
.
.
$
■'
,
to* replace ail the"
workers who leave. Nevertheless,
not
try
.
/
.
.
'
*
'
Other deferred
.........
Net oil wells owned
.
Net gas
.
.
.
.
.sions,
This
some
•
constant
turnover of
jobs.
necessarily results in some work.ers
tain
of work, for cer¬
periods of time, even if the
being
.
r
obligations
dividends paid
60
/
r
-.3,724
"■
; :
v
3,522
-
wells owned
.
.
.
y
509
.
.
.
•,
463
Continued
on
page
46
:
-
.:v;
/
8,818,000 /
10,535,000
Net
producing oil and
Net
"■
undeveloped oil and
424,408
gas acreage
:
381,403'
•
.
.
.
»
102,580
166,304
9,768,244
$
.
.
.
9,336,669
,
$
,.
,
acreage
.
.
;
*.
gas
.
.
...
3,585,369
.
Per
share
*
.
distributed1
O '.
.
.
.
...
,
.
1.62*
1.70
$
*
Stock dividends
"V
.-*
.
Crude oil
4
Shares of
common
stock out-~:
standing at year-end
Net
book value per
5,746,117.2'
.
share ."
.
-
.
.*■*.'
44.04 '
$
.
'
•
" "
'
5,081
5,746,117.2
*
"
40.61
4,504
processed in
refineries—barrels
100%
.
,
'
"
'
,
.P "
r
-y
3,454,856
i
^
.
♦Adjusted
.
T
e
lOregoing
to
the 5,746,117.2 shares
financial
contains the certificate of
operating statistics.
The
or
statements
any
offer
or
statements
are
v
.
.
.
'
.v
16,754,647
.
.
16,355,275
' t
t
Gas
processed in
Sales of
.
company
plants—MCF
gasoline
....
.
.
95,697,478
105,912,446
petroleum products—
gallons
,
.
..
...
..
.
1,106,194,188 1,078,891,205
outstanding December 31, 1954.
condensed from the Thirty-Fifth Annual Report to the stockholders, dated March 9, 1955. The report also y
Co., independent accountaiMs and auditors, rhe remarks of the president of the Company, and various
may be had upon application to The Secretary, Skelfy Oil Company, Skelly■ Building; Tulsa 2, Oklahoma.
published above are for general information, and-are not intended for use in connection with any purchase or sale of,
Copies of the report
solicitation of an offer to purchase or
sell, any securities.
I
•
Messrs. Arthur Andersen ft
and condensed facts
1
company
out
Lment for individual workers will
'
*
*
.-
.
.
Number of stockholders
employment level is stable or ris¬
king. If. employment conditions are .'good, the. length of unemploy-.,.
y
.
50
:
67.
'
.
.
*
in deep
"
•
278
,
43
-
.
.
,
\
Cash
aepres-^
hiring is going oh. *
-at'all times, even
388.
'
'42,495,715
$ 44,422,994
business contraction the employer
does
385
275
•
•'
„
in
:
'
.
*
Conversely^
quits.
»
201,828,604
..
.
*
completed
•
Dry
.
liabilities)
current
Funded debt
-
replace
.-
-
■
In
rate;
reserves
less
employment,
up—not only / *
but* to
staff
to
labor
accession
expanding
of
times
side
$ 44,626,108
.
Working capital (current assets*
,
r
less
p
.
,
and equipment,
Property, plant,
fall rapidly as
layoffs increase. . So
the total
separation
rate - often/ remains * high under both conditions.
*
quits
plentiful,
.
31,276,785
Net wells
such as 1952 and early 1953,
years,
1
$
■
*
.
(after all charges
and taxes)
boom
In
jobs.
"
^
23,459,781
.
.
.
.
22,294,402
.
'
often happens in prosperity
or, as
*
W
1.47*
-
ri;
approximately 2.8 million
unemployed, or 4.4% of the labor
in
.
the 5,746,117.2 shades outstanding December
to
with
force
5.40*
9,140,679
1.62:t
$1.70
share
1954
We ended
9,336,669
'
1949 in
the early months of the year, it
was lower throughout the second
year.
$
4.87*
5.44
9,768,244
share
per
Cash dividends per
Note
also
that
unemployment
,
higher than in
half of the
$
.
.
.
dividends paid
Cash
1954
the
was
>
t
A
and
respectively).
income
on
outstanding each
Shares
prosperity
years
of 1948,
1953 (3.4, 2.7 and 2.5%
high
taxes
selected
rates
'1
Vg
V
-
for
Provision
substantially higher for 1949 and
1954
funded debt
other charges on
Interest and
unemployment
certain
for
deductions
less
income,
$
the chart shows
on a month-by-
year,
r
...
,
(
22
(1150)
The Commercial and Financial
vania's
Electronics: World's Most
Promising Revolulion
By DON G. MITCHELL*
It will
Sylvania Electric Products, Inc.
Mitchell, asserting no other industry will exert as great
influence in economic progress as electronics, predicts in
less than a decade value of its output will reach $20 billion.
Lists present and potential uses of industrial and commercial
There
great
as
on
industry
during the next few
whole
Electronics.
as
From
the
as
a
point of
mation
receivables, inventories,
cash, volume variances, payables,
etc., etc.
new
of doing
ways
things, of
new
Sylvania's Data Processing Cen¬
project was announced last
products
which
ter
will
January.
revolutionize
financial
of commerce
and
mation
industry,
Electronics
ter,
billion
A
dustry, count¬
military
broadcasting
By 1960:
will
.
perhaps
.
1964:
$20
billion
.
.
and
.
ics
was
Electrical
an
industry whose shinments
about
$17
are
(1954). Today,
growing share of
a
that
over-all industry.
As far as
future is
concerned, not even
atomic energy overshadows
Elec¬
tronics.
the
not
management
divisional
man¬
the
rapid
consolida¬
of
events,
and
when
management
must base its decisions
upon
events, \ it
is
essential
these
that
all
levels
The
Big Future
—
Industrial
01 jnanagement have com¬
plete and* significant information,
as soon as
possible.
and
Commercial Electronics
The
dominant
tronics
and
today
(2)
of
areas
(1)
are
Elec¬
In
Military Electronics.
Commercial
dustrial Electronics.
and
commerce
(1)
Computers—The "electronic
brains"
and
which
record,
statistical
classify
tion—rapidly
and
(2) Industrial
compute,
informa¬
accurately.
stantial
cient
,
and
various
other
types of production control.
(3) Electronic
automatic and
ment
will
-
On
automatic
machines, safety devices,
process
controls, etc.
(4)
Navigation
cations
—
Air,
and
sea,
Communi¬
and
surface
travel.
Enormous expansion
'blind flying"
equipment.
(5)
of
in
all
in
profit
products,
provide
more
a
improve¬
because
for
means
it
obtain¬
tion in connection with all
phases
of our operations and
markets—
the high costs of which now
vent
accumulation.
Construction
May 1
.
.
Light—"Ampli¬
TV—"phonevision," for example.
1,
gradually attained.
.
.
about
When
in
full
persons.
Mechanics: Leased communica¬
*
tions network
will
area
link the
Cen¬
reporting offices.
turn, four to six facilities will
report to each
vey is now
area
to
tions for
area
determine
Heart
puting
the
of
system,
contracted
A
to
Nothing is more useless, and
frustrating, than information re¬
be
all
best
our
loca¬
entire
sys¬
electronic
which
lease
com¬
have
we
from
Rem¬
ington Rand.
ceived
sur¬
offices.
Univac
a
—
office.
being made of
facilities
too
mation
not
late
which
related
Electronic
to
is
to
use,
or
infor¬
incomplete,
other
or
information.
data
processing is the
Ley to this problem.
The
a
problem
becomes acute
in
large diversified
company, with
manufacturing operations widely
dispersed.
Centralization
and
mechanization of data
processing
becomes necessary — "data
proc-
*An
What, in detail, will the Center
able
to
do
for
us?
We
We
estly don't know.
have
by Mr. Mitchell at the
Conference of
the
American
Management Association, New
York Citv
1 eb. 28, 1955.
y'
how
big a number it can multiply by
another number; that's duck soup
for a computer. The real problem
is
using
there
system
will
is
probably
operating
be gradual
thing to remember is that
Univac, or any other electronic
in
the
final
analysis,
aggregation
of
devices
machines and gadgets. And
of them
tem
as
individually,
a
whole,
the
the
Laboratory;
machine
being
in'fact,
are
you
in
in
encountered
for
unsurmountable
i t h
w
tical
that
the
revolution
a
is
And
You
it
can
about
s
have
end
time.
much
handles
right
available
information
the
in
is
Now
mation
automation.
can
nor
and
none
the sys¬
think.
Syl¬
Perhaps
sky"
proc¬
management or¬
decentralization
on
Will electronics
out?
about
envision
a
computers,
of
you
office
central
"blue
type
Center.
a
top
And
one
look
and
sends
Plant
to
the
the
at
newest
electronic
an
B
executive
to
takes
report
message
change its product
of
busi¬
mix
that
auto¬
absent would be the decentralized
completely au¬
tomatic plant, with probably one
mechanical engineer and a couple
management—the operating levels
nessmen
mation
means
feel
a
of assistants to
things
a
to
seem
with
adjust and tighten
days.
all
The
or
key
need.
going
of
some
Section
the
E9-
I
I
'
Sylvania's
ing
will
ment to
operate
with
faster
tion.
But
least
need
for
will
be
I
know
of
drastically
bility
and
uration
tomation
may
fast
industry
or
be,
in
whether
your
just
it
is
particular
beginning
to
emerge, it is a trend which will
exert
ence
an
on
denying
extremely
industry.
that
great
There
automation
influ¬
is no
as
a
mind.
recall
in
should
say
of
to do that
basic
new
point
point
is:
we
system
cannot do
help
now?
Conclusion
predictions I reported to
you at the outset of my remarks
—Electronics a $15
billion in¬
dustry by 1960—and all of those
amazing
technological develop¬
ments, some of them rather "blue
sky," I admit—are interesting in
themselves. They demonstrate the
rapid
new
emergence
industry.
strate
of
But
a
will
fluence
exert
all
on
of
than any
relatively
they demon¬
something else
trend
a
—
profound
a
industry.
industry I
electronics is giving
in¬
More
think of,
can
new
strength
to man's mind and
hands. Atomic
energy, certainly, will be an enor¬
force in world
progress
is
some
years
mous
but
that
.
.
,
away.
Electronics
is
doing
that
now.
right
NYSE Stock Ticker
a
That
the
on
the
sat¬
human
how
there
readily
may
be,
are
lim¬
manager can and
more
will
management
Exchange
utilizing its nation-wide
stock
and
efficient
make
more
bond
throughout this
ticker
week
'
network i
to
support
the Red Cross
is
drive, it
announced
by
James
Crane
Kel¬
logg,
Vice
III,
Chair¬
-
of
man
the
Board of Gov¬
of
ernors
the
Exchange,
who
ing
is
head¬
the
cam¬
paign
in
New
York
the
brokerage
Notices
C.
J.
community.
Kellogg, III
urg¬
ing the nation-wide financial
in¬
generously to the
Red Cross will be published sev¬
eral times daily on
more
than
2,300 stock and bond tickersi in
378 cities throughout the country.
Mr.
Kellogg also headed the
dustry
to
give
1054 and 1953 drives in New York
City when Stock Exchange firms
surpassed their quotas. Early in
1951 he organized and directed a
mass blood donation by Exchange
and member firm personnel.
The
the
New
1955
The
York
City
;
,
quota of
campaign is $5,730,000.
goal is $85,000,000.
<
national
New S. F. Exch. Member
SAN
the
Calif.
President
FRANCISCO,
Ronald
E.
San
change,
Kaehler,
Stock
Francisco
-
had
—
of
Ex¬
Colis
that
announced
Mitchum
elected
been
to
membership in the Exchange.
Mr. Mitchum is
ner
of
whose
ton,
a
general part¬
Mitchum, Jones & Templeprincipals
have
been
in the securities business in Cali-
,
fornia for. approximately 35 years.
The firm has branches throughout
the
state, with San Francisco of¬
Montgomery Street.
fices at 405
Mr.
fifth
Kaehler
said
this
is
the
membership in the Ex¬
resulting from the 25%
new
change
dividend
clared
on
on
old memberships de-
Dec.
acquired at
a
30, 1954, and
was
price of $4,000.
-
*
>
-,
•;
Elected Trustee
con¬
carry.
that
Aiding Red Gross
The New York Stock
has been
responsi¬
informa'ion
what form,
processing
the
That
this
the
speed of in¬
on
rather
matter
its to the load
I
will
informa¬
eliminate
authority.
points
manage¬
better
won't
but
No
available
and
in
ignored.
The
of
effectively,
more
cept is based not
now.
coming
enable
and
it
formation
au¬
will
decentralized
different only a few months from
Whatever your approach to
levels
I told you of
Data Process¬
plans.
will
vears—but
all
you
simply
that
at
as
Processing
said earlier, when
automatic
now—or
Data
help
management,
more
are
which
simply
will
plants
any
they
others
in
on
some
be
or
happen.
systems
authority and
-
way of thinking,
that
should not happen but
my
only
won't
plant.
is the
entire plant need
automatic,
work
for
to
Does the
be
than
part of a
the situation
any
results
What
Conspicuously
decentralized
To
not
To the contrary, it seems to me
that
automation can be applied
to
so-and-so.
responsibility.
few
every
to
eliminate
can
with
executives, and
messengers bringing them in re¬
ports hot off the Data Processing
et
automation, but I mean the use
of automatic equipment in manu¬
facturing processes.
lot
big
And that
data
the trend and bring back
reverse
of
Unfortunately,
will
centralized management?
If
you
really want to
could
a
another
at
moment.
Is
the way
on
made
you
that data processing is
say
have
ganization?
do
moment
a
look
a
effect
essing, and computers, and auto¬
right form at the
for
war:
let's
handful
look
s
the
Electronics, of
especially television;
and synthetics
is an¬
What
is:
right time.
Let
since
own
and
question for
nicelv
very
have
ten.
in
to
about
in
the
past 10 years, and will
probably double again in the next
about them.
That
is
serious problem
which the
computer
the
new
other; the electrical industry (i.e.,
only electronics but electric
equipment as well) has doubled
anything
one
of
seem
time
of
not
been
haven't had
creation
their
into
chemicals
again.
We
still somewhat skep¬
the
course,
spending so much
shuffling the papers that
time
we
that
say
1954.
for a moment
industries
which
new
come
day
going on
in
labor-savmg devices and
over-all production ef¬
about
the
handling of paperwork in in¬
dustry.
to
other
the
produce
jobs, think
the mathematics.
said
to
demanded
was
If you are
tronic brains to do the arithmetic
Someone
million
51
would net have been met.
elec¬
t
workers
of
was
.necessary
greater
missiles,
0 u
1954
ficiency, the public's needs simply
pause
often
us
won't
approach
a
technologi¬
change from the standpoint
eliminating something all too
of
Fund
number
in
us¬
example, would be just about
and
the
what
problems
guided
been
have
years.
number
without saying that the
many highly secret research and
engineering projects of the Armed
Services
are
greatly dependent
The
could
—about eight million short of the
It goes
computers.
seven
Yet
un¬
TO
employees.
demand
available
production
problems encountered in turning
out airplanes.
upon
member of the
had remained in
every
force
only by having 59 million
workers; the public's needs, its
standard of living, rose that much
.the
about
if
never
as
well
can
why,- when
think
to
you
living would
Without
aircraft companies
The
ing them—and
certainly
them.
cal
which
met
second.
derstand
didn't dis¬
anybody.
place
1954's
to
13
x
The machines actually
Assuming
that
production
techniques did
not
change from 1947 to 1954,
the
was
earlier
which
production
multiply that 13
digits problem in a
able
digits
it
mentioned
I
ago.
job and every member of the
unemployed given a job.
Some recently released figures
of
the
Labor
Department bear
out that point.
In 1947, industry
employed 44 million persons, i.e.,
Ordnance
Naval
to answer
happened to
way
what
his
Navy has its amazing
at
good
part and parcel of
working
bills, doing the work of 200
clerks and saving $750,000 a year.
And
years
even
tric
calcuator
A
see
have been
possible without mechanization—
be
must
un¬
Thursday, March 10, 1954
.
will
ices wnich comprise our standard
of Chicago—because
never
The
is,
too,
What
a steady
steadily increased
their standard of living.
There
is another way of looking at it:
of
Commonwealth
their
IBM system will make out elec¬
So,
Edison
of technological
The increase in goods and serv¬
mountains of sta¬
more
confronted with
are
displaced
30
were
not
tistics, which won't help anybody
do anything.
We at Sylvania are very en¬
thusiastic about Data Processing.
know
changes.
system,
is
machine
the
tains and
cer¬
hopes and
a
great
many
ideas, but our entire concept msy
change next month or next week.
the
problem
properly.
You have the choice of using a
computing system to help your
company, or of avalanching your
entire organization
with moun¬
hon¬
tain
Once
The
solve?
eventually be auto¬
you
to
trend
.
.
to
•
an
address
Electronic
problem
and even then he
may get the wrong answer.
Just how big is the problem
which electronic computers can
portions
by machines 20
They -not only
found
new
jobs, but the very
machines which displaced them
cleri¬
a
is
those
or
in
.
employ about 300
tem
Processing
start
operation, the Center will handle
all of Sylvania's record
process¬
ing and record-keeping, and will
The
Electronics in Business
Communication &
will
partial operation about
1956
full operation
It would take
major
it
.
being
machines?
that
cal worker 540 seconds to do that
The
.
ter with six
fied light" holds
great promise in
not
only entertainment TV but
also communications
Data
operating
ing extensive additional informa¬
In
Amplified
result
Jan.
Controls
semi
primary ob¬
all
pre¬
Television—For
for
the
sum
through more effi¬
processing.
The
system
should
Quality control in manufacturing
processes,
to
making
rapidly than it has been in the
past, we feel that Sylvania's proc¬
essing center will save us a sub¬
and
industry is
one's imagination.
Forgetting the
blue sky"
possibilities, these are
already realities:
of
information available much
In¬
The only limit to
predicting the
potential applications of electron¬
in
addition
jective
Television,
Tomorrow:
ics
does
compiling, transmit¬
ting,
and
processing
operating
data has been increasingly diffi¬
cult and increasingly
costly. To¬
day, when there is less and less
time, unfortunately, between
billion
Electronics is
It
cor¬
operating information. The
problem
phase of the
Electronics industry —
-
supersede
tion of
minor
a
benefit op¬
management.
necessitate
few years ago, Electron¬
a
will
Competitive conditions, as well
steadily broadening markets,
as
steadily upward.
Only
and
agement.
more.
By
that it
that corporate
mean
revenue.
.
corporate
management.
manner
porate
electronics,
$15 billion
Cen¬
instantly
erating management and also
television, radio, commercial
electronics,
be
processing of information in such
in¬
a
ing
the
to
will
for
com¬
Processing"
is
not
a
superimposed check on the oper¬
ating
organizations.
It
is
the
technological
Today:
electronic
network
it
infor¬
"Data
revolution."
$9
installations
production
an
where
divisional
promising
Mitchell
via
summarized
world's most
G.
and
munication
is
certainly "the
Don
Various
throughout the company will feed
phases
many
—
others like it
32,000
second.
one
being the accumulation,
computation, and classification of
a
wide variety of business infor¬
years
but
that
concept
.
happen
the employees displaced by the
to
ex¬
puter can do not only that prob¬
lem
will
the question
example: 2368912941062 times
An electronic com¬
for
essing"
stand¬
striking
many
the
or
employment.
8671240510296.
electronics, and decries fear automation will decrease employ¬
or reduce trend toward decentralization
by manufacturers.
industry will exert
are
in
plants
Again,
when.
and
lies
them
of
putting machines to
is not new.
Its
many
matized.
many
amples of what computers can do.
Take this multiplication problem,
ment
influence
entire
It will do faster
be.
efficiently
more
for
newness
of the
things we now are do¬
ing, but someone must tell it what
and
Mr.
an
No
work
be only as good as we
enable it to
of
concept
statistical
to do
an
other cen¬
good as the
and
operate
any
as
direct. it
who
men
it.
Chairman of the Board,
Center, or
will be only
ter,
Chronicle
data
operating
effective, but
Anton H. Rice, Jr., a partner
Spencer
elected
Trask
a
&
Co.,
has
in[
been
member of the board of
trustees of American Surety Co. of
New
of
York.
He
is
also
a
director
Superior Steel Corp.; Aikerm,
Inc.
(Airwick); Buell Engineering;
Broadway Realty; Stranahan Foil
Co.
Co.
and
Colonial
Life
Insurance
Volume 181
(1151)
Financial Chronicle
Number 5410:..The Commercial and
THE MARKET... AND YOU
U.
By WALLACE STREETE
Liquidation turned urgent Youngstown Sheet, which had
in the stock market this week been
enjoying rather more
and sharp
selling waves re- popularity than the other
sSdygofSthJ™wk market
generally ^ -
steel issues, reacted in propor-
far
was
from
again they were on the and Magma Copper fought off ket action,
This issue, which the
downpull with aboveAutomotive issues followed
sold for around $14 last year average sturdiness.
the overall pattern faithfully,
before
a
new
management - Utilities, although some- although General Motors was
topk over the fir m, had what out of favor with the a bit more spirited than the
all toeether
on
oile dav in the
group
or, losses
acting
points
or more.
dull
and
even
after all the averages posted
new
prominent
on
and their action did
much
as
was
the
surprising
the, rails gave
more
way
merit
V
u-
General
i.
which
,
,.
has -had
r
,
hectic
market
leader
was a
on
Dynamics
January, earnings re
Ports. ^nese tavoraoie state
given
wh/i
lowers solid
life,
recently,
Against
Aga nsi
Trend rail
,
happenstance
fjrst time in
.« right -in .h.
under
middle of the §r?uPs'
the. most
the rail fol-■
general
pressure.
H
oil
f
months for
exsome
the downside
bellwethers showed net
5n
th
f
losses 01 more tnan >
.
u
a
share. For theindustrials alone
that dour day, American
on
"—fa*
"lirljfSS
*rom a completely down ses
sion
for
30
the
correct and its moves for the
most were mmor.
[The necessarily at anytime coincide
expressed m th*
with those
presented
of the Chronicle. They
as
(Special to The Financial Chronicxe)
ANGELES, Calif. —John
Homme. is
Telephone
suf-
thoroughly respectable fered along with the rest and
now
connected
Seventh Street.
vania Railroad and Baltimore
Aircrafts' Descent
also has been
one
& Ohio, apart from the high¬
which er-priced shares that normally
of the better
performing issues
was trimmed back
swing in wider arcs.
recently,
,
somewhat
The oils
what
presented
similar
a some¬
softness,
run¬
sharply at ..times with losses
ning a bit on the extreme
running only a bit less than side. Houston
Oil, which had
those of General Dynamics.
been one of the better gainers
In fact, on one selling drive
on multi-point hops, naturally
no
less than eight of the
was
among
those that fell
prime aircrafts had losses of hardest. The same situation
two
more
or
net for
one
ses¬
applied to Royal Dutch which
couple more nar¬ also backed up rather
rowly escaped being in the
abruptly after recent popu¬
group by slim margins.
larity.
sion.
A
For
the
aircrafts
it
was
a
Amerada
which
was
the
logical case of precautionary
selling in view of talk of re-
wonder-stock of the post-War
negotiation of defense contracts plus the fact that the
Fulbright Senate Committee
had been
n
period until 1952, recently
acting as though it
mailed
going to get back in acposted a new high for
had made clear that the ef¬
nearly three years but instead
fects
of
defense
work
on
of tackling the 1952 top of
stock
market
movements
235, it was caught in this
would be brought under week's
selling and dropped a
scrutiny as part of the study, couple of dozen points under
that Pricfu without
Chagrin Over Senate
other
sections
10,600
American-Marietta
Shareowners
having
seriously threatened it.
Committee
In
to
was
tion. It
of
the
Miscellaneous
Casualties
market, caution was engenNewport News Shipbuildde^ed mostly by an economics ing was definitely among the
professor's recommendation casualties on periods of mar-
1953
1954
$76,714,724
$102,214,344
$120,724,965
2,827,054
3,013,286
3,809,406
5,466,228
1,109,541
1,383,889
1,663,360
2,019,493
1952
1950
1951
$44,100,903
$66,458,313
to the committee that
margin ket weakness; an issue made
trading be abolished if there a logical target by the fact
is
any
resumption of the that its recent peak was about
SALES
spirited advance like that be¬ three
NET
times last year's low.
early Ward Baking was another in¬
January. There was also dividual issue that had good
tween
November
over the many opinions offered to the committee
1
cause
ferrous and non-ferrous alike, cement issues also
soft steam
ran
Operating Figures
For Free
are
Pro Forma
Copy Write, Dept. 10
AMERICAN-MARIETTA
COMPANY
1
General Offices:
American-Marietta
Plants Located
out of
PAINTS
any
524,721
Building, 101 East Ontario Street, Chicago 11, Illinois
Throughout the United States and Canada
and
appeared promiof the others in the nently on the minus side but
division, and Bethlehem and Tor them it was a case of getwere as
DIVIDENDS PAID
for
joining the softer
issues; the directors shaved
that the capital gains tax had the dividend this week
just
little effect on the market, in time for the
selling deluge
with the chances of getting it to
compound the damage,
reduced consequently becompaper issues lost their pop¬
ing less. ;
ularityina rush. Great
Selling targets that stood Northern and Champion Were
out included the metal shares, pet
selling targets. The
as
3,101,629
and
chagrin
Aluminum issues
INCOME
-
METAL
•
CHEMICALS
•
ADHESIVES
POWDERS • BUILDING MATERIALS
•
•
RESINS
HOUSEHOLD
with
Dempsey-Tegeler & Co., 210 West
running
Bendix" Aviation,
are
those of the author only.)
Defnpsey-Tegeler Adds
market
LOS
American
•
do not
leaders.
Wilcox Uii was one sucn la
ground, for the vored issue and
managed
pecting better market action.
five tovsix Nevertheless something like a:
points at a
chp^The neteffect* dozenissues stood out promiwas to
carry the issue_under
nently in selling periods, with
C^c losses running as much as a
ing erratically to a peak of
couple of points in Pennsyl131.
losses
qn
Strong
airong
Whether by
* s&z.'sirizssst c
dynamics, ments had
a
rather
...
Issues
issues
out of the 50
.•
ground despite the fact that or
design, the issues that were
they haven't been enjoying able at least temporarily to
flow of
same day 21 companies, had little in the
industrial and way of speculative excesses to
,brjake when the going was issues. On that
tough.
ki£*pi55?2!iZ3t2£ ?°.y
irigton clamps, to chill senti-
short time. That the company only the high-priced People's baker-Packard, which has
had put it on a $3 dividend GaSymoved out of a fractional held in .a narrow, five-point
basis didn-t serve as much of raTlgp in the group of pivotai range since the mergernf the
a
Somewhat
particularly
the easy side
were
g
Rails Give Ground
highs simultaneously.
Aircrafts
climbed more than_ $40 since institutional investors lately, others in4hesome
«ha.-fcyjJ™g£ffiSTVSS gSftZtSSXi
per¬
fect, what with the market
tired
was able to hang on ble debenture issues back in
grimly in the metal section 1946 prompted similar mar-
moves
and
trigger but the technical
situation
wide
downside.
points^oneoTtte pertods
was
some
its one-day loss of nearly $3 a
share was far more drastic action than the issue has shown
since the first of the converti-
ble Steel
Hoffman Machinery
S.
went in for
suited. Some unfavorable talk
gains right in the midst of the
selling. Atlantic Coast Line
was a similar example in the
hard-hit rail division. Cruci-
ting caught in the ebb tide
after they had already turned
ir regular,
dawdling around
their peak prices.
23
PRODUCTS
24
The Commercial and Financial Chronicle
(1152)
1952
A Look Ahead in the
1953.No
and
to
Electronic Tube
Industry
a
to
Westinghouse Electric Corporation
last year's over-production, the out¬
industry in 1955 is bright, as there
is now a keen awareness of the nature of the flow of the prod¬
ucts through various channels to the consuming public.
Says
emergence of color TV is one of the industry's big problems.
-
.
the
1954
dustry
sons:
(2)
there
„
is
ment of
hard
selling.
1
the
b 1
could
e m
The-
"•
result
was
better
with
resultant
Are all our communi-.
city is at
the complete
receiv-
than
information
.
sales-
a
Transistoi
and color
s
age
84.
was
ministrative affairs of the Baptist Church and of New York
and
Colgate Universities. He was a member of banking and accounting
> societies and had been a member of the New York bar since 1904:
Born in Kingston, N. J.,
the son of the Rev. Orrin Bishop and
Judd, he studied accounting at the N. Y. U. School of
Commerce. Mr. Judd graduated in 1902 with the first class. He
; was President of the Nassau Audit Company from 1904 to 1910.
Susanna
/
.
Starting with the Knickerbocker Trust Company, he later was
the Columbia Trust and Irving Trust Companies through
<
jf with
we
*/;
ing tube and picture tube sales
"All of us at times have been
at
a
very
satisfactory rate.
In irritated by the many reports we
particular,
the
ever-increasing must file and the forms we must
renewal
market
will
provide a complete for. some agency of the
stabilizing influence.
government. But information that
become
serious.
-
approximately
at
>
level
1954
How
the following:
shortage?. If office space
a premium, how
a
one
prominent Protestant layman,
banker and
a
is it in other cities?'
•
; - mergers.
Mr. Judd attained the position of head of the personal
'
"The simple fact is that we ' trust, division of. Irving Trust. Joining the Kings County Savings
cannot competently answer many
Bank, he served as Executive Vice-President until 1953.
* •*
of ; these fundamental questions. ~ * v. R0r 50 years, he was a member of the board of trustees of the
We need far more accurate and T Baptist Education Society of the State of New York. He was treas-
con-
for black
in 1955 will
white television
and
cqntin'ie
before
inventory
r o
p
for
selling
sales
The
of
various
the
public.
' >
prospect
suming
;
recognizee d,
need
there
flow
the
we
ties over-built?/ If not, where is
in
all
through
product
His
sound
vacancies are there? Where
they?
are
of
the
reach
to
these matters,
on
questions as
Judd,
Saturday, March 5, in his home, 275 Clinton Avenue, Brooklyn.
house¬
of
R.
husband of the late Bertha Grimmell, died of a heart attack
Mr. Judd, in addition to his banking career, was active in ad¬
effort
an
many
Today there is
awareness
of 800,000 in
rate
need reliable information on such
curtail-
sharp
a
and
units
housing
number
the
conclusions
,
levels of distribution to
the/industry
efforts
"In
buying, which resulted in
keen
a
Fortunately,'
:rea
and
at a
of
Orrin
forever
can
JUDD
R.
Banker, Lawyer and Noted Protestant Layman
reasonable
seem
we
ORRIN
holds formed.
° r
heavy inventories.
sub-
no
'
.
production
ti tute for
the
,
not
that
building
excess
industry was suffering from over-
in-
tube
learned two valuable les¬
(1) overproduction can be
dangerous;
s
.
electronic
does
assume
annually
Mr. Orth predicts, despite
-
new
continue
look for the electronic tube
In
a
it
But
Vice-President, Electronic Tube Division
*
is
year
In iHrmnruutt
private housing
the rate of 1,424,000 a
safe and sound margin.
at
Starts
By R. T. ORTII
~
com¬
600,000
the rate of
at
and
year
Thursday, March 10, 1954
-.
that
say
households
J
is
one
the spread at
present between the formation of
petent
.
now
possess.
1
,
_
of the Northern Baptist Convention from
urer
served
:
as
1926 to
1936 and
trustee and treasurer of the American Seamen's Friend
a
Society,
Mr. Judd
1946.
its
;
Hd
was
trustee
a
of
Colgate
University from
1923
to
member of the Council of N. Y. U. and for 13 years
was a
*_
;. •
.
'
•
•'
One of the founders of the New York State Society of Public
Secretary.
-
Hows from these reports has often y
Accountants,
television
he was also a member of the American Institute of
been helpful to business
and i. Banking. Mr; Judd was a former Vice-President of the New York
banking. In a complex economic > Corporate Fiduciaries Corporation.
^
* '
'
V
tube industry in 1955. Trans stors society, the careful evaluation of. ;
the
end
of.
In 1934, he received a meritorious service award from N. Y. U.
will begin to come into general economic data is essential to in- * 1
1954 than was
He was a member of Anglo Saxon Lodge F & AM #137, and
*
also a 32nd degree Mason, Ancient Accepted Scottish Rite, Valley
originally anticipated early in the use in 1955, but they are expected telligent decisions.
first quarter of the year.
of Brooklyn.
to complement rather than reAs an aside, I might mention
•
'
-'
: *
Nevertheless, sales in the tube place- receiving tubes in enter- incidentally that in discussing this
r-Surviving are a son, former State Solicitor General Orrin G.
record
for
industry
Kichard
additional
two
are
s
at
with
reckoned
T. Orth
factors, to
in
the
be
electronic
.
,
'
•
app
t
i
il
A
i
_
4^11 i
i
-
/i
c*
_
,
.
.
industry for 1954 will show
for
crease
the
from
of
something
figures for
receiving
amount
000,000
1953.
in
tubes
10%
under
1954
The
Sales
will
if
oily
for
for the
ness
leaders
past
year
1955
be
dustry statistics.
learned
in
tube
alreldv
models
and
in America pvptv
every
mist
day,
every
as
in
oped
the
in¬
tubes
order
at
lu,
to
low
a
ai" a
produce
cost
trend
has
ward
Urges Caution
been
erated
the
in
long-term up¬
be accel¬
decade.
next
The
a
of
cause
to
new
determination
pZ/J
tinued
growth
of
Mortgage
and
people
Confer¬
"There
comparisons
they
City,
the
Homer
'
Livingston,
President
the
President
the
on
was
was
$19
$20 billion.
retired
American
billion.
debt
the
tional Bank of
to about 37%
sounded
family
a
In
warning
re¬
garding what
is
1954,
taxes
approximately
1.4%;
to
make
and
more
im-
us
more
members
of
were
Charles
Fred
W.
records of achievement.
?
To illus-;
trate, there is-a *serious .question
to
of-
cost
and
-
.V
1955-56
financing
retire
Mr. Reilly struction.
The Pacific
the*.Execu-
tric
SAN FRANCISCO, Lalif.
Gas
proper-
for
the
expected
to
Following the
the
company
$38,000,000
in
& Electric Co.
service s to
^
a
large
part
of
northern
and
having
-
estimated population of
an
Company of Los- Aiv- over-5,800^000.
Coombs
costs
principal
offices
in
San
Francisco, furnishes gas and elec¬
~
New Coombs Branch
y?.
sale
with
•
«•
utility
are
$270,000,000.
to
the
additions
short-term bank loans obtained
for temporary financing of con-
...
-
company's
proposes
of
toward
Construction
current
Vice-Presi-
.
redeemable
are
proceeds
applied
period
dents; David U. Page, SecretaryTreasurer; and J. Robert Laidlaw,
tive4Committee.
bonds
net
be
the
ties.
cor-
Kershaw
J.
Nuppnau,
,
new
The
term,
the
at
on its
indicated
prices scaled from 104.49 until
will
committee
executive
poration's
of being compromised to expediency and to the.desire for new^i
of the Federal debt,
personal income after
rose
tends
be broken, or we are not satisfied:
Sound principles are. in danger
homes has soared to an
estimated $75 billion and is equal
Chicago,
and
and
economic growth into a shorter Assistant Treasurer.
period. Records must -constantly3 .will be Chairman of
one-to-four
on
insepa-
opportunity
patient to crowd
1945,
Today,
always
ficers
issue
the
the
for
1986.
his
as
100.938
Nov. 30, 1955 to 100 after Nov. 30,
the
at
of
Elected
at
who
sixth
Joseph F. Keiuy
The
Low-
enfels
of
coupon.
Ber-
tram1 R.
A prosperous, expanding
economy
one-
In
from
is
for
four
s
con¬
not, in view of the histori¬
growth.
For
d
bid
suc-
eco¬
record, clearly point out that
rable
in
concern
boom.
e
end
responsibility
for
family homes at the end
1929
mortgage
Na¬
some
housing
did
cal
ex¬
analysis,
mortgage debt
it
of
First
causing
are
I
statistical
deserve
careful
•of
and
which
present
to-four
Associa¬
tion,
ceptionally
example,
of
other
are
e
c
bought
competitive sale March 2
the
years,
had
grouP
Gov-
past
maturity. This
quickly
oversub¬
to
scribed and the books closed. The
Exchange.
economy.
housing boom.
ence, conducted by the American
Bankers Association in New York
J.
the
of
products;
the
mately 3.30%
offering
was
Chair-
man
^1
"However, I should be remiss if
and
Mann,
.
Board
indus¬
steadily to improve their
welfare, assure the
pub-
& Electric Co. at 101.488% and
accrued interest, to yield approxi-
J
the
the
a group
offered
Y, due Dec. 1, 1987, of Pacific Gas
by John
and
of
which
announce-
develop
nomic
regarding
concern
for
expenditures
research
3
ment
schools,
for
March
on
American Stock Exchange Clear- licly $50,000,000 of 3%% first and
ing Corporation, according to an refunding mortgage bonds, series
Exchange
vast
the
care¬
the
of
mass-produce
compari¬
cf growth of savings and construction should be
Savings
of
ernor'
people
our
Blyth & Co., Inc. headed
been
a
of
trial
Livingston tells Savings and Mortgage Conference
address before the Annual
an
Presidency
has
the
Mortgage Credit
fully analyzed, since there is
In
the
my
even
may
to
Reilly
Reilly
needs
of the American Bankers Association that statistical
the present
trend
It is
Pacific Gas Bonds
Clearing
F;
long-term
upward.
Blyth Group Sells
hospitals, utilities, and highways;
On
sons
the last
over
century, it is apparent that
despite occasional periods of eco-
conviction that this
Homer J.
elected
?n" nomic decline, the
sumption possible.
.
'
Joseph
it had
half
Will
Reilly Pres. of
ASE Stock
My prnnoecono¬
made the suggestion
look back
we
Jos.
day.
but I thought
quip,
"As
will
vvwicii
n
' '
.
an
interesting possibilities.
these
which
«»«•
friend
a
do
L™"iaCLU"?g. !?hn.'Que.S an.d
equipment must yet be devel¬
A year ago the
ABA Head
since
^hfured Spates
of
.
intro¬
are
improvements
en
develooed
developed
aireaay
.
busi¬
of
mindful
the^ousihTshuation
Government> the letter carrier,.
stops at Poetically every house
Am<n.:rn
Hav.
Mv
ducing
bright
that
reason
have
to
is
industry's big
The
year
have
nave
working
percentage
drop
from
$250,000,000 to $225,000,000.
Judd, and four grandchildren..
s"fgefted ,that we ought to be
color televi-
emXee
gineer
gmeers
similar
outlook
the
economist
an
television
over
$300,000,000. Picture
tubes.in the same period show a
The
of
one
^lack of information,
-
C^TIx^wiifnot'V^V'noW
approximately $275,^
compared with the 1953
as
*
emergence of
is
sion
to
level of
devices
tainment
de¬
a
central
California
At Dec: 31, 1954
currently
called
thiel
"present
h
u
o
s
boom,"
he
-i
n
called
tention
g-
van'd
H•mejr
J. Livingston-
taxes
atr.
to
the
ivhen% OUrt ^^rSOtial Ihbbhi#
low
responsibilities
of
was
at:•
an
%
exceptionally
^
level, has such debt been
_
high
in
relation
to
bankers in avoiding unsound and
Whereas
unwarranted
this
so
income,
starts in January,
Regarding
mortgage lending.
the
situation,
Mr.
Livingston stated
we
follows:
as
ernment
vember
.
Since the end of World War
II,
have exoerienrpfi a nhpnnmpexperienced a phenome
starts
37%
of
the
housing
1954, were govunderwritten, by No-
the
number
underwritten
ernment
was
over
of
by
housing
the
gov-
terms..
^ea<Iy. ,Iiberal{zatidh
t)ownpayments
of
growth in construction; and
only nine years from 1946 to
1954, inclusive, we have had the
remarkable
and
a
total
of
half million
bavings
postwar
during
almost
nine
housing starts.
the
years reached
war
and
highs,
doubling, for example, in the six
years between 1940 and 1946. Tonew
"During 1954, there was also a
sharp increase in VA guaranteed
mortgages. The number of housing units financed in this
doubled.
In
January, 1955, the
seasonally adjusted annual rate
of new private housing starts was
1,424,000, which is an exceptionally high rate. However, house-
savlnp are three
estimated at $75 hold formation is
almost
billion,
1940
figure.
times
the
manner
to
be
year,
now estimated
600,000
a
approximately
which is below the
rates for
^
financing of some
subdivisions
without adequate provision for
ievels
•
eliminated.
Maturities
grow longer and longer.
nal
in
^
Prosperity on that basis may-not-be a
bargain.
The
development and
smaller and smaller and are-often
entirely
schools and utilities is also in the
60%.
customers.'
Investors
W S-
^.Tt Grass operating - revenues 'inf PROVIDENCE, R. I.—Investors
creased from $237,437,291 in 1956
Planning
Corporation
of; New to $386,244,192 in 1954. For the
England, Inc., has opened a branch same two years, net income went
office at 171 Westminster Street, from $37,846,019 to $63,039,149.
under the direction of T.J.Carroll.
Giving effect to the current is-
-gro
.
.
....
..
.
...
,
.-1^
•
sue
.
ers
the number of home own-
is'also
the largest in our his-
lonS run unwise and shortsighted
despite the attraction of immediate Profits. Competent and able
leaders in the field of mortgage
tory.
financing
and
the
to
repayment of the
short-term bank loans, capitaliza-
tion will consist of $818,443,000 in
long-term debt; 12,882,565 shares
discharging the important respon-
recognize that sound
growth and sound financing are
the onlv ways of lasting achievement. We run a serious economic
risk when we compromise long-
established sound principles.
"While the
uals
have
new
fundamentals
nomic
growth
ec0nomic
high
and
for
continued
ings
social
a
eco-
par
value preferred stock
in seven series; and 16,255,811
In shares of common stock,
system.
with
of $25
stable
the
sav-
East-West Mutual In v.
of
major role
East-West
assuring that sound principles
engaging in
and
banking
in
for
and
sibilities connected
be
savings of individreached
We have in these facts the
grows
to
mortgage
you
have
followed
new
achievement."
a
as
aspects
the
nation
levels of economic
Mutual
a
Investors
is
securities business
from offices at 688 Eighth Ave.,
New York City. Pedro P. Semsem
is a principal of the firm.
Volume 181
Number 5410... The Commercial and Financial Chronicle
(1153)
•.■.V.yMjXv/.- .V.V.v'v.V.'
'
.
. .
f. .;.;.i>^.a.»V.,.V>WWAW.''
m
A
M
y'y/%
A
'■A
'V: M
:?!P
1u
It takes two kinds of
...to
keep them flying!
It takes tremendous
power to
unfailing electric
the
POWER
complex
mass
power, too
.
fly faster than the speed of sound. It takes
.
.
racing with the speed of light to operate
of electronic instruments and control devices packed
within the sleek skin of modern
It's this vital kind of
power
military aircraft.
that is provided by Federal airborne direct-
current
power
Federal
Telephone and Radio Company, division of IT&T
the many
supplies
.
.
.
rugged, dependable rectifier units made by
IT&T important contributions
relied upon
to aircraft
by major aircraft manufacturers.
...
another of
efficiency and safety
INTERNATIONAL TELEPHONE
AND
TELEGRAPH
67 Broad St., New York 4, N. Y.
CORPORATION
25
The Commercial and Financial Chronicle
2C
die
By FRANK M.
to
FOLSOM*
and
to
ence
Like snowflakes
pioneered this fascinating art and
too, the tiny electron
billions
*nd
li'.ilt
st
science.
billions
—
of4 them
Yet
have
—
this
be little
the
up
expansion
appears
Today
try.
this
in¬
indus¬
new
is six
times larger
dustry
than it
the
the
of
scene
America,
most
beneficial
vast
I ecame
..xx
ality.
Electronics
and statesmen
will do honor to our great Phila¬
delphian.
thors,
Frank M- Fo,som
rc.it of color
television, the long
whose
sjid growing list of new electronic
roducts and services includes in¬
aids
TV,
theatre
television,
ixdar, new types of communica¬
lieve
ters and transistors. The electron¬
pansion that
address
may
by
an
ex¬
be regarded
Mr.
Folsom
at
health, safety
routine
of
his
Franklin
is
ample of
a man
as
the
Citizenship
Awards
Luncheon,
Chapter, Sons of the Amer¬
Revolution, Philadelphia, Pa., Feb,
work
1 j.iiadelphia
in
effect
and
—
become
Benjamin
perhaps the best
ex¬
possessed of such
qualities.
Yet, at the same time,
he had the desire and ability to
with
work
and
for
mortals; guiding
couraging them.
Although
forerunner
and
of electronics.
his
them
fellow
and
en¬
loved
was
and
more
more
of his genius and his understand¬
ing of
beings.
the
problems
Franklin's
in
onstrated
and
been
the
dem¬
brought into being the
wonders of radio,
vision
lin
held
man's
rapid progress that true
makes, occasions my
regretting sometimes that I was
impossible
to imagine the height to which
may
be carried, in a thousand
years,
the power of man over
matter.
We may perhaps learn
to deprive large masses of their
gravity, and give them absolute
levity, for the sake of easy trans¬
port.
Agriculture may diminish
its labor and double its produce;
all diseases may by sure means
be prevented or cured, not ex¬
cepting even that of old age, and
our
lives lengthened at pleasure
even
beyond
the
antediluvian
MANUFACTURERS OF
RELIABLE ELECTRICAL AND
ELECTRONIC COMPONENTS
Sprague manufactures
paper,
film
a
diversified line of
electrolytic, mica, ceramic, and plastic
capacitors for
use
in the electronic, elec¬
standard.
trical, and automotive industries. Sprague also
manufactures printed circuits, radar
that
pulse-form¬
resistors, and power-type wirewound
sistors. It is the
Ferroxcube
Corporation of America,
a
re¬
most
one
of the
has
people
ment of new
are
years
be
to
cease
been
And
ago.
the
progress
Thousands
of
cargoes
and
now
of true
people,
are
and
employed in the develop¬
of
means
made
news
and related apparatus.
tion
it
and
cured.
or
of
and
at
ther
NORTH
ADAMS
•
MASSACHUSETTS
largest
au¬
just
he
In
Franklin
the
more
immortal
even
of his
action contributed
own
mightily in building
His
in
hiss ad¬
than this
utterance, the positive-
achievements
nation.
our
had
greatness
fields; his wisdom, pa¬
tolerance, his courage
understanding are among the
many
tience and
and
true
of our American heri¬
gems
tage.
There
will
no
question, my
Benjamin Franklin
well
be
250th
is
that
friends,
remembered
anniversary
January. All
of
the
on
his
of
birth
should
us
to that.
In this age, not
only the print¬
ing press will do him honor in
picture and story, but there will
be
radio
his
great contributions to Ameri¬
and
television
to
extol
life.
can
It
to
seems
the
lessons
that
me
to
be
all
of
learned
Franklin, the
one that
most benefit for people
of
from
holds the
in nearly
walk of life is his dedica¬
every
to
improvement.
Richard
Poor
As he had
it:
put
"We
may
ourselves."
Times
better,
if
we
Television Chains
on
Appeals in Washington sets aside ruling of Federal
Commission
limiting the ownership of
television stations.
Feb. 24, the
on
than five standard tele¬
more
stations
could
be
owned,
single
individual or corporation. Judges
Wilbur K. Miller, E. Barrett Prettyman and David L. Bazelton, of
the Court, held unanimously that
operated
the
or
controlled by
Commission
ity to fix
tion
had
a
author¬
no
of this
rule, which the Court
of Appeals held invalid reads:
"The Commission, however, will
in
event consider that there
any
would be such
concentration of
a
control
contrary to the public in¬
terest, convenience or necessity
for any party or any of its stock¬
holders, officers or directors to
have
in,
direct
a
indirect interest
or
be stockholders, officers or
directors of, more than five tele¬
or
arbitrary numerical
limit "as the boundary of public
vision broadcast stations."
interest."
in its
an
Although the court's decision
specifically with television,
it is generally believed that it also
would apply to the Commission's
restriction on the ownership of
dealt
radio stations.
The court,
in its opinion stated
that though in some circumstances
the ownership of more than five
prohibited by the rule,
not be in the public in¬
common ownership under
stations,
would
terest,
as
circumstances
some
number
of
a
greater
might be compatible with
the public interest.
The
Federal
Regarding this rule, the Court
opinion stated:
"Thus
into
lawful
use
of
an
must get
available
fre¬
a
The
Storer Broadcasting Com¬
application for an additional
TV station in Miami, Fla., was
rejected without a hearing on the
ground that the company was li¬
censed, when the application was
filed iii August, 1953, to operate
pany
na¬
of
standard
stations
and
five FM
lic interest in
facts
Atlanta, Detroit, Mi¬
ami, Toledo, Ohio, and Wheeling,
W.-Va., and three television sta¬
tions in Atlanta, Detroit and To¬
ledo.
The.
under the Commission's
rejected
"multiple
o.wnership" regulation.
The
by
\
'J
application
was
sec¬
freezes
can
never
respect in which
a
and
circumstances may
differ widely from case to case.
"It has decided
that there
.
be
an
.
.
instance in which
public
interest,, convenience and
necessity would be
served
by
granting an additional license to
one
who
is
already
licensed for
five television stations. The power
so
to decide has not been com¬
mitted to the Commission."
Joins Daniel D. Weston
*
(Special to The Financial Chronicle)
BEVERLY
HILLS, Calif.—
Henry Lee, Alfred M. Levy and
Thomas C. McKinney * are now
with Daniel D. Weston &
South
and
Beverly
Levy
Drive.
Mr.
Co., 140
Mr.
Lee
previously
were
with Samuel B. Franklin & Co.
Walter Pforzheimer
Walter
radio
in
Commission
a
the
Communications
hearing before
the application is rejected.
quency
the
binding rule a limitation
Upon its consideration of the pub¬
Commission law requires that any
citizen seeking a license for the
have
,
stated
But
these
has
n
Thus
bestir
from the clouds With that which
*
overthrow
nation must begin by
subduing the freeness of speech;
a thing terrible to public traitors."
readership
newspaper
Washington
vision
Wondrous
produced
would
a
make
Communications Commission that
not
of
been
Whoever
liberty of
built
as
Federal Court of Appeals set aside
rule set up by the Federal
kite, equipped-with a ,key
to the. string, and his
success
in identifying the electricity which he brought down
already
or
only bounds it ought to know.
tion
of
right of
by it he does
control the right of
and this
is the only
check it ought to suffer and the
the
attached
.
the
commentator
•
mous
*
hurt
the
as
Communications
pro¬
speed
the
television
and
held
any
Court of
us, from youth,
have-known about Franklin's fa¬
SPRAGUE ELECTRIC COIRPRIIY
of
Had
thought,
another;
Federal Court Vetoes Curb
five
all
have
largest
diseases
from
man.
time, he probably
the
labor
communications
information
his
generation,
trans¬
its
to
ideas.
radio
his
possible to spread ideas,
to' nation
light.
Nearly
many
his
of
in
diences
The span of life has been
lengthened
prevented
components, dielectric materials,
burdens
multiplied
greatly
duction.
field.
its
the
was
still amazed at
are
with
would
through the air with
amazing
ease;
agriculture
has
diminished
that
ideas
service
greatest
facilities
ported
of the largest and
belief
of
the hundreds of letters and papers
he wrote to inspire and inform
one
science.
complete Research and Development lab¬
Some 175
would
to
improvement,
mail
leading
oratories in the electronic
components
O that moral science
.
during the
years that have passed since his
letter to Priestly, great, indeed,
military electronics.
Sprague maintains
.
Thus did Franklin speak, nearly
200
producer of magnetic ceramic materials for tele¬
vision and
.
fair way of
another, and that
human
beings would at length
learn what they now improperly
call humanity,"
high temperature magnet wire, which has wide
owner
a
men
wolves
only producer of ceramic-coated
military applications. It is half
in
were
ing networks, radio interference suppression
filters, borocarbon resistors, wirewound pre¬
cision
is
It
soon.
the
to
Many people
many
now
too
not
is
far
every man as
next
electronics.
communication
"The
born
and
tele¬
of
ad¬
such
no
which
speech;
see
letter he wrote to John
science
pres¬
During most of his life, Frank¬
Priestly
in England in
1780, about ten
years before his death. He wrote:
a
hurdles
ent-day
of his writ¬
I would like to quote from
ings.
technical
human
of
awareness
of science has
power
\i
of
the
overcome
existed
Franklin
discover
to
come
is relatively easy, therefore,
-identify Benjamin Franklin,
his mind and his methods, with
the spirit of scientific curiosity
and
experimentation which has
It
others
appreciated while he lived,
succeeding generation has
each
Benjamin Franklin in the mid-
JU 1955.
accomplishments
in history.
milestones
enormous
electricity
individual
an
capacities extend so far
his contemporaries that
and public
techniques can re¬
Its
men
and
find
to
rare
beyond
drudg¬
savings
in time, money and materials.
At this point, I am impelled by
historic facts, as well as senti¬
mental reasons, to refresh mem¬
ories with a tribute to a great
Philadelphian
for
his
inspired
ery
tions apparatus, electronic compu¬
ics industry is undergoing
to
welfare.
dustrial
educators
It is
control, clerical operations,
transportation. It offers new
and
ica
in
uct
Products
With the ad-
Crod
serve
to
organizations in 12 coun¬
tries will participate.
Many of
the world's leading scientists, au¬
stirred
freedom
be
his
thing as
wisdom; and no such thing as
public liberty without freedom of
ness
and
challenging as when
the imaginations of
early scientists in the field.
than 200
many
I Electronic
*An
now
anniver¬
stated
once
can
vocacy.
they
fields. Besides being per¬
haps the greatest boon to com¬
munications, it promises new ef¬
ficiency in manufacturing, prod¬
New
i
can
experiments,
his
theories
of electricity as an
a
"Without
there
the nature
Franklin on
Jan.
17,
1956.
Because of the
strong Franklin tradition, more
through application of this mod¬
ern science, its ingenious devices
and techniques.
a
commercial
and
an
im¬
electrical
as
fresh
plans
of the birth of
sary
changes
te levision first
the
peers
"electrical fluid" existing in posi¬
tive and negative states are as
world-wide
of the 250th
celebration
of
for
underway
are
extensive
development
and
first
on
I have been informed that
as
electronics, is well on its way to
when
T.C47,
world.
the
pioneering
in
was
of
tries
became
in
than two centuries after his
more
Newfoundland.
in
text
introducing probably for
the first time in electricity, usage
of such words as armature, bat¬
tery brush, charge, charging, con¬
dense, conductor, discharge, elec¬
trical shock,
electricity, electri¬
cian
and
electrify.
Even now,
Marconi's
antenna
that
picked up the first transatlantic
signal was held aloft by a kite
economic structure of many coun¬
tronics
Electricity,"
field,
deed,
In the years
elec¬
products can trace their
in
used
ahead, increasing use
of electronic products and serv¬
ices will reshape the social and
new
in these words:
on
experiments with antennas
wireless telegraphy.
In¬
early
to
than the beginning.
more
few
He
portant
lineage to Franklin's methods and
discoveries. Even his famous kite
had
its direct
successor
in the
high tribute to the men who have
icecaps, so
has
vocacy
genius of this first great Ameri¬
can
scientist. All of these mod¬
pile up to help
polar
great
Franklin
ment.
as
America, for his under¬
standing of electricity.
He was
regarded as the foremost elec¬
trician of that period.
His book,
"Experiments
and
Observations
ern-day
Benjamin
champion of people's
rights, advocate of free speech,
independence and self - govern¬
tion, industrial TV and radar —
to name only a few—are surely
among
the descendants of the
p&iteer work of Benjamin Franklin in the field of elec¬
tricity, but to his prognostications and faith in scientific and
social progress. Points to Franklin's belief that communication
of ideas was man's greatest service to man.
of the widest
one
well
and
cations
in America and
book circulations in Europe.
In his own day, Franklin was
celebiated throughout Europe, as
and
Radio
terms.
microwave communi¬
electronic computa¬
television,
th« iottg and growing list of new elec¬
products and services, Mr. Folsom refers not only to
(be
fzrm the
itself
express
are
electri¬
of sci¬
in clear
of
ability
the
unmistakable
la calling attention to
tronic
contributions
to
condensing and storing static. We
less acquainted with Frank¬
lin's
many
other
experiments
with
electricity.
made
both
Century
18th
knowledge
our
city
Corporation of America
President, Radio
the
of
Invaluable
Benjamin Franklin and Electronics
\:r
Thursday, March 10, 1954
...
(1154)
Pforzheimer
away
March 6
after
a
heimer,
broker
the
who
for
50
founders
Curb
is
long
Market
now
change.
the
at
the
illness.
had
the
Pforz*
stock
a
was
one
New
Association,
American
of 71
Mr.
been
years,
of
passed
age
of
York
which
Stock
Ex¬
Volume 181
Number 5410
...
The Commercial and Financial Chronicle
(1155)
27
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p
From General Electric's ANNUAL
REPORT\
II
out now:
Peacetime
closer.
actors
use
of the
atom is
Small, low-powered
can now
be
General
•
•
x
IN
IN
ATOMIC ENERGY
ELECTRONICS • IN
-^y^y.y.v.v.y.ya-/.'.v.va v.".
IN
•
DEFENSE
•
AUTOMATION •
IN
IN
KM HI ""•air
'
TRAINING
re¬
supplied by
Electric, subject to
Energy Com¬
regulations, for educa¬
applicable Atomic
MEN
mission
tional, industrial
and medical
For this and
other news of
atomic
energy, see
Page 11 of
the Annual
SHARE OWNERSHIP
use.
v-*.v.*.v.\ v.
Report.
General
Electric engineers
designed and
built a more
Computers,
high-efficiency jet
entirely new
principles, resulting
powerful,
engine on an
set of
new
jet-en¬
gine progress. This news
,and news of other defense
products on Page 16 of the
in
outstanding 1954
automation
productivity
ISP
pattern
General Electric is
U
u
a
q
;
mating materials
for
Annual Report.
1954
set
even
der"
auto-
handling
large "special
breaking
new
ground
computer applications.
Annual
Share
Mass
production
leadership
be
of transistors
Report, Pages
a
new
in 1954 and
a
\
Divi-
early 1955
are em¬
reasons
a
Management
Research and Development In¬
stitute, plus broadening other
advanced
development described
he Annual Report, Pages 7 to 10.
anced
•>-,'
about
ownership-see Pages 2 and 21.
General Electric thinks so, and
>
x
more news
\\1
has established
mass-producing transistors.
is one of the outstanding ex)les of progress in research and
'
owners
discussion of two big
behind this increase—and for
share
lilt
,
'
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ment programs.
See the Annual
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of
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pects., .write Dept. 111-J1,
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professional develop¬
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GENERAL
:If:
high in 1954. And 40,000 who be¬
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is now applying new techniques
8-9.
reach
owners
The number of General Electric
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;ral
in
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C# 0^ f %$ Ju till
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tions, including the Annual
u
23
The Commercial and Financial Chronicle
(1156)
should
This
Out Current Population Trends
be
goods.
over
Company
The year just
next two decades national popu¬
accompanied by growing
and
young
of
been
at
of
censuses
tion have been taken in this
coun¬
try since 1790, it was not until the
after World War I that busi¬
years
and gov¬
ness
be¬
ernment
make
to
gan
intensive
use
population
of
the
in
data
of
conduct
their
gener¬
i
ally,
an
sight
in
will
basic
come
population there
marked change in our
a
our
the
In
of
census
1950,
but
males,
This margin is ex¬
pected to grow to 3% by 1975.
However, because males outnum¬
ber females at birth, they also ex¬
Spiegelman
to
understanding
an
probable changes in our
economy and society. In this brief
survey
of
national
population
trends, only the short period since
1920 will be reviewed to provide
perspective for the future; this is
simply for convenience and not
because 1920 marks any signifi¬
number
in
ceed
the
at
younger
particularly under 20 years.
On the other hand, the greater
mortality of males and the casual¬
ties of war produce a rapidly ris¬
ages,
ing
of females at ages over
Especially noteworthy
figures for ages 65 and
excess
45
years.
the
are
at this stage, the number of
females
exceeded
males
by
as
point in the study of popula¬
tion.
The projections to be pre¬
sented will not go beyond 1975, this
over;
being the latest year for which the
exnected
Bureau of the Census has released
1975.
cant
should
It
estimates.
recent
to
to revision in
developments.
Time
light
the
of
not permit a
will
discus¬
sion of the effect of our popula¬
tion trends upon specific facets of
our
economy.
It
takes
some
imagination to see how the market
for a particular good or service is
affected by the shifts in its con¬
suming public. This I leave to you.
Age and Sex Distribution
Our population today, including
the armed forces overseas, totals
164,000,000.
1920
and
creased
by
In
the
between
decades
45%
when
This
less than
1,000 population.
economic
recovery
brought a rise to the pre-depression level. Leaving out the varia¬
tions in the marriage rate intro¬
total of
1975,
reach
a
cording to the Bureau of Census.
the
In
almost
scene,
have
people
we
60,000,000 young
years of age and about
number at ages 20 to 44
Somewhat more than half
20
under
the
current
same
years.
that
number
in
are
their
—
about
33,000,000—
of late matur¬
years
ity, ages 45 to 64, and in the older
years of life, ages 65 and
over,
there
not
are
far from
14,000,000
Our growth by 1975, ac¬
persons.
cording
to
the
within
to 19 and at ages 65 and over will
by about 70%.
On the other
to
foresee
rates will
correspond
economic
to
current
However,
the general trend in the rate may
be
years
falls.
the
at
few
next
the proportion of
as
lation
the
for
downward
popu¬
marriageable
ages
On the other
hand, this does
not necessarily mean that the an¬
nual
number
of
marriages will
also tend
downward; in fact, there
rise in the number, for
the size of the population within
the
marriageable ages may in¬
be
may
a
crease.
nine-tenths
marry
their lifetimes.
of
our
in
the course of
The proportion of
women
in the population
has been rising at each age period,
the rise being particularly rapid
since 1940,
only 27%
younger
20 to 44 years,
ages
and to 40% at ages
45 to 64
years.
Another view of the shifts just
is seen in the changing age
noted
distribution
of
the
population.
1952
and especially so at the
ages.
Between 1940 and
the
a
number
with
total of
a
more
pected by 1960.
65
35
the
and
Their proportion of
population
rose
from
over.
total
4.7% in
1920 to 8.2%
in 1950, and
is expected to rise further to 9.4%
by 1975.
the
Also expected to rise
proportion
at
ages
5
to
is
19
of
our
years
of age,
than 36.500,000
Almost one-third
and
about
quarter at ages 35 to 44
rate
rise in
most
rapid
mothers
and
fathers
rw
25
narrow
30
ages
that
in
39
1950
were
almost
un-
one-
in
the
to 24 years,
1950
fully 50%
was
1940
the
and
even
1940
30 in
greater than
increases
were
to age 45. For
up
What
in
40%
were
ahead is hard to
just
that
Factors
one-
years.
say.
contributed
have
to
married
the
at marriage. Whether
average age
at
by
rise
a
in
connection, the gradual downward
in
trend
have
we
marriage rate
overlooked.
be
not
the
birth rate, even
must
Furthermore,
that
evidence
some
among
the
the longer
married couples, tends to conform
to
economic
variations; this is
an
influence which makes it very dif¬
ficult
to
ures
for
project yearly birth fig¬
the
immediate
years
ahead.
Widowhood
In the average marriage, where
the husdand is three years older
than
the
wife,
about 2 in
\
chances
the
3 that she will
to become
are
survive
widow. Since, in most
a
marriages, the husband is of the
same age or older than the wife,
the greater mortality of males has
always
given
widows
over
us
excess
an
of
widowers. Moreover,
population of widowers is kept
the lower by their greater chances
of
Their number
remarriages.
in
portion
of
of
years
from 43% in
rose
1950; at
the
7,000,000 in
among
in 1940 to
1951. By 1960
us
may
1920 to 74%
18%
children
our
Orphanhood
has promoted
our
orohanhood
Also of benefit in this
connection is the tendency toward
earlier
marriave
and
family-
over
ing
of
of
of school
children
better
something to be
aware
marketing of
goods
The
census
any
of
1950
the
over,
or
w
,nr.
,
„
t'r
.
by
1975.
cant
There
trends
force:
in
first,
the
ticipation of
upgrading
latter,
we
sigmfi-
....
to
find that the proportion
among
employed
males
(7)
over
to
1954;
has
,
hand,
or
the
proportion
in
.
may
total
will
be
and
by
by
1975; this
accompanied by
participation
of
upgrading
an
of
city
been
a
growth;
heavy
also there
migration
(9) Our
longevity
improving
rfc0Jd is of ,mark, of ou.r hi8b
?
standard
living; longevity un¬
,
clerical
have
reduced
economic loss due to premature death.
provements
sales work gained appreciably,
Chances of Surviving
force
toward the Far West,
sharply
the other
on
I^bor
central
the proportion engaged as private
1940
of
rise
(8) Qur population has become
heavily urbanized, but suburban
growth has been more rapid than
Among employed women,
,
level
its occupational structure,
aborers, but the proportion engaged in farming fell from 23%
from
.
will
people
million
increasing
women
proportion of employed men
engaged as unskilled workers or
fell
educational
Our
90
growth
an
the
workers
...
,
rapidly.
rose
proprietors, managers, and officials increased from 9.8 to 12.8%.
There was only a small change in
household
rapidly,
*;
the. American
from 5.5% in 1940 to 8.6% in
1954;
over the same
period, the class of
to 13%.
,
(6) Tbe
the
of professional and technical workers
ac-
"°°d*
occupational
regard
be
<?> Impr°ved mortality is pro Tot-,ng ^mily f ability and reduc'ng the problem of orphan-
growing labor
its
will
growth
(4) Our population of widows
will rise
increasing parsecond, the
With
acpro-
65
a<ye
women;
of
structure.
two
are
our
dec-
increase
growth will be
an increasing
(3) This
more
Through Specified Periods of Life
According to Mortality of 1951, 1939-1941, and 1900-1902
White Population by
Sex, United
States
Chances of Surviving
—per
AGE
INTERVAL
V
White Males—
-
G
-
23
23 -52
Birth—School
School
Entry
into
1951
of last
labor
804
985
960
992
990
971
887
-
65
Entry into labor force—Eligibility
65
-
75
Eligibility
retirement*—Ten
940
991
force
857
741
retirement*
669
629
509
thereafter
606
573
545
child
18
for
1900-02
965
.
into
force—Marriage
labor
Marriage—Marriage
1.000
1939-41
.
enrollment
enrollment—Entry
for
years
White Females—
0-6
Birth—School
6-18
School
enrollment
enrollment—Entry
23
-
49
Birth
starting earlier and the improved
younger.
In
the
case
21
-
62
Marriage—Husband's
outlook for longevity, the average
where
father
30, with
mortality the chances that
62
-
72
Husband's eligibility
newly born child will lose its
two
may
companied by an increase in the
excess of females over males in
our population, particularly after
?nbe^mfygrOWt^72'TS^
1960 and to
than 90,000,030
Marriage—Birth
couples is increasing.
next
million.
(2) This
,.
Entry
young
the
population
220
,
-
23
for
Within
our
over
portion of the aged and the young
4
21
a
to
® average companied by
-
life
ades,
years
coming years,
-
period of family
(1)
old and
force (lr*Rjfnnnno?/CfiS ,oversea^
nf S employment, this
Under conJ|"
of
high
tinn5
tions
our
shows
that:
a*.compared
in
IS
prospective
the
Labor Force Participation
r„
rinHin»
of
summary, a review
national population trends
service,
school
.
se
In
reported that
median
3le^d.
j f rapidly
i
Conclusion
aduUs,
of in
21
age
,
Sblemfkls JtotXTuS?
of
means,
educated
or¬
typical
,
«d
phanhood during dependency are
smaller
where
the
parent
is
is
,
11,500,000.
our
course,
problem.
for the chances
.
.
The upward trend in the school¬
18
family stability and
reduced
the
rapid
a
,
...
scS°agef 14 to'n^years wfi'i -rdagT th^° lam^llfe
number
0
improved morta'By record
current
in
19 the rise
32%.
In the
to
,
.
B.y 1960 those at the kinder-
6-18
building,
and
17
school
ahead, there will be
years
total
8,600,000.
greatly
Longevity
.
Typ'cal of the high standard
?
0
be
Pf0/
Is
excellent health status.
"
J' tbe av,erag<: length °£
il£e ,n the Unlted St?'es was
l
years' c.ompared W,th only
yea(rs„ at £he„ b£p™'ng of the
f™tury' Of great significance in
this connection is the marked reduc£l0n jn f^0n^lC losS by pre"
5.700,000
widows
Our
in
*
~
18 and
ages
from
was
16
enrolled
age
Familiar to
is, the raPid m0™-
Pow
population to the Far
es
that the pro-
us
children
in the country.
a11 by
chil-
our
education.
Especially
noteworthy are tne growing numbers in high school and college.
1940, somewhat over 2,000,000.
the other hand, over the same
period, the number of widows rose
almost
of
are more
On
about
constitute the fastest growing
areas
vanced
in
from
were
dren
receiving the benefits
of
family life, but larger proportions
of them are getting a more ad-
little different from that
was
18
to
Not only
.
the
under
,
,,
urban population, as compared
Wltb our !;,ulfa population, is generally wel1 known. However, the
increasing urbanization of our
Population has been accompanied
by a
to *be suburbs. These
in
now
be
the
size of family cannot be
this time. Also,
in this
average
said
will
tendencies
these
not
or
accompanied
orphans
that
Education
and the decline in
us
..
2,870,000 and that they
only 5.4% of our children
were
proportion of
increasing
P„pUiaUon Distribution
Jhe more ™?ld ^rowth of ou^
of these ages.
the recent high birth rates are the
among
estimates
among our adults 25 years
the. outlook for the trend
birth rate may be in the
the
years
r.*se>
the expense of the propor^lon over 2a years-
lost
age
from ages 20 to 34.
more
our
age.
number of fathers under age
in
1953
reduced
of some interest. The
are
6,400,000
had
at
released
find
comparisons between
1950
and
cial
we
under
had
who
18
these ages.
The
Actuary of the SoSecurity Administration has
growth in
were
labor force during the next two
decades is that the proportion of
ypun& people under 25 years will
in
the
of
case
proportion at ages 25 to 29 years.
The
children
Office
the
one-third at ages 20
and practically a like
almost
thai
all
1950,
of
Another significant change in our
or
In
years.
mothers
under
that
in
there
will
be
about 230
for every 100 females in
the labor force, but by 1975 this
ratio may be only 200 to 100.
males
both parents by death and
these constituted
16.3%
of
one
Census data tell
who
men
band from 25 to 29
one-third were at
one-tenth
20,
non¬
over
to
the
of
the
of
concentrated
age
and
older
the
practically
of .age;
years
were
years,
for
40-44 years.
ages
Over one-fifth
third
in¬
smaller
existent at
became
relative
the
mothers;
is
the
for
The
was
country
our
children
estimated
Since the beginning of the cen¬
tury, the average age at marriage
has been dropping. With families
ican
the
level.
married
married couples are under
*An address by Mr.
Spiegelman before
the New York Area
Chapter of the Amer¬
Statistical Association.
of
rise to about 40,000,000 ex¬
Most significant is the increase in
the proportion of our
elders, those
family
the
higher
rate is
and
crease
couples increased by 28%, reach¬
ing
eighth
young
1951
than
More
hand, the increase will amount to
at
in
praclicaly
1920,
been
small,
very
be
conditions.
married
rise
births
the
period ahead since its
variations
and
5
difficult
marriage
the
people
ages
is
It
be most rapid at the youngest and
at the oldest ages.
Between 1950
1975, the population at
averaged annually
marriages, but the
rate has been under 10 per 1,000
population; only the depression
years
1930 to 1933 saw a lower
estimates, will
census
years—1952 to
about 1,500,000
than 220,000,000, ac¬
more
last three
the
For
what
may
the conditions of World
War II, the postwar period has so
far been one of steady decline.
quar¬
population
million and the rate
one
Subsequent
about
to
in
that,
under 8 per
was
of
1950
shows
the
period since 1920, our low point
in marriages fell in the depression
year 1932, when their number was
record.
of
censuses
increase
from
people, it is neces¬
to examine first our marriage
sary
in prospect for the
our
for
is
births
up¬
in the number of births and
surge
of very young
level.
century
recent
the
understand
1954—we have
1950, our number in¬
almost 54%. With a
high birth
another
is
ter
while
or
three
the
continuation of present
rates,
seventh
ana
has
It
decades
ahead,
take on an increasour labor force.
In
i960
in
mortality about 1900.
just
mothers, the increases
Marriage
To
1,000.
is evident that the recent up¬
It
substantial
duced by
about
almost 40% by
go to
he
mind, at all times, that
these
projected
estimates
are
based merely on present knowl¬
edge and, as with all other prog¬
nostications of mankind, are sub¬
new
11.6% in 1950, but this is
as
in
borne
ject
much
our coun¬
swing in the birth rate has been
contributed to largely by the early
births in the family. The upward
trend in the rate of fifth, sixth,
the narrow
by
1933, when
18.4 per
rate of
birth
margin of 1%.
the
of
of
ratio.
bered
be¬
has
tion
level
a
for the first time females outnum¬
distribu¬
and
be
sex
osition
p
having been at
different
try had only 2,300,000 births and a
Along with this shift in the age
its
com
from 1960 to
from 1920 to 1950.
structure
the
shifts
after
per
far
is
record
from that of
the
level of about 32%
-
into
out¬
proportions will
remain stationary at ages 45 to
64 years (about 20%) and at ages
under 5 years (about 10%). How¬
ever, for the important producing
ages 20 to 44 years, the propor¬
tion of total population will fall to
1975
growth of our
population
and
1930,
The
30%.
under
that
is
of 38%
into the
n
and
1920
that of
to
somewhat
look
a
affairs.
Quite
1960
in
return
will
level
the
but
years,
25
following the
postwar peak of 26.6 in 1947. The
women.
popula¬
has
rate
1948,
since
1,000
the basis of
two
will
role
ing
per 1,000.
the typical
case
of
mothers
age
25, these
chances are now only 27 per 1,000,
compared with 108 per 1,000 on
1,000
per
about
of
level
a
a
4,000,000
over
birth
The
population.
with
history,
its
birth rate of 25.2
a
current
Although
in
somewhat
of
total
our
women
139
were
the
In
1,000; with mortality
beginning of the century,
the
Correspondingly,
closed, 1954, saw
country than
in
births
year
any
pro¬
people, greater excess of females,
and rapid rise in number of widows. Expects labor force to
total over 90 million by 1975, with increasing participation
portion of aged and
father before attaining age 18 are
only 65 per
these chances
more
Spiegelman forecasts
family
Birth
Associate Statistician, Metropolitan Life Insurance
lation increase to 220 million,
signifi¬
some
at
By MORTIMER SPIEGELMAN*
Mr.
of
in the marketing of
cance
Thursday, March 10, 1954
...
♦Under
973
into
of
first
the Old-Age
of
first
child—Marriage
eligibility
of last child
for
retirement
for retirem't—Ten yrs. thereafter
and Survivors Insurance Program
996
985
997
988
918
796
845
child
962
949
into labor force—Marriage
829
990
998
force
952
995
999
labor
783
613
734
725
651
of-the Social Security Act.
Volume 181
Number 5410... The Commercial and Financial Chronicle
'1157)
ANNUAL REPORT for 1954
?
>•
'
\
of P. LORILLARD COMPANY
.
Makers of Fine
CONSOLIDATED EARNINGS
Year Ended December 31
Tobacco ftoducts
~
1934
'
1933
Revenues:
Net Sales
$231,016.695
Other ( net)
$253,933,462
150.190,
............1............
152.118
_
Total Revenues
$231,196,885
$251,085,610
$215,936,851
$232,777,823
2.630.891
2.520.216
6,122,000
......
9,503.000
Costs and Expenses:
Cost of Goods Sold, Selling, Advertising, and
Administrative Expenses
Interest
Federal Income Taxes
.
Federal Excess Profits Tax
CICARETTES
Old OolO
State Income Taxes
c,«a,e
._.ptTlfS
Net
Earnings
Dividends
each
379,000
$22-1,851,742
.
Expenses
$246,892,039
$
.............u
Preferred Stock ($7.00
on
per
Dividends
$
per
"sfmerica'b
^^jiuareUeb
686,000
5,656,143
$
4,564.450
Earnings (retained for
$
depreciation amounted
to
4,457,477
in the
use
business)
Provision for
6,507,571
share in
each year)
Remainder of
7,193,571
per
....
Common Stock ($1.60
on
$
686,000
_
share in 1954. $2.28 in 1953)
kings
6,342,143
share in
year)
Earnings Applicable to Common Stock ($1.98
KI.Ng
filter
165,000
_
Total Costs and
1,712.000
'—
1,091,693
$
2,050,094
$1,156,837 in 1954 and $1,051,457 in 1953.
CONSOLIDATED BALANCE SHEETS
ASSETS
LIABILITIES
Decern her 31
~1934
CURRENT ASSETS:
Cash
$
Accounts
receivable—customers
$582,908
1954
in
December 31
1933
7,812,959
$
"
7,622,449
receivable
accounts
657,431
453,609
Inventories (at average cost):
d otal
12,341.618
14,188,749
4,415,694
4,847.955
$163,116,595
$155,432,525
supplies
current assets...!
....
EQUIPMENT
(As adjusted December 31,1932 by au¬
thorization of stockholders, plus sub¬
sequent
additions
at cost,
less retire¬
...:
$
991.874
$
„
7,979.883
16,979,834
15.421,127
$ 24.392.884
$ 27,518.065
depreciation
991.874
9.546,357
Buildings and building equipment
Machinery and equipment
Less accumulated
8,842,812
:
8,171,245
.
plant, and
equipment—net
EXPENSES
$ 18,675,223
$ 16,218,639
476,438
317,109
$ 54,239,799
$ 44,163,027
1962 )
Twenty-live Year 3$y Debentures, due
March 1, 1976 ($350,000 to be re¬
$ 14,200,000
$ 14,800,000
14,300,000
14,650,000
Total
current
liabilities
LONG-TERM
Twentv
DEBT:
Year
3r/r
October 1, 1963
tired
annually
Debentures,
($600,000
be
to
due
re¬
to
22,500.000
22.500.000
$ 51,000,000
$ 51.950.000
$
...........
$
CAPITAL AM)
RETAINED
EARNINGS:
V/f Cumulative Preferred Stock (par
value $100 per share) —
authorized 99,576 shares;
Common Stock (par value $10
share)—
9,800,000
9,800,000
per
authorized 5,000,000 shares;
AND
DEFERRED CHARGES
U N A M ORTIZ El)
1,225,779
466,196
i...
issued 98.000 shares
dotal property,
PREPAID
616,643
......
Accrued interest
Total long-term debt
ments):
Land
950.000
12,042,934
467,437
payrolls
850,000
6,851,057
....,
revenue
PROPERTY, PLANT,
AND
held by Company)
taxes
116,690,466
stamps
Materials and
3,450,467
(less
year
tired annually to 1975)
Twenty-five Year 3Debentures,
due April 1, 1978 ($675,000 to be
retired annually 1956-1977)
127,432,128
......
.
Manufactured stock and
one
Other accrued liabilities
Leaf tobacco
$ 25,700,000
;..
in 1954 $100,000
11,629.297
Accrued
Accrued
10,456,765
1933
$ 40,700,000
4,288,466
...
payable
Debentures due within
1953 for doubtful accounts and cash
1934
Notes payable (hanks)
Accounts
(less
and $660,839 in
discounts)
Other
CURRENT LIABILITIES:
$
...
1,529,459
$
$
888,275
$
1,387,373
issued 2,852,854.89 shares
Additional
less expenses oil
D11B E N IT R E
28,528,549
28,528,549
paid-in capital
(premiums
common stock
issued )
BRANDS,
AND
TRADE
EXPENSE.
952,550
8,085,578
8,085,578
31.463.934
$ 78,969.754
$ 77,878.061
Tota i
$184,209,553
$173,991,088
Earnings retained for
M ARKS,
AND
a
1
$184,209,553
As
1
in the
result of restrictions
common
Total capital and retained
$173,991,088
$
;
Total
contained in the debenture indentures
on
the
payment
of dividends
Other Products
glad to send
Annual Report
119 West 40th
you a copy of our illustrated
for 1954. Write P. Lorillard Company,
Cigarettes
Street, New York 18, N. Y.
MURAD
AMERICA'S OLDEST TOBACCO MERCHANTS
Leading
Products
of
on
purchase, redemption, or retirement of such stock, the amount which could
expended for such purposes at December 31, 1954 was limited to approximately $10,641,000.
stock ami the
have been
Other
use
business
GOODWILL
We'll be
_
32.555,627
earnings
DISCOUNT
•
ESTABLISHED 1760
HELMAR
Smoking Tobaccos
FRIENDS
HOUSE
INDIA
P. Lorillard
Company
Cigars
VAN
BIBBER
BETWEEN
THE
ACTS
Chewing Tobaccos
BAGPIPE
HAVANA
BLOSSOM
29
SO
The Commercial and Financial Chronicle
(1158)
Electronics in the
competition
motor
vehicle
and
the
munication
By ELMER W. ENGSTROM*
Radio
Research
Corporation
the
America
of
of communication to the aver¬
age man and to the general public, Dr. Engslrom traces ad¬
vances made
in communications during the last century and
the contributions made to these advances by engineers. Says
recent developments in communications have been revolution¬
ary, but these new discoveries may take some time to bear
fruit.
Lists
number of recent advances in
a
rotary
duction
After stressing the importance
graving.
been
the
added
sion
by radio.
of
and
cilities
outside
his
profession,
especially important
in
us
the
tec h
to ail of
one
ft'? "xvp&'W*
T'" wy"
increasing
for
an
of
view
reliance
is
tinued
perity and
in
today
much
cover
meant
is
architect
Our
E.
Dr.
W.
of
more
to¬
communications
did not exist
in the
that distant
meant
building
to
'
communications
They
tronic
transmission
tionary developments leading into
an
era
of expansion.
The only
means
of
rapid
communication
Private and Mass Communications
in
and
These
us
for
public
The telephone
Private
1880
in
1880
in
emergencies, the
telegraph?;- Business correspond¬
ence
employed the typewriter* to
Mail depended upon
combination
of
machine
and
extent.
some
was
restricted
entirely
to
the
printed page in books, magazines
the
upon
variety
of
engineering
talents
have been available to
us
75
to
years.
_
for
Mass
and
occasion, the 75th anniver¬
of the founding of the ASME,
provides a logical framework for
today's
ing
dealing in specific terms with the
principal
engineering
contribu¬
and
sys¬
standards.
area
Man
cumstances
here
of
my
The
post.
presence
with
you
today.
My part
proceedings began with a
telephone call from Mr. Marshall.
in
the
On
a
the
following day, I received
typed letter confirming the ar¬
rangements
and
for
enclosing
draft
of
participation
mimeographed
morning,
Princeton
to
a
drive
the
up
New
Jersey Turnpike and through the
Lincoln Tunnel, arriving in little
than,
more
Building.
vator
to
floor
I
in
I
rode
my
a
remained
hour
an
up
office
fraction
at
the
in
RCA
the
ele¬
the
on
of
53rd
minute.
a
long enough to make
and receive
a
few telephone
and to
a
few
scan
of
one
which
we
in
tedious
calls
letters, at least
had
been
posted
presentation
have
the
become
press
today.
itself
process
matter
in
scribers
office
a
many
tribution.
which
routine
public
eliminates
a
voice
or
your
€ars.
Opening of the Modern
Thus, 75
modern
years
the
ago,
communications
beginning.
While
the
munication
the
new
sive
as
age
far
Era
of
era
was
just
telegraph
provided the first electrical
back
as
of rapid and
com¬
work
of
exten¬
may be said
have opened in 1876 with the
invention of the telephone.
The
to
founding of this Society in 1880
coincided closely with the start
of
long
a
nal
series
scientific
achievements.
of
and
phenome¬
engineering
These
achieve¬
This
prosaic
description of
an
an
av¬
*An
^5th
address by Dr. Engstrom at the
Anniversary Meeting of the Amer¬
ican
Society
Hew
York
of
Mechanical
City, Feb. 16,
Engineers,
1955.
ever
known.
The
In
their
involving
coming
-
This
dial
to
systems
is
service
commercial
tems.
In
these systems,
communication
central
a
Of
Sight
These two
voice
and
world
ter
of
and
engineers,
into a vast and efficient
complex
of
telephone and telegraph fa¬
cilities reaching to the remotest
portions
road,
of
the
the
earth.
The
rail¬
only method of mass
transportation in 1880, has under¬
relation
In
the
to
with only
eye,
taken
that
and
now
In
1955
has
been
stantaneous
tinent
the
by
endowed
sight
entirely
an
will
screen
means
the
of
small
homes, and is
the
the
upon
same
time
conveying
era
of
now
visual
tion
ing
of
At
high-speed photoengrav¬
and printing processes have
The
through
from
this
development.
scientist
the
struments
for
creation
and
engineer
development of in¬
measuring
of
and
terminology
for
and
we
in
develop¬
expect
the
between
in
of
field
functions
of
bookkeeping,
inventory control, accounting and
inspection.
The
application of electronic
analyzing, data handling and con¬
trol mechanisms may be
expected
to reach far beyond clerical func¬
tions.
to
These systems will
lizemarketing
ities
Our
individ¬
the
are
existing
in turn
n
is
study
of
and
esses,
iinished
It
crowding
wire
products.
that
apparent
the
that
from
in
we
vances.
proc¬
delivery
Already
such
of
is
it
systems
can
improve upon the periormance of
the
human
brain
in
repetitive
thought processes, wherever data
be pre-analyzed and stored
can
in
electronic memory.
an
These
future
that
ones
will
developments
in
be
service
are
dur¬
75
Them roots
years.
be
can
facil¬
the
systems.
air
This
fundamentals
of
to the
employment
some
cer¬
tainty.
The
By
Scientist-Engineer Team
today's
in 1880
ogy
Basic
standards,
scientific
limited.
not
was
But
technol¬
complex.
knowledge
was
specialization
is a necessity in both science and
engineering.
now,
1900,
scientists
slowly
employed in industry. With
employment of scientists, in¬
were
the
dustrial
research
Science
ing
and
and
between
the
engineer,
established in
already
was
birth.
mean¬
industry.
relationships
scientist
wno
its
on
in
purpose
Functional
the
had
began to take
industry, unfolded and team per¬
began.
Now, the roles of the scientist
and the engineer are both estab¬
lished in industry.
A full team
relationship has developed. This
formance
is
much
so
earlier
the
case
clear-cut
not
are
A
always
bridge
between
that
the
distinctions
the
of
be
to
has
been
scientist-en¬
gineer in industry and the scien¬
tist in the
the
university. As a result,
of application of sci¬
process
entific advances has been speeded.
Need for Wider Knowledge
The
purpose in reviewing the
development of the scientist-en¬
gineer relationship is to set the
stage
for
further
obligation.
necessity for both the
scientist and the engineer to be¬
This
a
is the
familiar
with,
and
to
de¬
broader
areas
of
engineer
relationship
must
be
broadened to include the arts, the
humanities,
and
will
needs
in
be
order
the
that
politics.
in
the
the
These
future
scientist
and
engineer may discharge with
competence
their
growing
re¬
sponsibilities.
greater understand¬
communication
may
with
expected
already
are
than,
technology for which they are
basically trained.
The scientist-
leading to the renewed
efficient
is
schedule
velop skills in
available channels.
ings
ana-
data,
order mate¬
the
communication theory and
more
develop
may
sales
schedule production,
come
of
communications
today
and
and
a
Channels
(3)
where they
point
a
of
Instan¬
Communication
wirephoto and
the evolu¬
tive
recognized.
communica¬
More Efficient Use
have experi¬
as
in
improvement
ones,
new
graphic arts,
information in
well
uses.
They will assume,
of the routine and repeti¬
many
formed
the
anywhere
en¬
of
resulted
the
as
controlled
elsewhere
country,
perhaps in the world, at any
in any place is a defin¬
ite possibility.
a
perfection
a
time and
phenomenal development
speed, quality and quantity.
The
by
picture
a
and
few
color.
and
and
advance
the
durable form,
the
of
uals
some
30 million
in
commercial
taneous contact
was
has since entered
of
Today's pic¬
personal communications.
in¬
years ago,
interest
type
new
box
systems
major
of
Television, which
practically
non-existent
a
tering
With
tions
con¬
system.
be adapted
room.
(2)
handling
machines,
by the complicated
computers
of
today,
increasingly to a
variety of business and in¬
will
devices.
replaced
hung
the wall
on
a
existing
television
a
be
of
range
particular
receiver.
tube
ment
with
across
wide
Communications
processes
American
and
Advances in Personal
archaic.
appear
contrast,
a
be
was
photograph
developed by
Data
electronic
function
occasional assist
an
imperfect
an
lighting
communications
limited to the range of the human
from
in
of
the
ex¬
Syn¬
After
result
from
Music
foreshadowed
we
operation
frame
of
encoun¬
communication
and
new
of
may expect much
of improved perform¬
They also will permit more
thin
the
completely
revolutionary
development. To the American of
sight
illumina¬
materials
new
television
are
—
of
types
ture
message
field
we
field
will
a
radiophoto,
the
in
1880.
have
at
—
trie
One
Communication
recent
mosc
RCA
Business and Industry
(4)
re¬
design
of
electronic
equipment, and greater economy
Development
examples
is
compact
of
A
the
infor¬
it
in the way
di¬
is
Data Handling Machines for
result of this develop¬
a
techniques
office.
communication
such
when
and
these
present
Revolutionary
in
largely
units
also
is
variety of electrolumines¬
photosensitive materials
From
scattered
among
mobile
or
to
in response
in reverse, we
ing the early portion of the next
efficient
ance.
word,
thesizer.
and in television.
relays to provide a
effective means of voice
highly
a
more
radio
look
can
systems which
bidding
our
spoken
ample
of
and
the tele¬
and
the
paper
We
apparent and their future growth
new
is finding application in
phone has been wedded to micro¬
wave
There
''recalling"
In
tion,
growing complex of
radio-telephone sys¬
a
have
province
electronic computers and
cent
development the mechani¬
engineer has played his role.
Augmenting
this
wide
public
the
can
magnetic
as
ment.
cal
will do
Oxi
speak.
machines
the
We
system which
directly-
we
speak
magnetic
capable of stor¬
quantities of informa¬
quired, is
in
tube.
that
in
'ihe compact
large
mation
the
for
a
rials, control manufacturing
from
device,
instantly
be¬
the
development of
tion for
million
is
over
already have
jobs
been
vacuum
ing
an
through
automatic
transition
50
service
to
transistors
electronic
memory
service
of
use
materials,
no
stands
wide
than
more
telephones.
exist
place
nation
limited communications
available to the American of 1880
evolved,
basic
scattered
1880
of
discoveries
resulting
research
previously
net¬
The
we
development and the in¬
creasing
This
telephone
today.
their
those
the *most
sible tne
the
services
longer.
1844,
communication
hands of scientists
average day in the life of
from
commu¬
significant is
germanium, which has made pos¬
the
enced
describing these
happenings to you over
communication.
materials
Among
the development of radio into the
1880,
The
electronic
been put to work in several areas.
in
exists
alter
charac¬
more
New
between
example
sight communication
of
will
systems—increase
solid-state
countries.
overseas
ited
lack
These
precise control
electronic processes.
many
world¬
provide customer-
evolutionary
by this fact and by the
facilities for rapid dis¬
knowledge
new
the design and
our
avail¬
has made
of
today.
us
the
ductive social unit
am
my
give
sub¬
type
words
to
dustrial
the sold-state field promise
rudimentary
telephone system of 1880 through
I
on
in
au¬
telegraph
with
service
similar
more
system
teristics of
country.
central
a
high-speed rotary press.
Newspaper circulation was lim¬
both
devices.
per¬
business
thence
to-customer
have
turned
this
nation
into the wealthiest and most
pro¬
strain
with
These facilities
ments
any
link
and
only yesterday from a city more
than 1,000 miles
away.
And now
address
and
wide radio transmission facilities.
The
of
fund
These
tomatically
fol¬
as
solid-state
employ
The
was
a
in
already
able
to
the absence
Research
basically
facilities
will
wide
mitting messages
accus¬
the
my
today's program.
This
I got into my car in
local
the
telegraph
of photoen¬
art
pictorial
printing
own
News-gather¬
be summarized
beyond
across
forward
the
upon
capabilities far
graving, still in the early stages, installations
of development, provided none of
rected from
tomed
Consider, for example, the cir¬
primitive by
beyond
depended
upon
which
the
for
were
facilities
the
today and tomorrow.
1880
1880
empnasis
growing
nications
teleprinter
look
we
number.
spoken form.
wire
simple
because
the
or
can
of
physms
whose
in
Even the publi¬
newspapers.
sary
communications
delivery.
communication
cations of
This
Average
The
name
We
telephone sys¬
give us the party
a
en¬
a
Solid-State Devices
the
desire
we
width.
will
of
now,
bear their
link has been expanded by multi¬
channel circuits, capable of trans¬
integrated
,
today's communications
Communications
to
its
wnich
number
time to
are
(1)
messages.
way
with
channel
forward to
apparent.
In all
trends, tne role of the
Even
these may
of code
use
of
given
tape.
occasionally,
animal
tems of
forated
local
This
states
only in the most
general terms the dependence of
the
has
machine
thus largely a matter of per¬
sonal contact or letter post, and,
was
a
to
key
teletype
intercontinental
communication
use.
tions
The
transmission
evolves
world,
services
50
the
which
discoveries
some
lows:
rudimentary
system of 1880 is the
too costly of communica¬
or
tions
can
from
coded
data, properly
processed, reproduce the results
in
printed
and
even
now
in
Al¬
ago.
voice
the telegraph.
recent
remaining
entire United States.
elec¬
and
efficient
largely through the ability of the
engineer to translate new scien¬
tific
knowledge into a flow of
past
years
only vestige
the ingen.ous but
the
tele¬
the
systems have been created for
the
75
the
A
printed word and picture.
during
of
key
the
most
from
and
just coming into being, and only
47,000 instruments, existed in the
relatively long distances
over
the rapid mass distribution of the
that
graph
line
wire
are
we
development, arrangement and
use
of
complicated
electronic,
electrical, and mechanical equip¬
ment.
The
most
significant
of
businessmen in the United States
our
the
swift
and
transportation of men and goods
products and
direct
cross-country
sight
of
the
the
at
revolu¬
of
the
are
and
sound,
of
stood
series
a
we
was
comprise
corners
the art of
year,
out
was
much the product of
ment.
of
in
scended
Private
communications
asking what the
modern
all
In
Engstrom
general technological develop¬
to
standard
threshold
to
has
very
television—two
to which
which
in
gineer appears to be of constantly
increasing importance because of
indicated
choice
Take, for ex¬
ample, today's complex of tele¬
graph and wireless systems, de¬
in
world of 1880.
construction.
are
tunnel,
by
these
modern
be
can
random
a
Future
of gazing
process
directions
fruit.
accustomed.
now
of
media which
to
akin
the
ik**? Ml
communica¬
tions
The
telephone,
by
of all the media
highway, the vehicu¬
the highspeed eleva¬
day's
territory.
Asking
what
the engineer
has
the
typewriter, the mimeo¬
machine, the automobile,
express
and
to
appears
only
organized in 1880.
was
includes
lar
discus-
sion
non¬
almost
tor, air mail, and the public ad¬
dress system. And before today is
over, I shall most probably ex¬
perience some contact with radio
se¬
this
existed
or
the
pros¬
curity.
My part
ciety
graph
con¬
fa¬
either
were
in
a
rudimentary state when "this So¬
modern
nology
to
communications
nine
happens
which
existent
list
upon
our
involve
ly
engineer's
to
the
headed today are indicated clear¬
trends
the
contribution
communications
businessman
The
Contributions of the
measure
of
equal distance into the future.
an
Engineer
The
specific
erage
complementary
transmis¬
sight
plex
can
do
simply
might be too com¬
we
look
before jumping to the pres¬
time leads inevitably imo tne
ent
all of these has
and
com¬
know-
of looking back 75
process
will take
cation channels.
The subject of the engineer and
his communications, both within
intro¬
photoen¬
1880—the
voice
of
and
is to
measure
years
facility unkown in
a
of
Specific
of communi¬
uses
high-speed
And to
world
the
and
press
of
what otherwise
is progress.
know
The
major
a
information,
in
Communications
1880, has experi¬
revolution with
engineering development of
enced
Engineering:,
and
to
results
tem
in
the
Vice-President,
Executive
To
merce.
to
greatly
of
industry
technology,
airplane.
The printed page, which provided
the only mass medium of com¬
added
nave
communication
the
with two entirely
transport developments—the
new
Field of Communication
standards
technological improvements
gone
in
Thursday, March 10, 1954
...
Through
the
Future
theory
expect important ad¬
coding
of
Given
these
the
Responsibilities
proper
exercise
of
responsibilities, there is no
Volume 181
Number 5410...The Commercial and Financial Chronicle
(1159)
apparent limit to the technologi¬
cal progress and
consequent pros+
perity
and
ahead
for
well-being
all
of
development
swift
communications
tion
facilities
found
effect
which
we
and
and
transporta¬
have
had
the
upon
sure
a
pro¬
BEVERLY
SAN
Horwitz
ties
is
HILLS, Calif.—Louis
engaging in
business
South
from
Robertson.
in
world
Warden J. Smith Formed
Opens
(Special to The Financial Chronicle)
lie
Already the
us.
of
that
Louis Horwitz
securi¬
a
offices
at
242
Boulevard.,
FRANCISCO,
Warden
J.
Warden
offices
gage
J.
at
in
Smith
Smith
has
formed
Company with
1305 Polk Street to
securities business.
a
Warren Clark Opens
Calif.—
en¬
HOUSTON, Tex.
Clark
and
C
a
has
formed
H. D.
Warren
—
Warren
E.
Clark
Company with offices in the
& I Life
Gallagher Co. Formed
JERSEY
D.
CITY,
Gallagher
Gallagher &
N.
has
Co.
In
engage in
securities business.
at
921
Bergen Avenue to
engage
in
securities
business.
of communica¬
means
contact
our
with
home and
fellow
our
even
greater
varied
can
and
cations
understanding
Increased
be
can
of
a
spirit
need
to
to
a
one¬
In
purpose.
might be achieved,
be
that
sure
systems and
munications
among
communi¬
means
and
order that this
our
the
to come in the
ones
peoples.
we
and
to promote greater har¬
serve
ness
made
spheres of communication
mony
all
at
men
abroad.
The- advances
and
we
circuits of
com¬
attuned with, and
of all.
This,
are
include, the Creator
too, is good engineering.
A. C.
Allyn & Go.
■■V'tV
Reports New Peak
CHICAGO, 111. —A. C. Allyn
and
Company, Incorporated, 122
South La Salle
bankers,
Street, investment
established
new
in
peaks
1954
un-
derwritings in
both
rate
corpo¬
and
nicipal
A.
mu¬
issues,
Allyn,
C.
Chairman,
disclosed
the
in
annual
report.
New
highs in listed
and
unlisted
i.t ies
s ec u r
transactions
also
C.
-were
reached,
ac¬
cording to the
Allyn
which
report
covers, as well, the activities of
A. C. Allyn & Co., the affiliated
partnership
of
the
Last
firm's
totaled
of
direct
commitments
$129,981,923,
63.3%
up
1953.
Combined
firms
capital
amounted
the close of
in
Mr.
to
of
the
two
to
$11,415 550 at
a
gain of $393,-
1954,
240 for the year.
panded
461
memoer
banking
participated in
underwritings.
or
$5,343,808,516
from
a
investment
managed
The
is
principal stock exchanges.
year
the
Chicago-head¬
quartered
firm
which
Net income
ex¬
$1,325,328 from $646,-
dividual
vestors
and
that
1954
stock
institutional
in¬
the
stabilized and
economy
had
would move ahead
further
underwritings
private
placement
increased
degree."
an
Increased
noted in
was
to
of
seling
on
tions.
Allyn
"important
activity
and
also
coun¬
consolida¬
maintains
23 cities in addition to
again records
completed another
of record-breaking
struction. In addition, the restrictions
offices
for
space
heating
of its most successful
serves
an
were
Mr.
with
Staff
\
POWER
AND
LIGHT
COMPANY
use
con¬
BALANCE SHEET
of natural
ASSETS
1954
lifted. And DP&L put
Other
assets
1953*
$193,188,000
$184,096,000
22,739,000
Property and plant
14,449,000
...'
assets
570,000
1,278,000
$216,497,000
on some
$199,823,000
..$166,397,000
.$149,232,000
LIABILITIES
where business is
on
its toes
Capitalization
.
.
.
vidual
use
of
our
are
buying
new
homes, and the indi¬
15,161,000
18,845,000
Reserves
34,939,000
31,746,000
$199,823,000
services is well above the national average.
RESULTS
This company has been in the fortunate
advantage of these opportunities. We
are
OF
OPERATIONS
position to take
confident that in
1954
1953*
$ 61,547,000
REVENUE
$ 57,501,000
EXPENSES
and progressive
area
will continue to
our
50,915,000
Gross income
INCOME
services.
$
DEDUCTIONS
10,632,000
our
1954
—
Steven
PREFERRED
Earnings
report into
a
"cap¬
sule" shown in the chart
on
the right. We would like to
of the full
Hoffman
Bache &
on
Number of
$
CLEVELAND,
Ohio—Harry
become
V.
connected
with
Field, Richards & Co., Union
Commerce Building.
8,150,000
$
7,201,000
1,828,000
7,490,000
per common
2,600,059
2,585,728
$2.88
2.78*
share
outstanding
settlement of purchased gas rate Increases and
federal income taxes
POWER AND LIGHT COMPANY
25 North Main Street
949,000
shares out¬
report. Just write—
THE DAYTON
$
949,000
stock
common
common
standing at December 31
Earnings
8,439,000
Co.
(Special to The Financial Chronicle)
9,978,000
2,193,000
DIVIDENDS
'Restated to include
send you a copy
47,523,000
$
;1:;
Kremchek in the
Walston,
and
has
DAYTON
$216,497,000
well-paid employees
We've condensed
Now With Field, Richards
Holland
THE
$
to
CLEVELAND, Ohio
was
the
home
promotion efforts.
area
1955 this prosperous
has become associated
with Prescott & Co., National
City
Bank Building
members of
the
New
York, and Midwest
Stock
Goodwin
on
new
in
Chicago.
Kremchek
Exchanges.
phase of'
of Ohio has
Current
gas
annual
past
every
area
December 31
year
(Special to The Financial
Chronicle)
&
highs in
company's operation. West-Central
increase the demand for
Prescott Adds
Dayton Power and Light
new
Current liabilities
and
securities
arranging and
mergers
the
DP&L
improvement."
Secondary
also
once
1953.
Allyn described
market developments as "not so
significant
in
reporting
rising
prices as indicating a strengthen¬
ing confidence on the part of in¬
with
The 1954 annual report of The
Company
•
D.
offices
daily lives, we have
brought
into
ever-wider
been
H.
with
the
Building to
Domestically, we
have seen a steady rise in indus¬
trial productivity and corporate
efficiency, aided by continually
tions.
J.—Hubert
formed
live.
improving
31
Dayton 1, Ohio
J«"""
«~u
|
32
The Commercial and Financial Chronicle
(1160)
Continued from
first
might well change the conditions
logical
of human existence
page
the
more
drastic¬
ally than all the work in the fields
industry, communications and
transportation. Thus far electronic
devices are being utilized for see¬
that
are almost god-like by com¬
parison with the past. Eany civil¬
izations
beasts
built
were
ties
the
brain
and
lungs,
for
giving
internal treatment with artificial¬
slave labor,
on
the
ing through the human body, for
producing artificial fever, for lo¬
cating and diagnosing damage to
Its Electrons
changes
chemical
systems
oe
may
There
seems
present
be
to
time
limit
no
at
benefits
the
to
possible in the field of medicine.
So true is this that some authori¬
believe that
nological
ultimately tech¬
advances
possible not only
aging process but
considerably.
may
make it
up the
lengthen
to slow
even
Both will have much more leisure
eliminate pots and pans and cook
a meal or bake a cake in one to
three
bread
winner
office
hold
many
retirement
more
the
telephone-tv,
new
prognosis.
Great Changes
field for diagnosis and
By
their
use
physio¬
home
and
affect
equally
be
unaffected
a
the cellar,
not even
room,
by
the
new
atomic-electronic applications that
the
most
minutes; automatic electric
lights without wires or plugs, in¬
expensive portable air condition¬
ers without moving
parts, ultra¬
sonic home freezers, refrigerators,
dishwashers and garbage dispos¬
automatic
ers,
doors
and
ated food lockers.
pend.
great
to
years
In the home of the future not
single
Social Habits at Hand
live
enjoy.
will
New
will
too
inevitably will be, both will have
All of these changes augur new
social habits and they begin in
isotopes have opened up a
house¬
longer and as the age for pension¬
ing oy industry is lowered, as it
life
for
and its electrons.
other from
Both
active
burden, wind-mills and
finally
the
steam
engine.
The
building blocks of the new civilazation that is rising are the atom
from his factory or
the
tasks.
the housewife.
and
one
and
ly generated ultra-violet rays and
many
other beneficial pur¬
poses.
At the same time, radio¬
of
Thursday, March 10, 1954
•.
time—the
in
re¬
vealed and accurately charted.
of
The Atom and
and
human
.
The
list
without
of
gadgets
end.
radar
It
is al¬
includes
stoves
that
And
and
source
irradi¬
for heat
will
be
energy.
Even
side
be
their
power,
atomic
as
tiower
tne
the
home
that
and flowers
a
can
garden
the
beautiful.
more
indicate
of
along
future
Recent
number
of
will
tests
plants
be made to bloom
__
Already great changes are tak¬
ing place in industry, transporta¬
tion, education, communications,
merchandising, banking, medicine
other
and
fields.
New
services and
new
products,
methods
new
are
being created and out of them are
coming
new
work
and
social
habits.
Take
industry,
Wartime
for
example.
achievements
in
elec¬
tronics stimulated its broad adop¬
tion of electronic factory controls.
this is Merritt - Chapman
With
the perfection of the "robot
brain" or master computer, indus¬
try
turned
mation.
its
attention
to
&
auto¬
All the while atomic
en¬
ergy for industrial use has been in
the making.
Simultaneously, solar
a possibility waen
became
power
the Bell Telephone
Company un¬
veiled its first battery to convert
sunlight
into
electricity
through
silicon resistors.
Widespread adoption of anv one
these developments could revitalize industry. A mathematical
of
'
indication of the importance of
atomic energy is the fact that one
pound of atomic fuel fully con¬
sumed
and
is
the
equivalent
one-half
coal.
As
amount
that
miles
on
alent
million
for
falls
of
two
pounds
solar
of
the
energy
two
on
square
of
a
day is the equiv¬
sunny
the force that devastated
Hiroshima.
Translate any or all
of these innovations into
freedom
from drudgery for mankind
and
by comparison
the load that the
steam engine lifted from the
back
of man becomes
infinitesimal.
As in
industry,
so too in com¬
The science of elec¬
munications.
tronics already has
given us telephonics, radionics, high fidelity
reproductions,
television,
radar,
loran, shoran
the
limits
and
Nor have
sonar.
nearly
been
reached.
Many of these areas are in their
infancy. Television, for example,
is
far from its final state of
perfec¬
tion.
Three-dimenulonal, multi¬
screen '-olor
television is
c^toinly
within the realm of
possibility.
It is feasible because
scientists
tell
that what the mind of
us
man
can
conceive, modern science can
translate into
reality. In this sense
the Twentieth
Century is the
of dreams come
true.
of
our
v?5es now
existence
prob¬
are
ably. only prototypes of the
marvelous
scientists
word
.
things to
are
to be
and
—
they
more
If the
come.
taken at their
be
can
short-range walky-talky
for
age
Thus many
atomic de-
electronic and
the
—
of today,
example, may foreshadow the
miraculous device of
that
similarly will
the
future
permit
two
people anywhere in the world
to
communicate with each other.
Transportation already has been
transformed by the twin
sciences
although the full force of their
impact
next
of
will
sound
The
be
decade.
the
over
atomic submarine
makes the
headlines
craft
regularly.
will
toj<e
stage
in
ture.
Now
the
chunk
Robot
center
too
plane
distant
fuel
that
the
no
Atomic
will
minute
And
the
mobile does
a
a
ships
are
definitely
although at the
auto¬
seem
feasible
undoubtedly will follow.
In
medicine
sciences
And
to
are
such
too
great
an
fly
on
powered
atom-driven
not
the
fu¬
the
than
locomotives
forecast.
is
world
bigger
-
air¬
of
the horizon
around
of
baseball.
the
not
on
atom-driven
non-stop
and
spread
Flight at the speed
been demonstrated.
has
.the
new
extent
it
twin
factors.
that they
CONSTRUCTION
NEWPORT
MARION
DEPARTMENT
CORP.
SHOVEL CO.
MACHINE CORP.
General Offices
POWER
THE SHOUP VOTING
Newport, Kentucky
THE OSGOOD CO.
New York, New York
New York, New York
Cold Rolled Sheets
Marion, Ohio
Voting Machines
Construction of
Hot Rolled Sheets
Every Type
Industrial
Chemical
& Coils
Hot Rolled Pickled
Sheets & Coils
Building
Galvanized Sheets
Marine
Galvannealed Sheets
Heavy
Colorbond Sheets
Electrical Sheets
Alloy Sheets
&
Plates
Electric Weld Line
Pipe
Roofing. Siding
& Accessories
Excavating Equipment
Power Shovels
from y2 to 60 cu.
Truck Cranes
from 15
to
25
yds.
tons
Mobilcranes
from 25
to
Log Loaders
45 tons
Scott
Volume 131
earlier,
usual
Number 5410
...
profusely and in
more
under
patterns
atomic
The Commercial and Financial Chronicle
un¬
ra¬
diation.
tests
have
been
an
Thus
disclosed, for example, that
offset
when potatoes are given minimum
atom
radiation
treatment, they
might
be
caused
not
likewise
longer
rot
that
periods
that atomic
long
It
range
can
All
energy is
means,
that
atom
tests
crops
resistant.
business.
after
tilizer,
ray
be
made
sterilization
isotopes
use
of
any
the
of
or
fer¬
minimize pests and bring
degree of
all
of
accuracy
these
various
when
are
with
any
develop¬
ments will become realities. Some
already
in
pected
Tne
Others
so.
the
thai
ract
cleonics
very
be
ex¬
tries.
Out
future.
came
new
can
near
elecionics
ana
nu¬
panied
unfolding simultan¬
eously is accelerating the pace of
are
development in
or
man-made
or
It would be difficult to say
means
for
drought
Ultimately
the
the
that
with less work.
in the food
too,
in
be
about the production of more food
indicate
this
by
re¬
can
shortages
other natural
revolutionize
can
for
-
some
catastrophe.
Meats
preserved
Other
certain
disease
be
can
treatment.
quickly.
so
food
anywhere
to
will
means
through this method
accumulated
These
important
world
have
radiation
atomic
preservation.
serves
made
cereais, and vegetables.
through
become
can
of
Similar
on
foods
(1161)
both
In
threshold
the
too,
been
In
only
the
reached.
taken
revolution
a
daring
it
would
man
to
whole
pattern
habits
accom¬
At
to
the
have
Edward
second
What
anything
forecast
and
great
in
lies
industrial
ahead is
human
this much is certain.
would bring
sued
since
ably
contained
trove of nature that
They fostered
such industries as rubber, cement,
oil and many metals. From these,
in turn, arose great service indus¬
beyond
experience
beyond human forecast.
the changes that the steam engine,
the automobile and the airplane
about.
Of N. Y. See. Dealers
spirit.
history seems destined
repeat itself, but on a grandiose
scale.
500 (o Atfend Dinner
by greater leisure time
unprecedented liberation
revolution
beginning of the first indus¬
trial
an
the
social
of the human
bocn fields.
fields,
has
and
of
time
But
The treasure
man
has pur¬
began is undeni¬
in the universe's
tiniest speak of matter—the atom
and its electrons.
33
J.
Secretary
Enright,
Executi
jq
of
the New York
S
e
c
u
i t y
r
Dealers
Asso¬
ciation, re¬
ports that
500
sched¬
are
uled to attend
Associa¬
the
tion's 29th
il
to
an¬
dinner
ual
be
held
at
Biltmore
the
Hotel Mar. 11.
Last
minute
reservations
be
may
with
DIgby
G. Statu*.-
Lugene
made
him
at
4-1650
subscription $f5,
promptly.
—
but calls should be made
Eugene Statter, Hoit,
Company,
is President
Rose &
of the
Association.
serving
industry
McCioy to Speak at
Anniversary Dinnei
J.
McCioy
at
John
the
speaker
March
Friday,
Chairman
Waldorf-Astor'a.
of Peddle,
the Board
of
National
Chase
Scrt
the
in
11
the
of
Mr. McCioy, a graduate
is
School's
Alumni Association on
New York
Room
the
be
Peddie
The
of
Dinner
will
15th Anniversary
of -the
and
Bank
for¬
for
U. S. High Commissioner
Germany and President of
the
World
merly
Orrin
Bank.
G.
Judd
of
Brooklyn,
a
partner in the law firm of Gold¬
stein, Judd and Gurfein, N. Y. C.,
also a graduate of Peddie, will be
toastmaster.
The Peddie School,
located in Hightstown, N. J., has
celebrated its 90th anniver¬
as
an
independent college
just
sary
M.
school.
preparatory
Stern, Douglass Go. to
Be Formed
your
confidence is
justifiod^^J
where this flag flies
SAN
Douglass
Co.,
&
March
formed
will
be
offices
at
Inc.,
with
28
California
465
Goad
on
FRANCISCO, Cal.—Stein,
Street,
to
in the securities business.
ficers of the
engage
Tne of¬
firm, which will
membership
in
the
New
hold
new
Stock
York
Exchange,
be:
will
Earl S. Douglass, Chairman of the
W. Stern, President;
Board; Carl
Charles
pDreifus, Jr., SecretaryTreasurer;
Chester
Apy,
New
York, member of the Exchange,
Vice-President; Donn C. Douglacs,
Harry F. Falchs, Joseph A. John¬
son, and Emmett A. Larkin, VicePresidents
taries.
Assistant
and
Mr. Apy has been
Secre¬
active
as
individual floor broker in New
an
York.
The
other
with
associated
officers
A.
G.
all
are
Becker
&
Co., Inc.
May, Borg Admits
Borg
May,
61
Company,
&
Broadway, New York City, mem¬
bers of the American Stock Ex¬
change,
have
admitted
Herbert
Green, Jr. to partnership in their
firm.
A. E. Crow
MARINE SALVAGE
&
DERRICK
HEAVY
FT.
HOIST DEPARTMENTS
E.
WORTH,
Crow
is
General Offices
New York, New York
Ocean
Coing Salvage
Vessels Based
New York,
Floating Derricks
Based
business
conducting
from
a
offices
securi¬
in
the
Bulk Barnett Building.
at:
New York
Key West. Florida
Kingston, Jamaica. B.W.I.
250-Ton Lift
ties
Opens
Tex.—Archibald
up to
Capacity
at:
New York, New York
Lewellen-Bybee Branch
LAKE
SALT
Lewellen-Bybee
CITY,
branch
Judge Building.
opened
a
Utah—
Company
office
in
has
the
Norfolk, Virginia
With
Merritt Chapman & Scott
_
CORPORATION
260 Madison Avenue
•
New York
LAUDERDALE.
FORT
George
Founded In 1860
,
H.
affiliated
16, N. Y.
Thackara, Grant
(Special to The Financial Chconicle)
and
Fla.—
Patterson has become
with Thackara,
Grart
Company, 410 Carolina Ave.
The Commercial and Financial Chronicle
(1162)
04
Continued from page
Today, most people believe that
16
the economy
is bulwarked against
the kind of depression we had in
What's Ahead in Color Television
the
is
vUWvVAvii
production and conconsumption—it is people,
too.
Our people are governed under
laws that set free their minds to
dare
think
of
any
future for
themselves
and
their
children.
than
vi-lCtAA
XllUi. C
more
people are employed in an
in which the rewards
spectacular for efforts they
may make.
Our people are living in a society where one does
not find cockney mililonaires, or
Our
economy
are
,
gulf between groups, that is
now
being bridged.
People
any
not
well
the
Hence,
.
here, the
are
limitless.
and
drive of
effort
for
.
.
And
things.
as
rewards
dreams
ideas and
for
work
as
Incentive
energy
limitless.
all of
us
Color
Television
are
Plateau
Economic
Higher
a
I
to
warding for the money spent than
you
this reminder.
selling is impelling.
The possibilities of bringing to the public
information about the present and
future of the very romantic businesses that most of us are in, are
inspiring.
As
color television
begins to take
us
around
groups.
t
*
1
in
to
my
American
dream begin
to
true.
Another part of the
the
come
that
has
been under estimated is the impact of the incentive system on
society
itself.
This
impact
is
about to be quadrupled through
revolutionary
force
It will take peo-
wide> wide world
p|e 0Ld jnto
romance
the
of
cascades
Everglades
the
glitter
and
the
enlighten
views
of
our
people. Suddenly this great mass,
us, will see a clearer picture of
what can be ours, and soon. Just
as the immigrant worked
to give
his children
chance to
a
in social status,
move
up
as
Sierras,
the
Florida,
of
prosperous
citizen who works, too,
has
farmer
banized
just as the
socially urand television
become
radio
by
communications
and
generally,
emerged
from the protective disciplines of
the group—lifted heads, seen the
incentives,
gone
to
work
to
just
each
as
achieve
now, with
the
groups
gain-so
television
or
co
and
has
group
all
SSJES
.
of
th
far
atomic
handle
,
countries
trouble
that
the
is
individual
have
economic
about
comes
the hopelessness of
incentives.
work
of
inefficiency of the
which
largely from
his
characteristic
We
payload
see
countries— too
many
feather-bedoing,
socialist
the
in
fear
make-
the
employees,
of
new
h
uictnrv
confidence or fear, is and will be
done
by
the mass media, and
particularly by color television,
Economic communication can
—pictures that are inducements
for people to want the
same
things, products and experiences,
for themselves. Any product
affect our political complexion.
Consider
the
American
leftwing groups. Although there are
which is visibly enjoyed is in itself an advertisement for itself,
even
Socialists
some
and
there,
United
States
here
the picture
in
is
different
utterly
the
that
from
The greatest example of course is
the annually-styled
automobile,
which
hits
the
road and is its
own ad.
Not that it doesn't need
conventional and unconventional
nY
those
f.
fJlir
,,rLte
lo
m
th
inequities
of
much
so
nroductive
with
id
world
new
have
lutlonaries
them
We
been
revo-
£orces
against
that
olitBe_either
a
and
freedom
for
al
and
serve
now
that thev will side with
'
•
are
of
he-
is
which
svstems have
,
societies
if
Thk
aee_0id
=
do
t
a;mjnich
th
ht
change.
force
If
conserva-
w.„i
wealth
with
forces
of
the
few
.
and
,
the
the
be the whole
our
progressive
the converts
fascism
red
and
.
of
some
the world,
ugly
thought
and
Across
in
the
past,
focus comes this flood
our
and Partlcularly by the advertis- operate a
lng a§encies who stand at the holds the
will
converts
be
to
us
earth.
program
picture
schedule that
of the future
centJal i!°^rols ln tl}e consumer before America and keeps all ingoods Iields> we sha11 see a centives sharpened. We have the
greater and greater share of all support of the consumer products.
^"adtlrtisi^s'Lfenditu"^ t
'wfth
w^Tl
n/nnle
the
see
In Detroit' where the heavy
goods field is 80 important, and
where advertising has never been
rrs'tsrvri'siis
-
g0'5
"
«S£Q<1U''%'KuSI" of
"frp™
j,
that
nrenare
'reeentinn
hrnad
a
appeal' slrongly
l°r me 1°
to non-
consumer
goods companies to
gear their marketing thinking
^ow'sehanees hinrod into this fast"m°ving tomorrow,
°ndf°Veir d^tribSionbv The heavy goods suPPuers have a
ucts
is
major stake in the economy as it
wllJ come to be'I£ the suPPlier who
sel.ls to.other manufacturers delefates £IS whole future to the in~
formation job done by the last
picture with its major
^dScl"adv^i^"
methods
new
Under
noloev
the
we
gloriole
automation
of
tech
the
know
we
can
AmericanProductive
of
economy
of
imDact
now
forecast the
H°wever' that is a complicated a
^0g^,S0deTe„sTse1fetveaSs
Because of the knowledge
and concepts. And a desire to ad- paign is one part of the mosaic
vance as fast as possible.
but is the only part you can conAs this is grasPed by more cf tro1 fully'
the manaSers of our economy,
We in television can generally
cliange in our own and
countries,
sharing
our
other
can
trons.
for
know-how
t0
represent this vital
we
whose slaves are metal and elec- said
we
rhanres
thp
fhon
^uae
Kind s"aonWWeCsUee tlTpsy"-
And
tomorrow
it
h^we^i-fd^ ^1s°^I^^a^
Foi-
intellectuals
crying
for
less
™dia
unon
its
incentives
and of its incentives UP°"
its'
zeaiously
Kife ideals"
^
apartness
kind
of
to
make
spirit
As
pi
of
to
get
aside, I insert here that
production gives what the
chooses.
i
•
books,
scale
first.
It
tions
chooses
instead
>
P1
it
is
to
ever
he
.
our
be
more
.
reflects
which
in
If
bathrooms
for
spend
.
,
his
,
priority
bathrooms
job
sure
m
communica-
that
mature
in
are
be
do
not
.most
their
and
belief
do
the
right
rewarding
money
in
and
affirmativp
an
schedule
that
in creating a vigorous public
ceptance
or
the
advance
rnake
DOrtant
We
their
or
decision
toward
tuwaiu
move
ilikj v c
an
dii
to
buv
economy
homes
new
What
and
new
will
merit of the American dream
the
major
demand
NBC
to
that
cepts
courage
allow
and
advertisers
more
real
enough—foreign
market
indices of
of
things
But
on.
to
buy
for
affairs,
the
the
products,
the economy, the state
in
the
what
Washington,
individual
and
when
and
so
decision
is
still
television.
steps
ing
of the equal man and the freedom
flow
of choice.
not.
are
put together in march-
order,
of
have
an
consumption
or
you
upward
you
do
We
believe
more
these
We have tried to develop
selling-in-depth
techniques
for
manufacturers. To the ever-growsophisticated
and
urban
ing
masses
ers
of
and
business
the
workers and farm-
our
professionals,
sense
to
it
relate
is
good
product
comPany that makes it' and
who
it, to the ideals
that inspire it, to the research that
stands behind it, and the organimen
zation
that
pa«.t;n«
run
serves
it.
To
do
this
can
and
you
and
through
J
t
Cpte
? uCan SUP"
vTanU"
ppnniS fn afo °Kr"
p
/
public
^
,
i
alternatives
iv
•
how they
product
for
New
into
Flowing-
Advertising
economy.
Meanwhile, with
your support,
trying to increase the in¬
are
we
formation
shows
great,
ones
all
make
the
and
our
the
the
better,
ones
greater.
in
content
NBC—to
at
different
in¬
good
great
ones
We recognize that in the
grand design of the American fu¬
role is to try to make the
rewarding aspects of leis¬
ture,
or
more
ure-time
activities
better
known.
We must do this within the scope
of our own business, as a mass
creator of information and
tertainment
people.
force
a
I
use.
its
work
for
am
en¬
the
ef¬
the entire
serve
segments,
to
viewers.
make
force for good,
a
of
all
indiscriminate
NBC
at
medium
as
for
completely
all
and
just
We
be
must
we
audience
not
services
To
fective,
our
well
as
all-family, all-set
sure
the NBC
see
you
in
English; The Wise Old
Men; "Victory at Sea; "Meet the
Press," "Youth Wants to Know"
opera
and
others.
many
do
not
on
an
notice
You
that
all
probably
shows,
basis, frequently
broaden knowledge, introduce cul¬
ture,
the
all
...
perience of
in
our
insert
expose
artists
great
serious
enrich
to
the
ex¬
viewers. Our aims
our
programming
high.
are
Programs to Sell Goods
For most of
sell
to
are
keting
the
you,
have
your
problems.
build
own
We
medium
our
programs
We know that
goods.
each of you
mar¬
hope
to
flexibly
so
that you will be able to use tele¬
vision to meet your requirements.
building
are
buy what
want you
credible
pared
with
built
est
a
of
forerunner
companies really
business, and the small¬
our
advertiser
really
period
program
had
to keep his time.
ruled
adver¬
Worse, it made the
medium
advertisers.
inefficient
For
ing problems of
there
are
than
many
market¬
companies,
key
frequency.
any
of
use
for
the
many
many
weekly
Indeed,
in
use
That pat¬
little
the
out
to
week all
every
year
the
you
Thus our in¬
values, com¬
radio
few
that
so
need, not what
to buy.
our
a
it
you
range
—wherein
more
needs
that
company
de¬
,
stake
° uthe ^onsur"~
,
on
organization will prefer
5
trade
enthusiasm
and
a
plan that creates this, rather than
the
u
J j?a
.u
*
+
your
dealer
^enx
a,?~
mdustry really
u"d^r^ands how complex and
.ma^er °r gaining that
aiJLs,ip
make
pends
Monev
™
1
Hmitr
or,
of
money
to
for the time
the
expanding
'compete
American
will
oney
_
customers
category
and
associa¬
your consumer
™
p
Basis
trade
your
tions, and through
tern
Tv[eni
S^oney ^ey
have> must still select from among
get
that
cars
have
I will guess for
You will enter advertising,
will work by yourself,
you.
tiser.
Pnn
en-
to
times.
are
into
rail
faPt1Jrpr
have been trying
develop selling con-
would
in-
wisidu
tli
w
nort
we
influences
psychology
for,
For
pnmot;Vp
many
American
industry needs
than
product
selling
in
the
ac-
lyZ
_nnn
Therefore,
at
matter
stress in ^vertising, the en0Ver the en1
?t
galvanize this
great force? It is purely a psychological matter.
Some of the
on
role
Television
" "
in
for deferrable purchases
including the construction of new
and
Get into
j 11
w[\\
play
Encouraging- More Advertisers to
90% of all production
or
will
of, even
changes.
these
+Wit+ho^ t?e first step' and when a11 the t0 the
truth
absolute
of
the
as
which 80
things actual
time,
time
the
decision, to
bu1/ing as im-
purchase
vision
category.
or
stance, suppliers to motor
nor
pie> know the need to hasten the
r0ads.
they first get it, is a complaint by people with very little
sense
of
equity, or history, or
real
aaeressive
information
can have and the incentives that
await them. We think color tele-
piants
when
►
in
Product
1"
no
potential,
never
you
been advertisers?
we
system enough.,, For
tl/happy fhan'ges that ^Kfre^rtn'cmifhct'lTth'anott^
8™ups for
economy today most purchases
are
deferrable, as against immediate.
You in Detroit, of all peo-
grows
pnorny scale, and to be sure
that books for instance, are
high
on his list.
But the complaint that
with
that
all
Uays for the people the lRe they
determining
his
people
remember
us
nreiiare
To
our
an
individual
to
Let
machinery
decision to buy, to create pressure
order
in
well.
as
^
Many Purchases Are Defferable
gen-
things of the flesh and the
more
our
in
or
^vn®lesJme
lead them
'
could
work
more
some
status
or
what they lack
It!™ Z-110611 ^ efS
incentives that
do
own
in
up
sublimation
condition
to
their®
bv
growth
your
though
even
can
spwTand" wS,gS0atSerm0grre0M°ps
defending
protect
We
ssssr ^zs^sz
and
affect
home
nishings be bought, the new kit¬
system
[r,hr=oiS, sszsr
cardinal
cannot
this
will
How
travel.
to
tured
sPread by this new media, our of information and out of it all,
society has an incredibly uniform there emerges, the motivations
generously desire
to advance its present that make us buy o/ not buy, act
h*
in ou^.
economic and political patterns or delay. Your advertising cam-
if
p
in-
if'
But
war
' '
t
nhvin-islv
it
economic
our
,,
number of
A
ecoromv
pmiM\inn
Piudfng
.
places.
„„r]a
One
it
help but be a tremendous impetus
incentive
the
CAU V vi
to the
It will
and
Broadway,
of
fuintfo
the work-
a
just
ingman has become
world,
the
advertising, X UU Alv/V
I do not
and
CAxXKA
abroad. Men who elsewhere advertising support. But the manmight have been Socialists want ufacturer must consider how each
will lift business to another eeogive people a new sight of a this country to move ahead and of us, including himself, works as a
nomic plateau is in the making
present that they never saw be- build an ever higher production, human communications machine,
and
that
the
dynamite for its f0re outlined to them in color a broader-shar.ed 'wealth, a 4pew We have moving across our focus
lifting is with us now. It is color television.
It
will
show
them leisure, and a'miracle societyf*O&&0l consciousnessJthis titanic flood
television.
It
will
sharpen the what can be, and what is.
new things to make life easier, o.f .sfmse; .(lata, from what we see
incentives, alert the minds, en^ow ^ ig inevitable that this and more comfortable, and more'and hear and read, what we relarge the spirits, build up the mutation in vision and ambition fun, and more rewarding ... that call consciously and unconhopes, harden the determination,
b
f0nowed bv an upthrust^can make every man an Athenian sciously, what we have done and
an
give
me
.
thing,
that
Let
expenditures?
Or
even
automobiles, if the lure is abroad?
Will the new rug and new fur¬
considering
system
"J kJvV'141
others.
to the point where they believe that most businessmen chen, the new home, the new car,
would not permit severe degrada- quite relate the various factors as the new clothes? Which?
tion in their present positions. do we who are in the advertising
Are
you
gentlemen
whose
Nor is there any reason to be- business itself. Advertising is to
companies' vitality will depend
lieve that the managers^#! our ge^ the potential customer to stop on the end
sale, going also to de¬
0f revolution for the average or economy,
like ourselves; would what he's doing and think about
pend on smoebody else making
median
man
which
has
both permit any major failing of the your product or service. This is that
en<£ sale for you and in com¬
plagued and electrified the world economy.
done in paid ads, but also in
petition
where
you
could
get
ever since.
One part of the revoThe
transfer
of
information many other ways. All the mass
badly hurt? Or are you going to
lutionary
force
has
been
the about the strength of the econ- media show pictures of our so- enter consumer
advertising to
mass production which has made
omy, which sets the climate for ciety using products and services
I know, as surely as I
know anyexplosion which
longer
no
are
disciplined,
stratified
Rather, they have ma'
O
main theme,
which is that early America ereated a philosophic and political
basis for the great revolution of
all time, and set up the pattern
back
But
—to
speak of this to you because
society
our
with skill requires intelligence,
But the need for this broad gauge,
above-and - beyond-the-product
simple,
System
|
color television.
Lift Us
Will
no
in
the
and
Television
Color
is
system
incentive
The
„
if
longer have the kind of
society that we had in 1932. As
reported earlier, the groups with-
Public?
For Advertisers and the
thirties. "Certainty this
only for the fact that
early
true,
we
cated.
Thursday, March 10, 1954
...
,
frequency that used to be the
rule
of
ers.
Thus
thumb
arrangements
how
cost
of
advertis¬
most
part of our flexible
as
we
ads
not
onlv
sell
"Today" and
"Home" and "Tonight" for single
insertions on important dates to
on
.
sdare 1S
terms of using the
adroitly), then we
*° see a vast new flow
mass
are
little
or
also
in
big
advertisers,
but
spectaculars, both singly
lots, for organizations who
money
coming
into
advertis-
ing, and all of it aimed at telling
th
t
f
h_* certain kinds or
.
categories of products
certain
products
are
as
well as
more
re¬
want values
beyond product
etition
of
we
sell
and
circulation.
and
No
rep¬
one
could read the mail that the Olds-
mobile people sent me on "Babes
in
Toyland" without realizing the
tremendous
extra
values
and
Number 5410...The Commercial and, Financial Chronicle
Volume 181
depth of impact that this kind of
advertising association means to
and to a network far
beyond circulation value. But as
a
FHLB Notes
company,
The Federal Home Loan
on
March 3 made
the
by
Banks
The notes
eral
of two
Home
notes
investment for savings
all television.
ries D-1955
As
of
battle
NBC
at
to
followed
have
who
you
interest
of
matter
a
those
to
keep our
programming schedule fresh and
vital (and to change the old pat¬
our
the
the
of
terns
old
same
old
times
time)
all
the
been
in
at
NBC
have
shows
same
the
this latest
In
has
the
and
the
all
Spectaculars
major listings.
Nielsen, Oldsmobile
highest
aggregating $141,000,000
principal amount. The issues com¬
prise (a)
1955
and
$81,000,000 of 1.80%
and
(b)
se¬
notes dated March
15,
maturing Aug. 15, 1955
$60,000,000 of 1.90% se¬
ries E-1955 notes dated March
1955
and due Nov.
issues
are
priced
100%.
The
group
the
assistance
of
RCA is
that
have
been
television
on
for
144%
refund
series
notes
the
retirement of
March 15, the two
constitute
will
Educational
the
new
season
on
p.m.
in
Fidelity
Company.
Now With Goodbody Co.
matur¬
joined
Co.,
He
have
&
Trust
of
Raffel
the
Club
speaker
has
oc¬
Club
ST.
B.
are
has
Beach
for
With A. G. Edwards Sons
Liebig
A. G. Edwards &
Assistant
has
chosen
as
(Special to The Financial Chronicle)
of
Sales, of the Rohm &
Company, Philadelphia, Pa.
Woodman
his
BELLEVILLE,
is
now
111. —Allen
connected
ninth
In
in
10th
Homes
place is Martha Raye
place, in the Nielsen
reached
column, are Mar¬
Lewis, both shows irreg¬
ularly scheduled. In other words,
tin
it
and
is
not
wish
true
to
that
the
see
occasionally,
shows
been
air.
the
Our
top
in
in
the
on
the
for
40
over
most
NBC have
shows
average
taculars is
fact
on
10
Spec¬
the Nielsen
ratings; and they have had double
the
audience
nighttime
This
is
the
of
average
television
program.
digression,
a
extremely
important for the future of tele¬
vision; and. I know of interest to
of
some
here
friends
my
today.
It
refreshment
schedule
in
with
other
is
most
commercially
that
and
keep
we
lesser
the
work
the
time,
.
the
.
the
to
as
.
light
attractions
coming
well
set,
who
of
give
can
see
television
successful
wonderful
them
vision
I
that
the
talent
fields
viewers
that
means
of
»—Commercial Credit Reports—i
scheduled
shows
and
scheduled
so
in
people do not
to
tele¬
five year
same
dends of
$55,931,601
Manufacturing Companies from current
retained
$51,371,781 in the business. Capital
opera¬
tions, after payment of taxes, exceeded 24 milli¬
dollars—the largest in Commercial Credit's
on
history. The volume of receivables acquired by
the
Finance
Companies and the relative out¬
standings thereof show
a
result of the
a
reduction from 1953
as
Company's policy of refining its
motor retail and wholesale
financing of
cars
and
funds of the
lars and
es,
during 1954. However, dur¬
ing 1954 the Company made
crease
and
a
substantial in¬
in financing cars of other manufacturers
thereby has obtained
a greater
diversifica¬
tion in its motor financing volume.
of
408,245
shares outstanding
more
cember 31, 1954, as
on
common
and
December 31, 1954, was $35.35.
operations,
were
expens¬
use
of
our
facilities
by manufacturers, wholesalers, retailers
consumers
and
the
continued
support of
stockholders, the institutions and others
who have
grateful
provided
for
the
operating funds. We
our
intelligent
are
and
cooperation
Commercial
enthusiasm of the officers and employees in the
handling of
their Company's operations. The
sidiaries appears very
Credit Company
Company and its sub¬
BALTIMORE
promising.
De¬
2, MARYLAND
Offering services through
E. C. Wareheim, Chairman of the Board
subsidiaries in
shares has
A. E. Duncan, Founder Chairman
increased $12.85 during the past five years and
on
stock and
80 million dollars
appreciate the sustained
made
compared to December 31,
1953. The book value of the
over
outlook for 1955 for the
Net income per common share was $4.86 with
some
common
credit losses and earnings.
We
our
manufacturers
its
Company exceed 175 million dol¬
reserves
also from the reduction in sales of certain motor
car
on
available for credit to future
more
than 400
offices in the United States and
E. L. Grimes, President
During this
the Dominion of Canada
fr
satisfy the
as
period the Company paid divi¬
CONSOLIDATED net income of the Finance
Companies, Insurance Companies and
requirements of the heavy
viewers.
But
to
get
back
the
to
Spec¬
*•»*****++»**
taculars and their marketing uses,
the Sunbeam Corporation uses its
Sunday
Spectaculars
dealer
interest
in
to
sales take place.
con¬
And Bob
trade-mark
brands,
effectively.
sells them very
be
commercial
that
sure
■w}ith the
anything
that
for
do
we
the
add
explanation
an
other.
on
ACCOUNTS PAYABLE AND
Motor and other retail.
ACCRUALS
...,.
Motor and other wholesale
.
things
suddenly
screen
are
RESERVES
LONG-TERM NOTES
with
SUBORDINATED LONG-
Less: unearned income
what¬
reserve
for losses
TERM
....
your
Total receivables, net
one
want
Common stock.,.
Capital surplus.,
to
why color
;
NOTES
NET WORTH:
.
OTHER CURRENT ASSETS..
Earned surplus...
FIXED AND OTHER ASSETS
it shows
Total net worth
DEFERRED CHARGES
The
are.
reveals
reality.
having reality
through a smoked
used
so
filtered
CANADIAN
Commercial and other
receivables
the
they
as
AND
INCOME TAXES...,
today
or
I
Color is great because
you
SHORT TERM..
RECEIVABLES:
to
great in television.
so
We
is
you
And
*****
NOTES PAYABLE,
SECURITIES
U.S.
walks
that
and
within
is
and
CASH AND MARKETABLE
there is
in selling
do
problems,
can
solve
your
budget,
you
that
can
television,
ever
of
feeling
you
mine
meeting
our
cannot
we
color
of
none
from
away
31, 1954 and 1953
LIABILITIES
Direct loan receivables.
This
of December
fourth-
Hope for General Foods, work¬
ing on an occasional basis, sells
straight
as
ASSETS
build
their
quarter, when most of their
sumer
Condensed consolidated balance sheets
out
to
glass (by photographs, movies and
TV
in
black and white),
forget
how
great
that
reality
A few facts
we
as
of December 31,1954 and 1953
***********"**********************^
looks.
With color, you see what is there.
Color even performs the spatial*
relationship job frequently attrib¬
uted to 3-D.
It enables you to see
depth, because it shows
would
you
see
is
why
This
should
not
if
Gross insurance
television
limited
Color
television
Net sales manufacturing companies
by
Gross income—finance companies
color
in print.
or
shows
what
you
Gross
premiums, etc.
planning
we
construct
a
113 584 595
49 718
572
110 709 890
on
45 391
believe that
to
we must
do
721
52
153
574
21
income.
948
28
305
583
13 949 782
5 454 085
3 063 062
.,
14 492 050
7 215 929
Insurance companies
3 901
surplus
$24 228 773
Total expenses
Net income
$4.86
reserves,
all of
In
in
us
our
society
our
as
that
vital
business,
a
as
acts
role
in
as
for
any.
most
of
Interest and discount charges...
Provision for past
we
cannot
market.
We
really
must
plan
♦The number of shares
We must
determine
lieve
mission to
our
what
we
it.
be¬
be, and then
attempt to accomplish it
3.07
outstanding at December 31, 1954 increased
follow
lead
32.35
3.31
Interest and discount chargestimes earned
408,245 compared to December 31, 1953.
yours,
our
2.40
35.35
.
service benefits
under amended retirement
6.18
2.60
etc.
Book value.
within
$5.21
4.24
on
income
and
$23 847 991
share*
Dividends
job
a
856
Total credited to
U.S. and Canadian tax
Gross income
162
Net income of
Common stock per
television
our
medium
Canadian taxes.
earned
profit—manufacturing
companies
Investment and sundry income..
in
Net income before U.S. and
Manufacturing companies
is there.
Generally,
$3 111 621 259
Less U.S. and Canadian taxes
33 289 952
to reinsurance
Earned insurance
experience in movies
$2 467 968 945
premiums, prior
Finance companies
color
be
there.
were
you
what
you
Gross finance receivables acquired
Copies of our 43rd Annual Report available
upon
request
..
G.
with
Sons, 26A Public
Square.
years.
and
connectec
Investments, 134
Drive, North.
Plastic
Dr.
invited.
become
Peninsular
Haas
& Co.
busi¬
Investment
PETERSBURG, Fla.—Philip
Stapp
casion will be Dr. John F. Wood¬
Technical
the
of the*
meetings
and
an¬
the
of
Northeast First Avenue.
formerly with H. Hentz
14
was
the
Our
With Peninsular Inv.
Company, President of the In¬
Women's
these
friends
man,
of
of
of
past, because
interest
aroused,
Wolf has
Goodbody &
staff
One
(Special to The Financial Chronicle)
with
Schnetke
the
Women's
10, 1955 at
Room of
Philadelphia
Helen
nounced
Fla.—Irving
the
—
Materials
associates
ness
the Board
the
entire
March
in
popular
Meeting of the 1954-
1955
5:15
the
Mrs.
MIAMI,
$119,000,000 of
B-1955
laws
vestment
ing March 15, 1955, and to provide
funds for making additional credit
10th—way ahead of shows
issues
offering will
be
to
the
delphia, under the sponsorship of
the Philadelphia-Baltimore Stock
Exchange will hold their fourth
(Special to The Financial Chronicle)
rating, and the
Monday Spectacular for Ford and
used
under
vestment Women's Club of Phila¬
and
states.
and
of securities dealers.
Proceeds from the
banks, in¬
trustees
New
As
PHILADELPHIA, Pa.—The In¬
note indebtedness of the Banks.
national
a
Women to Hear
legal
are
Upon completion of the financ¬
ing
offering is being made by Everett
Smith, fiscal agent of the Banks
with
fiduciaries
many
notes due
Both
15, 1955.
at
15,
other
and
companies,
surance
of
Banks
Loan
"Plexiglas
Great
35
Time."
obligations of the 11 Federal
issues of non-callable consolidated
topic
Phila. Investment
the joint and sev¬
are
circulation, in the
latest Nielsen ratings, the Oldsmobile spectacular d i s p 1 a c e d
"Lucy" as the top rated show in
capstone, in
a
their
to
member institutions.
Banks
offer
an
available
Market
on
(1163)
36
The Commercial and Financial Chronicle
(1164)
Thursday, March 10, 1954
...
\
LETTER TO THE EDITOR:
kind
same
the
84th
And
Shull Argues
Connecticut
Stale
for Gold Standard
Chairman
of
Standard
Gold
the
replying to views expressed by Sidney G. Chubb,
there
is
no
League,
says
"demonstration,"
Chronicle:
The
letter
by
G.
Sidney
Mr.
Chubb, of Toronto, in your issue
Feb. 17, presents considerable
opposition to views expressed by
of
in
me,
the
'Chronicle,"
"WhalCon-
on
Means."
dealt
this
likewise
not
has
gold stand¬
a
within the
range of possibility—almost any¬
thing is possible—but that of prob¬
only
appears
well."
as
Here
are
my
As
to
"possibility,"
several years,
my
cucing
the
do
his
U.
two,
S.
and favorable action
in
Congress; and there
bills
other
ing
that
$25,000
statesmen; and it
strongly argue for defeat
in
would
of their request for a
$10,000 boost
salaries.
model
SHULL '
G.
Continued
gold
Connecticut State Chairman,
the
G. Shull
Frederick
simplicity."
that,
With
New Haven 15,
the
Feb.
and
"redeemability"—are
"simple" enough to be readily
derstood
the
in
common
un¬
of
game
poker, they certainly are "simple"
enough when applied to a nation's
Conn.
currency.
Mr.
the
continues:
Chubb
gold
nor
in
operates
"Neither
other
standard
any
It
vacuum.
a
is
instrument which affects the lives
and
livelihoods
not
an
just clear
—I fully agree
"affects
ard
of
While
all."
I
what he
to
as
by "operating in
means
electronic
engineers. Instead
cific
definite
vacuum"
a
that the gold stand¬
lives
the
liveli¬
and
hoods of all."
than the
in which
one
requires for its
proper
live.
we
It
have
tried
electronics
participates
field
every
of
15
is
years
illustrated
may
any
its
and
associated
They state that in 1940 the in¬
these
points
must
I
in
mately
part company with Mr. Chubb, and
times
for these
the
From 1837 until
reasons:
1933
we
i-or
"perfect
had
neither
trade"
"free
competition";
and
yet, with minor exceptions, we
operated under the gold standard
v.ith
the
firmly
"value"
fixed
at
the
of
$20/37
of fine
gold, and
L
d.dn't "do
until
under¬
that the United States
pretty well" from
1837
1933?
Mr.
Chubb
question:
that
"Is
the
services
volve
it
price
The
specific
desirable
even
of
should
about
one?"
this
asks
all
be
the
goods
made
fixed
and
to
re¬
price
is
answer
of
positive
a
Yes, and that "one" commodity is
Gold. In support of that
"Yes," I
cite
the
to
closer
of steel
1908,
Andrew
Car¬
the
gold standard
the North Star, saying that the
to
output, and well ahead o*
Babson
projects
value
of
revenues.
industry
an
and
to
electronics
as
into
moves
of
concept
every
helped
that "to object to gold as the
andard of value,
therefore, is as
we
were
refuse
almost
tion
is
concentrated
in
produc¬
the
in
Los
A very comprehen¬
area.
report
dustry
that
the electronics
on
the
Los
Angeles
in¬
area
was
In
the
that
North
call
the
Star."
letter,
Mr. Chubb asks
to "demonstrate that return to
either
the
srandard
veil
bullion
would
under
full
or
work
present
1953 for this
year
alone amounted to $750,000,-
area
can't
very
electronics
well
without
gold
product
distribution
conceivable
and
xt
mes»d=,es.
effective sales
the
commodity
houses—and
the
to
public
of
type of
irom
—
don't
the
new mo¬
pictures.
of
time
to
dwell
want
conventional
vision-—that
is
limitations
too
much
talk
about
mentioning
future
reasonably
conditions."
V
Command
battle sector.
entertainment,
most
(xcuoying the strongest monetary
position among the nations of the
American
are
in
areas
in
medium
education
has
and
penetrated
the country.
as
re¬
ceived
in the home.
Technically,
interesting advances will be made.
One
that
is
motely
automatically
use,
with
better
than
households
The
average
70%
owning
of
re¬
television
or
action
is
not
being
and
di¬
ture
will, I hope,
far
too
The
the
of
is
way
a
to
wrought
picture and remotely
from
One version of
tube three inches
apparently
the
tails
miniaturized
a
armchair receiver.
a
West
Coast
the
of
last month.
color
deep has
developed here
been
and
tube
some
released
were
And, of
de¬
there
course,
television.
like
looks
before
and
there
of
sale
problems
few
a
is
more
production
receivers.
relative
tube and
years
mass
color
to
the
Cost
picture
the entire receiver have
got to be brought into line
sets
can
be
priced
so
no
that
more
than $200 over comparable black-
and-white
sets.
help
Electronics
solve
this
in
our
itself
I
and
sale
of
color
will
sets
become
a
applications of elec¬
today a major factor
the industy's dollar volume of
in
sales.
are
Also,
complex
uses
many
of
"The level
tion
ot industrial produc¬
rise better than 40% in
may
of
the
electronic
more
con¬
coming decade.
A continued,
shortening of the
moderate,
is
inevitable.
Con¬
sumer
spending is expected to
50%.
And
place
bet
my
rise
along witii Ike,
so,
I
decaae of
on a great
expansion and prosperity.'
We
can't
such
and
turning
achieve
level of
a
and
accept
tnese
goals
expansion by
backs
our
on technological
Instead, we must
improvement.
adopt every
de¬
new
hours
pro¬
required lor tnat
pro¬
duction.
I
be
can
fields
that
vital
hope for
perfection
of
the
in
calculating and control
mechanisms.
Every
of destruction
by
to
that has
the
in
lowed
don't
want
to
particularly in this talk
spend mucn time
the
my
far
off
devices will
certain
attack.
atomic
against
In
not
is
almost
an
gain.
the
time
pro¬
defense
there¬
I'd
fore like to repeat, that our pres¬
ent
technological
known
Let
should
era
next examine
us
be
the "Electronic Age."
as
the grow¬
ing trend toward automation in
factories, processing plants, and
in office procedures.
is
Automation,
further extension
a
of the work
more
to do
by human beings.
even
performed
now
Electronic de¬
vices supplant many of the human
beings who previously had regu¬
production
processes
or
.
handled materials. We
the
to
factory.
so-called
fact,
In
processing plants
100%
entire
devices
work
chemical
today almost
Electronic
the
of
most
through
today
the
regulate
clerical operations could
inated
or
operation.
processing
office
coming
automatic
many
are
automatic.
pneumatic
are
In
routine
be elim¬
electronic
computers and apparatus.
The
that
fact
with
combination
electronics
going to take
over
man's work is
not
ing
even
a
more
very
in
nomic and social
well-being. How¬
nomic
I'd
has produced the
Age" will not find
that
to
just
average
strips
like
to
and
eco¬
make one ob¬
line.
The
American iamily far cut-
the world in
material goods
spendable income, and this
the
rest
direct
America
nation
of
of
result of
the
out-produces
the
in
world
specific
product.
As
fact
any
in
a
present automation and
efficient
use
America's
because
of
workers
they
all
we
genius
put the electron
presently
operations.
undeveloped
Supergermicidal
dishwashers,
lamps,
light
amplification,
the
purification of sea water, atmos¬
pheric control, electronically
con¬
trolled space travel, television re¬
other
planets,
the
preservation of foods
from
ports
indefinite
—these
but
are
few of the
a
sibilities ahead of
Of
specific
siderable
geles
interest
television
use.
total
sources
is
use
film
to
prouuetion
of
Coast
West
volume
An¬
motion pic¬
According to
of
tures and television.
the
con¬
a
Los
is the present growing
area
reliable
to
the
in
group
interdependence
on
pos¬
us.
film
about
for
equal
made for
Dollar-wise it does
in
theater
not
equal
film
theater
production, but last
year it is estimated that $100,000,000 was spent in Hollywood alone
for the
produoion of film for tele¬
figure will grow—not
presently estimated
about
70% of present TV
vision. This
decrease. It is
that
programming is
on
film. Again, I
increase
in
the
see
an
future
of
film
programming on television
against live productions. Then
as
there
is
further
the
is reflected in the
an
interdepend¬
industries which
the two
of
ence
of television
use
advertising medium to ac¬
tively promote and sell box office
studio film productions.
is
another field of
that we should
yet
interdependence
I'd like to quote from a
examine.
statement
recent
made
tion
television
for
gram.
"To
tion
his
of
produc¬
the
recent
of Light"
Jubilee
"Diamond
O.
David
by
after
Selznick
pro¬
it is inevitable that mo¬
me
production
picture
be
must
re-tooled from top to bottom; and
this
along
possession
and in
a
social
its
readjustments.
servation
is
eco¬
I can't believe that the in¬
genuity
the
our
will
think
to work in thousands of
There
have
ever,
America
of
for major
surpris¬
automation will
on
inventive
is
Important,
effect that such
the
is
that
of
announcement.
however,
realize
as
machine
trie
I
per¬
past has been fol¬
defensive appara¬
equalize
limited.
the
tne
on
benefits, and
consumer
others
sonic
been
some
when electronic
vide
weapon
new
that
other
tsrms
of
man-hours needed to produce any
Military
tronics
radically change their habits.
man
mankind
television
reality.
un¬
be¬
almost
electronic
"Electronic
devel¬
years
less the young people of America
duction and that will decrease the
and
nuclear
other
one
see
solutions
its
ten
an
pop¬
velopment that will increase
deter others from aggression.
increased
own
next
our
extensive
will
electronic
reality—but
a
in the
ulation
see
electronic
economic
manufacturing industry. Color for
American home will
become
increase of 30-million in
will
we
We shall
come
never
massive
is, there
to believe
this goal.
exceed
possible electronic gadgets of the
future—many of whicn will have
the
automation
control
this program
as
reason
fu¬
by
and
problem—through
of
"Bold
electronically con¬
trolled weapons. Certainly, it will
be
America's
leadership in the
closer
controlled
flation but by solid growth.
the
destruction that
automatic
the wall
a
be
weapon
of
war
re¬
lated
as
for each American family
accomplished not by in¬
from
control
almost
of
military
missile.
cause
used
firing
of
type
every
thin type of picture tube—
something that can be hung on
very
There
approximately 34,000,000 sets
ceivers.
will
We know that
machines and tools
what time the flood-gates of mass
of
it
Headquarters
of
start
communication
It
tele¬
vital tool in fu¬
a
tactics—that
war
essence,
people in the industry anticipated.
I would hesitate to predict at just
ell, it worked very successfully
from Jan. 2, 1879 to
1933; we went
t'.trough two wars, and came forth
that
in
postwar technical, social, and
cultural growth. From a
standing
our
newest
be
tele¬
of
television
I
opment has been slower than most
phenomenon
this
spotting.
knowledge
will
on
of
1946
on
electronics
seemingly in¬
compatible promotion of
tion
$3,000
—to
work-week
and
sea,
for weather
has
the nation a goal of
$500-biilion output in ten years
—an
average
rise in income of
set
but
opinion
almost every
in
the
on
Eisenhower
"Presicent
said:
the
tus
television. Television has not only
been the wonder child of the in¬
the
know
economy
lately
land—
ex¬
automobiles and toothpaste to new
use
I
We
ability to de¬
distances; its
through fog and
that it is used in
fact
even
dy¬
still
production is the West Coast.
of
its
talked
be
can
many.
see
the
through
most
every
it
and
major portion
to
America's
sales
the
for
medium
dustry—but
to
nearest of all stars to the true
scar
north,
me
to
re-
One of the most active areas in
the country in electronic research
and
if
living
been
000.
value";
spark
economy
namic,
has
trat
in
increas¬
an
Technically,
color television is here today, but
practically and economically it
A
not
are
rain;
of
awareness
advertising
panding
will
least
an
happenings to
an
billings for the
s
about
that
about radar and
fected
As
has
system revolves"; that man found
gold to be "the one (commodity)
fluctuated
re¬
medium.
prepared by your Electronics
Committee headed by Les Hoff¬
man.
It reports
total electronic
"is the nearest star to the
true north, around which the solar
of home
suits, of course, over and above
its
place
as
an
entertainment
is
living.
acceptance
ing number of citizens—these
color
letter
economics,
provide
current
on
exceeded
mass
it
why that figure won't be equalled
further
vast
military applications of
and
concepts? I believe strongly
has been a force to help
reestablish the
family group, to
help curb juvenile delinquency,
that
such
or
one-
tional
by 1970 of around $20,000,000,000. I don't see any reason
volume
sive
in
$10,000,000,007
utility revenue,
oil, and telephone
New
likened
the
to
electronics
electric
Angeles
York
that
note
and
lationships, of cultural and educa¬
two
electronic
four
use
day.
this
has
of
Because
of
following authority: Ad¬
dressing the Economic Club of
negie
twice
only
volume is close to the $11,000,000,000 of the motor vehicle
industry,
crude
Chubb
and
esting
value.
Mr.
volume
achieved
products
produced is compared with other
major industries, and it is inter¬
even
Would
in
ounce
with "redeema-
What
terms
ago.
Value
demand, (meaning free
"convertibility" of our papermoney into gold),
at that fixed
take to say
1940
that
approxi¬
This is 18
$8,800,000,000.
the
$500,000,-
and
was
dollar
an
on
lity,"
output
volume
years
about
product
1954 the total
in
of television meant to America in
medium
produced
On
fields
decade."
gross
future."
a
show the greatest growth of
major technology in the next
000
which
by
report of David L. Babson
Company. Babson says, "Elec¬
&
neither
of
in the
is
receiver
half hours per
recent
functioning
likely to exist in the immediate
endeavor.
Its almost fantastic growth
past
that
almost
in
human
dustry
is
indicate
to
free trade and perfect
competition,
exists today or
is
particular applications
example, magnetic ampli¬
tronics
Again, he says: "Shull's model
might work in a far simpler world
spe¬
experience
in
fiers,
servo-mechanisms,
digital
computers, radar fire control sys¬
tems, and so on.
I
the
rectly relay instantaneous pictures
in
that
the
practice
and
necessity
is
for
specialization.
Help-wanted advertisements for
engineers don't call merely for
an
from
our
In a recent address,
Elliott Bell, editor and publisher
of
"Business
Week"
magazine,
is good
electronics
is
3
page
cine
—for
a
as
definite peacetime and
benefits
Actual
the
and
knowledge
ness.
vision
The Look Ahead With Electronics
wanted
tre¬
a
know-how
The entire base of
is expanding.
spent for military prepared¬
sums
aircraft,
1955.
23,
civilian
individual incomes.
and
Chapel Street
I
gold
value"
application
every
for, if the two principles,of
standard — "fixity-of-
agree;
and
of
amount
result of various
to
standard
of
industry has gained
mendous
will correspondingly raise
power
guided
very
tronics
follows, therefore, in my thinking
that any developments which will
make greater use of existing man¬
for enemy detection, for mapping,
Gold Standard League.
2009
the
has the attracHon
from
and
important producers
of electronic equipment. The elec¬
ture
He
aircraft
Aircraft companies have
become
ability
with
of
missiles.
has
direct
a
tect objects at great
FREDERICK
"Shull's
says:
in
paratus
sadly lack¬
we are
are
of
pending
now
in the Congress, it will be conclu¬
sive proof
past
bill
of the
on one
bills
Standard
Gold
1 is side of the
argument.
production
of electronic ap¬
use
have been
Spahr—and fail to take prompt
intro-
gold-standard
more,
or
Lod||e (the elder); Andrew
military
been concentrated. This is
result of the
outstanding authority, Dr. Walter
Congressman Daniel
Reed has been regularly
A.
on
to
great deal of elec¬
a
military research
and development projects.
There
need
it
merely be said that, for the
quite
now
what better
asked to show that
am
the
If
Carnegie; Andrew W. Mellon; Ed¬
win
W.
Kemmerer; and today's
in
subject;
I
ard
Mr.
fully with
and
Finally, I
in military devices. Here
are
tronic
E.
sufficient
offer?
to
"the establishment of
ability
has
statements
Chubb
Mr.
isn't
answers:
vertibility
Chubb
that
if
said:
Congress
Cabot
earth—and
"probability,"
safely
should choose to
ignore
the
soundmoney views of our great leaders
of
the
past—such as Alexander
Hamilton; Daniel Webster; John
Sherman; Andrew D. White; Henry
conditions.
Editor, Commercial and Financial
be
trols
in California
respects
as
can
continue
gold
reasonably well in U. S. from 1879 to 1933
reason
why it cannot work under present
standard worked
and
this
84th
in
pending
currently
Congress.
result of
the most
existing tools,
are
paid more
produce
more.
It
the
sooner
the
Casts
better.
and
schedules
can
be
cut
drastically, while quality is simul¬
taneously improved; ard the
shooting
seemingly gigantic cost of such re¬
tooling
ingly
will
ever
be paid
can
rapid
not
does
modernized.
duction
time.
suffer
is
any
when
an
Motion
still
for in amaz¬
Employment
than it
more
industry
picture
working
in
is
pro¬
the
far as equipment
is concerned, by contrast with the
electronic cameras and
other
Dark
Ages,
superior
as
equipment
of
TV.
The
Volume 181
Number 5410... The Commercial and Financial Chronicle
(1165)
37
A
•
Screen
Producers
Guild
should,
in my
efficient
opinion, take the leadership
urging the industry to change
to equipment
which, to mention
but a tew key items, can make
possible the viewing of a scene on
would
the set, as it is
separation
in
being played, with
of two or three or
the
images
four
cameras
and
safety
pilots
back
ture
and
cameraman
and
camera
motion pic¬
a
that
so
motion
piggy¬
a
television
along side
camera
the
picture
director
technicians
would have instantaneous
viewing
on
television monitors of exactly
what was being filmed. I know
that groups here on the Coast
are
working on this problem, for its
implications in the saving of film
production time and money are
truly staggering.
A
at
picture
tions
the
suing
this
motion
vast
implica¬
industry
television
We
com¬
and
has
camera
well.
as
perfected
television
for
vigorously
are
problem
in
pur¬
our
own
Du Mont
Laboratories, and
lieve
have the problem licked.
we
When
be¬
we
complete our work, it
will be possible for motion
picture
we
companies
to
operate
with
the
technical efficiency of television
studios—reducing picture costs by
a
the
,
token—television
same
networks
a
will
be
live show let
York
Los
or
time
same
version
able
us
to
show
multaneously.
is
These
made
si¬
would
be
actual top
quality films—not teletranscriptions or kinescopes.
Through the
film
differences
between
zones
the
of
use
the
manner
United
in
this
time
in
various
parts
of
would
States
be
another
be
major
problem
by
combination
solved
There
are serious regis¬
equipment problems
today in the live televising of
color
shows.
That
problem
is
quickly licked when a motion pic¬
cameras.
tration
ture
and
works with
camera
vision
full
color
show ,is
I
our
the
tremendous
closed-circuit
vision
will
ahead.
industrial
or
play
These
role
in
include
tele¬
the
the
that
years
uses
in prisons, for national sales and
organization
meetings,
and
the
potential
projects
spent
sums
to
combat
Yet
eases.
the
research
leave
to
the
behind
future
vision
fields
in
tainment
the
the
for
thought that
uses
other than
in
are,
of
tele¬
enter¬
opinion,
my
greater than the actual on-the-air
medium.
building
Du
At
Mont
various
operation
could
complete sales force to
industry of what
a
industrial
television
has
it
this
If
accom¬
in medicine. We be¬
prodigous future.
dustry, and
lieve
can
education, in¬
commerce,
a
talk
started
with
elec¬
somehow or other
backed rather strongly into tele¬
vision, perhaps you will forgive
tronics,
me.
shoemaker
A
is
apt
to stick
It is
small
made
in
of
the
control
bile traffic—one of
plexing
that such
me
electronics has been
problems.
of
our
and Water Co.
be more important than
single advance in the world's
history. Francis Bello, in a recent
"Fortune"
in
Automatic
pilots control our ships and planes
with
posed
some
great
new
success.
highway
With
a
pro¬
program
$ 100,000,OC 0,000 much
of
more
It
water
and
company
"Man's
i
brain, which has trans¬
interested
s
dis¬
in
the
covered
the power to destroy it,
greatest enigma in modern
of
live
is
small
the
the
science.
It
of
years
world
took
last
begun
and
at
to
half
a
the
dim
a
has
under¬
its own nature. The
last 25 years have been especially
standing of
fruitful
brain,
the
of
knowledge of the
new
thanks
volume
to
a
sharp
rise
in
of
research,
neurophysiological
accomplished by swift
in
electronics
and
in¬
strumentation."
In
electronic work
our
have
we
developed
devices for storing in¬
formation
and haying it available
later times for various compu¬
at
tations.
There
electrical
indications that
are
impulses
are
the brain and
by
trical
impulses
also
cause
generated
elec¬
tnat
the brain to
perform cerain functions. Possibly
further knowledge,
with
tronic
process
able
may
to
impart
brain
which
elec¬
an
be found that
information
would
to
greatly
simplify learning processes.
A thorough knowledge of
the
ter and "raw"
cooked for
Some
few
people, however,
pasteurized.
eating
reals,"
of
water
and
swallowed
like
thought is that all vegetables
(1) Supply¬
ing vitamins, minerals, etc.; (2)
supplying much-needed bulk; and
(3) through their LIVING SEEDS
supplying that unknown and in¬
consisting
like
largely
"whole
known
okra
buds."
It
chines,
Let
sible
live
be
ce¬
illustrate:
me
to
for
not
eat
live
It
peach
a
acerola,
orange,
unless
they
tomatoes,
ries,
en,
Boiling
is
impos¬
seed,
and
apple
or
seeds,
ground; but ripe
are
strawberries, blackber¬
blueberries,
bananas,
figs,
pomegranates should be
seeds
and
all
all,
reported
tained
in
an
paragraph
"Readers
and
Of
vege¬
carefully washed.
of Puerto Rico
have
to
Vitamin
eat¬
uncooked.
fruit
raw
tables should be
is
should
should
or
fifty
times
doctors
It
no
B12
should
doctor had
pills
pany
announced
Jr.
is
recommend
the
S.
McVay
with
Wm.
is
long
has
J. Mericka
Commerce
of
the
&
ing
the
Midwest
enough
believed
that
With Vercoe Co.
(Special to The Financial Chronicle)
and
Pittsburgh Stock
Exchanges.
raw
Joins Coombs & Co.
(Special to The Financial Chronicle)
cooked eggs.
or
When I had TB my doctor insisted
SAN
Everett
staff of Coombs & Co. of Los An¬
recommended
geles,
the
uncooked
of lobsters and the live
All
beautiful
roe
birds
coral
live
only
eat
rible
only
dead
meat
birds
has
Calif.—
joined the
Inc.
(Special to The Financial Chronicle)
SAN
which
FRANCISCO,
William
the
are
Berg
With H. L. Jamieson
Their food must be
The
E.
of fish.
live seeds, live worms, and live
on
FRANCISCO,
hor¬
J.
Dietrich
are
and
buzzards; danger¬
H.
insects and
bacteria will also
Barnhill
now
and
L.
Jamieson
Co.,
a
Continuing Record of Demand for
member of the Munici¬
Governor
the
of
fl-£ Ceramic Wall and Floor Tile
Municipal Fo¬
of New York.
rum
Joins
Goodbody & Co.
(Special to The Financial Chronicle)
CHICAGO, 111.—James V. Mar-
HIGHLIGHTS
tinello, Jr. has become associated
with
Goodbody
&
La Salle Street. He
with
Francis
I.
du
Co.,
1
North
wasjpreviously
Pont &
Co.
The
Company operated at capacity
in
Dollar
Miami.
sales
increased
previous
Earnings
set
5%
over
the
$1.46
per
year.
CHICAGO, 111.—Jordan E. Rothbart
has
rejoined
the
staff
a
record
of
-
Reynolds & Co., 39 South La Salle
Mr. Rothbart has recently
been with H. Hentz & Co.
Dividends,
paid
regularly,
creased to 70 cents
a
were
in¬
Mass.—Waldo
stores.
As
a
result of the growing demands
country's expanding economy—new
school, hospital and church construction
"frE's
research staff and facilities.
provides additional markets for the Com¬
pany's ceramic tile products.
H.
has become affiliated with
Hornblower
&
Weeks, 75 Federal
Street.
(Special to The Financial Chronicle)
COLUMBUS, Ohio—Edward
Saville
is
now
connected
W. E. Hutton & Co., 50
Street.
America's Oldest Name in Tile
American
Now With w. E. Hutton
Tiling
IANSDALE
con¬
wide variety
of the
share.
^Special to The Financial Chronicle)
BOSTON,
a
buildings: homes, dairy farms, fac¬
tories, office and municipal buildings, and
The year 1954 saw expansion in
Hornblower & Weeks Add
used in both the
are
struction and renovation of
of
share.
of
Street.
months' production.
fHE products
Rejoins Reynolds & Co.
(Special to The Financial Chronicle)
Incoming orders for later delivery exceed
shipments. Backlog of orders at
beginning of 1955 amounted to four
current
throughout 1954.
Encaustic
Company, inc.
PENNSYLVANIA
The
Company's operations
are
summarized in the
1954 Annual
Copies
are
Report.
available
on
F.
with
L'ast Broad
gin
request
Otto
Inc.,
m
a
Calif.-.
affiliated
Building.
crows
§m
B
Ex¬
that I eat only uncooked raw, fer¬
tile eggs containing LIFE. He also
ous
Bond Club of New York and
pal
a
is
m mm bib
mem¬
Stock
change.
same
should eat
we
bib in
lication since 1944.
He
mm mm
or
Co., Inc.,
Building,
as
"The Eond Buyer" for many years,
and a Vice-President of that pub¬
addition
Ohio — Malcolm
become affiliated
T.
with
associated
recom¬
(Special to The Financial Chronicle)
that William
now
Advertising Manager.
Hall was formerly Advertis¬
Manager and
Secretary
of
our
brewer's
or
The Blue List Publishing Com¬
Hall,
be
selecting
from
sprout
will
1955, is thought-provoking.
evidence
when
CLEVELAND,
over 3,000 years old,
Egyptian tombs, will
as
if gathered
yesterday. It is debatable whether
taken
59
January,
be
Joins Wm. J. Mericka
Corn kernels
ALIVE.
for
food
COLUMBUS, Ohio — Benjamin
However, the age of- F. Melancon is with Vercoe &
peas,
beans, and corn does not Company, Huntington Bank Build¬
affect
their
life-giving powers. ing, members of the New York
spring water.
Digest"
the whale.
their
minerals.
The second
the
to
up
,
canning,
dehydrating, or
freezing also destroys this LIFE
—though not the vitamins and
orange.
of
the
non-fattening live seeds
phosphatides to our diets.
Union
anything
LIFE.
gram—con¬
page
that
the smaller live
of
some
C—per
on
algae;
yeast; but today they recommend
them. Perhaps we will live to see
not
Should We Eat Cooked Eggs?
seeds.
learn
we
their
uncrushed, before they
"killed" by juicing machines
boiling.
They, however, are
kills
above
Once,
bers
but
on
on
insist
mended
as
part of my diet.
believes in juicing ma¬
but
the
eaten
are
fish,
not vouching for
any the¬
of LIFE, but it does seem as
diet.
of age MAY have been
seeds
or
probably unwise to swallow live
and
to
and
so
considered
feeding upon LIFE.
experiments have not
been completed to prove whether
they should be
ripe seeds; also live "sprouts and
—
if
people
years
been
am
ory
Sufficient
vegetables,
those
live seeds,
of
these
plankton
I
have three functions:
"something"
have
ocean
ALIVE.
The
due
wa¬
It recommends
"raw"
more
of
fish; and
But,
all
pills!
"raw" fruits, especially
and
diet
as
That
believes
"raw"
more
the
larger fish live
LIFE.
living matter killed by chlo¬
rine, and pure milk which has not
the
of
that the smallest fish live on min¬
ute animal and
plant life known
that
sunflower
seeds,
small beans, nuts, and psyl¬
lium,
onion,
and
celery
seeds
should only be softened in warm
seeds
enough
the
been
the
may
a
out
believe
tangible
which
the
liis List Pub. So.
minutes.
that string beans
and
up
study
milk—that is, pure
has not had
spring water
ress.
m
cut
Keep Beautiful
impressed by their natural beauty
and proportions.
When analyzing
400
in
The acerola berry
El. B.
alive
as
also
more
important to mankind than
all nuclear knowledge and prog-
All agree
to
who
have seen any fish
(from mackerel to sharks) pulled
industry.
new
lived, before the
days of cooking, to 120 or even
Roger W. Babson
course,
brain's functioning could be much
IIow
Those
Pills?
be
prin¬
same
animals
chased at any hardware store.
to eat alive. It
billion
create
and
acquire
to
a
which only in
mass,
century
has
least
evolution
three-pound
the
the
owns
local
magazine,
stated:
automo¬
most per¬
Research
any
Brown
surprising to
use
Park,
Fla., the Flor¬
pos¬
and
to his last.
Babson
of
in
sibly
tell the story to
plish in
is
ida
article
reputed to
are
peas,
There
dis¬
understanding
an
brain's
medical
on
are
we
vegetables,
but
this
on
television.
Unfortunately, time is
short. Nevertheless, I would like
and
a new
three-dimensional
for
a
The
to
of
the
Certain moldy cheeses and
yeasts contain LIFE. Live seeds
in 15-cent
envelopes can be
Should Peas Be Swallowed
to eat less canned
fruit
industry.
of
television in manufacturing
plants, in medical training, diag¬
nosis, and care; its use in banks,
frozen
develop
Mr.
length
not cause anyone
or
to the vast
future.
some
basis of
It will
subject is rather limited compared
the firm
hoped to discuss at
it may be most important.
may
Furthermore,
wedding of electronic and
picture techniques in the
had
a
This story may be valueless; or
me
play a
lack of knowledge of
may
re¬
motion
Sees health diets
eggs.
things.
applies
forest.
promote long life, along with such matters as whether
peas
should be swallowed as pills, or whether we should eat
cooked
it
is used,
on
film
for
subsequent
showing. The motion picture in¬
dustry and our own television in¬
dustry should be hearing more of
near
electronics
the operation of the human brain.
corded
this
high¬
dead
ciple
pur¬
Mr. Babson discusses diet and activities that
and
the
the tele¬
Color film
camera.
the
and
part is
the
Still
speed
on
surprising thing to
which
is
bridged.
will
Another
in
present
from New
say
Angeles, and at the
a
true
quality film
the
of
cars
advances
fantastic amount.
By
of
the
present.
formed
technically
bination
control
Longevity
on
By ROGER W. BABSON
proposals have been made which
ing with much greater safety than
a
company
miniature
mounted
on
eat
A Discourse
the use of automatic
the cars. A number of
by
producer and the
the
film
of
ways,
allowing
the
passengers
complete relaxation while travel¬
on
respective staffs."
Along this line our own organi¬
zation, Du Mont Laboratories, re¬
cently demonstrated together with
major
made
these roads and with much
greater
their
a
be
panel before
all
the eyes of the
director
could
use
L.
with
Russ
38
The Commercial and Financial Chronicle
(1166)
thus
and
finally
city,
their
reach
Neither labor
fact
large part of the general public,
a
force which
included. In the old age system, both employee
employer (including self-employed) are thus taxed.
In the system of unemployment compensation the em¬
ployer only is levied upon to provide "funds" out of which
benefits are to be paid. The fact is, however, that these
grams are
without
and
cost of
full
it
maintain
must
for
least
at
a
year
women's
or
How
hats%,
to want to start
flow? That is
neglected.
be
t
a
into
"Security" Demanded
continue
distinction
class
big businesses
serious question which must
security-minded rank and file have not been
these programs. Organized labor, in par¬
ticular, which even in prior years had in some instances
been developing its own pension schemes and unemploy¬
ment benefits, has in recent years become quite aggres¬
sive. Private retirement and pension plans and funds
have now become ubiquitous. For the most part these
the part of the em¬
ployer and the employee. Funds accumulated in the proc¬
ess
hav<§ become huge, and, incidentally, are in very
substantial part responsible for what is now termed the
are
provided by cooperative action
stock
an
market
boom
of
1953
and
on
after.
So
far
as
these
real contributions to the
capital supply of the nation are
wisely managed and invested the oldsters will henceforth
be supported in part by past savings placed in productive
plant and equipment.
But
organized labor at least is far from satisfied with
all this. Times are good. Most employers are doing well.
Union managers have apparently come to the conclusion
that this is the year to move forward with what is known
as
the "guaranteed annual wage." The term has never
been very precisely defined. It, or something of the same
general nature, has been installed by certain corporations
which long years ago found ways to stabilize their opera¬
tions in exceptional degree, and in this way to avoid the
seasonal ups and downs in production and hence in the
volume of employment—and incidentally to avoid in very
large degree the costly evil of overtime. The unions now
demand that the system be adopted by the automobile
industry, in which seasonal variations have always been
quite marked and in which these seasonal patterns largely
derive definitely and directly from the behavior of con¬
sumers.
Report," page 6.
We would
Indeed, the Bureau tells us that
the average family income
of about $5,000 at present, if we
with
maintain
last
the
80
years'
in the next 80 years,
our grandchildren or great-grandchildren will have average family
incomes of about $25,000 of 1.953
purchasing power —a level now
attained only by about 1% of the
nation s families.
Obviously, this
would require fabulous quantities
,f!?w investment-
Under com-
petition, its benefits trickle, flow
and
spread all around
factor
every
agent of produc-
or
tl0n>
_
That
we
maintain prosperi-
can
ty and progress without
vestment
into
m0Ve
in-
new
his
book
noted
"Capitalism"
states:
"But
the
by
Government
preserve
federal
our
with
government)
sibie states,
adequate
investment
is
the
basic
unions
are more
than reluctant to
give up overtime, which
has been a source of very substantial windfall income
during the past year or two of heavy production in the
motor
pear
be
industry. Nor is that the whole story. It would ap¬
that union strategists are determined that there shall
reduction in the number of
no
employed in the
industry. If they prove finally to be willing to modify for
the time being some of the
particulars of their demands
the basic principles of their
objectives will not be altered
thereby.
men
the
regardless of
men
any
their fear of and
known
as
want
the
full
fruit
of
Economic
i00kec{ to by many for
their
dreams
growing opposition to what has become
This
strange ferm appears to
connote nothing more or less than a further
development
of automatic, mass production
techniques long familar to
Americans—a
development made possible by the perfec¬
which has given us television, in¬
credible computing and
calculating devices, many types
of "automatic" equipment and the like. We have no doubt
that these techniques point the
way to greater production
at less cost in
many types of industry. Their application
to many industrial situations has
certainly been stimu¬
lated by the high cost of labor in this country.
Organized
tion
of
electronics
labor would cut off this threat to its
It does not want to
gamble
on any
monopoly if it could.
gain that might
per¬
is
Report
in
to
the
1
s
p
not
y is
1
to be
ey
very
KaLf™?'w
Economist
(London)
has
The
frequently pointed out that there
capUaTC^on
capital
loimation
But
mocracies.
vestment
wider
western
deae
sustained
in-
in
new
important
is
It
needs
understanding and support.
The analysis of the Economic Re-
port should help and
to be com-
is
mended for its balanced
It
is
approach.
gratifying to note from the
Economic
has
been
Report
made
that
progress
redrawing the
in
separating private
dispose of
been taken to
increase
the
in
in
firms
for
amount
of
services
necessary
and
facilities, as
producing them
an
alternative to
itself,
is
also
a
the right direction.
The
limitation on national government
in
move
is
in
effort
our
natural
the
is also to be
commended.
Similarly
phasis
vate
on
we
endorse
competition
economy
and
the
of
Depart¬
Chamber's
report,
published
in
life and
of
way
management,
of
need
progress.
found, is
we
small
busi¬
The
not
government loans.
The
«e harder tor
some
a
and
t0
ernment for all
of
their
or
,
th
It
As
£he
homes.
effort
been
the
escape
great
has
helped
ancj
our
build
homes
tional
relief
erally been
field
it
assumed'that
the
em-
ingj
on
i^^^r^ja^Qf^her families in
recdf^SK^the fin&nciaFcategory
for
key role which the government
plays in this sphere.
such
individuals
and
high and
of
business
are
the post¬
scheduled tax
urges
the
Yet all these proposals
and expanded expendi¬
new
tures
are
found
among
the
rec¬
ommendations.
A
number
of
proposals
have
been put forward to finance proj¬
ects
outside
of
the
debt
limit.
Thus,
there is discussion of an
"independent authority" to raise
the
capital
Other
their
all per-
a
budget is unbalanced. The
ponement
gen-
public
that
overlook
reductions.
similar
housing installatj0n will be located here, another
one
there, etc., while vast num0ne
inconceivable
investors will
private hands.
still too
which
has
their
foreign
Economic Report states that taxes
Furthermore, when Government
a
within
attract
to
is
it
The
some
quality, for themselves, should be
questioned.
enters
for
groups
cue
one
were
and
program.
quick to take
urging similar
are
propositions for financing outside
;
of the debt limit.
Incurring
debt
penditures in the
uals,
business,
for
case
and
capital
government
no
subsidy, just because -they
happen to live ±rr a village, town,
should
avoid
budget
and
complicating
debt
ex¬
of individ¬
similar maybe justified at times/but
will receive
r's
ventures?
opportunities to make
private investments, and thereby
keep these matters in less-fric-
production
of
a x p a y e
profitable
inc0mes.
new
conditions
American
poverty has
our
unattractive
we jus¬
can
t
these
foster
countries
capital,
inevitably
incentive
raise
the
foreign nations rediscover the
own
Throughout history,
to
to
essential
o£ our citizens to try to build their
own
opportunities. If it is
projects are dubi¬
spending
money
lit—
part of the cost
housing.
If
such
and, therefore,
private investors,
tify
Gov_
wj[i reduce the incentive for
that
to
lower, or mod-
]ook
Corporation.
ous
Public housing grows and grows'
l£ m3y become an accepted way
of lifeJ
It could induce ^ore an^
j
profit
felt
' If'
0
be
Interna¬
foreign lending is desirable,
private lenders may be expected
to take advantage of production
era£e jncome people to build their
ow„
homes
the con
t
o£
more
the proposed
Finance
more
&
pu£)jjc housing must make it
to
should
argument
same
tional
_
sons
within
the
relief
category
lo-. should ,J?e, equally eligible.
But
development of^ ins$i&
"o"f-pUtak^hous*
resources
of
get the benefit
can
work
the
Business,"
applied
participation and maximizing
cal
Department
that small business
International Finance Corporation
numerous
government contracting with private
The
heavy tax burden is a
great handicap and the basic need
why taxpayers generally should
enterprises
"for
which
public subsidize
the
building
of new
operation was inefficient or of homes for certain
families, when
doubtful
advantage.
7.) often such taxpayers cannot afford
(Page
The
the
so
greatest
ness.
units
in
In
our
asked Con¬
housing
as¬
risky enterprise^?
the
Better
to provide for 35,000 public
(tax-financed)
leads
for
(revised), we show the cen¬
tral importance of small business
it?
The Administration
this
1954
Public Housing
trickle-down
or
all
"Small
all of the
following subjects appropriate for
inclusion
in
ment.
thoroughly
are
and
government
members,
of
the
funds,
on
who constitute the bulk of
men,
our
SyStem?
since
call
stabilize
to
and publie enterprise, and that steps have
economic basis therefore is attested by
"automation."
p
line
Never Mind the Justification
That
™s—Her
a
Commerce,
each of
next two. years. How
consumption (public works, un- was this figure derived?
Why not
balanced budgets, etc.)
may
in- one-half that number, or twice as
deed keep the slump from getting many> or 10 times as many?
worse.
But
they are after all
The number of public housing
mere
first aid, that is, if we are units which will be built is not
not just trying to smuggle social- the only issue.
Any precise figure
ism in by the back door.
Until does "°t answer the fundamental
growth once more gets under way question: In what sense is it the
and with it new investment, there responsibility
of the
National
cannot be a spontaneous recovery Government
(the taxpayer) to
of the private economy."
provide housing for certain citiMeasures
are
raising
tegrated
of
respon-
part of that federal
as
the prop¬
SBA, if continued, should be in¬
to
svstem
strong
If
Why should the general
taxpayer become financially in¬
Na_
Qur
project.
doubtful, the promot¬
likely to have difficulty
volved
(2) Are the policjeg of
yonai
the
is
sistance.
Report, and
gress
problem.
good
a
to
fields, as
Economic
banking
proposi¬
or
in
to
Adminis¬
its
business
a
par¬
one, some private
private lending institu¬
generally is ready to help
tion
doubted
is
is
If
finance
desirable
or
Government
additional
recommended
by all econ¬
omists. Professor David M. Wright
in
necessary
National
objective analysis,
_
tion
and
expansion
Business
especially
lender
ers
is it
the
bal¬
Administration
proposed
Small
osition
(i)
to benefit
the
business.
areas
for
to
budget.
continuation
the
tration,
like, however, to ask
_
In the case of the automobile industry, curiously
enough, this demand for employment security is coupled
with an insistence upon some of the fruits of
instability.
If current reports are to be trusted, the members of these
annual
Business
the
of
the Joint Committee to give consideration to two basic problem
rate
of progress
lead
question also should be raised
to
as
Some Questions
pre-depression high."—
can
that much harder to
the
A
Over-Burdened Congress
Annual
and
less essential expenditures,
or
ticularly
"34th
group
Finally, such public housing ex¬
penditures, like all other unessen¬
with
above the
One
friction.
endless
ance
Economic Problems (or
But the
satisfied
classes.
two
from
Small
More
relief
self-supporting fam¬
ilies, and the other group gets
taxpayer subsidized housing. This
establishes
community conflicts,
6
page
that
general neighborhood are made to
fall
tial
from
in
projects are creating social
Children in the same
make it
Continued
families
or
comes
^
men
should
program
launched, unless all indi¬
problems.
businesses from which
new
and progress
not
.
long in these tnrcumstances will
nondiscrim¬
Furthermore, these public hous¬
ing
year
dresses
of
category have equal access to the
handout, or the subsidy.
will bring forth in the way of demand for its
products must simply gamble with its life under present
circumstances. And this aspect of the situation grows
worse as
popular demand for cars turns more and more
on
style elements much as does the salability of women's
payments,
relief
be
viduals
or at all events without reducing the
the basis of informed guesses as to what the
on
interest
and
ernment
ever
reducing it,
it,
is
equality before the
law, it would seem that no Gov¬
policies of theirs actually drive
taking chances which amount almost to gam¬
bling. An automobile company which is required to hire a
work
This
the
In
ination
of these
some
others To
in both these systems elaborate tax pro¬
whether they be termed "contributions," or
what not, are in reality taxes against which government
undertakes to use its taxing or borrowing power when
required in the future to meet the needs of the retired or
the unemployed as specified. Popular demand for "se¬
curity" translated into political pressures accomplished
these things nearly two decades ago. Of course, this same
type of pressure has on several occasions broadened the
scope of these schemes and added to the degree of "se¬
curity" provided.
that
nor
no public
happens
to be
discrimination.
project
launched.
to be particularly concerned with the
appear
where
county
or
housing
however,
of providing partial security against the rigors of un¬
employment.
Of course,
politic
body
members.
See It
We
As
the
meate
Continued from jirst page
Thursday, March 10, 1954
...
statistics
we
our
by
$
Number 5410...The Commercial and Financial Chronicle
Volume 181
(1167)
making it
smaller
it
Area
We
that the debt is
appear
than
these laws: bureau chiefs, subchiefs, department heads, division
heads, subdivision heads, lawyers,
accountants,
economists,
public
administrators,
stenographers,,
typists, file clerks, charwomen,
actually is.
Development
hope
that the
Joint
Com-
mittee also will examine the pro-
for
gram
has
Area
been
tax
Development.
that
suggested
It
special
vided
for
This,
labor
surplus
like
other
The
of
it
to
considers
of
The
resources.
taken
The
and
on
should
The
procurement
gestions
sound
economic
price,
with
buyer
as
due
sug-
gr§gs
the
local
debt of state
governments stands at
about
billion in 1939, and $17 billion in
1929. In 1929 ancl 1939, their debts
of
tends
to
$38
billion,
against $20
as
18'.5%
equal to
were
22%
and
of
total Gross "National
our
raise the cost of defense expenditures and makes it more difficult
Product,
respectively. But today they represent only 11% of our Gross Na-
to balance the
tional Product.
budget.
trary approach also
Such
con-
furnish
may
a
temporary prop which will
lead
only to greater and greater
pressures for more and more arti-
ficial and
an
uneconomic
supports on
widening front. Our econ-
ever
but
must be
we
become
particularly
and
cold
make
sources
human
go
mittee
as
reasons
that
recommend
and
far
as
these
For
world of tensions
in which we must
in a
war,
our
^ve to the growth of our economy
shown by - the accompanying
tabulation.
provide
problems.
Joint
Com-
the
Wage
expressed
a
(Page
that
mean
a
is good only
no
when it has little
or
effect?
an
that
maximum:
higher
"A
mini-
might well cause lower production and substantial unemploymum
in several industries
ment
would
.
.
.
bring generally
higher prices in its wake.
Such
effects would make the gains of
workers
covered
illusory,
statement
the
of
wage
The ex-
and
industries
bar more workers from jobs,
them
force
or
legislation.
of coverage of the act to
occupations
more
may
remaining
to
overcrowd
t
e
uncovered jobs and de-
wages there.
press
^
minimum
Again,
tion
has
1954
In
ment
strong
Government
from
find
can
wage
have
to
employment
an
legisla-
bar
a
unless
employer willing
and able to pay
him 900 an hour?
Or $1.00, or $1.25 an hour?
And
why, incidentally, does our Government
have
different minimum
laws fixing highly different
wage
least three different programs: (1) The Fair Labor Standards Act, (2) The Walsh-
wages
Healey
under
at
Act, and
ing.
are
1,000
is
dis¬
better
times
48)
administrations
experiments
and
than
controlled
to
from
Economic Report recincreased expenditures
asked
to:
assume
a
great
for
continuous
expansion,
shy
may
away
from
assuming their responsibility, hoping and expecting that the
national
government will
take
The
over.
contemplated
is
not
enough.
While the President in his spe¬
cial
message
on
school
needs
(Feb. 8, 1955) discusses the fore¬
going
point
is
and
derpaid
that
mere'fact
such
a
is under discussion, prob-
and,
in
(italics supplied)
room shortage."
"than the class¬
And, yet the
Treasurer must
go right
local 1 communities
to
these
the revenfie
collect
which
those who want
back to themj minus the usual
brokerage fee "charged" by Washington.
^ further real
r-ses -n ^
control
^-on
of
rp^e
danger, of course,
possibility of ultimate
the
content
gupreme
.g hardly
£or
of
educa-
Court
lack of due
g0vernment
to
y
said,
process
regulate
that which it subsidizes."
(Wick-
piihurn, 1942.) Even though
a
program starts only with
"construction"
aids,
the
distinc-
t-Qn
between construction, teachjng a^s an(j teachers' salaries will
ambiguous and nebulous. The
nati0nal
written
government
a
number
has
of
U. S. Treas¬
more
for those who want
shape and influence the cur¬
books
to
see
the
day ahead when,
the rush to complete the work
Congressional session, a rider
proviso will be attached to a
public
education
appropriation
requiring that certain courses
taught, or certain views be
expounded
books
session
or
that
be utilized.
one
introduced
certain
text-
Indeed, in this
member of the House
a
resolution
Commission to write
Communism
for
to
create
textbook
a
our
schools
The Davis-
not self-enforc-
foregoing danger, it is only fair to
add, this member of the House
(3)
A substantial battery of un-
productive government workers
be employed to administer
must
and
bureau
to
it
of
schools
U. S.
ers'
local
our
latch
to
going
adapted
community
the
to
on
statement
find
politician
a
lumbia,
setting
salaries.
It
to
the
is
know
significant
is
the
health.
were,
it rarely pretends to be
national pattern. If it
then the citizens in the
other
states
chised
as
the
of
this
individual
of
Ad-
present
ministration has gone quite far in
programs, the
flood
a
in
of health
regrets
that
health
of
New York "Times"
3, 1955)
Jan.
a
in
lead
a
editorial
the
in
whole
a
features- which it
President
his health
failed
message
31—a
message covering a
broad range of expanded and new
programs.
is
Unemployment Insurance
doing and to look ahead.
should
be
disfran-
D. C.!
Every new
bureau and
adds
to
After
program, every new
every
the
function
new
burdens
of
over-
worked members of the Congress,
These members serve in a sense
the Board
our
Directors
of
governmental
of
the
phases
of
society,
These
have
and
programs
and
grown
functions'
of
"Members
could make
of
the
to
grown
point that probably only
ful
example
field
While
mention
he
ex-
of the unaided.
to
duty of
The
"aided" programs grow at the
of
what
C.
appro-
a
as
fore¬
Treasury financing of teach¬
its conditions,
Congress acts as the legislative body for the District of Co-
national
national bureau.
some
(Feb.
that'"
U.
of
When
by
A
Columbia
system
priate for North Dakota, or Michigan, or New Jersey, is not clear,
aid program or a program directed
demand
and
to
of
a
di¬
before too long to introduce a bill
for an initial "modest"
grant-in-
series
riculum
it
and, grows
is easy for
nevertheless, enumerates
with
mental
has
its
separate
units, national,
its checks and
govern¬
state
and
been
of
part
this
balances,
strength.
wants to
chance to
give
every
citizen
a
review and object to
the content of the textbook and
the
adoption
of
hand-
a
the
Board"
passing grade in
a
an
examination
of the statutes, regulations, programs, organization
and operation of even 5% of the
bureaus
or
for
programs
which
they vote and to wfiich they make
appropriations from year to year,
Does this make for sound govWhy are members of
the Congress so persistently anxi- 7
ernment?
ous to add to their overload of
work and responsibility — a responsibility which in all frankness they would have to admit of
being incapable of discharging in
the
our
in
sense
which
think
we
of
so-
failed, attempts were made to es¬
tablish "Federal standards" for the
state laws.
The
Economic
Report, while it
does not urge Congressional action
in this area, attempts to tell the
onstrated to be, we must always
states what they should
do, rather
recognize
that
we
have
other
than permit a multitude of
experi¬
long-range considerations that
ments at the state level.
(Pages
must also be kept in focus.
55-57.)
Thus,
Delinquency of Juveniles
the
uniform
In
early
it
years
assumed
was
that parents were responsible for
behavior of their off-spring.
the
The
to
church
help
has
build
also
honesty
Yet, here in 1955
we
find
that
it
appropriations
is
that
proposed
by
taxpayers
the
U.
control
S.
be
Treasury
juvenile
to
delin¬
quency.
If
the
sumes
national
government as¬
responsibility
for
the
de¬
linquency of juveniles, it must, of
Report
duration
recommends
benefit
of
pay-
for every eligible worker
regardless of how long he has held
a job.
Many states have assumed that
there
are
some
haps
are
fairly well attached
workers who per¬
the labor market but who, because
substantially less than standard
qualifying wages, should, never¬
theless, not be wholly excluded
getting
assistance.
grade
understanding
of
policies in governing the stabliity
an5f frow i
our economy
:^raneous matters appear to
be included in the Report, matters
better handled else¬
wnicn are
where—if
they must be made to
be
national
issues.
While many fine
the
,
.
things
importance
.
w
,,
of
are
said
state
and
„
Iocal government, he Report
recmany steps which, in
ommends
fiC ,'-tW
C!
-ue5
A,
.r resP°n"
sibility and their financial capac¬
ity to meet their own needs in
their
own
way.
to
of
from
high
on
the power of monetary and fiscal
on
ments
endeavored
integrity,
and moral fibre.
In
Michigan, for example, an employee who has worked some, in
at least 14
weeks, is entitled to
some benefits, but the number of
Firm Name to Be
Gross, Rogers & Go.
LOS
ANGELES, Calif.—Gross,
Barbour, Smith & Co.,
559 South Figueroa Street, members of the Los Angeles Stock Exchange announce that the firm
Rogers,
course, have the power and au¬ benefit weeks rises in a definite name has been
changed to Gross,
thority to execute its responsibil¬ two-third ratio to the number of, Rogers & Co. as a matter of
ity.
That power and authority weeks of work up to 26 week simplification. There is no
change
must go with
responsibility is an maximum. Should Michigan pay of ownership.
elementary proposition—almost a U. C. for six months to employees
Nelson B. Gross has joined the
truism. This is shown most clear¬ who work
only three months? Or, firm's staff,
ly in the case of the national gov¬ should only workers who are em¬
ernment's
ployed
tional
the
responsibility for na¬
security. To carry out this
responsibility
the
government
commandeers
the
lives
of
52
weeks
"uniform
weeks'
be
eligible
duration"
for
26
of
L. H.
Browning Opens
(Special to The Financial Chronicle)
benefits?
young men, and every young man
is liable without his consent to
should be equal to 50% of the un-
MONTEREY PARK, Calif.—L.
H. Browning is engaging in a securities business from offices at
compulsory
employed worker's "regular week-
726 East Garvey Avenue,
already
text
y^gly used in the public schools,
It does not take much imagina-
on
been
to
it will
pass
a
publicity
the
grows
recommending
It will not be difficult for either
to
be
problem
trend
shortage, less obvious
ultimately more dangerous,"
a
grants to the states to help
bill
have
not
staff
which
District
make
Conclusions
The
in
Here
them
national
a
the
by
the
would
rected.
pense
make
the country.
0ver
into
or
which
and
of
state
overworked
an
a
Congressional
pro-
via
tion
under
may
mind
report" is iden-
the
recruited,
or
public
Furthermore, grant-in-aid
and
is
the
grams can and often do warp
and
local
expenditures.
made
be
committee
consequence, too few young men
and
women
join
their
ranks.
but
in
with
may
to
Staff documents
government
was
En-
hired
are
he nevertheless said:
many teachers are un¬
of it,
aware
But
tified
problem.
thoroughly
ably will slow d6wn local efforts
ard
"the
for
published, even without
of a Congressional com-
review
One of the unique features and
("Congressional Record," Jan. 13,
page A519).
To help obviate the
Bacon Act?
These laws
it
Washington bureaus.
that nothing of this kind
now
ofGNP
Once the national governembarks ,on a subsidy or
erated
0f
worker
is
grant-in-aid program in this field
powerful pressurfe will be gen-
in
he
is
cation.
humanitarian
a
gnp
responsibility for local public edu-
appeal, but what moral right does
the
the
ommends
self-de-
feating characteristics of any minpansion
1939
and
they wou.d lower the standard of
living
of
uncovered
low-wage
workers.
This, we feel, is an ef-
imum
(or
education
say
be
merely
what there is about the economy
the responsibility of a Board of
great sources of strength in the
fig* $103 8
called
16S
Federal-state
systems
of Directors in a private business, a
American economy has been the
4&»fl®
91.1
50
unemployment insurance, frequent church, or a charity?
278.9
356.
78
innumerable sources of initiative.
attempts were made to nationalize
Thus, as we see it, the Ecospite of this showing, how- Our Federal system of govern¬ the entire
program.
When this nomic Report seems to be based
ment
1929
It
probably
fective
NafiDrti
program
hour, why not 850,
or $1.05, or—as some have said—
$1.25?
Somehow the President
has discerned (but just how, we
are not told)
that 900 is the safe
Why 900
Page
Nat'iDebt
ment
timing is found ap58).
Does this
new higher minimum
the
48
school
statesman
Now, owing to re- Local communities
^
and
^
expenditures for*>,many new such
programs.
The National govern-
preference for a higher minimum
wage, but said then that the tim-
propriate
local
the
on
local,
lifting the minimum
is significant.
A year ago
covery,
have
to
depends
and
power
However great the need for more
funds for education may be dem¬
.
bad.
of
state and local level and for many
on
was
Freedom
persal
the research.
may
mittee.
many progr&ms which traditionally have been handled at the
Administration
ing
aborning!
straight-
with
What the Economic Report has
wage
national
analysis of these
us
.
say
writing by the
government
might die
for
Minimum
to
63
^
.
ever,
strongly
(Page
\
'
re-
possible.
we
the
forward economic
other
debt,
rela-
as
guard lest this
on
accepted way of life—
an
government
however, has greatly risen
may
textbook
the
on
ury money or
national
be able to absorb these
uneconomic steps already taken,
omy
at
"But too
Today
and
t&x-rate and debt
pos-
regard,
approach
"outmoded
pos-
for national security issues,
contrary
mere
do
forts
To
updating state and lo-
on
might be minimized and most ef¬
centralized
local govern-
makes'jf number of
bureau
or
thusiasts and zealots
limits."
a
Government
buyer, that is, obtain the best
products at the lowest
A
It
"research"
committee
followed in every case,
bureaucratic control of education
were
have
^
state/igd
of
Cal
sible
course,
sition
ment.
programs
should act like any other prudent
sible
short
dure
educational
President Economic Re¬
contains ^ significant but
analysis oflhe financial po-
planning
have
base.
port
,
Government's
defense
The
aspect of sub-
an
relief.
as
wage
System of government
placing Government contracts
in labor surplus areas.
Similarly,
our stockpiling
program seems to
or
minimum
.
«
to
have
the
quently they are started by appropriations to a Congressional
per-
taking
Strengthening Our Federal
same
question must be raised in regard
sidy
could
recommendation,
the uneconomic location and aliocation
Committee
valuable service by
a
good solid look at this matter
a
humanitarian
appeal, but it also could lead
Joint
form
areas,
proposals,
course, has a strong
on
Washington
and
scattered
throughout numerous field offices,
facilities
defense
new
in
and
on
in
amortization benefits be pro-
located
janitors, and
sweepers,
every member of Congress is ex¬
pected to review it before voting
upon it (Page A521). If this proce¬
39
No
in
ting
have
a
at
the
head
of
the
delinquency bureau
sit¬
Washington
Super Saint,
delinquent
exuding
and
military service.
doubt
juvenile
blood
virtue
with
in
in
would
we
with
his
every
antiveins,
breath
heart beat.
every
Just
why juvenile
Paul,
or
delinquency in St.
St. Mary, or St. Joseph,
St. Peter
the
Economic
recommends
that
tax
was
or small, this
fairly appropri¬
today under this formula
ate.
But
50%
a
would
50%
and
benefit
be
of
it
of
regular
must
be
merous expenses
between
nation-wide
problems and national problems.
Defense, international relations,
etc., are obviously national prob¬
lems.
Fire control and juvenile
delinquency are n a t i o n-w i d e
problems,
problems.
but
scarcely
in
ate
modest
way.
Fre¬
than
take-home
pay,
ily
SAN
FRANCISCO,
fred H. Cassidy has
taxfree, and the
avoids
such
outside
as
nu-
transpor-
lunch,
This
Calif.—Alof-
opened
fices at 1890 Broadway to
duct a securities business,
con-
work
recommenda-
fWnc Office
^alamo°S Upens Uttice
(Special to the financial chronicle)
MONTEBELLO, Calif.—Joseph
A. Galambos has opened offices at
2426 Cleveland Avenue to engage
in a securities business,
against the worker with fam¬
responsibility.
Are not
in better position
to
termine
these
the
District
of
(Special to The Financial Chronicle)
Columbia
laws should be drafted
model"
Louis Horwitz Opens
de¬
matters?
The Economic Report states that
"a
Cassidy Opens
(Special to The Financial Chronicle)
that
remembered
states
the
a
more
worker
etc.
wages
tion,
furthermore, would
favor
the single worker and discrimin-
national
Most of the "welfare" programs
begin
are
unemployed
tation,
regular
substantially
benefits
clothes,
A. H.
seemed
clear, although all of us are most
certainly against juveniles who
are
delinquents. There is a vast
difference
benefit
non-existent
formula
the
a
Report
the
ly wages."
When the combined
social
security and withholding
problem for our
national government is not made
or
is
Again,
our
for
the
so
as
states.
U.
C.
to be
Just
BEVERLY
HILLS, Calif.—
Louis Horwitz is conducting a securities business from offices at
242
South
Robertson
Boulevard.
-40
The Commercial and Financial Chronicle
(1168)
serv-ation, for they
Expands Market for Antennas
Harold
Harris, Vice-President
ing rural TV antennas,
At
antenna dis¬
Ellen ville,
N.
Y.,
meeting
a
tributors
in
Harold
of
Channel Master Corp.,
supply¬
will expand its markets.
Vice-President in
Sales of the Channel
The
principal reason for this,
continued, is that aluminum
he
tubing
for) Channel
poration,
an¬
tennas
is
that
pany s
nounced
mill,
company
i>
about
to
expand into
broader
let
mar-
The
its
for
the
of
the
bled
Channel
Master
will
concentrated
small
in
Harold
of
Harris
mil¬
has sold
performance an¬
designed for
long distance reception and gen¬
erally selling for prices higher
than big city antennas.
tennas
In
high
-
specifically
rural
the
Master
has
cessful
extremely
the
emphasis is
entering
in
suc¬
the
markets
Master,
high-
quality conical TV antennas that
priced
antennas
conical
the
on
low
as
those
as
Channel
new
accord¬
in
tennas
Los
made
other
and
cities
large
by at -least
10%
last year, and
The
in¬
compared
as
to
by 30% during the
city
series, first cf
line of bigVery
High
Fre¬
outdoor
new
quency
antennas, will
market
in
ing of 22
the
few
a
manufactured
to
in
resort
to
gas,-with
costs
and
prices.
stenT taken "bv
Smneof the
its
the
authority have been drasto the pipelines have
new
tic.
Prices
'frozen'
been
of
June
7, the
date of the
Court1 decision, and
producers have been forbidden to
discontinue
as
service
Commission's
without
approval.
orders
contrarv
run
terms of many
the
Both
of
the
to
be
Consist¬
weeks.
different
the
on
models,
clauses
providing
Federal regulation,
for
'
voiding the agreement in
Federal
of
case
regulation.
The
Commission's orders, therefore, in
a seizure of prop¬
erty and
Survey,"
anty
monthly
publica¬
denial of the right to
a
type of busimay have become un-
that
ness
They
invalidate
the
of long-standing contracts
which untold millions of
terms
upon
have
be
been
difficult
contention
invested.
to
It
dispute the
of
spokesmen
for
the
who
declare
that
no
established
of New York, in an edito¬
article, strongly condemns as
And
pany
rial
d
and
new
unwarranted
field
of
Federal regulation the assumption
of
jurisdiction
by the Federal
Power Commission
the
over
ing and production,
as
transportation
pric¬
natural
of
Concerning this,
Survey" states:
"A
question
well
"The
the
as
gas.
Guaranty
of
prime
import¬
called upon to deal at this session
is
the
the
economic
country's
Fae
status
major
production
of
of
one
industries—
of
natural
gas.
Shall the competitive and hazard¬
ous
business of natural-gas pro¬
duction
be
utility,
or
regulated
shall
it
as
be
public
a
allowed
operate under the rules of
to
private
competitive enterprise? The con¬
tinued vitality and growth of this
dynamic industry, and of others
an
well,
may
hinge
upon
the
an¬
swer.
last
of:
question
June
preme
five
arose
the
as
suddenly
result
of
a
Su¬
Court decision.
to
By a vote
three, the Court ruled
that the Natural Gas Act of
1938,
which gives the Federal Power
Commission authority to regulate
sales of gas for resale in interstate
commerce, applies to sales by in¬
dependent producers to interstate
pipeline companies. Section 1 (b)
of
the
•erf
this
...
to
act
reads:
Act
.
.
The
shall
.
the production
ing of natural gas.'
it
had
been
provisions
not
or
apply
gather¬
For 16
generally
years
supposed,
and the Commission itself had
peatedlv
ru'ed
producers
line
to
arid
with
th^t
this
gatherers
the
companies.
exemo-
not
interstate
The
cision, which reversed
Commission's
ity,
Gas
men
prac¬
adds:
not
convinced that their
are
industry cannot thrive in
utility environment.
a
The
industry has reacted
vig-
Commission
has been
necessity
and
to
publiccost of
the Natural
amend
Gas Act
so
establish
to
beyond doubt the
exemption of independent pro¬
ducers and gatherers from its pro¬
visions. (Such an amendment was
passed in 1950 but
vetoed by
was
rate
regulation
by
Exception¬
al risks can be taken only when
there is a reasonable prospect of
corresponding rewards to the suc¬
conventional methods.
cessful.
taken,
in
Unless
sufficient
found.
now
an
rulings,
pipe¬
Court's
one
af¬
of
upset
de¬
the
this
risks
low
tion to the rate of current
effort
to
tection
have
give the
he
the
reserves
does
serious
enough, but the questions
involved
in
Federal
be
The
pro¬
of
consumer
is
further increased by the fact that
a
strong in¬
centive to escape Federal regula¬
tion by selling natural gas locally.
Already
cent
to
consumers
ing four times
as
lation
to
as
consumers
are
eral
in
regulation
An increas-
their
are
power
time, promote the industrial
development of these local areas
of the rest of the
country.
lation aimed
of
at
dustry
attack.
entering
If
into
1S
What
do
natural—
is
Congress
not
interstate
exempt,
being asked to
is
rjere y to rescue an lm-
portant industry and its customers
fHeatflrm
American
a
bfsfc princSe
ico-economic
politico-economic
o
ohiphi
losophy."
a
Toscanini. Jascha He.fetz,
Rodgers
would
b(!
Rkhard
needed to produce music with this
the
But
system-
new
researcn
"SJLrfot* turn
c^lne cioes not
bro
entoi eei.o into
composers, conductors or instru-
may
well
be
comply with one without
violating
the
other.
Moreover,
artificially low prices
are
undesir¬
viewpoint of
con-
mercial
$ My answer
Competition can be
in
research
as • in
manufacturing and merchandis¬
ing. As members of -a profession
deeply
musical
key
the
of a great composer,
score
^ througn Me synthesizer
^od obtain results that would be
ment,
r\p
..tpptpc-
H.
Desbrow,
i
^
ANGELES
r
t,
u
j.
Cal l-Robert
Gerhard
D.
Fried-
become associated
with
Dampscy-
Tegeler
210
West
&
Streeet.
Mr.
with
Co.,
Desbrow
Hill
was
Richards
weil
to
7th
previ&
Co.
Staff
(Special to The Financial Chronicle)
LOS
ANGELES,
Calif.
—
Ben-
jamin B. Masten, Louis E. Richards, and John H Van Uden have
play
people willing to risk
money
in
research v and
pioneering
is
with
pared
risk
Co.
West
of
6th
Los
Angeles,
Street.
small
very
those
who
com¬
are
ready-
their
simulate, instrumental
stances—where the information ia
not "classified" and does not in¬
merely
volve
musical
any
can
by
instrument.
pressing
typs-
writer-like keys that actuate
tron tubes and transistors.
eiec-
Inc.,
has
602
our national
security—RCA
continually made p. ogress re¬
ports
that
and
catch
Recently I invited Alfred Wal-
move
lenstein, Conductor and Music Dithe
of
rector
Los
Angeles
harmonic Orchestra,
ductor
of
the
Phil-
guest
a
NBC
con-
Symphony
Orchestra, and former solo cellist
with
the
monic
New
and
Orchestras,
ton
York
Chicago
to
visit
Laboratories
demonstrations
I
give
with
aruj
witness
and
tnis
to
system,
discuss
its
inventors
the
and
judgment.
accepted
He
He
spent
ahead
sired
only
to
even
We
us.
to
welcome
It spurs o_r
own
ac¬
results.
For
instance, our faith and per¬
sistence in pioneering television—
first,
black-and-white, and then,
color—and
our encouragement
to
others to get into the
field, led to
its present state of
development
which
otherwise
public
might
lor
another
Whether
pleting
whom
similar
as
a
sizer
10
American
have
enjoyed
M
years,
succeed
in
com¬
invention before others
stimulate to work along
lines, is not
it is to
engineers and in hearing and seejng tbe electronic music synthe-
the
not
we
an
we
velopment with
scientists and
not
times
at
of
competition.
several days in discussing this deour
but
up
information
others
tivities ond increases the
possibil¬
ities of earlier achievement of de¬
gra-
invitation
my
to Princeton.
came
Prince-
the benefit of his pro-
me
fessional
ci0Usly
Symphony
our
of
him
asked
functions
Philhar-
released
enabled
Musician's Appraisal
A
bring
a
important
as
product
new
or
and
perform.
hig
of
I quote only
statements.
He
"Development of
instrument with
riety
of
tone
few
a
said:
,
electronic
an
unlimited
an
colors
and
an
va¬
un¬
is
that
step
a
cannot
fall
t° challenge and stimulate human
imagination. Depending upon the
perfection of the process, an entirely
new concept
cally usable
of what is musi-
be evolved.
In
my opinion, the function of such
an instrumhent is two-fold — to
synthesize familiar sounds and to
create experimentally an endless
new variety of sounds.
Indeed,
the entire world of sound can be
"There
is
perfected
table
no
and
responsive,
synthesizer
In
use.
into
existence
helping industry to
and
grow
prosper, we believe that we
contribute to the public benefit
and
in
well.
the
If
an
long
run,
our
gress it must not stand
obsolescence
or
Electronics,
achieve
the
new
is
the
i
race:
triumphs,
of
is
Time
for
room
compete.
as
in fear of
competition,
in
big track
there
own
organization is to pro¬
all
There is
no
run
to
on
on
which
who
would
finish
line.
not
thst
become
of
yet
if
H. S. Myles
Manager
BRADENTON,
Fla.—Harry S.
Myles has been appointed acting
Manager of the Bradenton office
of A.
M.
Kidder
&
Co., 437
12th
Street, West, succeeding Ralph A.
Lahan, who passed away on FeU.
25, 1955.
thoroughly
electronic
can
^eas
of
nuestinn
made
the
fountain
new
service
new
can
tapped for the creation
unheard musical forms,
music
veri-
a
inspiration
and
oniy because end-
Joseph. R. Cox Joins
Albert Frank-Guenther Law
Joseph
R.
Cox,
formerly
with
less
the
an;
pattern- no matter how r^thmically, melodically or harmonically
has joined the Radio-TV
Depart¬
ment
of
Albert Frank-Guenther
new timbres can be invented,
but alsQ becauge realization of
complex
and extensive, becomes
possible through the series of rou¬
ating
the accurate
then reconstructing
cnrnp
timbre,
an
aria'
and
from
nnpra
,1
i„
Wallenstein
"In
its
present
or
a
the
point where it
elec¬
m
sic
can
re¬
personalize live artists
orchestras.
Law, Inc.
Named Directors of
American S. E.
At
annual
Clearing
meeting of the
the
American
of
Francis
.
,
until
than
can
through
be
human
Charles
J.
directors
to
serve
With Kidder, PeaVdy Co.
(Special to The Financial Ch-onicle)
Styles is
now
Pont.
March, 1958.
BOSTON,
w
only
du
elected
were
'
results
I.
Kershaw, Reynolds & Co., and J.
Robert Laidlaw, Laid.law &
Co.
only to expand the boundaries of
cal
the
stockholders
or
However,
the ideas
expressed
for
further
development of this System, when realized, should make it possible not
achieved
Network,
Exchange Clearing Corpo¬
ration, Robert J. Humphrey of
concluded:
state
tronic system of synthesized
is not at
Dumont Television
Stock
„
Mr.
been added to the staff of Coombs
&
that the
aware
of
.
to
place
Coombs Adds
scientific
pioneering develop¬
you are
their
to
wita
concerned
number
take
can
is
as
stimulating
For
they
,
products?
simple.
research and
example,
Competition
ophy prompts me to reveal these
developments pubLciy .while
they are still in the experimental
stage. Why do we not wait until
they have Deen completed as com¬
orientalists, it does enable them to
become
interpreters
of
music.
manipulations.
And
it can
synthesize voices from the past,
as Caruso's great
voice, cre-
richsen and Edrie P. Haz'ett have
a
position where he
of
wonder what philos¬
may
new
such
(Special to The Financial Chronicle)
r
LOS
regu¬
cannot
the
to
whether
tine
With Dempsey-Tegeler
jurisdictions, placing the
from
under
eral regulation, no segment of in-
two different ob¬
There
producer in
able
is
production is subject to Fed-
producers, they will be
caught between two tyoes of
jectives.
Worst of
all, the whole
concept of free competitive mar-
ously
"As for
clash
intended.
needs
may be expected
disparity and, at the
the expense
artificially induced
on price and supply exactly the opposite of those
elsewhere. Fed¬
same
at
of
pre-
exposed
wastage. Consumers face the pros-
much gas in re¬
total
risk
A
is
pect of effects
us¬
regulation
to widen this
the
to
paralysis.
resource
adja¬
areas
natural-gas fields
natural
couM
need
have
creeping
gas
gradually di¬
minishing his future supply.
now
with
kets
use.
deeper.
even
cious
even
in
consumer
not
effect
producers
strange
wondered
riety
rela¬
reserves.are
all-time
are
cannot
amounts
Proved
at
these
natural-gas
new
t
ma-
notes
"The immediate loss and injustice to natural-gas producers are
ingly vital industry is threatened
for
^
this
and
limited capacity for rhythmic va¬
strike
basis
j
me
M
heard
of the musical
new
so
President Truman.)
drilling dry holes cannot be capi¬
the
sounaecj
to
practicality of
lts orders. Congress is being asked
only unneces¬
positively detrimental.
but
or
requested to reconsider the valid-
regulation of naturalgas production is based upon the
sary
war
emergency.
The
cision.
Federal
belief that it is
of
The Supreme Court has
petitioned to review its de-
been
strength of the opposition
re-
tion covered sales by
independent
producers and gatherers—that is,
filiated
"The
time
orously.
as
"The threat to the
"The
the
and
editorial
in
except
talized and hence cannot be made
with which Congress will be
ance
belief
the
been attempted in the United
"The
tices based upon it."
tion of the Guaranty Trust Com¬
first
I
many
from
desirable.
national
Holds, under
increasingly vital industry is threat¬
with creeping paralysis.
issue of "The Guar¬
When
a
withdraw
States
consumers.
Stimulus
You
artists
ever
an
ened
The March
and
ing musical instruments-"
g.eat
capital in estab¬
achieved by musicians playing
their conventional
instruments, lished enterprises operating prof¬
And the men who operate tne itably.
In television and in other in¬
regular., synthesizer need not know how
sweeping invasion of private
rights by political authority has
article, "The Guaranty Survey," monthly pub¬
lication of the Guaranty Trust Company of New
York, says
such regulation is not only
unnecessary, but is also detri¬
producers
create
can
music.
They
would
by any company,
speaker concluded.
hands and voices and with exist¬
great musician the electionic
a
synthesizer
clauses
dollars
editorial
both
of
schedules of price increases. Many
contracts
also
contain
'escape'
it is
complete line of conical
Dangers in Federal Regulation of Natural Ga
to
As
Dr. Olson has said, "in the hands
long been customary to sell
natural
gas
u n d e r .'escalator'
more
mental
must be a good musician.
son
existing contracts,
It has
industry,
In
10
page
New Developments in Electronics
to
further
Federal Power Commission under
made
most
but
alternative
no
from
effect constitute
"Maverick"
the
turn
will
next two years.
by manufacturers who operate in
and
Chicago,
York,
the company's sales in 1955
crease
basements
garages
New
an¬
Angeles, Boston, Washington,
antennas
and
TV
certain
rise, ne¬
cessitating
higher
rather
than
lower prices to the consumer.
If
the effect upon supply is sufficiently
serious,
local
utilities
throughout the country will have
thp<?p
Master
Channel Master's
it de-emphasized, Channel
he
added,
will
produce
are
the
on
performance.
and
Now,
Channel
markets
been
where
quality
Channel
the
and
lowest priced
the
or
Mr. Harris forecast that sales of
"Cringe areas" and
lions
be
an¬
non-assem¬
non-assembled
in-
would
distributors
almost
seem
are
same
market,
ing to Mr. Harris.
city
-
the
for
competing
antennas
and
antennas
pre-assembled
sell
antennas
Master
has
primarily
than
less
in
company
rural
The
and
increases
pre-assembled and non-
will
tennas
costs.
conical
new
assembled.
Since
1047,
antenna .-in¬
considerably
available
products.
start
the
in
materials
lower
extrusion
resulting in
unique
dustry,
a
Master an¬
at the corn-
pfdduced
owqyaluminum
of dwindling
supply is borne out by
experience, the unit costs of transmitters
questionable quality.
of
threat
the
terstate
low-priced antennas that are
out
Master Cor¬
the
free markets.
"If
Continued
lor purposes
in which other
fuels can be used and might be
more
economical in a regime of
the
Harris,
charge
of
encourage the
exhaustible natural re¬
an
source
<iiie coitt£any, which has been successful in
annouac^
of
Use
Thursday, March 10, 1954
...
der.
now
Mass..— Arthur
Peabody &
Street.
D.
connected with Kid¬
Co.,
75
Federal
Volume 181
Number 5410...The Commercial and Financial
Chronicle
(1169)
D.
Business
Survey Committee of the National Association of
Purchasing Agents report current conditions in most segments
good, and there is
are
high production
a
A
composite
..
-
.
National
ings
who
.
Agents'
of
Pur-
-
,
of
ed
Survey
whose
F.
M
P
h
u r c
The
a s
es,
re-
evidence
on
items
of
some
advance
which':
short
come,
are,
such
—
steel
as
increase in February over last
and 49% the same. Those
and
reporting
increase in
an
(55%)
mechanical and electrical
September,
8%
new
1950.
,
,
orders
6, D.
or¬
of all
their
were
area,
Tlie general
able order
is
*
Accounting
Trade and
counts
on
balanced
are
items.
some
evidence
and
fairs
dis¬
is
for
of
International
the
on
Foreign
American
strong
(paper),
that
lengthen
just a little. The items being
bought further in advance are
Houses
of
Banking:
are
ney
1951.
was
terials
The
parade
of
led by basic raw
such
as
items
and
on
some
an
Cases
^
H unstable.
'
•
"
~i
•
Agents
,
sums up
the general
Purchasing
inventories
materials.
ders and
better
of
More
production
caused many to increase
of
inventories
of
steel,
dicate
creased
up
business)
and
with
nearly
their
but
Scattered
most
timistically at
pickup
tion
all
per
any
for
reports
vnrk
copy
R11
4 *W'
v
for single
three $12.00
of
a
these
slow
in employment
look
but
F.
for
Yes,
But
and
Phillips
—
Economic
...
as
Spring
approaches. Skilled technical help
before
\
Pine
Mining
All
n
Street
New
the
.
organized
Bank for
International
m,™J ! J
o
,
and
Public
Public
"These
Writings of George
Washington—Edited by Saul K.
Padover
Harper & Brothers,
New York, N. Y.
(cloth), $5.00.
—
Akin-Lambert AcJds
LOS
ANGELES,
Martin
with
'
*
become
above last year.
keep
—
The
Brookings Institution, 722 Jack-
up
With such,
„
'i
unemployment and
"s ,.?artiima equivalent-would
rise from about 4 mil-
be likeiy to
linn
i
in
tqc4
whol~
a
to
about
•wnoie to anoui
million ini 195o as a whole with
iv
considerably
■»
;' Special to th^ financul cheoniclk)
■
Grand Rapid*. Michigan.
with ~Boren
&
Co.,
186
Canon Drive.
year's .end' That
an
annual
$20
..
,
rate
billion
*
fw"uld leave u.f
of
below
.
.
output
the
nearly
full
pro-
^
The
group
specific
a
number
including:
raising Federal outlays by
production; increasing old age in¬
surance payments
by $1 billion
annually; and subsidizing slum
place
(Sneclal to The Financial
Chronicle)
LOS
T.
ANGELES,
Butterworth
California
wilshire
barth
Calif.—Ernest
and
d
Investors,
3924
Boulevard.
was
Weston
or,
sador
curities
program
from
offices
3750 North Nevada Avenue.
at
would
inflationary
strain
on
&
Trust
Keyserling,
subscribe
public,
of
to
all
details
■
B.
.
.
c
Olym-
Rpppllf rh^m!
Washmgton.
011ah^
9? ^an-V fSr<
p
|eattle ?First> NatfoTal
«
Bank";
...
w
,
.
.
.
Seattle, Washington.
-The National Association of Bank
waiionai
ol
Women,
Women, founded in 1921, is an
founded in 1921. is an
organization
composed
of
over:
2,000
executive^
women holding exe
positions in banks throughout the-
country.
...
Joins Fabian
(Special
.
to
The
Company
Financial
Chronicle)
BEVERLY HILLS, Calif.—Mari
Sorrille
is
now
connected
with
Company,
9500
Miss
Santa
Sorrille
formerly with Hazel Zimmer-
man-
of
join in the
placing it before
With Pacific Coast Sees.
(Special
ARNOLD,
Alt.r-
peals.
DAVIS, Attorney;
Director, Office Economic
Stabilization.
a
Tr„^
are:
WILLIAM H.
I'
who
V&SS.'t&SeSKi
former
^Edittf
Mrs.
o
*,
was
desirability
t
,
CalW
Company, Beverly
tee
of
the
Conference, all
of
whom, it is stated, do not neces-
Mr.
but
Texa,
A
Hills, California
Boulevard.
study,
0«
Annies
'
&
sarily
General
S^b?af' Secietary Hills Assistant
and
Beverly
National
an
not
economy.
THURMAN
business
Chairman,
General
Fabian
the
COLORADO SPRINGS, Colo.—
Emory Reece is conducting a se-
Los
Monica
&
Noble Tulk
Hotel
rPnPrai
Hmes, First
Fort Worth
the
the
and
any
T^vas
A.
Ruth
members of the National Commit-
Mr.
Spitzpreviously with Daniel
Co.
report insists that such
Besides,
Lloyd
W.
Spitzbarth have become associated
with
the
Worth
^
National Bank
Bank
.
advocates
measures
ing power; a rise in the wage
minimum
from
the
current
io
The
Fort
Cashier,
„
du^10n level.
expansion
Two With Calif. Investors
.Cole,
Grand
-Southwestern: May 13-15, Hilton
Hotel
chairman, Mrs.
BEVERLY HILLS, Calif.—Shir
leV Levinsohn has become af- clearance and low rent housing
.
General
Rapids. Michigan.
higher level by the
33M:'billion to.stimulate jobs and
™ '
Co,
Lake-Midwest (Joint
Meeting):
May 6-7,
The
Pantland
Hotel*
.
power;
a-
,
Nashville, Tennessee,
Hmited gr0Wth' the
lev,el,of Chairman, Miss Irene M.
unemployment — which includes Union Bank of Michigan,
both full-time
Co.,
•
„
,
follows:
Atlantic—New England
?-^e
This would be far
expansion needed to
with a growing produc-
639
Exchange.
divi¬
Association
as
Southern: April 22-24, Hermitiiocei.
Nashville, Tennessee,
General Chairman, Miss Thelma
B. Leonard, First National
Bank,
to
cents to $125
with a broadening
, South
Spring sireet,;of its applicability, to add a posStreet,; of
spring
members of the Los Angeles Stock ciKio
Stock*
members of the Los Angeles
sibIe $2V2
billion
to nn^ncino
purchasing
^
inc*'
Emory Rooco Open,
Policy:
Brookings Lectures 1954
geared
seem
various
Women is
Meeting):
April
15-17,
Biltmore, New York City,
General Chairman, Miss Pearl,
Gaulette,
Assistant
Secretary,
Bank of America, 40 Wall Street,
New York City.
to
$4V2 billion of increased purchas-
con-
Akin-Lambert
adjusted
raising personal income tax exemptions by about $200 to create
Calif.—Fred-
has
policies
the
(Joint
short of the
of
(Special to The Financial Chronicle)
the
Hotel
objectives, 'optimistically' described, of advancing our total
output this year by only about 3%
and
h",»!X '* C"'
*
Economics
the
Basic
Private
Education,
a Mission
from
-
National
of
of Bank
the
Y
X.
—
Founda¬
op¬
steady
nf
Western
,
N
IN.
Selection
filiated
high
show
bv
Washington Papers, The
nected
j
.
$18.00.
.
by
ddress
(paper), Atlas Cor-
33
5
o,
eric W.
,XT
New
—Report of
a
York
Y.
Economic Development of
Nigeria
surpluses of unskilled labor,
even
N.
Inc., Irvington-on-Hudson, N. Y.
(paper) single copies free; quantity prices on request.
_
Employment remains at
some
five
Charles
present
Employment
noration
North
the
are
inventory picture.
level.
all
e
of
of this great nonsecret
tivity and labor force*
Pn
President
Odium
National
~
^aUable^jtadfes of,
York Central, New
.Haven,:
analysis,'
and
slightly (to offset in¬
satisfied
are
11,
r
ciflc—$5.00
reporting in¬
inventories
the
—
Pennsylvania and Southern Pa-
\
B
Conference
Fifth
G
Competition?
of those
their
or
New
feeling that
:
Over 80%
70
ronvunpnt
r
B'way
Also
,
rommerrial
Invest¬
these items may be
on
too low.
same
nickel
copper,
kinds
some
Calkins
J.
Inc.,
York
•
:inomas
ma-1
raw
terial inventories correspondingly.
Some express concern over the
shortage
Francis
—
r
52
Its
L'?ydA
Atlas °rd!U™'
Corporation
Com¬
Chesa^ke & copy r-DepL^ ^B-33,
Oh.o-N^study—
or¬
have
Press
in
•
pur-
new
and
the
W.,
(paper)
C.
Com-
and
Uire^-reprints^
New
Problems
i
of reporting
on
chased
Ronald
Prentice-Hall,
Avenue, New
(cloth) $4.00.
Inventories
"Balanced"
consensus
D.
Finance
well
not
are
use
Regional Spring
Conferences
sions
of
[i.
e.,
our
economic
strength]," the group contends.
a
and
-
,
9,
of
Flovd
Transition, The—Sid¬
G. Tickton—National Plan¬
ments
example is heavy electrical equipment, where the market has been
•
Rico
15 East 26th Street, New
York 10, N. Y.
(cloth), $6.75.
very
products;
Group, Wharton
Coopera¬
Ass'n Conferences
weapon,
—
University
Uranium
pany,
manufactured
many
Rico,
San
(cloth).
Business Budgeting and Control—
J. Brooks Heckert—second edi¬
Offsetting these increases, how¬
on
Puerto
in
tion—The
competition is reported
Common¬
—
in¬
ma¬
;
keen
Inventories
-
The schedule of
"Our current national economic
—
of Pennsylvania, Philadelphia, Pa. (paper)
$1-00-
$1.00.
and rubber.
ever,
of
Washington
aluminum
copper,
and
Business Execu-
School
Rico
ning
Association,
1606
Hampshire
Avenue,
N.
than
Purchasing
Agents. This is the largest num¬
ber reporting increases since Feb¬
ruary,
Puerto
Venuti
Juan, Puerto
reporting
creases
in
common
up, so say more
the
di
wealth
Budget
of
Growth
Biagio
Commodity Prices
Prices
of
—
merce,
labor.
half
Role
Burley
-
Nat'l Bank Women's
Middle
the full
Orin
children
of
Expansion Inadequate
policies
tives' Research
-
thousand dollars
millions
Bond
Seibert & Co., Inc.,
Place, New York 7,
(fabrikoid), $12.00.
Strategic
-
in-
complacency
at
a
near-best effort by the Administration.
Park
N. Y.
THATCHER, President,
-
j°bs. *bis
shedding
Edition
W.
••
tives.
crea^on Df <ixk million new
—
States
1955
M.
National Federal Grain
more
have
ROSENBERG, Chairvc*
Cameo Curtains, Inc.
man,
New
and
.United
families
one
and
MARVIN
--
lack adequate schools."
*iu.uu.
new
—
•
r
express-
plenty,
PENNYBACKER, Pres¬
WALTER P. REUTHER, President Congress of Industrial Organizations.
land capable
a
limitless
below
year,
25
(paper).
Employment remains high, with
a
shortage of clerical and skilled
help.
In some
areas,
however,
surplus
a
in
million
Herbert D.
available.
a
in
Canada
7
comes
cm on
x.
without jobs
almost
than
Security Dealers of North America
tion, Inc., 1424 Sixteenth Street
N. W.,
Washington, D. C.
generally those in short supply or
where
"bargains" have been'
is
v
in.
-—directory of Stock
American Trucking Trends 1954
—American Trucking Associa-
cover-
age
there
Qf
.
,
to
-\r
xoik,
MILES
the allegedly exces-
mg alarm that
President,!
PATTON,
ident Voltarc Tubes, Inc.
is call?d /°r'
coupled with the conclusion that
New full employment depends on the
The
-
Press,
Vnrv
Africa Today—edited by C. Grove
Haines — The Johns Hopkins
ond guessing" to
protect against,
Press, Home wood, Baltimore 18,
strikes or world unrest. With reMd. (cloth), $6.00.
gard to buying policy, there is a
'
trend
have been
Industry,
;
Institute
of
Accountants, 270 Madison
Avenue, New York 16, N. Y.
Oil
JAMES G.
primary
expresses
MAY, 'President,
National Farmers Union.
sive number of breadwinners who
n,
Section, Princeton
Constantin N. Jordan
: York
University
Af¬
Purchasing Agents
are
unwilling to jeopardize their
good inventory position by "sec-
definite
s o
,
Romanian
Investment—(leaflet)
Committee
—
Inventories
there
d
study
:
.
LINCOLN, Presi-'
f
Economic Ad¬
Prosperity Program
concern over
University, Princeton, N. J.
(paper), 200.
pro-
and
u
The
.
(general
—Selected Reference, Industrial
Commodity prices have defin¬
itely moved upward, in spite of
competition
'
-Relations
duction rate.
increased
50c
—
National
ARM AND
;
visers, is availpamphlet under the title
a
KAPLAN, President,.'
American Associated
Cos., American
Factors Co.
Deal
o
Labor.
M.
dent, Farm Bureau Insurance Cos.
for 1955."
of
•
comfort¬
backlog and high
Freeman"
issue
Outstanding Books on Industrial
Relations, 1954—A Bibliography
were
concensus
a
able in
1955
Leon
Chairman
HAYES, President, Inter-,
Association
Machinists,
MURRAY D.
the Council of
Keyeerlin*
ation
Welch Grape Juice Co.
Keyse rling,
Leon
National'
Council, American Federa¬
of
J.
guid-
Fair
,
reporting members, though,
good and there
March
tion
study
of
ance
\
offices, Irvington-on-H
,N.Y.)
;
is that current business
conditions
are
request).
tions—in
utive
The
the
der
(paper),. 35c (quantity
on
T"The
They felt strong¬
in
and
One Worldism and the United Na-
ly that business conditions for the 1
or
Economics
'
Fyp^i
PrMident
President,
Vice-President and member Exec¬
on
by this group,
compiled un-
Section,
Program for
Conference on Eco¬
—
C.
prices
.
company,
not good.
current
"A
the
reduction in
reported a
production and new
Progress.
Indus¬
Prosperity
1955, A
national
Economic
on
A. J.
.
by the
National Conference
w
virT
Pneumatic Co.
ment
nomic Progress, 1001 Connecticut Avenue, N. W., Washington
;
:
However,
who
most vociferous/
r
v
•
the greatest since
are
National
RirHARr)
tivp
-
offered
to the govern¬
-Sociology, Princeton University,
Princeton N. J. (paper), $2.00.
.
items.
...
1
Also, some coverage has
lengthened to take advantage of "good buys" available on
certain
of
man,
J
being
.
Relations
'Department
be-
month
ders
•!—Industrial
ABRAHAM FEINBERG, ChairJulius Kayser Co.
-■
1
new
pro-
posed program to restore full employment and full production is
trial Relations—Sherrill Cleland
scatter-
may
•
Influence of Plant Size
been
i t h
WASHINGTON, D. C. —A
;elaborate examination with a
Economic
—
Commerce
hundred.
coverage
or
When?
of the U. S. A.,
Street, N. W., Washing"ton 6, D. C.—Single copies on
request, quantities, $4.50 per
copper.
n u e s
43% reporting
ah
There is
ed
w
__
1615 H
Buying Policy
last month.
How?
of
sig¬
porting Purchasing Agents oper¬
ating in the hand-to-mouth to 60day range, as compared to 95%
picture,
t i
little
Policy is a little less
conservative, with 76% of the re¬
Produc tion
con
'
vigor
high,
of
or
5
busi-
the
ness
'Chester F. Ogden
being normal
Buying
that
hewed
.
,
How to Double Wages: Who Does
Research Department, Chamber
-
indiis
__
It?
as
Com¬
there
•
A
nificance.
Detroit
pany,
cates
.
Purchasing Agents reporting
of
Edison
in
Executive Effectiveness."
—$8.00.
Of
month, only 8%
indicated
drop in their employment
figures and these were explained
Ches-
ger
areas.
Prosperily Plan Proposed
Economic Progress
on
urges rise in jobs, produc¬
tion, and consumption to accompany balanced
budget in 1956.
Criticises Administration for
"complacency" over prospecti/e
limitation of output to
3% increase.
Review, Box 803-FC,
Soldier's Field, Boston
63, Mass.
Six issues,
plus "How to In¬
report-
are
some
Conference
Business
as
this
Ogden,
a n a
help
in
re¬
in current issue—Harvard
port
any
Chair-
is
man
demand
.
the
Committee,
ter
in
,
Purchas-
Business
mrnmmx'rnmmmm-
well
as
Growth Stocks—New research
rate.
and good clerical
comprise the
.
Association
backlog
A National
C.
crease
opinion
chasing Agents
•*r
comfortable order
a
Place, N. W., Washington 6,
(cloth), $2.00.
son
Report Renewed Business Vigor Cited
41
to
The
BEVERLY
bur
A.
the
staff
ties
Morris
of
Financial
HILLS,
has
Pacific
Company,
253
Drive. Mr. Morris
with
'
Chronicle)
Calif.—'Wil^
been
added
Coast
North
was
to*
Securi¬
Canon
formerly
Hemphill, Noyes & Co.
.
The Commercial and Financial Chronicle
(1170)
42
Thursday, March 10, 1954
*..
I
mind, it is a little easier
who should participate
To my
\Jontinued from page 9
decide
to
in
Current
Aspects of
Executive Compensation
exists, with varying
should
intensity, at all ages and all levels
of management, and a sizable part
of the executive's income goes into
life insurance premiums. To be
sure, the executive is
also con¬
cerned with the possibility of ill¬
ness,
accident
and
disability,
though to a lesser extent since
they are apt not to be quite so
permanent as death and simply
because his resources are usually
should
This
concern
a
total
is al¬
it
supplementing other types of;
compensation. To mention just one
the purchase of individual life
insurance policies by the company
in order to nullify the effect of
the maximums under
the basic
for
—
life
group
program
—
to
serves
show that executive insurance can
happy result from
executive's
standpoint
and
represent
the
produce
employee
loyal
more
standpoint.
No one would dispute the attrac¬
tion of a $100,000 life insurance
policy paid for by the company.
the
from
company's
Incentive
the
liance
incentive
this
on
complete
place
At
most
the
of
ardent
and
their
and
tially
Several
hours
discussing the
incentive
bonus
permits only
their
to
be
a
purpose
reward
of these
the
tion
of
this
After
of
the
be
used
bonus
answered
Who
is
share
be determined?
How
of
provisions
be
large
options
equal to 15% of that salary ,
credited to him each year until >
his retirement at age 65 would, *
fac-""assumin2'the fund earned in vestthe ™ent income at an annual rate of,
that
rep-^eceive+al^°^ ^1|0'0?0.at
can
to
e.Yen annua! rate of
ex-
ahm/P
tp«tc
nianQ TAuarH
ThPQP
exfedsion
tihe
a
hrinLT
of
mcons
™aaa®
ployees
Lr
into
"group"
to
1
more
significant degree, and comare in general reluctant to
the
purchase of optioned
$20,000.
And,
to
small
group.
peiiMuu jiidii ui dunuM d quduer
plans,
there
to
stock
other
are
option
of
types
them
incentive
bonus
plans whose
become
has
almosf' leg¬
solwly over
in
the
of
process
and
the actual
receipt of the benefits
deferred
1S
for
tion
benefits
then
the
current
well
plans
begin
provided,
to
and
bring
closer
If
pensions
in
take
on
aspects
compensation
value
as
incentive
the
terms
time.
of
recognized
are
important element of
an
either
change.
ments
method
Plans
of
com¬
regarded
Nevertheless,
ferred
Revenue Act of
fied
the
tax
the heels of the
which clari¬
1950
of
status
stock
op¬
tions.
As
in
volved
the
of
case
in
stock
principle
value
plans
of
problems
relation
the
on
setting
plan,
many
must
be
of
ferred
have
you
aspects
1 1
IP
their
that
seen
in
and
some
il
than
more
are
consider
briefly
methods
popularly
the
regarded
as
of
of
has
pensions
these
other types
passing judg¬
to
various
up
a
of the
answered
component
stock
same
as
in
option
questions
the
case
bonus plan but I shall dis¬
only two. Who should par¬
ticipate in the plan, and how
large should an option be?
a
cuss
\
ic
is
pniircp
course,
npn<;innc
pensions.
been
onlv
only
implied
to
to
the
tne
tionless
and
onlv
live
only
to
aped
ageci
live
to
and
and
that the
nut
out
incentive
the
tne
amhi
ambi-
incentive
one'e
one s
it
it
that
some
an
of
it
alone
supple-
so-called
a
plan which
or
to
under
non-quali-
is
remaining
remaining
their
the
and
participation
other types
sation.
of
position
is
abie
under
not
faces
When
taxes
take-home
believe
ambitious
future
pay
that
cheaply
energy
low
were
the
young
thought
of
retirement and laid
as
and
high, I can't
even
took
of
but
and
their
some- -
orofit-
time.
- Tf
in
thp
ra<;p
nf
npn_
wi^es
oiono the pomnanv wishes to cover
sions, the company
to cover
a smaller, more selective group so
^
that'^TVeasurv-^DDVoved0'"clan "is
possible, then a non-qualified,
profit-sharing plan may be set
up
Such
a
plan,
although it*
would not be subject to the 15%
qualified
plan,
taxable income
during the accumulation period
and would result in the deferment •
of the company's deduction untile
an
individual's share is paid out
of
limitation
would
in
a
produce
some
future year,
,
^
Individual Employment Contracts
nearly
executive compensation
one
or
the
more
various
the
tax
favor-
as
Treasury-ap^
develop, in effect, a,
program for each
executive individually, the emplovment contract is the vehicle
wishes to
compensation
4-U/\
vw
let
norrT or*
Ipy which the program is carried
into effect. It is merely the means
is
day
-
*
opinion,
versatile
executive
touch
tnis
•
is
one
tools of
comoensatinff
com-
upon
to-
In
mv
profit-sharing
ft
of the
Y
most
management in
its
executives
At
comPensaun% lls executives. At
end of its range of applica-
0ne
tions
are
is
the
plan
.f/j
distributed
many
jf. ™.or„k<A°^ ,op kn a group basis.
jnd^|dUSl'?S
distinguished from
T,
o1v
,
.
aIimWmmp
nrn
relatively cumbersome pro-
i
cedure when applied to more than.
„
-
„
QVQ„11+;xroe
? fe™
it
"districted
to
tPrtHc
a
tr»
rela?
iaci, res>iru.u:u iu d ic a
tively few highly specialized types
'
,
pvp^.tivpc
in pprtain
industries
profits S- executlves in certain i d
.
Wlieie pruillS gmce SQme of ltg tax aspects are
where
currently
or as
company
we
the
the
profit-sharing
plan
under which current
profits are shared but not distributed
until the
participants'
retirement,
and
there
are
all
completely
v
by which executive compensation.
Profit-Sharing
The last type of
•.
of
nlan
oroveri
the
tyPes of incentives I have been
it does in talking
about. If a company
extent
course
the
in
type
of executive compen-
And
as
as
him
because, in its essentials, it is
the nothing more than an embodiment
this
of
company
participants
for
fund could be payable to!
beneficiary or to him at that
problems of the selection of
same
held
type of
desired.
the
hein?
shSfng
I will not discuss the individual
the
of
in-
his company as
expenditure
a
flexible element of an execu-
employment contract as a separate
few executives as
wishes.
This type
possible, others often rank it sec- profit-sharing merges into the
ond only to salary as an indiscentive
bonus
plan
which
pensable element of a successful'have already discussed.
At
executive compensation program,
other
end
of the
range
is
the
tt.r/rbve tota^sum but
attractive total sum but a
a
an
y
very
un-
as
in
nnW
restricted
to
life with
v
by
plan
as
instaiiation
plan
its
produce
can
benefits
t£e
can
for
pensation I shall
Although
Aitnougn
by
represent
then
ef-
pensions
_
compensation.
important
of
these,
Most
fled
major
two
their
let's
Now
current.
of
de.1
:
applications
in¬
parts of the plan itself.
In
generally
are
of them have important de-
not
They
appraising the
effectiveness
in
are
objective.
in
of incentives and in
ment
virtually all
compensation
options
or
encountered
are
in-
those
"deferred"
types of executive
except salary, the
of
of
"current" incentives,
as
pensation
which
has
achieved
perhaps the most prominence in
the last few years is the restricted
stock option plan. This popularity
some
of
means
In
types
plan,
group
a grouo as
covered
that
Treasury-approved
a
com-
my
have
I
major types which
executive
on
in
J
^
not
as
ex-
an
the benefits provided
ment
nans
point
specific
on
feels
provide
executive
p.p.
rension
be
L*rJnrt^entfnot'
his
termina-
or
also
are
of
number
a
And, if death
years.
limited
this
to
,
tive's assets at his retirement. And,
should he die or become disabled
exior to that date the am0Unt
here,
Up
are
Since
..
.
60}]aTS at ^tiremfnt
ThlS' '! f?ms *? me! adds, up to a
ury-approved
addition
"C
million dollars,
this amount could
a
...
that
pay
7hls» «} my opinion, very ecutive compensation plan, but if
options, as a strong execuincentive,
to
a
relatively
0.
$30,000, would
annual
pension of
an.
The $100
say
(?'g management ecutive performanceto future
J™!®6™: Powerful incentive even though
and
r^eivraT^o^llS oOO
SSSuSSlwSSS
av-
pension requires a reserve in the
pension blan of almost a quarter
pames
finance
of,
career
the
improve morale
team
any
.^deration capital appreciation and *
credJts arlsl"? ^ terminating.
co™monP ac<: most half
a
.
well might ac--
f /2jf> whlch
that formula, applied
executive with
an
about
relatively limited applicability, so
I
shall not devote any time to
The
•
hls retirement. If the fund in-
pre-
60"7°% °f T empl°yee'S CTer
produce
plans involving the purchase of a
company's stock, but they are of
cannot
company
down
Stock
plans
to
stock
be
pay
are:
which
•
that' amount accumulates
interest, also on .a tax-free basis
until--retirement; and is further
over,
theless, there are a ,number of
plans which extend participation,
to
a
substantially larger -group
than
would
qualify under- the
In
to the best plan for
up
particular
fun¬
included in the plan, and by what
standards should
a
participant's
payable by the individual on
that 10%'-until he retires.
More-
erage salary
centives.
executive
produce exceedingly attractive resuits. A 45-year old, $25,000 a year
executive who has an amount
income tax
No
is
operate most effectively.Never-
em¬
plans.
assortment
add
still
spent
bonuses, which
rian be a relatively simple opera¬
tion, the basic questions then to
be
within
area
followed hard
simple proposition.
clearly in mind.
his annual salary, the magic of j
tax-free compound interest can
salary, but
be
kept
tive
endary evolved very
a
long period of years
a
determining what portion
company's earnings will
to
em¬
wider
s
must
!
non-qualified
individual's share is limited by
law in any one year to 15% of
company
fectiveness is too much diluted by
the tax requirements of a Treas-
success
par¬
promptly, substantially and in di¬
rect proportion to his contribu¬
tion to the profits of the business
over a given period of time.
The
complications arise in the execu¬
factors
a
The
plans, but time
few observations.
the
longermotivations
other
and
a
i| t h
w
plans.
approximately
employee
an
Jinrv fStpi» firnsIrow fTageand
indicates
fairly narrow today,
f
factors
generally lack the financial ability to exercise their options to
any
development of
loyalty
of these three
accurately at its incep¬
tion except by the merest chance.
aspects of
simplest form,
damental
is
could
various
of
io%
several
for
of
thoM^oe^^a^^^aT^i^ibutron
constitutes
and
of
tr™™b?nat?„n
v
Although, in general under a «
Treasury-approved plan, any one »
is
management
set
incentive.
deferred
calls
contribution
plan
stock
will
fundamentally alike, they can take
an almost endless variety of forms
from
which
one
liberal
a
definitely limits the usefulness of
tives of executive bonus pians are
In
the
as
What
plans
the whole gamut
that
'
spirit and as a means of
binding more employees to the
company
through stock ownership.
However, these employees
retreat
concept of
management
cessful
of the whole program.
Although in general the objec¬
run
a
such
are
the economics of
relatively large group
sure,
covering
tives, however, and figure promi¬
nently in some of the most suc¬
claim
strictly current to at least a
be
effect* is
a
theoretical
part
and
compared
To
ployee ownership of the business.
These are also important incen¬
than that they are a very impor¬
tant
a
manner
concerned,
incentive
ployee
is
bonus
deferred,
for
more
no
is
recognition
a
methods
current
of
management
represents
the
current
companies
utilize
other
of
compensation, both
These
"top"
payment
from
do.
to
supporters
size
the time and
as
payment
its
of
the
to
variance from the immediate cash
re¬
it
at
tendency
the
As far
a
sometimes
*
.
respect
level, bonus payments sometimes
equal two o^r three times the in¬
dividual's salary, with the aver¬
age in the neighborhood of 50%.
This
average
drops about half,
down to approximately 25%, at
the "middle" management level.
Vet the most successful companies
are
the first
to
point out that
not
in¬
the
of bonus plans and
for their failure.
tive.
executive compensation
judging by the success of some
of the companies using them. And
do
tion.
criterion, the total op- ecutives in the year in which the
tion price under a stock option, contribution
is
made, and
can
should
represent
several
times produce a very handsome income
the
salary of the optionee to at retirement.
make the potential
gain an ata plan providing a benefit of
share, there is substantial
agreement that it must be at least
10
or
15%
of the participant's
salary to be an effective incen¬
types of
they
method of executive compensa-
a
tice is any
bonus
all
of
effective
most
be very
between
than
profit-
As in the case
of pensions,
profit-sharing involves the question
of
Treasury-approved
as
Treasury-approved
effective as
a
cannot
resenting less than two year^Vreaent^several times "that in
salary. If, therefore, current rpcaij-ctax dncbme to high-salaried
care
probably the most common rea¬
With
Incentive bonus plans represent
of
and
impair
seriously
I
such
one
time
the
take
term
Plans
Bonus
to
son
a very
a
-
on
basis
years' salary to
participants
centive value
possibilities
valuable
leave
does
area
plans
as an
ual
viously
costly.
executive
option
represented
is
the
the
adequately
to
judge
each individual situation, can ob¬
plans, however, do not
often fully meet the needs of the
individual and to do so would, of
within
compensation
Secondly, the individuals participating in the plan should be
at a sufficiently high level in the
company to be able to recognize
par¬
deferred
of
appeal
sharing is the ability to accumulate an estate or a retirement
fund — goals which are virtually
cated
that
the executive
group impossible to achieve adequately
is not unduly favored. It is often on an after-tax basis out of cursaid that for this reason, pension rent income.
standpoint.
necessary
Such
But
the
executive's
standpoint,
we
already examined the advantages of current plans.
And
have
the group for whom pensions are
to be provided must be
large
enough and the benefits so alio-
attractive fea-
most
rom
five
ure
surance.
prohibitively
f
The over-appraisal or under-appraisal of the contribution
of such executives, through fail¬
two
be
its
of
one
tures
ings.
end of the scale — and to
relatively modest benefits in the
case of sickness and accident in¬
course,
the
tirement
more.
or
rectly to influence company earn¬
upper
'
approximately acted for the tax benefits is that
of
...
years' salary —
maximums applying to the
with
provide for advantageof accumulating reincome.
The price ex-
the
means
today,
attractive incentive and to be able, by their own
purposes has successfully resisted
precise yardsticks and formulas efforts, to have some effect on
with the result that in the last the company's prospects.
Finally, they should have the
analysis, and it is so in the case
of the most successful plans, all personal financial means or the
or
a
to
borrow what
they
part of the person's share capacity
is determined by a management need to exercise the option; and
judgment at some higher level. this leads into the question of
This
is time-consuming and in¬ how large the option should be.
creasingly difficult as-the execu¬ A recent study showed that there •
tive to be judged gets farther and were more options in which the
farther away from an ability di¬ total
option price of the §tockr
in general practice in the
group
insurance programs com¬
monly in effect in industry. For
the most part, however, the bene¬
fits under these programs are, in
the case of life insurance, limited
or
is
ecutives, the appraisal of an in¬
dividual's performance for bonus
ready
one
and
ous
personal
over
Otherwise, he
receive no capital gains benfrom the stock option which
efit
ticipating in these plans. Except
for those few profit sharing ex¬
pensation.
to
frequently
employees
this
in
with
of
family man
our
children,
will
efforts di¬
of
case
tween.
52%.
individual
salary,
a
combinations in be-
of
manner
basm mo-
through on it has been seriously
impaired.
The tax laws now recognize
bracket
tax
means
$40,000
to
influence company earn¬
ings, then the number of execu¬
tives participating would usually
be far fewer than the 3 to 5% of
com¬
This principle, of course,
the
rectly
very use¬
executive
instrument of
limited
is
those whose individual
varioug types of insurance
have been found to be
when
and
or
that the
tivation has changed with our
income tax laws, but certainly the
ability of an individual to follow
option
should be,
potentially within
the next few years, in a
This
believe
From the company's standpoint,
the beauty of profit-sharing is
that the ooligation to share profits exists only when there are
profits to share, defined and limited in any way it wisnes. From
bonus
the
income
away
do 1
plan than in
plan, for in-
option
First of all, the
presently
two
participation
If
provide for every
contingency to the fullest extent.
However,
important
they
are,
salary and other current cash in¬
centives
usually
stop
with
or
relatively soon after death and to
a
lesser extent, after permanent
illness
or
disability.
For these
ful
paid,
be
stock
getting
should it be paid?
not sufficient to
reasons,
it
incentive
stance.
bonus payment be? How
a
a
an
against that day. Nor
thing
deferred
,inPprtain
it
should
be
verv
care-
funv drawn wherever used,
Conclusion
The
various
brief
description
of
the
major types of executive
compensation which I have been:
able to give here shows clearly, I?
that most of them offer
definite
attractions.
But
which does a better incentive job
with a given number of dollars :•
think,
very
Volume 181
Number 5410
The Commercial and Financial
Chronicle
...
(1171)
for
I
particular company, neither
a
nor
anyone else can
predict with
degree of certainty except in
any
extreme
cases.
us
How,
then, is the
individual company going to de¬
cide
on
effective
an
Both
of
that
sense
made
those
some
its
are
for
executives
in
combination of ways.
part of the answer lies
way or
And
only a
keeping
dollars
in
mind
to
be
are
just
which
considered
Indicative
of
tone that has
the
been
speculative
growing
more
sas
been
activity in the
considerable
com¬
of
stock
mon
recently
Texas.
-
the
Missouri-Kan¬
The
price
has
ad¬
out that there has been
effective way to spend those dol¬
lars.
Or, if we're talking only
cient magnitude, and no spectacu¬
lar change in the
sition
in
the
50,
age
doubt
but that
form of deferred
compensa¬
tion would represent the most ef¬
fective choice. But this
only takes
of the extremes.
leaves
the
the
tain
to
trying at
himself at
prestige
to
once
level
a
his
of
furnish
lower-paid
younger,
executive is
ground,
sus¬
which
position
his children
the
requires,
educa¬
an
tion, to provide for all the con¬
tingencies of the sudden cessation
of his
earning
timely death
through un¬
disability and to
power
or
that
here
that
the
lines
become
fuzzy
last
of
individuals,
satisfied
needs.
This
think, for
of
a
respect
wholly
to
all
his
I
balanced distribution
March
is
21
true
in
the
them
after
salary has been adequately
provided for.
ing of all
Certainly the load¬
executive's compen¬
an
sation
into
salary plus a cash
bonus doesn't automatically prove
that
he
will
thereby have the
greatest
Not
ance.
his
possible
effective
more
if
failure
set
aside,
he
is
out
perform¬
of
his
of
to
plagued
lack
or
the
come,
incentive
future
by
ability
to
in¬
current
amounts
to
necesary
discharge his future responsibili¬
ties.
A
certain
amount
of
"dis-
contentedness,"
in the form, for
of a tie-in of compen¬
profits, is good, but if
example,
sation
the
to
uncertainties
traction,
that
become
a
dis¬
obviously
is
not
good.
Nor does
the
opposite
ex¬
treme
provide
the
answer.
A
complete
saturation
of
wants
is
obviously not feasible and just
undesirable
point
from
as
incentive
an
view.
of
opinion, it is only by the
of
process
evolution
that
to
achieve
between
improved
the
and
effective
an
the
direct
current
less
balance
incentives
to
performance
direct
but
vitally
important incentives to increased
loyalty
est
and
strong self-inter¬
the long-term performance
in
a
And
what
bination
the
is
"right"
of company
test
changing conditions
period of years.
This
the
are
is
the
seems
only
have
to
companies
models
in
over
with
for
practices
field.
J. T. Grantham
JACKSON,
Grantham
rities
is
M i
the
designed
stock.
For
accrued
s s.
engaging in
—
a
J.
secu¬
business from offices at 554
Fredrica.
re¬
consider¬
be
neces¬
if the plan does
go
even
to
with
appear,
earnings
a
year
just
as
of
class
"A"
to
common
are
share in
new
Robt. Weaver Is Now
the
same
ferred
stock,
of
not
be
will
be deductible
income
be
great
so
taxes.
to
earned
but
be
good
years
will
interest
the
before Federal
dividend
shares
of
interest
will
of
entitled
"A"
to
as
a
75%
the
ex¬
will
the
be
amount
and the common, outstand¬
ing at 808,971 shares, will get the
remaining 25%.
While the plan does have the
advantage of doing away with
preferred
dividend
arrears
and
Robert
Robert A.
19
the
the
executive
Co.,
70
s'aff
2%%
of
vide
gross
This
annum.
for
City,
sents and
after
income
deducted
to
needs.
bond
pro¬
Coming
interest
but
1%
of
gross
of
for retire¬
revenues
the
income bonds, and a
sinking fund for the "A" stock
equivalent to 5% of "Available
Finally, if
paid
are
on
must be set aside
sinking fund
25%
an
any
divi¬
the stocks there
as
equal to
of the dividends paid.
its best postwar year
"Katy"
reported
net
income
of
roundly $7.5 million.
Had
the
plan been in operation at that
time
there
$2
would
have
million,
bonds
on
leaving
a
$851,000,
come
de¬
$5.5
Con¬
Security Deposits.
to
$4,-
Excellent
to
access
raw
materials.
Special educational, efficiency and incentive programs.
initiated
in
T.
Company with offices at 711 Main
to
conduct
securities
a
business.
SALT LAKE
name
been
of
G
Atlas
changed
Moench
&
M
Securities
Building,
to
D.
has
Richard
Co.
As
an
indication of the
success
Goodbody Staff
Since 1949 man-hours
Installation of
efficiency.
Ohio ports.
PITTSBURGH, Pa. — Investors
Planning Corporation of Pennsyl¬
417
Jordan,
Grant
their
Alfred
Street,
staff
E.
have
James
A.
Hamilton
Jr.
and Albert J. Bachner.
Rejoins Hooker & Fay
CAR MEL, Calif. — W. Dee
Scherman has rejoined the staff
of Hooker & Fay, San Francisco.
Scherman
has
recently
customer per annum
one
of the best meas¬
new
is completed in 1959
or
1960,
over
The company's service
area
should continue to get at
1% of the population and 2% of the industrial capacity. Part of
the Lake Erie shoreline is fast becoming known as the "chemical
short" and these existing plants should attract additional ones.
on
1954
increase in
were affected somewhat by the industrial
half, kwh. sales being down 4%. However,
residential
revenues
more
been
with Walter C. Gorey Co.
2%.
than
offset
the
While share
in¬
earn¬
ings declined 210 from
1953, this was due to special accounting
Excluding the effects of interest during construction and
items.
1954
vacation
1954
income
tax
new
accrual for
with
code)
two
tax
years
earnings
per
purposes (which in effect charged
vacations, as permitted under the
common share in
1954 would have
been up 190 from 1953.
The rate
of return
capitalization in 1954 was 6.06% com¬
The Ohio law permits reproduction
(net) as the rate base and while this is not technically put
into effect, it allows some leeway in the rate of return when the
latter is figured against book cost or capitalization. The classifica¬
tion of accounts under which the company operates does not re¬
quire that it ascertain "original cost" as defined in the FPC uniform
pared with 6.25%
in
on
1953.
cost
system of accounts.
Mr.
em¬
least 3% of the nation's industrial expansion although it has only
the 9%
Three With Inv. Planning
to
management and
per
dustrial dip so that total revenues gained
ATLANTA, Ga. — Walter S.
Hay, Jr., has been added to the
staff of Goodbody &
Co., 45 For¬
syth Street, N. W.
added
of the
generating equipment has
improved coal-burning efficiency 23 %.
Had the company operated
last year at the 1949 coal rate and with the same man-hours per
customer, share earnings would have been $2.39 instead of $3.86..
Regarding the future outlook for the company, Mr. Besse
pointed out that the service area is truly "the Land of Promise."
of
Earnings
(Special to The Financial Chronicle)
vania,
the
for
ployee programs the number of employees has decreased 12% in
the last five years, though plant is now 57% larger- and kwh. out¬
recession in the first
Joins
million
90% of the world's merchant fleet will be able to reach northeast
CITY, Utah—The
M
$1.8
about
saved
When the St. Lawrence Seaway
Now D. R. Moench Co.
earnings
(11) An Aaa bond rating.
ures
HOUSTON, Texas — Montague
Triggs has formed Triggs &
Street
has
1951
have been reduced 23%—this is considered
The first general rate increase
in
the
com¬
pany's history became effective Feb. 9 this year. This will add
nearly $3.9 million to 1955 revenues, and after allowance for taxes
should add (on a full annual basis) about 560 a share.
At
the
recent price arcund 701/2, the stock yields 3.7% and
price-earnings ratio of 18.2. However, the year-end 1953
earnings adjustments noted above, the improved industrial out¬
sells at
a
look, and the current rate increase would seem to indicate a sub¬
stantial gain in earnings for 1955.
No equity financing is antici¬
The board of directors recently voted to recom¬
pated in 1955-6.
in¬
interest
completed will make
continent.
(10) Teamwork and efficiency methods have definitely paid
financially. It is estimated that the Work Simplification Pro¬
gram
Two With
McCoy Willard
(Special to The Finance** Chronicle)
mend
would have been
BOSTON, Mass.— Pilgrim A.
fund^ requirement of Tommasino and Robert M. Tong
bringing the total de¬ have joined the staff of McCoy &
prior to the stocks to Willard, 30 Federal Street.
splitting the stock 2-for-l
stockholders
April 26;
no
this must be approved by
policy following the split-up
and
dividend
has been decided
as yet.
Cyrus S. Eaton, well-known Cleveland financier, has recently
the company's largest single stockholder.
Stockholders
There
sinking
ductions
new
which
requirements would
669,035.
been
when
Seaway
company.
&
(Special to The Financial Chronicle)
(1952)
off
York
additional
an
amount
St. Lawrence
put 40% greater.
from
the greater of
$2,000,000 per
before any dividends on the stock
there will be a sinking fund of
ment
Squires
Form Triggs & Co.
bonds
intended
capital
and
available for
income
or
is
of
Street, New
Solicitors of Proxies,
Company,
be
Securities
Pine
to
funds provided in the plan make
this possibility quite remote. In
earnings
-?
11 of the nation's
(3) Central location—within 500 miles are
largest cities and over half its population.
Weaver
Weaver, for the past
with
years
A.
Exchange Commission, has joined
firm
theoretically opens the way
common dividends, the various
reported
*
capitalization and depreciation
Conservative accounting,
(9) A fully funded pension plan—in future years
frorri pension funds may reduce charges to income.
thus
the
30
Vice-President
(common stock equity is about 44% and the depreciation
about 27% of gross plant).
reserve
(8)
any
paid
income
54
turnover.
667,005
class
of
2.60
A fine labor market, thoroughly trained personnel, and
excellent management-union relationship, with very low labor
only
On
5%.
distribution
107%
/
(7)
just
comulative
maximum
a
„
Relatively young top management (average age 51).
(2)
(6)
re¬
mandatorily payable to the
tent
$ 2.50
$93.00
$ 3.86
2.00
—______
% Increase
1954
•
Cleveland the transportation crossroads of the
share for
company
The
1945
$45.00
(4) An unlimited supply of fresh water from Lake Erie.
old
interest
as
va.
:
Dividend Rate
$60
will
the
on
(millions)
Earnings
(5) The
one
the
of
in
but
drain
Share
15
on
the
...
reserve
the aggregate annual
the
present
pre¬
as
dividends
has had an excellent postwar growth record as
following comparison:
Revenues
(1)
Squires & Go.
par
thereon
The company
indicated by the
Ralph M. Besse, in a recent talk
before the New York Society of Security Analysts, mentioned
some of the "unreported assets" of the company, as follows:
issuance of $93,380,700 of new In¬
quirement
'
*
of World War II the company has
end
adjustment clauses.
stock
stock
The
is somewhat above the national aver¬
spent $237
million to virtually double plant capacity, which is now 1,564,000 kw.
A 140,000 kw. unit was completed in September, 1954,
and a new 208,000 kw. unit is expected to be in service late in
1955. The company plans to spend $160 million more in the next
five years so that by 1959 capacity will exceed 2 million kw. Coal
represents the principal fuel used and rate schedules have fuel
Since the
Executive
value com¬
This plan will involve the
bonds.
use
and kwh. revenues below the national figure.
age
January,
nominally
elim¬
and
receive
$10
electricity fur¬
and steam the remainder. Electric reve¬
residential, 14% commercial and 47% indus- 1
revenues
Annual residential
trial.
.
holders
bonds
Holders
proud of its
one-fifth of the population of Ohio.
—
about 31%
are
nues
yet
ago.
With
served
through.
$140 face value of
income
value.
come
T.
to
their
million available for the
Opens
interest
if there is to be any effective
earning power for the common
junior
dividends
receive
ducted
I
is nothing
would hold out
is
5%
a
"formula"
purely
plan
to
are
In
worked
whose
the
of
performance
under
which
com¬
out
emerge
net
inate the large accruals of unpaid
dividends on the present 7% pre¬
dends
the
will only
the
Obviously
improvement will
the visible future.
Net Income."
of the company.
half of
begun
been
to
there will first
"right" combination for a
given company can be developed
than
quirement.
This improvement has not
re¬
there
that
extremes
the
Last
reported
company
are
The company serves nearly 490,000 customers,
sary
which
has
as
on
slow
share.
a
at
If this
interest
achieved?
less
above
at
be
indicated
lion for capital needs there would
remain for the new Income bonds
a
balance of only $2,020,000 or
begin
arriving
In my
$0.50
new
income of $4,020,000. If from this
there were deducted the
$2 mil¬
to
How, then, can
the proper balance between these
.
the
market
over
The
about
year
1955,
promise
equity
only
be
the
stock
a
on
rise
plan
would
common
of
been
country's industrial region, and has
The service area includes not only the
the
City of Cleveland (in which it has some moderate competition
municipal plants) but also extends nearly 100 miles along the
shore of Lake Erie and covers 1700 square miles. About 1,750,000
nishing 96% of
potentiality
Illuminating has long
of
from
dend
hear¬
psychological
much
nothing
stocks.
the filing
by
of
Income."
been
Electric
the heart
in
advertised this fact widely.
people
Washington.
in
the
come
among
C.
scheduled
are
mon.
logically,
argues
incentives
basic
group
be
can
with
C.
ings
par
a
generated
I;
plan
indi¬
no
Net
have
location
Even if adjustment were made
that year's earnings for lower
tax accruals the
effective divi¬
able
seems
adjustment
share
analysis,
nothing of
say
it
would
in
some
'
possible
speculative enthusiasm
the
new
the
had
subsequent
on
been
lies.
In
.have
may
some
with
stock, according to
^figures, and it is felt
Also,
ferred
vidual, to
the
bearing
that
pros¬
advance.
substantial short po¬
a
this
and
the
compromises
must
be
made. And it is here that the bulk
of the average company's
problem
change
of suffi¬
this
warrant
15
action.
accumulate sufficient reserves
against his future retirement. It is
to
Feb.
has
"middle"
no
earnings
$75,000 which the
is deciding how to dis¬
over
Analysts point
earnings picture
executives
to
where
the
was
excess
some
It
in
pects,
in
there is not much
care
times its 1954 low.
There
dollars
over
company
pense
sharply and last week the
was
selling at about four
stock
of
the
"Available
available for the
has
question but that the provision of
an
adequate salary is the most
salaries
just about equal to
or
There
there
vanced
about
the
insistant in the railroad
group of
To be sure, if
they are the first
dollars of compensation to be
paid,
then
there
is
not
the
slightest
$5,520,000,
stocks,
in
given situation.
any
Cleveland
has
available
Cleveland Electric Illuminating Company
Missouri-Kansas-T exas
dollars in
company
dollars
compensating
By OWEN ELY
deferred
same
the
Utility Securities
itself?
compensation
competing for the
the
for
program
current
and
methods
Public
executive
compensation
in
43
become
will
so
as
be
asked
to
increase
the
number
of
to include Mr. Eaton and Mr. Besse.
directors
from
9
to
11
r>)
44
The Commercial and Financial Chronicle
(1172)
10
Continued from page
r
>
.
to
\
rr\
M.
The New Military
-
PUn
A
Idll
A
Reserve
m
—
Clan
IllYI I
AW^ITn
I
l#lv|J
lUnwIU
the process of screening
military needs. But H. R. 2„67, bty
providing for miltary control and
operation of the screening, de-
TV Iff ffl
t
We should like to emphasize Continued from
this Committee that we ap-
prove of
V if* A,
stroys the value of the screening
units filled on a voluntary basis, process> yes, some provision is
why cannot all units be filled that made for gome type of civilian
way? We do not think the present consultation, but, in the last analvolunteers fail to join, H. R. 2967 incentives would fill even
Na- ysiS) tbe decision is left to the
provides for drafting enough ad- tional Guard quotas on a yolun- miiitary.
dftional men to fill the quota for tary basis, but improved jncenstand-bv
reserve
is
the 16 months' training program, tives, we are certain, would fill
.
subiect to reca'l
bv
in addition to filling quotas for all quotas without compulsion.
military
as
I understand'the
selective service for 2 years.
An
interesting
Constitutions
y
/, How will a draft board explain question is raised in the minds of
control screening
assignt«t it chose one boy from the some lawyers by
the tollow.ng would
™glng,d_a.s.gn_
north side of the street to serve provision of the bill. If the Nag
,
as the reea'l to ac-
in the first
year and up to the 350,000 in 1959,
all be volunteers. But if enough
the
trainees
100,000
eomro^
t.onal Guard cannot f. its quotas
with volunteers, the bill provides
for 2 years in the armed services
and chose his friend on the south
side
of7 the street for 6 months''
59wlCel«f
We just
rannnf
cannot
trailing program and the selec-
be
would
fair
Plan
found
is
would
we
to
service
continues
and
ported
has sup-
long
an
Pf1^
itli
detml
in
m
the
the
frrim
from
National
National
unskilled
yf
;4perSnce
Se
be-
We
the
think
°few^1vearsS aeo"
a
acceptance
4
have
for the first time in
our peacetime history, with up to
10 years of military training.
We
cannot
believe
that
Congress
serious consideration can be given
io the establishment of a com-
would accept
such
like
should
I
These and many other such inment, must be thought through
far more, carefully before even
refer to
mental
111
some
Miniml,m
of funda-
in
the
oaid
onlv
w
$30
r
f.
gram:
shall
Trainees
en
month.
per
violates
basic
a
^and
equal
month
can
be
similar,
We
Plan indicates.
for
violating
such
ciple of equity.
far
as
see
a
We
no
.
.
nrn^i4!« nf^
m
J^ntt?
7reserve
f
dut
and
six
and
...
„
w
and
J*
active
or-
being piaced six to
were
in
12
estimated
of
advance
healthy
think
new
it
will continue a steady,
operation.
We
do
not
backlogs and
likely that
orders will drop from their
level.
Companies ulti-
present
and
consumer
goods
aconstantflowof
to
replal
that
reach
of
eet-
mlr-
in
consumers
d viduals
1n
their
eood
'
* speak from personal experience when 1 tell you that one of
these finance companies, which is
tyPlcal of the whole inqustry, has
financially helped a wide range
of small businesses engaged in
such diverse manufacturing fields
as books, office supplies, shoes,
cosmetics, plastics, lumber, phono-
fraPh ^€CS>rd/?'
^
food and food products,^,a x e s,
jewelry, raduo and tolevision,aii£
craxt, sporting
Pane &s>
bathing suits,
cleaners. During World
yacuui?
11
War
we
also financed many
uJ^uJ^
yoca
Unlversa} M r11.t a r y
The finance companies of the mass credit mass production
ramln& to accomplisn their first nation are considered an extreme- would be impossible. It is ma^s
step toward instituting UMT. For ly accurate barometer of prosper- credit that has built the automo;he fir?t tm?e ,ln our ,natl0n s his- ity. in no other country in the bile industry. In 1900 there were
lory, America s youth would be world is consumer credit used as only 4,192 automobiles produced
saddled with 8-10 years of mili- extensively as in the United under the prevailing cash sale,
,^S"V1Ce'
,
/g)
States.
.
As
a
member of the one-car-at-a-timepro due tion
Canadian boundary to the tip end method of purchase the automo-
two years'service.
Instead
of
minimizing
cMlfan actlvite"
its
the
of Florida and the Mexican bor- bile
<ier, I am in a position to keep can
plan vests control of the lives of current on the borrowing habits
some five ^ six million Ameri- of the nation through statistical
can youths in the military, while a»d operating data coming to my
yo«ng men
are
to civilian desk. Buying with credit is inPursuits.
creasing. Figures for December,
we
rose
to first place in Ameri-
industrial
production
and
came to bemo longer regarded as
a luxury but a necessity. Cur-
rently, production of automobiles
nnnn
J^rlSanctag
Sh^^'^0WlngS-at U1^ beCaUSC 0f »S e«ect in creating
individual
who works
on
mittee in
•
early
1952
during.the
would^e^not and everjdhi'ng eise in the market ^1947,'Tetailing at'an'average
JaTm^! °.9 the recommendations
Jj- the National Security Training
Qnl
any
reserve .program to keep civilian
forees than the
dequate
supoorf
Commission, it is essential in
DOsed in jj
but far,better able
our
j>
regular
reserve
-
-rmpH
fnrre
9267
...
nm_
-
PlacesPeople do not go into debt un^ess they can see a way ahead to
Pay off tbat debt. That is one of
the most -interesting characteris.
,■
,
...
,
.
,
.
when
money
\vho works
in
another,
the day
man
shift will
collect for both?
;
What happens when
a man
,
inust
mands economic
as
well
as
mili- *
tary strength.. If this premise is
true," we .said, "how can we guarantee
* ine lssues ln'tnis blli high rate, of personal income,
„
Wl11 Slve 1/16 Congress
reasons to
reject this piece of legislation
and
economic
however,, made this burden relalively easy to bear.
All the finance companies l am
-strength' when. to. urge -Vhe Defense Department
such.. :a large, part of the work •
Dr„oam
ajAnnaia
associated with look for a rise
force would be at the beck and
epare an
reserye in consumer debt in 1955. It is
duty- during this period, or will call of the. military?" Under this ^lraiIiing grogram consistent with
expected that consmer debt "will
t-iere be some provision for conproposal, during peacetime,. 3 as a civilian: controlled government, reach an all time, high in 1955.
go to camp for two weeks.
Will
he receive only the pay for active
.
f .p
"adequa.te
.
i
ohmtf
f>ne>n
*
tvm
I
«,Ppuc
!
unjust
f many as 5-6 million or more.
thY Am®rican1 youths will be subjectp
AJJc* ct
^ ? the. selection and direction: of
Larr Adds to Staff
military* The proposal vests
(Special to the Financial chjjonici.f)
control exclusively within the ' DETROIT, Mich. —Russell
*
_
.
provision
.^would nil National Guard
t-
outlook
lenders we
consider
uiaciuiers lnaiiecuy inruugu tuu
sumer installment credit. Without
...
Consum r Cred t
3
responsibility for recall pf. reservw
'
lsts' just as the responsibility for .
® ur8e >nis committee and tics of the American people. The
compelled to lose his pay and the selective ♦ service' system is ™.con ress^to look beneato the American p u b 1 i c, a composite
t'me from work? Will he receive now: in Civilian hands.
;
/
°£ the presentation of the group, of 160 million individuals,
only the rate paid to trainees in
At that time, we said, " 1.
that ^Pr°Sraip. I owed at last-year's end over $30
the reserve? Is it fair for him to modern warfare apparently
de^-^eiui examina- billion in consumer debt The
units
As
we
Retailers are opei*ating with minimum stocks on
.
m
p.m.-to-midnight shift has
to attend a reserve meeting. Is he
pe>t
Their
well
good
and
May and June.
sirable situation.
regerve
.,
____
4
lose
luink
en
are
(2) Attendance is required at
meetings without adequate provision for compensation. Assume
the
js
goods, china, profurniture, candy, boats,
tetag Wtehen electrical app 1 iances
are
new
When they do well the
does
1955
*or
dav at the expense of our
per
an
ago
years
nation
is running at ai rate which^would
produce more than -8,000,000 new
^7* J}"18'
We
therefore
oddosp
the
generally considered the peak cars this year if the pace is mamactment bv this Concress of H R
month of the year in the personal tained.
for the en- 2og7 instead
call
thi«
and consumer loan business bej stress the importance of coneetthe Defense c?use of immoC theu Christmas season,
to urge
in talking of 1955
^7
r
jj;..\
18-year olds.
Surely resentment
Cgainst such inequality would be
destructive to morale.
that
These
milliQn companies are the real
small companies engaged wholly
4a^°Q1i/
SlX
in war work.
two® yTars of actfvl their sheives. This is a very deOther f i n a n c e compante I
^^^0^1,7^
man
two
wil]
P^ograjn will not be developed
cMlia' X 0thers for
reason
<ir
I
shipped out of their own warehouses. Orders being placed with
*
A sound military security
country have
.
L
basic nrinshocked
A
our
employees or fewer.
seven
,
rSerw unit®
vhe
as
,
.^HuJvPivfn +4
jbase pay of $75 for a private in
the army. The duties, in the main,
would
.,
,
hv
that
the country
tion
U1
bagig
on
attain: "equal pay
work."
The $30 per
be contrasted to the
derg
Sdise
Esse„tial
on
by
mean
shipment Within, say 30 to 60 days
at mogt
A year ag0_and more
(2), We tnforo,ughly supP°r. the Tna
t
its impact on ci/iiian activ
striven years to
and
mately distributing both produc-
reserve program,
a
t.
operation in
Activities
iteb^bact
This provision
orincipie which
unequivocally oppose
compulsion in the de-
figures^
;n
rhs Pr0£ram conta ns many Board of Directors of eight sepa- system. By 1925 there were l,7UU
built-in inequities, nol the least rate finance companies operating companies in the United States
,.a
P}an s e"ecJ important of which is drafting on fta composite basis from New financing installment purchase of
diametrically opposed some raen for six months and York to California and from the automobiles. With this new
.
+VOl+lr be
Imerlcan iboPr^^Sovemem has
for
,mpa.t
Civilian
pro-
be
importance
force.
reserve
of
tit
„
provisions, in our juag-
a program.
to
other inequities
the
of
use
Carried to its
i°rces.
pulsory
We
the
withou.t the abil-
regerve
equitable
In conclusion, I should like to
summarize some of our major
concerns in regard to H. R. 9267:
without
iaeqibtable provisionfor 6 months'
training would permit advocates
of UMT to get their foot in the
door. And once the foot is in, w.e
have burdened the young men in
this country,
shipment,
immediate
for
request
a
effect would be so far-reaching date of shipment
We interpret
that the impact would seem al- this inventory action to mean that
most maximum.
manufacturing facilities across
ready re- velopment of
who
ity to be an important striking
force to supplement the armed
this
of
so
or
ultimate extreme, the provision
could mean that we would have
rea
cmmpndSionsg
3,
men
and
combat.
never
onlv
differs
Plan
2,
ultimately lead to a
ggj».yd
objective by instituting a
Universal Military Tra.mng pro-
basic
Rpenrvp
of
individuals could
be
excused from the ready reserve
and assigned to the standby reserve. while there is some
merit in this provision, it could
Service than to
ourselves to be diverted from this
lective
Secretaries
the
-service,
years'
through Se-
for military security
if
Because
n0Hljc
structure we practically
for granted. From the 1950
census -figures
we discover that
buslnesses
X
is made
coming in almost invariably
months
a
building
fabric out of which our economy
are
l
becomes
the prosperous eco-
credit to small borrowers
vent°ry requirements. Our orders
with
mi"ee'
It may surprise many of you
to learn that small personal loans
from companies such as these I
am talking about have been the
foundation upon which man y
large businesses have been built,
Small personal loans in many
cases are the sole source of credit
available to many busines^meri;
you
can
see
how important
buying cnly to replace basic m-
ing for "a minimum impact on
essential civilian activities." The
decide.
armed force for the
security of the United States.
We think it is far more important to maintain our armed forces
taming
a
I am closeiy associgted r^rt that xmr customers are
particularly
specialists,
there is need for main-
as
manufacturing companies
Plan's stated objective of provid-
on
combat veterans or
the Selective Service program for
business men were still adding
to existing inventories at an annual rate of $5.4 billion. By the
end of 1953 these same businessmen
were
cutting down their
inventories at the rate of $4.2 billion a year. During 1954 this inventory liquidation continued at
about the same rate. Now factory
inventories appear to have settled
at about $44 billion. At this level
business was good last year. No
liquidation of inventories appears
tt* next
****** *r
lonSer- This is indeed a healthy
uni-
individuals
of
proposal
support
to
*
y
...
that
We feel that these proposals
the contradict the National Reserve
shorten
to
life
■
Business and the Investor in 1955
The
basic
the
to
Americari
f
P s
which P
men
some
nciple
.
4APP
■
■
10,1954
-
.
V
»1
1
6ign
na-
Thursday, March
11
page
m
Practica'ole
bas s.
This
could
niean excusing
highly trained
formiy
In fact, the CIO
course.
«4t<> ac
whol/mn
lives of the youth of the
contrary
inequity
provision
a
authority
broad
and
Service,
Selective
m
excuse
certainly do not advocate that
eliminate
'the
from
the total period of service.
The
Service Secretaries are gianted
t<.ve!service program—can operate
simultaneusly without causing injustice. The only way to make the
Reserve
Gua^d
tte^
NaBonal
tne National uuara.
(4) Another possible
how
how two
two
the reserve
w
—
The
'
see
separate programs
JL
.
...
reserve
quotas with volunteers and
military.. We
think
ch
s
tern
a
sys-
is unwise and contrary to the
aims and objectives of democratic
de
Kar$kv has
...
.n
become
m
We are 'laying plans in each company to raise additional money
from the public, or from insurance companies or from banks to
E. permit an increase in the-outassociated standing loans of these
compan
u
+
hies this year. These programs of
of
$500 to a production in 1950" of
71^ million sets with an average
price Gf but $316 for one of the
better sets. The TV industry from
artists through networks to rer
tail set manufactuers and retailers. has become one of the big in.dustries of the country and a prop
tQ the basic economy.
Electric
ranges
and
refrigerators, . deep
freezers and washing machine are
impor.tant too—in the same way.
.
V
Signs Point to Prosperity
*
Indeed all the uoutward, isigns
point to a continued period of
prosperity for. our country. - Two
factors, however, will haver in my
opinion, a very important influence
in permitting this projection
to become a reality. The first fae*.
tor, and one which is not wholly
wRhim our-power as a nation to
control, is the factor*of war;-We
are k peaceful nation. All of our
& Company, Penobscot
expansion are based upon a eon- leaders decry war arid we have
w" xTnl^s quotas with draftees, life as vve know It Inethe. United Building, members of the Detroit yiction that 1955 will be another been;severely criticized by many
I u the. National Guard
can
have its
States.
,
...
t
.7
"Stock Exchange.
year,
of progress and growth..
.
>
other nations in the. past^ because
Volume 181
Number 5410... The Commercial
and Financial Chronicle
(1173) ' 45
U
.
.
i
.
have taken steps,
'we
dom, to aviod
not
fully agreed
ident
against
I
know
of
cause
others.
factor
it
of
be
is
by
the economic picture
When I
able
,
There
ness.
police
United
action
States
I
who
am
received
no
caused
I
mind
effect
stock
and
am
be
in
line
with
dent's
budgetary
beginning of this
not
cause
civilian
a
disruption
of
the
Federal
al¬
bullish
timism
the
letting current
get out
seeds
of
of
hand
real
ness
the
ginning of
is their
raise
intention,
interest
we
and
in
this
the
last
has, in
since
Sep¬
opinion, been
my
barometer
for
the
to
of
the
confi¬
real
have
boy
future
backed
getting
of
America
prosperity. They
up their judgment
I
remember
into
as
a
few
investing in
securities representing ownership
in American businesses
Board and of the Federal Govern¬
and opinions with hard earned net
ing
ment should be one of stimulation
industry
so
continue to
can
goods
required by
tion.
we
the
and
services
dynamic popula¬
our
.
The .1952
..
report of the Presi¬
Materials Policy Commis¬
dent's
sion
stated
that
their
projections
doubling of the
showed by 1975 a
nation's total goods
(what
the
and
services
economists
call
as
their
up
market
last
has
cate
to
been
and
year
American
ting
line
with
economic
our
growth
by that time to only
million
rather
than
lion
that
also
anticipates
the
work
and
appears
the
so
205
193
mil¬
realistic.
It
shortening of
by about l/7th
a
an
week
average increase in pro¬
ductivity of only 2.5% per year.
1975 is only 20 years away. Obvi¬
ously so scaring a
goal as
a
doubled gross national product by
1975 will demand
in
creases
words,
the
over
there' will
mendous
tremendous
production.
be
In
next
20
in¬
other
years
continuous,
a
pressure
tre¬
business to
on
produce ^nore and
Few in¬
more.
dustries-or-businesses
can
sive
Stock
credit.
and
bond
-
is¬
investment
partnerships,
bank Moans,
accounts receivable
financing, consumer instalment fi¬
nancing, and other kinds of fi¬
nancing are all forms of credit
sues,;
withput which our business and
would
commerce
meet
the
be
unable
to
cation
of
a
growing
in
I
influence
stocks.
are
the
on
Stocks
competing
business
general
believe
market
are
for
direct
a
for
commodity
a
spendable
dollars
against
automobiles, homes, re¬
frigerators,
mink
coats,
roller
skates,
and
living
a
I
room.
chair
new
have
for
been
Favorable
Business
whether, in the light of
my
optim¬
like
they did in 1954.
To such
questions I have replied that stock
market prices may go up like the
level
at
which
a
pole vaulter
clears
the
bar—the
higher they
difficult it is for them
go
the
more
to
go
higher.
The favorable climate for busi¬
ness
emanating from Washington
has
made
it
possible
for
com¬
panies with keen and alert man¬
agement
go
to the public for
equity money and to insurance
banks
for
long
companies
and
term loans,
and with funds so ob¬
tained these comnanies have been
able to grow and
and produce
do big business
the commodities and
products that are giving you your
jobs and your homes with com¬
to
istic
market prices will continue to
in 1955 and somewhere along
up
the line will reach
on
go
a
level
where,
times earnings basis, a yield
a
basis, and
value
a
net worth to market
basis,
they will have the
appeal, but no greater ap¬
peal, in competing for consumers'
same
move
into
a
not
is
long term
reap
of
go
down
and
our
the
pocket will
prices
the
of
things those dollars will buy will
up
in terms of dollars, and
go
securities
will
the
other
one
reason
go
up
along with
commodities.
that
only within the laM
months have stocks
ed in their
chasing
truly reflect¬
prices the reduced
power
ing out of the
12
pur¬
of the dollar aris¬
war
and the depart¬
the
"Chronicle"
Feb. 24
this column called attention to the
go
do
think
not
Cer¬
along with those who
automobiles
the
production
will
continue
of
its
at
present
clip. I do not see a de¬
pression, however, engendered by
a
cut-back later this year.
I do
not look for any action to
drop
the
corporate
rather
I
tax
look
rate
for
to
action
47%-
to
con¬
tinue the rate at its present level
of 52%.
The action of Congress
last week in following the Presi¬
dent's
recommendations
on
the
reciprocal trade bill should stim¬
ulate
freer
a
tween
this
flow
of
country
be¬
foreign
goods
and
of
complicated "Statement of Policy"
issued by the Securities and Ex¬
change
Jan.
Commission
31,
amended
as
literature
that
can
Mutual
Funds.
be
In
not to write
that column,
I
letters
any
believing that
bureaucratic
would
spe¬
in¬
was
interpretation
*
be
based
generalized
.very
upon
"Statement
a
of
Policy."
Mr.
Ferd
Nauheim
Security
monthly
material
Sales,"
kit
Woodward
"Modern
well
known
of
advertising and
helps for use in distributing
sales
Mutual
Funds
that
is. available
through Kalb, Voorhis & Co., 25
Broad Street,
New York 4, N. Y.,
wrote
following after this
the
me
column
appeared:
Government
figures
from
coming to
that
heretofore
sources
have been wholly reliable indicate
for
in
1954
retail
business,
1955
the
will
top
automobile
hardware
stores,
clothing stores, general merchan¬
dise
furniture
stores,
stores.
and
Indications
appli¬
that
are
makes
'Statement
of
Policy'
the task of writing a
than
it
is."
He
states
that
he
writes many letters
promoting mu¬
tual funds
every
month in the
and
year
NASD
before
to
over
then
files
them
they
all
with
turned
are
dealers and salesmen.
gives
the housing boom of 1953 and 1954
will carry over into 1955 with all
his
that
manufacturers
stain
ment
of
implies
for
and equipment
well
as
the
as
following
simple
view, will enable him to ab¬
violating the "State¬
Policy." Such as—
"Tell
building materials,
road, schools and public utilities.
the
Our economic system
has been
"This is
truth.
letter, not
a
brochure,
a
therefore confine yourself to mak¬
ing
Policy,
ort
geared up to a very high rate'of
■inherent in Mutual Funds, and not
production. Like the pole vaulter
go into great elaboration.
—the higher the record of past
"Avoid
any suggestions
about
achievement the harder it is to
excell:
Nevertheless,
is
ours
country built by ingenious,
tive
and
men
know
the
frustrations
who did not
women
stories
of
of
older
defeat
use
them'
The spirit of America has been
forward
drive
to
attainable—the
toward
the
un¬
remote
more
the
goal the harder the drive and the
application
to
problem.
longer
Management
no
planning for this year
is
today are planning five and 10
ahead.
They must, to be
years
able to continue to lead
of progress.
stripe
that
look for
the
Planners of this
have
I
more
the par¬
visited
with
1953's and 1954's in
ahead. Minor setbacks
there will be, it is sure, but the
frontier of America is no longer
outlined by the national borders,
it is not • outlined by rivers and
mountains—it is limited only by
the imagination and ingenuity of
collectively the best brains the
years
has
ever
time in
to
11
an
assembled at
seen
one
and. proud
olace. I
live
year
happy
country
am
in a
old
son
can
of the things that were new
and wonderous to
hood
being
as
fashioned
me
in my child¬
from
days."
I
"those
have
old
confi¬
dence that when he reaches
hood,
atomic
drugs,
jet
energy,
man¬
the wonder
propulsion
electronic miracles that
ing to
"Do
our
and
are
the
com¬
attention afresh every
will
be
"old
fashioned"
and
relegated to the past by
the accomplishments
that will be
speak
of
"Try to sell
er's
an
appointment and
shares.
willingness
or
basis
OK
can
planning
in
Far
as
on
medium
a
the
good
to
a
that
It Goes
Mr.
foregoing
see
of my
can
secure
by
inquiries
from
other
anH
answer
concerning
mail
securities
rather
junctions
the
not so com¬
nw
are
pletely benumbing.
What
.
than
,Wh?.rein the difficulties
ro
we need in this business
re-
ck t0 my Mr. NauP°int and
with
HL!
'
likewise
1
I
agree
yo" write about
particukfr
particular
f
no
fund; if you try to sell
appointment instead of a fund-
an
and
if
make
you
a
few
points-
mutna/f® 5eneral do not
advantagesinto
of
mutual funds and
go
great
elaboration,
you
don't have
Pol7cv"y ThT-"16 "Statement of
1S exactly what I
intended t
thhfLi COnv-ey my the waders
t0 article
column
of
of
this
in
on
said" "Mv°?efteb' 2r4' 1955> when
will be wriItenttasrUo°wS:nOW °n
I
Dear Mr. Investor:
Enclosed
or
find
prospectus
literature
and
pertaining
to
Mutual Fund. T
7
with
0tdesadiscuss
fP
with you at your
convenience.
McDonnell Co, Affiliate
a
obtains
Of J. H.
Drang & Co.
TORONTO,
Canada
J.
—
h.
WestS Sp k' 40 Adelaide Street*
Stork**e™bers of the leading
Stock.Exchange and other Toronto
thataRlaiV ™^anges'
ih f
that
announce
F" McConnell has been
?/r generaI &
Partnership
McConnell
Company
Nau¬
points.
SELL
MU¬
SHARES BY MAIL
naming
firm
territory that I receive
fh,?TtlSlng' and this is Ibusiness
tnat I
when
anrt
and
specific
1S n°W 3n affiliate of tbeir
firm
to
answers
elected
lb Ackerman has been
director and
a
Secretary
and' Howard'
fund
he suggests. Almost
every week
as
my
,
thousands ,of
that it does
try and
TUAL FUND
without
as
along with
go
on
However, I don't
any
(possibly
T
a* c°uld do the same
nwL ,Cani rJUn -mydistant parts*
legS off fo1-,
wing up leads
to
tends to reduce the risk of invest¬
I
men
country
she
ing."
heim
foun?
know ,there are hundreds of
investment
in
this
yonri
good
har¬
her objectives
or
financial
put
ability
suitable fund to
a
monize with his
and
and
prospect how he
find
sensible
I could write sales letters
any mutual fund in the
Stress the writ¬
show the
may
th*
specific
a
fund.
Limited'
our
1
^c^°nne^ & Company
f
»
<0. Whillans Treas-
.
•
*
*
»
^
advertising from all.over the state
and
in
various
parts of the
coun¬
try.
reasons
Joins Paine, Webber "
-
These people want facts and
our
whv
think
we.
(■Special to The Financial Chronicle)
they
should buy a certain fund. A good,
DETROIT, Mich. — Hobart A.
Gurney is- now affiliated with
Paine, Webber, Jackson & Curtis.
commonplaces
Penobscot
bov of that
We
have
ments of
behind
turn
«
us.
our
to
day.;
an
11
year
old
/
Building.
,
A
most
of
large and
the
a
small waf
Johnson McKendrick Adds
We have been able to
skills
and
brains
to
lieve wholeheartedly tonight — I
confidence in American in¬
have
genuity, productive skill and the
basic system of free enterprise. I
on
especial to The Financial Chronicle)
the
sion and for generation of power.
As I said last year—and still be¬
still bullish
f
adjust¬
problems of improving the stand¬
ards of living of mankind. Atomic
energy is being used for propul¬
am
day will be
not
not fund
The real leaders in Ameri¬
alone.
ca
the
intense
more
the
future results.
and
generations
knowing them did not
their guide in life.
or
as
a
crea¬
as
.try that would sell by mail, and
by also using a telephone follow-
few points about advantages
a
other
.Without the ambiguity and the
doubletalk of the "Statement of
He
rules for the letter writer that, in
of
producers
any
situation! ^ ** 'S
from
and distributors of house furnish¬
the
with
non-
violating letter sound far tough¬
er
basis
sales solicitation by the use
as
ftriktion fTdt°T\n0t greater
relations.
"The
you
"State-
uiftil Mhis
But
£an. be placed on a com-
petitive
C., who
for
a
*™s
far
appointmentJ
violate any
Policy."
in
Nauheim,
the
of
thir-u?
Dissents
Bldg., Washington 5, D.
writes
lells to
an
have
per¬
what I intended to convey) might
leave the writer at the
mercy of
which
if you want to write
rnent
statements pertaining to
funds (at least that
a
♦
don t
taining
to
the
sale
of
mutual
funds, except a brief message an¬
nouncing that literature prepared
by the Funds was enclosed. I gave
cific
the Picture- abetter
I agree
thf
that
used
expressed the opinion that it was
advisable for-dealers and sales¬
is the only
SSSf- Pfl is ' where this
Statement of Policy" knocks
you
offering of
now
in connection with the
men
hardhitting sales letter
1955, pertaining to sales
dividual
Perhaps
for the 40% rise in the
Dow-Jones averages over the last
12 months may be traced to the
fact
main¬
a
universal.
course
tainly I
w^ere
in
an
The feeling of optimism I share
with my many business associates
talk
carry
in
bility in international affairs.
period of inflation the value of the
we
sophis¬
tenance of good profits and sta¬
world
we
By JOHN DUTTON
In
my reasons for
one
If
a
The market appraisal of.the next
dollars
that is held out by the
things to which I have al¬
the
made
are
six months at least is for
ade
that, with the optim¬
outlook for business, stock
remain
capital
gains.
To take such long term
profits the buyer must hold the
security for six months or more.
*
I believe
The
confi¬
will
by
investor
effort
asked
istic forecasts in 1955, I think that
market prices will go
up
time
any
spread
business
Purchases
year.
dollar
Climate
wide
a
that
ticated
the
stock
at
good for the next 6 months to
bet¬
come.
ready alluded.
Present
of
dence
more
is
group
services
my
than
ability of the market to absorb
offerings and bid up shares
now outstanding is to me an indi¬
ings
are
Securities Salesman's Corner
com¬
new
other
demands
economy.
The
indi¬
productivity and
increased earnings in the years to
grow to
this expanded size without exten¬
the
over
greater
on
Changes
in
there
business
conditions
be
rising
optimists than pessimists, and that
by far the largest segment of the
the
to
That the stock
More
since I entered this business.
ance
forecasts
half would
a
that
me
back¬
are
optimistic
after taxes money.
product.) Fantastic
this sounds, this increase is said
gross national
seeking
are
expansion
for
shut up."
or
The people who are
in
the purpose of raising money
for
those
up
all
produce
panies
for
figures
agreed that the monetary
policy, of the
Federal
Reserve
to
from where I view it.
sales
—
standard
My own business of underwrit¬
ing securities issues for businesses
during 1955 looks awfully good
me
"O.K., put
gold
*
inevitable response was
a
months
just enough to make
their policy felt but not enough to
jolt the economy.
Certainly we
are
1933.
that
arguments
the
from
ure
usually would end up by someone
saying "I'll bet you," to which the
make
little;, of
the
of
The rise in prices
with their cash.
told, to
are
rates
They have done
good.
was
point
the be¬
money scarcer.
market
dicies
speculative boom, it
a
business
result
a
have, through savings and careful
handling, acquired
capital,
are
apparently convinced that the in-
If
years.
see
sub¬
was
future
has enough credit to
keep on
at
a
sensible
rate
they
not
dence with which people view the
of America.
People who
sow
Fed¬
expanding
through 1955 and future
did
of
era
was
stock
good
a
Reserve, through its mone¬
tary policy, plans to see that busi¬
from their studies
beginning
author
present
of stocks
eral'
ness
to
rise
market had gone up because busi¬
op¬
and
inflation.
you.
tember, 1952, rather than that the
Reserve
upon
to
references
prices and the
their
prosperity
that Federal Reserve Board activ¬
ities currently are based
of not
that
the
that
Board, Mr. Martin, has indicated
policy
The
had
I
stantially and solidly built. In one
question the inference was made
economy.
lude, and which I consider of vital
importance, is the monetary pol¬
icy of our government. The Chair¬
man
as
think American business
the
The other factor to which I
own
them
outlined
picion
will
in
which
my
of the Fall of 1953. Taken together
the nine questions created a sus¬
the
at
and
year
I
basic concepts
own
market
in
in these prices since the
Presi¬
message
future.
Congress
review
questionnaire
activity
the
of
to
me
my
have
spending habits of this nation
will
the
questionnaire not long
of the investigating
a
committees
involving
industrial
of
ago from one
basing my
own
projections upon this belief,
that the national
budget and its
upon
people, however,
are
fearful
are
an
on
during 1955.
further believe, and
in
optimistic in terms of future busi¬
.assumption that there will be
the
business
America I just cannot help but be
In my own propections,
basing my own activities
war. nor
for
is
measure.
.
contemplate the favor¬
climate
adequately
cannot
we
expanding
through
the orthodox means of public fi¬
nancing and private borrowing.
their productive facilities
that this
say
con¬
tinue to raise funds for
be-
aggression
I, therefore,
in
nation
will
businesses to be able to
run
a
likewise, and
our
war
acts
that
;one
if
into
pected for 1955 and I expect well
Pres¬
taken
the State De¬
done
that
plunged
has
war,
partment has
forts you enjoy. A continued fav¬
orable outlook for business is ex¬
wis¬
our
wise.
were
Eisenhower
stand
in
that they have
war
the outlook for
MINNEAPOLIS, Minn.—Everett
E.
Sanford has become connected
with
Inc.,
Johnson-McKendrick
I
Joins
' 1
Peltason, Tenenbaum
(Special to The Financial Chronicle)
ST.
stein
LOUIS, Mo.—Jay A. Edelis
now
industry and business generally in
this
great, bountifully endowed
tason,
God-fearing country of
Building.
ours.
Co.
Syndicate Building.
connected' with
Tenenbaum
Co.,
Pel¬
Landretb
46
The Commercial and Financial Chronicle
(1174)
.
.
Thursday, March 10, 1954
.
V
Continued
from
whether in
21
page
is
be
short;
for
does
it
Employment
Unemployment
this
In
long
take
job.
not
worker to find
a
a
past
year,
reports
weeks
reached a peak
of one million in the spring. This
figure has been declining since
then, and the year ended with a
total of 700,000 long-term unem¬
or
more)
ployed—about one-third less than
at the 1954 peak.
The
shown
are
general developments
same
by data from the De¬
partment of Labor's Bureau of
Employment Security which indi¬
cates a decline during the latter
of the
part
in
year
of
duration
receiving
compensation.
persons
There is
the average
joblessness
among
unemployment
-
x
aspect of un¬
one more
which should be
In a gross figure
of, say, 2.8 million unemployed,
there are many different kinds
employment
J earefully noted.
of workers.
At
one
extreme there
are
heads of families in the prime
of
life,
serious
most
other .extreme,
employed
person
who
worker
than
their families,
as
for the Nation's economy.
as
the
At
for
consequences
and
themselves
well
workers
the
experienced
unemployment' has
whose
the
un¬
be
may
works
never
into
moved
the Census
that the number
of
persons
experiencing
longduration unemployment (15
Bureau
a
more
and who volun¬
the labor market
part-time
350,000
category,
this
in
unemployment
that
working
in
some
accession
been
In
men
age groups
and with varying at¬
tachments
to
Some
the
people
summer
the
labor
force.
work only during
months, others over
the period of Christmas
trade.
Thus, of the 2.8 million unem¬
ployed in December 1954, as many
as
1a/4 million, or 40%, had be¬
unemployed only since No¬
vember,
These people—two out
come
of every
in
five unemployed persons
had been seeking
December
jobs for
over,
one
—
month
or
less. More¬
not all of these short-term
the' unemployed.
drops.
Due
tcr
More
realistic
depreciation
poli¬
cies and the removal of the Ex¬
Profits
be
cess
We
need
a
more
(In millions)
February
3.8
cases
increased.
confidence
3.4
amazing
3.3
In recent years scientific research
July
who
workers
portant factors
2.8'
outside the
;
been
series
a
technological
2.8
has
September
2.7
of
October
2.5
or
November
2.8
have not been covered under the
December
2.8
their
system.
^
matter
No
benefit
^
what
the
is
a
level
of
matter of serious con¬
that
being lost and morale
cern.
It is among this group
skills
are
is
cast of
troduced it only to
emphasize the
application of the atom to
ful
the level of unemployment.
Thus, in
summary,
the recovery
promises
purposes
For
the
whom
by
unemployment
serious
consequences,
The
extent
the
of
of the absorption
additional
CHART IV
upon
recovery
and
peace¬
even
of the potential
workers
will
depend
number of factors which
a
year
or
more
a
other members of this panel will
UNEMPLOYMENT AS A PERCENT
analyze.
OF THE LABOR FORCE
time
factors have
been at work which have reduced
the supply of stocks available for
sale.
The
which
investor optimism
increased the demand
for
stocks has caused many pres¬
ent owners to continue to hold
14
Y£ARS
ANNUAL AVERAGE
Yoor
Porcont
1941
9.9
12
present
shares.
Many of
these investors are encouraged in
H. V, Flett Joins
this
A. G. Becker & Co.
by the knowledge
that, if they sell at a profit, they
must
pay
a
capital gains tax
which
York
that the
Midwest
and
1946
5.5
changes,
1952
2.7
cent
19 53
2.5
with
1954
5.0
Stock
Ex¬
3.4
1949
10
decision
CHICAGO, 111.—A. G. Becker
& Co. Incorporated, 120 South La
Salle Street, members of the New
announces
Flett
has
them
will be
and
that H. Vin¬
become
as
a
associated
Vice-President,
located
in the
Chicago office. Mr. Flett,
of
Nova
in
years
Scotia,
the
was
firm's
a
native
for
many
investment
depart¬
will
capital
reduce the amount
they
have
reinvestment.
available
We
are
of
for
convinced
capital gains tax, which
must be paid only if the shareowner
decides
as
artificial
an
to
sell,
has acted
restraint
on
the
business judgment may in¬
to him that he should sell
other
however, the
pect of paying the capital
reinvestment
suade him from
Another
the tax
the
often
dis¬
unfortunate
it
has
result
of
diminished
supply of funds available for
and untried
new
which
of
will
acting.
that
is
pros¬
gains
reducing his capital
thus
tax and
enterprises, most
in
small
are
size.
For
traditionally risk capital has been
supplied from the profits of past
the
of
the
capital
harmful
gains
tax
and
effect
on
our
our
econ-r
the Exchange has proposed
Congress the following recom¬
mendations:
The capital
forcing prices higher. And
the higher prices get the more
solidly frozen these holdings be¬
gains late of
tax should be cut in half.
Such
cut would do much to restore
bility to capital and at the
time
should
actually
a
mo¬
same
increase
by encouraging
appreciated securities:
revenues
sales of
holding period for
detennining whether the sale of
capital asset should be taxed at
a
the capital gain
lar
income
duced
late or at regu*
rates
six
from
should
three
to
be
re¬
months.
The present
artificial
holding period is an
restraint, the principal
effect
which
is
Here
also
of
inaction.
to
encourage
Federal
could be increased
enues
by
rev¬
per¬
mitting investors greater freedom
in their
investment
Third:
Losses
transactions
offset
to
extent
of
decisions.
from
should
be
capital
permitted
ordinary income to the
$5,000 instead of the
present $1,000.
ular importance
This is of partic¬
to the small in¬
vestor who
the
usually does not have
opportunity
to
match
the
loss
on
profit
ital
another.
with
and
a
More than 80%
people who report net
losses
of those
have
transaction
one
on
of the
than
more
cap¬
78%
who report capital gains
incomes
of
under
$10,000
a
year.
alternative
An
supply of stock available for sale
—thus
ment of Sun Life Assurance Com¬
have
investments;
for
of
owner
which
transfer his funds into
and
same
has
their
PERCENT
dicate
Second: The
past
same
simply
Good
Federal
more
continuing series of developments,
on all
fronts—political, economic,
international and technological—
have in my opinion had a cumu¬
lative effect on investor confi¬
At the
tact
The
stock
in value can, avoid
keep his capital in¬
by refusing to sell.
and
tax
Firsit:
prolonged of this autumn and winter has
unemployment
and
destitution. reversed the downtrend in em¬
Apart from all other community ployment and there has been con¬
dence and have steadily increased
or government programs designed
siderable improvement in the la¬
the demand for stocks.
to create jobs, there ought to be bor
market.
There
remain, of
special effort made* to meet the course, areas and industries in
Supply Factors
needs of these particular individ¬ which unemployment is serious.
being destroyed
the
after
dramatic developments.
marked effects of seasonal factors
on
miracle
one
of
shares
appreciated
to
television,
plastics and other synthetics, com¬
puting machines, medicine,. jet
aircraft, automation.
And now
of course, is not a fore¬
unemployment. I have in¬
This,
.
be, this last
unemployment may
group
rights
produced
self-imposed.
100
omy
another—in electronics,
un¬
is
securities markets
advances.
August
are
employment
the transfer of
has increased in
on
But, unlike other taxes, it
value.
of
im¬
most
affecting investor
has
tax
a
property which
Because
May
the
of
one
fect,
v
capital gains tax is, in ef¬
successful ventures.
3.5
Perhaps
The
own.
3.1
June
of
and
some
April
those
characteristics
the
on
our
of
March
time, and particularly
at any one
exceeded
chip" stocks where the volume of
transactions, as measured by .their
turnover ratio, has been steadily
reduced as the price of the stock
have
Tax
London, Amsterdam, Paris
Germany — rises that in
such
S£L£CT£0
distressingly clear in many "blue
3.5
has
million
how¬
factors,
almost certain
is
been made
come.
lieve, materially increased the de¬
mand for stocks since September
1953. Money and credit have been
readily available in the economy.
January
the
l1/*
seasonal
to
there
ever,
unemployment is develop¬
ing, in what locations and from
what industries, on the composi¬
tion of the
unemployment load
for
the
factory
employ¬
steady although it usu¬
This pattern has
portant factors which have, I be¬
where
uals
Of
hours of
lengthened.
information from time to time on
unemployed had lost jobs during
month.
The
securities markets
hausted
are
Reflects Investor Confidence
given en¬
sharp increase in unemploy¬
couragement to business.
There
ment during the winter months.
has been a growing confidence in
a
large group of persons moved The
heaviest
unemployment of
the future growth and prosperity
out of the unemployed cate¬ the
year usually occurs in Janu¬
of our country, and this public
gory.
In fact, the number leav¬ ary
and
February.
Thereafter
confidence has been firmly back¬
ing unemployment (1% million) the spring revival in agriculture,
ed by our business leaders in their
was as large as the number mov¬
construction and other industries
announced plans to expand and
ing
into
unemployment
status normally produces jobs
which modernize their facilities.
(114 million). Of those who left again reduce unemployment. As
These events on the national
the
ranks
of
the
unemployed, we have already indicated, the
scene have
been accompanied by
some 800,000 found jobs and about
year 1954 ended with a total of the
cessation of hostilities in Ko¬
500,000 withdrew from the labor 2.8 million unemployed. Starting
rea and Indo-China and a steadily
force.
with that figure, for December,
improving economic outlook for
Despite these figures I have here is what the unemployment
Western Europe.
given, we know much too little picture would look like during
The fact that the countries of
about the unemployed—their in¬
1955
if
seasonal
changes were Western Europe continued their
dustrial attachment, their previ¬ the
only factors operating during economic
recovery in the face of
ous service
in the labor market, the year.
our own downturn was an
import¬
their age,
sex
and other char¬
ant factor in bolstering investor
acteristics.
The
Department of Volume of Unemployment; in,. 1955 confidence
everywhere. As shown
If Seasonal Influences Were
Labor is now planning to expand
in Chart II, this renewed invest¬
The Only Factors Operating
its program of current statistical
or
confidence
was
reflected
in
During the Year
reports and analytical'studies of
rises in the
During the very same time (be¬
tween November and December)
tween
Ranged in be¬
and women of all
been
December,
ally
or
job the previous month.
from time to time.
leaves
Present Level of Stock Piices
Layoff rates have
declining.
compensation
sys¬
tem, either because they have ex¬
tarily
have
work in factories have
ment held
7
page
show
rates
dicated earlier.
had
from
farm
Statistics
Labor
rising in recent months, as I in¬
keeping house, going to school or
other activity outside of the
labor force.
The remainder had
been
of
from
the
The turnover data from the
Bureau
Continued
immediate future
the
concerned,
ing.
some
nonfarm
good times or in bad.
as
outlook, apart
from seasonal factors, is improv¬
Recent Changes in
And
far
So
the effect of the
securities
the
on
method
to
ease
capital gains tax
markets
would
be to allow the investor the same
CHART I
recently has been
Manager of the investment de¬
partment of Investors Diversified
pany and more
Services of
TREND
STOCK
OF
YEARLY
PRICES
AVERAGE
Minneapolis.
INDEX
Slayton Co. Adds
(Special to The Financial Chronicle)
Slayton
&
Company,
STANDARD I POORS COMPOSITE 480 COMMON STOCKS
IN 5-1939
*
UNADJUSTED
150
With Merrill Lynch Co.
,
(Special to The-Financial Chronicle)
CHARLOTTE, N. C.—Basil M.
mm Buret o< pmtmut or lam*
<MUW or LUO* rrATKTCS
James
•OVRCt:
Mitt or CtMUO
away
Sackett,
McKenna
March 3.
&
partner
Co.,
•«*,
/
"""""
ADJUSTED F 3R
y
^
CONSTANT DOL
50
*1
Ray P. Sackett
turfrjtt.mfr
.
100
Watkins, Jr. is with Merrill Lynch,
Pierce, Fenner & Beane, Addison
Building.
P.
100
200
Inov^
408 Olive Street.
Ray
•
-
ST. LOUIS, Mo.—Cletus L. Cun¬
ningham has become
affiliated
with
1926-1954
250
~r ¥
q
in
CfeASED ON G.N.P.
1
1
1
1
Ik PLICIT
...
1930
passed
1
PRICE DEFLATOR
1
1
1—1
1935
(|935H939«I00)
1
1
1
1—
•
1
>
1940
<
-1
.
•
1
1
•
1950
1945
J
LJ_I—1
1955
1—
/
—
—_
\
tatbSMMiiran
K« «QW.
_ TtOCK UOMCQ
Volume 181
Number 5410... The Commercial and Financial Chronicle
(1175)
freedom
he
from
-exchanges
tax
liability when
security invest¬
one
ment for another
as
a
person now
has in selling his home and
buy¬
ing another. An individual has
real
no
entire
gain when
proceeds
house
one
he
from
and
takes
the
the
sale
them in
puts
of
an¬
other.
if
sell
you
worth of smck in
one
$1,000
company in
order to buy $1,000 worth of stock
in another
company, you have no
real gain since
you are still keep¬
ing your money completely in¬
vested in the productive facilities
of American
enterprise.
To
permit
tax
be
or
swaps — with
nominal one—would
a
holdings
which
vestors
market
shown
are
by
the
capital
gains
Another
duced
Stock
during
factor
the
which
supply of
has
stock
able has been the limited
of new stock
being
re¬
avail¬
amount
issued.
by
the
since
1950.
In fact, in
every
since the close of World War
II,
American
been
corporations
creating $3 in
have
debt for
new
$1 of new stock financing
(See Chart III). One of the major
every
for
reasons
outside
this
limited
use
of
equity financing has been
taxation of dividends.
If
double
a
corporation creates debt, the in¬
terest it must
pay is tax deduct¬
ible.
To
dollar
the
pay
bondholder
be
can
of the
in
pressed
four
In
profits
interest
bonds, are not allowed as a
corporate tax deduction.
on
That
in
Congress allowed the
figuring
was
right
modest
merely
dividend
his
tax
bill.
step in the
further
relief
a
direction;
should be considered. A substan¬
tial reduction in double taxation
of
dividends
whether the tax
—
credit
is
given to the stockholder
the corporation—would
or
reduce
the
disparity between the cost of
debt financing and stock financ¬
ing,
thereby encouraging more
stock
new
issues.
Such
added
an
most
are
are
three
two
the
in
the
of
these
our
tions
volume
of
stock
as
great;
is
%;
ratio—is
member
the
re¬
the
and
The
now
1/6 as large;
borrowings are
are
is
the
price inflation
would
terms
of
In
ing
substantial
de¬
have
we
by itself
by
fact
the
that
the
shares
of
many
companies
have been selling at prices—often
below
book
value
which
the
—
management
in
regards
terms
1929
This
by
of
relation to
since
50%
stock
dollars,
index
is
as
for
done
in
'Secondly, and of even
importance, is the fact that
—unlike
groceries,
commodities
do
-more
stocks
underlying
values.
additional
I
ership of
a
clothing
not
or
shares
at
pre¬
the
mentioned
new
two
ago,
an
company
as
an
oak
In
acorn.
value
are
is
or
most
more
different
terms
earning
—
20
of
the
less
1954
there
were
shares
listed
Exchange compared with
than ^a
1929
of
billion
the
billion
transactions
hundred
in
volume
one
—
million
1929...
of
measures
short,
made
to
billion,
shares
one
the
share
than
more
At
the
in
once
rate
1954
of
all
during the
of
573
—
take
million
than
more
over
the
reported
the equiv-
shares
listed.
the
be
seen
when
dollar
against
virtually
the
different
were
in 1929—or
Whether the
from
more
of
stock
of
Market
The
1929
Exchange's
Transaction
volume
decisions
vestors
investor
in
but
and
that
15,
1954,
showed
for
Dec.
an
in
the
and
mar-
watch
for
excesses
indicate
would
unsound
conditions in the sale of securities
either in our own market or elsewhere. While the Exchange has
no contr°l over prices or the volume of transactions, its Governors and offlcers recognize that
execesses in any direction will
hurt
Exchange far
any other, institution,
more
than
desirable, there is no indication that a generally unwhole-
was
condition
some
market.
our
market
has
orderly
an
the
of
amount
The
Striking
credit
amount
of
by member
or
of
listed
stock
been
prevailed in
believe that the
functioning
and
manner
that
in
the
Pu^^c s appraisal of present busioess conditions and prospects
fo|
future.
xiie
Exchange
and
the
National
Economy
rru„
u*
u
f
t
u
u
J} }, a a
°P?
J
to d ^uss*s *he relatlonship
between *he Exchange and the
natl<?nal economy; Wlth Particular
emphasis
on
the
contribution
i
the future
nf
nnr
j
Kl1
can
make to
growth and prosperity
rnnntrv
t
'
■
in-
world
eouallv
borrowed
with
has
We
economists
^ I
economists,
oiarl G^ment
given increasing at.
issues.
This
borrowings
com-
oihcmls have
tention to the concePt °* continu'"S economic growth. A national
been^ublicl^dwlLed^v
I;/l i
~
^J'senh >wer and former
b°th ° .wbc™
mdlcated §oals of at Ieast $500
Continued,
$1.9
of
Presh
11„
t,
on
page
48
CHART 1H
DEBT
IN
VS. EQUITY
NEW
by
comprised our
of volume
Transactions by the pub¬
—
does
of
1929 reached $8.5 billion
close to 10% of the total value
8
source
lic— individuals
it
as
CAPITAL
SECURITIES
FLOTATIONS
1919-1954
public individuals
single
it
upon
millions
market.
cash
investment
1954
however, mean
Exchange has not kept
the
which
and
not,
which the Exchange
volume
■firms in
Public
on
transactions
of
is
the
detailed
a
made
reflecting
throughout
contrast
the
over
course,
1954
vs.
latest
Study,
control
transactions
money
everything
Activity:
Exchange, of
the
been
1929
careful
a
basic differences
many
the
does
Exchange last,
„
Stock
no
pares
100
institutions
bulk of
the
on
Exchange, or
Institutions and longinvestment by individuals
term
from
share
all
divi¬
for
nearly
volume.
outside
of
New
over
25%
of
from
today
half
of
all
69%
Almost
of
public transactions originated
New
York
what
and
1946.
people
price of the stock
Public
even
has
of¬
himself.
kets
realizes
volume
the
on
even
one
—
The
There
have
are
present market level reflects the
ac-
represented a figure equal
but
8%
of
national income
to
pro¬
and
1954, it is the differences which
significant.
The
fact
that
—
whereas in 1929 the
pace of trading was the equivalent of 142%
of the
national income of that
serv¬
apsome
ex-Despite
evidence
that
some
ceeded
the
number
of
shares members of ,the public have, in
listed. In other words it amounted certain
instances, paid more atto the equivalent of
selling every tention to tips and rumors than
the
firms,
endeavors
protect
accounted
years
of stock
companies
In
reported
it
are
1929
between
about 76%.
corporate
and
power
totally
they
end
three
transactions
decades.
in
now
member
our
business
company today may be as
different from
a
share
of
that
dends—the real
such
last
—accounted for the great
own*
a
cir¬
In
represents
company, and a share
assets,
vailing prices.
Earlier
stock
and
unwilling to dilute the equity of
their existing stockholders by is¬
suing
—
same
same
the
valutV
are
that
amount of credit in the
market.
At
similarities
year
is
securities
analysis of the market
low
cumstances management has been
the
essential
of
In
con¬
Chart I.
of
other
any
property.
tivity can
graphically
the public with a tremen¬
dous flow of accurate information.
or
graphi¬
Standard and
adjusting
480
by
be shown
can
The sharp contrast
between the
markets of 1929 and 1954 is
shown
also by a comparison of the
volume
of market
activity and thb
that
vides
that—
.
power
earning
the
are
fices
dollars—they
levels
can
too
as
in
of
credit
as
purchase
The comparative amount of
responsi¬
security analyst, whose
Common
restricted
the
ices
The
seen
mean
in
stock.
been
with
The
of
until—in
the
form
to
total
that, .while there
between
used
of
therefore
summary
pears
there
be
(See Chart IV.)
with
Board
specula-
In
purchase stocks just
alent
obtainable fact bearing
value of a security—has
(22%).
also
Reserve
as
1.1%
or
Close to 40%
of
margin transactions are made for
long-term
investment
purposes,
Investors utilize margin credit to
shares—it would
listed
billion,
47
at the end of 1954.
transactions
considered
five years to turn
a new
professionexploring and assess¬
to
largest
has
securities
be
as
$25,000.
activity.
year.
Ex¬
registration
all
credit
the
on
represent
financing
Securities
margin
volume
every
things in terms of prop¬
erty from one year to the next.
stock
1933
con¬
all
market
over
addition
supply of stock would help to ab¬
sorb the increasing
demand for
New
and
of
Federal
devoted
purchasing power—
prices will not reach 1929 levels
stant
The
charged
use
frequently
century.
Poor's
of
market.
cline in the value of the dollar in
the
past quarter
cally
Commis¬
Act
disclosure
full
bility of preventing the excessive
only
which
exceed
revised
the
year
first
more.
Exchange
Securities
for
SEC
arisen
1929
been
of
national
The
overlooked.
in
well
a
rules
exchanges; it bans all
manipulative operations.
comparing
1954 and
1929
prices there are at least two
The
is
The
public; ' The
formation,
only 1/5.
In
market
market.
mails.
on
tive
over
change Act of 1934 makes man¬
datory adequate disclosure of in¬
ratio of volume to the number of
shares listed—the so-called turn¬
over
which
to
incomes
should
imbedded
are
the
the
transac¬
only
in
contexts
con¬
social
cerning new issues of securities
publicly offered in interstate and
foreign commerce, and through
the
daily
average
volume
now—the
markets
curities
only 1/5 as large as in
1929; stock transactions as a cercentage of national income are
1/18
prices
difficult,
to make valid
elaborated foi* the protection
the
sion.
is
ported
stock
self-policing
Exchange itself goes* far
beyond the regulation of the Se¬
increases
economy
£fnd
present
of
today
following measures of stock mar¬
ket activity then and now: the
dollar
1954
vs.
very
Exchange have
and
assets corpora¬
than twice as well
with
size
com¬
volume
with
Not
on
of
off.
Compare
only
the
completely different.
so
The
to
were
then
provides
in
of
1954
impossible,
regulated
ex¬
total
more
and
economic
the
are
physical vol¬
is gen¬
big. In terms of
as
not
economic
they
economy
and
even
difficulty en¬
attempting to com¬
in
1929
and
1954
some
were
what
erally twice
or
determined
evaluation
ditions
terms, of
the
factors
issue stock, it finds that
it must earn more than
$2 to pay
the new shareowner
$1, since div¬
idends on stock, unlike
credit
and
which
dollars
times
tions
1929
by comparing
1954
be
can
1946
comparisons between market
basic statistics for the two
In
1929,
personally find it
if
bopm-and-bust
between
seen
in
It
an
pare
I
The tremendous changes in our
cides
a
the
and
to
for
countered
the
cycle of 1929-1932.
stock
Last year
in
those
In addition to the
as to whether
possibility "Of a
a
of
recurrence
a
the
stockholder
doubts
much
Market Conditions—1929
topped
This fact quite
many
now
cases
the
prospects.
has
averages,.
comparing
pany's present position and future
general
as measured
some
1929.
raises
of
is
the
prices,
popular
minds
there
corporation must earn
only one dollar. But if, instead of
creating debt, the corporation de¬
,
period
the level of
naturally
the fact that
New
stock flotations
by domestic cor¬
porations last year were the low¬
est
the
level of stock
ume
Issues
sold
by
1929.
New
stock
1953..
measurements
kept from
in
rise
by
price with what the stock
current
been
been accentuated by
years.
now
determined
,
has
prices since September, 1953, has
long-term
in¬
1954
vs.
which
the
over
unfreezing the
of
tax.
year
Level—1929
concern
economy
such
solution to
one
large
the
The
reached and in
Similarly,
no
Market
York
nonmember
City
and
remainder
the
was
City institutions
brokers
throughout
individuals
is too high or too low cannot be
under
$10,000
serving
the
country.
with
incomes
contributed
as
stock
financing of General Motors.
In
my
opinion the rise in the
market price of General Motors'
stock
that
this
A
played
an
tracted
to
SELECTED
issue
of
been
has
COUNTRIES
1948-1954
'00EX
AND
(billions]
growing
stock
KWW*5T0aC®W«l
ANNUAL AVERAGE SHARES LISTED
SHARES
600
securities
the
corporate
con¬
woifs, coutacw. •r»w<cw. cwwocfc
PRICES
AVG
which
supply
has
of
sources: sOnomo t
STOCK
CHART IV
INDEX
factor
the
available
amount
decision
stock.
third
INDUSTRIAL
important part in
company's
new
CHART II
TURNOVER
T"*1™*
RATIO
1910-1954
5
held
by institutional investors and the
increasing importance of longterm stock investment
individual
of
and
more
the part
on
shareowners.
shares
More
are
being with¬
from the market, locked
up
in safe-deposit boxes where
neither
prospective buyers—nor
drawn
the
capital
self,
It
an
the
on
gains
reach them.
can
sity
collector—
not, in it¬
unwelcome development
American
financial
underlines
merely
new
tax
This is
the
scene.
neces¬
for stimulating the issue of
equity
eliminating
securities
and
the "locking
for
in" ef¬
1948 1949 1950
1951
y0K A*t rtte
fect of the
capital gains tax.
1952
1953
J
F
M
A
M
'rJ
19^4
a
s
o
n
o
j
r
1955
m
1910
I9IS
1920
I92S
1930
I93S
1940
I94S
|9S0
W*
I9S0
t£i
S30CR CXCNAMC
48
The Commercial and Financial Chronicle.
(1176)
,
that industry
Say
47-
Continued from page
..
Thursday, March 10,T95i*
is thoroughly quired to provide mere-and-better-the securities industry can gncolir- ..
tools for more and better paid, age;stock investment;
a -spqh&v
'employees.
'
v* basis. Through government;pokey
alert to the importance of. broader
share-OWnership.r
Tn
Prices
Present Levels Siock
addition
,
.
,
this educational
to
that tlie governmentaclimate favorable for equity jn-
•' We believe
vestment can befostered/ Together
the securities industry an<f gpv*provide more efficient and cOnr power to improve the climate for ernment can ; counsel,' encourage *
venient service for the investing new stock'financing and ;Tor in- and gdide the pi^lie toward sound •
public.: Out of these efforts has; vestment in the years ahead. This common stock' investment,;^ Putin the form of savings account come the Monthly Investment Plan wouldinclude early' revision, of. even together they, lack the wis£>fflion of Gross National Product
ori Government
bonds, and pro- which permits the investor to pur- the capital'gains tax,-and eventual: dom. to tell the publicVwhat it
by 1965.
•'
; ; 1 * ' :
;
buy and" what price, it
The » Exchange; throughout >'its vided against catastrophe by chase for cash small amounts of feliinination of double taxation of should
means
of life insurance, should stock by regular payments out of dividends as soon as revenue corr- should pay.
''V"
* r**'"
162 years serving the nation, hasone consider the purchase of com¬
income.
siderations permit. :
1 •
J" ,* It is true that some of our citialways been in the forefront of
mon, stocks.
v '
i
those who recognized that} more
j.This pay-as-you-go method of " But the main reliance for the zens may act unwisely and suffer,
Our member firms who deal dir purchase does not involve the use success of this program must rest, loss.
Put most will'act; intelli-'*
jobs, 'j better pay, and improved
rectly •; with; the
public, believe of arvv credit whatsoever,/and, by* not On the securities industry nor gently ' and prospef. i'Wd cannot
livfrig standards could come only
that
first-time' investors should permitting the purchaser to invest the government, but on the Amer- hope to:'protectreach Tmprudeht/i
through economic growth—which,
buy conservative shares, .as in-- a fixed number of dollars each ican public which, through the investor against' himself.-* But,
in turn, is dependent on capital
deed
the
Monthly
Investment month or each quarter over a pd- exereise of good - eomman sense through the medium of eOpnomie^
investment.* *
' •> •
r
•
r;
Plan purchasers are doing.
Our riod 6f. years, gives the investor and an intelligent appraisal of the education, we can and.must teach ;
It will take'more than declafafirms believe, that, if an investor' the opportunity of dollar cost av-; risks
and rewards of common all out people of the opportunity
tions of national policy, however,
the Exchange,community; can also contribute to this essenimproving its facilities tiai program of doing all within its
program
is at work
to
,
.
-
.
of more than
National Prod¬
uct in the next decade.
If this
is to be' done with a: relatively
achieve
to
looking ahead,, there are con¬
which offer him
is
rise
a
.
,
..
etagirig.; We have
partiei^-stock-Ownership;'-must determirte which is/theirs to" own their
been
share
servative stocks
*
larly gratified by the high'.qualityf for' itself the role it will- play in of American buriness; .This * is'a f
opportunity * to share in, the of the stocks which are proving supplying the equity capital our v challengewhich should enlist 'thegrowth of our country.*-The Ex-, most popular with MlP-purchas- country must have in the years cooperation
of "everyone*-who. ,
/ ; ? .'-wishes to see America and Ameristable level and in a peaceful change and its community em¬ ers. In its first year of operation, which lie ahead..?
world
situation, it will require phasize that people should inves¬ MIP has established itself as an * Through its educational program cans prosper-in the years ahqad^ '
tigate before they invest; that important' part of the Exchange - •'»'
-1
-«-■
unprecedented vision and hard
they should
consult a reliable community's service to investors
l.
to
/'""
work; it will take business and
broker and
get the facts about
The member firms of the Ex- Continued jrompage 12
;/
labor leaders with, courage and
a
company before they purchase
change are fully aware of the re¬
determination, more and better
its shares; and that they should
sponsibilities of undertaking
a
factories and tools, and unprece¬
not act on tips or rumors.
*
program to encourage new invest¬
dented private capital investment.
.Market research indicates that ment in common stock. They are
The success of a vast program
there are up to 20 million Ameri¬
not trying to sell stock indiscrimi¬
of .capital investment and expan¬
ing to the'dictates of their own the Communist world might* becans who are probably in a finan¬
6
nately to all comers. Rather the consciences. ;
sion
is
essential to the future
- •
;
aired provided that there was ascial position to consider the pur¬
Exchange community is trying to
economic weilbeing of our coun¬
chase of common stocks.
These ' broaden tne base of cornorate < They /had
broaden
the
base
a common surance
the
of
Droaden
ot
corporate
corporate,
try.- During the next ten years
^
against the mightiest em^ eral
Assembly or the Security
the Exchange and its community
ownership among millions of fi- ;»auie .against uie mignuesi em
it is estimated that more than U
n
rpppivinr ac widewish to encourage. But we defi¬ nanriallv ahlp Ampriran families■, Pire of that time. They had caf-*-council were receiving, as wiaemillion persons will join the ci¬
S? i u
American iamilies.>
from the old country spread coverage behind the Iron
nitely discourage those who can¬
The Exchange believes that the f/60 °ver rrom me oiq country
®
,
vilian labor force.
Our country's
not afford the risk of purchasing
program of broadening the base
the background of the . Magna
future will require that jobs be
common
stock.
As we promote of
corporate ownership is'of vital Carta and of representative gov.
' • ; ' \
v ?
created
for these
new workers
our slogan
"Own Your Share of importance, not only because of ernment. They had had..expertand those new jobs will require
a
American Business,"
it is clear the
new factories and tools. For every
great need for the equity cap- ence, as • ?" independent nation,
that we mean
owning common ital which it will
provide, but ^
unsatisfactory under mumsts
view
job that must be created an aver¬
stocks only on a sound basis and also because such a
program, suethe Articles of Confederation. - of the West does not
■
age of $13,700 will probably have
in accordance with one's capacity
to be invested.
Add to this in¬
cessfully executed, will redound
With that background, under equal
to bear the risk.
to the ultimate benefit of all—the what I believe was divine inspira- people in the Soviet Union and
vestment needed for full employ¬
The program of the Stock Ex¬
investors themselves/American
ment
the
billions necessary to
tion, drafted the greatest docusatellites because of the strict
change is1 to tell the American business, and our entire country, ment produced by the mind and censorship those
create the new products and serv¬
expublic what common stock is and
The
investors themselves will hand of man for his self-govern- erase.
' :
^
1;.
ices
devised
by
industrial re¬
what
the' Exchange
does.
The benefit because stock investment ment and protection of his natural
»LVen in regard to'its position ofj
search and to keep modern our
challenging
opportunity
which in a well-managed company pro- rights: *
; '
.'
;
moral leadership the United Naexisting plant and equipment, and
this presents is measured by the
the magnitude of the task ahead
vides *. the one
medium through
a little more
realistic under- tions has allowed itself to become
results of a public survey com¬
becomes clear.
> *
■
which most American families can standing of the history of the na- seriously compromised. /
! : )
pleted for the Exchange last Fall. own their share of American busi- tions
gathered in San Francisco ,
Following the intervention of
By 1965, according to a recent
At present only 24% of the adult
staff report of the Joint Commit¬
ness
and participate in
the dy- should have made it clear that Communist China into the Korean
tee on the Economic Report, the population is able to describe the namic growth
which lies ahead such an organization could not be War the United Nations, after
functions of the Exchange rea¬
level of business expenditures on
for this country. The high intrinsic
and should not be considered a great hesitation, declared Commusonably well. Only 23% of the merit of common stock as a
long- basis for world government.
plant and equipment is projected
*
nist China the aggressor.
Tliere
adult population can define com¬
to approximate $60 billion annu¬
term" investment medium has been
There is no common language or had been no such hesitation when
in bur GrosS;
40%
an
.
,
Failure of the United Nations
fought:
the debates in the Gen-
Curtein as they do in the free
""taons.
Otherwise it becomes
vast,
propaganda forum for the Comwherein the point of
have the
opportunity to get to th^
governments
increase of almost 60%
ally—an
1954.
over
To
soundly finance this
growth
industry will have to
seek out every possible source of
new
funds.
The Exchange esti¬
mates that new common stock fi¬
Through
corporate
nancing will have to be increased
three or four fold to a rate of
$5
Such
*•
the flow
in
increase
an
into common stock
investment would far outstrip the
cf
new money
America's
of
ability
in¬
upper
in¬
stitutions to provide equity capi¬
tal. If we are to obtain the capi¬
tal needed to insure our future
growth
look
sound basis we must
on a
savings
the
to
financial
and
families
come
are
as
our
the
public
trying to tell as many people
possible the story of investing
and the rale of the
appear
papers with
million people.
three
and
distributed
chures.
the
700,000
the
our
gallery
has
just
Exchange works.
this
undertook
everywhere. Corporate ownership
must
be
broadened
to
include
to
who are quali¬
fied financially to be shareowners.
lative
two
the
To
miracles
of
mass
which have done so much for our
country, we must add a third —
mass
investment.
In the years
ahead
we
must rely on the mass
publication
90,000.
over
last
fall
we
hard-hitting campaign
a
the public of the dangers
warn
inherent
in
the
unbridled
specu¬
than
more
both American and Canadian. This
any
was
widely
the press of both
technicolor
Our
acclaimed
system, The per-
prising business
who owns
son
has
ness
interest
share
a
and
direct
a
the
in
success
estimated
have
and
supply a substantial portion of
cur
equity capital needed.
"What
movie
10
seen
million
two
by
people,
we
movies
in
displays
firms
campaign
to
broaden
shareownership under the theme country
"Own
Share
Your
of
American
Business" the Exchange
mg
to
on
tell
an
the
is
educational
public
carry-
program
what
the Ex¬
and what common
stock is. We point out that there
is
a
risk in
the ownership of
■common stock and that only those
change
wfm
are
the risk
We
new
Educational window
for the offices of our
member
its
En
does
are
eventual
throughout
the
and
continuing
is
a
simple
which guarantees his
ership.
To
right to ownis a source of
it
me
continuing pride that any man or
woman
United
the
in
States
has
riSj^ toone ofone share or a
buy our great cor-
hundred
in
porations, to raise a voice in the
management; ot, tne
business,
to
accept the risks and earn the rethat
wards
This
go
right
part
ownership.
with
priceless
of our
£^ex^eVirnce with rep^en^tiye constitutional govern-
change hope to play
in
ship
in
tending
of
million.
50
formation
Program
communities
with
across
speakers
who
In¬
will
provide
the
country
can
tell
story of the Exchange and
stock investment to
an
the
com¬
ever-
widening audience.
an
important
shareowner-
broadening
the
experience,
long
that
than
jess
0j
jvjatK>nS
bave
those
of
one
million
with
representation
equal
300
over
The
million.
basis
sound
public
°U
resoonsibilities;
To
maintain
highest
and financial
n
level
respon-
sibi lty among its members,
To
ull disclosure of the
insure
corporate affairs of its listed companies,
To
and
orderly
and
market in
continuous
its listed
a
in acting against
"This seemed
bandonment of principle
for expediency,
long-
orcier, and
of
sits
as
constitutions
established
a
of
law,
respect of the rights
man
Now, there are those who urge
the admission of Communist China
wbicb was the aggressor in
Korean War.
a
large
aggressor.
to be an
the evidence was
Later, when
conclusive that
the Soviet Union
not only giving moral support to Communist aggression in
was
Korea
but
was '
supplying MIG
ammuni-
planes, tanks, artillery,
the tion, and other weapons in clear
This, together with
the other Communist states,
would
violation
of
the
United Nations
resolution and the charter of the
organization, no steps were takento expel the Soviet Union from
the United Nations.
» ,"'*
me
as ]ong as j have a
Later on, the official represena
v0^e jn the Senate of tative of the Soviet Union; badly
give that system of tyranny Over
million people that they claim
to speak
far
As
0r
for.
and boldly admitted the fact that
guar- such support had been given and
never
antjes 0{ freedom under our Con-
stitution
being
directly
diluted
or
modi-
or
organization having in powpolicy
positions
nations
which have
nQ
appreciation of
0r
respect for free institutions.
such
a
we
be
gradually edged into
world state before we learn
been
candiput»lic office—executive,
iegjsiative or judicial—should be
asked to give a forthright .view
t0Q
jate
wherein
we
have
taken, I believe that every
for
later
this great oubUc issue.
think.
United Nations, if it
than you
The
in effect defied the United Nations
to do anything about it.
.They did
by nothing and by inaction under-
indirectly
erfui
Up0n
securities.
there would be
resolution and
that
pass
act against a small aggressor *
but there would be. procrastinato
nations with
era,
partner with
fair,
a
indicate
to
alacrity
equal
modern
auction
provide and maintain
to
an
the
Lest
the
To close observers this seemed
tion and delay
any
to acquire shares on a
the
Exchange will
portunity
{y >
1950.-.r;:^.:
in June of
Union, which is perhaps
tbe most tyrannical government
sjnce western civilization entered
sovjet
yea^s ahead. an op- jje(j
In exAmericans
all
to
the small aggressor Communist,
Korea, crossed the 38th parallel
ment sit on equal terms with those
jstmly themxracle °f America, the united States, I shall
5 *nem°6r nrrns or tne iL,x- consent to permitting the
expected to reach an
audience
Our newly organized Investors
mon
busi-
a
to work toward preserving
strengthening the system
step
production.
...
in
of that busi-
From that base it
ness.
part
countries.
Makes Us Tick" has been
sravings of millions of Americans
to
single factor
u
campaign
an
.
rein-
which
Nations
heritace
common
activity occurring in many hentage of equality and freedom
unlisted uranium and oil stocks—
in
Other
any
.
I can thmk Of, our tree and enter-
the
The "Exchange" magazine has a
In
production and mass consumption
and ' bro¬
Americans
employment of the
millions of pepole
million
period
the productive
Americans
force,
past
have
we
10
same
reception
shown
how
than
pamphlets
In
public
years
more
educational
the
During
half
a
,
of
person
shareownership will
Exchange. The
national circulation of
of
in«V
Wide
in 542 daily news¬
a
circulation of 44
Our answer lies in
funds
as well to the
moderate incotee as to
applies
we
&nd
time and again
demonstrated
advertising and all
with
of Americans.
fnvestable
Among
Exchange's educational advertise-,
millions
of
accurately.
relations
our
ments
$6 billion a year.
or
stock
mon
non-shareowning households only
19% know what common stock is.
tbAir futility w^en dealing
with Soviet charter violationsEvery member of the5" United
Nations knows that the terms of
the Korean armistice have been
violated on numerous occasions.
The neutral nations commission is
not allowed to function in Communist North Korea as it was in¬
tended though they have complete
freedom in the area of the free
It is Republic of Korea. In violation of
the terms of the armistice, the
do^s
Communists
have
brought
in
position by equipment and built military airin a position to assume
In many phases of this educa¬ through
the continuation
actions which I shall, mention, fields.
No effective steps have
should purchase shares. tional work we have enjoyed the present
services,
the
Exchange does have a function it could per- been taken to require respect for
suggest
fcas set aside
that
an
only
after
emergency
one
fund
effective support
listed
companies.
Through
of
I
assist
this
and
of its
program
American
many
of our
will
need
hardly
raise the huge sums of
business
capital
to
re-
not destroy its moral
form.
It could be a forum
in the views of the free
where-
world and
the terms of the armistice,
The most flagrant violation has
Volume 181
been
the
Number 5410...The Commercial and Financial Chronicle
admitted
members
throughout
holding of 15
the
American
sen¬
tenced
of
to
.
prison
of
terms
will
in
all
of
to
be returned
to
do
order
to
world
who
us,
the price of
pay
another Geneva
or
buy
pite from the
who wanted
war
free
again
never
another Yalta
from
years. Under the terms of
the armistice it was required that
Jl to 10
prisoners of
the
understand the dangers facing
Air
Force, 11 of whom have been
temporary
a
insatiable
international
res¬
appetite
Communists
to
If
are
we
as
free
a
show the same
mon
people will
courage and
that motivated
sense
Constitution
Cashier
has
problems
we
Anglo's
for¬
no
there
at
are
least
hundred
additional
tions and
United
of
several
United
Na¬
The
,
United
in
this
Nations
passed
expressing its
matter.
The
special
concern
$600,000.
and
without
known
re¬
the
upon
which
ture.
It is apparent
might be ex¬
pected to be returned in the fu¬
that they are
the purposes of
and
paralyzed,
at
the
the
and
Chairman
effective
of
steps to enforce
airmen
our
with
terms
I
>
the
matter
of
the
of
^
China
is
a
He
New
Communists
York
fire.'
to
to
discuss
*
■"
"
■
•
.
of
the father
was
Jr.,
Martin
Reserve
the Washington
Law School, in 1900.
of
associated with the Missis¬
was
sippi Valley Trust Company from
1900 to 1914, rising to Vice-Presi¬
come
cease¬
a
has
and
Transamerica
arid
of
Corporation, holder
1
*
Merger
*
*
' '
•
The "First
of
-
V
National
Bank
of/Pomona,^ Cal. and the
California
Trust
Company into,
California
Calif,
Bank, of Los
Angeles,
banks
holders of the two
Feb.
on
28, to become effective at the close
of business March. 4. The merger;
Mr.. Martin
became
Board will
provide California Bank with
Chairman and Agent when the
three branch offices strategically
Federal Reserve system was in¬
located to serve the rapidly ex¬
augurated here in 1914. In 1936
panding
Pomona
Valley
area
he became President, retiring in
bringing its total number of of¬
1941.
A
testimonial
dinner
at¬
fices to 48, Fr^nk L. King, Presi¬
tended by 200 civic and business
dent
of
California
Bank, said.
leaders was held for him by the
Resources of California Bank will
local
chapter of the American be increased
approximately $32,Institute of Banking.
7
000,000 to a record amount of
But a short while later he an¬
;
victor
down
down
would
be
the
to
terms
that
expected
to
a
lay
vanquished—namely
that the Republic of China should
be
removed
from
the
Security
.
Council and that the Soviet Union
resolution
-States
condemning the United
should be
.iof business
Zealand
*
made the
rather than the New
resolution
cease-fire.
order
relative
to
nounced he
When this message was received
Martin, Peper & Martin. A mem¬
the
neutralist
Soviet Union
and
Red
trying, < through
to
provide
are
of
'
key
and Matsu and
United
This,
another
be
free world
bank's
from
of
defeat
Baton
admission
the
to
Communist
of
part of
as
The effective date of the enlarged
China
capital
Jan. 18.
was
the
force
appeasers
of
to' taking
life
my
the
:
These
not pleasant facts, and
are
of
of
Commerce
capital from $7,000,$8,000,000 as a result of the
of $1,000,000 of new stock.
sale
#
there
are
of
amount
view
United
publicity
have
propaganda,
torted
the
in this country
who, because of the
*
and
gotten a dis¬
capabilities of
of the
Nations
Organization.
.
First
The
Denver, Colo,
this day and
Certainly in
-
the
of
airplane
and
nation
weapon, a
the
can no more re¬
turn to isolationism than
can
return
to
age
atomic
adult
an
*
is
important that
we have a
collective se¬
curity and to demonstrate to the
It
of effective
communist
be
no
world
that
there
will
donment of free
people into Com¬
of
a
while
nation
will
live
up
to all
of its treaty obligations, and we
have the right to expect that our
allies will do likewise.
I
the
have
a
deep
American
conviction
people
and
that
those
Bank
of
the
stock
the
increase
dividend
sale
of
resulted
of
$50,000
stock
new
also
added
$50,000
to
the
capital,
which, as enlarged because effec¬
tive
Feb.
First
of the Elm Street Office iu
ager
Pomona, and G. W. Carter, As¬
sistant Vice-President and Man¬
The
capacities.
proposed
merger
referred tn in these columns
was
Feb.
California National Bank
Calif., acquired
San Francisco,
the
of
Oaks, together with its
Carmichael, both lo¬
at
branch
cated
business
of
Hoover,
has
Bank,
offices
as
28.
tablished
of
in
1945
the
of
Bank
Bank
state
a
will
Bank
have
*
soon
ing
Bank
assets
All
$4,000,000.
former
become
Suburban
officers
of
staff
Calif, has set March 28
as
the
ex¬
piration date of warrants to sub¬
Anglo's
and
other
exception
of
.
mailed
to
Feb,
28,
record
now
will
Anglo
staff
participate in
hospitalization insurance and
warrants
being
and
pension plan, group life
scribe to 300,000 additional shares
of the bank's capital stock.
The
are
are
and
members
personnel benefits, with the
of
T.
completed,
Chairman
board of
Deb.;
the
Calif.,
George
O.
Kellam,
President of the former Suburban
ceived
.
'directors, announced on
23.
This
-
marks
-
first
the
from
plans
nities.
was
of
in .1912
organized
one
it is
and
headed
by women. Since 1926, the Indian
Valley Bank of Greenville has
been managed by Mrs. Cecilia M.
managements
Chamberlain.
late
C.
H.
are
of the founders of the
sets
the
said
tinue
$2,000,000.
exceed
now
Coats
be
to
As¬
bank.
con¬
know
Indian
the
at
Valley office of the First Western.
to
National
Fresno
R i
24
Feb.
v e r
d
a
1
e,
ject to the approval of the First
National's shareholders, a meet¬
called to
ing of which has been
the
control
If
offer.
of
office
of First Western, Mr. Coats said.
All personnel now employed
would
as
an
and
retained
be
open
.
E.
L.
First
The
Western.
instiution has assets ol
Riverdale
total
and
$2,121,000
deposits
of
$1,925,600.
"
*
*
*
with
San
in the
in
the
as
office
near
in
9.
The
land
tion.
cover
bank
additional
will
and archi¬
nearing comple¬
proposed building will
plans
an
be
a
announced on
has just com¬
purchase
of
for the project
The
on
permanent home of
that city,
Paul E.
pleted
tect's
are
by
100 feet,
reinformed
concrete
area
of
said
were
will
be .the
>
revealed
that
permission
in
to
Bakersfield,
applications
field
of
the
office lias
now
on
authorities.
Bakers-
new
not been
selected
yet.
The
will
at
Chico
new
be
located
321-325
office
initially
in leased
quarters
Main
Street.
Reinhardt of Chico will
J.
W.
head
the
First Western office.
Bernard M.
Muhraney
Doyle, O'Connor
With
(Special to The Financial Chronicle)
APPLETON, Wis.—Bernard M.
Mulvaney has become associated
with
Doyle, O'Connor & Co.,
South
Mr.^
Salle
La
Street,
Mulvaney-for
conducted
business
his-
.
many years
own
New
has
investment
in Appleton.
Brokers
The
135
Chicago.
if
Square Club
Monthly Meeting
Brokers
will
York
Square
hold
monthly meeting on
its
Club of
regular
Friday eve¬
ning, March 18, 1955, in Room 710,
Masonic Temple Building, 71 West,
New York City. An
and entertaining pro¬
Street,
interesting
gram
has been prepared. Masons
good standing are welcome.
in
on
Hoover, President,
Feb.
future
East
Weber
Stockton,
Calif.,
to
building
Avenue
its
will start con¬
Francisco,
struction
new
Su-,
He
office
regulatory
Location
23rd
Anglo California National Bank
of
f
today made formal
for
office
new
file
Vice-President and Man¬
the
also
office
an
_
as
of
ager
•
which brings to 10 the number of
Julien, President of the First Na¬
tional since 1926, has agreed to
serve
Coats
application
Chairman
by
Coats, of First Western's board of
directors. The transaction is sub¬
consider
State
28.
new
office
First Western
County, Calif., it was an¬
nounced
*
has
of
Bank
the
Feb;
the
Chico
Mr.
new
also offered
acquire the assets of The First
Company
rv'
7
advanced, and the opening
take place early in March.
The
and
Bank
Western
First
The
Trust
:
First Western's 55th.
Mr.
would
bank
both
on
for
well
the
husband,
Her
Chamberlain, was one
7
would
Bank
California
in
banks
two
whose
Valley
Indian
The
»
of banks and the '
Deposit Insurance Corporation, T. P. Coats* Chairman ct
the Bank's board of directors, an¬
nounced
has 54 offices in 39 commu¬
♦
Federal
when it absorbed 23
banks, although since then it has
applied for permission to open
nine additional offices. The bank
now
appointed Manager
was
perintendent
acquisition by First Western since
November,
E.
Company, San Fran¬
Calif., has now been re¬
cisco,
Western's
First
of
/E,
Trust
and
as
Coats
P.
•
Elected
were
Permission to open an office in
Chico by the First Western Bank
arrangements now pend¬
as
are
;F.
Wilshire-Detroit Office.
♦
Green¬
Bank
County,
Cashiers
and
of
assets
of
the
ville,-• • Plumas
es¬
*
Western
of the
of San Francisco,
Valley
Office;
B.
Manager,
'
Rank
Western
acquire
Indian
Holtby, manager rf
Hollywood
Schafer, Assistant Cashier cf
C. W. Dearborn, H. E.
Lord, Arthur L. Reisch, and L. A.
Soper, all of the Head Office.; IL
A.; Skankey., formerly Assistant
member.
.:
First
The
Ho
Out-of-Town
Bon terns,
Re¬
Federal
.7 *
Trust Company
V.
Assistant
''
Feb.
was
had
and
the
Paul
of Anglo
The two
Suburban
approximately
officers
25,
Anglo offices on
Suburban
The
Feb.
President
announced.
the
of
opened
at
Sacramento,
near
close
Suburban Bank
of the
assets
Fair
is
in
from
Francisco.
the
Assistant Vice-Presidents.
by the Board
the
it would be operated
*
*
* -
bank
as¬
Office; and LeighTuck, Assistant Secretary
of the Head Office, were elected
7*
Union
Calif.,
the Riverdale bank is transferred,
10, page 729.
•
-
respective
their
in
Office
Avenue
Holt
the
of
remain
Anglo Bank and all members of
Company of San Francisco,
shareholders
an
Gorrell,
P.
Assistant Vice-President and Man¬
the
The
as
of
14,
an¬
Bank
coming
San
to
North
W.
System, of which the latter
serve
14.
❖
Trust
This
National
Helena
further retreats or the aban¬
munist hands.
♦
Mont., has increased its
capital from $100,000 to $200,000.
from
system
©f
capital of
serve
E.
board.
advisory
First
The
of
will
Bank
Governors
Vice-
become
directors
present
E.
The
will
Bank,
National
of
Bank
a
Helena,
Part
childhood.
has
$3,000,000, increased effective Dec.
6, from $2,500,000 as a result of
the sale of $500,000 of new stock.
*
his
with
and
Anglo
National
now
California
of
present staff
will
continue
in
charge of the
three Pomona offices. George G.
Stone
and
Kenneth S. Graham,
Vice Presidents of The First Na¬
*
many
and elsewhere
vast
Houston, Texas,
increased its
000 to
United States out.
Vice-President
ager
*
As of Feb. 4 the National Bank
Red
China,in I shall devote the bal¬
ance
.
the
Raymond E.
will
*
Far Eastern Mu¬
a
'
nich,
capital
the
La.,
Rouge,
*
If,
has
$500,000
thereby having become $1,000,000.
1he
Nations.
United
of
addition
capital of $500,000 of the City National Bank of
million
opposed
strongly
am
into
15
bank.
Presidents of California Bank. The
*
been made to the
human beings.
more
I
and
*
*
An
tomers at all branch offices of
tional
of $100,000.
Conference, wherein the
gained control of
Vietnam
of
tal, effective Jan. 17 from $400,000
to $500,000, by a stock dividend
throughout all of
upon as another vic¬
Communists
Northern
National Bank
Anniston
California
Bank
Anniston, Ala., increased its capi¬
the
wholly-owned affiliate of
Bank,
will be more
conveniently
available
to
cus¬
pany,
and
*
*
services of California Trust Com¬
Smith, Presi¬
dent, of The First National Bank
11, of Pomona, will become a director
effective Feb.
capital,
The
course,
for
tory for the Communists, com¬
parable to that growing out of the
Geneva
$100,000
of
$400,000 to $500,000.
$
and
Asia looked
new
membership in the
Nations.
would
of
the Fourth National Bank of
Columbus, Ga., has increased the
Quemoy
of
amount
the
v
by
whereby the Chi¬
islands
coastal
of
•
sale
and
issuance
stock
Communists will be given the
nese
f
♦
*
*
.
The
China
diplomatic
for a Far
channels,
Eastern Munich
friends
another son,
was
Malcolm W. Martin.
_
the
firm
the
of
ber
poning the whole situation, while
of
coming out of re¬
head
a
law
firm,
was
to
tirement
*
the United Nations again demon¬
strated its ineffectiveness by post¬
some
than $715,000,000 with de¬
posits
increasing
approximately
$30,00,0000. As a result of the
merger
it
is
stated
the
trust
more
a
•
announcement
share-'
by
approved
was
Division.
changed its title as of Dec. 20 to
Bank, according
serve
California
of
assigned
the
the Wells Fargo
of
meet¬
.
1953,
Company
is
*
Trust Co. of San Francisco,
an
with
December,
ton
to
King,
a
Feb.
on
the Bellflower.
"
The Wells Fargo Bank &
»
••
L.
Calif., at
board
Wells Fargo Bank & Union Trust
cisco Bay area. *
the
sociated
Central Valley and the
*
elected
was
President,
nounced. Mr. McElney became
concentrated in the
San Fran¬
chiefly
of
Frank
Redding in the north to Taft
Bakersfield in the south, and
are
majority of the bank's stock,
a
has offered to purchase for invest¬
ment
all
unsubscribed
stock
at
Vice-President,
ing
Eureka
from
located
are
■
*
Vice-President of California Bank
of Los Angeles,
offices
receive, will raise the bank's total
capital and surplus to $57,000,000.
-
laid
ant
Man¬
Assistant
named
been
*
J. L. McElney, formerly Assist¬
_
clerk,
chief
j
Street.
*
ager.
held.
dent and General Counsel.
Arrogantly, the Chinese Com¬
j
munists
California
on
was
.
University
to
The
years.
of the Federal
predecessor
organization \invited
Chinese
now located in
spacious but
temporary quarters at 230 North
new
shares
each* six
for
one
and
dent
Stilwell, -previously
$40
937.
tions,
the
80
28,
St.
Washington and formerly
charter member of the United Na¬
that
of
ratio
the
for
stock
stated
market, value
graduated from Washing¬
ton and Lee University in
1895
and the old St. Louis Law School,-
Chinese
which
in
Martin
Communist aggression against the
Republic
share
a
share
Bank.
additional
the subscription price of $40 a
share. Reference to the proposed
From
the
"Globe
increase in the bank's capital, was
we also quote:
7
made in our issue of Feb. 24, page
A native of Lexington, Ky., Mr.
.
r
the
the
to
of
fice is
Assistant Vice-Presi¬
Manager, and Richard
President of the New York Stock
accord¬
steps, if any, does the
United Nations intend to take?"
In
the
Currently, it
McChesney
Board in
effective
,
of
*
the Korean Exchange.
ask:
"What Democrat";
of
Again
armistice.-
in
of
age
William
ance
♦
noted that he
2
Security Council
General Assembly have taken
release
Office
Louis "Globe Democrat" of March
United'Nations
no
be
St. Louis, died on Feb.
held for
international blackmail on the part
of the Chinese Communists.
Impotent
National
to
give
access
Start
area.
The building will ba
approximately a year
Anglo Bank's Stockton of¬
later.
According to its latest pub¬
March.
lished statement of condition, the
the
of First
William McChesney Martin Sr. 4,
stock
is about $52 a Anglo Bank has assets of more
former President and Chairman of Western's
than $934,000,000 and
capital
The
$12,000,000 of addi¬
the Board of the Federal Reserve share.
Its
tional capital First Western will funds exceeding $62,000,000.
Bank of
they
being
Simmons
is
Sherrill
the
as
Bank,
$
date
any
profits of not less than
main office of the
The
Sherrill
former
warrants
with
rear
completed
office, John
connected
of Anglo
Bank in San Francisco, has been
shareholders
right to subscribe, pro rata,
The
the
parking
Hoover said.
Managers.
Carmichael
appointed
undivided
Secretary-
trip to Peking." He
prisoners
Assistant
in
the
construction is tentatively sched¬
uled for this coming spring, Mr.
Landry, previously
wfth the head office
a
without the release of the
turned
the
At
News About Banks and Bankets
General, Mr. Hammarskjold, made
a
torists
from
Cyril
office.
Oaks
E.
the terms of the armistice.
resolution
14
page
States prisoners
being held in violation of
war
from
Fair
named
been
Continued,
drive-in
teller facilities,
and " a
special walk-in entrance for [-mo¬
Bank,
Diffen, previously
Assistant
Cashier, and Richard
J. Fase,
previously a loan officer, have
There is strong reason to believe
•
that
Suburban
the
G.
need fear.
we
of
been
appointed Assistant
Vice-President and
Manager of
of
none
and there is
solve
eign foe
are
domestic
great
our
there
43
Bank, who retired upon the com¬ construction and will have two
and a basement.
On the
pletion of the transaction. ■:
/ stories
John
W.
P u g h,
previously parking-area side there will be
com¬
Wash¬
ington and the others who under
divine
inspiration gave us our
cannot
destroy human freedom.
should be allowed
so.
(1177)
of
70
With Robinson
Humphrey
(Special to The Financial Chronicle)
ATLANTA,. Ga.
—
Richard
R.
Felker has become associated with
the
Robinson
-
Humphrey
Com¬
inc., Rhodes-Haverty Build¬
ing. Mr. Felker was formerly sales
pany
representative for the local office
Equitable Securities Corpora¬
of
tion.
^
50
(1173)
The Commercial and Financial Chronicle
riods that growth in equity is really realized, dividend
growth is
attained and market valuation built up.
An examination of the
fundamental factors of any of the industry's "blue
Bank and Insurance Stocks
erating
cnips" brings
^
This Week
Insurance Stocks
—
Continued
from first
| SECOND OF TWO ARTICLES]
It is the general custom for both fire and casualty insurance
companies to confine dividend payments to the stockholders to
income from investments, retaining any underwriting
page
;
This
Advantages of Treasury's
Long-Term Bond Sales
profits for
periods of great expansion, such
experienced since the end of ihe war, it becomes
essential for the insurance industry to husband income in order
to have available funds to
support the increased volume of writ¬
ings.
Otherwise there must be resort to issues of new capital.
the growth
»
as
of the
business.
In
have
we
It is a time-tested principle of
public finance that all short-term
Therefore, at such times, the pay-out ratio, that is, the ratio of
dividend
to
short-term market is the quickest
comparison
of volume of premium writings of the stock and mutual
companies
for two periods, the 14 years 1932
through 1945 (about the end
of the war); and the seven
years,
1946 through 1952.
In the
earlier and longer span volume increased 75%. In the later and
shorter period the increase was 167%. A representative
company
"in
1939
disbursed
dividends
in
a*
of its investment
86%
income
and most
calculated
the
as
kept free
of
sum
fire
any'Voluntary unallocated
in
the
just
unearned
it is
as
this
reserve
in
at
the
the
case
that
reserve
of
chosen
the
is assigned
calculation
for
date
in
casualty unit, unless the variable based
is selected.
% -' "
on
and
In
'.
earnings
the
trend
to
year
price, particularly
period; the underwriting
least
several
ratio; the
mium
years
to
"tion
or
and downs of the general
,
here is
real test of managerial
a
ability
as
is feasible, for
it relates to investment
as
10
of
this
period)
to
is
company
earned
that
it
is
habitually
a
method
of
building
up
equity
over-reserves.
wnen
tne
,
give insurance
1954.
It therefore requires the
company results
eight
longer period to
good perspective.
Indeed, there is little point in using
extended
a
flagration
one
any period except
in which to carry an investment in
insurance
single
of
very
several
years
ago,
or
as
the General Motors
the
market
one
any
able
an
stocks,
costly fire, such
hurricanes,
or
a
con¬
stock
tumble, could very well affect the
holding adversely in
year's time, while, as already pointed
out, by holding over
such time
10
as
developments
years,
are
both the favorable and the unfavor¬
smoothed
out.
And it is in the
longer
why
not,
it
of
short-term
end
the
debt
As
a
sistent
reliance
nancing
short-term
tions.
..
As
United
ag-
iiy
converted
greater
»the
the
general
words
States
for^the
$44
of
in
of
course
time, fur¬
visits
ahead
to
:hange will
a
the
*
i
time
in the
occur
economic cycle we may expect to
see
a
reversal
of
the
present
one-
indebtedness,
tightening
to
market.
totalling
market.'
-in
moves
When
velops, either
likely to be
the
money1
this situation
of
two
History
de^
trends, are
in
seen
the
bond
repeat
may
it¬
of' the
ment market.
.
have discussed two
we
for the
reasons
issuance
In
recent
the
years
bond
market
like
of
long-term
roller coaster.;
a
has
behind
the
issuance
current
economic
tool
has
gotten
to
be
obliga-i this lies the
ing
to
answer
paradox
the
upward
supply
•
on.
in other
Many
-
tendencies,
when
period of cold
a
institutional investors.'
When money eased, bond prices
went up, high
coupon issues werer
called for redemption and were
„
seem-
replaced with low
pe-
over-reliance
In
/national
the
a
financial
needs
*
quite seriit 'tended to
needs
of
the
Study
Christiana
on
to
be
getting
a
And
most
of
the
these *3% s
t
in
was
people
the
minds
or the
mind,
Request
est
Laird, Bisseil & Meeds
of
Telephone: BArelay 7-3500
N.
ac¬
Their sub¬
is not, to my
indictment of the wis¬
an
critics
should have
Results
count
as
sever¬
good
and
a
they
really got results.
"Members American Stock
Exchange
YORK 5,
most
reversal,
record I
•Members New York Stock
Exchange
BROADWAY, NEW
the
monetary authorities
had been too drastic.
-The
Y.
•
Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading
Dept.!
Specialists in Bank Stocks
new
3sr have
-
Bell
to
somewhat, similar
r
Treasury
market
To
through
ebb
and
demand
do
mo¬
try
to
market
that
would<
the
operation
flow
the
in
of
market
supply
of
and
place.
the
bond
tossed aroundJ
market to
be
long-term
by every financial eddy caused
by
efforts of the monetary au¬
thorities to stabilize the
business
cycle is also undesirable.
■
the
-
-
During the last
money the
long-term
have
matter
under
circumstances.
Once again the
-monetary author¬
ities seem to feel that our econ¬
continued emission of
used
of -faet
it
was
-
of
would
funds
The
effect
thethe'
long-term
the
that
was
did
bond
availability
the
building
assisted
reason
not
latter
calendar
the
by
that
the
and for that
bond
a;
of
mortgage market.
Administration
was
mosL
in
anxious
gram
felt
authorities
a
the5
As
strongly recom¬
time.
However^
generally
emission
stabilize
market.-
I
at the
Treasury
bonds-could
to
bond
mended it
to easy-
recourse
Treasury
been
Long-term
the
long-term
come
one
possible,'
*
recognition that the
a&
either
However, to allow
criti-
on
accom-
were
dom of their action.-Their
120
the
one
issued, the mone¬
tary authorities stopped tighten¬
ing money : and began to ease it
through the purchase of Treasury
bills
another.
choice
a
little too effectively. The'
that very shortly after
a
it's
cripple the market's ability
perform its essential
function,*
which
is
to' afford
freedom of
trifle
no
discounts."
to
this
for
that
issues-
coupon
be to
unjustified,
issued
were
fact,
sequent
Bulletin
of
low
substantial
Now I don't believe for
from
out
fact
mere
Securities Co.
Request
1953
they failed to achieve that
In
plished
tion
>
it
cism seemed to be based
premise that the end"was
-
-
criticism
of
to
money
necessary or desirable to
isolate one section of the
will
in
brought
hot for comfort.
end.
well-
:
of
3 Vis
can-say
national
on
deal
much
Those
too
might conflict with the
New
Treasury
authorities
>it became necessary, for
example,
to
tighten money for the sake
of
today
that
purpose.
They were designed to help cool things off in
economy which seemed to the
subservient to
demands of the Treas-
national-economic
here
recall
an
which,, in peacetime, is putting the cart before the horse. If
the*
you
.
tight,
off
ment-
specific
the
economy
fiscal
great
action,
was
addition,
the
became
depressthe bond market,
issues.-
coupon
subsequently,- when
sold
the
.
short-term
on
the
And
3y4s of 1983-78 in a sharply
declining bond market there was
war
threatening to become hot.
The
inflationary potential ~of
of
undoubtedly
on
long-term
consequent
on
translated
the long-term bond,
in
market with consequent effect
the bond portfolios of
of
with
ing effects
the
pressure
price level,
especially during
^as-
money,-
immediately been
into action
by the
And in
money market managers.
,
billion
were
balance
/
-
rnarket;t.flationai^r
of paper
or
into
inflationary
Proposed Plan of Merger
NEW YORK 5, N.Y.
us
Prospect for the Future
when
of a long-term bond is this. A
long-term bond is not only less
Analysis of the
March 4, 1955
stabilizer
a
expected to be undertaken.
-
know, the shorter
you
supply of money
economy
CO., INC.
the
Looking
floating a longthe term of such paper the closer term
Treasury issue at the very
it is to money. And, everything t time
the, Federal
Reserve
is
else being
equal, the larger the * tightening up upon the - money
of
STREET
as
long end of the bond market
when in
mar-* a
over-abundance
an
»being, v this need
WALL
Now let
look at this type of bond's
a
ther money market moves can be*
the
issues
behind
reasons
long-term Treas¬
a
correcting these conditions
self, in which event * the long-'
inherited from the previous Adterm 3s will experience a series
ministration is now evident. The:
6f price
mark-ups such as took
first refunding operation for 1955,
place.'in
the
Treasury 3^4 s of
during which the long-term 3s 1983-78
under
similar
circum¬
were issued, is now
history.' The - stances: ' Or the
money
market
schedule of maturing issues iudimanagers may decide to use the
cates that, for refunding purposes,
new
Treasury * 3s as
both
an
the Treasury wilJ-Tiave to make
anchor and a yardstick for thd
only three additional trips to the
long-term
institutional
invest¬
m\ good
ury,
ONE
the
short-term fi-: inflationary than a short-term
the
immediate vbond, it can also be used as a de-
during
developed
ous.
M. A. SCHAPIRO &
take
A
to
nine
life.
ury bond at this time.
on
postwar years, the money
make
on
of
made
with
deflation-*
1953,
issues
60%
it
Thus far
only part of the story,
result of the Treasury's per-
of the government
Copy
than
of
note
potential value
billion of which 55%
certificates.
Notable prog-v
market
was
financing for the long-term
BANK of the MANHATTAN COMPANY
more
the
a
So much for the
another
came
with
of
the issuance of
government
about
year
argued,J. year.
was'
financing;
the
THE CHASE NATIONAL BANK
times
market
in the cost of carrying the public* son
investments,
for longer
periods.
Thus a long-term holding will tend to smooth out
such
influences on earnings as rate
changes, economic swings, catas¬
trophic losses, the dividend irregularity discussed
earlier, etc.
Hate changes may not take
place for five years, and frequently
companies will have to contend with highly unrealistic rates
for
such a period.
For example, the loss and expense ratio on ex¬
tended coverage (which covers such hazards
as last year's hurri¬
canes) was quite unfavorable for the carriers for five of the
years ended with
10
money
Every move
long-term Treasury bond at this
ket?
by the market managers with re¬
Particularly as our central:* moment,
namely,, it is less inflaspect to reserve requirements, the
banking system, the Federal Re-f
tionary than a* short-term obliga—
rediscount rate, etc., moves de¬
serve, had become highly skilled
tion, and it helps to end the merin conducting these operations.
signed primarily to influence-thery-go-round of too frequent reactivities
of
commercial
banksr
However, bookkeeping savings funding operations. Another rea-
examined is (again using a five
the relationship of a company's loss reserve
premiums for the period. The significance
The time element is
emphasized here because, as
insurance stocks usually give best results if
held
because
cheaper
was
the
year
set-aside
the grounds-
on
Since it
centrating Treasury
Another factor that may be
to
*
Treasury
certificates
year
the taxpayers money by con-
save
economic
con-
During
enforce
ress in
to borrow short-term money than
long,
operations.
'"
defended
was
of economy.
-
market
were
of funds,
source
into short-term paper.
This de-«
parture from standard fiscal prac-
as
horizon.
Re¬
active
less
caution now deemed appro¬
priate by the watch-dogs of our
mer-
when
Federal
of
ary
of
almost
the
on
issuance
to
to
king of
a
an
way
up
the
the
time, consistently rolled over at
maturity into more of the same,
and
some
maturing
long-term
bonds
were
actually
refunded,
tice
conduct
the
the
good
the
of
market, plus
long-term
Treasury bond is action in unison
about $59 V2
the cheapest
was
with
the
market
Last
preceded the present
short-term paper, was, for a long
policyholders' surplus);
economy
in "practice
Administra-
Because the short-term market
preceding
bring in
ups
which
Federal
the
steam.
part
policy
in
aside from its weekly bill financ-
borrowing; ing,
regime.
of growth of investment income
for, let us say, five to
10 years; the change in the value of assets. This
last factor might
well be examined for even over 10
years in order to
many
the
of
Loomed
banking* gregating
principle came of which
This
on
preferably as many as 10; the expense
(which is the relationship of unearned -pre¬
liability to capital funds,
such
be- overshadowed
during
in earnings; the relationship of
using earnings for a five to 10
profit margin averaged over at
the rate
out
emer-*
govern^
central
of
provement
and
exposure
reserve
of
ease
techniques,
are
evaluating fire and casualty insurance stocks it is well to
give consideration to:
the
which follows the progressive im-
years
•
the
turning
and
The
the
con-
order
much
the
ease
of tinuous refunding problem.
One
btrsi-* Treasury operation
was
hardly
However, because of the
requirements of wartime finance,
is arrived at
five to ten
of
to
ry-go-round
ment.
earnings: 40% of
fire stock, and 35% for a
a
for
of gen¬
verge
represents
on
Treasury
needs
the
and
gency 'demands
In this Calculation the equity
reserves.
premium
Also included
the
serve
operations
ness
or
unearned premiufn reserve at the date chosen.
to
self-liquidating'short-term
casualty insurance stock is
capital, surplus, and an equity in the
a
Treasury
in
money
public finance into
source
'
of these stocks have been selling.
of
readily available
close
offc large scale funds it should be
that year; "58% in 1950.
This condition contributed, along with
rising market prices, to the rather meagre yields on which many
Liquidating value
the
easy
too
decision
serve.
paid off should avoid a rise in the cost of carbe funded
into long-term debt, rying the
public debt.
There is a very practical reason
Besides its basic economic unbehind this principle.
Since the desirability such financing came
income, is usually smaller than under
more normal conditions of
growth.
An indication %>f how
important it is for the fire-casualty in¬
dustry to be adequately equipped financially to take care of a
'
of
tinuing
the
teamwork
debt whicn can't be
investment
period of pronounced expansion is to be had from
desire
on
little
a
Money, therefore, is not quite as
easy as it was a few months ago.
And the long-term bond market,
consequently, has been on the.
heavy side. So, at precisely this
juncture of economic events, the
Treasury decided to come to mar¬
ket with a long-term issue.
(EDITOR'S NOTE: The foregoing is the Concluding Article on the
subject; the first instalment appeared in the issue of March 3.J
By ARTHUR B. WALLACE:
be
omy may
-
this tenet clearly.
out
Thursday, March 10, 1954
come
part
year
barrage
of
of
pro¬
in every way,the long-term
to
of
market
1953
1954.
dead
or
in
the
However,
cats
which
greeted the issuance of the 3V4s of
1983-78
assisted
in
scaring the
off their
money market managers
•Volume 181
So these 3Y4S led the
course.
grade
bond
price
in
Number 5410..:..The Commercial and Financial Chronicle
market
advance
a
which
of
wave
cently
into
high
rate
count
lower the redisthe level of re-
could
Reserve
rapid
a
.
and
culminated. quired reserves.
refund! ngs
of
.
■
„
-
The money borrowed from the
commercial banks was to be spent
on public works which, in turn,
would stimulate business activity
re-
issued
high coupon corporates which, in some cases had
been out only a matter of months,
Now
when the business cycle
will be as full of thrilling opporr
tunities as were those which are
j now history. I believe this nation,
* in which we have the good for'tune to live, is on the threshold of
a renaissance which holds forth a
truly magnificent opportunity to
term market may be
.
.
ceive
heavy subscriptions for its
iong-term bonds.
However, the
mere public
knowledge that such
an
offering would not be shut off
completely, and was, iii fact to be
expected at approprgate-intervajs,
would ".help
keep^the Idng-tejm
bond market from running out bt'
bounds on the upside, just as the
of
prospect
keeps
it
bounds
running
out
the
downside..
If
can. be
regarded
bingers of such
ment of
of
a
new
Such
policy,
a
moderate
the
in
which
needlesslv
bond
their
alter
mi" hl JlS
investors
traditional
ideas
garding what constitutes
yield
spread
and
ments
credits.
Such
eeivably
think
a
between
top
-
re-
proper
govern'-
grade
could
con-
I
narrower.
it is significant that the
40
triple
We at Salomon Bros, and Hutz.are. primarily bond dealers and
underwriters
and
are ready
willing
addition
We
broken
successfully
take
distributed
on
a
position, to act as pnnci-
a
Pals in the purchase and sale of
basis points above
the yield of high grade institutional
investthe new Treasury 3s of 1995. In- ments
in volume.
This is the
cidentally, a lar e volume of the backbone of our business. And
Ss, perhaps as much as 500,000,- that is why we make every effort
basis
have
000
at
been
delivery,
and
traded
the
commitments
factor
spread
a
is
for
effect
still
14
future
such
of
J^nfaid sSlmeX™
the actions and statements 01 tne
market
a
be reckoned
to
of
aetivl
with.
the
Market
Bond
In
is
As
evident from
the
exist
not
does
Not
Vacuum
a
remarks,
ang
Does
Exist
the
forego-
bond
in
a
a vital part
economic
life, a
plays
market
vacuum.
It
in the nation's
role
that
has
been
growing increasingly important for at least a generation.
To. understand the significance of
the
part
the
to
come
scheme
of
things
review
to
in
assume
our
it
is
recent
seme
has
market
money
economic
necessary
economic
historv
The
the
and
severe
crash,
for
search
remain
of
business
the
of
if
found
wprp
controlling
future
the
cycle
booms
had
to
and
be
busts
British
A
Lord
Keynes,
economic
economist
the
had formulated
theory
which,
it
late
an
was
hoped, would accomplish this end.
This formula, which relied heavily
on
anism,
pair
the
market mechquite popular in
money
became
budget
In
idea of the
brief,
the
1930's.
was
always try to make the largest
possible markets at the closest
possible spreads between bid and
ask. We have found, on the basis
we
our
to
unbalanced.
be
created
by
A
big
that
ye»rs
est rates.
over
the past 45
volume,
narrow
nrofit"
Un'\°,r Pr0'1<!.
At this point
.
-
.
p
A
•
..
.
I should like to
ployment
be
to
caused
im—
by
Proved industrial techniques, and
frontiers
vanishing
the
for
T RrT
At Salomon Bros & Hutzler we
think these tatter figiures are here
to stay, We expect th^
larger,of Vna^cial
transactions
needs a bigger WaU Street or
sb ♦
care^
name
an^
center
financial
What is
hap!
Pening today adds up to just one
Mass
production
mass
.
begets
financing.
^hen tbe first great increase in
the Rubbc aebt came alo/2g as a
ing
P^amfinfnciL Jn
^olume of municipal Bnancing in
the period following World War 1
market, we organized
our municipal department. With
the opening of each new sector of
trading room at 60 Wall Street
come to be a national and in-
has
4prnationai
SUDermarket
market
deficit
bigger Salomon Bros. & Hutzler,
a larger staff, more regional of-
investment business looks
PaYing too much heed to such like opportunity, unlimited,
db"e forebodings, pause and conrp^ -g a giimpse 0f the future
slder the expansion plans an- as j envision it. It is the nlace
uounced by such industrial giants wjjere yOU wjn spend your lives,
fs. ^en ^ra^ Motors, General Elec- j urge you to make the most of it!
trie, and Ford, to name just a few
"packaged
later,
jn
research
surelv
the years
power"
which
will, sooner or
release
to
mankind
thus swelling bank
and helping ease interIn addition, the Federal
Threshold of
I have
make.
a
confession of faith to
I believe the coming years
only have
there.
Credit
a
which
trend
In
the
has
been
United
Policy Here
important psychological
very
market, but it would be
money
1
an
the
and
Undoubtedly,
likely
by
adoption
rise in
a
of
aware
the
other action
of which
There
is
would
Now Inv. Planning Assoc.
what
could
be
be
and
ing action
could
which
than
more
a
discount
the
an
/Vrnoiu l^iain
Arnold Diamond, limited partner in Bernard, Winkler & Co.,
passed
away
Feb. 25.
monetary
what
done
to
down
market
the
stock
because
or
is
well
market,
the
that
powers
the
upon
preceded
margin requirements.
money
by the
restriction."
be
authorities, the most
borrowing,
taken
passing effect
in
the
slow
consumers
be
would
rate
increase
but
another turn in the
as
"moderate
limit¬
be would
government
market.
The fixed
income market under credit limiting action is
usually
the first to feel the added pressure which is
applied by the mone¬
tary authorities.
*
Market Reassured
not
was
*
was
raised, the
not exactly on the weak side that similar action
unlikely
as
far-as
this country
these lines did not have
ground because buyers
was
concerned.
bolstering effect
a
market, and quotations of
many
Belief
was
along
the government
upon
of these issues continued to give
not inclined
were
.
Discount Rate
on
Accordingly, when the bank r,ate in England
feeling
to
do
more
than
make
token commitments..
However, word reportedly reached the financial district that
change in the discount
a
rate
was
not imminent and
in better prices for many
Treasury issues.
tone in the governments was due to short
minor
a
money
pick-up
in
purchases
market will probably be
the pressure which is
operations
the
trend
on
by
it, it will take
of
Idaho
Edward
—
Edward
Barnes
more
a
though
than
the
"open mouth
lasting effect
B.
With Kidder,
The
upon
are
B.
Clark
and Roy
principals
of
Peabody
(Special to The Financial Chronicle)
Clark
Company, Salisbury Building,
has been changed to Barnes and
C.
Even
sensitive to talk because of
more
quotations of government securities.
FALLS,
name
covering by trades and
under existing conditions to have
of
this resulted
Part of the improved
investors.
Now Barnes & Clark
IDAHO
Clark.
TUCKfA"°riE'
name of Modern Investors Plannin§ has, bee.n changed to Investment P anning Associates. The
firm 1S located at 111 Lake Ave.
"neutrality" at the present
policy of
a
of
question
no
mortgage lending
have
of
an
increase in the discount rate from
Mj %, it would be interpreted most likely
screws
the
upon
The policy of "active ease"
has given way to one which is termed
time and if there should be
effect
definite confirmation of
a very
important change in monetary policy.
firm
a
Renaissance
-
not
BOSTON,
Mass.—Gerald
R.
Curtis has become connected with
Kidder, Peabody & Co., 75 Fed¬
Street.
eral
the
firm.
Joins F. S. Moseley
J. F. Jordan Adds
ahead.
on
inflationary
over
and
niamnnrl
Nation
the
upon
momentum
"Neutral"
came to the
tional
atomic
raised from .3%%
States,- the
discount rate is not a punitive rate and, even if increased
by the
monetary authorities, it would not be at a penalty level.
followed
the "mature economy."
the
was
was
On the other hand, an upping of the discount rate here would
to make bigger and closer markets. To us the financial future
of this nickel and dime institu-
consider the stu-
some
A.T.&T.
opportunity. Twenty years
ago
it was fashionable to view
with alarm the bleak prospect of
pendous economic significance of
influence
gaining
*•
you
not
helped by the action
to 4V2%.
sure, there is no connection between what took place in
England and what might be done in the United States, aside from
the possible psychological reaction.
The English bank rate at the
present level of Wz°Jo is a penalty rate and it will have a very
definite
*
of eco- fices, and bigger trading Positions
Before
government market here
be
,
borrowing
million
$250
million for
The
To
^national supermarket market
system,
reserves
a
i
of the British when the bank rate
""jt trading generates a greater the
appronTSe £££
volume °f new profits than does ket we addedIanappropi ate trad
funds from the commercial bank-
ing
experience
mean/TeTst
compensatory
budget was supposed to work as
follows:
In
times
of depression
the Federal budget was to be deliberately
twt
,
result<:>f that ww,
It is, of course, a large volume, ment
T^adlr}^
small unit of profit business. So launched. When the .road, bulldr-
^ ^ Ih/fiS ofehem^l
oTIhe-com'peSoTy
market.
money
British Bank Rate Rise
Our firm was started before
World War I, May 2, 1910 to be
exact, to deal in short-term pap .
nomic
The Keynes "Compulsory Budget"
the
are
will be very constant.
automation, technological unem- this, in turn, we think calls for a
hp avoided
to
^m™nplace
§£*£ $650
change in the trend
sure, a
have a beneficial influence
However, these elements at the present
showing no signs of lessening in intensity and, because
this, it appears as though the pressure on the money market
of
of
excesses
,
passing of time. To be
of-certain forces in the economy could
tim
some
horn
limiting policy of the powers that be, and
"indications yet that this pressure will not be in^
no
creased with the
upon
comment on the potential future
volume of securities trading to
*
this predominantly youthful
Our expanded XJ. S* economy
audience. You hear a lot about needs larger financial centers, and
the
economic
an
there 'are
become
securities from an institution
heeding cash to an institution
seeking investments, and vice
Xfrsa- If we %e} °ut °* s*eP wlth
the m™ey mafket we fal1 ln our
essential function.
of
cycle.
dynamic
a
On the other hand,
means
by
arbitrarily be
strait
jacket
society, and still
into
planned
plenty.
de-
couldn't
economy
a
means
ousiness
that
jammed
of
and
the
realized
signaUcd
intensified, the
ways
controlling
Men
prolonged
wnfch wasP
1929
ment securities have-been under a considerable amount of pressure:
Tn
^i^nts havl^
Depressed
because of-the .credit
$50
3
thing.
'
pression
was^mmSsed^v
market mechanism. They
facilitate the transfer of blocks of
money
'
•
et
.
cmd eager at any and all times,
market conditions Permitting to
3.12%
-
Structure
that the money market is being primed a bit
through the medium of "open mouth operations," which is, not
an
unusual development since this particular kind of operation
has been used on many occasions in the past. Prices on govern¬
The financial needs of our com-
And, as we have plex economic structure have had
seen> the Play of economic forces to be expanded, together with the
thereby released in the bond mar- growth of our population, the inket does have a profound effect crease in our standard of living,
uP°n on bond Prices.
and the rapid development of our
A rated Chesapeake
and Potomac Telephone S%. were
year
,
nomic stability.
ler
in
,
,
It is evident
»
our country,
corporate
spreads
become
to
.
Demand for short-term issues continues very substantial and
Price
,
fnr
system's attempts to maintain eco-
swings
wide
rnarket.
institutional
cause
would
in the
a
long and intermediate term maturities, with the proceeds being
invested in General Motors Acceptance Corporation bonds..
uf^^nomirdvnamn whfch^
^ economic dynamo which
procedure in our central banking
market.
sold out
the uptrend in yield is not hard for these buyers, to take. Pension
funds have been making some selected downtrend purchases but,
in not too "much volume. Some tax losses have been taken in the'
aa? •ShTmon~
*b n!SpH
Ihl
money market * mechanism * thus
devised has now become standard
stability in the long-term
levels which appeared
condition, put on a
after reaching
temporarily
.
•
large when gathered together.,,.
World ln Pensl0I\ funds, insurance com-
hardly .got under way when
War->11 came along,, and the deele- pression vanished.- However, the
a
future.
somewhat improved tone, it is a "very
professional and thin, market and there is no evidence available
yet, that investors are going to do much more In* thek way of buy-?
ing than they have done in the not distant past. This means scale
down buying, with the size very limited.
y
we
least
at
Nonetheless, in spite of
-
har-
as
Governments
on
modest rally helped considerably by rumors that changes
discount rate were not to be expected in the immediate
reserves,
for controlling the business cycle
the
policy then
a
look forward to
may
money
from
on
3s
new
4asy
future,
lose
indicate
to
f°re us- The future is our problem-
and money Cent-Savings Bank, the Dime Savbecome harder-, to -ings Bank, and so on. The instituborrow.
Rates of interest would tionalization of small savings, the
tend to, rise. And, if necessary, amounts put by for a rainy day,
the Federal Reserve could.nin-. °r,fpr retirement, by millions of
crease the rediscount rate, and thrifty people from one end of the
Ihe amount of required reserves,
and
other, is the stuti
^ so' head off ,-a : threatened ^which has made the institutional
boom which might later result in investment .market the financial
a bust,
'
giant it is today, pese savings,
The-application of this system individually smalh but collectivethus
would- then
Reporter
Government securities
What has all this got to do with
Wall Street? Just this. The institutional investment market startthe budget was to be brought into ed out as a nickel and dime busiJcircumstances the Treasury would' -balance
and the deficit elimi- ness, just like .Woolworth's. You
neither expect nor want to re- mated. The banking system would still hear such names as the Five
selling price of the long 3s as a
yardstick.
> \
Naturally under such economic
Our
By JOHN T. CHITPENDALE, JR.
today,
9ur financial, as well as our
social institutions have .evolvedaggressive from the imagination and aspiraof interest, tibns of those who have gone be-
was
re-opening the new Treasury 3s or by bringing out other
long-term Treasury issues during
periods of easy money using the
.
you young men
hoped, be more
lenders at lower rates
thus further aiding business and
-the general economy. The phrase
then used to describe all this was
"Economic Pump-Priming.7' Then,
when business got going again,
achieved by
*
.1
.
and employment. Banks benefitchanges again a degree of stabil- ing from-increasing reserves-and
ity hitherto absent in. the longr-a lower rediscount rate would, it
either
51
(1179)
(Special to The Financial Chronicle)
BOSTON, Mass.—Danforth Beal
(Special to The Financial Chronicle)
Mass.—Vincent A.
Drosdik, Jr., has been added to
the staff of J. F. Jordan & Co.,
BOSTON,
92
State Street.
has
F.
S.
been
added
to
the
staff
ofA
Moseley & Co., 50 Congress
Street, members of the New York
and Boston Stock Exchanges.
52
(1130)
The Commercial and Financial Chronicle
Atomic
A MUTUAL INVESTMENT FUND
Mutual Funds
NATIONAL
INCOME
NET ASSETS of Scudder Fund of
shares
135 bonds, pre¬
Canada Ltd., investment company
and
concentrating its investments in
over
ferred
common
stocks, selected pri¬
diversified list of Canadian
marily for income
ities
sibilities.
For
pos¬
CPC
•nd mail with your name and address.
NATIONAL
SECURITIES
&
Broadway,
New
secur¬
increased
ident.
CORPORATION
Feb.
5,
York
New
Net
28
assets
of
fund
the
cluded
on
5,000
shares
Foundation
amounted
to $34,463,122 Co. of Canada Ltd.; 2,975 shares
Dollars),
equal
to Dominion Glass Co. Ltd.; 11,250
$34.82 (United States Dollars) per shares Thrift Stores Ltd.; 40.000
share
on
1,000,000. outstanding shares
Steep Rock
Iron
Mines
Established 1930
1?©
Ltd.; 1,025 Canadian Packers
Ltd.
"A";
5,000 shares Falconbridge Nickel Mines Ltd.; 2,000
a
(Canadian
York
shares.
—-^-55S55i5iii«
WWWsaMaajr
muNCToii "
with
net assets
compared
Ltd., of which 20,000 shares
(Canadian Dol¬
lars), equivalent to $32.92 (United
States Dollars) per share, on the
number of shares
same
on
The fund started
1954.
on
r jStan
Such
$31,916,401
June
held at the end
CERTAIN
of the
were
quarter.
COMPANIES
in
operations
the
of the management of the Diversi¬
14, 1954 with $30,000,000
fied
(U. S. Dollars) net assets, equal to
$30 per share.
\
;
Growth
Stock
tual
Atomic
Fund
Fund, Inc.,
of
Development
March
on
amended
4
registration
Mu¬
filed
corded
an
statement
fied," Mr. Steers said.
"How¬
ever," he continued, "we feel that
the present state of atomic devel¬
underwriting
of
approximately
1,000,000 shares of common stock.
Equitable Securities Corpora¬
tion, of
Nashville,
Tenn.,
will
opment offers an unparalleled in¬
vestment opportunity. We believe
that it is important that such in¬
head
sible, since development is
ceeding at a rapid pace."
pro¬
the
1954
the
underwriting
vestment be made as soon as pos¬
group.
Upon completion,
the under¬
writing will add more than $15,000,000 to the Fund's total assets,
which
are
in
now
ot
excess
000,000.
gram
I.
Steers, Jr., President
of the Fund, said proceeds of the
underwriting would be used to in¬
crease the holdings in the securi¬
ties of companies already in the
atomic energy field.
It
Elizabeth, N. J.
will
also permit the Fund
The
largest
investment
stocks which
1955 had
a
was
During the last six months in¬
in
creases
value of $30,740,484, or
about 89% oi the total portfolio as
with
compared
m 1213
Prospectus from
your
investment dealer j
PHILADELPHIA
or
"
3, PA
approximately
77% on Nov. 30. The largest group
holding of common stocks was
metal
and
mining- shares,
ap¬
praised at $6,371,945. Other ma¬
jor group holdings of common
added
beverage, $1,896,448; merchandis¬
ing, $1,818,638; public/utility, $1,-
in
ment
the
the
of
Fund.
'
'
the
n
MUTUAL FUND.
Diversified
Growth
since passage
of
the
atomic
energy
act, the
Fund's total net asset value has
grown
is
FUND, IllC.
..
'
designed to provide '/•
managed investment
•
in
a
variety of
of Commerce; 2,985 shares
Gypsum, Lime & Alabastine, Can¬
ada, Ltd.; 20.000 shares MacMillan
&
-
companies participating:
in activities
Bank
resulting v :
from Atomic Science.
Bloedel
Ltd.
"B";
400
shares
little
000,000.
unusual
growth to present net as¬
than $20,000,000 in a
than
eration
14 months of
the greatest
was
listed
in
Fund
the
Daniel
are
dent and
E.
field
of
electronics
Noble,
director of
was
1
on
sterdam Stock Exchange.
re¬
an¬
been
the, Am¬
Fund had
March
of
as
it
.Sales oh
the first - day. the stock was
were in excess of $750,000. ;
op¬
ever
time,
same
nounced that the
more
more
/.
...
the
At
v
-
.
from $4,957,000 to the pres¬
figure of $20,000,000. In Feb-ruary alone the Fund's total net
assets - increased
by almost $4,ent
to
THE
AXE-1IOUGHTON
listed
BROAD?STREET Investing Cor^
weekly
business index has advanced dur¬
poratioh^rwhich;;
Stock Fund to seek out companies ing the last month/and is .6%%
that'"offer prospects
All
of greater "higher thari the *1953 peak.
than average growth." It has hold¬ the components of the index ex¬
.
MUTUAL
"Our
sets of
hold
to
:
-
.
.
manage¬
„
ATOMIC DEVELOPMENT
deem
picture
In the six months,
/
participate to a greater extent in
private financing of new com¬
panies which its directors and ad¬
visers
in the
which
major- factors
were
bright investment
now prevails. -
the
promise.
law and President
.
policy of the
ings in 15 companies which are in
\
-'
406,288?' steel;'$1,114,540; automo¬ electronics.
bile; $672,500; 'electrical equip-,
Included
are
Admiral
Corp.,
ment; $654,331.
Beckman Instruments, Inc., Con¬
; :
The- fund held Government of solidated Engineering Corp., Inter¬
.Canada bonds with a quoted value national Business Machines Corp.,of' $2,222,625;/ corporation
bonds Minneapolis-Honeywell Regulator
and; notes, " $1,333,550;
and pre¬ Co., Motorola, Inc., Polaroid Corp.,
ferred stocks, $177,500.
Radio
Corporation
of
^
;
America,
Seismograph
Service
Corp.,
as
;
Among the purchases of com¬
well as those mentioned above.
mon stocks during the third
quar¬
Technical
consultants
to
the
ter were 2,000 shares of Canadian
ATOMIC SCIENCE
through
to
It is
$5,042,863;: construction, $4,028,370;. paper,- $3,752,813;
banking
and finance] $2,408,000; food ana /
m
ill
made
Holdings in National Cash
Register, Raytheon Manufacturing
Co., Texas Instruments Co., and
Westinghouse Electric Corp. were
stocks included: petroleum shares,
l/h'cst
were
holdings in
Admiral Corp., Columbia Broad¬
casting System, National Research
Corp., Sprague Electric Co.
Feb. 28,
on
that
said
Steers
Mr.
atomic energy
Eisenhower's atoms-for-peace pro¬
$20,-
.
common
by a new open-end fund,
naturally we are most grati¬
and
with the Securities and Exchange
Commission
to
cover
a
special
Newton
electronics field show outstanding
growth potential in the judgment
Nov. 30,
The
Utili¬
Gas
months
information folder and
RESEARCH
Great Northern
during the three shares Calgary & Edmonton Corp.
ended Feb. 28, 1955, the Ltd.; 20,000 shares Western Lease¬
third quarter of its fiscal year, ac¬ holds Ltd.; 1,000 shares Bell Tele¬
cording to a report sent to stock¬ phone of Canada;
holders by Hardwick Stires, Pres¬
Sales
of
common
stocks
in¬
Free
prospectus, dip this ad
*
Equitable Securities Corp. to Head Underwriting Group
ties
Currently invested
in
Development Fund to
<
Capital via Stock Issue:
Increase
By ROBERT R. RICH
SERIES
•
Thursday, March 10, 1954
...
Vice-Presi¬
Motorola
in
charge of the communications and
electronics
cept
lumber
There
have
loadings
vanced.
-
-
few
if
.;
ad¬
' •
,
:
definite
down
in this expansion of general busi¬
are
any
reported
has.
record'sales of new shares in each
6f
a
good start
in' 1955.,/
;:
^
' -V-
•
Francis:F/ Randolph, Chairman
'
of the "Board arid President of the
old
25-year
1
mutualfund,// an4
nounced /
yesterday that; sales: in
January: and i February / totaled
ness
activity Axe reports.
The $2,894,000* -up 35% over sales, of
durable goods raw material price $2,144,000 reported in the first two
index for example has advanced months of 1954, This was the high?
during the month and has almost est / total '-of/; any/; two'/.month
completely
recovered from the period in the mutual! fund's his¬
indications
of
slowing
any
1953-54
decline.
foreign
curtailment
of
It
is
that
tory. /
developments,' including
true
African
-
copper
production by a strike, have been
partly responsible for the recent
advance in copper scrap prices to
well above the 1953 highs, Axe
comments.
But steel scrap prices
a
.
!
:
January sales of new shares set
record > high
for any month,
ing
to
sales
accord¬
to.; $1,629,000,
amounting
Mr. > Randolph. February
were; $1,265,000,," approxi^
division; and Stanley
mately 18% higher than in Febru¬
Ltd.' 2,200 shares British-Amer¬ Piatt Lovell, President and direc¬
ary last year.;.
/ •/';
"7.
">•;
ican Assurance Co.; 3,015 shares. tor, Lovell Chemical Co., Water- have also advanced and have re¬
Shares
repurchased from-.-in¬
covered almost two-thirds of the vestors
Dominion
Stores
during the two / month
Ltd.;
14,000 town, Mass. He is a director of
1953-54 decline.
Aluminum scrap period totaled
shares
Hudson's' Bay
$872,0003/ compared
Co.; 4,000 Raytheon and National Research
with. the. $324,000 reported in 1054.
shares/.'Aluminium
Ltd.;, 6,000 Corp. and was formerly director prices have also advanced.;
of
research, Office of Strategic
shares Cerro de Pasco Corp.; 5,000
Manufacturers' new orders, and Net-sales of $2,022,000 for: the twq
Services.
-shares 'Gunnar Mines
the ratio of these orders to .invent months " Were * up
11% Over < the
Ltd/; 1,800
shares Bathurst Power & Paper
SOVERIGN Investors reporting as tories, have continued to advance. $1,821,000 reported in the first two
Co. Ltd. "B"; 11,000 shares British
months of 1954.
The only important exception to
of Feb. 28, 1955 shows record high
American
Oil
Co.
Ltd.;
13,000
this general increase appears to
The mutual fund's assets totaled
figures in total net assets, number
shares
Imperial Oil Ltd.; 3,000
have been in the electrical equip¬ $69,182,000 on February 28, com¬
of stockholders
and
shares out¬
shares Interprovincial Pipe Line
ment industry where there was a pared with $64,138,000 on Dec. 31,
standing. Assets were $1,335,420.04
Co.
decline in new orders in Decem¬
1954.
compared with $846,507.14 Feb. 28,
Also
10,000
shares
Hollinger 1954, or a net gain of more than ber, according to Department of
1955 YEARBOOKS of the Eaton
Commerce figures.
Consolidated
Gold
Mines
Ltd.; 57% for the period.
Philips Incandescent Lamp Works
;
.
.
•
m m pacts and free prospectus
v
AflMIC lEVElflPMENT SECURITIES C9.
WU THIRTIETH STREET, N. W.
WASHINGTON 7. 0. C
9,535 shares Gatineau
Power
The
Co.
net
asset
value
per
share
Ltd.; 2,960 shares Shawinigan Wa¬
ter
&
Power
Co.; 1,925 shares
increased from $8.42 per share on
Feb. 28, 1954 to $11.57 on Feb. 28,
Steel
1955,
Co.
of
Canada
Ltd.;
2,000
an
increase of 37%.
Hove You Considered
ELECTRONICS
as an
You
invest in
can
Fundamental Investors, Inc.
Investment Medium?
a
productive capacity of the
is so high, Axe states,
however, that these increases in
incoming orders have not brought
about any widespread increase in
unfilled orders, except for pri¬
mary metals. This is not necessar¬
ily unfavorable because conceiv¬
ably business activity might re¬
main
high indefinitely
without
high unfilled orders if there were
an
even
through
quickly
duction.
Manhattan Bond
FUND, INC.
•
There
Fund, Inc.
dealer
or
your
Diversified Growth Stock Fund, Inc.
'r
TELEVISION SHARES
1 35 S. Lo Salle St.
115
Broadway
PROSPECTUSES
AVAILABLE
FROM
YOUR
ON
LOCAL
THESE
MUTUAL
INVESTMENT
FUNDS
DEALER.
OR
Chicago
-
1
CITY
Los
Hugh w. long and company
Angeles
San Francisco
Incorporated
Westminster
at
Parser, Elizabeth 3, Tietv Jersey
completed and are now be¬
descriptions of the objectives, in¬
policies, and manage¬
ment of the Funds together with
schedules and charts showing the
vestment
record and
growth of both Funds.
The Books record that on Dec. 31,
1954, combined assets of Eaton &
Howard Balanced Fund and Eaton.
&
Howard
Stock
been
no
Fund
exceeded
pro¬
'
.
•
:
'
/ :
-
.
important
have been expanding their
inventories
considerably
during
27/ie
'
net
FUND, Inc.
assets
of
reports
$21,879,824
on
total
Feb.
at
the
end
of
the
company's
fiscal year on Aug. 31, 1954, and
v/ith $13,865,950 on Feb. 26, 1954.
Net
asset
value
per
share was
$7.19 on Feb. 28, 1955 against $6.06
on Aug. 31, 1954 and $5.47 on Feb.
28, 1954.
J
-
PUTNAM
FUND
I
r
\
eSjoAton
'
i
28, 1955, compared with $16,614,077
Cleveland
NAME
been
$179,000,000.
has
and
ing issued by the management or¬
ganization, Eaton & Howard, In¬
corporated, of Boston. The Year¬
books contain complete detailed
group
TEXAS
New York 6, N.Y.
ADDRESS.
of
-
the last six months.
MANAGEMENT CORP.
Chicago 3, HI.
curtailment
by
Fund
Balanced
Howard
Eaton & Howard Stock Fund have
change in the inventory situation,
investment
mail coupon to
of
although the companies included
in the transportation
equipment
booklet-prospectus about the
Company from
flow
in demand would be followed very
TELEVISION -ELECTRONICS
(
substantial
tion would be that any slackening
Diversified Investment Fund, Inc.
the shares of
Gel the
and
incoming orders. The principal un¬
favorable aspect of such a situa¬
diversified group
of electronics securities
&
The
country
:•
i
i:
»
Putnam Fund Distbibutom. Inc
50 State Street, Bostoa
.
Volume 181
Number 5410... The Commercial
and Financial Chronicle
(1181)
;
Putnam Growth
at
stocks
Record;
i
to
growth
Putnam
Fund
of
of
The
year-end.
Boston
months
has
continued
during the first
two months of 1955, shareholders
were told at the annual
meeting,
George
.
Putnam
Putnam,
chairman
VX
on
in
the
Sales for the first two
about the same as
of
TnTAT
were
f,
,
^
,
a
year
$77.07
In
iargelv
to
appreciation
Presided
asset value
same
was
$23.57 to
period;
requested because of the in-
Philadelphia
creasing difficulty in finding attractive high quality bonds in
and
value per share of
Inc., commodity mutual
organized in
Fahnestock
THE
LATEST
edition
and Figures about
of
Fund,
1923
&
19T5n4;
Inc.
and
Pre^t, reported
Mr.
per
from its recent short positions
both col'fes and grains.
in
-
-
—
;
The revised
Donchian
the
IIIC
gain to the fact
gCllU
LU
Hid
xogo
that Futures, Inc. realized
profits
-
—
•
suits
VEGH
MUTUAL
that
reports
increased
its
Fund,
net
from
asset
$38.38
three
Co.
has
served
assets
of
prepared
statement
with $9.45 at the end
10HQ
coin
nf
1953, a gain of Avor 33%
over 33%.
During the year, the Fund real¬
ized
capital gains of $1,320,000.
joined
Inc.,
the
amounted
year
$2.77
per
Assuming ' reinvestment
Inner
fprm
long-term
nanital
capital
Vain<;
gains
ai.sl"Du
tions, the appreciation during the
year was 57%. This increase, the
report points out, compares with
rise
rise
a
a
of
OI
44%
/o
Industrial
-
in
in
the
DOW-Jones
oomo
Average -for the
same
period.
-
During the quarter ended Dec.
/Acx x/
31, 1954, the net asset value per
x
share increased
in
-
16.3%, from $48.59
^3
^
Total net assets
nc/i
Dec. 31, 1954,
on
wprpl^fiftq8 466 95"compared with
were $6,098,4bb.9D,
C0mpdicu
$4,663,233.18 on Sept. 30, 1954,
and $2,174,589.85 on Dec. 31, 19do.
*
The
k
1
ports
that
share
its net asset
frnrn
from
increased
AH*-.,
Inc.,
value
xc
re-
per
4:10 03
on
$ 0.U
Dec. 31, 1953 to $14.02 on Dec. 31,
jg54#
new
STREET
r
poration reports
Investing
it
tv
Cor-
01
1(1^/1
10'■a
as of Dec. 31, 19o4
Of
I904
1
total net assets of $5,808,084, equal
«n $18 62 oer
$3 707 468
share
share, compared with
equal
Dec.
on
to
$14.21
per
1,
of
i
shareholders,
78Q
equ&1
with
$39.94 per
^
$45 25
at
the
were
vahi.e at the end of
jjew
91.7%
the period,
three
months
net
asset
practically
ago.
markets
down
and on corp.
-a;-; 10,000
Trane Co.; 10,000 shares St.
Mines Ltd.; 5,000
Co.;
500
shares
*
^
-
Life
The
corn
Lincoln
National
ai
Life
Line
-1—-—
Protective
were
JUigiiLing
ruwci
UVUV.U.V..
eliminated
20,000
AU.OUU
10.000
shares
shares
from
the
Duquesne
American
biittico
Royaiitc
on
Co..
shares The international silver Co._
U. S.
States
15 CENTS A SHARE
&
affiliate,
net asset value
31,
1954
Securities Corp,
92nd Consecutive Quarterly Dividend
of $50,556,700
*r
&
is
This
is
265
for
of
U1
United
and its
International
after
for indicated
a
deduction
value
of
U.
of
II
Dividends
ers
24
Quarterly Dividend
U.
S,
&
per
Boston
Net
assets
year-end
of
were
U.
S.
of
the
UiV
the
*1V
SAN
-SAN
Foreign first
York
ff
dolph
.
-
second
the
on
tilt;
the
New
exchanges
Calif.
—
—
V-
--
and
San
—— —
Fran-
is
&
.
_
now
(2) Standard
Poor>s composite index of 480
shoWs
shows
them
to
Rudolph
than
1929
rails
arid
and
58%
are
market
are
respectively.
dustrial
group
f
will
u
it
is
be
&
Hugh L.
—
of
Bank
If the in-
noted
BOSTON
BOSTON
earnings per share
this basis, it would
it
J.
few
stocks
out
are
a
(Special to The Financial Chronicle)
TJ/li VJiN
BATON X\W U vjrih, ua•
ROUGE, La.—Emile J.
Bourg, Jr., and John R. Jeter have
ajiuaav.
w »
-
:t:«n
of
means
It
providing
should
Bank
your
Investment
Dealer
Geo. W. Clarke Adds
Montgomery Street
or
FRANCISCO
the
above.
line
be
time in many years.
v
rise,
R.
Dark
staff
of
Building.
common
CHARLES,
has
Geo.
been
W.
La.-Alvin
added
Clarke,
to
the
Weber
that
prices has
number
a
of
would
•
have
Prior to this
_
stock
stock
Amerkan
Inc
interest
jarge
L
S yea^
was
ac-
which
lithium-beryllium
deposit in Africa. American
Potash
«
rhpmipal
nr^niypd
and
nolds
UXiU
50.1%
x
stock;
the
AmpnVan
Inc
J
i!
ta
1954
-X
Of
its.
common
iatter
latter
comp
company
w»j
manufacture lithium
chemicals at
piant t0 be constructed in Texas,
The debentures are
convertible
int0 class B stock at
$90 a share
a
and
the
beginning in 1961, will have
a
GJ1111VX115 fund desinking
benefit of
KJJ.
a
J-uuu
signed to retire $350,000
principal
amount
annually in the years
1961-1969, inclusive.
Sales during 1954
amounted to
$23,631,032 and net income to $2,510,909, equal to $4.38 a share on
the class A and class B shares.
\
American Potash & Chemical
lis
engaged in the
production,
mantl¬
facture and distribution of a wide
variety of chemicals which are
sold in the United States and
many
foreign countries.
Of
last
27t"™s to^ domestic
year's
agir-
diluted
In
other
words,
would
have
been
stock
book
■-
-
^
.
i
?^mica
?°
'
&lass trade;
?
14% to exu°rts; 10% to
paper industry, and 8%
factUrers
and
of
porcelain
giazes
the kraft
to manuenamels
j
With Baldwin, White
(Special to The Financial
BOSTON,
Kendall
White
&
is
Mass.
now
Co., 30
Chronicle)
—
Robert
H.
with
Baldwin,
Federal Street,
members of the Boston Stock
Ex-
existing
eauitv.
equity.
under
+
financing change,
stnrkhnlders'
stockholders'
Motors
(Special to The Financial Csron.cle)
for
working
noted
companies to raise equity capital
in the public market for the first
t
nniciana
Corp., Louisiana National
National
Building.
LAKE
Prospectuses from
made it possible
sold
SAN
of
will agree that equity
financing is preferable to debt as
capital.
Two With Federated Sees.
and
Lith^T Chemira"s
1/S
that
appear
nancing
Neb.—Robert
improve-
and repien.
capital for in-
culture; 27% went to vanous
Re¬
dustrial uses including manufabbook, value, turemof sodium phosphates soabs
"S"a
v r.
and yield. On and detergents, textiles, .dyestuffs
..
joined the staff of Federated Se-
ESTABLISHED 1924
sev-
.
has joined the staff of
Huey Co., Denver.
J
333
that
.v
...
Most anyone familiar with fi-
INCORPORATED
24 Federal Street
care-
groups of securities are 50%
more
below
the
1929 levels.
very
(Special to The Financial Chronicle)
LEXINGTON,
a
only sound way to evaluate
prices of securities is to analyze
them on the basis o£ dook
them
basis ot
vaiue,
With L. A. Huey Co.
curities
HOWARD
50
pricewise
EATON & HOWARD
Managed by
while
down
analyzed
the recent rise in stock
EATON
higher
levels,
utilities
The
America Building,
preferred
STOCK FUND
13%
down,
stocks
McGuire
BALANCED FUND
be
highs. When the group
it is found that
broken
L. A.
EATON & HOWARD
over-
eral
with Paul C. Ru-
....
^
the-counter market;
or
Company,
the
or
the
plant
quired in.Bikita Minerals,
owns
Stock
Exchange,
ninr>4
for
cLmicafs
a 2I'25%
of the markets
any
American
rAllIc:! itaii
f/-.*.
additions;
Ltd
^sues
York
woricing capital used in
"w"orkIng";ap"itaY"uS'ed'"in
vaove
and
thium
It does not take into
consideration
on
(JI1
is
&
and
traded
ArtiiiiMAAA«»4
prminmr»n+
vestments rmdp in RiiHta ivrinpraia
—
the
anH
$3,000,000; replenish-
ishment of working
group
of
nlant«!
at
years
ments
p
third
a
above 1929
Exchanges.
JOSE, Calif.
Torbett
Foreign at the
$119,679,631, equivalent to
first
go.,
Staff
to
FRANCISCO,
the New
$2,393.59 per share of first preferred stock
and, after deducting the value in liquida¬
tion
at
(Special to The Financial Chronicle)
share.
$35,701,200 for
International.
investment in U. S. &
Mar. 25 to sharehold¬
4:30 P.M., Mar. 15, 1955.
Federal Street,
of
compares
with
a
combined
net
asset value on Dec. 31, 1953 of
$115,928,697
after
a
deduction of
payable
of record at
shares
Gibson
With Paul C.
S.
This
CENTS A SHARE
94th Consecutive
48,800
than
industrial
cisco Stock
Corp.
&
Foreign's investment in the affiliate and
reflects redemption on June
30, 1954
preferred stock at $105
STOCK FUIMD
G.
Montgomery Street, members
also
EATOIV & HOWARD
W.
ynnn»-»+
recen^
^ faliacy
-
,
wl
nresent
ment of
ment'of
issues,
this
plPannPed impr0VemPeanyt3
for
estimated
typnpral
speaking in terms ot general
market levels, for the following
reasons:
(1) 480 issues represent
regional
Francis W. Muetzel has been add¬
ed to tne staff of Walston &
the stan oi waisiuu ex.
$139,113,278
reported
States
p
Co.,
of
Foreign Securities
United
,
Donald
(Special to The Financial Chronicle)
Foreign Securities
Dec.
on
BALANCED FUND
-i
&
T
111.
Walston Adds
SAN
480
of
^
UJ^vma»AAX0
5tocks
stocks
The
Combined
of
vi,
231 South La Salle Street.
^
"
EATON & HOWARD
lo
broader
of
O p
Exchange.
President ot
Brooklyn Union Gas Co.; 5,000
shares Food
Machinery and Chemical Corp.,
and 5,000 shares Chas. Pfizer &
Co., Inc.
.
Fxecutive
Pearson has been
10,000
and 4.400
inc.,
fnrmpriv
..
CHICAGO,
Co"%';
&
much
use
studv
a
Of W. C. Gibson & Go.
Corp.;
-
a
their
p
less
-~
iS"liSy
base in
howev^
^
only tenas
Donald G. Pearson V.-P,
10 000 shares Wisconsin
Electric Power Co
Co.;
no
shares
ment
Stock Av-
,
„
Co.;
Poor's
reduc-
corporate pur_
Such purposes
include pay-
poses.
the
made
is created
the stock
about
present
erages
portfolio
Light
Viscose
»lovuov
xxincjAuaiAi
been
Vice-President ?„ ah
in charge of sales,
of sales.
international Telephone and Telegraph Corp.; 2,300 shares Union Carbide
and
Carbon
Corp.; 3,197 shares Middle
South Utilities,
Inc., and 5,000 shares National Container
Corp.
were
speak
tn
halanr*f»
proceeds win be added
to
general funds of the
company, to
be uged for
general
deal^g "J
cotton, but an
or
1
priced at
intprpct
tbe ne^. proceeds
bank loans
The
are
impression
we
m"<it»ndarri 1
t
mutual fund distributors. Mr.
^lty'^
ijg
shares
£
o
of
P-J.g-.ipg
pbv
iu,wu
,
has
,
President
Pre^dent
panning Corporation Of America,
6() East 42nd street, New York
Association
10,000 shares Amerl-
06
Benedick
elected
Smelting and Refining Co.; 8,100 shares
noubtuil
wheat
or
Walter Benedick
Walter
you
March
are
of the
market
for
is
is
market
—
due
354%
'
The company will
apply $900-
^jon
by saying they..are up or
erroneous
400 shares Connecticut GenInsurance Co., and 1,000
shares
Chief increases
about
fashion
the
when
when
shares Geco
Sutherland Paper
shares
Af\*\
-
insurance Co.;
eral
Massachusetts
that
-
qqq
of hundreds of issues 1
*?sues th^t daily
have opposite trends It is Possible
trends.
po
b
to ■ get a clear picture in other
oth r
RegSs Paper Co . 14 400 shares
Mission Development Co.; 5,000 shares The
Champion
Paper and Fibre Co.; 25,000
shares
Dividend Announcement
this
m
.
u.ni°n s"iPh"r
The
Y
js^jes. 4Actually,
factua
levels
reason
*£1emi ca*
subordi-
debentures
yjeid
Averages which
30verylarge
talk
J.
a\
rJru,l,r
The debentures
101%
plus
accrued
completely
a
to
shares
shares
not
is
statement
Lehman
convertible
1970
trendi Ofthe stock
usually based on
is
Dow-Jones
it
for the
-
3 /s%
--
made up of only
national corporate
compared
of
- --
•
are
additions to the portfolio were
7,000
Aluminium
Limited; 8,000
shares
v-
_
Corp-
referring to the
This
comprising
American
05/c?
or down'has been employed when
market:
*
9)
tde public $7 000 000
of
A
°f
em real
0„e ed ,
up
Common stocks
unchanged from
rise
,'For years the sweeping generalization,'The market is either
beginning of
the quarter.
grouP
nated
$190,329,-
sh&re
per
share
was
this
tnis
tms
as a means of pro01
viding corporate working capital,
W investors rlannmg
I It if ad Arc PlaitlliltO"
-•/
4
Brothers; Glore, Forgan
William R. Staats & Co. and
Rarfh
»
r.
Ba7th"& Co. yesterday "(March
/T\/ra^K
up
Among the other sales were 6,500 shares
Mid-Continent Petroleum Corp.; 7,000 shares
The West Penn Electric
Co.; 7,500 shares
Pennsylvania Power & Light Co.; 10,000
31, 1953.
in stock values
L®nman Corp.
of 1954
mar-
ket
averages.
Concerning
matter and the importance of
?
1®
A
nasis
basis
stock
of
confidence."
American Potash &
Chemical Debs. Offered
on
QniP
sole
per
NEWS
Net assets of The Lehman
Corp.
Day
Der
per
42c
40c
Walter Benedick Pres
of«
as
folder is revised
every
second flscal Quarter
th^
the
E.
general
of
one
,
market
price level
James
income
to
with
public is
exchanges in
protesting the
judging of the
stock
to
.
of
s
r
Mr. Day siaieu.
r. Dav stated.
uay stated-
last.
rv«
fr0m
amounted
nomoared
SinXTear
10-
that date, as tu/%1
well
included.
months.
Securities
WALL
T
the
d
e a
ti^e larger
the
can
inCOme F UIIU,
Income Fund,
J
CLOSED-END
•
de VEGH
tie VEljrll
also
six
Of
distribu-
4L rt4-
v.
on
value
per
to
^
sharp
on
in v v-om.v-nw
paid
during 1954
re-
investment
q/xujv/v/v.
different bases for
ended Jan.
classification
are
charts the
period
year
Dividends
.
issue
with
the h
reason
believe that the
business outlook,
js a
healthy and vigorous one and
that the attitude of
the
o
From these gains a distribution of
19c per share was paid in No-
mil-
every
a
compared
«-»■£
or
hundred and
of
rency Committee and in
Blue
Ridge Mutual Fund were $24,032,813, equal to $12.61 per share,
of
a
Bank-
ing and Cur-
'
NET
o^/top buy^lor
sell
stop buying for
one reasons.
Years
experience have
proven that
price levels are affected
by the
attitude of the public as
well as
values. There is
the
Senate
as
*
TOTAL
Wellington
$10,000
a
Holdings
share
31, 1953, to $56.53 per
share on Dec. 31, 1954. Long-term
capital gains distributions during
share.
a
$xx
HT A1 Jlvx
Dec.
on
of
puiw
a
de
Llflstatet^om^diHes or'stock^
appeared decided
appeared decide to
before
1953
Manager and National Distributor
"Facts
On to-date highlights of the $400
Feb. 26, 1954 net asset value
$2.63.
Midwest' Stock'
the
g
was
since
ays » wwr aKvartsot
r.M-.ra's are
sas as S gv/s «—«- •*
Chi™,
was
Holds only sound
way to evaluate prices of
1
analysis of their book value, earnings and
yield/,,., *
an
Ju-
ASSET
share
Senate
to
market level.
securities is
was%d®e
—
attributed
aiiriDUiea
statement
Banking and Currency Committee,
James E. Day, President of
Midwest Stock
Exchange, joins
in protest
against use of stock price
averages alone in judging
pv,ilQ^ini,;0
<6«9*
approved an
amendment of the fund's declaration of trust to permit
trustees to
Averages Are Misleading!
per
of Pniladelpnia
.
Shareholders
of
Stock Price
stock.
value
stock.
common
53
$10,000,000,
common
asset
and
J
Futures,
of
with
of $90,796,042; equal to $918.99
share of first preferred
stock
shares outstanding increased from which
fo invest.
He pointed out
4,286,800 to 4,344,000. There has. that under
lease-back arrangebeen a modest reduction in the
ments, a return of from 4 to 4%%
common stock section of the
port- may be expected.
Trustees befolio, with these investments to- lieve the fund
to be the first to
taling 65y2% of portfolio on Feb. adopt this
extension in
invest28, .1955 compared with 69% at ment
policy.
NET
share
per
of
W
per share increased from
$24.30
amount
ago
the comparable 1953
period.
c^irman of
Feb. M
28, 1955. Net
total
compares
per share
record
George
the
$111.35
This
To Invest in Real Estate
The
in
value.
General
With Investors
Planning
(Special to The Financial
Chronicle)
'
y
BOSTON, Mass.—George S. Deoutstanding example
nf a nnre
advance that has. per- Mattia> Hyman Litinsky, Robert
L
giegal 31,0 clifford F> louse
u blegal and l-u"0ra *• Youse
have been added to the staff of
vipid nf r 4<y
®
Investors Planning Corporation of
y
'
/o'
New
England, Inc., 68 Devonshire
"Value does not
necessarily set Street.
is
an
mitte^equft^ f^dng'^et^he
.
f'"anclnf•_th®
54
(1182)
The Commercial and Financial Chronicle
Continued
from
5
page
previous
The past week's production total of cars and
to 186,992 units, an increase above the preced¬
ing week's output of 751 units, states "Ward's." Last week's car
output slightly exceeded that of the previous week, "Ward's"
.
week.
trucks
The State oi Trade and
the
latest
total of
week,
172,088
according to
"Ward's"
"Ward's Automotive Reports."
805
and 15,053 trucks.
cars
the
noted
*'
past week's car output
was
-
in
months.
seven
Casualties
8%
were
numerous
more
since
Jaftpary
*
in
1954,
well
remained
it
below
the
exceeded the
This compares
gained
seasonal variations.
10,000 occurring in
prewar rate of 55
in failures this January from
of $5,000
failures^tiSafensKe
in
22
more,
as
vigorous over
magazine of metal-^
"
,
Not
only will
consumers
be trying
get enough steel for-;
to
their high rate of usage but they will be strengthening
tjheir in¬
Three reasons for this are that increased consumption
to
get, consumers want to have some extra tonnage on hand.
Further, consumers anticipating the possibility of a steel wage
increase and
accompanying price rise will try to hedge against
the latter, this trade journal points out.
Inventory vbuilding in this case shouldn't go so far as it did
during the war periods when no one knew how long it would
an
tho80r<vrtk'J-M2telities' under
businesses
below
ated
%
the
level
of
most
steel
as
it
is
of
Motor
consumers.
Co.
declares
its
sales
all
this
into
the
listless
steel
rail
market.
Some
railroads
are
earlier
the
general
thing that gives promise of a substantial steel demand
despite any decline from the auto industry is the wide base of
demand.
New
every
The
orders are coming in increasing volume from al¬
quarter, concludes "Steel" magazine.
American
Iron
Steel
and
Institute
announced
that
the
operating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will he at
for the week beginning March
capacity
2,198,000
tons of
ingots and steel for
(revised)
and 2,218,000 tons
a
an
7,
average
1955,
castings
week
as
of 91.1% of
equivalent
compared
to
with
ago.
The industry's ingot production rate for the weeks in
on annual capacity of
125,828,310 tons as of Jan.
based
1955 is
1, 1955.
For the
duction
like week
2,095,000 tons.
month ago the rate was
86.8% and pro¬
A year ago the actual weekly production
a
selling
'
sales
for
light and
1955,
of
Slightly Upward the Past Week
electric
energy distributed by the electric
industry for the week ended Saturday, March 5,
estimated at 9,727,000,000 kwh., according to the Edison
power
was
Electric Institute.
This week's output rose
2,000,000 kwh. above that of the pre¬
vious week, when the actual
output stood at 9,725,000,000 kwh.,
1,161,000,000 kwh., or 13.3% above the com¬
parable 1954 week and 1,554,000,000 kwh. over the like week in
and
an
1953.
increase
of
<
^;rtig$
Loadings Drop 3% in Holiday Week
trade
a
Five-Month
dieted
*
"
-*
year
in
wheat
U. S. Car
The
•
1
.
automobile
1955,
Capacity Edges Slightly Higher in Past Week
according
estimated
to
172,088
industry for the latest week, ended Mar. 4,
"Ward's
cars,
Automotive
compared
with
Reports"
171,188
assembled
(revised)
in
*
the
pre-:
fined
to
Export
market
fined
at
a
low> ebb.- Oats
dull
of
and
a
year
were
reduced
10
points last
-
the
1
*
ing to
in
-
prices held fairly steady despite the setbacks in grains
and the heavy tone in hogs.
With small receipts
by curtailed shipping demand, hog values continued to
decline, touching the lowest levels since January, 1950.
Spot cotton prices moved in a narrow range and closed
slightly lower for the week. Minimum support prices for 1955
upland cotton were announced last week by the Department of
Agriculture at 31.70 cents a pound. This, and the announcement
soybeans
35.22
cents
pound,
a
un¬
from
the previous month, had no apparent influence
Reported sales of the staple in the fourteen markets
declined in the holiday week and totalled
137,100 bales, against
167,400 a week earlier and 176,500 two weeks ago. Daily average
marketwise.
of
cotton
during January, according to the Bureau of the
totalled 35,600 bales,* as compared with the December
of 32,100 bales, and the
January 1954 average of 33,900 bales.
Trade Volume
lines.-
ventories
week
previous
and
week
retail
and
sales
were
considerably
the
level
Wednesday
than in the
of
last
year
at this time.
usual
continued
and/opinion
widespread that larger
plies
will
be
necessary
retail
trade
weeks.
.
Department
the
Federal
dex
for
.
1955,
in
store
sales
week
showed
trade
was
attributed
largely to
preparations for Easter and continued
on
Board's
ended
Feb.
increase
an
a
Feb.
26,
was
heavy
In
registered from
the
four
1955,
recorded.
an
weeks
1954,
ended
increase-of 2%
For the period Jan.
1, 1955 to *Feb. 26, 1955,
6%
26,
week, Feb. 19, 1955,
rise of 5%
for
in¬
2%
of
that of the similar period of
while
a
taken from
as
Reserve
the
coming
.
a
gain of
registered above that of
was
1954.
•
Retail
York
by
trade
City
volume
the
favorable
past
in
week
shopping
increased by about 2%
New
aided
weather
above the
like period a year ago.
"
According
store
sales
the
to
Board's
serve
in
Federal
index
Re¬
department
New York
City for
the weekly period ended Feb.
1955, showed
no
same
26,
change from that
In
1955,
true, while for the
was
four weeks ended Feb. 26, 1955, a
decrease of 3% was reported. For
the period Jan. 1, 1955 to
improved
sup¬
meet
to
J
the
on
slightly higher
above
Restocking of in¬
the preceding week, Feb. 19,
Spring shopping increased in the period ended
last
will-/.*
slightly higher prices
of the like period of last year.
Perked Up the Past Week and
Topped Year Ago Level
of
confix
more
month ago and
a
pay
.some-
was
-
-Feb. 26,
earlier-than-
1955 the index advanced 1% from
purchases ot
that of 1954.
automobiles.
The
total
dollar
estimated by Dun &
volume
of
retail
trade
in
the
week
Bradstreet, Inc., to be 2 to 6% above
a
was
year
Comparison
Jan.
4-9
*
in*
•
was
price at
also
were
dent; than
the preceding
ago.
mid-February parity
more
than
made
were
from the like period last year.
offerings. Warehouse stocks of cocoa were
126,133 bags, against 121,375 a week earlier
of
the.
corresponding period of 19544
Buyers
-
Lard
changed
volume
work '
prices tended to weaken the past week with bearish
sentiment reflecting the continued absence of confidence in the
the
wast,
cocoa
Coffee
of
i
unchanged from
was
country-wide basis
and substantial dealer
155,249
tbe-total
commitments
'
grain being
although producer
and rye declined irf
Cocoa was under
pressure
and* prices continued to
lower, influenced by slow manufacturer demand for spot
and
orders
/
buying
week, marking the first drop since September.
higher and totalled
of
placed by wholesale buyers in the
••
some
flour was mostly quiet. The raw sugar
easier, reflecting a lack of demand for re-
at current prices which
the
approxi—.
week.
'
faced with exhaustion of balances.
buying
was
sugar
1954 by
*
Although
wheat and rye markets has made for greater
among bakers and jobbers generally with buying con-*
trade
of
this
those -for
high' level
heavy
hesitancy
exceed
period
A
*
an
industry
previous week, considerably
continued
-
cars
,
The setback In
The
automobile
were?
mately 33%.
:
as
wa&'prae&caily nil except for
Railroads.
Loadings for the week ended Feb. 26, 1955, totaled 635,453
an increase of 40,422 cars, or 6.8% above the corresponding
1954 week, but a decrease of
33,201 cars, or 5% below the corre¬
sponding week in 1953.
welf
supplies
%
Census,
cars,
lifted
goods
-
that retail sales of passen->
will
v
same
*"
.
sympathy with corn as the limited demand failed to stem the tide
of selling.
Sales of grain and soybean futures on the Chicago
Board of Trade rose to a daily average of
60,100,000 bushels, from
42,400,000 the previous week and 57,600,000 a year" ago. Domestic demand for all types of flour continued slow last
revenue
of American
household
.
and. garden
the
for
deferred
marketings
freight for the week ended Feb. 26,1955,
which included Washington's
Birthday holiday, decreased 19,582
cars, or 3% below the preceding week,
according to the Associa¬
tion
"•
'
*
clearances
continued high.One spokesman^,
sold from Governmen&^tpefcs//dtarn weakened
rate
Loadings of
and*
favored
the
sales..GL:bcH;n; new and .used
season.
use
Car
light-, /veal
among
end
-
of
offset
amount
meats
and the same period ot 1954.
Al-j
though bedding sold poorly; case
goods, * kitchenwares,
linoleum
deliveries of wheat fell to new low levels for
Buying support for the bread cereal was listless despite reports of dry conditions in the old dust bowl area of the
Southwest, where additional moisture is" badly needed. > Export
the
and
The
'
red
above the level of both last week
prices warked sharply
increased under successive
which
pressure
330,410 tons
Electric Output Turns
,
most
generally
were
Month
present price structure.
of Jan. 1, 1954.
of
cufs.
year ago.
in grain fdtures expanded
placed at 1,652,000 tons or 69.3%.
The operating rate is not
comparable because capacity was lower than capacity in 1955. The
percentage figures for 1954 are based on annual capacity of 124,as
sales
were
of liquidation.
a
was
sharp
*
.
week.
The
the
weeks.
'
lamb
or
price level broadened last week
and 277.29 at this time
under
All
set up.
91.9%
*
from-
group last
$100,000
.
declined
eggs
following
recent
While
Bradstreet
waves
orders earlier and want deliveries faster than schedules originally
most
in
&
lower
quarter
releasing
Dun
Activity
-.
-
decline
the
week
welt above
expectations.
The second largest user of steel, the construction
industry,
is shaking off the lethargy of winter and stepping forward into
the steel market. Bookings of fabricated structural steel in Janu¬
ary were 22% over those of the preceding month.
Other
industries
showing
new
strength
are
agricultural
equipment and construction machinery. New life is even' coming
liabilities-of
of
***
"
daily £ wholesale commodity price ■'
index touching the,.lowest level in about five months.
The in¬
dex closed at 27&8Srron March
1, as compared with 277.05 a*
,
Ford
with
of
>
LenterU
other
T r
pur-i
new
low since Oct. 19,
1954, when it was $6.59. The
-V;
V-^^figure at $6.63, reflects a drop of 8.0% from the $7.21 oi a year. agd>„« tf Purchases ixf
gasoline rose more -r
Higher in wholesale cost the past week were
flour,beefthan seasonally the oast weak arid '
eggs,
rice and lambs.
Lower were wheat, corn,
oats,
The
producing, declares
buying.
moderately*
rise
Small
and
price
the
wholesale food
with
year oper¬
,
have bean
""The
last
to 39
rose
Low Level in Past Week
this trade weekly.
Some people think that a let-up in automotive steel buying
will co.nje around the end of May, either because of an autowprkers' strike or of a saturated auto market. Automakers are
still
;
of
ago.
year
of fish
V*
.
items the past week.
156
183
and
particu-i
ger cars in the first quarter of
by Republic Steel Corp. and Inland Steel Co. of their weekly
availability lists. The job now is not so much one of selling
steel
failed
Wholesale Commodity Price Index Hit
Evidence of the tightened demand for steel is the discontinu¬
ance
chases
level.
Inventory building probably wouldn't be
if supplies hadn't been cut so low last year. That
industry last
a
$5,000,
against 15 in the preceding week.
be before demand eased;
far that the steel
..
.
price index, compiled by Dun & Bradstreet,
Inc., fell 2 cents last week to stand at $6 63 on March 1, marking
.
so
in
increase from
Spring
was
a
*
necessary now
reduction was carried
an
declined.
sportswear
Iarly popular.
Housewives increased their
re¬
:t
furs
Summer
hams, bellies, sugar, milk, cocoa, currants, steers and hogs.
The index represents the sum total of the
price per pound
of 31 raw foodstuffs and meats in general use arid its chief func¬
tion is to show the general trend of food
prices at the wholesale
larger working inventory and because steeh is harder
a
of
* \
barley^S;^*?^^ ^
ventories.
requires
involved
were
Wholesale Food Price Index Drops
Fifth Successive Week;
the
even more
working.
more
;
'
pro¬
con¬
their
buying of
Women's coats,'
suits, millinery and shoes were in
heavy demand, while purchased
Continuing its downward trend for the fifth successive week,
Rise Above 90% of Capacity
already strong^ will be
or
group showed
-
widespread
fashions,
new
apparel last week.
week
Mortality,
previd^.woisfc-^Bd^exceeded the 29 in this
Twelve
year.
1953.
contmuecl^l^iJwjr-the^l94 recorded
the
^
Steel demand,
the
by
of
increased
sumers
*
but
casualties,
a year ago
mortality climbed 44 and 45%, respectively, compared with ad¬
vances of 1 or 2% in other categories.
January, 1955, lailures.. increased moderately in most regions.
The New England toll was the heaviest in
oyer Jwo years and the.
Middle Atlantic toll reached a nine-month nigh#
"
V.
the next few weeks, says "Steel," the weekly
222 in
to
rose
below the prewar toil of 254 in :1939.
Liabilities
week's
concentrated in wholesale trade and commercial service. Here
Steel Output Scheduled to
Moderately the Past Week
180 in the comparable week of
12%
+
Most of the uptrend
>
was
motions
was
failures
-
west
.
week
1940.
industrial
;•—5; •. Racific
to
Attracted
last week
to
-f2; Southwest -f-1 to
+5; New England and South +2
+6; East -f4 to +8 and Mid¬
-j-5 to -f-9.
1
a year ago.
.Commercial and
—1
Coastf—2 to
ended Marcl) 3 from the holiday low of 178 in -the
preceding*
week, Dun & Bradstreet, Inc., stated. This upturn brought casual"ties about even with a-year ago when 223
occurred, while they
.
January,
20,805
Business Failures Rose
'
Contrasting with the rise in number- of failures, the mortality
rate in relation In the number of operating concerns declined.
According to Dim's'Failure Index, -which reflects the annual rate
of failure, there were 41 casualties for each 10,000 enterprises
with 43 in December; the index is sWjusted fdr
While this casualty rate exceeded the 37 per"
20,-
placed at 8,863 cars and 779
trucks.
In the previous week Dominion plants built
8,218 cars
and 620 trucks, and for the comparable 1954 week 7,981 cars
and 1,673 trucks.
1942.
listed in the Dun & Bradstreet '''Reference Book."
by
assembled.
Canadian output
the highest
than in the
.comparable month of 1954, and heavier than in any other
and
cars
varied
corresponding 1954 levels
the
following
percentages:
Northwest
previous
week and
only slightly short of the highest week in industry records,
173,482 units built two weeks ago, in the week ended Feb. 19.
were
108,804
year
estimates
from the
Last week, the agency reported there were 14,904 trucks made
United States. This compared with 15,053 in the
expected to
fall
Edging upward to 939, failures in January
corresponding week last
were
the
in
"*"•
the
trucks
A
and 14,904 trucks \frere turned out last week
cars
against 171,188
as
Industry
In
.'Thursday, March 10, 1954"
..
ago." Regional
amounted
notes.
.
3-8
week
week
in
period
in
1955
1954.
begins
and
with
with
the
the Jan.
-
Number 5410... The Commercial and Financial Chronicle
Volume 181
The
Indications of Current
week
IRON
Indicated
STEEL
AND
Mar. 13
42 gallons
Crude runs
Gasoline
Ago
CIVIL ENGINEERING
1,652,000
2,095,000
(bbls.)
average
v,
oil output
Residual fiiel oil output
——Feb.
7,
.—.—Feb.
-Feb.
—_—Feb.
a
(bbls.)
(bbls.)
State
7,511,000
7,402,000
7,123,000
25,349.000
24.454,000
24,546.000
2,543,000
2,724,000
2,839,000
12,904,000
12,640,000
11,920,000
10,771,000
8,909,000
8,925,000
8,369,000
Finished
and
unfinished
Kerosene
(bbls.)
fuel
Residual
131,310,000
25
176,877,000
To
177,326,000
169,612,000
18,791,000
20,170,000
24,532,000
68,731,000
71,019,000
89,032,000
68,552,000
j^eb. 25
45,652,000
46,710,000
48,537,000
45,941,000
26
635,453
655,035
641,979
595,031
carsJ^Feb. 26
639,573
632,567
609,286
Jan.
$373,194,000
$312,218,000
$279,861,000
$208,148,000
.J&lar.
225,019,000
207,823,000
,182,713,000
100,956,000
148,175,000
104,395,000
97,148,000
107,192,000
at-
16
Revenue
AMERICAN RAILROADS:
OF
(number of cars)
freight received from connections
Revenue
CONSTRUCTION
ENGINEERING
CIVIL
.jS»Cb.
freight loaded
Consumed
In
1
(no. of
LINTERS
month
of
U.
construction-
S.
Private
construction
—
In
v
124,565,000
78,292,000
S. BUREAU
(U.
Bituminous coal
.
26,103,000
30.443,000
•8,935,000
8,835,000
6,886,000
568,000
598,000
608,000
530,000
=
92
90
87
90
5
9,727,000
9,725,000
10,047,000
8,586,000
222
178
264
Electric
(in
output
(COMMERCIAL
FAILURES
1
1
1
4.797c
4.797c
4.797c
4.634c
$56.59
$56.59
$56.59
$56.59
$36.75
$37.00
$35.50
$23.83
Mar.
kwh.)
000
INDUSTRIAL)
AND
—
of
IRON AGE
steel
Pig iron
(per gross ton)
Scrap steel
METAL
(E.
:
ton)
(per gross
PRICES
Mar.
Mar.
Mar-
lb.)
(per
M. J.
&
Export
Straits
Lead
tin
QUOTATIONS):
St.
at
at
Louis)
(East
Zinc
.
York)
(New
(St.
at
Louis)
at
Mar.
s_Mar.
—Mar.
Mar„_Mar.
Mar.
IIII
ZZII
Industrials
Group
Group
corporate
Average
Aaa
90.250c
86.750c
15.000c
15.000c
12.500c
14,800c
14.800c
14.800c
12.300c
11.500c
11.500c
11.500c
9.250c
8
97.18
96.38
97.55
99.83
8
109.24
109.42
109.97
110.15
8
8
Aa
-
-
Industrials
NATIONAL
(tons)
DEALERS
Odd-lot
,.
2.76
2.68
2.52
3.20
3.17
3.16
3.03
2.97
2.86
3.12
3.09
3.04
3.18
"?
3.55
3.17
3.13
3.15
3.15
3.11
Round-lot purchases by
397.3
412.3
426.7
229,112
249,452
244,391
212,753
$2.60000
$2.60000
85.250c
85.250c
259,007
262,282
257,931
228,258
95
95
94
88
§§New
York,
Gold
99%
387,743
419,484
107.08
354,462
107.18
106.75
320,960
107.78
of
Number
NEW
motor
extended
Credit
hand
34,074
346,640
310,857
balances-
1,069,011
1,018,933
741,097
171,154,679
169,148,544
123,189,862
105,476,316
106,517,242
101,246,212
124,835
171,128
138,448
1,779,286
1,748,259
1,124,536
$88,042,721
$84,358,655
$71,651,552
$39,583,535
Total
1,459,995
1,488,175
1,281,172
848,192
Member
borrowings on U. S. Govt. issues-
Member
borrowings on
on
of customers'
Market
838,435
$70,281,214
$70,812,044
$60,721,770
376,080
353,220
278,950
listed
of
value
free
credit
shares
bonds
Market value of listed
$35,777,843
402,070
$1,689,558
41,459
356,480
banks in U. S
Cash
8,923
$2,429,218
41,649
.—
customers.,
in
871,712
1,272,249
406
$2,558,276
debit balances
net
to
and
1,393,114
9,051
96,167
422
1
1,644,715
1,479,124
454,562
*95,811
190
coaches..
1,680,153
8,967
551,134
♦669,936
89,676
carrying margin accounts-
customers'
Total
1,451,028
♦766,169
636,242
cars
omitted):
(000's
Member firms
9,757
$2.25
January:
EXCHANGE—As of Jan.
STOCK
YORK
60.000c
726.108
of
vehicles
passenger
of
27.000c
$2.25
MANU¬
ASSN.—Month
Number of motor trucks
Number
21.500c
64.500c
FROM
S.—AUTOMOBILE
U.
IN
SALES
22.880c
27.000c
64.500c
$2.25
FACTORY
number of
84.034c
$35,000
$188,000
27.000c
(per pound)
pound)
FACTURERS'
Total
86.290c
$35,000
$322,000
23.200c
plus ingot (per pound)
VEHICLE
MOTOR
85.034c
$35,000
;
(per
87.290c
$322,000
♦♦Nickel
Bismuth
73.750
$2.81292
89.835c
min
(per ounce, U. S. price)
Aluminum, 99%
74.238
$2.78510
90.835c
:
Quicksilver (per flask of -76 pounds)
Magnesium ingot
85.250c
74.088
$2.78360
(pence, per ounce)
(Check)—uStraits
York
New
PLANTS
402^070
594,220
353" 220
376,080
552,910
485,050
2~78~950
297,640
OF MINES)—
of November:
Month
23,841,000
19,494,000
9,655,000
13,083,000
99
104
97
$784,085
used
Capacity
22,529,000
27,133,000
10,727,000
Shipments from mills (barrels)—*
Stocks (at end of month—barrels)—
25,887,000
22,781,000
(barrels)
Production
19
other collateral
(BUREAU
CEMENT
PORTLAND
.Feb. 19
dealers—
$1.75000
$2.60000
-
Exchange
Sterling
Tin,
3.05
,
111111111111111111^^'.
r
sales
Other
£70.681
pound)
(per
Silver, London
390.5
^
£72.225
£84.432
$1.70000
Silver, New York (per ounce)
3.15
iy
£85.836
$1.72500
112.19
ACCOUNT OF ODDON N. 7. STOCK
dealers—
shares—Total sales
9.375c
£89.456
£87.531
$1.70000
110.34
3.17
Round-lot sales by
11.500c
$1.70000
111.07
3.29
value
11.500c
28.500C
$1.70000
110.70
3.27
i,™
$90,000
$1.70000
110.34
3.46
sales
Customers' other sales
29.000c
$79,500
$1.70000
109.97
3.16
_
29.000c
Silver and Sterling Exchange—
3.48
Feb. 19
Feb. 19
31.970c
28.500c
$1.70000
Cobalt, 97%
3.30
4
31.970c
pound)
(per
107.80
£81.956
$78,545
ttZinc, London, prompt
ttZinc, London, three months (per long ton)
tCadmium, refined (per pound)-
103.30
£103.702
29.000c
ounce)
12.618c
£82.756
28.500c
Louis
(per long ton)
108.16
3.18
short
(per
12.818c
14.800c
31.970c
1
(per pound)—East St.
104.83
3.32
Feb. 26
Dollar value
Zinc
107.62
3.04
Feb. 19
—Feb. 19
Short sales
refined
15.000c
£104.065
£103.475
'
Boxed
bulk, Laredo
Antinmony (per pound) Laredo
104.48
3.49
Odd-lot purchases by dealers, (customers' sales)—
Number of orders—Customers' total sales
Number of
15.000c
14.800c
£103.669
pound)—.
pound)
(per
§Cadmium
3.19
Mar,
York
New
Antimony
tCadmium
8
PRICE INDEX-
SPECIALISTS
AND
((Antimony,
109.79
8
at end of period
Louis (per
Common, St.
ftPrompt, London (per long ton)
ttThree months, London (per long ton)
112.37
3.13
Feb. 26
Number of shares
Dollar
29.669c
111.44
—
Customers'
QUOTATIONS)—
29.000c
110.15
3.21
SECURITIES EXCHANGE COMMISSION:
sales by dealers (customers' purchases) t—
EXCHANGE
J.
177,760
245,629
29.783c
113.70
2.71
—£,e~-
TRANSACTIONS FOR ODD-LOT
LOT
M.
&
196,767
223,533
32.574c
109.79
£
Feb. 26
OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100
STOCK
(E.
110.34
ASSOCIATION:
of
Unfilled orders
239.285
218,670
:
32.700c
110.88
8
(tons)
(tons)
activity
Production
CONSTRUC¬
(tonnage)—estimated
109.97
d
*
Mar- 8
INDEX
PAPERBOARD
Percentage
STEEL
OF
(AMERI¬
36.236c
107.27
Mar.
Mar-
Group
Orders received
RE¬
Electrolytic domestic refinery
112.56
Mar.
Group—
COMMODITY
MOODY'S
86
'
Electrolytic export refinery—'
104.31
Group
Utilities
109
91
■
pound)-*-
(per
110.70
Mar.
Public
STEEL
(tonnage)—estimated
PRICES
115.82
Mar.
in_n_IIIinn
Baa
118
88
K
Average for month of February;
Copper
109.60
Mar. 8
-
Railroad
112
(FEDERAL
STRUCTURAL
closed
112.37
8
Mar. 8
Mar. 8
S. Government Bonds
U.
91.250c
15.000c
YIELD DAILY AVERAGES:
BOND
MOODY'S
29.125c
91.000c
-Mar. 8
Mar. 8
Mar, 8
Group
Utilities
Public
29.700c
34.800c
MarMar.
—Mar.
A
l'
32.700c
Mar.
Aa
~
32.700c
36.250c
Mar-
corporate
Railroad
431.5
Average=100)—
adjustment
INSTITUTE
Platinum,
U. S. Government Bonds
Baa
32.700c
36.025c
2
2
2
2
2
2
DAILY AVERAGES:
MOODY'S BOND PRICES
Average
SALES
Common, New York (per pound)
at
(New York)
Lead
8,631,000
409.5
Lead—
refinery at
refinery
19,652,000
1(^,239,000
TION)—Month of January:
METAL
Electrolytic copper—
Domestic
22,920,000
19,136,000
9,184,000
;
22,564,000
L9,282.000
459.2
STORE
FABRICATED
Shipments
PRICES:
COMPOSITE
Finished
!2,495,000
J—
29
February:
seasonal
Contracts
&
DUN
BRADSTREET, INC
1,430,090
19,634,000
COMMERCE):
Adjusted for seasonal variations
CAN
ELECTRIC INSTITUTE:
EDISON
113,422
1,719,519
19,136,000
223
4'
101)
OF
112,672
125,192
1,759,600
'
Mar, 3
AVERAGE
(DEPT.
678,472
1,744,683
12,089,993
19,282,000
—■
SYSTEM—1947-49
Month
Without
SYSTEM—1947-49
of January.,
of Jan. 29
as
801,748
1,671,745
13,850,756
17,955,000
INDEX—FEDERAL RESERYi
SALES
STORE
711,286
1,801,753
L—
January
16,119,150
13,471,230
-i__.
spindle hours (000's omitted) Jan. 29
Active spindle
hours per spindle in
place
SERVE
(tons)
Pennsylvania anthracite
DEPARTMENT
13,405,199
-
8,760,000
—
68,643
COM¬
Active
OF MINES):
(tons)
lignite
and
month
SPINNING
DEPARTMENT
OUTPUT
238,444
163,233
BALES:
Spinning spindles active on Jan.
89,237,000
66,705,000
23,610,000
Federal
COAL
OF
Spinning spindles in place on Jan. 29
and municipal-
325,801
104,047
—
DEPT.
January^
spindles active
COTTON
Public construction
State
—
Stocks Jan. 29
NEWS-RECORD:
Total
459,514
307,087
307,699
consuming establishments as of Jan. 29
public storage as of Jan. 29__
Cotton
ENGINEERING^
—
489,034
(DEPT. OF COMMERCE)—
Linters—Consumed
ASSOCIATION
$766,601
806,276
411,746
~~
(running bales)—.
AND
589,002
-UvTar.
(bbls.)
,_I~
MERCE—RUNNING
19,115,000
Feb. 25
at.
municipal
$1,295,310
673,128
CIIIIIII
I IIII"
I—IIIIII
8,928,000
Feb. 25
(bbls.)
oil
fuel
gasoline
at
oil
and
COTTON GINNING
COTTON
transit, in pipe lines—
(bbls.) at
Feb.
of
23,924,000
2,550,000
Ago
EN¬
—
Month
—
Federal
117,673,000
25
25
25
25
————
6,303,050
6,677,450
.Stocks at refineries, bulk terminals, in
Distillate
NEWS-RECORD
Year
Month
$1,084,874
CONSTRUCTION
Public construction
.'6,767,300
of that dates
Previous
February (000's omitted):
"
6,789,450-
are as
Month
69.3
86.8
Private construction
.
(bbls.).
Kerosene output (bbls.)
of quotations,
cases
Total U. S. construction
(bbls. of.: .. x
——Feb. 25
.——5*.-*--—Feb. 25
I
each)
to stills—daily
fuel
*2,218,000
output—dally average
condensate
output
Distillate
§2,198,000
Mar. 13
in
or,
either for the
are
Latest
INSTITUTE:
PETROLEUM
oil. and
Crude
Ago
that date,
GINEERING
Equivalent to—
Steel ingots and castings (net tons)
AMERICAN
,
on
production and other figures for the
cover
Dates shown in first column
Year
*91.9
§91.1
month available.
Month
Wees
Week
INSTITUTE:
(percent of capacity)—
steel operations
or
nlonth ended
or
Previous
Latest
AMERICAN
following statistical tabulations
latest week
Business Activity
55
<1183)
$756,856
$568,926
Number of shares
TOTAL
ROUND-LOT STOCK
EXCHANGE AND
SALES 0NTHE N. Y.
Total Round-lot
sales—
645,250
TRANSACTIONS
FOR
ACCOUNT
640,780
439,640
16,459,410
17,858,980
9,491,410
18,114,160
r "u*
Total sales
728,590
17,468,910
\Z
sales
BMIND-LOT
S.
U.
BOARD—Month
Short sales
Other
OF
AREAS
17,188,000
18,499,760
9,931,050
HOME
BANK
LOAN
omitted):
(000's
Dec.
Savings and loans associations
Insurance companies
Bank and trust companies
191,404
147,328
246,276
128,307
461,560
420,439
282,855
$2,266,975
$2,147,578
$1,622,326
$94,118,053
$90,8-75,200
$78,526,182
20,116,203
114,234,256
23,176,942
114,052,142
21,088,581
99,614,763
4,002,142
3,809,051
4,089,491
110,232,114
110,243,091
95,525,272
78,284,152
78,239,494
61,863,458
2,766,420
75,517,732
lending institutions
290,925
252,358
Miscellaneous
126,079
399,476
157,762
savings banks
Mutual
177,204
419,806
:
Individuals
OF MEM¬
ODD-LOT DEALERS AND SPECIALISTS:
of specialists in stocks in which registered
-Feb.
—
of
NONFARM
IN
FINANCING
ESTATE
REAL
STOCK
ROUND-LOT STOCK TRANSACTIONS
MEMBERS (SHARES):
ACCOUNT OF
FOB
2,837,345
75,402,149
58,960,103
44,196,199
44,241,010
43,002,520
225,234
BERS, EXCEPT
Transactions
Total purchases
924,720
180,620
355,610
396,330
354,000
1,645,230
1,615,250
2,029,440
757,930
2,000,840
2,011,580
2,383,440
938,550
transactions initiated on
purchases
the floor—
Feb. 12
294,470
634,980
388,250
282,500
Feb.12
15,000
46,900
38,300
23,600
Feb. 12
sales
308,650
348,470
634,250
263,410
Feb. 12
Total sales
the floor—
323,650
692,995
Income
643,323
619,250
112,040
139,395
74,020
56,420
748,525
1,054,116
367,310
1,151,272
887,920
1,128,136
423,730
2,800,603
2,917,280
3,420,825
1,689,588
482,650
582,625
466,320
260,640
2,993,112
Short sales
ir?'
?',hf «ales
(Si:"
Total sales
PRICES,
(1947-49
NEW SERIES — U. S.
190):
2,712,245
3,717,806
1,378,650
3,475,762
3,294,870
4,184,126
1,639,290
110.1
110.3
110.4
110.7
DEPT. OF
Commodity Group—
Mar.
commodities.
products
foods—
other than farm
1955
93.7
93.8
99.0
102.7
103.2
103.2
105.2
93.2
and foods
:
114.3
Mar.
1
83.7
85.4
85.0
1
115.3
115.4
115.4
((Includes 738,000 barrels of foreign crude runs.
§Based on new annual capacity
as'against Jan. 1, 1954 basis of 124,330,410 tons.
not reported since introduction of Monthly Investment Plan.
figure
1
92.8
'1
Mar.
.
All^ommodfties
1
Mar.
Processed
tNumber of orders
of 125,828,310 tons as
fixed
charges
deductions
Net income
Depreciation (way & structure &
income
On common
On
28,062,270
24,424,279
60,102,939
stock
preferred
U.
28,235,495
taxes
29,818,707
3,511,651
61,296,222
3.44
2.84
MARKET
AND
•————
.j
9,088,271
stock
Ratio of income to fixed
OF
equipment)
2,903,355
appropriations:
Dividend
RECT
Mar.
Farm
T»n
Other
TREASURY
1
deductions from income—
available for fixed charges
after
Federal
account of members-
-——
Total Income
482,368
1,039,232
Feb. 12
round-lot transactions for
Total purchases
f
S, CLASS I
operating Income
Other income.
277,010
Total sales
Total
All
Net railway
672,550
395,370
Feb. 12
Feb.12
__
sales
—
OF U.
(Interstate Commerce Commission)—
RYS.
Miscellaneous
Feb. 12
Short sales
LABOR
INCOME ITEMS
SELECTF.D
Income
transactions initiated off
Total purchases
Other
WHOLESALE
Total
Month of November:
Short sales
Other
2,092,850
-Feb. 12
Total
Other
1,909,780
Feb. 12
sales
Total sales
Other
1,862,810
-Feb. 12
Short sales
Other
12
3.45
charges
.
7,456,710
TRANSACTIONS IN DI¬
SECURITIES
GUARANTEED
S. A.—Month of January:
Net sales
———
————4
$22,993,400
$40,965,100
$6,957,500
quotation. tBased on the average of the
producers' and platers' quotations.
SAverage of quotation on special shares to plater.
((Domestic five tons or more but less than carload lot, boxed.
§§Price for tin contained.
♦♦F.o.b. Port Colbourne, U. S. duty included.
ttAverage of daily mean of bid and ask
quotation at morning session of London Metal Exchange.
tfDelivered where freight
Net
purchases
♦Revised figure.
from East St. Louis
tBased on the producers'
exceeds 0.5c.
56
(1134)
The Commercial and Financial Chronicle
Securities
it
Aberdeen Fund,
New
York
March 3 filed (amendment)
capital stock.
Now
500,000 additional
Price—At market.
shar^;
Pro'^^_*7vr Jnyest_
menj;. Sponsor andDis:„.-«rTr"'r—Investment
Z^Jjr-7
Management
Cr6aaw5y, New York, N. Y.
Afiied Uranium
stock
(par
Price — $1 per share. Proceeds—
mining expenses. Office—701 Newhouse Bldg., Salt
Lake City, Utah. Underwriter—H: J. Cooney & Co., New
cent).
one
For
York.
-
'
Corp., Briarcliff, N. Y.
Dec. 6 (letter of notification) 7,500 shares of d% par¬
ticipating preferred stock. Price — At par ($10 per
share). Proceeds—For working capital. Business—Dis¬
tributor of prefabricated concrete wall panels and but¬
tresses made of steel reinforced dense
concrete, etc. Un¬
derwriter—None.
Insurance
to
expire
shares,
share for each six shares held March 8; rights
March 23. Unsubscribed stock, up to 15,000
will
be
offered
share.
Proceeds—To
owned
subsidiaries,
Co.
ance
tional
and
to
employees. Price — $30 per
provide company and its whollyAutomobile Fire Insur¬
American
Associated
capital funds.
Indemnity
Corp., with
addi¬
Underwriter—Kidder, Peabody &
Co., New York.
American International
Minerals
Anticline Uranium,
Inc., San Francisco, Calif.
capital stock. Price—At par (10 cents per share). Pro¬
exploration and development expenses. Of¬
fice—995 Market St., San Francisco, Calif. Underwritei
—Coombs & Co., of Los Angeles, Inc., Los
Angeles, Calif.
ceeds—For
if Applied Research Laboratories
16
(letter of notification) 833 capital shares (par
$1) and 82 class B shares (par $1), to be offered pur¬
suant to options. Price—$7.96 per share. Proceeds—For
working capital. Office — 3717 Park Place, Glendale,
Calif. Underwriter—None.
Uranium
Mines
Ltd.
28
(Regulation "D") 1,500,000 shares of common
Price—20 cents per share. Proceeds
Office — 411 Childs
Winnipeg, Manitoba, Canada. Underwriter—De
—For general corporate purposes.
Securities
Ga.
and/or
one
new
(3/22)
Price—$23.50
lanta, Ga.
•
investments.
Underwriter—Equitable
Corp., Nashville, Tenn.
Price—$3.75
of
ture
(par 50
Proceeds—For manufac¬
share.
1
•
;
Standard
:
Life
■
Insurance
record March 14 at the
rate
of
Co.
-
present
Dec.
stock
Underwriter—Peter
one
share for each
new
shares held
(with an oversubscription privilege).
Price—To be supplied by amendment..
Proceeds—To
repay bank loans and for construction program. Under¬
writer—None.
if Arkansas Power & Light Co. (3/30)
March 3 filed $18,000,000 of first
mortgage bonds due
Suite 1001, 400
tive
a like amount of 4 % % bonds
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and .Stone & Webster Securities
Corp. (jointly); Blyth & Co., Inc. and Central Republic
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
JBeane; Equitable Securities Corp. and Union Securities
(jointly); White, Weld & Co.; The First Boston Corp.
*5ids—Expected to be received up to 11 a.m. (EST) on
March 30.
if Arkansas Power & Light Co. (3/30)
March 3 filed 93,500 shares of cumulative
preferred stock
(par $100) to be offered in exchange for outstanding
47,609 shares of $7 preferred stock and 45,891 shares of
$0 preferred stock on a share-for-share basis
during a
period from about April 1 to April 19. Price—To be
named later (expected to be $105
per share). ProceedsTogether with other funds, to redeem 47,609 shares of $7
preferred stock and 45,891 shares of $6 preferred stock.
Colorado
Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of commoz
St., Denver, Colo.
if Concord Supplier & Equipment Corp.
Feb.
Phillips Building, same city.
porate
Underwriter—To be determined by
competitive bidding.
Probable bidders: Blyth &
Co., Inc. and Smith, Barney
& Co.
(jointly); Lehman Brothers; White, Weld & Co.;
set;
for
Private IV'tres
Pittsburgh
San Francisco
to
all
offices
Chicago
Cleveland
James E
Sudbury Basin Mines, Ltd.,
Toronto, Canada
Jan. 31 filed 3,000,000 shares of common stock (no par)
Price—To be supplied by amendment.
Proceeds—Foj
exploration and development of properties. Underwrite*
—Stock
Fleet, Inc.
stock.
Price—At par ($1 per share).
working capital and general
com¬
Proceeds—For
Buslness—Manufacture, development and marketing of pharcorporate purposes.
to
be
sold
through underwriters
on
or
Toronto
Stock
selected dealers
Exchange
in
or
United
States.
Contact Uranium,
Mines, Inc., N. Y.
notification) 500,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share;
Proceeds—For mining expenses. Office—100 West 42ncl
St., New York. Underwriter—Justin Steppler, Inc., New
Dec.
V
7
(letter of
York.
if Calvital Co., Inc., Mount Vernon, N. Y.
mon
Office—Toronto, Canada. Underwriter—None
Consolidated
15 filed
200,000 shares of
sale of this
purposes.
Uranium Corp., Elko, Nev.
(letter of notification) 1,000,000 shares of com¬
mon stock. Price—25 cents per share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
(letter of notification)
set.
Price—$2.20 per share. Proceeds
stock, plus $440,000 to be available
from sale of 200,000 shares to Alator Corp. Ltd. and
Yam Securities Ltd, and $175,000 treasury funds, to be
used to pay for geological surveys and metallurgical re¬
search, for drilling expenses and other general corporate
Blue Jay
1
date
eaeh five shares held,
—From
Proceeds—For mining activities.
Offices — 1003 Con¬
tinental Bank Bldg., Salt Lake City, Utah, and 618 Rood
March
new
Consolidated Fenimore Iron Mines Ltd.
100 shares of stock.
Boston
No
Jan. 24 filed 204,586 shares of common stock (par $7).
to be offered for subscription by common stockholders
of record Feb. 7, 1955 at the rate of one new share foi
(amendment) $500,000 of 6% sinking fund
debentures due 1967 and 50,000 shares of common stock
(par $1) to be offered in units of a $1,000 debenture and
Philadelphia
May 11, but has been postponed because of marke
conditions.
Oct. 15
New York
—
able bidders; Halsey,* Stuart & Co. Inc.; Morgan, Stanley
& Co.; The First Boston Corp. Offering—Originally
share
Offering—May be effected in March.
sinking fund notes and 100 ten-year war¬
purchase 20 shares of common stock to be sold
writer—To be determined by competitive bidding. Prob¬
Canyon Uranium, Inc.
Price—Expected at $1,100 per unit
Proceeds—For expansion and working capital. Office—
San Diego, Calif. Underwriter—Barrett Herrick & Co.,
Corp., Charlotte, N. C.
$100,000 of 20-year 6%
(letter of notification)
Consol. Edison Co. of New York, Inc.
April 7, 1954, filed $50,000,000 first and refunding mort¬
gage-bonds, series K, due May 1," 1084. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage, bonds and $25,000,000 West¬
chester"lighting Co. general mortgage bonds. Under¬
Nov. 29 (letter of notification) 6,000,000 shares of com¬
Inc., New York.
1
a $1,000 note and one warrant.
Price—$1,000
(each warrant is exercisable at $10 per share.)
To repay bank loan.
Office — 221% Wesl
Trade St, Charlotte, N. C. Underwriter—J. C. Wheal
& Co, Richmond, Va.
Bishop Oil Co., San Francisco, Calif. (3/16)
r
filed 153,236 shares of common stock (par $2)<
to be offered for subscription by stockholders of record
March 14, 1955, on the basis of two new shares for each
five shares held; rights to expire on March 30. Price—
To be filed by amendment. Proceeds — To retire bank
loan and to advance funds to Canadian Bishop Oil, Ltd.,
wholly-owned subsidiary. Underwriter—Hooker & Fay,
San Francisco, Calif.
California Tuna
25
Proceeds
Feb. 21
Feb.
(par
Proceeds—For general cor¬
per unit
Bingham-Herbrand Corp., Fremont, Ohio
2 (letter of notification) 3,000 shares of common
stock (par $1). Price—At the market (estimated at $10 \
per share).
Proceeds—To selling stockholder. Under-?
writer—Wm» J. Mericka & Co., Inc., Cleveland, Ohio,
i
—
(3/14)
stock
in units of
Feb.
Underwriter
share.
common
Underwriter—Franklin, Meyer & Bar-
purposes.
rants to
—
Ave., Grand Junction, Colo.
Reed Co., Reno, Nev.
per
of
subordinate
(par one cent). Price—10 cents per share
Proceeds—For exploration and development costs. Of¬
fice
705 First National Bank Bldg., Denver, Colo
Underwriter—I. J. Schenin Co., New York.
per
Price—$1
shares
Consolidated Credit
Oct.
stock
Price—Five cents
299,700
nett, New York.
Bikini Uranium Corp., Denver, Colo.
Oct. 15 (letter of notification) 3,000,000 shares of com¬
cent).
filed
„
Ave., Provo, Utah.
one
25
cents).
Underwriter—Weber Investment Co., 242 N. University
stock (par
Uranium Co.
^-For mining activities. Office — 824 Equitable Bldg
Denver 2, Colo. Underwriter—John L. Donahue, 430 16
Price—At par (three cents per share). Proceed*
—For mining expenses. Office—510 Newhouse
Buildlni
Salt Lake City, Utah.
Underwriter — Call-Smoot Co.
mon
Plateau
Dec. 1 (letter of notification) 1,900,000 shares of common
stock (par one cent). Price—15 cents per share. Procei
G. Johnson of Mesa, Ariz., is President.
Blue
Madison Ave, New York 17, N. Y. Under¬
writer—None.
1985. Proceeds—To redeem
<Jue 1983.
v
Employees Mutual Fund, Inc.
March 7 (letter of notification) 850 shares of commo
stock (par $1). Price—$10 per share.
Proceeds—To ac¬
quire common stock of Colonial Airlines, Inc. Office—^
salesmen,
district managers and state managers; and 455,208 double
option coupons with and attached to policies of whole
life insurance, to be offered to the general
public. Pro¬
ceeds—To build up capital and surplus of
company to
permit to qualify as a full legal reserve company and
expand into other states. Underwriter—None. Richard
mon
Morgan & Co, New York.
if Colonial
and future life insurance
July 15 (letter of notification) 500,000 shares of commor
stock (par 10 cents). Price—25 cents per share. Proceed*
—For mining operations. Address—Box 77, Provo, Utah
787, Livingston, Calif.
Chesapeake & Colorado Uranium Corp. (3/14)1
7 filed 750,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For exploration
and development program. Office — Washington, D. G.
Mesa, Ariz.
(par $1) to be offered to present and future holders of
life insurance policies with stock purchase
rights;
75,000 shares of class B common stock (par $1) to be
to
Address—P. O. Box
Underwriter—None.
its
offered
v
mosaico tile.
Under- *
common
Underwriter-
*
if Cepama Mosaico Corp., Livingston, Calif, u
Feb. 16 (letter of notification) 3,000 shares of common
stock. Price—At par ($5 per share). Proceeds—For ex¬
penses incident to
manufacturing1 and distribution of
(3/22)
selling stockholders. Office—Los Angeles, Calif.
writer—Lehman Brothers, New York.
Statement effec¬
Development Corp.
ment.
Feb. 28 filed 480,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
Best American Life Insurance Co.,
11 filed 800,000 shares of class A
is
March 3 filed
'
•
offer
* Century Shares Trust, Boston, Mass.
(amendment) 100,000 additional shares of
capital stock. Price—At market. Proceeds—For invest¬
.
Sending and Receiving Units, working
general corporate purposes. Offioe—Balti¬
Underwriter—Mitchell Securities, Inc., same
Md.
Underwriter—None.
working capital and plant expansion/
Fulton, Reid & Co, Cleveland, Ohio. /
Teleac
capital and
more,
per
The
Catalin Corp. of America (3/15)
Feb. 23 filed 50,000 shares of $1.20 convertible preferre
stock.
Price—At par ($20 per share).
Proceeds—For
Automatic Remote Systems, Inc.
3 filed 540,000 shares of common stock
cents).
shares.
Securities Corp,. Salt Lake City, Utah.
ern
(by
March
Calvan
—For exploration and development expenses.
Office—
317 Main St, Grand Junction, Colo. Underwriter—West¬
additional
Securities
17
Oct. 26 (letter of notification) 16,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
amendment) approximately 1,000,000 additional shares of capital stock (par $1). Proceeds
—For
each
'
Carnotite
share.
per
■
filed
shares for
tive Jan. 21.
Proceeds—To repay bank loans, for property, additions
and working capital.
Underwriter—Courts & Co., At¬
4
Office -— 117 No. Second Ave,
Underwriter—None.
filed
unless extended.
(par $5)
Feb. 25, 1955,
share for each share of common
stock held.
preferred
20
ferred
Big Indian Uranium Corp., Provo, Utah
Corp., New York.
ic Arkansas-Missouri Power Co.
March 3 filed 36,868 shares of common stock (par
$5) to
be offered for subscription by common stockholders of
12%
Atlanta,
Co.,
200,000 shares of common stock
the basis of
ISSUE
contingent to acceptance by not less than 51% of the
outstanding Calvan stock and will expire on March 12;
stock.
ntock (no par value).
Gaetano
of larger inventories and
— Jamaica,
L. I., N. Y.
Feb.
Oct 28 (letter of notification) 2,970,000 shares of class A
Bldg.,
on
Beneficial
six weeks.
Oct.
Dec.
to be offered first to stockholders of record
Corp.
(par 10d).
Price—$1 per share. Proceeds—For exploration and de¬
velopment of mining properties of subsidiary and for
working capital, etc. Office—Dover, Del. Underwriter—
Vickers Bros., New York. Offering—Expected in about
Arctic
Steel
filed
city.
Fdb.. 25 filed 460,000 shares of common stock
Feb.
25
REVISED
Petrofina, Ltd.
1,751,428 shares of non-cumulative par¬
ticipating preferred stock (par $10—Canadian) being
offered in exchange for shares of capital stock of Calvan
Consolidated Oil & Gas Co, Ltd. at the rate of six pre¬
(3/14-18)
Underwriter—S. D. Fuller & Co., New York.
March
Co.
16 filed 250,000 shares of capital stock (par $2)
being offered for subscription by stockholders at the rate
one new
purposes, including carrying
for working capital.
Office
Atlantic
ITEMS
Canadian
Inc.
400,000 shares of capital stock (par $1).
share. Proceeds — For general corporate
per
PREVIOUS
specialties.
Mount Vernon, N. Y.
if Atomic Development Mutual Fund, Inc.
American Automobile
Feb.
of
filed
Price—$5
Feb.
Amcrete
•
18
maceutical
March 30.
on
Associated Food Stores,
Feb.
Mines, Inc., Salt Lake City, Utah
Feb. 17 (letter of notification) 299,700 shares of common
Registration
ADDITIONS
SINCE
•
Equit^n Securities Corp. and Union Securities Corp.
(jointly). Bids—Expected to be received up to 11 a.m.
•
Thursday, March 10, 1954
* INDICATES
in
(EST)
...
Continental Electric Equipment Co.
Jan.
stock
28
(letter of notification)
8,645 shares of
commor
(no par) to be offered for subscription by stock¬
holders of record March 1, 1955 on the basis of one new
Volume 181
Number 5410...The Commercial and Financial Chronicle
share for each five shares held; rights to expire on April
15. Price
$18.75 per share. Proceeds — For working
Diamond Uranium
capital. ^ Office
1
v.*:
^
-
stock
(letter of notification) 3,500,000 shares of com¬
(par one cent). Price—Five cents per share.
r Proceeds—For mining expenses.
Office—M.I.e. Bldg.,
Green.; Hills Place, Cincinnati, O. j
Underwriter-—None.,
Corp., Moab, Utah
Jan. 20
—
per
of
Jan.
7
(RepufoHc of)
filed
Works 4%
G.
Carter
7 filed
March
Investment
Co.,
Corp.,
Pasadena,
Calif.
shares of capital
210,000
Corp., New York
29, 1954 filed 250,000 shares of 7% cumulative sink-';
mg fund preferred stock. Price—At par ($2 per share)..
Preceedg
For working caiptal. Underwriter — E. J.
Fountain & Co., Inc., New York.
^
(3/31)
Jan.
stock
for
of
Proceeds—To Romenpower Electra Con¬
Co., whieh received ■ the bonds in payment
preformed for the Republic or one of more
of its agencies. Underwriters—To be named
by amend¬
three
shares
10
held
cm
—
March
31; with subscription rights to expire
struction
Desert Queen Uranium Co., Salt Lake
City, Utah
of
new
on April 18.
Price
by amendment. Proceeds — For con¬
plant and office building, new equip--
First Bank Stock
Corp.
361,922 shares of capital stock (par $10)
being offered for subscription by stockholders of record.
Feb. 24, 1955 at the rate of one new share for each eight,
shares held; rights to expire March
14.
Price—$31.50
per share. Proceeds—For investments in stocks of bank¬
ing affiliates.
Underwriter—Blyth & Co., Inc, New
Feb.
ment
and working capital.
Underwriter—Blyth & Co.,
Inc., San Francisco and New York..
Jan. 26 (letter of notification)
259,500 shares of common
stock (par two cents).
Price—$1 per share. Proceeds—
Electronics Co. of Ireland
for
mining operations. Office—506 Judge Building, Salt
City, Utah. ► Underwriter
Selected Securities
Ltd., Los Vegas, Nev.
Lake
shares for each
new
—To be supplied
ment.
Jan.
6 filed 300,000 shares of capital stock.
Price—At
($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
—
par
Desert Uranium Co., Salt Lake
City, Utah
Oct. 18 (letter of notification)
2,000,000 shares of com¬
mon stock Price—At
par (15 cents per share). Proceeds
Bldg., Philadelphia, Pa.
—For
Price—$5 per
Van Blerkom &
Co.,
city.
same
Feb.
Corp., San Diego, Calif.
2,000,000 Shares of capital Stock (par $1).
share. Proceeds—For investment.
14 filed
NEW
Associated
Food
(S.
cents).
Puller
Inc
&
Co.)
$2,000,000
Chesapeake & Colorado Uranium Corp.
-
(Peter
Sc Co.)
Morgan
Common
Catalin
"/
ReM
(Fulton,
Co.)
&
(Thursday)
March
Meyer & Barnett)
(Kidder,
Kansas Gas & Electric Co
11
March 30
*
EST)
a.m.
&
a.m.
Arkansas Power
-
First
and
Union
California
(Willis E.
Co.)
Staats
&
Sun
Inc.)
Hotel, Inc
White Canyon
(Joseph
&
Co.)
1,211,002
&
March
16
Florida
Common
Kibbe
&
Co.
$3,000,000
(Offering to stockholders—to be underwritten) 153.236 shares
(Blyth
&
Inc.
Co.,
Corp.
March
Hanover
Fire
17
&
Weeks)
Co
Utilities
Eleven
April
shares
(Offering
&
underwriting)
Electric
Co.___
$168,858
Dec.
Bonds
$7,500,000
(Thursday)
14
Fenner &
Pieroe,
Beane)
by Merrill
331,643 shares
-
March
?
.
21
•
ler
,
April 25
(Bids
Noel
&
Co.)
$1,375,000
&
,
*
'
"
Co.)
i
$4,700,000
.
>
;
; (
•
.
Beneficial Standard Life
Insurance
Brothers)
National Gypsum Co
:
New
__d_.Common
;'
';
>4
,
(Bids to
i
*
j:
Norman
to
Co.?—
Jackson
&
Curtis)
JL24.667
by
Paine,
Lynch,, Pierce,
<;
(Bids
&
to
23
Beane)
3.30
p.m.
May 24
$5,000,000
Power
Alabama
Joy Manufacturing
shares
Co..
(Bids
Debentures
(Bids
noon
EST)
''
*
$37 per share.
Proceeds
—
Together with
Boston
Globe
Jan.
of
First
Corp., New York.
Metallurgical Corp.
147,500 shares of common stock (par $5),
30,000 shares are to be offered to a group
18 filed
which
11
a.m.
7
EST)
to
be
$15,000,000
(Tuesday)
invited)
November 9
Southern
f
(Bids
$25,000,000
be
I
(Wednesday)
invited)
500,000
shares
—
$10 per share.
Petersburg, Fia.
31,500 shares of class A
(par $1). Price—$7.75 per share. Proceeds — To
notes and other obligations and for working
Gulf Cities Gas Corp., St.
Feb.
i
15
stock
repay
Common
to
Price
Expected in very near future.
.Bonds
Co.
117,500 shares are to be offered to public.
Proceeds — For capital improve¬
ments and working capital. Office—Beverly,
Ohio.^ Un¬
derwriter—McDonald & Co., Cleveland, Ohio. Offering—
parent,1 and
Bonds
*
i
Equip. Trust Ctfs/ *
$8,400,000
—
used for expansion program. .Under¬
t
(Tuesday)
^
.
—
(P. H.)
other funds, to be
^
Virginia Electric & Power Co
(Hallgarten & Co.; R. W. Pressprich & Co.; and
Adamex Securities Corp.) $20,000,000
Southern Pacific Co
Price
16.
'
?L-Bonds
$30,000,000
Co
June
Common
345,760
,
of record March 1, 1955 on the basis of one new share
for each 1.76 shares then held; rights to expire on March
•
(Wednesday)
EST)
city.
composed largely of stockholders of Globe Iron Co, the
Brewing Co
(Bids
invited)
,
same
writer—The
M:j
.
(Tuesday)
1
(Bids
March
Harvard
be
I y
Preferred
Fenner
RR.^.Eq. Tr» Ctfs.
$4,080,000
Co.-._:_Ll.-_l'-'_
Edison
Webber,
invited)
Under¬
Co.,
being offered fol* subscription by common stockholders
shares
Western Auto Supply Co
(Merrill
Ohio
Common
...
stockholders—underwritten
be
>-,r
May 17
...
(Offering
'
$12,000,000
EST)
York/Chicago & St. Louis
:
'
•
■r
(Oflering to stcckhoiders—underwritten by W. E: Hutton & Co.
and Blyth & Co., Inc.) 464,325 shares
Van
a.m.
«►.
Co., Spring Grove, Pa.
Feb. 9 filed 125,000 shares of common stock (par $10)
—Bonds
Co.__Common
shares
480,000
:''
Georgia Power Co
11
>
Uranium Corp.,
Glatfelter
May 1Q (Tuesday)
-
due
writer—P. G. Christopulos &
Space & Co.) $9,640,000.
'
j!
debentures
1980.
fice—404 Boston Building, Salt Lake City, Utah.
(Monday)
2
(Johnson, Lane,
(Bids
(Lehman
$50,000,000
'
CL_—J_.____Comrticri'
(Courts
...
,
(Tuesday)
Atlantic. Steel Co.-'
■
_^i_:.^__^__Bonds
invited)
'■
22
1,
Salt Lake City, Utah
Oct. 27 (letter of notification) 1,200,000 shares of com¬
mon stock.
Price—At par (25 cents per share). Pre-,
ceeds—For development and exploration expenses. Of¬
(Monday)
Co
be
Offering—Expected momentarily.
writer—Smith, Barney & Co., New York.
Augusta Newspapers, Inc....Preferred & Common
"
.
,
March
to
May
^.......Common
AlsLyne,
Electric
Philadelphia
1
$600,600 *
Co..
(Van
Common
Corp.) 384,861 shares
_______Debentures
(Paul C. Kimball & Co.)
Oil
Co., New York.
General
General Shoe Corp
i.:_—„
.Debentures
I
(Smith, Barney & Co. > $19,000,000 "
*«Kin-Ark
per
Price—To be supplied by amendment
Proceeds—To retire a $3,000,000 promissory note, for ad-,
ditions and improvements and working capital. Under¬
'<
>
filed
^General Shoe Corp. (3/21-22)
March 4 filed $10,000,000 of 25-year
Securities
(Friday)
Westpan Hydrocarbon Co
(May be Onion Securities
(Monday)
Model Finance Service, Inc
Webster
165,000 shares
April 15
\
-
1
&
.Common
&
March
Lynch,
-v5
Stone
and
Corp.)
..
r
Corp.
15
Price—$5
'<
.Common
„
stockholders—underwritten
to
First Boston
(The
Common
stockholders—no
to
Oklahoma Gas
■'
(Friday)
Street Corp
Moore
Offering
18
General
Homes, Inc.
300,000 shares of common stock (par $1).
share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I.. N. Y. Underwriter—S. D. Ful¬
(Tuesday)
Savannah Electric & Power Co
March
Securities
Co
(Elds to be invited)
Common
100,000
Webster
&
$15,000,000
April 5
West Texas
(Offering to stockholders—underwritten by The First Boston
Corp. and R. W. Pressprich & Co.)
77,350 shares
•
$14,000,000
(Thursday)
Insurance
Co., Salt Lake City, Utah
Dec. 9 (letter of notification) 11,000*000 shares of capital
stock (par one cent). Priee—Two cents per share. Pro¬
ceeds—For exploration and development of oil and ura¬
nium properties. Office — 414 Judge Bldg., Salt Lake
City, Utah. Underwriter—Utah Uranium Brokers, same
city.
...Common
Stone
and
Corp.)
Debentures
Hornblower
and
.
(Friday)
Corp...
Co.
&
j j,
(Canada)
par ($1 per share).
Proceeds—For explora¬
development costs. Office — 100 Adelaide St.
West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.'.
210,000 shares
April 4 (Monday)
Weld
"
■
Gatineau Uranium Mines Ltd.
Gem Uranium & Oil
Telephone
(White,
Underwriter—Norman D. Patterson, Jr.*
Price—At
Transcontinental Gas Pipe Line Corp....Preferred
Common
Finance
Paso, Tex.
tion and
by Blyth
(Offering to. stockholders—no underwriting)
■
(Wednesday)
Bishop Oil Co
Pacific
Co., Inc.)
April 1
$6,800,000
Co. and A. P.
El
Aug. 10 (Regulation "D") 300,000 shares of crvimon stock.
.Common
(Offering to stockholders—underwritten
shares
Mining Co.r
McManus &
*'
(Thursday)
Corp.
Preferred & Common
(Coombs
Anthony, Tex.
Preferred
$9,350,000
EST)
a.m.
March 31
Co.;
Common
Co.,
Light Co.____
11
/
;
$1,500,000
Ltd
Burnside &
Bonds
$18,000,000
EST)
(letter of notification) 20,000 shares of common
stock (no par). Price—$5 per share. Proceeds—For con¬
struction of plant and refrigeration. Address—Box 306,
,
ElectroData
Oils,
&
(Bids
*
Southern
;
Preferred
R.
v
of the promoters.
one
Frio Frozen Foods, Inc., Anthony, Texas
.
"
Light Co
11
$6,000,000
Weeks;. William
&
$10,000,000
(Wednesday)
(Bids
-Preferred
'
(Hornblower
Co.)
Power
Arkansas
$10,000,000
Southern Nevada Power Co
■
&
O'Brien,
Jan. 25
'
11
Preferred
....
Bonds
EST)
a.m.
Kansas Gas & Electric
(Bids
(Tuesday)
Peabody
C.
Corp., Grand Junction, Colfe
Aug. 16 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
exploratory and development expenses? Office — 618
Rood Avenue, Grand Junction, Colo.
Underwriter —
Joe Rosenthal, 1669 Broadway, Denver, Colo.
$65,000,000
Corp.)
'
Price—At par
stock.
Four States Uranium
*
•
(Bids
29
Collins Radio Co.__._
Common
and Franklin,
$3,150,000
*
Securities
$1,000,000
Holly Uranium Corp
'-(Barrett Herrick & Co., Inc.
*
Union
and
Preferred
common
($4,500 per share). Proceeds — For down payment on
purchase price of mill facilities and for other expenses.
Chicago, Rock Island & Pacific RR.—.Debentures
(Tuesday)
Corp.
'
;
15
Underwriter—None.
Plywood Co., Vancouver, Wash.
Feb. 21 filed 397 shares of
(The First Boston Corp.; Blyth & Co., Inc.; Glore, Forgan & Co.;
March
Office—Ocala, Fla.
program.
Fort Vancouver
.....Common
■
(Franklin, Meyer & Barnett) 299,700 shares
(4/1)
be
Underwriter—John
March 24
Common
Corp.
77,350 shares of common stock (par $10)
offered for subscription by common stockholders
of record April 1, 1955, and by certain officers and em¬
ployees. Price—$13 per share. Proceeds—For construc¬
$750,000
Concord Supplier & Equipment Corp
working capital. Underwriter — Tschim
Co., Delta Bldg., New Orleans, La.
if Florida Telephone
<Offering to stockholders—underwritten by Merrill,
Lynch, Pierce, Fenner & Beane; Bacon,
Whipple & Co.; and Dean Witter
& Co.) 108,885 shares
Common
_
and for
March 4 filed
tion
Sundstrand Machine Tool Co....
Corp., Houma, La.
585,000 shares of common stock (par 10
Price—$5 per share. Proceeds—To buy equip¬
filed
Investment
CALENDAR
(Monday)
Stores,
D.
ISSUE
14
ment
to
March 14
filed
Flo-Mix Fertilizers
it Eleven Moore Street Corp. (3/18)
March 3 (letter of notification) 28,143 shares of
capital
Dec.
4
York, and San Francisco.
Underwriter—None.
Electronics Investment
exploration and development expenses. Office—
524 Atlas Bldg., Salt Lake
City, Utah. Underwriter-
Uranium, Inc.
Office—506 First Security Bank Bldg., Salt Lake City,
Utah.
Underwriter—Utah Securities Co., same city.
same
struction
work
Eula Bella
(letter of notification) 5,000,000 shares of com- ;
stock (par one cent).
Price—Five cents per share.;
Proceeds—For exploration and development expenses.'
(par $1)
to be offered for subscription by stockholders at the rate
amendment.
f
on
Financial Credit
if ElectroData
Price-—Tb be supplied by
1983.
1955
mon
address.
$2,500,000 of Veterans, Courts and Public
bonds due
Underwriter—D.
3,
Oct. 18
Investment Co.
(letter of notification) 25,000 shares of common
stock (no paf). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Tex.
Cuba
March
each
.
Jan. 20
Budget and Mutual and for working capital. Office—
815 Fidelity Union Life Bldg.,
Dallas, Tex. Underwriter
-—Securities Management Corp:, same address.
for
subscribed shares.
•
East Texas Loan &
,
record
the basis of three
share held; rights to expire, on.
April 8, 1955. Price—$6 per share.- Proceeds—'Together-'
with funds from mortgage loan of
$350,000 to redeem
$581,706 outstanding income mortgage loan certificates.
Office—141 Broadway, New York 6, N. Y. Underwriter ;
—None, but Breswick & Co., New York, will buy uh-
vestment.
underwriter. Price—$1,400 per unit; and $2
share.
Proceeds—To buy common stock
common
of
shares
new
Moab, Utah. Underwriter—Security Uranium Service,
Continental Loan Co., Dallas, Tex.
Dec. 22 (letter of notification) $150,000 of 4% 16^yfeAr/I Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.
debentures and 42,000 shares of common stock (par 10 ; '.'it Diversified Investment Fund, Inc.
March 2 filed (amendment) 1,000,000 additional shares
cents) to be offered in units of $1,000 of debentures and
of capital stock.
200 shares of stock; remaining 12,000 shares to be pur¬
Price—At market. Proceeds—For in¬
chased by
(par $1) to be offered for subscription by stock-
holders
stock
mon
57
(1185)
(letter of notification)
Continued
on
page
53
The Commercial and Financial Chronicle
Continued jrom page
Underwriter—Eisele & King, Libaire, Stout &
Letter to be withdrawn; full registration
about 50,000 shares expected. Offering - Expected
Adamex
Justheim
of
about May 2.
Utilities Co.
Gulf States
160,800 shares of preferred stock (par$100). Proceds—To redeem 50,000 shares of $4.50 divi¬
dend preferred stock, 60,000 snares of $4.40 dividend
preferred stock, 1949 series, and 50,000 shares of $4.44
dividend preferred stock at the prevailing redemption
prices of $105, $105, and $105.75, respectively. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Stone & Webster Securities Corp.; Lehman
Brothers and Equitable Securities Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Had tentatively been expected to bo
May 14, 1954 filed
to 11:30 a.m. (EDT) on June
Hanover Bank, 70 Broadway, New York, N.
received
up
15 at The
Y., but of¬
9
(letter
Feb.
1985.
tion
Halsey, Stuart &
Goldman Sachs &
Bear, Stearns & Co. (jointly); Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
due 1981 and $10,000,000 of 3%% «
ftot mortgage bonds due 1983, and for general corpo- -
Feb. 11 filed
Kansas
&
Gas
Electric
Lowell, Mass. (3/23)
common stock (par $1),
which the Attorney General, as successor to the Alien
Property Custodian, is the owner and proposes to offer
at competitive bidding. If any such bid is accepted, and
if the successful bidder plans to distribute the shares,
Harvard Brewing Co.,
the
will
company
shares of
file
post-effective
amendments
to
supply the requisite additional information.
Thef<?"are;
625,000 shares outstanding.
Bids—To be received by'
jOffice of Alien Property, Room 664, 101 Indiana Ave.,
N.
W., Washington 25,"D. C., up (o 3:30 p.m. (EST) on
March 23.
Inc.
J.
notification) 22,670 shares of common
stock (par $1), of which 12,670 shares are to be offered
for subscription by stockholders up to and including
June 15, 1955, and 10,000 shares are to be offered pub"licly. Price—$5 per sfifore. Proceeds—For working capi¬
tal, etc. Office—35-10 Astoria Blvd., Long Island City,
N. Y. Underwriter—Smith & Co., Waterville, Me.
• Heliogen Products,
March 7 (letter of
*
Hobby & Brown Electronic Corp.
Feb. 24 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1.25 per share. Proceeds
—TO increase inventory and for working capital. Office
—55 Front St.,
Rockville Centre, L. I., N. Y. Underwriter
—W. Harry Young Co., Garden City, L. I., N. Y.
H6lly Uranium Corp., New York (3/15-17)
10 filed 900,000 shares of common stock (par $1).
Price—$3.50 per share. Proceeds—To exercise certain
properties in Utah and New Mexico. Under¬
writer—Barrett Herrick & Co., Inc. and Franklin, Meyer
& Barriett, both of New York.
on
^ Industrial Hardware Manufacturing Co., Inc.,
New York
•
March 9 filed $3,000,000 of 6%
of which
1975,
offered first
amendment.
$2,596,600
debentures due March 1,
principal amount are to be
Price—To be supplied by
Proceeds—To purchase preferred stock of
to
stockholders.
Hugh H. Eby Co., at par; to purchase real estate, ma¬
chinery and equipment, etc.; for the acquisition of all
common stock of Eby company and to pay certain bank
loans
'
and^notes payable of Eby.
Inland Western
Loan
Feb. 17 filed 2,500,000
&
Finance
Corp.
shares of class A non-voting
to
and to finance establishment and operation of additional,
Office—Phoenix, Ariz. Under¬
writer—None.
Israel
Feb.
28
Merritt-Chapman & Scott Corp.
21 filed 3,018,567 snares of common
each
12
on
held.
shares
ers—Previous
the basis of one new share for
Price—TO"be supplied by-amend¬
common
Underwrit¬
stock financing was underwritten
Blyth & Co.'Inc., New YOrk?:an&. J. J. B. Hilliard
by
&
for subscription-by-commoir stockholders:
March 21
Proceeds—For construction program.
ment.
,
,
Son, Louisville, Ky.
•
-
; '.v
:
Co., El Dorado, Ark. (3/21-25)
Feb. 24 filed 500,000 shares of common stock (par JO
•
Kin-Ark Oil
share- Proceeds — To repay
$279,000 mortgage indebtedness and $45,500 outstanding
notes; to pay $70,000 outstanding accounts payable, and
for drilling of 14 additional wells and working capital.
Underwriter—Van Alstyne, Noel & Co., New York.
Price
cents).
—
$2.75
per
it Kisk Industries, Inc., Lansing, Mich.
Feb. 25
(letter of notification) 250,000 shares
cumulative convertible class A stock. Price—At
of 6%
par
Proceeds—For manufacture of plastic tools
and dies. Office—1301 Turner-St., Lansing, Mich. Under¬
writer—Carr & Co., Detroit, Mich.
Aug. 2 filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents per share, U. S. funds.
Proceeds — For development and exploration expenses.
Underwriter—To be named by amendment.
(par one
Plantations, Ltd.
*
shares of ordinary common stock
Israeli, pound). Price—$10 per share. Proceeds
24,900
—For capital expenditures.
Underwriter—None.
Offices
Jarmon Properties & Oil Development Corp.
17 (letter of notification) 30,000 shares of captal
stock. Price—At par
($10
per
share). Proceeds—For fur-
Ather exploration and development.
Addres—P. O. Box
1109, Wichita Falls, Tex. Underwriter—John A. Aicholtz
& Associates, 505 Macon St., Fort Worth, Tex., and an¬
other.
ment, to clear and drain land, prepare and fertilize soil,
and to plant trees.
Joy Manufacturing Co.
(3/23)
28 filed $20,000,000 of sinking fund debentures
Price—To
be
supplied by amendment.
Pro¬
Chemical Corp,, :at the
&
shares for each share of common stock ol
of 1*4
Tennessee; 755,105 shares to holders of the 453,063 out¬
(par $2) of Devoe.
of 1% shares for each'
standing shares of class A stock
at the rate
Raynolds Co., Inc.
share of class A stock of Devoe;
of
the
182,025
242,700 shares to holders
outstanding shares
of class B common
of Devoe, at the rate of 1% shares for
each of class B common stock of Devoe;. 1,290,252 shares
stock
(par $1)
to holders of
the 1,290,252 outstanding shares of common
(par $1) of New York Shipbuilding Corp., at the
rate of one share for each share of common stock of N. Y.
stock
Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel
Corp., not owned by Merritt, at the rate of one share
for each 2.1 shares of common stock of Newport; 26,114
shares to holders of the 17,409 outstanding shares of
stock
common
owned
not
by
of Marion Power Shovel Co.,
(par $10)
Merritt,
at
the
rate
of
lfa
shares for
shares
of common stock of Marion; and 940
each share
of the
holders
outstanding shares of class B
common stock
(without par value) of the Osgood Co.,
not owned by Merritt or Marion, at the rate of one share
for each 1 % shares of class B common stock of Osgood.
Offer will expire on March 14. Dealer-Manager—A. C.
to
1,410
Allyn & Co., Inc. for Devoe & Raynolds exchange.
;
Inc., Wichita, Kans.
*
Feb. 9 (letter of notification) 75,000 shares of common
stock (no par). Price—$4 per share. Proceeds—To com¬
Mesa
Petroleum
wells
plete
already
Co.,
drilled
on
properties
owned
by
company; and to drill additional wells. Office—303 In¬
surance
Building, Wichita; Kans. Underwriter—Albfert
C.
Schenkosky, same city.1
Canned Beverages
Co., Hialeah, Fla:
notification) 200,000 shares of common
Price—At par ($1 per share): Proceeds—To pur¬
Mi-Ame
Oct. 28 (letter of
stock.
materials and
raw
ing capital.
machinery, and for work¬
new
Underwriter
—
Frank D. Newman
& Co..
Miami, Fla.
Micro-Moisture
Controls, Inc.
notification) $250,000 of 6%% income
convertible debentures (subordinated) due Feb. 1, 1965,
to be offered initially to stockholders.
Price—100% of
par (in units of $100 or multiples thereof).
Proceeds—
For working capital, etc.
Office—22 Jericho Turnpike,
Mineola, N. Y. Underwriter—None.
Jan.
13 (letter of
Military Investors
Financial Corp.
(letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
Deo.
1
For-general corporate purposes. Office—2310 Main St.,
Texas. Underwriter—Cobb & Co., Inc., same
Houston,
city^..^
*
Missouri Uranium Corp.,
Libsrty UraniumCorp., Salt Lake City, Utah ■"
Kansas City, Mo.
July 1 (letter of notification) 3,000,000 shares of common
stock (par one cent).
Price-^Three cents per share.
Proceeds—For mining operations.
Office—402 Darling
Jan). 124 filed 150,000 shares of preferred stock (par $5)
Bldg., Salt Lake City, Utah.
Underwriter r—Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
—$5
Feb. 9
stock.
Lake Uranium,
Inc., Salt Lake City* Utah
(letter of notification) 8,000,000 shares of capital
Price—At par (two cents per share). Proceeds—
Lake
expenses." Office—201 Boston Building, Salt
City, Utah. Underwriter—Kastler Brokerage Co.,
same
city.
For. mining
Lucky Strike
and, 150,000 shares of common stock (no par) to be of¬
fer edin units of one share of each class of stock. Price
•
Model
Feb.
28
total of
Service,
-
$600,000 of 6%
common
Inc. ' (3/21-25)
subordinated debentures,
stock purchase warrants for a
18,000 shares of $1 par value common stock (a
for 30 shares for each $1,000 debenture) to.be
a $500 debenture, plus a warrant for
offered in units of
-
Jan. 4 (letter
of notification) 4,300,000 shares of common
cent). Price—Five cents per share. Pro¬
ceeds—For mining operations.
Office—38 South Main
stock (par one
Salt Lake City, Utah.
Finance
filed
with detachable
warrant
Uranium Corp.
Proceeds—For exploration and develop¬
unit.
per
ment, etc. Underwriter—Dale E. Kiepinger & Associates,
203 ,W* Dartmouth, Kansas City, Mo.
.
Underwriter—Seaboard Se¬
Mac Fos Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification> 4,000,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake City, Utah. ^Underwriter-^Utah Securities Co., same city.
:
~
_
Feb.
1975.
devel¬
thereon, together with marketing arrangement
aggregate of $689,400., Price—$1,800 for each two acre
purchase together with grove5 development contracts
under which company will plant and develop orange
and/or lemon groves thereon. Proceeds—From land, to
reimburse company and as profit; from grove develop¬
Products
of Tennessee
$5)
rate
in
curities Corp., Washington, D. C.
Jan.
due
March 3 contracts for sale of land and citrus grove
opment
St.,
—Natanya, Israel, and New York, N. Y.
•
+ Lemon Bay Co., Washington, D. C.
Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the foUowing basis: 675,549 shares to holders
of the 540,439 outstanding shares ol common stock (par
chase
Can.
Lake Lauzon Mines, Ltd., Toronto,
Newport Steel Corp., Marion
Inc.,
Co.,
share).
per
(par
stock
$12.50) being offered in exchange for outstanding stock
of New York Snip building Corp., Devoe & Raynolds
($1
,
Pecan
filed
Kellogg, Ida.
notification) 200,000 shares of common
stock (par 35 cents). Price—75 cents per share. Proceeds
—For mining expenses.
Underwriter—Standard Securi¬
ties Corp., Spokane, Wash.
Dec.
60,000 shares of cumulative
be offered
of record
Luckv
com¬
stock (par $1)'. Price—$1.^5 per share. Proceeds—.
To be used ps operating capital for its two subsidiaries,
mon
loan and finance offices.
exchange for
in
offered
Feb. 17 (letter of
N. Y.
•
Feb.
options
Y.
64,000 shares of common
Mascot Mines, Inc.,
•
;
(3/15)
Co.
,
345,760
Midland Corp., Buffalo, N.
filed
15
March 2.
preferred stock
(par $100):
Proceeds—To repay bank loans and for
rate purposes.
construction program. Underwriter—To be determined <
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
by.; competitive 'bidding.
Probable bidders: Lehman
CJo. Inc.; Lehman Brothers; Merrill Lynch, Pierce, FenBrothers; Blyth & Co. Inc.; Union Securities Corp.;
ner & Beane and White, .Weld & Co.
(jointly); Salo- * White, Weld & Co. and Shields & Co. (jointly); Kidder,
mon Bros. & Hutzler and Union Securities Corp.; Kuhn, *
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Beane (jointly). Bids — To be-received up to ,11. a.m/,
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(EST) on ,March 15, at Two Rector St.,. New York 6, •
(jointly); Stone & Webster Securities Corp. Bids—Had
N> y.
1 1
^
~
■
tentatively been expected to be received up to 11 a.m.
it Kentucky Utilities Co., Lexington* Ky.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
March 7 filed $5,000,000 first mortgage'bonds, series F,
New York, N. Y., but offering has been postponed.
due April 1, 1985. Proceeds—For construction program.
Hanover Fire Insurance Co.
(3/17)
Underwriter—To be determined by competitive bidding..
Feb. 24 filed 100,000 shares of capital stock (par $10) to
Probable bidders: Halsey, Stuart & Co. Inc.; Harriman
be offered for subscription by stockholders of record
Ripley & Co. Inc.; The First Boston Corp. and Lehman
March 16 at the rate of one new share for each four
Brothers (jointly); Union Securities Corp. and Merrill
shares held; rights to expire on April 4. Price—To be
Lynch, Pierce, Fenner & Beane (jointly); Blyth & Co.,
supplied by amendment. Proceeds—To be added to the
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
general funds of the company to enable it to expand its *
(jointly); Equitable Securities Corp.
'
business, particularly in the writing of casualty and mul¬
* Kentucky Utilities Co., Lexington, Kyw a;
tiple-line policies. Underwriters—The First Boston Corp.
March 7 filed 190,566 shares of common stock I (par$lOJ,
and R. W. Pressprich & Co., both of New York.
filed
—
—
7
^
first mortgage bonds
1
cent per share).
Office—587
stock (par $5)
all of the outstanding
stock of Bank ot Gowanaa at the rate of eight shares of
Marine Midland common for each Bank of Gowanda
share held of record March 4, 1955; offer to expire on
March 17.
Underwriter — None. Statement effective
(jointly); Blyth & Co., Inc. and The First Boston
Corp. (jointly); Union Securities Corp. and Stone &
Webster Securities Corp. (jointly); Lehman Brothers and
15, at Two Rector St., New York 6,
Feb.
City, Utah.
Marine
being
Co.
May 14, 1954 filed $24,uuu,00 first mortgage bonds due •
June 1, 1984. Proceeds—To redeem $10,000,000 of 3%% ;
"
•
Feb.
Underwriter—To be determined by com¬
program.
shares of com¬
Pro¬
11th Ave.,
Underwriter—Potter Investment
(one
par
Co., same city.
Electric Co.
petitive bidding. Probable bidders:
Co. Inc.; Glore, Forgan & Co. and
Lake
Salt
(3/15)
11 filed $10,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for construc¬
&
Gas
Kansas
Price—At
ceeds—For mining operations.
Under¬
Phillips Petroleum Bldg., Salt Lake City, Utah.
writer—Hunter Securities Corp., New York.
Canyon Uranium, Inc.
(letter of notification) 20,900,000
stocK.
mon
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly).
Bids
To be received up to 11 a.. (EST) on March
fering has been postponed.
Gulf States Utilities Co.
Marble
Feb. 4
Petroleum Co.
of notification) 2,650,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds — For oil and mining expenses.
Office—318
Dec.
City, Utah. Under¬
city,:
writer—Mid-Coninent Securities, Inc., the same
ers—Hallgarten
New York.
Co
„
Thursday, March 10, 1954
Office—65 East 4th South, Salt Lake
expansion and working capital. Underwrit¬
& Co.; R. W. Pressprich & Co.; and
Securities Corp., all of-New York.
ceeds—For
57
capital.
•
...
(1136)
53
Magic Metals Uranium Cocp.:■
*■^
Sept. 14 (letter of notification^-$$95,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.
Proceeds—For exploration and deVCtopbMmt expenses.
purchase of 15 shares of stock at $2 per share. Price—•
$500 per unit. Proceeds—For payment of certain notes.
Office—Jackson, Mich. Underwriter—Paul C. Kimball
&
Co., Chicago, 111.
it Mohawk Airlines, Inc.
March 4 (letter of notification)
100,000 shares of corn-
stock (par $1). Price—$3 per share. Proceeds—To
existing liabilities.
Office—Cornell University
Airport/Ithaca, N. Y. Underwriter—None.
mop,
reduce
Monte
Oct. 5
Cristo
Uranium Corp., Moab, Utah
(letter of notification)
3.000,000 shares of com¬
(par one cent). Price—10 cents per share.
Proceeds—For exploration and development expenses.
Underwriters-James E. Reed Co., 139 North Virginia
mon
stock
St., Reno, Nev.
Volume 181
Number 5410
...
The Commercial and Financial Chronicle
Montezuma
Uranium, Inc., Denver, Coio.
(letter of notification) 3,000,000 shares of Com¬
mon stock
(par five cents). Priee—10 cents per share.^Proceeds—For exploration and development operations.
Jan.
stock
5
Office—Ernest and Cranmer Bldg., Denver, Colo.
derwriter—Investment Service Co., same city.
28
10,000,000 shares of com¬
(two cents per share). Pro¬
ceeds—For mining operations.
Office—470 South 13th
East, Salt Lake City, Utah. Underwriter—M. C. Leon¬
ard
and
Price—At par
Feb.
Utah.
100,000
Shares
Corp., New York
i•
Price—At
be offered
one
share
new
for
each
four
shares
held
as
of
Shumway Uranium Mining Corp.
(letter of notification) 200,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min-*
ing expenses. Office—64 East 4th South St., Salt Lake
City, Utah. Underwriter—Doxey Investment Co., same
city.
*
' •'
Jan. 28
Silver Pick Uranium, Inc., Reno, Nev.
Nov. 22
of
preferred
5%
Proceds—For
common
stock
record
(par
Silver Reef Uranium Co., Salt Lake City,
17 (letter of notification) 3,000,000 shares
Jan.
March «3
filed
of com¬
(par five cents). - Price—10 cents per share.
Proceeds—For mining expenses. Office—130 South 13th
East, Salt Lake City, Utah. Underwriter—Peters, Writer
&
Christensen, Inc., Denver, Colo.
if Sinclair Oil Corp., New York
March
1,908,000 shares of common stock
Utah
stock
mon
★ Pioneer Fund, Inc., Boston, Mass.
March 10; rights to
expire on March 25. Price—$30 per
Proceeds—For investment; -Underwriter—None..?
share.
exploration and development costs. Of¬
Virginia Street, Reno, Nev. Underwrite?
Corp., Las Vegas, Nev.
fice—211-206 N.
—Western Securities
due 1970,
$25) and
(par 10 cents) to be
stock
(letter of notification) 2,994,000 shares of com¬
(par five cents). Price—10 cefots per share
stock
mon
debentures,
of common
stock.
Price—To be supplied amendment.
Proceeds—
For acquisition of producing oil and gas properties. Un¬
derwriter—Smith, Barney & Co., New York.
..
(par $5) to
subscription by stockholders at rate of
for
Pro¬
offered in units of $750 principal amount of
10 shares of preferred stock and 100 shares
National Aviation Corp., New York
18 filed 111,618 shares of
capital stock
-Feb.
shares
1,000,000 shares of
March 7 filed 96,327 shares of common stock.
market.
Proceeds—For investment.
share.
Petroleum Reserves, Inc., New Yotk
14 filed
$7,500,000 of 4% debentures
Associates, 602 Tribune Bldg., Salt Lake City,
Mutual
per
Underwriter Co.. the same city.
(letter of notification)
stock.
mon
Price—10 cents
A Pdcos Mining Co., Dallas, Texas
Feb. 21 (letter of notification) 5,990,000 shares of com¬
mon stock.
Price—At par (five cents per share).
Pro¬
ceeds—For exploration and drilling expenses and work¬
ing capital. Underwriter—Carroll, Kirchner & Jaquith,
Inc., Denver, Colo.
\
Mother Lode Uranium Co.
Jan.
(par two cents).
ceeds—For exploration and development costs. Office—
230 Fremont St., Las Vegas, Nev.
Underwriter—Allied
Un¬
59
(1187)
to
(par
7' filed
337,830 shares of
common
stock (no par)
be offered in exchange for shares of capital stock of
$2.50>v
/market. Proceeds—For investment.
Subscription Agent—The Hanover Bank, New York
City..,# ■Jt Pdyfwme-Racking
Co., Inc., San Juan,
National Gypsum Co. (3/22)
tendered for
Feb.
-
Feb. 21 -
at least
stock fpar
Slick Rock Uranium Development Corp.
Oct. 8 (letter of notification) 2,900,000 shares of common
stock (par five cents),, including shares for optibn to
28
filed 464,325 shares of common stock
(par $1)
offered for subscription by common stockholders
„of record March 21, 1955 at the rate of one new share
.for "each
six shares held; rights to^ expire on
April 4,
Price—To be supplied by amendment. Proceeds—
capital expenditures and working capital. -Underwriters—W. E/ Hutton & Co. and Blyth &
Securities Go:r
1955.
Co.; Inc.,
of New York.
tablish and operate drug stores.
.^National Shares Corp., New York
/March
ito
be
7
filed
offered
St., Reno, Nev., Underwriter
Dec. 22 filed 250,000 shares of cumulative preferred
(par $100).
rate
of
one
new
share
for
each
-rights to
expire on.March 31. Price—At par ($100 per
Proceeds—To repay advances from American
-Telephone & Telegraph Co., the/ parent, which owns
11,769,035 /shares
(69.21%) of the
outstanding stock.
Underwriter—None.
record March
each
Pacific Coal & Oils, Ltd.,
Toronto, Canada
Dec. 28 (regulation "D")
275,000 shares of common stock
will
;
Proceeds
;
To selling stockholders.
Underwriter—L. D. Friedman & Co., New York.
-
New Silver
stock
stock
each
eight
shares
be
construction
of
one
share
new
will
be
supplied
program.
Ritter
—
Pierce, Fenner & Beane, New York.
unit.
★ P & H Supply Co., Inc., Fort Wayne, Ind.
capital.
^eb. 21
"stock.-
(letter of notification)
Price—At
erection
ings.
and
par
($100
construction
Office—101-103
Ind.
1,250 shares of
share):
per
of
East
new
and
Columbia
common
Fort
Wayne,
issued
-share.
•full,
by
Pacemaker Insurance
legal "
limitation.
life
reserve
and
Office—5534
disability
N.
33rd
Underwriter—None.
*•
Co.
Price—$3
Proceeds—To be used to engage in
Pacific
Finance
.Feb. 21 filed
*
Corp.
business
insurer
Ave.,
*
as
Ariz.
.
(3/16)
$14,000,0p0 of 4'%% capital debentures due
be supplied by amendment. Proceeds—
To redeem-outstanding $9,000,000 5%%
capital deben
1967.
due
writers
1973.
Office— Los
Blyth
&
Angeles, Calif. Under¬
San Francisco and New
Co., Inc.,
FYork; and Hornblower & Weeks, New York.
—
tif Pacific Northwest Pipeline Corp. "March 9 filed $17,220,000 of 6% interim notes due June
1, 1957 and 287,000 shares of common stock (par $1) to
¬
Salisbury Broadcasting Corp., Paxton, Mass.
$150,000 of 5% notes and
6,000 shares of common stock (par $1) to be offered first
to stockholders in units of $1,000 of notes and 40 shares
of stock. Price—$1,000 per unit. Proceeds—For working
capital. Office — Asnebumskit, Paxton, Mass. Under¬
Jan. 20 (letter of notification)
writer
be offered in units of $60 principal amount of notes and
share of stock. Price—To be supplied bv amendment
(expected to bet$70 per unit). Proceeds—Together with
other funds, to finance construction
of a 1,466 mile
Sept.
one
Wash,
on
the Canadian
Ignacio, Colo., and Sumas,
Underwriters
White,
border.
—
Weld & Co.; Kidder, Peabody & Co.; The Dominion Se¬
curities Corp.; and Union Securities Corp.
Financing
plans
include
offering
1,549,100 shares of
also
common
Paramount
to
present
stockholders
stock at $10
Uranium Corp.,
per
of
share.
Moab, Utah
Oct. 7
(letter of notification)
ftock.
Kinsley & Adams, 6 Norwich St., Worcester,
Price—At par (five cents per share).
6,000,000 shares of capital
Proceeds—
City, Utah
Pay Day Uranium Co., Las Vegas, Nev.
Oct. 15 (letter of notification) 2^00,000 shares of capital
Samicol Uranium Corp., Santa
300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R
V
Klein
Co.
and
McGrath
Securities
Corp.,
both
of
New York.
Miguel Uranium Mines, Inc.
Jan. 6 (letter of notification) 2,000,000
stock
(par
Grand
one
shares of common
per share.
Pro¬
— Mineral
Bldg.,
Underwriter — Tellier & Co.,
cent). Price—15 cents
operations. Office
Junction,
Colo.
Jersey City, N. J.
A Shareholders' Trust of Boston
March
of
2
filed
beneficial
Co., San Francisco, Calif.
.
(amendment)
interest
in
the
Proceeds—For investment.
(Mass.)
1,000,000
Trust.
additional shares
Price—At
market.
.
,,
current
liabilities.
Office—Toronto, Canada." Un¬
Inc., New York.
derwriter—Willis E. Burpside & Co.,
if Standard Coil Products Co., Inc.•/
' -1
25 (letter of notification) 1,875 shares of common
stpck (par $1). Price—At,market.,. Proceeds—To Vivian
Richenthal, who is the selling stockholder,- Office—2085
N. Hawthorne Ave., Melrose Park, 111.
Underwriter—
Feb.
'
-
None.
•tar Uranium
Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of
Aug. 2
mon
stock
Proceeds
(par
,
com¬
cent). Priee—Five cents per share.
exploration and development costs.
one
For
—
Underwriter—Ned J. Bowman Co., Salt Lake City, Utah.
Stardust, Inc., Reno, Nev.,
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be
v
..
'
ottered in units of
—$10.01
one
share of each class of stock. Priee
unit. Proceeds—For purchase of land and to
equip a luxury hotel. Underwriter—None.
per
construct and
Sun
Hotel, Inc., Las Vegas, Nev., (3/15)
Feb. 16 filed 760,000
shares of pfd. capital stk. (par $9.50)
1,540,000 shares of common capital stock (par 25
cents), of which 680,000 shares of preferred and 1,360,000
and
to
are
be
offered
in
units of
one
preferred and
shares; the remaining 80,000 shares of pre¬
ferred stock and 180,000 shares of common stock may¬
be exchanged for properties.
Price—$10 per unit. Pro¬
ceeds—To purchase property; for construction of hotel;
and for working capital.
Underwriter—Coombs & Co.,
two
common
Salt Lake
San
California
' /
shares
Fe, N. M.
14 filed
ceeds— For mining
For mining expenses. Office—325 Main St.,
Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake
•
—
Mass.
natural gas pipe line between
meet
(letter of notification)
Underwriter—None.
Price^-To
tures
working
Paper Co., New York
.Feb. 18 filed 24,381 shares of common stock (par $5> to
be offered in exchange.for common stock (par $1) of
Michigan Molded Plastics, Inc. on the basis of one St.
Regis share for each 5*4 shares of Michigan common
stock of which there are 128,000 shares outstanding.
without
Phoenix,
;
St. Regis
a
Los
stock (par $1)
511,002 shares are to be offered for subscription
by existing stockholders on a basis of one new share for
each share held. Price — To stockholders, 50 cents per
share; and to public, 60 cents per share. Proceeds—For
exploratory and developmental expanses; for possible
acquisition of additional, oil and gas interests; and to
Berlin,
Inc.,
—
of which
Underwriter—None.
Products,
Office
Southern Union Oils, Ltd. (3/15)
Feb. 16 filed 1,211,002 shares of common
Conn.
5,727 shares of common
being offered for subscription by stockholders of
record Feb. 1, 1955 at the rate of one new share for each
two shares held; rights to expire on March 4, 1955. Price
—At par ($25 per share). Proceeds — For purchase of
machinery and equipment. Office—Fairview Place, Ber¬
lin, Conn. Underwriter—None.
per
construction.
Co., Laurel, Miss.
250,000 shares of common stock (par. one
cent). Price-r-$2 per share. Proceeds—For further ex¬
ploration and development of properties, for drilling
costs and for acquisition of interests in other oil com¬
panies. Underwriter—Gordon Graves & Co., Inc., Nevv
stock
Underwriter—None.
new
York.
loans and for
-
25 filed
Feb.
—
Proceeds—To reduce bank
28
For
—
Southern States Oil
Finance
Rowland
Jan.
improved build¬
-Ar Pacemaker Life Insurance Co., Phoenix, Ariz*
iFeb. 25 (letter of notification) 100,000 shares of common
-stock (par $1) to be offered to life insurance policy hold,ers
,v
Proceeds—For
St.,
and First
Inc.,
Co., Inc., Syncote, Pa.
Feb. 24 filed 4,000 shares of 5V2% cumulative preferred
stock, third series (par $50) and 40,000 shares of class
B common stock (par $1) to be offered in units of one
preferred share and 10 class B shares. Price—$75 per
exceeding 12,000 shares of
Rights will expire on April 5.
by amendment.
Proceeds—For
Underwriter
Merrill Lynch,
(3/15)
r
Cincinnati, O.
\
Power Co.
Vegas, Nev. Underwriters—William R. Staats & ..Co.,
Los Angeles, Calif.; Hornblower & Weeks, New York;
Underwriter—Stanley Cooper Co., Inc.,
for
St., New
filed
Proceeds
ment.
Price—Par for debentures and $100 per
Proceeds
To purchase real estate or
the
g ven
21
Office—70 Pine
75,000 shares of cumulative convertible
preferred stock (par $20). Price—To be filed by amend¬
interest therein.
not
unsubscribed stock.
Price—Tp
basis
held.* Employees
•jright to subscribe for
any
the
.
Underwriter—None.
Southern Nevada
Cincinnati, Ohio
$1,000,000 of 5%% cumulative convertible
(no par),.
5, N. Y.
Feb.
share for stock.
,
on
8,000 shares of Hamilton stock.
debentures due Jan. 1, 1980 and 25,000 shares of common
Oklahoma Gas & Electric Co. (3/18)
iFeb. 23 filed 331,643 shares of common stock (par $10)
to be offered for subscription
by common stockholders
/
Co.
(letter of notification) 28,000 shares of common
(par 10 cents)' being offered in exchange for
York
Ranger Lake Uranium Mines, Ltd., Toronto,
March 8 filed
Service
offer shall terminate when offer shall have been accept¬
ed by Hamilton stockholders owning not in excess of
shares held.
Any shares remaining unsub¬
days Kilowing date of mailing of warrants
disposed of through the company's executive
■<-'if Revere Realty,
.
Public
Hamilton Gas Corp. capital stock (par $1) on the basis
of 3V2 Southeastern shares for each Hamilton share. This
share for
30
be
Southeastern
stock
(regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony
Securities Corp., New York.
per share*-Pro¬
exploration, and development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co.,
both of Spokane,. Wash
16
new
com¬
cent).. Price
Jan. 24
Canada
(par two cents).^ Price—10 cents
March
one
one
^
Dec. 30
Mining Co., Inc., Almira, Wash.
notification) 500,000 shares of common
ceeds—For
of record
~
—
Belle
Sept. 8 (letter of
the basis of
on
(par
.
"
committee. Price—$3.75 per share. Proceeds—To expand
business. Underwriter—None.
(no par), of which 120,000 shares are to be offered in
.Canada and 155,000 shares in the United States. Price—
55 cents per share.
pro¬
three
scribed
New
u
1, 1955
Salt
Co.,
—
10 cents per share.
Offices — 506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,"
Kansas City, Mo. Underwriter—E. R. Bell & Co., Kansas
City, Mo.
■
Pyramid Life Insurance Co., Charlotte, N. C.
Feb. 15 filed 250,000 shares of capital stock (par $1) to
be offered for subscription by common stockholders of
-.share).
owner to be amended.
Proceeds—For development
Proceeds—For mining expenses.
* Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Offering — Temporarily
delayed.
held;
stock
mon
stock
gram.
five shares
share.
Solomon Uranium & Oil Corp., Inc.
7 (letter of notification) 2,000,000 shares of
Price—To be supplied by amendment. Pro¬
ceeds—To reduce bank loans and for construction
.
per
Oct.
*
England Telephone & Telegraph Co.
cents
city.
same
\
'
'
;
and exploration expenses. Office—Newhouse Hotel,
Lake City, Utah. Underwriter — Van Blerkom &
Louis Tiggs, President,
.
tendered.
are
underwriter and prior property
Office—139 No. Virginia
T.
exchange under terms of this offer provided
450,000 shares
Price—10
Public Service Electric & Gas Co.
;Feb. 4 fiieu 511,205 shares of
capital stock being offered
-for subscription by stockholders of record
March 1, 1955
lat the
address.
same
one new share for each two shares
held. Price
—-To be supplied by amendment. Proceeds—For
invest¬
ment. Underwriter—None.
w
;
—
.
360,000 shares- of capital stock (par $1)
for subscription by stockholders on the
.basis of
New
Philadelphia, Pa.
A Popular Drug Stores, Inc.
Feb. 23 (letter of notification) 200,000 shares of common
/stock. Price—At par ($1 per share). Proceeds—To es¬
For
both
^Puerto Rico
(letter of notification) 75,000 shares of common
$1). Priee—$4 per share. Proceeds—For ma¬
chinery and working capital. Underwriter—Philadelphia
to be
^
Sinclair stock for each eight shares of Venezuelan stock
'"
-
,
Venezuelan Petroleum Co. in the ratio of five shares of
City, Utah.
if Sundstrand Machine Tool Co. (3/23)
March 4 filed 108,885 additional shares of common stock
(par $5) to be offered to common stockholders on the
basis of
To be
one
new
share for each five shares held.
Price—
Proceeds—For expansion
and general corporate purposes.
Underwriters—Merrill
Lynch, Pierce, Fenner & Beane, New York; Bacon,
Whipple & Co., Chicago, 111.; Dean Witter & Co., San
Francisco, Calif.
Continued, on page 60
supplied by amendment.
The Commercial and Financial Chronicle
r
Proceeds—For
Racing Association, Inc. (Fla.)
of 6% convertible sinking fund
debentures due 1966 and 70,000 shares of common stock
(par 10 cents). Price — 100% and accrued interest for
debentures and $2 per share for stock.
Proceeds—To
repay bank loans, for new construction and for working
18
ments
exploration and development costs. Of¬
Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.
Sunshine Park
Nov.
$38
fice—906 Walker Bank Bldg.,
59
Continued ]rom page
Uranium, Inc., Salt Lake City, Utah.
Oct. 5 (letter of notification) 15,000,000 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Proceeds
For exploration and
development costs.
Uintah
filed $700,000
—
Judge Bldg., Salt Lake City, Utah.
writer—James E. Reed Co., same city.
Underwriter—Gulf-Atlantic, Inc., Tampa, Fla.
Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
Price—At par (one cent per
stock.
mon
Inc., Hollywood, Calif.
shares of preferred stock (par $50)
and 100,000 shares of common stock
(par $10) to be
offered
in units of three
preferred and 10 common
shares. Price—$400 per unit. Proceeds—For purchase of
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, but sales
share). Proceeds
development and exploration costs. Office—Medical Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
—For
Brokers, Inc., the same city.
Uranium Corp.,
Swedes
Salt Lake City, Utah
filed 30,000
1
will be made through agents.
(letter of notification) 2,500,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For exploration and development expenses.
Office—Newhouse Bldg., Salt Lake City, Utah.
Under¬
writer—Guss & Mednick Co., same city.
1,188,000 shares of com¬
mon stock
(par one cent). Price—25 cents per share.
Proceeds—For mining expenses. Office—701 Ernest and
Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
Cranmer Building, Denver 2, Colo.
Underwriter—Car¬
roll, Kirchner & Jaquith, Inc., same city.
Jan.
5
stock
mon
Price—10 cents per share.
exploration and development of proper¬
Underwriter
Texas.
Lake
—
three
16th
.
of
Price—Tc
be supplied by amendment.
Proceeds—For exploration
and drilling, and payment of bank loans and advances
Underwriter—Vickers Brothers, New York; on a "best ef¬
forts" basis.
each
two
Corp., Sequin, Texas
shares held;
public.
per
Las
Proceeds
—
San
To
pay
Funk
&
1, 1962 to Aug. 1,
Thunderbolt Uranium Corp., Salt
tal stock.
For
City, Utah.
same
,c^eds—For
Center, Denver 2,
,son,
-
•
Colo.
W.
1
Uranium
(letter of notification)
supplied
Pro-
loan
shares of
High
son
—358 S. 3rd St.
Springfield,
Mass.
purchase
to
124,667
i
one
for
in units of
warrant
each
for
three
share of
one
the
purchase
shares
held
about April 6.
on or
Proceeds
amendment.
held
note
insurance
by
—
Price
To
(letter of notification) 500,000 shares of common
stock (par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,
648, Moab, Utah. Underwriter—Security Ura¬
Service, K. O. V. O. Bldg., Provo, Utah.
P. O. Box
nium
Woman's
Income
Fund, Inc., Baltimore, Md. *
filed 500,000 shares of capital stock. Pric^—At
market.
Proceeds—For investment.
Underwriter—In¬
Jan. 28
come
President, Pierre A. DuVal,
its
of
Consensus Inc.
Woodland Oil & Gas Co.,
den
J.
Hotel.
Tyaga Associates, Inc.
Inc.
(letter of notification) 299,900
Dec. 21
shares of common
Price—$1 per share. Proceeds—
equipment, drilling expenses and working capital.
Office—42 Broadway, New. York, N. Y.
Underwriter—
stock
10 cents).
(par
E. M. North
—
Webber,
^
.
Mining Corp.
July 21 (letter of notification) 9,996,000 shares of com¬
mon
stock
(par one cent).
Price — Three cents pel
share. Proceeds—For exploration and development ex¬
Office—323
penses.
Utah.
Price—At par
(five cents
per
Teske,
d/b/a
Wallace
Wallace. Idaho,
Brokerage
Co.,
—
company's
for
Jack¬
...
!■
com¬
For
products, working capital
.
.
.
a
Wyoming Minerals Corp., Thermopoiis, Wyo.
of notification) 250,000 shares of common
per share.
Proceeds—To pay current
bills and purchase equipment and supplies. Underwriter
—H. P. Jesperson, 2111 Nicholas St., Omaha, Neb.
x
stock.
-
Price—$1
Wyoming Uranium Corp., Salt Lake City,
,
city.
Feb. 16 (letter
Pro¬
Samuels
City,
production^ development and , sale of
and other. corpo¬
rate purposes.
Office—5119 West Stiles St., Philadel¬
phia, Pa. Underwriter—Charles A. Taggart & Co.j same
city.
' *
-'
•
••
Proceeds
bank
share).
Salt Lake
bldg.,
Newhouse
Underwriter—P. G. Christopulos & Co., same
Wynn Pharmacal Corp.
Dec. 23 (letter of notification) 85,000 shares of .class B
common
stock (par 10 cents). Price—$2.50 per -share.
To be
and
Co., Inc., same address.
Uranium
World
one
ceeds—For expenses incident to mining operations. Ad¬
dress—P. O. Box 289, Wallace, Idaho. Underwriter—Al-
city.
the di¬
of DuVal's
Managers Inc., New York, which is under
rection
March
reduce
company,
capital.
Underwriter — Paine,
Curtis, Boston and New York.
stock.
.(>;•<'
Aurora, 111.
.
mon
-•
Mining Co., Moab, Utah.
Winfield
com¬
of
on
Vulcan-Uranium Mines, Inc., Wallace, Idaho
15 (letter of notification) 1,500,000 shares of
com¬
-
Jan. 20
(3/22)
(par $2.50)
additional
Oct.
East, Salt Lake City, Utah. Underwriter
same
&
/
;
Mining Co. (3/15) >
Feb. 4 filed 3,000,000 shares of common stock (par 33%
cents). Price—$1 per share. Proceeds—To repay loans
and advances; for capital acquisitions; and for expendi¬
tures and working capital. Office — Dove Creek, Colo.
Underwriters—Joseph McManus & Co., New York; and
A. P. Kibbe & Co., Salt Lake City, Utah.
■
-
working
Wil-
mon stock.
Price—At par (10 cents per share). Pro.cseds—For exploration and development costs. Office
—Western Securities Corp.,
and.
by
and
-
White Canyon
stock, to be offered for subscription
share
21; rights to expire
com-
Corp.
2,990,000
stock
increas¬
Hills Inn,
Schwanz & Co., Inc.,
-
1717 East Colfax Ave., Denver, Colo.
Trans-Continental
Oct.
Underwriter—Robert
■
by common stockholders
mon
Price—At par (one cent per share).
mining expenses. Office—1122 Mile
Co.,
warrants
common
additional
authorized issue of 100,000 shares of
Fort Worth,' -Texas.
..
■)
Jan. 31 filed 200,000 shares of capital stock (no. par) *
Price—$5 per share.
Proceeds—Together with " other
funds, to construct, furnish and equip-hotel to be built
between Dallas and Fort Worth, Texas. ^ Underwriter—
mining expenses.
Office—280 Aultman
Underwriter—Bristol Securities Co., Fall
Norman
of
an
For
10-year
shares
city.
stock.
Van
and
Underwriter—Melvin G. Flegal & Co.,
Tip Top Uranium & Oil, Inc., Denver, Colo.
,Feb. 1 (letter of notification) 30,000,000 shares of
;inon
Underwriter
Idaho.
Supply
preferred stock and $5,000,000 erf bonds and on
Western
Feb. 28 filed 124,667 shares of common stock
Proceeds
Office—2507 South State St., Salt
expenses.
Lake
;
•
Lake City, Utah
Price—At par (one cent per share).
mining
posal to create
Corp., Ely, Nev.
(letter of notification) 2,000,000 shares of com¬
(par one cent). Price — 15 cents per share.
ceeds—For investment.
(letter of notification) 22,000,000 shares of capi¬
Auto
—Stockholders will vote March 15 on 'approving a pro¬
A Value Line Income Fund, Inc., New York
8 filed (by amendment) an additional 7,500,000
shares of capital stock (par $1). Price—At market. Pro¬
S:., Reno, Neb. Underwriter—Stock. Inc., Salt Lake City
Jan. 31
.
March
Office—206 N. Virginia
Pipe Line Co., Dallas, Tex.
Co.- (Mo.)
(3/22)
March 2 filed 50,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To finance purchase of certain properties to be
acquired from Gamble-Skogmo, Inc. Underwriter—Mer¬
rill Lynch, Pierce, Fenner & Beane, New York. Meeting'
A Western
River, Mass.
(letter of notification) 1,800,000 shares of com¬
stock (par 10 cents).
Price — 15 cents per share.
both of New
20, 1952 filed 1,125,000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.
•
:
stock
St., Ely, Nev.
Co. and Union Securities Corp.,
Offering—Postponed indefinitely.
&
West Coast
Uranium
Proceeds—For
Thunderbird Uranium Co., Reno, Nev.
mining activities.
Weld
York.
Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent). Price — Three cents per share.
Proceeds—For exploration and development expenses.
Office—1818 Beverly Way, Las Vegas, Nev. Underwriter
—First Western Securities, same city.
17
private sales of
of common stock and
$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline. Underwriters — White,
Utah Uranium Corp., Las Vegas,
mon
Proceeds—From sale of units and 1,125,000
additional shares
exploration and development expenses.
Office—430 Judge Bldg., Salt Lake City, Utah.
Under¬
writer—Mid-Continent Securities. Inc., same city.
.Aug. 3
Proceeds—For
(par 50 cents) to be offered in units of one $50 deben¬
and one share of stock. Price—To be supplied by
ture
amendment.
(letter of notification) 3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
Jan.
1952 filed $29,000,000 12-year 6% debentures
15, 1964, and 580,000 shares of common stock
20,
due Dec.
Proceeds—For
near
Line Co., Dallas, Tex.
West Coast Pipe
Nov.
tal stock
Proceds—To construct and operate a manu¬
three weeks.
Wenga Copper Mines, Inc., N. Y.
Nov.
18
(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents per share.
Pro¬
ceeds—For general corporate purposes.
UnderwriterWillis E. Burnside & Co., New York.
Utah Apex Uranium Co.
Orange, Tex., for the purpose of
manufacturing insulation building products.
Under¬
writer—Emerson Cook Co., Palm Beach, Fla.
mon
or
2,500,000 shares.
>
Address—Box 709, Wallace,
Vada
of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
corporate purposes. Underwriter—James Anthony
Securities Corp., New York. Offering—Expected in two
eral
r
for
Co.,
Ltd., Toronto, Canada
(regulation "D") 300,000 shares
ing authorized common stock from-1,335,000 shares to
16
18
Pension Fund.
Mines,
Uranium
Webster
Inc., Salt Lake City, Utah
Oct. 7 (letter of notification) 6,000,000 shares of com^mon stock (par one cent).
Price—Five cents per share
Proceeds—For exploration and development costs.
Of¬
fice—420 Felt Building, Salt Lake City, Utah.
Under¬
writer—Western Securities Corp., Las Vegas, Nev.
Oct.
of participation in the company's
Savings and Profit Sharing
Utaco Uranium,
.
Insurance Co.
National
Ar Washington
March 7 filed $750,000
—Wallace Brokerage Co., same city.
Price—To be supplied by
1966.
la-
stock.
claims.
due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
facturing plant
—
(letter of notification) 1,000,000 shares of capi¬
Price—At par (five cents per share).
Pro¬
ceeds—For core drilling program upon two groups of
Antonio, Tex.
amendment.
Exploration & Drilling Corp.
Vegas,
Nov.
Texboard, Inc., Dallas, Texas
Jan. 17 filed $1,500,000 of 6% series A debentures
Feb.
F.
Co., Dallas, Texas.
Wallace, Idaho
14, 1955.
outstanding debts and
Underwriter—Creton H.
J.
Uranium Discovery & Development Co.,
share to stockholders; $3.15 per share to
working capital.
—
Nev.
Underwriter—Robert B. Fisher
vestments, 510 South Fifth St., Las Vegas, Nev.
by stock¬
rights to expire March
unit.
per
At par ($1 per share). Proceeds — Foi
Boy (drilling equipment which company
rents out), and working capital.
Office—c/o Edwin J.
Dotson, attorney-at-Iaw, Simon Bldg., 230 Fremont St.,
holders of record March 4 on basis of one new share for
Price—$2.75
Price—$11
Underwriter
capital.
Price
(letter of notification) 41,600 shares of common
being offered for subscription
working
(letter of notification) 300,000 shares of common
tal
for account of certain selling stockholders.
(par $1)
&
For
cost of Driller
filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered foi
subscription by common stockholders at the rate of ont
new share for each 4%
shares held;.and 70,000 shares
stock
—
stock.
.
June 21
Power
class of stock.
share of each
one
Corp.,
Oct. 4
Texas International Sulphur Co.
16
Finance
& Co., Wash¬
Nov.
(letter of notification)
Universal Petroleum
held; rights to expire March 14, 1955.
Price—$2.35 per share to stockholders; $2.70 per share
to public. Proceeds—To pay interest on bonds and de¬
bentures, taxes, bank
loan and insurance premium.
Underwriter—Creston H. Funk & Co., San Antonio, Tex.
Texas
16
Perkins
for each five shares
•
offer of rescission to 37 shareholders at
per
Street, Denver 2, Colo.
Proceeds
16
Feb.
cent), of which 2,133,329 shares are
Dallas, Texas
27,U0u shares of 70-cent
cumulative preferred stock (no par) and 27,000 shares
of common stock (par 15 cents) to be offered in units
(letter of notification) 56,000 shares of common
stock (par $1) being offered for subscription by stock¬
holders of record March 4 on basis of eight new shares
are
one
an
Universal
Temple Mountain Uranium Co.
(letter of notification) 3,500,000 shares of com¬
mon stock
(par 2% cents). Price — 3 cents per share.
Proceeds—For exploration and development expenses.
Office—39 Exchange Place, Salt Lake City, Utah. Un¬
derwriter—Walter Sondrup, same city.
,
by
cents
Feb.
Oct. 7
Hydro Electric Corp.
(par
share; and 2,000,000 shares are to be
publicly offered at 10 cents per share. Proceeds—For
mining expenses. Underwriter—John L. Donahue, 430
exploration and development expenses.
Office — 317
Railway Exchange Building, Denver, Colo. Underwrite*
—E. I. Shelley Co., Denver, Colo.
Texas
stock
covered
Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of com¬
mon
stock.
Price—10 cents per share.
Proceeds—Foi
•
26
mon
America Building, Dallas,
Western Securities Corp., Salt
City, Utah.
Feb.
Corp., Denver, Colo.
(letter of notification) 4,133,329 shares of com¬
Jan.
Life of
Office —1406
ties.
Corp.
share. Proceeds—For additions and improve¬
property. Underwriters — The First Boston
,
(letter of notification)
United Uranium
(par five cents).
Proceeds—For
7
Uranium
Canadian
United
Feb.
to
Dec. 30
it Union Club,
March
per
Corp., New York; and Johnston, Lemon
ington, D. C.
-
Under¬
Office—424
capital.
-
Thursday, March 10, 1954
...
(1138)
60
Utah
■
Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
-o? rescission and 15,000 shares are offered
ir Waltkam Watch Co.
Feb. 21 (letter of notification) 25,000 shares of common
stock (par $1).
Price—At market. Proceeds—To selling
.—At
stockholders.
Underwriter—James E. Reed Co., Salt Lake
March 3 (letter of notification) 30,600 shares of common
stock, of which
15,600 shares
are
offered through offer
publicly. Price
($1 per share). Proceeds—For working capital.
Business—To distribute and promote a strictly limited
'.line of automotive products. Office—92 E. Jericho Turn¬
par
•
Underwriters—Bache & Co., Boston, Mass.;
and Chas. W. Scranton &
,
pike, Mineola, N. Y.
Underwriter—None.
C ~
Ucoio Uranium Co.* Salt Lake City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com
E.on stock (par one cent).
Price — 10 cents per share.
•
Washington
Gas
Co., New Haven, Conn.
.
Light Co.
.Feb. 17.filed
130,041 shares of common stock (no par)
being offered for subscription by common stockholders
of record March 7, at
the rate of one new share for eaeh
eight shares held; rights to expire on March 23. Price—
Proceeds—For
exploration
and development expensea.
City, Utah.
Zapata Off-Shore Co., Houston, Texas
14 filed 315,000 shares of common stock
Feb.
(par 50
Price—To be supplied by amendment-(expected
at $5.50 per share). Proceeds—For equipment and work¬
ing capital. Underwriter—Underwood, Neuhaus & Co.r
Houston, Texas.
cents.)
.
-
Number 5410...The Commercial and Financial Chronicle
Volume 181
Zenith Uranium & Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,
Boston, Mass.
Colonial
Feb. 24 it
would
17
(par
•
Alabama
Dec.
30
it
Power
was
Co.
company
capital and
plans to issue and
first mortgage bonds due 1985. Proceeds
—To repay bank loans and_ for construction program.
\
Underwriter—To ..be determined by competitive bidding.
Coi^a^&rek^SfcConjointly);
The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.;
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly).
Bids—Expected to be received up to 11 a..m. (EST) on
May 24. Registration—Scheduled for April 27.
in connection with the
acquisition of Uranium Mines of
Public offering of $2,000,000 bondi
America, Inc. stock.
expected early in
Underwriter
1955.
Teliier
—
&
Co.,
a new
convertible
debentures at their annual meeting to
April 20.
When issued, each stockholder
would receive rights to purchase the debentures in pro¬
portion to his holdings of stock (probably on the basis
of $100 of debentures for each eight shares of stock
held'-on
Underwriter—None.
stockholders
debentures
(5/2)
holders
to
increase
authorized
capital stock from
Co., Savannah,/Ga. ^..T
have
28
been
additional
one
expire
given
shares
of
record
the
right to subscribe for
capital stock (par $12.50)
of
share for
new
March 28.
on
stockholders
each
six shares
Price—$40
per
—To
Feb.
300,000
on
Feb. 10 company received ICC
exemption from competi¬
tive bidding of up to $345,000,000 of new securities: Pro¬
ceeds—For refunding. Underwriter—Feb. 16, Howard E.
Simpson, President, announced Glore, Forgan. & Co.,
Halsey,] Stuart & Co. Inc. and Alex. Brown & Sons have
been engaged to continue studies and formulate plans
-looking towards a simplification of the railroad's debt
structure and
a
held; rights
share.
Proceeds
Underwriter—None.
stockholder, has offered
purchase
unsubscribed shares.
any
Florida
it
program.' Underwriter—To be determined by
competitive bidding. Probable bidders; Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Lehman Brothers and Blyth & Co., Inc.
(jointly)'; Carl M. Loeb, Rhoades & Co.; Union Securi¬
Corp.
ties
Offering
—
Expected in
Feb.
28
offer
200,000 shares of its
it
announced
was
company
stock
common
Texas only.
Price—$5
ing capital.
to
publicly
to residents
of
Underwriter—None.
per
share.
Proceeds—For work¬
★ General Controls Co., Glendale, Calif.
Central
Maine
Power Co.
March 8 it
reported stockholders will vote March 16
was
W. F. Wyman, President, stated that company
plans to issue and sell some additional common stock,
stock from
par $10 (probably to stockholders). Proceeds—For conr
structioq program. Underwriter—May be determined by
competitive bidding. Probable bidders: The First Boston
Corp. and Coffin
& Burr, Inc.
(jointly); Harriman
of the Controls and Instrument Division of Perfex
Corp.
Underwriters—Last preferred stock offering was han¬
dled by Wagenseller & Durst,
Ripley & Co. Inc.; Blyth & Co., Inc. and Kidder, Pea¬
body & Co. (jointly).
Chesapeake & Ohio Ry.
Sept, 29 it was reported company plans to issue and
sell $40,000,000 of new bonds. Proceeds—To refund ita
outstanding $37,851,000 3%% bonds and $2,441,000 4%
bonds. Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.
Chicago Corp.
Feb. 14 it
common
share of
announced company plans to offer to its
stockholders the right to subscribe for one new
stock for each five shares held.
Stock¬
holders will vote April 29 on increasing authorized com¬
mon
stock from 4,000,000 to 5,000,000 shares.
Price—
To be determined shortly before offering is made. Pro¬
ceeds—For new construction and general corporate pur¬
poses.11 Underwriter
—
May
be
Glore,
Forgan
&
than $65,000,000 of 40-year income debentures. Proceeds
—To-redeem its
outstanding preferred stock (about 620,—
The First Boston Corp.;
Blyth & Co., Inc.; Glore, Forgan & Co.; and the Union
Securities Corp. Exemption from the competitive bid¬
ding rule was received on Feb. 17. If all holders of
000
shares).
Underwriters
preferred stock convert their shares into
a
share-for-share
basis
there
will
be
common
no
new
shares to
defray in part the purchase
16
Finance
it
Corp., Chicago, III.
announced
was
be effected
in
the
coming
With this thought in
year.
mind the directors have proposed an amendment to the
charter to create additional shares of preferred
stock,
without par value.
Underwriter—Paine, Webber, Jack¬
son & Curtis,
Boston, Mass.
General
Dec.
Telephone Co. of California
15
sion
for
company applied to California P. U. Commis¬
authority to issue and sell 200,000 shares of
preferred stock (par $20). Proceeds—To re^ay
bank loans and for expansion program. UnderwritersMay be Paine, Webber, Jackson & Curtis; Stone & Web¬
4%%
ster Securities
Corp.; and Mitchum, Jones & Templeton.
Georgia Power Co. (5/10)
sell
30
it
was
announced
plans to issue and
company
$12,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To
gram.
retire
debenture
sale.
bank
loans
Underwriter—To
be
and
for
construction
pro¬
determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Lehman Brothers; Union Securi¬
ties
Corp. and Equitable Securities Corp. (jointly);
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. & Hutzler
Savannah, Ga.
March 8 it was reported stockholders will vote April 12
on approving a proposed
offering for a period of 30 days
of 200,000 shares of capital stock (par $10) to stock¬
holders on the basis of two new, shares for each seven
shares
held.
Price—$30
per
share.
Proceeds—To
in¬
capital and surplus.
Collins
tFeb. 21 it
Radio
Co.
Fremont,
Mich.
*■»
March
7
it was announced contemplates a proposed
offering to stockholders of approximately 100,000 shares
common
stock
(par $10) on the basis of one new
of
share for each 20 shares held
cent
stock
split of
shares owned
one
(after giving effect to
additional
share
for
each
re¬
two
Feb. 28, 1955). Price—To be named
later.
Proceeds
To finance expansion of company's
operations. Meeting—Stockholders will vote March 31
as
of
on
increasing authorized
ent 2,000,000 shares
A. G. Becker & Co.,
$100). Underwriter—Kidder, Peabody & Co., New York.
ed to be made in April.
tures
an¬
company/will have .another stock issue
future.
•.
-
Proceeds—For
announced stockholders will vote
was
due
holders
May 10
Under¬
1965, first to preferred and common stock¬
rate of $25 principal amount of debentures
at
for each three
shares held.
ing—Expected in May
Hartford
Special
Feb. 24 stockholders
stock
holders.
1
to
vote
probably
to
increase the
62,500 shares
to
be
com¬
(par $20), v
offered
to
stock¬
Underwriter—None.
it
and sell
share.
Offer¬
Machinery Co.
were
stock
Horseshoe Bend
Feb.
Underwriter—None.
June, 1955.
or
by 25,000 shares to
additional
announced
was
'
/
Uranium, Inc.
150,000 shares of
that
company plans to issue
stock. Price—$2 per
common
Proceeds—For exploration and development ex¬
Underwriters—James Anthony Securities
Corp;,
N. Y.;
penses.
York; Lawrence A. Hays Co., Rochester,
and Ned J. Bowman Co., Salt Lake
City, Utah.
-
Illinois Central
Telephone Co.
;
was reported
company plans to sell in Illinois;
only, 15,000 shares of 5%% cumulative preferred stock
(par $50).: Underwriter—Central Republic Co.
(Inc.),'
Chicago, 111.
Jan. 26 it
•
►
-
.
V
„
Industrial Raw
-
Feb. 21 it
common
was
Materials
,
M
.
Corp., New York
reported that offering of 125,000 shares of
is soon expected.
Proceeds—To selling
Office—575 Madison Ave., New York
22,
stock
Underwriters—Milton D. Blauner & Co.; Baruch
Brothers & Co.; and Hallo
well, Sulzberger & Co.
Iowa Public Service Co.
Feb. 28 directors authorized officers to sell
270,000 addi*
tional shares of common stock
(par $5) to common stock¬
holders on a pro rata basis. Price—To be
named later.
Proceeds — For construction
program.
Underwriter—-
None.
Offering—No definite date has been set.
Jersey Central Power & Light Co.
r ;
Feb. 21 it was reported
company plans to issue and sell
$12,000,000 first mortgage bonds. Proceeds'
To
repay
—
bank
loans
and for
new
construction.
Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated; Leh¬
man
Brothers; Union Securities Corp., Salomon Bros. &
and Merrill Lynch,
Pierce, Fenner & Beane
(jointly); White, Weld & Co.; Kidder, Peabody & Co.
Offering—Expected before the end of June.
'■*
.
Jersey Central Power & Light Co.
Feb. 21 it
reported company plans to sell
$5,000,000
Proceeds—For construction
was
of preferred stock.
program.
Underwriter—To be determined by
competitive bidding.
Probable bidders: The First Boston
Corp.; Merrill
Lynch,
Pierce, Fenner & Beane and White, Weld & Co.
(joint¬
ly); Glore, Forgan & Co. Offering — Expected before
July 1.
Keystone Wholesale Hardware Co.,
Atlanta, Ga.
was stated that the
company plans at a later
Jan. 27 it
date
to
offer
additional
shares for sale nationally. An
offering of 16,666 shares of common stock is
presently
being made to residents of Georgia only at
$3 per share.
Office—517 Stephens St.,
S.W., Atlanta, Ga.
Maine Central RR.
Feb.
19
the company
$1,700,000 of
new
for sale without
asked ICC for authority to issue
23-year first mortgage collateral bonds
competitive bidding. Proceeds—To re¬
deem
approximately $1,400,000 of 5% first mortgage
divisional bonds which were sold in 1952
through Blair
& Co.
Incorporated, New York, and Coffin & Burr, Inc.,
Boston, Mass.
Probable
reported company plans to issue and sell
about 100,000 shares of convertible preferred stock (par
was
**
Vice-President,
Feb.
—
crease
some
was announced stockholders will
vote March
issuance and sale of $1,500,000 convertible deben¬
(jointly); Harriman Ripley
Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on May 10. Registrations-Scheduled for April 13.
& Co.
,
it Citizens & Southern National Bank,
;
do
may
14 it
on
it: Gerber Products Co.,
stock
company
Hutzler
contemplates that
company
additional financing in the form of additional bank
loans,
subordinated debt and/or additional preferred stock will
.
Chicago, Rock Island & Pacific RR. (3/24)
Jan. 11, J. D. Farrington, President, announced that the
directors have authorized the issue and sale of not more
on
General
Feb.
Dec.
•
plan to increase the authorized preferred
60,553 shares to 260,553 shares. It is planned
the
that
Hartford Gas Co.
a
Inc., and Lester, Ryons &
Co., both of Los Angeles, Calif.
Co.,
Chicago., 111.
issiie
to
was
common
approving
on
reported
Corp.
Alberty, Executive
L.
N. Y.
plans
June.
Dec, 31,
D.
stockholders.
Breweries, Inc.,
Galveston, Texas
was
Co,, Inc., Bridgeport, Conn.
&
Galveston-Houston
reported company plans to offer 22,688
additional shares of common stock (no par) to its stock¬
holders on a l-for-8 basis. Underwriter—Smith, Ramsay
&
Power
struction
reduction in over-all interest costs.
was
near
New
Light Co.
was reported
company plans in April to offer
publicly 305,000 additional shares of common stock (no
par). Price—To be named later. Proceeds—For con¬
^ Bridgeport Hydraulic Co.
March 7
would
—
increasing the debt authority to $20,000,000.
writer—A. G. Becker & Co.
(Inc.), Chicago, 111.
the
Feb. 28 it
Baltimore & Ohio RR.
which
expansion. Under¬
writer—Eisele & King, Libaire, Stoiit &
Co., New York,
handled previous financing.
"T - r; •
/
the
announced
was
•
Space,
the
in
March
it
it
17,
mon
7
3
nounced that the
★ First Western Bank & Trust Co., San Francisco.
to
common stock and 359,000 shares
Price—^Ahout $11 per common share
and $10 preferred share. Underwriter—Johnson,
Lane,
shares
Gulf Cities Gas
Jan.
16
1,000,000 shares to 3,000,000 shares in anticipation of
expansion of the company's activities.
Underwriter—
Previous financing handled by Greene &
Co., New York.
to
sell
outstanding)
for
★ Given Manufacturing Co.
March
Feb.
Helicopters, Inc.
Waters, President, announced stock¬
voted
about [550,000 shares of
and
shares
tp
$2) from
to 750,000
acquisition of any business, increased
working capital, plant expansion or exchange of shares
was
underwriting.
of preferred stock.
offer
may
on
Previous offer of convertible
made to stockholders without
increase capital and surplus.
Tranamerica Corp., the majority
company
(360,000
(par
on
announced
was
May 2 will
authorizing about $60,000,000 of convertible de¬
basis of
Augusta Newspapers, Inc., Augusta, Qa.
available
Feb. 25 it
Feb. 17 Donald S. B.
issue of not to exceed $650,000,-
reported
it
Doman
American Telephone & Telegraph Co.
Feb. 16 directors voted to recommend to stockholders
shares
shares, in order to have additional
be
proposal
a
stock
it Hammermill Paper Co.
Jersey City, NVJ.
on
was
new
.
bentures.
Manager—Kidder, Peabody & Co., New York.
400,000
.approved
common
in other companies.
Edison Co.
Consolidated Uranium Mines, Inc.
July 23 stockholders authorized the issuance and sale
of not to exceed $6,000,000 convertible debenture bondi
vote
it
in¬
Detroit Edison Co.
136,744 shares of 5 y2% cumulative preferred
stock, series A (par $100) on the basis of ten shares of
6% stock for each 5%% preferred share held.
Dealer-
28
two
about
cost
standing
Feb.
each
stockholders
authorized
financing in connection with acquisition of Gasinator
Mfg. Co., Cleveland, O. Underwriter—Straus, Blosser &
McDowell, Chicago, 111.
will
21
held).
for
Proceeds—To
the
the
financing.
construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
For last equity financing were The First Boston
Corp.
and Glore, Forgan & Co.
~
Proceeds—For
Jan.
be
share
new
share.
15,
increase
Underwriter
Previous financing
handled by Hornblower & Weeks and associates.
Feb. 10 company offered 1,367,440 shares of 6% convert¬
ible preferred stock (par $10) in exchange for the out¬
000
one
per
Feb.
be
Alleghany Corp.
that they authorize
of
surplus.
Commonwealth
sell $15,000,000
ties
rate
Price—$50
Jan. 24, Willis Gale, Chairman, announced it should
Fall before the company undertakes its next
(5/24)
announced
the
at
61
Giddings & Lewis Machine Tool Co.
25
the
right to subscribe on or before
for 20,000 additional shares of capital stock
held.
crease
Prospective Offerings
Co., New York
announced stockholders of record Feb.
offered
$25)
shares
Trust
was
be
March
(1189)
to
common
stock
from
the pres¬
3,500,000 shares.-'Underwriter—
Inc., Chicago, 111. Offering—Expect¬
Maine
not
Central
RR.
14, E. Spencer Miller, President, said
company has
given up the idea of refunding the $17,000,000 5y8%
first
mortgage
and
bidders
for
collateral
new
trust
bonds
bonds
may
due
1978.
include
Halsey,
Inc.; Kidder, Peabody & Co.; W. C. Langley
& Co.; Coffin
& Burr, Inc.; The First Boston
Corp.;
Merrill Lynch,
Pierce, Fenner & Beane; Blyth & Co.,
Inc.; Glore, Forgan & Co.
Stuart & Co.
Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer
500,000 shares (par five
cents) to the motorist and general
public shortly after completion of the current
offering
of 100,000 shares to service station
owners and operators.
Office—Room 717, 141 Broadway. New York
6, N. Y.
*
Continued
on
page
62
62
The Commercial and Financial Chronicle
(1190)
Continued from page
Feb. 21 it
'
V
Pacific RR.
Missouri
Bids
Pennsylvania
61
*%
"* "
ceeds—For
1956-1970.
determined
equipment
$3,765,000
trust
certificates
due
Halsey, Stuart & Co. Inc.;
bidders:
Probable
Service
Public
Missouri
Co.
*
14 it was reported
was
proposal to increase the authorized jyrait of
indebtedness from $3,000,000 to $20,000,000. Proceeds—
For expansion program.. Underwriter — Merrill Lynch,
Pierce, Fenper~& Beane, New York, handled preferredstock financing in 1942.
vote
.on
a
"New
Feb.
Public
Orleans
it
4
announced
was
Service
Inc.
that company plans this year
bonds due 1985. Under¬
writer—To be determined by competitive bidding. Prob¬
issue
to
first
some
mortgage
Halsey, Stuart & Co. Inc.; White, Weld &
able bidders:
& Co. Incorporated; The First Boston Corp.;
Securities Corp. and Union Securities Corp*
Co.; Blair
Equitable
(jointly);
(jointly);
'
Boston
Kuhn, Loeb & Co. and A. C. Allyn & Co, Inc.
Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers. **
★ New York, Chicago & St. J-ouis RR. (5/10)
Bids are expected to be received by the company on'
May 10 for the purchase from it of $4,080,000 equipment
trust certificates.
Probable bidders: Halsey, Stuart &
Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Blair & Co. Incorporated,
f
York Telephone
Co.
Jan. 17, Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds,
to be determined
by competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
North
Dec.
17
Co.
Gas
Penn
it
announced
420,000 shares of common
be offered to public. Price—
To be named later. Proceeds—To The Post Publishing
Co., publisher of The Boston Post. Underwriter—East¬
stock
was
will
(par $5)
soon
Nitro-Chemicals,
★ Northwest
Ltd.,
Alberta,
Can.
March 4 company plans to issue and sell publicly deben¬
tures and common stock to finance its proposed chemical
project. Underwriters-Eastman, Dillon & Co., New York.
Northwest
Feb. 7 it
in
Plastics,
future
near
stock, plus 8,316
shares reserved for conversion of outstanding debentures
which may soon be called for redemption. Underwriters
—May be Irving J. Rice & Co., St. Paul, Minn.; and M.
H.. Bishop & Co.,,Minneapolis, Minn.
NorWay
Feb.
3
it
(Kingdom of)
v/
'
Co.; Harriman Ripley & Co. Inc., Lazard Freres & Co.
and Smith, Barney & Co.
Northern
Jan.
Public
Service
(which
be done through sale of pre¬
stock). Underwriters—Probably
Central Republic Co. (Inc.), Blyth & Co., Inc.; and
Merrill Lynch, Pierce, Fenner & Beane.
money
ferred
and/or
Ohio
Feb.
of
24
Edison
it
may
common
Co.
(5/17)
reported
was
company plans issue and sale
$30,000,000 of first mortgage bonds due 1985. Under¬
writer— To
'be
determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; Glore, Forgan & Co., White, Weld & Co.
and Union Securities Corp.
(jointly); The First Boston
Corp. Bids—Expected to be received on May 17. Regis¬
tration—Scheduled for April 26.
Oklahoma
Feb. 23 it
was
Gas
&
Electric
be
Underwriter
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane and
White,
Weld & Co. (jointly); Lehman Brothers and
& Co., Inc. (jointly); The First Boston Corp.;
Kuhn, Loeb &, Co.; Harriman Ripley & Co. Inc. and
Blyth
Union Securities Corp.
Pan American
Feb. 3 it
reported company is considering offer late
$4,500,000 subordinated convertible deben¬
(first to stockholders). Underwriter—Kuhn, Loeb
was
in March
tures
&
Co.
York.
(jointly); Smith, Barney & Co...
Sulphur Co.
and
of
Carl
M.
Loeb, Rhoades & Co., both of New
Registration—Expected early in March.
Pennsylvania Electric Co.
Feb. 15 it
reported company plans to issue and sell
later this year
$9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new
construction.
was
Underwriter—To be determined by competitive
bidding,
probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Kuhn, Loeb &
Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman
Ripley & Co.,
Inc.
and
pre¬
Underwriter—Dillon, Read & Co., Inc., New
Corp.
.>
Belgrano, Chairman and President,' an¬
plans to offer publicly 1,346,800
shares of capital stock through an
underwriting group.
Offering—Planned for early in May./ Underwriters—£Blyth & Co4 Inc.; and Dean Witter Co.
? V
■'>
**•'
/ ^
Feb.
25
.
N.
F.
that company
nounced
'
r: '
'
*
•
*• ,•
£
Nov.
-
•
Tom
24
Feb.
28, it
was announced company plans to offer to its
stockholders the right to subscribe for 202.431
of convertible cumulative* preferred stock' (par
on
1-1'or
a
basis.
21
Stockholders
will
vote
done
Public
Service
Co.
of
Oklahoma
>
t
privately):
Feb. 21 it
publicly
Underwriter—White, Weld & Co.' and
i
* •
~
i
:
{"
r
-
^
-
was
purchase warrants (each $1,000 debenture to be accom¬
panied by 100 warrants). Underwriter—Straus,; Blosser
& McDowell, Chicago, 111.
Registration — Expected in
on
near
future.
of
*
Jan.
reported that company plans to issue and
sell 100,000 shares of new preferred stock*(par^$10Q)7
Underwriter—To be determined-by competitive bidding.
was
24
it
:/•
■
Union Electric Co.
-
a■*
reported company plans early registration
$1,500,000 12-year convertible debentures witty stock
Francisco.
Nov. 11 it
It is planned to Offer
Stone & Webster Securities Corp. —
of
financing on April 4. Price^$i05 per share.r Under¬
writer—May be Blyth & Co., Ine., New York and San
•
'
»April 4, $15/000,000 of preferred stock. About $50,-
Trav-Ler Radio Corp.
eomrrton
shares
■
000,000 of bonds will be sold later this year (may be
^
:
•_
for 1955 and replacement of. bank
borrowings made id 1954 wil require financing during
about
-
t■]'
Pipe Line Corp. H4/4) ' :
Preside,ru, announced mat the
P." Walker,
-1955 of about'099
Indiana, Inp.i.
,
t construction program
Corp.; Morgan Stanley & Co. and Drexel & Co.
(jointly); Kuhn, Loeb & Co. and Union Securities Corp.
(jointly); White, Weld & Co. Bids—Tentatively expect-' e
ed to be received on April 25.
Public Service Co. of
v
Transcontinental- Gas
Boston
reported
was
$30,000,000
•'
■
Missouri
expects to sell about
mortgage bonds late in 1955.
bank loans and for new construc¬
company
30-year first
Proceeds—To
repay
tion.
Underwriter
To be determined by competitive
Ripley-& Co. Inc. and
(jointly); Smith, Barney A -bidding. Probable bidders:-Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and Union Securities Corp. (jointly);
Co.; Kuhn. Loeb & Co.; Glore Forgan & Co. Offering—
The First Boston Corp.; Lehman Brothers and
Expected in May or June, 1955.
Bear,
Stearns & Co. (jointly); White, Weld & Co. and Shields
Radio Receptor Co., Inc.
& Co. (jointly).
:
Feb. 28 it was reported that a public offering is soon
United Gas Corp.
expected of about 250,000 shares of common stock, of
which 100,000 shares will be sold for account of com¬
Feb, 24, N. C.
McGowen, President, announced that
pany and 150,000 shares for selling stockholders. Under¬
corporation plans to raise $35,000,000 to $40,000,000 in
writer—Bache & Co., New York.
the first half of 1955
through the sale of additional com?-
Probable
Central
bidders:-Harriman
Co.
Republic
—
Inc.
~
,
Electric &
Savannah
23
it
of
Estate.
&
Power Co.
mon
(4/14)
common
and
company
stock
100,000
Feb. 28 it
California
'
"
Gas Co.
-
-
Regis¬
%"
!v>
«
reported company plans to issue'snd sell
of first mortgage
Application has
was
$40,000,000
been
•V
..
filed
with
California
P.,, U." Commission for
emption
from
last sale
of bonds were from
competitive
bidding,
v
Bids
ex¬
received
\ on
Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly);- Lehman Brothers.
-V
construction
,
tration—Planned for March 17.
■
Proceeds—For
-
United Gas Corp.
.•
Feb. 24,, N. C. McGowen,
Corp. and Stone
Webster Securities Corp., both of New York.
stocKnoioers.
to
oLcompany and of United Gas Pipe-Line Co.,
subsidiary. Underwriter—None.
'
i
*
a
(65,000 shares for ac¬
shares- for the Donner
Underwriters—The First Boston
siocK
program
reported public offering is planned of
was
165,000 shares of
count
*
'
4-
President, stated that
com¬
pany might be doing some debt
financing, with this
year's total financing program reaching.about
$50,000,*000 (including about $35,000,000 to
$40,000,000 of common
stockJ.^Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston
Corp.; .Morgan Stanley &
•Co.; White, Weld & Co. and Equitable Securities
Corp.
(jointly); Harriman Ripley & Co. Inc. and Goldman,
Sachs & Co.
(jointly),
v
,
.
Co.
Southern
Dec.
sell
it
30
to
stock
was
Vanadium Queen Uranium Co.
Feb. 21 it was reported
(11/9)
announced company plans to
Issue and
public 500,000 additional shares of common
the
(par $5). Proceeds—To
repay
bank loans and for
subsidiary companies.
by competitive bid¬
ding. Probable bidders: The First Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and
Wertheim & Co.
(jointly); Blyth & Co., Inc., Bear,
Stearns & Co. and Dean Witter & Co.
(jointly); Union
Securities Corp. and Equitable Securities Corp.
(jointly);
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea¬
body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled for Nov. 9. Registration—
be
determined
Not expected until Oct. 12.
annual instalments. Probable bidders:
Co. Inc.; Salomon Bros. & Hutzler.
Halsey,
it
reported
company
petitive bididng. Probable bidders: White, Weld & Co.
and Kidder, Peabody & Co. (jointly); Lehman Brothers;
Merrill
Lynch, Pierce, Fenner ■ & Beane and Union
Securities Corp. (jointly); W. C. Langley & Co.; Harri¬
Ripley & Co. Inc. Offering—Expected in April
May, 1955.
man
Storer
Feb. 7 it
or
1
was
announced company plans to
publicly offer
262,750 shares of common stock. Proceeds—To reduce
long-term debt and to redeem 15,000 shares of 7% pre¬
ferred stock (par $100). Underwriter—Reynolds &
Co.,
New York.
•
new
of
first
Underwriter
v
Power Co.
company
mortgage
—
To
be
(6/7)
plans to issue and sell
bonds
in
the
determined
fu¬
near
by
competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp.; Stone & Webster Securitie®
Corp.; Kuhn, Loeb & Co.: Salomon Bros. &
Hutzler;
White, Weld & Co. Bids—Expected June 7.
/^ Washington Steel Co., Washington, Pa.
1
it
was
announced stockholders will vote
April
approving an issue of 30,000 shares of cumulative
convertible preferred stock
(par $50).
Proceeds—For
expansion program and working capital. Underwriter—■
Probably Singer, Deane & Scribner, Pittsburgh, Pa.
•
on
West Texas
28
Utilities Co.
company
Proceeds
30-year
—
To
(4/5)
f
sought SEC authorization to issue
first mortgage bonds due in 1985.
be
used
to
,
retire
bank
loans
.
and
for
construction. Underwriter—To be determined
by
competitive bidding. Probable bidders;
Halsey, Stuart &
Co. Inc.; Blyth &
Co., Inc. and Salomon Bros. & Huteler*
new
Merrill
curities
Lynch, Pierce, Fenner & Beane; Equitable Se¬
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
and Lehman Brothers
The
on
First
(jointly): Kidder. Peabody & Co*
Corp. Bids—Expected to be received
Registration—Scheduled for March 10.
Boston
April 5.
Westpan Hydrocarbon Co.
11
it
(4/15)
was
reported Sinclair Oil Corp. will ask for
Westpan stock about April 19,
1955, if it has not been able to dispose of these holding*
bids for 384,861 shares of
before that date.
Underwriters-Union Securities Corp.,
New York, underwrote recent sale of Sinclair's
holdingi
of Colorado Interstate Gas Co.
White, Weld &
Co., New
12, George T. Naff, President, referred to the pos¬
sibility of some $85,000,000 in new financing when and
if the company's current application for the reconver¬
sion of the Little Big Inch pipeline and the construction
the
ture..
York,
Texas Eastern Transmission Corp.
Jan.
of
$25,000,000
Dec.
Broadcasting Co.
•
Electric &
$7,500,000
is planning to issue
and sell $6,000,000 of cumulative preferred stock (par
$100). Proceeds—To prepay bank loans and for construc¬
tion program. Underwriters—To be determined by com¬
was
company plans to issue and sell
common stock.
Price—Expected to be
Underwriter—Van Alstyne, Noel & Co/,
19 it was reported
Feb.
Southwestern Gas & Electric Co.
17
Virgina
Feb.
March
(3/23)
Bids will be received by the company up to noon (EST)
on
March 23 for the purchase from it of $8,400,000
equipment trust certificates, series QQ, to be mature in
share.
per
New York.
28
it Southern Pacific Co.
Jan.
720,000 shares of
$2.50
in additional stock of
Underwriter—To
Stuart &
determined
debentures
<
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.;. The First
reported company plans to issue and sell
$15,000,000 of first mortgage bonds in July.
-rrTo
the issuance of
.
15 equal
Co.
by
Transamerica
r
for
investment
Co.
Mitchell, President, announced that the
plans to raise approximately $12,000,000 of
company
new
Indiana
12, D. H.
4.
York.
an¬
reported this
country may sell between
$30,000,000 and $40,000,000 of bonds in the Spring (prob¬
ably in April). Underwriters—May be Kuhn, Loeb &
was
(to be placed privately), and
stocks (he did not assume the sale of any cornstock). Plans for the possible issuance of new secu¬
rities are not at all definite as yet, it was announced on
March
the SEC and the Pennsylvania P. U. Com¬
the issuance of $50,000,000 oh'bonds; Pro¬
ceeds—To redeem $30,000,000 of V/s% bonds presently
outstanding and to help finance- construction program.
mission
Southern
common
that $40,000,000 of that as¬
financing might be in the form of
man
ments with
Inc.
17,500 shares of
new
ferred
nounced company'4s planning to file registration state¬
,
reported company plans to issue and sell
was
Thursday, March 10, 1954
possible
was
accomplished
Denver, Colo.
it Philadelphia Electric Co. (4/25)
H. P. Livecsidge; Chairman of the Board,
.
that based upon the assumptions that he was
making he
that the remainder of the financing would be
it was reported company
March 9
.
believed
plans to issue and sell
about $500,000 of 6% convertible preferred stock.
Pro¬
ceeds—For expansion. Underwriter—Paul C. Kimball &
Co., Chicago,. 111.. Offering—Expected in April
Feb.
Dillon & Co., New York.
man,
Finance Corp.,
it
$85,000,000
first mortgage bonds,
new
program.
Underwriter—To be
competitive bidding* Probable bidders:
by
that
sumed
Corp.; Smith, Barney & Co.; Harriman Ripley &
Jan. 31
$100)
New
cated
i
construction
People's
company
(G. C.) Co., McKeesport,
;
announced stockholders will on Apfnil? 12 :
Murphy
Feb. 8,it
*
Co. Inc.
^
stockholder will v.ote
March
12 on increasing common stock from 530,000
shares to 2,000,000 shares to provide for a 3-for-l splitup, and additional1 stock for future issuance.
Under¬
writer—May be Kidder, Peabody & Co., New York. *
f
Feb.
,
gan
Bros. &
,
/
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
& Co. (jointly); Kidder, Peabody & Co.; The,First
Salomon
Hutzler; Blair & Co. Incorporated; Kidder, Peabody & Co.
' /■ ' '
.
was
expected to he received in March or April for
are
Electric Co.
reported company proposes issuance and
$7,500,000 of preferred stock later this year. Pror
sale of
.
natural
gas
facilities is launched.
He
indi¬
may
be included among the bidders.
'
it Wbite River Propane Gas Co.
March 3
tion
of
shares
it
was
reported company plans early registra¬
convertible debentures' and 50,000
$400,000 6%
of
common
stock.
Underwriter—Eisele
Libaire, Stout & Co., New York.
&
King,
Volume 181
Number 5410
The Commercial and Financial Chronicle
...
Rock
Right, Mr. President!
The
President,
taxes
holders
stock,
you tell us how you feel
proposal to cut everybody's
\
"
PRESIDENT:
"The
Due
the
clearing away the
the two giant
General Motors deals, the under¬
writing
fraternity
was
pretty
bits
proposal for
cutting the income
taxes of every individual in the
/United States $20; You have asked
a
question, Mr. Clark, that takes
time to
some
"Now,
proposal
course,
kind of
should make
closer
look
start off with this
for
free
which
developed
moment,
Eisenhower
Pres.
observation.
-
are
series
a
forward
the
clear
for
distance
some
'
rank
groups"
bond
large-
of
_
banking
in this day and
file
and
age,
investment
of
the
houses
participate
in
which go after revenue
such
issues
tively fixed incomes. But in the long run, the per¬
son that is hurt most is the
person who lays aside
savings in the forms of pensions, insurance plans
and savings bonds for.use in his older
age.
"For example,
anybody who paid up all of his
Illinois
Toll
Florida's
im¬
Commis¬
Road
sion's projected
$390,000,000 offer¬
ing.
'
With
,
!
,
information
the
meetings
week
the
bonds
are
in
to
of
preferred
part
any
issue
funds
bring
will
put
finance
day
will
"standby"
undertake
the
on
for
market
issue
pre- "
of that company's deben¬
The
following Monday, also via
are slated
an issue
of $20,000,000
of
new
debentures for the Joy
Manufacturing Co.
negotiated deal, bankers
5%
to
30-
a
open
along-4^
Pacific
the
re¬
market
and
will be ready to take up any part
With
required to be sold to provide cash
redemptions at $105
Shearson, Hammill
(Special to The Financial Chronicle)
for preferred
a
to
000,000
the
the
outstanding
Kan¬
will
tures.
neces¬
stock.
Bankers
its
Co.
Finance Corp, an offering of $14,-
market March 24,
or
this
demption
LOS
share and dividends.
ANGELES, Calif.
Wil¬
—
liam R. Peeler has been added to
the staff of
Philadelphia Electric
Philadelphia Electric Co. is
paring to register with the
curities
pre--*
.
Shearson, Hammill &
Co., 520 South Grand Avenue.
issue
will
'
-
Se¬
and
Exchange Commis¬
sion and the Pennsylvania Public.
Utility Commission, an issue of.
$50,000,000 of new bonds.
Joins Staats Staff
(Special to The Financial Chronicle)
LOS
ANGELES,
Richard Jenkins is
but
Calif.
now
O.
—
associated
put up for,
with William R. Staatif & Co., 640
competitive bids with the com¬
South Spring Street, members of
pany having tentatively set April
the New York and Los Angeles
25 as the date. ' '
Stock Exchanges.
Proceeds will be used by the
big utility to" the extent of $30,-
000,000 to provide for the retire¬
ment
of
bonds
now
that
amount-'of
37/8%
Near-Term Prospects
The
next
With Mitchum, Jones Co.
(Special to The Financial Chronicle)
outstanding, with the
balance to be applied to construc¬
tion costs.
tenta¬
now
tively
of the
week
will
provide
for
LOS
ANGELES, Calif. — Wil¬
Ridgway
has
joined
the
staff of Mitchum, Jones & Templeton, 650 South Spring Street,
members of the Los Angeles Stock
Exchange.
liam
sion naturally will provide for the
a
^
m
"Now, when
at
a
we
talk about
revenues
spite of every
have been able to make, is still spending
somewhat more than it takes
in, we are reaching
some
kind of heights in fiscal
-irresponsibility."
on
from
the
President's
of
the
-
news"
corporate
sec¬
been
impressive
sufficiently
conference
levels
current
base for gauging
new
investor at¬
debt financing.
new
DIVIDEND
Wall
dividend
uled for completion
on or prior to
opening of the Pennsylvania
Extension, planned for June 1956,
the
over
Turnpike
via
a
bridge
cents
day
(10c) per share has
the capital stock of
March
25,
1955
to
on
payable
close of business
the initial dividend
stock following the
2-ior-l
split effective
February
23rd.
It is
expected the next dividend will be paid July 15.
stockholders
March
on
new
at
record
of
This
1955.
18,
the
which is to connect with the Penn¬
sylvania
this
$1
JOSEPH
March
7,
$34,000,800 in
Turnpike Authority
Jersey
series
B
bonds
which
the
S.
STOUT,
Secretary.
fund from July 1, 1956 and other¬
wise from July 1, 1958.
bers
135
Inc.
in¬
Washington
construction
additional service
Prior
thereto
he
was
is
TIME
GENERAL
with
*
CORPORATION
with
Du
Mont Laboratories, Inc.,
clared the following
Standard
Investment
Co.
par
Cities
Service
PREFERRED
Preferred
Stock, payable March 20,
1955
to
record
15,
Paul Raibourn
3,
stockholders
at
the
($.50)
oil Mont
cent
LUDNIAN
preferred stock, pay¬
COMMON
quarterly dividend
regular
March
payable
record
1955.
the
at
21,
per
STOCK
of 37Hc
1955 to
per
close
of
stockholders of
business
March
April 1, 1955 to sharehold¬
dividend
A
North Miami,
Florida
STOCK
of 50
cents
per
payable April 1, 1955 to
of record March
shareholders
.....
March 2, 1955.
WESTCL0X
•
BIG BEN
SETH THOMAS
STR0MBERG
RECORDERS
MOTORS
10,
H. STEFFLER
UNITED
.
GAS
CORPORATION
bhrevepdrt,
LOUISIANA
Earnings Statement for the Twelve
of record March 14, 1955.
HAYD0N
ERLE G. CHRISTIAN,
ol^
The transfer books will not be closed.
WALTER
CORPORATION
the 414
per
15, 1955.
of
close
"MR. CONTROLS
Treasurer
on
dividend
Secretary
value Common stock, payable April
Convertible
business March 10,1955.
STOCK
John H. Schmidt
Company has
per
5 Vi per cent Cumulative
Stock,
to Pre¬
ferred Stockholders of record at
cumulative
11, 1955, to stockholders of record at the close of business
March
$0.34375
the $25.00 par value
dividends:
The regular quarterly
NOTICE
quarterly dividend of fifty cents
$10
of
Secretary & Treasurer
of
Dividend Notice
its
on
The Board of Directors has de¬
14,1955.
on
A regular quarterly divi¬
dend
share has been declared
February 22,1955
share
share
PREFERRED STOCK
Dividends
California, 721 East Union Street.
CITIES SERVICE COMPANY
of
Greensburg, Po.
LABORATORIES, INC.
The Board of Directors of Allen
T-
PASADENA, Calif.—Patrick N.
sched-
Directors
CONTROLS COMPANY
share has been declared on the Common Stock
COMMON
of
GREENBURGH,
Treasurer.
A
.
a
G.
ROBERTSHAW - FULTON
1955
ers
Board
close of business March 9, 1955.
JOHN
ALLEN B. DO MONT
March
Ex¬
able
The
been
Maclntyre has become connected
two
DIVIDEND
declared
to
McDANIEL, Secretary-Treasurer.
of $1.0614
ening and improvement
fifty
has
share
per
1955.
(Special to The Financial Chronicle)
This wid¬
areas.
Stock
1955.
24,
of
payable March 29, 1955,
stockholders of record at the
1955.
the close of business March
With Standard Inv. Co.
Bridge;
of
E.
17,
cents
dividend
declared
In All Phases of Television
interchange to the northern termi¬
nus
at Route 46, which leads to
the
a
associated
Midwest
Cruttenden & Co.
the road from the Lincoln Tunnel
for
the
March
on
.
terchange to the Woodbridge in¬
terchange, which leads to New
Jersey shore points; for widening
George
I*11
M
Mullaney, Wells & Company,
South La Salle Street, mem¬
of
(50c)
this
Convertible Preferred
change.
Mr. FitzGerald has re¬
cently been with Waddell & Reed,
being sold to pro¬
vide funds for widening the Turn¬
are
pike from the North Camden
become
410
Directors
payable April 1, 1955
with
has
NO.
quarterly
day has declared a dividend
of $.25 per share on its outstand¬
ing shares of 5% Cumulative
CHICAGO, 111.—Frank J. FitzGerald
of
held
A
1955.
this
(Special to The Financial Chronicle)
by the Authority at
competitive bidding March 17. The
issue matures July 1,
1988 and
may be redeemed for the sinking
February
N. Y.
of this Company, at
day, declared an interim
dividend for the first quarter of 1955, of One
Dollar ($1.00) a share on the outstanding capital
.stock of this Company payable on March 26.
1955, to stockholders of .record at the close of
B.
1955.
the Delaware River.
With Mullaney Wells
are
sold
5,
COMPANY-
Broadway, New York 6, N. Y.
is
value
par
Y'ork
New York
& Co. to bid for the
the
Board
Meeting
61
CORPORATION
Street,
ten
of
declared
Corporation
Rosario
NOTICES
SHARES
NATIONAL
14
newly-formed syndicate has
been organized by F. S. Smithers
NOTICES
Company
DIVIDEND
a
G.
:
A
and
a
Honduras
March 5,
can
New Syndicate to Bid
On N. J. Turnpike Issue
DIVIDEND
NOTICES
Broadway, New
to
as
&
Mining
business
A
The bonds
York
The
the
suggest
been
be
New
120
the
second
DIVIDEND
underwriting
work
of
MIAMI COPPER
the
titude toward
reduction feasible.
smattering
a
of firmness but up to here has not
only hope that the President and his
party will always feel this way—and hasten the
day when reduced expenditures make major tax
New
only
ondary market shows some signs
February 23.
We
offering of this dimen¬
an
Currently
we
—Extract
March
industry.
decreasing
time when the
government, in
saving
on
■
.„
...
bidding
for
bulk
vast
^
set
15, and
pension plan he had bought.
-
.T
of all
Tuesday
On
Wednesday
bankers
will
through
negotiated ' procedure,
the latter having been held this
on
pension by as early as 1939 was getting
in 1953 half of the worth of the
dollars, the worth
to
road
The
pending $74,000,000 prospect, and/
rela¬
on
quite
However,
the
people of fixed incomes, white-collar yyorkers and
"'.others who for the moment, at
least, are
is
projects
ahead.
"Whenever you have inflation,
"
the immediate effect, of
course, is to hurt first the
share of
the
scale
proposal and
one
week
calendar
Let's take £ little
this
at
quite
of modest-sized undertakings and,
appeal to low in¬
an
brackets.
come
firstjglance
proposal that
a
capital
restrictions
.
This
popular, and at
a
is
their
the
week.
such major operations,
bankers naturally are
champing at the bit and ready to
go
after new businesses it de¬
velops.
place, any
taxes; is, of
this
this
normal
to
exerted by
investment
first
reduce
to
pieces of
With
from
opinion about it.
in. the
and
-much- back
answer^ because you
asked for my
for
Except
question affects this
r£ach
to
of
On
Electric
ferred stock.
convert into common
Chicago Rock Island &
sale
sary,
&
bids for $10,000,000 of bonds
with 60,000
shares of new
to)
is
Gas
sas
Pacific RR.'s $65,000,000 of deben¬
tures.
can
by $20?"
V THE
underwriters.
decision
Service:
about the Democratic
Debentures
will be pretty much set by the
of
the road's preferred
one
ROBERT E. CLARK of The International News
"Mr.
Island
next
major undertaking in
the offing, and the scope of this
But Stick to It!
^
63
(1191)
The Board of Directors of Ludman
Corporation has declared
the usual quarterly dividend of
10c per share to stockholders
of record March
15.
1955,
payable March 31, 1955.
Ludman Corporation has paid
quarterly dividends without
interruption since its first
public offering.
MAX HOFFMAN
Months Ended December 31, 1954
United Gas Corporation has made gen¬
erally available to its security holders
earnings statements of United Gas Cor¬
poration and of United Gas Corpora¬
tion and Subsidiaries Consolidated for
the
period from January 1, 1954, to
December 31, 1954, such period be¬
ginning after the effective date of the
Corporation's Registration Statement
with
respect
to
101,300 shares of
Common Stock ($10 par value), filed
with the Securities and Exchange Com¬
mission
1933,
under
as
effective
of
such
mailed
the
Securities
Act
of
amended, and which became
on
December 21, 1953. Copies
earnings
on
statements
will
be
request to any of the Cor¬
poration's security
interested parties.
President
holders and other
N. C.
Secretary
March 4, 1955
McGowen,
President.
Financial Chronicle
The Commercial and
64
Thursday, March 10, 1954
...
(1192)
but
little
BUSINESS BUZZ
Canadian
the
astiington
went
V
|
tention
M»
in price.
uncomfortable experi¬
ences.
The feeling will be not
unlike that one might experi¬
ence
when suddenly
called
without provocation or
notice, in the middle of a gray,
"bustling ; business day, by the
faded
spinster object of last
summer's
shipboard
romance
upon,
golden tropical moon.
in
And besides, one has
married to the Wel¬
busy day.
since
got
interested
isn't
and
State
fare
the
case
school
Taft's in¬
If the President were
brace
special
and
spend
nice green
still consist of those
the Treasury,
from
checks
and
people would be glad to receive
them, even if the government
didn't admit it was spending
job too
Hoover
the
to
school
to be financed by a
extra-legal
authority
outside the
budget, then the school pro¬
gram
would
have
a
better
chance,
for
it
would
mean
money. The money may not be
in
the
budget, but it would
motion
much, however, for the White
House removed the former
respect
to em¬
$500-million
which would borrow on its own
may
Chairman who. took the
seriously.
a
program
be May or
embarrass the
Eisenhower Administration too
until
industry.
more
It may not
With
pro¬
couldn't raise the money
themselves by hook or crook.
Furthermore, Northerners think
it would help the South steal
Administration
is moving in the opposite di¬
rection, as to schools, hospitals,
roads, and numerous other wel¬
fare
and
spending proposals.
The
Intergovernmental Rela¬
tions Committee report won't
out
the
however,
the
actually
induced into a blush over
Commission,
to pay
except
money,
the
known as the
was
about
government lending agencies. If
the report of five years ago is
guide, the Hoover Commis¬
sion will look unkindly toward
any
lending
government
generally,
the hidden subsidies
of
government lending, and at the
very time when the Eisenhower
Administration
is married
to
the idea of subsidized lending
and
financial opera¬
concealed
tions.
There
is
the end
Viewed
considerable
a
un¬
that
feeling
of;
dercurrent
Eisenhower
President
may
in
out with a roads
come
approved
by
Con¬
fairly
well
along
the
program
gress
White
the
This
mends.
down
for
to
House
boils
bil¬
expenditures
Federal
interstate
the
recom¬
program
additional $25
an
of
lion
system, and
regular
the maintenance of the
Federal
the
aid
historic
program
twice
period
at
level, for a
Chief
tation
reason
in
there is
a
for
program.
honorable
some
for
this
circles
expec¬
is
that
great demand in Con¬
expensive roads
The tongues of the
an
members
are
fairly
well
hanging out for same.
When
a
"budget - balancing"
Resident says the United States
the budget and
debt ceiling with respect to the
road program, by proposing to
have an authority borrow on its
supposedly,
credit,
own
and
spend outside the budget.
do
don't
for—we
you
guys
states to evade their
by setting up sep¬
arate
corporations to borrow,
build and lease schools regard¬
limits
less of constitutional
its.
■
•
debt
lim4-
■»
Yet there was no such horror
principle expressed at the
proposed phony finance of the
school program.
The objection
over
to the
latter
was
In
there
then
sum
If
propriation.
This
it could
would
hungry man were
told that at a given church the
warden is so nearly blind he
very
notice
wouldn't
tinuation
himself to a five spot
the collection plate, his
reaction might be one of
helping
of
out
initial
item
On
the
now
the
power
Congress is hun¬
veto
any
item of
for roads.
ator,
Byrd's Debt
promote
is
duced
consist¬
Senator
Harry F. Byrd, for his part in
the first two rounds against the
ent
$20
Virginia's
to
debt
in
to
be
the
eight Democrats from Virginia
for
of
seven
President
the
the
of
readers,
second
round
round
the Finance
While
the
on
where
tax
it lost
ects
~
re¬
,
the
some
fare
cut,
—
compel
especially
for
one
kill .off
Senator's
new
the
pet
Senator
a
proj¬
would
and expensive wel¬
program
White
sponsored by
the
House.
Square Club_ of Ne
meeting Mason
York monthly
Temple Building, 71 West 23
March
(Pittsburgh,
1955
23-25,
Pa.)
Stock
of
Firms meeting
Exchan
of Board of Go
ernors.
April 4-8,1955 (Philadelphia, P
Institute of Investment Bankir
at
of Pennsylvani
University
(Houston, T«
Investment Ban
spring meet'
April 24-27, 1955
Texas Group
Association
ers
at the Shamrock Hotel.
(St. Louis, Mo.
Municipal
Deale
Louis
St.
Group annual outing.
(New York City)
Apr. 29, 1955
Security Traders Association
New York annual Dinner at t
Waldorf Astoria.
May 9-10, 1955 (New York City
National Federation of F
cial
Societies
Analysts
at
Hotel Commodore.
May
18-21, 1955
Springs)
(White Sulph
Investment Bankers Associati
Sees No Devaluation
budget-balancers
endorsement
to
expenditures,
out in
In
tribute to the Senator's ac->
complishments in this respect,
not all of them go along with
latest
actually
promise to give his support for
pay
his
lever
a
threaten :to
unless
Brokers
>
(New York Cit
Apr. 28-29, 1955
lot of big spending ideas
a
particular
Committee.
the
re¬
propose.
could
veto
as
Edward Hotel.
March 18, 1955
opposing tax cuts
total
—could
newspapers
single individual twas
sponsible for the loss of
to
generally,
himself
President
with
and
know, Senator Byrd more than
the
used
the
And as all
against this tax cut.
toward
not
item
higher
House,
a
Sen¬
or
move
when
does
The
•
the
In
interest to
expenditures
talk
he
income
in
cut
cap
per
to
about which the President likes
budget-balancer,
taxes.
Presi¬
threaten
nothing
the
tion
Association
item
doing
whilst
.
*
look
the
particular Congressman
Toronto Bond
Street.
budg¬
would give the
to
(Toronto, Canad
Traders Associ
Annual Dinner at the Ki
March 11, 1955
con¬
would
hand,
other
dent
Eisenhower
extra
good, at least to many.
veto
President
in
veto
disgusted revolt. After he was
hungry longer, his sentiments
Eisenhower Is in
was
in the
nor
unbalanced
of
the
ets,
who
interested
marital finance
church-goer
a
time when there
a
President
neither
If
that there
be imagined
come
a
was
White
the
give
immense leverage.
an
-
'/•. -■
-
would
House
budget.
a
one
Dealers
the Biltmore Hotel.
the
drifting
Canadian
cent
to
Spring
only
of the
a
meeting
of
Board
Governors.
one
U.
S.
there is believed to
be
premium
dollar,
of..the
dollar
down
over
the
TRADING MARKETS
Riverside Cement B
that it would
of money
in
any
Morgan
Engineering
Seneca Falls Machine Co
short
time.
National Co.
In
that
(New York, N. Y
New York Security
sociation 29th Annual Dinner
be
would
authority to' strike out
item of appropriation
without vetoing the entire ap¬
responsibility of putting it
in the
-
given
any
are
authorized,
will come up the
question of financing. It prob¬
ably will be difficult to take
the
item
the
Under
President
the
t
r
simply not prove a feasible way
for shoveling out any consider¬
able
Investment Field
the
'
veto."
veto
when the
On the other hand,
expenditures
any
ment
in
Mar. 11, 1955
President
urging
Juliet'
Exchange!"
"item
political hardihood of Sen¬
ator Byrd, to oppose it.'
the
voted
having the govern¬
buy school
bonds, and
rehearsing
are
'Romeo and
York Stock
New
financing of
the school program would have
been just as much of a fiscally
paramour
affair,
with
the
the
Curiously,
of
one
are
seasoned
of 10 years.
gress
,
debt
Roads Program
lines
how
cal disregard of
Commission is likely to release
its recommendations
surprising things
some
of
the
left-
the
wingers rebelled at the idea of
the President's proposed cyni¬
Hoover
the
of
One
Republican Party.
week,
next
WHAT
care
Initially Shocked
adoring words poured into
the ears of what used to
be
toward
EVENTS
don't
"I
gry
the
For
COMING
might change.
checks.
White House face may
be
(This column is intended to r
fleet the "behind the scene" inter
pretation from the nation's Capit
and may or may not coincide wit
the "Chronicle's" own views.)
posed $200 million for direct
grants to communities willing
to take the pauper's oath that
the encroach¬
on state prerogatives and
sources of revenue.
Now
June.
This is a
Congress
previously turned down.
count is the pro¬
which would
Eisenhower
be
to
which
proposition
would offer help to few
"progressive"
moderate
boys
who think that about
the only feature of
the bill
from
retreating
the
Commission
backing
also
Federal Safety
regulate safety
practices in industry.
they
of Senator
bill to set up a
and girls,
outstanding leader, Sen¬
Because
is
Mitchell
Mr.
a
*
school
bill
backed by the Labor Secretary.
.
President's
and the roads
the
up,
subcontractors
All
Act.
would be regulated under a
gram
bodies were set up
fluence, the President went for
a Commission to study ways of
state
the
there are vast differ¬
set
As
ator Taft.
ment
a
ences.
Relations.
in
1953, when the Eisenhower Ad¬
ministration was still flirting
ardently with the Republican
Party of the 1952 campaign and
its late
At present,
the
program
program,
i
Intergovernmental
The two
program,
upon
between
As
unwelcome
visitor will actually be a parcel
of them, consisting of the re¬
ports of the Hoover Commis¬
sion
and the Commission on
this
In
fixes wages.
contracts of $10,000
or less, and only the first sub¬
contractors, is regulated under
Labor Department
pro¬
ports.
more.
any
betting
act, under which the
contracts
3% annual
boost in gas tax revenues each
year for
the 10 years of the
highway program.
These roact
bonds would be serial bonds,
have an average life of 20 to
22 years, and would pay 3% to
3 %% interest, according to re¬
spinster isn't so delec¬
one's office and on a
The
highway
the
are
,
#
table
to remove
under
officials
authority
roads
posed
the
with
connection
Mitchell has
He is backing a bill
virtually all the ex¬
emptions from the strictures of
the Walsh-Heaiey government
members.
In
Ideas
Has
got ideas.
struction, it is
some
a
year
a
do
the part of the Do-
on
Labor Secretary
for road con¬
something which
is most pleasing to the voters
back home, and hence it comes
to have an appeal also for the
billion
Pretty
soon
the Eisenhower
Administration is going to have
under
additional $2.5
should spend an
—
observers
minion Government to keep its
-
Mitchell
C
also
of the
Canadian dollar reflects any in¬
dollar down
WASHINGTON, D
it
eent pre-
dropping
believe the
not
■■
market
this is
—
one
a
Informed
mium.
xJLm rlv
Nation's Capiat
Iron the
buck
to
down
"
J||/J
BfW-the-Scene Interpretations
of
play
year—and
the time of the seasonal low in
-
b>
the
Last
forces.
those
difficult
paradoxes
for
observers
the
to
W. L. Maxson Co.
most
compre¬
Carl Marks
left-wingers
were
shocked, on the other hand, at
the extra-legal route proposed
hend,
the
for highway
The
FOREIGN
financing.
thinking
is
that
SECURITIES
r.o Tnt
SPECIALISTS
)
LERNER & CO.
.
SO BROAD STREET
Con¬
will feel bound to enact
an
expensive roads program.
With
the
President
standing
TEL:
NEW YORK 4, N. Y.
'
HANOVER 2-0050
TELETYPE NY 1-971
gress
behind itf few people
&
will have
i -J*, i,V,ipmi".| I""1"
*
"*"■
^
\
Investment Securities
19 Pest Office
Square, Boston 9, Ma
Telephone
mu"."}.",.ijt
S
'
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'
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^
—
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HUbbard 2-1990
Teletyp
BS 69
@FedFRASER