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z
UOSeCH?G2N
ESTABLISHED 1S39
1952
MAR !•>
Tk a
ADMINISTRATION
BUSINESS
LIBRARY
Financial
Reg. U. S. Pat. Office
Volume
Number
175
New York, N. Y.,
5098
EDITORIAL
International Price
See It
We
As
"Government
Executive of leading lead
mania"
Authority, purport¬
ing to demonstrate how shortages in basic supply
or
output should most effectively be allocated
to
different classes of 'claimants,' have gone
badly awry. That Washington is slowly becoming
Condemns
and the National Production
bit
concerned
evident
is
cannot read between the lines.
.
.
toration
We
action is
to
that
describe
.
sense
the
it
stern
ment
At any
appealing catch¬
to think about
it is all it is
beneath the
is
invariably the
most
a
calling
its
operating at this
very
sion
In
United
States,
a
law known
as
.V
result,
.
informed such hearings will
we are
Washington office of the Commis¬
beginning March 14.
sense
one
Should
in
these
public hearings
may
be of
they last long enough the time
holding them may afford an op¬
However, let there be no illusion on the sub¬
ject of the efficacy or lack of efficacy of such
public hearings. To us it is not conceivable that
on
page
reasons
any
the Sherman Anti-Trust Act to prevent
36
will be urged thereat which have
already been emphasized abundantly in writ¬
ing by individuals and associations, including the
by Mr. Wormser before
dealers
and
Continued
investors
on
page
29
in cor¬
porate securities are afforded a complete picture of issues now registered with the SEC
and potential undertakings in our "Securities in Registration" Section, starting on page 41.
DEALERS
by
portunity to repeal Title V in the interim.
we have an abhorrence of mo¬
Sixty-odd years ago we adopted
NOW IN REGISTRATION—Underwriters,
Representative
the SEC to hold public hearings on
the Prospectors and Devel¬
Association, Toronto, Canada, March 11, 1952.
address
by
minute, osten¬
Continued
opers
on
consumed
not
An
a
value.
sibly to stabilize something or other.
From what I have seen of European economies in action,
there is little that I am anxious to see copied.
nopoly, which I share.
introduced
proposal.
As
where cartels have operated and are
Wormser
Foreign Commerce Committee a
was
be held at the
They feel that
such stabilizing instrumentalities as
price fixing by the government, or
by cartels, private or governmental,
are sound.
They may point to Europe
E.
and
Representative John A. McGuire of Connecticut
will disagree with me.
26
SECURITIES
how to stabilize.
sion, and lastly, of government irrH
prisonmenti ,Some in my audience
*
page
definition, or
a
feeling in the air
Leonard W. Hall of New York and seconded
glitter,
and repulsive face of govern¬
control, of government compul¬
that normal demand has been
on
is
on
surface
In the
Continued
and
agreed
a
session of the Heller Subcommittee of the
resolution
a
Then you wonder if
cracked up to be, for,
Felix
a
disease difficult to
economic doctors in Europe and
"stabilization,"
it.
In the present
ficial' in the
because
At
Interstate
twentieth
and the tide of public dis¬
that Title V is doomed.
curb it.
the
on,
pleasure mounts, there is
liberties,
century
rate,
taken, the oversupply situation will have
.
as
our
opposition to the Securities
Independent Offices Appropriation bill
keeps rushing
res¬
word until you begin
instance, it is difficult
judge to what extent the surpluses are 'arti¬
...
safeguard of
with
infected
been
proposal. Other opposi¬
Exchange Commission proposal under Title
V of the
controls merely postpone inflation,
where
corrective
before
as
elsewhere haven't apparently
get much less manageable.
".
to
conclude
to
have
change.
Stability Program. Advocates
of free markets
malady known
reflecting the military production
program, a few metals and chemicals have eased,
but there is little movement in other groups.'
Thus the DPA characterizes the general materials
picture. What the first clause means is distress¬
ingly obscure; if it refers to the 'stretch-out' of
the military program, then it is implied that the
planning agency, as little as a few months ago,
had no knowledge that it was coming.
Other¬
wise, they could have relaxed their restrictions
on
civilian consumption accordingly.
On the
contrary, until very recently, the responsible
agencies were warning of deeper cuts to come and
issuing orders to 'prove' it. This performance is
quite discouraging because it once again demon¬
strates the inflexibility of the planning
pfiachine.
led
progressive
but do not prevent or
.
SEC proposal to implement
Decent burial sole solution.
As the torrent of
and
International Materials Conference
of
and concludes price
'Partly
are
and
incentive
and of UN Economic
"
We
work
who
those
to
even
liberty,
Copy
producer condemns "stabiliza¬
aiding monopoly, creating cartels, and
as
on
NASD opposes
tion.
destroying
Production
itself?
reverse
tion
a
Unfortunate forum. Has Commission stature to
Vice-President, St. Joseph Lead Company
Administration
tions of the Defense
Title V.
By FELIX EDGAR WORMSER*
planning, or any central eco¬
planning, is necessarily a difficult and
notoriously an imperfect art. The latest of a long
line of examples of its shortcomings is the present
easing of metal supplies. The elaborate tabula¬
Cents
Honorary
Public hearings to be held
Stabilization—A Hoax
nomic
a
Price 40
Thursday, March 13, 1952
State and
in
U. S. Government,
State and
Municipal
Securities
telephone:
Municipal
UTAH
R. H. Johnson & Co.
Established
Oil
Bonds
Mining
and
1927
Securities
HAnover 2-3700
INVESTMENT SECURITIES
Direct Private Wires
Bond Department
Chemical
BANK & TRUST
64 Wall
Street, New York 5
COMPANY
BOSTON
bond department
Harrisburg
Albany
Troy
ST., N. Y.
30 BROAD
Williamsport
Wilkes-Barre
of INDIA. LIMITED
Bankers to the
Government in
Office; 26,
Bishopsgate,
London, E. C.
Salt
Teletype: NY 1-708
Pacific Coast &
Hawaiian Securities
SECURITIES
Private
Subscribed Capital
Paid-up
Reserve
Capital
Fund
£4,000,000
£2,000,000
£2,500,000
conducts every description of
banking and exchange business
The Bank
Dean Witter & Co.
14 Wall Street,
Members of
Trusteeships and Executorships
also undertaken
New York, N. Y.
Principal Commodity
Exchanges
&
Boston
Los Angeles
•
•
Honolulu
Chicago
OF THE CITY
Spokane
-
'
Central Vermont
•
Public Service Co.
Analysis upon request
Co.
PoMBoox Securities
Grporatcoti
IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal Exchanges
MEMBERS NEW YORK STOCK EXCH.
40 Exchange Place,
105 W. ADAMS
CHICAGO
BANK
OF NEW YORK
COMMON
ESTABLISHED 1891
NEW YORK
CHASE
NATIONAL
DEPARTMENT
Goodbody
115 BROADWAY
•
Denver
BONDS & STOCKS
and Security
San Francisco
New York
City
Angeles
,
THE
Wires
CANADIAN
Branches in India, Burma, Ceylon, Kenya
Colony, Kericho, Kenya, and Aden
and Zanzibar
Los
Lake
1915
of all Principal Exchanges
CANADIAN
CANADIAN
Direct
ESTABLISHED
50 Broadway
Allentown.
Kenya Colony and Uganda
Head
OF NEW YORK
Bond Dept.
J. A. HOGLE & CO.
Members
Scranton
Washington, D. C.
NATIONAL BANK
THE NATIONAL CITY BANK
PHILADELPHIA
New York 5, N. Y.
ST.
111
Broadway,
WOrth 4-6000
Teletype NY 1-702-3
WHitehaU 4-8161
Boston
N. Y. 6
Teletype NY 1-2706
Telephones
Enterprise 1820
2
The Commercial and Financial Chronicle
(1074)
IN
MARKETS
TRADING
The
Inland Steel
Conv. Deb. due 1972
I. and Rights
3% %
A continuous forum in which, each week,
W.
in the investment and
Texas Utilities Co.
&
Common
Rights
1952 Series
Rights
&
New York Hanseatic
Established
offer
as an
KURTZ
mortgage
ever,
Teletype NY 1-583
Probably
all
by
us
barber
have
\'i
Members
New
York
Stock
York
Curb
Exchange
Tel.
REctor
100,000
share,
basis
toughy
will
from
is
you
know you
called upon for reg¬
investment
for
Camp Manufacturing
weeks
two
years
mal
and,
has
Life Insurance Co. of Va.
to
STRADER,TAYLOR & CO., Inci
Lynchburg, Va.
LD
LY
TWX
39
be.
a
to
and
have
locality in
any
the
United
States
'*
BONDSJ
1856
1
I
H. Hentz & Co;
Members
York
been
Akron
sion."
the
Chicago
tendent
of
j
with
Curb
Exchange
l
bank.
Exchange
,
Exchange,
Board
of
Cotton
other
Inc.
,
the
the
name
was
of
charter
same
a
which
by the Ohio Superin¬
Banks
in
connection
liquidation
were
The
of
the
old
new
paid off.
GENEVA,
In
Exchange Bldg.
1947
the
then
tral
j PITTSBURGH
operating
Trust
verted into
the
SWITZERLAND
which
bank,
'
was
con¬
national bank under
a
of
name
in
>
The. First
UTILITY STOCKS
Direct Private
before
$1.60 in
share
per
nadian
"
to
share.
$10
per
the
stock
in
these
3?/fcsof
of
On Dec. 31,
currently
Oil 3 V2S of'61, currently about
I20-
1
by
stages,
easy
we
in
the
statement
which have been
Oil
oil
been
estimated
appears
purely
to
Barberton
offices
you?; Of
are
and
which
in
the
j
'
\.i;
of
i..
request
on
-'
.
Members
N.
Y.
Security
150 Broadway
Dealers
Assn.
New York 1
DIgby 9-1550
Tel. NY 1-1932
'
SUN LIFE
; ASSURANCE
;
.
COMPANY OF
CANADA
39
when
Bought—Sold—Quoted
/-■•
-
are—if
you
tidllen & Company
you
thinking in terms of. Canada,
30 Broad St., New York, N. Y.
HA
2-2600
—
Tel. NY
1-1017
*
(Speciai to the financial chronicle)
...
,
„
Calif.
P.
Ben
-
Placer Development.
Riley, have
f
at :129 North La
•
Brea'Avenue
to
S
if;
V
TUNGSTEN-OIL-GOLD
enSaSe in an investment business.
the
Limited
LEAD—ZINC
Akron business district which had
?Lfti,mfle^e„piacemJent value.in:
1948 of
$5,000,000, and
„
you
write
,
_
your
own
tion cost
figure
as
to
reproduc-
'
now
■
•
:
1«■
.
You
pay
you
Analysis available on request
-W. W. Smith Opens"
; •
,c
(Special
'
j
m.-
to
_
The
,T
Financial
_
-
Chronicle)
....
...
.
.
.
LONG*BEAGH, Calif.—'Woodrow
a securities business from offices at 6741
get—Book
about
$22
share
a
and
value per share/ -East Carson Boulevard.
He was
12/31/51; Evaluation formerly'associated with nmifriac
$2.10: Furniture and fix-. A 5
y asj>oclated with Douglas
as
reserve,
John R. Lewis, Inc.
Smith is engaging in
Summarizing all of the above:
1006 second avenue
-/
-
Seattle
.
Teletype SE 105
ELiot 3040
of
tures, est., $2; Excess value in.A* Hammond.
buildings, est., $10; Real value/'
our opinion, $37.73 for each of the!
proceeds
Joins Samuel
sale
shareholders
to
The
were
used
to
350,000 shares.
purchase the equity in the Bank's
building.
The'build-
In
your
other
words
(Special
you
put
can
friends into dollar bills
Capital
Debentures
Deposits
1/15/34
at
Stock
$741,645
500,000
750,000
40,852,262
300,000
750,000
1,583.869
12/31/44
109,218,72$
925,000
12/31/47
113,993,140
300,000
.
0
1,000,000
..
'
12/31/50
141,858,432
1
'0
159,074,429
0
,1,000,000
'
3,500,000
Chronicle)
.
LOS ANGELES, Calif.—Don J.
with Samuel; B. Franklin & Com-
5,532,199
5,507,090',
215 West Seventh Street.
pany,
2,541,055
3,909,463.
,
N. Q. B.
Franklin
Financial
Wentworth has become connected"
$558,257»
691,122
1,139,380
741,645
The
& Reserves
$500,000
500,000
12/31/35
to
a
Undivided Profits;-"
$7,331,353
17,731,170
24,880,627
12/31/51
•'
,
Rights
GEKSTEN & FRENKEL
substantial' formed
Riley & Hecht with offices
12/31/41
Tele. BS 142
course,
r
12/31/38
Portland, Me.
Enterprise 2904
Hartford, Conn. Enterprise 6800
Open End Phone to New York Canal 6-1613
of
/'►Riley & Hecht Opens
$750,000,
■; As-
heart
&
*Prospectus
.
Phone
Surplus,
9, Mass.
Common
n
"eY,ef.th„eless- 28-story modBut the mainl
building is a
structure
ern
market
I--: yield
fOr»'''..TT-A_
Cuyahoga •
"HOLLYWOOD,
owned in
Hecht and John
are
have
current
and
value
and
which
Rights
cents a share. But you
reasonable.
nominal
the
Falls
fee
be
&
Texas Eastern Transmission
direct
a
prominent in
so
meager
-
1952
busi-
are mvesting in, the future, aren t
equipment in its four offices has
sume
the
a
Pfd.
Rights
Texas Utili ies
weighed against last year's divi-
$1,207,083.07 and
The
furniture and fixtures at $1.
true
value
of the
fixtures
which
at
gives
/<
&
Common
equity stake in Canada's oil fields,
1951, the Bank car-"
at
Series
surely not
rest content unless he has
erratic
Rights
have arrived,
investor will
ness-^our
&
Conv.
2nd
4.40
Tel.
'.
;
And now that
.
ried the item of Bank Premises in
its
Common
El Paso Natural Gas*
issues—the
'66,.
^
American Tobacco
far, our
then do a
two
Teletype BS 359
:
^ N. Y. Telephone WOrth 4-5000
so
about 113V2—and British American
>e~al
Capital
Nat'l Aasn. of Securities Dealers Inc.
Pacific's
7-0425
yield of 3J/g%).
gave a
might
the
and
re-
and
days
CA
British
3%s of *70, currently about 145^,
after
transfers
1941
148 State St., Boston 9, Mass.
Tel.
of additional stock
Date
I. B. Maguire & Co., Inc.
Tel HUbbard 2-5500
sold
Main Office
CAnal 6-1613
31 Milk St., Boston
were
of
*
to New York
Members
shares
at
Telephone
;vs.
,
straddle by buying bonds with
of re- convertible
features — good
ex$23.63 amples in this group being Ca¬
•
is
$23.63
..
April, 1944, the Bank issued
35,000
which
markets
1941
•: J
■
,
25-year
progressed
individual
meat** ^°Wr WC
Company,
present
In
trading
was
The First Cen¬
as
National Bank of Akron.
active
in
issue, of
Having
was
tfce State of Ohio
(exclusive
request
on
individual
"
....
few bonds of the Canadian Government (my choice would be the
Columbia's
district
the nation,
earnings
but
office
J
bank rapidly regained
its old leading position and the
growth has been outstanding- as is
shown by the accompanying table.
Exchanges
DETROIT
Akron
-
fHls ufirs' acquisition should be
cent
any
".4
Central
Later the capital stock was
and in 1946 the deben¬
tures
Trade
Exchange
NEW YORK 4, N. Y.
CHICAGO
of
Information
yield 3/2%).
Then add a few
Province bonds (select one of the
New York payment issues—a re-
1934
government bond orices.)
_
N. Y. Cotton
in
in
$13.85
marketed
Orleans
And
First
The charter
and $500,000 of capital debentures
Exchange
Commodity
New
Akron,
leading institution in
to the "Great Depres¬
owned
MAINE CENTRAL R. R.
commensurate
his
ing
very
a
up
Cotton
York
the
size
branch offices
a
pare
In 1934 all the capital stock
Stock
York
New
New
of
with
were
New
the
value
taxes
-
general
in
The
name
revision
had
J.
-
Company.
'
.
135th
Net
particular
with the
a
1
in
in
July, 1951, this bank
serves:
is a standout
in these respects; This bank was
established in 1934 as a state bank
bank
Established
is
this
stocKs
in
Trust
*
that
'
this with any of your lead- financial, news' these 'oast' five
institutions anywhere ;in ? the years.- Very-good; why
not,x then,•
U. S.
(And what a hidden asset start with the leader?
Imperial
Ohio
(Oldest House in AmericaSpecializing in I
■
since
,
nor-
one?
scratch
our
J
In
best?
'
and First National Bank of
REctor 7-1737
ODD LOT MUNICIPAL
like
well meet the above requirements
LEBEIMTHAL& CO.
-
Y. City
Canada 3s of 1966/61 which, payabl<? just in Canadian funds are
cun^ntly selling at about 94 fa to
be
years;
first recommended it.
Bank
135 BROADWAY, NEW YORK 6.N.Y.
of
t/ortfolio ...V
is
$2.32 in
dividends
1951.
"*»■
moderately
Liquidity — cash
and
governpriced in relationship to actual
ments: $111,000,000 vs deposits of
present value and be something
which 10 years from now, if it $159,000,000 or 70%.
Average life of -governments:*
happens that you haven't seen the
one
year,
nine months, 10 days
person in that length of time, will
to
maturity or 11 months, 24
probably be selling for substan¬
tially more than it was when you days to call date—and just com-
buy
Birmingham, Ala.
Mobile, Ala.
,
obtain ?'a * slice"
with /the size of
has had the
in 1951.
and
value
the
over
MUNICIPAL BONDS
of
yield
this
-
NY 1-1557
New Orleans, La. Direct wires to
word—Canada
per,
hum—what's
about
twice
serves)
the funds
on
is—ho
Book
yet
increasing
We will
the
one
in size
12th
conservative yet give
return
At
point, -if
bank
of
and
have growth possibil¬
not be speculative;
reasonable* possibilities
of
ities
Bank
Er.ch.anae '
York 4, N. Y.
HAnover 2-0700
of
Exchange
:
•
one
-
about
other
invested;
77
A*
each:
$1
Curb
W. WALLACE TURNBULL
-
payable
25:
the current a
"
reaction
—as
:/
;
reasonable
you
stock
National
Canadian Secwrities
the .lr*The seCurity I
<om
for
been
22
around
Growth—from
anything managed by humans can
It must be
capital
Stock
York
a
to
But
annum,
remarkable
so
of things can
things
time.
has
f
quarterly.
At this
you
over
a
period of
Consequently your choice
be as nearly foolproof as
other
Dan River Mills
when
cents
the
First
The
60
New
25 Broad St., New
Akron, Ohio,
through
the total payment,
share and the rate
on
about 4i/2%
happen to securities as well as to
Commonwealth Natural Gas
being
the person patience to read this far, the
two
or
all know, lots
we
as
guidance,
not see
may
or
may
Industries
Furniture
Bassett
ular
in
shares
held.
a
per
market
•
American Furniture
1949
cents
a'
be
?
share
•W. F. Kurtz
because
not
about
recommend
was
rights to
$20 per
at
share
new
f3
cn
you
really
rights
one
the old
of
cost
New York
Members
the;,same .Wood, Gundy & Co., Inc., N
given
shares
•
50 cents
was
This
of
paid
was
At
were
the
of
of
bonds.
do
Steiner, Rouse & Co!
=
large piece
Dividends on the capital stock.
real--.'estate (yes—just 3,845,144
were initiated m 1939 aUthe
rate;Squape miles) " the average in°f 40 cents per-share per annum.
vestor wjix inquire how he may
recommend?"
Trading Interest In
they
govern-■
What
2-7815
New York City.
27,
and
of the
shareholders.
two
other
t
m e n
5
value
dividend
buy
put
than
YORK
NEW
shareholders
time
good
security
Exchange
New
BROADWAY,
120
to
some
Dec.
dividend
stock
a
par
stock
the
"I
-saved
like
into
V
.
Wallace
Gundy & Co.,
(Page 2)
Turnbull, Wood,
; Inc.
capital.
changed from $5 to $10 and
25%
which I would
frfc pONNELL & TO.
the
to
the
was
thousand
f
dollars
retired
were
1947
1951
couple
a
In
paid
or
friend:—
Bought—Sold—Quoted
Canadian Securities-W.
been
since
remaining
The
three shares for each 37 held
question asked of
acquaintance or by
casual
less
o
1946.
or
more
some
Since 1917
in¬
various
at
t0 a
which, howof the
has
which
off.
debentures
regular
our
Rights & Scrip
paid
the
new
a
the
in
us
business
times have
Specialists in
of
and
Louisiana Securities
proprietor of W. F. Kurtz & Co.,
Cleveland, Ohio. (Page 2)
liability
a
Alabama &
and
Members
The First National Bank of Akron, Ohio
5
not
was
Bank
1920
vestment
1.
to be, nor
sell the securities discussed.)
to
£2 at'h„at timte was
$1,000,000
Proprietor of W. F. Kurtz & Co.,
Cleveland, Ohio
Broadway, New York
BArclay 7-5660
FISHER
WILBUR
Corporation
120
they to he regarded,
are
Thursday, March 13, 1952
.
Selections
The First National Bank of Akron,
Ohio — Wilbur
Fisher
Kurtz,
intended
not
are
.
Week's
Participants
Their
of experts
group
advisory field from all sections of the country
reasons for favoring a particular security.
(The articles contained in this forum
$4.40 Conv. Pfd.
I.
different
a
This
Forum
participate and give their
El Paso Natural Gas
W.
Security I like Best
.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
12-Year Performance of
35 Industrial Stocks
BOOKLET
,»
William
with
S.
Welch,
associated
Tucker, Anthony & Co., New
Yurk City, .passed away March 8
/
ON
William S. Welch
.
at the
age of 53. *, /
••/..'
REQUEST
-
National Quotation Bureau '
Incorporated
46 Front Street
.
/'*
'•
New York 4, N. Y.
Volume 175
Number 5098
.
.
The Commercial and Financial Chronicle
.
*
,
(1075)
I
•
.
3
LETTERS TO THE EDITOR:
INDEX
Rep. Vinson Changes Mind
And Drafts New UMT Bill
Chairman
working
on
International
—Felix
reported
is
designed to eliminate objections
publishes more letters
measure
new
Commi'.tee
Services
Armed
of House
"IlCHTfnSTEin
Articles and News
Price
Edgar
AND COMPANY
Page
Stabilization—A Hoax
Wormser
THE
Cover
GREATEST SHOW
Spring Income for Bondholders—Ira U. Cobleigh
4
Fear of Deflation Hits the Stock
4
ON EARTH!
vciced in House debate. The "Chronicle"
elicited by
Dr. Neil Carothers' article in issue of Feb. 21.
According to a Washington dis¬
patch,
published
in
the
New
York "World-Telegram and Sun,"
on
March
11,
Chairman
Carl
Vinson
(D., Ga.) of the House
Armed
drafting a new Universal
tary Training bill.
As
noted
in
found
know, I
myself
in
March 6, the House last week
the
Mr
measure.
he
then
would
Vinson
House
at
is
UMT again
However, he
to
now
be
convinced
indignation
has
members
Congress
of
their stand.
Mr. Vinson's
the
its
two
publishes
comments
rothers'
views
"UMT—Why
in
Ca-
to
'
his
Honorary Pallbearers!
mistake
am glad
Senator
hot
to
Carothers'
SEC
published it.
UMT
rothers.
I
that
should
we
•today
interest
the
by Dr. Neil Cacommit
article)
Announces
Carothers'
Dr.
____
this
go
sure
on
some
to
come,
I
that
be
Rules
on
Underwritings; Favors Frear Bill
of
If
it,
(Boxed)____
selves
I
re-
Robert A. Taft
5
our¬
now.
like to
make
regular
be certain that
reduction
a
possible.
army
and
.
the
of
if
Carothers' article on Uni¬
versal Military Training sets forth
against its adoption.
Congressman from Ohio
U. S.
many
the
ing 10
the
ticle and he
for
the
on
UMT
some
credit
[Con¬
refers
House
to
the
March 4 to recommit
bill
Services
take
yesterday.
Ayres
gressman
vote
can
vote
back
batch
Funds
&
much informa¬
modus
operandi.
activity
and
or
instructors
12 hour
or
and
vigorous, fast-mov¬
a
had
a
Our
eliminated
day but Sundays while
This, obviously, would
every
camp.
eliminate all
ing
Our
ing,
more
procedures
are
the
the boys
more
Continued
Albany
•
Boston
•
Private Wire
ST., NEW YORK
24300
Chicago
to
LOS
•
Exchange PI., N. Y. 5
47
Reporter's Report
Reporter
Prospective
44
Security Offerings
Public Utility Securities
•
Air Products
21
Railroad Securities
23
/
Securities
The
41
,_____*
Collins Radio
2
Like Best
Security I
Baker-Raulang
___!— 21
!
Salesman's Corner
Securities Now in Registration
on
page
Washington
4,
N.
Schenectady
.-
CHRONICLE
.
B.
REctor
HERBERT
D.
Patent Office
New
York 7,
2-9570
N.
SEIBERT,
•
1-5
Worcester
Subscription
Publisher
Subscriptions
13, 1952
Other
and
Other
Chicago
city
news,
'of
Offices:
3,
111.
135
South
La
Salle
St.,
and
States, U.
Members
S.
of
year;
in
rate
of
per
$48.00
$52.00 per
per
year.
Record
—
Monthly,
(Foreign postage extra.)
account
of
exchange,
the
fluctuations
remittances
for
made
in
New York funds.
THEODORE YOUNG &
40
in
for¬
eign subscriptions and advertisements must
be
Bought—Sold—Quoted
year.
Publications
Quotation
per'year.
Note—On
the
(Telephone: STate 2-0613);
Cahaaa,
Countries,
Bank
$30.00
clearings,
etc.i.
United
in
Other
Thursday (general news and ad¬
vertising issuet
and every Monday (com¬
quotation
Rates
Possessions, ^Territories and.
Pan-American Union, $45.00
Every
state
Works
1879.
President
plete statistical issue — market
records, corporation news, bank
Whitin Machine
Febru¬
second-class matter
as
ary 25,
1942, at the post office at New
York, N. Y., under the Act of March 8,
to 9576
SEIBERT, Editor &
DANA
Y.
B. Dana
Company
;
Reentered
Publishers
I)ANA COMPANY,
Place,
Park
Eng*
Stromberg-Carlson
1952 by William
JCopyright
t.
Reg. U. S.
C.,
and
COMMERCIAL
FINANCIAL
E.
Gardens, London,
land, c/o Edwards & Smith.
Drapers'
1
Weekly
Dominion
Y.
Di-Noc
48
HovingCorp.
Twice
Thursday, March
CROW ELL, WEEDON & CO.
ANGELES, CALIFORNIA
You
and
37
Y.
N.
38
(Walter W'hyte Says)
Tomorrow's Markets
Dictograph
5
Industry .J.. J
The State of Trade and
WILLIAM
TELETYPE
•
Glens Falls
22
Governments
on
instruction in draw¬
French, ball room danc¬
and kinderd subjects.
The
rugged and fast moving the
room
Members New York Stock Exchange
HAnover
40
Teletype NY 1-1825 & NY 1-1826
5
nearly all, "waiting around"
Spencer Trask & Co.
TELEPHONE
MACKIE, Inc.
HA 2-0270
day program
been
PREFERRED STOCKS
BROAD
18
Bankers
Observations—A. Wilfred May
25
25
Singer, Bean
28
News About Banks and
WILLIAM
t
34
__J
NSTA Notes
The
specialized in
40
Indications of Current Business Activity
Mutual
Published
have
7
later than Dec.
of
corps
Committee.—Ed.]
For many years we
Ahead of the News—Carlisle Bargeron
could
Armed
the
to
and
Dehydrating
later than
not
next
not
Alfalfa
18
boy reports Jan.
a
seen
which
from
in
Corp.
8
Lang
right after July 4 and
leaders had
all,
Development
Research
surprising amount of strictly
ing
of the members of
Congress read Dr. Carothers' ar¬
I feel
H.
periods. In short, take each batch
and keep them at the double dur¬
HON. WILLIAM H. AYRES
*
Dealer-Broker Investment Recommendations..
could be crowded into five months
Secretary of the Treasury
case
20
8
From Washington
home
about
A
Dr.
good
48
—-
to the date
military information
a
Shelf.
Book
Securities
National
The
haven't
tion
,
SNYDER
HON. JOHN W.
v
Man's
22
Stocks
Einzig—"The Hard Money Policy in Britain"
C.
say
goes
15.
I
Angeles
Kerr-McGee Oil
"
sent home
15.
Los
'
.
Coming Events in Investment Field
I have an idea that
be done relatively
can
then report
be
and
Cover
and
reporting
Let's
June
Teletype NY 1-3370
Associated
from
of
job
way.
Army
would
*
•
Canadian
half
discharge.
the
officers are in good
faith when they claim that UMT
the
.t
Business
economically if it is planned that
army
would
.
Insurance
and
Bank
over
date
the
of
Broadway, New York 6
the
a
months
a
Reilly & Co.
Philadelphia
re¬
not
and
five
Request
Regular Features
"■"■As We See It (Editorial)
months'
still,
rather than to
^commit
61
idea or, better
ducingthe
standing
20
.___
of
like
I
on
Direct Wires
adopt
we
six
pro¬
of
gram
J. F.
11
cruits goes out.
UMT
general
Prospectus
10
BO 9-5133
present
providing
un¬
part
as
Proposed Broker-
it
method
and
dertake
Rights
Incorporated
until
the
years
to
&
5
Well, Let's Get At It!
de¬
ferred
-
would much
prefer
Stock
question.
certainly
am
have the draft
for
3
_
Dates for Hearings on
it may
through, I
will
will
we
Neil
appar¬
glad
Undoubt¬
edly
on
Edward McCormick, Curb Exchange President, Urges Easing
ar¬
cold
^and
the idea
training.
tary
(More letters
Text of IBA Memorandum Condemning SEC Fee Proposal
that I should
having blown
ourselves
uni¬
i 1 i
m
Cover
__,
Electric
opinion,
an
Ohio
have opposed
to
versal
Texas Eastern
,
Dealer Fees, etc
LANG
General
not
am
Since
from
with
read
5jS
(Editorial)
ently
on
14
Transmission*
■
Company, New York City
Relative
ticle, I
have
■,
.
Rep. Vinson Plans New UMT Bill
that he
see
this
H.
Vice-President,
article
HON. ROBERT A. TAFT
I
Corporation*
Planning—Homer Fahrner___ 14
sjt
'
'
argu¬
you
CHESTER
have
article
Schering
,
•
a
able
that
■'
.V
House Values Today—And Tomorrows-Albert W. Lockeyer__
it
wrote
and
;
?.
■
Next Step Forward in Formula
,
a
Feb. 21:
S.
13
have
be
and I
Mistake,"
our
issue of
Is
U.
Why
that
Thomas
Norman
below
Dr.
on
in
It
appeared
which
Savings in Today's Economy—Elliott V. Bell
JV
preceding issues,
"Chronicle"
additional
I
grave
ment
in
As
Dept.
WHifehall 4-6551
12
Mis¬
a
would
bill,
vote.
Telephone:
arguing
House
another
Securities
St.
CASH!
STREET, NEW YORK
-
also
Presumably, he will hold
hearings anH the"
for
t
been
committee
back
a
—
Is
many
new
Wall
into
12
America at the Cross-Roads—Theodore G. Gronert_____
article,
s
take."
eliminate many
objections voiced in the House de¬
UMT
h
p
i
It
it is claimed, will
bate.
m
h
to
change
to
WALL
99
at
turn
9
Foreign Economic Policy—George A. Sloan
Stressing Income from Mutual Funds—Eugene J. Habas
ically endorse
public
forced
is,
pleasure that I
this ses¬
reported
that
OBSOLETES
Obsolete
6
A Business View of
CarIt
"UMT
consider
sion.
6
The Stock Market Outlook—S. B. Lurie
however, with
of
re¬
stated
then
the
ask
not
Gerard
B.
99
disagree¬
others.
UMT
pending
,—Victor
,
daily
ment with Dr.
Neil
e
jected
-
..
sharp
See
The Business Temperature—Hot and Uncertain!
often have
very
Mili¬
"Chronicle"
the
New York City
As you
Performances
THOMAS
is
Committee
Services
NORMAN
Market—Roger W. Babson__
Exchange Place, New York 5,
WHitehall 4-2250
CO.
N. T.
Teletype NY 1-3236
4
The Commercial and Financial Chronicle
(1076)
I
lion
well
gardeners
improved hybrid—
into
common
bit
today
about spring
reaping;
there
is
one
other
types of
Mr.
Babson, ascribing recent break in stock prices to fear of
inflation, reviews progress of cheapening of the
dollar. Says investors are drugged
by illusion of prosperity,
interest
tonic
after effects of
reductions, with
effect
balance
on
and Wall Street is
sheets.
the
For
bank¬
into
railroads
ruptcy courts.'
in
As
The
1951
dollar
is
has
definite
no
and
government),
schools
colleges, hospitals, churches
and
the
War
have
I
inflation
brought the
valley.
given
arbutus
50
the
Ira U.
Railway
Income
of
is
It
I
are
Central
value
Georgia 4Y2s paid
of
World
bond interest
is earned
twice.
listed
on
the New
anc( bids fair to
total
4V2s
Seaboard
0n.
last
interest
annual
basis,
million.
$700
some
a
back
now
year,
sell
at
of
is
1933.
only
compared
Roger W. Babson
$77 million of prior securities.
worth
with
the
1939
Of
these, 15 issues pay annual in- 941/2 and are protected by earn- Current earnings are covering all
dollar. What
terest, if earned, on April 1, and ings covering total annual inter- interest,
fixed
and
contingent, caused these changes is beginning
13 on May 1. The labor saving ap- est
requirements of the road 2.65 about twice over.
to bother Wall Street.
peal of Income Bonds must thus times. Nobody is worrying about
The present downward cycle of
Milwaukee
is
an
impressive
be apparent to all—a trip to the the
18% cumulative feature here,
property, operating 10,670 miles the dollar started in 1933 when
vault only once a year for coupon- and the bond is so
classy that it's of road from
Chicago to Puget President Roosevelt depreciated
clipping purposes, and a much traded "and interest."
Rock IsSound.
Traffic is nicely diversi¬ the dollar by lowering its gold
lighter attack of that occupational land Incomes were called for refied although earnings are impor¬ content, in order to try to drive
disease of bondholders, the caldemption.
tantly geared to agricultural con¬ prices up in the depression.
The
loused thumb!
g00 Lme 4s of 1991, one of the ditions in the northwest, which Gold Reserve Act of 1934 cheap¬
These "Incomes"
are
really a few not enjoying any cumulative create corn, wheat and cattle go¬ ened the dollar by 41%. At that
special breed of security. They all feature, have been reduced 30%
ing East, and products of manu¬ time the dollar was worth ap¬
children of reorganization and
are
fund purchase since facture heading West.
are junior in lien only
Under present foreseeable
sinking
by
refinancing, and although most of
them have been actually paying
interest regularly for some
years,
with
few
exceptions, they sell
1944
and
to $6,200,000 of 1st mortgage
Bonded
below
"flat" (as do defaulted securities),
For another thing,
they solve
$7,000
earnings
your
reinvestment problem quite nicely,
Chicago Great Western 4V2s ma-
were
a
cover
only
road
is
con¬
4V2s. ditions, Milwaukee "B" 4V2s should
well be able to pay regularly.
mile, and current
Chicago, Indianapolis & Louis¬
total bond interest ville 1st Income 4s now cover
times.
three
around
the
of
debt
proximately 75 cents when
If this
issue
their
interest
thrice
They
over.
"fixed interest" bond
a
enjoy a first lien on all property
outstanding amount owned. Debt per mile is reason¬
ture in 2038, New Haven 4Y2s in
and coupon rate, and not tagged able
($11,700). The
541
miles
2022. and Gulf, Mobile & Ohio 4s
as
an
"Income," it might sell as operated connect Louisville and
in 2044. If you have a yen for much as 10
points higher in the Indianapolis
with
the
Chicago
long-term
bonds,
these belated market than its current 63. In- area and derive
important traffic
terminal dates should
satisfy you! comes have a tough time living interchanges from the Louisville
Another point of interest about down their humble origins and and Nashville and
the Southern
Income bonds is their slavish de- early disfavor, even though they
Railway, which roads, before re¬
votion to fashions and modes of have now become quite respecorganization in 1946, shared joint
their
own»
For
some
so
into
same
instance, 17 issues table vault tenants,
interest at the
41/£%. Nearly all of
pay
tailored
the
of
their
rate—
same
control of the "Monon."-
Here's
particular account for the definite and visible gage, of
,
them
Four
things
have,
indentures, improvement
in
in
investment that
the
a
a
bids
clean
cut
modest
fair
mort¬
you
on
They
Rate
Maturity
Lehigh Valley "E"
4%
Chic., Milw. & St. Paul "B"___4V2
Cash
purpose.
Date
About
Yield
protected,
in
are
a
a
little better
market
May 1
66y2
6.75
than
2044
61%
7.25
since
65
6.95
60
7.50
usually inject
buyer into the market.
66
6.00
Baltimore & Ohio
4%
2010
Chicago & North Western
Chic., Ind'polis & Louisv
41/2
1999
1st 4s
1983
Apr. 1
FOREIGN
some
decline,
liens,
fund
operations
one
fairly steady
Remem¬
ber, too, current purchase can
bring you a whole year's interest
in either three, or seven weeks.
Spring Income, that is.
Crowell, Weedon Adds
(Special
EXCHANGE
COUPONS
Serving banks, brokers
and
to The Financial
security dealers
staff
of
Crowell,
Weedon &
Co.,
650 South Spring Street, members
of
the
Los
Angeles Stock Ex¬
change.
He was formerly with
Morgan
&
Co., and
Edgerton,
Wykoff & Company.
Albert
A,
de
Jong
&
Co.
(Special
WALL
STREET
Telephone HAnover
2-5590
to destroy the capitalistic
system is to debauch the currency.
NEW YORK 5, N. Y.
Teletype NY 1-1401
LOS
to
The
Financial
Chronicle)
ANGELES, Calif.—Thomas
R. Piersol has become affiliated
with Francis I. du Pont &
Co., 722
South Spring Street.
By
a continuing prooess of infla¬
tion, governments can confiscate,
secretly
unobserved"
and
its
.
"This
attack
Two major
labor
port.
scares,
.
.
.
object
of
hatred
leaders
and
have
demands in
wage
in
the
man-hour.
erished.
the
real
value- of
fluctuates
month
.
.
six
out
of
17
Street
and
.
currency
all permanent
...
5 MINUTES
FROM WALL ST.
N. Y.'»
HH
largest Hotel
offers foremost
banquets
meetings
making
office parties
in¬
an
output
per
Outstanding
have
supports
we
7th
boom, only
a
support
crops
small
or
1950, when
were
is
realizing that this
prosperity
is
one
of
of
proceeds,
the
sup¬
selling above parity. These sup¬
ports are undermining the dollar
because they strike at food prices.
kind
masses
impov¬
wildly from month to
of
pressure
of
excess
in
the
As the inflation
con¬
price
been
work
Price
by
whom the inflationism has
facilities for
Through continued
labor
ex¬
isting
corporations.
Those ■ to
whom the system brings windfalls
become profiteers who are the
contributing factors
unions
savings
security but at
confidence in the equity of all
undermining the post-war dollar
are
im¬
against
strikes not only at
char¬
era,
shortages
buying
tinued the spiral.
an
portant part of the wealth of their
citizens.
and
Ave.
values-for
large
groups! Clark St. sta.
IRT subway
in hotel.
Telephone MAin 4-5000.
'
HOTEL
st. George
Clark St.
Brooklyn, N. Y.
fling & fling, Inc., Management
"make-believe."
A little inflation
may seem like
good idea to some of our eco¬
a
nomic planners.
It
is
of
more
an
opiate than good economic sense.
Cheap money at first deceives
people into thinking they
ter
off than
they really
GULF SULPHUR
bet¬
CORPORATION
The
are
are.
OF DELAWARE
more
of it they use, the harder it
is
stop; and once
the aftereffects
to
stop,
try
you
trous.
Recognition of this is a
primary cause of the recent break
in
stock
prices.
Although
that
various
have
kinds
been
of
security
hardest
old-age pension plans
value
BOUGHT—SOLD—QUOTED
Prospectus
on,
request
Wall
Street wanted inflation two
years
ago, it now is frightened of it.
The
10c par
to
disas¬
are
hit
are
PETER MORGAN & CO.
31
Nassau
Street, N. Y. 5
Tel.: DIgby 9-3430
Tele.: NY 1-2078
(both pri-
LAUGH AND GROW RICH!
Are
leigh,
and
wisecracks?
former
of
sound
selliner
He
was pre¬
viously with Shields & Company.
His
a
financier
prosperous
sense
with
book,
brisk,
fun
Ira
and
new
fast-
keep
For
you
"on
to
paying growth
opportunity in Crude Oil
YOUR
how
the way
on
request
to
up"
in Cadillacs.
postpaid copy, just mail
$2.
to
David McKay Co.,
Inc., 225
Park
Avenue, New York 17, N. Y.
(All your money back after five
days
if you are
willing to give up the book.)
your
A dividend
Information
are
guide
COMPANY^
OIL
class "a"
Cob-
present
business, mixes
in his
"EXPANDING
witty
pick stocks that
may
^SENECA
book
wisdom
head
looking for a short easyon
investments, full of
you
to-read
INCOME."
Francis I. du Pont Adds
1
37
by
cheap
way
Furthermore,
and
Community
Chronicle)
LOS ANGELES,
Calif.j-Chester
M. Fields has been added to the
SECURITIES
goods
exalted
more
sinking
acterized
by
wages,
goods
the post-World War II
Wall
2003
Apr. 1
May 1
Apr. 1
goods and services.
such that
Chicago & North Western strengthening the liens and bet- Northern Pacific Prior Lien 4s out
4^s, 13V2% of principal could be- tering interest
coverages of most of anyone's safe deposit box; but
come
an
accrued
obligation, but outstanding issues. After all, if if the desire for yield is para¬
no
more.
This sort of gimmick
you could buy in, and cancel, a mount, and too great insistence on
was no doubt inserted
lest a road $1,000 debt for
$600, you'd jump solid investment quality can be
roll up, at any
time, a staggering at the chance, wouldn't you? Well, dispensed with, then these In¬
liability for unpaid interest, thus that's just what the railroads have comes may well serve a useful
various
services, and the shortage of such
in the midst of
sue,
Price
for
been
is suggesting that items
above list should nudge
Payment
demand
the
by
accelerated
high
were
one
the
II
interest
original $7,613,800.
No
strong
War
through
railroad
status of Incomes.
(1) Restored faithfully, and to become a stead¬
they skip interest, in a railroad earning power during the ily better bond as time, and the
year, they'll make it up to war
and
since Korea;
(2) Im- sinking fund, operate. Less than
when
earnings fatten up. proved railroad rights-of-way and $6 million are now extant out of
an
World
pay
sort of cumulative
provision
Eighteen separate issues have hit
equipment, plus heavy dieselizaupon a three-year pile-up period
tion; (3) Higher rate structures;
for interest.
Thus, on a typical is- and (4) Substantial sinking
funds,
1913.
inflation
little
to
that if
bum
pared with the 100 cent dollar of
crease
first
com¬
evidenced
Keynes, wrote shortly after World
War I, "Lenin said that the best
79
53 cents when
$180
tragedies than
is
money-inflation philosophy. They
it effective dope.
The great
Englishman,
Lord
M a y n a r d
the
to
in
cents
This
last
infla¬
find
of the thirties
value
more
at
that
Communists resort to the
cents, while
raised
believe
Funds.
59
the depression
over
creates
year
took
to
Investors
to
deflation.
I
m^et, on a regular share with $48 million of "A"
interest from now 4V2s, a position following the lien
separate
in
back
like.
come
the increased demands made each
Today's dollar
36
now
of
off
total
in
War
deflation
it
tion
Post-
Milwaukee "B" 4V2s, outstand¬
ing in the amount of $35,405,700,
believe,
York Stock Exchange with
par
selves in the last half dozen years.
Bond
which,
issues
Cobleigh
splendid account of them¬
a
1913
cents
1920.
most Income
and
vale
dollar down to
amount
the lily of the
with
the violet, the
only
and
set for annual sinking funds, its
bonds, although quite
bond purchases have been most
unimpressive at birth, and lightly
held
by the more conservative impressive. The operating condi¬
arbiters of finance, have actually tion of the road is excellent and
season
worth
38 cents when
compared with the
1913 dollar of 100 cents.
World
these, the Lehigh Valley has
already been referred to. Although
road
to shudder when it thinks of the
ultimate outcome.
Of
record, however, this
matter of
a
beginning
bond
yield-minded
lawyers
switch
that
fruit
all)
at
No
By ROGER W. BABSON
have so nicely those traditional virtues of the
termed "events of default"—legal good investment—safety, market¬
jargon for the monkey wrenches ability and yield.
traditionally
(if
million
idea
one
delphia
which
bears its
Frisco,
$30
millenial
by
variety of
plant in the
garden of fi¬
nance
and
in view—to avoid, buyer, I have set down in the ac¬
maturity, "iffy" in¬ companying table,, values in this
terest payment, and a modest rate, field which impress me as reason¬
judicious
embodiments
of
the incidence of what the Phila¬ ably
with
since
The Stock Market
Seaboard, which
million,
converted
common.
their
above was built in
upon
has
debt and
touched
Not
Fear oi Deflation Hits
three
past
corporations have, in recent years,
enjoyed so favorable a climate for
In any event, every one of the
peculiar traits of Income bonds
planting.
$12
which
to be perverse, however, I want to talk a
spring
in Incomes;
retired
placing
dividends
on
miles into the future,
all agog over
now
are
suburban
as
the
retired'
"Expanding Your Income'*
A highly seasonal treatment of that much
the Income Bond
in
in Lehigh Valley, which has
(since issuance) $17 mil¬
years
By IRA U. COBLEIGH
as
Thursday, March 13, 1952
.
Look at the financial
improvement
Spring Income for Bondholders
Farmers
.
*
been doing.
Author of
.
GENESEE VALLEY
SECURITIES CO.
Powers
Bldg., Rochester 14, N. Y.
Telephone LO 3190
:
Teletype RO 87
r
Volume 175
relations
between
creditors
dered
Number 5098
.
.
debtors
become
The Commercial and Financial Chronicle
.
and
disor¬
utterly
that
so
legitimate business
degenerates into a scandal and a
lottery.
.
/F
dollar
really
are
Street
is
when
State of Trade
business
to
shudder
the
ultimate
beginning
it
Wall
prosperous.
thinks
of
outcome!
Observations...
Output
Trade
Commodity Price Index
Food Price
Auto
and
Industry
<
By A. WILFRED MAY
Index
Production
Business Failures
Short Selling De-Glamorized
During the past hundred
For "Fees"
Chairman
Hearings
C.
Donald
Cook
of
the Securities and Exchange Com¬
mission announced
The increase in total industrial
production for the country-atlarge last week was very slight, b£ing the second consecutive week
to register progress.
Compared with a year ago, it continued to
be about on a par with the high level of production which pre¬
had
Commission
received
several
re¬
quests for
postponement
March
the
of
14, 1952, hear¬
ing
they
Title
the
of
In
fices
Appro¬
priations
Donald C. Cook
is
that
various
interested
have
already
arranged
as
likely
persons
to
attend
March
14 hearing, Chairman
reported, the Commission
as
being 13%
ended Feb.
so
16 reported
far this year.
above the level of
However,
year
a
ago.
ing prices
now
Chicago, M. R. Gainsbrugh, chief economist
Conference Board recently stated that
temporarily and that no new round of spiralseems on the horizon.
He declared this month
the
first
anniversary of the
marks
Industrial
adding that "virtually all
industries
have
this
of
turned
defense
source
may
country's "inflationary lull,"
business indicators outside of defense
down."
Mr.
Gainsbrugh
asserted,
"the
suggests that support for private business
continue at high
levels for at
least two
Steel ingot production advanced to a new record level the past
historically high record level at 101.8% of capacity.
in
order
further
a
hearing upon the fee
proposal on Monday, March 31,
1952, at 2:00 p.m. Those who wish
to
be
heard
should
notify
Secretary
28,
the
on
the
later
not
latter
date
Commission's
than
March
Worst
of
don't
move
quickly to
more
"
all, the controls'
noose
restrictions
civilian consumption
on
of
strip
steel.
Another
operating its electric furnaces only five days a week
The furnaces were formerly operated seven
for the
past month.
days
week.
a
Beginning this week, still another mill
(a
non-
integrated producer) cut back from five to four days a week on
its sheet finishing facilities—also due to lack of business.
This
by no means exhausts the list
have been blamed on controls.
of production curtailments which
controls, product by product, as soon
-
as
market
<
The Administration will try to keep
controls authority on the
books as long as possible.
Because of this, they will probably
permit relaxation of restrictions on consumer use of easy-to-get
products, rather than lifting them completely out of the Controlled
Materials Plan, declares "The Iron Age."
The
steel
decontrol.
all
or the majority shares
in sound So.Calif. firms
This
is
Street, Los Angeles, Calif.
not
solicitation
an
of
offer
to
sell
or
a
offer to buy these
offering is made only
an
The
the prospectus.
in
every
the
short-
its
accentuate
fluctua¬
long-term
and
Or, contrariwise, does it further market
orderliness and actually reduce fluctuations?
Presumably
the
currently-investigating
tions?
explore
will
Committee*
Heller
A. Wilfred May
these
of
some
•phases of our investment mechanism.
Flood
New
A
of
Light
subject's specific questions as well
its broader economic implications is furnished now by the
Much needed light on the
on
detailed study, of 66 pages
issuance, for limited circulation, of a
as
into
well
as
two
earlier
those which had occurred during the
of the decade. Thereupon the project, under the direction of
Fred R. Macaulay and David Durand, in
consultation with J. Frederic Dewhurst, the Fund's economist, was
laboriously compiled since its initiation in 1938.
| ....
Messrs. Macaulay and Durand throw important light on the con¬
two of the Fund's experts
what actually happens in the SEC-and-Exmarket when short sellers are /particularly
troversial question of
change-regulated
active;
on
Industry officials were
angered last week by a trial balloon, believed to have emanated
from Washington, to the effect that steel wages would go up 18Mjc
while prices would be increased only $3 a ton.
Such a price
increase, this trade journal points out, would be less than half
what the industry insists it would have to get to cover a wage
parts have made no headway.
characteristics
basic
the
of
and
short-sellers
officials
are
against
a
wage
increase at this time and
dead set against agreeing to one unless they are allowed
a
price increase to pretty well cover the higher costs.
If the
stabilizers squeeze too hard, they could force a shutdown of the
steel industry, concludes "The Iron Age."
they
CANADIAN
are
Car
Only
Scapegoat Now
a
They have found that outbreaks of undesirable short selling
occurred rather frequently in the early days, with attacks on the.
consisting mainly of the raiding of some particular stock.
strengthening of Exchange policing and the supervi¬
1934, with its one-eighth up-tick rule since
But with the
sion of the SEC since
1937, bear raiding—Congressman Sabath and other demagogic
politicians to the contrary notwithstanding—has been rendered
virtually impossible. Confining itself * to the longer-term and
major cyclical movements, the study concludes that since May,
1931, short selling has not materially affected the extent of a major
decline or a major advance on the market as a whole.
Even for
short
as
as
periods, great increases in the size of the
short position were
likely to be accompanied by price movements that were upward
well as downward.
The collapse of the Kreuger and Toll
match
useful
with
empire
case
although the
famous
A
of Ivar Kreuger provides a
The authors wisely observe that
gigantic volume of short selling that followed the
and made more precipitate
suicide may have accelerated
subcommittee
As they
collapse, it did not cause that collapse.
\
★
suicide
the
study for our subject.
of
the
.
'
'
:
Committee
on
Continued
on
Interstate and Foreign
Aug. 24, 1951 appointed under the chairmanship of Hon.
page
39% below the 139,559 which
Delaware
from the 8-3,450 last week and
left
assembly lines in the like week last year, "Ward's Automotive
Louis B. Heller, "with
authority to investigate the Securities and Exchange Commission
cise by the Commission of the duties and functions granted to it
and the exer¬
by law. . . ."
Reports" discloses.
Corp.)
Two weeks ago
Common Stock
"Ward's" reported G. M., Chrysler and Studemight avoid shutdowns in March by way of a 70,000-car
baker
Federal
share
per
Copies of the Prospectus may be
obtained
from
your
Investment
Dealer or the undersigned.
permitted
production
"bonus,"
but
later
added
week
this
agency
stated
been operating a four-day week in
ment
quota limitations—returned to
that
Dividends, up
in the past ten years, have more than kept up
the rising cost of living. Report on request.
Since
Studebaker—which
had
1937
ment has
with California.
a
member of our Trading
maintained
a
this month, this agency reports, are shooting at
monthly production since last October.
Depart¬
y y
"
it stated, that it believes the industry will be
allowed to carry into the second quarter and future quarters
"any unbuilt portion of its allocations for the preceding quarter."
16(
market in size in "BOA."
February because of govern¬
a five-day week.
Continuing,
AIGELTINGER
SSank of Amrrira
that
"nothing officially has been said about March."
Last
World's Largest
"BOA" grows
Dependable Markets
Car makers
EST.
1938
•
&co.
Member Natl. Assn. Securities
52 Wall
Dealers, Inc.
St., New York 5, N. Y.
'
-
-
Tel.
their highest
DIgby 4-8040
It
cars
declared
the
industry* ik aiming to make at least 365,000
Dempsey-Tegeler & Co.
in March, the highest number
October.
Even
with
this
since the 412,000 produced last
greater March output, however, the
Continued
on
page
27
St. Louis
v.":
Los Angeles
16
Comm'"r-,'
production last week slipped to 84,350 autos, down about
2%
oil corporation
their
motives; on the size of the short position in relation to the mar-,
ket's movements; and on the operations of individual traders.
.,
increase of I8V2C.
UNITED-
Price $1.00
in
saboteur
market, has the short selling of stocks always
elicited a variety of diverse public reactions.
Does it tend to demoralize the market, and
the stock's ensuing
Steel
(A
Sabaths
Congressman
comparatively
tranquil post-Sec '40s and
'50s—the seller
of what isn't his'n throughout the years has
remained the inscrutable mystic of the Street.
And in its fancied specific effects on the
far, Washington's efforts to split the wage-price question
So
securities.
by
the easing trend of the market.
This big question is
quickly approaching its climax. The strike deadline is March 24
and the Wage Stabilization Board is hurrying its recommendations
in the hope that final agreement between union, industry and
White House can be reached before that date, this trade authority
notes.
PRIVATE INVESTORS
403 W. 8th
wage-price controversy is another factor slowing
agrees that a steel strike would quickly
Everyone
reverse
Harry & Myron Kunin
the
market
reaction
price
market
people feel that controls officials should make good on
conditions warrant.
j
by
wicked
years
•
integrated steel producers the hardest.
Steel
s
high
on
the
stock
break,
relax controls.
their pledge to lift
i
from
as
multiply if officials in Washington
1952.
wanted
1901,
praisal of the recorded data on short selling to find out the truth
about the short seller's responsibility for the preceding market
that vital
mill has been
postpone
of
corner
Age," national metalworking weekly. So far, losses aren't large
enough to affect the national operating rate much, but they will
controls,
hearing, the Commission will hold
to
not
However,
and
long a source of irritation, have become so
production is being lost, states "The Iron
Steel
ity
hearing.
battle
plus tables, made under the aegis of the 20th Century Fund.
Shortly after the 1937 market break the New York Stock Ex-,
change asked this research group to make an independent apt
additional time to prepare for the
determined
the
the
Pacific
archJesse
Livermore, excoriated by "the police" in the
post-1929 "Pecora" investigation, castigated
as
to accommodate those who desire
has
of
exploits of the Daniel Drews and the Henry
1870s, dramatized in the famed Hill-Harriman
glamorized in the personage of the
manipulator
of
our
zooming
'20s
vious week.
is choking small and nonLast week, says this trade
paper, one producer shut down two openhearth furnaces because
of a declining order book.
The company said military orders had
failed to take up the slack caused by National Production Author¬
Cook
Clewses
Northern
week, fractionally above the previous peak of last December.
At
101.3% of capacity, it was about one-half a point above the pre¬
The current week steel production is scheduled to set a fresh
Immortal¬
ized by the legendary
Congressional
years."
constrictive
Inasmuch
it
in the period
inflation has stopped
Act,
1952.
and
address at
an
of the National
In¬
dependent Of¬
output of basic materials
With respect to initial claims, they declined 15% during the week.
registration
plement
in the
12% to the lowest level
recorded
were
stretch-out
fees and other
V
unemployment
to have fallen
from
charges to im¬
Rises
sufficient to counterbalance declines in soft goods.
Employment continues favorable in the latest week with total
claims for
its
the imposition
time.
were
for
upon
proposal
of
that
at
armament
March 10 that
the
of Wall Street's history short
years
selling has been the most intriguing of all its activities.
vailed
SEC Announces Dates
the
Retail
investors into thinking
many
they
Production
Electric
Carloadings
profits,
plus
fictitious
inventory
gains,
plus inadequate depreciation
charges, plus the huge dollar sal¬
aries and consequent illusion of
prosperity have already drugged
too
Steel
The
.
Present
5
(1077)
Chicago
6
(1078)
progress could
The Business Temperature— r
Hot and Uncertain!
11
More
people had
they
petual economic
summer
is
or
entered
autumn
new
a
of
era
per¬
which
Businessmen
economists
and
in
they
ward
With
retailers
few
exceptions,
they
have
expressed
timism
the
on
outlook
high
of
op¬
for
a
volume
business
output
no
because
curr
it
duction
pro¬
is
pected
ex¬
in¬
to
in
crease
vol-
that
,ume, now
the
tooling-up
stage
n e a r s
c o
mpletion,
this
and
will
offset any de¬
cline in civilian demand that
may
of
the
surfeited
with most
consumers
types of merchandise.
I would not like to
argue that
business volume will not be
high
ici 1952, because I believe it will
be; but a longer view of the out¬
look reveals probabilities that are
less pleasant.
; r
■/
•
;
Most economists study the bar¬
ometers of
of
business; few make use
thermometers, Yet, therm¬
the
ometers,
which
merely
existing conditions,
record
forecast
may
the
longer run future as well and
possibly better than barometers.
When
the
records
not
thermomenter
100°
in the
require
conclude
that
the
near
the
peak.
forecast
a
likely to
to
wave
is
heat
for
of
July
person
If high
tures continue
in
shade, it does
astute
an
tempera¬
several
cooler
weeks,
weather
is
highly accurate.
prove
The business thermometer of in¬
.
dustrial
production—the
Reserve
Board
Federal
Index
has
—
climbed
steadily in each postwar
with the sole exception of
year
1949.
In
1946
it
170%
was
of the
1935-39
average and
in 1951 it
220% of this prewar level. We
'have been
experiencing the biggest and longest boom in business
Was
.
4
the country has ever known.
Have
we entered a "New Era" of
per¬
petual
economic
autumn
summer
or
is
approaching?
What
f
Many
observers
conditions
have
of
been
a primary postwar de¬
pression for years, and they have
been wrong.
But why have they
been wrong?
They observed, quite accurately,
a
primary
postwar
depression
after every major
war, in which
commodity prices slumped and
I
prod uction
i
prices
traditionally
because
war
on
farmers
tion,
in
wasteful
the
as
of
hand,
had
battlefields
became
Furthermore,
always
an
commodity
came
demands
other
soldiers again became
and
transporta¬
important factor
prices,
again
normal since facilities
be-
longer commandeered to move
troops and war materiel. Declin¬
ing commodity prices made it ad¬
vantageous
to
postpone
purchases.
*An
address
jTCiwanis
March
Consumers
6,
Club,
by
,
the
.
efforts
of
an
'se¬
rapid
Rea¬
and
monetization
thereby
prewar normal—and we can
™P?rtant, these items influenc-.
up" to
lower
checked
terest. N °.te
We
following
examples:
(!) Late
:
the
debt,
Even this forward step is going to
be subjected to a fresh challenge
to date.
What
have
have
been
changed
unlike
we,
the
the
factors
glamour—but
King Canute,
Will
the
Continue?
How
long the inflationary
taken
ly
into
Of
first
appreciate
of World
tion
underevaluated.
were
importance
to
ure
consideration original¬
which
or
uie
the
me
hands
nanos
nanas
of
01
me
the
American
American
-
The American people have seemed
to
eniov
xo
the
inflationary
enjoy
uie
lniiauonary brew
orew
the
con¬
perity.
sumption
How6soon they^wifl
in
normal
sion
of
Had
a
trade
and
plants to
the
cocted
of
Cult
the
great
production
required
to
struction
of
would
make
and
The
war.
amount
that
postwar
have
in
in
to
still
'dX Despite
real-
being
Washington.
determine
what
.
,
Hpnnt;it„
Th
to resurrect wide speculative interest in the stock market or re'
con-
inflationary psychology.
*
(4) Early in February, the news,
broke out into the open that our
stage
•
defense
hand_
ine nano-
of industries Wall Street has
0„t
randiriate<?
for
in-
face
of
the wide publicity.
newed
It is diffi-
at
ful
had
program
good
YearAll the evidence adds up to an
unmistakable conclusion: The economic environment has changed!
Note the declining trend of cornmodity prices during the past
several months. The fact that the
been threat
of
higher
steel
prices
or
in the party the fascination of im-
"pushed
the
good
been
de¬
of
the
bibing will end and the haunting
thoughts of tomorrow's hang-over
"stretched out" over a buy steel. The fact that consumer
longer period than previously had durable goods manufacturers are
will commence.
been
disruption
error
old brew is
aircraft,
gdRation 1thait the average family., JWgjJ
birthright is hard to say
We
know, at least, that the party conof tinues in full
swing and that the
same
the
sayings. DanK deposits
an
iyar~"a nev ?lgn recorQ' dXlu «"»
conver¬
these factors been
made, it would
have led to a better
appreciation
in
the textile, movie, whiskey,
.
and
record
production.
war
careful assessment
more
boom
<2> At the Fear end. competent industries etc. Note the sluggish
Th Hfi
-estimated that close to retail
trade versus record, high
autnqrities estimated inai ciose w
of raw materials, par¬ ize that the cost of
this brew is an given President Truman s budget.
ticularly metals; in the disruption ever-increasing
mortgage on their message in mid-January, it failed
of
The
re-'
foar million babies were born in
fail¬
distor¬
machinery, fertilizer industrieshours in-, to mention a few-versusa depres-
which
conditioner
productivity
and
unemployment in
New
,
Coast.
sion in
voters
voters..
voters.
the destruc¬
and
Lurie
syn-
soil
and
and
ste,ad °A
they have been drinking and are
magnitude thoroughly
inebriated
with
the
the
property
the
was
War II—in
of.
not
were
a
England versus
shortage of stenos in Wall Street
engineers
on
the
Pacific
a
stores
proc¬
Note the
Detroit
thetic
Hindsight being so much clearer ess will continue
is in the lap of
than foresight, we can now see
the gods—or, more accurately, in
certain
that
new
a
means
customers.
more
Contradictions
tions?
"Krilium"
of
Inflationary Process
learned
to turn back the tides?
factors
(D)
development
Have
groups
than the high income groups. For
Wall Street, this means a loss of
the
nounced
gets under way.
that
pattern?
.
income
higher base on which
industry can plan its production.
This because
these segments
of
the population spend proportion¬
ately more for goods and services
g^neral 1""
the
:
and
new
stories
were
"accord"
"grow
new plant capacity.
(C) In turn, the big boost in the
spending ability of the middle and
*lnancial pageRather, they
Paul
government
of
-
is far greater than the
ters *or the past 60 daYs- Equally
less abnormal
a
level
j
other words, the post-
deeo-
Senator
permitted
r
Only
20
soning by analogy, many capable
December,
analysts predicted that it would
in Washington next week as the
Monsanto
happen after World War II. Yet
Patman ' Committee investigation ' Chemical an¬
it didn't—or at least hasn't
underevaluat-
back"
Yet it must end—
around"
and "pushed
—
strike
a
hasn't set off
an
urge
to
—
indicated.
not
elated
prospects
over
of ob-
ing these factors was magnified even if the end is to be the hor-" < (5) By mid-February, the news taining more raw materials but
by the unusual amount of eco¬ rible catastrophe of astronomical came out in the
open
that the are talking about the need for
nomic aid afforded our allies and inflation
such
asGermany ex- ''hunters" for previously scarce real salesmanship. The fact there's
even our former enemies.
No na¬ perienced
after- the- first World raw materials were on the way been
spotty
price weakness in
tion
ever
before
had
been, so War—even if the end is to be the to; becoming "hunted" by sales- even the fast growing chemical
generous
in
wiping out' of the great middle men seeking orders.
giving
away
• its
industry; cellophane no longer is
treasure.
class, which invariably occurs in
(6) A few days ago, one of the under' allocation.
In
short
the
the final stages of an inflationary
A second major item
in pre¬
venting an early primary postwar hysteria.
>
;
: v
(
A further complication has been
depression was the program of "the
Administration in Washington; It added by World War-2V2.. Regafd.
exhaustively discussed the business outlook is under popular
redistribution of our national in- suspicion for the first time since
come over the past 20 years—the Korea.
fact that l out of 5 wage eqrners
* *
papers
,
,
is
safe assertion that
a
visaged in 1945
the
as
part
six
of
years;
no
one
en¬
fiscal policy; on
a
our
have
we
such
government
had
during the .past
Originally, in
fort to stave off
a
an
ef¬
prospective pri¬
increases
and
"to
spend
money
profligately for purposes
that can hardly be described as
fundamental and essential govern¬
ment
functions.
budgetary
The
deficits
resulting
increased
the
money supply, which heaped coals
on
the fire of inflation that was
raging because of war-born short¬
Even
ages.
quit
Mr. Gerard
Somerset,
buying
before the
Kentucky
1952.
the money
creased
as
this
was
supply
the
not
was
and
enough.
further in¬
Federal
bought securities
Reserve
flooded
the
country with what was, in effect,
printing-press
fortunate
line
on
a
fire
The
this
less of how
ent
is
got into
we
our
.
now
pres-
predicament, the United States
communistic powers.
that
long
so
tinues,
we
as
must
This. I
think,
should
do,
this
arm
we
It
war
has $5,000 and
over
whereas the proportion
in 50 in 1939. ;
confronted with the immi-
now
nent threat of full scale
with
•
■
•
,
^
income, ^Change
wasn't
'
1
.
1
to
will
regardless
meet
do,
of
my
book,
these
news
items
it; point to three general conclusions:
(a)
and
We're
in
a
period*,of
vast
distortions and contradictions; (b)
" what
The
™
^
-
Market Environment
in
market
environment
changed too. Sure stocks
popular
.
is*6bvious"\>'>7?hree G.eneral Conclusions
threat! con-"J In
more
—
has
are more
strongly held
—
than ever before in our history,
But—only a handful of stocks are
near
a,
their
large
1951-52
1951-52
number
lows.
highs whereas
near
their
are
Further
each rally
As Secretary Sawyer recently ob- has
found
fewer
stocks
being
served, the economy is in the struck with lightning — whereas
tial defense expenditures with the^throes of an inventory
adjustment;'each
decline
has
found
more
waste in government that we all
\c) On long range view, we're in stocks "falling away" for no apknown exists. Mr.
Irving S. Olds, a New Era of the "Fabulous Fif- parent' reason. February had five
Chairman of the Board, United 'ties.'" Let me tie-in these three times as
many dividend casualties
States Steel
Corporation, reports observations with the six news as a year ago—and only half the
that
Representative Clarenc e items mentioned above.
increases. In short the inflationary
other
consequences may result."
Yet it is hard to reconcile esseri-
-
-
Brown of Ohio has counted 75 different
government .bureaus that
deal with
transportation, 05 which
ciples
It
is
of
no
even
John
was
turned
the
war
that
were
Keynes.
when
from
which
sound
the
created
alleviated
country did not settle down
level
on
the
the heartiest dis¬
wonder
'
paste—they all
22 with insurance, 15
rim
uids
relations,
1
also
and
government money
pointed out a
r
the
to
a
future
a
unLTth^iun^sdktio^ofT^
"
-whr>
3.
Ci
sians
h,
Prp
are
r>
niTSinaoJ +
plotting a shooting
war
T^tZ°^h^L\h7nPr:ter
SuXif We ~ow6~o
long
as
the
communistic
Continued
on
markets. With the
profits
20
tax
heightening
pace
0f research, several
dollar
industries
jnto bejng next 5
'
new
will
ex-
the
bil-
come
'
years.
the
market
straight
animal
have
we
certain
basic
rule
which
no
as
a
whole
to
realities:
says
the
must
go
straight down. History indicates that there are only
up or
<B) °ur record crop of babies— Mew times each yeai] wh.en
and
increased life expectancy wise to be really active in the
due tc> the new wonder drugs— market. The security owner has
means rapid population growth in been displaying a new emotional
t 25 years
As it is
our
maturity an indifference to unPoPuMcn gata stace 1940
il
near-
certainties
which
previously
* d°uble the total P°Pulation of W°Uld haVe l6d 10 Semng'
Thus the question to be
menace
page
large today. If we're going to
recognize
There is
new
jjon
or
a salmon, swimming
'
at
tame
cess
Mr.
Federal agencies
that industry
create
93
week
mean
js developing new products which
£ housing, 14 with forestry, six
business
with
passes
cooked
have
Maynard
.
already
of control.
shortages in civilian goods
by
un¬
foreign trade, 34 with the acquisi-
wl
gaso¬
brew
should
stomach of
poured
which
witches'
fire
This
money.
practice
dangerously out
were
no
'
by
bought.
u
In e£f«c.t' °"r newspapers have Canada. In
been writing the best market let- war normal
Douglas, the Federal Reserve andT
pri¬
depressions.
+
(A) Krilium— Squibb's new urge to own equities which was
Through a benighted policy of
anti-tubercular
drug
American no prevalent in 1950-51 now is a
Commodity pegging the prices of
■
government
Cyanamid's new synthetic fiber dead duck!
fell sharply
compile statistics, 37 dealing with
securities at artificially high
or
Pepsodent's chlorophyl toothSuch is the nature of the beast,
levels,
disappeared and because
increased
farms.
t
the
had
supply,
,
declined.
to
postwar depression, the Ad¬
ministration undertook to foster
1 predicting
;
postwar
mary
led
**
.
as
into Uie red
bonds to recede to
traditional
mary
of the Future?
qualified
the
was
T
.
cre¬
which
of events that
quence
wage
business
'
This
year.
should be
•
Fur-
monetary field has some 'ving ttie trend
of sanitary been fortuu s u a •
;uy
nately restored. Last year, sparked
weren t on the
ing situation.
the
discov-
degree
were
mar¬
preliminary to major rally; and while it is not the time
the
bankroll," outstandingly attractive situations
the
in
New Era of research of*
a
Notes both economic and stock
"bet
to
being made to
the Federal'
are
supply
deeper
tom
date.
voter.
Government continues to
and
citizens
been
not
average
period of distortions
is in throes of inventory
a
ket environments have changed into declining tendencies. As
to market's future, Mr. Lurie maintain.", it is
sounding out bot¬
that is being
ruse
has
by the
the "Fabulous Fifties."
borrowed
future
a
accelerated
Weapons
because
at
White
pointing to follow¬
as
in
we are
contradictions; i (2); economy
adjustment, and (2) we are living in
collected
its
items
news
(1)
and
:,,
the money
had
or
purchasing power ; and'
the Treasury reached
an already deteriorat¬
dur¬
re
Victor B. Gerard
repay
the money
ated unemployment which further
curtailed
"Great
that
ther additions
their
wholesalers
the
of
it
Even today the
purchasing;
longer in the market. This
ing-
.
would
down¬
reduced
Market analyst cites recent
ing general conclusions:
cast
was
Curtis
&
Members, New York Stock Exchange
The government"1
it scattered
as
promise
a
er
stopped
manufacturers
activity
condition of
on
readjustment
of
prices;
quit buying-because
had
role
perpetrated
a
By S. B. LURIE*
Paine, Webber, Jackson
"some¬
nothing
from its citizens
wholesalers
and
the
ered
expected
of
to its citizens that it had
at hand."
because
practically completed their
prognostications for the year 1952.
secret
produces
Father"
peak, and have stayed there for prolonged period, but
have
The
been discovered.
approaching?", Mr.
near
Even
thing for nothing" had at, long last
productive capacity, along with wastes in government spending,
foreign aid outlays, and population shifts on future of our
economy.
Concludes thermometers of business have reached
"autumn could be
it.
The Stock Mavket Outlook
to
money
spent
businessmen,
who
should
known
better, sdid
not
staunchly resist the trend; rather
they cheered and urged its con¬
rapid
warns
>
-
have
Gerard explains why business depression did not develop after
World War II. Points out prospective effects of recent
all-time
De-
Thursday, March 13, 1952
...
some
tinuance.
we
more
spend—and
Treasurer, Commonwealth Life Insurance Co., Louisville, Ky.
Answering the question, "Have
be registered.
mand did not decline; it increased.
By VICTOR B. GERARD*
occur
The Commercial and Financial Chronicle
-
rJ
Kh e^isfsz.
decided
ItlysZ ll whather ^ is a ;atalyst ln
the offing which can change psy-
Volume 175
Number 5098
The Commercial and Financial Chronicle
...
cholbgy--or whether the tone of
business
will
news1
deteriorate
continue
*
'
.
*'
„v
■
,
is turn¬
ing out to be 1951 in
reverse. Of
recognizing the fact that we are
at, or near, the peak of the de¬
flationary impact of the govemrrient budget—that the World War
II
economy
won't be repeated.
But this isn't enough.
By CARLISLE BARGERON
-
see
which
it, the
campaign for Presidential delegates
which Stassen picked up eight delegates
at the expense of Taft, the.latter called Governor Dewey on the
phone and tdld him that if he expected to beat Stassen in the
Senator. On the
way c own.
second quarter for:
(1) There
But
natural processes
are
improvement at work now in
the depressed consumer goods in¬
(2) Each day, industry's inven¬
tories are
becoming better ad-,
justed to the. new concept of our
continued
capital goods
into
and
year
is
ours
Psychologically,
number of
Let's extend it."
He is quite sincere when he says he is
His entrance
Hampshire campaign would prove this.
"
^
t
in his"extreme-egotism, he thinks something
happen, perhaps a deadlock between Taft and Eisenhower, or
something out of the sky that will bring the nomination to him.
beyond the harm he
.■•The real danger in what he is doing goes
can oc¬
is
sometime in the second quar¬
cur
making Taft do to himself in the course of his having to com¬
pete with Stassen for the votes of the "gimmes," those who want
ter:
(1) By then, the shock of
first
quarter
earnings
exactly what they want. Apparently, we don't haye
enough of it in the election of our Senators and Representatives.
Bargeron
may
too, there are
why an im¬
reasons
portant market turn about
Carlisle
stalking horse for Eisenhower or anyone else.
"Undoubtedly,
economy.
a
a
in the New
managed
a
Presidents is
,
"
'"
'
"
'
*.
.
the
poor
In this respect he is
government to do something for them.
acetate
Phila.lnv. Women to
Hold
in the present campaign.
not
and remember that this is an elec¬
tion
even-more Presidential primaries and more binding
also, those who want'to'do'a Way with the electoral college
arfd have the President elected directly by the people. It will be
lost upon them because more demagoguery in the election of our
ones;
This explains more than any other one thing Stassen's activity
realistic-
be
spectacle of Stassen dogging Taft's tracks in the primaries
lost upon those who are advocating that vye
probably be
should have
"
to win the nomi¬
today because, of course, he would
have conducted a different kind of Presidential campaign and a
successful one. Taft didn't gain anything because Dewey's victory
in.Oregqn was such a shot in the arm that he got the nomination.
Although defense spending
to
on
was
Stassen, would be President
proving to be a leaky umbrella,,
it is expanding each month.
got
revived and he went
.
is
We've
This
will
forgiven Taft for having per¬
suaded Dewey to go out to Oregon ana go to
work. He thinks that had Taft kept quiet he,
late 1952.
(5)
advice, went out to
"whistle "stop," or rather,
He has never
high level
production
Taft's
a
Bob Taft is
country as a whole, because if he has to get the nomination and
be elected by outbidding a man like Stassen for votes, the effect
is :adverse upon all of us.
-
nation at Philadelphia. Conversely, it was the
end of Stassen's meteoric rise.
;
,(3) Current heavy backlogs al¬
(4)
Many political" experts1 had counted
took
you,
Grundy's attitude
.
"bus
was
defense program and more freely
available raw materials.
of
t
the
stop" campaign, defeated Stassen add
captured the delegation. The Dewey campaign
a
.
a
he
"But, I tell
a Socialist."
responsible for Taft losing about twothirds cf the Pennsylvania delegation which went to Dewey.
♦
Greater than the danger to the man himself, though, is that to
:
other'hand, Dewey's stock was
Oregon and made
dustries.
most insure
Grundy wiggled his finger in the face of another Republican leader
squeakijy:
him out of the race.
of
eve
•
running, like-a hquse afire at
the time; his breaking into.'Taft's,. stronghold
in Ohio had made a vivid impressjon upon the
can
One oT the funniest things I ever heard was at a reception on
of the Philadelphia Republican Convention when old Joe
.
the
and said
Stassen was
•.
really revive specula¬
tive confidence is a definitely im¬
proved business trend. This im¬
provement could occur late in „the*
J
forthcoming Oregon campaign, he, Dewey, had
better get out there and go to work. - \ ,***
catalyst
only
After the Ohio Republican
in the spring of 1948, in
Improved Business Trend Needed
I
attempting to pull Taft out of bis character and to some extent, I
afraid, he is succeeding, I am one of those who, knowing Taft,
,
and knowing, 1 think, what his election would mean, would gladly
: excuse his getting votes in any way he can. As the old
saying goes, '
I a man can't be a statesman without being elected, and he has got
(to be a politician to get elected. The danger to Taft, himself, how- '
; ever, is that if be is pulled enough out of character it will militate
against his getting the nomination. It didn't do him the slightest
j good in 1948 to come out for Federal aid to housing, which he did
after, so many of his well wishers kept pounding him for months *
to quit saying "no" all the time, to be at least a little liberal.
f am
Tax
inhibitions against selling*
Thus far, I think the market hasi
done a good job of readjusting it¬
As
Spring Dinner
will
hold
their
spring
March
17, at the Sylvania Hotel at 6:15.
The-speaker for the evening will
be Miss Audrey S. Armitage of
the
Celanese
Corporation.
Miss
Armitage
will
supplement
her
talk with a colorful display of
dinner meeting on Monday,
»
SAN
have
Kolb
R.
become
Davies
&
and
is in prospect—such
This announcement is under
'■
the
as
opening of new TV stations, rec¬
ognition that a big replacement
tire market has
(4)
Once
affiliated
that
our
into
tive
optimism
"sure"
will
and
Francisco
San
Stock
market
circumstances to he. construed as an
no
•.
steel
"burp"
will
the
stock
102%
to
commodity
in
the
reversal
a
is
definite
a
Common Stock
More immediately, the bull case
is more on the defensive than it
(Par Value 15^ per Share)
long time. The mar¬
ket, as a whole, is in the process
of "sounding out" the bottom from
which a really worthwhile rally
in the averages will take place. I
have been, and still am, cautious
a
-—for this is
not
bankroll,"
sive when
it
the time to
Price
to
comes
the
.
aver¬
and
"average"
1952
year,
go to the
will
;■
.
not
SA'N
an
•
,
.
'•
'
*
'
•
dealers
or
brokers
as
may
lawfully offer these securities in such State.
j
Merrill
Lynch, Pierce, Fenner & Beane
to The Financial Chronicle).
FRANCISCO, .Calif.;
are
Hannaford
fornia
*
•
a
Chester L. Domer and
McGuirk
Share
Prospectus may be obtained in any State in which this announce¬
ment is circulated from only such of the undersigned and other
risk-
be
.
Joins Hannaford Talbot
(Special
per
The
But it's always time to buy
outstandingly attractive situations
—for the rewards
$17.50
"bet
be very aggres¬
or
ages,
taker
March 11,1952
oration
,
prospect.
the
offer
ex¬
downtrend
has been in
an
1,760,000 Shares
ulcer, nega¬
"suspicious"
more
a,
believe
current
solicitation of
develop. A
operating rate
Our firm's
perts
or as a
....
operating rate.
(5)
offer to sell
of these securities. The offering is made only by the Prospectus.
any
can
worth
than
buy
now
&
Street.
previously
Mr.
Cali-
519
McGuirk
Victor
Drexel 3C Co.
Kidder, Peabody 8C Co.
associated with
Talbot,
with
—
Sariford E.
was
,
Eastman, Dillon 8C Co.
Troendle
Hallgarten 8C Co.
Lee Higginson Corporation
R. W. Pressprich 8C Co.
& co.
Two With Hooker &
(Special
<
„
to The
Financial
Shields &
Fay1
G. H. Walker & Co.
Company ;
L. F. Rothschild 8C Co.
Chronicle)
SAN FRANCISCO, Calif .—Nor¬
man
Dick Si Merle-Smith '
L. Gray and George F. Kraft
with Hooker & Fay, 340 Pine
Street, members of the New York
and
San
Francisco
Stock
Ex¬
-
Alex. Brown & Sons
-
Francis I. duPont & Co.
Schoellkopf, Hutton & Pomeroy, Inc.
are
changes.
With E. F. Hutton Co.
(Special to
LONG
J.
The
Financial
Chronicle)
Shearson, Hammill SC Co.
Spencer Trask &. Co.
BEACH, Caiif.—Thomas
Fagan is with E. F, Hutton &
Companyj 219 East Broadway;
■HUH
Auchincloss, Parker 8C Redpath
-
Ex¬
changes. Mr. Merrill was pre¬
viously with Raggio, Reed & Co.
fear
stomach
90%
be
the
hurdle
economic
a
to
with
425 Montgomery
Street, members of the New York
Co.,
developed, etc.
we
turn
;
—
A1 Merrill
(2)
*
;
Calif,
FRANCISCO,,
Armand
trend
news
•
(Special to The Financial Chronicle)
statements
In an election year, the
usually is upward between
Spring and Fall.
•
!
(3) More stimulating corporate
.
Two With Da vies
PHILADELPHIA, Pa.—The In¬
vestment Women's Club of Phila¬
delphia
fabrics, emphasizing their
fashions and
important use in
home decoration.
will have been absorbed.
\
7
f
••
to
and break the dam of
self to the fact that 1952
(1079)
Putnam & Co.
Tucker, Anthony & Co.
*
8
(1080)
The Commercial and Financial Chronicle
-
Central
Ill
Deafer-Broker Investment
Vermont Public
Service—Analysis—Ira Haupt & Co.,
Broadway, New York 6, N. Y.
Continental
National
Bank
Trust
&
of
Co.
COMING
Chicago—Bulletin
—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Recommendations and Literature
River
Dan
(i
underatood that tha firma mentioned will be
aend intereated
to
Mills,
Inc.—Analysis—Hayden,
Street, New York 4, N. Y.
Broad
It
Stone
&
Co.,
EVENTS
In
25
Metals & Supply Co.—Analysis—Hill Richards &
South Spring Street, Los Angeles 14, Calif.
Also
available is a special bulletin on Convertible Preferred
March 14, 1952
tion
United.
Aircraft
Power—Memorandum—Josephthal & Co., 120 Broad¬
New York 5, N. Y.
•
way,
March 17, 1952
is
Trecker
&
South
Corporation.—
Corp.—Memorandum—Fewel
&
Co., 453
Also available
Spring Street, Los Angeles 13, Calif.
memorandum
a
Kidder, Peabody & Co., 17 Wall Street, New York 5, N. Y.
the
issue
same
there
is
also
discussion
brief
a
of
Lane-Wells
the
Soto
March 20,
Airlines—Analysis of outlook—Eastman, Dillon & Co., 15 Broad
Street, New York 5, N. Y.
Cyclical Turn in Bank Stocks?—Analysis—Geyer & Co., Inc.,
Maine
Wall
Expanding
Your
Gas
State
containing
data
on
Natural
Gas,
Arkansas-
Natural
Gas
Pipeline,
Gas
2, Mo.
Jones
and
National
York
market
performance
Quotation
Bureau,
Inc.,
a
Safeway
46
Front
Street,
Stores,
Inc.—Review—Dean
Diego Gas &
Witter
Electric
Foreign
Texas
Power—Review—Ira Haupt
&
&
&
Co.,
14
of
"Market
&
Asso¬
Co.,
Broadway, New York 6, N. Y. In the
sound
same issue is an evalua¬
list of regular dividend
payers with
a
yields.
Anaconda Copper Mining Co.—Brief
memorandum
La Salle
Schafer, Jr.
'
—
Memorandum
—
First
New
York
Stock
Exchange,
passed away on March 7th.
Co., 209 South
300
Convention
America—Report—Dempsey-Tegeler
Seventh
of
Street, Los Angeles 14, Calif.
LINCOLN,
Connell
America, N. T.
&
is
A.—Analysis—The First
Canadian
Boston
June
at
Neb. —Warren
with
vestment
Railway
Company—Analysis—Barclay
Co., 39 South La Salle
Street, Chicago 3, 111.
In¬
(Special
SAN
CITY,
Sinz
is
with
Mo.—William
Waddell
&
The
Financial
outing
Sleepy Hollow Country Club.
With Straus, Blosser
Francisco.
formerly local
gio, Reed & Co.
Mr.
Riley
manager
was
for Rag-
ated
Mc¬
of
Philadelphia
to The Financial
with
Fenner &
Merrill
Lynch,
Club
Traders
Chronicle)
FRANCISCO, Calif.—Wil¬
Pierce,
PETERSBURG, Fla.
C.
Rebholz
has
joined
the
Building.
The
Financial
Chronicle)
•
FRANCISCO, Calif.—Ray¬
Drummond, Jr., Thomas
J. Kolins, and DeForest Reichard
mond
are
A.
now
associated
Rudolph &
with
Paul
C.
Company, 127 Mont¬
Texas
Eastern
Net
"Rights"
TAMPA,
Transmission
Prowse
"Rights"
on
C.
Fla. —William
now
associated
McClure
&
J.
with
Company,
(Special
Steele
With Howard, Weil Firm
Members; N. Y. Security Dealers Association
Trinity Place, New York 6, N. Y.
HA
2-2400.
Private
Cleveland-Denver-Detroit-Los
Teletype NY 1-376; 377; 378
staff of
wires to
Angeles-Philadelphia-Pittsburgh-St.
to
The
Financial
Howard, Weil, Labouisse,
Friedrichs
Louis
&
Co., Hibernia Bldg.,
members of the New Orleans and
Midwest Stock
&
Mass.
—
rejoined
Exchanges.
Detroit
&
outing—
16 at the Detroit Boat
June 17 at the Lochmoor
Club.
Club;
Country
picnic
City
Bond
the
at
Club
White
annual
Bear
Yacht
Club.
June
20-22, 1952
(Minneapolis,
Minn.)
Twin City
sociation
Security Traders As¬
annual
summer
Fishbite"
at
outing
Grand-
Donald
the
He
Gordon
has
B.
Sept. 28-Oct. 1, 1952 (Atlantic
City, N. J.)
Chronicle)
Middlebrook,
Street.
with
Financial
T.
staff
of
Inc.,
American
Bankers
Association
75
recently
Hanlon
&
Co. and Joseph F. Jordon & Co.
Annual Convention.
Oct. 19, 1952
National
ciation
Plaza
Chronicle)
NEW
ORLEANS,
La. —Mrs.
Gertrude C. Martin has
joined the
74
Telephone:
(Special
has
Coburn
been
& Co.
to The
BQSTON,
State
Request
Troster, Singer
of
summer
view Lodge on Gull Lake.
615 Madison Street.
Markets
Prospectus
Louis
is
joint
"Operation
Street.
With Coburn, Middlebrook
(Special to The Financial Chronicle)
American Tobacco
k
to
Rudolph
With Louis McClure
"Rights"
Detroit-Security
Association
Michigan
June
(Detroit, Mich.)
of
SAN
Ed¬
staff of Barrios Investments, Flor¬
ida Theatre
outing at
Country Club.
June 18, 1952 (Minneapolis,
Minn.)
(Special
—
at
Beane, 301 Montgomery
Street.
Three With Paul
Joins Barrios Inv.
convention
summer
the Whitemarsh
Bond
liam F. Watts has become associ¬
Heslop
annual
June 16-17, 1952
SAN
(Special to The Financial Chronicle)
Canada
RAFAEL, Calif. —Earl T.
Jr.' has become affiliated June 13, 1952 (Philadelphia, Pa.)
Lundborg & Co., of
Investment Traders Association
(Special
ST.
(Canada)
Algonquin Hotel, St. Andrewsby-the-Sea, New Brunswick.
Reed,
&
(New York City)
the
Chronicle)
With Merrill Lynch
R.
6, 1952
June 10-13, 1952
Avenue.
is with
Straus, Blosser
Dowell, Buhl Building.
Investment
Irving
San
(Special to The Financial Chronicle)
KANSAS
the
of
&
Lundborg Staff
to
with
gomery
Thiokol
Ambas¬
Bond Club of New York
of
Joins
A.
Riley,
win
Pacific
the
(Special to The Financial Chronicle)
ATLANTA, Ga.—Oliver M.
Coleman, Richard H. Harten and
with
(Special to The Financial Chronicle)
S.
at
Investment Dealers' Association
Ellis, Holyoke &
Company, Stuart Building.
& Co., 210 West
Corporation, 100 Broadway, New York
5, N. Y.
Finan¬
Bankers Association.
Twin
Bank of
Bank
Co.,
of
May 14-17, 1952 (White Sulphur
Springs, W. Va.)
Renyx, Field
Company of New York.
With Ellis, Holyoke
DETROIT, Mich.—Leah
California
Federation
Analysts Societies Fifth An¬
nual
Clarence W. O'Brien have become
the
Oil—Study—Kippen & Co., Inc., 607 St. James
Street, West, Montreal, Que., Canada.
Also available are
America
the Fairmont
sador Hotel.
Three With Renyx, Field
Anglo Canadian
of
Finan¬
Spring Meeting of the Board of
A.
Bay Company.
Convention at
Governors
Inc., 1012 Baltimore
studies of Calgary & Edmonton
Corp., Hollinger Consolidated
Gold Mines and Hudson's
of
May 9-10, 1952 (Los Angeles, CaL)
Street, Chicago 4, 111.
Oil
Gas Light & Coke,
Socony-Vacuum
Sylvania Electric Products, Inc.
Federation
National
Skiles Oil Corporation—Analysis—Cruttenden &
With Waddell & Reed
Montgomery Street, San Francisco 20, Calif.
Investment
Analysts Societies Fifth An¬
nual
Building, Rochester 14, N. Y.
Transportation, Peoples
Bank
of
Hotel.
cial
resume—Freehling, MeyChicago 3, 111. Also'
Corp., General American
and
the
Sperry Corp.
on
Shawmut Association—Analysis—Eisele &
King, Libaire, Stout
& Co., 50
Broadway, New York 4, N. Y.
erhoff & Co., 120 South La
Salle Street,
available are data on Cit Financial
Co.
Group
National
a
Powers
Ill
Company, Ltd.—Brief analysis in current issue
Business Survey"—E. F. Hutton &
Co., 61
tion of Coca-Cola and
at
May 4-8,1952 (San Francisco, Cal.)
Wall
(Special to The Financial Chronicle)
American Metal
dinner
ing at the Hotel Galvez.
Co.—Memorandum—Paul H. Davis
connected
&
annual
Bankers Association Spring Meet¬
Co., 10 South La Salle Street, Chicago 3, 111. Also available
Edward
Broadway, New York 6, N. Y.
York
May 1-2, 1952 (Galveston, Tex.)
selling sharply below
Co., 120 Broadway,
Inc.—Bulletin—Gartley
Philadelphia bowling
Inc.,
Seneca Oil Company—Analysis—Genesee
Valley Securities Co.,
New
ciates, Inc., 68 William Street, New York 5, N. Y. Also avail¬
able is a bulletin on Harshaw
Chemical Company.
American
Lewis,
Cement
Edward Schafer, Jr., member of
Equipment,
R.
is
Bonds—Comparison- -Yilas & Hickey, 49 Wall
Street, New York 5, N. Y.
Gas
New
&
4, New York.
Affiliated
of
Security Traders Association of
Van
cial
San
Railroad Income
Stocks Down From Highs—List of
stocks
their 1951-1952
highs—Sutro Bros. &
New York 5, N. Y.
—
Street, New York 5, N. Y.
as to
period—
13-year
review
Mass.
Averages, both
over
An¬
Waldorf-
Trans¬
Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau
York
the
tournament.
Co.—Analysis and review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston, 9,
Over-the-Counter Index—Booklet showing an
up-to-date com¬
parison between the listed industrial stocks used in the Dow-
yield
Ltd.—Analysis—John
Seattle 4, Wash.
Second Avenue,
Riverside
Pipe Line, Western Natural Gas, and West
Scherck, Richter Co., Landreth Building, St.
e-:V/y,
—
Development,
1006
continental Gas
Ohio
Louis
New
at
April 18, 1952 (New York City)
Current
—
(N. Y. City)
of
Dinner
sociation
Corporation
1952
Club
Waldorf Astoria.
Placer
Supply, Petroleum Heat & Power, Republic
Southern Production, Southern Union Gas,
Texas-Illinois
of
Security Traders Association of
New York-Investment Traders As¬
N. Y.
Manufacturing
Club
April 17, 1952 (New York City)
Alstyne, Noel & Co., 52 Wall Street, New York 5, N. Y.
Southwest Gas Producing, Southwest Natural
Gas, Tennessee
Gas Transmission, Texas Eastern
Transmission, Texas Gas
Transmission,
148
Co., 165 Broadway, New York 6, N. Y.
Gas, Commonwealth Gas, Delhi Oil, East Tennessee
Natural Gas, Hugoton Production, Kansas Nebraska Natural
Gas, Kerr-McGee Oil Industries, Mississippi River Fuel,
Fuel
Co.,
Turnpike—Memorandum—Tripp & Co., 40 Wall Street,
Mullins
Women's
Astoria.
&
Morris & Essex Railroad Co.—Bulletin—C. Herbert Onderdonk
Western
Mountain
Railroad—Information—Raymond
Street, Boston 9, Moss.
New York 5,
Income—Guide to
News—Bulletin
Central
Maine
picking stocks by Ira U.
Cobleigh—David McKay Co., Inc., 225 Park Avenue, New
York 17, N. Y.—$2 per copy.
Natural
nual
Company, 119 West 40th Street, New York 18, N. Y.
Street, New York 5, N. Y.
King
report—Lane-Wells Company,
Street, Los Angeles 58, Calif.
Bond
63
the
Philadelphia spring dinner meet¬
ing at the Sylvania Hotel.
P. Lorillard Company—Illustrated annual
report—P. Lorillard
Earnings Squeeze—Bulletin—Francis I. du Pont & Co., 1 Wall
Street, New York 5, N. Y.
at
(Philadelphia, Pa.)
Investment
Olin Industries.
on
Company—Annual
South
5610
Helicopter Industry.
Traders Associa¬
Dinner
Edward Hotel.
'
In
Annual
,
Kearney
North American Aviation, Inc., Republic
and
Toronto Bond
Stocks.
Interstate
Douglas Aircraft Company, Inc., Grumman Aircraft Engi¬
neering Corporation, Lockheed Aircraft Corporation, McDon¬
(Toronto, Ont.,
Canada)
the in¬
dustry with particular reference to Beach'Aircraft Corpora¬
tion, Bell Aircraft Corporation, Boeing Airplane Company,
Corporation
Field
Ducommon
Aircraft Industry—Brochure discussing the key role of
Aviation
Investment
pleaaad
partiea the following literature:
Co., 621
nell Aircraft Corp.,
Thursday, March 13, 1952
..
(Miami, Fla.)
Security Traders Asso¬
Convention
at
the
Roney
Hotel.
Clement Evans Adds
(Special
to The Financial
Chronicle)
ATLANTA, Ga.—James O. Drew
is now connected with Clement A.
Nov. 30-Dec. 5, 1952
(Hollywood, Fla.)
Investment Bankers Association
Evans & Company,
Annual
tional
wood Beach Hotel.
Bank
Inc., First Na¬
Building,
Convention at the Holly¬
Volume 175
Number 5093
.
.
The Commercial and Financial Chronicle
.
(1081)
Government and against payment
in dollars.
•
A Business View ei
Two
ic
Foreign
visits
Policy
of the International Chamber of Commerce
is
most
involved in the present issue with
Communism.
They, and indeed
inite
of their
some
Prominent business leader takes issue with President Truman's
defeatist
nearly $8 billion in foreign aid,
recommending future assistance to Western Europe be con¬
cannot
request to Congress for
of
inflation
plexity
present-day
of
that
conclude
must
the
com¬
life,
we
rapidly
resources
longer
no
be
can
re¬
The
stricted to the
c
ontinental
United
States.
That is
the
one
of
reasons
why
every
have
the free nations
friendly
nations
their cities
sultant
the
to
War
when
has
recovery
in
stantial—greater
than
tries
has been
in
of
many
The
been
some
others.
re¬
sub¬
coun¬
there
But
degree of recovery in
a
countries
which
could
American
all
businessman
have
must
aid from the United States.
take
an
without
occurred
hardly
Marshall
it
As
we
inter-
t
e s
and
positive
in
a
part
shaping
American
foerign
eco¬
nomic
i
George A. Sloan
c
i
pol-
For,
es.
whatever
the
trends
may be in different parts
world, there will be direct
or indirect reactions in your busi¬
ness,
in your home.
of the
Take
for
example
latest
the
meeting of the North Atlantic
Treaty Organization, better
known
the
Europe
well
has
done
remarkably
increasing industrial out¬
fight against inflation
been
fairly
successful
in
countries such as Italy, far
The
has
some
less
successful
France.
in
others
such
as
The program of
cooperation
economic
nations has
among
made
progress, although not as
rapidly as needed. Basically, Eu¬
rope
reduced its foreign
trade
deficit from $5.3 billion in 1948
to $2.1 billion in 1950. Due to rise
in the
price of imports, the figure
increased to $3.8 billion last year.
At the same time, Europe's ex¬
NATO, in Lisbon. That ports increased from $16.8 billion
nations
have
pledged; in 1948 to $26.3 billion in 1951.
as
free
themselves to
This
rearmament pro¬
a
is
wonderful
a
situation
manship
It
and
resist
to
in
experts
calls
of
record
been
limited
be
the
to
men
to
every
grants
can
of
more
effective mili¬
businessmen
should
begin
looking ahead to this future date,
mini¬ giving careful thought to business
through and governmental policies which
now
be
civilian
by
demand
restrictive
policies will promote world-wide economic
meas¬
growth.
credit
After
In
that
defense
our
imperialism has
rearmament
on
against
to
more
Soviet
it than
military aspects.
orbit
mately
af¬
of
has
foreign
been
ian
economic
shall
a severe
ulti¬
time,
purchasing
life
as
greater
The Mar¬
has
been
it
because
basis
of
mainly
conceived
was
recognizing
formulate foreign
cial aspects of European security.
emphasizing the economic and
This
served
released
was
without
any
restrictions.
\v e
avoided depression but we did noL
avoid inflation.
Every American
1950.
emphasis
in
the
must
current
be
time,
war
assuming another
avoided, there may
is
no
rearmament
transition.
and tainly there is
on
Dangers of Rearmament
power
the
At
accumulated
comparable cushion of pentsuc¬ up demand to facilitate the post-
administering such grants do not,
of
themselves,
qualify men
to
policy.
huge
a
Strength includes household has felt the effect—
might, but also with the dollar losing half of its
of eco¬ buying power between 1939 and
social
Plan
the
curtailment of civil¬
components
and
cessful
in
were
we
armed
absence of social strife.
-
II
product and demand.
This
productivity and efficiency, polit¬
ical and economic; stability, and world
such
experience
is
struggle of strength—not
vital
nomic
free world
alone.
only
such
seems
many
a
arms
not
the
and
War
a
same
giving away
That
World
able to avoid
depression because
in the preceding years there had
sight of the fact
concentrating
must not lose
we
the
service
of
successful
substan¬
can
be
ures.
The
blueprinting
of
foreign countries and
to
a
resources,
managerial
and other indirect economic
states¬
economic
the
answer
problem;
even
When rearmament
The conflict between the Soviet
government
of
tially be reduced, thereby releas¬
Also, the ing resources for the satisfaction
obtained
could
more
so-called
many
of billions of dollars.
to
rearmament
our economy.
price of
mizing
ag¬
every¬
for
diplomacy
foreign
in
down
tion
allies build
our
too
are
benefits
knowledge,
know-how and labor skills.
An alternate solu¬
highest order.
There
full
scientific
tary strength.
a responsibil¬
ity here that cannot be met with
alone.
living of all countries by deriving
the
for
more
at the
are
We Americans have
dollars
and
of peacetime needs, international
confidently. With the trade
and
foreign
investments
down,
however,
we
are should once more
occupy a key
achieving more economic stability position in world affairs.
Even
we are making
prevent another war.
to
def¬
confronted
come.
slowing
extending
self-defense,
easier
the
will reduce the peril of over-
faced
fairs in Washington whose experi¬
in
put.
and
to
years
be
post-rearmament transition
at
striving
A strong patri¬
determination
ence
active
this
who
under
slow
gression must be developed
II
of
rescue
in ruin.
were
of
to preserve peace.
be
can
of World
end
gone
aimed
will
a
we
danger with which
By
we
mind
difficult to
more
defense
correction
where.
Since the
we
"We
another
of
perplexing issues and
some
is, in my opinion, a major re¬
sponsibility confronting leaders of
our
interests
saying,
win
It represents one of the
allies
our
the
express
frame
a
strong
a
in
to
stake
the prevention of war.
harnessed.
economic
our
these
Such
build
otic
examine
we
attitude
makes it all the
solvency, currency convertibility, and increased importation of
foreign goods into U. S. market. Maintains next post-armament
transition must be cushioned by unprecedentedly large inter¬
national exchange of goods and services.
When
leaders,
afford
war."
military assistance. Mr. Sloan urges curtailment
on
international plane, maintenance of external
on
personal
countries
a source of mutual economic
gain.
In time of peace, the
objective is
to bring about rising standards of
The second point remains to be
that
own
in
Soviet yoke.
The association of nations in in¬
spread it over a longer
ternational trade has always been
period than heretofore planned.
to
gram
answered.
their
appeared
slow down the preparedness pro¬
Europe
those countries who do not realize
By GEORGE A. SLOAN*
centrated
Western
last year have convinced me that
there are far too many people in
Chairman, the United States Council
current
to
session in Lisbon have decided to
9
so¬
be pre¬
period of
no room
And
cer¬
for further
inflation without destroying pub¬
confidence and wrecking our
lic
economy.
A
Different Cushion
challenges the free rearmament. The rearmament pro¬
Our search for this cushion must
basic questions— gram must be designed not to in¬
terfere with the cooperative ef¬ lead in another direction.
question which we must constant¬
May I
ly take into account while formu¬ fort of building a productive and suggest to you, who are so well
united Western World.
The In¬ experienced in
foreign trade, that
lating our policies at home and
Rearmament
world
with
two
ternational Chamber of Commerce
abroad:
a
solution
can
be
found
in
re¬
a
insolvency in the countries receiv¬
three
next
ultimately
must
years
affect the lives of everyone in the
United States. And should we fall
nomic dislocation.
achievement—the
in
result
large
of economic aid from the
measure
United States,
*
Continuation
to the temptation to let
prey
recognized this need in Lisbon last vival of international exchange of
goods and services on a scale
economy
of 30 countries made the
subject of much larger than before.
other
free
nations
through too economic
cooperation in a rearm¬
This prescription may be easier
much defense mobilization
over
ing world the number one item on
to formulate than to carry out.
too long a time without adequate
their deliberations.
reduction in civilian demand.
For despite all our efforts to the
The military programs of the
Second—We might thereby find
free world are designed in a spirit contrary there may be a business
ourselves so heavily over-invested
of
defense.
We merely seek to recession
somewhere
along the,
in capital goods industries that a
counter the menace of Soviet ag¬
way. But even if that should hap¬
decline in military requirements
gression.
At the same time we
may
bring with it serious eco¬ must demonstrate that the effec¬ pen between now and the day of
ing such aid and without endan¬
to cost $300 billion for the
gram
A
Aid
of
Would
our
Encourage
international
Insolvency
obligations go for
naught in this year of great de¬
HoweVer, we must realize now
cision, we would obviously forfeit that such large-scale pump-prim¬
a
position of leadership among ing
cannot
continue
without
the free nations of the world.
Military
encouraging
Requirements and
Civilian
Needs
gering
The recent session of the North
Atlantic
alliance
balance
seeking to
requirements
was
military
the
to
point
Rearmament
world.
does
not
merely pose the problem of
raising armies or finding equip¬
for
ment
these
armies.
It
also
fhe complex task of di¬
verting manpower, materials and
presents
finances
from
civilian
needs
of
grave
I
Economically speaking, the pri¬
objective of rearmament is:
(1) To increase military budg¬
ets realistically; and
(2) To take steps of
domestic
a
economic nature which
of
are
neces¬
to carry through these mil¬
budgets,
more
such
resources
taxation
diversion
as
in NATO
tries from civilian to
adequate
coun¬
military
and
use,
checking
inflation.
of
of
the chief eco¬
increasing the
pace of rearmament in Europe is
to increase production, either by
tapping additional economic. res¬
ervoirs or by increasing the pro¬
ductivity of
resources
Currently,
use.
considerable
there
amount
already in
is
of
still
a
to
This
can
short
some
extent
in
France.
be found in the form of
hours, unemployment and
plants in the vital met¬
unused
allurgical, chemical and engineer¬
industries.
The success of
NATO depends largely on how
ing
♦An
address
by Mr. Sloan before the
World Trade Conference,
Chicago, 111., March 6, 1952.
15th
where it could not
call in case of future
a
emergency.
have
first
our own
can
of
be
ministers
recently
and
resources
of
political, economic
in gious freedoms which
the
reconversion
and justice methods
achieved without the
mobilization officials and
NATO
States
to
expressing the
loss
strict
and reli¬
have dis¬
or
we
must
still
avoid
ideas which would
international
trade.
Continued
This announcement is not an
on
page
March 13,1952
military relief to West¬
610,937 Shares
Neither do I agree with those who
aid expenditure.
The
these
of
next
Texas Eastern Transmission
fiscal
takes
experiences and
we
must
be
can
costly
light
Corporation
Common Stock
mis¬
our
determine how
now
helpful
more
in
par
less
triotic
spirit
of free
sidious
in strengthening
the morale, the pa¬
and the determina¬
nations
to
Communism
resist
per
share
Company has issued warrants, expiring March 26, 1952, to
Stock, evidencing primary rights to subscribe for these shares at the rate
in¬
ruthless
and
value $7
holders of its Common
of 1 share for
each 8 shares held, with additional rights to subscribe subject to allotment for shares
not taken under the primary rights, all as more fully set forth in the prospectus.
Common Stock may be offered by the underwriters as set forth in the prospectus.
The
manner
the economy,
tion
In the
extremes.
two
our
we
the
for
answer
must be somewhere between
year
Chicago
Just
States
clear
last
Friday,
Council
made
the
its
United
to
should
share
the subject when we rec¬
on
ommended that "future American
aid
Subscription Price to Warrant Holders $17 per
position
most
in
of
Western
essence
be
»
_
Europe
confined
to
Copies oj the prospectus may be obtainedjrom such oj the undersigned
(who are among the underwriters named in the prospectus) as may
legally ojjer these securities under applicable securities laws.
military assistance with emphasis
on
its economic effects."
We
said
sistance
to
specifically
that
Europe for next
Dillon, Read & Co. Inc.
should take either
or
as¬
year
both of two
Blyth & Co., Inc.
Glore, Forgan & Co.
Goldman, Sachs & Co.
Kidder, Peabody & Co.
forms:
(1)
Military
equipment
and
supplies produced in the United
States
and
made
available
to
NATO
countries; and
Goods and services pro¬
duced by NATO countries for use
by their military forces under
(2)
contract
with
the
United
States
Lazard Freres & Co.
Lehman Brothers
Union Securities
Merrill Lynch, Pierce, Fenner & Beane
Stone & Webster Securities Corporation
Smith, Barney & Co.
Corporation
Dean Witter & Co.
re¬
For
ojjer o] securitiesfor sale or a solicitaUon of an offer to buy securities,
eco¬
Europe should be abandoned.
ern
use
maintenance of peace
on
back
come
profound conviction that all
nomic and
tive
the
to
sympathy with those
no
United
reference
point, it is noteworthy that both
the
brief vacations and
the
With
June when 800 businessmen from
unused
productive capacity in such coun¬
tries as Belgium, Italy, Germany
and
help
our
aggression.
one
means
Today,
nomic
such
Americans, who go to Europe
mary
itary
and
might over-strain
and
the
economy
support every proposal for foreign
the economy.
sary
the
habits
of
source
respond to
with the economic capacity of the
free
narcotic
First—We
if
23
10
(1 <#&)
The Commercial and Financial Chronicle
In
Text oi IBA Memorandum
charges
T.
of
President
tion
ation of America, through its Pres¬
ident,
for
Joseph
its
T.
Board
submitted
Johnson,
Securities
that
and
has
feeling of
our
Johnson,
the
of
nite
IBA
agencies
opportunity to
be
their
Counsel,
General
the
Com¬
Murray
*
f'
the
'The
valid
tha't
or
be
im¬
is
concerned
Government
services
dum
We
have
proposal
Joseph T. Johnson
Exchange
randum
Commission
this
is
not
dated
testing
against
fees
new
March
levied
the;
and
the
on
7
be
to
securities
indus¬
was
pre¬
pared in response to the invitation
of
the
SEC
proposals.
for
comment
its
on
examined
wish
the
to
comments
Dealers.
proposed
This memorandum
try.
pro¬
charges
•
.
-
inafter discussed, with the two; made.
Appropriations Committees of the plied.)'-:
the
.
subject
make
and
which
While
follows
the
is
which
it
no
to
the
lieve
that
mucn
oi
it
is
we
sup¬
The
Proposed
for
New
Registration
the
Broker-Dealers and
as
Intended
were
to
offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.
increase
■
„•
■
•
not
.
•
7
.
.•
ards,
13, 1952
constitute
to fix
their
as
of
tax
First
share
may
by
or
Corporation
Wertheim & Co.
/
of
Union Securities
A. G. Becker & Co.
Incorporate!
The Ohio
Estabrook & Co.
Company
Hayden, Stone & Co.
Reynolds & Co.
Baker, Weeks & Harden
to
Corporation
Clark, Dodge & Co.
Lee Higginson Corporation
Schoellkopf, Hutton & Pomeroy, Inc.
Ball, Burge & Kraus
Swiss American
,
Johnston, Lemon & Co.
.
direct
'7
sense
.
Julien Collins &
Corporation
Henry Herrman & Co,
Yarnall & Co.
Company
.
Weeden & Co.
Stern Brothers & Co.
Arthur L.
Robert Garrett & Sons
New York Hanseatic Corporation
v
Wright & Co., Inc.
under
with
.
.
Stockton Broome & Co.
u'iX;!
Congress':
is
not
sound
sustaining."-
Byrd Brothers
Lee W. Carroll & Co.
Shelby Cullom Davis & Co.
JJjhn
Clayton Securities Corporation
DeHaven & Townsend, Crouter & Bodine
Douglas & Company, Inc.
Elkins, Morris & Co.
H. L. Emerson & Co.
Incorporated
.
First
Iowa
Corporation
Glover & MacGregor, Inc.
or
any
for
util¬
IX W. Pizzini & Co., Inc.
'
Rambo, Close & Kerner
•*
Incorporated
Edw. Lowher Stokes Co.
Arthurs, Lestrange & Co.
Green, Ellis & Anderson
Roger S. Palmer Co.
Erickson Perkir
Rodman & Linn
'
■
Cunningham & Co.
Ferris & Company
s
& Co.
Sills, Fairman & Harris
,
Incorporated
Townsend, Dabney and Tyson
*
* Este & Co.
Joyce & Company
of
aware
which
was
arrived
ures
from Table 7
the
17th
%
.
We fail
l'all
at,
the exact
this
but,
estimate
taking
on
fig-
page 200
of
Annual
this
ments
the
are
regulatory
first
At
would
$50
result
$195,400.
etc.,
is
it
is
listed
far
of the
from
at
13,078.
certain, be¬
difficulties of
apply¬
ing subsection
(a)(1)
of. Rule
X-15B-7 to individual
cases,* just
inter¬
which of these
with
be
as
time
year
engaged
trant
a
persons connected
broker-dealer firm woujd
a
excluded
any
require¬
in
today.
this
Table, the total
proprietors, partners,
officers,
filings
step
to
revenue
same
of
cause
broker-
reasonable
any
substantial
a
in the amount of
While
for
latest
that this:
seem
the
situation
number
sup¬
where the statu¬
see
of
registrant,
In
to lim¬
registrations, and
within
the
fees
services
-
to
tory,,. requirements
dealer
of
per
in
in
a
the
not
person
during
the
sale
and
"at
preceding
behalf of
on
regis¬
purchase of
.
the benefit of investors gener¬
to the general public
interest.
If one
ex¬
fore,
what
'believe
we
intent
to
.
.
to prescribe
if
;
.
determine, in
there-,,
any,
case
as
none
we
have no quarrel)
we
think that broker-dealer registra¬
lie
ex--
and
filings
within
the
marily
or
clearly
are
type
services
of
directly
beneficiaries
for
is
clear
quoted
-
J. R. Williston & Co.
special
any
to The
above'
V
/.-.©*
that
directive
broker-dealer
Government, value
recipient, public policy
interest served,
pertinent facts."
its Chairman is
or
absolute
no»
the
Title
cost to the
>
.to
5
Assuming for purposes of
regjis-
-
ment
that
broker-dealer
Indianapolis Bond and Share Corporation
argu¬
registra¬
.
apply , and make
a
determination
view, this authorization with respect to the various stand¬
general and indefinite that, ards set forth in Title V before
little .light on which "if the
Commission or its Chairman
any"" Registration with the sev¬ can
rightfully determine what fee,
eral Federal
agencies should jbe if any,, is
appropriate in the cir¬
so
sheds
charged
to
for.
be
introduced
Fauset, Steele & Co.
^
our
is
gress
Robert Showers
This
view
a
would, cumstances.
supported byihe bill, each
.in the^ present Con-" as
Representative
by
Busbey,
member
of
of
Let!s
the
take
prescribed
a
the
V.' broker-dealer
House
look
at
standards
they apply, to fees, if
Fred
Committee,
on'
26, 1952 (H.R. 6846), which
designed to make it clear that
Feb.
is
the
language of
in
persons
this
cate¬
be subject to the $10
respect to the number of
same
Table
breakdown
of
covered
by
the
pro¬
Rule% the Commission, in
persons
dealer
7, does not give
the
of
total
employed
a
number
by
broker-
firms
(61,659) as "sales¬
men," -"traders," "customers' men"
and
"other
employees"
(although
this information is
required to be
.
supplied
to
the
broker-dealers
Commission
in
their
by
registra¬
tion forms), and here again there
is difficulty in
applying subsection
other w(a)
and
:
fees, but rather has com-1 tions jarid
filings are a type of
plete discretion to "determine work
or-service falling within the
whether such fees, if
any, are in-; intent of
Congress, the Commis¬
dicated in light of the standards to sion is still
under an obligation to
be applied.
: .•
seem
the
which
.
4
from
language of
impose
In
posed
pri¬
into
derscoring Supplied.)
With
.
employees
not
Congress in¬
should be self-supporting.
...
-under
gory would
of
tended
to be fair and equitable*
consideration
direct The
Proposed New Registration
and indirect cost, to the Govern¬
Fees for Broker-Dealers and
ment, value to the recipient, pub¬ t 7 ; their Employees are not "fair
lic policy or interest
served, and, •; 5 and equitable taking into conother pertinent facts.
." ; (Un-' 7% sideration direct and indirect
ists,
13,000-odd
the
be
this
Of
this Rule, substantially all of the
which
tions
is authorized jby
agency
regulation
for such fee
taking
construction
ally .and
.
possible, and the head of each
Federal
or
any,
registrations
for
and
(1) to many individual em¬
ployees., Taking, however, a rule
k
of thumb which
on
the
is believed
supervising,
so
-engaged,
46,244
etc.,
against
get
we
which,
at
one
n<?t
qf
head,,
figure
a
$10
per
would bring $462,440.
If an estimate is
made,
there¬
fore, of the likely fees to be ob¬
tained under Rule X-15B-7 on thisbasis, we get a total figure of
$780,000 plus, which is consider¬
ably greater than the estimate of
the Commission referred to above.
So we have a
figure somewhere
Continued
Government"
be
employees engaged sometime dar¬
ing the year in selling, buying,
related "services."
"Direct and Indirect Cost to the
to
conservative side, of three
Appropriations
John B.'
not
by
...
self-sustaining to the full
it
JLhn Kormendi Company
are
formula
derived from the proposed fees.
In this Table the
Commission lists:
3,908 registrants as of June
30,
1951, and it is believed that these
figures are fairly representative
public
(Underscoring
tration
Butcher & Sherrerd
been
be
considers, there¬
(or)
of value
.
respect"
>.-••
-
of the
service
.
the Commission
Merrill, Turben & Co.
self-
know,
has
Congress as re-, fee.
provided, (or) granted,
Taking the total number of
fleeted by the language of Title V
Federal agency
13,078 at $10 a- head, we get a
and its legislative
history (with figure of
any person,
shall'
$130,780.
-
.
by
or
It
Burnham & Company
not
are
intended to be
,
.Shearson, Hammili & Co.
it
ited groups."
basic
.
...
shall
American Securities Corporation
Merle-Smith
we
Commission, in a "Notice to
Mailing List" dated Feb. 18, 1952,
underestimate
1948:
primarily of direct benefit
all, what does Title V
or
any
ity
Bear, Stearns & Co.
*
Salomon Bros. & Hutzler
.
I tick &
Tru¬
Budget
-
"It is the
legally be distributed.
Lehman Brothers
Uistman, Dillon & Co.
the
compensation for certain
fee
stand¬
Congress
that:
see
tent
ihe First Boston
as
policing scheme for securities, in the
supervision of
to fees, if any, for broker-dealer' activities generally in the securi¬ such
activity, or in the manage¬
ties markets and
obviously inure, ment: of the business ofc
registration? If we take only the
regis¬
relevant language of Title V we" to the extent they are successful,
trant," certainly under any liberal
to
be
Il
in
filing
Copies of the Prospectus may be obtained from any of the. several underwriters
only in .States in which such underwriters are qualified to act as dealers
Prospectus
employees
V
registration
such
far
The
,
that
which
President
of
because
broker-dealers pretation :of
"services which
it
their employees are not spe-- (the
Commission) renders to spe¬
cial beneficiaries of services from cial beneficiaries."
In
fact,' the
the SEC.
registration and
Plus accrued dividends from March
1, 1952
in
So
to
"special
determination
accord
unconsti¬ full-cost
definite
were
authorized
Title
Par Value $100 Per Share
and
assumed
This' available), it would
estimate
may
be
in
the
submit that the proposed^ plied.)*
we
authorize
securities
be
and
4.56% Preferred Stock
in
view
"While
an
rate
a
prescribed
fees such
Company
Price $102,375 per
bring in
revenue
actually
agencies.
expressed
by
delegation
and
ers
'
'
.
Ohio Edison
.
charges
only
upon
basis, and many services
Con¬ should be provided free, the Gov¬
of its legislative power but- ernment should receive adequate
power
150,000 Shares.
'•
it
and
are
would
message for
registration fees for broker-deal¬
'
the
man,
is rather only a delegation of the
;•
March
;
who
Government
with
be
equaiiy
of these securities.
any
ISSUE
i
fees
the
that
apparent
imposed
-
conclusion
Authorized by Congress under
Title V.
be¬
be
is
of
does
proposed
not
Report of the
the Securities and Exchange Commis¬
beneficiaries of special-services by' sion to
the Congress <the
their Employees are not Fees
such
pri¬
within
NEW
should
the constitutional
on
persons
Fees
gress
an
as
statement
ception
the
such
We
this
are
question.
tutional
The
From
Assuming hereinafter, for pur¬ policy to charge for all services of
poses of argument, that Title V- the
Federal
Government
on
a
of
are
made.
•
applicable to other proposals cov¬
ered by this release, with the ex¬
In his letter submitting
This advertisement is neither
we
memorandum
discussion
marily with this proposal,
will
the Commission
supporting.
of
renders
(Underscoring
'
*
submitting Committee it
Appendix A, ;a brief intended that
Budget,
herewith,
recom¬
concerned
statute
sufficient
these
re¬
many
make
is perhaps
Congress and with the Bureau of
mendations with respect to pro¬
posed Rule X-15B-7—Registration
and Filing Fees for Brokers and
memo¬
.a
,
and
following
Murray Hanson
of the IBA Memoran¬
follows:
than
services" of
'
text
the
Presumably the* Com¬
already certain that the
prescribed
make
special beneficiaries.*...
"The bill would provide author¬
ity for Government agencies to
Federal
fix the rate of any
price. We recognize
may
to
scribed:,
more
Committee
the
the
standards
of
charges
and
ceiving full return from
too indefi¬
heads
fees
posed thereunder:
Con¬
which
are
in
r
through
heard
Hanson.
The
standards
cost
a
charges for these services indicated that it estimated the
not the most
appropriate tribunal before which? incases where no charge is made annual registration fee payable
by
to raise this question, -but with' at present, and to revise
under
charges broker-dealers
the
new
the thought that the Commission," where' present
Rule would
charges are too
bring in revenue of
before proceding further with this* low, except in cases where the $455,000, so
presumably the Com¬
or analogous
proposals, may well charge is * specifically fixed by mission feels that this figure
want to discuss this fundamental law or the law specifically pro¬ would not make this
activity of
question, as well as others here¬ vides that no
charge shall be the Commission more than "self-
private hearing
or
constitute
which
that
Commission
the
standards
fee, charge
might hold
the proposal and be given an
on
the
to
by
entire membership."
in his letter, also
public
any
that
determining
fee, charge or price
under Title V and be¬
did prescribe
make
(even though
on
mission is
gress
the
to
so,
stuay on this point
lees
states
of
requested that the IBA be advised
of
already done
the
imposed
We
highly appropriate
Commission, if it has not
the
tion
Act
of
1952,
specifically
states, with respect to Title V and
the rate of any
well "as the views and
as
loir
of
charges in¬
House
dealer
-
filings?
Appropriations on H.R, very general) and to make a de¬
finitive
3860" (House Report No.
finding or determination
384, 82d
Congress,- First- Session), whicn of these costs other than that
was
subsequently enacted as the which may be inferred from the
Independent Offices
Appropria¬ likely return from the fees pre¬
the
to
the
Government
broker
and
would think it
ity to prescribe what some of the
general views of
the Board of Governors of the As¬
sociation
delegated
report of
mittee
an
heads of Federal agencies author¬
the
reflects
Mr.
Congress
cause
Johnson,
approval
Committee
Executive
and
is
and
the
with
registrations
standards shall be in
Mr.
Milwaukee,
the
V
islative power by the Congress to
the heads of Federal agencies be¬
cause
Co.,
it
The
J
Title
that
type of lees
costs^to
connected
tended to be authorized in Title V.
unconstitutional delegation of leg¬
and their
memorandum,
waukee
has
the
to
Governors,
Agencies.
submit
indication
general
a
Thursday, March 13, 1952
.
direct
We think it appropriate,
find
the
Legislative Power by
of
eral
We
who is also President of The Mil¬
acting
of
do
Delega¬
Congress to the Heads of Fed¬
employees contravenes legislative intent.
the
Title V.
i *
Unconstitutional
an
the
proposed SEC registration fees for broker-dealers
The Investment Bankers Associ¬
and. broker-dealer registrations under
'
.
therefore, to look to the legis¬
Appropriations Act of 1952 Is lative history of Title V. Here we
Investment Bankers
Association of America, submits memorandum to Securit.es
and Exchange Commission in response to invitation for com¬
ment on proposed new fees and charges to be imposed by
the Commission. Asserts even if Title V of Independent Offices
Appropriations Act of 1952, is assumed to be constitutional,
Johnson,
V
Title V of the Independent Offices
Condemning SEC Fee Proposals
Joseph
duplications
for
certifications.
.
*Are
ment
of
all
a
persons
in
a
on
page
31
tuynif •depart¬
broker-dealer firm included, in
■
SEC
is
not
to
charge" for
,
are
^
the
.
v...
,
direct
,
.
rv«r-""pnt »nd
v,
and
in-
advertising, etc.?
municipal
departments,
Volume 175
Number 5098
.
.
The Commercial and Financial Chronicle
.
(1083)
ing
McCormick Urges Easing Rules on
serious and
process a
risk
essary
and
order
to insure proper investor
protection all pertinent sections
unnec¬
resultant
a
unwarranted cost to issuers and
investors.
Underwiitings; Favors Frear Bill
of
and
to
extend
permitted during
to
any
that
Former SEC Commissioner makes following recommendations
testifying before Heller Committee: (1) removal of prohibi¬
against solicita'ions during registration period; (2) per¬
mission to use identifying statement in advance of official
pros¬
pectus; (3) shortening of registration period; (4) clarification
of Federal jurisdiction over securities transactions; (5) sim¬
plification of present prospectus; (6) exemption of bonds of
*
tion
can
in
;
Bill, admitting it will
Edward
dent
T.
the
of
McCormick,
New
York
Presi¬
Curb
Ex¬
change, and a former Securities
and Exchange Commissioner, ap-
ficial
peared
March
fore
of
on
10
be¬
hearing
a
the
Heller
curities
it
Exchange
the
m
sion
i
m
s
-
Subcom¬
mittees of the
House
Com¬
mittee
terstate
r
Com-
in New
merce
York
In¬
on
City and
bread
a
pre-
the
will
appreciate,
the New York Curb
E.
T.
McCormick
ommendations
Following
the
for changes in
Exchange Acts.
reading
of
his
statement,
Mr.
McCormick
>,
.
-
the Securities and
was
questioned by Rep. Louis B. Hel¬
ler, Chairman, as well as by other
members
of
the
Subcommittee.
*
The, text
of Mr.
follows:
statement
C
I
h
McCormick's
jurisdiction
here today at the re¬
of the Honorable Louis B.
Heller, Chairman of the Securities
and
Exchange
committee
Commission
the
of
Sub¬
Committee
on
Interstate and Foreign Commerce,
for the purpose of
expressing
my
views
that
of
with
the
respect
Securities
1934 has
of the
and
had
the
of
under
jnem-
that
of
a.
standing in the place of
a
reserve
and
power
does
first
not
The
its
To
the
have occurred
New
operation
Exchange,
the
in
York-Curb
direct
result
Exchange
beneficial
is my
It
is
shared
legislation
-.
»in
much
and
other legislation admin¬
any
istered
that Act
to
by the Securities and Ex¬
change
Commission
the
or
rules
I shall
attempt in this statement
express
above
basic views
my
matters
without
detail
unnecessary
or
the
on
going into
refinements.
While
avoiding such detail in ex¬
pressing my views, I shall attempt
to
be
such
in
precise
as
the
under
gaps
this
as, may
oral
of
members
to
to
inquiry
the
the
as
may
I wish to state
in
confidence
the
and
which
know
So
far
to the
SEC, and
a
as
a
the
this
member
a
of
the
Commissioner; of the
short stint
second
largest
country,
I
can
head of
as
Exchange
be
in
helpful to
of
cerned,
(1)
views
my
merated
-
specific
as
generally
I
accord
recommend
the
amendments to the
of
1933
the
Congress
investor
industry,
assisting in their solution.
^.'.As
know,
you
New
York
thus
far
entered
April
whichT
was
a
upon
Exchange has
relatively brief; I
duties there
my
last^ year.
wish
also
have
some
to"
state
idea
of
I, therefore,
that
the
while
views
the members of the
Exchange
cerning the various matters I
pose
in
I
of
con¬
many
are
expressed do
not
300
While
the
million
a
are
of
use
it that
insure,
far
so
condition
investors
come
they
in
the
of
the
curities
which
traded
not
panies.
able
banks
of
se¬
its
support
1933 when the law
to
that
see
delivered
bee useful
at
the
a
prospectus
time
to the
when
it
investor
in
be
a
memorial
mere
of
a
corporate
placed by issu¬
with large institu->
were
the
depriving small in¬
including
the
smaller
the
insurance
opportunity
bonds.
dealers who
In
are
companies,
to
purchase
addition,
not in
of ?careful study
years
all
(e)
■
•.*
as
of
private financing have been
entirely
eliminated
from
the
such
.
(3)
:
I believe that the Commis¬
should
sion
pursue
more
its
further
simplification of the
pectus
filed
of
Act
present
heard
frequently
reference
the
of
to
the
pros¬
the
and
5
It is
simple
plex
lengthy
and
the
and
understand.
there
has
merit
seen
pared
by
I
a
this
to
have
been
Act
believe
tributive
hands
that
could
be
is
machinery
there
able
of
I
think
they offer
program
certain
burdens
into
diction
tain
in
of Federal juris¬
connection
securities
with
cer¬
transactions.
In
This advertisement is neither
even
type bond is
"margined" that there
need
to present to prosper*-,
five investors all the data essen¬
I
some
prospectuses, pre¬
lawyers more with an
setting
to
up
legal
no
tial
defenses
to
appraisal of equity
an
curities
against remotely contingent
liabilities
than
to
informing
in¬
vestors, which would prove a ver¬
itable nightmare
an
other
.
r
se¬
lower grade bonds.
In
or
words,
much
of
the
mation
needed
for
Continued
to any securities
proper
on
page
to sell, nor a solicitation of an offer to buy
offering is made only by the Prospectus.;
any
of these Securities.
Mississippi Valley Gas Company
($5 Par Value)
the;
-
of
Price
rec¬
$11.25 Per Share
of
and..
Copies of the Prospectus may be obtained .from the undersigned: <in any State in which the undersigned may legally offer these::,
securities in compliance with the securities laws of such State.
business,
reason-',
■
the
securities
EQUITABLE SECURITIES CORPORATION
business, and for the correction of
the major defects in investor pro-'
tection
I
wish
under
here
to
the
Securities
refer
to
five
elements in the program':
(a)
pro¬
The
offerings
in
prohibition
the
W. C. LANGLEY & CO.
WHITE, WELD & CO.
Act."
SHIELDS & COMPANY
basic
SHEARSON, HAMMILL & CO.
f'
TUCKER, ANTHONY & CO. !
March 12, 1952.
'
G. H. WALKER & CO.
against-
post-filing but
-
nec¬
pre-effective period of registra¬
tion injects into the underwrit¬
r
,.
infor-
-
offer
The
heavy and unnecessary"
on
the
investors.
for the elimination.-
placed
a
of
channeled
between
a
is
many
institutional
highly
so
of
for
that
which
of small
The
-
deal
complaint,
been
through the normal securities dis¬
to read
great
have
in
way
these-issues
instrument
an
ordinary investor
these
of
The Securities,
SEC
belief
my
.
with
is that the prospectus is too com¬
for
the
and
most
the
of
distribution
widely criticized for the develop¬
ment of private placement.
loudest
industry
Section
Act
Securities
Probably
of
high grade bonds.
for
program
under
1933.
stream
aggres¬
sively
eye
Some question has arisen
to the scope
segments-of
industry,
small
position
a
to take part in the negotiation
of
Frear Bill.
adop¬
result
com¬
of
400,000 Shores
1947 -by; the
issue!
many
Common Stock
of
Se4
passage of the
been
and
these
on
indicated
m
This has had the undesir¬
effect
vestors,
exchanges
accepts this proposal in principle
has
the
accordance
lions, principally insurance
securi¬
deals; in
in
highest', grade
have
directly
ers
an
industry
the
bonds
se¬
or not they are
exchange. It is my
understanding that that portion of
on
in
presented
purities Act of 1933
ties laws whether
traded
be
counting jargon.
enterprise.
our
form,
!: (4) Since the
of large publicly owned
companies would be accorded the
protection under
remaining
could
fi*
infor¬
common sense, Anglowords, devoid so far as
possible of technical, legal and ac¬
curities
same
The
Saxon
be¬
In other words, the holders of
request to
them.
essential
ods, and in
their*
had
could
with uniform and objective meth¬
able
of
then
■summary
essential,- material
concerning the operations
financial
other
and
exhibits
desired
and
mation
to ascertain the
facts
readable
financial
Such
prospectus
publicly
be
who
nancial
practicable, that
as
those who invest in large
held corporations would
and
have
those
to
investor is informed be¬
an
technical
detail.
be made available
upon
amendments
see
the
other
buys a new issue, this Bill,
supplementing
the
present
re¬
quirements of the 1934 Act would
the
should
assets
security holders.
proposed
be
can
and
by eliminating from it and placing
the required exhibits much
of
fore he
including
believes
in
prospectus
concise
more
and
essarily represent the views of all
investor
and investor groups and individu¬
to discuss today, the opinions
which
$3
least
with
member. These
ommendations
als.
tenure at the
Curb
been
of
my
and
the
ex¬
in¬
Commission's Staff Committee,
securities
American
of
various
and
Securities Act;
in
proposed
the
the
securities
the
least
at
The
made
corporations hav¬
to the Securities Act would
follows:
government,
and
itself
prospectus
enu¬
in
the
fronting
all
cover
at
and
messages,
Congress
are con--
as
fully
am
for
Securities
composed
busi¬
be
delineating
con¬
the
amendments
may
innumerable conferences
problems
ing
Specific
i/t in appraising the work of the
SEC, and more importantly, in
the
is
was
bread
our
applicable statutes
by
years
the
under
1933
Amendments
would
and
the
securities
is
Recommendation
tion
17
filed
of
butter.
and
staff
of
which
market
the
in
we
well
ness
hope that from the vantage point
of
securities
early thirties—the confidence
the Committee that I sincerely
to
as
statute
adopted), it must revise tne
badly shaken in the late twenties
you
filled
Committee
deem appropriate.
that
store
leaving
be
law
is
not
the
of
understandable
documents
securities markets, but also to re¬
possible
appear
presentation
such
upon
is
as
circumstances
standards
the
past transaction.
only to raise the over¬
professional
vestor
promulgated thereunder.
to
all
not
more
required
*
conjunction
ing any-proposals which I might
stat¬
regard
-
^. making his decision to buy, and
with the self-regulatory efforts of
the Exchanges themselves, done
of
purpose
..
can
men
have for amendments
:
was
business, that this
has,
If
that it did in
".
readable,
—
ment
*
view, and I believe it
in the securities
in
,the security, and I think it does,
(certainly it
is clear to me
a
of
1
by all fair-minded
•1934 to
',■% formation before he purchases complaint
Commission, have been
both to the
investing
public and to the members.
I
certain minimum prescribed in-
the Act, or pursuant to the direc¬
tion of the
effective instru-
an
what
confirmation, or the security. This is permitted by the
*
as
as
not
informing the public.
defect
;
pre-
has
prospectus
of
that' the
my
adoption
for
and
communications,
telephone
law.
rules of -the
the
of
The
should
the
■
and purpose. The Exchanges know
what is-expected of them.,
delivery of
and
can
of
'
intent,
in
and for
period
iand the prospectus is being de¬
livered only after the sale with
;
itself
clear
The
interstate
about.
is
statute
the usual
cover
cases.
Because
oral
au¬
bring them
"safe"
was
being made through the
V
thority to effect changes in rules
and institute needed reforms, in
the event that the Exchange
would
most sales of new
.
the
in the "stream
are
prospectus
ry'serious
parent,
with
full year after the
which it
proved to be
person
to
those
by the average investor.
As
know, the registration state¬
Act
the
Frear Bill which would extend the
corporations, after
>:;ment
The, role ; of the Coitimission1
analagous
se-
official
one
all
(d)
retained
regulation of, their
such
more
realistically
cise^ defined.
->
the
of
be
much initiative and responsibility
in
as
assume
the
regulatory
have
statute,
a
the
vV; distribution
that
.
the
of
from
informative
you
adoption
.and
Commission'
the
the
cally
Exchange,
the
Bill
in favor of and would
of distribution.
Everywill concede today that this
period is far too long in practi-
-
effect
Exchange Act
Curb
for the
also
to
on
New York
to
sales
one
v
statute
mindj such substantive- changes
appear
quest
subject
all
»•'. period
v
<
while
is
rec¬
to
•'
as
of
riod
national securities exchanges, such
ment
of
1934
sure,
am
be
and
am
proc¬
among
with
distribution," and it arbi¬
trarily adopted the one year pe¬
favorable.; You
I
to
com¬
use
(2) I
right
few
them, prospectuses will
become what they were intended
or com¬
interstate
Frear
the
file
+
Favors
in
believe, that with
cooperation
to
instru¬
hibits.
the securities
•
New
the
of
has been generally
bers.
"
of
the
of
pres¬
of
legislation itself and of
administration
pared i";:; state¬
v
■
is my opinion that the effect of
both
o
;
■
York Curb Exchange is concerned,
Securities and
C
operation
in-
strides
during
the
past
in the simplification
And I
ess.
a
offering of
dhe n securities.
The
legislative
history of the Act clearly shows
that Cojigress intended that such
delivery is necessary only while
impact of the Se¬
Exchange. Act
the
upon
the
must
the
or
transportation
recommend
Prospectuses
date
:
as
of
mails
great
years
any
sale,
merce.
statute
use
taken
direction
where
payment—involves
munication
"ident-ifying"
or
Purities, for
-
my own.
So far
the
.
clarified
jurisdiction
tion
-
essentially
are
the
buyer of ordinary lay intelligence.
However,
the
Commission
has
ently be delivered by issuers, protective and information provi¬
underwriters,
and
dealers
of sions of Sections 12, 13, 14 and 16
registered securities, in connec¬ ,of the Securities Exchange Act of
majority of the members of
but
The
prospectus.
(c)
Favors Frear
the Exchange,
permit
"screening"
-'
a
offered.
Federal
or
ments of
interested
statement in advance of the of¬
mean more
or
is
of
J
listings for exchanges. Advo¬
shortening of holding period under capital gains tax.
cates
who
be
thereof—solicitation,
use
knowing about the securities
should
-
offerings
new
industry
through which it
should
transaction
,
grade from registration by permitting their sale by
public circular; (7) freeing of brokers or dealers from require- \
menfc to supply prospectus on unsolicited orders of new offer¬
not be sold without furnishing prospectus.
ascertain
law
delivery
securities
device
a
being
institutional
ings; and (8) reduction in period during which
part
The
needs
in
can
period.
(b)
-
may
Offerings
and should be
the
11
,
-
-
-
ap-
2S
12
The Commercial and Financial Chronicle
(1084)
businesses.
American
Stressing Income
there
there
financial advantages of putting their savings
to work to gain income. Urges stressing value of having extra
income, while on social security during old age. Says actuarial
should
and
consist-
XSRSnO
ently stress
"income
on
savings,"
the
for
of
good
of
many
business with you because you
have shown them how to get a
better return on their capital. But
I would guess that just as many and for some investment firms—a
public and
ourselves; that
majority of
your service
there
to
the
are num-
erous
ways we
of I
use
value
c
e
o
wealth,
Eugene J. HabaS
-
or
savings,
purchasing
for future
nize
the form of money
in
a
eucalyptus
As
ment
membered the story I was
posited
in
otherwise
the
come
bank
is
or
with
earning
more
than
be
to
been
always retold by
I've
dealer
"How did you
the
investment
asked him,
after I
business?"
is de-
invest-
investment
Coast
West
a
the
from
fraternity.
nearby
description
savings
a
endowed
thrift
of
nearby
a
a
the wealth
as
soon
in
or
vault—will
bank
fit.
tree
freshing and arresting experience
to read and - hear about the vir-
whole
watertight
.container—buried under
draw your new custo-
I suspect it would be a re-
mers,
recog-
I
Only when the wealth is in
story.
which you
from
large,
at
tues
the
not
is
public
stored
power
You and
use.
that's
that
the
For
n
o
mists say that
merely
not
have
You
seriously discussed with them, in
-specific terms, the benefits of a
simple better income return,
t h
arithmetic.
E
capital.
of
the
increase
to
this
do
can
through
desire
their
think of
which is keyed
customers,
as one
in
He replied that he had
officer
bank
a
for
many
local investment firm
had frequently asked him to join
their organization; that he was
that
years;
a
it
becomes
attracted by the invitation because
purchasing power. It gains he thought he'd earn a much betthe capacity to increase in amount,
ter living for himself in the seor to increase the standard of livcurities business.
"But," he said,
ing of the owner of the wealth.
"I was a respected citizen in my
Yet millions of people today re- town and I just couldn't reconcile
gard their savings simply as a myself to the loss of face that
store of purchasing power—money
would go with becoming a securto be spent later on. The extremeity salesman."
Our business, in
ly low rates of return paid by that man's town, was not fully unpower,
stored
banks
and
other
conventional
savings institutions since the middie
1930's
ble
for
probably responsi-
are
this
attitude.
Certainly
derstood,
This,
despite
the
fact that every day we are work-
ing
with
trying
people,
to
en-
these nominal rates have not made
courage the
people conscious
of their wealth—not in competi¬
tive wealth
work.
Things
of how produc-
be, if it is put to
can
different
were
a
few decades ago. During the first
30 years of this century,
savings
banks paid their depositors be-
savings
a
terested in
able
was
pounded
twice
in
as
only
time
3%
more
to
"Leave
say,
in-
deposits
your
At 4% interest
com-
annually,
you'll
have
many dollars by 1927—
17 years." The span of
within
double
officer
securing
here.
money
bank
which
becomes
23
a
dollar
will
with
years
a
compounded
return,
which
many Federal savings and loan associations
it
is
35
return
paying today.
are
when
years
the
But
rate
of
is 2%, the maximum that
most
savings banks have been
ing since the middle 1930's.
cently, in
my
pay-
Re-
home state, savihgs
banks have been permitted to in-
interest
crease
man
or
ward to
woman
rates
now
to
can
21/2%.
A
look for-
seeing each dollar put in
the
bank today become two dollars—in 1980, which is a
long time
off. It's no wonder that so
many
of. those who practice thrift
today
do not appreciate all its
potential
use
other
or
savings
institutions, but by
plementing the services of
sup-
such
institutions,
„
„
.
have
tell
more
often
what
we
to offer in the way
return
come
that
and
of
we
have
better in-
a
how
important
be to the person accumu-
can
lating wealth
in possession of
or
it.
People are more likely to open
the door to that kind of talk than
to talk of
investing for profit anybecause the natural associa-
way,
tion
with
the
word
"profit"—in
most minds—is "loss."
that,
can
and
when
deliver
with
the
much
than when
we
goods
you
call
it,
promptly
talk-profit.
can
'
comes.
we
greater certainty
growth of capital
or
More than
income
talk
we
be
'
or
a
Profit,
whatever
.
the
far
so
as
1933.
securities
He went
business
and,
I know, has been both a
successful and respected man ever
tual
disappeared with the
In
I
believe
that
an
new
times.
opportunity
exists for all
of us in the mutual
fund business to
capture the pub-
it's imagination, to build up publie acceptance of mutual
funds and
"PITaddr...
Mr'
by
H.bas befor. ,h.
Conference, San Francisco,
Calif., February 19, 1952.
'
Mutual
Fund
Now, how
funds
can
as
we
present
income
say,
I must be
my construction.
very
mu-
producers?
careful in
A dollar depos¬
ited in the bank represents
a
fixed
liability of the bank toward the
deP°sitor;
average
an
a dollar invested in the
mutual fund represents
ownership
interest
in
quarter
from
We cannot cite compound interest
there will
dollars
to how many
answer
be
in
10
20
or
for each dollar invested to¬
day in a mutual fund. *We know
years,
of
the dollar invested
mutual
a
from
value
in
will
fund
shares
in
vary
day to day and week
many
diverse
to
all
value
year
its
of
10
or
one
no
will
hence.
years
that
to add
shares
be,
If I
tell
can
will
be
five
were
today
of the
what the purchasing power
dollar
10
to
one
years
hence, it would be true but I'd be
getting
from
away
main thesis.
my
that
means
national
our
Union
is
life,
over¬
internal waste
on
to
our
economy. Warns
fate of United States.
on
we
are
gin soil of the prairie and plains.
Today the old frontier is gone and
the signs that once read "Go West"
the
"We
lined
the right
men
ahead,
the
as
situation
G.
Theodore
de¬
Gronert
re¬
intelligence, foresight and
quires
on
confusion
has
'
way."
our
concerning
been
front.
under¬
the
on
Within
generation
a
had
the
have
we
the
19 th
century,
millions
of
and
Americans
their
secure
of
The
mands.
of
have
straight
or
In,
witnessed changes in world
policy
beyond the imagination of states¬
the
to
of
are
Age song:
by equal uncertainty
period
directing
left,
Jazz
affairs
international
and
we
destination.
our
a
of
elect
we
know where we're
the
internal
driver's
him
of
don't
And
ingenuity
recognizing
problem
when
going but we're
and
in
certain
care
point
every
and
given directive
a
the words of
ex¬
to
us
compass
not
perts have dis¬
played
direct
now
to follow
installation of these directives
So I won't say it.
None of this
have
Trans¬
portation
tell
mutual fund will be, or what the
cross¬
we
cross¬
roads.
the
today what the income from
instruments of
communication,
ing signs at
the approaches
in
a
counting
are
depends
found it
necessary to set up warn¬
to week. The fact is that no one can
first real knowledge
geography through the
global
storming
of Asiatic beaches and
the conquest of European
bridge¬
heads.
Suddenly
America
has
technological efficiency and with
found itself forced out of its in¬
energy typically American we
sularity into an alien world—a
come
return provided by mutual have met and mastered this prob¬
world that has also been confused
funds. Once we have pointed out lem of our physical cross-roads.
by strange and inadequate land¬
the obvious truths, as I have just
Today, however, America has marks.
done, it is possible to talk about arrived at another cross-road less
Once the European world knew
the
various
ways
of
putting apparent to the eye and not as
a certain if limited sense of
unity
wealth to work, to earn a wage in quickly recognized by the hurry¬
in allegiance to Christian
doctrine,
mutual funds.
ing throng as our multiple cross¬ now
even that tenuous unity has
In this connection it should be'
ing or clover leaf intersection. I
disintegrated for Eastern Europe
noted that it is easier by far for a refer to
that
less
tangible but
because
barred
from
discussing
with
the
public and with customers, the in¬
man
or
kind
choose
to
woman
ticular
of
a
ticular
selves.
take
a
kind
work
or
par¬
steady
work
minimum
a
future
is
—
or
But the
civil service job—
a
at
of
moderate
a
risk,
and
available
to
no
any
dollar of wealth, at any time. Just
deposit it in the bank. The equiv¬
alent of the research chemist's job
—paying
average
moderately well, with
risk aqd the chance that
he might some day discover a new
drug and be rewarded therefore—
director's
job
with
—
is available
in
way
speculative fund
a
for the wealth that anyone wants
to put to work that way. You can
fill
in
tions
the
to
scale
suit
of
job classifica¬
yourself.
But
once
enter the reasonably wellpaid classifications, with attendant
risks, you will find in mutual
you
funds
as
their
that
of
jobs
want
to
And
wealth.
whereas
women
only
variety
a
customers
your
for
wide
as
note
most
normally
can
select
men
hold
too
and
down
job, their wealth can be
working in two or five or ten dif¬
one
ferent
kinds
of
jobs
simultane¬
ously.
My analogy has its weaknesses,
most analogies do, and you may
not
like
other
it
way
at
all.
It is just an¬
dramatizing what
of
regularly recommend to cus¬
tomers, i.e., that they ought to
you
have
an
challenging invitation to de¬
more
cision
social
our
and
political
cross-roads.
them¬
for
motion picture director.
with
a
research chemist
a
equivalent of
pay,
their
Few people, indeed, can
job any day, as a civil serv¬
ice clerk
a
of
par¬
for
work
wealth than it is to choose
the
On
physical cross-roads
make, the
can
but
the socio-political
on
the
choice
of
left
we
selection
wrong
the matter of minutes and
in
miles;
for
society
our
the
rective.
ahead
Right
in
a
reach
far
in
straight
or
troubled
decision that may not be
of miles and minutes
eternity.
We
have
mat¬
a
but
created
of
gadg¬
ets that may
eliminate the drudg¬
work, we have also made
of
another
some
that
blow
can
Stardust
to
uni¬
our
the
and
people who have taught the idea
of the fatherhood of God and the
brotherhood of
have advanced
man
ideologies
that would
the
long last
in
and
world.
Maybe
fathers
and
rule
over
ruin
our
great-grand¬
our
great-grandmothers
who traveled at the space annihi¬
who read
coal oil lamp
a
privileged
were
I've
and who
to
reasonably
successful in avoiding the subject
of arithmetic.
Every
ested
I
come
to it
machines
mutual
would
car
Jones's.
and
keep
In that
impact in
it
to
man
and
woman
is inter¬
the actu-
on
page
35
but
today
of
two
re¬
broken
world
the
on
wheel
the
wars
British
On dune and headland sinks the
fire
And all
Is
one
Lord
our
pomp
of yesterday
with Ninevah and Tyre
God of Hosts be with us
yet
Lest
we
This
the
and
forget, lest
decline
end
to
left
United
the
only
of
forget."
we
Britain
balance
two
meant
of
power
the
powers:
States and the communis¬
tic imperialism of Russia. For the
first time in the history of modern
man the
struggle for the survival
of
civilization
centers
the
about
results
of
you
never
these
through
powers
the
has
spoken
declared
and
written
word of Lenin and Stalin that de-
be
cannot
mocrary
allowed
to
exist
with
up
the
your
an
of
conquer
life, and any¬
assurance
European
If there
were
that land
Session
ference,
address
of
33rd
that
we
entangle¬
new
Dr.
by
Bankers
City, Feb. 4,
tionaries
basis
worlds
Trust
1917
has
the
been
political institutions
of the U. S. S. R. of 1952.
Denying the dignity of
man
as
expressed in religious creeds and
ignoring
of
of
the
hard-won
modern man,
the proletariat
the
freedoms
dictatorship
makes mock of
personal integrity and denies the
validity
tions.
of
The
international obliga¬
story of the evolution
of free institutions from the
flower
May¬
Compact, through the Dec¬
laration of Independence and the
Constitution may be the answer to
at
First
Trust
Con¬
the shams of Leninism and Stalin¬
Division
of
Association, New
1952.
of
for the
the vir¬
was
Gronert
Mid-Winter
sponsored
American
York
by
A
pre-atomic Amer¬
now.
the
Continued
was
out
ments.
*An
in knowing what
to
Britain was the moving force in
maintaining the balance of power
never
watch
had to wonder whether your new
way
been
being
During this pe¬
riod the proud kingdom of Great
side by side with Marxism.
century old ideology inspired of
sations. The gadget that controlled
Karl Marx's "Kapital" and cham¬
their gadgets did not
break'down,
by the nihilistic revolu¬
there were no juke boxes or pari- pioned
ate
far
into
an
ladywrestlers
on
television,
missed
many of the blessings of the ma¬
chine age, but there were compen¬
were
Thus
came
of
rivalry between two
hour,
their Bible by the light great continental powers and one
lating speed of 40 miles
of
Using Actuarial Tables
Kaiser Wilhelm
or
challenged the existing status,
same
some
wealth.
II
(its workings invisible to
eye)
verse
of
XIV, Napoleon
interna¬
ter
the
was
America
rary
ery
cen¬
directed by the application of the
balance of power and when Louis
alliances
highway di¬
left
or
our
For
diplomacy
recognize the truth of Kipling's
society has for contempo¬ prophetic words:
a challenge to make
"Far flung our navies melt away
tional
a
that
of
communists.
European
dress the balance.
or
the problems involved
misreading
turies
highway
straight ahead carries implications
beyond
of the dominance of anti-
religious
right
or
their savings in a ica
you lived in the best of all
in government bonds, possible worlds and if there ex¬
and some in insurance protection
isted on the international horizon a
before they look
at the higher national policy known as the Mon¬
paying,
"risky"
jobs
for
their roe Doctrine—it had no immedi¬
bank,
linking together what I have
been saying with what I am about
to
country
vary
to
Soviet
bring destruction
can
day of crowded highways
a
funds
quarter and from year to year.
that
In
and
tables for the
as
since.
virtues. Some of the old-fashioned
rewards of thrift seem to have
to
avalanche that
survival of Western culture
fixed, predetermined rate
Dividend payments by
mutual
of
the
offer
cannot
strength
bureaucracy under heavy defense and rearmament outlays
to bring about our economic and
political collapse. Points to
our
unbalanced Federal budget and
resulting inflation trend
as
of return.
V-
forgotten that I didn't
end my story about the banker,
The epilogue is amusing in a way.
into
business
a
contends
estimated and Soviet leaders
in the mutual
we
Gronert
and
Guaranteed
Income
saver
bonus if it
I haven't
His bank failed in
a
above normal pay, while it lasts—
than
doing,
been
Fixed
reiterate,
ture
Funds
Let's
usually
is perhaps the income fund's story.
At the extreme, the motion pic¬
.
Better Income From Mutual
3V2% and 4%, and shopping
around would have brought the
depositor 4V2% in some years. In
1910,
wise and fruitful
tion with the local bank
tween
is
is it today in many
nor
communities.
Prof.
In addition,
better rate of
grow.
can
fund
customers do
your
Though not belittling Communistic threats
to
No
serve
that
risk
To
the public
pie are not fully conscious of what broadcasting the virtues of thrift,
their savings can accomplish for including
especially the advanthem- that we in the mutual fund tages of putting wealth to work to
business
can
earn a good wage.
You will say
to
Chairman, Dept. of History, Wabash College, Crawfordsville, Ind.
re¬
return., v-';->-'■
be tools of Mutual Funds' salesmen.
My thesis is that too many peo-
By THEODORE G. GRONERT*
reasonably
considered
the
In
sizable
capital
and pointing out
can
and
be
tial reward because the amount of
opportunity exists for mutual fund organ¬
business by broadcasting virtues of-> thrift
tables and arithmetic
return
second,
there
capital, poten¬
tially, but there is sizable poten¬
Mr. Habas points out
izations to build up
a
stable
is
Co., Inc., New York City
&
modest
unless
Thursday, March 13, 1952
.
America at the Cross-Roads
risk of capi¬
no
.
are
possible reward, either,
no
ward.
By EUGENE J. HABAS*
Hugh W. Long
is virtually
tal and
From Mutual Funds
They
In the first,
different things.
very
.
ism,
but
in
this
year
1952
fine
*
*
Continued
on
page
16
Volume 175
Number 5098
.
.
.
The Commercial and Financial Chronicle
(1085)
labor's
demands
for
higher tion—down. But there had been have been creeping steadily up,
and here again the infla¬ no change in 15 years.
making possible additions to surSince the action of the - Board
tionary pressure was relieved.
plus and opening up the prospect
The fact that the people of this has evoked a good deal of discus- of higher dividends,
sion pro and con, and since the
country were able to set aside so
Next came the
action of the
much of their income instead of adjustments of rates already made Federal Reserve Board in
on
Savings in Today's Economy
ELLIOTT
V.
13
pay,
BELL*
Editor and Publisher of "Business Week"
unpeg-
Mr. Bell asserts
we
have been experiencing a recession within
boom because
a
people are choosing to save their extra in¬
the shift from spending to saving equalling 7% of all
consumer outlays. Maintains sudden
drop in savings-rate could
give enormous stimulus to business. Characterizes institution
come;
of Federal
income tax
institutions
as
is
undistributed earnings of savings
of monumental stupidity
worthy
the present tax-happy Federal Administration."
of
.
.
.
that
One of the most significant de¬
velopments of the past year has
been the emergence of savings as
a
dynamic factor in
national
our
Most discus¬
sions
of
the
out¬
look early last
empha-
year
the
sized
great
arma¬
ment program.
Government
spending
huge
scale,
short¬
on
a
ages
of mate¬
rials
needed
to
bring about a
prices. That was
universal
is
all the
set
more
noteworthy when
agaiinst the background of
re¬
we
shorter
or
can
be interested
without
for
®
it
incomes
rose
so
a
and
fast
man
or
money
who
woman
into
debt.
right¬
ing
an
income
national
soaring,
have
While
boom.
a
plants have been hum¬
and
ness
have been witness¬
within
armament
been
spring, in the
inflationary
economic phenomenon—a
recession
ming
last
enormous
lines of busi¬
many
been
in
has
the
doldrums.
The
generally feared upsurge of
prices, wages, and costs has either
convenience
were
the
two
that
tor in attracting business to a sav-
'
income, but to
wife
a
has
put
savings bank
Here
that
who
is
has
or
a
never
today's high level of per¬
incomes, changes in the de¬
cisions of people to spend or save
have
a
very
sharp impact
on
busi¬
ness.
In the first quarter
American
people
of 1951, the
saving
were
about 4%
of the income they had
left after taxes. This meant they
saving at the rate of $8V2
billion a year. By the 'test quar¬
ter of the year, they had raised
As
to
At the
for
their
cia' bank thrift account rates, just
a? £avlI15s a
-°an £ iS
higher than savings bank dm-
far
before been
above
a
a
nation where
subsistence
Among the larger commercial
banks in the big cities there has
been an awakening of interest in
"the little fellow," accompanied
level
5V2%
form
one
of
them.
by drives for small accounts,
opening or acquisition by merger
of
numerous
neighborhood
branches, and increased emphasis
The War Bond drives with
on
their emphasis on rate heightened
this desire for a better return,
home
a
financed
two
times
it
before
with
what
a
Nassau.
its impact
on
business.
consumers were
It
meant
holding back
their
spending at a $14*6 billion
clip. That shift from spending to
saving was equal to 7% of all
consumer
outlays.
Small wonder the
ness
and
had
some
♦An
the
those
who
savers
into
money
savings
everything
put
it
be
must
that
presumed
This advertisement appears
move
business
rough going.
address
by Mr. Bell before the
Savings and Mortgage Confer¬
ence,
sponsored
by
the
Savings
and
Mortgage
Division
of
the
American
Bankers
Association, New
York
City,
March 4, 1952.
Fiftieth
only
as a matter
on
over
5%
not that
the
losing value at
per
is
annum.
an
a
optimistic hope for
shows that inflation
can
Meanwhile,
have
posits
had
a
effect in
fires of in¬
cember of last year to $2.3
or
11%.
This
action,
oj record.
for both labor and
Sale of the
above shares by certain stockholders has been
arranged privately by the undersigned.
ma¬
terials.
The
higher
savings
of
the
American
people
is
the
main
reason
why the expected short¬
ages in may
lines of consumer
goods failed to show up. The lev¬
eling out in the rise of the cost
pf living had a moderating effect
Blyth & Co., Inc.
March 10,1952.
been
losin*
Continued
billion,
turn,
brought a slowdown in consumer
goods
manufacturing,
thereby
lessening the pressure
on
the
com-
thrift
de!
a
wave of rate increases by
which a number of commercial
Common Stock
in
many
lar&er Buffalo banks launched
savings in
multiplied
good
a
savings institutions to get a highfr re in,-»
' J5116 9? ?
Cody, Wyoming
The sharp increase in
1951
a
as
fs a re7ult ofaffio the
Husky Oil Company
be halted
by savings.
regarded
their point.
was
mprf,ial banks in other narts of tho
or
future, last year's experience
banks
they can provide
the
savings
banks
rates
170,000 Shares
rate of
Whether
commercial
to prove
most
of them don't expect the dollar to
keep
This, of
commercial
could providej and the raising of
jnterest
they
banks
the
that
savings and loan associations
in 'such large amounts last year,
economy
textile busi¬
television
The
contend
ing
same time, incomes were rising so
damping down the
they were actually laying aside flation. Faced with a
slowdown
savings at the tremendous annual of
consumer
buying,
retailers
rate of $23 billion.
began a liquidation of inventories
Just think what that meant in
amounting between May and De¬
that
brings
course,
institutions, particularly bank into keener competition for
the federal savings and loan asso- the type of money savings banks
ciations, began to give greater and are also seeking,
greater stress to rates of interest
Early last year a widespread
in their advertising. Savings bank movement
toward higher rates
dividend rates, which had most- began among the banks in Nassau
ly been 1V2%, began an upward County. There is only one small
movement in 1947; and within the savings banks in Nassau County,
next three or four years, nearly all and it has no branches. In recent
savings banks raised their rates to years, the savings banks have
the maximum permitted by Bank- made no secret of the fact that
ing Board regulations.
they think something should be
That was the situation last year done to make it
possible to bring
when several developments
savings bank facilities to the popbrought the interest rate question uious and growing communities of
Savings
By'SS
the
what is sometimes called de-
partment store banking.
and
were
the level of saving to 10%.
For
it had been the ac-
cePted practice for savings bank
rates^ to be higher than commer-
the bulk of the people have beer*
always
bought
and
war
one-half
At
sonal
_
accounts to the 2% level.
many years,
paid for it.
it.
save
.
,
to ralsf rates on special interest
•
the
cided last year not to spend their
extra
,,
Th«re then developed a movement among the commercial banks
20-year history of the Bank¬ tion had increased'to 47%.
The
Board that rates had been low
point in holdings of mortgage
Up to this time interest investments
And why has this happened? It modern direct reduction type of lifted.
was
also
the
low
has not, dear friends, been because mortgage should now be sitting rate regulation by both the Fed¬
point in earnings of the savings
of OPS. Nor has it been because pretty. They own their home out¬ eral authorities and the New York banks. With the rise in the mortof anything else the government right — or soon will — and the Board had
portfolio average earnings
gone in only one direc¬ gage
has done. .Primarily, it has been chances are it has a market value
today anywhere from one and
because the American people de¬
not appeared or been moderate in
scope.
and the
scarcer,
without reducing
proved
rewarding in good times a*nd bad.
Boom
a
became
competition for deposits became
The growing importance of sav¬
ings has been accompanied by an
increasingly keen competition for
The farmer who uses part of
savings accounts among savings once more to the fore. First there
his income in times of high prices
banks, savings and loan associa¬ was the cumulative effect on savto
reduce the mortgage
on
the tions, and commercial banks. This
ings bank earnings of the shifting
farm is making no mistake, no has
helped stimulate a general out of
government
matter what happens to the dol¬ advance in interest rates culmin¬
^securities and
into higher yielding mortgages, a
lar.
ating in the action of the Bank¬
process that
had been going on
ing Board of the State of New for several
years.
At the end of
Thrift Pays
York a month ago in raising the
1947, mortgage loans made up
Similarly, the home owner has interest ceiling on savings and
only 28% of the earning assets of
found that thrift pays off even in thrift deposits from 2% to
2%%;
an age of inflation.
This was the first occasion in
The man and
savings
we
trend of bond and mortgage yields.
Money
to Dividends
was
so
off
Recession Within
pressures,
year ago.
The resultant readjustments set in motion a rising
a
possible to increase savings ings institution was its location,
consumption ex¬ Given a good location, the rate of dends.
In recent years, however, there
penditures. What people did was dividend paid seemed to matter
ly called the Age of Inflation.
not to cut down on past levels of
have been signs of growing dis¬
very little.
There is no currency anywhere in
spending but to save the increase
the world that has not depreciated
similarly, commercial banks content among ^the commercial
in their spendable incomes.
were
able to attract and hold a bankers
at least 40% in purchasing power
oyer this relationship,
large volume of so-called thrift Commercial banks in this state
New Flexibility
during the past dozen years. In
accounts even though they paid, bave experienced a considerably
most cases, the loss of value has
This flexibility in the spending
as
a rule,
substantially less than slower rate of growth m recent
been much greater; and in
some, and
savings activities of large
nearby savings banks and savings y.ears than haye sayings mstituit runs to nearly 100%.
numbers of people is something
and loan associations.
tions, and earnings have beert qnThere
has
During all this time, the thrifty new in the world.
Gradually
that situation satisfactory for a long time.
i;
Our "Age of Inflation"
The present era has been
tor who has made less than
past year.
early
Attention
there was no .great most important considerations. Up
sacrifice of living standards in until about the
end of World war
last year's big saving spree. Con¬
II, the most important single facsumer
defense,
opinion.
of
one
Actually,
and other basic
Since
of
gjng the government bond market
keener
longer period.
were
face
views
For a good many years after the
banking crisis of the early thirties. savings depositors and shareholders paid little attention to the
rate of dividend paid them. Safety
raw mate¬ then,
persuaded
the
American did not greatly affect the economy.
desperately tight—but people to save so much money But with savings equal to 10% of
what happened to
prices?
The last year? The answer is fairly income,
the situation
is* quite
general level of wholesale com¬ complex. In the first place, not different. A sudden drop now to,
modity prices actually declined. all of the billions of dollars saved say, 5%
could give a terrific
Consumer prices—what we used by individuals last year went into stimulus to business, just' as the
to call the cost of living — have savings
institutions
or
invest¬ jump in savings tliis past, year
shown only a negligible rise in the ments. A large part went to pay exerted a big drag on business.
rials
the
matter.
Little
savings today have a far greater
Well, we had military spending compound interest on his money power than ever before to act as
these past 12 years has suffered either a stabilizing or an unsettling
rising to a rate of $36 billion a
influence. When savings amounted
year, and we had record-breaking a negative return.
business spending for new plant
This is hardly the sort of ex¬ to no more than 3 or 4% of in¬
and equipment. Steel, aluminum, perience to promote thrift.
What, comes, changes in saving habits
copper,
in
member of the Banking Board on
a
go
may
changed. During the war, full employment, high wages, and a
government bond has had a nega¬
shortage of things to buy resulted
and full em¬ tive
return; that is, the interest that they can, voluntarily, make in an abnormally high rate of savployment were earned on the money has been shifts of 5% or 6% in the dispo¬
ings—as high as one-fourth of inall
calculated less than the loss in value of the sition of their incomes, without
come.
The accumulation of large
further rise in principal.
hardship.
savings made people interested in
the well-nigh
This new situation means that what these savings could earn for
Actually, every saver or inves¬
for
Elliott V. Bell
This reemergence of savings as
decisive factor in the economy
cent years.
economy.
business
a
such that
now
out the
large part of
the population can cut back on
spending, at will, without suffer¬
ing hardship. The American
standard of living is today so high
that at least 40% of it is postponable; that is, made up of things
on
"a piece
an?•
be felt throughbanking system, you
spending it is a matter of some
long range significance. It means
that the level of personal incomes
on page
33
14
(1086)
The Commercial and Financial
Chronicle
-
potential
Next
Step Forward in
early
profits by selling too
rise, and by-buying too
on a
soon
Formula
Planning
vanced to
One
end
By HOMER FAHRNER
Registered
Investment
Adviser,
Corning,
was
of
other
Calif.
current
dex
had
'
for
changed
the
upon
assumption that stock
forecasting is impossible.
market
mar¬
There appears to
tion
for
this
One
ly
hard¬
can
open
of
an
his
arrived
ssumption.
^a
,
obtain
be good founda¬
mula
a
each
values.
sound
median,
at
the
the
of
In
it
30
order
stocks
divided
is¬
factor
finan¬
their
the
by
sum
*
construction.
whatsoever
while
making
1..nnt
make profits out
The
no
r\f
forecasts, and,
+l-io
estimated
debt, outstanding
farm
homes
was
marlrot'c
market's
'"
'
at
the
•
-
cial
a
w e
fore¬
caster
ing
Homer
Fahrncr
ture.
this
But
complished
will
by
often
another
soned article
or
well-known
be
made considerable progress.
A
ac¬
immediate
decline
in
and
on
and
the
on
bear
vestor
through
market
is
a
bullish forecasters
at
stage of
any
cycle.
bull
or
indicate
Which
that
the
when
few
times
forecasters
formly bullish
incided
the
they
bearish
or
neatly
with
were
has
the
and
1 to
the
near
between
each
matical
p r o
chances
are
trend
b
the
to
mathe-
will
deflationary
con-
known medians currently in wide
use meet these tests
obly partially.
in
co¬
other
stead
The 10-year moving average is far
too slow for any extended infla¬
times
Those medians set
move.
be only
can
am
this
of
Meed
mortgage loan piacea ioaay
.
,
.
arty
<
about
the
more
vocal
S2 & Co
aid Members
be
ever
fully invested
in
even
oartyln
nf
decline,
one
must
advancing market
cline,
ket
and
that
assume
will
that
an
shortly de¬
a
declining
mar¬
shortly
will
advance.
Any
long-term chart of stock
prices
would have shown these
early for¬
mula
planners that
often
case;
such,
than
but
otherwise,
having once
assumptions
fixed
dogma
they
is
made
soon,
which
all
more
not
the
these
became
later
ex¬
perience to the contrary has
only
partly eroded.
I
New Approaches
Here
and
formula
we
proaches.
Some, without
sound
are
value
slipping
Director and
Meeting the Selection Problem
;>■
The
ners
pioneering
also
were
problem
of
formula
up
how
to
vidual stocks without
upon
technical
a
approach.-
They
or
plan¬
against
the
select-indi¬
falling back
sound
value
sidestepped
this
problem very neatly by rational¬
izing that since the individual se¬
lection of stocks
was
secondary to
the timing of
purchases and sales,
the actual selection
left
to
other
could
well
organizations,
be
pre¬
sumably
(but
without
publicly
admitting it) organizations which
the
thh
JahseS
fi-
individual
security
oil
selection.
were
or
missing
a
substantial part of
fiPanced
ent
to
o
oJ th^Hp
onerator
operator
Oil
in
in
fore
their
WesternPCan" 100of
Western Can-
f
i
W
T
all
ating
.ajing
in
m
to
ern
slipping dol-
maturity.
In
in
such
is
Lcc^ing somT
ones' For
the sPak/o{ balancPe> it m°ighst b™r
? * 16331
poor
inform
Mr
a^
them
of
Crn^ /n
the
press
some
Canadian
oil
properties..
the oil situation in
general.
°f
trUSt6eS he may
Wer6
°Ver 35
years of age, so
contribute
the modern viewpoint.
Building movements are sub¬
ject to cyclical variation. Booms
followed by
depressions, de¬
pressions by booms. The revival
u
Tr
0f building after a lull is
are
I1V
.
,
always
rharartpri7Pd
hv
trial
a
and
prrnr
apcterizea by a tnal-and-error
period.
for
a
Architecture
new
new types of
seek
more
reaches
style, planners
out
propose
subdivision, builders
economical methods of
construction, and building supply
introduce
men
Wars
spur
through
of
A
new
produce,
new
necessity,
manufacture
materials,
and
methods
progress
and
construction,
shortage of housing
creased
cost
of
space,
building,
new
irila-
bor-saving household appliances,
shortage of domestic help, in-i
creased
speed of travel and
com-
munication, and a changed pattern
of living all contribute to* these
changes, with the
result
that
the
new house is vastly different from
the old.
11 is
since
now nearly seven years
Day. Enough time has
V-J
tions
in
of the innova-
some
housing and to
the advantages
or
almost-of these features
measure
disadvantages of
as
the
purpose
cover
some
observed from
the
refinanced
at
a
reassessment of the future
being
toTntrodurP
result
mav
iuae may result
that amortized loans-these changes. It is
be readjusted far be-* of this discussion to
eco-
reoresent?ng
•nomlc llfe of the improvements,
oif romnanfpq Lp " For thls reason> and because of
Western Canada.
western Canada
the large PercentaSe of loans now
investment dealers
and
the
the
The
party is
extremes,
l
,
°This Prac^tice
Canada Petroleum Association an
organization
nrdoH
caflv
own
Pr0P" the viewpoint of a practical aphigher praiser, and to evaluate such facts
leveL
requires the in connection with mortgage lend' reappraisal of Jhe real estate and ing procedure.
erty
of3 TransS Emo^re aonf c!f BT tdd
and
re-
value. I mention this because
te de; it Indicates
n^c^
are bkely to
Corp. ^lvr
Mr.
Canadian
Canadian
point
his
p! -°j f m°rtgage
Carried to
this attitude
on the basis of the Pres" Passed to test
market and
er °f
CrncQ
ent
4
Manager
J
United
'd °" 71 £ul1' In ?he maj®rity
were
pf- cases» the Properties
4^oVlorir ?o
clock
at
of
A
later this problem must
ap¬
periodwill be set aside during the
be faced and solved.
cocktail party to answer
perhaps
any quesIt was not
long, however, before tions regarding the United Caback to
.formula users realized that
they, nadian Oil Corp.'s properties and
Re¬
tion of these
mortgages have been
*
14
the problems
confronting the dethe sound value approach to.
velopment and operation of West-
Sooner
new
approach.
find
precision.
„
used
now
planners trying
realizing it,
(Lie
there
some
of
a
forecasters, the pioneer formula bear market.
Mathematically, it house cocktail
planners closed their
eyes to any
is relatively simple to
thl
construct SnitP
alternate approach to
profitable the necessary equations which will tel on March
market
operations
and
set
up perform
this function and with
their formulas on
the premise that
since one could not
predict wheth¬
er the
market would
advance or
«
eye
•
.
servations
the
to
tell
Conservative
i0an policy.
,
.
of
however
ZrtlZe und'erSg
run
*
design
cannot
living
houses all
a? econ°roy,W-uncertain al?d
explosive as tbe present, such, a
<*uallty °f conservatism is a neces-
pr0Vide the pillar of strength
,
,
in
one
of
of
rows
Annraisals
Ne®d °f Conservat,ve Appraisals
The mortgage loan placed todav
may
•
•
in
unwill-
are
home from that of his neighbor,
This may not apply to the new
deposits, generation.
,
;
where
loan'business and its
inherent strength and weaknesses
has, prompted the theme of this
as
.
the
accept
rank
are
kind
to
identical
trus-
acutely conscious of the
as
,
we
represented
Xr a^predetermined^elapsed ^Sta'6manag®ment.business.Nothtimt the saTe should be madlon^ SKSSFg?
dScSTttS
after
the
advance
has
its
.
They
the
ing
of
trade-delaying device. In- of tomorrow or it mav
result in
of selling on any
predeter7 the future headaches of. the real
„
depressions.
around
individualists, and
poHcy of
good or as course. S i m 11 a r 1 y
purchases thd
savings institution.
*■
the judgment of the ones should be
made after the next re^
The Two Groups of Forecasters
7
;
«
doing the setting. One median action is
complete. At least one "
Now these forecasters who
Appraisal of Residential
are
which does meet all three tests
plan has already adopted this in- V
most
prolific in
their
;
■
Properties
forecasts fairly well
may be calculated by novation with immediate
may
well
be
divided
into
improve-; : This discussion is to be limited
two going back
10 or 20 years and ment in its
timing operations. This to the first sten of the
groups: those who base their pre¬
underwritaverage the half-way
samp
nlan
thp* trpnrl
(half-way same plan alsn usps tne trend- ••• J"
7?
unaerwrij,
also
uses
dictions on technical
ing process—the appraisal of the
factors, such between the year's high and
low)', following method in its individual
as the. number of
shares traded, or
property
It is further limited to
figures for the first two consecu¬ selection nf stneks
is iurujer iimitea to
odd-lot purchases and
sales; and tive years. Then this
'
average .is
—f/..appraisal of residential prop-those who base their
Formula planning is: stlll/in
forecasts on combined with the
half-way fig¬ infancy a"d it will be 25
jt&;#rties. It-will not ^extend to the
■or maybe
fundamentals, such as earnings ure for the next consecutive
process of rating
the borrower's
year 50
and dividends. The latter
years before all its
method to find a new
advantages .credit or to those broad economic
average.
This is. and
is frequently of late
weaknesses will be fully
ap-/ trends
which affect
being repop- repeated for each year in
the
entire
turn,
ularized
preciated. In the meantime it is
as
the
"sound
value" until the current
mortgage portfolio.
average is ob¬ well to.
approach to forecasting.
keep eyes and ears open,, i
; During
tained, which is then assumed to. to
the later years of the
any innovation which will, im-.
Historically, the sound value be the current median.
War
and, carrying through to 1945
There are
prove formula-planning
approach to market appraisal must
efficiency.* and ^ 1946, I
other and even more
appraised numerous
satisfactory
have originated much
earlier than
7 :
* '
;
'
*
/ •;
- residential
methods, but this one is illustra-*
properties for an inthe
technical approach.
: stitution
Indeed, tive of the class.
■
which subsequently sold
7 ;; ;*
had
the
sound
value
:
approach
the entire portfolio to an
For the same reason that
out-of-)
the
really been sound, in all likelihood
■a
m
median
must
n
follow
| ■
■■ q
the
i
town bank. These appraisals were
infla¬
the technical theories
would never
If 01(1 (lOCKtail r
tionary pattern, it also seems wise
-based uP°n a 1940 dollar and were
have had an
opportunity to spawn that at no
a iaoitincrciv
!
Pn
i*
Processed during a period of real
point in a bull market
and grow.
should the investor ever be en¬ an
is extending esta£e. liquidation. I, have been
\ Having made the foregoing ob¬ tirely out of
stocks, nor should he dealers
ij}torme$ that a substantial pormembers
bad
and
raised in the early 1900's
in
mortgage
reverse.
under everv formula plan to disnlare anv
every iormula nlan to displace any
processes
»
edges." For
this reason, there is a tendency to
favor the old, the traditional, the
of
estate
novice
that the 0f over 50% of its total
three that" a
The, growing importance
to
,
fact that my bank is a partner in
reai estate ownership to the tune
b i 1 i t y
a
five
established
once
tinue rather than
government influences. The better'
predominantly tionary
\:
visually
wrong.
cross
tee, I
and
uni¬
were
line
price
mark
Industrials
it must
it-
statistical ; evidence
booms
"burned
will
bull and bear market top
The writer's thesis is that this
bottom; it must immediately fundamental mathematical
proba-T.'discussion.
adjust itself to the inflationary bility. should be
incorporated intcu
ones
seems
average
charted
of
the nation. As
Lockyer
a
major
the stock market
Indeed, research
when
Dow-Jones
half-way
find
bearish
the
time;
real
Albert W,
more
unerringly
of
widely in short
,,
have been "agdd in the wood" and
the residential
price7:
a
is
,,
points
the
in¬
to
established
once
And
fluctuate
(or other average),
goes
The
loss
trend
self.
with
market
alike.
at
never
This
thesis and that is that
one
likely to continue than'reverse
not
intervals
predicting
shortly-to-follOw
market.
.
meet
,
at
institutions
little
these tests: it must be fairly stable
talk by some other
or
.
„
satisfactory median must
of
calmly conventional, and to shun the new,
the the different, and the unconven-^
magnitude of tional in housing. To mention one
the stake now instance of this, I call your attenheld by banks tion to the so-called "look alike'*
and
loaning housing. Those of us who were
Trend
This
and
well-rea¬
forecaster
an
stock?
been
part
accept
,
fu¬
near
that
early
never
Success Through Following-the-
best statistical
I
have
the
sion.
They have the benefit of
experience and a wholesome fear
out-
end
1945.
publicized
group
analyses when the bull market has bases its
operations primarily upon
market, if not
immediately then in the
theory
present their very
substan¬
tial rise in the
a
,
a
standing
the
in
century, lived through two
World Wars and a severe depres-
the
amount
^*7 7; t. ■
;
-current
which only tends ;to
the
reaffirm
predict¬
the
of
was
order of 250,
.
who
men
up
the
This figure
over
Dow-Jones
determined
11-
some
'
;
v
known
tradi¬
in
permanency
brought
1951
of
170% increase
in
used
daily
magazine
more
mature
non-
represents
determining the a much more reserved lot than
Average.
Now those who are given to voicing
or
attend a if formula planning is to be based their predictions at every opporr 7
market
dis¬ upon the assumption that all fore¬ tunity, the techniques of this quiet ;
cussion
with¬ casting is impossible, then it seems class of market operators seems
out reading or very unlikely that any satisfactory to have been overlooked
entirely./
hearing a dis- median can be derived in ,this by the formula planning iratermanner.
course
Indeed, the median .so nity.:; • /.'
by
'v
sue
in
end
$53 to $54 billion.
they make no
the whole, are
on
there's
volume of mort-
gage
of
of the
Since
movements.
Concludes
tional architecture of homes of the past.
coming
market behavior, yet consistently
same
appraisals, if this business is to prove
pi!2ar of strength and. not a future headache. Cites method
of appraisal of old
houses, and pros and cons of new styles of
,1
class of investment
a
who,
forecasts
comprising
stresses need for careful
/
.
pioneers in for¬
manageis
the Dow-Jones Industrials and then
Calling attention to growing importance of mortgage loan
business of savings institutions, prominent real estate appraiser
;
planning have overlooked is
that there is
to
seems, he
values for
sound
/.J.
7
delay. A better price could,
be had by waiting.
prominent formula en¬
thusiast espoused a median based
upon
By ALBERT W. LOCKYER*
particular
a
Thursday, March 13, 1952
President, New York State Society of Real Estate Appraisers
a
What the early
cently
an¬
Note that all these called
amount.
ket's established trend.
All formula planning is premised
quarter;
stop-loss orders;
use
wait until the Federal Reserve In-:
forecasting. Notes recent refinements in formula technique.
Maintains formula planners have overlooked investment mana¬
who have consistently made profits from following
calendar
to
prices of the average had
the median; a fourth to
crossed
in
gers
delay trades until the
the
was
ad¬
this defection."
overcome
to
been
third to delay transactions until
a
Investment adviser analyzes formula plan theory and practice,
asserting pioneers were motivated by difficulties encountered
have
props
..
House Values Today—
And Tomorrow
the first decline J Several
on
makeshift
.
T'f.
placed
on
old
houses,
I
First let's
features of
roughly
discuss
old
define
residence
anY
depression of
25 years ago.
some
houses.
the
old
of
Let
house
the
us
as
built
prior to the
1930-about 20 to-
WOuld like to discuss some feaDuring the years
tUreS an1d fac? Pertaining to the immediately following 1930 to
*'apPraisal of the older ^Pe house, about 1936, few houses were built
The average age of savings bank m America; and those built, in the
,
trustees is not young.
least' they are usually
To
say
—,ddres5
the
by Mr. Locky„ before
Anniversary
Savings
and
Conference sponsored by the
Fiftieth
Mortgage
*
York
the
a group of
City, March 5, 1952.
'
period 1936 to 1941 are sti 1 relatively modern in comparison
to^
^xhfVd" nouse
house
.
„
cipaiiy
-
irom
suffers
suiers
incurable
prin-
p
obsoies-
nIS C£nCe andJrora de£®rred mainl?:
Continued
on
page
26
#i
Volume 175
vwift- .msi m*inw ww«
Number 5098 ."'. " The Commercial and Financial Chronicle
(1087)
j
■
■
...»
J.jj
m-V,;"-
20 Years of Progress
LANE
REGISTERING
a
for 1951
$21,008,507,
the
.
27%
\
:
before Federal
$5,210,535,
a
income for
net
$2,877,000 for
amounted
taxes
$2,276,789
to
pared with 1950
share
on
net
the
$3.16
or
than: in
homa
or
El
:
number of shares; earned
increased' from
,
:
"
.New field stations
on
capital stock traded
extras
berta. Additional sales offices
and major improvements
Engineering and research
in
ment
end of
Additional
1951, Lane-Wells -Was operating\77 service
and sales stations,
including 66 in this
country,
Venezuela, and 3 in Canada.
8 in
;
-
-:
:
CONSOLIDATED
BALANCE
SHEET
AS
ASSETS
SI 17,413-92
accounts) V"
Inventories
reserve
.
.
.
$
*.
T,$30,769.
.
Investment in non-affiliated company
y
?
42
ciation)
.
.
.
...
.
'
and
other
Deferred charges
intangibles
...
.
.
.
.
made
was
present
OF
DECEMBER
31,
.
.
.
.
Bullet and Koneshot
.
GENERAL OFFICES AND PLANT
66 Branches in
•
•
.
.
...
-
,
.
1,088,765.00
225,000.00
2,358,337.41
1,350,000.00
192,389.57
720,000.00
1,247,714.00
8,183,943.06
•
Packers
COMPANY
'■
Radioactivity Well Logging
•
5610 SO. SOTO ST.
•
subsidiary, 8 branches in Venezuela.
Lane-Wells Canadian Co., a
on
-
Request
- r
Bridging Plugs
Principal Oil Fields of the United States
Petro-Tech Service Co., a
'
$15,366,149.04
Perforating
Electrologging
*
.
.
IANE-WELLS
J
our
LIABILITIES
ACopy of the Annual Report will be sent
■-
of
services and
1951
.
8,039,051. 90
178,065'. 49
417,079. 47
several
new
r
$15,366,149.04
v-V
on
....
.
328,497 05
accel¬
made in the equip¬
products and services.
Long term debt
Minority interest in subsidiary
Capital stock-Authorized 1,300,000
shares, par value $1, issued and
outstanding 720,000 shares
Capital surplus
Earned surplus
Property, plant and equipment (Less
S3,483,223.00 reserve for depre¬
Patents
were
Federal and foreign income taxes
estimated
[
2,7-78,902, 43
.
were
considerably enlarged,
was
Accounts payable and other accruals
Note payments due within one year
2,093,783.28
for doubtful
.
progress
V
Gash and advances for working fund
Accounts and notes receivable (Less.
programs
COMPANY
subsidiary companies)
^
stock.
and instrumentation used in oilfield services.
improving
LANE-WELLS
-
Four
.
long-range projects for providing
.
num¬
year.
1951. The staff of research, .design, and
development engineers
Colorado;; and Midland and Tyler,:Texas. At" the
1951
paid in 1951,
were
on present
erated
opened in Denver,
stock¬
the New York and
the end of
at
Maria, California; Sterling, Colorado; Perry,
Oklahoma; Bowie, Snyder, Luling, Columbus, Gaines¬
ville, Haskell and Refugio, Texas; and Stettler, Al¬
were
to
104,510 shares
increase of 425 for the
an
quarterly dividends and
totaling $1.50 per share
opened during 1951 in
on
distributed
were
Angeles Stock Exchanges in 1951.
Stockholders of record
Santa
was
May 2, 1951. There
bered 2710,
,
were
100% stock dividend
our
Los
$2,265,644 to
$2,731,353. Net investment in plant, property and
equipment increased $513,139 to a "total of
$8,039,052.
A
holders
of
assets
facilities in field camps at Anaco,
new
Tigre, Jusepin, and Las Morochas, Venezuela.
com¬
$3.21
■
current
City and Seminole, Oklahoma. Petro-Tech Serv¬
ice Co. added
1950,
share,
per
income of $2,308,895,
present
in 1950.
more
additional shop and office
or
completed during the
was
Louisiana; Casper, Wyoming; Farmington, New
Mexico; Great Bend and Russell, Kansas; and Okla¬
gain.of'
1951, after providing
65%
or
new
1951
year in Los An¬
geles, California; Corpus Christi, Houston'and Sny¬
der,; Texas; .Houma, Shreveport and New Iberia,
'
.
FOR
Construction of
facilities
over
the $4,095,455 reported for 1950. Con¬
over
Net
taxes, was
REPORT
income
gross
increase of 21%
income for 1951
net
foreign income
solidated
per
an
Industry
COMPANY
ANNUAL
$17,299,366 reported for 1950.
Consolidated
and
OF
peak, consolidated
new
to America's Oil
ELLS
SUMMARY
was
Through Service
subsidiary, 3 branches in Canada.
LOS ANGELES
58
15
16
(1088)
The Commercial and Financial Chronicle
Continued from page 12
stand at the cross-roads
we
as
might note
ing of
America at the Cross-Roads
of signs
score
a
the dangers ahead
road to security.
must
be
sealed
brave
by
deeds.
On a perimeter of 19,000
miles, communistic imperialism is
pressing for advantage from Korea
through Western and
Southern
Asia to
Turkey and along the Iron
Curtain
in
Eastern' Europe
stretches a boundary that has experienced the tensions caused by
the
open
subversive
or
measures
of the Politburo.
Through six long
been
called
have
build
alii-
to
upon
expand
ances,
years we
billions
the
only time
to
deal
a
challenge,
with
such
one
to
munism.
This
belief is the
basis
our
have faith in the integrity of the
essen-
the
from
individual, if we still hold to the
traditions,
the
heritage of the beliefs
of
our
fathers
in
the
past, the lessons of the frontier fatherhood of God and the broththe sacrifices
and
and
peace
of
war
soldiers
the
we
can
erhood of man, the hour is not too
late, for if we hold that faith and
act upon it even the obvious failures and the grave derelictions of
renew
Not
so long ago a cabinet officer
800 years before the sun went
for the constant pressure exerted declared that few of us are hurt down on their once proud emin Europe and Asia, for the Polit- by inflation. I would say to him, pires. Hitler ranted about a Nazi
buro wishes to exhaust American ask the man of 65 and his wife hierarchy that would
last
one
power and await the time when whose early payments as of 1914 thousand
years—only to have his
such depletion will bring us to pay back 35c and of 1936 pay back mad career end in the bunkers of
the breaking point. Then, accord- 54c.
Ask
the
industrialist
who Berlin.
Now
imperialistic coming to the Marxian theory, we will must estimate costs of replace- munism with one-fourth of the
defeat ourselves,
And
this
at
ment
point
the
writer
ten
dollar
hence when the
worth 40c or if
years
might
be
in
this
meet
with all this effort
expression of
liberties.
And
tial
however, of
direct aid, in finds a certain area of agreement the present rate of decline keeps
challenge. Yet with the practitioners of perma- up less than 30c. Ask the banker
have so far nent
revolution, for there is a who has to persuade me to buy
barely held the line and some hard core of truth in the implica- government bonds at the very
Americans have begun to despair tion that internal conditions would time when
my 1941 bonds are reof the Republic because they feel be the basic cause for America's
turning me a purchasing power
that we cannot keep up our prodi- fall. It is with this point that the of 60c on the dollar.
gal giving forever and that Rus- remainder of this paper will be
I expect to buy more bonds begrant
order
spiring
Thursday, March 13, 1952
spell the ruin of the United States that conditions all our decisions our faith. These are fateful times
and once we are in the throes of both on the domestic and foreign but is is no time to despair of the
economic chaos we will be easy front. I refer to the problem of Republic.
The Roman and the the present
prey for the shock troops of Corninflation.
British civilizations endured for to a future
and
armament
on
But today I have
challenge,
words
we
warn-
...
we
be the invitation
can
of
conservation
construction. There
ahead but
to
have
the
of
ancestors.
our
civil
the
bor
we
despair
no
more
Republic
Valley
of
wars
Great
the
and
rough days
are
right
than
Forge, the
Confederation,
Rebellion,
Pearl
Har-
all
brought with them a
challenge and an appropriate re—
world
in thrall, dreams of world sponse.
1952 brings-a new chaldictatorship — but other similar lenge, difficult because it is more
representatives of force and nihilism
in
ended
Russia
will
ultimate
not
in
succeed
as-
of ultimate futility of the
surance
disciples of anarchy would be
solace
indeed
if
the
and
disconcerting beless tangible.
These
dangers, however, are no darker
to the senses of our generation
than were the crises of an earlier
it
cause
per-
its system, but the
petuating
universal,
failure,
is
day to that age. Living in the most
productive area known to history,
poor
American
dream should fail.
with
scientific technological
concerned.
For at long last we cause of duty and hope, duty inThe important, the immediate equipment undreamed of by our
have come to realize the real rea- spired by the knowledge that the consideration is the survival of
grandfathers, we need to recapa
basis in fact but the prophets son why America has to fear the
young soldier in Korea is sacri- Western culture, and that survival ture
their
optimism
and
their
of despair have overestimated the developments of the next decade
ficing infinitely more than the is linked with the fate of America, sense of destiny. If we
keep faith
power of the U. S. S. R. and igcenters in our internal weakness, home folk; hope because I am one In our hands at the
beginning of with the past -and master the
nored certain evidences of Amer- Russia cannot defeat
us, but we of those who believe that Amer- this half
century lies the last best present surely the future will be
ica's power. On the internal front can defeat ourselves.
ica, as in the past, will act before hope of modern man. If we still secure.
sian
power
quer
Europe.
Russia
will
has
ultimately conThis pessimism has
faced
difficulties
that
would erupt into Civil War except
for the constant vigilance of the
secret
police.
dations
forced
Thousands of liqui-
millions sentenced to
and
labor
grim
are
evidences
of
disruption and discontent, unhappy satellites, exploited by the
Politburo are trouble by economic
difficulties which have resulted in
the flight or liquidation of former
Marxists. Jugoslavia's defection is
underlined by the rise of Titoism
in Czechoslovakia and Poland, and
the
U.
S.
S.
R.
maintains
its
hegemony in Eastern Europe solely by assassination and terrorism.
Russia's
ability to hold the line in
Eastern Europe arises not so much
of
out
of
Russian
the
strength
weakness
of
but
the
out
war-bat-
tered satellite states and the ruth-
less
elimination
of
all
critics
of
the Cominform,
Russian
natural
derelict
civilizations,
mute evidence of the moral and spiritual
Bread
and
story of France's internal
circuses, corruption,
citizenship can be anarchy and her ultimate collapse
before the psychopath, Hitler, is
potent for destruction in industrial America as they were in contained in this brief recital of
imperial Rome. Waste, inefficien- frenzied finance.
When
nations
indifferent
an
as
cy
and corruption
in
English
eviis
cannot
be
the
mean
in Latin
as
same
of
while
Stalin's
the
Marxist
deficit
cured
industrial
production
even
though
the
means
adopted by the Politburo tends to
defeat
its
ends
the
pressure continues.
aides,
long
as
as
unrelenting
the
mad
financing
gyrations
somebody
of
must
the piper and that payment
doubly high when you ar¬
range a
budget on the cost of
spiral of inflation. The budget for goods this year and find the dollar
i952 is dominated by the
expendi- cost upped 20 to 25% by 1953.
by joining
''gimme" groups whose demands
gjve more impetus to the vicious
for
tures
with
wars,
than
more
pay
comes
Thus
inflation feeds on itself
past and present,
$50 billion allo- and snowballs into a veritable ava¬
lanche
down
omy
the
into
particular
Federal
allotments,
Government's
1. Direct
agricul-
up
in
engage
these
and
1952
dollar will be divided into:
and
of the decline of the
British Empire is involved
at least in part with the decline
of the pound from $4.86 in 1914
2. Aid
3'.
to
allies-
war
debt)
clauses
can
carry
our
destruction.
the
in
econ¬
Escalator
contract,
wage
re¬
of parity
prices, cost
of living bonuses, have been of¬
fered as a remedy for injustice,
but
they merely create more in¬
8c equities, while they offer a tem¬
7c porary refuge' from reality. That
reality is expressed in the phrase
-
and~"pen~sion
4. Veterans
Stalin and his
they aim at world
10c
"debt""(largely
on
that
to
adjustment
military expenditures 58c
Interest
~
Total
83c
"You
can't
something
get
for
domination, must strive to achieve All other
(.Even mink coats have
expenditures
17c nothing."
industrial equality with the counto be
bought at a price.)
4o
nf
But
,QP-0
try that "Pravda" denounces as
t ese euP+er)u*~ pressure groups continue to func¬
decadent America.
tures may be necessary, but this tion and' when one segment of
t
...
observation does not alter the fact our
In 10R1 this
1951
economy secures a concession,
decadent
Amer- that our
economy must be strained
others must hasten to get their
P?? }rjthJriS and t0 Produce goods which will not share while the getting is good.
population of the U. S. S. R. th?
produce more utilities but will go
two-fifths the area far outranked
Every time we ask for special
as
sheer waste into the
hungry
consideration, every time we join
nrnH^Hnnr^mihS^a^glC-fieldSOf maw of the so-called cold war. a "gimme" group we are con¬
?nria
^ following com- Russian communistic imperialism tributing to the rising tide of in¬
panson indicates.
is acting on the
principle that our flation and
giving aid and com¬
Tinu
U~SR nation can be undermined and ul- fort to the Politburo.
Stalin,
Oil UnitT
71/
\
timately destroyed by disrupting following the example of Lenin,
^V
--------,!/2
J
our economic system through dis- has declared that America
would
H n
19
1
locating the regular channels of be the last bulwark of
,.
.
.
.„
o
f ars,UrJlt.s"
m
Pfminmpnt
on
In
the
single
state
(Illinois)
all-weather
Russia;
has
and
on
areas
a
The
roads
American
age
actual
the
basis
of
the
and
ratio
of
12
to
the
conduct of
war.
a
S.
a
of
mile-
of
5
to
1
lstory
the
and
slow
heavy and like
nosaur
to
the
to
death
has
control
too
its
seeds
di-
and
small
unwieldy
serious hanR.
in
the
weakness,
But Joe Stalin is not
communistic
failure
to
hypothesis.
balance
long
view'
to
of
attain
time
of
by
what
basis
for
Rus-
depression will
our
averse
itself
,
_
5
page
observe,
"the.price of Kreuger and Toll stock
inevitably
was
headed for zero—short selling or no
As the
ket
as
explanation for
a
short selling."
fall in individual stocks
whole, the short seller is merely
a
a
the
or
mar¬
convenient scapegoat
alibi.
and
Debunking the Short Seller's Omniscience
According to
age-old widely-embraced credo, the short-sell¬
an
ing bears constitute
the
coterie having more omniscience than the
a
public, or at least with professional abil¬
"edge" over the uninitiated in anticipating the
price movements of the market as a whole as well as of individual
issues. The de-bunking of this fiction constitutes one of the most
interesting and constructive elements of the study. Even in "the
old days" bear raiding frequently was unprofitable.
In recent
times too, as demonstrated on several charts, it shows that leading
speculative stocks have shown a far greater tendency to increase
the size of their short position as their prices declined. Over the
rest
of
ities
affording
speculating
an
entire interval from 1931 to 1939 it is shown that the short position
of
the
market
declined
by 90%
in the face of
an
absence of net
(for ex. in the "Standard Statis¬
Index); and during shorter periods the bears
not illogically enlarged their commitments as
change in the market average
tics"
Price
Stock
often
more
than
prices fell, in lieu of the obviously more intelligent converse.
Getting Bearish at Bottoms
In 1931
and
1932 the shorts sensibly reduced their position as
prices declined, and likewise 1935 and 1936 the two series
rose together.
But from the time of the July 1932 depression bot¬
tom to the close of 1933, the two series moved in opposite direc¬
tions, the short position falling while prices were rising. In 1938,
after the market had reached its bottom, prices and the size of the
Our
answer
and find in
by the leaders of the U. S. S. R.
production
and
achievements
answer
sian threat if
we
to
are
every
ready to
use
less
us
our
advantage. Inselfishness and bureau-
complacency
part in
we
can all play a
ultimate collapse unmeet the challenge given
our
because
of
our
place
as
the
bulwark between an orderly
society and world revolution. And
one
ism
of
of
and
our
pioneer
enterprise
a
birth
new
liberty loving Americans
are
rifices
aware
must
The comparison
make
of
we
of the danger
facing and accept the
we
our
to
sac¬
meet
it.
great tra¬
dition with the shoddy
ideology of
Marxism
should
inspire
us
to
renewed
effort.
From
the
May¬
flower
of
Compact, the Declaration
Independence and the Consti¬
tution
we
can
also
moved
in
opposite directions, the
former de¬
while prices advanced—once again evidencing
the bears' foible of subscribing to the fiction that the higher they
go, the cheaper they are.
These findings of the Survey showing lack of short sellers*
prescience in appraising the relative height of the market as a
whole, accords with this column's observations on numerous occa¬
sions; and with the findings of others, as those based on examina¬
rapidly
,
tion
fluctuations
of
in
odd-lot
short-sellers'
short
commitments.
Thus, Garfield A. Drew in "New Methods for Profit in the Stock
Market" has reported that the odd-lot short seller has been even
less "right" than the average odd-lot trader; that odd-lot short
selling
tends
to
points, and vice
The
reach
versa
its
maximum
around
the
market's
low
(p. 205).
Macaulay study further concludes that short-selling op¬
are
largely concentrated in leading issues with active
erations
to
avoid
difficulties
the
subsequently
entailed
in
covering in issues with thin markets; and furthermore, that short
selling
really
of stocks other than market leaders, especially of those
are
actually not real short-selling at all, but
inactive,
merely selling against the box of one variation or another.
Today short-selling is discouraged not only by the stringent
SEC and Stock Exchange prohibitions on order executions, but
also by the subjection of such profits to ordinary income-tax rates
in
lieu
of. the long-term capital gains ceiling.
American individual¬
must become
we
interest
ancestors
freedom.
As
can
Rus-
but not abuse
cratic
cannot be made
Every in terms implying compromise or
budget, surrender. We must recapture the
with cheers
short
clining
markets,
poleon or Julius Caesar, is enlist¬
ing Marxist ideology for service
against
representative
govern¬
ideals
furnish the
its
The Russian dictator, who is in
no more socialistic than Na¬
icit finance is greeted
industrial
of
fact
every complacent defense of def-
Our
the
destruction.
to hastening the realization of this ment.
S.
,
Observations.
system car¬
ried within
own
body.
railroad
fja s postwar policy. She believes
that
another great
top-
the mesozoic
disaster because it
brain
becomes
automotive
theory of the
decadence of the capitalistic
system and the inherent
weakness of
is
but declared that the
down
goes
a«n y th?ir phi" techn°l°gical
attrition
institutions.
He
recognized
the
of achievements of
private enterprise
system
of
Of this
decide
jthe
itself, capitalism
Jey 2Lnn(i/r acl?ieve directly to- efficiency,
day. The Marxian
democracy
in
The Marxian theory is
that, left
to
a
salong with the limitations of production, the masters of the Kremlin aie fully informed.
Therefore
^eJr^ayrWfi
losophy of the
important
Prlvate enterprise,
more
all
1.
of
lack
U.
are
comparative
to
facilities would be
dicap
has
railroad
an
ratio
field,
than
limitations
power
1
communication
bourgeois
production and consumption that
i
20
_____
.
.
narfjin
equipment
_
Continued from
The
ing necessity to build
and
The story
great
decadence of man.
From Egypt
through Rome to modern Europe to $2.80 in 1952. And if you look
it was not the invader from with- at the financial record of France
out but inner decay that brought you note a franc worth 19c in
disaster.
1914, 3c in 1921 and y4c.in 1952.
principles, is also born of the drivtural
it is too late.
cated to the defense effort. Broken
ruthlessness
result
The record of the past 70 centuries is studded with evidence of
recapture
the
in-
The
Valuable
Conclusions
Setting forth the over-all conclusions (1) that while in the early
days short selling often exerted a temporarily disorganizing effect
on
the
market
price movements of
as
a
a particular stock and sometimes of the
whole, but (2) that it was never a serious factor in
determining the larger- and longer-term movements of the market
in general or even of individual stocks; (3) that its influence on
major market movements has been completely negligible in recent
years; and
(4) even the sporadic outbursts have been eliminated by
the regulations and policing of the Securities Exchange Commission
and the New York Stock Exchange Commission; the Macaulay
study is performing
a constructive service for the investor, the
speculator, the academician, and also for the enlightenment of the
conscientious politician.
-
1
Volume 175
Number 5098
Commercial and Financial Chronicle
The
...
(1089)
v...
„„
^
CONSOLIDATED STATEMENT OF INCOME AND EARNED SURPLUS
For the Year Ended December 31,1951 With Comparative
Figures for 1950
1951
Sales, less Discounts, Returns and Allowances
Cost of Goods Sold, Selling, General and
Administrative Expenses
Operating Income
Other Income and Expense (net)
176,034,189.06
154,552,502.91
$ 13,384,428.52
92,233.22
291,632.96
$
12,321,008.55
$ 13,676,061.48
$
1,034,700.63
«,
■
on
$167,936,931.43
$ 12,413,241.77
«...
.
Interest
1950
$188,447,430.83
Long-Term Debt
Amortization of Debenture Discount and
Expense
$
839,272.50
30,058.56
Other Interest
12,611.27
312,777.08
$
Income before Taxes
on
$
Income..
Provision for Federal Income Tax
Provision for Federal Excess Profits Tax.
Provision for State Income Taxes
191,409.53
1,377,536.27
10,943,472.28
$
$
5,302,000.00
$
'
286,000.00
,
1,043,293.30
$ 12,632,768.18
5,087,000.00
564,000.00
229,000.00
244,000.00
$
Net Income for
Earned
$
5,895,000.00
$
year
Surplus at beginning of
5,817,000.00
5,126,472.28
27,372,160.03
$
6,737,768.18
25,476,604,10
year
$ 32,498,632.31
on
Dividends
on
Preferred Stock ($7 per share).........
Common Stock (1951, $1.50 per
share; 1950, $1.85
i
$
4,355,426.91
3,669,426.91
$815,827.07
1950
•
686,000.00
4,156,212.25
$
$ 28,143,205.40
year
Depreciation provided—1951
_
686,000.00
share)
per
Earned Surplus at end of
$ 32,214,372.28
$
$
Dividends
4,842,212.25
$ 27,372,160.03
$703,831.25
CONSOLIDATED BALANCE SHEET—DECEMBER 31, 1951 With
Comparative Figures for 1950
ASSETS
<
CURRENT ASSETS:
Cash in banks and
on
LIABILITIES
■
1951
hand
$ -7,530,826.46 $
»
Accounts receivable—trade
1950
CURRENT LIABILITIES:
5,933,736.34
(less
accounts
Inventories,
8,952,647.07
9,075,919.78
448,284.60
and notes receivable
425,947.34
at cost:
Leaf tobacco
74,585,495.96
9,124,404.40
6,013,436.71
4,752,392.55
1,126,785.34
$119,593,649.56
$101,023,569.62
stamps
Materials and supplies
Total current
(
*
assets
EQUIPMENT:
3,235,630.11
within
one
year)
Accrued
1950
600,000.00
600,000.00
222,760.43
666,212.75
6,385,940.78
599,333.03
258,071.87
210,256.35
1,126,785,34
$ 37,935,519.13
$ 31,116,017.48
16,000,000.00
payrolls
6,331,960.97
435,069.35
274,500.00
$ 16,600,000.00
taxes
Accrued
-
Other accrued liabilities
Dividends, etc.-funds
on
deposit, contra
Total current liabilities
LONG-TERM DEBT:
Twenty
Year
October
retired
PROPERTY PLANT
AND
3,405,015.63
,
3,862,248.15
666,212.75
revenue
Special deposits—contra
$ 18,700,000.00
Accrued interest
88,118,881.73
Manufactured stock and
$ 26,000,000.00
Twenty Year 3% Debentures (due
1951, $639,172.85;
1950, $686,508.30)
reserves
Other
1951
Notes payable—banks
Accounts payable—trade
3%
1963
1,
Debentures,
due
($600,000 to be
annually 1952-1962)
Twenty-Five Year 3% Debentures, due
...
March
As
adjusted December 31, .1932 by
sub¬
sequent additions at cost, less retire¬
tired
authorization of stockholders, plus
Less: Reserves for depreciation
;
7,141,605.80
6,698,748.90
$ 14,200,835.33
annually 1954-1975)
$ 12,734,785.94
BRANDS, TRADE MARKS AND
Total long-term
debt
—
6,195,450.00
—
$ 31,000,000.00
$ 22.795,450.00
CAPITAL STOCK AND SURPLUS:
...
7% Cumulative Preferred, par
$100 per share:
$
1.00
$
1.00
Issued 98,000 shares
Common,
par
value $10
per
$
9,800,000.00 $
.
680,323.69
$
595,652.70
Unamortized debenture discount and
'450,361.04
$
63,254.60
560,225.45
expense
Miscellaneous
370,212.56
1,690,910.18
$135,485,396.07
$
Issued 2,496,281.89 shares
Paid-in Surplus
f
Y
28,143,205.40
($19,872,160.03
dividends
on
not
3,643,852.64
22,466,818.90
1,237,030.01
I
24,962,818.90
Earned Surplus, as per statement
$
9,800,000.00
share:
Authorized 5,000,000 shares
Prepaid insurance, advertising and
taxes
value
Authorized 99,756 shares
DEFERRED CHARGES:
Total deferred charges
15,000,000.00
Capital Stock:
Total property, plant and
equipment
GOODWILL,....
re¬
5% Gold Bonds, due August 1,1951....
$ 21,342,441.13 $ 19,433,534.84
ments
1, 1976 ($350,000 to be
27,372,160.03
available for cash
common
stock under
provisions of debenture indenture)
1,029,119.86
Total capital stock and surplus
$114,787,476.42
$ 66,549,876.94 $ 60,876,008.94
$135,485,396.07" $114,787,476.42
We'll be glad to send you a copy of our illustrated
Annual Report for 1951. Write P. Lorillard Company,
Other Products
119 West 40th Street, New York 18, N.Y.
Cigarettes
^
J' Leading
ff
W
-
.
\
°f
T7*n
ESTABLISHED 1760
CJ
MURAD
'
HELMAR
Smoking Tobaccos
FRIENDS
INDIA
Company
HEADLINE
VAN
BIBBER
BETWEEN
THE
ACTS
Chewing Tobaccos
tilt
HOUSE
Cigars
P. Lorillard
\
F9TART TSTTFn
'*
l-
*
c
!
.
•
,v
Products
.
tMFFTrA'9 DT DF.^T TDRAfTO MERCHANTS
AMERICA'S OLDEST TOBACCO MERCHANTS
BAGPIPE
L
HAVANA BLOSSOM
nJMftmr,
Hf
The Commercial and Financial Chronicle
.
Thursday, March 13, 1952
.
(1090)
18
The absence of the likelihood of compulsion to lend
funds it needs.
The Haid Money Policy in Britain
By PAUL
Dr. Einzig reports
EINZIG
considerable resistance to a policy
of hard
in Britain," despite growing realization among experts
adoption of this policy is inevitable. Says there is grum¬
money
that
be
among
is a growing realization among ex¬
intelligent nonpolitical section of British opinion
prevailing circumstances the adoption of a policy of hard
is inevitable.
Life-long supporters of a policy of cheap
money have reluctantly changed their opinion
under the pressure of
inexorable facts. In
spite of this the government's task in tighten¬
ing money conditions remains very difficult.
For resistance to the hard v. money policy is
stiffening. Nor is it confined to Socialists. The
mailbags of Conservative members of Parlia¬
Eng.—There
LONDON,
that in
money
to
individual
many
whose
acting on
CONSOLIDATIONS
and
of them
many
office
of,
Manhattan ,8
the
39th
between
40th
and
British businessmen,
with
Vice-President
in
Fifth
Avenue
At
a
of
Assistant
an
B.
Vice-President;
Douglas Hill
and
appointed
was
Assistant Cashier.
of
City
appointed
was
an
$10
Mr. Smith will
Central
York
Savings
has
Bank
though
on a
New
at,
as
wide
Treasury Bills at the "penalizing rate" of 2%, the
it
was
before the increase of the bank rate.
avoid Socialist criticism of
banks
on
Service Fund,
Veterans;
Treasury
was
a
School
in
Bill tenders
are.
was
amount required.
position to fix at will
tors
have.to go back to the Middle
later, in 1940, but this time it
was
down at
case
rely
on
done with Parliament's
and
of
uate
For the present
the
Treasury will
of
School
#
*
#
,
,
.
direc¬
Company,
Strong, President. Mr. Strong also
of
Company,
&
of
Pennsylvania.
is President
Di¬
and
city,
a
stock
March
5
was
by stock¬
N. J., it is
of Passaic,
by Thomas E. Prescott,
The stockholders, at a
President.
special meeting, Mr. Prescott stat¬
"overwhelmingly
ed,
the
of
favor
mended
in
voted
issue
new
recom¬
unanimously by the direc¬
and
by Warren
Commissioner of
Banking for New Jersey. Sale of
the new preferred stock will add
$1,000,000 to the bank's capital
approved
State
will
Stockholders
funds.
have
a
priority right to subscribe to the
31/2%
preferred
ratio
the
.appointment
the
announced
of
40,000 shares of the
at par of $25 in
3 64/100 shares for
of
offering
of
each share of
pire
on
will
be
from
Rights
common.
The
30.
June
ex¬
preferred
into
convertible
common
July 1, 1952, to July 1, 1957,
at the rate
for
ferred
of five shares of pre¬
one
of common and
thereafter at six preferred for one
The current book value
common.
the
is
common
approximately
share, and the new issue
will raise the total capital of the
$129
per
bank to
just under $2,500,000. "Al¬
though present stockholders have
a
priority right to subscribe to the
stock and many have indi¬
new
their
cated
exercise
intentions to
the
right," Mr. Prescott said, "the
directors
expect that a limited
number of shares will be available
for
investment
the
public."
by' customers and
the
to
stock
inci¬
to the plans
A; reference
dent
of preferred
issuance
in these columns
appeared
Feb.* 28, page 874.
of
Bank
River, N. J., which increased
its capital
000
National
First
The
Toms
to
in December from $650,-
$675,000
$25,000 of
the
by
of
sale
stock has since fur¬
new
ther increased the capital to $700,-
000,
in
of
capital
Jan.
.7 .*
The
of
name
Bank
tional
'
v
&
v
.
'
noted
r
•"
Second
Trust
The
was
3, page 36.
" %
the
Bank, N. J.,
to
•
stock
a
The earlier
$25,000.
to the
issue of
our
Red
by
effective Jan. 31,
dividend
■
'"7
'
>•
Na¬
Company of
was
changed
Second
Feb.
1
Bank
on
National
of Red Bank. *•'
*
the
Insurance
Mr. McLain is
Urbana
of
Society
a
*
Applied
*
«
and
*
pany,
of
Publishing
Com¬
has been elected a member
of Rocke¬
the Advisory Board
feller
-
and The
Corporation
Crowell-Collier
Center
Bank
&
Office
Trust
of
Chemical
Company
(common stock $3,040,000) and the
Mr." City National Bank of Philadel¬
Shriver, who has been with the phia (with common capital stock
of $1,000,000)
were consolidated
trust company since 1940, was ap¬
Ralston
V.
Hyde as Auditor.
porting this, the March 3 Bulletin
of the Comptroller of the Cur¬
Clarence E. Stouch, President of
Publication
National Bank of Philadelphia, Pa.
of sistant Vice-President in the bank¬
Case
Sciences
21, the Central-Penn
under the charter and title of the
grad¬
University,
As of Feb.
pointed an Assistant Secretary in
May, 1948. He is presently an As¬
director of Life
Association of America
Carnegie Institute of Technology.
£175 million, compared
the market to supply it voluntarily with all the short-term
McLain
Insurance
the
of major emergency.
preferred
Co.,
addition
pointed Secretary of United States
Trust Company of New York, it
has been announced by Benjamin
board
the
of Wells Fargo
Co. of this
beginning of last year. At the end of
February it was decided not to use the system any longer and by
the beginning of March the last of the
Treasury Deposit Receipts
were
repaid. Although the Treasury has retained the power to
raise money by such means it is not
likely to be resorted to except
in
of
the
Express
of
New York.
was
Graduate
School
Bapking, Rutgers University.
Director of American Elmo P. Brown as Assistant ViceEdward K. Block as
Woolen Company, Western Union President:
Telegraph Co. and Stone & Web¬ Assistant Comptroller; Robert Cra¬
ster, Inc. Mr. Reed is a graduate ven ' as Assistant Secretary; and
Mr.
peak figure of loans under the system was reached in Sep-"*
tember, 1945 at £2,225 million. When Mr. Butler launched his new
at
,
Reed
Mr.
Director
rector of Guardian Life Insurance
Initiated in 1940, the system of Treasury
Deposit Receipts was
extensively throughout the war and early postwar period.
£525 million
from
22
Jan.
on
on
Robert C. Shriver has been ap¬
trustees.
of the University of
;
monetary policy the amount
Columbus
Company,
msed
with
A" McLain
trustee of the United States Trust
the 16th and 17th centuries when some of the Kings
.sought to evade Parliamentary control over taxation by forcing
bankers and others to lend
against their wish. This practice was
brought to an end in 1640 and was not revived until exactly three
approval.
4atnes
and
President
Chairman
Ages and
centur ies
is
American
deficiency by instructing the banks to len$ the '
we
elected
were
-
time the response of the' market to the Treasury
unsatisfactory the Treasury was in a position to
For precedents
Uni¬
Ralph T. Reed and James'McLain
any
make up for the
Northwestern
of
Regents,
Ralph T. Reed
It was empowered to commandeer the resources of the
the form'of short-terrh loans
against'Treasury Deposit
Recepits. If at
Disabled American
of Brooklyn
versity; Newt York Public Library
Advisory Board, and Board of
those rates.
banks
National/
trustee
a
■
placed in
the
Masoni9 Guild. He is a member of
the. Board of Managers, F.P.R.A.
singularly ill-informed, since the banks have lost heavily as a re¬
sult of the depreciation of their long-term securities caused
by the
higher interest rates, it tends to influence the public which in such
result of which the
of
and
,
deliberately increasing the earnings of
Although such criticism is
ignorant than politicians
March
the
Association
The Treas¬
Quite recently the Treasury made a gesture indicating that it
wants to break with the system under which it is in a- position artificially to keep down interest rates on its own short-term borrow¬
ing. During the early part of the war a device was adopted as a
of New
on
government, is a director
of the Financial Public Relations
their Treasury Bill holdings.
matters is if possible even more
Company,
announced
was
by N.
for
now barely 1%.
The dis¬
between market rate and bank rate is therefore exactly
as
of
member
a
Baxter Jackson, Chair¬
man. Mr. Sparks, who has just re¬
turned from Europe on a mission
13
Al¬
is understandably reluctant to raise the cost of its own shortborrowing, and is hoping to be able to create tight money
conditions without any further appreciable increase of' the Treas¬
ury Bill rates.
In doing so it is partly prompted by the desire to
elected
Trust
&
it
York
term
The
been
U. S. Treasury,
Consultant to
meeting of the Board of Trustees the Advisory Board of the 100
of the bank, held on March 10,
Park Avenue Office of Chemical
adher¬
ury
J-'-'
of
Treasurer
has
rate of Treasury Bills is even
market
crepancy
■•••■?
rv
Sparks, First Vice-
and
and
a
few occasions Discount Houses had to borrow from the
their
on
-
Bowery Savings Bank, New York,
of
that
announced
*
*
i
the ground
that the 2% bank rate should first have been made effective.
*
the
$1,000,000 issue of 3V2%
new
announced
of
W.
Robert
President
v
priced at
to
:,\.k*
assigned to the Mid¬
dle Western District.
*
; *
*
was
share.
a
Bank
many
share
a
be located at Head Office and Mr.
Hill has been
of
large group
a
stock
The
the public. The
offering does not constitute new
•financing by Irving Trust Com¬
pany but represents holdings of
private Investors. Irving Trust Co.
has outstanding 5,000,000 shares of
capital stock with- a par value of
*$22
March
on
and
Inc.,
Co.,
dealers.
board
National
Kuhn, Loeb & Co. in as¬
with M. A. Schapiro &
sociation
payer.
on
of
marketing
the
with
5
York by
■
the
of
The
4, Gaillard B. Smith
This means that the burden of the higher
by the taxpayer instead of the rate¬
move
trustee of
a
117,250 shares of capital stock of
Irving Trust
Company of New
Street.
Bank of New York held
borne
to
is
secondary offering of bank
was
oversubscribed
on
March
office at
an
*
*
meeting
directors
corresponding increase of government sub¬
raised from 2%
Chair-
Knapp
A
In Janu¬
44th
and
*
of financing housing schemes. The Minister of Housing and
Local Government announced recently that the additional burden
school criticized the
enlarged
A
shares
the
of
charge
the bank opened
ary
pose
was
*
of
capital
Gaffney,
1
bank
Mr. Stouch
man.
modern
bank's midtown offices.
The government can well afford to ignore this pressure.
On the other hand it had to yield to pressure against the increase
of interest charges on borrowing by local authorities for the pur¬
money
a
.
policy.
When the Bank rate
*
tors
fixtures
and designed to provide the best
in banking service.
It is managed
by George W. Morris, Jr., Assist¬
ant Vice-President, under the su¬
pervision
of
Charles
C.
Fagg,
for their hostile attitude towards capital and enterprise. From
quarters pressure is brought to bear on the government in
favor of moderating, if not abandoning altogether, its hard money
ents of the hard
in¬
was
dividend of $40,000.
convertible
office is air-conditioned,
new
equipped
up
rates will be
York,
New
following the declaration of
was
Foundation of New
York and The Knapp Foundation
of North Carolina, and is a direc¬
tor of various other companies.
heretofore at 295 Madison Avenue.
The
such
interest
the
of
$500,000 to $625,000 by the sale of
Baxter Jackson,
by N.
The
Madison
which replaces its office
Streets,
however, wish the Socialists were still in office,
because their inflationary policy went a long way towards making
sidy to local authorities.
capital
$2,830,000 from $2,790,-
authorized
March 10, at 269
on
Avenue
Others,
a
000
stock
Bankers
and
*
Company of New York opened an .*
govern¬
upward trend of prices. It also tends to moderate the demand
for labor, thereby reducing the extent of overfull employment.
The need for such painful remedies is realized by many business¬
by
the
1
Square,
creased to
-
the
be offset
lin
Trust
productive activities. This is precisely what is aimed at
by the hard money policy. The possibility of a curtailment of bank
credits tends to bring stocks on the market, thereby counteracting
would
Feb.
On
$125,000 of new stock.
;
■
Bank
The
their
men.
Govern¬
holders of the Bank of Passaic and
inclined to play for safety by liquidating
manufactures and by reducing
are
S.
&
#
Franklin National Bank of Frank¬
CAPITALIZATIONS
stocks of raw materials and
their
*
')
ETC.
REVISED
private problems these
is indeed much grumbling among
There
for the U.
post
pean
operation in order to reduce the-
BRANCHES
NEW
NEW OFFICERS,
banking activity.
the clerical work involved in
William
H.
resigned as a
who
ment.
News About Banks
has refused an overdraft, may
an addition to the Socialist vote.
of the
face
of
Mr.
National Bank of Providence, R. I.,
people
Einzijf
have to face they are inclined to become nos¬
talgic for the return of the "good old days" when Dr. Dalton
authorized additional expenditure with a song in his heart, and
when he pursued a policy aiming at the reduction of interest rates
to a level at which they would do no more than cover the cost of
In
Dr. Paul
director
a
acceptance of an important Euro¬
The
ment pressure,
have become
the
Corporation.
replaced
Jr.,
Draper
i
letters from
banker,
elected
Maginn
To offset this effect the Treasury may have
out another funding
debt.
carry
been
of
Commission,
director of Transamerica upon his
amount of its floating
staunch Con¬
servatives, complaining about the hardships
inflicted on them by the very moderate tight¬
ening of money conditions that has been ap¬
plied since the change of government in Oc¬
tober. Judging by some of the correspondence
it seems that every businessman or private
ment contain
has
the change has relaxed the pressure in favor
ing their liquidity.
Executive Vice-
President
and
Transamerica
Since amounts lent on Deposit Receipts
could not be cashed until maturity they were considered to be
less liquid assets than holdings of Treasury Bills. This means that
the disappearance of Deposit Receipts has enabled the banks to
increase their proportion of liquid assets. As a, result there is now
less inducement for them to cut credits for the sake of maintain¬
perts and in the
Maginn,
San Francisco Police
restrictions.
credit
of
C.
Company
Treasury Bill rates remains to be seen.
on
To some extent
businessmen against higher interest rates and
tighter credit. Looks for a new British Treasury funding loan,
because of discontinuance of policy forcing loans from banks
under system of issuing Treasury Deposit Receipts, v
bling
H.
President of the Calaveras Cement
fixed by the latter tends to cut both
ways.
On the one hand the banks are once more in a position to
hold out for higher Treasury Bill rates without being exposed to
the risk of being forced by the Treasury to lend on Deposit Re¬
ceipts. On the other hand the market is no longer exposed to being
drained of funds through large-scale borrowing on Deposit Re¬
ceipts. What the net effect of these conflicting considerations will
Treasury on the terms
the
of New
York, it was announced on March
ing department. Mr. Brown, who
been with the company's in¬
has
vestment
department
since
May,
appointed an Assistant
Secretary in 1943; Mr. Block has
been with the trust company since
June,
1.937.
He
was
appointed
1934,
was
Auditor in
is
with
1950; Mr. Craven, who
the
company's investment
entered the service
of the company in 1937; Mr. Hyde
department,
has been with the company
October, 1934.
,
,,
since
Central-Penn National Bank.
rency
date
Re¬
stated that "at the effective
of
dated
consolidation the consoli¬
bank
$3,540,000,
shares of
value of
000,000
had
capital stock of
divide J
common
into
354,000
stock of the par
$10 each; surplus of $10,—
undivided profits of
and
not less than
$3,260,000." Branches
of the Central-Penn National and
the City National, authorized since
Feb.
25,
1927, and several others,
will be continued by the consoli-
Volume 175
Number 5098
dated
An
the
bank.
The Commercial and Financial Chronicle
;
bearing
item
on
consolidation ap¬
in these columns Dee. 6,
proposed
peared
Blyth
shares of stock.
to
Baltimore,
of
Md., and the Fidelity Trust Com¬
of that city were merged on
pany
The
increase the capital were
plans to
referred
in our March 6 issue, page
ft
in these columns Jan. 24, page 394,
Bank
of
group
plans detailed
In accordance with
Calvert
a
ft
❖
the
heads
Co.
&
security houses to underwrite the
new
2159.
page
Oregon, Mr. Sammons pointed out.
The
New
Swiss
Bank
ft
993;
ft
York
Corporation
has
re¬
their head of¬
staff;
the
to
reserve
credit
to
special
An
francs
will
2,153,049
board of directors.
profits
francs
Switzerland,
francs in
office
main
former
the
of
Calvert Bank and its four branches
operated
are
branches by the
as
if
{f
ft
7%
in 1950.
for
1951
Md.,
Baltimore,
against
Swiss
1,000,000
for
operative
«
1950.
of
097,053
131
a
francs
year
Co.
of
Linder,
of
located
were
19,769,062
Letters
with
16,849,123
at
Banco
Total assets of the
against
should
tevideo
to
2,670,682,-
be
Holandes
Apartado
to: 'Since
of
Mon¬
888,
Bancolanda
Montevideo.
—
other
to
branches,
this
Bank
Montreal,
week
Atkinson
by the
has
of
been
the
bank
He joined the bank in
named
was
Quebec,
He
New
Supervisor
Brunswick
and
1933.
appointed Assistant Gen¬
was
eral
the
ALLIED
Feb. 8.
on
CHEMICAL
&
Manager in 1943.
CORPORATION
DYE
61
BROADWAY, NEW YORK
6, N. Y.
a
as
Bank
Trust
&
Ohio,
Dayton,
SUMMARY
been
has
OF
ANNUAL
REPORT
enlarged from $4,000,000 to $5,000,-
1951
000; the increase became effective
Feb.
Atkinson
Royal
Eastern Ontario branches ,in
(Uruguay), and telegrams
Similar
and
H.
office
Manager
1949.
1911
T.
The
head
Mr.
General
Sucursal
of
announced
bank.
is
addressed
Unido,
Canada,
was
Buenos
office
new
501, Calle 25 de Mayo.
Montevideo,
earlier.
bank's
The
a
of
to
heretofore'-sub-
the
office.
director
as
?|t
of
ft
*
National
Winters
F.
election
from
by an increase of
result of the sale
stock, the capital of the
new
Drs
Aires
entrusted
is
^
*»•
The
Management
office
new
manager
bank at Dec. 31, 1951, were 2,734,-
Augmented
$1,000,000,
1951
the
render
has
$400,000 to $500,000. The new capi¬
tal became
divi¬
a
The meeting also de¬
allocate
to
as
of
carried
Jan. 28.
on
will
complete banking service.
Montevideo office in
a
office
Montevideo
re¬
an
the
of
of
Feb. 29, approval
Uruguay
of
The bank's net
compared
Bank-Unie
management
19
increase in the
National Central
brought about
Bank
of
cided
A stock dividend of $100,000
on
given to distribution of
dend
6%
Fidelity Trust.
capital
was
be
opening of
Mr. Henry Droz was ap¬
ing of shareholders held at Basle,
The
amount
general
cently made known plans for the
the
to
pointed General Manager by the
fice that at the 80th annual meet¬
Company.
Trust
francs
reserve.
of
Fidelity
4,000,000
Hollaiidsche
N.V.
1,000,000 francs to
for hew buildings; and
add
Feb..4 under the charter and title
the
The
francs to the Pension Fund for the
forward.
the
of
Agency
ceived notice from
(1091)
Sales and
14.
ft
revenues
.
The City National Bank & Trust
Total
.
.
.
;
...
.
$506,909,000
...
,
receipts
......
$412 446,000'
$106,708,000
.
.
$502,027,000
4,882.000
$ 74,035,000
40,549,000
operating
Interest, dividend and other receipts
ft
ft
1950
$408,042,000
41,212,000
4,404,000
Company of Chicago increased its
effective
capital,
Feb.
Income before Federal taxes
from
26,
$5,000,000 to $6,000,000 by the sale
of
Net
stock. Earlier
(Feb. 8)
the
stockholders of the bank approved
$1,000,000 of
the
new
month
same
.
.
.
income
Federal income and
Other taxes
.
.
.
.
.
12,731,000
.
splitting the 50,000 shares of the
into 200,000 shares
and
selling an additional 40,000
shares at $40 a share, par $25 per
stock
capital
This
share.
of Feb.
Feb.
❖
the
14
.
.
.
.
:
.
.
paid
3.00
-■
Dec.
31,1950
increased from $540,000
was
Property Account
$750,000; of the increase $150,000
sale
the
from
resulted
of
Current Assets
new
increase
througn
about
came
"
ft'-ft" V
Annual
Bank
National
...
..
.
•
...
.
.
.
.
.
.
.
.
.
.
.
.
$470,958,000
$432,504,000
220,734,000
....
.
200,851,000
26,737,000
25,868,000
........
Assets
a
stock dividend.
First
........
Current Liabilities
1
...........
Investments, Deferred Charges and Other
stock, while the additional $61,000
The
4.84
Dec. 31J951
"
...
Wis.,
to
d
.
$4.65
3.00
.
.
$4.58
8.91
■'
...
:|
26,569,000 "
—
Waukesha,
of
10,005,000
'
the
capital of
Bank
Waukesha
Dividends
.
.
Total taxes
y
stock
common
Net income
noted in our issue
was
.
26,569,000
paid
Per share of
21, page 790.
#
On
Dividends
32,823,000
66,159,000
profits taxes
excess
will be sent
of
...
.
.
,
.
.
.
.
.
.
.
.
V
.
Depreciation and Other Reserves
Capital Stock and Surplus
..,
Report
upon request
.
;
.
'.
92,871,000
•57,643,000
353,770,000
271,788,000
343,771,000
257,809,000
26,800
28,000
;.
26,000
.
.
.
Tampa, Florida, now has a capital
.(effective Jan.
$2,000,000,
of
21)
increased from $1,500,000 by
*son
of
Stockholders at end of year
rea-
Employees
stock dividend of $500,000.
a
ft
*
Edward
C.
that
Announcement
DeRochie has been assigned to the
M.
L.
has
Mr.
made
been
by
President of the
Giannini,
bank.
and
Vice-President
of
DeRochie,
graduate
a
^joined
America in Los
Angeles in 1928 and served as esBank
of
has been established to aid in commercialization of new devel¬
Research facilities have also been enlarged and
improved, and a new building particularly designed for pilot
plant work was completed during the year.
opments.
Construction
■post he now moves to
-.cisco.
at
Shareholders
San Fran-
the
Research
United
made in
1951
new
installations,
the
sulfuric acid, soda ash and coke.
the directors to
of
bank's
.from $12,000,000 to
its surplus
capital
$14,000,000 and
paid-up
capital
..
in
undivided
giving the
a
working capital base of
than $42,000,000, ^according
"bank
more
dride, ethylene oxjde, ethylene,.glycol;;und
v
and
^surplus of $29,000,000. ^ In addir.
jtion, there is more than $13,000,000
profits,
other products and processes
with a number of commercial
important of which are mentioned
Investment
From the end of 1945 to
sulfuric acid.
carried
connection
•;/,
with the
December 1951
U.
S.
Government
securities
increased
in
Marketable Securities
the
account,
representing
by the Company which are listed on the
New York Stock Exchange, had a book value of $30,057,000
on
December 3 i, 'J 9517' Market value on that date was
all
expenditures in
Company's construction
in
$2,817,000 during 1951 to $52,621,000 at the end of the year.
There were no material changes in other securities. ' Items
for chlorine, caustic
from $12,000,000 to $15,-
with
;bank
most
Investments and Securities
>
Projects in early stages of construction include new plants
soda, aluminum sulfate, phthalic anhy¬
stock
-000,000. The action will provide the
the
under Construction.
.Ore., approved on March 4 the rec¬
increase
on .synthetic fibers,
plastics and
projects reached the pilot plant
for the manufacture of chlorine and caustic soda, ammonia,
'States National Bank of Portland,
ommendation
several
and
stage. Progress of research on
also made it possible to proceed
on
include
continued
was
intermediates,
which "substantial expenditures
plants to .produce synthetic
phenol, synthetic benzol and,/a high grade wax, roofing ma¬
terials and nitric acid, as well as expansion of existing facilities
#
of
expenditures in 1951 aggregated $45,231,000,
expected to be. sub¬
Major growth projects
were
,
❖
❖
;
stantially larger in 1952 if necessary materials are available.
San
Diego Main Office and was named
Trust Officer in 1942, from which
Officer
"
almost twice the amount for 1950, and are
istrator., In 1935 he was appointed
Assistant, Trust
V
Construction
clerk and court trust admin¬
-crow
/
the
Loyola University, Los Angeles,
of
•
played by research in maintaining
Company's progress, continued efforts are being made to
expand and strengthen the research arm of the business.
Despite the current shortage of technical personnel, research
staffs have been increased and a new Central Engineering unit
operating revenues in 1951 were the highest in the
Company's history and approximately 23% aboVe; 1950, the
previous high. Income for 1951, after-all expenses but before
Federal income and excess profits taxes, increased, by 44%.
Federal income and excess profits taxes increased over 100%
and net income decreased slightly less than 2%.
; Savings Association to assume the
Officer
Because of the vital role
Sales and
Bank of America National Trust &
Trust
Research-
Earnings
.head office at San Francisco of the
position
23,800
ft
program aggre-
gated $226,000,000 and'yve/e .fiiianced -without recourse to
borrowing or issuance of additional capital stock.
-
items
owned
$76,067,000.
.
-operating i- divisions-
:to E. C. Sammons, President. The
plan approved by the shareholders
provides for
the
of
sale
*'General Chemical
Barrett
100,000
.
.additional shares of common stock
> Division
<
.
,
\
.
Semet-Solvay
Division
Solvay Process
Division
National Aniline
•
Division
Division
.Jf
share, bringing the total
number to 700,000. The new issue
at $50 per
is offered to present shareholders
on
'held.
dend
each
for
At
the
rate
bank
of
July
now
which
1,
of
time
increased
share
one
shares
six
same
was
to $2.40 per
tive
basis
pro-rata
a
'share
from
$2
effec¬
Shareholders of the
more
77%
are
than
3,500,
residents
Nitrogen
the divi¬
per year,
total
Alkalies
new
now
of
Chemicals, Resins and Plasticizers,
Coal-tar
Products,
Building and Road Mate¬
rials, Fertilizer Materials.
Food
Colors,
Acids, Alums,- Sodium
Dyestuffs,
Compounds,- .Insecticides,
Laboratory
and
Reagent
Intermediates, Synthetic
Detergents,
Chemicals.
cals,
Pharmaceuti¬
Coke
Coal,
and
Gas
paratus,
Ovens.
By-Products,
Producing Ap¬
Wilputte
Coke
Alkalies, Chlorine, Calcium
Chloride.
ucts,
Nitrogen Prod¬
Methanol,
Formal¬
dehyde.
'I
•
20
The Commercial and Financial Chronicle
(1092)
the
burden is cancelled
benefits received. Then,
too, to the extent that the interest
payments are used to create new
productive facilities, the burden
of
these
interest
payments
is
Canadian Securities
WILLIAM J. McKAY
By
Bank
Canadian
The
current review of
development,
its
in
merce,
Com¬
of
Canadian
economic
publishes
an
analysis
interesting
of the national debt of Canada,
it
which
the
despite
that,
notes
in
alarmed
at
that
Canada, and the
depends on
longer
no
foreign investors to absorb a por¬
of
its public
indebtedness.
tion
Moreover, there has developed in
States,
widely diverging attitudes toward
Canada,
and
indebtedness
national
nature
these
Tracing
the last 35 years,
developments, in
the Bank's pub¬
lication states:
fiscal
The nature
in Canada.
era
significance of the change is
indicated by the fact that during
World War II the country financed
and
a
at
an
accumulated
which
debt
gross
rate about
annual
average
total debt incurred
1914-20. There were
also outstanding differences in the
the
equal
to
in the
years
fiscal policies followed
during the
two war-time periods.
In World
War I the average interest rate
rose
40%, about a fifth of the
funded debt was payable outside
Canada, and five of the six issues
sold
tax '
the
end of 1919 were
to the
up
In
exempt.
World
debt?
interest rate declined
average
28%, the portion of the debt pay¬
able outside Canada dropped to
about 3%
and there were
domicile
tax-
no
The major shift in
exempt issues.
of the funded
debt
the
purchase by the Government
war
of Canada of
its
of
debt
Kingdom,
the
the
practically the whole
funded
United
of
years
chosen
means
United
in
the
being
account
to
provide
Kingdom Government
with the funds needed for its
and
likewise
1944
reduced
the
debt
payable in United States funds
or
gold, which had for the most part
been
contracted
standard
while
the
gold
still intact.
was
sidered
to
ground
the
foregoing
as
back¬
consider the wide¬
we may
ly diverging attitudes toward the
national
there
debt.
is
the
On
the
school
one
of
hand,
thought
which applies to the national debt
principles
identical
that should
govern
with
unproductive.
be
is
negative,
a
those
sound private
This,
in
and
respects unreal, conception
debt which was the price of
many
of
a
,
that
Moreover,
victory.
war-time
of the
part
which
borrowing
of
was
who
the
depression-bred
The
debt.
alternative to debt-financed relief
social
strife
it
and
can
the
and
debt
na¬
the
review of the
of
income,
Commerce re¬
Bank
national debt at the
"While the
fiscal
1950-51
the
of
income compared to 48%
out
which
keep
being
of
it
the social
unproductive.
are
in
system
In
view
such
considerations, therefore,
seems
illogical to make cate¬
in 1929-
of
is relatively stable.
because
the
riod
by
that
This is partly
rate of in¬
during this pe¬
bonds
in
existed
be
"It
the
"If
burden
the
of
debt
then
is
it
the term
the
increased
of
rate
and
the
on
the
interest
Moreover,' the
the national debt
of
outside
Canada
has
been
decreasing until quite recently.
is
it
"If
servicing
is
debt
maintained
of
merely
citizen
to
transfers
out
that
true
the
as
prices,
one
rect
with
disagree
always
not
be
of
its
among
holders
indeed. Other¬
It is
ex¬
nec¬
therefore, to take into
ac¬
interest
recipients
and
of the
pear
social
large
taxa¬
structure
If it should
economy.
that
the
and
welfare
ap¬
certain group holding
amounts
of
government
a
is
of
receiving
a
upon
other
Not
in
relation
in
and
progress
for
develop¬
immensely
more
by stating that "careful
man¬
agement of the national debt in
time
of
inflation
do
can
a
much
towards
maintaining
the
real
value of investments, which pol¬
icy in turn will tend to facilitate
increase
any
might
be
If the interest
in
the
required
taxes
pay
support a broad structure
social security
benefits, then
for
speculation
in
remaining
of
To
in Canadian
our
those
the
There
time
describing their spectacular
climb. This is known to
ing almost 20%
tional
be
soon
of
product.
the
absorb¬
gross
Barring
na¬
full-
a
scale war,
which obviously would
materially alter present calcula¬
tions, it is hard to see how this
will
remain
high
so
for very long. Once the productive
facilities are constructed and the
output of finished
goods ac¬
celerates, it is likely that the bur¬
den
of
defense
cline,
it
for
war
spending will de¬
is
doubtful
that
armed services will want to
excessive
stocks
the
accu¬
of
weap¬
to rust and become obsolete.
Marchand,
public
relations
officer
the age of 36. He
ing to his office from
of
was
the
return¬
Red
a
to
Cross
He
nearby hospital for
a
examination
and
died
in
the
an
of¬
doctor.
a
of
war
production,
civilian
been
to
the
increasing
mable
which
in
the
supply
goods
—
I
and
you
use
the
our
like food,
Such
of
consu-
merchandise
can
eat,
clothing
wear
"high powered"
it
is
so
effective
stimulating the demand for all
kinds of goods.
enter
to
spend
businessman
every
housewife.
the
At
and
every
time
present
commodity prices are higher than
they ever have been before by
substantial
a
the
not
this is
but
margin,
interesting point.
The chart of commodity prices is
a
series of broad low valleys and
high
only
sharp
Traditionally,
peaks.
peak has been reached it is
long sustained; yet commodity
once a
not
on their
consider¬
prices have been poised
able
pinnacle
duration
for
suggests
change
in
of
matter
basic
raw
a
time.
of
This
As
temperature.
Departments
are
Gold Mines
always
been
exhibiting softening tenden¬
cies.
This development carries the
implication
prices
in
Should
under
on
lower
way
of
future.
this nature get
it could
with
consumer
distant
not
trend
a
ulative,
of
the
become
remarkable
cum¬
effects
business.
The high level of
There
have
also
been
natural
phenomena affecting business
which were not originally accu¬
rately appraised.
The
great population
war
caused
shifts which
ac¬
activity in the capital goods in¬
dustry generally has been an ad¬
centuated the postwar demand for
Mere
factor
contributing
to
housing and community services.
mention
the
of
spectacular
We
Ross, Knowles
business volume and adding firm¬
ness
to the
Hudson's Bay Company
available.
have
prepared
studies
on
&
Co.
glad to send you
the
a
copy
on
request.
Wall Street
Inquiries
Members:
The Toronto Stock
Exchange
The Investment Dealers*
Association of Canada
330 Bay St.,
Hamilton
Sudbury
Toronto, Canada
Brantford
Windsor
Brampton
development that has occurred
Kippen & Company, Inc.
1922
607 St. James St., W., Montreal, P. Q.
Telephone UNiversity 6-2463
of
the
Investment
Association
of
Canada
Dealers'
This
have reached its
max¬
West
the
extent
the
intensity.
which
to
even
Members
may
imum
programs
Invited
Established
the
price structure.
above Canadian stocks, and shall be
(formerly Milner, Ross & Co.)
a
fact, for several weeks
commodity prices have
trend
ing
in
prospective
a
auto-
or
spending has been
as
too,
need
no
ditional
Hollinger Consolidated
securities, the facili¬
Research and Trad¬
the
as
adding purchasing power
spending stream without
aptly described
money because
Calgary & Edmonton Corp.
well
productive facilities have
all
or
Anglo Canadian Oil
as
prices,
is
upward
itself
actual output of
weapons, and
tremendous
expansion
of
moblies.
interested
Increasing Production
The construction of factories for
widely-known
Commodity
present
Facilities
Jean Marchand
Jean
or
of
ion.
Effects
few
areas
the picture in an important fash¬
preparations will
ons
op¬
investment
one
favourable
world.
ties of
sound
many
must prepare—and re¬
main prepared—to meet it. These
we
mulate
IN CANADA!
offers
Hot and Uncertain!
exists,
which
an
at
to
Temperature-
gency."
.
re¬
6
page
The Business
emer¬
debt
in
Canadian Pacific Railway at Que¬
bec. City, died suddenly March 6
used
are
jrom
percentage
The review concludes its analy¬
interest
to all other groups.
and
1945
before
large
very
Continued
un¬
complicated."
sis
the
support
substantial
a
only
opportunities
our
to
of
giving effect to these recommendations.
capital
income, but its influ¬
ment has become
pleasure
liberty also of hoping the "appro¬
not be slow or negligent in
overcome eco¬
ever
amount
material
the
the ability of the
than
national
a
recommendation
credit,
and
rates
on
larger
take
into the
money,
emergencies.
absolute
to
this
for
count the investment habits of net
tion
planning of
reach
fluctuations and
foreseen
accordingly,
The considera¬
country to face and
to
of other groups.
essary,
and
taxation,
bearing
ence
should
position increased at the
the
to
have
limited number
a
interest
is,
We
formation, and have the most di¬
wise certain groups will have their
pense
of
fice of
Boston 9, Mass.
occasion
We
priate committees" will
con¬
management
went
Fifty Congress Street
had
Joseph
duction in government
expenditures.
issues,
be
can
tions that arise in the
be
be very even
must
from
it
It
as
examination
the
to
that
simple factors.
distribution
pointed
debt
bond
been
NEW HORIZONS
1-1045
often
O'Mahoney.
Committee's
payment of interest, nor
measurement of
of
of
rate
has the debt of Canada since
another,
portunities
NY
have
committees."—Senator
Report.
na¬
such things
internally-held
strictly
the
fined
nomic
the
fore¬
since payments
an
burden
no
that
and
subject
a
fields
proportion
held
the
also
Canada
4-2400
O'Mahoney
The
found
ourselves in full agreement with the work or the
findings of his Joint Committee on the Economic
negotiation of refunding issues
it
debt
decreased.
—
WORTH
Sen. J. C.
specific cuts
appropriate
We
routine matter
a
concerned only with
though the national in¬
has
come
debt,
size
actual
that the burden has
say
increased
is
debt
the
national
possible to
the
of
be
to
the
from
seen
tional debt is not
is
considered
be
can
going that management of the
of
New York 5, N. Y.
the
Senator
in 1939 diminished
meeting when he became ill.
Two
in
around
O'Mahoney.
sup¬
years.
and
Provincial
INCORPORATED
discussion
recommended.
C.
in respect
which
A. E. Ames & Co.
be
of
considerably in the following nine
ductive' and 'unproductive' debt.
payments
CANADIAN STOCKS
the
details of the cuts must be left to the consideration
so
interest
might
which
have
to
recom¬
majority seemed to be inclined to believe that the
held
1939,
of
burden
net
payments
in
than
1950
the
posed
should
half. It is likely
in the low and
brackets
of
the extent to which
people
income
be
the Committee revolved
average
nearly
more
medium
general increase in
should
"Much
percentage of national income
terest has declined
rates
mended.
30, the service charge on the debt
gorical distinctions between 'pro¬
service of the debt is burdensome
Corporation
tax
national
payments, this
does not necessarily mean that the
Municipal
ment that no
year
the
105%
about
as a
expenditures
budget,
military, to ac¬
complish this purpose.
While
the
closing of tax loopholes was
discussed by members of the
Committee, there was agree¬
marks:
was
sufficient
a
'
that pay¬
borrowed
capital
of
ments
bonds
Government
ernment
the interaction
on
national
tional
Canadian
close
that
approximately $10
both civilian and
the
of
and
—
billion—should be made in gov¬
■
Commenting
maintained
be
hardly
share
CANADIAN BONDS
balanced
original interest payment pos¬
sible."
of the
the Economic
on
reduction
the ones
paid the taxes which made
to these groups
be
a
be
not
may
with
on
may
as
expenditure of the interest
payments
improving or creating
domestic capital equipment should
not be classed as unproductive. So
spent
economy
majority
Committee [Joint Com¬
Report] has indicated ap¬
proval of the principles outlined in the proposed
report, namely, that the cash budget should be
mittee
whole, although the members of
community employed because
that
cash
"With
be
can
unproductive, however.
War-incurred debt is usually con¬
as
are
Re¬
financing operations in
1946
character
second
classed
war¬
time expenditures in Canada.
general
two
Not all of the debt of
purposes.
one
held
this
of
and that incurred on
of expenditures for other
average
the
is
noted
been
equipment
dur¬
resulted from
ing
has
It
debt
the
that
the
for
"The
the
largely as an
social instrument.
types—that incurred for the con¬
struction
of
productive
capital
II
War
regards
Thursday, March 13, 1952
.
Well, Let's Get at It!
t
debt
and
however,
financing of World War I
the beginning of a new
"The
marked
which
"What is the 'burden' of the na¬
tional
this
"burden."
its
of
the United
in
as
the
At
pendulum
the
school
national
debt, the bulk of it represents is¬
is
income.
swing of
economic
payable in
any
seems
another
is
therefore
increase in the
disproportionate
national
the
to
opposite
the
Dominion
which
and
tremendous increase in the funded
sues
cancelled
finance,
debt
the
.
supposed
by
.
The
these
capital
have
after
very
been
giving
goods
carried—
recognition
to
Mountain
dynamics
shift.
increase
births
which
the
and steadily
housing,
have
provided—suggests that the
thermometer
has
cord
temperatures. Some
summer
cooline off
cal
seems
prospect.
registered
certainly
a
re¬
logi¬
illustrates
this
population
Consider, also, the unantici¬
the intensifying effect which high
taxation, accelerated amortization
mpunting labor rates
States
of
pated
in
marriages
have
stimulated
the
furniture
tional facilities.
In
and
confounded
population experts.
has
on
Coast, in Texas and in
This, too,
demand
and
for
educa¬
1946, the
mar¬
riage rate, according to Roger W.
Babson, reached the all-time high
of more than 120 marriages for
each
1,000
unmarried
females
Volume 175
Number 5098
15—more
over
than
.
.
The Commercial and Financial Chronicle
.
double
21
(1093)
the
56
marriages, per 1,000 in 1932.
Throughout the '40s the marriage
rate
was
relatively high.
The
large baby crops of the '20s have
been
now
rate
of
married
off.
the
future!
of
crops
The
the
smaller
depressed
baby
'30s
are
now
reaching marriageable age.
result, Mr. Babson expects
marriages during the next live
As
a
to
years
recent
be
20%
lower
than
loss
average—a
of
the
about
350,000
marriages a year.
implications of this dismal
pect
The
pros¬
substantial for the build¬
are
ing industry, for house furnish¬
ings, for many other
lines
of
Hindsight,
therefore,
many
tivity
has
suggests
business ac¬
why
reasons
been
sustained
unusually high -level
following
years
for
the
at
an
the
six
The
war.
present year will be the seventh.
It is safe to say that the
shortages
consumer
moblies,
by
been
capacity
also
been
conditions
The produc¬
the
nation
has
thoroughly re¬
the capital goods
by
of
recent
has
and
years,
expanded to accommodate
much
greater
tion.
The
these
be
soap)
rather
habilitated
been
of
auto-
as
and
war-time
satisfied.
tive
output
(such
refrigerators
created
have
goods
amount
of
sustaining
business
a
produc¬
effect
of
appears
factors
to
moderating.
What
will
business
By JOHN DUTTON
Delaware Power & Light
scale
the volume
after
up
1952?
plant
that
the
virtual
we
know
it
today.
activity,
stances
growth
two
utilities
and
certain
other
but
the
to
extent
value
of
ments
the
electric
were
company's Northern Division, which includes Wil¬
purchased from Philadelphia Electric.Residential
revenues
national
3.6 cents
average
kwh., which is above the
per
average.
The company recently issued $5 million 4.56% preferred stock
which was offered at $103.64
by a syndicate headed
and
First
is
Boston
Corp.
approximately
Including the
follows:
as
We
of the dollar.
continue
can
by
to
lavish
waste
our
Government
spending
and
we:
can
hardly
expect the present Administration
to
reverse
so
in
establishing. We
rant and rave, but the aver¬
may
citizen—the
age
like
to
seems
he
it has been
course
a
instrumental
Preferred
IS
inflation
until
and
inflation for the
that it is, we can hardly
expect him to register
a vigorous
ballot box. But
protests at the polls the
Government is unlikely to alter
its course, regardless of the party
in power, and the country will get
objection
until
the
at
he
the kind of Government the aver¬
citizen
age
wants—the
The
have
have stayed
it
is
there for
It is hard to
period.
July, August
but, at least, it is
be
could
Were
September;
longer spring.
venturing
economic
fall
far
along
into
would
in
my
the
take
With Davis,
to
SAN
The
FRANCISCO,
Co.,
of
staff
Sutter
Ill
the
of
San
—
pool, and the pool
the
excess
Street,
electric rate increase of
an
Stock
The
Financial
Ex¬
Labor relations
customer
The
will
the
First
647 South
estimated
are
also
Chronicle)
California
Spring Street.
Co.
unions
of 14 cents
a
accounting.
increase
No
in
the
sufficiently
ac-
in the firm's
campaign
a
mar-
could
in
resnect
business
new
an
to
that
anything that
a
"Oh yes, Mr.
Of
some
course,
Smith, I've been noof your advertising,
you flatter me a
bit
when you suggest that you would
like to discuss securities with me,
but
even
you
any
like
to
though
can't
I
if
business,
come
to
that
is
lot
promise
you
see
me
pleased to have you call."
would
I'd
be
Surely,
encouraging to
any salesman
than to have the
fellow on the other end of the
revenues
line,
say
share in earnings
dividend
($1.20)
likely this
seems
around $1.60
increases,
to
a
Share
earnings
talk
somethnig
out
Who did
What?
were—what do
you
compared with $1.68 in 1951,
is estimated at
yield 5%.
$2
over
Power
&
far
Good
The EPT earnings base
has
and
Nelson,
Investment Counsellor
Francis I. du
of the
Pont and
New
has
Co.
York
become
mem¬
Stock
Ex¬
Licensed
a
firm under
ship,. in
work.
order
Her
a
to
office
sole proprietor¬
carry
is
at
on
her
Mrs.
Cam¬
603
and
Masterson
successful
has
career
had
in
a
the
long
se¬
.
they
when
there
been
Douglass
that
a
well-planned,
program
outdoor
Baker
joined
Co.
a
Pierce,
belives
as a
she
the
broker's
will
be
rep¬
able
to
giving full and due
consideration
to
/
their- individual
!
.
,
„
„
be
to
an
^
opportu-
a program
in their own indi-
do
a
much more effective
and profitable job of advertising
their
business
that
than
which
seems to be the usual procedure
at the present time. A friend of
mine, who is a very successful
advertising executive, and who
has studied the advertising of investment firms for years has said
"I have never
me:
seen
any-
any
other
business. You fellows in the secuone idea today
and you think it is the greatest
rities business get
thing in the world.
But tomorrow
don't know why this is
I
go.
op-
coordinated
newspapers,
and possibly
as radio and
billboards, would of itself
better equipped sales¬
so.
Possibly it is the very nature of
y°Ur buusiness ^at Tcauses y°u t(J
be s0 changeable. If any one of
y0u
a toe hold on one good,
sound merchandising idea, and
you kept at it until you made it
in P,^er
+if3
business, I think you d have the
answer as to what ails your advertising and your promotional
work.
J* appears to me
a
°* sense in
that there
remark.
'
WaSniAfricrhf
,
RamCOU ftfl
fW«inmlgllIf lldfll&ey ill
AUAHl/vAmnHi
ASSISt Ifl0lltgGH16t^
Mayor
gomery,
city
has
firm
of
W.
A.
Gayle of
Mont-
Ala., announced that the
engaged the New York
Wainwright, Ramsey &
Lancaster, consultants on municipal finance, to assist the city in
developing a sound financing proprovide sewage treatment
required by the State,
gram to
bringing upestimates
It is anticipated that revenue bonds will
be so\^ iater this year. In addiEngineers
to-date
are now
project
cost
made several years ago.
tion, the consulting firm will assjst the city with any other financing which may be undertaken
in
the
next
few
years.
attract the
men,
both
from outside, and
in¬
Madison & Burke Formed
(Special to The Financial Chronicle)
that, by
higher standard of service
.
an
side, the investment business.
to her clients
needs.
in
The Mass Market
Investment Counsel¬
an
resentative,
give
Lynch,
Beane.
Masterson
as
Walston,
later
now
Goodwin, and
Merrill,
Fenner &
Mrs.
&
and
is
of consistent advertising
R.
Hoffman
overcome
constantly
phase of sales
are
such other mediums
lor, rather than
own
.
Co. which firm was purchased
by First California Company. H.
acting
California, and has formed her
.
portunity for increased public acceptance of a product, the best
salesmen will eventually gravitate
to such a market. It is my opinion
The price-earnings ratio is 14.3 times.
with
will
salesmen
But
work.
business,
seems
vidual communities. At least, they
you
And it hapin the retail
often
too
doing this in eveiy
Light stocks is currently selling around 24
associated
There
you want
about; what kind of busi-
obstacles
share.
a
area,
nity for some progressive retail
organizations to step into this
field> and make a huge success of
like
is your firm in?"
pens
rate
estimated at
are
a
more
stutter
ness
in 1952, plus any additional amount obtained in rate
as
Delaware
year.
a
y°u are already cold about it. Then
you get another one and off you
acquired.
securities business.
bridge Avenue.
Inc.,
be
of
this: "Who?
common
a
prospect, it is something like this:
result from accelerated depreciation of defense plant
into surplus account, it is understood, which means con¬
servative
such
salesman likes to hear when he
picks
up
the telephone to contact a
will
go
from
position
If there is
reported good.
potential gain
toward
name
was
volume
could
said to be excellent,
are
directed
returns
such
area,
ticing
of
Calif. —Jack
with the two
relations
a
Prestige Attracts Good Salesmen
(about $1 million
upon
to
down, though
annum).
per
be
their
enviable
event.
Investment Counsellor in the State
Tinger has been added to the staff
of
6-7%
some
impact
thing exactly like it in
the
from
&
First California Adds
to
obtained
up
eventually place that firm in
Philadelphia Electric and con¬
tains some natural gas, is now sold with 800 btu. as compared with
520 formerly.
The company's own gas plant has been improved
to take better care of peak demands, etc.
There is a good de¬
mand for gas for housing heating. The
company is trying to get
its own supply of natural gas—an FPC hearing on the question is
scheduled for April; if this is not received, the company will have
to ask for higher rates.
The company may also decide to ask fQr
change,
ANGELES,
as
operating
build
campaign would quite likely not
be
very
impressive.
But eventually, if the prestige value of the
ket
being sold profitably.
which is
Gas,
bers
(Special
power
plus
two out-
the radio, should
on
clients located
are very efficient, operating at less
than
The company forms part of a large power
a whole now has a reserve of about 35%,
FRESNO, Calif. — Sydonia B.
members Masterson, formerly Manager for
Skaggs
change.
LOS
units
kwh.
per
would
advertising
&
Calif.
Davis,
Francisco
Moor
Sydonia B, Masterson
Chronicle)
slows
any
curities
Skaggs
Financial
Richard S. Miller has been added
the
Edge
10,000 btu.
to
(Special
to
The
knap¬
sack.
if growth
or
ceptable to the potential investor
in
kw.
Moor plant will be completed in
hand.
at
near
I
woods,
clothing
whether
297,000
company's plants are reported to be in fine shape, 60%
having been built in the last six years and 40% in the last three.
prolonged
a
say
■
bridges, etc.
for
nouncement"
could
The
which
and
peaks
or
no
Autumn
I
the Edge
business
of
all-time
new
demand
a
industry,
of one
standing locations for outdoor advertising, and a good "spot an-
such
immediate
however, to permit readjustment
and
thermometers
reached
100%
The company's engi¬
195G as compared
with 185,000 at the end
of 1951, or an anticipated five-year
gain of 60%. Growth continues uniform throughout the system,
and there will be 15,000 kw. new industrial output in the area this
summer.
Steel expansion is an important factor.
The estimated
$40 million expansion program for 1952-54 will remain flexible,
he
kind
richly deserves.
important
use
a
the best
known, and most readily recognized in
their community.
The
85%
estimated
firms
could
areas
you
possible then,
seem
investment
local
making
enjoyed good growth, with electric revenues
in the postwar period.
Further expansion
should result from the expanding industrial activity in the area,
neers
does
31
•Excluding intangibles.
construction of
American
continuous
that
The company has
some
and
profitable return
from
a
planned program of advertising,
20
30*
equity.
.
One good slogan, repeated over
and
over
again, one effective
phrase tying in personal savings
this conclu-
correctness of
It
that
sells
very
$96
increasing
the
in
49%
stock
Common stock
who
•
$47
says
market
salesman
Percent
Long-term debt
of that age-old formula, which
. . reach the emotions!
use
same success-
sion.
capitali¬
Millions
voter—
average
recognizes
scourge
issue,
new
it
ful
to
by Blyth &
Co.
the
outcircumstances
special
made
whether or not you were selling
"Manhattan" shirt, a "Chrysler" securities or any other product,
automobile, a "Remington" type- Of course, I am assuming that the
writer,
or
any
other
accepted advertising ideas themselves were
product, has the edge on the fel- sound.
No long-term campaign
low who tries to compete with a such as this should be considered,
less well-known brand, no matter unless the best advertising abili—
how
good a
value it may be. ties available assisted in the prepThere can be little argument as aration of the campaign,
the greatest advantages from the viewpoint of overall
and capacity requirements.
Prior to the completion of the
Edge Moor plant last July, substantially all of the electric require¬
mington,
in-
probably
are
of
has
these
But,
have
eventually make the
The
to
as
costs
that
We are also providing additional
discouragement
to
the
driving
force of private initiative, which
has been the principal
bulwark
of the country's greatness.
heritage
so
established.
of
confi-
of
name"
They
easy
direction of advertising programs,
produce
as
financing, we
are living in a fool's paradise; we
are
mortgaging our future and
bringing about a further depre¬
ciation in the
systems
"firm
made
period
a
degree
a
the
in
have
over
They have used constant
repetition.
rather than because of the planned
Company has an interchange agreement with Philadel¬
Electric, the effect of which is to coordinate generating
the
years,
been
The
of
firms
headlines
the
delphia Electric Company and Atlantic City Electric Company.
facilities
their
of
services,
through
of continuous advertising,
certain
cases,
where
large
sion lines of the company are interconnected with those of Phila¬
phia
acceptance
and
use
underwriting
by
Continued
continue deficit
we
wide
a
the
many
dence
spending can help
high level of business
a
ing
toward build-
progress
offerings
Edge
new
the merchandisers of
as
to buy. They have broken
down buyer resistance through the
Wilmington and the Vienna
Maryand.
approximates 252,000 kw. (mostly modern)
compared with 1951 peak demand of 185,000 kw.
The transmis¬
at
Government
maintain
large
plant in
manner
other products have always done
it. They have simplified their ap-
made any
Net effective capacity
of
civilization
of
end
supplied
now
the
seems logical that an effort must be made
to reach these people in the same
peals.
In
are
rather than equities, it
industry, there have been only a
limited number of firms that have
operations.
Substantially all electric requirements
two principal
steam-generating plants,
ap-
a brand name, has
demonstrated
conclusively
in
practically every field of business
activity.
In the securities
Philadelphia Electric Company, although a standby plant is main¬
System revenues exceeded $23,000,000 in 1951. Approxi¬
mately 85% was derived from electric operations and 15% from
Moor
primarily by debt obligations
up
consistently
been
tained.
the
of
advertising of
the
gas
value
Advertising
plied repetition, through effective
and the surrounding industrial area, and
predominantly agricultural area extending south from
Wilmington to below Cape Charles, Va. The company supplies
gas in Wilmington
and adjacent areas; gas is purchased from
also
obviously do it,
eventuality would mean
but
The
approximately 110,000)
full
A
Prestige
Light and its subsidiaries supply elec¬
tricity to substantially the entire state of Delaware, and portions
of the states of Maryland and
Virginia, the total area being about
5,100 square miles with a population of about 462,000. The ter¬
ritory is widely diversified, including Wilmington (population
would
war
Company
Pow'er &
Delaware
zation
keep
Securities Salesman's Corner
By OWEN ELY
business.
of
Utility Securities
family formation has been
providing a background for the
extraordinary level of building
activity in recent years. But what
of
Public
This high
SAN
FRANCISCO, Calif.
—
Madison & Burke is engaging in a
almost untouched area of people,
securities business from offices at
who are now placing the bulk of
80 Post Street. Officers are John
their investment funds in savings
A. Sullivan, President; Thomas L.
and
loan
associations,
savings Dempsey, Vice-President;
Fred»banks, government bonds, and eric L. Winsor, Treasurer; and
i other mediums of savings backed Chester F. Robbin.
If
we
are ever
to tap that great,
\2
The Commercial and Financial Chronicle
(1094)
Thursday, March 13, 1952
..
Reynolds President
Bank and Insurance Stocks
Our
Reporter
Governments
on
Of Albert Frank Go.
J.
Frank
By JOHN T. CHIPPENDALE, JR.
JOHNSON
E.
II.
By
is casting a shadow upon the
The Ides of March
This Week—Insurance Stocks
casualty
major fire and
most of the
for
results
Although
all
on
companies
leased
together
those that have been re¬
not yet available,
are
with
provided
figures
information
about
kets
annual reports give a
in
tations.
operating figures
Underwriting profits
on
a
basis
statutory
substan¬
were
results
automobile coverages and workmen's
on
Even
profitable,
increased
losses
the
reduced
also
from
earnings
depending
this
upon
As
of
insurance,
pointed out by
derwriting results for
As the volume of
a
companies
many
reported
profits, where shown,
cases
under¬
nomi¬
were
number of companies, the statutory un¬
1951
in certain
cases
were
the
worst
business, in most instances, showed
gain, the equity of the stockholder in the
higher.
was
results
not
were
theless, losses
Thus,
on
an
ever
unfavorable
so
and profits
were numerous
unearned
premium
the
first glance.
earlier.
year
proved yields
on
increase in
An
able to show
some
was
anxious
are
to
keep
the money markets
likely to take place, if it
Never¬
Discussions
an
on
even
be helped by the authorities.
can
New Treasury
on
statutory
funds
plus
im¬
also
was
income
lower, primarily
were
underwriting
profits.
The
stances.
tion
and
final
To
result
be
sure
to
The
insurance
and
being
there
for 25 of these companies
The
figures
Adjust.
Operating
to
Under-
Net Ac-
Under-
Net
Profit
Fed.
writ-
quisition
writ¬
Invest-
Before
Income
Operating
Earnings
ing
Exp.
ing
ment
Taxes
After Taxes
Profit
Incurred
Profit
Taxes
Incomer Incurr.
Incurr.
1951
the
$
—1.91
7.63
5.72
0.10
5.62
3.27
—1.78
4.17
2.39
Cr0.12
2.51
-0.53
—5.55
3.47
—2.08
2.08
Treasury
obligations
of chase, with very little
Volume is as light as ever and
a
2.11
—0.41
4.27
3.86
3.86
4.82
Insur.
0.03
0.47
0.55
1.75
2.30
0.32
1.98
1.69
Continental Cas. Co.
1.64
0.82
2.46
4.74
7.20
2.15
5.05
6.05
-0.69
0.61
—0.08
4.71
4.63
1.40
3.23
merry
pricewise.
have
been
racing
up
game
indications that this relative inactivity is going to be
much in the immediate future. Because of the limited
up
few bonds
a
down.
or
either side of
on
These
the
scale
gyrations, however, have
maintained
5.30
on
1.66
-2.52
loan
5.33
-5.02
the
not
within the established trading areas.
There is
the horizon at the moment to indicate any change in
this type of market procedure. There
appears to be a balance be¬
tween buyers and sellers in the
longer end of the Governmnt mar¬
6.28
-5.05
and
no
push quotations
been
$
3.75
on
near
in
ladder
accomplished
are
nothing
1950
-5.66
eligibility,
future.
new
very
the up, commercial banks are
on
changed
action, it still takes only
shown below:
are
longer-term
down
of 35 fire and
1951.
as
continues to be
accomplished fact in the
the inflation pressure is
be
stocks, have recently published the
preliminary operating results
casualty insurance companies for
an
likely
very greatly concerned with the newly eligible tap bonds.
This seems to put a questionable value on
eligibility for the time
being at least.'
as
'/o;
and
small amount of considera¬
a
to ideas that have been concerned only with
long
as
that not
of dealing with the question of
become
was
operating earnings, while lower did not decline
Geyer & Co., 63 Wall Street, specialists in bank
means
which will
result of
a
Also it is reported
has been given
ways
as
to
as
what they might consider feasible under various kinds of circum¬
might have been indicated by the underwriting experi¬
as
investment bankers and savings bankers being sought
ers,
a
that most companies were
was
ence.
C'as. & Surety
(Fire)
Insur.,
Automobile
Insurance..
Camden
Fire
Continental'- insur._
Fidelity
&
Deposit-
5,60
1.21
6.81
4.10
10.91
3.01
7.90
0.73
—0.50
5.05
4.55
1.38
3.17
Phila.
Amer.
Hanover
Ins,
Fire
Co.
-5.20
3.84
—1.36
5.72
4.36
4.36
0.70
—0.42
2.95
2.53
0.36
2.17
of
0.24
0.87
1.11
2,86
3.97
1.10
2.87
Maryiand
0.85
1.36
4.52
5.88
1.01
4.87
3.95
6.75
9.26
1.72
River
Am;
On the other hand, when sellers
appear in the market, such as
savings banks and insurance companies, it is the down day. Be¬
cause there are no dealers
positions from which to supply the de¬
mand and no heroic buyers when
liquidators appear, it seems as
though the long Treasury market is going to continue to move
Ins.*—
5.96
0.44
6.40
4.30
10.70
-1.52
0.89
—0.63
2.35
1.72
3.28
in
-1.14
Co._
Ins";
2.62
1.43
5.38
6.36
0.84
6.02
5.63
new
1.36
0.24
1.60
2.02
3.62
1.13
2.49
2.63
0.02
3.88
4.91
5.83
6.56
Cr0.04
2.40
0.02
_
Insurance
-1.18
0.87
—0.31
4.21
3.90
Insurance-
Phoenix
bonds, then it is the up days. This could also be state
pension fund day, since these funds are in the long market
quite
frequently and have a marked effect upon prices on the upside.
4.99
Cas.
Northern
-2.22
2.23
0.01
5.82
5.83
0.37
—0.19
2.55
2.36
0.12
0.32
0.44
1.47
1.91
1.91
1.44
1.14
3.43
4.57
0.52
4.05
5.18
St. Paul F.
&
-0.56
Mv-
Springfield F.
&
M.
U.S.
Fidelity & Gty,
U.S.
Fire
-3.76
1.95
—1.31
3.90
2.09
Cr0.03
2.12
0.35
2.57
2.67
5.24
1.79
3.45
0.20
1.45
1.65
3.10
0.96
2.14
or
less
regular
up
into
the
picture
to
more
comes
and down
change
cycle until something
that
Edward
J.
Keresey
has joined the firm in the institu¬
tional
Co.
sales
department.
has
previously
with
F.
S.
Estabrook
and
business in
ment
Mr.
been
Co.
passing amount of attention
a
gress to approve a
higher one. On the other hand, more favorable
redemption values and maturity schedules would be used to add
glamour to the old girl.
2.20
Savings bank deposits, it is reported, continue to show sizable
This means little, if
any liquidation of Governments
by these institutions. *
increases.
To
NATIONAL
Bulletin
on
Acquire NYSE
York
On
Request
Stock
March
20th
the
New
York
Exchange will consider the
R.
Laird, Bissell & Meeds
New
Members
New
York
York
Stock
Exchange
Curb
Exchange
BROADWAY, NEW
Telephone:
Bell
YORK 5, N. Y.
BArclay 7-8500
Teletype—NY
1-1248-49
Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
(Special
to TUe
PRESQUE ISLE, Maine
thaniel
Barker
is
—
R.
Lowen'fels,
Richard
&
Co.,
K.
was
a part¬
Kaufmann,
reappointed
President of the New York
Na¬
engaging in
in
.Alsberg
Chronicle) "
a
securities business from offices at
231 Main Street.
In the past he
was
with F. L. Putnam &
Co.,
Inc.
was
dent.
Bertram
Financial
Hartung of Harris,
Co.
Appoints Officers
Masri.
Nathaniel Barker Opens
F.
Curb Clearing Gorp,
ner
Members
Offering of 1,760,000 shares
par
value common stock
15d
Schering
Corporation
March
on
11
by
of
of
made
was
underwriting
an
group headed by Merrill Lynch,
Pierce, Fenner & Beane, Kidded,
Peabody & Co., and Drexel & Co.
The .stock was priced
at $17.50
per
share.
No
proceeds
these
the
A
company.
stock
of
by
total
shares
outstanding
the
be
sale
received
from
will
shares
of
of
440,000
common
purchased at competi¬
were
tive sale by the
underwriters from
the
Attorney General, who owned
all
of the
authorized, issued, and
oustanding shares of the
shares
These
1,760,000
basis
each
of
common
on
for
capitalization
of
new
share.
old
corporation will consist solely
the
of
changed
shares
shares
four
Outstanding
the
coipora-
were
stock
being of¬
currently
fered.
Corporation
Schering
is
en¬
gaged in the purchase, processing,
manufacture, distribution and sale
of
pharmaceutical,
proprietary
and cosmetic products and prepa¬
rations.
The
major part of its
sales
on
the
For
products—
profession and
primarily for
prescription of
the
tion's
last
sales
nantly in
products,
more
and
such
"ethical"
of
are
is, those advertised solely to
decade
have
the
x-ray
a
by or
physician.
the
been
manu¬
use
corpora¬
predomi¬
field of hormone
diagnostics, and,
recently,
antihistaminics
chemotherapeutic
agents,
as
sulfonamides.
cently introduced
products including
It
has
re¬
other ethical
a nonbarbitu-
hypnotic and an anticholin¬
ergic agent. The corporation also
transfer of the Exchange member¬
ship of the late George J. Eising to
Saleh
City.
rate
Membership
BANK & TRUST CO.
OF CHICAGO
the
invest¬
own
New
&
In
Sobering Common Stk.
Offered at $171/2 a Sh,
factured
being given by many money market followers to the belief that
Savings Bonds will be given a new look soon. The rate, it is be¬
lieved, will be held at 3% because there is no desire to ask Con¬
Cr—Credit.
CONTINENTAL
as¬
Moseley
&
past he conducted his
that
it.
Savings Bonds?
There appears to be more than
3.55
1.25
this
More Attractive
5.58
2.22
Insurance
Westchester Fire
A.
Corporation, 40
Street, New York City, an¬
the medical
2.53
-0.30
Providence- Wash
<L.
Higginson Corp.
Higginson
nounces
the
amount of
4.35
0.51
Insur.
National Fire
120
Wall
tion.
way.
The market action of the
higher income securities has been
almost systematic with the
regularity of the up days and the down
days. When buyers come into the market for a not too sizable
3.38
No.
Federal, it seems, is interested in keeping it that
Long Market at Stalemate
5.96
-1.12
Fire
Jersey Ins. Co. of NY
North
Lee
The office of
left vacant.
was
Keresey With
Lee
into
5.63
Insur.
Assoc. of
ket and
8.65
-1.23
Fidelity-Phenix
Great
of
given to several propositions, with the views of commercial bank¬
curve
that adjusted
Fire
E. J,
sociated
there appears to be nothing definite yet about what will take place
when it is likely to happen.
Consideration is reportedly being
better
since 1908.
company
Vice-Chairman
Keresey
Borrowings
Despite the talks, meetings, conferences and rumors about the
coming -Treasury financing, which is supposed to involve billions,
gain in income from investments.
Federal taxes on
lower
investment
high level of dividend payments
contributing factor. The net result
Boston
been
nolds has been identified with the
nature is
fixed income obligations helped income from this
A continued
source.
Amer.
had
President
or
a
Aetna
he
Reynolds
prior
which time
to
Frank J.
the
of
man
bankers,
keel and in order to maintain this balance nothing of an upsetting
re¬
considerably below those
*
*
Concerning investment results, the showing of 1951
Aetna
served
Vice-Chair-
as
Albert Frank-Guenther Law, Inc.
from September, 1932.
Mr. Rey¬
authorities
underwriting
appear at
as
sizable
a
basis
adjusted
of 1950.
much
bankers, investment
approach to the important income tax date of March 15 is
some apprehension in the Government market.
Nonethe¬
less, it is not expected that more than minor and temporary tension
will be witnessed in the money markets. The modest firming in
short rates, which has been going on the last week or so, is evi¬
dence that the authorities are prepared for this operation.
Al¬
though there is a not unimportant amount of caution around, there
is nevertheless a firm feeling of confidence in the ability of the
powers that be to cope with a situation that will most likely be¬
come
less important with
the approach of future income tax
periods. It is becoming more evident each day that the monetary
experienced.
the
October,
1950,
creating
the concentration of premium volume among the
writing losses and'in most
than
commercial
between
according to reports.
individual exceptions to these general trends,
were
different classes
serve
since
The
While there
nal.
Reynolds
move
savings bankers and the powers that be, about future Treasury
financing has not brought forward any concrete developments yet,
source.
.
Calkins,
board,
Meetings
compensation in¬
though the general fire lines continued relatively
W.
Chairman. Mr.
15 approached.
to
by
Howard
direction.
tially below those of 1950 primarily because of the unsatisfactory
surance.
continue
obligations
longer-term
di¬
was
announced
within the
fairly well established trading range, up one day and down the
next with considerable regularity. Volume is light and it does not
take very many buy or sell orders to influence quotations in either
'
in line with previous expec¬
are
what would happen when March
The
good idea of the underwriting and investment experience last year.
The overall
board
^represents the amount of concern that is in the money mar¬
over
of
rectors, it
the
future, without more than passing notice. Short-term rates have
hardened slightly but this was not unexpected, and probably just
provide evidence that income tax periods will come and go in
detailed
reports providing
convention
annual
meeting of the
had been expected some time ago.
of this difficult operation by the monetary authorities appears to
insurance companies for 1951 have been issued.
the
at
im¬
- The capable handling
as
elected
was
ther Law, Inc.
Government
security market, but this reflection is not neacly as deep or as
portant
Operating
Reynolds
of Albert Frank-Guen-
President
Curb
Exchange Securities Clearing
Corporation, according to an an¬
nouncement
following the
corpo¬
ration's regular board meeting.
~
David U. Page was reappointed
to
the
Vice-Presidency.
Philip
Upham &
named second Vice-Presi¬
Thomas
H.
Hockstader
L. F. Rothschild & Co.
was
Secretary and Treasurer.
A.
Kugler of
&
Co.
Shearson,
appointed
was
of
named
Robert
Hammill
Assistant
Treasurer and C. E. Sheridan
was
reappointed Assistant
Charles
Vice
-governors
Mr.
were
Secretary.
Kershaw,
former
J.
Chairman
of
the
of
Lowenfels
the
board
Exchange
and
Mr.
of
markets
.
bulk
laxative
and
an
proprietary
products and a suntan lotion and
a depilatory as cosmetic products.
The corporation's ethical prod¬
ucts are sold for the most part to
wholesale
as
druggists,
prescription
pharmacies,
physicians'
supply
houses, chains and hospitals.
Its
proprietary and cosmetic products
are sold by wholly owned subsid¬
iaries
to
wholesale
druggists,
and
Kugler chain and independent dJ ug stores,
cor¬
department stores and other trade
elected directors of the
poration;
a
antihistamine
outlets.
Volume 175
Number 5098
Continued
from
.
.
The Commercial and Financial Chronicle
.
of
9
page
23*
(1095)
Erazil
which
alters
retroac¬
tively the basis for lemittance of
profits and dividends from Brazil
A Business View of
has,
to say
ous
concern
vestors
Foieign Economic Policy
the least, aroused seri¬
among American in¬
and
ally face
imports,
will
With
have
The United States Objective
The United
States
world
leadprshin
tionai
Honal
economic
economic
exercise
can
interna-
tnwarH
exOanslon
expansion
if
it
we
we
work now to avotd a depression.
rirst
put
and
foremost
wherever
and
head.
For
its
has
suffered
have
the
termination and
do
Stop it
so.
and
agant
if
can
end
reckless
sharing
from
to
think
Stop it
reduced
a
we
industry is
in
resulting
progress
and
productivity with
customers, our stockholders
our
increased
and
workers, and not be forced by
some powerfully organized groups
our
to
favor them to
exclusion
tne
libera
that thcir
is the acceptance
policies
salvation
competition and the ending
have
We
-
uati0n
with"
With
The
natjonal
restrictions.
national
quotas
of
Meanwhile,
imposed new and higher
the
goods they
to ship to this country,
against
would like
.is
corrected,
Tel
n0t Pr°Ceed
encourage
efforts
its
United
the
to
time
has
come
when
0ur
aid
United
convJnCe
gtates
government that all forms of
whether
government
private
grants
finance
must
he
or
ernments
respect
agreements.
£iace-J?1£e Yn ,tad
of
We
,
the world.
n°w occupies m
And now
Un^eri "state" P°int
the
contractual
We
third and final
my
1"
exPanding world
eeonomy we ?an Acount on export-
lng more goods. As American pri-
the world s number one.:cred- vate enterprise builds more faclt°r ,natlon and the v'orld s r"0Sl tones abroad, standards of living
ca" be expected to rise with a re'ured gooda' W® should; theie" sultant greater demand for Amerare
the
exercise
e>
greatest
le- ican goods.
straint in the raising of tariffs exWe .businessmen can assist in
cePt in critical situations after formulating and inspiring approfan^ fair examination of priate policies for the transition
a11 the lacts mvolvedperiod leading to peacetime conLet us not forget that imports ditions. We can help attain these
anti-inflationary de- objectives if we cooperate sensvices by increasing the amount of ibly with other segments of soci-
can serve as
goods available to the American ety. /To this end we must discard
consumer in those periods when our prejudices. We must not be
if we and
domestic
production of
such guided b,y considerations of politthe dictates of reason and fairness goods may be unable to keep pace ical
expediency. We must preand call a halt to this mdefensi- with consumer income.
•'
serve the integrity of economic
ble
and
dangerous
practice
of
All these are matters for which life at home and abroad. We must
yielding to high pressure demands, we must plan now. And that is uphold and strengthen the diginvestors
and
any possible price
short, stop it we can
our
government heed
reduction.
It is
size
In
hardly necessary to emphainflationary tendencies
that*
here in America have
ate adverse effect
grandchildren.
allies
to
obligation
our
children and
our
We
keep
the economic
on
situation abroad. So
is not confined to
immedi-
an
it to
owe
our
in
inflation
our
check.
Only then, because of the
interdependence of civilized peopie, can they check their own inBy
the
token,
same
must
we
realize that if Europe is to defend
itself
adequately, it
must
first
achieve
*ome
finan-
of
measure
cial stability otherwise Soviet ob-
wifl'
jectives
be furthered
disc^tent
dal
and
by
eco^^ic
so-
dis-
tress
Second,
checked
unless
the
is
inflation
second
point in
cannot
1.
equilibrium
of
bringing into
balances of pay-
e.,
payments, the maintenance of
ternai
solvency of countries.
Domestic
has
ex-
inflation
always
imports
in
resulted
and
in
increased
diminished
This situation
exports,
usually produces a
condition
known
payments
crisis.
as
balance-of-
a
those
But
and for the
ber.
than for the
realize
of
in
1952
the
direction
of
convertibility.
Courageous Canada has shown the way
and American policies must support this movement.
in
Fourth,
of
to
order
payments
place
the
of friendly
why
than
a
single glance at this tabulation to
it is,
with profit margins over 25%.
a far
to absorb any fur¬
to survive a downturn in traffic. It is also
margins of less than 10% and
seven
Obviously those roads with the higher profit margins have
better cushion than have the low margin group
ther increase in costs
or
interesting to note that there were 10 roads that last year had
wider profit margins than in 1941, and that they were predomi¬
nantly in the western part of the country.
PROFIT
MARGINS
Operating Income
Per cent of Gross Carried to Net
Federal Income
Before
1941
Taxes
1949
1948
49.8% 37.3%
Virginian
1950
1951
27.5%
40.8%
38.6%
44.0
33.4
20.8
31.4
31.4
30.5
2-3.9
29.3
25.8
31.5
30.2
31.4
27.3
33.0
30.1
37.4
32.5
30.7
29.9
15.8
12.2
29.6
27.6
17.4
22.6"
16.1
21.7
26.2
35.8
20.1
13.5
25.4
*{"24.4
Y., Chicago & St. Louis--- 32.1
27.3
22.4
28.6
23.7
25.0
16.5
13.3
21.5
20.8
20.5
Norfolk
Western
&
Western Maryland
St.
Louis Southwestern
Kansas
City Southern
24.1
Pacific
Western
19.1
—'
Rio Grande Western
Denver &
Chesapeake & Ohio
Pacific
19.8
to PiePaie lor the reconversion day is to make allowance for
il> esPecially in our foreign eco™ policy' and not l<\treat
conversion as a separate prob-
Atchison, Topeka & Santa Fe 22.9
20.7
18.1
27.0
18.9
lem"
St.
Chicago, Burlington & Quincy
Louisville
Air
Railway
other
are
steps
(Special
tapers off:
H.
14.8
15.8
12.9
19.3
17.6
25.8
17.6
9.7
17.6
17.0
&
19.9
15.2
13.0
20.8
17.0
27.2
15.6
13.8
19.4
16.6
14.9
17.6
9.4
20.0
16.4
25.3
15.5
11.1
15.9
16.3
11.4
16.4
15.0
18.6
15.7
Lehigh Valley
—19.1
New Orleans, Texas & Mexico 23.1
Adams
to The Financial Chronicle)
HARTFORD,
Conn.
—
Clarence
We can think in terras
0(
become affioriated
investing
more
private
capital xvith Putnam & Co
6 Central
abroad.
Private capital and in- Row members of the New York
dustrial know-how going abroad
stock Exchange
Mr
Adams in
will be vital measures in keeping the
past was SeCurities Commis-
H* AdamsTal'
economies
going,
11.4
8.1
13.7
15.6
21.7
19.1
18.5
15.6
16.4
14.1
19.5
15.5
21.9
15.2
fl5.2
Francisco
Louis-San
economic
own
well-
year's developments in the Middle
EaS
.
-A,
.
4.
,
.19.0
25.1
1-3.4
10.3
Wabash
19.8
19.0
11.4
18.0
Erie
20.9
16.4
8.6
17.4
15.1
Chicago & Eastern Illinois.-Southern Pacific
12.6
8.4
4.1
17.8
14.3
;
13.4
13.1
14.3
10.5
15.3
12.3
16.3
10.3
13.6
12.0
7.6
12.7
11.8
15.6
8.8
18.2
11.3
21.6
13.4
10.1
12.2
11.0
Chicago, Mil., St. Paul & Pac. 20.2
Boston & Maine
19.3
7.8
5.8
13.1
8.5
10.8
7.1
11.3
7.6
9.8
7.3
10.0
7.6
Pacific
&
Ohio
Minn., St. Paul & S. S. Marie 11.8
Central RR. of New Jersey.-. 11.7
7.0
10.9
7.0
9.3
5.4
7.6
6.6
N.
who has been
10.2
Pennsylvania
He succeeds
bank's
5.3
Baltimore
named Assistant General Manager
the
20.5
21.5
Missouri
department it
joRn h.. F. Turner
divisiong<f.
16.7
16.6
Atlantic Coast Line
;
has been announced.
of
10.8
16.0
17.5
Del., Lackawanna & Western 18.5
Appointed
By Bank of Montreal
charge
12.6
17.7
Chicago Great Western
Edw. Ernsl
in
19.8
Chicago, Rock Island & Pacific 18.2
meeting in Paris appealed to gov-, Montreal's foreign
ernments everywhere to stand
forcefully behind the sanctity or
contracts. This statement was issued in full realization of last
a—
Northern Pacific
sioner for the State of Connecticut.
countries,
Pacific
Illinois Central
(2)
importing
18.7
18.5
Missouri-Kansas-Texas
Clarence
ke ready to
promptly after rearmament
various
19.5
21.7
Reading
we
^ake n0Wj s0 as
move
12.3
14.1
Hudson
Delaware
Union
that
14.0
17.1
Gulf, Mobile & Ohio
Great Northern
There
the
15.6
27.7
Line
Seaboard
Post-Rearmament Steps
can
Nashville
&
Southern
8.8 '
6.4
10.4
5.0
4.9
6.9
5.4
5.6
0.6
6.5
5.1
6.5
3.9
17.3
i::13.9
20.0
Y., New Haven & Hartford 1-3.0
14.7
New York Central
western
Central
of
19.9
Georgia
Chicago & North Western
,
17.4
7.1
1.2
Class I
:
Mr.-* Ernst was formerly Assi¬
gnations on a healthy basis, we
,^Ye statfd tbat the foundation tant Superintendent of the bank's
must
accept
more
foreign-prointernatiOhal;'.Y'ade>lies in
foreign department in which caduced goods." This is in our inter- -SP
^ contractual agreement, pacity he traveled to many parts
est, for it will reduce the need Any tendency to cancel such^-con^-^tbe:,world, including Australia,
for
continuing foreign; j,aid ^"A tracts without, "faiL, compensation New Zealand, Honolulu and Fiji,
grants which we no longer can af- dnd without recourse to any .rea- From 1928 to 1943, he was atbalances
more
and presumably alway will be, impossible to
consider all railroads as a cohesive group or all railroad securities
as a single investment problem.
The industry as a whole last year
had a profit margin of something under 14%. The individual roads
ranged all the way from 38.6% for Virginian to 3.9% for Chicago
& North Western.
All-in-all there were nine roads with profit
#
currency
the 11 months through Novem¬
months.
11
It needs little
N.
,
course
The roads are listed in descending
For all Class I carriers
Presumably for the full year the margin was somewhat lower
Texas &
good
this
,
the "Profit Mar¬
profit margins for last year.
the profit margin last year is for
being these governments should
chances
now —and
I
say
.be inspired by principles of fair
guardedly in spite of the reap- treatment.
.
;
MONTREAL, Que., Can. — Edpearance
of monetary crises in
Last November the Interna- ward R. Ernst has been appointed
Europe—for decisive steps in the tionai
Chamber of Commerce Superintendent of the Bank of
very
as
we
1941.
prewar year
order of their
way
their
are*-
operating income
net
show the profit margins for 45
individual carriers and for all Class I roads for the past four years
In the tabulation below
25.2
Hqr
there
factors is measured by
expense
through to
This is known
before Federal income taxes.
23.1
capital
Third,
of these
carried
gross
13.9
the
world prices of raw materials.
on
of
11.4
impact of American inflation
the
cent
15.6
diffi-
caused
total of all
sum
per
22.5
the
been
It
18.7
by
have also
transportation
was pointed
It
the most important factor in operating costs.
was
The
the
Very much will depend on
attitudes of governments in
culties
the
however, the only determinant of earnings or the only cri¬
terion of efficiency. There are, also, the maintenance outlays and
traffic and general expenses. There are property taxes which in
many cases are fixed regardless of the level of traffic or earnings.
There are joint facility rents and charges for hire of equipment,
either or both of which may result in a net credit.
adopting these
(1)
Europe
showing
29.2
be
schieved
tabulation
a
is not,
pollKc.ies we will offer effective
cushloas in the main cnance o an
exPaijding economy The propei
this
program
proposed
that this
out
.
By
ran
we
ratios for 45 of the major railroads of the country.
not a^- As soon as rearmament nity of the individual. We must
requirements permit it, we must move forward in a free world of
aim at the. gradual reduction of high promise,
government interference with
activities rightfully falling into Clarence H. Adams
the realm of business.
Now With Putnam & Co.
Those are some ot the things
whlcb 1 believe we must do in
our domestic and foreign economic policies and we must begin
now in anticipation of the end of
rearmament.
*
flations
week
lim-
fted to those countries whose gov-
We must aPProa?h these Prob"
of
terms
costs
technological
as
we
government
if management in
can
permitted
tmde and
iree iraae ana uoerai
de-
to extrav-
spending and taxation.
Europeans for five
Frofit Margins of Carriers in 1951
Last
ing that unless and until this sit-
commerceWe have declared m American investments in Brazil,
by rem,ttmg tariffs
quotas.
only
0f
gov-
the
the patriotism to
an
an(j
we
Brazil.
of
hesitancy in stat-
no
gin."
in"
us
mind,
we
nation demand
enough
consequences,
Swho'represent
those
ugly
living
every
disastrous
ernment
its
rears
surely
Amencan
from
it
whenever
the
told
betterment
And I have
fervor
crusading
a
&*to
parriers to
our
must
we
—
stop to inflation
a
Fervor
„
reduction in exports.
a
Crusading
Our
automatic¬
we
invest¬
decree, unless rescinded,
undoubtedly
impede
the
economic
reduce
we
prospective
This
ors.
21.9
15.0
11.0
*EIevc.r
months
<
through
6.5
tApproximate.
November,
.
,
sonable court of appeals can only tached.to the bank's New York
ePaLlia cance ^ 0
trade aft©'-v-agency.
hardly consistent for T h e ge;
'
Two With Sheehan Wolf
'^United States to preach trade, ljb^-. ^responsible action by governeralization,' to foreign countries
ia meeting the^ basic con(Special to The Financial Chronicle)
ford.
It is
interest of
economic
year
year
out and then not
make it easier for them to'sell
in the American, market-so
as
such imports
long
do not endanger
•
v-V-i 'a.
hynig. standards of American
..
tho
..
,
in and
workers,
u
• ~
.'o
.
Realty Trust Go.
stability.
is
It
to
in the
also
international
Sale
Buys Half Stock of
.
x
,
cePts of contractual obligations is
MIAMI, Fla.—Joseph Fromkin
a \on™T which must be corFected betfween "f10/18
fi?d
w6^01!
mvftments are to be rightfully; .the staff of Sheehan & Wolf, Inc,
DALLAS,, Tex.—W. Ray Mont¬
gomery
the
of
a
half
interest
in
the
wholly-owned subsidiary was an¬
nounced March 1 by D. Gordon
Rupe,
Jr.,
President
of
Dallas*
& Son, and was effective
immediately. Headquarters of the
Rupe
has purchased one-half of
company
Realty
will
be
in
the
Kirby
by
Dallas
Building.
capital
stock
of
Trust Company from
the
Dallas Rupe
„
'Established in'1919
,
protected
and
the flow of such 114 Northeast Second
capitai is to continue abroad.
The decree of
President Vargas
members
Exchange.
of
the
Avenue,
Midwest
Stock
&
Son
of the 33-year
firm.
President
Rupe
old mortgage loan
pany
and has become
& Son, Realty Trust
is the oldest firm of its
in Texas.
Com¬
kind
at
(lose)
The Commercial and Financial Chronicle
...
Thursday, March 13,1952
Celanese
marking
gears
of
the year
amounted to $24,800,263, compared with
$40,361,166 in 1950 and $20,640,826 in 1949.
The
share of Common Stock, based on the
outstanding at each year-end and after
providing for Preferred Stock Dividends, were $3.56,
compared with $6.38 in 1950 and $3.19 per share in 1949.
earnings per
number of shares
A
quarterly dividend rate of 75^ per share on the Com¬
Stock was
paid throughout the year. This amounted
mon
to
$17,534,862
Stock
on
the 5,844,954 shares of
outstanding. The dividends
Stocks amounted
dividends
in
to
1951
on the
Preferred
$4,005,551. The total payments for
were
$21,540,413, compared with
$17,093,288 paid in 1950. This
ment
A
for the
was a
record disburse¬
Company.
^
of the Annual Report
copy
for 1951 will he sent
on
Common
request without
Please address
charge.
Dept. 143.
Taxes: Provision for Federal taxes
on
income and
profits tax for the year amounted to $27,250,000,
compared with provision for taxes in 1950 of $41,000,000
and $13,000,000 in 1949.
The year's operations: Over
have expanded our domestic
a period of
years we
plant capacity to meet the
growing requirements of the textile industry in the United
States. With the
completion of our acetate staple fiber
unit at our Celriver
plant, we believe we will have made
adequate provision for the requirements of the textile
industry for the foreseeable future.
As
a
result of the
struction
was
increasing demand for chemicals,
on a new
petro-chemical plant
started
near
Petrocel
Corporation, a subsidiary, was formed to carry
gas exploration and development work, with
geological and explorations office at Corpus Christi,
on
a
;
per share on the Com¬
Stock, and dividends of $3.00 per share paid on
the Common Stock, the total direct taxes
paid by the
mon
Company to Federal, State and Local Governments
equal to $5.47 per share of the Common Stock.
Financial position:
assets
were
At the end of the year net
amounted
to
$102,757,948 against
earlier. Cash with banks and on hand,
including Government securities, aggregated $58,683,399,
compared with $61,682,887 at the close of 1950.
$80,683,298
Pampa, Texas.
«
Compared with earnings of $3.56
current
con¬
ex¬
cess
a
year
oil and
Texas. This
designed to
of the basic
was
another
step in
our
long-range
program
augment, rather than
raw
materials used
replace, existing sources
by our Company.
Through our chemical operations in the United States
and
through our affiliates in Canada we are rapidly
approaching our goal, which is the assurance of basic
raw
materials for the manufacture of
ucts—acetate
yarn
our
During 1951 the Company took a series of steps to con¬
solidate and
simplify its capital structure. These financ¬
ings revised the Company's financial structure so that at
the end of the
year there were outstanding $101,188,000
of funded
debt; 1,000,000 shares of Preferred Stock,
Series A, 4V2%; 34,163 shares
Stock
of 7% Second Preferred
(after deducting 1,545 shares held in treasury);
and 5,844,954 shares of Common Stock.
principal prod¬
and staple fiber.
Sales, earnings and dividends: Sales for the
amounted to $202,651,014, compared with $232,-
year
483,942 in 1950 and $171,292,005 in 1949.
Earnings for
CHEMICALS
•
CHE
CELANESE
MICA
L
YARNS
AND
Volume 175
.
Number 5098
....
The Commercial and Financial Chronicle
i
•
.
Reports
of
1951
on
growth and progress
Celanese
Canadian
Corporation of America
companies: Columbia Cellulose Com¬
Limited, completed the first phase of its plant
construction at Prince
Rupert, British Columbia. Operadons of the
pulp plant were commenced in May. Pro¬
duction has been on an
increasing scale, with the dif¬
ficulties
usually encountered in the start-up of a new
plant gradually being overcome. At the outset the major
emphasis was placed on training employees in their duties.
pany,
Engineering work is proceeding
the second phase of
plant's capacity to
300 tons a
day. As the full volume of production is realized,
die output of this
plant should be a constructive factor
in
alleviating the continuing world-wide shortage of
construction
on
which will increase the
cellulose.
Mexican and South American affiliates: BotK
Celanese Mexicana, S.A. and Viscosa Mexicana,
of our affiliates in Mexico, increased their
S.A.,
two
produc¬
tion of acetate and viscose chemical
yarns and fibers
during the year. Production of viscose staple fiber com¬
menced at the
plant of Viscosa Mexicana, S.A. and
provided the Mexican textile industry with a supple¬
ment to the acetate
staple fiber produced by Celanese
Mexicana, S.A. Production of chemical yarn and fibers
will be further increased
during 1952 by both companies.
Celulosa Nacional, S.A., another affiliate, has
construction of its cellulose
completed
plant at Rio Bravo in the
State of
Tamaulipas and has now begun production.
The plant
produces high alpha cellulose from raw cotton
linters obtained from Mexican cotton.
onstruction of the
petro-chemical plant and chemical
"arn and fiber
plant at Edmonton, Alberta, by Canadian
hemical
Company, Limited, was well advanced by
he year end. The total
capital funds arranged for are
'20,000,000 in the form of Capital Stock and $43,000,000
n
the form of bonds.
he Edmonton
hemicals
some
plant will produce
a variety of
of which will be used at the
industrial
plant in the
staple fiber
anufacture of cellulose acetate, acetate
nd filament
yarns. In addition to such volume
onsumed in the
o
as
is
operations of the plant, it is planned
market chemicals and cellulose
acetate in
Canada and
oreign countries. The staple fiber and filament yarns
ill be sold
principally to the Canadian textile industry.
lans of the
hich
Celgar Development Company, Limited,
immediately following the end
for an integrated forest industry in the Arrow
were
announced
f the year,
akes district of British Columbia, constitute the third
hase of the Canadian
development program which was
The development, which is
xpected to provide employment for 2,000 persons in
e
mill and
logging operations, is estimated to cost
65,000,000, but this amount may be increased by the
ddition of plywood and board mills.
itiated four
years
ago.
ORPO RATION
l«»
MADISON
■
Another
affiliate, Claracel, S.A.,
to start
•
In South America,
ment
near
yarn
the construction of the
fila¬
plant of Celanese Colombiana, S. A., at Yumbo,
was completed in record time despite
difficulties of construction due
to
the distances involved
in
shipment of equipment. The plant was constructed
less than twelve months. Steps
already have been taken to increase substantially the
initial capacity of the
plant and to provide for production
of staple fiber.
and put in operation in
During the year Celanese Venezolana,
and financed jointly by our
S.A.,
was
formed
Company and Venezuelan
investors, many of whom are leaders in the textile in¬
dustry of that country. Construction on the plant near
Valencia
was
rapidly. Plans
started
late in 1951 and is
proceeding
also under way for the production of
yarn and staple fiber.
are
viscose filament
•..
From the Fresident's
1951 Annual
NEW
•
acetate
Cali, Colombia,
Report, in the
Report to Stockholders
AMERICA
YORK
10,
■
TEXTILES
for packaging
installed in a
shortly.
.
IBERS
formed during the
City, with production
scheduled
OF
AVENUE,
was
year for the manufacture of acetate film
and wrapping purposes.
Equipment was
modernized building in Mexico
PLASTICS
N.
Y.
•
•
CELLULOSE
'
26
1,1
Continued
from first
regard to whether the President himself is the
page
As
We
trial
been
to
be
a
reasonable
return
for
the
This
,
election year—and
all those
harboring a desire to remain in office
had for a long time a morbid dread of "inflation," by
which they usually meant simply a damaging rise in the
cost of living. They still have much to explain
away in
this connection, but if one is to judge from a good deal
of discussion and hints of various sorts going the rounds,
there is now a growing disposition to wonder whether "deflation," by which is, apparently, meant a train of events
which leads quickly to extended unemployment,
may not
be a more potent factor in the election results this autumn
than the cost of living. And this after two
years of time
to get rearmament
fully under way and before the pro¬
gram reaches its peak —to say nothing of any "post
now
•
is, of
course,
an
in office and
defense" situation.
during the past two
consistent failure.
a
one
political
the
or
views
If
is
cost
not
is
built.
slab
a
Nothing
foundation
installed, in¬
drained.
But such
properly
and
be
can
a
headache if
properly installed.
The chief
objection lies in the lack of stor¬
age
for
space
such
items
as
storm sash, porch or gar¬
furniture, garden equipment,
screens,
den
other
and
paraphernalia
inci¬
Where is a
dental to family life.
going to have
man
children?
and
ment
on
little shop, or
the wife
from
favor
So
base¬
a
building loans. It is
impossible job to put
your
almost
an
a
relief
temporary
in
one
Continued
is
construction
matter who is
opportunity presents itself the failures of
past year or two will inevitably be i an unrequited
to the people of this country.
the
it
if
base
base¬
a
factor of obsoles¬
a
it
with
wrong
sulated,
such
no
when
cence
has been
three decades—and it has
no
system
with
without
house
A
ment inherits
this basic issue.
on
became
heating
houses
toward
back
Managed economy
It will fail
radiant
new
ments.
Administration and
any
basementless
foundations
poured in with the foun¬
dation. The trend is now definitely
legislative halls. Let
no one make any mistake about that.
It is a system which
has always failed, and in our judgment always will.
What troubles us greatly is whether or not the voter this
autumn will find himself in any position to register his
under
slab
a
foundation
after the house is built.
from page 14
The
ture
House Values
Today & Tomorrow
next
in
most
important
expansion.
and-a-half
fea¬
houses is the lack of
new
for
space
house
is
The
the
story-
best
an¬
to this problem and is prov-
swer
We estimate that the aver-
nance.
still in evidence.
than
stake in all this.
at
produced
Slab
could be
in the White House or who is in the
moneys
actually being spent. One could forgive some miscalcula¬
tions in the timing or the requirements of the rearmament
program, if the political wiseacres had not made so much
noise about what they were going to do that serious
repercussions throughout the economy resulted—and are
more
1
popular. This type of construction
was
relatively inexpensive, and
System
called by that name or some other)
(whether
Miserable Failure
is
party
any
In these words the
seems
a
Administration and
one
much
that
remains
Thursday, March 13, 1952
.
builders
party. That Administration and that party have failed
us horribly.
There is no doubt about that, but the fact
on
"Fortnightly Review" of Carl M.
Loeb, Rhoades & Co. presents one of the aspects of what
to us is obviously a miserable failure in planning and
executing the rearmament program. It is not only in
metals that the planning or the production agencies (or
probably both) have badly miscalculated and mismanaged.
It has been obvious for long while past that there was
something badly out of whack in the rearmament effort.
Expenditures have persistently lagged behind promises
and are still lagging.
No one in his right senses would
object to the fact that the national government is not
spending as much as it said it would or as we expected it
to spend if only we were getting the things it said we had
to have to protect-ourselves, or even if we were getting
failure of
mere
a
of
danger is that all too many will see in all this
One
.
houses.
Failure
merely in al¬
locating more metal to civilian products. Would an unV fettered automobile production, if it were possible on other
grounds, quickly absorb these metal overages? That, of
course, depends on whether the true demand for auto¬
mobiles at this stage is much above the four to four and
a half million car level of current production.";
.
Immediately following the war,
Democratic
candidate this autumn.
restricted too much and the corrective lies
what
Chronicle
The Commercial and Financial
(1028)
loses interest in the prop- jng
owner
m0gt; practical type pLresirehabilitation to the erty.
dence. The second floor otters the
when purchasing a
New House Appraisals
cheapest, easiest,, most satisfactory
1928 house is approximately 10%
The new house is usually in a manner of expanding the living
to 15% of the purchase price. This new
neighborhood. Few people space.
Such expansion oi living
includes such items as painting want new houses in old neighborspace requires no foundation, sideand decorating, modernizing kit- hoods.
New
subdivisions
are walls, or
roof; and a fair mechanic
chen,
modernizing
bathrooms, usually on the perimeter of the can build two bedrooms and space
plumbing
and
heating
repairs, town or city. In late years, new f0r a bath with his own hands,
electrical
work,
new
hardware, neighborhoods have often been Meanwhile, the family enjoys amand
other
miscellaneous
items, created by professional operators
pie attic storage space or play-
of
cost
age
owner
new
*
Not and floated on slim governmental room for the children on
a
rainy
changes financing. The cash stake is not day. Birthrates have been steadily
in interior
plan; elimination of very heavy. When the develop- increasing during the past few
free standing radiators; major al- ment is
completed, these operators years. As the children grow up,
terations in exterior design;
in- often "silently fold
their tents they need separate rooms. The
stallation
of
additional
baths, and steal away." This is not true two-bedroom house is rapidly outlavatories, and additional garage of the large developers of national grown, and the expansion attic
space. Even after such rehabilitarepute, but it is true of many of offers the alternative to selling
These
are
included
the curable items.
such items
are
as
tion, it is still an old house in an those of the come-and-go variety, and buying another home. Favor
old neighborhood subject to all The result is that the
neighbor- the expansion attic and give it
undesirable
those
that
influences
hood
looks
rather
distressful
in
credit in your loan,
neighborhoods appearance, and the first impresSmall bedrooms, dining space
when they are over 20 or 25 years sion of the loan committee is to
instead of a dining room, small
old. Progress has by-passed these turn down
any loans in new de- kitchens, and the elimination of
neighborhoods. The new develop- velopments.
''■VV:v ;•
halls and vestibules are all necesment is taking place in the subAn all
too
familiar statement sary in the interest of economy
urbs.
The automobile,
new
ex- concerning many such projects is and
are
being accepted by the
press highways, school bus serv- "there are the
slums of tomor- younger generation.
Closet space
ice, etc., have obviated the neces- row." This phrase is overworked is often small and offers a further
sity of being within walking dis- and is not generally true. Young argument for the expansion attic
tance
of
station,
schools,
and people have bought these houses, and basement in small houses,
shops. Here is a definite well de- and by one process or another,
Some of us have a prejudice
fined trend. It must be recognized, with
many heartbreaks, they will against prefabricated houses. This
usually creep into
,
More Than
a
Forecast Gone Sour
There is, of course, much more in this situation than
forecast gone sour. The fact is that if
anything in the
nature of a real recession is in store for us in the months
a
to come,
it may be laid upon the doorstep of the economic
planners, the defense managers, and the political moguls.
They are the ones who talked and talked about impending
shortages of this and that. It was they and their pronunciamentos
which
sent
the
ordinary citizen into the
buy while buying was good. It is to them that
responsibility must be assigned for the rise in prices
stores to
the
which
came
and the
are
the
ones
who insisted that controls must
things, and in so insisting led Tom,
Dick and
Harry to suppose that they must go out and
"beat" the
forthcoming controls in any way that they
could.
These
same
groups are,
as
a
matter of fact, now
and
strengthened—
sticking to their
story of probable shortages, and hence the necessity of
giving government powers which are safe (if they are
ever safe)
only in direst emergencies. It may be, of course,
that
Humpty-Dumpty is off the wall by now, and that
all the
King's horses and all the King's men will find it
difficult to restore
Humpty to its former vantage point,
but, if so, one is obliged to wonder what the need of
and
in
some
controls
now
instances at least
are
still
is.
It is unfortunate for the President and his
certainly unfortunate for the country,
have got ourselves into this
lectured just the other
day
he would
mess
that
at this time.
We
were
by the President, or what
probably call the doubting Thomases were, about
the "folly" of not
doing what the President tells us to
do about the extension of
foreign aid. Much the same
sort of
outpourings are heard daily from those who urge
Congress to extend the authority of the Administration
to control various facets of
we
a
shall
our
economic life.
Of course,
presently be asked to give the Administration
national vote of confidence
—-
and
that
quite without
of make
an
of
thumb."
Take
it
with
a
grain
Estimate the sale price of
old house as of 1940.
Since
it
suffered
has
further
de-
the value of the dollar has depreciated
Add
too.
50%
to
the
a
They have
courage
tenac-
a
dates
far beyond the
25
back
years
to those
There
ago.
saw
is
com-
?
built
no
we
r
parison
between
the
ready-cut
houses of the 1920's and the care-
fully
engineered
mass-produced
prefab of this age.
In general, the
materials, the planning, the engineering, and the fixtures used in
the better known prefabricated
be landscaped, the house repainted homes are as godd as, if not better
over th^ builder's prime coat, and than
the
conventional
product,
the public pressure exerted by a The
questionable
factor is
the
large number of voters will result method of putting the house to-
12 years, but
or
home.
estimate of the aging trustees,
Excepting those which are obviously "Jerry Built," five years
from today these developments
will be "over the hump." They
will have a high degree of pride
of ownership.
The grounds will
of salt.
the
a
ity and
the following rather unique "rule
1940
sale
price. Example:
1940
sale
price, $8,000; add $4,000; total, in good roads and an improvement gether. The manufacturer cannot
$12,000. The house sells for $20,- in public services of all kinds.
control such items as the proper
000 in 1952; application is for loan
I have witnessed this result in drainage of the basement or the
of $13,000. Keep loan under $12,- Westchester County and on Long manner in which his
product is
000, preferably 10% to 20% below Island, i Within
one
year
after nailed together. It has been my
or
about
one-half the purchase Levittown was completed, owners experience that the prefabricated
price. This should preserve some were
able
to
take
substantial house, when built in quantity, ofequity if values drop 40%. Values profits on their houses if they de- fers more space with better plandropped 50% from 1928 to 1938-42, sired.
Turnover,
however,
has ning at less money than the conwith static mortgages. With amor-
Deen
tized mortgage, this margin should
afraid of
be ventional building. Look carefully
and at the basements, the roof, and the>.
be safe.
The people of America do
not be too concerned with flashings around the doors, win-:
want new things—new cars, new houses that look alike. Maybe the dows, and chimney. These are the
refrigerators, new television, new older residents on the other side danger- spots.'1 The reputation of
gadgets. We have a dynamic econ- of the track protest, but the young the builder is important in reomy
aides, and
we should
form
a
appraising the loan value of
old house, I have often used
preciation for 10
upon many
insisting that controls be continued
suffer
In
1940
drafting of rearmament plans.
They
placed
be
close upon the heels of the outbreak in Korea
Neighborhoods
obsolescence.
,
Be
"only
love."
In
cautious, therefore,
a
which
do
opinion
are
not
a
new
So, do
not
subdivision;
the very fact tha#4he houses
house similar leads to
grandmother could
my
these houses
many
of
the
full
further
believe
that
true
a
the
ord
are
wholesome spirit
democracy: in
spect
loss
space
cam-
are
mentioned
All
factors
are
multiplied
the
"orphan"
of the above-
of
family requires much less
materials, here
are
facts:
Dry wall construction is
generally accepted on all exCept luxury housing
In the Midwest?
are
only
built
commercial
with
buildings
plaster
interior
vvalls~
,rtV
™
~
,
u
;».•
^
j
u
,(2) Plywood sheathing and sqbr-..
^oonnS 1S a ftnmg 3^ bot
than conventional sheathm^ boar .
depreciation space than their grandparents, but
times during shrinkage has in many cases gone
period when the to the extreme^ :
P ''
'
many
new
(1)
for the average family. This
modern
What has
What is his rec-i
now
.
foreclosed.
to
some proven
have- contraction; of
lost
housing.
new
in the community?
As
-
spa<?e
has been
sight of the terrific cost of brought about in order to meet a
acquisition when these properties price. There is no^doubt that the
we
to
been his history?
munity.
*
The chief weakness of the new
house is lack of adequate living
of
oversold at prices
take
through depreciation into account.:
I
light.
on changing the new folks must recognize the economy
old, and that applies to a of mass construction, and perhaps
house.
when you make a loan on
that
a
based
for the
new
very
(3) Maple,
beech, and selected
~
yplume 175
Number 5093
.
.
.
The Commercial and Financial Chronicle
.
hard pine are all good substitutes
for oak flooring.
(4)
Radiant
satisfactory
heat
is
Continued
best
perfectly
with
direct,
air
quickly
returns—
responsive,
and most economical.
This system
nothing to drain or to
when the family goes
freeze
up
away.
The best fuel to be used is
country
industry would
the section of the
upon
in
which
the
tion
tests
with
appraiser.
think
like
A
experimenta¬
available
this
to
your
Do not be afraid of the
simply
"they
that
They
has
and
is
house
new
and
Illinois
materials
new
information
of
did
because
not
you
build
them
in
the good old days."
be built much better.
may
Concluding,
it
possible
were
picture of
draw
to
composite house
a
result
in
would
be
mongrel
a
about
height with
shallow
house.
stories
l1/^
It
in
pitched roof with
colonial,
some
ranch
some
some
modernistic
able
over
and
influence.
Which
of
will
ten
be the
most
believe
suited
It
or
should
be
locality in which it
should
be
adapted to
climate, the topography, and
the tradition of the particular
cation.
Why build
farmhouse
fornia:
in
called
in
and
in
or
Cali¬
Mediterranean
a
type
Boston;
lo¬
England
New
a
Florida
why
Moorish
the
why
cowshed
or
suburbs
build
the
of
so-
hencoop type
anywhere? Let your prime requi¬
site in the matter of design be
like to live in
the
the
a
Very few people
house about which
neighbors
lives
in
crazy
I still believe that the most last¬
ing architecture will be that which
in
dition
the
of
while
and
homes
and
now
the
of
deviate
we
traditions
degree the tra¬
some
past;
these
from
then, the ten¬
dency is to return to these
designs in subsequent
is
a
basic
years.
People want to live
floor
definite trend.
to be
a
with
now
on one
There appears
its
melding of the ranch type
long low lines, and the
colonial
with
the
peaked
roof
rather than the flat variety.
matter of
fact,
we
a
building
are
As
the days
of 1920, was generally referred to
as
a
bungalow. In my territory,
Westchester
the
tradi¬
tional
has
its
was
The
type is
not
wanted.
the
colonial
tinue to be
1920's
and
Spanish
is
or
out of place and
Of
the
modifica¬
popular and will
con¬
The so-called ranch
so.
type is popular too, but expensive
built
when
on
functional
floor.
one
designs
are
Radical,
experi¬
mental; they lack real beauty, and
from
the
United
States
Department
personal income
rate.
steel and other metals
on
this week indicates
are in the making,
"Steel," the weekly magazine of metalworking.
soon are decontrols on steel mill secondary products,
those which are not of prime quality and by mid-year, all light
steel
products may be decontrolled, government con¬
In the Washington offices of the National Produc¬
trollers reveal.
tion
would be given a sporting chance if you bet
controls
by next Jan. 1, this tiade journal declares.
a
Authority
you
few dollars that all steel products will be out from under
for the report that secondary steel will be de¬
shortly is Herbert Johnson, chief of NPA's iron
He explains that steel users are reluctant to
Authority
controlled
very
and steel division.
their
Materials
Controlled
when they can get better
of this
tions
for
faulty
material
An initial move in recognition
NPA's establishment last week of three new classifica¬
was
of
Plan, tickets
irregular
quality.
off-grade tin plate and terne plate to help
or
large quantities of off-quality material backing up at mills
and warehouses.
move
Frank
T.
McCue, assistant director of NPA's iron
and steel
committee that "we have at least nine
months to go before controls on steel can be lifted."
That means
there's a possibility of a lifting of steel controls around Jan. 1,
division,
told
house
a
"Steel" notes.
weeks
few
A
the trend
Now
steel
steel
was
decontrolled.
reflected
is
of
Administration
Production
stainless
by release by the Defense
30,000,000 pounds of aluminum,
largely sheet and 20,000,000 to 25,000,000 pounds of brass, largely
sheet,
for supplemental allotments for second quarter.
Further
supplements is possible by. ARril, it adds.
Easiness, the magazine states, has penetrated the steel market
far
enough to begin influencing attitudes of steel company scrap
on getting the grades they specify;
A Detroit mill
letter warning them not to go long on its
account.
Chicago mills for several weeks have received scrap
slightly in excess of their melting rate despite capacity operations.
Demand for cast scrap continues slow, and in some areas there
are no buyers at any price, it asserts.
Except for easing in prices of cast scrap, all iron and steel
market prices remain firm at ceilings, concludes "Steel."
insisting
They're
buyers.
they're showing further sensitivity to the market.
sent
brokers
scrap
a
American
The
and
Iron
Steel
Institute
announced
this week
companies having 93% of the
steel-making capacity for the entire industry will be 101.8% of
capacity for the week beginning March 10, 1952, equivalent to
2,114,000 tons of ingots and steel for castings, or an increase of
0.5 of a point above last week's production of 2,104,000 tons, or
that
the
operating
of
rate
steel
101.3% of rated capacity.
The
steel
latest
ever
week
sets
to be made in
a
a
new
record for the
largest amount of
week in the United States, the Institute
reports.
*
A month ago
output stood at 100.1%, or 2,079,000 tons.
A year
production stood at 100.1%, or 2,001,000 tons.
ago
Electric Output
Rises Above Level of
a
Week Ago
The amount of electric energy,
distributed by the electric light
and power industry for the week ended March 8, 1952, was esti¬
mated at 7,496,710,000 kwh., according to the Edison Electric
Institute.
The current total
was
80,744,000 kwh. above that of the pre¬
702,193,000 kwh., or 10.3% above the total
output for the week ended March 10, 1951, and 1,560,124,000 kwh.
in excess of the output reported for the corresponding period two
ceding week.
It
was
years ago.
Car
Loadings Recover Ground in Post-Holiday Week
seedy
house, like
old
a person, should grow
gracefully. This cannot be ex¬
Houses
seldom
are
built
with¬
out mortgages, so the mortgagee
controls the
building movement
both
It
over
are
to its
as
tion.
can
the
to
be
velocity and its dura¬
have
kind
of
built.
further
is
a
responsibility and requires
ago,
heavy
a
con¬
revenue
cars,
31.5% above the comparable period two years
when loadings were reduced by a general strike at bituminous
and
2,710
trucks
in
trucks,
and
or
U. S. Auto Output
Passenger
according
car
Falls About 2% Under Previous Week
production in the United States the past week,
to: "Ward's
Automotive
Reports,"
declined
to
84,350
units, compared with the previous week's total of 86,450 (revised)
units, and 139,595 units in the like week a year ago.
stant and alert attitude toward all
Passenger car production in the United States rose last
?Uout
tial real estate market.
was
2%
close
below
the
previous week.
to^2J3i% under the like period
week
Output of cars, last week
a year
ago.
j
*
>
March
industrial
and
from
6
163
in
failures
to
rose
170
the
1939 level of 286.
down 41% from the
221
in 1950 and
involving liabilities of $5,000 or more increased to
from 130 in the prior week and 114 in the comparable week a
were
Failures
This size group accounted for all of the week's rise; on
with liabilities under $5,000,
year ago.
the other hand, small casualties; those
dipped to 26 from 33 and were not as numerous as in 1951
failed in this liability class.
when 39
concerns
Wholesale Food Price Index Strikes New Low for Year
Bradstreet wholesale food
A further mild decline in the Dun &
price index last week brought the March 4 figure to $6.56, a new
low for the year and the lowest since Nov. 7, 1950, when it stood
week ago, and
The latest index compared with $6.58 a
$6.52.
number of $7.27.
represents the sum total of the price per pound
of 31 foods in general use and its chief function is to show the
general trend of food prices at the wholesale level.
drop of 9.8% from the year-ago
a
index
Wholesale Commodity Price Index Reflects
In Latest Week
The
gradual downward movement in the
Mild Decline
general price level
bringing the daily wholesale
commodity price index, compiled by Dun & Bradstreet, Inc., to
a new 1952-low of 301.0-3 on March 4.
This compared with 303.13
a
week earlier, and with 324.00 on the corresponding date last
year.
■
' —
•
Grains continued under pressure the past week, particularly
in the early part of the period, and prices moved generally lower.
Selling was largely influenced by weakness in other commodities
and the receipt of some moisture in the dry areas of the Great
Plains.
Despite the lull in export buying, wheat clearances for
the season through March 1 were reported at about 300,000,000
bushels.
According to a Department of Agriculture report,
farmers placed almost 210,400,000 bushels of their 1951 wheat
under price support through January, 1952, compared with 194,-^
500,000 for the 1950 crop.
Parity prices as of February 15 were
increased one cent for wheat, barley and rye, with corn and oats
unchanged. There was a substantial increase in corn marketings
last
week
with arrivals at
principal markets totaling about
through the past week,
continued
8,000,000 bushels.
futures on
sharply to a daily
about 42,000,000 bushels, from 32,000,000 the previous
Due to heavy
liquidation, transactions in all grain
the Chicago Board
average
of
of Trade last week increased
week, and compared with 45,000,000
bushels
a year ago.
-
reflecting the
supply position of most buyers and an absence of any
important price developments.
Cocoa values were firmly main¬
tained at or close to ceiling levels, reflecting the continuing tight
spot market condition.
Demand for coffee improved somewhat
at the week-end; final prices were slightly below a week ago.
The
domestic
raw
sugar
market developed
considerable
strength, aided by commission house and investment buying and a
flour
Domestic
business
was
small in volume,
balanced
steady demand for refined sugar.
moved irregularly
influenced by trade
price-fixing and short covering.
Declines in the latter part of
the week were attributed to weakness in outside markets, con¬
tinued slowness in the goods market, and reports of further
curtailment in mill activity.
Trade volume in the ten spot mar¬
kets was light, with total sales for the week reported at 87,000
bales, as against 73,900 bales reported in the preceding period.
After
strong start, spot cotton prices
Early steadiness was largely
a
lower last week.
mid-February
The
cents
34.47
a
parity
for
price
cotton
pound, up slightly from 34.35 a
Trade Volume Somewhat Lower
was
announced at
month earlier.
Again in Past Week
by inclement weather in some parts, retail shoppers
reduced their spending to some degree in the period ended on
Wednesday of last week, Dun & Bradstreet, Inc., reports in its
current summary of trade.
Retailers in most lines except foodf
were
unable to match the sales figures of a year ago. /While
Hindered
shopping
was
noticeably hindered in New York,
Washington by snow, the Miami
Philadelphia and
tourist trade was reported at an
all-time peak.
period noted was
from 2% to 6% below the
level of a year ago.
Regional estimates varied from the levels of
a year ago by the following percentages:
New England —3 to —7; East and Midwest —2 to —6; South
—2 to +2; Southwest —4 to —8; Northwest —1 to —5; and Pacific
The
country's retail dollar volume for the
estimated
by the above agency to be
Coast —6 to —10.
Department store sales on a countrywide basis, as taken from
Board's index for the week ended March 1,
the Federal Reserve
1952, decreased 15% from the like period of last yean
In the
preceding week a decrease of 12% was registered below the like
period a year ago. For the four weeks ended March 1, 1952, sales
declined 10%.
For the period Jan. 1 to March 1, 1952, department
store
the
sales registered
a
decline of 11%
Retail trade in New York
lower volume than in the
was
below the like period of
preceding year.
continued the past week to
like period of 1951.
about 15% under a year ago,
since
<■
?
Slightly Upward
scare
reflect a
Although the decline
business actually was
buying in the comparative period
was
"normal"
staging a last
flurry.
phases and trends of the residen¬
*cars,"
coal mines.
control
buildings which
This
Loadings of
755,624
totaled
•
in the week
balance between demand and supply of
a
metals
other
and
chrome
ago
toward
181,175
the
As they weather, they look
rather
than
mellow.
A
years.
and 30,485 trucks
preceding week, according to
Dun & Bradstreet, Incr
While casualties exceeded last year's
comparable total- of 153, they remained considerably below the
Commercial
ended
The
ing architecture."
well with
cars
Business Failures Move
showed
Coming
flat-rolled
84,350
of
the preceding week
and 2,744 trucks in the similar period of a year ago.
8,031 cars
at
pected of some of this "out-build¬
wear
up
States, against 86,450 *
and 24,910 trucks last week and 139,595 cars
against 4,327
full complement
freight for the week ended March 1, 1952,
according to the Association of American
Railroads, representing an increase of 72,256 cars, or 10.6% above
the preceding week when loadings were reduced by the Wash¬
ington's Birthday holiday.
The week's total represented a decrease of 30,237 cars, or
3.8% below the corresponding week a year ago, but a rise of
not
they do
made
was
says
houses,
new
with
type
tions is still
so-called
the
in
movement
popular.
Moorish
the
built
dead-end
a
less
value;
type
decontrols
more
main¬
County,
colonial
style
tained
week
The market outlook for the steel industry
that
a
type of house which, in
English
a
Steel Output This Week to Surpass All Previous
houses will be lower. This
so
week
27
144
this
learned
is
for almost two-thirds of the total annual
goes
that
house."
preserves
makers,
car
increases in these
"There
say,
who
man
house—not like
a
out-building.
an
several
January dropped to an annual rate of $257,000,000,000.
This
was a
decline of $1,000,000,000 from the previous month.
The
drop was blamed mainly on lower corporate dividends and farm
income.
Personal income includes wages and salaries, net income
and proprietorships and partnerships, and other types of indi¬
vidual income.
Wages and salaries, it was pointed out, accounted
or
that it look like
are
in
cash
house
a
the
to
built.
the
popular five
from today?
years
I
is
period of time? Which
a
"Indications
days."
It
these influences will be most dur¬
'
said:
operate at restricted rates, will instead work
of 21
a
rep¬
part excavation and
a
per¬
High Weekly Records
resenting all the styles built since
the war, it would most certainly
a
it
Mongrel Composite Structure
If
1,006,000
which otherwise would be forced to shut down part of the month
of Commerce's office of Business Economics that
University
featured
the
,.
built.
The
than
cars
the government for this year's quarter.
"Brightening prospects for March are strong daily rates and
Saturday overtime at Ford, steady General Motors and maximum
21-day Chrysler assembly plus higher volume at Willys compared
with several weeks ago," "Ward's" observed.
*
-
is
house
turn out 23,956 less
mitted by
or
dependent
current
trucks built in the United
24,737
in the comparable period a year ago.
Canadian output last week rose to 5,070 cars and 2,500
is
cold
for the
output
and
cars
heating system
by far forced
houses
air
leaves
Total
5
page
if
proven
for small
most
(1099)
cars
slab; best in baseboard panels. But
warm
'"
properly installed;
ceiling than in concrete
better in
the
'
According to Federal Reserve Board's
index, department store
the weekly period ended March 1, 1952,
decreased 16% below the like period of last year. In the preceding
week a decrease of 11 To (revised) was recorded below the similar
week of 1951, while for the four weeks ended March 1, 1952, a
decrease of 11% was registered below the level of a year ago.
For
sales in New York City for
the
period Jan. 1 to March 1, 1952, volume
period of the preceding year.
the like
declined 15% below
,
28
The Commercial and Financial Chronicle
(1100)
Continued
jrom
ritif.s
11
page
Act
amended
of
should
1933
Congress
the
by
be
to
re¬
solve the
McCormick Urges
Easing Rules on
Underwritings; Favors Frear Bill
praisal of the junior securities of
the large
even
well-known indus¬
leaders is not needed for the
trial
high grade bonds, because the lat¬
will
ter
business
have,,,
affected
be
not
inevitably
that
changes
by many
direct and immediate im¬
a
value
pact on the
securities.
the
of
junior
of return; (5) state the
rate
which,
at
conditions
the
Private
of
Placements
10—particularly lOfb)2 and 10(b)
tional);
4
and
—
19(a)
the
of
Securities
Act to place
bonds of institutional
special classification
which could be registered through
in
grade
the
a
filing of
abbreviated regis¬
an
tration
statement
sold
the basis of
on
and
could
short offer¬
a
be
accomplished through the fil¬
ing of a copy of the indenture, a
specimen of the bond, opinion of
counsel as to the legality of the
bonds, a copy of the underwriting
contract, and a prospectus which
would (1) state by whom orders
will be executed; (2) identify the
security,
the
the
and
assets
rity; (3)
security;
issuer, its business,
securing the secu¬
state
(4)
the
District
which
pay
the
price of the
state the specific
(op¬
the
extent
to
has
issuer
the
Territory or
Columbia
of
state
(8)
or
tin-
under
agreed
to
tax with respect to the
(optional); (9) state the
any
security
of the issue; (10) state
the underwriting spread; and (11)
purpose
furnish
sheet
ance
The
and
plan/in
bal¬
condensed
recent
a
a
of
summary
could earnings for the last 10
Registration
ing circular.
be
of any State or
years.
opinion,
pro¬
vides clear benefits without sacri¬
ficing
to
to
an
hut
exchange
any
or
market,
counter
solicitation
the
not
orders."
on
or
of
It is the opinion
engaged in the securities business
that
intendment
the
emption
is
without
that
this
of
when
ex¬
broker,
a
him
prior
any
pursuant
order h
the
to
unsolicited
consequently, the broker need not
ascertain whether the security in
question is registered under the
Act.
he
need
nor
supply
a
abbrevia¬
the
that
4(2)
of
the
Seen-
is
effected
part
of
correct,
without
be
cannot
expensive
clarified
litigation, and
therefore
be
made
defi¬
by the expression
exemption in unquivocal
the
We
fected
believe
by
that,
brokers
unsolicited
orders
it, meant
empt,
plied
such
no
Commission
pursuant
should
the
to
be
ex¬
exemption
statute.
dual
engrafted
first
-
OruM-iny,
caveat
in
SEA
Thursday, April 17 at the regular
alleys, at City Hall Bowling Center, 23 Park Row, from
5:30 p.m. to 8:00 p.m.
There will be a dinner following the bowl¬
ing at the Grand Street Boys' Clubhouse, 106 West 55th Street,
plicable
STANY
securities distributed in this
at 9:00
Functions
For reservations contact Sidney Jacobs,
Sidney
Broadway, New York 6, N. Y. (WOrth 4-6394).
SECURITY
TRADERS
Security
ASSOCIATION
OF
Traders Association of New
ing League Standing
as
of March. 6, 1952
are
TEAM
follows:
as
V";,
_
.
•
77
Mewing (Capt.), G. Montanye, M. Meyer, LaPato, Klein.__
(Capt.) Rappa, O'Connor, Whiting, DeMaye
Serlen
(Capt.), Gold, Krumholz, Young, Gersten_.____._
Leone (Capt.), Tisch,
O'Marra/ Nieman, Bradley.........
Hunter (Capt.), Craig,
Fredericks, Weseman, Lytle.
Krisam (Capt.), Gavin,
Gannon, Jacobs, Murphy
Burian (Capt.), Siepser,
Hunt, Growney, Kaiser
H. Meyer (Capt.),
Swenson, A. Frankel, Wechsler, Murphy.
Greenberg (Capt.), Siegel, Cohen, Strauss, Voccoli
69
Donadio
200
5
....234
George Leone
Ricky Goodman
&
Kumm
202
vs.
Serlen
Point
in
1947
of
the
student
;he
vs.
Bonadio
,
Mewing'
Bean
vs.
its
OF
AND
OF
DETROIT
MICHIGAN
it
uad
has
summer
outing
and The Security Traders Associa¬
Michigan, Inc., will hold their bi-annual joint
June 16 and June
17, 1952; (June 16 at the De¬
troit Boat Club and June 17 at
the Lochmoor
Country Club).
on
TWIN CITY SECURITY TRADERS
The
annual
Lodge
City Security Traders Association is
having their
summer
outing
Operation Fishbite No. 4" at Grandview
on
Gull Lake, June 20, 21, and 22.
sale
of
and
1947,
Adams Truslow,
Curb
Exchange,
Financial
Chronicle,
811.
p.
Why Mr, McCormick
LOS
to
The
Financial
Chronicle)
White
E.
Calif.—Elmer
ANGELES,
has
Co., 210 West Sev¬
members of the
Street,
Stock
Los
Exchange.
Mr.
formerly with Holton,
was
Co.
&
associated
become
with Harker &
Stock
as
Exchange
representative.
Favors Frear
Amplifying
tion
the
of
would
few
...
security
its
me
"Will
we
curities
evi¬
file
to
statements
similar
quired
companies
annual
those
to
re¬
listed
on
registered exchanges, Mr. McCor¬
mick, in answer to a question by
Heller, "If the Frear Bill is
Rep.
passed
would
ference
the-counter
the
and
sales
the
sales
national exchanges?"
"It
is
if the
opinion
my
ties would
over-
the
posed
and
that
during
perform all
job
upon
a
before.
by
experience the
my
.
.
.
for
were
passed, be¬
would
that
the
ad¬
has
nouncement
the
been
—
Viscount Hardinge and W. D.
Campbell
partners
of
have
become
Greenshields
Directors
Co.
&
Greenshields
of
Cecil M. Rhodes With
Eppler, Guerin Co.
HOUSTON, Tex.
Rhodes
has
been
Cecil Mack
—
named
special
a
Fort Worth representative for
Texas
listed
if
the
would
Frear
be
Bill
listed
were
the
on
national exchanges?"
Mr.
McCormick:
rect..
think
I
Worth
"That
that
is
cor¬
be
would
the
of
answer
There
house
would
"And
larger
mean
a
on
the
trading
likewise
volume
exchanges,
of
and
likewise business for the Curb? "
Mr.
McCormick:
"That
offices
the
for
investment
in the Neil P. Anderson
are
Rhodes
with
ciated
was
the
formerly
First
my
is
asso¬
Bank
and.
Trust
Company
of
Hendersonville; the Central National Bank
of
Richmond,
Va.;
City
the
tional Bank of Galveston
is
the
firm
Fort
banking
Building.
Mr.
Heller:
investment
of Eppler, Guerin & Turner.
result."
Mr.
&
Co., Inc., 507 Place d'Armes.
com¬
"Well, do I under¬
to say that many of the
President
most
Trust
and
Na¬
Vice-
as
Officer,
and
recently he resigned as Vice-
President and Trust Officer of the
First
With State Bond &
(Special
NEW
to
The
Financial
ULM,
Mtg.
Mortgage Co., 26l/2 North
associated with State
Minnesota Street.
The
Financial
formerly
Montgomery
Waddell
&
are
Street,
Joins King Merritt
The
Financial
Stokes
staff of
King Merritt Co.
to
Co.
(Special' to The Financial Chronicle)
SPRINGFIELD, Mo.
(Special
of
members
San Francisco
Reed,
J.
With
Chronicle)
Calif.—A. J.
Stock Exchanges.
Inc.
is
Financial
The
Walston, Hoffman & Goodwin, 265
Corporation, Grand
Building. He was
with
to
the New York and
Chronicle)
KANSAS CITY, Mo.—Ralph L.
Nafziger, Jr. is now with Hamilton
Bank
(Special
SAN FRANCISCO,
Bellizzi has become affiliated with
With Hamilton Managem't
to
to
Walston, Hoffman Adds
F.
Bond
(Special
Paris
of
Chronicle)
Minn.—Charles
now
&
Bank
National
join Eppler, Guerin & Turner.
Doerr is
Avenue
Act
An¬
that
made
has
been
—
William
added
the
to
King Merritt & Co., Inc.,
Woodruff Building.
Chronicle)
reasons:
KANSAS
"First: There is
Act
which
prohibits
or
and informed
no
provision of
in
practice
prevents
man
in
to¬
an
hon¬
our
busi¬
Basford is
&
Co., Inc.
CITY,
now
He
Mo.—Paul
J.
was
formerly with
Waddell & Reed, Inc.
whatever
others
may
think of its merits, or from invest¬
his
own
his
clients
there
capital
how
is
no
to
or
advising
theirs,
invest
provision of
the
ST.
to
Financial
Mo.
has
Incorporated,
314
Exchange.
ously
with
relating
to
—
become
Stock
provisions
with
Financial
June
has
S.
members
Lloyd
Jones
He
R.
associated
become
Co., U. S.
&
was
formerly
C.
associated
North
of
the
He
Taussig,
Broad¬
Midwest
was
Day
previ¬
&
Co.,
Inc.'
Henry Swift Adds
(Special
SAN
fred
to
The Financial
i
Lz'.>
*
•'
■
Chronicle)
—
Al¬
been added to
the
FRANCISCO, Calif.
Edell
has
staff of Henry F.
California Street.
i
Chronicle)
Ore:—Herbert
Bank Building.
Chronicle)
Stifel, Nicolaus & Company,
way,
J
The
with Foster & Marshall.
LOUIS,
Ainsworth
with
The
Exchange
statutory
to
PORTLAND,
Joins Stifel, Nicolaus
(Special
tered
Act as now adminis¬
( with the possible exception
of the margin regulations and the
(Special
Bachofner
negotiating out, offer¬
ing, and selling a new issue of se¬
curities,
Joins June S. Jones
with King Merritt
from
i
Department
Connolly & Co., Inc.
Admit Two to Firm
Heller:
stand you
J.
associ¬
MONTREAL, Que., Can.
and
Management
Exchange
opinion and
my
Trading
panies would' list."
Mr.
Walter
become
Greenshields Go.
believe
ac¬
the Securities
In
the
Walter J.
Stanley
Se¬
the
(Securities
1934)?
of
securi¬
great number of the
a
has
Chronicle)
—
Goodbody & Co., 50
State Street.
Mr.
Connolly was
formerly Treasurer and Manager
requirement im¬
them as listed securi¬
I
Financial
Mass.
with
ated
exchanges
on
same
upon
Goodbody Go.
The
to
BOSTON,
Connolly, Jr.
replied:
of the fact that they
have
the
on
more
be listed
Frear Bill
cause
(Saecial
there be much dif¬
between
in¬
our
upon
ever
unqualifiedly 'No!'
ing
with
It
be prevented from
Acts
and
that
functions
complishing that
est
corporations
holders
of
Connolly, Jr.
Joins
which
A peek into the
to
years
of
three
Bill,
per¬
individuals
and
greater scale than
of
Frear
require
Walter
recommenda¬
correct."
functions.
vill be called
dustry
his
unlisted securities and having as¬
sets of $3 million and at least 300
Ex¬
documents
acquired
and
ASSOCIATION, INC.
Twin
Curb
business
broad
future indicates to
ness
Tl?ervBPn<?A^lul)i)f. D?troit
tion of Detroit and
securities
either
ASSOCIATION
York
Presi¬
capital for industry; it in¬
capital for individuals; and
provides a market for the pur¬
Act
PHILADELPHIA
28,
Joins Harker & Go.
Securi¬
Angeles
vests
day
TRADERS
New
Adams
as
try
(Pennsylvania) Country Club.
SECURITY
Francis
predecessor
three
from
ASSOCIATION
the investment
of
48
The Investment Traders
Association of Philadelphia will hold
annual summer
outing June 13 at the Whitemarsh Vallev
Elmer E. White
enth
and
48
Leone
in
appraisal of the situation; that
"The
1933
INVESTMENT TRADERS
scholar
dencing the capital which indus¬
Next Week Is Position Nite!
Commercial
Aug.
by quot¬
48%
Krisam
Acts," by Francis
President,
New
York
Business
chase
schedule is
ties
and
owns
Lloydminster, Sas¬
ac¬
helpful
Business
producer
Canada.
katchewan,
(Special
Securities
a
which, in turn,
at
be
change:
57
56
*"The
majority
of Husky
stock
Refining, Ltd.,
refinery
10.
a
over-the-counter securities would
raises
Goodman
vs.
coun¬
address deliv¬
an
late
my
the
of
forms
56
has
arranged
March
owns
common
&
carrying out the duties entrusted
to it by law."*
Canadian
representa¬
investment industry
serious
three
Hunter
Meyer
in
and
before
distinguished
a
next
Greenberg
in
Committee
portion of
a
60
Club
our next
&
like to close my state¬
tives
65 V->
...213
vs.
vs.
'
Rickv Goodman
bowling night is March 13, 1952,
Burian
69
1946;
Securities
the
to
dent
214
...
Our next
of
should
Truslow,
69
21,
trading
have invested.
Club
Arthur Burian
to
scene,
Points
,
(Capt.), Ghegan, R. Montanye, Krassowich, Manson
(Capt.), Weissman, Farrell, Valentine, Smith
(Capt.), Lax, H. Frankel, Werkmeister, Ried
Goodman
Bean
I
by
Kumm
V
it
of practice and
and
vantage of having and providing
the investors an exchange market
would be so overwhelmingly great
recent promulgations ap¬
ered
Bowl¬
which
years
constructive
passed;
ment
(STANY)
is
the
without registration.
try
Co.,
YORK
Aug.
3815,
more
ing
NEW
York
Jacobs
understanding
ties
Release
tion of Philadelphia will be held
Ill
the
Oil
mission, which administers these
Acts, reflects the knowledge and
quired in 13
been
on
company
a
the
Ilaupt
1934,
No.
its
im¬
upon
Ira
of
to
as
The Security Traders Association of New York announces that
their annual bowling meet with the Investment Traders Associa¬
A charge of $7.50 per STANY member.
The
of crude oil,
when
apply to all such orders and
p.m.
announced
was
of
of
has
privately by Blyth & Co., Inc., it
the 13 years since
"Third: The present attitude
170,000 shares of
Husky Oil Co.,
by
certain • of its
of
Wyo.,
Cody,
stockholders
the Securities and Exchange Com¬
distribution
a
Act.
terms.
YORK
worth
adoption.
exemption is far more limited
in scope and is not available to
the broker, if the transaction so
Congress said that transactions ef¬
OF NEW
and
of
stock
the
of
SECURITY TRADERS ASSOCIATION
be¬
provisions
raised
billions of dollars'
of securities in
their
the
has
Hull
registered.
It is, however, the
opinion of the Commission that
nite and certain
Notes
in
sale
The
be
should
NSTA
industry has
and
Husky Oil Stock Placed
White
not
Section
dealt
Acts
Thursday, March 13, 1952
.
common
pros¬
registration procedure
It is 'he position of myself and
is justified because of the position
other
representatives of the se¬
of the security in the structure of
curities industry that this restric¬
the company and not because
a
tive interpretation of the exemp¬
company
is large and has been tion
granted by the Congress is.
(5)
the
.
pectus to the customer if the stock,
of the
prosperous.
Our
familiar with
come
of
prohibits
or
existence of a free
exchanges.
on
"Second:
exempt from the require¬
of Section 5 of the Act and,
ments
market
which
the
prevents
such
of those
by u person in a control relation¬
essential ship
to
the
issuer
v/ithin
the
I wish meaning of Section 2(11) of the
information
any
the: open
Informed judgment.
emphasize
tion
my
in
cus¬
sijhs-'dcent transaction effected by
similar investors
laws
tomers' orders
upon
legal in¬
companies,
insuranec
ciaries,
other
therefore,
executed
banks, fidu¬
stab
(7)
whether the security is a
suggest,
transactions,
solicitation
whatever on his part, receives an
order to buy or sell securities, the
(optional);
change
that the
SEC be urged to use the author¬
ity granted it under Sections 7,
I
upon
which, and the time when, the se¬
curity may be redeemed or con¬
verted
or
exchanged; (6) state
whether the security is listed ot¬
to be listed on any securities ex¬
vestment for savings
Treatment
price
existing conflict of opin¬
ion concerning its fair interpreta¬
tion. This Section provides an ex¬
emption from the requirements of
Section 5 of the Act for, "Brokers'
what securities may be dealt in on
exchanges)
.
Swift & Co., 493
Number 5098
Volume 175
Continued from
first
.
.
The Commercial and Financial Chronicle
.
(1101)
Not within
page
mission
Honorary Pallbearers
Stock
Exchanges and the securities
over
the
There is evidence of
Nothing
j.
new
business
will be developed.
Then, too, the place and the personnel of the forum
unfortunate.
are
sion
to
were
If the Commis¬
opposed to Title V, it had ample opportunity
Why before the SEC?
speak its piece when the bill
own
the interpretation of them are at issue?
it be
a
the
stature
That
has
come
say
we
relent,
National
powers
and
in the
we
wrong,
were
of
Securities
we
Dealers
low
and does, for
industry.
a
immediate
eliminate
problems raised by the proposed
regulation respecting fees to be charged to brokerdealers, the NASD says, "This bill has been referred to
the Committee on Interstate and Foreign Commerce.
Though it is not known when hearings on this bill will
be held, it is obvious that it would be a sound exercise
of discretion for the Commission to stay the effective¬
ness
of its proposed
regulation pending final disposition
of the bill."
duced
was
previous articles
we
N.
Note:
As
a
JOSEPH
V.
We
pointed out that the clearest, most timely and
remedy in the interest of the country as a
would be the immediate repeal of Title V.
whole
Among the latest additions to the opponents of the
SEC proposal are the New York Curb Exchange and the
National Security Traders Association. The President of
each group
has communicated its attitude to the SEC.
onded
in
is
[Full text of the memorandum
given in this issue of the "Chronicle" on page 10.]
support of its position.
to
that
Congress to the heads of Federal agencies; (2) the proposed
registration fees for broker-dealers and their employees
are not such fees as were intended to be authorized by the
Heller's
is
Editor's
SEC,
and
office
clamp
Bankers
Association
also
asks
for
The Investment Bankers Association calls attention
the Bureau of the Budget is presently study¬
ing the very Commission problem under discussion and
requests that the SEC
take
no
further action
on
its
posal until an overall policy has been established.
pro¬
to
head
a
tax on brokers
dealers
and
and
to
them
force
of
out
March 14
on
Heller
man'
made
the
5
public
of
Johnson,
dent
rules
with
to
on
respect
to
enclosing
letter this
Subcommittee
Mr.
to
Securities
advised
The
page
Securities
NASD
has
am
all
vitation
by the Securities and
response
comment
fees and
to
whereas
C.
the
in¬
which
purely
To
This
Subcommittee
Mr.
posed
which
was
of
this
2:oo
pro¬
at
resolution
following
seconded
by Mr. John
unanimously
and
"RESOLVED
that
of
it
that
Securities
the
Ex¬
and
change Commission should hold
public
hearings
regarding
its
notice of Jan. 31, 1952. which
'is grossly arbitrary and
ing.
"The cost to
rules
existing
with
Commission
to
implement
Offices
The
views
the
Appropria¬
of
said,
Securities
Commission
committee of the
House
Interstate
Commerce
comprises
ing members:
Sub¬
Commit¬
and
the
N.
Pa.;
a
the
ap¬
that
the
the general
of our entire
feelings
to
future
We should like
it if you would
in
counsel
heard
be
and
such hearing so I
W.,
at
"The SEC
exact time and
any
'big
who
K
1625
Mr.
Street,
the
place of any such
T.
JOHNSON,
Association of
Bankers
America.
The
hold
14
coun¬
subject
to
a
ten
per¬
Association
ar¬
and
SEC
hearings
on
small firms who
are
has
in
March
announced
the
31.
matter
can-
.not 'afford to waste money.'
'The proposed fees,' the NASD
said,
'are
statute
not
authorized
by
because registration
the
is not
thing of value or benefit to the
registered.
Congress in¬
persons
Federal
fair
agencies
charges to
spe¬
cial beneficiaries for genuine serv¬
ices rendered; but it did not au¬
thorize
arbitrary
exactions
agency
functions such
dealer
registration
benefit
on
merely
the
to
for
broker-
as
which
confer
registrant,
provide
but
a
legal
recited
what
basis for future action.'
"The
was
Association
involved in
registration
with
the SEC—likening it to the fillingout
will
the
over
The
tax.
that
President, Investment
it
be
make
JOSEPH
March
would
sonnel
exist
»«.
Asso¬
try, 2,300 employ fewer than
should
our gen¬
Very truly yours,
that
the
Of the 2,900 members of the Asso¬
ciation located all
no
Note:
proposals,
advise
hearings.*
*£d.
nec¬
argued, do not strike at
business' or at 'Wall Street/
tended
Washington,
Hanson,
Y.,
whatevex
preparing the
ciation
would appreci¬
Washington, D. C., of
follow¬
relation
of
reference.'
members
understanding that you
appear
'no
cost
form and filing it away for
gued that the vast majority of its
foreign
Harley
O.
Staggers,
W. Va.; John B. Bennett, Mich.
Jr.,
has
also
in. the near future.
Chair¬
man; William T. Granahan,
Pa.;
Leonard W. Hall, N/ Y : John A.
McGuire, Conn.; Hugh D. Scntt.
Heller,
as
public hearing on this proposal
N.
The
this
o n
The $50 annual fee and
bear
the
to
essary
contemplating either a private
are
Murray
Chairman.
Exchange
Associa¬
r
recent meet¬
a
believe
It is my
eral
B.
filing them when they have been
the $10 'head tax,' the Association
membership.
ate
1952."
Note:
I
and
LOUIS B. HELLER, M. C.
Louis
dealers,
be nothing
returned.'
itself
text
and
Very truly yours,
on
and
more than the cost of
printing and
distributing forms and the cost of
a
provisions of Title V of the In¬
tee
the government of
brokers
ot
memorandum reflects
re¬
spect to fees and charges by the
tion Act,
registering
Board
proval of our Executive Commit¬
to adopt new rules and
dependent
il¬
legal.'
of
proposal
ough discussion at
or
amend
for
said,
result of thor¬
tee
the
is
Subcommittee
this
Jt?3eph T. Johnstn
p.m.
W. Hall
adopted by the Subcommittee:
opinion
be¬
fees
views
tion
held
McGuire
A.
re¬
Governors
session
Leonard
the
business
pay
the
Cook:
today,
to
eral
Exchange
executive
an
memo¬
randum
o u
At
fail
the NASD said, 'could
flects the gen¬
and
Mr.
they
registration, the Association
release
1952.
Cook,
put firms out of
such
in
31,
to the registrant, but is
convenience to the SEC.
a
cause
was
dated Jan.
Washington 25, D. C.
Dear
get a driver's license
barber's license certain skills
value
of
pro¬
contained
Chairman
Securities
to
required by law. Registration
the Commission, the Associa¬
tion pointed out, provides
nothing
charges to be
imposed
by
*
*
dealer
or
licensing of those
by
a mem¬
your
on
your
•*
broker
a
a
register with the SEC,
anyone may
•
sion, notice of
Ex¬
B. HELLER.
Donald
sense
engaged in the securities business,
the NASD said, pointing out that
the Commis¬
;;
.
mii
Chairman.
Honorable
charge
annual
an
are
1952.
LOUIS
firms
salesman.
or a
in
new
formal
a
to
proposes
"Registering
C.
change Commission
that
public
hearings will be held beginning
14,
SEC
securities
and
Exchange
for
orandum
tax
them, the
in
registration fee of $50, plus $10
annually for each officer, partner
memoran¬
enclosing herewith
Exchange
posed
"The
.
Gentlemen:
I."
head
a
for
SEC
proposal pending review by Con¬
a
sent
this reonesi. I
D.
plus
the
to
from
tees
request for indefinite delay of the
today's
10.
Mr.
Street, N. W.
Washington,
and
of
told
no
ngressional
gress.
is also Presi¬
Milwaukee Co.,
and
o
registration
is in no
422 Second
its
Commission, requesting ii to hold
public hearings on this matter.
In response to
of
Chairman
and
collect
Commission
in the
copy
C. Cook
Donald
the
of
on
who
connection with the
The
fees
am
given in
Ex¬
Com¬
'directive'
un¬
lengthy
dum:
mnerid
charges, I
a
Milwaukee, addressed the fol¬
lowing letter to the SEC in
com¬
interest
your
Secu¬
mission has
C
Bickel
A.
Clarence
The memorandum in
text is
"Chronicle"
Congress:
Commission
IB A
Securities
broker-dealers,
full
a
proposal of the Securities and Ex¬
change
it.
rities and
brokers and dealers and other
munications:
Because
fail
"The
lor those who work
charges.
its
on
if
to
pay
for opposing the SEC
proposal to levy new fees on
an¬
following
To Members of
business
reasons
proposal to levy fees on bro¬
kers and dealers, etc. Chai r¬
Editor's
delay but its grounds are not tied up with the Busbey bill.
to the fact
efforts
memorandum setting forth its
public hearing at its Washing¬
ton
The
the
to
der date of March 7
t,he
Commission
that it would have
nounced
and
Investment
at
out
government
con¬
Exchange Commission
sec¬
which
Subcommittee
the
Congress under Title V; and (3) that the proposed fees are
equitable" within the standards prescribed
The
today
struck
America
Note:
transmitted
IV.
currently investigating
not "fair and
under Title V.
over
change
Rep. John .4. Mc¬
Gwire
of Connecticut, hor.h
members
of
Congressman
proposes
memorandum the Investment
Bankers Association argues: (1) that Title V constitutes an
unconstitutional delegation of legislative power by the
According
and
Dealers
JOHNSON
T.
Association of
by
The Investment Bankers Association of America has
just submitted a strong memorandum in opposition, to
which it has added an appendix citing legal authorities
members
President, Investment Bankers.
Commission
most effective
2,900
SEC proposal.
well intentioned and
expressed misgivings concerning its constitutionality be¬
cause
only broker-dealers were made the beneficiaries.
for
c<n>,se¬
Rep. Leonard
Hall of New York, cad
called atten¬
piece of pending legislation, saying in effect,
okay as far as it went, but we
on
30,000 of their employees, the Na¬
tional
Association of
Securities
present be¬
we
the
on
HELLER
B.
by
March
it
in ibis connection,
the
statement
a
follows:
as
"WASHINGTON, D. C.—Speak¬
ing
-
Our readers will recall that last week
tion to this
he
11,
Editor, "The Com¬
of the c.omniunications received in
prayer
the
document,
issued
Chronicle," 25 Park Place, New
of a resolution intro¬
quence
March
Calling attention to the pending Busbey bill which
would
LOUIS
Editor's
change, represent
"The Effective Date of the
the
to
March
related phases of the
to
■
Commission's proposed fees on
brokers and dealers, etc. Rela¬
the views expressed
on
.any
Chairman, SEC Subcommittee
per¬
of the memorandum is that
Regulation Should Be Stayed
Pending Congressional Action."
7, New York,
some more
HON.
service to the securities
The
will
"
lengthy brochure citing
for opposing the
a
reasons
thai his identity not be revealed. Com¬
U. S. Congressman from
the Maloney
of 1934, the
NASD couldn't resist the temptation to toot its own horn.
Outside of the fact that this had no place in the argument
we were reminded of the fellow who, describing his family
tree, was careful to perch himself on a topmost branch.
a
on
"Chronicle"
^
they
In giving an account of its birth through
Amendment to the Securities Exchange Act
formance is courageous
its
They will be published anonymously if the
nection with
The rationalizing of this NASD memorandum is
pretty much a resume of the opposing reasons heretofore
assembled by us editorially.
NASD
or
mercial and Financial
Opposition to Certain Fees and Charges Proposed by
Exchange Commission," the NASD is
unequivocal in its opposition.
instant
The
munications should he addressed
the Securities and
the
—
comments
article
writer requests
in
however,
above
subject,
flatly against the SEC proposal is gratifying
whole,
NOTE
pleased to receive
Why shouldn't
In what may be termed a brochure entitled "Com¬
ments of National Association of Securities Dealers, Inc.
the
SEC
free institutions, shall act
preserve our
Securities Deal-
Inc. has transmitted to the
ers,
NASD
EDITOR'S
indeed.
On
SEC, in order to
Co., Milwaukee, Wis.
Association of
adamant determination that
generally, operating through the Congress and
York
Association
an
&
Editor's Note: The National
tive
proposal?
the
out
to
Baird
st raw.
proposal.
The SEC having taken the position that Title V is
mandatory and that its proposal thereunder is proper,
does it, in view of the vast weight of contrary opinion,
have
NASD, and Partner of Robert W-
honorary pallbearers ot Title V and the Commission's
as
supplicant like the rest of us?
withdraw the
Chairman, Board of Governors of
under consideration.
was
Why should it be the judge where its
t
the
CLARENCE A. BICKEL
proposal of the Com¬
any
industry.
bv the SEC to implement Title
V has constituted the last
country.
lias
memory
This current attempt
all
groups
our
stirred the securities
so
29
of
a
census
Commission
form—with
performing
Continued
on
no
the
'serv-
page
30
(1102)
-;30
Continued
>ice'
from
'benefit'
reading of Section 2 (1) of
cursory
29
page
Securities
the
and
Exchange
Act
regis¬ which sets forth the reasons for
said the the adoption of the statute makes
technical¬ it abundantly clear that the regu¬
ity. The sole 'service' performed lation was imposed in the national
by the Commission in connection public inteiest to protect inter¬
\ ^therewith is the furnishing and state
commerce,
the
national
filing of the form.' "
credit, the Federal taxing power,
or
to
persons
'Registration,'
tering.
NASD, 'is the sheerest
the National banking system,
and
McCORMICK
T.
EDWARD
Note:
of
under
McCormick
Mr.
by
sent
date
of
the Securities and
March 5 to
refer
to
.
forth
in
No.
and has
particular ref¬
the
to
proposal
pro¬
mulgated un¬
der the caption
X-15B-
'Rule-
a
as
license
for
inequitable,
the
to the
Filing
whether
for
Rule
"This
require
registered
the
to
pay
broker
and
every
dealer
Commission
in
to
1952,
and
in
every
sum
of
$50.00, plus $10.00 for each
in his employ who par¬
person
ticipated
in
thereafter, the
year
securities
a
transac¬
tion
on
the
registrant's behalf,
supervised such a transaction, or
was a
member of registrant's man¬
agement.
"This
in
proposal
Title
V
had
its
genesis
the
of
Independent
Offices Appropriation Act of 1952,
wherein it is stated to be '.
(No.
publicity
it
be
"So
we
posed
rule
unfair
and
National
Security
Mr.
this
con¬
of the standards set
up
the
act."
the
of
of
SEC
partner
sent
letter
a
under
each
year,
a
transactions
of
the
effected
Securities
and
Exchange
the
.
.
.
.
.
3433
and
of
to
a
ment
officer,'
part¬
etc.,
engaged
in selling se¬
curities
or
pervising such
Hastings
activity.
persons
You
that
state
interested
su¬
all
submit
may
data, views and comments in writ¬
.
,
.
.
.
fore Feb. 20, 1952,
which date was
March 10, 1952.
.
...
.
ing to your Main Office on or be¬
.
extended to
later
Accordingly
this
views
in
this tax
wish- to
we
opportunity
to
absolute
take
express
our
opposition
to
charge.
or
■direct
to
and
indirect
cost
to
double
a
facts.
.
and
.'
.
"As
other
am
nor
pertinent
believe
cussion
it, the total
annual receipts from brokerdealers will approximate
$455,000,
which must be turned
into the
neither
sure
that
,of
,
by the Commission
would be
FROM
behalf of its members, the
New York Curb
Exchange wishes
to
its
express
opposition
to
the
A
NEW
minds
the
tribute $25
questionable validity of this dele¬
gation of taxing authority to the
Commission,
•proposed
believe
we
rule
that
the
is
serious
subject to such
infirmities that it ought
jnot
be
to
adopted.
Fundamen¬
tally we fail to see what, if
work, service, or benefit is
ferred
by the
.broker-dealers
practical
of the
to
con¬
bears
the
any
or
Such
work
performed,
ferred
on
amount
or
overall
an
or
service
benefit
as
con¬
by the Commission in the
process
of
its
activities
of
performed
for
upon
Act
of
the
broker-dealers,
and
conferred
members
eral public in
Exchange
regulation
of
the
is
di¬
whose interests the
was
adopted.
ated
A
or
that
that
we
pense
is
upon
a
CITY
lic
been
running
channels, ap¬
to
subject
out this
and
an
much dis¬
should
power
business
would
which
we
be
within
and
various
Stock
cre¬
tax¬
a
Act of Congress
That
thoroughly that you
points almost 100%.
pay
have
we
be
burdened
possibly being abused, that
something that needs immediate
performed.
have read
created
watch
to
watches
them?
I
much within the past
so
few years of Government
officials,
etc., going astray, Mink-Coat wise
otherwise—that
SEC
yond
can
human
sort, 100%.
on
and/or
don't
work,
its
they
possibilities
are
if
be¬
of
this
Suppose the SEC
been
burdened
inspections by
with
on
are
supervisory
already
1
to
extra
.an
being
payroll
some
and/or
relatives
pals,
who
honest
day's
(Congressmen
had
or
an
applies
acknowledge
express
a
hear¬
ings date is set. in this matter, that
to
likewise have the opportunity
be
heard
in
opposition to this
Yours very
truly,
National Security Traders
Association, Inc.
RUSSELL HASTINGS
President
cc—"The Commercial & Financial
Chronicle"
the
the
not
important thing,
principle
charges
services
to
that
effect,
principle
there
is
which
feel, is the
namely
imposed
means
in
are,
annually
However,
we
involved,
are
regard
This
be
firm
per
such
that
without
rendered.
the
charges
if
and
taxes;
js
be
accepted,
to
the
extent to
subsidiary and
a
the
to
limit
no
this
particularly
salesman.
per
of
members
is
onerous—$50
plus $10
From
should
of taxation
point
your
be
aware,
of view,
think,
we
may
to
Offices
to be
Act of
"It is the
language of Title V
of Congress that
sense
work, service, publication
benefit, privilege, authority, use,
franchise, license, permit, certifi¬
.
cate, registration
of
value
your
.
.
attention
of
to
that
see
brought to the
are
the
Securities
and
such
agency,
being
are
protests
received
in
writing
by
it
until
March 10.
It
is
my
understanding that
Congressman Heller's Subcommit¬
tee
investigating the functions of
the Securities and Exchange Com¬
mission in all probability will look
into this matter, too.
I
shall
be
brought
glad
to
to
the
In addition,
that
see
attention
Subcommittees of the
it
is
the
of
Appropria¬
tion Committees of the Senate and
the House which handle the Inde¬
pendent
Offices
Appropriations
Bill.
Please be assured of my
and
interest
support in this matter.
IRVING
yours,
M.
IVES.
Dear Mr.
Graham:
Your letter of Feb.
18 has
been
received and I note your objection
the proposal of the Securities
to
and
Exchange
Commission
to
license security dealers as author¬
ized under Title V of the Inde¬
pendent Offices Appropriation Act
.
I
shall
im mind
bear your views on this
in our consideration of
.
future
appropriation
Sincerely
bills.
yours,
A. WILLIS ROBERTSON.
.
by
any Federal agency
.
self-sustaining to the full
extent possible,.'land' the head of
each
Federal, agency is " author¬
ized
^-fo prescribe
therefor
•
THOMAS
.
such fee, charge, of price
..
as
.
he
to be fair and
..<
pleased
Exchange Commission. Should you
care
to
write
directly to
this
shall be
shall determine
be
comments
similar thing
furnished
or
utility
or
re¬
of 1952.
follows:
as
your
paid by brokers and dealers.
shall
Sincerely
to impose such charges as
actual
acknowledge
you
it may wish.
The
IThe
Mr., Gra¬
calling atten¬
tion to the proposal by the Securi¬
ties
and
Exchange
Commission
with respect. to fees and charges
Independ¬
Appropriation
(in part) is
by
Graham:
that
which, under the SEC's in¬
terpretation, permits any Federal
agency
response
protesting
and
sions of Title V of the
ent
in
reproduced herewith:
are
This will
un¬
charges
be levied under the provi¬
fees
proposed
,
Graham
cent communication
developed.
equitable/ taking Into
considera¬
Joe
South
,
,
V/1
L.
McAlister
take
LEWIS
Co.,
Greenville,
Carolina
pleasure
:
,
in .voicing
the
following comments in connection
with your very
able editorials
on
Article V (fees and charges of the
sec).;.. *; ;
tion direct and indirect cost to the
;• v
■
;
.
Your editorials cover the sub¬
ject most thoroughly and I shall
Government, value to the recip¬ ;
.
If
.
.
and other pertinent
the
SEC's
extremely
interpretation of the
ferred
seem
broad
powers
then Itfte"
open
facts."
con¬
it by^Title V can be
upon
sustained,
for
way
would
other
every
Gov¬
ernment agency
it liked in
as
proposal.
H.
of
Association
your
views
our
and trust that in the event
we
charges insofar as it
the Stock Exchange
to
business
ient
/
now
any
etc.
wonder
claim
friends
do
I
carry
We gratefully
invitation
was
Commissions
it is proposed that
now
that
Who
charges
and the various bodies listed
to
attention.
to
to the NASD,
State
with duplication of
we
Commission
Exchanges;";
services
power
the
addition
now
schedule of "Fees and
any
by
in
be
expense
Act
carry
That any fee or tax charged to
our
very
The proposed schedule
responsibility be paid out
con¬
articles
utility holding
a
Congress intended
of public funds;
our
and
send
Associations
was
transac¬
ham
I
public
(Va.)
received
Dear Mr.
compa¬
1952
securities
in
that
and
However, with relation to that
the
ex¬
been
appropriations sufficient to
I
so
covered my
and
extra
articles
charges.
you
to
so
have
interest
tions
above and
etc.
an
se¬
Charges."
these
profession which
our
you
you
The
you
decidedly unjustified;
(provided the SEC interpretation
us,
to
of the belief—
are
is upheld). You have taken hold of
the
submit
to
me
delegated
with authority to protect the pub¬
request—Ed.]
SEC
there
taxing
ing' power by
has
gen¬
write
Congress,
dealers, etc. I
turbed
is
upon
on
have
to
any,
assessment, whether viewed
basis.
rectly
which
relation
individually
is
Commission
dis¬
problem
YORK
proposed
wanted to
V, refrain from
imposing
levy so unwarranted, unfair, and
-inequitable. Quite apart from the
Traders
the
and others
are
personal
exactly in the same
ropos
the
"Chronicle"
the Commission in the exercise of
i;he discretion vested in it under
a
instructed
That this would be
DEALER
on
Security
mutually beneficial."
rule, and respectfully requests that
Title
Congress
entire
| Name withheld
Our
"On
which
That
itself.
1
the
a
this
general fund of the Treasury and
not be retained
effect
National
The
assess
companies,
Association Executive Council has
the Commission intended.
7"I
understand
we
I
their busi¬
upon
exorbitant
ness—an
Government, value to the recipi¬
ent,
public
policy
or
interest
served,
tax
the
Maynard
controlled system
...
31,
nies,
and
Mr.
letters
letters
dat¬
ment
fees
Co.,- Incif
(N. Y.) and A. Willis
his
invest¬
of
GRAHAM
against the SEC proposal.
by
Jan.
Ives
to
a
try, registered
$50
employee,
ner,
Russell
to
release
upon
pay¬
of $10 for each
Ex¬
MAYNARD,
Bond
Note:
Robertson
at¬
curities indus¬
Walter
Stock
by him from Senators Irving
M.
to
o n
1952, to
charge
a
Bankers
'Editors
Exchange
a
firm along
per
The
Securities
re¬
of
with
H.
i
your
ed
other
quire
of
President
and
propose
things,
yours,
Exchange Firms
Commission in
Charges
...
.
Sincerely
Association
the
by the Com¬
mission, you
among
clarification
a
V.
has furnished the "Chronicle"
call
No.
you
pos¬
with copies Of replies received
o c c a s
Amend Rules with respect to Fees
during the previous cal¬
endar year.
You must know as
well, that this annual assessment
is paid, and can be paid by the*
Exchange, only by imposing fees
.
.
■
Thursday, Jan. 31, 1952 regarding
Notice of Proposal to Adopt and
...
.
Title
in
proposal
release
SEC's
industry
tention
your
us
the
repercussions
Gentlemen:
change
upon
its members. , So that im¬
of the
Congress that any pact
of
the
assessment
under
work, service,
benefit, privi¬ Section : 31
of
the
Act
falls
lege
license
registration, squarely on the shoulders of Ex¬
or similar
thing of value or utility change members. In this connec¬
performed
granted
or is¬
tion,
your
attention is directed
sued by any Federal agency
to Rule 3S3 adopted by the Board
to or for any person
shall be of Governors of this
Exchange.
self-sustaining to the full extent
"It is perfectly apparent, there¬
possible, and the head of each
fore, that the adoption of a rule
Federal agency is authorized by
such
as
X-15B-7
would
subject
regulation
to prescribe there¬
those members of the Exchange
for such fee
as
he shall dewho are also registered with the
Vtermine
to be fair and equi¬
Commission as brokers or dealers
table, taking into consideration
of
other industries, I take this
W.,
to
Louisville, Ky.
one
have
may
value
will join
you
sibility of obtaining
in
interest
your
affecting
which
upon
pay
sense
.
events
Com¬
of
to
against
THOMAS
Washington 25, D. "C.
In
the
of
ascer¬
proposals, and in addition
wish to consider the
follows:
as
Knowing
mission
425 Second Street, N.
Text
made
clearly
may
Exchange Commission:
letter is reproduced herewith:
securities
on
that
trust
protesting
needs
unequiv¬
charges
relationship
recipient.
We
Re: Title V and the Securities and
of March 5,
behalf of the NSTA. The
on
by March 15
fee based on the
volume
reads
.
the
to
date
Commission,
dollar
any
in
V
provide
some
letter
a
to
Title
WALTER
one
also
of
bear
impose
of
is
evident that
seems
that
fees and charges without re¬
gard to value to the recipient—
Hastings,
pro¬
1934 Act to
It
should
Title V
Offices
1952 as
Crouse & Co., Detroit, has fur¬
nished the "Chronicle" with a
who
this Exchange and every
other registered national securi¬
ties
exchange,
is
required
by
to
Traders
actually or
subject to Federal
language
the
real
are
which
are
tainable
Commission's
in
interpreting
of
the Independent
Appropriation Act of
conferring the right to
Association, Inc.
Editor's Note:
Exchange
action
President,
is patently
unjust,
inequitable.
As you
of the
and
v
situation
ocally
letter
a
other trade associations "call¬
HASTINGS
RUSSELL
H.
sent
/ under date of March 1 to the
heads of a large number of
name,
my
had
he
this
worthy of the attention of
clarification
ing attention to the Securities
know,
Section 31
out.
please.)
an
basis.
of
members
themselves
are
believe that the
Exchange
cerned,
upon
aggregate
an
as
to
him
that
in
businesses
the
Co., New
York City, announced March
assessment,
computed
or
far
chased
the
.
.
relationship
amount of the
individual
kers and Deal¬
if adopted, will
reasonable
no
and
could
thereto
lawyer
that thing up
the
to
broker-dealers
of
amendments
bear
ers.'
McCormick
Congress
of examination of the registration
statements
7-Registration
T.
cost
Editor's Note: Mr. Maynard
is
also
a
partner
of
some
dreamt
when
and
Government of the simple process
Fees
E.
the
for
there
over
think
I
Thursday, March 13, 1952
.
potentially
regulation.
who
we
.
are
all
Exchange
8
it
unfair
both
deemed
be
must
Stock
Firms
watchdog?
one
registration,
or
Are
of
Shear son, Hammill &
en¬
considered
Association
.
herent
and
going to have to petition Congress
for
a
watchdog
to
watch
the
copy
be
industry.
our
MAYNARD
President,
gressional allowances and take the
difference.
and
proportion
it
amongst
whole.
fee
the
and
Bro¬
At the
end of the year the SEC would
just bundle up its outlay vs. Con¬
by the
from taxes paid
"If
4669,
erence
and
public
Act
Release
administration
WALTER
are
more
hired, how would I know?
expense
Treasury
Securities Ex¬
change
the
bear
supposing
and
them),
forcement, and that the cost of
administering and enforcing the
broker-dealer
provisions of the
Act
should
be
borne
by
the
your
set
public
the
by
on
should
their
of
recent
.proposal to adopt rules with re.spect to fees and charges to be
assessed
by the Commission, as
will
carried
enacted
Commission.
Exchange
"This
in trans¬
honest markets
generally.
It
would
seem
not
merely fair and equitable, but a
matter of simple logic, that those
for whose benefit regulations are
is
Following
letter
a
to
and
actions
Exchange
Editor's
insure the maintenance of
and
fair
Curb
President, New York
text
The Commercial and Financial Chronicle
I
tcflgo about as far
justifying the appro¬
not
attempt to enlarge
them
upon
but rather suggest a means of com¬
bating this unconstitutional act.
It is either constitutional
or
it is
not.
Pending a decision by the
Supreme Court, I think that every
securities
dealer
and
every
other
priations whichiit- demands from
organization
Congress by pointing to the rev¬
enues which it produces.
The in¬
the proposed fees only under pro¬
test.
centive which
suph
cle
of
very
We
taxation
"
great.
think
to
that
line of
a
soning provides for
rea¬
vicious cir¬
a
be
created
is
I believe that if
of the
concerted
should
pay
Congress knew
action oi the in¬
dustry, they would think twice be¬
fore allowing the SEC to take the
.
the
affected
dangers in¬
proposed action.
Number 5098
Volume 175
.
.
.
heartedly with the Commission
PAUL I. MORELAND
Detroit, Mich.
Editor's
land
"Chronicle" with
which
of
the
of his
copy
a
one
above all others
of those peculiar people known as
Street, N. W.
PAUL
Gentlemen:
whose
NASD
The
Very truly yours,
be that composed
to
me
politicians,
r
Washington 25, D. C.
to
seems
formed
to
To
Upon first reading of your pro¬
posal
upon
your
registration fees
broker-dealers as outlined in
release of Jan. 31, 1952, my
From
impose
to
reaction
.
was
acts
"insanity
asfflrHRran
pre¬
vails."
1 do,
other actions
watch
as
dog over
of
know
problems
of hundreds of
in
bureaus
trying
Title
V
between
Jit should be re¬
modified.
We - have
ourf representatives and
and • Have had a reply
Now
passed.
pealed
which
or
written
to senators
sion
as
impor¬
the
and
personal well
being of those
work
who
1.
What
However, he merely
SEC for information as
to
intended charges and passed
them back to'us which we already
fraternity.
wrote the
and
was^why
therein. I have
Moreland
had
wrote him
in the first place.
we
merry-go-round!
The
tained (and expressed these views
sad thing is that with distractions
to Congress)
that SEC Commis¬
and costs increasing at such a rate
sioners
and
key employees are
the small firm may be forced out
not adequately paid for the service
of business.
that they perform to the general
economy of the nation and more
LINDLEY JOHNSON, JR.
What
specifically to the some 12,000,000
investors.
I, therefore, do not at
all blame you for your efforts to
somehow gain more income. This
problem,
same
&
Keen
Johnson,
Editor's
Note:
adequate
Co.,
I
1625 K
posal is not honest and equitable.
I am
sure
that Congress meant
standing
or
follows:
Offices
Independent
the
under
Appropriations Act of 1952, fees
and
charges should be imposed
upon
those who receive the bene¬
efforts, namely, the
fits from your
public through Congres¬
sional appropriations from general
taxation
and
transfer taxes; is¬
suers
through the imposition of
specific charges for specific serv¬
ices; broker-dealers through spe¬
cific charges for specific informa¬
tion or photostats or other services
performed, and fees imposed upon
the investing public who are the
general
to
of
general
its members
Objection," headed
"Notice"
from
that
It is our under¬
not
more
the
Division
of
engaged
inspector in
a
irrespective
no
also
that
registration
and
noted
a
franchise
or
ex¬
privilege,
means
instrumentalities
or
in
commerce
the
of
con-,
duct of his business in other than
than 16
Trading
as¬
are
in
this
between
work,
regional office.
the
figures from the
Again, assuming for purposes of
to
broker
-
Commission's
argument, that the
surprise inspection work of brokerdealer firms should be examined
dealers,
as
the
subject of
charge
or
appropriate
an
fee under Title V, what
is the value to the recipient there¬
of?
Here, certainly, the charges
analyses, speeches, etc., which are
proposed cannot be justified on
available if one gets on the Com¬
any basis of
value to the indi¬
mission's mailing list.
But these
vidual recipient. The best evidence
are
also available, as we under¬
of this is Mr. Lund's testimony, as
stand it, to members of the public
contained in the Hearings Before
So,
of what figure we
$455,000 and $780,-
000, and even if we add something
it must be clear that
for overhead,
Commission.
I have seen
constitute
interstate
presently without charge, are the
various releases, opinions, reports,
an'occasional assist from an
take
18
Feb.
dated
came
mention to
or
services rendered gen¬
as
Commission
no such sum is necessary to make
it, against the imposition of
this activity of the
Commission
"Annual Registration Fee for
Brokers and Dealers."
I am fur¬ "self-sustaining," even assuming it
is the subject of an appropriate
ther prompted in my objection by
recently
to the investiga¬
securities
only other services which
can think
of supplied by the
we
by
which
*
■*' $
_
The
any
another
be
dealer
-
vis-a-vis any
other registered broker or dealer.
Registration is available automati¬
cally to any citizen upon applica¬
tion, other than those covered by
contem¬ the fourth paragraph of Section
15(b), and is merely a prerequisite
to a broker-dealer using the mails
erally in the public interest.
of
funds
The number of new
Exchange
with
arousing
"United
a
the
employees
actually
"SEC"
[Pro¬
posed Rule
(4)], impresses me
very unfavorably, and I feel that
the NASD might well consider the
wisdom
payers
considerably fewer than even this
small number of employees are
the
J
broker-
the
signed to this work on this Divi¬
sion's organization chart, and that
1952, page 1
31,
17
and
<
of
"Release"
The
dated Jan.
of
amendments, etc.
Dear Mr. Fulton:'
feel, however, that your pro¬
Act
laws, I should like to
the Chairman of the
registrations per year is relatively
small, and then there are the an¬
nual
filings by
broker-dealers,
Street, N W.,
Washington 6, D. C.
of
most
the Treasury.
Mr. Wallace H. Fulton,
we
with
presently registered have
out
for
furnished the "Chronicle"
a
copy
of his letter of
Feb.
29
to
Wallace
Fulton,
Executive
Director
of
the
have but one solution—
go out of business (as so many
small
broker-dealers
are
being
forced to do with mounting cost).
honest, equitable and
way,
■
"With respect
long since been processed and paid
with
NASD, text of which
an
the
of
connection
in
of
dealers
has
& Co., and
I do not as yet have the answer.
Should I fail to find the answer in
confronting Moreland
activities
the
are
trations
Johnson
Mr.
all
by the
Committee exempt securities.
broker-dealer registrations and fil¬
We find it exceedingly difficult,
that with our present small staff
ings that should be considered in of 72
investigators we are able therefore, in applying the test of
"value to the recipient" to fijadf
any such determination of direct
to handle only matters involving,
and indirect costs to the Govern¬
well really, the broadest public any value whatsoever in brokerment?
It
is our
understanding
dealer registration of the "special
interest." (Underscoring supplied.)
that
broker-dealer
registrations
services" character which we be¬
It would seem clear, therefore,
and supplemental filings in con¬
lieve the Congress had in mind,
that these policing
activities or
nection therewith are processed by
and we think, therefore, that no
"services" of the Commission are
a part of the staff of the Trading
fee or charge is indicated upon the
not the appropriate subject of a
and
Exchange Division
of the
of this standard or
tax or fee only on broker-dealers, application
SEC. Of course, the original regis¬
test.
but should be shared by all tax¬
Philadelphia, Pa.
is
frankly,
very
a
Partner,
Exchange
plates.
Commis¬
"self-sustaining."
than
more
Commission
always Opposed in elections,
have most of the investment
long main¬
Paul
should
clusive
tion of violations of the
have
tance
not
still
presumably
make this activity of the
only
from. Ipne
representative.
them selves Ironically enough he was one we
their
curities
$780,000
and
$455,000
will
t
maintain
and' increase
taken
Condemning SEC Fee Proposals
jjshould have been
never;
be
filings as are
required to keep it up-to-date does
article,
The
to
graphs of that section.
not
"Closing In," which ap¬
in your issue of Feb. 7.
fundamental
point is that
test is controlling in
same
such supplementary
Text oi IBA Memorandum
heartily in accord with
expressed in the
are
and,
Commission under the other para¬
Very truly yours,
LINDLEY JOHNSON, Jr.
supposedly
was
act
Continued from page 10
sentiments
Act
1934
This
It
peared
however,
well
the
We
the
of
clients in their selection of sound
often
are
[Name withheld on request.—Ed.]
the
2
broker
Francisco Dealer
San
a
is clearly recognized in
as
Section
Thus,
the
picture and
to extend its in Section 15(b), the Commission's
authority (if it has any such as rules and regulations with respect
proposed) over those who, despite to applications for registration
the tremendous
uncertainties of must be such as are "necessary e }
the times in which we live, are appropriate in the public interest
doing their best to guide their or for the protection of investors."
President.
MORELAND.
I.
erally,
indeed, Section 15 thereof.
inexplicable.
Commission
such
making
in
thinking
Investment Fraternity.
mind, there is no justification
whatsoever for the SEC to enter
investments.
group
in the land which needs watching
proposal.
I appreciate your invitation and
the
opportunity to submit our
4 to the SEC,
is as follows:
Exchange
Securities and
425 Second
The
a
and
own
my
fearful of the result.
full explanation of your reasons
a
its
squander-minded
they,
themselves,
hold the
money bags), and anybody with
brains in his head ought to be
(if
as
views.
letter of March
text
More-
Mr.
Note:
furnished
has
have it. They are
for
the NASD
which is supported by the indus¬
try and has given ,you valuable
relief and support, are entitled to
well
many years, as
President, Moreland & Co.,
31
(1103)
Chronicle
The Commercial and Financial
charge under Title V.
generally4
request,
so
we
would think that this is a type of
the Subcommittee of the Commit¬
tee
Appropriations,
United
Congress, First
on
States Senate, 82nd
Session, Independent Offices Ap¬
propriations, 1952.
On page 363
well make an appropriate he states that:
charge under Title V to anyone
"We have never been given ade¬
requesting it, and we are rather
quate people to make a coverage
surprised that such a charge was of more than once
in, say, 4 or 4xk
•not imposed in view of the other
years."
proposals made. But however that
On page 368 of the same Hear¬
may be, we are clear that this is
ings, Mr. Lund indicated to Sen¬
service for which the Commission
might
not
an
item of cost which can ap¬
propriately be included in the pro¬
posed
broker-dealer
and filing
presenting its annual budget
to the Congress, the Commission
certainly
during
the past two
upon
hardly think this a special service
to
broker-dealers.
Indeed,
we
In
If
our
registration
fees.
of
Cordon
this
that
there
were,
as
time, 1,688 firms that never
have been inspected.
The
analysis, therefore, of the
applicability
ator
of that
following colloquy on pages
is also very pertinent to
368-369
standard of
the point under discussion:
"direct and indirect cost to the
"Senator Cordon: I would think
has laid great stress on the
Government"
is anywhere near
necessity and importance of its
you would turn aside from your
correct, we think that the proposed
present 1-cent Registration Fee surprise inspection work of bro¬
constant inspection of a few and
direct beneficiaries of the SEC as
required for each $500 worth of ker-dealer firms. We believe this charges for broker-dealer regis¬ take at least one look at those
is the objective of the Acts.
tration
are
grossly
excessive,
stock
sold on
stock exchanges. a useful activity in the interests
that you have never looked at.
I do not subscribe to the tre¬
clearly bear no relation to the costs
It seems probable, however, that
of investors and the public gen¬
"Mr. Lund: We are often in the
of such services, and are there¬
mendous duplication of work and
the figure may well run into the erally, but if there is any thought
fore
neither fair nor equitable, position where we must inspect
efforts that exists in the bureaus
tens of thousands of dollars.
that this work is the appropriate
those where we know
there is
even assuming they are the appro¬
in Washington and of which you
If a
real need exists for in¬ subject of a charge only to brokertrouble.
We often do not get a
are a part, such as your statistical
priate subject of any charge.
dealers under Title V, we respect¬
creased revenues, why not doublechance to go into those that are
work, which is duplicated in part
fully submit that it clearly cannot
up the present fee or impose a
"Value to the Recipient"
large and have a good reputation,
by at least five other bureaus.
be brought within the intent of
like
charge on purchases?
To
and where we have no informa¬
This is a luxury that we cannot
What is the value of brokeradd now to the overhead expenses Congress of charging only for ser¬
tion that they are operating im¬
as a democracy afford nor forever
dealer registration, supplemental
vices to special beneficiaries.
of the
dealer,
who is afflicted
endure.
I know, however, that
properly.
with more than his share of wor¬
filings, the processing thereof, and
That these services are in the
"Senator Cordon: Do you only
your commission is as much a vic¬
broker-dealer inspections to indi¬
ries,
taxes,
rules,
regulations, general public interest and the
tim as a participant and that un¬
inspect on complaint?
vidual recipients? If this "special
audits., permits, fees and so forth, interest of investors, as should be
less and until a general move to¬
"Mr. Lund:
No, sir; but we do
is not conducive to his general obvious, as distinguished from the service" were available only upon
ward efficiency and economy is
have so many complaints, it keeps
request and payment therefor, and
state of health nor peace of mind,
direct interest of the firms inves¬
made, you alone can do very little
We
not mandatory under the law, the us busy on certain houses.
and it might well mean his retire¬
tigated or the special interest of
to eliminate your own expensive
know
through
experience that
ment from the investment busi¬
broker-dealers generally, we answer would be made very clear,
duplication. V
there are probably 100 houses or
and quickly, by the operation of
ness.
Small houses such as that would like only to cite the testi¬
But
in all fairness, logic .and
the law of supply and demand. more that need watching. We keep
one of which I am a partner would
mony of Chairman Cook in sup¬
governmental theory, why should be
Perhaps one good test of this Value a close eye on those, more so than
particularly hard hit.
of the Commission's
revenue
how
show
which
"SEC"
derived
was
much
the
years,
from
-
you
ever even propose
regulated
rather than
ficiaries?
Is
pediency
it
of
political
the
injury
to
rather than the many?
the
so,
few
I
am
because I have
most of the Commissioners
known
of the
If
ex¬
surprised
indeed
past and know two of the
present and many of the staff. My
respect for all has been far above
such a type of political action.
Members
self
are
of
my
firm and
my¬
definitely opposed to your
proposal and further believe that,
responsible broker-dealers, stock
exchanges and industry associa¬
tions who have cooperated whole¬
port
to tax the
the bene¬
There
have "been
far too many
"grabs" by government
its
nalistic supervision over
and business affairs
ican
more
to
to extend
Socialistic theories and pater¬
and
block
it
and
citizen
more
any
the lives
of the Amer¬
is
becoming
necessary
and
every
for
us
further
step in that direction.
on
Jan.
16 of this year
before
the
Co
i 11
m m
House
of
budget
(Hearings
Subcommittee
of
Congress, Second Session, Part I
—Independent Offices Appropria¬
271-272):
"When Chairman McDonald was
here last year he
stressed the im¬
portance
government has yet to be tried.
burden. Too many of our politi¬
cians
seem
obsessed by the smell
of money and
hateful of those who
None
of
our
important if
investors
the
functions
are
more
are to afford the
protections the Se¬
we
we
do
certain
on
of
the
larger
firms,
New York Stock Exchange
though no charge is made for such
registration at present.
on
tions for 1953, pages
in purely
exempt securities which are regis¬
tered with the Commission, even
Appropriations,
Representatives, 82nd
e e
of making regular and
periodic examinations of the ac¬
Lip service and broken promises counts of the 3,900 firms registered
with us as brokers and dealers.
can not reduce our outrageous tax
An honest effort to cut expenses
of
is the number of dealers
the
to believe at the moment they are
As
i
stated
above,
broker-dealer
registration
and
supplementary
filing are part of the regulatory
or policing scheme of activities in
where
have very little reason
we
doing anything seriously wrong.
"Senator
1,688 to
the
ones
a
Cordon:
very
with
Then
this
great extent are
respect to whom
information would indicate
that they are competent, reliable,
securities, markets and primarily
and operating in a legal manner?
the over-the-counter market. They
"Mr. Lund:
That is generally
impose a continuing burden, rather
those subject
scheme, and any
value would seem clearly to inure
to investors and the public gen¬
than
to
a
benefit,
this policing
on
your
true, sir.
They are largely mem¬
They are
bers of stock exchanges.
Continued
on
page
32
32
The Commercial and Financial Chronicle
(1104)
IWvm
M^mlinuea
Txnno
facts set forth above.
£ CXI
I DA
After
_
_
jwf
MamAraViniim
years' stand-
The New York
Slnck
checks them, or
Exchange
of the other stock exchanges
one
necessary."
Also pertinent to the question
of fairness
and
equity of the
We have not felt it
•do.
~
pretty much by the private concerns?
«Mr. Cook: No.
I would say
this, that the private organization,
the NASD (National Association
0f Securities Dealers), and indeed
the New York Stock Exchange,
rfhT recTpilnV-bisSiSth°e£ £&
broker-dealers
covered by the New York office
of the SEC. Taking the Commissituation
those
of
s^LZl
discussed
of
are
a
0f Charges for Services and ProdUcts." In this report the Bureau
0f the Budget states that, for the
past two years, it has been and
that these inspectors were
expect an
firms in this region can
average only
eleven years.
In light of this situation, it is
■exceedingly difficult to see how,
in fairness and equity, the indi-
inspection
the
on
.aDout once every
vidual firms
be asked
can
to pay
for the type of
inspection service performed by
the Commission on the basis of
the fees proposed
mindful of the substantial amount
This would seem clearly
within
not
of .Con-
intent
the
quite apart from the constitutional
question which it
gress,
We think it
Commission to keep in mind
1938)
Session,
Third
Congress,
stated in their Reports:
all
complying with
regula-
ways
Committee
«Tbe
there
are
that
believes
two alternative programs
nounced
expansion of the organi-
tlie law and the rules and
zation
t4ons
change Commission; the multiplication of branch offices; a large
increase in the expenditures of
public funds; an increase in the
problem of avoiding the evils of
of the
Commission, and the
Commission's
irmke
inspector should
inspection,
we
such
would'
think
appropriate
aion
to
but
no
that
might
be
an
for the Commis-
case
impose
lacking
see
an
an
fee
a
charge,
or
such request
any
we
"value to the recipient" as
individual firm or, indeed, any
fairness
JI"®
^
i
of
the
and prod
p
t
.
Securities
policy.
public
following
with
Merely
questions
may
are
which
the
occur
given service
be examined: Is the
respect to
which
illustrative
considerations
these
0f
any
particular service one which is
rendered primarily for the benefit
0f the public at large which ought
to be payable from general taxes,
is
0r
it
a
service
for
the
benefit
and the
and
Ex-
1-
*o
4
T
^,4
Interest Served"
or
bureaucracy; and a minute, deand rigid regulation of
business conduct bylaw. It might
very
well mean expanding the
tailed,
nancial responsibility, professional tion to make possible the increases
conduct, and technical proficiency,
If
anything is clear in this con- The second of these alternative
troversy, it is that the Commis- programs, which the Committee
£ion is supposed to operate in the
believes distinctly preferable to
public interest and the interest of tbe first, is embodied in S. 3255.
investors as distinguished from This program is based upon cothe
interests
special
-dealers
others
or
jurisdiction.
of
broker-
subject
to
tliis
seems necessary
point
with
the
The fact that regulation of bro-
admirably stated by
Cook
during
recent
was
Chairman
liearings before the Subcommittee
-of
the
tions
1953
Committee
of
the
budget,
on
House
on page
"Mr. Cook:
.
.
.
Appropria-
on
k
to belabor
Commission.
the
SEC's
297:
Additionally
in
rates which already appear to
be desirable as a result of the limited evaluation to date and as a
result of the current studies in
selected agencies described.
it is made fully effective.
Specific study of
group
ex
t^oublic ^S
nf
•
A
in^ thfs
and dealers have custody of large
lating
customers.
contribute
most
are
tv,
dealers, and you get another iected
type of situation there
Brokers
and
"Mr.
Yates:
Chairman
year,
As
I
McDonald's
aie
not
remember
in
and
inspecting those who
the
least,
if
»
b
of
♦
be
(Underscoring
prescribe."
r™
as
We know of no policy
promulgated by the Presiwith respect to fees> if any>
suppbed j
«e
/
Congress to the Heads of Federal Agencies,
The federal courts of the United
States have consistently held the
delegation of authority by Congress to administrative officials to
of
absence
sueh poiicy we
provision
of
any
think
this
serv
not establish definite
guides for action by
gress did
standards
as
Title V, in and of itself, control- such administrative officials,
Hng Qn thg Commission on the Schechter v. United States, 295
particular point under discussion. U. S. 495 (1935), holding section 3
Bearing on this point, also, on
Marcb 4 we checked with the
other Principal regulatory agencies subject to Title V (the Interstate Commerce Commission, Fed-
of the National Industrial Recov-
ery Act of June 16, 1933, to be
unconstitutional; Panama Refining
Co. v. Ryan, 293 U. S. 388 (1935),
holding section 9(c) of Title I of
eral Communications Commission, the National Industrial Recovery
Federal Power Commission and Act of June 16, 1933, to be unconFederal Trade Commission) stitutional; Butler v. United States,
?nd f°ur\d that none of them have 78 FJ (2d) 1 (1935), holding taxing
mcreased
eir fees and charges provisions of Agricultural Adjustor Proposed the imposition of ad- ment Act of 1933 to be unconstidltl0nal fees and charges, although tutional; Larabee Flour Mills Co.
they are purportedly authorized so v< Nee, and twenty-three other
to do by Tltfe V»lf he+r ™lsh
,
cases, 12 F. Supp. 395 (1935), hold°ne exception was the Federal ing taxing provisions of the AgriPower Commission, which has in- cultural Adjustment Act of 1933
^
creased the price of its publica- to
be
unconstitutional; Gebelein
delega-
5
g
.
,.
Missouri
s of its power to
^ States District
Jf-7?
in
,
1
Larabee Flour Mills
Iee !
f
baJ 1
Ari~
Adjustment Act of 1933
^P®n
rr<
nrimarilv
ppntinr.6
Un,C°nistltutlona^^ dl
f"
Woi-aS- I Writer.
taxlog power to the
fhS frnrn
rnnrliv Cnnrf ^ of ASriculture. The
fhil
nfTnkPr nZr?" S i
holding that Congress
interest of broker-dea
.
had not prescribed sufficiently
Conclusion and Recommendations Qf:rpfarvSSn?^rS
C£, *i
Tn
of thp above
°f Apiculture could deSDectfuflv submit
ks^ming *i TJlt ah%
°f taxatl0n' stated
pui+nroi
,
a
-
.
flnv
+
u
we
re-
even
Titly
tbat
v
'
d
an
t
unconstitutional
constitute
wjoiative
nower
Rule
to
delegation
«
of
heads
of
the
X-15B-7
are
e
not
Processing
of
a
particular
commodity,.provided Congress sets
be authorized by Congress under "t a ,d®fini^ a"d intelligent
Title V because broker - dealers standard by which the determinasuch
fees
as
were
intended
to
*
-1S t0 be
Thus Congress might levy
-
anything
all
in
finding
fairness
and
policed equity upon the application of this
broker-dealers and their employ-
aba"Man?Pr0Vlde that the
ees, we
.
recommend, in view of the
studies presently being made by
lie es
many
cents
rate
per
bushel as the tide ot areas feet on
rises in
the Bureau o£ the Budget' the di" Trl f'/ed r-day at SOme fixed
"(4) Specific study of fees for rective in Title V that any such Plaee. for Congress has really
sPeciallzed
at a"- We have greatest difficulty
testimony of
those
A
,i
.
amounts of cash and securities of
have jurisdiction over brokers
a
uPon the processing of
'
and might provide that the
a very Pertinent fact, it al- should lead to recommendations within the standards prescribed in fax sha11 be at a rate equal to the
J^0S
w,.b?u. ®aylng mat to the President for the establish- Title V. Accordingly, we recom- difference between the current
? ,e wi ?e nt:le indli9ement to ment 0f uniform policies in each mend that the proposed rule not a^eraSe market price of wheat on
broker-dealers to continue this 0f these fields, to be promulgated be adopted.
the Chicago market on the first of
nnSTh,1,^? J f "i con1?uming; and carried out in a manner simiHowever, if the Commission con- danuary> 1930, and the first of
coonerative
reSStion
lar.t? tll? P°liey on employee eludes to consider further the pos1931- Or Congress might
who
are
Lin/ and n»vino
r^a.ls' ,Th?y "?ay als0 lead to sibility of imposing such fees on Ieyy a tax "Pen the processing of
regulation "
effort
to be sublegislative proposals,
to double taxation
?■
attachment indicates a tentafecLthatthero^./iorwm
ll?t
selected for such
be reimbursed in XTfirrew- mtenS'Ve StU<Jy (eXhibU 9)"
•we
^rm
shall
and subject
of services which are common to
a number of agencies; for examPle' the issuance of Government and their employees are not speHirpp? publications, registration and per- cial beneficiaries of services from made.
mit fees' interest on loans, and the SEC and (2) that the proposed a ta?
testing services. Such studies fees are not "fair and equitable" wneat
with the Government
tio'wprs
branch
^fo^m afoLcticable
proposed
a
aDDro^ate s^eS^on in
sumilementarv
t
<It cannot be questioned that
Con£ress can delegate to the SecFederal agencies
(1) that the nro- retary of Agriculture the adminis«(2) Follow-up with respect to posed registration fees for brokerduty of determining what
the rent policy circular to see that dealers and their employees under fba11 be the rate charged as to
"(3)
It
leers and dealers by the Commisfiion is done solely in the public
interest
^
task will be largely performed by
It is so stated many
times throughout the '34 Act.
Rardly
its
f ih
regulations
.
service, upon comparable prices of licenses to operate radio and
for having similar services per+tvlsl(l£statl0n^ 1°one applicant
formed commercially, or upon rathor than another, permits to
some other standard? Where the construct dams, etc., it^P01^ "P
cost is used for a standard of pricy more sharply the madv^abiling, what elements of costs (direct
a"d inequity of
r.r_r.nc_i
cost, depreciation, overhead, etc.) sl°o ProceedinS wiith 1 s p P
should be included in the compu- a* the present time t°
P
conform to rigid standards of fi- sion to Congress of draft legisla-
public generally.
the
fu?executive
ag
v
,
1"^°^
m
APPENDIX
th*
Tlt e.V of th? JPdePendent Offices
y prfscribing
Appropriation Act of 1952 is
c"" pf agencies in
?• Unconstitutional Delega.
,
in
f10n£;- Otherwise, they appear to jnc v Milbourne, 12 F. Supp. 105
and properly to be paid by those be Slvingtbe prob0935), holding taxing provisions
benefiting? Is it a service the cost %ree.s °* *
p®"™f *of the Agricultural Adjustment
of which should be shared by the ad^f
the nnbVv rpfprrPd Act of 1933 to be unconstitutional;
general taxpayer and by those Budget on over-all policy reterred Vogt y Rothensies, 11 F. Supp
getting particular benefits? If the J°at®b°v®; Zj
^rendered bv 225 (1935)- holding taxing proviGovernment should receive com/
sions of the Agricultural Adjustpensation for rendering the serv' 01
.afer?",f " f /ilp ment Act of 1933 to be unconice, should the return be based
s7eci?1: ^enenciaries^na me stituti0nal.
upon the cost of performing the ^aiue tnere°i,,sucn as xne granting
cnerifip
in rininrm
charging present process of registration of tations?"
tiiis particular group of citizens brokers and dealers with the ComThis report states further (page
for
the police work which the mission to include the proscription 10) that the Budget Bureau is takCommission is required to per- not only of the dishonest, but also ing the following steps:
form in the interest of investors of those unwilling or unable to
"(1) Preparation and submis-
*Rublic Policy
T tie
.
agencies
Federal
for registrations with agencies in
in
equity
and
??d.s
of
be an unconstitutional delegation
nrod" the executive branch, and in the of legislative power when Con-
and
po c^es
already requested such a hearing.
directive to
absolute
heads
the
JerttJJ55&5S to
already*^questeirsauch1a^learfng6
i
;
jine puirpos<e oi
^
ootain
«>
the
of particular individuals or groups
by which this problem (of adeOf course, if any broker-dealer
quate
regulation of over - the ^ould ask the Commission to go counter market)
could be met.
■over its operations to see that it
The first would involve a proin
wit]nout cnargie.
money,
would, squarely raise.
was
rendered to special beneficiaries
and, even more impor- reasonaDiy' equiiaDie trea^
tant, the great amount of volun- similar services renueieu uy
teer
time
and
service, which ^remaijpaiimwub w uu
e
broker-dealers are already conthis reoort
at case
9
the
tributing to so-called cooperative R
f t)ij
R1]dfrpt
admirahlv
self-regulation of the securities
..
.
at
of
tby
business through the various ex- Drobiem.
changes and the National Asso- y (<The gntire subject involves a
ciation of Securities Dealers.
number of basic considerations of
of
Corn-
very
rule, or any other like rule, at propnations Committees of the
least until this Budget Bureau Congress .and endeavor to have
the Commission is ucts wnere h is appropriate, ana would
appropriate for the
that,
.any "value to the recipient.'
It is when the Maloney Act was under
clear
that
this proposal, there- consideration by Congress in 1938,
fore, would amount to a tax on the Senate Banking and Currency
the many large and other houses, Committee, in Senate Report No.
which are not inspected at all, to 1455, and the House Committee on
carry
the cost of the Commis- Interstate and Foreign Commerce,
£>.on's
policing the few on the in House Report No. 2307 (75th
fringe.
is still engaged in a project for
the examination of charges presently made for Government services and products and of services
tion for such
Other Pertinent Facts
are sure
presently studying the
highly inappropriate for the Com- of the securities business and the
promulgate its proposed Commission to go before the Ap-
Commission
the
As
attempting self-regulation on the
part of an association and the
kind of regulation which Congress
tee on Appropriations, House of might determine as appropriate in
Representatives,
82nd Congress, the public interest. . .7' (UnderSecond Session,' Independent Of- scoring supplied.)
fices Appropriations for 1953, on
fincj n0 justification, therepage 271, Mr. Cook indicated that fore> for the proposed fees upon
there are 1,693 registered firms in
applying
this
standard
but
the New York area, that 15 in- rather very compelling arguments
spectors are assigned there, and against them.
We
to
mission to
°' ^ "Sedf
SudgeT * ^
a—of
by Chairman Cook, as contained
in Part 1 of the Hearings Before
the Subcommittee of the Commit-
able to
complete 146 inspections in 1951.
.Assuming no additional inspectors, and the same rate of inspection, it is readily apparent that
fees, if any, to be charged by the
doubtless
designated the SEC to do the po- knows, the Bureau of the Budget,
licing for the public, and there is on
Jan.
28,
1952,
released
a
a
as
other agencies, this to assure a an over-all policy is established,
maximum degree of uniformity This will have the added advanand equity, it would seem to us tage of permitting representatives
"Progress Report on the Review
figures from testimony
own
the President
or
able for the reasons given above
and that the rule should, therefore, not be adopted in any event,
Imposition of Any New Fees by
the SEC Should Be Postponed Pending Completion of
Current Study of This Whole
great deal of difference between
.sion's
the Budget
SEC in light of an over-all policy mission problem under discussion,
to be determined with respect to that the Commission take no furappropriate fees to be charged by ther action on this proposal until
But Congress has
policing work.
apparently awaiting
type within the compass of Title V,
we
think the fees proposed are
obviously neither fair nor equit-
Condemning SEC Fee Proposals
large houses
are
further advice from the Bureau of
Since the Bureau of the Budget
applying these several so-
services
the
ing
tion." (Underscoring supplied.)
'
called standards, therefore, to the is thus at the moment engaged in an over-all policy, and the fact
fees proposed, and assuming that a specific study of appropriate that the Bureau of the Budget is
OI IDA ITIvIHUIwlftllllllft
old houses of many
administrative ac- Title V
test, if it can be called one, to the proposals and
11
jTvm page01
Thursday, March 13, 1952
...
services
in
selected fees shall be as umfornn as pos- fixed
the
rate
(and
the
fix-
^L'E^chaLe Com6' aftL^LeslLn^ /L^preLribe"9 ing °f
mission, and the Weather Bureau,
These
may
the
fact that the
lead to both legislative regulatory
other
agencies
a rate is a legislative
principal power) wh^n it has provided a
covered
by certain,
definite, and intelligible
Volume 175
Number 5098
The Commercial and Financial
Chronicle
:;-sr.
(1105)
standard
by which the rate is to Secretary of Agriculture
of the
or
Federal
agencies
to
consider
k
V
+
an+
c
y
^uirements
f\C°ngr!fS Ca^n0Vd° 1S^° of the President
delegate to an administrative offl- V!Le Secre*fry/wlth th+e a+SpT?l
prior to the date
cial
not
rf e^°
only the
power
■
to fix
taxation according to
but also
^
standard
the
of the adoption of this
amendment,
a
hereby legalized and ratified
a are
"two
feet
long" in the hands of great price rise that
33
set off
was
among the standards "other per- another.
One
man
considering by Korea?
Will the danger of
Unent facts " Under this blanket "value to the recipient", one of inflation return to threaten our
delegation
of
authority
heads of Federal
different
agencies would
find different facts
to
be
"perti-
the standards specified in Title
V,
might well determine such value
to be one sum while another in-
economy and our national
The
to
answer
those
safety?
questions:
the price
will not be given by
telligent man working independtax
controllers,
collectors,
ai**
prescribing ently might well determine that
prescribe the standard and posed under the Act but that the
regulators of the Washington bu^rates, charges or prices.
such value was an
entirely dif- reaucracy.
It
will
depend
on.
r
n?,Vs!v
^ real standard, an amendment operated only proHowever, aside from the fun- ferent sum.
whether our people continue or
intelligible
standard, a
definite spectively to validate the taxes damental
defect
of
permitting
standard. It must be like a yard- from the date of the
Consequently, it appears that the relax the r e m a r k a b 1 e savings
amendment, heads of Federal
agencies to con- delegation, of
stick which is three feet
authority to the achievement of the past 12 months,
long by While
appeals^ from this decision sider "other pertinent facts" and heads of Federal agencies
whomsoever it is used, not one were
by ConThat means, of course, that sav—
pending in the Circuit Court thereby to establish
their
own
gress in Title V of the
which in the hands of one man is of
Independ- ings institutions by their effecAppeals for the 8th Circuit, the
standards, the standards which are ent Offices Appropriation Act of
thiee feet long, in the hands of Supreme
tiveness in promoting thrift will
Court
of
the
United
prescribe
the
power
standard.
to
.
..
not
was
.
effective
Congress actively to validate the
retro-
taxes
lm-
must
.
nent" and would
thereby establish
different standards
in
i
prescribed in Title V
too vague
are
1952
is
an
unconstitutional deleStates, in United States v. Butler, and too uncertain to
constitute gation of legislative
power because
297 U. S. 1 (1936), held that the valid standards
by which adminis- Congress not only fixed insufelastic at the will of the indiAgricultural Adjustment Act was trative officials can
determine the ficiently definite
standards for devidual applying it.
unconstitutional because the tax- amount of any fee, charge or price termining
"The standard provided for in
fees, charges or prices,
ing power could not be employed because those
standards,, in the but Congress delegated to ' the
the Agricultural Adjustment Act by
Congress to enforce regulation language
of
the
United
States heads of Federal
for the fixing of the rate in the of a matter with
agencies authorrespect to which District Court for
the
Western ity to determine what some
of the
processing of any of the commodi- Congress had no authority.)
District of of Missouri in the Lara- standards
should be ("other perties mentioned in the Act does not
Other courts have followed the bee
Case, might well be "three tinent facts") in
determining the
satisfy the requirements here set same principle upon which the feet
long" in the hands of the amount of such
out. To say that the rate shall be decision in the
fees, charges or
Larabee Case was head of one Federal
agency and prices.
"
the
difference
between
X, the based in holding the delegation of
:
current average price of a comtaxing authority to the Secretary
r
,.
,
,
1Q
modity, and Y, the fair exchange of Agriculture under the
Agricul- Continued jrom page lo
■■
value of the commodity, is to
pro- tural Adjustment Act of 1933 to
vide
a
definite and
intelligible be unconstitutional because the
C
I mm TaJhiv'«i
standard only if X and Y are def- standards
prescribed for the SecjJaVlllUS 111 1 OQflV S CiC0110HIV
initely ascertainable amounts. If retary of Agriculture to fix the
&
another two
hands
of
feet
long, and in the
third
a
four
feet
have
lonS>
decisive influence
a
on
our
economy.
The
American
inculcated
by
habit
of
saving,
thrift
our
institu^
_
r
'
either is
variable, uncertain, and
a
(speculative
called
and
term,
standard
certainly
is
then
not
not
is
a
a
the
rate of taxes
For example,
so-
for
standard
definite and
the
the
District
Gebelein, Inc.
Uxed standard.
stated at pp.
"It may be conceded that what
is the average farm price in the
ture
United
because
too indefinite,
were
District
of
v.
Court
Maryland,
Melbourne,
115-117:
supra,
States
of
given
a
com-
the
of
the taxing fea-
Act
it
is
also
involves
invalid
invalid
an
modity, for example, wheat at any delegation of legislative power to
given time, may be determined the Secretary of Agriculture. It is
with
reasonable
certainty from not disputed that, under our conavailable
statistics.
telligent
and
Any
two
in-
stitutional system of
Government,
experienced
men, powers that are truly legislative
statistics, working in- in character may not be delegated
dependently of each other, would by Congress, although administraarrive at essentially the same fig- tive officers or boards
may validly
from
such
But
ure.
said
certainly that cannot be be authorized
concerning the determination
legislation
of
a
exchange value
given agricultural commodity
Such
wheat.
as
"The
act
exchange
therefor
value'
that
modity
with
the
term
'the
as
will
the
power,
declared
are
defines
'fair
price
give the
same
com-
purchasing
respect
with sufficient defi-
mteness by the Congress itself.
*
*
articles factors are stated, but the ascerbuy, as such commodity tainment of one of the governing
had during the base period'. The factors is itself a
complex probbase
period
is defined
(on all lem."
agricultural
commodities
except
Similarly, the Circuit Court of
tobacco) as the pre-war period,
Appeals for the 1st Circuit, in
August, 1909, to July, 1914. It is Butler v. United
States, supra,
scarcely conceivable that anything stated at
page 7:
farmers
could
buy.
be
indefinite and
more
un-
It leaves to the Secretary of
the power to select
Agriculture
the particular time (or whether he
will seek an average)
nm..p„
1]nrlprtakp«;
„„„„
?llirip
f
imnpcp
+p
fnr
lav
in
mil<.+
hp
hv
nnnror
c
asi
gp w
farmers buy
cmlbire
fhl
an
or
tormc
ortinUo
terms of articles
com-
miffM6v^l^etermine^Vat
wfc one
was fjip
tary
in
in
of agncultuial
m. g
fx
cum
sum,
anH
a
t det
annthpr
d another Secre-
mine
that it
was
entirely different sum, greater
less. Each easily could
support
the
rc
ched by statistics.
It
and
absujJd to say that this is a
ly t e use of which
dfcrent applied by difresults are
reached when it
is
ferent individuals.
reasonably definite standard
a
and a r^°j
The odlaiice
•
•
1
pro—
bteween
and consumption of cercommodities, or the equaliz-
•
ducti0n
ta^n
ing of the Purchasing
power between widely separated periods
alone forms no such standard."
Applying the principles of these
cases i0 ^iiie y 0f ^e
Independoffices
ent
1952?
we
Appropriation Act of
submit that Title V is
unconstitutional
an
is
standard
man-
in+^iiitxihil
an
base
period of five years as to
which he will determine the pur-
a
nffWr
follow in carrvine out its
during the
niiQcincr
rinwn
admini^tratTvP
an
iegisiative
^
heads
TiUe
eacb
y
power
of
"such
delegation
of
by Congress to
Federal
auth0rizes
pederai
agencies,
the head of
agency
fee, charge,
to prescribe
price, if any,
he shall determine,
to be
"The courts have gone far in
as
upholding legislation by Congress fair
which
has
been
challenged
the ground that it involved
a
or
....
and
equitable taking into
con-
upon
sideration direct and indirect cost
dele-
to
the
Government, value to the
gation of legislative power. But
recipient, public policy or interest
they have never even distantly
served, and other pertinent facts",
approached approval of such legislation
as
this when challenged on
that ground."
This
(It should be noted, in passing,
delegation
of
authority by
Congress in Title V is obviously
more
A
Board
defective than the delegation
raise
to
its
rate
ceiling.
position to
a
refusal
to
A final
and
decisive
event
raise
been
was
'
Monumentally Stupid
Thig
in
iece
estimation
ate
was
the
t
of
congress
worthy
tax-happy'Federal
the present
ministrati0n.
1T1,,+11Ql
,
anH
hictnrv
PnPfmro«w
V
.
d
•
with
in
nnr
inn?
n
rrmntrv
npnnlp
to
independent
to
P
Hf
get ahead in lite.
to
'
altogether cause
that ProvidinS for hard times is
an
obsolete precaution.
mined,
and made effective by the proclamations and
certificates of the
in
the
hands of the administrative officials to whom authority is delegated
by
permitting
heads
of
the
banking
the
a
com-
old
change was be2% figure had
rates
pui
could ad°Pf va"
1+
+,
.
.f
trusted
with
half
a
,
a
undivided profits, and reserves of
12% will have to pay a 52% tax
on aB future earnings after dividends. Other institutions, youngwell managed,
that have smaller surplusses will
be tempted by the law to pay out
maximum
dividends
and
avoid
ter managed banks and
without
unsound
free bank-
numbered.
y/e ought all to have learned a
jesson from the experiences of the
'20s
when
banks
to
terest
for
competition
led
bankers
higher
loans
in-
reach
to
of
a premium
it
If
a
time
of
scheduled
undistributed
earn-
It
high
promises
to
be
a
aggregate
savings.
Government defense spending, in
spite of the new stretchout, is
to
an
rise
by
$24
billion
rate
to
annual
of
$60
billion.
Expenditure
plans of American
industry for plant and equipment
this
year
breaking
add
$21
to
up
billion.
_
alone insure
level
of
a
a
record-
These fac-
high and
ris-
income.
ings of savings institutions great-
ly
are
strengthened
the
on
dividend rates.
a
case
of
the
higher ceiling
its
to
by Texas
Corp.
of
stockholders.
common
entitle
warrants
the
The*
c o m m o n.
stockholders the
primary right to
subscribe for the
new
stock at $1T
one share
held at the close
share at the rate of
per
for eight shares
0f business
March 7, 1952, with
on
the additional right to subscribe at
the
price,
subject to
allot-
ment, for shares not taken
under
same
almost certain to set
cords
year
in
stock
mon
1952.
that brings
But
a
will
new
it
re-
be
a
renewal of the
in
with
connection
expansion program which
its
is de-
gigned to increase Texas Eastern's
peak
dehvery
day
capacity
of
na^urai gas by approximately 475
miixi0n cubic feet.
The expansion.
pleted in tbe third quarter of 1952
and
of
development
the
under-
ground natural gas storage facili-
Western
in
Pennsylvania
which will be placed in full operati(m
1956
by
rru.
r*inpiinp<3
x
will
Mice
^ro!|n
...
tke
LL
hpPn if
line to the
a+
esti-
itc
31
Dec
exnansion
win
1051
t
J?jon
nat„ra]
and
owns
nineline
+ran<.mj
ODer-
for
svstem
and
the
sale at wholesale
suonlving
gas
cus-
^Louisiana CssoLi
lin
•
Tndiana
'N
d
T
th
Jersev
and
Coast
Gulf
^
West
New
Jersey
system owned
to
area
inciudes the
h
d Little Big Inch
the
For
wag
ended
r
total
1951
operating
$84 14g 323
g9
Y '
^
and
New
so-called
°
wer^
II-
Vir-
extends from the
companv
Texas
m
Ohio
'pPnnsvlvana
Y L Th^
•
be
n00
tp??;? Eastern
f
Pnn-
Eastern
cost
pnmniptir.^
nrnfJram
$
'tbp
that
.q-,
main
Texas
area
matp?
pxtpnA
tn
'
p
wpL fr'om
g
•
be such
for thrift
may
temptation
institutions.
of
year
Production,
employment, and national income
savings banks for
a
610,937 additional shares of comstock, par value $7 per share^
there
'
current
bankers who believed that their
competitive position would be improved if savings institutions were
on
offering
an
Transmission
tendency to repeat that
sharply.
The
year
tax
*
pMfl fiMUVfi
mon
out
risky
more
investments.
a
among
rates
yielding,
and
develops
high
pay
less sound practices.
Among the eager advocates of
the tax were some commercial
upon
derwriting
Eastern
cent
per
forever the accumulation of suf- experience, it is to be hoped that
ficient surplus to make them sub- the banking authorities will check
ject to tax. Thus the law puts a
penalty on the stronger and bet-
■
of investment bankers un-
group
ties
,
and destructive competition, then,
by S°cd management and hard indeed, the days of the
work have accumulated surplus, ing system were surely
er» or perhaps less
rainer
£ 3 ceibng be"eatb
Moreover, the tax will work in jeeway on interest rates
a wholly unsound and unfair way.
piunging into an orgy of
Those established institutions that
■■■
IflllUMj I1GCIU Wl uwp
competition,
.
,
I
Dillon, Read & Co. Inc. heads
at
ine^ommunltv could^not311^
ng community could
not
be
ing
standards
trust
crisis of the 30's showed that 12% dvoia iixing
in surPlus accounts is none too s ®.u d
v?
much to meet the emergencies of
hard times. I am not convinced
y g
52%
cf the
not
■
■■
IlillftRt
depositors,
and
strenuous
the savings in these institu- why I favored
in
mination
of
must
we
tors
this Title, as deterprescribed,
proclaimed,
income,
Ol
.
Offf!!* UndfirWIlttGII fcW
to
.^e earnings not Pald. ou* "J munity to handle the increased
dlvldends. are used to 11?cr^a^
,e
ai?d responsibility infurpl"s and reserves so as to pro- volved in this move. One reason
Here in New York that attitude
has boomeranged,
for the new
under
.
in
,.
me
r
TGX3S E3St6NI StOCK
commercial bankers, seemed the primary rights. The warrants
to feel that this danSer was so expire at 4 p.m., Eastern Standard
great, tbat ,tbe Banking Board Time, March 26, 1952.
not^° have cban?ed ^ regTexas Eastern will use the proulation. My own feeling is that
d
of th
sale of the new com_
too vague and uncertain, but
Title V is fundamentally defective
posed
_
based on interest rates. Some of
^ ^ood friends, especially among
not only contains standards which
effect, leaves deter-
tion.
52%1 recognize, nevertheless, that
the raising of the dividend ceiling
has opened the way for a further
also held that
that it, in
their
round
and
nonnrofit
RttiP
begor£e
t
gaye
ad-
savins
are
incH+ntinnc
11Qpf„i
of
-
hnnkc
a^nHatinns
f
a
monumental stupidity on
subjected to the Federal corporate
income tax. To my way of thinking, this was a shortsighted view,
are
tantamount
over-
the threat of inflation,
dustry, they will, I know, play
role ably and with distinc-
it should be, at rates appropri-
as
Tax-Happiness
of authority in the Agricultural
Adjustment Act because Title V
subsequent amendment to the Agricultural Adjustment Act
by Congress in 1935,
providing that "The taxes im-
were
hope of
of
mo-
that
by the Banking Board
the ceiling would have
it will be taxed to the
that the Court in the Larabee Case
a
state
best
times
at this
us
great tradition of the savings in-
higher dividends.
pay
earliest
The men and women who guide
the savings banks, savings and
loan associations, and other savings institutions in the country
have today, more than ever before, a vital role to play in our
national life. In keeping with the
drawing' a
the actjon 0f Congress last year in huSe draft for millions of dollars
making undistributed earnings of uP°n the savings of many thrifty
cavingg institutions subject
for People in favor of the U. S. TreasJhe first time t Federal income UIY- By allowing some of that
tax at the rate of 52%
money to be paid out in dividends,
tions. It seems to
„
conse-
Banking
*
to
The
the
one
our
comng
for myself, the tax
factor clinched the
argument. The
facts were that nearly all of the
savings banks of the
ca,7;ntyc:
"The mathematical problem may
be simple when the determining
banks.
from
Republic, offers
ment
Speaking
qUence, of course,
was
pressure
from the savings banks for the
by
Congress,
where standards for action, based
on
appropriate findings of fact,
of what is the fair
savings
to execute in detail
enacted
*
■
ferential between themselves and
in
-
"In my opinion
{
banks set out to eliminate the dif-
tions
our
pipe-.
Dec
31,
revenues
inc0me
net
143
'
\Yith Hornblower & Weeks
FTNXNrTAL
^®PT^^
chronicle)
-plwa
T11
n
tt™-
CHICAGO, 111.—Richard o. rornoff
has
become
Hornblower
&
La Salle Street.
amnatea
Weeks
134
wirn
boutfi
He was previoi s~
ly with Lamson Bros. &
0.
34
(1106)
The Commercial and Financial Chronicle
Geo. C. Lane Adds
(Special
to
The
securities held from
time
to time
subject to the judgment of
the management.
Chronicle)
,
Mutual Funds
NEW
HAVEN, Conn. — John
W. Boynton has become affiliated
Thursday, March 13, 1952
.
financial
in
field
the
.
.
13
years
Fund's
By ROBERT R. RICH
menting
Gordon Graves Adds
(Special
to
The
Financial
with Gordon Graves &
land
Assets Put
A
at
Ten Million
investment
which will offer pros¬
pective investors the opportunity to invest in the indus¬
tries of Canada's dynamic and expanding economy, is said
to have 800,000 shares in registration process with the
Securities and Exchange Commission, "The Chronicle"
learned exclusively late Wednesday afternoon.
Reliable sources reported that this new mutual fund
new
company,
as a closed-end company in order to
stabilize and facilitate the initial stock flotation of 800,000
investment dealer,
or
being registered
shares, at
from
from
research
120
securities
price rumored to be approximately $13.
It
fund will open-end after the initial offering is
is said the
This
&
method of
new
lion to start.
BROADWAY, NEW YORK 5, N. Y.
'4?
with Dominick
The
&
1:00
p.m.,
a
share,
pay¬
March 15, 1952.
80th Consecutive Quarterly Dividend
CASHION
& HOWARD
OPINION
Committee
pany
Association
the
Securities
Staff have
he
not
record
1:00
at
p.m.,
82nd Consecutive
24 Federal
Street, Boston, Massachusetts
National
Dealers
Exchange
and
been
resumed,
source
declared
the
basis
in
an
as
fact
for
current
news
stories
reporting
meetings between the two groups.
March 15, 1952.
Quarterly Dividend
denied
the
of
Securities
of
authoritative
STOCK FUND
Trustees have declared a dividend of
fifteen cents ($.15) a share, payable
March
25, 1952 to shareholders of
discussions
between the full Investment Com¬
and
EATON
a
dividend of
able March 25, 1952 to shareholders of
record at
Although
and
the
both
staff
SEC
are
the problem of the role
of mutual fund retail
scope
advertising
are
the
Committee
NASD
studying
and
although
and
informal
now
there
discussions
group,
Nation-Wide
SECURITIES COMPANY, INC.
full-fledged
a
reportedly
in
not
meeting
is
weeks, and no early solu¬
tion to the advertising problem is
foreseen.
A
Mutual Investment Fund
BILL
into
the
York to
in
HAS
State
of
the
banks.
a
free prospectus writ#
may
in
shares
"stocks
or
of
o*:
other
CALVIN BULLOCK
than
or
Established 1894
such
stock
.
in¬
pro¬
.
shares,
shares
or
are
investment
to
be
re¬
company
owned
by
are
savings
banks and that such
company may
One Wall Street
New York
invest
as
only
in
such
share down
a
to
level
a
more
appealing to prospective investors
within
and
the
usual
price range
of shares of open-end
companies."
share is
investment
Current
the
Fund
henceforth
and
tive,
tate
as
to
complete
tential
is
Inc.,
had
also
by
year-end
of
management
the
to
listed
dam
Exchange
be
Certificates
$1,-
This
type.
second
open-end.
the Amster¬
on
the other
—
being
representing shares
of
THE
FORMATION
division
of
a
special
employers in
assist
to
Philadelphia
foreign purchasers by the Ad-
will
Fund
be
issued
ministratiekantoor
"Interland"
N'.
V.,
subsidiary
of
Amsterdam,
Labouchere
the
in
area
Chemical
to
309,000.
establishment of employee retire¬
ment plans was announced Mon¬
actual
Co.
&
shares
The
Chemical
of
V.
Fund
N.
underlying the Dutch Certificates
be deposited in the name of
day, March 10, by F. P. Ristine &
Co., the New York Stock Ex¬ Administratiekantoor "Interland"
change firm which'this .year is and held on behalf of foreign in¬
price
per
investments
celebrating, its 50th
'William A.
the
vestors
anniversary.
by the Guaranty Trust
Company in New York City.
Stinsoh, Manager of
investment
film's
research
THE
department for the (past 18 years
and Manager of thq mutual fund
department,
the
was.
to
named
head
Mr. Stinson,
division.
new
resident of Haddonpeld,
a
of
N. J.,
is
the
instructor
of
Business
University
Finance
which he has
and a Master's in
The.
sion is
ties
from
as
Two
other funds
have
arrangements
for
split—Texas
is
to
be
Roe &
Fund
split
3-for-l
Farnham
pleted
on
3-for-l
a
on
recently
stock-
a
30
March
and
Stein,
Feb. 20
com¬
split.
of
I
ings
on
under such
cording
can
4 to
amend the
to
of
to
be
of
|$|
F.
P.
Articles of Incor¬
permit investment- in
stocks
well
as
in
as
bonds and preferred stocks, and to
workers
as
and
defense
available
its
to
sav-^
f u nder
employees
year-end assets
of
$3,210,000 was organized by
Murphey Favre, Inc. in 1939 and
while
originally % established
largely for distribution to the in-,
vestment firm's
Pacific
under
the
direction
chasing
be
v
out
the
the
time
same
the
clients in the
through
its direct service to
ployers
to
now
reside in 23 states and several for¬
the most
time
be
di¬
opposing
two
and
democ¬
of the dollar may
through the owner¬
power
participate in
OPEN-END4 REPORTS
to5 the
Mr.
Fund
the
at
15th
an
Declaration
of
annual
amendment
Trust
per¬
mitting fractional share interests.
George Putnam, Chairman of the
Trustees, stated, "As a result of
this amendment, the management
firm
expects to offer to investors in the
near
em¬
one
i
meeting approved
Co., and at
enables
a
to
SHAREHOLDERS of The George
investment facili¬
ties of F. P. Ristine &
into
capitalism
effected
Putnam
Stinson, the statement concluded,
rounds
at
seems
ship of common stocks of Our in¬
dustrial corporations."
the
of
holders
own
Northwest,
sion
industry
world
Communism and a Statecontrolled
economy.
A partial
hedge against the declining pur^
change the name of the Fund to existing and high income tax.
Composite Bond and Stock Fund.
The new retirement plans divi¬
This Fund with
step
the base of ownership
itself
of
camps
corporatioii
$
significant
a
program,
Another is the.tax
expands.
ings
the
the
Sav¬
racy vs.
have
£to
that
Employees
improving employees'
American
viding
ac¬
Ristine & Co.,
expected
the
man¬
goodwill,"' said
Mr.
Simonson.
plan is timely since it tends
the
Composite
Bond and Preferred Stock Fund, widest degree of 4ccePtance
in
one
of
two
mutual
investment the Philadelphia area during the
next two years.
funds
There are many
sponsored
by
Murphey
Favre of Spokane, Wash., voted at reasons for this, the firm pointed
One is the competition for
their annual meeting held March out.
SHAREHOLDERS
is
in
Wiheia the
Employee retirement plans,
and
feel
observers
to broaden
investment problems
plans.
in¬
"The
for
emphasis
underwriters
Plan
forward
advisory
an
Inc.,
now
Research. Corporation,
-"Many
employe^s pn all phases
retirement plan&pvith special
source
Co.
stock
common
Socony-Vacuum
to be established by an investment
Century has about 750,000 shares
firm in the
Philadelphia area. It
outstanding at present.
will
function
made
Oil
plan,
Stock
agers of the fund.
Economics.
of the first of its kind
one
&
sponsors,
retirement: plan divi¬
new
list1
Series, a
fund,
according to Henry J. Simonson,
Jr., President of National Securi¬
B.S| in Economics
a
savings
National
$36,000,000
the
of
of Pennsylvania
its
cludes
Wharton School
the
and
published
Socony-Vacuum
under
widely
known
throughout
Soutn Jersey area ais a lecturer on
financial topics.
He is a former
of
RECENTLY
determining
the
eligibility
of
investment, funds
that
may be purchased by employees
mutual
future
a
of savings plan.
important! developments
to
program
modern
periodic
This is part of our
encourage
thrift, not
eligible for savings banks." eign countries.
are
CENTURY SHARES Trust is
veying
its
amendment
stockholders
the
to
For the first nine years invest¬
sur¬
on
an
declaration
of
trust in order to clear the
way for
3-for-l split.
a
The
Fund,
ment,
in its proxy state¬
"The
resulting re¬
said,
ments
were
only.
In
were
restricted
1948
to
preferred
bonds
stocks
made
eligible investments
with approval of stock¬
holders, the Fund may invest in
and
Fundamental Investors, Inc*
now,
Iffy
all classes of securities,
The pro¬
portions of the various classes of
^Manhattan Bond Fund, Inc.
'
)' ''
MUTUAL
All
v
,
Bond
A
Prospectus
from
The
Company
may.
be obtained
investment dealers
Parker
&
quarterly unless otherwise
of
Boston
Howard
or
Corporation
From
Balanced
Stock
Keystone
Berkeley St., Boston, Mass.
•FOUNDED
Si
1925
Stock
&
Street
4-
1
}
'•
r
•
' :':
4-15
3-31
■
fer-ji
d "
;
■
MX}'-
Diversified Common Stock Fund
5c
9c
3-21
2-29
30c
3-15.C
2-29
3-15
3-
15C
4-21
3-31
4c
.
B-4
3-31
3-14
3-20
3-11
PROSPECTUSES
AVAILABLE ON THESE
48 Watt Street
4
MUTUAL
FUNDS
5
Common
& Clark Fund
Investment
s.
3-14
17c
Fund
Clark
■
I
v
Fund
Scudder, Stevens
State
3-15
25c
Investors
Scudder, Stevens
3-15
3-25
12c
Fund
Republic
'
Diversified Preferred Stock Fund
IM
i
__
200
3-25
15c
Fund
Putnam
Fund
I#.-: '
3-17
18c
Custodian
•*/>
J
'
3-17
3-26
25c
Fund.
Fund
Capital Gains
Selective Fund___
Pioneer
Holders
Of Record
3-27
30c
1951
Investors
noted
Payable
* V'-"
;'.i
L;; A y ■ :'
^Diversified Investment Fund
13c
Trust
Howard
l Wf'- "'V*
.
When
Semi-annual
Investment Co. of America,.
Investors Management Fund.
Diversified
Investment
&
Eaton
are
ANNOUNCEMENTS
•
Shares
Eaton
listings
DIVIDEND
Per Share
Fund
Century
FUND
.
*und~
•
Electronics Fund.
Television
Favre,
assets
American
companies
represents
and
sponsored
Murphey
for
investment
fund
Fund, which places
investment emphasis on common
and
the
of
Composite
stocks
Chemical
by Dutch and other
market
open-end
shareholders."
distributed
of
purchase
shares
European investors, and may con¬
stitute in due course a large po--
function
more
a
Exchange."
March 19.
will; facili¬
on
development
the
Fund
well-rounded, yet conserva¬
investment program for its
40.
now over
common
quired by law to qualify directors,
of
of
poration
ari
vestment
company
vided all of the stock and
.
investment dealer
more
bility in the distribution of shares
trust by bringing the price
of
in part that
invest funds
says
permit
share
flexi¬
per
of the
This
investment
savings
bill, No. 2773,
savings banks
jour
New
of
banking law,
the
to
introduced
Senate
amend
relation
funds
been
liquidating value
is expected to
for
prospect
several
A
duced
be¬
tween individual members of each
For
as
well-established firm in the mutual funds
field. The sales charge on the offering price, after the
fund is open-ended, will be about 7%.
BALANCED FUND
twenty-five cents ($.25)
Dominick
co-manager.
mutual fund will be under the investment
new
management of
EATON & HOWARD
permit
Stock
will
Although the statement could not be confirmed before
press time, it is said that Kidder, Peabody will head the
underwriting group of hundreds of investment dealers,
a
This
lifting of former re¬
limiting investments to
specific types of securities should
listing of,
Fund on
of Chemical
Trading will begin
changed;
however,
the
starting a mutual fund should
give it the advantage of total net assets of over $10 mil¬
corporation
Trustees have declared
Amsterdam
being
a
completed.
National
the
not
aie
strictions
is
your
shares
range
Co., Shore-
upon request
the
on this change of invest¬
policy.
"The basic longinvestment objectives of the
Fund
Building.
Prospectus
announced Marcn 12 the
ment
Industry May Have New Fund;
Chronicle)
MIAMI, Fla. — George F. A.
MacKay
has
become
affiliated
recent
years.
of the F. EBERSTADT & Co., managers
and distributors of Chemical Fund,,
operation
emphasis
has
Labouchere
&
Co.
N.
V..
been placed- on stability," said R. and
M. Williams, President, in com¬ Bankers of Amsterdam, Holland,
"During
with
George C. Lane & Co., Inc.,
70 College Street.
.
the
in
will be
Financial
.
40c
3-20
3-11
45C
4-15
3.31
Hugh W. Long
.New York 5
and
Company
Incorporated
New York
Chicago
Los Angeles
Volume 175
Number 5098
.
.
The Commercial and Financial Chronicle
.
(1107)
only
by
providing
investment
factory
reward
medium
a
which
offers
for
of
satis¬
a
saving,
but
also by having a plan that makes
it relatively
easy for investors to
invest small or large amounts of
in
money
the
Fund
on
regular
a
basis."
Mr.
Putnam
the
total
that
$53
is
is
In
his
Mr.
since
of
Office
1936.
Mutual
riodic
Sales
Department
company's sales
The
Fund
shares
Investment
accumulation
at
of
excess
a
high of
new
to
SEC
leaning
the
Mutual
Fund
$27 mil¬
over
meeting
the
statement
Exchange
shares
on
Feb.
with
the
Commission
of
capital
26
the conservative side these
in their investment
policies.
He emphasized,
days
,"1'
a
regis¬
Securities
covering
stock
to
market.
offered
be
filed
a
300,000
TRUST
through
of
registration
shares
of
Boston
Vance,
Continued from page 12
Feb.
on
statement
covering
interest.
Un¬
beneficial
Stressing Income
derwriter. is Securities Company of Massa¬
chusetts.
INSURANCE SECURITIES,
March
on
7
filed
a
Plan
Series
U
No
Single
10,000
Plan
Calif.,
From Mutual Funds
statement
Pay¬
units
Series
E,
of
arial tables indicate in
his
10
underwriter.
MASSACHUSETTS
Boston,
$1,000
and
Accumulative
year.
Oakland,
registration
covering 6,750 units of
March
and
statement
T»onofjciai
at
market
,
0
28
150,000
offered
at
:'
remaining life
INVESTORS
7
filed
covering
interest.
a
registration
892,024
shares
Underwriter
is
of
SHARES
registration
shares
of
SCUDDER,
Trust
on
statement
capital
stock
March
3
covering
(par
$1)
Stock
Fund, Boston,
tration
cf
STEVENS
statement
capital
Bullock Chart Stresses
stock.
Clark
March
7
Common
filed
78,480
a
her
or
value of mutual fund
summary
shares
over
ies will
regis¬
71%
shares
"What's your age?
more
and
Importance
to).
then
a
woman
That
working
your
the same, or higher. 'If we
reasonably assume that the
income experience over a
period
er,
actuar¬
gives
of
you're
you'll
pay
offset
or
partially
lower capital value, aren't
a
funds worth owning?
tiil you're 65,
have to draw on
years
savings to
will
years
offset
20
you
or
can
bet that you'll live to be
(75 % if its
talking
underwriter.
a
the
Forty-five? The insurance
&
covering
No
of
interest getter.
Vance,
Sanders.
A
span.
given period of time, as comT
facts, showing other pared with their
original cost to
related facts as
well, is a sure-fire the buyer. The value can be low¬
table
Trust,
.
a
200,000
filed
man¬
toward
more
he
ment
REGISTRATIONS
BULLOCK FUND
filed
the
that
for
Plans
of
to
Sanders.
INVESTMENT
$1,200
CENTURY
said
Pe¬
during 1951.
tration
18,000.
is
lion
with
of $5,500,000
Number of share¬
remarks
Putnam
agement
the
and
growth
gain
a
now
than
in
now
year ago.
holders
more
to
steady
continuing,
assets
million,
a
reported
the
fund
net
over
Home
shares amounted to
meeting
of
Investors Corporation. Mr. Bene¬
dick has been in charge of the
35
Because the
possibilities remaining
only two
living in the way of over-all investment
your
however, that- a'
high-grade bonds was
not, in their opinion, the answer,
costs for the
to the
you'll reach age 77, so you some simple arithmetical
tables,
really need to plan to live for 12 to bring home to
people the con-«
years on your savings —
tribution that income can make
maybe
retreat into
But
live
Mr. Putnam
suggested that the
solution might be found in mak¬
servative
tion,
section
the
to
more
In this
groups.
meeting
drugs
con¬
security
that since the first of the
year, the
had invested over $800,000
in insurance stocks.
"; >
of
$3,361,601
Is
March
on
a
year
of
$29.11
standing
$27.12
Per
ago.
value
share
outstanding
total
shares
with
&
net
per
10,
share
outstanding
on
there
65.
a
wife, both
$1,440
000
costs.
A
4%
investment
Let's
$150.
will
That
much.
But
$200
that
suppose
investment
return
is
some
doesn't
a
the
3%^%t
sound
of 40
man
year.
year
only
pay
$5,-
on
per
like
invest
can
$5,000 and then buy close to $15,000 of 10-year term life insurance
with the $150 annual return on his
the
investment
shrinks below his cost, his
family
is better off than would have
been
the
had you not talked about
case
the
arithmetic
of
income
to
regrettably deceased father.
the
Y
espe¬
lawyers,
and
accountants,
others
Why wouldn't
about
Facts of
inflation.
more
people aren't covered,
Professionals like doc¬
know.
tors,
have
we
some
you
•
Mutual Fund Notes
That's
cially if
that
at
worker and
a
Obiviously, it's nob enough,
649,that
.
>
seriously investment.
more
year.
neers
outstanding
.
a
per
519
.
a
approach
$120
over
And
shares
anything
month for
of
date. This compares with total net
assets of $35,523,887 a
year ago,
equal to $57.25. per share on 620,-
time..
to
good,
If you are
encouraged to set up
ance
unbecoming for
The maximum benefits
payable
under Social
Security are
1952,
on
seem
ther.
Clark
assets
March
on
equal to $57.80
825
out¬
compared
on
STEVENS
icports
$37,560,784
asset
65,400 shares
March 10, 1951.
on
SCUDDER,
net
155,476
developed."
salesman
be
toward better living now or
later',
don't fail to take a look at insur¬
miracle
new
then
If anything happens
to him before age
50, his family
enjoy has
$15,000 of extra insurance paid
it?
See how all of this leads
log¬ for by a reasonable return
on an
ically to a better return on ac¬
investment and the family will
cumulated savings.
Let me pur¬ still have the
investment. Even if
sue the
subject of arithmetic fur¬ the
value
of
$1,773,668
share
on
shares,
per
Fund
assets of
more
would
excellent.
or
you
desired by people than a
ripe old
age and the wherewithal to
10, which is approximately double
their total net
experience
years.
if
ous can you be with a
prospective
customer?" You know the answer.
SCUDDER, STEVENS
&
Clark
Common Stock Fund reports total
assets
that
prospect or a customer with that
kind of arithmetic?
I
don't be¬
lieve it is. Some of
you may be
saying to yourselves, "How seri¬
Fund
net
any
are
Does it
connec¬
infoimed
was
shows
65, the actuaries will
age
if
more
ing certain shifts within the Com¬
Stock
to
remaining 6 %
table
bet
prudently minded trustee's
problem under, present conditions.
mon
the
Social
engi¬
excluded.
are
table of the facts
a
There
want
is
to
Expectancy
additional
present
brought
news
Life
one
to* you.
forcibly
report
to
idea
It
mind
by
months
some
I
was
a
ago
about the arrest of
vagrancy of a
Security payments very decrepit,
very old man. This
working tools? fellow had
been
a
millionaire
fit into your kit of
>
People
interested
in
Security
are
pays
those
Chinatown, is at 197 Worth
Street
when he was 50.
He quit work,
they're not covered figured how much he'd need
per
Social
Security.
Perhaps year to live on, using both prin¬
they
have
a
morbid
curiosity cipal and income, and gave the
about what they're
missing. Esti¬ rest of his money to charity. When
mating
the
difference
between he was
arrested; he claimed he
what
under
Fred¬
what
CHINATOWN
in
the sale of
office
specializing
mutual
fund
facts
shares
has
been opened by S. B. Cantor
Co., 79 Wall Street. The new of¬
fice,
the heart of
in
New
the
management
erick Chow.
York's
of
Social
live
it
i
-
;
STEIN,
under
HOE
Farnham
Fund,
fo_
391.
The
removed
an
That's
for
of $i,o06,51,470 were
registration
on
DIVERSIFIED
registration
FUNDS,
under
statement
effective
$24,625,630. The remain¬
67,211 shares were removed
its
PROGRESS
Vice-President
Thomas,
President
of
retired
a
promise
you
return
in
can
a
where
much
tion
that
ings
can
a
better
return
Needless to state,
is
month, scratched the surface
more.
plan¬
years or more,
ac¬
the
same
arithmetic
shows that at 4%, the income on a
for
you
on
sav¬
make for those years.
capital
cumulate,
I've
barely-
in
sketching
of the applications
some
of arithmetic to the sale of mutual
The people you deal with
funds.
are
of all
cial
means
ages, of varying finan¬
and with differing per¬
sonal
plans and problems.
Yet
$10,000 investment would amount every one of them is
likely to
to $8,000 at the end of 20
years. learn something useful from one
First
is
without
compounding,
taxes
take
the
on
into
the
benefits
which
help
income.
account
It
the
impressive
does
arithmetic.
those
pose
FUND, Inc
figures another
a
not
It's still
Look
at
Sup¬
way.
secured
man
of
defray
more
of the kinds, of facts I
have mentioned. If
you have those
facts in your sales kit and will
or
possibility present them
that income might grow.
an
av¬
Notice of 25th Consecutive
Dividend.
erage 4%
but was
The
Investors
makes the
dividual
in
most
a
sequence
sense
that
in each
in¬
instance, this session
on
the
science of numbers will have
had value for your customers and
the value of his initial investment
Board
Selective
of
Directors
Fund
of
has
declared
quarterly dividend of nine
share
payable
shareholders
ary
29,
on
of
cents
March 21,
record
as
a
Febru¬
1952.
H. K. Bradford, President
This
of
group
performances
of
common
stocks
during
the period 1945-1951 illustrates the vital
importance to the average
investor of spreading his investment risk
The chart, prepared by
many industries.
Calvin Bullock's Investment Management
INC,
Minneapolis, Minnesota
Department, also demonstrates
the necessity
make
the 20 years
enough
20
years.
the
$8,000
his
Is
of
to
it
for yourselves.
see
not
income
Dresser, Escher Join
original
$10,000
investment "whole" again? Is the
value of mutual fund shares cost¬
ing $10,000 likely to shrink to $2,over a 20-year period?
000
of competent security
analysis and portfolio
,supervision. For the small investor, mutual
funds are th^'most important and economical method
by which
sufficient risk-spread and competent investment
management can
be obtained.
after
that
would
chart
over
unlucky
lower
among
SELECTIVE FUND,
return
likely
per
1952 to
of
a
be made
their
day-to-day living
costs. Most of us are
going to live
"We can¬ to a riper older age than our fore¬
This brings me back to
specified rate' fathers.
mutual
how
see
This
SELECTIVE
meet
person'to whom
but would prefer to let income
in
Sales Offices
by John Living¬
announced
was
principal if
better rate of return
must and should say,
ning to retire l'or 20
J charge of all Retail
*
take
man
if the capital earns less—or
For the man who is not
'
ston
The moral of the story
is obvious. People
dependent upon
a
headed
needed to produce $100 per
Feb. 25, 1952.
APPOINTMENT of Walter Beneas
had
lived
their accumulated wealth had bet¬
ter avoid spending
he's
to
and
'
dick
plans
he'd
stock,
many
a $30,000 investment will
produce
$100 per month. Take your pencil
total of
PERSONAL
his
because
wrong
over
16, 1951, sold 932,789 shares
of 23 series of special stocks for
on
90—that
over
gone
I started. There is no time
funds;
if*
you're lucky, you may average 4% to lose in informing people of the
the tfears," it is sometimes a- facts about life expectancy, years
revelatiorrto learn that that 4% on of retirement and the contribu¬
a
Feb.
from registration
was
to
financially.good atmosphere to create^
a
For
we
and
need
parlor game;: too long.
serious discussion of invest¬
a
not
,
ing
he'll
a
aggiegate
from
Feb. 25.
a
thinks
man
is far from
ing.
remaining
!
,
on
where
of
,
a
makes
of
fective March 29, 1951, sold a to¬
tal
of
23.530
shares
of
capital
stock
.
&
registration statement ef-
a
if
even
under
This leads
in
logic.
ple who
to
to
a
little exercise
It has appealed
are
capital
three
me
in funds.
things
to peo¬
concerned about risk
can
Only one of
happen to the
Goodbody & Go.
Goodbody & Co., 115 Broadway,
New
York
New
York
nounce
that
Franklin
Escher,
firm
City, members of the
Stock
Exchange, an¬
S. Dresser,
and
Hugh W.
Gardiner
Escher
former
partners
of Dresser and
in
the
Escher, have
become associated with them.
36
The Commercial and Financial Chronicle
(1108)
Continued
ference, in which both our respec¬
tive countries are represented.
I
from first page
started
it, the
Labor Government of Great Brit¬
don't
International Price
who
know
State Department in
Washington. The existence of this
conference
group
is
not
well
known in my country, and per¬
ain,
Stabilization—A Hoax
the
or
haps not in yours. At any rate, it
province, or a State. No, they is a governmental agency similar
plan for the entire country. to the International Trade Organ¬
empting farmers and labor. Labor
ization repudiated by the Congress,
monopolies are growing stronger They go even further. Now, it's
the whole world they must con¬ seeking to divide scarce metals and
by the year and they pose a prob¬
Wouldn't
you
think they other materials among the nations
lem that some day may have to trol.
would welcome a trial of their of the free world. Please don't ask
be tackled
of monopolies,
formation
the
a
ex¬
must
just
resolutely as
as
business in the United4
know
States to be
provincial
or
ideas?
their
they
to
why
country
compelled
has
Act
Anti-Trust
city
submitting an entire
before
level
industrial
the
at
ideas
problem of what to do with
trusts.
The
Sherman
the
Do
you
nations consider them¬
which
me
selves free,
the
If
and which are not.
present trend continues, none
don't?
Largely of us will remain "free." The di¬
their plans must involve viding line is apparently the iron
because
competitive. It prevents collusion
curtain of the communist coun¬
among
businessmen to
stabilize supreme power, and they must
tries. The International Materials
their own economyIt stresses the therefore be near the source of the
one
government instrumentality Conference would seem to be su¬
importance of the free market. If
perfluous to
European
Nations,
there is any outstanding contribu¬ that represents life or death to a
inasmuch as the United States has
tion which the United States has community, i.e., the power to print
tied its hands internationally, by
made to world economic thinking, and issue money, and to regulate
fixing ceiling prices generally well
it is the development of the idea its flow.
below the world market—until re¬
of the free market and open com¬
One of the first things they usu¬
cently— and so enabling foreign
petition, with a vivid demonstra¬ ally do is to discourage confidence countries to outbid the United
tion of the beneficial results to in gold or silver as a currency
States with impunity for all the
the public that flow from the pol¬ base, and to surround the country
copper, lead and zinc and other
with exchange regulations, or li¬
icy.
Measured
by
the
results
metals they need. (This accounts
achieved in contrast to different censes, that stifle domestic and
for shortages in the United States.)
.easterns prevailing in Europe, the foreign trade. Anything to get Our Mexican, Australian, Cana¬
'record speaks for itself. But I did away from the decisions of a free
dian,
African,
South
American
not come here to boast.
I came market as to what a currency is
here
constructive
be
to
comments.
Also,
I
in
my
from
exempt
comparison the present
situation,
for, under the stress of feverish
preparation for defense and the
imposition of controls in my coun¬
try, the United States record is
naturally distorted.
a
recent
to travel
worth.
actually
other friends
and
have
been
able
in Eu¬
It was
easily
to
obtain
higher
metal
prices than miners in the States.
rope
and
see
what passes
for
They are to be congratulated for
money
in most European coun¬
not following our example.
For
tries today.
Paper and aluminum
years
to come they will benefit
coins—that seems generally to be
from
the
great stimulus which
Europe's idea of money. But who
high metal prices have given their
am
I
to
criticize?
The
United
revelation
to
me
is also drifting away from
States
mineral economies.
The International Materials Con¬
Occupied,
as many of you are,
difficult task of finding
gold. We have made it a crime
ference functions
through com¬
to hold gold. Imagine, you can be
supplies,. put in jail in the United States for mittees under the auspices of the
United States State Department,
It is not to be expected that you
possessing a gold coin illegally.
would
have
time
to
study the The citizen nearly everywhere has which admits the IMC has no
forces that, in the last analysis,
had the power of the purse adroit¬ statutory authority. It alleges that
with
and
the
developing
new
ore
determine whether you operate or
close
down.
Perhaps, therefore,
you
welcome
may
few
a
comments which may
ly taken
inflation
broad
Some
help stimu¬
from him so that
proceed indefinitely.
away
can
leaders
teach
Economics1
on
My first observation is don't fall
render
ever
in
seen
the
any
widely
used
States in
tions.
in
to
world,
the
prevent
to
sees
four
fluctua¬
storms
and
a
stimulus
this.
Show
.
We
of
its
goes
to
on
say:
it
course
had
advan¬
some
We
It
have
We have
was
casualty of World War I,
a
and since then
couldn't put
our
calmness.
all the kings'
it together again, and
wouldn't
many
men
want
if
to
they
mankind
areas
in
all
How
the globe
on
does
miners?
that
strike
you
gold
Have you ever examined
tranquility, or the textbooks on economics used
temperature, as in the in your own schools? It is an illu¬
Tropics, and I will minating experience.
of
Artie
the
or
show you spots that are
noted for
their lack of conspicuous contribu¬
tions to our civilization. We cion't
have political
even
stability
Only a few years ago the pound
sterling cleared the lion's share of
such
a
horror
depressions, or
unemployment, that they are will¬
ing, indeed, to advocate govern¬
ment
ability of
tion
in
And
ose
me
can
intervention
.They have
so
a
a
government
commerce
and
to
tell
us
to
life
order
is
our
in the machine age for
us
because
that such
ever
a
of
confi¬
favorable condition
return,
pound sterling is
long
so
a
as
the
managed paper
subject to the current of
devaluation.
func¬
industry.
too
brokerage,
currency,
Now I shall
they have evolved grandi¬
schemes
They
to prevent it.
sublime faith in the
ample
lives.
of
give
you a
modern
good
ex¬
international
planning in action as it affects the
mining industry, not only in my
complex
to handle
own
country, but yours as well, in
creating which currency manipulation does
depressions,
and
that
not yet play a part.
planning
The rearma¬
from the top is necessary.
They ment program has given a great
•forget that life was much more impetus to the global planners.
trying before the machine age.
They have been having a wonder¬
our
own
affairs
without
One thing has always struck
forcibly
ful time.
me
for the
when
individuals.
listening to these
They are nearly al¬
What better opportunity
planners than
armament?
war,
or
re¬
They plan today not
ways a few intellectuals from our 'only under the strict provision of
schools of learning who have had the law, or the Defense Act, as it
is known in the
States, but also in¬
only a remote, if any, contact with
formally, without authority, as I
the struggle to make a
living by shall
show
actually
producing something.
Also, that the planning they en¬
visage is usually enormous in its
you.
The International Materials
Conference
One of their latest creations is
They wouldn't
think
of
planning for a village, or for the the International Materials Con¬
City of Toronto, a county, the
1
.scope.
smaller government units such
as
>
not
means
or
may
only
execution
not
may
be
checking
of
their
of
the
recommenda¬
tions, but they have also provided
for appeals from their recommen¬
dations.
If the Conference is such
informal agency, why the fol¬
an
low up?
I
as
the Inter¬
say,
national Materials Conference al¬
it
is
consultative
a
purely voluntary
organization with no
authority whatsoever, the instruc¬
tions
the
of
countries
ments
IMC
to
participating
"The
states:
govern¬
of
participating countries
seeing that
allocations
are
respected."
ard
of
living.
plemented
the
could
Economics, 2nd, Edition — by Paul
Samuelson, McGraw-Hill Book Co., 1951.
without
use
of the
authorization
Voluntary?
censes.
the
from
through
IMC
li¬
export
You
be
the
by
in
afoul
running
regulations.
Unemployment
and
in
is
it
The
has
Conference
significant
coined
ingenious
and
that you must
a
new
adjustments
their
Why could it not have confined
operations to the acquisition,
appeared and threatened to grow
its
or
in
When this
United
the
exposed
was
States
Senate,
ma¬
terials suddenly became available.
The
International
Materials
Conference is ambitious.
it
vember
though
have
announced
it is
sideration
"Al¬
Committees
with
dealt
not
prices,
that,
the
likely that the
of
Stability
that
give
wouldn't
my
the
the activities of the
International
ference, if it
and
—
It will be
very
about it.
to increase production.
of
will¬
the
"Measures
nomic
vention, and
the
plies to
forthcoming
any
mendations
ap¬
recom¬
in
conservation
they require gov¬
coercion
ernment
guess
same
for
I'll wager
use.
inter¬
government
and
little
con¬
sultation with industry.
Note, also, the
cal
Materials
Con¬
is, and I quote: "The criti¬
serious
and
materials
ening
given for
reason
International
problems of
shortages
duction
the
and
inflation
in
threat¬
were
to jeopardize
defense
pro¬
against
struggle
the
raw
countries
of
the
free
world, and international con¬
sultation and action were clearly
required."
is
together. It
thing to be concerned over
one
the
Note how defense and
availability,
for
of
defense,
some
metals and minerals that
only
found
in
spots
few
a
are
over
the world, like manganese,
tin and
chrome, but it is quite another to
include
the
great
international
commodities such
zinc,
ground
of
tical
Why
anti-inflation
foodstuffs
were
textiles omitted,
if this is
no
When
analyze "alternative
perts fear is
a
rearmament,
that
they did not hamper
lies
Can't
just picture
you
Committees
statistics in hand,
themselves
what
on
to
as
at
the
work,
arguing among
who
receives
continental scale, with¬
a
out any hearings, or by your leave!
The operations of the IMC have
not
much
seen
daylight.
Even
Congressmen in the United States
have never heard of it. One thing
I
learn, however, and that is, other
countries
vice
consult and
country.
India's
For
creased
about
seems
example,
whereas
industrial
activity has in¬
10%
over
the
last
12
months, its allocation and con¬
sumption of zinc has increased
some
If
70%.
India is not rearming.
anything, India is leaning to the
communists and has denied us, to
considerable degree, the burlap
a
we
require in agriculture.
If
with the principle
of the IMC, you must necessarily
you
agree
You
the
really need¬
by the British of 30,000
of lead
tons
at
have read recently of
may
sale
the
cents
per
to
S.
U.
lb.
the
States
United
ceiling
price
of
19
This sale represents
of probably $2 million to
Britain, which may not be
much the way nations figure these
a
loss
Great
but it shows the
days,
to
favored
recessions
and
needed
bulk
that
with
ease
.
Well,
of the principal
one
ommendations
reduce
the
the
of
rec¬
experts
international
to
impact
of recessions is that "Governments
should
the
reconsider
for
case
a
series of commodity arrangements
designed to
stabilize world
com¬
modity markets in the face of the
and downs of de¬
ups
and
supply."
have revealed in
ternational
the
to
nth
the
There
all its
peacetime intervention
degree.
Specifically,
international
consist
the report.
of
They
glossed
are
How
measures
detailed in
is not
also
are
to be
advised.
one
is
sure
be
of
But
thing, any
one
subscribing
such
to
grandiose super-cartel
must
vide,
the
place
some
be
is
not described. What laws
no
over
shall
they
internationally
you may
you
glory, in¬
in
arm
of
a
pro¬
back¬
govern¬
ment
compulsion through fine or
imprisonment.
Otherwise,
the
scheme
is
sure
Stability,
what
committed
hazard
not
a
my
in
are
thy name!
guess
as
down.
break
to
crimes
to
be
to
I won't
whether
or
country will subscribe to
the United Nations'
international
philosophy of
government
cartels.
If it
does, then it will have to
their
vise
sharply its historic policy of
of
materials, and cen¬
planning, can suffer loss¬
es.
As late as August, 1951, the
Ministry of Supply was reported
to
have
bought 10,000 tons of
Mexican lead at 22c per lb. for
raw
tralized
fourth quarter delivery, and
per
.
re¬
have
buying
originat¬
." My
little gratitude.
so
ground, the strong
sorted
India
the
buy
ed for defense.
countries
much
a
than they
more
in
to
ceiling
able
were
which
trade; the United
decisions of the IMC.
been
much
They
the ad¬
use
States avoids this approach. There
is no time to analyze the actual
have
the
above
experienced
businessmen
of
in international
to
in
country gets so much blame
poor
nation
themselves with
"... that in
and
ing in the United States.
enforced
reason
ex¬
nomic stability of the rest of the
world
its
efforts, for the simple
you
sudden cutback in
a
completely.
defense
report,
future the real dangers to the eco¬
shall
ernment has suffered for lack of
the
read
you
what
I
prac¬
of
discover that the recession the
have
As
Eco¬
(November,
"experts" (that
dealing with the
problems of reducing the inter¬
national.;, impact
of
recessions."
European gov¬
move?
already implied,
an
International
five
ways
mand
against
report
entitled,
by the Secretary General, formu¬
late and
temporary
struggle
a
it
In
pulp, etc.,
on
recent
a
Nations
for
doubt
heard
is the exact term used), appointed
wool, copper,
as
paper
I
even
Stability."
1951.)
lumped
are
have
you
I refer to
ing to hazard the guess they will
Con¬
important—inter¬
United
involve
more
of
not for another
development.
much if
the recommendations to be issued
am
much
so
Materials
were
highly
national
I
Program
devote
discussion to the operations of
IMC will continue to be informal.
illuminating to learn of
questions
many
'
I
supplies
ther steps in
asking
would
required. I
was
The United Nations Economic
available
problems." Presumably these fur¬
That
tonight!
ing production and distributing of
they
to be
seem
con¬
will
require
attention to such
metals that
rare
need?
have been all that
of increas¬
methods
of the
some
nations seriously interested in
rearmament
problems of
of
most
Last No¬
perhaps assistance, in procur¬
ing
all
States.
Conference
to bring
balance, they
in
they
and
well
tive?
If nations
currencies
paper
for
The term is "Entitlement
Consumption." Isn't it descrip¬
in
usually issue
that depreciate
in value, to pay their debts. Why
should the IMC inject itself into
this complicated civilian picture?
suffer,
history.
down in
than
necessary
economies
passed,
I think it will go
Britain.
Great
price ceilings, or
if they did have a ceiling, it was
note particu¬
nation
a
Inflation
Canada
in
each
unwilling to make the internal
are
pound of copper, lead, or zinc in
judge.
when
occurs
beyond its means.
different
is
for
problem
France, different in Belgium than
in Detroit.
and
control
new
planners)
to cut down the
were
inflation.
and
the
of
States,
structions
with
Recently, the "rec¬
available amount of copper which
the
automobile
manufacturers
This is followed with detailed in¬
line
stand¬
the Defense Production agency
the
in
give
you
(there is another
designation
lead and
purchases
lives
ommendations" of the IMC, as im¬
will be responsible for
for
nation
and other
are
Inflation
inflation.
domestic
a
that
countries
with
cursed
is
a
of
policies
consump¬
materials, and
inflation
Although,
larly.
banking
dence in the gold pound were in¬
calculable.
It is inconceivable to
of
that
observed by cooperating countries.
But I note they have set up a
international
and
essential
power
it the power to decide your
ference
term
surance,
The stabilizers do away with the
stimulation of change.
They have
cutting the cloth of
fight against infla¬
cerned with
tion, it will have to concern itself
with the internal, not the external
in¬
any
the
tion of say copper, wool
this
world commerce, and the benefits
which came to Great Britain in in¬
any¬
where.
of
Give
conference
Thursday, March 13, 1952
.
or
should, deter¬
The
obvious.
ternational
their
have
evenness
is
reason
.
an
formally
group,
can, and
mine your standard of living.
dations
leges
"Of
the tages, but alas, poor gold standard!
international
informally,
the IMC merely makes recommen¬
own
extremely valu¬ could."
to
me
you
in
that.
subsequent
certain
able
where'
is
seasons.
night following day.
There is
greatest universi¬
our
Stabilize, rather than a master
means
to economic destiny." It
unless it
Nature
grave.
have
United
you
Stability is found nowhere
the
the
100 of
over
.
Webster,
steady
sur¬
Have
succeed?
to
throughout
ties, stating that the gold standard
made each country a slave
stabilization effort ".
metals
according
hold
liberties.
your
coming
of college students to
gold. Here is a textbook
distrust
'•
for the stabilization mania to
the
generation
late your thinking on some funda¬
mental issues.
with the principle that
agree
.
213/4c
lb. for first quarter delivery.
open
domestic
which
such rapid
competition,
foreign,
brought
policy
a
about
tremendous
benefits
to
my
re¬
and
has
and
coun¬
tragedy
of the first magnitude if it were to
be discarded. Also, it will have to
trymen, that it would be
confess
that
those
a
policies
are
sound
19c per lb. New York.
Consumption of lead was at an all
nationally, but not inter¬
nationally; that a double standard
of morality is approved, one for
time high in
the
Yet, here they are unloading 30,000 tons at
1951,
with
striction
United
been
If
in
Great Britain during
apparently
whereas
use,
States
little
re¬
in
consumers
the
have
IMC
is
seriously
and
one
The
tions
con¬
for
govern¬
experts in the United Na¬
report
state
not believe any new
severely restricted.
the
citizens
ment.
'agency is
necessary
they do
international
or practicable
that
Volume 175
Number 5098
.
.
The Commercial and, Financial Chronicle
.
(1109)
to
administer
scheme
for
comprehensive
a
a
of
range
commodities.
Why?
different
You guessed
it.
Because, they state, such a
body as the Interim Co-Ordinating Committee for International
Commodity Arrangements, or the
International
ence
used
for
Materials
already
words,
exist
the
the
Confer¬
and
purpose.
be
can
In
.
other
IMC, created for the
is to flower into a
'
emergency,
Where
would
of
some
Canada?
zinc
would
of
then
have
ferent
mentality
timber
haps
stabilization.
have
you
elaborate
Per¬
noted
impressive
and
already
names
set
other
mention
rail
of
items
these
nificance
given
were
simpler
and, I may say,
designations, such
Copper
Trust," or the "International Zinc
Trust," for that
is
what they
would become, with the important
accurate
more
the
as
"International
difference
that
they
would
be
super-trusts
cloaked,
as
they
would be, with the mantle of gov¬
coercion.
ernment
And
only re¬
cently, international efforts were
made
break
to
German
war
mercial
and
trusts!
These
cile.
We
to
admit
must
Nations
pre¬
com¬
events
difficult
confusing and
United
the great
Japanese
up
are
recon¬
that
the
super-trusts, or
course be withof the property
cartels, would, of
tout
j
ownership
they would control.
One
serious
again)
to
planning?
socialist
market
free
IMC
was announcing the need for
making recommendations for in¬
creasing production and
uses
the
sphere,
,lead
becoming
were
weeks
the
are
planners.
habit
noying
objections.
the market
To
ing
our
we
I
for
of
bewil¬
and
intercontinental
schemes
is,
the objective of doing
with depressions and main¬
taining full employment. All na¬
away
scribed
to
the
to
doctrine
to have sub¬
presumed
are
full
employment
Keynesian economics,
—
become
technical.
"Full
em¬
ployment" is a deceptive term, in
that full employment is not nec¬
essarily synomymous with a high
standard of
living.
Indeed, po¬
fixation
litical
full
on
employ¬
ment may produce public
of
policies
intervention that
may actually prevent the standard
of living being elevated.
Some
government
countries
are
ism,
that
social¬
or
do for them what they
can
do
cannot
convinced
so
planning,
government
for
themselves,
they
embraced
have
government di¬
rection of their lives wholeheart¬
Government
edly.
in
found
be
to
is
planning
varying
degrees
the world, from the ironclad
over
of
variety
Russia,
through
the
socialism
has
it
been
a
success.
We in the United States and Can¬
of
fortunate
witness the
socialism
from
a
in
being
in
other
distance.
able
and failure
course
countries,
Let
profit
us
from the observation!
The
ated
simple
fact
is
but
that
appreci¬
little
Socialism
can
or
succeed, because planning,
socialism, paradoxically, leads
to
chaos.
never
Think
ment
and
mean.
1
is
stability,
of
the
to
read
surrender
substitution
is
the
of
government coer¬
compulsory state.
The
cion—the
price
market—and
free
a
high.
too
note, also,
if ever,
I
that the stabilizers seldom,
for
fundamental
the
stress
economic
the
which the world
to be
reason
instability with
constantly
seems
plagued—War.
war that violently disrupts
you
about
will
it
a
mo¬
what
see
if
governments
interfere,
they Continued
generally have to conform to the
decisions
of
timately.
the
We
free
impose
may
controls to curb
market
price
to make to the free market.
The
free market is supreme. It doesn't
bow to kings or presidents.
We
ought
night
thank
to
for
the
stars
our
lives.
our
is
It
It is
states,
blessings
that
war
deva¬
impoverishes
that
causes
the
and while
be
all hope that
we
Nations will
United
to
prove
in preventing war,
disconcerting to find
rather
promulgating economic theories
which
recommendations
and
circumscribe
would
liberties
the
of the
people, subjecting them to
government edict, presumably for
the
that
It
has
yet to be demonstrated.
tries today
from
planning,
succumbed
not
coun¬
that have drifted away
government
have
those
that
noticeable
is
benefit
benefit—a
common
the best indus¬
song, have made
trial progress on
the continent of
Europe,
notably
Germany
ajid
Belgium, as contrasted with con¬
Britain
Great
in
ditions
and
France.
"The German recovery
of
triumph
a
concludes
power
economic
an
disturbing,
of
bank.
al¬
Germany
is the strongest European
west of the Iron Curtain,
ready
in
that
think
"Some
York
New
a
has been
enterprise,"
free
is
to
nations
postwar economic oppor¬
tunities have been superior but
whose
ist
preoccupation with Social¬
has
experimentation
real
to
been
recovery,"
a
it
who
groups
longer
mo
trust
it,
but demand government interven¬
tion
to prevent
the discomforts
which
In
sometimes
the
West
listened
to
arise
few
a
succession
a
mine operators relate to
tion
the
they
difficulties
beset.
were
under
weeks
of
a
it.
I
ago,
small
conven¬
with
which
Nearly
all
of
them requested the government to
come to their assistance.
One.of
them
to
too far from the railroad
was
is
free
A
market
our
liberties.
with
ment
govern¬
to pay for
the cost of ship¬
ping his output; another com¬
plained of inability to procure the
necessary money to equip a prop¬
erty
he
thought
should
operate;
another wanted the government to
him
pay
subsidy because his ore
apparently too low grade to
was
be
mined
time for
turned to
when
and
me
and
have
we
can't
we
said, "In Canada,
those
make
shut her down."
difficulties,
her
How
pay,
we
refreshing!
May you, my friends in Canada,
long continue to follow that sound
precept.
If
defending
and
holidays,
eetThlVrnfimpenffr?hplng hhf
■
a
get their time off then and during
the
several
the
tween
the
do,
you
you
will
be
priceless heritage
your
liberties that
have
acterized your mode of
char¬
two
department
of
Hoffman
&
Goodwin,
Walston,
1370
Broadway,
are
would
than
beef
tend
about
to
freedom.
Some
nations have already surrendered
destroy
our
of their freedoms,
many
so
what
happened to them—much
do
us
who
battle.*
had
all of
as
have
actually been to
short, let's have the
In
courage to lay on the line to these
18 year olds what it means to be
soldier instead
a
home from
^May I
that
I
of sending them
pink tea experience.
a
further and point out
go
would
than
advocate
able
or
closer
of
conditions
field
ap-
is
likely to be found in the
training centers that will be availcreated.
If
all
hands
are
working hard enough during the
day, they will sleep better on a
cot
canvas
or
they would
mattress
thin mattress than
a
the best Simmons'
on
after
day which
a
con-
sists
of
puttering
around
and
waiting for the next assignment.
ought to confess that this idea
from
have more "security," more
eyeglasses, but these
articles aren't free, as they are
may
cialists abhor
can
ket
way.
So¬
free market.
VMI ran three "pay yqur
way" civilian training camps
own
the
at
could
a
hard
understand why.
is
doesn't
I
It
a
power,
essentially
care
doesn't
A free
ruthless.
It
item costs.
receiving
an
Institute,
which
be described
the
you
were
care
for
government
planner and planned the Canadian
economy
according to
your
ideas.
for it operates inexorably,
whether
or
not
governments
tempt to interfere with it.
at¬
In fact,
of the press
and radio is fully informed of the
facts.
Accordingly,
find
when
voting
perhaps
.
as
on
I do not think I could
better
guidance
than
the
Principles laid down by Abraham
LinColn.
In
"Saneamon
a?ked
asKea
torial
June
of
1836,
Tnurnal"
for
in
the
Prti
an
Ren"
the various
ior tne various Hep—
^
f?* lejL?f people know w*ere
*Ky stood on various mattersS, Llnccdn Twrote,,^ letJer
^
T3a§ai?on 0^°uriJaJ. UI}der
-
aa^e
June 13, 1836, stating how
st°od on various subjects and
then *aid out the principle which
seryed as a guide to govern his
v°tmg.^ It is a principle which
many_ Members of Congress hav£
sight of in the mistaken idea
that they must follow the party
^eadership or the party itself when
under our republican constitution-*
aJ; J!*1
government all power
should rest with the people,
Lincoln's principle,
ed it,
;
he
as
stat¬
was:
-
"While
acting as their Representative, I shall be governed by
their
will
all
on
which I have the
subjects
means
upon
of know-
irig what their will is; and upon
aR others, I shall do what
my own
judgment teaches me will best adtheir interests."
vance
Lincoln's
principles
good
are
enough
for me and I know the
will of the people of the Eleventh
Illinois
District
as
it
concerns
their attitude on universal
Officers'
sensitivity, however, has not been
guaranteed.
Standard
the
Oil Products Co. Inc.,
country's
leading
turer of television
subsidiary,
ment
the
Corp.,
cupying
manufac¬
tired
so
slept
I did each night,
as
better
on
better
satisfied
Kollsman
Instru¬
currently
window
with
oc¬
an
two-inch
a
thTtentor"have
of
been
never
r^eia^aho^T'ca^sayTat
hi
!wo
those
ing from
months
scratch
I
start'
and
learned
more
exhibit depicting television's
military fundamentals than I did
outstanding growth during the last in the 20 months from there on.
five
and
years,
supplementary
a
demonstration of Kollsman
ucts
ranging from
prod¬
altimeter to
an
jet speed indicator.
a
(Special
to
The
Financial
Chronicle)
ANGELE$, Calif. — Paul
W. Reed and John Raggio have
become
associated
with
Harris,
Upham
Street.
ners
in
&
Co.,
West
523
hear about
either
remember
Academy days
of
dozen
a
they
to
The
Financial
to
go
or
their
forgotten
In favor of
training
tary
Co.
&
with
offices
at
approval
of
105
House
of
action
lslation
back
He
to
was
dictated
was
March
4
1st
UMT
sent
Committee
a
before
by
leg-
roll
call
a
Lieutenant
in
129th
formerly with Watling, Lerchen &
S.
the
P.
•
is
-
forceful
Oarntherc
except
t
in
way
has
from
much I
not
Illinois
can
add
which
nresented
the
perhaps to endose
166 letters
military training.
6
a
Record"
to
Dr.
Fla.—Lenox
has joined the staff of
ithe policy
H.
3
inn
<*nd
137
j
Leedy,
Wheeler &
Alleman, Inc., Florida
Building. He was formerly
with King Merritt & Company and
Bank
in
Grimm &
from
Co.
LOS
to
The
a
issue,
the
which
Financial
ANGELES,
*
f
ing
is
Note:
tained
in
Record»
Calif. —Wil¬
of
text
Sheehan's
Chronicle^
are
as
liam
you
will
note
Johnston
has
joined the
staff of Oscar F. Kraft & Co., 530
West Sixth Street.
r.
of
the
heard
the
and
Sixteen
others
as
con-
nf
we
whose
Uipsp
teacher
orSzailons
ermine
TTMT
ex-
in
d"
the
conducted polls
on the
question, and the results of these
* „
'tto mo arc
as
follows-
p0Us sent t0 me aie as ±ollowsNum_
*
ber
nge
Opposed to universal mili-
favor'oTuSfve'r^I
on
mill:
„
.
.
53
12.9
29
-------
g.3
universal
military training
—
,
To™ ;
""""IT
1
Combining all of the above
^
„
considering all
cons
20
and
^TT'ldZon^varfous™Lrent
"pinions
"Congressional
of March 4.
pros
and
riefinitelv nnnncpJJ
tary training
followCongressman
remarks
in
communications,
organizational
groups
d
were
the
Speaker,
in
church
166
Of this
memberships number in the thou-
In
The
...
S.
from
unmistakable
perusal of the enclosed.
Editor's
Joins Oscar Kraft
(Special
this
of
of
program
3 expressed aPP™val, and 1
of "government of the
District
my
a
copv
people, for the people and by the
people," the wishes of the people
on
*
Opposed
Let ^ave
f !lg
Of these letters,
idea
expressed approval of the
Were de*lnitely opposed to UMT,
no?ntreTsSsumianv
(Special to The Financial Chronicle)
ORLANDO,
re-
about universal
ease
remarks I inserted in
some
"Congressional
Leedy, Wheeler Adds
9.2
^
Total
were
SHEEHAN
Congressman
There
of
31
dte-
UMT in the United States.
Artillery in World War I.
rrKoi,0
West
21
53
or"
universal
Since January, 1952 I have
Lang's letter
TIMOTHY
Grand River Avenue to engage in
a
securities
business.
He
was
25.8
military training
ceived
♦Mr.
U.
148
Qu™ medVp^ovaf
vigorous
like.
Field
.
unive'mimrn:
Undecided about universal
One
about
more
ege
°p^?.fdtrtft({n,f"iversal mili"
own
any
ccn£.
ber
training
than is ever thought of at Division Training Centers and the
Chronicle)
HOWELL, Mich.—Hugh A. Mc¬
Pherson, II has formed McPherson
v0<ing
Num.
group
(Special
by
; ^cently 1 mailed °ut a
card survey on UMT t0 aPPro*"mately 2'400 Pe°Ple in my district,
7nha results 0t'this po11 are as fo1"
military schools where
have
vote.
McPherson & Co. Formed
I will express the will
constituents
universal'
Sixth
Both were formerly part¬
Raggio, Reed & Co.
congress.
military training
being foi*ted upo*
ig
pej>
So, when I
fast-moving,
LOS
which
of -my
military training for 18 year olds
(I had just graduated from college), I would urge that military
brass
Raggio, Reed Join
Harris, Upham & Co.
idea
learned f®alnst umversal military train"
I
that
tuners, and its
are
the
to bed
or
.
Assume
from
oppo-
»
mar¬
what any
training
safely assume that
American
voter
can
preparatory
mi)iassist this month for the benefit
Training Camps tary training.
The greatest mathat were
then going on.
of customers
I at- jority of the
through a window
people of the Elevtended
the
second
one
in
July enth Illinois District are
display featuring tuners, instru¬
opposed
and August, and have never gone
ments and indicators.
to the universal
Investment
is
One
out—the
finding
we
the
average
through the medium
personal experience
a
in 1917.
for
they Rand
free wigs and
nents,
brag
"
we
military
e^sentSl d?sdplines,^e?s
participated
I
research
we
do it and not sugar-coat it. If this
could
be achieved,
my
guess
is
that after it was over those who
comes
The
If
groups.
be-
going to teach militarv fnniiampn-
tals and
living.
Walston, Hoffman Display
weeks
summer
profitably. When they
proximation
through, a Canadian friend
were
universal
its various proponents and
,,
Je?K°n Christmascompletely this subject,
rLW-°?
the
a
synonymous
Destroy it and
future.
exclude
rather
survive, he wanted the
Co,
notes.
the
great invention of mankind, muttering or beefing, and cerso quickly, quiet¬
tainly would not let them go home
ly, efficiently, and with complete and, among other things, clutter
impartiality. And yet, note how up public' transportation during
every
country has
a
group
or so short a period of training. That
leaders
course,
other
some
This
sense.
European
of
impressed and will value
in
I wouldn't allow much
of
siren
its
to
or
them
which functions
successful
is
And Drafts New UMT Bill
will be
this
that enslaves and
war
3
page
Rep. Vinson Changes Mind
inflation, but that
merely postpones the inevitable
adjustment that prices will have
each
from
ul¬
It is
Spain, to the moderate
qf Great Britain. Based upon the
record alone, nowhere, absolutely
are
have
I
precious freedom—the free¬
a
deterrent
to
Well,
prefer not to be sta¬
I note that, behind
schemes
whose
ada
assumption
stabilized.
all
government planning of dictator¬
ships
such
as
Argentina
and
nowhere,
the
on
be
to
for
the
a
methods of stabiliz¬
lives,
one,
in
up
on
wish
it
tions
It can't replace
place.
it
sum
sertations
Beneath all of these continental
course,
place
some
few words:
The stabilizers issue scholarly dis¬
it
and
available
miserable failure—not to mention
other
derment—not to say consternation.
of
the despised free
them. Without a
use
enon,
mar-
side
completely,-
discomfiture
their
do
up¬
Free
the
in
setting their experts' plans, much
to
to
of
controls.
thorn
a
as
official of
advocating export
ago,
was
import
kets
able
an¬
one
and
>
why
reason
are
They have the
As recently
three
IMC
beginning
people.
It is war
cataclysmic fluctua¬
tions
in
property values.
It is
war
that
prevents
the orderly
functioning of the gold standard.
But war is
a
political phenom¬
noticeably easier.
the
fair
they would be com¬
pletely frustrated.
And that is
why socialism is bound to be a
an
zinc
and
restrict¬
international
markets for copper,
on
only
to help
market
dom
situation, and acted,
I economic events might have com¬
pletely changed the trade aspect.
A good illustration is the recent
thinking of the IMG.- While the
word
a
the globe,
on
of
a
that
difficulties in
the
The
be
to
reach
you
countries
they
cause
ness.
ing
of
have
All
planning at all today is be¬
any
national
cartels, and enough to
them, is their unwieldiBy the time
they have
mine
for
is
you
Are
some
create
studied
(there
before
see
condemn
,
all
supplies, not to
would
bilized,
objection to inter-
they
transportation.
comparison.
they
that
But
because
requirements
and
stabilized
if
producers
price.
a
do,
given these organizations. I think
we
would
appreciate their sig¬
better
all
probably different wages
And they all have dif¬
well.
permanent United Nations instru¬
for
of
different costs and different
profits,
as
might
you
made of the costs
survey
wouldn't
of
Let's
take
What price
Well,
production
and
With
products
example.
set?
you
a
great
Naturally.
an
as
have
start?
you
the
37
re-
sUlts j find tbat out 0f those whose
have
debate, concerning
Continued
on page
38
38
(1110)
The Commercial and Financial
Chronicle
Continued
they have don't
Tomorrow's
set of averages as proof
any
for any
Markets
*
Wkyte
I
Says —
37
page
scrapped
and
attention
to
our
home affairs
substituted, the de¬
mand for UMT will be
automati¬
And Drafts New UMT Bill
emphasize the averages in
cally scrapped.
With
that
reason
a
is
opinions I have 73%
UMT,
oppose
namely,
"death
hardly the generally ac¬
cepted
one.
The
public
By WALTER WHYTEss
watches averages; sometimes
From
here
on
the
Dow it is swayed almost entirely
Theory will play an important by what they do. But because
psychological
part
in
the of this, the strict observance
Eleventh
discussion
well
stock
dealing
-
market. The rails
have
of
performance as a
about passed the previous old yardstick
for
your
action
high of 90.08; the industrials must be tempered by con¬
still have to pass their old siderable
caution.
First
it
high of 276.37. According to must be pointed out that en¬
the Theory, if both averages thusiasm
during a market ad¬
get above their previous highs vance is almost a sure way to
a
market
bull
will have been
continuance
signalled.
*
*
average
the same
during a
get you losses. By
token
pessimism
market decline should also be
i'fi
18%
favor
decided
it, while 9%
the
on
subject
qualified their approval
The
will
But while it's nice to have
tion is done
on
weakness.
"I
of
the
people
Whether
*
the averages
not
or
will
high should be only of
It's
your individual stocks that
should be of primary impor¬
a
new
be
governed
of
means
D.
Orders Executed
on
tance.
"The
Established
1919
SECURITIES
York
Stock
York
Curb
Exchange
Francisco
San
Chicago
14 Wall
San
Trade
Exchange
New York 5, N. Y.
COrtlandt 7-4150
Wires
(Associate)
Exchange
of
Cotton
Street
Private
Exchange
Stock
Board
Yoik
New
Teletype NY 1-928
to
Principal
Francisco—Santa
Offices
Barbara
things. Either they will
react sharply
in the imme¬
diate future or they will go
into a period of dullness. In
any event buying them here
would
to be inadvisable.
seem
[The
time
Rosa
Dr.
Carothers
rivalry
expressed in this
necessarily at any
views
do
not
with
coincide
those
the
of
Per
North.
100
OKLAHOMA,
Pacific.@76
Tel.@17% Apr. 11
Sunray Oil ..,@22% May 10
.'.@30% May
8
Building.
President;
...
Radio
Corp...@26
May 14 200.00
St. L. & S. Fr.@24% May 16 137.50
Gulf Oil
@54% Apr. 7 237.50
Atlantic Refin. @83% May 15 450.00
Amer. Distill'? @50
Aug. 11 325.00
Maracaibo Oil.@12% 5 mos.
175.00
Bond Stores.. @15% 5 mos.
112.50
@34% 5
mos.
325.00
in
the
Officers
F.
E.
—
en¬
Liberty Bank
F. Parrott,
are
Connors,
President; and T. S.
Secretary-Treasurer.
60
Vice-
Williams,
Curtis Lipton
(Special
SO Broadway. New York 4
Tel. BO 9-8470
Dr.
how
makes
Carothers,
fail
I
to
see
Military Training
solution to the diffi¬
provides any
culties
confronting
it
If
us.
in
end
may
is
it
weakening
strengthening
us.
i
ANGELES,
C.
Lindroth
of
out
Sen.
four
principles,
pool
a
of
trained
Use
manpower
ciently.
(4) Divide the
"democratically."
refers
effi¬
more
burden
of
war
the
to
academic
Military
Armed
Training
Services
Com¬
in
our
"empty generalities
example
gook"
Co.,
Lipton
338
"gobblede-
of
South
Vir¬
Curtis
Western
Avenue.
that the
therefore quite
have
Any dis¬
this
at
time
academic.
read
%/■>
>•
Dr.
over
opportunity to
an
talent the
find
the
has—"the
country
night brings out the stars."
The
ment
and
have
I
it
found
be
to
will
during
our
agree
coun¬
that
at this
particular time there is no
special need for universal military
training
men
a
long
so
of
quotas
month
a
also
the
as
50,000
quite
seems
present
to
65,000
being filled.
are
likely that
do
Investments
I
have
read
by
public
DENVER, Colo. —
is engaging in
business
from
Pearl Street.
a
that
Neil
offices
his
He states
that
went
down
that
interest
it
would
not
be
on
Amer¬
point
a
universal
permanent
a
as
I do
enacted
believe
into
the
it
law,
books
for
was
a
I
are
that many
sure
Carothers, I
Mistake," by Dr. Neil
am pleased to let you
know that I
am
of
am
the
uneconomical
the
of
strongest
Demand
torical
see
Diocesan
find
In
have
agreement
with
But
him
the
ar¬
more
than
in
paragraph
beginning with
the sentence, "The
first and final truth in this matter
is,
etc.,"
is the kind of dogmatic
statement
agree.
To
with
single
which
out
I
one
a
his¬
the de¬
country after
However,
operation
ture
has
it
as
quately
selec¬
a
which
we
the
past, ade¬
with needed
us
I have to be convinced'
that
there
will
developed
out
be
which Universal
soldiers
better
of
the
program
Military Training
Commission has projected. I have
been connected with the training
Army,
good many years
a
Navy
and
Air
Forces.
will make for technical expertness
in
the
have
functions
myriad
be
to
attached
performed
to
men
military forces
other civilian consultant'
than any
hand
our
the
have
has
I know from
experience
get
to
which
by
that
we
results which
from
the
we
program
been proposed.
/In the third place, I think
as
a
matter of national policy we need
to
keep the total number of
at
men
per¬
professional mil¬
minimum.
The,
a
professional Army we' would have.!
r-
I know that this
is
the exact op¬
posite of what the participants of j
universal
military training pro¬
argu¬
are
pro¬
personnel.
itary
whelming.
His
•"
.
am
longer universal military, training
goes on> the larger nucleus of a.
are
dove
in
supply
manent full-time
unassailable
n
place, I
convinced that
already had will, in the fu¬
being
Dr.
by
Carothers
see no
already exist.
service
which
wars,
I
the second
foundly
tive
na¬
pyramiding the inefficient
which
cannot
pre¬
sup-
pose but I have seen the extended
problems of organization which a
of
full-blown
in
require.
civilian
myself
to
this
very
operation is in¬
witnesses
'
Having read Dr. Carothers'
I
in
cies
heed
is consistent.
wars
their
by
whole
multitude
House, Boston, Mass.
hastily,
in
of
portedbya
NASH
Bishop, Protestant Episcopal
Church
it
sented
meritorious
REV. NORMAN B.
UMT
sequence
for
against it
a
delighted to
this
for
way
business
efficient and dangerous.
Va.
the arguments
wholly sympathetic with
expressed by Dr. Ca¬
publishing
WILLIAMS
Richmond,
mand
WASHBURN
am
The
ture.
in the United States.
Germany, which
ideas
you
in agreement with
thoughts.
Military Country,
expensive
the
preparing the country for an even¬
tual war. Military operations are
first
Worcester, Mass.
rothers and I
a
will agree
defeat, and I think
one
most
about
specific training programs which
Philadelphia, Pa.
Why It Is
ex¬
I suppose that I have set up more
Relative to the article, "UMT—
his
the
going
operations for
BERKELEY
that
to
the
points brought out.
opposition.
1377
reached
accept
system.
our
were
the
JOHN R. SCHMITT
conclusions
am
primarily
was
ticle
at
has
will
that
long.
Carothers.
others of your readers
on that.
Incor¬
Eleanor J.
securities
it
part of
Calif.
with
Dr.
sound, and I
in
Bliss
believe
not
Stevens
first
the
indicate clearly
military training
unit
universal
be
use
tary service with the high schools
WRIGHT
Pasadena,
FRANCISCO, Calif.—Mary
porated, Russ Building.
of
N.
for
made
perimental
system which would tie in mili¬
ican
y
Depart¬
has
that
military training
the lifetime of
I am inclined to
tit ajr
which the De¬
pretty much a review of the stock
objections which Americans have
President, Union National Bank of
Chronicle)
Financial
d g
u
I
Neil" p r o jections
in
CHARLES L.
With Consolidated Inv.
to
b
rea¬
In "tne
fense
ments
(Special
several
Carothers' article which appeared
in a recent issue of the "Chron¬
training military training
Piece.
SAN
military
training for
place,
where
military
gives the members of the armed
forces
best
op¬
univer¬
think
Congress.
its merits
of
as
...
Universal
an
one.
have
first
I
good
Bank
—
with
I
sons.
It
principles,
fundamental
as
be
sal
draft'
these
to
are
go-
largely
Chicago
try.
case
war.
(3)
is
to
g
cur¬
so
dis¬
any
icle"
Save lives and time in
Chronicle)
Calif.
is
n
the shelf for the
on
year
posed
Universal
bill
President, The Mechanics National
Adds
Financial
rent
that
National
STEVENS
military
training
mittee, we can assume that for all
practical purposes it is dead for
points
and
go.
Apparently the Congress has
made the decision to
put the whole
problem
of
universal
the
is
Morse's
Yalta, Tehran
must
SAMUEL N.
Since the House of Representa¬
tives has now voted to recommit
cussion
Provide
(2)
of
men
cussion
STERN
F.
Bank & Trust Co. of
-
Hogan, Sr.
grows
President, Grinnell College,
Grinnell, Iowa
sense.
Universal
President, American
reserves.
I
LOS
ginia
to The
Bliss Opens Office
11 embers Put & Call Brkrs. & Dlrs. Assn., Inc.
Like
three
days, 90 days and 6 month options.
THOMAS, HAAB & BOTTS
article
LAWRENCE
W.
it
article
the
me,
rather than
in
560
over
about $100,000
us
when
of
Korean woman
a baby and each
a
up.
Just
unadulterated foolishness. /
The
had to universal
(1)
it
this session of
RODNEY
Consolidated
Explanatory pamphlet on request
-the
scanned
To
tried,
to wit:
business
L. M. Smith is now affiliated with
Subject to prior sale or price change
We also make quotations for 30 days,
securities
a
offices
137.50
225.00
@50% May 9 275.00
Imperial Oil ..@37% May 7 287.50
Contintl. Oil..@64
Apr. 29 312.50
Homest. Mining@36% June 2 275.00
Sperry Corp.. .@31% June 2 287.50
Coca-Cola
@104 May 5 487.50
..
from
137.50
Colum. Carbon
Studebaker
in
gaging
May 14 $600.00
Inc. Tel. &
Pittston Co.
CITY, Okla.
Finance Corp.
is
Petroleum
Shares Plus Tax
Marine
and
we
further
Wayne
feel
OPTIONS
Army,
among
Dan
article
CALL
says:
the U. S.
They are presented as
those of the author only.]
Petroleum Finance Corp.
kill
Potsdam
J.
reading
&
the
prevailing
Chronicle.
SPECIAL
have
I
society,
will
stocks
to
and
look
forward
to
it more carefully later.
enter¬
He
baby is costing
in
or colleges
of the country might
go the best case for an
institution be
more acceptable to the
type of
higher. But before they do I
vitally affecting the future of this
thinking we have in this country.
also think they'll do one of
nation."
His comment here is a
article
Monterey—Oakland—Sacramento
Fresno—Santa
believe
two
Members
New
New
I
Bank
system,
which
bchwabacher & C(>4
INVESTMENT
as
prise
issue
population
It costs
With them will
President, Saint Joseph's College,
go the argument
for UMT (and the
Philadelphia, Pa.
cost).
HOGAN
article, "UMT—Why It Is
in
free
whole
S.
knowing what
City National
bitter
have
has bedeviled the
the
of
Very Rev. EDW. G. JACKLIN,
their
I
W.
Mistake,"
He
Pacific Coast Exchange*
c
by
Co., Oklahoma City, Okla.
In his
a
to me,
seems
quickly
President,
Trust
bankrupt
about 80c to have
plain
their will is."
academic interest to you.
Securities
it
the
all subjects upon which I
on
have the
confirm each other and make
Pacific Coast
of
population of 160 million
millions.
the kind of argumentation which,
said:
shall
such
s|s
sis
disap¬
or
competition,
principle or theory going
Some weeks ago this col¬
your way, it isn't a substitute
for profits. The discussion of umn recommended buying on
theories or averages may be weakness. Now that there is
interesting in abstract. Yet strength, consideration should
few people buy averages; they be
given to either sitting pat
buy stocks. And if the stocks or doing a little cashing in.
as "winning wars" and to
absolutely "no war has ever
been won by prewar training" is
say
Illinois District is fairly
defined
and, as
Abraham
avoided.
any
ment,"
un¬
have
proval of the legislation.
Navy, Air Force
foregoing isn't new.
sis
sis
sj!
Corps since
It has been quoted time and
1945 is an il¬
Secondly, for every buyer
again by more skilfull traders
lustration
of
there must be a seller. So ask
and analysts than this writer.
the inflexibil¬
yourself who is doing the sell¬ ity of the mil¬
There's hardly a holder of a
itary mind."
jungle share of stock who ing while the market is going
I think Dr.
hasn't discussed the famous up and ''everybody" is buy¬
Carothers
is
theory, quoting it and distort¬ ing. Here's a partial answer. wrong when
ing it all of its original mean¬ Selling in present day mar¬ he r e f e r s to
kets is best accomplished on this as rivalry
ing.
—it
is
really
*
*
❖
strength just as accumula¬
All the
are
or
a
people, the United States has be¬
come
bound by treaties and
by
military occupation to defend a
equip¬
this country.
Lincoln
=
Thursday, March 13, 1952
..
political (emphasis is on political)
policy of interfering with the af¬
fairs of other nations should
be
*
this column for
Cv
from
Rep. Vinson Changes Mind
point.
*
Walter
go up, there's
in pointing to
comfort
small
.
cannot
factor,
and
military
posts
who
that
now
of
viding
any
way
gressors."
the
Williams
of
way
under
.
huge professional officer
a
and
ficers.
plan
money without pro¬
security 'whatever
deterring possible
or
ag¬
So what?.
present
no
an even larger group of
professional non-commissioned of¬
Berkeley
enor¬
sums
in any
If
up
class
"as
planned
will cost
mous
would
program-
is
the program to avoid the building
declare
UMT
UMT
There
Administrations'
Furthermore,
we
would
have
under
no
way
the
of
avoiding the further encroachment,
the
of
and
military into our society
phase of life.
economic
Finally,
I
see
present situation,
nothing
dismal
in
as
the
it is,
Volume 175
Number 5098
;
.
The Commercial and Financial Chronicle
.
(1111)
to
justify,, the claim that UMT is
'national
a
will
We
have
not
time
to
trainer
necessity.
Therefore, I hope that the whole
program will be put on the shelf
the large forces needed after war
begins. We can be prepared with,,
the necessary strength either by
and will be
maintaining huge standing forces
Ho\
-,U.
kept there.
f
from
vT
Oregon
•
Dr.
Carothers,
the
will observe
as you
enclosed
reprint.
ator Morse set forth Tiis
[Senfor
reasons
favoring UMT
in
an
article
published in
the
.
terian Life" of
in
The
that
"Con-
a
gressiona'l
Record"
Jan.
21.
article
The
the
agreed
'«
the
that
casualties
Sen. Wayne Morse
^tfre
have
, .
served
validitv
I?
shall's
of
.
.
to
empha-
Genpral
called
to
wi11
;n<!]ir~
In his capacity
Secretarr of Defense
'We
told
the
Senate
last
Armed
January:
with
a
TnOdrlsduchtunpredic0t£aMUy that,
unpredictability thaTwe
and such
we
must be
prepared for effective action, whether the challenge comes
with the sneed of sound
Few
responsible
that
argue
munism
is de-
or
lifetime."
a
the
citizens
forces
will
gressionifpossible^ndbywarif
•necessary, unless the Soviet die.tators are .persuaded- that such a
would be unsuccessful.;
course
build up,and maintain our
we
guard
security,: and
our
at
the
time preserve our basic freedoms and democratic-institutions?
While
tinue
our
to
country
strive
for
must
settlement of
of world
tension; it
that;
military defenses
,
;
the
on
causes
plain to
seems
we: cannot
con-
honorable,
an.
peaceful
me
ect
vneglect
our
hur
hopefully.as-
sume
that the aggressors will be
inclined to negotiate while we 'are
in a state of military unprepared-
ness.
A
::
hpfnrp
ap0
they
will
....
;
,.
assigns men
for
which
The
result
.
e
,
°are
thev
is
not
waste
of
.
defense
is
one
the:
poor will bg trained alike
and
•
.
placements
and
in Korea,
came
problem,
as
cause
it.
detail recently
ould
s
promptly
as
be
put
into
possible, beL
will—
-
:■-s
<■»■•
.
•
r
(a) Provide in the shortest possible time, and at less cost, a
pool
f
of trained
ly
'
that
reserves
maintaining huge stand-
ing forces;
(
quick-
can
be,,called^ into active service
-instead of
(b)
event
;
•>.
.
^
.
Save lives and time in the
of,
because
war,
the
basic
| training .provided
by UMT will
^Quip our men 'to deal with the
i
dangers
of
combat
more
effec-
tively and quickly;
>
in
World
them
the
were
reservists
the
National
War
II.
Thousands
now suffering a second
disruption in their lives
and careers, because of
sighted
policy
younger
the
to
of
in
to
men
defense
our
not
the
answer
of
short-
preparing
use man-
ineauities and hardships re
inequities and hardships resuiting from our hit-and-miss policies in the past can
be
avoided
-and
by
Rpsptop
in large part
balanced
.-a
nrn^ram
UMT
!ier+Ha?elpiYf0Iie^anwill be
uTT
so that each
man
.
more
#
apt to be assigned to the oob
for which he
(d)
.
is
Insure
fitted;
that
.
the
,
„
defense
of
our
country
is
in the democratic way;
•
"
of
'
"
Aid in the problem of civil
defense, should
:
shared
country be attacked, by making available, in
evory part of the land men trained
to.meet
our
If
Van
R.
biaKe
"This
says,
,
,
,
trained manpower,
this
a
voca-
patriotic life of
a
travel,
and
romance.
properly used, conbe abandoned in
were
war
has
war
training."
been
conscription
in
true, and that
exactly what
farms
hnmpc
far-
an°
availabl^^^time of'need
®
advocates of UMT waht to avoid.
Rtif iuhat dn
wp
to college and
scription
peace
m
have todav?
Con-
L,on
hrsT'ume "in Th"e
history Vf'this
boys'- are taken against
their will and compelled in peace-
country
fiaht'in
+n
That
Knrpa
is
historically and in fact un-Amermntfarv
tn
tradi-
nnr
™
ing; how
of
^.SPP
r.vixf?:
•
UMT
*™/rrr.
is like
1.1.
compulsory
education.
eaucauon.
That,
inai,
secon-
too,
pre-
have
many
lack
of
training?
survived
many
j like to tWnk there is
economic
purpose,
because
greater
nQ
otherwise,
or
than survival of the greatest
ber of men who
asked to de_
(end us And
t whatever the cost
num^
are6
,
.
What
more empty generality can
state:
"This
na-
tion has managed to win all
ite
wars
T
without UMT." In
HlcTArir
in its h^tory
tbe
grea+
TTTV/TT1
\tnthmif
onlv
tw
have
while
fought
was
was
we
"
foreign
wars
hare
we
had
t
prohibitive,
~
a front line for us
trained. That favorable
economist should be
laoior an economist snouia oe ^
flrst to admit does not exist today
.-4.
^He states ,1that it is obvious that
politics
framed the UMT Bill,
He should know that the Hon.
James <1. Wadsworth ucsavcs iai
J. nduswunu deserves far
firstforefathersbecause the cost to more
opposed
our
looked
lcan and contrary to our tradl"
"No
by
training?
can go on
them to obtain a college education
and a'omrmssion in the Reserve,
dary
aary
How
by
says:
won
a,lies h°lding
a
pursue ROTC trainan onoortunitv for
nrovides
For the
times.
Iac
He
boys have lost their
lives because of inadequate train-
ir»
and
nomes,
^ f^iaoie
(6) For the boys who
we
Dr
equaAy
an
many
there be than to
-
thpir
That is
Europe."
is
reservists"
been
ever
won
How
could
For those who must return
*
to
-
in
short period of time.
(5)
./
coun-
the
appelations
Patriot,
Economist, Military Expert, than
tions. We advocates of UMT want
to substitute as gradually and rap-
TTiv/rrr
for
UMT.
^
.
.
.
ures necessary to Pfoteot Jlfe and
Property agmnst the destruction
of atom bombs.
The proposals of
Security
Training
the
National
Commission
make adequate provision for safeguarding
the welfare and morals
trainees.
Gf
train
their
.
Those
youth
our
selected and
fn
one
will
assigned
to
be carefully
thoroughly instructed
responsibilities,
with
the
making-the training period
of mental and physical growth
young
our
know
men.
there
is
"
^
no
easy
way
to lasting
pe^cg, no sure formula
for preventing war and no magic
^^
words
we
can»voice
of
0ur
attack.
to
a
sure
JJnless
defenses'
we
^
dispel the
aggression.
preparedness-^
vite
[hoc
That
haorl
been
has
at
But
way
we
un-
to in-
build
increase
up
the
likelihood that boys of today and
tomorrow will have to take up
arms
as
fathers
unprepared as
before them.
were
their
UMT is
one
this countryr^
1
United
States
random
a
100
18-
,
the highest level only. Most millJ" "'"me77re"oBDosed"7o "UMT gainfully and regularly employed,
Th
d
not want training and a ™ buy him a new hat
Eighteen,,ivilian
and
year-old
The
op-
much,
me of
Thev
reserve
h
nQW
the
skills and a large fraction of them
want
conscription.
of UMT remind
boys
cannot
haven't"
-
many-
do
very
prohibition
have
conscription
in
peacetime.
have the draftees, not just
They
training
for service,
Why change?
fighting
but
for,
As
engineer, I share Mr. Carothers' high regard lor superior
"ally unemployed, and when we
are
continually
reducing
the
work-week and increasing the,pe"od of■ traimng required for the
job, loss of
by
an
few hours of work
18-year-old
boys
does
not
worry
y
What
does
y
worry
equipmentybut he neglects to take
e things lnto consideration.
6
/1V
,
„
,m?^baye a?
bombs
H
and
bombs
\
be
the
in
much
—
with
foot of this earths surface
a
(2)
have
doughboy there
bayonet in his hands.
you
„
a
1
This infantry
work
is
wants
everything and
large proportionately as it once
but fit is still essential. If
this were not so, what is stopping
train
so
thev
can
^ntl ILhev
fight
, agree that the
,ike
the
Rochester,
N.
..
is
inflexible
]Jif'
an
a/cenerj
{such
Dwi?ht Eisenhower for UMT? The
toTihSS
things that Dr.
have
Us
have.
those
te
Carothers
Or should
things
would
we
toQ
xf,
{a®y?
elim-
because
,
...
adV0Cated by the mih"
'can," "militaristic," "totalitarian "
'mpnt. nf ,ih'
" "J."
_
tJL,
,
anLnrc
His arptim^nf
.
..
?P,
in h
^
V^1fl1
Y
if
PP!d oamPcr the training
of n trained
more skilled mechanics, techni
*
mnrp
than I to evaluate
that question, yet I
,
x
mpn
better position
Y.
_
find
,
military mind,
academlc
PncinPPr
men, more engineer,
and scientists. He should be in ;
President, The Todd Co., Inc.,
I
the
.but does that fa
cally trained
GEORGE L. TODD
wag)
'
tainly not there alone.
any-
v
t0r 0Ur COUntiy It tney murt
must.
not
ag
f0
winning
burgh, Wilmington, Oak Ridge
,and Los Angeles, but most cer,
world but it is still true that from thing, but nobody wants to fight
a. military or political point ot for this country. In fact, it is beview you ^never control « single ginning to i00k like nobody even
...uu
of
DeAr<?it)
is
me
be preachers, teachers, doctors,
engineers, lawyers, scientists, manufacdurers
hope
our
a
very
me
that
agree
industrial
are either in college or are learndays always lined and voted with >nS a trade.
Besides, when we
the bootleggers
The militarv per- have over 2,000,000 adults contin,e who in
myself leaning -strongly
onewith
in
am
a
good
Industrially, I am concerned
just those probIemSi «rid
us 1n Korea? Furthermore, this in favor of UMT and unimpressed
ie'intir Lam ^
SOrt °f work can be done onIy by by Dr. Carothers' argument, much cerne(j as a father of
under :
youn& men
Hence we must have nf „,hiph
tn
tn hp self
cerrJeaaas a latner ot an underLcf 7
of which seems to me to be self graduate who might have been a
first a professional
an
qppit.c
Army,
and Air Force of
a
trained
ian
army
course,
reserve
of
young
cancelling.
young
men.
.
Russia's
Cnina's 30,000,000
ers
We, of
25,000,000
but
men,
has
or
are.
and addresses
mg
now,
could
relatively
be
called
short
bombing will permit
have
n0
in
upon
time.
irnnw
less.
speciai quarrel with
mnph
know that much
nvpr
over
Army's officers did
50% of thp
the
come
nf
George
L. Todd
reason
for the
France
of
in
not
and
military authorities in and out of
are
es-
only
that
difference
because
of
I
could
better
see
was
financial
doing.
which
we
tary
to
manpoWer
make
our
avowecj enemies respect us.
...
...
a
xl_
a
„
most
civilian educational colleges.
I
have been on the Board of Visitors
to both West Point and Annapolis,
their curricula today
under
weening
defeat
from our
sentially the same as those in our
civilian engineering colleges. The
system
trying to find adequate mili-
.U should be noted that the En-,
£lneering Manpower Commission
of the Engineers Joint Council is
statements
in concerned not with UMT's effect!
regard to the on .training an available pool of;
purely mili- engineers, but on what might be
tlrv aspects of tbe recalA status of reservists. - Iq
nnp^tinn
view of the eminence of this orHe
finds the ganization, is that not deeply sigs
a
Mr- Carothers' proposed reforms—
except that he apparently does not
are
he indulges in
Atomic
no
present
pre-
a military
the
have, who
already assigned to units and
who
j
we
no
it not for the
were
u~ harassment and insecurity of the
he
authority," yet
at least 5.000.000 reservists whose
names
"f i
states
tentions of be-
we are
going to need, and do need
good engineer
and
men
at home—a civil¬
cannot, should not, try to
match
mn
Navy,
emergencies.^ ,Y'.,..*/
important measure that we should status they did a better job than
analysis, n^tipnal de- adopt now. in order .-to preserve most of our. civilian schools are
on
with
ong
scription
Leer
a
In the last
fdnse rests
a
adventure,
-
(e)
'
in
act-
emergencies
n°w 10 aci in emergencies <and
ana
who know something of the meas-
dangers
burden
'
and training
care,
tion
Dr. Carothers
square
-
Sbl°-4ft. J3unJry be
^tack^> ^
cl£n Y
^havej:^yery ^sertion ot the
We
gency
,
cal
the
out
their^^ country.^-
The
efficiently, as the cap- for
abilities of UMT trainees will have
-
ar-
fallacies of his
call
aim of
(c) Make it possible to
forces where they will receive the best food, clothes, medi-
are
major
:power more
;
point
until
Commission set up by law to study
effect
Carothers'
trained
trained for what?"
armed
re^
source of trained
members' of
i
by the National Security Training
*
Mr.
church
'
more
these young men a voluntary period of three years' service in the
tide,
I
shall
attempt to
emmjency corn^^fttoMj-oA
ents
evres
will be shared im-
gation
parUally.
Ff !?J?^PeCL to.I?andle
"?ir
disaster
;
in
occur
fied
every trainee
The burden of
The burden of
Men who have received military
military
training
excellent opportunity to sell to
an
In the order
of
but ,w4e /hal1 never have a he does that of politician,
complete, democratic and adequate
I agree heartily that senseless
talents, not to mention thererious £l7a7poss7bIe aTr^g program
^defen* ot^urcountry rivalry and waste in the services
ef^t 'o^ morale. With a^UMT aad a civilian army in beini for
moralf With
UMT is put into effect.
should be eliminated, and that
on
®
followed Dy particioaMr Carothers computation of
program,
Pr°gram, ioiiowea by parucipa
f°N°wed bv parucipa- the conscription which we have the labor man-years lost is not productive energies of the country
ic
should be brought to the maxi"a'"d'*^br*J. iV'wron'B
tlon ln an efficient system of Re- today and which
wjong
serve
training
there
would
be
Mr- Carothers makes much of
abusing but grossly in error, mum, but those things alone do
tfme for the DropCT ciassuicauon the military brass who have testi- " he can find anywhere m the not provide a strong defense. I
uie proper claTsiHeation
tasks
training
universal
all young
military
(4) It offers the Armed Services
seen.
f:mp,
; .program,.as approved in principle
by the Congress last year and recommended in
have
I
papers
basic
which is good for him whether he
ever has to go to war or not.
most
as are
for
same
-
have had ade-
,
W^the the main
can
est
It would give to
the
men
pro-
is democratic and is re- generalized question: "Trained for
all young men physi- what?" In
advocating nontraining,
isn't it equally fair to
say: "Un-
10 ;me*f Iarms,
combat
When the attack
The
issue ; presented
threat of Communism is this. How
(3)
intellec-
the
accuses
of
cally fit.
tories it provides that opportunity, ™
H"da 1fluently'heard' is"had
■
-
quired
pool
from the .evils of militarism and
serve
to
(2) It
.
Carothers
Carothers counters with
try was settled by people escaping
of
is
ag-
thj
t
quently had that opportunity).
war
the military too often
to
free-
our
•jugate the world—by rindirect
.
not
j
is
sions.
7ay: Kremlin 1 have no doubt which should the upon all alike
°£ 1U«:
fall privileged and
the
out to sub- Under UMT,
that
and
tually dishon-
are
J;"111-™ Iie9ueniiy neara is mat
Com-
of
threat to
no
are
At
presen-
Nation
way
Dr.
ponents of UMT, specifically
Wayne Morse, of empty generalities.
To the desirability of "a
unnecessary
avoided if the
event
be
T
suited
layed for
J h
honest
argument and
hazards of warfare
,
General
confronted
are
Mistake" is the fair
his conclu-
of
that
"UMT—
1^?ur1e *hat before men are Hut what do we have today
committed
United States and the rest
Marshall
a
deal
preparedThrough
Services Committee
>
great
appraisal of the danger rmve'been
basVc
imperialism presents and technical
training to meet the
of the free world.
as
a
quate training. The UMT program
Mar-
i
the
why It Is
article
est Presentation of the opposition
standing force
a
the
in
will
Communist,
to
cost
numbers
great
men
year
would
to maintain
I
as
interfere with a boy's high school
or college education (if he subse-
carothers'
r,
world
si7P
$4,000,-
Civilian and military leaders
and
last
year's cost of such
approximately $2,000,000,-
It
advantages of UMT,
them, are these:
(1) It would not in any
in which they
Security Training
tentatively estimates
first
The
see
Dr
-
and
of similar size and readiness.
in
elsewhere in
during
basic
National
at
more
-
Korea
between
training.
the
000,
—
Events
.
program would be about
cost
reads
Editor.]
.
000,000, and the recurring annual
of
follows.
as
divided
Commission
by him
the
program will
UMT will provide an annual
flow of about 800,000 men into the
various Reserve components.
All
will have had six months of training,
Jan. 19 and in¬
choices
reserve
permit us to mobilize swiftly at
less cost.
;
technical
"Presby¬
serted
Jh
a
UMT and the
My views differ radically from
from
5
WAYNE MORSE
•
,
Senator
S.
.
BLAKE R. VAN LEER
President, Georgia Institute of
Technology, Atlanta, Ga.
39
1870, 1914 and 1940.
He categori-
cally states that the next
be
won
with
uniform to the contrary.
the
war
will
men,'leading
He states
why
Germany has
been twice defeated, overlooking
the widely accepted theory that
reasons
nificant?
I bope
some economist will
nary system of taxation, the
then been militarily strong
there would have been no German
g°fs Of
aggression.
trial thinking.
had
we
re-
Ply to Dr. Carothers. I hope some
qualified economist will find himseIf startled by Dr. Carothers'
statement that the economy of
France that led to its defeat in
I8™, 1914 and 1940 resulted from
conscription rather than from the
combined effects of its extraordiSocialism,
most of all,
its
and
mng-
perhaps,
medieval
indus-
40
The Commercial and Financial Chronicle
(1112)
The following statistical
Indications of Current
latest week
Business Activity
AMERICAN IRON
indicated
XP'-
Week
'
(percent of capacity)
operations
or
month ended
on
Mar. 16
101.8
Month
Ago
that date,
Steel
Ingots and
castings
tons)
(net
Mar. 16
to
runs
(bbls.
average
•vlarstills—daily
Mar.
Mar-
(bbls.)
average
-Mar,
Mar.
Residual fuel oil output (bbls.)
-Mar.
Stocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at
—Mar.
Kerosene
output
(bbls.)
Distillate
fuel
output (bbls.)
Kerosene
(bbls.)
——-—
——
+
(bbls.)
at
oil
(bbls.)
at
ASSOCIATION OF AMERICAN
6,365,800
6,225,300
6,016,350
:
6,552,000
6,596,000
21,566,000
20,489,000
2,630,000
2,662,000
3,043,000
Natural gas
10,552,000
9,866,000
9,717,000
Manufactured
1
11,072,000
9,704,000
9,024,000
8,891,000
9,630,000
Mixed
l
142,787,000
141,765,000
135,894,000
138,582,000
1
1
1
16,683,000
*17,669,000
20,101,000
52,489,000
36,441,000
55,055,000
62,390,000
47,560,000
37,111,000
38,076,000
1
755,624
683,368
731.006
785,861
l
690,900
662,201
671,060
742,553
$296,645,000
$165,676,000
$167,130,000
and
147,063,000
75,248,000
86,935,000
6
149,582,000
90,428,000
80,195,000
Bituminous
Mar.
6
110,650,000
48,249,000
52,464,000
57,393,000
6
38,932,000
42,179,000
27,731,000
37,593,000
Pennsylvania anthracite
Beehive
coke
Mar.
1
10,290,000
♦10,215,000
10,400,000
STORE
TEM— 1935-89
Mar.
Mar.
1
807,000
852,000
139,600
138,600
148,500
Mar.
INDEX—FEDERAL
SALES
All
Electric
1
24o
240
242
288
kwh.)
000
jrATLURES
(COMMERCIAL
STREET, INC.
^
SOON
COMPOSITE
AGE
-Mar.
INDUSTRIAL)—DUN
AND
7,496,710
8
Pig
iron
Mar.
PRICES
Electrolytic
(E.
170
6
M.
„
building
Total
Lead
(St.
Zinc
(East St.
Louis
153
BOND
DAILY
$42.00
24.200c
119
123
29
31
35
26
28
27
8
9
18
32
32
31
27.425c
24.425c
5
19.000c
19.000c
19.000c
17.000c
Hospital
18.800c
16.800c
19.500c
17.500c
5
18.800c
5
19.500c
19.500c
__Z
114.85
Social
Farm
Mar. 11
112.56
112.75
113.12
Mar. 11
108.52
108.52
108.52
113.70
Mar. 11
103.80
103.64
103.80
-Mar. 11
106.39
106.39
106.39
109.06
109.06
109.79
114.08
Mar. 11
113.12
113.31
113.70
All
112.00
Mar. 11
117.20
Industrials Group
utilities
2.73
2.73
2.91
3.00
2.98
2.96
Aa
Mar. 11
3.03
3.02
•
private
Mar. 11
-
Orders
received
REPORTER
sales
Number
Odd-lot
PRICE
FOR
EXCHANGE
(customers'
THE
ON
N.
OF
200,560
173,186
236,845
345,004
Private
211,365
205,239
245,830
Public
short
87
85
105
355,934
405,520
758,562
other
7
142.7
143.4
145.4
154.1
short
Customers'
Dther
DOTAL
1,129,949
873,386
$42,439,981
$33,312,942
$53,153,912
$37,903,344
Dairy
Feb. 23
23,513
21,955
32,777
29,026
Feb. 23
217
132
142
273
Feb. 23
23,301
21,823
32,635
683,497
606,221
939,882
Total Round-lot
Short
5,175
10,144
IKKJND-LOT
CEPT
/
602,018
934,707
804,372
$30,255,711
$26,147,141
$40,273,722
$33,621,857
185,160
170,330
248,860
244,690
Total
SALES
ON
THE
STOCK
NEW
YORK
ODD
LOT
DEALERS
443,300
290,040
AND
216,920
286,500
331,420
362,670
5,556,030
7,914,370
8,593,880
9,207,890
5,772,950
8,200,870
8,925,300
9,570,560
the
155.3
185.6
139.2
133.2
electricity and refrigerators
Gas and electricity
145.0
144.9
143.3
97.5
97.2
Other fuels
206.8
206.6
202.3
156.3
156.3
152.0
209.0
210.2
207.4
169.6
169.1
162.1
12,906,000
♦12,907,000
13,056,000
7,323,000
*7,324,000
7,254,000
5,583,000
•5,583,000
5,802,000
157.5
*157.6
444.1
♦433.9
426.0
15.908.000
Fuel,
97.6
Ice
House
furnishings
Miscellaneous
EMPLOYMENT
the
AND
PAYROLLS—U.
LABOR—REVISED
S.
SERIES—Month
goods
Nondurable
of
i
goods
Employment Indexes—
All
manufacturing
manufacturing
number
878,490
188,300
201,000
Feb. 16
430,450
696,110
730,260
731,350
Durable
542,020
847,970
918,560
932,350
Nondurable
All
of
manufacturing
109,610
189,100
210,050
205,110
13,300
14,500
15,800
15,250
105,000
196,500
241,100
242,150
211,000
256,900
257,400
Railroad
222.586
321,685
376,628
347,905
Feb. 16
24,170
42,940
54,290
55,160
Feb. 16
~
250,417
288,794
457,427
417,320
Feb. 16
274.587
331,734
511,717
ZZZZZZ—Z
Z
;
~
sales
S.
DEPT,
Banks
1,315,875
1,470,078
OF
AVERAGE
YIELD
I
-
1,413,505
870,216
Feb. 16
149,040
209,300
258,390
271,410
Feb. 16
785,867
1,181,404
1,428,787
1,390,820
Feb. 16
934,907
1,390,704
1,687,177
STOCKS—Month
of
(24)
^50
As of Feb.
Net
balance
—
annual
111.7
:_.Mar.
4
106.2
106.3
Mar.
4
111.7
112.5
Production
Mar.
4
112.6
112.4
rate
I
♦Revised.
jNot available.
and
foods__ZZZZZZZZZZ.ZZZZZ.Mar.
4
112.4
112.7
^Includes 559,000 barrels
of
foreign crude runs.
OXIDE
of
(BUREAU
$259,813,143
$255,958,193
3,879,414
5,382,150
$255,933,729
$250,576,045
2.310%
Shipments
Z.
ZZ_Z
_
ZINC
6.27
AND
omitted):
29
debt
3.5*2
5.53
$255,323,766
DIRECT
4.43
333
5,075,105
DEBT
4 41
$260,398,871
GROSS
GUARANTEED—(000's
General fund
*
5.64
5.13
ZZ
STATES
111.4
foods
other than f$rm
5.94
'
341
(10)
(200)
4
Mar.
Z
-
All commodities
6.53
6 03
5 49
(15)
Insurance
Average
Computed
products
Processed
557
Feb.:
(125)
(25)
1,662,230
LABOR—
commodities
Meats
7,072,000
OF
Commodity Group:
)
8,717,000
6;35
COMMON
UNITED
Feb. 16
SERIES —U.
200
WEIGHTED
472,480
of members—
account
sales
All
15,789,000
*8,988,000
*6,914,000
5 81
goods
•15,902,000
8,996,000
6,912,000
__
goods
Industrial
118,300
MOODY'S
futilities
:
159.4
>
employees in manufac¬
turing industries—
883,400
floor—
sales
Farm
198.5
DEPT.
manufacturing (production workers).
Estimated
(1947-49=100):
.
340.6
139.7
151,860
Total purchases
;
214.1
346.8
—
Feb. 16
PRICES, NEW
191.5
236.5
floor—
sales
Other
oils
216.7
171.5
805,090
sales
Short
184.3
157.8
Feb. 16
for
202.6
186.4
Feb. 16
transactions
185.4
265.5
213.2
206.8
111,570
Total purchases
Total round-lot
221.9
274.6
185.9
Feb. 16
sales
181.5
190.4
241.4
vegetables
Rent
538,020
-
Other
189.1
215.8
products
232.2
190.6
273.8
bakery
204.6
—Feb. 16
sales
Short
15:
346.7
and
Feb. 16
off
CITIES—
Jan.
-
All
registered
are
:
initiated
of
Payroll indexes—
SPECIALISTS
___—
sales
LARGE
as
—
and
Feb. 16
purchases
77,753
December:
MEMBERS, EX-
___;
on
IN
products
Feb. 16
initiated
260,630
MODERATE
Sugar and sweets
OF
Feb. 16
OF
___-
sales
W&OLESALE
276,970
Feb. 16
—
-
FOR
—
Durable
specialists in stocks in which they
transactions
Total
353,740
Feb. 16
sales
Other
Total
2*44^690
FOR
!
sales
Total
Fats
All
sales
Short
Other
248,860
STOCK
TRANSACTIONS
_
transactions
Total
170,330
(SHARES)
purchases
Other
Total
Other
of
185,160
sales—
THE
338,433
154,928
t
.
FOR
Short
•
dealers—
TRANSACTIONS FOR ACCOUNT
Transactions
4,203
676,056
Feb. 23
sales
and
Clothing
.
sales
Total
7,441
Feb. 23
sales
Other
932,612
332,731
232.4
Fruits
814,516
Feb. 23
ROUND-LOT
$1,271,045
723,139
487,659
222,341
,___
$1,210,798
374,032
—
Beverages
28,753
Feb. 23
Feb. 23
MEMBERS
$788,429
414,397
INDEX
Eggs
sales)—
total sales
!
STOCK
AND
5
of
.
,_
FAMILIES
Meats
Feb. 23
OF
49
4
189.1
736,039
sales
EXCHANGE
9
59
151,691
Cereals
886,133
of shares
ACCOUNT
10
29
EN¬
foods
31,129
Feb. 23
ROUND-LOT
—
Month
—
items
38,975
Feb. 23
by
CONSTRUCTION
municipal--
PRICE
26,181
sales
purchases
52
51
construction—
CONSUMER
32,096
sales
Number
65
45
omitted):
1935-39=100—Adjusted
Bound-lot sales by dealers—
Number of shares—Total sales
Round-lot
75
9
development
NEWS-RECORD
and
Feb. 23
value
Short
55
44
Federal
All
sales
other
32
24
125
3
and
(000's
INCOME
purchases)—
sales
Customers'
37
21
construction
State
-
All
sales
Dollar
83
355,197
ODD-
Number of shares—Total sales
f
1
1
COMMISSION:
(customers'
31
112
32
115
service enterprises
construction
—Feb. 23
orders—Customers'
212
83
123
30
*
public
ENGINEERING
193,579
STOCK
Y.
value
purchases by dealers
267
institutional
water—
GINEERING
Feb. 23
Customers'
,
CIVIL
1
:
Customers'
and
public
February
Mar.
ODD-LOT ACCOUNT
THE
SPECIALISTS
AND
251
INDEX —1926-36
orders
Number of
524.1
1
Number of shares
Dollar
442.5
,-.
dealers
by
of
433.9
Mar.
100
EXCHANGE—SECURITIES
Odd-lot
437.9
Mar.
DRUG
DEALERS
3.06
other
Mar.
at end of period
BTOCK TRANSACTIONS
LOT
2.79
30
2.95
2.97
5
451
67
75
Conservation
All
Mar.
;
AND
=
3.18
2.99
6
652
325
Miscellaneous
Total U. S.
(tons)
Unfilled orders (tons)
AVERAGE
3.22
3.00
3.37
ASSOCIATION:
(tons)
PAINT
3.37
3.22
Mar. 11
INDEX
Percentage of activity
OtJj.
3.37
Mar. 11
5
„
3.21
20
33
173
66
Highways
2.97
3.52
Mar. 11
PAPERBOARD
Production
3.25
3.53
Group
COMMODITY
NATIONAL
3.25
3.52
Mar. 11
Group
Industrials Group
MOODY'S
3.25
Mar. 11
A
Baa
30
29
203
594
building
and
76
226
27
Other nonresidential building
Military and naval facilities
Sewer
80
262
183
utilities
Educational
2.80
3.20
Mar. 11
_i
17
23
V
25
telegraph—
Industrial
2.76
Mar. 11
Aaa
75
75
Nonresidential building
2.93
46
123
.
235
*
construction
Residential
2.47
3.17
3.19
24
-
public
other
Public
AVERAGES:
2.72
institutional—
._
Hospital
-Mar. 11
and
.
construction
Other
109.24
Group
recreational
Railroad
117.00
A
and
Telephone and
117.80
Baa—
Bonds
.
Miscellaneous
18.800c
113.89
Group
building
Educational
179.500c
113.50
Utilities
121
and garages
nonresidential
121.500c
Mar. 11
Public
83
60
39
27.425c
Aaa
Railroad
135
750
44
121.500c
AVERAGES:
corporate
193
827
38
121.500c
114.46
Average
384
1,513
.
35
5
100.39
DAILY
17
404
(nonfarm)
Religious
96.66
YIELD
13
_____
,____
restaurants,
24.200c
24.200c
109.97
BOND
13
399
(nonfarmi
Warehouses, office and loft buildings
24.200c
27.425c
Mar.
Bonds
Government
57
millions):
(in
alterations™
5
5
96.53
S.
650
OF
Commercial
$52.72
$42.00
109.60
U.
720
,52
DEPT.
;
Nonhousekeeping
Nonresidential building
$52.69
$52.72
4
96.76
MOODY'S
$1,969
1,472
600
S.
units
and
$43.00
4
109.42
Public Utilities
$2,124
665
73
dwelling
$42.00
4.131c
Mar. 11
Railroad
75,551
S.
of-
etc
February
building
$52.72
4.131c
Mar. 11
Aa
292,865
66,590
1,379
U.
Industrial
4.131c
-Mar.
-
at
PRICES
447,777
180,742
207
of
-Mar.
-Mar.
at
Government
S.
$816,193
287,642
$1,973
alterations,
construction
New
Average corporate
U.
$534,974
VALUA¬
THE
construction
new
Public
MOODY'S
76,446
55,914
OF
LABOR —Month
CONSTRUCTION—U.
Other
at
)
11,117
55,760
135,535
PERMIT
AREAS
OF
Mar.
Mar.
Louis)
69,380
Stores,
(New York)
(New York)
80,937
73,403
26,703
70,442
(tons)—
83.205
77,448
26,551
.
construction
Residential
6,794,517
copper—
Lead
of
nonresidential
BUILDING
QUOTATIONS):
J.
(tons
lbs.)—
residential
4.131c
4
Mar.
refinery at
Export refinery at
tin
134
163
Mar.
Domestic
Straits
7,455,509
Mar,
—
ton)
&,
156,264
of
(000's omitted):
Additions,
PRICES:
Scrap steel (per gross ton)
METAL
234,838
199,072
220,608
URBAN
Additions
1
(per lb.)
(per gross
Z: 7,415,966
BRAD-
&
.
Finished steel
4,743,234
234,962
$412,057
2,000
DEPT.
LABOR—Month
INSTITUTE:
(in
output
5,134,336
137,515
77,296
S.
Private
XOISON ELECTRIC
INC.—Month
5,076,636
4,74T),049
154,900
-
all grades
output,
(tons of
IN
U.
New
SYS¬
RESERVE
100.
=
5,645,436
693,000
1
793,000
137,900
(tons)
AVERAGE
14,445
5,255,574
,
INSTITUTE,
smelter
December
11,363,000
(tons)
DEPARTMENT
62,740
11,660
month
therms )_.
(M
CONSTRUCTION
TION
—
New
BUREAU OF MINES):
and lignite (tons)
coal
For
therms)
sales
gas
Stocks at end of period (tons)
Unfilled orders at end of period
S.
(IJ.
—
2,000 lbs.)
94,986,000
-
OUTPUT
72,647
9,028
February:
163,899,000
municipal
Federal
Ago
72,246
i
sales (M
ZINC
Slab zinc
$258,885,000
6
Mar.
.
construction
State
COAL
6
Mar,
-
November
sales (M therms)
gas
AMERICAN
38,068,000
therms
(M
BUILDING
i
-
Year
Month
January:
Total gas
12,794,000
1
1
-Mar,
construction
of
(short tons) end of Nov.
ASSOCIATION
6,599,000
—Mar.
construction..
U. S.
Public
of
GAS
21,528,000
RECORD:
Private
Previous
MINES):
NEWS-
ENGINEERING
—
AMERICAN
22,281,000
2,359,000
Mar.
freight received from connections (number of cars)
CONSTRUCTION
of that date:
primary aluminum in the U. S.
116,816,000
Mar.
Revenue
OF
tons)—Month
Shipments
freight loaded (number of cars)
ENGINEERING
6,367,200
1
1
1
RAILROADS:
Revenue
Total
(BUREAU
(in short
2,001,000
Mar.
oil
fuel
4CWIL
2,079,000
Mar.
Mar.
at
Distillate fuel
Residual
2,104,000
are as
either for the
42
of
Gasoline output (bbls.)
oil
ALUMINUM
Stocks of aluminum
output —daily
gallons each)
Crude
2,114,000
INSTITUTE:
condensate
and
of quotations,
cases
are
Latest
Production of
PETROLEUM
oil
Crude
Thursday, March 13, 1952
Month
100.1
Equivalent to—
AMERICAN
in
or,
Ago
100.1
101.3
.
production and other figures for the
cover
Year
Week
.
Dates shown in first column
month available.
or
Previous
STEEL INSTITUTE:
AND
steel
week
tabulations
.
OF
2.311%'
2,224%
MINES)—Month
December:
(short
tons)
(short tons)
Stocks "at end of month
♦Revised figure.
15 889
12^969
(short tons)
2L433
17 190
•
20,170
12645
20.256
24 513
9,911
tNot including American
Telephone & Telegraph.
•
rV
•**
4
4V
*•*
«■
41
J-.
Volume 175
Number 5098
.
.
.
The Commercial and
Financial Chronicle
7
i
,
r
■
*
(1113)
Securities Now in
^ Alhambra-Shumway Mines.,
San Francisco, Calif.
Inc.,
Registration
par common stock
.
March 5
(letter of notification) 700,000 shares of capital
(par 10 cents) to be offered for subscription by
stock
stockholders of record March 6.
Price—Five
share.
Proceeds—To pay obligations and for
cents
per
operating
Office—681 Market St., San Francisco
5, Calif.
expenses.
Underwriter—None.
i Allied Kid Co., Boston, Mass.
March 11 (letter of notification)
25,000 shares of com¬
mon stock
(par $5). Price—At market. Proceeds—To
Estate
of
Jackson
F.
&
M.
Agoos.
Underwriter—Paine,
Webber,
Curtis, Boston, Mass.
it American Air Filter Co., Inc., Louisville, Ky.
Feb. 28 (letter of
notification) 3,000 shares of common
stock
(par $1). Price—At market (approximately $16.50
share). Proceeds — To Richard H. Nelson. Under¬
per
derwriter—None.
writers—Reynolds & Co., New York, and Almstedt
thers, Louisville, Ky.
Bro¬
of
record
shares
March
5
at
rate
held; rights to expire
share.
of
on
one
share
March 24.
for
each
five
Price—$52
Proceeds—To reduce bank loans.
per
Underwriter—
Morgan Stanley & Co., New York.
Public Service Co.
(3/26)
March 6 filed 400,000 shares of common
stock (par $5).
Price—To be supplied by amendment.
Proceeds—To
repay loans and for new construction.
Underwriters—
The First Boston Corp. and
Blyth & Co., Inc.
•
Arkansas-Missouri Power Co.
Feb. 18 (letter of
notification) 18,965 shares of
stock (par $5) being offered for
subscription by
stockholders of record Feb. 29 at rate of
each 18 shares held
(with
an
common
common
share for
one
oversubscription privilege);
rights to expire on March 17. Price—$13.25
Proceeds—For new construction.
per
share.
Underwriter—None.
it Askins Oil Corp., Oklahoma City, Okla.
March 6 (letter of
notification) 8,000 shares of class
(par $10) to be offered in units of 10 or
Price—$100 per unit of 10 shares. Proceeds
shares.
more
—To produce oil and
homa
A
stock
common
City, Okla.
gas.
Office—Fidelity Bldg., Okla¬
Associated Seed Growers,
Inc., New Haven, Conn.
Feb. 21 (letter of notification)
10,860 shares of common
stock (par $25) being offered at
$25 per share to stock¬
holders of record Feb. 29
each eight shares
at
rate
of
one
new
share for
held; rights to expire on March 21.
Unsubscribed shares to be publicly offered about
March
24 at $26.50 per share.
Proceeds—To retire notes and re¬
duce loans.
Office—205 Church
St., New Haven, Conn.
Underwriter—Laird, Bissell & Meeds, Wilmington, Del.
Beckman
Feb.
21
Instruments,
Inc.
(3/18)
390,305 shares of common stock (par $1)
75,000 shares are for account of company and
shares for certain selling stockholders. Price—
of which
315,305
To
filed 675,000
Price—$1.25
and
penses
Bowman
Jan. 28
stock.
Gum, Inc.
(letter of notification)
Price
—
At
15,000 shares of
market.
Webber,
Jackson
&
one
March 28.
on
share for each nine shares
Price—$26
per
share.
&
Co., of Bridgeport, Conn.; Chas. W.
Scranton & Co., New
Haven, Conn.; and T. L. Watson &
Co., New York, N. Y.
(par $100).
ment and
Price—At par.
Office—1950
West
Fort
St., Detroit 16,
Mich.
it Brookville
Manufacturing Co.
(letter of notification) 204 shares of class A
1,899 shares of class B stock to be offered for sub¬
share.
Proceeds—For
acquisition
to
of
be
offered for
record
Feb.
Bush Terminal
property and
Address—P. O. Box 67,
(1) $5,527,800 of 5% general
mortgage 30bonds due 1982; (2)
55,278 shares of 5%
cumulative convertible prior
preferred stock (par $50);
and (3) 772,240 shares of common
stock (par 10
income
all to be offered in
exchange (under
a
cents),
plan of recapital¬
ization) for presently outstanding stocks
share
bond,
new
noon
Eq. Trust Ctfa.
CST)
at
rate
of
share
one
March 27,
each
(Blyth
seven
•
Equip. Trust Ctfs.
new
wood, Colo.
(Harriman
West
Penn
Power
(no
$20.37V2
Ripley
a.m.
At
Bonds & Common.
f
(Bids
11:30
a.m.
Metals & Chemicals Corp
-v'
Pittsburgh Plate
Boston
Corp.)
Common
(Blyth
&
Co.,
Inc.)
i
April 9, 1952
Tennessee
(Stone
&
Production
Webster
Co
Securities
Common
Corp.
and White,
Weld & Co.)
April 10, 1952
Under¬
writer—None.
Merritt-Chapman
page
First
Debentures
Western Air Lines, Inc
(approximately
on
Co.)
April 7, 1952
share). Proceeds—To Mount Olive & Staun¬
Co., St. Louis, Mo., the selling stockholder. Of¬
Continued
Common
&
Glass Co
(The
per
fice—Continental Oil Building, Denver
2, Colo.
EST)
April 3, 1952
Underwriter—Laird
market
Inc.)
EST)
April 2, 1952
Office—3470 South
Broadway, Engle-
—
Co.,
Bonds
11
(Beer
Price
&
Co
Interstate Power Co
per
Underwriter—None.
par).
Bonds
Preferred
(Bids
it Colorado Fuel & Iron Corp.,
Denver, Colo.
March 3 (letter of
notification) 4,900 shares of common
stock
invited)
(Bids to be invited)
(letter of notification) 17,306 shares of common
(par $1). Price—$15.75 per share. - Proceeds—For
construction.
be
Tung-Sol Electric, Inc
March 7
stock
EST)
a.m.
Diego Gas & Electric Co
unit and $3.75 per share for the
3,998 common shares.
Proceeds—To develop oil properties.
Office—948 Dela¬
Co.
underwriting)
Bonds
11:30
(Bids to
San
units of $1,000 of notes and 50 shares
of stock;
remaining
3,998 shares will be sold, 1,999 shares each to
underwriter
and Jackson, Douglas & Whitaker.
Power
No
April 1, 1952
Corp., Wilmington, Del.
25
(letter of notification) $240,000 of notes and
15,998 shares of common stock (par $3). to be offered in
^Colorado Central
?
,__Common
Erie RR
Oil
Trust Bldg.,
Wilmington, Del.
Co., Wilmington, Del.
1952
(Offering to stockholders.
Feb.
&
31,
Texas Power & Light Co
(approximately
Price—$1,187.50
EST)
noon
March
Proceeds—To Celesta M.
Ross, the selling
Underwriter—Israel & Co., New York.
Christiana
Inc.)
■
it Central Oklahoma Oil Corp., Oklahoma
City, Okla.
March 3 (letter of
notification) 90,000 shares of common
stock (par 10 cents).
Price—At
stockholder.
Co.,
Mountain States Tel. & Tel. Co
(Bids
market
Common
Equip. Trust CtfiL
Louisiana.
share).
&
(Bids
Price—$29.50 per share. Proceeds
stock, together with $3,000,000 from pri¬
sale of debentures.
To repay bank loans and for
construction. Underwriter—None.
Statement effec¬
per
Com.
Inc.)
Reading Co.
tive March 3.
$1
Co.
Portland General Electric Co
—From sale of
new
Debentures
1952
(Dillon, Read &
(par $10)
held; rights to expire on March 31. Of unsub¬
shares, a maximum of 5,000 shares to be offered
employees and a maximum of 10,000 shares to other
vate
Corp.)
Canadian Chemical & Cellulose
Co., Ltd
stockholders
for
Debentures
Boston
(Eastman, Dillon & Co.)
Camp
Underwriter—None.
common
First
Inc.)
6109
—
scribed
& Scott Corp._
(Offering
42
to
Common
stockholders)
April 15, 1952
Columbia Gas System, Inc
NEW ISSUE CALENDAR
(Bids
March 14, 1952
to
be
Debentures
invited)
April 22, 1952
Bridgeport Hydraulic Co
Alabama Power Co
Common
(Smith, Ramsay & Co.
and
Bonds
(Bids
associates)
National Foods Corp
Common
to
be
April 30,
Co.)
invited)
1952
First National Bank of Portland
March 15, 1952
Common
May 20, 1952
(Glore, Forgan & Co.)
/
National Fuel
Gas
March 17, 1952
Common
Common
11:30
(Bids
Union Bank & Trust Co. of Los
Angeles._Commdn
(Blyth & Co., Inc.,
to
1952
Bonds & Stock
be
invited)
June 24,
1952
(Bids
Bonds
CST)
a.m.
9,
Kansas Gas & Electric Co._
Lynch, Pierce, Fenner & Beane)
Southwestern Gas & Electric Co
Debentures
June
Breen)
Publicker Industries, Inc
(Merrill
Co
(Bids to be invited)
Petroleum Finance Corp
(George F.
Common
(Offering to stockholders—not underwritten)
Quaker Oats Co
invited)
Gulf Power Co
Bonds
to
be
and others)
July 8, 1952
March 18, 1952
Beckman Instruments, Inc
Georgia Power Co
Common
Pacific Gas & Electric Co
one
of
7%
(Bids 8:30
Bonds
(Bids
to
be
invited)
March
preferred
stock
as
held,
share of 5% preferred stock and
10-cent par common
19,
PST)
1952
Common
(Lcewi & Co.)
Middle South Utilities, Inc
11
Common
a.m.
Narragansett Electric Co
EST)
—
(Bids noon
(Smith, Barney & Co.
and
Debentures
Wood, Gundy & Co., Inc.)
United Air Lines, Inc
(Harriman
Bonds
EST)
Nova Scotia (Province of)
Preferred
Ripley
& Co.
Inc.)
New York.
follows: For
one
one
$100
5%
share of
stock; and for each share of $5
Bonds
a.m.
Koehring Co.
(Bids
Buildings Co., N. Y.
Jan. 25 filed
each
Office
subscription by
25
(The
shares
Price—$12.50
of
improvement and machinery.
Brookville, Pa.
Underwriter—None.
year
(Bids
Central Louisiana Electric
Co., Inc.
13 filed 53,616 shares of
common stock
10
scription by contributors to the loan fund.
per
Common
Blyth & Co.,
(Lehman Brothers)
March
and
1952
and
Chic., Rock Island & Pacific R,v
Feb.
(Bids
Perkins, Inc., Detroit, Mich.
Feb. 25 (letter of
notification) 23,525 shares of common
stock
(par $1). Price—$4.25 per share. Proceeds—To
Watling Lerchen & Co., Detroit, Mich., who also acts
underwriter.
PST)
26,
(First Boston Corp.
Proceeds—For equip¬
operating requirements.
Brooks &
as
March
Bonds
a.m.
Southern Production Co., Inc
Proceeds—To
Underwriters—Smith, Ramsay & Co., Inc., and
Bros.
8:30
Arizona* Public Service Co
2,000 shares of common
stock (par $1) and 500 shares of
5% cumulative preferred
held; rights to
loans and to finance improvements and ad¬
ditions to property.
Business—Distribution and sale of
Hincks
EST)
a.m.
stock
repay bank
water.
11
Shamrock Oil & Gas Corp
(Weber-Millican
(Conn.) Hydraulic Co. (3/14)
Feb. 13 filed 44,000 shares of common
stock (par $20) be¬
ing offered to common stockholders of record March 7
at rate of
(Bids
Co., Inc., Rochester, N. Y.
Bridgeport
expire
Bonds
invited)
Central Airlines, Inc.
Feb. 21 (letter of
notification)
Bowie Blvd., Fort
Worth, Tex.
March 20,
(City Securities and Associates)
Boston
Philadelphia
1952
Indiana Associated Telephone Corp
'
-
—
delphia, Pa.
Underwriter—Paine
Curtis, Philadelphia, Pa.
•
to be
(Bids
shares of common stock (par
$1).
share. Proceeds—For development ex¬
general corporate purposes. Underwriter—
common
Proceeds
To Harry and
Office—4865 Stenton
Avenue, Phila¬
David V. Shapiro.
Common
Co.)
Southern California Gas Co
per
Frank P. Hunt &
&
March 25, 1952
Consolidated Edison Co. of New
York, Inc.__Bonds
Ltd., Toronto, Canada
be
supplied by amendment. Proceeds—For
working
capital and general corporate purposes. Underwriter—
Lehman Brothers, New York-
(Bids
—
ton Coal
filed
(Steele
Oklahoma Gas & Electric Co
common stock
(no par),
500,000 shares will be sold in the United States
500,000 shares in Canada. Price—To be
supplied by
amendment.
Proceeds
To a
subsidiary of Celanese
Corp. of America.
Underwriters—Dillon, Read & Co.
Inc., New York, in the United
States; and Nesbitt, Thom¬
son &
Co., Ltd., and Wood, Gundy & Co.,
Ltd., in Canada.
ware
Underwriter—None.
March 24, 1952
March 7 filed 1,000,000 shares of
Cardiff Fluorite
Mines,
ISSUE
Great Western Petroleum Co.__
and
persons in
-^Arizona
Un¬
of which
•
American Tobacco Co.
Feb. 14 filed 1,075,685 shares of common
stock (par $25)
being offered for subscription by common stockholders
held, 50 shares of the new stock.
Statement effective Feb. 14.
ADDITIONS
SINCE PREVIOUS
ITEMS REVISED
•
it Canadian Chemical & Cellulose
Co., Ltd.
(Canada)
(3/27)
Feb. 21
• Aloha Lumber Corp., Aloha, Wash.
March 6 (letter of notification)
12,571 shares of common
stock (par $10).
Price—$12 per share. Proceeds—For
working capital. Underwriter—None.
* INDICATES
4HT
Preferred
Pittsburgh
San Francisco
Private IVires
to
all
offices
Chicago
Cleveland
Chronicle
The Commercial and Financial
42
41
Continued jrom page
writer—None.
York, Inc. (3/25)
refunding mortgage
bonds, series H, due March 1, 1982. Proceeds
To repay
bank loans and for new construction. Underwriters
To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan, Stanley & Co.; The
First Boston Corp.
Bids—Tentatively scheduled for 11
Consolidated Edison Co. of Hew
of first and
Feb. 19 filed $50,000,000
(EST) on March 25.
a.m.
Underwriters Investment Corp.,
Consolidated
Shreveport, La.
18 filed 40,000 shares
Price—At
of
C.
of class A common
($10 per share, with an
par
Vice-President; and S. O. Ryan.
F. D. Keith,
it Cribben & Sexton Co., Chicago, III.
March 3 (letter of notification) 900 shares of 4%% cumu¬
lative preferred stock (par $25).
Price—At the market
(approximately $13 per share). Proceeds—To Harold E.
Jalass, the selling stockholder. Underwriter — Wayne
Hummer & Co., Chicago, 111.
Daitch
Crystal Dairies, Inc.
of common stock (par $1), of
which 125,000 shares will be offered by company and
22,000 shares by present stockholders. Price—To be supJan. 31 filed 147,000 shares
t
Proceeds
plied by amendment.
—
To open additional
supermarkets. Underwriter—Hirsch & Co., New York.
Offering—Now expected late March or early April.
Corp.
filed $25,000,000 of 4% % first mortgage bonds due
Price — To be supplied by amendment.
Proceeds—To retire $13,950,000 of presently outstanding
first mortgage bonds and for expansion program. Under¬
March
1, 1967.
writers—Halsey, Stuart & Co. Inc. of Chicago and New
York; Van Alstyne, Noel & Co., New York; and Crowell,
Weedon & Co., Los Angeles, Calif. Offering—Postponed
temporarily.
Detroit
Steel
Corp.
styne, Noel & Co., New York, and Crowell, Weedon &
Los
Calif.
Angeles,
Offering—Postponed
tempo¬
rarily.
Power
Pa.
Jan. 10 filed 475,000 shares of common stock to be of¬
fered first to holders of preferential rights for a limited
tiine. Price
At par
($1 per share).
Underwriter —
Graham & Co., Pittsburgh, Pa. Proceeds—For develop¬
Corp., Pittsburgh,
—
ment costs and
Dixie Fire &
Feb.
8
stock
working capital.
Casualty Co., Greer, S. C.
(letter of notification)
(par $10)
share
for
each
9,000 shares of
record
of
four
Feb.
shares
•
5
at
rate
of
it Friendly Finance,
March 10 (letter of
new
Price—$20 per share.
Underwriter—None.
on
Proceeds—For working
Helicopters, Inc., N. Y.
(letter of notification) an undetermined number
of shares of capital stock to be offered to stockholders.
Price—To be determined by the market within
a
two-
week
period prior to the offering date and sufficient to
raise a maximum of $250,000. Proceeds—For working
capital. Office—545 Fifth Ave., New York 17, N. Y. Un¬
derwriter—Cohu & Co., New York, to offer unsubscribed
shares to public.
•
Feb.
Boston, Mass.
100,000 shares of $4.40 convertible second
preferred stock (no par), being offered, for subscription
by common stockholders of record March 3, at rate of
one
share for each 33
pire March
18.
common
Price—$100
shares held; rights to ex¬
per
share.
Proceeds—For
construction and to repay bank loans. Underwriter
—White, Weld & Co., New York.
Statement effective
new
March 4.
★ El Paso Perlite Co., Inc., Las Cruces, N. Ml.
March 3 (letter of notification)
25,000 shares of capital
stock.
mine
Price
—
At par
development.
($1
Office
share).
per
—
Proceeds
137 West Griggs
—
For
St., Las
Cruces, N. M. Underwriter—None.
Inland
Feb.
Office—405 West First St., Boston,
2,003,792
shares
a
basis of
one new
scribers will
to
share for each two shares held.
receive, for each share subscribed,
a
Sub¬
war¬
J,
$24,496,500 of convertible debentures due
on
Price—At
19.
March 5, with rights to
(in
par
denominations
Proceeds—For expansion program.
writer—Kuhn, Loeb & Co., New York.
of
Under¬
it Insurance Securities Inc., Oakland, Calif.
units of $1,000 Single Payment Plan,'
Series U, and 10,000 units of $1,200 10-year Accumulative'
March 7 filed 6,750
Plan, Series E.
Underwriter—None.
International Technical Aero
★
Miami, Fla.
Dec. 29 (letter of notification) 75,000 shares of common
stock (par $1).
Price — $4 per share. Underwriter—
George 'R. Holland Associates, Miami, Fla. Proceeds—
For use in small loan subsidiary branches. Office—440.
Feb. 15
stock
Services, Inc.
(letter of notification) 300,000 shares of
common
(par 10 cents). Price—$1 per share. Proceeds—For
working capital. Office—International Terminal, Wash¬
ington National Airport, Washington, D. C. Underwriter
Biscayne Blvd., Miami, Fla.
—James T. DeWitt &
General Telephone Corp.
Feb. 12 filed 206,918 shares of
ferred stock
★ Interstate Power Co. (4/2)
March 3 filed 345,833 shares of common stock (par $3.50)
to be offered for subscription by common stockholders
like
of
4.75% convertible pre¬
(par $50), being offered in exchange for a
number of outstanding shares of 4.40% preferred
shares
a
of
1956;
through December,
stock
common
shares
1.50
1961; and 1.40 shares
Proceeds—Any cash proceeds will be used
make additional investments in or advances to sub¬
shares thereafter through December,
thereafter.
also
filed
5,400
shares of
Statement effective Feb.
None.
Golconda Mines
common
stock
Petroleum
Underwriter—Steele &
Offering-—Date not sei
-
Co., New York.
of
*
stock
Ga.
ver,
Colo.
2,500 shares of preferred stock. Price—At par,
($10p>er share). Proceeds—To purchase a franchise in,
^western International Baseball League. > Office—
Underwriter—None,,,,
.
Under¬
Chamber of Commerce, Lewiston, Ida.
Lipdemann
of
ceeds—To
k
& Hover son Co.
To
eight selling stockholders.
★ Loch-Lynn Gas Corp.
Offering—Date indefinite.
(N. J.)
Marcl|/5 (letter of notification) 1,000 shares of
.stock.'K Price—$100
per
share.
Proceeds—For
common working,
Office—15 Exchange Place, Jersey City 2, N. J.
ter—None.
mortgage bonds, series
capital stock to stockholders for subscription
July 1, 1952, at par, $100 per share). Pro¬
advances from American- Telephone &
repay
(A. J.)
Nov^:28 filed 112,500 shares of common stock (par $1).
Pric^-To be supplied by amendment, Underwriter—
Sills|;Fairman & Harris, Inc., Chicago, 111. Proceeds—
capita^
C, due April 1, 1984 (company also plans to offer 682,454
before
Underwriter—None.
the
writer—None.
or
(par $5),
stocf/and
it Idaho Consolidated Mines, Inc.
March 6 (letter of notification) 100,000 shares of com¬
mon
stock (par 10 cents).
Price—50 cents per share.
Proceeds—To replace equipment and for working capi¬
on
stock
★ Lfwistoit (Ida.) Baseball Club, Inc.
Marph,5 (letter of notification) 7,500 shares of common
debenture notes to be offered in units of two
Price—$120 per unit..
Proceeds—For
working capital.
Office—101 Marietta
shares
(3/19)
common
★ Leadville Lead Corp., Denver, Colo.
Mar&h, 7' (letter of notification) 100,000 shares of com-;
mon;istock (par $1). Price—$1.25 per share. Proceeds—Z
For working capital. Office—500 E. & C. Building, Den¬
:
Bldg., Seattle, Wash.
shares of
subscription by common stockholders at
Underwriter—Loewi & Co., Milwaukee, Wis.
(par $10) and $187,500 of subordinated convertible
Arcade
60,715
Business,— Manufacturer of construction equipment. 1
(letter of notification) 3,750 shares of common
Office—4109
filed
,
Underwriter—None.
rate pf one share for each four shares held. Price—To be,
supplied by amendment. Proceeds—For working capital.
shares of stock and $100 of notes.
tal.
28
to beoffered for
Underwriter—None.
& Co., Atlanta,
capital.
Koehring Co., Milwaukee, Wis.
Feb.
it Hemisphere International Corp., New Orleans, La.
March 3 (letter of notification) 50,000 shares of common
stock (par $1), of which 18,334 shares will be offered to
present preferred stockholders on basis of converting
each share of present preferred stock
(par $10) into
3V3 shares of common stock, and 31,666 shares will be
offered to present common stockholders and officers of
company at $3 per share.
Proceeds—For working capi¬
(Joel)
$1,000 each). Proceeds—To retire bank loans. Under¬
to increase working
New York.
March 6
,
★ Knox Glass Bottle Co., Knox, Pa.
Mardhf 7 (letter of notification) 11,999 shares of com¬
mon stock.
Price—At par ($25 per share).
Proceeds—
Underwriter
(letter
it Hurt
Probable
writer—Wachob-Bender Corp., Omaha, Neb.
stock
non,
bidding.
★ Junction City (Kansas) Telephone Co.
Feb. 29 (letter of notification) $294,000 of first mortgage;
4V2% bonds, series A, due Feb. 1, 1977 (in denominations
Mining Co., Wallace, Ida.
of notification) 3,000 shares of capital
(par 25 cents). Price—At market (approximately
$18 per share). Proceeds—To Mrs. M. K. Pollard, the
selling stockholder. Underwriter—Thomson & McKin17
competitive
★ Johnston Adding Machine Co., Carson Ciity* Nev;
March 5 (letter of notification) 150,000 shares of capital
stock/ Price—At par ($1 per share).
Proceeds—To pur¬
chase tools and materials and office equipment. Under¬
writers—None.
'V
■'
Hecla
Jan.
by
Co.; Merrill Lynch, Pierce, Fenner & Beans; Smith, Bar-;
& Co.; Salomon Bros. & Hutzler. Bids—Tentativelya.m. (EST) on April 2.;
Co.
share). Proceeds—For working capital.
.
determined
Halsey, Stuart Co., Inc.; White White, Weld &
scheduled to be received at 11:30
Bag & Paper Co., Wellsburg, W. Va.
Feb. 15 (letter of notification) 10,000 shares of common
stock to be offered to stockholders. Price—At par ($20
-
April 2.
ney
Hammond
per
be
bidders:
29.
working capital.
Western
on
1982. Proceeds—Fox construction program. Underwriters
(3/24-29)
Feb. 25 (letter of notification) 299,900 shares of com¬
mon stock. Price—At par
($1 per share). Proceeds—To
drill wells. Office—328 Empire Bldg., Denver 2, Colo.
Great
(jEST)
—To
April 9 filed 750,000 shares of common stock. PriceAt par ($1 per share). Underwriter—George F. Breen
New York. Proceeds—For drilling expenses, repaymem
•
held
★ Interstate Power Co., Dubuque, Iowa (4/2)
T
March 3 filed $2,000,000 of first mortgage bonds, due
Montreal, Canada
Ltd.,
April 4
then
Bids—Tentatively scheduled to be received at 11.30-
a.m.
(par
$20) to be issued to Southwestern Associated Telephone
Co. in exchange for 6,600 shares of its common stock,
then to be exchanged by Southwestern for property of
J. E. and Ruby B. Schultz who will then reoffer such
stock on the New York Stock Exchange. Underwriter—
12
Feb.
V
(jointly); Smith, Barney & Co.; Harriman Ripley & Co.
Inc.
Underwriter—None.
sidiaries.
record
Co., Washington, D. C.
on basis of one share for each six
(with an oversubscription privilegedProceeds—For construction program. Underwriters—To
be determined by competitive bidding. Probable bidders:.
Blyth & Co., Inc.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
share-for-share basis, but
subject to a charge
of $3.68 per share. The offer will expire April 30, 1952.
The new preferred stock will be convertible into 1.65.
on
March 7 filed $25,000,000 of first
derwriter—None.
N.
-
1972, being offered first for subscription by.
stockholders at rate of $100 of debentures for
March
it Illinois Bell Telephhone Co.
or an additional 2,-
Newark,
$100 each).
9,975 shares by certain key employees at the
(latter part to be underwritten at $2.78 per
share). Proceeds—For working capital. Underwriter—
William S. Prescott & Co., Boston, Mass.
Junds) per share until June 1, 1953,
Unsubscribed shares will be offered by
the company at the same price and
carrying the same
warrants. Proceeds—To finance
drilling program. Un¬
St.,
share;
Steel Co.
filed
each 20 shares of stock held
price
rant to purchase one additional share at
$1.25 (Canadian
003,792 shares.
Commerce
per
for work¬
15,
expire
share and
Street, N. W., Atlanta, Ga.
be offered to present common
stockholders at 75 cents per share
(Canadian funds) on
are
15
March
10-year
common stock
(par $1)
purchase warrants of which
Price—50 cents
Underwriter—Weber-Millican Co., New York.
Mass.
preferred stock, par for par (in denominations of $100
each).
Proceeds—To retire preferred stock and for
working capital. Underwriter—None.
and 2,003,792 common stock
(par 25 cents).
Office—11
capital.
ing
it General Alloys Co., Boston, Mass.
March 5 (letter of notification) 25,000 shares of common
stock (no par), of which 15,025 shares are to be offered
for subscription by officers of the company at $3 per
tal.
Toronto, Canada
stock
common
★ Falleen Drop Forge Co., Inc., Manistee, Mich.
March 6 (letter of notification) $250,000 of 6% deben¬
tures due March 1, 1967, of which
$113,225 principal
amount will be offered in exchange for
outstanding
Fenimore Iron Mines Ltd.,
Jan. 25 filed 4,007,584 shares of
(Nev.), Newark, N. J.
(letter of notification) 599,700 shares of class A;
Proceeds—For drilling and equipping well and
El Paso Natural Gas Co.
Feb. 14 filed
26
common
being offered in exchange
same
<
anapolis Bond & Share Corp., both of Indianapolis, Ind.-
Underwriter—W. L. Lyons & Co.,
Inland Oil Co.
Underwriter—None.
(3/20)
shares of $2.50 cumulative preferred'
stock (no par). Price—To be supplied by amendment.*
Proceeds—To repay bank loans and for new construc¬
tion. Underwriters — City Securities Corp. and Indi¬
(letter of notification)
11
Associated Telephone Corp.
Indiana
Feb. 29 filed 20,000
47,260 shares of common
for outstanding class A
preferred stock on basis of two shares of common stock
and $3 in cash for each one share of preferred "un¬
stamped" stock, and two common shares and $2.10 in
cash for each one share of preferred "stamped" stock.
Feb.
stock
Proceeds—For working
Underwriter—Barrett Herrick & Co., Inc., New
capital.
York.
Inc., Paducah, Ky.
notification) 15,000 shares of 6%;
Co.,
Alloys
General
Price—$2.50 per share.
after.
Louisville, Ky.
—None.
•
.
preferred stock (par $10) and 15,000 shares
of common stock (par $1), to be offered in units of one
share of each class of stock.
Price—$12.37 Vz per unit.
Proceeds—For working capital. Office—107 South Fourth
of advances and
Doman
Feb. 26
Independent Plow, Inc., Neodesha, Kan.
/Y. ¬
(letter of notification) 120,000 shares of common
stock (par 25 cents) to be offered to stockholders of rec¬
ord about March 13 or 14; rights to expire 14 days there¬
Feb. 15
cumulative
com¬
one
held; rights will expire
March 17.
capital.
common
being offered for subscription by
stockholders
mon
★
;
Publications, Inc.
March 4 (letter of notification) 150,000 shares of 7%
cumulative
preferred stock.
Price—At par ($1 per
share).
Proceeds—For operating expenses. Office—22
addon Avenue, Camden, N. J.
Underwriter—None.
to
Diesel
North
;
Probable bidders: Halsey, Stuart &
Co.
Co., Inc.; Morgan Stanley & Co:; Glore, Forgah &
Corp. (jointly),
r
'
'
it Fox-Shulman
stock
of $1.50 convertible preferred
stock (par $25). Price—To be filed by amendment. Pro¬
ceeds—For expansion program. Underwriters—Van Al¬
Feb. 5 filed 600,000 shares
Co.,
competitive bidding.
and Union Securities
General Credit Corp.,
Detroit Steel
Feb. 5
Co., Inc. of Lancaster, Pa.
Office—332
Street, Lancaster Pa. . Underwriter—None.
turing
Arch
Street, Paducah, Ky.
.
stock.
underwriter fee
$1.50). Proceeds—For investment. Underwriters—A.
Decker, Jr., President and Treasurer of corporation;
Feb.
Telegraph Co., which owns 99.31% of Illinois Bell out¬
standing stock. Underwriters — To be determined by
it Fidelity Electric Co., Inc. (Pa.)
,
4 (letter of notification) 55,230 shares of com¬
mon stock
(par $1).
Price—$3.25 per share. Proceeds
To acquire all of stock of Everite Pump & Manufac¬
March
it Commercial Benefit Insurance Co.
March 3 (letter of notification) 45,000 shares of capital
stock (par $1), to be offered in units of 45 shares each.
Price—$75 per unit. Proceeds—For surplus funds. Office
—Commercial
Insurance Bldg., Phoenix, Ariz. Under¬
•<
Thursday, March 13, 1952
.
(1114)
•
III.
filed 150.000 shares of 4%% cumulative convert¬
ible preferred stock (par $100). Price—To be supplied
by amendment.; Underwriters—Glore, Forgan & Co. and
Lee J$igginson Corp., New York.
Proceeds—To retire
Marshall Field & Co., Chicago,
Dec. 19
Volume 175
Number 5098
.
..
The Commercial and Financial
Chronicle
(1115)
bank
loans.
Statement
be
may
withdrawn.., Financing
arranged privately.
Provincial debentures
.t
Scotia Power
and
for. advances to The Nova
—At market.
Proceeds—For investment.
Underwriter—
Vance, Sanders & Co., Boston, Mass.
★ Matheson Co., Inc.
March
★
.
Mathieson Chemical
Corp., Baltimore, Md.
26 filed 200,000 shares of common
stock to be of¬
of
stockholders
Proceeds—For general corporate
purposes.
March
McKay Machine Co., Youngstown, Ohio
Jan. 14 (letter of
notification) 6,399 shares of
stock
(no par), being offered to
Co.
(3/24)
>
first
and
1968
Jan.
31
at
rate
held; rights to expire
of one share
common
March
on
for each ten
$102
be
shares
Brothers.
unit; debentures
per
at
face
(3/19)
stock
common
(no par).
and
Proceeds—To purchase stock of Arkansas Power &
Light
Co. and for other corporate
purposes. / Underwriters—To
be determined
by competitive bidding. Probable bidders:
Blyth & Co., Inc.; The First Boston Corp.; Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Beane
★
11
up to
a.m.
(EST)
Feb. 21
(letter of
stock (par
record
March
March
21.
7
on
a
rata
pro
Pennant Drilling
Co.,
common
rights to
expire
share.' Underwriters—Loewi /; well.
Price—$19 per
& Co., Milwaukee,
Wis., and Carter H. Harrison
Chicago,, 111.
;•>
v:'- 'V.'O
★ Mohawk Farms Co., Phoenix, Ariz.
&
★
stock
common
$5(M> note and
one
five
shares
of
stock.;
mon
(par 20 cents) to be sold in units of
250 shares of common stock and/or
preferred
Price—$550
stock
per
and
unit.
250
shares
of
Proceeds—For
.
com¬
land
r
(3/31)
($100 per share)., Proceeds—To repay advances from
American Telephone & Telegraph Co.; parent, which
owns a majority (over 84.81%); of present
outstanding
stock. Underwriter—None.
;;
/
J
2
„
★ Mutual Fund of Boston, Inc.
March
4
filed
10,000 shares of capital stock/ Price—At
Proceeds—For investment.
sell, Berg & Co., Boston, Mass.
market.
,
.
Underwriter—Rus-
>
.
.
-
-
1
March
March
—For
.mon
(letter
stock
pay
(par 10 cents).
Root, Chairman of the Board.
Price—$13.50
Newport Steel Corp., Newport,
first to stockholders of
—107
—
★ Norris Oil Co.,
Bakersfield, Calif.
March
1
per
Merrill
share.
per
Proceeds—For
Office
Street, Atlanta, Ga.- Underwriter—None.
and
distribution
of
industrial
alcohol
13
on
offered
to
common
basis
of
one
a
and
share
for
each
Price
shares
seven
To
March
held;
be supplied
amendment.
by
Proceeds—For plant expansion and work¬
ing
Underwriter—Glore,
—
Forgan
&
*
Co.,
New
York.
-
Hubbard, selling stockholders. Office7, Haberfelde Bldg. Arcade,
Bakersfield, Calif.
; Underwriter—None.
(3/19)
March 7 filed
$12,000,000 12-year debentures to be dated
.March 15, 1952, and to mature March
15, 1964. -Price—
To be supplied by amendment.
Proceeds—For
refunding
wan
•
(Canada) and Texas
•
Ltd.
(Hawaii)
V
March 4 (letter of notification) 20,000 shares of common
Price—At par ($10 per share). Proceeds—To con¬
stock.
struct and
operate
a
radio station.
St., Honolulu, Hawaii.
Office—1071
Bishop
Underwriter—None.
★ Raisin Markets, Inc., Los Angeles, Calif.
March 5
(letter of notification) 10,000 shares of
ferred stock.
For
acreage, and to retire 4% con-
Underwriter—Eastman, Dillon
/
i
Southwestern Gas & Electric Co.
Feb.
25
(3/17)
filed
$6,000,000 first mortgage bonds, series E,
1, 1982. Proceeds—For new construction. Un¬
due March
derwriter—To
be
determined
by
competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co.; Salomon Bros. &
Fenner
&
Beane
Hutzler; Merrill Lynch, Pierce,
Securities Corp. (jointly);
and
Union
> Lehman Brothers; White Weld & Co.; Harriman Ripley
& Co., Inc.; The First Boston
Corp. Bids—Expected
a.m.
(CST).
Statement
effective March 11.
• State Bond & Mortgage Co., New Ulm, Minn.
filed $500,000 of investment
certificates, series
5; $1,000,000 of investment trust certificates, series 6;
and $1,500,000 of accumulated savings
certificates, series
March 3
12.
Proceeds—For investment. Underwriter—None.
• Sterling Petroleum Co., Seattle, Wash.
March 6 (letter of notification) 1,250,000 shares of capi¬
tal
stock.
Price—10 cents per share.
Proceeds—For
equipment and drilling costs and working capital. Of¬
Joshua
Green
Bldg.,
Seattle,
Wash.
Under¬
(Harold R.), Inc., Los Angeles, Calif..
March 5 (letter of notification) $150,000 of 6% unsecured
promissory notes to be issued in varying principal
amounts to approximately 20 individuals who have busi¬
ness relationships with the
company. Price—At par. Pro¬
ceeds—To cancel loans and for materials and
Office—1708 South Grand
Texas
Feb.
Price—At par ($25 per share).
Proceeds—
610,937 shares of
of record March 7
on
shares held
an
will
Un¬
(with
Corp.
stock
(par $7)
stockholders
a basis of one share for each eight
oversubscription privilege); rights?
common
common
expire March 26. Price—$17 per share. Proceeds—
expansion program.
Underwriter—Dillon, Read &
For
Inc., New York.
Texas
Feb.
Engineering & Manufacturing Co., Inc.
(letter of notification) 14,000 shares of common
18
stock
per
(par $1). Price—At market (estimated at $7.12V2.
share). Proceeds—To H. L. Howard and R. McCul-
loch,
two selling stockholders.
Underwriters—Beer &
Co., Shearson, Hammill & Co. and Dallas Rupe & Son,
all of Dallas,
•
Tex.; and Butler, Moser & Co., New York.
privately.
Texas
Feb.
28
Power &
filed
Light Co. (3/31)
first mortgage
bonds, due
April 1, 1982, and $5,000,000 of sinking fund debentures,
due April 1, 1977. Proceeds—To repay short-term loans
for
mined
working capital. Office—5320 West 104th St., Los
Angeles, Calif. Underwriter—None.
Eastern Transmission
filed
21
being offered for subscription by
and
pre¬
equipment.
Ave., Los Angeles, Calif.
derwriter—N one.
Placed
★ Radio Honolulu,
Co., Inc. (3/26)
$12,500,000 of 15-year convertible deben¬
1, 1967.
Price—To be supplied by
vertible preferred stock.
& Co., New York.
•
(par $5)
stockholders of record
rights to expire March 31.
capital.
Production
March
Proceeds—For acquisition of property and
for development and exploration this
year of Saskatche¬
Co.
Quaker Oats Co., Chicago, III. (3/15)
Feb. 21 filed 410,121 shares of common stock
be
determinted
amendment.
•
★
Lynch,
Suite
$27.50
Beane, New York.
to
1,000 shares of capital
share. Proceeds—To Walter
(Province of)
public
chemicals. Underwriter—Merrill Lynch,
Pierce, Fenner &
Un¬
N.
;★ Nova Scotia
April
Industries, Inc., Phila., Pa. (3/17)
300,000 shares of common stock (par $5).
be
supplied by amendment. Proceeds—To
of Estate of Harry Publicker. Business —
Production
capi¬
notification)
of
on
Publicker
Executors
Ky.
selling stockholder. Underwriter
Pierce, Fenner & Beane, Louisville.
Ky.
Price—$4
Cone
Price—To
(letter of notification) 1,200 shares of common
stock (par $1).
Price — At market (estimated at about
,$11.84 per share). Proceeds — To Bernard A.
Mitchell,
the
to
be
• Swanton
be
offered
due
fice—823
Atlanta,
working capital to increase volume of business.
5
(letter
Co.,
10,901 shares of capital
to
Underwriter-
writer—None.
Insurance
(letter of notification)
share, and
share.
per
Canaan, Conn.
derwriter—Alex. Brown & Sons,
Baltimore, Md.
M.
Underwriter—
'Feb. 27 filed
Proceeds—For capital improvements and
working
tal.
Office—63 Park Street, New
and
constructin.
new
Corp., Pittsburgh, Pa. (3/14)
; record Feb. 11; unsubscribed shares to be offered to
notification) 299,000 shares of compublic on April 15.
Price—To stockholders $25 per
new
stock (par $1).
(3/27)
stock
(letter of notification) 22,000 shares of common
stock (par $1), of which
14,667 shares will be for account
*"of company and 7,333 shares for
account of Louis D.
N.
Co.
Southern
tures
.
Co.,
March 7
>
3
bank loans and for
★ Progressive / Fire
Georgia. (4/1)
★ New York Wire Cloth Co.
Feb.
Electric
shares).
to be received March 17 at 11:30
rBlyth & Co., Inc., San Francisco and New York.
March 4
-
Under¬
March 10 filed 250,000 shares of common stock
(no par).
Price—To be supplied by amendment.
Proceeds—To
South
.—210
•
.
Proceeds
2,846
bidders:
March 5 filed
$40,000,000 sinking fund debentures due
★ Portland General
Price—$1 per share.
Pro¬
equipment and working capital.
Office
Beatty Street, Pittsburgh 6, Pa.
Underwriter—Weber-Millican Co., New York.
ceeds—For
.
of
filed
working capital. Underwriters—Dempsey &
S and Frank E. McDonald &
Co., both of Chicago, 111.
'company's offices, Room 516, 49 Westminster St., Providence. R. I.
.: • \ .t■.
.;: /:im
7
11
Price—To be supplied by amendment.
further expansion and diversification.
•—For
;
March
(3/17)
/-Portable Electric Tools, Inc.,
Chicago, III.
Feb. 27 filed 135,000 shares of common stock
(par $1) of
/which 35,000 shares are being offered by certain stock¬
holders. Price—To be supplied by amendment. Proceeds
1, 1982.
>★ National Foods
Bldg., Denver 2,
Christensen, Inc.,
writer—The First Boston Corp., New York.
Proceeds—To repay bank loans incurred for new construction.,
Underwriters—To be de¬
termined by competitive bidding. Probable bidders: Halsay, Stuart & Co. Inc.; Harriman Ripley & Co.
Inc.; Salo* mon Bros.
& Hutzler;
Kidder, Peabody & Co.; The First
Boston
Corp.; Lehman Brothers; White, Weld & Co.
Bids—To be received up to noon
(EST) on March 19 at
•
Corp.
(for
by competitive bidding.
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane and
Harris, Hall & Co. Inc. (jointly);. White, Weld & Co.;
Blyth & Co., Inc. Bids—To be received up to 8:30 a.m.
(PST) on March 25.
Probable
5
1967.
Narragansett Electric Co. (3/19)
{Feb. 8 tiled, $7,500,000 of first mortgage bonds, series C,
due
derwriter—To
Chicago, 111. Proceeds—To purchase new equipment. Of¬
fering—Temporarily delayed.
★ Pittsburgh Plate Glass Co. (4/3)
par
1
Finance
Co.
Southern California Gas Co. (3/25)
Feb. 21 filed $30,000,000 first
mortgage bonds, series A,
due April 1, 1982. Proceeds—For new construction.
Un¬
Pioneer Air Lines,
Inc., Dallas, Tex.
Nov. 29 filed 120,000 shares of common stock
(par $1).
Price—$12 per share. Underwriter—Cruttenden & Co.,
March 7 filed 318,624 shares of
capital stock, to be offered
for subscription
by stockholders of record March 28 in
ratio of one share for each four shares
held. Price—At
.
&
Posey Service
Alex. Brown & Sons. Baltimore. Md.
New York.
purchases and operating capital.
Office—Security Build¬
ing, Phoenix, Ariz. Underwriter—None.
★ Mountain States Telephone & Telegraph Co.
^
(letter of notification) 60,000 shares of common
stock (par $1) and
30,000 warrants to purchase 30,000
shares of common stock
(warrants exercisable at $7.50
per share on or prior to April
1, 1954). Each purchaser
of tw;o common shares will receive
one warrant.
Price—
$5 per share.
Proceeds—For working capital.
Office—
Oklahoma City, Okla.
Underwriter—George F. Breen,
(letter of notification) $100,000 of 5%% 10-year
redeemable debenture notes and
1,180 shares of 6Vz%
cumulative preferred stock
(par $100) and 109,000 shares
of
"
Inc.
Underwriter—Peters, Writer
Petroleum
Feb.
March 7
-
Shirks Motor Express
Corp., Baltimore, Md.
(letter of notification) 9,796 shares of 6% cumu¬
lative preferred stock.
Price—At par ($10 per share).
Proceeds—To Manheim Corp. (for 6,950
shares) and to
Feb. 13
Offering—Indefinitely
Denver, Colo.
capital expenditures and the balance will be
general funds. Underwriter—The First Boston
Corp., New York.
notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—To drill
Office—622 First National Bank
Colo.
Co.,
(3/26)
$15,000,000 sinking fund debentures due
filed
tion with
Feb. 29 (letter of
stock.
4
added to
March 18.'
ceeds—For construction
program.
postponed.
to stockholders of
basis;
on
26 filed
160,000 shares of 5%% prior preferred
(par $25). Price — To be supplied by amendment
Underwriter—A. C. Allyn & Co., Inc.,
Chicago, 111. Pro¬
Co.
notification) 15,000 shares of
SlOj being offered initially
(PST)
Underwriter
1967. Price — To be supplied by amendment.
Proceeds—To prepay $10,000,000 notes issued in connec¬
Underwriters—
ftock
:t
Underwriter—Franklin & Co., New York.
April 1,
.
Peabody Coal Co.
•
March 19.
on
Mississippi Valley Public Service
a.m.
on
Shamrock Oil & Gas Corp.
March
March
(iointlv); Lehman Brothers; Union Securities
Corp. and
Equitable Securities Corp. (jointly).
Bids—To be re¬
ceived
ceived up to 8:30
,
be
—None.
bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The
First Boston Corp.
Bids—Tentatively expected to be re-
i
To
bidders:
expected to be received
March 7 filed 78,480 shares of
capital stock.
value
construction and to reduce bank loans.
be determined by competitive
/
Bids—Tentatively
stockholder.
To;
i
—
Probable
★ Scudder, Stevens & Clark Common Stock
Fund,
Inc., Boston, Mass.
17.
Utilities, Inc., New York
filed 600,000 shares of
bidding.
Sargent & Greenleaf, Inc., Rochester, N. Y.
18 (letter of
notification) 5,500 shares of common
stock (par $1).
Price—At market (approximately $6 per
share). Proceeds—To Howard S. Thomas, Jr., the selling
(in denominations of $100
each); 5,000
cumulative preferred stock
(par $100) and
purchased
Underwriters
program.
competitive
Feb.
•
Middle South
by
April 1.
-
Feb. 21
Price—At
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Merrill
Lynch, Pierce, Fenner & Beane; The First Boston Corp.;
White, Weld & Co. and Shields Co. (jointly); Lehman
common stock (par
$1) to be offered in
$100 of debentures and two common shares or
share of preferred and two
common shares.
Price—
one
*
construction
of
units
^
for
determined
preferred stock may also
separately. Proceeds—For
Any unsubscribed v new construction and equipment. Business—Softboard
shares will be offered to
employees.
Price—$25 per / and hardboard plant. Underwriter—None. *■■■
share.
Underwriter—None. Proceeds—To pay for plant
Pacific Gas & Electric Co.
(3/18)
expansion and new equipment.' Office—767 West Fed¬
Feb. 20 filed
$55,000,000 of first and refunding mortgage
eral St.,
Youngstown, Ohio.
l
"
bonds, series U, due Dec. 1, 1985. Proceeds—For new
record
stock.
San Diego Gas & Electric Co.
(4/1)
&
March 3 filed
$12,000,000 first mortgage bonds, series D
due 1982. Proceeds—To retire
$5,600,000 of bank loans
60,000 shares of
.
stockholders of
common
1,
shares of 6%
Underwriter
:
of
Feb.
Jan.
25.
—None.
$12,000,000
Oregon Fibre Products, Inc., Pilot
Rock, Ore.
1 filed
$2,500,000 5% sinking fund debentures due
*
option plan to
approval
fifed
Inc.; Merrill'Lynth, Pierce, Fenner & Beane and v
White, Weld & Co. (jointly); The First Boston
Corp.;
Equitable Securities Corp.; Lehman Brothers and
Blyth
& Co., Inc.
(jointly*; Harriman Ripley & Co. Inc. and,
Union Securities
Corp. (jointly); Smith, Barney & Co.
Bids—Expected to be received on March 24.
<
fered to key
employees of the corporation and its subsidiaries under a proposed restricted stock
for
30
Co.
t
Feb.
common
($5 per share). Proceeds—For exploration and other
mining purposes. Business
Uranium mining. Under¬
writer—None.
par
mortgage bonds due
^^^^1^982. Proceeds—To retire bank loans and for
new construction.
Underwriters—To be determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
10
submitted
Oklahoma^ Gas & Electric
Jan.
(letter of notification) $60,000 of first mortgage bonds dated March 1, 1952 and due March
1, 1967.
Price—A; principal amount.
Proceeds—For additional
be
Feb. 15 filed 100,000 shares of
;
—
*
working capital and for retirement of preferred stock.
Underwriter—Mohawk Valley Investing Co., Inc.,
Utica,
Ridley Mines Holding Co., Grafton, N. D.
:
Commission;: and for capital
expenditures.
(
★ Massachusetts Investors Trust,
Underwriters—Smith: Barney & Co. and Wood,
Boston, Mass#
Gundy
March 7 filed 892,024 shares of beneficial
interest. Price Z&.X!a., Inc., New Ydrk.
0
43
For
new
by
bonds
$14,000,000 of
construction.
Underwriters—To
be
deter¬
competitive
bidding.
Probable bidders: (1)
only: First Boston Corp.; Drexel & Co., and
Hemphill, Noyes, Graham, Parsons & Co. (2) For debenContinued
on
page
44
.
44
The Commercial and Financial Chronicle
(1116)
Continued jrom page
43
only: Harris, Hall & Co.
tures
;
-
(Inc.).
**. -•
(3) For bonds and
Halsey, Stuart & Co. Inc.; Lehman Brothers;
Union Securities Corp.; Kuhn, Loeb & Co.; Blyth & Co.,
debentures:
Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce,
expected
(jointly).
Bids—Tentatively
(EST) on March 31.
^tFenner & Beane
at
11:30
a.m.
Texas
Utilities
ing first offered to common
of one new share for each 12 shares held
Underwriter—Union Securities Corp.,
York.
New
Thermal
Research
to
Thiokol
Feb.
Corp., Trenton, N. J.
(letter of notification) 23,762 shares of capital
14
shares held
v
t
1
to expire on
For
stock-
(par $1), being offered for subscription by
stock
was
On Feb. 18, stockholders voted to increase the
authorized common stock to 1,000,000 from 750,000 shares,
financing.
5% stock dividend. Under¬
Lerchen & Co., Detroit, Mich.
Pro¬
additional working capital.
and to issue 37,500 shares as a
ceeds—For
be
delphia, Pa.
•
sideration
writer—Watling
& Engineering Corp.
initially offered for subscription
by common stockholders of record March 12 at rate of
one
share for each five shares held; rights expire on
March 26. Price—$4 per share. Proceeds—To purchase
plant and machinery and for working capital. Office—
Conshohocken, Pa. Underwriter—Drexel & Co., Phila¬
(par $1)
(with an oversubscription privilege); rights
March 21. Price—$9 per share. Proceeds—
Underwriter—None.
expansion and working capital.
Office—780 North Clinton Ave., Trenton, N.
McKone, Chairman, announced that con¬
being given to the possibility of equity
Jan. 4, Don T.
(letter of notification) 35,155 shares of common
March 3
stock
000 shares to enable company
quirements. There are no immediate plans for sale of
additional preferred stock.
March 4 it was reported company plans the sale
it Alabama Gas Corp.
March 7 sought SEC authority to issue and sell $4,000,000 first mortgage bonds, series C, due 1971. Proceeds—
construction
For
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld & Co., Kidder, Peabody
& Co. and Stone & Webster Securities Corp. (jointly);
Salomon Bros. & Hutzler, Equit¬
able Securities Corp. and Carl M. Loeb, Rhoades & Co.
The First Boston Corp.;
(jointly).
Co.
Tri-State Telecasting
Corp., Chattanooga, Tenn.
filed
21
20,000 shares of common stock (no par)
and 2,000 shares of 5% cumulative preferred stock (par
$100) (common stock to be sold only on basis of ten
•hares for each preferred share purchased).
Price—Of
was
and sell
Proceeds—For
Underwriters—To be determined
•
•
common, $10 per share, and of preferred, $100 per share.
Proceeds—For
new
equipment and working capital.
Underwriter—Hugh P. Wasson, President of company.
Tung-Sol Electric, Inc. (4/1)
March 10 filed 50,000 shares of cumulative convertible
preferred stock (par $50).
Price—To be supplied by
amendment.
Proceeds—For working capital.
Under¬
•
writer—Harriman Ripley & Co., Inc., New York.
in?—Expected early in April.
Offer-
(3/19)
Feb. 27 filed 224,112 shares of cumulative convertible
preferred stock, 1952 series (par $100), to be offered for
subscription by common stockholders at rate of- one
share of preferred stock for each
held
stock
March
11 shares of
18;
rights to expire
common
April 2.
Price—To be supplied by amendment.
Proceeds—To be
applied, together with other fund, toward payment for
new flight and ground equipment.
Underwriter—Harri¬
man Ripley & Co., Inc., New York.
on
on
if U. S. Thermo Control Co.
March 4 (letter of notification) 21,000 shares of common
stock (par $1).
Price—At the market (approximately
$3,371/2 per share). Proceeds—To Blanche M. Numero,
the selling stockholder. Office—44 South 12th St., Min¬
neapolis 3, Minn. Underwriter—None.
Viking Plywood & Lumber Corp., Seattle, Wash.
Oct. 19 filed 22,500 shares of common stock (no par) to
be offered to employee-stockholders in minimum units
of
shares
125
writer—None
per
.
unit.
Price—$20
Proceeds—To
purchase
stock of Snellstrom Lumber Co.
share.
per
50%
Under¬
of
capital
Statement effective Feb.
Inc.; Union Securities Corp., Equitable Securities Corp.
and Drexel & Co. (jointly); Shields & Co. and Salomon
Bros. & Hutzler (jointly); Harriman Ripley & Co. Inc.
Bids—Tentatively expected to be opened on April 22.
Allied Electric Products,
Inc., Irvington, N. J.
Nathan Chirelstein, Chairman, said it is probable
within a short time will register with
the SEC an issue of long-term convertible debentures,
part of which will be offered in exchange for any out•tanding three-year convertible notes dated Nov. 1, 1951.
Nov. 9,
Chicago & Western Indiana RR.
Jan.
Services, Inc.
(letter of notification) 2,000 shares of common
stock (no par). Price—$20 per share. Proceeds—To W.
H. Thompson, the selling stockholder.
Underwriters—
.Barron McColloch, Ft. Worth, Tex.; Dewar, Roberston
25
& Pancoast and Russ & Co., both of San
Laird & Co., Wilmington, Del.
Antonio, Tex.;
and
West
Penn
Power
Co., Pittsburgh, Pa. (4/1)
$12,000,000 of first mortgage bonds, series
,0, due April 1, 1982, and $8,000,000 of no par common
Feb
filed
28
stock
(latter to be offered for subscription by stock¬
holders at rate and price to be supplied
by amendment.
.Proceeds—To pay bank loans and for property additions
and improvements,
Underwriters—(1) For stock, none.
West Penn
Electric Co., owner of
approximately
94.6%
purchase all
(2) For bonds
to be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.;
of outstanding common stock,
proposes to
shares not subscribed by public holders.
Lehman Brothers; Blyth &
Co., Inc.; W. C. Langley &
Co; The First Boston Corp. Bids—Expected to be opened
at 11
a.m.
(EST)
on
April 1.
^
^t
rate
u
? jj-f.
,
of additional
of three
new
shares for each
10
equipment. Underwriter—Blyth & Co., San
Francisco, Calif., and New York.
★ Wix Accessories Corp., Gastonia, N. C.
March 3
stock,
Price
(letter of notification) 10,000 shares of common
to be offered for subscription by stockholders.
$18
share.
Underwriter—None.
per
Proceeds—For
working
* Wonder Lode Claims, Inc., Salmon, Ida.
(letter of notification) 10,000 shares
March 4
capital.
of capital
Price—$1 per share. Proceeds—To develop claims.
Address—Box 756, Salmon, Ida. Underwriter—None.
stock.
bonds, series E,
competitive bidding. The bonds will be dated
1952 and mature not later than
not earlier than March 1,
Proceeds—To pay at maturity $49,988,000
consolidated first mortgage bonds due
July 1, 1952, and the remainder used for capital improve¬
Underwriters—Expected to be The First Boston
ments.
Corp. and Halsey, Stuart & Co. Inc.
Cinecolor Corp.,
Feb.
it
29
will vote
Burbank, Calif.
authorizing
on
stockholders
announced
was
an
March
on
17
issue of $425,350 of 5% five-
debentures (with stock purchase warrants) to be
for subscription by common stockholders on a
year
offered
Proceeds—To acquire a controlling inter¬
B., Ltd., 26% owned, and for working
Underwriters—Latest financing handled by H.
Co., New York.
rata basis.
pro
est in Cinecolor G.
capital.
Hentz
&
Jan. 21 it
rights to its
Power Co.
company may offer later this year
stockholders to purchase additional
(sufficient to raise $300,000 or less). Pro¬
reported
was
common
stock
retire
ceeds—To
Can Co.
Central
Colorado
bank
and for
loans
new
construction.
Underwriter—None.
mately 966,000 shares of common stock is expected, with
offering late in March or early in April. This is in ac¬
cordance with a plan filed by Mission Oil Co. and its
tional
holding
directors approved
5
common
stock which would be offered to common
stockholders for subscription.
The details of the financ¬
ing plan will be completed and announced at an early
date.
Stockholders will vote April 29 on approving
financing plans and proposed 4-for-l split-up of pre¬
ferred and common stocks. Underwriter—Morgan Stan¬
ley & Co., New York.
•
Colorado
March
it
3
subsidiary, Southwestern Development
to effectuate compliance with the Holding
Company Act. Underwriter — Union Securities Corp.,
Columbia
and
&
issue of debentures
was
offered to
Last
debentures.
stockholders at par,
without underwriting.
•
Bank of Passaic & Trust
Co., Passaic, N. J.
March 5 stockholders approved the issuance of $1,000,000
of 3^2% convertible preferred stock (par $25). The'y will
rights to subscribe to the 40,000 shares in the
3.64 preferred shares for each share of common
held.
Bell
Jan.
it
program
of
announced
was
that
for next three years
an
construction
calls for the expenditure
company's
$247,000,000 of which about $81,700,000 will be spent
$60,000,000 of debentures due 1977. Pro¬
repay $20,000,000 of bank loans and for 1952
Underwriters—To be determined
Probable bidders: Halsey, Stuart
Inc.; Morgan Stanley & Co. Bids—To be opened
construction program.
by competitive bidding.
Co.
April 15.
if Columbus & Southern Ohio Electric Co.
March 7 it was announced company expects to enter the
about the middle of 1952
shares of new common stock. Pro¬
permanent financing market
with 150,000 to 200,000
construction
ceeds—For
Read & Co.,
March
be
1 it
program.
Light & Power Co.
announced that it is presently
was
Dec. 24 it
Union Securities Corp.
cient to raise approximately
March
13
the
company
being made for
a
announced
plans
tentative
or
are
early
in 1953 to raise funds to repay bank loans and to provide
at least a portion of new capital requirements for 1953.
Prior to this
effect
full
financing, the
conversion
of
company
the
hopes to be able to
remainder
of
its
two
con¬
•
California-Pacific
Utilities
was
stated that company plans to issue
stocks and bonds
both
bonds
to
be
&
Co.
end
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred
Proceeds—For new construction. Offering-
company
debentures
Consumers Power Co.
Proceeds will be used to pay for
additions and improve¬
thority to issue
to
Case
Jan.
property.
Traditional Underwriters
Co., Inc., San Francisco, Calif.
(J. I.)
April 17
was
announced
on
increasing the authorized
—
First
1,200,000 shares,
that
stockholders
common
will
on
vote
stock from
par
issuance of two
stockholders
one
new
share
for
each
five
shares
•bonds
applied to Michigan P. S. Commission
due
and sell $25,000,000
1987.
for au¬
of first mortgage
Proceeds—Together with other avail¬
funds, to finance $53J)00,000 construction program
for 1952. Underwriters—To be determined by competi¬
$25, to 4,000,000 shares, par $12.50,
new shares in exchange for each
share presently held. Following split-up, it is planned fo
set aside 100,000 of the new shares for sale to employees
under stock purchase options, and to offer to common
and
29
able
Co.
it
18
& Co. Inc.; White, Weld
Corp. (jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston Corp., Alex. Brown & Sons and John C.
Feb.
California
$22,000,000. Underwriters—
by competitive bidding.
determined
The First Boston
within
ments
and sell
amount^ suffi¬
Probable bidders: Halsey, Stuart
expects to offer about
the next two months.
of
an
Expected in March or April.
Co.
reported
was
during 1952 to
stock sale.
vertible preference stock issues.
Feb. 29 it
Light & Power Co. of
Baltimore
For
public financing late in 1952
estimated
required during the latter half of 1952.
Consolidated Gas, Electric
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and
(jointly); The First Boston Corp.
Underwriter—Dillon
Inc., New York.
approximately $11,000,000 of additional capital will
that
in 1952. Underwriters—For bonds to be decided by com¬
if California Electric Power Co.
,
System, Inc. (4/15)
application with SEC for authority to
sell
Connecticut
Telephone Co. of Pennsylvania
2
Gas
March 11 filed
exceed
convertible
*•
New York.
ceeds—To
of
Co.
Gas
reported early registration of approxi¬
company
Telegraph Co.
Feb. 20 directors voted to place before stockholders on
April 16 a proposal to authorize a new issue of not to
$550,000,000
Interstate
was
Co. designed
issue
American Telephone &
shares
supplied by amendment. Proceeds—•
w°rking capital and used for purchase
sought ICC permission to issue $52,-
company
the raising of $50,000,000 of
new money to provide for the company's plant improve¬
ment program and for additional working capital. C. H.
Black, Chairman, said the board's plans call for provid¬
ing half of the new money through the sale of debentures
and the remaining $25,000,000 through the sale of addi¬
Feb.
$2,000,000
if Western Air Lines, Inc. (4/7)
March 10 filed 165,049 shares of common
stock (par $1),
to be offered for
subscription by stockholders of record
23
500,000 of first and refunding mortgage
without
common
Underwriter—Hill, Thompson & Co., Inc., New York.
ratio of
Welex Jet
Jan.
Bros. & Hutzler.
mon
that the company
be offered
25.
rr»
Brothers; The First Boston Corp.; Blyth & Co.,
American
United Air Lines, Inc.
V
Morgan Stanley & Co.; Kuhn, Loeb & Co.;
Co. Inc.;
&
Chicago,
of 4% non-callable
(4/22)
announced company plans to issue
about $12,000,000 of first mortgage bonds.
Lehman
.
Rock Island & Pacific RR. (3/26)
Bids will be received by the company, Room 1136, La
Salle Street Station, Chicago 5, 111., up to noon (CST) on
March 26 for the purchase from it of $6,000,000 equip¬
ment trust certificates, series M, to be dated April 1, 1952
and to mature semi-annually to and including April 1,
1967. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
•
Sept. 1, 1962.
Power Co.
Alabama
Feb. 8 it
Ry.
sought ICC authority to issue and sell
$6,825,000 0$ equipment trust certificates to be dated
May 1, 1952 and payable in 15 annual instalments from
1953 to 1967, inclusive. Probable bidders: Halsey, Stuart
& Co., Inc.; Salomon Bros. Hutzler; Bear,
Stearns &
mined by competitive
construction program.
J.
Underwriters—To be deter¬
program.
any
this
Fall of about $5,500,000 first mortgage bonds.
Latest
bond
financing was done privately in March,
1951
through Kidder, Peabody & Co.
by competitive bidding. Probable bidders: Halsey, Stuart
Jan.
shares (130,300 shares outstanding) to 225,to meet future capital re¬
from 150,000
March 7 company
Aeroquip Corp.
(with
oversubscription privilege); rights to expire March 28.
price—$32.50 per share. Proceeds—To repay bank loans
and for investments in and advances to subsidiaries and
•
Thursday, March 13, 1952
.
if Chicago & North Western
Prospective Offerings
par) be¬
stockholders of record March 5
an
capital.
18
shares of common stock (no
at rate
working
Bound
Co.
Feb. 15 filed 409,689
■
(Thomas) Orchids, Inc.,
Brook, N. J.
(letter of notification) 2,000 shares of capital
stock (par $1).
Price—$49 per share.
Proceeds—To
Hope Y. Haynes, the selling stockholder. Underwriter—
None, but Smith, Barney & Co., New York, will act as
broker.
No public offering is planned.
Young
Feb.
.
.
held.
Price—To be determined later.
tive
bidding.
Probable bidders; Halsey, Stuart
& Co.,
Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.; The First
Boston Corp. and Harriman Ripley & Co., Inc. (jointly);
White, Weld & Co. and Shields & Co. (jointly).
tration—Expected to be filed about middle of
Bids—In
Regis¬
March.
April.
if Copperweld Steel Co.*
March 3 it
was
announced stockholders on April 30
Underwriters—Probably
Morgan Stanley & Co. and Clark, Dodge & Co.
vote
if Central Hudson Gas & Electric Corp.
will
the authorized preferred
March 7 it
25
on
was
announced stockholders will vote March
increasing authorized preferred stock
(par $100)
on
increasing the authorized indebtedness from $5,-
000,000 to $15,000,000
from
(none presently outstanding) and
stock (par $50) to 137,727 shares
37,727 shares, which are all outstanding.
Underwriter—Riter & Co., New York.
Traditional
Volume 175
Number 5098
.
.
The Commercial and Financial Chronicle
.
(1117)
A Crane Co., Chicago, III.
March 5 it
was
A Gulf States Utilities Co.
reported that company is understood to
be planning sale of additional
mediate future.
and
Underwriters
securities in the not im¬
—
Morgan Stanley & Co.
Clark, Dodge & Co., New York.
Dallas
Power &
of
President*, announced that sub¬
approval, this company expects to sell in
April enough common stock to yield $6,500,000. Under¬
writer—To be determined by competitive
bidding. Prob¬
FPC
able bidders:
Light Co.
Jan. 23 company was reported to be planning issuance
and sale
Martin
March 5, Roy S. Nelson;
ject to
$6,000,000 first mortgage bonds, with regis¬
Stone & Webster Securities
Corp.; Merrill
Lynch, Pierce, Fenner & Beane and Lehman Brothers
(jointly); Blyth & Co., Inc.
.
tration expected in the near future. Proceeds—To be used
for construction program.
Underwriters—To be deter¬
Jan. 22 it
mined by competitive bidding. Probable bidders:
Hammermill
Paper Co.
Jan.
plans public offering
(par $5) following proposed
presently outstanding 287,020
stockholders.
Feb.
split-up
of
its
ley
shares authorized by the stockholders on Feb. 25.
Pro¬
ceeds—To be used for expansion program.
Traditional
Erie RR.
Feb. 28 it
(4/1)
reported
plans to issue and sell
about $1,800,000 equipment trust certificates to mature
semi-annually in a period of 10 years on or about April
was
company
1.
Probable bidders: Halsey, Stuart & Co.,
Bros. & Hutzler; Bear, Stearns & Co.
Ar First National
March
10
Bank
stockholders
tional shares of
Portland
of
of
...
200,000
addi¬
stock
(par $12.50) to common
stockholders of record April 30 at rate of one new share
for
each five
shares
held; rights to expire
on
May 29.
Unsubscribed shares would be purchased by Transamerica Corp., which owns a controlling stock interest in
the bank.
Price—$30 per share.
Proceeds—To increase
capital and surplus.
Florida
Power
Jan. 11 it
be
program
sale of bonds
announced that additional
to
stockholders, with Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane acting as agents.
Power &
directors
Idaho
of
10-year
a
Power
Co.
Light Co.
approved
—
stock
common
financing in April, 1949, was handled by
Co., Inc.; Lazard Freres & Co.; and Wegener
Daly Corp. Proceeds—To repay bank loans and for
Blyth &
&
construction
program.
to
cost
$332,000,000.
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Beane; Lehman Brothers;
Shields & Co.; The First Boston Corp.; Carl M. Loeb,
Rhoades & Co. and Bear, Stearns & Co. (jointly); White,
; Weld & Co.
Illinois Central RR.
,
it
24
16, the directors authorized, pending a favorable
market, the issue and sale of up to $25,000,000 of consoli¬
dated mortgage bonds. Underwriters —^May be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co.
Co.
Inc.; Kuhn, Loeb & Co.; Morgan Stanley
Proceeds
To
—
C
a'.
retire
debt
announced
plans to increase
authorized common stock from 300,000 shares (259,422
shares outstanding) to 500,000 shares of $2.50 par value.
company
TThe
company states that "there is no present plan of
capital financing either of an equity type or loan." The
directors, however, "are studying several plant expan¬
sion programs which may eventually require more
capi¬
tal." A group headed by Estabrook & Co. underwrote an
-
■
issue
of
common
stock
to
stockholders
in
April, 1951.
Stockholders will meet Feb. 21.
International
Bank for
Reconstruction and
Development
Feb.
it
5
("World Bank")
reported bank expects to
was
issue and sell
$50,000,000 to $100,000,000 additional bonds in April or
May.
-International Utilities Co., Ltd.
Feb. 28 it was reported that company was understood to
be
considering
some
financing.
new
Traditional Under¬
Sherrerd, Philadelphia, Pa.
Kansas City Power & Light Co.
v^T'v'.>
4
company
announced that it plans to issue
and sell in 1952 about $12,000,000 principal amount first
mortgage bonds (this is in addition to present preferred
and common stock financing. Underwriters—To be de¬
termined
by competitive bidding.
Probable bidders:
■
General
Fuse
vertible
Co., South River, N. J.
preferred
stock
with
several
underwriters.
A
total of 50,000 shares were recently offered to common
stockholders at par ($5 per share).
General
Feb.
it
6
sell this
of
Public Utilities Corp.
was
common
the corporation is expected to
approximately 530,000 additional shares
reported
summer
stock/
Stockholders
on
proposal to authorize issuance of
requiring preemptive rights.
sold
at
April 7 will vote
common
on
stock without
Underwriters—If stock
is
competitive
bidding, probable bidders may in¬
Brothers; The First Boston Corp. In
July, 1951, Merrill Lynch, Pierce, Fenner & Beane acted
as clearing
agent for an offering of common stock to
clude:
Lehman
stockholders.
Georgia Power Co.
Feb.
it
8
was
(7/8)
announced
company plans issuance and
of first mortgage bonds. Proceeds—
construction. Underwriters—To be determined
sale of $20,000,000
For
new
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Lehman Brothers; Kuhn, Loeb & Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Shields
&
and
Co.
Salomon
Bros.
&
Hutzler
(jointly);
Corp. and Equitable Securities Corp.
(jointly); Harriman Ripley & Co. Inc. Bids—Expected
on July 8.
Union
Securities
Globe-Wernicke Co.
Feb. 26 it
vertible
tached.
stock.
Proceeds—To refund outstanding 7% preferred
Underwriters—May include Westheimer & Co.,
sell
new
it
was
$7,000,000
(6/24)
announced
plans to issue and
of first mortgage bonds. Proceeds—For
construction.
company
Underwriters—To be
determined by
ble Securities Corp.;
.
&
Hutzler
Securities
Union
and
Corp.
(jointly); Equitable Securities Corp.; Lehman Brothers
Bear, Stearns & Co. (jointly); Harriman Ripley &
Co., Inc. Proceeds—For new construction.-
and
Kansas Gas &
Metal
Feb. 14 it
Pro¬
Underwriter—Reynolds
Hydrides, Inc., Beverly, Mass.
was
reported company plans to issue and sell
50,000 to 100,000 shares of common stock.
Pro¬
ceeds—For expansion and
working capital. Underwriter
—D. A.
Lomasney & Co., New York. Registration—Ex¬
pected in near future.
>
from
»
,
/
Metals & Chemicals
Corp., Dallas, Tex.
Jan.
23
it
(4/3)
<
announced company plans
registration
about March 14 of 162,500 shares of
common stock
(par
10 cents). Price—To be
supplied by amendment.
was
Pro¬
ceeds—For
mill
new
and
equipment and for working
Underwriter—Beer & Co., Dallas,
Texas, and
capital.
Blyth & Co., Inc.; Kuhn, Loeb &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Salomon
Bros. & Hutzler and Drexel & Co. (jointly). Bids—Expected to be opened on
or
about June 24,
-
*
,,r
Middle
Oct. 31
East
it
was
decided. Investment groups had
been said to have been
on a reported $12,000,000 in bonds
of common stock. Probable bidders
forming
Halsey,
Stuart
Securities
&
Co.
plans to expand it»
to register it A
the SEC preliminary to a
large-public
offering, the funds to be used to build new industrial
projects in Israel.
in
Inc.;
Union
Corp. and Stone & Webster Securities Corp.
Beane, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); The First Boston Corp. Bids—Tentatively ex¬
pected on June 9 or 10.
Kentucky Utilities Co.
was reported company plans to issue and sell
in April or May $12,000,000 30-year first mortgage bonds,
series D. Underwriters—To be determined by competi¬
Dec. 10 it
tive
bidding. Probable bidders:- Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Blyth & Co., Inc.; Union Securities Corp. and
Merrill Lynch, Pierce, Fenner & Beane (jointly).
(Ernst), Inc., New York
was reported that the Office of Alien Property,
120
Broadway, New York, N. Y., plans to sell late in
March all of the outstanding capital stock of this com¬
which distributed
March 5
it
was
Leica cameras in the United
include: Allen & Co.
announced
its
1952
company
plans to finance in
$41,000,000
sale of $35,000,000 of new
The First Boston Corp.
Smith, Barney & Co,
.%
future
and
(jointly); W. C. Langley & Co.;
.
/:
■"
.
•
•
-
-
v.
.
- .
>
,=
Halsey,
Inc.; The First Boston
Corp.; White, Weld & Co.; Harriman Ripley &
Co., Inc.
Bids—Expected on or about May 20.
National Gypsum Co.
Feb.
20
it
was
announced
stockholders
will
vota
proposal to increase the authorized com¬
2,500,000 to 5,000,000 shares in order
"to prepare
company for the opportunities and
require¬
ments of the
coming years." No immediate plans have
been made for the issuance of
any additional common
stock.
Traditional Underwriters—W. E.
March 25
mon
on
stock
a
from
Hutton
&
Cincinnati, Ohio, and Blyth & Co., Inc., New York.
C<k,
National Research
Corp., Cambridge, Mass.
Jan. 21 it was announced
stockholders will vote March,
21 on
increasing authorized capital stock from 125,000
shares to 600,000
shares, to provide, in part, for payment
of a 200% stock dividend. It
is also planned to make
a public
offering of a portion of the proposed authorized
shares
when
financing in
market
1946
conditions
was
made
to
are
favorable.
Latest
common
stockholders.
working capital. Under¬
writers— Probably
Paine,.. Webber, Jackson & <Curtii
and The First Boston
Corp. Offering—Expected in May.
A National Supply Co.
Proceeds would
be
added
to
announced stockholders will vote
April 2
was
increasing authorized indebtedness from
$20,000,000
$50,000,000. There are no immediate plans for sale of
any securities, but company may start
using long-term
bank loans to secure
working capital instead of relying
on
to
short-term loans.
Nevada
Natural
Gas
Nevada
Feb.
8
Pipe Line Co.,
Las
Vega%
applied to FPC for authority to con¬
struct a 114-mile pipeline from near
Topock, Ariz., to
Las Vegas,
Nev., at an estimated cost of $2,400,880, to
be financed by sale of
$1,600,000 first mortgage bonds,
$500,000 preferred stock and $402,500 common stock. /
•
company
New
British
Dominion Oil Co., Ltd.
reported company plans offering of about
1,000,000 shares of additional common stock. Proceeds—
To be used for
exploration development, etc. Properties
are located
primarily in British Columbia, Alberta, and
Montana. Underwriter—Allen &
Co., New York.
March 5 it
was
New England Power Co.
Jan. 11 company received from SEC
authority to increase
authorized bank borrowings from
$12,000,000 to $16,000,000. A major portion of this indebtedness
may be
financed through issuance of common
stock to parent
(New England Electric System) and first
mortgage bondt
early in 1952. Underwriters — For bonds, to be
deter¬
mined by competitive
bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Lehman
Brothers; Blyth &
Co., Inc.;
Equitable Securities Corp. and Blair, Rollins &
Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Harris
man
Ripley & Co., Inc.; The First Boston
Corp.; Kuhn,
Loeb & Co., Union Securities
Corp. and Salomon Bros. £
Hutzler
(jointly); Kidder, Peabody &
Co.
Weld & Co. (jointly).
construction program by the
securities. Underwriters—For
any common stock, may be Blyth & Co., Inc. and The
First Boston Corp. (jointly); for any preferred, W. C.
Langley & Co., and for any bonds to be determined by
competitive bidding, with the following probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
part
near
mined by competitive
bidding. Probable bidders:
Stuart & Co. Inc.; Blyth &
Co.,
bonds:
Brothers;
Lehman
for
(jointly); Glore, Forgan & Co. and Goldman, Sachs &
(jointly); Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); The First Boston
Corp. Probable bidders for stock: Union Securities Corp.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
pany,
the
National Fuel Gas Co., N. Y.
(5/20)
Jan. 29 company applied to SEC for
authority to issue
and sell $18,000,000 of
sinking fund debentures due 1977.
Proceeds—To repay $11,000,000 bank loans and
to loan
$7,000,000 to subsidiaries. Underwriters—To be deter¬
and 200,000
Co.
Jan. 21 it
Corp., N. Y.
with
on
shares
Industries
announced company
capitalization
securities
March 7 it
(6/9-10)
Electric Co.
Feb. 29, Murray Gill, President, announced that company
will probably bring an offering of securities to market
in the next few months, but the amount is still un¬
A Long Island Lighting Co.
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Coffin & Burr, Inc.; The First Boston
Corp.;
Kidder, Peabody & Co.; Union Securities Corp.; Equita¬
f
Bros.
States. Probable bidders may
Gulf Power Co.
8
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co. (jointly); The First
Corp.; White, Weld & Co. and Shields & Co.
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
Boston
Leitz
reported company may issue and sell con¬
debentures, or debentures with warrants at¬
was
Cincinnati, O.
Feb.
Jan.
omon
Jan. 28 Nelson O. Burt, President, announced company
is discussing the marketing of unsubscribed 5 Yz% con¬
&
maturing in next, four
and to replace depleted working capital.
writer—Butcher &
was
Feb. 12.
on
preferred stock.
•.
Nov.
_
Dec.
withdrawn
were
ceeds—For expansion program.
& Co. had been named for
others.
A Indianapolis Power & Light Co.
V
March 7 company applied to Indiana P. S. Commission
for authority to issue and sell 196,000 additional shares
of common stock and 30,000 shares of preferred stock to
finance a $13,800,000 expansion program.
a
estimated
program
Mineral
■<■■■"
$20), but no preferred stock. Price—At a minimum of
$35 per share net to company. Underwriters
Latest
years
Probable bidders for bonds:
Foote
t
Feb. 27 T. E. Roach, President, announced that the com¬
pany's present plans consist of the sale this summer of
about 225,000 additional shares of common stock
(par
$22,100,000 construction
budget for 1952 and $27,800,000 for 1953. This is part
r
new
common
Company has borrowed
$4,000,000 under a bank credit recently arranged which
provides for short-term bank borrowings of not more
than $10,000,000.
Previous bond financing was done
privately.
Common stock may be offered to common
11
preferred stock issue
construction.
stock and first mortgage bonds.
Feb.
Proceeds—For
plans to issue and sell to
'"v
Corp.
capital needed will be obtained from the sale of
Florida
(probably privately).
company announced
stockholders, of record April 10, approxi¬
mately 110,000 shares of common stock on a l-for-4
basis; rights Will expire on April 28. Plans to issue
$20,000,000 financing plan which will include the
a
11
common
Underwriter—None.
financing will
complete the company's construction
and it is contemplated that the balance of new
was
necessary
on
six
a
Chicago, 111.
Hartford Electric Light Co.
Feb. 18 it was announced stockholders will vote March 4
Inc.; Salomon
(4/30)
sale
approved
common
Underwriter—A. G. Becker & Co. Inc.,
within
Merritt-Chapman & Scott Corp. (4/10)
stock
Equitable Securities Corp.; Lehman
Brothers; Union Securities Corp.; Kidder, Peabody & Co.;
Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Beane. Bids—Expected late May or early June. : - -
estimated
an
a
months.
Meeting—Stockholder#
will vote April 2 on
approving financing plan.
common
Inc.;
plan to sell
sale of debentures to
help meet
and from sale of stock to retire
production programs,
debentures
two-for-one
Co.,
Co.
Underwriter—Smith, Barney & Co., New
York. Proceeds—From
of additional
&
L.)
announced
group of pri¬
vate investors and additional
common stock to common
Stuart & Co. Inc.; The First Boston Corp.; Harriman Rip¬
Halsey,
(Glenn
company
$6,000,000 of convertible debentures to
announced company
was
10
45
New England Telephone &
Dec. 20, F. A.
nent
and
Telegraph Co.
Cosgrove, Vice-President, said
financing
White,
a
perma¬
will have to be undertaken in
1952 to repay about
$43,000,000 short-term bank borrow,
ings. Underwriters—For bonds may be
determined by
competitive bidding. Probable bidders:
Halsey, Stuart i
program
Co. Inc.; Morgan
Stanley & Co. In case of common
financing there will be no underwriting.
L/
:
a
.
Continued
'
on
stock
page 46
ir'
46
The Commercial and Financial Chronicle
(1118)
Continued from page
writers
Bell Telephone Co.
Feb. 18 company filed a new $70,000,000 financing pro¬
gram with the New Jersey Board of Public Utility Com¬
missioners, which will include $20,000,000 of long-term
bonds.
Proceeds—From sale of bonds and from sale of
New Jersey
<$50,000,000 of common stock to parent, American Tele¬
phone & Telegraph Co. will be used for new construc¬
tion.
Underwriters—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co.; Kuhn, Loeb &
bidding.
Offering-
Co.; Shields & Co.; The First Boston Corp.
Expected early in May.
New Jersey
Feb.
it
26
was
Natural Gas Co.
reported company, formerly known
as
of $12,500,000
County Gas. Co., plans issuance and sale
first mortgage bonds (to be placed privately), $2,000,000
of preferred stock and 200,000 shares of common stock
to provide funds for acquisition of gas properties of
Jersey Central Power & Light Co. at an estimated price
of $14,500,000. Underwriter—Probably Allen & Co., New
Power Co.
Jan. 16, B. F. Braheney,
March 6
President, announced that com¬
will have to raise between $30,000,000 and $32,500,000 this year to finance its construction program
About two-thirds of the amount needed will be in the
form of debt issues and the balance common stock (about
1,100,000 shares) the latter issued first to common stock¬
Underwriters—To be determined by competi¬
holders.
Probable bidders for stock and bonds:
& Co.; The First Boston Corp.; Glore,
Co.; Lehman Brothers and Riter & Co.
bidding.
Smith
Barney
&
Forgan
(jointly); Equitable Securities Corp.; Union Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Prob¬
able bidder on bonds only: Halsey, Stuart & Co. Inc.
Natural
Northwest
Gas
Co.
7 company
with
connection
mission
project is approximately $92,000,000.
UnderwriterMorgan Stanley & Co., New York. Financing—Not ex¬
pected until after Provincial elections in April.
Pacific Northwest Pipeline Corp.
Jan. 7 the company
build
applied to the FPC for authority-to gas pipeline from southern
2,175-mile natural
a
Texas
Pacific
the
to
Northwest
at
estimated
an
cost
$174,186,602. The line is sponsored by Fish Engineer¬
ing Corp. of Houston, Tex.
Probable underwriters;
of
White, Weld & Co. and Kidder, Peabody & Co., New
York. (See also accompanying item on "Spokane Gas &
Fuel Co.")
loans
Pan American
to
Sulphur Co.
in the author¬
stock from 1,500,000 shares (par 10 cents)
common
2,000,000 shares (par 70 cents). A part of the increase
expected to be offered for subscription by stock¬
is
holders.
Proceeds
be used for construction
would
and
exploration program in Mexico.
Pennsylvania
Electric Co.
about $26,000,000 for expansion in 1952, to be
in part, by the sale of about $9,000,000 first
financed,
mortgage
it
5
was
announced
bonds, $4,500,000 of preferred stock and $4,500,000 of
stock (the latter issue to parent, General Public
Utilities Corp). Underwriters—For bonds and preferred
common
stock to be determined by competitive bidding.
Probable
(1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co.; Union Securities Corp. and White.
Weld & Co. (jointly); Kuhn, Loeb & Co.; A. C. Allyn
& Co., Inc.; Equitable Securities Corp.; Shields & Co
and R. W. Pressprich & Co. (jointly). (2) for preferredSmith, Barney & Co. and Kidder, Peabody & Co
(jointly); W. C. Langley & Co. and Glore, Forgan & Co.
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co., Inc. Offering—Expected in mid-year.
v
bidders:
Peoples Gas Light & Coke Co.
Feb. 26 it
was announced stockholders will vote April 3
increasing authorized capital stock (par $100) from
1,000,000 shares (933,578 shares outstanding Dec. 31,
1951) to 2,000,000 shares. The company has no present
plans for issuing any of the additional authorized shares,
but they will be available for issuance either for cash
on
for
consideration
a
other than cash without further
action of the stockholders.
Philadelphia Electric Co.
Feb. 6
be
it
was
announced
stockholders
asked to approve an increase in
of the company to
on
the
April 9
authorized
will
in¬
debtedness
430,000.
$400,000,000 from $265,No additional financing is contemplated until
1953.
was
announced
stockholders will vote April
17 on increasing the
authorised common stock from 1,280,000 shares to 3,280,000 shares (1,045,500 shares pres¬
ently outstanding). The new shares would be issued
When directors decide, in connection with
diversification
program^No immediate financing is
planned. Traditional
Underwriter—Kuhn, Loeb & Co., New York.
Public Service Co. of
March 4 it
was
Indiana, Inc.
announced stockholders will vote
plan to create an issue of 800,000 shares of cumu¬
lative preferred stock (par
$25), of which between 400,000 and
29
800,000 shares (probably convertible into com-,
expected to be initially offered. Proceeds—To
are
it
—
Texas
of
time
and
will
of issuance
on
April. Proceeds—To retire $12,800,working capital. Underwriters—Stone
Corp. and White, Weld & Co., New
of
reported company
$8,000,000 of first
planning issuance
was
mortgage
bonds
and
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb &
Co., Lehman Brothers and
Blyth & Co., Inc. (jointly); Salomon Bros. & Hutzler;
Harriman Ripley & Co., Inc.; Union Securities Corp.Hemphill, Noyes, Graham, Parsons & Co. and Drexel &
Co. (jointly); Kidder, Peabody & Co. and Merrill
Lynch,
Pierce, Fenner & Beane (jointly); The First Boston
Corp.
Texas-Ohio
Gas
Co., Houston, Tex.
applied to FPC for authority to con¬
struct a 1,350-mile natural gas transmission line extend¬
ing from Texas into West Virginia. The project is esti*
mated to cost $184,989,683.
Underwriter—Kidder, Pea*
body & Co., New York.
Oct.
market
conditions, and have not as yet been determined, it is
contemplated that approximately 30% of the new capi¬
tal will be raised through the sale of common stock and
the remainder through the sale of
sub¬
$5,000,000 of debentures, with registration expected in
April for bidding in May.
Proceeds—For construction
program.
Underwriters—To be determined by com.-
:
depend
was
sale
and
common
amounts
a
Electric Service Co.
Jan. 23 it
To be
$60,000,000 will be raised in 1952 through the
stock and debenture bonds. While the
wards of
sale
now
York.
is expected that up¬
that it
announced
was
company,
& Webster Securities
by
debenture bonds. The
17
company
Transcon
Lines, Los Angeles, Calif.
,
■
,
will be used for the company's construction
program. In November, the company sold through Mor¬
gan Stanley & Co., Drexel & Co. and Glore, Forgan &
Co. an issue of 249,942 shares of 4.70% cumulative pre¬
$200,000 market value of new common stock (around
30,000 shares), first to present common stockholders.
ferred stock
per
Feb.
proceeds
(par $100).
convertible class A
offered for subscription by
$1.25
par
which will be
holders at rate of
one
common
be
Feb.
•
■
Bros. &
Nov.
it
16
1952, vote
(H. H.)
stockholders
will
in
Dec. 12 it
which
000,000 shares in order to make additional stock available
corporate purposes as acquisition of new proper¬
ties, to provide additional capital funds or declaration o?
it
was
to 5,000,000 shares,
i
' '
Proceeds—For working capital and
Jan.
raise
California
Edison
March 8 company applied to
bank
increase
•
investments
in
subsidiaries
in
to
reported company is expected to do
some
(Mo.)
Feb. 20 company applied to Missouri P.
for authority to issue $900,000 of 3%%
S. Commission
first mortgage
bonds, 1,620 shares of preferred stock at par ($100 per
share) and 10,000 shares of common stock (no par) at
share.
care
of
proposed
was
announced stockholders will vote April 15
was
Electric
Power Co.
reported company plans issuance and sale
common
stockholders
of
additional
common
stock
share for each six shares
one new
Proceeds—To repay bank loans and for new con¬
struction.
Underwriters—For bonds, to be determined
fur¬
equity financing before June 30,1952. Traditional under¬
writer: Blair, Rollins & Co.
per
take
to
$12,500,000 1st mtge. bonds amd
approximately $14,000,000 more through the sale
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers and Salomon Bros. & Hutz¬
ler
(jointly); Equitable Securities Corp.; Merrill Lynch,'
Pierce, Fenner & Beane; Glore, Forgan & Co.;. The First
Boston Corp.; Union Securities Corp. and Harriman
Rid¬
ley & Co., Inc. (jointly). The common Mock offering may
not be underwritten.
>
Wisconsin Power & Light Co.
Jan. 23 it was reported company is planning issuance and
sale of $8,000,000 of first mortgage bonds and $2,000,000
<
of
convertible preferred stock (to preferred stockhold¬
ers) and additional common stock (to be Offered first to
stockholders on a 1-for-10 basis,
Barney & Co., New York, and Robert W.
Inc., Milwaukee, Wis., probably acting as
agers fpr both issues); Underwriters—For
common
$10
funds
held.
Underwriters—
Southern Union Gas Co.
was
other
in May or June of about
is planning to issue
additional common stock. Pro¬
filed with FPC a $76,000,000 expan¬
bring natural gas into its Alabama,
Georgia and Mississippi service areas.
Dec. 19 it
and
Wisconsin
to raise
company
program
loans
March 5 it
May be determined by competitive bidding. Probable
bidders; Lehman Brothers; Morgan Stanley & Co.; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Blyth & Co., Inc.; Union Securities
Corp. and Equitable Securities Corp. (jointly); Harriman
Ripley & Co. Inc.
sion
that company is considering plans to
$4,500,000 from the sale of additional com1-
shares
company
therance of their construction programs.
March 3
was
reported
about
probably at the rate of
announced
and sell later this year
ceeds—To
be
may
On Feb. 15 it
spen<l
in 1952, of
raised through new
reported directors have
construction
new
increasing common stock (par $10) from 4,200,000
(about 4,123,000 outstanding) to 7,500,000 shares.
on
Southern Co.
was
12
Feb. 12 it
to
it
.
more for
$30,000,000
Westinghouse Air Brake Co.
Co.
California P. U. Commission
struction program.
Underwriters—Previous equity fi¬
nancing was underwritten by The First Boston Corp.
and Harris, Hall & Co. (Inc.).
Offering—Expected in
April.
■
:
*
8
.
$6,000,000 expansion program.
seeking exemption from bidding of a proposed offering
of 800,000 shares of common stock.
Proceeds—For con¬
Feb.
(par $20) at rate of
mon stock to its stockholders
(there are presently out¬
standing 734,400 shares). Underwriters—The First Bos^ton Corp. and Johnston, Lemon & Co. handled the offer¬
ing last year to stockholders. Proceeds—Together with
Co., Los Angeles, Calif.
Southern
stock
Washington Gas Light Co.
.
of defense orders.
Under¬
writers—Smith, Barney & Co., New York, and William
•
before March 24 for 100,000
Co. Inc.; Union Securities
Corp.; Salomon Bros. &
Hutzler; Stone & Webster Securities Corp.; White, Weld
Co.; Kuhn, Loeb & Co. and Wertheim & Co. (jointly).
finance increased output
R. Staats &
or
&
and Smith, Barney & Co.
:
be announced later.
on
common
&
it Solar Aircraft Co., San Diego, Calif. "
March 10 filed an application with SEC for the issuance
of 120,000 shares of common stock (par $1).
Price—To
to
<
stock, probably Stone & Webster Securities Corp.
bonds, to
be
determined
by competitive
bid¬
ding, with the following probable bidders: Halsey, Stuart
increasing the authorized
& Beane;
.
For
common stock from 3,and the authorized indebt¬
$4,000,000 to $25,000,000. The company said
it will announce later any plans for future financing.
Underwriters—Drexel & Co.; Merrill Lynch, Pierce, Fen¬
,
share for each
For
stockholders will vote April
announced
edness from
ner
one
approved plans to issue and sell in June approximately
495,000 shares of common stock (first to stockholders).
A bond sale is expected in the fall.
Underwriters-**
stock dividends.
7
;or
about
financing.
it Scott Paper Co.
on
(par $50), first to stock¬
announced that company expects to
was
$40,000,000
from
for such
March
(3/17)
Virginia Electric & Power Co.
April
proposal to increase the authorized com¬
250,000 shares (all outstanding) to L-
on a
stock
Ang.
will offer for sale
Price—$50 per share.
Proceeds—To increase capital and surplus. Underwriter
—Blyth & Co., Inc.
'
Co., Pittsburgh, Pa.
announced
was
company
share for each six shares held.
one
Hutzler; Bear, Stearns & Co.
Robertson
rights to subscribe
additional shares of
semi-annually to and including April 15,
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
mon
announced
was
mid-March.
United States (National Bank of Portland (Ore. )\
March 5 company offered stockholders of record March
4
certificates, series T, to be dated April 15; 1952
and to mature
1967.
it
14
in
Co., Chicago, 111.
and Wm. R. Staats & Co.
the company, Room 423, Read¬
ing Terminal, Philadelphia 7, Pa., up to noon (EST) on
March 27 for the purchase from it of $8,340,000 equip¬
ment trust
&
shares held; rights to expire on April 8.
Price-*.
$120 per share.
Proceeds—To increase capital and sui>
plus.
Underwriters—Blyth & Co., Inc.; Stern, Frank,
Meyer & Fox; Lester, Ryons & Co.; A. W/Morris & Cot,
(3/27)
Reading Co.
Offer—Expected
7%
troit, Mich.
Bids will be received by
public.
10,000 shares of capital stock
Underwriter—A. H. Vogel & Co., De¬
working capital.
share to stockholders and about $7.12%
per
to
plans to offer about
holders of record March 17 at rate of
Proceeds—For
later.
named
share
company
Union Bank & Trust Co. of Los
an
stock,
stock¬
class A share for each two common
Price—To
shares held.
common
reported
was
Underwriter—Cruttenden
Radioactive Products, Inc., Detroit, Mich.
March 1 stockholders were to vote on authorizing
■;>
of
it
11
Price—$6.75
<.
Springfield City Water Co.
April 7
a
mon)
Underwriters
construction.
(4/9)
that
announced
was
000 of debt and for
Southern Natural Gas Co.
★ Pressed Steel Car Co., Inc.
March 4 it
on
new
it
about the middle of
in May or
competitive bidding. Probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Coffin & Burr, Inc. (jointly); White, Weld
& Co.; Kidder, Peabody- & Co. and Blyth & Co., Inc.
(jointly). (2) For preferred stock — The First Boston
Corp.; Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co., Inc. (3) For common
stock—Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co. and Lehman Brothers
(jointly).
000,000
to spend
or
for
determined
24
that company plans
Jan.
and
mon
Feb. 9 stockholders approved an increase
ized
announced company intends,
was
issue $4,000,000 of first mortgage bonds
and $2,500,000 of preferred stockTwand-^foward the end
of the year to issue sufficient cpm^j^shares to raise
approximately $4,000,000. Proceeds — To" retire bank
issue
filed amended application with FPC in
its plan to build a natural gas trans¬
system in the Pacific Northwest to transport
gas from Canada to markets in Idaho, Washington and
Oregon, with a portion to be returned to Canada for use
in British Columbia. The estimated overall cost of the
Jan.
it
1952, to
June,
Feb.
(Minn.)
pany
tive
Hampshire
it Public Service Co. of New
6
sidiary of Tennessee Gas Transmission Co., plans to file
a registration statement by March 20
covering the sale
of 1,400,000 shares of common stock, of which it is ex¬
pected that 1,250,000 shares will be publicly offered
Kuhn, Loeb & Co. and Harriman Ripley & Co.,
(jointly).
Public Service Electric & Gas Co.
States
March
—
& Co.;
Inc.
York.
Northern
^-Tennessee Production Co.
bank loans and for construction program. Under¬
May be determined by competitive bidding.
Probable bidders: The First Boston Corp.; Glore, Forgan
repay
45
Thursday, March 13, 1952
...
with Smith,
Baird & Co.,
dealer-man¬
bonds, to be
determined by competitive bidding in April. Probable
bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co.
and Kidder, Peabody & Co.
(jointly); Kuhn, Loeb &
Co.; Salomon Bros. & Hutzler; Equitable Securities
Corp.; Smith, Barney & Co. and Robert W. Baird & Co.,
Inc. (jointly); Union Securities
Corp.; First Boston Corp.}
Glore^Fprgan & Co.
*
Number 5098
Volume 175
.'The Commercial and Financial Chronicle
.
.
tunity for adding
a
to
name
new
their
(1119)
generating units, each of 135,000
portfolios, is slated for of¬
fering early next month. Proceeds
kw. capacity, at the
will
finance a $2,400,000 increase in
the company's equity in Pennsyl¬
vania Power Co., a
subsidiary. The
be
for
added
to
expansion
funds
general
and
diversification
expenses.
Meanwhile, Columbia Gas Sys¬
registered for $60,000,000 of new debentures and an
tems Inc., has
additional $20,000,000 to be raised
through bank loans.
plant.
Part of
latter
construction in
complete
of 85,000
Castle
Underwriters
which
several large new
preceding period.
Prospective
with
a
rather wide field to choose from,
appeared
crawl back
disposed to
into their shells and adopt a
ing attitude. At
no
Financing by Mississippi Valley
Gas
buyers,
wait¬
rate there was
any
concerted rush to
soak
the
up
of
Co., for the primary
acquiring
natural
Mississippi Power & Light
was undertaken on March 12
with the initial public offering of
400,000
petitive bidding.
Corp.
It
that
be
may
the
over
'
-
apprehension
possibility
of
money
a
squeeze
toward the end of the
week when the March 15 tax date
rolls
their
in
ence
for
reason
thinking.
But ; the
issues
new
570
now
which
stock
is
offering
the
s
i 11
also
agreed
to
the
for
arrange
it is pointed
out
private deals, or
direct placements, still is an ele¬
to
ment
that
of
run
reckoned
be
such
with
and
naturally,
operations
the biggest of the institu¬
tional
investors,
the
insurance
companies, an outlet which fre¬
quently carries more appeal for
give
of
Mississippi Power & Light
to finance plant additions
ness
C6.,
construction during the early
of the current year and
and
months
for
initial
working
quirements.
of
The
purchasing,
trial,
1951
company
large most of the new
issues.appearing this week were a
bit on the sluggish
side. There
were exceptions, as usually is the
and
such
case,
Illinois Power Co.'s
as
capital
new
sissippi,
preferred.
Both - these
celerity. /. '■; /
*
P
Power's
o
t
o m a c :i
815,000,000
of
1951
totaled
operating
and
the
of
ing
the
net
and
several
issues
the/ efforts
will
which
of
i
sizable
require
syndicates. Next Tuesday, for
ex-,
ample,'Pacific Uas & Electric Co.,*
will
bids for its offering of
$50,000,000 of first and refunding,
33-year bonds.
| ;-v'
"
open
the
On
same
derwriting
day
bankers
400,000
and
of¬
convertible
will put that
to
common
have
who
preferred
shares
of
holders
of
that
date,
:
out
following week will bring
two other large public utility
Consolidated
issues.
Edison
of
Ohio
was
*
^
A
New
Name
Looms
Pittsburgh Plate Glasg Co. went
into registration with SEC this
week for
its first public
debt of¬
fering which will take the form
of $40,000,000 of 15-year sinking
fund
debentures.
This, issue, ..which
large
investors
with
an
oppor¬
the Common
of
V.
record
March
STEVENS,
21,
Y.
York 5, N.
March
12,
Secretary.
1952.
398
Board of Directors of this Company, at
Meeting held this day, declared an interim
for
the
first
quarter
of
1952,
of
venty-five Cents ($.75) a share on the out¬
standing capital stock of this Company, payable
on
March
29, 1952, to stockholders of record
at tne close of business on March 20, 1952.
a
S
C.
W.
LANGLEY, Treasurer.
-
$1.75
per
share,
of the
on account
quarterly dividend period
■<
ending April 30, 1952, has been |
declared payable April 15, 1952
on
the
outstanding preferred stock
of the
Company to holders of pre¬
The
Board
day
of
of
declared
$1.3125
Directors
has
of business
this
quarterly
on
the
on
Pre¬
ferred
Stock, 5.25%, Series A,
Company, payable April
the
1952
the
to
stockholders
close
of
been
March 24,
of
business
record
March
DIVIDEND No. 39
The Board of Directors has declared
1,
dividend of 30 cents per
at
21,
able
5,
a
MILES
on
ers
the
April 2, 1952 to stockholders
of record
at
the close of
business
payable April
of
of
par
hold¬
stock of record at
common
close
15,
common
Company, of the
business
March
on
24, 1952.
on
ROBERT
March
JEROME A. EATON, Treasurer
MILLER
S.
Secretary
12,
1952
1952
March 11
1952.
share has
per
the outstanding
March 24, 1952.
1952
50tf
value of $1.00 per share, to
share on the
Common Stock of the Company, pay¬
Treasurer
March
on
stock of the
of
1952.
VINCENT T.
declared
1952,
dividend
share
a
per
The Electric Storage Battery
RADIO CORPORATION
company
Dividend
have declared from
Co.
at $102,375
The
dividend of fifty
cents
($.50)
per
At the
share
on
March 14,1952,' \
ary
-
Secretary and Treasurer
,
per
share
today,
a
dividend of 87 Vz
on
$3.50
the
First Preferred
17, 1952.
ERNEST B.
^ a
9
j
The dividend
New York,
N. Y., March 7, 1952
two
106,000
kw. generating units
electric station
the
at
the
on
rate
to
1>
on
the
share and is
▼ IMC
at
the Com¬
Common
of 60 4 per
at
the close of
the 4 % Preferred
rate
of $1.00 per
payable April 1,1952
stockholders of record at the
close of business March 19,1952.
MILTON L. SELBY,
GENERAL
share,
payable April 1, 1952 to
Stock is
.
of
is
the
The dividend
and
construction program during 1952.
Chief items in the program are
on
business March 19, 1952.
GENERAL
March 11/
on
and
at
stockholders of record
I
I
dividends
pany's $5.00 par value Common
Stock and 4% Preferred Stock.
Stock is
GORIN,
Vice President and Treasurer
'V
Safeway Stores, Incor¬
porated, on March 4,
1952,declared quarterly
Cumulative
Stock, payable April 1,
of business March
is
of
1, 1952 to March 31, 1952, was
1952, to holders of record at the close
Philadelphia, March 3, 1952.
The Board of Directors
share, for the period Janu¬
per
declared
*H. C. ALLAN,
;;;
cents
:
Stock Dividends
meeting of the Board of Direc¬
held
tors
the Common Stock, payable March
317 1952, to stockholders of record at"'
the close of business
stock
-Preferred and Common
First Preferred Stock
the
an
Edison
INCORPORATED
on
Quarterly Dividend
The Directors
Stores
Safeway
OF AMERICA
206 th Consecutive
mainly towards the cash
requirements
of
its
$40,600,000
CORPORATION
Secret^.
March 4, 1952.
TIME
Mining and Manufacturing
Niles, Ohio and two additional
steam
new
Phosphate
•
Potash
Fertilizer •
•
Chemical*
Dividends
DIVIDEND NOTICES
—
;
■
—JU
AMERICAN
and
Brooklyn
Board of
ufacturing
■
MANUFACTURING
Noble
The
West
22,
Company
has
M
U
of
Record
13,
1952.
declared
at
the
Transfer
PREFERRED
the
Man¬
regular
close
books
of
business
will
remain
open.
COLUMBUS
of
MOISE, Treasurer
Stock, payable April 1, 1952 to
shareholders of record March 14,
such
shares
of
date
a
cn
.
-
as
Locks
on
Builders'Hardware
follows:
stock
were
4% Cumulative Preferred Stock
40th Consecutive Regular
Quarterly Dividend of One Dollar
($1.00) per share.
,
dividend
of 50 cents
the
on
STOCK
Common
per
Stock,
John H. Schmidt
Secretary-Treasurer
Both dividends
TALE & TOWNE
254th Dividend
since 1899
1952, to
On March 7,1952,
dividend No. 254
payable March 28,
stockholders of record at the
are
of
fifty cents (50*) per
share was declared by
close of business March 14, 1952.
Robert P. Resch
issue. which is $.5347 per share,
quarterly dividend will not be pay¬
31, 1952, as previously announced.
D. C. McGREW, Secretary
\
Board
out
of past earnings,
payable
Vice President and Treasurer
on
at the close
WESTCL0X
SETH
.
BIG BEN
THOMAS
STR0MBERG
RECORDERS
HAYD0N
MOTORS
Directors
April 1,1952
to stockholders
March 5, 1952.
issued
14,
of
the
Checks will he mailed.
of record
of business
March 17, 1952.
INTERNATIONAL MINERALS
of
full
'
declared by the
Regular Quarterly Dividend of
Forty Cents (40(?) per share.
holders of record March 14,1952.
1952 the dividend payable on
March
31.
1952
to'ho'ders of such shares of
stock, in accordance with the provisions thereof,
will be
that amount which has accrued since
the
were
Board of Directors
$5.00 Par Value Common Stock
1952.
Colorado Fuel & Iron
Corpora¬
tion previously announced that a regular quar¬
terly
dividend
in
the
amount
of
sixty-two
and one-half cents per share would be payable
on
March
31,
1952
to holders of record
on
March
8.
1952, of the corporation's shares cf
or/( cumulative preferred stock, series A.
as
the 4 l/i
payable April ly 1952 to share¬
Corporation
January
on
cent Cumulative Preferred
share
*
Inasmuch
Dividends
Feb. 28, 1952,
STOCK
$1.06 H per share,
per
A
The Colorado Fuel & Iron
on
has
Regular quarterly dividend of,
COMMON
Correction—The
Directors
following dividends:
York
the American
ommon
March
Board
declared the
Streets
New
Directors of
The
•>
—
COMPANY
guarterly Stock, payable 25c per shareto on the
dividend of April 1, 1952
Stock¬
and
will provide
New
DIVIDEND NO.
awarded to the group at com¬
able
i;,
».
both
basis.
Proceeds will be applied by the
bids on March 25 along,
with $30,000,000 of new 30-year
first and refunding bonds of the
•
J.
Broadway,
dividend of
a
on
Corporation.
Both
payable April 1, 1952, to
1952.
Mining Company
120
also
share
de¬
divi¬
the 1%
on
this
A dividend of
v-
Co.'s
Gas Co.-
dividends
oper¬
$13,887,228,
company
for
Southern California
Stock,
per
of
has
quarterly
share
per
stockholders
New York & Honduras Rosario
For
Accumulated Surplus of the Company a
$50,000,000 of 30-year first and
refunding mortgage bonds is due
up
Mas-
Checks will be mailed.
holders
The
cents
Directors
regular
ferred stock of record at the close
Ellison Preferred Stock
stock
pre-emptive rights.
15
Stock
Springfield,
reported
the
of $1.75
Preferred
Elyria,
of
Board
clared
dend
Preferred Stock, 5.25%, Series A
com¬
Bankers Offer Ohio
forward, first
issue
1952.
Dividend
on
fering of 224,112 shares of cumula¬
tive,
York, N. Y., March 5,
Quarterly
stock.
mon
un¬
United; Airlines'
CORPORATION
Secretary.
.
financing will
$7,700,000 of long-term
debt
:t
banking
OTTINGER,
Notice of
Capitaliza¬
consist of
petitive sale
Ahead
of
current
current
terest.
calendar embraces
WAGNER BAKING
1952,
close
A dividend of 13A%, amounting to
Mississippi Valley follow¬
priced
Looking
of
from gas oper¬
$634,045.
were
tion
Co.'s $12,500,000 tof first
mortgage bonds/ priced at 100.45
appeared to be arousingisome in¬
The forward
11,
the
at
The
New
of
The First Boston Corp., Lehman
314s," Brothers and
Bear, Stearns & Co.
•.
April
record
1952.
LONG ISLAND LIGHTING COMPANY
investment group
were
slow, along with
Central which is
offering publicly today
Power & Light's$10,000,000 of 3^s.
(March 13) a new issue of 150,000
Meanwhile
Pacific
Power
& 4.56% preferred shares, $100 par,
•*
payable
of
1,
,
and
city
$5,632,826
revenues
pr|ced at 100.837%, to yield 3.21%; jointly head
»
declared
Operating revenues derived by
Mississippi Power, & Light Co.
from gas operations in tne year
'
Light
been
stockholders
business April
$96,075,290 and
consolidated
Electric
new
to
The
income
,
However.
of
a
the out¬
on
Jackson.
issues
■;
has
DIVIDEND NOTICES
re¬
to indus¬
domestic
gas
including
35c per share
of
in¬
Youngstown.
revenues
a
company
transmitting
commercial
dividend
standing common stock of this corporation
dividend
on
,
$20,000,000 of bonds and' Metro¬
politan Edfson Co.'s $7,800,000 of
new
bonds and 40,000 shares of
moved with
the
Ohio,
Marion,
Sandusky,
and
ating
For the quarter ended January 31, 1952,
cash
in the western part of Mis¬
users
ations
them.
By
Mansfield,
n,
private placement of $7,700,000 of
the new company's first mortgage
bonds.:
distributing natural
the
o
in
Alliance,
Warren
net
Plywood
common
at $11.25 per share and has
month.
are
Furthermore,
Akron,
Lorain,
intends to continue in the business
that
communities
cluding
DIVIDEND NOTICES
Corporation
SIMON
Co.
vmarketwise
and
realize that a heavy calendar is
ahead through the balance of the
emerging
kw. capacity at its New
Proceeds from the sale of stock
a
full, for one
thing., Moreover,
buyers of the type who would be
in
common
and bonds will be used to acquire
the existing gas system and busi¬
as
Pricing of current new issues
probably was regarded as a little
interested
stock,
value, of Mississippi Valley
'
Equitable
Securities
heads' a' banking
group
of
bit
generally
deep-seated.
more
par
Gas
shares
hesitation
current
the
regarded
was
some," influ¬
carried
around
the
Co.,
$5
'
operating
and
third generating unit
a
NOTICES
United States
plant.
purpose
business and proper¬
gas
ties of
several offerings brought to mar¬
ket through the medium of-com¬
.
to
Offers Gas Co. Stock
i
the
emissions of the
greeted
1952, chiefly
Ohio Edison supplies electricity
Equitable Securities
a
week
response
potential
rather "testy" mood
after
the
favorable
investors in
this«
found
will
proceeds
expects to spend $8,025,000
on new
to
DIVIDEND
R. E. Burger
the
47
& CHEMICAL CORPORATION
March
GanaralOfficac 20 North Wackar Driv*,Chica««6
F.
§§ipPF
v
DUNNING
txaevtira Vica-Pratidant and Sacratary
Tift YALE A TOWNE MFG. CO.
mm$
The Commercial and Financial Chronicle
48
..
(1120)
Thursday, March 13, 1952
BUSINESS BUZZ
Washington...
A
Behind-the-Scene Interpretations
from the Nation's
WASHINGTON, D. C. —If you
defense business
with the government, one agency
doing
ace
fasten
to
any
haven't
it
about
heard
will—sooner
In
is the Re¬
for if you
Board,
yet
you
nutshell, the Renegotiation
a
Board exists for one sole purpose.
Should
defense contractor come
a
out of this show with a handsome
re-pricing
profit, despite constant
by
the
procurement
agencies
themselves, cost absorption under
OPS,
absorption
under
then there is one
wage
or
union pressure,
Federal
final
that
agency
can
"fair
what
is
profit" to
"excessive
.
an
profit." If any manufacturer
doesn't like it, he can just go to
court.
Then maybe by the time
grown up, the
adjudicated and he
out—after he has also
children
Ms
are
issue will be
find
can
of
matter
the
bod
deter¬
taxes
has
he
much
mined—how
got
left.
In
word, the little-appreciated
a
existence and opera¬
trade of the
tion
Board
Renegotiation
the
of
investment
the
to
earnings and
Is that the published
of any company
substantial defense busi¬
a
does
about
ness
in
final.
extensive
as
procuring
the
not
is
this
course
Measures
it does in
as
already
contracts
materials
contracts
other
All
profits
to the Board's final say on
N.
This includes fixed
before taxes.
price contracts
well as nego¬
as
Air Force
periodically. The cost in¬
can
constantly
swarm
the books of even fixed price
price"
"Congratulations,
spectors
ment
force the contractor
can
the
than
less
agreed to
The
too well.
govern¬
pay.
fol¬
Board
Renegotiation
profits
as
so
Board
do the same.
can
*
*
The standard of
Sam's
lettuce.
the
One of the advantages asserted
Renegotiation Board is
tliat when the Board has cleaned
for
the
*
the business baby and pinned
a new diaper of its OK, then
that business will forever be free
the
that it has profi¬
the government.
charge
teered
on
^This beautiful theory is little
^understood
appreciated out¬
side Renegotiation Board circles.
Few will naively hope that be¬
exists
there
cause
an
or
such
thing
a
Renegotiation Board to cer¬
a
their income and profits and costs.
reviewed by the Board's
are
While
over.
responsibilities
the
If
strued
and all occasions.
Board
of
were
the
con¬
Phil
to
Murray,
Walter Reuther, and the taxpaysay
ing public, "You
to
about
worry
these
profits,
we
get
even
because
them back,
Jrnve
tax
that
to
levy
the
them,
on
so
Here's
a
never
says
cooky
If the Board feels
an
profits
worry."
says
Harry
remotely
Renegotiation
creature
act
Renegotiation
operate not only on
the
of
Congress
last
Board
any
year.
can
contract
Army, Navy, and Air
Force, but also upon any defense
contract
forc¬
allowance,
a
may
appeal this to the tax court
In
sense
a
the
the
Board
is
industry
an
The
agencies
for re¬
profit
(so-called)
year.
per
in
Deal
Concerning
Gold
Foreign
and
Ex
change in Belgium—First Supple
ment
Bank for Internationa
Department
of
defense
should lose his shirt
contract,
"will
the
Board,
this into
take
on
is
it
2,770.8; Department of La¬
901.2;
Offices
be¬
H.
E.
#
Senator
for
Boeckh
&
Assocates
much
of
real
rials
Boeckh
expenditures
by
agency
the
took
the
of
for the
agency,
three
established
as
a
Ferguson
in the International
Conference.
This
base
Ferguson
Department
100
subtract
of
says
has
scarce
posed
index
branch
any
of
of
terials
expenditures of
the government
nance
other
for the
Congress. Its proposed
expenditures for fiscal '53 will
amount to
amount
upon
Congress
the
are
not
countries,
programs
arm
ace
itself during the years 1926-
these
other
hand, the Office
President
showed
the
largest increase in spending, with
expenditures
of
207,-
Inc., 25 Park Place, New York 7
Y.—fabrikoid—$10.00.
N.
Tax
Systems—13th edition, 195
—Commerce Clearing House,
Inc.
Michigan Avenue, Chi
1, 111—hard fabrikoid bind
cago
ing—$17.50.
Theory
vard
of Price
Control, A
Galbraith
Kenneth
John
—
Har
University Press, Cambridge
Mass.—Cloth—$2.00.
For
WE SUGGEST
RIVERSIDE CEMENT CO.
CLASS B
merely
for
war
of countries
against the
(common) STOCK
ma¬
mainte¬
in
leading
producer
fast-growing
a
review of the Cement Indus¬
on
request.
Available around
11/^
LERNER & CO.
re¬
and may or may not coincide with
the "Chronicle's" own views.)
cement
Southern
Analysis of this Company and
try available
of Russia.
flect the "behind the scene" inter¬
pretation from the nation's Capital
of
California.
men¬
(This column is intended to
the
the
Canada—newly revised 1952 Edi
D. Seibert & Co.
A
for
sustaining the
actively to
29.
to
especially
of the civilian economies of
production
expended
diversion
that
fact
allocated
the purpose of
413.8% of the average
the
for
economy
decries
the pro¬
Nort
of
tion—Herbert
that the State
authority to
U.
in
Dealers
Directory of Stock an
Bond Houses in United States an
no
other countries, and he
S.
Security
America:
Large Appreciation Potential
materials from the
Truman for 1953.
boost
or¬
tries of the free world.
and
of
computing the rising costs
smallest
Mate¬
is the
these agencies as proposed by Mr.
The
(R.,
average
1926-29,
years
this
actual
the
Homer
whatever,, has been allotting total
supplies of scarce raw materials
among virtually all of the coun¬
government,
postage.)
214 North
*
*
ganization which unofficially, and
without a statute or legal power
estate
values, has done
a
job on Mr, Truman's proposed
Budget for the fiscal year 1953.
of
deficit,
is
raised
city,
consulting
valuation
engineers and source of indices
was
1,037.2;
postal
trying,
but
without
success, to get some interest
Mich.)
*
this
for
Veter¬
917.4.
another contract.
on
*
of
the
recapturing "excessive prof¬
its"
on
(less
Administration,
Office
Post
*
fore
of
4,094.2;
Treasury,
Administration), 2,181.6; Vet¬
erans
one
account"
Department
2,555.6;
Independent
said,
Switzerland
paper—Sw. francs 15 (plus post
age). (Price of the complete work
original
compilation
with firs
supplement is Sw. francs 25 plu
Agricul¬
ans
contract.
Settlements, Basle,
Defense,
Interior,
by the Renegotiation
one
State,
of
of
ture, 1,045.4; Department of Com¬
or
to that contractor who has
than
Department
Department
7,371.5;
relief will
some
Justice
follows:
2,310.3;
no
merce,
shirt,
other main
for
as
was
821.3;
ary,
has
index
department, including the Judici¬
on.
government
during
expended
1926-29.
1953
bor,
proposed
if he does not agree.
the years
com¬
and lost his
On
The manufacturer or contractor
than
President
the
be the
to
of the contractor who bid too low
work.
Investment
Securities
10 Post Office Square, Boston
9, Mass.
Teletype
Telephone
HUbbard 2-1990
BS 69
not
Trading Markets in
It looks both at the level of
its
and
what
it
might
prof¬
consider
to be excessive costs leading to or
being the
cause
no
*
the
The
for
the
reduction in the con¬
receipts on his defense
There is
in
then
subtract this cost from
contractor's
tractor's
of
a
legitimate,
said
individual
war a "contract renegotiation" agency
going to but a "profits renegotiation" board.
before we Its interest is in excessive profits.
excess
%
is
Bu¬
105.1% of the amount the Office of
rea¬
Agent
Flemin
—
high
don't
that
$12.00
two
Regulations
are
anything
Actually
-created
can
ing thereby
like that.
Board
not
is
the
don't need
guys
line
Revenue, they
will not be questioned/
On the other hand, when the
Board feels it has spotted an "out
of line" cost, it is entitled to look
at the company's books and satisfy
itself that the cost is legitimate
literally, then Harry Tru¬
could
man
of
Internal
of
reau
Board
on any
in
the
are
costs
and allowable.
Renegotiation
4
costs
allowable
with
gogues
or
kept Administration
columnists from charging "profi¬
"
regional staffs look
In general, where
contractor's
a
the
comparable
machinery
negotiating the contract
Mr.
The Board's
these all
of
II also failed
staff.
tainly recapture "excess profits,"
that this will cause either dema¬
teering"
of
year,
"fair and
standard, such as OPS attempted
futilely to work, and OPA in War
Board
fiscal
corporation's
These
up
on
of:
defense
profit is
rather
pany
If he
All
a
service
—
sonable"
be afforded
one
as
have
MacWeasel—you now
little exemptions!"
ings
Even if the
lows after re-pricing.
it.
sees
job
Mr.
beautiful
procurement standard
the
cases,
for
sell
to
doing
is
contractor
agencies
cost inspectors,
of the
such
In
Bi-monthly
Publishing Co., 548 South Sprin
Street, Los Angeles 13, Calif.
contractors, determining if, in the
the
Y.—cloth—$2.00.
—
o
themselves have the right to "re¬
over
Y.
N.
Par Values and Transfer
tiated contracts.
The Army, Navy, and
17,
Cobleigh—David McKay Co., Inc.
225 Park Avenue, New York 17
subject
are
York,
Expanding Your Income—Ira U
many.
The Board (including profits from contracts
primarily of let on the basis of competitive
preventing excessive profits on bidding) earned or accruing from
defense contracts before they oc¬ Jan.
1, 1951, are subject to the
cur.
The profits policeman on the
jurisdiction of the Renegotiation
beat, the Renegotiation Board is Board.
to
discourage
the fellow from
Defense
contractors
are
re¬
heaving the brick through the quired to submit statements to
window
and
grabbing
Uncle this Board annually, at the end of
itself
its
Internationa
and
Full
for
Street, New
paper—50$.
hedged and double-hedged), this
exemption
doesn't
excite very
more
Board
Analysis of the U. N. Repoi
National
on
contractors' profits
sees
Employment
Economics of Full
—An
prise Association, Inc., 4 East 41s
that
Of
quantity orders).
buying
defense
job
of the Renegotiation Board as
the
of
snowballs for the Eskimos (except
to be. able to buy
more, fail to spot an "excessive
profit,"
then the Renegotiation
will only become final
Communism—
on
Employment
Wilhelm Ropke—American Enter
when this
new watchdog of "excessive prof¬
its"
has
given
the
company's
books a final look over and OK.
sense
no
of the
Washington 6, D. C.
(lower
prices on
—paper—50<J
busi¬
a
We
Do
Report
Commerce
of
United States,
products
raw
services, in their zeal to cut down
in
are
Chamber
government
Since the
way.
any
Where
Today?—A
Commit tee
exempt by statute from
the Board's purview.
The Board
cannot review or recapture profits
on
the
sale
of
raw
products
which have not been processed in
They
ness
Communism:
Stand
profits
profits of today
doing
set
was
last
judgment
lifgnificance
It
Michigan Avenue, Chi¬
1, 111.—paper—$2.00.
cago
October and has hardly
got going.
There is one type of contractor's
be allowed a
reasonable
and
determine
that
inhibitions
statutory
214 North
would seem
to observers to deserve.
for
tire contractor must
much
received
has
board
The
profits."
>■*,,
It is entirely within the discre> tion of this Board, subject only to
broad
Antitrust Law Symposium: 1952
—Commerce Clearing House, Ine.j
less attention than it
for
cessive
and
cies.
the books
remaining "ex¬
along and check
come
and scoop up any
iA/
procurement agen¬
14 other
some
up
later.
or
JL
m
Services Administration
eral
on
your eye
negotiation
JLjL
Capital
by
may
case.
ficient
It
profit."
may
The
this
determine
"reward"
"honest producer
an
case
ef¬
a
i
higher profit than
an
in¬
efficient producer, or one that the
Board in its wisdom suspects of
of the Gen¬ having tried to pull
a
Allied Electric Products
Kingwood Oil
SECURITIES
■
South Shore Oil 6• Dev.
CARL MARKS & PP. INC,
Standard Cable
FOREIGN SECURITIES SPECIALISTS
who has
played fair with the government"
with
FOREIGN
statutory definition
"excessive
an
Board
of undue profits.
FIRM TRADING MARKETS
fast
one.
50 BROAD STREET...NEW YORK 4, N. Y.
TEL. HANOVER 2-0050...TELETYPE: NY 1-971
ill, Thompsons Co., Inc.
Trading Department
70 WALL
•
STREET, N. Y. S
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