Full text of Commercial and Financial Chronicle : March 19, 1953, Vol. 177, No. 5204

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ESTABLISHED 1839

UNIVERSITY
OF MICHIGAN

Reg. U. 8. Pat. OtflM

Number 5204

Volume 177

New York 7, N.

■Price- 40 Cents

Y.( Thursday, March 19, 1953

Copy

EDITORIAL

Business Outlook (or

We See It

Next Several Years

Slowly the mills in; Washington appear to be
grinding out some sott of i conclusion about the
Council of Economic Advisers and closely related
matters. The stage obviously has not
yet been
reachedwhieh<wouldenabletheordinary,citizen
to determine with anything resemble
precision

tion

what tfunetioi* it

related to all this is;the

full ^employment

can

best

aim

in the economy,

Prof. Slichter discusses- (1) likelihood
(2) the future trend ef
new
capital outlays; (3) the supplanting of. a drop in
investment outlays by other spending; and (4) the inpact of a substantial increase of defense spending on the >
economy. Contends if cat in defense spending is offset
by reduced taxes, and reduction in private investment re-.placed by higher state and local expenditures/ along with;
higher consumer spending, a high level of production and
employment can be maintained in next several years. >

of reduced defense spending;

' Closely

question of the so-called

philosophy

embodied in that

,•

inlluentiai members of the Presi¬
dent's i party who are on record to the effect that
the most important* if not the most urgent, task

concern

of this

look

months.

Administration is or will be to prevent
major depression which might well discredit
the Republican party in the eyes of the rank and
file for a long while to come (as was the case with
the so-called Hoover depression in and following
1929) or perhaps even permanently and irretriev¬
ably. Mr. Eisenhower during his successful cam¬
paignlast fall seemed to sense a fear of some such
eventuality among the masses, and again and
again assured the nation that he would employ
all the

resources

prevent such

^Tme'ded-

iii these remarks is with the business out*

new

our

page

address

Continued

Dr.

Slichter

NEW STOCK MARKET
new

DEALERS

page

officer

which

officer

option is granted

employee is the date which

employee

Under this concept

given

was

option to

buy stock at the market price obtaining on the

before the Central States Group,
Chicago, 111., March 12, 1953.

COLUMN—Don't, miss "THE MARKET

should determine its value.

fo give definitive answers

Investment Bankers Association,

......

prolonged study, in its revised bulletin No. 37,
held that the date

bad effects?

*An

Continued

The proposed rule goes entirely counter to the
accounting concept advanced by the American
Institute of Accountants, which after careful and

If defense spending must be
during the next several
Sumner H. Slichter
years, how much of an increase can
the country stand without experiencing inflation or other

will discuss release No.

(4)

Accountancy Institute View Flaunted

increased

less inevitable; About such matters and about

of causing turmoil among those it regu¬

In this article

covering a proposed
dealing with accounting practices with re¬
spect to stock options granted officers and em¬
ployees.
•.
.....:

of spending be in¬

I do not pretend to be

people

rule

creased to offset this drop?

perity. The President may regard the national
government more as an agency in reserve to go
Into action if and when an emergency arises and
a severe depression seems otherwise to be more

raft of

just kill time vying with each
which ones can come up with some

4803-X* of the Commission

(3) If investment spending drops,

pros¬

see

way

lates.

ernment is at all times the custodian of

its staff who

other to

(2) Can the present high rate of
investment spending be kept up for
two or three years longer?
other types

I",

indeed the Commission must have

the next several years—not over the next few

I have time for

(1) If the country is able within
or three years to reduce
defense spending by a few billion
dollars a year (say from $5 billion
to $10 billion), can we bring about
an offsetting rise in private spend¬
ing or some other kind of spending?

can

Continued

page

AND YOU," our

stock market column, which appears on page 31.

State and

WESTERN
HOIL & MINING

U. S. Government,
State and

Municipal

Securities

STATE

Pacific Coast &

Hawaiian Securities

SECURITIES

BONDS

telephone:

MUNICIPAL

and

HAnover 2-3700

Municipal
■iS

Bonds
&

♦

•

Direct Private Wiree

Chemical
BANK & TRUST

COMPANY
bond department

30 BROAD

ST., N.Y

Bond Department

Dean Witter
14 V.a

Co.

THE NATIONAL CITY BANK

Street, New York, N. Y.

ESTABLISHED

and

Principal Commodity

OF NEW YORK

Security Exchanges

San Francisco

•

Angeles

•

Chicago

Honolulu

Bond

Net

Pacific

T. L. WATSON & CO.
ESTABLISHED

Members New

Bonds

Commodity

Circular

Request

1832

Yot&$&ek

American Stoi

Exchange

Eg change, Inc.

Active

Markets

Albercan

Charter

Members New York Stock Exchange

Teletype NY 1-1843

Members American Stock Exchange

30 Broad St

Commission

Tele. NY 1-733

PERTH AMBOY

OF THE

CITY

OF NEW YORK

other Western Cities

Ltd.

Northwestern

BONDS & STOCKS

Public Service Co.

Orders

Executed

All

Analysis

upon

request

Exchanges At Regular Rates
DEPARTMENT

GOODBODY

CO.

ESTABLISHED 1891

115 BROADWAY

BRIDGEPORT

Tel. DIgby 4-7800

BANK

NATIONAL

CANADIAN

Oils, Ltd.

MEMBERS NEW YORK STOCK EXCH.

❖

New York 4

Denver
Spokane

Steep Rock Iron Mines, Ltd.

CANADIAN
4-6500

Oils, Ltd.

Industrial Acceptance Corp.,

York 4, N. Y.

Telephone. WHftehall

Maintained:

Angeles
and 10

Canadian

Los

Dept. Teletype: NY 1-708

| Exchange

50 Broadway, New

Hardy & Co.

THE CHASE

1915

Principal Exchanges
BROADWAY • NEW YORK CITY

Members of All

Salt Lake City

Los

•

Boston

Missouri

J. A. H0GLE & CO
*

Members of

NEW YORK

again L In the constantreachiftg
out to enlarge its power hardly a week goes by
without the Commission: either issuing mim&K
graphed copies of the text of new complex rules
it has promulgated or of ones that it is considering
adopting and is requesting comments on. Verily

the next two

of the Federal Government to

SEC1

The SEC is at it

Of course, this may or may hot imply full
agreement with the notion that the Federal Gov¬

over

Extension of timr within^ which to present views to

only a few of the most-important
questions. I have selected for brief discussion the follow¬
ing ones:
,
r
;

catastrophe.

that stock options granted to officers
employee* of American business corporations are
intended- hot Only as compensation bat also to * give
optionees a proprietary incentive and to raise equity
capital." Conflict between accountancy profession ana
SEC relating to correct accounting procedure outlined.
and

After reviewing present fads and probable developments

organiza¬

serve.

SEC disregards (act

Lamont University Frofessbr, Harvard University

what the ultimate decision ofthe Administration
will be as to the usefulness Of such

And Employee Stock Options

By SUIMfNlER H. SLICHTER*

DaMcaox Securities
(orporatioti
40 Exchange Place, New York 3, N. Y.
Teletype NY 1-702-3

WHitehall 4-3161

York Stock Exchange
Principal Exchanges

Members New

and

other

111 Broadway,
WOrth 4-6000

NORTH LA SALLE ST.
CHICAGO

IRAHAUPT &CO.

Boston

N. Y« 6

Teletype NY 1-2703

Telephone:

Enterprise. 1820

The Commercial and Financial Chronicle

(1206)r

WE POSITION

TRADE

The

and

Security I Like Best

A continuous forum in which, each week,

...

in the investment and
Air Products

Members

Common

choice

The

Southern Union Gas

best-liked

down

attributes

provided

portfolio

have

should

from

yield

New York Hanseatic

divi-

average

Corporation

1920

than

better

growth, and
s

Teletype NY 1 -583

Specialists in

Food

ify

Since 1917,

^cnONNELLfcft).
Members

NEW

REctor

2-7815

Trading Markets

protected by net
<fcflQ7

on an

pared

$3.36

Gas Co.

nnm-

year

com-

Net

1951.

W3o

higher^t ago for the cents
^n
sam^
year
with 38
.

month

„

the till

sinking funds in

22 cents in the

versus

same

Handley Hardware Co.

Lynchburg, Va.
Tele. LY 62

of the United States, with the
the compass between
City and St. Louis, and

Kansas

leg

one

extending

Dallas,

LD 33

llllllllllHIIIIIIIIIIIIIIilllllllllllllllll

laid

top

tion

Texas,

the

provided
Frisco

southwest

illustia-

fast

nine-state

the

System

coveiage

miles

5,000

track:

Territory

covered,

both east and west, is
growth, the interchange of
freight haul is one of diversificaof

one

Air

Conditioning
Stock

tion, with
accounting

this

1906

lieve

16%

for

er7 H U
"§
3.

qualification

appears

out

REFRIGERATION

The

AIR

factor

COMPRESSORS

that

operations

with

One of the

most

respected

in the business with

record

names

enviable

of continuous
profitable

operations. Div idends paid every
year

since 1946.

Large, growing

backlog of orders. Common

stock

approximately $8.00.

enues

believe

this

stock

cial

valued and invite
you

for

mile,
1.020

rev-

which
cents

have

1941

1997,

finan-

near

equip-

convert to

mortgage 4s mathe income bonds
common

the current ratio

1.8

Arizona

Land,

acres

the

states

Arizona. The

St., New York 5
Tele: NY 1-3390

31 y2

which

New

common

the

when

ago

ygjjrs

still

and

married to for

elected

feel happily

bright future

Food

Machinery
and
Chemical
Corp. The company has a history
0f aggressive management dating
back to its inception in 1928, that
has taken it from its small begin-

handling

canning

freezing

packaging

industry,' and a
producer
of
agricultural

industrial

and

chemicals.

Addi-

tional companies have been taken

the

Food

Machinery family

by the exchange of stock,
time

time

has

power

the

that

increased

been

little

slow in catching up with the larger

capitalization.
though

has

The overall picture

been

one

growth

for the company and for the
ers,

own-

the stockholders, in both capi-

tal enhancement and return. Last
year
was

alone,

Co.

the

absorbed

Oakes

for

Mfg.

45,000

Co.

shares,

Packaging Machinery

for

15,000, and the Buffalo
Flectro-Chemical Co. for 302,000

shares, so that we now find, with
stock solits and dividends, and
stock financing, a total of 2,965,-

000

humble 184,000 in 1932.

Mexico
sold

and

high

Stock
pe¬

exploration

with

and

wires

our

branch

offices

South Carolina Electric &
Gas

Corp., Common
Foote

Mineral, Common

General

one

the

°f

Gebsten & Frenkel
Members

150
Tel.

Security Dealers Assn.

Broadway

New York 7

DIgby 9-1550

Tel. NY 1-1932

WHAT'S AHEAD?
Ten reports a year by
(co-author

Edward R. Dewey

Cycles—The Science of
Prediction)

resultant

Buffalo

latest

Aniline

Film, "A"

comoanies

both fields.

makes

Co., Common

Central & Southwest

reflects

modernize

Sent

who contribute

persons

$10
Foundation

for

coun¬

the

year

Electro-

the

parent
producers of

77th

Also,

Study

their

outstanding,

from

The fol-

.°^fc

fj1® Wyoming Soda Ash
Intermountain Chemi-

cal Corp. (20% owned by National
Distillers). Earnings of these projects should commence accruing in
7953. Continual progress is being
made in the development and research programs of all divisions,
The new acquisitions made in 1952
should add materially to the longterm growth and stability of earninSs~ In our high cost, high tax,
government price controlled econon?Y
recent years, as in common
most companies margin of.
Profit brought down from sales
fel1
a fair 6% in 1951 from an
excellent 10% in 1942. I believe
that with the economy under less
Federal restraints, and the possiL>ility of lower taxes in the vears
ahead. Food Machinery will refiect its rate of growth to profitablc advantage to the equity

holder.
The financial position
company is strong. The
sheet for September, 1952,
a cash increase to $46
_

of the
balance
showed
million

from $27 million the year before,
and greater than current liabiliUes< desoite the spending of.$40
million in 1951 and 1952 on new
plant and equinment.
Interest
charges and preferred dividends
requirements nrovide considerable
leverage for the common, now on
a $2 basis,
Capitalization:

Street, New York

Cycles

21,

"dividend," a chart of various
stock market cycles, projected to 1990.
This projection, made in 1944, has worked
amazingly well for eight years. You will
want

future.

see

Send

319.

what

$10

indicates

today.

back

Money

Ask
full

for

the

for Chart
if not de¬

lighted with first report.

Commonwealth
Oil

Company

Common Stock

Bought—Sold—Quoted

Prospectus

request

Gordon Graves & Co.
30 Broad

Street, New York 4

Telephone

Teletype

WHitehall 3-2840

NY 1-809

410 Pan American

Bank

Bldg.

Miami 32, Florida

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX

Fimded debt—$47 000.000.

lowing figures reflect the growth:

3.25

cum.

Temporary conditions in an in-

3.75

cum

pfd.—106.000 shares.

12-Year Performance of

Common

stock—2,965,000 shs.

35 Industrial Stocks

dustry,

the

general

economy,

conv.

holds

American

mineral

and

further if that

40, and

Exchange in 1951 during the
riod

719,in five tracts located in-

484

it"

dear

here

provided

NY 1-1557

Mobile, Ala.

machinery and chemi¬

record

would

and

sto^

The speculative "kicker" in the

picture is

water,

mav

the Simplex

comfortable

by its
50% ownership in New Mexico &

Member National Association
of Securities Dealers, Inc.
'

Phone B0 9-5242

lower

The first

Frisco

PASQUALE CO.

55 William

further

circumstances, with

ments.

send

our report.

improving

term maturities other than

ture

under¬

southwest-

1.303 cents in 1951.

Frisco

now

from

line

ratio

ton

per

place

increasing

climbed

roads

transportation

figure,

tend

average

district

ern

GAS COMPRESSORS

the

will

approach.

security

earning

future

"Liking

future

road

St., New York 4, N. Y.

Orleans, La. - Birmingham, Ala.

Direct

then, the his¬

company

Chemical Co.

vou

from

dieselized,

Chemical

assimilation

acquisition

rs thrconc^u^ionTawn

into

100%

Moes

analytical

reader

of last year, it is believed that the
now

Exchange

implies in street parlance, that it P^roxygen chemicals. During 1952
.g a stock diat win g0 up as soon
company completed its fourth
^
purchased.
For that I would Phosnhorous furnace and correneed a crystal ball, rather than sP°"dmg oroopssine facilities, as

major

fnr

coxing tue.
warJTur lor

With

labor saving and productive ma¬
chinery of the company.
Recent
Maurice

table

About 80% dieselized at the end

AIR CONDITIONING

New

a^ric^ltural
the absorp¬

growing and processing in¬
dustry, emphasize the need for the

D d C K,

the

divisions,

build

ning to the foremost supplier of
machinery to the fruit and vege-

to be covered.

Stock

HAnover 2-0700

tak-

food

® "

lnnkinf,

acquired,

try. and the aim of all countries to

must

tonnage,

York

American

25 Broad

better

increasing population in this

ing process of

[»}"

was

Since

way,

growth

....

and

growth

cal

continu¬

that

Westvaco

in both the

be¬

steadv

Co.

chemical field

tory

products

agricultural

products 1%, mine prod37%, forest products 6%, and
manufactured products 40%. Thus
the

Members

the

removed,

feels

1948, they entered the field in

security

best."

ucts

SINCE

viewpoint, that

beginning

today, "I

New

Members

gathering to the processing and
packaging.
In 1943 "'the Niagara
Chemical

major

that

animal

BRUNNER

recently

felt,

a secuand say,

A draftman's compass
map

Scott, Horner &
Mason, Inc.

earlier.

year

have

select

period

the

is extreme¬
is pxtrpmp-

ap-

xmnt.

currlent

after capital and

Dan River Mills

per

1 not

SS'Uah^<yi°f
50%

Commonwealth Natural

con¬

for

ly difficult, if

an-

this in turn

$2.50 basis, and

proximating $6.37 last

Natural Gas Co.

Moore

return of 8.06%

wnAvlmnfinrt

Alabama-T ennessee
*

com¬

secu¬

yield from the indicated regular
62
cent quarterly dividend pronual

Francisco

qualifications. Cur¬
around 31 per share, the

column

investor's

rity

ac-

Steiner, Rouse & Co.

see

primary emphasis
was
on
machinery for the food
industry, from the planting and

pot well nigh

rity I like best to fill the afore¬

vides

can

Until 1943 the

impossible, to

cost.

average

Louis-San

rently

YORK

in that important division.

Corp.

reluctant

that

reason

mentioned

American Stock Exchange

interrupt longthat

profit margin will be established

MOES

Chemical
a

this

over

purchase,

is my selection as the

mon

York Stock Exchange

Tel.

qual¬

can

■

Bought—Sold—Quoted

at the present, though sales for
the first nine months of 1952 increased about 48% over the 1951

tion

that

one

of time in order to

period

St.

BROADWAY,

it
it

immediate

for

from

Colby

suitable for accumulation

chieve

120

Gerald S.

should also be

been
to

simple

and

outlook,

have

tributor

international

Rights & Scrip

Machinery

in the

domestic

growth,

controls

average.

the

tainties

Co., N. Y. City. (Page 2)

momentarily

term

•'

•

Normally only 38%
is provided in the first half

Erdman & Co., New York City
Members New York Stock Exchange

"kicker." Con¬

sidering

can

year.

MAURICE

culative

p e

man

management

current uncer¬

New

last

earnings,

Exchange

Louisiana Securities

Colby, Analyst and General
Partner, duPont, Homsey 61 Co.,
Boston. (Page 2)
Food
Machinery
and
Chemical
Corp. — Maurice N. Moes, Erd-

period, there was an increase of
Frisco common is currently only 1% in net income. In per
available at only five times net share terms, the result was 2.45

Associate Member

120 Broadway, New York

this Frisco

say

can

Alabama &

Gerald

—

asset lacks possibilities?

the

pro¬

tected

industry, who

Francisco

against 3.15.
of net
Besides the greater amount of
of the year. Thus far in 1953 net stock outstanding, 1952 saw a genhas advanced 50%, certainly an
e^al price decline in chemicals,
auspicious beginning, and in re- higher costs,
government price
cent trading sessions the common
controls on machinery, and small
stock has performed better than
Pr°frt government contracts. With

securities.

receiving publicity. Tms com-

manages to pay its way,
earns a few pennies per annum,
but has thus far been untmpottant *n mineral recovery. With

well-balanced

United Utilities

BArclay 7-5660

the

technological skills" improving by
leaps and bounds in the mining

offering the greatest num-

one

ber

Taylor Oil & Gas

Stock

Boston
: '

security must be narrowed

River Brand Rice

American

and

York

Exchanges

Louis-San

particular security.

intended

not

are

was

Louis-San Francisco

St.

Corporation

Established

as an

COLBY

New

Stock

Corporation

Polaroid

for favoring

St.

be, nor
offer to sell the securities discussed.)

Analyst, General Partner
duPont, Ilomsey & Co., Boston, Mass.

Eastern Utilities Assoc.
&

be regarded,

GERALD

Copeland Refrigeration

Filtro

they

are

East Tennessee Natural Gas

Conv.

reasons

(The articles contained in this forum

Colorado Interstate Gas

of experts

group

Week's

Participants and
Selections

Their

advisory field from all sections of the country

participate and give their

American Maize Products

different

This

Forum

Thursday, March 19, 1953

...

pfd.—68.000 shs.

Earnings
Sales

1932

Net Prof.

Net Worth

$2,656,180

$24,795

$4,649,517

Amt. Com.

per

Div.

184,226

$0.40

1.75

FOLDER

1942

22.594.987

2.217.387

11,991.193

426,000

4.48

1951

146.060,006

85,018,951

2,266.600

4.01

1.75

!1952

166,520,762

9,745,779
7,246,682

2,965,000

2.45

1.50

September, 1952.

REQUEST

National Quotation Bureau
Incorporated

46 Front Street
*9 months

$0.25

New York 4, N. Y.

Volume 177

Number 5204

The Commercial and Financial Chronicle

...

(1207)

INDEX
Page

Business Outlook for the Next Several Years

': —Sumner
S

An Investment

•

least

should

be,

proposition.
identical

are

the

else's,

any

re-

interests

—Clarence

Jf,
'|B

for

F°r

with

aid

the

sistance,

investment

specifically
Under

these

planning

necessity,

suggestions

nature

set

indi-

than

No-one should take

rather

general and should be
cative

needs,

circumstances, broad

investment

have,

portfolio

their

suit

specific,

set formula

of suggestions and

group

rious

in
sum

which

into

went

the portfolio also pertain to the

individual's

circumstances.

own

Specifically, there
of

points

sider

which

must ?con-

one

portfoiio is set
how

much

vested?

Point

drawn

con-

before

the

First, of course,
money is to be inup.

is the economic

this
of

it to

reducing the

sources

partially,

person

not

all

are

other

completely,

dependent

derived

come

ment?'. Point
of

sources;

of capital available; is the

from

the

what

the investor and

in-;

invest-

view

reasonably conservative

quirements

sufficient to take

ing

short-

Last
of

but

the

not

are

must

his

amount

tal

that

when

addition,

the

maximum

will

tax

Climax

Federated

200

•

„

•

Securities

Dealer-Broker Investment

Einzig—"British Concern Over U.

and

to
a

Our

Reporter's

Report

Our Reporter on Governments.—.

■

•

I' :.-'V

page

BROAD

Railroad

Securities

Salesman's

Albany

Corner

3,400
3.250

180

The State of Trade and Industry

6,700
4,900

300
200

Tomorrow's Markets

*$2,24.9

200

"Tomorow's

and

You—By Wallace Streete

Markets,

Walter Whyte

Security

•

Private Wire to

Chicago

•
•

(Walter Whyte Says)_—

Washington and You
article

*See

Streete

The

"The

Canadian

Dollar"

See "The Market

Glens Falls
•

Worcester

CROW ELL, WEEDON & CO.

LOS ANGELES, CALIFORNIA

Park

Twice

Current

13.

page

and

DANA

COMPANY,

Publishers

25,

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Common Stock

Page 31.

COMMERCIAL

HERBERT

•

MANAGEMENT, Inc.

FINANCIAL CHRONICLE

TELETYPE N. Y. 1-5

Schenectady

Best

144

York Stock Exchange

Nashville

(successor to

Says")

250

ST., NEW YORK 4, N. Y.

Boston

•

Manchester, N. H.

Exchange PL, N. Y. 8

We offer

roughly $50,900 and bring

•

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Members

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MACKIE, Inc.

PREFERRED STOCKS

specialized in

•

*$50,900

cost

U. S. Airlines

Observations—A. Wilfred May

Light

News About Banks and Bankers

Published

have

Puget Sound Power

Funds

indicated return of $2,249 or 4.4%.

For many years we

Lear, Inc.
7

The

Sterling Steel

Great American Industries,

___

Indications of Current Business Activity.
Mutual

vDiscontinued.
in

S. Outlook"

From Washington Ahead of the News—Carlisle
Bargeron

125

would

Firth

.___

The Market

65*^
67

—

.____

securities

Recommendations

200

____

Westinghouse Electric

*These

400

Total

Chemical

Cinerama, Inc.

5,600
4,800
4,200
4,200
3,850

Goodrich

100

Brown Allen

Securities Now in Registration

Western Pacific RR

Angeles

Return

$10,000

Department Stores

100

Los

Francisco

Bookshelf

Coming Events in Investment Field_____

Indicated
Amount

Long Island Lighting
Phillips Petroleum

Wires
•

Cover

their

„

Continued

Molybdenum

San

(Editorial)

Man's

Canadian

long-

26%

con-

American Cyanamid

100

See

Business

have

with

charge

100

Direct

•

Teletype NY 1-3370

addi-

portfolio.

gains

come

Chalmers

Broadway, New York

BO 9-5133

___

Bank and Insurance Stocks

against the materially lighter in-

Equivalent

100

Security

Allis

Prospects

Philadelphia

ad-

ready

advantage

capital

term

needs

investment

Price

100

Foresees Reassessment of "Big Business"-:

his capi-

desires

Approximate

Refunding

1952

liv-

possibly

country and to build

Buy

Cash

J.F.Reilly&Co.

in the longer term growth of the

medium-term basis?

individual

request

Cover

S. E. Reveals Lower Profit Made in

Treasury

savings. His investments
to permit him to participate

capital,

least, the tax status

Options

in-

salary

care

certain

tional

frankly, speculative potentialities

Officer and Employee Stock

Helicopter

Incorporated

■

on a

Piasecki
Regime—Henry Ford, II

...

N. Y.

re-

whose

and

expenses

of the

man

sound

in-

the

Helicopters

Kaman Aircraft Corp.

Suspends Trading on American Stock Exchange in
Adolph Goebel Stock

sum

care

business

from

come

the

basis,

Hiller

the

could

one

smaller

account is to take

objectives—namely,
preservation
of capital, long-term growth on a

;

Regular Features

amounts

retire,

are

Gyrodyne Co. of America

Disastrous Deflation

(Editorial)

business

commitments

age

the

what

Study

ditional

coming

money

Boom

Computation of U. S. Foreign Aid—Max Winkler.

Proposed SEC Rule

larger
one
by
increasing the amounts. In short, the

is there additional
other

Real Estate

Doman Helicopters

moderately

provide

from

Market and

Rasminsky

in-

I have chosen the

case,

well apply

position of the investor—namely,
in

Dollar—Louis

Business Under the New Political

the

successful

$50,000, but

dividual

number

are a

carefully and clearcut

clusions

making

the

YORK

WHitehall 4-6551

9
10

California Municipal Financing—James L. Beebe

namely,

—

STREET, NEW

Malenkov—Roger Babson

present tax rates,

fortunate coincidence all the

some

before

comes

objectives

Cobleigh,

Large Scale Production of Air-Conditioned Autos in Offing

middle age or slightly
younger who will still be actively
engaging in business for some
years but who has now acquired
sufficient capital that he wishes
to put it to work for him. It is
both to build an estate and supply
additional income, highly merito-

accept them in toto unless through
factors

man

Obsolete Securities
Dept.
99 WALL

—P. J. Kent

adviser

reasonably

Lawrence R. Kahn

as-

plan

their

out

vestment

today !

Bonnett

Ahead?—Roy E. Wenzlick_;

M*ddle Age

frequently

May

Prospects—Harry D. Comer

Canadian

Stock

For the purpose of this analysis,
have chosen a case that most

competent

can

0r Sightly Younger

gen-

erally,

these

these details here.

*' #

should

The

would be little point in going into

■P5y/7/-j

in-

each

VJr '< -4

dividual

but

Market

Stalin and

the whole gamut, from an
alien owning American securities
to "unusual restrictions," there

of saying

Stock

also be

may

out.

New Haven for Investors—Ira U.
•

run

;

Bk7f'JT f^~fy

another.

that

be considered

See

;

in—

comes

others, parin the higher income
this may be a major
determining the choice

Obsoletes
3

Telephone:

this makes

difference—in

brackets,

for

cases,

THE MAGIC BOX

Should Taft-Hartley Act Outlaw "Polecat" Strikes?

;

certain special factors which have

\ :J

investor

one

and

same

some

of securities. There

^
.*

restrictions

way

nor

little

ticularly
factor

quirements,

problems

combi-

nation

the

tailor-made

No-on e's

sidered. In

King,

Can We Do Business With Malenkov?—A. Wilfred

\ V «, \

Company, Members N. Y. Stock Exchange

by Nine Analysis of Some Unlisted Stocks

—Harold

Manager, Investment Research Department,

is,

cash

A Three

planning

______

Investment

____Cover

Portfolio Planning: An Investment Program for the
Business Man—Lawrence R. Kahn__^

By LAWRENCE R. KAHN

E. F. Button &

and company

Slichter

Program for the Business Man

llCHHIMI

Articles and Nevjs

Tel. HAnover 2-6577

The Commercial and Financial Chronicle...

(1208)

machinery

A Three

by Nine Analysis

transportation
equipment,
shoe
and
leather,
plastics,
textiles,
stone, granite, marble and glass.
December

By HAROLD J. KING, Ph.D.

show

Using the triple yardstick of impressive dividend records,
sound growth prospects, and high liquidity, Dr. King analyzes
nine actively traded unlisted common stocks.
stocks among

the

are

total

31,

sales

Net

vf"

million,
million, and

Mr.

outstanding.

in the Kremlin will entail

amounted to $70 million.

Grinnell Corp.—Founded in 1850

selected

heuser

over-

ing

the-counter

t h e

t i c a 1"

three.

will

Who

when

doubt

Haroid

directors
_

sometimes

clined"to"obscure"their

heating materials, valves, cast and
malleable iron fittings, and spe-

cialties. Delaware incorporation in
1923. No funded debt, or preferred

—

fur-

metal

that

trust

that

the

there

Russians'

policy
the past quarter-century will

over

not

well

York, in 1900, at which in 1899, manufactures carbon and
production activities were alloy steels, slabs, forging and
concentrated in Jamestown, N. Y. seamless steel products. Earnings

the

in- This $27 million concern is op- for calendar '52 amounted to $4.51
achieve- erating sans funded debt and pre- on 202,800 common shares. No pre-

profits

in the calculation of

ences

be largely wiped away, by
analyzing dividends on a tri-anmay

nual basis.

this"basis,

indicated by

them,

the number of over- fit. Funded debt, $3V2
interested in Preferred stock, none.

reported by the National

Quotation Bureau.
Additional

details,

pertinent

concerning

each of the companies

shown

the

million—

Table,

noted

are

Carborundum

siiicon carbide and
num

0xide

and

below.

Co.—

The

prin-

sulphate

actually been
running
KremlinWilfred

sale

crude

the

and

alumi-

manufacture

wide

range

Lindbergh's

fabricated from these
manufactured abrasives. Its num-

by more than six
Consecutive
dividends

erous products
include bonded
and
coated
abrasives,
abrasive

date from the time the nation dis-

grains, high temperature refractories, non-metallic electric heat-

Anheuser-Busch—This
of St. Louis antedated

famous

"spirit" products

plane

decades.

carded

socio-economic

certain

experiment. Who has never heard

Michelob?
increased
steadily

Budweiser,

ments

from

3,000,000 barrels in '46, to 5,479,'51 (pressing on a capacity
of 5V2 million barrels). Impressive steps

to rectify this capacity

limitation

are

company.

being taken by the

new

$7 million brew-

in San Fernando Valley (Los
County) is to boost the
figure to 7 million barrels.
An
increase of 41,600 square feet in
ery

Angeles

warehouse

ing

Con?ec-

WWWWHUUWWWWWH%

Art

Metal

Buda

company

are

witnessing the
Only

old double talk.

dividends adjusted

few

tried

main¬

tained

scale

price

1950-52

$0.92

$1.07

$1.20

$1.33

$1.34

26 V»

1.00

2.25

2.33

2.41

3.00

34 3/4

(approx.)

0.55

0.88

1.12

0.78

0.47

1.11

1.75

1.27

3.33

2.17

2.92

3.67

3.72

Corp

1.08

1.93

2.78

2.35

341/2

Co.

0.31

0.59

the

0.93

0.98

1.10

0.22

0.47

0.63

So. Advance Bag & Paper Co.

0.49

1.29

1.42

1.55

1.88

Warren

1.00

0.87

1.30

1.73

1.45

203/4

Steel
Remington Arms
Brothers

ment

over

plus

Increment

over

tEquivalent of

plus half

and

goals.

and

state;

dictated

become

altered,

Incre-

April,

masquerading

Our

econ¬

clothing.

Overall Program

for

Survival

Controlling the export of goods
to the Soviet Union and her satel¬

J. B.

Quoted

lites is

Tel. HUbbard 2-5500

total program

SCHERCK, LIGHTER COMPANY

Tele. BS 142

defenses

building

Member Midwest Stock Exchange

and
Direct Private

Landreth Building

Telephone to

A. M. Kidder & Co., New

York

Open End Phone to N.Y.C. Canal 6-1613

Be]l

Teletype

SL 456

trade

Garfield 0225

St. Louis 2, Mo.

L.D. 123

★

of creating military
aggression,
of

versus

the economic strength
of the free nations.
question whether to
not to trade is not simply

unity

Hence,
or

Mr.

Scott

WWUWHVHVUWWHUVWy

merely part of the larger
of the
free world's

framework

Maguire & Go. Inc.

31 Milk St.* Boston 9, Mass.

tion

doubt that

bent

(whose
mean

tion

of peace,
should

since

and

conquest

would, of course,

trade

tered

world

success

ever

all).

V-J

That

na¬

Day has al¬

distorted

its

foreign

trade at every opportunity to fur¬
ther those designs."
At the recent

Party Congress in

the Kremlin all the speakers, in¬

cluding Stalin and Malenkov,
iterated round-the-clock the

re¬

mon¬

shoves toward that desti¬

nation. Should

help

our enemy

along?
Shall

help the Soviet mon¬
beyond his present

ster to expand

gain of domination
lion

humans,

world's

killing

specifi¬

sphere*

some

supply

our

800 mil¬

military

the

reaching for
shall

over

one-third of the

population?

cally^ in

mirage of trade*
the means of

boys in Korea?

own

Supply Our Enemy?
Bear in

mind that 75% of the
goods used against our boys
by the North Koreans has beexx
war

going

there

via British
Macao

through Red Chinat
ships. A despatch from*

published

yesterday's

New

how

and

page

York

one

"Times'*

shipments from Rus¬

the

satellites

have

beent

transfer point.
And

the

May's
Nearing

argument

before

Mr.

Soviet

Vishinsky,

Foreign

dispelled

in debate
the
Ford

with
Hail

Forum, Boston, Mass., March 15, 1953.

any

concerning
as

United
York:

always, they

persistently acted as political

Part of

Anheuser- Busch

at the Inter¬

Economic Conference

Moscow last

omists' sheeps'

Warren Bros. Ce.

—

there is

aid,

their behavior

wolves

Sold

Security Ad¬
sadly

became

dream world

even

stopped altogether, to conform to
the political aims of the particular

have

—

sia

moment.

91/4

Bought

lived in

proclaim that showed

the years have Russia's

moves

national
•Equivalent of

who

disillusioned at first-hand: "If

recognize the unchal¬

political

more over

trade

15%

Co.

Corp.

ministrator,

avoiding hindrance by Nationalist
ships
and
American
lengeable fact that, above all, the Chinese
USSR is not at all interested in planes
by
using the Red-held:
trade per se, but as a strategic former pirate hideout of Lafsaml
weapon
to further her grand- Island in the Ladrones as a secret

asking

1947-9

Corp

Co.

Carborundum
Grinnell

main¬

nor

extinction is inevitable.

We must

Inc

Const.

trend is

Moscow and Mutual

nomies

without change, carrying on
and tested policy of

was,

the

his

If 9 year
trend is Recent

H 6 rear
for

nomic,
logical considerations.

Premier Malenkov in his olithic
policy of destroying all
inaugural address to the Supreme non-Russian
governments; or at
Soviet reiterated the old protesta¬
least, of giving the capitalist eco¬
tion that the Soviet Government

($2.50 neighbor's plane

1945-6

(years)

Harrisburg

Bag & Paper Go.

and

paper,

the

Louisiana. Sales peace, of international collabora¬
are running about $20 million antion, and of development of busi¬
nually, earnings on common about ness connections with all countries.
$1.70. Total assets (6-28-52) $15 This at the same moment that his
million. No preferred, or funded
representative at the ECE session
debt.
in Geneva is
indulging in the
Warren Brothers Co.—A leadusual violent "U. S. monopoly"
ing contractor and manufacturer forensics.
in the paving industry, this cornPolitical Realism the Key
pany
was
incorporated in West
Virginia, in 1900. It also makes a
We must discuss this question of
good deal of the road equipment trade-with-the-Russions with real-

stock divids. and splits

for

Corporation—

Anheuser-Busch,

Southern Advance

least,

some

In the economic field

now.

of Hodge,

Average annual

utive
divids.

Gorp.

Anticipated annual
avge. divid. 1953-5

Grinnell

broad-

political, military, eco¬
diplomatic, and psycho¬

hours ago

Tri-Annual Dividend Records and Projections

Active Markets in

town

kraft

materials in a wide range of in- standing, 8-31-52, 40,665
dustries, including automotive, cumulative—par $50).

the Newark
Brewery is also in the picture.
space

for

things

May

elements, electric resistors,
metal additives. The Company's products
are
marketed
under such trade names as "Car- required in its operations. Earn- Ism! My opponent here has pleaded
borundum," "Aloxite," and "Glo- ings on 235 thousand common for
increased
trade
against
a
bar." The bonded and coated shares amounted to $2.29 for the background of "neighborliness"
products are employed in the eight months ending August 31, and "cultural patterns." But he
shaping and finishing, by grind- 1952 ($3.44 on an annual basis), forgets that in this luxurious cul¬
ing, sharpening and polishing, of Term loan outstanding 12-31-51, tural citadel of Boston's Back Bay
metals, stone, wood, and other $350,000.
Preferred shares out- you do " not shoot down your

Ship- and

000 in

time

Most of its operations

rarrfed

are

mon¬

"com¬

mittee" has

p™r

MainP

range

encourage

olithic

same

pulp,

bass

DaDer

Krem¬

that this

cipal business of the Company is
the production and sale of crude

the

quite

question, but is In¬

involved

all trade. But—actually
fact, there —we are confronted
by the ruth¬
is little doubt
lessly aggressive designs of a na¬

7,4»dj4U of wnicn
JNemours &

iILnlS

r„

dealers

the-counter

extricably

the

lin.

detectors, targets and traps, was incorposwitches, etc., is now supplying rated in Delaware, in 1920. Its curReo Motors (for its truck tractors) rent sales are running about $80
with super-charged diesel engines million annually. As of 12-31-51,
capable of developing 150 h.p., at no funded debt. Preferred outa governed speed of 2,400 r. p.m. standing, 36,802 4*6% cumulative

there is set forth
accompanying table the
Net sales of $41 million (year
(P3*"
dividend records and projections ended 7-31-52), up a third over outsrandmg
for nine common stocks. That each the preceding year, were enjoyed 7" ."V
of these issues is highly liquid is by this $21 million (7-31-52) out^
On

Three Masters

rail

differ- magnet-type

change

regime

caused by such—as with
miscellaneous i railroad leading producer of sporting firestemming
from, equipment such as lifting jacks, arms, small arms, ammunitions,

liberality-conservatism

essen¬

post-Sta¬

lin

those

idealistic

tially
altered
In the words of W. Averell Harby reason of riman,
former
Ambassador
to

New

time

a
bit through the fererd stock. (12-31-52.)
ferred, or funded debt. (12-31-51.)
distributions, splits,
Buda Co. — This producer of
Remington Arms Co.—Now one
like? Fortunately, most diesel and gasoline engines, along century and a quarter! in age, this

the

"trade"

are

can

basic assumption

stock

ambiguities

quarrel with

records

ment

and

King

around,

that

use

time

dividend
rolls

Co.

niture, filing cabinets, safes, grille stock. (12-31-51.)
work, partitions,
and the like,
Harrisburg Steel Corp. — Lotraces
its history
to 1884.
The cated at its namesake, in Pennsylpresent company was incorporated vania, this company, incorporated

number

the

manufacturer

This

qualities

curtain in trade with iron curtain in
politics." Warns of serious
implications of swallowing Kremlin's trade propaganda. Sug¬
gests opportunities elsewhere for constructive expansion of
West's foreign trade.

also manufacturers plumbing and

Construction

Metal

persistently showed hostility to any¬
thing but autarchial trade by itself and satellites. Citing busi¬
nessmen's practical difficulties, asserts "impossibility of silk

dustrial humidification systems. It

of the stock,
million; Pre-

debt, $15
stock, none.

Art

hold-

trade because Kremlin has

at the

is still stalls automatic sprinkler systems,
industrial piping systems, and in-

families

80%

about

ferred

alyze them in
"m y s

company

Busch

and

Funded

issues and an¬

terms

the plant

rather exclusive affair, the An-

nine

look

1952)

(Sept. 30,

unit, let's

nals, to the tune of $4 million. AEC
center
near
Portsmouth,
Ownership in this $129 million Ohio. The company makes and in-

elements

able

construction

•*bi

end near-strategic goods to build np war
potential to destroy us; and have confined trade to statedirected policies, with deals on barter basis. We CANNOT

is million contract for mechanical

The company

pasteboard.

taking over the St. Louis Cardi-

desir¬

trio

formal change of regime to Three Masters

assumes

ested in strategic

which can offer impressive an opportunity to get into big Grinnell has adopted itself to the
dividend records, sound growth league baseball, without buying atomic environment, with a $230

many,

prospects, and high liquidity. Considering t h i s

May

change in long-continued eco¬
nomic policies. Maintains we SHOULD NOT try to enlarge
trade with the Russians, because actually they are only inter¬

'52

calendar

for

Malenkov?

$63

stock

preferred

With

By A. WILFRED MAY*

statements

1952

assets

funded debt at $10 V2

This equity affords the investor

the

Can We Do

equip¬

ment, iron and steel, woodworking,

01 Some Unlisted Stocks

Few

tool,

machine

and

electrical and agricultural

Thursday, March 19, 1953

never

the

them

Minister, himself

possibility of doubt

the Moscow-to-Koreat

follows
Nations
"The

Soviet

concealed

the

session

the

IV^arcl*
in

Union
fact

Newhas

that

Volume 177

Number 5204...The Commercial and Financial Chronicle

a&old and continues to sell
ments to its

Questions "Can"
"Should"

Since

arma¬

ally, China."
as

forbidden

terials

Well

to offer

raw

ma¬

the normal prewar basis.

Over

the

past130

the

years

Soviet Union has been incessantly

Trade

the

topic of our debate
publicised for some months

was

been

plugging to build
under

its

closed

up a

control.

own

area

Mr.

drive

wedge into
the
free
unity by appealing to

nations'

the

natural

for

urge

ness,
the Soviet's
to
achieve

autarchy

trade.

pense

busi¬

aim

real

The

the

""Should" has
in

not replaced "can"
question about doing busi¬

our

Carloadings

with

ness

matter

-a

the
of

Russians.

fact,

illusionment

the

over

And,

realistic

dis¬

' can'

pos¬

sibility makes the "should" wholly

The Kremlin has demonstrated

time and again that it is
only in¬
terested in acquiring
strategic or

near-strategic

ing.

materials

all

advance

Despite

protestations,
last

free

world

and

using

Soviet-bloc trade to create
crease

in¬

economic tensions and dif¬

ficulties

Soviet

the

bloc

free

world.

calculates

The

trade

ad¬

their

April's

trad¬

behavior

International

Eco¬

nomic Conference in Moscow
take

Europe
It

the

goods

can

offer.

their

again

ence

the USSR itself.

un¬

has

its

subject

peoples, but
terms of its military potential
or political
advance. It hopes to
terminate such trade as quickly
possible and to do

and

manner

most

nomic

at such

times

disruptive

such

that

Western

They showed
renegotiations

following the termination of the
three-year trade treaty with Nor¬

industrial

ex¬

light industry, which
provided the bulk of

formerly
Czech

exports

West, in
heavy indus¬

try

which

provides

the

bulk

exports to Russia.

eco¬

that in the recent Czech trials the

well-being of the free

na¬

tions."

And remember

main

charge
against
Slansky was that he

Rudolph
promoted

trade with the West.

Actions

Louder

Than

The Soviet has shown by every
since the War that it is not

How

act

uninterested

expired in January,
Attempts at renewal proved

The Soviet's offers to buy con¬
sumer
goods
which
the
West
wants to sell

invariably tied-

are

in with capital equipment or raw
materials to build up her war ma¬

chine.

Such

"package deals"

the

free

world,

vigorously

in trade with
but that it is

vitation

the

Business

last

fall

trade.

She has
the

in¬

discuss

East-West

consistently

other

America

can

business
non-stra¬

samples, there are, of course,

machinery set

the

forbidding examples of

plete extinction or permanent de¬
tention (as with Oatis).
Isn't it
bit difficult to

tomer with

approach

cus¬

such

apparent bargains.

Let

displaying

non-strategic
has insisted
for

hard

barter

any

goods,

bilateral deals and

currencies.

with

interest in
Russian

the

"You

the Tartar."

Certainly

must

When

the

sented

GATT

combine

countries in
to

raise

vive

and

the EPU.

opportunity

was

with

pre¬

other

non-partisan effort

living standards and

trade

the

re¬

initiation

the

European Recovery Program,
Molotov took

So I trust that I have convinced
you that
(1)
business wiui
wp

should not

even

,?'i: '

would.

do
(Z)

lVialeriKov; and

"-junot do business

Mr.

we
*

L.'

walk and his

Directions

after

States

shown

was

insistence

tions

satellites'
were

commodities

its

own

ropean

and

repara¬

creation

companies

industries

basic

forced

such ways as

excessive

demands

joint-trading

Conference,

which

represented

whole-souled

remove

administrative

effort

and

the barriers to trade.

The

countries

Eastern

have

Eu¬

actually

Moscow

trade,

professions

strategic

Autarchy
and

pro-

wanting

attempt

And

the

trade

solution

West

this

"Can

public

is
our

and

1,900,000

than

ago.

year

The number of persons now

in the months preceding the Korean

conflict."

which

On top of this the industry has won a signal victory in its fight
for clarification of control

policy after June 30, this trade weekly

This will be simply done by two orders, the first of which
will cancel all non-defense allocation authority as of June 30 and
notes.

the

second

CMP"

establish

will

"Defense

materials

guarantee

for

Materials

defense

System"
and

"little

atomic

energy

programs.
_

Some steel producers are starting to book third quarter
ness

the

assumption that business will be "back

busi¬
normal"

—except for setasides
which

are

on military and atomic
energy business
expected to amount to about 12% of total shipments,

Order

books

expected to fill

in relation to intensity of
driving demand for such items as hot- and

are

demand for products;

cold-rolled sheets and large bars will likely fill them up first.

Although

controls proponents are fighting a rear guard
for so-called defense supporting or
of setasides assuring
military priority, they are given little chance to succeed. Under
similar set-ups in the past, a wide range of purely civilian indus¬
action

some

get requirements

essential industries included in the program

tries have advanced

compelling arguments to

prove that they
essential, this trade weekly states.

under CMP

end

uses, using tonnages they had set aside
Belief is that DMS will establish military
setasides on a straight tonnage basis rather

guide.

and atomic energy
than the percentage basis used in the past.

Tracing

sources

of overwhelming demand leads most often to

Continued

page

are

pleased to

announce

that

CLAIRE

GOODWIN

has been elected Executive Vice President

of
For

and Assistant to the President

Allies and

our

with

ideally

would

ability

of this

Moscow,

organization

implement
political

the Kremlin's determined

Specializing

With Draper, Sears
(Special

to The

Financial

in corporate financing,

consolidations and private

chrontcle)

reorganizations,

placement of capital funds

AUGUSTA, Maine —J. Fuller
Ingraham has become associated

Hohag, Jr. until recently

was a

Director,

with Draper,

Vice President and Manager of Exploration

ton,

and

Socony-Vacuum Exploration Company

Sears & Co. of Bos¬

members

the

Stock

Boston

New

York

Exchanges. Mr.

Ingraham was formerly an officer
Ingraham, Millet & Company.

Blair Holdings Corporation
44 Wall

Street, New York. 5, N. Y.

Subsidiaries: BLAIR, ROLLINS & CO.,

Banff Oil Ltd.
Head Office: 809

With Renyx, Field
Eighth Ave. West,

Calgary, Alberta, Canada

(Special

The

FIRST CALIFORNIA

has

joined the staff of
.Renyx, Field & Co., Inc., 810 East
Colfax Avenue.

t i

INCORPORATED,

COMPANY,

Chronicle)

COLO—Richard

DENVER,
Johnston

Financial

are

tary and atomic energy programs.
They plan to accept orders up
to tbe point where enough will be left to meet expected require¬
ments for these rated

could

survival.

the need

trade

bank, "The Iron Age," national metalworking weekly, states
in its summary of the steel trade this week. Demand is surpris¬
ingly firm and raw materials adequate; expansion programs are
coming along nicely and chances for solving the seventh round
wage question without a strike look good.

helping the Kremlin's
desperate attempts to distort le¬
gitimate differences of opinion on

Manager
effective March 17,1953
Mr.

and

engaged in non-agricultural work, according to Secretary Weeks
of the United States Department of Commerce, "is about 10,000,000
higher than at the peak of World War II and 5,000,000 greater than

and propaganda warfare.

and General

high for the month.

thus

trade,

Vice President,

dispelling

very

over

increase

WALTON H. HOHAG, Jr.

in February climbed to 55,558,000, a
This was 500,000 above the January total,

employment

new

over

Business

the

confusion

ourselves

than

rostrum-battle

question,

Implications

important

dissension between

•

Non-farm

Broad

winning

claims for unemploy¬
seven years, while

level in

lowest

claims declined to the lowest level thus far this year.

new

Asia outside the Communist orbit.

threaten

the election

the

near

were

Europe's

whole-souled
develop new markets in
South America, Mexico, the Mid¬
dle East, Africa, and the parts of

The

announces

respect to national employment,

insurance

ment

good fillip can be given

problems

Far

Banff Oil Ltd.

moderately higher level.

from

effort to

production reached the

hower administrations.

deliver goods and Really Moving Toward
to the Kremlin on
Despite the Moscow

terms.

legal

who

when

active coopera¬
tion between the Churchill-Eisen¬

acceleration

another

weeks

Mills generally are assuming controls will be limited to mili¬

This

With

defense supporting or

Constructive Steps in Other

V-J Day the bosses
have
ever
since
stayed
For
the
economic
we^l-being
earnestly and sin¬ away, standing by, waiting for
of ourselves and our Western al¬
cerely
desired
East-West trade their predictions of Western Eu¬
lies, there are affirmative steps
revival in conjunction with the
ropean
collapse to come true— in other directions that can and
recovery
of
Europe.
But
the secure in their belief that Soviet
should
be
taken.
Reduction of
Soviet quickly and unexpectedly
non-cooperation
in
this
honest our trade
barriers, along with
showed its intentions in the op¬ effort to overcome the
ravages of their
putting of their own houses
posite direction; in using economic war would speed the collapse.
in order through curtailment of
along with political pressure to
The
Soviet
economic 1 bosses
inflation, can help—with possible
gain control over Eastern Europe. similarly
shunned
the
Havana
United

recent

it adds.

revolver?

are

this audience at least not be lured.

held at

com¬

to further trade expansion
Surely there cannot be a silk
intended
s to
lure
unsuspecting
through lowering tariff barriers curtain in trade while there is an
business-hungry countries to ex¬ or facilitating clearing of
accounts, iron curtain in politics.
change permanent serious losses
for small

highest point since the final quarter of 1943 at which time the alltime high was attained.
Compared with the year before output

the

Difficulties

with the Soviet bloc in

even

ECE's

furthering

ways

shunned

didn't

Moscow

answer

level

near-record

hostile

Bank.

bother

of goods for the country-at-large in the period

Weanesaay of last week continued to hold close to the

Steel business during the next six months looks like money

tegic materials if they literally
to it.
It has cannot enter and leave the coun¬
shunned the several organizations tries of those with whom they
abortive except for a few com¬
supposed
to
do
business?
existing within the UN, or coop¬ are
modities, and on a strictly barter
the
difficulties
of
erating with it, whose primary Apart from
basis, because the Russians were
function is to stimulate interna¬ inspection
and
the
reconciling
only interested in strategic ma¬
tional trade, as the ECE, the In¬ known tendency of non-matching
terials, as molybdenum, alumi¬
ternational
Monetary Fund and of deliveries with specifications
num, and steel alloys.
and
the
which

way

1952.

Total output
ended

Words

Practical

only

Auto Production

Industry

Business Failures

the

favor of expanding

Commodity Price Index
Food Price Index

and

expansion

limited

will

the

For

ample, the reorientation of Czech¬

vantages not in terms of tne wel¬
in

in¬

and

dependence from Western Europe,
but toward ever greater depend¬

oslovakia's

mistakably showed that they will
not

industrialization

greater

fare

academic.
_

the

Retail Trade

State of Trade

independence

from

Electric Output

ex¬

industriali¬

reported (in his 2nd
Do Business With
Report to the Congress on the
in view of a certain Mutual
Defense Assistance Con¬ out in a manner calculated to
obituary notice, and to avoid my
trol Act of 1951, of January, 1953): achieve eventual autarchy for the
thereby getting the decision by
bloc
at
the expense of
"The drop [in East-West trade] Soviet
default, the topic was changed to
trade.
The
has been mainly attributable to international
trade
substitute Malenkov for Stalin.
the Soviet policy of attempting to patterns of the satellites are being
-But this was the
only change. achieve
altered
not
economic
merely
to
reflect
"Can

Stalin?",

Steel Production

The

zation of the smaller countries of
the Soviet sphere is being carried

Harriman

)

(1209)

PEPSI-COLA

BOTTLING CO. OF LOS ANGELES

(1210)

The Commercial and Financial Chronicle

has been used by irrespon¬

power

Should Taft-Hartley Act
Outlaw "Polecat" Strikes?

sible union officials for their

The

during the present
Congress,, but how?

Congress

considering
e

tion

t s,

should

deal

called.

abuses

izing"

not

clearly
ered

That

the

establishment.

and

into

coerced

place.

work

the

his

"union¬

There

connected

Hartley

strikes.

union

affiliation.

Act

change

The

Taft-

prohibits the

"dual"

Social sanction

union

polecat

against

certified union, but of¬
protection to the workers

quite

fers

gener¬

ally

Bonnett

the

local

the

better

working

worker.

strike to

poses,

The

conditions

Strikes

anti-social.

force

generally

are

the

condemned by

fessional

law

under

certain

conditions

for

through

days

provisions

Act.

f ame

lent

its

But

special

ftrike—the
the

the

aid

"polecat"

Taft-Hartley

"polecat"

acterized
j

loyer

called

one

against

the

Prior

union

not

char¬

Chicago

) i

years

by
a

Most

strikes

workers

join
f

bey

union

polecat strike."

called

shop

are

force

plant

polecat

branch

called, a picket
intimidation

and

up,

resort

state

the

government.

distinct

and

consent

its

citizen

every

the

and

laws

the

vania

The

Commission

years

dend, just

was

—

the

beybnd
relief,
ized

contract

reach

then

the

labor

from

smallest,
crushed

Unionism

States

every

largest

its

will

em¬

the

sub¬

being

destroyed.".'
polecat strikes are

mine

and

picket

it,

intimidating anyone who ap¬
proaches the entrance to the mine.
The squad does not stop

timidating
workers'

erty

the

have

specific

and

been

both

mine

prop¬

dynamited >in

The

cases.

with in¬

nonstrikers;

houses

ethics

Congressional
to

exist."

committee:
nonunion

"The

does

who

not

Congress has already been

overliberal in protecting and

ferring

rights

new

deny

that

too

left

With

by the

powerful
in

gov¬

ma*

irresponsible

grant of priv¬
by the govern¬

every

ilege

the

ment

should

power

corresponding

responsibility. The waterfront
scandals

non-

show

how

this

great

Ira

U. Cobieigh

con¬

unionists

rights

for

Haven,

this

cen¬

at
times, a
heartbreaking financial performer.

Back around 1913 it
of

New

Haven

the whim

was

management

others

Congress

the most essential right
nonunionist—the right to

the

which

means

the

right

Halsey, Sluart Group
Offer Equip. Tr. Gtfs.
An

offering of $7,950,000 Chesa¬
&

Ohio

equipment

Ry.

trust

3V4%

serial

certificates,

ma¬

turing semi-annually Oct. 1, 1953
to
April 1, 1968, inclusive, was
made

The

yield

March

Stuart

Co.

Inc.

certificates
from

and

2.35%

Halsey,

associates.

were

priced

3.35%,

to
ac¬

not, and

is under

offer of these securities for sale

any

of such securities.

The

circumstances
solicitation

construed

as,

offer to buy

offering is made only by the Prospectus.

Southern

traction,
dreds
and

New

water

miles

and

rail.

Hun¬

franchises

trolley mileage
were
bought at

nosebleed

price levels, just as the
burgeoning private motor car in¬

dustry

lurking
stage/wings.

nomic

bought
tion

boatload

the:.

was

New

zation to

blew

Haven

transporta¬

obsolescence—and

prices; and

eco¬

for

fancy

its capitali¬

unwieldy proportions in

the process.
A

score

later, on Oct.
23, 1935, the New Haven, wallow¬
ing in a sea of unpayable interest,
on

tered

staggering funded debt,
the; Bankruptcy Court.

nancial

the

years

hp. diesel electric

locomotives;
4

se¬

road

1,000

switching

switching
hp. ,diesel

locomotives;

2,250 hp. diesel electric

surgery

First
Dated

Mortgage Bonds, 3%% Series due

passen--

March

1, 1953

Due

state

Commerce

March

1983

Commission.-

members

the

day-—surgery so incisive that
then existing preferred and

the

stock were, in due
course,
removed
from
the bal¬

common

forever

sheet.

ance

Co.; Blair.

Rollins

and

Cormick
chinson
Copies of
in

any

the Prospectus

State

where

the

may

be obtained

undersigned

from

may

the

lawfully

undersigned
offer

these

persons

Pollock
&

Co.;

Co.,

unit

these.

traffic,
cases

light

New

instead

density

Haven

building

from

came

March

19,

1953.

111—The

Inc.; Mc-

from

course,

57%

freight

of gross—1952).

(around

Here again

rying

truck

trailers,.^on^tracks.

Simply

by observingthe truck
congestion on U. S. Route No. 1,
.

the

idea

that

and

occurred

money as well.

driving

respondingly
factor, lowering
with less
no

for

wear

at all

wear

the

228

Haven

year,

for

delivery by August: Running

New

vice-presidents,

several

thousands

and

set

motion

of real estate

not

operation.

way

period

extensive
related

about

sloughed

were

number

about

reduced

5,000
off

off
sale

rail¬

was

em¬

(pres¬

19,350),

million in real estate
Dumaine

lopped

employees,

Altogether in the

1948-52,

ployees
ent

$10.5,

sold, and

by $50 million. Mr.

(who

passed

away

last

(Buck)

aversion to

Dumaine,

Jr., is now
President, and,-like his father, has
icy

aggressive pol¬

conservation

of 'cash," and

agement1 here,• is
For

example,

between

New

of the idea.

success

35,000 trailers last
should carry 45,000 this
with 100 new flat cars due

to
railway management
efficiency which decapi¬

Stock

Exchange has elected to member¬

ship

Philip L.

Carret,

Granbery,

Marache & Co., New York.

these

-all

carried

has been

icy

question

—

year, and

old

tated

all)

Well, the thing worked out. New

Yankee

costs,

the trailer, and

the truck (which

miles

needed

000 net

applied

insurance

between

Dumaine.

brass

flat car,

Eliminating night
road, with a cor¬
improved
safety

the

through the night
New York, would
competition,
and
make

lessen

York

top

from Boston to

On July 1, 1947, after a suitable
convalescence
in
the
Federal

capitalist
school, Frederic C.

trailer loaded

whisked

Boston

and

6V2 hours.

now

this traffic alone turned in

1952

$500,-

(before taxes).

Then,

dieselization

course,

major

Haven

ment

New

For

and

program

much

the

improve¬

terminal- facilities

and

yard consolidation is evident both
in

Boston

ther,

and

560

new

New

York.

pieces

Fur¬

rolling

equipment have been added since
1948, partly financed by equip¬
trust

ment

standing

453.000.

obligations—now out¬
the amount of $36,-

Everywhere

the New Haven
dence

you

look

you
see

a
cost-conscious,
progressive management.

About

has
and

been

developments suggest

cash

Jointly

yet

finances, cash position
elegantly - maintained

certain

the evi¬

ahead.

realizations

with

New

Haven

hunk

of Park

Both

roads

York

Central,

impressive

Avenue

real estate.

owns

now

seem

inclined

sell this

ing.

off, and stick to railroad¬
Well. New Haven's slice of

these holdings is probably worth
highly visible. today between $32 and $35 mil¬
the main line lion. It's nice to have something

York

and

Boston,

this

look

forward

ESTABLISHED 1894fc

STATE AND MUNICIPAL BONDS
CORPORATE BONDS
LOCAL STOCKS

Hut¬

Executive

the Midwest

passengers.

Midwest Exch. Member
of

The big slice of revenue
comes,

Co.; Mullaney. Wells
Co.; and F. S. Yantis & Co. Inc.

Committee

many

profit. Roughly 30% of 1952 gross

securities.

Kuhn, Loeb & Co.

being

up—and

CHICAGO,

that

passenger

Co., Inc.;

McMaster

ac¬

Budd

people. By the end of
1953, New Haven will be running

under¬

Baxter, Williams & Co.; Freeman
Co.; Gregory & Son. Inc.; Ira
Haupt & Co.; The Illinois Co.;
Wm.

has

the

OFFERING PRICE 100.456% AND ACCRUED
INTEREST

bane

Haven

time

writing
group
include:
R.
W.
Pressprich & Co.: L. F. Rothschild
&

the

two-man

car—a

argued for the

Issuance of the certificates is sub¬
ject to authorization by the Inter¬

Other

1983

diesel
carries

New

builder

Fi¬

the order of

was

locomotives; 2 1,600 hp. diesel the reduction of debts,
road
switching.1 locomo¬ d On the operating side, the im¬
tives; and 272 50-ton box cars. proved efficiency created by man¬
electric

Mississippi Power & Light Company

traffic

Another

lines,

solution

not

ger

$12,000,000

tual

cost

en¬

standard-gauge rail-' year) was a great respecter of
equipment, estimated to cost? balance sheets, and his favorite
$10,022,886, consisting of 29 1,500 item was cash! His son Frederic

electric
NEW ISSUE

roads,

many

found

points.

branch

imagination is being- deployed into
action.
Operating on the old por
litical principle "if you can't lick
em', join 'em," New Haven is now"
England—
doing a whacking business in car-'

road

these

cured by new

This

highly competitive with the time,

apply financial osmosis toward the

debt

cording

to maturity.
These certificates are

trains,
Passenger
and is now

rates.

picked

Court, New Haven emerged, a
going concern headed by a rugged

there

cost, and convenience, of air travel

sunk

volatile and,

this

procedure has-thus been stated by
a
high union official before a

right

ties

by "flying squad¬

unwilling to strike. In coal
mining, the squads move in on
nonunion

partic¬

Now

collection, by one corporate crea¬
;
:/
ture, of the total transport facili¬
often

are

Ha¬

tury, has been

organ¬

condition

reduce

effective

peake

fostered

rails

general,

ular.

and

rons" of organized goons to intim¬
idate
and
assault
workers
who

of these government-

one

well

New

United

and

These
made

Taft-Hartley Act has not made

join

managed

injunctive

power

the

servience

ago.

sponsored unions.

consider¬

ation

cur¬

used

train.

standard
has

rent

un¬

legal

the

sufficient to

ployer,

between

lawful. He declared also that:
"If

all

traffic

thing,

our

express

fare

number of four-hour

background

merely

organize workers in

establishment

extra

are

pleasant

but

Income"

the four-hour
an

for

ven

drive to

shop

strike

an¬

nounced, set

New

all the necessary provisions to
pro¬
tect the right of the worker not
to

divi¬

and

fide

the

upon

months,
plus the increase in the Pennsyl-

"organizational

live.

"pickets"

begins. The

violence

line

recent

bona

work,

ret

and

hands.

uonstrikers

CIO

that

exist. It is high time for

Strike

strikes;

polecat

Re¬

to protect

ranks

chine

com-,

sought "to set itself

separate

iior

Then

foster

Wagner Act,
a
private organization;

then it

the

ernment

membership.

functioned

strikes. Solicitation by union or¬
ganizers may have got one or more
employees to sign an application
rtrike

Pacific

perform¬

Seaboard, and

"labor"

land." So said the Anthracite Coal

also called "organization"

are

Constitution

were

"wildcat" one, a "striker" hotly

replied, "No, it's

Texas

market

Southern,

(polecat) picketing"—where there

anteed

ulterior purpose. Asked

onlooker if the strike

splashy

government, and to deny them the
personal liberties which are guar¬

building against their wishes

end for

held

its

business agent called the workers
<

n a

co¬

union.

in favor of the

"established"

was

name

when

ago

The
ance

Like¬

noted

government agency and to control
those who have refused to join

his

employees. It acquired this

his

em-

wishes

o r

Act

the

Even

right

fight bitterly against the Bpard

not

strike

unionism.

clearly outlaw this type.
The

join

the

and

Act

does

the

organizer

type of unionism

strike—and

Act

that

pulsory state union. The AFL, had

type

union

workers

CIO

the

Wagner

,-r

"self

that

enjoined

may

used in

was

mines.

all. illustrations.

are

troit

although

protect

Board prejudiced

"unfair labor practices" under

strikes"

Administered

the Taft-Hartley Act, and "emer¬
gency

Act,
proclaiming

workers to

erce

extortion. Jurisdictional strikes

are

b- b

union."

strument in the hands of the pro¬

payment of graft to union officials
as

called

organization,"
actually became in practice an in¬

clearly

are

Jf,

Wagner

created

was

Strikes, however,

of which

many

fraudently

conducted often for other pur¬

are

strike

who prefer "no

increase wages
or

the

cently, Judge Guy Miller of De¬

workers

since -the

force

called

has been given

was

became

out of polecat strikes;

grew

cases

another,

"scabs,"

is called

strike

may

rival

treated

are

with

Dr.

the

some

cases

strikes

"dual"

one

and

Act.

abuse

the

employer

are

Polecat

the

strike

"war" where violence

peal is to force.

cov¬

present

the

down

union

were

the

shutting

appeal to reason; the sole ap¬

unionism

miners

when

"Expanding Your

look at this
progressive carrier, and the assortment of
vehicles it offers for
long-haul investment.

new

"struck"

both

workers

one

out

Thus

greatest

The

the

members

"peaceful", intimida¬

fails.

into

specifically
with

shop or the
Exchange Bakery, the Duplex
plant is boycotted, and the pickets
Printing Press, the Bedford, the
attempt to prevent any shipments Apex
Hosiery, and the Shinner

ses-

amend-

strikers

may

By IRA U. COBLEIGII
Author of

ing to the late President Gompers
the AFL, not even three per¬

wise,
Act

neither

polecat strike, for, accord¬

cent

a "polecat" strike as one carried on to force
workers in plant to join a union, holds such strikes are not out*
lawed by Taft-Hartley Act where a plant is not already union¬
ized. Sets forth reasons why such strikes should be outlawed.

Taft-Hartley

Author, defining

The

strike

exceptional. For instance,

nor

was

New Orleans, La.

polecat

the bituminous coal strike of 1897

By CLARENCE E. BONNETT

amended

New Haven for Investors

own

self aggrandizement.

new

Thursday, March 19, 1953

...

RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG

1, GEORGIA

DISTANCE 421

to,

Volume 177

Number 5204... The Commercial and Financial
Chronicle

(1211)
matter

which

securities

really

you

the

New Haven*
own.

quite
if you want in.

justify the military establishment we are
supporting or the aid to
Europe and without this spending there are fears we will have a

You

choice

here,

may

have

4's

Ahead

due

2007, listed on the "
they sell @ 73%.
pretty good bond, pre¬

NYSE-.where
This

ceded
of

the

million
bonds

Providence

(which

due

are

stages

early retirement). These 1st
Refunding 4's appear to be 1
gaining
in 'investment
stature
&

something

rate

purpose

22nd

such

only

effect.

seriously concerned;

come

$62,760,000 of
Income 4V2's due 2022, traded
flat,
with

interest

These
and

because

which
the

payable

May

has

been

outstanding total. Now

66y2.
on

World,

your

This sells at around 61 and has the
built in gimmick of $8 back divi¬
accrued—a
could

which

sum

the

finally

listed

the

change,
be

there

but

com¬

now

with

Stock

(when

distributed

are

cateholders). Figures

our

was

speculative but not

glamorous
like

here

which

talk

waited

about.

Bonds

The

ferred,

turn,

till

much

that

had

position
his

statements

exploded

explosions.

His

translated

atomic
Press

else
the

the

wanted

now

out of

the

country

to think

competent authorities who feel the

Unless, however,

are

time, along with

would have

Administration.

the

real

see

Democrats

the

Yucca

end

this sort of:

Apparently that is not to be the

jubilation

Congress.

two

think

the

these

They

hence

years

days you

are

they

have only

confident

what

can

they

be.

much too

Republicans

they

soon to say what can be done.
making a mistake by expressing
accomplish. It is a lead pipe cinch

are

can

that if they don't effect

Carlisle Bargeron

greatest laughing stocks

that

the

one

check-up
had not said

there

late

Russia

same

to live

want

you

visit

doubts

subject he

office, he has his doubts.

new

Personally, I think it is

know.

but

Secretary,
into bomb

nuclear

This

They are
cackling about the new Administration's seeming inability to come
to grips with the
budget. "They are finding it impossible to reduce
the budget just as we knew
they would," the Democrats are chor¬
tling, and their propaganda is having an effect out in the
country.

bomb

Coast.

drastic reduction they will become the
have seen in a long time.

fitted with mannequins,

and

anyone

will be back in control

Pacific

Joe

had

been

Short,

occasion.

Two With Langill Co.

bers ' of

atomic

change,

bombs.

way.

son

for

Stock

Ex¬

can't

Spencer W.
the
on

New

Frank,

York

March

'over-the;-counter

ner

many

member

Stock

Income
into

The

convertible
share!

This announcement is neither

10
pre¬

Bruns,

fielder's

you'lL pardon

Banford

with

the

firm's sales staff. Their connection
with Langill & Co. was

broker.

Prior

thereto

Davenport Admits

icle" of March 12.

RICHMOND, Va.—Davenport &
Co., 1113 East Main Street, mem¬

W. A. Wright Opens

bers

the

New

York

and

PINEHURST, N. C.—William A.
Wright is engaging in the invest¬
business

from

offices

Ridgecrest Farm.

mond Stock

Exchanges,

April X
will admit Henry Lee Valentine H
and

Beverley

partnership

Munford

the

firm.

any

of these Shares,

into

750,000 Shares

ing Southern New England, does
not offer the

board

long hauls of
Southern

tills

other

originate

freight
of

lot

(on

total

roads.

haul

But

which

Public Service Electric and Gas

Sea¬

Pacific;

neither does it have the steel, ore,
wheat or lumber that fatten the

Common Stock
(without nominal

West-bound

its

Company

does

or par

value)

percentage

good);

has

real bunch of railroaders (and not

clippers)

coupon

running

show; its earnings

are

the

Price $2S7/8 a Share

improving;

its debt is

being whittled, and its

securities,

across

pear

you

the

seek

investment

analyzing

the

board,

upgrade.

dollars,
the

ap¬

Perhaps if

haven

new

for

your

you'll

values

Copies of the Prospectus

start

the

these Shares in

as¬

be obtained from only such of the undersigned as may Iedally offer
compliance with the securities laws of the respective States.

may

sorted securities of New Haven!

Established

MORGAN STANLEY &

1856

H. Hentz & Co.

BLYTH & CO., INC.

CO.

DREXEL & CO.

GLORE, FORGAN & CO.

THE FIRST BOSTON CORPORATION

GOLDMAN, SACHS & CO.

Members
York

New

Stock

American

New

Cotton

York

Commodity

Chicago
*

Exchange

Stock

New

Orleans
And

Exchange

Exchange,
Board

Cotton

other

N. Y. Cotton

Inc.

KIDDER, PEABODY & CO.

MERRILL LYNCH, PIERCE, FENNER & BEANE

SMITH, BARNEY & CO.

Trade

Exchange

STONE & WEBSTER SECURITIES CORPORA TION

UNION SECURITIES CORPORA TION

WHITE, WELD & CO.

Exchange Bldg.

DETROIT

GENEVA,

Incorporated

Exchanges

NEW YORK 4, N.
CHICAGO

HARR1MAN RIPLEY & CO.

Exchange

PITTSBURGH

SWITZERLAND

March

1053.IS,

Rich¬

These

term.

previously

reported in the "Financial Chron¬

offer to sell nor a solicitation of an offer to buy
offer is made only by the Prospectus.

Now it is true that New Haven,
with its 1,800 miles of track, serv¬

was

partner in Faroll & Company.

choice—if

baseball

part¬

Nordeman

Co.,
Street, New York City,
Langill, members of the New York Stock
B.
Langill, and Exchange. Mr. Frank has recently
of Peter V. Feil, been active as an individual floo:c

Thomas

an¬

Income Bonds give you a real old
fashioned

Exchange,

will become

60 Beaver

years,

Peter J. Feil, son
have become associated

ment
we

and
that

nounce

Midwest

Mr.

I know plenty of other

in fear of Russia

the

specialists

doubt in my mind

has

Bruns, Nordeman Admits

CHICAGO, 111.—Langill & Co.,
134 South La Salle
Street, mem¬

now

4'%%

for

If
to
-

blood curl,

civilization by debunking

the

you

preferred; and the

common

such

one,

beauty

are1* convertible

your

constructed

even

heard

But

un-

and

common;

parlay you've got

were

that

There you have it—a panorama
securities from a good bond
a

that

and

case.

have been

Frankly, I had thought

the

for

Truman didn't seek to correct it and there is

around $26 the equity is more
favorably situated for purchase.

down to

our

developed,

bombs

off

stuff with

feeling of futility, of helpless¬

never

nuclear

sent it to

high of $34 recently. This week

Russia

little scrambling

for the common, which

gone

passing coincidence that the Yucca

demonstration, three unidentified planes were sighted over
Alaska. It's such an old
story that you would think the American
people would be completely fed
up with it.

single

whole substance.

disclosed

slight squabble about directors
a

has

Flat explosion
staged just at the time when the annual
military appropria¬
are
before Congress.
Usually an unidentified submarine

appears

people

$3.85 per share
(after funds) for 1952—$6 million
net earnings in the
aggregate.

not

was

Flat

be the

great belief under which
live and under which it is necessary for us to live. Notwith¬
standing that no one had used the Russian bomb scare more than
he, I think he was now speaking his real mind and certainly he

certifi-

the total

recently caused

won't

designed to make

you

Houses

destroy

showed

common

tions

the

outcry in all your life as when Mr.
T'ni^an. after leaving the White House, expressed doubts that the
Russians had an atomic bomb.
It was as if he was seeking to

total

528,910

event

You

Ex¬

1,073,852

outstanding

the

544,542

was

can

trusting child, sitting unsus¬
pectingly at the fireside or asleep in bed—and then along comes
this dreadful enemy against whom, if
necessary, we must spend

with

atomic

that

the husband, the dutiful wife and the

or so.

mon

country

this

give

ness.

quite

are

proceeding.
country the Yucca Flat explosion
was
another tremendous event,
covered by
hordes of newspapermen and by television, all
transported to the scene free by the Military

—an

easily pay off
(it has the cash) in the next year
And

there

other

one

scale with which

currently earning its
dividend nearly three times over.

road

only

production

preferred,

dends

very likely to
in Europe are

Britain, only recently and nothing like

New Haven show
securities comes the 5%

case

■

Nowhere

Flat,

Of all the countries of the so-called Free

around

first.

yield-wise,
the sinking fund
nibbling away at

about

action there to step up defense production. In
Russia only a slight lifting of eyebrows was
caused.

attractive

are

explosion, is

Yucca

material reduction in

command.

war with Russia; a
This, if not the main

standards.

any

explosion

prices is rewarding.
After these

terribly .pathetic

under

power

going to have

are

expenditures unless they do it in
military and foreign aid. The military and the global minds
fighting against this with every ounce of resistance at their

the

frightened at the possibility of

second

each year and the
yield at current
,

to make

ofi the News

vast atomic explosion out in the Nevada wilds

become

for

so we are betwixt the devil and the
deep blue sea.
The Republicans have not the
slightest chance in the world

There

continue the spending

something,

By CARLISLE BARGERON

lien only by $14 million v
Harlem
River
4X/2S and

about $4
Terminal

depression, and if

Nearest the cash register is the
$?6.8 million of First and Refund¬

ing

III

The Commercial and Financial Chronicle...

(1212)

Lane-Wells Company

York

New

& Co., 330 Bay

Puget

York 5, N. Y.

Laird, Bissell & Meeds, 120 Broadway, New

Wall

and

National
York

Radio

I. du Pont &

Guerin

potentialities—Francis

St.

Exchange—$1.00 per

1952

and

the metal

and its

—

Revised Report

—

Eppler,

Co., Equitable Building, is pleased
to advise that David C. Dodge is
back at his desk as Cus¬
tomer's Man, after having served

again

Analysis and review of the Cement

—

two

Report—The

Company—Annual

Co.,

Broadway,

Ill

Texas

Company,

Company—Analysis—Peter P. McDermott

Stock

Co., 60 Beaver

American Hawaiian
25 Broad

oranda

Suspends Trading on American Stock Exchange
In Adolph Goebel Stock

Street, New York 4, N. Y. Also available are mem¬
Climax Molybdenum, Corn Products Co., and Mis¬

1952

published by

was

souri Pacific Railroad.

On March 13, the Securities and

report—Beneficial Loan

Exchange

Corporation, Wilmington, Del.

Company—Circular—Varnedoe, Chisholm
Co., Inc., Savannah Bank & Trust Building, Savannah, Ga.

William Street, New

Pasquale Co., 55

stock of Adolph

Co.—Memorandum—Smith,

Rock

Products

pended

Cribben
&

Sexton

and

Company—Analysis—Shillinglaw, Bolger

Company—Data—Bond, Richman & Co., 37 Wall Street,

day,

same

the

SEC

cording to

Casualty

Co., 120 South La Salle Street, Chicago 3, 111.

Cross

the
to

■

Company—Analysis—William Blair &
Company, 135 South La Salle Street, Chicago 3, 111. Also
available is an analysis of Continental Assurance Company.

the

Act

Darling

Co.—Information—Moreland

Co., Penobscot

Building, Detroit 26, Mich.
T.

Eaton

Company—Article in current issue of "Investments"

—Dominion Securities Corpn. Limited, 50

Toronto, Ont., Canada.

King Street West,

Also included in the

current

issue

investment suggestions in Canadian common stocks and

are

government, provincial, municipal and corporate bonds

Co.—Analysis—Eddy Brothers & Co., 33
Street, Hartford 3, Conn.

Lewis
Erie

Forge

Steel

Corporation—Bulletin—De

Witt

Conklin

Securities

and

1934

the

and

SEC

terstate

commerce

transaction in, or to
chase

rule

dealer
or

any

a pur¬

sale" of the stock "over-

the-counter" during

the period of

suspension.

Exchange and the SEC
have conferred

the

said to

are

the matter and

suspension

after

year's financial statement and the

of New York.

gave

Wall

Walker-Gooderham

Insurance

Worts—Memorandum—Kidder,

Company—Bulletin—A.

Kidder

accountants,

Co.,

records

that

reported

which

SECURITY ANALYST

•

Reg. Representative

•

GROWING CLIENTELE

•

Constructive Writer

•

PORTFOLIO ANALYSIS

Investment

Field

April 12-15, 1953 (Phila., Pa.)
National Federation of Financial

Analysts

Societies

sixth

•

Mature

•

SALARY & COMMISSION

Judgment

annual

convention at the Bellevue-Strat-

April 30-May 1, 1953
(St. Louis, Mo.)
Louis

St.

Box

319,

Dealers

Municipal

Finan¬

Park

Chronicle,

New

York 7,

N. Y.

Texas Group Investment

Association

ers

Bank¬

America

Spring Meeting at the Plaza Hotej
May 8, 1953

was

loss

net

ended

Nov.
was

the

for

(New York City)

Security Traders Association of
New York dinner at the Waldorf-

L A. DARLING

based

weeks

$437,070.

Association of

This

understated by at least

Firms

was

overstated by at least

correct

prepared

reported.

was

Stock

Exchange

Board of Governors

Meet¬

ing.
1953

(White

are

interested in

exceptional growth and profit
should

13-16,

May

write

annual re¬

for

Sulphur

Springs, W. Va.)

$300,000 and the net current asset
position

Dealers who

May 11-13, 1953 (St. Louis, Mo.)

port

and

latest

information

Investment Bankers Association
of

America

Spring

meeting

this

company.

the Greenbrier Hotel.

report is now being

and

will be distributed

to stockholders and filed with the

May 15, 1953 (Baltimore, Md.)
Baltimore Security Traders As¬
sociation 18th Annual Spring Out¬

Er'e

Forge
Portsmouth Steel

American
soon

under

Security Dealers Association

Trinity Place, New York 6, N. Y.

"as

stated.

the

Securities

Ex¬

change Act of 1934, has been taken
less

than

sion order is to

sion
all

half-dozen

The purpose of

sions.

Members: N.

was

According to SEC officials, the

Truster, Singer & Co.

Exchange

possible," it

move

Trading Markets

Stock

the

company.

5, 1953

Moreland & Co.

(New York City)

examine

In other

Members:

Bond Club of New York Annual

Midwest

Field Day at

Sleepy Hollow Coun¬

Stock

Exchange

Detroit Stock Exchange

try Club.

suspen¬

aspects of the financial state¬

ments

land.

occa¬

give the Commis¬

opportunity

ing at the Country Club of Mary¬

June

June 25-26,1953 (Cincinnati, Ohio)

16 5 1

Penobscot

Building

DETROIT 26, MICH.

Municipal Bond Dealers Group
of Cincinnati annual party at

Kenwood

m
m
m
m
m
m
m
m
m

Place,

Commercial

cial

May 7-8,1953 (San Antonio, Tex.;

financial reports listed the

The

that amount,

Sterling Inc.

AVAILABLE
•

last

inaccurate figures.

figure

Co.—Memorandum—Glore, Forgan & Co., 135 South
Street, Chicago 3, 111.

EVENTS

La Salle

Firth

additional

Astoria.

firm's

Street, New York 5, N. Y.

Kendall

for

Group annual outing.

Analysis — Paine,
Webber, Jackson & Curtis, 25 Broad Street, New York 4,
N. Y. Also available is an analysis of the National
City Bank

Home

extended

any

Guaranty Trust Company of New York

Peabody & Co., 17 Wall Street, New York 5, N. Y.

East

ford Hotel.

effect

induce

in¬

Herman J. Dobkin & Co., Goebel's

—

Gail

investi¬

Exchange

instrumentalities

decided

Organization, 100 Broadway, New York 5, N. Y.

137-39

COMING

SEC spokesman, the

Fiduciary Management, Inc.—Report—Eisele & King, Libalre,
Stout & Co., 50 Broadway, New York
4, N. Y.

Hiram

Commission

Ac¬

Officials of the American Stock

Emhart Manufacturing

—

affiliated with

England Avenue.

ten days.

and just previous

announcement.

X15C2-2 for any broker or
"to make use of the mails
means

been

action has the effect of making it
unlawful under Section 15 (c) (2)

New York 5, N. Y.
L.

now

gations have not been completed
within ten days, suspensions have

are listed,
trading in the stock sus¬
"until further notice" on

ordered

Co.—Bulletin—Price, McNeal &

Co., 165 Broadway, New York 6, N. Y.
Continental

Barney

Street, New York 5, N. Y.

Consolidated

Goebel, Inc.

Chronicle)

Fla.

Associates,

Security
New

Associates

Financial

PARK,
is

Borden

which the Goebel shares

Molybdenum

Co. 14 Wall

to The

company.
where

cases

(Special

The American Stock Exchange, on

York 5, N. Y.
Climax

issued

immediately for
days transactions in the com¬

ten

mon

Brunner—Report—De

Commission

order suspending

Bidd Manufacturing
&

have opened a
office at 557

With Security
WINTER

SEC issues order prohibiting transactions in Adolph Goebel
stock on American Stock Exchange on ground erroneous finan¬
cial statement to stockholders covering year ended Nov. 1,

Steamship—Memorandum—Hirsch & Co.,

Beneficial Loan Corporation—Annual

Exchanges,

Buckingham Way under the direc¬
tion of Ernest E. Charleston.

—ask for chart C. 312.
:

Co.,

San Francisco

local

by Edward R. Dewey, co¬

•

—

members of the
and
San
Francisco

York

New

Corporation—Analysis—H. Hentz

Calif.

FRANCISCO,

Davies

Street, New York 4, N. Y.

"Cycles, The Science of Prediction," sent to those
contributing $10 a year to Foundation for the Study of
Cycles, 9 East 77th Street, New York 21, N. Y.—Also in¬
cluded is a chart of stock market cycles projected to 1990
*

New Davies Branch
SAN

author of

Lieutenant in the
in Washington, D. C.

years

S. Navy

135

Street, New York 17, N. Y.

Co., 44 Wall Street, New York 5, N. Y.

Whiting

Ltd., 44 King Street, West Toronto, Ont., Canada.

Haupt

Hogle & Co.

DENVER, Colo.—J. A. Hogle &

& Co., 10 Post Office Square, Boston •,

Timken Detroit Axle

applications—Technical Mine Consultants,

What's Ahead?—Ten reports a year

Co.

Paper—Review—Ira

East 42nd

Metal—Booklet discussing highlights on

Uranium—The Magic

David Dodge Returns

York 6, N. Y.

New

16 Wall Street, New York 15, N. Y.

pany,

report—Radio

Plaza, New York

30 Rockefeller

Fidelity Union Life Building, Dallas

Turner,

Cement

Regis

Texas

Market—
outlook for 1953—Bankers Trust Com-

United States Government Securities and the Money
Review of

Hollywood Beach Hotel.

the

Mass.

Magazine—Monthly magazine issued by the New

Stock

annual

America—1952

of America,

Industry—Lerner

year—Department C, The
Exchange Magazine, 20 Broad Street, New York 5, N. Y,
York

Annual Convention at

To J. A.

Riverside

Association

Investment Bankers
of America

Tex.

Co., 1 Wall Street, New York 5, N. Y.

Co., Inc., 70 Pine Street, New York 5, N. Y.
The Exchange

Corporation

Republic Natural Gas Company

Common Stocks—Selected list—G. A. Saxton

Public Utility

Company—Reappraisal—Sutro

20, N. Y.

4, New York.

Portfolio—Recommendations to improve

(Hollywood, Fla.)

Street, New York 5, N. Y.

Corporation

13-year period—
Front Street, New

market performance over
Quotation Bureau, Inc., 46

Light

1953

Nov. 29-Dec. 4,

Inc.—Memorandum—B. G. Phillips & Co.,

Purolator Products,

parison between the listed industrial stocks used in the Dowthe 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Meet¬

ing.

Co., 120 Broadway, New York 5, N. Y.

Jones Averages and

yield

Power

Sound

Bros. &

up-to-date com¬

Stock Exchange

Firms Board of Governors

Broadway, New York 6, N. Y.

Ill

Stocks—Ten-year survey of 17 stocks-

Over-the-Countcr Index—Folder showing

Association of

Service Co.—Analysis—Ira Haupt & Co.,

Northwestern Public

(Louisville, Ky.)

Oct. 14-16

Central—Analysis—Vilas & Hickey, 49 Wall Street,
York 5, N. Y. Also available is a detailed review of the

Chicago Corporation.

for 1953—Ross, Knowles

Street, Toronto, Ont., Canada.

New York City Bank

Limited—Bulletin—W.

Company

Oil

York

New
Canada,—Current review and outlook

ciation

Dominion

Keyser Manly, 11 West 42nd Street, New York 18, N.

parties the following literature:

send interested

National Security Traders

4, N. Y.

British

New

(Sun Valley, Ida.)
Asso¬
20th Annual Convention.

Sept. 16-19, 1953

Pacific—Circular—Hardy & Co., 30 Broad Street, New

Missouri

will he pleased

understood that the firms mentioned

Country Club.

Co., 623 South Hope Street, Los Angeles 17, Calif.

Recommendations & Literature
to

Chicago Bond Traders Club An¬
nual Spring Outing at the Nordic

Corp.—Memorandum—Lester, Ryons &

Petroleum

MacMillan

1953

(Chicago, HI.)

June 27, 1953

—

58, Calif.

Dealer-Broker Investment
It is

1952 annual report and brochure

—

Company, 5610 South Soto Street, Los Angeles

Lane-Wells

Thursday, March 19,

Country dub.

the

Branch

Office—Bay City, Mieh.

Volume 177

Number 5204... The Commercial and Financial Chronicle

(1213)

Stock Market

in comparison with 1929.
These
figures all add up to the fact that
investment rather than

Prospects

tive

By HARRY D. COMER*
-

comparatively small
nancial

specula-

considerations

today.

Partner, Paine, Webber, Jackson & Curtis

Members, New York Stock Exchange

predominate these

article

"Fortune"

magazine written by Irwin Friend,

Stock market analyst, asserting present is not time of

year

will be able to do

now

at current

lower

be 1ess than normal.

At the

Indicate
the

market

the

over

form

vou

World

rather

seasonal

con-

1942075863-—

consist-

t h

the

•-

...

"year-

political develagainst which to

and

our

cerning

own

expectations

those

future

con-

develop-

ments.

the

kirrAvrAwt

A«A

r~t

record

s
A

alone,
«•

A/IA

basis for these
ii
x
-v;W
^ w-u two conclusions: (1) That there
you are all famihar and which
wjji be some rally from the late
starts
around
or
just
before
winter
««

Clmstmas

pattern
been

lows

time.

However,

the

(2)

the second quarter has

consistent

enough

0r?'

There

xi.

•

nutshell, the present

cold fact is that

lows

broken

to June.

That

the

has

1939

calculations

the

performance

Poor's 50

;

based

are

upon

Standard

all

given

market

fact

tionary
*

powers

—

are

busi-

One

that things
self

booming is of it-

are

bearish

the faet

says

indication

for

the

of the

dollar
on

the

either the buying or the

some

"managed economy." These
experts are now surer than
1

there

economic

exploring

not

the

much

general

background, but

all

have to do it because it gives

disaster.
•

and
be

must

the

therefore

close to

ever

They

11.

now

same

say
—

longest
some

simply

end.

Similar

reasoning has been put forth each
since

year

1945

economists and to

these

same

avail.

Bight here it should be pointed

Fire, casualty, etc. insurance companies

out

that

economics

cannot

separated from politics under

$4.2

Open-end investment companies

history having lasted

years

Usually,

face

we
11.

that the boom is

Economic Background

J™ x15L

a bust have
pretty rough sledding in
recent years "during which we
have been living under a so-called

had

that
m

profit

evitably followed by

our

2.3

present American system. Here's

3.7

sample of what I

1.3

____

nomics

mean.

The

eco¬

of our present budgetary
situation is such that Federal tax

1.9

reduction

Mutual and commercial banks

0.5

However,

Other

1.0

mands

they

lower prices

Closed-end investment companies

during

become

worthwhile
^

foundations,

churches,

etc

companies

which

$20.0*

ought to be postponed.
politics virtually de¬

some

(or,

year

Total

at
an

tax

the

reduction

latest,

election

year).

♦Of this

Continued

total, $3.5 billion represented preferred stocks.

New

present

Factors

stock

This announcement is neither

has

market

The

none of the flamboyance of 1929.

offer to sell nor a solicitation of an offer to buy any of these Shares.
offer is made only by the Prospectus.

The present market has a very
much solider base. True, industrial stock prices

slightly

now are

73,241 Shares

Po°r's •><> stock index)
Meanwhrle, liowCTrer, national income
has trebled and earnings on these

ures
-a:

the

national

for brokers'

—0

SltlOns

and

income.

Peninsular Telephone Company
Common Stock
(no

to....
r

other

speculative activity

indicators
small

are

Feb. Low

118.3

1940

value)

The Company is offering to the holders of its outstanding Common Stock
and to certain of its officers and employees the right to subscribe for these

shares,

as more fully set forth in the Prospectus. The subscription offer
will expire at 3:30 P. M., Eastern Standard Time on April 1,1953.

The several underwriters may offer shares of Common Stock at
prices not
less than the Subscription Price set forth above (less, in the case of sales

po-

par

Subscription Price

Fig-

loans, short
„

dealers,

now

any

concession allowed to dealers) and not

than either

the last sale

or current offering price on the American Stock
Exchange,
whichever is greater, plus an amount equal to the applicable American
Stock Exchange commission.

—Low, April-June—

98.8

Apr.

116.3

86.7

June 10

92.4

90.7

May
1
Apr. 28

84.4

75.2

105.1

110.9

Apr.

113.8

114.9

Apr. 24

131.7

133.3

Apr.

161.1

172.1

June 20

147.4

133.5

Copies of the Prospectus may be obtained from only such of the undersigned as may legally offer these Shares in compliance with

the securities laws

of the respective States.

135.6

148.5

May 17
Apr.
1

141.2

131.8

June 13

166.1

169.7

Apr.

218.6

211.9

MORGAN STANLEY & CO.
G. H. WALKER & CO.

COGGESHALL & HICKS

MERRILL LYNCH, PIERCE, FENNER & BEANE

June 29

230.3

230.8

138.6

May

(255.6)

?
•

136.3

(—1.6%)

(NOTE: Half of time, 2nd quarter low

came

in ApriL)

The

page

Some

this

1954,

over

next C0Upie 0f months,

1939.

vested

9.5%

Billions

S. & P. Index, 50 Industrial Stocks

Average (14 yrs.)

case

5.1

twice

1942

boom and prosperity.

group of economists

Shareholdings, End of 1952

1941.

well when you are

Take the present

ness

although owned by in¬
they are like instituholdings because discre-

'nduhf"al

*An
address by
Mr. Comer at the
Fame, Webber, Jackson & Curtis West«rn
Sales Managers
Conference, Chicago,
Illinois, March 14, 1953.

about $14,basis
the

selling side.

that

stocks

pared with 150% turnover in 1929,
9r a relative rate 10 times as high
*n 1929. Again it is worth nothinS that the value of stocks turned
•of Directors in the main, as well over last year was less than 1/10
as
investors, continue to think in °* the national income. That conterms of calendar years. And in trasts severely with 1929 when
times of stress and
strain, such as the value of trading was almost

funds

buyers

market, we might at
try to explain any
recurring trends. The most plaus:ible reason, I think, is that Boards

——

that

Big Board originated with mutual

likeiihood

stronff

was

Life insurance companies

years.
Last year the value of
Why Should the Market Tend to trading on the New York Stock
Hesitate in the Second Quarter?
Exchange was only 15% of the
Although we do not like to quar- value of stocks listed. That com-

dividuals,

and

xel with the

ffOU

early May. Again in 1951 the
stocks bave 1** about
February low was penetrated by a0UDiea»
-3% late in June, despite a fairly
More dramatic is a comparison
good spring rally in the interim. °f market activity in these two

least

higher than in 1929 (Standard &

industrials).

practically

Corporate pension funds—.

The

Last year the February low was
followed by a sizable rally which
was

"The trouble with logic is that it

works just

ex¬

since

(of course, here I am referring to the market as a whole;
my

•

the

years

the

said,

once

Universities,

period April

perience in most of the

administered

million.

720

4held about $26 UiImam at 4L
billion
the end
of 1952.
The importance of this
class of stock holdings lies in the

established

been

about

future. As David Friday

at somewhat

by the market in February have
a habit of being tested
closely or
oven

Exchange in 1952
equivalent

not

conclusions

econ-

to exactly

come

who do not purchase now win be
abje tG do so about as cheaply or

by both traders and investa

data, different

value of stock transactions

the second quarter.
A practical
COrollary of that theorem would
a good time of
year in which to be
j^. might be wise for trad•expect
the^ niarket. to get^ started ers
accept trading profits when
on
a
sustained
upswing.
The
In

opposite

stocks on the New York Stock Cy^

the

potential

war-

rant considerable attention at this

time

omists frequently

individuals but

tional

market
TA

however, there is

billion

^ billion.

•

nol

ture economic and

r
v>«

difficulty is that with the
set

going in the wrong direction
study when you are right."

Another major block consists of
?tock in Pers<>nal trusts owned by

-trustaes-' °n the basis of very
rough and not thoroughly reliable
fu-: 5? ,a>
appears that these trusts

ancy" against which to check

check

never

failing

Harry D. Comer

pattern to which I have

opments

not

good

fairly

On the basis of this pattern, we
have a sort of "normal expect_

ency
as

may

explanation

year,

The

the

The
same

because there is only one
an
increasingly important factor way **}at industrial production can
in the stock market is shown in g0 and that *s downward. Another
the following.: These companies grouP accePts conditions of proslast year
engaged
in
security
as Proof that underlying
transactions equal to about 35% P°Ucles
soand and that the
0f their combined net assets, ac- b°°™ will continue. As in the

shareholdings at the end of 1952
of insurance
and '^vestment companies, uni-

the'aboutS20

: This

referred

expressions of opin-

our

ion.

prepared for the New York Stock

an-

our

plausi-

the

year

crow-

satisfactory

sistent pattern
in this period
each

Institution

bility to

dignity

pay

Warn started,
there has been
a

Last

reasonableness

1939, year-end

when

until

Mvments

investors.

Brookings

nrosS wefe.in t,he hands

the

administered

apparent

conclusions—a

fa"rlyP rrunder way cKaUe oraanSonf "/elf
to a study by Standard & ^°etigToblL ta ec0nom!c for"
As
all know there is
F"arltal:)le
organizations,
self- Poors
Corp.,
indicating
total
g Pr0Die™111 economic toretag^enttency ^'companies to
'"Tk aorP°r?te Pension funds, trading in 1952 of $1,400 million. castm8'
conservju"ve dividers qusurteriy The E*of Ml "theTe
TeZTent ™e, total value of turnover of . Adherents to the old business
and then to pay extras at

basis,

Since

vidual

and

directly by the millions of indi-

stock

normally Exchange
estimated that there
part of the market supply) the were 6.5 million individuals own**
1
total stock is reduced to $190 bil¬ ing stock traded on Exchanges or
lion. Of that sum, $175 billion is in over-the-counter markets.
common
and $15 billion is
That mutual funds have become
pre¬

icult

war

yTar

purely seasonal

quite

the

owned

are

stock, owned diindividuals, the largest

cold

billion

may

remaining stocks,
representing something over 75%
of the total (70% of listed
stock)

SEC,

ferred.

outset, I would like to late a clear
Would happen in for dMdend

four months If prices per-

$140

a
permanent investment
other
(and hence not

Furnishes list of best

what

stock

three

the

hoxro vi»on
fKrApart from
h*ve been going through dur- rectly by

exchanges. Excluding
held by one corporation as

stock

stock groups.

Seasonal Pattern for 2nd Quarter

which

traded

prices during second quarter. Lists factors of strength in stock
market, as compared with the "flamboyance of 1929," which
place market on a more solid base, and explores market's
economic background. Holds probability of
coming events will
bolster stock market, and seasonal decline in second
quarter
of this year may

official

followed

institutions

Most

shows that the total market value
of all
outstanding stock in U. S.
corporations is about $230 billion,

expect a market upswing, concludes, however, that though there
will be a rally from last winter lows, buyers of stocks who
do not purchase

former

policies

and

different from those of individual
investors.

recent

group of fithe in-

institutions

vestment

March 19, 1953.

A. M. KIDDER & CO.

(1214)

The Commercial and Financial Chronicle

...Thursday, March 19, 1953

ably equipped to make propitious

Stalin and Malenhov

decisions

could

ROGER W. BABSON

Missouri Brevities

during the stormy days

ahead.

stem

knows

how

easily

war

situation

the

from

The

which

Mr. Babson

possibility of "palace revolution" in Russia,
but holds uncertainty will rule until some man of proven power
emerges in Moscow. Says Malenkov is less moderate than was
sees

Stalin, but he will

not show his hand until he is

sure

the

of his

help

family

who

quainted

did

ing the difficult

were

with

the

very

him.

Mr. doctors,
have given strong evi¬
Tolstoy dence that Stalin's illness was well
well ac¬ known by the ruling groups in

They

have

tiroes

many

told

that

had

little

very

the

Soviet

Moscow's

Union.

Now,

desperate

tighten

the

satellite

countries

despite

efforts

manacles

the

and

the

upon

entire

Soviet

dom-lovers

the

one

Russia

who could fill

his

shoes.
this

means

consider¬

able of

in-

conflict

n e r

the

amongst

leaders,

even

though

they

outwardly
k

Malenkov
the

the

ac-

w1 edge

n o

Dictator. At

new

present writing it is impossi¬

ble

will

say

how

able

job. I, however,
there

starting
comes,

long

Malenkov

hang
am

course,

have

the

Iron

been

Curtain.

Violence,
a characteristic of Russian
politics
in evidence long before the rise

Communism, has marked

struggle for personal
purges

the

elimination

the

The

power.

satellite

countries,

the

power

the

hold

can

will

While

the

job, there is

the world

this, however:

say

being

one

rest

Stalin

publicly,

his

that

speculating on what
policies and their ef¬

upon

be.

will
proven

Moscow. Until
shows

the

eulogized

coldest

and

cruelest struggles for power in the

History of the world will be going
behind

the

will

into

find

has

will

rush

violence

managed

all

that

hold

their

will

woes

by provoking

tremendous.

World

war

capi¬

tals will be filled with uneasiness.

Malenkov is
than
not

was

unite the

Moscow

his

until

take

action

masses

develop

diplomatic

spreading

get

the

war.

order

souri Pacific Railroad Co. is

mon

trends

which

will

without
Above all, it
by

for

unwise

extremely

rather

than

the

weather

Those owning busi¬

vane.

should

nesses

keep

firm

rein

and

but should

foolish

moves

into

which they

later regret.

may

All

the

above

indicates

mission

there will be

that

price

the

me,

fall

off,

decline

the

war

which would
the

Industrial

stocks
mean

Aver¬

Later, the situation will have

reviewed

Malenkov's

the

actions.

plan

public meeting held

response

been most

light

Jan. 29, the

security

holders

gratifying.

We believe

Oct.

3.05%

1963

April 1959

3.10

2.55

Oct.

3.125

Oct.

3.175

Oct.

2.80

April 1961

3.20

April 1966

Oct.

3.20

Oct.

3.35

1965

1956

2.85

2.90

April 1962

3.225

April 196.7

3.35

Oct.

1957

2.95

Oct.

3.225

Oct.

1967

reorganize

Pacific and

April 1958

3.00

April 1963

3.25

April 1968

the

out

20b plan proposed

The

filing of the petition with

the Court will mark the third step
in the six step program outlined
in the Chairman's letter of Jan. 29.
£

g prepared for

sold

filing with

in company

Some of the stock may
and some may

privately
v

Whitaker
its annual

Cable

Corporation

including
on

history in pair volume

non-re¬

the sale of proper¬

ty, amounted to $180,624, equal to

$1.44

with

$188,228,

share, compared

common

$1.50

share,

1951.
Net sales

were

$3,977,174.

$4,141,896, against

Sales of

products

regular

com¬

lower in 1952

were

and sales

price reduction and ris¬
ing production costs narrowed the

indicated in shipments by the
International Shoe Co. expected to

profit margin
ever,

the volume of defense

reach

tract

work,

are

approximately

16,000,000

three-month

period

line

general

sales

from the start of the
in

season

October

February,

show

divisions,

spring selling
through midincrease

about 22%.
He cautioned in his report, how¬

that "although we are con¬
of fidently expecting a good year, and
perhaps one of the best in our
ever,

we cannot say

25.%
be

increase

that

unit

20%

volume

the pattern for the entire

pointed out that sales

the

first

ago

has

less

January

than

although
good

are

they were a
the company

backlog

un¬

filled orders.
«

Western Auto Supply Co.

reports

sales

February

the

for

(Mo.)

month

$13,301,000,

month

same

sales

$24,281,000,

which

million,

«•-

including Bun¬

ker

Hill lead

and

million

equivalent

1951.

Jan.

taxes,

RR.,

amounted

after

income

$7,602,836,

com¬

Earnings

$3.55

were

per

the 2,7,16,222 shares presently out¬
standing. The increase in the num¬
ber

due to the 10%
paid on June 10,
1952, which reflects the increased

stock

dividend

capital investments made by the
stockholders

recerjt

and

years

for the Defense

Program projects.
earnings were equivalent

The 1951

to $5 per share on
of

shares.

ceived

similar

num¬

Stockholders

dividends

per

re¬

in 1952.

1952,

spent

about
St.

$3,800,000

has

$5,300,000

Joe

provements,

trustees

ended

basis, amounted to $105
million, in comparison with $111

period in 1952.

months

zinc

mission

same

the

figure for the
the

stabilized

was

capital

im¬

comparison

the

Authorization

1953, net income of Missouri-

higher and

was

The St. Joseph Lead Co. reports
that sales for 1952,

the $19,452,000
_fs

con¬

amounted

over-all sales and profit margin.

over

such items. How¬

classification

last

FOr the first two months of
totaled

this

in¬

of 311/2% over the $10,114,-

sales for the

about $1

ber

report for 1952 showed

net income,
curring gain

pany

Prospects for the largest quarter

were

$85,313,447

the

by
been

with
year.

board

given

for

of
ap¬

proximately $4,500,000 in 1953, of
which

$3,000,000

completion

will

by the

1953 of the Indian

latter

for

the

half

1966

$78,-

vs.

have

amounted

Olin Industries
•-

Ely Walker Dry Goods Com. & Pfds.

First National Bank
National Oats

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

Miss. Valley Gas

Moloney Electric Class "A"

Scruggs-Vandervoort-Barney
1

& CO. Inc.

Com. & Pfd.

Tenn. Production

Natural Gas & Oil

&. CO.

BLAIR, ROLLINS A CO.

Wagner Electric

INCORPORATED

BAXTER, WILLIAMS &. CO.

FREEMAN &. COMPANY

GREGORY & SON

Bought

INCORPORATED

ILLINOIS COMPANY

McCORMICK & CO.

WM. E. POLLOCK &

McMASTER HUTCHINSON

—

Sold

COMPANY

F. S. YANTIS

—r

Quoted

CO., INC.

A. CO.

ttHERCK. RICH I t* COMPANY
Member Midwest

MULLANEY, WELLS

Creek, Mo. lead

approximately $22,000,000.

The

CO.
Bell

Stock

Exchange

Landreth Building

INCORPORATED

SEC.

Issuance and sale

March 13, 1953

bei

now

Missouri

are

3.35

THE

tired

are

3.35

HAUPT A CO.

statement covering
offering of stock is

3.325

April 1957

IRA

Ensinger, President, said

proposed

of unsuccessful ef¬

3.35

L. F. ROTHSCHILD

100,000 shares of stock.

registration

250,662.

3.15

HALSEY, STUART

3.325

April 1965

April I960
Oct.

CO.

way

project. In the last six years, total

2.70

pur¬

expenditures

2.65

R. W. PRESSPRICH

The

enues

April 1956

—

outstanding.

3.30

1964

1955

1962

are

of the request is to pave the
for a 2-for-l split and the

against $3,992,214 for the preced¬
ing 12 months' period. Gross rev¬

Oct.

1961

shares,

be offered to stockholders.

many

1953,

April 1955

600,000
250,000

3.30

April 1964

Oct.

gain of 24.8%

3.25%

held

author¬

that

Kansas-Texas

2.45

years

31,

April 1954

Wire

present

the

sale of

the

increase the

common

which

meeting

by the 20

For

Oct.

has

Union

indicates

forts

000

April 1, 1968, inclusive

ized
from

the

year.
to

annual

March

the

crease

MATURITIES AND YIELDS

I960

that getting an ample margin over
the necessary assurances of assent

somewhat

unconditionally as to payment of par value and dividends by endorsement by
The Chesapeake and Ohio
Kailtvay Company

1959

announcement of the

our

State of New York

since

(Philadelphia Plan)

1954

per¬

plan with

the Chamber of Commerce of

four

Equipment Trust Certificates

1958

20b

our

through February.
and, on the whole, the near-term
Edgar E. Rand, President, said
prospects for peace look better. thai pair sales oi Liiernationai's
people agree with

Stockholders

pose

"Since

still

Oct.

file

cooling off period

Chesapeake and Ohio Railway
Second
Equipment Trust of 1953

2.55%

the

sion.

year

1955

necessary

the Interstate Commerce Commis¬

pairs for the

$7,950,000

Oct.

assent

petition to the Court for

our

costs,

be stampeded

not

rash

icit of 61 cents per common share
lor the year 1951.

the

assurances

138%

over

inventories

their

over

com¬

Rope Corporation will be asked at

received

year."

T» h* gaarauteed

31, 1952

808.965

have

will

$265,000 semi-annually October 1, 1953

addressed

security holders he said, "This is
inform you that in this rela¬
tively short period of time we

mature

27,

outstanding
(disre¬
garding preferred
dividend
ar¬
rears) were $3.56, as against a def¬

history,

Feb.

dated

ter,

day-to¬

day switches in the international

President Eisenhower is admir¬

iVi% Serial

receiv¬

willing to give the
by us a chance.
rumors. Don't rush to take radical
"The assurances given are not
action. Watch the situation calmly,
necessarily binding on the secu¬
and
look
for
the
underlying
rity holder."

age.

behind him.

be¬

our

people to be misled by early

our

that

say

workable

program

would

60-40 chance of

enable

term,

able

may

he is

sit¬

the

analyzq therjDrobabilities of

near

If the American

However, he will

hand"

until

fronts

man

his power, or until

forced

less moderate

Stalin.

"show

sure

Hence, it

becomes definitely clearer.

there is

abeyance. The tempation to unify
his people and take their minds
off

precari¬

new

himself

which

elements

Stalin

The

scenes.

As I

ing

new

fects

sense

the

filled

man

dictator

new

and

and hope.

uncertainty

some

emerges

vacuum

signs of internal strife be¬

many

hind

there

until

dictator

tion," started by the Government
or Army heads.

already

courage

Meanwhile,
rule

his

"palace revolu¬

Czechslovakia

must

new

that

assured

danger of the people
revolution.
If > one

it will be

with

All

that there will

Poland

The

war.

its

its people.

international

there

was

For the year ended Dec.
earnings per

be wise to lie low along the

may

and that he felt

Roger W. Babson

unite

cau¬

are

the

under

lie

leadership, might decide
to resort to full-scale

new

suddenly
war

used

Union,

uation

say

which

times

extension

avoid

ous

must

Bloc, factions favoring
Titoism may be encouraged. Free¬

between

ahead. Restraint and extreme

know

not

knew

friction

the

ease

tion

but

Act"

course,

Russia and the United States dur¬

stock market.
personally

"Mahaffie

plan for the reorganization of Mis¬

been more ing strong support from
security
conciliatory toward Russia than holders, according to T. C.
Davis,
we
have, but this attitude may Chairman of tne Board. In a iet-r

Therefore, he contends, our defense preparations will
continue, and a cooling-off period will be experienced in the

over

ahead.

immediately

period

England has, of

power.

Stalin

will be witnessing

proposed

Teletype

SL 456

St.

Louis 2,

Mo.

Garfield 9225
L. D. 123

Volume 177

Number 5204

The Commercial and Financial Chronicle

...

(1215)

Marjorie Allen
Public

Third World Tour

F. J. Herr With

Utility Securities

Cent. & S. W.
-

Frederick

By OWEN ELY

and

Brooklyn Union Gas Company
Union

share earnings in

has had some rather erratic
Due to the rapid rise in the cost

recent years.

coal

and

coke

the

deficit of 29 cents in

"''a

•

;

-nV
"

The

1947.

■'-v:

♦n-.,*

early postwar period, earnings dropped

sharply—from $2.73 in 1944 to

-v

•

'.
'■

■'><

••

»•

''A

■

.ff

■■

>•

;

then received several overdue rate increases, and earn¬
ings jumped to $4.32 in 1949, remaining around this level for three
years (in 1951 $2.22 was earned after adjustment for a 2-for-l

World

ings

1952, however, the company again encountered
difficulties in connection with its change-over

gas.

The

six

decline

the

Pictured above at bon voyage luncheon at the Downtown
Athletic Club, New York, is Miss Marjorie E.
Allen, Field Repre¬
sentative of Allen & Company, 30 Broad
Street, New York

City,

1952

who is

Reasons for the decline

firm.

they

tended

operate

(5) Some conversion work

be done

extra

which

after

costs

too

but

future

with

fast

natural

and

gas,

all of which added to labor
done improperly and had to

was

1953

world

tour

Harold Allen, one

for

good for

some

available.

Peter

New

improvement

City.

Cohn, member of the
Stock

Exchange,

will become

Westbrook, Jr.

be¬

are

coming associated with Barrett
Herrick & Co., Inc. of New York

partner in

Co., 120 Broad¬
New York City, members of

way,

the
Mr.

plished by nonreplacement of retiring employees.)

residential

York

April 1

(1) Gradual redaction in personnel, which by the end of 1953
may be around 3,800 vs. 4,500 at the end of 1950.
(This is accom¬
(2) The company is beginning

All

formerly

were

had

five

special campaign to increase
are perhaps 250,000
oneand
a

New

York

Cohn is
Koch

dissolved

house-heating. There
two-family houses in the area served and only 34,000 of these have
gas heating. The company hopes to increase the amount by 50,000
over a five-year period and the
10,000 goal for 1953 is being ex¬

and Coen were officers.

Stock

Exchange.

Eugene T. Burns Joins

partner in Spencer

Co.,

March

which

Fusz-Schmelzle & Go.

being

(Special to The Financial

31.

ST.

LOUIS,

Chronicle)

Mo. —Eugene

Burns has become associated with

Fusz-Schmelzle

Prugh, Gombest With

ceeded to date.

The gas rate for house-heating was reduced 10%
August, and is' expected to remain at this level. It is estimated
that the cost of heating the average small home is about $172 a

Bank

Barrel! Herrick & Go.

last

for both coal and gas; with oil the cost is $143 but additional
costs such as electricity, repairs and servicing bring the total cost
to $185. The company estimates that eventually it should be able
to double the present residential load without increasing its pay¬

KANSAS

Building,

Midwest
Burns

(Special to The Financial Chronicle)

year

Navy.

Prior

been

with

Of Banff Oil Ltd.
Banff Oil Ltd., with head office
at

809

gary,

Stock

was

Co., Boatmen's

members

Eighth Avenue West, Cal¬
Canada, have announced the

election

Mo.—Earl

Exchange.

17.

Hohag until recently

Mr.

director,

Coen,

Matthews

and

exploration

cony-Vacuum Exploration

the company is helping dealers in many ways
appliances such as a refrigerator which provides ice
cubes automatically, a combination stove and dishwasher, etc.
sell

This is under

since December have been

area

obtaining additional natural gas from Transcontinental Gas Pipe

It is possible that

this arrangement will be made permanent.

1955-56 the company

hopes to be receiving

c.f. natural gas daily, obtaining
rows

Crossing

from other

added

sources.

much

Goodbody & Co., 115 Broadway,
York City, member of the
leading stock and commodity ex¬

changes,' announces that Eugeno
E.
Kelly, Jr. is now associated
with

the

bond

department.

firm

its

municipal

Mr.

Kelly wail

formerly with the Harris Trust &
Savings Bank.

Joins L. A.

Hartnett, and prior thereto of

OMAHA,
Souder is
A.

Huey

Huey Company

The

Financial

Neb.

now

—

Chronicle;)

Joseph L.

connected

with

estimated

peak

demand

next winter

as an offering of these securities for sale,
solicitation of an offer to buy, any of such securities. The
offer is made only by means of the Prospectus,

or as an

offer

or as a

Union

standby manufacturing capacity (plus available refinery gas) to
take care of a peak load of almost 200 million c.f. a day compared
160 million

Sulphur and Oil Corporation

c.f.

The cost of natural gas to Brooklyn Union may be increased
6 cents per mcf. on March 18, when Transcontinental can
initiate its proposed rate increase under bond (until the FPC issues

some

$10,000,000

order). However, it is considered quite possible that comoensatory fuel adjustment clauses may be permitted in future by the

New York PSC, as a move has already been made in that direction.

Brooklyn Union's conversion cost

was

loans, which were later refunded by serial 3.4% notes.
Very little financing should be required over the next two or
three years, since construction needs (estimated at $4 million in
1953)

probably

can

taken

care

out

Sinking Fund Debentures due 1978

financed through short-

term bank

internal

cash

Price

100%

(plus accrued interest from March 1, 1953)

temporary bank loans.
CORRECTION—Last week's column

(March 12, pase 35) was

devoted to the subject of "growth companies" in the utility indus¬

try and included

101,000 Shares

table showing various companies in different

parts of the country which,

the basis of statistical data,

were

considered to be in the growth category. Owing to a mechanical
mishap, however, the word "low" was omitted from the heading
in the

second

column

should have read

the

The

tabulation.

follows: "%

Class A Stock
(Non-voting, $1

heading, therefore,

Price $54 per

Two With Noyes in
(Special to The Financial

Elgin

ELGIN, 111.—Sigler L. Boeman
and
Frederick C. Dressel have

Noyes
Both

associated

Co.,

&
were

Kratzet

with David A.

Building.

Buhl

formerly

Rey-

with

The

Financial

Chronicle)

DETROIT, Mich.—Frederick N.
staff

Tower

has

been

Baker,

Building,

Detroit

Stock

added

the

Simonds

Co.,

members

Copies of the Prospectus may be obtained from the undersigned only in those Slates
in which the undersigned may legally offer these securities in compliance

the

with the securities laws

Smith, Barney & Co.

Two With Waddell & Reed

Charles H. Mallory
the

New

York

firm of Mallory,
York

City,

(Special

Mallory, partner in
Stock

Exchange

Adee & Co., New

passed

away

home in Maine at the age of

Davis
now

his Reed,

sixty.

KANSAS
and

The

Inc.,

Financial

Chronicle)

CITY, Mo.—Floyd O.
Mary V. McArdle

connected

Avenue.

of the respective States.

Exchange.

lolds & Co.

Charles

Baker, Simonds Adds
(Special

Chronicle)

value)

Increase in Price Over 1936-1951

Low."

become

par

with

1012

Waddell

are

Baltimore

March 18, 1953

with

I,.

Co., Patterson Building.

150 million

gas through the new Nar¬
The company has adequate

Co.

Line under the "E" rate, this representing gas originally assigned
to New England (the Algonquin Pipe Line is still not operating).

So-

New

circumstances to be construed

buy,

Eugene Kelly With
Goodbody & Go.

new

(3) Utilities in the New York

wa:i
a n

the

Mr.

Metropolitan St. Louis Co.

James

and

effective March

Vice-President

manager

ing department of Morfeld, Moss
&

Hohag, Jr.

director

manager

formerly in the trad¬

Combest, Byron E. Prugh, M. J.

g-eneral

(Special

CITY,

Walton

Vice-President,

coal burners to gas,

to
tha

Hohag, Jr., V.-P.

In addition to its aggressive campaign to convert oil and

roll cost.

yearn

Commanded

with

Prugh, Combest & Land, Inc., of
Which
Messrs.
Combest, Prugh

L. F. Rothschild &

Improvements in

anticipated due to:

are

the

investment banking
of Miss Allen's three brothers

Frank

Admit P. A. Cohn

1953 and possibly 1954,
rising trend in earnings.

expected to show

are

exact estimate has been made

earnings

third

L. F. Rothschild lo

continue into

may

prospects seem

Share earnings in

time

over.

These

her

(4) Many consumers' meters had to be repaired

refunds had to be made to customers,

cost.

now

From left:

who comprise the firm; Murray
Lavin, General Manager of Allen
& Co.; Miss Allen, and Seymour
Dribben, Vice-President of Chem¬
ical Bank & Trust Company.

conversion period. (2) Savings in manpower after conversion were
less than anticipated. (3) Leaks in old mains occurred, and joints
because

Lt.

W. H.

earnings to $1.79 from the $2.22
as outlined by Presi¬
dent Cuthrell were the following: (1) load-building efforts, such
as promoting sale of appliances,
had to be abandoned during the

had to be tamped.

from

natural

The cost of the additional maintenance and servicing resulted
a

duty
the

was

over $13 million of coke ovens and affiliated gas
manufacturing plant was retired, both amounts being amortized
over a 10-year period.

a i

Lehman Corporation.

addition to which

reported previously.

be¬

Corporation

that

'* J!mi

•

some earn¬

well-organized and requiredr only
months to complete;
It cost nearly $21 million, in

seven

has

the Central

the

with

imIP

Corp*

Jr.

with

West

War

active

split-up in 1952).
In

Herr,

President, with
offices in Chicago.
He has spe-'
cialized in Public Utility Under¬
writing for Lehman Brothers fol-r
lowing his release at the end ol

company

conversion job

South

Assistant

Gas Company

associated

come

Brooklyn

The Commercial and Financial

(1216)

BENCHES
OFFICERS, ETC.

REVISED

CAPITALIZATIONS

distribution

secondary

the

The

Directors

New

Bank

•

of the Board
National

City College of New York and the
American
Institute
of
Banking
and is

25)

Norris

Cashier.

Sauter

Mr.

and

1929

since
the

been with

also

has

head"

the

Rio

Division

Office

Head

Board

Pennsylvania
York

liam

bank.

Its

announced

has

been

Bank

and has

Savings.

the

Public

Com¬

Trust

and

been active

•

in the

the
Co.

quarters

are

the

new

York,

the

and

Association

Bankers

past President of the

located at

election

Commercial

was

senior

National

Bank

officer

State

Bank

Reporting
of

Island,

Feb.

the

Commerce

000
a

Charles

;L.

and

•

Diehl,

that

capital of $200,000
the Audubon Na¬

date

Empire City Savings Bank of New
York

Bank

that at

announces

$200,000
$100,000 stock dividend. '

brought about
capital of the

meeting

Company." All of

basis

the

Dec.

31, 1952 state¬
combined bank will

surDlus

$3,000,000,

and

un¬

that

the

$1,000,000. It is proposed
combined

Company

New

York

President of W. L. Pfeiffer &

Inc.,

President of
Inc., and

Lochlea,
United

Co.,
Lake George
a director of

Cigar-Whelan Stores Corp.

the Bank's

•"■'•'!

■

$200,000 has

increase in the

Hillside

Hillside,

National

J.,

from

capital
$3,000,000 will be divided into

hundred

fifty

will

stockholders

remaining

thousand

been

elected

The

County

such

distributed

Vice-President of

Trust
N.

Company

Y. He

effected

was

Trust

The

under

National

Bank

Na¬

Trust

title of
&

Sav¬

Riverside."

The

Comptroller of the Currency

re¬

ports that at the effective date of
consolidation

bank
of

the

would

consolidated

have

capital stock
divided into 140,-

$2,800,000,

000 shares of

common

stock of the

value of $20 each; surplus of

par

$2,800,000; and
of not less than
*

undivided profits
$700,000.
*

Henry T. Mudd, Vice-President
and General Manager of the
Cyprus Mines Corporation, was
elected

director

the

Bank, Los Angeles, at

the

150,000 shares will be

The

under

Bank

the

Liberty and

with

Citizens

Savings

the

board

March

California

meeting
9, Frank L.
a

King, President of the bank

an¬

distributed to the stockholders of

nounced.

Real

University and the Massachusetts

Estate

Trust.

Each

the

graduate of Stanford

Institute of

$50

will

the

Cyprus Oil Co., Chairman ©t

com¬

the

Board

value

par

receive

five

outstanding,

the

bined bank for each share of Real

Liberty

now

has

20,000

presently

shares of $50 par value authorized
and

outstanding and

its stockholders

facturing

McClintock

Manu¬

Co., etc.

Earle Gafchell to Be

meeting of

Hayden, Stone Partner

scheduled for

was

Technology, Mr. Mudd

Vice-President and director of

holds.

25,000 shares in order to distribute
a
25% stock dividend, thus in¬
creasing the • outstanding capital
stock

cular

adds;

"It

25,000

shares.

The

cir¬
:

•

contemplated

that

this

stock dividend will be distributed

during

the

latter

part

April.

Assuming the distribution of such
stock

dividend, each of Liberty's

stockholders

will

receive

six

pany,

both of Philadelphia, have

holds."

Mr. Roberts is scheduled to be¬

informally agreed that their re¬
come Chairman of the
combined
spective banks should be combined
bank, with Mr. Krumrine Presi¬
head the credit depart¬ by a
merger or consolidation. A

White Plains
tinue to

ings

$100,000.

shares of

Board

charter

bank's

the combined bank for
Trustees, $200,000 to $400,000 the enlarged
(formerly
Modern
Industrial George L. Butler, formerly Secre¬ capital having become operative each share of Liberty he then
holds. If, for any reason, the 25%
Bank) was announced on March tary, was elected Treasurer; and as of Feb. 4.
stock dividend is not distributed
18 by Jacob Leichtman, President. Frederick H. Morris, formerly As¬
by Liberty, each of its stockhold¬
Mr. Pfeiffer, former Deputy State sistant
Secretary,
was
elected
Announcement
was
made
on
ers will receive seven and a half
Comptroller, Member of Congress Secretary, effective March 16.
March 13 that the directors of the
♦
*
♦
shares of the combined bank for
and
presently Chairman of the
Liberty Title and Trust Company
each share of Liberty he then
D. J. Mastellon of Scarsdale has and the Real Estate
Republican State Committee, is
Trust Com¬
Trust

the

Corona,

18, for the purpose of in¬
creasing its authorized stock to

A stock dividend of

President

consolidation
tional

stock

March

♦

William

capital

Long

dividend, while the sale

New York.

the

Bank

common

stockholders of Real Estate Trust,
which now has 30,000 shares of

to joining The
Bank for. tional Bank uf Audubon, N. J.,
Savings in 1929 as Vice-President, increased the amount from $100,-

Trust

Estate

the present offices of the respec¬
tive banks will be maintained. On

increased from $150,- Estate Trust which he

•

stock yielded an additional

$45,000.

Feb.

$225,000; part of the in¬
viz. $30,000 resulted from

stock

New

$100,000

March

was

columns

Amityville,

crease,

sale of
stock. The earlier
about through a

First National Bank*& Trust

N. Y.,
000

Feb.

600.

page

Com¬

(as

the

Prior

elected
of

Pfeiffer to the Board of Directors
of

Bank for

these

of the Savings and Mortgage
Division,
Bank of and a member of the faculty of
the Graduate School of Banking.
that Wil-'

Director

and

came

Directors

Exchange

at 38th Street.

The

and

Executive

the

director

which he is

20 West 48th Street and 8th Ave¬
nue

increase

State

Scott

President

American
*

New

Board

the

also

Bank

Real

further

amount

$100,000 of new

Savings Banks Association of the

New York.

The

pany

Janeiro

been assigned to the bank's Over¬
seas

member

McElvare

National

the official staff of
Branch, has

Mr.

Citizens

"Citizens

"Liberty

name

$400,- 300,000 shares of capital stock, with
in¬ a par value of $10 per share. One

from

has

dividend

Department. Mr. Norris, who was
formerly

the

$600,000

mittee

Credit

Letter of

creased

stock

Secretary

the bank

is presently

Travelers

capital

$500,000,

noted

occasion.

ler

gold watch

presented with

Credit Department. Mr. Schwend¬

1929

Bank

$2,500,000; The First Na¬

the

cess

National

inscribed in commemoration of the

was

City

President,

Fales,

informal dinner at which he

and is asso¬
ciated with the bank's Commercial

tional

is retir¬

and the other officers of the bank

Assistant
joined Na¬

appointed

was

DeCoursey

Rutgers

•

its

increased

and

Yonkers, N. Y., which on Jan. 16
000

William

& Savings Bank
Riverside, Calif., with common

Riverside and

divided profits and reserves in ex¬
•

in the City of New York,

and

Banking

Central

The

ing at the end of the month. On
March 10, Mr. McElvare was guest

Cashiers, were appointed Assistant

University.
and

17, Frank Sauter and Carl
Schwendler, formerly Assistant

bined bank will be formed under

pared for the Graduate School of ments, the
Banking, permanently placed in have resources of approximately
the libraries of the American In¬ $87,600,000, capital of $3,000,000,

March

Vice-Presidents

graduate of The Graduate

Senior

McElvare,

of The Bank for Savings

Trustee

ap¬

tional Bank of Corona, Calif., with
common stock of
$100,000; and the

stitute

•

Vice-President

Executive

City

held

York,

Rowland

the

of War Bonds.

sale

meeting

was

ice in the

the books closed.
%

cited

United
States Treasury Department for
outstanding and meritorious serv¬
and

share,

per

was

Bond

War

the formal

stock of

Payroll Deduction Plan, a member School of Banking at Rutgers
of the Federal Surplus Property University. He was recently hon¬
Commission for New York State ored by having his thesis, pre¬

First Boston Corp. at
with a dealer's
concession of $6 per share. The
offering was oversubscribed and
17

II,

War

Chairman

State

(par
$100) of J. P. Morgan & Co. In¬
corporated was offered on March
$302

World

During

1,500 shares of capital stock

for

submitted

in New York. Mr. proval of the directors and stock¬
joined The County holders and the regulatory author¬
Trust Company in 1947 and was ities. A circular letter issued by
elected an Assistant Vice-Presi¬ Charles S. Krumrine, President of
Title
and
Trust,
and
dent the same year. He is a mem¬ Liberty
ber of the Robert Morris Associ¬ Frank C. Roberts, Jr., President of
the Real Estate Trust, states that
ates, a nationwide credit organ¬
ization.
Mr. Mastellon attended it is contemplated that the com¬

Bankers

and

Bank

Chemical

Mastellon

CONSOLIDATIONS
NEW

The

Trust Company

News About Banks
NEW

with

Formerly plan to effect the combination will National Trust

Plains.

White

ment

Chronicle...Thursday, March 19. 1953

will

con¬

dent.

•

Earle

Gatchell

Earle Gatchell will be admitted
to

partnership in Hayden, Stone
Co., 25 Broad Street, New York
City, members of the New York
Stock Exchange, as of April 1Mr. Gatchell is Manager of the
firm's dealer and correspondent
&

department.

A stock dividend of

This announcement is neither

an offer to
sell, nor a solicitation of offers to buy, any of the shares.
The offering is made only by the Prospectus.

$300,000 has
resulted in raising the capital of
the Punxsutawney National Bank

D. Ray.

Kenney With
Seligman, Lubetkin

Punxsutawney, Pa., from $200,000
to
$500,000,
the enlarged
capital having become effective
Seligman, Lubetkin & Co., 30
Jan. 23,
according to a recent Pine Street, New York City, mem¬

New Issue

150,000 Shares

Bulletin

the

office

the

Comptroller of the Currency.
*

P. R. Mallory & Co. Inc.

The

4'/2% Cumulative Convertible Preferred Stock
($50 Par Value)

nounce

reported

of the

may

be obtained within

any

capital

state from any

undersigned only by persons to whom the undersigned
legally distribute the Prospectus in such states.

$500,000

appointment

Amardeil

National
was

directors
to

Higgioson Corporation

the

Lehman Brothers

nounced

White, Weld & Co.

New

the

March

"Times-

Banos

which
also

has

an¬

been

Department

Manager. Mr.
formerly manager
Foreign Banking Depart¬

Amardeil
of

the

was

Assistant

manager."
*

now

associated

with them. He

continue

will
to

specialize in

inactive,

out-

of-town

bank
D. Raymond

insurance

stocks

Kenney

with

special emphasis on the purchase
or
sale of control of such situa¬
tions.

The Charles Co. Formed
BROOKLYN, N. Y.—Charles W.
Badalamenti is engaging in an
vestment business from
1578 West Sixth

Eadalamenti's

announced

effective Feb. 28, of the

Citizens

reported
Feb. 26.

in¬

offices at

Street, under the

firm name of The Charles

Co. Mr.

activity in the in¬

vestment business was

The consolidation is

an¬

according

"The board

Luis

Orleans

ment and Mr. Banos

March 18,1953.

promoted to the position of For¬

eign

Smith, Barney & Co.

March

Bank

announced

New

Picayune"

Emil

Vice-President at the

further said:

Lynch, Pierce, Fenner & Beane

re¬

Ex¬

that D.

Raymond
Kenney,
for¬
merly of D.
Raymond
Kenney & Co.,
dissolved, is

and

The

Orleans,

Merrill

was

Whitney

Goldman, Sachs & Co.

stock

ing been increased from $300,000
as of Jan.
27, by a stock dividend
of $200,000.

may

Lee

ported by the First National Bank
of Belleville, 111., the amount hav¬

(plus accrued dividends from date of issue)

Copies of the Prospectus

Ind.,

$500,000,

per

Marion,

of Jan. 23.

Price $50

Stock

change,

the

York

Bank

dividend of $100,000 having raised
it to that amount from $400,000
as

capital of the Marion Na¬

tional
now

bers
New

the

previously

"Chronicle"

of
a

Volume 177

Number 5204... The Commercial and Financial Chronicle

(1217)

markets

The Canadian Dollar

the

By LOUIS RASMINSKY*

During the past year or so Can¬
ada and the Canadian dollar have
in for

come

good deal of favor¬ dian

able publicity in the United States.
The editors of
of

some

your

some

the

recent

connected

ments

dollar.

with

You

will

the

American

papers

news¬

the

Cana¬

appreciate
am

tered

into

Canadian

dollar

currently
quoted in the exchange markets
at $1.02 American does not mean
that

Canadians

telligent

certainly

are

not

each

other

who could

produce
most

the

glowing

account of

our

present pros¬

Louis

perity and fu¬
ture greatness,
who could pay

Rasminsky

tribute to

thrift.

our

This

the deepest
reputed wisdom and
warm

enthusi¬

ana

astic

discovery of Canada is, of
course, highly gratifying. It is also
a bit
frightening.
For

one

thing it puts

who is asked to talk to
can

audience

mine

somewhat

Canadian
half

senses

expects to

pear

the

with

the

wand

Ameri¬

subject such

ill

The

ease.

that his audience
see

someone

platform

traditional

Canadian

ap¬

equipped

cloak

and

the

magician, and pro¬
pull a budgetary surplus
out of the air, then defy the laws
of gravity by
making the Cana¬

ceed

dian dollar rise above the Ameri¬
can

dollar; and finally, for

core,

strike

the

lectern

en¬

with

his

magic wand and transform it into
a
large
stockpile
of
uranium.
Such

expectations can, of course,
only lead to grievous disappoint¬

ment.

why

another

reason,
feels

Canadian

awkwardness
American

talking

audience

economic

development

of
Americans

purpose

communicate

sober and prosaic account

address

Mr.

Rasminsky

expensive

the

past

exchange market,
we
have in Canada, the
currency
pnee
of
the

Canadian dollar

determined by

supply and demand, just like
other price.
If the foreign
mand

for

Canadian

relative

creases

rate.

The

freeing of the Canadian dol¬
followed by a steady rise
in its value on the foreign ex¬
change markets of the world. By
lar

foreign currencies

had risen to
ican

March of last year it
parity with the Amer¬

dollar

and

the Canadian dollar has been con¬

higher price

than your currency.
Today you
have to pay about $1.02 American
to

get
In

Canadian dollar.
few minutes I am

going
try to explain what significance
a

should be attached to
the

value

the

rise

the Canadian

dollar

after the freeing of the exchange
in October 1950.
But before

rate

doing that, I would like to say
something about what significance
should

some

the
of

not

all

the fallacy that the

cur¬

exchange reflects in
but

economic

the

people

and

the

separate

Canadian

same

name.

dollar

called

*be Canadian dollar

bas occurred at

the

Cana-

if„«i

rmS

productive
intend to

Canada

development

But

serves.

the

poach

our

their

before

connection

and I do not

resources

pre-

considering

between

these de-

velopments and the value of the
Canadian
a

dollar, I want to give
ancj figUres to indi-

facts

few

sha^plv

2SSS

Hnllerc

rate

Canadian

increase

population

nnri

invest

£r?n««anni
On

from

volume>

was
than

rouShly
in

one

1946

and

in Canadian
and

the ntih^r t?dl rX the
other side of ihl

demand

currencies,

goods

and

nomic

ether

®®™.ces

grQwth .g the proportion
output devoted to capital

Qur

investment—that is, additions to
plant

and

equipment, new constructi0n, development of new resimilar

increases

capacity.

Since

and

sources

productive

the

^1 slightly. The
only <:liShtlSvmeTht

But its

had

dollar has been

different

price

goods
than

but

realize

that

does

not

is broadly accurate
to say that our dollar went up
because
foreigners substantially
increased their purchases of Cavery

far.

nadian
their

the

and

goodsand
an.
long-term investments in

Canada, while our demand for
foreign currencies lagged behind,

usual

its

meet

and

needs.

power

new

its

fac¬

its

country
between

the rate of economic development
it wants and the current standard
of

living its people want: access
foreign capital enables such a
country either to expand faster,
to

live

better

panding, than
be possible.

the

development

flows

into

while

would

ex¬

otherwise

0f natural

normally

0il

ferent

paper

But

resources—particularly
iron ore, pulp and
and a wide range of metals.

and

gas,

have

also

been
.

steadily

and

our

power

Canada

not

been and

form

than

five hundred

Continued

being offered to the public.

of record only.

Company

Notes

1, 1973

Price 100

business?

Direct placement

of the above Notes has been negotiated by the undersignedU

you

Co.

Members New York Stock Exchange

Sixty W all Street, New York 5, N.

Exchange
and The Investment Dealers* Association of Canada

Boston
March 13,1953

Cleveland

Chicago

received

million

$10,000,000

Due March

inflows.

the

NEW ISSUE

the

well

dollars

long-term capital, mainly from

and transport fa¬

are not

though the outflows
take a somewhat dif¬

1952, for instance,

over

expanding our industrial capacity

out

it,

Members: The Toronto Stock

plants, oil refineries,

faring in 1953? What effect will

STREET, TORONTO, CANADA

and

Salomon Bros. & Hutzler

BAY

The

the

recent economic and

on,
the less would be
available to meet the current con¬

tal

jnt0

This advertisement appears as a matter

Current Review and Outlook

Ross, Knowles

goods

output it used to build

g0ne

3%% Promissory

complimentary copy will he mailed to
gladly upon request.

for

With¬

which inflows of foreign

330

situation

additional

capital make possible, a young
country would have to depend
entirely on its own output to

part 0f this investment in Canada

These Notes have

CANADA—

services

growing country.

the

the exchange

political developments have
Our current Monthly
Bulletin discusses some of these questions, and
outlines probable near term trends.

and
she

sold, and
paying for the balance out of
large receipts of investment capi¬
tal from outside Canada.
Indeed,

bas

Associates Investment

Canadian

account,

quoted

than

ca¬

balance

weak

current

by different forces, and
frequently than not the

American dollar

of,

is de¬

not

in spite

result was a war we have been makin£ very
resu t was a
iarge outiays on new capital inIt is a rather astonishing fact,
of the exchange rate vestment \h
total
about
$25 therefore, that both in the year
to a point where additional supbmi(m ^
and haye been just ended, and over the postwar
plies of Canadian d?llars were
rjsjng from year to year untii in period as a whole, Canada has
tempted onto the mar et.
■
1952 almost a quarter of our total devoted a
very high proportion
You will
appreciate that this output went to enlarge our future of its
output to the expansion of
little sketch of how our exchange
capacity. This proportion is very its productive capacity without,
market has worked in the past
high in comparison with most on balance, importing capital from
year
or
so
is drastically over- other countries and even higher outside the
country. The words
simplified.
So far as it goes, I than the
corresponding figures for "on balance" are important: for
think it is reasonably accurate— the United States.
A substantial it must be remembered that capi¬

bidding

dollar.

value

Ca¬

productive

termined

March

risen
as

our

abroad

°UtpUt in *952' in termS °f PhySi" tories,

cal

has

services

national

has

of,

the

no:

requirements
almOSt double What it WaS just sumption
people.
Every growing
m
tbe warto beforemoasurp ofAnother signifiC1anada,s
has to strike a balance
eco-

Canadian

for

pay

money

development

resource

buying

the

accession

Our

that

payments

out

been

has

dollar

the

frnm

wanted

and

immigration.

quarter larger

onS ^eeraWc
hli^hpv
because they wanted

us,

for-

that

During the past six years,

Canadian

enough,

pacity is expanding at an ex¬
tremely rapid rate. In most past
periods of rapid economic growth

new

natural

the

answer

because

fact

expansion that has occurred,

net

because

the

cate the general magnitude of the

it further enhanced by the

T-SIJ* J??SS

the

much

Surprisingly

nadian

of Newfoundland and by large

exchange' rate

think

a time when the
Canadian economy has been exJvaiJ }n£ very ,rapl<? y\,. know
lai:er speakers in this series
a*'e g°inS+ tp describe in detail

exactlv what has happened during

value

dollar?

con¬

fronts

many

Has the expansion of our econ¬

currency

American

How is Canada

inevitable.

distinct

the

happens

This is

probably

and

from

The

dollar

$1.02 American
speak of it as
of 2% over

growth

premium

the American dollar.
venient

way

strengths

Canadian

quoted

being at

literal

respective countries.

that

unit

it.

dis¬

mysterious

our

But

relative

leads

attached

would

in¬

demand

place

and our numbers have been

dollar

during the past ferings.
year or so, though there have nat¬ market,
urally been some ups and downs, foreign
sistently quoted at

de¬

taking

bid

dian

was

February

any

dollars
our

creased

exchange

year

free

SmJSfirapaZil

official

our

Canadian

1953.

the

was

foreign

could buy

you

That

money.

the Town Hall entitled "Canada
—Nation on the March," New York
City,

10,

1950,

Government

such

Canadian

lar,

series at

market,

the

official price of the Canadian dol¬

now

therefore, resist the temptation to
rhapsodize, and shall give you in¬

•An

American

years

of the enthusiam he himself

past

Canadian dollar for 90 cents in

fact

feels about his country.
However,
there is nothing which seems less
necessary at the moment. I shall,

stead

in the free
a

their

Normally, the main
Canadian talking to

Canadian

rate

have considerable confidence

the

decided to unpeg the currency and
to be determined

rent

time.

allow its value

some

dollar

Before October,

so.

the

country during the past few
in the future.

some

when

event

recent

commodity

exchange value of

Canadian

year

has

been

change

recent

why
become

two?

Canada than the rise

the foreign

the

Dollar

to focus American

attention
in

that

suppose

pose

Canadians take great pride in the

and

has done

too,

this

Exchange Value

Canadian

First

There

Now
in

in-

virtuous, and
richer
than

have

™
^be nse

Americans

dollar

friendly com¬
petition with
see

briety.

that

not

and

dolla^Tte^ct'that

the American

the
truly
Canadian
characteristics of caution and so¬

Rise

balanced

recently in the Canadian econ- omy during the past few years
strengthened
our
omy, and to understand their automatically
connection with our foreign pay- balance of international payments
and
so
raised the foreign
ex¬
naents position.
•

stantially in price,

displaying

en¬

more and invested more
Canada—and why has Cana-

which

couple of years it has risen sub-

that in following this course I

seem

have

why have foreigners recently cilities. Our economy is going
through a period of rapid but

bought

The significant thing about the
Canadian dollar is that in the past

and pe¬

riodicals

But

both

leading

would

because

regarded at normal.

develop¬

the

and

units

think,

happen to dian demand for foreign goods, rather than a violent, narrowlydollars, that there is services and investments lagged based boom.
some
necessary
relationship be- behind?
In
order
to
answer
Canadian Expansion and the
tween them, whether at par or at
these questions, it - is necessary
some other rate, which should be
Balance-of-Payments
to examine some of the changes

Pointing out Canadian dollar is a currency unit distinct from
U. S. dollar, official of Canadian central bank explains rise in
Canadian dollar's exchange rate is due to sharp demand for
Canadian goods and services, leading to a favorable balanceof-payments position. Cites recent expansion of Canada's econ¬
omy, and contends inflow of foreign capital into Canada is off¬
set by a capital outflow. Lays Canada's
prosperity to a free
economy and sound fiscal and monetary policies.

}

world.
to

Canadian

currency
be called

Executive Assistant to the Governors, Bank of Canada

i "

the

mistake

San Francisco

page

The Commercial and Financial Chronicle...

(1218)

Now the other possibility that
increase. In other words,
quite a difference between the Eisenhower Administration is
a
level of high expenditures and going to face during the next four
a
constantly increasing rate of years is just exactly the opposite,
high expenditures. So this year the possibility of a disastrous de¬
Let's see just how that
we
are
not only getting the ef¬ flation.
fect of
the
very
high level of sort of a depression might work

rapid

Stoch Market

i Real Estate Boom

By ROY E. WENZLICK*
Real Estate Analyst,

defense

St. Louis, Mo.

the

Though pointing out in 1953 "we are going to have more of
the same," real estate and financial
analyst says two things
Administration should watch

new

introduction, I

other

words, it

there

chance

1953.

o r

same.

seems

that

Now

many

forecast¬

ers

are

that

saying

from

ing.

Roy Wenzlick

the

year

just

many

creased

getting into,

1953,

fields

the

ture

between

collapse of the market
collapse is expected in ad¬
vance.
Every collapse we have
ever had in the stock market Has
a

if that

an
a

unexpected collapse. But
movement

any sort is
expected long enough in advance,

are

$50
our

^Abstracted
the

Builders

from

the
and

the last

address

by Mr.
Meeting of
Realtors, sponsored by
Savings
of
Cleveland,

8th

Annual

the
Society
for
Cleveland, O., Jan. 28,

19S3.

the

$38

first

the

think

United

election.

never

half

have

since the

chart,

would

are

also

which

after

time

right.

peak.

the

ber

one

year

States.

ago,

you

will find in

you

marriages

is at

the

fact

year
and they are at allpeaks, the chance of a down¬

thing

13 years there has only
year in which the num¬

past

been

same

out

chart,

our

time
have

family formation

new

United

across

the

United

the

lower than

was

present time,
that

the

deal

higher than it

ago.

Then

you

in spite

population

States

great

was

complete

years

the

Then

think

tremendous

these factors
if not at, the
Now when things

affects the

present

are

brought

rate

to,

that

the

going
against is this

the

low, there is only
one way
they can go, and that is
up; but, on the other hand, after
they have been going up year

believe that the United States has
made

that

guard

down quite

are

have

been

election.

all

all-time

since

States

and

very

factor

situation

the factors that

general business,

Another

eco¬

ward movement, of
a change
course, is far
future, you will find that the
relatively short greater than it is when the fig¬ number of females
reaching mar¬
have experienced., I ures are much lower.
riageable age is going to continue

seen

thinking

time

United

billion

billion.
that

are

Now

just

are

defense expendi¬
run

$55 and $60

some place
billion, and

that 1954 will

change to the
gotten far more

have

the

factor

second

quite

interest

that

important

rates

have

that

drop

until

1957,

time it will be 31

and

that

by
since

years

been

just about
expenditure.

the

same

sized

This year, the

big increase over
in itself will be quite
stimulating. On the other hand,

last

year,

are

get to 1954, while
going to have expenditures

of about

have the

the

other

not

inconceivable

market

think

that

the

might

riskless

stock

that

investments,

even

much
think

later

severe:

Her about three

would

ffff

the

Administration

:is

that

watching

possibility.I

do"

know

economists

some

That is quite an

about

when

-■

you

mortgage interest,.
about something

believe

boom

neriod

ahead.

tell

you

not

buying

market.

can

that

quite

that

sort

probable

However.

any

don't

that

stocks

think

ment that

interest

today's

rate

would

addition

risk

holds

involved

]

offer to sell nor a solicitation of offers to buy
The offering is made only hy the Prospectus.

any

that

low

due

and

interest

rates

rate

has

been

might

rates

that

the

Canada

best

■

Goodwyn & Olds

Jones, Kreeger & Hewitt

Francis I. duPont & Co.

First Securities Corporation

Anoiher*: fact

remember

can't

direction too quickly.
the present Administra¬

;rent control, and
-about that.. v
'#•

•

:that

Robinson and Lukens

Rouse, Brewer & Becker

Stirling, Morris & Bousman

FI. P. Wood & Co.

Byllesby and Company

the

when

period

prices still going up on
things. Many economists of

that period referred to those years
as the period of "profitless pros¬

getting into

at the

squeeze

that

some sort of a

time,

nresent

are

similar

it does,

limit

new

it is going to tend
productive capacity.

We have another factor that
had

current

time:

this

many. years
a

the

for

first

time

that

world-wide

long

for

have

weakness

commodity prices. Throughout the
world, commodities have been
weak

come

through. In most

prices

the period we

have been

most

have just
cases,

the

basic commodities

falling.

happy

am very

also

said

v-f
*

number/ of

on this platform that in my
opinion 4the best tond the onlyfor high prices is high prices,
,

and

that,, rent

and price control
always continues and perpetuates
the very condition that it tries to
"

correct. In other words, whenever

the

set

you

below

the

would

The

shrink

the

that

shortage.

the

certainly

fact that

prevented

rent

houses

for

1940

and for

the

total

find

houses

the

control

being

United

Look

census

will

the

had an ef¬
housing field. Wc often

fect in the

ignore

supply,

and
problem
supply- and you

solve

intensify the

Now

price

because the de¬

the-

exceeded

always

rent.

price

the

reason

up was

order

has

that

production out of

some

going

mand

you

i. anything

that

otherwise be, you immedi¬

market.

was

price

level

ately take
the

ttmt

profits are shrinking; and as we go
on, that shrinkage will continue,

have

perity.";.

faced

C. T. Williams & Company, Inc.

fall¬

were

..."

times

the late

profits

great

C. F. Cassell & Co., Inc.

think

■

cure

running

now

and

••many

haven't

our

think

States

/quite important is that profits are
falling. Some of you, -the ' older
ones'herd in- the-audience, will

and

U-S

think

The first thing that will happen,
think, is that all price controls
pass out by April — all of
them, in my opinion, including

and on larger homes 5%.

:or .more,

v
.

Durham, N. C.

March 17, 1953

certain momentum

will

on the West
Coast, in many areas,
;ori-smaller homes, mortgages in-

ing

Rohrbaugh and Company

place,

interest

at'. .6%,-

are

Now it.seems to

Courts & Co.

1954?

first

is thoroughly aware of that
point. I think it is going to apply
the brakes very slowly and very
carefully.

■higher,. Even in the United

Scott, Horner & Mason, Inc.

(Incorporated)

this

in the United States and
I

Rates

interested

J;homes

twenties

Incorporated

period.

war

and

the

change

artificially low
'• r5."

;

You

....

may

H. M.

the

with

have attained

are

been held down at

Johnston, Lemon & Co.

Blair, Rollins & Co.

family formation

the very low birth rate
had during the depression

1953

thing to curb a boom. They should
^have.gone up lone ago. Th^.v have

be obtained from the undersigned only in such States where the
r:4/<
legally ofper these Securities in compliance withjhe securities laws thereof.'
-

Boyce

that

situation, these
possibilities before Mr. Eisen¬
hower, what are we going to do

and

trest .rates1: are

Stein Bros. &

Eisenhower

two

Mason-Hagan, Inc.

rate

Now

going up,
rule in the past, a rising

^knowing

Mackall & Coe

the

tion

•

Ferris & Company

nothing

rate

costs

money

Interest

Auchincloss, Parker & Redpath

that

or
anybody else
anything about. Our pres¬

ent

something to collect
to keep it con¬
stantly invested.
the

levels.

may

come

we
particularly in mort¬
at the high peak of period. The very rapid increase
we are
today's prices, and then, too, it
going to get there in the
has necessarily a loading for the sixties is due to the high birth

Common Stock

undersigned

just

made

gages

of these securities.

INC.

Copies of the Prospectus

than

Administration

liquidity. When you invest
in a real estate mort¬
gage, it is invested and it stays
invested for a long time.
Then,
the last factor,
of course, in a
mortgage interest rate is the fact

Hot Shoppes

Price $10.25 per

coming
least

greater

have

there

that

Expect Higher Interest

Pair Value $1 per

boom

be at

probably

factor

can

mortgages,

controlled.

229,880 Shares

period of the
estate,. boom, and

;

Now,

lack of

and
boom

last

your money

This advertisement is neither

the

time would

through.

mortgage

real

;;

riskless invest¬

liquid,

the

are

pay

that

great

that is
with the

out

man

was

loading for

believe the prob¬

great.

that

interest

pure

am-

Starting

up.

amount

might

quite frankly that I
I

built

this

you

big

I predicted

year ago

that-the real estate
at

talking

are 1

would

increase in pure

thoughtful, careful economists,; talking
who

that

five months.

The Real Estate Boom
I believe

interest.
Now

who,,are

four

had

ever

90-day

come

have

time in the past.

any

would

very

might do

1928

size, we won't
advantage that we have ability
same

realize

not

it did from' Treasury bills of the United States
interest
those
October, ,1929;],, Government, the
We might just go into
^ri^explo^ Treasury, bills pay has increased
sive boom. If we do, the collapse by one-third in a period now of
about

in the years of the past

words,

that

crease

see

somewhat similar amount, prob¬

ably

had

;

going to

by the time
Wenzlick

1951

year

the chances

when

why

Canada

poor may

1952, the year we have
-through, that had in¬

come

investment/It is certainly true :on
market. It is impossible

been

be rather

spent

the stock

have

many

the

defense. In

the

true

the
so

can

the stock

market. I have been in many

parts

expecting the last half

are

States,

other

sharp movement at

chart,

of all

field

thing that everybody expects
happen rarely happens.
That

long
result, stock

time at all.

happen¬

words,

it
a

data

place,

entire

going
prevent it

and

the

rising have had as few
be a pretty good year for business.
persons reaching
conservative in that short period, now for some time, particularly
marriageable age as we will have
Let's look at some specific rea¬
and the very fact that we have, during the past six months, and
in that year. Then we start with
sons
and some of the particular
has
increased
the
optimism
of I think interest rates are going a
very rapid acceleration of the
problems that we have at the
many investors to the point where to continue to rise. Rising interest
number of persons
reaching mar¬
present time. In the first place, I think there is a
rates, as a rule- would tend to
slight possibility.we
have
been
increasing the of a rather explosive boom, and stop a boom. Those of us that riageable age, and in the middle
sixties and the late sixties we are
amount we have
been spending I
think a boom of that sort would might not watch the interest-rate
going to have the most rapid irjon defense at a rather
rapid rate. be disastrous.
picture quite so closely as others

that

nomic

possibility of an irrational
and rather explosive boom on the

year may stand up pretty
and to me it seems rather
inconceivable that 1953 would not

the

fact

The

1954.

well,

the

opinion,

discounting

occurs,

have

you

the

are

last half of the
year.

people

look

for

start

before

of the year to
be one reason

many

saying,

people

So I think the fact that

forecasters

out

going
going to

the

collapse
know

are

is quite different than the acceler¬
ation we have

constantly had.

through

the

1953

first

the

things that they are going to have
to watch during 1953 and possibly

shrinking profits, and looks for complete elimination of
controls by April. Considers real estate boom is
passing.

say for
have some

that

falling. They will still be at
pretty high rate, but they are
going to be falling. A falling rate

market, production, in¬
I
think
that
Mr.
Eisenhower come per capita, real estate values,
and his Administration have two almost
anything you want to

with

that

Two Developments to Watch

explosive boom in stock market," and, in opposite direction,
possible "disastrous deflation." Predicts rising interest rates,

fact

the

out.

spending but also getting

effect

going to be higher than the level
in the past.

"an irrational and rather

are

The next factor is that in the
period ahead, particularly by
1955,
defense expenditures are
going to

there is

Or Disastrous Deflation Ahead?

Thursday, March 19, 1953

for

States

1950. You

number

rented and for rent in the

United States in both years. Then
you

take the total number
housing accommodations

can

new

have built and add that to the

'40
ber

figure
we

find

should

out

have

the

had

num¬

'50.

You will find this: In 1950 we had
one

and

half

million

fewer

Volume 177

Number 5204

The Commercial and Financial Chronicle

...

(1219)

places
than

either
had

the

rented

fact., that

verted

built

and

the

who

were

„

services, and whenever that hap¬

•

hold them

lies largely

partment

and

through the Federal

Reserve, I think

properties

formerly

keep

rented

grown

down-

individual

owned

capital

and you can't

artificially tyith.
price control. Now, in the period :
ahead; through; the Treasury De¬

prices

pens,

con¬

million

answer
that
the

tact

owners

that

half

units in tnat period!

fi I think the

rent

1940, in spite

eight

for

out, and if

going to

are

rather tight rein

that,

turn
to

Canada

has

rapidly than the

have

There

pay.

sons

been

called

rea¬

in Canada.

use

Our

r. In
1927, in an absolutely free
market, when we had no FHA,
no
public housing, 43.9% of all
the housing in the United States

that

built

was

built -in

units

This

year,

last

that

year

there

equity

and

lost

have

was

ahead

gone

work

in the
American .dollar
of

its

get

production,

war

was

worth

and

purchasing

only 52 cents.

all

types of price control

dropped in April.
I think we are going to control
boom

our

trolled,
ment

the

and

should

Treasury

the

con¬

Depart¬

Federal

Reserve

ahead

say

dollar

one

pansicn of
dollar then, at the
prises.
would be worth'
I should

that, and then after

maybe

four

the

short

come

through
of

cause

except

the

Federal

words,

the

real

increase;

Government.

during

have

credit

this

Inother

entire

increased

period
and

currency

circulation

have

have just

the real
has been the policies of the

cause

increasing

think

increase

other

play

the

them

their

slowly
preferred

Canadian

has

ports,

turn

the

But,

for

You

have

estate

than

and I think

play it
and, in my

long swings

real

can't

market

opinion, in the sixties and
ties

the

you

estate

values

seven¬

going

are

higher than they

are

have

that

out

once

dollar,

during

contrary,

within

lived

current

our

well

international

now,

lion

less

services
than

goods

and

pointed

other

that

exports

have

also

managed to
do this in spite of the
large pro¬
portion of our output we were

devoting to expansion of produc¬
tive capacity rather than to cur¬
rent
same

consumption.

period,

During

this

have managed to
devote very substantial resources
to

our

defense program

own

to contributions of defense
our

and

equip¬

allies, without asking

basic

market.

ready

Finally,

that

The

ex¬

been

the

things

we
import
have
fallen
substantially, on average, while
the prices of the things we export
have declined only slightly.

with

main

since

One

Has

would

that

ever,
had

Free

something

strength

the

war,

the

whole.

public
and

also

with
of

and

old

the

have

progressively

moved

towards

liberal

economic

arrange¬

ments

until

to-day we have no
foreign exchange controls, no di¬
rect

restrictions

level of

imports, and

tariffs

which

has

been

steadily reduced since the middle
'thirties.

The

aim

and
year

have achieved

notwith¬

family

allowances
When the
subjected to the

pensions.

was

forces

inflation

Korea,
strict

cies
and

reliance

payments
has

This

The

avoid

United

States,

rect

purchase

either for

issued

di¬

Canada

investment in

the

for

of economic forces without official

Canadian

securities

new

corporations

scale

development of

iron

and

oil

our

ore

resources;
much of it
into the expansion of
base-metal mining operations and

also

went

additions

plant

capacity
in
industry,
these
have played
an

manufacturing
capital

inflows

have

said

period

war

Canadians

high-cost

production

keep the economy flexible
business

their"own

could

men

paid abroad

ing situations.
hope

what

that

contributed

inflow

from

the Canadian dollar.
of

your

own

associated
American

with

that

you

things

the

economy

productivity,
standard

and

with

words, since the end of the
the savings needed to finance
economic
development

war

the

been

early

com¬

capital

however,
that

inflows

still

kinds, mainly

short-term character,

true

the.year 1952 they were
fully offset by capital

outflows of various
of

were,

remains

than

balance

Canada

exporting
scale.

United

capital

Curing

outflows

these

such

forms

that

small

1952

took

repurchase

actually

was

Canadians

capital
as

the

Ca¬

Cumulative Preferred Stock, Series A, 5%

1946

get
In

certain

and

balance

exporter

(#100 Par Value)

within

1947,

capital,

very

Common Stock

large

extended to the

building

foreign

with

foreign

Europe to help them
their feet after the war.

other

such

years,

1951,

teresting

note

It is

passing

in¬

that

these outflows occurred mainly in
response
to the rise in the ex¬

change
went,
for

rate: the higher the rate
the stronger the incentives

these

capital

adjusting

movements.

short-term

Canada

1950

Holders Thereof to Purchase an Aggregate oe

the

150,000 Shares of $5 Par Value

Indeed,

this

and

services

bought

from

other countries out of net receipts
of

foreign

cur

capital

current

earnings.

dicated. this

ment

well

pattern

the

characteristic

current

Growth

surplus

period

where the rate

during

exchange
was

free

this

market
to

move

Foreign

Copies of the Prospectus
undersigned

may

he obtained from the undersigned only in 'such States where the

may

legally offer these Securities in compliance with the securities laws thereof.

Allen &

Company

Canada

Over the

Capital

foreign invest¬

years,

ment in Canada has
grown

end

W. E. Hutton & Co.

Corporation

Quinn & Co.

estimated

Union Securities

to very

large

proportions:

1951

the

over

$9V2

billicn

total

was

billion,

American

was

the

which

ments

1939,
pay¬

foreign investors were
equivalent., on the average, to

22%

Since

9%.
to

our

the

pay

gross

goods
war,

other
a

this

words,

return

Salomon Bros. & Hutzler

proportion

of about

our

the

ability
foreign

Company

Townsend, Dabney & Tyson

Blair, Rollins & Co.

■

Incorporated

■

Auchincloss, Parker & Redpath

Courts & Co.

Sills, Fairman & Harris
Incorporated

William Blair &

services.

average

Russ 8i

Incorporated

earnings from
and

Hirsch & Co.

Schoellkopf, Hutton & Pomeroy, Inc.

$7V4

owned.

the six prewar years ending
our
interest and
dividend

has fallen

balance

achieved in 1952.

brought

into

per

current

by foreign invest¬

$100

plus accrued dividends

cxcharge
have already in¬

past periods of dynamic expansion
than

Price

out

foreign

deficit covered

exports

anism

Common Stock)

bal¬

was

(Entitling

and

abroad,

probably the principal mech¬
by which demand for, and
supply cf, Canadian doRars were

was

Subscription Warrants

heavy importer of capital
paying for gooes

from

currency

commerce.

attached

Kingdom and the countries

the

part of Canadians,
and various other types of shortterm
capital outflows connected

are

expiring April 1, 1957

nadian securities held abroad, the

abroad

which

sub¬

Western

ance

Valuable and important as these

long-term

itself.

such

official cedits

by the
panies.

Canadian

from

mainly because of the

smaller

provided

country

years,

put
up
equity
for new enterprises re¬
quiring larger sums for their de¬
velopment than could be handled
money

Company of New Mexico

Canada's

net

Public Service

other

stantial

corporations

countries.

30,000 Shares

or re¬

the

March 19, 1953

Company

its great
high

the
so

fact

many

cheaply than others.

sums

into Can¬

the

your

and
produce

Continued

government

often

size

living,

can

The strength

currency

NEW ISSUE

under¬

standing of the recent strength of

is neither an offer to sell nor a solicitation of an offer to buy
of these Securities. The offer is made only by the Prospectus.

post¬

than offset

capital

other

was

the part of American

the

said

have

your

play

the

total

Canada

for

make

adjustments to chang¬

ensure

whole

ada

the money
has been enterprise,
imagination and know-how
a
willingness to take risks and the
long view — and in some cases

ability

invested, loaned

have

that

important part in helping to de¬
velop our resources.
Joined
to

—

normal

except
orderly conditions.

and

pub ic bodies. Much of this
capital inflow went into the large-

the

response

intervention

purpose

encouraging

announcement

any

the

was

and

position.

been

that

war

placed on
monetary poli¬
to
keep inflation in check
safeguard
our
balance
of
fiscal

Continued from page 13

The Canadian Dollar

defense
security

social

following the outbreak of

period

fiscal

growth of

age

economy

has

years

the

for

surplus,

such

world-wide

1952 and indeed

recent

cur¬

every

expenditures
on

measures

pay¬

postwar

have

foreign

enormous

standing the

and

think, how¬

balance

our

ments position in
over

Economy

Canadians

dollar

appropriate

instruments

budgetary

inefficient
Canada

Canadian

at an

direct
controls, been
monetary policies. In

overseas

prices

the

years

general handling of our domestic
situation have, in the absence of

time

have

the

situa¬

rencies."

large,
a

the

relationship

abun¬

come

was

economic

maintain

over

grain crops, which

have

there

lucky

and

keep

in reasonable bal¬
with the outside world and

ance

food¬

exceptionally

which

countries

from

services.

out

ment to

considerably higher.

from
earned

the

our

domestic

our

tion to

We have also been lucky
been

when

imports of goods and

be¬
to enjoy
us,

cheaply

last two

our

and

1952
this
strength was not,
in
fact, based on any net inflow of
capital from outside Canada. On

the
1

pointed

con¬

and essential raw materials

dantly.

recent

for

enabled

produce

have
to

has

especially

stuffs

enter-

fortunate

brisk demand for

very

in
now

and

good
management of
The high level of em¬

been

cause

income, spending about $1-50 mil¬
can

going

are

rule

real

that fashion.
for

dollars

in value.

hand,

and

goods

ing real estate at the present time,
getting out, getting into dollars,

faster

increased

going

swings, I might advise sell¬

for

years,

down in value again.
That being the
case, if you
play the real estate market

gotten

blame

i I

period

five

dollar

because I

the

many

earnings

policy,
as
stated
in
December
1951, by the Minister of Finance,
is to rely "on the general handling

our

ployment
and
income
in
the
United States and other countries

increased

System. You know everybody has
prices in the period

foreign

opinion,- in the period" again to the reasons for the
strength of the Canadian
the dollar is going to in-

•

think

the

because

has

one

time

present

thoroughly familiar
will be

effectively

And

Now, if we make our base. to reinvest a
portion of their
1935-39, the period just, preceding Canadian
earnings in further ex-

and I think
the Eisenhower: Administration is
with that fact.

compete

world- markets.

has- investors

insurance, about 3% of our crease in value. I think your 52hoysing was built for rent. You cent dollar is going to go up, prob¬
can't artificially control the
price ably to 55, 56, 57 cents, something
and

could

and

Canadians.

exchange return we have been
past' 100' called
upon
to make to foreign

words,

the

for the

100

today

than- 19 cents..

four-fifths

the

been

not

worth

was

dollar

power.

practically no
they wouldn't

had

1850

your

little

other

years,

was

actually for rent.
of all the housing

where

lic housing and if
you exclude the
large projects insured by the FHA
where

then

worth

have built, if you exclude
pub¬

dollar

cents,

partly
in
good
luck
and
partly, one
would like to
think, in the hard

the

•

How

within

I suppose the answer lies

rent

period.

lived

strong dollar in
spite of these heavy demands on
our
economy?

capacity

we are not

friends.

have

tinued to have

going to pay has grown rapidly because
control insisted* to
have the ; difficulty
that we so much of the capital we in¬
they would not rent those build¬ have had
constantly of the dollar! vested was used to build
up our
ings, and people who couldn't going down in value."
V
export capacity,
directly or inget building tor rent bought them If you start out in 1850 and
say
ciirecly, in industries in which
during that
because

receiving mutual aid from

American

international

this, both of which sug¬
gest that these large amounts of
foreign capital have been put

our

that

upon

two main

are

for

re-

for

credit,. good

invested
more,

page

The Commercial and Financial Chronicle..
.Thursday, March 19, 1953

(1220)

Continued

jrom

nancial

restrictions

tion

obviously

and

ever,

im¬

bought

aid and by means of im¬

port

them. This means
that
you
don't have to worry
portant respects from yours.
We are, after ail, a nation of about
finding
the
foreign
ex¬
less than 15 million people living change to pay for your imports
or
meet your
on the southern fringes of a vast
other obligations
sub-arctic area.
It is true that toward foreigners when you are
Our situation differs in many

from

anxious

friends abroad are

our

stand

their

competitive
efforts—that is through increasing
their

own

their dollar earnings.

ada

would

We in Can¬
do

them

see

this, not only because of
also

Man for man, our work¬

hand, is a large net inter¬
national debtor, in the sense tnat

ing force is not nearly so well
provided with machinery and cap¬

large sums of foreign capital are
invested in our country.
Canada

achieving balance through import

but

resources,

nearly

yours.

varied

they

are

accessible

ital

equipment as yours.
Con¬
sequently, you still outproduce us
substantially on a per capita basis:
in 1952, our national output per
head

about

$1,600,
while
yours was about $2,200.
And on
account of the sparseness of our
population and the difficult physi¬
cal characteristics of our country,
the

was

overhead

involved

costs

simply keeping the economy going
weigh proportionately more
heavily on us than they do on
There

you.

is therefore

even

greater difference than the figures
I

have

just

referred

would

suggest between the output really
available to Canadians and Amer¬

icans to
The

dispose of

relative

domestic

character

make

sources

pendent

and

market

specialized

they choose.

smallness

our

United States.

overall

de¬

commercial

because

financial

and

the part of the major

This is not only
de¬

ourselves

are

which

a very heavy
reduction in our
standard of living.
Instead, we
have learned to make the most

rive from

between

ure

trade.

de¬

countries

Though

restriction

free

trade

countries

two

our

means

efficiently and using the proceeds

all

use

liberal system of in¬

ternational

by concentrating
on
the production for export of
the things we can produce most

year.

the very impressive fig¬

reached
of

well

over

billion

last

buy from other countries the
things we would find it very ex¬

We bought goods from your
country worth $3 billion, and you
bought goods from us worth $2.3

pensive to produce ourselves. This

billion.

reflected

exported

output

over

the

fact

24% of

1952

and

that

spent

tional
and

outlay

for exports

imports.
fore

Our

much

and

economy

another

stronger

extensive

foreign

chances

said

val¬

the

been

Since

financial

States

smaller

for

Canadians

unprecedented

United

end

has

for
a

fort

along

fresh

these

lines

she

has

end

offer

securities.

you

can

that

sure

Canadians

thing

—

continue

one

will

way

deserve

confidence

and

the

Town Hall series is

has

which

neighborly

year

friends

our

helped

Blyfh & Co., Inc.

nor

offered

>"""

March

19. 1953

the

touched.
progress

the New York

been

Stock

Trading

Exchange,

that there

fell 24%

slight

gain

the

Ex¬

change's

gross

Keith

Funston

$9,162,704 in

However, total

in¬

expenses

creased to

volume

the

report

in 1950.

With 2,788,183,108 shares

listed at the year-end—the highest
on record—the ratio of volume to
listed shares dropped to 13%—one ,
the smallest in the Exchange's

fact

23% in 1950.

the

that

the

Exchange

took

nationwide operation of the

over

ticker

system, which boosted tele¬
phone and telegraph expenses to
$443,483 from $112,081. This added
expense, however, was more than
offset by an increase in ticker in¬
to $1,040,851 from

come

$431,204.

"Barriers which in recent years
have blocked the
Exchange from

keeping
the

"have been
to

cern

they

the

concern

public,

with

Mr. Funston

these problems,
pointed out, six ma¬

jor

cope

studies

operations

Stock

1951

issues

increased

958

face

value of $2,674,000,000 were

"A rise in the number of listed

the

largest

1946,"

Mr.

total

Funston

mented, "reflected largely the ef¬
of present Federal tax poli¬
A pernicious effect of pres¬

fect

cies.
ent

taxes, particularly the excess
profits tax, makes it profitable for
corporation to raise money by

Exchange
during the borrowing rather than through the
sale of equity shares."
analyses
will
be

translated into action

Dividends

during 1953,

he declared.

stocks listed

paid

common

the Exchange in¬

creased

1.8% over the previous
ultimate aim," Mr. Fun¬
asserted, "cannot be repeated year's total. 91% of all listed com¬
mon
stocks paid
often:
dividends last
Public ownership of
year; based on year-end
prices
means of production; a nation

"Our

1952 disbursements, the aver¬
yield of these stocks was 6%.
6.5% a year

nation in whose
material wealth every citizen has
vested interest through equity

and

This compared with

ownership."

earlier.

ideal

industry,

age

Mr. Funston noted

public ownership
the Stock Exchange

added,
of

"is

not

en¬

socialism

na¬

increasing

willingness by listed companies to

cooperate with the educational ef¬
forts of the Exchange. Seventeen

companies, he said, agreed to pub¬
lish

people

housewives,
can

own

factory
workers,
farmers, lawyers —

—

share in

business

en¬

That is democratic capi¬

terprise.

It is

our

job to help make

quarterly earnings in lieu of

less

frequent

merly.
all

listed

reports

the

companies

for¬
88% of

made

year-end

were

Mr.

Funston

opinion
T.Henry Boyd

With Barham & Co.

said

surveys

that public
have shown that

(Special

to The

Financial Chronicle)

Reginald M. Schmidt

CORAL GABLES, Fla.—George
Exchange
has made
great
progress in informing the public G. Schorr is now affiliated witfi
about

Blyth

Co.,

Inc.,
14
Wall
Street, New York City, announced
(March

Boyd,

Vice-President,

inald

19)

that

some

the

the basic elements

investment

process—such

and

Co., 2207 Ponce de

NEW ISSUE

Reg¬

Schmidt, Vice-President

nicipal department of the

Barham

Leon Boulevard.

Henry

and

have been elected to its board

This advertisement is neither
to

buy

any

offer to sell

nor a

solicitation of offers

of these shares. The offering is made only by the offering

circular.
THESE SECURITIES ARE OFFERED AS A SPECULATION

...

corpo¬

300,000 SHARES

Debentures, Due April 1, 1958

(Special to The Financial

Van

ciated
111

CITY,

Hoozer has

with

Chronicle)

Mo.—Thomas
become

Offering

signed only in such

Circular

States

may

where

the

obtained

undersigned

from
may

these securities in compliance with the
securities

the

under¬

legally offer

laws

thereof.

Gearhart & Otis, Inc.
45 Nassau

White & Company
506 Olive

Street, St. Louis 1

Street, members of

Exchanges. Mr. Van Hoozer was
formerly Vice-President of Prugh,
&

Land, Inc.

Erickson Perkins Admits

PRICE

N. Y.—Erickson
Perkins & Co., Powers
Building,

McCoy & Willard
Street, Boston 10

members of the New

Exchange,

Lawrence

April

York

STOCK

$1.00 PER SHARE

Copies of the Offering Circular
may

he obtained from the undersigned

WEBER-MILLICAN

CO.

UNDERWRITER

ROCHESTER,

Street, New York 5

30 Federal

COMMON

Uhlmann & Latshaw,

West 10th

Combest

OF AMERICA INC

asso¬

the New York and Midwest Stock
the

FAMOUS FOODS

Uhlmann ( Labium
H.

the

KANSAS

Copies

basis.

quarterly reporting

it work."

T. H. Van Hoozer With

100%

since
com¬

tionalization but the hope that all

Electronics, Inc.

Price

added.

$200,000

Five Year 6% Convertible

and

made

were

These

the year-end from 918 at the end
of 1951, as 71 bond issues with a

May,

industry and the government."
To

bond

bonds

deep con¬
at the Exchange—and

18%

Bond volume fell to $772,875,640, face value, from $824,002,920
in the preceding year and $1,112,425,170 in 1950. The total of listed

matter of

should

history—from

with the growth of
Mr. Funston said,

pace

country,"

ration.

Arcturus

Stock

disclosed,

to 337,805,179 shares last

$8,239,811 from $7,912,The higher expenses reflected

ston

that
has

from 443,504,076 in 1951, and
compared with 524,799,621 shares

—$9,163,199 against

515.

—

year

income in 1952

1951.

though,

say,

good progress

made."

Ex¬

was

—

change, stated
a

The lack of infor¬

the

directors. Both Mr. Boyd and Mr.
Schmidt are engaged in the mu¬

speculation

that
story

our

country at large," he added.

Funston,

dorsement

world

offering is made only by the Offering Circular.

imply

large and important segments of
population we have not

Keith

The

mean

of share owners; a

abroad

maintain

not

President of

too

scale

are

pre¬

vious.

the

Boyd, Schmidt Dirs.

have communicated

mation is great; our task is a big
and
continuing one. There are

this

expression.

the

has helped in the

The

These securities

esteem

$326,9 82

year.

try to manage their affairs in such
a

repre¬

rewards

"Far from it.

talism.

sell

Cana¬

dian friends. At all events I think

today
an

would

your

much

proportionate

matter of record only and is neither
solicitation of offers to buy any of these

appears

ef¬

scale from the

(and

but

Canada)

and

the

assistance

otherwise have been possible.

constructive

warmly supported by

trade at higher levels than would

This

have
believe

they

years.

and

now

are

than

many

that

liberal

realize

than

substantial

and

to the

risks

im¬

many years consistently sold more
countries

making

towards

that the

case

arrangements

from

you

about

promising

cheaply than

be obvious to

well be the

ex¬

obtain

people.

recovery

others

increasingly recognized, and

may

prosperity is intimately
up with the prosperity of

war,

invest¬

States

also

its

for

has

fact

the

sents,

profit

President

the

$23 billion. More¬

United

market

This

net

our

from

the

been

countries.

with

pares

1951 to $37 billion—and enormous

over,

large

enables each of
not only to enjoy

have

gold

reserves of

all

stock

com¬

that

other

than

Your

ments—amounting at the

bound

country
is
the
world's largest net creditor, with
very

all bene¬

which

eco¬

which is shared

one

ownership, the Stock Ex¬
change as a national market place.

that

important

position

fit, is clearly

what

Exchange for the year
1952, released on March 17, indi¬
cated a net profit for the
year of
$ 1 5 7,0 1 2,

ada

respect in which the United States
Canada.

York Stock

portance of foreign trade to Can¬

what

there¬

—

the

weakens

—

from which

sources

produce them itself.

It will

for

This

customer.

imports

it could

were

susceptible
developments than is yours.
There

but

ports
uable

each

fact,

trade

countries

goods

are,

profitable

comparable

The

best

way

our

na¬

figures for the United States

only 5%

two

cor¬

imported

services.

our

responding percentage of

other's

national

our

alternative

and

progress

ample evi¬

nomic structure of the free world,

trading

efficient

the

and

greatest difficulty and at the cost

situation

nation,

the

restrictions

in¬
but

our

trading
there

that

dence

ization

foolish

markets

export

resources

because

but
also because we attach great im¬
portance to the benefits of special¬
pendent

enough to try to be self-sufficient,
we
could only do so with the

our

terests

damaging both to the re¬
tional
current
transactions.
In stricting countries and to those
framing our policies, therefore, whose exports are restricted. To
we must always take our balance
achieve
balance through an in¬
of payments position into account. crease in dollar earnings requires
Because of our great depend¬ that the countries now short of
ence
on
foreign trade we are dollars
pursue
policies
which
vitally affected by developments make their export goods available
outside Canada.
We have very at competitive prices. It also re¬
important economic ties not only quires that American commercial
with the United States but also policies be of a character which
with the
United Kingdom and permits competition to result in
other sterling area countries and foreign countries increasing their
with
Western
Europe.
We are earnings of the dollars they need
vitally interested in the mainte¬ to pay for your exports. The re¬
nance of a high level of economic
sponsibility for maintaining a high
activity in the United States and level of world trade, and with it
elsewhere and in the pursuit of the efficient use of economic re¬

trading nations.

re¬

were

normally have a large
surplus in her interna¬

policies

foreign trade than the

not

uoes

liberal

our

rather

much

the

other

The Annual Report of the New

own

feet and to balance their accounts

through

Net profit was $157,012 as compared with $326,982 in 1951.
Loss ascribed to higher operating expenses.

discrimina¬
go on for

and

cannot

considering Wi.ai policies to adopt
in world affairs. Canada, on the

natural
not

substantial

valuable and

have

NYSE Reveals Lower Profit Made in 1952

massive injections of fi¬

tnrough

The Canadian Dollar

balance

achieving

process

page

Members, Notionol Association of Securities Dealers, Inc.

Stock

will admit

50 BROADWAY

NEW YORK 4, N. Y.

BOwling Green 9-6162

Wagner to partner-

Volume 177

Number 5204,*,The Commercial and Financial Chronicle

THOUGHTS
It's four o'clock

in the morning, and all the

World's asleep.
Bui

man's head shifts upon his pillow.
again at the green-glow of the dial on
Ins alarm dock. He hears the plaintive whistle of

one

train somewhere in the distance, and the murmur

of the wind in the trees.

They seem to echo his

AM.

war

fire

peace,

flood... life in¬

payrolls, contribute materially to the highest living
standards known to

is every man's "best buy."

They also realize that the dollars they pay in
premiums for their life insurance do more than
just provide protection for their families... be¬
cause

these

large

measure

The

"What will happen to Janie and the children
If anything happens to me? How can I be sure

and

figures or not,
Equitable's 1952 financial statement testifies

The

to America's

premium-dollars contribute in
to the overall security of their

faith in life insurance

of providing for one's

means

same

self...protection that lets
4 A.M.-or any

While

thoughts that will not let him sleep.

"To be

sure

man

your

a year.

picture above

family will be

secure,

Equitable representative today. He is

maintain millions of people on

your

the basic

sleep soundly at

a man

in the

family and for one's

hour-365 nights

So...to the

earning interest for the members of

Society, these premium-dollars build railroads
factories, finance homes, participate in a score

of industries, help

man.

Whether you are interested in

country.

thoughts.
The

deflation,

(1221)

mm..

at 4

surance

He looks

■

we say,

call your

telephone."

they'll be secure?"
His mind flashes back to the terrifying moment
a

week ago

when a truck shot out of a side road
without warning. If he hadn't been able to swerve
his

car

just in the nick of time... what then?

stories he'd read-and all the things that had hap¬

pened to other people. Things that could have
happened to him.
"Am I getting morbid," he wonders,.or am

being realistic? At

any rate,

it's high time I stopped

just thinking about my family's future and started
doing something about it.
"
What

can

110,507,345
10,645,337

U. S. Government

Preferred and guaranteed

1,153,505,556
226,032,496
11,401,221

(17.5)
( 3.4)
( 0.2)

171,634,074

( 2.6)
( 0.1)

stocks

Common stocks

payments under insur¬
annuity contracts in force.. $ 5,378,522,180
Held on deposit for policyholders and
beneficiaries
349,336,379
Dividends and annuities left on deposit
with the Society at interest
166,143,981
Policy claims in process of payment,
33,336,365
Premiums paid in advance by policyill
holders
88,298,369
Dividends due and unpaid to policyholders
7,259,663

Mortgages and Real Estate
Residential and business mortgages...
Farm

mortgages

Home and branch office

Housing

developments

buildings

and

other

entirely

up to

him... his personal de¬

cision.
But there

the

are

millions of family men among

Assurance

Society

who have

faced

this

same

They realize that regardless of inflation

THE

December

( 5.3)
( 2.5)
( 0.5)

( 1.3)

( 0.1)

distribution

86,451,088

( 1.3)

23,990,000

( 0,4)

12,552,044
30,579,957

( 0.2)
( 0.5)

0.8)
Surplus Funds

( 0-8)

(100.0)

Total

all

cover

contingencies

395,224,468

( 6.0)

% 6,571,694,494

(100.0)

public authoritiei.

of law all bond* subject to amortization are stated at their amortized value and ail other bonds and stocks are vetoed at the market quotations on
the National Association of Insurance Commissioners. In addition, as required, a security, valuation reserve is included among the liabilities.

31. 1952, as prescribed by

EQUITABLE Life Assurance
■i

for

.......

Taxes-federal, state and other.
Expenses accrued, unearned interest and
other obligations
Security valuation reserve

1-3)
1.7)
2.4)

? 6,571,694,494

In accordance with requirement#

dividends

(81.9)

Other Liabilities

54,604,742

and other assets.

•Including $6,255,866 on deposit with

problem...and who have done something about it!

(
(
(
(

86,638,650

109,502,039
157,551,536
51,651,972

Transportation equipment
Loans to policyholders
Premiums in process of collection
Interest and rentals due and accrued

Total

during 1953

Cash

5,500,000 members of The Equitable Life

and

Allotted

real
3,431,133

Per Cent

future

cover

ance

237,898,549

Other bonds

Other Assets

That's

of December 31, 1952

Policyholders' Funds

( 8.8)
2.8)
12.5)
-8)
(30.8)
( 3.6)
( 1.7)
( 0.2)

578,532,808
181,102,341
824,100,327
578,908,245
2,024,046,123

obligations
Dominion of Canada obligations
Public utility bonds
Railroad obligations
Industrial obligations

estate purchased for investment....
Residential and business properties...

he do?

OBLIGATIONS
Per Cent

^onds and Stocks

He recalls friends he'd known and newspaper

Condensed Statement off Condition
RESOURCES

i;'tfv

HOME

i? lie

•,

OFFICE:

393

;

SEVENTH AVENUE,

•

NEW YORK

N. Ye

■

States
••••

Financial Chronicle

The Commercial and

Thursday, March 19, 1953

...

(1222)

British Concern Over U. S. Outlook
commenting

defense

the
has

been

should

dence

Eritain

zles many

Eng.—There is evi¬
growing concern in
the possibilities of a

LONDON,
a

over

trade

United

the

Immediate

situation

which

regarded

lor

widely

that

felt
the

drive

pleted

ruption
if

com¬

two

the

might

Dr. Paul Einzig '

easily

long-deferred

postwar
by

are

since

Ever

the

slump.

end

the

take it for granted that

there
sion

war

the

first

that

assumed

Franco-Prussian

followed

absence

the

cline before
There

aiming

bound

War

are

depressions.

States

after

expenditure

re¬

long.

very

remains,

easily

might

but

effective,

increase

gradual

would

body

the
of

know

itself will be ca¬

whether this in

pable of preventing a slump when

puz-

give

consideration

this

ment of

the

goods

which

States

tion

been

has

and

po.rt

tions saturation point

much

decline

the

concern

demand

this

coincide

assumption
is
since the

This

proached.
causing

would

kept

countries
There

that

however,

pect,

American investor

pared

amount
and

period
(194151),
close to
$82.5
billion.
(See table

to make

the

either

the

be pre¬

develop¬

such

fundamental difference

conditions

to the situation. World

such

encourage

Canada

Latin

extent

expenditure

velopment

the

total

the de¬

resources

other countries is not
than

countries.

American

conceivable

American

ex¬

possibly

and

likely to be

fraction of the figure

representing the decline of arms
expenditure and of private de¬

$27,308,828

substantially larger than net

was

income for 1951.
For

the

common

first

slock,

consecutive

the

year,

the

rale

1931,

dividend

of 75 cents

paid

down

net

only 1.93

semi-dur¬

and

able goods.

Of the total advanced,

paid

was

cents

immensity

for the

revenues

year

dropped by 1.91%,'
down by

expenses

owned by American

were

carried

income, compared with 4.24 cents in 1951 and with

mand

the

such

scope

Should, however, the

decline of domestic de¬

for

permanent

1952, exceeded
The

cents

income,

net

out

of each dollar of revenue,

has been the

case

for

industries.
mand

the

absence

financial

for

some years.

and the total

number of employees for the

payroll

cost was

$240,693,550,

year

was

53,732,

average per em¬

ployee of $4,480.
$38,227,183

was

and

during the

year

for improvements and

STATISTICAL

consumers

the

With 15/51

Year

Income:

15)52

transportation

freight,

mail, express
From

other

( + )

solution

ex¬

was

interest,

$424,871,403

$ 7,064,136

—

dicated

the

recently published

report of the Committee for Eco¬

United

States. Although this report aims

primarily at dealing with Britain's
problem in fact it incidently in¬
what

America

can

the British problem.

port

suggests

States

might

larger share

that
have

that

ground

the
to

the

United

assume

Atlantic

program,

this

The Re-,

would

de¬

the
permit

British

dividends,

rents, etc.

during

to be in¬

appears

fense production

passengers,
____

sources

Increasfe

Decrease ( —)

27,280,773

219,544

industry to divert some oP
capacity from military produc¬

its

tion to exports.
Total income

$452,152,196

7,883,680

Payrolls, materials, fuel, services and taxes__$386,361,424
miscellaneous services—

Total expenditures

$15,635,974

38,481,944

404,820

$424,843,308' "—$10,040,800

important

equally

it would

maintain

activity

otherwise

undergo

American

which
a

sharp

mightreces¬

sion.

For

Income:

improvements,

purposes

—

The

ity

sinking

solution

funds and

with

suggested

by the.

other

terest of the
$ 27,308,828

8,157,120

R. B. WHITE, President

the

total

less than 1%%

amount1 of

the

Poland,

Austria,

France,

Rio

Grande

the

United

States

Ecuador and Costa Rica).

esteem

Great Britain ranks first in renow

part

AND

AID

common

cause.

true

face

the

Britain's

share might appear to become un¬

duly low. This depends, ho\yever,
on the basis of comparison.
Owing

very

rather
the

new

high

unfortu¬

AdminCOr-

.j.

thirteen.

the

to hold

istration might endeavor to

part of Poland, and

which

not seem

and which

nate

Estonia
of Russia, bring the total up to

Danzig

advanced

dollars

and Czechoslovakia);
is in Asia (China), and three
in
Latin America
(Bolivia,

to be

the world by

given, the nations south of

Yugoslavia

now

Since

advanced.

judged throughout

STATUS OF RECIPIENTS'

DEBT

Arranged according to size, U. S. aid is distributed
as follows
(in million dollars):
—REPAYMENT—

In % of tol.

Oross Aid

France

$35,913
11,242
6,986

$5,882
33
1,098

16.4
.3
15.7

3,539
3,114
2,631

2,474

Kingdom

United

Amt.

98
185
116
289

2.8
5.9
4.4
11.8

1,403

3.4

Germany

China.

(Nationalist)
Italy
Japan
Greece

None

Repudiated
None

Being Settled
Default
Settled
Settled

Default

138

10.9

Fully Serviced

925

Australia
Austria

♦Status of Debt

1.266

Netherlands

911

98.5

Fully Serviced

4.6

Default

.837

•

„

Philippines
Belgium-Luxembourg

831

2.2

Fully Serviced

829

249

30.0

Fully Serviced

India

791

613

77.5

None

488

2.7

None

465

428

378

6.3

—

Korea

Poland

Yugoslavia
Turkey
Norway

11.5

.252

98 5

.ii

4.4

11.2

168

96.0

312

—

256

Zealand

New

252

Denmark

—

222

175

*•-

156

Canada

«■

3.2

24.1

Indonesia
Finland
Ireland

Default
Default

...

145

—.

139

None

Fully Serviced
None
Int. Paid

Default

Fully Serviced
None

Fully Serviced
Fully Serviced

108

■Union-of So. Africa..

6:5

None

98.9

None

•

the

spirit of the prin¬
ciple of equal sacrifice in the in¬

are

many,

Sweden

CED Report would be in conform¬

Net

during

review totaled

under

not $1,406,000,000,

category.

Czechoslovakia

industrial

Interest, rents and

America

Latin

What
that

Expenditures:

Aid

the^period

Of these,
in Europe (Russia, Ger¬

'thirties.

ease

Comparison

Prom

ineffective

dicates

SURVEY

Russia

de¬

resources

nomic Development in the
spent

equipment.

new

The
average

of Yugoslavia,

true

America's prestige has come

pansionary monetary policy would
Tax accruals of 7.87

being

countries came

this

has

repaid by Ireland; the same

within

State

new

nothing

American gener¬

semi¬

and

materialize,'

goods

producers

cents in 1949.

by the

virtually

Israel,

Eleven1

osity.

other

the

with

interfered

for capital investment in domestic
revenue

made

investors, m-

stitutions and individuals, has

96%.

and Poland.

been

have

sec¬

repayment of any kind

been

obligations sold to and

would reduce the immediate scope

of each dollar of

out

investment.
fears of

efficiency brought operating

countries

cipient

the

followed

981/2%.

with

been

default

United States. Nobody doubts the

per

$10,800,-

about 13% has been
repaid or returned, resulting in
NET foreign aid of $71,600,000,000.
The fact that many of the re¬

are

For the third

4.04%, compared with 1951.
Thus* 6.17

durable

large-scale investment within the

preferred stock.

increased

for

the

was

share.

per

full dividend of $4.00

Railway operating
hut

since

hand,

are

one

mand

There remain the possibilities of
time

Winkler

Max

Dr.

99%

Zealand

with

Canada

has

000,000

Africa has

of aid received. Australia

New

onds

below.)

sufficiently large scale

not

ex¬

11-y

almost

repaying

for
ear

would

finance

ments

American

the

of South

Union

The

proved the most desirable debtor

1940, have cost

the

States Government

United

late

Bill

taxpayer

reason

Germany, China (Na¬

Netherlands.

United

the

cent

per

the

large-scale development of back¬
States.

followed by

tionalist), Italy, Japan, Greece and

result of

one

repaid. France is third,

have been

en¬

with

second

billion of which less

actment of the

activity

industrial

that

tained

the

since

distant

$1114

three-tenths of

than

aid

Lend-L ease

enter¬

are

about

world

the

Union

States

total

the

About 16V2% has been
or
returned. The Soviet

expenditure.
hopes

quarters

repaid

Bank,

aid to the rest

liable

decline

the

with

rearmament

many

is being ap¬

granted.

t-lm-

p o r

43V2%

over

Monetary Fund, and the

United

gard to the extent of aid received,
with almost $36 billion, or well

Development, the Inter¬

national

seven

over

World Bank and

ments in

largely responsible for the boom
is liable to decline. In many direc¬

Net income

net amount of

payer a
'

semi-durable

the enact-

Lend-Lease, American aid has cost the American tax¬

$71.5 billion, exclusive of investExport-Import Bank. Of $82.5 billion lent, only $10.8 billion or about 13% has been repaid.

prolonged

pursue

impunity.

and

operate

business

severe

Dr. Winkler estimates that in 11-year period since

Nevertheless,

United

facing

DR. MAX WINKLER

'
V - V : '
viewed from this
side of the Atlantic it appears that
Exclusive of investments in the
consumers'
demand
for durable International Bank of Reconstruc¬
tive

some

YEAR 1952:

continue

recession.

moderate inflation with compara¬

The

HIGHLIGHTS OF THE

without

Bernard, Winkler & Co., Members, N. Y. Stock Exchange

strength of the country, it is in a

cept

THE BALTIMORE AND OHIO RAILROAD CO.

e c o n o m

large-scale investment abroad

Computation of U. S. Foreign Aid

postwar

the

pursue

unprecedented

are

126TH ANNUAL REPORT

ing to the large gold reserve and
the

get

other hand

Washington Administration to

continue

regard

From this point

itself.

avenge

breathing

and

bound

purpose.

Britain

to regain economic strength
would enable American

space

industries

without

effort

defense

equally within the power of

the

ward

however,

the national income. What every¬

The

1945

expansionary monetary policy

War

major depression in

United

World
wars

war

to an end any

come

and

moment

the Napoleonic

The

armament is also expected to de¬

Because

long period of depres¬

was a

might

prolonged

business
Korea

history is

itself.

repeat

following

Wars,
and

major slump kind
depression.

inclined to

are

influences

these

there would necessarily have been

no means new.

Most people

hound

recon¬

The question is whether

absence

the

they became evident from time to
time.

by the Korean War and rearma¬
ment.

experience the
These fears

for

struction, and the last three years

States

United

War, the
accounted

can

from the
next two years

resulted

World

year

almost without inter¬
is an unusual state of

remember that the first six

years

within

the

years

affairs. But it is not so remarkable

rearmament

would

burden. This

dual

it could be made most

cided upon,

position

Beyond doubt the continuation
of a boom of varying degrees for

fears. What

the "inevitable."

ferred

justification

United

dispropor¬

of the

serve

policy of moderate inflation. Ow¬

might

nothing in the

would

payments

the

that

assume

position is funda¬
mentally improved. Any attempt
at excessive participation in the

out of control. On the

trade

moderate

inevitable

tionate

deflationary drive be de¬

en¬

unless and until the balance

recession
in 1949. Had it not been for the
Korean War and the rearmament
drive that
began in 1950 there
was

States.

There

It is true there

Iron Curtain.

the

both sides of

tribution. This is impossible,, how¬

have been another reces¬
sion, possibly more pronounced.
The
view
is widely
held
that
Korean rearmament have only de¬

recession

severe

people

opinion

should be

1951

mind. For the time being

born in

Common¬

the

States should

ever,

anticipated. The new Administra¬
tion
has
not
yet indicated the
nature of its monetary policy. The
circumstances
are
such
that

production program.

view the lesson of

and

population
of

wealth, American

as
steep

rather

and

sources

titled to expect a substantial con¬

States

United

during recent years, and for this
reason alone a reaction is widely

British fear that the long period of
postwar prosperity in U. S. may come to an end, when no
longer supported by defense outlays, contends recession might
be delayed, if U. S. assumes a larger share in the Atlantic
Dr. Einzig,

elsewhere

By PAUL EINZIG

natural

requirements of war, rearmament
or
reconstruction.
The
rise - in
prices

size

the

operation is not reinforced by

its

-1-

Fully Serviced

Israel

Trieste

4.5

None

13.5

None

Saudi

Arabia

Iran

Portugal
All

others
*

—

29.4

None

Latin American

—

5.9

None

1.406

376

26.7

1.2

•

4,407

Includes only publicly sold dollar

bonds; ** Less than $500,000.

Volume 177

'vk

Number 5204

....

The Commercial and Financial Chronicle

(1223)

ress

Results

Glance

from RCA 1952 Annual Report

1952

f Products

and

Services Sold

Percent increase ovef previous year

■

Profit Before Federal Taxes

1951

$693 941 0007 $598 955 000

15.9%

Income

2.1%

by the Radio Corporation of
during 1952. Industrial activity,
employment, total assets and working capital reached new high levels.

engineering the-year
marked by advances — especially as
to

electronics

of solids

and

4.24

C,"

was

Per

•

re-

one

Income

35 037 000

30 840 000

52.0%

49.7%

2.52

2.22

Percent to profit before Federal taxes

income

common

;

V Net Profit

its developments, the transistor. Televisioncontinued to expand and open new mar¬
kets for TV transmitters and receivers as
well

Total Federal Taxes

„

America

lated

10,4%

4.62

common

was

achieved

In sciertce and

62 033 000

9.7%

Per

An all-time record volume of sales

67 362 000

Percent to products and sefviceS sold

■jV

for program sponsors. Production
for national defense was almost one-half
as

5.2%

2.10

2.02

Preferred Dividends Declared

that of the peak year of World War II.
Foreign trade in electronic equipment in¬

31 193 000

4.7%

•

: Per common share
'

32 325 000

Percent to products and services sold'

3 153 000

Per share

3.50

3 153 000
3.50

creased.

The Annual

Report is

cial statement. It is

than

Common Dividends Declared

finan¬

story of accomplish-

ments

build

by skilled and loyal workers who
fine

products that make

"RCA"

symbol of expert workmanship and de¬
pendability. Their watchword is quality
in design and materials, in engineering,
production, and performance. It is a story
of pioneering in world-wide communica¬
tions and in all phases of radio-television,
from research and engineering to manu¬
facturing and broadcasting.
The
known

communication
as

channels

"radio" have divided into great
new

opportunities not only in radio-television
broadcasting, but in industrial television,
electronic computers and in many other
directions. RCA products and services have
been diversified and expanded beyond the
original concept of radio communications
now

The

include home

RCA

Total Dividends Declared

1.00

17 011 000
■

tin

13 857 000
<

17 010 000

■

*
,

Earnings

for

Year Reinvested

Business

15 314 000

14 183 000

153 299 000

137 985 000

Stockholders' Equity at Year End

202 287 000'

186 973 000

Working Capital at Year End

204 403 000

172 764 000

3.0 to 1

3.1 to 1

26 561 000

26 069 000

11 128 000

11 097 000

115 444 000

101 080 000

64 000

57 657

in the

Reinvested Earnings

December 31

Directors

Ratio of current assets to current liabilities

V " Additions

Depreciation

Net Plant

appliances.

Board

1.00

long

electronic branches that have created

and

13 858 000

Per share

Plant

and

Plant

Equipment

and

Equipment

Year End

and

Management are fully aware of the great
potentialities of electronics in strengthen¬
ing the security of the United States and
maintaining the civilian economy. Fulfill¬
ment of these possibilities is the constant

Number

Employees

Year

A copy

Radio

of the RCA Annual Report for 1952 will be sent upon request. Write
Corporation of America, 30 Rockefeller Plaza, New York 20, N. Y.

aim of RCA. It will continue research and

pioneering. It will contribute its
and

facilities

the

resources

fullest extent to

en¬

able its corps of loyal

BOARD

workers to hold a
leading position in service to the Nation.

DIRECTORS

John Hays Hammond, Jr.

Charles B. Jolliffe

George L. Harrison

Edward F. McGrady

Gano Dunn

Mrs. Douglas Horton

David Sarnoff

Frank M. Folsom

Harry C. Ingles

Lewis L. Strauss

Walter A. Buck

John T. Cahill

Chairman of the

Board

President

RADIO

CORPORATION <yf AM

P/or/d Leader in 'Radio

—

Ri,rsf in Te/ew's/on

i
20

The Commercial and Financial Chronicle...

(1224)

Hall Heads HY Fund

Connecticut Brevities
meeting

annual

their

Treasury Refunding Prospects

Bankers Trust

Division in Campaign

which have been added in the past

Company and Aubrey G. Lanston & Co. discuss
market in light of forthcoming Treasury
refunding operations.

outlook for money

Organizational
planning
was
of 11 years. The company's program
will of conversion to 100% dial opera¬ stepped up in the exchanges field
for The Greater New York Fund's
The Bankers Trust
vote on a recommendation of the tion, begun in 1922, will be com¬
Co.
and
Board of Directors to change the pleted in 1953. There are present¬ 1953 campaign with the accept¬ Aubrey G. Lanston & Co., of New
ance
by Her¬ York City, both dealing in U. S.
par value of the common stock ly 32,400 stockholders, of whom
bert
S.
Hall, Government securities, have is¬
irom $25 to $10 and to issue five 20,000 have acquired their shares
partner of sued papers relating to the out¬
shares of $10 par stock for each during the past four years.

April

stockholders

1953,

23,

Colts Manufacturing Company

The

stock.

$25

80,000 shares will
400,000 shares.

General

Corporation

Dynamics

the refunding operations. According to.
exchanges the Bankers Trust Co., Treasury
group
chair¬ refunding is not expected to upset
manship. The the money markets or produce
announcement
any changes in long- or shortwas
made by term interest
rates, as a whole,

Ltd.,
of England,
the Western
Hemisphere rights to manufacture
ty National Bank of Danielson and sell a controllable pitch pro¬
and of The Hartford-Connecticut peller that it is hoped will revo¬
Trust
Company
have
voted to lutionize many fields of marine
V

the two banks. The former propulsion and will be adaptable
will be operated as the Windham to use with gas turbine engines.
The
propeller, patterened after
County branch of the latter. This
will bring to 14 the number of those used by aircraft, will enable

the Fund's

Stockholders of
National will

County

small
more

craft to

authorities

and

depends

Benjamin

course

will

take

restrictive credit action

largely

the future

upon

dent

the

business

demands for capital are still

ning high.
term

and

credit

simply result in
justment of rates
other

securities,
anticipated

any

vantage

private

greatest contribution to monetary

bonds

run¬

longmight i

upward

ad¬

corporate and

thus

nullifying
competitive ad¬

Treasury

issues.
If
requirements

investment

shouM slacken after the middle of
the year, however, the Treasury
will have

tap

the

better

opportunity ta

market

for

long-term

funds."
Mellon

vs.

Humphrey

Aubrey G. Lanston & Co., Inc.
makes a comparison between the

Treasury refunding problem
cuted

"Debt management can make its

Higher rates

government

further

needs."

HartfordBush
Manufacturing Company
United
States
Connecticut Trust for each share
owned.
Hartford-Connecticut re¬ is constructing a new addition to Trust Company of New York.
its plant in West Hartford which
The Greater New York Fund's
cently offered its stockholders
will
add
15,200 square feet of campaign, which begins April 27,
rights to buy one new share for
The expansion be¬ will help 423 voluntary hospitals
each eight owned of record Jan. 22 floor space.
came necessary as a result of the
and health and welfare services in
at $50 a share.
1.4

receive

1953, and adds that "whether

Strong, Presi¬

Hall

Herbert

the

Chairman

and stop

maneuver

firms

division

efficiently.
*

for

private

merge

Windham

look for the money market in re¬
lation to the forthcoming Treasury

pany,

Shareholders of Windham Coun¬

branches operated.

Stan¬

ley and Com¬

has recently acquired from Rotol,

Morgan

present

become

thus

♦

Thursday, March 19, 195$

Secy.

Andrew

exe¬

Mellon

following World War I and that

confronting
Secretary
of
the
stability under current conditions Treasury
George M. Humphrey.
by working for a better balance In the
analysis of the situation it
in

the

maturity

Federal

distribution

noted that

the

Mellon refund¬

debt,

reducing the ing program was carried out at
size and frequency of refinancing
*
*
*
addition of a new heating line and New York
a time when inflation was shaken
City. Last year, more
operations, and fitting the terms out of the
economy and its success
Hartford Rayon, wholly-owned an increase in the demand for air than 3,000,000 persons benefited
of
Treasury borrowings to the was due in part to the superlative
subsidiary
of
Bigelow - Sanford conditioning and commercial re¬ from services of the Fund's par-, needs of the
economy and
the
frigeration equipment.
understanding of financing tech¬
Carpet
Company,
has resumed
ticipating agencies.
conditions of the market place."
*
*
*
nique and a desire not to inter¬
Mr.
Hall will
be
production at its plant in Rocky
responsible
,

The Bankers Trust review" notes fere
with the business or invest¬
pri¬ that a modest
beginning was made ment markets. It is maintained
partnerships in the in
1952, but that further and much that the
program to improve the company's
forthcoming funding pro¬
exchanges field. This area includes more
intensive efforts are needed.
in operation, has an annual capac¬ position in the hardware industry. the Cotton and
gram can be developed success¬
Commodity Ex¬
'However, the Bank states that fully providing a "sound dollar"
The first step will involve con¬
ity of 10 million pounds of staple
changes;
American
Stock
Ex^ a
struction of a new plant at Clarksrefunding program is not sub¬ is preserved. The Lanston
rayon for the textile trade. A sec¬
analy¬
change; government and munici¬ ject to rigid standards of
proce¬ sis
Miss., for manufacture > of
ond unit of 8 million pounds a dale,
points out that continued fail¬
pal security dealers; investment dure.
Rather, "refunding is among ure ta reduce the
door checks, panic fixtures and
year capacity for the carpet in-;
public debt ins
advisors; *■' investment
bankers;- the most difficult and delicate un->
hose clamps. The second phase of
periods of good business would be
dustry is expected to be in pro¬
Stock
Exchange .floor brokers;
the plan involves consolidation of
dertakings in the realm of debt "the
duction in May. •
grayest threat to. the value
Stock Exchange firms and unlisted
*
*
*
management,
requiring
flexible o£
practically all of the company's
Treasury securities and other
brokers.
•/
action and sensitive response to
other manufacturing operations in
Stockholders of Niles - Bementfixed-income
obligations and a
j A resident of Short Hills, New
changing conditions in the money sound dollar."
Pond Company will vote April 8 a single plant in New Britain. The
1
third step will be consolidation of Jersey, Mr.". Hall Xwas graduated and capital markets."<
'■^
at their annual meeting on a rec¬
from Princeton University in 1928.all New Britain general adminis¬
"The problem faced by the
ommendation of the Board of Di¬
His previous .business affiliations
trative and office functions.
Treasury is to make real inroads
rectors to increase the authorized
include the Guaranty Company, of
*
*
*
upon
the floating debt without
common
stock from 1,000,000 to
New York, Field, Glore and Com¬
provoking serious repercussions
The annual report of Dictaphone
1,500,000 shares.
There are no
pany, and W. E. Hutton and Com¬ in
the economy or the market
present plans for use of the addi¬ Corporation shows that net income
pany, ^
; ■ ■; v v
; place. This seems to rule out fast,
tional shares, but they would be for 1952 dropped slightly to $8.91
Hill after

extended shut down

expansion and modernization.
The first unit, which is presently
for

American Hardware Corporation
has announced a new three-phase

for

solicitation of gifts from

vate firms and

Announces Committee

Apptmts. by NASB

available
deem

from $9.25 the previous year, the
more than accounted
pres¬ for by a decrease in dividends re¬

acquisitions of

for

business which the directors

desirable.

There

any

are

outstanding 868,285 shares, ceived from the English subsidiary.
on which earnings for
1952 were
equal to $5.20 a share against $3.21
the previous year.
ently

The

annual

Bankers Place Notes

compared

smaller

$1.99

number

1951

shares.

Associates

Investment

Co.,

South Bend, Ind., has sold
$10,000,000 of 3%% senior term notes
due

March

During the year the company
spent about $28 million and pres¬

1, 1973. They were
placed privately by Salomon Bros.

ent

estimates

call

for

expendi¬

tures totaling $33 million for plant

expansion.

phones

Some 43,000

ing the

new

tele¬

added in 1952 bring¬

were

total

855,000,

half of

Hutzler

with

companies

and

life

insurance

pension

funds.

Robert L. Oare, Chairman

11th

year.

The issue is the third in
of

EMHART MFG. CO.

three

gram

®A New Circular
♦

concerning

this

growing

Company, which describes its
different

divisions

container

aging

products
able"

cular
year

including

also

"squeez¬
This cir¬

contains

financial

shows

record

increasing

pack¬

plastic

bottles; etc.)

senior

maturity

shall
on

com¬

Funded

average

with

years

$132,500,000.

Total

were

Associates

assets

of
on

year

Dec.

glad

March

Robert

21st.

send

55 WIST MAIN SI.

TIL. 9 2070

refinancing
one

stroke.
re¬

funding program is a long-range
undertaking, whereby the Treas¬
presses

for extension of

ma¬

MaeCorkle, member
turities, but with sufficient flexi¬
Exchange will withdraw
bility to adapt itself to fluctua¬
from partnership in George D. B.
tions in the money and capital
Bonbright & Co. March 31st.
of

the

Edward

markets and to shifts in economic

English

will

retire

from

partnership in Kaufmann,
Alsberg & Co., March 31st.

trends."
Joseph

Welch

Transfer of the

bership

Tanburn
will

the

Exchange mem¬
Stephen'A.

late

Robert

considered

change March 26th.

ury's refunding problems will be
further
the

complicated

need

raise

several

energetic

Stock

Sty*

- rX

C. —Carle

to upset the markets,, Investment Companies Committee

MAPLEWOOD, N. J.—Adrian curtail the supply of funds for
Ralph Kristeller, member of the private
investment,
and
create
York

WASHINGTON,

by Stolle, G. A. Saxton & Co., Inc.,
billion New York City, Chairman of the

McCurdy
dollars in new money. "This, to¬ Board of Governors of the Na¬
the Ex¬
gether with considerations of eco¬ tional Association of Securities
nomic
stability,
diminishes the Dealers, Inc., announces the fol¬
likelihood of a refunding policy so lowing committee appointments:

To Be Parker, Robinson Co.

New

Doolittl#

1953

Exchange, will protracted upward

retire from

bond

pressure

upon

yields."

Chairman: Joseph E. Welch, Ex¬

ecutive

Vice-President,

ton Fund,

Welling¬

Inc., Philadelphia.
Ward

Members:

Bishop,
to the review, "the
President of American Fund Dis¬
could sell a limited
April 1st the firm name will be amount
of long-term bonds if the tributors, Inc., Los Angeles; Hugll
changed to Parker, Robinson &
W. Long, President of Hugh W..
yield were made sufficiently at¬
Company.
tractive to institutional investors, Long & Co., Inc., Elizabeth, N. J.;
and it is expected that such an Harry I. Prankard, II, partner in
With Merrill Lynch Staff
offering will be made later this Lord, Abbett & Co., New York;
"William
F.
Shelley, partner in.
(Special to The Financial Chronicle)
year.
At the present time, how¬
Vance, Sanders & Co., Boston;
SAN FRANCISCO, Calif.—Wil¬ ever, a large offering would prob¬
and S. L. Sholley, partner in Key¬
place
a
strain
upon
the
fred D. Wamsley is with Merrill ably
stone Company of Boston.
Lynch, Pierce, Fenner & Beane, market, especially since private
301 Montgomery Street.
Investment Companies Dealers
According

Treasury

SECURITIES
'

Roy W.

The Bank notes that the Treas¬

Committee

partner

Roy

Doolittle

W. Doolittle,
& Co., Buf¬

;;v

falo, N. Y.

%0>%Sfflp

Primary Markets

CHAS.W. SCRANTON
Members New York Stock

CO.

Exchange

CONNECTICUT

Members:

BRAINARD, JUDD & CO.
75 Pearl Street

HARTFORD, CONN.
New York

—

REctor 2-9377

Hartford 7-2669

Teletype NH 194
TEL. 2-6141

soundly conceived

New Haven

33 LEWIS ST.

undone

Instead,

ury

short-term

years

cannot

Chairman:

request.

aggressive action in favor of a
gradual and measured ap¬
proach. The consequences of many
mose

CONNECTICUT

Eddy Brothers&&
MW8RITAIK

the

$517,000,000.

SECURITIES
HARTFORD

ail

In¬

amounts

subsidiaries

company and

now

dissolved

which

dividend

each

debt

Spencer B. Koch & Co. will be

partnership in Parker,
& Kristeller, 7 High¬
financing.
land Place, on March 31st and on

of 3.58%, Mr. Oare

Co.

five-

1948-1952.

copy

said.

vestment

changes:

Robinson

debt

1214

average yield

£■*--y■■$$$ %

disbursements

since Feb. 10 and

The three issues have

(glass

machinery;

loans

series

pletes the current $30,000,000 pro¬

prepared

$10,000,000

placed by the automobile finance
company

We have

of the

Board, said the notes provide for
a 50%
sinking fund beginning in
the

Weekly Firm Changes
The New York Stock Exchange
has
announced
the
following

Of Associates Inv. Co.

report of Southern

New England Telephone Company
shows
net
income at $2.08 per

New York Stock Exch. ; \

might drop being

partner

7-5291
BELL

NEW

YORK PHONE

Eugene
Shields

Barry,
Co., New-

York; James F. Burns, Jr., part¬
in

Harris, Upham & Co., New
J. Lester Erickson, VicePresident of Wm. R. Staats Co.,
ner

York;

Los
HARTFORD PHONE

Angeles;

partner

Albert W. Tweedy,
C.

Wainwright

HAnover 2-7922

TELETYPE

197

Co., Boston; and Adolph Woolner,
partner
York.

in,. Bache

Co.,

New

Volume 177

Number £204..* The Commercial and Financial Chronicle

(1225)

and

■

Companies

T, '

CONSOLIDATED STATEMENT OF INCOME AND

HIGHLIGHTS

UNDISTRIBUTED EARNINGS EMPLOYED IN THE BUSINESS

From the Company's 1952 Annual Report

For the Years Ended December 31,

Average 5

1952

Years

1952

1951

6.59

Net income per share..

181,242,172

3.00

$1,510,073,199

Sales and Services

1946-1950

paid

per

178,774,677

6.50

3.05

1.88

73,270,922

$1,588,450,141

$1,490,076,744

$1,135,043,368
46,702,254
35,176,058
intangible development costs...
46,741,996
*,
67,768,408

$1,049,195,200
38,900,203

4.73

78,376,942

125,039,553
Operatinc Charges:

48.19

44.39

Amortization of

35.44

Depreciation
Total assets (end of

$1,736,081,000

year)

$1,549,420,985

$1,224,332,068

expenses..

*Taxes (other than income)

Dry hole costs
Net wdrth per share (end of year)

$1,416,805,822

income

Costs, operating, selling and general
Cash dividends

1951

Gross Income:

Dividends, interest and other
Net income

1952 and 1951

Depletion and leases surrendered.

19,307,936
45,080,241

57,084,926

13,601,290

19,335,508

385,699,764

266,906,948

231,127,178

261*74,677

Provision
'«

237,682,549

183*27,178

178,774,677

181*42,172

178,774,677

830,607*42

830,607,242

323,886,973
Interest Charges

Gross crude oil and condensate

$1,223,169,796
$

464,126,528

$1,350,767,592
$

Working capital (end of year)....$

for

6*55*71

Income

47*00,000
137,843,649

144,325,303

.produced (barrels)

1-12,850,964
Minority Interest

Net crude oil and condensate

116,130,101

95,373,759

1,187

1,106

Net Income

Year..,.

for the

Undistributed Earnincs

Employed

in the

534,835,584

214,937,319

209,587,222

162,542,235

179,543,901*

142,622,470

Adjustment incident
Canadian

-Refinery

runs

722,059,377

651,832*65

Add:

192,197,466

by pipe lines (barrels)

716,077,^56

Crude oil and condensate delivered

82,600,000

2,685,006

753

Wells drilled in United States

Subsidiary

Canadian

121,850,572

produced (barrels)

5*32,271

Excess

and

(barrels)

consolidation of

5,981,621

subsidiary

Deduct:
Number of

5,000

ocean-going vessels over

Cash dividends declared

(end of year)..

gross tons

■v.:--" 33

v.-vV 34

Amount transferred to

82,491,113
1

43,466

Average number of employes.

39,747

38,027
in

Note: The foregoing
first time in 1952.

owned 50% or less.

—

Includes

1951

notes

126,095,669

;

Notes and

67,157,552

134,797,279

119,674,462

contracts

Estimated
taxes

products and merchan¬

method, which in the

market

lower than

*«»♦•

aggregate
imr'moO*.

Federal

income

and

supplies, at cost

230,114,730
<

.Total current assets.;;............

..$

Advances,......

196,064,149

40,879,959
611,549,832-

140,234,483

868,718,396

516,723,463

■

127,293,650
413,118,837

103*72,758

...

214,144,792

7,711,474

7,536,596

$1,844*15,057

w,..

$1,608,375,220

*87,129,135

764,179,432

$ 957*85*22

844,195,788

foregoing financial statements

are

180,252,197

■

-•

;

'■

10,015*53

10*39,192

861,902 '/•/.'

plan—net.............

861,925

(restored to in¬

in 1952)

Total

2,027,188

—

reserves

10,877,255

13,428*05
1

Equity

Minority Interest in a

Canadian Subsidiary

Stockholders' Equity:
Par

value

22,042*28

—

$25

•.

capital stock issued—27,595*48
each,

including

(authorized 40,000,000
Undistributed earnings

treasury

$1*49,420,985

taken from the 1952 Annual Report, dated March 18,

for

stock

shares689,881,200

employed in the business

(including $25,000,000 appropriated

28*61*39

$ " 27*10,763
$1,736,081,000

226*88,949

•-

Employes' pension plan.

serve

Deferred Charges

.<•

shares,

Less—Depreciation, depletion- and amortization.

92*62*20

254*23*58

Marketing

•.

754,218,825

461,579,924

^Matrafagturmg

properties, plant and equipment

131,023,699

159,939,795

148,909,247

...

.•

•

Pipe Line

Other

11,682,397

147,423*04

Long-Term Deer.

come

The

profits

......$

31,801,794

Properties, Plant and Equipment—at Cost:

Net

excess

111,251*12

10,840*87

Foreign exchange fluctuations

Producing

8,089,790

1952—$56,000*00; 1951—

Incentive compensation

Marine

9,143,744

127,438,973

(less U. S. Treasury obligations held for

Reserves:

1951

was
....

Materials and

1952

liabilities

Total current liabilities.

dise, at cost determined on the first-in, first-

and

$85*00,000)

Crude and refined oil

Investments

'■

payable.

payment of taxes:
Inventories—

Accounts payable and accrued

receivable, less allowance

for doUbtfUl accounts.....

♦

also paid

were

for contingencies.

as a reserve

102,025,506

79,662,195

tl. S. Government short-term securities, at cost..

$25,657,465

Current Liabilities:

Cash

taxes of

DECEMBER 31, 1952 AND 1951

Current Assets;

out

534,835,584

LIABILITIES AND STOCKHOLDERS' EQUITY
1952

639*68,264

taxes were

$25,000,000 appropriated

ASSETS

"Accounts and

295,771,658

(or accrued) to Canadian authorities.

non-subsidiary companies

CONSOLIDATED BALANCE SHEET

addition, motor fuel and oil

$218*9i*97 during 1951. In 1952, similar

Canadian subsidiary, consolidated for the

The table does not include data

paid (or accrued) to governmental
agencies in the United States in the amount of $247,191,565 during 1952, and

includes data for 1952 only with respect to McColl-Frontenac

Oil Company Limited, a 58.24% owned

82,491,113

the

Revised.

211,837,243

—

Undistributed Earnincs Employed

83,934,415

capital stock account in

contingencies)..

Total stockholders'

$ 689,881,200

* -

as a re¬

639,568*64

534,835*84

....$1*29,449,464

$1*24,716,784

$1,736,081,000

equity

$1,549,420*85

1953* to stockholders of The Texas Company and should be reed in

Financiat Statements and the- certificate of Messrs. Arthur Andersen &Co., Auditors, accom¬
panying the financial statements; A copy of die report to stockholders may be had upon applicatiootothe Company, The sauL financial statements and report are note,
intended to constitute an offer, solicitation of offez, representation, notice, advertisement, or any form of a prospectus in respect of any security of The Texas Company. <

conjunction with such report which contains the Notes to Consolidated

The Commercial and Financial Chronicle

(1226)

of the equipment and in

Laige Scale Prodnction of
Aii-Conditioned Autos in Offing
By P. J

coming into their

Vehi-

own.

le Manufacturers who have done
much

rafety,

the

over

with

years

primarily
close

room

durability,

it is

mand

for

the

extension

tion

de¬
of

pretty

the

that

New York

believe

residential

give

considers

owner

the

best

mar¬
sec¬

City.

fair

had

The
how

formance

cooling

system

determine
of

Our

success

the

elusion

have

past

that

cooling

been

led

they

engine

avail-

the

could

con-

the

Chrysler

should have

im-

cooling
to

decided

tests

tional

cooling of

able

car

interiors.
In

last'

decade

the

P.J. Kent

have

working on the
development of an efficient and
dependable Cooling System.
Chrysler
Corporation,
for
in¬
stance, offered

fine system

in 1939.
But the intervening World

War,
material shortages
and the job
of filling the demand for auto¬
mobiles

their

since

the

all

took

war

attention.

the

eide

Vehicle

their

End

carried

Manufacturers

immediate

subsidiaries

the

pioneering effort.
Their work, resulting in the of¬
fering of Cooling Systems direct
to the public or through the auto¬
mobile dealer,, has stimulated the
on

demand

for

this

important

ad¬

junct to the automobile.
Many

makers

car

paring to offer

are

developed

organizations
their

within

their

which

and

plants

own

pre¬

engineered

manufactured in whole
m

now

own

will
in

part

the

In this

relatively wealthier

are

the United States.
fore estimate
market
In

for

the

stages

material

there¬

price

will

new

controls.

installed

system is

car

when

can

sold

the

and

What kind

free

mate

very

the

which

comes

Salesmen,

doctors

others

sppnd a good part of their day¬
light hours on the road and par¬
where

the

cost

can

felt

each

will

bearing

know

esti¬

have

the

very

manu-

that

approximately
werd equipped with car

cars

War

and

estimate the number
equipped
the war to be about
7,500.
must be appreciated however

r<Mce
i;

that

these

under

cooled
own

installations

conditions

sold

were

outlined

introductory remarks without
feie benefit of national
advertising
other

strong promotion.

Many
people have the feeling that there
\vill

Lie

Southwestern

limited

temperatures
c

of time.

/stems

\,ere

ciety

llJ ich.,

sold

above

considerable

by
in

small

the

pe¬
a

comes

1953.

com¬

Southwest

Mr. Kent before
Automotive Engineers,

March

100

because most of the
since World War II

located

talk

where

We believe this is

produced

panies
*A

only in

states

false impression which

very

Loout in part
l

market

range

egrees F. over

riod

odors

after

parts

driving

once

for

the

have what

highest capacity
system yet dis-

debated at
for

comfort

from

hay

people who

fever,

will be

that

simple

very

instrument

board

evaporator

blower, thus

velocity
fee

cool
We

car.

dampers accessible from the trunk

asthma, compartment to close the
ducts in

the

have

the winter

time.

automatic

evaporator

unit

outside
We

valve

which

con-

ex¬

years,

that

trols the minimum temperature of
the system.
A manual setting or

sold

adiustment

new cars
a

passenger

The

ket,

will

for

the

automatic

valve is accessible from the trunk

compartment.
further

So¬

Detroit,

which

estimates

Once

this

should

valve

require

little

attention.

have

course

Desie-n
Design

each

his

The trend

mar¬

con¬

siderable

recent

vide

sengers

tion.

dupe

will

buying

tooling
parts

which

the

amount

outside

hand

expensive

which

can

optimistic

market he will of
make
in

his

vantage of
to

parts

many

own

plant
more

about

course

possible

and

the

want

take

ad¬

efficient

tooling
keep the cost of each part low.

Time element will also enter into
many

decisions about the type of
or tooling to use.

process

If he goes into car
cooling with
doubts about the extent and
per¬
manence

the

market

likely wish to amortize the
ing as quickly as possible.
to
a

the

above

say,

the

will
tool¬

answers

questions will have

great deal to do with the price

series.

two

the

front

takes

one-

conven-

the

care

mounted

the

time

the

lower

condenser

where

fit

speed.

system into

automobile

the

trunk space which is of least value

space,

particularly in a company such as
the Chrysler Corporation where
we

must

work

with

numerous

body types and with both V and
vertical in-line engines. Needless
to say, it called for much assistance

the

and cooperation from the

inlets

end

air grills

the

fairly

was

and

The

the

blower

grill is lo-

thin

directs the cool air in

strata

along the roof of the
creating a minimum

body,

car

draft

the "back

sengers' heads.
tribution
auate

the

This natural dis-

has

proved

very

satisfactory
five passengers in the

adf1-

even

and

with

Personnel
Since the installation and
icing of
pression

refrigeration
the

new

serv-

system

personnel of automo-

bile factories, we decided to organize a school where the system
and

its

various

components couid
be studied in detail.
A

class

room

Institute

aside for

?his

the

Chrysler

Engineering

set

was

The engineers who had
participated in the
development of the system were
purpose

instructors.

Each plant

manager and chief engineer of the
*
where
co°ling
tem
would

instaiied

send

representatives
tVipsp

ciljdpri'

were

invited

the

rpnrpspntativps

engineers

nlant

in-

foremen

inspectors, service representatives
and in
from

some

sales

representatives

cases,

and

"aye had the respon-

highly desirable
cooling equipment be
compact

and

light

that

kept
weight

the

par

$50

per

adjustments

Cumulative

divi-

payable

are

first

par

accrued

convertible

events.

clends

con-

nlus

stock

subject

certain

quarterly on
of February May

days
and

November

each

year.

The stock is redeemable, at the

option

of the company, in whole
part, otherwise than for the

sinking fund, at $52.50
on

before

such

Dec.

redemotion

cents

nrice

per

1957

31,

with

decreasing

Jan

our

each

engineers

plant in mak¬

ing and testing their pilot instal-

j"°

atl0ns
Service

series

manuals

will

ceeds

and

comnanv

porate purposes. Part of the
be

may

used

bank

outstanding

The
fixed

1955,
year

tion

price

The

time,

Redemp¬
under

may

sinking fund
and credit

share, plus
be antici¬

pated

fntict

may

stock. Shares of the

option

into

the

through the sinking

purchased

taken

common

preferred

new

the

dered

the

per

for shares converted into

in
in

retire

shares.

retirement

redeemed

beginning

sufficient

sinking fund is $50

any

may

entitled

fund

4,500

pro-

pay

that

the

also

sinking

Dec.

loans

stock

the

and

sinking

into

surren¬

fund,

stock

common

be permanently ret ^ed

s a

and

not

Mallory

reissued.

Co.,

Inc.,

in¬

cluding its subsidiaries, is one of
the leading producers of a diverHi
(

sified line of certain component
parts for use in the electrical and
electronic

industries

and

the

metallurgical field. The company
four plants in Indianapo is

owns

?,»d °"e each in Tarrytown N. Y ;
£ra:nkfort, .Ind.; Tipton, Ind and

Chicago 111. Over the years it has
an<? expanded lts £peFa~
,n'~" ^ include products
aving
a wide range of applications in
the aircraft, automotive, commu-

electronic,

ele1ctrica1'

?icaiT,\

household appliance, metal, public

utility,

television,

radio,

trans-

Pprtation and general industrial
fields.
the

sales

the

after
were

company for
31
1952

Dec

eilucu

amounted

profits,
charges,

ended

vear

ine

$53,443,117;

net

and
other
$1,897,773 and earntaxes

°f common stock

and

probably
slides will

projector

initially to the

be available for general cor-

Net
.

addition,
with

stock will be added

advertising.

,....

■

dividends

Common

cur¬

are

be used for training service men
in the dealers' shops, supple- rently being paid at the rate of
instructions $E40 Per share annually.
mented
by
direct
through

factory
sentatives.
It

not

service

With John M. Barbour

planned

make
the

the

own

familiar

first

the dealers be-

and

larger

its

with

the

servicing

dealers

may

equipsome

plan

cover
many

and

many

Goode has

Calif.—Courtenay
become associated

with John M. Bafeour & Co., CitiBank Building,

Witjtl

asadena VxOrp.

(special to the financial chronicle)

obviously

impossible

PASADENA, Calif.—George W.

in a paper of this length Woerner has joined the staff of
of the problems which the Pasadena Corporation, 234 East

vehicle manufacturer has to meet

PASADENA,

of zens

shops.

'Special to the financial chronicle)

any

for

installations

however;

iepie"

install the cooling systems in their

sibility of coordinating the work,

share,

Laboratory and the Airtemp Divi-

°.ra.Y?fy ^

common

com-

ment

Section,
heating and air conditioning lab-

from date of issue

The stock
jnto

stock,

share)

ner

cancelled

mechanical vapor

design department, also the engineers of our Fluid Dynamics
Electrical

($50

preferred

converted

come

our

Co., Inc. 4!/2% cumulative

vertib'le

fund,

Education of Factory and Service

year,

with

company,

car.

electrical

sion

Corp. headed

underwriting group which offered
public sale yesterday (March
18) 150,000 shares of P. R. Mallory

each

intake,

blower exhaust

and

field

our

Mallory Pfd. Stk.

for

package

simple

cated at the center of the package

en-

designers with

P. R.

Lee Higginson

short-term

connect them with the outside air

gine, the body and front end sheet
metal

outer

shelf,

cooling

remaining

Higginson Offers

general funds of the

neces-

sity quite bulky but fits into that

worked

Lee

the

volume

car

The evaoorator unit is of

space.

situation

con-

are

dust pan

which increases with

which

presents a very
great problem to the engineer who
has

The

cover

which

each of the years 1958, 1963,
1968,
is normally lo-' 1973
and 1978, together in each
cated.
Air entering the radiator
case
with accrued dividends
grill passes down and through the
Proceeds from the sale of the

c;pbrini

re-

size

same

car

highlights

result of a 13-year research
development
program
by
Chrysler Corporation engineers,
I hope they may prove of interest,

parts

About

This

radiator

time

mechanisms

occupy more

materials

fabricated in low production.

radiator.

pas-

the

machinery and accessory equipment trend has been toward more

This

economically

located

method

pro-

work

dies,
advantageous

use

for
same

over-all

design

has been to

space

complicated

rather than create expensive
etc. He may find it
to

the

minimum

already tooled, doing

are

certain

Problems
Problems

and at the

vehicle.

conservative

very

keep

utilized

of automobile

years

bearing on the type of
tooling and the rate of amortiza¬

Needless
the

manner

manufacturer

connected

air

have

should

ten

found by split-

was

condenser

con-

ten

equipped with

engine

cut

of three speeds to

one

the

switch

depression,

out of every

nassenser

finally decided

give

the

one

the

air

nec-

the only control which should be
readily available to the driver

other respiratory diseases.

length

some

rpnxi^um

and

trolling

from

auto-

passenger

the

August

the

shelf

movement

believe there will

market

use

one.

ting

due

mobiles.

willhave the desire to

car

good

the

conditioning

off

ques¬

the

manufacturer

cooling before World

result,

admsted

provided,
fee appropriation for
advertising
cad sales
promotion, etc.

v. e

leaks

the hot dry or warm humid

Type of Tooling and Tool

fi /"during space to be
allowed, the
feme
of tooling to
be

fehOO

body

car

through the
body struc-

air

various

would

the world

hour

per

with

cr^afe a slight pressure in the for packing luggage.
c?r hot
body to prevent infiltration
By locating the return
of
and dust

charged off as a business expense.
Anyone driving an automobile in
of

for

passenger

objectionable

who

and

important

answer

with

important

aii

unit

Amortization

and

outside

the

the controls which would be

parts of the world.

compartment cooling system..

This

25%

evaporator
into

ter

How Fast Can It Be Developed?

tion

about

the

essential

was

war

Market

This

closed

warmer

mainly to^ people^ smoking in the
car.
Outside, air is also necessaiy

pect, within five to

the

tons.

compartment to keep the

cisions. This paper will deal with
some of these
problems, although

figure

of people will want
cooling in their automobiles?
Certainly many people in the hot¬
or

is started.

car

that it

distribution

also

Broad

after the

have

always dangerous to pre¬
dict, yet I believe, barring all-out

How

this

one-quarter

enteiing

the Vehicle Manufacturer is faced
with many new problems and de¬

of course, the author makes no
claim to having all of the answers.

capacity

revised

decided

air

car

miles

interfering

denser

also

11/4 ton cooling

down

situation.

one-half

in-

the

was

means

idling and low speed load.
remaining two-thirds of the

ture.

melting

have

one

and

volume

endeavored

and

speed.

capacity is required foi low speed
operation and to get a quick cool-

time pay¬
ment basis which should ease the

field,

new

would

fairly good export
cooling.

car

early

free

are

and

comparatively

them in

undoubtedly be the big factor in
determining sales, assuming we

suffer

plants of subsidiary companies.

are

which

cars

the people who buy

ticularly

Cooling Sys¬

car

tems which have been
and

the

buy

part of the vehicle

interim, companies out-

the

who

export,

than

even

mar¬

which

countries

during a good part of
It is also true that the

year.

been

automobile

our

consider¬

warm

people

manufac¬

car

turers

lies

quite

several

export field

part of

ket

the

more,

the

and

one

few

light

can

generator

our

The solution

third

the

which

major problem

provide for

miles per hour and after extensive

smaller

condenser large enougn

capacity

the

have

JjJvldeSS

without

arise

location

the

vided

controlling the
speed independent of
speed would also be

Anotner

automobile

ice

there

.d^,auwin^ up oar ?pe~ cooling.

ciiications at

tons

for

and

engine

comfort

States.

compres-

desirable.

United

our

hoods

means

compressor

find

per-

With the trend

compressor

Some

geographically we have a good
demand in practically all parts of

pro¬

lower
need

ai-

was

proven

durability,
rnis
large slow-speeu

drive problem.

toward

failure

venture.

which

well

very

investigations

systems
able

may

the

the whole

p.™vedsay_that

and

fairly

unit which added to
sor

the

just

what kind of perbuild
into the car

and

mucn

safely driven at higher speeds,
preferably
somewhere
between

Performance

engineer's decision

which

one

tooled and

meant

will

Thursday, March J 9, 1953

stallations increases,

select

ready

definite

System

its

available

develop and tool a compressor to
our specific requirements,
we

weight

market

coolers is in the

room

near

market

cooling systems and

car

However, it will
important when the

sacrificing

not

was

fit

ing equipment.

operations.

where

secret

ket for

the

growing

clue

exists for

are

preparing
meet

coolers should

good

and

economy

with

Experience

better

riding quality,

manufacturer's

only be adaptable

Requirements

the

base

the

cars.

very

Cooling

explore

their

without

time

over-all price of the car and cool¬

quite natural that they should

was

each

prospective

their limited facilities it

and with

own

since

system

stages

his

still

and comfort value of air-conditioned driving.

f re
<

cooling

years, one

Systems

possible

periormance.
As

important in the choice

early

out of 10 autos will be
equipped with air-conditioning, Mr. Kent traces development
of automobile air-conditioning in last 15 years and concludes
the market for air-cooled cars is expanding. Stresses health

Cooling

the
de-

111

loo

equipment will

Automobile

turn

factor

car

Chrysler Corporation, Detroit, Mich.

real

From
a
strictly
competitive
point of view price should not be

KENT*

Predicting that within 10

termining the market.

Engineer—Electrical,

Executive

win

price

...

undoubtedly
more

now

there

Colorado

Street.

was

previ-

be ously with Investment Securities
unknown which Company of California.
will

Volume 177

Number 5204

...

The Commercial and Financial Chronicle

(1227)

A Colorful Brochure and the 7952 Annual

Report will be sent

LANE-WELLS

COMPANY

SUMMARY

REACHING
secutive

new

ANNUAL

high for the twentieth

REPORT

Odessa

con¬

and

the

Company's history, 1952
consolidated gross income was $24,247,021, anincrease of 15% over the $21,008,507 reported
for 1951. Income from domestic operations in¬
creased 9%, from Venezuelan operations 48%,
and Canadian income 65%.
year

Consolidated

net

after

field

stations

new

taxes

the

stations

the

the company

added

Co.

building

the

Exposition. Petrofacilities

new

in- field

was

Stockholders of record

purchased

the end of 1952

numbered 2790, an increase of 80

during 1952, totaling $ 1.60
The staff of research,

engineers

ing the

operation, including 72 in the
United States, 8 in Venezuela and 5 in Canada.

Marked

year.

services and

made

on cur¬

projects for providing

improving

new

than 25% dur¬

present

now

considerable encouragement for

operation of

share.

per

progress was

equipment. Field tests

or
additional shop and office facilities
completed during the year in Abilene, Beau¬
mont, Bowie, Corpus Christi, Houston, McAllen,

New

year.

design and development

increased by

was

and long-range

rent

were

for the

quarterly dividends and extras were paid

Four

were

joining the Los Angeles plant

service and sales

year

new

Natchez,

provide for future expansion of the main offices
and shops.

Virden, Manitoba.

and

Laurel

Anaco, El Tigre, Jusepin and-Las
Morochas, Venezuela. A five-acre property ad-'

opened in Quiriquiri. The

Saskatchewan;

Service

camps

Canadian company opened new stations in Swift

Current,

addition

Tech

were

was

the1 end of the year

facilities

Tulsa International Petroleum

Monahans,

location

additional

Mississippi and Lake Charles, Louisiana, as well

opened during 1952
McCamey and Winters,
Texas; Henderson, Kentucky; Glendive, Mon¬
tana; and Williston, North Dakota. In Venezuela
a

in progress

$2,406,424, or $3.34
share. This compares with $2,276,789, or
$3.16 per share in 1951. Net current assets in¬
creased from $2,731,353
to
$3,704,358. Net
investment in plant, property and equipment
increased $1,335,319, to a total of $9,374,371.

Freer,

Casper and Cody, Wyoming. Construction

was

and minority interest, was

New

Texas;1 Great Bend

Falls,

Russell, Kansas; Healdton, Lindsay and

and

per

1952

FOR

Wichita

request

Seminole, Oklahoma; Williston, North Dakota,

income for 1952,

and

new

methods and

progress

offer

future profitable

services.

COMPANY

LANE-WELLS

(and subsidiaries)
CONSOLIDATED

BALANCE

SHEET

DECEMBER

Cash and working funds
Accounts and

(Less

notes

Federal and

reserve *

Long

1,996,165.14

company

Property, plant and equipment
(Less $6,689,971.92 reserve
for depreciation)

Deferred

charges

495,997.05

♦

2,500,000.00

241,340.76

Authorized
1,300,000 shares, par value
$1, issued and outstanding
—

720,000 shares

9,374,370.82
188,485.67

Capital surplus

384,210.42

...

Earned

•

720,000.00

1,247,714.00
9,438,366.99

surplus

$16,769,659.93

COMPANY

LANE-WELLS
Bullet and Koneshot Perforating

Electrologging

GENERAL

OFFICES

AND

PLANT

72 Branches in

•

Radioactivity Well Logging

•

Packers

5610

•

SO.

Bridging Plugs

SOTO

ST.

•

LOS ANGELES 58

Principal Oil Fields of the United States
8 branches in-Venezuela.
subsidiary, 5 branches in Canada.

Petro-Tech Service Co., a subsidiary,
Lane-Wells Canadian Co., a

1,419,738.45

1,202,499.73
debt

Capital stock

intangibles
.

term

taxes

Minority interest in subsidiary

Investment in non-affiliated

foreign income

estimated

3,037,310.21

......

Patents and other

payable and other

accruals

for doubtful accounts)
Inventories

Accounts

1,293,120.62

receivable

$130,120.07

1 952

31,

LIABILITIES

ASSETS

Foresees Reassessment of
versity, in radio interview,
business

Radio

Station

Administration

new

broadcast

WTIC

over

New

to the

expenditure./Moreover,

ket

Uni¬

opinion surveys indicate
that the prestige of big business

our

high. Labor leaders clearly find

that

Dr. John Per¬

big business easier to deal with in

Was

Miller,

Professor

Economics

Yale

trators

such

that

anti¬
cases

against

reassessment

1930's.

the

attitudes

sity, predicted
the

economists and adminis¬
are
reconsidering
their

many

Univer¬

trust

than small. Moreover,

many cases

think

likely

healthy.

Mr. Mullins: What do you mean

"Big

by that, Mr. Miller?

Prof.

reassessed

under

tration

been

its

cause
more

John Perry

sym¬

Civil

point than prevailed under
ceeding Administrations.

pre-

and

War

was

The

text

the

broad¬

radio

follows:

tion

Mullins:

Miller, it has
some

Professor

been suggested in
that the Eisen¬

quarters

hower Administration is likely
be

Administration by big

busi¬

big business, and conse¬
quently we can expect a relaxing
of

anti-trust

our

designed

laws

and protect us from

think

you

there

which

monoploy. Do

merit

any

this argument?

tell

what

early

effects,

if
any,
the change in Administration will
have

our

bers

the

policies with respect
to big business. Clearly key mem¬

Administration,

new

recruited

from

business,

big

substantial

view

business

cally

and

different

sympatheti¬

from

extent

likely

are

tendency to restrict production
proverbial

van¬

point than some of their
predecessors. I should not be sur¬

tage

these

call

You

and

strength

conclude

then

is,

generalize

course,

about

trends

industry. The trends have been

different in various industries and
we

by competition the availabil¬

mean

ity to buyers of several alterna¬
tive

supplies

the

these

patronage

improvement in product, then,

during
there

the

has

last

not

competition but
Mr.

been

Mullins:

years

decrease

But

have

heard

a great deal about the concentra¬
prised consequently, if we found
tion
of
market
control
in
the
lessening of zeal in the initiation
and prosecution of cases under the hands of a relatively few firms.
Doesn't
this
mean
anti-trust
laws.
that,
even
We
have
seen
such
shifts in the past. On the though monopoly may not have

the

committed
direct

the

less

reliance

government

economy

ance

Administration

and

to greater reli¬

the creative forces of free

competitive

markets.

But

not yet

clear to what extent they
visualize the need for the effec¬
tive enforcement of the anti-trust

laws

attain

this

Mr. Mullins:

suggested
have

end.

the

past

been

unduly
antagonistic
big business, that we have

toward

assumed

crime

for

firm

true that the

the

output

relatively
figures
strength

been

this

has

true?

Prof.

Miller: American attitude

toward

big

business

ambivalent.
there

all

side

who

our

has

the

those

are

business,
to

think

see

idolize

the

big

key

other

those who look upon big

are

business

with

its

both economic and po¬
policies toward big
have varied depending

power

litical.

which of these attitudes

the

ascendancy.
1930's big business
repute partly for its
and

fearing

Our

business
upon

suspicion,

was

During

the

was

own

failures

dis¬

partly for the failure of the

system of which it

was

part and
in which it had held in the 1920's
a

the

key positions of power and
prestige. It was the whipping boy

ited

part

Mr. Mullins:

attitude
Prof.
are

changing?

Miller:

the

Yes

reassessment

business

contributions
1940

war

and

have

think this

in
of

do.

big

There

all

sides

place of

society.

The

business

defense efforts since

been

very

firms

substantial.

100

other

tion

the

effect

the

ing

1948. In

is clear

in¬

many

that

the

posi¬

often

firms

new

continuous

pressure

industrial

our

have

meant

giants

Competition
held

may

ideal

protect
fol¬

perfection

But

some.

clearly the environment has been
conducive to great creative
material

and

effort

big business has taken

which

progress,

that

competition

often hear

wasteful and

destructive.
Prof.

Miller: It

competitive

is true that the

has its waste¬

process

ful and destructive elements.

The

competitive system is not perfect
costless.

But

much

price of its

this

creativeness

and

For example, the rise of

progress.

the

automobile

has

virtually

mere

the

old

synthetic
are

strik¬

ing examples. But these

are by no
unique. It is true that the

means

industries producing new products
are
themselves often highly con¬

centrated,

this

but

need

not

change the fact that the introduc¬
tion

creases

these
the

products

new

in¬

To the

creative

was

extent that

the wastes

destruction.

reduce

can

Can

you

give

without

creating

this would of

Miller:

Yes.

Consider

of aluminum. Alcoa
War

producer

the

But this is

virgin

sical

example

monoploy.

But

velopment

from

trial

the

look

this

the

judge

enforcing

the

You

new

the

de¬

product

point of view of indus¬

buyers

Aluminum

was

and
a

new

except

break

this should be the

continuing

tional

environment

particularly in the event of sub¬

remedy
firm. But

innovation

favorable

rare

excep¬

case.

Mr.

Mullins:

have

you

think

succeeded?

stantial reductions in government

that this miracle of American

in¬

dustry has been accomplished
the

face

trust

policy.

aggressive

anti¬

doxical

results, particularly with
big business. In many

respect

they

have

efforts

ways
ness

centuate

the

business.
it

is in

deflected

busi¬

which

ways

ac¬

development of

And

the

many

laws which make

big
time

same

the anti-trust

ways

big business

have

from

anti-trust

laws
far

Mr.

Mullins:

This

Miller:

No.

danger

that

There

you

explain

the

big

wisdom
the
us

and

miraculous

paradox.

Would

than

and

production

achieved in the last 15 years were
achieved
through
big business,

they

were

business

not

alone.

were

favorable

alternative

cess.

The

products

achieved
The
for

demand
was

for

big

conditions

business

suc¬

industry^

high due primarily

premium

independent

the

merger

These

firms.

tax

could

be used

effectively to

the

sponsor

firms consistent with

and

needs

the

foster

forces

smaller
defense

economics.

sound

need, then,

of
our

growth

positive program to

creative

competitive

the economy.

Mr. Mullins: I

then that you

see

big task ahead.

Prof. Miller: Yes. The preserva¬
tion

and

strengthening

the

Prof. Miller: Yes, let me
explain
first why I believe that the anti¬
trust laws have accentuated the

policy. The structure of industry

what

mean?

omy

been

big

clear

business.

for

long time
agreements or conspira¬
a

has

crucial part of

our

public

changed substantially in the
half century—and the com¬

last

petitive
forms.

process

But

are

taking new
to be¬

wrong

is a thing
prerequisite to a
successful system of free private
allocate
customers, restrict pro¬
duction, limit the entry of new enterprise is that the competitive
firms, etc., are illegal. Likewise elements remain strong. We need
initiative not apathy on the anti¬
predatory practices by dominant
that

all

cies

between

firms

fix

prices,

firms to exclude competitors from
the market are illegal.
Thus, the

typical
used
to

cartel

devices

by firms in

insure

which

are

countries

many

their survival
been

denied
Each

salvation

petitive

and

suc¬

Ameri¬

firm

through

market.

The

the

ex¬

com¬

avenue

directions.

Survival

that

the

competition

past.

trust front. We need to reconsider
many

of our government policies
light of their effects in

the

creative

stimulating
One

the

real

Administration

competition.
of the new

tests

is whether it will

put its efforts into energizing the
economic

system

which

it is

committed.

denied

lieve

its

Standard Inv. Adds

ener¬
(Special to The Financial Chronicle)

gies have been deflected in other
and

PASADENA, Calif.—Winston B.

business

has been added to the
effort, tech¬ staff of Standard Investment Co.
nological development, new prod¬ of California, 87 South Lake Ave.
ucts, superior service, the control
have depended on the re¬

success

the

patents,
of

similar
of

these

ownership

raw

factors.

sonably

efforts

of
and

success

Mullins:
But

what

your

Joins Brush,

SAN FRANCISCO, Calif.—
rea¬
equally Kevin J. O'Malley has become af¬
often brings filiated with Brush, Slocumb &

But

Co.
what

see

about

paradox?

you

the

other

You

Stock

Miller:
that

reaches
of

Yes.

that
a

firm

large size and

leadership,

this

mains

vulnerable.

laws,

vigorously

vent

after

even

firm

a position
position re¬

The

Montgomery

1
of

the

San

Street,

Francisco

Exchange.

said,

I recall, that it is our anti-trust
lawsi which make big business ac¬
ceptable.
Prof.

Inc.,

members

mean

Slocumb Co.

(Special to The Financial Chronicle)

some

presupposes

size.

large

important,

materials,
Success

large size in its wake.
Mr.

Gardiner

of cost, sales

although
technological de¬

competitive elements in our econ¬

business

powers

be clear that

miracles of

velopment

re¬

attribute

again

greater

our

situations and

new

you

care

part

business

assessment

place

seems

mean.

Prof.

laws

new

feel there

something

being serious might be wel¬

comed?

the law to fit

ac¬

ceptable.

Consequently

Administration

consumers.

invading the markets for copper,

anti-trust

policies should be revised. More¬
over, the policies of the Defense
face merely
negative—prohibiting Department and other govern¬
ment groups in placing contracts
the restraint and
monopolizing of
trade—they have had some para¬ and stimulating plant expansion

big business.
feel

the

continuous amplification of

marks much business effort. While
the anti-trust laws are on their

business.

opti¬

and

our

portant
element
in
stimulating
the aggressive creativity which

duction

seem

forcement

understanding of the
/Mr. Mullins: Do you think this problem. Beyond this, we need a
has been despite our anti-trust positive program for
fostering the
laws—or because of them?
growth of new and growing firms.
For example, several aspects of
Prof. Miller: The vigorous en¬
forcement of the rules of competi¬ our current tax laws discourage
tion have, I believe, been an im¬ the growth of new enterprises and

sources

you

our

new

perform

industrial
at

develop where there is

the

by and large

in¬

new

big business problem, no seri¬
ous problem of industrial monop¬
oly, that a relaxation of vigilance

has. Let

the clas¬

was

en¬

been

The task of

success.

such

until

aluminum
an

hard to gain and equally hard to
retain. Of course, some cases may

security"

delicate task.

Mullins:

Mr.

domestic

was

sole

the
de¬

"mutual

be desirable.

course

shall

example?
Prof.

and

them hard to gain.

make

business

that

our

inefficiencies of

serious

competitive forces.

Mullins:

vironment has
favorable

This suggests

view the purpose of the
laws is not primarily
break up positions of power but
your

aggregate

business,
of

mand for the last 15 years

own

available

for textiles

matter

Mullins:

Mr.

anti-trust

Prof. Miller: Yes. To make them

But this

bit complacent about

used

position
in
industry
acquired, shall depend upoxn
continued superior performance.

been

the

mistic—or perhaps I should say a

fibres

crucial

have

business.

by increas¬

and

unfavorable

which

can

had

output

policies

pected to stand alone, to seek its

ment

govern¬

anti-trust

dominant

amortization.

aspects of

many

markets.

our

once

accelerated

policies to insure that so far as
possible
the maintenance of a

Despite

another's

one

function

the

govern¬

industries and exiled the village
smithy to the realm of literature.

concentration

Plastics

the

indirectly
through the special tax privilege

has

Mullins: But

without, however, decreasing the
products.

stimulated

have

increasing

alternatives

directly

ment

development

important part.

many

pressures

plant and equipment has oeen nnanced

positions.,
have

not

model

the

many

and extend their market

fields, the efficiencies and without curbing
products has the creative forces in the system

new

had

compa¬

system

Moreover, in
development of

Finally, much of
of
government

expansion

the

has

small.

the

business,

cess

limits
of

cases

and

big

benefited

destroyed the wagon and harness

control

firms

new

largest in

the

effect.

same

many

example only 31

largest industrial

dustries

the

work.

output
to

100

For

nies in 1909 still rated among the

the

power

the Unted States. It
I

of the

our

the

dominant

World
you

increasing signs

big

effectively

positions of

large firms have been very

our

industries, the fringe
of
small firms accounting for a lim¬

case

of politics.

these

about

character

forces

But

little

hand, competitive

one

success.

been

firms.

and

market.

you

controlled

some

threat

few

tell

to be

business.

indus¬

substantial part

the

that

Mr.

necessarily. It

figures

industries

many

big, that we would be wise
change our attitudes toward big

Not

and

extent

competition
in
our
But it is interesting to

insecure.

the

about

economy.

trial concentration indicate that in

competitive

Some people have

that

Prof. Miller:

then,

nature

increased, it is pretty pervasive?

upon

initiative

think,

Miller: Yes. We know far

lowed

increase.

You

leadership has shifted,
the often frequently during the period.
New products, new processes and
sources

buyers through reduction in price
and

not

and

rivalry of these

win

sources

constant

Mullins:

little

too

Prof.
hard

that

in the be¬

and

firms

the

big business is more competi¬
tive than has been supposed?

Miller:

de¬

competitive

the

to be found

are

Mr*

note

been

the

upon

that

there has
decline in competition?
believe

were

simple indexes of concentration.

that

you

insisting

they

tive forces at work. The character

and

has

invade

argue

myths?

1939 violated

Act

of rival producers of
aluminum. My sole purpose is to

Prof.

Mullins:

Mr.

other hand

Alcoa

posi¬

the

that

velopment

monopolists.

during various periods. But if

Prof. Miller: It is still too
to

firms and

few

after the manner of the

are

competition

preserve

for

ness

finding

Sherman

wise

that in these industries there was

Bernard

Mr.

highly concentrated

hands

right

—legally, politically and economi¬

havior

the

position

monopoly

fact I think the courts were

forces

then,

think,

You

ing that two or more firms might

dustries
cast

competitive forces in
at large.

not have been better than one. In

output in many manufacturing in¬
was

development, much

which

incentives for industrial giants to

Prof.
Miller:
Only
partially.
expenditures will present a real
But perhaps more than many be¬
that data on concentration
challenge.
and changes in concentration are
lieve. To be successful in this ef¬
Moreover, I would point out fort we need a continuous en¬
that not conclusive as to the competi¬

becoming more and
pervasive. We learned that

monopoly

pathetic view¬

about

received wide

business

the

since

Miller

late

the

myths

We heard that there had
decline
of
competition

currency.

be¬

During

several

American

Adminis¬

new

Miller:

'thirties

the

and

Prof. Miller: No. I am not argu¬

the

Business" will

research

good thing?

cally—in

upon

competitive forces.

Alcoa's
a

billions

spent

Mullins:

Mr.

Haven, Conn.,
ry

the

economy

gov¬

has

you

creased

Public

the

ernment

will, the development of
this new monoply (for so it has
been called
by our courts) in¬
If

high levels of government

represented an

anotner

after

increase in the

viewing^^

sympathetically and from different vantage point
than its predecessor.

interview

sees

steel, and other products. The in¬
vasion of aluminum into one mar¬

"Big Business"

Dr. John Perry Miller, Professor of Economics of Yale

Thursday, March 19,1959

The Commercial and Financial Chronicle...

(1228)

anti-trust

enforced,

from

pre¬

With Davies & Co.
(Special to The Financial Chronicle)

SANTA

CRUZ,

Calif.—Robert

Harper is with Davies & Co.,
1220 Pacific Avenue.

Hooker & Fay

Adds

(Special to The Financial Chronicle)

entrenching it¬
SAN FRANCISCO, Calif. —G.
self. They are designed to keep
Brewster Loud Jr. is now con¬
open
the opportunities and in¬
nected with Hooker & Fay, 340
centives to new or growing firms
Pine Street, members of the New
to enter any field, and likewise
York
?nd
San Francisco
Stock
to

protect

the opportunities

and Exchanges.

yolume 177

1(12201 m

Number 5204 *.W The Commercial and Financial Chronicle

ANNUAL REPORT

1952

FINANCE

HOUSEHOLD
/

Household Finance

Corporation, chartered in 1925,

tinues in corporate

form

and the inevitable accidents of life make

largest organization

ment

ing

Many families do not have enough savings or other

can

itor, like Household, who is

It enables families to keep going dur¬

financial emergency. It provides a practical
transferring indebtedness from an unwilling to

for

lending converts debts already incurred into instalment
form, making possible the liquidation of indebtedness
within the maker's ability to save.

a cor¬

1952

Number of Branch Offices

Year-end

Number of Loans made

•

during Year.

577

r» r#

1951

573

1,871,915

$526,927,285

$323,927,390

$283,590,992

i, 313,023

1,260,281

$247

r»

1,951.435
$591,406,183

during Year,

Amount of Loans made

of instal¬

highly organized

willing creditor and from an inconvenient to a convenient
form. Instead of creating new debt, most of Household's

discharged
it is

a soufce

willing to convert present o*

a single obligation to be
in small instalments. The need is widespread;

potential debts into

essential service in

a temporary

means

be turned into cash in times of
savings, many prefer a temporary
liquidation of their assets. They then seek a cred¬
which

need. Of those who have
loan

cash loans

industrial economy.

consumers.

assets

wage system.

Higher prices, higher taxes, employment dislocations,

engaged exclusively in making instalment cash loans to

liquid

1878

ollary of the

con¬

organization established in

It is both the oldest and the

1878.

ESTABLISHED

$225

(Canadian dollar included at par)
>>-•

Customer Notes

Receivable

Year-end......

Number of Customer Notes Receivable at

•

• • • • • •

• I

Number of

Employed

Year-end

Average Balance per Note Receivable
Total Assets

# •

$357,320,911

Total Taxes Paid

as a

Dividends per

% of

•

Average Employed Assets

Common Share

Common Share.

••••»•»

$12,349,027
4.39%

14.18

$2.40

••••

$13,702,948
4.1396

•

Net Income per

$17,441,197

$4.58

\ Net Income
Net Income

$13,283,395

$20,391,842

during Year.

4,647

$15,636,104

Employees at Year-end

Compensation Paid Employees during Year.

$316,106,503

4,850

Year-end

$2.50

Statistics include Household Finance

Corporation and its consolidated subsidiaries.

Except where indicated, Canadian dollars are

expressed in terms of U. S. dollars.

'/•

£6

The Commercial and Financial Chronicle...

(1230>
of 30 years

California Municipal Financing

maae

By JAMES L. BEEBE*

The

pending in California, and ascribes the large amount to

scnool

district

payments

Californians

love to

Golden State.

been told

(don't ask

that

Southern

boast

Indeed,

its truth)

for

that

story has

to vouch

Iowan

moved to California and

body

returned

was

burial

had

died; the
Iowa

minister

the

and

the

for

being

little late, a friend of the deceased
who

also

was

Los

member

Angeles

Chamber

"While

for

wait

perhaps

the Preacher

would

you

few things about
I

hear

Los Angeles."

not

appear before
in any respect.

booster

the

Com-

stepped forward and said,

merce,

you

shall

try to present briefly a reasonably
appraisal of our California
municipal situation - its strong
fair

and its weak

-For

points.

convenience

your

discuss

these

matters

shall

under

the

following headings:
111

What maior

are

sues

pass

legislation

some

tutional

thn npvt

nublic bond

What

What'

that

back

ls back 01

problems

lie

ahead

investor in California

mu-

nicipal securities should know?
rt-

First,

the

State

907,000

The

10,586,000.

from 2,916,000 to 4,367,000.
From 1950 to the end of 1952 it
grew

r««T<«

the

which

cancellation

California

will

FitnQi

state

retail

dollar

principal

sales

(with

taxes:

tax

foods

and

which

tendance in the last fiscal year.
increased school attendance

i£ a11 in the elementary schools,
would require an additional new
capacity of 500 pu-

Pils to be built every 10 days dur"
in& the sch°o1 year- Additional

have

been

sold;

and $150,Housing bonds
voted Nov. 4, 1952, of which
$100,000,000 have been sold.

000,000

Veterans

Southern

Angeles

California the Los

County

District has

Flood

Control

issue of

$179,000,-

000 of bonds voted last November
for major storm drains. The first

sale of these
made

($30,000,000) is to be

April 7,

The

Angeles schools voted

issue of

$130,000,000 in June of
$30,000,000 have

been

which

sold.

000,000
for

Another

July

sale

$30,scheduled

tentatively
14,

1953.

The

sold

from

time

balance

will

over

the next several
years, with

sales

approximately

time

one

year

productive.
authorized
to

levy

cient

The

State

25%

levie|

the

has

under th

vainatinn

payable

are

valorem

real

taxable

+h«t

00?

city bonds

nronertv

The

nrnnprtv

u^ited

able

General obhgahon

tax

,evjes

the

thp

The

City of Los Angeles has

unsold

balance
bonds

sewer

000,000 voted

$4,000,000
issue

1951.

$21,-

date is

yet scheduled for the sale of these,
The

Metropolitan Water District

Southern

California

has

$25,-

316,000 of bonds yet to sell of
of

issue

$220,000,000 voted in

1931.

Another

$6,000,000 will be sold
about Sept. 8, 1953.
The Department of Water and
Power of The City of Los
Angeles

has

$5,000,000 waterworks

bonds to sell about
May
and perhaps

revenue

19, 1953,

$10,000,000

$15,-

000,000 of electric works revenue
bonds to be soid some time

during

19°3*
In

need education.
built.

There

district
hpi

mav

addition,

many

districts

bonds,

some

of the smaller

will

of the

selling

smaller

cities

will issue some general
obligation

bonds,
will

some

issues

cities

some

waterworks

bonds

revenue

and

will

small
sewer

issued

districts.

That i<?

anMver

many

ulation.

California

1950

the

♦From

address by Mr. Beebe before

March

12,

1953.

district.

can

had

population of 4,367,000 and

assessed

im-

million, and the assessed valuation

512,000.

people employed in manufacturing alone?-and a total number of
1,803,000 employed in all lines of

bonds

this

time,

al-

Los Angeles County, delarge industry and busi-

unless

Uess

surnassed

last

What

the

these bonds?

security

behind

The Veterans Hous-

Orange
census

County
figures

1949

(latest

available)

was

ing Bonds, issued by the State of twelfth-m
agricultural rank. Into
California, are payable, principal Los Angeles Harbor comes a fishand
interest,
from
conditional ing fleet that few
people know
sales of homes and farms to Caliabout, but which brings in more
fornia veterans. These sales condollars
from
fishing
than
the
tracts bear interest at the rate of
gfgat* fishing nort of Boston.
3%^ and
are
made
only upon
■
*
homes and farms with a limited California's Two Major Industrial
.

valuation.
California
sues

The

first

Since
has

War

authorized

Veterans
two

World War I

World

Housing

issued

are

Home

six

is-

bonds,

following

almost paid. The
&
Farm
Funds

areas

have

two

terest and

tivities

The
sued

State
to

school

provide

bonds

funds

construction.
district

overhead,

for

The

votes

is-

are

local
local

make

the State School Fund.
over

pe-

of 30,years (except for mul-

paid £or 25
rate pa*d by
on

The interest
borrowing dis-

years-

Vs % higher than the rate

the State bonds.

trict, if it maintains

The local distax

industrial
counties

comprise the San Francisco-Oakland metropolitan area, and tw0
counties comprise the Los Angeles

metropolitan

costs

major

California—six

have been exceptionally well handied. The veterans using the act
have paid the
principal and inthe

Areas

each

them.

ac-

They

comprise the major tax resources
and
population
of
California.
There are many other rich coun-

^es
had

^be State; would that I
time to
discuss
their
re-

sources, but I do not.
of industrial employees in the San

Oakland

nolitan

matter

great variety

approximately

the

Los

12,000

Aneeles

economy

metrn-

reasonably

now

above—sales

„

us and enjoy the clear and

income,

sunny

California,
March dayi
invitation

reeeived.
wnen likewise can shrink rapidly might have been well dare
business drops oft even However, 1
longer
no

issue

moderately- At the present time such an invitation, unless you
our State exPenditures exceed the would like to breathe our smogrevenus Produced by these three filled air.

be necessary to levy
increase the rates,
warrants

0ur

pres^

actuaflv

but

mpni

nieture

^d1'decline
1

<*./deCai^

cJlifonSa

Slate

annovinc
some
m

are

removed,
major problem, an

and

one

time' to

will

remain

come

many

^t-nn

^4J We also have transportation
are building hundieds of millions of dollars of
freeways taking people into the

a"c

business

you

smog

but it is still

mv5

like it

you

being done. A great
sources of it have been

taxes,

State

than. most, Cahfornlansresearch work on

which most Much

Lanre

(-alllorma btate finance.

metropolitan district

individual

automobiles, at very great exLuckilv our local finances are pe"sf' a.
wbile we are spending
in Sound condition
The reoui?e! a l0t °J m?,ne?L' W+ipmg
l0t °J
ment
0f
our
state
Constitutien
P/"°Per.ty °
? j^a.X
'
?n
that
ci+iGq
counties
and
sehonl
sb°veling a lot of dirt and mortar,
districts
mav
not
incur
in^v?.are n°t solving the transpordebtedness in
of
tho
our" ta^101} Pr°blem. Only rapid mass
rent
vcar's
incomo^nd 11,^
reasonable cost can do
exceDt hv
two thirds vote of tho
3at'. Ye. are now .ln
process
^eonle makeV theso^^nnhiic hodilt of studylng ma?s transportation,
Local

Finances

evces?

^
n? 11LZ
if
is
not
pvppcJL

as y0U ^entlemen 111 Chicago

within

riphtPdnp«
prnmcnt

pac11u

know, mass rapid transit is a real
headache' a headache apparently
not yet satlsfactorily cured any-

stant^
Where<
uonH" 'cem in
Cahforma cities have

naritv& Manv^ch^o^dfstrictJ have
;y:.nffl7pi cl
i! 'Lnilv
hn

and

addition

have

contracted

inarK from fhp «;+nfp nf rniifnrnin
Thp

larupr
not

th
:

nresent

ii-I

hnwpupr

1 nit

hrmdimy

w:ii

rli^trirtc

all

panaritv

,m'

induration

tLrp

anri

that

thrv

for

11 wiU be a PrinclPal co,nmetropolitan Los Angeles

long time.

^ Also.

have

some

pension

promoters in California who keep

stirring up trouble. Time after
time they have been defeated, but
they come back and each time we
are forced to organize a citizens'
committee, get out the bucket
brigade and run to the fire. Our
Californians have displayed

very

' ..
,,
good judgment in turning down
Generally throughout the State radical
pension
proposals.
We
assessed valuations are low. In sbould vote intelligently in Calir

Los Angeles County
Assessor has not put

valuations as rapidly

as the price

the

County

assessed

property has increased.

Los Angeles County assessed

While

fornja—Heaven
^ad

enough

imnr»ediate
rooters'

valu-

doubt

assessed

valuation

knows

end

have

practice.

see

pension

pro-

activities.
while

have

local

our

Jre.sJrP. represents more than 35%
to 40% of Present property
We

have

suance

had

revenue

the

up to now

they

not

could

issued

for which
have

decision of

preme Court some

price.

any wide isbonds because

purposes

years

been

our

Su-

ago

has

greatly restricted such bond isThat decision of the Supreme
Court is probably overruled but it still acts as a brake,

This

San

pand the purposes for which revenue
bonds can be issued is in
the hopper at Sacramento, with

the

Fran-

some

year

bill which would

indication

that it may

j situation than the local one.

in business

number employed

industry

late

occurs

With

industry,

tal
and

that

ahead

sues.

levy of cisco-Oakland Bay area was 902,49 cents for debt service, ceases 000, in the Los Angeles metropol''to have any obligation at the end itan area
1,803,000.
a

when

concern.

metropolitan
area was 180,000; in Los Angeles
metropolitan area 613,000; the to-

ahead

far

s00n

if a
corporate fran- climate of Southern
These. are great revenue and on a cold, windy
S,1,'odu^?,rs m inflationary periods, in Chicago such an
™ay

limited, and

As of Dec. 31, 1952, the number
Francisco

see

dis-

aircraft

m^tpLar5nS^PPnfSep1irrpnta^rket problems, and they are serious,
mately 50% of current market we
are m.uch more concerned and
area.
These are
value, in most cases I believe they
much more affected bv the nasubstantial industry, are considerably less than that. I
tio

both areas of
You will be interested in the
of

can

military

a?d
ChlSf'

vear

though, of course, in some cases by Fresno
County, has the greatest
obsolescence is a contributing fac- agricultural
production
of
all
tor.
coqntips.ip the United States: and

trict is

Iw17th An?utL c®ntra' States Group
Association °of America^ "chicaf-o3" fii*

all

unon

the

post-

few

some

which

are

tipurpose loans, which have a 40year limit) and interest must be

population of the State increased

valuation of $5,785,By 1952 the estimated
population had increased to five

homes

The loan is repayable

erowth—inrroaipH Jin
1940

provided

Population increase is the prin- activity.
cipal reason for so many Cali- spite its

'bonds? r.iod

Witimatp nuPctirm

From

are

improvements must be provided

loan from

Why So Many Bonds?

Why

Sewers,- streets,

when the population needs them,
You gentlemen realize that fact.

special district bonds

offered,

property

necessity

cutback

hope the demand will be lowered
and
the
possible unemployment

deep

other

substantial

appear
as

come,

While

insufficient from

unlimited ad valorem tax

taxable

result

em-

seeking

location.

un-

P°ned for a recession. These in- to
$6,723,000,000. The Los Angeles
elude some types of public build- metropolitan area includes a
large
mgs and other of the less im- number of industries-over
12,000
portant projects. But the major individual plants, with 613,000

Veterans

school

are

could

bonds,

and

„Uv

d®Xf in business,
al/tax_ decline inTusfne^

both backed by

property

upon

Any substan-

and

„

the

The school bonds and

are

AfrcTaft

pans

aircraft

nlants

air-

primarily

relatively small.

employment.

these

problems

engageu

maxum

L" ®
1ndouslj and now
n a
exceed income from present State
(3) We have smog. Twenty
Tde ^tate f California is years-yes, even 12 years ago, I
gear?.d ta thJee taxf' "?hlch 1 could hav.e in,vlted you to vlslt

permitted

Flood Control District

00o

£
f

Dresent time is apDroximately $4

Si*

depend

war

Angeies Cuun-

are

amcraft

ployed

men-

now

are

very

presently

who

sounds

3tiLv
^ Lsilient but
change from
L „±.Vb
evnendfrores havl military economy will bring dis® °pd tremendol^v
location and readjustment

Countv Flood

unlimited
,,

this

the

are

tax

impractical.
Necessary That valuation currently is $5,Public works to take care of m- 356,000,000.
creased population cannot be deThe Los Angeles metropolitan
layed* Schools must be built as area is composed of Los
Angeles
children reach school age and and Orange Counties. In 1950 it

water mains, must
immediately
when

But you read-

California

„

been

Angeles

an
on

[he

for

news

hiah

State

Such

during

control District bonds

Constitution

The Los

the

General Fund budget.
has not been

£rom

also

here

bad

in Los

county,

tial cutback by the armed services
Wjn
see
people

for us?

vaiorem tax suffi-

raise

Ume

very

far

military needs. Tne total numoer
0f planes required for civilian use

nudge

for anyone

of the people

plants

areas.

talk

sales

under the Constitution

are

larSfly

fornia

*Zpart.

dreana-

provements

1953.

Los

1952,

scheme, in my
ls largely a
planners
sounds good but is
a

dry

they luckily missed

industrial

Down

These taxes

year.

sew-

ers and water mains, streets sidewalks, curbs gutters, storm drains,
-these must be provided now. So
bonds are being voted.

awake

rash

oongation

manuiacturine

get it, and that the sta-

which

what

°Plnlon>

none

two

The

under present conditions

This

pretty

ily see from the figures
tioned the importance of

$100,000,000

population about
180,000 a year, adding a city bigger than Albany, New York, or
Des Moines, Iowa, or Nashville,
Tennessee, or Youngstown, Ohio,
each year. The Los Angeles City
schools alone increased about 15,000 pupils in average daily at-

still

are

will be found in it.

produces about $118,-

tricts voted Nov. 4

1952, of which

tistics

some

000,000 a year; and an individual
inc0me tax which produces about

t p
aiej

are

be available

three

2b%

suggest that those of

wants to

revenues

mar-

production,

you can

depression. Such

to be

issues

who

but

(2) California is* engaged in

area

y0Ur ne^hbors on each side, and

PnciHnti
Position

$185,000,000 of bonds for
building loans to local school dis-

major

dull.

expect

may

uoiius.

general

craft

statistics

and
you

MptmnDiitn
Metiopolitan w^tpr District hnnH?
Water nidrirt bonds
are payable from revenues and if

two

keted:

These

the

t have
i nave heard planners talk about
neard planners talk about
a ba(-'kl°g
Pabllc works for a

has

Fran-

will

tax

mately 1,900,000, a d the
geies metropolitan area population

schools, added and enlarged

San

$5,645,730,000.

other items excepted) which produces about $451,000,000 a
year;
a
bank and corporate
franchise

is estimated that the population
of the state increased approxi-

the

metropolitan

backed

popu-

the

increasing, in

concerned, California
heaitny position,

whisper to them that after
meeting copies of this talk

Angeles metropolitan

sales

does,

city, anu scnool district bonds

$6,723,-

the

Los Angeles and Orange Counties

increased 734,0 0.

area

Thursday, March 19, 1953

revenue

our

An-

What is California's fiscal posifion?. Our State General Fund is

lation of the Los Angeles metropolitan district, which comprises

Los

Retail

cisco-Oakland

debt.

3% million—from 6,-

over

school with

bonds9

manv

securftv

these bonds?

(4)

is-

fPW months

Whv

(3)

little

area

Los

tne

uu0,000.

const!-

amendment

authorize

in the Los Angeles district alone,

out of California

come

metropolitan

geies

are

metropolitan

$3,016,279,000,

If it

ban Fran-

full, and local school for 1951 were $2,93*,24/,000, in
officials fondly hope that they can the Los Angeles
metropolitan area

rv.nfnrtiit.'c

said

been

in sound condition.

are

Oakland

Cisco

from general state funds,

has

taxaoie properly in the

dencit

their loans in

rapid growth of population and wealth in that state. Points
out California's fiscal position is sound, and describes the vast
industrial expansion and heavy new capital investment in
California's two major industrial areas. Holds local finances
of California's communities

Any

estimated to pay about 60% of tne
debt service. Many of the school
districts do not expect to repay

West Coast municipal bond attorney lists major public bond
'

bonds.

tne

pay

The total assessed valuation of

Tuese funds are used

pose loans J.

Partner, O'Melveny & Myers, Los Angeles, Calif.

issues

(except for multipur-

ex-

pass,

(^aijforrijans
FedPraj

UnUed

gtates

rniipPtPfi

go*

a\\

the

collected

the

Dav

taxes

Qf the

total

ralifornia

taxes

68%

some

toueLieu *n L,
^oe,s
Federal government,
,

Every Federal
At

present

ington
..

affects

us.

change in Wash-

to chart

new

na-

■

place.

course; 1 »°Pe that takes
Too

long

propagandized
.

program

the

seems

tl0nal

that

can

from

have

been

Washington

squander

ourselves

nro_

gram has called for an added expenditure.

Volume 177

Number 5204

...

The Commercial and Financial Chronicle

(1231)

Metropolitan's 85th Annual Report to Policyholders
More Benefits for More

benefits

before! This

for

people than

politan Life Insurance Company. In 1952,
ments to

Some

policyholders and beneficiariefreached

new

daily transactions of Metropolitan
of

and

men

homes, and they

United States and Canada. Behind the annual

tan's total investments after

accounting lies the story of families helped

ment

toward

3.07% in

security, of widows cared Tor, and

children educated.

~
.

These

human

objectives far transcend the

books. Yet the

ment of

ment

figures reflect the plan¬

ning by policyholders to help

policyholders

insurance—a

by buying $3,600,000,000 of new Life in¬

surance.

vided

long-term investments in 1952 totaled

nanced the

many

vidual

record.

U. S. Government

Canadian

Gpvernment

Provincial and
Railroad

Public

;

Additional details of the
ice last year are

protection continued

Utility

request.
,<

CHARLES

143,537,746.75
66,051,354.87

660,243,225.66

■

1,514,241,381.02

On urban

properties
.

3,767,863,111.01

Funds left

653,976,566.00

paid to them later.

181,782,277.00

in 1953 to those policyholders eligible

receive them.

55,011,011.17

Policy Claims Currently Outstanding
Claims in process

161,582,149.54

Reserved for Dividends to Policyholders

2,076,077,747.18

$1,914,495,597.64

$9,856,893,709.00

of future policy

Set aside for payment

with the Company by beneficiaries and policy¬

holders to be

177,509,022.72

,',7

A":

Interest

Mortgage Loans on Real Estate
On farms

BENEFICIARIES, AND OTHERS

POLICYHOLDERS,

benefits.

preferred or guaranteed.

are

Policy Proceeds and Dividends Left with Company at

A"';

;

$18,064,177.72

31,1952

required by law, together with future premiums

and interest, is necessary to assure payment

•

All but

This amount,

of settlement, and estimated claims that

have occurred but have not yet been reported.

by adjustment of $1,900,000 in the

Real Estate (after decrease

aggregate)

•

Other Policy

439,058,209.64

•

acquired for investment
Acquired

under contract of sale)
'

" /
"

Made to

.
.

391,638,408.63
46,718,864.57

Policies

'.i

Prescribed by the National

<V"

Cash and Bank

465,211,481.47

^........

Association of Insurance Com¬

Contingency Reserve for Mortgage Loans
All Other

policies.
TOTAL

7,150,000.00

25.851,692.57

OBLIGATIONS

.........

SURPLUS

Premiums, Deferred and in Course

.510,927,801,491.34

of Collection

161,709,504.12

Special Surplus Funds

FUNDS

5106,783,000.00

557,944,554.32

Unassigned Surplus
100,898,064.65

Rents, etc.

Accrued Interest,

Obligations

175,519,891.02

Deposits

23.176,699.00

.........

missioners.

2,600,936.44

policyholders on the security of their

47,012,225.46

in 1953)

Security Valuation Reserve

mortality and morbidity fluctuations.

Taxes Accrued (payable

of mortgage in¬
(of which $2,059,121.24 is

in satisfaction

debtedness

Loans

for

76,947,311.14

Obligations

Including premiums received in advance and special reserves

Housing projects and other real estate
Properties for Company use...

TOTAL

664,727,554.32

SURPLUS FUNDS

MEpL-QBLIGAT/ONS

TOTAL ASSETS TO
.

TOTAL OBLIGATIONS AND SURPLUS FUNDS

$11,592,529,045.66

511,592,529,045.66

rrnsss

NOTE—Assets amounting to

$552,449,409.65

are

deposited with various public officials under the requirements of law or regulatory authority.

■■
.

'CI

METROPOLITAN LIFE INSURANCE CO.

1 Madison

Metropolitan Life

Insurance

Company

Avenue, New York 10, N. Y.

Gentlemen:
Please send

mc a

copy

your

Annual Report to

Policyholders for 1952.

(A MUTUAL
■

COMPANY)

•?

NAME.
Home Office: 1

Madison Avenue, New

York 10, N. Y.
STREET.

Pacific Coast

Head'Office: 600 Stockton Street,

Canadian Head

serv¬

Report, copies of which may be obtained on

Statutory Policy Reserves

...

Industrial and Miscellaneous

Stocks

OBLIGATIONS

Municipal
.

Metropolitan's

filed with the Insurance Department of the State of New York.)

$1,844,608,305.55

our

given in the Company's Annual

G. TAYLOR, JR.

President

$7,996,545,124.86

service which

policies.

who made possible the

progressive

protected by Accident and Health

OF OBLIGATIONS

FULFILLMENT

ASSURE

loyal and capable Metro¬

women

under Metropolitan Croup and indi¬

(In accordance with the Annual Statement

WHICH

and

METROPOLITAN ASSETS AND OBLIGATIONS - DECEMBER

....

complete without appre¬

by hospital, surgical, and medical expense

coverage

expenditures necessary to bring to

ASSETS

Ktk

policyholders quite properly expect.

in public favor, and this was particu¬

persons were

instances, Metropolitan fi¬

Bonds

not

policies. At the end of the year about 6,200,000

funds

help meet the needs of commerce and

industry. In

men

efficient

larly true of the new forms of protection pro¬

$1,600,000,000. The major part of these

grow

policyholders in 1952 amount¬

ciative reference to the

policyholders increased to

2. Accident and Health

low level consistent with

$192,000,000—the largest sum in the

1952 would

high lights in Annual Report:

new

experience of business

Metropolitan's Report to Policyholders for

but before the Federal income
3.73%—the highest since 1934.

33,700,000—a

high record. Old. and new

new

the

Company's history.

long-term investments made

were pro¬

policyholders increased their insurance protec¬

went to

5. Dividends to

investment return for 1952

1. The number of

childhood

service to policyholders.

politan

by $51,900,000,000 of Metropolitan Life

New

3.21% in comparison with

However, the Federal income

new

common

Metropolitan's expenses increased
last year. A continuing effort is made

keep them at

proper

the net interest rate, after all invest¬

Other

tion

deducting invest¬

their ambitions.

At the end of 1952,

tected

expenses

tax, was

Jhe fulfill¬

assure

3.00%. On

last year,

procession of cold figures across thq pages of
account

1951.

tax reduced the net

expenses was

somewhat

Metropoli¬

causes—particularly tuber¬

many

4. In common with

generally,

Company to 197,000 at the year's close.
The net rate of interest earned

Metropolitan's

diseases—reached all-time lows.

brought the total outstanding home loans of the

throughout the

women

among

and most of the

culosis

loans in 1952. Part of these funds
new

from

rates

invested in city and

was

mortality rate

policyholders continued to be favorable. Death

chemistry and electronics.

helped finance 30,000
are

intimately interwoven with the hopes and aspi¬
rations

$369,000,000

farm mortage

high—$945,000,000.

3. The

public the benefits of technological progress

in such fields

pay¬

The

the

ever

keynotes the service of the Metro¬

People

San Francisco 20, Cal.

Office: 180 Wellington Street, Ottawa, Ontario, Canada

CITY

.STATE.

(1232)

C, The Commercial and Financial

middle

Business Under The

the

undisputed
victim.

daze

is in store for us," promi¬
optimism regarding expansion of

the

And

pened

tory,

Ifche

Democrat

line

^recently
Adlai

set

forth

ice

the

opposition

by its

leader,

deed

have
to

energies
which

are

prog¬

jgrandfather founded

our

automobile

idea

which

building
the

.American could afford
In those days the
still

-was

posing

company

more to go on than

—

average
to

own.

national

something

of a freak,
threat to that

serious

automobile,
Profoundly
altered

our

•An address
by Mr. Ford at
•wf the
Jacksonville

Chamber

think-

it—and,

possible, ahead of it.

I believe that kind of
optimism
broadly held and based on a rea-

the American systern, can help to carry our nation

robustly

forward

the

ever

future

through

to take the

su£je^t

time

not

mmp

long

big

T.?f£

whenever

things went

going to blame now,
wrong?

Obviously

a
great many of those 35 million
Americans who voted for General

Eisenhower

November

should

Stevenson

met,

and

who

not

witness
The

Plenty of them
ag
Republicans

even

the

events here

...

exciting

course

people

may

seemed

most

us—

does

not

neces-

Industry,

reality,

being

given an unprecedented chance to
Put its managerial skills to work
in the interests of all the Ameri-

these days
polit-

even

dplipatp

concerned.

must

oUhiprt

that

say

which

rally most concerned with these
men
and
P°lnts of conflict between the
section of the government and my own business.
in support of As an individual who wants to

Americans

country—wrote

this

and

for peace—has

minds for

been

their

and

sizes

Americans of

upon

people

"ke
llKe

1953.

who

the

Country.

information

readjustments
great many of

And

us.

long view, such sacri-

fices—however great they
become

Investors look
on

your

may

small

very

be
in-

Middle-Sized

Big Deal,

Deal,

even

Small, Economical-Sized Deal.

have

the irreparable losses of lite and
wealth and the terrible conseQuences to our entire mid-20thof

civilization

the

event

an international atomic conflict,
Our

economy, and along with it

the

economic

understanding

matured—is really

become

dyed-in-the-

dangerous
and
radical
by
American
industry,

°*

act

lunacy
How

far

have

come

less

than 40 years!

tional

interest
progress

the

na-

perhaps

na-

the

and

key

tional survival.
How Should Business Assume
Role of Leadership?
if

that is

believe
the

valid

have

proposition, I
to the crux

come

matter—the

all-important

question of exactly how business
is to

role of constructive

assume a

in the nation's affairs
promote the aspirations of the

and

American

people through private

rather than governmental action.
When we start thinking in these

terms, we find ourselves dealing
in intangibles-like the question
of

what

fair

wage.

the

workers

company.

Paul

token

same

and

labor

many

profit, or what
Scientists, sages

have

opposition

that

for

our

the Cities

Addresso¬

in the

uu-lu

by firm

service

names.

with

big business.

available.

his

bigness.

Canada) is

gummed roll

have

fears

this

score.

believe the

Republican Adminis-

tration will

effectively further the

real

interests

alt

the

IlLll DLIV I

||a

0 LID Lit I

I III*

UU», Intfa

Publisher, of
"Security Dealer, of North America"

25 Park Place

ni?

hold dear.

____

KEctor 2-9570
______

New York 7

of life

a way

Cornering of Market

I- don't have much patience with
the man who feels that his par-

has

cornered the
Americanism—or any

group

market

market.

this

complex
society of ours, nobody knows all
the

20th-century private enterprise will be up ahead pulling
—and not out back, dragging its
feet.
a

Let AM Segments of
Econcmiy Be
United on Basic Objectives

One

important

result

the

Its role has been and should Con¬

tinue

heard

The coming to power of a more
conservative

farmers

the

even

same

heard

believe

say

that

I have

what

for

labor.

businessmen

business.
that

America
that

what

for
Is

have

say

the

Personally, >I

what

good

all

for
us—

good for the
good for America.
It might be good for Ford Motor

world is

government,
.

one

friendly perhaps to industry

than

its

predecessors,

does

not

automatically relieve us of our
role as the watchdog of our free
private-enterprise
ture

crises

Fu-

economy.

for

create
regimentation as

any

the

need

may

severe

past.

have undergone in the
Our role must be, as in the
to

try

hold

But
j

such

regi¬

absolute

safe

believe

defensive

the present atmosphere

industry
a

can get off the
little and accept more

readily the broad
which
upon

current

responsibilities

history

forcing

it.

I believe it is the

best for agriculture is best for the

say

to be, in the best sense of
word, a conservative role.

the

answers,

with the national interest.

an(j

balances, industry has played
increasingly vital role in curb¬
ing the excesses of government.

minimum.

Americanism

ticular

system of checks

mentation
on

people, nation. I have heard labor leaders

and that

^vCIDCDT

are learning
in terms of

On the other hand, it is a fairly
industry and the Republican Party common thing for each
group to
will ignore it only at their
peril, identify its own peculiar interests
I

small additional
charge.

UrDDCDT II

„ of

remarkable

lamb

lion.

government

past,

terests in preserving

other

There, more or less, I think we
have the party line of the Administration's loyal opposition.
And
.

warns

which he feels may be lost under

thousand.

also supply the
list

party to be on the alert for the
interests of the "ordinary citizen,"
all this so-called

less

own

believe, tends emotionally to side

charge for addressing
envelopes for the

complete list (United States

big publishing and with them the
big military—which, he seems to

and

This list is revised
daily and offers you the

up-to-the-minute

•

tfken over by big business and

country,,

States

little

the

and

stake

own

immediate, special inSenator Douglas expressed his
fear that in the New Administra- terests, and a little more in terms
of our more enduring mutual intion
big government has been

investment

every

Americans

think

say that I do not
remotely that busi-

should lie down like

our

leaders

begun to realize their

Douglas of Illinois.

First, let

suggest even
ness

beside

ago—did leave many millions of dirty word.
And it's getting to
Americans with a
lingering suspi- the point where even the word
cion and distrust of
industry. This "capitalism" can be used in mixed
feeling has been expressed recent- company.
ly by such leaders of the New
But» more important, it seems
Senator

alphabetically

citizen —with

deed beside the tragic sacrifices, leadership

attltude of many Americans. The our people, has
fierce> iron-jawed tycoon, with his growing up.

Administration's

metal stencil in

Cities, and within

labels at

industry, agriculture

tional

the

in preserving an economy in
which the profit motive can ^opdepression—even though it erate. Most Americans no longer
happened more than a generation seem to feel that "profit" is a

Service

Department

can

iabor

on a foundation that
demands sacrifices and inconveni-

that in the

the

con¬

individual

that

than perhaps many of us appreciate do realize that any road to a
permanent and lasting peace can

and

all

think, furthermore, that this
willingness to take a long
view, to try to accommodate spepowerful,
cja^ private interests—whether of

shapes.

seems

for

basic

effort to preserve peace and free¬
dom can have a most

unifying effect

possible

way

cerned.

Their spontaneous reaction made
it very clear to me that a common

all

i6,?!-*ta"*10"s„ A'nd.in
these conflicts

resolve

best

long time.

reiegatedC to6 th^aslf'heaif

Com-

banking and brokerage firm

VVe

P"11 bls+ weifht m, the common

our

per

and philosophers have failed conIndustry has learned how great spicuously to agree on these
quesstake it has in a healthy welltions, and too much cannot be
us s.eeiP t0 be reacting
Tfmt Paid labor force and a high level expected of
the punch-drunk
any individual.
But
underdog
Underdog old
*»«. k® i™
P*
1 of emnlovment. When ™v srand- T wonld
employment. When my grand- I would like to suggest a few
tintype is broken.
surest
like
Suddenly wakes Up in the
a
few
And I think that businessmen in father put that rather obvious idea
rather general attitudes which I
Washington will tread very cau¬ into practice back in 1914 by feel can help business become a
tiously indeed to avoid any shred doubling the wages of all Ford more and more constructive force
of suspicion
that the Fair Deal employees, it was regarded as an in the national scene.

meeting

Addressograph

$5.00

Quite
safeguard our nation
obviously, this subject—and all and our *nends of the free world,
implications for our economy La™

d.e.ef^ significant change in the

what I had to say on this
subject
three weeks ago in
Chicago.

Our

„

cigar and top hat and his attitude

Mail your Annual
Report to the Investment

most

...

—

from every

women

severe

arranged

the national interest.
,
.^s a businessman, I am natu-

was not only surprised but almost
ama2ed
t
amazed
th
at
the enthusiasm with

century

people.

The fact that business has

°PP°rtunity reflects, I believe,

question of what's in store

appears to be the case

The crucial fact for
industry to
remember today
is, I think, that a

graph

not

national

lab°r> agriculture or industry—
lnsofar as ttiat aellcate subject of must, at least temporarily, collide,
„,Uh'
foreign trade and protective tariffs sometimes quite painfully, with
This

—would

nessmen.

day

would

the

farmers,
workers interest or even our own longmen of the professions—have
range interest,
begun to learn how much more
The simple fact is that in times
important are the interests we of crisis, like the
present, there
have in common than those which are innumerable
points at which
tend to divide us.
private interests
whether of

part of

wool No-Dealers.

have

which

necessarily advance

and

nessinen—but

sarily follow that they are going
to accept government jor busi-

Following the leadership of the
President, I think most of us to¬

but

company,
It

ences

the

fact? i could mention a good
things which would be very
welcome, for the short run, to our

only be built

in Florida.

American

has been replaced by the

for

But that might not be
the defense effort,

for

many

meet

them.

ready to try government by busi-

the

them

good

General Eihenhower

nickel.

Jacksonville, Fla., March 11,

Houses

Company, right now, if we could
iay our hands on a few more tons
of

Mr.

—

—might be best qualified to

were

not businessmen.
were

oppor-

new

are we

dangerous, I think,
generalize too readily about the

can

sLm°inglyCendless^asc^

nation to businessmen

_the

what-

hold for

may

with

role of business in 1953.

live

circum-

our

to build right along with

may

haM

things go
It could be

pessimistic ap¬

highway transportation. A million
for industry under the
Americans make cars and
parts; ical regime.

jaserce,

progress

dwarf

today,

A^eriScan?nhasUa fobTeTated^to
job related
has

timid

soned faith

automobile

xrable beast—the horse. But
Gftianks to the

Americans

proach to the future. We believe
the American
economy is going to
go on expanding, and we intend

Henry Ford, II

yith little

Who

the future

days
find

wrong.

thoughts and

Ford—reject, in

ing, any

Only fifty
ago this

-Tune,

allow

are

we—at

3-ears

businessman

sure.

ago when he felt free to roast

realistically aware of
the dangers which lie
ahead, but

this

many

these

one

hl_miSff:_l0.0k^g
nostalgia to the

looking

believe will

ress.

that

our

past achievements.

pretty much

pipped

our

focused

are

future

—a

of Ford

I wish I could

mentation

luxury

of ours,

sary year

us.

Mqfer Co.

the

at Ford

Administration9
/vaminisirauon.

'^13!- ° miltHfl "7a "Iw
peoples minds. Is that

most

suspect

own

along the

advance

flush of vie-

rosy

businessman's Administration

good?

out

backward in this Fiftieth Anniver¬

be in

for

the

paced

ourselves

progress
store

march

many

sobering thing.

very

lnniHntf

forward

whole economy.
Even though we

for.

car.

has

A time of real

*>eems to

Three

ever-lengthening American Road

'thankful

them.

last

Ameri-

businessmen,

what hap¬
November
became,

Whether rightly or not, the Republican Administration is tagged

serv¬

four American families

This

in¬

lot

xdea

sell

and

every

na¬

will

:idea

million-and-a-half

that

Businessman's
businessman s

another

Steven-

this

.«son,
tion

follows

party

constructive

think

reveal

19, 1953

—

A
a

that

was

people

strongly united on
basic objectives, although
perhaps
divided as to how these objectives

"What

after the first

economic groups.
state

glare

microphones
and
happened?"

election
can

stares

thoughtful businessmen

Warns, although we now have a
'"businessman's Administration," it does not
necessarily follow
that people will accept a "government for businessmen." Pleads
for mutual
understanding of business, government and labor,
and says it is duty of American business to
keep informed on
vital foreign and domestic
issues, and also to be fair to other
only fair to

and

He just can't take it all in.

progress

future American economy.

He blinks under the

mumbles:

champion.

first

new

ring lights and the thunder
applause. Then he turns in a

President, Ford Motor Company

nent auto executive
expresses

the

of the

By HENRY FORD, H*

wide-eyed at the still body of his

New Political Regime
Asserting "a time of real

ring

round to find himself the

Chronicle...Thursday,-March

duty of Amer¬

ican business to keep itself intel*

ligently- -informed
.

lss

an in P^^san ho
ignorance or mdiiie e

f t

day, so that it may dea
government on a bas s
understanding and r p

vital

the

foreign and.domestic:

y
,

y
.

believe

industry should be
moderate and fair in its dealings
I

with other economic groups, par-

ticularly

matters

which

are

vital to our national security and
economic stability.
A similar attitude on the part of those otheir

Number 5204... The Commercial and Financial Chronicle

Volume 177

the job

'groups will make

great

deal easier.
Let

should be deter¬

all these groups
mined

that

thought

the

add

and

solve their mutual

•

Union

will be applied to prepayment of
bank loans.
The balance of the

Sulphur & Oil

Debs. & Stock Offered
Public

offering

$10,000,000

relatively

gas.

small

propor¬

company's net income
proceeds will be added to the gen¬ is today derived from its remain¬

eral

funds

together

the

with

and,

company

cash

from

tions, will be available

opera¬

for

ing sulphur royalty and mineral
Gross

con¬

was

Herman

Dr.

brother

Sailing W.

interests.
revenues

from oil and

made yesterday

v£c'

Herman B. Baruch

tion of the

gas
^separate difficulties without run¬ 4% sinking fund debentures due
tinued exploration and develop¬ operations in 1952 totaled $20,981,ning to the government. The best 1978 and 101,000 shares of class A
in producing 224. Net profit for the year was
way
I know to guarantee the non-voting stock of Union Sulphur ment, investment
properties and leases, and other $3,068,110, equal to $4.43 a share
growth and expense of govern¬ & Oil

Corp.

(1233)

Benjamin Baruch,

Baruch,

Hartwig

Baruch,

March

Baruch,

and

the late

Bernard

the

passed

^way

of 80. Prior

age

to his retirement from the invest¬
ment

business

was

partner

H. Hentz & Co. He wjas ap¬
on
895,050 combined shares of
and (March 18) by two groups of un¬ corporate purposes.
The debentures are entitled to class A and class B stock outstand¬ pointed Ambassador to Portugal
agriculture to out-vie each other derwriters headed by Smith, Bar¬
the benefit of an annual sinking ing.
in 1945 and served as Ambassador
in pursuing its help and its favor,
ney & Co.
fund beginning in 1956 which is
Dividends are currently paid at to the Netherlands from 1947 ten
The debentures, which repre¬
■j. Next,
I believe that business
calculated to retire 66% of the
z
the annual rate of $1.40 a share. 1949.
should take the long view, avoid¬ sent new financing by the com¬
issue prior to maturity.
Last year $1,38% a share was paid
W't i..
ing the easy advantage which robs pany are dated March 1, 1953 and
Union Sulphur & Oil Corp., or¬
in dividends.
us of tomorrow's progress.
Black due March 1, 1978 and are priced
First California Adds
ganized in 1940 as successor to a
markets cannot grow, controls and at 100%
plus accrued interest. The
company formed in 1896, is prin¬
(Special to The Financial Chronicle)
regimentation have no place, in class A stock, which is being ac¬
Italo Conte
cipally engaged in acquiring pros¬
an industry which steadfastly re¬
LOS ANGELES, Calif.—Joseph
quired by the underwriters from

ment

industry, labor

for

fuses
a

sell

for

future

the

out

quick and easy profit today.

Support National Policies Which
Serve General Industry

pective

certain

and

proven

oil

and

gas

selling
shareholders,
is
properties, in the development of
priced at $54 per share.
Of the net proceeds from the such properties and in the pro¬

sale of the

debentures, $2,284,213

duction

crude oil and

natural

Italo

Aekerman
York

Conte,
and

City,

was

partner

Company,

found

New

dead

March 15.

Kudzia

has

First

with

Incorporated,

affiliated

become

California

647

Company

Spring

South

Street.

should
just lip
service, to sound national policies
that

believe

real

lend

which
For

industry

not

support,

industry as a whole.

serve

example,

with

look

can

sympathy on the manufacturer
who is fighting for tariff protec¬
tion against imports which
are
really damaging him. Ideally, I
believe he should first search all
avenues for selling his products,

developing new products
could sell. But I feel
that the manufacturer who seeks
for

which

♦

i tariff

ijh

Beneficial Loan Corporation

protection out of a greedy
a closed market, or out

desire for
'

♦

danger,
:

course

pursues * a

harmful

positively

foreign policy.-

our

Government'

With

•

Finally, I believe industry can
and should cooperate Closely with
the government in furtherance of
national goals in those fields in
which
industry
has
particular
;

~'t

•? -v w.

••

7-Where Business Can Cooperate

the interest of our whole economy

<and of

and Subsidiaries

groundless fear, of a non-ex-

istent

which

•:

Report

L<Xoam
ftSY$ftw
RESULTS

competence.

GLANCE

Such efforts might include: re¬

the

which

hold

technologies
promise

new

such

1952

1951

$12,632,220

$12,479,331

3,444,898

3,222,293

$3.62

$3.80

$2.10

$2.00 (a)

great

of
industry with 'governments both

■

for the future; the cooperation

abroad

at home and

the free world with an

to provide
"

and finally, imagina¬
tive private action programs to
strengthen the free world by ex¬
panding world trade, increasing
American investment abroad,
expansion;

fostering private enterprise prin¬
ciples and practices overseas, and
aiding the economic growth of
underdeveloped areas.

sounds like a
fairly heavy course to swallow on
top of that wonderful lunch.
that

Perhaps

might

somewhat
think

made

it not

Eighth
Consecutive

sound

its

for

low-cost raw
economic

flow

abundant
materials

programs

Common Shares
Net Income per

Year

Progress

Cash Dividends

«'

Common Share
paid

Average Balance

Common Share

per

$277,630,328
$232

710

(a) Plus dividend of 5% in Common Stock of Company
declared in 1951 and

paid in 1952.

The information contained herein should be read in conjunction

with the financial statements and notes

appearing in the 1952 Annual Report to Stockholders, a copy of which will be furnished upon request.

chore, nor as a pious wish, but as
a
stimulating challenge to busi¬
some

This general

approach under the
one,

I be¬

lieve, which makes sound business
sense.
And when you are in a
position to further both your own
those

and

interests

Behind Beneficial Loan

Corporation's record of service and

achievement stand

than 22,000 stockholders who

faced.

ever

Administration is

new

can

of the toughest prob¬

lems mankind has

;

what

show

ness

solve

world

for this business

to carry on

furnished the risk' capital

its important work of helping the family,

The 755 offices of the Beneficial Loan

System in the United States and

in serious trouble—that is what I
call

real

opportunity

and

Canada make small loans to hundreds of thousands of families

enabling them

really enviable position.
The situation confronting Amer¬
ican

the

superiority of the

financial emergencies

without hardship and without loss of

given

ness,

straighten out

beneficial purpose,'*

American

chance,

fair

some

difficulties

present

personal dignity. "A Beneficial Loan is for

of the ability of busi¬

and

way,

lieve

now

have

that

talk

into

of the world's

and

correct

its ancient evils.

many

put

to meet

business

today seems to me
just about as simple as this: For
years we
have talked glibly of

I be¬

chance

action

—

DELAWARE

WILMINGTON,

challenge above and beyond the
call

business-as-usual.

And

for one, will be deeply chagrined
if

and

fail

meet that

Subsidiary Loan Companies: Personal Finance Company
Lincoln Loan Corporation

Beneficial Finance Co.

Consumers Credit Company

...

Commonwealth Loan Company

Provident Loan

and

Savings Society of Detroit

Workingmen'S Loan Association, Inc.

challenge

give it all we've got.

$224

755

■i

$250,482,062

Note Receivable

Number of Offices

unpleasant

Outstanding

Instalment Notes Receivable

appear
if we

digestible
as

Net Income

W4}j4

<V*

■

•

The Commercial arid Financial Chronicle

(1234)

Continued

from

page

.'and

California.
estimated

are

Bank and Insurance Stocks
By

This Week

Bank Stocks

—

York City banks for the first
quarter of the current year to be published in about two weeks
are expected to show an increase of between
5% and 10% over
the corresponding period of 1952.
,
This

earnings

New

continuance of the upward trend

represents a

ings which has prevailed for over two years. Generally it reflects
operating conditions present in the economy as
result of the growing demand for credit accommodations

b,y cor¬
porations and the return to a more flexible monetary policy as
evidenced by a firming of interest rates.
These conditions

have enabled the New

York

banks

show

gradually expanding
consistently quarter

operating results with earnings improving
by quarter.
Adjustments necessitated by
changes in tax laws or special accounting practices, have obscured
the improvement in some cases when specific comparisons are
made.
Nevertheless, the basic factors have continued to operate
with

the

result

highest for

first

time

earnings

quarter

for 1953

be the

may

years.

with

number of

banks will be confronted

re¬

for

the

problem of how to handle the provision for
possible excess profits taxes.
While

1951

1952

and

only

one

two of

New

the

York

banks had to

provide for excess profits taxes, the rising trend of
e&mings has brought several other institutions to a point where
they might incur such a liability in 1953. An additional compli¬

cating factor is the possibility that' E. P. T. may be allowed to
expire on June 30, as is now provided by law, and to compensate
for the loss of revenue, an increase in the corporate tax rate may
How the various institutions provide for such possibilities will
in

large part determine their earnings for the quarter. As a gen¬
eral rule, it has been the usual
policy for most banks to be con¬
servative in such matter in order to obviate a
larger charge
against earnings in subsequent quarters.
Regardless of this, how¬
ever, it seems that an average increase in operating earnings of
close to 5%

is the least to be expected for the current period.

The two most dynamic forces
in

operations in

level of loans

the

bringing about

situation

current

the

are

outstanding and the increase in

has taken place
in

So5 far

within the past

1953

there

cline in loan volume.

has

improvement
in the

expansion

money rates

which

only a moderate seasonal de¬
In fact since the end of 1952 business loans

have declined by less than $100 million
and have actually increased irr each of the
past two weeks.
Be¬
cause they started the
year about 10% higher than in 1952 they
close

now

further

pected

seasonal

March, the

$700

million

liquidation

above

loans

ago.1

year

While

some

by the end of
of loans outstanding for the quarter is ex¬
7%-10% above the corresponding period of a
may

occur

average

to average

year ago.
money

rates, yields have continued to

rise

over

past year and have increased the overall

return on earning
Although the prime loaning rate at New York City banks
has remained stationary at 3% for over a
year now, there has
assets.

been

noticeable reluctance to grant the prime rate to

applicants

12 months ago.

tomers accept a higher rate.
down

along

the

line

many

This in effect has made many

cus¬

Similar adjustments have been made

other

credit

risks,

been raised.

The increase in the Federal Reserve

significant because the

was

term

loans

discount

rate

rate of

number of

directly related to it.

are

Treasury

raised

the

securities

interest
also

are

rate

larger loans but the return
result of the

The net

Increasing
tax

upon

the

re¬

number

remaining holdings has improved
-

changes is that

absorb

may

large burden with final

gross

operating

A 20%

time

present
feel

that

tain

20%

case

savings

sonable

rise

reserve,

take

care-

should

the

rea¬

market

buying opportunities
individual security arise.

remainder of the funds is to

placed

shares.

moil

have

selected

well

corn-

It will be ndted that

included

folio.

For

this

neither

type

account

neither of these groups of securi¬
ties
appear
fitting.
High-grade
bonds

would

serve

preferred stocks, except

tain

convertible

tion

should
and

year

earn¬

but pre¬

course,

operating earnings

will

dependent

liability is made.

City

National bank

Bank Stocks

of INDIA. LIMITED
Bankers

A Ten-Year
on

Survey
Request

Laird, Bissell & Meeds
Members New Tork Stock
Exchange
Members American Stock

Exchange

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

Teletype—NY 1-1248-49

(L. A. Glbbs, Manager Trading Dept.)

Specialists in Bank Stocks

the

Government

Kenya Colony and Uganda
Head

Office:

26, Bishopsgate,
London, E. C. 2
.

Branches

in India,
Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

-■

•

Authorised Capital

£4,562,500

Paid-up

£2,281,250

Reserve

Capital
Fund

£3,675,000

The Bank conducts every description of
banking and exchange business.

Trusteeships and Executorships
also

undertaken

1952
close

run

next,

The

and

then

combination

the

potentialities
the

medium-term

time

same

while

providing

of apprecia¬

possibilities.

of the

than

resistance

average

clines

should

de¬

remembered

eralized

that

this

portfolio. The

investor

needs

gen¬

individual

While

rities

all

the

selected

among the leading com¬

are

panies- in

their

respective

fields

it is

each of the individual issues.

the

potentialities

time to give

same

reasonable

should

him, within

limits, maximum

and medium-term
account

but

near-

possibilities. No

static.

Any

portfolio worthy of putting money
into is worthy of being followed

continuously and changed accord¬
ing to changes in conditions. Ac¬
tually, the longer term potential¬
ities

the

securities,

industries they represent

all,

are

individual

opinion, above
hand, the

On the

average.

other

and medium-term potential¬
ities of the companies also appear

near-

considerably better than
Representation in the

average.

important chemical division is
achieved through American Cyanamid which also gives participa¬

part

the

drugs, and through'

worthwhile, at this point, to

make

Allis

producer

in the

share in

and well
its

neighborhood of $8

basic position

expires

does

not.

materially

the past few years

over

strong

permitting

earn

share in 1953

Profits Tax

over

improved
a

Chalmers

1952 and could

if the Excess

and

major

Allis

approximately $10

With

machinery field

equipment,

earned
per

leading
electrical

important producer of de¬

fense

heavy

well

factor in the farm
and

comments

Chalmers—As

equipment

financial

position

continuation of the

conservative $4 dividend rate, the
issue is attractive as a reasonable

growth situation granting

high

return.

Cyanamid

business

While

—

conditions

the

Company,
and
ethical
drug fields
which also gives participation in textile
during the first half of 1952 com¬
the rubber
industry.
bined to pull down the earnings
While
the
near-term
outlook
of
this
leading
chemical and
for
of the oils does not

many

ap¬

pear

ural

gas

particularly outstand¬
ing, Phillips' position in the nat¬
field

strong

feel

worthwhile

investor

his

oil

and

great that I
to

give

the

representation

through this medium. The import¬
ant

electronics

field

and

partici¬

pation in further Atomic develop¬
can
be
achieved
through
Westinghouse Electric, the second

largest

ethical
share

drug
in1

the

circumstances

for

1953

still

and

remains

Climax

Molybdenum

most

dominant

growth

Federated

uranium,

Climax

which will insure

through
rate

through its

$2.25

setup

its

Fedway

Stores

di¬

vision.
The

trend in retailing

railroad

outlook

the

railroad

field

pre¬

difficulties

out of the nature of

Western

its

has

rising trend of

been

earn¬

handicapped

certain litigation which should be

disposed

within the

one

way

another

future. This may
permit retirement of the preferred
near

stock and greater
the common
—

granting

attractive.

good
Two

participation of
hence, the issue,
return,

appears

specialties

are

also
included—one, Allis Chal¬
mers,' with its important position
as a
supplier of heavy equipment

profits

$4.90

pany

through

ran

Last

around

reduced

were

active

very

1962.

which

share,

through

campaign

run

and

$7 in

per

increased

1954

which could

and

the

fact

the

that

strong

financial

permit

further

present

expansion

dividend

Federated

store

chains, the

stands

ing

should

the

smaller

sized

being

leading

trends

shares outstand¬

common

much

mod¬

Furthermore,-

since

t he

are

Value,

any

selling well above book
new issues should con¬

tribute*

more
proportionately to
earning power than to number of

outstanding. Thus,

medium-term

future,

over

the

strong up¬

ward trend from the present earn¬

ings

level1 of

seem

reasonable, with

about

$1.20

would

eventual

increase of the dividend from the

present 90 cents to $1 level.

Phillips Petroleum—One of the
few major

integrated concerns in
industry to increase its

oil

earnings in 1952
share

per

tinues

over 1951
($5.17
$5.11) the stock con¬

vs.

attractive

this

time

longer term basis because of its

large

gas

reserves

41%

the

proportion

total,
of

the

fchy

its

steadily

gas

total

for

account

highest

the

With the price

concerns.

natural

reserves.

gas reserves

major

trend of

rising

with

increased consumption, the longer
term
benefits of these
reserves
should

considerable.

Western Pacific

gation

against the com¬
decided
in
Western

and

pany

Pacific's

Railroad—Liti¬

pending
favOr

two

pending

now

sion

may

available

Company has set aside
of $10
the

the

deci¬

shortly.
a

reserve

million in connection

suit.

litigation

o w e'r

Supreme Court, and

Disposal

will

retirement

the

pave

this

way

for

the

company's $5
participating preferred stock,
which

since

acted

current

the

could

from

the

and

Company's
and
are

above

present

rise

both

this

cases

before

participation.

financial
properties
in

capi¬

S10

$8.90 reported for

preferred stock

good,

a s
liberalizing

dividends

$3 rate. Earnings per

based

talization

1952,

eorganiz^tion h

stock

common

-year

brake

position
and

excellent

Westinghouse

equip-

condition.

The

Electric

—

The

second

largest
of
the
electric
equipment manufacturers, West¬
inghouse increased its earnings in
1952 to $4.23 a share from the
$4.03
of

the

preceding

Profits

for

1953, but

Demand

the

chain-

Excess

year.

equipment will

department
constructed

growth

Despite

—

growth

Island

not only
the good

from

—

department

concern

outlook

profit

top

should

erate.

the

rate

Stores

the

benefit

detail trade

now

Dept.

largest

ex¬

would

shares appear to be well situated.

third

1951,

Lighting's re¬
share earnings have been
relatively stable levels,

tions to

company's .ment

position

shape so1 that while the strong
growth trend will require sizable
capacity expansion, future addi¬

further

for

the company's policy for
improving its capital structure by
large issues of common stock. The
capital structure is now in good

the

re¬

then

indicated

re¬

$4.50 to $5

Long

held
due

ore

to about

reasonable expan¬

<•

These costs will not be

peated this year and profits may

compared rwith

Long Island Lighting

with

and

favor¬

now

pires.

fund

opera¬

in¬

especially
if
the
Excess
Profits Tax, which cost the com¬

con¬

capacity

1955,

profits,
a

firm

tire

1953,

arising be" continued in
1955. In view of
the industry.
these relatively assured earnings

Pacific, with tremendous
improvement made in its proper¬
and

year's

serves.

currently

that

Government

materially increase broken

is strong* The selection of securi¬
ties in a longer term growth ac¬
certain

has

leading

and

are

courts,

molybdenum,
as
important producer of

tions

the

—

rubber

prospects

By far

—

high

new

issue,

factor

while

the

strong,

Stores,
place in a

this.

sion1

growth trend

rather well below its recent highs,
is again worthy of accumulation.

Department Stores, a leading de¬
partment store chain, is capitaliz¬
ing on important population shifts

ings,

the

tracts with the U. S.

tremendous

these

betterment in

some

tions

ties

Under

well

the

improve¬

and

Island

territory;

the

felt that

now

way.

earnings is indicated

production

its

$3.07

the concern's

a growth utility,
Lighting appears to
interesting possibilities in

past

$4.04

it is

under

the

participate in

from

year

worst

ment

producer

1952

preceding

company in the electrical
appliance and
equipment field.

offer

$7.60

the

American
poor

Goodrich

brief

some

this,

Fedway

deserves

in the

cent per

secu¬

'$8.15 in 1951, but present indic&-

sales,
Component Issues

chain,

Goodrich

where

one

The

issue

dustry with strong diversification
in
chemicals, Goodrich permits
participation in a cyclical industry

treat¬

ment.

this

able and in the important chemi¬
cal- field. Earnings in 1952 were

income.

Conversely, the quality
shares could provide better

profits

increased

reasonable

The
portfolio is designed not
only to provide the investor with

term

factor

the

new

issue

B. F.

securi¬

for

portfolio such

a longer-terrti
possibilities over

favorable

attractive

the

con¬

over

but

Excess

these

expire,

further

with

the

As the yield of close to 6%

the

in¬

ties selected should not only give
the
investor
substantial
growth

cer¬

preferreds, couldl

Should

quality, especially in view of the
.growth
possibilities
existing iq

sharply

further

purpose

and

offer little in the way

which

this

temporary reac¬
bonds:
tionary market set in. It must! be

preferred stocks in this port¬

nor

view

gain

Taxes, of

in which the provision for this

17 N. Y.

Tax
be

year.

Molyb¬

tinued at a relatively high level
through5 19621 Both deserve posi¬
tion in a portfolio such as this.

con¬

sents

„

cash

weakness

any

The

should

purchases

place

market,

placed temporarily

banks

additional

take

the

moderate

this

portfolio

count

Sell

Cash Reserve

To accomplish these ends at the

part of the

previous periods.

IS#

return

realized

Climax

denum, with its relatively insured

crease

Long

Some variation in individual bank
statements based upon the
type of operation and the foregoing factors will be
evident the
overall showing for the first
quarter however, is expected to be
favorable in comparison with

Bulletin

ment

more.

favorable rise in the first
quarter.

expenses

manner

rises.

holdings to accommodate

earnings should nevertheless increase.

remain

large outstanding

higher yields.

effect of these

ings should show

rediscount rate

other words
also

yielding

banks have reduced government
security

reasonable

and should

the prospects here so

Some of the other money rates in New York City have also

earnings,,

desired

tion in ethical

Concerning
the

Nonetheless,

and

year.

been

at New York City banks

are

The other is

rial.

1951.

Profits

expanding utility industry
and its production of war mate¬

longer

instituted.

have

to the

quently, is secondary to the longer
appreciation potentialities.

special adjustments could modify the reported

in fact

And

first

quarter in the past several

any

Of course,
sults.

that

acquire capital. Income, conse¬

term

earn¬

the favorable bank
a

$3.53 in
could

major recognition in the attempt

Operating

Earnings
to

'to $4.25 a share as compared

Poztlolio Planning

E. JOHNSON

Thursday, March 19, 1953

.;.

cities

stores

the

Texas

the

1953
two

Taxes

cost

the

$0.75

equivalent
for

its

heavy

company
a

share.

electrical

continue through
probably for the next
years, while the upturn in
and

demand

for

appliances, in which

Number 5204

Volume 177

The Commercial and Financial

(1235)

Chronicle

(or of any predicted production would
will recall start falling off in the third
that the current year's prospects
the classic definition of their quarter.
But the uninter¬
are good. The company has under¬
taken major work for the atomic functions, that is: to mark the rupted flow of orders for fu¬
and flow of prices.
energy program including the de¬ ebb
As ture delivery has altered these
the

field

has

company

been

ex¬

Jones

averages

indicates market

position,

its

panding

[The
article

long as new high marks are views to definite, but not un¬
bridled optimism. Removal of
for
participation in the longer being registered, the tide is
controls is enabling the steel
term prospects of electronics and coming in—and vice versa. In
atomic development.
the markets of pre-SEC days, companies to sell unallocated
when the stock averages steel for delivery in the third

time

highs
seldom before.
:|:
produce more than a ripple of
Recent caution concerning
follow-through.
The waters
of speculative interest usually the rails because of the pos¬
recede, are quiet for a spell, sibility of wage boosts for "inBy WALLACE STREETE
then gather strength with the creased productivity," has
next wave of buying. The ac¬ been softened by factual ar¬
Like a slow, incoming tide, tion on selling days has been gument that these increases
It is to be believed, might be offset by lower wage
the
stock
market
demon¬ similar.
strated last week that it was however, that with a more payments due to cost-of-living
escalator clauses, by greater
no
longer in the ebb that had friendly ear in Washington
new

toward the securities markets,

since

early January, and that

gradually eroding

was

sistance between it

and

re¬

new

high-water marks.
As has
happened so many times in
the past, the technical
strength of the markets has
been

highlighted by bad

when the

was

down

sive interest

that will go

American and

again the tensions

the

for

sjs

❖

and Feb. 10 for the Rails. Co-

existing throughout the
Volume indications in stocks
in
1952 both
world. In the face of this, the incidentally,
continued favorable with
stock markets did little more averages made their lows of
slowing to a walk
than recede gently and the the Spring readjustment on trading
when prices eased, and the
volume on the decline was lit¬ Feb. 20. It is apparent, these
tle more than a ripple. The past two years at least, that tape coming alive during the
same
was
true late Tuesday technical factors such as sell¬ periods * of advancing quota¬

plane "inci¬ ing for tax payments, and
of
profit-taking
reported off carry-over
have been largely responsible
i':
for the let-down
in prices.

another,

when

dent"

was

Alaska.
s'i

motion

set

ground swell Margin reduction should not
February 20 take the credit for the turn¬

forward

The

The stock market has

about.

market

Significant, too,

action

the

averages

this

slightly calmer action, but on
Friday the steels stirred the points while this year the re¬
surface and on Monday the cession was 12.65 points. The
rails

were

riding the crest. At

rails lost about the same num¬

to The

Dabney

their

highs of 293.79, light

recent

and the

practically through their last
closing high of 112.53. During
the

session

the

averages

touched 291.78 and 112.80.

The

metaphor of the tides

particularly applicable to

the stock market of the

week

because

tableness
Each

of cautious

statements

of
its

past
inevi-

with an abyss
the
stock
movement. wonder

day there seemed to be

hesitant.

an¬

beyond. No
prices were

The wonder is that

the beach, wash¬ they did not decline further.
sjs
sfs
SH
ing out the resistances that
The steel industry is a par¬
had been established previ¬

progress up

ously.

Students of the Dow-

ticular

example. Some leaders

Baldwin, White

Jr.

Drummond has become connected

Baldwin, White & Co., 30 Federal

with Townsend, Dabney &

Street,

335

Water

Tyson,

Boston

the

members

Stock Exchange.

Street.

WHAT DOES THE

PRESIDENT THINE?

IggSkk

Would you
ments

listed

like to discuss, man to man, the latest develop¬
particular industry with the president of a
company?
in

Most investors

readers of THE

would—and that's why

EXCHANGE

Magazine look forward each month to an
article by the chief executive of a prominent cor¬

exclusive

poration. These timely and authoritative pieces—which
supplement statistical and stock market studies written
by the magazine's own staff—are signed by men like.;:
H. E.

Humphreys, Jr.,

•

y
'

President and Chairman, U. S. Rubber

Paul W. Johnston,

President, Erie Railroad

77 -

Continental Oil

L. F. McCollum, President,

-7.

Attention
than

Grades

Gwilym A. Price, President, Westinghouse Electric

stocks of less

Walter P.

Marshall,

top grade becomes more

marked

bull
ahead. Low-priced
the

President, Western Union Telegraph

current

have led the advance

for the

Comparatively

have

action

All these leaders authored articles for past

EXCHANGE

issues—but THE

Magazine doesn't stop with the views

presidents. Bankers, newspaper editors, security analysts,
and

even

churchmen share their ideas with you.

IN THE MARCH ISSUE

another

president, John

Collyer of B. F. Goodrich, explains what chemical
research is doing for investors in the rubber industry.
Favorite common-stock investments of endowment funds
F.

Harvard, Yale, Columbia, and Princeton are

some

stock

listed.. .all these and
tors

disclosed.

turnover and price behavior,
odd facts about odd lots, a colorful new stock just

Penetrating articles

more are

"must" reading for inves-i

in the March issue.

been the leaders in re¬

cent

tinue

and

hold

should

con¬

this- position

are

$1.00. You 11

ing a bit better, whether
you're new at investing or
lar

old hand. Enclose
bill

coupon

that the summer

rise

stock

may

come

than usual this year,
cause

tion

of strong

earlier
and be¬

technical posi¬

and investor

confidence

dol¬

check with the

below.

~1
THE EXCHANGE
20 Broad

Enclosed is $1.00
Send

Magazine, Dept. C.

Street, New York 5', N. Y.

the

(check, cash, money order).
issues of THE EXCHANGE.

next 12

steady advance. Indica¬

tions

SUBSCRIP¬

understand what's happen¬

Barring

their

TEAR'S

TION for only

global war (a
phrase that has become a part
alysts early in the year. Many
of all market comments) stock
were agreed that the first six
months of this year would be prices as represented by the
D. J. Industrials and Rails ap¬
good, but few could see be¬
pear to be headed for higher
yond that point, and many
levels, and the Utilities, al¬
predicted a slide in business
the latter part of the year. It ready in new high ground
was
like being on a plateau since 1931, should continue

rails-at 112.03 were from business and market

Exchanges.

BOSTON, Mass.—Roy E. Jones,
has
become
affiliated with

Financial Chronicle)

Maine —Prince

AUGUSTA,

ber of

San Fran¬

and

(Special to The Financial Chronicle)

points each year. This along with other issues with
Tuesday the D. J.
low price-earnings ratios and
Industrials were at 290.64, action is even more impres¬
sive when considered in the high yields.
within
*
*
striking distance of
the

York

President, E. I. du Pont de Nemours

Below the Top

in share year with last, is the smaller
few steels or rails are to be
accompanied decline in 1953 during the re¬
found in the portfolios of the
Next day saw adjustment period. In 1952
the industrials dropped 16.91 fiduciaries, yet these groups

surge.

Joins

With Townsend,
(Special

members

Montgomery,

New

Stock

Crawford H. Greenewalt,

transactions that
this

the

cisco

Sutter Street.

sjs

i'fi

past six years.

increase

the

was

for

check

month.

Street

tions.

(partly by the reduction in
tide surges
margin requirements) did not many strong underlying fac¬ common stocks have scored
flatten out for long. On Wed¬ tors that have been discussed
here
and
elsewhere,
and, gains relative to the high
nesday, March 11, it swept
grades since the year began.
forward with renewed vigor having completed its technical
This is only logical since the
and set a mark of 288.02 in correction of the rally follow¬
"favored fifty" (a term which,
the Dow-Jones Industrial ing the elections, is ready to
like the "400" of Society, is
averages, erasing the 285-87 go ahead. *
*
*
applied to the leading issues
barrier which had held the
selected by investment trusts)
Pertinent in comparing the
than

Calif.—Emil

❖

These two reversals in

Industrials for all of '53.

Programs, 41

to the fore

staff

Joseph A. Richardson is now with
Schwabacher & Co., 600 Market

has been added to
Managed Investment

Banjavic

the

'last

FRANCISCO, Calif.—

SAN

Financial Chronicle)

to The

(Special

year, gave further en¬
Looking back a few weeks,
can be seen readily that the
couragement to the rising op¬
plane by the Reds cre¬
timism about good business
uneasiness and brought present bull tide started Feb.

ford & Talbot..

Programs

SAN FRANCISCO,

ports from retail trade that
volume was running ahead of

Bull Tide Started Feb. 18

rillo in the past was

(Special to The Financial Chronicle)

Investment

long way toward restoring vi¬ thinking were in part respon¬
tality to capitalism in our sible for the leadership as¬
serted by the steels last Fri¬
country.
i'fi
sjs
day and the rails Monday. Re¬

news.

Street. Mr. CS&tf
with Hanna-

400 Montgomery

the

With Schwabacher Co.

operating economies, and by
*

any

presented

are

FRANCISCO, Calif.—Ale¬

jandro Carrillo has become affili¬
this ated with A. R. Nowell & Co.,

of the author only.]

aggres¬ accelerated amortization.

by investors and

And

traders.

see

shooting

British
ated

shall

They

those

(Special to The Financial Chronicle)

SAN

With Managed

...AND YOU

controlled its movements

with

coincide

those

pushed through to new highs, quarter—in other words they
there was an inrush of orders, can go after business which
almost a veritable tidal wave. they were unable to handle
Today,

not

Chronicle.

expressed in
necessarily at

views
do

Joins A. R. Nowell Co. ~

vigorous than

in recent years.

The issue is included

THE MARKET

Administration,

new

could be

atomic engine for

signing of the

submarines.

the

averages)

Name.

Address.
.Zone

State.

The Commercial and Financial

(1236)

,|E

Continued

jrom

page

Chronicle
Thursday, March 19, 1953

...

reliable

correlation

between

commodity prices in general and
the

Railroad Securities

Stock Market
Republicans
reduction

little

difficult

credit

looked

granger

ufactures

every
every

the

investor

Atchison,

rail

present

day
of

stock

common

Topeka

analyst

Santa

than

upon

they

60%

for

account

now

from

the traffic

aspects

annual freight
the terri¬

of total
Aside

revenues.

torial

and

voters

realize

that

those

pic¬ Eisenhower

can

than

realized

1951.

reduction. From the President

earnings dipped modestly from
down, the Republicans cannot af¬
ing in the same general
$13.83 in 1951 to $13.29 in 1952. ford to have the
people believe
irange
as
Pennsylvania Railroad On their face these figures might that their
party is merely follow¬
common. Yet,
it is all true, and not be considered too inspiring.
ing in Truman's footsteps. If Ad¬
with Santa Fe common climbing The earnings drop, however, was
ministration
leaders
in\ the
dose to the $200 level equivalent more apparent than real. The 1951
Cabinet fail to achieve large sav¬
for

the

old

stock

sell¬
price

was

rail

most

net

income had

been

inflated

analysts still consider it attractive. the extent of $3.25 a share by a
Of course, it is well to remem- tax credit. Far more important
txr that there

reason
than reported figures are the in¬
investment dications that operating efficiency,

valid

was no

>*/rhy this high grade

•dock should have sold

low

#1 did in the first place. Santa Fe
4s one of that select group of
roads

that

which
turn

never

its

back

before

goes

the

history,
the

and

the

both

pre-tax

continued

transportation

profit margin,
improve. The

ratio

pared

was

another couple of points.
All indications in early returns

again shall we allow a
depression in the United States.

taeen

century,

some

than

two

three

since the beginning of the
century in which the company
iailed to pay some dividend on
years

stock.

33.4%

taxes

increased

30.6%.

$1,000,000 but
come

rose

Federal

than
at that net in¬

even

nearly

income

go broke.

nation such

bilize

24%.

Ihe

better

the

credit

«*nental

road's

funda- look

investment

and

the

over

balance

the

particular,

is quite favorable, with the
uncertain prospect for this year's
wheat crop more than balanced
by the large carry-over from last
year's bumper harvest. (Even on

41 has gone in heavily for dieselissation of road service as well as

the present regular dividend rate
of $5.00 annually the stock gives

dature in the past 10 to 12 years.

fSanta Fe has spent lavishly on
dfoe properties and on new equip¬
ment in this period. In

<r '■

yard operations. Even with respect
the new equipment most of this
program has been paid for out of
-earnings. Equipment debt is no
more

than

nominal

*30n-existant

and

the

will

course

than

fceen

retired

and

all

paid off in cash

vwere

<9ue. As

gesture,

the

established

provide

maturities

they

came

company has now
retirement fund to

its

for

remaining

non-

callable issues, both of which ma¬
nure in 1995 and carry 4% cou-

Even with all of the money
has been spent on the prop¬

}K>ns.

%rat

erties and
company

~teuild
an

debt retirement the

has

still

what

been

able

be accepted
impregnable cash position.
up

Earnings

may

have

soared

the

since the outbreak of World
War II. In part this has been due

years
3

naturally to the expansion in the
territory served. The road oper¬
ates

where the popu¬

area

lation growth has been most dy¬
namic and where, also, there has
'tween a strong trend toward in-

idustrialization.

that the

can

return,

seems

1953

final conservative debt

generous

sidered, and it

Morton A. Cape With

third in the years
callable debt has

All

1941.

quality con¬
quite likely
year-end will wit-*
ness a more liberal extra than
tfcq
be $0.75 paid last year.

•couple of years. At the same time,
iaon-equipment debt has been cut
•*dnce

that

longer

Gotten, Russell Go.

the

ize all

Ex¬

change,

Industrial Production

Industrial

Morton

production in

scored

pect

further

some

that

Janu¬

gain.

the

over

Pros¬

few

months, at least, the Federal Re¬
Board's index of production

serve

will hold close to this lofty level.

Many

observers

outlook for

the

fear

second

that

the

half year

is less favorable. That may be so,
but

substantial decline in

gen¬

eral business activity seems out of
the question over the foreseeable

Cayne is

now

their

firm.

Mr.

Cayne has
cently

Looking into 1954, the would-be
pessimists claim to foresee a real
depression. Their fears

are

based

mostly on these premises;
(1)
That defense spending, and plant

re-

ment

invest¬

business

in Cleveland
as

Morton A. Cayne

Cayne &

Co. Mr. Cayne
is an active member of the Cleve¬

land Security Traders Association
and the National Security Traders
member

the

Secretary
executive

council,

Guaranteed

J. W. Bryan Opens

Railroad

(Special to The Financial Chronicle)

engaging in the securities busi¬
from

(3)

That

new

offices

608

partial

offset

cement

stocks.)

far as the stock market
itself is concerned, some letdown
in volume of industrial
produc¬
tion might well serve to eliminate

the worry
it is said
as

probably
with
of

about it. As
that

some

Bethlehem
earn

operations

capacity

capacity.

sample,

companies

Steel

New York 4, N. Y.

(Special to The Financial Chronicle)

Telephone BOwling Green 9-6400
Members Nat'l Assa Securities
Dealers, Iae.

CLEVELAND,
L.

McGhee,

Ohio

—

Norman

the

years

so.

whole span

I refer to the

Washington

can

mobilize

can

foresee the signs
recession, any depression
that would put honest, hard work¬
ing men and women out of work,
any

Of course, over the
of years since 1939 it

that

true

stocks

barely

with inflation.

pace

ment
then

accepted

now

of years

kept

If that state¬

face

value,

stocks must be very

common

cheap

because in that period

there has been

provement

within the

themselves

due

companies

the

vast im¬

ploughing

back of

earnings, development of
products and new markets;

facts.

stock market has
opposite direc¬

tion to commodities.

has made

that

new

yet, the stock market in general

recognition of these

Industrials

group

are

really low in relation to earnings
and in relation to dividends.

the full power of

certainly

dynamic economy.

ket boom in

without any
modities.

history, 1924-29, was
help at all from com¬

Inventories
Another

has arisen

the likelihood of

point to bear in mind
with

connection

the

stoppage

of the rise in commodities is that

the

most

arguments

unions

labor

their

the
for

pleas

higher wages have disintegrated.
Hence, the potential danger to
earnings through an eternal wageby $y2 billion.
That is only a
price squeeze has come to an end.
moderate increase and at the end
Farm price supports are manda¬
of the year the total of these in¬
tory until the end of 1954 under
ventories
was
up
only a little
present laws. Moreover, regidities
from
a
year
earlier.
However, in labor and taxes which
comprise
any indication that output may be
the main fabric of prices would
exceeding
consumption
always seem
to
rule out
any
serious
raises the question as to how long
threat to the general price struc¬
production

continue

can

such

high rates.
special

opinion.
ers

future, this is of

significance,

Automobile manufactur¬

and

home

builders

are

pre¬

paring for excellent business this
Some added, selling effort
be necessary to absorb the
output but they are ready to make
year.
may

those

added

efforts.
Also, they
ready to cut back their
operating schedules when sales
and
inventory
figures
indicate
that procedure.
One thing seems
will

rather certain in this part of the
tion

will

almost

bears

business

the

and

stock

they

earn

There

bearish argument

is true that

at this time.

about

years from their 1951
The all-commodity whole¬

index

sale

Sensitive

ities

Jr. has joined the stantial depression in the
second
staff of McGhee &
Company, 2587 year of a new Republican regime
East 55th Street,
would be a political disaster.

fallen

about

material

group

are

with which to

fight the develop¬
vicious deflation.
the
Administration
ready to fight deflation

ment of any
In
sum,
must

just

fiercely

sion. They are

it fights depres¬
and the same

one

thing.
the

prices of spot

has been causing considerable un¬
because

easiness

indication

the economy,

could

weakness

basic

out that most

it should be pointed
of these have lately

shown

steadiness

some

suggesting

ness,

month of

February is frequently a
seasonably
low
point.
Besides,
of

some

now

the

commodities

these
or

below

whole,

support

confident

view

price

prospects

over

6%.

new

all-time

down.

100

the

broad

emergency
the

Korean

gram

Our new manager of the com¬
modity department in New York,
Victor Lea, made a talk before

Society of Security

years

which

He has

period
shows

over

there

Administration's

margin requirements,

covering

chart

the

The

early in 1952, nearly two
after commodities turned

farm

Money Rates

down about

Analysts last Monday.

that

several months is fully warranted.

prices,

the New York

are

levels.

seems

Board's

years

off.

it should be noted in the
of agricultural items that the

Reserve

firm¬

leveling

decontrol

reached

com¬

modities, whose downward trend

commod¬

Meanwhile, what have common
Well, industrials as
group moved up during this pe¬
and

seen.

(that is, the value
of
money), it must be borne in mind
that the new managers at Wash¬
ington have a number of tool3

stocks done?

high

Most important of
all, however,
the
Republican Administration
cannot afford a depression. A
sub¬

has

raw

25% from their post-Korea top.

riod

cient plants.

com¬

declining for

two

peak.

and

market

stress the trend of commod¬

now

ity prices

now

would

for

can

to the future of commodity

prices

case

outlook

far ahead

Also,

Commodity Prices
The

ture
As

For the early

would

much net profit
reduced to 85%

through using only the most effi¬

COARAWTEEP RAILROAD STOCKS-BONDS

began,

hearts

modities have been

large net savings from the elim¬
Tampa ination
of
overtime

With McGhee & Co.

tended to swing in

just as serious as
the other.
So I pledge you this.
If
the
finest brains,
the finest

these

pay

Street.

25 Broad Street

defeat

plant picture and that is that
competi¬

capital in¬

ability of materials and perhaps
lower prices. (Keep in mind the

TAMPA, Fla.—John W. Bryan full

ness

spending;

arguments,* several important
points can be made. There is a
huge backlog of state and munic¬
ipal projects awaiting the avail¬

con¬

ducted his
own

would mobil¬

resources

certainly in¬
vestment will decline;
(4) That crease. However, competition in
the net result will be a decrease
the life-blood of enterprise. "Free
in employment, lower consumer
enterprise is always on trial in
incomes and the
touching off of the court of public opinion."
an
old-fashioned depression.

associated
with

mo¬

defeat

One is

invasion?

future.

expenditure and

most of the time since World War

ary was 236% of the prewar level accumulating burdensome inven¬
tories. During the fourth quarter
—a
new
peacetime high record.
of 1952, business inventories rose
February
production
probably

deficit

an¬

that

nounce

production con¬
tinuing at such a high level, it
is only natural that some concern

out in June, 1954 and the new
Administration will not resort to

Midwest

our

refuse to

ours

resources

With industrial

Stock

its

this

expenditures and payrolls which
— Gottron,
it causes, have been the basis of
Co., Union Commerce
our
high economic activity; (2)
Building,
That defense spending will top
members of

and

Securities

reduced

such
u

can

CLEVELAND, Ohio

Russell

Association, serving

Specialists in

taxes

year.

Common

year

all

depression

annual

As to any real bearishness on
stocks, based on lower commod¬
private industry,
ity prices, speed is the key.
II;
of municipal government, of state,
ings in expenditures,
Congress
commodity prices sag only slowly,
governments, of the Federal Gov¬
will probably come to the rescue.
as
I believe they: will, at worst,
ernment, will be mobilized to see
Again, if the Democrats continue
the decline should prove to be
that that does not happen. I can¬
to pin a Truman label on the new
beneficial rather than otherwise.
not pledge you more than that."
Administration, opposition to tax
Bull markets in stocks are not
reduction from Republican leaders
Incidentally, the number of peo¬ b a s e d on rising commodities,
ple employed in non-farm work Steady or slightly sagging com¬
will disappear.
I understand
Eisenhower still in February was reported by the modities are the best for corporate!
believes that taxes can be cut Department of Commerce to be enterprise and for the stock mar¬
about
10,000,000 higher than at ket as well as for the workers
slightly at this session of Con¬
the peak of World War II.
This and the
gress. His personal attitude is re¬
public. The biggest mar¬

top of this share
earnings increased
$0.50
■enviable record, there have also for the
single month, amount¬
Y»een some important changes for ing to $2.54.
The traffic out¬
common

They want to see
When then would a

country.

our

(on

fairly short swings of two to four,

"Never

has failed point to the likelihood of another
earnings after pro- excellent year in 1953. January
vealed by the position of his chief is
priding in full for its fixed charges gross was 4.3% higher than in the
advisor,
Senator
-eind for contingent interest on the opening month of 1952 and the Congressional
Carlson of Kansas.
Carlson says
Adjustment 4s. Also, there have transportation ratio was cut from
to show

himself, speaking in New
during the campaign last

putting the Repub¬ The Soviet Communism is look¬
licans in a bad light. Democrats ing for one great victory.
That
are
confident
that
President victory is the economic collapse

ture,
earning power has been Truman could to bring peace in
equivalent of less than $10
a significantly bolstered by the im¬
Korea, to balance the budget and
tihare. The old stock, before the proved operating efficiency stem¬ to reduce taxes. This Democratic
two-for-one split, sold below 20 ming from property improvements
strategy is already having the re¬
when British holdings were being and diesel operations.
sult of inducing bolder action in
The
liquidated around the beginning
company
last year had Korea, and it may force more
of World War II. It is similarly somewhat higher gross revenues
Governmental economy and tax

clays the pre-split stock

hower

market

It has been my observation that

the pattern for

-oould have been purchased at the

dhfficult

Prospects

In the words of General Eisen¬

tax

largely
a tion next year.
road. Miscellaneous man¬
The Democrats have established

"tiie fact that within the memory

practically
and virtually

the

promised

just can't afford to run the risk York
of losing the Congressional elec¬ fall:

Atchison, Topeka & Santa Fe
It

have

stock

basis).

to'

moves

the

reduction

well

are

part of

program

devises

set

scrapping
up since

When

this pro¬

war.

is completed, the restraints

inflation will rest where

they

belong—that is upon money man¬
agement and fiscal policies. These
include

balancing

the

budget

through cutting expenditures and

eliminating waste, and keeping
close

curb

supply

credit

through the

and

money

reserve

dis*

Jfolume 177

Number 5204... The Commercial and Financial Chronicle

(1237)
count

rate

and

market op¬

open

erations. The increase in the
count

rate from

dis¬

1%% to 2% last

Looking further ahead, I

see the
substantially higher stock
prices in the improved psychology

basis of

has

already

this

regard. Even

credit

shown
a

the

scanned and

thing

received

dividends

way

tax free

noticed, otherwise filed

January was long over-due.
It
merely made official recognition

of investors under the Republican

would be

regime.

tinue to grow as fayfBvjs. restored
in the system of private enter¬

tion. It would raise hopes of fur¬
ther relief
of
the
stockholders'

important

burden

studied

factual

situation.

the authorities
this

rate

Obviously,

ready to adjust

are

that

again

general

becomes

rates

Interest

been

Deal

require

era.

does

not

analysis

expert

any

con¬

stocks

worth

are

sizable

have percentage more under Republican

artificially low during most
New

should

It is demonstrably true that

common

necessary.

of the

prise.

Confidence

politics

than

under

Democratic.

Beyond this general and continu¬

ing

influence, however, I would

conclude that the trend of interest

emphasize

rates is

events, each of which will add to

upward. However, to

now

this

that

assume

the

fact

stocks

fallacious.

feature

outlook is bearish

interest

that

the

seems

Witness

rates

saw

1946

about

then

Taxes
taxes

worth

both

incomes

corporate

The

has

October

1st

will

tainly not hurt the stock market.

EPT

Interest

see

ending of

income taxes.

Good

rates

quality

3.1%

high

yield

grade

low.

very

stocks now
almost double

common

yield 5% to 6%
the

still

are

carried

now

Russia

situation in Russia. Most

of two

one

One

Stalin's

death

chances

"Their

opposite extremes.

convinced

group

third

that

increased

has

theory

personal

1954,

Congres¬

sional election year.

market

of the comments I have heard fall

into

from tax cuts in

important

the

so-called

the

World

War.

the

new

that

development

there

real

very

for

to look forward to.

derstand

but

tax

will

gradually improve

and
to

position

their

foreign ventures.

That

maneuver

the least of which is the return of

buying

ohances of

decreases

the

third World War. The

reasoning
there
seems
equally
logical. It is that the new leaders
will

have

difficulty in assuming
and therefore will be too

power

busy to engage in any new ven¬
tures

the

outside

About all that

iron
be said

can

grounds

ate

may

that

afford

cannot

our

that

would

sues

thin.

Dividends,

would

stage,

London

stock

generations
tended

action

the

market

that

curate

the

increased

the

has

moved

The

facts

you

clients.

less

the

keystone

this—least

No one expects

all

good

Selling securities does

becoming

not

your

client

for

the

facts,

Groups

check-up for him. If the inquiry
routine, or from a new account,

new

prospect, or client, that you
know your business. The greater

Conditioning

the

inquiries

^Insurance

panies

will

rates

*Soft Drinks

will

^Utilities

care

with

;

become

state

Air Lines

which

larger

out

proportion

the
a

with

steps

1952

taxation"

Francisco

was

the

formerly

Lost

Mr..
man¬

departments

trading

for Davies & Co. and
was

and

Exchanges.

Stock

prior thereto

partner in Raggio, Reed &s

Co.

With Stewart, Eubanfes
(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Dam

prospect.

B. Williams has become connected

right out with it and

with Stewart, Eubanks, Meyerscm

that your

your

firm

never

gives & York, 216 Montgomery Street*

checks members of the San Francisco and

but

available fact before infor¬ Los Angeles Stock Exchanges. He

customer, the

was

formerly with Kaiser & Ca~
u

Railroads (Selected

issues)

Trade

Rubber
Steel

the "double

dividends.

ager

San

Paper

slightly

earnings to

ease

Angeles

Natural Gas

be taken in the

may

Montgomery Street, members#
the

various

off-the-cuff opinions,

Parts

Retail

of time to

FRANCISCO, Calif.—Rus*-

sociated with Hill Richards & Co.*,

Foods

shareholders.
Some

SAN

sell G. Mahlmann has become as¬

handle

you

pertaining

If you come

Aircrafts

earnings

continue

paying

With Hill Richards

stocks and bonds the stronger you

many com¬

proper

(Special to The Financial Chronicib)

Mahlmann

mation is given to a

the

needs

Russell G. Mahlmann i

owns, the cost price and all rela¬
tive data, then go out and make

Electronics & TV

Even

involve

every

somewhat,

unproductive office*
lawyer doesn't

good

reference.

walking encyclopedia

of information

Banks

indications.

The

when

look

client.

*Electrical Equipment

idess^.

they have to be memorize his law books but he?
thousands of stocks. knows on what
page he should

mistake.

*Cement

going to hold up
1953, according to present

should dip

time

work.

following
stock
among the most promis¬

the

*Air

remember.

mind that is not-

figpres. This will help*
to make more sales and spend,

has

Department

Most Promising

will have tcr»

you

and
a

and

155

Research

groups as

almost

Groups of Stocks

selected

try

cluttered up with too many

fol¬

mistake

mind

files, wbem

to render am

that
in

Auto

Canada

•

the_PR55§

♦The first six

off

the best.

are

Securities Salesman's Corner

1953 EDITION OF

By JOHN DTJTTON

"SECl'RITT DEALERS OF NORTH AMERICA"

Know Enough But Not Too

stocks

following the

news

Also there

interest

was

bonds

Just

for

the

record,

should

also be observed that excited sell¬

ing in the New York stock
was

confined to

and average

than

they

news

prices

were

came

mar¬

brief period,

higher

are now

MUCH!
New

ac¬

■"iron curtain" countries.

when the Stalin

out.

the

for

much

difficult

balance

between

come

concise

out with

conclusion

the

market

cast

issues,

will

the market in the second quarter

pointed
are

out

that

usually tested

day

reports, news items,
statistical
releases,

new

too much

keep abreast of
information, even if you

advantage

and

that the

slight
seasonal
a

dcline in the second-quarter from

Spring rally top

may

than normal in 1953.

be less

But

you

are

selling

general

securities

market

and developing
ordinary investors,
special
situation
speculators,
buyers, municipal bond investors;
and if you cultivated the widows,
the lawyers, the doctors, the pro¬

clientele

long experienced in the busi¬ fessional
The

best

plan

making

seems

to be

decision to
what is important, and then
upon

place where it

can

be readily ac¬

cessible if needed.

Find Out What Your Firm Is

stock
speculators, the
buyers, and the people who
have up until now put it all into
the savings bank and savings and
loan associations, you have quite
a
different problem.
If you are
running a grocery store you have
to know your vegetables and the
canned goods too.

fund

Essential

firm

you

then

should

with

are

natural

specialize in

interest

municipal

that

rates, the government

bond

market, the latest informa¬

tion

regarding

Reserve

and

Treasury policies, and certain
outstanding issues in which you

will specialize.

corporate

news

would take only a

small

amount of your study and
reading time each day. In other
words, you would put first things

first and simplify your fact

Doing

Reading

find¬

If You Are

General Investment

you

knowledge

Federal

A 1,328 page book containing 8,000 listings covering all United
States and Canadian cities.
Listings are arranged geographi¬

cally and alphabetically, and
Firm

Name

under

which

are

comprehensively detailed:

business

conducted

and

Street Addresses,

including Post Office District Numbers

General Character

of Business & Class of Securities Handled

Names

of Partners

Slock

Exchange

and

Officers. Names of Department Heads
Association

Memberships

(including

N.A.S.D.)

which

"Wall

Street

Journal

you up to

paper a

Journal"

day—the
or

nancial

the "Commercial and Fi¬

Chronicle," will give

suggestions,
situations,
background for your sales presen¬
men

and

the ideas of leading

in the financial and business

Bound in durable

limp fabrikoid

—^12'^

ENTER YOUR ORDER TODAY

HERBERT D. SEIBERT &

C0.y INC.

New York 7, N. Y.

25 Park Place
REctor 2-9570

world.

dealer literature sent
out by wholesale houses should be
(3)

of all firms showing city in
located is another valuable feature.

you

helpful

tations,

are

on news.

One good financial weekly

(2)
such

they

"The

Commerce," will keep

date

Systems

Teletype Numbers—Correspondents—Clearance Arrangements
An ALPHABETICAL ROSTER

Business

(1) One good

date

established

Phone Numbers—Private Phone Connections—Wire

Selling and Learn About It
If

The other reading
or
broken in the second quarter.
and
study that you might do
I would not overlook this possi¬ would be
only used as background
bility now. However, it seems to material. The stock market and
that the bulls do have

specialized in any
types of securities such as

are

mistake to try and

stocks

pendulum

If your firm

other

passing

from

they

etc.,
that they rightfully believe they
can never keep
up with, let alone
digest. I personally think it is a

which

ing and reading material.

clear and

beginning of this talk I

year.

sion

unfavorable

stressed the seasonal movement of

the

back

information

over
rails, public utilities, or special
to
day. situations traded over-the-coun¬
overwhelmed ter, your reading program would
by the seemingly endless proces¬ naturally work out the same way.

desks

Sometimes

February lows

swing.
At the

taken

constantly

their

read

sketch

and favorable influences
and to

that

investment

put the rest of the material in

brief

the stock market's background. As
usual

often

are

amount

based

Psychology
So

the

vast

ness.

Coming Events to Bolster

men

business

are

the

offer

can

regular

well in

has

most

London

score,

Stalin's death.

and

stock values, are

usually of¬

appraisal of events abroad.

turned firmer

thinking
experts
This is

which

make

men

interesting

and

clear

yom

servidPr

the

market

supply

this

way

which

new

Some

ten

situations

and

Ask

then

fers the best guidance. For many

net

read

better

critical

ket

special

five

upon

opinion, the less

use.

(4) Every salesman should have
least

called

you are

ask his purpose
of investment,
find out about his
holdings, obtain
the amount of shares or bonds he

Best

definitely

practical matter whenever
foreign
developments
reach
a

well

and other data in your

morning

the

The

of the statistical

use

things;

to make salens

be.

will

ac¬

de¬

longer alive.

the

handled, viz:

fense program just because Stalin

study

use

business

develop
you

make

desk

good

permit

substantial letdown in

any

over

every stock or
bond that is available in the mar¬
ket. The only
proper way to han¬
this year despite near-stagnation
dle inquiries
regarding unfamiliar
elsewhere.
A further
lift there
holdings is the way that all in¬
would add to confidence in an ex¬
quiries from
clients
should
be
tension of the general rise.

stocks

however, and that is

sure,

thing

long-

material
cannot

and

off

found

steadily upward week after week

broader market in many is¬
where the market is now

course

ter of guesswork. Of one

were

investors sought out

look

anything

have

the door is wide
open to show this

the

this

mat¬

speculative

the better grades of income-pro¬
ducing issues. The index of low-

curtain.

subject is that it is merely

grades of stocks. These

neglected

expand total volume of activity.

death

interest

period and reduce the tax rate

Stalin's

side, there are
encouraging features, not

that you can't

it should be

when I sort out ideas for later

both

On the technical

day.

leisure.

will be to

The less you read about

over

of the

leadership and provide

dis¬

capital, and as such is vicious. In ing for capital gains on the next
fact, Congress may cut the holding upswing in the market:

rather

new

that

lows

many

closer you
count.

any¬

shouldn't take
a

comes

when

full

develops favorably.

organ¬

-would tend to prove the strength

rallying point for the people at
thome. The other group insists that

that

and

that

power

strengthen

stockholders

This

minutes

ably higher, especially after mid¬
year, or sooner if the tax situation

difficulty pick¬ be a sizable producer of revenue.
left by Stalin Such a development would add to
that they will therefore try the value of stocks as well as cre¬
the

ten

the bull market will go consider¬

leaders will have

ing

ahead, I believe that

confidence

un¬

the transfer of

these

carded.

the

ized opposition to alleviating this
tax. It is truly not a tax on in¬
come

velopments
the

priced

Modification

Nobody knows how to interpret
new

cut in

capital gains tax is another

VIII

the

Investors will benefit still

bonds.

corporate

well

With

score.

other favorable potential de¬

and

common

and

this

on.

going to be reduced—

are

time goes

coming

cer¬

ago.

years

since

rates

market

equities

individual incomes. The only
question is When? My guess is

their all-time low in the spring of
rise

the

series

step in the right direc¬

briefly read. If

appears of interest it should

All

assgggssaEgat

(1233)

Joins
(Special

LOS

Hart

The Commercial and
Financial Chronicle

Crowell, Weedon
to

The

Financial

Thursday, March 19, 1953

...

Bache Holds Brokerage Office Show
o

Chronicle)

ANGELES, Calif.—Bill C.

has

Crowell,

become

connected

Weedon

Co.,

650

Mutual Funds

with

South

Spring Street, members of
'tJios Angeles Stock Exchange.

size

SERIES

have

liquidated

cent years.

'ijjWTOAIi INVESTMENT fpIF

growth

now

from

NATIONAL SECURITIES &
RESEARCH CORPORATION

re-

Among those in which

high

Stock

balance in

has occurred

pany's

Fund

the

quality
which

increased

5? y0,3!755'

profit-taking in several of
the cyclical
groups,'' Distributors
Group states,
fulfills the purpose

Now York 5, N. Y.

for

which

the

orig-

were

inally sold and figures

given
in support of this
statement.
"For

end,

are

example, to the 1952

the

company's

had received

Steel

year-

total of about

$58,-

Company's
Receipts

ABOVE:

Bache

audience

eager

Company's

200

New

York

scrutinize

women

uptown

the

latest

office

fashions

Automobile

the first of three evening
audiences, which braved wind and rain
last

Thursday, March 12, to

see

the first fashion

show

Railroad

(1.

r.),

Mrs.

Leila Hyer, look

Lee

Cody, and

Misses

Janice

Miller

TERMING
ada

and

21,358

THE

view

that

its

certain

Group

letter

these

jn the past
tion and

investment

the

three

1949-51

years

provided

abo^t

Cana¬

$85

out

its

audit

annual

of
ex¬

primarily for apprecia-

...

achievement

that

which they sPeak of
Capital

12-31-52 '

Paid Back

the

Ca¬

Balance

$1,163

3,473
.1,861

1,317
732

3,733

3,^46

85J

—

Canada's

relatively

Recalling

that

was

At roughly $23

from

1951

almost

This is the best concrete sta¬

double^ the

evidence

cadmium;
fourth
the

third

in copper,

Canada

totaled

1952

fig¬

that Canada

from

the

fiscal

en¬

stand¬

first

favorable

fiscal

which

carrying

issue

lead

This

policy is despite

production

million,

2.6%

1952

year.

daily oil output averaged
is expected to

reach 300,000 this year. "Despite its
constantly expanding oil demand,"
the publication states, "Canada
bjj:

1956

should

have

oil

Lie

producy.

tion, " transport

means

kets to make it

self-sufficient, oil

and

mat*

balance, for the first time.

output

problem.
of

Canada

amined,

barrels

there is

reserves,

Although less than
petroleum area of

the

Western

500,000

over

As for oil

has

reserves

been

ex¬

already

are

es-

Bache & Co.'s

"Big Change"
Change Investing,
The 'Change

BOND, PREFERRED AND

Is Off

COMMON STOCK FUNDS

having thousands

girl

can

shop

set

Saks

Fifth

Avenue, the local "carriage trade"
emporium,
and
still
keep
her
principal intact if she learns first
that, "Dividends are a girl's best
friend."

Heading

Name

last

syndicate

three

Thursday, Bache & Company
an
offering in three even¬

Address

made

City

ing

shows

of
the lastest
fashions from "Saks Fifth"
to over
500
women, who had answered

invitations
papers

and

the radio, in

from

news¬

"Mademoiselle"

magazine.
On

the

women

have

securities

ness

(that's

out

felt
was

right,

that

that
a

it was),

busi¬
or

show

that

women

in¬

too.

ness,

Harold

pointed
lot

Bache,
out,

senior

"It

money

partner,

doesn't

take

invest in securi¬

ties.

Many women in middleincome brackets set aside
some of
their incomes for
just this pur¬
pose.
I
understand
you
ladies
plan

your wardrobes

with

eye

tomorrow, so why not start
planning your financial future,
too

and

approach the

financial

your

Besides

offering,

planning of

future

seriousness

same

most' robe?"

investing

man's

vesting, like fashion, is their busi¬

choose

theory

that required

of dollars in the

mattress, Bache and Company has

In Mutual Funds

—

rate something

any

On Small

with
when

new

Spring

the

there

Avenue,

were

and

Saks

Fifth

rov¬

ing columnist for "The Commer¬
cial

Financial

Chronicle."

days

had

savings

and

could

you

the

know

the

value

those

for

get

blame

tunes

for

and

learn

investment

asked

much

misfor¬

audience

more.

The braintrust behind the fash¬
ion

show

isl'Sam

idea

Chernow,

Advertising Company.

Mr.'-Chernow, a+ relative new¬
comer
to
specialized securities
field

advertising,^organized

"Mademoiselle" Albert

right

of the best

touch."
a

designers

Chernow

Mr.

developed

campaign with

advertising

fashion slant for

Vitamin Corporation of America's

"Rybutol" vitamin

pills.

During Bache's Fashion Show-^
age

as: their husbands

perhaps

the

about the manage¬

ment of money

know—and

the

fashions, "the light touch

with

what

most often

were

some

claim that with liquor,

savings.

Ira U. Cobleigh said that cupid¬

ity and stupidity

forts of
for the

also

Introduced by Mr. Bache, Betsy
Talbot Blackwell, editor of "Ma¬
demoiselle," said a women nowa¬

Chernow

Bache, in the negotiated

March

its

article, "Our Mutual

Friends," by Ira U. Cobleigh,

you

ward¬

first to be given in

office,

broker¬

models

eight

showed

32 dresses in each of three

which, according to

department,
each,
the

the

Change

shows,

statistical

means

making
Big

our

changes

Fashion

Show

dramatizO

Small

Change Investing off the
'Change in mutual fund shares.
Bache

show

will

hold

Washington, D.

plans to give

one

principal cities

fashion

C.,

and

in each of

across

the

the country^

with

Frank-Guahther Law the

advertising campaign
Lynch/ Pierce, Fenner

l'ashion-type
of

Affiliated
A Mutual

from

The
200

may

be obtained

Beane.

know

Investment

wants

It takes

Parker

Corporation

1925

for

women,

forts

Lord, Abbett & Co.
New York

—

Chicago

—

At lanta

—

be/told
.

/in

Los Angeles

woman's

been

Mr.

talk!

dealing

makes them

with

tick."

Chernow's first ef¬

seeking
mind

Schenley's
the

warm,

long; time. We know

what

woman

certain know-how to do

We've

One

Berkeley St., Boston, Mass.

U •FOUNDED

Fund

upon request

Hi?

better

life," Mr. Chernow said, "and

Prospectus

wants

will

her

women

investment dealers

woman

product

she

that.

Diversified

how

glowing terms

Fund

Investment Fund

Merrill

Prospectus

estimated that this would require

10%

a sur¬

and

that

reports

preceding

Canada's

daily.

plus and reduced its debt.

State

;
.

defense

silver

mineral

$1,278

the

riod that each year has had

U-tii

lead and cobalt,

publication

point is termed unique, the only
major country in the postwar pe¬

K, :ystone

Funds.

1945

joyed a peak production .year in
1952, the publication states.

ten

high

Canada

peak in 1952.

tistical

me
prospectuses describing
Organization and the shares of your

burden.

170.000 barrels and

billion, it

Please send

Dividends-

$1,236

ure.*,

your

Income

A..set Va.ue

over

and

C*T

Congress Street, Boston 9, Mass.

"tar"

+ $157

economy, the publication
finds that overall economic activ¬

Address.

purpose,
the

get" of every investment.

new

sold

were

that the

Canada's

represented by Canada's
Gross National Product reached a

Keystone Company

the

funds

ity,

The

makes

that

profit-taking by
investors, revealed by these
figures,
simply
reflects
the

"general

nadian

Fund,

Custodian Fund;

are

obligation please send

prospectus on Canadian

funds

(000 omitted),

Distributors

point

22,208

Can¬

every
$100 of new capital
penditures in their country.

■m a

several

Group Securities

in table

have

misconception," the current issue in the Free Worlds output of as+
"Perspective," Calvin Bullock's bestos, nickel and platinum; sec4
economic publication, states that ond in
aluminum, gold, zinc and

understandingly.

dians

other

investment income

+1,225
5,708'.—
66

5,641

_________

about

was

$11,650,000."
figures given

13,755

its postwar expansion to

owes

foreign

ffNTLEMEN: At

end

year

held

ever

brokerage office.
BELOW: Harold Bache, senior partner of
Bache & Company, struggles with ticker
tape, while three young
guests

The

14,980

Bond

net

totalled

$6,447

Low-PricedPetroleum

the

$14,000,000. In addition, dividends
from

$6,605

000,000, yet the asset value of this
class

com-

Common

has

000,000. Capital items paid back
by the company—in the form of
redemptions and capital gains dis-f
tributions—have exceeded $55,-»

$405,226 to $5,023,«30 during

The

Established 1930
•

ones

Distributors

SPECULATIVE

120 Broadway

the

are

being emphasized by management,
Group,
Inc.,
gives
some
interesting figures on the
Group Securities' classes which

NATIONAL

dealer

By ROBERT R. RICH

gained

your

the

POINTING OUT that those
Group
Securities'
funds
which
have

Prospectus from

was

attract
ort

the

behalf

Three C Feathers.

Prospectus describing the Com¬

pany

the

ing,

and

its

price and
is

shares,

including

terms of offer¬

available

upon

request.

For

distiller, he engaged the ef¬

EBERSTADT & CO. INC.
39

Broadway

New York City

Volume 177

Number 5204

The Commercial and Financial Chronicle

...

(1239)
tablished at close to 2 billion bar¬

SINCE

rels.

Wellington Fiqid has slightly

"As

•in

duced

always does, the surge
primary segments of Can¬

the

ada's

stimulated

economy

and

ity in its secondary fields. Aided
by an elimination of credit re¬

panies enjoyed
1952.

For

record

example,

1951
*

with

the

only

pointing in
stock

major respect

one

scene

found

net

and

ernments

the

10.36%

and

last,

8.32%

advanced

sharply

the

net

assets

beginning of the
The

shift

activity

sidered

1946-51

period and in 1952 went through

digestive period, awaiting its
as

the

recent

future.

mate

Product

1953

$24

The

conditions

individual

peak, "Perspective" finds

National
a

new

un¬

derlining thesis that Canada

witness,

will

expanding economy.

average,
i

Cohu Exhibits

Under

the

proposed

plan

H
Milan D.

Popovic

greater

Ripley
i 11

April 15, 1953.

national distributor

and

m a n

&
b

Co.
t h

rectors

se¬

and

di¬

include

Co.

Harding

Director
of

and

Harriman

New

York,

and

Vice-

Ripley &
John P.

Chase of Boston.
In

making

announcement

rangements

proval

which,

with

the

ap¬

our

stockholders, will
bring to Blue Ridge the services
of two experienced and successful
firms in the open-end investment
trust field."
The
Mr.

three present officers,
i.e.,
Sloan, Milan D. Popovic and

competi¬

the

important

Our

Corporation,
of

group

tual

sponsors

and

man-

mu¬

invest¬

ment

funds,
according
to
an

announce¬

ment

made

today

Henry
J.
Simonson, Jr.,
President. Mr.
Gilbert will

Public

Reporter

Division.

Governments

For the

past

KoDeri

A. Gilbert

five years, Mr.

By JOHN X. CHIPPENDALE, JR.
-The government

affair and there

market

are

Gilbert has been

continues to be mainly

short-term

signs evident yet that this condition will
Uncertainty is still shrouding the money
markets, because the most important topic of conversation at this
time is when or how soon will the
long-term Treasury issue come
along with the 3J/4% coupon. Because there has been
built-up in
the money markets the belief that
long-term higher coupon rate
financing. will be done by the Treasury in the near future, prob¬
ably to meet maturities of the F and G savings bonds and the mar¬

change

progresses."

year

investment management staff
National Securities & Research

the

investments

joined"*

the

Utility

erations of each company will be¬

increasingly

ROBERT A. GILBERT has

be manager of

stated, "that a comparative
appraisal of management and op¬

selection

respec¬

tively. Mr. Popovic will also be¬
come a
Vice-President of John P.
Chase, Inc.

agers

the

Mr. Sloan said, "We are
highly
pleased., with these proposed ar¬

will fur-

Secretary-Treasurer,

portfolio

normal

and more emphasis on the
importance of managerial ability
and operating
efficiency. "We be¬
lieve," the Wellington manage¬

the

;

the Annual

con¬

the

rectors. Stockholders will be asked
to
increase
the
Board
of
Di¬

stockholders

some

gen¬

officers

President

ad¬

Meeting

business

Woodall,

approval

largely

issues

advice

curities

tion

come

continue

its

visory service
subject to

ment

the Ca¬

nadian future in line with its

with

provide

vestment

qualities.
saw

distribu-

nish certain
operating facilities. Raymond W.
Hofmann, will con¬
Similarly John P. Chase, Inc., in¬ tinue as
President, Vice-President
vestment counsel of
and
Boston, will

shares and in¬

year.

and

Gross

t i

amply priced with others
favorable outlook or bet¬

report

new

arrangements

and

company

for

erally returning to

billion,

the

has made

Gov¬

March

commons

stocks

ter defensive

cue

•income tax reductions and the Ca¬
nadian Governments' official esti¬

that

had

$254,024,910

Pointing to the

corporate

week-end

respec¬

cyclical

industrial

the

January 1, last.

involved the replacement of

expanding

Ridge Mutual Fund, Inc.,
York, N. Y:, announced over

compared

Canadian
'its

Blue

New

common

averages, which on
balance declined moderately. The
response

ac¬

compared with $246,183,017 at the

1952, the trend of its

re¬

holdings

in U.

cash

last, amounted to

was

disap¬

market

GEORGE A. SLOAN, President

year,

reserves,

assets

and

64.41%

tively

Total

Canadian

cash

March

stocks

peak."

the

food

over

Fund

63.07%

department

store sales increased 8%

stock

common

added

the

com¬

volume

its

FIRST

cording to its interim report on
investments.
After
these
shifts,

activ¬

strictions, retail trade, the
industry and the finance

THE

Antiques Show

ketable issues that

wmm,

immediately.

come

due soon, demand for government

secu¬

fund executive

of the Investors

Management Co.,

Inc., manager of

a mutual invest¬
Following 14 years

fund.-

ment

with

Stock Exchange firm as a

security analyst, he spent 3 years
in
investment
research - witht
Manufacturers

Co.

Trust

thei next three

years

and

for

the

was

investment research staff of Good-

body & Company.

rities is confined
principally to near-term obligations.

"Jvr The short-term

buyers of government issues have been sup¬
plemented each day, because of the uncertainty over higher inter¬

NATURAL RESOURCES

est rates which

are

for sale in

been, however,

some very

expected in the not distant future.

There has

minor buying of the intermediate term
obligations and the long-term issues for maturity purposes and by
State funds.

the

liquid

issues.

Demand

for

the

$100 in

income

markets in the not distant future.

money

sure,

living.

Mutual Fund Men Meet

one

going to do

By Cohen, Simonson Co.

latest

testimonial

dered

March

dinner

ten¬

was

John

Frost by the

employees and part¬
of Cohen, Simonson & Co.,

ners

members

change,

the

New

the

firm

the combination

clerk

York

years

audit

Stock

occasion

Ex¬
com¬

of service

and

three-way

idea

figures in the Treasury bulletin shows that
outstanding are held by the com¬
mercial banks, with the balance owned mainly
by fire and cas¬

the New York Stock Ex¬

Simultaneously with this testi¬
monial, Abraham Simonson,
ior

partner,

Frost
eral
was

has

announced

been

sen-,

that

admitted

Mr.
gen¬

partnership in the firm and

available

about 93% of the total amount

elected

York

member of the New

Stock

Exchange.

ualty

companies.
The June 1 maturity of l7/s% certificates,
according to the latest available data, appear to be held mainly
by . other investors, commercial banks and the Federal Reserve
Banks.

This is a rather sizable issue and one in which,
according
reports, the Treasury hopes to be able to bring about an ex¬

tension

of maturities.

As to the Savings Bonds, especially the F and G obligations
which start to come due on May
1, it seems as though the method
for taking care of these maturities has been
pretty well set, ac¬

cording

the

better

that

STATE
and

marketable

Long Marketable 3V4S Forecast
With

U. S. TREASURY

informed

"open mouth operators."
It is
obligation will be a very important
part of the refunding offer that will be made to holders of the
maturing F and G obligations.

indicated

marketable issue

evidently in the making

MUNICIPAL
SECURITIES

far

the

of the F and G Savings Bonds are concerned, the specula¬
now
is what the maturity of the marketable issue will be.

owners

tion

Although
years,

talked

hears

one

seems

about

most

posed to be in
ury

meet

Bonds, the

the

about

maturities

running out as far as 50
30- or 32-year issue is what is being
frequently. According to those that are sup¬

though

the know

to what will be done by

impending maturity

coupon rate

the

and

the Treas¬
G

Savings

will be 3J/4%.

Corporate Bonds Seen Affected
If the stories that

are making the rounds about the
refunding
Savings Bonds turn out to be the real McCoy, then
some of the yields of
Treasury obligations still have further ad¬
justments to make although, in many cases, this has been pretty
well taken care of already.
However, there are other segments

of the F and G

LOS
fund

ANGELES, CALIF.
executives

Second

Among

Pacific

those

Executive
panies.
Howard

Co., Los

met

Coast

—

from

Over

500

March

Mutual

attending

Fund

were,

Secretary, National

New

York;

Charles

left

mutual

through

fund

Match

Conference at
to

right,

Association

Eaton,

retailers and
11

the

for

the

Biltmore.

John

M. Sheffey,
Investment Com¬

Jr.,

President, Eaton &
Corp., Boston; John D. Boggs,
Manager^ J. A. Hogle &
Angeles; Ray Moulden, Secretary, Investment
Compa¬

nies Committee of the National
Association of Securities Dealers,
Washington, D. C.

the

bond

market

that have not yet fully anticipated such a
long-term 3V4% Treasury obligation, and these
securities will have to go through a rather sizable adjustment
before they would be in line with a higher coupon long-term
government issue. Corporate bond yields would be among those

development

that would have to make adjustments in order to be in line with

30-year, 3^4% Treasury obligation.

telephone

change.

that, by the use
multiple choice system, the Treasury will be better able to
meet the
requirements of owners of the maturing obligations.
Looking at the partially exempt 2s which have been called for
payment on June 15, and which is a comparatively small issue,
the

been

John F. X. Frost Honored

to be used again

of the

Conference

Fund, Inc. has
for sale to 20.

pletion of 24

hears about what the Treasury is

to meet impending maturities, it seems as
though
system, employed in the initial operation, is going
by the monetary authorities. The two-way or
seemingly will be in vogue because it is reported

Canada

there

Combination Offer Seen Probable

shares, the display;pointed out how
investments contributes to easier and better

seem

From what

mutual fund

from

number

short-term

to be plenty of talk and rumors about what is going to be
done, which indicates that "open mouth" operations are being
given a very thorough workout again.

win

the

pears

increases

to be any really authentic advance
"dope" yet as
Treasury will do to take care of the maturing Series
F and G obligations as well as the June l%s and
2s, the latter
having beep called for payment^prj June; 15. . However, there ap¬

ex'ra

e n

qualified

to rule the market for
government secu¬
that the only real interest in these obligations

to what the

SEEING ANOTHER opportunity to
bring hotiie to an everwidening audience the advantages of investing In mutual
funds,
Cohu & Co., One Wall
Street, New York, installed a convincing
display at the National Antiques Show in Madison
Square Gar¬
den, held from March 9 through March 15.
Featuring a chance

means

near-term

does not

Florida by the Florida

Commission, Frank L.
a, President, announced.

states in which Natural Resources

expanding, with more institutions going into these
securities each day as a hedge against what is
likely to happen in
the

Securities

continues

Caution

rities, which
is

Fund, Inc. has been qualified

This

Refunding Plans Principal Topic

Treasuries

ada

of Can¬

Aubrey G. Lanston
8t Co.
INCORPORATED

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk Sl

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-646S

The Commercial and Financial Chronicle... Thursday, March
19, 19531

(1240)

Continued *
from *
first

postponed unless expenditures

vaoe
" "

cut
A

?*FltA

fAt

11X6 DUSlneSS UUIIUUK IUa
I,

Tit a

Nay!

lllv

must not

NAVAfAl

llvAl

no doubt
ences,
such
as
contractions
in
that within the next several years other parts of the
economy
or
we shall publish an annual oal- credit difficulties.
ance sheet of the United States.
Any drop in the rate of investIn the meantime, we have to be ment will be limited to a consid-

YM(S
AVUAif

MWIViWl

use

part of one of its

most imP°rtant defenses against content with the figures
recession, namely, tax cuts, in a available. These figures,

■

for the country. I have

are

drastically that the termi-

nations do not produce a deficit
in the cash budget. The country

flllilAAlf

KHMHACC

peak spending.

year of

Although

factory though they

that

are

warrant

are,

now

termination of the temporary tax

the conclusion that the country is
questions, but I think I large gains in employment and in increases would cut revenues in not overbuilt—that the high rate
considerable light on output per manhour.
the fiscal year 1953-54 by only a of capital formation of the last
them.
(6) When the gross national little more than $2 billion, it seven years has
merely made up
H
Y
product increases at about 3.5% would cut revenues over a full for the
abnormally low rate of
As a background for a consid- ir? terms of constant prices, the fiscal year by $8 billion. Hence, capital formation during the deeration of these matters
let us yie*d
°f present Federal taxes it would probably create the need pression of the thirties and the
to these

shed

can

look

"and

briefly at

grows by roughly $2.5 billion a for

few present facts
probable developments in the
a

year*

the

immediately

vears

ing the last five
ber

the

num-

by 4.2
800,000 a

700,000

births

the

--1

The

the

depres-

severe

increase

decade

population

the

postponed,

defense

peak

spending is

fifties

chance,

the

If, by

later.

1946.

any

forties!

during the
.forties, population

cash

budget of the
Can the present high rate
in balance at investment spending be kept

were

of
up

spending, the for two or three years longer? The
offsetting a drop in de- present high rate of spending on
fense spending with a rise in pri- industrial plant and equipment is
vate spending could be consider- one of the principal supports of
ably simplified. If the govern- the current high level of employment planned to cut its defense ment and production
Must one
task

increased

19.8

than

million.

this increase

half

the decade when the birth

years of

rate jumped by more than 25% to
the highest level it had been since
ihe early
is

twenties.

Even if there

gradual drop of one-third in
the birth rate by 1960, the rise in
•population between 1950 and 1960

$5 billion a year, thus raising private incomes after taxes by $5
billion a year. This increase in

increase of

not

reproducible

wealth

per
capita
plant and equipcapita have been in-

industrial

and

rate.

-far the drop that is expected has
not started—there were a few more

and March 31, 1954,

births in 1952

force—in other words, the country is not overbuilt; (3) private

nate on June 30 and Dec. 31, 1953

knows

one

wealth

abnormally large in
relation to population or the labor

will happen to the birthrate. Thus

per

creasing at

abnormally rapid

assumes that

than in

1951.2

The

range

of probable population in-

crease

for the decade of the fifties

be put at between 22 million

-may

and 26 million.

are

allowed

(1)
proportion of gross narough estimate tional
product devoted to capital
the Eisenhower Ad- formation
has not been high.
In
ministration will be able to make
year 1952
the proportion of
moderate cuts in most items of the the
gross
national
product debudget submitted by Mr. Truman
voted to private capital formation
in January.
On two important 0f ajj
(industrial plant and

out.

run

This

immediately ahead will probably

bems (interest payments and exPenditures for farm price sup-

increase at the rate of about 700
1)00 per year

port)» however, the Truman estimates seem substantially too low,-

(3) The labor force in the

(4) The

economy has

ItsVroductive
:25%
at

and
to

fn^

quarter of

tArmc

K"breaklnf
bfcause

ln, autput

1QS9

?o?f

l«dfi

quarter of 1952

27%.

was

7*
(5) The economy has
Crease

.35%

ouipui

year

output

2.5%
per

little

capacity

roughly

result of

manhour,

more,

/r+

efxpendbures are cut
budge}
in theT "3?'

thnll then tax cuts whlch

military and eco-

they are substantially

operating

1 Qdfi

Thl

ictriirAc

but .°n

was^operatlnrfairiy ll°m

panaHtv

«a5?P
f r

increased

was

l^st

capacity in the

1952

*££*5

since 1946

•close

years

and

result

¥ #}e Sr™th of the labor force,
.In
dollar
terms
this
mpnnc

equal the
expenditure cuts, and therefore
raise private incomes after taxes
by the amount of the cuts in defense spending, will preserve but
not increase the deficit in the

budget. On the other hand, if the

budget is brought into balance by
cutting taxes by less than the reduction in defense spending, private incomes after taxes will not

rise

by the full amount

in defense outlays.

it will be far

drop
In that event,
difficult to

Mfer from the increase in
capac-

certainly it will be

difficult.'

PUi^tm terms
fJ95Ld°UforiiW"y ? bd~
Hon above 1951.
This small m'

dr0

gests

the

defe°se spending sugfollowing five conclu-

/1X

1949

1950

and

1952

the

was

billion and between 1950 and
1951,

*25.9 billion. These large increases
were

the

1U. S.

result

Bureau

Rep°rts'
2 Federal

Security

of
the

abnormaliv
y

Census, Current

Series

Airencv

20'
Office

No„f

1QC9

1952, p. i.

close to

balance

possible.

inventories)
1929, it

year

igin

19%-

DuSigfee

1013

prosperous

eight-year period 1922 to 1929 inelusive, it was about 15.9%.3 The

The number of profes-

sional research workers in industrial

and

research

governmental

laboratories was four times as
large in 1947 as in 1930, and it has
increased considerably since 1947.
Industrial

research

significance

great
it

because

Sives management extraordinary
new power to determine within a
considerable range the supply.of
attractive investment opportunitiesmust. expft that busi-

just

(2)

Economies in

government

ulariy useful in the
defense Spending.

year

of peak

Anyv.

increases

should be

^ssravanng arop J" expenditures
fo1 consumption.

The mere state-

throwing

taiJg
its

the

spending at

yate

time

investment
if the

course

were

erate

and

drop

slow
if

when

pri-

in investment
uit

and

assume

dollars

'rise

mod-

being offsefe

were

raised to offset the drop?

expressed

ing

dropping

and industrial plant and equipment 14.2% between Jan. 1, 1946
and Dec. 31, 1952. Plant and
equipment per civilian worker increased 18.0% in the same period.
During the depression and the
war private reproducible wealth
Per capita and industrial plant
and equipment per capita and per
worker actually decreased, if one
measures them at cost less depre-

into

country

making drastic cuts in

jn 0ther kinds of spend-

such

spending

consumer

the'government

might believe that
it could safeiy cut defense spend-

ing if it accompanied the cut by
reductions in taxes,

V
if

investment
other

can

types

that

the

spending
of

drops,

spending
of

volume

Let

gross

constant purchasing power. The private investment falls within the
reason was that. during much of next several years by 15%, or
the depression and the war, re- about $7.5 billion a year. What
Placements did not equal depre- types of spending could be in¬
ciation. At any rate, private re- creased to offset the drop in priPr°ducible wealth per capita at Vate investment?
tbe end °f 1952 was not quite 7%
Expenditures by states and lohigher than on Jan. 1, 1929, plant calities for goods and services
f/1
equipment per capita were have . been increasing steadily
the same as in 1929, and plant and since the end of the war and beequiPment ^ civilian worker fore, rising from $10 billion in

9?^ 2-5% Sreatf thaa iT} ?946 to $23 3 billion in 1952.Dur-

™29' ^encethe country cannot

mg the last several years the m-

men at work and about 30% more
plant and equipment than in 1929,
{he country turns out twice as
much product.

iooq

1952

namelv

was

the

same

10^

1929, namely 10 5%

are m°re efficient. With 35% more expenditures

are
still slightly
smaller in relation to the national
than

product

1952 and 6.9%

in 1929 — 6.7% in
in 1929. Much of

Since a considerable part of the
output of the country today is
Prpduced b y the government

outsjde

^ab'cXpaSon^of p^ant
Ier 10 niaxe comparisons of plant

and industrial^ plant and equip- but there have also been large

?nd equipment expenditures in
fe^ms of the proportion of gross
privately produced output

private reproducible wealth
of

ment

households

capita

creasing

per

have

capita

.ate

capita

been

abnormally

going

rep^oducibPle

in-

rapid

increase

weaith in the

the increase in state and local

ex-

penditures has been the result of

advances in wage and salary rates,
increases

outlays

roads,

schools, water supply, sewerage,
and other public works. A considerable backlog of need for public

mtp p^aJ^t and equipment In 1951 geven
g
between
1946
and works grew up during the war
and 1952, a little more than 12% 1952
j h
.
t pointed out
when public construction was
?f+th^ private gross product went was'17<9%; the increase in indus- limited. The need for public
into
industrial nlant and
eaurn•.

ducible

wealth

(public

and

pri-

raised the Proportion of gross Vate) outside of households of
pr°duct going into capital forma- 13.9% in the 10 years preceding
tion above the level that has pre" 1929, of 21.5% in the 10 years prevailed in other investment booms, ceding 1919, and 24.3% in the 10
The

wealth

private
the

reproducible

rountrv

outside

years

ahnnrma^v

preceding
.,

1909.
.

ndfv

rapid than during the twenties

°t

country is

the kindof figures needed to
stmct

eon-

consolidated balance sheet

shifts

in population, and the
g^at increase in the number of
automobiles. For example school
enrollments between 19a2 and
1957 are expected to increase five
million or nearly 20%; the truck
population

It is evident that the increase in doubled
wealth per capita and in plant and miies on

E-iSH'"- Sr" s-rs %r.rsr sszvsi
the,great

on gross

national product

gross

capital

OR'.

figures to the definitions in

use

1952.

the

has

country

1940,

the

and

car

American highways are

»/.r" r

and nearly 40% greater than m

Sinc® the increase has been going

Planning and executing public

Z canitoTrms HShaTheenn^nidn WOrkS iS USUa"y 3 Sl°W Pr°CeSSPer c.aPlta terms, it has been rapid,
one

compelled to expect

df0P within the next tw°

t^" The Sgures ^hTw^Sat f.ears

the Pr°p°rtion of private

since

the decade preceding the twenties. 1946.

Hence

3 The figures

STwL POStPOned- iESlSfH
V^gh^a^sSnenfofthe6' ataifalfe

temporary tax

the combined drop in the two
hinds oi spending will produce an

ture)

gross

ar% baSed|, °n

be safely delaved bevond the

J" investment spending, and that

be regarded as overbuilt. Of crease has been from $1.5 bdhon
course< botb. mea
e^pment to
bllll0n a
Jbe+fe

O) Defense expenditures which
can

drop in investment spending will
coincide with the drop in defense
spending, that tne drop in defense
spending will aggravate the drop

national
duct
t into industriai piant
and equipment (including agricul-

proportion of the

operations and other cuts in gove™ment spending will be partic-

Peak year
ate

15 2%. in

the

11 Is Particularly important ™| ™
men
year of peak defense "d eauiumentisnot
as

$22.4

that H1 the

increase

dollars)

housing,

i4.9%.

(2)
T.

is-"f;
(in brought
"terms of

was

sions:

urease was

due to bad second and
third quarters—the
result, in the

equipment,
was

present investment boom has not

as
This brief anaiySis of the probstrikes, 7lem of
adjusting the economy to
mdnch affect the volume of emand

t includes agriculture as well
the nonagricultural industries.

ajy for various reasons, such
•changes in demand
1

American

ciation

reproducible

ment

what

population.

million

the country outside of households
and industrial plant and equip-

ment

over

increase

following principal facts
out: (1) the proportion of

private

bon to $6 billion) if the temporary tax increases, which termi-

present investment boom.
The

This is

Ofie must allow for the fact that
stand
the population and the work force
incomes after taxes might be ex- gross national product devoted to of the country are growing. In
Pected to produce a more or less capital formation at the present Per caPlta terms private reproequal rise in private expenditures time has not been high; (2) the ducible wealth increased 17.9%

consumption and investment,
During the coming fiscal year
(1953-54), which will probably be
would be as great as between 1940 the peak year in defense spendazid 1950.
A smaller drop in the inS, the cash budget of the govbirth rate would permit an in- ernment will be in the red by $2
crease of 24 million in the present
billion to $4 billion if no tax redecade, and a still smaller drop ductions are made, and by about
in the birth rate would permit $2 billion more (a total of $4 bila

which

eovern-

the

in the last four

was

industry.

done

|100 billion in ment of the P°|slbl^y' ^etvher^
}952 dollars, or 29%, over Jan. 1, ? "
iTannen No
1946. Industrial plant and equip-

outlays by $5 billion in a year, it not expect an early drop in mcould without destroying the bal- ves ment spending? Let us look
by ance m its budget, cut taxes by at the principal facts about the

reproducible

under one-third in seven years,
Nearly three-fifths of the private
reproducible wealth outside of
households consisted of industrial
plant which, at the end of 1952,
represented in terms of 1952 dollars a cost less depreciation of
roughly $446 billion. This was an
increase of about

likely to be considerably greater
than

private

represented a cost less
depreciation in terms of 1952 dol-

the

the peak of defense

reflect

number

sion in the thirties.

(2)

offsetting rise

government

small

during

spending?

will

families

about

private

500,000 to
drop in the

This

year.

relatively

bring

less,

from

range

number

somewhat

research

being

ness wl.
use .industrial research
next two or three years to reduce ideal time for making the increase lars of roughly $770 billion. It has ?n aa increasing scale to create
defense spending by, say, $5 bil- in social security taxes—an in- increased by about $190 billion in lnvestment opportunities,
lion or $10 billion a year, can we crease which must come sooner or terms of 1952 dollars since Jan. 1,
Is there not danger that the

increased

total

wealth of the country outside of
households (plant, equipment, inventories, and dwellings) at the

secu-

for

industrial

economic

Indeed, the middle of the period end of 1952

If tbe country is able within the

Dur-

average

will

Estimates

have raised-

Between 1952 and I960 the

increase

the

nast.

years

families

millibn

year.i

ahead

considerably less than in

in Second World War.
The

(5) The increase in social

vears

reductions

Let us now look briefly at each rjty taxes, scheduled
the four basic questions that I January, should not be

(1) The rate of family formation
will

substantial

spending in 1954-55.

fff

economy:

erable extent by the large volume

unsatis-

°r

much

the

backlog

some

of
.

Several

three U

tba ratteh°f 1^1°TaI yearS at least wU1 be required ^
^be other hand, the fact meet it. Outlays for state and

droP to be moderate, unless it is
aggravated by independent influ-

JO-I
be expected
for

few

therefore, may

to continue to rise

years

more.

The

rise

.Volume 177

Number 5204... The Commercial and Financial Chronicle

well be in

may

dollars

excess

billion

year.

great opportunity to increase
expenditures is given by toll roads.
•

The

demand

limited-access

for

roads for the

use

fic

that

the

best way

for in¬

dustry to meet the problem of a
fall in defense expenditures is to
be prepared to bring out new and
better goods.

spend¬
little has been ing offset by reductions in taxes,
done
to
meet
it.
Enormous and with reductions in private in¬
amounts have been spent! on high¬ vestment offset by higher state
ways which were intended to be and local expenditures and by a
through highways. Unfortunately, rise in the proportion of personal
access to these highways has not incomes after taxes spent for con¬
been
restricted
and
local
busi¬ sumer goods, it ought to be pos¬
nesses
have
been
permitted to sible to maintain a high level of
grow up along them.
Conse¬ production and employment durquently, the roads which were in¬ ings the next several years.
is

great,

tended

for

not

undermine

work

either

the

incentive

less certain about the effect
incentive to
There

save

two

are

the part of man¬

agers or of men in overalls.

With any cut in defense

and

of through traf¬

(1241)

business

well

assets.

the

pated

why it

would be possible to raise substan¬
tial additional amounts in taxes
work.

One

that

there

are

enterprises

are

supplied with liquid
managements
antici¬

material

shortages,

l|M|LMMI. IfSII^

AlllDQIly V1113 Ulf6Cl8f

they

would quickly attempt to build up
inventories.
This would produce
the

sort

price

inventory boom and

rises

that

undermining the incentive latter half

without
to

fairly

invest.

reasons

tion

quarter of

occurred

1950

1951.

the

and

first

Recollections of

large quantities of income in this the subsequent decline in most
country that are not taxed at all prices would be a moderating in¬
or
that are taxed at fairly low fluence, but the government would
rates. The second is that the de¬ undoubtedly have to take steps to
mand for income in terms of time
and effort is

demand.

control

the

accumulation

in¬

strong and stubborn ventories.

When

time and ef¬

Finally, the large increase in
defense expenditures would stim¬
Anthony L. Villa
given income, experience shows ulate unions to make
has "i Up to this point I have been
wage de¬
that men put forth the additional mands. Even
increased on roads intended for making the
during the last two
optimistic assumption
Anthony L. Villa, partner fm
time and effort. In other words,
years while the wholesale price
through traffic, the need tor that the economy within the next
Jesup & Lamont, New York Cityv
through-traffic roads has been two or three years will have to up to a fairly high price for in¬ level has been drifting slowly has been elected a director of the*
come in terms of time and
effort, downward, wages, as measured by
growing. Limited-access highways meet the problem of a drop in
Jefferson Lake Sulphur Co.
the demand for income is what
can
straight-time hourly earnings,
obviously be operated as toll defense spending. It is a reason¬
economists call an inelastic de¬ have
increased considerably faster
roads, and
many
thousands of able assumption, but, after all, it
mand. This means, as I have said, than
miles of toll roads would be self- is
output per manhour—in fact,
only an assumption. It is pos¬
through

traffic

gradually been taken

cal

traffic.

over

local

have

by lo¬

fort are required in order to earn
a

traffic

supporting. Hence, the need for
through-traffic roads to service

that

sible that

shall have

income becomes harder to

meet

acquire, men strive more dili¬
a
rise
in defense expenditures.
gently and vigorously to obtain it.
the 54 million automobiles, trucks, The
technology of war is in a state
Furthermore, the demand on the
and
buses in the United States of rapid flux. This tends to keep
represents

important

new

in¬

vestment

opportunity. It is not a
large enough investment oppor¬
tunity to provide the increase in
spending which will be needed to

offset the drop

defense

expenditures

part of managements for a good
The profits record is also a determined

up.

trend of international relations is
and stubborn demand. As profits
The assump¬ become more difficult to
earn,

quite unpredictable.
tion that

drop in defense spend¬ managements strive harder to earn
ing is ahead, rests upon a second them.
Incidentally, this is the
assumption, that international re¬ reason why competition stimulates
a

in defense spend¬
ing. It is, however, a sufficiently lations will not get worse. Cer¬
large investment opportunity to tainly, no responsible policy maker
help. It is important from several can exclude the possibility that
points of view that the nation in conditions will get worse. Let me
the next several years embark conclude these
remarks, therefore,
upon a well-planned and large- by asking whether this country
scale program of toll roads.
can stand a substantial increase in
The- principal source of
new
expenditures to offset the drops
in investment. spending and in
defense spending must be a rise
in

spending for consumer goods.

There

are

two ways of increasing

this spending. One way is to cut
taxes as defense outlays are re¬

defense spending without experi¬

encing inflation

other bad ef¬

fects. This general question breaks
down into several subsidiary ques¬
tions:

(1)

would

increase

defense

spending force a lower
standard of consumption;
(2)
woiild

the

country

able

and

willing to pay for substantially
larger quantities of defense goods;
portion of their incomes after (3) would substantially larger de¬
taxes on consumer goods. During fense expenditures produce seri¬
the year
1952 consumers spent ous inflation. In order that we
92%
of personal incomes
after may have a more or less definite
taxes for consumer goods. During idea concerning the magnitudes
the last quarter of 1952, they spent involved, let us suppose that it is
91.3%. In previous years of high necessary to raise the rate of de¬
employment, the proportion of fense spending in two years' time
personal incomes after taxes spent from the present level of $50 bil¬
for consumer goods
has been lion a year to $70 billion. Such an
higher.
In
1929, for example, increase would fall far short of
95.5% of personal incomes after the needs of a full-scale war, but
taxes
was
spent for consumer it would imply a considerable ac¬
duced.

The other way is to induce
individuals to spend a larger pro¬

goods, and in 1940, 95.1%. Past
experience indicates that it is not
unreasonable
to
expect around
95%
of personal incomes after
taxes to be spent for consumer
goods. Had this been the propor¬
tion
of
personal incomes after
taxes spent for consumer goods
in the last quarter of 1952, per¬
sonal
consumption expenditures
would

rate

have

the

been

$229.9

billion

instead

drop of around $9 billion in de¬
fense spending by a higher rate of
spending for consumer goods even
if no drop in personal income taxes
accompanies the cut in defense
spending.
a

rise in the pro¬

portion of personal incomes after
taxes spent for consumer goods
be brought about? Some business
men
will
promptly reply, "By
more and better selling effort."
I
do not wish to disparage the de¬

dices of
more

consumer.

interested in

quality goods
prices than I
barded

Hence, I am

new

and better

at more attractive
am in being bom¬

by bigger and more pre¬

tentious advertisements and

urgent sales talks.

I suppose that

these bigger ads and more urgent
sales

talks

produce some sales,
but I have the strong suspicion
that consumers are very much
like

bacteria—they

develop

im¬

munities to certain things.

Just as
develop immunities to
anti-biotics, I suspect that the
American consumer has developed
considerable immunity to modern
bacteria

selling methods.

Hence, it seems

"cold"

so-called

(1) Would

increase in defense

spending force a lower standard
of consumption?
I pointed out
that the

its

annual

pear
that the standard of con¬
sumption would not be impaired.

instead

The effect of

higher taxes

upon

willingness to save and to invest
is quite uncertain. The topic has
a number of complications, and I
shall not prolong these academic
remarks by discussing it.
Whatever may be the theoretical
possibilities of raising substantial
additional amounts of revenue by
taxes without harmful effects, I
am sure that Congress would not
be willing to impose the right kind
of taxes.; In fact, only grave de¬
velopments abroad that created a
feeling of emergency would in¬
duce Congress to make substan¬
tial additions to any taxes. Per¬
haps the developments which led
to

substantial increase in defense

spending
sense

might

also

create
a
But
the

emergency.

is that the increase in

reason

defense spending would

be more

its

concentrated

the

pattern of buying in directions
did not represent the first
of

buyers.

defense construction.
funds

that

are

now

Hence

some

going

into

considerable
ary

amount of inflation¬

financing.

I do not know the

amount that could be financed by

non-inflationary

but

means,

Would the country be able would expect it to be less than $5
and willing to pay for substan¬ billion a
year. Let us hope, there¬
tially larger quantities of defense fore, that the nation will not be
goods?
Many people believe that put to the necessity of substan¬
the present tax
burden of the tially raising its defense expendi¬
country is so great that additional tures.
taxes would
dangerously impair
(3) Would the larger defense
incentives to
save,
invest, and.
expenditures produce serious in¬
work. Whether or not $20 billion
flation?
I have already indicated
a year could be raised by taxes in
that the government would prob¬
ways that would not be harmful
ably be unable to finance $20
is an academic question.
Permit
billion additional defense expend¬
me, however, to make several brief
(2)

academic
gress

political
much

observations.

were

willing

considerations,
an

Con¬

discard
even

additional $20 billion

could be raised in ways thai

would

that

means

2.5%
labor

costs in most industries have been

slowly rising. In the long
price

level

labor

costs.

must

Hence

labor costs

means

adjusted to
slow rise in
slow

the

run

rise in

the

price level.

are

able to improve their bargain¬

Unless employers

ing

Offering Underwritten
Peninsular Telephone Co.,

is of¬

fering to the holders of its com¬
mon stock rights to subscribe afc
$40 oer share for 73,241 share*
of additional common stock at the*
rate

for

one

held

record

each five?

March.

18, 1953. The rights will expire a£

power relative to labor, labor
costs will continue to rise and the

3:30 p.m.

Certain

them.

ployees of the company may sub¬

substantial

advance

(EST)

April 1, 1952.

officers

the

and em¬

defense expenditures would

scribe pro

strengthen

taken through exercise of

the

bargaining

posi¬

tion of labor and weaken the bar¬

gaining

position
of
employers.
Thus it would accentuate the pres¬
ent

inflationary effects of rising

labor costs.

conclusions

that

are

the

rata for any shares not

rights

underwriting group headed,

by Morgan Stanley & Co. and
Coggeshall & Hicks will purchase
any
shares not subscribed fim
either by the exercise of rights air
the

under

offer

officers

and

country would probably have no employees.
' •.
•
serious difficulty in meeting the
Proceeds from the sale will be
production problems created by used to finance part of the com¬
the need for substantially larger
pany's construction program.
quantities of defense goods, but Major projects include installa¬
that

the rise in defense spending
raise economic ,problems

would

that could not be met with entire
satisfaction.

Since

some

inflation

would

tion of

approximately 84 toll posi¬

tions in various exchanges, 16,10(1

central office

automatic

lines

equipment

various exchanges

inevitably accompany a and installation
of
remaining
substantially larger volume of de¬
equipment necessary to establish
expenditures, the sort of nation-wide toll dialing through¬

greater part of any large increase
in defense spending would have bad effects that one fears from
out the company's entire system.
be met by borrowing.
Hence, higher taxes would not occur.
The company operates wholly
the
problem would be one of People as a whole would not be
within the State of Florida and
devising government obligations getting richer, if the rise in de¬
provides telephone service in ap¬
which would be eagerly bought by fense expenditures were about $10
proximately 100 communities, in¬
real savers, thus avoiding govern¬ billion a year, but they would not
cluding Tampa,
St. Petersburg;
ment resort to the banks.
be getting poorer either and many
Clearwater,
Lakeland,
Sarasota
of them would experience the il¬
Creating a large additional nonand Bradenton. During the past
bank market for government se¬ lusions of well-being that are cre¬
five years the number of tele¬
curities on short notice would be ated by rising money income even
phones in service has increased
the purchasing power
of
difficult in the extreme—probably when
from around 108,000 to slightly
impossible. We are talking about incomes does not advance.
over
188,000 as of Dec. 31, 1952*
a possible rise in defense expendi¬
Peninsular believes it is the first
VI
tures of $10 billion a year. To fi¬
Let me conclude these remarks company in the country operating
nance these out of savings would
exchanges over a wide area ta
require that virtually all of the by emphasizing that my discussion
have
installed dial equipment
normal annual increase in the na¬ of the problems that would be
tional income go into government created by a substantial rise in throughout its service.
At the annual meeting to be
securities.
Undoubtedly the rise defense expenditures must not be

dur¬

that

manhour

per

This

mortgages or being used in other
ways to finance non-defense ex¬
able goods industries.
It would
create bottlenecks and more or penditures might become available
for the purchase of government
less serious shortages of various
securities. The realistic view, how¬
materials.
Hence, the only way
ever, is that an increase in defense
in which the country could con¬
expenditures by as much as $10
tinue to spend the same amount
billion a year
would require a
on consumption would be to alter
less

fast, if the rise

fense

in defense spending would be ac¬
The
impairment might not be particu¬ companied by a variety of mate¬
rial controls that would limit nonlarly serious, but it would exist.

The

output
year.

price level will have to rise with

discourag¬

This would not be quite true.

and better sell¬
choices
ing efforts, but I have the preju¬

sirability of

the

country is able to increase
output at the rate of
roughly $12 or $13 billion a year.
If an increase of $20 billion in de¬
fense spending were spread over
annual two years, therefore, it might ap¬

$221.0 billion. In other words, it
ought to be possible to offset a

But how can

tivation
war.

efficiency
ing it.

in
a

Peninsular Telephone

than twice

itures

year

without resort to in¬

flationary methods of borrowing.
There would be other ways in
which

the

country

would

threatened with at least
ate rise in

interpreted

prices. A large propor¬

meaning that I

ex¬

held March 25, 1953,
vote

will

would
assert that it is a remote possibil¬
ity. Far more probable than a rise
in defense spending are drops in
defense spending and in invest¬
ment spending.
This means that
business should make plans
to

common

however, that

sure,

bring about
in

consumer

two

international

pel

consumer

no one

substantial increase
spending within the
three years.
But if
developments

com¬

rise in defense

substantial

spending,

plans

for

increasing

spending

must

three

for

later

execution.

the

Hence,

great uncertainties in international
relations

which

will

determine

and

government strive for flexi¬

bility

policy

making

and

The

Dividends
have been
per

spending

goes

reported

total

the

common

stock

paid at the rate of $2.50

share per annum during the

dividend of
share has been de¬
payable April 1, 1953 to the
outstanding after the 20%

last four years and a
cents

per

stock dividend

paid Feb. 27, 195&

Wolf Land Co. Formed
CHEYENNE, Wyo.—Erving WoK
formed the Wolf Land

pany

and defense

company

preferred dividends to $3J84
share of common stock.

has

instead of down.

439,454 to

after
per

positions if the unexpected hap¬
pens

involved' in
increasing the

Operating revenues of $12,115,Q8X
for the year ended Dec. 31, 1952.
Net income Was $1,453,740, equal

prepared quickly to reverse their

share*

659,181.

require that both business

split of

thereby

number of shares from

clared

years

the

sale,

influences predominate in our
during the next several

stock by a stock

shares for each two

eluding
this

economy

outstanding of record at the closer
of business on April 20, 1953, in^

whether inflationary or deflation¬
ary

stockholder*

proposal to in¬
number of shares of

the

crease

quickly laid aside and postponed

moder¬

rise. I believe that
the chances are against it. I am
suchi

pect

Com¬

with offices at 2103. Carey

Avenue, to engage
ties business.

in the securi¬
,

(1242)

The Commercial and Financial
Chronicle...

Continued

jrom first

the

option becomes exercisable; further, that the
to have paid this out of
current
earnings at such time as an integral part
of the optionee's
compensation for that fiscal pe¬

page

Hearing Deadline Is Near

corporation is considered

Proposed SEC Rule on Of ficer
And Employee Stock Options
day he

riod.

stock

had

only that

been

the

increased

outstanding

the

extent

the

optionee took down.
proposed rule this would still

When

happened at all. Such
purely fictitious.

of the

1947

time

entered

was

into.

The

use

later

was

have to make
rule of
tax

the

which

any

Congress, in enacting Section 130A of
Code, and the Salary Stabil¬
Board, in implementing the salary stabil¬

accountant,
and

ization provisions of the Defense
Production Act,
selected the grant date as the time for
determin¬

We do not
the

measuring the compensation

any.

Co.

offering of 750,000 shares

Public

Service Electric
stock

common

was

terday (March 18) by
investment

Gas

made yes¬
a

group of

firms

headed jointly
by Morgan Stanley & Co.; Drexel
& Co. and
Glore, Forgan & Co.
The stock is priced at
$26 7/s per
share.
Proceeds from the sale of these
additional shares will be used to

help finance
struction

the

company's

con¬

program which current¬

ly is expected to total about $131,-

000,000

1953

and

cipal projects in this
two

1954.

Prin¬

program are

turbine-generators of 145,000

kilowatt capacity each

now

being

installed

the

gas

Service

electric

and

the

areas

most

Burlington

and

the

Population
with

both

around

state's

operating

territory
electricity and

served

of the

gas

Service
and

its

Co¬

company's operating
have

100,190
1952.

increased

1948

Net

service

$2.02

reve¬

from

$170,$213,923,175 in

income

for

1952

was

per

number

the

common

average

out¬

standing during the period.
Dividends

currently being paid at
quarterly rate of 40 cents

the
per

share.

receiving

comments

gestion therein,
cation

sent

would

well.

appreciate

the

Congress.
addressed
Financial

a copy

the

views

SEC

ex¬

communi¬

any

members

Communications

should

to
Editor, Commercial and
Chronicle, 25 Park Place, New

7, New York.

"While the three
pages of explanatory material
contained in release No. 4803-X
intended to make
for acceptance of the instant
rule is not given
here'because of space
limitations, the text of the

rule^the Commission

proposed to adopt follows:

"(§). Compensation

officers and

employees

in thb form of

options granted to acquire capital
stock, should be reflected in the
profit and loss
account, at the time the optionees have
complied
fullyf with the terms of the option agreements
and

thereby become entitled

tions*, in

amount

to exercise the
op¬

equal to the

fair value of the stock
exercisable

excess

over

the

option

price, at that date.
'"(b) A brief description of each
option arrange¬
including (l)'the title and amount of se¬
curities subject to option; (2) the date or dates
ment

which the options

upon

dates

upon

titled to exercise the
or

were

en¬

options; (4) the option price

prices; (5) the fair value

tioned

granted; (3) the date

which the optionees become

the

per

dates

share of the op¬

the

granted; and (6) the fair value

options

per

were

share of the

optioned shares which became exercisable
during
the period should be shown in
a footnote to the

the

Shoppes Inc. Stock
group headed
Lemon & Co. is

stock

Johnston,

offering 229,880

common

Shoppes Inc.,

food

per

chain,

price

$10.25

share.

Of the 229,880

shares being of¬
fered, 195,880 shares are being of¬
fered

holders.
of

the

behalf

Proceeds

additional

from

the
an

,16,000

publicly
company, ^plus
additional

Hot

and restau¬

was

$19,737,935
and

room

counter

accounted
for
$10,172,500.
For the previous fiscal
year gross

income

sale

was

$8,262,400

shares,

and

behalf

$15,682,200, of which
from

was

counter

dining

service.

Aug. 1, 1951 to

company for

21.5

its

cents,

Dec.

and

16, 1951

that

room

Unaudited

figures show that per share
ings on the common stock

proceeds

18,000

being offered by the
sale

the

chain

dining

sales

pertain share¬

being offered
of

the

which

this

earn¬

from
were

figure

employees, will be increased to 47.1 cents per share
working capital. for the period Aug.
1, 1952 to Dec.
Hot Shoppes
Inc., incorporated 21, 1952.
in 1929, operates 45
eating estab¬
added to general

lishments in 9 States and the Dis¬
trict of Columbia, with the major

Bankers Offer Hot
A

rant

from

the common stock

are

sub¬

sidiary own and operate a fleet of
buses which
comprise the largest
fleet
operated
in
mass

transportation

The
nues

single

United States.

which

on
the
preferred and
dividend
preference
common
stocks
to

cities.

ordinated Transport

rule bv

matter

distribution

larger

Public

any new

instant

$23,529,583, equal after dividends

3,186,515. A wholly-owned

subsidiary,

the

ex¬

utility company
densely popu¬
and
heavily industrialized
in New
Jersey, including

CHRONICLE

financial statements."

most

lated

necessity for

tions.

gas

serving

can

required by
law without
reflecting therein any change in the
form of
compensation resulting from these op¬

system.
Public

In its view it alone

purposes

the

Generating Station

the

see

require

installed in the
Kearny Gener¬
ating Station, one turbine-gener¬
ator of 185,000 kilowatt
capacity

pansion

pressed in the above editorial, or on
any
related phases of the
subject under dis¬
cussion, and in harmony with the sug¬

ac¬

mitted to file their financial
statements with the
Commission for the various

option price and the market price at the time

Public

em¬

change in accounting practice.
We believe that
employer corporations promul¬
gating employee stock option plans should be per¬

The SEC view maintains that the
value of the
option is the amount of the spread between the

better geologist than the
geologist,
lawyer than the lawyer—at least so

Commission

would

dure indicated in the American
Institute of Ac¬

itself, but

Congressmen and Senators

York

better

it believes.

ing whether compensation exists in connection
with the
giving of stock options to officers and
employees and followed substantially the proce¬

promulgated pretty much
by these bureaucratic

For this reason, it devolves
upon those

The

a cor¬

recognize the public interest and the interest of
investors and it is a better accountant than the

Both the

Service Gas & El. Stk.

play in

may

not in accord with

are

SEC cheek is colossal.

the Internal Revenue

Bankers Offer Public

their

company aside from any part

cepted accounting standards and practice.
We are shod
by shoemakers and hatted by mil¬
liners. Everywhere the
tendency is toward the
expert and the specialist. By a
parity of reason¬
ing we should look to the Accounting
Society in
the matter of
accounting problems and procedure.

Congressional Legislation Ignored

involved, if

affairs of the

quirements and hence

a
charge be considered to
compensation, when the amount is de¬

countants bulletin in

zealots.

proprietary incentive toward

tries which the Commission would have

termined largely
by the vagaries of the market
place, is highly unreal."

ization

give them

ployer make concerning stock options are wholly
without rhyme or reason, constitute
fictitious re¬

requirement that such
measure

record and the rule is

in the initial form drafted

believe, that the purpose of
accounting is to correctly record all of the facts
concerning a particular transaction, then the en¬

exer¬

experience demonstrates that the request
comments
concerning its proposed

If it be true, as we

might easily amount to

one-half of its net income after taxes.

ac¬

many

rules have in the main been made
solely for the

entries would be

poration's program to raise capital.

to which it would receive

and

Past

Commission

employee stock option plans

share, the company would
charge to income under the SEC

$200,000

benefit

$40

the

also to

If 10,000 shares became subject to

option, the market value of which

into

by the SEC for

ignores realities when it re¬
gards employees' stock option plans purely in the
nature of compensation. The real
objective is not
only to assure a long tenure of key personnel but

require the issuer to charge its income
account with amounts based
entirely on market
fluctuations and unrelated to the
activities, either
of the
corporation or its employees. For example,
suppose a company issued options to its
employees
at the market
price when its shares were selling
for $20, exercisable in installments over
a period

cisable date

make

affected by the instant
proposal not only to ex¬
press their views to the Commission

The

dates could

of five years.

will

other fields.

earnings at all but, by the stockholders out
appreciation in the market value of the stock,
inasmuch as such option stock
usually comes from
the pool of unissued stock.

special panel
of the
Salary Stabilization Board) said, "I feel
strongly that the date the option was given to
the officer or
employee is the proper one to be
used, as it reflects the facts of the transaction at
the

Commission

member of the

the

rent

formerly chief accountant of the
Exchange Commission from 1938

was

which

counting field, and for that matter, into

actually happens in the ordinary case of
options to employees is that such compen¬
sation is paid—not
by the corporation out of cur¬

was

and

our

country be alerted to the danger
attempted, for if the SEC is per¬
mitted to get
away with what it is now trying to
do, you can just bet your bottom dollar that this
will be just the first of
many future incursions

What

auditors,
Touche, Niven, Bailey & Smart (Editor's Note—

Mr. Werntz

this

stock

much esteemed firm of accountants and

Securities and

writing

of what is here

Reasoning Fallacious

kind has

interviewed, William W. Werntz

throughout

spread and that the stockholders of the corpo¬
have paid in as
paid-in capital, or some
other form of
capital surplus, an amount equiva¬
lent to such
spread. Of course nothing of the

Object

be¬

Id the meantime, it is
urgent that all business

ration

day the option was exercised
acquired by the employee.

Esteemed Accountants

sion, of views and comments in

fallacy of the SEC proposal lies in its indi¬
cation that the
employer corporation paid out of
current
earnings an amount equivalent to the

the

SEC

proposed rule.

are

SEC

comment

yond March 25, 1953, the time now fixed, so that
an
hmple opportunity will exist for the submis¬

The

obliged to reflect in its profit and loss account
a
sum
representing the difference between the
option price and the market price or the reason¬
on

options

considerably extended

rights accruing at the
granted but with rights ac¬
cruing only at the exercisable date.

but, in addition, and this is where the
rub comes in, the
employer corporation would be

able value

matter of form with

be true

and the stock

Itjs vital that the time
Release No. 4803-X be

advocates,

seems

time the

number of shares which the

Under the SEC's

Commission

compensation to the income

capital
of

the

us that
overlooking the true nature
employee stock options, the Commission has
erroneously taken the view that these are simply

market

show

spread,

charged

We believe the SEC is too little
the aid and too
much the meddler.
*

account.

given the option, then, regardless of
price or the reasonable value
of the stock
might be when the option was ex¬
ercised, the books of the employer corporation
would

This

should be

was

what the

Thursday, March 19, 1953

concentration of eating places be¬
ing in the metropolitan area of

Washington,
one

For

GRAND RAPIDS, Mich.—.Tames
L. De Looff is now with Wm.
C.

the

chains.

31,

Joins Wm. C. Roney
"

C., where it is Roney & Co., Grand
Rapids Na¬
leading restaurant tional Bank Building, members of
the

the fiscal

1952

gross

year

ended

operating

July

income

New

York

and

Detroit

Stock

Exchanges and other leading
changes. 1

ex¬

Volume

177

Number 5204... The Commercial and Financial Chronicle

(1243)

The

of Current

Business

Activity

week
Latest

AMERICAN

steel

Equivalent
Steel

operations

(percent

Crude
42

PETROLEUM

oil

and

gallons

condensate

Kerosene

output

Distillate

fuel

101.0

AMERICAN

§2,256,000

*2,284,000

2,235,000

2,098,000

Total gas

6,521,850

7,090,000

6,834,000

oil

fuel

ASSOCIATION

(bbls.)

oil

(bbls.)

23,131,000

23,360,000

2,966,000

2,935,000

2,684,000

2,603,00.

10,297,000

10,796,000

10,178.000

10,284,000

9,035,000

9,017,000

8,808,000

9,217,000

159,434,000

157,612,000

19,843,000

20,550,000

Mar.

AMERICAN

23,232,000

21,645,000

ireight loaded

Revenue

freight received from connections

(number

cars)—

152,493,000
22,308.000

CONSTRUCTION

78,152,000

53,554,000

44,432,000

45,807,000

37,747,000

685,016

668,805

690,744

Private

construction

672,031

656,073

671,765

and

COAL

OUTPUT

(U.

coal

BUREAU

and

lignite

Penmylvania anthracite
coke

(tons)

ELECTRIC

Electric output

SALES

;

(per

iron

Scrap steel
METAL

137,273,000

132,430,000

53,601,000

73,907,000

25,812,000

14,030,000

31,622,000

42,229,000

8,100.000

*8,500.000

8,570,000

9,879,000

100

(New

Lead

(East St.

BANKERS'

STANDING—FEDERAL
YORK—As

INDUSTRIAL)

57,512,000

37,360,000

57,000,000

42,558,000

27,106,000

—

DUN

Dollar

8,138,032

8,172,952

8,147,461

Total —
165

180

200

BUILDING
4.376c

4.376c

4.131.-

$55.26

$52.7:

iMar. 10

$4,4.08

$44.25

$42.00

$42.0C

ber

QUOTATIONS):

All

URBAN

(000's

New

29.475c

24.200c

24 200

New

34.600c

34.175c

34.725c

27.425

Additions,

Mar. 11

121.500c

Mar. 11

13.500c

13.000c

13.500c

19.000

construction

CASH

13.300c

18.800c

11.500c

19.500c

94.83

95.60

107.80

108.16

109.79

111.07

111.25

111.81

113.70

109.97

110.15

"110.34

112.56

Bituminous

106.74

>107.44

108.88

102.96

103.30

\ 103.47

Pennsylvania

104.14

Beehive

Production

Unfilled

OIL,

110.88

113.31

2.86

2.81

3.29

3.27

3.10

3.07

AND

3.16

3.15

3.57

3.35
3.55

3.31
.vi*.

3.2

3.54

3.50

3.44

3.42

3.39

3.32

3.31

3.30

LOT

DEALERS

EXCHANGE

Mar. 17

3.16

3.14

3.12

2.99

423.0

419.4

410.4

369,535

—Mar.

251,232

251,149

238,012

Mar.

sales

544,346

437,345

545,961

432,507

107.75

107.84

107.90

110.53

Dollar

(customers'

220,319

331,971

282,30)

(customers'

other

short

Customers'

EDISON

Customers'

Number

Kilowatt-hour

sales

FOR

Total

sales

23,237

137

210

25,769

24,675

28,991

23,027

738,713

697,299

816,983

644,721

7,325

5,405

Short

eb. 28

691,894

812,688

$28,364,497

$32,267,391

193,220

219,520

208,110

All

STOCK

SALES

THE

STOCK

MEMBERS

637,05

NEW

FOR

208,110

193,220

219,520

319*570

350,340

ACCOUNT

sales

$66.91

77.32
62.80

_______

——,_1

manufacturing

41.1

*78.70

72.15

*63.67

60.04

41.8

40.8

42.0

42.7

41.8

39.8

♦40.5

39.5

$1,734

•$1,732

$1,640

1,841

*1,843

1,726

1.578

*1.572

1.520

118.9

121.9

122.3

£11,670,000

£29,808,000

£56,379,000

goods
goods

manufacturing
Durable goods
Nondurable

Index

257,720

206,000

257.290

6,658,330

5,753,150

7,242,340

6,699,130

6,916,050

5,959,150

7,499,630

—

__________

...

goods

COMMERCE

Railway

COMMISSION—

Employment

(1935-39

middle

average =100)

6,945,610

246,480

NEW

CAPITAL

ISSUES

MIDLAND

PORTLAND

Month

GREAT

BRITAIN-

BANK, LTD.—Month oi Feb

CEMENT

Production

(BUREAU

January:

MINES)—

I—1

(barrels)

18,855,000

510,560

484,930

648,940

616,10:

Capacity

640,460

592,820

784,170

Feb. 21

152,460

133,650

198.700

165,840

21,000

12,500

13,000

13,040

off

floor—

TREASURY

the

203,730

170,940

183,980

Net

225,621

248,717

282,634

225,881
34,020

32,300

60,640

22,620

231,015

279,083

340,795

Feb. 21

361,770

263,315

339,727

363,415

1,036,411

987.831

184,920

152,190

208,870

158.830

Feb. 21

974,950

838,905

1,131,757

1,127,835

——

of members—

—

Feb. 21

SERIES

—

DEPT.

—

4—

any

1,159,870

991,595

—

109.9

1.164,237

1,340,627

1,159,354

DI¬

SECURITIES

mnm'rn-rr

„

r|—

$8,797,700

—

«-rt

—

„

$24,581,000

$6,086,500

$275,000,000

267,583,710

267,402,058

260,361,955

50,029

48,176

36,915

$267,633,740

$267,450,235

$260,398,871

610,643

612,775

653,576

-—$267,023,036

$266,837,459

$259,745,294

8,162,540

15,254,/05

LIMITATION

DEBT

(000's omitted):.

amount

that

may

outstanding

time

Total

public debt

gross

Guaranteed

obligations

not

Treasury

owned

the

—

1,286,605

111.4

98.9

10.7.1

105.5

104.5

111.4

Mar. 10

95.9

*96.7

95.3

112.7

Mar. 10

113.1

113.2

112.7

112.3

§Based

new

annual

public debt and guaranteed

obligations
outstanding

Deduct—other
109.4

99.1

99.1
105.6

^Includes 607,000 barrels of foreign crude runs,
1, 1953 as against the Jan. 1,1952 basis of 108,587,670 tons.

109.9

Mar. 10

commodities other than farm and foods

*Revised figure.

73%

February:

Total gross

Mar. 10

87%

—4—Mar. 10

foods

STATUTORY

Feb.

face

12,696,000

22,336,000

Outstanding-

100):

GOVT.

...

commodities

TRANSACTIONS

purchases

Total

13,740,000

15,964,000

79%

GUARANTEED

A.—Month

Net S&16.S

216,730

327,750

-—

products

122,960

Feb. 21

account

MARKET

135,460

—Feb. 21

—

NEW

17,039,000

13,520,000
21,292,000

...

AND

136,640

Feb. 21

—

———:—

157,640

—Feb. 21

—

„

(1947-49

RECT

floor—
Feb. 21

PRICES,

used

Feb. 21

—

20,881,000

739,276

the

Feb. 21

initiated

Meats

Jan.

•$72.40

—.

.....—;

123,170

————.

Commodity Group—

All

46,821,879

$71.27

goods

710,880

sales

Processed

DEPT.

135,230

sales

Farm

716,820

sales

All

$501,348,600

48,349,466

•

Januaiy:

107,890

;

—

purchases

—

628,560

sales

LABOR

ESTIMATE —U.

Feb. 21

Total round-lot transactions for

Other

$527,279,900

48,459,371

HOURS—WEEKLY

129,900

purchases

WHOLESALE

December

658,070

—

Short

28,262,678

$550,591,500

—Feb. 21

sales

Total

Feb. 21

—

initiated

sales

Total

29,364,469

earnings—

INTERSTATE

MEM¬

——,

transactions

Total

30,675,661
of

Shipments from mills (barrels)..—
Stocks (at end of month—barrels)

purchasesl

Other

consumers—

omitted)

Feb. 21

Short

106

*85

372,190

Feb. 21

sales

Total

*111

customers—month

customers

All

170,230

343,190

Feb. 21

sales

Other
Total

(000's

EARNINGS AND

February

sales

Other

111
—

—-—,—.Feb. 21

transactions

Short

100)

Hourly earnings—

specialists in stocks in which registered—

purchases

Other

Total

Average

ultimate

Nondurable

„

170,230

YORK

„

sales

Total

$517,000

ultimate

—

Durable

$27,441,99'

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Other

$504,000

——-

(FEDERAL RE-

Hours—

TRANSACTIONS

Short

$511,000

YORK—

manufacturing
goods

All

Feb. 21

1,810,405

sales—

sales

Total

Sales

Nondurable

(SHARES):

sales

Transactions

2,177,391

Durable

Feb. 28

sales

Other

731,388

$29,216,202

dealers—

AND ROUND-LOT

Round-lot

ROUND-LOT

29,128

146

.'eh. 28

ACCOUNT

Total

24,821

199

Feb. 28

shares—

EXCHANGE

634,091

2,040,795

INSTITUTE:

LABOR—Month

'eb. 28

ROUND-LOT

TOTAL

25,968

.Feb. 28

purchases by

Number

(net tons)

variations

December

from

AVERAGE

832,412

by dealers—

sales

Other
Round-lot

SALES

adjustment

$39,952,157

Feb. 28

shares—Total

Revenue

30,320

936,826

$40,936,217

Feb. 28

sales

Short

31,883

806,963

$36,697,015

Feb. 28

sales

other

sales

6,801,653
6,167,562

427,105

OUTSTANDING—FED-

seasonal

ELECTRIC

Weekly

Dollar value
Round-lot

28,073

869,337

$38,182,423

Feb. 28
__

shares—Total

6,263,544

February:

seasonal

FACTORY

Feb. 28

sales

Number

29,167

sales)—

sales

Customers'

total

6,690,649

—

Feb. 28

short

of month,

end

STORE

for

Month

Feb. 23

orders—Customers'

tons)

PAPER

December

—

Customers'

585,200

Jan.:

tons)

SYSTEM—1939-4!)
of

Number

Feb. 28

purchases by dealers
of

SERVE

Without

STOCK

value

Number

purchases)

(net tons).

stocks at

COMMISSION:

orders—

Number

Odd-lot

by dealers

Number

MINES)—Month

(net

DEPARTMENT

INDEX—

3,311,000

478,700

Mar. 13

*43,738,000

2,626,000

205,178

Mar.

EXCHANGE

tons)

ERAL RESERVE BANK OF NEW
of Feb. 28 (000's omitted)—I

Adjusted

period

SPECIALISTS

(net

437.7

—Mar.

________

AND

coke

Month

—

SECURITIES

—

lignite

tons)

(net

coke

COMMERCIAL
^

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT O*

Odd-lot

(BUREAU

Oven

PRICE

39,255,000

2,365,000

MINES)—Month

3.21

Mar. 17

REPORTER

and

anthracite
(net

Beehive coke

3.35

Mar. 17

100

3.03

3.36

Mar. 17

*■

DRUG

AVERAGE

coal

coke

Oven

ASSOCIATION:

(BUREAN

2.9.

3.17

end

$181,400,000

(000's

February:

COKE

3.18

3.11

—.——Mar. 17

———

OUTPUT

2.72

3.30

INDEX

(tons)

$548,000,000

33,920,000

DEPT.

106.74

Mar. 17

—

$181,000,000

478,711

February

109.24

Mar. 17

orders

PAINT

1941)

106.04

107.62

COAL

Production

activity

105.52
107.44

(tons)

Percentage

105.17
107.27

—Mar. 17

(tons)

59,811

96.'"

110.52

PAPERBOARD

148,974

*78,732

6,284,493

___=

94.86

2.87

—JJ

COMMODITY

222,138

72,186

CORPORATIONS—U.

107.62

110.15

;

received

$430,923

*347,290
*206,597

477,500

COMMERCE—Month

Mar. 17

Group—
Group 4..-,

*$632,619

6,763,204

12.800c

Mar. 17

—

$592,919

etc.

11.250c

AVERAGES:

Baa

313,188

13.300c

Mar. 17

Railroad Group
Public Utilities

S.—

DIVIDENDS—PUBLICLY REPORTED BY

Mar. 17

207,546

alterations,

Mar. 17

—

VALUA-

THE

nonresidential

11.000c

Mar. 17

——

51,388,000
$493,430,000

121.500c

Mar. 17

DAILY

omitted)

Group
YIELD

PERMIT

AREAS

LABOR—Month oi Decern-

Mar. 11

Orders

Mar. 11

34,380,000

$487,487,000

residential

29.575c

■

31,772,000
$489,556,000

omitted):

building

Mar. 11

between

....

DEPT.

Mar. 11

shipped

CONSTRUCTION

TION

$55.26

and

15C

$55.26

stored

foreign countries
7,413,795

Mar. 10
____,

——

goods

Mar. 10

exchange

Aaa

NATIONAL

8,317,000

44,205,000

corporate

MOODY'S

134,818,000

7,543,000

warehouse credits

Government Bonds

Industrials

$234,441,000

120,442,000

shipments

Group

Domestic

—Mar. 14

AND

ton)

Group

$225,052,000

BANK

28:

...

Domestic

Mar. 17

Average

RESERVE
Feb.

Exports

Baa

NEW

OUT¬

766,000

at.:

BOND

ACCEPTANCES

Imports

Mar. 17

$233,509,000

SYSTEM—

(in thousands)..

DOLLAR

106.56

$128,022,000

8,749,000

RESERVE

February

Mar. 17

MOODY'S

$149,004,000

144,900

FEDERAL
of

Based

corporate

Industrials

17,378,000

$131,524,000

GOVERNORS

117,700

Mar. 12

Louis)

Utilities

253,809,000

+3,641,000

652,000

Public

239,877,000

15,181,000

export

(barrels).

554,000

Aaa

Railroad

12,723,000

*121,900

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

Average

10,802,000

583,000

York), at

(St. Louis)

Zinc

13,117,000

17,423,000

122,500

Export refinery at
tin

16,000

18,709,000

(barrels)

Mar.

(per gross ton)_

(New York)

18,925,000

36,000

—

Domestic refinery at

Lead

191,650.000

19,360,000

114,321,000

THE

Electrolytic copper—

Straits

210,591,000

194,611,000

DEBITS—BOARD

Month

RESERVE

lb.)

(per

(E.

214,007,000

20,769,000

(barrels)

imports

226,449,000
205,645,000

18,685,000

output

116,136,000

$223,806,000

INSTITUTE:

gross

PRICES

gal¬

(barrels)

^.Mar.

(in 000 kwh.)___

steel

Pig

35,000

output

(barrels)

107,670,000

85,223,000

COMPOSITE PRICES:

Finished

277,738,000

gasoline

oil

INDEX—FEDERAL

AVERAGE

(COMMERCIAL

AGE

182,565,000

146,460,000

Mar.

BRADSTREET, INC
IRON

(barrels

I
oil

Decrease all stock

MINES):
.

234,962

Mar.

STORE

SYSTEM—1D4T-4D
EDISON

(tons)

DEPARTMENT

FAILURES

$267,788,000

127,203,000

Mar. 12

Bituminous

Beehive

273,663,000

103,156,000

163,085,000

Mar. 12

municipal

$266,241,000

Mar. 12
Mar. 12

Federal

154,900

221,213

INSTITUTE—Month

production

output

Crude

685,500

Mar. 12

construction

5,255.574

92,883

263,424

Refined products imports (barrels)
Indicated consumption domestic ana

BANK

Public construction
State

Benzol

713,112

NEWS-RECORD:
Total

5,645,436

5,129,228

112,391

ENGINEERING

—

5,443,324

5,505,746

therms)

PETROLEUM

domestic

Natural

17,454,000

Mar.

cars).

5,881,561

lons each)

153,678,000

68,025,000

65,476,000
43,628,000

ol' December:

Total

Domestic crude

Mar.
of

(no.

sales

gas

AMERICAN

RAILROADS:

Revenue

ENGINEERING

Mar.

Ago

6,735,000

output (bbls.)
Mar.
Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and uniinished gasoline (bbls.)
at
.Mar.
Kerosene (bbls.) at—
Mar.
fuel

Year

Month

ASSOCIATION—For month of

(M therms)

Manufactured gas sales (M therms)
Mixed gas sales (M therms).

6,420,500

116,963,000

Mar.

6,521,100

Mar.

(bbls.)

output

6,439,800

Mar.

(bbls.)

oil

GAS

January:

oil

of that date:
A

99.1

(bbls.)

are as

Month

Ago

•101.3

Mar.

Gasoline

CIVIL

Ago

§100.1

Mar.
average

of quotations,

cases

Latest

Natural

(bbls.

average

or,

either for the

are

Year

Mar. 22

output—daily

stills—daily
output (bbls.)

Residual

Month

production and other figures for the

cover

Dates shown in first column

that date,

each)

Residual fuel

month available.

Mar. 22

(net tons)

INSTITUTE:

Crude runs to

Distillate

Week

to—

ingots and castings

AMERICAN

capacity)

month ended

Week

IRON AND STEEL INSTITUTE:

liiUH.au.a

following statistical tabulations

latest week

capacity of 117,547,470 tons

public

debt

obli¬

gations not subject to debt liznitation
Grand
Balance

under

total

face

outstanding

of obligations,
authority-.-..

amount

above

issuable

'•■Revised.

^Increase

all stocks

(barrels).

7,976,903

(1244)

The Commercial and Financial Chronicle

€kmfinued from page 5

sjf

Wholesale Food Price Index Holds

at Year's High

Terminating the four-week rise which began about

•The Slate of Trade and
the No. 1 steel consumer, the

Industry

auto industry.

The

;

union bid for

seventh wage round

this year

without at least

The

fully covering price increase, con-

deludes "The Iron Age."

Steel Output Scheduled at 100.1% of Capacity

For Current Week

added cost

would average

$36

export sales of wheat

stocks showed a small decline to 78,053
bags, from
week earlier, and compared with 101,155 bags a year ago.
Coffee remained strong at ceilings. Demand was active but
offer¬
ings were practically nil within the ceiling level of 55.50
cents,
ex-dock, New York.

-gots and castings produced in February was a record for that
month.
The 18,834,627 net tons of steel for ingots and castings
produced in the first two months of 1953 also set a record for that
period and exceeded the output of the corresponding months of
'4952 by 1,041,300 tons.

ended Feb. 27

While

forms

some

demand, others

Feb. 27

date

of finished

steel

are

99,000 in the

100.1% of
beginning March 16, 1953, equivalent to
2,256,000 tons of ingots and steel for castings. In the week
starting
March 9, production created a new
weekly record at 2,284,000 tons
and the rate was placed at
101.3%. For the like week a month ago
(the rate was 99.1% and production 2,235,000 tons. A
year ago when
£he capacity was smaller actual output was 2,098,000 tons, or 101.0 %.

Electric Output Reflects

The current total

Retail trade

period

tions

ended

week's

of 64,506 cars,

total

T
;

represented

decrease of

year

ago,

28,096 cars,
and

-•»
.

•

-i
j

cars compared with 120,900
the previous week.
This was 50% more than

above
kets.

•

Y.Cana.dian facJ°ries turned
against

last week,

7,611

5,424

cars and

cars

out

and

•

^1939'

and

2,465

television

there

In widest demand

consumer

Forceful

response.

was

of the

was

rrf-TKfcf.

mortgage bonds, 3%%

series due

March

1, 1983, is being made to¬
(March 19) by Kuhn, Loeb

day
&

Co.

100.456%

and

accrued

interest, to yield 3.60%. Bidding,
alone, Kuhn, Loeb & Co., won
award of the issue at
on

Tuesday

competitive
its

bid

100.136%.
Net

proceeds from

bonds

will

the

sale

used

the

for the construction of
facilities and for the exten¬

company
new

sion

and

improvement of present
The

program

result

c o m

p a n y's con¬
is expected to

expenditures

about

$23,000,000 for 1953 and $6,800,00Q
for 1954, as additions will be
made
to

generating capacity and elec¬
transmission and distribution

tric

facilities
The

are

expanded.

bonds

will

redeemable

general

redemption prices
ranging from 103.46% to par, and
at special
redemption prices fon
the sinking or improvement
fund,
ranging from 100.46% to par, plus
accrued interest in each case.

Mississippi Power & Light Co*
an
operating public utility en¬
gaged in the purchase,
generation,
is

transmission, distribution

and sale
of electric
energy, and to a minors

extent,
sale

the

distribution

water,
to

and

such

and

activities

operations.

Operating in the western half of
Mississippi, the company supplies
electric

service

ties,

which

419

communi¬

purchase

their;
requirements at wholesale

power

the

mainder

company
served

are

and

the

by the

re¬

com¬

pany at retail.

on a

For the four weeks ended March

7, 1953,

reported. For the period Jan. 1 to March 7,1953,
an

increase of 3%

bour,

was

year.

reported from

was

recorded.

For the

1953, volume declined 3% under that

the

period Jan. 1 to March 7,

of 1952.

observance

;this

year

Washington's

whereas last

year

ending Feb. 28 and
some

cities

store

Feb.

21,
closings in
Feb. 28

birthday occurred in the week ending
they occurred in the previous week.
—

Jesse
con¬

Gross, Rogers, Bar¬
&
Co., 559 South

Street.

Mr.

Lombardi

With Fewel & Co.

Chronicle)

ANGELES, Calif.

—

Wil¬

liam F. La Monte has

joined the
staff of Fewel &
Co., 453 South
Spring Street, members of the
Los Angeles Stock
Exchange. In
the

past Mr. La Monte

was

with

Hogle & Co.

Joins Waddell & Reed
(Special to The Financial

*In using year ago comparisons for the
weeks
allowance should be made for the fact that in

—

become

(Special to The Financial

7,1953,

Calif.

has

previously with
Marache,
Dofflemyre & Co. and First Cali¬
fornia Company.

LOS

In the pre¬
of

Smith

Figueroa

above 1952.

that

with

was

rise of 5% above the like 1952 period.

5%*

ANGELES,

Lombardi

nected

Easter buying, retail trade in New York the

decrease of

decrease of 2%

LOS
A.

future.

was

With Gross, Rogers Co.
j
(Special to The Financial
Chronicle)

1953, increased 2% from the like period of last
ceding week

oc*

•

An offering of $12,000,000 Mis¬
sissippi Power & Light Co. first

chary of extending their commitments

store sales in New York City for the
weekly period ended March 7,

and

~v.

Miss. Pw. & Lt. Bonds"

at the highest

According to the Federal Reserve Board's index department

of the week's

Bond, Stock, and Grain

Kuhn, Loeb Offers

year.

similar week of 1952, while for the four weeks ended March

.*I

near

past week showed

the week

$5,000, decreased to 20 from 28
the
corresponding week of 1952 when 32

*0^

sets, considered nationally, remained
a growing number of saturated mar¬
bedding, decorating materials, and

were

department store sales registered

comParable week

involved in 145

of the

division of the Chicago Heart As¬
sociation fund drive.' v.'
4
*
i

from

similar week of 1952.

preceding week, Dun & Bradstreet,

or more were

Athletic Association, and is Chair-?

incidental

Trading activity in many wholesale markets quickened slightly
as buyers made
hasty preparations for the new selling

increase of 6%

size group showed a slight decline from 152 in the
Previous week but exceeded
-those with liabilities under the 124 a year ago. Small casualties,
lower than

records.

country-wide basis, as taken from
the Federal Reserve Board's index, for the week ended March
7,
1953, increased 8% from the level of the preceding week. In the
previous week an increase of 9%* was reported from that of the

trucks

Moderately
declined to 165 in

£ u.res* Thlf

I purred.

for

year ago,

Stimulated by

PrGWar lGVel °f 298 in the

Liabilities of $5,000

were

beyond the

sales

Most buyers remained

(rethe 86,717

5, S remained above last year's total of 156,
but dipped v.' i
below the 185 which occurred
in 1951. They were
down

new

In the week

cars

2,702 trucks in the comparable 1952
week

STmTio1/nd \ndustrial failures
the

ended March 12 from 180
i

The total dollar volume of wholesale trade

2,387 trucks in the preceding

Business Failures
Drop
-

esti¬

year ago

Department store sales

cars

Georgetown University.; Mr.
Dwyer is a member of the Chicago

was

7,706

season.

f?r.the.

week and

hardware.

Past week was made up of 129,962 cars
fflnd 29,592 trucks built in
the United
States, against 120,900 cars
Md 27,927 trucks the
previous week and
86,717 cars and 25,549
trucks m the comparable 1952
week.
.■

year ago.

level attained at this time

turned out in the
year ago week.

ears

the demand

decrease

8.6% below the corresponding week in 1951.

I! aggregated 129,962

vised)

Shoppers boosted their buying of household goods the past
slightly more than in the similar 1952 week. While

car production in the United States last week rose
about 7% due to a greater supply of materials, states "Ward's Au-La

slightly above the level of

haberdashery.

tomotive Reports."

slightly in most parts of the nation in the
Wednesday of last week as shoppers became

rose

promotions of shoes evoked favorable

Passenger

1945.

Dwyer, Jr.

struction

Easter Approaches

week and spent

United States Auto
Output Advances About 7% Due to
Increased Supplies

Slightly

The total amount spent for apparel last week was
moderately
higher than in the similar 1952 week. In widest demand were
women's suits and coats, accessories and

freight for the week ended March 7, 1953,
according to the Association of American Rail-

corresponding week

week last year.

In most parts of the nation retailers
reported that the Easter
shopping season was well under way. Most merchants look for¬

Birthday holiday.
The

Force

graduate> of

the

higher than
Regional estimates varied from the correspond¬
by the following percentages: New Eng¬
land and Midwest +1 to +5; East 0 to
+4; Southwest +4 to +8;
Northwest 0 to +4; South and Pacific Coast
+3 to -f 7.
that of

roads, representing an increase of 16,211
cars, or 2.4% above the
preceding week when loadings were reduced
by the Washington's

] 3.9% below the

aware of the nearness of Easter. Attractive promo¬
instrumental in sustaining the total dollar volume of

were

ing levels of

revenue

totaled 685,016 cars,

•

John

previous, and the

The total dollar volume of retail trade in the week
mated by Dun & Bradstreet, Inc.) to be from 1 to 5%

was

his

the U.S.

Air

dise.

Loadings Rise 2.4% Above Week Ago

Loadings of

reported

Heavy snows
in parts of the Northwest hampered the sales of
Spring merchan¬

ward

Car

Vti

month

was

increasingly

34,920,000 kwh. below that of the preceding week when output totaled 8,172,952,000 kwh. It was
724,3837,000 kwh., or 9.8% above the total output for the week ended
March 15, 1952, and
1,234,768,000 kwh. in excess of the output
reported for the corresponding period two years ago.

same

Trade Volume Rises

Decline the Past Week

from

facilities.

The amount of electric energy distributed
by the electric light
and power industry for the week ended March
14, 1953, was estimated at 8,138,032,000
kwh., according to the Edison Electric In¬
stitute.

cotton

week

retail trade

for

Trading in the ten spot markets slackened somewhat. Sales
totaled 113,700 bales for the week, against
124,800 last week, and

The American Iron and Steel Institute announced that the
operating rate of steel companies having 93% of the steelmaking
f capacity for the entire
industry will be at an average of
for the

parity price

pound, down from 34.22
lowest level since September, 1951.

in extremely strong

Betts,
on

discharge

sale

mid-February

33.85 cents

capacity

rose

year ago.

The

relatively easier, it adds.

are

demand

slightly to 60,600 bales, from 59,100 and 53,200
preceding weeks. Aggregate loans for the season through
were 1,969,600
bales, against 920,100 to the corresponding

active

refiners.

in the two

Fast pace of the auto producers is keeping buoyancy in
the demand for hot-rolled and cold-rolled carbon sheets.
The outXook for open-end tonnage in these products in the second
quarter
fe narrowing.
■

prices reflected continued

sugar

steady to firm undertone as prices moved
a narrow range
last week. Support was influenced by short
covering, moderate mill price-fixing, and a steady flow of the
staple into the government loan. Reported entries during the week

magazine.

raw

sugar

On the basis of current demand for conversion steel, it has been estimated that automakers would have
to reduce their output 10 to 25% before there would be
any ap¬
preciable let-down in regular mill requirements, states this trade

cane

Cotton maintained

xemain in that position.

Firmer

from

The forms of finished steel that have been in
strong demand

joined

man

Warehouse

Dwyet

Borland

week last year.

79,008

with

Mr.

reported to Japan, Italy, Yugoslavia,
prices were fairly steady following early

Export flour business showed moderate improvement. Cocoa
continued to move higher in both the
spot and futures markets.

Xron & Steel Institute show the 8,938,000 net tons of steel for in-

ciated

& Co.

the Chicago Board of Trade totaled
50,000,000 bushels, com¬
pared with 44,000,000 a week previous, and 41,000,000 for the
same

was

asso¬

Betts, Borland

At the pace steel production is going there will be another new
monthly record this month. Figures just issued by the American

Dwyer

spotty although clear¬
ances for the week were reported at
1,726,000 bushels. Volume of
trading in grain futures broadened last week. Daily average sales

Because of the continued heavy demand for steel, the steel
industry produced steel for ingots and castings at the rate of 101%
of capacity in the week ended March 14. That matched the recordfereaking pace of the preceding week. That rate yields 2,277,000
net tons of steel for ingots and castings.

formerly

were

corn

firm

Security

Salesman. Mr.

The contemplated buying of corn
by the CCC at current
market prices to counteract its sales of off-grade corn had
little
effect on prices. Export trade in corn was

points out.

■

Cash

easiness.

auto produced, it

per

daily wholesale commodity price index, compiled by Dun

and Holland.

working, that the automobile industry will pay close to $215,600,000 in premiums for steel this year if present auto production
levels and the current availability of steel remain unchanged. The
premiums are those paid for warehouse steel and for conversion
The

their
a

Grain prices continued to fluctuate
irregularly. Weakness in
wheat was influenced by the receipt of moisture in the
dry sec¬
tions of the Southwest and in the
Spring wheat areas. Substantial

One gage of the strength of demand for steel is an estimate, on
the basis of a poll by "Steel," the weekly magazine of metal-

«rteel.

Dwyer,
Jr.,
has joined

& Bradstreet, Inc., moved in a very narrow
range last week. The
index closed at 281.23 on March 10, against 281.16
a week earlier,
and 302.21 on the like date a year ago.

index represents

Wholesale Commodity Price Level Shows
Irregular Trend

will have been dealt with.

McMahon t Hoban

the sum total of the price per pound
chief function is to show the
general trend of food prices at the wholesale level.

Steel leaders are determined that there shall be no wage increase

;

Dwyer With

CHICAGO, 111. — McMahon &
Hoban Inc., 105 South La Salle
Street, announces that John E.

of 31 foods in general use and its

Outlook for continuing high level demand strengthens expec'Ration of a selective steel price increase by summer—when the

Thursday, March 19, 1953

Join

month

ago, the Dun & Bradstreet wholesale food price index for March 10
remained unchanged at $6.28, the high point for this
year.
This
compares with $6.58 at this time a year ago, or a drop of 4.6%. The
1953 low was $6.13 recorded on Feb. 3.

There is no question
*fchat accelerating auto production schedules are pumping great
; iitrength into the steel market, asserts this trade authority.
i

...

TIFTON,
Ga.
Holmes, Sr. is now
&
Reed, Inc.

Marion
C,
with Waddell

—

Chronicle)

(1245)

Number 5204... Th e Commercial and Financial Chronicle

Volume 177

* INDICATES

Securities

Now in

(letter of notification) $200,000 of 6% 20-year
convertible debentures.
Price — $70 for each $100 of
27

sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered

principal amount.

Proceeds—To expand service. Under¬

for

Co., New York.

^Allied Chemical & Dye Corp. (4/1)
11
filed
$200,000 of 25-year debentures

March

•

due

Price — To be supplied by amendment.
Proceeds—For expansion program.
Underwriter—Mor¬
1978.

500

Shreveport, La. Underwriter—W. C. Doehler Co., Jersey
City, N. J.
Electronics,

common

Inc.,

Newark, N. J.

(letter of notification) 37,500 shares of class A
stock (par one cent). Price—45 cents per
Delbert

Proceeds—To

Replogle,

President.

share.

Under¬

(New York),
(St. Louis) and McCoy & Willard (Boston)

writers—None, but Gearhart & Otis, Inc.,
White & Co.

will act

brokers.

filed

March 2 filed 136,249 shares of common
Proceeds—Tt> repay bank loans and for

100,000 shares of cumulative

new construc¬
Underwriters
To be determined by competitive
bidding. Probable bidders: Blyth & Co., Inc.; Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane

tion.

stock, $1.50 series of 1952

(no par)

Jr.*,

Central City Milling

& Mining Corp. (3/25)

(letter of notification) 1,800,000 shares of com-*
stock. Price—At par (10 cents per share). Proceeds*

March 4

Hughes &

mining operations. Underwriter—R. L.

Co., Denver, Colo.
•

(4/1)

Central and South West Corp.

—

and Dean Witter & Co.

(jointly); Union Securities Corp.
and J. A. Hogle & Co. (jointly); Lehman Brothers. Bids
—To be received at 11:30 a.m. (EST) on March 31 at
Bankers Trust Co., 46 Wall St., New York 15, N. Y.
California

Electric Power Co.

(4/6)

March 9 filed $8,000,000 of first mortgage bonds due 1983.
Proceeds—To repay bank loans and for new construction.
Underwriters—To be determined by competitive
Probable bidders:
Halsey, Stuart & Co. Inc.;

bidding.
Salomon
Bros. & Hutzler; Merrill Lynch, Pierce, Fenner & Beane
and Dean Witter & Co. (jointly); Kidder, Peabody &
Co.; Blyth & Co., Inc.; Lehman Brothers. Bids—Tenta¬
tively scheduled to be received up to 11:30 a.m. (EST)
April 6.

Carpenter (L. E.) & Co.
(letter of notification) 1,200 shares of common
(par $1). Price — At market (about $4.62^ to
$4.87^ per share). Underwriter—Eisele & King, Libaire,

second pre¬

March 3

606,084 shares of common stock (par $5$
be offered for subscription by common stockholders*

March 6 filed
to

of record

(convertible

April 1 in ratio of one share for

each 14 shares*

held; rights will expire on April 20. Proceeds—To pin>chase addiitonal shares of common stock of its four prin-rcipal subsidiaries, who in turn will use the funds to pay
for property additions and improvements. Underwriterar
—To be determined by competitive bidding.
Probables
bidders:
The First Boston Corp. and Merrill Lynch,,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Lazard Freres & Co. (jointly); Blyth & Co., Inc., Smithy
Barney & Co. and Harriman Ripley & Co., Inc. (jointly)..
Bids
To be received up to 11 a.m. (CST) at 20 Na„
—

Wacker

Drive, Chicago 6, 111.

tUt*

Cleveland, Ohio

it Cleveland Airways, Inc.,

shares of commom
preferred stock (par $2G>
and $100,000 of 3% convertible notes. Price — For com¬
mon, $10 per share; for preferred, at par; and for notes^

March 11

(letter of notification) 3,700

(par $1), 7,500 shares of

stock

prior to June 15, 1962) to be offered for subscription by
officers and employees of company and its American
and Canadian subsidiaries under a "Restricted Stock Op¬
tion Plan for Employees." Price—Alternate provisions

Continued

4£

page

HEW ISSUE CALENDAR

price at 85% and 100%, respectively,
the options

fix the purchase

stock (par $1).

ISSUE!

it Celon Co., Madison, Wis.
(letter of notification) $157,100 of convertible
subordinated debentures due 1965.
Price—At par (in*
denominations of $100, $500 and $1,000 each). Proceeds—*
For working capital.
Office—2034 Pennsylvania Ave^,
Madison 4, Wis. Underwriter—None.

—For

(3/31)

REVISED

March 6

mon

Electric Power Co.

California

ITEMS

President.

stock

Ashland Oil & Refining Co.
27

•

fering—Now being offered.

Feb.

—Postponed.

•

^ Arcturus Electronics, Inc.
March 10 (letter of notification) $200,000 of 5-year 6%
convertible debentures due Apr. 1, 1958. Price—At 100%.
Proceeds—To pay chattel mortgage; to install machinery
and equipment in plant to be leased in Clifton, N. J.;
to repay bank loan; and for working capital.
Under¬
writers—Gearhart & Otis, Inc., New York; White & Co.,
St. Louis, Mo.; and McCoy & Willard, Boston, Mass. Of¬

ferred

the rate

Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser & McDowell, Chicago, 111. Offering

Pipeline Producers, Inc.
Jan. 5 (letter of notification) 599,000 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—To drill wells. Office—Room 308, Texas Eastern Bldg.,

Arcturus

stockholders

common

their rights.

American

March 4

Price—At par. Proceeds—To repay $1,014,outstanding notes and for drilling expenses and
working capital.
Underwriters — Dallas Rupe & Son.

Stanley & Co., New York.

gan

subscription

$100 of bonds for each 28 shares of stock held (for
14-day standby).
Certain stockholders have waived

Co., New York. Proceeds—To George Lucas,

Stout &

Oct. 22 filed $1,750,000 of 10-year 5%% convertible

writer—Tellier &

April

Registration

Byrd Oil Corp., Dallas, Tex.

Telephone Corp., Juneau, Alaska

Alaska
Feb.

ADDITIONS

SliNiCE
•

of the market value of the stock at the time

granted. Proceeds—For working capital and used

are

part for property
,

March 23,

additions and improvements. Under-

Ashtabula

Telephone Co.

Feb. 26 at rate of one new

held; rights expire on April 2. Price—At par ($25 per
share). Proceeds — For construction program. Office—
4616 Park Ave.,

Atlanta Gas

(Hemphill, Noyes & Co.)

March

of one new
rights

Pacific

(letter of notification) 4,600 shares of common

$3). Price—At market (approximately $7 per

Proceeds—To Helen I. Chapman, the selling
stockholder. Underwriter—Merrill Lynch, Pierce, Fenner

March
Central

(R.

it Baukol-Noonan, Inc., Noonan, N. D.
13 (letter of notification) 25,000 shares of comihon stock. Price—At market (from $2.50 to $3.50 per
share).

Proceeds—To Halvor Rolfsrud, the selling stock¬

holder.

Underwriter—None.

Proceeds—To retire $303,000
4%% convertible bonds and $74,250 of 4*/2% class A pre¬
ferred stock and 5% class B preferred stock and for
working capital. Underwriter—Dempsey-Tegeler & Co.,
St. Louis, Mo.

it Blair Holdings Corp., San Francisco, Calif.
March 13 (letter of notification) 11,846 shares of com¬
mon
stock (par $1).
Price—$8 per share. Proceeds—
To Elbert J. Evans, the selling stockholder.
Under¬
writer—Harris, Upham & Co., New York.
it Blue Sky Mining Co., Inc.
March 4 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds

Address—Box 191,
dAlene, Idaho. Underwriter—None.

purchase claims and property.

Ltd., Toronto, Canada

of common stock (par $1).

Price—Approximately 64.48 cents per share. Proceeds—
To acquire leases and for corporate purposes.
Under¬
writer—None. To be named by amendment.
March
trust

filed

loans.

Probable bidders: Halsey, Stuart & Co.; Harriman Ripley &
Co. Inc.; Coffin & Burr. Inc.; The First
Boston Corp.; White, Weld & Co. and Kidder. Peabody
& Co. (jointly); Estabrook & Co. and Stone & Webster
Securities Corp. (jointly). Bids—To be received up to
a.m.

(EST) on April 6 at 49 Federal St., Boston,

Mass.

(Bids

Common
Common
underwriting)

May 5, 1953

Alabama

Power

Common

Texas Power &

Kerr-McGee
(Lehman

1953

Common
EST)

Southeastern

Preferred!

1953

a.m.

EST)

23, 1953

Bond*

York Telephone Co
(Bids to

be invited)

Debentures
Blosser & McDowell)

Straus,

a.m.

Bonds

CST)

Preferred

States Telephone Co
(Central

June
New

Public Service Co. of Oklahoma
(Bids

EST)

MST)

Industries, Inc.

Brothers and

Bond*

a.m.

Bond*

Western RR.__Eq. Trust Ctfs.
noon

Co
(Bids

California Electric Power Co

(Bids

1953

June 9,
Gulf Power

Denver & Rio Grande

May 12,
Co

(Bids 11:30 a.m. EST)

Inc.)

a.m.

invited)

May 19, 1953
Light Co
Bonds &

Common

Co.

11:30

Debenture*
be

(Bids

& Co., Inc.

Blyth

(Bids

Preferred*

EST)

noon

Montana Power Co
(Bids

(McDonald & Co.)

31,

EST)

noon

April 21, 1953

Hilliard & Son)

March

EST)

Louisiana Power & Light Co

Common

(Blyth & Co.,

a.m.

Equip. Trust Ctfs*. y

(Bids

30, 1953

11:30

Texas-New Mexico Ry

Common

Electric Co

Scott & Fetzer Co.

Republic

Inc.)

Co.,

April 1, 1953

Debentures

Allied Chemical & Dye Corp.
Stanley

Co.)

Central & South West Corp
(Offer to stockholders—Bids 11 a.m. CST)

Equitable Insurance Co. (Puerto
(Borinquen

bidding.

Inc.)

27, 1953

(Morgan

$4,100,000 first mortgage and collateral
1983. Proceeds—To repay bank
Underwriters—To be determined by competitive
6

and L. D. Friedman & Co.,

Kentucky Utilities Co.

(4/6)

bonds due Feb. 1,

Common
(Bids

(Offering to stockholders—no underwriter)

and

EST)

April 15, 1953

Common

stockholders—underwritten

noon

Southern Co.

Merritt-Chapman & Scott Corp

Bond®

Service Inc

(Bids

(Smith, Barney & Co.)

(Offering

Bonds & Preferred!

April 14, 1953
Orleans Public

Bonds

North Pacific Exploration, Ltd

March

Lehman Brothers?

(Bids 11:30 a.m. EST)

New

(G. H. Walker & Co.)

(Offering to stockholders—no

& Co.)

Texas Electric Service Co

Class A

March

Sachs

Goldman,

Common

National Oil & Gas Corp.

(Aetna Securities Corp.

Common

stockholders—underwritten

stockholders—Barrett Herrick & Co., Inc.)

West Coast Telephone

Brockton Edison Co.

(Offering

Mountain States Tel. & Tel. Co

100% of principal amount.

Sept. 25 filed 1,000,000 shares

April 8, 1953
Jewel Tea Co., Inc

Co.)

White, Weld & Co.)

(Offer

Bond®

April 13, 1953

Common

(Offering to stockholders—underwritten

Bearings Co. of America, Lancaster, Pa.
March 9 filed $600,000 of first mortgage 5J/2%
con¬
vertible bonds due from 1954 to 1968, inclusive. Price—

Bristol Oils

Hughes

EST)

(Bids 11:30 a.m. CST)

1953

El Paso Natural Gas Co.

March

Coeur

25,

Bond*

noon

Kentucky Utilities Co.__

and

City Mining & Milling Corp

Southern Indiana Gas &

Beane, Davenport, Iowa.

—To

(Bids

Co., Inc.)

Independent Plow, Inc

Iowa

share).
&

Florida Power & Light

Price—$20.50 per share. Proceeds—
To repay bank loans issued in connection with com¬
pany's construction program. Underwriters—The First
Boston Corp., New York; and Courts & Co. and the
Robinson-Humphrey Co., Inc., both of Atlanta, Georgia.
Automatic Washer Co., Newton,

(Bids 11:30 a.m. EST)

Common

Corp.

Preferred

(Blyth

Bond®

California Electric Power Co

EST)

a.m.

Lighting Corp

expire March 25.

March 5

(Israel & Co.)

being offered to common stockholders at rate
share
for
each
10
shares held March
4;

stock (par

.Bonds & Preferred

Georgia Power Co
Great Western Uranium

Light Co.

Bonds
EST)

noon

(Bids

(par $10)

filed

(Bids 11 a.m. EST)

April 7, 1953

24, 1953

(Bids

BondSf

Brockton Edison Co.

Dallas Power & Light Co

Ashtabula, Ohio. Underwriter—None.

80,255 shares of common stock

Feb.

Common

Pittsburgh Coke & Chemical Co.

(Ohio)

(letter of notification) 10,000 shares of common

being offered to common stockholders of record
share for each three shares

stock

Common

(G. K. Shields <fe Co.)

writer—None.
Feb. 20

April 6, 1953

1953

Paley Manufacturing Corp.

Associates,

Thalhimer Brothers, Inc
iKidder, Peabody &
United

Common

Rico)_Com. & Pf«L
Inc.)

Common

Utilities, Inc.
(Offering to

stockholders—underwritten by

Kidder,

Peabody & Co.)

New York

Boston

Philadelphia

Co.)

Pittsburgh

San Francisco

Chicago

Cleveland
f

Private Wires to all

offices

The Commercial and Financial
Chronicle... Thursday, March 19,

(1246)

Continued

from

page

...

principal amount. Proceeds—For working capital. Ad¬
dress—c/o Thompson, Hine & Flory, National City Bank
Bldg., Cleveland 14, Ohio. Underwriter—None.

ic Colorado Central Power Co., Englewood, Colo.
March 9 (letter of notification) 14,834 shares of common
gtock (par $5) being offered for subscription by common
stockholders of record March 6.

Proceeds—For

Price—$17.50
Office

construction.

new

Broadway, Englewood, Colo.

share.

per

South

3470

—

(letter

notification) 1,500 shares of 5%%
sinking fund preferred stock, series A. Price
($100 per share). Proceeds—For working capi-

—At par

Underwriter—Wachob-Bender Corp., Omaha, Neb.

ic Concord Fund, Inc., Boston, Mass.
March
At

filed

market.

Proceeds—For

investment.

Underwriter—Southern

Price—

stock.

Underwriters—

None.

stock.
Price—At par
($10 per share).
Proceeds—For
general corporate purposes. Office — 221 Vz West Trade
St., Charlotte, N. C. Underwriter—None.

Cooperative Grange League
Exchange, Inc.
13 filed

50,000 shares of 4%

cumulative

preferred

(par $10C) and 700,000 shares of common stock
(par $5). Price—At par. Proceeds—For working capital.
Business—Production of dairy and poultry feeds. Office
—Ithaca, N. Y.

Underwriter—None.

Coronado Copper Mines Corp.
Jan. 23 (letter of notification) 299,970 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
To acquire leases, for exploration
expenses, to repay
and

for

working

capital.
Office—100 West 10th
Underwriter—Charles J. Maggio,

St., Wilmington, Del.
Inc., New York.
Dallas
Feb.

Power

filed

Light Co.

$9,000,000

March

(3/24)

first

mortgage

bonds

due

1, 1983.
Proceeds
For construction program.
Underwriters—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon
Bros.
& Hutzler;
The Frist Boston Corp.; Lehman
Brothers; Kidder, Peabody & Co.; Equitable Securities
Corp.; Union Securities Corp.; Harriman Ripley & Co.,
—

Inc. Bids—To be received
up to noon (EST) on March
24 at Room 2033, Two Rector
St., New York 6, N. Y.

ic de Vegh Income Fund, Inc., New York
March 16 filed 200,000 shares of
capital stock. Price—At
market. Proceeds—For investment.
Underwriter—None.

★ Durant Fund, Detroit, Mich.

First
Jan. 21

Eastern Life Insurance Co. of New
York
5 (letter of
notification) 1,500 shares

March

(par

$5.50).

Price—$12

per

share.

capital

Proceeds—To

Judea Industrial

Corp., New York. Underwriter—None,
but Franklin & Co., New
York, will act as broker.
Eastern Tractor

Manufacturing Corp.,

Kingston, N. Y.
Feb.

(letter of notification) 748,000 shares of com¬
mon stock
(par five cents). Price—40 cents
per share.
Proceeds—For working capital.
Underwriter—Hunter
Securities Corp., New York.
t

• El Paso Natural Gas Co. (3/25-26)
"March 6 filed 960,000 shares of
common stock
(par $3),
of which
approximately 880,000 are to be offered for
subscriptions by holders of common stock and $4.25 con¬
vertible

second

at rate of

one

preferred

stock

share of

new

shares held and

mon

one

held;

new

rights

record

share of

March

for each four

common

for each

common

expire

com¬

April

The

remaining 80,000 shares are to be reserved for
offering
to employees.
Price—To be supplied
by amendment.
Proceeds—To
tion.

repay

bank

Underwriter—White,

loans

and

for

March 11 (letter of

ible

new

construc¬

Weld & Co., New York.

^ Electralab, Inc.,
Cambridge, Mass.
stock

notification) 20,000

units

one

debentures.

general

corporate

stock

Price—$1.15
purposes.

Sheeline & Co.,
Boston, Mass.

common

and

per

unit.

of¬

principal

Proceeds—

Underwriter—Paul

English Oil Co., Salt Lake
City, Utah
shares of common stock, of which
750,000 shares are to be offered
publicly, 250,000 shares
are to be
reserved for officers and
key employees and
options, and 2.435,583 shares in
exchange for oil and gas
properties and interests therein.
Price—At par ($1 per
share)
Proceeds—For acquisition1 of

£r?kLfil,ed 3'435'583

additional proper¬

ties

and leases.
Underwriter—J. A Hoele
Lake City, Utah.
Offering-No date set

Salt

Equitable Insurance
Co., Puerto Rico (4/1)
24 (letter of
notification) 50,000 shares of common

Feb

stock

class A

offered

$1.99

cumulative

per

share;

participating

100,000

preferred stock

share; 100,000 shares of class B
6% cumulative
lcipating Preferred stock at $1
per share; and
50,000 purchase warrants or
tional share of either
at

one

cent) which includes 22,190 shares being

cent

Address—P.

per

options

to buy one addi¬
preferred class A stock
Proceeds
For investment.

common or

warrant.

O. Box

—

4726, San Juan, Puerto Rico. Under¬
writer—Borinquen Associates, Inc., San Juan.

—

First

Securities

Corp.,

Philadelphia, Pa.
First

Springfield Corp., Springfield, Mass.

Feb. 9 filed 20,000 shares of
Pribe—At market. Proceeds

capital

—

stock

(par

For investment.

writer—D. J. St. Germain &
Co.,

$10).

Under¬

Springfield, Mass.

each five shares held.

Price—To be

Proceeds—For construction program.
—None.

Underwriter

Florida Power & Light Co. (4/7)
March 2 filed $15,000,000 of first

mortgage bonds due
Proceeds—To repay bank loans and for new con¬
Underwriters
To be determined by com¬

1983.

—

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; Harriman Ripley & Co.,
Inc.;
Lehman Brothers; The First Boston
Corp.; Merrill Lynch,
Pierce, Fenner & Beane; White, Weld & Co. Bids—Ten¬
tatively scheduled to be received up to noon (EST) on
April 7 at Two Rector St., New York, N. Y.
* General Telephone Co. of the Southwest
March

filed

50,000 shares of 5 lk %

pre¬

Price—At par ($20 per share). Proceeds—
property additions. Underwriter
None, but Mitchum, Tully & Co., Los Angeles, Calif., will act as dealer-

derwriter—None.

•

ic Hercules Steel Products Corp., Galion, Ohio
March 5 (letter of notification)
2,000 shares of common
stock (par 10 cents). Price—$5
per share.
Proceeds—To:
Mr.

E. A. Walsh

and

Mrs. E.

Walsh.

Underwriter—

Alstyne, Noel & Co., New York.

Hilo

Electric

March 2 filed 25,000 shares of
offered

rate of

one

Light Co., Hilo, Hawaii
stock

common

stockholders

common

be first

March

record

share for each three shares held; then to

new

employees; any unsubscribed shares to be offered to
public.
Price—At par ($20 per share).
Proceeds—Td
repay bank loans. Underwriter—None.
ic Holly Corp., Springfield, Mass.
11
(letter of notification) 24,000 shares of

March

com¬

stock.

Price—At market (approximately 40 cents
Proceeds—To R. T. Lynch and W. T. Lynch,
the two selling stockholders. Underwriter—E. L.
Aaron.

share).

per

Co., New York.

Independent Plow, Inc., Noedesha, Kan. (3/25)
Feb._26 filed 100,000 shares of participating convertible^
class A stock (par $5), to be offered for
subscription;
by common and preferred stockholders at rate of one,
share of class A stock for each 314

and/or

stock

common

Proceeds—To

held.

Price

balance

shares of preferred

$6.50

—

share.'

per

RFC

loan
($192,311);.
outstanding preferred stock ($86,341); and.
for ^working capital. Underwriter—Barrett Herrick &
to

repay

redeem

Co.,Jtnc., New York.
Inspiration Lead Co., Inc., Wallace, Ida.
(letter of notification) 2,000,000 shares of

Jan.^26

stock.

mining

Price—15

cents

Office—507

expenses.

Underwriter—Mine

share.

per

Bank

com¬

Proceeds—For

St.,

Wallace,

Ida.

Financing, Inc., Wallace, Ida.

filed

common

(3/24)

$16,000,000 of

first mortgage bonds due
Proceeds—For construction program. Un¬
derwriters—To be determined by competitive

April 1, 1983.
Probable

bidders:

Halsey,

Stuart

bidding.
Inc.; Lehman
Co., Inc. and

Co.

Brothers; Kuhn, Loeb & Co.; Blyth &
Kidder, Peabody & Co. (jointly); The First Boston
Corp.;
Securities

Corp.

and

Equitable

Securities

Inc.

Bids—To be received up to 11 a.m.
(EST) on March
24 at office of Southern
Services, Inc., 20 Pine St., New
York 5, N. Y.

Georgia Power Co

(3/24)
100,000 shares of cumulative preferred
(no par). Proceeds — For construction
program.
Underwriters—To be determined by
competitive bidding.
Probable bidders: Blyth &
Co., Inc.; Lehman Brothers;
Morgan Stanley & Co.; The First Boston
Corp.; Union
Securities Corp. and Equitable Securities
Corp. (jointly).
20

Bids—To be received up to 11
at office of Southern

a.m.

(EST)

March 24

Services, Inc., 20 Pine St., New

York 5, N. Y.

* Golden Crown Mining Co.,
Prescott, Ariz.
(letter of notification) 23,625 shares of
capital
stock (par 50
cents). Price—$1 per share. Proceeds—To
March 9

debt.

Office

—

Union

Block

Bldg.,

Underwriter—None.

Prescott,

Ariz.

Grand Bahama
Co., Ltd., Nassau
Feb. 3 filed $1,350,000
20-year 6% first mortgage conver¬
tible debentures due
March, 1973, and 1,565,000 shares
of class A stock
(par 10 cents). Price—Par for deben¬
tures and $1 per share for stock.
Proceeds
For new
construction. Business
Hotel and land
—

—

development.

Otis, Inc., New York.

equipment.

mon
stock (par $100).
Price—At
working capital. Office—138 West
Girard, Pa. Underwriter—None.

par.

Proceeds—For

Railroad

St.,

North

Uranium Corp. (3/24)
(letter of notification) 300,000 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—For
acquisitions and working capital.
Office — U. S. Bank

Bldg., Grand Junction, Colo.
New York.

Underwriter—Israel & Co.,

* Great Western Yearbooks, Inc.,
Glendale, Calif.
March 10 (letter of
notification) 10,000 shares of common
stock. Price—At par ($10
per
erate business.

share).

Proceeds—To

op¬

Office—110 West
Broadway, Glendale 4,

Underwriter—None.

Guardian Chemical
Corp., Long Island City, N. Y.
(letter of notification) 36,325 shares of com¬

Mar*$i 3

stock

(par 10 cents). Price—$2.75 per share. Pro¬
ceeds—For working capital.
Underwriter—Batkin &
New York.

Co.,

29 filed

($100

par

49,500 shares 'Of

(Israel

Industrial

Mineral

Development

Oct. 6 /filed 30,000 shares of class A stock.

crude

Corp.;

Price—At par

($100;3)er share). Proceeds—For industrial and mineral
development of Israel. Underwriter
Israel Securities
—

Corp*.New York.

Israel Overseas

Fe^.;47

Corp. of New York

filed 16,000 shares of capital stock

par

and

$3,^00^)00 of 20-year debentures to be offered in units
of height shares of stock and $1,700 principal amount of
debentures.
eral
J.

Price—$2,500

corporate

unit.

per

Proceeds—For gen¬

Underwriter—None.

purposes.

!''

Jefferson Lake Sulphur Co.,

New Orleans, La.
1,700 shares of common

March);2 (letter of notification)
(par $1). Price—At market (approx. $21.37V2 per
share),/; Proceeds—To F. Lloyd Monroe, the selling stockholderj Underwriter — None, but James E. Bennett Sc
Co., Chicago and New York, will act as agent.
stock

ic Jersev Central Power & Light Co.
March

1983.

filed

$8,500,000

first

proceeds—For construction

mortgage

bonds

due

program. Underwriters

determined

by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; White, Weld & Co.
(jointly); Equitable Securities Corp.;
The First Boston Corp.; Salomon Bros. &
Hutzler; Glore,
Forgan & Co.; Kidder, Peabody & Co.; Harriman Ripley
& Conine.
Bids—Expected early in April.
bidders:
and

Shields & Co.

(4/8)

Marcel7
to

filed 141,757 shares of common stock (par $1)
^offered for subscription by common stockholders

of record

April 8 at rate of

one

new

share for each eight

shared/held;

rights to expire April 23. Price—To be sup¬
plied by amendment. Proceeds—For working capital, etc.
Underwriters—Lehman Brothers and Goldman, Sachs &
Co., both of New York.

ic Johnston Mutual Fund, Inc., N. Y.

Marcll|17 filed
At

market.

50,000 shares of capital stock.

Proceeds—For

investment.

Price—

Underwriter—

None.fv
ic Junction City

(Kan.)

Telephone Co.
notification) $206,000 of 414% first
mortgage bonds, series A, due Feb. 1, 1977. Price—100%
March/3
and

(letter

Proceeds—For general corporate
interest.
Underwriter—Wachob-Bender Corp., Omaha,

accrued

purposes.

Feb.

Price—At

crbdefuil for Israeli ^enterprises and to purchase

22, 1952, on a pro rata basis; rights to ex¬
28, 1953. The offering will include 50,000
shares to
directors, officers and employees of the com¬
on

stock.

products for resale in Israel. Underwriter—
Israel Securities Corp., New York.

Nebraska.

of record Dec.

common

share). Proceeds—To finance purchase of

per

oil and oil

Gyrodyne Co. of America, Inc.
13 filed 350,000 shares of
class A common stock
(par $1), to be offered for
subscription by stockholders

Nov.

new

Underwriter—None.

ic Jewel Tea Co., Inc.

Great Western

Feb. 12

common

share). Proceeds—For

Ispetrol Corp., New York
Oct.

—To'-foe

Growers, Inc. (Pa.)
(letter of notification) 814 shares of 6% cumu¬
lative preferred stock
(par $50) and 295 shares of com¬
March 2

(O.) Publishing Co., Inc.
(letter of notification) 2,000 shares of

stock. Price—At par ($50 per

filed

stock

Calif.

f--

ic Ironton
March

Corp.

(jointly); Shields & Co. and Salomon Bros. & Hutzler
(jointly); Morgan Stanley & Co.; Harriman Ripley & Co.

Feb.

ic International Glass Fibres Corp., Baltimore, Md.
(letter of notification) 61,960 shares of class A
stock (par $1).
Price—$1.371/2 per share. Pro¬
ceeds—For working capital.
Office—10 Light St., Balti¬
more, Md. Underwriter—None.
March 6

Georgia Power Co.
Feb.

pire

payment

—

manager.

mon

None.

mons

cumulative

ferred stock.
For

pay

firms

and

supplied by amend¬

ment.

struction.

individuals

—

ic Hawkeye-Security Insurance Co., Des Moines, la._
March 5 (letter of
notification) $30,000 of participating "
interest to be offered to those eligible to
participate in
the company's Profit-Sharing and Retirement Plan. Un¬

mon

March 6 filed 23,698 shares of
capital stock (par $25) to
be offered to stockholders at rate of one new
share for

certain

Price
$5.75 per share. Proceeds — For
engineering and construction of prototype coaxial heli-»
copter. Office—St. James, L. I., N. Y.
Underwriter—

common

Great Lakes

shares of

(par 10 cents) and $20,000 of
10-year 6% convert¬

amount of

•

(par

Underwriter—Gearhart

debentures, series B, due March 15,
1963, to be
in

fered
For

Corp., Philadelphia, Pa.
(letter of notification) 600,000 shares of

pany and to
for services.

Van

Securities

reoffered to the previous purchasers. Price—25 cents
per
share. Proceeds — For expansion of business and for

Union

Marsh 12 filed 100,000 shares of beneficial
interest in the
Fund (par $1).
Price—At market. Proceeds—For in¬
vestment. Underwriter—None.

stock

Boston, Mass.

Fitchburg Gas & Electric Light Co.

Federation

stock

loans

Inc.,

March 12 filed 700,000 shares of capital stock. Price—At
Proceeds—For investment. Underwriter—None.

working capital. Underwriter

ic Consolidated Credit Corp., Charlotte, N. C.
(letter of notification) 5,000 shares of class B

Co., Inc., Charlotte,

market.

March 9

Feb.

Investment

Carolina.

stock

shares of capital

200,000

Co., Inc., Hickory, N. C.
Feb. 16 (letter of notification) 36,998 shares of common
stock.
Price—$7.50 per share. Proceeds—For working
capital.
Office—347 First Ave., N. W., Hickory, N. C.

ic Fidelity Fund,

cumulative

taL

F. & F. Finance

North

Underwriter—None.

Community Credit Co., Omaha, Neb.
Jan.

ic Evergreen Sanitarium & Lodge, Inc.,
Denver, Colo.
-y,
6 (letter of notification) 500 shares of preferred
stock.
Price—At par ($100 per share).
Proceeds—For
property and equipment. Underwriter—None.
March

1953

•

Kentucky Utilities Co.

(3/30)

March* 9 filed 208,057 shares of common stock
be

offered

for

subscription by

of record March 20 at the rate of

held; rights to expire

common

one

new

(par $10)

stockholders

share for each

April 13. Price—To

Number 5204

Volume 177

supplied by amendment. Proceeds—For new construc¬
Underwriters—Blyth & Co., Inc., New York;-, J. J.

tion.

Hilliard & Son,

B.
•

The Commercial and Financial Chronicle

...

Kentucky Utilities Co. (4/7)
first mortgage bonds, series E.
April 1, 1983. Proceeds—To repay bank loans and

due

for

determined

Underwriters—To be

construction.

new

by competitive bidding. Probable bidders: Halsey; Stuart
{& Co. Inc.;

The First Boston Corp. and Lehman Brothers

.(jointly); Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Union Securities Corp. and Merrill Lynch,
:Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.;
-

Bids—To be received up to
April 7 at 20 No. Wacker Drive,

Equitable Securities Corp.
11:30

(CsT)

a.m.

(outstanding Feb. 28, 1953), to repay $135,000 bank loans
working capital. Underwriter—G. H. Walker &

and for

Co., New York and Providence (R. I.)

Louisville, Ky.

March 9 filed 310,000,000
•

(1247)

Chicago 6, 111.

Natural Gas & Oil
March
mon

stock

For

Corp., St. Louis, Mo.
20,000 shares of com¬
Price—$13.75 per share. Proceeds

(letter of notification)

(par $5).

Underwriter —
Scherck, Richter Co., St. Louis, Mo., for 15,000 shares.

—

corporate

general

purposes.

New

England Power Co.
80,140 shares of $4.60 cumulative preferred
(par $100) being offered for subscription by hold¬
ers of 6% preferred stock of record March 3, on a share
for share basis; rights to expire March 23.
Price—$100
per share. Proceeds—For repayment of bank loans. Un¬
derwriters—Lehman Brothers, New York.

Feb. 4 filed
stock

* Pioneer Telephone Co., Waconia, Minn.
10 (letter of notification) 3,000 shares of 5V2%
cumulative preferred stock, series C. Price—At par ($100
March

share).

per

Proceeds—For additions and improvements.

Underwriter—M. H. Bishop & Co., Minneapolis, Minn.
•

Pittsburgh Coke & Chemical Co. (3/23-24)
3 filed 84,903 shares of common stock (no parf>
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes.
Underwriter — Hemphill,
Noyes & Co., New York.
March

•

Public Service Co. of Oklahoma

March

filed

$6,000,000

first

(3/31)
bonds

mortgage

due

Proceeds—For property additions and
improvements. Underwriters—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &
1983.

Co.
•

Kerr-McGee

March

Industries, Inc. (3/31-4/1)
$10,000,000 of 4%% convertible

filed

^
lMij)or-

dinated debentures due April 1, 1968. Price—To be'sup■

plied
and

general corporate

Proceeds—For

amendment.

Underwriters—Lehman Brothers,

purposes.

New

York;

Straus, Blosser & McDowell, Chicago, 111'.

Lake Superior District Power Co.
Feb. 16 filed 29,761 shares of common

stock

(par $20)

^ New Orleans Public Service Inc. (4/14)
12 filed $6,000,000 of first mortgage bonds due
1983. Proceeds—For construction program. Underwriters
—To be determined by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers;
Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); Equitable Securities Corp.; Union Secu¬
rities Corp.
Bids—Tentatively scheduled to be received
up to noon (EST) on April 14.
\''V
March

being offered for subscription by common stockholders
of record Feb. 25

nine shares

$31

the basis of

one

new

share for each

held; rights to expire on March 23. Price—

share.

per

Proceeds

—

For

Baird

Underwriter—Robert

construction program.
Co., Inc., Milwaukee,

; Wis.
^ Lenoir Finance Co., Lenoir, N. C.
March 18 (letter 6f notification) $150,000 of 6% consubordinated debentures and 4,000 shares of

.vertible

stock

common

(par

principal amount

Price—At

$10).

(in denominations of $25 each) for debentures; an^ $20
.per share for stock.
Proceeds — For working capital.
Underwriter—McCarley & Co., Inc., Asheville, N. C.

Mathieson Chemical

Corp., Baltimore, Md.

shares of common stock (fj&r $5)
to be offered under the company's "Restricted Stock Op¬
tion Plan to Certain Officers and Other Key Employees"

March 6

filed 350,000

of the company

and its subsidiaries. Proceeds—For gen¬
Underwriter—None.
1
:"

eral corporate purposes.

McCarthy
June

cents).

(Glenn), Inc.
shares of common stock (par 25
Price—$2 per share. Proceeds—For drilling of
filed 10,000,000

exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,

Houston, Tex. Dealer Relations Representative—George
A.

SearigHt, 50 Broadway, New York, N. Y.

Telephone

WHitehall 3-2181. Offering—Date indefinite.

★ North Central Texas Oil Co., Inc.
March 5 (letter of notification) 3,000 shares of common
stock (par $5).
Price—$22.50 per share. Proceeds—To
Arthur R. Carmody, the selling stockholder. Underwriter
—H. N. Whitney, Goadby & Co., New York. No general
public offer planned.
North Pacific

Exploration, Ltd. (Canada) (3/25)
capital stock (par 25 centsCanadian).; Price—$1 per share (U. S. funds). Proceeds
—For exploration costs. Underwriters—Aetna Securities
Corp. and L. D. Friedman & Co., Inc., both of New York.
Feb. 4 filed 1,375,000 shares of

Northland Oils Ltd., Canada
Nov. 21 filed 1,000,000 shares of capital

stock (par 20
cents—Canadian) and subscription warrants for 600,000
shares, of which the stock and subscription warrants for
400,000 shares are to be offered in units of 100 shares
of stock and subscription warrants for 40 shares. Price—
$52 per unit. Proceeds—For drilling of additional wells
md to purchase producing wells.
Underwriter—M. S.
Gerber, Inc., New York. Financing may be revised.

Nyal Co., Detroit, Mich.
(letter of notification) 200,000 shares of common

Otis, Inc., New York.

Overland Oil, Inc., Denver,
Dec. 23 filed 300,000 shares of

—To

capital

and general corporate

Underwriter—

purposes.

None.

ic Metal Hydrides, Inc., Beverly, Mass.
?
March 9 (letter of notification) 15,981 shares of common
stock
(par $5).
Price—$14 per share.
Proceeds—For
working capital.
Office—12-24 Congress St., Beverly,
Mass.

Underwriter—None.

Mex-American Minerals Corp., Granite

City,'III.
Nov. 3 filed 113,000 shares of 6% cumulative preferred

stock (par $5)
10

cents)

and 113,000 shares of

offered

units

common

stock (par

sh^re ofJeach
per unit. Proceeds—For work¬
ing capital. Business—Purchase, prpcessing, refinirig and
sale of Fluorspar. Underwriter — To be supplied by

class of stock.

one

Price—$6

amendment.

Refining Co.
(letter of notification) 400,000 shares of common
(par five cents). Price—60 cents per share. Pro-

'stock

acquire additional properties. Office—927-929
Market St., Wilmington, Del. Underwriter—W. C. Doebler Co., Jersey City, N. J.
,
.
J
.

Monitor
Feb. 24
mon

(par

Proceeds—For

1,000,000 shares of/com¬
cents per share.:

Price—25

cents).

capital. Office—55 Liberty JSt.,
Y. Underwriters—d'Avigdor Co.,-find
L. H. Rothchild & Co., both of New York.

New

York

working

! A Mountain States Tel. & Tel. Co.
March 6

;

(3/27)

filed 390,931 shares of common stock to

fered for subscription by
March 27 at rate of

one

bejpi-

common stockholders of record
share for each four shares

new

jheld; rights to expire April 29. American Telephone &
.Telegraph Co.
(parent)
now
owns
1,351,203
shares
.(86.41%) of presently outstanding capital stock. Priefc—
At par

($100

per

share). Proceeds—For property -addi¬

tions and improvements. Underwriter—None.

V; ,.f| *

ir National Blank Book Co., Holyoke, Mass.
? |
(letter of notification) 2,059 shares of common
.stock
(par $25).
Price—$27 per share.
Proceeds-^To
R. P. Towne and Day Trust Co., trustees under thfe will
.

March 5

of F. B.
.

common stock (par 10
share. Proceeds—To make

Corp. (3/24)
March 2 filed 200,000 shares of cumulative preferred
stock (no par).
Price—To be supplied by amendment.
Proceeds—To repay bank loans and for new construction.
Underwriter — Blyth & Co^ Inc., New York and San
Pacific Lighting

Underwriter—Lee Higginson Corp.

Towne.

Estabrook & Co.,

both of Boston, Mass.

4hd
$

it National Marine Terminal, Inc., San Diego,; Calif.
10 (letter of notification) 30,000 shares pf 6%
-preferred stock. Price—At par ($10 per share). Proceeds
March

Inc., Los Angeles, Calif.
notification) 8,802 shares of preferred
stock (par $10) and 8,700 shares of common stock (par
5 cents).
Price—For preferred, $7 per share, and for
common, 30 cents per share. Proceeds—To Fred Meyers,
Charles Flake
and
Joseph Solomon.
Underwriters—
White & Co., St. Louis, Mo.; Gearhart & Otis, Inc., New
York, and Peters, Writer & Christensen, Inc., Denver,
Pacific Western Stores,

March 2 (letter of

Colo.

New York

of common stock (par $25).

share. Proceeds — For development of
Israel industry, etc., and for working capital.
Under¬
Price—$28

per

Paley Manufacturing Corp. (3/23)
(letter of notification) 99,000 shares of common

Jan. 16

(par 25 cents). Price—$3 per share. Proceeds—
expansion and working capital. Office—Brooklyn,
N. Y. Underwriter—G. K. Shields & Co., New York.

stock

March

1973.

Proceeds—To

bonds due
supplied by amendment.
$1,349,000 of 4^2%
debentures

Price—To

redeem

Box

Providence 1,
' V

1325,

Underwriter *

★ Rittenhouse Fund, Philadelphia, Pa.
Marsh 12 filed 100,000 units of participating
in

Price—At

Fund.

the

market.

interests

Proceeds—For invest¬

Underwriter—None.

ment.

Rocky Mountain Oil Corp., Denver, Colo.
March 4 (letter of notification) 237,500 shares of common
stock

(par 10 cents). Price—$1 per share. Proceeds—For

working capital. Underwriter—Steele & Co., New York.

★ Rowe

(T.)

Price Growth Stock Fund, Inc.
of capital stock. Price:—At

16 filed 50,000 shares

Underwriter—None.

Proceeds—For investment.

Scott & Fetzer Co., Cleveland,
10 filed

Price—To

Ohio

(3/30)

64,000 shares of common stock (par $5).
supplied by amendment. Proceeds—To

five selling stockholders.

Underwriter—McDonald & Co.,

Cleveland, O.
•

SeaPak Corp., St.

Simons Island, Ga.

(letter of notification) $8,933 shares of common

(par $1) being offered for subscription by stock¬
holders of record March 3 at rate of one new share for
stock

each

6.4

Price—$5.25

held;

share.

per

rights exoire on March 20.
Proceeds—For new equipment.

Underwriter—None.

ic Security Oil Co., Denver, Colo.
of notification) $250,000 of series A 1953,
five-year 10% debenture bonds. Price—At par (in de¬
nominations of $25 and multiples thereof). Proceeds—To
drill
wells.
Otfice—501
Empire Bldg., Denver, Colo.
Underwriter—Underwriters, Inc., Denver, Colo.'
March 5 (letter

Seiberling Rubber Co., Barberton, Ohio
19 (letter of notification) 15,420 shares of common

Feb.

(par $1) to be offered in exchange for 7,710 shares^
stock
of
Seiberling
Rubber
Co., Ltd.

common

(Canada) on the basis of two shares of the
for

each

will expire on

the

March 23.

Canadian

company.

Ohio firm
The offer

Underwriter—None.

Shirks

Motor Express Corp.

(Del.)

(letter of notification) 20,000 shares of 6% cumu¬
lative preferred stock
Price—At" par ($10 per share).
Proceeds—For working capital. Office—Manheim Pike,
Jan. 8

Lancaster, Pa.

Underwriter—Alex. Brown & Sons, Bal¬

timore, Md.

Paradise

Valley Oil Co., Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
on subleased land and for other corporate purposes. Un¬
derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share). Of¬
fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.
139
•

N. Virginia

St., Reno, Nev.

Co., Tampa, Fla.
shares of common stock

Peninsular Telephone

(no par)
being offered for subscription by common stockholders
at rate of one new share for each five shares held as of
March 18; rights to expire April 1. Certain officers and
employees will be entitled to purchase unsubscribed
shares. Price—$40 per share. Proceeds—For construction
program. Underwriter — Morgan Stanley & Co. and
Coggeshall & Hicks, both of New York.
Peruvian Oil Concessions Co., Inc., Dover, Del.
Jan. 16 filed 9,000,000 shares of common stock (par $1).
Price—$1.10 per share. Proceeds—For general corporate
purposes. Business—Plans to produce and sell petroleum
and its products from lands to be held under concession
Feb.

filed

73,241

Peruvian Government.

Underwriter—None.

Phillips Packing Co., Inc.
Feb. 2 (letter of notification)- 3,000 shares of common
stock (no par).
Price—At market (approximately $6
per share).
Proceeds—To Theodore Phillips, the selling
stockholder. Underwriter—Alex. Brown & Sons, Balti¬

National Oil & Gas Corp. (3/25-26)
5
filed
$1,650,000 first mortgage

—

writer—None.

from the

March

Address
—None.

stock

Palestine Economic Corp.,

Bank

Office—U. S. National
Bldg., San Diego 1, Calif. Underwriter—Wahler,
White & Co., Kansas City, Mo., and others.

it Rhode Island Development Co., Providence, R. I.
March 6 (letter of notification) 30,000 shares of capital
stock (par $1). Price—$10 per share. Proceeds—To pro¬
mote and develop business and industry in Rhode Island.

Francisco.

—For general corporate purposes.
-•

Underwriter

—None.

Feb. 25

For

Mines, Inc., New York

(letter of notification)

stock

cents per

geological survey of land. Business—Oil and gas explor¬

ceeds—To
.

Price—20

March 6 filed 100,000 shares

Mid-Gulf Oil
Nov. 10

■

242, International Airport, Miami 48, Fla.

March

Colo.

ation. Underwriter—None.

a^ raie of one new share for

stock

March

holders of record March 27

held; rights to expire on April 14, Price
be supplied by amendment. Proceeds—For working

it Resort Airlines, Inc., Miami, Fia.
of notification) 724,687 shares of common
(par 10 cents) to be offered for subscription by
stockholders on a pro rata basis.
Price—20 cents per
share.
Proceeds—For working capital.
Address—Box

March 6 (letter

market.

Gearhart &

March 31 at 20 N. Wacker Drive, Chicago 6,

stock (par 10 cents). Price—$1.25 per share. Proceeds—
To repay loans and for working capital. Underwriter—

cents).

each five shares

(CST)
111.

Dec. 28

Merritt-Chapman & Scott Corp. (3/27)
3
filed
121,322 shares of common stock" (par
$12.50) to be offered for subscription by common stock¬
March

Inc.; Salomon Bros. & Hutzler; White, Welt & Co. and
(jointly); Glore, Forgan°& Co.; Harriman
Ripley & Co. Inc.; The First Boston Corp.; Kuhn, Loeb
& Co. and Union Securities Corp. (jointly); Blyth & Co.,
Inc., Kidder, Peabody & Co. and Stone & Webster Secu¬
rities Corp. (jointly). Bids—To be received up to 11 a.m.
Shields & Co.

more,

Md.

+ Silver Creek Precision Corp.
notification) 18,000 shares of common
stock (par 40 cents). Price—At market (approximately
$1 per share). Proceeds — To Sembodja Corp. of New
York, 50 Broadway, New York 4, N. Y. Office—Chau¬
tauqua County, N, Y. Underwriter—None.
March 13 (letter of

^ Southeastern States Telephone Co. (3/31)
16 filed 60,000 shares of cumulative preferred

March
stock

(par $25).

Price—To be supplied by amendment.

Proceeds—For construction program.

Underwriter—Cen¬

Republic Co. (Inc.), Chicago, 111.

tral

* Southern Co. (4/15)
March 13 filed 1,004,869 shares of common

stock (par $5)

stockholders of record April 16
new share for each 17 shares held

to be offered to common
on

the

basis of

one

oversubscription privilege); rights to expire on
May 7.
Price—Expected to be named by the company
on April 13.
Proceeds—To increase investments in sub¬
sidiaries. Underwriters—To be determined by competi¬
tive bidding. Probable bidders: Blyth & Co., Inp.; Equit¬
able
Securities
Corp.
and
Union
Securities Corp.
(with

Boston Corp.; Lehman Brothers;
Kidder, Peabody & Co. and Mer¬
rill Lynch, Pierce, Fenner & Bcane (jointly). Bids—Ten¬
tatively expected to be received at 11:30 a.m. (EST) on
April 15 at 20 Pine St., New York 5, N. Y.
(jointly);

The

First

Morgan Stanley & Co.;

Continued

on page

(1248)

The Commercial and Financial Chronicle...
Thursday, March 19, 1953

Continued

from

phone Co. Underwriter—Kidder, Peabody

page

Co., New

York.
Southern Indiana Gas & Electric Co.

March 3 filed

114,167 shares of common stock (no par)
to be offered for subscription by common stockholders
*>f record

March

at rate

one

share for

new

each

six shares

held; rights to expire on April 10. Price—To
?fbe supplied by amendment.
Proceeds—To repay bank
loans and for new construction. Underwriter
Smith,
Barney & Co., New York.
—-

if Vandersee Engineering Co., Reno, Nev.
March 11 (letter of
notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
equipment and plant. Office—139 No. Virginia St., Reno,
Nev.

Underwriter—None.

stock. Price
$10 per share. Proceeds — For working
capital. Underwriter—A. J. Boldt & Co., Davenport, la.

Proceeds—To purchase Quaker City Airways, Inc. (Pa.),

Feb.

Freight Lines, Inc., N. Y.
(letter of notification) 149,000 shares of common
stock (par $1) in units of 20 shares. Price—$20 per unit.
?to purchase

ital.

operating certificates and for working cap¬

Office—2 East 33rd St., New York.

Underwriter—

None.

Television & Radio Broadcasting Corp.
Feb. 26 (letter of notification) 299,900 shares

of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For operating capital.
Office—c/o Morton M. Goldstock

mon

fine, 82 Devonshire Street, Boston 9, Mass.
—Jackson & Co., Inc., Boston, Mass.
Texas
March
1933

(4/13)

$7,000,000 of first mortgage bonds due
100,000 shares of cumulative preferred stock
new

construction. Underwriters

determined by competitive bidding. Probable
(1) For stock, Kidder, Peabody & Co. and Mer¬
Lynch, Pierce, Fenner & Beane (jointly); Kuhn,

bidders:
rill

Loeb &

Co.; Union Securities Corp.; Harriman Ripley &
•Co. Inc.; The First Boston
Corp.; Glore, Forgan & Co.
(2) For bonds, Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and Blyth &
Co., Inc. (jointly);
>

Salomon Bros.

& Hutzler; Union Securities
Corp.; The
Corp.; Kidder, Peabody & Co. and Merrill
Pierce, Fenner & Beane (jointly); Hemphill,

First Boston

Lynch,

Noyes & Co. and Drexel & Co. (jointly). Bids—Expected
11:30 a.m. (EST) on April 13.

to be received up to

stock

(letter of notification) 15,000 shares of common
stock (par $1). Price—At market
(approximately $5.25
per share). Proceeds—To E. A. Benson and R. F. Shima,
the two selling stockholders. Underwriter—Barrett Herrick & Co., Inc., New York.

1,200,000 shares of com¬
(par 10 cents). Price—25 cents per share. Pro-

West Coast Pipe Line Co.,

corporate

purposes.

Underwriter—Blair, Rollins & Co.,

^Tfralhimer Brothers,

new

offering.

Inc., Richmond, Va.

working capital.
Underwriter—Kidder, Peabody & Co., New York.
if Trans Caribbean Airways, Inc.

March 9

(letter of notification) 2,000 shares of Class A
(par 10 cents). Price — At market (ap¬
proximately $2.25 per share). Proceeds
To O. Roy
Chalk, President. Office
1010 Fifth Ave., New York.
Underwriter—None.
common

stock

share of stock.

Price

(par 50

$50 debenture and

supplied by amend¬
1,125,000 addi¬
private sale of $55,000,000 first mortgage bonds, to be used to build a 1,030
mile crude oil pipeline. Underwriters
White, Weld &
—

Proceeds—From sale of units and

tional shares of

common

Co. and Union Securities

Corp., both of New York.
fering—Expected in the Spring of 1953.

Of¬

stock held.

cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters—White, Weld & Co. and Union Se¬
curities Corp., both of New York.
Offering—Expected in
the Spring of 1953.
West Coast Telephone Co.
(3/30)
March 9 filed 50,000 shares of common stock
(par $20).
Price—To be supplied by amendment.
Proceeds—For

Underwriter—Blyth & Co., Inc.,

New York and San Francisco.

Westinghouse Electric Corp.

shares of

common stock to be offered under "Restricted
Stock Option Plan" to certain officers and other
execu¬

employees of corporation

and

its

subsidiaries.

capital.

Office—104 No. Tennessee
Ave., Atlantic City, N. J.

Un¬

derwriter—None.

JJnited Minerals Corp., Salt Lake
City, Utah
March *3 (letter of notification) 250,000 shares of
5%
^cumulative convertible
preferred stock (par $1) to be
♦offered in 50,000
units, each ^hit to consist of 50 shares
♦of this stock and 50
shares of United .Q,1lphui; & Chem¬
ical Co., Inc.
Price—$50 per unit/ Proceeds—Fftfi&erec-

ticm of sulphur plant.

City 1, Utah.

Office—518 Felt Bldg., Salt Lake

Underwriter—Greenfield

Co., Inc., New

York.
S. Gold Corp.,
Spokane, Wash.
March 5 (letter of
notification) 200,000
assessable common stock.

Price

—

Proceeds—For

shares of
cents

per

non¬

working capital.
Office—Empire State
Bldg., Spokane, Wash.
Underwriter—None.
United Sulphur & Chemical
Co., Inc.
March 13 (letter of
notification) 250,000 shares of

toon

stock

corn-

(par

cents)

issued

connection with
stock

units,

bonus

offering of 250,000 shares of preferred
United Minerals
Corp. and to be offered in

each

unit

consist

stock

United

Minerals

and

stock

United

Sulphur.

(See

Corp. above.)

50
50

shares
shares

also

United

preferred
common

Minerals

if United Telephone Co.,
Beilefontaine, Ohio
12
(letter of notification) 2.500
shares of

March

5%
preferred stock.
Price—At par ($100 per
share). Proceeds
For plant
expansion.
Office
127
S\o. Mam
St., Bellefontaine, Ohio. Underwriter
None.
• United
Utilities, Inc., Abilene, Kan. (4/1)
March 10 filed 319,122
shares of common stock
cumulative

—

be offered

for

(par $10)

subscription by common stockholders
about March 31 at the
rate of one new
ashare for each 2V2 shares
held; rights to expire on April
14. Price—To be
supplied by amendment. Proceeds—
ZEo acquire a two-thirds stock interest in
•of record

Investors Tele¬

for

share of

one

common

addi¬

common

preferred

Underwriter—To be named later.

was

Electric Corp.

announced that

stock

common

stock.

debt securities convertible into

Stockholders

meeting March 24

will

vote

the

annual

authorizing an, additional 1,000,000
shares of common stock.
Underwriters
Kidder, Pea¬
body & Co. and Estabrook & Co. handled offering in
November, 1949, of $6,000,000 2% convertible debentures.
on

—

Central Maine Power Co.
Jan.

it was reported
company plans sale later this
of $10,000,000 common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),

year

after distribution by New England Public Service
Co. of
its holdings of Central Maine Power Co. common
stock.
Probable bidders: Blyth & Co., Inc. and

Kidder, Peabody

& Co. (jointly); Coffin &
Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co.
(jointly); Harriman Ripley

Co., Inc.

Central Power & Light Co.
March 2 it was reported

company

50,000 shares of

new

Glore,

March 5 (letter of
notification) 300,000 shares of common
stock. Price—At par ($1
per share). Proceeds—To lease
government property for mining
purposes. Underwriter

Harriman

—None.

may

preferred stock.

be determined by competitive
Stone & Webster Securities

issue and

sell

Underwriters—To

bidding. Probable bidders:

Corp.; Lehman Brothers
(jointly); Blyth & Co., Inc.,
Ripley & Co., Inc. and Smith, Barney & Co,
Forgan & Co.

March

if Wyoming National Oil Co., Inc., Denver, Colo.
March 5 (letter of
notification) 1,500,000 shares of com¬
stock

(par 5 cents). Price—10 cents per share. Pro¬
drill wells.
Office—1608 Broadway, Denver,
Underwriter—None.

ceeds—To
Colo.

(jointly); Salomon Bros. & Hutzler.
•

Chicago Great Western Ry.

17 company asked ICC permission to issue and
$6,000,000 collateral trust bonds due 1978, to be se¬
cured by $9,000,000 first mortgage bonds held in the
treasury. Proceeds—To pay off $3,000,000 of notes and
for working capital.
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart

sell

if Young

Co., Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane.

(Thomas) Orchids, Inc.
March 10 (letter of
notification) 3.300 shares of common
stock (par $1). Price—At market
(about $33 per share).,

Jan. 9 it

Proceeds—To John W. Hanes, and Hope Y. Hanes.

Un¬

derwriter—None, but Smith, Barney & Co., New York,
and Newhard, Cook &
Co., St. Louis, Mo., will act as

brokers.

Cinerama

Productions

about

Corp.

reported company plans issuance and sale

was

500,000

shares of

pected to be around

$10

stock.

common

per

Price—Ex¬

share. Underwriter—Hay-

den, Stone & Co., New York. Offering—Postponed.

—

to present pre¬

some portion of the com¬
pany's financing program for 1953-1954 will involve the
$16,550,000 new securities, a portion of which will

and

if Williams Phosphate Corp., Rexburg, Idaho

sale of

involve

(par 50

to offer rights

stockholders

stock in the ratio of

Central Hudson Gas &

March 3 it

common

West Coast Pipe Line Co.,
Dallas, Tex.
Nov. 20 filed 1,125,000 shares of common stock

voted

common

stock for each four shares of either

stock and

—

program.

tional

Clevite Corp.
was announced
company plans public sale of

—

ic Tropical Laboratories, Inc.
March 11 (letter of
notification) 36,000 shares of common stock
(par $1) to be sold in units of 25 shares and
up. Price—$1 per share. Proceeds—For
working

Brothers; Union Se¬
Offering—Expected in April.

Corp.

one

mon

(4/1)

March 12 filed 101,500 shares of common
stock (par $5),
of which 99,000 shares are to be offered
by the company
and 2,500 shares
by a selling stockholder. Price—To be
supplied by amendment. Proceeds—For

curities

cents)

stock

tive

Inc., New York City. This is not

Weld & Co., Kidder. Peabody & Co. and Lee
Higginsoia
Corp. (jointly); Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Lehman

16 directors

units of

head group.

may

Underwriters—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; The
Corp.; Harriman Ripley & Co. Inc.; White,

and

to be offered in

& Co.

First Boston

common

—-For

if Textron Incorporated, Providence, R. I.
March 9 (letter of
notification) 10,000 shares of $1.25
convertible preferred stock (no
par). Price—At market
•{approximately $17 per share). Proceeds—For general

Smith, Barney

March

ployees of corporation and six subsidiaries, and 498,735

Offering—Date not set.

—

Blackstone Valley Gas & Electric Co.
Feb. 20 it was reported company
plans sale of $5,800,000
first mortgage bonds.
Proceeds—To repay bank loans.

ferred

Texas Western Oil Co.,
Houston, Tex.
Nov. 12 (letter of notification)
100,000 shares of common
stock (par 10 cents). Price—50 cents
per share. Proceeds
—

and

if Central Foundry Co.

Dallas, Tex.

Feb. 27 filed 200,000 shares of common stock
(par $12.50)
to be offered under
"Employee Stock Plan" to Em¬

working capital. Office—1 Main St., Houston, Tex
Scott, Khoury & Co., Inc., New York.

exact nature

this

15, 1964, and 580,000 shares of

seeds—To drill oil and gas wells and for
acquisition of
properties. Underwriter—Peter W. Spiess Co., New York.

Underwriter

later

Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.

construction

Texas Oil Exploration Co., Ft.
Worth, Tex.
Dec. 5 (letter of notification)
mon

ment.

Electric Service Co.

(no par). Proceeds—For

Victoreen Instrument Co.

one

filed

and

—To

Underwriter

—

stated that the company may

was

be in the
year with a sizable debt issue.
The
timing of the financing are still to be
determined. Stockholders will vote May 5 on increasing
authorized debt to $150,000,000. Proceeds—To be used tohelp pay for a $100,000,000 construction program for 1953.
market

Underwriters

Vault Co. of America, Davenport, Iowa
March 2 (letter of
notification) 10,000 shares of common

Feb. 4

Star Air

if Atlantic Refining Co.
March 16 it

(3/25)

Feb. 17 it

200,000 shares of common stock (following approval of
2-for-l split on April 6). Underwriters—F. Eberstadt &

Prospective Offerings

Co., Inc., New York; Prescott & Co., Cleveland, O.
Columbia Gas System, Inc., N. Y.
was announced company plans to Issue and sell

Agricultural Insurance Co.
March 2 it

was

reported company may offer rights to its
stockholders to subscribe for 100,000 additional shares of
capital stock (par $10) on a l-for-3 basis. Underwriter
—Blyth & Co., Inc., New York.
Offering—Expected in

April

Oct. 10 it
common

was

(5/12)

reported company plans issuance and sale

For construction

Proceeds—

Underwriters—To be deter¬

program.

mined

by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Blyth & Co., Inc., and
Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel
First

Co.

(jointly); Lehman Brothers;
Boston Corp.; Harriman Ripley & Co., Inc.

Registration—Planned
expected at 11

Aluminium

for

April

(EST)

a.m.

10.

Bids—Tentatively

May 12,

Ltd.

Feb. 12 it was reported
company may be in the market
this spring with a
financing program to raise about $40,000,000.
A l-for-10 offering of common stock

(about

818,658 shares) is said to be under study. Proceeds—For
expansion

program.

Underwriters

—

The

First

Boston

Corp. and A. E. Ames & Co.,
Ltd., acted as dealer-man¬
agers in October, 1951, stock
offering to stockholders.
Arkansas Power & Light Co.
F6b.

was

announced

company may issue and sell,
probably in June, 1953, about $18,000,000 of first mort¬

gage

bonds.

Proceeds—To

repay bank loans and for
Underwriters—To be determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Lehman Brothers and
Stone & Webster Secu¬
new

construction.

rities Corp. (jointly); The First
Boston Corp.; White.
Weld & Co., Blyth & Co.
Inc., Equitable Securities Corp.
and
Central
Republic Co.

Pierce,. Fenner &
(jointly).

(jointly);

Beane

and

Union

Merrill

Securities

Lynch,

Corp.

Proceeds—To

repay bank
Underwriters—To

construction program.

determined

ders:

.of $18,000,000 first
mortgage bonds due 1983.

(probably sufficient to raise between
$25,000,000) and additional debentures

early in the Spring of 1953.
be

Alabama Power Co.

The

and

loans and for

May.

Jan. 28 it

stock

$20,000,000

For

Beane,

by cOr^oetitive bidding. Probable bid¬
Merrill
Lynch, Pierce,
Fenner
White, Weld & Co. and K. W. Pressprich
stock,

& Co.

(jointly); Morgan Stanley & Co. For dchej^urei,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Commonwealth Edison Co.
March 10 company announced that in the next four
years
it expects to raise about $280,000,000 of new

capital to
$500,000,000 construction program during
No conclusion has been reached as to the
type of securities to be issued or when they will be sold.

help finance

that period.
Probable

bidders for bonds: Halsey, Stuart & Co.
Inc.;
Kuhn, Loeb & Co., Lehman Brothers and American Se¬
curities Corp. (jointly); Glore, Forgan &
Co.; The First
Boston Corp. (Glore, Forgan & Co. and The First Bos¬
ton

Corp.

underwrote

offering

convertible

ferred stock to common stockholders last

pre¬

November.)

Consolidated Natural Gas Co.
Feb. 6 it

was reported company is considering debt fi¬
nancing, probably a maximum of $35,000,000 to $40,000,000. If competitive, probable bidders may include: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley & Co. and The

First Boston Corp. (jointly); White, Weld & Co. and
Paine, Webber, Jackson & Curtis (jointly). Offering—
Tentatively expected in late spring.

Delta Air Lines,

Inc., Atlanta, Ga.

Feb. 11 company filed an application with SEC covering
proposed issue of $10,695,846 of 51/2% convertible de¬
bentures (subordinated) to be issued in exchange for

Chicago & Southern Air Lines, Inc.,
merger

common stock under
plan at rate of $21 of debentures for each C. & S.

share.

Debentures

mon

stock

rate

will
of

one

convertible
share

for

into

each

Delta

com¬

$35 principal

amount of debentures.
,

Number 5204... The Commercial and

Volume 177

announced stockholders on

approving

vote on

Louisiana

Light Co.

Delaware Power &
3Teb. 24 it was

April 21 will

proposal to increase the authorized

Dec.

the office of the company, Rio

Halsey, Stuart & Co. Inc.; Kuhn, Loeb

New York

termined

Ripley & Co., Inc.; Equitable Securities Corp.

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Mer¬
rill
&

Telegraph

common

scheduled to be received

Probable bidders:

Blyth & Co., Inc. and Equitable Secu¬
Corp. (jointly); W. C. Langley & Co. and The First
Boston Corp. (jointly); Kidder, Peabody & Co. and Mer¬
rill Lynch, Pierce, Fenner & Beane (jointly); Union Se¬
curities Corp. Bids—Expected at noon (EST) on April 21.
Registration—Scheduled for March 19.
rities

Underwriter—None.

Blosser

sought permission of the Michigan
Commission to issue and sell $40,000,000 35-year

general and refunding mortgage bonds, series M, to carry
4%. If competitive, bidders may

interest at not to exceed

Spencer
(jointly). Proceeds would be used to pay

& Co.

Trask

Kuhn, Loeb & Co.;

Halsey, Stuart & Co. Inc.;

include:

Corp.; Coffin & Burr, Inc. and

'The First Boston

Co.
March 5 it was reported public sale of 120,000 shares of
common stock is
soon expected.
Proceeds—To selling
stockholders. Underwriter—White, Noble & Co., Grand
Detroit Stamping

Rapids, Mich.

Associates
2Feb. 20 it was announced company plans sale of $7,000,•000 collateral trust mortgage bonds due 1973.
Under-writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &
Co. and Stone & Webster Securities Corp. (jointly); The
.First Boston Corp.; White, Weld & Co. and Kidder, PeaEastern Utilities

fcody & Co. (jointly); Glore,

Forgan & Co. and Harriman

Ripley & Co. Inc. (jointly).
an April.

Bids—Tentatively expected

reported company is planning issuance
of additional common stock to
stockholders on a l-for-15 basis. Merrill, Lynch,

Feb.

and

sale

common

was

this

summer

Pierce, Fenner & Beane
«tock offer.

acted as clearing agent in last

sell

(6/9)

Gulf Power Co.

$7,000,000 of first mortgage bonds due
construction

—For

program.

1983. Proceeds

Underwriters—To be de¬

competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; The First
Boston Corp.; Kidder, Peabody & Co. and White, Weld
Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane,
Salomon Bros. & Hutzler and Drexel & Co. (jointly);
Union Securities Corp.; Equitable Securities Corp.; Lehjnan Brothers. Registration—Planned for May 8. Bids—
termined

Tentatively expected at 11 a.m. (EST) on

-Jan.

Utilities

States

Gulf

16, it

June 9.

construction program, expected to
(bond

cost between $26,000,-

$28,000,000 this year. The exact amount

*000 and

offering

has

not

of the
Under¬

yet been determined.
determined by compet¬

writers—For common stock to be
itive

bidding.

Probable bidders: Merrill Lynch, Pierce,
Lehman Brothers (jointly); Stone

Fenner & Beane and
& Webster Securities

Corp.; Carl M. Loeb, Rhoades & Co.

Helicopter Air Service, Inc., Chicago, III.
was reported company has applied to the CAB
for a certificate of convenience covering service from

Feb. 9 it

Detroit

Cleveland,

and

also in

Chicago, where the

Co., both of

Metropolitan Edison Co.
was reported company plans to issue and sell

May about $8,000,000 of first mortgage bonds due 1983.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and Salomon Bros. & Hutzler (jointly); White,
Weld &

due 1967 and

in units of

convertible subordinate debentures
20,000 shares of common stock to be offered
$1,000 debenture and 25 shares of common

4%-6%
a

Middle South Utilities,
Feb. 3 it

was

sell

and

Inc.

York.

Feb.

tional

company is considering addi¬
Underwriter—Probably Courts & Co.,
(Ga.) and New York.

was

reported

financing.

Atlanta

Long Island Lighting Co.
Dec.
bank

has established a
credit in the amount of $40,300,000 extending to

was

announced

company

1, 1953, to be refinanced by the issuance of new
securities. Underwriters—(1) For common stock, prob¬

Dec.

Blyth & Co., Inc. and The First Boston Corp.
(jointly). (2) For preferred stock, may be W. C. LangS.ey & Co. (3) For bonds, to be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co,
Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co. -

ably

and for

construction.

new

Offering—Expected in May.

27, H. H. Siert, Treasurer, announced that following
the proposed offering in May of 548,100 shares of common
stock to stockholders, the company plans to issu®

$40,000,000 of new debentures. Proceeds—To re¬
bank loans and for construction program. Under¬
writers—To be determined by competitive bidding. Prob¬

and sell

$15,000,000 of additional common stock.

be determined by

loans, etc. Underwriters—To
competitive bidding. Probable bidders:

Co. Inc.; Kidder, Peabody & Co. and Merrill

lynch, Pierce, Fenner & Beane (jointly); Lehman Bro¬
thers; The First Boston Corp.; Union Securities Corp.
and Equitable Securities Corp. (jointly).
if Minneapolis-Honeywell
March 11 it

Regulator Co.

announced stockholders will on April 28

was

increasing authorized common stock from 3,440,-

3,950,000 shares

and the preference stock from

160,000 to 210,000 shares.
Securities

Underwriter—Probably Union

Corp., New York.

Boston

First

The

(jointly).
Oklahoma Gas & Electric Co.

March 6
of

Mobile Gas Service

Corp.
President, announced that, after
proposed two-for-one split-up to be voted upon April 24,
the company will offer to its stockholders 40,000 shares
of additional common stock on
a
five-for-one basis.

Underwriters —
May be determined by competitive bidding. Probable
bidders:
First Boston Corp.; Blyth & Co., Inc.; Bear,
Stearns & Co. and Wertheim & Co. (jointly).
—

construction

For

sale

announced company plans issuance

was

the middle of 1953 of $10,000,000

near

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co. and the First Boston Corp. (joint¬

ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Glore, Forgan & Co.; Leh¬
man
Brothers; Equitable Securities Corp.; Union Se¬
curities Corp. and Salomon Bros. & Hutzler (jointly)}
Merrill Lynch, Pierce, Fenner & Beane; Harriman Rip¬
ley & Co., Inc.

if Montana Power Co. (5/5)
March 16 it was reported company may issue and sell
an issue of $18,000,000 debentures due
1978. Proceeds—
bank loans and for new construction. Under¬
writers—To be determined by competitive bidding. Prob¬
repay

Halsey, Stuart & Co. Inc.; Smith, Barney

Co., Blyth & Co., Inc., and
(jointly); Union Securities Corp.
opened on May 5.
&

New Jersey Power
Feb. 11 it

was

Bros.

Weld &

Higginson Corp.
Bids—Expected to be

Lee

& Light Co.

sale

first mortgage bonds due 1983. Un¬
determined by competitive bidding.

Halsey, Stuart & Co. Inc.; Salomon
Hutzler; Union Securities Corp. and White
Co. (jointly); The First Boston Corp. and Kid¬

der, Peabody & Co. (jointly); Carl M. Loeb, Rhoades &
Co.; Equitable Securities Corp.; Kuhn, Loeb & Co.,
Lehman Brothers and Goldman, Sachs & Co. (jointly);
Merrill

Lynch,

Pierce,

Fenner

Beane.

Offering—

Probably in May or June.
New York State Eiectric

Feb. 27 it

was

& Gas Corp.

reported that company may,

later in 1953,

(following
private sale of 75,000 shares of 4.40% preferred stock,
par $100, and $5,000,000 of 3%% debentures due 1991
(latter expected in April). Underwriters—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp. and Glore,
Forgan & Co. (jointly); Elyth & Co., Inc. and Smith,

issue and sell

stock at the rate of one new share for

Proceeds

held.

$20,000,000 first mortgage bonds

—

For

construction

each;

program

biddings
Lynch*

The First Boston Corp.; Merrill

Pierce, Fenner & Beane; Blyth & Co., Inc.; Union Secu¬
Corp. Registration—Expected about March 19. ,
Natural

Oklahoma
Feb.

Gas

Co.

announced that the directors were

was

con¬

sidering authorizing an offering of a sufficient number of
shares of new common stock (par $7.50) to raise $4,—

would

This

000,000.

split of
into
Proceeds would bo
stock

proposed

present authorized 1,639,884 shares of $15 par value

3,279,768 shares of $7.50 par value.
used for the company's construction program.
Under¬
will
be determined
by competitive bidding.
Probable bidders: Stone & Webster Securities Corp.#
writers

Shields

Ripley

Co.; Lehman Brothers and Harriman

Co., Inc. (jointly). Offering—Expected in June.

if Ormond Corp., Albuquerque, N.
March

was

SEC

with the

issue of stock, which will be offered

Office—5003

nationally.

announced company plans to

Central Avenue, N. E., Albu¬

N. M.

querque,

Pacific Northwest Pipeline

Corp.

received FPC permission to file a third'
substitute application proposing to construct a 1,466mile transmission line extending from the San Juan (*
Basin in New Maxico and Colorado to market areas la¬
the Pacific Northwest.
Estimated overall capital cosT:

Jan. 29 company

the project is $186,000,000, including $2,000,000 fo:i*
working capital. Financing is expected to consist of firsX
mortgage pipe line bonds and preferred and commoa
stocks.
Underwriters—White, Weld & Co. and Kidder^,

Peabody & Co., both of New York, and

Dominion Secu¬

rities Corp. Ltd., Toronto, Canada.

Pennsylvania Eiectric Co.
Feb.' ll it was reported company plans to issue and seU
in June about $12,500,000 first mortgage bonds due 198S
and a like amount later on. Proceeds—For constructions
program. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Oa;,

Inc.; Kuhn, Loeb & Co.; Kidder, Peabody
Boston Corp.; Equitable Securities Corp.
Public Service Co. of Indiana,

Co.; The Fiis$

Inc.

announced company plans in May 02"
June to issue and sell 600,000 shares of new cumulative

March

was

preferred stock (par $25), subject to approval of an in¬
crease in authorized capitalization.
Proceeds—For con¬
struction program.

announced company plans issue and

bidders:

Probable

common

in April tor

stockholders 241,000 additional shares*

rities

program.

and
first mortgage
bonds. Underwriters—To be determined by competitive

Dec.

announced company plans

was

common

Underwriters—To be determined by competitive

March 6. Maurice White,

Proceeds

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.#
Corp. and Kidder, Peabody & Cos.

able bidders:

Probable bidders:

reported company may later this year issue

about

derwriters—To be

Inter-Mountain Telephone Co.

loans

short-term

Feb.

Proceeds—To repay bank

of about $5,500,000

Faine, Webber, Jackson & Curtis, Boston and New

Proceeds—

share for each five shares held.

new

repay

Business—Company was

Price—$1,000 per unit.

one

Co., Inc. and Union Securities Corp. (jointly); Blyth &
Co., Inc.

•organized in 1947 to design, develop and manufacture
iX-ray machines and other equipment. Underwriter—

?stock.

offer to its

able bidders:

■of $800,000

stock

Co.; The First Boston Corp.; Kidder, Peabody
& Co. and Drexel & Co. (jointly); Harriman Ripley &

'Chicago, 111.

High Voltage Engineering Co., Cambridge, Mass.
was reported company plans early registration

announced

was

Underwriter—None.

•

company has informed thar
Commission that it proposes
an offering of 548,100 additional shares of commoar
(par $10) to its common stockholders on the basi*

make

is now operating a mail pick-up service in sub¬
urban towns. Underwriter—May be Cruttenden & Co.,

Feb. 18 it

of new

$23,000,000

Nebraska State Railway

company

announced that company plans to

Northern Natural Gas Co.

Monongahela Power Co.

^6,000,000 in common stock in June and a certain amount
■of first mortgage bonds later in the year. Proceeds—For

was

additional

Feb.

Feb. 11 it

Co.

announced company is planning to sell

was

(par $100).

pay

000

plans issuance and sale

700,000 additional

its parent,

Co.,

stock

construction.

John P. Courtright, President, reported that
company plans some long-term debenture financing. The
proceeds are expected to be used to retire bank loans
and to pay preferred dividend arrearages.

vote

,Jan. 28 it was reported company

McCormick

and

Offering—

Stock

issue an^
securities in thai
near future
(in addition to 80,000 shares of cumulative?
preferred stock recently offered). Proceeds—For new
Jan. 7 it

Marion Power Shovel Co.

March

Blyth &

General Public Utilities Corp.

■of

McDowell,
Chicago, 111.

construction.

lor new

June 23.

Northern Indiana Public Service Co.

if Maremont Automotive Products, Inc.
March 6 it was reported early registration was expected
of approximately 210,000 shares of common stock, part
for account of company and part for selling stockholders.
Underwriters
Hallgarten & Co., New York; Straus,

company

Company also plans to issue and sell to American Tele¬

—

(jointly); Kuhn, Loeb & Co. Bids—Tentatively

Detroit Edison Co.
6

Lynch, Pierce, Fenner & Beane and Glore, Forgan
Co.

announced company plans to issue an un¬

(6/23)

applied to New York P. S. Commission
permissioa to issue and sell $35,000,000 of refunding
mortgage bonds, series G. Proceeds—To repay bank loans
and for construction program. Underwriters—To be de¬

for

phone

specified amount of convertible debentures, which may
Sirst be offered for subscription by stockholders.
Pro¬
ceeds—To retire bank loans and to meet construction
costs.
Meeting—Stockholders on April 14 will vote on

March

Telephone Co.

Feb. 26 company

Underwriters—To be determined by competitive bidding.

Bros. & Hutzler.

debentures.

Bros. & Hutzler

mon

Louisiana Power & Light Co.

Detroit Edison Co.

<•

Drexel & Co.

(4/21)
Feb. 25 it was reported company may issue and sell
60,000 shares of cumulative preferred stock (par $100).
Proceeds—To refund present outstanding preferred stock.

$110,000 each from Nov. 1, 1953, to and including May 1,
1968.
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬

new

issue and sell

Co. (jointly); Hemphill, Noyes & Co. and
(jointly); Kidder, Peabody & Co. and Salo¬
(jointly); Lehman Brothers; Har¬
riman Ripley & Co., Inc.
Barney

may

Co., Lehman Brothers and A. C. Allyn & Co., Inc.
(jointly); Blyth & Co., Inc.; White, Weld & Co. and
Shields & Co. (jointly); Salomon Bros. & Hutzler; W.
C. Langley & Co., The First Boston Corp., and Glore,
Forgan & Co. (jointly); Merrill Lynch,-Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly); Harri¬

Denver 1, Colo., up to noon (MST) on
March 31 for the purchase from it of $3,300,000 equip¬
ment trust certificates, series S, to be dated May 1, 1953,
and to mature in 30 equal semi-annual instalments of

authorizing the

company

Bldg.,

Feb. 9 it was

Light Co.

announced

Probable bidders:

^ Denver & Rio Grande Western RR. (3/31)

mon

Power &

was

mid-year about $10,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.

man

'Grande

preferred stock from 200,000 shares to 300,000 shares
(par $100). Probable bidders for any new preferred
stock financing may include Blyth & Co., Inc. and The
.First Boston Corp.
(jointly); White, Weld & Co. and
Shields & Co. (jointly); Lehman Brothers; W. C. Langley & Co. and Union Securities Corp. (jointly); Morgan
Stanley & Co. Stuart Cooper, President, said it is pos¬
sible that common stock may be sold later in the year.
Bids will be received at

(1249)

Financial Chronicle

Underwriter—Blyth & Co., Inc., New

York and San Francisco.
Public Service Co. of New Hampshire
Nov.

was

announced company plans to issue andlf

approximately $5,000,000 of bonds in May or June,.
1953, and in the latter part of 1953 to issue sufficient
common shares to raise about $4,000,000.
Proceeds—Tc&

sell

repay

bank

loans

and

for

new

construction.

Under-

bidding.
Probable bidders: For bonds, Halsey, Stuart & Co. Incj;
The First Boston Corp. and Coffin & Burr, Inc. (jointly):;
Kidder, Peabody & Co.; White, Weld & Co. For stock*
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly)#,.

writers—To

determined

competitive

Harriman Ripley & Co. Inc.
Public Service Co. of Oklahoma
March

was

reported company may issue and sell

40,000 shares of new preferred stock (par $100).
writers—To
be
determined
by competitive
Probable

bidders:

Under¬
bidding,.

Glore, Forgan & Co.; Smith, Barney

Continued

on page

(1250)

The Commercial and Financial Chronicle

Continued

from

Texas

page

Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co., Inc.
Central Republic Co. (Inc.).
Proceeds —For addi¬
tions and improvements.

Natural

Gas

was

announced

that

bonds

and

common

sale

bonds.

company plans issuance and
$50,000,000 of first refunding mortgage
Proceeds—To repay bank loans and for new con¬

Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. ana Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First
Boston Corp.

000,000

will
for

additional

for

used

construction.

new

was

reported

sell

50,000

(par

$100).

later

company

Probable

Underwriters

this

year

cumulative
—

May

Probable bidders:

Bros.

bonds.

Underwriters—To be determined

$5,-

Beane

and

Union

& Hutzler.

Union

Bids—Tentatively expected to

Welti

and

determined

tional

White, Weld

stock

common

$15,000,000

was

rights to issue

new

Co.

announced stockholders

all

was

reported company may issue and sell in
of first mortgage bonds and be¬

June? 1953, $10,000,000
tween $14,000,000 and

$18,000,000 of debentures.

plans to sell addi¬
sufficient to raise about
Proceeds — To increase in¬

West Texas Utilities Co.

Marcji
and

2 it

was

reported that company plans issuance
shares of new preferred stock. Under¬

|ale of 100.000

writers—May be determined by competitive bidding.
Provable bidders: Stone & Webster Securities
Corp.;
Harriman Ripley & Co.,
Inc.; Union Securities
Corp.

or it
may be considering entering <9©me field not
occupied—or it may merely be studying the advisa¬
bility of altering policies now in operation.. In each and

help to the President
subject itself.

Public Service Go. of
New Mex. Pfd. Offered

every case it may be taken for
granted that there is a
question of economic consequences to consider. In
many,
if not most
instances, economic consequences may be by

It may well
fully "jelled"

far the most

Allen

reaching conclusions

Advice

Co. of New

Level-Headed

attached

issues

All Presidents and all times
have had
Most of them have

must, of course, be enlightened, and
level-headed; else it
may well be, probably would be, worse than none at all.

be it

seems

that the President needs and must
have sound advice

one

quality

another.

sought and obtained eco¬
another, in one way or

Any Chief Executive who must sit at the head
major government of this day and time
simply must

have it.

Popular demand now insists that government
play a
larger role in the economic affairs of the nation
probably
than ever before. Even those
who profess
hardy belief in
laissez-faire tend to wince and relent and refrain at vari¬
ous

points and at various times in their
political behavior.
Apparently for the time being at least any Administration
must, at least in
of

some

yield to this popular trend
hope to be the case, the move¬
may be called) is losing some of its mo¬

thought—even if,

ment

(if such it

mentum.

measure,

as we

The advice provided President Truman

during recent
by the Council of Economic Advisers has been
any¬
thing but competent, and hence the
functioning of the
organization has for the most part been a
liability rather
than an asset to the
Administration and to The
country.
years

It has
upon occasion had among its
membership or on its
staff economists with
every considerable formal training
and some
experience. Some of these have! entertained
ideas which could have been

even

the most vital,

guidance and control of

wild and of economic nationalism

probably not equalled since the days of rampant
mercantilism a
century or two ago. It has undertaken the
grown

and

government which is today over¬
interwined with the

day-to-day affairs of

the citizens and of the
business enterprises of the
so under the

necessity of maintaining

simply

can not

labeled the

and

state of interna¬

economic
philosophy or beliefs it
proceed without very careful and realistic
own

knowing, of course, how much it
formulating the official "line"

It may
with it,
and

have had much
but there can be

or
no

had to do with

of the

shaping

Administration.

may have had little
doubt that it worked

diligently to spread the gospel
Apart from the fact

not

be either positive or negative—that is to
contemplate withdrawing from some activity

preferred

that the

good gospel,

not

function

such

and

from March

stock.

priced

accrued

The

$100

dividends-

15.

Proceeds
new

150,000 shares

common

stock

per

from

the

sale

the

preferred stock will be added

the

company's

general

funds

and together with other funds will
be used primarily to finance the

company's

construction

which

started

program

in 1951 and is
scheduled for completion in 1954.
It is estimated that construction
costs

was

during the

1954 will

1953

years

and

approximate $11,963,000.

Each share of series A
preferred
has attached a non-detach¬

stock
able
to

warrant

purchase

mon

stock

entitling the holder
five

$11,371/2

before April
per

before

April

com¬

per

1, 1955 and at
thereafter

1, 1957.

The

new

earnestly

once

may
be redeemed at $105
share prior to March 15, 1954
and at receding
prices thereafter

per

until

the

we
an

it may

needs is sound advice from

sphere

15,

1963

after

which

Public

Service
is

Co.

operating

New

public

utility company
engaged
prin¬
cipally in the generation, pur¬
chase, distribution and sale of

electricity and in supplying vari¬
ous

communities with water. Ter¬

ritory served includes
in north central
a

section

large

area

New Mexico

southwestern

and
New

Mexico

having a population
approximately 250,000.

it had been de¬

Waddell & Reed Add
gospel in this

think

organization.

say

March

redemption price is $100.

Mexico

termined.

consideration of the economic
consequences of actions it
may have under advisement.
Action under advisement
may

that

desired,

served chiefly as a sort of
political (or possibly eco¬
nomic) evangel of the Administration. We
have no way

significance and effect.

Whatever its

years.

day, and

tional preparedness that
almost any major move it
may
make or it
may contemplate is fraught with extensive
and often profound
economic

value

stock

only, possibly not

defect of this
system

"Propaganda Ministry." It has been often said
regularly adopted the "line" President Truman

run

live today and the
today in a world of political
we

par

extreme

nationalism

however,

must function

aggregate of

$12.37 l/z

as it has been practiced in recent
In Europe, certainly in Russia or
any of the satel¬
lite countries, and for that
matter in Hitler's
Germany or
Mussolini's Italy, the Council would have been

Aside from all
this,

Administration

are

stock

subscrip¬
expiring April 1,

Nor is that the

Mexico, to which

common

warrants

might be termed the economics
been little short of bizarre.

are

SI00 par

entitling holders to purchase

helpful. The Council has,
however, been dominated by those who had neither formal
training in economics nor experience in business. What
of the Council has often

associates

1957

study the

may

matters economic.

and

tion

It follows that the President
needs constantly avail¬
able to him the
very best and the very soundest economic
advice from advisers who are

Needed

Co.

value cumulative preferred
stock,
series A
5% of Public Service

important of the desiderata.
Must

things

offering 30,000 shares of

presented and bring to the Chief Executive in brief
and authoritative form the
results which may
reasonably
be expected from this or that
line of action. This counsel

advice of

com¬

Boston Corp. (jointly).

competent

nomic

include: Halsey, Stuart & Co. Inc.;
Securities Corp. and Lehman Brothers
(jointly);
Blyth & Co, Inc., Smith, Barney & Co. and
White, Weld
& C6.
(jointly); W. C. Langley & Co. and The First
may

need of it.

March 25 will

Washington Water Power Co.

Dec/JS it

company

(jointly); Union Securities Corp.; Lehman Brothers
Bear, Stearns & Co. (jointly);
Kidder, Peabody &

thinking in regard to them, the public at

Sound

and

(jointly).

of action

has

But however all these

White,
(jointly);

Corp.

Union

in subsidiaries.
Underwriters—To be deter¬
by competitive bidding. Probable bidders: The
First Boston
Corp., Blyth & Co., Inc., First Southwest
Co., Rauscher, Pierce & Co., Inc. and Dallas Union Trust
and

Securities

ible&3V4% debentures due May 1, 1976. Underwriter—
May/be Paine, Webber, Jackson &
Curtis, New York and
Boston.

(no par)

money.

Equitable

Corp., Harriman Ripley & Co., Inc.

part of increased stock without prior
on reserving part of the
additional shares for issue upon
conversion of convert-

vestments

yet. Possibly some organization such as the Council of
Economic Advisers, if
properly manned and used, could

be of real

program.

offering to stockholders; also

mined

Securities

little precise information.
be that the President's own
ideas have not

this basic

com*

$30,000,000 of

construction

votq bn increasing authorized common stock from
l,900,r
000 gshares to 2,500,000 shares and on
granting directors

petitive, bidders

Corp. (jointly).

We See

the moment

1953

stock to

Walworth Co.

Feb/20 it

May 19.

Co.

now

the President's

issue and sell in

may

common

basis and

Gold/nan, Sachs &

Securities

Texas Utilities Co.
Feb. 26 it was announced

Continued from first page

l-for-15

Proceeds—For

determined

may

preferred

Corp.
(jointly); Lehman Brothers; Blyth & Co. Inc., and Stone
Webster Securities

reported company

Underwriters—For

com¬

Corp., Kidder, Peabody &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly);
White, Weld & Co.; The First Boston Corp.; Kuhn, Loeb
& Co., Lehman Brothers and Salomon
Bros. & Hutzler
(jointly). Bids—Expected to be received up to 11:30 a.m.
(EST) on May 19.

& Co. and

Corp.

was

debentures.

new

bidders:

Kidder, Peabody & Co. (jointly); W. C. Langley & Co.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Fenner

Co., Inc., New

The First Boston

sale

bonds:

by competitive bidding.

mortgage

sell about
Proceeds—For

planning issue and
$7,000,000 of cumulative preferred stock. Pro¬
ceeds—For additions and improvements. Underwriter—
May be determined by competitive bidding. Probable

$30,-

Southwestern Gas & Electric Co.

Pierce,

first

stockholders

mon

Texas Power & Light Co. (5/19)
Feb. 26 it was reported
company is

bank loans.

stock, none. For debentures, to be
competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.,

mon

Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co.; The First Boston
Corp., Blyth & Co., Inc.
and Kidder, Peabody & Co.
(jointly). Any stock financ¬
ing may be via stockholders.

stock

Feb/11

Gas

May^r June about $20,000,000 of

was

000,000 to be raised through sale of stock

received up to 11:30 a.m. (EST)

reported that approximately $30,000,000
of first mortgage bonds will be
publicly offered, prob¬

and

United

(jointly); The First Boston Corp.; Union Secu¬
rities Corp.; Hemphill,
Noyes & Co. and Drexel & Co.
(jointly); White, Weld & Co.; Lehman Brothers; Salo¬

Corp. and Harris, Hall & Co. (Inc.) (jointly).

ably in June. This is in addition to

Brooks

Beane

Southern Natural Gas Co.

Underwriter—Probably P. W.

bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb &
Co., Blyth & Co., Inc., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &

program. Underwriters—May be
by competitive bidding. Probable bidders for
Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Harris, Hall & Co. (Inc.)
(jointly); Blyth & Co., Inc.;
Kuhn, Loeb & Co. Probable bidders for preferred: The

issue

that, following proposed twofotf-one split-up of the common stock to be voted
upon
March 24, company plans to sell
100,000 additional shares
of fcommon stock, part to stockholders
and part
privately.

petitive

determined

Feb.

early June.

Uftton Wire Rope Corp.
March 6 it was announced

additional shares not sub¬

or their assignees. Pro¬
be used for expansion
program.

construction.

bonds:

Proceeds

any

Texas Power & Light Co. (5/19)
Feb. 26 it was reported
company may

—For 1953 construction

bidders

for

& Co. Inc.: Salomon Bros. & Hutzler.

11, William C. Mullendore, President, stated that
company is considering selling $25,000,000 of first mort¬
gage bonds and $15,000,000 of preferred stock. Proceeds

(jo|h|ly). Bids—Tentatively
in

Bids will be received

March

and

(jointly);
Ripley & Co., Inc.
scheduled to be received

Goldpan, Sachs & Co. and Harriman

and

it Southern California Edison Co.

Feb.

and

^ Texas-New Mexico Ry. (4/15)
by the company up to noon (EST)
April 15 for the purchase from it of $960,000
equip¬
ment trust certificates. Probable bidders:
Halsey, Stuart

struction.

•

stock

ceeds would

tive

First Boston

Co. and Merrill
Lynch, Pierce, Fenner & Beane

company will issue
in the ratio of 75%

scribed for by other stockholders

announced

was

June

stock

Pipeline Co.

25%, respectively.
It is anticipated that Peoples Gas
Light & Coke Co. will subscribe for about 67% of the
common

Public Service Electric & Gas Co.
Feb.

sell

and

Illinois

Feb.
&

Thursday, March 19, 1953

...

that

this

What

the

sound economist.

case

was

the

real

President

If he needs

propaganda minister, let him find him elsewhere.

(Special

to The Financial Chronicle)

BEVERLY

HILLS,

Calif.—

Richard B. Barnitz has been added
to

the

staff

Waddell

Reed,

Inc., 8943 Wilshire Boulevard.

Volume

Number 5204

177

The Commercial and Financial Chronicle

...

(1251)
that

apparent

borrowing

new

in prospect.

Two With Frank Edenfield

Arcturus Eleclronics

(Special

Good

Equity

Bankers
week's

Debentures Offered
this

out

big block of Public Service

Electric
are

Demand

bringing

Gas- Co.

reported

market

found

the

receptive mood.

Involving

stock

common

have

block of 750,000 ad¬
shares, with a value of

ditional

around

Little
the

market

this

remains

look

The

week.

situation

with

"dead-center"

and

change developed in

or no

complexion of the investment

inclined

people

for

continuation

the

.stalemate

pending thq marketing
of the big Allied Chemical deal
due early next month.
There was, however,

•

be look¬

ing better before that time. Some
dealers

reported

evidence

of the

mildest reawakening of buyer in¬
terest

though not with

emphasis

current

price

cording to dealers,
broad

attracting

was

this

potential

the form of

the

part

least

look

which
for

portfolio

have

one

three

prices and yields

ing

these

show

bonds

to The <Financial

staff of Bennett &

inclination

take

mit

that

the

Chemical
lot of

$200

issue

bonds."

million

stacks

that
to

leaning to the view

if they wait for the big deal
and

come

ket

experience

may

heart

the general

leave

and

Calif.—Frank
affiliated

Financial

with

Oscar

Sixth

Kraft

than

rather

latitude prevailing under the first

procedure.
instances

bankers

of the Union

with

common

the

stock,

about

velops, the
been
the

latter

The

the

had

price

for

would

yield.

this

have

But

Atlantic

the

111.

eher

was

jBros.

Refining

will

crease

approve

1952

year

of funded

closed

company

with
debt

$37,500,000

books, it is

National

are

NOTICE

Bank,

Metuchen, in the State
closing its affairs.
All

and

Beane,

located

New

Jersey,

creditors

Is
the

hereby notified
undersigned, at 85

Metuchen, N. J.

27,

PAYMENT

GENERAL

March

16,

busi¬

books

day

„

per

the

capital

March

31,
S.

1953.

1953

United Shoe Machinery
Corporation

The Directors of this
Corporation have de¬
clared a dividend of 37'/2 cents
per share on
the
Preferred
capital stock.
They have also
declared
a
dividend
of
62^2 cents per share
on
the
Common capital stock.
The dividends
on
both Preferred and Common stock are
able

STOUT,

Secretary

the

May

pay¬
record at

1953, to stockholders of
business April 3,
1953.

WALLACE

KEMP,

Treasurer.

NEW

Directors

YORK

this

Tablet & Stationery

WESTAB

New

England Gas

Corporation

and Electric Association
DIVIDEND

Notice

|
I

NO.

Trustees

declared

have

and

of
&

rate

the

of the

Common

Stcck

April

such

15,

Western

1953,
at

Tablet

to holders of
close of busi¬

the

§
§j

the

common

the close of business

March

23, 1953.

ness

moore, jr., Treasurer

March 12, 1955

26,

1953.

BACH,

Treasurer.

TISHMAN REALTY &

March

CONSTRUCTION CO.

DIVIDEND NOTICE

company

The

Board

Directors

de¬

PACIFIC GAS AND ELECTRIC CO.

clared

regular

dividend

to stock¬
business on

DIVIDEND NOTICE

(35c)

FRAHER, Secretary.

per

Stock

mon

quarterly

thirty-five cents

1953,
of

Stationery Corporation has been declared

g
|j

Association, payable April 15,
1953 to shareholders of record

hereby

given that a dividend
$0.60 per share on the issued
outstanding shares without par value

the

record' of

will

the Com¬

and

Common Stock Dividend No. 149

Dividend No. 197
dividend

seventy-five
cents
(75c) per share on all the outstanding stock of
the Company has been declared payable April
28, 1953 to stockholders of record at the close
if
business
April
14,
1953.
,
W.

Board

of Directors

1953, declared

on
March 11,
cash dividend for the

of the year of 50 cent#
per share upon the Company's common,
capital stock. This dividend will he
paid by check on April 15, 1953, to

SUPERHEATER, INC.
quarterly

The

first

regular

quarter

common

stockholders

close of business

record

March

The Transfer Books will

not

the

23, 1953.
be closed.

five

cents

the

Preferred

March

27,

1953,

holders of record

business

per

Stock

both

corporation,

of
K. C.

(25c)

payable

March

stock¬

Christensf.n, Treasurer

this

the close

20,

1953.

STRAUSS

President

and

Treasurer

San

NORMAN

Francisco, California

TISHMAN, President

CORPORATION
DIVIDEND

COUPON

NO.

Board

REALTY

SAMUEL

CAPITAL

CAU

the

Capital Shares of the Corporation, pay¬
March 31, 1953 to stockholders of record

the

business

March

SAMUEL
March

16,

20,

FOX,

fX FOR

1953.

Treasurer.

PHILIP MORRIS

1953.

106th

The Garlock

UTILITIES

of
Directors
has
declared
a
dividend of 15 cents per share

quarter-annual

Packing Company

FOX,

March

11, 195 3

mon

LIMITED

307

STOCK

meeting of the Board of Directors,

held this

NOTICE

ALUMINIUM

COMMON

Treasurer

COMMON DIVIDEND No.

per

day,

March

declared

was

31,
at

quarterly dividend of

stock

record

the

1953,

the

stockholders

close of

DIVIDEND

com'

payable

Company,

business March

18, 1953.
Ii. B. Pierce, Secretary

Philip Morris & Co. Ltd., Inc.
Our Institutional SHARE OWNERS

MEETING

accordance with

the

April 30th, 1953
in the

the

Company, be held
at

11:00 o'clock

morning, at the Head Office

the

Company, 21st Floor, Sun

Building, 1155 Metcalfe Street,

Series and $0,975 per

Cumulative Second

By-laws of
Thursday,

of $1.00 per

COMPANY

Meeting of the share¬
will,

Series
The

Boqrd

Electrochemical
1953

declared

ferred

Stock,

its

February

payable

only shareholders of record
close

business

March

at the

business

31st,

1953 will be entitled to receive
tice of and to vote
at

any

the

no¬

meeting

adjournment thereof.
JAMES A. DULLEA

Cumulative

March

31,

17,

ANSLEY

Hooker

March

$0.5833

Second

for

1953

10,

March

record

dividend

Series

1953,

holders

Directors

Company

resolution of the Directors,

clared

Dividend

the

of business

Pre¬

31,

clared

Colleges Benefit from Dividends
2nd

Secretary and General Counsel

Trinity College, a Philip Morris share
is

one

17th, 1953

Secretary

many

1953

April 15, 1953.
Par)

the

April 1,

1953.

meeting expenses by the

L. G. HANSON, Treasurer
March 18, 1953

the steps of the building

containing the Library and the Dean's office.

record

close of business

receipt of corporate dividends. The students
are on

payable April 15, 1953

holders

owner,

colleges, universities and

churches aided in

shown here

March

the close

regular quarterly dividend
of $0.75 per share has been de¬

1953.
WILCOX.

period

COMMON STOCK ($5.00

to stock¬

the

the 4%

payable May

holders of record

1Q,
per-

March

1953

the 3.90% Series have been de¬

Preferred Stock

from

ant to

regular quarterly dividends

ELECTROCHEMICAL

HOOKER
The Annual

CUMULATIVE PREFERRED STOCK

The

RECORD DATE

Montreal

(15c)

MOISE, Treasurer.

1953,

Louis H. Meade

Liquidating Committee

COMBUSTION ENGINEERING-

The

representing interest for the six months
period ending- March 31,
1953 on the above
mentioned
Debentures
of
General
Realty
&
Utilities
Corporation, will
be paid on March
31, 1953 at Bankers Trust Company, Successor
Trustee, 46 Wall Street, New York 15, N. Y.

and

1953.

cents

this

1953.

Phil T. Ruegger
Thomas D. Ainslie

January 20,

the

share
1,
1953

per

declared

Montreal, Quebec, Canada. Pursu¬
at

American

declared

Transfer

OTTO

Income Debentures
September 30, 1969

therefore

to present claims to the
Rector Street,

Dated:

1953,

| Payment of the amount called for by Coupon
No.

Life

Association

18.

Gal-

in¬

its

1953.

the

about
on

quarterly dividend of twenty-

25<?

the

has

Record

STREET,

Board

Mid¬

Mr.

holders of Aluminium Limited

LIQUIDATION
Metuchen

BROAD

mem¬

Cumulative
Due

the

company,
payable April 1,
holders of record at
the close

CORPORATION

MEETING

to $150,000,000.

1953.

FLEECE,

Secretary-Treasurer

1953

de¬

in the limit of indebtedness

Since

13,

ANNUAL

stock¬

GENERAL REALTY & UTILITIES

meeting early in May,

asked

the

141

which

scale

fifteen

the Corporation payable April 15,
stockholders of record at the close

12,

open.

GENERAL REALTY & UTILITIES

Plans

Co.,

20,

cents

declared,

1953,

PAYMENT

rate its shareholders, at

any

annual

March

Vice

COUPON

thirty

been

30,

CORPORATION

Street, New York

declared

business

22, New York

Directors

Co., Merrill Lynch,

Fenner

has

March

CITY INVESTING COMPANY

Refining

Streets

the regular quarterly
dividend of $1,375 per share on the outstand¬
ing 5\'z'/ Series Cumulative Preferred Stock of

previously with Carter

reported

was

substantial

West

Company

Stockholders

ness

Co.

Co.,
and

holders of record March

regular quarterly dividend of
twenty-five cents (25c) per share

associated

York

months ahead.
At

Chronicle)

J Boulevard,

The

COMPANY

April

West

been

COMMON

NOTICES

25c

Pierce,

the

some financing a few months
back, evidently has plans for re¬
turning to the new money mar¬

the

530

Exchanges.

H. Harrison &

(30cl

with

Maurice

—

GOVERNOR

COMPANY
dividend

NOTICES

Wall.

dividend

Exchange.

previously with

quarterly dividend of
Common
Stcck, payable

March

become

New

Stock

Chronicle)

Co., Inc.

and

was

did

Board

remain

good.

Atlantic

ket

PIERCE

cash

associ¬

Hough,

MANUFACTURING

CORPORATION

week

4% return basis. And

reception

cidedly

group

that

3.65%

bers
west

its

it de¬

ago,

sponsoring

offering

made

Co.,

Financial

has

Jackson

NOTICE

week

debentures

actual

NOTICES

Chronicle)

Stock

Brooklyn,
The

Lamson

West

sec¬

has

March

Hough

Calif.—Wayne

Lamson Bros.
(Special

THE

JOSE, Calif.—Garland B.

NATIONAL

1953

was

Noble

able

contemplating

afforded

Smithe

AMERICAN

A."

Maurice D. Galleher With

Sulphur & Oil Corp.
101,000

ondary operation.
Until

Miss

are

able to revise their ideas on price
right down to the wire.
A case
in point is the current offering
of $10,000,000 of 4%
debentures

and

Street, North, members of

Lazard Freres & Co.

these

along

Beil

Midwest

The

Galleher

competitive bidding
medium, is the greater degree of

the

Street.

with

route

loan;

Financial

EDWARD

the

Clifton,

Smithe has become

with

connected

now

reasons

negotiated

The

with

March

why under¬
writers prefer to do business over

through

behind.

Meeting the Change

the

COLUMBUS

DIVIDEND

payable

(Special to the Financial Chronicle)

ANGELES,

Building.

PETERSBURG, Fla.—Juan-

Fourth

Co., 523 West Sixth

CHICAGO,

One of the

(Special

Chronicle)

connected

now

with

Company,

Western

With Oscar F. Kraft Co.

Carter

Bank of America

have be¬

Rudolph Co.

Financial

JOSEPH

Manufacturing

LOS

The

DIVIDEND

stock

Joins Beil &

ated

ANGELES, Calif.—John

mar¬

change

them

bank

repay

the

anticipation."

SAN

regular

being

Perhaps some of those who are
feeling around for attractive
are

DIVIDEND
to The

Einecke

now

situations

leased

A. C. Karr Co. Adds

point out

also that "a lot of money is
built up in

King Merritt &

(Special

affiliated

Rudolph

working capital.

ita

Hogle & Co., 507 West Sixth

LOS

Decome

payable
(Special

100%

mortgage;

for

ad¬

With Paul C.

to be used

are

chattel

Street.

Allied

But they

Mass.,

J.,

Chronicle)

Street.

frankly

Co.,

McCoy

machinery and equipment

plant to

ST.

now

A. C. Karr &

observers

Boston,

repay

Co., 6253 Holly¬

ANGELES,

Nelson

J. A.

argued,

bonds.

Market

and

Joins Hogle Staff

to their lik¬

Mo.;

The net proceeds

wood Boulevard.

LOS

Hanna

affiliated

principal amount.

HOLLYWOOD, Calif.—Earl M.
McKelvey has been added to the

nas

And,

five-year

come

market

years.
are

people,

the

men

offerings

been

Willard,
of

Joins Bennett & Co.

business

willingness

Louis,

install

offer¬

Fla.—Mark

Nathaniel F. Hoxie

nan

Paul

Chronicle)

March

(Special to The Financial Chronicle)

Rather

St.

templated property additions and

ings.

took

$200,000

Inc., of New York; White &

(Special

MIAMI,
and

convertible

issuing utility will use the
proceeds
to
help
finance
con¬
betterments.

Financial

April

interest/

great

any

new

issue

The

with Frank L. Ed¬
debentures, due
1, 1958, of Arcturus Elec¬ enfield
&
Co.,
8340
Northeast
tronics, Inc. is being offered today Second
Avenue.
(March 19) by Gearhart & Otis,

6%,

The

glimmer

may

hope that things

$20,000,000 at the offering
of 26%, the operation, ac¬

New

York, N. Y.

The Commercial and Financial Chronicle...

(1252)

Thursday, March 19, 195$

trying to

BUSINESS BUZZ

brass

Senator

Washington

A -m% gA
XjL I

Behind-the-Scene Interpretation*
from the Nation's

Capita)

calls

pulls
"the

what

the

job."

snow

What they do, he said, "is pre¬
sent the Secretary with so many

•

is that the

save money,

military

big and vast proposals and keep
at him all the time

coming

\ g\W 9
M C/ 1A/

with

new

$ himself

and

ones,

Secretary

from

out

keep

busy he

the

can't dig

the

snowdrift

ifi;under which they blanket him.
The

Agriculture. This influ¬
rose
to its zenith under

WASHINGTON, D. C.—
.Strikes between V-J day and

ment of

Dec.

Henry

31, 1952 nullified, so far as
of steel was con¬

the

ence

of Agricul¬
ture. When Mr. Wallace moved
over to the Board of Economic

cerned, all the increased steel-

which U. S.
Steel installed during this pe¬
riod, it was disclosed in the
company's annual report.
capacity

making

the

immediate

very

the

War

Safe

pres¬

World

the

Make

Douis H. Bean,

million

^
'

Bean's drive and naturally the
Truman Administration was not
long in adopting the cry as its

followed

There

the

notori¬

"Spence bill," Administra¬

ous

tion-written, of 1949. Under this
bill if private industry did not
boost basic production capacity

.for steel

other

and

mate-

raw

xials, the government would do

the

Bean

job.
bill

Spence
to

course,

Only

get

former

Spence

failed,

first

Canada's

Pearson,

in the Defense Depart-

."•./

;

;■..

■

V./'/ /' r

•

re-

the

to the United Nations

didate for Secretary General, is
rated in governmental

this

capital

American.

Parliament

vote

publicly

and

the

anti-

criticized

has

criticism

inferred

Eisenhower

Administration's bent

foreign

whilst

ignoring

tremendous several hundreds of

Brent

millions of dollars the U. S. has

of the House

the

among

spent

tougher "escape clause" to

bill it enacts extending the
Reciprocal
Trade Agreements

buying
farm

Canadian

donating

and

commodities

any

Former

introduce

Chairman

this

bill.

Burnet

so-called

these

provisions

are

million

ac¬

authorizations

bill will have easy passage, un¬

then

less

White

the

against

the

reciprocal

whole

the

charged,

CIO

the

and

ministration

Truman

failed

Ad¬

the

do,

House
pass

Customs

Act

and

Reciprocal

Korean War succeeded in doing.
There is now installed an an¬

Act

nual

steel

tons.

Trade

the

Agreements

ments."

well

Simplification

extension

again the

Steel

capacity

120

million

brings home

consequences

increased
vided

producing

excess

capacity merely

"elbow

room"

the

—

pro¬

the

for

production-expensive

steel

strikes.

for

increased

ing capacity,
the

proposed

the

Administration. It

Truman

is explained

have

enacted

bodily important
proposed

In¬

Organization,
to which Congress is hostile.

steel-mak¬

still

employed "

States

United

Govern¬

ment, despite the advent of

Upon the succession
T. Benson

Ezra

Secretary of Agri¬
culture, Mr. Benson decided he
an

further

use

"Assistant

tary of
which

Furthermore, in the form this

for Mr. Bean

the

Agriculture,"
Mr.

Bean

Charles Brannan

Secre¬

the

had

title
when

the Secre¬

was

Mr.

Bean

raised

when

passed

him,

rights

word

and

his

Chief

demanded

ndjw employs
same

"consultant" in

of the

was

"civijl servant."

So the department
Bean

cjain to the

this

the

salary

the

office

Bureau

Agricultural Economics.
Douis

Bean,

joined the staff of the
as

economist,"

"junior
was

BAE

literally

Mr. Bean's influence

civil
wore

rose

Me high councils of the Depart¬

conservative.

The

both

Senator

said

has

ly riled

pigeon-hole,

coming
The

value

into

these

the

theory

that it cost

$10

this

was

small

transac¬

However,

immediately

after

the House passed the bill, firms

prepared to set
business

up a

New

the

Informally,
the

mail order

York, permit¬

What
until

happened

the

Military

subcommittee

Committee

such

the

caused

the

The

issued

and

scathing

ator's

military

Public

their

whose

on.

the

that

said

a new

job

Services'

was

demands

stopped dead—for
being any way—an ad¬
billion of military

ditional $4.5

subcom¬

public works the Pentagon
demanding.

38th

East

(quantity prices

Street,.

Y.—Paper 25c

request).

Outstanding Books

Relations,

Industrial

1952—Selected

ences—Industrial

Refer¬

Relations

Sec—

tion, Princeton University, Prince¬

ton, N. J.—Paper—20c.

United

Yearbook,

Nations

1952

Publication

—•

No.

1952, XVII. 1—Columbia Univer¬
sity Press, 2960 Broadway, Newi
York 27, N. Y.—Cloth—$7.50.
The

Exchange

Magazine

—

Monthly magazine issued

by the
New York Stock Exchange —$1
per
year — Department
C, TheExchange Magazine, 20 Broad
Street, New York 5, N. Y.

was

United

States

curities

and

Review

the

1952

Government

Money
and

Pull the

to the Ap¬
later

What

Committees

has

Se¬

Markets:

Outlook for

1953—Bankers Trust Company, 16
Wall

Street, New York 15, N. Y.

—Paper.
When

Retire

—

Pamphlet

—

Pension Trust Department, Chem¬
ical Bank & Trust
Company, 30
Broad

Street, New York 15, N. Y%

—Paper.

Snow Job

Secretary of Defense
when he is

got to realize,

TRADING MARKETS

National

bill

Customs

forth¬

Company

Riverside Cement

Admin¬

George E. Keith Pfds.

FOREIGN SECURITIES

Polaroid

Co. Pfds.

Gorton Pew Fisheries

Firm Trading Markets

Cheney Bigelow Wire
William Wise Pfd.

monkey busi¬

passage

his

has

the time

is up

military

military public works. This

official

izing the construction of "mili¬
tary public works," i.e., naval
bases, air bases, cantonments,
propriations

Long

exclusive

review
for

mittee prepares the bill author¬

and

the

Sen¬

Committee forced the Pentagon
to take an Assistant Secretary

re¬

brass

Works

papers,

economies

the

judgment

Senator

Senate

them.

Washington
local

matters.

which has

report

16,

Works

of the defense in¬

some

with

Senator proposed, and the

Services.

Armed

report

the

has

ly to the objective of simplify¬
ing customs practices and pro¬
If

deprecating
up

in this capacity that they

was

gang

Public

stories

correspondents

Morse and Long were members

Simplification bill limited strict¬

ing"

both

York

United Cape Cod Cranberry

Eisenhower

cedures, "with

that

was

Congress,

new

New

officials have been "plant¬

gon

waste in the construc¬

gross

since

participated, is that the Penta¬

they

thought

foreign

Congress

istration to draft

evidences

tion of military installations.

to collect tariff

tions than the duties paid.

the

discovered of what they

happened

Osborne—Public Affairs.

Committee,

Statistical

what

that

in which he and Senator Morse

stallations

ness."

lose from the expected cuts.

"liberal," got genuine¬

cent

items

asked

was

papers,

from the office
Senator, disclos¬

Democracy Begins in the Home
—Ernest

Department

his

around

Senator

still

was

three-star Gen¬

carry

and

report,

Russell Long and Wayne Morse,

all

duties

its

ing just how each state would

never

roaring

However,

A. & G. J. Caldwell

C*HL Marks & po- INC.

is expected

to be easy.

Wiley Bickford Sweet
Rogers Corp.

Foreign Securities Specialists

agricultural

servant. As the New Deal

rated

son

Huey Long, and

proposed to exempt from duty,

mail.

the

going
of

Long

been

toured

coming, its

when

has

Senate

ordering
goods by mail.

press*

the late

into

ting

tary.

Senator

bill passed the House and went

less

tration.

eral

Charles E. Wilson.

in Congress that this bill would

ternational Trade

allegedly Republican Adminis-^

Congress will refuse again to
the Customs Simplification

pass

bill

completed

another

Bean, who fathered this

drive

Mr.

crippling amend¬

provisions of the

U. S. Still Employs Bean

Mr.

"without

Defense

official, with

Senator Long has some advice
for the new Defense Secretary,

Congress to

persuade

was

published

secret

The Army and Mr. Long

Canada, like Britain, is using
all its drag to get the White

power

Senator

publicly
that even before

later,

while the information

to author the bill, even "by re¬

combined

Defense.

subcommittee

and

agreements program.

projects

new

Louisiana

discovered

Reed bill should
the key committees

the

sour

the

billion

for

requested

What

stand

House

Asks For New Bill

the

cepted by the White House, the

Maybank (D., S. C.) of the Sen¬

What

projects.

of the subcom¬

mittee, Senator Long last year

fense Production Act.

ate Banking committee, refused

quest."

Chairman

managed to knock off about $700

"cheese amendment" to the De¬

the

for authroized

tions

the

the actual appropria¬

to propose

"mandatory peril point"

a
a

Acts.

Pearson

coincide with
views.) *

own

"Boy! Was that last income tax a humdinger!"

circles in

strongly

"Chronicle's"

can¬

against

-on,

ment.

and may or may not

"retaliation"

1923

economy

;

pretation from the nation's Capital

being offered

enough

keep

(Secretary
of State for External Affairs),

later

sergeants

letters,

fleet the "behind the scene" inter¬

Minister"

Europe is pressing for Canadian

bis

however, that the

and

reporting
extravagance, and
cheering him on in his drive for

Bill leaders, no particular radi¬
cal
himself, was complaisant

at¬

■

base.

Chairman

(D., Ky.)

Banking Committee,

bad

then/the

and-

;

affairs.

The

the

and?

(This column is intended to

Lester

"Foreign

about

surrounded

slave,

him

waste

signing letters, that of

mili¬

that

he is, is to become-

says,

writing

occasionally

Pearson Rated Unfriendly

balance..

who is supposedly

awn.

„

;

the

Long

•

States. The CIO took up-Mr.

first

corporals

title

tary of Agriculture.

•

;

Mr.

do,

can

him. He-

head

finds

get

mountain,

torney,for the military."

Mr.

"economic adviser" to the Secre¬

annual steelof the United

tons, the

"^making capacity

recognized. Mr. Bran-

used

than 120

strive to boost to

which

cannot

the

pile

the-

Secretary

kept off

service

captured

Secretary.
which

title

did not recognize the

nan

jfloyee of the Department - of
Agriculture, was credited with
feeing the sire of the Fair Deal's

the

was

Brannan

$12,000-em-

Assistant

This

they

the civilian

all

partment of Agriculture. He was

just

under

constantly

tary

explained

civilian
he

from

Bureau,

end,"

that

work

to, the

over

1943 to
1947, before returning to his old
stamping grounds at the De¬

Communism.

for

time,

short

moved

Bean

Budget

ent, but on a perhaps suspended
move in the era which followed

there

Staying
Mr.

the

finds
out

in¬

projects. They always

Senator,

went along.

chance to

merits of

him under.

"In

Warfare, Mr. Bean in due course

Thereby hangs quite a story,
and the story
bears not only
upon

the

when

Wallace,

dividual
snow

latter was Secretary

output

Secretary has
to study the

try

Reciprocal Trade
Have

Will

LERNER & CO.

50 Broad Street... New Yort 4, N. Y.

Amendments

Investment Securities

Tel: HAnover 2-0050

Barring
pressure

the

from

most
the

intense

Eisenhower

Administration*- Congress ..will

10 Post Office Square,

Teletype NY 1-971
\

Boston 9,Mass.

Telephone
'

*4*0

mm'tmm

'mm

m m

m~ mm

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BS 69

;

Full text of Commercial and Financial Chronicle : March 19, 1953, Vol. 177, No. 5204

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