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MICHIGAN
OF
1953
MAR 27
Chemical
Industry Featured In This Issue
Reg. XJ. 8
New York 7,
Number 5206
Volume 177
EDITORIAL
We See It
politician regards
as
Dr.
in
for
"
no
smaller
a
great for the Truman Administration to bear.
Greater efficiency and better management was
at that time in effect defined as curtailment of
service.
One
was
brought to wonder what these poli¬
ticians would have thought of an
from
•
Statistics of
,
one
The
economists"
announcement
an
in order
the
the
or so
of
Income,
Federal
of
based
To be
insufficient
on
by
which
fix
wages
mergers
The
every
War II.
small
MARKET COLUMN—Don't miss "THE MARKET
stock
new
.
.
market column, which appears on page
pre probably some of the more important
^yents in any period. While the actual fate
and interest in mergers has somewhat lessened during the
past few years, such action will continue to be one of
the more important aspects of business life in the Unj|ed
States, rising and falling in frequency with the ups pind
Chemjjcal
Continued
34
.
on page
State and
;
1
WESTERN
-
43
AND YOU," our
38.
Chemical
-I*:- Bank
Rudolf M. Cziner
rela¬
business
controversies.
page
and
tively insignificant, while others, like the above men¬
tioned and the merger of Squibb & Sons into Mathieson
complete and the more carefully weighted it
on
since
Many of
these mergers are
Dr. Robert S. Aries
mechanically.
Continued
occur
year
the end of World
"scientific," the consumer price index must cover
more
and ac¬
quisitions
sam¬
everything the consumer buys, each item weighted ac¬
cording to the amount of money the average consumer
(B p^rf abstractipp) spends on it. The more "exact" the
in<£ex |s, or wants to be, the more often it? base has to
be revised in order to keep up with the people's spend¬
ing habits, which opens the door to endless
such
800
and
index number. This be¬
an
to
Govern-
that between 700
its
spends
income
average
our
The
estimates
ment
pling. Then they check daily the aver¬
age prices in the average locality of
this "market basket," and average
Palyi
rule
in
ceptance
economy.
them into
the
comes
which
,
has had wide ac¬
ments
money,
Or. Melchior
business
a
practice
estimates of
gross or net, are'
vague
being
and
it seems to us—that the
Continued on page 45
NEW STOCK
inherently
living") index. Field statisticians fig¬
ure out how a family of average size
ardently to be hoped—and there is
hope,
the
use
Some of
;
enterprises in that field—and to cap the
climax would put <x>mpeting private enterprises
out of feusipess in order to help the city put qf sl
financial hpie of its owp digging!
to
The recent merging of Willy-Overl$pd
into Kaiser, and the absorption of the American Broad¬
casting Company by Paramount are only two examples
(on a large and
important scale)
elevated to scientific instru¬
by which to direct centrally
economic policies.
Take the consumer price ("cost-of-
already severely limited transit service
to reduce the operating deficit of city
It is most
t
is nothing new.
controversial figures, like
most
National
owned
reason
inclined to
are
data for their own purposes.
politicians in New York City came up
other day with the proposal to reduce dras¬
tically
i
operating companies by other fupns
The acquisition of
well aware
the layman
ignores them and takes the figures at face value. What
is worse, politicians and "political
certain
the
mergers are
broad scope necessarily operate on more
a
less arbitrary assumptions. The expert is
of the pitfalls involved. The danger is that
discontinuance of passenger service
four o'clock in the afternoon! Of course,
need not ponder such a question very long.
answer
is not difficult to conjecture. Yet
by
say,
field. Finds chief
in the chemical process
diversification and integration,
along with better and cheaper marketing facilities. Citef
a few examples of "de-merging" in chemical industrief
through divestment of subsidiaries. . \
advantages of
or
nishing current only at certain hours of the day
or certain days of the week! Or if a railroad de¬
termined to be more considerate of the public's
after,
i
,
it intended to
purse
mergers occur
justification whatsoever, and merely provides a fake
justification for labor monopolistic practices.
electric light and power company that
save its customers money by fur¬
an
continued trend
despite opposition of Federal Trade
Commission, reveal that about one-third of all industrial
in industrial mergers
consumer
on
inflating,
for greater economy^ and in particular
postal deficit, became somewhat too
pressure
Economists, New York, N. Y.
Consulting Engineers &
Messrs. Aries and Cziner, pointing out
price index is automatically selfCalls escalator a statistical illusion and an
economic misfit, and says the "productivity factor" in
these.contracts is loaded with vicious fallacies and has
based
the step taken by the Fed¬
Office Department some time ago when
eral'Post
Palyi, after calling attention to pitfalls in using
scope statistics," on which "escalator clauses"
labor contracts are based, contends an escalator clause
"broad
an
have not forgotten
*
RUDOLF M. CZINER
Associates
R. S. Aries &
distressing. : Those who follow such things with
care
Copy
Chemical Industries
By ROBERT S. ARIES and
By MELCHIOR PALYI
altogether new or unprece¬
experience, of course, but it is nonetheless
omy." It is not
a
Merger Trend in the
Productivity Racket
"econ¬
Cents
Price 40
N. Y., Thursday, March 26, 1953
iThe American public is getting a distressing
reminder of what the
dented
Pat. Office
Escalators and the
As
BUSINESS ADMINISTRATION
LIBRARY
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Correspondents in all
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in New York City
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Wires
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Dean Witter & Co.
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THE NATIONAL CITY BANK
Street, New York, N. Y.
Members of
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Members of All
OF NEW YORK
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1915
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Bond Dept. Teletype:
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MEMBERS NEW YORK
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Boston
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(4k
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other
111 Broadway,
New York 3, N. Y,
^
York Stock Exchange
Principal Exchanges
Members New
(orpokatioti
York Stock Exchange
Members American Stock Exchange
IRAHAUPT&CO.
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N. Y. 6
Teletype NY 1-27,08
Telephone:
Enterprise 18£Q
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-ewe
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'
2
The Commercial
(1310)
and
This
The
WE POSITION and
IN
TRADE
Forum
Security I Like Best
A continuous forum in which, each week,
a different group of experts
field from all sections of the country
participate and give their reasons for favoring a particular security.
Products
Maize
American
Products
Public
Central
(The articles contained in this forum
Utility
Colorado Interstate Gas
Lion
Plan, Pfd.
Oil
Following
Corporation
Puget Sound Power & Light
Southern Production
hardly be said to be
gain counter. At the
not
t
o
i
r
Teletype NY 1-583
f
o
will
Rights & Scrip
six
Collins
J.
Charles
tech¬
a
nature
against
which
considerable
exists
as
could
reward
holding
selected
of
longer-range stand¬
a
point.
ffr pONNELL & CO.
Members
qualify, at this point, under
advantage, and at
time,
same
to
Exchange
short-range
American
Exchange
dictates the selection
5
special
risk
to
minimum,
a
of
situation, such
(1)
some
Climax
as
2-7815
Molybdenum, where earnings
are
the
in¬
almost
certain
for
crease
to
be
several
a
on
period
year
because of business already nego¬
Trading Interest In
tiated,
(2)
or
derlying
Furniture
lieved
Bassett Furniture Industries
Commonwealth Natural Gas
be
tablish
a
thus
and
es¬
earnings peak. Our
choice falls in
the
the
latter
classifi¬
so-called
growth
Lynchburg, Va.
TWX LY 77
outlined
in
the
first paragraph above, is Lion Oil.
Lion Oil is
unit,
with
from
the
to
fully-integrated oil
operations extending
production of crude oil
of
gasoline
and
mar¬
other
petroleum products. The company
Air
Conditioning
opment of
1906
Reserves
COMPRESSORS
with
number
a
respected
in the business with
record
an
of continuous
names
enviable
profitable
operations. Dividends paid
year
since 1946.
as
brought in
Large, growing
barrels
of
but,
companies,
a
50%
080
well,
100%
this
for
report.
our
stock
invite
you
under¬
to
send
the
Member National Association
of Securities
Dealers, Inc.
55 William
St,, New York 5
Phone B0 9-5242
Tele: NY 1-3390
acres
and
interest
The
program
and
Assistant
New
the
United
States
In
Mobile, Ala.
Central & Southwest
Corp.
Chicago, III.
So. Carolina Elec. & Gas
Foote Mineral
short-term
sense
could
anything
mean
company
has
con¬
efficiency
from
also
improvements
a
has
to
asphalt specialty plant, which
a wide
range of prod¬
ucts, including rust preventatives,
produces
anhydrous ammonia, nitro¬
solutions, ammonium nitrate,
marily
Missouri Pacific R. R.
I
marketed pri¬
fertilizers.
products
market, four
a
specific
of
&
operations have
very satisfactory venture
for the company.
at
plant
now
has under
million
chemical
It
to
into
come
the
about
which
Orleans,
New
scheduled
tion
$31
a
of
.3,3v JL m
Donald
1954.
issues
are
available
to
bills,
certificates
Moffat
L.
notes,
maturing
all
offering
each
years,
and
within
five
distinct
a
Like
rlts; other chemical plants,
advantage to the investor that has
this
unit, will utilize natural gas
an
base
material.
Orleans
plant,
the
as
New
When
greatly increase capacity, is
pleted, the
company
com¬
will be about
one-half in oil, one-half in
It
the
funds
chem¬
below
cals
ties
and
company,
should materially benefit from the
prospective
expanding long-term
demand for agricultural chemicals.
Capitalization,
financing of
ects
which
the expansion proj¬
under
now
includes
consists
way,
$38.8 million of funded debt
of
and
$28
estimated
at
of the Dec. 31,
as
end.
Sales of $7.6
had
climbed
to
around
1952 year-
million in
1929
million
$10.6
in
Reserve
the
United
1952, exceeded the $86.5 mil¬
for
sharp change in the
postwar profit picture. Thus earn¬
ings per share, which averaged
39
a
for
cents
the
years
averaged $4.74 for the
51.
a
Earnings for
1938-40,
Bank
States
each week.
these
smaller
a
the
Nineteen
seven
yielding
the
at
a
time.
with
to
maturing
of
This
they
funds
$5.56;
and
par,
are
banks
to
for
of short-term
To
say
day
one
amounts
for 30 days $166.67;
to
for
60
mature
within
a
operation,
improve¬
ment.
These
$5 million improvement to the El
from its
current
prices
of
37,Lion
common, reflecting the lower
earnings of 1952, is off some 21%
tnere
some
market
1.74%
securities
unique
1952
high of 46y4. While
is nothing in the immediate
are
respects. There
varying
for
for Aug.
Oil
Company
Common Stock
Bought—Sold—Quoted
Prospectus
on
request
Gordon Graves & Co.
30
Broad
Street, New York 4
Telephone
Teletype
WHitehall 3-2340
NY 1-809
410 Pan American
Miami
Bank
Bldg.
32, Florida
June
in
1,
yield
1953,
15, 1953, and
are
a
a
pres¬
from
1.86%
2.02%
on
Over-the-Counter
Quotation Services
for 40 Years
those
maturing Feb. 15, 1954. Two
of the issues are longer than bills,
yet the return is just about the
same.
Oil
At
de¬
and
year,
Earnings are expected to
in 1953, and once the
into
the
Chart
not
slightly different advant¬
a
traded.
material
for
for
if
Certificates of Indebtedness:
(2)
ently three issues of these in the
comes
Ask
full
Commonwealth
$333.33, and for the full 91
crude
show
indicates
illustrate,
Lion's
plant
it
today.
back in
at a rate of
age.
should
what
$10
Money
balances,
in
El Dorado expansion is completed
the
New
Orleans
chemical
see
Send
paid
dustry, including refineries of
and
to
319.
pur¬
are
cash
profitably.
days 8505.56.
higher
want
the
other companies to which some of
be
a
market
future.
C.
dis¬
a
maturity. They
advantage
were
com¬
is
"dividend," a chart of various
cycles, projected to 1990.
1944, has worked
amazingly well for eight years. You will
as
stock
return
in
are
commercial
days
production
Cycles
21, N. Y.
days all
changes
temporary
take
offer
oil
of
York
choice
a
market. These sell at
1951.
and
New
This projection, made in
De¬
State funds, or anyone that wishes
refinery strike in the oil in¬
division
Also,
Street,
of
adjust cash positions, corporations
They
chemical
77th
E.
fairly generous return
present
fluctuates
by
pany's
the
strike in the
a
S
to
Study
available
are
days to 91
2.00%
fifty-two earnings
depressed by
the
13-week
a
market
open
within
$3.30
in
Treasury
Consequently
were
capitalization
for
year
9^
behalf
on
securities
$1CO,000 invested,
on
a
ad¬
within
covers
1950-
1952
$10
cycle, and at present is continuous
years
share, comparing with $4.37
few
a
mature
This
partment.
in
value
book
of
who contribute
persons
pertinent features
some
are
generally
eral
represented by 3,090,875 shares of
million
to
Foundation
days, and are offered weekly by
competitive bidding by the Fed¬
of
$83
Sent
of
lighted with first report.
light
special offering, these securi¬
a
common
around
on
(1) Treasury Bills: Unless there
is
oil
high
by Edward R, Dewey
(co-author Cycles—The Science
Prediction)
concerning them.
probably has the largest
any
to
WHAT'S AHEAD ?
vantages of each type issue, listed
proportional stake in petrochemi¬
of
limit
investment.
for
Just
will
which
time
approximate
New York 7
Tel. NY 1-1932
of
indebtedness,
bonds,
Security Dealers Assn.
Ten reports a year
types
namely,
Y.
Dlgby 9-1550
investors,
is
produc¬
middle
/■'%
N.
Broadway
e
Lion, via
Chemical
erection
h
short-term
in their distribution.
a
150
States
Treasury
rate
proved
t
n
Since sales
marketed
advantage, occupies
favorable competitive advantage
a
Members
in¬
Tel.
United
are
in the immediate area,
GERSTEN & FRENKEL
f
particular
volved.
sulphate, and sulphu¬
as
these
asphalt paint and plastic cement.
Further expansion of
refinery fa¬
cilities will be achieved when the
refinery is completed in
o
investor
with
320
achieved
problems
made
an
in
chemical
clude
of
offices
more
its
are
branch
our
as
MOFFAT
the
ric acid, which
to
com¬
product lines, ineae cnemicais in¬
ammonium
wires
Obligations
general
a
investment
NY 1-1557
Orleans, La. - Birmingham, Ala,
Direct
Government
Short-Term
Exchange
St., New York 4, N. Y.
Vice-President,
favorites
sur¬
has
diversify
Stock
Stock Exchange
•
C. F. Childs and Co.,
its increased crude production, and
its bigger refinery runs, all have
refinery and the addition of
Dorado
has invested
York
American
dis¬
seem
from
L.
below
an
DE PASQUALE CO.
DONALD
chased
discovery of
major
significance. The postwar develop¬
Over-all
discussed above.
off at par upon
the
benefited
attractive
pany's entry into petrochemicals,
approximately $3.00.
and
tinctly
was
outright in early
New
Members
25 Broad
pany's longer-range viewpoint
lion chalked up in 1951. The com¬
ment
believe
Members
material price
a
income yield and
as
close balance between crude pro¬
duction and refinery runs.
We
Steiner, Rouse & Co.
run-up in the shares, they seem
reasonably priced on the indicated
the
1946,
Quoted
HAnover 2-0700
we
backlog of orders. Common stock
valued
OppenOppenheimer,
&
Co., New
City (Page 38).
picture to suggest
meaning
offsetting the well, plus 2,owned outright in the
siders
York
count,
acres
area.
Broeck
for
interest with CON¬
the
additional
plant
The
Partner,
Government
a
Bought—Sold
the
in
from
dates
leased
heimer,
money
discovery well
TINENTAL OIL in 640
acres
Lion
Moffat,
$4 Non-Cumu¬
Vanden
1937, to $54.2 million in 1947 and,
Denver-Julesburg Basin,
producing 1,000 barrels a day of
gravity oil on test. Lion
a
is
It
Ohio
&
at
good
general
every
million
estimated
the
rounding
most
such
believe this materially understates
the case. Just recently the com¬
shares
GAS COMPRESSORS
been
90
in
REFRIGERATION
have
around
pany
One of the
areas,
Williston Basin, returns from
which are yet to be fully tested.
AIR CONDITIONING
AIR
and has hold¬
reserves
in important
in the devel¬
the
BRUNNER
SINCE
has been aggressive
ings
Stock
venture
a
refining, transporting and
keting
interest.
participation
when
icals.
Among such issues that
have current appeal, subject to the
overall limitation
STRADER,TAYLOR&CO.,lnc
its
investor
of the
course
stock.
Life Insurance Co. of Va.
LD 39
be¬
is apt to
cycle
new
—
un¬
is
tr£nd
upwards
business
cation
Dan River Mills
stock*whose
that is the usual
one
next
Camp Manufacturing
a
earnings
to
in
refinery of
record would at¬
and
Term
-
L.
lative Pfd.—Winfried H.
5.4%
Oil engaged only
This
the
reduce
New York Stock
YORK
will
base for the production
a
producing
freight
the long-range
the
facilities
new
higher octane fuels.
gen
nical
shares from
the
establish
ties
price correction partly of
To
margins,
Short
from
a
one-day maturity to a
than five-year maturity, depending on
the needs and
$11 million to broaden these facili¬
to
the
determination. In addi¬
raising refinery profits
to
company
substantial
attend
Since 1917
L
Baltimore
such as
and will
then pur¬
1948 for
$10.5 million, since which time the
say,
—
tion
chased
vulnerability
to
American
oils,
burning
product
plant.
months—
12
Specialists in
NEW
and
items,
Government
Vice-President, C.F. Childs
Co., Chicago 111. (Page 2).
&
petrochemical field, however,
which lends particular attraction.
short-
within
REctor
profitable
company's
recognize,
therefore,
range
Tel.
fuel
tract
t
a
shares
Exchange
Broadway, New York 5
BROADWAY,
1953.
less
petroleum,
1 ly
a
c
S.
Louisiana Securities
Asst.
increase
50%
a
gasoline yields at the expense
the
his-
purchaser
that
120
of
quarter
permit
Were Lion
levels. Today's
1920
Stock
will
Alabama &
J.
Investment
Obligations—Donald
in
of
are
speaking,
Associate Member
BArclay 7-5660
time
same
extravagant
Corporation
Stock
the bar¬
on
being dis¬
counted,
American
U.
of
as¬
values
set
New York Hanseatic
can
earnings,
yields and
Taylor Oil & Gas
three and one-half
a
upturn in prices, stocks
year
120
nor
permit greater flexibility in end-
Natural Gas & Oil
Established
third
the
about
Chairman, Investment Counsel, Inc.
President, Investment Letters, Inc.
Detroit 26, Mich.
he,
to
Charles
Collins,
Counsel,
Inc.; President, Investment Let¬
ters, Inc., Detroit, Mich.
(Page 2).
sell the securities discussed.)
to
This
Electrol Inc.
Polaroid
offer
as an
CHARLES J. COLLINS
Copeland Refrigeration
Morris
they to be regarded,
are
intended
not
are
and
Selections
—
Chairman,
in the investment and advisory
Air
Oil
26, 1953
Week's
Participants
Their
Lion
Financial Chronicle..
.Thursday, March
a
The
reason
hedge against
term rates.
a
being they offer
change in short-
National Quotation Bureau
Incorporated
Also, at present prices
Established 1913
the
premium is small, and these
issues may have a potential
right
Continued
on
page
38
46 Front Street
CHICAGO
New York 4, N.Y.
SAN
FRANCISCO
Number 5206
Volume 177
.The Commercial and Financial Chronicle
..
(1311)
INDEX
Plastics Invade Structural
Page
Escalators and the Productivity Racket—Melchior Palyi
AMD COMPANY
Cover
The New Economic Climate in Washington
By FRANK K. SCHOENFELD*
—George
Vice-President
Technical
Chemical Company
Inflation
B.
Bookman.,
INVESTMENT CO. OF AMER.
4
Deflation Ahead Now?—A.
or
Wilfred
May...
5
Stock
An Industrial Look at Atomic Power
Describing
plastics as "most versatile structural materials
known/' Dr. Schoenfeld reveals uses of plastics in building
industry. Says speed-up is needed in plastic fabrication tech¬
nique, as well as a high degree of intelligence in introducing
plastics into new fields. Reviews Canada's economic progress.
Nothing
trial
is
scene
engineer
the
in
indus¬
world's
fascinating to
as
an
the spectacular prog¬
as
of Canada. Here in the third
ress
rubbers, promises to be
tive
union.
The
polystyrenes
and
vinyls
Toward Stable Prosperity in a Free World—David Rockefeller
Reconciling
The Basis for Standby
the
and
growing
grandchildren —
of
modifications of polyvinyl chloride
and polystyrene, have interesting
the
area,
free
a
of 'the
building
are
greatest
vision
and
energy
people
nations
one
of
our
times.
These
characteristics
tionizing
Blessed
with
natural
resources
Of immense but largely uncharted
is
much
population
polyesters.
in
the
world
to¬
day. It is destined to become
Oven
more
powerful,
country.
perous
pros¬
more
An
an
interesting
side-light is that the high average
intelligence of the people causes
considerable
group
industrial power. Everyone
to be in the show sharing
array
world
seems
in the excitment and
When
tistics
I
the
of
United
Canada,
I
popular
song
Can
Do
economic sta¬
compare
reminded
am
the
of
industrial
The
growth
the
last
dozen years. Yet Canada has per¬
centagewise bettered almost
United
States
growth statistic.
the last decade Canada has
both
its
every
In
tripled
import and export trade.
Historically the United States has
always supplied about two-thirds
Canada's
of
last
imports. Now in the
decade
the States
third
Canada's
have grown
two-thirds
to
Canadian
Canada
to
the
total
As
industrial
an
growing integra¬
a
of the economies
of
two
our
nations. This has brought and will
continue to bring many rewards to
our
countries. Let
continue
to
go
mutually
as
Let
be
us
partner
the
on
to
we
strong
benefits of this economic partner¬
ship, unique
the nations of
among
less
The
Second
theme
of
"Plastic's
Second
second
comes
when
fairly well
reasonably
of the
is
Honeymoon."
honeymoons, it
the
grown.
children
are
The parents
is
children
are
much
and
prosperous
conversation
the
well
-
meeting
about
how
doing.
are
Plastic's
oldest
child, the phenolies, shows promise of broaden¬
ing its usefulness into several new
fields.
"An
Its
recent
marriage
with
address
by
Dr.
Schoenfeld
at
(meeting of the Society of Plastics In¬
dustry of Canada, Niagara Falls, Ont.,
March
II,
J.
28
with
or
comfort.
plastics
dustry
of
base
the
as
plants for Spring—Ira U. Cobleigh
the
newest
raw
materials for
and
leather
aids,
Issued
even
,
of
Tax
Exemption
Private
for
Survey Indicates End of Farm Land Boom____
Nadler—
33
33
Former Truman Adviser Warns of "Boom's" End
34
the
rate
Membership
___:
Security
vs.
glass, light metals,
amics, and iron and steel.
As We
cer¬
Bank
(Boxed)
Plastic
It
See
and
Forecasts
the
of
plastic
caster
a
high
growth
often
that
in
are
the
of
Manchester, N. H.
•
Private Wire to
plastic
sales
materials that
such
are
even
a
56
Indications of
Mutual
NSTA
tripling
a
by
ment
ume
can
Our
replace
into
intro¬
are
Activity
47
42
_—
Reporter's
Prospective
percentage replace¬
plastics
13
Funds
Notes
Public
—
Security
55
39
Offerings—__—
51
35
_.
24
Salesman's
Securities
Now
The Market
in
Corner.
34
___:
Registration
.____
48
and You—By
fields; how care¬
ful our industry is in maintaining
product quality; how well our
Wallace Streete (successor to
"Tomorrow's Markets, Walter Whyte Says")___
38
The Security I Like Best
i
2
2
engineers
The State of Trade and Industry
ists
new
design
modify
and
properties;
words, how well
business
limitation
of
we
plastics
on
the
in
other
operate this
is
the
degree
Continued
chem¬
our
Tomorrow's Markets
of
page
ST., NEW YORK 4, N. Y.
(Walter Whyte
Nashville '
•
Glens Falls
•
Schenectady
CROW ELL,
•
^Worcester
& CO.
Says)
<
Washington and You
Saving^
f
56
Discontinued. See "The Market
our
The
Twice
1
Weekly
Drapers' Gardens, London,
land, c/o Edwards & Smith.
Patent
Office
.
.
Reentered
Park Place,
25
COMPANY, Publishers
DANA
New York
7,
N. Y.'
ary
25,
York,
N.
D.
WILLIAM
Thursday, March
Every Thursday
26,
(general
1953
news
and
records,
corporation
and
Other
Chicago
city
news,
Offices:
3.
HI.
135
news,
bank
S.
Pan-American
Union,
in
Dominion
Canada,
Other
clearings,
etc.).
of
Countries,
$52.00
Other
Bank
and
per
$48.00
per
year;
per
of
La
STate
Salle
St.,
2-06131:
the
In New York funds
of
Inc.
Cotton
other
Trade
Exchange
Exchanges
'it, f
fluctuations
In
of exchange, remittances for for¬
eign subscriptions and advertisements must
be made
Exchange
Exchange
Exchange,
Orleans
And
Exchange
Cotton
Board
Chicago
New
Stock '
Stock
N. Y. Cotton Exchange
Record — Monthly,
(Foreign postage extra.)
of
York
New
year.
Publications
account
American
year.
Quotation
$30.00 per year.
Note—On
$45.00
York
New
Bldg.
NEW YORK 4, N. Y.
CHICAGO
DETROIT
the rate
South
(Telephone
Subscriptions in United States,
U.
Possessions, Territories and Members
ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
state
H. Hentz & Co,
Commodity
Subscription Rates
SEIBERT, President
1856
Members
second-class matter Febru¬
as
1879/
SEIBERT, Editor & Publisher
DANA
Eng¬
1942, at the post office at New
Y., under the Act of March 8,
•REctor 2-9570 to 9576
HERBERT
C.,
E.
Copyright 1953 by William B. Dana
Company
FINANCIAL CHRONICLE
S.
You," by Wallace
Established
COMMERCIAL and
U.
and
Page 38.
on
18
TELETYPE N. Y. 1-5
•
Chicago
•
^
5
main
Streete
on
...
Exchange PL, N. Y. S
5
1-
Railroad Securities
-
40
Teletype NY 1-1825 & NY 1-1820
37
Securities
Utility
HA 2-0270
22
May
Report
Security
-
Singer, Bean
& MACKIE, Inc.
27
Bargeroh
Our Reporter on Governments..
high tonnage items that
intelligently
Current Business
8
___
Abroad"
Investment
Observations—A. Wilfred
by plastics gives large vol¬
duced
9
8
News About Banks and Bankers
1960.
plastic growth figures. How
't '*
■
36
___
—
From Washington Ahead of the News—Carlisle
conserva¬
volume
plastics
small
LOS ANGELES, CALIFORNIA
—_________
Securities
Einzig—"British
so
fore¬
New York Stock Exchange
Boston
U. S. Airlines
16
—_—
___
*
arbitrarily cuts his figures
large factor. Even
t
and Light
Cover
Stocks
Bookshelf.—
Coming Events in Investment Field
._v
Dealer-Broker Investment Recommendations
Growth
future
industry
fantastically
TELEPHONE HAnover 24300
•
i
V
(Editorial)
Insurance
Man's
Canadian
Forecasts of
Industry
Sulphur
Lear, Inc.
43
_
-
Spencer Trask & Co.
Albany
Standard
43
___.
Puget Sound Power
Business
Fantastically High
Sterling Steel
36
—
Regular Features
WILLIAM B.
BROAD
Firth
with
lumber,
i
Cinerama, Inc.
36
—
Investments
Chemical
-
Advantages in Life Insurance Go's.
Cites Diversification
structural
competing
Brown Allen
American Stock Exchange Governing Board Approves Corpo¬
Secrecy
of
31
Private Debt Not at Dahgerous Level:
as
Francisco
30
31
Jules Backman Decries Exaggerated Business Optimism
as
Los Angeles
•
San
22
Materials
(Wm. J. Casey and J. K. Lasser)
"Tax Shelter for the Family"
fans,
are
yet
aware
that
plastics are now making a deter¬
field,
jj
Wires
Municipal Revenue Bonds
on
Purposes—
car
invasion
Teletype NY 1-3370
.
Philadelphia
12
___
Small Business Urges Return to Gold Standard-
material
Broadway, New York 6
7
medicinals. Few laymen, except
perhaps the fishermen and sports
mined
Reilly&Co.
Incorporated
61
Convenes in Philadelphia
f
Warns Against Shortage of Key
and
agents,
and
End
Wants
paper
as
30
March
on
types
fibers
agents,
treating
agricultural
___.
General Business—
IBA Institute of Investment Banking
that
aware
textile
20
Foresees Decline in
the
treating
J.F.
7
Direct
can
for
synthetic
textile
request
on
3
BO 9-5133
broadly used in in¬
adhesives for plywood,
paints,
*Prospectus
Cover
_
Field
ad¬
replace
can
less
Cziner
Materials'
with
are
as
the
as
is
He
Structural
*
25
Tidelands Oil
Chemical Industry
on
Reinforced Plastics for Car Bodies
Reg.
Members
Texas Northern Oil*
24
"___
20
PREFERRED STOCKS
specialized in
Sterling Oil
18
__
New Products Through Chemical Research
Published
have
Empire State Oil
16
—Frank K. Schoenfeld.
Chemical
that plastics
aware
STREET, NEW YORK
15
,__
—Robert S. Aries and Rudolf M.
textiles, rubber, and leather with
advantages to his personal living
1953.
For many years we
14
Eger
Plastics Invade
The situation is that the structural
this
Like
most
Honeymoon"
WALL
13
Stocks?—Ralph A. Bing__
informed
tive forecasters estimate
"Plastic's
1
around
Telephone: WHitehall 4-6551
as
steadier
selling
Merger Trend in the Chemical Industries
an
diverse
right
Common
South Texas Oil*
engineering,
rewarded
the
combined
by
the world.
—Gerard
this small
as
or
Even
layman is
be
been
striking
vances.
political
long-term
Protective
Articles
other field has intelli¬
no
effort
gent
part of either
the
Are
i___
Marshall
technologies of the structural
ing. In
partners.
grows
stifle
will
together
that blind
never
enough
hope
respected
sure
nationalism
us
forward
talent
is
of
share.
Agriculture and the Farm Equipment Industry
about
materials
scientific,
one-
exported.
into
grows
from
of
products
giant, there is
tion
exports
in Mexico—Harvey L. Schwamm..
Kempner
Financing Shopping Centers—Victor Gruen
materials that plastics are replac¬
more
tremend¬
a
of
You
Better."
Do
United States has had
ous
and
"Everything
Can
I
States
of man-made
artistic
and
the
optimism.
—S.
During the last decade
great
a
12
special purposes, they more
frequently extend or replace other
expansion
to
Business Opportunity
serve
on
per
Obsolete Securities Dept.
99
Although plastics have many
unique applications in which they
there has converged
Canada
10
Salesman—Roger W: Babson__
the future of that problem child—
materials.
Stock
Home Outlook Good—But Not So Abroad
•
them to understand this economic
of
Controls—Bernard M. Baruch
—Hon. R. A. Butler
There
discussion
$20.9664
9
Britain's Share in Efforts of the Free World
concerning
the gifted polyethylene and there
is
Warrants
perpetual
shares
5.485
at
a
$12.25.
11
How Protective
revolu¬
are
industries.
buy
Common
The New Administration and Foreign Trade Policy
—Samuel W. Anderson
—William A. McDonnell
conversation
potentiality, Canada is already the
most
important
nation
for
its
size
that
many
is
Let's Return to Old-Fashioned Community Self-Reliance
have
families.
6
Defense Economy With Private Enterprise
H. Slichter..
______
a
—Sumner
well established
are
themselves
to
6
>.
Purchase
warrant
Stock
produc¬
a
Each
—Lt. Gen. Leslie R. Groves
largest nation, from the standpoint
of
llCHTEIMI
"
Articles and News
Materials' Field
B. F. Goodrich
3
GENEVA,
PITTSBURGH
SWITZERLAND
4
The Commercial and Financial Chronicle..
(1312)
The New Economic
Climate in Washington
By GEORGE B.
.
BOOKMAN*
"Time" Magazine
Economic Reporter, Washington Bureau,
Pointing out "things have changed in
ration
Day," and there is
a
new
Washington since Inaugu¬
economic climate in the
Capital as well as a change in fundamental economic
philosophy, Mr. Bookman looks for law of supply and demand
to operate, and says traditional forces will be allowed to influ¬
ence affairs in realm of finance. Holds major danger is whether
National
has dynamic strength to meet the transition, and
indicates Administration will not shrink from acting to stimu¬
the economy
Before he ordered them drop¬ give the job "The Darndest Whirl minded
but at
the
same
time
ped, President Eisenhower had a it has ever had." In that same hard-headed.
>*
private survey made. It showed spirit, Eisenhower seems ready to
Of course the Eisenhower Adthat there might at most be a rise give natural economic laws the ministration is international mindof 1% in the cost of living if con¬ darndest
whirl
they have ever ed. How could it be anything else
killed.
Some
prices had, at least in the last twenty
would go years.
iviost businessmen, and most exdown. The total rise would come
to no more than 1%. Eisenhower porters, will welcome this change
decided to take the chance.
He of economic philosophy in Washknew that much of the force of ington. However in this complex
inflation had already been spent. age the old-washioned economic
He knew also that the rigid pat¬ virtues are hard to live by.
The
tern of controls had caused strange Eisenhower philosophy has its pitdistortions in the normal relation¬ falls, and no one is more conscious
ships of prices. He thought it was of them than the President himtime to let prices seek their own self.
level.
So he took the plunge.
It
trols
were
would
has
go
up,
others
far turned out to be a wise
so
decision.
Has
the
Economy
silience to
Unions have been mod¬
Sufficient ReMeet the Change?
/*
major danger to be watched,
it
seems
to
wage increases.
They know that
me, is whether the
is one of moderation, particularly in economic matters.
in the next round ox wage bar¬ U. S. economy has the resilience,
the dynamic strength, to stand so
afraid
of
the
law
of
supply
and
gaining
they
will
not
have
Gov¬
Even
though the
Eisenhower
Administration has been in power demand. It takes a relaxed and ernment on their side of the table. much freedom after such a long
late
more
international trade.
just short of two months, and it
is probably true that we "Ain't
seen
nothing
still, so
much of great
yet,"
significance
has happened
in
Washington
in
this
time
short
that
propose
I
to re-
new
eco¬
nomic
climate
in the
Capital,
that
climate
affects
world, the nation and your
ness
of
exports.
sketch for you
climate for
You
visitor
you
the
busi¬
So I propose to
this new national
exports.
exporters do not need a
from Washington to tell
that your business is peculiar¬
ly sensitive
the policies of gov¬
ernment, both of our own govern¬
ment and of foreign governments.
In
far in their demands for
so
approving attitude toward the free Prices too have taken the change
functioning of the forces of the calmly. Though a few prices have
gone up, there has been none of
marketplace.
You will remember that in the the overheated pressure on prices
that was so freely predicted
in
first few weeks of the Eisenhower
Administration there was a sharp Washington some months ago.
.
.
_
A
exposure
control.
to
Thanks
If
ftrw
th
s
co
y
almost
doubled
14 years.
hac
r\n!hS and
onJ
has
doubled
again m the last
At the moment
have
we
unemployment.
no
With
price of cattle. The
nnn nnn
nonnlo
nmrlr
Traditional Forces in Realm of
61,000,000 people at work, unemcarried reports that banks
Finance
were foreclosing on loans in the
In the realm of finance, this
cattle-raising country. Congress¬
government also places great re¬ tion is just being approached. The
men from cattle states got excited,
imAm
papers
Wash¬
on
forces.
Take the
fact, I understand that several
do.
to
In
the
midst
clamor I dropped
of
all
this
in to see one of
economic Nation's productive resources are
question of debt almost fully employed, except for
many
due
for
refinancing
in
the
next
businessmen
Government
today.
two years.
The policy of the new now accounts for almost one-fifth
in the Agriculture team at the Treasury is to let the of our total national output. In a
of the men on financial
marketplace
set
the controlled economy, government
the team of the new Agriculture price at which new issues shall be had the tools to keep wages high,
Secretary, Ezra Taft Benson. This sold. No longer will the Federal to keep prices low, to
indusofficial
was
very
relaxed.
He Reserve System be used to "rig" try with orders, to keep the price
wasn't worried a bit about the the market for government securi¬ tag on money low enough to make
drop in cattle prices. He pointed ties to keep interest rates artifi¬ business expansion attractive. In
out
that
cattle
prices usually cially low. Maturities of the float¬ a free economy, prices will be desoften just before income tax time, ing debt will be lengthened. This termined by the relative strength
Wage rates
anyhow. And he ventured the policy costs money, costs more of seller and buyer.
opinion that cattle prices may money than the government had will be determined by the relative
been paying for debt service. But
strength of capital and labor
have been too high previously and
the
top
men
Department,
one
full
it
was
the
not
unusual
that
price rise chalked
some
up
of
was
in¬
not
of
economic
freedom
nancial market.
The
in
new
the
fi¬
that
business
needs
for
new
in-
Admin¬
.
WHAT PERCENTAGE OF
MYJNVETTMENTS
.
was
named De¬
—TT"
*tr",sU'
fense Secretary, he said he would
«
•
"num
Growth Situation
Since 1932 Specialists in
VIRGINIA—WEST VIRGINIA
Price
CAROLINA
featuring
■F. W.-
GROWTH STOCKS
CRAIGIE&CO.
RICHMOND, VIRGINIA
cru-
sade for
Victory in World War II
and the crusade for unity among
the North Atlantic Nations? But it
is
not
international
soft-headed
minded
in
a
"Globaloney" sense.
Administration, as we well
know, is facing up to the challenge of Communist aggression.
or
This
But
it
does
believe
not
that
the
£™5£aiVtaxpayer can or should
beasked *>
rebuilding
free
the
tbe wh°le blu *°r
strength
the
of
WOrld.
The Eisenhower Administration
no£
coin
the
phrase
"Trade,
Not Aid „ but it beiieves deeply in
the vaUdit
of that ldea
Whpn
tbp
TT
am
FnrP1>n
s
began, it was started
with the intention that it should
be ended after
f
" ~
„nnHnnL J'
b
stipulated
a
A
the
num-
nrot?ram
has
fnr+h^r
nnrf
Gilding it llHS rGCCQGQ fUrtllGF 321Q
flirthpr
intn
fhp
Firct
^ we?t;^llo,w^by EJ??omiS
^ld' and Mutual Defense Aid^ and
Defense-Support Aid, and Techn]cfi Assistance. In the sixth year
-e P°s*-war Phase of the U. S.
Foreign Aid Program former
President Truman could think of
g°od reasons for recommending
spending another $7.5 billion on
foreign aid of all kinds,
On the other side of the world,
we have been carrying on for two
and a
years what is un-
doubtedly our most expensive foreigo aid program, namely the
Korean War. Into this War, we
have poured more tiit-m 125,00(1
sight.
The Eisenhower Administration
approaches thus problem of our
overseas expenditure of lives and
money with two basic objectives
in mind: The first, is to find ade-
Quate substitutes for the commitment of American manpower;
the second, is to find adequate
substitutes for the commitment of
American Government dollars.
The effort
make
better
now
use
taking place to
the forces of
of
Nationalist China, to shift more
of the burden of fighting Communism in Asia into the hands of
Asians themselves, is not being:
undertaken with any thought of
appeasing Communism.
On the
contrary, the basic plan is ta
maintain the pressure, on Asian,
Communism, or if possible to increase it, but at the same time to
disengage American soldiers from.
the task.
^
There is a counterpart to
in
the field
of ^foreign economic
Admittedly, the, Eisen—
policy.
hower Administration is trying to*
Circular
'
Continued
on
more
page
41
RAPIDLY EXPANDING
8%
Western Central
Petroleums
•
on
Request
•
•
D
Bell System Teletype: RH 83 & 84
Telephone 3-9137
particularly can afford to do
•
MUNICIPAL BONDS
BALTIMORE 2, MD.
Approximately $4,25
Yield about
INVESTMENT RESEARCH AND COUNSEL
10 LIGHT STREET
mem-
The
STANDARD FACTORS CORP.
Common Stock
NORTH and SOUTH
ASSOCIATES, INC.
overseas:
OIL COMPANY
Bulletin available upon request
T. ROWE PRICE &
orable crusades
save
money' in our foreign aid.
policy. There is no intention of
leaving our Allies at the mercies
of the stepped-up
Soviet trade
Another characteristic
of the offensive, or prey to native ComPresident Eisenhower refers to
climate for exporters in Washing- munist agitation.
The Adminishis economic policy as one of "un¬
ton is this: Our foreign economic tration is deeply convinced howshackling" the economy.
When
policy will be international ever that our friends in Europe
Charles E. Wilson
SHOULD HE IN COMMON STOCKS?
Military
a
American casualties and as yet
uncounted billions of military exacross a bargaining table or on the
penditures. The end) as we have
the price picket line.i The price of money, recently been told, is nowhere in
vestment, will no longer be kept
years ago a speaker told some of
istration places great faith in reg¬ down by a Treasury intent more
unconcerned,
but
he
certainly
you that you are the most sub¬
ulating the economy by the indi¬ on cheap money than on using
was not worried.
sidized group of businessmen in
rect method of influencing
the money as a regulator of the econTo find a government official
America. But it is not only the
supply of money and credit. One omy.
so
relaxed
when
thousands
of
commentator has called this "Fin¬
$35 billion in foreign aid that the
This new atmosphere of freevoters were
getting so excited
United States has spent since the
gertip Control" of the economy. dom
places
responsibilities
on
about what the law of supply and
It is a method that places supreme
war
that affects your fortunes.
those who enjoy it. Business has
demand was doing to them was a reliance in traditional economic
Like
businessmen
everywhere,
the responsibility to be moderate
very novel experience for me. I forces, rather than direct inter¬
you
are
directly
affected
by
in its price demands, to improve
had not found anything like it in ference by Government officials
changes in tax policy, by credit
its product, to lower its costs. La¬
Washington since I first started in the Nation's financial trans¬
policy, by farm policy, in fact by
bor has the responsibility to modcovering
national
affairs,
15
years actions.
every facet of policy-making in
erate wage demands, to join manIn agriculture, too, Eisenhower
ago.
Washington.
agement
in trying to increase
The aftermath of this was, as is pursuing this same philosophy. man-hour
productivity.
Finance
His hands are tied somewhat in
A Change in Fundamental
you know, that the cattle market
has the responsibility of using the
this field by the fact that during
Economic Philosophy
steadied, and consumers are now
power
of money to encourage
last summer's campaign, he prom¬
The
biggest basic change in getting the benefit of the price ised farmers he would support business expansion, rather than to
tax it for all the traffic will bear,
Washington since January 20 that drop.
basic farm commodities' at high,
Unless these responsibilities are
This new government also took
is going to affect your business is
rigid levels for another two years.
its chances with the law of sup¬ The decision on butter shows that. acknowledged and met, the exa change in fundamental economic
periment with freedom, with an
philosophy. Your business is going ply and demand when it made the But his Secretary of Agriculture
unshackled
economy,
will fail,
to be conducted in a climate of decision to do away with price has made it
plain that he would New and
perhaps more onerous
and
free enterprise.
wage
controls. Until they rather see a flexible system of
shackles would have to be dewent out of office, the last Ad¬ farm price supports, leaving some
This new government is not
vised the next time. No one is
ministration predicted all sorts of room for farm prices to move up
more conscious of this than Presi*An address by Mr. Bookman before
dire consequences might follow if and down above disaster levels, so
dent Eisenhower and his Adminthe 33rd Annual Convention of the Ex¬
price and wage controls were re¬ that natural adjustment can be
port Managers Club of New York, New
istration.
They know that they,
moved.
York City, March 17, 1953.
11 made in supply and prices In this
as Government, can do only part
field too, the Eisenhower Admin¬
of the job of making freedom
istration wants to let in a breath
work in the market place.
of free enterprise competition.
flation should be lost. He
by
the Eisenhower Administration is
in the willing to accept that as
wild days of the post-Korean
headed
is
el°y TheVea'k'of1 defense^roduc- there was aid to Greece and Tu^
ke£ then. Marshall Plan aid came
traditional
liance
ington.
it
Statesman who has led two
thetewiVbfhVnrod^acadn^v
of
almost
in the
drop
when
to
Delegations came to the management. We have a national
negligible soft spots.
But how
Capital from the west to find out debt of about $260 billion, of
long can that be maintained? That
what the government was going which almost
$100 billion come is a worry on the minds of
a
new
erate
demanded some help from
field. There is
a
.
Administration
today on the
outstanding
economic
Bookman
new
porttoyou
changes in the
George
Concludes
.Thursday,Mareh 26, 1953
Singer, Bean
&
mackie, Inc.
HA 2-0270
40
Exchange PI-, N. Y. 5
Teletype NY 1-1825 & NY 1-1826
inc.
;
11
Producing "Wells
New Drilling Scheduled
Operating at a Profit
Capable Management
about 60c
For Further Information
s. b. cantor co.
79 Wall
St*, N. Y.
•
WH 4-6728
(1313)
Number 5206... The Commercial and Financial Chronicle
Volume 177
the manifestation, in
prices,
is
suppressed
forcefully by the government by
but
ent;
Inflation
ir
Steel Production
The
Deflation Ahead Now?
01
Electric Output
ceilings and controls.
Nor
Carloadings
.
State of Trade
Retail Trade
Food Price
Mr. May asserts Kremlin's
post-Stalin policies will vitally influence our own inflation-deflation course.
Emphasizing inflation
is not one-way street, he orientates our present position after
recurrent long-term swings. Detailing numerous inflationary and
deflationary elements now confronting us, he concludes (1)
over near-term deflationary factors may well predominate and
entail mild price declines with reversion to monetary stability;
(2) over very long-term, secular trend of dollar will tend to¬
ward depreciation; and (3) both inflationary and deflationary
pressures will accentuate government interventionism. Regard¬
ing status of investor, he cites past record showing absence of
Index
Auto Production
and Industry
Business Failures
v
J)
The net result of the
declines and advances in over-all indus¬
production for the nation in the period ended on Wednesday
of the past week showed that Output held close to the level of
recent weeks, which was the highest since the last quarter of
1943. It was estimated that total output was about 3% under the
trial
reached at that time.
all-time high
Claims
were
New claims fell to a new low for
II.
10% and
World War
insurance benefits fell
unemployment
for
the lowest level reached since the close of
near
the
Secretary Weeks of the United States Department of Com¬
reported the past week that business activity in the current
quarter is higher than in the final three months of 1952 and
"solid confidence" in the business outlook is reflected in manu¬
He predicted 1953 capital expendi¬
plant, machinery and equipment would top 1952's $26,Personal income, the Secretary noted, is running at
$280,000,000,000, or $3,500,000,000 above the pace
in the final quarter last year.
tures for
500,000,000.
an
to
It is particularly
timely
portant
or
deflation
of
ahead
at
type
from hour to hour or from day
to
day, has, of course, been cited
a bug-a-boo
in numerous dis-
oc-
less
our
made
reasonably
soon
on
urging that price adjustments be
they are justified. But
cautious
officials, this trade authority points out, favor a
before any moves are made;
of possible cost increases resulting from
"wage talks which are likely to begin no later than June 1; avoid¬
ance of the risk of public reaction to precipitate increases, as well
as to avoid embarrassing the Administration that freed them from
more
careful study of the price structure
such
as
determination
controls.
Kremlin's
the
Guard is
cost
our
producers
may
be expected to move in advance of the bulk
their order books indicate the traffic
Defense
rnindV
m
minus,
as good as last year with
quickening of delivery schedules on military
items.
These factors may be expected to spur steel orders for
defense, states this trade magazine: (1) Inauguration of the Malenkov regime in Russia raises new doubts.
(2) Investigation of
ammunition shortages will sharpen already quickening procure¬
ment schedules.
(3) Red shooting of Western planes this side of
the Iron Curtain will firm defense determination, and (4) Eisen¬
hower economies are aimed at getting most fire power per dollar;
cuts
.
are
A
uo
in
to be
a
administrative, not material.
careful check
retrenchment, signify
deflation?
witnessed
major
here,
peak—or
major industrial
ing steel
demand;
"daisy chain"
shows Detroit still the pacemaker in scorch¬
areas
A
development
This is
that
market
lar
consumers are
the
occasionally paying 14c
lb. for sheets. Mill price is about 6c
a
is
per
type
iusti-
suDDressed
war.
inflation
mean
we
had here durBy suppressed
in
situation
a
forces
inflationary
at
are
work, but where the usual price
manifestations
u
-
are
xu
prevented from
u
i
~
orthodox
a
bit
of
orientation
are
not being paid just by the little fellow, but by
Continued
on
some
page
46
who today is
tied to the cost-of-living irjdex
1S inflation-conscious more than
at any time in past history It is
not today just an econ°mlst sJon~
economist's problem;
t
H 'as
people
are
tied
to the cost-of-living index, more
and more the population is con¬
scious and
concerned with this
but
on
more
and more
the escalator, and as I say
cor ce'neu
scTi
of us, not
to
sport
a greatly increased money supHave pjy The money is supplied; all the
of
falling prices in
categories such as the
merits because of
various
Continued
on
monetary '
demic
discussion
towers
THE MAIN
WAR-
CAUSE OF INFLATION
CHABT
I
I860
1920
1946
,
160
of our
100
the
in
ivory
universities or the
economic societies of which many
of
because
members;
are
us
answers
the
40
give the key to the future
of pension
funds,1 as to
the
whether
surance
position
of
our
i*. <-.r
in¬
holders, millions of them,
s.T"4<",V r"
really permanently endangered,
whether the future of the
1926
=
100
and
20,000,000 of our non-union-pro¬
tected wage earners can be safe¬
1
Chart, of wholesale commodity prices (1926==100), shows
after each of country's major wars—Revolutionary, Civil,
HC
major price inflations
World Wars I and II.
Also, above all, they in¬
dicate whether
armament pro¬
our
and the future of the en¬
tire free economy can be reason¬
financed,
ably
TAKES PLEASURE IN ANNOUNCING THE
John P. Broderick
BROADWAY
as
here
tion
1959
talking
such
end.
We
World
wholesale
WHITEHALL 3-1277
Transcript
before
the
Professional
of
32nd
associated with
now
War I, when
prices multi¬
Men's
address
by
Mr.
$roup,
Cincinnati, March 13,1953.
May
and
University of
'
us
as
a
vice-president and the
affiliated with
our
& Company is
organization.
Ames, Emerich & Co., Inc.
Established 1911
are
hyper-infla¬
place in Ger¬
Annual. Business
JACK R. DEMPSEY
Retail Sales staff of Dempsey
of
took
as
after
1922
no
now
Member Midwest Stock Exchange
105 So. La Salle Street,
ST ate 2-5300
plied twenty-two fold over what
★
26,
about
pleased to announce that
the
stop a moment,
definition, and
me
of
matter
a
bandied
in
NEW YORK 4.N.Y.
MARCH
of
is
let
are
MR.
course,
right here get to a usable defini¬
tion of what we mean by infla¬
tion—a term of which, of course, is
many
52
of
stability
Matter of Definition
Now just
not
PUBLIC RELATIONS -ADVERTISING CONSULTANTS
which,
the
We
individual busi¬
dollar.
A
I
and our free in¬
guarded as well as
our
cf
on
BUSINES \
54
funda¬
phistric conversation nor for aca¬
nesses-—all
IN ASSOCIATION WITH
page
the
merely an indoor parlor
be talked about as so-
the future of
FORMATION OF HIS OWN
*
.
Problem. Your labor unions today
mental, practical questions for all
stitutions safe
Robert S. Coleman
,
®.v®ry wa?e earner>
gram,
prices
may
,
,
,
help us to see w}}ere we are today
Jhe cycle. First, I might say
that not only every taxi driver
an(* manicurist, but even more so
perhaps
vital,
really
Now
,
v
and other controls at the expense
major 0f
policies and relative stability, on
which we are embarked, apt to
be regarded as permanent?
are
^
Inflation Lulls
showing themselves by numerous £.
u...m:ncf
pn„„nv
mnpprnp-I
devices such as the imposition of ***
xi.*
x
with de-tiation, and are aireaay
price ceilings by the government
trying to shuttle these arrange-
Again, is the current
to
guarded.
lb.
good indication of the tightness of the market. These
we
ing the past
effective fnfla-
which results trom tnose causes.
abroad, the mainsprings of inflation are pres-
as
instead
depreciation
creeping
dollar?.,- (3)
is
area
having broker steel from hand to hand while prices
leapfrog. Because of this,
to I5c per
of
a
(2)
arp
wp
about
inflation, which
merely a foothill—of inflation on
the long road of permanent secu¬
worth
of steel demand by "Iron Age" editors in
which have
anH
1951, and the other
indications of contraction
long-term
we
our
wHp
wona-wiae
prices
iqri'
pppurrpri c npp
occurred
since
and
worlrl
tne
that
•J ?• worried about suppressed
which
ques-
to
come
thp
no
u;
down-turns
These
business will be at least
expecting
"inflation''
tions, among others,
will bear still higher premium prices, it states.
some
our
Administration.
new
own
pvtPnt
T
decade
last
the
not in this country
are
fiab?v1^1ried
rtUdLC
inflation-deflation direction under
reversion
of the industry—especially if
direction
during
We
today concerned with
of hyper-inflation.
Palace
new
iew
w
important key to
an
.
This reasoning will likely prevail, although marginal or high
Federal
it obvious that
The following
grounds that
here.
an
hv
had confidence in his mon-
missions
of
budget, makes
current
are
as
All
^n0n^tlfa7P'yaio^UfiseatnVatDericeys
f.^i„TresUitT^rom those cai^es
of inflation, where
one
no
the
have
ey
defense
use.
consumer
enough
to have
an effectlve
infla¬
tion.
Your
inflated
credit
and
The
times.
are
„
to
by insupply, and
various
which
91 l"es* 'TJLIllTn S? iSZ
'° £l' my de,f' '
°
thp
In other words an increase in the
no
expenses
for
of
amount
the
services
things must be included
these
of
and
74%
executives
and
available
Cold(
than
mill
goods
supported
was
German
Wilfred May
the housewife
in the money supply,
exceeds
accompanied by a general
flight from the currency-both in
Germany and to some extent in
ar-
increase
an
which
1919, and by the
in the money
France
our
cupy
Some
to
concepts, our definition is simply
follows: inflation consists of a
was
us.
at once.
structurals, rails and plates will likely face the
increases, since some producers are convinced that these
products have not been pulling their share of revenue, based on
cost data they are continuing to study.
due
contraction
or
price changes or consumer pref¬
Cutting through all these
erences.
loaf of bread. All this hap-
creases
that
other
A.
a
pened and
Realization
imament
will not hurry to put a general increase into effect
They first want to determine about how much the seventh
wage round is going to cost them.
buy
lies
But producers
Users of bars,
in
marks for
man
ques-
inflation
War
stiffest
they'd been
whether
tion
prices will go up now that controls have been lifted,
according to "The Iron Age," national metalworking weekly.
the market situation permits.
to
now
tary-re-highlights that im-
Steel
as
pansion
following year stood at 40,000,Stalin, in addition to its other 000,000 times their 1919 level, so
cosmic effects—political and mili- that it took a basketful of Ger-
of
product; or unpopularity,
some
conversely,
of
other
kinds
of
goods.
That has nothing to do
really, with inflation. That is ex¬
make this talk, because the death
75% of the total grants.
long
for
of
total, amounting to $2,800,000,000 last year.
Repayments by foreign nations in 1952 were $600,000,000, the
department reported. Western Europe received $4,200,000,000, or
When price increases come, they will be on a selective basis.
Goal is to make every item on mill books pay its own way—as
change in prices due to consumer
preferences: increasing popularity
for some kind of goods, a craze
inflation-hedge element.
1951
that producers are convinced that
selective increases are necessary 4& aehieve reasonable profit
margins and correct price inequities that arose between items
during the period of so-called stabilization.
imbalance in prices or a
able
totaled $5,600,000,000, 10% above the 1951 figure.
Grants of military assistance comprised $2,700,000,000, almost dou¬
ble the amount allotted in 1951. Economic aid, however, dipped
weekly adds
price rise which results
a
an
as
nations last year
trade
in¬
confused.
major rise in prices resulting from
the United States Department of Commerce
stated that economic and military aid from this country to foreign
This
from
between stock prices and currency
Maintains today's investor is fortunate in being
buy stocks on value basis without worrying about
In another report
from the
That is
which
with
sometimes
is
flation
with
concerned
we
depreciation.
annual rate of
20%
are
expansion,
mere
*
correlation
consistent
year.
merce
facturers' expansion programs.
of
terms
By A. WILFRED MAY*
Commodity Price Index
5
March 23, 1953
Chicago 3
6
The Commercial
(1314)
nically and
An Industrial Look at Atomic Powei
There
However,
be
can
within next 10
develop¬
power
sacrifice
Of
military security. Asserts, in atomic
depend upon our superior manufactur¬
ing techniques to keep nation safe.
field,
energy
In
definite
a
Atomic
1944
when
Senior
confident
we cannot
of
of
started
to
we
the
atomic
the
think
The
general
energy
of war
is
objective
the
value
of
of
tion is carrying today are
our
atomic
proof
other than in the waging
in the avoidance of
or
I
this
definition to
over
the usual term
more
"peacetime"
is
precise
more
and
helps
avoid
to
and,
means,
tion.
emphasize
Leslie R. Groves
can
very
out¬
what
you
sible
to
not
wf!$ftt3^*regard
of
pos¬
the
to
nuclear
not
limited
these
to
and of uncertainties
war
day
day
to
.Kremlin.
It
will
to the
as
intentions
of
always be
It
has
until the day cOmes when man
us
the
is
possible that
troduction
with
the
exact
of
the
assisted
ization
the
atomic
in
the
of
processes
for his fellow
The
for
reasons
sia
men.
this
quite
are
rimple.
bombs
in
potentially
the
numbers
available
are
would
be
as
true
if
destructive power of these bombs
3iad
not,
it has, increased since
Hiroshima and Nagasaki. The situas
tion is made much
i
<
t
worse
by that
ff-shoot from the development of
he atomic bomb,
namely the hy¬
drogen bomb.
has been
no way
discovered
to
fissionable
materials
prevent
the
in
use
of
weapons.
All
that is necessary is to have
f.uch materials in sufficient
quan¬
tities to make a bomb.
Industrial
vs.
We have found
rate
those
the
i
are
Use
way to sepa¬
materials
suitable for
into
and
war
can
only be used in
pursuits. Like the steel
ploughshares
beaten
into
Material
in
that
swords,
be
can
fissionable
industrial
readily converted into
use
can
be
weapons of
The uses of atomic
energy in
idustry must therefore always be
discussed against the
background
Cii military power.
var.
>
Today
that
we
face
has
man
desire
for
the
issue
faced, his
$&me
always
comfort
and
his
tor
survival, or in terms
iunt, his standard of living
1
his
r
is
i
'.ways compromised
£.:nd
so
No
urge
more
terms
this issue
on
this
of
atomic
utweigh
the
mind
thinking American
however
remote,
tion
nation.
as
/aid
a
some
we
could
energy
in
tary
bomb does not
any
of
possibly
of
any
possibility,
our
destruc¬
As the President
time
close-tolerance repeti¬
tive production. Certain
phases of
its
production
much cruder
by
in
us
compromise
]
basis than
our
aredness burdens which this
*An
/.be
address
by Gen. Groves
Cleveland Technical Societies
done
was
Manhattan
a
project
the
Russian
complete
disre¬
gard for human life and welfare.
The Hanford Plutonium
plant and
the accompanying chemical
plants
could
-have
been
quicker and much
had
we
chances
that
been
built
more
willing
to
human lives. I
on
much
cheaply if
take
am
sure
Russian Commissar would
no
highly radio¬
the
lives
health
or
of
There
is
I
best illustrate this
by some¬
can
that
touches
We have all
us.
ment
Coun-
by
automobile,
we
with
and
other
they
are
the
tires
have
one
of
the develop¬
drove
we
expected
weapons,
riers
be
of
such
to
tire
punctures
troubles.
Today
almost non-existent. But
of
or
today
even
been
go
far
beyond
what would
thought of
After
as
all
makes
once
extreme
it
really
little
difference
to
the
average user whether tires last for
20,000 or for 30,000 miles.
the
Now,
power
of the
atomic
bomb
Russia
is
great that it gives us little ad¬
over the Russians if our
bomb is a little more
vantage
perfect tech¬
posi¬
against the
damage
will, and such will is
will
to such
us
bend
can
car¬
she
weapons,
extent that she
gether.
to¬
nical
to her
us
enslave¬
our
terest
some
weapons, we initiated
In Dec. of 1942
only a
months
after
all-out
our
embarked
we
drive
sidered
not
standpoint
the
on
velopment, this question
fully considered, and it
only
de¬
was care¬
was
con¬
from
the
of
victory in World
War II, but of the period after that
It
was
our
a
belief
atomic
an
would
be
feasible,
first
obtained
would
weapon
be
able
II.
our
power
It
-
recognized
was
then,
now
in
thinking
concerning the
of the atom, that possession
atomic
would
weapons
tremendous
responsibility
leaders
governments
of
place
on
.
former
support of
.
which
Perhaps
too
are
economic
in
are
prone
their
relations
nature
very
times
a
reasonably sufficient
as
plexities
of
the
of
others
modern
tank,
life
in
and
and
The de¬
weapons
the
com¬
dependence
modern
existence
I
In essence,
than
the
populations.
complete
lack
of moral
principles, or even decent
human instincts already displayed
Hitler
to
pointed
Continued
the
certain
page
32
If
to
question
amine
prosperity is ab¬
search
our
of
will
in
be
fundamental
but
on
vain.
to say on
more
let
conditions
us
ex¬
are
to¬
they
as
this
objec¬
first
day.
'
It
is
and
seven
one-half
since the end of World War
years
II.
now
The
world
economic
picture
that unrolled in the postwar years
has three facets. First, the United
States
economic
nation
known.
ever
the
from
emerged
the
recent
by all odds the most powerful
war
other
the
world
has
Western
Europe, on
emerged greatly
hand,
weakened
by loss of manpower
and by the devastation of her pro¬
ductive
plant and
property. A
third facet to the picture was the
aggressive
taken
bv
expariionist
the
attitude
Government
the
of
Soviet Union.
The Foreign Aid Program
in
the
controls
which
continue
national
and
to
trade
restrictions
expand
duction.
world
commerce.
trade
Notably,
tariffs and
and
United
pro¬
Government
States
be reduced drastically and, in the
The
foreign
these
is
progress
lines,
hazardous
to
rencies of
the
it
make
free
all
S.
Goals
in
There
lenged
what
are
United States in
eign economic
sire
to
help
be
must
economic,
are
who have chal¬
program
on
the
on
44
page
cur¬
readily
AVAILABLE
•
terms
•
SECURITY ANALYST
political
We
free
a
de¬
we
GROWING CLIENTELE
•
Constructive Writer
•
PORTFOLIO ANALYSIS
•
Mature Judgment
•
SALARY & COMMISSION
!
our
military
It will be
our
•
and
that
and
achieve
unless
Reg. Representative
of its for¬
relations.
achieve
to
aid
Economic
recognized
goal
some
>•••«
by asking our¬
the goals of the
interrelated.
impossible
aver¬
be
expanding world economy and to
help provide rising living stand¬
ards for all people of the world.
It
year
approxi¬
off
start
us
are
our
Continued
Relations
■i
Let
is
made
the
Foreign
which
a
age.
convertible.
U.
aid
is still
States
billion
re¬
would
world
neighborhood of $40
United
mately the postwar annual
should be strengthened and
internal inflation must be curbQd.
further
a
unprece¬
and
which to date have
spending about $5
in
undertook
and
steps,'including loan
programs
totaled in the
serves
along
dramatic
aid
trade restrictions must
dollar deficit areas, monetary
Until
and by the threat of
Communism, the United
of
dented
hamper inter¬ billion.
and
reconstruction and
problem
a
rehabilitation
Europe,
freeing series
These must be dismantled in order
to
in
postwar States
toward
move
by
economic
better position, militant
a
time
main
eco¬
have
s
J
the
'
military
strength
and .political
unity needed to deal with the
*Ai
the
pert
on
develop: The free
in
new
any
trade and making currencies con¬
vertible.
Nevertheless, there re¬
nomic
fact, and
is
period
this is the idea which
liKe to
at
in
large
to
can.
goals
of
look
materials, for mar¬
products, and for at¬
opportunities
to
make
tives later
What I shall attempt is
to restate the problem as
simply
make it possible for a small hand¬
ful of men to maintain
themselves
control
continue
We
complex.
selves
number of their citizens.
by
we
others
that every problem, no
how complex or
ternational
the
governments,
exist, had to have the
velopment
This
which
produce.
delicate,
has
a
simple solution. This is
especially risky in the case of in¬
having
weapons.
in order to
on
to
thinking, as I have said,
beyond the end of World
went
such
that
chances,
bomb
to
prove
whoever
dominate the world.
The
then
reasonable
were
that
such
to
ob¬
United
raw
investments.
tech¬
the
of
country
world
of
highly
so
solution
easy
this
our
Faced
work.
War
How¬
prejudiced by self-in¬
failed
matter
as
atomic
such
written.
attempt to undertake today.
I do not come to you
today with
of
war.
been
problem and
the issues—that is the task I shall
I should
on
have
lack clarity and ob¬
Thus there is a need for
restatement
of
We shall have
to
as
ask, and quite proper¬
ly, why, with the potential effects
few
Rockefeller
sent,
either
jectivity.
You may
the
David
articles
so
or
recognize
of
to
are
the
parts of the free world for
tractive
studies
been
we
ourselves.
kets for
much of what has been said
ever,
has
if
sources
There
and
should
we
mo¬
of people in
achievement
prosper
other
made, speeches have been deliv¬
ered
lands,
the
States
have put their
heads
free
from
jective is essential to the
an
ment.
In
numerous
con¬
application of
by better de¬
or
measures
able
an
have
to
as
skillful
more
such
fensive
automobile tires.
when
ago,
deal
every
seen
of modern
Years
to
equalizing ef¬
forgotten.
not be
that
lands
this
all
another
fect which must
time
and should be remembered
\
other
in
men
assume
our
workers.
wisest
many
in
-
ing
the
to
eventually
endanger¬
goal,
that she has enough atomic
weap¬
ons
so
that by striking first, or
and
remote control without
this
the
detracting
economic betterment
effort to
an
reach
throughout
Without
the ethical and humanitarian
tives which move us toward
trade
have
ment
accomplishing such work through
will
she has equalized her
active chamber to make
an adjust¬
repair, whereas we
would always
provide, even at al¬
most
prohibitive cost, means of
standards
world.
relationships.
In
we
we can
develop an economic pol¬
icy that will produce rising living
tablishment of
normal
tion with respect to atomic power.
This will be when she is convinced
there
a
such
spell
threat.
On the other
can't hope for military
strength and political unity unless
the free world
in
the
rees-
be. We still have
breathing
Communist
hand,
exists
offered,
official and
an
be forever.
may
This
British
Chancellor
oughout
r
exhaustive
spell, due largely
atomic superiority and it is
90%, that
or
be
ceases to
hesitate about ordering one of the
a
to
the
any
better than
secure
proletariat to enter
so
before
C-J, Cleveland, Ohio, March 16, 1953.
na-
on
particularly at Hanford. This is
primarily to. our great regard,
performance.
afety as a nation for a
slightly
leasanter life. The military pre-
done
due
guage we all understood. We
1 ot
afford
to
/
be
can
the
essential
).
necessarily require
•
can-
atomic
mass
ago, "A soldier's
pack is not as heavy a burden as
slave's chains." That was lan¬
f
the
t h
and
breathing
our
it
production,
But
willing to
were
agreement. This of
that
we
prolong this
breathing spell as long as we can,
hopeful that someway, somehow,
been
United
the part
essential
production of close-toler¬
equipment.
thing
that
might
d.chieve through the industrial use
<
to
But
industrial products and mili¬
we.
advantage
the
to
technical
own
we
an
ceases
usually
could far outdistance her
mass
ance
ver-
military security. Man has
must
in
inferior
in
we
and
that
peaceful
i
no
fissionable
those that
that
great
Unfortunately
Military
far
our
destroyed
feels
was
in
on
fails to
in¬
always felt that Russia
and
of
government
personnel.
States
Government,
of
some
tinue mntil
We have
the
leaders
of
and
Exchequer to Washing¬
highlights the keen interest
which
take
part to the insistence
of German technical and sicentific
know it.
we
even
the
visit
bargaining have been inbargaining
is, t e r national
dearly loved by Russian diplo¬
conferences,
mats.
Any Russian official who
support¬
industrial
has
Russian
of
Says U. S. has less justification
the
ton
thesis
successful, due in part
attitude
possibilities,
equal¬
assistance
of
world.
to
recent
Foreign Minister
the
of
poration into the Russian economy
completely capable of destroying
modern civilization
'.Chis
greater
free
attempt
an
just how far
received through the recent incor¬
Atomic
now
even
the
The
be¬
behind
fundamental
was
not
course
bomb
States.
and
the
of ■go to reach
the
the United
versus
understanding
officials in disclosing to the world
universally is pure in heart, is ing technical and
perfect in intentions, and has true strength and armed might of Rus¬
love
It
was
diers.
the
was
It
equalizing disproportionate sizes
and strengths of individual sol¬
days of cold
Curtain
breathing
a
any
toward freeing trade and mak¬
move
tions of tariffs and other curbs.
time in which
advantage of this breathing spell,
to gain peace for all time to come.
nations. The introduction of gun¬
powder went a long ways towards
in
weapons of war. This condition is
Iron
to
even
a
countries
This
equal¬
mean
gain
the
tions.
without
great
more
nard M. Baruch to the United Na¬
the
development and
often
are
for
of the United States plan proposed
under the leadership of Mr. Ber¬
national security?
pacity of companies, and
im~
energy
them
use
to
tween
equality. The development of in¬
dustrial processes has often more
than equalized the industrial ca¬
discuss the power in the
locations
we
our
It would be
world could have
spell
developed
have
few years an assurance for
a
peace.
the
a
would
we
banking insti¬
position than at
barriers, and lists as con¬
trading and expanding world
economy: (1) internal policies preventing
inflation; (2) estab¬
lishment of adequate currency
reserves; and (3) drastic reduc¬
conclusion
the
to
came
primary advantage would
our
that
than
question
equalization does not
know, that
is
for
We
izers. This is true in industry and
it is true in war.
But, of course,
progress
at
set,
it
atom
I
to
the
all
having
Technical
like
desires
fundamental
poses
possible
However,
be
enjoyable existence.
misinterpreta¬ impairing
would
that
our
is,can
we
in this nation, dedicated
to and made strong by free enter¬
prise,
develop means of using
atomic energy for industrial pur¬
be¬
it
cause
people
American
They believe that
natural
our
The
of atomic
uses
energy
the
sult.
first duty is to preserve the nation
and
that
this
takes
precedence
war.
prefer
that
believe this.
definite
in better
than others for tariffs and other trade
ditions for promoting normal
national problem which would re¬
discussion
great New York
now
ing currencies convertible."
inter¬
the
of
Washington, executive of
time in postwar period to
de¬
bomb,
Bank of New York
recent conference of British and American states¬
tution asserts "free world is
became
in
success
velopment
in
men
first
Vice-President, The Chase National
Referring to
Energy
we
Free World
a
By DAVID ROCKEFELLER*
The International Problem in Use
In
1953
Piosperity
as
years.
essential
our
long
or as
bombs is much
our
greater, we will retain
advantage.
Sees greatest use of atomic
power in large electric plants and on naval vessels, but warns
eagerness to apply atomic energy to industrial purposes should
not
Toward Stable
difference
the number of
as
really limited
the power of
ments, maintains commercial nuclear power plants could be put
into operation
Chronicle... Thursday, March 26,
bombs in the hands of the enemy
Vice-President, Remington Rand, Inc.
officer, who supervised atomic
long
as
Financial
powerful.
more
little
be
in the destructive effects of either.
By LIEUT. GEN. LESLIE R. GROVES, U. S. A. Ret.*
Retired army
little
a
would
and
New
address
33rd
Annual
by
Mr.
Rockefeller
Convention
r*f
*he
Managers Club of New York,
York City, March 18, 1953.
at
®
Box
J
319,
Commercial
cial
Chronicle,
New
York
7,
25
N. Y.
&
Finan-
Park
Place,
®
a
•
Ex¬
Inc.,
•
Volume 177
Number 5206
...
The Commercial and Financial Chronicle
7
(1315)
y'
4.
*
.r
-
-
-
,
Plants for
^
values., for
Spring
revealed
future
ihe
statement.
Chemical
most seasonal topic, a
a
of the chemical
swift
J. H.
so 1
grown
in
years
a
industry, and certain of its equities renowned
for that quality." *
; *'
«
Likely Decline in General Business
Ashbaugh, Vice-President of Westinghouse Electric Cor-
poration, tells bankers studies by his
*
row,
increased both gross sales
and , ,net
income.
Much
of * this
is offered
survey
Foresees
deserves
it has
rapidly, and; for six
With growth
all
at
operating
.
mention because
"Expanding Your Income '
not
1952
...
Mathieson
By IRA U. COBLEIGH
Author of
the
in
,
of from
company
8% to 10% after 1953, which
may
indicate
dip
a
,
extend to low
!
growth,was achieved by the mer->
point in 1955, before starting
1
up
again.
■
,
S14bnd in J932 by offering
,
With
the
merrily
share
along
market
going ago, a bond issue by Allied Chemby aii> ical would have sounded like fi-
sparked
at
quire
v-xi
ical
issue
bond
point, million by mighty Allied
what cooks ical.
with
t h
chemicafs?
For
of
in
sues
'
number
a
months
is-
this
section
have
Sit
ly
Finally
p
market
should
U.
Cobieigb
motion,
so
Solvents
from
their
is
about
off
about
only
are
few
a
1951-52
showing did not truly reflect the
paces
lows,
Pfizer
4%
A
of
catalog
CA
vv*
stock yields of
ground
3Vp% are available; and
P^ce levels of between 18
share
and 20
times indicated earnings (a ratio
Mathieson
of
prod-
"bifand'gettog
19%.
of = line in this field which has,
lab
versrnol'aiiVJtiwilfmove
«
earn,'
equally.
Those companies
serving heavy industry suffered,
in 1952, from steel and oil strikes'.
languished from
only
permit
about
notes
few
a
specific
all
had
thought
it
would,
not
offered
turn on
chemical, where most
a
issues yield
times
14
at
over
3%%.
nearer
More-
earnings
market price is at an atti active
dustry.
com-
Chemical
Allied
and
Dye
has
the
on
the
1952
chemical
heavier
swing
record
in
total
are
sales,
fndhistry0111 a^rfd^towa^H^roader
items.
consumer-type
at
was
time
one
chemical
user;
number
four
bracketed
the
now
soot
with
Fertilizer
number
it's
in
has
and
one
the
to
insecticides
hp
to
All
the fabulous
fibers, first
rayon,
l0n'h
synthetic
then nylon, or-
etc.,
on
Just
sought
ings by
use
as
to
the textile
stabilize
its
ijnanCce of
A! the
iua,Z,fnr?
wool
the
natural
the synthetic
type
to
Both of these
oYsupplyJTnd stabflity
assurance
of
rubber
raw
price, have added hundreds of
millions
the
to
sales
gross
of
the
lagt
1Q
g
we
have
disposers,
dehumidifiers,
UlOJJUDtIO,
JJlJk
In
etc.
UCIlUiHiUUlti O,
K,
.
may
to the
same
level
the next decade there will be im-
low point
a
provements
1953.
as
we
g
h 1
historically
correlated
y
has
in
been
with
the next 3D
n*
u
other
the
we now
sell one.
it
appears
that
will
follow
the
words,
business
the
+
would be selling tw*>
years we
like other consumer durable goods
r 0 u
forecasted that in
oWriii
nnoiv7Q
business itself. This business, appliances where
ance
products
facts and data and added them up,
«This data then gave us a bench
_
old
the
on
trends of the past,
doubling itself
rat^of1 gr^th''ha"'s?nce
Us
tors generally.
"
For years ACD, with its cash
In
t
0f
great
A
,
.
,,
.
,
,
business over the last year'
general business conditions, has in appears there will be a slight dip
,
some
particularly and then a rise."
respects—and
-
.
This
neither
announcement is
an
these securities. The
magnitude
>
\i
■
,
-
offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.
■
'
'
.
•
"
'
"
<
any
: •
cj
,■
;
'"
NEW ISSUE
blooct dots, a polio vaccine; and tax bites have dictated the wispreventive or curative drugs for dom jf no^ ^he necessity, of long-
TB
™and
bem§
are
re"
debt
term
financing,
fully
1°.* ^Y' ,wb*cb ^ building a new
hydrocarbon
?48 .™llbon
plant
(outside New Orleans) to produce
jn
brief,
$200
debentures
* eai
oeDeniures
million
of
are
25-
El Paso Natural Gas
route
en
are
883,882 Shares
out-
Acryionitrile is a toughie to lined in a prospectus shortly
pronounce, but it spells big profits available unto you.
tn
route.
the a™onia to* it'..via natural They will provide brand new levphis aforementioned jaw- erages for common stock, and fi-
onlvk<forIS s'vntheUe wools"' like'
hut'for
ApHlan
^fribber
nlastics
fibprs;
makp
ran
housing
bndv
or
with
Dlactir
a
mould
for
^°ost'anytWng.
infiatPd
earn
as
ACY
does
not
'in
$,
traditional
tl0n t0 the company s tiaditionai
a
appear
Transferable
Subscription Warrants evidencing rights to subscribe for these sharee
have been issued
by the Company to holders of its outstanding Common Stock
and $4.25 Convertible Second Preferred Stock (issue of 1949), which Warrants
on April 8, 1953, as is more fully set
Prospectus. During and after the subscription period, shares of
be offered by the underwriters as set forth in the Prospectus.
expire at 3:30 P.M., New York City time,
forth in the
Common Stock may
batch of coal tar derivatives,
The
8 856 000
common
shares of
ran
»,»5b,UUU common snares oi
the first quarterj 19g3|
ACD covered their $3 dividend by
it
if
mrtieularlv
1952 per-share earnings of $4.55.
have suggested.
some
oomnanv's
tup
t
ash, ammonia, sulphuric acid and
Priced about 50 (16 times 1952
earnings)
tio
lines of heavy chemicals like soda
al
(Par Value $3 Per Share)
lines of synthetic fibers (po-
lyamide), polyethylene and other
Plastic, petrochemicals. All this, in addi-
well
as
Company
Common Stock
nanCe exalted earnit,g Power lrom
new
arti
and
" ACY
has
its
own
"Laminae." that when laced
gy^a"
market, so has
industry veered away
the rubber
from
re-
Mr.
in 1952 is no reason to blow cold investment trusts, and have been true, however, that the appliance
™ its common. Here's why. It's a Tiffany-type equity for invesbusiness," although modified by
trade
earn-
of synthetics, to
use
tions
have
tL'lS
!
the chemicaliP
nn
one
parade.
has
new
™
numbei
bvxxvx ^ x.
gas-
stay there.
in
Cyanamid6 iAwgTit'a go™",
$313 jmllion tor the sevqn^years
ended Dec. 31, 1952—and heavier
principal notes to be made
general business,"
come, and
businesses,
offer "Rovac," a preventer of hog
cholera,
"Varidase," solvent of
The
but
mark to analyze the electric appli-
5, nor improved the native olfactory charm of goats!
Chanel
to
decline
low as 8 to 10% j" gross
«<Med, among others, freezer*
in- television, bed coverings, waste
"7
the
J*'
'
iargement
competition
this
extend to
No.
fierce
that
in 1955, and then the curve starts and the addition of new ones,
up again. By 1957 or '58 it is back
"When we assembled all of the
Its Lederle Laboratories, famous
for pioneering in aureomycin, now
it has
events,
project
.At ^2l paying $2' Mathieson
yi^ds about 5%, a very tidy re-
four leading uses of chemicals— and marketable investment-laden
Plastics, synthetic textiles, drugs, balance sheets, was able to fl¬
?nd soil conditioners—ACY has an nance expansion by retained earnimportant stake.
ings.
However
a
postwar en-
many
«We
1953
biotics.
At
might have depressed it.
""eut Ildve ueyict>s>cu n.
.
petrochemicals and ethical drugs.
birth (1907> been spectacular.
as
that
said. "This decline after
penicillin and certain other ariti-
chlorophyll apparently is not filling so many vital or social needs
stated
,
been a blue chip chemical for 30 changes in general prosperity; and again in the next 10 years. Howand jus* because its Per share net yeais anci ^
ls*
shares it must be supposed that this will ever, we do not believe it will be
slipped from $4.04 in 1951 to $3.07 grace the portfolios of dozens of hold true in the future. It is also a straight increase in each year's
downward6''price" "evisions'""in ^
Alcohol prices sagged, and
Corporation,
'
...
chlorine, nitrogen, sulphuric acid, Ashbaugh
since 1918, piled growth on growth, multiple for shares in this inwill
Electric
company is Dig ana getting national product, disposable
and 3%.
Time
For example,
long-run advantages to be studies made by his company m"We must consider the new
derived from the Squibb merger, dicate there may be a dip in gen- products that will be added. It's
letter results are expected by eral business conditions in the sometimes hard to realize how
next December.
'
months ahead.
new
some
of these products are;
ST mnanya.s^a!Ltwwny1% ^
30%, and Mathieson
Pharmaceuticals
is
positively frightening in railway
Commercial equities), are not historically out
and
of ite of all business.
net m Chicago, J. H. Ashbaugh, Vice- supported the appliance business
President .of the Westinghouse in the past when other factors
basis,
1951—but that
irt
<fi°s ed' th^t worked3out,
dynamic
Merck
about
spent
w
Conference
Instalment
w n
bit in 1952 to $2.35
a
^Sger in caustic soda, soda ash,
characteristic of this group during
most of the past decade.
For ex-
ample,
research
still a big, and dominant element,
in
chemical
success.
American
Cyanamid
P?r .share
a
tiohal
ho
s
—
greater strength than the compos-
companies^overall
that
noted
about
pharmaceuticals
performance;
1953, with a quarter almost
and none has, gone, looks like a good chemical
in
r e c ent
e
year. Many of the inventory and
forward
speculative
be
.0n
hipped
of
dowii from.$3.02
talk
we
particular
some
~
Ira
before
nowned^'line
Chem-
on March with. s o m e products
'24 to bankers attending the Na-
t
record—$200
on
this
'
In the course of a talk
baTgo'ofHPeVshare The diVide"d
Lt slipped from $2 22 in lsll to Safe'
'no"
n"
discouraging
result
still
mainly
two
gl°ri°UsI13;
a
Subscription Price
$32.50
a
to
per
Warrant Holders
Share
the ^50° million mark and
lading chemical companies. Fur- years> and negative coverage for perhaps hop up the per share.
!ndo
P^°" the $1 dividend. This somewhat Allied Chemical may now be on
vide greater elements of insulastion against
general
a sales loss, if the
business pace slackens.
On the financial
ried
on
side, 1952 cartrend, already well
a
marked,
toward
nancing
in
Time
heavier
chemical
when
was
chemical
most
debt
top
either
from
lowest
1952
in
hoi and
stemmed
areas
of
For
are
one
and
type
partly
the
because taxes eat up
expansion
money
cause
been
new
attractive;
plants
are
partly
so
be-
costly;
and partly because a stockholder
might like a little more leverage,
increased long-term debt has become
fashionable among chemicals. Ten or surely fifteen years
greater
,
n
in-
1otfanno
.
Of course, I've missed a lot in
this
honed
much
for.
1952-53
better
things
due to $25 million
plant
investment,
being
sought
as
a
means
"Baciferm"
power.
and
Riboflavin,
Vitamin
B-12, to
step up rates of animal growth,
present interesting horizons; and a
blood
extender
"Dextran"
is
thoueht
to
have
wide
sales
pos-
about
1Q„
.
Union
,
o
,,
field.
20, CV
may
present
Copies of the Prospectus may be obtained in any State in which this announcement
from only such of the underwriters, including the undersigned, as may
legally offer these securities in compliance with the securities laws of such State.
is circulated
didn't
I
Carbide, whose
\ininn
nacc
53 s es should Pass S1 billion,
and whose leadership in plastics,
and
the
ai0mic
y
production
energy
.
...
and
use
White, Weld & Co.
of
•
is currently noted
pittsbureh
Con.
"s liaison with Pittsburgh Con-
Stone & Webster Securities
Corporation
The First Boston Corporation
Lehman Brotk
?3
solidation Coal also has long-term
vistas of profitability.
Monsanto,
Dow, Hercules, Heyden and others
cbnilM
al(;n
rpppivp
vn„r
tl0nIf you're
an
havp
BIyth & Co., Inc.
Glore, Forgan & Co.
Goldman, Sachs & (! b,
Incorporated
Kidder, Peabody & Co.
Lazard Freres & Co.
Merrill Lynch, Pierce, Fenner & Be- Q
investor, you sim-
piy can't ignore chemicals. Their
nlant_
A. G. Becker & Co.
jnsnce-
®ould als0 rece,ve y°ur lnsPec
qhown
plant®,bave snown Pel®nnla'
three other seasons.
Paine, Webber, Jackson & Curtis
nerennial
growth—in spring, as well as the
sibilities.
At around
fascinating"
talk
a
stabilize and, in due course, to
kitty; partly because interest rates expand earning
have
of
,
penicillin, with price dips
1953,
initelv
to
threshold
vestment excellence and elegance.
of
internal
tbp
alco-
stock—or
mon
over
over-
match.
to
in
14
had
major part in Sterlington, La., to
security—com- steo uo production of ammonia
that, plus a pre- and methanol. Further, a new referred.
In
those
days, retained search center in Terre Haute, Ind.
earnings were usually adequate is calculated to generate new and
generators of capital for plant ex- profitable products.
pansion. Well, times have changed,
Diversification of output is def-
just
enterprises
the
for
cents
production in the industry
fi-
companies,
of
52
March 26,1953.
Union Securities Corporation
8
eluded
is
market cycles
chart of stock
a
—ask for chart C. 312.
Dealer-Broker Investment
Motors, Inc.
American
send interested parties
to
Cyanamid
the following literature:
he had been associated since 1948.
Co.—Memorandum—Shearson, Hammill
Also available are
American
on
Viscose
Corp.
and
Chas.
Pfizer
.
& Co.
Canadian
and
Funded
Provinces
—Booklet—Wood, Gundy & Co., Inc., 14 Wall Street, New
York 5, N. Y.
Canadian
Common
Stocks—Bulletin—Charles
Insurance
Fire
Casualty
&
American
ican Stock Exchange that have paid dividends
104 consecutive years, with yields etc.—Public
Brunner—Report—De
York 5, N.
Canadian
Investing
the
In
Pont
Saxton &
seven
Also available is
times
1952
memorandum
a
actual
on
Low
Priced
Staats &
of
Christiana Securities Co.
issues—William
selected
Broeck &
Bulletin
Pine
same
on
bulletin
the Tokyo
New York City Bank
&
Burroughs
Chiyoda-Ku, Tokyo, Japan.
yield
and
National
York
market
Quotation
Stocks—Ten-year
Common
of 17 stocks—
survey
Inc.,
46
on
Allied
Street,
Chemical
New
York
&
son
&
Dye
of
ratio
Percentage of My Investments
Stocks?—Bulletin—T. Rowe Price &
What's Ahead?—Ten reports a
year
author of "Cycles, The Science of
year
Corp., and
White
Should
be
in
Common
Associates, Inc., 10 Light
to
for
the
Reprinted and Revised
"Highlights" No.
20
Corp.—Circular—Singer,
&
Co.,
Los Angeles
Bean
Security Traders Association of
Ill
New York dinner at the Waldorf-
Association
14,
Firms
May
&
Union
Telegraph
report—Tilo
Roofing
Service
Cantor
Natural
Singer
"
W
&
Co.
Jfomyerk: N. Y. Security Dealers Association
74~/%&ity Place, NewYork 6, N. Y..
—
Analysis
—
land.
The Mil¬
Co.
is
its
holders of
$4.25
convertible
second
preferred
stock, 1949 series, both of record
March 24,
1953, rights to sub¬
scribe for 883,882 shares of com¬
mon
stock
at $32.50
per
share,
a
Bond
&
new
common
four shares of
The
holders
preferred
for
stock
common
of
the
for
each
stock held.
$4.25
stock," 1949
second
series,
entitled to subscribe for
one
are
share
of common stock for each share of
Co.,
June 5,
1953 (New York City)
Bond Club of .New York Annual
Sleepy Hollow Coun-
$28,726,165. J«n« 25-2G, 1953 (Cincinnati, OMt)
CorJ?pa"yThe purpose
.
.
Chicago Bond Traders Club Anof the offering is
nual spring Outing at the Nordic
equity funds
expansion program increas-
primarily to obtain
for
an
the
cnaPac«y of the system by
eonsiruetfonercori
ot
$180,000,-
As part of the financing of this
Sept i«-19,19S3 (Sun Valley, Ida.*
National Security Traders Asso-
datk,n *** Annual Conventlon-
The offering
the
(Louisville, Ky.)
has just ^.Association of Stock Exchange
contracted to sell at private sale Firms Board of Governors Meet$120,000,000
of
first
mortgage
bonds. It is contemplated that the
« i»«
T
balance of the financing necessary
^
program,
company
.
to
raise
the
funds
for
the
fuil
(Hollywood, Fla~)
will be raised through
Investment Bankers Association
the sale of preferred stock and of America Annual Convention st
the Hollywood Beach Hotel.
debentures.
program
_
'such preferred held.
annual
en¬
share
one
Detroit
.
stockholders to the
to > subscribe
of
exMunicipal Bond Dealers Group
pire at 3:30 p.m., April 8, 1953.
0f Cincinnati annual party at the
The offering is underwritten
by Kenwood Country Club,
a nationwide
group of investment
:
firms headed by White, Weld &
June 27, 1953 (Chicago, HL)
which is approximately
right
Club
substantially 11% under the
company.
privilege
,
,
(Detroit, Mich.)
The subscription offer will
over-all
subscription
Out¬
golf party at the Meadowbrook Country Club.
> h
discussion of Electric
according to an announcement by
Paul
Kayser, President of the
common
at
summer
Also available is
market and amounts to
common
*
•
Gas
meeting
18th Annual Spring
Field Day at
stock
Sulphur
try Club.
is at
offering to holders of its
Spring
June 2, 1953
Corporation—Report—Loewi
Offering Underwritten
(White
ing at the Country Club of Mary¬
Street, Milwaukee 2, Wis.
El Paso Nat. Gas Stock
to
1953
America
sociation
Utility Common Stocks.
and
13-16,
Baltimore Security Traders As¬
B.
Company—Analysis—Bache & Co.,
review of Koehring Company and
Paso
Exchange
May 15, 1953 (Baltimore, Md.)
,
225 East Mason
El
Stock
Governors Meet¬
the Greenbrier HoteL
Company, 207 East Michigan Street, Milwaukee 2,
Wisconsin Public
a
of
of
Investment Bankers Association
of
10th
Street, New York 5, N. Y.
waukee
Board
Springs, W. Va.)
Mackie,
111 West
Petroleums Inc.—Information—S.
Wisconsin Public Service Corporation
The
J
America
Company—Analysis—Paine, Webber, Jack¬
Factors
36 Wall
of
of
ing.
Trust
Central
Western
titles
Metals for the Atomic Age-and
Beyond
Association
Ranch, Brackettville, Texas.
Curtis, 25 Broad Street, New York 4, N. Y.
Western
by Edward R. Dewey, co¬
Prediction," sent to those
Foundation
the Press—
Street,
Roofing Company, Inc.—Annual
Company, Inc., Stratford, Conn.
Eagle
Study of
Street, New York 21, N. Y.—Also in-
roster,
Texas Group Investment Bank¬
ers
May 11-13, 1953 (St. Louis, Mo.>
Street, Baltimore 2, Md.
•
May 6-9, 1953 (San Antonio, Tex->
Co.—Memorandum—CrowelJ,
Tilo
of
Dealers
Astoria.
Stove—Report—Uhlmann & Latshaw,
Street, Kansas City 6, Mo.
—
Wrhat
On
St.
Louis
Municipal
Group annual outing.
Inc., 40 Exchange Place, New York 5, N. Y.
Analysis — Thomson & McKinnon, 11 Wall
Street, New York 5, N. Y.
-
Haupt
Tappan
Railroad Earnings—Review—Ira
Haupt & Co., Ill Broadway,
New York 6, N. Y.
contributing $10 a
Cycles, 9 East 77th
April 30-May 1, 1953
(St. Louis, Mo.)
Inc.—Circular—D'Avigdor Co., 63 Wall Street,
Wis.
.
ford Hotel.
Broadway,
Co., 79 Wall Street, New York 5, N. Y.
Tabulation
—
annus!
May 8, 1953 (New York City)
Spring
New
sixth
Lloydminster Development Co., Ltd.—Report—J. P. O'Rourke
& Co., Board of Trade
Building, Chicago 4, 111.
Oil Co.
Robot Vendors
50
Calif.
Wages to
Opera'ing Revenue—Bulletin No. 118—Smith Barney &
Co.,
14 Wall
Street, New York 5, N. Y. Also available are memo¬
randa
Co.,
Inc.—Memorandum—Taylor & Co., 105 South
Street, Chicago 3, 111.
Standard
Front
Societies
convention at the Bellevue-Strat-
New York 5, N. Y.
Quotation Bureau Averages, both as to
performance over a
13-year period—
Stocks
and
]
National Federation of Financial
Company—Analysis—Stanley Heller & Co., 30
Street, New York 5, N. Y.
National Screw & Manufacturing
Weedon & Co., 650 South
4, New York.
Railroad
April 12-15, 1953 (Phila., Pa.)
Spring Meeting at the Fort Clark
Machine—Bregman, Cummings
Eureau,
Company, Na¬
System—Memorandum—Sills, Fairman
Company—Analysis—Dreyfus
York 4, N. Y.
J
Club dinner
Investment
Analysts
Monitor Mines,
a list of
price ranges of stocks most
Securities Exchange.
Over-the-Counter Index—Folder showing an
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter
industrial stocks
in the National
list of 40
Wharton School
Commerce.
31, 1953 (Boston* Mass.)
Boston
Standard Oil Company
investment quality common
Public Service Co.—Analysis—Ira
Broadway, New York 6, N. Y.
Co., 100 Broadway, New York 5, N. Y.
used
a
and
meeting at the Boston Yacht Club.
and
Maine
are
Adding
March
Co.—Analysis—E. F. Hutton & Com¬
pany, 61 Broadway, New York 6, N. Y.
Office Equipment Manufacturers—Bulletin with
special refer¬
to
Register Company,
Finance
of
Illinois Central Railroad
Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
ence
Cash
La Salle
Japanese Share Offerings—Bulletin—Nikko Securities
Co.,
active
&
Foremost Dairies
Corp.—Eastman, Dillon & Co., 15 Broad Street, New York
5, N. Y. Also available are data on Canadian Pacific Rail¬
way, Chicago & Eastern Illinois Railroad, New York, New
Haven & Hartford Railroad, and Northern Pacific
Railway.
In the
America and the
-
Dunningcolor Corp.—Card memorandum—Leason & Co., Inc.,
39 South La Salle Street, Chicago
3, 111.
Chemical Corp., Standard Brands
Inc., United States Ply¬
wood
Corp., United States Rubber Co., and Worthington
1-chome, Marunouchi,
v
Lines,
sponsored by
Investment Bankers Association of
—
&
4,
/
3, 1953
Opening session of Institute of
Diamond Alkali
Inc., Kaiser Aluminum
Ltd.,
Air
Philadelphia
Investment Banking
Vilas & Hickey, 49 Wall
—
of
(Philadelphia, Pa.)
-
-
G. A.
—
(Phila,, Pa.)
Club
March 30-April
Harris, 209 South La Salle Street, Chicago 4, 111.
New
R.
Medium Priced Recommendations—Brief
analysis of BucyrusErie Company, Cluett, Peabody &
Co.,
New
Southern
California, and
&
Oppenheimer, Vanden
Co., 40 Exchange Place, New York 5, N. Y.
—
Bulletin
—
Columbia Broadcasting
Co., 640 South Spring Street, Los Angeles 14, Calif.
Low Priced Speculations
&
stocks.
Crane
Stocks—20
Memorandum
—
brief reviews of Cincinnati Gas and Electric
4, N. Y.
Common
Gas Co.
1953
26,
Bond
Co., 70 Pine Street, New York 5, N. Y.
and
tional
Field
"liim&Msan at the Union League.
Chrysler Corporation—Review—Orvis Brothers & Co., 14 Wall
Street, New York 5, N. Y. Also in the same bulletin are
Life Insurance Stocks—Bulletin discussing capital gain oppor¬
tunities—Eisele & King, Libaire, Stout & Co., 50 Broadway,
New York
March
1
estimated profits.
or
Richardson
Inc.—Bulletin—Gartley
Associates, Inc., 68 Wiliam Street, New York 5, N. Y.
list of 40 stocks selling
a
Investment
Inc.—Analysis—Glore, Forgan & Co.,
5, N. Y.
Street, New York 5, N. Y.!
Chicago
Credit—Discussion with three sample portfolios—
current issue of "Market Pointers"—Francis I. du
Rock Island & Pacific Railroad and
EVENTS
Co., 55 William Street, New
Limited—Review—James
Chicago Corporation
on
less than
Industries
been
&
or
a
Army.
Y.
Central Illinois Electric &
have
Co., 1 Wall Street, New York 5, N. Y. In the same
issue are analysis of "3-D" in motion
pictures, of Chicago
at
in
in
.
Sons, 173 Portage Avenue, East, Winnipeg, Man., Canada and
Royal Bank Building, Toronto, Qnt., Canada.
Co., 120
discussing
successfully used by
security dealers to obtain leads at low cost—M. A. Kates,
President, Mailograph Co., Inc., 39 Water Street, New York
4, N. Y.
" '
: •
;
that
Report—
40 Wall Street New York
Sales Force—Booklet
Your
pieces
Third
COMING
Pasquale
Canada Dry Ginger Ale,
Broadway, New York 5, N. Y.
Leads For
Patton
Colonel
a
the
4
Company—Annual
Foundry
corporated, 300 Montgomery Street, San Francisco 20, Calif.
for from 10 to
Relations De¬
Higher Yielding Equities—Tabulation—Sutro Bros. &
Get
&
booklet reviewing the his¬
tory and growth of the bank—First California Company In¬
partment, American Stock Exchange, 86 Trinity Place, New
York 6, N. Y.
mailing
Machine
as
Among tils citations were the Sil¬
ver Star, Legion of Merit, Bronze
Star and Purple Heart.
I
Bank of America—Comprehensive
Casualty—Sanders
Employers
Co., and
Dividends For More Than A Decade—Booklet listing by indus¬
trial classification common stock issues traded on the Amer¬
many
Co.,
Manufacturers Insurance
&
Avenue, New York 17, N. Y.
Newsom, Republic Bank Building, Dallas 1, Tex.
How To
Merchants
II
of
Secretary, American Machine & Foundry Company, 511 Fifth
Companies—Comparative
Insurance
financial statements of Trinity Universal, Republic Insurance
Co., Gulf Insurance
Co.,
unit
tank
and New York Fire Insurance Co.
King & Co., 61
Broadway, New York 6, N. Y.
Dallas
World War
!
liston, Bruce & Co., 530 West Sixth Street, Los Angeles 14,
Calif.
Also available are memoranda on Globe & Republic
Outstanding
Debts
late General
under the
a
American Equitable Assurance Co.—Memorandum—J. R. WilCanada
A graduate of the United States
Military
Academy,
he
served
Co., 14 Wall Street New York 5, N. Y.
memoranda
Heid, Jr.
P. Heid, Jr. passed
away March 22 at the age of 34Col. Held, was a Vice-President
of The Robinson-Humphrey Co.*
Inc., of Atlanta, Ga., with which
Col. Henry
^
Stores Corporation—Analysis—J. R. Williston, Bruce
Co., 115 Broadway, New York 6, N. Y. Also available are
analyses of Goodyear Tire & Rubber and Willys-Overland
will be pleased
the firms mentioned
CoL Henry (Pat)
&
&
understood that
•
•
Allied
Recommendations & Literature
It is
projected to 1990
.
•
&
March 26, 1953
The Commercial and Financial C7irontcIc...Thursday,
(1316)
Number 5206«.. The
Volume 177
Commercial and Financial Chronicle
goods, will not the de-
fense
Defense Economy
With Private Enterprise
Reconciling
a
'9L
Lamont University Professor,
discussing long-ran problems created by an
extended defense program, reviews questions which must be
answered, before adequate conclusions can be arrived at. Holds
continuation of a large defense program will limit use of fiscal
policy to control inflation, since it
?
real savings.
be reconciled with a free economy depends on public's willing¬
taxes or pot
defense program
total
steady rise in prices?
raise
the
trade
unions.
answer
supply
To
great.
bring
over
a
this question is,
to
demand
an
pected to reach
power
pushed
is
economy
for
of
This
create
the
orders.
be
in
found
controls.
the
of
government
shall
I
problem is to
touch
ply of consumer goods and the de¬
mand for them. If, however, the
defense program
their savings into government securities
tax
revenues
comes
or
is financed out of
savings, the in¬
of individuals and corpora-
tions after taxes and savings
will
the
deter¬
second
place, revi¬
thinking have led the
be
to
es¬
level of defense
reduced.
This
change reflects the fact that dif¬
ferent parts of the defense pro¬
goods. Hence, it (5) Within two or three years will
there not be a drop in defense
might look as if the production '
of defense goods would introduce
spending and will not such a
consumer
lack of balance between the sup¬
to
services
In the
spending
point presently.
in
the ability
they want to order and
timates of the top
this
on
into
ability of industry to fill the
sions of
wage
changes
war upon
armed
mine what
a
the solution
goods. But they will not be mak¬
ing
the
of
of
power
will
farther
and
revolutionary
technology of
goods and thus
bargaining
plateau has been
a
farther
the future. This reflects the effect
extent the
will increase the
some
problem, but I do not think that
receive incomes which will
enable
them
to
buy
consumer
Concludes, whether size of defense program can
1
| ;
to pay
ply, and will not the excess of
course,
budget, but contends direct controls of materials or prices are
not needed as long as defense is financed either by taxes or
ness
very
about
will be difficult to balance
bargaining
such
consumption outrun the sup¬
"Not necessarily." The people who
make
defense
goods
will,
of
Harvard University
The
unions in
of
The
Prof. Slichter, in
*
economy.
mand tor articles of ordinary
demand
SLICHTER*
By SUMNER H.
-
y
gram
reach
will
their
at
peaks
quite different times. In the third
place, the revised views have put
I do not know whether or not
the date of the eventual drop in
there will be a drop in defense
defense
spending
farther
and
spending in two or three years. It
drop bring about
recession?
a
farther
has
usually
such
drop
a
been
will
that
assumed
This
occur.
sumption, in turn, is based
as¬
future
and have
estimates of
the long-
into
raised the
of
level
run
the
defense
spending.
upon
from next year on) it be reduced below their incomes the additional assumption that the The more remote dates estimated
for the expected ultimate drop inthe
indefinite future, - with the should be possible for the stand- before taxes and savings by the rate of defense
spending will rise defense
spending reflect the same j
necessity of producing the, huge ard of consumption to resume ris- amount of the cost of the defense from the present level of about!
reasons that have led to the be- •
quantities of defense goods needed ing at the - "normal" rate. In perprogram/ Thus, v the,' demand for $50 billion a year to $55 billion or
ginning
of the
>
for
the cold capita terms, this is about 2.5% the non-defense goods will not be
A
„inn,nR or
™ plateau
niarpa„ to
Tft be put;
miT
and farther
fu-{
■war. i I wish to: a year.
,,'V
%•; v.1;..
.;•/
raised by - the? defense program: even $60 billion a year. Then the farther
farther and
farther into
into the
the" fu-'
The United States is
'
faced, for
perhaps
'
•
..
^
discuss
«
some:
*
a
(2) Does the fact that the defense
problems created : by .' the:.
-
defense
t>r
.
q^j
and
gram;
some
i
probable :
...
fects
:
its
of
economy.
v
;•
discussion
ef-:
-
on :
-
;
the.:
My :
j-
will
be based upon
the
assump-
—
t*i
_
technology,
_»_"
•:
j;__
.
If®1jSfif1
i
*
suffice
tures
out of taxes
nanced
defense
bdhon.
$50
annual exppicur. Up0n the rate of technological
will be at ap- change> then the answer to the
isaddiho^ assump-
that there will
tion
.
or
by other
tion.
of
these
for
{1) Will the
occurred with
larity.
when
of science and thus,
indirectly, the demand
outrunning
is
/
TThc
In the first place, the time
to
ni-nviHpd
this auestion is,
thp
This is not
an
EniS
a
vear
kSt
many
have happened on the graduate industry. Hence, material controls
^vel, but it has happened at the were necessary, and undoubtedly
eSuf
the
stanS- under-graduate level.
any
of scientists and engineers in the
country. In particular, it is likely
toe made in defense expenditures, to increase greatly the number of
the total annual growth in the able your.g women who go into
■productive capacity of the coun- science and engineering
fields
be true that no
increase needs to
If it turns out to
further
•try will
be available
for private
and
investment,
Consequently, from now on (or
consumption
that for purely conventional reasons have been
young
women in
careers.
(3) If
fereace, Detroit,
Mich., March 21^ 1953
on
page
40
offer to buy, or a solicitation of Atl
made only by the Prospectus.
of such Shares. The offering is
Pacific Lighting
a
are
overlooked by
planning their
large Proportion.ofpeople
engaged in making de-
the banks.
resort to
If the above
conditions are met, the
supply of
goods and the demand for goods
will be roughly in balance. Hence
controls of prices or materials will
not be needed.
What
Price $100 per
in-
a
the
delay for a
discussion of
high-employment
Stock
Value)
share
(Plus accrued dividends from
April 1, 1953)
be obtainedfrom any of the several under*
underwriters are qualified to act as
which the Prospectus may legally be distributed.
Copies of the Prospectus may
writers
only in states in which such
dealers in securities and in
Blyth & Co., Inc.
The First Boston
Dean Witter & Co.
Smith, Barney & Co.
W. C.
Corporation
Glore, Forgan & Co.
& Co.
Lehman Brothers
Harriman Ripley
Goldman, Sachs & Co.
Incorporated
Stone & Webster Securities
A. C. Allyn
Langley & Co.
■
Central Republic Company
'
Corporation
White, Weld & Co.
A. G. Becker & Co.
and Company
Incorporated
Incorporated
Hill Richards & Co.
Elworthy & Co.
(Incorporated)
Lauronce M. Marks
& Co.
Bateman, Eichler &
Co.
Lester, Ryons & Co.
Spencer Trask & Co.
Brush, Slocumb & Co. Inc.
Davis, Skaggs & Co.
Shuman, Agnew & Co.
Crowell, Weedon & Co.
Irving Lundborg & Co.
March 24,1953.
Co.
William R. Staats &
Schwabacher & Co.
J. Barth & Co.
Sutro & Co.
I prefer to
minutes
wages
(Cumulative, Without Par
about the need for wage
controls?
few
Corporation
$4.75 Dividend Preferred
consumption in the United
it is possible, however,
has already made itself felt, defense program will, in
—
large
spending cannot
Continued
200,000 Shares
did much good in quickly chan-
that the the
nehng
materialsneeded
and equipment
in
directions
by the de¬
States
the long fense program. In a period of
The defense program is today tak- rUn, actually stimulate the derapid increase in defense produc¬
ing about $33 billion more output velopment of technology. This is tion it is possible that price con¬
per year than it was taking before the result that I expect. It is true trols might do
some good, too,
Korea.
If this rise of $33 billion that the defense program has inprovided that they were not too
in expenditures had not occurred, terfered with some basic research drastic
and
did
not
limit too
a
more
or
less
corresponding and that the armed services have severely the incentive to increase
amount of
product would have failed to work out personnel poli- the output of needed goods. On
been available
for consumption cies that have not interfered with the other hand, the recent price
and private investment. One can the training of young scientists controls in the United States were
only make a rough guess as to the and engineers. I believe, however, imposed so late and at such a high
actual amounts because the large that these impediments to the ad- level
that they had only very
demand for defense goods has put vancement of technology are off- limited effect. I realize, of course,
the economy under pressure and set by other effects of the defense that there are some important ex¬
has
probably made it operate program. This program
makes ceptions to this statement. Copper
closer to capacity than otherwise enormous
demands, almost re- is one of them. Perhaps it was just
would have been the case.
In gardless of cost, for new types of as well that price controls were
the absence of the defense pro- goods that industry could not af- imposed
tardily and that they
gram,
employment might well ford to buy, or, at least, could not were unable, therefore, to dis¬
have been around one million less afford to buy in large quantities, courage the production of many
than it is, and the total national Thus,
the defense program in- forms of goods.
product between $5 billion and $6 creases the scale of development
After the buildup of the defense
billion less than it is. Hence, the work and accelerates its compleprogram
has been accomplished
defense
has probably tion. Furthermore, the great de- and after the plant, equipment,
program
cut the product available for pri- mand for scientists and engineers,
and labor force
have been ad¬
vate consumption and investment for which the defense program is
justed to the dual needs of de¬
by around $27 or $28 billion a partly responsible, will enable the fense and private demand, neither
year.
The part of this loss that physical sciences and engineering material controls nor price con¬
comes out of consumption is per- to compete more effectively with
trols are needed
provided, of
haps $22 or $23 billion a year, other occupations for able young course, that the government col¬
Hence, the defense program has men and women. Thus, the long- lects enough in taxes to keep its
forced us to cut our standard of run effect of the defense program
budget balanced or finances the
consumption by around 10%.
is likely to increase the number deficit out of real savings, not by
ard of
major
the training meet simultaneously the needs of
has interfered
of y°ung scientists and engineers, the defense program, and the more
This interference does not seem to 0r less normal demands of private
defense prograrn^upon
a
other kinds of capacities to
Ibeir
at
is
there
lationsj defense
ex-
was
offering of these Shares for saleyor an
offer to buy,
was not enough steel capacity,
aluminum capacity, copper capacity, machine tool capacity, and
approximately $50
The
the
he
uresent level of
exnenditures
spending
unless
Hence,
improvement in international re-'
scientific talent to be diverted equipment quite rapidly, there
the cold war
answer
regu¬
supply,
•
indefinite continua-
recon-
considerable
defense
the necessity of buying large
quantltles
new
kmds of future.,
eqmP"
ment
for of
the
indefinite
• The answer to this question is,
the defense program "No." Price controls and material
to retard the development controls are needed only when
prevent from basic research to work on
the standard of consumption problems of a more or less engiin the United States from ris- neering nature.
In addition, it is
ing at its usual rate?
pointed out that military service
of
tion
three years. As
opinions have been
_
I
or
sidered, three modifications have
development of technology. They" During the last three years, when
have selected eight questions reason that the necessities of de- the country was making an effort
brief discussion:
;
fense cause scarce and valuable to increase its military forces and
■
defenie spending have changed
in the last two
mn effect 0f
JS? ■■ will
international situa-
change in the
price controls, wage controls,
material controls?
the present rate , oi question must be, "Yes."
Some
rmpUot m ^ as. scientists believe that the long-
proximately
sumption
-
«
and that
on
equipment.and,
.
The answer to this
question de¬ non-inflationary methods, the de¬
Sunaer H. Slichter
tion that in
pends upon how the defense pro- fense program will not directly
/
gram affects the rate of techno- cause demand to outrun supply.
armed forces of 3,500,000 men (our j0gjcaj change.
If the program
(4) Will the indefinite continuaapproximate present number) yvUi jjas n0 effect one way or the other
/ tion "of the cold war require
..
ru
the:.
vj
ii
x*.
It:
estimates
further assumption is.made that ture.
a eThea higher
a artner
into tneof
program'
economic
run
.
ahove the supply of such goods,
There may be other reasons, of .after our military .forces have ultimate level of defense spending:
course, why the demand for non-I been pretty well equipped, the
,
reflect the DOWerful influence »
sumption * by - around
I® % defense goods may.at times exceed. lavel of defense spending will be of rapid changeg in the technology •
war.
It is
clear that
mean
that the standard of the supply: Furthermore, the de- determined by replacement needs
f JL ft
is becoming
b
consumption
at
any * future fense program itself may create
and that the rate of defense 5L, element of mere
mere replacements:
remap™
date will be about >10% less a demand for-private plant, and Spending will drop to: around $40
dh^ds> wfl! hi con*:
tifiilinrrittnt 'U7hir«l-i i ic finonnnrl Kw nr 4M.P; Killirxn r,
" " ,J
'
UCienSe demands Will DC
than
otherwise
would have equipment which; is financed: by or $45 billion, a yean ...
siderably less than has been
been
thev case
in -'.other' inflationary methods. But to the
/1 think,thafe the time, has come:
words,b\he 10% losTincon: extent that the purchase of de- to question this view of the future
sumption that we experience fense goods and. the/purchase of course of defense spending. It is
war
•' fnp nlcintc jnd Aninnmoiif nonHorl
il1- 1
SO 1 lliiPOrialll aic
today:Hkeiy':to:'bera'perma- :'he plants and'equipment needed interesting preview the way in
'|?,TeK chanfes
nci■*:v
<
; / to make defense ;goods are fi- which opinions about the future
the Ttry«TU-be u.nder
nent
loss?
has
reduced
the'
country's -standard
of conv
long-
the
of
-
■
•
Mitchum, Tully & Co.
Wagenseller & Durst, Inc.
Weeden & Co.
Incorporated
First California
Company
Incorporated
Stern, Frank, Meyer & Fox
Walston & Co.
10
The Commercial and
(1318)
therefore, the greater become the
The Basis for
Standby Controls
risks of
.against another
zation
Contending another
if it
war,
is likely to explode in
comes,
a
big smash, veteran elder statesman says if standby legislation
is not enacted, " all will rue this tragic needless neglect." Cites
to
put
before
on
a
the authority and
•would
another
war.
modern
warfare
machinery that
be
of
reason
go
into
effect
this
time.
They
gravest
Baruch
M.
Simple Issue
You face
to take the
we
elementary precaution
of writing into law now what we
know would have to be done in
event of emergency?
neglect this
vital
in
and,
of
risk
Or shall we
doing
the
to
if
does
war
inflation
toll
certain
needlessly?
I do
in
opposed
at
ernment
zens
But
time
of
I
peace.
all times
do
for
is
ours
to
the
placent
ever
duced
tanks,
terial
about
mittee,
the
com¬
threat
23,
the
United
peace
staff
nearly
guns
States
as
many
and
other
the
rest
of
pro¬
airplanes,
war
the
every
group
to
tional
peril
for
in
rush
we
a
critical
such
successful
to hold to
are
and how
mobilize?
questions
a
would-be
his
These
are
aggressor
calculations.
delay
in
must
The
our
the
two
any
key all
longer
the
mobilization
the greater must seem the
aggres¬
chances
success,
is
to
act
serve
as
librium
so
time
no
mobilizing
hits
have
not
Western
war
a
comes
year
while
two,
or
"...
will
we
Europe stems the foe, to
debate what
should do. There
we
not even
may
'
-
another
lost
be
whatever
us.
If
*
would
against
be
Pearl Harbor
a
blow which falls upon an out¬
—a
.
the-economy
The
which
the
supply
The
pray
This overall
forced
by
controls
Due
Who
all
in
big
a
of
upward
smash.
be all but obliterated.
where
knows
this
not
let
Congress will
big smash
not be
a
the
and
does
the
of
tragic,
said
there
are
the
wartime,
all
until
the
what
see
made
might
World
I
since this nation had
mobilized
for
But
world
two
Korean
total
is
What to
principles
of
becomes
to
the
what
that,
forces
will get what they
needed, with the least
dislocation
This
requires
resources
money,
over
other
prices,
costs
to
is
scarce
purse
the
or
most
essential
dealers in securities and in which the
Prospectus,
legally be distributed.
may
must
or
be
internal
our
These
W. E. HuMon St Co.
Ktache St Co.
laws
Salomon Bros. St Hutzler
WiHiam Blair Sc
Company
Shields St
Auchincloss, Parker St Redpalh
Central Republic Company
Company
objectives
of
agencies
is
Fahey, Clark & Co.
Singer, Deane Sc Scribner
Corporation
Rodman & Linn
Let
Dreyfus Sc Co.
Stifel, Nicolaus & Company
Anderson & Strudwick
act
Ferris Sc Company
Hancock, Biackstock & Company
Mead, Miller & Co.
March 26, 1953.
•
the
the
cannot
.mobilization
books
the
in
Beer and
Company
Goodwyn & Olds
Newhard, Cook & Co.
me
the
in
frantic
a
the
effort
to
equilibrium
and
the
administering
being
before
the
,*•
.
emphasize
bombs
are
par¬
falling
ing mobilization legislation.
To wait is to die. To
If,
and
-
,
other
stable
is
door
until
open
To
the
horse
morally
When
as
IS
fiddle
well
as
invoke
you
Set
wrong
economically.
an
emergency, your
Up
Yaur
is
across-the-
Oil
el
cial favoritism
is being shown to
business
labor
to
or
or
to
any
to
or
agri¬
special interest.
A Just Yardstick
wait is
,
;
.
In
contrast, under the wait and
fiddle approach, you begin your
mobilization
moral
omy
base.
by
destroying
In letting the
unavoidably
permit
special
advantage
econ¬
some
groups
over
others.
Each segment of the econ¬
is
given
a
grievance
which to justify its own
ary
with
inflation^
demands.
The
•
over-all
ceiling,
some
to
lose
lose the moral ground
And
pediency with which to resist the
groups.
of
a
be
better able
hearings,,
your
a
num¬
conflicting arguments have
In
give
to
so,
do
government
weighing
our
govern-,
be
not
misled
by
raised against
controls
in
peace¬
are
time.
These
arguments do : not
apply to conditions of war.
The
law
of
supply
wonderful
for
its
one
thing
and
demand
is
a
thing, but it needs time
adjustments.
you
Indirect
In
the
war,
do not have is time.
pressure
Controls
Production
answer
peacetime
may
to
Not
Enough
-
the only
inflation
in
a
seem
economy.
production
- you
But in
war,
strive
most
valiantly to increase—of military
things—aggravates 1 your
infla¬
be
standard but ex;-
demands
and
aiguments that
will
clamorous
of
economy under normal conditions.
left with
degree of cruel in¬
also
less
and
—
the powers it needs to cope
with wartime conditions. You are
not writing a bill to give the
govT
eminent
power
to
control • the
enforcing this principle. You tionary
some
future
intended
are
flation—again needlessly.
The pattern of any mobilization
casualties,
prices
of
more
quickly
—more
legislation
is
for
no
A
ment
lives—needlessly. To wait is
there
tanks,
more
presented.
to
that
Powers
these arguments one thing should
be kept in. mind. This
also
certain
defense
budget.
would have gotten,
fewer
During
been
their
make
our
tax
have
being
based upon the economic rela¬
tionships that prevailed before the
you
Peace
we
lower
ber of
rupted,
dooming
with
the
tor
lengthening the struggle for vic¬
and
Not
stiff
might
to meet whatever trials lie ahead.
tory
means
and
we
balanced
a
the
ceiling
national debt. We would be facing
less of a problem of adjustment
the
needlessly slowed which
fi¬
of
over-all
finance
to
planes,
with
profiteer from the emergency. If
you allow that balance to be dis¬
to
mobilization will
in-'
the
cities and
our
imposed
able
more
real
our
earn¬
"
your
get out of hand before acting,
you
taxes
needless
outbreak
an
other weapons
-k- —»
.>.
action obviously
treats all segments of the economy
alike. None can claim that spe¬
culture
higher
charitable
levied,
War
mobilization
...v-k
first
very
of every
aggravated
the
Certainly
ceiling at the outset of
economy
the
and
four
prices
one-fourth,
increase in
This
and
War,
effort with
and
wait
the
of
went
—
power
by
levied.
been
been
deliberately keefSs the
stolen.
the
fault
soaring
deep in
you are
take
powers
months
buying
under
increases
emergency, enables you to estab¬
lish the principle that none shall
make certain
four
dollar
on
had
trouble before acting. One course
locks the stable door promptly.
The
the
not
which
were
Korean
which
choice, in short, is between
waiting until
omy
that,
in
to
gave
authority than it
was
months
the Ad¬
states.
have been lost.
never
You
nancial troubles of
caused
*
re¬
time
divide
the world is aflame before enact¬
be
Byron Brooke Sc Company
Sweney Cartwright Sc Co.
will
ticularly for those who would wait
I ucorporated
Strader, Taylor & Co., Inc.
war
Wait and Die /
E. F. Hutton St Company
Francis I. duPont & Co.
Scfcwabacher Sc Co.
of
yi',-
nucleus
until
Interstate Securities
bitterness
on
disruptions
equitably by aH
unless
are
to
The Milwaukee Compauv
Fulton, Reid & Co.
MerrM. Turben Si Co.
costs
emergency breaks out*
(Incoi'jKwaiad)
Julten Collins &
Company
fattest
ranks.
realized
Blyth Sc Co., Inc.
the
pull but
needs, without
The
shared
that what
see
biggest
profiteering.
rents
wages,
prevent need¬
not to
goes
the
and
credit
over
less inflation and to
Copies of the Prospectus may be obtained from any of the several under¬
writers only in states in which such underwriters are
qualified to act as
takes
,
It
for
',
;
Committee
which gave
the
power
colleges
stitutions; it
dog
a
in
our
priority over desire; it requires
the power to commandeer, higher
controls
of
this
meaning
ings and savings; it weakened all
civilian
to
allocating
surviv a,l
so
the
without
our
chase
for
requested
inflation cut the value of all
you
by the government's failure to
and
what
matter
no
Only then do
fighting,
Priority
more
unused
that
is
economy
sub¬
after
called
wiping out the total
ac¬
wait
acting before serious harm is done
how things change, the
or
of
to
Korean
mobilization.
action.
defonse
tail. You then have
Do
ing. The object is to organize the
so
the
wild
a
own
chase
cover
unchang¬
are
until
control.
after his
underlyinga
mobilization
dis¬
Fiddle
is
what
was
Korean
Congress that those
act. Your whole mobilization then
v
Know
sought.
made
course
the
bill
a
Executive
balance.
course
the
which
remember,
were
revenue
other
fiddle
out
never
taught
The
and
we
and
wars,
have
war
and
for
is
authority to control prices—
over-all
dictate.
without
over-all
That is the sound
before.
war.
fashion,
the
Wait
choice other than trial and
no
error,
orderly
of
ministration
over¬
be
have
Committee
Fortunately,
inequities
can
that
a
defiance of the very
of the word priorities.
we
have
War
powers
bill
this
slashed the
30-odd years ago—not
sense
todays During
to
start
the
neces¬
needs
who
and
war
will
piecemeal
stabilize
correct
adjustments
emergency
legislation
argument
to
defense
as
tion.
That
the
terrible
you
Korea
Committee
know,
you
race.
adjustments in the
both
These
in
that
when
of
you
this
world
mitted
a
procure¬
ceiling will always be
and
in
controls
contend
may
wait
then
for
need
the
under
are
certain
until the
come
is already under
whole mobilization
of
time
wrote
Some
have
I
some
breaks
war
last
prices.
needless
you—and
among
it
inflationary
an
officers
sary,
Some
heard
in
emergency.
virtually
Lesson
conflict. The
contracts
;
in
happened at the outset of both the
bal¬
quickly and at
more
pressures
neglect.
life.
These
of
is
race
your
on
some
proceed to let
you
unless
skelton
agency
the
it
those
served
as
pressure to get production started
regardless of cost. You ease these
is
there will
come,
this
rue
day
When
ment
alive who will not
person
bitterly
legislation
stand-by
enacted
had
under
economy
the
heavy handicap.
As
be enacted.
can
and
The
credit
lower cost to the government than
Cities may
If
the
and
higher taxes,
if prices and wages are spiralling
explode
and
Price 100.90% and accrued interest
by
they
a
an
of
.us
all \
war—and
next
taxes,
April 1, 1983
monetary
or
this, the delay that will
makes
prevailed.
ceiling must be rein¬
and
as
be
can
conditions
demand
it
invoke
properly,
least
at
inflationary
in
date
enact
putting
to
that action will not
all
it will be avoided—is likely
need when
April 1, 1953
normal
and
last
ceiling
before
under
With
Big Smash
place
way
the
of
as
be
administering
other
contracts.
necessary
Dated
the
prices, all wages, all rents and all
costs
to
realize
selfishness. It is vir¬
on
books and
first
over
fails
you
impossible
over-all
across-
an
na¬
selfish'
own
the power to act is on the statute
the
put
ceiling
your
armed
Mortgage Bonds, PA% Series due 1983
tually
the
requires
to
inviting
the
Selfishness
on
will
you
premium
prior to the
powers
control,
happens
First
This
anced
nation
Georgia Power Company
before
existed
mediate and concerted action.
sound
$16,000,000
that
quickly
an
*
promptly
lying post and which, while hurt¬
ing us, sounds the alarm for im¬
The
to
of
courses
things first, along with
The
offer
not,
is out of hand, to pre¬
far as possible the equi¬
economy
should
offering of these Bonds for sale, or an offer to buy, or a solicitation of
buy, any of such Bonds. The offering is made only by the Prospectus.
general
its
Congress
whether
ensue
is
and
an
law,
allocation
advance precaution
every
We
This is not
two
of
exploit
adequate standby mobilization
an
Choice of Policy.
of
One
the
Without
certain
make
to
must be done.
of
Premium
If
the
prompt institution of priority and
and
which
before
emergency.
zeal
our
needed.
around
long
double
America prepared
long will it take America
not
effect
advantage.
action is possible. The wise course
rupting
is
is
the
they
Prices sky¬
scarce.
is out of control.
economy
in
To Prevent War
materials
corner
It
nizing
well
to
seems
normal
believe will be
this Administration—while recog¬
How
the
or
free economic system, we must re¬
ma¬
world
But, more than two
elapsed before this level of
production was reached.
sor's
1953.
to
the policy of wait and
has
workings of
supply and demand suddenly go
haywire. Speculators and hoarders
minent,
gar¬
fast
of
In brief,
fiddle
must recog¬
chances
first decision.
very
breaks
im¬
The
a
be?
peak of the
of
by Mr. Baruch before
Banking and Currency Com¬
March
At
in
Chronicle... Thursday, March 26, 1953
would
we
we
the
war
combined.
to
statement
Senate
from
bv
set
When
years
likely
*A
the
can
general
enemy
the
as
our
forget two facts about
war.
conflict
gov¬
world under siege.
a
will
the last
before
converted
No
war.
our
energies
us
sur¬
fully this time-lag
holding
blitzkreig. If
to
have. And that is
productive
been
military
am
themselves.
hardly afford to be
can
to
our
plotting
enemy
can
he
a
do, in fact, increase the
aggressor's
which
danger
with
is
rocket.
Still,
in
we
is
of
overwhelm
have
between
be only one
any
destruction
in government
doing what private citi¬
can
economy
should
not believe
controls
We
increase
so,
add
war,
make
of de¬
measure
of dead and wounded
and
free
us.
gigantic
simple issue. Are
a
eco¬
practices and
perhaps the
entails
can
plan that
to
A
relaxed
source
There
future time of peril.
some
difference
war
menaces
Bernard
in¬
voked without
•delay at
free
our
ways,
normally
they
be
cherish
we
very
what
books
so
could
this
be
the
on
.statute
re¬
because they are so
opposite to the ways of war. But
would
placed
disciplines
a peaceful nation
military production differ com¬
pletely from the workings of a
free economy. That may be one
nomic
ac
sim p 1 y
that
quired to shift
would
powers
state.
nize
in
to
of these
None
de¬
thinking
us
mobilization
rison
that
The controls and
to
one
—nail
economies—
whole
into
overcome
our
taken
burst upon us.
come
the
The Enemy's Plan
emergency
were
the
that
know
requires
everything.
war
near-war
fense
of
but
overwhelm
times,
with
another
now,
We
could
enemy
himself
mobili¬
our
have to turn ourselves into
mobilization not alone of military
forces
to
necessary
cope
or
pro¬
basis
you
stand-by
no
lude
To
high taxes levied, the budget might have been balanced.
The legislation
in
gap
could
in
Wants mobilization laws kept "on the books." Asserts, if, on
outbreak of Korean war, over-all controls had been imposed
poses
that
would be to
war
prise blitz attack.
principles underlying sound mobilization, which includes allo¬
cating our resources "so survival takes priority over desire."
and
the
narrow
so
By BERNARD M. BARLCII*
The surest deterrent
war.
Financial
tend
can
pressures.
that
taxes
be lifted
Those who
or
interest
high enough
so
con¬
rates
that
direct controls will not be needed
Continued
on
page
45
Number 5206
Volume 177
.The Commercial and Financial Chronicle
..
The New Administration
(1319)
because President Eisenhower has
ing that if
said, with a very wide measure
of public support in this matter,
credit, certainly
in
as
And
Foreign Trade Policy
By SAMUEL W. ANDERSON*
Asst.
others, that
is such
a
way
must proceed
we
to make it
as
pos¬
sible to reduce the amount of
requited assistance which
been
Secretary of Commerce for International Affairs
giving
to
the
un¬
we
have
world
and
eventually help to create
a
Secy. Anderson, in pointing out foreign trade policy is linked
tion
entirely
with
eliminated.
Thus,
prospect at
some
political, financial, humanitarian and social matters in
international field, discusses facts which must be taken into
consideration in studying
plans.
and
and formulating
of
Administration's
new
foreign aid.
our
which
relief
giving,
Stresses problem of imbalance between U. S. exports
imports, and its relation to
in
a
it
be
can
do face
we
from
of money, but also
in which the rest of
V situation
sort
important role of reviving U. S. capital and know-how abroad.
the
away
the world will have to be in
Indicates
the
point, not only
taxpayers
as
situa¬
of
balance
with
some
C
did not and
am
of
me
America
has
the
able
recently be¬
only
clear
focus
leadership: there is, therefore,
long and tried tradition to
as
and
no
basic
a
however, to
Can
import
tinue to sell at
of
also
riod
guidance. The
$2 billion in their
had
tailed
tional,
a
mercial
economic
r e-
fairs of
President
country's
best
served
by
having that potential balance
oc¬
at
relatively high figure
a
we
prepared
are
to
or
in
which
was
States
an
This
Plan,
$36 billion,
dispersed by the
without
receiving
ac¬
results of the assistance which
have
given
to
friends,
our
we
espe¬
of this
away
United States. It
that
it
has
money
interests
the
serve
to
seems
done
in
so
critical
and
Cabinet to
period.
Nevertheless,
not too pre¬
payers'
of
me
money,
it
a
low
of
the
closer
move¬
and
closer
in
the
Western
of
part
behind
far
are
States
their
in
the
and commercial
the
suggests that there is sound
rea¬
why the interests of
own
son
most
people
is
tax¬
it has
come
from
every
one
.as
our
by
rather
a
the
of
benefits
so
these
tainly have paid lower taxes. For
creasingly spread, and so that the
progress of mankind in his ma¬
the
terial
to
questions will emerge with
clarity as our active
of study and thought goes
work
'
on.
if
and
had
it,
not
each
$240 for
Obviously, with
Considerations in Formulating
Policies
look
us
been necessary
ing policies. I think in this way I
avoid giving you the
can
conclusions
that
sion
reached,
facts
these
as
impres¬
been
had
cer¬
are
our
tax structure
our
a
great deal
not
to
not
give
is
suppose—which
realistic—that
this
it. Let
also
us
probably
un¬
our
imports during
period would
have remained
tainly well known to you in the
$78 billion. The world would have
field of international trade. I have,
been
therefore, elected to spend a brief
time discussing one aspect of our
would have
international, economic and com¬
mercial
policy; namely, relation¬
ship between exports and imports,
in
balance
less than
There
unhappines
world.
the
of
this
For
pur¬
I have brought with me two
charts which depict the facts as
all
we
look
at
the
close
of
the
as
way
shows
in
since
as
the
for
us
the
simple
a
a
was
Obviously,
cannot
one
when
sell
same
"period, the United States imported
and
paid for $78 billion. By these
dollars, therefore,
abroad
were
63%
our
of
some
fore
to
to
friends
pay
us
for
paid for in
be
our
address
efforts
by
been
than
worse
this
imports in some
our
preciable
would
measure,
have occurred because
our
in
abroad
Secy.
were
Anderson
be¬
particularly
strength
them
billion
ap¬
not
surpluses to enable
and
to
Europe,
export
to
the
United
complished. Furthermore,
these
goods
have
been
of
their
and
own
operated
of
materials would
kept at home for use
strains
severe
ac¬
many
in
peoples
the
Thus, to the
the
under
which would
absence
have
of
aid.
extent that our im¬
suggested
year—pick
figure in that range
a
by
we
or,
higher range—the
indeed, in
shown
I
know
by
this
that
chart
the
is
affected
picture
an
the
-exporters.
Export Managers Club of New
New York City, March 17, 1953.
I
think
we
must
all
restudy
it
Asia
to
There
exports
through
we
such
from
began
the
Co¬
Even
this
to
chart,
expand
as
it
needed
raw
machinery
our
Obviously,
port much to
thus
our
of
the
globe. As
¬
defenses
massive
own
also
demands
efforts
in¬
created
for
overseas
materials and goods
the
chart
you
because
situation, it
and this
was
Furthers
see.
of
our
tight
own
necessary
for
us
to limit the amounts exported be-*
cause
ex¬
of the
work
imports,
the
country
more,
at
inflationary forces at
home,
as
well
necessity for conserving,
in large measure, came from other
areas
build
to
in
on
equip¬
it could not
us;
efforts
Our
this
appre
improvement in the
an
proving length of the import ba.v
ment. It needed to get back on its
feet.
are
is, in part, responsible for the im¬
materials;
and
course,
unrequited economic aid
abroad.
raw
European friends could command.
Europe
was
getting back
into
business. It needed
themselves.
of
they have contributed
creasing
preliminary assist¬
through the use
reserves
as--
and
Europe
strengthen
programs,
over-all
gave and
available
in
directly comparable in their fiscal
started, however,
see
pe- •
upon
Mar¬
t...
Continued
.
as
the
for
ouv
on page
41
This advertisement is
an offer to .sell nor a solicitation of offeis to'bify
The offering is made only by the Prospectus, *
neither
anyof these,
siclitiiie^f.
March 26,
NEW ISSUE
1953
100,000 Shares
Georgia Power Company
$4.92 Preferred Stock
•
Cumulative, Without Par Value
11
this
studying
In
the
continuing
rounds
.which have been
last decade
or
going
of
debate
on
for the
Price $ 102.50 per
the voice of the
so,
has not been heard in
corner
of the ring occupied
exporters
the
by the importers.
is
be
to
a
Why is this? I
sought in
the traditions
States before it be¬
United
of the
large creditor nation
and
and,
the world leader. In the 1920s
indeed, before that, our industries
and our businessmen were steeped
in
share
plusjapcrued dividends from April 1, 1953
the most obvious answer
suppose
Cnpies of the Prospectus may be obtained from any of the several underwriters
only in Stales in which such underwriters are qualified to act as dealers
in
securities
qttd in which such Prospectus may legally be distributed.
selling. The successful business¬
often than not
man
more
man
who succeeded
was
the
in selling in¬
creasing amounts of his products,
or
The First Boston
mining larger and larger quan¬
tities of
stantly
more
materials. The
the
of
true
was
be
raw
wished
that
so
farmer.
to
his
sell
He
con¬
more
income
Corporation
^
same
Goldman, Sachs & Co.
Merrill Lynch, Pierce, Fenner & Beano
would
it was
certainly
Wertheim & Co.
Drexel & Co.
:
greater. In those days,
perhaps
not
not
necessary,
deeply about whether or not his
increasing
ing
that
Dick & Merle-Smith
Hemphill, Noyes & Co.
fashionable, for one to worry
customers
could
command
him
resources
about
to
credit
businessmen of two or three
decades
ago
The
the
buy
individual
.
and
the
York,
will
a
matter, it has puzzled me that in
old risks, but I think it is fair to say
•story to all of you. Nevertheless,
you
ance
of
Administration.
ECA got
entered
active
most
department was constantly warn¬
Now
been
our
as
and
world's
We entered
friends
our
ciably to
operation
the
military aid programs to
our
that
Economic
dollars
Korea
promoters of imports ought to be
would have been further reduced.
have
in
of
position
of change.
project
own
your
exports
would
correspondingly,
economic
increasing
made
came
shift
States
various
a
in¬
creasing quantities .from him. It
is true, of course, that his. credit
ports
war—
from
world
Then
whole
United
thus
and
available.
the
the
buy
the
*
amounts,
ques¬
the
to
for instance, is
trade,
per
the
of
parts
in¬
doing. As the
move
Americans, what must
our
to
and
balanced at $17, $20, or $25
to be
friends
States in the volume actually
other way. During the same
period,
*An
our
exports, leaving 37%
billion
$45
or
able
have
because
result
would not have had the economic
is not paid. During the
one
would
the
course,
years
counter-balanced?
of
If
to
together
policy of economic isolation. If
this, in fact, the genuine prefer¬
came
of
seven
through 1952 this coun¬
this
been
ager's office almost continuously.
Actually,
be
would
man¬
abroad,
goods and services
total value of $123 billion.
How
indeed have
the export
chart
exported
try
in
first
The
can.
that
First,, let
situation
war,
we
from 1946
.of
them.
know
would,
than
chart
.a
resulted
the
oft!
in¬
be
can
closely
more
ex¬
actually sent abroad.
we
between the United States and the
pose,
instead of
meant
it
but
porting $123 billion in the sevenyear period, we would have ex¬
ported $87 billion, or about 30%
and the whole movement of trade
rest
alright,
capacities
world, at least, shall
way.
in the interests of
and
forward
ence
country, and that we had de¬
cided
talents
do?
it another
at
which must be taken into consid¬
•
States.
that this aid had
Supposing
studying and formulat-
repre¬
than this for most of you.
Let
today to discuss some of the facts
eration in
cer¬
woman
United
is, it represents
more
thought it might be profitable
I
it
as
it
period,
the
us
necessary
would
us
every man,
in
child
and
been
of
seven-year
sents
:
it
do
of
able
extraordinary and unprecedented
called
were;
pay
specialized
the
of
addition,
Aid
effects to
which
began
wide
cipitously in this field of policy¬
making as, indeed, in others. I
can
assure
you,
however, that
pockets
to
and
development,
of international trade,
expanse
that
a
served
at
from
indeed, the Western
whole will be far
and,
better
we
stimulating
economic
did
postwar rworld
significant
at
integration
which
clear
this
States
;
world, the whole
ties
tries
giving
prefer¬
world, the whole trend of de¬
velopment
in this country
and
abroad, especially in those coun¬
United
who contend that
United
toward
cially in Europe. I do not believe
many
one
no
genuine
a
balanced trade position
a
The
there
are
period of
a
economic, commercial and politi¬
cal
except
over
I have found almost
ment
the
it
from
a
friends
my
the
the
return
balance at
a
years,
intangible and obvious important
any
you
his
cor¬
Marshall
the
sources.
general,
United
they are politi¬
humanitarian
of
Eu¬
are
not involved.
for
adopted
statement
laneous
in the past
policies
increasing
,
to
Western
carefully and
move
be
try
figure.
upon
and
this
the British loan and other miscel¬
billion,
$36
of
chiefly to
a
plans
and.
dollar
quite handsomely.
prepared
answer
cn
local
the
trade
sist
given to what
will agree
is the part of wisdom of
it
that
the
future, it
should
we
look
reli¬
placed
intra-European
nomically-—it began to be evident
to thoughtful Americans that
help
was going to
be needed. General
Marshall, in June of 1947, made the
of
the af¬
country, but the
sure
achieved,
machanism
not
am
be
the
study must be
aid
he
riod
expresses
the
I
me
will
cept
and
sons,
to
into
whether
interest
ment
granted
but
man
In
emerged
for
not only commer¬
financial,
look
to
seems
period, the United States Govern¬
social, and cover the whole gamut
of our human life. For these rea¬
cal,
likely
we
visualize
cur
was
Successful
a
and, except for the United States,
in
pretty shaky condition eco¬
ence
only
are
same
is
if
di¬
ultimate
who
those
cial and economic,
During," this
ac¬
but
to
various
this
world
remaining deficiency. This aid
was provided chiefly through the
those policies in our
increasingly complex relationships
abroad. Indeed, these relationships
themselves
This leaves
billion to be
result
attempt
the
some
the
of
impact
ex¬
$13
responds, except for
more
policy, careful
own
our
monetary
which
dicate
unidenti¬
fiable deficiency of $4 billion, to
the
policy
not
had
you
irf
whether
rope,
one
To establish
have
to
to
rections
of
deficit problem
be
can
the
both
sources
high level? It is,
been
tion of how
our
s
difficult fields.
effect
going
describe
Thus,
other
where
Marshall
now
has
with
of
our
not
am
Figure?
us
which
before
certainly
what
for.
Low
High
a
relatively low
figure. In discussing this question
i
lationships
been
pe¬
between
gap
balance of $32
counted
and
own
reserves.
own
Or
net of
a
billion
from their credit operations
their
or
com¬
same
up
imports,
and
came
interna-
to
billion
$45
ports
respect
sources
currency "reserves.
the
de¬
policies
with
has
also, they used
Trade Balance Be
a
Achieved at
I
of
intra-European
aid
of
be
con¬
was
Should
•
a
pro
taxpayer—frequently
Need
to
in
the United States to supply goods
and services and the substitution
dollar
the
had
abo'W
came
reduction
a
which
ance
pretty heavy taxpayer.
The
advances, about
or
formulation of
proper
and
private "dollar
a
a
to
wants
that he
unrequited
pro
is
a
true
course,
Let
Fund
he
be
remember,
through
time,
from
escape
all
you
situa¬
a
now
that he must
if
all
other
many
the situation?
reassess
man
1948, Europe's relative posith u.
began to improve. This improve¬
ment, in considerable measure, rti
to
that
sure
Is it not
exporter
an
conviction
shall Plan swung into operation h.i
continue
why this kind of
tion has existed.
Interna¬
the
Monetary
billion. During the
$11
framework for
Samuel W. Anderson
from
from
the
Bank,
investment
of
serve
obtain
to
tional
world
of
tell
can
reasons
area.
come
would
bad
A and
had
consumer
buy from him. I
you
B
consumer
11
just went on assum¬
Robinson-Humphrey Company, Inc.
Harris, Hall & Company
(Incorporated),
Baker, Watts & Co.
Hendrix & Mayes
Incorporated
"
-
-
•
-
Tucker, Anthony & Co.
K
Stockton Broome & Co.
E. W. Clark & Co.,
Varnedoe, Chisholm 8c Ct;..
Incorporated
,
12
(1320)
The Commercial and Financial Chronicle,.
Opportunity in Mexico
By
.
HAKVEY
L:
SCHWAMM*
IBA Institute of Investmeiit BairiiHig
To
;
President, American Trust Co., New York
.
International banker, while expressing great optimism over
Mexico's future and noting unsatisfied demand for
capital in¬
vestments, warns American exporters of growing competition
for that market from the United Kingdom,
Netherlands, Ger¬
Since speaking to you last year
year I have spent a
time in Mexico,
visiting almost
of the Republic. I am
area
very
optimis-
t i
about
c
great deal of
economic
The usual
variety of credit terms
employed, ranging from open
accounts to sight letters of credit,
and
im¬
an
in
The
be¬
coming keen
Euro-
r o m
and
p e a n
Harvey L. Schwamm
Asiatic
nations
par-
ticularly from
of
lack
of
significant
countries as
such
the United Kingdom,
boxcars,
were
year
in
steam
their
beyond
expecta¬
beverages
together
tremendous
lubricants
and
greatest
is
Mexico
tions.
a
market for the American exporter
his
but
will
there
success
determined
with
fuel,
electric
power
equipment increased.
efforts and
abilities to meet the competition
from
the
restored
productivity
and
Brown
Raw
Materials, Needed
Mexico's industrialization proc¬
ess will still demand
large capital
Ewing
at
T.
the
Pennsylvania
with
of its
value
the
increase
small
a
purchases and
in
a
This
creases.
verse
create
may
trade balance but I
ad¬
an
am
con¬
slight decline in the value of its
fident it will be corrected
through
sales to Mexico. However,
the
purchases
can
for
years
a
se¬
pro¬
of
Merit
during
generally lower. * Trade
was
with
invisible services.
countries
European
1952
during
1952.
Latin
American
countries
declined in both exports and im¬
ports
compared with the year
as
before, with
favorable
a
balance
to Mexico.
American exporters must
recog¬
nize,
I
as
increasing
European
and
the
competition
the
and
they
meet the
previously stated,
in
recogni¬
exporters
be
offered by these
to
prepared
exporters.
investment
Favorable Exchange Situation
The
dollar
exchange
situation
in Mexico today is good. The ex¬
cessive demands for foreign ex¬
With Ft.
Waytte Sees.
(Special to The
Financial Chronicle)
FT.
change and the
rumors concerning
stability of the peso have been
completely allayed. The reserves
the
of the Bank of Mexico
above the
It
same
should
the
be
large
and the
tailed
are
period
public
a year ago.
that
noted
slightly
works
despite
program
financing which that
and
rising productivity
country, there resulted only
slight monetary expansion due
of the
to
the
credit
policy followed by
through the selec¬
the government
tive
credit
controls
of
of Mexico. Revenues
trade
reached
of
trade
of
payments.
No
to
an
from tourist
adverse
favorable
a
Bank
all-time
an
and corrected
the
high
balance
WAYNE, Ind.—Anthony W.
Sowers
Fort
is
now
conriected
with
Wayne Securities Corp., 808
South Clinton Street,
'tie
merly with Slayton
for¬
was
Company,
Inc.
Paragon Optical Stock
or
and, external
problems confront¬
ing the industry will be covered
by leading experts in business,
government, educational circles,
investment
will
Offered at $1
Share
a
have the
further advan¬
tage of meeting and exchanging
views with members of the indus¬
try from all parts of the country."
the
nouncement
of
preliminary
the
Institute
issue of 300,000 shares of
common
stock of Paragon
Optical Co., Inc.
at
restrictions
of
$1
per
share "as
a
the shares
are
an¬
was
made
early this
year
member
houses responded
enthusiastically;
and in view of the interest shown
and the requests for, reservations
the
originally established quota of
75
registrants for
the
first
year
group was successively increased
to 125 and then to 150
registrants.
Ultimately first, second, and third
groups
during the
will
same
meet
be
used
for
vent
a
rise in domestic prices of
such products.
Collection
Mexico
of
the
experience
in
to
the
rate
before
the
York,
with
as
one
foreign field.
•Summary
New
on
the
business
of
manu¬
Relations
and
Securities
Control
of
Securities
Down
to
of talk by Mr. Schwamm
Export Managers' Club of
New York City, March 17,
1953.
nomic Outlook."
and
medical
Thus
limited
and
ARIZONA
ophthalmic research.
Phoenix
far,
its
production
the
corporation
has
—
Joseph
vision lenses.
spherical
»•*
I
i
i
-
single
»
i
_
u
L.
Refsnes,
Ely, Beck & Co.
manufacturing to the
of
Company of Chicago;
Central
George J.
Republic
Company;
vey H. Orndorff, McCormick & Co.
Har¬
Refsnes,
CALIFORNIA
Los
R.
Angeles
Staats
Witter
6n
— Robert
W. Gale, William
Co.; Tyler G. Gregory, Dean
Co.; Robert Revei Miller, Revel
&
Wm.
D.
Andes,
D.
C.
The
1
■
J.
Murch,
Ohio
-
Wilson—Distrib¬
Glasgow,
Kidder,
Barnes,
Merrill
\
Ellis
—
Fenner
DeHaven
W.
Roderick,
W.
&
Beane;
Robert
Townsend, Crouter
&
Keen
Butcher,
Eutcher
Stein Bros.
Drexel
Pittsburgh
K.
&
&
Boyce; Edward
Co.;
John
W.
York,
Co.
Kirkwood
—
Cunningham
Kingsley,
Ralph
&
B.
Co.,
Cunningham,
Inc.;
George
H.
Jr., Singer, Deane & Scribner;
Richards, Jr., Kay, Richards &
S.
Company.
INDIANA
Indianapolis
SOUTH
Kenneth
S.
Johnson, In¬
dianapolis Bond and Share Corporation.
—
Spartanburg
A.
M.
Law
&
—
'
CAROLINA
Henry
J.
Blackford,
TEXAS
Dallas
Hugh
Bradford, • Southwestern
Company; John H. Rauschet, Jr.,
Rauscher, Pierce & Co., Inc.
—
Securities
KANSAS
Topeka—Arthur H. Saville,
Jr., Beecroft,
Cole & Company.
/Houston—James
KENTUCKY
Kessinger,
The
Co.
Bangor
White
&
—
Rauscher,
Moreland;
&
Underwood,
Neuhaus
&
Co;;
Philip
R.
Neuhaus, Underwood, Neuhaus & Co.; Ed¬
ward Randall, III, Rotan, Mosle and Moreland.
VIRGINIA
MAINE
,.
Bayless,
Inc.; C. P. Duson, Jr., Rotan,
Douglas E. Johnston,
Hess;
Joseph
Rice
Neubaus,
and
Fridley
B.
Louisville—Thomas Graham, The Bankers
Bond
L.
Pierce & Co.,
Mosle
Lexington — Thomas
Kentucky Company.
Cornelius
J.
Charlottesville
Sullivan,
Pierce,
Drummond, Inc.
Horner &
MARYLAND
Coleman
—
Peoples National Bank.
Lynchburg
E.
Trainer,
v
James
—
L.
:
•
.
Morris,
Scott,
*
Mason, Inc.
t
Baltimore—C.
Bros.
(&
Baker,
Prevost
Boyce;
Watts
Boyce,
Joseph
&
Co.;
Jr.,
Wilmer
F.
Barton
Richmond
Stein
Butler,
Harvey,
Hagan,
&
Hooper,
Group,
Jr., Mead, Miller
Peek, E. R. Jones &
Price,
Alex.
Brown
&
Co.;
Co.;
Donald
W.
S.
Warner,
Stein
Bros.
&
.
,
Milwaukee—William
&
>
WISCONSIN
.
Co.;
Fred
G.
"
-
'
.....
Boyce.
MasonMason-
Incorporated.
James
&
Sons; Truman T.
Semans, Robert Garrett & Sons; Joseph
W. Sener, Jr., John C.
Legg & Company;
William
Harry C.
Diggs,
John C. Hagan, III,
—
Inc.;
Hagan, Inc.; Mark A. Smith, F. W. Craigie
Co.;
Claude G. Thomas, Distributors
Jr., Alex. Brown & Sons; William Upshur
M.
L.
;
.
Liebman, Loewi
The Milwaukee
Morton,
Company.
CANADA
MASSACHUSETTS
Boston
Robert
Hamilton—Robert N. Steiner, A. E. Ames
A.
Blakeslee, Eaton & & Co. Limited.
Howard, Incorporated; Eugene Merrill Darl¬
Montreal
Frederick
ing, Kidder, Peabody & Co.; Alfred D. G,-,
Greenshields & Co. Inc.
Fuller, Vance, Sanders & Company; William
—
Ellswood
—
G.
Harding,1 Coffin t&
Carl
Jordan,
R.
James
L.
pany;
Marsom
Henry
&
Phillips,
B.
Toronto
Burr,
Incorporated;
W.
Pressprich
&
Co.;
Vance, Sanders & Com¬
Lynch,
Pratt,
Limited.
Estabrook
&
Co.;
Spencer,
Kidder,
Peabody
of
MICHIGAN
member
lor
Detroit
—
&
William
Co.;
P.
Harry
McDonald-Moore
Brown,
A.
Baker,
McDonald,
Si-
Rice
J.
&
Rice
Kenneth
Company;
&
D.
Robert
C.
D,
Irving J.
Field, Irving
not
N.
>
.
made
reservations
representatives
been
yet
whose
supplied.
the
Champion, Lucas,
Inc.
Gummersbach, DempseyTegeler & Company; Edward D. Jones, Jr.,
Edward D. Jones & Co.
Philip
The
Brown,
K.
L.
24," 1953,
of
the
of
In¬
Chapman
on.
elected
was
Directors
to
the
of
Pennsylvania
&
Coke
Corporation.
Mr.
Chapman,
who recently
formed the
NEW YORK
L.
Secretary
Oscar
Board
Coal
St. Louis—A. E.
Chapman Dir. r
Former
terior
March
Kansas City—Frank L.
Eisen & Waeckerle,
Marine
Anthony,
Kuhn,
ton Corporation; Norman de Planque, W.
E.
Hutton
&
Co.; Robert M. Gardiner,
Reynolds & Co.; Roger T. Gilmartin, Mer¬
rill Lynch, Pierce, Fenner & Beane; Clinton
J.
P.
Corpn.
Of Penn. Coal & Coke
Aws,
MISSOURI
—
T.
Securities
preliminary. A number
have
more
have
Oscar
Company.
York
Beane;
-
Merrill
Co.
&
ner,
J. M. Dain & Company; Clinton
White, Piper, Jaffray & Hopwood.
—
&
-
Crotty,
Jr.,
Minneapolis — James W. Davant, Paine,
Webber, Jackson & Curtis; Frank A. War¬
Paul
firms
or
one
names
MINNESOTA
St.
Fenner
Dominion
NOTE: This list is
Co.
monds
Pierce,
Jaffray,
Griffin,
J':
Gordon
T.
—
.
Wheeler
Gregory,
Guaranty Trust Company of
George W. Hall, Wm. E. Pollock
Inc.; Glenn Hartranft, Clark, Dodge
& Co.; John S. Hilson, Wertheim &
Co.;
Edward W. Holland, Stone & Webster Se¬
New York;
Washington
law
firm
of
Chapman
&
Wolfsohn, first
entered
the
service of
the
Government
in 1933
as
sistant
Secre¬
As¬
& Co.,
curities
Corporation; Chandler Hovey, Jr.,
White, Weld & Co.; Kenneth J. Howard,
J. A. Hogle & Co.; J. Hindon
Hyde, Henry
Harriman
Lord,
American
Lees,
&
Co.;
Abbett
Jr.,
Lublin,
H.
&
Alexander
Co.;
Securities
■<
Jr.,
Company.
IOWA
Davenport—J. H. Ruhl, Quail & Co.
R.
Johnston,
Kelley,
Corporation;
Leon
Malcolm
S.
Ira
Haupt & Co.; Gerson D.
Hentz & Co.; A. Hunt Mack-
W. E. Hutton & Co.; Roland Merrell,
Higginson
Corporation;
Richard
B.
Montanye, Laurence M. Marks & Co.; Ed¬
ward
J.
Morehouse, Harriman Ripley &
Co., Incorporated; C. F. Morgan, Morgan
Stanley & Co.; Edmond N. Morse, Smith,
Barney & Co.; Henry Necarsulmer, Kuhn,
tary
of- the
Loeb & Co.; Charles W.
Rendigs, Jr.,
& Co.; Avery Rockefeller,
Bache
Jr., Dominick &
Dominick; Robert Schlesinger, Reynolds &
Co.; John S. Stine, Ira Haupt & Co.; David
B. Stone, Hayden, Stone & Co.;
George H.
Strong, Smith, Barney & Co.; Alan T,
Unger, Lee Higginson Corporation,
Oscar L.
Interior under
Chapman
President
Roosevelt He
Under
1949
was
later appointed
Secretary, and
attained full
under
on
mained
as
Dec.
I,
cabinet stature
President Truman.
wald,
Lee
REGISTRANTS
G.
S.
Murphy,
New
Firms—Bringing Gross
instruments relating to
scientific,
Gray,'
&
Sherrerd;
T.
E.
Eckfeldt,
Stroud
&
Company, Inc.; Richard W. Hole, R. W.
Pressprich & Co.; Edmund A. Mennis, The
Wellington
Company;
William
T.
Poole,
Schmidt, Poole, Roberts & Parke; Edward
Securities
Loeb & Co.; Elwood D.
Boynton, Hallgarten
& Co.; William R. Caldwell, The First Bos¬
increase
facturing ophthalmic lenses
continues
best
carry
to
purposes,
Joseph
Pierce,
&
Selecting Per¬
sonnel"; "Sales Training Methods";
Net"; "Effective Selling of Mutual
Investment
Funds";
"Municipal
production and for additional
securities.
op¬ Bonds,
Revenue
Bonds";
"The
Outlook for—The Utility
erating capital.
Export
permits
are
now
re¬
Industry,
the Oil and Gas
quired to prevent the export of
Industry"; "Tools
Paragon Optical Co., Inc. was
of Economic
some
agricultural products and incorporated in
Analysis, Basic Fac¬
Puerto Rico, on tors in
Investment Analysis, Cur¬
certain raw materials in order to
Oct. 3, 1951. It was
Economic
organized to rent
Problems, Eco¬
protect domestic users and pre¬
expansion
S.
Co.
Bodine,
Bodine;
III,
Buffalo—Edward
the
on
C.
&
Trqst
Company
of
Western -New
York;
Howard H. Weber, Jr., Trubee, Collins & Co.
agement
C.
Ball,
Incorporated.
—
&
Drexel
annually
Advertising"; "The Sales Meeting
speculation." and Selling
Techniques"; "Man¬
to
M.
pro¬
"Public
Altoona
Peabody
Starr,
week.
Significant topics
Degaetano Securities Corp., New
gram include:
York, are offering publicly an
"Recruiting and
balance
exist to dealing in or
owning of
foreign exchange, gold, or foreign
to increase the efficiency of all
those in attendance.. Both
internal
year
;,The net proceeds from the sale
limitations
.
According to Mr. Smith,
When
en¬
the
Committee,
but
Group,
Company; Victor O. Langen, Mason, Moran
Co.; Kendall Lutes,
A. C. Allyn
and
Company, Inc.; Henry D. MacFarlane, First
training
banking busi¬
charge of the project.
and
A.
&
specialized
banking. Regis¬
trants will benefit not
only from
liberal credit terms
participation in the discussions
must
more
from
Asiatic
Co.;
■
Education Committee and head of
the Institute Planning
is in
S.
Boynton
•
Philadelphia
Martens,
James G. Dern, Smith, Barney
Robert Hixon Glore, Glore, Forgan
Edde K.
Hays, Central Republic
Co.;
&
a
"The
increasing tourist trade, for¬ Institute has been
especially de¬
eign
investment
and
other
signed to develop leadership and
overall value of trade
Mexico's
With
Ameri¬
slackened
half of
the second
a
&
spring for
experience of such countries
have just mentioned.
investments in imported machin¬ ness.
Norman Smith, Merrill
During 1952 the United States ery, equipment and raw materials,
Lynch,
maintained
its
position as the but in a declining volume as the Pierce, Fenner & Beane, New
York,
Chairman
of
the
I.
B. A.
leading customer and supplier of productiveness of the country in¬
Mexico
William
Euclid*—John
Lynch,
C.
Simmons;
I
as
Harold
—
Chicago—Robert M. Clark, Blunt Ellis &
gram enrollees will be awarded
in
South
Alex.,
Hirsch &
Boles
completing the three-year
their
Farquhar,
Fred G. O Fiesh,
ILLINOIS
three consecutive
of
W.
PENNSYLVANIA
FLORIDA
ries of integrated courses, supple¬
mented by selected readings.
tion
Co.;
COLUMBIA
Kidder & Company.
and
Certificate
OF
Norman
—
Sons;
Clearwater
Fi-
campus one week each
on
Machinery, Equipment, and
&
Wharton
University of
&
Co.
Philadelphia, it
announced by Ewing T. Boles,
Ohio
Comany,
Columbus,
The
The
Augustus,
Company.
utors
DISTRICT
University
Pennsylvania,
was
Seasongood
'
Up¬
be
his
by
W. Scranton & Co.
engines,
President of the I. B. A.
tractors, motors and machinery,
The Institute is an outgrowth
pumps, plows, locomotives, roll¬
of the highly successful Invest¬
ing stock, valves, accessories and
ment Banking Seminars held in
parts for machinery. There were
Philadelphia under the same spon¬
also declines for non-essential and
sorship in 1951 and 1952 and is
luxury goods in which there are
designed to provide a permanent
overstocked inventories. Priee de¬
executive
development program
clines for certain goods, such as
for the industry.
pharmaceuticals, also helped the
Registrants will be quartered in
country to have a higher volume the Penn-Sheraton Hotel and will
of those goods. Imports of food¬ attend the
Institute sessions on the
The Nether¬
Republic of Ger¬
many, Switzerland and Japan. Re¬
cent expositions and fairs by these stuffs and
machinery to improve
countries
brought... them.- orders the
output
of
foodstuffs
and
Federal
lands,
of
Mexican
Chas. W.
Wilbur G. Hoye, Chas. W.
Co.; Frank D. McKeon, Chas.
&
Reis,
A.
Cohimbus—Charles
New Haven—Charles G.
Crump,
coop¬
nance
Albert
—
& Co.,
Inc.;
Fulton, Reid & Co.
Scranton & Co.;
with
of
W.
Eurge & Kraus; John 0. Doerge, Saunders,
Stiver
Company.
CONNECTICUT
Scranton
Mc-
•*
OHIO
Thorn burgh,
W.
Mericka
by
Commerce
the
most
railroad
Competition is
f
indication
an
import declines last
markets.
already
auditing precaution and
an
as
dollars.
place
world's
the
as
&
R.
Cleveland
Gorham,
Garrett& Co.; Bern Norpoth, Bos worth,
Bromfield
Sullivan
Mayer;
Johnson,
Co.
&
Cincinnati—Robert
Paul, ,W.-
—
Washington
in
School
not
Denver
-4'
H.
Thornburgh Co.
COLORADO
.
Lewis
r"
v
-
Jr., First Securf-
;■
:
W.
&
Associa¬
tion
sion of payments was taken mere¬
ly
have
the
Mex¬
Daniel
'
• '
..»•
GrcenabMo—Marshall
Mackey, First
Wendell W. Witter,
Company;
S.. White,-
ties'Corporation.
-■
Banking,
sponsored
eration
is
to
of
ican
future. Mexico
portant
the
of
In¬
Treasury Department in an¬
nouncing the temporary suspen¬ the
political
destined
action
stitute
Durham—T.
,/
:
Inc.
Witter & Co.
-
In¬
son
Pearson, Bingham,
Francisco—John
Dean
the
tablished
Hurry,
California
vestment
depending upon the credit stand¬
ing of the individual customer.
recent
attend
San
;
David C.
Co.;
Walter &
opening
session, March
30-April 3, of
the newly es¬
are
The
Mexico's
Miller. &
the
Switzerland and Japan. Asserts exchange situation and
collection experience are very favorable.
many,
every
to
.
CTmtWifr—Stuart Dickson; ftV.S. pick& Co.
*-4 ,;.r.
' J;-/•
i"'',
•H-
Open in: Philadelphia March ft)
CHICAGO,.: 111. — One hundred
fifty representatives of member
houses, Investment Bankers Asso¬
ciation of America, are expected
NORTH CAROLINA
..-
.
.,,r
Business
.Thursday, March 26, 1953
Secretary
of
He
the
re¬
In¬
terior until the change of admin¬
istration.
According to L. D. SiTberstein, President and Chairman
of
the
Coal
Board
&
Coke
of
Pennsylvania
Corporation,
Chapman will also act
ant
on
as
Mr.
Consult¬
problems that involve the
company's newly broadened pro¬
of development of certain,
gram
natural resources.
Volume 177
•
Chronicle
Number 5206...The Commercial and Financial
(1321)
»
started
Washington
Ahead
economical
Community Sell-Reliance
ments
President, First National Bank, St. Louis, Mo.
and
Truman
matter developed a
Congress the
unbalanced
of
lot
The Eisenhower Administration has unbent to an extent, and
heat.
while
the
on
there
surface
is
demanded to
the files
see
point is always made when these con¬
injustice
grave
the
to
we
We
must
tion of the American system than
a return to the old-fashioned vir¬
talk,
of
com-
munity
self-
tue
reliance
gathers but simply records it for whatever it
worth—rumors, anonymous reports, sheer
gossip and whatnot. It is not the business of
term
stuff
to the Cabinet officer
over
administrative
head
concerned
him to make the decision.
and
In the
it
as
the front
created and
was
damaged.
to
;
economy
implies
must
begin at home—at State and
to
Carlisle Bargeron
or
serious
a
Every
newspapers.
it did not affect him or his home¬
economy
budgets,
town
American
dollar, an end
was
Wmi- A.
..
Mciu/ornnen
V,
"•
' of- power in ; Washington, an
Foreign Relations Committe and what
position of having
have
come
to be in
-
end.
passed
was
*
this country
destruction of the
and
have
mean
forget about that pet local
we
believe,
to pay
to
pass
I do not
for.
that
however,
have
Federal
the
wanted
we
Government
it
means
of
any
up
the
civic improvements which our in¬
dividual communities really need.
principles
or
in government provided
community.
We
find
can
of
means
doing the
We
is
js
pork barrel for the goose be¬ in the first place, rather than pay¬
" "essential; civic progress" ing air the freight on it for a
for the gander/,
;
;
;
/ round trip to Washington.
founded.-.,;"•i;■■■•.
Now these, are general terms.
A balanced budget is no longer
When he took office in January,
which
"•ur"u
in the
V
our
>
government-/
rtm">rnm<>nt was
wafi
comes
,
'
highly respected government agency going
a
we
It will
which
to
job ourselves and not rely on
have Washington for help. That isn't
wanted economy in general but bravado.
That's just plain good
not in particular.
We have ap¬ sense. Furthermore, it is good
proved economy as an abstract business. After all, Federal aid is
virtue but we have been unwilling
nothing more than our own money :
to have it pinch our own foot. We
coming back to us, less the cost,
have been preaching - pious pre¬ of collection and less the. cost of
cept? with our fingers crossed. It dispersal. It -makes better sense
is easy to talk about restraint un¬
to figure out how
to put that
til it reaches home.
Then, what
money to work for the community
the
to
end
cheapening of
pos¬
evidence of the nature of the file. :
we
services
project
we
penditures, an
end to unbal¬
What seems 4o be lost sight of in all these squabbles about ^ and concepts of government upon
the FBI files is that
that
will never
anced
the
nothing more than groundless gossipas
It
levels.
Now, the trouble in this country
centralization
to these Senators
<
to
are
we
begin in Washington.
to the further
as
If
in government we
has been that everyone has wanted
an
circulation, all sorts of suspicion
mind the man's reputation
my
things.
community
seriously
he evaluated
on
these
have
Secretary of State Dulles summarized the FBI report
for members of the Senate
,
of the
pages
sible derogatory rumor gained
become accustomed.
"
to whether he wouldn't be better off with the entire
file spread across
eral
rifices
in the next.
And we
ready to make the sac¬
which
are
necessary
to
ex¬
■
question
in, our area.
This may require
that we pass up some of the Fed¬
must^be
have
Federal
for
is
spending
non-essential
of Bohlen there is
case
do not want—and
fact, will reject—any offers of
unnecessary government spending
that
end
an
the chaff and report upon the results. It simply
we
help.
do is tell Wash-,
in
implies.
For it
the FBI, it is argued, to pass upon the infor¬
mation it gathers, to separate the wheat from
v
can
we
ington that
double
in
engage
asking for economy in one
breath and exerting influence for
and
that
all
is
not
sincere about it.
be
refrain
is
do
can
we
from asking for government
must be
But
because the FBI does not evaluate the stuff it
turns its
least
must
start
a
Communities Act
Let Local
The
civic improvements.
firmly believe that nothing is
more important
to the preserva¬
involved
person
own
communities
instead, provide
that
and
The most
come up
that to hand over to Congress
the FBI's report on this or that person would
a
obtain Federal favors for his community. Urges
I
flicts
be
made.
their
Ambassador-designate to Russia, there is con¬
siderable feeling behind the scenes.
The
highly important days to you,
me, and
to all who believe
that Federal spending can be re¬
duced
''Chip" Bohlen,
on
spending
and
budgets, and of cheapening of the dollar, mid-west
refrain from asking for government help, and,
the
budget
commit¬
being
weighed and
for Congressional action,
readied
banker decries the individual selfish interest which endeavors
to
bitterness
no
between the President and those Senators who
while
and
are
are
Asserting return to the old-fashioned virtue of community selfreliance will mean end of non-essential Federal spending, of
bers of Congress should be permitted to look at FBI security files.
a
days,
estimates
By WILLIAM A. McDONNELL*
Once again a controversy has broken out as to whether mem¬
Between
These
•
By CARLISLE BARGERON
V
abso¬
were
consummated in a's
manner as possible.
be
progress
of the News
they
lutely-essential. And finally, he
asked
that
projects already in
to
From
unless
13
♦
,
around and
collecting gossip and hearsay against citizens, retain- :." Let us be more specific. Let's talk
ing every little bit of dirt in its files and then when asked by an '• •• about the matter of a balanced
"authoritative" person, turnings the dirt, unrefined, over to him. : Federal budget./The present Ad¬
ministration isi dedicated to the
y. Even when chasing a criminal there would seem to be not the
'
objective of cutting the -expendi¬
slightest reason for a large part of thet material which the FBI
tures of; government to meet the
gathers, not only gathers, but saves. In its file on Bohlen, who is- income of government. The head
certainly not in this category, there was, as disclosed on the Senate ' of the Budget Bureau is Joseph M:
Dodge. I know Joe Dodge—he is
floor, an anonymous letter from, a man who claimed to have a a * personal
friend of mine. \ No
•sixth sense.-All he had to do,: lie claimed, was to look at Bohlen
man in the United States is better
and tell he was not a good security risk. Why would the FBI have
qualified for the job he has ac¬
.
Mr.
..
kept this letter, included it
doubt there is
paid
more
a
they
case
should
an
appointment that
have
made
and
FBI
ivete when
security file.
he
being
a
insisted, in
sit
well
with
the
defense of his
of
State
J
achieve
of
appointment,
The fact is that Mr. Dulles has been mixed
so
Democrat and
a
long that he doesn't
Republican.
a
<
see any
The agitation
Why not
name one of
ents stationed in Moscow?
the veteran
ideal
situation but
a
situation
But
on,
the
in Russia.
an
do with
in
a
a
a
government job.
I
never
get
any
raising them.
taking down
raising chickens and
was
was
determined I would
every
the young agent
^vices
_exist. He asked that no
construction
ate
was
...
.
recently
SAN
FRANCISCO,
Calif.—
George A. Salinger has been added
to the staff of Walston & Co.,
Street,r members
of
the New York and San Francisco
Stock Exchanges.
He
was
previ¬
ously with Dean Witter & Co.
It's Up to the
1
If
Beech
anced
securities business.
they
we
E. E. Mathews Adds
A
people
have these
can
ment
in
from
things.
Washington
is
nov/
with
Edward
Mathews Co., 53 State Street.-
E.
by
Mr.
nual
March
10,
1953,
.
i
^
to
we
know
it.
:
much
not
regard it
as a
Trading
our
you
challenge.
Depart-
.
:
...
107 Merrill Lynch
coast-to-coast
executives
with
offices
....
than 1,100 account
literally
thousands of
personal contacts.
So if you ever
and
call
The
last
us—
have
block of stock to buy or
a
sell
,
remember:
thing we'll want
to
report is
"No Market."
Trading Department
All
Donnell at the An¬
Meeting of the National Council for
Community Improvement, St. Louis, Ma.,
♦Remarks
there's
and
A challenge to more
Merrill Lynch, Pierce,
"
70
BOSTON, Mass.—Alfred R. Del
—
Merrill Lynch,
A challenge to
want
have to do is let our Represen¬
tatives
true
challenge
in government—a bal¬
budget; a sound dollar—
(Special to The Financial Chronicle)
Pozzo
LOUIS, Mo. — Sanford L.
is
now
associated with
King Merritt & Co., Inc. He was
People
American
the
economy
offices at 3903
to engage in the
265
*"
Montgomery
Opens
Burke has opened
Avenue
ST.
Barnett
do about it.
But here at
government
operation of
day."
tint's
Sometimes
can
They are,
Administration.
an
the
in
BALTIMORE, Md.—W. Windom
(Special to The Financial Chkonicle)
*
Financial Chronicle)
MARKET"
"NO
from day to
W. W. Burke
The
to
-
therefore, the most vital influence
word I said.
Walsion Adds to Staff
With King Merritt
(Special
*
be pany; Inc.
programs
new
the full
responsibility for government. The
responsibility in a real sense ex¬
tends to the people as well.
"For the people are in truth a
part of the
governing process.
They alone can affirm or repudi¬
because I wouldn't do any of the work involved in
I happened to look up and
agency
survey
Congress has been given
gossipy mood and began telling how during the meat rationing
of the war he started
office, Mr. Dodge B. C. Morton & Co. of Boston.
of each Mr. Brown was formerly an ofr
government administrator. He ficer of Slayton & Company, Inc.
ordered
each
department
and Prior thereto he was with Rey¬
the desires of the
Lawrence
David
As
One of these visits had to
former next door neighbor of mine and a friend.
Charles W.
associated with
also made another request
pointed out: "It is an oversimplication to say that a new Adminis¬
tration or a triumphant party in
.
question of these FBI files, I have had several
applicant for
Government
sive to those desires.
visits from young FBI agents during the past five years, checking
on
Chronicle)
When he took
They are directly respon¬
people.
nevertheless, and knowledge of
the language won't do Bohlen any good
this
-P-en^t'v^o™ ^gov-
insulated from
Very few of our diplomats speak the
language of the country to which they are assigned, which is not
an
Brown has become
—
live and move in a
correspond¬
newspaper
be changed.
The Financial
to
LOUIS, Mo.
ST.
represent the people. They do not
detached world
contended, because he speaks Russian and knows the Russian
mind.
modes of bureaucratic living
previously with Slayton & Com-
a
affairs of the Federal
the most logical man for the post, it
B. C. Morton & Co.
(Special
is
umnists and editors.
was
United
C. W. Brown Joins
nolds & Co. in Chicago.
ernment.
He
full backing
the
civic virtue—it has become a
necessity if we are to pre¬
serve our brand of freedom.
a
vital
progress
which won't quickly
acr
self-reliance, therefore, is not only
official, announcement
that the
and
self-reliant
tion at the local level. Commum+v
has been made—
going is tough; that Mr.
Dodge is struggling against, the
deeply-entrenched spending habits
little
without
possible
head in Washington to
spending in three fields
worthy
objective - without
the
—personnel,
construction, and
backing of the Congress, and the
spending under programs which
Congress will not support such a have been established by law. He
program without the backing of asked that no additional
person be
the American people.
added to the Federal payroll un¬
The reason for this is that ours
less a real need for that person's
for Bohlen's appointment .came from New Deal or "Liberal" col¬
was
=
program he has the
of the
President of
In this
combined Cabinet can achieve
that he
lesser, non-
a
balanced budget.
a
States, but, neither Joe Dodge nor
President
Eisenhower,
nor
the
na¬
policy making post, the inference
a
with the State Department for
difference between
of
majority
considerable
post in which he could do some harm, to
policy making post.
up
Republican Secretary
Mr. Dulles showed
really demoting him from
was
a
didn't
the fat out
government spending so as to
tion right now is to cut
He
no
just a pleasing state of financial
equilibrium — it's
an
essential
weapon in a world-wide struggle
of opposing systems of govern¬
ment.,. A balanced budget is im¬
yet as to how much these individ¬
ual
requests were pared down.
The unofficial word we get is that
personal sacrifice. He has no po¬
litical ambitions. His sole ambi¬
Their attitude had nothing to do, however,
Republican Senators.
with his
it
there is
cepted. He did not seek this job—
in fact, he accepted it at great
dealing with.
were
However, this article is not primarily about Mr. Bohlen.
not
•
/
■
than passing attention to anything like this regardless
of the kind of
was
I
part of the screening of Bohlen?
as
Police Department in the country that would have
the Director of the
Budget, asked each governmeni
agency to review its 1954 budget
requirements and report back to
him by March 2, as to how those
requirements could be trimmed
down
from
original
estimates.
March 2 has come and gone and
Dodge,
PINE STREET
Fenner & Beane
\
Offices in 103 Cities
NEW
YORK S.N.Y.
14
(1322)
1
The Commercial and Financial
How Protective Are
Co., San Francisco, Calif.
Defining
equities
as
of mature companies
should
normally incorporate protective stocks
Furnishes data
price
fluctuations, earnings and
tinction
dividends.
between protective stocks and
clear-cut, and
in
their
port¬
protective stocks with reference
on
economic
growth
Points
not
to
out the dis¬
growth stocks is
does
necessarily
+•
•
iiwA
deflationary
bonds and
protective
.
.
.
stocks
pro-
survive
consumer
nosedive
htm
of
U
■'.
t
■
and
prices.
cles
with
mining
fortunes
have
been
im-
to
t h
e
earnings
to
y
and
dividend
rela-
products
.
whose
to
rise
when
sales
of
as
costs
stability
company's
of
demand
products
somewhat
a
signifi-
in
Since
high
there
Scientific
income
brackets,
is
foolproof
no
method
01*
usually
indicated
safe
of cash
and
louds
seem
<
the
flexibility making for profit
to fully retire into
frugal storm cellar
but
bility
tions
whenever
clear.
Thus,
interest
Jong
investors
in
skies
look
will
show
protective
stock
as
remains
the
stocks
market
,
,
"protective,"
are
trie equities of
leaders in industries that
enjoy a high degree of
business
stability.
m'
Those
are
is
the
fact
that
reputation as probeen established on
performance,
its
market
stock
.
tain
stocks
protective,
how much
protection
let
us
see
has
in
the
past been offered
by stocks of recognized
protective
qualities.
In
order to minimize
the influence of
individual
statistical
fluctuations
groups
are
01
picture, Table
the
the
figures
reveals
high..stability
was
lapse
Industry
during
expected
are
to
I presents
contrast
earnings
ratios;
in fact,
...I—
1.1
those
oper-
so on-
y.
to '32 Low
Some Protective
Stock
Operating Utilities
Nat.
Gas
—79 %
Distributors..
Telephone
&
Tel
—
—76
—
—75
Food—Dairies
I-I~
Food—Bread
&
Cake___
Products
Manufact.
Retail—5c & 10c
—
—80*
—
—92
—
—58
Shoe
+
—71
I
___~1
Gold
Mining—U. S
Casualty Insurance
3.
—
89
Food—Packaged
Tobacco
Per Sha
Some Growth Stock
of Com.
■
Groups
•
°f defensive
stocks
equities of relatively mature
panies
which
rather
than
excel
by
stability
dynamism;
quently, it will take the
conse-
—
—79
than marketwise, and their
63a
—41
—17b
—41
45
+ 37c
*
78*
+
81*
—49 %
■
3*
—56*
divi-
stocks have outperformed cyclical
stocks earningswise
wise
to
a
and dividend-
greater
extent
than
marketwise.
Third: The growth
groups tabuperformed rather
closely to
iated
the cyclical
drastic
to
fully
recuperate
their
initial
in
groups
downturns,
earlier
while
highs
have,
ing
the
reached
forties,
a
growth
stocks
most
cases,
principal,
based
exceptions
General
+
12
+
12*
+ 10
—37
+
1
—40
6
+
respective rank
protective groups
as
of
is
Com.
Cut
—46
+ 63e*
—51
—
—10*
+
—47
Elecinc,
—88
Rayon
_
3.
Some Cyclical Stock
;
Paper
♦Based
vert
"rfh
niJ,
on
—7%
—7.,,
Stores
three
69
—33
—136*
—81
.
—
—
—44
stocks,
or
—93
—152
—94
—92
—70
—104
—66
—64
—94
—127
—53
—92
—74
—162
—63
—66
less.
n.c. No
change,
n.a. Not
fnd' '+6~/2
+6,v, 'resnerHvpn.6^
p3S?eC-tiVe1^'
respectively,
*nd
Percent
—
—71*
—58
c
Exclusive
2ri,ri\s,'ES
stjsnss gpsjst
NOTE:
—46
f
97
—
2
7
—10*
+ 43*
—
42
1
—21
21
declines
of
earnings in
of
—
—
—
available.
e? E*cluslve
Standard
of
15*
in
the
a
—
—
8%
+ 25
like
earlier
+
1*
+ 14
9
—13
—31
—19
—
+
—30
6
of
100%
denote
—21
—
9
—13
—16*
—
•
Whether the natural gas pipe lines
utilities, combining
W111U1IUU(J
with
a
defensiveness
_
of growth for the
measure
investor, will depend on the future policies of the Federal Power
Commission.
The next business
and
when
they
clues
some
offer
may
what extent the
to
as
recessions, if
come,
lasting expansion in both welfare
and
defense
spending
has
made
need
of
two-front protection,
against the alternating threats of
a
deflation and inflation.
securities
the
afford
Protective
some
cover
deflationary side. In
secure
a
order
—11
5
+
.
—30
Am.
Tel.
Am.
Tobacco
&
Ed.
—30
+ 35
and
were
phase
have
of
less
considerations
rent
yield
of
happen
ample
to
be
cur¬
over¬
%
Decline
'29
High to
Earn. p. Sh.
Some Protective Stocks
Tel.
&
Tel..
1932 Low
20.9
78%
Cleveland
El. 111._
27.0
84
Cons.
of
38.0
83
34.6
83
Ed.
Pacific
N. Y.
Gas
&
El.
Lighting-
.
32.0
86
21.7
79
32.6
91
Some Growth Stocks
in
Dow
du
only
that
___
—
_
of
N.
--
Y.
Refining
Foods
___
_
Chemical—
Font
General
dy¬
Electric-
Parke, Davis
Union
Carb.
&
C.
45.0
92
33.0
80
35.5
89
III
Changes
1929
1952
1929-1951
Cash Div. Paid
High
High
P. Sh. Earn.
P. Sh. Com.
319 VA
161%
116 V*
661a
183 V*
39 Is
1263a
73
813/i
-
28.0%
—
3.4
—
40.5
—
7.3
—
53%
4.3
—
Pacific
+ 19
1*
_
+ 14
—21
+ 51
+ 78
—32
—13
—11
—46
—18
—22
—i
percent
Union,
changes
percent
in
Wr
__
40
42'/a
98 34
39%
66
47
39.0
+
43.6
+
46.5
n.c.
—
—
—
—
20.0%
33.5
10.0b
20.0
+ 110.0
—
45%
801
7514
s
300 0
+
280.0
12.4
—
n.c.
—
+
4.1
i.
n.cl
17.3
—
21.6
Some Growth Stocks
Am.
Can
Dow
Chemical
*
—
Pont
_
-
Electric
Goodrich
(B.
Industrial
Rayon
Parke,
-
F. I
Davis
Phillips
_
Shell
—
No
+
____
changes
in
b Also paid of,c
266%
'+
1%
630
*5734
973'8
+ 162
+
142
*1003i
72%
+
114
+
100
*3514
77 la
+
100
3134
.
Roebuck
change,
+ 620
*23 Va
«**■
n.c.
+
44 >4
5314
_.
Petrol.
to
36 Va
*5
*13,'a
Oil
Sears,
46 '/a
*45
_
i____
in
paid
9.3
4.0
+
3.0 a
—
—
103 7/b
gley
♦Adjusted
earnings to net deficits.
^
Tob.
Monsanto
4
changes
dividends*
»•»*»»»«»«■«»
Ei._J
&
+ 100.0
—
54%
*6114
Gas
Woolworth
du
+ 35
—56
Western
Va
39
5
95
9 +
77
:
_
Reynolds
4*
+
"+
44
of
*lls%
Shoe
*57.
Kroger
1
—60
a
Mining
Kress
•
43*g
51
Union,
to
of
measure
give sufficient weight to judi¬
ciously chosen growth stocks un¬
Pac.fic
Tel
Prod.
General
—100
on
protection
inflation, the investor has to
fr0m
and
tobaccos,
some
International
—12,
7
+
—37*
net
of
comparatively
regulatory
bodies.
+ 19
—
9*
—
7
—11*
changes from
o
will join this privileged
groups of
Am.
growth
lost
Homestake
—18
9
T
9
■
h=*n» saws wijgsrjrsti.d rsuus
excess
1
1benefit
*
friendly
Others, like certain chain
Corn
4
_
+ 19*
—23
si in is32; ceianess
i
West
Some Protective Stocks
—21b
2
—
—13*
—94*
was
n
operating in some of the country's
principal "growth areas" and have
TABLE
6 %
+ 10
—34a
—12
—
"+
3
—
—16
Exclusive
be¬
stocks
the
decades
namism.
Divs.
%
50
there
able to
foctor
__
1929 High,
Times '29
distinction
protective
dynamic
a
Per Share of Com.
63*
Western
Brands,
_i
1929-1S52
'
n.c.
—147
i
_
—Percent
Earnings
to '49 Low
—14%
—
46
j
Corp., Southwestern
Public Service, Texas
Utilities, or
Houston Lighting & Power—are
growth stocks is far from always
being clear-cut. Some defensive
2.
Groups
U. S. SteelGeneral Motors
Retail—Dept.
—
—91*
Petroleum—Integrat.
•
Stocks
top perform-
.
Chemicals
oovninnc
^
■
9
Groups
«=.
Distinction
Growth
However,
tween
Consol.
'48 High
.
—31b
1
the
TABLE II
Clear
For
1948-1949 Percent
-Changes (Round Upl-
of
108*
+
—
in
increase
Stk. Mrkt.
No
gradually
—
—48
o
earnings.)
interruption.
10
46a
^
which, at the 1929 high, sold at no
riding.
less than 45 times that year's
groups,
The
recent
(One of the signal
peak in popularity.
The chemicals in
particular did
not
show any profit
decline in
1949, as their vigorous
postwar
growth phase continued
without
Fourth:
increased
on
market prices.
lately
new
in
their
record
Divs.
10%
—43*
lOd
—141
—
—66
57
+
—
—
share
per
dend ^distributions have1 been investment in the market. In conhighly erratic. In other words, trast, those who bought the
typical
during recessions,
protective growth stocks at their 1929
General
3*
+138e*
—92
2 'r
+
—
61
—
n.a.
34 .%
41*
*.
1
earnings of such companies far
longer to catch up with excessive
contrast, at their 1929 highs have (with a
cyclical stocks frequently declined few
exceptions
due
to
aboveearningswise even more sharply,
average growth) never been able
Earns.
Share
„
South
are
com-
investor
earnings faster than
equity capital—such as Central &
In
fact, for most of the typically
stocks, it is true that
-ls especially
risky to buy them
prices which are excessive in
the
proportionate
_
not
protective
Market
per
»,
•
Factor
a
of
increase
the
Stocks
—
'37 High
to '38 Low
for
a
;
*
Protective.
Prices of Growth
at
benefits
form
systems which have been
u;-u
excessive price is marketwise
it
the American
economy less sensiSecond: Protective stock groups
tive to cycles, and if so, to What
have
been
much
more
stable stock market
prices than may be extent
the gap between
earningswise
than
leadingmiarketwise, the case for typical growth stocks,
"cyclical" stocks and protective
and in turn, have shown greater As shown in Table
III, those who stocks
may have been narrowed.
stability in dividend distributions bought
typically protective stocks
Basically, the investor is in
than in earnings. In
1937-1938 Percent
Divs.
of
some
for
consequently,
very
difficult to
in per share earnings and dis¬
dend payments Most of the utility
ratios were as high as, or
higher than! the ones then
prevailing for some growth stocks,
Their subsequent market breaks
simply illustrate the truism that a
"protective" stock bought at an
«
found
financing
translate its economic growth into
even
WA v?11? j°r^y
differed
e^mty ratios, -efficiency of
Market
Earnings
has
to the group's
performance in
market
j. -7. relation to prospective earnings
cyclical power. This is so because the ma-
of course
* aHier widely in performance, due
such factors as trade position,
Market
'29 High
gas utility
phase of sharp
a
heavily on outside
its expansion and,
subsequent market setbacks. As
illustrated in Table II, at their
highs, utility stocks were selling at unreasonably high price-
1.
Changes (Round Up)
or Trade-
industry entered
1929
recessions:
atl0ns> and
in
creditable
Common Share
-
a
score
the operating utilities
during the 1929-32 col-
as
poor
Comparative Percent
Changes of Average
Market Prices,
Earnings and Dividends
Paid per
1929-1932 Percent
not
tobacco
TABLEI
—
does
country's electric and
of
.
a
invest-
1
the
on
growth
ination
consistently
bears a
closer re¬
semblance to protective stocks..
As
economic growth
intensified dur¬
probing into
fundamentals that make cer¬
the
Economic
*
fairly
a
pace.
necessarily result in investment
growth for the stockholder." The
.
offer
to stock group behavior
their
Experience of the Past
Without
further
relatively
.
instance,
investors' demand.
makes a stock
'"protec¬
tive"? It is comparative
stability of
earnings that makes for
,
sta-
factor,
tends to be
supported by sustained
What
rru
there
has
past
1
Therefore, among stocks
usually
characterized as
for
cost
rapid
...
groups
stock's
a
tective
forecasting
unreliable—that is, prob¬
dividend
prevails,
Finally,
once
ably forever.
.steady
labor
packers, dairy
companies, retail chains, tobacco
companies, and operating electric
and gas
utility companies.
as
payments,
and
also tends to
minimize price fluc¬
tuations of the stock.
low
a
among certain food
on
business and market
horizon,
to abandon all
protective posi¬
or
is
which
bonds each time that
to be
gathering
extensive
to
-^yr- ^a£
efin^s tda*V-traditionally
vola-"
more
characterized by a
relatively high
degree of stability, due in
part to
the fact that equipment
rentals,
a big cost
factor, are adjusted to
output. Another element of cost
of
extent of specific market
fluctuations, it is for investors
vhe
for
■
is
enough
?'
serv-
demand conditions.
Thus, the
performance
of
leading show
producers over the years has been
accurately
predicting the start, duration, and
not
T_
presented
*•
sxactly as. they
for
tile
cantly higher current yield, after
tux, to all but the individual investors
price
especially
,
those three
of
factor!
prices,
distribu-
advantage of
included
An
analysis of these figures
permits the following conclusions
comparatively good earnCompared with high grade
ings stability even in an
industry
bonds and savings
accounts, they which faces
the
stocks
been
Poor's stock
although,
coherent
tive
ices
is
a
basic
ingredient that
tends to make
equities protective,
it is, of
course, not the only
A flexible cost
structure may resuit in
tions.
offer
&
mate¬
has
ment caliber
gold
price
the
on
I
basis for rough
comparisons. Most
of the equities included in
protec-
and
times
production
the
Table
..
business
in
.
and
industry
the
in
Standard
material
basic rAnrl
food
is
stores, are still growing at
for
the 1929-32 dip, a number of these
stocks were, for technical
reasons,
ommecj jn this
compilation, the
nnc?m
Another
while
while
the
stocks
market
is
one
compari-
shown
are
monetary gold sold to Uncle Sam
First: Protective stock groups,
unchanged.
; with a few exceptions, have-acted
sho w
less,
volatility than
other
regard
as
from
the other, and also
differences in rank be-
tween their market, earnings and
dividend scores. However, exam-
group
shown
indexes;
dady
is
facilitate
data
remains
normally
with
tend
decline,
fluctua-
tions,
nc
demand
industry,
deflation
con-
siderable
price
tobacco
gum.
assured
common
not
Bing
like
stocks
mune
A.
pn/nn
chewing
|- ■:
Kalpti
tr
the
to
non-durable
or
demand
lively molioTi/i
inelastic, such
protective
"■
telephone,
in
..
.
indispensable
of
similar
Generally, the statistical
rial
items, "50 and 100 store" articles,
or
low-priced habit-forming arti¬
Although
%
.
eoods foi
for which
goods
business
stock
d
a n
the
profits
order
compiled
.
,
crisis, cash, mostly industries offering
fhrandal'.a
parachute
to.
pensable
,
somewhat
to
showed
protective
industries.
not
mean
investment growth for stockholders.
T„
varied
1953
groups,
a
rela- expansion
f
in the forties, which
tively good over-all score for op- continues unabated in the fifties.
erating utilities, a record of very* With the factor of
competition
a few "growth"
groups, and some stable
market
performance
for normally absent, or of minor 1mof the more cyclical stock
groups; shoe
manufacturers, and good portance, no industry is in a better
included
in ' the latter
are
two earnings and dividend scores for
position to combine stability with
individual stocks, U. S. Steel and the few stocks
grouped as gold economic growtn.
However, due
General
Motors, each of which mining in U. S., and dairies,
to the limited capital returns al¬
may well be considered representFifth: The market performance lowed by
regulatory bodies, the
ative
their
entire
respective of such a
prominent defensive utility industry has to rely very
In
stability rather than growth, Mr. Bing holds,
impacts of deflation or inflation, investors
folios,
considered
groups
for
sons,
protective stocks
with emphasis on
in order to avoid
stock
'
1949
Members New York Stock Exchange
J
entire
during (1) the 1929-32 collapse;
(2) the brief but sharp 1937-38
downswing; and
(3)
the
mild,
brief,
and' partial recession of
By RALPH A. BING
Sutro &
ers
recession
of
generally
Protective Stocks?
.it-
the market, earnings and dividend
declines
Chronicle... Thursday, March 26,
*451a
+ 500
6414
+ 110
10914
c
+
610
53
+
121
+
Id
64 V8
+
97
+
140
+ 1090
87
+
472
+ 114
62%
+
230
+
capitalization,
a
1929
stock d.vidend.
c
Paid
to
S3
1952
390
percent
increase,
in 1952, nothing in 1929.
-
(1323)
Number 5206 .The Commercial and Financial Chronicle
Volume 177
Second,
■
have to
we
spite
run our sys-
;:'y tern of the Sterling Area on gold
in
'
and
15
increase in some food provided we can secure our base
which ioilowed tne reduc- by maintaining and strengtheningin food subsidies.
the sterling area system and the
the
prices
dollar'reserves much smaller
tion
■
_
P'w
111
iJTV'than ^before the war. Since we
Unproductive kinds of expendi- role of sterling in international
f||TAJfS|; 01 III© if66—W Of 1(1 '-canie
into office in the
U. K. we ture. have been clipped. For the trade. This is the system which
-have transformed
debit of over second year running we have been sustains the largest area of multj-
PlZ^W
iL
■■
"
~
a
-.31^ billion in our overseas pay- able to keep tne civil expenditure lateral payments in the world—
;•
y: I By THE RT. HON. R. A. BUTLER. M. P.*
"V-
.Chancellor-of the Exchequer, United Kingdom
mentS" in
the
195L into
a
.
Chancellor
Butler,, after revealing^a full
../'^million
of CL
.But
understanding
we
.
Britain with
State
Department
foreign policy, describes
on
England's efforts to attain economic
out
adequate defense
an
strengthening
and
maintaining
finances half the world's trade.
ing interests
while carrying
Stresses importance of
recovery,
program.
Sterling
the
inseparably linked, and
are
,
_
:
.
want
I
•v
Britain
.
share
s
about
you
the
in
effort of the free
this
to
economic
world, and how
gigantic
fit in with your
can
contribution
Eden
in
his
an even
in
greater sur-
together is
to
defense
budget is twice as
The
talks
new
represents nearly 40% of our
total budget. The figure for the
Dulles, and with President Eisen- next fiscal year was published just
hower, will bear fruit in many before I left England—it is $4.6
parts of the world in the days to billion. This may not sound very
ensure
the ef-
fective
opera-
tion in
peace-
time
of
one
of the greatest
alliances
political
military
time.
are
united
we
combat
highly-organized
threat
so
may
con-
a
over
many
built
animates
and
in
fresh
wind
enterprise
your
populating
this
setting
of
which
territorial unit of human civilization dedicated to the task
viding
wider
of pro-
opportunity
better life for the
and
a
individual per-
son
Rupert
also
working
we
able of assets—a personal under- the war—indeed since
standing.
Brooke,
will
you
At the Economic Club you may
expect
me
to give
most learned
a
and comprehensive lecture on all
that
we
have
been
discussing;
re-
think
I
breezes
of
sacri-
determination together
a
by past experience and
profit
by
present
our
make
the
reminders
many
joint emotions and
our
fices and
to
find
he'd
now
wafting
ourselves
efforts and so to
worthy of our
heritage—the defense of freedom,
We
iust
the
center
Ta
Your
world
island
small
a
wealth.
our
partners in Britain are
your
not
We
arp
and
continent
flung family of nations
heart and main¬
must be the very
spring of
their
if
+
rei a
191a
L
it
as
Our
now.
is
wirfp
wide
anH
and
-political, millooked
have
I
as
scene
wholp
whole
social.
and
_r
Yet
W
objectives
thp
the
povpt
cover
field of endeavour
ltary
niirnnap
Hpti,™ ;T„i
,
arp
are
the
at
past months, I have con-
in
stantly asked myself: What about
the
economic
which
on
all
financial
and
this
all
it sound.
Is
must
Is this
base
built?
be
of
foundation
policies
defense, political
strong enough to bear
our
and social
the
a
in the im-
burden, not only
future
mediate
as
---
particular
own
sure
have; not
we
enough
given
together—jointly—since
thought
*
"
relief
for
forestall
cannot
I
1945.
before the
is in service outside the U.K. The
external cost of defense to us is
over $1 billiop. Finally, our defense program takes about oneeighth of the output of the metal
usinS industries—which as you
know is precisely the field from
which we draw our most salable
wading
,
.
,.
_
,
...
,
„
_T
In
Washington
few
days
and
myself
bers of your
tried
up
to
the
and facts of the world
and
the
starkly
last
Eden
mem-
have
realities
Adminlstratmn
face
to
over
that is, Mr
together with
we
is
as
it
really
today.
husband
her
to
that
sure
—7T~
.
i
the
understanding
.,
.
d
.i
fore
Tha; Economic OuT of"* New
New
York City, March
io, 1953.
Mr.
i
York
to go on successfully,
of of the sterling
industries
area
can
influence
Quote
shorter
much
overseas.
As one
and
who looks from outsido,
the other needs would seem to h?
a
review of U.S. tariff policy an 1
oll
Continued
on page
—
"I
have pinched and starved and
saved a few cents here and a few
cents there and now you've
blown
rp.
your Income Tax pay-
.
NEW ISSUE
_
This advertisement is
ment „ That gounds familiar>
which
advice
Some
I
neither
shares.
receive
an
offer to sell nor a solicitation
The offering is made
of offers to buy any of these
only by the offering circular.
is incomprehensible and expects
much
too
iast
I
THESE
mechanisms
ajs0
at
comprehension
complex
from
the
PARAGON OPTICAL CO.,
the .ordinary-
of
not
need
economics
Oood
AS A SPECULATION
300,000 SHARES
created
we
too
once
remote
too
SECURITIES ARE OFFERED
forecast the
weather—but
wrong
man.
brain.
human
not only
we
war
ancj
the
of
help feeling that after the
cannot
INC.
necessarily be incomprehensible,
wm
i
attempt
to
give
you
a
Offering circular may
simple and I hope stirring account
0f
efforts
our
then
discuss
can
in
U.
the
with
you
Here
are
K.
and
how
our
be linked with others.
facts
some
about
,
World
a
Wansformed
II
War
being
Members: National
37 Wall Street
us
For
Lend — owing
other countries $13 billion. Soon
erosity
after
had
more
borrow
to
to
tide
period.
try's
has
position
over
over
us
reconstruction
so
Association of Securities
WHitehall 3-5480
Offering Circular
of Lease
we
broker or the undersigned
Dealers, Inc.
New York 5, N. Y.
great creditor coun-
enbed it—despite the gen-
£ry
be obtained from your own
DEGAETANO Securities Co.
our
p0s*jti0n
frorn
PRICE $1.00 PER SHARE
COMMON STOCK
Facts of the British Posit'on
billion
On the foreign policy side I am
metal-using
prices movement and a momentum which
practically unchanged de- must be kept up. We can go on
'
Understanding Reached with U. S.
are
this period average retail
of
your
Sunday were
to find a cartoon of a
one
saying
efforts
-
we
must seek solutions to the
problems of world trade and il¬
nance so that we can live by traci-
'
by
rewarded
was
through
This is the as-
pect of the matter to which I am
if
we
for it was started early in
1939—and we now have a twoyear call-up period with Vh years
in the reserves. We have the
largest armoured force of any trol over coarse grains and eggs. 'American foreign policy woukl
country in Western Europe today.
We are also restoring freedom recognize the importance of profThe great majority of our Army by returning to private operation itable and equitable world trade,
but if necessary—
long cold war?
last year,
tw0 world wars—and of course strengthen the balance of pay- Buy American legislation. ments of the sterling area. Some
£or £be whole field of dia¬
developments already in hand, e.g. crimination, whether in shipping
Northern Rhodesian copper and or eiSewhere, all we ask is that
the Volta River scheme, have jus- we sb0uld be given the freest poytiliably attracted great interest sj,bie chance to earn our living on
and attention throughout the tree commercial competitive terms,
world
_
without impediments. This would
We have made over !t>iou mil- not only help us but jn the
lion available in the next six long run wouid help you. You
years for the World Bank.
must not think that you need surQfrpccpc Role
of Sterling
Area
round your ever-flourishing econ&tiesses
Kole or
sterling Aiea
from taxes; tion is now in check. Prices and
0-my. with
beetling cliffs and
my Budget the
wages
were more stable during
second half of last year.
In
All these activities are part of a barbecj wjre to keep out trade on
statement even here!
well be—in the face of
it may
"
*
1
asks
and
wife
jiffprpn+
10%
they represent a very heavy burimportant to have a nose for the den on our economy.
weather and a long experience of
In order to maintain this effort
gale force and direction as it is in Britain and the sterling area
to get your calculations right on we have, since I became Chancelthe chart.
lor 18 months ago, taken definite
I- probably receive as much con- steps to free and to tone up our
flic/ting economic advice, most of economy. We have certainly got
it gratis and for nothing, as any things moving—and in a new dilivinS man- Much of [i is simple rection. First and foremost infla-
newspapers
world.
the free
I,.
by
couraging the flow of private
American investment abroad, uhmg the offshore purchase system,
and increasing American purchases of raw materials,
• Certainly we should rejoice to
see the maximum U.S. investment
I
Common
great
vast
fell
stressed development. In home
agriculture, the two go together.
We think that by appropriate incentives we shall secure increased
exports.
production of those products which
win* and weather permitting,
I mention these facts not to the U.K. is best fitted to produce.
especially if you know how to boast — and certainly not to
Overseas development, too, is
make allowance for wind and beg—but because they do repre- not being neglected.
We have
weather. Naturally when you find sent a very real contribution—un- discussed with our Commonwealth
yourself
"off
course"
you
can doubtedly by far the biggest we partners schemes..for
intensified
blame the storms and when a fair have ever made except during the development which will
have
notions.
take the credit. In fact it's just as
ries."
based upon sterling
finances half the world's
system
and in particular mentioned the
possibility of simplifying Customs
procedures, extending the recipr0cal trade agreements act, en-
wind brings you home you should
memo-
the
policy
the road transport and steel industries, two industries least suitable for public operation.
But besides freedom, we have
practising economists. Though
I should suppose that most memare
that "the
no
we
war,
.
member, said when he came here
breezes have
Then
population.
a
When crossing the Atlantic I
could not help comparing the art
achievement
in and science of modern economics
vast continent with that of navigation. That is
up
the greatest to sav it gets vou somewhere,
the
by
and
side
good beginning and have another 5%
in industrial
I feel that with your Secretary of work allied to the defense effort.
the Treasury,, Mr. Humphrey,I We: have maintained compulsory
have established that most valu- universal military
service since
bers
years.
Whenever I visit America I feel
thought
economic
Fortunately I understand that not
on
been
the
all members of the Economic Club
of lire and to all the princi-
revivified
On
have made
our
to
pies
it has
better women in the defense services,
not far short of 4% of our total
in
and
way
which
countries
two
stead.
We
stant
.
,
of
—
all
that,,
Rt. Hon. R. A. Butler
—
and
We have about 880,000 men and
his power of friendship serve him
our
monetary
delivery weather—we will do our best to
dates than a year ago.
lighten burdens and to go on mak'
With very few exceptions our ing ourselves more flexible and
industries can accept and would more competitive.
welcome additional export orders.
And here you, too, have a part
it is overseas demand and not our .to play.
As the findings of the
ability to supply the goods which Paley report are studied I think
is now the maincfimitation on .more and more people will come
stepping up our expoft trade. Yet to see that your trading interests
our exports of coal and of metal' and ours are inseparably linked,
products have been substantially That's the real significance of
increased.
"Trade not Aid."
We have brought new freedom
Of course, your new govemtoo, into international trade. Mar- ment must be given time to work
kets have been reopened in Lon- out the best methods of working
don for zinc, lead and tea. Timber with us to achieve a widening patpurchase has been restored to pri- tern of trade, and currencies which
vate hands. At home we are get- are more easily interchangeable,
ting rid of the elaborate systems Already the President in his State
of government purchase and con- of the Union Message has said that
to
with your Secretary of State, Mr.
or
new
advances
come. I have never seen his great much to ycu—but let me tell you
-experience in foreign affairs and what it means to us.
Our. task
budget from rising.
is which
1952. yielding results. The total of bank trade.
past and present.
our
The
large as it was two years ago and the United Kingdom are now abie our economy—subject to wind
,
achieved
has
Our
overseas.
.
talk
to
the whole of
over
need
of
$150
.
*•
reduced trade
urges
over
;uS incomparably more than before monetary policy was almost cer- mg and so make our own indethe :war.;;
tainly on inventories. All this has pendent contribution to the com-.
For
Us, like
you,
the biggest helped us to liberate resources for mon cause. Insofar as my cclsingle burden is defense.
- the exports we so much need.
leagues at home and in the rest
_w
Holds British and U. S. trad¬
restrictions and maximum U. S. investment
months
of
Plus; because we have undertaken the biggest fall being in advances
i* world wide responsibilities—politito retail trade, personal and proeal, and military—which now cost fessional, etc, The main impact of
•
Area,! which
six
last
surplus
No
ever
—
MAIL THIS COUPON
——
—
$5
the
coun-
changed
greatly in so short a time. Yet
We haVe hon0red
these obligations.
NAME
and wil1 hon0r
ADDRESS
——
'
CITY...
ZONE
STATE
—
16
16
(1224)
The Commercial and Financial Chronicle...
porations,
Salesmen
one
work
unpopularity of "bothersome salesmen,"
of salesmen today. Says
sales work has special appeal to ambitious young men, be¬
cause earnings
are in direct proportion to hard work and
on
ability.
of
me
if
off
without
who
would
all
we
get
asked
be
better
not
bothersome
salesmen
in
door and
foot
a
has
the
did
i
want. This
that
reader,
right
that
her
to
up
in
be
She
Why
many
people
look
down upon
Roger W. Babson
get
this,
I
tried
clue
a
parlor
a
test
number
of
people
to
write down, as rapidly as possible,
came to them when
good
You
.
tomb
surance,
cleaners,
stones,
television
stockings,
women's
the
en¬
etc.
Yet,
those who- call
house to
sent
sell
only
sales
these
about
force
of
at
things
2%
this
of
the
to
of
I'm frank to admit
us, a
want
are
always
under
just
were
high-pressure artists
today
They
sell
out
with
never
and
to
get
to
portunities
Then
in
medicine!
blanket
the entire
•
What
So
let's
understand
reader
is
the
watcher.
work
day
longer.
it's
about
Make
Good
a
fellow
young
manufacturer's
merchandiser,
are
a
what
starts
repre¬
his
he
to
up
or
him
$250
per
$2,730 to $3,600. The
aver¬
is about $8,-
the average ceiling in
000-$15,000 in medium-sized
i: i i
.
:
-
v
sales
the
us
which
of
bear
if you can show
we
the
paths
nations
Ours is
Commonwealth
of
great
we
unity
a
a
and Southern
Hemispheres, of
and
races
This is the title of
which
earth
power on
syndicate headed by Blyth &
Co., Inc., Salomon Bros. & Hutzler
and
Shields
&
Co.
is
offering
publicly today (March 26) a new
issue of $16,000,000
Georgia Power
Co.
first mortgage bonds.
30-year bonds are priced at
100.90%
turity.
the
to
yield
The
•
issue
from
from
ma¬
awarded
was
/'•'/
•
sales
on
' •..
this,
concurrent
•
to
competitive
-
Proceeds
cor-
3.70%
group
at
$12,- Tuesday./
stock
to
additions
The
Profit
bonds
April
1982
sale
300
26
OFFICES
Montgomery Street
SERVING
INVESTORS
IN
•
1,
and
CALIFORNIA
AND
100,000
to
'the
company's
72,996
$112,244
60,044
53,325
46,611
$581
$5,587
6,794
6,164
589
566
$6,948
$6,205
$5,598
10,244
3,523
6,786
1,118
54,889
Underwriting
-
$3,296
7,538
__
Expenses
Profit
before
590
Taxes
'
•
-
n;':
.
Less
'
,
■
11,185
4,631
i
$6,721
$5,668
$6,554
*63
*38
5
$6,784
$5,706
$6,549
Minority Interest
Profit
♦Loss.
The above figures do not include certain
miscellaneous items
as
gains or losses from security transactions
which, it is
properly a surplus charge.
Translating the above figures to a per share basis and adjust¬
ing for the increase in the unearned premium reserve, the Fire¬
man's Fund annual report shows the
following result:
are
more
Earned Per Share—
Before
Federal
Income
Tax
n>52
*.%l
$5.09
$3.02
$5.46
3.33
2.46
3.26
1.05
2.31
1.34
4.38
4.77
4.60
After Federal Income Tax
Add:
Equity in Unearn. Prem. Res. Incr.
at 35%
Adjusted Earned Per Share
at
As
tions
can
of
be
195«
callable at
are
prices
gen¬
ranging
prior
from the adjusted per share
figures the opera¬
Fund have been much more stable than the
seen
Fireman's
underwriting record might indicate.
statutory underwriting profit
1952.
was
was
In other
reason
year or
in
1951
the
substantially
or
the $3,296,000 of
the profit was lower that year
attributable to the large gain in the volume of business and
the increase in the unearned premium
which
higher by
was
When
an
over
reserve
the
during that period
$13 million.
:
adjustment is made for the equity of the stockholder
in the increase in this account, the adjusted
and
words
only $581,000
$5,587,000 of the previous
However, part of the
final
earnings present
operations.
/
.
a
much
underwriting results
more
stable picture
of
'■
s
While it is not
results will be
likely that this method
of
reporting operating
generally adopted, it is encouraging to
see one
of
the major insurance companies
give it recognition.
redeemed
1954,
to
special
100.14%
in
redemption
Bond Club of Belroit
NATIONAL BANE
17 N. Y.
of INDIA. LIMITED
Head
to
the
Government
City
Bank Stocks
DETROIT, Mich.
of
Detroit
summer
2,
at
hold
-.i
an¬
mem¬
Tuesday, June
the: Meadowbrook
•
•
Country
'
Branches
26,
in
A Ten-Year
Bishopsgate,
land
■'
Protectorate.
Authorised Capital
Paid-up
Reserve
Capital
Fund
£4.562,500
£2,281,250
£3,675,000
Survey
Request
Members New York Stock
Exchange
Members American
Exchange
lt«
BROADWAY,
Stock
NEW YORK
Telephone: BArclay
description of
banking and exchange business.
Trusteeships and Executorships
on
Laird, Bissell & Meeds
The Bank conducts every
also undertaken
i
Bulletin
In
India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-
Bond
its
golf party for
bers and guests on
Club,
The
will
Office:
London, £. C. 2
Summer Golf Party
nual
NEVADA
$126,903
81,972
Federal Taxes
and '
April 1, 1954 to:100.10% in 1982.
Club
San Francisco
$140,157
Incurred
.
Kenya Colony and Uganda
Los Angeles Stock
Exchange
Exchange
—
Expenses
Net Investment Income
less than the
sale,
of,
prices ranging from 100.90% prior
Members
Midwest Stock
from
Investment
Incorporated
•
Earned
Loss
Investment Income
Bankers
Exchange
13,222
Underwriting Expenses
the
redemption
from 103.90% if
to
San Francisco Stock
5,998
$119,93$
7,692
3%%
The
to
First California Company
$140,125
A
eral
upon request
$146,155
such
Group Offers Bonds
Of Georgia Power Co,
comprehensive booklet
Copies available
&
believed,
of
growth of the world's largest bank.
Losses
stand
can
us.
-loans in the amount of
$3,000,000
and for construction or
acquisition
graphically reviews the history and
1950
an¬
undeveloped ter¬
strong enduring
When this great Commonwealth
is joined with you in common ef¬
no
Written
—
i»5i
.
one
utility plants.
a
Premiums
Net
against
operating
000's Omitted
whole.
fort,
*-
~
1952 annual report the
economic
great loom weaving to¬
gether the independent strands of
East and West, of the Northern
cient
.:
Using figures taken from the
Investment—
parent organi¬
zation, The Southern Co., wiy be
used ; to ; repay
temporary .bank
AND AS AN INVESTMENT
This is especially true in comparing results from year to
strength and political significance.
mon
ITS RECORD AS A BANK
period.
year.
by
partnership.
bring to this partnership
of
the
estimating earnings gives
operating results for the
climb to the plains
can
level
more
and
$6,000,000 received from the
sale during February and
March,
1953, of additional shares of com¬
Bank of America,
,
It is believed that this method of
accurate indication of the actual
Premiums
rich fu¬
a
with
more
Increase in Unearned Premium Res.
with
/
basis.
a
something rich
us
common
Underwriting—
repair the misery
footholds
With
the other hand and in
on
specialists in insurance stocks, has followed a
policy of computing the stockholder's equity in the unearned pre¬
mium reserve and reporting per share
earnings on an adjusted
many
very
shares of preferred stock,
together
h'fl.i
.».11?
practice of
record of Fireman's Fund for the past three
years was as follows:
the
There will indeed be
op¬
commission.
on
strictly
Fireman's Fund
like
or
premium reserve and its impact on earnings.
words, most insurance companies report underwriting
a statutory basis making no adjustment or
giving no
or decrease in the unearned
premium
and the equity of the stockholder in this
account.
overhang
"King Lear":
to
dost
the
of
sources
earnings on
recognition of the increase
is
about me."
makes
management ranges between
She
With
good salesman he
age, after five years,
000;
I'll
ritories, into
on
did not fully
importance of
the salesman to. our
economy.
good
Starting guarantees for college
seniors wanting to sell
range from
selling profession.
my
little
the
whether he makes $25
not
condemnation
The
clock
a
and
week.
type are also found in Con¬
gress, in labor unions, and,
yes,
a
not
will want to work
a
this
even
with¬
work
own
wishes
a
to
frustration, be able
pressure.
them. If he's
prospect, get his confidence and
give him real service. But rqen of
put
a
retail
or
are
tomorrow.
close
has
sentative, wholesale salesman,
specialty salesman, sales engineer
learned that really to
have
you
gone
who
as
to
colossus
but
thou
as
Incomes
have, and
have
low
as
able
Salesmen
Whether
will
be
his
Salesmen
we
for
And
'
get
consumer may
of
is
dollar
afford to its
brim of it,
mass
creative salesman
always
In other
and you remember what Glouces¬
ter said about it—
me
grouns, the annual report pub¬
Insurance Company of San Francisco
Of possibly greater significance so far as the investor
is con¬
cerned, is the method of computing earnings. Fireman's Fund is
practically the only major insurance company which gives official
recognition in its report to stockholders, of the increase or decrease
a cliff whose
high
bending head
Looks fearfully in the
confined deep."
/
"Bring
^*aior insurance
Fireman's
j experience of the individual underwriting
of investment income. This
helps provide a
understanding of the operations of the business.
better
and
The
resultant
article
organize
He
few get-rich-quick boys who
to make a fast buck.
They
here
and
breakdown
reserve
a
the
lines and the
people to raise their
must
salesman
Today
probably
ability.
by
Not only does it provide a discussion of the
overall underwrit¬
ing and investment results and problems for the
year, it also gives
"There is
terrific bang out
because he knows his
the missionary—a
honesty, unbounded
persistence, firmness and
adaptability. The good
Good
Importance
and
lished
in the unearned
The
not
like
ture for all of
work
The
world
because
men
Ap-ti? the
is one^of the most comprehensive and informative.
15
page
can
advantage
the
a
stand extreme
98% are selling to the nation's
millions of retailers and
corpora¬
tions.
The
work
gets
salesman
total
country.
own
per¬
in direct proportion
selling
unusual
your
strong that it
so
special appeal
a
young
cause
energy,
repre¬
from
competitive terms.
our
lot of courage,
cyclopedias,
silverware,
"im¬
ported" linens, books, magazines,
field. To succeed,
The Free World
The sales¬
Unlimited
good,
spirit
the
silk
lingerie,
that, by
keep
can
gear.
This Week—Insurance Stocks
to
Economic Efforts of
king-pin
Ceiling
are
same
A
vacuum
sets,
realize
not
is the
$2.00.
will
life in¬
.
.
does
important
production, the
I mentioned the word "salesman."
is
Britain's Share in
over¬
standard-of-living. He knows, too,
that
if only a thousand people
buy an article without salesman¬
ship, it may cost $10.00, but with
the words that
Try this experiment.
get responses like this
business
of
mighty
job
efforts
used
a
his
at
con¬
economy,
the cliffs of Dover in
hard
of
by many adver¬
tising agencies in preparing copy.
asked
a
salesman
a
which, by
psychological
I
is
ambitious
fo
number of people, a test
the way, is standard
procedure
of
fear
By H. E. JOHNSON
a
Continued
satisfying
and
earnings
to
on
She
Sales work has
To
the sales
and
real
a
And
use.
free economy, and
Job
the
salesman?
fastest,
make
our
10
per¬
however, he has to have the in¬
terest, aptitude, persistence and
son.
to
young
military
can
fear
the
advertising
in high
man
ahead
to
executive
ahead
a
Bank and Insurance Stocks
who
men
look
for
time
same
enter
the
enough
wants, only he and those who
so
today
is
aconomy
him.
do
major
now
our
sell
had
for
tions
the
new
just
higher aspira¬
j
J
goods we
creating
salesman.
a
■if
the
I
way
get
tribution
grasp
of
amount
that the salesman
son
to
son
need, but also all the
we
production.
said
hoped
top
country has learned personal qualifications.
tremendous
wouldn't grow
\
our
material
a
to
seem
the
the
are
labor
no
produce, not only all the
consumer
mother,
»
to
things
people don't
she
Mw<,
quite
idea that
how
sell
if
not
are
to
As
the
years,
Asserts good salesmen make good incomes.
readers
my
They
up
positions.
Mr. Babson points out importance
One
earnings
some
who need
group
unions.
By ROGER W. BABSON
After commenting
with
going much higher. Salesmen
the
Thursday, March 26, 1S53
Bell
(L.
A.
Teletype—NY
5.
N. T.
7-8500
1-1248-49
Glbbs, Manager Trading Dept.)
Specialists in Sanh
Stocks
Volume 177?;Namber 5206
.
.
.Tfec Commercial and Financial Chronicle
i' "'-ry
•■'v
IT
(1325)
;
Aiding automotive manufacture with wide
WEIRTON
STEEL COMPANY
Weirton, W. Va. World's largest independent
sheets from
'■
of the world's
in the mill
through the rolls at speeds
emerges as a thin sheet.
These
As well
steel..
:(,
Steel
safety, durability and beauty of the modern automobile are
large measure to the steel industry's ability to develop
facilities for the production of extremely wide sheets.
electric
due in
such parts as passenger car tops,
panels for hoods and
floors* and sides for delivery trucks.
motor.
starts
passes
rower
as
manufacturer of tin
largest mills
The
high-quality wide sheets enable manufacturers to make
automobile parts in one piece which otherwise would have to be
fabricated, at greater cost, from two or more widths of narrower
y*
•
one
as a
up to
other
plate. Producer of
important steel products.
many
thick three-ton slab,
2000 feet
a
minute and
."«?•
making extremely wide sheets, this mill rolls the nar¬
more
generally used. Sheets of auto-body thickness
from 90 to 60 inches can be delivered, after further
in widths
processing by cold rolling, in
a
lean
*
big mill will be further increased when new facili¬
ties for producing larger slabs are completed this year. In addition
to
making sheets from 90 to 72>^ inches wide in the present 512
foot length, it will then deliver 72 to 33-inch-wide sheets in a single
unwelded coil 1860 feet long—more than triple the present length.
huge mill illustrated in Peter Helck's painting is the 96-inch
mill .at .Great Lakes Steel Corporation—National Steel division at
Detroit, Michigan. This mill was the first of its type to be built
to this size and is one of only three comparable mills in the
steel industry today.
The 96-inch mill and its
The mill's massive,
wide
finely engineered machinery is arranged in a
straight line more than a quarter-mile long. Its ten "stands"
house heavy rolls 96 inches wide, each driven by a powerful
NATIONAL
range
.*
single unwelded coil 512 feet long.
Benefits of this
The
1
>m<\'
widths
'
intf
:
GREAT LAKES STEEL CORP.
i
i
Detroit, Mich. A major supplier of standard
and
special carbon steel products for
of applications in industry.
a
wide
range
product are only one phase of National's
of steel production. They demonstrate again the
progressive spirit and emphasis
on
quality which make and
keep National one of the nation's leading producers of steel.
CORPORATION
STEEL
GRANT BUILDING
PITTSBURGH, PA.
STRAN-STEEL DIVISION
AN
INDEPENDENT
COMPANY
OWNED
BY
MORE
THAN
19,000
STOCKHOLDERS
Ecorse, Mich, and Terre Haute, Ind. Exclu¬
sive manufacturer of famous
and Stran-Steel nailable
Quonset building
framing.
*
'
■
y
:
,
-
iv
U
h -j
i
-
-
V
,
°
j::
„V
,
n w:;-:..
THE HANNA FURNACE
NATIONAL MINES CORP.
CORP.
ore
from
Houston, Texas. Warehouse and distribution
holdings in the Great Lakes
area.
facilities for steel
Supplies high grade metallurgical cbal for the
Cleveland, Ohio. Producer of iron
tremendous needs of National
for
extensive
-—
Steel mills.
production of
various types
of pig iron#
NATIONAL STEEL PRODUCTS CO.
HANNA IRON ORE COMPANY
Buffalo, New York. Blast furnace division
products in the Southwest.
^
1S
(1326)
The Commercial
able and unforeseeable shifts pro¬
Home Outlook Good—
duced
Former New York investment banker foresees
war
political uncertainties. Says there are "economic
variables which may knock forecasts into a cocked hat," and
calls attention to more than $10 billion of depreciation and
obsolescence accruals by business firms, which can bolster
that
sensible
way
that
the
most
to look at 1952 and
1953 is to start with consideration
modern world,
and has
happens
here
enor¬
an
effect
mous
t h
on
e
econ¬
omies
of
rest
of
world
and
t h
and
then,
make
armchair
to
tant
Kempner
an
visit
of the
some
other
S>. Marshall
free
—
non-free
—
to
e
the
impor¬
producing
countries
and
friends
in-
their effort to sell to rather
buy from
A decrease of
us.
so-called off-shore procurement by
been
has
-
exports will decline furoverseas
3
Materials'Field
.
We
success.
few
poorly
and
lack
all
advised
of
these
s0
that
5e
ci0sed
to
plastic
markets
new
by similar
us
it,
The
of
ogre
before
high taxation has the
throughout
us
tended
to
1952,
government
about
run
expected
are
$11,3'0CT,000,000, the
to
same
restrict
^"Xh
won't
future
company
and
forecasting
our
volume
lesser
with:
somewhat
earnings. However,
a
bearing
come,
I
said
con¬
substantial
cealed source of
subsidies in
earlier
that
I
recession
mind.
expect
in
no
the
wage
earnings, namely,
those arising from certificates of level; high mass purchasing power
necessity authorizing accelerated may continue. Certain industries
depreciation, may serve to bolster seem slated for good business.
frequently
in the future. A fact The automobile industry's indicaneglected is that ac¬ tions are that nearly 5% million
cruals
depreciation
the economy
for
solescence
are
and
added
exceeding $10 bil¬
1.2
lion annually.
Further, the reduc¬
tion or elimination of the Excess
Profits Tax may provide substan¬
tially higher
will be
cars
obr-
sold, to which
may
units,
a
be
truck production of about
a
million
that
so
total
6.7 million motor vehicles
may be
produced
which
exceeds
every
previous
earnings, especially
except
year
1950.
Ex-
for
pects
future
business
experimental work
no
accompanying
market
assumptions
number
of
in
1930.
concerning
will
people who
of
the
distribution
of
only
18
in-
6'%
a
1930's. Thus
will
affect
fewer
mar-
your
mer-
Obviously,
business
all
this
that
will
has
a
the kind
on
be
done
in
the next decade.
con-
Forecasts
goods and services, the age
sume
between
tremendous influence
facts
are
working
our
decade, and in the 1940 decade
this age group increased 25% over
an
survey.
Basic to all these studies
and
this,
group
have
chandising plans. The age group
over
60 will increase by 29%
during the 1950's over the 1940
major
project is undertaken without
age
60—will
of the
riages
pros-
Even
any
9%, reflecting the low birth rate
research
products.
our
that
means
crease and actually the group between 20 and 29 will decline about
group spends considerable time in
sales
course,
in contrast with
particular
my
business
our
profits as in 1952.
Despite the drop in
many corporations have commodity prices, there is a like¬
lihood
of
reported
increased
business
a high-level of farm in¬
or
that
so
In
years.
of
the 194(Ts.
over
merchandising standpoint
force—the
errors
will work in the
we
a
article for school-age children will
have an unusually large market,
a
be vigilant
us
increase of 55%
an
From
standards
name
Let
ago.
years
a
applications
product
nearly ruined the
few
how
remember
.
industrial
giant of
the
whatever
"
our
page
$700,000,000 from last year's figure 0f
judgment.
*
to
$12 500,000,000
was
recently.
period. The price-rise in goods
0ther major problem is the
iorecast by the National Foreign
was halted, but
{ th
economic climate
productivity con¬ Trade Council
Imports mcludmg
tinued to advance.
of the United States, the
for
as
crease
than
the future economy.
me
our
ther,
from
Thursday, March 26, 1953
Plastics Invade Structural
are examples of that kind of
Now, granting that the variables
might knock any guesses for this
year into a cocked hat, what may
we consider
likely for the United
States this year?
It seems likely
probable good
Financial Chronicle...
the
on
dislocation.
the domestic front, but finds situation abroad full of
to
The etiect
the Iranian oil nationaliza¬
or
tion,
economic and
seems
Continued
political
petroleum industry of the Korean
By S. MARSHALL KEMPNER*
It
international
developments.
But Not So Abroad
year on
by
and
of
the
distribu-
age
tion of Canada's population are
gives the number of people complicated
by the immigration
abie to produce goods and serv- factor.
Historically, Canada has
ices, and the probable output per lost almost as many people to
worker. This story adds up to an the
United States as you have
encouraging picture of a dynamic gained by immigration. Many of
population
our
vvnicn
economy wlt)n great opportunities your
best
young
people
have
for intelligent merchandising and sought opportunity south of the
industry as
high base.
substantial rewards to those who border.
The
postwar • industrial
it reaps results from the
ship of the parts to the whole.
huge ex¬
One of the most important eco¬
understand the significance of this boom is changing this trend. "ForHere at home the business
penditures in 1952 of about $3.2
pic¬ nomic
developments during 1952 billion for
population story
tune" magazine states that since
ture
in
1952
plant expansion and
was
replete with was the accord
reached between
In
the United States the total
improvements. The public utility
1945 a total o£ 625'000 Pe°Ple have
xecords. The gross national
prod¬ the Treasury and the Federal
Re¬
industry and the natural gas in¬ population is largely the differ- entered Canada while only 114,000
uct—economic jargon for the out¬
serve Board—the fact that
inter¬
have left for the United States.
dustry, constantly growing in all -ence between births and deaths
put of goods and services
as
est rates (the hire price of
This change, which can easily turn
money) its phases—production, transmis- since immigration is
well as personal
quite small,
income, reached were permitted to rise, and
gov¬ sion,
and consumption—ar e ex- This is not equally true of Canada into a reversal of the historical
a
new
high. American business ernment bonds allowed to
reflect pected to increase their
total rev- since immigration into Canada as
trend, may give you a higher
last year spent about
$27 billion them by dipping below
par.
The enues. The petroleum business is well
ratio
of
workers
to
consumers
as from Canada to the United
tor expansion and new
equipment, financing of the national debt will
than in the States. This will
expected to reflect in 1953 an in¬ States
and
per¬
plays a much larger part
incidentally indications are be an important aspect of our
crease in
consumption on its prod¬ in the picture. However, in both mit a faster rise in your standard
that it has committed
approxi¬ economy in 1953 and the years
ucts of between 4 and 5%. In the
living.
This
is
needed
as
countries the birth rate has risen of
mately that amount for this year, ahead. A little over $106 billion is
building field it is anticipated that
Canada's gross national
the importance of which should be redeemable on
product
demand, about $57 for the fifth year in succession during and immediately after the
per person is three-fourths that of
war
emphasized
in .considering
years to an unexpected exthe billion is due in 1953—of which over *
1,000,000
residential
units tent. In
the States. This is a chicken and
prospects for 1953. Money in cir¬ $9 billion in
fact, immediately before
Treasury C/Ds are will t)e built. The television field
culation' crossed the
the
war,
in the United
States -egg situatiton. .More workers are
$30 billion due Feb. 15 (arrangements for the
may perhaps stimulate the imagi¬
mark.
many students ot population were nec<£
refinancing were announced by nation most. There
to raise gross national
are today some
Of course, government
talking about a stabilized popula- Product whlle a higher, per capita
spending Secretary Humphrey Jan. 29: part 110 sending stations and
perhaps
in one-year 2V4%
Las contributed a
^Qn
^tle
great deal to
prospects of fu- income is needed to attract the
C/Ds, part in 20,000,000 receiving sets in use.
this high level of economic ac¬ five-year, ten-month bonds bear¬
ture
growth. These individuals workers,
tThis year another 150 stations
;
may
were badly mistaken in their foretivity." The budget presented by ing 2 %%
interest) — approxi¬ be put into
There are many hazards — imoperation and perhaps
ex-President Truman
mately
$38
billion
due
in
one
to
casts,
for
between
1941
and
1950
gives rise
proper government action, a slow6.000,000 sets will be produced and
five years, and
to the thought that
$12% billion are sold.
the United States had 33 million down
despite paring
in
:
rearmament,
and
a
convertible into five-year notes.
down by the new
births
which
was
37% more than United States recession could upAdministration,
I touch, in
humming-bird fash¬ in
Only
business is bound to be
$22.8
billion
is
due
in
the
1930's.
A
further
increase set for a time Canada's industrial
active,
ion, on some of these basic indus¬
five to 10 years, and
even if the Korean war
$31.1 billion
of 12% is forecast for the 1950's growth rate. Don't succumb to
should be
tries. not to indulge in a form of
any
in 10 to 20 years. In
settled. Popular short, obliga¬
with the death rate
thinking has it'
steadily de- short-sighted panic philosophy for
glowing auto-intoxication as to
tions
redeemable
within
that the peak of
five
in
the
military expendi¬
the future, but merely to
long run the future belongs
point out
actual numbeis the
years make up almost 80% of the
ture of about $54 billion will
United
be
States
to nations with raw materials and
msome of the evidence for believ¬
population
total debt, and the
reached
in
refunding of
creased
19
mid-1953, and that such
million
the
intelligent
during
people.
Canada
has
obligations is bound to exer¬ ing our economy will again be in
there will be a
1940's
and
is
tapering off there¬ cise
add both.
expected
to
high gear.
an influence on
money rates,
after. I happen to be one of those
another
'22
million - during
the
money supply, and the
who question that
economy at
Not So Good Abroad
Favorable Plastics Future in
timetable and
1950's giving us a population or
J; ^
large.
in
areas
an
effort to understand the relation¬
in
the
of
case
those
which have not had
panded sales
companies
are
likely to be wit¬
nessed in the chemical
a
—
,
.
•.
■
■
,
believe
until
decline
a
well
into
believe
the
lacious
that
tirely
will
point
spending, and that
business
is
drastic
a
bound
recession.
ment yes,
of
on
Economic
Moreover, I
view
economy
dependent
occur
.
1954.
the
not
fal¬
is
en¬
That a good deal of inflation
has
been written into our
system per¬
manently is witnessed by the high
prices of goods and high labor
falling off in
costs.
to
Personally, I strongly doubt
induce
a
government
Some
but without
a
adjust¬
semantic
any recession in wages.
forts have
the
have
economy
been
means
in
a
continuous process of
adjustment.
For example, the outbreak
of the
Korean War induced a
huge buy¬
ing
program,
tures
national
expendi¬
increasing in the
first year
by some $54 billion. This increase
was
not all
part
business
tion
and
part
by
for
purchases
buying,
inventory
capital
have
second
by
part
by
accumula¬
equipment,
government
defense.
areas
the
scare,
in
made
to
control
of
monetary
must
be adult
and
there
are
forces
in
in
our
a
new
economic
measure
of the
such
controls,
we
recognize that
or
life
variables
which
have
affected the
efficacy
classic regulatory
methods,
as
the control of discount
rates and the open-market
buying
of
the
Federal
Reserve
military expenditures; policy
represented
consumer
been
While ef¬
inflation thru price and
wage con¬
.as
well as the traditional
quibble, I do not think breadlines,
or
huge unemployment. Segments trols,
of
Variables
and
System. Some important variables
The
are:
purchasing
power
exer¬
cised by the Pentagon at home
and
abroad; the
expenditures
aid
Shifts within these
been taking place. In
year after Korea the
the
amount
of
granted
form
overseas,
of
money,
economic
whether
in
goods and
orders for prod¬
ucts manufactured
abroad; the ef¬
commodities,
or
backlog of consumer demands was fect on our economic life
produced
largely filled, inventory accumu¬ by pressure groups, whether those
lation by business had
of
been • ac¬
Agriculture, Industry, or Labor
complished, and only expenditures
for national
(you
are
all
familiar
with
security increased, by subsidies, and presumably
call as well the steel
about $15 billion
over
the 1950-51
•Remarks of Mr. Kempner at the
City
Commons Club,
Berkeley, Cal., Feb. 13,
1953.
i
crease
farm
you re¬
wage in¬
and the rise in steel
prices
during 1952, to give but two
amples), and lastly amongst
variable forces
are
ex¬
the
the imponder¬
But what of the rest of the Free
World?
What about its portion
174 million people in 1960. Canada
has
grown
and
faster.
its impact
our
influence
we
like
an
it
on
on
us,
it?
well
as
percentagewise
as
For whether
or
not, there is today
interdependence economically,
nations
of
amongst
Free .World,
the
has happened, and what is
likely to happen?
Obviously, in
cover
even
a
with
:way of-Hitting.about, let's take
look-
first
a
will
a
1940
21%
decade
minimum figure since
a
continuation
a
of
Canada's
were
growth
' immigration
undoubtedly play an imporpart.
Now
similar to
population
a
if
our
China
increase
of
countries
or
India,
this
nitude might simply lead to
''.starvation.
;
the
industrial
single segment^tant
competence; but if I may be
forgiven this glib, humming-bird
The
conservative
with
-
short talk of this kind .we could
not
been
and
certainly
What
a
has
during
figure
for
Canada's growth during the 1950's
is thought to be 20%. This is
politically, and militarily
the
There
growth
glance is toward the..
even
Great
I
would
guess
a
magmore
that
Britain
would view
East. We have been tied or
bogged percentage increase in
population
down in Korea.
The toll of re-.,
with
some
apprehension.
Howsources. in men and arms, is most
ever, the situation for-Canada and
significant, and suits the: Soviet
for the United States is
entirely
book. Perhaps the stalemate will
different. With our abundance of
be broken in a few months' time.
natural
resources,
our
technical
There
is
the
possibility
blockade
that
a
of'the ChTnaToast '(much facilities and know-how for
Canada
of
I
plastics fabrication
ing
not
ducinS .goods,
take
a
•
.
course
of events.
•"
;
•
In Indo-China the French have
waged battledore and shuttlecock
warfare.
treasure
Their
has
cost
been
in
blood and
'
high,'; though
Continued
on
pa ffe
unusual dynamic character. In the
to
for
most
of
these
who
conserva-
than people in the States,
New products and changes in liv-
ing procedures,are
difficult
more
to introduce north of the border,
Canadian plastic converters most
maintain high performance quality and plan intelligent merchandising schemes to reap profits in
the
markets. Industrial
for plastics will be a some-
consumer
uses
what easier
The
for
the
United
question
sters
market
forecasted
and
Factors
in
the
so
oldsters
our
that
raises
must
force
many
be
are
is
young-
without
standard
consideration here
the
proportion-
working
to support
crease
exploit, i
distribution
States
of how
smaller
to
age
of
a
de-
living,
into
taken
how many
women; might
join the working
force; the slowly decreasing aver-
country to the urban
already^ born. This is
of
tive
of school age. There is little
guess
are
deal
recognize
more
age
work *here
Canada.
Canadians
overcome
Pext 10 years 43 million children
in the United States will become
39 "children
,
also
by and large
are
ately
may
in
great
a
but: I
the cleverest kind of merchandis¬
going
which
with
<
intangible factor that requires
one
pro-
and
this
say
confidence
population inplace),
the
utilization
of
the
crease ls a stimulating factor in
Chinese Nationlist forces, the fur- our economy- Further, there- is
ther
build-up of South Korean another factor; namely, a change
troops, and perhaps additional aid
a§e
group distribution that
from our allies may
change the gives this stimulating influence an
debated
.
All this bids well for the future
even
hours of work
trend
is
of
still- continuing
and
per
population
week; the
from
in
the
?
the
which
areas,
*
States
accelerating- in .Canada; and
.
Number 5206... The Commercial and Financial Chronicle
Volume 177
the movement of population from
the
cities
.
the
to
suburban
This latter coupled
dising
tion
areas.
If
ing importance of suburban shop¬
we
prepare
overshadowing all these factors in
great
maintaining
in
standard of
living is
ket,
ing
our,
engineer¬
our
we
genius in
designing tools and methods to
get things done faster. In the past
ing
a
yet planned, he stated, al¬
though it is contemplated that
actual revenues will cover annual
sustained
we
plan
to
intelligently
serve
can
the
profit.
opportunities
problems.
desire?
and
mar¬
proper
There
What
are
interest¬
and
could
more
of
the
Hon. E. H.
City
Stuart
KlOih, Mayor
Texas;
of the City
Amarillo,
of
Jr.,
&
Co.; James B. Ramsey,
Granbery,
JV C.
.
...
management
and
eon were:
19
Marache & Co.;
J. Basil Ramsey, Lincoln E. Ca>«
Lilly, Auditor
and
interest
principal
require¬ of Amarillo, Texas; Dana Scudder, fall, and Robert E. Toolan, par ments of water debt at least one The National
City Bank of New ners of Wainwright, Ramsey cs
and one half times after paying
York;
Harold
Boettenus,
City Lancaster.
Trust
operating and maintenance costs Bank-Farmers
Co.,
New
of the enlarged system.
York;" John
T.' Haneman,
Jr.,
Neal Kellogg Opens
Financing of the project will not Albert Frank-Guenther Law, Inc.;
take place until October or No¬ Alfred T.
WOODLAND, Calif.—Neal Kel¬
Harris, The Bond Buyer;
vember of this year at the earliest- Edwin L.
Beck, The Commercial logg is engaging in a securities
It
is
proposed to increase the. & Financial Chronicle; David M: business from offices at 607 North
high level of activity.
with the grow¬
ping centers, brings forth product
distribution
problems. However,
importance
not
approaches. The construc¬
industry will be at
(1327)
Wainwright Ramsey '
>
50. Ellinwood, -Moody's .Investors Street.
;
c
•
Service; Walter Tyler, Standard^
a
population .of about 175,000 by. &" Poor's
Dobbrow With Hardy
Corporation;
Richard
increased
around
30%
each
Mayor E. H. Klein of Amarillo, 1967, as projected by the consult¬
Whitcomb, Phelps, Fenn & Co.;
decade.
The population
Charles DobbrOw, Jr. has be¬
growth Texas,
guest of honor at a lunch¬ ing engineers.
Citing the rapid William J. Riley, Drexel & Co.;
as
I
come associated with Hardy & Co.,
previously
mentioned
is eon given March 20 by Wain¬
growth of Amarillo, the Mayor P. S Russell, Jr., Glore, Forgan
estimated to amount to about 15%
30 Broad Street, New York City,
wright, Ramsey & Lancaster, at said The present population esti¬ & Co.; Albert J. Milloy, The First
during the 1950's. If we can con¬ the Bankers Club, stated that his
mate is slightly in excess of 100,- Boston Corporation; George members of the New York Stock
tinue
our
productivity increase city plans to spend about $7,000,000 compared with the 1950 census- LeVind, Blyth & Co., Inc.; Carl Exchange. Mr. Dobbrow was for¬
per worker, we can take care of 000 to double
the- .output of its
of 74,246;
Hensen,
Lehman
Brothers; merly President of Income Build- |
these youngsters and oldsters and
•.
existing
water system.
Details
still
continue
to
M.
" Etfinger, r Halsey; erS," Inc.
improve
our of
the
necessary
financing "are
Among the guests at the lunch-' Charles'
standard of living. Canada should
decades
in
national
product
the
States,
gross
our
existing
Entertains at Lunch
worker has
per
to
daily
capacity
millions
100
gallons
from
to
.
*
serve
-
r
.
do
/
better.
even
addition
In
to
workers,
en-
gineering and management genius,
and
good government, we will
need to invest some money in ad¬
ditional
production
?.
«
•
-
v
Our
economist,
Mr.
Dean
estimated that $200
company
Carson,
has
billion
in
ment
tools.
plants and equip¬
new
be
must
provided
the
in
next 10 years
in the United States
and $20 billion as a minimum for
Canada. Here again the
estimate
certain
the
because
Canada's
six
invested
cal
Certainly
these
of
sums
tries.
has
magni¬
the
is
impressive
-
they materialize they form
as
base for
prosperity
a
example, in
Canada
years
$20 billion in new physi¬
assets.
and
of
extent
dynamic growth is dif¬
past
tude
un¬
more
•
ficult to appraise. For
the
Canadian
somewhat
is
is
It
to
hard
T'
years.
'
...
visualize
in
recession
major
the
•"
"V
any;
10
next
-r/.
f
ir.
'
'
.
coun¬
our
r
"
'■/
v.?
•
Hr»*
'
Improved Technique Needed
.
'The
need
to
tivity
offers
a
the
to
prodiicts
lower
a
is
power
plastics
ft-
Better
produced
expenditure of man¬
the
of
type
that
job
There
do best. All of us en¬
speculations about new
-'V
plastics products. I doubt if there
is anyone in
this
himself
asked
many: steps a
company may
why
.1
1
for gutters and,
iron, ceramics, and' :
steel for pipe. Wood is a versatile
material,, but even though one-T
with
forest
more
wood
We
a
>
At American
Cyanamid Company,
than
year
should
growing. .One
we
measure,
one
program
.
a
..
f.'
metals
light
and ; other
a
affect
are •-
able to
easily as
be
fully detailed
erage
of
example,
pro-.
program
cov¬
has been Worked out with leading
companies to protect the
pany's assets in the event of
protection against
a care-
of insurance
expected
or
a
com¬
major
un¬
catastrophic loss."
cyclical: changes 'which may adversely- *
is -covered
form plastic products as
copper
vides
using : 50%
are
3 IC"-
Product diversification, for
or
fourth;; of .the* world
and
•
insurance
house -'
copper
or
downspouts,
take to protect its:interests, its assets
3 its earning power.7-
who hasn't
plastics can't
room
wood, for »inside
replace
trim;
are
can
in
gage
produc¬
opportunity
industry.
plastics
performing
with
improve
great
or
more
markets.
An
-But the actual insurance
active
of research1 and development is
safeguard against :)oss of markets
-
with prevention
•of the
"thinking" starts
of loss. Full
use
•
is made
engineering services available
through obsolescence. This is particularly
Through the insurance industry, such
important in the rapidly developing-
.inspections of safety conditions pertain¬
chemical
ing to personnel, inspections of
as
'
which
steel
worked.
be
can
low
are
cost
Iron
but
they are
heavy and they do corrode.
The
the
and
.
;
>-•'
.
vessels and
structural
material
fields
In
are
exciting the in¬
genuity of all of you. Of course,
there
are
many
problems, but
-
intriguing
the
is
there
chemists
the
plastics
and
ean
an
tect
ment
of
;•!
-
use
of
designed to
pro¬
against liability for
loss
or
damage to its property,, against lia¬
'
of others,' and
person or property
against loss of assets by
criminal acts/"
important if we are to con¬
tinue the present growth rates in
so
the
company
bility for injury to the
niques. No other technical factor
is
the
program
pressure
machinery, and modern fire
protection engineering. Also, employee
training programs in accident prevention
are
continually being conducted."
injury to employees, against accidental
you
with the properties we
greatest single need to¬
speed-up in the develop¬
plastic fabrication tech¬
a
insurance
waiting
give
need. The
day is
addition, sound management dictates
and
market
and
industry J
possibilities for plastics in
;'
,
.
•
-
This modern
concept of "insurance" is
a
part of the company's overall program
dedicated
to
steady
progress
through
"molding the future through chemistry."
plastic products.
"
I have mentioned
the
•
highlights
growth
-
known.
only
Plastics
a
few of
potential
for - plastic
the
possibilities
materials.
versatile
of
are
the
most
structural materials
While
the
rapidity
and
magnitude of plastic developments
are amazing, the need for faster
development of fabrication tech¬
is of paramount impor¬
^During this decade the economic climate will be exception¬
niques
tance.
labor saving
The fastest
growing markets will be those
serving very young and very old
people's needs. The shifts in popu¬
lation may require new merchan¬
ally
favorable
to
processes and products.
*
-
AMERICAN VlMfiamia COMPANY
30
ROCKEFELLER
PLAZA, NEW YORK 20, N. Y.
20
(1328)
The Commercial and Financial
Chronicle...
formation
New Products
Through
lead
Papers delivered at 123rd National Meeting of the American
products designed to benefit industry and the individual.
LOS
ANGELES, Calif.—Exam- meter, identifies unknown mateination of the various papers de- rials
by increasing the characterlivered during the course of the istic
in which
ways
National
Meeting
of
Angeles, Calif., from March 15-19,
showed concrete evidence of the
leading role played by the chemical industry in contributing to
the well-being of both industry
and the individual.
Here
a
is
re-
with
Fire
Resistant
bubbling
Paint
paint that protects
fiber-board or acoustical tile from
fire was described at the
meeting.
Protection of these materials has
become
problem
a
portance
because
quantities
now
of
of
im
great
the
large
installed annually
homes as well as in
in private
public buildings,
it
ists
to
the
determine
unknown
the
contents
«The
to
flame
a
paint, referred
strikes
the
to^as an
new
intumes-
uGI!iiype coaJm&> 1* swells, chars,
a£
charred
ash,
shields
which
the
immediately
combustible
fiber
board
from the flame, according
George W. Mod of the Celotex
Corporation,
sented
Chicago,
the
report.
who pre¬
A.
W|atson
the
toxicology
Brackett .asserted.
"This
method should stimulate the group
0f analysts involved in the field
criminalistics
0f
j
legal medi-
made
ing
Celotex
Corporation,
New
flame
ArxliorJ
applied
which
and
resistant
lflro
nlocfoi-
like
metals
against
and heat
of
C.
ru;Pf
of
bio¬
*V Ultl,
by
the
partment
were
the
Reed
by
Col. D. M. Kuhns
Army
Laboratory
Ideal
Service,
_
Calcium, the most abundant ele-
Products, Inc.,
Culver City,
The
coatings,
from
the
The
amount
of
calcium
materials
sample of human blood
called
be
"mast¬
measured
ics," also have
in
good
blood
resist¬
to
ance
John
abra¬
C.
Zola
mastics
are
of
said
to
inhibit
corro-
certain
metals, prevent
donjon
ennnd
and deaden sound,
r»nnaoneo+inn
cnrl
condensation,
The
fire-resistant mastics have
mineral bases which are bound to-
gether with
synthetic resins, Mr.
Zola explained.
When exposed to
fire, the resin gives off
flammable
which
gas
"suffocate" the flame.
a
matter
a
Mr.
sion,
erosion,
impact and weathering, according to Mr. Zola. In addition, the
sion
is
by the
of
chemical
method
minutes
after
as
accurate
method
yet
the
patient,
declared, and the
suit is at least
a
serum can
new
drawn from the
Winer
in
as
re-
any
An average laboratory technician
one
The min¬
*
Crime
trical
H.
P.
new
Landerl
Dr.
research
B.
M.
delivered
a
mpdi_
"black lieht"
to
James
W
Brackett Jr. and Lowell W Bradford. This device, a
spectrophoto-
Dr
for
in motor
a
paper
Harold
P
Landerl and Dr. Bernard
gis, chemists of E. I. du
were
coco¬
impractical to
meas-
thermocouples (elec-
Dr.
Alexander
the
locations, then read
service test, thus determining with fair accuracy the operata
Alexander Silverman jng temperatures of the Various
parts of a piece of equipment."
*
Textile
Industry
glass
has
Ahead
Research
the
dustry's
been
ber
daily
tomer.
in the kitchens, a 95%
siiica glass is
available, table and
art
glass is abundant.
Highest
use
in-
num-
one
the
cus-
It
is
produc-
tion and utili-
zation
tile
of
being processed,
fibers, some of practically
silica, others with submicron
diameters, and glass foams, are
finding important uses,
tex-
materials
about
require
are
Glass
one
pure
chemicals
are
c 0 m p which
1 e x
process
the
is
prin-
John
dS^io^ton'of
E.
food
aeienuidnun
Hodge
feed
and
Ar^
__
_
concentrates, said John E. Hodge,
chemist
in
the
Department of
Agriculture's Northern Regional
Research
Mr.
Laboratory, Peoria, 111.
made the announce-
Hodge
ment
at
drated
symposium
a
foods,
on
sponsored
dehy^
by the
Society's Division of Agricultural,
and Food
"It
is
Chemistry,
expected that significant
developments
which,
follow
will
will contribute greatly to the control and prevention
nutritional
centrated
of quality and.
deterioration
of
con-
foods," Mr. Hodge said,
Reinforced Plastics
Nearly
inforced
made
a
of different
score
plastic sports
during
appearance
lation
re-
bodies
car
1952,
specu-
to how prominently this
material may
in
may figure
as
unusual
mass-produced autos of the future,
Actually, the idea of such
bodies
the
is
not
close of
precisely
World
new.
War II, a
car
'At
car
estimated, he was built on Owens-Corning Fibadded, that erglas Corporation's
Newark, Ohio
etye
protection
and
fashion,
Glasses to shield against harmful
Colored slides
"browning re¬
t i'o'n," a
Laboratories, giving rise to considerable
Washington, D. C., is frequently
introduced, borosilicate glass is in
rays
oc-
the
For Car
Looks
The textile industry, the meetjng was
by Milton Harris,
a FF1 s
to
in
*
.
lamps,
mercury
*
called
atomic
de-
desired
after
known
pointed
"Temperature indicating
paints, though slightly less accurate, can frequently be applied to
bulbs,
pound
of
for
each pound of
fiber pro-
shown of the
Milton
Dr.
duced.
Harris
Any
future
latest excavations at Glass House
o r
p.,
nTm^nVi
n
has
"everything"—
a tex-
according
to
A.
Heyden Chemical
piant, making use of reinforced
plastics not only for the body, but
for the frame
as well. Only metal
structurally in the car—a
j0int experimental undertaking of
Owens-Corning and a private auto
manufacturer—was in wheel as-
Used
Semblies.
Subsequent postwar automotive
reinforced plastics have
useg
included
1,000-gallon
oil
truck
involving "the production" of "syn-
thetic fibers and the development
0f textile chemical auxiliaries and
finishes.
San
is
New Convalescence Diets
The
grow-
and
Pont
de
rm,„
,
,
,
nounced
The
new
for
of,combustion chamber
study
deposit
body
material
for, its
growth, he
muscle and
said.
sue—have
ne®d for
m
a
A.
George Stern
a
,
tlle in(*ustry and
„
growth
m
the
•,
avoids
Wismer
heat,
—
which
energy,
and
Frer?lc
the
produced
treatment
by
a
that
formation of bitter, un-
at
essential,Sam,e
nu-
as
c^po
^
nthpr
thcrfi
™
™n
3rG IT13ny 3dV3nt3§GS
reinforced
COII*"
plastics,
high
^ength, low weight dimensronrf
maneny' colorabmty and '0\he'r
properties.
These
outstanding
characteristics of reinforced plas-
building new tics
repairmg damaged tis- Cal
been
iSrtHH
as
cars
^
Pedersen
for
time preserves ?hf
the
are
proven—now, technologi-
research
is
being
pursued
vigorously by material suppliers,
molders
and
others
toward
de-
veloping improved low-cost high-
volume methods for fabricating
reinforced plastic products.
T B^E BakerP who presented^the
fein^orce^ p.last^cs
d^T
l^
report
T^tophanr^
earilv -???? frly m W°X™
U'
nJ
Z
decomVms^ proiein
prot^n ineredSS
But, he continued, aecomposea
^servf^as ai^raft ra~
mgredient Ttially
Snfwn!Jeni
^
" nnlt
PA,e supply.
J
Concentrated nutrients
the
an
the industry is
cally feasible in terms
procedure
bv
Baker, Chemists, of
McGill University,
Quebec, Can.
provide
^.est?ra l,e x"
fmvp hppn
and Bruce E.
ac¬
is
only
and trucks,
but aircraft, farm equipment, resi¬
dential, industrial and commercial
shortening convalescence
from iniurv anH
SSSSXya'ndn ewTettod6 "in-
count
paper was presented by whether
^r' Landerl.
for
measure ^ac¬
There
materials
struftural materials,
nents in not
Better tasting therapeutic diets
for use before and after
surgery
n
M. Stur-
Nemours & Co., Inc., Wilmington,
de-
according
bv
Sturgis
technique
County La- studying engine deposits
Criminalistics," San cars was announced in
and
report'
the
inc
out.
counted for in,
or
in some
Detection
foods
Washington
temperature-measuring
vices),"
..
a"c
presented
presenieu
or
f/^".?1113
,,e
3* time
cur
by
a.
mometers
tions, and per¬
haps a textile
ists of the Santa Clara
of
this
peak temperatures of moving
parts and relatively inaccessible
locations by conventional ther-
g, literally
in
all
direc¬
A
employs
who
wxxo
"It is often
industry
tests,
do
chemical
should be
be used in murder and suicide investigations racehorse drug
service
in
minntit.v.
lamps marmfarturpd
manufactured in
quantity,
i
technique described by two chem-
vice,'
lomocr
Francisco,
*
can
in
in
ure
made
radar
area
Dr.
analyses
paints
Laboratory
the
Calif.
such mastic
technique, which
produced
lamns
C
print" drugs, poisons and narcot¬
ics by a rapid new identification
cines
are
industry,
George Stern,
Scientific crime-fighters in
po¬
lice laboratories may soon
"finger¬
and
tho
everything
that is, except
tile
Detecting Engine Deposits
v
to
himself."
new
C
*-">
during tee
m^Tulnglu
Thw theory
i,r"f;^lheSicl„inlu.siryl?
a new
weapon in man's at¬
tempt to combat uncontrolled fire
which destroys his
property and
The
d
u-
°ry announced
Jfh a^g Ts
in—
L^lexande/o/thrNava^'Re"
len
an
West
vides
*
milk
materials
R/r
formulation, whiph he said "pro¬
boratory of
Jose, Calif.
hot-spots
new
can
.
Mr. Zola told of
protein-rich
?" the >mpor7
for
for
nppd
mechanisms
the
search
high.
elec-
non¬
helps
other
run
a
measurement in five Point,
Virginia, where America's
™nrHin?iv hp pThcp tank trailers, truck cabs, passenger
minutes, and 25 determinations in first industry, a glass
factory, was iv linLT unHV, nrn/rpL in thl car trunk liners and convertible
nr-Potod in 1
1U1Kea
Willi
one
piUglCb^
1X1
lllC
hour, he said. Dwight M. created in 1608.
"hard tOp" Units. MOSt SUCh USCS
chemical industry.
Kuhns, also of the hospital laborato date, however, have been in.
tory service, was co-author of the
goals which are of vital interest limited 'production.
report.
Textile Industry for the West?
to the textile industry are those
Nonetheless, reinforced plastics
The
base, which is a poor con¬
ductor of heat, also gives
good
protection against fire damage.
to
th»
thp
he said.
proposed.
eral
Aids
the
body, is - the chief
constituent of bones, and is presquality optical glass is being proent in teeth, skin, and blood.
duced in a variety of colors for
Calif.
made
in
ment
n.rto
authors.
Photosensitive
Washington,
L. C.
Chemical
revealed
a-.
Lha"ging C?lor
and sodium vapor lamps are but a
few
of
the
highly
specialized
in
Hospital
Zola
an(j
lamp
c
and
Walter
acrent.iatpu
aeeentuated
various
stage
millions,
Daylight lamp
bulbs,
yellow
insect-repelling
lamps, sun lamps, infrared, x-ray
bulbs, flashlight, radio, television,
CIUCX.
made
are
albumin,
.
on
King,
^nnt^in^
chemistry de¬
,
i
ers
D
W;npr
fire
described
John
or
r
sub¬
Alfred
coatings,
mortar,
fiberboard
rwv.
plaster
protect wood,
t
by
was
whhstlnd^extreme
can
eating
Silver-
Bottles,
dif¬
delivered
Flame Resistant Coatings
Viae
ha«
be¬
are
all-time
a paper
energy
preparations
from casein, egg
and
manufac¬
reached
with
the
was
ject of
considered.
jpmanri
thlt
tured, accord¬
ing to Alex¬
sys¬
blood clotting,
the
Th
n
onri
central
and
be
as
labor
meeting.
have
rapid, precise method for
determining the body's calcium man, Univerievels,
for
use
jn
diagnosing s*ty of Pittshardening of the arteries, weaken- ^ u r gh,
Pa.
The
ing of the
silvering
of
mirrors
has
bones, upsets
also
co-authors.
at any
has
ander
tem,
must
such
the
or
ever
A
the
mind
report.
ap'proache'dItheperTei- ?wo otheTcheS'of the laboratmn nf nintp diace
Sla
t!Pgrl3SS'
and thC largeSl to1
p
piaies
ever
Dr' JA?k E- Cowling
and r>r
Dr.
peter
Peter
ts-.
Chapman and Mrs. Alice C; Weil,
of
which
processes
i
ousiy
-
in
in
ture
haye
been
devei0ned
bv
chemists to help in the design of
airpjane engines and heating and
appear-
What's New in Glass?
adoption of spectrophotometry as a routine procedure," he "added.
nervous
problems
market
deP°SU gr°Wth'
*——i..
and
radio-
Window glass, ground and
potished on both sides simultane-
the
to
is
The
relatively short time
Mr.
ficulties
were
the
jTcerned nowTake™anewtck" °'
cine
lead
This new technique makes it
possible to observe the formation
and removal of deposits
during a
_
approach
cial
occurred."
Calcium Level As Health Factor
When
a
gests
of
said Mr.
presented the re-
chemical
of
of
anC0 of tee deposits at any time
cooling equipment, it
during their formation only sug- aj-
samples,
entire
use
tetraethyl water requirements
he time it is occurring,"
^on
port.
problem
the
Dr- Landerl stated.
compared
standard
pointed
was
out.
to
be
patterns made by
known materials, enabling chem-
the
A
absorb
"Drug-prints"—records of these
measurements—can
Brackett, who
port of the highlights of some of
developments described at the
meeting:
they
light.
the
the
containing
which
Although New England and the by
breaking them down ehemi"The exact location and distri- South are traditionally the sources
cally with sulfur dioxide, Profesbution of the radioactive lead salts of our textiles, perhaps the West
sor Baker
explained,
which this additive deposits with- can compete favorably with these
in the combustion chamber can areas
as a
textile center, the
Food Spoilage
Remedy
be
detected later
by means of
averred.
The most serious form of
X-ray film," Dr. Landerl said.
spoil¬
age
of dehydrated and concen¬
'The
combustion
study
o>f
Paints for
trated foods may be
Determining
Heat
prevented or
chamber deposit foi::
rmation is very
controlled through research
Volume
based
difficult since no direct method
on a new thePaints that tell the
temperais known for following the forma-
Chemical Society cite development of many new materials and
123rd
in
active.
Chemical Research
American Chemical Society at Los
involves
fuel
motor
Thursday, March 26, 1953
economi-
of process-
*ngy' dye.ing» and finishing chem-
which is destroyed by the
strong-acid method, he said.
#
older
Designed for direct injections
domes and for other critical uses.
Their
pooled
neers
development
efforts
of
came
through
research
representing
the
engiarmed
Volume 177
Number 5206..; The Commercial and Financial Chronicle
Frank H.
Kemp Witk
Write, Noble «Co.
DETROIT, Mich.
Kemp,
of the
dating back
Griswold
an
1919
to
on
Street, has returned
to
active trad¬
At the same time Mr. Loewi
Vice-President
the
portunity
Man¬
in
to
Ciudad
witness
a
op¬
bullfight
Acuna, in Old Mexico
Formality .will be cast aside by
day "Western" holiday.
The investment bankers will go
by bus from the historic old Fort
Clark Ranch to the border city on
the investment bankers and their
the afternoon of Thursday, May 7.
Dinner and colorful Mexican en¬
tertainment
will be afforded investment bank¬
Now Corporation
of
coln Bank Building.
Midwest
Mr.
Ex¬
Tiffany,
Lawton
change and
Officers
President,
revealed
are
Association
was
today by John P. Hen¬
derson, M. E. Allison & Co., Con¬
E.
and
Bankers
ment
vention
Bishop, Vice-President.
Chairman
of
the
San
of
Stock
E
change,
with
offices in
x-
De-
Frank
H.
Kemp
troit, Grand
Rapids, Ann Arbor, Battle Creek,
Lansing, Muskegon and Traverse
City, Mich.
Mr. Kemp is one of the original
group of 14 who met in Chicago
in 1934 to organize the National
Security Traders Association.
Through 1938 he served as na¬
tional committeeman representing
Investment for the future...
The expansion
program
position in the
more
Expenditures for
Detroit
he had
terms
and Michigan, which
helped form, serving two
first
its
as
amounted to
over
President.
Loewi Co. Announces
Official Appointments
in
William
K.
William
,
feter
oosae
C.
Elwell
Cooper'
ment securities, announce
the fol¬
'
lowing appointments:
.
Robert R. Veenendaal, Secretary.
Mr. Veenendaal joined Loewi &
Co. in 1945 after service with the
XJ^ Sf Navy as Lt. Comdr., after
having graduated from the Uni¬
versity of Wisconsin Law School.
William C. Elwell, Manager of
the Trading Department. Mr. El¬
well joined Loewi & Co. in 1947
after several years in both the
trading and sales departments of
another local investment house.
William
K.
Bosse,
Manager of
Corporate Research. Mr. Bosse
joined the Research Department
of
Loewi
&
in
Co.
1950,
after
experience in many
phases of research with a Chicago
many years'
investment firm.
»
Peter
Cooper, Assistant VicePresident. Mr. Cooper has been
with Loewi
the
&
Co.
since
1937 in
Trading Department. His new
activities
will
be
in
the Institu¬
tional and Industrial Loan Depart¬
ment.
.
In. announcing these promotions,
*J. Victor Loewi, President of the
company,
explained
that
*
the
now
be
: ■O"
plants and equipment during 1952
in 1953
on
amount of
approved
under construction.
our
felt this
1954. This
ress
Co., 225 East Mason Street, under¬
Veenendaal
new
expansion and development program
year
with greater
benefits apparent
aggressive program will strengthen
position and establish
Loewi &
writers and distributors of invest-
R. R.
of the company's business
$ll'/j million. An additional
over
Results from
will
—
areas
$12 million is being invested
projects
MILWAUKEE, Wis.
designed to advance Commercial Solvents'
profitable
is steadily moving ahead.
the Securities Traders Association
of
patio
of
La
in the years
a
ahead.
our
sound, broad base for prog¬
Hen¬
"Nothing is mandatory at this
convention," he said.
American
the
the
will spend at the arena, Mr.
derson explained.
Associate
members
in
wives during the three-day meet¬
ing.
Golf, swimming, tennis and
horseback riding will be enjoyed
on
the
Fort Clark
Ranch.
A
.
western barbecue
Friday eve¬
ning followed by dancing com¬
pletes the convention program.
With the serving of a ranch-style
breakfast Saturday morning the
unique convention will be brought
Macarena, one of the show places
during their May 6-9 gather¬ of Ciudad Acuna, will follow the
ing with headquarters on the fa¬ bullfight, after which the group
mous Fort Clark Ranch at Brackwill return by bus to Fort Clark.
ettville, Texas.
Those who prefer to shop or to
This "international" sidelight on
explore the quaint border city will
the somewhat unusual "conven¬
have ample time to do so during
tion" of the Texas group Invest¬ the
afternoon session which others
SYRACUSE, N. Y.—Donald L.
Tiffany, Incorporated is continu¬
ing the investment business for¬
merly conducted by Donald L.
Tiffany from offices in the Lin¬
with
Stock
Sales
ANTONIO, Texas—An
21
Antonio group, host for the three-
ers
White, Noble
&
Co., Buhl
Building,
members
To
SAN
ager, was elected to the Board of
Directors of Loewi & Co.
teletype
business
and
Group of IBA
Convene May 6-9
an¬
nounced that William L. Liebman,
ing desk and
private wire
and
Texas
management base.
H.
active
few
one
traders
Frank
—
gradual expansion of practically
all phases 6f their business has
necessitated the expansion of the
(1329)
a
on
close.
Opens Offices
BUFFALO, N. Y.—Tyler Kay is
engaging in a securities business
from offices in the Sidway Build¬
ing under the firm name of Mutual
Funds
Center.
22
(1330)
The Commercial and
their
Wants End of Tax Exemption on Municipal
Revenue Bonds Issued for Private Purposes
real
to
devel¬
estate
with equally bad results as
snown in the defaulting of $2 bil¬
lion of state and municipal bonds
in
1933.
I have
tlie
first
a
mortgage
development
revenue
This
dated March
pub¬
lic
accountant
of
N
e w
ark,
issued in the amount of $1,-
were
factually
Roberts
of
annual
N. J. and New
lature,
posed
k
City,
protests
.sue
of
is-
an
revenue
bonds
by the
of Flor¬
City
Ala.
ence,
dated
plan
a
industries
states.
for
...
economic
manufacturing
ernor
facil¬
a
W.
narry
The
pri¬
text
to
Mr.
Wolkstein's
Securities
and
ment
held
the
past
few
I
years
and
industrial
foundations.
I
:
National
Tax
for
a
which
years
of
their
in
our
bonds
revenue
Gov¬
similar
Massachu¬
statutes
order
to
in
re¬
policy of subsidizing
private industry and to entice
the
these
new
to
into
by
the
city.
prospectus
also
states
proved
thereof that ".
interest
and
and
such
to
and
our
the
nomic
bonds
of
the
the
SEC
in
investing
country.
event
of
a
derived
depression, we
a widespread default in
see
newly-issued industrial de¬
velopment bonds, with resulting
impairment of the financial ca¬
munic¬
ipal governments. Following the
Civil War, the states and munici¬
within®
Statutes
municipal¬
of the
Constitution
charge against its
or a
It
is
judgment
my
Florence
bonds
that
.
.
that these bonds
than
with
They
veneer.
nicipal
on
In
municipalities
the
loaned
the
convertibility
The prospectus,
informs the prospective
investor that the Styion Corpora¬
tion will exchange for each such
bond
stated
a
number
of
your
have
graph
a
metal
stencil
Department
for
in
our
investment
every
banking and brokerage firm in
the
arranged
States
alphabetically
Cities, and within
by
the Cities
by firm
most
Our
up-to-the-minute
you
available.
complete list
(United States
or
Canada)
The
i
further
prospectus
on
1 thereof
page
repre¬
that "in¬
exempt, in the opinion of
Counsel, from all present Federal
income
taxes."
It
is
opinion
my
a
opin¬
my
for
your
copy
of
Internal
Rev¬
requesting that he change
ruling holding such interest
brief
that
of
labels at
a
small additional
these
the
that
these
with
a
Securities
inform
are
them
Place
bonds
veneer.
Dealers of North
in
encouraged
prove
to be
a
the
fu¬
real threat
democratic way of life and
our
system
These
of
private
bonds
are
enter¬
only
the
step to "state capitalism."
view
are
of
the
serious
involved,
I
respectfully
grant
you
me
a
per¬
in
these
Florence,
bonds.
response,
receiving
to
your
our
Newark, N. J.-office.Very truly yours,
America"
HARRY W. WOLKSTEIN
REctor 2-9570
New York
7
are as
„
579
H. S.
1,587
3- 4
9-10
33
26
31
552
1.583
7-
8
26
31
574
1,480
1-
1,450
26
31
562
32
526
1,410
Peters, Writer & Christensen_PWC
9-10
19
38
574
1,371
17
40
490
1,373
,_SSR
Garrett, Bromfield & Co
Kennedy
Hasselgren
Mayer
i
Bachar
_
5-6
G. B.
T. P.
BS
CG
HO
54
53
9,348
9,165
173- 6
172-49
54
9,284
HO
57
9,623
171-50
168-47
Team
Avg.
H. G.
H. S.
245
603
245
585
222
583
228
597
Bvan
PW
15
2,500
166-10
197
520
Forsyth
MF
36
5,928
164-24
226
543
_SU
45
7,322
162-32
234
537
Robinson
SSR
18
2,929
162-13
198
538
Ormsbee
PW
51
161-30
231
536
JKM
51
8,241
8,136
159-27
233
550
CKJ
52
8,283
159-15
203
561
551
Alif
____
Lascor
Dispense
1
Carroll
Richardson
u
Ayres
Siple
-
<
—
-
Hammer
Hershner
Struthers
«.
Haggerty
-
Hunt
Ryder
——1
—
Inman
Layton
Talmadge,
:
—
CKJ
48
7,626
158-42
226
—MF
51
8,080
158-22
218
605
HU
42
6,574
156-22
220
583
HU
57
213
564
54
8,882
8,342
155-47
CG
154-26
242
554
HU
51
7,877
154-23
190
495
CKJ
48
7,397
154- 5
200
541
CG
54
153-29
217
553
SSR
12
8,291
1,842
153- 6
212
566
BS
58
8,247
147-15
191
518
MF
36
5,220
145
197
491
BS
42
6,013
143- 7
186
515
HO
57
8,127
142-33
198
527
SSR
16
2,231
139- 7
182
504
J—- JKM
51
6,964
136-28
181
471
SU
36
4,892
135-32
178
465
-JKM
51
6,900
135-15
167
440
—PW
21
2,405
114-11
175
411
530
—
R.
Clark
Talmadge, M.
_
Thompson
Stone
SU
Mitton
Hill
ALT
26
4,126
158-18
209
24
3,468
144-12
192
459
ALT
6
863
143- 5
189
434
__ALT
21
2,999
142-17
172
485
__ALT
9
1,242
138
168
429
__
Roberts—
Peters
Lana
(New Jersey and New York)
J—ALT
9
1,200
133- 3
167
447
ALT
18
2,271
126- 3
175
433
—
Last Night of
158
_____ALT
___
Patterson
Certified Public Accountant
March 15, 1953
17
40
H. G.
25
SU
Co.__
Neely
addressed
Lost
2
C. Sudler &
personally discuss the de¬
involved
Won
24
issues
conference at your office at
earliest convenience, so that
may
Ala.
Herbert D. Seibert & Co., Inc
Park
properly
commercial
I shall appreciate
25
Ex-
investing public, and
fictional municipal
our
tails
charge.
o] "Security
and
a
early
Publishers
Florence,
under the juris¬
come
the
request that
gummed roll
of March 6, 1953
3- 4
Amos
Currie
we
on
to
as
___MF
3-13
J. K. Mullen Investment Co._JKM
protect
sonal
also supply the list
my
the
Carroll, Kirchner & Jaquith_CKJ
Harris, Upham & Co.__
HU
Mutual Funds
Davis
your
can
in
Team
chance Commission and should be
controlled by the SEC in order to
that
$5.00 per thousand.
We
Many of
submitted
as
bonds
In
is
as
1,589
next
charge for addressing envelopes for the
Keglers scorings
1,483
1,597
prise.
service
Denver Bond Club
563
pal bond field,
to
the
DENVER BOND CLUB
589
to
This list is revised
daily and offers
the
at
523
bonds, if
ture, will
names.
1954
21
knowledge
my
public-spirited citizen, I
sincerely believe that this type of
industrial
development
revenue
and
22-26,
23
As
country,
Sept.
36
diction
Addresso-
be
34
in order to
We
Idaho, the 1954 Convention will
Claridge Hotel, Atlantic .City, N. J.
that
announces
16-19 at Sun Valley,
1-2
Ala.
Addressoyraph Service
Association
5- 6
to
taxability of
these bonds, apply
equally to the
company.
Traders
BS
is
contention
on
Security
CG
enclosed
information
National
Bosworth, Sullivan & Co
bonds,
arguments
for
The
Colorado Grain Co
cial
commer-*
the first of its kind in the munici¬
to be taxable income.
them
,
while the 1953 Convention will be held Sept.
7- 8
his
to
»
SECURITY TRADERS ASSOCIATION
J. A. Hogle & Co.——— HO
is often found in
enue,
look
Richy Goodman
NATIONAL
which
Commissioner
Investors
Point Club
,
Styion
of a brief
that I have this day mailed to the
Country.
13
5
follows:
consideration
the
13i/2
Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff__
Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack,
Corporation common stock. This
type
of
conversion
privilege
tax, and in support of
ion, I enclose herewith
Mail your Annual Report to the
Investment
19
17 V2
mu¬
therein.
page 4
(Capt.), Frankel, Strauss, Nieman, Bass, Krassowich__
(Capt.), Klein, Weissman, Murphy, SearightSerlen (Capt.), Gersten, Krumholz, Rogers, Gold
17
a
bonds;
in
contention, I call to
attention
your
23
22
21
20
20
Hunter
municipal
not at all
are
my
(Capt.), G. Montanye, Voccoli, Siegel, Reid
(Capt.), Smith, Valentine, Meyer, Farrell, Brown
Donadio (Capt), Demaye, Whiting, O'Connor, Rappa, Seijas
Growney (Capt.), Craig, Fredericks, Bies, McGovern
Leone (Capt.), Greenberg,
Tisch, Werkmeister, Leinhard,
governmental
support of
27
26V2
are
fictional
a
Points
(Capt.), Ghegan, Jacobs, Gannon, Cohen
Bean
."
nothing more
commercial bonds
ordinary
coated
Bowl¬
these
issued for
were
.
Goodman
gen¬
or taxing powers.
(Italics supplied.)
interest income on these
bonds should be subject to income
of
Burian
or
pecuniary liability of the munici¬
pality
,
(STANY)
Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker
do they give rise to a-
nor
*
.
of New York
Team—
Krisam
provision
any
State
*
ing League standing as of March 19, 1953 is as follows:
is¬
are
that the
Houses
*
Security Traders Association
the
of
eral credit
terest is
defaulted.
were
the
2-4200, extension 354).
These bonds and
indebtedness of the
an
Alabama
by Mrs. Painter of the Red Cross, who will have an office in
634 at the Stock Exchange, beginning March 16 (HAnover
be
revenues
leasing
of the four days): March 30, 10:15 a.m.—3:45 p.m.;
a.m.—4:15 p.m.; April 1, 10:45 a.m.—4:15 p.m.;
10:45
Room
interest coupons do not constitute
fit nominal rental terms
and other
1920s
the
premises which the bonds
sents
bonds
shall
31,
April 2, 10:15 a.m.—3:45 p.m.
Blood donor appointments.will be scheduled for each Chair¬
man
2
page
principal and
bonds
sued to finance.
bonuses, palities issued
bonds for the pur¬
interest-free loans, donations of
pose of subsidizing railroads, with
land and building,
leasing plants tragic results when these railroad
.subsidies.
from
feature
major eco¬
shall prob¬
these
new
other
to
as
industrial
revenue
protect
public of
new
cash
as
thor¬
question
jurisdiction
the
.
•
The
.
on
payable solely out of the
in¬
should be subjected to the control
order
.
said
on
.
on
1:45 p.m. on any
prepared
and ap¬
Corporation
Styion
by
up
Marcn
come
examine
the
development
ex¬
the 10th floor of the Stock Exchange Bunding at 20
Broad Street, from Monday March 30 through Thursday, April 2.
Hours will be as follows (with no appointments from 12:30 to
equipment in accordance with the
plans and specifications
YORK
New
of
A Red Cross mobile unit will be
Street Associations Blood Bank.
for the construction
and
NEW
OF
York has sent a
to members regarding contributions to the Wall
Association
Traders
Security
special message
set
"proprietary purpose" and not for
Exchange a "public purpose." And further
industry away from other states
pacity and credit of these
by means of providing tax ex¬
concessions
the
considered
my
Securities
oughly
ably
expand
for
financing the
plants and equip¬
is
It
develop¬
of
purpose
In
country
their
emptions,
privileges
in¬
our
a
whether many of these
My research has indicated that
revised
on
industrial
Commission
Association,
number of states in
cent
state
an
against
judgment that the time has
in
have
attack
ment for rental to
devel¬
enclose
Dallas, Texas in Noveml)er, 1951, "Recent Problems and
Developments in Property Tax
Exemptions."
a
the
construction of
conference
the
shot in
proposed
issued
press
eopy of a technical paper,
I presented before the
of
for
done considerable research
dustries.
the subject of
property tax ex¬
emptions,
southern
by certain states."
Dever
have
Ex¬
have
opment
Rhode
on
As the first
being made
of
,part
as
lands
buildings and the purchasing of
ity
change Commission follows:
During
a
Over the past few years a num¬
ber
of
municipal
governments
Dear Sirs:
on
up
of
of
setts.
of
the
his
pro¬
get
by
counter
raids
plan
Wolkste./i
corporation.
letter
1952,
plants,
stop raids
to
Island
dustries
ities for
1,
"state
industrial
new
the
vate
Jan.
their
that
p r o v i d i n g
and
in
message to his state legis¬
the purpose of
site
Island,
$6 million revolving fund to build
$1,300,-
'*00 of
Governor
that
Rhode
The
ASSOCIATION
TRADERS
SECURITY
policy
indicate
Y
o r
expanded
Notes
NSTA
study of
industrial
bonds that
recently made
5%
300,000, by the city of Florence,
Ala. on Sept. 1, 1952.
of state
The
prospectus
on
this
new
?f), addressed to the Securities and and local governments of subsi¬
bond issue, a copy of which pros¬
Exchange Commission and the dizing
private
industries
has
pectus is enclosed herewith, states
Commissioner of
Internal
Rev¬ reached the stage of a continu¬
that the proceeds of this bond is¬
enue,
ous
economic
war
Harry
t
among
the
sue
will be used by the city of
W. Wolkstein,
states and municipalities. My files
Florence, Ala. "for the purchase
certified
In separate letters,
March 26, 1953
Chronicle... Thursday,
opers
Harry W. Wolkstein, certified public accountant, writes SEC
and Internal Revenue Bureau protesting a recent issue of
revenue bonds of City of Florence, Ala. Warns it is subsidizing
private industry and leading to economic warfare among states.
;
credit
Financial
1952-53
season
will be Friday, May 8, 1953.
There will be three complete rounds or a total of 81 games in
the
season.
Volume 177
Number 5206
Robf. Coleman
.,;
The Commercial and Financial Chronicle
about
aries
Pub. Relations Office
Robert
.
account
S.
Coleman,
executive
in
principally
California,
Opens
Los
are
Angeles.
(1331)
in
and den. Stone & Co, March 31. Prior
subsidi-" to his association with Hayden,
Its
Co., Southern' Counties- Gas Co.
of California and Pacific Lighting
Stone
department of Doremus
& Company, has announced the
his
own
lic
advertis¬
Julius
ing consultant
b
si
u
1
in
ness
with
John
New
52
New
Broadway,
York
Hallgarten
become
&
Co.,
on
Mr.
F.
E.
partnership in Schafer, Long
Meaney March 31.
Weekly Firm Changes
The New York Stock
!
Exchange
McCoy Director
has announced the
following firm
William D. McCoy, partner in
the investment firm of McCoy &
Exchange mem¬
bership of the late Robert F. De- Willard, Boston, and who is also
Chairman of the Board of Air
Coppet to Harvey Drachman will
be considered by the Exchange on America, was elected a Director
associated
120
with
Broadway,
Transfer of the
.Albert Frank Agency
William
F. Dietz, Manager
Production
Department
April; the,
of
of
Albert Frank-Guenther Law, Inc.,
131 Cedar Street, New York City,
York
York
retiring from partnership in Hay-
City.
man,
with
was
April 2.
Exchange mem¬ nual stockholders' meeting of that
bership of Wesley M. Oler to company. Besides its main plant
Chester
C.
Burley, Jr. will be
at Milford, Massachusetts, Sty Ion
considered on April 2.
Corporation is erecting a new
A. Brock Park will withdraw
Oscar
the agency since 1919.
Sty Ion Corporation at the an¬
of
Transfer of the
City, members of the has been elected a Vice-President,
Stock
announced
Exchange, to itwas
today
by
form and direct a new foreign Howard
W.
Calkins, Chairman. from limited partnership in Hay¬
department.
Mr.
Hallgarten
is Mr. Dietz has been associated with den, Stone & Co. on March 31.
P.¬
Br ode rick at
New
will
A.
Reynolds
sociation
a s
he
W.F. Dieli V.P. of
Hallgarten With
Reynolds & Company
pub¬
&
changes:
J. A.
of
relations
and'
Co.
public
relations
formation
&
Hutton & Cohipany and H. Hentz
& Co. >
formerly Gas
Supply Co.
the1
from
New York Stock Exch.
.
Southern California, (Gas
S.
will
Schafer
plant at Florence, Alabama, which
will
be
completed by July 1
this year.
retire
Cole¬
grad-
a
iiate
of
the
University
of
Virginia,
served
as
a
Lt.
(jg) in the Navy during World
War
II, and afterward became
in
associated
with
Chicago
Fitzgerald
Dancer,
and
?
ST. REGIS REPORTS FOR 1952
the
Sample
advertising
agency. He joined the
staff of the Bridgeport
editorial
(Conn.)
"Post"
later
years
was
the
of
man
in
(Conn.)
1948
and
THE YEAR 1952
Committee
State
Government.
with
Doremus
For this
program.
the virtual
program
At the end of the year,
on
Following a
series of free lance assignments
for the "American Weekly - Maga¬
zine, Coleman became associated
&
saw
two
appointed Chair¬
Fairfield
County
Citizens
in
completion of
an
8-year expansion and improvement
St. Regis Paper Company expended $134,333,316.
the following major projects
substantially completed and
were
operation:
Completion of the new
Jacksonville, Florida,
in
Company
kraft
1951.
pulp,
paper
and
board mill.
Harper Joy Heads
Expansion of the Pensacola,
Florida, kraft pulp,
NASD Committee
Carl
Stolle, G. A. Saxton &
Co., Inc., New York City, Chair¬
of
man
the
Board
-ri
f Enlargement of the
Pensacola, Florida,
multiwall bag
of the National Association of Se¬
curities
plant.
Deal¬
Inc.,
ers,
paper
and hoard mill.
Governors
of
an¬
;
the
nounces
appointment
of Harper
*
Joy,
Completion of Tacoma,
Washington, pulp mill
expansion.
Executive
Vice-P resi¬
Completion of .the
dent
multiwall bag plant at
i f i
c
of
Pa-
North-
c
new
Tacoma, Washington.
Com¬
west
Spok¬
pany,
ane, as Chair-
NASD
■■■Ml
the
of
m a n
■■■■■■■■■■■■■■■■■■!
■ ■
Completion of the
I"
new
multiwall bag plant at
■■■■■■■•■■■■■Mi
Public
Dry den, Ontario.
Member
and
Relations
C
o m
rait tee.
Named
the
Harper Joy
of
committee
Bickel,
?
as
members
were:
Clarence A.
Vice-President
of
ST. REGIS PAPER COMPANY
paid dividends of $1.00
per
share of
common
stock in 1952,
as
compared with 80 f in 1931 and W in 1950. Copy of complete Annual Report available on request.
Robert
W. Baird &
E.
ard
Co., Milwaukee; How¬
Buhse, partner in Horn-
blower
ent
Weeks, Chicago: Clem¬
A' LVans, President of Clem¬
For the years
Bosworth,
Denver.
Co., Inc., Atlanta;
Sullivan, President of
Sullivan & Co., Inc.,
I
,
Sales
Blyfh Group Offers
Pacific Llg. Pfd.Sfk.
A
syndicate headed by Blyth &
Inc. including 34 other inhouses
vestment
throughout the
country, made public offering on*
March
Pacific
dend
24
of
200,000
shares
..
Lighting Corp. $4 75 divi¬
cumulative
April 1, 1953.
Proceeds
000
1952
1951
$182,712,239
$195,955,617
158,165,799
159,845,270
24,546,440
36,110,347
of
3%
the sa'e will
bank
the
loans
construction
subsidiaries.
proceeds will
Operating Income
Gross Income
Income
•
Provision for Federal and
Foreign Taxes
Net Income
39,867,506
2,867,531
1,126,663
24,240,375
38,740,843
11,538,398
21,944,809
12,701,977
16,796,034
Dividends Paid
$
Preferred Stock
The
now
out¬
were
used
of
program
balance
of
Net Income Per Share of Common Stock
be
ST,
the
used
Lighting Corp.
corporated in 1907
as successor
Products include
paper
is
a
holding
of public utilities
natural
gas
in
$
708,193
4,136,531
2.32
3.11
PAPER
Canada: St. Regis Paper
COMPANY
New York 17, N. Y.
Company (Canada) Limited, Montreal
to
porated
It
693,308
5,170,714
in¬
was
Pacific Lighting Company (incor¬
1886).
REGIS
230 Park Avenue
In
plying
3,757,159
27,107:906
Charges
subsidiaries.
company
••
Profit Before Taxes
to finance
futher construction of its principal
Pacific
2,561,466
Income Credits
be
in full the $1,000,-
standing, which funds
for
.7.'
Common Stock
from
to repay
Expenses
of
preferred stock,
(without par value) at $100 a
share plus accrued dividends from
used
*
..
Cost of Sales and
Co.,
ended
December 31, 1952 and 1951
SUMMARY OF CONSOLIDATED INCOME
ent A. Evans &
and John J.
sup¬
Southern
23
a
wide
range
of printing, publication and converting papers—bleached and
and board—bleached sulphate
unbleached kraft
pulp—multiwall bags and packers—industrial and decorative laminated plastics
of
24
(1332)
The Commercial and Financial
cultural
Financing Shopping Centers
values
decisively
Slum
Architect, New York City
Creation
rapid growth of suburban shopping centers
and methods of
financing them, Mr. Gruen offers as three
principal criteria for judging shopping centers: (1) business
success;
on
Creation
Enrichment
tural
(2) convenience, and (3) safety. Lays down stand¬
complete shopping center which will determine its
soundness, and concludes the cheapest, from view¬
has
been
announced
lated
under the
title, "Financing Shop¬
Centers." This is a subject
ping
for
Then
it
m
c.
,,
{
in
hours.
Another
is
in
speaking
about
shop¬
have
things
In
to
mean
strip
a
supermarket
as
Victor
Gruen
1
of stores with a
the principal ten¬
comprising possibly 50,000
feet of rental space alto¬
gether; in others it is understood
mean
regional shopping de¬
a million or more
a
velopment with
feet
square
rental
of
capital
a
and
space
expenditure
of
over
twenty million dollars. These dif¬
ferent
will
types of
obviously
shopping centers
require different
nancing will apply primarily to
the regional center, whereas the
small
neighborhood center will
require financing limited to
by the fact that there
types
of
almost
center.
type
One
is
differ¬
are
financing
any
involved
of
shopping
equity fi¬
the
nancing, which involves not only
the
money
itself, but also the
managerial and promotional in¬
stinct
that
is
to
necessary
bring
shopping center into being. The
a
second
is
permanent
mortgage
financing, which is likely to be of
conservative
a
third
is
nature,
temporary
and
the
financing
presume
that
I
you
that
you,
as
also, however,
interested in having
informed background concern¬
ing all types of shopping centers
an
and all aspects of
shopping center
financing.
Technical Factors
The
in
"technical" I
mean
to
appraisal, and the form
ture,
or
which
cured
by
a
the
deben¬
loan
assignment
an
from
of the
se¬
of
the
permanent
fi¬
discuss
you
than
with
you,
know much
I
do.
What
of
knowing
more
I
this
ological background
design and building
p
that
you
of
been
I
did,
the
he
tanned,
corre-
the
American Bankers
Association, New York
City, March 4, 1953.
cision,
all
but
of
of
it
own.
the
place
take
wasn't
the
only
an
The
place
be
ap¬
Announcement of the de¬
which came near the end
opportunity to digest the
news
consider its full implications.
For the balance of the week
most
rail
rate.
increase
wage
more
than
share
on
different
savings will
the higher wages.
instance,
close
accrued
the
to
After
52%
taxes
should
around
the
cost
no
$0.55-$0.60
annual basis.
an
the
tax
a
This is
not
bad in relation to last
year's
$13.29 share earnings. Central, on
the other hand, will be
relatively
hard hit because it paid no Fed¬
tax on its income last
year.
eral
The
increase
$1.50
and
in
may run to $1.40share which would be high
a
relation
$3.83
a
to
1952
earnings
of
share.
stocks just continued to drift
aimlessly.
Southern
lative
who
one
not
for
year
statutory
on
trading day, brought about
late
selling
of
railroad
equities. The liquidation did not,
however, carry over to the next
morning when investors had had
friends—
my
binding
can
Fe,
last
for
will influence
which
offset to
an
taxes
of the
had
its
and
that
to
Santa
some
very
because of space limitations. Then
he started to
"pack them in." The
by
Some stocks, including
Railway and the specu¬
Baltimore
mon
did push
high territory.
The
C. M. Weber Receives
com¬
into
Free
new
brotherhoods
total
a
Ohio
forward
railroad
demanded
cents
and
increase
Enterprise Award
had
of
18
hour in wages based on
claim of increased
produc¬
an
their
relationships.
face,
and
in
journal
Main
and
Our
Growing on Our
Broadways?"
Cities
Doomed
to
trophe, the
two
about
the
excitement
new
of
type
large shopping center projects,
calling it "The Shopping Center
boards.
is
have
If
to
fever. Hun¬
a
shopping centers
and
there
usually
is
search
are
in
the
on
drafting
fever, there
a
disease, and
a
don't
we
it
for
very long.
The seat of the disease is obvious.
Our cities are sick.
Let
us
try to diagnose the sick¬
Its
main
manifestations
trouble
and
are
hardening
of
the arteries. The heart which
is in
trouble
It
is
the
doesn't
and
of
core
function
cities.
our
properly, and
of
When
able
to
inherent
and
in
service
the
operation
good establishment.
gather
may
the
the hearts of
hardened
hardened
highways leading to
cities. They are
our
because
with
are
ready
are
they
the
are
traffic
added
con¬
from
and with
automobiles
new
daily to the al-
tremendous
automobile
army.
that
in
the
demands
of
a
to
be
and
satisfied
other
therefore,
should
ban
by
is
Our
not
whether
we
should not have subur¬
or
shopping
facilities.
choice is whether
poor,
shopping
choice,
new
facilities.
Our
should have
we
anarchistically-growing,
un¬
planned suburban shopping facili¬
ties, which are nothing else but
continuation
a
which
they
of
are
the
evil
running
It
is
not
more
is
centers.
of
building
facilities; it
building better
of
not
question
a
or
well-
shopping
but of
I
have
question
a
question
It
should
from
away,
of
is
a
momentum
from
for
the
should have been
of
that
us
undergo
a
the
quantity,
quality.
have
brought with me a little
building-block game, with which
I hope to make
visually clear a
few
of the fundamental
rules.
This
last
20
cities will
our
therapeutical
they want to
years,
go on
have to
treatment
living.
Maybe the dramatic
appearance
the
board
settle
The
strip
of
a
psy¬
hearts
tural
groups,
gentlemen
the
—
financial
merchants,
the
save
like
cul¬
and
—
you, who represent
strength
of
our
society. If and when these
forces,
realizing the threatened"* ltJss' of
n
!J-V
.-arte■
the
area,
need
for
in
has
stemmed
investment
rather
from
than
capital
through
the efforts of the workers.
Regardless of the merits of the
case, it had
for
granted
generally been taken
in financial circles
that in view of the
history of la¬
bor controversies for
past
some
would
productivity
be granted.
increase
This
was
par¬
ticularly true with the referee—
first
block
merchants
of
grows.
other
in
rule
bolizes
rent
stores
Store
than
This
after
the
"first
little
the
space;
accordance
store
with
sym¬
She
car.
would like to park as close
sible to the front entrance
is
no
first
come,
block
shopper's
as
to
pos¬
the
market, but only rarely does she
find space. If there is
some
ing
behind
space
provided
roactive
feature
when
was
to
,-TW
■
<■*
.*■
on
TV".'
park¬
the
page 30
v
of
the
than
some
had
many quarters.
were
been
feared
in
The brotherhoods
granted
ductivity raise of 4
cents
an
hour,
Dec.
1,
1952,
retroactive
only
which the referee had
been
on
presented to him by the Free En¬
terprise Award Association, Inc.
The winners
appointed.
In
the aggregate, it has been
estimated that the 4 cents an hour
will cost the railroads about
and
on
an
a
annual
basis
percentage
trade
—
were
poll
press
of
selected from
674
business
editors.
The
F.E.A.A. Incorporated is chartered
under
New
are
York
State
laws.
Its
to promote incentive and
champion
the
cause
of
Free
En¬
terprise.
James F. Millions V.-P.
Qf First Nat'l Bank
$120
million
represents
editorial
an
pro¬
the date
to
New York City, holds the
Free Enterprise Award Certificate
way,
aims
increased
an
Collie M. Weber, President of
Weber-Millican
Co.,
50
Broad¬
award,
announced, proved
considerably less burden¬
be
it
ATLANTA,
increase
Ga.
—
Effective
slightly more than 2% on ex¬ April 1, James F. Milhous will
become associated with the First
isting average hourly wage rates.
The $120 million annual
figure is
before
taxes
Federal
income
considerably less. It is also pointed
out
in
financial
on
circles
earnings
moderated by
a
1
that
may
cent
National Bank of Atlanta
President
in
the
so
that the actual net cost should be
as
Vice-
investment
de¬
partment. Mr. Milhous is President
of
Milhous, Martin & Co.
the
well be
reduction
Hyland Assoc. Formed
PELHAM, N. Y.—Robert J. Hy¬
April 1,
1953 on the basis of the cost-of- land, Jr. has formed Robert J.
living index. Be that as it may, Hyland, Jr. & Associates with of¬
in
hourly
the
rates
wage
on
granting
of the productivity
increase can hardly have
serious impact on 1953 earn¬
any
ings.
Granting that nothing that
increases
costs
constructive,
ment of the
can
and
be
considered
that
precedent is not fun¬
new
de¬
velopment does not alter in any
important measure the outlook for
maintenance
the
of
high
current year
upward
ments
trend
to
and
in
earnings
a
fices at 48 Fifth Avenue to
engage
in the securities business.
Specialists in
establish¬
damentally healthy, this
in
Guaranteed
Railroad
Securities
continued
dividend
pay¬
railroad
stockholders.
The impact of the wage increase
on
earnings will vary consider¬
ably for different roads. For one
thing, basic labor costs are higher
for
Continued
it
wage
right against the high¬
way. It probably contains a super¬
market, maybe a drugstore. As the
residential
neighborhood
grows,
will
effect
the
snuggles
other
the
in
shopping facilities arises.
planned shopping center,
springing into being all at once,
have
productivity
there
has
the
industry in recent
been
years
shopping influence
green
over¬
warning to all
creased
of
ones.
symbolizes virginal suburban land.
This gray ribbon
crowded downtown
represents the
areas, which
has gone on with
new suburban
highway. As people
ever-growing
flight
and
vastly increased population living a holdover from the
previous Ad¬
over a
vastly increased area have ministration. The extent and ret¬
center
The
a
little personal experience, the
moral
integrated
are
of
moral
planned,
healthy fashion. The
which
is
was
many years
You
we
normal
which
It
management,
with complete justification in
the
minds of most financial students
of
the
industry, that what in¬
and is
up
give the amount of
convenience
in
the roads and
he
them, they did well, and
whether
arteries
similar
a
atmosphere.
live blood doesn't flow
through it
a
catas¬
a
decided to build
owner
original fashion, picked
my
Indeed, it is like
of
became
the business in the
original place,
which
was
reestablished
in
its
Fever."
dreds
it
restaurants
new
now
And most of all these headlines
construction
before
opened
Become Ghost Cities?"
speak
Just
by
,
over
Streets
"Are
contended
rapidly.
of our
cities, forces
city governments, 'civic and
*An address by Mr. Gruen at Annual
Savings and Mortgage Conference of
a
parties
different
are
extent
the demands
on
The decision is
pealed.
areas
boomed, and
happy owner enlarged until
couldn't enlarge any further
this
_
food,
charm
and
too.
served."
new
the
there
go
and
set into motion forces to
to
both
and flowers arranged in the
spaces
between the wide aisles. I liked to
re¬
however,
labor.
the beautiful
greenery, plants
was
the soci¬
category, the
of
rented,
like
know
be
decision
the railroad brotherhoods for
increase in wages based on the
claimed increased
productivity of
cities. It not only pro¬
atmosphere
chological shock treatment, arouse
people from their lethargy, and
about them
would
try to do is to give
one-ownership,
an
trade
"Will Grass Be
of
title
to
awaited
of
personal experi¬
a
delicious
Part
time.
ing to Die?"
be
talk, I feel ill-equipped indeed to
of
roads and
an
recrea¬
downtown
our
used
our
vided
has
"Are Our Downtown Areas Go¬
associated
the
long
has
of
one
e
the country we
find these questions posed:
if
with
and
headlines all
nancing. All these technical fac¬
tors, which would
ordinarily
cities
our
felt that way. Thousands of others
areas
a
cities
our
newspaper
By
whether it
a
mortgage, or
simply a note
proceeds
are
you.
of
pleasant and elegant restaurant in
the
which
involved
such questions
—
for
on
the thousands of
factors
financing document
would be
about
Suburban
raipdly growing suburbs
Types
types of financing
available
readily
as
in
Financing
technial
various
of
highlighted,
gested
Of
our
rates
Rail Earnings
on
Guthrie, a Truman
appointed referee, came through
last
week
with
his
anxiously
appearance
of the planned beautiful
greenery
and
plants tivity. It was requested that part
shopping center. Because the went
out.
The
tables
became of this increase be made retroac¬
planned shopping center springs smaller, the aisles narrower.
tive for as much as three
You
years.
into life full-grown, it is the most waited in
line to be seated. Pretty Railroad
management,
on
the
dramatic
manifestation
of
the soon the
other
hand, made a strong case
atmosphere was gone,
commercial flight to the suburbs. the service
went
to pieces,
the against the theory of productivity
It illuminates with the cold
sharp¬ food was cold when it arrived at increases, a new departure in rail¬
ness of a searchlight the
problems the table, and business went down road labor
heart
repre¬
believe
are
talk
suburban
our
phenomenon
ness.
senting banks, are interested pri¬
marily
in
temporary financing
and in the
financing of smaller
centers.
in
cultural, social,
me
I
ence.
growth of shopping facili¬
This
in
the form of construction loans.
I
Growth
going
per¬
haps ten or fifteen years with a
higher rate of payoff. The sub¬
ject is made even more complex
ent
will
been
types of financing. Long-term fi¬
in
of
in
cently
square
to
life
Professor
civic administration
our
our
reminds
sub¬
correctly
The
ties
many
un¬
financing
I
health
The fate of
Shopping Centers
to
it is
ant,
you.
to
Causes
peo¬
derstood
cases
mitted
term
different
ple.
center
differ¬
means
ent
any
entitled,
"T h
Planning of Shopping Centers."
found
the
civic
Impact of Recent Wage Increase
cul¬
tional, business and financial life.
in judging the merits
particular application for
more
ping centers, I
that
and of
you
shopping
the
centers of
large and small projects, for
I feel that small shopping centers
require good
planning just as
much as the larger ones.
My talk should, therefore, be
of
that
social,
restored, and they will
again the role they were
destined to play—to be truly the
both
difficul¬
y
ties
and
the
play
shopping center, and to tell
assisting
of
ade-
t e1y
q u a
many
of
be
may
something about the basic
planning concepts, in the hope of
to
anyone
cover
within
areas
cities.
you
broad that it would be difficult
so
green
cores.
of
parking areas.
Improvement of Traffic Arteries
point of capital outlay, is rarely the best.
talk
as:
a
economic
My
of
city
our
ards for
such problems
on
Clearance.
Rehabilitation.
Member, American Institute of Architects
Commenting
and, with them,
values, will act together
economic
By VICTOR GRUEN*
hcraMc26,
inorhC
1953
some
roads
than
for
Also, Federal income tax
others.
accrual
fijMAggj USaftl STOCKS'KOHPS
2S Broad Street
New York 4,
N. T.
TtltfNw BOwttaf Green 9-6440
Members Nat'l Assn. Securities
Dealers, Inc.
Volume 177
Number 5206...The Commercial and Financial Chronicle
(1333)
ADVERTISEMENT
r
(
ADVERTISEMENT
231
•
ADVERTISEMENT
SOUTHERN RAILWAY COMPANY
Fifty-Ninth Annual Report for the Year Ended December 31, 1952
Richmond, Va., March 25, 1953.
Dividends
relinquished
'
Dividends
To the Stockholders of
of
5%
tinued, and there
SOUTHERN
The
Board
RAILWAY
of
COMPANY:
of
Directors
submits the
following report
quarterly
Company for the year ended Decem¬
ber 31ft 1952, which is the annual report it is contem¬
plated "formally to present to the stockholders of the
Company at the annual meeting due to be held
19, 1953.
on
^Company's
efficient
"•
during
improvements to
of
program
well
as
economical
as
1952 in the
effect more
was
the keynotes of the year's corporate
retirements, is
._
Roadway machines
Shop machinery
Operating Statistics
All
Operation of the railroad in
Total
the
over
of
gross
1951,
due primarily to in¬
was
Diesel
compared with those in effect
as
in the prior year.
Passenger
Work
The
volume
of
ceipts therfrom,
Freight
mqved
Average
Ton
business
handled
~
Number
(miles)—
moved
I
Average
Total
passengers.
journey
Passenger
;
Equipment
64,973,796
209.55
214.66
13,515,833,244
13,947,550,525
1.707c
$221,124,004
2,707,423
3,143,063
257.53
<234.72
697,247,918
737,728,454
2.8810
$20,089,398
2.6720
$19,711,642
J
—:•
revenue
per passenger
revenue.
1.585c
'$230,743,186
.
mile
___>
The
Operating Expenses decreased by $3,861,924,
in
and. the
decrease
as
Southern's
'■at
expense resulted in the Cost of Transportion
(which is the ratio of Transportation Expense to Oper¬
ating Revenues) being 32.640,• the lowest in the Com¬
New
operating
pany's
post-war
history,
in
and
the
Operating
1948 have
certain of the more important
yards, together with car
capacity before and after the expenditure, are as follows:
in
revenue
'
■'
Car
■
Inman
Yard
Expenditures
Expenditure
Expenditure
1,769
3,115
,
Orleans
eastern's
and
'
Yard
The Alabama
4,000,000
2,898
963
.
1,310
at
Ernest
Norris
Birmingham
10,455,800
facilities for
yards,
'.
■«
over
the comparable
figure for 1951. These tax
equivalent to $1,392 per employee and to
share on the Common Stock.
$33
per
t,
In
addition
larger
to
"•
enlarging
yard
Railway Operating Income, being the remainder
Operating Revenues after deducting all Operating
Expenses, Taxes, and Equipment and Joint Facility
Rents, amounted for 1952 to $36,376,960, as compared
with $27,947, 212 for 1951, an increase of 30.16%.
The
Operating Expenses, Taxes, and Equipment and
Facility Rents, expressed in the number of cents
Joint
out of
Norris
installed.
were
and
John
The
Sevier,
are
of
Maintenance
of
Traffic
Way
Expense
Expense*
General
Incidental
1952
1951
13.950
17.880
18.830
—.—1.930
3.140
2.990
On
0.970
0.990
69.250
73-190
15.960
13.670
2.490
Expense
Totals
—
Taxes
•->
—
Equipment and Joint Facility Rents..
Grand
Totals
1.400
86.610
—
_
Their
such
substantial
effected, and
of
of
result
were
has
to
roadway
.
compared with
marked
Comment has already been made
A
3.14
times
in
1952,
as
Net Income
Net
Income
$27,834,900,
After
a
as
(after taxes and charges) amounted
compared with $18,856,597 for 1951.
dividend
of
5%
balance of Net Income in
per
1951
share
on
on
1952
the
figure of $12.21
per
Preferred
was
the Common Stock,
to
Stock, the
equivalent to $19.13
as
compared with the
striking example
was
greater
use
of
of
the
on
new
post-war
of
increasing efficiency
in train
the increase in the "pay load" carried
in
also
1954,
attached
to
the
Ex
A nation-wide settlement
and
contained
effected with the Engi¬
costs
the
a
in
basic rates,
increased
end
of
the
an
additional
year
$1,141,800 per
result
of
annum
by
the
cost-of-living
These increases thus aggregate $2,787,264.
as
a
a
177,
Express Rates and Charges—1951, and tha
in parcel post weight and size limits which
became effective January
1, 1952. Further increases in
express rates and charges are
being applied for.
changes
New Rail
laid 19,057 tons
compared with 26,779 tons laid in 1951.
The
tons of
were
of
new
rail,
Company has ordered, subject to allotment, 32,503
rail for the year 1953.
new
New Equipment
During
1952, the Company received and put into
service, (a) 255 all-steel box cars, (b) 300 70-ton allsteel hopper cars, and
(c) 52 units of Diesel power, the
purchase of which was referred to in last year's
Report.
On January 1, 1953, the
Company had on order for
delivery early in the year, (a) 3,250 all-steel open top
freight cars, the cost of which, estimated at
$21,352,500/
is being financed by means of
Conditional Sale Agree¬
ments, payable in quarterly installments running over
period of 15 years, at an average interest cost of
ap¬
with no down payment, and (b) 31
Diesel-electric locomotive units, one of which is
a
proximately 3.59%
being
paid for in cash, approximately
$160,000, and the esti¬
mated cost of the
remaining 30 units, $4,680,000, is being
financed
by
as
to
of
approximately 77% thereof
or
15-year Equipment Trust, at
basis of approximately 3.041%.
means
cost
a
$3,600,000,
an
interest
its affiliates and its subsidiaries have in service or
order 880 units of Diesel-electric
power. When those
order are received the operation of the entire South¬
pany,
was
cost-of-living provision. As a result of
the Company's payroll costs
increased approximately $1,645,464 per annum. Payroll
increase
as
Including the locomotives just referred to, and one on
for one of the
Company's subsidiaries, the Com¬
neers, Firemen and Conductors on May 23, 1952, of the
dispute involving wages and rules which had been the
Subject of negotiations since the year 1949. The settle¬
ment provided for an increase in the basic rates of
pay
the
an
upward trend
increases authorized in Ex Parte
order
Labor Relations
provision.
share.
28,
Increased
similar units in 1951, and 23,937 such units in 1942.
-
compared with 2.49 times in 1951.
February
the increases made permanent.
basis
freight trains, measured by "Gross Ton Miles Per Train
Hour," which amounted to 40,506 Gross Ton Miles Per
Train Hour transported in 1952, as compared with
37,285
1951.
covered
were
the
improving techniques of operation have
contributed substantially to better operating results.
%
charges
facilities,
in
maintenance, and greater concentration of
of
equipment in modern Diesel-electric
operation
i
Fixed
decrease
Expense to Operating Rev¬
enues, and to the decrease in the Operating Ratio.
deductions, there remained for fixed
10.650 in
a
improved
shops.
.
89.350
of
the present level of traffic.
Commission
increases, and the railroads are now
giving
to having the
expiration date removed
1952.
maintenance
charges, for other corporate needs and for the stock¬
holders, 13.390 out of each dollar of the year's revenue,
as
increasingly apparent during
been
due
expense,
large and continuing capital in¬
operating economies have been
low ratio of Transportation
*
After the above
account
vestments,
also
1.840
—
on
Passenger train
as
Constantly
12,690
...—.....—
Equipment
date
it
increase thus
May 2, 1952, and on ari
Company's freight revenues
Commerce
During 1952 there
placed in operation May 15, 1951.
was
each dollar of revenue, were as follows:
Maintenance
175
result of the rate
Diesel-electric locomotives, increasing mechanization
comparable ratios of the several subdivisions of
the
The
on
others
Express payments also showed
'
capacity,, improved
operation
Ernest
.*
hump yards in this
country. Ernest Norris Yard is an entirely new project
placed in operation on September 9, 1952. The major
portion of the new improvements at John Sevier Yard
Net
of
Interstate
expiration
and
5,410
->
among the most modern car-retarder
were
The
the
basis increased
estimated $18,228,000
an
12%.
increase
Yard
mechanical
over
effective
became
less
certain
,
ern's
two
accruals
territory), but with
commodities; and on
1951.
South-
year.
20.93%
specific
revenues improved in 1952 due to
the*
•10% increase in basic fares in Southern
territory which
became effective November
1, 1951, and the additional
mail pay compensation which
also became effective in
4.551
at
2,000,000
Great
(which is the ratio of total Operating Expenses to
Operating Revenues) being reduced to 69.250 out of the
operating dollar, as compared with 73.190 the previous
Railway Tax Accruals again increased to a new post¬
high of $43,352,931, an increase of $7,504,687, or
Southern
.authorized
.
North-
Oliver
of the
consideration
'•
"
this
the
,t
$2,100,000
Knoxville
annual improvement
wage*
decision, and in conformity
President, hearings were held
in January,
1953, to decide whether
of
of
increase to
Parte
After
—
premitted
view
held the maximum
•
Before
at
—
Capacity
Approximate
New Orleans
Ratio
war
in
certain
annual
Atlanta
gross
6%
steam
on yard construction and im¬
expenditures
in
connection
with
Southern's John Sevier Yard
increase
of
by
compared with 1951.
The
retirement
In
order
15% freight rate increase
originally applied for (it hav¬
ing already granted interim increases to the extent of
provement.
.
annual
request
9%
1,855,318
Spent substantial amounts
r
Total
14,181,141
Company and its affiliated lines since
'
permitted
the
Increases in Rates, Fares and Mail
Pay
$110,156,100
Gross
At
parties
April 11, 1952, the Interstate Commerce Commis¬
sion, in Ex Parte 175, granted the balance of
locomotives.
•
policy
The
to whether Gov¬
as
On
28,628,156*
to
ap¬
increased
further wage increases are
justified and, if so, what the
wage increases should be and the effective date
thereof.
40,485,021
...
principally
non-operating
82,262,776
_
due
agreement
increases.
before this Referee
|
_
cars
Credit,,
an
stabilization
wage
policy
the
•
$
...
and
prior settle-
as
decision to the effect that the
Government wage sta¬
with
k
Accounts
...
Total
64,500.413
"
units
cars...
______——
111
Firemen
same
of the*
of the United States then
ap¬
Referee who, on December
30, 1952, rendered
a
increases.
—$38,438,476
train
(the
provisions of the Agreements.
wage
bilization
843,357
re¬
1951
-
fmiles)
miles
passenger
the
and
1952
—
*
of
Average
/.
1952
NOTE:
/
Average revenue per ton mile
Total freight revenue.—'.———_,
"
in
a
1,734,712
equipment
other
compared with 1951, were:
as
(tons)—.
distance
miles
All
'.
.
train
7,832,556
6.081,949
__
__
locomotive
Freight
ernment
pointed
2,309,672
____
i.
:
.
3.56%
creased rates and fares
;
_
1952
$271,624,397, the largest gross revenues in the his¬
tory of the Company. This increase of $9,335,189, being
to
unable to reach
were
3,085,415 v
—_i
other
were
Engineers,
Referee to decide whether further
wage
a
referred
9,879,845
2,954,043
,
surfacing....
interlockers__l.__i__'__i_.i.^._._^
and
the
clause
a
Shortly after July 1,1952, the Organizations filed notice*
their desire for
wage adjustments under the above
.
of
3,716,927
material
laying and
Signals
with
employees, the President
$
___
Track
tho
justified.
improvement
___
The Year 1952
of
1952, request the President of the United States to
point
Structure Accounts
Rails
track
operation
providing that if Government wage stabili¬
policy permitted so-called annual improvement
increases, the parties could, on or after July 1,
Wage
the Preferred Stock.
on
follows:
as
Grading
Bridges, trestles and culverts..Other
and
.
employees)
Way and
history.
settlement
zation
Large expenditures for capital improvements to
Way
and
Structures
and
for, new Equipment
during the
twelve-year period, 1941 to 1952, inclusive, have been
made. A summary classification of these
expenditures,
Jess
control
.
ments in 1951 with the Trainmen
and with
Operations
-
I
The Revenues from
The
Conductors contained
...;
.
'•
Common Stock, out
the
year 1951, an ag¬
share, at the rate of $1.00 per share
March,- June, September and December,
in
possession,
railroads.
con¬
are
operation.
*at the end of 1952.
are
for
were
dividend, of $1.25 per share on the Common Stock
paid on the quarterly dividend date, March
14, 1953,
of the surplus net
earnings of 1952, after setting
out
Steps were taken toward meeting the 1953 and 1956
long term debt maturities which amounted to $89,605,000
These
the
on
earnings
Stock
per
^aside therefrom dividends of 5%
made
was
A
May
Foreword
progress
1952.
Preferred
paid
was
surplus net
gregate of $4.00
of the affairs of the
Substantial
the
the
on
on
on
ern
Railway System and
its
subsidiaries
will
be
com¬
pletely Dieselized.
At
December
31, 1952, the Diesel freight units in
handling 97.17% of the System's gross ton
miles, and Diesel-electric power was moving 99.74% of
service
the
were
System's
passenger-car
miles.
Use in 1952 of the Company's Financial Resources
In addition to meeting all of its current expenses and
For the year 1952,
the Company's return
investment, before depreciation,
was
4.60%.
on
its total
Effective May
ment,
the
23, 1952, the date of the above settle¬
United
States
Government
terminated
and
fixed
payments, the Company paid from its treasury
during the year the following conspicuous items:
26
(1334)
The Commercial and Financial
Chronicle...
C
ADVERTISEMENT
ADVERTISEMENT
Thursday, March 26, 1953
ADVERTISEMENT
SOUTHERN RAILWAY (Continued)
(1) For capital improvements to Road and Structures,
$10,212,702; for Equipment, $13,560,240, consisting of
down payments on new equipment $1,671,872, install¬
ments of equipment obligations $9,167,505 and for ad¬
ditions and betterments to equipment $2,720,863; making
an aggregate of $23,772,942 capital
expenditures for the
year, as compared with $20,387,507 so expended in 1951;
(2) For
dividends,
paid in 1951;
was
the
$8,192,800,
amount
same
as
The
Company
contemplates continuing to purchase
Development and General Mortgage Bonds
additional
from
time to time when
they
be acquired at satis¬
can
factory prices.
The remaining 1956
maturity is that of November 1,
1956, when $12,770,000 principal amount of the Com¬
pany's East Tennessee, Virginia and Georgia Railway
Company Consolidated First Mortgage 5% Bonds
come
due, for which there are reserved for issuance to the
Company against the retirement thereof, an equal
principal amount of the Company's First Consolidated
Mortgage Bonds, maturing in 1994.
(4) For the purchase of the Company's proportion of
additional capital stock of Fruit Growers Express Com¬
been reduced to
The 1953 and
(along with others of the
owning said company), $244,600.
pany
proprietary
the
principal
for
the
amount
acquisition
of
$42,303,000,
debt
of
securities
held
reduction
or
in
in reserve
maturing
of
obligations, subject to further order of the Board of
Directors, and (b) cash of $34,476,741, as shown in the
balance sheet, the latter being reducible by items which
not
were
business
cleared
for
the
through
the
banks
the
at
close
of
year.
Net Funded Debt and Fixed Charges
Dec.
Funded
Debt
Leasehold
Estates
Equipment
Trust
31, 1952
Obligations
$66,660,000
as
and denied
Does
Bonds,
not
include
which
were
January l,
Does
-
owned
.
to
such
67,960,160
$270,581,660
to
be
the
as
Board
available for
such
of
Directors
may
purpose, the
Com¬
pany has available for issue, pledge or other disposition,
collateral, including, (a) $12,500,000 principal amount
of bonds secured by a first
mortgage on the Company's
St. Louis Division, (b) $9,513,200
principal amount of
its First Consolidated Bonds of
1994, now in its treasury,
(c) the additional $12,770,000 of such First Consolidated
Bonds of 1994, reserved against retirement of the East
Tennessee, Virginia and Georgia 5's, and (d) many
valuable
The
26,743,000-''
$288,720,855
remaining maturities, in addition
treasury cash
determine
$175,878,5001
86,413,655
3
Does
owned
include
the
not
by
The
a
$18,361,900
Company
securities,
together
with
certain
un¬
Company has not yet determined when it
will
take further steps in furtherance
The
in
the
Company's
subsidiary
of
St.
the
Louis
Division
Company
as
of
of
Securities
Estates,
or
Company
its
or
subsidiaries
as
Company's net fixed charges,
by
Leasehold
on
the
Interstate
of
December
31,
1951.
annual basis,
on an
Commerce
Commission,
approximately $11,882,000 at December 31, 1952.
were
Reduction of Long Term Debt
which
has
(inclusive!,
as
as
to
been
for the
audited
147
correct
study and
the
manufacturing plants at points served by South¬
Railway System and there were substantial additions
to 114
existing plants, representing
ment
of
pany's
Among such plants
A $2
of the financial pro¬
been
the
reducing long term debt and fixed charges,
resulted, during the period 1937 to 1952,
in retiring,
acquiring and being relieved
(which they were obligated to service
securities
to
interest, dividends or rental payments) thereto¬
fore outstanding in the hands of the
public, of over
$139,440,000; and the Company's net fixed charges have
been reduced during the same
preiod by over $4,650,000
annually.
although
held.
filed,
excess profit tax
through 1946 have
1941
of
several
In
the
57
were
distribution
new
also*
ware¬
million
are
were:
ammonium nitrate
fertilizer plant at
optical glass plant at Harrodsburg,
Kentucky*
an investment of more than
$2 million.
new
A
half-million dollar automobile parts
depot on
near Charlotte, North Caro¬
lina,
which
will
produce
substantial
freight
new
the
revenues.
underground storage of liquefied petroleum gasby one of the major oil companies at Dragon,
Mississippi, located on the New Orleans and
Northeastern's line.
$39,484,310.54.
The Com¬
July 1, 1952, but has not
detail by the administrative
Bureau
of
Internal
1
The Atomic
on
in
the
Company's line
The
by
filed
considered
representatives
year
There
which will represent
liability, as redetermined after further
the basis of decisions of the courts since
was
during the
aggregate invest¬
an
dollars.
houses. These new plants and
expanded additions
expected to produce substantial new revenues.
tax
protest
billion
one
Sheffield, Alabama.
calendar years
were
over
established
by field agents and additional taxes of
are
tentatively asserted.
The Company
on
returns
South, particularly
new
ern
has
completed and filed its protest to the revenue
agents' reports and asserts therein that the actual tax
payments made for the period in question exceeded
the
of the
the South served by Southern
Railway
System, continued in 1952 their growth to a greater
extent than in
any other area of comparable size in
the United States. The
year saw ground broken for
Company's federal income and
$30,192,272.86
yet
The Company and its System affiliates continued
program of
The
returns
manufacturing activities
that part of
A
its subsidiaries as of December 31, 1952.
$18,215,600 of Securities on Leasehold Estates,
include
the
defined
as
of
by
>
New Plants
other
1951.
not
by
$12,474,000
acquired
Lines, Inc., for a tem¬
Seatrain Lines, Inc., has appealed.
n
Federal Tax Liability for Past Years
1
motion by Seatrain
Industrial and Agricultural
Development
gram outlined above.
Totals
a
porary injunction.
$89,605,000 have thus
of February 12, 1953.
mortgaged property.
Dec. 31, 1951
$175,711.5001
26,595,7002
—
(one of them the Company) and
injunctive relief against all defendants.
By order entered
12, 1952, the court dismissed the complaint
November
railroads
1952, (a) in¬
.
four of the defendants
1956 maturities of
To provide for these
The Company had left on December 31,
vestments in United States Government
at EdgeIt claims that the defendants have
by concerted action sought to impair its operations. * It
seeks treble damages
aggregating $165,000,000 against
water, New Jersey.
I
(3) For the acquisition and cancellation of $167,000
principal amount of the Company's Development and
General Mortgage Bonds, $175,295; and
ing the Company, and a number of railroad associations.
The plaintiff in this action
operates railroad car ferries
between ports in the South and its terminal
Energy Commission began its Oak,
Tennessee, expansion program at a cost
Ridge,
estimated to be $464 million which will
approxi¬
mately double the present freight revenues from
that installation.
Revenue,
preliminary conferences have been
of things it is impossible at this
nature
time to make any accurate forecast of the final outcome
of this
proceeding. In the opinion of counsel of
the
Company, any ultimate additional
will not be such
as
cost to the
Company
materially to affect its finances but,
rather, there is reason to believe that a part of the
taxes paid for the period in question
may be recovered.
Returns for the years subsequent to 1946 are in
Not included
as
development in 1952 but publicly
a
announced for 1953
were
a
multi-million dollar modern,
cigarette plant to be constructed at
Greensboro, North
Carolina, an electric meter plant at Raleigh, North
Carolina, and a welding rod plant at
Montevallo*
Alabama.
•
(
.
process
of
audit.
Power
Financial Program
The Reparation Cases
In furtherance of
debt
a plan to meet maturities of
funded
coming due in 1953 and 1956, a Special Meeting
of
the
at
which
Stockholders
classes
meeting
of
flexible,
was:
Stockholders
held
72%
over
on
in
November
the
approved
a
21,
aggregate
of
commenced
both
the
comprehensive, but
for refunding or otherwise providing
for such maturities which
aggregated $89,605,000 as of
31,
1952.
The first step in the program was taken in
December,
1952, when the New Orleans Terminal Company sold
an
issue of $8,000,000
principal amount of its new
First Mortgage 3%%
Bonds, maturing in 1977, guaran¬
teed by the Company.
In January, 1953, the Terminal
Company used the proceeds of the new
issue, supple¬
mented
by approximately $973,000 of its own funds
and
advance from the New Orleans and
Northeastern
Railroad Company
(which latter company purchased
the stock of the Terminal
Company), to prepay, with
interest to
maturity, the
As
second
a
step in
its program, also in
December,
1952, the Company and its 100% owned
System affiliate,
the New Orleans and
Northeastern Railroad
Company,
$15,000,000 principal amount of Southern
Railway
Company-New Orleans and Northeastern Railroad Com¬
sold
pany Joint 3%% Bonds,
maturing in
the properties of the latter
company.
The
proceeds from the sale of
Orleans and Northeastern Joint
of
the
New
Orleans
1977, secured by
these
Bonds
Terminal
Southern-New
and
stock
Orleans and
to
from
the
the
New
Northeastern, were applied to or reserved
purchase for retirement or
payment before or
at maturity of the
Company's Development and General
for
the
Mortgage Bonds.
The
Company made
a
public
offer
January 14,
1953, to purchase for retirement up to
$30,000,000 prin¬
cipal amount in the aggregate of
any of the 4% Series,
6%
Commerce Commission assailing, on be¬
half of the United
States, the reasonableness of freight
charges paid by the Government during World War II.
The Company is a
party defendant to these complaints,
along with other railroads of the United States. Repa¬
ration in large amounts is
sought, estimates of the
Government ranging from two to three billion
dollars
the
Series
and
6V2%
Series
General
of
the
on
Development
and
Mortgage Bonds, maturing April 1, 1956, which
resulted
in
the
retirement
of
$11,522,000 principal
amount of such
Bonds, leaving outstanding on February
12, 1953, $53,890,000 of the issue, which had
amounted
to $111,333,000 on
January 1, 1942.
railroads
impossible
at
this
of
the
country
to
estimate
time
the
Company has involved
by
Department
proceedings
lieved
to
an
outstanding $11,423,000 prin¬
cipal amount of its First Mortgage 4% Bonds. These
bonds, guaranteed by the
Company, were thus retired,
prior to their maturity on July 1, 1953.
sale
Interstate
from
of
as
Justice
whole.
a
the
under these
amount
It
be
representatives.
final
a
sion
Zone 3
(embracing Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South Carolina
and
Virginia),
on
Commission Zone
the
1
All
hand, and the Federal Power
one
(embracing Connecticut, Delaware,
Maine, Maryland, Massachusetts, New
Jersey, New York,
Hampshire, Rhode Island and Vermont), on the
other, shows:
New
is
Installed Capacity
which
June 30,1952
Installed
decision will
be reached in 1953.
January 1, 1956
(After scheduled
Capacity
these
being vigorously contested and are be¬
without merit.
Hearings extending over
have been concluded, and briefs were filed
It is possible that
son
estimates made
are
several years
■March 18, 1952.
Electric power generation in the South is
proceeding
a rate well above
the national average. A
compari¬
of installed
capacity, June 30, 1952, with scheduled
capacity on January 1, 1956, in Federal Power Commis¬
at
June, 1946, the United States Department of Justice
the-filing of a series of complaints before
1952,
program
December
In
net
Percent!.
additions)
Increase
Zone
i
(Northeast)
18,511,763 kw.
24,201,663 kw.
30.T
Zone
3
(Southeast)
10,753,424 kw.
19,866,630 kw.
84.8
Work
began during the
year
on
five
new
generating plants and substantial additions
coal
steam,
were
mades
to two
existing plants, all at pbints reached by Southern.
Railway System, which represent an aggregate estimated
Divisions
In last year's
Report, reference
ing controversy
was
made to the pend¬
Commerce Com¬
investment of $280,725,000.
before the Interstate
mission
involving divisions of interterritorial rates be¬
tween the North and the South and
between the North
and
the Southwest and to a
proposed report of the
presiding
Examiners
recommending
readjustment of
divisions in favor of the North and against the
South and the Southwest.
On January 12, 1953, the
Commission decided^ these cases
by a seven-to-four
vote, the majority's decision being slightly less un¬
these
favorable to the South and Southwest and less
favorable
to the North than the
previous recommendation
by the
Examiners.
The majority made no estimate as to
how
decision would cost the lines in the
South,
but the dissenters estimated that the decision
would take
much their
annually between $25,000,000 and $28,000,000 from the
lines in the South and between
$12,000,000 and $14,000,000 from the lines in the Southwest and give these
amounts
to
the
South have filed
lines
a
in
the
North.
The
lines
in
Metal and
The year again showed
basic iron and
steel
Metalworking
a
steady increase in the South'®
making capacity.
metalworking industry in the South
nificantly. During the
year
In
is
addition, the
developing sig¬
the following
new
plants and
additions in this field took
place on Southern
Railway
System:
A $30 million transformer
A
plant at Rome, Georgia.
plant to manufacture power shovels at North
Chat¬
tanooga, Tennessee.
A
plant to produce brass, iron and steel valves
and
fittings at East Birmingham, Alabama.
the
strong petition to the Commission for
>
Chemicals
reconsideration.
|
.
The 1951 Annual Report mentioned the
Seatrain Litigation
.*
1
new chemical
plant under construction at Mcintosh,
Alabama, to pro¬
.
In December, 1951, an action under the federal
anti¬
trust laws was filed in the federal court in
New
Jersey
by Seatrain Lines, Inc., against eleven railroads, includ¬
duce chlorine
and
other products from
covered salt dome and commented
for additional
on
chemical development.
a
recently dis¬
the area's
potential
Progress in such.
Volume 177
Number 5206... The Commercial and Financial Chronicle
(1335)
ADVERTISEMENT
ADVERTISEMENT
British Investment Abroad
SOUTHERN RAILWAY COMPANY
SOUTHERN RAILWAY (Concluded)
Financial Results for the Year
By PAUL EINZIG
further development was made in 1952 in the construc¬
tion of
In 1952
half-million dollar plant at Mcintosh to produce
a
insecticides, and by the building of
and
$4 million plant at
a
.'
location to produce various chemicals.
same
Other developments during the year in the
field
were:
carbon tetrachloride;
Sunbright, Virginia,
a
miscellaneous
cost
Leaving
plant at
total
rev¬
$271,624,396 $262,289,207
of
maintaining the property and of
the
railroad
was
188,102,101
balance from railroad operations of
a
Federal, state
$100 million
a
capital
191,964,025
and local
taxes
$83,522,295
$70,325,182
43,352,931
35,848,244
$40,169,364
$34,476,938
3,792,404
6,529,726
required-
will
balance of
a
Company
paid
in
other
to
companies
those
Numerous
of the amount received by
excess
for
.
sources
■
Leaving
Pulp and Paper
income from railway operations of
an
income
stocks
derived
and
bonds
from
and
investments
miscellaneous
$36,376,960
ment
Ground
broken
was
multi-million
dollar
during
pulp
the
and
for
year
two
plants
paper
Making
the
mill which will employ about 650
company at
a
workers;
large
a
the
4,733,378
3,905,985
$41,110,338
$31,853,197
and
debt
rents
and
paid for
miscellaneous
equipment
leased
deductions
Resulting in
a net income
were
12,996,600
$27,834,916
$18,856,597
!>aper company
a
$3 million addition by still another
to its Richmond, Virginia, plant.
.
December
December
Increase or
31,1952
31,1951
Decrease
of
facilities,
shops,
generally acknowledged.
freight and
place in the textile field is
Several
other
industries along
new
Less:
fixed
donations
the year.
quisition
seems
clear that the South will also lead in the
$681,829,151 $689,850,162
and
grants, and
123,908,392
9,812,648
$40
million
fibre
synthetic
mill
has
Site for
been
a
new
announced
i
along the System's line in North Carolina, but ground
Site surveys
under
are
way
$567,733,407 $565,941,770
$1,791,637
affiliated
of
other
carried
76,583,581
balance
under
to
75,991,256
592,325
The
economy.
agriculture in 1952
yields
in
per acre,
Southern
The
disbursed
be
and
acceptance
equipment
21,352,500
4,861,950
16,490,550
$665,669,488 $646,794,976
$18,874,512
And
temporary
U.
The first is being
heavier
thousands
of
being
acres
during the year—482,000
The Southeast shows
«ince
varieties,
crop
1949, leading
a
seeded
The
in
in percentage
Georgia,
good
increase.
having become the
area
„
of
Steadily
and
agriculture,
growing
population
spell
industry
and
order
not
toward
the
industries
continues
to
-
look
with
development in the coming
and
yet
as
well
luring plants.
as
expansion
to
its
medium
for
the
to
to
owed
to
and
wages
With
4,409,944
296,786
other
$791,819,119 $750,913,549
$40,905,570
railroad
.
.
•
accrued
but not yet
$35,152,365
reserves
1-
-
$4,537,942
$39,690,307
45,184,732
*
36,162,824
3,822,769
•
3,224,699
598,070
4,360,324
4,600,960
240,636
12,286,938
14,246,444
1,959,506
$100,807,128
$97,925,234
$2,881,894
$691,011,991 $652,988,315
$38,023,678
••
9,061,908
leased
from
other
Com-
liabilities,
due
to
including
others,
but
not
total
these
of
and
liabilities,
was
reserves
After deducting these items from
the total assets there remained,
-
steady progress toward them, the
Company is
confident in its ability adequately "to Serve the South,"
and to pay a fair return to
the
owners
of the property.
for
the
capitalization
of
the
Company, net assets of
The
capitalization
the
of
consisted
pany
of
Funded
during the year and the Management is most apprecia¬
for British inter¬
material
resources,
River
recent
the
investment.
larger
decision
project in the
than
that
new
Gold
British
The amount
required
by
in
to
ahead
go
Coast
is
policy in respect
involved
the
is
New
assert that money
New
an
policy of
involved
to be spent in Britain with the exception of the labor
in the actual installation of the
bridge with
local labor.
It is true part of the raw material
needed
unattractive proposition.
The main reason why the
Preferred Stock
Common
Stock
a
After
HARRY A. DE BUTTS,
brake
on
lending
mained
>
.
President.
a
in
from
not
Treasury is anxious to put
overseas even
if it does not involve
the balance of payments lies
in the fear that, apart
altogether from balance of pay¬
ments
considerations, there are not enough savings avail¬
able in Britain for capital investment on
a
large scale.
Although this situation has developed gradually as a re¬
sult of the burden of
high taxation, it is only during the
last few months that British
opinion began to take notice
of .what is
happening. The figures of small savings,
though far from adequate, are not nearly as unsatisfac¬
tory as those of the accumulation of large
capital. Pri¬
vate fortunes are
gradually dwindling down, partly be¬
cause their owners have to live
on their capital and
partly
because of the heavy death duties. Small
savings are not
suitable for overseas investment or
indeed for any form
of industrial investment.
They usually assume the form
of Savings Certificates or
Savings Bank deposits. Less
and less large
private capital is becoming available for
industrial investment and for overseas
financing. To an
increasing degree the funds for that purpose have to be
The
increase of their
resources
does not
pensate, however, in full for the decline of the
big private investor.
com¬
resources
A revival of investment
abroad
$274,599,155 $256,312,660
60,000,000
60,000,000
129,820,000
129,820,000
total capitalization of $464,419,155 $446,132,660
deducting
Tested
-
so
was
an
$18,286,495
necessitate
This end
$18,286,495
a
on a large scale would
saving on a large scale.
only be achieved through a substantial
revival of private
could
reduction of direct taxation. For that
purpose it would
be necessary to make drastic
cuts in public expenditure.
Possibly the gradual realization by British public opinion
that under the
existing system there cannot be
a
-
over¬
was
Debt, including bonds,
tion from
J
many
Zealand
of the
equipment obligations, etc
LCaklng
Respectfully submitted, by order of the Board,
with
char*
irresistible temptation.
vestors.
fol¬
tive of their interest in the success of our Company.
J
a
provided by insurance companies and similar
large in¬
Com¬
the
lowing:
The entire personnel has worked well and effectively
..
com¬
its financial
continuing goals.
secure
raw
for the bridge would have to be
imported. Even
the point of view of the balance of
payments it
bal-
—
credits
•«>
are
Volta
any excessive pressure on
The
condition.
These
essential
early result
an
investment. In the case of the New Zealand
project
it played a secondary part in the
Treasury's unfavorable
decision.
After all, the whole of the amount
mate¬
for
yet adjusted
improve
Britain
seas
the
panles
1952, the Company has continued to
and
however,
dom is not the only obstacle to a bolder
1,750,354
"
to improve its property as an earning
future,
20,511,840
4,706,730
Deferred
year
Zealand
outside the
a
ment
'
resources
Today,
which does not
or
and rents
items
During the
control
panies, and interest, dividends'
Operating
Conclusion
use
New
The balance of payments position of the United
King¬
•Depreciation of road and equip¬
new
existing manufac-
The
Zealand would be safer than
money
African country which is just
undergoing
phase of extreme nationalism. Nevertheless, the possi¬
an
unadjusted
available
rials, supplies,
a
confidence
of
Commonwealth and
was a
bility of increasing the aluminum resources of the
Sterling Area through the Volta River scheme provided
progress
years
over
a
178,077
for
necessary
Taxes accrued but not due
.
23,238,104
18,761,486
Company
due
Company
or
ests
invested
18,089,507
hand fuel,
The Assets of the Company totaled
prosperity for the South.
The
the
general.
project which will not promise
invested in
23,060,027
Company
on
-
assets
ances
continued
.
involved
The
diversified
'24,198,596
42,288,103
na¬
100,000,000 chickens.
Diversified
.
p
British
project, and it is stating the obvious to
debits, including items owed to
hut
tion's leading broiler center, with an annual production
excess
any
times
$5,573,196
and
Company
the Gainesville,
in
the
supplies
Deferred
Poultry has also become "big business" in the South—
in
vetoed because it
Sterling Area,
keeping road and equipment in
22% gain in livestock population
the nation
owed
$31,760,089
in
Securities—
companies
Company had
other
pasture
official
immediately productive.
the
rails, ties, bridge material and
in Georgia alone.
acres
railroad
others
through farm mechanization and
fertilization; the second largely through pasture
building,
grass
better
and
new
overseas
was
of external
$37,333,285
to
investments
Government
S.
Other
accomplished through
the
material supplies.
The Government's
Company had cash and spe¬
cial deposits amounting
and in diversification through engaging
better soil preparation
of
acteristic instance of
continued progress in increasing
branch of livestock farming.
some
trend
Sterling Area. This prin¬
ciple does not rule out the financing of the construction
of means of transports provided that
they are vital from
the point of view of the commercial
exploitation of raw
Sales
sound agricul¬
outstanding features of
were
explanation of the apparent
gives some indication
whether within
contracted
Conditional
delivery
upon
of
tural
the
ill afford to employ her diminished capital resources
can
companies
investments
Total Investments
a
in
investment
area.
non-productive capi¬
Although th^ proposed bridge would be
important link in the Dominion's transport system,
not
It is important to remember that the South's industrial
and must be buttressed by
the Newfoundland
from the point of view of the balance of
payments of the
and
Agreements,
•economy is
'
notes
for
Agriculture and Livestock
£
to
was
Sterling
on
Unexpended
for other such plants.
h
the
vestments in stocks, bonds and
at
has not yet been broken.
-
the 19th Century and to a less extent right to the
outbreak of the war, a large proportion of British
capital
investment abroad consisted of undertakings which were
In addition the Company had in¬
synthetic fibre branch of the industry.
*
out
114,095,744
new
the
%
»
striking
scheme
within
■
The
between
more
-: r
of
it would not yield any tangible return in the form of in¬
creased exports or reduced imports.
It is true, through¬
$8,021,011
ac¬
adjustment
v..
:V
tal investment.
and
of
for
resources
Labrador.
Zealand
investment
Depreciation, amortization,
•with additions to existing plants were commenced during
It
property
and
involves
scheme
locomotives,
passenger cars
interests
contradiction
while
the
an
The South's outstanding
'V;
••
Newfound¬
attitude towards investment in
land, railroad tracks, terminal
Textiles
other
inconsistency
On
The Company had investments in
>
Canadian
New
The
Financial Position at the End of the Year
On
which
'
British
investment
scheme
investment by another large company at its
Memphis plant, and
and
the
as
be
dollar
the
the
exploitation of the
apparent
trust
of
of
Newfoundland
railroads
13,275,422
the
simultaneously the Govits blessing to the estab¬
two decisions is all the
totaled
or
resources.
Corporation, Limited, by joint
Area
paper
On
overseas.
gave
British
Charleston, Tennessee, began construction of
$50 million newsprint mill; major additions
$3,290,000
funded
on
obligations,
container board
paper
total income of
a
Interest
$30 million
on a
land
items
new
along
Southern Railway System lines: construction began near
Home, Georgia,
$27,947,212
in
was
material
raw
hand almost
■
lishment
Other
of
— By
a recent decision the Treasury
important project of bridge construction un¬
an
investment
it from
control
secure
LONDON, Eng.
smaller chemical enterprises were begun.
;
projects which will not result in
dertaken by British firms in New Zealand on the
ground
that there is not enough capital available for such
hire of equipment and use of joint facilities
$15 million plant at Lensanto, Alabama, near Shef¬
field, to produce chlorine and caustic soda.
resources on
not
vetoed
Leaving
plant at
The
a
a
ultimately improving her balance of payments
Sheffield, Alabama, to produce phosphorous chemicals;
and
operations
of
operating
chemical
$3 million
Commenting on recent action by British authorities
relating to foreign investment, Dr. Einzig points out
Great Britain can ill afford to employ her diminished
Southern's Appalachia Division
on
produce lithium chemicals;
to
The
$3*£ million plant at Louisville, Kentucky,
a
to produce
In 1951
The Company received from freight, passenger
enue
the
27
net
this
surplus,
the
of
capitaliza¬
assets
there
largely
property, of
revival
lending abroad, and even domestic capital investment
handicapped, may go some way towards en¬
is gravely
re¬
in-
$226,592,836 $206,855,655
$19,737,181
abling the government to muster
public expenditure.'
up courage
for reducing
23
(1336)
The Commercial and Financial
This
Agriculture and the
last
panded
Equipment Industry
grain
crops
able
as
development to "a land where the minds and hearts and
Four
Horsemen
men
the
and
free."
are
tion
roughshod
humanity
over
cnanH
tract
case
food
I
years
p are possible.
As
•„
said his
with
Gerald
J.
Eger
him by day as
invention
second,
and
the
and
third, the
power.
accom-
:
for
was
extensively in orchard
Coast
combine
area,
farmers
to
suited
of
develop
by
powered
the
a
as
acreages
of the West
dry conditions
were
the
for great power in
was
All of these
developments were
promising, but they did
useful and
not solve the farmer's
problem. It
was still not
possible for him to
go
to
completely
mechanized
farming. The stumbling block was
that
tractors
ciently
ma-
great
ones
where
the drawbar.
The
it in this
the
the twine binder until
have
later time,
a
used
grain harvesting
machines to illustrate the
stages
0f
development
in
usefulness.
Somewhat comparable
steps took
place
in
other, lines
fpr other
what
t
ti
of
thp
result
and-nrtivitv
J?
machines
farming purposes.
was
rv,anfJA
development;
-
combine
or
Small crawlers
work,
while
larger
adopted
in
regions
ap-
hilly
its rela-
could
in
used
not
be
effi-
cultivation.
The
farmer still had to keep horses
other
draft
animals
for
or
cultivat-
ing and, so long as he kept these
in
1915, and animals, he had to reserve a part
gradually
spread
eastward
but of his acreage to grow feed for
really did not begin to replace them and in
many cases farmers
.'I
,
used
were
livestock,
its
were
in
power
tively low height.
nuisance
a
to
advantages
tractive
soil conditions and
It reached the Middle
West
smaller form about
ofranimal power;
era: of mechanical
era
loose
Coast.
a
,
the
done with
and the
years, and I have divided it into
three sections.
First,, a brief era
pf
automatic
many as 40 or 50 horses. This
short history of the changes
^at have taken place in farming
during the last hundred or so
:
was
chief'
great
developing offstage.
Pacific
chine
Farming
in
Its
main need
was
huge
one
.
cut
1878 the twine binder
remained
the
I believe you may be interested
in
civilization
f
nf
T
-
ma"
To
take
ilVmnr;arif
t
romnaJe
and
+hi<=
ci.hcH
animal-nnwerpd
chines for human labor?
+h
;
oil
thic
felt
they
could
not
economically
use. both a tractor and draft ani-
ma^s*
*
problem
This
.
was
dramatically
solved in- 1924 with the introducT
tion of the row-crop, or all-purrP°se type of tractor, which has
since become the standard type for.
farming operations and which for.
first time made possible cornpletely mechanized farming. This
tractor differed from earlier trac-A
ll 1 Win
that U was a three-wheeled
machil?e with high axle clearance,
tup 'united State* ripnartmpnt
pushed westward across the MisZ ^ derived its traction from two
Agriculture' The numhpr nf
sissippi some 200 years later had" farms started with a
}arge driye wheels at the rear and
remarkable
h
renmVed
tn
rwndnee 'inn
its steerin£
a small wheel
only crude plows'at best, and spurt of invention
and developbiichel*'of wheat wpnt
usually resorted to the hoe and ment
frnm
cei?tered at the front of the mar
during this-relatively short 2rr
hour* in ifun tn «7 hn,.rc in
axe to cut holes in the
c^ine* Its rear wheels were made
prairie sod" period of about 20
years, Air were
iqoft
™p
P
where
the
L SI
seeds
of
adjustable to accommodate differtheir first
designed to make it possible for tzZj'
Ap
-Upj''
ZL™
nV^rn"wPnf ^nwn^vn^,
ri " 97R e.nt
spacings-, and its slender
crop might take root and grow, a
ent row spacings,
farmer to apply animal
power
1,
in 1850, the farm
i
T In hi
i shape forward enabled the operapopulation of instead of human
power to
his ^,Hrp^' for
hZ*
nf
nn?^n \x,Inf tor to see the work he was doing,
the United States Was about 85%
work,
'
v 1'
frniT, Iqq +„ 9»i
and the urban population
particularly with forward mount15% of
/I have'told yOu the sequence of
that thp
the total population. In
Murine#
ed equipment. For the first time,
1950, 100 farming operations in
producing a +up
nf
av.ivv.ai
years later, the reverse situation
n1 w
a tractor could cultivate without
crop.
of
ancient
Egypt, Greece
and Rome. Even the pioneers who
prayers,
walked
Changes
.
a
those
,
tie
it
another before he realizes
.
Pilgrims tilled their small fields
by hand at Plymouth Rock, their
methods were little different from
♦
morning
in
designed to help him
plish.
justification for that statement, let me offer this. When, the
over
through
go
are
done
an urpan
are,
the tasks which farm machines
are
and rapid technological advances
has
man's shoulder
he
be
can
a
from his efforts, and those
crop
.
history
each
and fiber
They
in
wire
the
they went,
in produc-
was
dangerous
Meantime,
the steps that the
are
must
way or
a
livpc
minority that
expressed it, in.
watched
farmer
by a
highly skilled and well-equipped
As
writer has
famine
and
lives trvinf
trying in
to exex¬
living from the soil. It is
a
earth.
But
was
as
first combine is said to
have been
built in Michigan in 1836
but lit-
the planting of the crop;
the cultivation of the crop
Those
crop.
have to
men
the
piling
successful
a
using wire
quietly
certain
are
fourth, the harvesting of the
only when the work of producing
undoubtedly
the
th^ir
their
spend
is
famine.
growth
the great mass of
as
dreaded
feared
urban
our
there
now
from
third,
development, for a city civilization is simply not possible so long
since
beginning
time, the
most
of
and
tractors, the crawlers or
track-laying type of tractor was
developed beginning about 1905.
two
peared;
second,
ter of fact, it has been the founda-
famine, pesti-
war,
—
of
•fence and death—who have ridden
as
em-
today.
thing has not changed,
one
Then
85%. Calls farm equipment indus¬
important segment of the national economy, and ascribes
an
Apocalypse
all
and
first, preparation of the soil, usually by plowing and harrowing;
way
and
■of
than is the
crop
bundles
tion.
market-
a
ride,
into
binder
which
on
could
1872
field
try
our
hands of
one
as
By
harvester
a
men
corn.
on
crop
the
and
livestock
on
But
with
emphasis
such and much less
as
phasis
more
food and fiber for the other
Of
of
was
basic steps in the production of
its
•the
was
wheel
1858,
time, except for the cotton
regions of the South, most farming was concerned with wheat and
situation
manufacture of farm equip¬
ment, since it has enabled 15% of nation's workers to produce
economy
form. By 1854 a
self-raking reaper
had
been
introduced.
In
came
There
of life
the
ex-
A
other small grains and
Secretary, International Harvester Gompany
Mr. Eger traces farming developments in U. S. and recounts
the beneficial effects of farm mechanization. Points out
few,
if any, industries have such
far-reaching effects on our national
and
nation
At that
By GERARD J. EGER*
i
westward.
in
come
the
as
century ago
quite different,
the
Farm
diversity has
century
Chronicle... Thursday, March
26, 1953
The era of development covered
approximately: the years 1831 to
1850. Technological
change on the
inon
uprp
the
-pttfjlotPc
arp
man
jue
he
went
went
dwm
about mo
his work,
VWJ.XV,
u.v,
and laid
•down
with
him
at
night.
„
One
-early historian recorded 350 major
famines but explained
that the
listing
incomplete
was
auch occurrences
famine
because
considered too
were
o™
starvation and
as
com-
a
#
mon-place to merit particular attention.
plenty,
this
it
-
.
™
qav
in
Here
that
■
favored
difficult
is
hunger
and
land
to
want
of
realize
Paradoxically, the develop-
existed.^ The farm .population
still .the
are
United
States
of
ment of the machines did not follow that, sequence but
progressed
then
was
only
man's daily companions on vast about 15% and the urban
popula- backward through
it, starting with
areas of the globe. A world food * tion
85% of the total population, the
development .of harvesting
^"curvey just before the beginning
-v'i- machines.- Thife
probably*
came
Use of Mechanical
of World War II revealed that
Jowerr„r.
least five out of every
tiX
billion human beings never got
a
nough
food
f*
,
and
health,
10
diets™
liorder-line
-
•
two
found
were
growth
'
a
Another
vigor.
every
for
'
out
to
be
Why
should
of
on
C0""
n
America
this
in
a!
leaving" only
t/dr|rednadlquIteWCfeUd
favored
be
eternal
so
struggle
for daily bread? Is it because we
have more fertile soil?
Actually
yield
our
lower
per
than
is
acre
those
of
somewhat
other
conti-
gents. Is it because
we have more
land? The United States has about
7% of the world's population and
5%
of
about
its
land,
average
which makes us
in terms of land
per person. How then
are
we
able
t<3> produce so much food
per captia of population than other
parts
of the world
twice as much
—
<pin
person, end
for example,
as
30,11, per
America
.Pen
mem
more
three times
much
as
as
Yet
10 peo¬
ple, taking the world as a whole,
•were ill-fed, and that more than
of
has
aboumecause
this
S.
increased
Koflov
in
:r
farm
^?C rj
v
J?1 w0
jioductive
productive
jOiUltiplied
er
their
ancestors
prod^cl^[g
a
of
mechanical
erations,
of
the world.
urban
We
He
is
source.
life
people
hear
a
sin.**i
deal
is
all
great
less, kn,„n—4.
however,
about
technological develop men
American farming.
*An
equa
address
y gr
the
t of
r^a Salle Street
Exarch
17,
1953.
by
Mr.
at. As
Eger
Women,
a
it may seem to many of
it is nevertheless true
crops of
1850
not
were
as
today,
us
that
even
the
pro-
by'^irn'm''^wmVxcept'^s
duced
of
losses
should
be damaged in
crop
the
fields before it could be harvested.
-I- "
■
'
We
mav
that
sav
vei0pment
began
the
in
of
era
1831
woii
de
when
cyrus'Hall MeCo'rmkkf irst
oret
pub-
de'"onstr^ed a s^cessful
TheKma«hlne whlch
aP '
was t0
become the basic grass mower
appeared three years later in 1834.
The stationary
threshing machine
also came in '1834,
The earliest
u
combine,
uous
machine
a
vests and
The
that, and it is rather
to animal power.
Inconceivable
which
threshes in
har-
contin¬
one
operation, appeared in 1836.
steel plow
was
devised
in
1837, and this made it possible to
plow the sticky soil of the prairies
because
it
would
scour
clean
where, the older
iron
wooden
cast
or
plows
quickly became immovable piles of mud. A two-row
corn
planter showed up
ifed scsle In 1839
\vYc
before
the
ill.,
vwuu
seneraf introduction,,
infroducUon
a
Tslo's
geneial
there
say
is
let early lo4US.
let..e&riyt
nothing uniform
jhQut farming. Farming
the
States is infinitely various,
differs
with
respect
in
to
crops,
soil, weather, production methods,
size of farms, and economic probtions
are
enormous
varia-
between the market gardener of the Atlantic
Coast; the
Wisconsin dairy farmer; the
gen-
now
seems
was
and
on
a
lim-
ddik.
gram
Development of the Tractor
A ------------- — — ••
era of mechanical
pp
S^ers aPP™ximately the
to dme. For a good
,
were
general
this
and
that
essential
by
ma-
for
many
k.
ranchers
.
gionf
S"g" bedt farmer in
and
in
the stockmen
the
high
;
•
and
nlains
and
So-in
the
c&tury
last
WOrk
gan
decade
with
,
of
the
IQth
experimenters
many
the
internal
.
.
rp
tractor.
*;
"
the
cut'
"
Soread
of
Merhaniyed
all-purpose type of tractor
Commercial production of tractors may be said to have
begun
on
a limited scale in
the first decade
of the present
century. By World
War I, tractors had achieved
some
general
use
and
during that
war
but
As
uneven.
might
preoaring the seed bed and in
chines
Gf
a
+be
were
which
intended to null
were
horse-drawn
tvne
and
of
although
was
field
production
ma-
essentially
construction
use
These
Ui
j
place'
Consider
as
^
Jy high farm income—specifically,
^he states of the middle west and
"the southwest.
Expansion
into
ipTtensm
work
the
^
reaper, a man
the
machine
to
grain -off ; the
s
plat-
and
power
shaft
oJher
other
machines
with moving
parts,-thus making these machines
independent of ground traction
for the-first time.
Concurrently
-
with
Largely out of the
desire to carry
into
these
areas
mechanization
came the next major step in the
development of the farm tractor,
°Perati°ns
year
of
four-
the
country.
The
Introduction of
saw
an
ah-purpose tractor substantially smaller and cheaper than
any
theretofore built, with
imple-
ments
especially
designed
to
f|t
its reduced power output. This
trend toward smaller units
of farm
equipment continued through the
d^Pression
wqc
was
years of the 1930's and
intondf,-^
intensified
similarly
after
smSV
tractors of eight to 10
horsepower
were produced and
marketed. As
a
consequence of these develop-
ments, the mechanization of farming in the New England states and
all of the states
these
were
production of small, relatively
take-off
diggers
or
.
l°w-P°wered and low ^priced,
models for the smaller farming
Srf comTirtde^co.S
potato
mountainous,
X."*
"
wnere
the "
farms
.small.
under
j
traveling
be
usually
ud
nower
was
aonlied orincioallv through the drawbar
m
of
was
expected, the area of most rapid
mechanization was,that characterized by row crops and by relative-
S^V.rT'sm lei",'",? S2:'\Jm;'s
In
With the original
rake
farm implements.
earlier-four-wheel
The spread of truly mechanized
rapid
tractor
they
tbeiraa'nn,barVeSting
maehines
an example.
behind
type of tractor led
changes in the de-
Farming
-
tractor
and
and
engine
looking
toward
farming after the introduction
eventually became the the
power
walked
.
Rauid
be-
enm-
.
bustion
what
"bugs" had been
_
partial
unnecessary
to
keep
or mules at all. The devel-
TIT'
T^° devices enabled the
took
a
power
als0 used for piowing where the
o£ Us" implements mounted
terrain permitted. Steam power
directly on the frame of the tracobviously cumbersome and tor itself as
quick attachable tools,
basically unsuited to farm work
stand
use
constantly
of
animal
it
source pf Whereas 'the
a
Florida. California
made
for
was
to
powers of Louisiana;- the oitms
of
It took the trac-
maX^altho^
-ra't01'S ^d, exerted power most^to'^earfst'eam Engines''were imDtemente^tht^ew'' tvoe^hSd
n
o
substitute
b°rses
e
Thp
,
anima1 nnwpr POv
the tractor engine to be applied
eral farms of Pennsylanvia, Ohio
d
3
machines. The belt
or Kentucky; the corn-hog area L™ aDDroximatelv the 75 vears
ir?o
fnOnre VhZZl
PullAey ^ade 11 P?SSlbule t0 Vse a
in the Middle West typified by
nes
whirh
T
have
menfioneH tract0r
run a thresher, a hamIowa and Illinois; the cotton
nLld il nS Hon m^r null, an ensilage cutter, or
Planters of Mississippi, Texas and
fhpir
ralifnrniawas
r
tha
iiH and
fnTS
tneir spieaa was rapid
v,i^«
0t^r !uCh cower
tneir
California; the
statl0nafy macilln®ryl
cane
and
while the
nmr.
field operations.
macmnes, aitnougn occasionally
strengthened
introduced,
less ironed out
ready
,
power tor out of the class
period
~
the
been
usual mechanical
or
of
was
farming by* mechanical
had
power
the
+ n
nr.
harvesting Operations.
..
of
most
chines for
more
.
nnnrnwrr
19th ceJtury a? the
f
°ame ^
developments
all-purpose tractor, as its
name
implied, could and did do
everything required on a farm in
substitute mechanical power for opment of this
f
a! P?we,r' ~u;ean\engines were also-to radial
,aid
middle . of the sign of many
1Qf,
1 urn
growing plants.
The
or
w«o
consequence
other
-1850
'
damaglng the
,
tractors
The
as
mat-
Chicago,
a
startling to consider it, there had
to be a change from human
power
groves
•
■
we
of
power to
in farming opthat has been the
and
rJbeefeVqeiXeg"reaTAsraleaStS' le™S''the
Colorado;
en
faims,
terms
power
But before
of
know, the technological
development of American Indus-
over
in
change.
use
director of power at its
to
it
most recent and the most impor-
United
energy.
and American
familiar marvel
the
on
think
It
the
try
the ripe
think
conversion from animal
.y
As you
a
fed 100
were
we
n
place
energy to do the lems. There
mechanical
100
of this
,-a!
AahI lJ,,t
thi
emmkable
hit
revolution
hat
has
taken
might
is
work, the American farmer makes
'Ure
very
fed
were
their ancestors
man
modern farm equipment Instead
!?i*
them.
it
as
_
greatest rhazards
period;
Kr>fVv
yeNowa°when
As
ou
per
through
im-
Asis?
high production
power
population
same
much better both from the standi'
me
is
total
point of variety and quantity than
High Production Per
answer
time
relatively small group posed |the
greatest labor requirefarmers feeds a. nation which
merits
and
also
contained
the
by some 500% in the
Moreover, it feeds
Farm Worker
The
harvest
nnwp„
fashi0ned
great
...-j,
{■lv,vv"'6U.
nrn(Jrp„.
pra
lantic
seaboard
on
the South At-
has
been
espe-
Volume 177
Number 5206...The Commercial and
Financial Chronicle
(1337)
daily
marked, since
the
end
of
equipment
California:
World War II.
Department of Agriculture
The
-
and
machine
161
hours
picking.
with
Over 25,000 dealers and their em¬
ployees are engaged in the highly
one-
mule
row
equipment and hand
statistics show that in 1925 there picking, only 38 hours with 4-row
tractor
were 550,000 tractors on farms in
equipment and machine
the United States. Ten years later picking.
in 1935 this had increased to 1,The
last ten
have
years
In 1945 it had more than
doubled and had reached 2,425,000.
050,000.
the
seen
introduction
and
essential
service
machines
to
from
the farm
of
and, if they offer to buy, he
into business.
Even during
moving farm pression periods
many
the
manufacturer
started in this
user.
The
Mechanization of
agriculture, to¬
gether with industry, enables our
also
economy to support a
tional population—in
spread
growing
in
in
more
of
American
the
than
(Special to The Financial
Chronicle)
power
agriculture
ber
Refinements
mules dropped
and
horses
of
ued to take place.
about
from
22,000,000 in 1925 to
in 1950. It is cur¬
rently estimated that for the first
great
about 7,500,000
mules
of
number
the
time
horses
and
farms is fewer than the
on
To
the
give
you
effect
a
this
of
food
supplies, the Department of
Agriculture
has
estimated
that
from
1918, the
in which the
horse and mule population was at
year
the
which
flexible
more
sions and other
the
of
use
most
widespread, both for the
control
andr
land for production
veloped equipment in such a way
that today a farmer who wishes
This
human
factor
one
consumption.
alone
is
believed
to
account for more than 30% of
the total increase in food supplies
during this period.
.
tractor with rub¬
a
follow
tion
ber
do
significant
develop¬
early 1930's was the
Small combine* first introduced in
1932
as
ment
of
the
the result of the develop¬
the small tractor, which
naturally
with
the
led
small
experimentation
take-off
power
unassisted
tractor.
to
machines
operated
and
by
handled
by the operator of the
One of the
popularity
of
for the
reasons
the
combine
is
its
enormous
versatility. Aside from
harvesting such grain crops as
wheat and oats, combines are now
used
to
harvest
than
more
100
including soy beans, clover,
edible beans, buckwheat, flax, and
peas, and
today they have vir¬
crops,
tually eliminated the grain binder
from the
scene.
The period of the
1940's, espe¬
cially the years since 1945 when
World
War
II
remarkable
developments,
chines
ended, has
series
both
in
and
of
seen
a
technical
in
new
ma¬
refinements of
ex¬
isting machines. Perhaps the most
remarkable of these
machines
new
is the mechanical cotton picker. It
was first announced as a commer¬
cially practical machine in 1942,
although volume production had
to
wait
until
successful
machine
after
problems
The
war.
of
this
than 40
more
intensive
experimentation.
jor
the
development
came
of
years
after
research
and
Some of the
involved
were
ma¬
the
necessity for picking opened bolls
without damaging either the un¬
opened
bolls
down
and
of
These
the
resultant
machine
problems
picked
have
successfully solved.
for a cotton picker
cause
almost
all
grading
now
The
was
other
cotton.
been
demand
great
be¬
operations
and
most-
difficult
hand
labor, while at the same
time the wartime migration of cot¬
ton workers to the north, a
process
which
rate
has
gressively
an
idea
sible
continued
a
by
the
and
To
high
pro¬
give
you
savings made
pos¬
scarcer.
of the
picker
at
since, made labor
ever
mechanical
full
cotton
cotton
by
methods
areas:
139
hand
in
In
hours
two
the
and
machine
major
Mississippi
with
one-row
cotton
Delta.
mule
.equipment and hand picking, only
31 ^ hours with two-row tractor
have
never
in
land
a
idea, interests his neighbors in it hearts
been
possible
except
corn
crops
the
and hands of
minds
men are
and
free.
carry
&
Company, 2587 East
REVENUE
Gross
104,
extent
fbr
chemical
and
great
are.
the
After
of
last
look
we
in
tion
-
-
farm
Jen
research
ari'J
desii%
planting
mission
at
OF
ANNUAL
years,
I
think
engineering
improve.
uj^lfew, if
families
REPORT
-
common
$26,320,-.
sold for
$18,540,-
imately $40,000,000 of addi¬
1952
new
capital will be
re¬
quired in 1953.
the
to
letter
..
."In these letters in
previous years,
the destructive forces which
inappropriate to recall
of them
some
we
demand
...
consumer
by
war
States
enormous
not
public
PLANT
as
.
.
.
record
power
...;
government and proportionate loss of
•
"These
which
We
to '
shackles
upon
(6) the
expect
no
sudden change
nor
are
these
ating
needed
of
our
us.
GENERATION
Total output was 9,461
price of freedom."
a
the
to
develop
society and
Of this total,
President
CONDENSED
by steam plants.
December 35, *952
industry is in itself
an im¬
national
175,000 direct employees, but also
for many other
thousands who
supply and transport the coal and
needed,J;o make steel used
manufacturers
of
complete
suppliers.
,
,
,
+
'
T
liabilities.
Stated Capitol and Surplus
<
Investments and Other Asset*
^
Curr«nf AksetS
<
If fiot only provides a
for"the families of some
their
1951.
was gen¬
CONSOLIDATED SALANCE SHEET
Assets
SlectriC Rtent
our
31.2%
million,
other
econ¬
service industries.
of
erated
over
man¬
manufacturing,
business,
professions, if transportation and
segment
for
forces
still with
commission, remain the unalterable
omy:
and
scheduled
kilowatt-hours, 5%
mechanizati6rThas freed
power
is
willingness to bear the penal¬
By enabllfig" 15% of our fork¬
ing force to produce the food and
fiber
for
thjp other 85%, farm
phases
plant
initial operation in
April.
miraculous deliverance. Vigilance,
the patience and
courage to face reality, and
ties for our past sins of omission and
new
Etiwanda steam electric
gener¬
grow¬
self-reliance; (7)
the freedom of the individual and
already have seriously impaired the free market,
can
$705,603,-
923 at the year end. The
'social gains and reforms'.
as
total of
year, to a
through the disintegration of human
from the people to government,
a
$60,905,084 during the
the impairment of the
those between employer and employee
upon
INVESTMENT
Investment in plant increased
the mistaken identification of 'redistribution of
wealth', and of transfers of
our
truly
the
and defense spending, and by unsound extension of
credit... for nonproductive
purposes; (5)
ing reliance
indus¬
effect
them
I have directed
operation, and it is
balanced overexpansion of
physical plant resulting from the stimulation of
skill,
and
in
nonproductive purposes, with its effect upon the inordinate
expansion of both public and private expenditures; (2) the
crushing tax
burden; (3) the serious impairment of the value of the dollar; (4) the un¬
relations, such
any,
were
follows: (1)
as
debt incurred for
foundation of American
strength
enabling
United
president's
plenty.
machines,
sold for
were
tional
just
drudgery and have
brought better living to American
ore
the
000 in January 1953.
Approx¬
attention
eliminated
by
$16,-
with
December 16th.
on
were
shares
TH
coop¬
equipment
economy
economy.
livelihood
filed
000 in April 1952, and 500,000
HIGHLIGHTS
the devel¬
sucj^ far-reaching
national
portant
was
800,000 shares of
stock
and
way of life as the manufacture of
farm equipment. Its
products have
The
increase of
an
FINANCING
Summary
the
record
applica¬
an
need
to
i-fsrJk
of
for
000,000
.
confidently that these
problems wjjl be solved because
of
the industry's
aggressiveness,
farm
year
California Public Utilities Com¬
say
sum
thirty-one
a
of rate reductions
equipment engi¬
agricultural scientists.
Yet, when
our
com¬
farm
and
tries have
all
preferred
RATES
problems which will
of
on
share
pared with $2.81 in 1951.
handling for¬
eration
its
after
stock
common
our enor¬
thefpontinued close
the
per
of
and preference dividends,
farm
methods
opments
$17,962,867,
~
been tried
require
neers
common were
equivalent to $3.21
While
fertility by the
soil conditioners,
fertilizers, and by dif¬
cropping,
6.6% over1951, Net income
Jo, better retain nutri¬
overall
ferent
$127,270,-
was
increase of $7,895,478
few crops
a
vegetables.
:,crop
AND
unsolved
some
application fSpt
To
55th Street.
*
equipment
fair that I
only
of
revenue
an
,
Deferred Charges
Capital Stock,Expense
-
TOUl ASSETS
/
„
,
,
,
,
/
,
,
•
$>,038,440
$artded Indebtedness
\
-
.
'26WWJM
,
47,833,$99
Current liabilities
V9W 4
.
,
,
'
>
■
Deprecfation Reserve
^
Other Reserves and liabilities
J
j
'
,
$3 MW&m
<
■
'•
'
.TOTAt. UA*fUTIE$
.
;
$769,094,042
I
SOUTHERN
CALIFORNIA EDISON COMPANY
I
Elmer
McGhee
was.$23,970,515 and earnings
on.
about the
1
Gatch
connected with Investment
CLEVELAND, Ohio
Headen, Jr. is now with
tious
elements.
The control of
pests by thejcorrect application of
insecticides*, and the maintenance
and
M.
—
where
terracing
ai$ in limited use, there
much,to be done to develop
mous
can
now
charges, -including
much
for new methods of
in
Chronicle)
EXPENSES
activities
economical,harvesting of
of
Financial
(Special to The Financial Chronicle)
farm
successful^ harvester for sugar
cane, the world's largest crop in
terms of tonnage. There are
problems which peed attention in the
age
The
Joins McGhee & Co.
pride, remembering that it could
a
mechanization,
government experimental stations
have made these estimates of time
required to produce an acre of
an
for
Service Corporation of Denver.
some
is still
land
of
so
the farm
considerable
any
make
amounts
or
out
to
Problems
Except for
harvesting
mechanized.
vast
the
various machines have
in the production of
cotton, except
the harvesting, had
already been
Harvesting required
idea
-is
been -possible
the
or
(Special
potatoes and beans, it has
to. mechanize
as
not
He
regular
of
mention
problems.
plant itself,
and the problems of leaf stains or
trash
of-
industry, it" is
to
for
Unsolved
Having said
such
need
want to
may
successes
should
little
conservation
Some
of
new
manager
& Co.
GERING, Neb.—Neil
and
or
other
all tractors and most farm imple¬
ments are rubber tired.
Another
business
Fresno
was
Henry Helser
With Investment Service
conserva¬
equipment.
his
equipment^jhost
or
soil
has
special
with
tires, instead of steel wheels
with lugs, and today practically
ment
best
practices
which he
"-I
the
expensive
can
The year 1933 also saw the first
introduction of
to
J.
of
trailing imple¬
Concurrently with the ris¬
ing interest in soil; conservation,
manufacturers have altered or de'r.
for
thereto
take justifiable
can
B.
associated
control
resulted in the
than 55,000,000
of crop
a
Somebody tries
industry
Sydonia
—
become
formerly
with
Merrill
Lync^
Pierce, Fenner & Beane and prior
regulation of tractor
implements and for re¬
mounted
mals by tractors
release of more
food
ment
manufacturers
result of
a
invention.
has
power
great
industrial
marketing.
or
specialty
as
our
Calif.
has
century is With Schwabacher &
Co.
2048
far-reaching Kern Street. Mrs.
Masterson was
progress. For this mir¬
specialty farmers,
requires special skills acle of America, the farm equip¬
manufacturing
start
improvements, and
hydraulic
become
mote
in
possible
for
some
Many
transmis¬
ments.
of
and
can
its peak, the displacement of ani¬
acres
intended
and
speed
implements
used in limited
to meet local needs, some is
areas
Masterson
manpower from the farm to make
this equipment is
contin¬
be attached or detached. Tractors
themselves Show increased horse¬
power,
measurement of
change on our
also
There has been
in
progress
with
ease
number of tractors.
-
have
FRESNO,
a
of such
major machines as the
contrast to transformations in human
By 1950 it had climbed to 3,800,- sugar beet
history.
harvester, field ensi¬ the situation on many parts of Farm mechanization
has
lifted
000, and at the present time it is lage
harvester, self-propelled com¬ the globe: Besides the so-called
drudgery from the backs of those
estimated that there are about 4,bines, precision planters, and that "long line" or "full line"
who
compa¬
produce our food and fiber.
500,000 tractors on farms.
wonderful work saver, the auto¬ nies, there are
literally hundreds It has brought an abundance never
As might be expected, a corre¬
matic
pick-up hay baler, which of manufacturers who perform the before
known in any land or era.
sponding reduction took place in eliminates
one
of
the
hottest, highly important service of build¬ At the same
the population of work animals,
time, it has released
hardest jobs around most farms. ing specialized machines.
Some of
horses and mules. The total num¬
Sydonia B. Masterson
With Schwabacher & Co.
manner.
methods
one
na¬
de¬
firms
new
change from hand to
little
goes
29
/
30
/
The Commercial and Financial Chronicle... Thursday, March
(1338)
tential. One of the most important
| Warns Against Shortage of Key Materials
In
address before the Bond
an
of
Club
York
New
March 3,
on
of these other factors is the high¬
way
key materials is inevitably going
create problems of inter¬
to
and access road system. You
be
should
ness
by
of
assured
its
traffic survey. You will
often that the site
by heavy traffic
a
of the
Conservation Foundation and the
national
be
told
present attitudes regarding tariff
is
surrounded
York
policies.
roads. This sounds very
Fairfield Osborn, President
New
Z
Society, called
attention to
trend
a
toward
India's
Many
in
wrong
United
States.
Osborn
Mr.
said
our
cur¬
rent
national
rate
of
raw
materials produc tion is
running
short
10%
it
whether
is
good, but
asset
an
or
a
the experts
what our population heavily by such through
would be. It was expected in the and
are
close
to
their
on
later forties that
national
would go to
we
potential
of
about roads
160,000,000 and then taper off, re¬ traffic
a
population
useless
our
reach
the
tion
producing approximately
than we consumed.
was
15%
more
"We
are
the
on
figure
earth
is some 20,000,000-odd, and that
parking areas.
figure is equivalent to two and a
The
half cities the size of Greater Lon¬
Americans,"
ences the business potential of the
"on a concept don and Greater New York, or
four cities the size of Paris and center is the physical character of
going to have an in¬
the site. The site should be in one
creasingly high standard of living, Tokyo each year. Obviously, that
tremendous, dynamic change in piece, uninterrupted by highways
but I don't think it is at all fore¬
or roads. It should be of a shape
numbers
of
people has a very
gone that we are going to accom¬
which lends itself to the planning
Mr.
are
working
as
Osborn noted,
that
we
direct
growing
shortage
of
many
effect
adequacy either in
in any
other,
the
on
or
resource
country
our
or
of
a
coordinated
of build¬
group
ings. Its soil should be of a kind
worldwide."
which makes complex foundations
or
Continued from page 24
other costly preparatory work
unnecessary.
will
tential
Financing Shopping Centers
ttfores, she drives to the rear
en¬
trance, walks in through the back
•door
and
truck
or,
the
meets
Sometimes, when the
depth, of
"flhe commercially zoned lots peruaits it, the stores are moved back
from the
highway, and a decisive
improvement takes place. Now the
*&opper can park in front of the
off
-entrance
the
street;
serves
the
front
for the customer,
entrance for service. But
this
improved version of
shopping facilities is not
satisfactory. The strips grow in
length; the shopper has to walk
«ven
#wiburban
long
*
distances
different
of
courts
have
We
now
of
area
of
be
the
a
influenced
site.
The
by the
total
land
shopping center is used
clarified
building
as
for
area
the
store
the buildings. Another portion is used
for public areas like malls, courts,
terminology. When talking about
and
of
am
facility; namely,
one
result of careful and conscientious
safety should not be restricted
to the
shopping center itself. The
streets,
veniently
disregarded
by
desirable
will
and
make
area
make
un¬
people
system
which
being
are
standable
desire
fast
makes
the
transition of traffic from the pub¬
promoted
to
make
easy
way,
promoted
are
If
site
a
money
is not large
enoughHt
will be unable to accommodate
and
many
which
sufficient number of
the
cars
heating
machinery
areas
surrounding
not
concerns
be
better
and
to
a
sup¬
business
plants elim¬
air-conditioning
in
each
individual
which
space
utilized
as
sales
can
space
eliminating vibration and the
of ugly super-structures
the roofs.
A
shopping center should have
policy concerning ; jsSjore
fronts, signs and colors in
strict
a
tyjddr
to avoid
a honky-tonk
appearance
of some individual stores to
create
overall
And
traffic
only
and
store, thus saving
an
the
managementplants. The exist¬
of such central
of
mosphere.
of
of
inates the need for the installation
consideration
a
pleasant shopping ;atr
;h it
shopping
center
should
not
the parking areas adjacent to the
only provide sufficient park¬
ing, but parking of high quality.
How important this
is, is illus¬
residential
trated
guidance,
but the
of
itself and of
appearance
the shopping center
fer
the
Landscaped buf¬
areas.
be created to protect
areas can
residential
noise,
smoke
from
areas
dis¬
shopping center
a
shopping
create. A
the
other
and
turbances which
center
which fails to consider its relation
to
surrounding
will
find
residential
itself
rounded
very
by
areas
soon
blighted
sur¬
slum
and
neighborhoods, and thus with a
greatly decreased business poten¬
tial.
Service
traffic of every type
strictly separated from
foot traffic, and from customers'
should
automobile
Tills
traffic.
be
can
delivery
roads, separate, well-screened de¬
livery courts, etc.
Distances
the
from
closest
parking lots to
store
should
be
not
too
long. Once a shopper has ar¬
rived at the center, she should be
able
to
tected
walk
from
under
rain
cover,
pro¬
and
sunshine,
shop to the other.
says
the
convenience
other, "what I hate most about
parking is the crash." Parking
stalls
should be wide
enough to
permit easy parking and the open¬
ing of car doors when packages
are^placed in the cars; the drive¬
be
of
complete.
If
it
the
is
should be generously dimen¬
and the arrangement of
ways
sioned;
parking
stalls should be at an
angle at which parking is facili¬
tated.
Many
of
judging
standards
of
a
the
as
which
important in
economic
soundness
shopping center project
may.
result
in higher capital
expendi¬
tures for the construction of
the
center. But here, just
as
in other
enterprises, the cheapest is rarely
the best.
Wayne Hummer Co.
Installs New Service
a
111.—Installation of
after-hours depositary, the first
time this innovation has been used
by
a
brokerage firm, features the
new
air-conditioned
which
Wayne
neighborhood shopping center, it
should offer complete services for
moved
daily needs. If it is
Hummer
a
the
I have mentioned
CHICAGO,
shopper, it is important that the
center
to,
the
an
Shopping Center
For
by the little conversation
overhead by the "New Yorker" in
which one lady
shopper
be
pro¬
all lic
highway system to the ^parking
over
the
country. The idea of lots feasible.
And, finally, a con¬
making high value commercial siderable
portion, about 60% of
property out of cow pastures has the
site, remains as parking area.
caught on. Because of the under¬
centers
will
accomplished by the
utility
want to live somewhere else. Such
covered walkways, sidewalks and
road
Thousands of so-called shopping
a
it
moters, is needed for a circulatory
planning.
in
convenience
from one
referring
landscaping. Another portion
of shopping
(which for the most part is con¬
Further Suggestions for Good
which is the
shopping centers, I
only to one type
centers
size
and for various purposes. Some is used
sizes
shapes between the buildings.
delivery
if she is really in bad
luck, the garbage truck.
\ •
rear
Considerations
achieved by underground
And, finally, your business po¬
the
spell the difference
are
plish it. I think that this present
*tore
profit and loss.
might
influ¬
which
factor
next
may
between
center
owned
ence
residential
A
190,000,000 by 1975.
"There
provides
the living in the residential
survey will have to prove
steady, or perhaps decline. to you that the existing through
The exact opposite is the truth,
traffic,
enlarged
by
projected
and we are headed for a popula¬
growth over the next 10 years,
tion today which is conservatively
plus the expected traffic created
to
shopping
a
best
traffic
main
estimated
which
be
pends on the health of the sur¬
rounding area. If shopping center
traffic is channelled through quiet
of by the shopping center itself, can
be carried easily by the road sys¬
today tem. The traffic survey will also
j-equirements and that in another
25 years the shortage may rise to 700,000,000 more people than there have to
give you information as
20%. He contrasted the present were at the beginning of the cen¬ to how the automobile traffic from
tury.
The
annual
rate
of
increase
situation with 1900 when this na¬
the road will be distributed to the
of
consuming
potential. In fact,
convenience and
of
degree
safety
re¬
are
traffic
site.
the
to
the
safety
on
hours,
critical
at
are
lated to business
removal, etc. In large centers this
presence
1.26%. land traffic, it might be useless to
have been the site. If the roads are taxed
of
construction
and
health of the shopping center de¬
of
increase
net
will
convenience
dis¬
is greater than that advantage depends on the type of
are running
1.36% traffic and on the type of roads.
now
compared
with If the traffic is fast-moving over¬
increase
terials
the
very
of population
of India. We
shortage of
key raw ma¬
a
Fairfield Osborn
"Our net rate of annual increase
logical
o o
relationships, and affect
sound¬
business potential, safety and con¬
venience. All matters concerning
26, 195^
district shop¬
banks
on
for
&
offices
Hummer
March
23.
&
Used
to
Co.
by
some
Co.
years,
Wayne
have installed a
ping center, it should offer com¬ special chute outside their new
plete services for weekly needs. offices on the fifth floor in the
If it is a regional shopping center, Bankers
Building, 105 West Adams
it should offer complete services
Street, which can be used on a
potential; or
for all but the most unusual needs. 24 hour basis for
there will have to be skimping on
^market to the beauty parlor or
checks, orders,
and many are
planned without
Not only should it offer one com¬ and other documents
which will
from the drugstore to the cleaner.
public space, circulatory roads,
enough thought given to them.
plete set of stores catering to go directly to the firm's vaults.
And, as such strips develop on
etc.; or multiple-deck parking will
When
those
considering
financing have to be introduced. When the
needs, but there should be In this way, security transactions
tooth sides of suburban highways,
endless traffic jam is created, shopping centers, you must apply latter is the case, high additional competition. A woman wants the can be arranged after the close of
a
set of" high perfomance stand¬
hours
ready for pro¬
costs will be incurred which can privilege of shopping—that is to business
making driving, the entering and
ards to them in order to assure
be economically justified only in say, comparing style, quality and cessing at the opening of the mar¬
leaving of parking lots, and the
the safety and soundness of your
price. There should be stores of ket the next business day. This
"crossing of streets hazardous and
exceptional cases.
investment. I will attempt to give
different sizes.
Those
shopping innovation results from a specific
•difficult.
center developers who rent only demand in the past for a service
you a review of some of these
Parking Lots
standards. They apply to large and
to the so-called triple-A tenants, of this kind. According to George
i
Planned Shopping Centers
Now a word about parking lots.
small centers; to the neighborhood
namely, chain stores, forget the E. Barnes, partner, the new serv¬
The planned shopping center
shopping center serving about ten Obviously, there is a relation be¬ need of the shopper for variety ice should have particular appeal
moves the
tween
the
size
of
a
buildings away from to
shopping and
for
services
which
twenty thousand people, to the
only for investors who" work outside
l»ublic highways. It welds them
center and the number of cars
district center serving up to 100,smaller shops can render. Only the central downtown area and
into a true center, grouping the
for which parking space should
often come into the loop district
000
a shopping center which presents
people,
and to the large
«sftores
around
a
common
area.
be provided. Many people have
after the close of business hours
a
sound
mixture of
regional shopping center serving a
large and
Here you see a mall-type center.
tried to establish a cut-and-dried
small tenants will offer variety, or on
Saturdays, Sundays, and
population of 100,000 or more.
The
buildings face each other
formula, a so-called parking ratio. interest and color.
holidays.
across
a
These
formulas
are
landscaped mall. They
misleading
*The new offices of Wayne Hum¬
Criteria for Judging Shopping
The shopping center should be
liirn their backs towards parking
and. meaningless. The number of
mer &
Co. are larger than those
Centers
attractive. A center with hand¬
areas, which are sufficiently re¬
parking stalls necessary for each
previously occupied by the firm
The
three
main
criteria
for
some buildings, landscaped
areas,
moved from the highway system
individual project will have to be
in the Bankers Building.
Among
rest benches and many types of
lo allow for an efficient circula¬ judging a shopping center project
the other interesting innovations
individually
arrived
at.
Many
are: (1) business
success;
(2)
con¬
pleasant
restaurants
will
attract
tory road system belonging to the
is a new type of customers' li¬
factors influence the relationship,
more people and will therefore do
^Shopping center. The mall is land¬ venience; (3) safety.
such as the quantity and quality
brary, which utilizes the basic
more business.
In order to judge the potential of
scaped and forms an area re¬
public means of transportation,
principles of libraries in educa¬
served for pedestrians,
A
center should
offer oppor¬ tional institutions and permits in¬
safe for business success, you have to be the income level and car-owner¬
assured
of
the
existence
of
suffi¬
tunities
for
the
children,
equipped
with
rest
development of vestors to review investment data
ship status of the people living in
business
and
civic
life
and
for away from the activity common
/benches, planted with trees. For cient
potential.
This the area, and the character and social
to
from
go
the
shouldn't
even
be thought
about,
port
•
-all service functions
rangements
are
separate
in
made;
ar¬
mapy
cases
they
move
underground
through a tunnel which serves the
basements of all stores.
If
*to
a
the
shopping
size
where
center
the
mall
should be determined by a careful
type of the stores located
and
center.
thorough ^economic
analysis,
which will analyze not only the
tributary population and its in¬
come, but the existing business
grows
competition,
would
clear picture of the net potential
to be expected.
Only when the net
become too long, other plans have
be introduced. We
might ar¬
to
business
range cross malls or, as my office
Ihas done in a number of cases,
by
jplan
a cluster-type center. Here
the store buildings cluster around
the department store like chickens
around
ihpre
a
hen. Instead of
are
a
number
one
of
mall,
thus
potential
providing
proves
a
larger
wide
margin
than
the
planned shopping center potential,
can you
be assured of taking a
a
reasonable
risk.
But the business
success
of the
center will be influenced by other
garden factors than the net business
po¬
The existence in the to all brokerage firms.
Wayne
Hummer
&
Co.
are
auditoriums, community
be stated
centers, facilities for civic clubs, members of the New York Stock
which have been built to date childrens' activities, theatres, and Exchange,
Midwest
Stock
Ex¬
have found that they have not exhibit areas will attract people change, Chicago Board of Trade,
and are associate members of the
provided sufficient parking space. to the center more often, will en¬
Stock
The best shopping center plan is courage them to stay longer, and American
Exchange.
Its
will thus make the cash registers principal offices are in Chicago,
one which provides for easily ex¬
One
in the
thing,
however, can
definitely. All centers
pandable parking
areas.
recreation.
center of
ring more often. And
the second
periods.
criteria,
which you
apply to shopping center
applications, standards which con¬
planned
I have mentioned
and
as
third
should
cern
convenience and safety. But
probably see already that
it is impossible to separate strictly
you can
A
longer with
branches
Sheboygan,
shopping
efficient
for
over
so
as
and
in
Appleton
Wisconsin.
and
Partners
center should be include Wayne Hummer,
George
to give its tenants E.
Barnes, Harry A. Baum of
economical
heating,
service
air-conditioning,
Chicago, J. William Lawlor of Ap¬
ventilation, garbage dispo^, in¬ pleton, Wisconsin, and Walter C.
cineration, street-cleaning, snow Douglas of New York City..
^
than
more
Tax Shelter for the
Family
national
the
farming. Thus, the bank reports,
average.
While Iowa and Michigan matched
the nation's rise of about 25%,
Authorities, noting tax structure's various ways of impairing
linois
and
prices
jumped
financing family security. Cite heavy tax strain on security
of family business.
Il¬
pressed less in
Farm
3%
in
values
influenced
Michigan
than
more
family. The earnings of a business flect the less favorable returns
may be conserved to allow expan¬ from dairy than from other types
sion and provide greater financial
of farming in most of the war
strength by converting a personal
and postwar years.
business into a family partnership
incorporating.
by
each
of
children
two
$100,000
part, the lesser rise in Wis¬
consin
prewar years
than
Joins Morgan & Co.
Jk\
land
values
also
(Special to The Financial Chronicl*)
LOS
ANGELES,
Wiedrick
ard
Calif.—Leoiv.
has
been
added
Co., 63£
South Spring Street, members cdC
the Los Angeles Stock Exchange.
reflects
(Special
to The Financial Chronicle)
DURHAM, N. C. — Naaman F.
Morris has rejoined Harris, Up¬
ham & Co., Trust Building.
Mr.
Morris was formerly local man¬
ager for Reynolds & Co.
Wilson, Johnson Adds
(Special
-
SAN
to
Filor, Bullard Admits
On April 1
will
Anthony ScardaviBe
a
partner, in Filor.
become
Bullard
&
New
York
New
York
Smith, 39 Broadway.
City, members of the
Stock Exchange.
(
The Financial Chronicle)
FRANCISCO,
Two With Hall & Hall
Calif.—
(Special to The Financial Chronicle)
Arthur S. Jandrey has become af¬
filiated with Wilson, Johnson &
Higgins, 300 Montgomery Street,
father can the
greater stability of dairy in¬ members of the San Francisco
security by
come in contrast to other types of
Stock Exchange.
over
a
20-year
partnership interest,
increase the
family
over
one-third
a
In
giving
By
de¬
to the staff of Morgan &
Family security and the secu¬ Tax Strain on Family Business
those of other Midwest states by
The security of the family busi¬ city workers' purchases of small
rity of family owned business have
beei> vastly undermined by the ness is under the same heavy tax farms for
country residences. Wis¬
Federal tax structure, according strain as the personal security of
consin values, the bank states, re¬
the
individual members
of the
or
was
Rejoins Harris, Upham
land
been
land
land values in other district states.
Wisconsin
17% since
mid-1950.
have
farm
Wisconsin
land
farm
Indiana
32%.
land values rose only
obstacles
saving for future, maintain there are ways to reduce
to
(1339)
Number 5206... The Commercial and Financial Chronicle
Volume 177
FRESNO, Calif.—Jens L. Peter¬
and Carl Steinhauer have be¬
sen
a
associated with Hall &
come
Bank of America
Hall.
Building.
period.
When
owned
individually
an
1
small business begins to earn $12,000
a
year, more
money can usu¬
ally be kept at work in the busi¬
ness
by incorporating it.
If the
J.
William
Casey
J.
K.
Lasser
business
$50,000 a family
$117,000 richer over a
20-year period. There may be cur¬
rent savings of more than $8,000
a year in incorporating a business
which makes $50,000 a year before
paying a salary to a sole owner.
These
savings accumulate in a
research study, "Tax Shelter
a
for the
Family," prepared by Wil¬
Casey, New York lawyer,
and J. K. Lasser, CPA and tax
•expert.* First, showing how the
tax structure impairs ability to
save
for the future, provide for
the education of children, finance
retirement, carry adequate insur¬
ance protection, Casey and Lasser
develop ways to reduce the tax
obstacles to financing family se¬
curity.
A man who makes $28,000 has
liam J.
corporation, and may be taxed
again later on when distributed as
if
But
dividends.
the
this, $24,000
comes
alone.
If
taxes
rean
in post-Ko¬
he
is
in
a
$25,000 tax bracket, taxes will
take $408,000 of what would other¬
wise be his lifetime savings. The
post-Korea
tax
increase
alone
would take
A
$89,000.
who
man
makes
$28,000 has
$18,500 to support his family, and,
if he wants to
$5,000 on top
of this, he has to boost his income
save
a
corporation, it
a
great deal
more
A
Rentals and
of
sale
on
do
for the family's
March issue
in its
"Business
on
$52,807,000
5,548,000
1,396,000
4,167,000
2,711,000
".
Royalties
Net Income before
$100,273,000
non-recurring profit
plants
plants less applicable income taxes.,..
Profit from sale of
.♦
Net Income per
Common share before non-recurring
sale of plants and
Conditions" gives this view after
642,000
-o-
4,167,000
3,353,000
2.05
1.83
2.35
1.94
$ 42,451,000
$27,228,000
2,295,000
1,224,000
4,915,000
4,078,000
Net Income for Year
profit on
after
Preferred Dividends:
On shares outstanding at
On average
Year End
number of shares outstanding during Year
Salaries and Wages
Paid
..
Security, Annuity, Group Insurance and other
Social
benefit payments by
fringe
the Company
Taxes-Federal, State & Local (including taxes of
$197,000 on
profit from sale of plants in 1951)
Dividends:
296,000
301,000
1,319,000
994,000
stock
5%
V/2%
Current Assets at Year End
Stock
Common Stock-in cash
may
1951
1952
Sales
Preferred
Survey Indicates End
Federal Reserve Bank of Chicago
or
NEW YORK 17, N. Y.
in
earned
future.
-
nership, a limited partnership, a
joint venture. The many compli¬
cated rules developed to restrict
the operation of family partner¬
ships and the use of incorporated
pocketbooks too frequently hit
operating businesses for
which
they were not intended.
family, by a trust, a
partnership, a joint ven¬
$11,000.
is
money
•others in the
ture
inside the
Of Farm Land Boom
additional
family
grows
But if the
by
additional
an
•
Highlights of M) Operations
business
and money is kept at work
corporation, the savings
may be permanent.
Messrs. Casey and Lasser de¬
velop many variations of the ways
income backet carries a tax lien
in which a family business can be
worth $103,000 over his working
organized in a corporation, a part¬
years, assuming retirement at 65.
Of
FIFTH AVENUE
511
makes
out
comes
to
American Machine & Foundry Company
$ 51,551,000
$38,375,000
Current Liabilities at Year End
29,976,000
24,551.000
Net Current Position at Year End
21,575,000
13,824,000
1.72 to 1
1.56 to 1
Ratio Current Assets to Current
Liabilities
reports from country
bankers in Midwestern States.
studying
in
man
50%
a
income
tax
et
before-tax
...
After
from
snium on $300,000 worth of insur¬ country
bankers in Midwestern
ance
in order to carry $100,000 states, the Federal Reserve Bank
worth of net insurance protection. of Chicago foresees a slow set¬
A combination of income tax and tling of farm land prices—in the
estate tax has taken two-thirds of wake of an almost uninterrupted
must
make
a
pre-
studying
reports
the
family
insurance
security postwar rise.
which his earning power should
According
to
the
Bank,
the
buy. By having insurance carried boom in farm land values is over,
as
by one's wife, by a family trust or
reported in its monthly review,
by a family corporation, it may be "Business Conditions."
The report states that
during
possible to make the dollar avail¬
able for insurance premiums yield the closing months of 1952, selling
from two to four times
as
a
trust
and
Wisconsin
40-year old man earning while
a year to assure himself much
the
some
^obtainable
on
000 worth of
•
objective
dropped
off
as
5%.
as
may
As
capital.
(2)
worries
inflation
sliding
diminish,
father wants to de¬ buyers are slowing the flow of
velop a $10,000 fund for a child money into farm real estate as an
inflation hedge.
And with farm
over a period
of 20 years. If he
does it out of his own savings, it product prices in a steady decline,
the bank observes, the prospect
Suppose
a
will take the accumulation of
yield
he
If
on
a
5%
of a high return on farm land in¬
$20,000 worth of capital. vestment appears less promising.
does
it
through
trust for his child,
a
20-year
$8,000 worth of
•capital would do the same job.
Or,
Not all farm
fared
the
postwar
The
land, however, has
same
in
upsurge
bank
points
the
war
and
of land values.
out that land
if he wants to part with some cap¬
prices in Corn Belt and general
ital, he could do the same job by fanning areas are about dduble
their 1935-39 levels, while dairy
making a $4,000 gift directly to
and spring wheat areas rose less
the child, so that the child will
than the U. S. average of about
tiave an accumulation of $20,000 one and one-half times.
in 20 years.
♦Published
225
West
During the last
by Business Reports, Inc.,
Street, New York, N. Y.
34th
5%
Number of
hi
'iii
r*
'
16.88
14.50
■1
'
'
'
End:
75,000
75,000
-0-
6,000
Cumulative, $100 Par Value
outstanding at Year End
Average number of Common shares
r
$26,794,000
Cumulative, $100 Par Value
Total Common shares
i
$ 39,548,000
Common share outstanding at Year End....
Shares of Preferred Stock outstanding at Year
3.90%
i.
outstanding during Year
1,888,850
1,319,460
1,646,802
1,244,881
10,187
7,304
11,054
8,815
Employees at Year End
Number of Stockholders at Year End
Y
halted their climb
areas
be inflation fears, and
the income of $85,- farm product prices.
same
Book Value per
.
prices of farms in most sections of
by Illinois, Indiana, Iowa, Michigan,
Currently neither
and his wife a cash income, after farm land buyers nor sellers ap¬
taxes, of $400 a month at age 60, pear eager to do business.
at takes the income of $200,000
According to the bank, causes
•capital, yielding 5%. But by trans- of the forthcoming softening of
land
values are: (1) disappearing
ferring the saving program to a
$40,000
Net Worth at Year End
*
much in
family insurance protection as
•carrying insurance personally.
For
$20,526,000
$ 23,499,000;
bracket and 30% estate tax brack¬
half years, average
and oneland values in
Excerpts from the Chairman's Letter.
.... .:.i»
.. ...
expansion and diversification program of the American Machine & Foundry Company
is now in its fifth year. As mentioned in last year's annual report, 'AMF concluded that its
"The
profits potential could be improved through the acquisition of lines of general products to
balance its traditional group of specialized products for industrial use.' It now can be said
that this
objective is being realized. This program is far
enough advanced that the sales of
newly acquired companies were 31% of total sales for the year 1952. These companies, now
all integrated into the AMF management structure, are producing a variety of items that
give AMF identity in the consumer goods
f
field in addition to its established position in the
machinery and capital goods industries.
for military equip¬
policy—that of seeking
an important place in the Government's military procurement program. In 1952, production
in this field was expanded, and billings under government prime and sub-contracts increased
"Last year,
ment as
more
AMF
was
able to report a substantial volume of unfilled orders
tangible evidence of success in carrying out another announced
than two and one-half times, to a level which accounted
conviction of your management
part
for 51% of total sales. It is the
that the production of military' equipment will be an
integral
of the Company's business for years to come.
"Further progress was
AMF Automatic
made in the development of the Company's traditional lines. The
Pinspotter is now in commercial production, and improvements were
made
AMF industrial products. Approximately 18% of 1952 business resulted
rentals of this group of AMF products."
in other important
from sales and
Morehead Patterson
(Chairman of the Board)
two
the Seventh Reserve District rose
Copies of the 1952 Annual Report will be
furnished upon request. For copies of the report please write the
Secretary at the above address.
Y
32
(1340)
vThe Commercial and Financial
Chronicle...
Continued
jrom
instances
6
page
this.
much
An Industrial Look at Atomic Power
I
In
feel
that
others
more
we
the
do
can
problem
similar products. Whether the
is
of
severe.
isla.ct,0fy
I
Atomic Energy
such
bv
a
of
States
were
weapon
group
a
United
the
to
numbers of available bombs, upon
developed
the ability to find and reach vital
targets,
and
upon
the relative
of the Hitler
men
type.
if
Can Be
Uses
I
In
discussing the problem with
the wartime Chief of Staff, Gen-
cunty
Techniques
cann0^
0j3tain
complete secrecy by an autocratic
government within 20 years after
of
conclusion
the
World
War
bon
II.
0u-na
as
fl 3a
n
nation
and
a
oT^ur
neonle
people
field, but our progress as
pared to that of Russia. This
sole
has been
comisi the
is
perfect solution.
no
crecyimpedes our own
but it alsoimpedes thafc
Russians, a
,
of
the
tQ
individuals and
and
natural
a
want
tQ
consider
we
of
use
this
far
early stages of the development the atomic bomb could
developed.
Those responsible
would have spent their entire time
whi
be
of
we
the
Russia's
,«
.
•
have
received
,,
.
^
Unfortunately there
factor which
i.
another
is
is
that
is
tell
of
us
the
Russians
do
not
of their progress
their solutions to various
prob-
lems
any
Disclosure of information
is
goes on in that area.
Persons sympathetic to the aims
of
positions
of
influence.
main
are
not
placed in
responsibility
or
Their problem is to
alive, whereas in this
of
re-
coun-
try there has been almost maudlin
sympathy bestowed upon those
who
apparently feel that there is
something glorious about Russian
Communism.
When
we
speak of atomic bombs
always
not
are
remember
talking
of
that
normal
things.
Our goal is not to maina
small but definite
degree
of
superiority in atomic weapons,
as
tain
strive to do
we
airplanes,
weapons
to
in the case of
guns and tanks. Atomic
are
of such
power that
ahy superiority must be
great in-
in
like it
a
or
world
weap-
tool
of
force
forees, but
a
de/elo° % con
can
we
Industrial
f
cannot
goldfish bowl.
develop it in
We cannot
carry
on research
with the altruistic belief that we must
ghare th
b
With 311
And this ^ingS
to the point at issue.
achieve the necessary
Erectly
a
.
tw
wff
nnc;pri
P
,
^
.
If
men*
9
the
*1?™°
indus-
.under
secrecy^ which is imne^ds of national
hv
•+
for
progress
ot
t+
•
has
asre-
of the results that have
through the
these isotopes. I
am
use
that like
sure
vestigation, the value of such
will increase and that
edge of the human
of
as
of
other tools of scientific in-
many
all
other
as
wbll
life
and
body
animal
use
knowl-
our
whereby that plant growth
increased
and
directed
can
for
be
man, will continue to
from
the
use
of
these
One
has
only to read
the garden-supply advertisements
to
the
see
>
indications
ready.
of
this
al-
,
There
.
.
,
are
developments and
prospects of developments in in—
dustrial process control
of
radioisotooes
cally improve
by
which
means
present
our
radi—
can
indus-
trial operations
.1"
""i u?
mi^Tn
fnprpaCp
mits
an
in
in
increase
thc
the
single
a
bd: °* information and say this
much is harmless by itself. Each
bit of information is a
part of a
jigsaw puzzle which our
chemical analysis from
something
one
part in a million to one
part in a trillion or better. This
far
surpasses
such
rthe
needle
a
This
human concept
any
vrerbi;r«nding
in
of
hay stack.
a
extreme
capacity
makes
possible usable analyses in
in
puzzle
is
atomic
that
always
this
prob-
jigsaw
changing,
of
some
the
these
automotive
ticularly
with
applications
industry,
respect
par-
to
engine
under varying conditions.
wear
enemies
trying to put together
the
Puzzle °f just how the Americans
great
a
many
In
the
are
true
petroleum
radioisotopes
nection
These
can
with
otherwise
the
industry
be used in
unreachable
not
are
con-
examination
limited
of
areas,
to
the
oil
but
fields, but include as well the rewhen our enemies put it together
fining, pipeline, and other operaor put together most of it, the
tions. Radioisotopes are of value
advantage which we have enjoyed in
metallurgical research as they
since 1945, an
advantage which permit the study of conditions
has choked off the
Russian thirst
for world
conquest, will be lost.
or62oV° ad£n\Uf,A \<t%
We would all like to
atomic
power^is of minw ml™™
^rgy free for industrial use, free
Our goal must be
ad vantage^ f?r the
terrifjc development which
hundreds of
which
could
not
otherwise
be
as
effectively investigated.
Use of Waste Fission
Products
There
an
Mnrnnvor
;
rlr.
international
4.
*
•
,
typical
fm
weapons of war. We are
with the problem
of our own
vival. Atomic
always results when American industry is given a new tool or a
new field of activity. But under
de°aHnI th-n present
weapons
upon
re
«xge
in
us
mmn
upon
our
the fear of
protect
taliation
sufficient
us
is
nation.
quantities
^dividual question
standpoint
t!^1 ^1"
rity*
onlv
It
is
retaliation which
from
attack, and redependent upon the
of
the
first from the
national
secu¬
Should we or should we not
dlsclose the information that will
1
can
we
° examme each
yS
sur-
deliyered
world situation
al.
•
c
...
be necessary to
achieve
sired
result?
industrial
the
In
de-
some
has
discussion
been
about
considerable
the
use
of
cer-
+oi«
of
fuel
now
nomiCally
decade.
as
produced
-infinitesimal
consumed.
to power. What
are
it feasible?
To
Is
sound
In
for—at
First, what kind
applications
are
my
the
small
power
and
surface
vessel,
and the unmanned
>pbe
a
sterilization
S
of
drugs
without
^
and
heating.
the prospects are there
is
food
What
difficult
movable
latter
jary
0f
^e
submarine,
order
stationary
power
ot
nuclear energy
lie
..
in
it
nuclear knowledge to
be done without
can
in
sian
some
hands,
The
I do not know.
same
security
in the past. Unlike the use
radioactive isotopes which I
mentioned
earlier, most of the
sary
work involved in nuclear
power is
a nature allied with the
pro-
of
duction and
of fissionable
use
these power plants would be sufficient so that they of themselves
constitute
threat
a
to
se-
The destruction by accident or
by sabotage of such a plant might
a
large area of
the surrounding countryside. Sewell contaminate
importance
will always be of
and it is that
we*?
reason as
f?uSS^y for the
availability of highly trained nuclear engineers that makes it
rather impractical at this time to
of widespread use of the
stationary ^power plant. It
small
in
for
tbat
that
reason
I
believe
future of atomic power in
future
near
the
field
neZlect submarine
and
other
lies
of
iarge stationary plant and
the rest of my discussion.
ma-
terials in quantity. There is also
the problem that the quantities of
fissionable materials involved in
reasonably
in
neees-
of
PreC€jde "S use in stationary and particularly in
"aval vessel power plants. Therethem
will
measures
necessary as have been
of a^jjanes and ^at the
guided missiles will ^eytainly not ^be
? ™ould
of
some
getting into Rus-
way
the
of
naval
the
ves-
<.^1^
^
xh^eSe power ^pl^hts n8V6
f
For some time to come we must
j?!?™0,1?.
unsuTmountable examine constantly any power dedifficulties with respect to heat velopment, to make certain
that
transfer systems, the effect of in- we are not putting desire for
Eradiation
a
on-the
reactor
P3rts 3nd t.he hand^
highly irradiated
fuels
of
the
n0 impossible barrier to
the suecessful solution of these nroblems.
problems,
Like
all
competitive
decision
the
on
p0wer ?lantS W'U
economic
grounds.
problems
are
j believe that
be
processes
non-military
still
uncertain
they will not
vantages of nuclear
power
vessels.
are
so
standpoint of
Another
prob-
ignored by the
The American people
household
appliances
householders
appliances
in
and
until
industrial
inaUSiriai
that
are
of
use
1
pur-
barrier
can
.....
surmounted, atomic power deoimovc
velopment twill
will always
be handi'
capped.
The
all
are
barrier
familiar
is
one
with.
It
you
is
the
Paine, Webber Adds
(Special to The Financial
Chronicle)
LOS
rn
ANGELES,
,,
n
.
Calif.
,
—
ST°p
7
H.
,
Dennison has become
n
626
as-
Webber'
South
il ;Dennison
was
°^
'
formerly
with Dean Witter &
are
can
order
.
used
but
to
how
.keep their
without
the
aid of factory trained
^servicemen,
and many of us through
experience
have learned
Ca.
nTpIyh!|!
VJllpnr
and Barbour> Smlth & Co.
With Merrill Lynch Firm
proponents of atomic power is the
necessity for stand-by ^personnel,
many
lor
for
puwer
power
poses,
be
but
military capabilities that money
will not be the determining factor
naval
barrier in the
a
+
the
lem which is often
living 'above
vpinnmpnt
prove
and locations which are favorable
to the use of that power. The ad-
from
of
b*fade
UP°n
The economic
barrier to the uRimate use
of atomic power under conditions
for
faced with
atomic
atuxxxic
a
enormous
standard
the Essential military security. We
from
1 believe that there will be
the
higher
(Special to The Financial
OAKLAND.
Nankin
is
Chronicle)
Calif.—Sheldon
now
with
J.
Merrill
Lynch, Pierce, Fenner
& Beane,
1319 Franklin Street. He was for-
merly with Lawson, Levy & Wil-
liams and E. F.
Hutton
&
Com-
pany.
cheaper and more satisfactory to
buy new equipment than to attempt to have
existin&*equipment
serviced.
,
A
a
-ii+w
,X believe that
piant
-can
p0ssessed
be
of
a nuqjear power
run
any
by
men
particular
education, but Ir-do
°Perate
having
such
not
tech-
not
be-
v-jer"-
wall^wf N*?w
14
members
,
nical
Hawkes & Co. Admits
n
of
Exchange,
p0Sener
and
the
will
to
B.
York
admit
general
Eugene
Q+nX'
Stock
Albert
E.
partnership,
Weisberg
Long, and Eugenia
ritv'
Vnrk
New
M.
Frieda
Lipscomb
eVer be safe to limited Pai-top"hiP in the firm,
plant without
a
promptly
available
the
With Keller & Co
_
reaction.
made
this
powering
.
as
design, produce and operate
plants, particularly the in-
think
piant.
use
have
love of country,
a
tfie airplane, curity therefore
ofe low
they
dustrial ones, will require the dis-
curity.
guided missile,
production
and
power
would
particularly for use in chemiprocessing would-be a corol-
cal
highly radioactive materials
and because of the unknown
pub,.
this
incentive
To
large
beat
inherent" difficulties inTandling lieve that U wiU
these
their
plant,
electric
the
plantw:The
power
includes power for the
the
The
are:
stationary
plant,
power
electric
least
of power
thinking of?
we
mind they
stationary electric
+uo.
products
of
it^is usually
see
percent
be
can
almost
prospects?
lilcTf
limits of ing*
like
impor-
tance
be
of
reactor axiu
and their
xcdtiui
uicix uicniredi
chemical piutcaaprocess-
rrU-'
1
with
is
energy
mind it is. When?-It is possible
now>
but it
rfot be ecomay
tense
In chemical analvsis the
uniotie
weaPon. We cannot isolate
lems- ^
atomic
my
*>re
.
previously unsolvable problems. Many of you are familiar
their
we
the
great scientific value and
^ With one bit of information
one
cannot
develop a
new
solving
And
of
isotopes.
'
is n0 e!?c!u?h to ?ay
} e e^change of information
0
are
which
an
amount
in
medical
of
long, arduous train-
a
large numbers of people, and how
the point where
in ^e tremendous; amount
from
scien-
noticeable extent.
a
some
benefit
—
must
we
We
iatomic
learning what
world
search
been obtained
use
Un-
industry.. Russia has made it impossible to reach
any other con-
scientific
the free
to
distribution
progress
to
wants
we
use
jies
of
started
was
to
lifetime of being ready
when the time comes. Their personnel is imbued with the
increase, in the
.
purposes.
fortunately whether
accrue to
nata
that does not give out its informa-
Moreover, we must remember
that the conditions behind the
Iron
Curtain are not conducive to our
This
sisted
benefit
nof
{he
advantages
tion.
distribution
ing and
of^uch testing
will
use
attractiveness
treat-
distribution
institutions
peace-
atomic energy as the
exists today is first of all
a
tr Zrl °rnJitfon^ efhpan^^;-fitS
we
destructive
generally forgotten
clllsion;
secrecy
is
discussed, and of
when
that
for
on of war and secondly
Secrecy
.
.
^
not responsible for
would
success
the
actual
with
would like to have
industry, Russia
recommenda-
undue weight.
medical
as
-1 think most of
you are familiar
advantage to the Rus-
sians> while
m
of those
for
1946.
otherg
I
important
defending their this
force used entirely for
plans and actions, both past and
fuj
tions
used
Every hit of information which is of plant life will be tremendousmade
public; and it becomes pub-* ly enhanced. Our knowledge of
he when it becomes
widespread, plant growth and of the means
have been built, at least m.
anything like the time in which it
never
The
instinct
and far more difficult of
solution
than the purely technical
problem
0f how t0 make use of
this force,
sion in the
contemplated.
The
energy.
more
of
be
customed
radio-
now
can
not only measure the
points 0f needles, but^can measure
invisible, unfeelable entities. The
radioisotopes for medical research,
face in the in-
atomic
also
can
tbeir
have reached
be increased. Like
can
time
°£ one ki.nd
°.r a"otfer' Through closure of
of radioactive
isotopes we
the
properly
hardly been dropped
Japan before planning was in-
on
disclosing
the
scientific
knowledge which the individual
has developed. This is the
major
dustrial
can
the
measur-
with
wear<
investigations of many heretofore
unmeasurable parts br processes
uses
I
think been
itninK,
neen Woven
proven
means
itiated
of
means,
...
are some balancing
Certainly if we had
energy
the
own accomplishments. In the
.
scientific and technical world this
complete freedom of discus-
and
human
and
energy
informa-
make known to
neing
first
deed.
can
tool of industry.
its
of
be reduced to d
very short
peri0d. in general, tlp-oughout industry radioisotopes "ban be used,
Bombs had
believe
freedom
ex-
like.
aireaay
that
X-Ray it
direct
of
+;,.
true that there
was
who
be
technical
Secrecy with its resulting security rules hinders our progress in
the development of atomic weapproblem which
ons, and quite severely, too. It is
advantages.
considerably,
persons
should
all
signg
jsotopes
ment*
one's
rather than absolute nrngress
progress
that is important.
had
world
actions
of time in order to obtain
able
gomg to expand. Uur
knowledge
tific
It-is
,
..
time
free
indiscreet
loyal
scientific
the
tnat
whereby
ti0n.
ress
#il
to
that
^be
attitudes
!s
researches
nas,
a
traitors
also
Supply of Nuclear Engineers
obtain nuclear engineers of
the necessary caliber-and to have
°,th5 methods
is,
to
think, for the future
uged for tbe measurement of
very
be compared to the
microscope or
to the X-Ray, as a tool
enough
^
is
sound. In this field it
the
did
use
anticipation
long
as
energy
researcn
that, there
Se-
of
hands
teel
would
we
widely as; a
1 his
guj.
certain
from within and without The project
almost
from
is
beginning,
There
Russjan
that
used
duction
as
bitterly attacked both
so
<nto
shortened
for the secrecy which
reason
to
enabie her to initiate bomb prowithin a period of years,
progress in the atomic
own
able
1
The
sbght amounts of wear. It is no
The
situation is
entirely, difionger necessary to conduct wear ferent on
naval vessels. The men
tegtg 0f parts
over-^ong periods on board those vessels are ac-
freely
tent
considerable
from Russia gnd ^
security the major aim should not
our
is
tfut
explored and developed to the
There was certain information
which we could not hope to keep
From the standpoint of national
be
Russia
atomic
other fields of great inthat cannot now be
Atomic
possible
ajg
existence
if
so
„,
of
uses
are
terest
knowledge as
tQ Qur data and designs
We must
delay tbe passing 0f vital informa-
atomic bomb could be produced m
And
do
rules,
there
should^be earned
a
„
tne
be
mg our national security. And this
can
be done without too
rigid se-
Marshall, this was defiinitely
Jn the atomic energy field we
given as one of the ™a;jor ^eas
cannot depend upon our superior
why the work
manufacturing techniques to keep
on. To anyone with foresight there
country safe.
We certainly
was no choice. It seemed entirely
possible, almost probable, that
tnat
can
considerably expanded without seriously impair-
cannot Depend on Our Superior
eral
feel
energy
destructiveness of these bombs.
■«
..
.
...
use
sat-
more
decide, those
men
standing
by
but there is a distant
doing
possibility.
nothing day in and day out but
In many other facets of our inalways ready for the emergency
dustrial life radioisotopes can be
will be a most difficult task in-
Safely Expanded
disaster
radioisotopes will be
Thursday, March 26, 1953
the
Progress
,
,
has
been
measurement
control of thickness
and
of paper and
(Special
j.
necessary
highly
trained,
highly
educated personnel which most of
us
associate with the nuclear field.
to
BqstON
The
Financial
Mass.
Chronicle)
—" Walter
C;
strong has become affiliated with
Keller & Co., 50 State Street.
Volume 177
NumberThe Commercial and Financial Chronicle
business
next textile
the
activity over
few months," the NYU
noted.
"These include:
Private Debt Not at Dangerous Level: Nadler
Professor
the high
Consulting economist to the Hanover Bank points out growth
level
of pensonal
incomes, the
of corporate debt is accompanied by larger increases in
gross
high rate of savings, the continued
national product, fixed assets, working capital and
high level of armament spending,
profits.
high level consumption expendi¬
Despite its sharp increase since sumer goods which are purchased
tures, the expanding volume of
the end of World War II, private on the instalment plan.
automobile
production, a large
indebtedness has not reached a
"The sharp rise of home mort¬
backlog of orders, and the con¬
level dangerous to the economy, gage debt in itself need not cause
servative policies that have been
Dr. Marcus great concern.
Almost all mort¬ followed by both the consumers
Nadler, con¬ gages require amortization pay¬ and business in the current up¬
sulting
omist
econr
The
to
Hanover Bank
and
of
Professor
Finance
at
York
New
Univers i t y,
in
said
re¬
a
port
on
"The
Rise
in
Pri¬
vate Debt" is¬
sued
officers
o v e r
and
Marcus Nadler
Han-
to
custom¬
Nad¬
ers.
Dr.
ler
explained
ithe growth of corporate debt was
by
.accompanied
larger
even
in¬
in gross national product,
assets, working capital and
creases
iixed
profits.
centage
In addition, a large
of corporate capital
penditures, he said,
ifrom internal
per¬
ex¬
financed
was
sources.
"Nevertheless,
mean
this
does
not
that individual corporations
may not
have borrowed
than
more
they may be able to carry in a
period of lower business activity
.and
declining prices," Dr. Nadler
cautioned.
"The fact that longterm corporate obligations usually
carry
sinking
fund
provisions
should be a helpful factor in the
iuture and prevent serious diffi¬
culties."
indebtedness has in¬
Individual
creased
at
faster rate than that
a
of
corporations, Dr. Nadler con¬
tends, adding: "In part this re¬
flects the large volume of home
construction
and
the
increase" in
cften
rent,
and
the
are
course
of
his
the
FHA
or
guaranteed
up to a large percent¬
by the VA."
But, he pointed out, "it is quite
age
ness
and
being
the
12%
still
sales.
are
high
in
increase in mortgage de¬
an
cause
linquencies and foreclosures, and
losses
to
borrowers
Business
lenders."
and
5.5%
of
address,
2.4
times
of
activity,
be
without
much
too
Dr.
Private debt would then
be
overstimulus
an
business
increased
sales
as
cease
to
most of the
at
are
the
in the
than
As of Feb.
under
loans
a
as
bales
on
March
in New York
19,
Professor
Dr.
of
a
of
business
turns
are
excess
bined with substantial inventories
cotton,
Textile
since
the
sharp drop in raw cot¬
the mill margin
improvement in
a
year
somewhat
than
in
The margin is
ago.
favorable
more
the
;"The
current
■
opti-
There
ing.
indications
not
be
earlier.
business
create
out-
is
being
months
areas
that
support
some
%inor
rapid
expected
credit, cannot continue
indefinitely. I believe that a let
in
these
later this
year."
areas
will
New Yorfe
engage in the securities
business. Officers are W. H. Snow,
City,
to
President;
President;
T. T. Sweeny, ViceE. L. Schulze, Secre¬
Rollins & Co.,
Inc.
East Ave. Sees. Co.
Gill, Pope Co. Formed
ROCHESTER, N. Y.—W. Rich¬
ard
Avenue Securities
offices
gage
at
42
Frank I. Pope
formed the East
Thomas has
Company with
East Avenue
to en¬
in the investment business.
and Jesse S. GHZ
have formed Gill, Pope & Co.
offices
at
York City,
25
Broad
Street,
our
and
have
of
1952 Shows
by the armament program,
not been eliminated by the
change
In line with
highest volume in our history.
our
continuing policy of maintaining Tilo's position
of
leadership in the manufacture and application of asphaltic and asbestos
roofing and siding materials, no expense was
spared in product research.
Considerable effort has been devoted to the development
products and conception of colors for roofing
order to
of
new
and siding materials in
keep
pace
with trends in the housing field.
FINANCIAL NEWS — as of December 31, 1952
in
Administration," the
"It will still be
Sales reached
to
Net
to use up some of the
inventories accumulated since the
as
necessary
$11,074,631
as
compared
Earnings From Sales were $243,015
compared to $504,916 in 1951.
Net
Earnings Per Share were $.53 as
Dividends totaled $.45 per
was
3.08
share.
to
Current
1, based on
$7,531,758 and $2,446,462 respectively.
Total Assets stood at
$9,817,871
as com¬
pared to $9,089,253 in 1951.
Long Term Debt was
compared to $1.09 in 1951.
A copy
The Ratio of Current Assets to
Liabilities
$10,364,901 in 1951.
speaker warned.
V
by $709,730 over the previous year
.
by the inflationary
the past two decades
New-
rities business.
economy
policies
wills,
to engage in the secu¬
start
"The distortions introduced into
sources
& Co. Incorpo¬
with odr*-'
formed
been
in
crease
down
tha|y"some
was
plant and equipment boom, the
housing boom, and the large in-
improvement
pated a^a resuit oYf. t h e
as
However, he continued, "the
to business given by the
is to be antici-
bear
Sweeny
has
fices at 44 Wall Street,
tary and Treasurer; and Virginia
preceding the start of the Korean Campbell, Assistant Secretary. AM
were
war."
formerly officers of Blair,
Sales for 1952 increased
—the
may
watching
of weakness, start of the Korean War.
The
iare new plant and equipment exstimulus to the economy result.'jpenditures, the volume df new ing from the large number of
ihousing, private debt which has postwar marriages will be reduced
1'foeen financing part of the current in the years ahead as new family
tboom, farm income, anticipations formation declines and new hous•of the end of the expansion phase ing starts are also curtailed. The
•of the armament program, corpo- excessive dependence on private
Tate profits, less reliance upon in- debt cannot continue.
Consumer
Uation by the new Administration, credit alone expanded by $4 biland the trend of basic commodity lion since the lifting of controls
prices."
last year. Currently, the total is
"The recent expansion in auto- equal to 10% of disposable income
mobile production and the high as compared with 8.4% last spring,
production scheduled for the first The current ratio is one of the
half of this year, will contribute highest in recent years,
to a record first half, but it will
"As against these unfavorable
mean
that this industry will not developments, there are several
provide a needed offset to any re- that point to continued high level
the
• now
immediately
Snow,
rated
several
tance to cutback armament spend-
ing.
record
been
the cutback
be "In.-
Snow, Sweeny Co.
Formed in New York
Another Year of
New, incidents inevitably
an
understandable reluc-
overdone,"
a
have
that
as
adding "Business
activity
momentum of
the recent advance, but, Mveral
developments point to a Recline
which probably will begin later
this year and carry into 19£j4."
potential
subject will
telligent Investing in 1953."
mat
Backman pointed out that
Dr.
mism oyer the
further
<as
His
Firms.
in defense spending later
the future level of defense spend-
pasfc
the Association of Stock Exchange*
prices
prices has meant a significant
over
a
President ef:
should show
only minor changes in the months
ahead. Profits should be improved
ton
New
City,
and textile mill
rayon,
tion.
Co.,
and
Walter Maynard
products, indicates that there will
be no major pick-up in produc¬
inventories of
year.
the major question mark remains
level and
'Of
6
York
developments
the
warned
Dr. Backman stated
Hammill &
down¬
York
at
Universify,
Dr. Jules Backman
Shearson,
City on, on."
New
is at
Maynard,
partner eZ
outlook,
ging department store sales com¬
of
incipal
Walter
be
compared
the same
textile
the
r
ward."
Fabrics, ductions
Economics
look
P
speaker will
current
to
in; business activity later in the
Backman,
Jules
5 p.m.
higher
activity and would not
depressing force if the
University, holds, despite record level, there
.Association
Tuesday*
March
31
at.
earlier."
year
Regarding
or
Addressing the Textile
Yacht Club out
20, 1,805,000 bales were
413,000
Boston.
the
at
heWL
be
will
as
preceding tw$ years.
CCC
din¬
CIub
ment
rayon yarn
1952
of
A
meeting of the Boston Inve» "s>-
available with the
end
Backman, Prcfasscr of Economics of New York
which will lead to decline
BOSTON, Mass.—The next
ner
total
spending.
carried
Maynanl
hand despite the
cotton
total
date
all
To Hear W.
sharp li¬
since the early spring
last year.
Ample supplies of
by debt. During
three years, more than
Nadler
hardship, it is not probable that
said, has been greatly stimulated
private debt will continue to ex¬
by the sharp increase in private
pand at the rate of $30 to $35
indebtedness.
But the growth of
billion annually. This private debt
debt, particularly that of indi¬ is an
important prop support¬
viduals, cannot be maintained at
ing business today. It is a prop
the pace of recent years.
that can be very quickly pulled
"The pent-up demand for dur¬
out. I doubt whether we can con¬
able consumer goods as well as
tinue to expand credit at this rate
housing has largely been met and without running intcf trouble. The
the
percentage
of debt repay¬
only question is, when will pri¬
ment by individuals to their dis¬
vate
debt expansion be
slowed
posable income is fairly high," he
up?
said. "A reduction in the growth
"The
textile industry reached
of private indebtedness is bound
its low point last June.
It was
to affect business activity adverse¬
one of several civilian industries
ly.
The higher the debt rises
which went through a period of
the more pronounced the effect of
the decline will be. A leveling off readjustment after the early Ko¬
rean
boom
in
civilian
buying
of individual indebtedness in the
ended.
The recovery in the tex¬
immediate future, when business
tile business since last summer
activity will be high, would there¬
been
moderate.
Although
fore be a desirable development. has
trend
Jules
large
as
Large stocks of
on
with
While the
current level of private debt can
of
Doston Investment CHr
terms
spending has Dr. Backman forecasts that
evident that a decline in business
been
financed by an expansion "Under the impetus of high vol¬
activity, accompanied by an in¬ in
private debt.
In contrast, in ume economic activity, a further
crease in unemployment and de¬
the 1929 boom, private debt ex¬ modest recovery in cotton textile
clining real estate values, would
pansion was equal to only about sales is probable. However, lag¬
act
Dr.
in
the
quidation
consumption spending is
the
still
built up
liquidated,
large
were
financed
past
been
as monthly sales; in the
1951, they were three times
sales, and at the end of 1952, they
much of the current level of busi¬
by
is
raw
the
In
total
as
surge."
of
cost
have
fall of
many
insured
—are
of living ol„.a large
people. It also reflects
con¬
than
manufacturers
1951
of
sales.
Thus, in the first half of
1950, inventories were about twice
mortgages—par¬ Dr. Backman told
the group that
ticularly on those homes in which
"it is not generally realized how
the equity of the owner is small
number of
durable
charges
carrying
smaller
"the standard
of
the
ments,
ss
itmij
during the
reduced by $308,483
year.
of the Annual Report, which includes the financial
statements
of the Company, may he obtained upon request.
Tilo Roofing Company, Inc.
STRATFORD, CONNECTICUT
A
^
f
34
(1342)
Financial
Securities Salesman's Corner
nishes
the
At
discussion
table
round
a
salesmen
have
people whom they have
met before
than do
Naturally, these
ly than he has
me
never
Wnen he
to have
it
is
their
only obtains interviews
but also
it
is
moment you
will
the main
why this is
that
as
other people
pression
I
of
think
soon
they
your
as
can
see
an
in
up
think
I
more
we
than
if
front
of
believe in what
other
will
man
trying to do
lieve
that
it.
If
good job
are
and
transmitted
be¬
And if you are doubtful of
your¬
self and your mission, it will also
be
obvious
very
others
to
—
you
just can't hide things like that.
That is why a sound foundation
If you know the se¬
is essential.
curities
business
if you have
background—if you can remember
point out the pitfalls of the
past—if you can sit down with
—
and
another
and
man
help him to vis¬
ualize his investments
clear-
more
different
the title of
Others have
feel
that
them,
mailing
successfully
by security dealers
leads
at
low
obtain
to
cost.
High in-
should
letter?
A
your
mail¬
Should it
self -mailer ?
A
be
a
plain
mailing card?
*What
•
percentage
return
can
expect?
you
-
how
much
do
cannot
real.
If you have
for securing
used
never
the mails
leads, you will find in
this modest booklet all the
basic in¬
formation
Even
if you
need
are
to
an
prove
ideas
two
or
profitable.^
started.
get
expert
of promotion,
type
one
you
you
here
*
at
may
that
this
find
may
*
Send for the
charge
or
us,
fill
or
pon
booklet—There is no
obligation. Simply phone
out
and
return
the
cou¬
below.
MAILOGRAPH COMPANY, IN<\
39 Water Street
New York 4, N. Y.
BOwling Green 9-7777
Direct Mail
SINCE
Advertising
what
a
me
to
a
he
Individual
tW Your
.1
Sales
Firm
Street Address
Force."
i_'i
City & State
I
is
that
does
it
the
most
saleswork,
or
■
Dr.
pointing
presenting
statistics
the
of
current
high level of business ac¬
tivity, Mr. Turner described pres¬
conditions
ent
boom
"a
as
top
of a boom." He ascribed the high
level
of
activity to intensified
consumer demand, and finds there
are
"two
now
ment,"
tion
viz,
flies
in
the
inventory
and
on
expanded
consumer
As
to
the
trend
of
defense
said,
above
the
"out¬
peak
level
only
of ...the
year—
$13,300,000,000.
"They should reach this rate in
the last half of this
year, level off
concluded
business
that
be
in
other
of
kind
Continued
from jirst
next
more
advisable
to
telephone
sized
find
demand
growth."
to
the
upon
the
a
any
to
your
Some
state of mind and
own
territory
you
morning
are
you
working.
may just feel
a
cer¬
highly congested
a
area
and calling
upon six to
likely prospects. Another time
feel
may
your
ten
you
more like
sitting down
telephone and arranging
interviews for
several days
You may be in a rural
area, and again your own inclina¬
tion and
judgment will guide you
as
to whether or not
you should
ahead.
step into
a
telephone booth with
pocketful
some
I
of
nickels
appointments,
don't
make
and
or
your
make
go
right
calls.
mean
by this to imply
impulsiveness and intuition
that
should rule
planning,
with
or
over
one's actions in
in actual sales work
clients
there
is
stable,
productivity,
to
maintain
tween
our
own
a
about $10
if we are
year,
high level of
ployment.
>
em¬
*
-
.
vide
standard for "living wages."
Labor's remuneration should not
fall
consequently quite
unreliable—measure of all prices
a fictitious con¬
at
^
Gordon
Nielsen, Gordon
was
a
are
partners
& Co. Mr.
partner in
berg & Company.
This
is
fixing
the
that
perpetual motor
standard
in
English
Kaufmann, Als-
tice
is
major
escalator:
a
is
paid
the
of
people
spend
pay
more
offsets the
though
been
misfit.
no
charged
thus
far.
In
case, when the cost of living
clines,
stands
or
still,
repudiate
Automobile
Workers
may
turn
upward.
More
cant is the automatic
device
each
written
time
prices,
into
in¬
rising
wages
index
signifi¬
self-inflating
the
escalator:
inflate
wages
have to
be
boosted
again.
Sales
cluded
as
and
part
excises
of
are
living
in¬
costs.
(Income tax may come next.)
other
words,
the
incidence
it
idea
improvement
is
that
labor
factor.
In
of
these taxes is shifted from labor's
amount
re¬
is
en¬
the
of
trans¬
is
excludes
is
of
iis
any
amount
of
"produced"
by
man-hours
ap¬
the added product.
so-
The
labor, given this theory
wage-equity, that it does not
for
the
coal
put
men
ing
whole
miners
do—even
shift
per
profit—as
of
ask
British
when
declines.)
out¬
All
the
have to do is to avoid elevat¬
the number of man-hours by
more
feather-bedding.
The in¬
escapable conclusion appears to be
the
the
hourly
average
fact
railroad
upped
that
again,
since
despite
19b9
15Q/%, against
in
compen¬
employees
it
gross
a
formed.
Incidentally, freight
had
be
to
period
boosted
by
79%
has
bare 30%
ton-miles per¬
in
the
the
on
rates
same
average,
introduction
its
get
(How kind
of
notwithstanding the
"revolutionary"
jproduct it has
should
re¬
on
question
additional
be
called
was
labor
which
number
have pocketed should be added to
the members' base pay and wages
further by a new formula.
of
cost-cutting
to devices, the diesel engine in par¬
•
the rule applies only when ticular.
the product goes
The subsequent decision of
up;
downward
Pro¬
adjustment is not implied. Nay, fessor Paul N.
Guthrie, the Fed¬
(allegedly) produced. Needless
say,
G.M.'s
famous
bonus for
contract
implication
declines.
offers
in advance.
years
Should
is
that
the
The
labor's
company
never
earn¬
ings fall off, the unions undoubt¬
edly will treat the^ productivity
bonus
want
the
to
index.
way
ing
taxes
the
of
on
than
the
as
prac¬
Lately,
advance
trick
transportation
sation
caviar
rather
the
but
the
one
in¬
If you take it for
granted
the
should
"productivity" always rises,
Iowa,
that
that
on
Iran
much
as
And
railroad
wage
a
(C.I. O.)
ask
that
the
26-cent
hourly cost-of-living bonus they
quire the habit of breakfasting
from
any
the "standard."
clear
from
It
de¬
the unions
If people do not
tend to go up; down,
if they do save.
Should they ac¬
wages
cornflakes
"improvement"
for
answer
tended.
in
il¬
political manipulation,
such interference has
proper share in the
they did before, unless tech¬
progress
wages
produc¬
plied (or rather, paid), then labor
is evidently "entitled" to a
share
statistical
economic
an
to
open
a
in
other
mula for ever-higher pay: the
Medical Security on
living scheme.)
Presently, it tends to raise
in
portation produced by each hour
of railroad labor has
increased."
Yes, is the answer, of course. The
(The latest
the
raising
Brotherhoods
to
Sweden,
cost-
are
in¬
That
"labor-produc¬
ahead.
whether
increase
French doctors
while
has
considering "the question
General Motors most generously
provided them with another for¬
the
may
20%.
rise
the
on
spreading.
risen by
behind
price-cost-spiral in
France, Australia, etc.
of
the
as
for
running
years
raised
serves
flationary drift.
120
Broadway, New
Partners will be Paul
Gordon, member of the ex¬
change, Irvin H. Gordon, and
Edward
T.
English. * Paul
Irvin
all-in¬
an
actually paid by
than
York City.
J.
lusion and
United
to
up
keeps
Fallacies of the Escalator
The
it
clusive— and
nological
Gordon Bros, & Go.
of exist¬
Accordingly,
inflation
The escalator is
to
built
checks
office.
idea.
to cover basic items
credit
seek
by
him
was
scarcely
theory that the
rolling (as it does).
isticians
sumer.
see
the minimum
the
was
the
only, the necessities in food, hous¬
ing and clothing. Industrious stat¬
cost
or
below
the index
whether you meet your
the telephone, or call to
his home
a
ence,
ing to have the right "approach"
at
Index
practical meaning, for pol¬
icy purposes, of the consumer
price index was originally: to pro¬
wage
on
clause,
five
of
vided
Price
It
doubled
contracts with the
ported
What
The
but
man
a
tion—even
trick
Consumer
is
1939, labor
manhour
reason
formulation
be¬
and the way we work at
different
times. If you feel right and
you
are sure of
yourself, you are go¬
by
no
question
ceives governmental
blessing. The
Presidential
representative
: to
deal with fresh demands of the
shoulders
on
the
employers, in
one
say,
for example, of turn raising costs.
The
unions
attempt to improve it by in¬ contend that profits would take
cluding the cost not only of videos the beating. In
reality, the major
but also of "eating out"
(presum¬ part of the added cost goes of
with
one's
wife
or
ably
girl course at the Treasury's expense,
friend) ?
the rest at the
consumer's—pro¬
prospects,
emotional outlook
creased
without
like
have
should
the
The inherent lev¬
leading manufacturing
per
the
Using
regard, to
contribution
or
to
whatsoever.
output
leaves
must
Productivity Racket
it makes.
sense
to
without
assumption — except
on
grounds of sheer opportunism. ^
increasing
Yet, nearly two million em¬
increasing labor
is;'.essential that ployees are covered already ;by
it
a
of¬
an
output by
billion
this
py
improvement
that since
10
industries
empha¬
and,
are
productivity-escalator
otherwise, has any
recalled
titled
connection
and
close
a
be
costs in
maintain
He
•
He added that with
labor force and
$12
is
may,
or
boy on a bicycle, we must keep
going forward to remain upright. tivity"
to
what
essential
a
automatic
new
Escalators and the
and
great
actual
The
is
to
calling
prospects, it is my
deal depends is, the less
upon
that
employees
whether
defi¬
timing
a
economy
remain
increase
The
only inflation¬
discourage the former.
a
we
in
un¬
eling
of incomes
between
the
skilled and the unskilled can
only
by
that the boom
to
that
increase
obviously
come
their base pay.
old boom and that it may
difficult
of
the
case,
market politics.
same
recession, he remarked that justification
very
In any
remuneration:
the
their
year
page
appointments,
rather than going out
directly
attempt
all
of
railway
it
not
or
fering
severe
work.
respect to whether
method
re¬
outlook
the
period of
a
does appear
be
in
Actually,
disincentives
brought into operation by
nite
a
and
also, between
increase
created.
of
a
dis¬
to
physical
be not
rates,
wage
Though avoiding
prediction as to the
"it
device,
fails
presumption of the em¬
right to annually rising
ployees'
then
his
testing.
grow
spending, Dr. Turner
lays would reach a
"correct
was
out
economic
accumula¬
credit.
the
sources
oint¬
A
ary.
the
correct."
Turner
two will
or
even
its
still
of
it
actual
an
labor
result must
Council, he
spending virtually
statement
it is
crude
a
as
nominal
of
vance
had
who
man
bull's-eyes
any
his
and
is
between
and
sound
military spending ceased. He told
the savings and loan officials that
pros¬
It
"productivity"—is
the
joining
upon
defense
view
In
in
he
stir" last Sep¬
a
not-
character—promis¬
ing added hourly earnings in ad¬
Presi¬
Economic
reached
year.
believe
doing, and
personality, is the
scores
must
think
and
[
;
current
that is best suited to his
way
offices
.obligation, please send
pf your* new hooklet, "How
copy
Get Leads
affected—it
who just tries to
man
own
be
On April 1, Gordon
Bros & Co.,
members of the New York
Stock
Exchange, will be formed with
or
maintain
his
when,
perity when defense spending hits
its peak in the second half of this
room,
Forming in New York
1920
-
cost
same
to
the
taining high-level business activ¬
ity when the upward thrust of
view it is go¬
Turner
in
is
firm's earnings, etc.
its automatic
peak.
He then
forecast serious problems in main¬
ing to be in¬
creasingly dif-
save,
Mr. A. Kates, President
Mailograph Co., Inc.
*
39 Water
St., New York 4, N. Y.
Without
the
Sometimes
ahead and
these mailings cost?
C.
the
April-June quarter of last
be
a
Approximately
Robert
pressed
that
some
form
are
in
said
had
hower Admin¬
slightly
at
lists?
*What
you
sitting
annoy you.
of making you
right next to
way
tain section of
as:
•What names should
you
so¬
licit: Stockholders' lists? Names
from telephone books?
ing piece take?
may
right about going out into
It discusses such
questions
some
a
Those who
something
belief
It clearly pictures
many
pieces that have been
used
voices
tember
of
an
the< forward
recalled,
talk, that
bit of
a
President's
Eisen¬
ex¬
of
course
with
istration,
Turner
"created
re-
contained
real
(Truman's) budget message
last January," he said.
Mr.
of
advent
conveys friendship, confidence,
and good-will. This is
is
24-page hook
a
the
cult
you
and there is
warmth, and an ex¬
pectancy to their conversation that
In
have just published.
we
when
that
ways
"breezy"
make
is
true
sentence leave you with a
a
too
are
in
...
holds
of
the
not
or
of President
signed
psychologists
whether
dent's
It
by value
productivity;
indi¬
revision—certainly not
estimates
Turner, the
appointee
visers, who
in¬
a
said
or
Administration
shift.
inasmuch
tinguish
upward revision—in
last
Council
approach, which
your
C.
Economic Ad¬
the
same
end of
in
Sales Force
almost
"let down" impression.
the
How to get leads
for your
may
register with you, when you talk
with people over the
telephone.
Those who drop their voice at the
others.
to
is
Sales
cates
19,
Robert
present
the
factor.
months, and then de¬ too,
"Nothing yet done
the
Truman to the
will make the sale.
the
of
helping others,
are
he
arranging appointments over
the telephone. A voice with a
per¬
sonality behind it conveys a posi¬
tive
impression.
You
have, no
doubt, often made a metal note
we
we
that
that
are
doing—the
are
sense
a
we
that also is
we
If
coat.
reaction
determines
The
things show
our
voice
few seconds, right at the be¬
a
you
cannot hide, any¬
we
carried a sign
ways
the
on
these
The
often
ex¬
ings and convictions in your atti¬
tude.
him
tell
ginning of
inner feel¬
own
tone of
selling process, and
they claim that it is only a matter
of
meet
you
there will be
you
interview with you, or he will
phase of
will
you
March
on
several
cline gradually.
Washington
Dr.
have made studies of almost
every
If you will analyze
so,
either
not.
lost, the
or
League in
your face, your man¬
your
stantaneous.
enter the presence of
your prospect.
agree
made
are
Loan
to
able
be able to gain some benefit from
an
why they make sales.
Most sales
and
ner,
approach
for them,
reason
meets
something in
difficulty in opening new
accounts—they enjoy it! In most
which not
been
ever
for
on
meet¬
States Savings
before—you are not go¬
ing to fumble around and hesitate.
little
instances
ing of the United
them
see
anything else.
men seem
Sales Factor
a
and
told
that they would rather go out and
see
as
at the
'
1953
incentive to the individ¬
no
or
^
-H
profit sharing, since the gross in¬
come of industry, not the
net, is
the base (if any) of computing
predicts it will be difficult to maintain present
prosperity after defense spending hits peak in 2nd half of year.
the business outlook
The Right "Approach"
ual
Robert C. Turner
By JOHN DUTTON
'
'
Chronicle.. .Thursday, March 26,
Former Truman Adviser Warns of "Boom's" End
Some
-M
♦
The Commercial and
as
mgant
excuses
improvement
with
first
they now
cost-of-living
way
the
are
as
vicious
is
factor
fallacies.
not
interesting
is
In
func¬
incentive wage; it fur¬
dis¬
for
its
The Brotherhood
re¬
ceived the raise it
demanded, but
the mediator denied the
conten¬
tion of the carriers that this
estab¬
lishes
an
advance compensation
for future and therefore
unknown
productivity.
to
Then
that
argue
contract
place, it does
an
pute,
double-talk.
he
one¬
for boost¬
rates.
wage
The
the
Both
escalators,
loaded
tion
same
treat
eral mediator in the
railroad
is
ductivity
that
for
hourly raise
reason,
while
three
be
may
period
proceeded
inasmuch
and
of
assumed
4c
out
12M>c
the
as
years,
rest
is
is
of
the
pro¬
for
the
for
that
to
im-
Volume 177
Number 5206
The Commercial and Financial Chronicle
...
maximize the.dollar volume of his
the employees' living stand¬
prove
example
on
what is at
stake.
the non-operative
employees—whose pay checks fol¬
of
low the others—one may
.locomotive
he
does
fuel
in
contribute
consumption
mile?
to
per
passenger-
.
,
engineer himself:
Does he work longer or harder at
the controls of
of
exert
skill, put in
physical effort,
more
mental
or
he
Does
more
can
doctrine.
(General Motors)
Wilson
for
incur
his
productivity-escalator.
Ap¬
danger peasement should be the correct
to life and health? The answer is
word for that; and
appeasement
no; nay. technical progress light¬ is
always due to "glib, lax, easily
greater discomfort
the
ens
den
the
on
labor's
operators.
contribution
this
to
prog¬
comment
ative
Eden's
on
last
Built-in Monstrosities
Witness the Automobile "
—peace.
productivity escalator is
a
Workers'
for
claim
fresh
a
raise
collection of
statistical, economic, of the annual raise: to boost the.
political and ethical monstrosities. hourly pay increase from.4c to.5c,
General Motors has not derived notwithstanding the fact that their
its rate from the company's own, contract is,, three years from ma¬
bujt from the national (long-run) turity.:- And they do not even try
reporting
year,
made
Gas
&
900
remarkable earnings
a
share for 1952 compared
a
1951, in which year it encountered a severe drought.
The company's earnings position was greatly strengthened in 1952
by (1). additional steam capacity; (2) reduction in contract sales
of hydro power; (3) a rate increase, and (4) initial progress in set¬
ting up the new subsidiary, South Carolina Generating Company,
designed to furnish part of the electric energy requirements for
the
billion
$1.5
Atomic
Hydrogen
plant
Bomb
built for the
being
now
Energy Commission by duPont.
President
McMeekin, in
$1.07
1953
1954_
1.62
1955___
1.60
R.
&
Co.,
Sutter St.,
Manager of
as
the
corporate
trading
de¬
partment. Mr.
Belknap
wa,s
formerly
Manager
the
e
of
trading
artment
p
the
for
New
York office of
Walston
&
Co., and prior
thereto
figures for 1954 do not include a normal accrual
(due to a carry-over deduction); and if
estimated that
earnings might be reduced to around $1.45 a share.
However, for
1955 the forecast seems to be a regular tax basis.
income taxes
had
William
Belknap
associ¬
been
The estimated
of Federal
Ill
d
recent talk before the New York
a
Society of Security Analysts, presented a booklet containing the
following forecast of earnings:
recent
every
The
"comeback"
Electric
with 520 in
and
is
resist
Carolina
become asso¬
with
William
Staats
South
-
perilously smugActually, assumptions,('quoting a Conserv¬
complacent
negative: the Brotherhoods surrender to Egypt's General Ne~
major technological guib on the Sudan question. Ap¬
improvement—in order to black¬ peasement is. surrender to an ex¬
mail the companies.
tortionist; it never pays the kind
of dividends the appeasers expect
ress
South Carolina Electric & Gas Co.
or more
physical and mental bur¬
Calif.—Wil¬
liam F. Belknap has
ciated
"Cooperating with the inevi¬
table," was the candid excuse of
Mr.
With Wm. R. Staals
By OWEN ELY
of
yourself-into-prosperity
diesel motor than
a
locomotive?
steam
a
power
Utility Securities
SAN FRANCISCO,
only be sustained with
the aid of trig} Keynesian spend-
theory
the
Consider
itself.
his wages.
In ultimate resort, they rely on.
the
government that must not
permit
unemployment to arise.
The
Marxians labor-productivity
purchasing
Or what
reducing
use?
labor
consumer—of
They ignore The obvious: that la¬
bor s true productivity-bonus con¬
sists in lower prices, in the rising
ask: how
is the conductor's work in clip¬
ping tickets affected by the kind
of
Public
unmindful of
occasion,
every
the
aside
Leaving
William F. Belknap
one-track
are
monopolists who raise their prices
good
a
Unions
The
sales.
ards.
The Diesel motor offers
35
(1343)
ated with that firm on the Pacific
Coast.
this year were placed on a pro forma tax basis it is
41
Rauscher, Pierce Go.
This utility company
is perhaps the only one which has had
publish three-year forecasts of earnings, with the
figures set out in considerable detail in a booklet made available
Expands Offices
the courage to
to security
panies
are
utility
com¬
Pierce
willing to mention their budgeted estimate for the
com¬
Bank
Executives of
analysts and others.
some
Texas.—Rauscher,
DALLAS,
&
Company,
Mercantile
Building, announces the
-
2Va% annual increment of output
per man-hour.
Because gross na¬
tional
product
work
per
unit, in
to justify their new de¬
by reference to productivity.
any more
mand
NOTE:'
article
this
As
goes
to
ing
but without much supporting detail; but most of them
year,
gratulated
print,
The
it.
We Jthink'
is to be con¬
its initiative in preparing and releasing these figures.
on
forecasts
take
"^nstant" dollars, allegedly has
an
risen
Labor
stock, which
unions
also the proposed
the
in
last
50
yearly
average
therefore
labor
here
to
on
is
at
years
of
rate
an
21/2%,
entitled
from
that
percentage of
hourly wage advance every year.
attorney*for the Chicago Federation of
informs me that the A. F. of L.
consider the escalators as mere
benefits," which served the pri¬
of circumventing limita¬
wage
raises while "stabiliza¬
"fringe
mary
purpose
tions
on
tion"
was
P.
enforced.—M.
the "labor productivity"
concept:
it is
first
dilettantism
to
water
such
use
the
of
over-all
figures
as the mythical G. N. P.,
approximations at best, for
guidance in a vital sphere of pub¬
single
a
at
CHICAGO, 111.—In an arrange¬
between two prominent La
Street
investment
houses
Jack
become
has
Dempsey
R.
a
applied
wage-increase,
all-around
fashion,
in
uniform
a
compatible with
diversified
duction
marketing setup?
this not the principle of a Planned
Economy
—
&
dends from
Co.,
in the midst of
free
a
enterprise System—managed
in
a
mechanical fashion bv arbitrarily
concocted index numbers?
President of
Donald E. Nichols,
Joseph
and
Emerich,
Ames,
E.
Dempsey, President of Dempsey &
retail
staff
members of
the Dempsey!: Chicago office and
six
representatives
Dempsey!
in
Danville, La Salle and Aurora, 111.,
Muscatine and Cedar Rapids, la.,
and
Dallas, Tex.
Perhaps
the
most
undesirable
of the "improvement
aspect
fac¬
tor" is that it provides a fake
tification
tices
monopolistic
jus¬
prac¬
the labor market.
on
On
for
market,
bargaining
to
its
brokers
business
wages
like
are
other
Dempsey said.
Emerich
the
of
Chicago sales
with Ames,
J.
Albert
are
Ellison,
prices. There can be no objection
Robert A. Moss, John E. Cahill,
to labor charging what the traffic
Stuart P. Williams, Miss May L.
can
bear; nor to the use of its
Hartigan, John H. Helmer, George
chief bargaining
instrument, the E.
Wright, T. Leo Reynolds and
strike
weapon.
Presently,
the
Ralph R. Warren.
unions hold the whip-hand, thanks
to public policies which
by sow¬
ing inflationary full
must
But
reap
the
tight
a
strike
employment
labor market.
the
ne^
With Fusz-Schmelzle Co.
(Special to The Financial
enters.
It
misleads
public
Oscar E.
opinion into accepting wage claims
a
spurious theory, with no
under
foundation
provides
nomic
logic
to
the
reality.
or
aureole
rational
justice
in
in
the
of
an
monopolistic
a
very
base
It
eco¬
distributive
and
of
pattern
the
(Special
to
The
Dooly Adds
Financial
E.
is
now
associated
Dooly & Co., Ingraham Build¬
resistance
price
strengthened—and
against - inflation
weakened—by escalators. And the
"leaders"
telligent
•
not
monopolists.
monopolist
the
are
adjusts
his
in¬
even
The
prices
John F. Moors of Boston
away
to
at
his
home
the age of 92.
ment
Bcs^c
&
he
was
March
ment
E.
Ernest
investment firm of
Cabot.
passed
23
at'
to
the
Moors
&
of
Robert
G.
Company
the appoint¬
Day
East
as
Texas
representative of their mu¬
nicipal bond department with
headquarters at 1819 Boldt Street,
Tyler. ■
'
>
.
.
.
Phila. Bond Club To
The amount of divi¬
preferred stock is also lower by about $124,000.
these
parent
As the
changes, the estimate net income for the
is raised from $3,563,500 to $5,370,300. In the fore¬
company
cast of
earnings for the subsidiary company, the changes are less
significant,
except
only $41,000
out
various
above,
vs.
that
Federal
income taxes
are
estimated
at
$213,300 in the original forecast, which, as pointed
low. As
seems very
a
Hear Sir Percy
result net income for South Caro¬
Company is estimated at $906,000 compared with
Bond Club of
ing
stock is
common
For 1955
$793,500.
Union
be
26,
the estimated
operating income for the parent com¬
pany
is about $1,063,000 above
taxes
for
the
subsidiary
that of 1954, but higher income
reduce its operating income
would
Percy
increased taxes of the subsidiary company, so
in
by
earnings
per
share
that allowing for the
approximately the
are
in 1954.
as
same
the
stock
stantial
of industry in South Carolina.
of
increase
in
residential
load
due
to
With Merrill
winter
sub¬
a
increasing
/
Chronicle)#-
MILWAUKEE,
Adler
Wis.
with
is
r
—
Anne V.
Merrill
Lynch,
Pierce, Fenner & Beane, 710 North
Water Street.
King Merritt Adds
(Special
ST.
The
to
Fla.—Mrs.
PETERSBURG,
Nancy
R.
Christman
with King
*
Chronicle)
Financial
is
now
af¬
Merritt & Co.,
Inc., Rutland Building.
use
The latter pro¬
ideal for developing the use of this new ap¬
Electric and others
expected to go Into volume production within a year or so.
Air-conditioning should increase residential business by an
per annum
or
year
esti¬
and TV may increase it around
•'
company's gas division
natural gas for
ing
Lynch
Financial
heating and summer cooling; the temperature
pliance, which is being produced by General
and is
to The
diversifica¬
He expects
the
TV, room air-conditioners, and the heat pump.
both
Aus¬
States.
filiated
President McMeekin in his talk stressed the rapid
tion and growth
Spender,
C.
tralian Ambassador to the United
In the consolidated column, the 1955 gain in oper¬
ating income is largely offset by heavier fixed charges and the
increase
The speaker will
League.
Sir
The 1954 consolidated balance for
forecast at $5,076,500 vs. $3,357,000 formerly.
now
—
The
Philadelphia is hav¬
Pa.
luncheon
on
Thrusday,
at 12.30 p.m. at the
a
March
(Special
the earlier forecast of
Spender
PHILADELPHIA,
expects to benefit by obtaining
Columbia, Charleston and other cities in the com¬
so.
The bus division, which contributes only about
fare and is able to break
further increase to 150 may be obtainable if necessary.
iiiiiiiiiiiiMiiiiiiiiniiniiiiii
IDAHO
Prior to his retire¬
President
Pierce
Rauscher,
also have announced
Estimated divi¬
of
even; a
wise
elasticity cf demand, so as to
in charge
Office.
Waco
Dickey and F. Glassell Elliott, Jr.
are co-Managers of the Lubbock
John F. Moors
immeasurably
the
$177,000 in income deduc¬
7% of revenues, has now obtained a 100
The Unions' monopoly power is
labor
and will be
projected
on
The
ing.
mechanism.
the
Company,
of
from $91,000 to $413,800,
up
10 million kwh.
with Oscar
now
result
Ch-onicle)
MTAM1, Fla.—Thomas E. Mattson
are
dends
mated 5 million kwh.
can
a
stepped
net reduction of about
a
tripe
weaoon
of
increaj^d from $1 million to $1,200,000.
range in the State is
on
been elected ViceRauscher, Pierce &
has
subsidiary, South Carolina Generating Com¬
only
BELLEVILLE, 111. —Oliver J.
nationally significant Ruhmann is now connected with
scale if public opinion tolerates it.
Fusz-Schmelzle & Co., 21 South
That is a political issue; that is
High Street.
where the labor-productivity docbe;used
revenue
compared with the earlier estimate.
as
vides
Ch.onicle)
company's
construction has been
on
that there is
so
about $376,000.
affiliated
now
parent
have also been
a
as
change and will continue in the
purchase and sale of businesses,
staff
est
the Midwest Stock Ex¬
on
Members
free
a
subject
specialist
and odd TOt- member dealing with
tinue
the
lina Generating
Dempsey; & Company will con¬
Trade Union Monopoly
Eubank,
President
Interest charges are somewhat higher but the credit for inter¬
Street, and
a highly
Company, said the
specialized pro¬
transfer ipvojved 9
Is
and
and
.<
ing, Lubbock. F. G. Elliott, for¬
merly a partner of Elliott &
despite increases in maintenance, depreciation and taxes,
Vice-President of Ames, Emerich
fixed
a
that
operating income is boosted about $1,306,000.
tions
rate of continuous
•
a
that
so
net
the increment. And how is
productive
numerous
''
;
•
the Lubbock National Bank Build¬
somewhat higher figure, $31,424,500 vs. $30,031,400, while the
estimate for operating expenses has been reduced about $610,000,
pany,
of
out
common
office in, the Ami¬
in
an
cable Life Building, Waco, and
a
Inc.' 105 South La Salle
trie Dempsey & Com¬
factors at play, to the one which
pany retail sales staff becoming
more often than not is
totally in¬
part of the Arties, Emerich organi¬
nocent of having- brought about
zation.
one
of
was
shares.
indicates
ment
Moreover, Salle
it is undiluted hokum—borrowed
pute the added product to
sale
recent
similar three-year forecast released about a year ago,
only $1.22 per share earn¬
ings on a consolidated basis for the year 1954, which compares with
$1.62 in the new forecast.!
A comparison of the two estimates
Dempsey Retail Staff
Joins Ames, Emerich
policy.
straight from Karl Marx!—to im¬
the
account
opening of
South Carolina officials had estimated
vague
lic and business
into
offered to stockholders on a l-for-7 basis, and
similar sales in 1954 on a l-^or-9 basis and in
1955 on a 1-for-ll basis.
Earnings are stated on shares estimated
to be outstanding at the end of each year rather than on average
In
Leaving aside the statistical fal¬
lacies of
are
loath to do any "crystal-ball gazing," as they term
the management of South Carolina Electric & Gas
Joins Waddell & Reed
(Special
to
The
LINCOLN,
Walburn
is
Waddell
&
Building.
Financial
(Special
Chronicle)
Neb. — Paulin J.
now associated
with
Reed,
Lamson Bros. & Co. Adds
Inc.,
Barclay
ST.
is
to
The
LOUIS,
now
Financial
Chronicle)
Mo.—Bert
associated
with
Collins
Lamson
& Co., Merchants Exchange
Building.
Bros.
WYOMING
COMPANY IN
iiKiiiiiiiiiimiiiiiiiifiiiiiiii
A
GROWING
iiimiiMimi
COLORADO
HEADQUARTERS
SALT
LAKE
CITY
WEST
36
(1344)
The Commercial and Financial Chronicle...
Thursday,
where in the range of 75,000-120,000 barrels daily, it is
anticipated
that
Canadian Securities
1948
Coast
terest
of
in
the
widespread in¬
western
Canadian
refineries,
developments in recent
the review and forecasts
years,
of the
situation
by the Canadian
Commerce, published re¬
cently, is of timely significance.
According to this review: "West¬
Bank of
Canada
ern
is
just
mately
three
Texas,
of
a
more
oil
times
tion
of
a
than
of
50
years
and
has
other
any
of
history
in
2,150 in all of Western Canada in
the same year, so it will be seen
surface
scratched.
out
and
the
on
in
the
car¬
and
the
technical
re¬
at
although
as
high
range
barrels.
additions
irregularity
of
major fields
the
(100
size
discovery
in
Table
No.
The
menced with Turner
years
record
com¬
Valle.y
many
followed
ago,
by
gas
of
200
million
subsequent development. This
di¬
rected
concentrated
a
search
virgin country where
"The
realization
reserves
riod of years is
regard
of
over
200
are
under
acres
well-known
Western
miles of
the
25
of
found
in
million
years
if
penetrated
1952
the
Ontario
the
saw
Great
flow
to
will
way
capacity
at
barrels
flow
soon
raise
the
Edmonton
daily
and
to
permit
of
approximately
daily at the Su¬
barrels
terminus.
to
the
•
'
of
Trade
appear
CHICAGO 4
the
at
Atlantic
adopted
Northwest
around
the
head
Lakes.
The
trade
cently
between
the
re¬
the
amendment will be effective
May
is
of the board's action
feature
the
the
possibility
base
of
broadening
of associate
by permitting
ker-dealer
membership
director of a bro¬
a
corporatioin
to
be
If
lighter gravity
crude from 21c to lO^c regardless
of
the
quantity
imported
will
prove of great benefit to Western
the
amendment
is
approved
Giles Diversification
Life Insurance
ex¬
isting tariff arrangements."
Institute
Chester Terrell With
of
Life
According
Life
well
as
the
to
Institute
diversification
yield
safety of principal is
as
ments
of
life
insurance
com¬
having 80% of the
holdings of the business.
Since
earned
the
of
total bond
basis of actual
2.74%
in
again
holdings,
Chester T. Terrell
Financial
Chronicle)
Company.
••
Mountain
Oil
Pipe
Line
v,
,
.
Financial
Chronicle)
LAUDERDALE, Fla.—
associated
DeLoca
with
has
become
Merrill
1946
to
and
2.92%
1947
and
in
200,000 barrels
British Columbia, whose
day.
requirements*
entirely
months,
by
were
imports
consumes
000 barrels
supplied
until
more
recent
than 50,-
daily, and refinery
pansion
now
planned
will
in
ex¬
progress "or
increase
,
Brinton
the
total
&
Co.,
1
Wall
New
York
City, members
New
York
Stock
admit
Joseph
member of the
considerable
the
portion was due to
cushioning effect of diversi¬
fication
of
holdings.
de
%
-
J
*,
,
-
f
.*♦>
^
•>
^
change's
of
it.
An
be held by
may
deceased
a
permit. It
that
stock¬
the Ex¬
as
Committee
may
stated
on
Admis¬
was
further
shareholder
every
in
regular member corporation
a
must be approved
tee
Under
person
the
new
be
can
than
more
by the Commit¬
Admissions.
on
a
one
amendment
no
shareholder
in
regular
associ¬
or
ate member corporation.
of
the
most
over
cases.
of
turn,
22
This
the
other
either
least
an
a
some
is credited in large
fact that when one
types
lower
a
often
improved
re¬
recorded
return
or
at
smaller rate of decline. In
years,
of
especially
course,
during the sharpest decline in in¬
terest
rates
in
the
Thirties,
declines were experienced in
categories of bond holdings.
In
recent
rate
the
years,
earned
the
on
declines
all
interest
total
individual
in
rate
went
bond
types. For
when the
govern¬
In
another,
when
municipals showed
decline, the over-all rate
utilities
showed
sharp drop in yield
Offset Declines
During the sharp decline of the
Thirties, it was found that in one
when the yield
year,
ments
went
drop in
down
over-all
on
52
govern¬
points, the
bond
yield
was
held to 26 points. In another
year,
when the yield on industrials fell
points,
clined
the
over-all
only 12
the
points.
yield
rate
One
de¬
year,
utilities
on
was
49
points, the over-all rate
declined only 19 points.
Each type of corporate bond has
had*,*its--turn -at
highest
or
near
has had
.
earnings and each
its turn
at the
lowest
or
lowest rate.
The
highest yield noted in the
period
return
a
on
drop
1946,
5.04%. That
yield.
that
2.77%
but
in
in¬
an
was
governments,
rails all showed
and
in
than
the
of
utilities
brought
when
year
other
.was
that
was
when they
1930,
a
providing the
highest rate of
in
Lowest
on
on
yield,
governments,
industrials in
that
year the large
holdings of governments resulted
in
an
increased
over-all
This
offsetting and
effect of the varying
between
an
yield;
cushioning
experience
.
types of bonds has been
important benefit for the
all
investment experience
insurance funds.
over¬
life
on
Morgan Davis Admits
Morgan Davis & Co., 60 Beaver
Street, New York City, members
of the New York Stock
will
admit
Roland
partnership
on
Exchange,
Schuppel
to
April 2.
a
rose.
fairly
Eastman, Dillon Admits
Eastman, Dillon & Co., 15 Board
Street, New York City, members*
of the New York Stock
the
will
unchanged,
ship
on
because cf increased yields, in in¬
been
with the firm for
dustrials rails and municipals.
of years.
overall rate
the
declined, the over-all
up.
both rails and
When
revealing
the
holdings" has risen, in the face of
a
Exchange, to part¬
data
municipals
was
of .the
years,
Forest
Junkin,
publishes
in
Changes
While the decline in return
persistent
Exchange, will
.
-
major
a
to
holder for such period
terest
Cushioned Annual
t
ment bonds
Street,
daily capacity of that Province to nership April 1. Mr. Junkin has
48,350 barrels. In the initial
phase been active as an individual floor
of the
pipeline operation, some- broker.
"
1
,
estate
near
instance, in one year,
yield on both utility and
Brinton Co. Admits
over
time
voting stock
the
down
type of bond showed
Merrill Lynch Co.
H.
the
annual interest
part
.
Charles DeLoca Joins
Charles
their
exception is the requirement that
when
low-point
a
of
FT.
of
shifts in proportionate investment
in different types of
bonds, but a
specializing in corporate and
municipal
The
actively engaged
are
major portion of the annual
interest rate change was due to
merly with Clair S. Hall & Com¬
to
voting
be
held beneficially
by the officers, di¬
employees of the cor¬
or
portion
cost, declined
A
(Special
the
in its business and devote
on
1950, the
included in the study.
last year
heimer and
rectors
58
1929, the rate of interest
on
from 4.72% in 1929 to
rose
bond
Oil
were
share of
one
all
of record
of
to
panies
part
transportation facilities
than
more
pro¬
corporation
a
income yield and safety of principal by
spreading of investments.
clearly shown in an analysis re¬
cently made of the bond invest¬
pany
have
may
further
while
on
Insurance, the value of in¬
vestment
The
amendment
that
Advantages in
Companies' Investments
Insurance
cushioning effects
Bache in Gincinnali
to
cor¬
on
Canadian producers under the
(Special
The
vides
an
associate
member.
The
present
constitution extends this privilege
only to executive officers.
record
poration.
sions
the annual changes were
relatively small in the majority
oil
-V*
members,
A
area
Venezuela
if
and
owner
poration who
mem¬
regu¬
exchange. The
voting stock in the
must
1, 1953.
Great
re¬
and
ducing the duty
the
agreement
concluded
States
the
and
of
the
by
beneficial
a
holder of
stock
and,
a
a
at
regular member director must be
and
for¬
as
has
director who is
One
corporation
are
which
lar member of the
privilges to its
regular mem¬
warded to the
McCormick
least
dealer
or
corpora¬
any
business
outstanding,
regular
crude
of the Williston
mate flow of
Bldg.
econom¬
in
engaged
membership
to
stock
ber firms.
E. T.
in competition with for¬
stepped up to 150,000 barrels. It City.
is, however, designed for an ulti¬ 1
Request
extend
y,
permissive in¬
bers
United
his-
being
Lynch,
Edmonton
to
Vancouver, Pierce, Fenner &
Beane, 1311 East
B. C., now well
under way with
Las Olas Boulevard. Mr. DeLoca
completion scheduled for August,
was formerly with
A. M. Kidder
1953.
Initially, the line will be
& Co. In the
able
past he was in the
to. transport
daily up to
120,000 barrels and this may be investment business in New York
*
o r
Canadian
a large-scale
duplication of
original Interprovincial line.
Tians
J. P. 0'Rourke & Co.
Board
change's
t
be available
broker
ex¬
trading.
Prior thereto
closing of navigation on the Great he was Manager of the unlisted
Lakes during the winter months. securities department for West-
per
,
the
first
Ballots
that
major importance to mar¬
keting plans is construction of the
CANADIAN
in
ically feasible to deliver Western
seaboard
"Of
OIL PRODUCER
would,
the
with
connect
at
carrying refined oils from
Sarnia jto Hamilton and Toronto.
CO. LTD.
<
to
these projects.
"It does
not
ada,
DEVELOPMENT
'
Border
of
dment
for
an¬
erect
previous paragraph, it would
further extended by the
laying of
the first, products
pipeline in Can¬
cubic
exploration
on
to
pro¬
extension will eliminate the fourto-five month interruption of de¬
liveries to Sarnia
owing to the
LLOYDM1NSTER
Available
national
Pacific
a grow¬
the
on
from
Report
have
intention
CINCINNATI,
Ohio. — Chester
Basin, par¬
T. Terrell has become associated
lying in Sas¬
katchewan and Manitoba, is also with Bache & Co., Dixie Terminal
a
factor. The Superior to Sarnia Building.
Mr. Terrell was. for¬
continues active. This
figure may
be compared with the 45
billion
barrels cumulative production of
the United States over the
past
1952
refiners
their
a
fleet
board,
general
that
Canadian
the
ticularly that
sedimentary rocks during
40
barrier,
a
300,000 bar¬
ment
ex¬
barrels
be
may
Canada's
next
of
1950
Having regard
the
authority esti¬
billion
reserves
three
nounced
of
entail
sizable
As to the future
significance of
this data, the Bank comments:
crude
were
impressive, having The possible long-range develop¬
million
mates), that
costs
tion
ing
step to¬
the 300,000 barrel
fig¬
Sarnia, envisaged as fol¬
lowing Hhe
completion
of
the
Superior-Sarnia extension, would
ploration."
"A
Ontario,
was
unanimous
govern¬
con¬
Members
regular corporate
will
constitutional
ago,
rels.
seem
to the fact that in
1952,
the year of greatest
activity, less
than 800 wildcats were drilled in
the
looked
tanker
ure
short pe¬
a
crude
utilization
adoption of
proposition.
on
President,
adoption, by the market's
indigenous
years
creased to more than
the
showing promise of further finds.
proved
the
first
a
jected peak figure of 100,000 bar¬
rels at Superior to result from the
expansion program referred to in
into
results
ward
As
mately permit the initial daily ca¬
pacity of 85,000 barrels to be in¬
re¬
on
19,
refin¬
allocated, and
wet
barrels
Exchange
March
announced
a m e n
in
the line when completed will ulti¬
con¬
and oil column indicated
the
Stock
can
McCormick, Ameri¬
area
The requirements of 30-inch
pipe
have already been
major sig¬
serves
marketing
$70 million.
nificance until early in 1952 when
the
Bonnie-Glen
Pigeon
Lake
of
are
ing facilities.
ern
pipe line from Superior to
Sarnia is projected for
completion
this year at a cost of
fields continued to be found there¬
after but none v/as of
sisting of nearly 700 feet
455,200
prairies
"A major extension of this east¬
Leduc-
Devonian D3 reef
in
perior
Woodbend, Redwater and, in 1949,
Spike.
Important
new
a
303,000
Six
building
100,000
Golden
strike in
products.
peak
a
the comparatively wide
variations in the first column of
1.
169,000
155,000
of
barrels
in the Canadian inland
has been a
contributing
factor
403,750
input
more)
plains
245,000
under
reserves
million
132,b00
market.
be expected to be erratic. The
:«nay
or.
to
the
313,791
T.
a
extensive
almost wholly deficient
Canadian
Edward
prices.)
of the Pacific Northwest States is
Superior nearly doubled to an es¬
timated 60,000 barrels
daily.
A
further expansion program now
activity
extensive
more
annual
field
present
262,963
1951—.
Lakes,
million
Until exploration
becomes
of
2,000
disturbing
287,279
357,921
ing
estimates
some
as
in¬
27,000
States, and, supported by
1,700
million barrels at the close of last
year,
an
eign crude. Canada's ultimate ob¬
pipeline, and
jective of becoming self-sufficient
Interprovincial
must
therefore be achieved by ex¬
was
completed from Edmonton to
Superior, Wisconsin. The follow¬ porting a volume sufficient to off¬
set
imports.
Its market in the
ing year the pipeline served in¬
United States seems likely even¬
termediate
refineries,
initiated
tually
to
center
mainly in the
the export of crude to the United
of Western Canada may be
serves
conservatively calculated
reflected in
134,000
223,000
the
benefits
recoverable
be
to vote
soon
lifting of controls in the United
States will
unanimous
announces
stitutional amendment in line with that of NYSE.
recent
101,000
79,709
late
accruing are invaluable in
leading to an acceleration in the
discovery rate.
proved
the
21,176
which could only be overcome
by
thus
"The
that
58,806
portation
plains
during the
past few years have added greatly
our knowledge
of the subsur¬
face,
expected
"The
221,935
particularly the refinery centre of
Sarnia. Prohibitive railway trans¬
Canadian
foothills
is
33,792
producers
barely
surveys
Consumption
"The next market toward which
The exploratory drill¬
ing and geophysical
ried
is
Edward T. McCormick
current
modern plants in that
region with
a
total daily capacity of 95,000
they
barrels. The first of these will be
depended
largely
on
imported
crude and petroleum products. By completed early in 1954 and an
1951, self-sufficiency was achieved extension of the Trans Mountain
line will be built across the Inter¬
and refining
capacity had tripled.
Nevertheless, Texas main¬
the
Potential
1950—.
oil
the
tained the number of holes drilled
iu 1952 at 17,000
compared with
that
(It
without
20,841
natural market for the
explora¬
area
day)
per
Froduction
"The
the
the
meet
in the price of Californianproduced crude, thus ensuring the
ready acceptance of Canadian oil
Production
1952—.
active
been
intensive
more
than
world.
size
State that has
production
scene
the
(Barrels
1347
sedimentary basin is approxi¬
Exchange Governing Board
Approves Corporate Membership
only serve local
supply
offshore
but
and
American Stock
West
crease
1
Canadian Crude Oil
Year
preliminary stage of exploration.
Its
Table No.
1946__.
entering the
not
the
to
shortage of crude oil in California.
95 years, or that country's 29 bil¬
lion barrels of existing reserves.
pe¬
troleum
delivered
will
markets
By WILLIAM J. McKAY
because
crude
March 26, 1953
was
one year,
held
admit John
April
.
Exchange,*
Ellis to
2.
Mr.
partner¬
Ellis
a
has.
number
(1345L.3T
Number 5206... The Commercial and Financial Chronicle
yolume 177
'
*
»
News About Banks
known
Bank
CONSOLIDATIONS
NEW
BRANCHES
NEW
OFFICERS, ETC.
Bankers
and
REVISED
T.
Officer of The Lincoln
12, 1947.
Moore
Trustee of The Bank for Sav-
President.
Fales,
ceived by the
of the
women
to
SP
months working
six
spend
announcement made
an
foy J. Wilbur Lewis, President of
Union Dime. The Union Dime, it
is
the
of
the
with
years
an
j
bank's
March
11
the New
Stephens
was
an
at
m
m
Junior Clerk
on
22
*
The Windham
of
Bank
stock
his
con
advancing
he
the
was
of $250,000,
was
Hartford-Con-
0(
Hartford>
crease its caPital from $100>000 to
«187'500 the Madison Trust Co.,
to
Highway
$25 each.
T-'eac^o $55
Reporting
?Lininad^cr?f from MadlSOn als°
•
,
®?ar(J
Directors of
Trust Co. has voted to
stock four for one and
pay a stock dividend of
25%, giving owners one new share
The
Madison
split its
then to
^
for each four new shares held,
branch.
\
T
offi
Jpr
thp
nf
T inrnln
^v-
Officer of the Lincoln SavBank, completed 25 years of
service with the bank on March
19.
The occasion was recognized
at a luncheon tendered to him by
"SaSo
ungs
the bank.
President Hooper preKane
Mr.
sented
with
a
gold
appropriately
inscribed,
Charles J.
Kipp, President and
Mr.
Erwin
Bortscheller,
Vice-
-watch,
of
President,
Lincoln's
25-Year
Club, welcomed the new member
thp
the
into
which
of
now
whom
ivas
nuarter-centurv
quarter century
has
are
47
club
ciud,
members,
retired.
Mr.
14
,
^
^0 000
of
Fph
t
/oc
to
$250 000
25)
from
*
*
The Tradesmens National Bank
Bank
and Trust Co. of Philadelphia announced on March 21 that they
had called special meetings of
their stockholders for May 25 to
vote on the proposed merger of
and Trust Co. and Land Title
Feb.
after
to
the
appointed
bank.
*
is approved,
was
Shields
&
and
Company
Richard F. Abbe
Wertheim
&
Co., and prior
thereto conducted his
ment business
invest¬
own
in New York.
a
William
Leonard Blauner Opens
been
London Manager by G. T. Gil¬
H. D. Cayley becomes In¬
spector of Branches.
Leonard Blauner is
a
engaging in
securities business from
at
444
Park
Avenue,
offices
York
New
City.
,
;
.
Title,
Morris Geller Opens
Clifton D. Bunting
ment
D.
Bunting,
invest¬
an
banker, died suddenly yes¬
terday
Wednesday,
March
18
Morris
Geller is engaging in a
securities business from offices at
175 Fifth
Philadelphia.
He
dent in the
He
the
First
was
Vice-Presi¬
a
Philadelphia office of
former
Philadelphia
Corporation.
President
of
Association
of
Security Salesmen and
of S. Morgan
YONKERS,
Goldman
rities
Boston
a
H. A. Goldman Opens
46.
was
Mr. Bunting was
a
Smith Co.,
Avenue, New York City..
in
Director
of York,
60
is
Y.
N.
—
Hortori A«
engaging in
business
from
Maple Street.
a
secu¬
offices
at
'\
Hugh Stouppe Opens
VERMILLION, Kansas —Hugh
Stouppe is engaging in a securi¬
ties
business from
offices here..
*
Co.
of
York,
ESS
Pa.
capital from $750,000
if
if
of
the
Bank
The new capital became
$300,000.
effective Feb.
18.
1953 EDITION OF
*
*
*
*
National
Bank
American
the
"SECURITY DEALERS OF NORTH AMERICA"
Baxter
consolidated
was
with
of
Bank
National
of
the Bax¬
Baxter Springs, Kansas,
28
title of
charter and
the
American
ter
THE
nrF
of
$200,000 to
from
Wis.
Janesville,
PRESS
if
National
First
on
Feb.
-m
National
Bank. Both the American National
and the Baxter National had com¬
stock of $50,000
mon
the
National
American
each before
enlarged
The
consolidation.
has
a
capital
of
$100,000, in 1,000 shares
of common stock, par $100 each,
and undivided profits of not less
stock
than
$70,000.
service
of
years
of
Bank
California
was
if
if
if
Thirty
Los
with
Angeles
recently completed by ViceReid, Long Beach
President R. A.
Office; Assistant Secretary H. F.
Curry, Real Estate Loan Depart¬
ment; Manager J. C. Ferguson,
First and Vermont Office; Assist¬
ant
Manager J. F. Swanstrom,
Fifty-Fourth and Fourth Avenue
Office; Chief Teller Warren H.
Edwards; and Gustave O. Ruiz, of
the Chief Teller's
*
At
the
Department.
*
March
meeting
of
the
Savings
Association, held in Los Angeles,
a new director was elected in the
person
Calif.
Z.
Jack
of
of
San
covering all United
arranged geographi¬
cally and alphabetically, and are comprehensively
Firm
Name
under
which
business
is
detailed:8
conducted and
date
established
Street Addresses,
including Post Office District Numbers
General Character of Business
Names of Partners or
Stock
Exchange
and
& Class of Securities Handled
Officers. Names of Department Heads
Association
Memberships
(including
N.A.S.D.)
Connections—Wire Systems
Teletype Numbers—Correspondents—Clearance Arrangements
An ALPHABETICAL
which
they
are
ROSTER of all firms showing city in
located is another valuable feature.
Bound in durable limp
fabrikoid
Anderson,
Bautista,
Mr. Anderson was his dis¬
orchardist
A 1,328 page book containing 8,000 listings
States and Canadian cities.
Listings are
Phone Numbers—Private Phone
*
board of directors of the Bank of
—^12*^
Juan
ENTER YOUR ORDER
TODAY
trict's
for the past
it is ex- litical
pected that the merger will be¬
Abbe
formerly with
the
him.
succeeed
been
'NewCity.
y,
Mr.
more
with
a
York
1,
lespie.
representative in Congress
14 years, having been
drafted by the citizens in 1938 and
running
successfully for seven
the two institutions, detailed ref- terms. In five of his campaigns he
erence to which appeared in our
qf fgb
^ page m the was elected at the primary. He
withdrew voluntarily from the po¬
j0inf announcement said that, if
plan
of
Clifton
America National Trust &
t0 $2aU,UUU.
*
has
Broad-
111
at
been
$1,000,000 by the sale of new
increase in the capital of the
First National Bank, of Penning-
Kane the
appointed Assistant Mortgage
■,
The sMeof new stock to the
amount of $50,000 has resulted m
an
m
..
„
,
since
service
appointed
Allan
o!f
newly
opened branch
stock to the amount of $250,000.
Springs
appointed
Kings
as
Bank of McKees-
Trust
&
Under
*
has
Pa.
increased its
T
.a
char g.e
their
appointed Deputy
General Manager and is succeeded
latter, effective as of the
A stock dividend of $100,000 has
opening of business Mar. 9, ac- resulted in
increasing the capital
par
Ltd.
years'
Kerr has
the
sbares
who
March 31
on
director
As of Feb. 24 the York National
Bank
with
The board also recommended to
tke stockholders that 2,500 additional shares be offered for sale
at $50 a share.
"Stockholders will vote on the
•Office,
the
original
office
of new arrangement at a meeting
Nassau National Bank, until that called for April 1.
Carroll B.
office was merged with the Peo- Merritt is President of the trust
pies Trust Office of National City, Company,
of
Mr.
of
conn#j ur,der the charter and title
0£
Exchange, in
s|:
Allan
India
50
been
Pa.
stock
if
Conn->
Co
Xrust
win,
to
County National
The
wKh
„eti»ut
west "Stock
Van¬
bank, and Norman W. Chisholm,
Deputy
General
Manager,
has
Vice-President.
*
Danielson>
common
ed
$150,000
the1'Mid¬
of
1946, has announced his intention
The First National Bank of Ir¬
City Bank of New York
purchased the stock of the Bank
df America in 1931, Mr. Stephens
•continued as Executive Officer of
-the Court and Montague Street
which
Land
of
than
The
tional
rafter
of
:!s
&
members
Co.,
Manager of the National
to retire
$25,000 and
sale of $25,000 of new stock
the
from
Y.,
*
through all commercial banking
•departments until elected Cashier
in 1925.
Upon merger with the
Bank of America in 1929, he was
•elected
Assistant Vice-President
of that institution. When the Na-
Manager
Bank
the
port, Pa.
the staff of the
National Bank,
Nassau
of
K.
General
brought about the enlarged capital.
^1? mpSprsTSTThp0 vparV this> a staff correspondent of the
Mr Steohens entered banking as Newark "Evening News" of Mar.
a
Board
T.
Baxter,
Williams
4.
Executive^
j
the
Peoples Union
The
which'?nst"
u'tion'he became
mstltution ne oecame
,
with
w
The National Bank of
President
Mr
announced,
Department,
lofktheaCboardheheldUlon
retirement,
of
Treasurer
the
meeting
associated
years
at
becote
has
Abbe
Montreal
succeeded
*
T.
a
by the New York State Banking
stationed
Trustees.
cents
$200,000, in 8,000 shares, par $25
each, was approved on Feb. 16
*
of
Board
managements
with common capital
$150,000, was placed in
voluntary liquidation on Feb. 21,
having
been
absorbed
by the
N.
Sena,
from
Hooper,
the
previously
Executive
latter.
of cording to the Mar. 16 Bulletin
the
Lincoln
Savings
Bank,
of of the Office of the Comptroller
Brooklyn, N. Y., announces the of the Currency. An item bearing
•election
of Joseph
T. Stephens, on the merger appeared in our
retired Brooklyn
commercial March 19 issue, page 1224.
banker, to membership on the
*
*
*
W„
50
As
and
Banking & Trust Co. of Mas-
sena
first
in
England and later in
France, Belgium and Germany.
John
F.
by R. G. Miller, formerly
Manager of the Ottawa branch.
Tradesmens, President; and War¬
ren
H. Woodring, Vice-President
the capital of the Mas-
in
crease
ago
for
w-
*
Richard
couver
A certificate authorizing an in-
advocate
Dime
Detachment
*
is
is
He
ago.
of the Executive Committee;
James
M.
Large, President of
Tmnnnn1
out with
Mr. de Callies, has
Union
the
Manager at Vancouver two
"I"
and
merged bank; Percy C. Madeira,
Jr., President of Land Title, Chair¬
$500,000 to $700,000.
1943-45 with the Ninth Air Force
Fmance
A
ir—i.
worked
plan
Union Dime
fceen
several
been
RldSe on
the
19)
*T
Norbeck visited banks
since
has
and
to
Abbe to Manage Brcb/[
Of Baxter, Williams
Toronto branch, he was appointed
Narberth,
York State Banking Department at Narberth, Pa., has increased
its
aPProved a certificate of increase
^ North—
—«
the capital stock of the
capital
from
$125,000
to
$175,000.
^ stock dividend of
President of the Stockholms Sparin this country
of
title
and
^reYloaf*y
of
Mr.
ay
*
o/t
advantages of an
working personnel.
With savings banks in 32 coun¬
tries, Union Dime hopes that its
xepresentative will be the first of
many such exchanges.
The plan
was
proposed by Olaf Norbeck,
bank.
Avenue
that
Chairman
^ J
effective Feb. 24 under the
charter
^understanding
and
good
will
through the exchange of students.
Business uxKaiuzciuuiis
-DUMiietsS
nave
auorganizations have
appredated
exchange
attached
was
Howard A. Loeb, Chairman of the
Board
of
Tradesmens,
will
be
been
Ser1®ecL With the Northern New
international
better
to
at
*
*
of
tive.
W
universities have con-
years
iributed
and
share, to be
paid approximately three months
after the merger becomes effec¬
The First National Bank & Trust
Union Dime. For
bank to come to
some
Broad
man
Stockholms Spar-
the staff of the
office
said
dend
r
and
Jan- 2y»
New York
savings bank to send a repre¬
sentative to a foreign country on
an
exchange basis. No date has
been set as yet for a member of
is the first
stated,
at
of the two banks will recommend
'u
5?a
Stockholm savings bank, ac-
cording to
be
Erie
new
ment
com-
President of The Linij- mana3er of Brighton
?ce'
as m°derator.
J.® ,Ji:rst meetling was held at
Beack
"York, sailed for Sweden on March
a
will
expected to be
opened in the fall. The announce¬
f at ihre
°/
Jacques de Callies, a Teller at
Dime Savings Bank, New
24
don, went to Canada in 1929 and
Street
Union
in
the
stitution
The
munities served by the bank that to the board of the combined in¬
a second series was initiated on stitution an initial
quarterly divi¬
*
*
Bank's
ported to have been so well re-
Lines, Inc.
«
Assistant General Manager at
bank's head office, Toronto.
Mr.
Gardner joined the bank in Lon¬
the
Women's Finance Forums, is re-
Mr.
Moore is President of Moore-McCormack
at
Commerce
main office of the consolidated in¬
Company.
nue, Broad and Louden Streets,
and 19 S. 52nd Street. In addition,
March
on
Savings
Lincoln
The
ings in the City of New York was
announced on March 17 by De-
Coursey
of
Bank
Vancouver, has been appointed an
Street, 320 Chest¬ branch. After serving there, at the
nut
Street,
5th
and
Chestnut head office in Toronto, and as an
Streets, 5614 Germantown Ave¬ Assistant Manager of the main
William
of
Trust
Gardner, Manager of The
Canadian
at 1528 Walnut
%
Election
Land Title
Tradesmens
as
and
Chestnut Streets with other offices
CAPITALIZATIONS
as a
K. A.
effective "during the middle
come
part of June." The merged bank,
as
previously announced, will be
scene
last fall in order to
business.
devote full time to
HERBERT D. SEIBERT & CO., INC.
New York 7, N.
25 Park Place
REctor 2-9570
Y.
38
(1346)
The Commercial and
highs of the previous week
should
THE MARKET
AND YOU
...
have
been
exceeded.
They overlook two interesting
comprising the
averages
have
Dow
brunt of the advance for
"Peace
least for
bears
it's wonderful"—at conditions
day
one
far
as
as
concerned.
were
are
right, the faith¬
the ful will continue
Mon¬
Some
day, short-term stock market pected
that
the
vparc
have
v.™,,
years
to hold.
observers
The
c
now
t
r
p
it;
h
t
s ire n g i
spreading to stocks not
sus¬
seven
o
n
the
the
in
value,
and may be offered-an
attractive exchange upon matur-
much
ity. It
has been
announced by
liy'
AL ,ia5
uee" announced
uy the
me
present Administration that they
Ohio
unio
intend ' to
was
"soft" talk
the
tried to
build character with
the World. That
market-wise)
washed
out
hope (or fear,
quickly
by the most vi¬
was
cious Red attack in Korea in
many
months and by ex-Pres¬
ident Truman's sad
"the Russians have
reminder,
kept
nnH
ana
Notes;
ring handing out its gifts until
1954, which is a more impor¬
over
Malenkov
as
tant
thedebt
risk
than
the
common,
&
non-cumlative $4 preferred
non-cumiauve
pre
the security I like Best. r ..
into
Under... the
Bond
Adjustment
goodly num- longer maturities whenever pos- Plan of 1944, Baltimore & Ohio
of new highs each day,
sib1®;
_'
'
was able to continue its junior
rnmnnrativplv fow lows
(3) Ulllted States Treasury capitalization undisturbed and at
comparatively ew
,
Eisenhower ber
influenced by Administration may be defer¬
from Russia
week-end
fund
less
Therefore, I consider Baltimore
averages, as the
..
WT
sentiment
26/4953
Security I Like Best
Jones
carried
Thursday, March
Continued from page 2
technical aspects—the leaders
By WALLACE STREETE
Financial Chronicle...
will
testily. Also, on Tuesday,
volume in the last hour and
a
These
yield
than
more
mature
and
years,
bills
within
only
and
five
the
slightly
time
same
debtedness.
certificates
road
must
to
reduce
Under
this
provide for
its
in-
plan,
the
fixed
and
politically because half when prices were forging at the Present time, and are sell- contingent interest as well as cerCongressional elections. ahead, was 740,000 shares or inS.at ™»er«obstential discounts. tain fund payments. From the reThe advantage of these securi- maining net earnings, 50% has to
This would seem to be good at the rate ox
2,225,000 lor the ties is that they offer specific be
paid into a Surplus Income
psychology and smart plan¬ full session, a better showing capital gains for a specific period Sinking Fund, the
purpose' of
ning, for the memory of man than at any time since the last °f time. Under present tax laws which is to purchase or redeem
is comparatively' short and his sizable advance on March 17;
in<f° taX °n l0nS~ fixed
£uts^ancbng
b°nd issues- If annual
term capital gains.
and
year
of the
4U
4
t
4
o
ooc
Ann
41,^
t
contingent interest pay-
wants
are
many.
Another item with
never
a
Siimmor
direct
AnfirinateH
K,se
<4') Bonds: There
"
Anticipated
q£
thege
issueg
are a number
maturing
ments fall below $22 million, then
allocations to this fund need not
within
their
The tide still appears to be five years. These offer a combinaword."
By the close bearing on an important seg¬
exceed $750,000. In
addition, until
Tuesday, the stock market ment of the market was the coming in—not in a flood, but tion of the above factors; discount, annual charges are below $20 milhad regained its composure 4c an hour rail
It may be rash to f^t vaJues> Plus a somewhat lion, all dividends paid on the
wage increase. insistently.
,,J,
better return on the longer ma- preferred and common shares
and most of Monday's losses. However, the rail
stocks, in state that new high water turities,
have
to
be
matched
by equal
Realization deepened that the the
In summary, I am
strong flush of favorable marks are imminent. There is
fully con- amounts paid into the Surplus
,
,
4~«
Western
too
to be
forces
World is not likely first
quarter
results,
rode
beguiled by words, and resolutely over this factor.
that peace talk is not to be
Consumer Survey Favorable
believed unless followed by
On the favorable side, there
positive action, such as, the
cessation
of
hostilities
in were a few surprises—unex¬
Korea and Indo-China, and/or pected in the cautious prethe
lifting of the Iron Curtain.
1953
Tax News
Ignored
Board's
an¬
nual survey
of consumers' in¬
development that could tentions showed they were
easily have been more dis¬ planning to buy more goods
turbing to stock prices than and that most of them felt
the
peace
feelers, was the they were better off than a
damper on hopes for tax re¬ year ago. (Let us hope they
A
duction
this
President
ebb
at
rriu
•
flow
and
this
time
of
4-i
•
of
*
j
in the minds
in
u
Nature
S.J
4
.
of
men
The
iJ
T4
late
for
4
°i
F
n
4
is
that
.
Income Sinking Fund. Since
adop-
Reserve
commercial loans keep expanding,
have been reduced approximately
$166 million or 25.6% with a saving in interest charges of $7.6 mil'-"
of
be invested whether it be for
n
4
w
rupted heat. Comcidentally or
not, the stock market has been
following
the
of
pattern
summer
mi
-
i
years.
There
IS
logic for this
•
many
/•'■
,
the
on
„
type of
funds
to
de-
In
other investors.
m
-
„
'
•
oppf1VIhftihfr
tain this loan- Poetically
11
j
P«rt»er,Op^^^TOde»
& Ohio
t-o^ JNew York City Broeck ceeding
■■■-:
«
'
-
-
-
Members, New -Kork-Stoek Exchange
-
•
Administration
soundness
of its
business
and
.
dence is
which could be a-threat to
the crude oil
prices. This explains
general high grade oils to lead the ad¬
this
confi¬
dissipated through
a
vance as
they did a year
However, producers with
succession of failures and dis¬
discoveries and
appointments,
not
investors
be
will
be
opportunities to
This
state
of
evidenced
looking for
buy stocks.
mind
ago.
new
special situa¬
will tions have held the
stage, and
dislodged from their
holdings on a broad scale, and
traders
often
is
traders in this
group
a
field
Market's
Technical
.
dends at this time, because
wish
to
wait
improved
our
until
we
we
have
..
Joins Waddell & Reed
to
The
DENVER
joined
Financial
Colo.—B.
the
staff
Chronicle")
C.
of
•
GilsOh
Waddell
&
Reed, Inc., U. S. National Bank
Building.
Joins
(Special
to
King Merritt,
The
Financial
Chronicle)
\.-
•
shares of the company,
simply
Tues¬
day, down only 1.81 and the
postpones the reward. As long Rails at
111.77, off .26 from
as the favorable
earnings their closings of March 17. "
trend continues and general
Sceptics may argue that the
companies and
bank
loan.
One
might thus figure that such a
transaction, plus other reductions
of
-
indebtedness
from
current
earnings, might reduce
nii
ri
a
a
1
fixed _and
contingent charges to
$23 million by next. year. V. ; / •
,
A..refunding of
-
as
outlined
the
above
RFC
would
loan
possibly
free
as
very valuable collateral such
the Baltimore waterfront
prop-
many years. A possible sale
Eastern
railroads
might
,
personal
my
Baltimdre
Ohio
&
belief
that
Railroad
Co.'s
-
ties compares
net
payments
the
Midwest
Stock
elected to member¬
With Investment Service^
■
ties
an
able
to
apply
tcr its
stock
preferred
its
and
or
not
New
shared
York
has become affiliated with
Service
Sherman
Street.
$9.2
22.2
_
6.9
15.0
by
'
19.2
27.3
-Payments toCapital & General Surplus Income
Sinklng Funds
Sinking Fund
:
(Million)
(Million)
$5.9
$1.9'
6.9
a
8.4
5.5
0.8
6.4
1954
-7.4.
7.6
1952
Cen¬
8.3
.
7.3
14.3
Earnings Per Preferred Share
(588,631 Outstanding)
>
tral Railroad Co.
-
The
more
conservative
of
the
Baltimore *& Ohio's junior securities is naturally the non-cumula¬
tive $4 preferred, currently
selling
(Special to The Financial CHR6NICLE) '*
at 47, yielding more than 8%%.
DENVER, Colo.—H. Carl A4kefe^ThCre-are 588,631 preferred shares
ment
1948
gives these securi¬
attraction
Pennsylvania
'
1952_J
earnings after interest
table:
Millibrt
;
1950____"
favorably with that
may' be
is best
1951
that in the foreseeable future the
-
this
Before Funds
1948___.™
1949___
of its competitors. The possibility
road
of
Earnings After Fixed and'
Contingent Interest but '?
1947
its jUnior s!ecuri-
for
The significance
illustrated in the following
thorough
Eastern rail systems offer remarkabJf
appreciation possibilities
It is
common
CHICAGO, 111. —The Board Of
our
288.83
of
siudy leads to the belief that the
securities Of SOme Of the leading
the outlook
Midwest Exch. Member
until a drop of 2.08
points on Governors of
financial posi¬ Monday in the
Industrials, Exchange has
at
habilitation
large
in, declining a few
pennies for each of three days
closed
foreseeable future
'°f Insurance
bppenheTmer
position has greatly
improved in receftt years and that
SARASOTA, Fla.—F. R. Tegehkamp has become affiliated with
King Merritt & Co., Inc.
years, set
trials
H.
fundamental
plant, etc., etc." Sub¬ broke the calm. But only for a ship Joshua A. Davis, Blair, Rol¬
lins & Co., Inc., New York City.
sequently the appraisal of the day... The Dow Jones Indus¬
tion,
W.
.
has made great strides. A
has
on
ac-
see
erties. In spite of 4he
high value
.of such property, much of'it-has
not
been income
producing for
Wfesterfl r
oh
to
}°/e~
substantial
a
count of the
'
growth factor of that territory and
acivantages of long haul traffic,
i_.
of the author only.]
(Special
Technically, the action of
,
exhad
Once that point is
%L®
the loan
might be re^?yi?^nt,of
undertaken
with
the
?
»
^ ^ t J °par e f
ferred
•
,
Action
this order: "We correction, which has charac¬
increase our divi¬ terized our markets for many
not
confidence
m
enable Baltimore & Ohio to ref e yxews expressed in this
ceive- sufficient funds to retire
article do not necessarily atany
enough bonds so that annual fixed
time coincide with those of the
as
n
as
especialiy -favorable and contingent charges would fall
Chronicle
They are presented as ,ariffe
Recently> however, the re- below $22 million.
'
those
day recently.
specific the stock market averages
issues. Time and
again heads during the past week, was
of corporations which are en¬
propitious. After a rise of al¬
joying a strong upward earn¬ most six points the previous
ings trend have come out with week, the pattern of gentle
will
of the
w
have had
toward
statements
dominance
factor in the minds of inves-'
non-
(even
at that time far
$80 million
valuei
would not be astonishing
4L
approach to the general reluctance of the tors and traders.
the
Until
economy.
and
To ob-
all
to be pledged. This loan has since
been reduced to $65 million: It
,
new
bor-
mortgaged property of Baltimore
•
i?
1947, Baltimore & Ohio
the 1944 Adjustment Plan
-
H. OPPENHEIMER
-
l
per annum.
of commercial rowed $80 million from the RFC
banks> corporations of all types in exchange for an equal amount
with temporary excess funds,, or of notes held by the RFC under
a
4
195407
lion
to
sec-
ondary / reserves
a
strong
rise for
remain in short-term issues,
pending
the
lininter-
•-j
Tbere;tore, 1 naturally prefer
-
mate achievements of the
charges
have decreased from
counting their tax beyond the vagaries of the
Baltimore & Ohio
?
v
;:
savings in advance.) Secre¬ weather. By late June, the in¬
$4 Non-Cumutative Preferred
substitute for the Excess Prof¬ tary of Commerce Weeks an¬
tent of Congress on
America's investment in its railimportant
its Tax, Chairman Reed nounced
general business legislation is usually well roads is larger than in any other
bowed in his efforts to force ahead of 1952 and
capital ex¬ established, businessmen can single industry. The unpopularity
of
railroad
his
securities
is
being
tax-cutting bill to the floor penditures, which had been appraise results for thefull
Slowly1© v c rof the House,
and Senator expected to decline, Were run¬
year
with
more
certainty, come.. Excel:r:ru?i
Taft said he didn't see how
ning ahead of last year. The wars are seldom started until lent; earnings /
taxes could be cut until 1954.
p
population of the country was the harvests are in—and so ..statementsdue
If the market had built its
reported as having gained on. Because of the
better-"/'managXerithopes on immediate tax cuts, 2,300,000 in one year—a lot
than-expected performance of "and dieseiiza- it/certainly did not show it. of potential customers.
the stock market this year,tion: draw inThe manner in which these
A cloud no
bigger than a the same pattern seems likely "5reas®d
announcements were
i
- tion
to this1
ignored, man's hand has appeared on to be followed, only
the sea- group. For &
was further
testimony to the the oil horizon in the form of son of bull fever
may be a 3 long time the,.
underlying faith in the ulti¬ steadily
mounting imports, little earlier, because of the securities of
year.
Eisenhower said he wanted
annual
policy for Government bonds, and
not
is fairly well
nprind
a
u
•
usually
June
weather pattern
set
blow
n
hot and cold. It
well
as
winds
not
were
vinced that .the Federal
Bank will continue its free market tion of this plan,
vear
roughly $27
equinoctial
^periods are particularly so while the business million to $24.6 million at present,
always a period of uncertainty barometer continues to rise, and Since 1941,
outstanding bonds
The
The until
pronouncements.
Federal Reserve
much
Invest-- outstanding.
In
my
opinion, this
Corporation, ^M^stock-has great appreciation
pos-
sibilities plus very high yield and
•
1947
Available "—Avftflable Before—
After
1
1948—__
Inc.
^
' AH
Fund
Funds
$3.17
$6.40
$15.73
13.25
1949
Sinking
All Funds
27.52
1.43
37.64
2.79
11.67
7.53
20.09
25.55
1951__"__
10.10
24.20
32.54
1952
17.02
41.M
1950_i.ll
!
-
"
;r-w'Ne:t earnings ioi 1953
46.39
are
esti-
States Steel
caught
with her. She has com¬
fered
equal, before funds, to more than
works
petition in world markets and is
short
$50 per preferred share. Here we
notes
$30 million,
mated to approximate
I
why
obliged to import food and basic
New Jersey and Europe — the so-called Schuman materials. Despite a recent im¬
The huge atomic plan — was conceived and de¬ provement in her exchange posi¬
plant being built in Ohio and the veloped by France. This plan for tion, England is in a sorry plight
steel
and
coal
industries financially. Proud, as always, she
import of iron ore through Balti¬ the
more for the Pittsburgh steel mills
recognizes the necessity for free clamors for trade, not aid." More¬
$20 and
$22 million which is the best one
iw
between
are
warges
a
194587—
As long
better than the common.
up
in
Pennsylvania.
shares
preferred
the
like
Corporation's Fairless the physical core of the European
Trenton, N. Y., key¬ Defense
Community.
The
first
whole new industrial de¬ economic integration of Western
near
velopment
too, to an important reason
come,
39
(1347)
Number 5206 .The Commercial and Financial Chronicle
Volume 177
and
much
so
is
such
on
while her cousins,
Nevertheless, I think
rations,
are
well off.
the
feeling
minor,
partnership of
our
and that the
countries is a
prime necessity for our survival.
From
us
to
a
selfish point of view fori?>
all may I add that were we
assist our English friends,
not *
the
competitive markets to eliminate over, her morale is high, and as
the ancient frictions, and by de¬ always her loyalty is to be de- liquidation of her assets on world
years,
an
any
(3) A comparision with the
markets might prove catastrophic
veloping active commercial rela¬ penued upon, if we wish to have
dividend
has
to
be
transferred price and
earnings development of
tionships with Western Germany England as a responsible partner even for us.
into the Surplus Income Sinking Kansas
City Southern Railway $4
Well,
spinning
our
armchair
may ultimately form the kernel of an the union of Free Nations, we
Fund. Thus, the preferred shares non-cumulative
preferred shares
a
United States of Western Eu¬ shall have to import from her— back into its place, and knowing
can
continue to offer an attrac¬ from
1946, the year in which full
that
for
reasons
Of
time
we
which will mean the lowering of
rope. France herself has made a
tive yield, whereas, any substan¬ dividends were
reinstated, to date:
conspicuous recovery these past tariff barriers at home, despite the haven't been to Italy, Belgium,
tial 'increase in the common divEarnings
years, not due to American funds toes that may be stepped on. Per¬ Holland, Switzerland, Sweden and
dend will have to await further
Per Share
Price Range
alone, which were largely diverted sonally, I believe England's eco¬ many other countries, can we take
developments.
1S4G
$17.52
45
-67
stock for a moment. At home the
for her overseas military needs. nomic well-being an essential part
What are the comparative ap¬
27.68
47'/»-58 Vu
However, one must recognize cer¬ of the military security of the economic outlook is good for a
41.64
48%-60%
preciation chances?
Earnings of
194934.42
52
-62%
tain
unfavorable aspects of the United States. I can imagine no time ahead; abroad the situation is
$10 to
$12
per
common
under
1950
29.28
57%-70%
French
position. Their economy greater folly for ourselves than fraught with political and eco¬
24.84
63
-70%
present market conditions (South¬
uncertainties whose
out¬
still owes part of its stimulation not coming to the aid of England. nomic
1952——1__
28.44
66
-72
ern Railway earns $19.13, sells at
to our purchases. The effect on Unfortunately, there
is in Eng¬ come no one can foretell save that
86) warrant a price of 40-60 or a
Baltimore & Ohio preferred is
the franc-dollar rate was drastic land, too, a bit of anti-American¬ the Free World is committed to
30 to
100% appreciation within the security I like best because
last
summer
when
the
first ism,
understandable perhaps in stand united in its struggle for
two years. The preferred, in my there are excellent chances that
j
rumors
of lessened purchases by this proud country which has suf¬ survival.
opinion, offers during the same the company's capital structure
the United States broke out. The
time an
appreciation possibility will show extraordinary improve¬
French budget is to a large degree
of 50% or more in addition to a
additional favorable factors.
are
few
in the next
amount equal to
expect
might
•
in
ment
return of
•My
8%%
(1)
The above earnings table..
For the first time in many
railroads
Eastern
vored
rate decisions
on
able
of
unprofit¬
service should be
passenger
some
Ohio
losses
as
a
much
case,
yield
dependent
it
revealed
was
amongst
so many,
Certainly
it
stand
is
It
history.
particularly th^
can under¬
light of French
the
permitting abandonment of some
future
similar loss is expected for 1952.
highly unprofitable passenger
fear of the industrial and military
Efforts
introduce
being
.now
are
made
of the ICC in
pected cooperation
trains.
to
favorable
recent
The
abandonment less complicated. In
freight rate decision should make
for increased
earnings over the
addition,
excellent
legislation to make such
completion
Continued
from
United
of
page
results.
1952
■
furnish
to
revival
battleground
a
Neutralism
war.
a
develop
a
create
a
Germany
But Not So Abroad
financial
umn,, that is, the, method by
the Soviets wer£ acquiring
aid to
the mother
effort
their
economic
with
assistance,
orders
or
know.
The strategic
reduced
whether
West¬
goods, including those in a
strategic category. Incidentally as
a case in point I mention that Red
China recently concluded a trade
try-. Whether the French can sus¬
tain
which
ern
coun¬
in
agreement with Ceylon, a
member
I do not
importance of of the British Commonwealth.
Now let's leave the Far East for
Indo-Ghina, economically and geo¬
graphically, in the checking of the a quick glance at the Middle East.
Communist advance in Asia can¬ Iran has been walking an eco¬
grants from us,
,*#«
ern
Germany
real
as
trial
is
•
course
very
Western Germany's indus¬
has been so enor¬
progress
mous.
of
As
trading nation Western
a
of the principals
foreign
markets.
The
Germany is one
seeking
of Germany into two
of course a highly
separation
divisions
the
artificial
and
Germany
Western
able
been
past
arrange¬
had in
its
sell
to
manufactures to the Eastern Sec¬
which it
not be overstated. Were the Com¬ nomic and political tightrope ever
received food supplies, as well as
munists
to
triumph,
the
way since
the nationalization of the
to Eastern Europe. The political
would be paved for a march down Anglo-Iranian
Oil Co.'s assets.
aspects of the bisection of the
across Thailand and subsequently
The Middle East is said to contain
are
perhaps the most
to Burma, Malaya, and Singapore. one-half of the world's known oil country
alarming for there is little in Ger¬
.In Malaya the British have been reserves. Oil could be a decisive
man history that does not warrant
trying to put down guerrilla war¬ factor in another war. The Soviet,
the belief that the two sections
fare and are still at it.
Malaya however, deficient in oil reserves,
ultimately
attempt
fusion,
and
Indonesia
itself
are
vital borders on Iran. Mullo Kashani, will
tion of the country, from
sources
of
supply of commodities
as rubber,
which we lack.
call
attention
(In passing let
to
the
me
In
in
on
the
Communist party.
be saved.
may
there is a new gov¬
under Naguib. The Suez
Egypt
ernment
..
Canal, presently garrisoned
an
but she is also de¬
pendent on the economies of other
countries to purchase the products
fashioned by her cheap labor, and
she has to import raw materials.
pendent
situation
me
its democratic dress,
economic recovery.
military security she is de¬
Japan,
has staged
For
,
with
possibly with our intervention and
a
ctiange in tne British attitude
economic right hand is in conflict
political left hand.)
flirting
Mossadegh- seems still to be in
somewhat uncertain > control, and
tin-purchasing policy, in Australia
by our method of purchasing wool.
It would seem at times that our
our
be
to
Tudeh Party,1 or
economic
havoc created in Indonesia by our
with
said
is
fanatical churchman,
Iranian
the
tin, and quinine,
spoh
Free
us,
press
may
by the
vital question for the
World. According to recent
British, is
the
Canal
must be maintained as
an
open
waterway.
..Indications
Western Germany, Eng¬
and Israel are in a bitter
yesterday were the British will
yield on the Sudanese question
which has been in dispute.
struggle for markets.
Trade, I
have always thought,
inevitably
and
ultimately
follows natural
Going further along the African
Coast we see Morocco and Tunisia
Japan,
land,
geographic lines.
Does it not seem
likely that Japan will one day
again be buying the iron-ore of
-
complete
satellite of Eastern Germany and
made
Jias
the
in
ferment, with
maintain the
France desiring
status quo, the
a
strongly supported
has in addition
Nationalist
aspirations of
all
Strangely enough the
of Nazism in both seg¬
Germans.
revival
ments
nists
the
Germany
of
fits the
Rus¬
and Commu¬
make common cause of
pattern. Nazis
sian
can
effort
destroy
to
the
Bonn
is
being
which
government,
major cornerstone
in the defense structure of West¬
looked
ern
on
as
Europe. In my opinion the one
thing the Soviets are determined
not to tolerate is revived military
strength in Western Germany and
a
West German army
in
the
West
Command.
entirely
incorporated
Defense
I believe it
European
Further,
possible
that
at
an
op¬
portune time Russia might create
another Korea,
espousing
a
desire
the
authori¬
rate structure
and the debt management program.
The effects of the changes
which have been made by the powers that be., so^far, have gone*
ties
undertook
rearrangement of
the
interest
obli¬
The
adjustments that have been made by the funded issues of the
Treasury and certain non-Government securities have been fairly
pretty well through the entire money market with corporate
the influence of the tight money policy.
gations now feeling
sizable
as
as
far
as
yields
are
concerned.
•
However, it does not seem,
though this trend has reached its culmination since it appears as
though there will still have to be further yield adjustments be-v
cause there are forces in the economy that still have to be influ¬
enced by monetary measures.
Loan Pressure to
Continue
authorities, according to some of the keener fol¬
lowers of the money markets, are going to continue the tight
money program in order to influence the loaning policies of finan¬
cial institutions.
In other words, there will be no let-up in the.
pressure that the Federal Reserve System has been keeping on the
commercial banks because the monetary authorities are very desirous of either slowing down or calling a halt to the very sharp
The monetary
leans and mortgages.
uptrend of consumers'
!
...
The fear that the
creatio,
overstimulation of the economy which comes through the
of
debt, and which keeps the boom going, will have to eventually
a bust, is the reason for the concern and the type of mone¬
result in
tary policy that is being
order
In
to
followed by the powers that be.
out this objective of bringing the debtslow down before there is great damage to the
carry
created boom to a
,
whole, the level of interest rates has been allowed to
This, along with the tight money policy, the program of
extending the maturity of the short-term debt and the talk of a
long-term new issue, are the tools that the powers that be are
using to bring about what they hope to accomplish. Quantitative
controls are being used by the authorities instead of qualitative
ones such as regulation W
and X.
To be sure, the quantitative
economy as a
rise.
to give greater flexibility for action in certain
probably one of the reasons why the monetary
authorities have seen fit to use it.
'
method may seem
instances and this is
,
Long {governments the No. 1 Casualty
the
On
term
other
hand, there
Government
bond
are
market
some
appears
casualties and the longto
be the number one
problem as far as the current credit limiting program of the au¬
thorities is concerned.
In order to keep the pressure on the loan¬
ing institutions, there cannot be much concern about the
level of
prices or yields of the most distant maturities of Treasury obliga¬
tions. This certainly seems to be the case at the present time be¬
cause
very
the long-term
many
Government market does not appear to have
One cannot be blamed for not making com¬
they have not been exactly a
short timt
friends.
mitments in these securities because
source
of happiness to those that bought them only a
ago.
employing the East
for
Germans as her tool. The entire
Manchuria rather than the more complete, not nominal, independ¬ situation is rife with danger for
ence, and our government walking
expensive ore of British Columbia
the Free World.
a
tightrope between the two so
or
.Nevada?
Such
action
may
England, with interests on the
as not to upset the applecart. For
prove
contrary to political Ob¬
continent, in the Empire, and de¬
jectives, but I point out its likeli¬ many reasons we have to handle
siring close cooperation with the
hood in the same sense that "Life" France. France, to whom we owe
United States, is in a tight spot.
rpagazine last month published an; so much politically and culturally,
Economically,
evolution
has
article on the Soviet Sixth Col¬ is a principal factor in NATO, and
natives
issues continues to follow much the
pattern tnat has been in vogue since the monetary
same
a
,
to
mercury
attracted to each other. Moreover,
Russia
a
despatches British troops
be withdrawn. Nevertheless
of
molecules
two
like
The market for Treasury
was
arbitrary
ment.
not being considered yet even for averaging purposes
quotations are still expected.
Yield Decline Not Over
West¬
The fear of the might of
are
because lower
psychological program
greater amity for the
Western
in large met
issues,
will
Department
policy.
long-term Government bonds, despite new all-time lows
place in prices of these
The
States.
United
Home Outlook Good—
State
the
great demand for liquidity as there always is when un¬
and the substantial decline which has taken
make the factors of a moral
way
trust
indirectly financed
sure by ourselves thru
in this
a
dependence uncertain. I say that
as
an
ardent
Francophile, and
18
was
a
the
and
a
certainty is as rampant as it is now. Accordingly, the funds that
are not going into loans and mortgages are being put to work in
the near-term issues and there are no indications yet of a change
good deal of anti-Americanism, in
to
the latter
for
plus
Germany,
West
of
There is
not to
again, not
$60
share
-
nearly all of the attention of the buyers of Government securities.
desire
have their soil ravaged
change in the market action of Government secu-
gations continuing to be the market leaders as they are getting
one
the
in
no
rities, because the process of slowing down the trend of the boomcreating loans still goes on.
This seems to indicate that Treasury
issues will continue in the recent pattern, with the short-term obli¬
prevalent
neutralism,
and
preferred
Governments
on
By JOHN T. CHIPPENDALE, JR.
There is
pect in France is the spirit of so-
in 1951
per
Reporter
French
the
to
to about
amounted
sources
Our
in the first
Another unfavorable as¬
people?
young.
its ability. Huge sav¬
pur¬
extraordinary
not
instance to this government before
growth territory through recent
developments.
The management
proven
it
submitted
was
called
ings could accrue in case of ex¬
United States
on
Is
chasing.
that it
sharp advance in its market price.
The road's territory has become
has
such
from
easily
to 15
a
major importance to Baltimore
&
a
8y2%
roads.
Southern
and
Western
Abandonment :Of
fa¬
are
such
divi¬
could
times
than the present
will prevail, resulting in a
smaller
compared
4.3
from
In
times!
f
preferred
of
requirements
improve
future.
foreseeable
the
coverage
dend
are:
(2)
years,
to
The
optimistic
for this
reasons
forecast
per annum.
-
.
The decline
lows
!
in prices of long Government bonds to all-time
has been very
will be ended here.
sharp but there are no indications yet that it
To be sure, the major part of the recession is
quite likely over, but it does seem to be a bit early yet to .do that
in order to get
rather distasteful thing of averaging down in price
out
on
the way back.
sumers'
loans and
Until there is a change in the trend of con¬
of
especially In the
mortgages there is not likely to be much
change in the action of the Government market,
most distant maturities.
'
.....
'
...
40
(1348)
The Commercial and Financial Chronicle.
Continued
from
Thursday, March 26, 195$
when employment is high and the
9
page
; ;
rising labor costs mean a slowly real - savings
may
stimulate, to
goods strong.
The rising price level, r Even in the some
extent, the use of bank credit
farm products should absence of a large permanent de- to
finance consumption or
be limited to penoas when busi- fense
invest^
program the pursuit Of a ment, but that the
excessive use
ness recession reduces the demand
policy of high employment on the of bank credit can be
fairly
well
for farm products to levels below
part of the community would keep prevented
demand
lor
support of
Defense Economy
Private Enterprise
Reconciling
With
?■:
Ibe expected within
«®r
four
-even
probably no*
a year, or
low
as
the next three
to drop as low as
years
$40 billion
a
$45 billion
as
a
year.
The jet
plar.3 has brought about
xSHfiliubin in aeronautics that
a
rvrntinijp
raniH
for
Atnmin
t
nnwprpH
inn
n
field
.^or
reour
naval
rpmiirp
hut?e
and
a
nes
s
^ther types of vessels.
the rapidly developing
in
of
rockets
in
^nhmTr
suDmarm
fnr
expenditures tor
•possibly
•Outlays
and
vears
rpnlappmpnts
missiles
guided
will
continue
at
and
a
mgn
level, and the spreading applicalions
of
electronics
will
rapidly
eign aid and
$56,1 trillion
atomic
normal.
In
place,
there
are
various miscellaneous activities of
the government, including general
to
year—a
rise of
about $6 billion above the present
energy,
by credit-policy pro¬
bargaining position of unions vided the
banking authorities are
able to apply controls
selectively
—that is, provided
they are able
stable prices and high employ- to restrict credit to
finance con¬
the
1
.
fourth
the
a
strong that labor costs and
prices would rise. In other words,
so
administration, which now cost $9 ment are incompatible, unless the sumption without
at the same time
billion a year.
In the course of community is willing to replace
necessarily restricting the use of
rate. If it were possible to hold two years, a 10% savings could free collective bargaining with credit in
production.
The fore¬
defense expenditures to the an- perhaps be achieved. These sev- wage controls. I do not believe
going analysis shows that the pol¬
nual rate of tbe last ter} montbs> eral savings, with the exception that the community would be. I
icy of maintaining a high level of
*he casb budget for the fiscal year 0f the unpredictable saving on the do not think that the
community employment makes the
bargaining
1953-54 would be almost in bal- support of farm prices, plus the would be willing to accept unnecpower
of unions so
strong that
ance- There would, it is true, re- proposed profit of $150 million essary
unemployment in order to wages are
pretty
certain
to rise
main a Pr°blem for the fiscal year from Post Office operations, add keep prices from
slowly rising. faster than output
per manhour*
1954"55' when the £uU e££ect o£ "P to around $1.8 billion. II no Hence, even in the absence of a thus
bringing about a slow rise in
the terminations 0f temporary tax new
money need be spend in sup- large permanent defense
program, labor costs and prices. This
increases would be feit. Allow- porting farm prices in the fiscal there would be a slow
analy¬
upward sis demonstrates,
ance
must be made .for the fact
however, that a
year 1954-55, the savings would movement of
prices in the long large defense
that the growth of the country
program
accelerates
^add up to around $2.5 billion. I run.
the rise in labor costs
increases the yield of taxes by have excluded
only to the
any possible saving
what difference would a
large extent that it makes the
around $2.5 billion a year.
Fur- in public works because I doubt
demand
permanent defense program make?- for goods
greater than it other¬
thermore, the increase in social whether any net saving here is
Would; it substantially aggravate
wise
would
be.
\
T; v
security contributions scheduled possible. Some of the projects are
|
the tendency for labor costs to
for Jan. 1, 1954 will add about $1
The most
hard to justify) on the other hand,
general, and the most
rise? The answer to this question
billion a year to revenue. Hence, there are
important conclusion from the
many badly needed pub- would
depend upon the influence
revenues for the fiscal year should lie works that are not
analysis is that the
being con- 0f the defense
possibility of
program upon the.1
be about $73 billion, indicating a structed. Savings on
reconciling a large defense pro¬
cutting out demand for
goods. Only if .the
gram with a free
cash deficit of about $2 billion, "pork" should be used on badly
economy de¬
program increases the
total deunless sufficient cuts are made needed public works.
pends upon the ability and will¬
'
;
•;
mand for goods, will, it improve:
ingness of the country to finance
in^ nan~aet®??se> expenditures. A
This summary 0f the : budget the. bargaining; position of
unions, the defense
cut ot. W piuion m non-detense
program out of taxes
0Uti00k, brief and inadequate as and thus enhance their
ability to; or real
savings. Since any defense^
mJa** a
it must be, indicates that a bal- raise labor costs.
But, as I shall,
program which
-
-
,
.
introduce
fense
obsolescence
into
de-
to
ask
equipment.
These
lead
facts
me
-
•whether the time has not
view
the
discard
that
to
come
there
will
I*e a plateau in defense spending
followed
within - two
or •three
years
by
drop. Ever since April,
a
has
there
•change
been
real
no
in
monthly expenditures
■<sm
<sm defense.
In fact, these outlays
in January
and reuiuaiy,
''Hillary anu
February, xauo
1953
were below expenditures in April,
1952. In six out of the ten months
•from
May, 1952 to February, 1953
pvnpnditiirps
Anril
the
for
same
ifther
Mightly
two
months
in April
as
months
be-
werp
thev
and in
xnore
a? in"
+r.
^oderatelv
present level™
moclerately from
trom Present
levels.
{{uresrca(n beheld to $50 biUion. the
y mdicates, however, that
cannot
less
may
the deficit in the Post Office and
penditures
de-
held
the
total demand
least to
for
goods
at
small extent.
a
taxes
financed
or
real savings can be
operated in the long run
without
material controls or
price con¬
trols, the size
of the
defense
pro¬
Even if taxes are high enough gram that can be
principal possibilities for cuts in effect yYa(8)
of the tax reductions inreconciled with
to balance the budget, will not a
free
government expenses within the eluded in the present laws will be
economy depends upon the
a large defense
program have willingness of
the
next two years* In the first place' felt> a deficit of about $1° billiori
community to
some
it ought to be possible to eliminate
be
in
be
can
?nce <wili be acbieYeii in the com~ point out in a moment»the defense by
fiscal year if defense expend- i-vxw6iain
program
probably will
piuuauiy
wnx
increase
mv-xcaac
mg
»"6
„;co
occur,
to put the non-governmental mail But, if
carrying activities of the Post Ofon a profitable basis.
At presen^ ^be p0st Office, with gross
receipts of around $3 billion a
year, has a deficit on the nonachievement for government
part of its business of
spending
or
such
i:i-0i,r
were
aboJe, ApJd*
prompts one to ask whether
lense
pvnpndUures
^
rernrd
thev
aL!Tnrn Thtf
>
the
on
fice
money
support
the
prices,
indefinitely down to
the current rate, which is around
$50 billion a year. It would be a
no
nated
tendency to increase the
if defense exheld to $50 billion.
even
are
demand for goods and thus to
increase slightly the inflation¬
ary influences in the economy?
need be spent
of
agricultural
deficit
believe
be elimi¬
the fiscal
may
that
the
answer
to
pay taxes or to
into
government
put their
savings
securities.
Charles D. Genisch Is
With Ross, Borfon Co.
Question is probably "Yes."
year 1955-56, the normal grov/th The higher taxes that individuals
in
the
yield of present taxes and enterprises must pay because
xnost important
would seem sufficient to elimin- of the defense program limit their
(Special to The Financial
4the Eisenhower Administration if
Chronicle)
around $500 million a year.
The ate the budget deficit that is in incomes after taxes but do not
it could succeed in holding deCLEVELAND, Ohio—Charles D.
British Post Office, which includes
prospect
for
the
fiscal
year correspondingly
limit their de¬ Gentsch has become associated
fense spending to approximately telegraph and
telephone, makes a 1954-55.
sifes to spend money. Hence, the with Ross, Borton & Simon, Inc..
present levels.
small profit. In some years it has
The
answer
to
the
question
taxes required by the defense The 1010 Euclid Building. Mr.
(6) Will it be possible to balance ™ade a large profit. Since carry- «will it
be possible to balance the propam encourage, to a small ex- Gentsch, who has been in the
in¬
4he cash budget and meet the
1S
altogether.
By
„
,
costs of the defense program?
The
xne cash
casn budget
includes all
Duagei mciuaes
an of
oi
^^endeTwXSnllove™:
jnent
.
"lent
.
agencies
„
wnn
non-.govern-
parts of the community. It
reaiA a busmess> the
Post Office ought to make a profit.
casb
1
to be, "Yes," for
mar^ is
.of flve ce"ts
the dollar which
on
comparable
T»ension
Jin
scheme)
...
"L
and
T>0:lvncij
at
special de-
•posit accounts excluded from the
•
administrative
excludes
IU
iions
budget.
those
which
It
also
non-cash transac-
are
included
in
the
administrative
.
budget. Whether
or not
the cash budget can be
I>alanced during the next two fiseal years depends in the main
(1)
^tipon what happens to taxes,
vuavu,
unvi
and
—x-——
»...»»«
..u^^/vuw
»v
<2>
<2)
upon what happens to defense
^hat happens to defense
•amending. including
including foreign millr«pending,
foreign mili-
'(tary and economic aid.
There
were
1950 and
Saxes
and
-scheduled
put
1951
tax
to
into effect
several
in
that
the
are
on
June 30, 1953,
temporary increases
iwathe personal income tax on Dec.
:.3I,
1953,
temporary
increases
cthe corporate income tax
on
in
April
1, 1954, and increases in taxes on
..distilled spirits, malt liquor,
cigar«ttes,
gasoline,
and
.
in
main, it
would have to
be achieved by proper rates on
the carrying of mail, particularly
proper rates on the carrying of
printed matter. Is there
paper or magazine
any news-
sufficiently in-
automobiles
and
defense
'f nnf'
prarn
the
a
costs
seems
defense
tban
pro-
billinn
toaryeaJs iVsS-S^a^d
1954.55
year
nrp
iqpifi.PiR
vpnrc
meet
program?"
Rnt
the
for
answer
is,
Jf;
'
? financing of the purchase
f goods by bank credit. Thus,
even though the budget is bal-
anced,
large defense
a
(reduces
fluence into the
With
a
lar^
Douglass Co.
%
policy? A
large ripfonco
defense
job is done in cutting expendi- program will, for some years to
(Special to The Financial
Chronicle)
fures
come, severely limit the use of
BEVERLY HILLS, Calif.
De?
(7) Will the defense program fiscal policy to control inflation Los H. Smith has become affili¬
because the high rate of govern¬ ated with
bring about inflation by caus
Douglass & Co., 464
ing wages to rise faster than ment spending will make it diffi- North Bedford Drive. Mr. Smith
output per manhour?
cult to keep the budget in balance was previously with First Cali¬
jet
add
me
atc,,m0
o
assume
a
good
rrpHU
nr
or
nniinv?
—
n
owe^
^AY"3?
,
.
.
,.
which the
-
•
.
.
^
prosper
0UTS newspapers and magazines?
no
sh°nifrrfatMtbat
y
|naW con- rngs faster than the engineers
ters on large and highly
Putting
r,^thpTpnri^v'fnr3hfJh
nmrnt*
additional money into
the Federal National Mortgage
Association Mr. Truman's January budget proposed about $300
million additional for this agency,
The agency, which buys, holds,
and sells mortgages insured by
the Federal Housing Authority
and the Veterans Administration,
already holds about $2.6 billion of
,
,
,,
,,
liivcotiiiciii
investment
.
are
able to raise output per manhour.
unemployment, which had averaged.about 3.4% of the civilian
labor force in the year 1948, increased to 5.5% in the year 1949.
Average hourly earnings of nonagriculture
would be
the
the full effect of these tax termiviations would be felt, the revenue
Mortgage Association
the assets of the Federal
In the third
to
some
of
National
be
sold,
cuiiliuiicu
controlled
for
Reed
creases
month
output
economy
as
per
a
pretty completely by credit policy
BEVERLY HILLS, Calif. —
_though the control may not be George R. Reis has been
added to
the staff of Waddell &
Reed, Inc..
8943 Wilshire Boulevard.
du Pont Adds to Staff
tjghteni
ducers.
.
cfedit
if the
use
use
o£
0.
of credit
™Lumptionc7nbcrestricted
b
£
be
the
on
j
[ !n
nrettv
restricting the
production, one
sure
will
that
act
the
use
may
banking
only
j
(Special to The Financial
Chronicle)
BEVERLY HILLS, Calif. —
James B. Blair has become con¬
nected
with Francis I.
du Pont &
Co., 9640 Santa Monica Boulevard,
was formerly with Fabian
&
He
Company.
tardily
manhour
T<i
(Special to The Financial Chronicle)
whole in-
2.5% a year. In the tenperiod from September to
I
(Special to The Financial Chronicle)
With Gross, Rogers
average
for
be
u c
same
ble balancing the cash budget, it the
desirable
a; ci ii
can
Consider, for example the period compl*eIy ef fectlve. It „ lm
°£
^e£ a£lan ^at began m tant for €xample that the bank.
{he faU of 1948. By
ing authorities be able to apply
h?W Senfcmher eredit controls selectively-to re°non^arm'
strict consumer credit, for exam1948
f^fjhe index of non-farm j without at the
time
wholesale ]prices by 5.0%. But
revenue loss in the fiscal
year
1954 would be about $2.2 billion,
%n the fiscal year
1954-55, when
influ-
Si oftii^^lusions en^ntollSp^y,
that
credit
w
Gentsch
& Co.
economy.
Cannot this inflationary
"It
authorities
4he
program in-
mild inflationary in-
a
vestment business in
Cleveland
for many
years, has recently been
associated with Bache & Co.
In
the past he conducted
his own in¬
vestment firm, Charles D.
fornia Company.
At periods of high employment
terested in sound government fin-9
PIUS. Bllt tll6 t6IlQCnCy for high
nancing to advocate proper rates the Korcrominrf
bargaining power of florin
trade
f
_ t
stimulate the use of bank
on printed matter and the aboli- umons
Joins Waddell &
credit to finance consumption or
-
near
iuture—the Excess Profits Tax
•
P^rtlY by in.creasea eificiency
and changes in methods,
but
the
p.
Intthe second place, the governtemporary ment can reduce the deficit by
increases
expire
in
budget
the
'°,margins in P»vate business f^The
This
xms
margin would
wuum yield
yiciu a pimii
profit
on the carrying of
private mail of
Ihe Old Age
-toeofd8
ir"St/n7ZtSvivorshInS
^ ^
and Survivors
In- achieved
TT'
•'" ^ eff
partly
by increased
A
0f
Conclusion
This
review
of
the
LOS
economic
problems created by a large de¬
fense program of indefinite duration yields several conclusions of
V.
ANGELES, Calif. —James
Priest
with
has
Gross,
become
Rogers,
affiliated
Barbour,
Smith & Co., 559 South
July. average hourly earnings inFigueroa
loss would be about $8 billion.
ment expenditures for the
support creased about as much as producStreet, members of the Los An¬
Last January,
President Tru- of the prices of farm
products tivity may be expected to increase considerable importance. It shows geles Stock Exchange. Mr. Priest
man submitted a
proposed budget should be
drastically cut, except in 12 months. In addition, many that direct controls of materials was previously with Harker & Co.
jfor the fiscal
year 1953-54 which
expenditures of $81.8
place, the
govern-
in
years of recession.
Mr. Tru- workers obtained benefits in the or prices are not needed so
long and Walston, Hoffman & Goodwin.
budget proposals of two form of pension plans and sick as defense expenditures are fitrillion, and which estimated re- months
ago recommended nearly benefit plans that added to labor nanced
by either taxes or real
ceipts of $75.2 billion—a deficit $700 million for this
Joins First Oakland
purpose. Ac- cost. In periods of expanding em- savings—that is, by methods which
^
$6.6,billion in the cash budget, tually, expenditures in
support of ployment, the tendency for hourly reduce non-government spending
(Special to The Financial Chronicle)
'
The estimates of revenue assumed farm
prices during the coming earnings to outrun productivity by as much as the
defense proihat the temporary taxes would fiscal
Oakland, Calif.—John C. Pedyear may run to about $1 is even greater.
gram increases government spend- ersen is now associated with
First
«xpire as scheduled. Mr. Truman billion. It is
obviously ridiculous
It is obvious that in the long ing. It demonstrates that even Oakland
proposed an increase in total de- for the government to
Corporation, Financial
support the run the price level must adjust it- the financing of the defense ex- Center
Building. He was formerly
ti,a$kmse expenditures, including for- prices of farm
products at a time self to labor costs* Hence, slowly penditures out of tax
revenues or with Stephenson, Leydecker &
«alled
for
man's
-
Co9
Number 5206... The Commercial and Financial Chronicle
Volume 177
Continued from page
(ly.n
improve their tax struduTe, and
control
domestic
inflation. And
4
the American
why
is
That
sweeping
Allies proposals. The extreme caution of
have been hearing fairly
you
talk to our NATO
from this Administration, and you
tough
will be hearing more
of that kind
the
is
purpose
economic
not to weaken
the
of
defenses
these
of
any
the Administration in its
this
to
the
of talk.
The
endorse
problem
communique
in
talks
recent
approach
was evident in
issued after the
Washington with
and
British Foreign Minister Eden
to pull out Chancellor of the Exchequer But¬
solemnly under¬ ler. The communique contained
taken in the North Atlantic Alli¬ no
ringing promises on
either
Western
World,
or
commitments
of
The purpose
ance.
relationships
on
a
is to put these
more
lasting
Administration recog¬
basis.
The
nizes
that
economic
European
strength rests
a
on
it has to depend on
shaky basis if
annual hand¬
outs that may or may not be
voted
reluctant U. S. Congress. The
Administration is facing up to the
by
a
there
that
fact
is
no
quick
easy,
side,
particularly
and
The
Americans.
the
from
not
experts
best
have put this com¬
of Washington
under study and pored
a microscope, a stetho¬
munique
it with
over
that
ills
might
be
Administration Wilt Foster
International Trade
You have already
indications
that
British to take some
specific
to
step
dollar
the
ease
doing
share
of
trade,
is
fense.
to
international
making
from
or
rightful
necessary
more
commitments
our
shrink
not
America's
what
stimulate
Eisenhower
will
Administration
from
for
good
on
mutual
de¬
Act, passing the Customs Simpli¬
fication
Bill, moderating the "Buy
restrictions
American"
Gov¬
on
purchasing.
do not yet know to
We
the
in
Congress will
what
cooper¬
out these
carrying
objec¬
tives of the Eisenhower Adminis¬
tration.
The
Republican Party in
as internationally
the Republic Party in
the Executive Branch of the Gov¬
majority of the
mem¬
of
early for the United
too
careful
a
over,
about the famous tariff com¬
sure
mission
of the briar pipes.
case
The
took
decision
mission
tion
of
important sec¬
majority. It is far
an
up
that
certain
from
simplified
rules, etc., but the Demo¬
make
all
that
of
Eisen¬
hower's party in Congress will go
with
along
would
him
like
take
to
restrictive U.
the
on
he
that
was
wasn't
just
his
tip
to
hand
be
he
steps
toward
less
a
S. Trade Policy.
In
necessary
for Eisenhower
down his natural inclina¬
to tone
or
so,
full
the
fore
economic
foreign
policy of this Administration un¬
folds. When it is disclosed it will
of
have
course
will
leaning
strong
a
internationalism.
I
be
not
as
How¬
that
it
internationalist
as
equally
am
sure
foreign traders might like. It cer¬
tainly
one
not go all the way
trade, and probably
will
free
half that far. Some¬
described
once
the economic
approach of this Administration as
one
of "imaginative orthodoxy."
I think that is a very apt descrip¬
in that spirit I believe you
tion,
so
will
find
their
recommendations
will
policy
trade
foreign
on
be
imaginative but orthodox.
Recognized: Economic Cooperation
Is a Two-Way Street
tion to strong internationalist pol¬
I
don't want to leave this sub¬
icies, in order to retain the solid
ject without emphasizing the fact
support of his party in the Con¬
that, to
and avoid embarrassing Re¬
publican Congressmen on whom
the
he must depend
for help
other
tion
issues.-"
~
That is why I do not expect to
end
of the
and
see
gress
j
see
the
on
Administra¬
tion endorse any of the more farreaching schemes for international
trade that have
recently been pro¬
In the last few months we
posed.
have
the
seen
Commerce
trade;
Detroit
out
come
have
we
seen
Board
for
of
free
Henry Ford
with tariff
II advocate doing away
barriers,
Security
we
have seen a Mutual
Board under
Advisory
Daniel
Bell, the banker, propose
sweeping reforms of the Tariff
Daws,
drastically
reducing and
simplifying the tariff, dropping
duties
In
important commodities.
on
addition,
there
have
been
proposals for trick ways of over¬
coming the world's dollar short¬
age,
such
as
marking
up the price
the profits for a
stabilization fund
of gold and using
huge
currency
so that Britain and other leading
trading countries could drop their
currency
change
the
in
mosphere,
I
do
to
be
remarkable
Washington at¬
some
not
coopera¬
two-way street. Get
a
communique issued at the
talks
with the British
how much
of it
de¬
was
voted to
believe
policy toward Latin America has
undergone
The
Republican
1920's
changes.
remarkable
Policy
replaced
was
by
of
the
the
love
intensive
promptly
America
courtship.
after
the
almost
Then
war
dropped
Latin
off the
far as official" attention
from Washington was concerned.
map,
as
That policy seems to be changing
toward
now
a
balanced ap¬
more
proach. Within the first few weeks
Administration
new
economic
a
problem
now
running
our
policy:
;
the
that
your
new
be to reduce
not
to
very
fiscal
and
policy had to make
quick decision
for
when the British
same
sions
later
weeks
came
here, these
but
not
promises
yet on for¬
as
economic policy.
and
But when the Brazilians put
in
an
deci¬
promptly made. As you
call for
emergency
a
loan,
a
is
extremely important indica¬
an
be
cuts—eventually—
the expense of sound
at
budget
practice.
relief
Tax
thus
will be moderate, as will the shift
to
lower
levels
of
government
of this
change
Washington.
The great contribution you cam
make is to go out into the market
place and sell, without expecting:
special incentives, special appro¬
national
Administration
deeply in
competition as a
business.
If
conduct
that
be¬
the
virtues of
way
of life for
really want to
export business m.
free enterprise cli¬
you
your
that kind of
a
mate, you can help bring it about
applying the Republican philoso¬ by going out and doing a sujterb*
phy of increased economic free¬ job at your particular specialty—»
spending.
The
dom.
The
is
be
to
same
to
be
junked.
securities
holds true in
in that direction
move
moderate.
SELLING IN 1953.
For instance,
the anti-trust laws
are
not
Controls
business
are
going Continued
the
from
on
not
to
11
page
be
Regulation of railroads,
companies, airlines, steam¬
companies, and competition
dropped.
New Administration
1
power
ship
in all forms of business will
certain
am
that
there
And lis
will
be
a
Trade
policies, and also toward
emphasizing self-help by
other
will
tion
But here also modera¬
White
of
Tariff
keynote.
tumbling down
come
sound
the
the
the
be
won't
trumpet
a
friends
Our
House.
from
abroad won't be cut off without
dime and left to sink
their
see
own.
or
swim
a
on
The changes you
will
months will be
in the coming
gradual.
very
kind
This
defense
own
which
gradual shift toward more liberal
tariff
countries.
Foreign
Policy
con¬
If any change? of emphasis
they will be very slow in
coming.
In the foreign field, I
at
trade
great deal to
a
success
lieves
will
not able
deci¬
do
there
walls
to make any
econ¬
the
which it thrives,
on
can
priations or other special supportfrom Washington. You now have a.
officials told the British they
or
eign
Brazil's^request
on
Several
loan.
a
a
spending
to throw the
as
in
you
into a tailspin and create
unmanageable unemployment
problem.
In the field of taxes,
occur
her commercial
deficit, but
an
in Brazil—Brazil's need for dollar
pay
the
government
sharply
tinue.
exchange to
cut
then
the
uses,
Thus, from the charts
that
see
of Administration
more
in
responsi¬
cauk
you
position approaches
long as military aid
our
balance
so
goes on.
Indeed for the last three-
the situation has permitted,
years
friends
our
their
abroad
to
strengthen*
position which is sonecessary for an ultimate long-¬
term solution to these problems..
reserve
However,
that
world
the
of
all hope, of
we
and
course,,
the years unfold, the rest
as
by steady but
development of its
Washington places
materiafes
in short supply.
were
capacities
indeed its
—
sure
own resources
own*
ability to compete generally in in¬
ternational markets
will finally
businessmen. Less in¬
from Washington, less result in freedom from the neces¬
regulation
by Washington,
and sity of unrequited assistance from
should be mentioned. Some of the
less government economic plan¬ the United States. As the future*
top officials who approved it were
ning by Washington means also
unfolds, I think we all hope that
very reluctant to do so. They ap¬
that there will be fewer subsidies
the private enterprise system wiH
proved it on more or less of a for
business
from
Washington,
increasingly come forward with
trial basis. That is, they will be
fewer
government contracts to its
capital and know-how to pro¬
watching Brazil's actions closely serve as a cushion for business,
vide the so greatly needed devei;
in the next few months to see
and less government help in the
opment
capital
throughout the /
how she conducts herself, whether
way of loans, credits guarantees
world.
In any case,
when that;
she relaxes bars to foreign invest¬ and other comforts that
Washing¬
ment,
whether
she
encourages ton has provided for U. S. busi¬ happly day arrives, if it does, the
vital role of American purchases,
U. S. business. If Brazil uses the
tion of the U. S.
One
other
bility
policy.
facet
this
of
loan
on
terference
ness
loan
wisely, and follows friendly
—
in the past.
Most
men
business
in
would
economic
policies in dealing with
agree with the saying, "That gov¬
U. S. business, there may be other
ernment
is
best
which governs
American
help forthcoming for least." If you really believe in
Latin
American
Republics that that philosophy, then it is up to
can prove they need it. However,
you to conduct your business so
if
Brazil
takes
actions
that
dis¬
appoint the American lenders, she
will find it hard to open the door
time
next
help,
she
and
comes
will
so
to
ask
for
Latin
other
American
Republics. The loan to
Brazil
an
is
that this
be applied in
want lower
taxes, less government spending
and
less government regulation,
then you must conduct your busi¬
theory
Washington.
ness
so
that
can
If
the
you
government can
in really achieve these things.
In
the wind showing the internation¬ very practical terms that means
alist tendency of the Eisenhower you must genuinely want to see
Administration. But it is also a the government save money, even
a
sort of test case that may have on
government program that
has been helping your own busi¬
an important bearing on whether
we
make other such loans arid ness. If you want the government
important
straw
abroad, not only of materials but
of services and pleasures,
such as
travel, will inevitably be the larg¬
est single source of funds wbiclp^
be
can
at
spent
cashier's
the
window of the exporters.
have
I
from
intentionally
commenting
refrained!
numerous
on
factors which have bearing on
the*
level of imports. They are all
we11
known to you. one of the inter¬
esting developments in the last
six or eight months has been the:
rather rapid increase in the public:
debate
and
There
a
new
the
and
fresh
ideas
offering of new
on
this subjects
almost to have beei*.
seems
birth
of
and
interest
sua
awakening on the part of those
of private industrythen you can't make any excep¬ who understand the importance of
for government imports as of central significance
If there is any one impression tions, not even
lending programs from which you
foreign economic I would like to leave with
on this problem. Public debate of
you it
may benefit.
If you really want
is this: that the approach of this
to see our outlays for foreign aid this kind seems to be about the
of State
Secretary
will
arose
things the British should
do, or will think about doing. A
great deal was devoted to British similar financial arrangements in
responsibilities.
That accurately the future.
reflects the approach of the men
Secretary of the
Dulles, and
Treasury
Hum¬
Administration
new
ton is
one
in
Washing¬
of moderation—modera¬
to
get out
reduced, they you have to
admit
best news that any
of
who are
us
that your export interested in international trade
orders may temporarily suffer as
Weeks and Mutual Security Ad¬ economic matters.
could want for that means that
the changeover js made to free
ministrator Stassen are very in¬
As newspaper—and, may I say, enterprise trading. If you genu¬ sound policy which can commandsistent
that
the
recipients
of
magazine — readers, you are al¬ inely want the government to wide-spread support in our best
American Aid must take steps in¬
ready aware that the approach to lower trade barriers, so that other
tradition is eventually forged out.
side their own countries to put
finding a settlement of the Korean countries can earn more dollars
their
economies
in
order.
Of
In this exciting world in which
War is certainly one of modera¬ in this market, then you must be
course, every U. S. official con¬
tion. The policy is not to pull out prepared to see those foreign sup¬ we live, it seems to me there is
phrey,
Secretary
of
cerned
with
problem
the
Commerce
since
tion
of
in
all
Korea
things, particularly in
in
a
blind
retreat
Paul Hoffman has said that. It has
become
our
a
constant
refrain
of
all
foreign aid transactions. But
I think this
new
group of
Repub¬
lican Administrators really means
restrictions.
JJnlesslhere is
economic
international
it.
.
use an overworked phrase,
Eisenhower
people consider
out that
Eisenhower
Latin
to
the last 20 years our
In
on
view of that hard political fact, it
may
attention
more
America.
tariff sion was
month know, the U. S. loaned Brazil
maybe several months, be¬ $300,000,000. It seems to me this
ready
won't go even
crats
the briar pipe
on
tariff and sent it back to the com¬
lower
barriers,
pay
Secretary Dulles
they intended to
and
possible recession.
In tackling the difficult problem
of the budget deficit, the policy
omy
and
that
announced
were
Eisenhower
that
reason
no
deflation
assure
Eisenhower
foreign policy
are
reporter
prise climate
this Administration both President
officials who handle
the
that
Now
review
of our foreign trade and foreign
economic
policy is just getting
underway. You all know I am
talks
this
economy in one way toward
inflation or the other way toward
so
British
mitments.
toward
trade
many of you
vitally interested
in Latin America.
Very early in
level Cabinet
Congress are for interna¬
tionally-minded measures such as
customs
know
are
debts. The very top
ever,
A
in Latin
States officials to make any com¬
minded
bers
I
gentlemen
sizable
far
to
Administration in Washington wjlt
the
international
to
be found
can
America.
of the
toward
ernment.
economics
thing.
Congress is not
as
economy.
policy. It will be another
ernment
extent
approach
any
You know
already that the
Administration favors continuing
the Reciprocal Trade Agreements
ate
shortage.
was
had plenty of
the
hower
commit¬ by
American
an
ment to the
American promise to do any¬
The reason
it can't be
found it that it does not exist. It
lantic.
own
indication of the Eisen¬
and an X-Ray machine to affair of the good neighbor policy
if hidden
in it somewhere and climaxed during the last war
So far, no such commit¬
beset our European Allies.
The ment has been discovered. I have
cure, if there is one, lies in a long interviewed most of the top people
list
of
measures
that
must
be engaged in these talks on the Amer¬
taken on both sides of tne At¬ ican side and can find no trace of
economic
the
for
cure
its
of
out
A good
scope
see
same
negotiators will be
will
Administration
Eisenhower
the
that
water
salvation.
own
policy,
moderation prevails.
pretty good position to insist
a
on
Climate in Washington
their
economic
A top Eisenhower adviser re¬ €2£9prage competition, and wel¬
cently told me that he views the comes the competitive
being done for they will economy of the United States as as the best climate in which to
probably be able to show that balancing on a knife-edge.
The carry out its new policies. If you.
the United States
is taking its Administration doesn't want to do believe in the true spirit of
con*-=^
own
advice, and squeezing the anything drastic that will push petition, and the private enter¬
in
The New Economic
lor
In
c6u%sei vi
41
likely
be
very
tough in insisting that other
coun¬
They
are
to
ties tty/to, balance their budgets,
appeasement. Nor is it
a
of
policy of
rushing deeper into Korea, com¬
mitting
more
and
manpower
the
possibility
pliers take a piece of your domes¬
tic market.
The
theme
this year
cernible in the business commun¬
of your Convention
is "Selling in 1953." This
in a desperate gamble for means that you recognize the
all-out victory. The eventual deci¬ growing force of competition. Your
sion is going to lie
somewhere business is geared for the com¬
money,
between those
of it
are
extremes, and signs
already apparent.
*
;
statesmanship dis¬
increasing
an
petitive race that lies ahead. You
welcome its challenge. It seems
ity.
Our future
Western
no
world
great danger if this
and breadth of
to
and that of our
clearly ira
seems
grow
on
a
maturity
vision can continue
wide front.
*2
(1350)'
The Commercial and
Financial Chronicle
.
Thursday, March 26, 1953
/
Robert Wilson
Opens
'
DENVER,
Colo.
Robert
—
W.
Mutual Funds
Wilson has opened offices at 1717
Colfax
East
investment
an
son
was
Mr. Wil¬
business.
formerly
conduct
to
Avenue
officer
an
By ROBERT R. RICH
of
Hicks, Wilson & Co.
Dealer Network Proves
Flexibility of Securities Field
The
flexibility of the securities of its own organization and dealerbusiness in meeting new condi¬ salesmen.
tions
after
years
of drought is
Developed along the service ap¬
well illustrated in the cooperative
proach to the sale of Mutual Fund
NATIONAL
SPECULATIVE
venture
SERIES
j
MUtito
your
dealer
the
their
sales
the
aegis
of
Kidder,
Mutual
Today, when
RESEARCH CORPORATION
Established 1930
120
Broadway
.
to
become
■minsi«iiiiiaii>i
a
mutual
Peabody
has
advertiser
in
funds
been
The
a
cial
&
other
Financial
business
As
pers.
from
and
and
received
are
cities
pa¬
where
"K.
a
cooperating dealer, these
leads
are
immediately
passed
along to the dealer for local fol¬
1928
Prospectus from
low-up.
Generic
litera¬
At the
dealer's
3, PA.
been
tual
Fund.
the
to
cooperating
to
wade
ager
each
been
through
mized
vo~.
un¬
Fund's objectives,
a
Corporation, during one of Kidder,
Peabody's "Your
Money at Work" Sunday radio broadcasts.
Kidder, Peabody econo¬
Mu¬
have
luminous literature to gain an
derstanding of
potentiali¬
leading industries with Milton
Fox-Martin, Man¬
of Kidder, Peabody's Central
Mutual Fund Department.
Here,
Mr. Fox-Martin (left) is shown
with William A.
Parker, President
of the Parker
ties in America's
need for
a
Prospects
compelled
the time«bf mutual fund
executives and on the time and
its hundred-odd
cooperating dealer group by making
ready to broadcast, available to
the cross-countrv dealer'
on
of
money
records,
network.
is
.
management,
performance
features.
satisfy
To
"K.
P."
the
one-page
same
referred
KIDDER, PEABODY BROKE INTO NEW SALES
GROUND whefc
it began its radio
series, "Your Money at Work,"
enabling millions
of listeners from Maine to
Virginia to hear mutual fund executive^
at first hand as
they discussed business and investment
imprint.
own
There has long been
concise information on
conceived
time, "K. P."
standard
writes a letter to the prospect ad¬
scheme
vising him that his inquiry has
and
investment dealer
PHILADELPHIA
Chronicle"
magazines and
inquiries
towns
P." has
or
counsellor.
invest¬
as
to
size,
format
and
color
scheme; and is also available for
the
New
"Times," The New York
"Herald Tribune," "The Commer¬
your
ment
the
and
an
Depart¬ ture has been
developed by Kid¬
der, Peabody to give the service
dealer is invited —or investment counsellor—im¬
York
FOUNDED
insurance
"K.
a
Kidder,
consistent
.wj
life
counselling methods of
Funds
or
reorganize his
selling program.
OlflrWELLlNGlON
n...
'fe>
selling
Peabody's
are
combination of the techniques of
a
P. Cooperating
pression.
This
basic
literature
Dealer," he first receives a binder consists of a
simple "Guide To
containing samples of all of K. Mutual
Fund
Investing,"
sup¬
P.'s
Mutual
Fund
Retail
Sales
ported by a folder entitled "What
Service "material, the "bible" for
Experts Say" and the foundation
the organization
that is bulging of
any successful solicitation, an
with invaluable material enabling
:ITncome Planning Guide."
This
the dealer to organize immediately
literature has been standardized
j
New York 5, N. Y.
•
shares, "K. P.'s" sales methods
cen¬
sales
ment.
NATIONALSECURITIES &
securities
country to
development
laboratory work under
and
Central
or
130
over
across
tralize
fuilT
INVESTMENT
Prospectus from
of
dealers
this
need,
produced
and
"Highlights"
size, form and
in
to
...
:c
and
insure
.
.
.
color
readership
understanding of Funds. With
use
by dealers, but, the Key to
Prudent Investing (with or with¬
out the dealer's
imparint) fills the
desire on the part
oi+jnany dealers
to have
newsletter of their
a
THE
QUESTIONS, "Should I
in¬
in
vest
common
stocks,
and
when?" could have been
correctly
answered "Yes" and "Now" at al¬
own
most any time
during the last 20
fortiiy a personal
years demonstrates the newly re¬
relationship
with
their
organizations,
"K.
P."
X3." feels that his financial affairs
customers.
leased
"Manual
of Data
for In¬
has developed Highlights on more
Even in the area jof
are
better handled locally.
"K.
county fairs, vestment Men" being sent to in¬
than
30
leading
Funds.
These
J." cooperating dealers report that
Kidder, Peabody thas designed, vestment dealers
b.y Hugh W.
Highlights are being used success¬ built and
hese leads are among the best
"gone on the road" with
Long and Company.
fully by the firm's own offices and an exhibit that
is-available on a
,hey receive.
by cooperating dealers.
Tracing performance over the
rental
basis
to
Kidder, Peabody has found that
any
interested
dealer
in
ecuring
is
...
Institutional Growth Fund
lead
a
only
incidental
.
or
.
prospect
beginning
of
with
Group
the
salesman's
used
)e
interest
alive
and
to
verbatim
by
dealers,
or
idapted for special programs
"ogether with full instructions
.
how
19 RECTOR STREET, NEW YORK 6, N.Y.
Prospectus
may
the above
be obtained from
or
these
.
with
ers
when
to
on
cooperating deal¬
advice
to
dustry
to
as
how
The
"K. P." writes and
The
Fund
.
.
a
Fund
Mutual
A
ful
plus
Retailer
in
by
de¬
issue
one
New
York
dealers
Data
unique feature,
particularly use¬
distant
Sheet.
of
resume
from
This
is
objectives
nent statistical facts
met¬
a
and
on
weekly
perti¬
than
more
40
dealer.
Best
operation,
to
in
appear
full
make
network
them
of
An
original feature of "K. P.'s"
Retail Sales Service is its
program
Kit.
After the In¬
presentation
the
Planning Guide
dealer
is
prepares
Mutual
received,
a
Funds
recom¬
program
utilizing a binder and forms de¬
signed to present his recommen¬
dations
in
easily understood
with
guage
lan¬
distinct professional
a
flavor.
In
forts
in
the
its
of
areas
and magazine
Policy.
of
sales
dend
aids
include
dividend
payment
periodic in¬
dates,
automatic
a
summary of
reinvestment
of
divi¬
ber of
Information, which is
pocket-size
and
figures
Funds.
compilation
on
Kidder, Pea¬
with
one
sponsored
of the mutual
by the Long
dealers and
vestment at various periods in the
two
decades; but reviews the
Hughes, an adver¬
tising and sales expert, when he
causes
approached them with the idea of
testing a brand-new direct-mail
throughout the period.
piece, carefully developed to ad¬
here to the high standards of con¬
the
servatism
shocks
mutual
the
that
for investment
beset
From
necessary.to the sale of
fund shares by Kidder,
the
the
early
of
pit
of
markets
depression
"thirties"
war
and
through
readjustment,
Peabody, and yet designed to pro¬
duce a number of
quality leads.
Kidder, Peabody quickly said they
would
simist
be
than
more
behalf of their dealer
be the
less
willing,
could always have found
ample argument for the claim that
"just now things are a little too
on
network, to
testing ground for the idea.
The result? For
than
an
five
hundred
in
a
for
stock
common
about
half-
portfolios.
the
future,
the
Long & Company has
Hugh
come
more
a
of
handy
facts
than
70
It took the firm's research
Fundamental Investors, Inc.
offices
Fox-Martin
Diversified Common Stock Fund
industry and enlarge the pub¬
understanding
of
Diversified Growth Stock Fund
Mutual
Funds.
7*
and time in this
for
&
:|y
".
...
:S;:V!
Diversified Investment Fund
of
effort, its
radio
tran¬
scriptions is negligible. In
radio,
in every other
phase of Mutual
Fund
promotion,'"K. P." strives for
Manhattan Bond Fund, Inc.
as
the serious
approach to the serious
investor
believing this to be
.
.
.
sound
approach to the- real
market for Mutual Funds.
Another
the
Service
important
is
a
feature
monthly
for
regular
mailing
.1
%
YOUR
ON
LOCAL
THESE
MUTUAL
INVESTMENT
FUNDS
DEALER.
HUGH W. Lorn ANB COMPANY
Incorporated-^
■San Fraiicifco' £
cus¬
department a year to develop this tomers and prospects. Many Funds
helpful sales piece for the benefit produce excellent
newsletters for
OR
,..
news¬
to
AVAILABLE
FROM
of
letter, the Key to Prudent Invest¬
ing,
'V .t»h0>S;#ECt%SES
Westminster
in¬
While making no representations
dollars,
Kidder, Peabody received
dollars
uncertain"
vestment.
expenditure of
discussed,
length, various phases of in¬
vesting to further the cause of
lic's
in
the
fund, Fundamental Investors,
as the manual
shows, built a good
record of performance.
Yet
throughout these years the pes¬
at
the
many
uncertainty
securities
newspaper
branch
broadcasting.
or¬
ganization, the manual records not
only the growth of a $10,000 in¬
Wendell
has interviewed some
30 heads of
Mutual Funds and has
the
plans for leading Funds.
Perhaps "K. P.'s" most ambitious
undertaking is its recent Summary
of
of
advertising, "K. P."
charge to dealers
summary
of
vestment plans, and
past 20 years of
funds
evidence
pioneering ef¬
money
useful
and
body's open-mindness in accepting
and
developing n^y sales ideas
was their
willingness to cooperate
million
additon to
ment
schedule
co¬
operating dealers.
piled in accordance with the State¬
of
the
journals, the firm
the
Although Kidder, Peabody
Co., has invested a great deal
Other
it
to
inte¬
an
leading Funds, with up-to-date
offering price and yields com¬
a
ait—
newspapers and
for local
Department.
which is
build
example, recently conducted a radio series
case
history —"Your Money at Work"—which
of the senior has been adopted by quite a num¬
ropolitan areas, is "K. P.'s" week¬
ly
iMrtu.
of
storeroom
a
articles
available
in¬
of
to
for
P.'s"
"K.
completely
to
Fund
One
detailed
a
on
many current and
Retailer,
Funds
one
the
ideas.
sale made
salesmen
and
within
sales
contains
of
and
get best results
.
useful
Fund,
find
time-consuming
prepares reprints and
mended
passed
velopments
prospectus on Canadian
pertinent
ire
local dealer.
obligation please send
dealers
many
and
P." provides
come
which contains information
■M •
"K.
may be used.
Also, direct mail campaigns for
securing interest in Mutual Funds
Each month
no
.
on
letters
distributes
•BITUMEN: At
Because
difficult
may
(Mutual Investment Funds)
LTD.
Fund's
wholesale
work
support the salesman's efforts. By
;rial and error, direct mail letters
lave
been developed which
Shares
HARE'S
the
of
prospect's
Distributed by
a
of
assistance in the way of order
effort, "K. P." has de¬
veloped an integrated direct mail forms, post cards, questionnaires,
referral blanks and so forth.
As
Hollow-up program to keep the
insurance Group Shares
of Institutional Shares, Ltd.
.
the
"K.
personal
Group Shares
Stock and Bond
town—because
assistance
out the details
"campaign" to convert the pro¬
Mutual
Fund
spective buyer into a client. Co¬ grated
(formerly Aviation Group Shares)
Bank
his
the
at
Parker,:Btkaheth
New jersey'/
W.
forth
Volume 177
of
free
our
Number 5206... The Commercial and
enterprise system have-
pot been limited to the economic,
social
Jas,
and
political freedoms..
stocks.
Investment
donbtedly continue .to provide
am-
jjjple
arguments for the pessimist.
The manual should, however, prodde food for
thought to the
aver-
ige man who asks "Have the risks
>f statistical
Stock
and
in
lating
each
of
those
international
years,
and
re-
national
ment-
MASSACHUSETTS
niAkkACiiiJkiiiiik
1953
to
Stock
three
Tnvp«;tnr«;
investors
Fund
months
increases
reports
ended
in
total
Feb.
.
Inc
Latrobe,
>
ment of
g
a
relating
28,
fiscai
Gen
policy*1
turn
to
16,377, represent-
ssr svke awsa
emioi
xxrere
i*7 ck
nor
g
^
At
the
time last year the
same
Fund
had $34,430,941 in total net
assets, 1,964,662 shares outstanding, and 13,346 stockholders. Net
asset
value
Feb.
on
29, 1952
was
$17.53.
Stockholders of
will
receive
vestment
share
income
of
14
Feb.
from
27
in-
cents
per
payable March 2o, Lie 81st
consecutive
the Fund.
the
record
dividend
a
dividend
The annual
stockholders
1 und's
declared
meeting of
will
offices
in
by
be
the
at
Boston
on
May 12..
Feb.
in
the
Fund's
during
the
quarter
invest-
ended
28, 1953 included:
carrier
*
corp.
internau-l
Louisiana
McGraw
_
__
Bought
i3,ooo
__
Celtacotton
Land
&
Products
3,000
Expi.__:—
io.ooo
E.ectric co
Minnesota
Mining & Mfg. co.__
skeiiy
oil
Texas
Pacific
co.__
United-Can*
governments
tionary
done
ever
4-9-53
soj
6,ooo
CorpC
si.rso.ooo
company—
Sold
Natural
Motors
Gas
Co.
rights
has
High tax rates
en-
gender inflation, wasteful spending by individuals and governments
The
and
dishonesty
people
of
this
present
30,000
Acceptance Corp.—
the
financial
chronicle)
Joins Chamberlain Staff
(special
infla-
nation
red
t
w
315
the
is
chronicle)
Minn.
Harvey L
connected
now
Chamherlain
East
fr
due
due
1-8-53
$1,150,000
4-9-53
Business
AMERICAN
reports
that
Nov.130,
1952 to
folio
issues:
Sfcotia
the
the Bucyrus-Erie
the
following
Province
four
Tennessee
4V8/1973;
Gas
Western
Railway of Alabama 4^/1958
The
common
stocks
of
Electric
Auto Lite Company and Minnesota
Power
&
Light
eliminated
the
were
from
Company
the
were
portfolio,
following
bonds:
as
Co-
lumbia Gas System 3/75A; Pacific
Gas
Electric
&
& Tel
3/83; Pacific Tel.
318/87' Southern Bell Tel
& Tel
2"g/87- Standard oil (N J.)
2%/74:
Union
Electric
(Mo.),
\AA*
(special to the financial chronicle)
KANSAS CITY, Mo—Albert M.
Administra-
Kilgore is now with Merrill
Lynch, Pierce, Fenner & Beane,
Specifically the Republican 1003 Walnut Street,
and ^effectively to rethe bad fiscal policy of 20
It
Two With Waddell & Reed
Resolved, by
Organizations
Session;
"(X)
in
Na-
Assembled
in
Net
on
a«ets
Feb
28
ner
share
compared
three months earlier.
were
50.4%
were
$4 03
with
$4:02
These assets
49.6% in cash and bonds and
in
common
stocks
on
Feb.
28, 1953 against 50.1% in cash and
bonds and 49.9%
on
in
common
stocks
Nov. 30, 1952.
implied
Federal
any
opposition
Trade
more
to
expect
despite
mergers,
and
become
can
see
the
by
Commission.
At the current time, about onethird of all industrial
in
the chemical process field.
Some of the larger companies ap¬
cur
proach
the
in
mergers
certed
matter
a
of
business
of
manner
con¬
a
attack,
considering
such
moves
an
important aspect
of
commercial development.
Execu¬
tives, department heads and con¬
often
and
such
scent
conduct
possi¬
negotiations
Reasons for Mergers
for
reasons
acquisition
ones
are
introducing
new
product, namely, the ex¬
pectation of healthy expansion at
better
earnings.
Diversification
and integration are primary mo¬
the
on
while
part of the acquirer,
taxes,
operating
the
opportunity
within
(Speclal
of
stronger or¬
ganization, and lack of operating
cash, motivate most of the ac¬
quired firms.
had
considerably previous
quisition.
The
&
with
Dohme
into
expanded
the
to
merger
Merck
ac¬
of Sharpe
is
another
good example of vertical integra¬
tion.
to
The sale of Kolker Chemiciil
Diamond
Alkali also falls into
this category.
,
Miscellaneous: Within the fore¬
seeable
future,
merger
of
panies
who
we
several
product
lines
see
a more
./a
com¬
combine
can
products and sell
may
dyestuff
their
complete
efficiently.
Very oft^n, a company is acquired
merely because it has a tax loss
This
carryover.
often
more
more
usually happens
smaller com¬
among
panies since it has little effect
large company's earnings.
a
smaller
of
the
companies, taxes
on
With
are
one
most
important considera¬
tion. Because of high taxes, many
small chemical makers (like their
large competitors) cannot expand.
They do not have (or want) large
debts.
It is easier to
sell out, pay
only
a capital gains tax, and be
sheltered by
the security of a
large corporation. This is particu¬
larly true of one product (or
product
line)
companies.
Very
often, a management contract
be~ negotiated in the process.
can
a
Diversification: Deere &
going into fertilizers as a
new
venture. The company,
by, should get
of
an
Co.
is
brand
there¬
taste of thq head¬
a
starting
a
business
new
This should provide
interesting comparison
to
the
Deere management on the relative
advantages
In
cases, the value of a
is hard to determine for
some
company
tax
purposes.
Special difficulties
thereby created in family cor¬
porations and estates. There have
of mergers
start¬
vs.
W. R. Grace & Co. is trying
to diversify-jDoth through its par¬
ticipation in the Davison Chem¬
The
Fin<ncial
ott-v
ical Co. and the brand
new
Grace
Company. In the first
case, Grace is enlarging its agri¬
chemicals
entering
Canfon aS7a'mes rStowers
br,Tr,xn(h Sdpii
S
Se fo?2 Ba^tooTe
Av
'
Baltimore Avenue.
M
tr
^
nue
'
while
the
with
catalyst
the
Grace
Company, they
tablish
from
basic
a
the
Chemical
chemical
ground
and
business
trying to
are
Alkali has made
We
interest
cmonicie)
t\/t^
been
up.
es¬
business
Diamond
offer to Belle
an
in
cases
have
been
sold
son
than
the
the
bank
and
which
which
companies
for
more
no
rea¬
cash
they have in
their liquid assets,
otherwise
could
be
not
withdrawn by the former owners
without paying a prohibitive tax.
up.
cultural
t0
ttaatcao
askifor the provision
redeemable currency at
chemicals
Mathieson
on
a
tives
agricultural
which
open
Chemical
De-merging
In
considering, acquisitions and
mention should t»e
mergers,
some
made of
moves
rection.
Chemical process compa¬
nies
somehow
of
di¬
usually not adverse to
and
acquisitions,
but
are
mergers
rid
in the opposite
are
very
business
reluctant to get
which
is
of
no
particular help to them. However,
in
instances
cannot
where
a
company
the time necessary
devote
to
properly manage a subsidiary
presumably
operation, or in those cases where
for even the fullest
development of
yalue_
ST. LOUIS, Mo. - Russell J. chlorinating methane. These ex¬ the potential of one product or
"(2) We ask for enactment of Leonard and James L. Morgan amples indicate the wide interest line will not retunf as much as if
in diversification occurring today.
such efforts had been devoted to
necessaryGold
Standard are now with Slay ton & Company,
The concepts of spreading opera¬
other business, it is advisable to
iegisxation
Repealing
the
laws Inc., 408 Olive Street.
tions
too
ythin, however, do not abandon the
enterprise.
'
seem to worry most companies too
The Celanese Corporation and
''if1!
much.
The
example
of
the
Heyden
Jg
the Heyden Chemical Company
Chemical
Company, where one
are good examples of firms which
man held a string of only slightly
J
J
have divested themselves of sub¬
intergrated enterprises, has ap¬
sidiary ventures. Phillips Petro¬
parently
been
forgotten
in
some
and security are by no means synonyq£
gold
$35
an
ounce", S our
standard
CI
Secrecy
n
a.
WO W 1th olayton Lo.
Of
(Special to The Financial Chronicle)
vs.
Chemical
avail
to
Company,
itself
of
a
process
■
Security
"Secicecy
to
of
some
how closely allied they may seem
those
in
military
or
governmental
anthnritv
UT„
.
.
.
" sef_re,cy operates to deprive public
opinion of
facts which it needs for balanced judgment if
secrecy leads the citizens of our country to feel
smu§ and complacent, when they should be aroused
f
and alarmed, then
secrecy
really damages
our se-
cunty."—Major General Julius Ochs Adler.
These generalizations
are
valid and they badly
need to have wide circulation. The
general's further
equally worthy of respect. The New
"Times" reports them as follows:
remarks
York
^
are
„
jt
.
.
,
#
declared that the contradictory evidence submitted in the debate on the supply of shells to Korea
was 'an alarming example of the way in which
^'General Adler proposed that security classifica'-tions be justified in the light of the larger public
good, that such restrictions once imposed should be
subject to review by competent
persons not directly
concerned with the Administration and that rules
designed to withhold information from the public
should be studied for possible revision from time
to time."
sold
leum
mous, n&imatter
secrecy can actually weaken security.'
27/8/8o.
Tnp
IVLciTlll Lynch Adds
the Conference of American Small
Nova
of
Province of On-
3-/4/1975;
Transmission
three
^eb! 28^1953)
34/1972;
tario
first
added to the port-
was
were
as
bond
Shares Inc.
the
in
common stock of
Company
$650,000
——-
with
promptly
"Therefore iBe
prices
we
from scratch.
tion gave therr¥>a mandate to work
platform favored the provision of
a gold convertible currency.
more
aches
_
Notes
Notes
Go
Avenue
I
in
country
financial
WING
Johnson
When
from
are
to
generally.
Washington, D.7.C., March 23, 24,
and 25, 1953fr.:.*
corp.—re/
........ -
No
WOO
>.5,200
Acceptance
halt
cannot
pressures.
to
.
y
time.
reasonable,
The
Kinnunen and Verne E. Strom
that
tional
sales
Gen.
been-' demonstrated
Business
2,000
Trust
Fastener
due
western
has
1,700
..
Land
Motors
notes
it
were
for
similar to the
MINNEAPOLIS, Minn.—Oliver
"Lacking the automatic protection of gold redeemable currency,
If it
currently high asking
operating companies,
there would undoubtedly be far
more such
activity at the present
prices
with Gibbs & Co.,
now
have Joined the staff of Waddell
text of the & Reed, Inc., Metropolitan Bank
Building,
I
The preamble and
resolution folWws:
and
which result in successful
mergers.
necessary
(special
cycle
E.
Tw° Wi* Waddell & Reed
z.ooo
in.
Gen.
carding out
business
not for the
bilities
8
r
the
the corporate tax bills.
sultants
n
«%
■»■* s"»gold
or
tiorvbefor^-Mrie 3(? uSJ GS1S B~ A-
years.
purchases
Litsas is
present
a.ndr# ^P?°inlme?l
m
verse
company—
of
Monetary cpmmission to aid Con-
electing the
Changes
ments
repeal
gold
gress
p
(Special to The Financial Chronicle)
zens
November.
L
With (jlDDS & Co.
WORCESTER, Mass. —Chris
f»- r-4from, biyning«•«■*
™ins;.
a
"FVntnn
enton.
*X7.
Philip M. MeKenna
a
currency'
capital gain distribution of 35 cents per share paid in
elusive of
T
•
ir}8 to 2365,467, and in number of redeemable^. 4
stockholders to
C
^^^^9
approving 'a'
by
7ack R. Cecil; A. A. Biddle, and
^^9
4
signed
was
Chairman; Herbert Beaner, Secretary; Arthur W. Keller; Louis E.
Thompson; Harold G. Kazanjian;
a reso-
of
changes in the magnitude of
mergers oc¬
resolution
the following: Philip M. MeKenna,
4H
e
u
tution in
series
re
The
jm
Gold Standard
a
Monetary Commission
a
-9 30, 1954."
•■■'■''^9
£ent °f the
Le
of the appoint-
approve
* to aid Congress in carrying out
9 the necessary steps before June
•
■HEg|
Pa* and Presi-
to government
$41,752,272, in shares outstand-
"(3) We
metal
for
assets
net
laws which
Presen^ conflict with the Gold
various
~?* 9,VU.^
*
aMHHHMHHM Standard.
Passed
Growth
Washington, ment of the
in
Wmm?1"
events to the time of each invest-
the
session
Ken
prices in the past 20 years,
results of investments
the
0n March 24' the Conference of presently prohibiting American
American Small Business Organi- citizens from owning gold or gold
f.a 10^s> ho.ding a, three-day na- coins, and the repeal or amend-
W
gives
made
downs
currency.
na
page
Mergers in the Chemical Industry
resolution urSinS return to S°ld redeemable
Passes
M* MeKenna,
founder
of
trends, shows the
living and the course of
of
of Small Business Organizations held in
March 24, under chairmanship of Philip M.
material, the manual
traces economic
ifcost
McKenna'
on
shlP of PhlllP
a
from first
Wm
'
Session
Washington
wealth
worth while?" With
Continued
+jf
.
and
tide' bVhsid?anHfstorvntwUlUt'un°
>een
.
.
National
It
'byprudenUnvestingta
^ommon
»
_
43
(1351)
Small Business Urges Return to Gold Standard
as well, rewarded the average
^capitalist
financial Chronicle
its
eastern
dis¬
LPG
cases.
tribution setup
Integration:
lines
of
been
the
More
vertical
the
along
expansion
have
Gas
pane
sold
the
to Suburban Pro¬
Corp.
vacuum
Eastman-Kodak
equipment de¬
acquisition of Maas
by partment of Distillation Products
Company, or Industries to the Consolidated En¬
purchase of Eston Chemicals gineering Corporation. The latter
by American Potash and Chemical
hopes to increase sales of such
Corp.
The acquired firms pur¬ equipment 3.5 times during the
chased products from the acquir¬
next five years.
Similar moves
ing corporations. In such cases, are noticeable in other industries.
the larger firm expanded their
The thing to remember is that
operations by moving their own if a
secondary operation does not
products closer to the ultimate
permit a company to concentrate
consumer markets by taking over
on
its important lines, it should
processing facilities and complete
sales setups and distribution chan¬ seriously consider liquidating such
the Victor Chemical
the
nels.
*
the
latter diversified
where it had
no
into
a
field
real previous ex¬
an
enterprising
this
merger
can
some day be classified as a ver¬
tical integration, since the parent
company can be expected to pro¬
duce more and more products for
With
perience.
management,
the drug division.
of
as
Squibb
since
can
it
is
a
The acquisition
al^o be considered
insurance
an
subdivision.
a
Squibb strengthened its man¬
agerial and raw material position
by selling out to Mathieson, while
field
by
Mathieson,
very
different
Traditionally
been
in
a
sound
acquisitions have
of expansion
way
the chemical process field.
stead of waiting seven years
test
a
In¬
from
tube/to tank car (if at all) for
new
check
product,
the effecToHf
with
tax
a company can see,
in
advance
field.
Coupled
calculate
and
new
advantages, the trend is
expected to continue, particularly
for
may
middle-sized
find
it
companies
who
the most expedient
*44
(1352)
The Commercial and Financial Chronicle... Thursday, March
Continued
from
6
page
months reached
it
Toward Stable
In
ground that
it has
the
results.
desired
true
that
not
not produced
While it is
much
as
has
been
The
den
high
government
taxation
In
period, aid
vent
in fact
tion
aid
to
Disequilibrium
Western
Eu¬
At this point, we must ask our¬
selves whether we have reached
This result
was
a
in
enabled
these
coun¬
get
sustain
have
such
volup
Is the dollar short¬
low
here to stay? Can we never
give up foreign aid if we wish to
mitted
o
could, if they
lowering living standards.
ever,
age
production rolling.
More recently, our aid has per¬
in
dollar
imports and make their
currencies convertible without
period of permanent disequilib¬
rium in trade.
now
in Trade
Permanent?
pre¬
accomplished and in addi¬
our
tries
to
reduction
in
Japan.
Is
postwar
necessary
was
standards
and
rope
early
disastrous
a
living
the
world
action
(1)
in-
«:prinii<rrtek<5*Ihpran«wvf
thp
of
outside
serves
now
gold
and
the
der
trade
Conservative
and
dollar
re
United States,
internal
Of
have
We
the
a
fi-
to
make
possible
^
„
trade
an(j
(2) The establishment of ade<luate currency reserves; and
The
drastic
reduction
of
(3)
the
otheTtrad^barriers.
WA,
depends on an aggressive
imaginative program of in¬
In
reasons.
United
States
world for
the
essential for
the
first place,
rapidly be-
is
coming dependent
the
of
Convertibility of currencies is
the product made possible by
or¬
and
ternational economic development.
From the point of view of the
two
and
free
a
expanding world economy. In the
long run, the existence of world
tion;
tar^s
discussed
relatively, short-run
nancial policies preventing infla- United States, this is
How¬
would
level
free
Lung-Run Aspect
far
steps which must be taken in
growing world economy are:
is
m?ahfVt™
the
normal
of
Thus
some
the conditions
the reestablish-
summarize,
ment
..
of
-
Normal Free Trade
needed to promote
Currency
Because world trade
tions
1
Conditions Needed to Restore
To
The
appropriate devalua-
an
tion of the currency,
over
,
and
with
ures
it
Reserves
heavy bur¬
savings and investments of
on
were
combine internal monetary meas-
programs. Never¬
Question of
must recognize the
we
exist
not
theless, it is an improvement
the recent past.
accomplished as we had hoped, spending.
nevertheless, the results are im¬
pressive.
without
goes
not for our aid
Free World
a
Of course,
saying that this
situation would
Prosperity
annual rate of
an
than $3V2 billion.
more
26, 1953
the
on
materials
raw
rest
of
substantial share
a
which
we
require to support our vast production. American know-how and
these three conditions and must private capital has an important
follow—not precede them.
role to play in developing foreign
Britain's gold and dollar reserves
Thus far I have listed corrective supplies of raw materials.
Our
are now equal to
only 2y2 months' measures in the abstract without productive capacity is growing so
large and
ticipate in a rearmament program, widening chasm between United imports as against 9 months' in reference to such practical prob- raPidl,y that when the rate of our
In France, reserves today lems as timing and synchroniza- military expenditures starts to dedesigned to meet a common threat, States productivity and that of 1938.
also equal 2V2 months' imports but tion. It would be a great mistake, cline, we will need to develop
without sacrificing
standards of the rest of the world as clear proof
Hiving. We are still in mid-stream that a permanent dollar shortage France's reserves in 1938 were for example, for Britain acting new markets both at home and in
equal to more than 2 years' im- alone to free her exchange by other parts of the world to abin this program but it is clear that is inevitable. If this were
so, the
European rearmament without our economic plight of the free world ports. With reserves at this peril- making her currency convertible, sorb a share of our production,
jhelp would never have been ac- would indeed be gloomy. But this ously low level, a mild United She should only do so if she were These new foreign markets will
States recession of the 1949 va- assured that similar steps would exist
only if there is a rising
flcomplished.
theory is based on a fundamental
It is significant that in none of fallacy, a fundamental misunder¬ riety could wreck a move toward be taken simultaneously by other standard of living in the underthese countries where we have standing
Falling prices in important trading nations. If she developed areas of the world. By
of
the
advantages
of convertibility.
Western
sizable
jhad
Communist
Europe
aid
taken
and in several
have actually shrunk
.since our aid began.
not
the
basis
succeeded
parties
appreciably
have
we
in
producing
stability
This is due in large
for
economic
and progress.
the fact that interna¬
tional trade is still fettered.
to
measure
factors Preventing Restoration of
'
J
f
'. i
*
'
Normal Trade
♦
'
*
k
1»
•
£
'
..
~
;
"
-
,
'
*
* A
A return to what before the
had
we
to
come
look
r,
war
upon
as
normal trade conditions has been
prevented by a number of factors.
our
the
international
to pile
then convert the sterling into dolso that at least lars
thereby solving their own
mild recessions or other disturb- dollar shortage at the expense of
founded
are
symptoms of rising
pres¬
familiar
prices, rising
costs and unbalanced
governmen¬
tal budgets. Such conditions make
it
difficult
for
exporters
to
sell
abroad and increase the incentive
of
importers to buy from countries
which
have
not
experienced
as
much
inflation.
Most other na¬
tions have had more inflation than
the United States with the result
labor
is
This
basic
eco¬
nomic concept states that each na¬
tion " should 1 concentrate
on
the
production of
those
things which
produce most economically.
United
shift "the
States
against
more
of
the
tions.
be
could
balance
Monetary
large enough
quickly
trade
non-dollar
accommodated
without
would concentrate
of the
the produc¬
on
things which she
can
be
can
crisis.
they
have
large
deficits
in
problem
sterling
of
balances
the war.
"
the
purchases from Britain
up
sterling.
They could
Great Britain. This is
one
of the
factors contributing to the failure
held
day, it-is of the utmost importance
that any move toward the freeing
of trade and convertibility should
be assured of success. If it should
fail again, it would probably discredit the whole idea of convert-
ibility for
it
must
from
that
how
over
likewise
and
be
when
recognized
tariffs
and
abandoned is
are
efficiently. ' Thus,
Thus, despite the fact that the all-important. ,• Any reduction in
the way is left for the other na¬ \
tions to sell their products to the outlook for the convertibility of our tariffs is going to harm somemost non-dollar currencies seems one.
more
efficient nation, and trade
Nevertheless,
governments
works to the advantage of both. brighter today than at any time-in -must be guided by the overall inthe postwar era, a lasting solution terest of the
country rather than
We can say,
therefore, that the will not be found so
long as gold by the interest of any individual
traditional maxim that all nations
and dollar reserves are so low. A or
group. In times of full employgain from trade still holds in the
permanent solution will also be ment, such as the
present, tariffs
modern world. The obstacles to a
lacking
so long as the European could in all
probability be reduced
free flow of trade between Britain
nations are dependent on Amerdrastically
and
rapidly without
and the United
States, to take a ican aid for
concrete
from
example,
do
not
result
bridging the gap be-
tween
the
differences
value
of
our
exports
measured in
.
States
are
prices,
prewar
now
there
90% above
have
been
ports from the United States only
(1) by increased exports to the
producing
ployment
is
In
tured goods.
these
crease our
million
a
this
to the
Daniel
Bell
report
Mri
by
in
of
support
recommended
reductions
that
drop in emmajor industrial
a
recent
a
President
which
raw
areas
dollars
own
tariffs
substantial
manufac-
on
The report indicates
reductions
would
in-
imports by $500 to $700
Mr. Bell estimates
year.
needed
materials
to
can
we
the
earn
their
support
development.^ Thus, capital
investments
purpose of
of
and
will
the
serve
dual
bridging the dollar
gap
providing future markets,
it is true that the
prospects for
attractive
the
capital
investment} in
highly
more'
industrialized
portions of the world, other than
the United States and
Canada,
nqt as great at the moment
the
under-developed
materials
raw
developed.'
iri
where
areas
nroduction
are
as
be
can
The' industrialized
will
arPa<,
neverthelpqs
elsewhere.
to
access
and
to."
states
They
new
also
hcnpfit
of
have
supply
markets. ir United
trade' with
to
will
sources
new
England 'and
Europe before the
ried
war
was
car-
large extent on a tribasis.
This pattern of
on
angular
a
trade
should be reestablished
to do
so
but
it is necessary to expand
the economies in the under-devel-
0pecj
areas.
a
*
serious
a
or
dislocation.
thesis
supplying the
require, these
SfSSI^rlw IriaSs
many years.
rtrade restrictions
\
most
1947 to make sterling convertible. Even though underlying conditions may be more favorable to-
unfunded
overseas
surround the currencies and trade
of the world.
It must be recog¬
their
in
'
in productivity
and the value of the goods and
physical units of out¬ services we
buy from them.
To
payments or, to express put. Rather the difficulties arise
get along without United States
it in more familiar
terms, a dollar because of purely monetary con¬ aid and without
reducing living
shortage.
siderations, such as inflation, or
standards, the rest of the world
because of barriers such as
Dollar shortages breed the
quotas needs to earn more
myr¬
dollars. Euand tariffs. Although prices in the
iad controls and
restrictions that
rope can pay for expanded
imUnited
that
cut
to
serious
a
acted alone, other nations might
na-
need
reserves
to the flow of trade
ances
once
Adequate
reserves
are
even
it can
more important in the world econIn so doing, by means of
trade, each
omy today than in the prewar penation will provide
the highest
riod. The size of the reserves must
possible standards of living for its
be greater both because currencies
citizens. What is not always real¬
have depreciated in value and beized is the fact that even though
cause, there
is a general lack of
one nation could
produce all goods
confidence in the stability of curmore
economically than another,
The
British
have
the
she can still gain from trade. She
added
Jhaye yielded to inflationary
This has
of
on
countries.
produce
in varying degrees.
with it the
division
the premise that there
differences in productivity be¬
tion
sures
Some people
the
to
trade.
In point of fact, the
ageold, but -still valid, principle of the
Most of the countries of the world
brou&ht
exports?
pointed
tween
Yes, aid has helped; but
still
have
control
Communist
the
par¬
programs
parties
4>f the government,
countries
to
i
naf!r^LLicnl ivLfn"
^oc?P A"
f
TT«HJri^ qL""
vestment of private United States
caPltal. V1 *he under-developed
areas j® highly. advantageous.
It
1S, go.od fl:on),a humamtanani point
ot yie,w.,ln t^t it share with the
world the fruits of
res
prosperity.
own
our
It is good from
a. political and military point of
view
that prosperity creates
conditions necessary for polit™U* $
strength. The need for raw matefials is 50 Sreat that it is of vital
importance ?hat governments
around the world adopt policies
even
greater price; increases in
nized, however, that trade restric¬
United States; (2)
by increased that as a result there might be \he
the non-dollar areas. In the Unitions reflect not
dollar earnings in third areas; or
only monetary
60,000
to
90,000
workers
who lcal
ted Kingdom, for
example,
prices
imbalance; they can be also a
(3) by increased United States would be
symptom of domestic political ex¬
pediency. On this score, the United
States
guilty
is
as
unfortunately quite as
the rest despite the fact
120% above the prewar level.
are
They
still
are
countries such
that
the
higher
as
United
in
France.
have
we
far
States
has
had
less
„■
In the field of
production also,
forces have been at work
against
the restoration of
normal
.Domestic
goods in
production
most
of
the
of
■outside
the
United
Canada is not
trade.
civilian
free
pace
and
For real
eco¬
progress, the volume
of
production and trade must
expand
faster than population so that real
decline
a
living,
m
rise.
Our aid
has succeeded in check¬
program
ing
can
but
it
in
the
has
standard
not
succeeded
raising living standards.
we
are
far from
of
Thus
having achieved
our
goal of economic progress and
stability with free markets, for
goods and capital.
Controls
trade
and
restrictions
on
are
among the basic reasons
for the lack of
economic
the free world.
them as
m
restore
possible
expansion
We must reduce
Economic
and liv¬
At the same
Improvement
in
Western Europe
At this particular
moment, pro¬
present jobs.
axiomatic.
to
come
sooner
.
The
sooner
realize
we
are
these facts,
likely to take
from
This would
their
mean
1
out of every 1,000 people at work
in the
United
States.
present demand
for
With
labor
the
and
a
the necessary steps toward
solving
the problem.
We must recognize
that
United
States
tariffs, and
growing export market alternative
jobs would be available for these
customs
location
restrictions
offer
one
of
the most important barriers to the
expansion of world
to
are
trade.
more
absorb
our
workers.
Even
of
.a
this
is
undesir-
Other
able but if it could assist materially in freeing the trade x>f the
if
world and thereby in raising liv-
us
standards.
nations
must
adopt
world.
-
it should be
our
firm policy
against i inflation, ■ to make their
exports more competitive and to
achieve
than
in
now
any
trade.
a
earlier
Evidence
which
the
we are
seeking to build up
military strength of our allies.
The program can best be tapered
off bv shifting the emphasis from
of
postwar
this
is
.
•
pe¬
cause
proven
over
the
*
past, six
me
reiterate
The welfare of the
larger
ship.
u
i
«-va
ts
'o
unemployment and hardHowever, these nations can
the
Wxtnout
-
necessary
unuue
t
?uuate gold and dollar reserves in
of
nmvhnQM
wp
Hni
nav
we pay dolfinance production of de-
items
in
japan for
fh
Western
use
Europe
either by
f
our
ni
p
those or our allies.
adjustments These dollars can be used to buy
naictsnip
if- iney
and
Under the program for
proportion
off~shore purchases,
and
stablflty5 (2) Takf
positive steps to reduce tariffs and
other trade restrictions; (3) Encourage the establishment of ade-*
.
balance in their foreign
purchases.
some
instances where
The domestic and foreign
a
off-shore
,.
shipments from this country to
proportions, corrective lars
result, world
in much better
shape monetary policies would have to fense
by the export of gold from Fort
make
time, Knox
In
when
a
gerous
trade is
points.
States will have much to do with
making possible such prosperity
although the full cooperation o£
other. nations is essential. The
important steps to be taker}
by
United States are (1) Fur-?
sue. flscal an(* monetary policies
designed to promote Economic
make it
of price levels.
a
conclusion, let
jective to expand trade rather
than to rely on aid
Nevertheless
it is equally obvious that it would
we
inflation has already reached dan-
As
In
these
exports to them unless
flation under control. For the first
time there seems to be a
flattening
-
Basis of Stable Prosperity 1
economic policies of the United
Thus, any adjustments step in the reestablishment of norinvolved in restoring normal mal trade, will not succeed if it is
trade would
not, as in the early carried out as an isolated policy.
postwar period, bear down too Other steps are necessary. Debtor
living
m-
.
.
long-range ob-
now
on
.
.
while.
But reducing tariffs and trade not be to our own
advantage to
restrictions,
while
an
essential reduce aid substantially just now
severely
.
without subsidy. They cannot afford to remove restrictions on our
production per person, that is the
standard of living, is at least
equal
What is more, for the time
being
at least, most Western
European
nations have brought domestic in¬
international
United States calls for stable prosperity and a rising standard of
exports ing standards, it would be worth- living in all parts of the free
to
easier for them to sell their goods
here.
-.
to prewar.
that encourage
vestment. - ;
temporary dis-
kind
duction in most Western
European
nations is well above prewar, and
rapidly as possible to help
incentives that make riod.
rising production
the
they
the
ing standards.
.we
is
countries must sell
shortage.
with
nomic
living standards
the United States but also to other
parts of the world in competition
with the United States.
Inflation
abroad is a root cause of the dollar
world
States
keeping
population growth.
,
This
The fact
relatively less inflation than West¬
economic ern
Europe has hampered Eu¬
excuse for restrictions
than other
rope's ability to sell not only to
nations.
■
that
displaced
investment.
overseas
other
imports from the United States.
the non~dollar areas, and (4) Pur-r
sue
poiicies
abroad
flow
both
which
will
of private
at
and
home
stimulate
capital
to
the
other
countries, especially to those parts
of the world with reserves of raw
materiais
needed
trial machine.
require
tax
by
our
mdus-
At home this may
incentives and other
(1353)
Number 5206...The Commercial and Financial Chronicle
Volume 177
45
types of new legislation.
tant
it will
Will confuse" their peacetime eco¬
Abroad. In this way,- gentlemen,. I be-r ,/'team" are having in finding ways and means of reducing
require on the part of our lieve that the unprecedented eco•: expenditures.' They
are' smiling whenever some One of
government a well formulated and nomic power' of the United States
consistent
these gentlemen say anything to the public about the dif¬
policy executed with can be used to the benefit of oursympathetic
understanding
and selves and of the free world at
ficulties they are encountering, or warn the public not to
of war,
Congress
these matters
taken for
in
this sort of way.
the ranks of their
own
sort of notion about
Government.
tial. There is
able
on
we
in
They will, it
may
be
suspect, quite possibly within
party, who have very much this
curtailing the outlays of the Federal
They will be called
ficult decisions
ernment
groups
granted, have to be prepared to contend with
in Congress, and,
many
Washington and those
whom it must rely for support, do not view
upon
to make very dif¬
really
essen¬
by which the swollen Federal Gov¬
way
expenditure
be brought within really reason¬
can
without
bounds
upon
to what is and what is not
as
no
Let
activity and,
so they hope, the best opportunity
political harvests in the months and,
years to come in reported decisions to discontinue this or
that activity of the Federal Government. This is particularly true when any of the politically favored elements in
the population feel or can be made to feel that they are
the victims of such steps. This responsible officials must
expect. They must even be prepared for difficulties of this
for the cultivation of
-
Administration in
new
eliminating
programs
carried
now
by the national government.
sort from members of their
that
effort.
dently
supported by
budgets
ple.
Let
that
More
Efficiency
efficiency there must be, and the amounts which
could be saved the
taxpayers by getting things done more
^-nearly like efficient private business gets things done are
have
Committee
"the
courage
even
after
; of business executives of
large
;
to the
accrue
public by the influx
Not
from
procedures in the management of the business affairs of
government. Notwithstanding the sneering remarks of the
r
professional politicians who do not want to reduce out-
;
lays, the fact remains that, when government undertakes
to do
something then its operations and the
about
getting things done
or
are
goes
not essentially different—
should not be—from the way
at low levels
it
way
business gets things done
confused between the
are
ics of
Under
peace.
conditions,
invite
of
them stick is much
—and there's the
making such changes and making
difficult than in private
more
rub,
or
at least
one
of them. In
business
business:
a
minimum of cost. Of course, the responsible execu¬
test
be made in
sets. But
<of the
io his
profits which are the
the profits over the years, not
are
one
year,
long
so
as
merely what
can
perhaps by liquidating intangible as¬
the executive is really making
devices and supported by
in important matters.
rectors
cians for that matter—and
Such support
not be
may
the basis for support is dif¬
game
somewhat
new
government
should project
liefs
fears
and
wartime needs.
the time
comes
to lop off
this
greatly
or
that
activity of government. Then it is that those who have
acquired
a
vested interest in these programs of govern-
ment appear
'
in incredibly large numbers and with sur¬
prisingly strong backing; backing which is out of all pro¬
portion to
any
public welfare yardstick. And here it is that
those who undertake real economy
-
show
;
then must show iron determination and
boundless tact and skill in gaining support and holding it.
Battle Lines Are Being Drawn
Lines of battle such
as
these
are now
being obviously
i
cians
—
Washington. There
are
those among the politi-
usually anti-Administration groups
—
who are
chortling over the difficulties that the President and his
However
other
credit
and
should
before
in the last war
be'Jforced
casualty lists.
the
this nation,
which has lifted man's
freedom
very
dignity to tjeighta
and
matched in all recorded his¬
'*■'•••;
tory.
;£lP this
lost because we could,
ppf^see
peacetime habits to
beyond
our
prepare
in advance for what War
would bring?
was
time
T
.
all this
we
could
when there will be no time?
is¬
build
to
and to
out this legislation
at leasf 'a skeleton
force of
personnel capable of be¬
trained
expanded
actual
rapidly in
emergency.
In
of
case
is
There
izing
these
war
have
would
other way of mobil¬
no
nation. Your choice is only
a
whether
be done
you
now
do what has to
and gain all
of
pay
be
the ad-
.Or
preparation.
Train
and women
men
mobilizing
this
with
seg¬
every
serving
for
agency
would
They
months.
eight
say
from1
economy
wait until later and
spend the first four months in in-
tensive study of our mobilization
plans and procedures and the last
May
War
nor
were
in
nor
—
neither
in World
in
War
Korean1 conflict
the
made of our
demands
any
civilian
this
add
I
World
which
population
even
closely approached what was de¬
manded of
our
men
on
the fight¬
there
Really,
Tittle
is
Sacrifices
Asked
gentlemen,
asked
of
us
think
to
phasize,
or
cannot stand alone.
be
both
for
industry,
review
experience
built
and
in
government
agriculture,
defense
up
trained
every
labor,
other
how field.
Later this
preserve
it,
price
would
country a reserve of
the
civilian
much.
is adequate by itself.
and methods
constant
practical
of
men
and
under
be
would
and
No
plans
bilization
their
in
Let me em-
you
mony
week,
as
I understand
will be hearing the testi-
of various members of the
Administration.
Many ;'of
these
control officials are new to Washington,
They are but I have no idea what position they
'wage
parts of the over-all mobilization
will
take
Your
RED
CROSS
In that way our mo-
successors.
by
breaking
months
four
personnel
ing fronts.
so
the
of
ment
j
Now
like to see top-caliber
would
I
Men
the terrible price of a loss of
vital time.
XI'
.,*»•
powers
legislated.
be
to
—
whether
they
have
authority you need.- You may be thought through this most impor-
the
not get ready for
•
needed
plans
the
all
,
lost because when we had
with working out in full
agency
of
survival
determine
It should charge some one
(2)
in¬
or
It*c6tild
All segments of the
special favors for none.
ing
may
will reduce
should be treated alike,
economy
with
our
slow any mo¬
seem
may
or
do not
do—or
of atomic de-
because
necessary
everything
else
whatever
to do.
wages
or
Shall it be written that
doing
for
was necessary
carry
What Must Be Done
enact
should provide standby
It
authority
But we must not
us.
finally
two things:
do
(1)
the
it,
manage
you
and
worl(|
War have
Shall it be written that
legislation.
you
legislation
of detail
thinking
As for the bills before you, none
'
drawn in
economic
our
let this confusion obscure the
appropriate to the functions of government and
what is not, and
.
in government must
good sound judgment in deciding what is really use-
ful and
.
peace-
.
He is certain to be confronted with difficulty
•enhanced when
of
their
into
their be-
the
about
workings
system
whether you
.
that
It
us.
prior- never
Same Mistakes
Not the
.
velopments.
understandable, of course,
men
vantages
to him.
con¬
the infla-
on
price line stable, even while
is
a success
stockholders and di¬
ferent. This is where the businessman turned
a
in
raise taxes.
you
sue
forthcoming from party politicians—or from other politi¬
official must learn
to
try
individual
the
This whips
enterprise he is managing, he is usually largely left
own
to
increases
tax
What you must do
time
tive must consider the morrow. The
commandeering
ities,
control in other
pius
It
a
like
that
that
with
with
powers
is hold
rises.
ordinarily, in
are
dealing
tionary spiral of wage and price
important part at least, dependent upon getting things done
stockholders, and profits
to
and
sumer.
your
organization it is for the most part profit that counts with
directors and
the
on
to
producer
every
pass
is
uncontrolled
prices
higher prices both to the govern¬
of cost.
task
and
taxes
of
mobilization
thinking
or
upon
was
leave
ment
the
But
•
raise
of
near-war
or
war
to
econom-
economics
the
and
war
Controls
you
speed
bilization
crease
'
What
do—will
The Basis for Standby
prices
just
lation.
>
10
page
Korean
two
profits are at stake in this legis¬
proved capacity must come in
from the introduction of accepted business
measure
Continued
outbreak,
what
shown is the right thing
certainly not negligible.. On the contrary the enormousbenefits which should
law
the
and
hope
show
convictions;,
its
of
I
again
short,
will
Korean
into
-
did in the September
you
the
wars
which a decade or two ago
regarded as wholly outside the true
sphere of government.
as
write
purposes
been
falls
this
which only a few years ago would have been
regarded as utterly incredible, and much of the money is
certainly wasted in inefficient performance, and more of
going for
were
which
cost
Administration
the
what
recommends
squeezed from them without crippling really es¬
just plain buncombe. Current talk about
budget plans left for President Eisenhower is equally
without validity. After all, we are today expending sums
-would
a
Courage of Congress
If
sential services is
is
at
wrong
still grows.
the
it
which
War—and
proven
all their
that
Truman,
made at the start of the
were
Korean
each year
More
they will not. re¬
hope
us
peat the arguments and mistakes
great opportunities exist for
notion, so ar¬
President
needles^
such
at
of
start
which *were
II—and
wrong
proven
"tight" budgets, that nothing of consequence
were
could be
War
old Rooseveltian
The
mistakes
the
at
tragic cost to the American peo¬
discouraged. There are many men
and women in this country who wish, yes, insist that pre¬
cisely such steps as these be taken. Nor must officials
constructive
made
were
World
But let them not be
weaken in their belief that
that
they will not re¬
hope
us
peat the arguments and
party.
own
decisions
evade—the
must be made.
expect too much too quickly. But they find their greatest
field of
needs
whether they will face
to—or
-large.
Continued from first page
whether- they
or
nomic philosophy with the
„
firmness.
problem«
must carry on
T
46
(1354)
The Commercial
Continued
from
production
5
page
Industry
mated
The agency said 127,748 autos were built last week, 1,132 more
the previous week and 41% higher than the
90,258 in the
like 1952 week.
than
indicate
they will turn out 3,300,000
in
the first half of this year, said "Ward's" rather than the
3,200,000
projected several weeks ago. They have a revised their estimates
for the first half, believing "more steel will be available" and the
labor supply will be "fairly adequate" in the second
quarter.
"if
The survey results are
contrary to earlier estimates by
and private economists.
At the turn of the year,
gov¬
ernment
they
were guessing that business
capital outlays would be about $500,000,000 lower this year than last.
Continuing to inch upward in February, business failures rose
7% to 691, the heaviest toll in 10
months, according to Dun & Bradstreet, Inc., Failure Index.
While there were more casualties this
February than in the similar month of the previous two
years,
were well below the
postwar February high of 811 which
The
Loadings of
The
in
February's failures climbed
17%
$27,273,000, the largest volume since October.
Concerns suc¬
cumbing with liabilities of more than $100,000 were
primarily re¬
sponsible, rising to their highest level in 10 months.
Failures
were
more
numerous
than
a
month ago in all
of the
major industry groups.
Failures in
1.3%
of
below
in 10 months.
In comparison with a
year ago, casualties this
February were
higher in seven of the nine major geographical
regions; the New
England and Mountain States
ward
the two exceptions to this
up¬
were
tendency.
moderately
street, Inc., reports. \ The total for the
month, covering 215 cities,
$336,391,002, comparing with $315,320,903 in
February
last year, for a rise of
6.7%, and with $306,568,308 in
January, for a
gain of 9.7%.
amounted to
'
Volume of building plans filed in
New York City alone dur¬
ing February came to $27,394,212. This was a
drop of 18.9% from
the corresponding 1952 month
with
$33,765,418, and 4.8% less than
the January sum of
$28,765,075.
Four of the
geographical regions showed gains over
February
year ago, and four showed losses.
Best advances appeared in
the
Mountain and Pacific
regions, up 31.9 and 30.9%,
respectively.
Heaviest declines were in the
West Central and New
England
regions, down 23.1 and 22.7%,
Output Last Week Set
Watch the automobile
will become
plentiful,
says
working,
a
New
industry for the
clue
as
to
when steel
"Steel," the weekly magazine of
metal-
.
fact,^ railroad spikes are readily alvailable.
Demand for structural
steel is
tapering somewhat and one reason
is the
completion of
many defense
trade journal.
building
programs, states this
For the first time in
more than two
years, steel is free from
government controls on
prices.
It is not
expected, however, that
the steel
industry will take
advantage of its reacquired freedom
to make a
general increase in
prices.
millgtTtS"ainiiUal pri?e
-JLjJ?13acts, U.S. Steel Corp. said
AnHnlqln+n?ft
April 1 to Sept. 30, concludes
American Iron
and
P.olicy
announcement
tin plate
and
*2.p2lce
durinS the
Steel."
Steel
Institute
on
other tin
tin
mill
period of from
announced
that
the
H entire
I.c°mpanies having 93% of the steelmaking
capacity for the
industry will be at an
average of 100.2% of
WC? and steel
March 23' 1953, equivalent to
2,259,000 tons of ingots
for castings.
In the week
March 16, production for
starting
the third
consecutive period created a
2?™inn
WW
i?rCC?^
the
nation
decrease
a
of
cars,
on
or
a
year ago, and a decrease
6% below the corresponding week in 1951.
V"
is
thaq the 90,258
turned out in the year
ago week.
cars
—
Total
output for the past week was made up
of,427,748 cars
29,960 trucks built in the United States, against
126,616 cars
and 28,992 trucks the
previous week and 90,258 cgrs and 26,154
trucks in the comparable 1952 week.
n
2'288,000 net tons
For the like week
a
and the rate was
month ago the rate
was
placed
99.4% and
the
and
industrial failures
decreased
slightly to 160
preceding week, Dun
first time in a month, casualties
ago when 181 occurred; they were also
were
off
not
as
heavy
as a year
slightly from the 1951
prewar
total of
170.
Continuingrfar below the
level, failures weret less than one-half
as
Casualties
numerous
as
were
of
almost
even
with
the
31
of
this
size
in
more
the
similar
week
1952.
Wholesale Food Price Index Moves
ing
the current number to
bring¬
the
highest in five
months,
since
or
Oct. 7, 1952, when it stood at
$6.44.
A sharp advance in coffee
following decontrol accounted for almost half of the week's
gain.
The latest index
compares' with $6.54 at this time a
year ago, or a
drop of 1.8%.
The
of
31
index
foods
in
mates
the
use
total
sum
and
its
of
the
price
chief function
is
pound
per
to
show
the
general trend of food prices at the wholesale level. n
Wholesale
The general level of prices
displayed a gradual uptrend during
The daily wholesale
commodity price index, com¬
piled by Dun & Bradstreet, Inc., rose to 283.37 on March
17, from
281.23 a week
earlier, and compared with 303.05 on the corre¬
sponding date last year.
Leading grain markets scored minor gains
during the week
although movements continued irregular. Wheat
strengthened de¬
spite the improved outlook for the
crop due to general rains in
growing areas. Support was largely prompted
by the huge amount
of wheat said to be
impounded under the government support
pro¬
gram.
Export demand for wheat remained slow. Firmness in
reflected
corn
light country offerings
and a tapering off of sales of
in spot markets.
The yellow cereal was
reported going into the loan at a rapid rate.
Trading on the Chi¬
cago Board of Trade was less active last week.
Sales of all
corn
grain
and soybean futures
dropped to a daily average of 41,000,000 bush¬
els, from 48,500,000 the week before, and
42,800,000 bushels in the
corresponding week a year ago.
Domestic
flour
business
to nearby needs. Moderate
the
past
bookings
week
were
was
confined
mostly
reported in Spring wheat
bakery flours around mid-week, but interest in hard
Winter wheat
varieties was restricted to small lot
replacement buying.
Following the lifting of OPS ceiling restrictions on
coffee last
week, prices went sharply higher. The
Santos 4 grade in the New
York market was quoted at
62^ cents a pound, representing a rise
of 7 cents above the
recent ceiling.
Roasters have advanced their coffee
prices from 2 to 6 cents a
pound over the past two weeks.
Dealer buying and short
covering
imparted a firmer tone to the cocoa market
toward the close of the
week.
Warehouse stocks of cocoa declined
during the week, and
totaled 72,192 bags, as
against 78,053 a week earlier, and
100,079 on
the corresponding date last
year.
Further advances were scored
in lard prices last
week, reflecting continued strength in
vege¬
table oils and the
higher trend in live hog values.
Cotton prices continued to work
moderately higher last week
to reach the highest level
in about three months.
Strengthening influences included mill
price-fixing, short cov¬
ering, and buying prompted by concern over
disturbing "incidents"
in Germany.
Tending to hold advances in
indicating plantings this
slowness
in
textile
check
year may exceed last
year,
markets
and
declining rate of loan entries also
loan
entries
reported
in
in
cotton
was
the week
a
export
were
fnd
reports
continued-
business.
The
depressing influence.
ended
March 6-felPto
CCC
36 600
a
be¬
year
the
week
esti¬
was
varied
from
a
the
corre¬
year ago
by the
following percentages:
New
to
England
+6;
west
to
East
+5
-f7;
and
+1
to
+2
+5;
South¬
Northwest +3
-f-9;
South
Midwest
to
and
Pacific
Coast
48.
Apparel stores reported that the
s h o p p i n g, season
was
nearly in full swing. Mild weather
Spring
in
sections
many
ited
evoked
to
response
spir¬
promotions
of
Spring finery.
Most merchants
selling
vious
There
confident
were
than
more
Easter
in
shopping
any
substantial
were
pre¬
season.
rises
in
the
buying of women's suits and
coats, particularly in the medium
to better grades.
new
attention
the
week
However,
a
of
most
buyers
this
there
continued
re-order
;for
held
season
ended
strong
-
preparations
shopping,
the
in
Wednesday.
to
be
demand
many items, particularly
As during recent months
for
apparel.
the total
dollar volume of wholesale
orders
remained larger than that of a
before.
;
,
.
Department store sales on a
country-wide basis, as taken from
the
Commodity Price Index Edges Upward
government-owned
in
spond levels of
year
represents
general
of
generally chalked
sales receipts re¬
Last-minute
A sharp upswing last week in the Dun
& Bradstreet wholesale
food price index lifted the March 17
figure to $6.42, from $6.28 a
week earlier.
This represented a rise of 2.2% in the
week,
in
encoun¬
difficulty in surpassing
trade
the
Sharply Higher
re¬
Since
than
by Dun & Bradstreet, Inc.,
to be from 3 to 7%
higher than
that of a year
ago. Regional esti¬
in
dipped to
130 from 145 in the previous week and 150
last yeaig; An
increase,
on
the other hand, appeared
among small failures, those having
liabilities under $5,000, which rose to 30 from 20 aweek ago and
or
apparel.
'
mated
of
involving liabilities of $5,000
the
as
stirred
earlier
figures
largest
4 4 to
in the week ended March 19 from 165
in the
& Bradstreet, Inc., states.
For the
ended
week
corded at this time of the
year.
The total dollar volume of re¬
Canadian
Business Failures Continue to Decline
period
merchants
Retailers
and
factories turned out 7,875 cars and
2,705 trucks last
week, against 7,536 cars and 2,618 trucks in the
preceding week
and 5,805 cars and 3,030 trucks in the
comparable 1952 week.
in
week
many
sales
tail
(re¬
cars
the
Easter
a
r
parts of the
their* spending
Easter
interest
fore.
ro.
aggregated 127,748 cars compared with 126,616
vised) in the previous week. This was 41% more
in
of
as
most
newed
the
and
year ago.
Wednesday of last
up
It
month,
a
Perks Up
Approaches
increased
1952,
Passenger car production in the United States Hast week rose
highest point in two years, according to "Ward's Automotive
Reports."
New
totaled
Volume
approach
?8,867
the
daily rate of 36,500
a
perceptibly
2.2% above the
or
February
by
previous
Shoppers in
the past week.
Weekly High
on Monday of this week.
While most other steel
consumers, too, are pressing hard for
material, the auto industry's attitude is
particularly significant
because it is the
largest consumer of steel and
any change in its
procurement efforts stands out
unmistakably,
this trade paper adds.
While business analysts are
wondering whether the auto in¬
dustry will be able to sell all the cars it
hopes to make in the first
half, the auto company steel
buyers are beginning to
say their
wants in the third
quarter will be greater than
those of the second.
Although retail deliveries of autos have
been at a fast
pace,
dealers stocks of new cars on
Feb. 20 (latest date of
a nationwide
count) totaled 374,201, highest level
since Nov. 30,
1951, when the
total was
375,104. Since Dec. 20, there has
been a steady climb in
stocks by 10-day
periods, this trade weekly asserts.
L
Not on every front, however, is the demand
strong for steel.
Railroads indicate
they will need very little volume of
and spikes this
plates, bolts
year.
Supplies of them ordered last
year are still
on hand because
deliveries of rails were
delayed
in
1952 by the
steelworkers strike. In
101.5%.
represented
corresponding week
or
cars,
cotfon
Exchange,
39,100 in February
to its
respectively.
at
with
bales
tered little
a
The
pared
Trade
United States Auto Output Advances to
Highest
Rate in Two Years
over
ago, Dun & Brad-
estimated
as
Cotton
weeks
of
four-week
bales, or a daily average
of 37,400 bales.
The latter com¬
^
February building permit values increased
the preceding month and the like month
a year
Steel
15,092
preceding
two
735,000
«r
total
the
45,020 cars,
increase of
an
the
59,100
the
York
freight for the week ended March 14,1953,
according to the Association of American Rail¬
1939 when 350 concerns succumbed.
wholesaling and retailing reached the highest level
60,000
Consumption
during
period,
revenue
week's
Commercial
involved
to
and
Loadings Make Further Gains^
roads, representing
preceding week.
1950.
liabilities
Car
totaled 700,108 cars,
failures
occurred in
from
week,
Easter
survey
high,
Moves Lo\yer
&■■■
\
Commission and the
present programs materialize," the two agencies noted.
It would
be $1,500,000,000 greater than such
expenditures in 1951.
bales,
ported for the corresponding period two years
ago.^;
now
released by the Securities and Exchange
United States Department of Commerce re¬
veals that firms in this country
plan to spend a record $27,000,000,000 on new plant and equipment this
year.
That would be $500,000,000 more than dollar outlays in 1952, the previous
a
at
Thursday, March 26, 1953
...
earlier.
industry for the week ended March 21,-4958, was esti¬
8,077,706,000 kwh., according to the Edison Electric In¬
cars
"wrapping up" their scheduled output
of 1,500,000 cars for the initial
quarter this year and plan to com¬
plete 1,800,000 cars in the second quarter, "Ward's" reported.
Earlier, it had predicted 1,700,000 cars would be assembled in
April-June quarter.
was
%^;i
The current total was 60,326,000 kwh. below that of the
pre¬
ceding week when output totaled 8,138,032,000 kwh.
It was 723,729,000 kwh., or 9.8% above the total output for the week ended
March 22, 1952, and 1,229,920,000 kwh. in excess
ofith.fr output re¬
t
This week
the capacity
stitute.
Car and truck production in the United States rose to its high¬
point in two years the past week, according to "Ward's Auto¬
motive Reports."
are
when
ago
The amount of electric
energy distributed by the^electric light
est
Manufacturers
year
and power
biggest consumers. Big consumers are also still
^actively
seeking steel from warehouses, concludes "The Iron Age."
now
A
Electric Output Again
the
Producers
tons.
smaller actual output was 2,141,000
tons, or 103.1
The State of Trade and
of
2,240,000
atfdjFinancial Chronicle
Federal
Reserve
Board's
in¬
dex, for the week ended March 14,
1953,
increased
11%
from
the
level
the
of
the
preceding
previous week
9%
(revised)
week.
reported
was
In
increase of
an
from
that of the
similar week of 1952.
four weeks ended March
For the
14, 1953, an increase of 8% was
reported. For the period Jan. 1 to
March 14, 1953, department store
sales
4%
registered
above
Retail
trade
past week
increase
an
of'
1952.
was
in
New
York
the
stimulated by good
weather and the near
approach of
Easter.
The
rise
approximated
about
6%
to
7% above
the
1952
week.
According
store
to
Board's
serve
the
Federal
index
Re¬
department
sales in New York
City for
weekly period ended March
1953, increased 7% from the
like period of last
year.
In the
preceding week an increase of 2%
was
reported from that of the
the
14,
similar
the
week
four
1953,
1952,
ended
increase of
an
corded.
of
weeks
For
while
for
March
3%
was
14,
re¬
the
period Jan. 1 to
March 14, 1953, volume declined
2% under that of 1952.
With Protected In v.
(Special
SAN
Wilber
tected
to
The
Financial
Chronicle)
FRANCISCO,
Calif.—
J.
Gehrke is with Pro¬
Investors of America, Russ
Building."
With Merrill Lynch Co.
(Special to The Financial Chronicle)
AUGUSTA, Ga._
Stevenson
staff
of
Fenner &
has
been
—
Walter
added
to
C.
the
Merrill
Lynch, Pierce,
Beane, 125 Eighth Street.
.
olume 177
Number 5206... The Commercial and Financial
Chronicle
(1355)
The following statistical tabulations
Indications of Current
Business
latest week
Activity
week
Latest
Previous
AMERICAN IRON AND STEEL INSTITUTE:
muiv-ttiiu
suei
Equivalent
Steei
Crude
PETROLEUM
runs
Gasoline
,
Mar. 29
(net tons)
to
output
S'f
output
Distillate
fuel
lbbls.)
oil
(bbls.)
.Mar. 14
6.449,950
6,439,800
6,544,500
Mar. 14
South
117,060,000
6,963,000
7.017,000
Mar. 14
6,404,400
6,693,000
23,147,000
23,131,000
23,552,000
21,756,000
South
Mar. 14
2,425,000
2,966,000
2,708,000
2,472,000
10,544,000
10,297,000
10,582,000
10,219,000
ASSOCIATION
-
.
OF
(bbls.)
at
AMERICAN
Revenue
freight loaded
freight received from connections
ENGINEERING
9,318,000
14
9,035,000
160,869,000
14
8,773,000
159,434,000
18,640,000
U.
S.
Private
,,
(number
of
f
coke
BUREAU
36,417,000
Mar. 14
700,108
685,016
681,750
708,97E
Mar. 14
668,949
672,031
666,145
671,243
of cars)
(no.
BUSINESS
PRICES
tE.
AVERAGE
M.
&
=
AND
Electrolytic copper—
Domestic
J.
100
——
——
—
INDUSTRIAL)
—
DUN
'*•
Lead
(St. Louis)
Zinc
York)
(East St.
$316,089,000
$266,241,000
Mar. 19
231,750,000
103,156,000
$250,763.00C
81,403,000
157,204,000
84,339,000
163.085,000
62,649.000
93,559,000
74,586,000
137,273,000
34,393,000
71,801,000
Mar. 19
9,753,000
25,812,000
28,256,000
21,758,000
.
Total
8,100,000
8,350,000
9,738,000
583,000
527,000
716,000
Construction
127,800
122,100
119,100
139,500
Commercial
Mar. 14
100
"96
92
9C
Mar. 21
8,077,706
8,138,032
8,196,186
7,353,977
Mar. 19
160
1.65
176
181
Retail
4.376c
4.376c
4.131c
Mar. 17
$55.26
$55.26
$55.26
$52.71
Mar. 17
$44.08
$44.08
$43.67
$42.01
Total
at
.
DUN
29.575c
24.200c
MOODY'S
34.600c
35.125c
27.425;
121.500c
121.500c
121.500c
13.500c
13.500c
19.000c
Mar. Is
13.300c
13.300c
13.300c
18.800c
-Mar. 18
11.000c
11.000c
11.500c
19.500
Mar. 24
94.08
94.86
Mar. 24
107.27
107.62
108.16
,—^..^Mar. 24
110.70
111.07
111.62
113.89
Mar. 24
109.42
109.97
110.34
112.56
Mar. 24
U.
S.
—
DAILY
102.80
102.96
103.47
104.14
105.17
106.04
106.56
107.27
107.62
109.41
Mar. 24
109.97
11015
110.88
113.50
of
Mar. 24
2.92
Mar. 24
3.32
3.30
3.27
3.1)
3.13
3.11
3.08
2.96
Mar. 24
3.20
3.17
3.15
3.03
3.37
3.36
3.32
3.58
3.57
3.54
•
MOODY'S
Mar. 24
—,
Orders
Unfilled
OIL,
of
orders
PAINT
1»49
^
DRUG
EXCHANGE
Odd-lot sales
of
of
orders-....
shares
Dollar
short
sales—
sales
of
PRICE
Stocks Feb. 28
Cotton
other
2.98
.—
of
24
418.6
423.0
410.0
437.9
226,218
369,535
217,420
183,464
Mar. 14
242,903
251,232
245,665
205,40
:
Mar. 20
sales
Other
sales
1,649,000
$27,273,000
$23,309,000
$19,474,000
128.3
"129.1
121.5
80.876
period
DEPT.
OF
94
96
95
85
517,597
544,346
514,273
409,339
107.49
107.45
107.89
109.67
All
February
28—
sales..
Total
Roupd-lot
Short
sales
Other
sales
Total
,
STORE
OF
War
7„
7/
-lar
7
29,803
29.167
35,698
30,995
850,000
869,737
1,036,903
863,650
$37,963,466
$38,182,423
$44,249,552
$41,129,188
28,961
25,968
3.1,059
Durable
DISTRICT,
BANK
N.
OF
monthly 1,
Y.
of
:
199
166
185
25,769
30,893
24,432
803.112
738,713
879,779
690,205
7,131
7,325
5,930
6,279
Mar
795,981
731,338
873,849
Mar,
$32,203,188
$29,216,202
$35,217,630
683,926
$29,198,097
-Mar
258,950
203,110
266,590
179,850
.
Mar
—
"■
(SHARES):
•/.,
1,034,365
629,430
20,314,000
19,975,000
14,949,107
FEDERAL
1947-1949
—
71
unadjusted
258,950
7,
7V; V
208410
-
318,550
,
sales
sales
422,140
Feb. 23
.Feb. 28
TRANSACTIONS FOR, ACCOUNT OF MEMBEES, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Other
78
82
seasonally adjusted-
97
100
107
101
♦103
110
114
*106
13,527,000
7,816,000
"13,452,000
12,911,000
"7,713,00 0
7,322,000
5,711,000
"5,739,000
5,589,000
—
—,
S.
DEPT.
SERIES—Month
of
(production workers)
number
of
employees in
109.4
"108.8
104.4
149.6
"145.4
132.9
16,713,000
manufac¬
manufacturing
goods
Nondurable
—
goods
—
ERNORS
"16,625,000
15,913.000
9,622,000
9,507,000
9,000,000
7,091,000
"7,118,000
0,913,000
237
235
221
233
233
217
RESERVE
FEDERAL
THE
OF
SYSTEM—1935-39=100—Month of Jan.:
Seasonally adjusted
——————
Unadjusted
—
PLANTING
PROSPECTIVE
REPORTING
CROP
all
Corn,
4949
FOR
BOARD
THOUSANDS—As
of
—
S.
U.
ACREAGES
—
March
—
All spring
179~85C
265590
343,190
380,960
1:
—
—,
wheat—
Other
spring
—
.
257,720
26.1,770
271,710
3,934,260
6,655,33d
8,435,740
6,233,920
9,406,400
6,916,050
8,697,510
6,505,630
Other
Total
on
the
purchases L—-
Short
sales
Other
sales
floor—
/
.
28
213,700
129,900
150.920
28v-
800,720
510,560
685,170
1,014,4 20
640,460
836.090
Total sales
Other
transactions
Total
658,070
651,690
867,250
Short
sales
sales
—
-
____
520,140
267.3S0
.
152,460
191,790
34,600
21,000
10,500
14,400
28
245,480
136,640
201,010
131,360
—-,,-Fcb
28
280,030
157,640
211,510
145,760
Feb
28
295,586
225,881
302,7.10
301,945
-Feb. 28
65,740
34,020
53.550
Feb. 28
461,564
327,750
300.152
327,611
—.Feb. 28
527,304
361,770
353,702
363,361
1,492,306
1,036.411
1,361,750
1,079,035
—
purchases
Short
sales
Other
sales
——
—
—,
LABOR
—
35,750
(1947-49
NEW
==
SERIES
All
U.
foods
...
as
DEPT.
214.970
187,710
974.950
1,186,332
929,111
...
farm
——
and
1,821,304
1,159,870
1,401,302
1,166,821
110.2
109.9
109.6
111.8
Mar
100.2
"98.4
98.5
108.1
——"—Mar
104.9
"105.4
105.3
109.3
foods.,—Mar
Tlncludqs $38,000 barrels of foreign crude runs,
against the Jan, L 1952 basis of 103,587,670 tons,
2.013
12.455
1,509
Mil
v
4
1,659
1,776
1,332
1,319
234
228
15,862
15,643
1,958
1,969
74,853'
74,664
801
720
—
S.
AND
A.—Month
S.
U.
February-
of
sales
Net
U.
TRANSACTIONS IN DI¬
GUARANTEED
SECURITIES
MARKET
purchases
GOVT.
As
Total
of Feb.
28
DEBT LIMITATION
$24,581,000
$6,086,500
$275,000,000
$275,000,000
$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
$267,023,096- $166,837,459
$259,7,40.2/4
8,162.540
15,254,705
$8,797,700
'
'
'
'
1
(OOO's omitted »:
amount
face
any
-
STATUTORY
that
may
be
outstanding
time
Outstanding—
Total gross
Guaranteed
public debt
obligations
•—
not
owned
by
the
Treasury v——
OF
—...Mar,
—
—
v
commodities other than
1953
S.
3,4 V)
14,666
367
-r———
beets
Total gross
"Revised figure.
of Jan. 1.
—
products
Processed
184.920
1,507,764
100):
Commodity GroupAll commodities..—
Farm
314,040
28
Feb.
—
28
Feb. 28
Feb. 28
PRICES,
*9,3.15
2,119
—■
—
RECT
OF
Net
at
——-Feb
—
Total sales
WHOLESALE
Sugar
125,400
28
Total round-lot transactions for account of members—
Total
9,357
field
TREASURY
—Feb
—
42,975
657,700
———Feb
:
2,306
19,212
43,777
—
t
.
—
Peanuts
initiated off the floor—
sales
.
137,560
...
>
purchases
Other
Total
28
——-Feb. 28
:
—
—
Soybeans
929.330
Feb.
.
;
-
;
2:1,513
19,455
dry edible
dry
Peas,
,
Feb
initiated
—
Sweetpotatoes
Beans,
—Feb. 28
—.
transactions
Potatoes
-
-*-Feb
Total sales
82,658
■4,142
- ——
—
Sorghums lor all purposes
registered
_
,
„
81,764
21,600
2,145
401.23C
'
;
77
79
96
manufacturing
Durable
r
Feb. 28
sales i_—_
Short
79
unadjusted
goods
Flaxseed
-
1
-
which
15,071,552
FED¬
....
<v--
stocks in
120,498
1,091,947
20,277,000
,
r—___Mar
sales—
purchases
769,641
1,682,891
4,444,558
February:
PAYROLLS—U.
AND
893,808
1,733,358
1,477,283
111,009
109,962
goods __:
Employment Indexes (1947-49 Avge.—100)—
All manufacturing
Payroll
Indexes
(1947-49
Average=100)—
24,617
201
28.760
ROUND-LOT
Total
59,747
COMMERCE)
SALES—SECOND
LABOR—REVISED
IN
Transactions of specialists hi
59,836
turing industries-
r.
—
MEMBERS
OF
60,944
1,861,629
—
of Feb. 28
as
Nondurable
ROUND-LOT STOCK SALES ON THE NEW YORK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT
104,795
6,940,360
TOTAL
FOR
125,133
765,778
of Feb.
as
of
(DEPT.
manufacturing
All
Mar
purchases by dealers—
Number of. shares._.__„
-
95,979
117,204
COM¬
month
RESERVE
Estimated
Mar
Round-lot
>
"81,625
108,010
(tons
——
OF
83,050
101,538
December—
Mar
,
—J.
of
-
GINNING
RESERVE
All
Mar
shares—Total sales
Short
1,935,000
.
1
AVERAGE=1<)(>—Month
dealers—
by
6,548,000
868.000
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
i
sales
Number
8,009,000
2,735,000
1,180,000
Running bales report issued March 20
EMPLOYMENT
Mar. 14
'
Round-lot
3,728,000
February:
28
Stocks, unadjusted
Stocks, seasonally adjusted
3.20
sales
Dollar value
of
as of Feb.
spindles active
COTTON
INDEX—
short sales..
Customers'
-
public storage
3.50
3.36
—
shares—Total
Customers'
619
$5,614,000
2,590,000
BALES:
(average
3.39
Mar
other
—
(average daily),
3.30
i
Customers'
LINTERS
(average daily),
3.12
—Mar. 14,
__
Customers'
AND
Sales
3.44
value-
Number
647.
$9,107,000
pounds)—
end
at
Sales
3.16
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
'
691
—
Linters—Consumed
m SECURITIES
EXCHANGE COMMISSION:
by dealers (customers' purchases) —
of
stock
pounds)
3.23
3.32
Mar. 14
period
REPORTER
Number
52
A.—
of 2,000
Sales
3.44
...
_____
Number
39
5,124,000
pounds)
consuming establishments
In
2.71
3.35
1
end
month
2,000
MERCE—RUNNING
In
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS
AND
SPECIALISTS ON N. Y. STOCK
'
70
49
INC.
2,000 pounds,)
of
(tons
copper
COTTON
ASSOCIATION:
activity—
(tons) at
AND
2.86
3.17
(tons).
AVERAGE =100
•
Mar. 24
Mar
(tons)
-Percentage
2.87
—Mar. 24
INDEX
PAPERBOARD
received
Production
'
Mar. 24
Group
Group
COMMODITY
NATIONAL
.
.
Utilities
Industrials
■
,
Railroad Group
Public
78
fabricators—
A.
2,000
ERAL
-Mar. 24
,
,
108.88
106.74
„
...—
107.27
105.17
Government Bonds
-i
106.56
Mar. 24
Aa
Baa
to
DEPARTMENT
Aaa
/•;
(tons
U. S.
Refined
109.79
AVERAGES:
Average corporate
!
INSTITUTE—For
Refined
96.81
Mar. 24
Group
YIELD
106.39
94.89
_Mar. 24.
Group
BOND
BRADSTREET,
Crude (tons of
24.200c
13.500c
Group
Industrials
>
.
&
Copper production in U. S.
In
29.150c
34.275c
__—
—
86
9,139,000
liabilities.
liabilities
Deliveries
121.500c
'
Utilities
60
304
3,378,000
liabilities
service
133
66
334
$8,452,000
Lint—Consumed month of February
—_.
,
.
130
76
348
CONSUMER PURCHASES OF COMMODITIES-
'
Mar. 18
;
...
Public
liabilities
liabilities
COPPER
4.376c
...
.
Mar. 18
A
Baa
.___
<1.947-1949=1100)—Month of February—
__Mar. 18
1
corporate
Railroad
I__
liabilities
662,000
,
Aa
132
number
Manufacturing
8,430,000
'l
at
at
Aaa
BRA.DSTREET,
Commercial service number
Mar. 14
QUOTATIONS):
Government Bonds
Average
&
Construction number
MOODY'S BOND PRICES DAILY AVERAGES:
U. S.
33,765,418
281,555,485
February:
number
Mar. 14
,
of
number
Mar. 14
Mar. 17
at
Louis)
$144,052,000
Mar. 19
Mar. 18
Export refinery at
tin (New York)
(New
Mar. 19
&
refinery at
Lead
Retail
1
Straits
28,765,075277,703,233
INDEX—FEDERAL RESERVE
Pig iron (per gross ton)_
Scrap steel (per gross ton)__.
METAL
FAILURES—DUN
Wholesale
COMPOSITE PRICES:
steel (per lb.)
Finished
27,394,212
INC.—Month
OF
BRADSTREET, INC
IRON AGE
City
Manufacturing number
ENGINEERING
—
(tons).
(COMMERCIAL
$315,320,903
45,954,000
EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)
FAILURES
$306,468,308
308,996,790
New
Outside New York City.
(tons)
SYSTEM—1947-40
$336,391,002
16,442,000
51,665,000
MINES):,
(tons).
DEPARTMENT STORE SALES
55,437,055
States..
21,815,000
Mar. 19
lignite
67,534,064
74,978,000
'.
Pennsylvania anthracite
Beehive
-
10,372,331
72,559,515
65,476,000
Federal
S.
9,579,475
_
———
Wholesale
and
22,555,473
13,685,808
19,843,000
cars)
CONSTRUCTION
municipal
(U.
58,966,245
13,826,189
43,628,000
Public construction
Bituminous coal
57,628,884
6J,4^0,585
17,339,312
~
42,284,000
construction
COAL OUTPUT
46,688,776
62,545,000
construction
State and
62,305,102
33,068,865
77,599,329
53,630,948
14
NEWS-RECORD:
Total
»
$14,986,948
49,495,805
Central
York
$14,599,976
35,213,438
.
United
Ago
51,510,508
Central
Total
Month
38,474,136
Mountain
154,740,000
Year
Month
$11,591,366
I_
__
;_Mar. 14
,
;
—
Atlantic
Pacific
of that dates
Previous
CITIES—Month
Atlantic
West
are as
Latest
&
East Central
8,981,000
154,469,000
INC.—215
DUN
—
either for the
are
RAILROADS:
Revenue
CIVIL
14
VALUATION
England
Middle
_Mar. 14
PERMIT
BRADSTREET,
of February:
2,141,000
=
output
oil
BUILDING
2,240,000
—
fuel
103.1
"2,288,000
(bbls.)
average
of quotations,
cases
Ago
99.4
§2,259,000
(bbls.)
Kerosene
Residual
Ago
"101.5
Mar. 29
Residual fuel oil output (bbls.)
Mar.
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
;
Mar.
Kerosene (bbls.) at
Mar.
Distillate fuel oil (bbls.) at
Mar.
.
§100.2
«,
h. >
.
stills—daily
in
or,
Year
New
puuailv
production and other figures for the
cover
Dates shown in first column
that date,
on
INSTITUTE:
Cfuae oil anq cuuueiisatc
42 gallons each)
4t,
month ended
Month
Week
(percent of capacity)
and castings
month available.
'
to—
nigois
AMERICAN
operations
or
or
94.5
95.9
97.6
112.6
113.4
"113.3
112.8
113.2
§Based
on
new
annual
capacity of 117,547,470 tojts
public debt and guaranteed
obligations
outstanding
Deduct—other
—
public
debt
obli¬
gations not subject to debt limitation—
total
outstanding—
Balance face amount of obligations, issuable
under above authority-!.—.———a*Grand
as
"Revised.
7,978,903
48
The Commercial and Financial Chronicle...
(1356)
Thursday, March 26, 1953
* INDICATES
Now in
Securities
^Agricultural Insurance Co., Watertown, N. Y.
100,000 shares of capital stock (par $10)
ito be offered for subscription by present stockholders
rate of one new share for each three shares held.
3Warch 25 filed
IPriee—To be supplied by amendment.
Proceeds—For
jgeneral corporate purposes.
Underwriter—Blyth & Co.,
JLnc., New York.
Jttaoka Telephone Corp., Juneau, Alaska
JFeb. 27 (letter of notification) $200,000 of 6% 20-year
convertible debentures.
Price — $70 for each $100 of
■^principal amount. Proceeds—To expand service. Under¬
writer—'Tellier & Co., New York.
Aiifdd Chemical & Dye Corp.
jMarfcft
11
(4/1)
$200,000 of 25-year debentures dueApril 1, 1978. Price —To be supplied by amendment.
^Proceeds—For expansion program.
Underwriter—Morjgaif Stanley & Co., New York.
Inc., Washington, D. C.
16 (letter of notification) 700 shares of common
.23totic (no par). Price—$400 per share. Proceeds—To con¬
duct technical assistance and industrial development
^rdgr&rh in foreign countries. Office—1625 I St., N. W.,
Washington, D. C. Underwriter—None.
.March
Ahitican Pipeline Producers, Inc.
•fait 5 (letter of notification) 599,000 shares of common
attack (par one cent). Price—50 cents per share. Proceeds
Office—Room 308, Texas Eastern Bldg.,
report, La. Underwriter—W. C. Doehler Co., Jersey
City, N; J. Offering—Date indefinite.
American Reenforced Paper Co., Attleboro, Mass.
March 18 (letter of notification) 1,960 shares of common
.stock (par $5). Price—$15.25 per share. Proceeds—To P.
"T.
Jackson, the selling stockholder/Underwriter—Paine,
Webber, Jackson & Curtis, Boston, Mass.
&
Refining Co.
3Fe& 27 filed 100,000 shares of cumulative second predferrfcd stock, $1.50 series of 1952 (no par) (convertible
jpsribvlo
due March 1, 1983. Proceeds—To repay bank
improvements. Underwriters—To be de¬
for
and
termined by competitive bidding.
Probable bidders: Hal-
Stuart & Co. Inc.; The First Boston Corp.; Harriman
sey,
Ripley & Co. Inc.; White, Weld & Co., Kidder, Peabody
& Co. and Lee Higginson Corp. (jointly); Estabrook &
Co. and Stone & Webster Securities Corp.
(jointly); Leh¬
Brothers; Union Securities Corp. Bids—To be re¬
up to 11 a.m. (EST) at 49 Federal St., Boston,
man
Mass.
Holdings Corp., San Francisco, Calif.
March 13 (letter of notification) 11,846 shares of
stock
mon
To
Elbert
(par $1).
J.
Price—$8
Evans,
per
the* selling
share.
stockholder.
Undel^
if Century Shares Trust, Boston, Mass.
March 23 filed 250,000 shares of capital stock. Price—At
if Clevite Corp., Cleveland, Ohio
Brockton Edison Co.
March
(4/6)
'
filed
6
$4,100,000 first mortgage and collateral
trust bonds due Feb. 1, 1983. Proceeds—To repay bank
loans. Underwriters—To be determined by competitive'
bidding. Probable bidders: Halsey, Stuart & Co.; Harri- *
man 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
11 a.m. (EST) on April 6 at 49 Federal St., Boston, Mass.
A Bureau of National Affairs, Inc.,
Washington, D. C.
March 18 (letter of notification) 1,000 shares of common
stock (no par) to be offered for subscription by em¬
ployees.
Price—$30 per share.
Proceeds—For operat¬
ing expenses.
Office—1231 24th St., N. W., Washington,
Underwriter—None.
★
Colorado Central Power Co., Englewood, Colo.
each 14 shares
$17.50
per
held; rights will expire April 6.
share. Proceeds—Tot
—3470 South Broadway,
—None.
■
Community Credit Co., Onufea, Neb. rv
26 (letter of notification)-.1,500 shares
Jan.
"'4
Office—
Underwriter—None.
Proceeds—Te
tion.
(letter of notification)
25,000 shares of comjwnon stock.
Price—At market (from $2.50 to $3.50 pef
^share). Proceeds—To Halvor Rolfsrud, the selling stock¬
holder. Underwriter—Jamieson & Co., Minneapolis, Minn.
*&T Baukoi-Noonan, Inc., Noonan, N. D.
March 16 (letter of notification) 15,000 shares of common
(par $1). Price—At market (from $2.50 to $3.50
share). Proceeds—To C. E. Kempel, the selling stock-
Iholder.
Underwriter
—
Jamieson
&
March 9 filed
Co., Minneapolis,
Minn.
Hearings Co.
March
9
filed
of America, Lancaster, Pa.
$600,000 of first mortgage 5V2%
^
-Jferred
stock
bonds and $74,250 of
and
class
5%
B
class A prepreferred/stock and for
-wdriring capital. Underwriter—Dempsey-Tegeler & Co.,
5
1" '■
■.
!'*i '{»•
Benson & Hedges, New York
t;: ^
March 23 (letter of notification) 306 shares of
-stock (par $4) to be offered for
t, v
JPlan.
the
company's
Price—$40 per share.
,
!
\
common
subscription by
I>ldyees under
'
em-
Restricted Stock Option
Proceeds—For operating
«apital.
Office—600 Fifth Avenue, New York.
writer—None.
Under¬
lAr Big Pay Day Mining Co., Sandpoint, Idaho
(letter of notification) 250,000 shares of
/March 10
Cooperative Grange Leagise Federation
Exchange, Inc.
Feb. 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—
102, Sand-
Underwriter—None.
.
f
San Fkancisco
Private Wires
lis
all
offices
Cleveland
to
be
offered
common
for
subscription by present stock¬
holders. Price—At par. ($10 per share). Proceeds—For
new equipment.
Office—2001-23 No. Parkside Avenue,.
Chicago 39, 111. Underwriter—None.
-A- Detroit Stamping Co., Highland Park, Mich. (4/9)|
March 20 filed 120,000 shares of common stock
(par $1).,
Price?—To be supplied by amendment. Proceeds—To cer¬
tain
selling stockholders.
Co., Grand Rapids, Mich.
Underwriter—White, Nobel 8c,
(N. J.)
March 18 (letter of notification) 40,000 shares of common
(par 50 cents).
Price—$5 per share.
Proceeds—
For working capital, etc. Office—18 Hamilton
Brook, N. J.
of
one
for
St., Bound.
Underwriter—None.
share for each $10 of
debentures), to be offered
subscription by
March 3
common stockholders at rate of $10
of debentures for each five shares of
common stock held,.
Price—To be supplied by amendment.
stock
property additions.
Carpenter (L. E.) & Co.
(letter of notification) 1,200 shares of common
(par $1). Price — At market (about $4.62^ to
$4.87V2 per share). Underwriter—Eisele & King, Libaire,
Stout & Co.. New York. Proceeds—To
George Lucas,
President.
Sold privately.
Celon Co., Madison, Wis.
March 6 (letter of notification)
$157,100 of convertible
subordinated
debentures due 1965.
Price—At par (Id
denominations of $100, $500 and $1,000 each). Proceeds—
working
Proceeds—For
Underwriters—White, Weld & Co.,.
York; F. S. Moseley & Co., Boston, Mass.; Equitable
Securities Corp., Nashville,
Tenn., and Elder & Co.,,
Chattanooga, Tenn.
New
Eastern Life Insurance Co. of New York
5 (letter of
notification) 1,500 shares of capital
March
capital. Office—2034 Pennsylvania
Underwriter—None.
Ave^
Madison 4, Wis.
stock
(par
stock. Price—At par (10 cents per share). Proceeds
mon
as
broker.
No
Manufacturing Corp.,
25
(letter of notification) 748,000 shares of com¬
stock (par five cents). Price—40
cents per share.
Proceeds—For
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.,
New York.
Central and South West
Corp. (4/1)
March 6 filed 606,084 shares of common stock
(par $5)
to be offered for subscription
by common stockholders
share for each 14 shares
April 20. Proceeds—To
pur¬
capital.
Underwriter—Hunter
Econo Products
Jan. 8
(jointly);
working
Securities Corp., New York.
if Central Power & Light Co.
March 23 filed $3,000,000 first mortgage
bonds, series E,
due May 1, 1983.
Proceeds—For construction program.
one
Proceeds—To
Underwriter—None,
York, will act
Eastern Tractor
Feb.
on
share.
per
general public offer is planned.
com¬
held; rights will expire
Price—$12
Kingston, N. Y.
(letter of notification) 1,800,000 shares of
of record April 1 in ratio of
$5.50).
Judea Industrial Corp., New York.
but Franklin & Co., New
Central City Milling & Mining Corp.
March 4
Fenner & Beane and Salomon Bros. & Hutzler
The First Boston Corp.
Philadelphia
.
Daystrom Manufacturing Co., Chicago, III.
Febi 17 (letter of notification) 14,000 shares of
★ East Tennessee Natural Gas Co. (4/9)
March 20 filed $2,144,520 of 5% convertible debentures
due May 1, 1968 (convertible into common stock at rate
Inc., Harriman Ripley & Co. Inc., and Stone & Webster
Securities Corp. (jointly); Union Securities
Corp.; Kuhn,
Loeb & Co.; Kidder, Peabody &
Co.; Lehman Brothers
and Glore, Forgan & Co.
(jointly); Merrill Lynch, Pierce,
Chicago
leases, for exploration expenses, to repay
working capital. Office—100 West 10th
Underwriter—Charles J. Maggio,
for
Bros. &
mining operations. Underwriter—R. L. Hughes &
Co., Denver, Colo.
Pittsburgh
and
if Direkt-Form Corp.
(4/6)
$8,000,000 of first mortgage bonds due 1983.
—For
Boston
acquire
loans
Proceeds—To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
mon
KewYork
To
stock
For
com-
amon stock (par 5
cents). Price—10 cents per share. Prot«eeds—For diamond drilling. Address—Box
73Pdint, Idaho.
(par $1).
construc¬
and
4^2%
Louis, Mo.
new
To be determined
Hutzler; Merrill Lynch, Pierce, Fenner & Beane
Dean Witter & Co. (jointly); Kidder, Peabody &
Co.; Blyth & Co., Inc.; Lehman Brothers. Bids — Bids
scheduled to be received up to 11.30 a.m.
(EST) on
April 6.
con¬
vertible bonds due from 1954 to 1968, inclusive. Priced—
*100% of principal amount. Proceeds—To retire $303,000
-*4%% convertible
—
California Electric Power Co.
tjstock
3per
bank loans and for
by competitive
bidding. Probable bidders: Blyth & Co., Inc.; Kidder,
Peabody 8c Co;j Merrill Lynch, Pierce, Fenner & Beane
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.
Raukol-Noonan, Inc., Noonan, N. D.
March 13
repay
Underwriters
5%%
Underwriter—Wachob-Bender Corp., Omaha, Neb.
stock
-8616 Park Ave., Ashtabula, Ohio.
of
capi¬
tal.
tlieild; rights expire
Price—At par ($25 per
Underwriter
v*
cumulative sinking fund preferred stock, series A. Price—At par ($100 per share)/ Proceeds^-For working
California Electric Power Co. (3/31)
March 2 filed 136,249 shares of common stock
April 2.
Englewood, Colo.
stock
a
For construction program.
Price—r
new construction. Office
.,,,./
St., Wilmington, Del.
Inc., New York.
on
'
March 9 (letter of notification) 14,834 shares of common:
stock (par $5) being offered for subscription by common
stockholders of record March 6 at rate of one share for
working capital.
Underwriters — Dallas Rupe & Son.
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser & McDowell, Chicago, 111. Offering'
—Postponed.
—
(4/14)
common
be
Ashtabula Telephone Co. (Ohio)
2Fefe. 20 (letter of notification) 10,000 shares of common
atobk being offered to common stockholders of record
JFefo 26 at rate of one new share for each three shares
Proceeds
shares of
stock (par $1).
supplied by amendment.
Proceeds—For
working capital.
Business—Manufacturers of bearings,
bushings,
electric - components
and
devices.
Under¬
writers—F. Eberstadt & Co., Inc., New York, and Prescott, Shepard &c Co., Inc., Cleveland, O.
Price—To
Ltd., Toronto, Canada
Sept. 25 filed 1,000,000 shares 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.
Underwriter—Vance,.
Sanders & Co., Boston, Mass.
Tfrmdir—None.
ajshdrel.
ISSUE
—
March 20 filed 200,000
writer—Harris, Upham & Co., New York.
Byrd Oil Corp., Dallas, Tex.
5%% convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at the rate
of $100 of bonds for each 28 shares of stock held (for
improvements. Under-
REVISED
chase addiitonal shares of common stock of its four prin¬
cipal subsidiaries, who in turn will use the funds to pay
for property additions and improvements.
Underwriters
—To be determined by competitive bidding.
Probable
bidders: The First Boston Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Lazard Freres & Co. (jointly); Blyth & Co., Inc., Smith,
Barney 8c Co. and Harriman Ripley & Co., Inc. (jointly).
Bids
To be received up to 11 a.m. (CST) at 20 No.
Wacker Drive, Chicago 6, 111.
14-day standby). Certain stockholders have waived
their rights. Price—At par. Proceeds—To
repay $1,014,500 of outstanding notes and for drilling expenses and
for property additions and
ITEMS
market. Proceeds—For investment.
com¬
Proceeds—
Oct 22 filed $1,750,000 of 10-year
granted. Proceeds—For working capital and used in
•
PREVIOUS
ceived
D. C.
June 15, 1962) to be offered for subscription by
«affie&S and employees of company and its American
iinil Canadian subsidiaries under a "Restricted Stock Op¬
tion Plan for Employees." Price—Alternate provisions
3ti* the purchase price at 85% and 100%, respectively,
•aal ihe iharket value of the stock at the time the options
-ard
trust bonds,
loans
Bristol Oils
^American International Development Services,
Asfrfand Oil
if Blackstone Valley Gas & Electric Co. (4/21)
19 filed $5,800,000 first mortgage and collateral
March
Blair
filed
—Tor drill wells.
Registration
ADDITIONS
SINCE
Co., Inc.
(letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—Forexpansion and working capital. Office
17 State
St.,
stock (par 10 cents).
—
Underwriter—James T. DeWitt
&
Co., Inc
Washington, D. C.
Ekco Oil
Co., Philadelphia, Pa.
Dec. 4
(letter of notification) 99,000 shares of common,
stock (par one cent).
Price—$3 per share. Proceeds—
To acquire leases and drill wells.
Underwriter—Hopper.
Soliday & Co., Philadelphia, Pa.
★ Ekco Products Co., Chicago, III. (4/15)
March
23
filed
$5,000,000 of subordinated debentures
1, 1973, and 50,000 shares of common stock
(par $2.50), the stock to be sold for the account of
sell¬
ing stockholders. Price-^-To be supplied
by amendment.
due
April
v
Volume 177
Number 5206... The Commercial and Financial Chronicle
Proceeds—From sale of debentures,
rate
for general
Securities
•
corpo¬
Underwriter — Union
purposes.
shares of common stock (par $3),
of which 883,882
shares are being offered for sub¬
scription by holders of common stock and $4.25 con¬
vertible
second
preferred stock of record March 24
mon
one
share of
new
for each four
common
shares held and one new share of
preferred
common
New York.
•
com¬
Calif.
held; rights to expire April 8.
The
remaining 80,000 shares are to be reserved for offering
to employees.
Price^-$32.50 per share.
Proceeds—To
Proceeds—
For general corporate purposes, including acquisition of
■certain assets of United States Electric Tool Co. Under¬
writer—None.
J
pany and to certain individuals and firms in payment
for services. Price — $5.75 per share. Proceeds — For
English Oil Co., Salt Lake City, Utah
Jan. 5 filed 3,435,583 shares of common stock, of which
750,000 shares are to be offered publicly, 250,000 shares
engineering and construction of prototype coaxial heli¬
copter. Office—St. James, L. I., N. Y. Underwriter—
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 acquisition of additional proper¬
ties and leases.
Underwriter—J. A. Hogle & Co., Salt
lake City, Utah. Offering—No date set.
None.
•
Hercules Steel Products Corp.,
Galion, Ohio
(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. M. Walsh. UnderwriterVan
Alstyne, Noel & Co., New York.
No general public
offer is planned.
stock
March 2 filed 25,000 shares of common stock to be first
offered to common stockholders of record March 10 at
be
to
offered
at
$1.99
per
share;
Hilo Electric Light Co., Hilo, Hawaii
100,000 shares
cumulative participating preferred stock
at $1 per
share; 100,000 shares of class B 6% cumulative
non-participating preferred stock at $1 per share; and
50,000 purchase warrants or options to buy one addi¬
tional share of either
at
one
cent
common
or
rate of
For
—
share for each three shares held; then to
any unsubscribed shares to be offered to
one new
employees;
public. Price—At par ($20 per share).
repay bank loans. Underwriter—None.
preferred class A stock
warrant. Proceeds
per
A
stock
to be offered for subscription,
(par $5),
stockholders at rate of one
by common and preferred
share of class
and/or
shares of preferred
A stock for each 3y4
Price
held.
stock
common
$6.50 per share...
—
balance of RFC loan ($192,3fl)»
outstanding preferred stock ($86,341); and
working capital. Underwriter—Barrett Herrick «fc
Proceeds—To
repay
redeem
to
for
Co., Inc., New York.
Inspiration Lead Co., Inc., Wallace, Ida.
(letter of notification) 2,000,000 shares of com¬
stock.
Price—15 cents per share.
Proceeds-JPcr
mining expenses. Office—507 Bank St., Wallace, Ida.
Underwriter—Mine Financing, Inc., Wallace, Ida*
Jan. 26
mon
March 5
Equitable Insurance Co., Puerto Rico (4/1)
Feb. 24 (letter of notification) 50,000 shares of common
of class A 6%
Feb. 26 filed
class
Gyrodyne Cb. of America^ Inc.
13 filed 350,000 shares of class A common Stock
(par $1), to be offered for subscription by stockholders
of record Dec. 22, 1952, on a pro rata
basis; rights to ex¬
pire on Feb. 28, 1953. The offering will include 50,000
shares to directors, officers and employees of the com¬
share for each 12 % shares
Independent Plow, Inc., Noedesha, Kan. (4/1-7)'
100,000 shares of participating convertible
•
New York.
(4/10)
March 18 filed 37,230 shares of common stock (par $4)
be offered for subscription by stockholders of record
Price—To be supplied by amendment.
^
^ Idaho Consolidated Mines, Inc., Seattle, Wasffc.
March 18 (letter of notification) 300,000 shares of com¬
mon stock (par
10 cents). Price — 50 cents per shares
Proceeds
To enlarge pilot mill. Office — 4100 Arcades
Bldg., Seattle 1, Wash. Underwriter—None.
—
to
lield.
Broadway, Glendale 4,
Underwriter—None.
Corp., Long Ihland City, N. Y.
(letter of notification) 36,325 shares of com¬
mon stock
(par 10 cents). Price—$2.75 per share. Pro¬
ceeds—For working capital. Underwriter—Batkin & Co.,
—White, Weld & Co., New York.
new
Office—110 West
will act aa
broker.
Guardian Chemical
repay bank loans and for new construction. Underwriter
one
Underwriter—None, but Thomas M. Sterl¬
stockholders.
Yearbook, Inc. (4/1)
March 3
-
April 10 at rate of
Great Western
erate business.
for each
^ Kycon Mfg. Co., Washirtgtcrt, D. C.
t
March 17 (letter of notification) 100,000 shares of ccra*mon
stock (par 10 cents). Price—$1 per share. Pro¬
ceeds—To Orrin W. Fox and Richard L. Fox, the selling
ing of Watt & Watt, Toronto, Ont., Canada,
March 10 (letter of notification) 10,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To op¬
share
^ Emerson Electric* Manufacturing Co.
(4/2)
acquisitions and working capital. Office — U. S. Bank
Bldg., Grand Junction, Colo. Underwriter—Israel & Co.,
El Paso Natural Gas Co.
March 6 filed 963,882
at rate of
Great Western Uranium Corp.
Feb. 12 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
Corp.,
New York.
♦
(1357}- m
Telephone Co., Bristol, Tenn»
4 Inter-Mountain
(4/9)
142,500 shares of common stock-voting
be offered for subscription by common,
stockholders of record March 30 at rate of one new
share for each three shares held. (Southern Bell Tele¬
March
(par
20
filed
$10)
to
phone & Telegraph Co. and Chesapeake & Potomac Telee*
phone Co. of Virginia, own, respectively, 32.8% andL
12.2% of the presently outstanding common stock cdc
Price—To be supplied by amendment-
Inter-Mountain.)
Proceeds—To
Continued
on
page
5Q]
investment.
Address—P. O. Box
4726, San Juan, Puerto Rico. Under¬
writer—Borinquen Associates, Inc., San Juan.
NEW ISSUE CALENDAR
^ Family Weekly Magazine, Inc., N. Y.
March
17
class A
(letter
Proceeds
of
notification)
200,000 shares of
($1.50 per share).
Office — 237 Madison
stock.
common
March
Merritt-Chapman & Scott Corp..*
Price—At par
March
filed
20
mon
stock
on
or
series,
cumulative
$50 (convertible into
par
(Offering
mon
stock
held
(with
Proceeds—For
general
(Bids
(Bids
11
9
(Offer
Springfield Corp., Springfield, Mass.
filed
shares
20,000
of
Proceeds
—
capital
stock
(par
For investment.
five
shares
one
new
$10).
Great Western
19
of
properties
share for
common stock (par 20
share. Proceeds—For development
held by it, for acquiring and holding
participating therein, for
or
Florida
1983.
2
Proceeds—To repay bank loans and for
Underwriters — To be determined
new
General
12
ferred stock.
For property
Price—At par ($20 per share).
additions.
Underwriter
manager.
•
-
Grand Bahama
Common
(Probably
First
April 28, 1953
(Offering
to
Alabama
Detroit
(par 10 cents). Price—Par for deben¬
tures and $1 per share for stock. Proceeds — For new
construction. Business — Hotel and larid development.
Stamping
-
*
(Bids
Allen & Co.)
Cof
and
Texas Utilities
(Bids
———
to
be
invited)
Common
|
.
■*
„■
June 9, 1953
Gulf Power
,
Debentures
f
Bond®
Co..
Common
by White, Weld
Debentures
2, 1953
Co._j._
underwriting)
Associates)
EDT)
11:30 a.m. EDT)
June
Brother*
Common
stockholders—underwritten
&
a.m.
May 26, 1953
f,-.East Tennessee Natural Gas Co
■
Bondto
11
Consolidated Natural Gas Co
(Bids
(White, Nobel & Co.)
(Offering to,
Debs.
(Bids 11:30 a.m. EDT)
1
Common
April 9, 1953
Co
Telegraph Co
be invited)
May 19, 1953
Light Co
Bonds & Preferred
Texas Power &
Preferred
Middle South Utilities Inc
stock
invited)
Power Co
Inc.)
stockholders—underwritten by Lehman
and Goldman, Sachs & Co.)
stockholders—no
to
(Bids
Preferred
April 8, 1953
Corp.
to
be
May 12, 1953
Bonds
Co., Inc
(Offering
Debenture®
to
(Bids
(Bids
CST)
stockholders—underwritten by
tp
invited)
May 5, 1953
*-•
(Paine, Webber, Jackson & Curtis and Sbearson, Bammill & Co.)
(Offering
be
Southern Bell Telephone &
Southwestern States Telephone Co
Jewel Tea
to
Montana Power Co._
Co., Inc.)
Bonds
Co.,
Bonds*
(Bids
Common
Republic
Corp. and A. E. Ames & Co., LtdL)
Co.__
EST)
Packard-Bell Co.
.*
EST)
noon
Common.
Boston
Detroit Edison
_=
Bonds
^
Preferred
EST)
a.m.
Aluminium Ltd.
EST)
a.m.
11
(Bids
.Class A
noon
•
April 24, 1953
McDowell)
&
Beane)
Louisiana Power & Light Co
Bonds
ajn.
&
April 21, 1953
Blackstone Valley Gas & Electric Co
•
Co., Ltd., Nassau (4/15)
11:30
Fenner
(Bids
Blosser &
Common
Merrill Lynch,
stockholders—underwritten by
Pierce,
EST)
a.m.
(Bids 11:30
'
Underwriter—Qearhart- & Qlis, Iuc.„ New York.
to
-Debentures
Straus,
Kentucky Utilities Co
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
April 16, 1953
(Offering
Bonds
(Bids
Proceeds—
Equip. Trust Ctfs.,
EST)
noon
Oklahoma Gas & Electric Co.
Common
Florida Power & Light Co
None, but Mitchum, Tully & Co., Los Angeles, Calif., will act as dealer-
T
EST)
a.m.
Texas-New Mexico Ry
April 7, 1953
—
Inc.)
Common
& Co.)
to stockholders—Barrfett Herrick
Fedders-Quigan
Otis,
&
(Bids
Independent Plow, Inc
pre¬
_____Debenture»
(Bids 11:30
Common
and
(Bids
(Offer
Common
Ltd
Morgan & Co.)
Co., Ltd
Inc.)
Common
Corp.)
Common
(Central
Telephone Co. of the Southwest
50,000 shares of 5V2% cumulative
Southern Co.
California Electric Power Co
Underwriter—None.
filed
Common
Bahama
Shields & Co.)
(Bids 11
—
March
Grand
Brockton Edison Co.
con¬
★ Forest Management Corp., Washington, D. C.
March 16 (letter of notification) 2,500 shares of common
stock.
Price
At par ($10 per share). Proceeds—For
working capital^ Office—1740 K Street, N. W., Washing¬
6, D. C.
Common
April 6, 1953
by com¬
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.
Debentures
Securities
(Union
(Gearhart
Industries, Inc.
Brothers
Common
stockholders)
to
Co
(Peter
Utilities, Inc.
(Lehman
Bonds
Inc
EST)
noon
Flock Gas & Oil Corp.,
Inc.)
Co.
struction.
ton
Ekco Products
(Israel & Co.)
Light Co. (4/7)
$15,000,000 of first mortgage bonds due
Service
Public
CST)
a.m.
Brothers, Inc
Kerr-McGee
Power &
filed
Common
11
April 2, 1953
Great Western Uranium Corp.
ex¬
Common
by Lehman Brothers
April 15, 1953
(Offering to stockholders—underwritten by
Kidder, Peabody & Co.)
per
leases
K.
Co.)
Smith, Barney & Co.)
(Offering
(Kidder, Peabody & Co.)
United
Orleans
,
and L. D. Friedman & Co.,
(McDonald
Thalhimer
ploration and drilling expenses, etc. Underwriter—Peter
Morgan & Co., New York.
March
& Fetzer
Barney &
stockholders—underwritten
underwriting)
Corp.
(G.
Scott
to
Debentures
Co.)
Associates,
Smith,
and
(Bids
Paley Manufacturing Corp.
held
now
and
New
Debentures
Co
Brothers
Second National Bank of Philadelphia
Exploration, Ltd
(Aetna Securities
filed 800,000 shares of
reservations
(Offering
Bonds
Yearbook, Inc
(No
North Pacific
* Flock Gas & Oil Corp., Ltd., Calgary, Can. (4/15)
March
&
stockholders—Bids
(Borinquen
Under¬
(with an oversubscription privi¬
lege).
Price—To be supplied by amendment.
Proceeds
—For construction program.
Underwriter—None.
cents). Price—$2
Eq. Trust Ctfs.
Equitable Insurance Co. (Puerto Rico)_Com. &Pfd.
Springfield, Mass.
be offered to stockholders at rate of
each
to
Stanley
Bonds
invited)
be
(P.) Co
CST)
a.m.
Central & South West Corp
(Morgan
Lorillard
and
working capital. Underwriter
Philadelphia, Pa.
First Securities Corp.,
(P.)
(Lehman
EST)
MST)
noon
(Bids
Lorillard
Common
a.m.
to
(Bids
r
Public Service Co. of Oklahoma
Fitchburg Gas & Electric Light Co.
March 6 filed 23,698 shares of capital stock (par $25) to
-
11:30
Common
and Prescott, Shepard & Co., Inc.)
(F. Eberstadt & Co. Inc.
Jersey Central Power & Light Co
Denver & Rio Grande Western RR
April 1, 1953
Allied Chemical & Dye Corp.
Price—At market.
Clevite Corp.
1953
reoffered to the previous purchasers. Price—25 cents
per
share. Proceeds — For expansion of business and for
Feb.
April 14, 1953
Bonds
California Electric Power Co
corporate
Corp., Philadelphia, Pa.
(letter of notification) 600,000 shares of common
(par one cent) which includes 22,190 shares being
writer—D. J. St. Germain & Co.,
(Bids 11:30 a.m. EST)
Common
31,
Bonds & Preferred
Texas Electric Service Co
Inc.
Hilliard & Son)
March
Securities
First
Co.,
(Blyth & Co., Inc.)
& Co., New York.
—
&
(G. H. Walker & Co.)
Jan. 21
stock
B.
J.
Blyth
West Coast Telephone Co.
an
purposes. Underwriter—Allen
First
J.
Common
underwriting)
stockholders—no
to
April 13, 1953
Common
by
National Gas & Oil Corp
oversubscription privilege);
about April 21. Price—To be sup¬
rights to expire on or
plied by amendment.
April 10, 1953
Co
(Offering
30, 1953
stockholders—underwritten
to
and
prior to May 1, 1953), to be offered for
common stockholders about April 8, at
preferred share for each 35 shares of com¬
one
Emerson Electric Mfg.
Kentucky Utilities Co.
pre¬
com¬
subscription by
rate of
Common
(Offering to stockholders—no underwriting)
March
41,250 shares of 5V2%
ferred stock, 1953
(Offering to stockholders—underwritten in part by Courts & Co.)
Mountain States Tel. & Tel. Co
ic Fedders-Quigan Corp. (4/8)
Common
Telephone Co
Common
(Offering to stockholders—no underwriter)
For working capital.
Ave., New York 16, N. Y. Underwriter—None.
—
Inter-Mountain
27, 1953
June
;
New York Telephone
:
11
a.m.
EDT)>
•
23, 1953
Co
f(Bids to be Ihvited) /
Bond®
„
60
(1358)
The Commercial and
Continued jrom page
49
it Louisiana Power & Light Co. (4/21)
19 filed
60,000 shares of cumulative preferred
stock (par $100). Proceeds—To retire
59,422 shares of $6
preferred stock presently outstanding. Underwriters—To
short-term
reduce
For 78,336 shares—Courts &
Underwriter—
notes.
Co., Atlanta, Ga., and New
York, N. Y.,
be determined by competitive
bidding. Probable bidders:
Blyth & Co., Inc. and Equitable Securities Corp. (joint¬
ly); W. C. Langley & Co. and The First Boston Corp.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Union Securities
Corp. Bids—Expected at noon (EST) on April 21.
International Glass Fibres Corp., Baltimore, Md.
(letter of notification) 61,960 shares of class A
common stock (par
$1). Price—$1.37Vz per share. Pro¬
ceeds—For working capital. Office—10
Light St., Balti¬
more 2, Md.
Underwriter—None.
March 6
Ispetrol Corp., New York
Oct. 29 filed
($100
par
49,500 shares of
stock.
common
Price—At
share). Proceeds—To finance purchase of
crude oil for Israeli enterprises and to
purchase crude
oil and oil products for resale in Israel.
Underwriter—
per
Israel Industrial & Mineral
Development Corp.
Oct. 6 filed 30,000 shares of class A stock. Price—At
par
($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter
Israel Securitiei
Corp., New York.
—
Israel Overseas
Corp. of New York
Feb. 17 filed 16,000 shares of
capital stock
$3,400,000 of 20-year debentures
debentures.
eral
and
Price—$2,500
corporate
to
be
$1
par
offered
in
and
units
$1,700 principal amount of
unit.
per
Proceeds—For gen¬
Underwriter—None.
purposes.
Jefferson Lake Sulphur Co., New
Orleans, La.
(letter of notification) 1,700 shares of common
March 2
stock
(par $1). Price—At market (approx. $21.37%
per
share). Proceeds—To F. Lloyd Monroe, the
selling stock¬
holder. Underwriter
None, but James E. Bennett &
Co., Chicago and New York, will act as agent.
—
★
Jersey Central Power & Light Co.
(4/14)
$8,500,000 of first mortgage bonds due
1983. Proceeds—For construction
program. Underwriters
March
—To
16
be
filed
determined
by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; White, Weld & Co.
and Shields & Co.
(jointly); Equitable Securities Corp.;
The First Boston
Corp.; Salomon Bros. & Hutzler; Glore,
Forgan & Co.; Kidder, Peabody &
Co.; Harriman Ripley
bidders:
& Co. Inc.
Bids—Expected to be received April 14.
Jewel Tea Co., Inc.
(4/8)
March 17 filed 141,757 shares of
common stock (par
$1)
to be offered for
subscription by common stockholders
of record April 8 at rate of
share for each eight
shares held; rights to
expire April 23. Price—To be
sup¬
one
new
plied by amendment. Proceeds—For
working capital, etc.
Underwriters—Lehman Brothers and
Goldman, Sachs &
Co., both of New York.
Underwriter—Wachob-Bender Corp., Omaha,
Kentucky Utilities
Co.
(3/30)
March 9 filed
208,057 shares of
be offered for
subscription
to
common
by
of record March 20
at the rate of
10 shares
stock
common
one
new
(par $10)
stockholders
share for each
held; rights to expire on April 13.
Price—To
be supplied
by amendment. Proceeds—For new construc¬
tion.
Underwriters—Blyth & Co., Inc., New York; J. J.
B. Hilliard &
Son,
Louisville, Ky.
Kentucky Utilities
Co.
(4/7)
March 9 filed
$10,000,000 first mortgage
bonds, series E.
due April
1, 1983. Proceeds—To repay bank
loans and
new construction.
Underwriters—To be determined
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.;
Equitable Securities Corp. Bids—To
be received
up to
11:30 a.m.
(CST) on April 7 at 20 No. Wacker
Drive,
Chicago 6, 111.
for
★
Kerr-McGee
Industries, Inc.
(4/2)
March 11 filed
$10,000,000 of 4V2% convertible subor¬
dinated debentures due
April 1, 1968. Price—To be
sup¬
plied by amendment.
Proceeds—For
general
purposes.
corporate
Underwriters—Lehman Brothers, New
York;
&
McDowell, Chicago, 111.
★ Kost Multiple X,
Inc., Portland, Ore.
and
Straus, Blosser
March
13
(letter of
mon
notification) 50,192 shares
stock (par 10
cents) to be offered in
for
share, for stock
of
exchange, share
Lenoir Finance
Co.,
March 13 (letter of
vertible
subordinated
common
stock
(par
Lenoir, N. C.
notification) $150,000
debentures and
$10). Price—At
of
4,000
6%
con¬
shares
of
—
,
March
pril
25
1,
(P.)
filed
1978.
Co.
—
To
of
be
25-year
★ Lorillard
Co.
due
Underwriters—Lehman
Smith, Barney & Co., both
(P.)
debentures
supplied by amendment.
Proceeds—To reduce bank
loans.
Brothers and
of New York.
(4/14)
March 25 filed
356,573 shares of common
stock
be offered for
subscription
(par $10)
by present stockholders
to
on
basis
of
Warrants
of
April.
ceeds—To
one
new
are
share
expected to
Price
To be
reduce
for each
be
mailed
supplied
bank
loans.
by
seven
about
shares held
the
middle
amendment.
Pro¬
Underwriters—Lehman
Brothers and Smith,
Barney & Co., both of New York.
for
each share
it Marsh Foodliners, Inc., Yorktown, Ind.
16 (letter of
notification) $300,000 of collateral
sinking fund convertible 5V2% debentures and 24,-
March
000
shares
of
common stock
(no par value) to be re¬
of debentures. Price—At
par (in
denominations of $1,000 and $500). Proceeds—For
work¬
served
for conversion
ing capital.
Office—Deport St., Yorktown, Ind. Under¬
writer—City Securities Corp., Indianapolis, Ind.
Mathieson Chemical Corp.,
Baltimore, Md.
March 6 filed 350,000 shares of common
stock (par $5)
company's "Restricted Stock Op¬
tion Plan to Certain Officers and Other
Key Employees"
of the company and its
subsidiaries. Proceeds—For gen¬
eral corporate purposes.
Underwriter—None.
to be offered under the
(Glenn), Inc.
June 12 filed 10,000,000 shares of
common stock (par 25
cents). Price—$2 per share. Proceeds—For
drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V.
Houston, Tex. Dealer Relations
Christie
&
3
filed
121,322
Scott Corp.
shares
of
stock
(par
$12.50) to be offered for subscription by common stock¬
holders of record March 27 at rate of one
new
each five shares
held; rights to expire
—To be supplied
capital
and
corporate
of stock and
subscription
warrants for 40 shares.
Price^Proceeds—For drilling of additional weils
purchase producing wells.
Underwriter—M. S.
052 per unit.
and
to
Gerber, Inc., New York. Financing
may
be revised.
it Oklahoma Gas & Electric Co. (4/16)
March 19 filed 241,195 shares of common stock
(par $10)
to be offered for subscription by common stockholders o
record about April 16 at rate of one new share for eac
10
shares
held
(with an oversubscription privilege);
rights to expire on May 5. Price — To be supplied by
amendment.
Proceeds
derwriter—Merrill
York.
—
For construction
program.
Un¬
Lynch, Pierce, Fenner & Beane, New
.
-
.
Overland Oil, Inc., Denver, Colo.
Dec. 23 filed 300,000 shares of common
cents).
Price—20
geological
survey
cents
share.
per
stock (par"10
Proceeds—To make
of land. Business—Oil
ana
gas explor¬
ation. Underwriter—None.
Pacific Western
Stores, Inc., Los Angeles. Calif.
(letter of 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
Charles
Flake
Palestine
Underwriter—
per
and
Economic
March"6 filed
1
Mex-American Minerals
Corp., Granite City, III.
Nov. 3 filed 113,000 shares of
6% cumulative preferred
stock (par $5) and
113,000 shares of common stock (par
10 cents) to be offered in
units of one share
filed
expansion and working capital.Underwriters—Paine,
Webber, Jackson & Curtis, Boston and New York; and
Shearson, Hammill & Co., New York.
'Vf
on
purposes.
None.
Oils
Ltd., Canada
1,000,000 shares of capital stock (par ,2
cents—Canadian) and subscription warrants for 600,00
shares, of which the stock and subscription warrants to
400,000 shares are to be offered in units of 100 shares
21
For
share for
April 14. Price
by amendment. Proceeds—For working
general
Northland
Nov.
^Packard-Bell Co., Los Angeles, Calif. (4/7)
March T8 filed 100,000 shares of
capital stock (par 50
cents).-Price—To be supplied by amendment. Proceeds—
(3/27)
common
(4/1),
Canadian). Price—$1 per share (U. S. funds). Proceed
—For exploration costs. Underwriters—Aetna Securitie
Corp. and L. D. Friedman & Co., Inc., both of New York
White &
Representative—George
Merritt-Chapman &
(Canada)
share. Proceeds—To Fred Meyers,
Joseph Solomon.
UnderwritersCo., St. Louis, Mo.; Gearhart & Otis, Inc., New
York, and Peters, Writer & Christensen, Inc., Denver,
Colo.
No general public offer planned.
Co.,
A. (Searight, 50
Broadway, New York, N. Y. Telephone
WHitehall 3-2181. Offering—Date
indefinite.
March
Exploration, Ltd.
Feb. 4 filed 1,375,000 shares of capital stock
(par 25 cents
March 2
McCarthy
Price—$28
,
Israel
Corp., New York
100,000 shares of
per
share.
industry, etc.,
common
Proceeds
and
for
writer—None.
stock
(par $25).
For
development of
working capital. Under¬
—
•
'•
•.
•
Paley Manufacturing Corp. (4/1)
JarfFt& (letter of notification) 99,000 shares of
common
stock (par 25 cents). Price—$3
per share. Proceeds—
For expansion and working
capital. Office—Brooklyn,
N. Y Underwriter—G. K. Shields &
Co., New York.. <
each
Price—$6 per unit. Proceeds—For work¬
ing capital. Business—Purchase,
processing, refining and
sale of Fluorspar. Underwriter
To be supplied by
—
amendment.
Mid-Gulf Oil & Refining Co.
Nov. 10 (letter of
notification) 400,000 shares of common,
stock (par five cents). Price—60
cents per share. Pro¬
ceeds—To acquire additional
it Paradise Golf Properties, Inc., Phoenix, Ariz.
< *
March 20 (letter of notification)
3,000 shares of capital
stock. Price—At par ($100 per
share). Proceeds—To de¬
velop golf course. Office—703 Heard. Bldg., Phoenix,
properties. Office—927-929
Market St., Wilmington, Del.
Underwriter—W. C. DoebCo., Jersey City, N. J.
Ariz. Underwriter—None.
ler
it Middle South Utilities, Inc.
March 20 filed 475,000 shares of
be
Paradise
Valley Oil Co., Reno, Nev.
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
Aug.
(4/8)
common stock
(no par)
for subscription
by common stockholders
April 8 at rate of one new share for each 14
shares held (with an
oversubscription privilege); rights
to expire April 28. Price—To
be supplied by amendment
(to be fixed April 7). Proceeds—For investment
to
offered
purposes.
of record
in the
stocks of its System
operating companies and to
or a portion of sums which
have been bor¬
rowed for such investments.
derwriter—None, with sales to be
basis (selling commission is two
-
made
on
Un¬
commission
a
cents per share), Of¬
fice—c/o Nevada Agency & Trust Co., Inc.,
Cheney Bldg.
139 N. Virginia St., Reno, Nev.
common
repay
Peninsular Telephone Co.,
27 filed 73,241 shares of
all
Underwriter—None.
Mountain States Tel. & Tel. Co.
at
(3/27)
held; rights to expire April 29. American
Telephone &
Telegraph Co.
(parent)
now
owns
1,351,203 shares
(86.41%) of presently outstanding capital stock. Price—
At par
($100
per share). Proceeds—For
property addi¬
improvements. Underwriter—None.
tions and
it Mutual Fund of Boston, Inc.,
Boston, Mass.
March 23 filed 10,000 shares of
capital stock. Price—At
market.
Proceeds—For
investment.
Feb.
Underwriter—Rus¬
sell, Berg & Co., Boston, Mass.
rate of
one
March
5
Gas
filed
&
Oil
Corp. (3/30)
$1,650,000 first mortgage
be
bonds
due
supplied
by amendment.
$1,349,000 of 4%% debentures
(outstanding Feb. 28, 1953), to repay $135,000 bank loans:
and for working
capital. Underwriter—G. H. Walker &
Co., New York and Providence (R. I.)
March
10
Terminal, Inc., San Diego, Calif.
(letter of notification) 30,000 shares of
6%
Price—At par ($10 per
share).
—For general corporate
purposes.
Bank Bldg., San Diego
1,
Calif.
Proceeds
Office—U. S. National
Underwriter—Wahler,
City, Mo., and associates.
it Natural Resources Fund,
Inc., New York
March 23 filed 1,872,704 shares
of capital stock.
At market.
Proceeds
For investment.
Frank L. Valenta &
Co., Inc., New York.
New Orleans
March 12 filed
—
Public Service Inc.
Price—.
Underwriter—.
(4/14)
$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—To be received up to noon
April 14.
(no
par)
stockholders
share for each five shares held
as
of
18; rights to expire April 1. Certain officers and
employees will be entitled to purchase unsubscribed
shares. Price—$40 per share. Proceeds—For construction
Underwriter — Morgan Stanley
Coggeshall & Hicks, both of New York.
program.
it Pennant Drilling Co.,
&
Co.
and
Inc., Denver, Colo.
March 17 (letter of notification)
10,000 shares of comrhon
stock (par $1).
Price—At market
(approximately $1.30
per
share).
Proceeds
stockholder.
Office
Denver, Colo.
—
—
To
622
Morris
First
Replin, the selling
National
Bank
Bldg.;
Underwriter—Franklin M. Vess.
-
^
Oil
Concessions Co., Inc., Dover, Del. i
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
frond/ the Peruvian Government.
Underwriter—None.
Phillips Packing Co., Inc.
2 (letter of notification) 3,000 shares of
common
(no par). ' Price—At market (approximately $6
per share).
Proceeds—To Theodore Phillips, the selling
Feb.
National Marine
preferred stock.
new
stock
common
March
Peruvian
National
Tampa, Fla.
common
being offered for subscription by
March 6 filed 390,931 shares of
common stock to be of¬
fered for subscription
by common stockholders of record
March 27 at rate of one new share
for each four shares
White & Co., Kansas
(4/14)
$22,500,000
Price
shares
trust
March 1, 1973.
Price—To
Proceeds—To redeem
principal amount
(in denominations of
$25 each) for
debentures; and $20
per share for stock.
Proceeds
For
working capital.
Underwriter—McCarley & Co., Inc., Asheville, N.
C.; McDaniel Lewis &
Co., Greensboro, N.
C.; Interstate Secu¬
rities Corp.,
Charlotte, N. C.
★ Lorillard
five
Underwriter—None.
com¬
presently outstanding. Underwriter—
None.
and
preferred stock.
class of stock.
Telephone Co.
notification) $206,000 of 4V2% first
mortgage bonds, series A, due Feb.
1, 1977. Price—100%
and accrued interest.
Proceeds—For general corporate
Nebraska.
stock
common
of
Junction City (Kan.)
March 3 (letter of
purposes.
Northern
of Northern
Israel Securities Corp., New York.
of eight shares of stock
it Marathon Corp., Menasha, Wis.
20 filed 614,872 shares of common stock
(par
$6.25) to be offered in exchange for stock of Northern
Paper Mills on the basis of six shares for each share of
March
,yaMarch
dsruhT.norh26,
C
195'
North Pacific
March
Proceeds —To
Financial
(EST)
on
stock
.
stockholder.
more,
Underwriter—Alex. Brown
Md.
&
Sons, Baltit
.
.
>
Pioneer
Telephone Co., Waconia, Minn.
March 10 (letter of notification) 3,000 shares of
5%%
cunmmtive preferred stock, series C. Price—At
par ($100
per share).
Proceeds—For additions and improvements.
Underwriter—M. H. Bishop & Co., Minneapolis,
Minn.
Public Service Co. of Oklahoma (3/31)
March 9 filed $6,000,000 of first
mortgage bonds
due
MaHtel,
1983.
Proceeds—For property additions and
improvements. Underwriters—To be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co.
Inc.; Salomon Bros. & Hutzler; White, Welt & Co. and
(jointly); Glore, Forgan & Co.; Harriman
Ripley & Co. Inc.; The First Boston Corp.; Kuhn, Loeb
Shields & Co.
& Co. and Union Securities
Inc.redder, Peabody & Co.
Corp. (jointly); Blyth & Co.,
and Stone & Webster Secu-
Volume 177
Number 5206
The
...
Commercial,and Financial Chronicle
rities Corp.
(CST)
(jointly). Bids—To be received up to. 11 a.m.
March 31 at 20 N. Wacker Drive, Chicago 6,
on
pi.
'
J)' Resort
Airlines, Inc., Miami, Fla.
Texas Electric Service Co.
(4/13)
$7,000,000 of first mortgage bonds due
1983 and 100,000 shares of cumulative
preferred stock
(no par). Proceeds—For new construction. Underwriters
March
—To
9
bidders:
stockholders
rill
share.
on
a
basis.
rata
pro
Proceeds—For
working
Price—20
capital.
£42, International Airport, Miami
cents
per
Address—Box
48, Fla.
Underwriter
fl-None.
★ Rokeach (I.) & Sons, Inc., N. Y.
March 17 (letter of notification) $236,454 of convertible
subordinated
debentures due June
30,
1958
(con¬
vertible into class B
common stock, par $5, on basis 01
share). Price—90% of principal amount. Proceeds
-For working capital. Office—79 Madison
Ave., New
York 16, N. Y. Underwriter—None.
$7
per
★
Rocky Mountain Oil Corp., Denver, Cold>
notification) 237,500 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
working capital. Underwriter—Steele & Co., New York.
Offering—Now being made.
'March 4 (letter of
Scott & Fetzer
March
Co., Cleveland, Ohio
10 filed 64,000 shares
(Price—To
be
supplied
by
amendment.
determined by competitive bidding. Probable
(1) For stock, Kidder, Peabody & Co. and Mer¬
Lynch, Pierce, Fenner & Beane (jointly); Kuhn,
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
First Boston Corp.;
Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Hemphill,
Noyes & Co. and Drexel & Co. (jointly). Bids—Expected
be received up to 11:30 a.m.
to
(par $5).
Proceeds—To
.five selling stockholders. Underwriter—McDonald &
At market.
April 13.
on
Proceeds
—
For investment.
stock
ceeds—To drill oil and gas wells and for
acquisition ol
properties. Underwriter—Peter W. Spiess Co., New York
Security Oil Co., Denver, Colo.
(letter of notification) $250,000 of series A 1953,
Texas Western Oil Co.,
notification) 100,000 shares of common
(par 10 cents). Price—50 cents per share. Proceeds
working capital.
Underwriter
drill
Textron Incorporated,
Providence, R. I.
March 9 (letter of
notification) 10,000 shares of $1.25
convertible preferred stock (no par). Price—At market
Olfice—501
Empire
Bldg.,
Colo.
Denver,
Underwriter—Underwriters, Inc., Denver, Colo.
Seiberling Rubber Co., Barberton, Ohio
(letter of notification) 15,420 shares of
,
Feb. 19
common
for
•
will
common
(par $1) to be offered in exchange for 7,710 shares
(Canada)
on
each
expire
stock
of
Seiberling Rubber
Co.,
Ltd,
the basis of two shares of the QJhio firm
share
on
of
the
March 23.
Canadian
company..rThe offer
Underwriter—None.
riman Ripley & Co., Inc., Boston, Mass.
..I?
Shirks Motor Express Corp. (Del.)
Jan. 8 (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,
Lancaster, Pa. Underwriter—Alex. Brown & Sons, Bal¬
timore, Md.
;
<
'pa¬
Precision Corp.
March 13 (letter of 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.r Underwriter—None.
'Tf
★ Sorenson & Co., Stamford, Conn.
18 (letter of notification) $200,000 of 5-y.ear 7%
March
Price—At
(in denominations of $1,000
each). Proceeds—For working capital. Office—375 Fair¬
field Ave., Stamford, Conn. Underwriter—None:.j*
Southern Co.
Offering—Date not set.
(approximately $17
per
corporate purposes.
share).
par
Underwriter—Blair, Rollins & Co.,
Inc., New York City.
This is not
(4/15)
supplied by amendment.
>-
conduct loan business.
this stock and
ical Co.,
Inc.
50 shares of United
Price—$50
tion of sulphur plant.
unit.
per
York.
United Sulphur & Chemical
Co.,
March 13 (letter of
stock
(par
connection
with
mon
of
10
cents)
to
be
(See
issued
as
a
com¬
bonus
in
unit
to
consist
of
50
shares
of
shares
50
also
preferred
of
United
common
Minerals
Corp. above.)
(with an 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¬
March
sidiaries.
cumulative
by competi¬
Inc.
offering of 250,000 shares of preferred
Minerals Corp. and to be offered in
United
Sulphur.
determined
United
Telephone Co., Bellefontaine, Ohio
(letter of notification) 2,500 shares of
12
preferred stock.
Price—At par ($100 per
— For
plant expansion.
Office — 127
St., Bellefontaine, Ohio. Underwriter—None.
tive
share).
No.
rill
March 10 filed 319,122 shares of common stock
(par $10)
co be offered for
subscription by common stockholders
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.
Indiana Gas & Electric Co.
be
record
six
offered
for
shares
of
subscription
25
held;
at
rate
of
by
Proceeds—To
construction.
common
one
new
on
Underwriter
—
fo'r
share
April
repay
(ho par)
stockholders
each
loans
and
Smith, Bkfney &
Co., New York.
★
Southwestern
March
stock
16
filed
(par $25).
States
60,000
Telephone Co.
shares
Price—To
be
of
cumulative
preferred
supplied by amendment
yield of somewhatT>etter
Star Air
Feb. 4
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,
proceeds—To purchase Quaker City Airways, Irtc: (Pa.),
to
purchase operating certificates and for
ital.
Office—2 East 33rd St., New York.
None.
working
cap¬
Underwriter—
7"d
\
★ Sunbeam Oil Co., Brush, Colo.
'
March 19 (letter of
notification) 100,000 shares of capital
stock (par $1).
Price—$3 per share. Proceeds—fW oil
and gas lease interests and
—J. W. Hicks &
working capital.
Co., Inc., Denver, Colo;
Underwriter
^
★ Texas Anadarko Oil Corp., N. Y.
March 16 (letter of
notification) 300,000 shares of com¬
mon
stock (par 10 cents). Price — SI per shafg. Pro¬
ceeds—To acauire leases. Office—220 East 42nd
St., New
York.^ N. Y. Underwriter—R. V. Klein
Offering—Being
made today.
of record
Co., New York.
-Jr
on
or
about
March 31
share for each 2M» shares
To
Price—To
acquire
phone Co.
a
be
at
(4/1)
the rate of
one
new
held; rights to expire on April
by amendment. Proceeds—
supplied
reported company may offer rights to its
was
capital stock (par $10) on a l-for-3 basis. Underwriter
—Blyth & Co., Inc., New York. Offering—Expected in
April
May.
or
Alabama Power Co.
Jan. 28 it
of
was
(5/12)
reported company plans issuance and sale
$18,000,000 first mortgage bonds due 1983.
Proceeds—
Underwriters—To be deter¬
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 & Co. (jointly); Lehman Brothers;
program.
First
Boston
expected at 11
★
Corp.; Harriman Ripley & Co., Inc.
for April 10.
Bids—Tentatively
(EDT)
a.m.
Aluminium Ltd.
March 19 it
to
subscribe
announced that company
was
plans to offer
stockholders of record April 24 the right
common
shares of
May 12.
on
(4/24)
on
or
common
before
May 15 for 818,657 additional
stock at the rate of
one
new
share for
each 10 shares held. Price—Not to exceed $37.50.
dian)
per
(Cana¬
share. Proceeds—For expansion program. Un¬
derwriters—The First Boston
Co.,
Ltd.,
stock
acted
as
Corp., and A. E. Ames &
dealer-managers
in
October,
offering to stockholders.
Arkansas
2
it
Power &
1951,
_
Light Co.
announced
company may issue and sell,
probably in June, 1953, about $18,000,000 of first mort¬
bonds. Proceeds—To repay bank loans and for
was
gage
construction.
new
Underwriters—To
competitive bidding.
be
determined
Co.
Inc.; Lehman Brothers and Stone & Webster Secu¬
rities Corp. (jointly); The First Boston Corp.; White,
Weld & Co., Blyth & Co. Inc., Equitable Securities Corp.
and
Central
Republic Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp.
two-thirds stock interest in Investors Tele¬
★ Arkansas Power & Light Co.
March 20 it was announced that company may consider
refunding the outstanding 47,609 shares of $7 preferred
stock
(no par)
and 45,891 shares of $6 preferred stock
(no par), both called at $110
per
To be determined by competitive
share. Underwriters—
bidding. Probable bid¬
ders.
Blyth & Co., Inc, and Equitable Securities Corp.
(jointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties
Corp.
1
Underwriter—Kidder, Peabody & Co., New
Continued
on
page
Vault Co. of
America, Davenport, Iowa
(letter of notification) 10,000 shares of common
$10 per share. Proceeds — For working
March 2
stock.
Price
—
blowing
Our clients
Victoreen Instrument Co.
Feb.
12
(letter of notification) 15,000 shares of common
(par $1). Price—At market (approximately $5.25
share). Proceeds—To E. A. Benson and R. F. Shima,
their tops
your
the two
selling stockholders.
Underwriter—Barrett Her-
rick & Co., Inc., New York.
because
cents)
to
be
offered
share of stock.
ment.
in
units of
Price
Proceeds—From
pro¬
ducing superior printing
is routine at
Sorg—even
against the most immi¬
West Coast Pipe Line
Co., Dallas, Tex.
Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.
15, 1964. and 580.000 shares of common stock (par 50
one
top?
blow
never
stock
per
one
$50 debenture and
To be supplied by amend¬
sale of units and 1,125,000 addi¬
—
common stock and private sale of
$55,000,000 first mortgage bonds, to be used to build a 1,030
mile crude oil pipeline. Underwriters — White, Weld &
and Union Securities Corp., both of New York. Of¬
nent deadline.
They know the quality they can expect
specialists with over thirty years'
experience in every type of financial,
corporate and legal printing . . . handled,
from
at
Sorg,
from design
through
mailing.
Co
fering—Expected in the Spring of 1953.
West Coast
Nov.
Pipe Line Co., Dallas, Tex.
filed 1,125,000 shares of common stock (par 50
Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
20
cents).
line.
Underwriters—White, Weld & Co. and Union Se¬
curities Corp., both of New York.
the Spring of 1953.
by
Probable bidders: Halsey, Stuart &
York.
tional shares of
-m: :
-
Utilities, Inc., Abilene, Kan.
capital. Underwriter—A. J. Boldt & Co., Davenport, la.
(4/7T1
(expected to be at par with a
than 54/4 %). Proceeds—For construction
program?.j Un¬
derwriter—Central Republic Co. (Inc.), Chicago1; Rl.
*
United
lO/i) Price—
bank
Proceeds
Main
14.
stock
common
rights to expire
share.
per
new
for
March
shares
$24.50
114,167
March 2 it
stockholders to subscribe for 100,000 additional shares of
(jointly).
5%
able
bidding. Probable bidders: Blyth & Co., Inc.; Equit¬
Securities
Corp.
and
Union
Securities
Corp.
(jointly); The First Boston Corp.; Lehman Brothers;
Morgan Stanley & Co.; Kidder, Peabody & Co. -and Mer¬
Prospective Offerings
Agricultural Insurance Co.
Feb.
notification) 250,000 shares of
United
held
erec¬
BldC'Salt Lake
Underwriter—Greenfield & Co., Inc., New
City 1, Utah.
of
shafes
17
Sulphur & Chem¬
Proceeds—For
Office—518 Felt
stock
if
brokers.
to its
oh the
each
Weldon, Phoenix, Ariz.
United Minerals Corp., Salt Lake
City, Utah
March 13 (letter of
notification) 250,000 shares of 5%
cumulative convertible preferred stock
(par $1) to be
offered in 5,000 units, each unit to consist of 50 shares
and
be
(4/1)
(par $5),
Underwriter—None.
Minerals
te
(Thomas) Orchids, Inc.
(letter of notification) 3,300 shares of common
(par $1). Price—At market (about $33 per share).
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
For construction
Office—7
United
Southern
Young
Registration—Planned
of
execu¬
its subsidiaries.
★ Winchester Industries, Inc. (Va.)
March 20 (letter of notification) 75,000 shares of com¬
mon stock.
Price—$1 per share. Proceeds—For working
capital. Office—36 River Edge Road, River Edge, N. J.
The
each
<
employees of corporation and
★ United Finance Corp., Phoenix, Ariz.
March 18 (letter of
notification) 300,000 shares of capi¬
tal stock.
Price—At par ($1 per share).
Proceeds—To
of
Underwriters—To
No
Proceeds—For working capital.
units,
share for
stock to be offered under "Restricted
common
Option Plan" to certain officers and other
Underwriter—Kidder, Peabody & Co., New York.
stock
new
offering.
new
Thalhimer Brothers, Inc.,
Richmond, Va.
March 12 filed 101,500 shares of common stock
March 13 filed 1,004,869 shares of common stock (par $5)
common stockholders of record-April 16
basis of ohe
a
general public offer is planned.
stock
to be offered to
March 3 filed
tive
Proceeds—For general
99,000 shares are to be offered by the company
and 2,500 shares by a selling stockholder. Price—To be
March 23 filed 10,000 shares of capital stock. Price—At
market.
Proceeds—For investment.
Underwriter—Har¬
Silver Creek
Office—1 Main St., Houston, Tex.
Khoury & Co., Inc., New York.
Scott,
—
of which
★ Shareholders' Trust of Boston
debentures.
Stock
Houston, Tex.
stock
—For
of
ployees of corporation and six subsidiaries, and 498,735
shares of
Nov. 12 (letter of
March 5
stock
Westinghouse Electric Corp.
Feb. 27 filed 200,000 shares of common stock (par
$12.50)
to be offered under "Employee Stock Plan" to Em¬
stock
five-year 10% debenture bonds. Price—At par (in denpminations of $25 and multiples thereof). Proceeds—To
wells.
Inc.,
New York and San Francisco.
March 10
Exploration Co., Ft. Worth, Tex.
(letter of notification) 1,200,000 shares of com¬
(par 10 cents). Price—25 cents per share. Pro¬
5
(3/30)
March 9 filed 50,000 shares of common stock (par $20).
Price—To be supplied by amendment.
Proceeds—For
construction program.
Underwriter—Blyth & Co.,
Underwriter—None.
Texas Oil
Dec.
West Coast Telephone Co.
51
Price—
Underwriter—
Bradschamp & Co., Houston, Tex.
Co.,
Cleveland, O.
(EST)
★ Texas Fund, Inc., Houston, Tex.
March 23 filed 2,000,000 shares of common stock.
mon
(4/1)
of common stock
filed
be
March 6 (letter of notification) 724,687 shares of common
stock (par 10 cents) to be offered for subscription
by
(1359)
Offering—Expected in
SORG
MINTING CO., Inr.
811 SIIUTH SI., NEW VOHk 28, N. V.
financial,
{£vyal;
52
52
(1360)
The Commercial and Financial Chronicle...
Thursday, March 26,
iContinued
from
page
share.
51
March 16 it
staled that the company may
was
later
exact nature
Smith, Barney & Co.
—
may
Young of F. J. Young & Co., New York is
head group.
a
March
March
stock.
24
shares
stock
common
of
securities,
or
to
portion of which will
the
at
authorize
stock.
common
a
debt securities convertible into
Stockholders
voted
an
annual
additional
Underwriters
body & Co. and Estabrook
&
Co.
—
meeting
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),
costs.
•
company
may
preferred stock.
issue and sell
Underwriters—To
construction
April 14 will vote
on
debentures.
new
meet
to
on
Underwriter—None.
sought permission
company
Commission
to
issue
and
Co.
for
construction.
new
the
Registration planned for March
expected to be received on April 28.
announced company plans sale of
trust mortgage bonds due 1973.
was
collateral
000
Under¬
Corp. (jointly); The.
Bolton Corp.; White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly). Bids—Tentatively expected
First
in
April.
if El Paso Natural Gas Co.
March
25
it
announced
was
plans
company
place
to
privately $120,000,000 of first mortgage bonds and sell
publicly some preferred stock and debentures (in addi¬
Cinerama Productions
Corp.
was reported
company plans issuance and sale
«of about 500,000 shares of
common
stock. Price—Ex¬
pected to be around $10 per share.
tion to the
Jail. 9 it
offer
of 883,882
and second
common
shares of
common
stock
preferred stockholders—see
a
to
pre¬
ceding column). Underwriter—White, Weld & Co., N. Y.
Underwriter—Hay«ten, Stone & Co., New York. Offering—Postponed.
General Public Utilities
Feb.
Columbia Gas
System, Inc., N. Y.
and
announced company
plans to issue and sell
(probably sufficient to raise between
3*20,000,000 and $25,000,000) and additional debentures
nearly in the Spring of 1953. Proceeds—To
repay bank
11
it
sale
reported
was
this
summer
stockholders
common
Corp.
of
on a
additional
common
stock
to
l-for-15 basis.
Pierce, Fenner & Beane acted
as
Merrill, Lynch,
clearing agent in last
2toans and for construction
program.
Underwriters—To
toe determined by
competitive bidding. Probable bid¬
ders:
For
stock,
Merrill
Lynch, Pierce,
Fenner
■4fc Beane, White, Weld & Co.
and
R. W. Pressprich
& Co.
(jointly); Morgan Stanley & Co. For debentures,
.Halsey, Stuart & Co. Inc.; Morgan
it Government Employees Corp., Washington, D. C.
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
toelp finance a $500,000,000 construction
program during
dhat period. No conclusion has
been reached as to the
★ Gulf Life Insurance Co., Jacksonville, Fla.
March 20 it was reported E. L.
Phillips, Jr., President,
and others would sell about
150,000 shares of capital
stock to an investment
banking group headed by Equit¬
able Securities Corp. and R. S. Dickson &
Co., who plan
of
sued
to be issued or when
they will be sold.
Probable bidders for bonds:
Halsey, Stuart & Co. Inc.;
3£uhn, Loeb & Co., Lehman Brothers and
American Se¬
curities Corp.
(jointly); Glore, Forgan & Co.; The First
Boston Corp.
(Glore, Forgan & Co. and The First Bostop, Corp. underwrote an
offering of convertible pre•
.March 13 it
writers
was
sell
—
Probable
To
be
bidders:
Salomon
ferred
Cooper,
will
stock
by competitive bidding.
Stuart & Co. Inc.; Morgan
President,
on
Boston
said
unlikely
that
the
increasing the
200,000
to
that
plans for immediate sale of
is
be
de¬
&
Hutzler and
Drexel
&
Co.
Corp.
Brothers. Registration—Planned for
May 8. Bids—
Tentatively expected at 11 a.m. (EDT) on June 9.
(jointly);
Gulf
& Curtis
Jan.
300,000
the
authorized
shares.
management
pre¬
Stuart
has
no
Delta Air Lines,
Inc., Atlanta, Ga.
Feb. 11 company filed an
application with SEC covering
proposed issue of $10,695,846 of
5Yz% convertible de¬
bentures (subordinated) to be
issued in exchange for
(Chicago 8c Southern Air Lines,
common stock
under
$21 of debentures for each C. & S.
announced
was
$6,000,000 in
Co.
company
common stock in
is planning to sell
June and
a
certain amount
mortgage bonds later in the year. Proceeds—For
construction program, expected to cost between
$26,000,000 and $28,000,000 this
year. The exact amount of the
bond
offering has not yet been determined. Under¬
common stock to be determined
by compet¬
itive bidding. Probable bidders:
Merrill Lynch, Pierce,
Fenner & Beane and Lehman Brothers
writers—For
(jointly); Stone
Corp.; Carl M. Loeb, Rhoades & Co.
on
any would be issued within
the next year.
merger plan at rate of
16, it
Utilities
& Webster Securities
stockholders
any preferred stock and that
Inc.,
States
of first
Co., Detroit, Mich.
announced
vote
Underwriters—To
program.
man
&
from
plans issuance and sale
Halsey,
Delaware Power &
Light Co.
April 21
Bros.
Helicopter Air Service, Inc., Chicago, III.
Feb. 9 it
•
a
High Voltage Engineering Co., Cambridge, Mass.
Feb. 18 it
of
was
$800,000
reported company plans early registration
4% -6% convertible subordinate debentures
20,000 shares of common stock to be offered
due 1967 and
in units of
.•
»
.
«
a
$1,000 debenture and
\
:
company
of
amount
has
$40,300,000
Blyth & Co., Inc. and The First Boston Corp.
(jointly): W. C. Langley & Co.: Smith, Barney & Co.
•
Louisiana Power & Light Co.
March 20 it
in
June
announced company may
was
$12,000,000
writers
To
be
of
first
issue and sell
bonds.
mortgage
Under¬
determined
by competitive bidding
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and A. C. Allyn & Co., Inc.
—
(jointly); Blyth & Co., Inc.; White, Weld & Co. and
& Co. (jointly); Salomon Bros. &
Hutzler; W.
Shields
C. Langley & Co., The First Boston
Corp., and Glore,
Forgan & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co.
(jointly); Harri¬
man
Ripley & Co., Inc.; Equitable Securities Corp.
of
17
it
reported early registration is expected
common stock. Proceeds—To selling
was
200,000 shares of
stockholders.
Underwriter—A.
G.
Becker
&
Co.,
Inc.,
Chicago, 111.
Maremont Automotive Products,
Inc.
reported early registration was expected
approximately 210,000 shares of common stock, part
March 6 it
of
was
for account of company and part for selling stockholders.
Underwriters — Hallgarten & Co., New York; Straus,
Blosser
& McDowell,
Chicago, 111.
and
McCormick
&
Co.,
both
of
•
Marion Power Shovel Co.
March
John P. Courtright, President, reported that
plans some long-term debenture financing. The
are expected to be used to retire bank loans
and to pay preferred dividend arrearages.
5,
company
proceeds
Metropolitan Edison Co.
Feb. 11 it
reported company plans to issue and sell
$8,000,000 of first mortgage bonds due 1903.
was
in May about
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
&
Co.
Salomon Bros. & Hutzler (jointly); White,
Co.; The First Boston Corp.; Kidder, Peabody
& Co. and Drexel & Co. (jointly); Harriman Rioley &
Co., Inc. and Union Securities Corp. (jointly); Blyth &
Co., Inc.
Weld
and
&
Minneapolis-Honeywell Regulator Co.
vote
was
announced stockholders will
increasing authorized
on
common
April 28
on
stock from 3,440,-
000 to 3,950,000 shares and the preference stock from
160,000 to 210,000 shares. Underwriter—Probably Union
Securities
Corp., New York.
if Mississippi Power & Light Co.^
March 20, E. H. Dixon, President of Middle South Utili¬
ties, Inc., announced that refunding of Mississippi Power
& Light Co.'s $6 preferred stock (no par), of which 44,476
shares
are
now
outstanding,
be
may
considered.
This issue is callable at $110 per share. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders:
Blyth & Co., Inc., and Equitable Securities Corp.
(jointly; W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.
Mobile Gas Service Corp.
■
25 shares of common
v
•
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
one-for-five basis.
Proceeds
—
For
construction
To be named later.
program.
4^
Underwriters
:
Monongahela Power Co.
Dec.
sale
11
•
it
near
was announced
company plans
the middle of 1953 of $10,000,000
bonds. Underwriters—To
bidding.
Probable
be determined
bidders:
—
.
issuance and
firsJ^jnortgage
by competitive
Stuart & Co. Inc.;
Halsey,
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¬
Corp. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner & Beane; Harriman
Rip¬
ley & Co., Inc.
curities
•
Montana
March
an
16
Power Co.
it
was
(5/5)
reported company may issue and sell
1978. Proceeds—
issue of $18,000,000 debentures due
To repay bank loans and for new construction. Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders:
was
reported company has applied to the CAB
certificate of convenience
covering service from
Detroit to Cleveland, and also in
Chicago, where the
company is now operating a mail pick-up service in sub¬
urban towns.
Underwriter—May be Cruttenden & Co.,
Chicago, 111.
for
the
Inc.;
•
determined
stock. Underwriter
was
construction
in
March 6, Maurice White, President, announced that, after
by 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,
'sfc Copeland Refrigeration
Corp.
March 18 it was
reported stockholders on March 31
will
vote on approving the
issuance and sale by the
company
-of 75,000 additional
shares of common
it
three months.
termined
{jointly). Bids—Expected to be received at
11:30 a.m.
<EDT) on May 26.
Registration—Tentatively planned for
about April 17.
21
or
$7,000,000 of first mortgage bonds due 1983. Proceeds
—For
1978. Under¬
Webber, Jackson
March
cumulative divi¬
(jointly);
Union Securities
Corp.; Equitable Securities Corp.; Leh¬
Stanley & Co. and The First
White, Weld & Co. and Paine,
'^r-Baker, Simonds
part thereof in two
a
company
of
(5/26)
company is planning to is-
announced
a
the growth of the
corporation warrants.
Gulf Power Co. (6/9)
Jan. 28 it was reported
November.)
$40,000,000 of debentures due
as
to offer
Consolidated Natural Gas Co.
mc and
issue of 3,000 shares
annually. The management
plans, these shares will be is¬
'type of securities
common stockholders last
an
preferred stock (par $100) to carry
dend rate not to exceed 6%
states that, under present
Stanley & Co.
iejredj stock to
established a
extending to
Dec. 1, 1953, to be refinanced by the issuance of new
securities. The sale of 100,000 shares of preferred stock(par $100) later this spring will mark the first step in;
the financing program. Underwriters—(1) For common
stock, probably Blyth & Co., Inc. and The First Boston4
Corp. (jointly). (2) For preferred stock, may be W. C.<
Langley & Co. (3) For bonds to be determined by com-?
petitive bidding. Probable bidders: Halsey, Stuart & Co.,
stock offer.
March 18 stockholders authorized
announced
was
credit
March 11 it
is planning issuance
company
it
15
bank
$7,000,-
Co. and Stone & Webster Securities
permission to issue and
Long Island Lighting Co.
March
of
sell
Corp.; Coffin & Burr, Inc. and Spencer
(jointly). Proceeds would be used to pay
Trask &
•
Dec.
if Mansfield Tire & Rubber Co.
V
(4/28)
writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &
$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
fer working capital.
Underwriters—To be determined
toy competitive bidding. Probable bidders:
Halsey, Stuart
Sc. Co., Inc.; Kidder,
Peabody & Co.; The First Boston
Cpip.; Merrill Lynch, Pierce, Fenner & Beane.
stock
U.
Feb. 20 it
«ell
was
and
Eastern Utilities Associates
Chicago Great Western Ry.
•Oct. 10 it
6
26 with bids
bidding. Probable bidders:
Corp.; Lehman Brothers
and Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.,
Harriman Ripley &
Co., Inc. and Smith, Barney & Co.
'(Jointly); Salomon Bros. & Hutzler.
common
loans
interest at not to exceed 4%. If competitive, bidders may
include: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Securities
asked ICC
bank
Michigan
$40,000,000 35-year
general and refunding mortgage bonds, series M, to carry
ibe determined by competitive
company
on
The First Boston
Central Power & Light Co.
March 2 it was reported
17
retire
Detroit Edison Co.
P.
Co., Inc. and Kidder, Peabody
(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co.
(jointly); Harriman Ripley
& Co., Inc.
March
Rio
Halsey, Stuart & Co. Inc.; Salo¬
Meeting—Stockholders
March
& Co.
Webster
Probable bidders:
authorizing the
after distribution by New
England Public Service Co. of
its holdings of Central Maine
Power Co. common stock.
Probable bidders: Blyth &
&
(3/31)
for the
ceeds—To
2
Stone
RR.
Feb. 9 it was announced company plans to issue an un¬
specified amount of convertible debentures, which may
first be offered for subscription by stockholders.
Pro¬
offering in
year
new
Price—$1,000 per unit. Business—Company wa3 <
organized in 1947 to design, develop and manufacture
machines and other equipment. Underwriter—
Paine, Webber, Jackson & Curtis, Boston and New York.}
Detroit Edison Co.
Central Maine Power Co.
50,000 shares of
stock.
on
Bros. & Hutzler.
mon
1,000,000
Kidder, Pea-
handled
31
1968.
November, 1949, of $6,000,000 2% convertible debentures.
Jan.
com¬
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
$110,000 each from Nov. 1, 1953, to and including May 1,
portion of the com¬
pany's financing program for 1953-1954 will involve the
common
Delta
X-ray
Denver & Rio Grande Western
Central Hudson Gas & Electric
Corp.
March 3 it was announced that some
involve
into
share for each $35 principal
Bids will be received at the office of the company,
Grande Bldg., Denver 1, Colo., up to noon (MST)
director.
•
new
be convertible
one
April 21 will
vote on approving a proposal to increase the authorized
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.
tional common stock in the ratio of one share of common
stock for each four shares of either common or
preferred
stock held. Underwriter—To be named later. Fred J.
$16,550,000
of
Feb. 24 it
Central Foundry Co.
March 16 directors voted to offer
rights to present pre¬
ferred and common stockholders to subscribe for addi¬
sale of
rate
Delaware Power & Light Co.
was announced stockholders
this
and
Underwriters
at
amount of debentures.
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 to
help pay for a $100,000,000 construction program for 1953.
market
Debentures will
stock
mon
•Atlantic Refining Co.
1953
.
■
;-
Halsey, Stuart & Co. Inc.; Smith, Barney
& Co., Inc., and Lee Higginson Corp.
(jointly); Union Securities Corp. Bids—Expected to be
opened on May 5.
Registration — Tentatively planned
for about April 2.
&
Co.,
New
Blyth
Jersey Power & Light Co.
Feb. 11 it
of about
was announced
company plans issue and sale
$5,500,000 first mortgage bonds due 1983. Un¬
derwriters—To
be
Probable
bidders:
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Salomon
Bros.
Hutzler;
Union
&
Weld & Co.
Securities
Corp.
and
White
(jointly}; The JCJrst. Boston Corp. and Kid-
Ivolume
177
Number 5206
-
.
..The Commercial and Financial Chronicle
(1361)
•
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
Permian
New York State Electric & Gas Corp.
Feb. 27 it
Of
March
(par $100).
announced
company
has
of
short-term
Underwriter—None.
Service Co.
it
3
shares to raise
bank
March
it
2
Proceeds—
struction.
Co
it
sidering authorizing
were
con¬
on
offering of a sufficient number of
shares of new common stock (par $7.50) to raise $4,000,000.
This would follow proposed stock split of
present authorized 1,639,884 shares of $15 par value into
3,279,768 shares of $7.50 par value. Proceeds would be
used
for
writers
the
an
company's construction
will
be
determined
by
$10)
Underwriters—To be determined by competi¬
Northwest.
Estimated
pipe
line bonds
and
the
1,466-
San
Juan
areas
preferred and
will
borrow
some
banks to be refinanced later in year,
common
a
Edison
bonds:
Halsey, Stuart & Co. Inc.; The First Boston Corp.
Harris, Hall & Co. (Inc.) (jointly); Blyth & Co., Inc.;
Kuhn, Loeb & Co. Probable bidders for preferred: The
$125,000,000 from
probably by offer¬
and
First Boston Corp. and
Southern
Harris, Hall & Co. (Inc.) (jointly).
reported
may sell about $5,bonds.
Proceeds—For new
Underwriters—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Kuhn, Loeb &
Co.,. Blyth & Co., Inc., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner. &
first
company
mortgage
construction.
Beane
(jointly); The First Boston Corp.; Union Secu¬
Corp.; Hemphill, Noyes & Co. and Drexel & Co.
(jointly); White, Weld & Co.; Lehman Brothers; Salo¬
rities
Bros. & Hutzler.
mon
received up to 11:30
Bids—Tentatively expected
a.m.
(EDT)
Texas Power & Light Co.
Feb. 26 it
on
to be
May 19.
(5/19)
was
reported company is planning issue and
$7,000,000 of cumulative preferred stock. Pro¬
ceeds—For additions and
improvements. Underwriter—
May be determined by competitive bidding.
Prpbable
sale
of
bidders:
Union
Securities Corp.,
Kidder, Peabddy &
Lynch, Pierce, Fenner 8c 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 am.
(EDT) on May 19.
•
Texas Utilities Co.
26
it
in
.
company plans to sell addi¬
(no par) sufficient to raise about
stock
common
vestments
'i,
(6/2)
announced
was
new
money.
subsidiaries.
Proceeds — To increase in¬
Underwriters—To be deter¬
mined
by competitive bidding. Probable bidders: The
Corp., Blyth & Co., Inc., First Southwest
Co., Rauscher, Pierce & Co., Inc. and Dallas Union Trust
Co. (jointly); Union Securities
Corp.; Lehman Brothers
and Bear, Stearns & Co.
(jointly); Kidder, Peabody &
First
Boston
Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly);
Goldman, Sachs & Co. and Harriman Ripley & Co., Inc.
(jointly). Bids — Tentatively scheduled to be received
June 2.
on
ic Toledo Edison Co.
March 20 it
21
was
announced stockholders will vote
increasing the authorized
on
common
stock
April
from 5,-
000,000 to 7,500,000 shares and amend the articles of in¬
corporation so as to provide that the limit on the amount
of unsecured indebtedness that the
company may
without consent of majority of the
preferred
create,
stockhold¬
ers
shall
be
20%
(instead of 10%) of the aggregate ot
company's secured indebtedness and capital and surplus.
Charles E. Ide, President, stated that the
management
has no present plans to issue new
common shares.
Union Wire
March 6 it
was
Rope Corp.
announced
V.
that, following proposed two-
for-one split-up of the common stock to be
voted upon
March 24, company plans to sell
100,000 additional shares
of common stock, part to stockholders and
part privately.
York-
&
Co., Inc;> (New
United Gas Corp.
June
stockholders
l-for-15 basis and
$30,000,000 of
Proceeds—For 1953 construction program.
Underwriters—For stock, none. For
debentures, to be
determined by competitive
bidding. Probable bidders!
Halsey, Stuart & Co. Inc.; Morgan Stanley 8c Co., White,
on
a
debentures.
Weld
&
Co.
and
Equitable
Securities
The First Boston
3
it
was reported
company may issue and sell in
June, 1953, $10,000,000 of first mortgage bonds and be¬
tween $14,000,000 and $18,000,000 of debentures. If com¬
petitive, bidders may include: Halsey, Stuart & Co. Inc.;
Union Securities Corp. and Lehman
Brothers (jointly);
Blyth 8c Co., Inc., Smith, Barney & Co. and White, Weld
& Co. (jointly); W. C.
Langley & Co. and The First
Boston Corp. (jointly).
May be
determined
bidders:
Stone
will
be
used
bonds:
for
Halsey,
new
an
additional
or
construction.
Stuart
&
Co.
$30,-
bank loans.
Probable
Inc.;
Southwestern Gas & Electric Co.
Feb.
issue
25
it
and
was
sell
reported company later this year may
shares of cumulative preferred
50j000
(jointly);
Washington Water Power Co.
Dec.
Probable
was
for
Corp.
Corp., Harriman Ripley & Co., Inc. and
Goldman, Sachs & Co. (jointly).
writers—
it
Kuhn,
Loeb & Co.; The First Boston Corp., Blyth &
Co., Inc.
and Kidder, Peabody & Co. (jointly).
Any stock financ¬
ing may be via stockholders.
„
was
ably in June. This is in addition to
bidders
Proceeds—For construction
'
1 j; c
reported company may issue and'; Sell ia
approximately $20,000,000 of common stock'to com¬
Feb. 11 it
March
27
Proceeds
program. Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
was
reported that approximately $30,000,000
of first mortgage bonds will be publicly
offered, prob¬
Feb.
was
Inc.; Kuhn, Loeb & Co.; Kidder, Peabody Co.; The Firit
Boston Corp.; Equitable Securities Corp.
it
of
West Texas Utilities Co.
Natural Gas Co.
000,000 to be raised through sale of stock
on.
26
»i'-<
Co.
—For 1953 construction program.
Underwriters—May be
determined by competitive bidding. Probable bidders for
that
shares.
like amount later
California
President, stated that
is considering selling $25,000,000 of first mort¬
gage bonds and $15,000,000 of preferred stock. Proceeds
reported company plans to issue and sell
in June about $12,500,000 first mortgage bonds due 1983
and
Halsey, Stuart
(5/19)
Underwriter—Probably P. W. Brooks
Examiner
company
Pennsylvania Electric Co.
Feb. 11 it
Natural Gas Co.
announced
March 11, William C. Mullendore,
ing of bonds and additional common stock. Probable
bidders for bonds: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; White, Weld & Co.; Lehman Brothers and
Union Securities Corp. (jointly).
Stock would be of¬
fered to stockholders, without underwriting.
American
Telephone & Telegraph" Co., parent, owns 91.25% ol
Pacific
Texas Power & Light Co.
T
a
Southern
common
Pacific Telephone & Telegraph Co.
17 Mark R. Sullivan, President, announced
1953
a
was
by competitive bidding. Probable bidders:
Halsey, Stuart & Co., Inc.; Morgan Stanley & Co.
Underwriters—White, Weld & Co. and Kidder,
Peabody & Co., both of New York, and Dominion Secu¬
rities Corp. Ltd., Toronto, Canada.
in
filed
it
termined
stocks.
company
19
if Southern Bell Telephone & Telegraph Co. (5/5)
March 23, F. J. Turner, President, revealed that the com¬
pany plans to issue and sell $30,000,000 of 24-year de¬
bentures to mature May 1, 1977. Proceeds—For additions
and improvements to property. Underwriter—To be de¬
third
a
overall
Dec.
ment trust certificates.
Probable bidders:
& Co. Inc.; Salomon Bros. &
..
.
the
mortgage
Proceeds—To increase cap¬
decision, subject to Commission review, author¬
izing the company to construct 335 miles of pipeline
in Alabama, Georgia and Florida at an estimated cost
of $8,141,518.
1
in
capital cosl
project is $186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
of
Pacific
.
mon
Basin in New Maxico and Colorado to market
the
Feb.
filed
Pacific Northwest Pipeline Corp.
Jan. 29 company received FPC permission to file
substitute application proposing to construct a
from
share.
South Georgia Natural Gas Co.
19 it was announced a FPC Presiding
N. M.
extending
per
Feb.
to register
with the SEC an issue of stock, which will be offered
nationally. Office—5003 Central Avenue, N. E., Albu¬
line
Price—$20
a
FPC Presiding Examiner
decision, subject to Commission review, author¬
izing company to construct approximately 160 miles of
pipeline at an estimated cost of $5,945,000. Securities
may be sold privately through competitive sale.
competitive
Ormond Corp., Albuquerque, N. M.
10 it was announced company plans
transmission
24 for 25,000 additional shares (par
the basis of one new share for each four shares
South Carolina
March
mile
Finance
ital and surplus.
bidding.
Probable bidders: Stone & Webster Securities Corp.;
Shields & Co.; Lehman Brothers and Harriman Ripley
& Co.;;Int. (jointly). Offering—Expected in June.
querque,
on
held.
Under¬
program.
program.
Texas-New Mexico Ry. (4/15)
:
Bids will be received
by the company up to noon (EST)
on April 15 for the
purchase from it of $960,000 equip¬
$15,000,000 of
before April
or
of the
stock and for any additional shares
not sub¬
scribed for by other stockholders or
their assignees. Pro¬
ceeds would be used for
expansion
Feb.
if Second National Bank of Philadelphia (4/14)
March 25 it was announced company plans to offer to
its stockholders of record April 14 the right to subscribe
Co.
directors
reported
new
Co., Los Angeles, Calif.
Appleby, President, announced plans for
offering an issue of non-convertible preferred stock (no
par). Proceeds — For working capital and expansion.
Underwriter—The First Boston Corp.
Canada. Underwriter—Morgan Stanley & Co., New York.
Gas
company will issue and
in the ratio of 75% and
Co. and Merrill
company plans issuance and
$50,000,000 of first refunding mortgage
Proceeds—To repay bank loans and for new con¬
Seaboard
000,000 of 5% debentures and 1,400,000 shares of common
stock at $10 per share publicly in the United States and
announced that the
that
stock
25%, respectively.
It is anticipated that Peoples Gas
Light & Coke Co. will subscribe for about
For
of
Feb. 9, Paul A.
Natural
about $4,000,000. Proceeds—To
for new construction. Under¬
Stanley & Co. and Drexel & Co. (jointly); The First
Corp.
gan
company
000,000 of 41/2% first mortgage pipeline bonds to insur¬
ance companies and other institutional investors and $9,-
was
and
announced
was
June
the Pacific Northwest by the issuance and sale of $66,-
Oklahoma
issue and
to
be
Boston
Feb. 24 it
common
determined
was
plans to
finance its proposed 1,300-mile pipeline from Canada to
reported that this
was
plans
tive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
ic Northwest Natural Gas Co.
it
in
sale
(jointly).
23
Hampshire
company
Public Service Electric & Gas Co.
by competitive bidding. Prob¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.:
&
announced
was
bonds and
tional
bonds.
March
Co., Inc., Ne\i
tions and improvements.
able bidders:
Peabody
sell
01
company may issue and sell
preferred stock (par $100). Under¬
determined
by competitive bidding.
Probable bidders:
Glore, Forgan & Co.; Smith, Barney
& Co.; Kuhn, Loeb & Co.; Harriman
Ripley & Co., Inc.
and Central Republic Co. (Inc.).
Proceeds — For addi¬
writers—To be determined
Kidder,
be
writers—To
Feb. 25
and
loans
40,000 shares of
loans and for new construction.
Offering—Expected in May.
Corp.
May
Public Service Co. of Oklahoma
to stockholders, the company plans to issue
$40,000,000 of new debentures. Proceeds—To re¬
pay bank loans and for construction program.
Under¬
Boston
in
by competitive bidding
bonds, Halsey, Stuart & Co. Inc.;
(jointly);
Kidder, Peabody & Co.; White, Weld & Co. For stock,
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly);
Harriman Ripley & Co. Inc.
stock
First
of New
announced
was
'*
.
„
w
Texas Illinois Natural Gas
Pipeline Co.
Feb. 24 it
000,000
Probable bidders:
and sell
The
plans
company
The First Boston Corp. and Coffin & Burr, Inc.
Feb. 27, H. H. Siert, Treasurer, announced that following
the proposed offering in May of 548,100 shares of com¬
mon
Corp. (jointly)..
Hutzler.
informed the
share for each five shares held.
new
repay
to file
Indiana, Inc.
announced
was
writers—To
offering of 548,100 additional shares of common
(par $10) to its common stockholders on the basit
one
To
& Webster Securities
Feb.
repay
an
stock
Kidder, Peabody & Co. (jointly); W. C. Langley & Co.; Harriman Ripley & Co.
Inc.; Merrill Lynch,
Pierce, Fenner & Beane, and Union Securities
Corp*
(jointly); Lehman Brothers; Blyth & Co. Inc., and Stone
preferred stock (par $25), subject to approval of an in¬
in authorized capitalization.
Proceeds—For con¬
Nebraska State Railway Commission that it proposes to
make
it
2
common
Northern Natural Gas Co.
was
company plans
approximately $5,000,000 of bonds in May or June,
1953, and in the latter part of 1953 to issue sufficient
(in addition to 80,000 shares of cumulative
stock recently offered). Proceeds—For new
it
Service Co. of
Public
construction.
27
determined
White, Weld
common
announced that
was
sell
future
Feb.
by
& Co. and
June to issue and sell 600,000 shares of new cumulative
Nov.
Northern Indiana Public Service Co.
preferred
owned
now
struction program.
Underwriter—Blyth &
York and San Francisco.
Co.
Jan. 7 it wag announced that company plans to issue and
sell an additional $23,000,000 of new securities in the
near
is
crease
Bids—Tentatively
scheduled to be received on June 23. Stock Offering—
Company also plans to issue and sell to American Tele¬
phone & Telegraph Co., its parent, 700,000 additional
stock
it
Public
Underwriters—To be de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Mer¬
rill Lynch, Pierce, Fenner & Beane and Glore, ForgaD
common
51%
a registration statement
covering
$30,000,000 of bonds and $15,000,000 of preferred stock.
Underwriters—Previous bond financing was handled by
Drexel & Co. and Morgan
Stanley & Co., while Morgan
Stanley & Co/handled last preferred stock offering.
termined
of
this
shortly with the SEC
and for construction program.
shares
of
(par $100). Underwriters — May be
by competitive bidding. Probable bidders:
67%
March 24
mortgage bonds, series G. Proceeds—To repay bank loans
&
stock
if Philadelphia Electric Co.
(6/23)
(jointly); Kuhn, Loeb
the
company,
Northern Natural Gas Co.
Feb. 26 company applied to New York P. S. Commission
for permission to issue and sell $35,000,000 of refunding
Co.
stock; Stone & Webster Secu¬
Corp.; and Glore, Forgan & Co., both of New York
rities
riman Ripley & Co., Inc.
&
Pipeline Co., Chicago, III.
for convertible notes and
Drexel & Co. (jointly); Kidder, Peabody & Co. and Salo¬
mon Bros. & Hutzler (jointly); Lehman Brothers; Har-
Telephone Co.
Basin
Feb. 4 company filed an amended
application with FPC
for authority to construct a 163-mile
pipeline system at
an estimated cost of
$40,269,000. Probable underwriteri
reported that company may, later in 1953,
issue and sell $20,000,000 first mortgage bonds (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: Halsey, Stuart & Co. Inc.; The First Boston Corp. and Glore,
Forgan & Co. (jointly); Blyth & Co., Inc. and Smith,
Barney & Co. (jointly); Hemphill, Noyes & Co. ana
was
Hew York
stock
announced company
was
has received Penn¬
sylvania P. U. Commission approval to issue and sell
privately $25,000,000 1st mortgage 3%% bonds, due 1983.
June.
or
Pennsylvania Power & Light Co.
March 24 it
53
2
it
and sale of
was
reported that company plans issuance
100,000 shares of new preferred stock. Under¬
&
by competitive bidding.
Webster Securities Corp.;
Harriman Ripley & Co., Inc.; Union Securities
Corp.
Western Light & Telephone Co., Inc.
18 it was announced that company proposes to
increase the authorized preferred stock (par $25) from
March
250,000 shares to 400,000 shares and the common stocks
to 700,000 from 500,000 shares. The additional shares will
be issued only as funds are
Hall
&
needed. Underwriter—Harris*
Co., Inc., Chicago, 111.
'
54
(1362)
The Commercial and, Financial
Chronicle...
Thursday, March 26, 19
,ii
.
Continued from page 5
talist with
brief
Inflation
textile
The
industry. So the problem
wartime
expansion
took
right down, of course, to the place through a five-fold increase
goes
in
man
the street.
The
that
entire
population
have
we
in Federal
fifty-five
a
realized
1920
dollar.
in
1940's
the
not
of
cent
that
there
dollar's
until
in
was
and
chart,
and
it
was
another
war
main
of
cause
Prices
back
has
war
to
the
inflation
War.
peak
all
at
the
time
of
the
1812, after which there
and
deep decline.
the
time
prices
It
the
of
you
was a
was
War
more
less
or
big post-Korea outbreak
inflation spurt in most countries:
a 40% rise between 1950
and 1951
of
long
in
a
France and
Sweden; Italy and
Switzerland had the smallest rise
that
a
—
—abroad
home
at
for
the
benefit
not
I
think
have
we
Start of this in the
of
the
American
seen
plane
by
seems
to
me
part of the same thing. I think it
will stop short of a
shooting war.
I think that the new
rulers have
too much sense not to
realize, just
as Stalin
did, that they haven't a
chance of winning a
shooting war.
Of
course, we are stronger
than we were then.
Also, from
to
seems
that
me
factor is the
now
point of view, it
our
an
inflationary
Eisenhower pol¬
new
icy of getting
away from contain¬
ment and into a
greater aggres¬
siveness. In this
shifting of bal¬
from
the
Kremlin
to
Eisen¬
hower, there will probably be a
approximately 15%. Since the maintenance or
stepping up of our
beginning of
1952,
inflationary
anywhere near where
they had been during the War of
armament, which is what
pressures have subsided to
1812.
The War of 1812 peak was
only surpassed by the period fol¬
lowing World War I, which again,
after a long
intervening period of
a
great
we
are
concerned
with here tonight in
abroad, and prices have
talking about inflation and its ef¬
been gradually
falling throughout fect upon the
budget.
This, I
nearly
all
countries.
In
14 would
like to say, I consider as
time, was not surpassed until after months, since December, 1951, just strictly a short-term
proposition,
to give you a
World War II, in 1946.
bird's-eye view of the because it will
In other
bring a decision.
world commodity
words, inflation distinctly is not a
situation, wheat, The
one-way street!
it
as
is,
This chart, rough
give us the proper
perspective to recognize the error
in assuming that this
inflationary
may
rise of the last
10 years, of which
has
everyone
become
scious, is something
it
represents a
way trend.
It may be
per
se
not; but at least
dual
we
possibilities
so
new and
new
or
can
from
con¬
that
one¬
see
Again,
from
of
the
June,
time
1950,
commodity prices
of
from
with 1926
being 100, to a peak of
January, 1951, then fell in
the following 12 months to
183,
and now, from
January, 1952, to
February, 1953, a further drop to
210 in
161.
In
other
words,
within
two
the
prices,
all
by
to
that
1952, I would remind
they were chiefly the
following.
tures
The jrising expendi¬
the
government,
of
by
course, which seeped down to in¬
dividuals
made
and
possible
business firms
through
huge
you
in¬
that, naturally, had the effect of
a
greatly increased money sup¬
ply
and
purchasing
power
all
around:
partly
used,
partly
Rides the
62%
price
from
from
of
the
on
inflationary
a
element
if
lulls
The
that
have
of
the
holocaustic
there, which
until 1923,
know,
mark
occurred
lasted, as
the value
rallied
the
first
World
War, prices fell
between 1916 and
1917;
the long
and
in
inflationary rise
France, in the 1930's, there was
20 to 30%
of
the
reversal in
the value
franc:
that is, a fall in
in other words, a coun¬
ter action
lasting for a year or
more.
But now there are
espe¬
prices,
must
in
trols.
In
minor
controls,
it
Director
new
of
the
$10,000,000,000 deficit—the differ¬
ence, roughly, between
$69,000,000,000
and
$79,000,000,000
—
it
seems
cut down in
a
as
of
much
so
far
under
difficult
very
to
hurry, particularly
it
is
made
up
of
military defenses, which many of
us
believe that Eisenhower will
country
For
and
in
other
countries.
instance, in this country the
great
creation
of
deposit
money
which I have mentioned.
So here
we
are
background as
today, showing
not
a
on
to
some
of
the
we
are
inflation
is
one-way street.
Our
at
us
ficult
not
to
reduce
a
I
don't
think
controls
500,000,000 for veterans,
and
the
of interest on the
public
In connection with
the bud¬
get situation there is also the def¬
icit situation, and another
element
of
difficulty there is the repeal
dates of various so-called
tempo¬
tax increases.
individual income
Inflationary
the
this
excess
point summarize
the inflation factors- and
the de¬
taxes
down
fect
of
profits
Not
not
geared
j
to
armamen
indirectly, to"
or
extent.
Mr.
on
This
is
not
Stalin, but briefly
that
say
after
otherwise
needed.
weakening.
So
next
are
I
do
are
the
sho
Kremlin.
controlling
in
infla¬
No]'administration
democratic"1 country want¬
any
ern
age
stand
can
depression
and
Hoover still is
litical
sacrosanctity
ployment which is
on
the
that he could make mis¬
so
and
the
pouncil of
Eco¬
revised
and
improved direction, of course,
but still it gives
lip service to the
"full employment
^slogan," which
it is political
to oppose,
for who can oppo$e full
employ¬
ment?
It's a wonderful
dynajmite
of'labor
in
Wash¬
All of which continue the
bedrock
stimuli
and
to
is, second,
inflation.
In
England with the conservative
Tory government back since Oc¬
Washing-
element of
deflation; the Republican economy
drive
in
powef\
<9
There
balancing, which,
em¬
in
from Moscow to
po¬
insisted
a
remain
successors can't make
mis-i
without losing the
people's
following and entailing dissension
within the Palace
guard. Certain¬
ly there should be a
shifting of
takes
po¬
now
Advisers—Under
still
a
full
Eisenhower
continuing the
nomic
of
Mr.
even
happen. Stalin was the
uniquq
leader who had the
backing of
the
as
have
Stalin, and
can
power
major
Reflation.
We
litical
Even
a
exploited
epithet.
law.
for
with
last
ton'
ing to be re-elected.in this mod¬
we
even
until
takes
really
ago,
tion;
people
is
years
week, many people
thought that it was a phony,
Tito is just one indication
of what
| |
lqn|-term
Two
surprised by the Tito defec¬
up
should be
of| £old practical
i:
were
Sixth, and possibly the most im¬
But his
of all, in njy
opinion, is
motivation
no¬
certainly
had
what
•
flv<
or
and
anc
the
we
call built-in, and still
available to fan the flames of an
move;if it
it
very goo<:
created by the com¬
banking system. A lot of
purchasing power is still
inflationary
but
ting
was
mercial
year
know
chance of there
being some splitiin the seams, either in the
Satellites or between China
the built-in in¬
flationary media, fistf mentioned,
the
$70,000,000,000 of available
d
purchasing power,
inflated
knows;
Whether it'
next
element of potential
weaknesi
in the so-called
Soviet Empire
And there
certainly is a
n o n-s a v e
which
or
don't
an
>
Fifth, there
I
body
thing that thef; lifting of con¬
trols is a very
important infla¬
tionary element, bJuC it is slightly
inflationary.
month
years,
not
is
toward
not
of
an
eventual
an
budget
I mentioned,
immediate future, a
the
curtailment of
as
inflationary
monor
tary policies which is and will be
immediate, and which is a matter
of intent
all
the
saddle
today
mitted
policy
or
rather than
spelling out
People in the
measures.
to
definitely
are
restrictive
a
com¬
monetary
return to sound credit
or a
monetary policy.
Certainly,
we
shall be moving in that direction.
Straws in the Wind
There
is,
third,
versal of inflation
a
,
.
general 're¬
a
psychology and
general communal, what I would 1
climate
of
deflation
with
call
growing faith, which we've seen
already, in the outlook for the
dollar, and which has been ac¬
tober, 1951, even Mr. ChurchilL
companied already as we pointed
hasn't gone very 4tts*back in his
out, by persistently falling prices.
deflating and restrictive policies, I don't know whether
or
only the
and also
tax,
tax, and other
is
directly
would
taken
are
off, unfortunately, ^unless they
hurry, $4,- ington.
amount
to
Republican period of possible
stepping-iip th
get lifted Cold War
by these diversionar
until they are no
flopger needed. shows, is
over, I believe that ther
The current
lifting, of controls, certainly is a very
strong chanc
outside of a few
[ isolated items that the effect of the
passing o
like
cigarettes, as? being accom¬ Stalin and his
unique position wil
panied by a general .price slide.
be their
power
in
&
plant
extent
a
so
rary
Immediate
Factors
Let
but
debt.
where
that
cut,
ha\
you
Electric
great
It's q
well'd
do' not
slogan,
quickly as has but all that goes
jwith it is dis¬
been said.
In that
budget, also, tinctly
inflationary.
Organized
are
a
number
of
untouchable labor has its
privilege, and Mr.
cially strong, permanent infla¬
items, such-as $7,500,000,000 for Durkin is still
powerful or main¬
tionary pressures built in, in this
foreign aid, which seems to be dif¬ tains a
or
Cincinnati,
a
greater
talk
a
because
politics, which I believe
Budget—is the evident difficulty
of
balancing the budget. In the
first place, there is the
Truman
budget for 1953 and 1954, with a
which
tivity
either
Administration,
the
realize
we
in
con¬
only
as
Thus, in most vicinitt
the
country, most industrial a
the
is
to
city
a
planes.
committed.
influence;
even
voted
which
lifting of
as
General
your
inflationary line, I
view-this
my
inflationary factor tionary factor.
have—and
the
as
mention
is
of
portant
second
we
Taft
the
on
very
the
ortho¬
Germany, in 1920
Fourth
the
over
Difficulties in Balancing the
Budget
not
to ^some
definitely re-started.
short-term.
official
to
armament; but is is
zinc.
30 to 40%
un¬
Escalator
30%,
by 20%.
In
this country's wartime
inflation in
used, and partly still available.
Everybody
zinc
reversion
midst
the
was
in the public debt,
mostly
planted in the commercial banks;
creases
fallen
sugar
accompanied,
a
Even in
the
of
in
1941
has
long truce is a short-term
proposition, I think, in its effect
there
inflation
a
of
and
are
the
on
monetary policy.
before.
in
of 20%.
you
dollars
market
others
caused,
years, wholesale commodity prices
have fallen from 210 to
161, a drop
-Summarizing the factors caus¬
ing our own inflationary situation
41%,
black
inflationary
pre-
152,
8V2%,
The
in
market,
cotton 24%,
rubber
So
wholesale
rose
expressed
New
York
has been a
start, cer¬ more and more every
day since
tainly a good start, on the defla¬ Jan.
20, or possibly since Novem¬
tionary swing, already. But such ber, when Mr.
Joseph Dodge came
the
per¬
spective.
Korea
as
dox
it may
this
extent
health,
Senator
even
Even in
of
public
the
armament cutdown.
versified
various
kinds, toward
things as broadened social
security benefits, aid to education,
a
industrial activity in the eve')
an
vious.
such
shooting down
Wednesday, which
ance
ments
the
Czechs, and of the British plane
on
there are the new Ad¬
ministration expansionist commit¬
show
of
in
of
Third,
a
of
got
,' *"■
population, to solidify them
home.
are
Commitments, Controls, Media
possibility
of
A
wasn't until
Civil
but
not
were
similar recent pattern has ex¬
isted in European countries. There
see,
War
savings,
which
absorption of government debt.
half-cen¬
As
the
at
printing press type
purchasing power, which was
created by the banking
system's
have charted is
we
needs
of
Revolutionary
reached
Civil
the first
that
in
manufactured
been
tury peaks during the War of 1812
and
ex¬
increase
security
$70,000,000,000,
going
that
see
the way back to the
War.
four-fold
a
time; an
enormous increase in
deposits or
money and liquid assets for the
public's spending amounting to
real
this
we
the
credit, which
is the basis of bank
course
civilian
of post-World War I.
By
Reserve
government
of
long rise
a
value,
1946
terms
that prices re-attained their level
1800,
a
going to try to can¬ ment for a
prophecy one way
cel in part. It
certainly adds, how¬ another; you can't
gloss over t
ever, to
the difficulty of doing factors
on
either
side
of
tl
anything in the hear future in
fence.) First, on the deflation^
cutting down expenses.
side, there is the enormous
That is played
up as the
case.
diversionary show
multiple growth shooting war but a continual
holdings by
have a seventy-five cent the banks, with relatively negli¬
Between the
1920's and gible new financing extended for
we
the
is
Federal
1939; what is pansion;
dollar, in terms of
not
of
knows
debt;
Congress
defensive strategy against the
ag¬
gressor, the old German idea, the
Hitler idea, and the Kaiser
idea of
fighting to defend the Fatherland.
I think there is a real
Deflation Ahead Now?
01
atomic bomb in his
an
in
abolishing
Politics
and
interventionism.
realize
faith
Resuscitators
And last, to implement the
po¬
litical ends, are what I call infla¬
the
in
general
the
dollar.
longer, all
any
cracks
about
the
the
we
fully
rekindling of
There
aren't
public
wise¬
dollar
would
call
and
more
ting
on
of the population
get¬
the escalator in one way
going to
temporary
-nothing, interest rates are rising,
nature which will
automatically
tionary
resuscitating
weapons,
now
flation factors from here
sales of E bonds and
savings bonds
ofy and expire, and many of us including "in the
closet," which can and will have
then try to get to some
increased; those things are
conclu¬ myself think they ought to
expire. be called in at the first sign of
sions. In the first
straws in the wind.
place, we'll go We're now talking about the ef¬ depression
trouble, such as Public
which
It
was
accentuated
by what I
cost-plus,
or
price
push, factors, as the escalator in¬
crease
arrangements, with more
or
another.
As
the
list
seem
to
of
me
the
elements
to be most im¬
portant
in
ping
step¬
of the Cold War, arising
you know, it was
making for inflation,
seriously proposed by many, in¬ from this point on. First, and fore¬
cluding
thb
eminent
Professor most, the possible imminent
Slichter, of Harvard,.to put
savings bond holders,
E
bond
holders, on the escalator by giv¬
ing them a sliding scale of repay¬
ment according to the
value—ap¬
preciated or depreciated — of the
dollar. This would have added
on
another
50,000,000 people, insofar
weren't
duplicated
in
other
categories, onto the escala¬
as
tor.
had
on
they
But
a
without that, we've
great part of the population
the
even
escalator
in
one
way
or
another; and on this cost-push
arrangement, you have the agri¬
cultural
price
supports,
which
was again a kind of
escalator in
keeping
one
politically powerful
group protected against price rises
in other sectors of the
economy.
up
from the Malenkov deed for
put¬
ting on a show abroad,
taking
Stalin's
fying
home.
unique
mantle
in
on
solidi¬
his
domestic following at
Anyone visiting Russia, as
you've been told I have, would be
impressed by not only the propa¬
ganda line to the neutral coun¬
tries, but what is hammered into
the
man
the street by the Rus-
on
sion Government
Stalin, who was in
er
position, of
kov—and
—
a
course
which
even
much
the
under
strong¬
then Malen¬
on
is
course, in
the ax on
to be at
with
Works
great
difficulty,
of
getting Congress to
use
expenses.
I
small informal
a
the
Senator
think,
more
Byrd
to
And,
so-called
the deficit.
There
do
even
happened
luncheon
who
wants, I
than any other except
this, the other day.
for
a Republican Sen¬
Republican Senate is
in the
saddle, it seems to be ter¬
ribly difficult politically to with¬
ator when
a
nite
and
other
outlets
of
defi¬
financing. This is pretty well
presaged
by
the
Eisenhower to his
eral
advisers,
closeness
so-called
theTarge
of
lib¬
number
from the Committee for Economic
Development, and others such,
get
started.
Of
course,
weapons
enough to make
are
up
whether
powerful
for the gap in
the rearmament cut-off is another
matter.
There are also such de¬
short
vices
a
of
an
board cut,
President
arbitrary
which
hurry,
across-the-
at
Eisenhower,
this
point
possibly
wisely, doesn't want. There is also
the
$80,000,000,000
the
been
the
ag¬
thought
'of
what
possible gold devaluation,
which wouldn't be called in now
but
as
be
can
over-p roduction tendencies
many
lines, if not
used, and/or a free
and open gold and silver market.
peace
capacity
in
ir^
lines; al¬
Our
time;
•
Of
is manifested
by the chart
where the only time in the
past
when there have been
high price
peaks and depreciation of the dol¬
lar is when they were induced
by
time conditions.
war
Fifth, there is also a decline in
exports which has become acceler¬
ated
since
which
the
may
first
become
particularly if
our
has
most
present in this country.
ways
enormous
Dewey, whose whole
thinking is not to l^t a deflation
those
Fourth, very important on the
deflationary side, is the nation's
productive
capacity,
with
the
as
Governor
stand the political
pressure groups
and get the hatchet out in
in
man
a
we
of
the
year,
accentuated,
do cut down
on
subsidies abroad.
called
Deflationary Factors Facing Us
"fiscal
hangover":
Sixth, I would mention growing
believes, namely the that is appropriation still
unex¬
Now what do W.e see on
the public disapproval of government
They really pended and due to be
spent in the other
side of. the medal?
believe, because they've been told next few
Who knows but
(As I subsidies.
street really
fear of the
to
believe,
gressors.
foreigner.
that
years.
we
are
Every American landing
on as a
capi¬
in Moscow is looked
past,
This
has
Budget Director Dodge; and
what
been
of as sacrosanct in the
but President
Eisenhower,
see "
it,
this
treat this
is
the- only
subject,
way
because
the wise, you're just making
to
other¬
an argu-
the 50 million pound butter
buy¬
ing program
nomic
price
at
a
may
grossly
even
be
uneco¬
liqui-
olume 177
Number 5206
The Commercial and Financial Chronicle
...
(1583)
ted, and this kind of thing outwed?
.
$
Net
The
*
ctors
I
until
these
some
two
con-
of
sets
both sides of the
fence,
out the
them; pointing
nflicting elements is the only
y I can honestly handle a fore¬
st of this kind. It seems to me
s
see
it
the
over
reasonably
near-
the deflationary factors
Tm,
are
redominant, and may very well
tail mild price declines with a
if
1950, 64%;
he
monetary stability.
It's
angerous to say never, but I don't
will
we
29,
ell
another
post-
anything like that because
or
have
te
have
too
cushions
many
as
too much political motiva-
as
Second, the very long-term, disinguished from the short-term
ounter
trend, will
ection
of
a
be
in
the
man
90%;
and
them
up to
the
present time, he would have kept
It shows the importance of
even.
the period that is taken—and who
knows what the situation will be
next year or
the year after?
Abroad, of
money
has
or
In
worst.
I
secured
would
say
he
long
and
deflation
will
measures
of
run,
con¬
stopping
greater
ever
this
to
the
of
by
lead
degree,
hand
one
tionary
the
short-term
movement,
and
defla¬
the
on
long-term,
The
,
Investor and
against
stocks
on
ih?
Is
a
Are
As I've said,
there has been
small
stocks
common
should
held
only because
tion
hedge
vestor
inflation
of
as
take
Astute
living in
the
observers
current
tempt
of
The
in¬
account
the
of
The
not-too-distant
a
be to undertake
infla¬ of long-term
their
into
behavior
see
something in the
financing.
relentless
settling
way
Distinction
and
In
restrictive
view
I
Short
Victory
yield basis,
the
Long-Term Trends
line
eriod
recently
Between
with
policy,
the
of
the
and
also
situation
war
in
the
—
must
that
mean
grace
have
psychological decline in
the price of stocks; but such mar¬
ket
a
escapable and definite conclusions
are
that there has been no his¬
psychological, which
torical
as
reaction
costly to
would
be
purely
be
can
just
pocketbook,
your
no
mind.
around
the
It
to
has
make
June
several
least
at
or
15
until
months
time
rolls
preparations for
refinancing
the
gilt-edge
porate market is keeping the pace.
And
modity prices on the other. Sec¬
ondly, there has been no close
stock
necessary
correlation
liberal
one
in
hand, and
this
com¬
country
be¬
tween the general
price level and
the price of securities.
I would
remind you what
happened, for
example, during the stock market
boom of
1926-1929, when the stock
tripled
averages
prices
and
stable
were
commodity
declined.
or
In
1946-1948,
conversely, there was
large, very sharp rise in com¬
modity prices here, and at the
a
time
same
there
bear
market—a
yeu
know,
declined
where
from
Sometimes
gether;
was
slightly
a
down market,
the
190
to
averages
160
they have
as
or
moved
so.
to¬
often, they have not.
Europe the citizens' actual use
In
of
more
the
equity
themselves
share
from
inflation have been
ful
than
it
to
the
has
defend
ravages
more
here,
of
success¬
but
reason is.
Objec¬
appraisal shows that current
prices are justified by cri¬
teria of value, such as the very
dividend
6M>%
all
on
yields which
listed
dividend
are
pay¬
ing issues; and
even
rise in
rates, there is still
a
money
sizable
stocks
if you have
differential
and
bonds
a
between
in
favor
of
stocks.
it
has
only
been
a
even
partial
big
naturally
makes
it
for underwriters to step
of market¬
process
investment bankers
a
balance
enormous
strength
can
sheet
has
generally, make Ameri¬
stocks
common
good
a
value
is
week's
ticular
issues
new
rather
out
move
A
Securities and
to
week
only 29%; in other words, the
stock buyer only achieved a 29%
recovery of his loss through the
depreciation
Switzerland,
got
up
so
.
f
his
of
currency;
54%; only Sweden
to 100%; Italy, 42%; and
on.
*
At
Home
and
Abroad
Stock Buyer's
Offset
vs. Dollar
Depreciation
t
Un'ted States
1938 to 1949
30%
as a
prices
were
kind of bonus.
Telephone
&
the
they are in
there might be more head¬
much lower—4
then
aches
in
worry
should
Expanding
The
does
rising
not
well,
emphasis
on
to
public
of
much
was
the very long pull on value with¬
out
taking into consideration the
inflation hedge
which,
as
I
say,
I
1938 to 1950„„.
64%
believe
bonus,
and
1938 to 1951__
90%
doesn't have to be taken into
con¬
is
an
1938 to 1952
99%
sideration in
extra
our
decisions whether
to
'■
In
the United States, this chart
shows the percentage in the rise
of
the
gained
cost
or
common
of
saved
cause
we
won't
have
a
drastic
living that was long-term deflation, I believe that
by the buyer of over the very long pull well se¬
stock
1949, 1951,
buy or not buy common stock.
Hence, because of value and be¬
between 1938, and
and 1952. The reason
I've shown these four
years is to
illustrate the point that it
depends
lected
stocks
will
right.
In the
British
see
that
by 30%
equities
after Mr.
work
out
all
market, we
which declined
Churchill and
preferred
to
to
into
Currently
a
the
issue
at
1920's
competitive
from
the
sale
$16,000,000 first mortgage bonds, together
with $6,000,000 received from the
sale
during February and March,
1953,
of
additional
shares
of
Georgia Power common stock to
the
parent
organization,
the
Co., will be used to
repay
$3,000,000
of
temporary
bank loans and for construction,
additions
and
improvements to
the utility plant.
Southern
The new preferred stock is
deemable at $106.50 per share
prior
or
to
April
SECURITY
1963, and
after
share
per
and
on
utilities
after
or
April
DIVIDEND
1,
1963.
NOTICES
LONG ISLAND LIGHTING COMPANY
Notice of
Quarterly
Dividend
really
were
The
Latest candidate for the
new
is¬
Board
of Directors
has
declared
quarterly dividend of 2cents
per
market
is
Philadelphia
Elec¬
tric Co. which plans to raise some
via
$45,000,000
bonds
and
NOTICES
pre-
This dividend will not he distributed to
holders of the old Preferred and Common
Stocks of the Company (or Certificates of
Deposit for said Stocks)
such
shares have
been
exchanged for the
NATURAL
to
holders of
new
surrendered and
Common Stock.
VINCENT T. MILES
CONSOLIDATED
ever
or
the old Preferred Stocks of Queens Bor¬
ough Gas and Electric Company and Nas¬
sau
& Suffolk Lighting
Company ontil
Treasurer
March 25, 1953
GAS
COMPANY
that
30 Rockefeller Plaza
to
New York 20, N.
par¬
Y.
Dividend No. 21
'the
board of directors
has this day declared a regular
quarterly cash dividend of SixtyTwo and One-Half Cents (62
per
the
tyi t)
on the capital stock of
Company, payable on May
share
15,
1953
record
sold
stockholders
to
the
at
close
of
business
of
Southern
California
April 15, 1953.
R.
E.
Palmer, Secretary
Edison
19, 1953
Company
reported that
DIVIDENDS
TO
PREFERENCE
STOCK
4.48% CONVERTIBLE SERIES
HOLDERS
DIVIDEND
NO. 24
PREFERENCE
,
STOCK
4.56% CONVERTIBLE SERIES
DIVIDEND NO. 20
FINANCE CORPORATION
DIVIDEND NOTICE
to
On Mar. 17, 1953. the Board
Security Holders of
The Dayton Power
and
Light Company
Earning Statement for Twelve Months
Period Ended
February 28, 1953
,of Directors declared
lar
•
-
quarterly
Preferred
corporation,
Stock, $7 Par Value, of the Company.
Copies of such earning statement will be
mailed on request to security holders of the
Company and other interested parlies.
mon
The Dayton
on
this
payable to
April 15,1953,
as
follows:
Date
Per
Share
Preferred Stock,
$100
par
1953
Dayton 1, Ohio
The Board of Directors has
authorized the payment
of the
following quarterly dividends:
50
cents
Common
28
per
share
on
the
share
on
the
Stock;
cents
Preference
per
Stock, 4.48% Con¬
vertible Series;
Rate
Payable
28^2
share on the
Stock, 4.56% Con¬
cents per
Preference
vertible Series.
value
5% Series
5-1-53
$1.25
5% Sinking
Fund Series
5-1-53
$1.25
Fund Series
5-1-53
$0.31>/4
$1.25 Series
5-1-53
$0.31»/4
Preferred Stock,
$25 par value
The above dividends
are
pay¬
able April 30, 1953, to stock¬
holders of record April 5,1953.
Checks will be mailed from
$1.25 Sinking
the
Company's office in Los
Angeles, April 30, 1933.
P.C.
March 20, 1953
Power and Light Company
25 North Main Street,
March 27,
of
stockholders of record
made
Bonds Due 1982 and 256,007 shares of Com¬
regu¬
dividends
Stock
The Dayton
Power and Light Company has
generally available to its security hold¬
ers,
in accordance with the provisions of
Section 11 (a) of the Securities Act of 1933,
as
amended, an earning statement for the
12 months period ended February 28, 1953,
which began after the effective date of the
Company's Registration Statement, SEC File
No. 2-9370, (effective January 28, 1952), re¬
lating to the $ 15,000,000
7>V\%
Series
a
share
the Common Stock of the Company,
payable May 1, 1953 to stockholders of
record at the close of business on
April 10,
1953.
on
sue
8. c. Reynolds,
Secretary
on
1,
redeemed
1958
paid in the
PACIFIC
Notice
i
re¬
1958;
April
prior to April
at $104.50 per share
$105.50
preferred
were
and
concurrent sale of
a
year or two ago,
and 6%
when
to
was
Tuesday.
but going rates are still a far cry
from the 5%
group
the
top-
un¬
tended
with
from
dividends
The
COMMON DIVIDEND NO. 173
NOTICE
inflation
Luckily, the situation now
exists, where the common stock
today is an advantageous buy for
will
of 24-
carrying coupons^
are
% to 1% above
being
are
accrued
4.80%.
on
borrowing
be deterring
utilities
market.
money
grade bonds
March
Meanwhile, it
cumulative
plus
awarded
sale
of
Georgia Power's 100,000 shares of
hedge.
'
1
the
Bell
Calendar
cost
appear
of
entry
or
how
to
as
for
pay
Southern
being
sold
raise capital for construction.
5%,
England—
way
it
on
debentures
year
higher, if the dividend
were
bids
Telegraph Co.
If stock
yield
we
"j
-
gratis
Ex¬
which
on
receive
later
away
was
hiberna¬
receive bids for $30,000,000
Dallas Power & Light's $9,000,000 of first 3V2S,
priced at
101.871
value
the
in
April 28.
ing.
a
market
bonds
taught
that
anew
yield 3.40%
floor of value under the current quickly to investors.
sheet, provide what I call
relative
city utility has
$40,000,000 of 35-year
scheduled
the basis of past history, and stocks.
Georgia Power Co.'s $16,000,000
also, incidentally, or|>the basis of
comparative appraisal with other of new 3%% bonds, priced at
100.90 to yield 3.70%, were mov¬
countries.
ance
of
the
to market.
Commission
on
These factors of earnings
yields,
dividend yields, profits and bal¬
of
out
deal is set up for quick dis¬
tribution, the chances
''hung-up" for a spell
this
is
period
DIVIDEND
experience
Price-earnings yields of
present.
which
are
very
liberal;
New Issues Move
prospective profit levels, helped
It can
be said, however,
by the cessation of excess profits
tax,
issue
issues.
new
Recent
less
3.50%
deben¬
motor
with
91/2%,
levels;
and
hence, the
being there, stocks being
hedge. For example,:! have a fair and good over the
long pull
table showing the relation in the
advantage buy on the basis of
rise of common stock to the rise
value,
means
that
the
hedge
in the cost, of living between 1938
against inflation which is pro¬
and 1952. In France, it was about
vided
by the form' of common
60%; in the United Kingdom it stock has really been
given
there
this
nimbly in the
ing
yield
Allied
comes
issue of
change
cor¬
tive
the
on
share
just getting started.
Meanwhile,
offering of 100,000 shares
$4.92
is
now
opera¬
tions.
v
the
first mortgage
be,
matter what the
sion
The
an
government
en
in
that
troit Edison
even
Treasury move.
Washington, as yet, has not giv¬
any clue to what it may have
d summary of what has
correlation, first, between
sing monetary and credit expan¬
through the
if this is the case, as it seems to
it
new
say
caution
medium of lowered bids. But
showing the
comparative radical cut-down of rearmament
changes, country by country, be¬ —and with the British pattern
tween the cost of
living, and prices ahead with the Churchill Govern¬
Of bonds and stocks.
To give you ment coming in, we may very well
abroad, I would
extreme
possibility, as I mentioned, of the traders, and they are keen opera¬
cutting off of rearmament or the tors, are inclined to look for some
tries
happened
that the in¬
of
the part of dealers
on
Eisenhower
outcome
a
between
for
another
tion
move¬
ment which has forced the
of
one
Public
of
yield basis
The Street
look for
to
appears in the offing until
the latter part of April when De¬
at¬
the part of the Treasury
on
satisfying
quiet
profess to
government security market indi¬
cations
Offers Ga. Power Bds.
Proceeds
way
no
never
possibilities.
should
f
Have dug up data in
foreign coun¬
variety.
inclined
between
stock prices and the cost of
If not, what
any particular
to be bought on the basis
inflation hedge? At various
times in the past and
lookout for
Group
stock,
without
par
value,
of
Looking Ahead
Georgia Power Co. is being made
New
issue
today
(March
26)
by an under¬
prospects between
now
and the turn of the
group
headed
by The
month, writing
First
Boston
when Allied Chemical's
Corporation.
The
financing
is due, are for most part of the stock
is
priced
at
$102.50 per
Once
correlation
companies
First Boston
indicating investors
tures.
com-
an
good-name
as
the
on
preferred
yields.
ably behind them.
hedge?
at
of
taken
are
Inflation
inflation?
stock
a
stocks
was
toward
3.60%
A
elf
leaning
a
many factors 2V2S through a 2.90%
determining over-all portfolio pol¬ it is argued, may not reflect any¬
icy as well as in the selection of thing in the way of substantial
The questions are often raised: individual issues.
actual selling pressure.
ow can the investor
Rather, it is viewed as largely
protect him-
hrough the imposition of controls.
The
somewhere
consistent
de¬
mand.
of
over
totalitarianism
priced at 100, also met brisk
I
and
is
branch
$4.92 preferred stock, priced ferred
stock, probably early in
102^4 to yield 4.8% went out May. It proposes to file
shortly
quickly while Pacific Lighting's for $30,000,000 bonds and
$15,000,200,000 shares of preferred, car¬ 000 preferred.
rying a $4.75 dividend rate, and
at
and the holder of stocks consider¬
third
an
So here again, as in our conclu¬
sions about the general
economy,
see a distinction between on the
55
new
The holder of gold fared
best, the
holder of land the second
The
overnmental
reasons
indicated.
65%, but he did not make out
nearly as well as did he who
bought land or who bought gold.
tusion
0
recov¬
com¬
in certain self-interested
quarters.
In general, the record shows that
inflation
I've
already
ered 60% of that
loss, for
partial pro¬
about 60 to
despite the claims and propaganda
oth
which
have
France,
orldwide experience.
that
1951,
course,
the
stocks
tection.
tober,
the holder of creeping gradual uptrend.
fixed interest securities
fared
mon
the Tories returned to
power with
deflation program,
in Oc¬
their
other hand, over the
the individual who fled into
di-
gradually creeping
dollar, in line with
epreciating
and
best,
the other way.
on
1951,
h "°d
had
turn to
ink
you
only saved 30%; if he held them
Conclusions
from
on
upon which period
because between 1938
point of 1949 a
the terminal
Now I'd like to make
usions
much
take,
.
$
*
,
so
HALE,
Treasurer
at
1,
1,
if
'*
r
m
(1364)
Uncommercial and Financial Chronicle... Thursday,
This
BUSINESS BUZZ
Washington.
tion
-.v
to
J
^
/JL f HI
from lbs Nation's Capital
perhaps
could
not
be used unless the Administra¬
could devise
get
the
A
Behind-the-Scene Intersection*
asset
March 26,-1953
scheme
some
government
out
of
housing mortgage business.
The
JL VII'
the
Housing
nance
and
Agency
Home
has
Fi¬
fund
a
of
$$00 million to build dormitor¬
ies for students
WASHINGTON, D. C.
.
Dan
—
ing
deed's tax reduction bill is by
dead. There is
zio means
reasonable
chance
the
JExcess Profits Tax will be
ex-
tended beyond June 30.
r
These
two
preyail at
the
Capitol,
despite
Administration.
is that
there
business
will
The
statutory expiration of the EPT
without simultaneous relief
Ways
and
Means
Committee to refrain from call¬
individuals from the most
ing
ous
up the tax reduction bill
under the general rules of the
B4r. Reed explained that he
Jaag decided not to call up the
Iwjl under the general rules beV cause it would be so loaded with
mnemiments
to spoil the bill.
as
md*, however, has been obvious
from the beginning. Tax legis-
.
Jation is only rarely considered
p
in
the
rule
House
except
prohibiting
under
a,
amendments
"This is the rule which the
iSOi* leadership declines to give
this time.
It is too early
-to aay whether Mr. Reed can
r
.
«t
-£oree
the
rule
out
on
dis¬
a
charged petition.
Reed Opposed
be
j
Social
on
Security
While
Chairman
Dan
Reed
mittee
has
majority
his
tax
of
large and in fact
cheering section for
cut, the rank and file
a
the House is by no means
happy about Mr. Reed's in¬
so
tention
to
put social security
extension behind re¬
form of this scheme.
CBC
Mr.
Reed
is
ardent
an
and
the statements for the record
They
off
April
old
is
survivors
and
age
in
fraudulent, however
correct. The Chairman
some
whereby
outpayments
the
hocus-pocus,
al¬
ready largely destroyed in law,
insurance system.
averse
to
increasing
nique,
equivocating in public and pri¬
vate about achieving a balanced
means
to
budget
increased
the
time it is becoming more
obvious that
the
Eisenhower
reason
Administration
a
■mme
will
not
its mind whether it
top
the hurdle of
make
leap
can
balanced budg¬
a
et in *54 by the middle of April
«r
ble
precipitate
knew
show-down.
a
that
he
will
to
He
have
no
clearer track for his bill three
weeks from
or geven
tie jhas
today,
now
than
his
dis¬
unless
charge petition, which he is
now
free to attempt, succeeds meanidlile.
A little delay, however, means
^uite a bit more to the leaderjship. If they cleared the way
-
for the
closed
feRl
this
at
rule
on
the
tax
time, this would
refcher sharply precipitate the
break between Congress and the
White House
with
on
this issue. May-
time, the thing might
he cured.
Mr. Reed, however, still holds
the trump card. He can prob¬
ably
prevail
the
upon
Com¬
mittee majority to support him
in his refusal, either to con¬
tinue the EPT for any period or
enact
the
a
substitute tax bill. Even
most
ardent
supporters
Mr. Eisenhower's stand
of
against
the Reed bill acknowledge pri¬
vately
suade
that ythey
on
per¬
and Means Committee either
to
continue
EPT
or
report
out
substitute taxes.
So the
leadership, by refusing
Mr. Reed
a
rule
next few weeks
now
on
achieved two things.
the
or
in the
his bill, has
Negatively,
leadership has avoided
tak¬
T.
Chairman of
same
way as
to
Mr. Reed
difficult to find anyone
Congress informed on the
subject who does not agree
privately with Mr. Reed's as¬
sessment
of
the
service
to do
On the other hand, members
acknowledge the political reality
that
OASI, they say, has sold
itself to the
overwhelming ma¬
jority who know nothing about
how they will be nicked when
the time
when out
comes
ments for the
pay¬
contributory
pen¬
loans
to
sub¬
small
busi¬
on
must
The
Federal
wants
nothing
guaranteeing
it
The
would
its
be
as
bank
disburse funds for such purpose.
it
will
take
siderable
political
hand
create
to
agency that will
fessional
small
some
cater
to
the
Hence
political
broad
dope
in
asking for
extension
of
social
a
and
Little
on
this
is
behind
the
business
to the
ten
around
May
Cash at
has
been
years,
a
but
will
which
is
to
1965; a
$48 million to
Reynolds
of
the
old
RFC
Mortgage
guaranteed
mortgage
loan
and
in¬
portfolio,
of
RFC
2,100
and
million
could
be
annually,
curtailed
has
an
of
be
five
to
disap-
sharply
another
GOP.
It
will
and
Than
the
American
that
have
paid
There are, however, other
Stock
The
Federal
has
a
over
$2
VA
and
etc.
Exchange,
86:
—paper-^-on
request.
Marketing:
Principles
An
and
Introduction
practices,
—
defini¬
tions, review questiohS examina¬
tions,
answers
—
Myron S.
Heid-
ship—Barnes
Fifth
&
Noble; Inc.,
105-
Avenue, New York 3, N. Y.
—Paper—$1;50.
la
Sound
■
tv
■'h
■
Transportation
National Welfare:
A
for
the
Report and,,
on^Jfational.
Association
of
America,
Chicago, 111.—Cloth.
National
portfolio of something
of
yields,
Department,
Trinity Place, New York 6, N. Y.
tation
as¬
Association
billion
with
Relations
con¬
Transportation Policy—Transpor¬
U. S. Has Other Assets
sets.
years,
Recommendations
Mortgage
a.
stock
common
on
FHA
loans.
TRADING MARKETS
Riverside
for
difficult
im¬
the
Polaroid
Trading Markets
Cheney Bigelow Wire
A. & G. J. Caldwell
PARL MARKS & pp. INC
and
Wiley Bickford Sweet
Rogers Corp.
Foreign Securities Specialists
"
50 Broad Street... New York 4, N. Y.
Tel: HAnsver 2-0050
h
LERNER & CO.
Investment Securities
10 Post Office Square, Boston
Teletype NY 1-971
coverage
OASI, The Senate does apt
Pfds.
William Wise Pfd.
increasingly
anxious^ to extend the
Co.
Gorton Pew Fisheries
The President
be
Cement
George E. Keith Pfds.
FOREIGN SECURITIES
perhaps impossible to force Mr.
to
More
Exchange
Public
known
principle
hurdle
be
Reed to give in.
reported
traded
American
if
the agency were put into liqui¬
J
—
/
Firm
for
poses
for
United Cape Cod Cranberry
National Company
hand, Mr. Reed's
sincerity
stubbornness
N. Y.—Paper—$1.
classification
issues
some
which
dation.
hap¬
Savings*
States—Na¬
ingsfield aud Albert B.vBlanken-
other hand,
personnel
$14
Bring
may
trial
banks, nearly $80 mil¬
administrative expense of
not
considerable
period
of
runs
First.
Treasury." This
over
and
-
On the
lobby
Mutual
United
Decade—Booklet listing by indus¬
hold the party now has.
On the other
of
mort¬
on
retaining in GOP hands the
evident
is
of
a
is
of
the
of
Dividends
Reed
President
the tax cut bill: Both
proposals
will help buttress the chances
narrow
There
and
duction Act loans.
pro¬
17,
question for the
it
reason
against
loan
substitute
a
satisfy the
talk that liquidation of the RFC
would "return a billion dollars
pen,
So the majority is for Eisen¬
hower
O
sured
sleight-of-
Administration
Liquidation
se¬
curity coverage.
same
the
the
great majority of
Congress believe that President
Eisenhower has got the right
down
and $88 million of Defense Pro¬
con¬
York
secutive
two-thirds
ments in
to
New
$763 million of
loans
&
company
central
a
Bank
York 17,
some
B
lion
as
Director
unknown
Frazer;
Metals, a loan of about $48 mil¬
lion; $46.8 million of invest¬
make
Avenue,
Y.—Paper—$5.
almost
Kaiser
bank
a
to
agency
Commercial
dividends for from 10 to 104
to
inconsistent
position
Madison
N.
Stock
feels
in
Ellmann—Chemonomics, Inc., 400
investment,
an
Studies
Chemical Development— John E.
Among its other assets are
$79.9 million of railroad loans,
position
ignorance of the millions than
try futilely to educate them.
an
Business
loans, and inconsistent with its
So
by
was
loans, with an
average maturity of five years,
make up about $38 million of
making
or
Board
hostile to small business, whilst
at the same time saving money.
to
Street, New York 17^
Y.—Paper—On request.
ings Banks, 60 E. 42nd Street, New
gages.
mem¬
lections from payroll taxes.
better
—
tional Association of Mutual Sav¬
outstanding
dis¬
be
that
is
Booklet
sale calls for only a 20%
RFC has
as
present
Board
direct.
with
Federal
down
rubber
payment.
scale
a
sion scheme exceed current col¬
It
—
lion. The RFC proposal for their
and
a
of
for
report
supervisory
system.
agency
ber bank small loans
that
fiscal
this total.
with
them
the
written
RFC.
One
in
chief single asset con¬
of
original
create
ness,
without doing it
large and as expensive
as
yield
synthetic
plants, in which there
tech¬
to
of
kind
sidized
OASI
present
kind
some
Reserve
is
is
other
or
render
counted.
See Election Benefits
,
of
cannot
Carl
this question.
majority of the Ways
a
Rep.
(R. Kans.)
think the
in
anxiety
named
that
security, Mr. Curtis is said
It
Reed's
some
subcommittee to study social
minute.
Mr.
new
he
Curtis
May, but will stall if possi¬
on this point until the last
Hence
some
make
For
political
course,
he
its
quantity at present, of $500 mil¬
desired
of
put reform ahead of
coverage.
RFC's
sists
to achieve.
The
in
1954.
Despite press reports, the kill¬
ing of the RFC bird may not be
before
At
pointing
RFC Is Hard Bird to Kill
vised
And
to
force the
by first passing
try
hand
the Eisenhower scheme.
plan of revenue-raising without
the big reserve,
so-called, is de¬
hand.
to
House's
easy
1954.
N.
Case
intend
ifewever, it is becoming in¬
creasingly
obvious
that
the
JSiseuhower Administration
is
fiscal
making a bit of a good thing out
being Purchasing Agent?"
of
the coverage, provided a sound
in
51 East 42nd
"Think Moochmore's
that old age insurance is in fact
He is not
Summary of New
Finances
plan must be
without
an
Pocket
City
Citizens Budget Commission, Inc.,
scheme
fact
believes that
May.
or
York
sincere believer that the present
unsympathetic to the Reed bill
Rffr, Reed until the middle of
.
Ways and Means Com¬
shall be met currently by taxes,
Yiay# been willing to stall
.
the
devised
as
-
of
is Relieved
-of these leaders indicate.
.
r.
could
Administra¬
pretation from the nation's Capital,
and may or
may not coincide with*
the "Chronicle's" own
views.)
for
level of taxes in U. S. his¬
legally
Actually the GOP leadership
far from being as
.
this
new
tory.
coverage
^rom the floor.
.
Smv.
of
the
(This column is intended to rei¬
fied the "behind the scene" inter¬
oner¬
.
i
5 ."i.
PRQPER
me&w&e.::
.
if
tion acts promptly.
:
YOUR PRESENTS
IN TH&
million
saved
PLEASE LEAVE
House.
.
•
'
through
the decision of the Chairman of
House
piMOOGHMORE
logic
l±ie
$275
NOTICE TO SALESMEN
definitely be
relief
tax
colleges and
this is needed for defense. Some
PURCHASING AGENT
going to al¬
are
low time to let the logic of the
Reed bill sink into the minds of
the
judgments
news
Second, they
at
universities, under the guise that
ugly break.
an
yet
as
that
■no
initiative in precipitating
an
\v-
V
9, Mass.
Telephone
Teletype
HUbbard 2-1990
BS 69
@FedFRASER