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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 ' Municipal; 6C f ,li Trust Company | -v [ % 1 ' Founded 1824 %Complete corporate and personal trust facilities Correspondents in all parts of the world Pacific Coast & Bonds in New York City Direct Private Wires Bond Department Dean Witter & Co. 14 Wall THE NATIONAL CITY BANK Street, New York, N. Y. Members of and J. A. H0GLE & CO. ESTABLISHED Members of All OF NEW YORK Principal Commodity 1915 Los Angeles • Chicago San Francisco • • Bond Dept. Teletype: Net Pacific T. L. WATSON & CO. ESTABLISHED Exchange 50 BROADWAY • NEW on Markets and 10 other Denver OP THf CITY Spokane OF NEW YORK Western Cities Maintained: Interprovincial CANADIAN Pipeline BONDS & STOCKS Maine Public Service Go. ■ i Analysis upon request Traded Commission Orders BANK NATIONAL YORK CITY Common Stock American Stock Exchange Commodity Exchange, Inc. Circular Active 1832 Members New York Stock Bonds NY 1-708 Honolulu CHASE THE ( Principal Exchanges Salt Lake City Security Exchanges Boston Missouri aVr< Hawaiian Securities Los Angeles 19 Offices ' Executed On All Regular Rates American on Stock Exchange Canadian Exchanges At Request <8> CANADIAN 60 Broadway, Hardy & Co. Members New Telephone New York 4, N. DEPARTMENT Y. WHitehall 4-6500 goodbody & CO. ESTABLISHED 1891 Teletype NY 1-1843 Doxcnox Securities 30 Broad St. TaLDIgby 4-7800 115 New York 4 BRIDGEPORT Tele. NY 1-733 MEMBERS NEW YORK <$> PERTH AMBOY BROADWAY NEW YORK STOCk EXCH. 1 NORTH LA SALLE ST. CHICAGO 40 Exchange Place, Teletype NY 1-702-3 and WOrth 4-6000 Boston WHitehall 4-8161 *<* (4k " 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. ** ' N. Y. 6 Teletype NY 1-27,08 Telephone: Enterprise 18£Q ► -ewe . ' 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