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1
V
ESTABLISHED 1S39
Reg. U. S. Pat. Office
EDITORIAL
I As: We See It
and
at
•r
Commenting
times:, profoundly
its full
on
impact of television, Dr. Faught contends
potential is far from having been reached and
do.
well
use
entertainment
and
of family gravity.
a
safe assumption that everyone here has
popular impressions have been vivid
beyond anything of the past.
Now it is perfectly obvious that very little of
Never in the
"revealed" is defensible in any sense
more¬
law. It will be so regarded, we are certain,
by all thoughtful citizens, even those who label
themselves "realists" in matters political.
respect,
we
into black and white certain other
of
the
be
compound
the
to
as
today's
react
of
seen
of
consumers
as
this
new
Continued
address
♦An
the
Central
by
States
on
Dr. Faught before 15th Annual
Group of the Investment Bankers
page
Conference of
Association of
arriving
from
and
whitney
&
h0llingsw0rth
In
Indo-China,
munist
John
F.
n. e. gas it electric co.
wall, there's
a
fqll in the
Chapman
Russia.
'"V";
•
And in
■
Europe, where many a
knowing observer had
Continued
the
Chapman at 31st Annual
Export Managers Club of New York, Inc., New
20,
1951.
*An
address
by
Mr.
on
page
33
Get Together of
York City, March
State and
Municipal
inc.
Bonds
across
sac0 lowell shops
&
iron, NEW
Canada
Monthly Commercial Letter
upon request
west point mfg. co.
duPont, Homsey & Co.
THE NATIONAL CITY BANK
I
Bond Department
THE CHASE
Boston Stock Exchs.
boston 9, mass.
Tele. BS 424
Tel. HAncock 6-8200
BROADWAY, NEW YORK 5, N. Y.
Tel. WOrth 2-0115
Com¬
battle, and the reinforcemei^sTsrolling into the country are coming frotrk^
France and the United States—and not from China and
A Mutual Fund
reed-prentice corp.
120
of
instep
victories forcing the govern¬
ment to the
NOW IN
Franklin Custodian Funds,
ludlow mfg. & sales
31 milk street,
Moscow, are
the^38th parallel.
almy
&
Members New York &
the
help
running
for the hills north of
dwight mfg. co.
valley mould
disaster in Korea, we're
near
calling
20
America, Chicago, III., March 21, 1951.
initiative in
the score, and
Chinese Reds, with no apparent
reference
accumulated habits,
chores, conversations, recreations, social amenities and
thought patterns of pre-TV peoples and huddle to¬
gether in the dark, absorbed in the fleeting dance of
the big¬
showdown with Com¬
great
After
again
arrogance
in the very way
mid-
since
period
have for the first time
we
munist Russia.
find ourselves vis-a-vis
we
television, is
generally
yet
wigs in the Kremlin the
Perhaps the best
frame
short
the
In
December
of
television at 'this stage
impertinence.
isn't
by the most astute
among us.
REGISTRATION —- Underwriters, dealers and investors in cor¬
afforded a complete picture of the issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 38.
SECURITIES
even
spinning
fine
dewey
recognized
porate securities are
bates mfg. co.
berkshire
which
of
cance
measure
service.* We suspend virtually all the
heat of the day and
markets
to
we
considerations
times
active
on
would
in which
Millard C., Faught
in the spirit
may well be overlooked even by
ordinarily more thoughtful citizens. We see, or
think we see, in the technique here exploited to
the full a very serious danger. In fact, we stand
Continued on page 28
which in the
perspective
clue
feel constrained to put
now
months—the full signifi¬
in 22 months recovered from
real
any
spectacular
challenge is precipitated by a series of
developments of the last three
history of the sciences
presume
with
straight
But, having set the record perfectly
allocated for export.
country's foreign traders are today face to face
of the greatest challenges in their history.
the arts have the total living
To
any
in this
The
Wants fair share of
ever.
one
habits
of a nation been so greatly modified
by a technological phenomenon so
quickly.
r
■
or
quite without regard to whether it violated
over,
with
bedtime tonight.
before
far
indefensible,
than
,
certain that
was
a
non-defense industrial output
This
watched
television. Tonight well over 100,000,000 man hours in
some 11,000,000 American homes will be devoted to this
absorbing new process. Yet even these prodigious manJ
power figures will be overshadowed
by the women hours devoted to TV,
and they in turn
by the children
hours soaked up by the magic tubes
It is
permits both
outlets will be greater
~
unable to enlighten them, but it appears
Most of it
marketing
affect adversely
not
commercial television, and it will make the home a center
ing what heretofore was visible and audible only
to a very few who could be physically present.
There are a great many, particularly the profes¬
sional politicians, who wish they could be certain
what the effects of all this are to be. We are, of
of the word.
and
communication
as
since
defense program and an
adequate and even surplus production in certain lines for
domestic consumption, Mr. Chapman warns this is no
time to abandon profitable overseas business. Says home
market in durables is overbought and need for export
World War II
can
Phonevision will
Holds
medium.
opportunity (and seized it) of seeing and hear¬
was
Corporation
Contending U. S. increased production capacity
no
be made as to what television can
Lists some technical problems confronting TV as
as
question of advertising sponsorship. Discusses
of Phonevision, i.e., box office television, both for
adequate forecasts
comparable to it in our history. The American
people have grown accustomed in recent years to
reading in the daily press about such inquiries and
those who had the interest and the persistence
have doubtless read the verbatim proceedings of
some of them.
Here, however, millions have had
what
Publisher
—
McGraw-Hill International
by the "show" staged by the Kefauver
Committee.
In some respects there is nothing
course,
Vice-President
,.
President, The Faught Co., Inc.
shocked
the
CHAPMAN*
By JOHN F.
By DR. MILLARD C. FAUGHT*
of American citizens have been enter¬
astounded
tained,
No Bar to
High Level Export Trade
Progress and Problems
:
,those sections of the country within "tele¬
vision reach" of New York City, very substantial
Copy
a
Defense Piogiam
Television's Potentialities,
In
numbers
Price 35 Gents
York, N. Y., Thursday, March 29, 1951
New
Number 4998
Volume 173
Tele. NY 1-315
Free
from-
Prospectus may be obtained
your
investment
dealer
FRANKLIN DISTRIBUTORS,
64 Wall Street, New
4@ommem
OF NEW YORK
or
Head Office: Toronto
Inc.
York 5
Bond Dept.
Teletype: NY 1-708
IS etc York
Seattle
NATIONAL BANK
OF
Agency: 20 Exchange PL
Portland, Ore. San Francisco Los
THE CITY OF NEW
YORK
Angeles
We maintain active markets in
Dominion
^Aassachu setts
Bulolo Gold Dredging
Underwriters and
Investors Thrust
Distributors of
authorized dealers
or
,
Chicago
Los
Angeles
1899
CLEVELAND
BOSTON
New York
Chicago
Cincinnati1 Columbus
New York
>
.
.
COMMON
Company
canadian department
Goodbody
Dallas
Toledo Buffalo
Denver
&
Co.
ESTABLISHED 1891
(Incorporated)
Established
Public Service Co.
(all Issues)
OTIS & CO.
Devonshire Street
BONDS & STOCKS
Central Vermont
Development
Brown
and
VANCE, SANDERS & CO.
Ill
Placer
Municipal
Corporate Securities
Prapectus from
CANADIAN
of Canada
Internal Bonds
MEMBERS
Dohmion Securities
Grporatooh
NEW YORK STOCK EXCH.
40 Exchange Place,
115 BROADWAY
NEW
YORK
•
New York 5, N. Y.
•
Members New York
and
Teletype NY 1-702-3
WHitehall 4-8161
Stock Exchange
Exchanges
other Principal
111 Broadway, N.
WOrth 4-6000
105 W. ADAMS ST.
CHICAGO
IRA HAUPT & CO.
Boston
Y. 6
Teletype NY 1-2708
Telephone: Enterprise
1820
The Commercial and Financial Chronicle
2
.
.
.
Thursday, March 29, 195.
(1326)
MARKETS
TRADING
The
IN
Security I Like Best
American Research
t
Polaroid
in the investment and
Corporation
Puget Sound Power &
Co.
Light
they to be regarded, as
an
sourcefulness.
York 5
120 Broadway, New
Teletype NY 1-583
Spencer Chemical Company
Chemical
Spencer
Rights & Scrip
come
tablished
Since 1917
man¬
certain
Members
,'v' v t;
York Stock Exchange
York Curb Exchange
Hew
*
New
120
»
/v-
Richard
a
Camp Manufacturing
Commonwealth Natural Gas
STRADER,TAYLOR&CO.,lnc.
Lynchburg, Va.
Since 1932
TWX LY 77
Specialists in
VIRGINIA—WEST VIRGINIA
NORTH and SOUTH
monia base chemical.
CRAIGIE&CO.
RICHMOND, VIRGINIA
RH 83 & 84
Telephone 3-9137
prepared to make
firm markets in
PUERTO RICAN
ISSUES
months,
and
products for industrial
One
of
stones
in
this
acquisition in early 1950
the
was
Henderson,
Kentucky, ammonia plant which
was built by the Federal govern¬
ment during World War II, and
which has a daily rated capacity
the
of
$15,000,000
200
NY 1-2643
raw
to
natural
the prime
is used as
material for ammonium syn¬
This gives
the
company
a
definite cost advantage over com¬
the
company
Maine Central R. R.
choose the balance
pick and
(Com. & Pfd.)
business with even more
1951
its
usual
care.
Sanitary Products
strategically
Its subsidiaries are
Air Products
throughout
the
United
States and Canada and their facil¬
ities
in
are
most
fense
industrial and de¬
large
local
several
In
areas.
strong
I
growth
confident
values
and
Indiana
a
was
formerly de¬
on
se¬
National Research.
eventually,
a
Charles in
Cambridge, Massachu■
setts
known
„
as
"Research
head¬
quarters o£ the
half
-
century
old
Warren
Brothers,
f
/
»>
largest paving
has
aimed at
year,
pansion of
a
minimum
a
Spen¬
than 30%
expenditure
of
with
cor-»
porate resources, a concrete proof
of
ment
conserv¬
to
out about
L.
Shea,
potential sales ex¬
more
the
ative manage¬
Chemical has added resources
which allow
been
practice
this
John
: -
the
roughly $1.80
earn
excess
company
a
in
1950
t
Penna. Power & Light
South Jersey
/
Common
Gas Common
»
Central Electric & Gas^ ^
Central Public
the $3.10
Utility 5X/2S
American Marietta
,
•
primarily due to
1949,
in
can
released
to" be
soon
increase
2-^442 Teletype BS 328
-Philadelphia Eleclric Common
share before
should be slightly under
shown
Milk Street^ Boston 9 v»
Pennsylvania Railroad
.
profits tax liability.
earnings
31
Tel. HUbbard
taxes.
Dividends
share in 1950, four
Henry B.Warner & Co., Inc.
Memoers
Phila.-Balto.
Stock
Exchange
123 South Broad St., Phila. 9, Pa.
dividends every
paid
since
year
its reorganization in 1942.
Price range on
is
actively
Phila. Telephone
>
Bell System Teletype
PH 771
KIngsley 5-2700
New
York City Tel.:
Direct
wire
to
EOwling Green 9-4818
Ames
Emerich,
Chicago
the stock, which
over-the-
traded
counter, is quite interesting, rang¬
ing from 29 Mi high in 1946 to a
low of 9% in 1948.
N. Q. B.
!
"bread
basket"
territory.
Thus, within
a
Co.v.. *
Ralph F. Carr & Co., Inc.
;
«
*
invested cap¬
the average earn¬
or
formula
ings
Row," are^the
prosperous
of
.
v
It
space
Boston W harf
Bought—Sold—Quoted
.
in
short
.
Eeyes Fibre Company
Institute
contractor
the
ital formula
totaled $1.05 a
'
America.
cer
A
Mexican Lt. & Pr. Co. Ltd.
Saco Lowell and
Using either the
the
9, Mass.
ing World War II. At this plant,
company
will process ammonia
the
r
"
Electric,
General
this
voted to chemical production dur¬
sales
Corp.
National Research Corp.
very
unit of the
Charlestown,
with
Norma Hoffmann Bearings
regular quarterly dividends of 20
far from the Massa¬
of Technology cents each and a year-end extra
The company has
that part of the banks of the Of 25 cents.
Not
chusetts
for
Spencer
at
Arsenal
include
Allis-Chalmers,
Company
Brothers
expenditures
equipment,
tomers
the
behind
^income
Boston
Warren
Teletype BS 259
:
N. Y. Telephone WOrth 4-5000
^
The
sold to competitors.
are
that
modest
and
None
i,.
kets
:
com¬
curity promise much higher mar¬
gas.
Chemical has leased
148 State St., Boston 9, Mass.,
Tel. CA. 7-0425
s e
am
intrinsic
Request
on
been
have
interests
Analyses
cases
While
•
tions.
★
subsidiaries.
in
est
general chemical organiza¬
lished
★
★
available for construction
11 i n g over-the- shops also perform work of a
counter for approximately $43.00 varied natpre for other industries,
per share, the stock is capitalizing Such work includes stainless steel
current earnings only nine times
products, heavy weldments and
against
much higher multiples
assemblies.Recent
cus¬
for the better known, more estab¬ plate
Currently
supply primarily from more
costly
coke
or
less
accessible
farming
U. S. Thermo Control
What it
amount.
that
is
located
record
panies.
gen
for fertilizer
St. Louis IMo.
that
by
mean
than
the
company's
capital to be
typical
many
•
STREET
Simplex Paper
Rudolph Wurlitzer
permitted to hold minority inter¬
by
petitors who acquire their hydro¬
Indiana, which
509 OLIVE
Verney Corp.
year
a
of
which
plant
Stix & Co.
a
poured
plant
adequate
and
supplies
Conserving
MEMBERS
than
greater
dend
This Kentucky
convenient
natural
MIDWEST STOCK EXCHANGE
For
ammonia.
of
tons
thesis.
WHitehall 4-1875
can
working
for
Inquiries Invited
the management is quick
out that this does not
that sales in 1951 will in¬
crease
promise which is not diluted by
but $3,000,000,
the prospect of either a peace¬
Spencer Chemical acquired a
property which after some en¬ time or wartime character of our
largement and revamping is ex¬ national economy.
pected by management to -con¬
JOHN L. SHEA, Jr.
tribute substantially to a major
expansion in sales volume and
President, Shea & Co., Inc.,
gas
Street, New York 5
Dictated
branch offices
J
in
national
are
point
mean
purchase price of
is
& Company
significant mile¬
company's career
the
.
economical
70 Pine
and
products,
nitrogen
with other
net income.
Paul Frederick
to
The fiscal
31,
1950
a
our
ago yet
is ahead.
thirst
of
of
are
(early
fuel usage.
■F. W.-
the
quarterly rate of $1.31 per share,
portending earnings of over $5.00
per share for the full fiscal year
inasmuch as the highest earning
season
Birmingham, Ala.
Mobile, Ala.
the largest part of the
into expansion, the divi¬ business is
paving contracting the
policy has been typically
processes, enlarging from its pri¬ conservative, but recent action in company has a wide diversifica¬
tion of interests. The company had
mary
plant near Pittsburg, raising
the
quarterly dividend an interest: in Six
Companies, Inc.
Kansas,
which is lpcated near rate to $0.45 per share indicates
builders of the Hoover Dam, and
abundant supplies of natural gas a minimum
$1.80 annual rate. I
piDviding
cheap
hydrogen
for estimate the excess profits tax in the construction of the San
the economical synthesis of anhy¬ shelter base to be approximately Francisco Bay Bridge. Its subsid¬
iaries also engage in harbor work
drous ammonia.
Recent research
$4.25 per share, giving considera¬
has been directed towards the de¬ tion
to
the
many
complexities along the Pacific Coast, the cast¬
velopment of new products which which are inherent in computing ing of concrete piling, wood pre¬
are
expected to provide further a base.
This should allow the serving and revetment work along
diversification and improved sales
company
comfortable insulation the Mississippi River. The com¬
volume in the future.
Although against
punitive
reduction
of pany manufactures asphalt paving
new products have not
been an¬ earnings which may be the fate
plants at its shops for its own use.
nounced by the company in re¬
hol
MUNICIPAL BONDS
We
In its
of
current research is
concerned with the field of alco¬
CAROLINA
adjusted capitalization.
quarter* ending
Dec.
showed
earnings
at
rivatives from the anhydrous am¬
cent
Bell System Teletype:
methanol,
and
development,
Spencer
Chemical improved its production
Life Insurance Co. of Va.
<
Ball
which
provide the prime source for all
company products sold.
Specialty
products include liquid carbon di¬
oxide, ammonium nitrate fertili¬
zer, ammonium
nitrate solutions
for industry use, and special de¬
years
Dan River Mills
LD
E.
-
New Orleans, La. -
Unfilled orders today are
75%
almost
of
company
operations
dollars.
period in 1949 to produce record
earnings of $4.61 per share on the
Basically,
Exchange
NY 1-1557
HAnover 2-0700
and 1950 sales and operating
revenues
totaled
thirty
million
does
ammonia
American Furniture
Its
markets.
of
Curb
New York 4, N. Y.
scope
period in 1949, while net in¬
come
rose
37.4% over a similar
this
York
New
25 Broad St.,
pany's strong financial position.
lar
sound¬
York Stock Exchange
Members
policy also helps explain the com¬
ture.
a
producer
of anhydrous
Bassett Furniture Industries
addi¬
ly growing fu¬
is
Trading Markets In
In
improved factors in this ag¬
gressive organization, sales for
the
12 -months ending Dec. 31,
1950 increased 26% over a simi¬
face
Members New
Direct wires to
many
which
icals
BROADWAY, NEW YORK 5
Tel. REctor 2-7815
New
results
the
Showing
types
of heavy chem¬
frfcP0NNELL&fO.
the
payable
notes
in the unlisted
traded
of
ufacturer
President,
Woglom,
ton, Mass. (Page 22)
and
1,000,000 shares of common stock
outstanding
which
is
actively
es¬
Steiner, Rouse & Co!
—
Woglom & Co., Inc., Bos¬
G.
A.
has $10,450,000
company
long-term
be¬
an
on
Exchange).
Stock
the
G.
Albert
Ry.
St.
85,000 shares
(listed
value
tion
Massachusetts
preferred stock of $100
4.60%
York
Works, and
since
sisted of an offering
Brothers Company—John
Eastern
sponsor
par
tary Chemical
has
to
of
Mili¬
the
as
organ¬
was
1941
in
ized
Specialists in
<i
maintained in good balance
despite strong demands for funds
chemical or¬
newer
Bought—Sold—Quoted
Co., Inc., Boston, Mass. (Page 2)
has
structure
Inc.,
Co.,
Shea, Jr., President, Shea &
L.
research and sales de¬
ganizations to make its entrance velopment programs. Latest pub¬
into
American business destiny, lic financing in June, 1950 con¬
of the
One
Securities
Bend, Ind. (Page 2)
Warren
'■
•
; financial
The
been
1920
South
Albert
Analyst,
Security
McGann
ingenuity and re¬
of management
E. BALL
RICHARD
Security Analyst, Albert McGann
Securities Co., Inc., South Bend, Ind.
Corporation
BArclay 7-5660
intended to he, nor
offer to sell the securities discussed.)
(The articles contained in this forum are not
are
New York Hanseatic
Established,
Louisiana Securities
Spencer Chemical Co.—Richard E.
particular security.
Ball,
;
Alabama &
and
Selections
a
participate and give their reasons for favoring a
Interstate Power Co.
Southern Production
each week,
Participants
Their
different group of experts
advisory field from all sections of the country
A continuous forum in which,
and Development
Week's
This
Forum
Jr.
third
pay
<---,
To summarize,
management,
local
appreciation
earnings
the
in
financial
strong
well-secured
dividends,
possibilities,
a
low
OVER-THE-COUNTER-:
INDUSTRIAL STOCK INDEX
12-Year Performance of
35 Industrial Stocks
price-earnings ratio and an indi¬
BOOKLET
cated
return
one-
of
assisted by able
interests,
position,
if New England
ests you,
ren
of almost 8%
inter-,
take a good look at War¬
Brothers,-.largest in its field,
ON
REQUEST
,
National Quotation Bureau
InmmAral'Ad
dividends
so
the current return of
approximately 8% looks reason¬
ably
secure.
This conservative
necessary
in
peace
or war.
Continued
on
page
46 Front Street
22
New York 4,
N.Y.
Number 4998
Volume 173
„•;
The Commercial and Financial
.
(1327)
Chronicle
3
INDEX
By IRA U.
Make
"How to
rent
—John
and Keep It"
the
of
Let's
swoose
(a
and the
the
with
a
___u
AND COMPANY
-
Silverman
R.
3
Ruffjn—7—*
Stop Inflation?—William H.
—Herbert
(with its twin
beds,receivership and bankruptcy)
in
the
'30s, and the resulting
"reorgs," just oodles of these in¬
with coupons," a "preferred stock
with a maturity," and in financial come bonds came into being. My
dog days, I dare say some invest¬ guess would be that there are now
ors
have been tempted
to take in existence about $1,000,000,000
their
"incomes" to
garages
for face amount. Well, how are they
financial flophouse
on
4.
Business
—A.
M.
curities
tinize
believe
may
you
for possible
them
your
let
worthless,
are
us
se¬
scru¬
values.
1
6
Hollis—T—7
Obsolete' Securities
7
Dept.
i
99
"
J
Outlook for Heavy Consumer Goods—R. A. Weaver
Foreign Exchange Controls—They
Though
4
.
_
Coming Shifts in Export Markets—Stanley E.
•
INVESTIGATE
Cover
Serious Impacts of Credit Restrictions
States/
7
Cover
—
What;
little.
United
of
Chapman___
Income Bonds—For Income—Ira U. Cobleigh
;
mileage flitting into the
railroad
goose), and the mule, the income
bond has quietly joined the ranks
of the famous hybrids of history.
It's been dubbed "a common stock
along
move
one-third
with
swan
F.
—Millard C. Faught_
How
Along
llCHTflWEItl
B.S.
7
p»ge
Television's Potentialities, Progress and Problems
some
*
"combo"
'*
•
Defense Program No Bar to High Level Export Trade
of
random comment on the origin, nature, and cur-.
position of the bond that sells like a flounder—flat, that
is! Plus brisk treatment of four typical issues.
Giving
•''
„
,
Killing in Wall Street
a
f
Articles and News
COBLEIGH
Author
^' V
'*
V
WALL STREET,
NEW YORK
I
9
WHitehall 4-6551
Telephone:
Should Be Removed!
10
Strong
Inflation—and What We Can Do About It
—James
L.
Fitzgerald-.-
11
*
,
-
,
help
—
the
"We
fix flats."
Let's
doing?
advertise,
that
ones
take
of them.-
some
gander
a
at
What
1
from
chameleon
this
did
disease,
chronic
rather
a
First, New Haven 41/2S due
come
either
,
ful"
life!).
Now,
failures
these
an
"event¬
almost
always
railroads led
have the
to
pay
but latterly con¬
of equity,
together with
consideration
for
possible
the
cepts
some
road;
dictated throwing
a
1947, cut a lot of fat off the
bone or two
security
junior
been
has
done
the
For
past 30
a
years,
com¬
posite picture of what the average
$1,000 railroad mortgage bond¬
holder got out of bankruptcy re¬
organization would look some¬
thing like this:
which
bond
on
Blair, Rollins
Taxation
•
Gain in
Reports Slower Rate of
23
—
23
25
pavings
ered fixed and
ting for years!
about
short rundown
obstetrics of "incomes."
on
the
They
given out with two
prevent the pos¬
were
ideas in view: to
sibility of
a
recurrence
of bank¬
ruptcy by (1) cutting down
fixed
principal and interest—often by a
half;
and
date
on
(2)
setting a maturity
Bank Deposits— 44
tially beyond the life expectancy
of
the
4V2S
holder!
2016, Frisco
average
due
Milwaukee
and
2022,
2044!
v.
See
what
I
Seaboard
4V2S due
4*/2S due
Stocks
Cover
12
16
24
i_l_.
s.
most
ness.
ties
lien; sometimes it is sweet¬
by a conversion privilege;
and in recent years fairly heavy
All in
funds
almost
is,
everything
bond
not to be
May
.!
Reporter's Report
Our
Governments—
Our Reporter on
are
has
of regular interest pay¬
That, as the title indicates,
—
4s
percent
Now—Guess Who?
has
1, 1991.
Four
regularly been paid
—
on
page
7
* Column not
X Drapers'
Weekly
Twice
'
«
••
25
Park Place,
Spencer Trask & Co.
HAnover 2-4300
50 Congress Street, Boston 8
plete
Hubbard 2-8200
•
-
Chicago
-
Glens Falls
-
Schenectady
-
"XT.
Worcester
issue)
vertising
and
every
—
MonLrfeoml
Monday (com-
44
corporation
city news, etc.).
Offices:
135 South
111.
Request
New York 5, N. T.
Tele. NY 1-2078
...
w.„.
n
n
Air Products
news,
Baker-Raulang
25, 1942, at the post office at New
York, N. Y., under the Act of March 8,
ary
Di-Noc
1879.
Subscription Rates
Subscriptions in United States, U.
Possessions,
Territories and Members
S.
of
Stromberg-Carlson
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per
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yearV
Bought—Sold—Quoted
0(her Pub|ications
Bank and Quotation
Record - Monthly,
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Note—On account of the fluctuations in
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(Telephone: STate 2-0613); be made in New York funds.
bank clearings,
records
Other
.
market quotation
state
Chicago 3,
President
March 29, 1951
statistical issue
and
<
EIGGS, Busines, Manager
Thursday,
on
PETER MORGAN & CO.
31 Nassau Street
Copyright 1951 by William B. Dana
.
Company
*
1
Editor & Publisher
Members New York Curb Exchange
Teletype—NY 1-5
Albany
to 9576
SEIBERT,
DANA
WILLIAM D.
-.
„
New York 7, N. Y.
2-9570
REctor
'
•
COMPANY, Publishers
WILLIAM B. DANA
7
WILLIAM
4
Analysis
Reentered as second-class matter Febru-
Patent Office
Reg. U. S.
HERBERT D. SEIBERT,
York Stock Exchange
.
•
FINANCIAL CHRONICLE
i"
preferred stocks
New
and
COMMERCIAL
M
77
Members
Magnetic Recording Tape)
Gardens, London, E. C., Eng-
land, c/o Edwards & Smith.
""
*
,
>
7
available this week.
29
The
Yl 5
(Manufacturers audiodiscs,
Tel. DI9-3430
•-*"
High Grade Public Utility and Industrial
40 Exchange PI., N.
Audio Devices, Inc.
18
20
38
26
2
34
Washington and You
MACKIE, Inc.
Teletype NY 1-1825 & NY 1-1826
5
____
(Walter Whyte Says)
Tomorrow's Markets
■
25 Broad Street, New York
—
____
Like Best—
The Security I
Published
of
—
&
HA-2-0270
due Jan.
Continued
interested in offerings
ji.
!__
7 The State of Trade and Industry—
neapolis, St. Paul and Sault Ste.
Marie
Registration
Securities Now in
Then and
—
7#
Singer, Bean
41
16
—
Securities Salesman's Corner-
;
are
———
Railroad Securities
•
Got another live one here: Min¬
depends on income. 7
We
^
Securities
Utility
Public
;
—
;
Prospective Security Offerings—!:
sneezed at.
you
ments!
Wilfred
Observations—A.
!!"•
28
5
43 v
25
Banks and Bankers
News About
and their junior mortgage
lien, a less diluted one. Also 4J/2
points of interest is due May 1,
1951—only a month away. At 64,
New Haven 41/2S, assuming pay¬
ment of interest, yield 7%—a rate
so.
been done to the bond except as¬
sure
this
—
^urer,
have been set up
to buy in the bonds.
Generally,
too, unpaid interest,
if any, is
Fact
NSTA Notes
all, the big factors sweet¬
cost reduc¬
tions, and the sinking fund "buyin." With constantly less of these
41/2S outstanding, their interest is
ening
__
Funds
Mutual
likely now,
plant looks less
Activity..
of Business
Indications
Dev. Res. Corp.
'
22
*
35
14
29
Europe"
Ahead of the News—Carlisle Bargeron
From Washington
Associated
•
8
29
Recommendations
Guess?
You
Einzig—"Disinflation in
ago.
a
cumulative for three years or
Did
however, than it did six months
ened
sinking
is about the
in the busi¬
Personnel and unused facili-,
have been sternly reduced.
cost-conscious
Expresso Aero
8
Investment Field
Coming Events in the
big and "iffy" plus for traffic
on this road is the projected New
London steel mill. The building of
this
___—
Dealer-Broker Investment
aggressive.
more
A
bond
in
is
Securities
Canadian
v
Copper & Steel
Man's Bookshelf
Business
*
contingent interest
1950. Traffic
Present management
should live so long!
Usually the structure of the
is strengthened by building
Harrisburg Steel
...
Continental
(Editorial)
Bank and Insurance
•
You
mean?
.
Regular Features
times in
1.62
solicitation
substan¬
bonds
income
Lear, Inc.
27
—
,
That gives you a
Philadelphia and Los Angeles
O.K.—three years of good
As We See It
Direct Wires
r
High of
Investments-———
in Bond
Sees Increase
>> *
hunt¬
ing during which these bonds have
$500 new first mortgage 41/£s.
varied in price from 27 to 67.
$400 new income 4V2S.
(1) How good are they today, and
One share new $100 par $5 pre¬
ferred stock plus a dash of (2) will they continue to pay?
Answer to (1) is, pretty fair, and
cash to soothe the holder for
to
(2), probably. Earnings cov¬
interest he hadn't been get¬
of Insured Banks Reach Ail-Time
Billion
______
$168
—_—.—
7.
Up to $1,000 From Federal
'*
23
Deposits
"
.
*
_____
!
Teletype NY 1-3370
BO 9-5133
23
—
Would Exempt Investment Income
have
each
discount.
(Boxed)
Hear!
Hear!
Hear!
Incorporated
Broadway, New York 6
61
,
—_____
Estimates Values of All Listed Shares.—
-
Reilly & Co.
'
23
_
Year's End
Toward
Burden
J. F.
____" 22
____
Board Looks for Full Mobilization
Conference
Industrial
finan¬
18
,
Inflation, Short of War
7 Predicts Decline in Building
strong sinking fund has
a
18
Co. Issues Statement
&
Foresees No Wild
al¬
ready retired $16,000,000 by buy¬
ing in the market at a substantial
and
!__ 18
____.
Jules Backman Warns of Inventories
paid $45 per
May 1 since 1948.
Interest is cumulative up to 13V2 %,
41/2S,
School-
sored by University of Chicago Law
000,000 of fixed debt, followed by
about $71,000,000 of these income
by
8
16
„.
Conference Spon- ■/
Mobilization to Be Discussed at
Economic
left $144,-
cial structure, but still
holders. This
reorganization
(a word meaning "I owe you ten,
want to try for five?").
to
5
;
unprofitable passenger traf¬
Reorganization, concluded in
fic.
of earning power, have
recovery
4
Predicts Drop in Electric Appliance Business..
lot of
v
19
.____
Redemption Values of Extended Series E Bonds—________
lightly on their way back to the
mines; and the road lacks those
great, long-haul stretches which
fatten the earnings of Western and
Southern carriers. Also, there is a
bonds; so the holders
foreclosed. In early times they took
2
Impact of High Taxes Cited by Ernest T. Weir!_
Elisha M. Friedman Is Dead—_ j___1—___
empty hopper cars to rattle along
mortgage
over
,
freight has gone one way—heavy
coal
movements East, requiring
on
were
15
Mobilization Speed-Up—Frank R. Garfield- 17
DeGraff
—Herrell
Historically, too much of the
ucts.
cail
(brother,
lawyers
default"
of
"event
an
the
what
constitute
13
Wickersham, Jr
Will Our Food Supplies Be Adequate for Another War?
prod¬
manufactured
of
sortment
failures
Such
indebtedness.
12
_^.T.
Colleges—Roger W. Babson.—
The Impact of the
England, with over 70% of freight
revenue derived from a broad as¬
capitalization—inability to meet
interest and/or principal payments
on
Business and
.
ven
Economic Policy?
Roadblocks to Progress—Cornelius W.
;
1,800-odd miles of New Ha¬
track
serve
southern New
fic.
periodic exposure to
over-optimism
or
over¬
traceable to
International
Our
—George A. Sloan
July
1, 2022. This road, through theinto being, anyway? Well, sir, I'll
years, has had its problems. Trol¬
tell you—it was railroaded into
ley trouble in 1913;: too much in-"
existence!
Even before this cen¬
terest to pay in the '30s; plus a
tury
began,
railroads
suffered not too well-balanced freight traf¬
How
Be
Should
THEODORE YOUNG &
40
Exchange Place, New York 5,
WHitehall 4-2250
CO.
N. Y.
Teletype NY 1-3236
4
The Commercial and Financial Chronicle
(1328;
How
H
or
Stop Inflation?
facts
dollar-pro¬
Industrial leader contends mobilization needs and
higher corporate
or
income taxes. Instead recom¬
mends: (1) effective use of Federal powers to control private
credit; (2) government economies; (3) a uniform manufac¬
turers' excise tax (as preferable to a consumers' sales tax);
middle-and-upper individual
and
what
1939
(4) increased productivity and production.
stands
today as the
greatest threat to the national de¬
fense program and the future se¬
curity of this nation.
Unless
and
soar
will
we
go
on
under¬
fixed
plight
thosp
of
incomes
is the
but I
strongly
years,
phasize
as
on
rnpst tragic.
inflation
family and
hurt
hit
has
want
I
as
every
to
em¬
can
that
American
that they have been
they realize it or
whether
not.
true
that
threatened
There
most wages have
than kept pace with the rise
in the cost of living. But, while
American
has
earner's
wage
in¬
been
gooing up, infla¬
tion has been tearing down his
family's future security. Inflation
has been taking big bites out of
the value of his savings account,
his v/ar bonds, his insurance pol¬
icy, the money he paid into pen¬
sion plans and social security.
come
Let
floating
dollars
more
are
security.
future
our
has
inflation
in 1939,
and so many
get a feeling of prosperity. It is
something like the man rowing a
boat in the river above Niagara
Falls.
gets
current
the
As
life
stronger,
He
great.
looks
doesn't have to worry about row¬
ing
He puts the pos¬
going over the Falls
and enjoys the
more.
any
sibility
of goods has doubled, the
supply
of
money
of
of
mind
his
going to crash over the Falls
tomorrow. I'm not predicting that
are
headed for the
type of runaway inflation that hit
Germany after World War I or
inevitably
classical inflations.
other
past
But, during the
we've
tion
had
in this country.
And
time to halt it
that the
know
we
12 years,
of what infla¬
taste
a
do
can
give you some exam¬
ples. The $100 United States Sav¬ is before it starts galloping. We're
ings Bond he bought just before faced today with a tremendous
the war is worth only about $55 defense program—tens of billions
in "purchasing
power
now.
He of dollars a year for how many
paid $75 for it. The $5,000 insur¬ years we don't know. ance
policy he took out in 1939
How we meet this problem of
provides only $2,750 worth of pro¬ financing our defense efforts is,
tection for his family today.
I believe, as important to our na¬
The savings account of $1,000 tion's future as the plots now be¬
me
is worth
only $550 today in terms
of 1939 dollars.
Now, when you
figure that the American people
have about $180 billion in per¬
sonal savings and $214 billion in
*A
statement
conference,
New
ing hatched and executed in the
Kremlin.
Nothing would bolster
,
Communist plans more than to
have America drained and weak¬
ened
get such a great in¬
money—$80
1939 and
1951?
its
cover
the
At
risk
tion, I think
of
deficit.
oversimplifica¬
that indollars chasing
flation is too many
too few
goods. The money supply
outstrips the goods available. And
the so-called "gap" between the
two is reflected in
price increases.
The sta-
about them
$27
can
come
through 'deficit financ¬
banks;
that
or
both. I might say here
Korea,
commercial
since
banks
have
increased
their
loans
believe
the
that to protect the value of
dollar,
ment
neither the govern¬
our
banking
system
nor
should be allowed to increase the
supply faster than we in¬
money
the supply of goods on the
civilian market.
crease
The
first
requisite
private credit policies is sound fi¬
nancial policies by government.
But
sound
policies
government
alone
aren't
financial
enough
to
establishment
of
the
Fed¬
eral Reserve System. The basic
responsibility of the Federal Re¬
serve
System is to protect the
value of the dollar from being un¬
dermined by unwise private credit
policies. In the last few years, the
Federal
Reserve
from
has
been
using these
pre-1
powers,
,j<
of
an
artificially low rate
interest for government
has
been
bonds
control the private credit sys¬
Nothing must be permitted
anti-inflation
program
is to place Federal finances on a
basis—force government to
non-essential spending to the
make a balanced budget
bone to
available
on
The Government Spending Com¬
of the NAM (headed by
mittee
RADIOACTIVE
#
Members
•
—
Company's
•
Help in Investing
and Trading
New York Stock
Exchange
•
&
♦
Chemical
Industrial
growth
panding
One Wall
addition
to
Division
number
of
include
Universities
plants.
•
A
•
in
Customers
increasing
and
•
share
Energy Commission — Govern¬
Agencies—Dow Chemical—Carbon
Carbide
an
■
per
*
Atomic
ment
■0
$2
Selling Under
.
Street, New York 5,N.Y, *
situation
Atomic
Write
in
the
ever
ex¬
Energy Field.
or
1001 CHARTS
'iSZr GRAPHIC STOCKS,
Covers
Nearly 12 Years
shows monthly highs, lows—earnings—divi¬
dends—capitalizations—volume—on virtu¬
ally every active stock listed on N. Y. Stock
arid N. Y. Curb Exchanges to March 1, 1951
Single Copy (Spiral Bound)..$10.00
Phone
Yearly (6 Revised Books)..$50.00
Jb Office* from
coast to coast
GREENFIELD & CO. Inc.
#
40
:
Exchange Place, N. Y. 5
"I;
to
of
If
Two possibilities
turn
we
additional
or
to
borrowing,
deficit
financing,
right back in the old in¬
flationary spiral. History proves
means
we'll
be
that.
To
protect the dollar, then,
only possible alternative is to
the
increase taxes.
actly
No
knows
one
amount
the
it's bound to
to
come
ex¬
F. W. STEPHENS
HA 2-9290
•
«
*
15 William St., N. Y. 5
HA 2-4848
"Our
a
But
minimum
perhaps finally
closer to $25 billion annually.
What are the possibilities for
such a
first thing that
huge
comes
sum?
The
to mind is:
What About More Taxes
on
the
Corporate Profits?
1950, total corporate profits,
before taxes, amounted to $39.8
billion.
At first glance, this looks
good
dirt.
But before
that conclusion, let's
pay
to
at
the
of
some
American
mounting
taking
economy.
scale,
On
a
is
government
from business
money away
that otherwise would be
concerns
paid to private individuals in divi¬
dends
or
prove
and
would
be
used
expand
to
private
im-?
busi¬
ness."
Kahn Heads
details.
Of
the total of
$39.8 billion, corpora¬
paid nearly half in taxes—
Dept. for
E. F. Hulton & Co.
E.
F.
Hutton & Company, 61
Broadway, New York City, mem¬
bers of
the New York Stock
change,
on
In
like
*
situation," he con¬
tinued, "illustrates forcefully the
impact of the cost of government
of $10 billion and
raising
out.
tax
additional;
of
that will be needed.
revenue
employee,
compared
with
per employee in 1949, Mr.
Weir pointed
v
fund-raising ahead
Borrowing
open:
share, and amounted to $2,310
a
$1,554
Ex¬
that Lawrence
R. Kahn has joined their staff as
manager
of the investment re¬
search department.
J
announce
Coburn & Middlebrook
(Special
to
The
Financial
Chronicle)
BOSTON, Mass.—John V. Flan¬
agan has become associated with
Coburn & Middlebrookr 75 State
Street.
Mr. Flanagan was previ¬
$17,7 billion. That pulls the total
ously, with Kenneth B. Hill &
down to $22.1 billion.
Of this'
Co., Clayton Securities Corp. and
$22.1 billion after taxes, $5.1 bil¬
tions
lion
the
was
result
having
of
business
increased
Perkins Co. Adds
For example, a business inven¬
$1, by the end of 1950 had become
worth, say, $1.25.
This increase
of
shows
cents
25
«s
business
profit upon which taxes have been
paid, although the company still
has just the one unit.
Obviously,
since this "profit" is already in¬
vested and necessary for the con¬
tinued operation of the business,
the
is
amount
not
available
for
This
additional taxes down to $17
bil¬
lion.
new
(Special to The Financial Chronicle)
BOSTON,
Stewart
staff
of
c
balance
is
Perkins
Milk Street. He
Trusted
$17 billion is*
available for
investment and the
dividends to stock¬
payment
of
holders.
Can
William J.
—
added
been
to
&xCo., Inc.,
was
Funds, Inc.
Hotel Weylin
meets the
we
afford to tax
a
requirements
«
discriminating
substantial part of this away?
Central Location
Spacious Rooms
Homelike
Atmosphere
Delicious Food
Intimate Cocktail- Lounge
Excellent Service
Let's Look at Dividends First
In
1950,
$8.9 billion.
total
dividends
to reduce the total by taxes?
answer
to
were
Would it be desirable
The
For reservations
Theodore 6. Archibald; Manager
PLaza 3-9100
'
this
question rests on
whether stockholders are getting
Continued on page 37<t
Madison Ave. at 54th
the
31
formerly with
of
currently
capital
Mass.
has
of the
This
what
Frederick C. Adams & Co.
in
brings the total of
profits which could be taken in
request
Francis i. du Pont & Co.
task
mous
taxes.
PRODUCTS, INC.
:>
an
per
for government.
book value.
sound
ELiot 304O
price record
of selected bank stocks
as
are
granting maximum
all see an enor¬
even
to
possible.
Recent
But
inventories
successful
sales, compared with the 10.77%
ratio of earnings to sales. Taxes
amounted to $9.31 a share of stock,
compared with earnings o# $7^55
economy, we can
to interfere with its determination
cut
'
we
tory item which in 1949 was worth
SEATTLE
-
ele¬
Additional Taxes
look
an
if
program
Ernest T. Weir
Federal
$68,546,069. This, he added, was
$10,000,000 higher than net earn¬
ings and represented 12.76% of
beat inflation.
increase
of
for
this
key
a
considered
be
must
jumping
in
as
out
state and local taxes last year was
of the several parts
one
integrated
important than
protecting the value of the dollar.
The upshot has been an enormous
more
economy
only
which
know, the Administra¬
tion has insisted that protection of
a
specific price and the main¬
Government Economy
SECOND AVENUE
*/
it is
Weir
that provision
study today and regard strict gov¬
ernment
in
the
Corporation,
Mr.
program
releasing
are
we
by
pointed
ment in the anti-inflation program,
you
tenance of
military
paid
1950
National Steel
undermining the effectiveness
of ,our foreign aid policy.
which
the
taxes
be eliminated—and
our
burden
by industry.
not
emphasize this—without
weakening
flationary credit expansion by our
banking system must be followed.
The
need
for
sound
private
credit policies in this country led
to
is
or
taxes.
keep private credit from carry¬
ing the inflation still further.
John R. Lewis, Inc.
Teletype SE 105''
I want to
in¬
prevent
The second great requisite for a
1006
further could
the
Referring to
information
saving in the military and
foreign aid programs, investiga¬
tion may show that several billion
definite
to
than half the
more
while
And
protect the value of the dollar. A
request
cn
we
was
Corporation,
to
being borne
are
program
called
must remember
saving, but
sound
for
United
States,
tax
report to stock¬
the year 1950,
concern
the
attention
a
While
nearly all economists
steel
in
earn¬
share.
a
largest
the increasing
a
in
of
Weir, President of the
Steel
$70 billion-plus budget, $5
billion may not seem like much of
by $8 billion.
I
fiftn
currently
tial
Trading market maintained
Analysis available
faced
are
available for appraising the poten¬
tem.
G0LD-01L—LEAD—ZINC
with
we
This points up the fundamental
fact that increased money supply
to
and Operate Tungsten
Mine and Mill for Canadian Gov't
When
installment credit.
ing by the government; or credit
expansion
by
the
commercial
National
will discuss them
we
annual
covering
T.
Ernest
few minutes.
a
national budget in 1940.
the Federal Reserve of its powers
Will Build
of
where
by the banks to business, on
real estate and to consumers for
place to stop inflation,
therefore, must be the exercise by
Limited
in
end
made
The first
Development,
at'the
his
In
holders
recommend these cuts be made,
if you have any questions
we
billion—
private credit
inflationary character.
Placer
chart
a
sales
share
ings of $7.85
eign aid and the military program.
have
its
per
stock, compared with net
it is possible to cut
billion out of the Fed¬
budget without touching for¬
You
12.76% of
and $9.31
1950,
almost $5
and
other
The
sents
Spending now."
that this
As
can say
we
taxes
billion resulted from private loans
by the Administration.
What Makes Inflation?
1951.
than
more
Weir, head of National
Corporation, reveals total
paid by this company repre¬
Steel
This study is being released to¬
June
of
vented
by inflation.
by Mr. Ruffin at a press
York
City March 28,
•
has
30, 1950) had been
created
by the government by
borrowing
from
the
banks
to
Revolution—and
France after the
of
between
agree
Now, I'm not predicting that we
we're
we
Ernest T.
day, and you will find it in your
folders, titled "Cut Non-defense
We believe
Thursday, March 29, 1951
.
.
Impact of High Taxes
realistic reductions.
this statement showing just
crease
ride.
more
the
how
pockets—how
our
out
It's
of us Americans don't
inflation has picked
many
realize
right)
my
eral
1951. In other words, while the
supply
(as
Unrealized
on
in
today,
itstics shows that $53 billion of It
strangest thing about it is
The
that
we
halting inflation.
around than
living
They have had to accept drastic
cuts in living standards in the last
dozen
in
Pocket-Picking
to
mining and devaluing the social
security, the pensions, life insur¬
ance
and
the
savings of every
American family.
The
have
stake
tremendous
the
see
the
will continue
of defense
costs
inflation
check
we
to
all
Between
1951.
tripled.
protection, it's easy
life insurance
and
here
over
just completed an anlysis of
non-defense Federal expenditures
for the fiscal year 1952, with rec¬
ommendations for some sizable and
and
How did
Inflation
happened
actually
Mr. Dibble
has
total industrial
production has just about doubled.
According to the Federal Reserve
Index, the increase has been from
109 to 219 (as of January, 1951).
But
the
money
supply has in¬
creased much more rapidly—from
$36 billion in 1939 to $116 billion
1939
President, National Association of Manufacturers, and
President, Erwin Mills Inc.
be accomplished through
of
between
By WILLIAM H. RUFFIX*
tection cannot
Now, what happens in a defense
war period?
Let's look at the
.
Sf-i IJew .York 22
Volume 173
Number 4998
.
.
The Commercial and Financial Chronicle
.
(1329)
Redemption Values of
<r
Extended "E" Bonds
March 26 of the
on
bill which provided for
of
J
.Series E Sav•
.
:•
ings
Bonds
for ten years,
Carloadings
.
.
Secretary of
the
\
John
W.
der,
issued
i
•
Treasury,
Snya
statement out¬
:
lining the
tions
op¬
and
re-
investment
privileges to¬
gether
with
i
the
new
re-
1
demption val¬
available
ues
John W. Snyder
to
Se¬
extended
ries
table
The
Bonds.
E
or
owners
of
re¬
demption values during the period
of extension of
'
Vz to 1
1
Value
year
$100.00
101.25
__
year
IV2 years.....
to
102.50
IV2 to 2 years
2 to 2V2 years
2%
3
to 3
to
103.75
105.00
106.25
107.50
108.75
110.00
111.25
112.50
113.75
115.00
116.25
117.50
120.00
years.
31/2
years
3y2 to 4 years
4 to 4!/2 years....
4y2 to 5 years
5
5y2
to
5y2
6
years. _•
6 years
to
6y2
to
years
6j/2 to 7 years
7
7y2
to
w_
years
7j/2 to 8 years....
8
3y2
to
8y2
discount
9
to. 9y2
9V2
years..
10 years.—..
to
of
End
10
Ohio
CLEVELAND,
&
Terminal
Co.,
previously with Wm. J. Me-
was
ricka & Co.
26%.
Petroleum
Carriers
bull
last
investments
in
market,
each
Tri-Continental
Warrants
Stock
and
$85.COG
and
of
you
"THE
Lehman Corporation
respectively. ;
,
WARRANTS,"
existing Warrants of interest.
send
$2
to
the
pub¬
lishers, R. H. M. Associates, Dept. C,
Fifth Avenue, New
220
or
send
for
tree
44
33
1
13
Pennroad
Corporation
33
4
3
23
Yorh 1, N. Y.,
descriptive folder.
of industrial
Appreciation Factor
long-term operation.
Exemplified by continuous
operation of a specimen fund.
mailed
at
two
or
irregu¬
three
weeks.
In
V.::
the
reduction
of the
case
the
in
...
$1.00 for next two discussions.
BAKER'S INVESTMENT
TIMING
-
.
holder
tons
i-
the
of
case
tax,
a
event,
1.
Asset
net increment to the
is illustrated in the
100
—
Price
3.
Market
4.
Unrealized
5.
Appreciation
Unreal. Apprec. Distrib. in Capital Gains
6.
New
Asset
7.
New
Market
8.
Total proceeds
9.
Value
Value*—
—-—
if sold at market (5 + 7)
Gross Profit (8 — 3)
—
-
10.
Capital Gains Tax (25% of 5)
11.
Net
100
100
20%
25%
30%
80
75
70
30
30
30
30
70
70
56
52.50
49
86
82.50
,79
6
7.50
9
7.50
7.50
—1.50
Profit
Assuming
★
—Cf
we
0
-
see
.
...
-
forthcoming
"Steel" assert^, since June allocations for
now*
under consideration and June,
are
their
-
be
when
..
J..
priorities and allocations system.
The agency estimated
month for
within reach
Automotive Reports"
goals,. "Ward's
that approximately 607,000 cars
the best volume
660,116 units were completed.
since last October,
Truck output is expected to
-
Continued
on
30
70
In memory of our beloved
7.50
friend
Elisha M. Friedman
-fl.50
1949.
Continued
directive pro¬
moderate decline in automotive production
a
production
built this
on page
33
appreciation of his tireless
unselfish efforts
on
behalf of the
financial community.
Members
on
In any
presumably, was to
United States producers appear to be
March
and
1948, March 24,
a
But
should
giving
estab¬
convinced
30
*
put
to
all.
that the discount at which the
\
haste
by July 1 if possible.
Some trade leaders appear
be the last month under the loose
will
change in the discount.
"Observations" Dec. 16,
all
making
decision, one way or the other, should be
and in
no
HURON, MICH.
,
grams
open-ended CMP.
the past week,
propective inves¬
tor purchases his closed-end trust shares, must at least exceed
the tax which he will have to pay on the included appreciation
when it is paid out in dividends.
Only in the cases of complete
liquidation or the managers' permanent abstention from taking
Thus
a
shortly?
of
Relative to Varying Discounts
Value
are
plan should be put into effect, or none at
Notwithstanding
of closed-end funds
Appreciation
Translated into
supply problem becoming steadily more com¬
authorities
control
an
closed
observes.
Unrealized
on
the steel
the
lishing
following table:
Tax
Defense needs,
to 50,000 tons.
Controlled Materials Plan into effect
it cannot be avoided.
and
an
opinion is noticeably divided as to whether the new CMP
or closed.
Mounting defense steel needs are
rise to misgivings in some quarters as to the advisability of
of his realization of those assets' stated
discount,
up
( be open-ended
value, its extent must be taken into account, and the discount
correspondingly reduced. Only in the case of a complete liquidatiori, as in open-ending, is such a levy on the shareholder avoided;
in the case of future distribution of such accumulation of past
in
taking
are
being left for non-rated consumer durable goods.
plex
price of the underlying assets, realism dictates
interaction
programs
emergency
on
With
closed-end funds, since discount means a
stands in the way
attain the highest
+
■
;
the basis of average monthly production so far this
year, this means the defense take by mid-year will be running
somewhere in excess of 3,000,000 tons monthly, just under 5,000,000
:
-
to
needs, the magazine adds.
for non-rated civilian
else no major asset
/
:
related
and
that month, possibly
pected
calculating at what price the assets can be actually in the posses¬
sion of the shareholders. Hence, if a tax unavoidable by the share¬
*
Send $5.00 for four months, or
is scheduled
the history of the steel industry.
tonnage
however, are continuing to rise. Prospects are by July 1 approxi¬
mately 40% of steel production will be destined for emergency
account under some type of preference, leaving no more than 60%
tonnage
there is no such tax—or
.
steel
increasingly larger bite of steel production, but, according to
"Steel," the weekly magazine of metalworking, while indications
point to no change in the number of directives for June, a modest
overall increase in requirements for established programs is ex¬
correctly that this process also applies in
companies the value of whose fixed assets
2. Discount
trend-following formula for
'
liquid rather than fixed, because with the former
case
they would ask the ICC to hear the new re¬
possible.
•
<
-
week
in
record
merely theoretical concept.
disposal.
-
PORT
premium
which constitutes a
t^ie return of his capital. To disregard such tax is to keep
case
The maxi¬
$2.26 or more.
as soon as
This
paid by him in getting at his assets; and
dation—in which
WITHOUT FORECASTING
of
quest
the future dividend distributions to the shareholder which must
off
PROGRESSIVE INVESTING
intervals
premium
ing open-end funds, the element of past accumulation of unreal¬
ized appreciation of the holdings, although stated in the trust's
reports to shareholders, is not understood by the investor as it
should be. This is important because of the capital gains tax levy
a
*
sugar and
The roads said
14
20j
on
net ton where the rate
less; 34 cents where it is between $1.51 and $2.25, and
50 cents if it is
considering the advantage of discount, as well as in apprais¬
This
lar
is $1.50 or
34
shareholder
Discussions
premium
Mining Corp..—
gains, constituting a return of capital,
A
13
Newmont
rate hike will not apply to
increases requested will be 23 cents a
mum
17
..
6% boost.
15%
general
a
a
Changes in rates for coal hauling also are sought.
premium
21
on
last, for
lumber and 15 cents a hundred :
fresh fruits and vegetables.
pounds
pounds on
4
.
premium
request for
Defense
MERITS
Sidney Fried.
copy
_
15
12
rates and higher cost of materials and sup¬
wage
items, for which specific money amounts of freight inThese include maximum hikes of 10 cents
hundred
a
23 v>'.
commodities"
will be sought.
creases
they get sold
gradually, while in the latter there is usually complete liqui¬
profitable purchase and sale—describes
your
Advancing
principal livestock
■. V
livestock
plies have made it necessary for the nation's railroads to seek
increased freight rates, and the roads announced the past week
that an amended petition will be filed within a few days with the
Interstate Commerce Commission for a 15% hike to replace their
The
appreciated. But this factor is more important where the assets
phases—explores many avenues of their
mcst
_.
The Unrealized
on
United States Department of
...
products of about 30%, with all the
sharing in the rise.
26
National Aviation Corp..
In
during the first two months of 1951
at *^+40.0^00.0^0000com¬
gain is attributed to increases from livestock and
certain
31
Department re¬
above the like period last year,
15%
The
24%
24
increase
140,000.
largely offset by
conversion of plants from non'
Agriculture reported..
March 27,1951
are
di&cusses Warrants in their different
For
was
earlier request on Jan. 16,
Common
are
by
■
Investors
American
General
production."
Gross income of farmers
TRUSTS
has
appreciated to $44,000,
OF COMMON STOCK
It
defense to defense
from 167 to 190
$500
Richfield Oil,
SPECULATIVE
ported there was no "large-scale
It may be answered
interested in capital
appreciation,
be
sure
to
read
If
General—
Corporation
Equity
the
1942-46,
R.K.O.
$104,000
Corp.
&
to 45,300,000, the
At mid-February, the Labor
others.
declines in
1948, the average
28
International
*
to the United States
in defense industries were
Employment gains
participa¬
CLOSED-END
29%
Express
American
"
February, according
of
highest since V-J Day. However, it pointed out, that the
in industrial employment over January totaled only
market which has occurred since
June 30,1949
Trust
Adams
month
Department of Labor, factory employment rose
Discount
be
WARRANTS
September,
REPRESENTATIVE
OF
the
For
follows:
the discount
the
and
Now again during the bull
DISCOUNTS
a
unemployment insurance occurred.
June, 1949, while the D. J. Average has risen by over 50%—from
161 to 250—the trust discounts have declined instead of risen—as
levy
In
recorded week
it was noted that for the latest slight rise in the overall number of claims for -
of employment
the field
In
already being depre-
are
week of 1950.
considerably above the level for the comparable
-
pared to $3,740,000,000 last year, the
March
between
William
Havens
Tower
4
preciated in their own stock market valuation.
The
market community
is concerned with
Railway & Light Securities._
United Corporation
Building, members of the Midwest
Stock
Exchange.
Mr.
Frederick
industrial production the past week was at a
showing a very slight increase,
while automotive
production, and building construction were
somewhat below the levels of the previous week.
But in keeping
with the current trend total industrial output continued to hold
Countrywide
discount op 11 representative trusts followed this characteristically
illogical pattern by narrowing (instead of widening) from 33 to
133.33
Saunders,
with
associated
Failures
Business
virtual standstill with steel output
.
size to value.
that occurred
W. Sargent have be¬
Donald
Stiver
—
D.
Robert
Frederick,
shareholders'
trust
In the market rise of the Dow Jones Average
(Special to The Financial Chronicle)
come
May
of its
relation
Saunders, Stiver Adds
and
Industry
J
forecasting future price changes in the discount, in lieu of the
(from
years
of extension)..—
date
N.
Wilfred
the
on
assets which
tion in
125.33
128.00
130.67
:
and
.
122.67
years
to 9 years
Index
trust
•
A.
lk
investment
'
Redemption
After Extension
closed-end
shares, in which the size of their discounts from asset value has
an investment foible. The buyers and
sellers of these shares, as in the past,* in this way are acting
precisely in a manner directly contradictory to
investment • logie.
The
irrational
investing
public habitually reduces the discount during
bull periods and widens it during falling mar¬
kets—just the converse of sound practice.
Reasons would dictate that at a high market
level, which is more precarious (particularly
where there is leverage), the discount from
the trusts' underlying asset value should be
greater, and vice-versa. But exactly the op¬
posite characteristically happens in discount
behavior during 'both up- and down-market
swings. Bear market emotion entails a doublediscounting process; that is, there is a growing
$100 Series E Bond
Period Elapsed
of
Price
Auto Production
narrowed, again highlights
follows:
Less than
market behavior
recent
Retail Trade
Commodity Price Index
Food
Some Bull Market Investment Trust Considerations
The
Production
Electric Output
State of Trade
By A. WILFRED MAY
extension
maturing
Steel
The
Observations.
Following the signing by Presi¬
dent Truman
5
of
the
Bi-Monthly Conference
Business and Securities
page
32
6
The Commercial and Financial Chronicle
(1330)
terms
pansion in bank loans, which ex¬
Serious
perienced
Impacts of Credit
Restrictions
outbreak
Vice-President, James Talcott, Inc.
'
President, National Conference of Commercial Receivable
Companies, Inc.
-
After reviewing dangers in current program
trol, factoring
■
of inflation
con-
executive criticizes Regulation W relat¬
concern
strait-jacket which fails to forsufficient flexibility to meet local and special conditions.
ing to
nish
credit
consumer
Foresees
a
.
small businesses shuttng down
restrictions and disruptions due to inadequate credit facilities.
probabilty of
because
Whether
as
of credit
many
I don't think the master minds of
ments and events
cance
of
this
lesson.
they!
It
was
right
emanating from
Moscow.
In
9 2 4,
1
Lenin
so
the
—
father
of
the
missed
Lenin's precept of
signifi¬
could
How
with
Some of
in
line
1924.
economists, like Dr. Melchior
Palyi, are wondering if we aren't
being sucked into a similar trap.
our
called
-
Kremlin
the
Russian Revo¬
lution—is
made
The
re¬
the
when
United
of
the
to spend itself
firm¬
free
to break
way
enterprise
system
of capitalistic
countries, and open
collectivism, was to
to
way
force
them
money,
that
to
print
and issue
the
it
bonds,
many
so
"would
—
much
so
capitalists—as
pressed
he
ex¬
choke
world
so
has
much
of
the
Politburo, was of the un¬
hurried, oriental variety, content
to have Lenin's policy come to
fruition with the passage of any¬
where from 10 to 25 years.
He put
aptly this way: "The Soviet
policy is to get the United States
it
itself
in
out
its
own
gymnasium."
reflect
recall
the
inflation
Sooner
more
had
ualize, if
and
recently the effect of
nation.
a
If
being
by
a
flood
of
the inclination
vanishes.
Vis¬
you
on
and
up
army
the
franc
heavy that
being de¬
times; inflation got
hand; the country was a
controls; and the French
economy a hollow shell, so that in
spite of all of the military prepara¬
tion the country fell an easy
prey
out
of
*Ar.
the
address
Boston
March
by Mr. Silverman before
Rotary Club, Boston, Mass.,
7, 1951.
York
New
New
York
New
Curb
York
Commodity
Chicago
And
of
Cotton
other
Inc.
can
stop
we
check in¬
or
DETROIT
are
that
understand
the
to
the
problem.
check
reduce
I
this
say,
that
is
said
realistic
more
ap¬
prob¬
manpower
made
a
failed
to
can
be Section 708 of the Defense Pro¬
Administration
duction Act of 1950 which author¬
views.
the
serious
that
in¬
'
Some
these
that
too
great deal
a
for
for example,
to
where
or
We
inflation
know
we
must
excess
Malcolm
P.
McNair,
Lincoln
Filene, Professor of Retailing of
the
Harvard
Business
Graduate
School
of
Administration, estimates
that there will be
excess
ing
power
billion
are
the
of
$7
purchas¬
in
1951,
$23 billion in 1952 and $37 billion
in 1953.
These figures, he says,
The
controls
far;
have
of
measure
Program
true.
for
even
there
such
enforce
restraint
blunder
basic
flation.
is
attack
of
causes
when
izes
it
'/■.
the
so-called
for
Control
the
of
some
for
minute,
a
the
President
to
encourag®
broad
there
know,
types of credit
to
by
economists
of
includes such
as
credit
general
in¬
of
influence and, as a matter of
fact, has greatly curtailed the sup¬
ply of funds that banks may lend.
can
selective
are
of credit regu¬
referred to
as
instruments, place limi¬
on
certain types of credit.
These include: (1) margin require¬
ments on stock market loans; (2)
credit; and (3) regulation of real
:»■■■■■
Curtailment
i
„
of
Credit—At
a
tary curtailment of credit
banks
and
who
look
are
with
volun¬
on
more
some
alarm
the
private
However,
something
There
other
it
is
must be
estate mortgage loans.
26
the
f
v
President
<.
re¬
put
curbs
into
of funds
One
its
of
market
for
expansion
(2)
of
maintain
government
'
week
\
prior
to
Eric
this,
appointed a committee
leading economists to give the
subject of private ;credit
whole
curtailment
mort¬
It is
reduce
to
and
Johnston
resi¬
on
the
thus
and
stable
a
restrain
credit,
securities.
1950, the Fed¬
through
would
private
a thorough study.
anybody's guess as to what
construction
its
activity.
purpose
amendments
that there
to
was
recommendations
but
were
Of
made
bring
suffice
^
economy.
it
three sep¬
Rules
on
Bank
H
Loans
'
arate orders issued within
period of time.
,
Is this
an
a
short
i
What
example
are
'
C
■
,
inflationary loans?
past three weeks
supplied with a
the planning that private business preliminary Statement of Princi¬
ples
which
calls
upon
them to
requires in the conduct of its own
screen
loan applications "on the
(1) In August, 1950, the redis¬ affairs?
basis of their purpose," in addition
count rate was raised from iy2 to
What has been the effect of this
to the usual tests of credit-worthi^
l3/4%.
credit
restriction
on
business?
ness.
Banks are being told that
(2) Early in September, 1950*. Hundreds of plans for new con¬
the criterion for sound lending in
the Federal Reserve Board, rein-' struction
had
to
be abandoned.
a
period of inflationary dairiger
stituted a World War IL device
Thus
far
the
Federal
of the careful study and consider-
Reserve
-
ation
of
credit
problems?
Is this
.
;
Within
the
banks have
been
imposed the following selec¬
tive regulations:
Affected by this order
known
at
ulation,
ex¬
12,
Board
X
market
these
has
economists
the
flow
to say
installment
consumer
Feb.
step in¬
will finally be
concerning the restriction of
The ramifications
about a decrease in building in f private credit.
of this problem are so far reaching
order to
provide materials ; and
and could affect the existence of
labor for the defense program. In
so many small- and medium-sized
a matter of a few months, on Jan.
businesses that it is essential that
12,1951, the regulation was broad¬
the
persons
appointed to these
ened to include credit on struc¬
bodies
give
the
most
careful
tures with more than two-family
and study to all
units. And then, on Feb. 14, the thought, * care
phases of the problem and the uL-;
Regulation was- again ' amended.
It is not necessary to spend your timate: effect that the restriction
of private credit will have on our
time in reviewing the details of
these devices the Federal Reserve
The second group
On
(1)
They prescribed
a
flexible
where
indicated.
Oct.
Reserve
course
lations, which
was
On
home
use
*
strait-jacket
gage
market operations, and
fixing of bank reserve-
Through the
with
quested government financial
the
open
the
traditional
to avoid
authorities to develop a plan which
serve
(c)
Production
the
of the various ramifications of in¬
discount rate, (b) the Federal Re¬
requirements.
*
the earmarks of "will you
to my parlor
•
building credit. The aim
of this regulation was to restrict
(a) re¬
Defense
becoming
governmental su¬
pervision, this proposition had all
involved
conscious of could
dential
regulations,
as:
so
view is that insufficient
own
Regulation
is referred
measures
now
the
view of banks
and
eral
two
flationary spiral?
done.
are
control
regulation.
The first group, which
struments
are
an
clamping
down- on
prices when hostilities
out
in
Korea, and they
that the inflationary spiral
(3)
you
advocated
study has been made by
those in charge of Regulation W,
a
credit.
As
Ber¬
economy,
who
stallment credit.
already
measures
initiated and others suggested for
the regulation and restriction of
tations
of
examine,
us
our
Baruch,
My
Credit Regulation
Let
of
of that
advice
advice had been followed.
in¬
regulation of
felt that
we
the
take
Nestor
nard
is
fruitful
more
the
But
What have we, as a
nation, done
since last July to check this in¬
of
old
As for their coming
is
say
gone
the
too late.
controls—they
serious¬
purchasing power
increase production, or both.
part
PITTSBURGH
come
know, Mark Twain once
said, "Everybody talks about the
"
SWITZERLAND
There
be
claim
care
lending agencies.
GENEVA,
of
par-
a
a
our
lems.
the tax increase
have
controls
You
the present time there is
CHICAGO
Some
program.
to
and
bankers,
may
; enter
into a pact, acquiesced in by the
office of the Attorney General,
permitting banks to group together
for
the
purpose
of
restricting
credit. The authority for this vol¬
untary restrictive pact is said to
have been avoided if Mr. Baruch's
is:
NEW YORK 4, N. Y.
There is
on
and
proach
inflationary
the
program.
ditures
companies
vestment
a
Exchanges
Exchange Bldg.
of
ticular.dispute
the
effectiveness
the
phases
many persons
banks—whereby banks
lenders, -. such
institutional
insurance
as
com¬
on
(1)
N. Y. Cotton
doubt
some,
control
.
great
a
and
been
now
-
plan—by
a
while
ating currently, or being contem¬
plated, for the control of inflation
Exchange
who
are
mercial
has
•
into
made
The seven-point
program oper¬
Trade
There
gov¬
wage
laws, a drastic cut¬
ting down of non-military expen¬
Materials; and (7) A
O'.,
on
raw
Board
Inflation and the Inflationary Gap
Exchange
Exchange,
Board
Orleans
New
Exchange
Cotton
Controls
Longer Work Day.
Reserve;
formalized
tax
our
You, in the
happened to the price of leather. 5
The
pressure
of the Federal
and
allocations
and
material, a revi¬
controls,
sion of
con--
is to court disaster.
the
Exchange
price
priorities of
peak
have
1950
to
argue
'*
Stock
(4)
encompass:
Monetary and Credit Policies; (5)
Price
and
Wage
Controls;
(6)
tackle
bank
prices
all-time
an
of
week
can
when
New England area, who are famil¬
iar with shoe business know what
figures at their face value,
negligible consequence.
first
levels
how
the pre-Korean level?
of
ernment
The
climb—carrying
the
wholesale price index 14% above
Reserve
Why, they asked, did not the
categories
System
lacking and
they help hold'the line somewhat,
even
Inflation
Members
Board's
reached
before the end
principles of democracy. As
were
peak
But
increase
not
tinued
obnoxious
to take the Federal
were
Reserve
of
H. Hentz & Co.
•
program
wants
new
week.
which
regula¬
a
Federal
Considering
gap" that provides
leeway within which the in¬
flationary spiral operates.
1856
us
v--;.;-'.--.,/ ;v."
four
under
remain
must
great
a
Act.
destroy, or
seriously alter savings habits,
"inflationary
Established
remaining
the
that
months
tives
of
mess
The
of
American
their
recent
to
crease
inflationary factor, some felt
that consumer credit, even if one
expendi¬
our
'■%;
even
an
not
tures.'
have
must
call
behind this pressure is that
bank loans have continued to in¬
loans
of
to
reason
after
millions
opera¬
like
would
loans and thus restrict credit.
the
or
I
of eredit
in
commercial banks to limit their
on
equality in the proposi¬
become favorites
to the
the
by
Where, they asked,
that
tion
so
usual'—let
as
strict
too
Restriction
broke
To
years.
of
to
to have 'business
the
families
not
we are
Within
subordinated to other families who
of non-essential
As Senator Byrd
is
unnecessary.
;
Credit
restraint
200
ness
five
regulation
a
the
deal of pressure has been exerted
seeking
that
and
contracts is neg¬
"indirect credit restriction."
dual hard¬
believe
.
1950
or¬
of
wages and
we
led
consumers
in
war
tion—which
only manufacturers, jobbers
retailers, but a great number
and
period
those
There is another form
Not
of
current
below
curtailment—presently
merchandise and the seller.
government's civilian
way
a
buyer
far
are
Indirect
production were
the
both
con4
survey
ligible.
se¬
Manufacturers preparing to
on
recent
"late"
in
power
least
so
cut from the
been
has
period. It has worked
showed
billion could be
than $7
business
on
A
likelihood of
output during this transition
ship
recent- report
a
are
lumber
immediate
talking up the subject, somer
thing is being done about it. At
were
full
tion
in
small
by the "Wall Street Jour¬
similar
caught in a squeeze and are hav¬
ing difficulty in disposing of their
example, Senator Byrd of Vir¬
more
/
is
not
other materiel
rious.
For
how
of
«
shows that their
ders
been
impact of revised Regula¬
W
convert to defense
was
others,
greatest indus¬
the world in less
men.
Expenditures for the MagiLine, ammunition, guns, and
The
tion
City.
ginia
nal"
month.
a
taxes
(c)
ducted
W, for if
have
not
furniture.
study
necessity to amend it within
Federal;
late—that
to the
armament
largest peacetime
the
bare necessities.
State;
would
there
(a)
wilderness
weather but nobody does
anything
about it." Well, while it's true we
budgets to build
had
there
(b)
true
part of this country there
ern
before im¬
occur
Regulation
of
position
is under way a
national
program
to
encourage
savings. In any program for sav¬
ings we must have a program of
government economy at all levels:
financed the great development of
this country, bringing it from a
How
in the history of Europe—3,000,000
on
on
is
sections.
give you just another, ex¬
ample: Throughout the southeast¬
to the
as
Such
consideration.
and
(3) Encouragement of Savings—
more
France, after the defeat of Ger¬
many in the first World War, be¬
gan
in 1919, to vote enormous
valued
ones
at all
none
agree
certainly did not
on
$60
flation?
they
and
all
we
been
nave
same
at
your
To
and shortened
period of repayment.
think
country
the
and
in
financing institutions to enter vol¬
untary agreements and programs
to
restrict
private credit >when
such pacts will further the objec¬
than
econ¬
the
other
innumerable
luxuries,
conveniences,
rates
aptly expressed it, "If
will, the staggering
our free society,
on our
economy, and on our free
enterprise system. It has been the
savings of our people that have
catastrophic
the
some
savings
save
effect of this
trial
on
their
see
desire to
and
inflation in France.
sustain the
moderate
excise
de¬
later inflation changes
or
savings habits of
thought.
ultimately
Germany. You will
the morale of
recall
this
on
the politics,
omy,
heavy
in
budget in the
important groups of liquid savings.
dollars,
effect
bank
mention
affected
fore
Businessmen
mills.
desirability of control or regula-'Their principal output up to now
tion of credit, but certainly such
has been going into: (1) residen¬
controls or regulations should be
tial construction, and (2) wooden
invoked only after thorough study
the alternative,
increase
an
with
in
or,
personal restraint in
away
will
for
tax,
expenditures.
deposits, and have about
$54 billion in the form of private
to
cided it
I
is
and loan
insurance,
15, the Federal Reserve Board de¬
was inadequate and there¬
increased the requirements
time.
mention
to
numerous
section of the
the
contemplated. A
great deal of agitation is arising
for the imposition of a national
sales
too
are
this
enacted
spend as usual." And, in addi¬
tion, we as citizens must exercise
watered
You
third
a
the
In
Russian Communist
us
and
in
$68
washed
Let
and
hotels, and other projects which
credit.
purchases—on
regulation had a test run of
a month when,
on Oct.
for down payments
last July
been
addition, individuals
billion of government
bonds, about $13 billion of savings
hold
the
knock
States. ' Our
savings
currency
infla¬
from
United
liquid
people
to
country in
much to fear,
lose
Henry J. Taylor, the noted news
commentator, remarked that the
mind, typified
the
on
No
as
to
the
as
billion.
on
them."
in
effect
posits, alone, amount to
ly believed that the
the
the
and
form
its
is
savings.
individual
Herbert R. Silverman
the
of
tion,
to destruc-
tion."
down
inflation
value
States
Lenin
.
of infla¬
One of the most serious dangers
will
force
the dangers
are
tion?
re¬
come
we
Dangers of Inflation
What
"The
day will
bills have
new
currently,
puted to have
mark,
Taxation—Since
(2)
fact, or not, our economy today is
sharply influenced by the state¬
the
Bank
in Korea.
of
lending—were - at
the
all-time
peak of $52.7 billion on Dec. 31,
1950. However, as I will mention
later, we should take a critical
view of proposals that might se¬
riously interfere with the func¬
tioning of the private banking
system in our economy. All the
experience of recent years strong¬
ly indicates that business loans
can hardly be regarded as a really
significant inflationary factor.
two
to the German Wehrmacht in 1940.
admit
to
period following the
war
of
Thursday, March 29, 1951
.
.
less than
-
the
like
we
of
over
loans—which included all types
By HERBERT R. SILVERMAN*
V
industrial loans
the six-month
Business
on
The
30% increase in com¬
a
mercial and
.
as
Regulation W. This
as you
reg¬
know, controls the
new
ings,
construction
warehouses,
as
were
office
stores,
such
build¬
banks,
boils down to the following:
Continued
on
Does
page
30
Volume 173
Number 4998
.
.
The Commercial and Financial Chronicle
.
(1331)
America and other markets—com¬
Coming Shifts in Expozt Markets
that we will have to
reckon with for the future. Dur¬
ing this emergency, the
Kingdom and countries
By STANLEY E. HOLLIS*
President, American Foreign Credit Underwriters Corp.
*
-
ever,
ficult
exports to Sterling Area and to certain other markets that only
defense
lately ended
.
well
as
receive
not to
'>
U.
Y
export market
obviousiy
tion
to
give
the
business
the
trends
prime
impact
must
on
sion
othe**
also
be
ada
will
.war
avert¬
be
Almost
overnight,.; i t
port trade has
taken
on
a
look.
Stanley E. Hollis
In
many areas, the dollar shortage
has given way to a dollar surplus,
:
There's
an
upsurge
of overseas
buying, to meet urgent needs and
to build inventories.
Today's im-
mediate problem is not so much to
it
is
coverage
as
channel
to
Those who include
Can¬
the export sales territory
in
well
do
to
exchange problem there.
Some, private business will, of
course, continue to be done with
the
in
Kingdom,
oil and other
Western
their
and due to
resources
strategic
importance,
our
national interest demands that
continue
importance,
individual
the
tive prosperity and buying power
now
the
From
United
adequate
of all the provinces.
ure
the goods
export.
solved
assure
zil, Venezuela and Colombia are
likely to become larger and better
Latin American markets, but rela-
available: for
-
to
all
do
we
possible
to
improve trade relations with the
Middle
Eastern
countries
and
to
defeatism
or
for abandonment of
sales,
sales promotion, advertis¬
ing, market research and related
constructive effort.
American
production equipment is capable
of such broad and rapid expan¬
their product
meet
requirements.
sion that,
within
time than
many
Before
v
determine
to
re-
.
increase sales and expand market
where
<
more
area.
a much shorter
people now an¬
winding up this neces¬ ticipate, both military and home
sarily abbreviated and sketchy civilian
requirements
may
be
survey, note should be taken of filled.
What then?
Then, once
the accelerated tempo of economic
again, export orders will be essen¬
development and buying demand tial to full-scale profitable em¬
American products, coupled with
in our own U. S. territories and
ployment of factories and labor.
In Eastern Europe, only Yugo¬
the firm insistence of our friends
possessions, especially Ala s k a , The wise, qualified export exec¬
slavia, which bought $42 million
south of the border that they be
Hawaii and Puerto Rico.
High utive will study and prepare now
of U. S. exports in 1950, is likely ^
supplied with merchandise now,
level sales to those growing dollar the markets which will take
up
to show any increase in dollarnot frozen dollar credits, in return
markets will be sustained.
Sig¬ the slack when military produc¬
volume.:•-y'l y
Y.,•"
■; ,■
for their increasing shipments to
nificant, too, is the trend towards tion slides.
us, can only mean that any shiftY. Asia-Oceania
manufacturing license agreements
in Latin American trade will be ■
and similar arrangements to pro¬
Japan is likely to grow in stat¬
on the upside. Mexico, Cuba," Rrawith c. w. Hail
duce, package, service and dis¬
,
seems, our ex¬
new
'
1
in trade across our northern
Next
shooting
can
.
further two-way expan¬
coverage
ail-out
ed.
;
financed by ECA, U. -S.
exports to Europe ran close to
$3 billion, against imports of only
$L4 billion. Considering that last
September we appropriated over
Germany, France, Italy, Switzer¬
land, Belgium, the Netherlands,
from the Scandinavia and other European
standpoint of private trade, is markets. Spain, which took less
America. In 1950, we bought
than $45 million of U. S. exports
; lore than $3 billion from Latin last year, may become a some-,
America—24% above any previ¬ what more important
customer,
ous year in history—and we sold
because of U. S. Government fi¬
<; bout
$2.8 billion to the other nancial aid and possibly heavier
American Republics.
This year, shipments of Spanish products to
our
even
greater need for Latin this country.
w
,
based
the premise
that
«
Canadian .import
in
on
border.
countries must
on
their
year,
broad-scale
count
States
amd
'
1
dollar
production, and with pres- haps little likelihood of a com¬
development of mensurate increase in our imports
Canada's resources, we can surely of
European goods, leaving an un¬
ent
the
of
grams
Last
them, but the
freely from the dollars to, buy
Already many export Western Hemisphere and other
managers report
substantial in¬ traditionally American markets
crease
in South African orders will continue to receive a major
arid look for even greater activity share of our private commercial
In the period just
in that market.
Liberia and the shipments.
it will
be increasingly
Belgian
Congo
are
two
other ahead,
to
apportion available
African markets with wnich our difficult
trade will probably increase.
supplies on the basis of the pres¬
ent and potential value of each
Except for such items as. trans¬
customer country, yet the export
portation equipment and
other
American snecialties. t^ade trends manager's future "performance
record" may be significantly in¬
in the Middle East indicate a re¬
fluenced by the judgment and
turn, to the prewar pattern of
foresight
exercised in meeting
major dependence on Europe for
this
problem.
This emergency
both imports and exports.
These
situation, we can be sure, is a
are
highly competitive, difficult
period of • opportunity and chal¬
markets ..for the average Amer¬
lenge; Certainly it is no time for
ican exporter, yet because of their
buying
and
iense
overseas
of
pro¬
United
obligations.
company standpoint,
desire is to extend equitable
treatment to valued customers: in
as
leading
our
Far
Eastern
customer
missions
of
will
ECA
(Special to The Financial Chronicle).
f
PORTLAND; Ore.—J. Theodore
areas now becoming more indus¬
Steenbergen has been added to the
trialized, this export of know- staff of 419 Southwest Stark St.
how, sometimes accompanied by
investment capital, is likely to
recently established economic
are
products within the
countries.
To * many
tribute U. S.
customer, followed by the Philip¬
pines, India and Pakistan.
The
probably
becoming so broadly distribstimulate ; business
with
Indo¬
our
national interest we wish to uted throughout that whole area
china, Thailand, B u r m a and
exchange exports for vital raw that good volume sales will be
Indonesia.
Also, ECA's new pro¬
materials and other import needs, possible with almost every coungram
in the Philippines should
and to strengthen, militarily and try.
f
•
accelerate recovery in that repub-'
economically, those countriesArgentina may be one excep- lie. Iri common
with other sterling
which are or. which we hope will.tion.to the general upswing, for,
area countries, Australia and New
be on our side. Export managers
despite its steadily improving exZealand show a disposition to
will for some time be harassed,
change position and inherent basic
open their doors wider to Amer¬
by supply shortages, government. soundness, the policies ~of ,, that
ican products.
These are pros-'
controls and many other
problems,»country's present administration
perous, sound, progressive coun¬
but tiieir resourcefulness will aid. are so
unpredictable that few ex^ tries with which
every
export
them in overcoming most of these
porters here, or importers in Armanager will do well to maintain
handicaps, and export volume will. gentina, feel safe in planning for
as close contract as he can.
surely be sustained at a high level early broad-scale business expanduring and well beyond 1951. Al- sion. Colombia is said to be toy.
With Goodbody Co.
the
Usually
further '.<■ increase.
,
end-result is beneficial to all concernedi
•
'
,
•
•To
summarize,
it
^
.
_
Conclusion
.v,v
that, though the rearmament pro¬
gram and the related forces now
at
work must inevitably
bring
some distortions and dislocations
to existing market patterns, the
likely
is
effect
major
accentuation lof
to
be
an
both
trade
our
DETROIT, Mich.
Arthur. D.
Goodbody & Co.,
Penobscot Building.
Rodeckee is with
clear
seems
(Special to The Financial Chronicle)
Join Waddell & Reed
(Special to The Financial Chronicle)
— William
Waddell &
Reed, Inc., 1012 Baltimore Avenue.
KANSAS CITY, Mo.
N.
Seelinger is with
ready, many export departments. ing with the idea of following
themselves
with
mounting. Peru's lead in removing jmport
find
order
backlogs
and
are
deeply
lengthening delivery delays. Meanwhile sales opportunities present themselves in
concerned
markets which
many
day
over
but yester-
closed—markets
were
which
restrictions,t and there's a welldefined trend towards easement of
controls
throughout Latin Amer-
ica.. From every
America
It
rates
We recommend
tion.
consistent
supplies
cultiva-
more
plan for the future.
consider that 44% of all our auto-
Against this general background,
let's quickly glance over the world
mobile and truck exports go to
Latin America, 40% of our textile
exports, 38% of all chemical ex-
fhose
to
map,
if
spot,
we
can,
ex-
ports, 30% of all machinery, and
ports are most likely to flow, and
the changes that may be indicated
30% of all iron and steel product
in
areas
towards which our
overseas
our
Western
-
«
T
market pattern.
Annt
Sf1n
tuft
that
„
than 40% of all
uWe" u°
1° rece*ve
,a Yery subof -civilian goods
stantial
share
available for export.
Canada
fiumber
U.
plier.
been
is, and will remain,
customer
one
S.-Canadian
about
evenly
and
our
sup-
trade
balanced
f.n arlnu !uV+l ° arou?
lion on both the
w
export and
Last
S
bought
more
of
our
year
:
*A
statement
Session of
Tog-ether
of New
of
by
the
at
?
the
^Canada
goods than the
Mr.
moving
on
aiization
Plan
which
became
Y
■
,
'
1
;
•
..
■
i
.
.
-
-
•
'
•
v
•
■
.
;
^
'•
•
•
Y Y- Y
•
'
•
'
■'
■y
"
.
REEVES SOUND CRAFT CORP.
at
Current Market about $1.75
efSEND FOR
and
u. S. products, including so-called
iuxury items, formerly
hibited
list,
into
on
the
the
a
OUR MEMORANDUM
of Reeves 1950 Annual Statement (just
copy
released).
pro-
Bahamas,
Barbados, British Guiana, British
Honduras, Jamaica, Leeward Islands, Trinidad and Windward Islands.
,
Europe
ECA,
having
put
'
;
\
•
.
•
•
.
•
;
the
partici-
pating European countries back
on
Gearhart, Kinnard & Otis
INCORPORATED
^
'
•
their feet
industrially, is now primarily concerned w i t h aiding
them in strengthening their de¬
fenses. Some of these countries
at
the
have been giving
Get
tition
Export Managers Club
York, Inc., New York City, March
;
the next
to
in
certain
US stiff COmpelines in Latin
the
20, 1951.
•
YY
British West Indies Trade Liber-
Annual
Hollis
3ist
v-',.
v
has
nture continent of Asia. With the
Panei
■
.
Current Market about $3
at
coun- fectiVe Jan. 1. This now permits
a^. ,.we at least limited entry-of certain
^emisP^ere'
fTlln Predicting
part of the world will,
this
y:^ CINERAMA, INC.
area, note should be taken of the
Hemisphere
■
.
Last year, more
exports.
Before
Speculation
a
as
standpoint, Latin
than onemay be. needed in the not too dis-. third of an our imports, being,
tant future. To be sure, the most apart from Canada, our nearest
urgent demands are for items now, and most dependable source of
in snort supply, but in export we essential raw materials,
lndicaalways have to look ahead and tive of its value as a customer,
market
cus¬
and restoring its balance the Sterling Area and to certain
payments
equilibrium,
the other markets which have lately
Union of South Africa is now pro¬ had to get along without our
gressively relaxing import controls products because they lacked the
while
well reach higher tptals, with per¬
-
of
strictions
rearma-
rrien t
this
meeting
January, with/ inte-
removal
considera-
do
time
same
gratipn of American-Canadian de-
1
.
near-
to
$5 billion for military assistance
to Europe, the dollar value of our
1951 shipments to that area may
1
*
1
Any attempt to preview
term
the
them
main
present
of
largely
Holds Western Hemisphere
S. traditional markets will continue to
major share of private shipments*- and warns exporters
neglect or abandon their established trade channels.
'
;.
'
"dollar shortage."
a
other
as
at
for
with
serves
the
especially to the dollar area. How¬
it will be increasingly dif¬
After reviewing geographical shifts in U.- S. export trade and
impact of rearmament program and ECA aid on overseas biisi- ;
ness, Mr. Hollis points out that there is likelihood of increased
-
United
on
ways
The out¬
Having done a noteworthy job tomers and suppliers.
look is for increased exports to
of
rebuilding its exchange ire-
Western European mainland will
strive hard to maintain exports,
Editor, Exporters' Digest &-International Trade Review
i
Africa-Middle East
petition
7
.
t Since removed except for
list.
a
prohibited
NEW YORK 5
45 NASSAU STREET
Telephone WOrth 4-3300
=
.
.
Bell Teletype NY 1-576-577
8
(1332)
The Commercial and Financial Chronicle
Commonwealth
Edison
Company—Comment—Faroll
pany, 209 South La Salle
Dealer-Broker Investment
Recommendations and Literature
It is understood that the firms
mentioned will he
send interested
parties the
to
is
able
Department
Detroit
stocks available
on
request—Francis I. du Pont & Co., 1
Wall
City Company,
Refined
Lamborn &
Cream
of
Sugar
Prices—Chart
and
Your
World
War II
areas
census—J.
Walter Thompson &
New
17, N. Y.
based
Decade of Competitive
90,
111
Gleanings
on
of America's
Due
162
top
York
brief
data
and
Mid
Company, Inc.,
memorandum
National
31
lows, earnings,
virtually every active stock on the
Curb Exchanges—single copy
$10.00;
New
Co.,
shire
a
"
and
of
in
Department
Corporation
and
;
current
a
issue
Stores,
and
a
list
a
of
"Market
brief
of
Pointers"
resume
interesting
of
is
Marine
Low
Argo
South
'
Salle
Boston
on
10, Mass.
—
Electric
&
Nassau
&
analysis of
annual
Reeves
report
Sound
5,
National
Bank
Co.,
N.
Craft
Y.
&
Also
Corp.
and
Otis, Inc., 45
available
a
copy
is
Portland—Sunmiary—Pacific
of
In
Investment
377;
in
Outing
Country Club, Oreland
(Minneapolis,
to
York
June
(New York City)
Annual Dinner at the
Canada)
of
and
Thereafter, he left government
to engage in finance
-
teaching
Club
Association
ties
Corporation,
annual
trusts
portfolio consisted
served that labor institution
its
as
investment consultant.
Friedman's
Mr.
cluded
New
lecturing
York
Commerce
teaching in¬
finance at the
on
School of
School
University
and
the
New
for Social Research.
Since
1938, he testified pro¬
fusely before Congressional com¬
mittees
on
questions concerned
with
railroading,
banking
and
taxation.
the
In
latter
the
he
field
outstanding exponent of
opinion seeking to repeal the
an
capital gains tax (his latest an¬
alysis of this situation appearing
in
issue
week's
last
Mr.
full
Friedman's
the
of
length
-
"American Prob¬
Reconstruction"
of
(1920);
the
and
(1918);
Era"
New
and Reconstruc¬
tion in Europe" (1919); "Interna¬
tional Finance and Its Reorgani¬
zation"
(1920); and "Russia in
"Labor
Transition" (1932).
Friedman
leaves
was
his
unmarried.
mother,
Mrs.
Miriam D. Friedman, three broth¬
Samuel, Abraham and Dr. E.
Friedman,
Professor
of
David
Neurology at, the New York Uni¬
versity College of Medicine, and
a
sister, Mrs. Paul Koenigsberg.
To
its
them
the "Chronicle"
extends
deep sympathy.
National
With Talcott, Potter
(Coronado Beach,
(Special
Security Traders
Oct. 12, 1951
Dallas
As¬
to
The
Financial
Chronicle)
CHICAGO, 111.—Harry A White
has been added to the staff of
Talcott,
Salle
Potter &
Co., 231
South
Street.
(Dallas, Tex.)
Bond
Club
annual
Col¬
Day outing.
McDonald Moore Adds
(Special to The Financial Chronicle)
Nov. 25-30, 1951
Beach, Fla.)
(Hollywood
.
Investment Bankers Association
-
I
Calif.)
umbus
Convention
~
of the earli¬
largely
of foreign issues. / He, with Sid¬
ney Hillman, helped to organize
the
Amalgamated
Bank, and
La
Dealers Associa¬
Jasper Park Lodge.
one
investment
American
est
;
sociation Convention opens at Co¬
ronado Hotel.
^
Canada
servedas
he
1920s
the
Vice-
In
writing.
and
President of the Overseas Securi¬
Michigan summer
■
Sept. 30, 1951
Memorial Day outing.
tion
of Detroit
Traders
(Dallas, Tex.)
Bond
world
of
outing at the Plum Hollow Coun¬
Country Club of Maryland.
Dallas
(Detroit, Mich.)
26, 1951
Securities
try Club.
sociation annual Spring outing at
Investment
Louis
Security Traders As¬
sociation Annual Outing ("Opera¬
Meeting at the Boston Yacht Club. tion Fishbite") at Gull Lake.
April 13, 1951
studies
in
engaged
Mr.
22-24, 1951
Twin City
Boston Investment Club Dinner
Depart¬
State
U. S.
the
ment, during which period he was
ers,
April 9, 1951 (Boston, Mass.)
;
378
Cleveland—Denver—Detroit—Philadelphia—Pittsburgh—St.
1919-1920, he was associated
Trade Adviser's
office
He
June 11-14, 1951 (Jasper
Park,
Trinity Place, New York 6, N. Y.
wires
Summer
Pa.
June
the
1-376;
Traders Association
Dinner at the Manufacturer!
Golf and
Field
(
Teletype NY
In
with the Foreign
"Chronicle").
(Philadelphia, Pa.)
15, 1951
Philadelphia
and
EVENTS
Baltimore Security Traders As¬
Security Dealers Association
Private
comment—Eastman,
Investment
COMING
May 18, 1951 (Baltimore, Md.)
Tungsten Mining Corp.)
2-2400.
specializing in the sta¬
of
government
bond
prices; and also functioned as a
consulting economist for the.
Treasury Department.
man,
bilization
books included:
Security Traders Association oi
Troster, Singer & Co.
HA
Seattle 14, Wash.
Building,
June
continued
he
war
government service as a dollar-a-
was
New York 6, N. Y.
May 30, 1951
Telephone:
Lewis
an
of their
Active Market
Y.
H.
Minn.)
HAILE MINES
Members: N.
'»
Co., 15 Broad Street, New York 5, N. Y.
Waldorf-Astoria Hotel.
69.5%
*
Corp.—Follow-up
Electric
39
New
74
of
Defense.
in
National
of
the
lems
(just released).
(Owns
Also available is
including finan¬
Roofing Company, Inc., Stratford, Conn.
Ltd.—Memorandum—Smith, Barney
York
After
"America
Investment
Gas
New
economist,
statistician and
During the First World
War he was a statistician for the
War
Industries
Board
and
the
whose
Company, Exchange
he
us
respected as
author.
early
Lerner &
—
Westingliouse Electric—Review—Ira Haupt & Co., Ill Broad¬
way,
Inc.—Analysis—Gearhart, Kinnard
Street,
Devon¬
t
World Airlines, Inc.—Special v/eview—John
Co., 63 Wall Street, New York 5, N. Y.
Dillon
& Co., 1342
Company—Study—H. M. Byllesby
Company, Inc., 1500 Chestnut Street, Philadelphia, Pa.
Cinerama,
Co.,
Gear Grinding Machine Co. and on Seneca
Co., 14 Wall Street, New York 5, N. Y.
and
r
Street, New York 5, N. Y.
Westingliouse
111.
Devices, Inc.—Analysis—Peter Morgan &
Co., 31 Nassau
Street, New York 5, N. Y.
Central
&
161
Inc.,
Card memorandum
Street, Chicago 3,
British American Oil Co.
Haupt
Co.-r-Analysis—Halle & Stieglitz,
Street, New York 5, N. Y. '
States
To
known and
best
wel¬
fare.
Elisha M. Friedman
was
com-
1
service
Gannon,
&
serv¬
and
petroleum resources.
Co.—Analysis—Ira
Cement Company
Northwest
Audio
&
Electric
&
Y.
N.
5,
Roofing Company, Inc.—Annual report
United
Bridgeport Brass—Annual
report—Bridgeport Brass Company,
Bridgeport 2, Conn.
,
York
*
Corporation—Analysis—Barclay
La
Power—Memorandum—Josepthal
New
Co.—Bulletin—May
Street,
Wall
&
Street, Philadelphia 7* Pa.
Oil
Co.
Trans
General—Analysis—Newburger
*
&
cial statements—Tilo
in War and Peace—Analysis—Bache &
Co., 36 Wall
Street, New York 5, N. Y.
*
Water
General
Wall
Tilo
Stocks,
list of stocks with High Yield.
Walnut
Insurance
Broadway,
memorandum
1
study
Speculative Merits of Common Stock
Warrants—Sidney Fried
—$2.00—Dept. C, R. H. M. Associates, 220 Fifth Avenue,
New York 1, N. Y.—Or send for
free descriptive folder.
Utility Industry in
Life
Socony-Vacumm Oil Company—Analysis—G. H. Walker & Co.,
4 Television
•;
related
of
Car Heating and Lighting Co.—Report—Eisele King,
Libaire, Stout & Co., 50 Broadway, New York 4, N. Y. Also
a report on Seaboard and Western Airlines.
Midland
Priced
Company—Table
Insurance
available is
Also
a
Fire
Safety
Building, Wilmington 99, Del.
available
G.
Street, Boston 9, Mass. Also available are analyses of Yerney
Corp., Simplex Paper, U. S. Thermo Control, Maine Central
Railroad, Sanitary Products and Air Products.
Company, Nem¬
M du Pont & Co., 1 Wall Street, New York 5, N. Y.
Michigan—Analysis—J.
of
Rudolph Wurlitzer Co.—Analysis—Raymond & Co., 148 State
or /f
Sheltered Stocks—30 selected utilities which
appear in position
to perform relatively better in a
reactionary period—Francis
,
memo¬
Robertshaw-Fulton Controls
f
I
Stocks—Analysis—Laird
a
Falls Machine Co.
Timing, v?
Huron, Mich.
Radio-Television
Also available is
Co., 10 Post Office Square, Boston 9, Mass.
52
formula for long-term operation—$5.00 for four
months,
for next two discussions—Baker's Investment
public
year
Company
t ion,
uc a
m u n a
Council
Broadway, New York 6, N. Y.
Riverside
4, New York.
ours
120
Ill
11-year period—
Port
General
Portland
Averages, both
$1.00
a
Company, Incorporated, 37 Wall Street, New York
Hampshire
ticut
National Quotation
Bureau, Inc., 46 Front Street, New York
v."
and
prices—The First Boston Corporation, 100 Broadway, New
York 5, N. Y.
Also available is a memorandum on Connec¬
Preferreds
Forecasting—Trend-following
Trailmobile Company
on
Higgins, Inc.
5, N. Y.
Over-the-Counter Index—Booklet
showing an up-to-date com¬
parison between the 30 listed industrial stocks used in the
Dow-Jones Averages and the 35 over-the-counter industrial
Without
bulletin
a
Utilities
Richardson
Investing
231
on
Keyes Fibre Co.
Pennsylvania
stocks used in the National Quotation
Bureau
to yield and market
performance over an
ed
an
Inc.—Bulletin—Republic Investment
South La Salle Street, Chicago 4, 111.
Street, Boston 9, Mass.
on
White &
request).
Progressive
Milk
National
—Sidney Fried—R. H. M. Associates, Dept. C, 220 Fifth
Avenue, New York 1, N. Y.—$2.00 (or free descriptive folder
as
Industries.
i cs,
e c o no m
Union
Co.,
Company, Inc.—Analysis—J. B. Maguire & Co., Inc.,
randum
options—Thomas, Haab & Botts, 50 Broadway, New York 4,
&
banking,
ice
&
Airlines,
Also available is
New York.
on
Continent
ising
compr
business,
on
on
Speculation in Convertible Bonds
Co.,
Steel
Corp.—Memorandum—Naumqn, McFawn &
Co., Ford Building, Detroit 26, Mich.
Also available is a
"Information Please!"—Brochure
explaining about put-and-call
Investment &
&
McLouth
yearly (6 revised issues) $50.00—special offer of three edi¬
tions of Graphic
Stocks, 1924 through 1935; 1936 through 1947
and up-to-date current
edition, all for $25.00—F. W. Stephens,
15 William
Street, New York 5, N'. Y.
•
report—Loewi
Co.—Memorandum—Fulton, Reid
Commerce Building, Cleveland 14, Ohio.
Woodall
partici¬
pated actively
in many fields*
Company—1950 annual report—Public Relations De¬
on
Fried¬
Mr.
man
partment, Lion Oil Company, El Dorado, Ark.
Mont
Stock
Oil
memorandum
with
Company—Special
an
operation.
Corporation,
Street, Milwaukee 2, Wis.
Magnavox
York
New
East Mason
Lion
and Negotiated Debt
capitalizations, volume
•,
Chemical
fol-
25
lowing
Lines, Inc.
Radios—Report available to dealers—Wagenseller &
Durst, Inc., 626 South Spring Street, Los Angeles 14, Calif.
Laboratories, South Bay Consolidated,
Water Service, American
Tobacco, and Sun Life
—Kalb, Voorhis & Co., 25 Broad Street, New York 4, N. Y.'
Graphic Stocks—January issue contains
large, clear reproduc¬
tions of 1,001 charts
complete with dividend records for the
full year of
1950, showing monthly highs,
New
Air
March
Hoffman
preliminary figures from the 1950
Co., 420 Levington Avenue,
Securities—Market review
on
Stinnes,
225
Financing—Study
Co. Inc., 123 South La Salle
Street, Chi¬
—Halsey, Stuart &
cago
of
the
and
Market, The—Analysis
marketing
York
Ilarshaw
prices during
postwar periods—
Co., 99 Wall Street, New York 5, N. Y.
I
United
on
New
City
York
Corp.—Information—Peters, Write, & ChristenInc., 728 Seventeenth Street, Denver 2, Colo.
sen,
Vancouver, B. C., Canada.
War
bulletin
a
in
died
He
Friedman.
M.
Golden Cycle
Canadian Market
Trends—Brochure—Western
Ltd., 544 Howe Street,
World
available is
Fresniilo Company—Report—New York Hanseatic
120 Broadway, New York 5, N. Y.
bank
Street, New York 5, N. Y.
Comparative
deepest regret the passing of one
of its oldest contributors, Elisha
Company—Bulletin—Walston,
Goodwin, 35 Wall Street, New York 5, N. Y.
&
with the
The "Chronicle" notes
Emerson Electric Manufacturing
selected
of
Elisha M. Friedman
Corp.
Manufacturing Co.—Analysis—DePasquale
Co., 25 Broad Street, New York 4, N. Y.
pleased
following literature:
Offerings—Recent price record
of
Com¬
Hardware
Also
Stock
Stores
&
Street, Chicago 4, 111. Also avail¬
the earnings outlook for National
Creamery Package Manufacturing Co.—Analysis—Elworthy &
Co., Ill Sutter Street, San Francisco 4, Calif.
Hoffman
Bank
discussion
a
1931
Thursday, March 29,
;.
.
at
Annual Convention at the Holly¬
wood Beach Hotel. •;.< =.» ''
■
*
-
DETROIT, Mich.—Thaddeus W.
Obuchowski has been added to the
staff
of
McDonald-Moore
&
Co.,
Building, members
the Detroit Stock Exchange.
Penobscot
of
,j
to"
Volume 173 ^Number"4998
Tht Commercial+and'Financial Chronicle
.-v;
By R. A. WEAVER*
Enamel Corporation,.Cleveland, Ohio
Chairman of Board, Ferro
Weaver, in outlining prospects of heavy consumer goods '
Mr.
particularly, those of his own company,
favorable factors, the growing population and
additional housing, with more families using labor-saving
home appliances. Reveals growth of business and earnings of
Ferro Enamel Corporation and its foreign subsidiaries.
industry and,
-
points out,
more
cation of
the
heard
glass to steel—and I am
going to skip all of that this time.
I
going to
am
idly.
they
I
to
esting
the assumption
things
would
the
about
first
the
on this
little ash tray
place,
Robert
Weaver
A.
that you
•
the
stampings
English
the
and
He is
me.
We have
of
my
policy in our company
a
relatives in the company, so
no
the next best
did
I
them
customer of mine.
a
boy as
There is
thing—I got
say
it is
here
I
chance to
have
I
known
come
back and talk to
I was asked to talk on
them.
a
of these men in the
am
glad to have a
many
and
past
talk
real pleasure to
a
because
good
a
the
of
what you call the white goods
industry, but we call the home
appliance industry in Ferro.
Some people feel there is a weak¬
long-term position
and
short-
involved in Ferro being con¬
ness
with
nected
appliance
home
the
industry, but I think I can con¬
vince you that that is not so.
is
Here
few
a
story, in just a very
to tell you what I
the home appliance
words,
think
about
and about Ferro.
A
young man went to his bank to
industry
$100,000 to build an addi¬
and to expand his business.
borrow
tion
He had a nice little
boy
a
was
he
After
told
business.
banker
the
He
character.
good
of
his
story, the banker said, "Well, now,
young
nice young
have to have a state¬
you.
We certainly
you're
man,
man,
but we
ment
from
couldn't
without
loan
a
that
a
much
money
The young
statement."
steel has been cut
will be on April 1,
or
will
probably be an¬
June 1, or a
total of 30%, which is consider¬
ably below what we had antici¬
10%
pated;
cut
by
I think
so
figure of $30
our
million is conservative.
To show you
down,
how this is broken
have about 25 divisions
we
subsidiaries
or
which
on
keep
we
each
know
month, how those divisions
that
books;
out. Here
of
we
come
few of them:
a
(porcelain enamel) end
business, in Cleveland and
our
Los
is,
are
The frit
lot of informa¬
tion about the company and so I
wouldn't miss anything; I wrote
down some of the things.
Let me
quite
that perhaps steel
that much.
Well,
cut
know,
there
other
customer.
a
be
you
and
in
business
enameled
he
Boston
for
our
My son is in
enamel
jobbing
have,
from
came
company.
as
only 20%,
company.
In
quarter.
drop for the last nine months, on
inter¬
the
of
first
fp
talk
of
you
the
in
divisions
some
and I
just
you,
would
like to
.
.
about
will
«
be
Angeles
and
Nashville,
to about $9 million last
amounted
We
realize that
some
ing ahead.
We have thought this
people are buy¬
good many times in the past—
yet our customers are not loaded
with inventories.
There are a
about them in
more
Then
little while
a
approximately $8,800,000.
were
we
have Tuttle &
Kift, Inc.,
in
Chicago, which makes electrical
equipment for ranges—they make
the heating units, those curlicue
things that you see on top of
electric ranges; they make the
switches; they make heating units
for
hot
water tanks;
they also
make what they call industrial
which
units
of
variety
that
the
are
could
do
they
did
figures
of
refrigerators
in
stor¬
the time
build re¬
because the sales
season
starts along in the latter
part of March, April and May,
and then they move out pretty
fast.
Always in the past they
have
built
refrigerators during
age, but this is always
the year when they
of
frigerators,
the
wintertime and
sold
them in
the
spring and in the fall.
Last year, Ferro sales were $33
*A
stenographic report of
Weaver
tomers'
before
the
a
talk by Mr.
Association
of
Cus¬
Brokers, New York City, March
6, 1951.
about
year
Those
1949.
in
the
approximately
are
pattern for the rest of the home
appliance industry.
As
to
the
long
range,
here is
good many of the experts
think.
Naturally, Ferro will be
affected by the appliance demand,
what
a
and here are some
ing
factors affect-
However, our
that demand.
diversification
program
best
of
make
colors
that
that go on
the
go
steel,
of
some
curtains that
and
also sold to
are
the
ordinary or organic colors.
field
is
j?he
to
.
Teoresrat
for
expenditures
sumer
,
'
b
ing
since 1940.
The growth in the se home
appliances has been fantastic,
Look at the history of the refrigerator business and note that
in 1927 they shipped only 375,000
boxes and that the sales have been
steadily increasing until, this
year- they shiPPed over 6,000,000.
units
have been
increasfng
^"iQaTha^'sldf
a
at a greater
population;
for
water heaters, in 1935, had shipexample,
population
increased ments of 200,Q00—last year they
15% between 1940 and 1950, while shipped 2,300,000. This gives you
the
than
rate
the number of households jumped some
25%.
idea of-the growth of the
home appliance industry,
too, family incomes have A word about the automatic
substantially since 1940, dishwasher—which, by the way,
;
Then,
growh
and it is in this group where they
may
They
terrific amount of hot
As the dishwashfer sales
there will be more and
more °f the hot water tanks gold,
•
Continued on page 26
usest a
decreased
has
group
those in
1940, while
60%
since
the upper
offer to sell
an
or a
solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
$40,000,000
Consumers Power
First Mortgage
plants, for
any
Bonds, 3Fs% Series due 1981
potteries, and for tile plants, did
Dated
$1,200,000.
we
have
division
enamel
which
Due
April 1,1951
April 1,1981
engi¬
second
a
Price 101.467% and accrued interest
The
makes
Prospectus
may
be obtained in
any
State
tn
which this announcement is circulatedfrom only such
lawfully offer these securities in such State.
of the undersigned and other dealers as may
organic finishes that did about one
million dollars.
In
glaze,
which is the sort of
thing
you
find
cups
and
so
on ordinary tea
forth—that shiny
stuff you see is a glaze—we did
over a million in that department,
and in the color oxide—this black
finish
with
a
get
red
a
this
on
ash
tray
black oxide,
is
yel¬
low one—in fact, I
2,000
the
the
think we have
colors.
And, by
(indicating) is a
advertisement
showing
different
way,
this
current
actual
colors
colors
of
some
G.
HALLGARTEN
division, as I said, did a little
over a million, and the color di¬
vision did a little over a million.
DICK 4 MERLE-SMITH
LADENBURG, THALMANN & CO.
& CO.
L. F. ROTHSCHILD & CO.
FENN &, CO.
(INCORPORATED)
SALOMON
GREGORY A SON
WM.
March 29, 1951.
& CO.
HIRSCH
& CO.
INCORPORATED
INCORPORATED
IRA HAUPT & CO.
WERTHEIM
BROS. &, HUTZLER
STROUD & COMPANY
new
out for dishes or
for the glaze on them.
That glaze
we\got
*
INCORPORATED
PHELPS,
OTIS & CO.
ROLLINS 4. CO.
BLAIR,
BECKER & CO.
INCORPORATED
done
but you can
one, a green one, a
HALSEY, STUART 4 CO. INC.
A.
these
^ms has increased over 100%
say
companies
approximately
kilns for brick
..
units
heating
$2,200,000 last year.
Our Allied
Engineering Company, which
makes
.
d
The
The two engineering
did
These
us
,
~
0 e
fpr ap_ Then look at the history of elecyjt g,
fa t. th . trie water heaters, of which in
g" the pas,a f'w Vea?s 1935 only 70'000 were sold: yet
t
,,
This announcement is not
of the field.
own
to
nortant
day for Frigidaire to defrost
refrigerators. When you sell a
heating unit in a refrigerator, that
certainly shows the broad scope
we
nnn.ai.
J;l^d *n ™ith the P>pulation is
^ number of families or house-
a
that
**
,T_
wide
a
different
my friends
to explain the
400
pp
*
spend their money. The number water.
shower of families in the lowest income So up,
You
done with the
were
rooiLncr/ndustrv
those
way,
pottery,
industry.
aplastic
remember
the
into
for
way
that
breadth
in
by
tioned—and,
of
some
that
we
sold
places
tell
I
uses.
a
number
this
they
what
expenditures for consumer durable goods are two-thirds larger
than they were in 1939. ..They
have jumped from $51 per person
to $8*3 per person in terms of 1939
prices,
Spend,,1£ for Appliances
We made another .calculation
to illustrate this Point by adding
up the retail sales value of ma^or
appliances, and have taken that
setatft**?
SMinVehtt
income. This showed the con-
«
—
—
<■
story.
[0
™upld
is builddivided among those three
ing up strength for us in the other
plants. The sales of our foreign
subsidiaries
and I will speak fields like the plastic I just men-
a
February.
min-
few
the 1935-39 level, the
per capita personal or real income
has increased almost 40% since
1940. Personal savings have increased 244% since 1940.
We also find that per capita
to
P™e
The
relative growth from 1940 to 1950
was much greater than the popudation experts had expected.
The
addition of 20,000,000 people since
year,
Then
best
the
a
war-stimulated
the
growth
When adjusted for
still gone up.
1940, compared to an increase of
9,000,000 in the previous decade,
good many of my friends. I am a broadens the sales base for all
director of the American Stove consumer
products.
There has
Company and
also in another been some postwar letdown in
company, both of which make gas
the rate of population increase,
ranges.
I also talked with some but the Korean war has again
friends in the refrigerator busi- generated a new upward trend.
ness.
The gas range people ex-.
L
t
th
Censuq Bureau
pect a drop of about 24%, but that Gstjmatpd t'h a t hv 1960
there
is 24% from a very high figure
would
be
close
no'oooOOO
that they have ever had
The
electrical range people and the
bec£use o£ th factor just ^en.
refrigerator people expect a drop t;nnpH
fi(,lir<i ,..411
nmhahlv
"ut 33%, but last year they
did 33% better than the year beith details like thi
but
fore, so if they do what they think '
have t0
t this backg;ound
they are going to do—and they are .
kpIipvp
mp
when
T
tell
vou
ahead of that schedule to date- what I think about the home
minute and then
he said, "Well, I'll give you the neering company that builds
continuous furnaces for the en¬
statement right now.
I'm optim¬
trade,
and
they
did
istic."
That is, briefly, how I feel ameling
about a million.
about this home appliance indus¬
Our
chemical
company,
the
try.
Ferro Chemical Company, which
For the short range, Ferro had
makes
driers for paints and
its best January in the history of
stabilizers for plastics, did $1,the company this year.
The Feb¬
600,000.
We have a synthetic
ruary figures are not out, but it
thought
man
in
Ferro
with incomes of over
$5*000; have i n c r e a s^e
300%.
These are the people who want
every
labor-saving; device' they
can get.
In 1949, about 40% of
the families had incomes of over
$3,000, compared with 12% in
1940. While it is true that prices
0bvious trends"have increased, real incomes have
Gne of the most
miliar' with
t
group,
influencing the appliance market
ig population.
Everyone is fapopulation
.
will give you more informa-
tion
Well, actually, we will be con¬
siderably better than we did last
year.
We took, and we thought
we were quite conservative, a 50%
available
(1333)
V
which was the biggest
year in our history.
This year, utes, particularly about our war
work, but here are a few things
we expect our minimum sales to
about the home appliance business
be $30
million.
We arrived at
that by taking the first quarter currently: I have checked with a
million,
of
cause
are
"
did $170,000, but is growing rap-
a
many
* f
Vf»
They did about $618,000. We are
starting a new division, providing
clay for various industries, which
good, of last year, and assuming that we
the. would do as well with our home
figures be¬ appliance friends and in our other
skip
•
^We 'had a business of^supplies, Jaded,
Well, t h e s e inorganic
justodds and rends,'halfa colors' or 'mineral; colors of birrs
million * dollars,
and
we v have don't s fade,and" our --business has
another rxompany;,.r a lied the grown very steadily.* We are curCeramic S u p p i y ..Company, at rently increasing the-size of that
CrooksVille, : Ohio,
that
makes department.
As I say, we are
saggers that go in the continuous diversifying in fields such as plaskilns for both pottery and for tile, tic,■. chemical and electrical.
as
story of
how enamel is made—the appli¬
have
You
-AJ
KEAN, TAYLOR & CO.
E. POLLOCK & CO.,
INC.
A. M. KIDDER & CO.
STERN BROTHERS & CO.
>
F «n,y
<
N'ttHklfr
Volume 173
» *
.
Tfce Commercial 'ond^Fiiumcial Chronicle
-*^r
r-
V>We bad
%*
business of/supplies, . faded.
a
t h e s e: inorganic:
Well,
• -
gust^odds^and't:ndsrvOf;'half-:i a colors*, or vmineral; colors Of ours
* we ?have
c a 11 e d
the
..Company,at
Crooksville, ; Ohio,
that
makes
saggers that go,in the continuous
Ceramic
Ohio
consumer goods
poHkobriy, those of his own company,
favoeaWt factors, the (rowing population and
oodoMOf prospect! of heavy
industry io4 •or#
points out, as
addition! hoossof.
with
families using labor-saving
wort
opptioocoa. Reveals growth of business and earnings of
Ferro loamtf Corporatsoo and its foreign subsidiaries.
home
million,
/ You have heard the story ©f
enamel is made--the appli¬
dollars,
4
and
•<,
another*/company,
t«fi Enamel Corporation, Cleveland,
Mr. Wetftf, It
group,
with incomes- of over
$5,000; have increased' 300%.
These are the people who want
don'tc fade;/ and our ^business has
labor-saving device they
grown very steadily. We are cur- every
In 1949, about 40% of
rently increasing the size of that can get.
department.
As I • say, we are the families had incomes of over
diversifying infields such as plas- $3,000, compared with 12% in
1940.
While it is true that prices
kilns for both pottery and for tile. ,tic, chemical and electrical.
They did about $618,000.
We are . Qne 0f the most obvious trends have increased, real incomes have
still gone up.
When adjusted for
starting a new division, providing 4 influencing the appliance market
price to the 1935-39 level, the
^lay^nnn10uS.indUStrle-'
whlch\is
population.
Everyone
is
fadid $170,000, but is growing rap- miiiar with
the : war-stimulated > per capita personal or real income
million
If K. A, WEAVER*
Chairman of
•
(1333)
*
which
biggest
the
was
ldly«
tion
y
'
will
I
i
Su p p
give
you
more
in
Ferro
about
informamin-
few
a
40%
almost
increased
has
population
growth story.
The
relative growth from 1940 to 1950
was much greater than the popu-
since
in¬
savings have
creased 244% since 1940.
Personal
1940.
We also find that per capita
This year, utes, particularly about our war Nation experts had expected. The
work, but here are a few things addition of 20,000,000 people since expenditures for consumer dur¬
about the home appliance business 1940, compared to an increase of able goods are two-thirds larger
be $30 million.
We arrived at
going to skip all ©f ttiat this time.
currently: I have checked with a 9,000,000 in the previous decade, than they were in 1939. . They
I am going to that by taking the first quarter
have jumped from $51 per person
skip «
good of last year and assuming that we good many of my friends. I am a broadens the sales base for all to
$8-3 per person in terms of 1939
director of the American Stove consumer
products.
There has
we
glass t© steel--and 1 am
cation of
figures be*
do
well with our home
as
Company
quarter.
company,
first
the
in
divisions
Well, actually, we will be con¬
siderably better than we did last
» suld
fust year.
We took, and we thought
l*fc# to talk to we were quite conservative, a 50%
available
lit?
t<»
I
and
vow.
and also in another
both of which make gas
I also talked with some
in the refrigerator busi-
appliance friends and in our other
they
tew-**
history.
our
expect our minimum sales to
would
the
#f
mjwjy
in
year
how
ranges.
friends
The
ness.
people ex-*
range
gas
been some postwar letdown in prices.
the rate of population increase,
More Spending for Appliances
but the Korean war has again
We
made
another calculation
generated a new upward trend,
Last
Census
the
year>
Bureau
about
24%, but that estimated that by 1960, there
very high figure WQuld
be
close
(0 i70,000,000
^GCo
^ I?*>
is
24% from
illustrate
up
the retail sales value of
a
drop for the last nine months, on
that they have ever had.
The pe0pie jn the United States, but
the assumption that perhaps steel
Well, electneal range people and the because of the factor just meneotrng
things would be cut that much.
about
the 81 you know, steel has been cut refrigerator people expect a drop tioned, this figure will probably
only 20%, or will be on April 1, ^a£out 33%,
year
be larger
j don,t like to bore
In the first and there will probably be an¬ did 33 % better than the year be- yQu witb details like this, but
fore, so if they do what they think
have to get this background
other
10%
cut
by
June
1,
or
a
fW*. im this
Robert A.
believe me when I tell you
Mu* **9i tray total of 30%, which is consider¬ they are going to do—and they are
ahead of that schedule to date
what I think about the home
thai *•**«* have, ably below what we had antici¬
they could do this year about
the
stamping* torn* tiwn ©ur pated; so I think our figure of $30
what
they 7 did in 1949.
Those
Tied in with the population is
English company
?4v *©*"i is in million is conservative.
figures are approximately the
the. jobbing ena«*rt k«*«»nrw In
To show you how this is broken
or
Boston
and he
them down, we have about 25 divisions pattern for the rest of the home the number
appliance industry.
hol?s.
is
more imfor me.
He 1# a cw4m*** *d mine. or subsidiaries on which we keep
portant to us.
These represent
As to the long range, here is
the actual buying units for apWe have a painty in «w io.mpa.ny books;
that is, we know each
e experts ponces, and it is a fact • that
of no relatives in lb#
go month, how those divisions come what a good many of
I did the neat t«*t t?,n # -1 got out. Here are a few of them:
Naturally, Ferro will b famiiies f0r the past few years
affected by the appliance demand, bave been increasing at a greater
my boy as a r*»*?^wr
The frit (porcelain enamel) end
and
here
are some factors affectrate
than
the
population; for
There is quit* a M ©f Inform** ©f our business, in Cleveland and
tion about the
#r.<i %o | Los
Angeles
and
Nashville, ing that demand.
However, our example,
population increased
wouldn't rnlif
f. wrote amounted to about $9 million last diversification program is build- 15% between 1940 and 1950, while
c»f
>«*n
*
some
the
f
inter*
they
but last
^plimWiAdustry;
_
of families
which
really
L*t me year, divided among those three
to talk plants. The sales of our foreign
down some of the
it is a real j
say
I
because
here
km*wn
M*#
it
of them mtn in the
past and I am ft 1*4 b* have a
chance to corre luwk and talk to
them.
I was a*hrd to talk on the
short- and tonf«teim t«»KtU"n ©f
what you call the while goods
industry, but *» oil the home
appliance i n 4 © »t r y in ferro.
Some people feci there Is s weak*
good
marv
involved In f « r» te-ing eon*
ness
industry, but f
words,
few
equipment for ranges—they make
the heating units, those curlicue
things that you see on top of
ranges;
for
water
hot
which
fail
variety
you
what
1
imm appliance
up
strength for us in the other
colors
that
the
go
that
on
aplastic
remember
of
tell
I
uses.
of
that
make
steel, are also sold to
some
the
of
and it is in this group where
may
or
organic colors.
boy
a
was
***-t
©f
told
he
After
the
character.
banker
his
a
my
own
This announcement is not an
friends
heating
400
The
mwh money
without a statement ** The young
man
thought * minute and then
he said, -Well, III give you the
statement right new,
I'm optim¬
istic."
That. & brtefiy, how I feel
that
about this home
appliance indus¬
try.
have
a
second
about
will
be
they
did
company,
the
and
trade,
chemical
Our
beat. February*
in 1927
boxes and that the sales
have been
increasing until, this
year, they shipped over 6,000,000.
Then look at the history of elec¬
tric water heaters, of which in
steadily
1935
70,000 were sold;' yet
million were sold. Gas
heaters, in 1935, had ship¬
only
last year a
water
of
ments
200,000—last year they
This gives you
shipped 2,300,000.
idea
home
appliance
of
A
growth of the
the
some.
industry./'
the
about
word
dishwasher—which,
uses
t
a
terrific
the
water.
As
go
there
up,
of
by
automatic
the
dishwasher
Continued
on
page
any
Bonds, 3H% Series due 1981
Due April 1,1981
Price 101.467% and
The
organic finishes that did about one
people are buy¬
million dollars.
ing ahead.
We have thought this
In glaze, which is the sort of
a good many time* in the pastthing you find on ordinary tea
yet our customer# are not loaded
cups
and so forth—that shiny
with invent©* ic*.
There are a
stuff you see is a glaze—we did
number
Prospectus
may
be obtained in any State in which
!
of the undersigned and other
We
accrued interest '
this announcement is circulatedfrom only such
dealers as may lawfully offer these
securities in such State.
realize that some
of
refrigerators
but this t* ah*»ji the time
age,
the year
of
in stor¬
frigerators,
alorg
in
the latter
with
March,
then
and
fast.
the
during
wintertime and anM them in
the
spring and in the foil.
have
built
Last year,
utit$vr*ias§
Ferro sale# were $33
tomers'
1951.
below
ash
tray
is
the
different
current
the
this
way,
colors
Colors.
And, by
(indicating) is a
advertisement
actual
we
colors
got
of
showing
some
A. G.
BECKER &, CO.
HALLGARTEN
DICK A MERLE-SMITH
INCORPORATED
^
LADENBURG, THALMANN &, CO.
& CO.
PHELPS,
OTIS A CO.
ROLLINS & CO.
BLAIR,
INCORPORATED
done
black oxide, but you can
L. F. ROTHSCHILD A CO.
FENN & CO.
(INCORPORATED)
SALOMON
^
STROUD & COMPANY
GREGORY A SON
A CO.
HIRSCH & CO.
INCORPORATED
INCORPORATED
IRA HAUPT & CO.
WERTHEIM
BROS. & HUTZLER
KEAN, TAYLOR & CO.
A. M. KIDDER & CO.
new
out for dishes or
That glaze
r»*»1 «# * tuft* If Mr. division,
as I said, did a little
$*#
mt Cus¬
over a million, and the color di¬
%♦** Utf, Mtftk
vision did a little over a million.
*A strnojjraiwt*
Weaver
this
on
a
get a red one, a green one, a yel¬
low one—in fact, I think we have
April and May,
they move out pretty
2,000
AUa>s In the past they
of
part
6,
and in the color oxide—this black
when they build re¬
finish
because the sales
starts
season
million in that department,
over a
INC.
HALSEY, STUART &, CO.
WM.
POLLOCK & CO., INC.
E.
for the glaze on them.
March 29, 1951.
*
sales
be more and
the hot water tanks sold,
will
solicitation of an offer to buy these securities.
April 1, 1951
way,
of ^ hot
amount
Chemical Company, which
Ferro
the
or a
re¬
that
they shipped only 375,000
million.
a
shprt range, ferro had makes driers for paints and
its best January in the history of
stabilizers for plastics,
did $1,the company this year.
The Feb¬
600,000.
We have a synthetic
ruary figures are not out, hut it
enamel
division
which
makes
For the
the
of
engi¬
neering company that builds
continuous furnaces for the en¬
ameling
offer to sell
First Mortgage
Dated
we
history
offering is made only by the Prospectus.
Consumers Power
companies
$1,200,000.
Then
the
at
frigerator business and note
$40,000,000
banker aai»!« *Wcll, now,
$2,200,000 last year.
Our Allied
young man. you're m mee young
Engineering Company, which
man, but we have to have a itatemakes kilns for brick plants, for
ment
from you.'
We certainly
potteries, and for tile plants, did
loan
Look
fantastic.
been
units
approximately
did
story, the
couldn't
has
home
t h e se
in
growth
field
The two engineering
we
100%
wide
of the field.
that
has
group
man
young
The
appliances
more
decreased 60% since
They 1940, while those in the upper
curtains that were done with the
and about ferro.
A a
day for Frigidaire to defrost
went to hit bank to
refrigerators. When you sell a
borrow $100,000 to build an addi¬
heating unit in a refrigerator, that
tion and to expand his business.
certainly shows the broad scope
He had a nice btlle business.
He
industry
they
spend their money. The number
shower of families in the lowest income
You
industry.
over
since 1940.
.
Then, too, family incomes have
growh. substantially since 1940,
these
to explain the
is to say
way
that
breadth
we
of
and
pottery,
into
different
for
some
that the best
in
sold
are
go
those
way,
increased
has
items
con¬
for
expenditures
sumer
the
showed
This
income.
industrial
call
places
the
by
tioned—and,
the number of households jumped
25%.
•
major
appliances, • and have taken that
as
a per cent of total disposable
also
they
tanks;
they
plastic I just men-
fields like the
they make the
ordinary
switches; they make heating units
electee
units
the
electrical
in Chicago, which makes
think t can con¬
to
about
think
approximately $8,800,000.
Then we have Tuttle & Kift, Inc.,
what
is a ttory. in fust a very
Here
a
were
—
make
that that m not m.
vince you
I will speak
little while
and
—
about them in
more
appiumc«
the home
with
nected
subsidiaries
ing
house-
.
,
.....
this point by adding
to
STERN BROTHERS A CO.
26
10
The Commercial and Financial Chronicle
(1334)
barriers and restrictions
trade
foreign
Foreign Exchange Controls—
They Should Be Removed!
serious
maintain
Co., Chicago
In the years
World
was
War,
free'
a
preceding the First
international trade
enterprise.
Transac-
countries
between
were
by
governed
Nations
chased
goods
from
each
other
and
War
and
A.
problems, the
balance of international payments
that the
the dollar gap.
The decades
before the First World War were
relaxed,
with
abolition
at
the
moment.
monetary
or
liberal
economic
international
in
era
existing systems of quotas
should be
view to their
and exchange controls
a
earliest possible
the
comprehensive
foreign exchange
of
restrictions
made their first appearance. The
European nations involved in the
;war suspended the convertibility
of their bank notes into gold and
imposed other monetary regulations.
Many of the restrictiops
retained after the
attempt
to
in
war
an
weakening
protect
currencies and sectors of national
restrictions
The
economy.
tinued in
con-
countries until the
some
Texas,
ernment
in
tical
Business Conference
representing
which
met
nations,
Rye, New .York, in
at
51
November, 1944, laid
following objectives:
"We
hold
that
for
the
down
us,
fur-
no
ther ground should be yielded to
state
activities,
G,
Hoffman,
xoreign exchange conprevail all over the
which
.
the
If
guns.
nor
_1
Czechoslovakia
Belgium
^
other country
have been able to put itself
Germany
any
Germany
Italy
curseyCff^EuTope^during the
last 50 ^ears, and I Bo,, not see
the
how
Europe
tary
security
being
riers
Will
or
1
Norway
Sweden
economic-Vell-
until it sweeps these bar¬
away."
___
Netherlands
find, mili¬
ever
_____
_
Exchange
Foreign
create
the
payments
arrest
and
outflow of
capital. However,
they disrupted normal trade be¬
tween
nations.
»
■
to
'
*
■
^
•
•
Germany wets the first country
introduce
foreign
exchange
controls
in
1931
elaborate
and
to
system
establish
of
special
types
of
Currency
for foreign
trade.
By 1938, there were 16
kinds of German marks, and each
kind had a special value and a
specific use. Many countries fol¬
an
lowed
suit:
Hungary, Yugoslavia,
Czechoslovakia,
Bulgaria,
Den¬
mark, Estonia, Latvia and Lithu¬
ania established controls in 1931;
Rumania and Japan in 1932.
In
March
of
1933, foreign exchange
transactions
Restrictions
posed by Governments.
.
.
im-
These
.
restrictions and the red tape connected
with
them
have
un-
pave
the
one
way
for future armed
are obstacles
conflicts and which
military security and peace
would be maintained a single1 day
to
after the emergency
doubtedly prevented many busi- such is not the case,
ness
transactions, cut down* thei"
.
total of world
to that
trade
trade, and reduced
extent the benefits which
might
concerned.
bring to
The
all parties
objective
of
in¬
ternational action should be to
duce
them
all
to
and
state
re¬
fair
rules within which those that
re¬
The first Annual-Report of the
International Monetary Fund on
.
.
_
..
for
bank
credit
times
a
exporters.
;
payments are delong period as was
recently the case in Argentina and
Brazil, smaller companies with
tied-up funds may find themselves
in
a
precarious position.
The restrictions frequently create
acute financial
problems Which
cannot be solved by banks. Some
exporters have to obtain private
financing which adds to the cost
foreign
layed over
the
thfeir
merchandise
business
less
known to you.
retention
was
over
explanation for
of these
controls
given in the First Annual Re-
.
„
u
„
-
.
.
..
-
Jv)rtT°P Exchange Restrictions of
.
1949
—67
'
2.00
—40
2.00
—42
14.50
—29
,
^
Decline
$7.00
-
-
2.80
—37
;
2.51
0.29
—90
1
40.06
27.75
—31
0.81
0.01
—93
v
5.20
0.16
—97
53.33
26.30
—51
23.22
14.05
—40
23.99
19.36
—19
'
*
v
■
'
this monetary restraint? Since no
makes
and
profitable and
impossible.
,
;
The exchange risks involved in
local currency deposits are well
<
countries
tained
an
from
Although in many
undertaking is ob-
the
consignee
guar-^
depreciation in the
value of the deposited local curanteeing
Report states that it was mevit-
of
orJ51
any
these^ guarantees could
bf enforced m the event
substantial decline m the rate
hardly
a
can evidently be expected
voluntary action of government agencies, foreign traders all
over the world must bring about
by
through representations to their
law making, bodies. They must
persistently work for the abolition
of exchange and trade barriers. •
a
tions have been continued all
Some
he ships to
exchange restric-
tions and his turnover is curtailed,
a^ie that countries applying
■
with
sometimes
world.
four
or
when
spite of all the statements,
resolutions, promises and agree¬
ments, foreign exchange restric¬
the
three
line
year
countries
of
In
„
such action through public opinion, by exposing the futility and
harm
of
the
restrictions,
and
.J*1 subscribing to the purposes
..
realize the repercussions of such
an
shipment is of necessity limited in
can only use his.
rency,
March 1, 1951, states:
6.08
pays
relief
*nternational Montetary Fund,
released on Maich 1, 1950. The
Restrictions
.one
financial
An exporter who must wait for months
for
the
dollar
proceeds of his
dated
Exchange
.
.
passed. But
Eoreie.i
Exchange
Restrictions
V
Continue
L
the
main should be confined."
•
,
following principles:
would expect
that controls which
admittedly
stifle international trade, which
No
Controls
serious
many
problems
set forth the
"Release from
equipment
'
•'
.
were
con¬
for
pesos
ports and exports range from 10.95
to 40 pesos per dollar. You do
not need a vivid imagination to
3.37
Greece
•
trade restrictions have been
at it,
trade
These
agricultural
France
and
controls.
14
pays
Guaranies per dollar; and an im-
4.46
trols
intended to reduce in¬
goods
20.34
When
ternational
tial
dollar. In Paraguay, an importer
of wheat flour can buy a dollar
for 3.12 Guaranies; an importer of
England
disappear.
Department in November of 1945
of essential goods
7.5 pesos for one dollar,
while the importer of non-essen-
3.42
Denmark
a
The "Proposals for Expansion of
World Trade" issued by our State
fected
exercised
importer
$18.90
by a decline in exports,
flight of capital and monetary
disturbances resorted to exchange
af¬
be
to
the
pays
1939
Austria
that these restrictions would soon
Countries
meas-
allowed
be
the
in
Argentina,
clined in value.
Country—
used in the most efficient
manner, with trade flowing freely
Av
from one unit to another, neither
sources
age to economic health."
restrictions.
emergency
as
cannot
difference
rates is substantial. In
Percentage of
its re-
and
ures
The
exchange for
different export and import com-
And to the End of 1949
European "economy
been integrated, with
had
velopment of government controls
depression period was an
important milestone in the de¬
modiues.
maintain
of
Rates of Leading Foreign Currencies in August, 1939,
longer than the emer¬
gency itself, without serious dam¬
are'adopted
The
variety of
a
transfer of foreign funds.
his business. He
depression of 1929-1933.
countries
rates
change
pronouncements and the agreement-by the member nations of
the International Monetary Fund
to abolish
monetary restrictions
we
had every reason to expect
which
controls
on
forms, each one designed to improve the previous method. Ex-
economy
or
that
These
different
porter of bicycles pays 8.05 Guarunnecessary anies per dollar.
In Spain, the
* special rates for individual im-
and
world have taken
was
man
„A
believe
tries.
interference, to imprac-
i wsciiu
x
former
controls, unless
I could quote volumes of resolu¬
the ends to be served are clearly. tions and^ statements by governin the interests of all, and re- merit and busirressleadex^all over
concilable with our basic concepts. the
™ world.
9- *
*
*
In the
face
of* these
We
trade
is
busi-
unnecessary
schemes
trols
■
The International Business Con-
ference,
an
supervision.
position to sustain an effective attack on its neighbors. From
whatever point of view you look
Resolutions of International
systems
like
ness, _a
able to convert the Gerfrom the production of butter to the production of
ler
into
War
Paul
would
relations.
At the outset of the First World
were
business leaders.
League of Nations adopted
resolution at the 1937 Assembly
a
govern¬
mental
and eventu-
The
M. Strong
is foreign commerce,
as
is the method of multiple
exchange rates now practiced by
Argentina, Paraguay, Spain and
to a milder degree by other coun-
.
Statements to this
made by governments,
statesmen and
were
concerned
with
as a
Cur¬
during the war, it was
were
is
vices
arrangement,^ the opportuni-,
restrictions limit foreign ties for favoritism land influence,
delivered in November, 1949 be¬ payments through licensing and
'
'
I
'!
fore
the
Academy of Political prohibitions, and the transfer of 1
Controls Have Failed > ;
University, funds abroad is arbitrarily deterScience,
Columbia
Foreign Exchange Controls have
mined in terms of individual ex- so far failed to accomplish their
New York, stated:
"It was only
behind absolute change allocations, quotas, and in primary purpose. They have not
trade barriers that Hitler was able the postponement of granting ex- created
balanced
budgets
or
to create a synthetic gasoline in- change for long periods. Cost re- monetary stability. During the 10strictions
are
dustry and a synthetic rubber inexpressed in multi- year period between August, 1939
dustry. It was only behind the pie exchange rates, import duties, and the end of 1949 leading formost rigid trade barriers that Hit- excise
taxes
and
taxes
on
the
eign currencies substantially de-
removed.
effect
im¬
porters
not
ally
There
American; export
treated
af¬
Administrator of ECA, in a speech
commerce.
be minimized
should
Export¬
ers
and
estriction
The
States
will
Mr.
generally recognized and accepted
that foreign exchange restrictions
of
flow
:
plunge into an ecowar which will pave the
for future armed conflicts."
way
before the Second World
Long
the
by
free
gold.
Second
nations
belligerent
ex-
pered by red tape, regulation and
be kept to
University,
world
nomic
similar
and
regu¬
lated
hog and $60
per
conditions.
tnese
an
business
other enterprise that is so ham-
no
Con-
controls directly
his
conduct
can
under
wher¬
The
.
free
are
business that must be
the absolute minimum cpnsistent, watched
closely
and
strictly
with national security."
Foreign business ail
President Truman speaking at over the world is subWt
controls, allocations, quotas
devices governed in-
rency
payments
.
12
inconceivable that
porter
these1 burden.
that United
urges
Baylor
of economic warfare.
ternational
funds,
were
of
restrictions.
fecting foreign trade
for¬
for aboli¬
advent of the
the
the
by
avail¬
their
removal,
early
possible,
Government
War foreign
means
of
the
ever
by
Government to
States
some
effort
only
foreign exchange controls.
is
It
Convention
The
intensified
an
United
\ vention
exchange and
trade restrictions were intensified
the
to
extent
able
basis of $40
per tourist.
a
World
pur¬
world.
for
from
March, 1947 said: "If this country
into an agreement trading tourist does not take the lead in reducing
revenue for import of hogs, with international trade barriers, the
Witn
rules.
ness
free
the. world,
of
economy
rearmament of
the
June, 1933, two countries entered
busi¬
normal
the
secure
:
expected by voluntary action of government agencies,
be
tions
r.
domestic
our
facilitate
the
growth of foreign exchange controls since
World War I, and reveals handicaps and difficulties they
impose on conduct of international trade. Says such controls
have failed to gain their objectives and have intensified risks
in international trade transactions. Holds, since no relief can
been continued and enforced. Out
of 156 trading countries and areas
production required to
and
calls
Mr. Strong reviews
eign traders all over world should work persistently
tion of exchange and trade barriers.
and
Thursday, March 29, 1951
.
.
One of the most restrictive de-
or
the
spread of socialism and
attainment scatism, exchange restrictions have
the
to
by
a
increased volume of world
of the
trade
By A. M. STRONG*
Vice-President, American National Bank & Trust
threat
and enforcers of these controls
on
constitutes
commerce
.
event. ^ devaluation.
in
the
present
of
removal
emergency,
the
exchange controls by
aiiies an(j other friendly nations will facilitate the movement
our
0f
defense
materials, and help
spreading wave of inflation. The gradual abolition of
check
the
such controls should therefore be
ma£je
part of the European de-
a
fense program, and
0ur
negotiations
tions.
The
world
must
free
be stressed in
with, other nacpuntries of the
reexamine
the exist-
ing exchange restrictions in the
light of the objectives which they
are supposed to accomplish. They
must
not
controls
have
for
The
recent
p0SG(j in our
prke
own
the
V
sake of controls.
controls im_
country are a
form 0f monetary restraint upon
forei
trade The need for such
controis should be carefully feexamined. We must make certain
The uncertainties of exchange
the Fund, all member countries restrictions in their international
that the regulations will not imagreed that restrictions on economic relations would in due regulations make Iqng-range buypajr our export markets or the
subsequently devalued. Most of current foreign exchange trans- course discover that these restric- ing and selling a hazardous Busiimportation of materials needed
the Western Hemisphere countries * actions, which cover the broadest
tions permitted them to pursue ness. The foreign buyer of Christ- for oUr (jefense an(j our national
imposed
exchange
restrictions sectors of international economic policies which would mot other- mas goods for which he must coneconomy, our export community
during this period.
relations, even though they may wise have been .feasible. Hence, tract during spring or summer, must
take an active part in the
Prior to the Second World War,
does not know whether his govJ5® necessary under certain condi- when the original need for proreguiation of exports and raise its
38 countries exercised monetary H?ns'
ernment will permit him to buy
arf. undesirable in principle, tecting balances of payments revojce k guide and help our govcontrols of one kind or another
A"e Articles of Agreement are ceded, they were relqctant to dollars m November when the ernment in this difficult task. *
which materially affected interp°od>
?n-ive, or what ne wm be
^us a f.orrhal fepudiation of re- abandon these convenient devices.
strictiomsm as a normal instrunational commerce.
These coun¬
Whether or not the present
Many countries found that their required to pay for the dollar.
restricted in the
TJnited States and the dollar was
were
nave
^
_
tries prevented payment for cur¬
transactions by limiting the
rent
ment
of
international
poiicy.
economic
,
restrictions gave them an international bargaining counter which
transfer of funds and engaged in
barter deals and special agree¬
Conventions
ments.
recommended the removal of for-
lateralism of world trade and pay-
eign trade restrictions. in resolu-
ments,
tions
result of the spread of restrictions,
In
1933, there were 190
such
agreements
involving
all
phases of international trade.
In
*
The
National
adopted
resolution
An
31st
Club
address
Annual
of
by Mr. Stron«» at the
Meeting, Export Managers*
New
York,
New
York
March 21, 1951.
City,
York
Foreign
have
persistently
since
adopted
Convention
Trade
at
in
1945.
the
The
New
November,
1950 states:
"The
continued
prevalence
of
was
the
particularly effective under
conditions of increasing biwhich itself
Whether
the
was
retention
a
direct
of
for-
exchange controls is motivated by national policies, by personal reasons of the promulgators
eign
Similarly, the American exporter
does not
in
a
be
know
whether his sales
given country will suddenly
curtailed
because
mental restriction
the
currency
or
of
a
govern-
change in
strained
international
develops
Jinto
situation
world
war,
will eventually prevail. Men
will not forsake their freedom for
the Utopias of Communism, Fas-
peace
cism
rate.
a
or apy
other form of absolut¬
ism. Werimust lay the foundation
Is There
ari Answer?
for that
erally recognized evil? What can
peaceful world and
certain that' foreign exchange and trade barriers will not
be done to free world trade from
be perpetuated.
What is the
answer
.
to this gen-
now
mal£e
Number 4998
Volume 173
.The Commercial and Financial Chronicle
;.
(1335)
Since
income.
And What We
amount
period
I
that
assume
izes
b.y
every
that
now
we
real¬
one
faced
are
with
a
credit
inflation, which is steadily
serious
monetary
and
tion alone
1939.
In other words, the general
one
again
gerous
$1.78 to buy
dollar bought in 1939.
,
is
inflation
7%
us
increase
by next May
what
That
work!
at
least
of
We must not forget
of
year
takes
now
additional
stage.
of
Many
base
living for the moderate in¬
consumer group is such that
come
reach
dan¬
the
of
An
5
to
generates
war
less of how
During
shoot
away
the military goods that we
have
just produced and leave in
no
new
productive
circulation
goods
been
is promised by
show
to
has
that
all
for
Korea
into
is
June
in
has
another
spent. What we do have left,
expected.
The
infla¬
tionary effects of these increases
already granted are being felt
are
of deep concern.
cause
a
Some of
that every
war we
another
and
carefully the economy
is watched.
them, in several hundred
companies, ranged between 5 and
15
cents
recent
the
to
an
hour.
increase
the
recall
$1.60 granted
workers, after the
had been promul¬
mine
freeze
wage
We
of
gated.
They have been to a de¬
reflected in increased prices
gree
of
the-finished
coal
products, (note
automobiles).
General
and
expanded amount statistics show us that wage rates
in the form have more than doubled since
of wages and profits to be spent. ■ 1939, while
total manufacturing
as to how this
ture!--This
Consumer's -General
Ih the process of providing on the payrolls are now pouring out more
dread
disease
Price Index is an average of many
home front, for a potential war, than 3xk times as many dollars
attacked our
prices, including rent, gas, elec¬
the production of civilian goods is as in 1939.
In contrast, our na¬
economy.
All
tricity and transportation. These
of necessity curtailed.
This will tion's industrial output, stupen¬
of us are wor¬
latter items were controlled when
the
above index was prepared.' immediately widen the existing dous as its performance has been,
rying iab out
inflation gap and push prices up¬ has not increased more than 100%,
how it can be
Consequently, if they were left
ward.
That effect is being felt as
against payroll increases of
out of the calculation, the value of
stopped
b eThen too, more money- 350%. In other words, new wage
fore
it
does
the dollar for uncontrolled items already.
in- circulation have in¬
would be considerably lower than has to be spent on the defense dollars
Dr. J. L. Fitzgerald
irreparab 1 e
harm.
We
56.5.
For example, the index of program siqce the government is creased over twice as fast as new
have turned to our government food prices since 1939 had risen also a consumer, because it must goods. This again is another di¬
for
guidance and for remedies, to 209.5.
Figures since released buy raw materials, finished goods rect factor in widening the infla¬
and labor in competition with the tion
but so far the doctor's prescrip¬ show a further rise.
gap.
Strikes, the- 40-hour
consumer i dollars.
Already the week and reduced production per
tions for a cure have been few
are
in
and
confusion
the
doubt
Stabilization Board itself.
ineffectual.
fact,
the
from the
As
a
disease.
same
matter
himself
doctor
is
of
sick
not
is
the
prices,
however, is
*"
of
pic¬
the
general
wholesale
The fever
price level has also risen since
rising and economic health of Korea, which increase is not yet
one
of us is threatened reflected
extensively
in
retail
through our pocketbooks and our prices. In fact, since June, 1950
standard of living. We are losing
(Korea), some raw materials have
strength to effectively meet the shown
price
increases
ranging
strain
of
the
military
struggle from 25% to 300%. If these ad¬
of
Out of the confusion
utterances
as
inflation
and
the
the
to
who
cause
of
is respon¬
are
vances
ultimately passed
into retail prices the
impact
government is realizing that each
manhour
of its dollars will
lating to the volume of production
we now have.
It is not only the
on
point of view is emerging,
it is well for.us to keep
•
of
some
the
but
gap,
as
wages
the "floor" under¬
further
are
added money
factors
from
November
and
over
$6 billion in the last half of the
month.
in
This phenomenal increase-
in circulation explains
money
for
itself
why we have a severe
inflation on our hands, discount¬
ing for the moment all other im¬
portant causes,
mentioned.
inflation
supply reflects
money
of
which have been
This
billion
$8
an
the
of
increase
in bank loans
tween June and December.
be-,
In the
first week of January, bank loans
increased by $38 million, while
deposits
This
fell.
statement
is
to support the fact that bank loans
for all
purposes—working capital,
buying, mortgage fi¬
nancing and to carry stocks oix
instalment
margin—have risen heavily in the
past few months and has invoked
the
credit
curbs
the Federal
by
Reserve Board to check the infla¬
tionary possibilities.
These
only
are
th&
of
some
factors that have created and fos¬
the
tered
present inflation.
which
inflation
an
moment
fraught
McCabe
of
is
It is
at
the
with
explosive
power, as the federal debt is piling
higher
and
higher.
Chairman
the
Federal
Reserve
Board said: "Inflation isn't around
the corner; it
is right here now."
What Have We Done About It?
re¬
The next
question.and the most
important of all is this: What have
we
placed in circulation
done about this present infla-
Continued
through increased wage rates that
on
page
31
been
rising
prices to the government even as
far back as last October. No doubt
an offer to sell nor a solicitation of offers to buy any of these
The offering is made only by the Prospectus.
This advertisement is neither
...
.
„
)
additional $16.5 bil¬
the
lion asked for by Mr. Truman to
'
'
•
*
securities.
*
:
•
March 29, 195*
NEW ISSUE
carry on until July 1, 1951, will
have to be spent in higher prices,
*
How Inflation Developed
which
has
summer
than canceled out in
more
sible for its progress, one impor¬
tant
last
Congress
on
that
The $4.7 billion voted by
April.
will be terrific,
consumer
buy fewer and
The jump in prices of war mate¬
rials has -been sharp since last
is
us.
power
fewer tanks and guns and planes.
every
ahead of
an
purchasing
increased
month
wholesale
must not overlook the
we
that
fact
whole
with
connection
In
and
this
But
inflation
fact
neath production costs is built up
general
round of wage increases — the
fifth in the last five years—and
inflation, regard¬
an
with
began
difficult to compre¬
are
the
also
,
broadened
War Generates Inflation
cost of
threatening to
a
supply,
level
it
infla¬
the
is
under selling prices, which in turn
inflationary factor is have to be pushed up further.
Our money
that of wages, which is a major
supply reached a
new high of $176.2 billion on Dec.
component of production
costs.
31.
It
rose
The upward wage-price spiral that
by $2 billion in one
more
The
1942-1945.
of
increases
it
Another ever-present and ever-
hend.
price
increasing and
of
alone
of
dangerous
tionary possibilities in this situa¬
does both.
or
costs
billion above the total
we spent during the war
than $100
remedy unless somehow it provides for increase in supply of
excess money
defense
for
defines monetary inflation and describes how
it has developed since the last war and the factors that are
contributing toward it. Warns current anti-inflationary meas-t
ures- are ineffective and concludes there is no genuine or sound '
labor force
Wages As Inflationary Factor
$250 billion, with annual
spending on the so-called
ascending plateau of $40 billion
annually. Another decade of such
deficit spending would mean a bill
Dean Fitzgerald
the
are
deficit
City
Dean, Manhattan College, School of Business, New York
bit for
a
70 million needed^
than
By JAMES L. FITZGERALD*
materially reduces the
sure
spending has increased four-fold.
Our present federal deficit is more
Can Do About It
civilian goods, or
1939, the national
tripled, while public
income has
11
resulting from the present infla¬
1,000,000 Shares
The second basic question we tionary spiral. Of course, the pub¬
constantly ihjmind—that we can¬
not expect at this serious stage of have to ask ourselves is this: How lic-always has to pay the infla¬
;the inflation; any quick, easy and has this condition of severe infla¬ tion :Jbill of its own government,
through higher taxes, or must
'Accordingly, it * is tion developed?
that we beware of
Since 1939, the total number of shoulder ultimately an undeserv¬
quack -cures, that will only push dollars in circulation in the United edly heavier bill, which results
the
inflation fever
higher and States 7" has increased more than 'from deficit spending.
.
make' the ultimate break-up of five
times, from 33 billion to 176.9
Effect of Manpower Situation*
the economy more certain.-billion.
During the same period
our industrial production of goods
The possibility of a severe in¬
painless:
cure,
'
imperative
-
.
.
-
What Is Inflation?
to buy
In order to form a proper
judg¬
the efficacy of any
proposed remedy for inflation, we
must first get a clear-cut picture
of just what inflation really is,
ment. about
then how it has
and
lic
John Q.
efforts of Mr.
The
to
really
come
get at the
to be.
Pub¬
causes
our
with these dollars has in¬
by only about 80%, and
production has increased
flation
by only about 33 %■%.
Over five
result?
dollars,
as
less
after
in
1939,
Prices. must
goods.
as
of
taken
out
many
country
a
volume of
ents Hence
inherited the basis of this present
pass the blame upon the other fel¬
low for the condition we are in.
November, last, the United States
Therefore, the first question we
should answer is this: What is
this inflation that every one is so
lion
what are the
troubled about, and
answer
in
itself
as
a
can
be
that
we
legacy from World
are about $50 bil¬
purchasing power still in
Employment Service reported that
there were 51 areas with less than
the
3% unemployment. Right now the
War, representing deficit spending
employment situation is tight on
There
War II.
of
circulation
of that
the
from
period.
end
The bonds
the hands of the banks
signs of its presence?
\ The
stated
It is interesting to note
not been
paid off
as
of
are
the civilian front. To make it even
in
yet.
nounced
In 1949
intend to step
that they
their manpower requirements
to 4 million instead of the 1V2
to
of
they had planned earlier
get by with. Spotty shortages
skilled labor are already devel-
major
with
oping,
about
a
We prove it by showing
general price level has
increased by 78.4% in terms of the
the
which we are familiar.
At the present
ment is
spending
time the govern¬
more
each
year
means
shortages
labor
in
This
dozen occupations.
'
that
competition for the
production of civilian goods, which
address
by
Dr.
ings and the increase is outstrip¬
ping the growth in the national
Lynch, Pierce, Fenner & Beane
Union Securities
more
men
are
Stone & Webster Securities Corporation
rise and civil¬
production drops.
That situa¬
tion may enlarge the
inflationary
ian
gap
older
further.
men
However,
and
the
women,
handicapped
will
be
encouraged
to
enter the
labor market to release the
pres¬
and Company
Coffin
& Burr
Incorporated
White, Weld & Co.
Shields & Company
Reynolds & Co.
Central Republic
Drexel & Co.
Paine, Webber, Jackson & Curtis
Wertheim & Co.
Bear, Stearns & Co.
Dean Witter & Co.
Blair, Rollins & Co.
Incorporated
Incorporated
and
drawn directly into
service and wages
Corporation
Hemphill, Noyes, Graham, Parsons & Co.
A. C. Allyn
Lehman Brothers
Lazard Freres & Co.
Kidder, Peabody & Co.
'
will be accentuated, as more
than the nation's annual gross sav¬
Fitzgerald
at
luncheon of the Bronx Rotary Club, New
York City, February 13, 1951.
♦An
Harriman
Ripley & Co.
Incorporated
"
■
million
4
,
Eastman, Dillon & Co.
Goldman, Sachs & Co.
Glore, Forgan & Co.
Merrill
Corporation
Blyth & Co., Inc.
Smith, Barney & Co.
up
*
inflation!
The First Boston
■
simply.
,
Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified to
act as dealers in securities and. in which the Prospectus may legally be distributed.
tighter the armed forces have an¬
and have
Inflation is another inflation waSj loaded on
present in an economy when there top of the' older wa^' inflation.
are too many
dollars in circula¬ There was a potential government
tion,
which are bidding for a surplus in that period which might
have been used to help reduce the
given quantity of goods and serv¬
ices.
The result is a rapid and $50 billion deficit. However, the
sharp increase in the prices of al¬ viewpoint of the Administration
most every thing we buy with the was that a depression was in the
making.
Therefore, they argued
swollen inflated dollars.
that the price
level must be 1
As of Dec. 31, 1950, the value of
pushed up and kept up. It was in 1
your dollar and mine for purchas¬
this period also that the Admin¬
ing goods and services has shrunk
istration embarked on the expen¬
to 55 cents' worth and it is even
lower now.
This is the effect of sive Fair Deal Program with
quite
share
plosive inflationary factor in our
manpower
situation.
Even back
employment scaled all pre¬
•
.,
Price $25.25 per
last fall
inflation
v.
•/
($10 Par Value)
have another ex¬
we
vious peaks, to reach 02.3 million,
with unemployment down to a
little more than 2 million, which
is a very small figure.
Early in
stream.
Common Stock
em¬
operating at virtually full capac¬
ity. That is our situation at pres¬
much
necessity
circulation
the
of
a
such as we had in
World War II, is not nearly so
great as it is when the country is
chasing
are
twice
than
as
is
ployment,
What is the
times
in
developing
where there
farm
underly¬ rise in those circumstances, unless
more goods come into the market,
or the excess purchasing power is
of the inflation would
be very much simplified, it seems
to me, if various groups had not
been trying hard in the past six
or eight months to understate the
illness, and working frantically to
ing
creased
Company Clark, Dodge & Co. Estabrook
& Co. Hallgarten & Co.
(Incorporated)
Hornblower & Weeks
llayden, Stone & Co.
Lee
Higginson Corporation
Laurence M. Marks &
Co.
W. E. Button & Co»
Carl M. Loeb, Rhoades & Co.
F. S. Moseley & Co.
G. H. Walker & Co.
12
(1336)
The Commercial and Financial Chronicle
;
...
Y
s
Chamber
Policy?
our
creased control
materials for
raw
period of
free
,,
the
emergency;
with
is faced
a
crisis and perhaps its great¬
grave
est challenge to survival. We must
develop — and we have made a
withstood two attacks
militarism.
tions
Where
by German
free
to
in
make
The
America's
de¬
and
how
world
and
in
the fact
threats
of
of
Each
world
acting alone is too weak to
member
of
the
these threats
attack.
Not
free
to
or
the
even
re¬
United
erful
enough
for
self-defense.
in
advances
begin-
H.
is
material
therefore, examine
mid-century.
i
a
the
the
world
at
tablishment
and
the
es¬
maintenance
of
just and lasting peace. It should
include
friendly cultural inter¬
nations
among
well
as
of
many
knew
us
Korea
hordes.
by
to
nearer
the
facing reality: Our lives
by an aggressive
force that has shown its intentions
to eliminate from its
well-planned
are
less
being
Today,
an
expression
for
a
of
in
especially
before,
ever
called upon for
national
century.
in spite
of
doubts
about
of
age
always of interest to individuals in the investment field. In addi¬
being one of the leading companies in the industry, the
report is unusually informative
than
world
diminished
The
report
showed
that
for
the
despite
other
the
atom
bomb.
On
workmen's
pany,
concludes
hand, the United States has
tremendous
gains.
Since
made
Korea there is
unity.
more
Production,
growth have been
quires
the
The
of
World
War
II.
has turned from
area
in
we
with
one
.
.
.
of
of
utmost
In the past, many of
most
reluctant
the
fact
to
We
can
that
we
the
last
appear
and
in
decade
be
to
fact
When
we
we
international
decisive
because
precedents
on
A
that
be
the
which
last ten
-£xJR?nenced
sprinkling
and
I
Either
can.
all—make the
mean
neces¬
to stop infla¬
now
will
we
all—
we
be
faced
later
If
want
you
A
as
a
It
November
was
an
of the consolidated operating statement for the
showing the increase in underwriting volume, losses
summary
last two years
and expenses is presented below.
1
1950
Underwriting:
Premiums
Incr. in
written
unearn.
Premiums
Claims
——
prem. res.
earned
and
claims
incurred
Exps. and
Total
____
claims
or
decrease
*
176,393,914
15,263,793
1-33,983,132
12,426,488
+12,410,783
161,130,121
151,556,644
+
83,479,925
70,354,301
+ 13,125,624
69,204,074
63,690,431
+
152,683,999
134,044,732
8,446,122
17,511,911
14,949,898
212,807
12,513,541
—319,632
15,162,705
12,193,909
23,608,827
5,533,556
29,705,820
18,075,271
21,703,820
*
+ 2,837,305
9,573,478
exps.
■
incurred
taxes
Increase
s
and
5,513,643
exps.
+ 18,639,267
—
9,065,789
Financial:
Int., divs. & rents earned
Profit
or
loss
on
sold
sees,
Investment income
Gross
Federal
operating income.Y
income
tax
Net operating
The
accrued
income____
investment results
come
from this
come
taxes were lower
source
underwriting profits.
were
showing
+ 2,436,357
8,002,000
+
532,439
+
2,968,796
—
6,096,993
—
2,468,444
—
3,628,549
particularly favorable with in¬
gain of
a
19%.
over
Federal in¬
primarily because of the reduced statutory
Final net operating earnings
reduced
were
16.7% from the record year of 1949.
Converting these earnings to
for
the
would
on
increase
work
out
in
the
a
unearned
approximately
as
per
share basis and adjusting
premium
the
reserve,
shown below.
results
The figures are
the basis of
3,615,842 shares of $5.00 par capital stock now out¬
standing which is after the two-for-one
split recently voted by
stockholders.
Y;
Statutory underwriting profit
Equity in increase in unearned premium
substantiation
any
the
and
automobile liability, were
underwriting profit for the casualty
reported. *
Nevertheless,
whole
with
reality of making much
bigger, if not total, sacrifices. Y
of
this, study the inflation experi¬
in Germany, in China, in
France, in Italy. The after-effects
of inflation in Germany helped in
producing Hitler; it gave China
Mao Tse-tung; to Italy
(Mussolini
and to France an unhappy parade
of
so
to
card
so
to
than
1950
1949
$2.34
$4.84
1.65
1.36
$3.99
$6.20
4.19
3.37
$8.18
$9.57
reserve
ica, it has and is steadily under¬
mining
the
confidence
of
our
people.
most
America
i
'
.
swift
years
'
^relatively,
best
ally.
difficult
problem facing
friends
This-then
setting
our
is
abroad.
bird's-eye view
a
live
we
which
in.
It is the
must
apply
foreign economic policy.
-
our
on
The
arises
first
is:
-
-
ternational
pace
income before taxes
Federal income taxes
2.21
$7.36
additions to
security holdings
$23,076,700. Of this total
for the y§ar
approximately $10.4 million
in
bonds, $3.4 million in preferred
mon
stocks.
1
-
amounted
was
to
invested
stocks and $9.3 million in
com¬
■
now
be
immediate,
our
in¬
major groups, $9 million was added to the hold¬
ings of state, county and
municipal securities, $3.9 million in pub¬
lic utility preferred
stocks, $4.0 million in public
utility common
stocks and $5.1 million in
industrial common stocks.
Common stock investments
amount to 45.8% of the total
port¬
folio of $380 million
with bonds and preferred
equal to 37.8% and
16.4% respectively. Some of the
largest common stock holdings
were Humble Oil 12.8
million, Sun Oil $5.2 million, Standard Oil
of New Jersey $4.3
million, Gulf Oil $4.1 million and Christiana
Securities $3.0 million.
economic
policy?
strength at
of
to offset
the
a
BANK
military
NATIONAL BANK
and
is, I should think, objective
number
one. The plans are becom¬
ing better defined. They are being
carried out by the Office of De¬
Mobilization
the
American
Defense
in
and
Board
under
Laird, Bissell & Meeds
Members New York Stock
Members New York
(NATO). Businessmen
;'movers
dustrial
be
of these
the
prime
are
policy
efforts. And, in¬
operations,
as can
,Continued
Bankers to the Government in
Kenya Colony and Uganda
Head
Office:
be wit-
120
Curb
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Belt
Teletype—NY 1-1248-49
i.L. A. Gibbs, Manager
Trading Dept.)
page
36
Bishopsgate,
E.
C.
Branches in
Colony,
India, Burma, Ceylon. Kenya
Kericho, Kenya, and Aden
and
Exchange
Exchange
Specialists in Bank Stocks
on
26,
London,
the
the North Atlantic Treaty Organi¬
should
of INDIA, LIMITED
Washington
level
Production
INSURANCE
STOCKS
zation
and
._
Net
of the nations in the Soviet
power
orbit
that
should
our
Development
rapid
we
question
What
short-range,
as
cannot
Stalin's
and
of the world
on
our
is
Next to Soviet imperialism this is
t
Net
Within these
Inflation
the
._
But more
here in Amer¬
even
.
score
a
inflation * destroyed
everywhere in these
countries. And
faced
few
require
keep track of.
this,
are
we
that
confidence
fense
base
.
cabinets
inex¬
have
we'
11
transformation
of
put out inflation's flame
are
problems
policy. '
-
or
inexperi¬
frequently, if not mostly, in¬
are
centers of freesurvived.
They have
the
perienced.
i;The established
.
survived
enced
achieved.
have
on the whole,"
"Economist," "the
been
alibi
that
reconstruction "task has
/•An address by Mr. Sloan before the
qonjic Club of Detroit, March 26, l£5l
But
expression
offer "as
rapidly
political community. While
t
completely recovered from
evastations, and dislocations the
ost difficult part of the Western
ipm
privileges.
these re¬
early years of our
only by avoiding en¬
tangling alliances. World leader¬
ship has been thrust upon us so
nd
een
half-
a
Republic
isorganized by the effects of war
rito a smoother-flowing economic
ropean
in
accept this responsibility.
Western
an
an
have
us
Western
urope
be
foresight and energy."
businessmen.
visualize the antagonism
Soviet system.
World, especially
restern Europe, is better off toay than in any period since the
nd
to
responsibility and leadership from
the United States, from American
ing factors. Korea has awakened
many of those who did not pre-
iously
the
The present world situation re¬
determin¬
a
and then with in¬
the
remarkable
a spirit of
economic
our
said
out
performance has been
of
to
the
"Economist"
accepted
consistencies.
'
favorable.
in
compensation
unprofitable.
business
twi¬
a
suffered
All
of
the foremost enemy
of the Western World,- at the pres¬
ent, is inflation.
We must stop
putting fuel on the flame, while,
at the same time,
feebly trying
with
still
sponsibilities with doubt and hesi¬
the
in
generally
was
losses
of the principal divisions of the
company showed an un¬
derwriting profit although in most cases considerably less than in
1949. Two of the major underwriting lines of the
Indemnity Com¬
Inflation, the Enemy
or
in responsibilities
now
world
company's insurance and
storm, net operating earnings were the second largest in the his¬
tory of the North American Companies.
So¬
light of war (which we hope will
brighten rather than darken in
due course by our own actions)
the challenge is even greater. We
have to superimpose a
military
economy on a civilian economy in
the hope that the least amount of
belt-tightening will be necessary.
This situation brings with it an
inflationary tendency.
sacrifices
United
but of
provides
tation and
the
v
free
tion
defensive, therefore
has
the
sary
coming
"The
the
turned
more
of
moves
1950
year
extensive
influenced by
be.
may
With
a
gloriously expand¬
a
the
on
it
viets
next
in
power.
economy
America
ma¬
States
succeeded,"
"has
imposing
jor gains. They have swung China
into their orbit and they are said
have
as
and
century has wit¬
which
to
the
the
on
investment operations.
ences
world
of
not
ing world
|o warrant such doubts,
to
kind
London
recently,
United
The Soviets have made two
in
spread of Commun¬
a
renowned
our
not
who
is
countries
United
as
States .has
are
what
challenge to the United
a
leadership
rpany
States has
is
But the situation
ever.
the
nessed
that
i-<
in
friendly
many
leadership and
capitals of the free
World, in London, in Paris, "in
Home. Actually, the power of the
policy in
those
world, the West
richer
States if the
the United
States was at its prime of
strength
as a world power. No one doubted
there
to
Wars
civilization
The twentieth
Today
possible
was
World
ism is to be held in check.
eco¬
years ago
strength.
the
is
presents
Worldwide Doubts About the U. S.
this
consideration
foremost
smaller Y' Actually,
Notwithstanding the post¬
of Europe and the
rest
relations.
Nearly six
this
two
poverty
a
much
answer
spirit than
foreign dealings,
international
our
of
war
in
a
Unity must start
our
are
the
Western
in the nineteenth
was
That
Western
whole
unity,
and for
purpose
spirit.
home
nomic
are
of
sense
decisive
at
than
more
Americans
we
-
in the
certainly
than it
now
decay.
individual.
misery
is
sufficient
represented by the free¬
as
for their own well
individual happiness.
and
World
obstacle
the
right
bounty
claim
of
the
not
portunity to utilize nature's end¬
path of imperialistic advances the
dom
Parliament—all
to
free men—because
denied their rightful op¬
Human
threatened
are
have
or
destiny
they
us
the freedom
not
determine, .and to control their
Communist
But Korea has carried
vanquished alike)—
have
or
risk the me¬
production—
have or have not the right to the
just rewards of their honest la¬
own
for
(as
own, to use and to
chanical
means
of
to
many years has been brought out
into the open with the invasion
of
to
access
promised in the Atlantic Charter
bor—have
as
mutually advantageous trade
among nations.
What
of
materials
raw
to victor and
a
course
world's
have
foreign policy should be
freedom
not
us
moment,
The paramount objective of our
*
have
or
live in. Let
.
Company of North America
tion to it
-
for
JOHNSON
This Week—Insurance Stocks
v
„
George A. Sloan
E.
The annual report of the Insurance
ag¬
aggres¬
States standing alone can be pow¬
have
men
future
widely
Acting together, the free nations
wealth, in understanding by moral standards and produc¬
ning — the of fellow men, in science, in tol¬ tive achievements will
bring about
strength
of erance and in decency.
the currently lacking balance of
the
free
na¬
Y Still, the world today has no power. In all these endeavors our
tions to coun¬
peace.
There are large masses of basic aim must always remain the
teract the agpeople
good, intelligent, indus¬ same: The maintenance of peace
g r e s s i v e trious
people—who, are being led but without sacrifice of freedom.
moves
o f
to slaughter by political leaders,
The
fear
of
what
the
next
Communism.
and are declined the right to the
moves
of the
A
Soviets+and their
foreign enjoyment of life, liberty and the
satellites will be is (inherent in
economic pol¬
pursuit of happiness.
the policies and the ^thinking of
icy, by defi¬
The world continues to consist of free peoples everywhere. Hearings
nition, should the "haves"
and, the "have nots." before Congressional Committees,
be
the
true
You may ask, "Have or have not debates before the House of Com¬
reflector of
what?"
And my answer is have mons, discussions in the French
the world we
good
By
current
sion.
sist
institu¬
free
maintained,
are
continued
Bank and Insurance Stocks
reassur¬
believe
democracy always
how
on
gression
development of non-Soviet world's strength.
world
of
self-doubt.
counteract
The
who
us
wisely it carries out the responsi¬
bilities of leadership. The central
point must be the unification of
administration of all U. S. aid efforts under single agency;
and
system
...Surely,
our
over
of
Congressional debate on foreign
policy is a true indicator of this.
foreign economic policy, Mr. Sloan
proposes:
expansion in investment abroad by private companies; all-out drive to stop inflation throughout world; in-
;■
all
induces
Commerce
of
to
pends
As vital elements of
;
ing
Chairman of the U. S. Council of the International
i
f; ■
doubt. It should be most
the freedom of the individual that
By GEORGE A. SLOAN*
.
.
Thursday, March 29, 1951
.
.
young nation without mistakes in
action and
without moments of
What Should Be Out International
Economic
.
Zanzibar
Subscribed Capital
Paid-up
Reserve
The
Bank
£4,000,000
Capital
£2,000,000
Fund
£2,500,000
conducts
benking and
every
description of
exchange
business
Trusteeships and Executorships
*
also undertaken
'
>
Volume 173
Number 4998
.
.
The Commercial and Financial Chronicle
.
the well being of the community,
but which cannot be performed
Roadblocks to Progress
(
By CORNELIUS W. WICKERSHAM, JR.
on growing government partic¬
ipation in business enterprise, notes that tendency handicaps
progress and industrial expansion. Contends government should
are
a
To
facilities toll-free,
few of the roads
bridges which rely upon tolls
just
name,
.
others.-'
But
some
•
-' ' 'V
services
/'
a
community, but which cannot be performed for profit. Holds
that public will get more service at less cost if corporations
by
for
government
profit.
a
government that the need of
the
situation.
dustrial
When
the
in¬
revo¬
lution first
The task of creating jobs for the
men and women who have left the
has
farms
re¬
way
150
years
generally been left to
operating in a capi¬
talist economy wherein those with
ago
in
Eng¬
vision
ally got under
land, the
burned
the
power
looms
that
give
ic
§ f\
iifu
All
n
^
to
growing
tion
of
cost
As
a
na¬
the
at
unem¬
ployment for
the
rebelling
C.
W.Wickersham, Jr.
To¬
weavers.
encouraged,
60
over
u
.
■'
.
highways today
operated
are
used by
automobiles
the
after
other
of
our
dividends when found, but to find
them is no easy task. A recent re¬
destroy the diesel locomo¬ rience of these companies, accord¬
merely to load it with ing to their testimony, is the great
unneeded "firemen." Locomotives shortage
not
of funds
but
of
that can pull 100 cars, they try by soundly conceived projects.
to
more
but
legislation to limit to 70.
that
be
can
handled
Trucks
by two
men
required by the union contract
are
to have three.
The
who
man
could
not
with
compete
chine which could
minutes
could
in
produce
in
a
hand
the
ma¬
matter
of
than
he
From
his
more
whole
a
by
wove
day.
narrow
view he could not foresee
that
cloth
low
if
could
be
sold
at
a
price not only would the de¬
mand
that
cloth
for
there
able to
be
would
increased
be
funds
but
avail¬
satisfy other demands and
take
trip
a
highways in densely
press
Only
A
further
after
17,
full
1%,
or
12%
were
consideration.
in
resulted
in¬
vestments, most in the range from
to five hundred thousand dol¬
one
lars,^achieving 10 to 40% minority
interest.
Point * that here
is
a
work of the Authority.
poration
the
operates
basis
same
The
cor-
business
a
on
private enter-
as
prisej but is tax- free. Its tax
emption perhaps enables it
ex-
to
borrow money more cheaply than
private enterprise.
jng something that
poration
could
But it
a
in
do
is do-
private
the
corway
private enterprise would do it.
If
the
Triborough
Bridge
Au-
Jhc^riiy or any other authority for
make.
That traffic should charged
also depends upon the
bumper-to-bumper through the availability of alternate routes.
city is not only unpleasant, but Thus the Brooklyn-Battery Tun¬
by raising the cost of delivery of nel appears to be operating at a
Tunnel
would
go
commodities, substantial¬
ly raises the cost of living.
hot
does
have
the
funds
for
Costs to Public
build
can
no private corporation
such a highway in the
it, for
cure
city.
Instead, it is proposed that
a
not
seem
sound.
The
Holland
Tunnel, which, is operated by the
Port of New York Authority, has
long
since
still
costs
paid for
500
to
J
builds the new cross*own
elevated expressway it will
be a toll road for
.
generations—
if
the
experience of the Holland
If
itself,
drive
yet it
a
car
through. The profit now goes to
pay
debt incurred in the construction or
operation of other
future
foreshadows
events.
*
'
should
one
'
the: toiir
make
of New York
City by subway/, one
would be amazed that any human
being is willing to put up with
the
indignities
which are ! t|ie
daily lot ;of v the uncomplaining
subway rider in "this c'ity._ Aijibrlg
which
facilities
the
needed
in
New
area
to
in
urg0ht^y
a JrieSv
are
is
York
system
transportation
ground
any
The theory that the public will
improvement.
Not only is such congestion be¬ get more service at less cost if the
yond the limits of the city finan¬ corporation that operates the
cially to cure, but private indus¬ bridge or tunnel or other facility
try is not allowed to attempt to is appointed by politicians does
such
public corporation, the Triborough
J. H. Whitney & Bridge Authority, whose b6nds are
tax exempt, should build it.
Yet
Co. stated that they had looked at
this public corporation has no tax¬
approximately 2,100 propositions
Its income must be
in the last four years. Thirty-five ing power.
derived from the profits in the
percent were rejected at once be¬
operation
of
this
and other enter¬
cause
outside the firm's purpose,
or
clearly lacking in merit. An¬ prises. This authority, a corpora¬
other 52% were rejected after ini¬ tion which is almost beyond the
rejected
are
City of New York by lated areas is tremendous and
automobile (or almost any city for very often is beyond the financial
that matter), the congestion of our power of the state or
municipality
city streets would be one of the to provide without charge to the
first complaints that such a driver user.
The
tariff
that
can
be
"On this point,
tial review.
existing debts of
paid and those
which the Authority will
hereafter incur for improvements
and other new projects
popu-
the
around
essential
persons.
one
day the surplus workmen, skilled
in trades which no longer need port by
a
subcommittee of the
them, have changed their tech¬ Congressional Joint Committee on
the
Economic
niques to maintain their "job se¬
Report declares:
"Perhaps the outstanding expe¬
curity."
They do not seek any¬
tive
to
were
-one
all
Authority
debts
ui
"profit" almost from the start at a
One or minimum toll of 350 whereas the
more new express highways is re¬
Queens-Midtown Tunnel for over
more
elementary needs becomes
satisfied, the task of industry in quired crosstown in the Manhattan a decade lost money at 250 bemidtown area to take a portion of cause of the
availability of the
finding new enterprises becomes
the traffic which now chugs a few free Queens Boro
Bridge.
increasingly difficult. There still
feet
at
a time across the city.
Our
exist such undeveloped enterprises
Private Enterprise Means Lower
and
they still pay off in large municipal government admittedly
million
better
clothes
been
gainfully employed total
destined
were
have
through the profit motive, to de¬
velop new industries. So far, this
has been
successful.
Today our
wea¬
vers
to
businessmen
If
„
°d
v
by persons
people is the greatest and, when capable of paying for the privilege
operate utilities than if done under government managements:
atomic development is included, of
using the roads.
Indeed, when
the fields which offer the greatest gasoline arid other auto taxes are
Decries fear that private enterprise will make excessive profit
possibility
for
expansion.
It
is
considered,
the
auto
drivers do
from utilities and says this attitude blocks progress.
noteworthy that that region where
Pay.,J.n * e aggregate^the cost of
Progress is painful and always many other comforts which our public power is dominant, namely, building
and
maintaining
the
arouses opposition from
Northwest,
is the
area
of highways except in a few situa¬
that mi¬ pioneer forefathers could not the
tions.
The cost of building ex¬
greatest power shortage. *
nority which benefits from the have.
existing
until
13
J ?}" corporation whose members are
,an(t the appointed by politicians who have
Francisco - Oakland Bay no direct financial interest in the
,
per¬
could be
Yet it is in some
of these fields preempted" by the
run
road
the
Sumner
?
-
now
«
formed
for well being of the
are necessary
such expensive
profit.
Public health, of and
course, is one of these.
Certain tp Pay their charges there are the
educational facilities and, of Pennsylvania
Turnpike,' the
course, police and fire protection
for
New York attorney, commenting
be limited to projects that
(1337)
the: Second
connect
with
under¬
Avenue
other Sub¬
Such a subway1 sysit is estimated, would cost
million.
Private
industry
built and ran for many years the
way
systems.
tern,
$500
subways and other transportation
systems in this city.
By a shock-
ing refusal to permit these transp0rtation systems to earn any return upon their funds, the subsystems and some of the bus
companies were forced into bank-
way
ruptcy and then at distress sale
and bridges, a bus ter- the
city purchased them for a
minal, airports and several other figure which is less than it would
enterprises. It is fine that such CQSt to build the Second Avenue
services are being performed, but
system
alone.
Eventually,
th<?
if the Authority had been a pripower of the people of the state
c'ity had to raise the fare even
to regulate, consequently operates vate corporation, there would long higher
than the
private ., com-
upon
tunnels
the same economic principles "fcince
have
been
lower tolls
a
in
great
the
demand
for
cannot be built in sufficient
there would be a recapture clause
a
private
num¬
panies had asked
tunnel.
corporation. Recent
experience has shown that tollfree bridges and express highways
as
There
Certainly, if a private corpoiawere
opeiatinte the tunne
tion
is
to do.
terrific need
a
for
an
jmprovement that private indus^
could provide. Yet because of
a >ear
th* pdvate industry will
make a profit out of the road, we
whereb> the city or state 0°uld
have bers to satisfy the demand by an
increasing number of auto-drivers. at some toiven date take
job — and quite possibly a more been extremely successful, five
over^th ^
t seriously consider allowThe states and municipalities just tunnel for the public;
But here
/
lucrative job —in another indus¬ moderately so, two will involve
Continued on page 31
do not have the funds to finance the tunnel will continue as a toll
moderate loss, four may possibly
try.
involve total loss, one definitely
So today the fireman who wants
to preserve an unnecessary job on is, and three are in early stages,
the diesel locomotive sees only the incapable of appraisal."
This'advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
It is significant that as the need
fact that he will lose his present
The offering is made only by the Prospectus.
source of livelihood,
that he will for new development by private
that
he
have
to
such
a
would
be
able
to
find
make a change, and that
change will probably not
his individual advantage. He
be to
does not
care
railroad
transportation
if
crease
that the demand for
made
would
cheaper.
not have confidence in
He
the
in¬
does
ability
of the industrial system to absorb
him into a new job if he is not
needed upon the railroads.
What
"Of
a
the
17
projects,
two
industry is increasing, the govern¬
ment, like a dog in the manger,
has
preempted
the funds
or
others,
such
fields.
ernmental
In
some
units
yet
lacks
of
job in
a
semi-public corporations to do the
job, like the Tennessee Valley Au¬
Common Stock
Industry Has
The Discipline of the Profit
ing
history to date has shown
industry has been
labor
supply
in
fields,
and correspondingly it is only be¬
cause of the increasing
efficiency
in old fields that
force
that
is
take
the
task
new
have
we
available
of
a
to
labor
under¬
making
new
devices to fulfill hitherto unsatis¬
fied wants.
A
nine
out
and
of
fifty
years
ten
every
ago,
persons
upon
Now it has become possi¬
ble, through improved techniques
in farming, for only 18% of the
employed persons to produce
farms.
enough
,so
food
to
feed
liberated
us
from
all.
the
The
farm
drifted into industry and to
performing of other services
that it is possible for the mod¬
have
the
so
ern
That
farmer
to
have
in
his
home
an
organization
long
necessity of mak¬
ing ends meet and from the disci¬
pline of the profit motive becomes
inefficient
strated:
railroad
can quickly be demon¬
Compare for instance the
losses
under government
the
large
War
World
of
^operation
II.
If
sufficient,
War
I
operation with
profits '
made
in
World
see
example is not
the
recent
New
York
"Times"
pares
the operation
report which
com¬
of the TVA's
friends
and
to
enjoy
•
,
\
share for each
will
3:00 P.M., Eastern Standard Time, on
to
subscribe
expire
at
at
April 11, 1951.
agreed, subject to certain conditions, to purchase
unsubscribed shares and, both during and following the subscription period,
The several Underwriters have
any
may
offer shares of Common Stock as set forth in the Prospectus.
Copies of the Prospectus may be obtainedfrom any if the several under¬
only in States in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.
writers
Wilson Dam, which to operate re¬
quires 200 men, with the hew 60,000 kw. steam electric generating
plant of the Central Hudson Gas
& Electric
Corporation which will
only 41 persons.
As a
yardstick the TVA is apparently
The First Boston
Alex. Brown & Sons
Johnston, Lemon & Co.
Corporation
Auchincioss, Parker & Redpath
Folgcr, Nolan Incorporated
require
as
obsolete
as
New
York
City's
tions should be performed by gov¬
ernment which are necessary for
his
;
♦
60,000 kw. hydro-electric plant at
to drive in his automobile to town
see
value)
that
piers.
to
par
Company's outstanding Common Stock are being offered the right
#24.10 per share for the above shares at the rate ot one new
five shares held of record on March 27,1951. Subscription Warrants
Holders of the
under
heating, running water, a
refrigerator, a radio, television,
telephone, and for him to be able
central
(without
r,
re¬
moved from the
private
hundred
gainfully employed worked
men
Motive
private
able to absorb the greatly expand¬
'
Washington Gas Light Company
organized
.
Yet
March 29, 1951
•.
gov¬
cases,
have
thority, of "yardstick" fame.
Private
'
r
122,400 Shares
the prospect
even
getting the funds to do
Accomplished
that
V
NEW ISSUE
has moved into certain fields and
But
examples
listed ad infinitum.
It would
seem
could
Goodwyn & Olds
*
Mackall & Coe
that those func¬
,
Ferris & Company
5
be
.
Robinson and Lukens
Robert C. Jones & Co.
14
(1338)
The Commercial and Financial
Chronicle
natural
INVI
on
=
By ROBERT R. RICH
BULL MARKETS
Vance,
go,
Sanders reports, this most recent
bull market is
Details of
0
and
program
prospectus
\
request
upon
1923
120 BROADWAY, NEW YORK
Looking at the
bull
Ed Hale
able
5, N. Y.,
knowledge-
a
about little known and
man
startling statistics,
with issues of equal quality but
selling at low price levels. At the
close of the quarter 80 different
stocks
reports
to
us
BULL
SINCE
No. of
Market
DIVIDEND
Days'
Duration
Gain
1923-29
2,136
3447*
1932-37
1,705
372
1,491
129
637
56
1942-46-
:
1949-51
SHARES
MARKETS
11123
Bull
THE MERIT AWARD of Standard
&
Poor's
"Advertising in Action"
has been given to National Secu¬
rities & Research for three pieces
of
sales
been
literature
which
dealers—"Inflation
and
"Dividend
Stock
Prospectus from your
investment dealer
;
'
Established 1894v
desiring
of
these
prize-winning
of sales literature should
Shares
for
COMPENSATION
and
changes in sales charges have been
made by Hugh W. Long & Co. in
widespread
sates
offerings
on
.
,
,
has
...
.
been revised
„.
include "breaks"
sales brackets
,
past seven years,
discontinued on March 13. A
licly offered Mutual Funds.
Our service
shares
to
needs
and
01
the
Funds
!
both
private
dress
the
0-
Dealer
Discount
$24,999
49,999
50,000-
99,999
___
_
100,000- 249,999__w
"250,000 and above__
special
institutional
investors.
Sales
Charge
%
new
,•
83/4
6
4 74
5
3 7a
4
3 '
27a
134'
& Co.
Members New York Stock
effective
and
&
Exchanges
March
26.
1951.
Copies
available from Hugh W. Long
Co., 48 Wall Street, New York 5,
a
but
reports
10
of
owned
.
the
for
*
'
PREFERRED STOCKS
(Series K1-K2)
all
Common
Stock
those
on
stocks
reporting
$8.01 and it is not expected
the
previous
year
and
with
period 1936-1939 inclusive.
were
amply
of
covered,
available
,
average
was
,
/,...
since
only
earnings
prewar
to
rates
was
practice
disburse
at
;>
on
least
..
/.,
Market prices at March 21, 1951
averaged about 6V2 times the 1950-
earnings
whereas
prewar
averaged about 17 times the
(Series S 1-S2-S3-S4)
CHANGES
for The
be obtained from
they
earn¬
years.
IN
Low
Keystone Company
of Boston
50
*-
Congress Street
Boston 9, Massachusetts
ac-
are in the best
complishment traditions of
Rubin's
sales
will
•
will
.
be
identified
of
"One most
Fund
Group Securities in the quarter
Feb.
28, 1951, comprised
(a)
profit-taking in sneculative
rails, (b) a trend toward increas¬
ing the dividend income of the
Fund, (c) greater industry diver¬
sification, and (d) liquidation of
stocks .which were
originally
bought
as
low-priced stocks
but
have advanced out of that
category,
and
at
the
south
using
are
income
their
replacement
,
WltL
<50TTTH><5
SOUTHS
is
growth
Main
important
of
,
progressing
P
uu
...
«
with
ST.
LOUIS, Mo.
—
Bernard H.
the
of
for
'prospectus from
your investment dealer
than
more
'
$800,000,000 in assets representing
funds
,
1
Vice-President and General Sales
f
'V'
th
mQre
| -/'■
PA.V^
or
PHILADELPHIA 2,
511000
certificate d holders
and.
shareholders of I.D.S. and its afmm+m »<>■■» mm
.filiates-7 the south-and, through*/-
i^esident^ of,
'""/"/
.
'■"■"/ /;
.
10southeastern,
^one are currently holders,
of
$326,687,897
certificates and
Grady Clark,, vestment
face
amount,
mutual
shares
0f
group
in
0f
fund
the
companies.
PUTNAM
in-
I.D.S.
FUND
than
More
Manager of I.D.S., was in Jackson^*
>43,300,000 of this amount reprea
~ one-day
— J~" meeting with resents Mississippi holdings; $42,gional distributors of toe company 500
000
Alabama holdings
$43,from Jackson, New Orleans, Mo900,000 Georgia holdings and $40,-
for
r~~
bile, and Meridian.
300,000
diversified
mechanization,
farming,
scien-
more
use
There
has
been
of abundant
an
/
holdings,
Mr.
ported
in
of
the
other
Florida,
Fund, Inc. voted
of
prise-profit
from
to
reduce
con¬
tinue to expand and prosper.
There are two ways for' cor¬
Kentucky,
the
the
March
on
value
par
capital stock
$5
to
$1,
13
V
per
share
the
Funr
of
decreasing
equity capital. The first,
by far the more
important source in the > past
distribution
several
at
which has been
share of
the
issuance
to
to, their stock¬
rights to subscribe
of
stock and by offering
equity capital to the pub¬
important
as
a
equity funds
source
as
to
years,
could
for
the
30,
1950, show that only >14%,
$800,000,000, of the
capital raised through security
about
issues
was
the
of
represented by
com¬
stock, approximately: 90%
mon
entire
balance having
through, the; sale
of bonds and notes, and the rest
through the sale of preferred
been
raised
,
is
It
it
is
obvious to
desirable
proportion
which
of
to
York
Shares
increase
that
the
financing
is
done through issuing
stock rather than bonds. If too
large
a
proportion
of
the
na¬
tional
and
quarterly
a
one-half
cents
share payable on April 20, 1951
holders
on
record
as
of
March
divi¬
per
to share¬
31,
1951.
recorr
H. K.
Marcl
on
Bradford, President
2-for-
a
Principal Underwriter
and
Investment Manager
INVESTORS DIVERSIFIED SERVICES
Established 1894
as Investors
Syndicate,
Minneapolis, Minnesota
Investment Registrations
NATIONAL
INVESTORS
PORATION, New York,
19
filed
with
the
Exchange Commission
ment
registration
000 shares'of $1
COR¬
March
on
Securities
an
par
and
invest¬
covering
400,-
value capital
stock. Underwriter and distributor
is Broad Street Sales
Corporation,-
New York.
Inc.,
conse¬
Bank
a
>500,000 shares of 20 cent
stock.
distributor
Stock and Bond Group
Shares
is
Institutional
and
ment
with
Shares,
Distributed
a
the
Ltd.
by
Northwest
HARE'S
March 26 filed
Funds)
Of
covering
par value
Underwriter
Pacific
Investment
registra¬
19
quences.—Massachusetts Inves¬
Group Shares
Insurance Group Shares
Seattle,
tion statement with the Securities
& Exchange Commission
common
Aviation Group Shares
(Mutual
FUND,
Wash., March 19, filed
TEXAS FUND, INC.,
Trust.
declared
fifteen
■
Investors
Exchange, has
director, of Mutual
a
ments, this may well result in
tors
has
of
of
Stock
Company.
economic
dend
Directors
STERN, partner
Co., members of the
savings goes directly or
indirectly
into
debt
instru¬
unfavorable
Mutual
of
Corporation, New York/
EQUITY
anyone
new
Board
Securi¬
ties and Exchange Commission
for the 12 months ended
;Sept.
or
New
been elected
-■
statistics of
the close of business
of Gruntal &
de¬
sired.
value capita
The
FREDERICK M.
be
new
be
par
shares of the Fund will reflect the !
2-for-l split.
new
new
$1
split, increasing the shares out
standing
and
halving
the
per
share cost. On April 2, the net as
set value and
offering price of al
reason¬
able
dividend
payments
to
stockholders. The second is by
holders
the
additiona'
one
31, 1951. This is in effect
corpora¬
above
of
stock of the Fund owned of
is by the reten¬
and
over
Dividend Notice No. 42 •/r
transfer taxes
porations to obtain this vitally
by
INVESTORS MUTUAL
al
needed
earnings
*
the
on sales and
repur¬
chases of shares of the Fund. Or
March 14, the directors voted «'
years,
>0 State Street, Bostoo
southeastern
Carolinas, Virginia and West Vir¬
ginia/it was stated.
concerning the vital
need of industry for new equity
capital if the American enter¬
of
Putnam Fond Distributor*. Inc.
Crabb said. Holdings ranging from
$11,000,000 to $37,000,000 are re-
STOCKHOLDERS OF Fidelity
re¬
cent years
is
Tennessee
oAton
increas¬
ing amount o£ discussion in
system
>
in¬
generation
manager
out the nation.!/
SS
Mr -Crabb
'
:
Street
^ew:theinvested
<* Minneapolis declared in'
<Jackson, Miss, on March 26.
Ti/r
fn
pro¬
in
part
"new
a
investment
JJjf .entlre natJOIl'
°r
'
-
,
Melvin is with Slayton & Company, Inc., 408 Olive Street. ^
capitalists" throughout the nation, it was emphasized
by Mr. Crabb, whose company, is
duce substantial long-range^ bene,
.
Qlavtnn
money."
ticularly
and
along sound lines which wil.pro-
~
Gor-
Shoreland
Thus the south is playing a
par¬
economic
virnRftiN
VIGOROUS
growth
economic
with
YYiui oiayiun
. (Special to the financial chronicle)
rates
and
-tun
Co.,
Building.
in-
their
wisely
&
'
THF
THE
investments
Stock
of
which
important immediate
increased
Graves
don
>
Crane
J.
...
has become associated
payments and per capita inhave
Fla.—Myran
..
our
result is that the south's total
invested
^
.
(special to the financial chronicle)
America's capital enterprise system work by backing it with their
these
timely
with
(
.
are saving more,
They are investing more, proving
that they are willing to
help
point of inter¬
be one of Ed
may
Corporation.
MIAMI,
capital enterprise system.
creased
Selected
bulletins^ Each
pieces
be
a
•
,
.
month
shares
stock.
...
stock.
THE
Priced
ended
Tke
suits which
higher than similar increases elsewhere. Another equally important
graphic presentation
a
there
or
J
,
a
economic
some
The
1950
COMMON STOCKS
may
of
est;
/
proved, in recent
their
Parker
entire
an
re-
come
ma-
lic. This second method has not
1950
at
people of
of $5 par
Underwriter is the
400,000
common
hard
steady' ductively. They
interesting
once
issue
a
and
The
Dividends
and
tion has produced benefits and
come
in-
$6.89, in
ings in those
Prospectus
will
1950
60%-:;
BONDS
(Series B1-B2-B3-B4)
,
on
stocks
common
The
paid out. The
-
new
At least
tions
40%
investing their capital
,
issued
now
1948, the previous peak.
figure is nearly four
times the $2.11 of average earn¬
ings per share in' the prewar
INVESTMENT FUNDS
of
tion
in
Certificates of Participation in
/IN
at
that the final figures on the re¬
maining 10 issues will change this
average figure appreciably.
This figure compares with $6.29
Funds
they
tend to continue to issue
flow
terial.
Fund of Group Securities, Inc. The
average per
share earnings for
were
-
were
high in 1950,.according to
new
annual
Custodian
that
•
CORPORATE EARNINGS
MUrray Hill 2-7190
ey stone
and
tific arid efficient
New York.
t
literature of
more
type
"Through
Uptown Office 10 E. 45th St., N.Y. 17
<
different
Funda¬
on
ering
demonstration
ingenuity
economic result is that the people
farm
Investors, Inc., incorporat¬
ing these revisions, will become
are
Curb
%
6'/4
prospectus
dramatic
courage,
work by the
of
producing
mental
Founded 1865
.!
"This
of
states
A
tration statement with the Securi¬
ties & Exchange Commission covy
of
Current Financial Comment
Department.
Kidder, peabody
demonstrated
"New sales brackets.
Ad¬
Manager, Mutual
INVESTORS,
Boston, on March 26 filed a Tegis¬
INCORPORATED
region
Selected American reports that it
has already initiated ,a program
^
indicated below.
as
"$25,000-
Company
meet
.....
Subscriptions
all types
covers
Investment
of
has
survey
that other types of sales literature
can
better serve those interested
in mutual funds.
two additional
m
information about any pub¬
/
to
The complete
schedule, given below, is effective March 26, 1951.
complete, impartial
the
Shares.
S^sr°Th^ngeZaiToi
charge/and dealer discounts
Write for
a weekly news digest
by Selected American
ties
response to a reported
this
stock,
par common
Crane With Gordon Graves
IM-
events or it will carry a specific
idea related to Selected American
directly to National Securi¬
& Research,
120 Broadway,
York 5, N. Y.
DEALER
New York
One Wall Street
Common
Those
SEEMED
write
New
CALVIN BULLOCK
I," "Bal¬
Folder,"
Fund
Paying
Folder."
copies
pieces
or
and
Investment
THINGS
Published
have
enthusiastically received by
anced
in
$1
Underwriter is Bradschamp & Co.
V
j
PORTANT,"
careful
OF
held.
were
"THESE
was
that:
PROGRESS
opportunity
1951,
Thursday, March 29,
.
.
000 shares of
manufac-
since
markets
Vance Sanders
our
correspondent and
CORPORATION
RESEARCH
of
progress
'&
SECURITIES
NATIONAL
hardly anything to
get excited about.
southern
Mr. Crabb said.
•
AS
of
turing, processing, marketing and
service
industries, the south is
proving that there is no ceiling
Mutual Funds
NATIONAL
and aggressive
resources,
expansion
.
Houston,
on
registration state¬
Securities
&
Ex¬
change Commission covering 300,-
RECTOR
NEW
YORK
LTD.
STREET
6,
N.
>■
.
Y.
Prospectus may be obtained from
the above or local dealer.
'
Volume 173
Number 4998
.
.
Commercial and Financial Chronicle
The
.
Babson
manufacturing;
in
Technology
Business and
Institute
in
*to mention a very
marketing
few.
■
—
Colleges
>■
tion
possible areas of coopera¬
are
workshop seminars for
management. These are cus-
top
By ROGER W. BABSON
"tom-built
tion to meet
Mr. Babson urges closer cooper¬
leges
of
higher
learning,
and
technical
colleges
on
study and
effected
research
by
"
and .government.
Closer
business
between
education
save
may
S. E Slock
.
SAN
election
statistics.
Vice-President
do
can
•
much
.
Yale University has
The
to
;
possibilities for businesscollegiate cooperation. Taxes have
become far greater than a legal
pointed the
can
become invaluable
Now
tions with its Labor-Management
build-
team
Center. Whole
country strong.
research
in
labor
new areas are
rela-
gether they
prac-
our
is
is
time
the
keep
and
located
Stock
Exchange.
HILLS, Calif.—Jack¬
BEVERLY
Incorporated
son-Anderson,
offices
with
formed
been
North Canon Drive, to
Jackson is a
learning
and,
the
at
111
LONG BRANCH, N.
vestment
Spring
name
J.—The in¬
of
busines
D
RESULTS AT A GLANCE
1949
1950
FINANCIAL.
"an
Net
d
u
s
in
hand,
also
Net
ION
OIL
can
COMPANY
Shares of Common Stock
of
Number of Stockholders
value
to the country
this
tional
na¬
Total Dividends Paid
REPORTS
ON
1950
OPERATING
Number of
emer¬
the
of
One
preserve
...
A RECORD
YEAR
Elemental
give financial aid to
young and needy potential busi¬
ness
executives studying in col¬
leges which are especially appre¬
Annual
and
In 1950
all-time
as
needs
/over
Many small and middlesized companies cannot hope, by
big
Business
be*- increased.
vides the
tion
7,756,709
6,943,995
347,554,939
331,441,120
>
\
;
i
.
130,514
161,963
2,321
2,363
,
$ 9,909,428
$
8,872,336
Lion Oil Company's gross income
and net earnings reached new
highs. Gross income from sales and operating revenues was $81,960,327
taxes
were
$13,988,245
or
1949.
$5.98
a
Net earnings after deducting all costs
share. This represents a 53% increase
earnings of $3.89 a share in 1949.
earnings resulted principally from
additional crude oil produc¬
and from substantial increases in the volumes of
refined and chemical
products sold. Gross daily crude oil production was equivalent to 101%
of the
/refinery's crude oil requirements during 1950 as compared with 78% in 1949.
Sales volumes of both petroleum and chemical products rose to new record levels.
pro¬
aggregating $4,389,056 or $1.871/2 a share, were
paid during
The regular quarterly dividend rate was increased from
share commencing with the second quarter of 1950.
$0.37^2 to
Cash dividends
funds; the colleges pro¬
vide the' research laboratories.
the year.
"
Needs Business
The College
.
567
5,427,210
7,854,224
pace
pooling their efforts with the col¬
leges, their usefulness and profits
can
m -
»
Employees—Dec. 31
^
/ 680
-
v:
Payroll
Increased
with the
business; but by
themselves, to keep
of
$ 3,511,186
brains
the
leges.
research
6,222
$ 4,389,056
—
compared with $65,605,838 in
and
facilities of the col¬
research
2,340,813
7,439
jgWjJW ff-ft ll-JJEi
needs such young men.
also
$41,373,180
2,340,833
Most
professional colleges of business
have this point of view. Young men
therein educated are of especial
value to business. They not only
learn specialized techniques; but
they also acquire a sound philos¬
ophy of American business. Busi¬
f Business
$50,972,353
business and
sympathetic \o its problems.
ness
2.54
$50,527,225
.
Producing Wells (net)
Nitrogen (N) Production—Tons
Number of
to
ciative of American
2.22
,
'
Total Refined Oil Sales—Gallons
private enter¬
is
/
;
.
$13,522,145
$58,582,040
Outstanding Dec. 31
Crude Oil Run to Stills—Barrels
soundest ways
prise
•'
Gross Crude Oil Production—Barrels
gency.
Roger W. Babson
Properties (Fixed Assets)
Total Net Worth—Dec. 31
greater
in
Working Capital—Dec. 31
make
themselves
$14,654,736
Current Ratio
i,- n e s s ,
working hand
$0.50
a
"
In these times of
zation
the
partial mobili¬
Capital expenditures during 1950 amounted to about $13,685,000 of which
development of additional underground oil reserves.
declining enrollments,
and
college
help
the
needs
$7,750,000 was for the
of
business. Education is the bulwark
during the year, additions to proved oil
greatly exceeded withdrawals. Lion participated in the drilling of 125
wells; 107 were completed as oil wells, two were gas wells and 16 were dry holes.
Despite record crude oil production
of democracy.
If America is to win
the battle of ideologies, it will be
reserves
not by brawn. The
private enterprise is,
therefore, closely tied to the sur¬
brains
by
survival
—
of
obligated to help keep our system
stills increased 12% over the previous
enlarged facilities were operated at near capacity
for sale exceeded 1949 volumes by
approximately 45%- The current outlook is that Lions sales of both petroleum
and chemical products in 1951 will be limited only by the productive capacities
of higher
of
of
vival
tions.
our
To
educational
survive,
During 1950 total refinery runs to
year. The Chemical Division's
and volume of products manufactured
institu¬
colleges
our
greatly need the financial support
of
business, which should feel
education strong.
today
Colleges
i
are
in
carious position. They are
'Of
manufacturing facilities.
;■
,
/
^
pre-
a
BY
victims
ORDER
OF THE
BOARD OF
*
DIRECTORS
war-time economy. With de¬
a
ti\itions and
operation, plus
creased income from
^inflated
/being
costs
of
buildings-and-land
poor,
T. H. BARTON
with income from endowments in;
colleges
adequate,
are
Chairman
having
going. Some are already
operating in the red. Many more
/rough
will lose money next year.
operative
venture
A
between
education
and
ness
is,
co¬
busi¬
therefore,
intelligent solution to many of
an
the
problems of both groups.
1949
1950
CONDENSED EARNINGS STATEMENT
Ways of Cooperation
Amount
For Years Ended December 31
•-
a
I.
Many colleges
vast
amount
are
of
already doing
technical
re¬
search for Government and Busi¬
ness:
Boston University in optics;
Georgia
Tech
in
Aeronautical
Engineering; University of Cali¬
fornia
in
goods; University of
Wisconsin
Stanford
in
Naval
in
Research;
radio; Michigan State
in fuel; Massachusetts Institute of
Sales and
Net Income Before Provision for Income
Taxes
Estimated Federal and State Income Taxes
Net Income
For
1950
Annual
Report, write Public Relations
Amount
Per Share
Per Share
$65,605,838
$28.02
61,011,682
26.06
53,283,067
22.76
20,948,645
8.95
12,322,771
5.26
6,960,400
2.97
$13,988,245
$ 5.98
$81,960,327
Operating Revenues
Operating Charges, Interest, Etc. (Net)
George
of I. George Weston & Sons.
business. Edu¬
cation
G.
Now I. G. Weston & Sons
Sutter Street.
in creased
for
in
Jack
to Street, Los Angeles 14, California. Weston, 210 Broadway, is now be¬
In San Francisco its offices are at ing
conducted under the firm
our
about
profits
214
i>
time,
same
bring
has
principal of the firm.
private institutions of higher
our
at
engage
business.
securities
a
the firm
South
640
at
member firm of the San
Jackson-Anderson, Inc.
R.
Stock
The principal office of
to-
harness
In
Calif.—The
Henshaw,
C.
William
corporated, formerly held an as¬
sociate
membership in the Ex¬
change.
teams any country has
ever kpown; the research facilities
of education and the wealth facilibusiness.
of
Exchange, was an¬
nounced by Ronald E. Kaehler,
President of the Exchange.
The
firm of William R. Staats Co., In¬
working
helpmates.
in
cisco
question. We have in the U. S. A.
one
of
the
strongest
potential
of
Edward
of
a
Francisco
Staats Co., Incorporated, to regu¬
lar membership in the San Fran¬
subject of taxes alone of¬
fers rich
ties
Exchange
FRANCISCO,
munication, corporate finance and
consumer
Financial Engineering
way
cooperation
and
accountants
their toes.
/
behalf of business
on
in
problems
-keep both business and education
and needy potential busi¬
executives. Cites
ness
specific industry and
marketing, advertising,
product development, taxes, etc.
-Refresher group conferences for
foremen, sales managers, bankers
and recommends financial aid to
young
dura¬
research,
of saving private
as means
institutions
short
rated, is the fourth corporation to
become
problems/Other areas
job evaluation, job satisfac¬
tion, corporation conduct, public
relations,
organizational
com¬
.are
Staats Co., Incorpo¬
William R.
Staats Member of
warfare, business decentralization
*
company
between business and col¬
ation
of
courses
tically unexplored—such as atomic
and traffic
„
Other
15
(1339)
$35.01
3,207,610
$
9,115,161
Department, Lion Oil Company, El Dorado, Arkansas
1.37
$ 3.89
of the Board
16
(1340)
The Commercial and Financial Chronicle
Predicts
Public
Utility Securities
Washington Gas Light and its subsidiaries distribute natural
the metropolitan area of Washington, including adjoining
territories in Maryland and Virginia.
The company (whose stock
on
the New York Stock
electrical
could
levels
gas in
is listed
The
.
ness
appliance
maintain
not
if
even
pipelines,
one
the
transmission
new
With the conversion to straight natural gas, Ithe company's
heating sales have increased sharply, since nearly all new
A
homes
in
the
area
now
from space
revenues
heating
they amounted
year
gas for
use
to
heating.
From 1947 to 1950,
than doubled, and in the latter
more
54%
of
total
Domestic
revenues.
4//..
^Temperature in
-
■■■•
—Heating Season—y
Above
Year—
Share
'i'-f >'
■
-
Earnings /v
1950
'
I
1
Normal
%
%
$3.21
5
1.68
16
1949___
1948
1947
1944
;
2
1941
~2
2.02
-
;
■
)
—2.24
*As
measured
by
>
since 1945 when the company has
average capitalization; during the
four years,
1946-1949, it averaged only a little over 4V2% return
(ratio of gross income to average
capitalization)..; In 1949, a rate
increase
was
obtained
from
Commission, and 37
the
District
cents
of
share
a
Columbuia
out
of
the
Public
$3.21
re¬
ported for 1950 reflected the
resulting increased revenues during
the first live months.
After May 31, the amount
earned under
the rate increase had to be
impounded under
court
hence
were
declared
not reflected in
the
before the U. S.
A
new
order
and
earnings.
Commission's order
of the record
abandoned property
quacy
The U. S. Court of Appeals
"invalid because of the inade¬
and
findings with regard
and the standby plant."
to
rate
The
of return,
case
is now
Supreme Court for review.
rate schedule for natural
gas purchases
by the com¬
pany was filed with the Federal
Power Commission
by Atlantic
Seaboard Corporation (Columbia
Gas subsidiary)
early in 1950.
The company, in
proceedings before the FPC, has protested this
increase, which it estimates would increase its natural
gas
by
approximately $1.5 million if the new rate
throughout 1951. The matter is still before the
is offering to its common stockholders
subscription rights in the ratio of l-for-5.
27
that this
follows:
were
in
cost
effect
FPC.
The company
March
financing is completed, capitalization
will
be
of record
Assuming
about
as
Total
45
13
22
Assets
costs,
$58
include
stock
some
ana .amounts
issue at
estimated
S25
per
%
$26
*19
new
100
excess
National Utilities
Company of Michigan
Common Stock
available
FOUNDED
on
the
Association
in
present mandatory limita¬
will curtail by man¬
exceeded
normal
could
be
W
QUOTED
request
1890
Company
Incorporated
37 Wall
Street, New York 5, N. Y.
other
increased
be
costs
during
is
declining
and
the
production
increased
mean
plant
Inflation
tion,
F.
—
for
A.
Harper—The
Economic
Educa¬
Inc./ Irvingtorb-on-Hudson,
York—paper—single copies,
of charge; quantity
prices on
New
free
request.
Why the appliance industry
be
to
selected
for
Cream
over¬
this
special
of
Your
Market,
The—
Analysis of current markets based
advanced
on
—J.
treatment is not clear."
not
demand
tion
plants
ceed
1950 levels.
at
comfortably
can
This
that
means
future time when
some
ex¬
we
re¬
Walter
Speculative
Stock
send
conditions, com¬
petition will become very severe, folder.
continued.
Merits of
Common
Warrants—Sidney Fried—$2
—Dept. C, R. H. M. Associates, 220
Fifth Avenue, New York
1, N. Y.
—
turn to peacetime
and
for
or
free
descriptive'
tj
indeed.
Mass production plants
only operate efficiently at
high levels. There will be a battle
can
for
the
markets
that
will
SEC Executive Joins
mean
Wiesenberger & Go.
elimination of the weak, and nar¬
and
over
profit margins."
row
-7
Reflecting the sharp increase of
keep from starving..- High
purchasing power is what makes
high living standards. If the ag¬
public interest in the purchase of
gregate national purchasing power
company idea,
Arthur
Wie¬
common
quent
living standards—if this high pur¬
chasing power and high produc¬
tivity can be devoted to high liv¬
ing standards. However, if we are
going to put a substantial .part of
our
and
manpower
into
sources
material
specialists
the
re¬
don't add up to comforts of life—
if
and
we
going
are
to
Investment
large part of it through taxes,
down goes high purchasing
power. That means that there will
a
then
be
less money for other than, es¬
sentials,
for
and
the
that
trouble
means
appliance
manufacturers
forecast
my
even
Steel,
sharply
nickel,
tin—these
which
appliances
indicates
These
defense
our
made.
had
orders
in
common—while
are
prohibited, the manufacturers
been
certain
allowed
the
as
to
on
440
alysis
me:
A
looks
definite
strength
—
43
graph,
trend of
actual
a
is
analysis
and
complete
market's
$1.00
—
week
with each copy
basic
the
-
an¬
Dept. 4-A, In¬
Research Company, MihBuilding, Santa Barbara, Calif.
Dealers
—
1951
of
North
edition of
com¬
plete directory of stock and bond
in
houses
—
Seibert &
gen¬
New York
the
United
Fabrikoid
—
States
and
like
reduction
appli¬
this
in
ress,
to
in
San Francisco—Dept.
of Information, Radio Corporation
sharper of America, 50 Rockefeller Plaza,
reduction in the last half of 1951. New York
20, N. Y.—paper.
probably at least 40% below the
duction
in
1951, and
the
second
further
a
quarter of
and
Introduction
alysis
half of 1950.
"We
cannot
scale and
civilian goods
are
today.
rearm
keep
normal—rate
If
our
of
as
on
a
1950—or
world conditions
we
have to choose
to
Statistical
Dixon & Massey
—
An¬
Mc¬
Co., 330 W. 42nd
Street, New York 18, N. Y.—$4.50.
even
of
—
Graw-Hill Book
large
production
irom
,
Modern
Handling
stitute
Methods
—
—
that
post
to
become
asso¬
ciated with their firm.
Mr.
Lobell's
Arthur
association
Wiesenberger
&
with
Co.
is
planned to equip the firm further.
in its expanding advisory activi¬
to
investors
their
funds
in
the
and
the
handling
growing
of the information services
scope
provided by the firm through its
monthly bulletins, special reports
and
annual
ment
editions
"Invest¬
of
Companies"—widely used
the standard reference manual
mutual
funds
vestment
At
the
and
closed-end
as
on
in¬
companies.
SEC
adviser and
Mr.
Lobell
consultant
was
an
special
administrative
on
policy, legal and
projects in the field
of financial
investment generally includ¬
ing administration of the Invest¬
Company Act. He joined the
ment
SEC staff in
on
1939.
committees
He has served
conducting indus¬
try-wide conferences and studies
Co., Inc., 25 Park Place, on amendment of the
Securities
7, N. Y.—$10.00.
Acts, and is the author of a leading
The—E. C. Anderson—reprint
sociation
Ex¬
Herbert D.
of address before Patent Law As¬
pro¬
Nathan D. Lobell
Securi¬
and
and
"Security
Business Side of Scientific Prog¬
the
Execu-
change Commission, has resigned
technical
vestors
hard to get and at best
business
to
trend
Canada
of limited application.
"So the outlook for
-
primary
copper-brass restricted, substitutes
are meagre possibilities.
Plastics,
restriction
investment
week
a
stocks
America"
under
the
applying
leading
"Frankly, this has not been too
helpful. If one metal is restricted,
we
could turn to other metals,
but
with
steel, aluminum, and
are
on
of
position
for
individual
to
current
ran
not
of action
showing present
market, and
quantity of end-
in
Discusses three
—
the
of
product.
erally,
Profits
ties
ties
plan
groups,
metal has been limited rather than
limits placed
3x5
an¬
that
Adviser '
v e
of
of
some
consumption
bell,
t i
cific
a
uses
use
for
basis—included
and
Ex¬
Nathan D, Lo- ;
basic principles of correct invest¬
ment procedure and outlines spe¬
programs
thing
one
—
chart
these
program—both
and V
Curb
change
Stock Market
also the basic elements
are
:
Ex-
nounces
Planning
curtailed.
are
in
>
;
to the
copper, aluminum,
the materials from
are
our
Speculation
prefiguring returns
on
dividend paying stocks—$1.00
—Thomas Pub. Co., Box
190, Batavia, N. Y.
1950," Mr. White stated,
more
conse¬
investment
of *
the New York
Convertible Bonds & Preferreds—
"it is indicated that supply might
be
the
the
in ;
Stock
Sidney Fried—R. H. M. Associates,
Dept. C, 220 Fifth Avenue, New
York 1, N. Y.—$2.00 (or free de¬
scriptive folder on request).
pocket
that demand would fall below the
levels of
&
PDQ Dividend Indicator
and
television people and even
trouble for the automobile people.
"While
and
of
and
change
for
pay
*
field
members
materials—which
war
stocks
growth
senberger &
Co., leading
record-breaking points of the last
J. G. White &
because
can
49 East 33rd Street,
16, N. Y.—cloth—$7.50.
Foundation
expanded, efficient, high-produc¬
appliances necessities,"
White
continued,
"but
it
ance
Memorandum
Na¬
Instal¬
of
old economic laws, but I feel that
our 1950 volume of appliance sales
while
•
also
This
Zimmermann—Harper
;Brothers,
—
have
being amortized due to the
changeover to nat¬
if considered intangibles and omitted
from surplus these
common
equity to about 25%.
'
Washington Gas Light has
recently been selling on the board
aiound 26.
Based on the $1.50 dividend
rate (paid since
1939)
the yield is about 5.8%.
SOLD
n,
production that would have
been curtailed by the laws of sup¬
ply and demand," Mr. White said.
"The mandatory program will af¬
fect us more drastically than plain
ingenuity
reduce the
•
o
orders
aluminum
share.
$6 million items
reflecting
BOUGHT
the
Conference
stockpiling and production.
"The steel,
copper, nickel
33
ural gas,
would
t i
a
date
of
"
Millions
'"Includes
in¬
is high this nation can have high
"degree days."
Last year was the first
year
been able to realize 6% on its
Utilities
in¬
and
"4
1943
1942
'
4
2.08
serious
&
New York
1950 census figures
Thompson Company,
Turning to the post-emergency 420 Lexington Avenue, New York
outlook for the appliance industry, 17, N. Y.—paper.
Mr. White said: "The productive
-Progressive Investing Without
capacity of the appliance industry
is substantially in excess of. the Forecasting—Trend-following for¬
mula for long-term
operation—$5
1950 production. In that year dif¬
for four months, or
$1 for next
ficulty in obtaining steel was still two
discussions
Baker's Invest¬
a
limiting factor.
Given ample ment
Timing, Port Huron, Mich.
supplies of* raw materials, these
purchased from income
.
labor
materials
Resources and Industries
Manufacturers
above that necessary to keep warm
5
■
most
have
raw
to Dec. 31.
up
World
—Erich W.
head.
March 14.
on
creases
to
Irving Trust Company, 1
Wall
Street, New York 15, N. Y.—paper.
Electrical
nevertheless is true that they are
17
2.10
:
"The
tion
Mr.
1.88
1945.
Chicago
and
creases
of
Bureau of
Washington
Trust, Custody and Investment
Services—Personal Trust Division,
only to adjust¬
direct
actual
Railroads,
Railway Economics,
6, D. C.—paper.
schedules
told
Bankers
for
(Second
of the National
tional
American
Britain
Association
—
period
"We call
1
1946
:
Below
Normal
:..."
•
White
Credit
ment
sales
(including space heating) accounted for 80% of 1950 revenues,
while commercial and industrial sales were about
16%.
The heavy volume of sales for
house-heating has made the
company's earnings somewhat vulnerable to warm weather.
Fol¬
lowing is a table of share earnings on the common stock
showing >■;
the relationship:
L.
1950, subject
ment
Britain,
and
Great
past President
Associ
Richard
space
L..
Presi¬
Conn.,
of
system
the-high
New
directly with the Texas fields through
Tennessee Gas Transmission, and the
other carrying gas from the
Appalachian region. They are also tied in with the lines of Texas
aspect of the ap¬
one
30,
in¬
dent, Landers,
Frary & Clark,
connected
Eastern Transmission and with
Transcontinental Gas Pipe Line.
"There is
taxes
White,
also the first to convert to straight natural
gas in 1947.
Nat¬
gas
is obtained under contract from two Columbia Gas
ural
you
Richard
and
The company was the first
company on the Atlantic seaboard
convert from manufactured
gas to mixed gas in 1931; and it
toasters,
costs of living,
creased
nearly four times since
and
tanks
and I will both choose tanks.
will
with
fall
in
Year:. 1949)
pliance business that troubles me
greatly," Mr. White said, "and
that is the proposed price roll¬
back.
It is reported for release
this very week. The program is to
roll back prices to those of June
pliances
Exchange) has been in business
1930.
was
1950
were
available because demand for ap¬
over
100 years.
It has paid dividends for 98 years (except for
two Civil War payments which were
delayed)—the longest record
for any utility company.
Due to the rapid growth of the Federal
Government's activities in the capitol, the company's sales have
increased over five times and its revenues
to
tions
,
Transport- Opera¬
American
between
busi¬
its
materials
j,
Nationalized
demand.
Washington Gas Light Company
Yorkvll> N. Y.f
—cloth—$5.50.-
-
high cost of living and increased taxes will cut down
By OWEN ELY
Thursday, Marcfr~29, 1951
.
Fifth Avenue; New
Dropin Electric Appliance Business
Richard L. White tells National Instalment Credit Conference
of ABA
:.
of
Materials
Material Handling In¬
Prentice-Hall,
Inc.,
70
article
out
on
his
ciated
that subject.
career
he
has
Through¬
been
asso¬
with
developments in fi¬
nancing and. reorganization under
the Utility Holding Company Act
he
and
has
summary of
recently published
a
15 years of adminis¬
tration of that Act.
In addition to his regular duties
Mr. Lobell has, in recent
months,
assisted
Senator
Lyndon John¬
son's
tee
on
in
Preparedness
Sub-commit¬
the
preparation of reports
the progress of industry in the
defense mobilization effort.
Volume 173 ^Number -4998
v
.
The Commercial and Financial Chronicle
.
(1341). 17
*
*
•
.
The
Impact ol the
put of
j
Mobilization Speed-up
The
the
increase
in
production
has been achieved in
Asserting boom
business activity and resultant rise in
in
what.
producer
buying than to defense orders, Federal Reserve economist finds
first impact is return of seller's market and rapid rise in in¬
comes/ accompanied by expansion in private credit.
Sees
uncertainties in future marketing situation,, and-urges, market¬
ing executives understand and cooperate in determined efforts
prices has been due
to heavy consumer and
more
These
are
days when events
swiftly and Federal officials
late
at
night.
Conse-
work
•
poses.
life
ness
in
now
are
true
goods
most directly
defense : activities.
by
activities
Such
absorb
durable
consumer
others
and'
affected
and
producers
for
,
distributors of
ways
do
-
or
goods to offer
customary
civilian
in
sale
markets
home
at
unusual
abroad,
and
especially
changes,
price
have also nresented
for materials
trols
problems and price con¬
call for special study.
now
Business executives in this
country, however, are used to
dealing with uncertainties of one
sort or another with a flexibility
of
thought
and
action
which
is
perhaps unique in the annals of
management.
This conference, I
take it, is called in that spirit, to
exchange ideas concerning present
uncertainties and the best ways to
them.
meet
summarize,
And
in
as
is
to
words
as
part
my
few
the defense
program;
current and prospective economic
developments; current and pros¬
pective control policies, and the
impact of all this on marketing.
the
of
Back
lies
course,
which
situation
defense
international
an
is
program,
perplex-
more
uncertainties
The
ing.
area
I shall not tackle.
in
that
It may be
noted, however, that the range of
possible developments in Europe
and
Asia
is
considerable; that
since the Korean outbreak shifts
in
military and diplomatic posihave had important immediate
repercussions—on
private
as
well as national policies; and
that
judgments
concerning the
tions
of
effects
new
international
should
velopments
be
dese-
very
lective
Rise in Defense and Non-Defense
Demands
International developments since
have beeg
highly stimulating in their effects
June
In
this
generally
economies
the
on
of
the
from
out¬
lion and the rate of defense
and
foreign
aid
combined
has risen about three-fourths.
this
high; in
consumer
In
early stage of armament ex-
of
i";
J
greatly accehtiK
after late June. ^Prices of 28
fourth quarter were
one-third? higher than before the
above a year ago. All com-
extraordinary increase of business
was
outbreak-owing
relation ;to
moditics at wholesale are up 20%
and consumer prices for goods and
1950
from
to
the
the
second
quarter
present time, $30
♦An
address
by
Mr.
Garfield
at
the
j-servjces
up 9%.
The rise for
goods alone was about
are
consumer
12,1951.
;
u
the
to
current outnut
at Prices bid up in the process.
Banks have not provided a<*difunds to the Federal Government
nartlv
because
in
this
and in some lines the more rapid
ernment partly because in this
rise in prices than4n costs. Rising
early, stage of the armament pro-
farm
gram
prices
have * been
reflected
increases , in Federals cash
outiays-which lag behind defense
■
January, consumer demand ap¬
parently has shown some abate¬
ment; nevertheless, in February,
dollar
sales
recent
has
at
department stores
above
17%
were
been
for
durable
shown
greater
more
concern
§h
%
I
demand
generally has
goods
much
the period
consumer
nondurable
f
and
ago
automobiles
In
strong.
since last June
year
a
for
demand
than
increase
reflecting
pOSSible
over
goods,
b
'
TH ANNUAL REPORT
HIGHLIGHTS OF
Svi
f|::
shortages of these items.
<■>
M
Business
Increased
Buying
Ever since the Korean
business
been
has
y.-y.
qutbreak
in
large volume—to meet
very
heavy demands of consumers, for
their
to
ffc
f
or
future
use;
*° ir*crease plant capacity. In the
f°urth quarter of 195°, when
re*ail saJe.s slackened, business
succeeded in accumulating invenannua* rate
JF;.
(lua^er inventories
are
being built up. Demand
for Producers equipment, includagricultural machinery, has
been very strong and, currently,
expenditures for producers'equip™nt ar* probably running nearly
above the second quarter of
'
a tremendous increase for
short
«
W
business inventories; and
current
build up
E
placing orders
a
time.
New private con-
struction outlays are up less than
10% in this period, but an ex-
traordinary level had already been
peached in the second quarter of
M
I
I
I
fyy
THE PRESIDENTS LETrER...While the
m
Rise in Production
Generally strong demands from
consumers and business buyers as
well as from the government have
resulted in production increases
which
not
have
been
sufficient
to
prevent
we
arc
confronted
now
was
paring ourselves for
i
most
I
was
II
for any
every
I
best
a war
I
%■P'
m
sharp
designed to make
us
unready and unprepared
such crisis... We have been "eating up our seed-
as
at
are
that
nowhere
time.
near
At
as
steel
high
mills,
production
is
higher than in the
I
our
self-respect., .We
can
and
can
awakened,we
bear
vast
t
*
PLANT EXPANSION...Investment in the
latent but
during the
year
or
9.7$. Present
capacity of 330,000 kilowatts.
PLANT BUDGET FOR 1951...
Expenditures for plant in 1951
are
potential
leader¬
,
presently manifest either in America or elsewhere
$60,584,209.
in 1950 before
giving effect to
plant retirements. Approxi¬
mately $44,500,000 of
new
capital will
he required for the 1951 budget,
GENERATION...Total energy
creased
threatened world.
at
with $60,940,651
u.»
^
But to do this will require a sjdritual
fortitude and a quality of leadership, which
estimated
This compares
net
A a,*
march of progress.
our
of $52,640,435
plans contemplate additional generating
ship, permit us to save this civilization and eventually to resume the
in
Company's
plant at December 31,1950, was $594,865,096, an increase
awaken,
bring to
which should, under wise
a
sold
and
6%
over
transmitted in 1950 in¬
1949. In the last five
years,
generation
\ystem
by steam plants has increased from 22^ of total
was
an
increase of $4,529,842
revenue was
over
$106,-
share of common
charges including preferred and preference
dividends, compared with $2.99 per share
0*
generation to 43^. 1
1949. Net Income
$19,018,005, equivalent to $2.97 per
COMMERCIAL ACTIVITIES...70,253 meters were addedx
to our
system in
1950, serving over 60,000 new homes, the
equivalent of a major new city with a population of 200,000.
in 1949.
Condensed Consolidated Balance Sheet
m
$594,865,096
Electric Plant.
Investments and Other Assets.
Current Assets
Deferred
Charges.
Capital Stock Expense
LIABILITIES
December 31,1930
ASSETS
I
rowed from banks.
strength, wisdom and courage
revival,
of Cumula¬
4.08^ Series, $25 par value, was
May, 1950 for $25,010,000, and $12,000,000 was bor¬
American individualism—our
stock after all
m
in
and under¬
m
i#
tive Preferred Slock,
mining our basic free institutions,and
are not
m
FINANCING... An issue of 1,000,000 shares
the
for survival, but we have in al¬
self-reliance, self-discipline
m.
aircraft industries and output of
ordnance in the machinery in-
we,
important respect followed that course which
corn," living up our capital,weakening
I
wk
m
compared with war highs, nondurables are up over 10% while
durables are down 25%, and to*al industrial production is 10%
lower. Durables are below the
wartime peak chiefly because activity in the shipbuilding and
peril with
developing,
people of the United Stales, not only have not been pre¬
but
substantial
which
m
* year»
factories and lumber mills
March
case at c«t-
during the current quarter than are nearly one-third higher.
This, in brief outline, is the production—so far have been gen^be, second quarter of 1950,
Spectacular advances in prices story of economic developments crally matched by increased revreflecting a rise in physical vol- of imported materials continued so far since the Korean Outbreak, enues.
The increased revenues
as weU^as^in retau prices. through January and ]evels except for some reference to the have arisen out of bigger incomes
Sales of apparel and food reached
Continued on page 24
new
highs. in January.
Since reached then have been generally part played by fiscal and mone-
dustry
1
larger inventory
tectlve bu^ng of current output
.
323,829,
ditures
of
have risen~9%
year,ag°- 'Corporate profits after
-from the mild recession of early
INCOME AND EXPENSE...Gross
15%, in the annual rate
national product expen-
finance
to
holdings, which in the
M
or
summer and real estate loans
up 10%. A very substantial part
of the rise in business loans has
-
t
One important result—and cause;—of all: these developments has been
U
gross
last
..
,
t
this
lion,
common
Expansion, of Income
.
major fact—a larger share of
immediate
impetus
to
in-
buying has been animated by
prospects of rearmament, rising
incomes, shortages of goods and
advancing prices.
Of a total increase of something over $40 bil-
ad-
The prices'ad- boufs have risen somewhat, and resulted from transfer of governNbegan just*, about a \year;p
.Y1 because- average hourly ment stocks.to private hands,, but
ago, reflecting persistent recovery fa™in^s
since;a jn most instances represented pro-
October. It has since shown little
further rise, as current capacity
the
levels have been reached in nucreased
production
and
higher nierous lines. As compared with
prices since the Korean outbreak 1940, the current level of output
has
come
from
increased
con*s UP 70% for nondurable manusumer and business buying.
This factures, 90% for durables.
As
a
marked
by the large holdings
liquid assets accumulated dur-
of
matter of'record.
Price advances. Industrial production—output at factories and mines
have been —increased from 199% of the
in current 1935-39 average in June to 217 in
lays and these orders
an
important factor
markets.
Nevertheless—and
facilitated
as
>vance
Total ex-
income.
been
ing the war. BankloanritTprivate
borrowers have risen rapidly, with
husiness loans up a third since
with
stocks.
./ r:
has
commodities,
well
ton, ani ^ oftec £arm pcoduete
pansion, defense orders
have
increased more sharply than out-
is
and Capital Assets
boom
by the ready availability of credit
The extent to which
^?ai"-60%
world.
IV2
to about 2Vz mil¬
expanded
million persons
lays
.
The
sum-
;
country the armed forces
been
have
:
outbreak., In the r®cont period,
as last summer, buying has been,
so
last
1
.
w
'
Borrowers
have been rapid in markets
f°r capital assets as well as for
real property values, and
.
types
Expansion in Credit to Private
as
bassnnilar^
possible,
of
Buvinff Waves*
;
vlrious
by controls of
be
varices for farm land values, urban
is
higher than
.
pound
a
announce-
would
more
bttowta? might StaSEtobenea~%h\£r 12%. Prices received by farmers in rising farm income.
be used to produce
Rapid
I
!
ouying this iwinter ^ted
Vor?sumer
will..-unusually
soon
important amounts of ma-
^parity
for
.
:><■
This is espe-u
greater than usual.
cially
some
:
-
-
Consumer
;
some-
Risc in Prices of Commodities
i
~
billion,, or nearly three-fourths,
has been for non-defense pur-
quently, the uncertainties of busi- ;
...
no
tary -and credit developments and
mer
and
employment
million
3
year ago.
,
prevent further price advances.
to
move
,
Nonfarm
about
now
a
that
Price advances since last
part by increasing em-
although hours
productivity have also risen
however,
stockpiled at the sharply advanced
prices reached earlier,
in
con-
ployment,
Tin,
one-fourth since the
or
generally since last
economy
siderable
System
'
.
ment
summer
Economic Research, Federal Reserve
on
1
has dropped over 40 cents
is
els.
By FRANK R. GARFIELD*
Advisor
durable goods
consumer
sharply and close to peak lev-
I up
.
period by 20% or .more., Out- .maintained since.
/war
,
,
»
9,283,296
39,695,701
Stated
Capital and Surplus
Bonded Indebtedness
Notes
Payable
.
.
.
.
,
.
, ?
►
,
.
»
,
......»•••••
4,992,408
Current Liabilities
2,747,875
Depreciation Reserve
..........
.
Other Reserves and Liabilities
TOTAL LIABILITIES
.
....
$273,494,076
203,000,000
12,062,467
39,284,833
113,336,567
10,406,433
$651,584,376
18
(1342)
The Commercial and Financial Chronicle
Economic Mobilization
Economist
Sulphur Springs, April 6
to 8
tive
and government
days
together
The
will spend three
to
consider
so
"The
been announced
March
versity
the
of
Chicago Law School
The conference, sponsored by the
Law School, will be held at the
Greenbrier Hotel, White Sulphur
Springs, W. Va., April 6-8.
:
that
by
slogans.
It is
creating
our
single
a
meet continuous-
can
we
siioiuu
oe
to
auie
an
of
area
agreement
and
for
program
For
will
which
consider
mobilizing
successive
tempts
wages,
the
1949
to
first
prices
and
the present tax policy and
the
and
Two
will
at¬
control
the conflict between the
Federal
sessions
be
devoted
the
to
to
Board.
the
on
a
cover
the
*
from
the
im¬
experience
-
in
their economy.
Coming from
land will be John
and
V. Cohen,
State Depart¬
Beardsley Ruml; W. Ran¬
dolph Burgess, National City Bank
| of N. Y.; F. A. Hayek; Leon Hen^ derson; ^Prof.
Ludwig von Mises;
1 Philip
Cortney, economist and in-
Sen.
Joseph
as
a
whole
It
will
be
noted
that
and -two
western
carriers.
At
or
the
less.
material
costs.
showed
wider
be
will
There were
Nine
carriers.
were
14 of the
and
Western
C.
40.8%
,___
26.9
30.5
31.4
20.8
44.0;
30.7
32.5
24.1
29.6
12.2
19.1
28.6
22.4
32.1
27.0
18.1
22.9
25.4
13.5
35.8
Chicago, Burlington & Quincy___
25.2
13.9
18.7
*23.1
11.4
29.2
21.9
10.3
25U
21.7
16.1
1714
21.7
14.1
27.7
21.5
13.3
25.0
20.8
13.0
19.9
St.
Seaboard
Great
New
1
Times
:
__
Orleans, Texas & Mexico.:.
'
h c o
New York 4, N. Y.
Telephone, JjgO.jyling Green 9-6400
Nat'} Assn. Securities Dealers, Inc.
•
20.0
9.4
14.9
19.5
14.1
19.0
19.5
12.3
15.6
19.4
13.8
27.2
19.3
12.9
14.8
18.6
15.0
11/4
18.5
19.1
23.1
18.2
8.8
21.5
Wabash
18.0
Chicago & Eastern Illinois
17.8
Delaware & Hudson
17.6
9.7
Erie
17.4
8.6
20.9
16.7
10.8
19.8
16.6
16.0
18.2
15.9
11.1
25.3
15.3
10.5
17.5
13.7
8.1
19.1
Pacific
11.4
4.1
18.5
13.1
5.8
20.2
Atlantic
12.7
7.6
20.5
Baltimore &
&
—\
Ohio
12.2
Maine
Central RR. of New Jersey
N. Y., New Haven & Hartford—•_*
Minn., St. Paul & S, S. Marie——
Pennsylvania
New
York
Central of
Central
•
Georgia——-,
Chicago & North Western
-
•
<
10.1
21.6
11.3
7.1
19.3
10.9
7.0
11.7
10.4
6.4
16.0
10.0
7.3
11.$
7.6
5.4
20.0
6.9
4.9
14.7
6.5
0.6
19.9
6.5
■
1.2
a
/
since
one
is
will
be
during
J
«;
for
overtime,
incentive
related developments
higher wage incomes
higher costs to textile
and
mean
and
also
companies."
that
in
the
The
World
Little
in
speaker
War
Steel
increases
II,
noted
although
Formula
base
rates
limited
to
15%,
hourly earnings in all manufac¬
turing industries rose 50%, while
weekly earnings increased 75%:
past
"Prices of all textile products
have risen 35% at wholesale since
last June. Prices of cotton
tories/'
have
goods
'/V-■
■;
that, "De¬
risen
rate
of
spite
twice
price
sale
the imposi.ion of general
controls, and some tempo¬
rary hesitation in prices, higher
prices seem probable under the
impact of our defense program.
Higher wages, large government
budget deficits later this year, a
political farm policy/ and related
will
pressures
combine
to
The major
inflationary
push
sources
War
II.
has
been
The
period
since
characterized
creases of
more
business
loans
the
16%
prices.
more.
This
more
than
was
rise
All
in
all
whole¬
wholesale
prices
have
exceeded the 1948 'peak
by
10%, while textile product prices
23%
are
levels.
and
above those earlier peak
Sharp Increases in
wool
cotton
prices have/contributed
significantly
have
to higher costs and
helped to push up the prices
of textile products."
Arnold Green to Head
Dept. in Bache Branch
Korea
by
in¬
than $8 billion in
by
somewhat
increase
since
pressure
the
banks,
Bache & Co.
announces
pointment of Arnold E.
the ap¬
Green
as
largely to finance inventory ac¬
cumulation; more active use of
existing deposits, and a moderate
Manager of the firm's Investment
Trust Department in its
Chrysler
utilization of liquid assets
by con¬
sumers.
This latter development
Mr. Green is a graduate of- the
Wharton School of the
University
is
illustrated
by the net redemp¬
more ihan $500 million in
Series E Bonds and the reduction
of
$175 million in postal savings
deposits in the second half of
1950."
More Than "Jaw-Bone
Control"
Needed
The N.
sized
that
it
Professor empha¬
would require more
anti-inflation
ments
program.
con¬
inflationary
farm
endorses.
must
be
present
raising
wage
stabilization
taxes to
are
not
assure
on
a
to
a
our
the
wage
Higher
wage costs
pay-as-you-go
basis
and general controls over
credit to
restrict
are
'
inventory
accumulation,
additional necessities."
World
War
II
Prices
'
Rose
speaker
courses
states
our
that
it
plans
"Despite price control,
out
many
that,
prices
is
to
merchandising and
Funds
Institute
Finance,
suited
"consistent
broaden
bur
promotion
as
an
to
the
of
investment
needs
of
a
large group of potential investors."
Schreier Named Trustee
Henry
C. Schreier, a limited
partner of the New York City in¬
vestment firm of L. F. Rothschild
& Co., has been elected
a trustee
of
the
Queens County Savings
Bank, Flushing, Long Island, N. Y.,
according to an announcement by
Joseph
Upton,
President.
Mr.
Schreier has been associated
with
F. Rothschild & Co.
since His
L.
from
Yale
in 1920; He became
pointed
in
making the appointment, the
graduation
Despite Controls
The
with
medium
program.
that
firm
adequate
convert
Exchange
Banking and related subjects.
During the war he served with
the Navy and was stationed in
Africa, the Philippines and Japan.
price
policy
Wage control
tightened to
Stock
where he took
"Amend¬
required to the Defense
Production Act to eliminate the
which it
of Pennsylvania and also
attended
Columbia University and the New
York
Mutual
are
'
Building office, New York City.
In
Y. U.
than lip service and
jawbone
trol
to
effectuate
an
.
t
not
Steadier work op¬
earners.
plans
pres¬
tions of
17.4
in¬
in other industries.
portunities,
will
during World
.
create
wage
,
stabilization
does
income
stabilization
wage
with
Korea have been the
expansion in
bank credit and the activation of
the inflation created
/
the
industries
year, | while sales had risen only
29%. In contrast, for all
industry,
sales have risen more than inven¬
prices higher.
f
for
The
in
wages
program,/will
pressure
mean
funda¬
the
in
"Wage
progresses.
In¬
textile mill products
43%
this
mock¬
a
stabilization.
wage
creases
defense
inflationary
improvement'factors
increases
under
the year
risen
of
intense
attending curtailment of civil¬
as
living costs and probably
au'.omobile and related
temporary
continued
_
program...
proposed
exclusion
of
benefits
from
the
10%
sharp
months.
our
the
developments
catch-up formula, make
buying
the
that
If
these
the
ery
some dumping
of inven¬
by business. Nevertheless,
such development would be a
fact
modest scale under the
a
annual
fringe
and
ers
on
and
develop, this
Dr. Backman forecast
25.8
10.3
Line
eight
peace scare
ventories of
12.6
13.6
Coast
a
past
priced items/' There
repetition of this experi¬
a
rises in
curtailment of buying by consum¬
have
19.8
Chicago, Rock Island & Pacific._
Reading
Chicago Great Western-—.
Lehigh Valley ___"
Delaware, Lackawanna & Western
Chicago, Mil., St, Paul & Pacific—
Boston
______
Northern
Southern
-
Members
...
Line
cov¬
SECURITIES
25 Broad Street
__
Missouri Pacific
losses
RAILROAD
j
.___
Gulf, Mobile & Ohio..
Missouri-Kansas-Texas
trans¬
Specialists in
alt
Air
__
Francisco
Pacific
Illinois Central
..
at
Railway
Louis-San
Union
ered by insurance,"
Selected Situations
-
^Pacific
Southern
previously
fully
Pacific
the
disappear¬
low
of
expanded,
for
the
same
result of the
a
situation could create
of
Chicago & St. Louis
Atchison, Topeka & Santa Fe
Chesapeake & Ohio
Texas & Pacific...
|to provide for the continuance of
lithe services of the
company to all
1941
27.3
___
as
of
spree
sures
49.8% "
25.8
Denver & Rio Grande Western.
been made
i?
33.0
City Southern
ventories
period
war
a
wage stabilization policy
not accomplish its professed *
purposes," the speaker warned.
"Wage increases to compensate for
time,
all the evidence points to a
large
increase in consumers' own
in¬
its
eastern
31.5
Maryland—.,
Northern
"Mr, H. H. Ridley severed his
*; connections with Blair, Rollins &
jCo., Inc., as of Feb. 27, 1951.
1949
27.5%
At the
ian supplies and
southern
Western
Louisville & Nashville
{
are
were
■
•
about one-fifth.
*
May,
"Our
Asso¬
Hotel
max-
will
Textile
Statler
*
.
may be expected to be intensified.
in- New York City on- March 20.
"Business inventories increased
by
$10 billion during 1950, a rise of
•
that
covered
were
is
and
told
at
addition, the
quality and
present program.
New
ciation
In
in
ence
Eco¬
^
World
example, after
characterized by a deteriora¬
will be
Univer¬
the
Jules Backman
program
were
St. Louis Southwestern
Western
■
irregularities
Maryland)
1950
Virginian
Michigan
charging Howell H. Ridley with
J irregularities in handling client's
"(accounts, A. E. Kelly, Treasurer
•J of Blair, Rollins & Co. Inc. has
.issued the following statement:-
idue to
roads
k-
Profes¬
of
Finance,
and fuel
•.
Rapids,
actions through Mr. Ridley,
jj "It is believed that any
45
■■•'-T.f-:'■
y
.
In reference to
press dispatches
iout of
Grand
securities
ance
Fabrics
temporary
In this group geographi¬
in the west and the other three
,
N. Y.,
have
Dr.
Accounts
mental
margins last .year than in the prewar year 1941.
particularly that in this respect the eastern
generally speaking, laggard.
Only two of the 14
(Chicago & Eastern Illinois
carriers.
Issues Statement
their
tion
York
any
noted
were,
(
on
ac¬
tories
time, there
same
wages
j Blair, Rollins & Go.
//carried
economic
sity, School
of Commerce,
Should
That is,
railroad
Kansas
^customers who
,
only two roads showed
thing this tabulation conclusively demonstrates.
Norfolk & Western
"Arrangements have
_
sharp
a
City
It
O'Mahoney.
|
was
nomics,
instances year-by-year for the
margins last year than in 1949.
One of these
Southern which was still well up toward the '/
The other was New Orleans, Texas & Mexico.
♦
roads
ment;
and
for
a c
during
for
price increases
place for apparel and other
took
outlook
B
rise
substantial
items.
,man,
most
1942,
the
tivity,"
to
Thus,
the imposition of the
general
imum price regulation
of
short-term
Jules
individual managements have been able to offset the
substantial
there have been
ifuthe postwar era in
rector of Price Stabilization; Ben-
;
the
increases
I jamin
\ dustrialist;
mining
new
Comparison of the individual 1950 profit margins with those
1941 are
interesting as an indication of the extent to which
of
Roy Blough, Council of Economic
Advisers; Michael V. DiSalle, Di-
;•
are
some
five with profit margins of
10%
cal distribution was wide.
;
Others who will
participate are:
,
for
continued
War II.
become the most important single
V
factor deter¬
show
profit
roads
EngJewkes, C. B. E.,
and Roy Forbes
Harrod, both of
Oxford University.
/
we
Kansas
that
economists from the United
King¬
dom have been invited to con-
tribute
outlays
securities can never be bunched
together as one
single investment problem. This is certainly true so
long as profit
margins vary all the way from better than 40% for Virginian
to 6.5% for Central of
Georgia and Chicago & North Western.
It will be noted that five roads last
year had profit margins
above 30%.
This group was comprised of three eastern coal
workable
pact of rearmament on the British
Socialist economy. Two eminent
the
narrower
One
program.
One session will
substantial
last .year- the pre-tax profit
increase from the 11.0% margin of
widest reported since 1944.
In the accompanying
results.
top.
long-term
of the present mobilization and to
seeking agreement
industry
solidated
institutions
free
costs
roads, and in
17.3%,
was
and
was
conference
1
consequences
Treasury
Reserve
of
augmented,
1950, 1949 and 1941 profit margins for 45
individual roads, making up by far the bulk of the
industry in
point of revenues. The roads are listed in descending order
of/
their 1950 profit margins.
Adjustments have been made in those
instances where mergers have been consummated to show
con¬
three
include:
was
'V'.-V''
tabulation
conference
the
at
sessions
additional
transportation
the
margin
the nation's economy for defense."
Issues
year
concerned, b.y the con¬
capital expenditures made
road.
same
clarify the issues of disagreement;
and we might even arrive at a
realistic
from
year
the individual
1
find
last
were
.
forum in which leaders of various
backgrounds
iy logecxier,
volume
results
important expense
problem of the railroads, and quickly reflect the greater efficiency •
stemming from the large capital expenditures, they do not, b,y
themselves, tell the whole story. The overall earnings status of
any railroad is determined by the aggregate of its expenses, and
is measured by the percent of.
gross that can be carried through
to net operating income before Federal income taxes—the
profit *
margin.
Naturally, the profit .margins. vary widely as between
nation," Dean Levi said. "There is
no
single easy answer and we
need more than
traffic
sor
While
,
,
internal problems confronting our
hope
current
of the most important
one
in
railroad operating
the transportation ratio for the
industry as a whole has been cut,
and the ratio itself was the lowest for
any year since the end
of the war.
"Economic mobilization for de¬
fense is
expansion
as
equipment and property betterment, found reflection in a. reduc¬
tion in the transportation ratio last year to 36.9%
compared with.
39.8% in 1949.
This marked the fourth successive year in which
'
-
activity.
"During the next few months,
Ihe large inventories accumulated
by. business and consumers may
benefits derived from large
by the railroads in the period since the end of World-War II.
This increased efficiency, which should
gain further momentum in
23
by
Edward H. Levi, Dean of the Union
far
1950, 1949 and 1941
tinuing
^-Economics of Mobilization," it has
•
may
inventories in textiles.
Profit Margins:
-
CHICAGO — Sixty leaders in
business, labor, economics, law
r
economic
high accumulation of goods by
become deterrninamt of prospec¬
Notes outstripping of sales by
present
consumers
;
.V:l
,
asserts
business and
World authorities meeting at White
•%;,
Thursday, March 29, 1951
.
.
Backman Warns of Inventories
To Be Discussed
-
.
ner
a
University
general
of the firm in 1927 and.
ited partner in 1950.
a
part¬
lim¬
;
»i^>wt^bj5apr^pctt?*^ijfc^rr^fw^j<t<!wbg»kii>et^<n>ibic^^
i
*
Volume 173
r
*#«*«.
mhllwffliflltmm
Number 4998
»y?lfc»jjttfns»f,niujw(«jiwftfif!!a5«'tt£1l1 ttewi rto*ota9w'^csy'>ttr
v<fcd
.
.
*m? jnhtar^^.>^mrriqwtkm?uycvw^«w,»ihmiu«
The Commercial and Financial Chronicle
,
•
Will Our Food
Supplies Be
(1343)
£®ctg>g
Expansion
T
,
I
By HERRELL DeGRAFF*
^Gr
thls
a#
v
.
DeGraff, in depicting food situation in this country
full
„1SWIc
scale
or
'/
and .applies, denies U. S. has or will have surplus food, and;:'
holds it will be difficult and improbable that demands created
by all-out military needs
we
were
problems
on a
our
and
weather
I
cumstances may again be repeated
discussing food
requirements
is
world-wide basis. In response
to
mobilization
late 1930's
had
ex-
doubt that
ous
nation
theUnited
States could
upon
i
did
an
as
great
so
fact
the
experience this
an
in
output
But
in-
such
her face and
a
her voice, one
variations of that
was
but when at the'
reasons
prosecuted
was
so
our
we
able
were
to
military forces bet¬
own
of the rest
of the
inexhaustible
here
world
and
many' of
labor
under
as
most
truth in such
Too
idea.
an
80's when
of
exporter
combined
the
and
we
were
the
foodstuffs.
effect
of
natural
built
40's
Creates
War
our
can-
tion
of
domestic
gradually
as
food
propor¬
a
Food
production
with
diminished
no
as
great
Pressure
exports. Under the
war
of
pressure
and the needs of
a
40's.
we expanded
y
exports
y
during the first World War—but
'
and
for
what
food
we
have
so
surpluses.
matter
is
that
readily
The
for
truth
some
ten
result
be again except
called
of
the
again
but
the
becomes
:
ago.
on
a
mous
II,
If weather
food
some
is
It
true
vide
we
that
again
during
were
fluence has to
and
relief
later
feeding,
of
vital
*
at
to
our
vary
,
other.
foods
cumstances.
An -address
Farm
^
New
Whether
those
in
output
a
country
fact
In
one
for
year
the
fact that farming is a
for
business,
and
'cif•;
.
by Pr®f. DeGraff
af
„
,
depending
the?
basis accounts
Stability Of
^and
Home Week Program of the expansion
York
22,
i95i.
-
was
the
use
in
our
became
an
agrieul-
impor-
rapidly off the shelves
put to
of
For example,
hybrid seed com and
use.
.
Pared to prewar. New insecticides machines to use with those tracand fungicides were more widely tors had reached a point where ..it
~" 1 "
J
,~~J
U~J
used.
Improved livestock feeding permitted crop planting and crop
breeding practices were ex- harvesting so much more timely
panded.
Probably never before that it seems almost certain that
in history had such rapid changes yields were increased,
War
been made in the production tech-
niques used
large part
a
seems
on our
clear
to
farms.
me
For
example,
we
had
several
And it
wet springs in the Corn Belt dur-
these
ing the 1940's. With the old horse
that
roofing and siding materials. Through the Glasfloss Division, the
Sales in 1950
to
were
were
$615,086,
a
$10,180,178—the second highest in the Company's history.
an
increase of $202,863 over 1949. The 1950 earnings amounted
$1.33 per share on the 462,126
share in 1949.
OUr
of
Company
variety of glass fibre products.
shares outstanding compared with 89 cents per
>> -"
.
/ '
'.
" A
share totaling $231,063 were paid to stockholders.
;
assets to liabilities on December 31, 1950. was 4.38 to 1,
Dividends of 50 cents per
The ratio of current
based
on
current assets of
$7,256,977 and current liabilities of $1,658,119.
,
Comparative Consolidated Statement of Earnings
1949
1950
Net sales and gross
Cost of
on
accounts in¬
5,484,176
4,684,968
$ 4,696,002
$3,699,114
$ 1,212,009
$
sured and allowance for credit losses.
Branch office,
$8,384,082
income from finance fees..$10,180,178
products sold, including charges
selling and general
2,964,343
expenses
%
734,771
,
s
!)
only)
Federal normal tax and surtax-
as
vision
-no excess
profits tax
337,548
126,923
.
.....
$-1,085,086
$
397,223
i-
pro-
15,000*
required.
■.%
to.an40
615.086
$
412,223
past
upon
figure.
of the
Annual
Report, which includes the financial statements of the
may he obtained upon request.
Company,
plants
Tilo Roofing Company, Inc.
for. the traditional
farm Output.
production
*Red
A copy
biological
HI
The
the
State-College of ^Agriculture,
.
;c
illijctrati vp nf ivhat
University, Ithaca, N. Yv March eaily
s 1S UlUStrailVe-01 AVnau
^
\
';• >../.canhappen .when- .all.~f actors
.
Cornell
history,
tant contributor to increased crop
yields during World War II. For
under
increased
chines and factories, and the further fact that most of our agriculture is organized on a family farm
______
explain
Profits
years
these
;
came
and
positive in¬
manufactures and sells
there has been an average
annual variation in food output
in the country of only 3%. The
World
allies
first time
the
ufacture
andcompany,
Tilo
roofing
inc.,primarily
is one of the
larger companies
engaged
in the man¬
application,
to existing
structures,
of asphaltic
and
of 1935-39 to
I shipments
were
possible
only because of very unusual cir-
our one
for
tural
:
and animals rather than upon ma-
to
more
asbestos
political
"time enemies. But
even
all.
Summary of Annual Report
this point to explain
much from
„
able to pro-
foodstuffs
farmers
at
much of this scientific develop- the most part, farm machinery has
ment
was
Food
large and diversified as the
United States does not ordinarily
large amounts of lend-lease
food,
not
the improved
price prospects of the early 40's,
imporof the
output of World
other
'
War II
of feed available to live-
sources
and
pressures
a
? l.}\
.
product
Farm
citizens.
World War II Situation
other
or
this almost unheard of increase.
of
our own
of
little
However,
wea-
principally
permissive factor in the enor¬
(2)
inevitably
years
animal
not
as
numbers
them
used
inclined to believe
am
44%- ** seems n.ot on?y worthwhile
source
is
large
is
and carry them out, not vetoed by
the weather man.
preparation
war
From the average
pronounced changes in
the character of the diet consumed
by
But I
1944, food crop production in the
United States expanded 29%. In
this same
period the output of
decades
this country has not been a
of food for the world and
likely to
very
output
Beginning
facts are not widely real¬
They tend to become lost in
widespread
confusion
over
ized.
food
the
Those
the
mind that
my
contribute
the
There
farmer to lay his production plans
certainly face this type of inin
creasing food demand in the pres¬
following 20
ent year and the years immedi¬
years of the inter-war period, our
ately ahead of us, the question is
food
imports were greater than
vitally
important - whether
our
our
food
exports,
so
that
the
farms can meet this challenge and
United States was on a net import
as
abundantly in this
basis amounting to from 2 to 3% produce
national emergency as they did
of the food supply of the country.
temporarily.
.
1922
^
F
that weather should be thought of
tritious
and morale-building
types
of
foodstuffs.
Since
we
almost
foodstuffs,
only
did
in further de¬
mands from the civilian popula¬
tion for high quality, highly nu-
allies for
our
barley^ Ifrom. Capada were* fed out
1941', >42,. arid '43. Compared
in
Supply
even
or
results
the food
as
imports
atil?g \mder low price conditions expansion in livestock production
-particularly hogs and poultry.
an5* who could hot see a dollar
-no
the
time it has
same
unfavorable.
question in
tantly to
And the expansion of
business activity and of payrolls
and consumer .purchasing power
coming of World War I, the
food imports of the United States
almost
so
been
ther
weapon.
until
the
were
not
not
upon our food supply. An expand¬
population of the country more
ing military force again needs
rapidly than our agriculture could
food in increased quantity over
expand during the latter part of
the
requirements of, the
same
the last century and the early part
number of persons in civilian life.
of this one.
Exports
:•
to
serve
invariably increases the
the
up
the
\
immigration
of
had
since
presesnt time.
War
the
But
increase
population
own
big net
a
a
in
ences
this country as it was in the 1870's
and
large
.
Point UP the Problems we face at
people still think ot
many
with
important to the present situation
except as a review of our experi-
Unfortunately, there is al-
no
feedstuffs together
of- oats and
These
ary.
II food experience is an enormously interesting story in itself,
though it may not be particularly
own
delusion
that this country could at will assume
the burden of feeding the
world.
in the Ever Normal Gran-
away
con-
niorate factor of 0f the production increase. I think
in production methods farming methods of preparing the
that factor may well have been a changes
extreme importance at home,
Continued on page 32
The history of our World War greatly increased application of were an extremely important fac¬
an
even
our
the
was
tinuing in the laboratories and at
**oosj aod was
to
seems
military and a political
in our international rela-
was
weapon
idea. Much
larder,
home
at
citizens
food
heard
look upon the United States
ades, experimental work
rea-•
_
fort. The extra food and the better
might need
same
the
stock producers added to the food
w.ere using the improved tech- supplies of the country from 1941
ni9ues> bu* few farmers could be through 1948.
distinctly favorable, ?aid *° hav,e used them fully, and
(4) Farm machinery, probably
in-
a
have
we
to
seems
.
xsv-x
often
de- -wheat *of>
have been other years during the
last fourteen when the weather
enormous
girl fighting, and, perhaps of equal imfrom one of the S. E. Asia coun¬ portance, we were able to upgrade
the diet of the civilian population
tries, said, "But surely the United
home
even
while
we
were
States could produce and ship al¬ at
most unlimited quantities of food carrying on the intense war ef¬
How
accumulation of feed grains and
feedi quality
stashed
some
.of. agricultural
always
been
looked
upon
as
mainly a contributor to increased
ter than armies ever before have as
productivity of labor, but not esbeing favorable since 1937 in
been fed, we were able to send the the sense that it was not unfavor¬ improved types of wheat and oats pecially a
contributor to yields
and
other
lend
lease
foods
to
our
crops rapidly expanded,
per acre.
Yet, during the early
allies, able. Weather then was a permiswhich kept them producing and sive factor which permitted the Fertilizer usage was doubled com1940's, the number of tractors and
feed
disbelief
it."
it
are
country;. has
catastrophe
we
of the
one
production
in
showing in
to other nations which
but
following
that
successfully. Out of the increase
world
student,
years
urneo for a dobar invested in By the end of 1944 we had built
been some years between 1937 and imProved production techniques, up on farms a number of live1950 when growing season wea- were no* putting this science fully stock which could not be mainther has been exceptionally fa-'*0 use as raPidly as it was being tained from current feed producvorable—when the rains came at developed.
One way to state the tion alone, with the result that
precisely the right time, when the resu**s would be to say that there from 1945 through 1948, we exprogression
of
temperatures
as was accumulating in inventory a
perienced a liquidation of some
well as moisture over practically 2rea* deal of not fully exploited livestock.
Thus, the windfall
in food production was, to
my
With much
Herrell DeGraff
food
thinking,
why the war
of food
supplies for
other parts of
the
in
time.
crease
mportant
source
the
up
achieved
crease
short
looked
be
From
war.
twenty
try increased 40%. Probably never all of the country was unusually imProvements in agricultural scibefore in history has a developed favorable.
Equally certain there enceMany, farmers, of course,
seri-
pressed
for
to 1944 the food output from the farms of this coun-
question,
a
I
matter of vital importance
that this nation again faces
a
now
dogmatic
I great drought of 1936. There have
Food Economics
food
into World War II out of
Jt
,
be
ProdUct.on.rn the ^"^^erngprov^
v
Recently in
class
i
-
,
Ye-^kout any part pression. During, these two dec-
Of
(l)~This
and other factors work in favor of abundant yields.
/.
y
,
analysis,
that the
*
be met unless weather, technique
can
me
,
.
wish (to
proved production methods. Per- food production: — '
haps I can express nyself this
(3) When we went into the war,
American agriculture vwent; the country had a considerable
way:
'2S*2oro J.'*niSorSnt«r;^aT'
experiment, stations/ .-and im-'
ln^ork*-?Y.ar- Bex^portaht' improvements : In farm
'•*
iuuu uuu.au
food
demand
war
«...
uu
on
,
do' not
Professor of Food Economics, Cornell University
and the effect of mobilization
time,
one
Factors in Farm Production
or
19
our food supply] become^ improved farming science and im- tor in World War"II" increases in
Highly favorable all at
for Another
Professor
twa^rtmsamHVtiwmim*
w9wvmtmtm<a'jw*ul»!
wwm<j^ttwnw«t^wtfv»»i*«afsi^
**•>
STRATFORD,
-
CONNECTICUT
,
20
(1344)
The Commercial and Financial Chronicle
Continued from first page
.
Thursday, March 29, 1951
.
.
picture
"unscrambled" by
means
of
Securities Salesman's Corner
a
"key" sent to their special
home television receivers via
tele?
Television's Potentialities,
phone.
The
other
manager from
of
ness
day I
one
saw
of his
letter
a
that
was
written
to
sales
a
;
The salesman had been in the busi¬
men.
from
the
north
—
took
up
studying securities, and went
residence—
a
out in
a
new
spent
witching
.
.But
..
ting
its
in
-
t
how
to
on
qualify
the
a
prospect.
Was he
people?
Was he
wrong
curiosity seekers
prospects for
—
one
know it alls
or
reason
or
—
rived
call
when
on
you
OKLAHOMA
L.
O'Dea
CITY,
Marlow
have
Ok la.—
and
James
become
Goldschmidt,
associated
member
Exchange,
Maples & Gold¬
Reed, Inc., at its schmidt of South
Norwalk, Conn.,
Oklahoma City office, in the Coldied at his winter home in
Holly¬
cord Building.
wood, Florida, at the age of 59.
with Waddell &
Staff
to
POTTSVILLE, Pa.—Reynolds
Co.,
members of
Stock
Exchange,
the
New
&
York
Cohu &
Co., 1 Wall Street, New
York City, members of the New
regis¬
tered
representative
in
its
York
Potts -
that
ville, Pa., office, Schuylkill Trust
Building.
come
Stock
Exchange,
announce
Lloyd A. McDowell has be¬
associated with the firm
special representative.
.
default.
In
to
Prompt Wire Service
of
More
people
need
about
more
To
LOS ANGELES
•
Western
SPOKANE,1
•
Markets
in
DENVER
•
saying, I have
so
rather
The
for
LAKE
miracle carries with it
scares
theatres,
schools,
hell
*'
out
of
me.
product
design,
marketing techniques,
both
time
and
including
capacities
to
_
them
Is-to
Do
For
.
make of TV's potentials will
strengthen or weaken our dem-
of
ocratic processes, all of which rest
added
Us?
0ld
•
are
going
has
to
question of what we
to do with television
date
been
far
more
And
0f these
some
if
vanc6
The basic
it.
to
operative
think
to
it
is
going, to
do
for us than .to us. I ' "
date, the heralds of TV have
more
To
by comparison,
belabored many adjectives to describe
the
they
impact of television—
are
right.
so
The
to what TV is
as
loud
doing to
eat, dress,
play and talk; what TV is doing
to
movie-going, book - reading,
beer-drinking; what TV is doing
to the arts of conversation, ;courtship and interior decorating—all
bespeak the impact of television.
At
this
stage
for
I,
don't
one,
know what this all proves,
except
perhaps that
nothin'
ain't
we
seen
view
at
the
least
to
suggests
thing
one
do
we
about
to
me
least
can
television
is
somehow
fit
itself
ready
muddled
nomic
patterns.
into
social
al-
our
and
eco-
):
Shortly, we are apparently going to be treated to a Chautauqua
on
standards of ethics and moral-
ity
for
'
In
spite 0f
tern
that
has
been
frozen
since
several
cities> the homes are al¬
than 50% "saturated"
sets.
What happens to this
larger
ready
and
the
tolerable
ratio
by
biiiion-odd
soieted
dollars
worth
equipment
when
national
devoted
to
talent
public
we
priately
ESTABLISHED
Members
and
SO
New
other
York
BROADWAY
NEW YORK
,
.
kind to suggest what we
can
do with the
.
a
use
change)
vision.
5, N. Y.
Teletype NY
To
1-1856
never
-M
tried
topof
(and I
~
appro-
full-dress
a
Commission
1915
Stock Exchange
Principal Exchanges
Tel.: WHitehall 3-6700
some
afford
National
more
unbelievably fantastic
-
-
guide
the
television?
-
These
only
problems
are
technical
TV.
nascent
It
socio-economic
0f
some
these
that
has
the
confront
still
more
problems, and
may
thfi toughest of all.
Solomon would
gear
of
some
prove
to
of
remove
his head-
and his sandals in awe, were
he to enter
an FCC hearing where
television's-problems are being
decided,
be
mission.
As
some
of
you
may
cross-section of 300 Chi-
a
families have their homes
equipped with special television
Cago
receivers,
feature
upon
on which they
motion
pictures
payment of
a
can
see
nightly
family admis-
the
I
in
these
advertising
things
places
the
as
theatre,
tuition.
pay
the
buy a
via
it
now
The
same
entertainment
or
we
where
the school—we
or
or
via
Do
television.
could
be
can
Fi¬
collected
Phonevision.
wonder, therefore, why
intrigued by Phonevision as
you
am
system of box office television?
of
the
converts
television
miracle
communication ; into
totally different miracle of dis¬
tribution.
As such, it is a brand
phenomenon in the field of
marketing. It takes a bit of men¬
tal shifting of gears
away from
scores
of preconceptions even to
think
about
vision
I
Phonevision
submit,
X,
tele¬
or
programs-for-a-fee.
however, that
potentialities
then
of
the
Phonevision
I
The
300
Chicago
X2.
as
as
•
been
tan¬
one
j
<
«
families
test
of
On-this
offer
can
have
are
potentialities
are
proposition
if the
television
gible exhibit.
here
offered
in
* one
kind of product on Phonevision—
variety of feature motion pic¬
tures, most of which are pre-1948
vintage, and therefore have had
a
their
first
theatre
double
of
run
gambit.
features
the
regular
There
are
extra
or
no
added
attractions, no free dishes and no
bingo on the Phonevision 'test
programs.
Yet the sample popu¬
lation
of
300
families
"consuming"
more
motion
from
customed
movie
If
to
been
700%
to
they
consume
theatre
one
the
to
have
300
pictures at home
Phonevision- than
test
families, upon re¬
of quest to the station, can have the
of
would pay for?
these
delivered
for
Qn top of all
this, the Commission is shortly going to be asked
all
sold—the
are
ticket
that
can or
enjoy
stadium
be
I suspect that
television station, but "scrambled"
as to sight and sound. How-
potentials
such
now
new
knowledge
we
have both
before, as public policy, ever,
to
For
Phonevision
the Words literally for sion
charge of $1 per picture. The
potentialities of; tele- films are telecast from a
regular
m,y
sponsorship
ex-
of
have
potentialities
TV
color
do
can
things, but how to pay for them—•
beyond those fragments of these
engineers
investigations know,
these days, we could
level
now
Sponsorship
Television
a
about
of bore¬
Question of Advertising
a
do
minds of
full
too
are
Pentagon—?
and
questions, and the fear
ignorance that go with them.
ob-
vision, which the Zenith Radio
manslaughter in juve- Corporation is
currently testing
programming:
Considering here in Chicago, with FCC per-
nile
and
pands into the UHF area of the
spectrum?
What happens when
the jurists finally decide what the
should
or
and
of
murder to
the
dom
more
television, including the to decide whether it will authorconfiguration of televizable neck- ize a
system of "box office" telelines
people who
nally,
In
knowl?
the
able
stations.
television
see
stored
and into the homes
information
i07
can
vast
Senate
September 1948, we already have
some
11,000,000 sets in use, tunto
I
the floor of the
S.
they
transmitting pat-
a
na?
or
rent events from
.
of its current progress and problems.
They are minuscule only
of
20,000,000
too in-2
some
too old
are
all,
-
-j-
of
the
U.
co-
sively dealt with than has the dyNow from the magnificence of
namic question of- what is tele- television's
potentialities, let's devision going to do to us. I would scend to the minuscule of some
like
of
concert,
Current Progress and Problems
pas-
in
Planetarium, out of 500
universities—not to mention
cur?
find
in'
houses
the Adler
in ad-
answers
really tried
we
audience
seating capacity
including;
—
Hollywood's
a liv4
hits to
edge out of hiding in the Library
of Congress, the Field
Museum*
ciphers
could
we
the
movie
bringing the
knowledge of such things
among
television's potentialities
more
the
most
Per chance the price tag on ad-
50
times
coast;
smash
armchair
firm to go out to any sort of
pub?
place of entertainments But
vance
.
which
lie
uses
or
10
all
tion
to
people who
der»f fom, education,
Finally, whether the
should have 40
x
vehicle
see
crippled kids in homes
colossal
ing-room
funda-
use
to
coast
best
we
'
Basic Question:—What Television
.
in-,
an
can
theatre-party in Atlanta;
Kentucky Derby to cowboys
bunkhouse in Montana; the
circus
commu.
the
a
from
money,
sit-
simply to let it take its course by
chance, on the hope that it will
J. A. HOGLE & CO.
the
in
of
which
.
I
home
a
stadia,
Family habits, mores, attitudes> and expenditure — prefer-
the
un¬
bring the Metropolitan Opera
a
snowbound living room in
South Dakota; "South Pacific" to
Current
ences
also
am
the
as
long
television, the
televisionary.
television
tele-
(4)
,
challenge of television, the sheer
responsibility
which
this
new
that
CITY
degrees by
of
because I
so
curable
has
observing the
to
and
(6)
note
a
Scotsmen
can
(3)
sales
desire
no
melodramatic^
more
'
stores,
e^c-
:
:■
'
sound
afford
SALT
various
.
in
me
folding portents
•
.
(2) Real estate values and future location and design of nomes,
by
how to pay
me
characteristic
troubled
what television is go-
humility, for when I get through *n one way or another on access
pondering what little I can think to knowledge as opposed to exthrough about the meaning and' posure to controlled propaganda,
a
FOR BROKERS AND
DEALERS
d
t
mental
or
I'm also
of them.
one
This
vision
*
+KA;
engineer.
something for nothing,: and I
am
(1) Capital nQW invested irt en_
terprises which will be depreci-
current
positively
get
dollars to know
jng to do to*
better—in-
I doubt ifrerny more than 5%
of television's full potential impact on us is yet apparent/ Such
*
a
jn advance
desperate
yet.
'
on
ar-
exchange
an
if you can also tell
example that,
national scale, it would be
worth ten billion
better—communica-
uatiom calls
as a
•
^
most
for
pre-
now
when and how children
Staff of Cohu & Co.
announce-that
Robert Morris Snyder is now asso¬
ciated with the firm as a
its
time
rtintf
outcries
Lloyd McDowell Joins
amidst
that you can
prior
should have
the world—either
and
Reynolds Adds
in
some
(5) An other media of
case,
of the New York Stock
and partner in
is
all
television
accord
nn^nn^pnrU^pri % ThfnrrWccj- nication,
a
Charles
J.
the
things today than at any time in
history.
And
nowhere
is
that
more
urgently true than in this
have to create a desire and
expose a need. You have to be able to
uncover your prospects
by
constant and intelligent work.
All your advertising can do is
give
you a hint as to who might be
interested. The salesman must do
the rest. This seems to be the
answer
Alva
all
information
.
Charles Goldschmidt
anything
place
the dynamic
progress of
j would think for
point in history when
a
and
more
you
Join Waddell & Reed, Inc.
miracle
knowledge.
Was he attempting to sell a
out his prospect's needs and-
in this
of
communication
much
tion
another?
selling securities
are
of
of
deed
go out
need for your goods. If
of them you are sure to do some
business. But
enough
view
at
need
selling merchandise to stores, whether it is
heating
plants for homes and factories, bug killers for
farmers, or almost
any other commodity listed as a
tangible, you can almost
you
in
mankind
spending time working too
trying to do business with
or people who were not
good
people who have
taking
thought commensurate for the miracle. Some
with its potentialities.
still refuse to believe
history—a mighty state-
versatile
If you are
the street and find
than
more
is
scient
on
.
security instead of trying to find
objectives? Was he actually working hard
enough? If so, was he
whipped before he started? Any one of these factors could be the
difference between success, and failure
for a new man starting out
as he did.
■.V-.'C-'-.'.1
?,;•/
on
date
commonplace.
.■
But what gives me pause is.the
cosmic coincidence that this most
My suggestion to the sales manager was to call in this sales¬
man and spend some time
with him.' Find out how he went about
making his telephone calls. What did he say? Find out if he knew
hard
to
instrument of communi-
miracles
a week is far too
little work for anyone to do.
should have at least 25 solid
interviews in a week when
getting started in this business.
'
,
and
announcements
flowered
declared, somewhat
that television
is
the
awe,
merit
man
,
me
that
Maybe, therefore, we ought at a
Scotsman, so I will listen more
least to get our minds together
intently to how to make a miracle
have
cation in
six interviews in
,
else
besetting television
screen.
greatest
study of this salesman, his methods, and his
The evidence was
only clear on one
point — this man was discouraged. It was not
only because he
made 30 calls on the
telephone, and six interviews turned into no
sales, but that was the way it had been going for several months.
After all, 30 telephone calls is not
enough of a trial, and certainly
he is
intrigues
»
than
have
We
attitude toward the business.
A
■'
more
films, * resuscitated
already regurgita-
commercial
which
When this sales
manager asked me what I thought about it I
only sure of one thing — the rest would have to come out
result of more
a
*'
televisori,
technological development
principally because it seems to
until" atomic fission came .along. hold a
key to some of the
probf
I want no part of a secret Gov- lems
that are
vaudeville and
telephone and made but six appointments.
Out of the six he called on he
sold exactly none. It was his second
in the business and he was
beginning to get discouraged.
He said some of the
people he tried to find in the phone book, and
when he couldn't he wrote
them, but most of them did not answer.
Those that did would not
give him an interview. He said, "In the
sale of tangibles I used to
make eight calls and I knew I would
make a sale, but in this business
it doesn't look like the law of
averages works."
as
•
new
a
■v>r
is
'
"V'■
+
process.
television
incarnated
— inquiries
that the firm had
He went on to tell how he had
month
was
>
than eminent
Commission
dictating as a whole.
Perhaps in this inter¬
witchery, * and its full the use of television. Yet TV has est I am
prejudiced by reason of
significance must lie somewhere already influenced our daily lives
being an economist and sociologist
beyond the amiable puppets, re- more than has the sundered atom, rather
He had been
working on leads
received from their
advertising.
called 30 people on the
''#
enough,
electronic
time
some
territory to sell.
Progress and Problems
.v*"1 y"*,
\
electronic impulses across the face
of a cathode ray tube. It is a be-
selling tangibles for
many years and had been quite suc¬
cessful.
In fact he made so much
money he was able to save
enough to build quite an investment account of his own. Then he
became interested in
selling securities. He moved into the south¬
land
;'v-y*;
Appropriately
system is called Phonevision.
This
Phonevision
experiment
By JOHN BUTTON
'
?
this
as
patrons.
on
are » ac¬
regular
■
■.
.;
extrapolates these results
nation
as*
a
whole,
and
Volume 173
takes
Number 4998
into
account
families who
sets and
.
.
only
those
have television
now
telephones, the resulting
figures of potential new business
to
Hollywood and to television
off the
run
I
disinclined
am
own
edge of the
personal
paper.
interpretations
deficits
and
stored
of
sons.
First, the test is still in
progress; but more importantly,
it
is
being
made
zation from the
cific
for
different
a
potentials
of
home
;
ciding
providing
Commission's
family-seat
a
-as
added
-
service
doubt
if
would
the
from
FCC
to
care
interpreted to
get it.
the
test
death, before
I
heady stuff for
Potentials
;
of
Easter
fit
of
for
that
this
office
lieve
first
not denying
am
acid
television
I went
ago,
year
what
I
office
limb
thought
tentials
of
box
out
way
a
the po¬
home box
could
be.
My
my
"absurd"
television
predictions
costs
;
been
understatements, I am -enjoying
the discovery of more and more
thoughtful people perched on the
limb
with
As
me.
of
matter
a
fact, the Phonevision limb is get¬
ting a little crowded, what with
people of as diverse interests as
Adolphe Menjou, Eddie Dowling,
Tug Wilson, William Morris—to¬
gether with a growing list of ed¬
There
sort
has
of
been
the
suggested
;
eventuate:
Millions
(1)
people would be given
to
sons
•
of
stadia
them
with
synthetic
widening eco¬
theatres
"theatre television." By
as
premium type
would be shown in
programs
behind
theatres,
office.
buy and use television
And
thus—with "two
V
;
This
,
proposition
I
education.
the'
logic of it,
a
nothing
free-
new
of
selling
mounting
government
usual
and
in- hundreds
built
of
towns
and
that
a
the
time
same
it
was
even
enhance
so
the
films
and
give surviving
better product to
far
a
capacity
more
to
as
prefer
out to the movies." Beauty
parlors have survived home per-
to "go
numer¬
In the first place, the
neighborhood theatre is
now an obsolescent marketing de¬
vice.
Some 1,500 ceased to exist
in
opinion that if
sell to those customers who
understand
after
"
budgets for making
theatres
embarrasses
cannot
manents, and there
average
far
are
more
cogent reasons, I submit, to ex¬
pect that if Phonevision succeeds
in
the
past year. Urban conges¬
concentric suburbanization,
the- ascendancy of preference for
home
recreation, intensified by
television—plus perhaps 50 other
factors, are responsible.
doubling
number
tion,
quadrupling the
patrons in the
or
movie
of
nation, both theatres and popcorn
still have
A
lot
also
tions
considerable future.
a
kindred
of
already
are
to
is
often
emphasize
elucidate
have
and
observation
important
more
the
obvious
obscure."
the
done
you
May I subside
Holmes'
Justice
"It
that
but
abused
me,
much
a
patient audience.
with
prognostica¬
to
occur
of
more
than the latter.
;
than
I
hope I
the
former
.
BRASS
BRIDGEPORT
increased
an
bewailing of the pressures arising
from scarcity of stations (29 net¬
work TV markets have only one
Financial
cities which will never support
businessmen,
bankers,
"a television station (or stations) station, 9 network markets have
women's group heads, editors .and
but'.two, and 16 markets have to
others
becoming vocally inter¬ Jon advertising alone.
;be served by kinescope); scarcity
ested in Phonevision's possibili¬
Moreover, advertisers and
of network' availability; scarcity
broadcasters should recognize that
ties. ;!
: ' ;
of. prime
evening time; and. a
;.Such tangible as well as moral the average family budget would
mounting scarcity of talent and
support makes me
inclined to allow for the consumption of only ideas in the limited areas of im¬
venture
still further out among about as much entertainment, ed¬
agination where TV has thus far
the twigs of potentialities for box ucation,
etc. on box office TV
searched. There seems also to be
office TV, If it bears fruit, I will as they now pay for elsewhere—
ucators,
as
Scarcity of Stations
vision circles of -late
of revenue, and more au¬
dience, TV-PV stations would be
How¬
me
via
at
will
it
box
tries.
ous
-(4) There has appeared in tele¬
sources
bring
whole
of "national preparedness."
.name
(2)
sets;
to
occur
also of the
am
better
because
does
the
•
me
method
or
TV
sports spectac¬
provide
I
this means, certain
wealth of real honest-
from the twin horns of dwindling
more
more rea¬
office
methodology of
television, could
subscription programs
to
relay
of
toupee
cover
does
distribution
stalemates.-;
about
have
to
it
Phonevision,
rupt colleges and universities. The .replaced by a new kind of farm.
(2) In making all of these types
We already have some new kinds
of premium programs economic¬ incipient draft of 18-year-olds will
and
we
will have
.administer. the economic coup de of theatres
ally possible and thus infinitely
grace
to-more than one shaky more.
The
theatre
will
surely
expanding the "reasons for tele-"
-college and decimate the facul¬ never die. But I cannot see the
vision," it is my contention that
ties of most for lack of payroll—
two
things of direct benefit -to
process being
expedited by the
a fine thing to have happen in the
commercial
television
would
most of
proved
than
the -charity
•
along
knowledge for what it is obvi¬
ously worth and thus removes
higher education in this country
make
all
Yet
"a
Television"
'
something of
seller,
simply
because
there were so many people who
wanted to disagree with me. Now
have
advertisers
for something that box
can
more
easily
to his home, and let the
family enjoy for one fee.
Maxwell
cus¬
out
special place to
a
television
ticket-buying American subsidy, then I'm for Phonevision
public sits by, willing to pay if come hell and high water—be¬
This obsolescence is no reflec¬
somebody will figure how to col¬ cause these two figurative ana¬
tion on theatres. The old-fashioned
lect it.
Phonevision could cancel themas are already lapping at the
farm is also obsolete and is being
out all of these
portals of hundreds of near-bank¬
became
events
the
difference.
I
submit
that
bring the, very
If. Phonevision
board the promoters
enterprise
can
cur¬
good
or
wfiile the
best
that
a
town
the
theatre
will
and
in
more
up
good
contrast,
to-Soerates
their,
(5.)
as
go
pay
ever,
fibfes to
a
to
Phonevision opens up a vast new
home market for motion pictures,
of spectator
tearing
of his home to
forever!
"Theatre
continue
of
known
best
are
bringing
programming
that he
especially
of it,
nature
asks
vision receivers.
ulars and
colleges,
is
best of all the theatrical arts into
sports, from the bigprofessionals to the fresh¬
tomer
television
vision's rubbing against the chasis
of the film world, a methodology
is
TV
By
..
last
Benny's
theatre
—
very
private opinion how much of
the
paid?
can't
Jack
theatres
when, by the
programming may well
shudder at the thought of such
competition — but everybody in
advertising and in television be¬
lieves. in competition. It never
hurt society yet, that I know of.
liv¬
(period).
fight, but only 14,802
Suppose that only 10% of
marginal
com¬
mercial
Besides,
of adding costly
process
theatre TV machinery to already
current
delivering them to home Phone¬
Robinson
had
the
'
that 30,the LaMotta-
audience
of
TV
quality"
paid.
home
be
to
expensive
♦
revenue.
of
nomic bald spots created by tele¬
rent
says
saw
force
new
The. creators
This is true only to
Phonevision
Magazine
the
supported, "for free" out
vast
21
into the home, and I leave to your
home;
—nor
of
a
bene¬
hair about television because they
can't collect from willing viewers
predicting
some
to television
on
Cross?
the
more,
course,
out
that
extent
"theatre
.
water
be¬
More than
in
adding
predictions
of
test
affords—and
I needed it.
me,
theoretical
a
for
and
the
"back home" trend.
theatre
a
ing room."
the
super
Red
Television
„
Nevertheless, I
"made
Ring-
A
in¬
be
of the
saying that television has
are
the
the
myself the great aid and comfort
a
the
service
Across the
j
to this
community
000,000 people
Office
Box
An
.■'Life"
are
ionary.
/
Garden?'
show
only.)
raw
televis-
a
Wind?
the
churches?
A
Lincoln
Day
Political
Dinner?
(This
question
for Republicans
they
figures from the test to date
pretty
benefit
data
Besides, just the
Square
son
Commissioners
have
With
in
times
more
is,
of
strongest
added
We
Race? The
premiere of
The
live
we
Television
and
ling Brothers Circus ;from Madi¬
and
television.
"Gone
a
de¬
new
a
Series?
World
becomes,
also
had to live
ever
frightening
latest
Kentucky
the
at
"natural
psychologically desirable
place to be.
approach to
subscription
Indianapolis
Derby?
whether ..Phonevision
should be authorized
even
data
in
use
aesthetic
the most
TV, let me ask ,you—how many
people would pay $1 -for a home
FCC for the spe¬
of
purpose
the
authori¬
under
and
creasingly
gets
scenery
sidewalk.
the
on
To take
the
the
-
rea¬
comfortable, healthful, con¬
venient
into the moldering old Met, where -habitat" that man
the great artists sing amidst the in.
Moreover, as
my
the Phonevision test for two
(1345)
most
fore available only to those of its
millions of friends who can crowd
.
offer
to
Chrohicli
The Commercial and Financial
.
(FROM
Highligh
REPORT)
ANNUAL
1950
—
1948
1949
1950
.
.
.
perhaps five hours
where the fruit grows.
ing the balance of the time, this
audience
.extra
Phonevision
vs.
Commercial
able
Television
this time I have learned
to anticipate
some
of the most
quick-flowering questions about
business.
whole
of
One
the
germinate is: "What will
Phonevision do to regular com¬
surest to
mercial television—is it
I think that
workable
threat?"
a
Phonevision,
or any
office
telecasting, would be the best
single thing that could happen to
TV.
In the
interest of brevity,
let
of
system
box
telescope my reasons:
me
Phonevision
would
give
a huge second source of
(1)
television
and thus break down the
revenue
barriers that now
economic
tain
television,
in
only
not
con¬
its
in its pro¬
gramming or cultural potential¬
ities. TV can now do or offer only
what advertisers can or will pay
business
growth- but
for. With
Phonevision, it could also
public, with
do and offer what the
all
its
.
series
do
cialized
dermy.
subject
a
on
.as.
I
of
bit
a
the
even
hobby
believe
of
the
spe¬
as
taxi-
York could be rebuilt
work
presentations
from
from
revenue
just
on
the
Now.
not
on
one
the net¬
week's
Phonevision
receivers
now
in
do
adver¬
there
is
finally
all
for
thorns
The
will
parties
of
public
you
they
as
are
accountable
hoarding
talent,
costs recklessly to
up
out the smaller
freeze
same
held increas¬
-Over
f
for
and
above
the
the
that
do, but won't, if added economic
quenchless
wherewithal is not forthcoming.
program
thirst for talent and
New York's sta¬
inevitable
as
telephone
it
once
I would like to
sible
results
was
as
was
such
of
For
't
one
thing, I believe the
the
already
an
surgence
of
greatly
apparent
*
*
use
ac¬
re¬
of the
center
It is now
will
.✓
a
American home
of family gravity.
platitude how the wide
automobile
the
acted
to
home.
But less attention has been
paid
to
now,
thousands of ingenious
the
fact
that
for
years
produces hours of films in
But Hollywood can't af¬
priceless storehouses of
except
very marginal stuff.
Indeed,
Hollywood takes a dim view of
TV use of her stars, and so do
service;
some
*
all
film,
of the stars themselves. And
this
at
at
$1
when
time
Para¬
a
calculates
executive
mount
some
a
of their old films
now
As
things
now
stand,
the
Opera is unsponsored and there¬
contriving
of
via
their
gadgetry
the American
home
4.14
1.36*
2.6
1.97
69,983
5.50
81,068
5.50
1-00
141,449
.15
141,449
.15
1,007,280
211,432
222,517
5.50
942,990
...
Earnings for year retained in the
1,712,378
1,425,389*
2,961,407
business.......,.:
Book value per
.18,168,603
17.87
19,817,222
19.38
939,186
887,764
4,072,051
1,070,104
1,031,319
22,564,376
Stockholders'equity.
22.69
share of common stock
plant and equipment,
before depreciation
'
Net additions to
Provision for
depreciation
Reduction in Debt
Current assets
•
.
...
Current liabilities...
29,162,428
22,478,950
11,822,573
6,096,628
2.5
3.7
Total number of stockholders.........
8,250
8,881
of employees.........
5,185
20,003,682
Current ratio
'
•
•
Average number
Total wages
and benefits.
**As of January 1. 1950
"
the Company adopted the
inventories. Net Profits for 1950 were
.
4,341 ; * 5,113
16,096,438
18,322,180
♦Indicates red figures.
-
878,882
2,334,508*
27,252,989
7,496,553
3.6
9,500
779,962*
3,463,190
.
•
•'
■
.
".'
.
"Lifo" method of valuation of the metal content of mBt
$332,000 less than if they had been calculated on
We will be pleased to
if .re-released on Phonevision.
If the Gordian knot of
send you a copy
of
•
our
the previous basis.
'
/
Annual Report upon request.
econom¬
Bridgeport
CO.
ics
were
worlds
■
cut
of
that
film,
now
*
keeps the
stage,
music,
sports, science, education and all
the correlative art forms from af¬
gramming could flower on Tele¬
make
.
—
64,290
vision!
Much of it would have to
RRIDGEPORT
BRIDGEPORT
BRASS
COMPANY,
Milli at Bridfport, Co tin.
use.
1,934,895
2.2*
might earn over $1,000 per
terprisers—including the big auto
endlessly
Per share of common stock
Total dividends.
•
1,213,957*
4.3
•
that
fording TV their-best—what pro¬
been
44.5
1.64
valued
en¬
companies—have
1.50*
3,968,687**
profit after taxes
share for Paramount stockholders
;
4.35
Per share
pro¬
the
Resurgence of
Home
more
wood
her
Net
Common dividends.
-
a
hours in a week than Holly¬
-year.
1,550,000
53.7*
Per share
ideas.
formerly-produced
some pos^
American
Phonevision
use
a
has
gram
a
1,410,000*
50.8
Preferred dividends.
ford to sell commercial television
the
the
celerate
as
of
television
tions alone have to fill
perfected—
suggest
Phonevision and
of
use
<
inner
realization
even
4,100,000
....
fearsome
grows
—
3.61
,
fry, etc.
jockeying
(3) Now if you will grant the
hypothesis that Phonevision will
ultimately
become
a
generally
available service
and speaking
purely personally, I think that is
income...
Percent of sales.
•
all of the
great things that television could
ingly
:
shows,
bidding
irritation
sharper for these
grow
olizing
does.
now
4.7
2.86*
Per share of common stock.
remove
television
that
on
good
a
4.8*
profit before federal taxes
Percent of
have
that where
agree
have-scarcities,
2,623,957*
8.8
8.49
Total federal taxes on income—
television."
"good
economists
even
learned to
Phonevision
obsolete, fear down the importance of the
decrepit old Opera House in New
the number of
to
the adver¬ place to look for monopoly, hoard¬
unpleasant
tiser and the present commercial ing and some other
stations from the bed of thorns things* Sure enough, there have
been dark mutterings of late about
they now share, by reason of hav¬
ing to be responsible for and pay certain interested parties monop¬
would
minority
would pay for.
limb-hopping:
I'll wager there are enough peo¬
ple within signal range of this
room
to support a Phonevision
To
takes
3,484,895
8,068,687
—
Per share of common stock.
,
it
b^ avail¬
programs;
from
income
station
now-neglected
interest groups,
\
would
sponsored
on.
Percent of sales—
tisers with the number of dollars
to mention the fact that the added
And b,y
this
to
per
limit
a
week. Dur¬
at least be on that end of the limb
Profit before federal taxes on income..
-
$74,875,560
$54,745,806
$91,864,457
Net Sales to Customers.
.
to
be
paid for if enjoyed,
the
is.
But
so
much
more
as
it
now
of it could
BRIDGEPORT
and Indianopolii, tnd.
2,
BRASS
CONN. • ESTABLISHED
In Canada: Noranda Copper
and Brat Lmilnd, Manlrtal
1B65
22
(1346)-
The Commercial and Financial
Chronicle 7i\ Thursday,^ March? 29, 1951
cratic countries. >The British
/and
in
,•"?
By PAUL EI.NZIG
•
'/
;
.
«
■
'
Dr.
Einzig recounts recent developments in the Organization of
European Economic Cooperation and steps to minimize the
cooperates
criminatory credit
volume
total
anti-inflationary struggle of member countries, and
foresees
little likelihood of Britain adopting
higher interest
curtailing volume of credit, though this may be pos-
rates
or
the
it
achieved in 1949-50
University in Ithaca,
about
to
said
than all the vari¬
conferences held with
the
of
appearance
a
/ the form
/son to expect a relapse into trade
rearmament.
There
factor
the
the
O.E.E.C. will minimize
/
XV..
any rate as far
Western Europe is concerned.
restrictions,
from
the
the
fields
a
on
of
staked
its
claim
to
influence
exert
the
on
playing
W. I. Myers
rise
is
basic
prices
automobiles
economic
goods.
With
and
and
a
a
<
of
added,
and
frpch
fresh
durable
the
re-
-
credit
praiseworthy. Thanks to its success in
organizing intra-European payments through the European Pay¬
Union, and in inducing
to
ments
lower quantitative trade restrictions?
O.E.E.C. has achieved considerable
picougc...
not
crusade!"For
althnncrh
oanU
rrnuprnmont
New
rise
faster
not
the fact that
cas^ ls n°t "e"
since
on
but
cost
any
returns to effl*
ninrnrn^npprc°»
cient producers.
New York farm prices are
likely
to fluctuate around
parity—a little
above
or
i
n
g
accumu¬
lated to take
below—barring drought
of im-
care
pending bond
maturities, I
feel that prof¬
its should
now
in
taken
is¬
these
two
sues.
Eastern
St.
Mass.
=
Ry.
^
js
whole
cept
event
in
of
full
scale
»„
traction
a
x
as
certainly in disfavor
are
But this
now.
com- ;
made money
for many
years, and I would like to nomi- >
nate its $100 par 5% cumulativehas
pany
as a
likely spec-
appreciation
H
are not based on
1uired
.
expectations: of
My
ex-
»h.
name
traction securities
jnvest0rs
war.
=£ la//1/ ob/r/d' is'al waXs
Wcih,„h'llfnmh.'w.
better
(a
0f course,
company;>
a
G. Woglom
EaXterX Ma^iuburban,
be
c
B
Albert
r^ory ^ar Disaccording to the Adjustment stock
DearVproduction is high, ulation>
port demand will be moderate
about
to various- fac-
York
Prospective prices will
justify production at
Maine
are
ance, I think.
However, due
tors, n°takiy
costs,
preferred
of
Both
creditperform-
farm
squeeze
than
Railroad.
a
able
be
price-cost
ago my se¬
5%
stocks
on
excellent ;
this stock :
the usually
re"
conditions of high
earn-;
ings, good yield and superior bal- /,
True, E. M. has fine r
umi
micoukc
wuiu
;
■>
•
t-,..
•
.
possibly be used for better purpose*than for;an anti-inflation-;
arv
that
year
the
50% higher to-
in
buy things desired
before price increases or
shortages
indeed
the
explained.
general
shortages and intheir minds, he
individuals used - savings
fintinn
flation
said
a
were
Central
proportion of
on
WOGLOM
Ry.
over
common
com-
shortage-of
other
memories
he
prices
in
cent World War
passed in favor of disinflationary measures to be taken
by
the
participating governments." '
~
'
idea
in
rise
prices of a few
important
modities led to fears of
was
The
lections
and
New York farmers because farm
t
out.3A
breaks
smaller
prices have risen 13%
duced
un-
less, 01 course,
policies of the member countries. In particular it took it on itself
to inspire Western
Europe in the fight against inflation; A resolu¬
tion
■
f
important part in the allocation of scarce raw materials. In this
respect progress has not been very striking
up to now. However,
the O.E.E.C. is
persevering. At. the same time, at its meeting on
it
been
overdone,
-
activities.
claim for
A little
"Price increases since the begin¬
ning of the Korean War have re¬
dol¬
lar have
a
G.
Eastern Mass. St.
still 4% below parity.
are
relapse, at
an
9
of
flight
sharp
Meanwhile the O.E.E.C. has^ found new
It has been
trying for some time to establish
March
e a rs
inflation
the trade within countries of
as
f
and
concerned.^
of
ALBERT
President, A. G. Woglora & Co., Inc.
Boston 9, Moss. 1
June, but they are still 11% below
the peak of June, 1948, while farm
costs are considerably higher.
Moreover, New York farm prices
since last June
Nevertheless, it is to be hoped that the efforts
Einzig
prices
farm
flurry
ary
take
Commenting specifically
inflation-
an
wild
rearmament
the trade balance of the countries
Paul
al-
in
owing to the adverse effect of
Dr.
that
rea-
is every
Security
I Like Best
*
the industrial worker's weekly
pay
check than before World War II.
has been quite
However,
new
\
\
of
The
1
does
present levels, expenditures for
food
March 19
on
though there
that the prospects of further progress
the same direction are not very
favorable,
lowing
it
day,
at
inflation, Dean W. I. Myers
progress
object in view since 1947,
same
that
the
on
seems
in
>
more
international trade
luck
people.
Speaking
at the
"Farm
and
Home Week" gathering at Cornell
towards the removal of trade barriers between
the member countries.
Indeed it may safely
be claimed that in that direction the O.E.E.C.
ous
trust
,
received from the United States.
has acheived
and
Myers, of New York State College of Agriculture,
lays recent price rises to fear psychology and hoarding. Says
international tension and prospect of
smoldering war may last
longer than 15 years, and farmers should be prepared.
functions went far beyond the mere allocation
was
credit
Dean W. I.
during the Marshall Aid period the O.E.E.C.'s
Considerable progress
of
Foresees No Wild Inflation, Short of War
:'*
LONDON, Eng.—On March 9, 1951, the Council of the Organi¬
zation of European Economic Cooperation passed a resolution
laying down the foundations for its activities after the termination
of payments
the
This is an example to show that it would be
part of the O.E.E.C. to try to apply the same
remedy everywhere, even if the disease is the same.
mistake
sible in other member countries.
of Marshall Aid. Even
reason
become unavoidable.
a
can
in
exert
of
government to
In most other European countries there
discipline, and indiscriminate credit restrictions might
Warns against excessive
optimism about the practical influence that 0. E. E. C.
banking system is highly disciplined V Continued
from page 2
grand
not hit the wrong
is no such
•
the
the utmost limits of its
it is possible to enforce in Britain disrestrictions instead of having to reduce the
capacity^-For this
,
effects of end of Marshall Plan aid.
with
ie
^y crusade. For, although each government is
nf
_
~
prices to get ahead of the
nnnfed
of course awareof
the danger andvis
doing much towards averting it, the activeinterest taken in the problem
by the O.E.E.C. is bound to be helpfuh
That organization enables the
governments to exchange informa-,
lion about the measures
adopted and their effects This: means -that/ f
each government will have a
chance of learning
by the mistakes;; I
of other governments/
Moreover,' whenever there^is some inter-;
national body engaged in such,.a
task, there is.always a
.-5
M
auuuj
iu
maivc
able* to
ex-
freeze and
aggressors
quate defenses. ;.:.v
'v
demands of consumers., A
r
Recognizing that
will
goods
and
that
be
in
wen
unm um,-
through
ade-
6
in
consumer
supply
incomes
will
good territory,
•
an
fact,
.
also.'
t
earned surplus deficit, and, 1
deficit in working capi-
a
tal.7 The important,
that
and
•.
it
has
thing to
arrears
of
me
$105
/
is "
per 1
share, .is selling under; $50, and 11
:feel^asonabI^eonfiden,: tilat rra;
creases. made me
-
fairl>r good earnings, b t
has
some consumer
limited
-
.
„
10ns*
healthy
spirit of competition among the participants to show
that they 4
doing at least as well as the <other
participants.
It is
necessary, however, to warn against excessive
optimism
«boutv the practical influence -that*
the: O.E.E.C/ can exert in the
anti-inflationary struggle of
its member countries;
There
can"
110
be
inn
question of devising a set of rules Which would be
applicable
to all Western -European
countries: The resolution: passed on March
9 in favor of
disinflationary
-
measures
■
-
was
,
,
,
,f
f
««
—
__
i/S^dj .addfngt that;.this nation faces
wrongly interpreted in
-
should .watch our wiitd,
jforx the jjoultry,"; fresh fruits; and
vegetacontest
i$ '-likely to -, bc/a long,
i
bles and other choice foods.* These"
'gruelling
cross-country
race—rnot
1
are
important products *-of" New
ri
i a .^ '"^a,r.
a?
€S??r Myers
farms and;he remarked that
-
:
—
the best opportunities lie in
con-
Rtospect ,vofw smoldering, ••war/.tinued-full; efficient"production*
"
Myers listed
j.
.
..
its resolutions
ized
very
that
the
on
its member countries.
circumstances,
the
of
Moreover, it is fully realparticipating countries vary
widely, and that the anti-inflationary
them must
vary,
accordingly;
-
;
measures
......
.
A
.
required by
...
:U. S. industrial capacity will come
,
Savings Certificates and Defense Bonds. There is no
reason, however, to expect a fundamental
change of British monetary policy."Although Mr. Dalton's policy of forcing down interest
I
rates was
abandoned when he left the
Treasury in 1947, the government remains in favor of
cheap money.' There will be no deliberate in¬
w
1
.j
crease
of
The rates
u„
interest
on
vvi VUI/
rates
m
for
the
1UI/VO
vvao
.
sake
of
Savings Certificates
Dean Myers, expressed the opm?ion that if another world war= is
avoided, the greatest pressure on
»
counteracting inflation.
seven
of
sugges-'
farmers:. (1) Maintain
farm production at full
capacity
but emphasize labor
efficiency and
nuns
xor
controi
0f
costs*
(2)
for'
the
emolovment
provide full
available
la-
reasonable prospect for relaxation use credit necessary for efficient
eontrols ai^d increased .produc^ production; but pay debts as rapn °f .consumer goods after 1952,
id.ly
possible; (6) postpone coni
The most important single fac- struction of
new
buildings when
tor
in
controlling inflation, he possible, but keep essential farm
said, is the great productive ca- structures in repair; and (7)
keep
pacity of industry and -agricul- a financial reserve
in
Savings
as
north and south of Boston, under
exclusive^ franchises^ .on
fare,-zonal-basis. In
a
10-cent '
with
businesses, it had tough sledding in the depression '30s, and
,
common
•
^11
vc
dividends
on the 30,494 shares of ^
preferred A; 21,178 shares of pre-/
-ferred B, and 64,603 of adjustment.
were
deferred.
By f
however, business was good ;
enough to resume the regular $6 :
preferred
dividend
which
are
now.
have
-
was
the
A
preferred, ;
continued to 1943. Then *
on
down to
reason
balanfeb
made
only $10, and I
believe
to
fan Gf this year
will
see
that
the
on
the
this small
cleaned
up, and
adjustment
start
a
arrears,
and Defense Bonds were
It is worth noting that while the
raised
order to counteract the
arrears were
ture.
The inflation since June is Bonds,
falling trend of small sav¬
being paid off, the
bill rates were allowed to
rise owing to the'
due largely to private
in
preferred* sold as high as $124,
spending
conclusion, he aKn
also nninf^rf-A
pointed
increased risk attached to commercial
and
operations, due to the sharp:
public psychology and'notJ out to the members of the Future and the
preferred as high as
ricp
in nrir/ac
TroocnvTr
rise in
prices. "Rut
But tV»o
the Treasury
is not likely to offer a higher into government-deficit financing, Farmers of America that the pres-* $145.- Bear in mind that, at no
terest rate than is
absolutely necessary for its operations.
; " since the federal budget is in bal- ent is a reasonably favorable time time were arrears as hign orrtnese
Nor can there be a
curtailment of the total volume of credit.
ance for the P^sent fiscal year.;, for young men to start farming,
This would be very
:
difficult, because owing to the rising prices
t
After the present period of hes--especially when it is possible to do '
and wages there is a
substantial increase in
;
legitimate require- • itation. further moderate price in-so. on a rental or partnership basis
senior
ments of credit. What the authorities
creases
will aim at is to neutralize
occur,
the
Cornell
wnnuui neavy
the
greases may
may occur,
the
Cornell without
heavy ;aeois.
debts. Since
Since the
e
e
g on
-.
euch increase by
Dean stated, but at a slower rate Pnce level is very high ; and a spective prices,
cutting down consumers' credits and other forms
than
in
recent
months.
Retail sharP dr°P is possible sometime, a of nonproductive credits.'
ln summation I think the rec'
* ■'.
"s>.
7
prices of food didn't decline much larger; net -worth is needed' for ord proves the willingness of diOne of the reasons why it is
;
possible in Britain to disinflate to
?in 1949 when farm prices
to withstand bad ;rrect0rs to give stockholders a fair a considerable extent without
:
years. > In view of the rapid inresorting to the orthodox methods s
sharply and they-have risen 11% crease
in
of higher interest rates and credit-restrictions lies in
population
and
food
I cant see why they ;
in
February in
ings.
.
Commercial
hTconclusion
.
"J*® „as ™. tba adJ"a'maP'
/tv ,r.yh. Inior icc/rwoi.M
quality ot tne
lssuesjvouia
dropped^^/reasonable s^ety
,,
.
,
,
,
the-existence
of
a^higRidegree of -economic discipline.
■OBLforced
more
5
Physical controls can be:
effectively in Britain than in most other demo--
—
_
,x
.
.,
Play»/and
jsince June. They will probabiy* demand, the long.run outlook, for- shield, in view of that,
record,
'.increase:a little more to'
reflect/efficient; productive \Ne\v, "York suddenly stop short of the adjust;higher/wholesale prices but even farms is* favorable.. .V.
; ."**/
/U ment stock.
.\
j
,
<!
,
.
\
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'Number4998
Volume 173
.
.
.
^ **
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iHtmfMMWi'TWw («mi*wnr MWim* MMMNMMM
I WVWilW' PWWBiWf'VW' IPiW 0^ W^i1} NK* u k#fai
tf" I
The Commercial and Fimncial. Chronicle
(1347)
cently reported a significant drop
in working, stocks of industrial
materials during February.
(In
any event, a number of the orders
ban consumption as well as acqui¬
sition.) Output of the major ma-
Foresees SomeDecline in Building
Mortgage Bankers Association of America looks for lower
private building activity later in year.
clearly in the latter part of the
year,
according to "Washington
Letter" of the Mortgage Bankers
in the trend of
applications. Applications for
Section 203 financing in January
were about half those of a year
ago —13,000
as
compared with
25,000—while because of the lapse
of Section 608, applications for
project financing during January
terials, after reaching a peak in
the second half of 1950, have
shown little tendency to rise since,
"Again, while initial cutbacks in
allowable consumption may be
absorbed through substitution and
elimination of nonessential parts
and decorative applications, a second cutback of the same size may
Association of America.
covered less than 10,000 units com-
reach the vital
While
home
new
coming
credit
«xert
an
have
begun to
important restrictive in-
which will
"On
is be- cline shows up
that government FHA
evident
limitations
fluence
the
"Other evidence of future de-
construction,
continues at record levels, it
be
felt
more
housing pared with over 63,000 a year ago.
an
esti- In February, the one- to four-
the
surface
boom
continues.
mated
87,000 units started during family house applications are ex-
With
January, the year's beginning
the
strongest
ever
8,300
—
was
pected to be about the same as
units January while project
applications
Febru- will be much lower.
Although
ary, 1951, is expected to exceed comparable records are not availthe 82,900 of February, 1950; and
able, VA requests for. appraisal
the outlook for March and April
appear aiso to be much below a
is good.
It is certain, however,
.
that the bulk of this large volume year a^0,
These indicators point
is the result of plans made, fi-.to a drop in activity after the
nancing arranged, and, in many carry-over of commitments has
than
more
January, 1950.
.
eases,
months
that
of materials acquired
even
builders
off
It
"*
is
°t early to conclude
rather
product,
r/
that the re
20%
tial construction
above
Mobilization Burden Toward Year's End
•
,
lights,"
a
.
tt*
,
"Business
to
Highrelease of the National
Industrial Conference Board,
prepared by Albert T. Sommers, of
its Division of Business. Statistics
events
putting
special frame
or -eight
of1951,rsetting it ,apart as
the time dEor the uphill climb of
are
around
the
first
a,
-seven
months
the
mobilization, the-period when
phase is
much of the transitional
to
-
be-completed.
The
period,
'from
a
unique character of this
the -report states, stems
number of iConsiderations.
In the first,place,-defense expenditures are -expected to continue
to
-
rise
rapidjy; Weekly figures
for early. February; suggests military spending.irate of about t$23
billion annually-as. compared wtth
HTthe • .year^end ;Tate1 t>L3$20: billion.
: .And ^there-are ^underlying Jndica;
tions of a 'further speedup in ;procurement--i-amdngihem the recent
-jump Jnsteel rseUaside -percent.ages-
and: ^he-cutback in permis-
?sible^<use^<of \steel4or .automobiles
In theseeond quarter. At the same
lime- there
change in
has
been
the /outlook
no
for
major
total
output.
Secondly, itseems doubtful now
for forging the mobilization will be in use
by summer.
Consumer income
won't be affected by new taxes,
Rationing, is not - yet near. No sigwhether any new tools
siificant. intensification
of volun-
tary savings programs has gotten
binder way.
Manpower controls are
still in
early thinking stage.
an
This combination of factors,-ac-
,
may
(and
have set
tion
ago.
were
\
about
double
inum, copper, nickel, tin, cadmium,
and
,
leather
have
been
a
We
year
,
do
dramatic instance
not
are
become
«
"Here^too^frowever, the
end-use limitation. Alum- the dip may come4n'the
rates to
all-
an
more
man's
test of
quarter, when residential buildiPg activity normally Scends a
brought under such direct bans, pronounced seasonal pattern "
effective now or in the near future, and in April steel comes
under a ceiling limitation in auto- it*
us
gratified to observe that the Senator has
of
aware
aspect—of
a
very
Would
faS SSeraS-
.
•
followin^
a
is,
own
right.
Exempt Investment Income
Up to $i jOOO from Federal Taxation
Alexander S. Lipsett, of International Labor News Service, J
it would offer welcome relief to small savers, elderly,.
,
-says
people and others Jiving on fixed income, and also- encourage
ownership of government bonds and other securities.
*
Writing in the March 17 issue of
"International Labor News Serv¬
ice, "serving newspapers loyal to
the American Federation of
Labor,
Alexander S. Lipsett, its Executive
outlook for long-term
thus
/
investments,
the national
strengthening
economy.
<
•
.
"Specifically,
a
citizen 'in
the
20% tax bracket with, say,$2,000
Director, proposes as a remedy to of
savings invested at 3%, would
existing inequities in taxation, an benefit by a 25% income boost
amendment to the income tax law
from this source. As to the gov¬
that would exempt the first $500
ernment, this exem ption would
to $1,900 income derived annually
attract new savings to the bond
from invested savings.
Total'market value,
*
of diversion had nbt'get materialmarket, place public financing on
stocks and bonds.
^$228,087,813,000
"Unless our tax system actually
a stable basis,
ized in any serious -degree.
and last, convince
New York Stock Exchange and helps to inspire economic initia¬
small
savers of the desirability ol
"But this picture could change
fnS/w tive and
encourage
thrift it is
hanging on "to their war bonds.
quickly, and
by mid-February
figures are as set forth by bound to fall of its own
weight,"
there were signs that it was chang-those-exchanges. There is no du"It is true, of course, that the
Mr.
Lipsett states.
"To regard
ing. Representatives of small busi- Phcation of issues between these
taxes as a cure-all for inflation proposal would deprive Uncle Sam
ness
were
complaining bitterly two exchanges, but many of the
of a take estimated at $350 mil¬
and raise them to ever higher lev- ■
about metal supplies—particularly
jve. ??' them are also
lion annually. However, the loss
els without
,
steel-—even before the latest jump
in
set-aside
percentages.
Manufacturers of aluminum consteel
admitted to trading on various re-
SJ01131 exchanges m addition to
the amounts shown above tor tne
structional specialties were taking re&10nal exchanges only.
.
a
gloomy view of the future.. New Y o r k.Stock ]ExcJtiange
Members of the rubber industry bonds include $96,85^,382,000 U. b.
key areas :of the .-mobilization,
Duringj.Pthe intermediate - run,
much as 10% of a plant
work force (again before theiatest restrictions limiting tire types,
and before the announcement of
another cut in non-defense use of
rubber effected March 1). There
plans for cutting the
work weekend laying off, in one
case,
as
Government, etc-> f^ ^447,776,UW
U. S. companies,-$912,684,000 1orgovernments, etc., $441,545,-
'Mjj
companies, and $250,-
quences
selves.
regard to the conse¬
is merely to delude our¬
It is to make sure that the
American people and the system ;
they represent will be the biggest
all-time losers.
"What is the answer to the
nundrum?
It
in correction of some
equities of
co¬
lies, I believe, partly
our
of the in¬
federal income tax
legislation, especially as they af¬
550,000 International Bank.
only a minor assist from credit
New Yor-k _St^k Exchiange fect returns from individual sav¬
controls) .must bear the burden of
stocks include $8,119,520,000 pre- ings, dividends, etc. Congress, I
shifting production into defense
ferred .and $83,773,093,000 com- am so bold to propose, should give<
goodsr-in the lace of unprece- were sporadic reports of supplies mon of U. S. companies, and $^0»- serious thought to an amendment
dented levels of .disposable income of various grades of stainless steel, 631,000 preferred and $1,885,025,- which would exempt the first $500J
bearing on the consumer 'goods zinc, cadmium, and brass ingots 000 common of foreign companies, to:$l,000 income derived annually
they must
materials,
real hazard and is de¬
aspect — albeit an important
much broader evil, hut it is one which
needs attention in its
All Listed Shares
announced
markets. rThat--means
)
to
Estimates Value of
cording to the report, serves to
illuminate .developments in two
piecemealmaterials controls (with
i';
(<
want
termined to take appropriate action
promptly.
The situation to which he turns his attention
of course, hut one
second
motive, appliance and other applications.
"At least for the time being, the
r
A
c ,
f
th#> cation
nn
technique of end-use limitation is Exc'hange Registration and Reeuapparently being developed as
supplementary to the across-thehoc
board percentage cutback, so that th
aggregate market
from now on the cutback percent- ™eaggreg^e market
ages will no longer be accurate
he
guides to the extent to which
basic materials are being dia
*
r„n
verted from the civilian sector.
stocks
•
' ^Whether thesecUtbaoks»«xi»ed,
J
equal or fidl Short of the meeds
of military procurement continues
i'ffc $110,996,335,000
to be^a"$64 question. Employment
statistics seem to indicate that up
York stock Exchan«e.$ii5,951,939,000
to February the "interim dip' that New York^curb Exchange..
957.839.ooo
was
widely -expected to occur A11'other
s.,*exchgs. only
181,700,000
:
■"
'<.$117,091,478,000
while materials Were in process
P
.-tt*
forget .that a television
camera is a
two-edged sword which can wound the
innocent as well as the
guilty."—Senator Alexander
-Wiley, Republican member of the Senate Crime
Investigating Committee.
month
well
Alexander Wiley
more
used,
wildly, with less and less restraint,
innocent
an
"I
ago. Nonfarm hous¬
for the
some
almost 25%
February). Ex¬
penditures for industrial construc-
have gone deeper, and have begun
to shift from simple percentage
cobalt
record
industry
and
until
and
comes up in Which,
reputation is completely
ruined. Then the
people strike back at the 'mon¬
ster' they have created
by passing repressive rules.
I want us to
anticipate this danger ahd prevent it
from occurring in the first
place.
~
another record in
,
,
year
were
more
more
say,
yet.
January, 1950.
private residen¬
ing starts in January set
time
the
be completed
a
usual history of
development as this
'baby' is that the medium
TV
above
on
the
such
becomes
were
than
Industrial Conference Board Looks for Full
According
"Now
some
construction expendidown somewhat more
seasonally, they were still
will not tures
i
duction with
hamming and
phony theatrics, or an unjust
inquisition
of
people
under
klieg lights.
parently absorbed an initial cut in
its consumption of nonferrous
metals without a proportional reAuction in output of cars and de-
as
self-regulation by Congressional committees of their
ings should not be allowed to
degenerate into a three-ring
circus, a fourth-rate stage pro¬
a consumer
such sign has appeared
g
gress. committees would be put
on notice that
televising of hear¬
mand for steel.
"There was some ground for believing
that
the
'interim
dip'
would show up quickly and secertainlv verly in construction activity. No
.
[Senate Rules Com¬
TV and related
processes. Con-
and
This
Expenditures
Holds transitional phase of economy will then
-and controls tightened.
of
23
up with helpful suggestions—
not laws—which could serve as a basis for
come
voluntary
reduce output severely.
may
explain why
automotive orders for steel have
not fallen as rapidly as NPA anticipated. The industry has ap-
about
;
zone
"I think that the committee
mittee] could,
,
* ?
than
buying strictions so far imposed
bite deeply."
expanded operations.
inventory
land for
are
worked
been
indications are
using up land
All
ago.
#r*¥Ww«*rtfW»<Vi
that
were
going
without
takers
_
New York Curb Exchange stocks
from invested
savings.
of revenue will be more than com¬
pensated
saving
by
billions
ment
of
the govern¬
in
dollars
the
goods needed for the de¬
fense program. When we consider
that inflation since June, 1950, has
cost of
cost the U. S. $6 to $7
billion (thus
wiping out earlier tax increases)
and
that, according to Senator
Case, rising prices account for the
loss of 100 times as many planes
as were
need
the
of
lost in actual combat, the
tax
remedies that go to
is self-
roots of the problem
evident. '■
'
conclude:
"To
ment's
revenue
If
the govern¬
policy
aims
at
"Although this proposal may run preserving and stimulating the in¬
include $705,786,000 preferred and
centive
and
ambitions of the
ahd they must keep the rate of use.
$2,216,197,000 common of listed contrary to present tax trends, its
advantages not only to the govern¬ American people, here is a way
'diversion Irom the
civilian^
sector
«And the picture may sharpen
ment but to all sections of the to prove it.
The issue .is up. to
in
a
running, balance with the rapidly in the next few months as ^rred and
$10,095,652:WO compion
demands of military procurement, restrictions tighten
In -the first
unksted companies some of public are obvious. It would offer Congress. Unless the people's in¬
shift
labor
as-
well
as
because of restrictions on civilian
_
.
Continuing,-the report-says:
place, inventories at the producer which are listed on regional ex""Phe-wage-price,controls (again(-jevel, which may have "served, as changes.
with minor help from credit con- a
buffer, have dwindled rapidly
Not all the outstanding amounts
trols) are left almost-alone in the sinCe Korea. To the extent that are available for trading. For exfield tostemthe-wage-price spiral
they reappeared in rising inven- ample, about $2,220,000,000 of the
,
quicksands of inflation and
new strength is again infused into
the habit of national thrift, new
tute
a
long overdue step toward
revision of the destructive device
tories of consuming industries,
,
-
0
against
vestments
derly people and others living on
a fixed income.
It would consti¬
at *$2,660,000,000 market value of of double taxation of dividends,
^Income levels)., :
. Jeast
some of the protection bir- Creole* Petroleum
and Humble and encourage owners of govern¬
! ^"Materials -controls .-have now nished by - them ;is doubtless -ex- Oil, traded unlisted on the Curb ment and corporate bonds and
Mr6tdied^crbs^^ Jiiajor/part of -pended now. Th^-.National Asso- is owned by "Standard.Oil of New stocks to retain and increase -their
savings.
It would improve the
the industrial market. * .Cutbacks ciation of Purchasing Agents re- Jersey.' ' *
!
(again in the face of inflationary
shored
welcome relief to small savers, el¬
are
up
the
and
bigger taxes will
snare
and a delusion.
piove but
a
To approach
problem in any other but a
daring spirit is lo lose the battle
the
against
gun."
inflation before it has be¬
fjr-
24
(1348)
The Commercial and Financial Chronicle
uation
of
the
dollar
also
was
stock
a
The current weakness
By WILLIAM J. McKAY
seasonal
opment in the coming fine weath¬
er
season.
Out-door operations
ment has
of all
tween
kinds
are
try.
This
re¬
the winter months
accumulation
seasonal
Many
there is
year
ects which
of
unusual
an
will add to the normal
acceleration
have been in
of
activity.
schemes
which
the discussion
stage
for many years are now
likely to
be put into immediate operation
the
world
strong stimulus of the
rearmament
In
program.
addition, the postwar industriali¬
zation
a
boom had already created
persistent demand for raw ma¬
terials
which
has
been
increas¬
ingly difficult to satisfy. It is only
natural
therefore
dormant
wealth
that
of
the
vast
Canadian
tural resources should
na¬
attract
now
world-wide attention.
Preliminary work
bec-Labrador i
with
r o n-o r e
tidewater
has
rence
rail¬
deposits
St.
during the
importance
of
iron-ore
has
this
also
According to recent reports
is
every
probability that
soon take
independ¬
ent action in the absence of U.
to
embark
S.
joint
opinion is
on
Canadian
a
unanimous that the construc¬
tion of this Seaway and its related
now
projects will mark a new
Canadian economic devel¬
power
of
era
opment. Furthermore the value of
a
sheltered
water
route
which
would
move
permit
ocean
heart
all the
of
in view of the
ation.
tion
shipping
to
from the Atlantic to the in¬
dustrial
takes
on
It
North
more
America
significance
international situ¬
requires little imagina¬
also
to
foresee
the
transfor¬
mation that would
ultimately take
place of the vast
undeveloped
hinterland
bordering
the
Can¬
adian side of the St. Lawrence.
Meanwhile
ambitious
there
similarly
are
development plans
der consideration
Pacific Coast.
un¬
pany
tablish
a
new
Continued
lbs.
per
to
annum
The
Canada
no
developed
ing
pro¬
in
particularly firm
a
of
rumors
on
the
from
17
page
in
River, drive a 10 mile
through the Cascade Moun¬
tains, install a power plant inside
the
the economy
The
rise
well
as
in
at
in
the
purchasing
Speed-up
•;
scheme
to
es¬
vate
borrowers
loans
to
been
accom¬
has
develop¬
farmlands
of
northern
British
these
important
should
be
Saskatchewan.
full swing
will also be
Numerous
exploration of fresh
drilling for
wells,
new
plans
acreage,
and
con¬
struction of oil and gas pipe lines
are
already
in their
final
stages
and will be pressed into
operation
during the short fine weather sea¬
It
son.
has
also
just
been
an¬
nounced
that the Anglo-Iranian
presumably as a result
of recent events, is
investigating
the possibilities of the fabulous
Oil
Athabascan tar sands of Northern
Alberta.
It
has
been estimated
this
sand
area
300
1,500
has
billion
probably
though
square
oil
an
barrels
the
of
source
oil
the
content
and
richest
in
milen" tar
the
is
of
thus
potential
world.
development
of
Al¬
the
Dominion's
new oil fields will be
the main attraction for U. S.-Can¬
adian venture
for
new
base
precious metal
summer
of 1951
be recognized as an
epic pe¬
of Canadian economic
prog¬
ress.
During the week activity in the
bond market was largely confined
to
switching operations in Do¬
points,
holders of recorded
exchanged them for similar
unrecorded
sales
of the
the
issues.
The
resultant
Canadian dollar pro¬
mainly responsible for
weakening of this exchange
was
rate which declined to 5%.
Liqui¬
dation by disappointed holders of
internals
purchased
last
summer
in anticipation of a formal reval¬
Corporation
Controls
easier
conditions
to
sell
sometimes
'
have
goods.
it
made
SECURITIES
CANADIAN STOCKS
Federal
control
field
since
outbreak
have
been
ward
the
quotations
on
any industrial, mining or
oil
security, consult us.
A. E. Ames & Co.
We
can
help
you.
incorporated
jMlilner, R-
Two Wall Street
New York 5,N.Y.
OSS
&Co.
Members:
The Toronto Stock Exchange
1-1045
The Investment Dealers' Association
of Canada
330 Bay St. Toronto, Canada
^Hamilton
Brantford
Windsor
,
the
Korean
but
to¬
three
(1)
Increasing production and
productive capacity, (2) diverting
,
production
and
to
defense
capacity
in¬
going ahead in indus¬
try and agriculture.
orders
relating to
materials, es¬
pecially nonferrous metals, are
now
in effect. An important cut
1.
of
use
steel
Even
most
various
becomes
effective
thus
so,
finished
far
April
output
products,
even
of
of
durable goods, has been
at exceptionally high
consumer
maintained
Sudbury
Brampton
and
figure- probably
ruary
will
also.
These facts illustrate the
necessity
for
studying closely:
(1) The exact nature of cutsimportant allowances have been
made
for
inequities
in
the
first
half of 1950 base
period;
(2)
the
beginning this
now have direct
we
controls.
wage
differences
between
These,
too, take time to establish and in
our type of society,
especially in a
period of only partial mobiliza¬
their5 successful operation
depend in good part on their
able
and
being
as
reason¬
backed
by strong
anti-inflationary fiscal, monetary
and
credit policies — including
general as well
selective credit
as
controls.
They
it
have
difficult'
more
gests
that
have not
anti-inflation
been
stopped
and
as
above
the
of
talk
of
consumption
before
sug¬
policies
swollen
incomes.
This increase
upward—and
the
pensions
control
value
down¬
mechan¬
possible
was
did
in
we
advances
and
speculative
buying continue how will this af¬
fect production controls?
and
The
Changes in Controls
control
problem for the
certainly looks pretty big.
Defense outlays in the next three
future
quarters
expand
have in
may
twice
tion
as
not
matched
goods coming
on
amount
timing
creases
and
of
to be authorized
tax
as
in¬
is
still
an
off¬
uncertain.
Formulae
parts and finished prod¬
for wage and price
ucts; and
ceilings permit
(4) the possibility that restric¬ further upward adjustments.
Un¬
less
tions may be changed one
demand can be
limited to
way or
the other as
changes are made in supply at close to current prices
progranis for defense
production, by fiscal, monetary and credit ac¬
armament program.
tion—or by
voluntary action to in¬
saving — achievement of
stability will be difficult indeed.
crease
One
Strengthening
of
Anti-Inflation
Controls
passenger
and
other
fact
tending
to
the
ease
situation is that substantial inven¬
tories
cars
are
quently,
now
on
hand.
inventory
Conse¬
accumulation
consumer
durable goods, and for may slow down. Inventories
re¬
residential building, selective anti- ported
now, however, are not as
inflation credit controls were ini¬
high in relation to sales as in 1948.
tiated promptly.
As the record Emphasis in the present economic"
shows, the expansion in instalment program on
expanding capacity
credit
has
been
stopped. From tends to limit market supplies now
September to January instalment and to increase them later.
credit
outstanding
it
rose
reduced by
was
$90 million whereas
a
year earlier
by $900 million. This has
tended to lessen demand for con¬
durables and other goods
sumer
and
thereby
vances
duction
to
check
but
Jb>s
not
in
sales
or
earlier levels.
]co
price
t.o
a
ad¬
re¬
output below
in
there
because
have
we
then :
and
now
;
mid-1950.
Thus,1
nearly eight
were
potentials than in
this
reason
If somehow the
1940.
could not
we
now
For
-
in-
•
the share of gross product
1940 to
40% at the peak and
over
in consumption.
The present program, however,
for much less increase in 7
calls
at
share of production going for
the end
of
later.
more
to
from
—
outbreak
9%
so
6%
to
1951
the 7
before
perhaps 15%
and
With the
share
rising
far the increase in pro- 7
duction has been greater than the
in defense takings and there
rise
have
been
goods to
more
to
sell to ;
as in- ;
ventories, and to use in plant ex- 1
pansion. In view of this and of -
consumers,
the
further
tion
which
accumulate
increases
be
may
in
produc¬
expected,
it
clear that, despite necessary *
curtailments in output and sales •
of some goods to civilians below !
seems
early 1950 levels, consumption in '
aggregate can be above the ;
the
level
of
may even
that
period.
too
to
far
a
away,
production
time
could
look
plenty not
problems
and
might diminish. But
present
of
relating
price ceilings
as
long
as
the
international
situation
continues it is difficult to visualize
'
present expanded takings of consumer
goods
as
a
whole—though *
clearly not for some important
types of products. In the closely
related field
of residential
build-
thousand units set last autumn.
enterprises
to
:
Production
be available to maintain V
business
forward
.
somewhat
be stabilized and if consumers and
could
-
at the same time have an increase
irtg a considerable reduction was
implied in the goal of 800 to 850
situation
;
going to defense the way we in¬
creased it from almost nothing in
as
set to these increased defense out¬
a
not
million
crease
Future Economic Developments
lays
as
do
price
tion, due to inventory accumula¬
or
the 1940 level;
resources
unemployed, in mid-1950
only three million. In short, the
tion
stage is reached in the whole
over
in-:
-1
.
level of consumption in 1950 was '
much closer to peacetime produc- •
operating be adequate
inflation, thereby
encouraging saving? If not and
now
Korean
new
"
to check further
the market. The
stages of distribu¬
sharply
by
-
partly
have
not
1940
the
of
.
per
or
mands,
defense
and in various
level:
but civilians ate
which
the
the:
at
good deal !
a
"bedrock"
a
creased
by
timing
production
was
in¬
capita than ever •
since,
and
generally
raised consumption levels, except:
for a few types of goods in limited
supply because of the war effortsMany of the so-called "shortages":
were
not
shortages relative 7 to
prewar; standards
but
simply
more
expenditures
in
about
meat
about
and
level. There
stitution
(3) the differences
between
changes in
maintained
was
level
1940
1941
adequate thus far.
and
were
building, which is regarded
continue
Will
gasoline
products
had substantial idle
savings
and
was
vestment,-
they
the three
quarters just passed and these are
redesign;
other
and
cars
goods
rationed, consumption in the ag¬
gregate, not including new home
much
product
altogether
some
changes in materials consumption
and output, due to material sub¬
and
consumer
What about the future? Will prices
of commodities and capital assets
of
,
shortages relative to wartime de- ;
:
Altogether, the price chart
ward?
duction of about
140,000 per week.
Corporate
quarter.
being widely accepted
and
Restrictive
con¬
revenues
Finally,
year.
price
may
are
fourth
flected in
tion,
creases
already
increases adopted in Septem¬
and
December
will
be re¬
ber
purposes,
Production
for
the
(3) checking inflationary de¬
velopments.
the
substantially to approxi¬
in
stand out:
For
For information of
Boston If, Mass.
in
directed
objectives
many
tributed
has
other
some
taxes
tax
actions
economic
SERVICE
Fifty Congress Street
made
thoughjoutput of passenger
September increase in individual
mately balancing Federal accounts
V
stockpiling, and the like,
CANADA
NY
;
on
Marketing
Boom
income
levels, as is evident in the recent
isms
capital, the search high level of passenger car
pro¬
and
therefore that the
ceeds
Municipal
effective.
more
deposits will also be energetically Along the same
line, housing unit
pursued in the coming months. starts in
January exceeded the
It can be
confidently anticipated high year-ago level and the Feb¬
bonds
Provincial
reapprais¬
Development of Production
Co.,
that
and
measures
proj¬
in
there
intense activity in the rapidly ex¬
panding oil fields of Alberta and
for
control
ones
Besides
2%
Government
"
Selective Impact
pri¬
ing the possibilities of making old
Columbia.
minion internals. Attracted
by the
differential
of
about
CANADIAN BONDS
power"
A
large volume of commitments was to deliver goods but deliveries,
outstanding in October when the nevertheless have reached new
panied by a seven billion dollar Reserve Board's Regulation X be¬ peaks. Consumption levels, more¬
ing 1.6 million h.p., and then con¬
increase in the money supply, i.e., came operative and when FHA over, have reached new highs. In
nect the powerhouse to a smelter
the total of currency and deposits. and VA regulations,
already made real terms, consumption is:
to be constructed at Kitimat
by
The rate of
use
of money
has less liberal in July, were tightened greater than in 1940 by over one-,
means of a 48 mile transmission
also increased. These credit and further. It is too early to tell what half in the aggregate and by
line. Eventually it is
a:
expected that
along with the borrowers will do when these third per capita. Again, as in the,
Kitimat situated on tidewater on monetary facts,
other
facts
commitments
are
used
early
already
the Douglas Channel will become
up or what
1940's, we are faced with
reviewed, help
to explain why
a
inflationary pres¬ expansion in demand may result questions concerning cutbacks in *
city of 50,000 and will constitute
sures have been so
an important factor in
great and why from the easing of credit terms consumption as the defense pro- opening up
on defense housing.
gram develops.
to civilization the rich but hither¬ as time has gone along the gov¬
;
„•
■>"> V 'A
ernment has been developing new
In the second World War, even
to largely neglected mineral and
In
the
field
of
taxation
the
the mountain capable of
bank
will
Moderate,
housing starts continue
high level partly because a
a
t
in the second World War, *
be danger of further '
as
of money later.
New
out of
as
further
outlays at home and abroad, in¬
flationary forces will
be very
strong and price controls very'
difficult indeed to operate. And if *
liquid assets are again accumu-.
decline
Impact of the
Unless
promptly, to offset
of increasing defense
effects
lated
higher tax rates.
situation.
current
an
merger
Mobilization
Lechako
riod
aluminum industry
4-2400
action is taken
was
Canadian
favorable
WORTH
lines that will be effective in the
troleums
there
the
prepares
tunnel
Despite the failure
Canada's
in
trend
man¬
impend¬
with Home Oil Co.,
the largest independent oil-com¬
pany in Canada.
interruption of
aluminum production. In order to
accomplish this $550 million proj¬
will
immediate U. S. collab¬
in the Aluminum Com¬
of
holiday
nounced
ect it will be necessary to dam the
the Canadian
on
to secure
oration
lion
summer,
Canada will
agreement
the
never¬
proceed
way for the realization of Alcan's
objective to add another 1,100 mil¬
this
stimulated renewed interest in the
operation.
which
into high gear
summer months.
The
move
long discussed St. Lawrence Sea¬
there
Canada
that
of
to
Government of British
ects
source
decided
a development and extremely
important to have production and
price
controls
operating
along
aged to push through their peak
of the year. Federated Pe¬
feature
of the
such
were
recent
enterprise.
An agree¬
just been concluded be¬
the
op¬
tremendous
way.
of
Law¬
already started, but
erations will
new
the
on
this
exerts
Thursday, March 29, 1SC1
.
.
„
the
on
which will connect the Que¬
road
been
view
Columbia and the Aluminum Co.
large-scale proj¬
ambitious
under
with
naturally
stricted during
but with the spring thaw the Do¬
minion becomes a hive of indus¬
.
in British Columbia it has
theless
demand
their
level
its influence.
In
All indications point to a
period
,
give
summer
golds
continue
to
decline but the Western oils
likely to
way to renewed strengthen¬
ing of the exchange as soon as the
Canadian Securities t
of unprecedented Canadian devel¬
is
The
markets.
contributory factor in the decline. inclined
.
Considering
crease
in
the
further
output for defense
in¬
pur¬
poses, the total of goods and services to be produced and distrib¬
uted
new
„
>m-
„
seems likely to
be reaching '
highs, barring any reversal in
nH+TVW
Volume 173
The Commercial and Financial Chronicle
Number 4998
(1349)
business
and
consumer
Irksome controls
attitudes.
It is evident that the small spread in the
yield after taxes and
the large difference in maturity between the
longest, the shortest
adopted to divert
production to defense purposes or
check * inflationary
forces
Our
al¬
can
Reporter
be eased if they prove un¬
necessarily restrictive.
and the
Governments
on
rant
ways
What has been said here
be
interpreted
as
the seriousness of
marketing,
and
seriousness
of
It sometimes makes
government.
a
exaggerating the
problems
facing
difference where
one's
respon¬
sibilities
lie.
But your speaker
does recognize that the uncertain¬
ties
marketing
facing
lines
are
very
Relationships
maintain
an
in many
great.
established to
flow
even
of
goods
particular
will be disrupted. At a
time
stocks
of
products
almost
certain to be scarce later may be
overflowing the warehouses avail¬
able
a
and
be salable only
may
discount
from
previous
prices.
vanced)
at
(ad¬
particular
For
products, production and sales
may be curtailed for a consider¬
able
period.
For
all consumer
goods, shift in geographic distribu¬
tion of products due to shifts in
population and income will be of
some importance, although not so
much
so
most
every
in World War II.
as
and
;
bigger
checks
The government market is again
the
to
Federal Government:;;
in one of those in-between
Price
move¬
ments, although wider, are still not decisive, and are not likely to
be for
while yet.
a
policy such
It takes time for
major change in monetary
a
one
to be worked out and digested by the mar¬
ket and understood by
the various operators. The element of risk
violent price changes has
this
as
from the standpoint of larger and more
been tossed into the
Treasury market and this means
technique of contending with
or
veloped. The market has been
at times to
not
are
new way
a
less stable market must be de¬
the quiet side, which means vol¬
a
on
has not been very heavy, but it has been, however,
ume
keep things moving at
being built
desire to sell
a
but at the
up,
sufficient
rather sizable latent
conversion offer.
•
In
conclusion, I should like to
the hope, if I may, that in
making business decisions mar¬
express
keting executives and their
asso¬
ciates in industry and trade will
take full account of the problems
by government in carrying
In par¬
ticular, it seems to me important
that you make a special effort to
understand
termined
and
cooperate
efforts
to
de¬
in
fur¬
prevent
ther price advances and
keep the
keel. As citi¬
economy on an even
zens
in
all have
we
direct interest
a
preventing further declines in
the purchasing
insurance
power
1 i
p o
c
i
e s,
of savings,
retirement
funds and pensions, and in main¬
taining
Exchange Offer Success Indicated
which
lems
ion.
present great world
The market is awaiting the outcome of the offer by the Treas¬
to exchange the last two ineligibles for the nonmarketable, but
note convertible 2%s.
The books opened Monday, the 26th, and
The
that
more
is
done
on
thai
are
initial
the
turn-ins
have
been
more
effective will be the
organization of economic activity
'
-V
New
New
York
York
Curb
Exchange,
admit John J. Miles, :Jr,
nership
will
to part¬
March 31.
on
Allan H.
Hutton
&
Crary, partner in E. F.
Los
with
Co.
away
certain amount of sponsored
result in lower prices for many of the Treasury
there
are
no
not in there
real heroes in the
;
obligations because
market, when the Central Banks
of the New York Stock
will- admit Barbara
on
J.
Exchange,
Parsons to
—
Robert
level of stabiliza¬
There will always be the official interference, which will be
important enough to keep the market orderly. Because of the
large number of demand obligations that might get jittery if prices
continue to decline, the market will have the benefit of official
help, and this will establish the zone where quotations will bottom
out. This area or level is what the market and its various opera¬
tors
trying to find. Testing and probing will aid in this effort
going through, there has been
lack of this on the part of the interested parties in an endeavor
are
and from what the market has been
no
to find air
pockets.
:
,
To be sure, no one can
say
where the longer-term obligations
Nonetheless, some of the
operators in the Treasury market do not expect very much of
likely to find
best
decline from
an
area
of stability.
present prices.
Where the low quotations of the
recession
might be is also a matter of guesswork. Nevertheless,
opinion is being ventured that the 98V2-98 level for the longest
ineligibles should be the bottom, irrespective of what may come
the
It is evident that considerable
switching which is being done
the taps will be accelerated when the exchange offer is out
in
South
Street, the firm announced.
their
Clark
demand
year-end.
deposits
bil¬
viduals
the
Savings and time
businesses and indi¬
of
decreased
last
six
States
Dec.
of
the
year.
Government
declined
on
slightly during
months
to
30.
their
In
de^
lowest
contrast, in¬
Prac¬
terbank deposits more than recov¬
all
ered
of
increase
decline
recorded
in
the
first half of the year.
occurred after
the
the
Banks continued to add to their
Maple T. Harl
outbreak
capital accounts, but not propor¬
tionately to their growth in assets.
This operation would most likely be
more
vigorous if
by
an
record
a
—
Assets of the 13,446 insured com¬
mercial )3anks totaled $167 billion
at the end of 1950, compared with
$155 billion at the beginning and
middle of the year.
The growth
from
June
December
to
was
due
in part to normal seasonal factors
and in
part to accelerated business
activity.;..
increase
in
loans
ratios.
"In fact," Chairman Harl
said, "the present ratio of capital
accounts to assets other than cash
United
and
States
obligations
1928.
is
Banks
sponsible for most of the growth
Insured Mutual Savings Banks
in assets. Loans advanced over $7
—Total deposits of the 194 insured
billion to a total of $52 billion mutual
savings banks increased by
during the last six months of 1950. almost
$1
billion during
1950,
end.
Investments
real
ineligibles.
stricted
It is being pointed out that the closeness of re¬
the time when the commercial banks can buy
issues
a
to
factor to be considered and is not costing the buyer
There is also
a
shortening of maturity which
is not without its compensating features to certain purchasers of
these securities.
It should, however, be remembered that these
switches
are
not
being done in too sizable volume yet, but there
expectations it will reach much greater proportions, when the
new
2%s
longer end of the list
are
This
it is evident that the authorities
creation of
reserve
these balances
they
as
balances any
are
very
easier.
are
not going to make the
If the deposit banks want
loss in
a
rate, which is no approaching a yield that
desirable for notes,
not so long ago.
issues.
passing them
up
for
the
short
an
The
influence upon
This trend is being
obligations.
banks which have been interested in the longs
now
many cases
Money has been tight and the bill rate has
attractiveness of the short rate cannot but have
are
prevalent
to be expected be¬
was
going to have to take
has the yearly
considered
were
because not
for income
and
a
few
purposes,
intermediate-term
time,
same
in
insured
other
com¬
securities
$1 billion higher, with most
reaching $14 billion at the
Assets increased in compar¬
30.- Loans
$1
year-
estate
billion,
$16 billion
and
on
Dec.
discounts,
mostly
increased over
loans,
while investments
in
of the increase occurring in obli¬
obligations
gations
Government declined moderately.
of
divisions.
States and their sub¬
During the six months
the banks added almost $7 billion
to their cash and reserves, bring¬
Two
banks
of
the
with
United
deposits
States
of
$74
million, assets of $83 million and
loans of $48 million were added to
ing the total to $40 billion.
the
number
of
insured
mutual
Chairman Harl pointed out that
savings banks during the year.
the $52 billion of loans outstand¬ The ratio of
surplus and capital to
the
of 1950 far ex¬ total assets in all insured mutual
previous total. Com¬ savings banks increased slightly to
mercial and industrial loans, the
9.5% at the end of the year. largest single category of loans,
showed the greatest increase; they
at
ceeded
so
beginning to make their presence
felt in the shorter end of the market.
cause
the
ing
have been
"
.
v
re¬
able amount to
issues into the shorter maturities of
every
arise in the future."
was
ings of United States Government
obligations by nearly $4 billion.
the
since
make
to strengthen their capital
position in order to be prepared
for any contingencies which
may
eligible tap issues. It seems as though the earlier bank eligible
taps ar still attractive to many investors and this is bringing swops
last two restricted
lowest
effort
At
the
Government
the
should
mercial banks reduced their hold¬
from
Chairman
years.
increase in assets Harl emphasized that the
growth
$183 billion,,, Chair¬ in assets
accompanying this de¬
man Harl noted that most of the
cline in the capital ratio has been
additional assets came from the
primarily in loans rather than
$11
billion
expansion in
bank government
securities, and
in¬
loans, an increase of 22% during volves
greater
risks
than
the
the 12-month period.
1940-45 expansion in assets which
caused the previous low capital
Insured
Commercial
Banks
to
there should be further price declines in the shorter-nearer (bank)
manifested in the market at the present time,
33
in
tically
The
Switching Tempo to Increase
the longer maturities of Treasury
Corporation
was
year.
along.
Meyers, formerly with C. J. Devine
office,
$11
increase
matched
own
&
Co., has joined Stone & Webster
the
on
March 26. This
was
the
shot.
was
L.
of
deposits of businesses and individ¬
uals, which rose to $90 billion at
an¬
nounced
$153 billion at the
1950, compared with $142
fighting with its intensification of The ratio of total
capital accounts
industrial and business activity.
to total assets fell to 6.8%, the
The
growth in deposits was lowest in two
firmed
111.
In¬
poration,
totaled
of
billion at mid-year and $143 bil¬
the beginning. Nearly all
Cor¬
surance
and
lion at
of the Korean
The belief that the market must find its
in order to get them.
Wit*r Stone & Webster
of
Federal
Deposit
banks
end
production,
tion without too much help from Federal does not mean quotations
of government securities are going to fall out of bed by a long
in the
April 5.
CHICAGO,
are
taking them.
The indecision and uncertainty which
Street, New York City, members
Chicago
This could
is out of the way.
Jacquin, Stanley Admit
Securities
or
on
Jacquin, Stanley & Co., 44 Wall
partnership
a
exchange of the June and December 1967-72's into the
March 18.
1950,
the
headquarters
Angeles, passed
30,
the market until the semblance of bottom is appearing.
are
in
Dec.
level
anything additional.
.
on
posits
them is still
Allan H. Crary
all-time peak
accelerated
preceding
of the way.
City, members of the
speculative activity.
Deposits of insured commercial
help along the exchange which is now taking place. However, with
the conversion offer Out of the way, it is believed there will be
less inclination on the part of the monetary authorities to protect
among
Adriance-Finn Admit
tors,
savings
the end of the
i:
Adriance & Finn, 14 Wall Street,
shortly there¬
V
■
is reported that
in this period of partial mobiliza-
tion.
or
$168 billion
Maple T. Harl,
the
insured
a new
of
Chairman
all
mutual
support has appeared in the market from time to time in order to
a
and the
'
.
then
very
of
and
United
a
voluntary basis the less will have
to be done on a compulsory basis
deposits
lion, or 7%
higher than at
prob¬
orderly fash¬
Total
official
are
be met in
can
r
ration, reports,
banks reached
ury
economic situation in
an
shorter-
Maple T. Harl, Chairman of Federal Deposit Insurance Corpo¬
as of end of 1950 total deposits of all insured
commercial and mutual savings banks were
7% higher than at
same period of
previous year. Reveals 22% expansion in loans.
purchases, evidently to take advantage of the
The bank
commercial
faced
out the defense program.
a
High of $168 Billions
issues, especially the longer ones, are
still in a defensive mood and this makes for fairly wide and sharp
price changes in both directions. The short market, although in an
uncertain phase also, is getting a great deal of attention from the
large deposit banks.
It
Inflationary Policies
or
term 2V2%?
of switches.
The exchangeable 2V2S have been in the
spotlight, mainly because of their stableness marketwise and some
after.
>
by then, and, if so, what will be offered—a 2%%
medium
lating to international affairs.
for Support of Anti-
there.
Deposits of Insured Banks Reach All-Time
what will .happen to the market will come
Need
as a buying opportunity.
Although it is still quite a long
off, the "June financing" is coming in for discussion here and
The big concern seems to
be, will the market be all right
way
short.
tinuation of present conditions re-,
^
present
fair clip. Positions of traders
time there is very little
limits of the assumptions made in
this discussion regarding the con¬
are many un¬
risks outside the
and
Despite rather wide price movements, which are nearly al¬
the characteristics of a defensive
market, the partials are not
without considerable attraction to certain
deposit bank investors.
Higher taxes and greater stability in the market will
eventually
have a favorable influence
upon the tax-sheltered obligations ac¬
cording to those that are taking them on now. They look upon the
ways
an outright way has been at best rather spotty,
although there have been not a few purchases made through the
indications
Moreover, there
maturities at
same
sizable,
which bodes well for a very successful reception for the new
higher coupon Treasury obligation. The closing of the books in
about two weeks or so will also be an important development in
the government market, because it is felt that the real test as to
certainties
and the middle
longs. Nevertheless, this has not brought about
the long bank issues.
,,
Buying in
Al¬
enterprise must be
prepared to fill out and send more
forms
liquidation of
uncertain periods that plague it every now and then.
-
intermediate-term taxable eligibles, is too narrow to war¬
acquisition of the most distant obligations. This has
the
resulted in purchases of the shorts
the expense of the
By JOHN T. CHIPPENDALE, JR.
might
underestimating
problems facing
25
end
any
advanced $5 billion,
ing the six months to
billion.
$13 billion
greater.
loans
real
about $1
were
Consumer
increased
sharply to
lion.
30% dur¬
total of $22
or
a
Club Dinner
a
estate
and
in
over
the
more
$6 bil¬
volume
consumer
of
instal¬
these
fields,»while
the
sharp
Meeting
BOSTON, Mass.—The next din¬
instalment
somewhat
total of
Changes
billion
ment loans extended recent trends
in
Boston Investment
Real estate loans totaling
ner
meeting of the Boston Invest---
ment
at
p.m.
H.
Club
will
be
held
April 9
the Boston Yacht Club at 5:30
The speaker will be Harold
Young, well-known writer and
partner in charge of utilities
fo^
advance in commercial and indus¬
Eastman, Dillon & Co., New York
trial loans reflected seasonal fac-
City.
26
(1350)
The Commercial and Financial
Chronicle
Continued from page 9
Our fellows in
careful.
so
have
gas
each
water.
get people to buy
Dishwashers
5,000; last
in
a
sold
1937
There are two
or three new people
coming into this field. ' Everyone
who
owns
washer
is
automatic
an
the
biggest
"dish¬
material
in
booster
there
1,600,000
were
biggest producers of electr ic
washing machines; that is, Frigidaire, is now producing the entire
machine, inside and outside, of
porcelain enamel.
Other produc¬
have the tub of porcelain and
the outside painted.
This organic
ers
He
years.
its appliances.
and
man
Tuttle,
Electric
is
works
was
division,
a
very,
quite
for
GuCSS Who?
a
15
If You Can't Turn
to
Page 29
able
very
inventor.
an
THEN and
are very
good plan¬
of Hotpoint, which is
General
in
ours
of
either
case.
Appliances
to $20 million.
quite
in
'
He
You
also
have
They expect to be
factor
a
in
Hands
heating division,
another
doing
Stronger
machines sold, and last
there were 4,345,000 sold. One
of the
like
Manufacture
washing
year
advertising
Chicago
are very
whether
the world for them.
In-1937,
Thursday, March 29, 1951
.
Well/as far as. ."ottf company, is said
they thought that in a couple
concerned, it makes no difference of
years
they could get the $6
a
customer buys gas* or
million up to about $8 million, and
electric; they use our material or in
five years they could get it up
they sold 230,000.
year,
you
manager
and electricity,
its head off to
good
electrical dishwasher is really hot
of
essence
They
This man,
ners.
the
.
something to shoot for. We picked
out $50 million for Ferro by 1955.
because
.
strong
factor in that these appliances are
getting into stronger hands. You
have Norge and Kelvinator and
Westinghouse and Frigidaire and
little
very
much up
grown so
I
mentioned
industrial
which
are
We
now.
just haven't had
exide
this
on
are
have
there that
we
room.
to
division.
you
We
color
our
are
adding
General
Electric, and all down the about 50% to that division. In the
including, of course,
the plant that makes the saggers that
Sears group. They are people who hold the pottery, we are
adding
line,
understand promotion, who have another continuous kiln,
and I
plenty of money
to
advertise, think we are adding about 50%
plenty of money for research and capacity. Those divisions ought to
paint to customers of ours who
development, and so you are going do better than they did last year
use
porcelain on the inside and to have
a
continuous, big adver¬ because they are not affected by
paint on the outside, so we sell
tising warfare. Admiral and Phil- any steel shortage.
them
both.
Somebody said, "If co and the whole crowd
Without listing them in the or¬
are
in
you
can't beat them,
you
join there with appliances. It isn't like der of importance, I want to
give
them," and that is the general idea the old
days when a fellow had a you some odds and ends of facts.
of our
policy of finishes.
We have in our
little stove
paint division that I spoke about
little
a
In
while
1934,
ranges
123,000
It's
lot
a
of
electrical
sold
were
1,800,000.
that
sells
ago
and
last
year,
really booming in
industry.
•
,
The number of wired homes has
increased
at
a
very
substantial
rate in recent
years, from 24,000,000 to 39,000,000 at
present, as
compared
to
1940.
course, increases the
all house appliances.
This,
of
market
for
more
appliances
I
of the
would
sale
mean
and
our
of
com¬
helps in 60%
say,
going to
are
do a bigger job of
prefabricated
houses. We sold a
good bit of the
It
is
for
the
fine
a
Lustron
house.
house.
The
survey
made
by Booz, Allen and Hamil¬
ton, where they talked to 10% of
the
people
who
lived
in
the
houses, showed
that
every single
one of them
liked it. It is a good
house.
It is a house that
won't
burn;
it
is
practically
house
house
a
no
that
that
needs
insurance; it
don't
you
is
have
a
to
paint.
probably know
United
States
is
a
prefabricated
they make it
there
is
that
think
minute
of
nobody
the
the
it
is
but
believes
Corporation
is
to make wooden
opinion, and
my
reasonable
there
sheets, why,
house,
wood,
who
Steel
going to continue
houses, and it is
1
that
Steel
Corporation
the Gunnison
housing outfit,
which
and
is
that
any
the
surplus
you will see the Steel
Corporation
putting more and
sheets on that Gun¬
nison house of theirs.
more enamel
Last year's
over
36%
housing volume
1,400,000 units is
over
over
of
than
more
the year before and
49%
1925, the peak
previous
building
estimated that
fqr
a
the
of
year
cycle.
It
is
long time to
come, they will average about
million new houses a
year.
If
look
a
you
at
any community and see
the condition and the
age of the
houses, you will agree, I
believe,
that the minute
there is a real
bargain in homes, such
as
prefabricated
lot
of
the
house will
bring,
people
will
want
a
new
homes.
piping natural
gas
into this area, into
Boston, up the
West Coast; that
opens up a ter¬
rifically big demand for new
gas
ranges
for gas
and, to a certain
extent,
refrigerators. On the other
hand, -the electrical power com¬
well
today
are
very
are
These fel¬
aggressive.
One of our biggest customers
has given us an order for six con¬
tinuous furnaces to be built as
fast
as
we
can
build them.
Well, he
already had six, so he is doubling
up. That is a million-dollar order.
It is
of the
one
are
outstanding
market
not
are
very powerful and
very
financed;
and they are mak¬
ing a most aggressive sales cam¬
paign to sell electrical
appliances,
They
and
six
going to
be
bigger.
We
have
an
order for
order
from
and
an
Philco for
one.
As a
matter of fact, I mentioned
those
two engineering
companies.
We
have the biggest
backlog of orders
today—we have almost $5 million
worth of
engineering orders today
to
be put in as fast as we
can.
I
told you that last
year one of our
divisions did a business of one
million dollars and the
other divi¬
did
a
million;
so
it
is
just amazing to me what
people
think about the future.
These peo¬
sion
ple
are
all
going to make
they
some
are
not
bag,
little
a
It is just
which we
in
put a variety of very inexpensive
novelties—tops, tricks, etc. It is
a thing.
We send out 5,500
them, and we get the nicest let¬
quite
of
ters
from
all
the
kinds
of
finest
kids
sick in the
are
body
has
and
if
any¬
great
a
let
me
good-will
more
or
less
grab in the grab bag and pick out
these facts, but they won't be in
the order of their importance.
The first
is that at
one
recent
a
we
expect quite
industry and
Now,
will
be
which
to
to
as
earnings, which
last
for
That
year.
the
last
six
I
ana
am
it,
quite
lot of glass.
I
no
dif¬
assured,
am
We make
sure.
We know
making glass.
We have known
lot about fibre
glass, and
great admiration for it.
ably
know
of
things that
are
the
a
lot about
a
a
have
we
You prob¬
multitude
of
made of it.
that
we
all
the
difficult
not
so
fact,
We
did
we
As
a
of the
some
Napalm.
on
working
are
much
our re¬
helpful.
on
couple of
a
bomb loading contracts, and if
you
are
familiar with war
months and
after a
10%
stock
dividend
November.
Roughly, if we
was
research work
after
was
work,
in
will
had;
know
and
that
outside
of
airplanes,- the amount
you
tanks
of sub¬
not had the EFT for the six months
and if we had not
stantial
10%
small, until just currently. I
haven't any idea just how much
put
stock
dividend,
have made
a
little
would
we
$6
over
the
out
share.
a
What Is Enamel?
con¬
Many
we are a paint com¬
Many people think we make-
people think
pany.
pots
and
ask
if
1
pans.
telephone
have
from
me
had
New
men
York
to
use
they couldn't borrow
We don't
steel.
We
steel.
use
are
chemical^ business,
electrical
We
are
we
business
things the best I
could, it
I
took
brought
going to change the
name
lion
who
how
giving
enough
us a name that is broad
for
thing
any
might be ambitious
future.
I
logically,
don't
how
that
we
know,
psycho¬
difference
that will make but I do know that
most
people just don't know
various
things
the
make, and a
many of them think Ferro
paint company.
Reaching again into the grab
we
good
is
are
a
could,
to
26.
fellows
have
for
as
and
Then
about
Napalm
I
the
for
That
and
is
a
There isn't anybody
guess.
can
those.
guess
on
work
war
ex¬
thing like that, and nobody knows
fast that will be stopped in
case
there is any
indication of
peace.
to make in the
much
off, to be
I
cept somebody like Cadillac who
a big tank
program or some¬
eliminating
"Enamel"
down
our
down
sheer
has
name
10%
as
thermit, and I put another $4 mil¬
company, if our stockholders
approve,
to
Ferro
Corporation,
the
it
to
we
of the
and
another
conservative
talked
in the
to $29 million and
came
orders
are
been
figured, for that computation
some
substantially.
has
of $30 million for 1951 after I
had
added up all the
We sup¬
getting into the
let
will do.
we
I
A great many
people are
fused about what enamel is.
orders
war
very
.
ply the glass—frit—to people who
There will be
take
work
matter of
already been mailed
stockholders; they were
fibre glass.
about
search
published next week and
our
EFT
our
have
$4.81
to
was
things because there is
competition for them, and
steel.
ficulties
icy
lot for the fu¬
a
ture frdm it.
meeting of the Board, we decided
to negotiate for a license to make
From
spending that kind of money for
fibre glass are made molded chairs
new
equipment unless they feel
and sofas, card
they are going to be able to sell
tables, boats—they
tell me these
the products.
dinghies are just
>
^
crackerjacks
—
aircraft antenna
I mentioned a
little while ago
housing, bread I boxes, cafeteria
the Ferro Chemical
Co. that ctid
trays, aircraft radar housing, hel¬
$1,600,000 last year. It makes a
met liners, automatic dishwasher
good margin of profit.
We are
lids—well, there are a couple of
adding to that plant currently.
pages of them.
Then, the outfit that I spoke
The end of it is
to
the home appliance
get a telegram
inexpensive item,
an
been
So
they
or
(B)
we
For
builder.
spring
night,
misses,
about it.
it
and
People
Christmast morning
on
Christmas
or
people
institutions.
them for the time when the
have them
con¬
tinuous additional furnaces
unless
they feel the business is
grab bag.
a
cheesecloth
a
our cus¬
Christmastime
at
bag called
save
research
building
company an amus¬
ones.
just smart people.
On
foreign
our
subsidiaries,
I
felt the
same way
about, them as
I do about the household
appliance
business.
We are very strong in
foreign ventures and we are
our
doing very well and
business
in
lot.
a
charge
Our
those
of
like
we
the
vice-president
companies
wrote me a little while
ago and
"going into," but bag, many people have asked us
said, "On a total dollar investment
we
are
negotiating for it and I about war work. In World War
of
$612,000,; Ferro's equity in its
Frigidaire cur¬ see no reason why we shouldn't II, we were very important
pro¬
rently is paying us a
foreign subsidiaries as of Sept. 30,
royalty on go into it—is not the textile end ducers of incendiary
materials,
the top
heating unit. They pay us of the
1950,
is
worth
approximately
business, which we know and our sales rose to the rate of
about $250,000 in three
present
exchange
years for nothing
about, but the molded $18 million a year. Our big growth $2,700,000 / at
the use of this
rates." Since the time we began
idea. I went to see plastic, with
reinforcing of these or the company came during the
a
president of one of the
operating in foreign countries, we
We have one friend war years.
big com¬ cut fibres.
Currently, we are mak¬
panies. I was asked
by one of our of ours, the Apex people in Cleve¬ ing Napalm and thermit, with a have taken out only about a mil¬
salesmen to go down to
lion
dollars, and that gives us
see him.
land, who make washing machines few other less important items.
He wasn't
about 146% return on our invest¬
using our unit. I had for Montgomery Ward, who have Both of those are
incendiaries. As
met him
before.
He said, "Mr made a tub of fibre
glass for about to Napalm, according to Hugh ment, but the reason for drawing
you about, Tuttle &
Kift, who
make the switches and
top heating
units for ranges.
Weaver, explain
this unit."
"Actually, I can't, because
an
I
said,
I'm not
electrician
or
a
chemist.
I
fool you.
But I'll tell
you
that Frigidaire with
all their en¬
won't
gineers and General Motors
with
all
their
engineers
have
just
agreed
to
pay
us
in
three
$250,000 for that idea,
Now, we have a lot of outside
people working for Ferro.
You
take the natural
gas fellows in
Texas who are
panies
living out of it.
tomers
kind of products and
You
owns
ing custom of sending to
Admiral for another
one,
future, they
material
company and not a
lot of money and just had
understand
housing starts.
In the
lows
they
housing starts
pany,
nice
They
Effects of More Houses
All
whole
a
(A)
so
years
ness
on
gave us their busi¬
the strength of
Frigidaire's
engineering preference.
We
18
months
not
but
it.
is
all
say
and
going
like
to
it.
They
switch
to
are
that,
there will be people who
use
In this particular
case, the tub
so
intricate
impossible
to
Now,
don't
we
that
it
expect
much money out of this
As
a
matter
is
almost
stamp it and weld it.
it must ture, if any, for two
be a good idea."
He said, "I think
that's all I have to
know about the
thing." And he
going into—I
of
or
fact,
to
make
new ven¬
three years.
it has been
my experience with all these com¬
panies that we started that it takes
from
three
to
five
years
before
get out all the "bugs." There
always something wrong that
you
is
down
Bailey, President of the
Press, who just made a
speech
which I read in the
paper in which
he said that Napalm has become
very
in
important in the current
Korea.
ican
Air
He
for
compensate
perior
has
the
numbers
by
enemy's
the use
to
su¬
of
Napalm, which can burn Chinese
troops by the acre and asphyxiate
many
who
are
of the flames.
outside the
As
a
range
killer, Napalm
should be rated next to the atom
bomb."
-
have the
outstanding elec¬
trical unit on the
market. We did you don't know about in advance
Now, I get no great pleasure out
about seven millions
last year in and, just as sure as heck, it takes of producing a vicious thing like
that division.
I had asked
yoq three to five years to start that. In the last
war, we had eight
pre¬
viously all the divisions to let me jmaking money. But for the long men killed in one accident and
know
what
run,
there
is
just no limit to the three men killed in another. But
they thought they
fibre glass
could do in the next
five years.
opportunity because it I mention it because it is impor¬
is growing to beat the
I like to
band, and tant and if we have to have wars,
have..some kind of an
we are in a
good position to cash why, Ferro is
prepared to make
objective, even if you don't hit it; in on it, A lot of it will
go into a lot of devilish devices.- Our pol,
:
'''-Cf;
Jr,v,y •i*
the
r -/•:*<
-sr*;•
back
money
been
we
been-able
is
that
have
we
grown so fast that we had to
war
said, "The Amer¬
Force
little
so
United
in
the
in.
plow
It has only
last
four years that
have really started to take out
any money.
In
1947,
took
w;e
out
$150,000,
delivered to us;, in 1948, there was
$170,000; in 1949, it
was
and this past year,
was
it
$300,000;
$470;000.
That was the best year.
Those
earnings are not subject to excess
profits taxes^ but -are subject to
our
normal
credit
us
taxes.
they
except
with the taxes
have
we
already paid in the foreign coun¬
tries, so it costs us approximately
10 to 15% only for dividends from
foreign subsidiaries. '
^
'
.
People
tine.
pany
large
other
worry
We have
ahout the Argen¬
a
nice little
down there, with not
investment,:
day-
we
a
com¬
very
but justthe
got $123,00G/from
Volume 173
them
in
Number 4998
of
payment
.
.
The Commercial and Financial Chronicle
.
bills,
past
for
You remember, the Argentine got
big loan from U. S. A. and paid
a
substantially
up
ican
their
business.
instance,
centage
sales,
reai
We make
profit
of
and
to
our
service
tomers.
pian,
;frum
we
the
.our
own
ovef there,. and
money
again.
over
It is going to be even
if you take the
appliance business in for¬
better
because,
home
eign countries, of
its
infancy
here, but they
catching
up
tO dO.
\
In
,
or
got our money back over and
we
in
some
invested
We
~
our
that
so
the
we
can
consolidate
and
statement,
own
their
so
sales
were
try
to
tell
asked
me
I
smelters.
this
how
you
it
a
but it used
ago,
year
to
valuable
hydroponic
culture,
growing recognition
portance
aspects
follow.
One
of
oil
of
developed electric smelters which
are
quite superior to anything
"This
that
research
books
furnaces and
for
kilns and
forth.
so
In January, we received $90,000
in cash from foreign plants.
I am
of
often asked the
an
question, "Do you
getting out your
money?" and the answer, broadly
The foreign
countries recognize the service we
speaking,
is
No.
them
in
that it is not difficult
to take 50% of your
American
cne
of
Dutch
Our
dollars.
is
company
profits out in
good com¬
our
Our Holland
company
exports about 88% of its products,
so
it brings in exchange for the
Dutch Government, and we have
panies.
favorable position.
They
are getting some real hard money,
Swiss money and a lot of sterling,
a
very
and the Dutch Government looks
with
great deal of favor on us
a
helps
and
us
on
import licenses
that
machines
is
there
business.
quite a good patent posi¬
it, and it is expensive, and
on
lot
a
volved.
factor
this
into
get
of
know-how
I mention this
because
as
in¬
safety
the business is
as a
successful, there are always
people who think they would like
to get into it.
V.
;
I mentioned the figures for Jan¬
more
tioned
chine
here
Now,
are
just
have
We
instance,
block
Our
com¬
The
spent a half-million dollars
last
year^ on
research.
In our
Cleveland
plant,
for every
88
over
out¬
shares
for
feet of production factory
space, we devote 11 square feet to
laboratory
and
research work;
where we have 71 men employed
the
square
productive
manufacturing —
warehouse people, but
fellows who are actually manu¬
in
bit
assets
current
liabilities
a
over
of
current.;
We have on hand cash and gov¬
respect
over
to
$3,000,000.
our
foreign
that is, not
plants,
facturing—in the factory, we have
29 men in the laboratory and re¬
England, France, Holland, Aus¬
tralia, Argentina and Brazil.
We
own all of those companies a 100%
search work.
a
French
company.
Now, everybody is interested
There,
company's EPT base.
interest in the company
with
ure
us
is
approximately $3.75
If
share.
per
-
we
make the same
i
.
last,
share earnings after
profit this year that we did
year, our per
EPT would be about
One
ings
the
of
is
there
$4.31
a
share.
things that helps us
these foreign
that
earn¬
dividends are not subject
or
to EPT.
*'
the
except
in
The fig¬
have them in Canada,
we
have
we
just
a
nominal
and they
much per
us a- royalty, so
pound, and it is a good deal.
pay
time
franc
we
went
in
there,
At
the
uncertain and we
just thought we would skip that
was
very
We
one.
are
now
completing
a
which will be
finished in May.
It will be a very
modern building.
We are putting
in
plant
Mexico
and
Never has the
In
France,
seethes
cauldron
as
the
and
with
uncertainty; Russia
hangs, as usual, like a cloud, dark
and
silent upon the horizon of
Europe; while all the energies,
British
and
Empire
yet
are
sorely,
and
influences
and
sources
in
are
the
tried,
tried
more
with
Indian
deadly
of
sorely
be
to
coping
re¬
the
vast
insurrection
and with its disturbed relations in
China.
Of
troubles
own
our
the United States
no
man
in
can
see
the end."
As
part
you
the
of
able to
down
year,
pick it
were
is
but we were
later. Some of
here when we gave a
demonstration
which
up
in the early
of
enamel
our
on
Mirowall,
very
light-
steel.
We had a roll of it
here one day, aiid we unrolled it
gauge
with
We
in Japan that
will be almost entirely run with
Japanese money.
If you read the
Japanese interests.
some
started
a
company
He
he
would
say,
but—illegitamus
know,
carborundum."
that
And
non
is
in¬
deed the lesson that the
"Harper's"
item, reread today, teaches me—
illegitamus
no n
carborundum.
for
Translated
the bastards
and also for
told, "Don't let
you,
it means, I
me,
am
down."
have to
cope with.
We get too close to a
lot of our problems.
That
is
wear
the
you
thing
we
Then, as another fellow told
somebody has said that every
me,
and
man
pat
every
Some
it
need
others
in
once
higher
it
need
needs a
while.
company
the back
on
a
while
up
down.
lower
I
hope you will agree with me that
Ferro is entitled to one higher up.
it
been
able
is
inside.
to
tomer called
he
enameled
was
see
white
haven't
I
it, but the
enthusiastic about it.
very
enthusiastic.
You
in
can
first place,
side
the white
radiates
cooler
Most
ball
heat
roof.
the white
much
what
see
that
factory building.
a
In
on
on
the
would
In the
the out¬
It is a
away.
next
place,
the inside gives you
capacity.
of the reflectors you see in a
park are made with porcelighting
more
lain, which is a standard material
for reflecting light and is used
with electricity in almost all kinds
of lamps.
You know the ones I
mean—these big flare lights that
-
you
see
in
a
ball park.
They all
have porcelain background
I
don't
in
used
ample.
In
cus-
the other day and
me
why it couldn't be
candy factories, for ex¬
This
first
roof
is
at
see
Timken, and the steel people have
looked at it.
I would say it could
the
of
course
address
an
at
They
and
and
can
they
tear
can
make
down
a
company
check all the figures
up
their minds about
it, but I don't know that any of
them ever built up what they
nies
not
are
going
.the Eastern Mortgage Conference mortgage loans
of the Mortgage Bankers Associa-?
oi the Mortgage Bankers Associa-? investment.
tion of America,
March
on
26,
in New York City
W.
Donald
Camp¬
bell, Treasurer of the State Mu¬
tual Life Assurance Company of
Worcester,
expressed
Mass.,
the
opinion that in view of the recent
most
as
again
may
government
bonds
life insur¬
turn
rates,
companies
ance
to
interest
in
rise
corporation
and
desirable
invest¬
ments.
the
consider
us
...
.
overall
...
.
company,
"Our
remarked:
Mr.
own
Campbell
net
return
on
mortgages underwritten in 1950
is
on
a
par
securities
year.
There
number
with the net return
purchased- in that
are
of
in
Chicago
have
case
with
Mr.
January,
the Northwestern
The
action
of
the
Mu¬
U.
S.
is true that
mortgage rates ultimately follow
the
mortgages.
trend
of
though
the
percentage
of
mort¬
has
increased greatly during the
past five years and in view of the
action of March 3, a large part of
their
will
government
be
now
and
holdings
permanently
available
not
into
conversion
bond
more
overall
result
here
that
for
The
mortgages.
is
it
as
the
concerns
cost
of
us
manage¬
of mortgage portfolios and
facility of that management
ment
the
is
due
life
for close
attention
by the
insurance companies."
Eastman, Billon Open
Branch in Dallas
r
Dil¬
New
York Stock Exchange, have opened
DALLAS,
lon
It
bond
rates
and
&
Co.,
branch
a
Akard
insurance
Tex.—Eastman,
members of the
office
Street.
partner
the
in
the
109
North
Rufus
Brent,
at
W.
will
firm,
direct
office.
new
Investors Trust of Texas
DALLAS, Tex.—Investors Trust
investment of available funds than'
are
The
to assets of life companies
had
Howard Tobin stated this was the
tual.
abandon
medium of
indications that a
companies
similar experience. At your Clinic
in
to
a
.
investment
position of the hfe insurance
of
bonds.
gages
invested,
"Let
.
as
"But what is brought out force¬
fully is that mortgage loans have
a
strong competitor in corporate
of
Texas,
Inc.,
has been formed
with offices in the Mercantile
curities
Building,
the firm.
anxious to get Amer-
to
enough
we
but I
I
brave
be
had all those troubles;
don't know."
He says, "Yes,
"Yes,
mortgages, the insurance compa-
very
is
pretty good and I hope
haven't heard this, either—
questioned whether somebody
necessary for an ideal investment,
being
yesterday
he
It
said, in ending his article—
morning, there was quite an in- 'think would be an ideal company,
teresting story about the Japanese I am wondering if such a list,
Journal"
article?
ahead.
investment
Street
this
as
doubt when
opinion that there is progress
my
companies
may temper current investments
by
selecting . more
bonds than
"Wall
future,
to
Company of Worcester, Mass., tells Eastern Mortgage
Conference, with rise in interest rates, bonds may be more
profitable to hold than mortgages.
Instead of its being gal-
March,
were
the
gloomy
Donald W. Campbell, Treasurer of State Mutual Life Assur¬
We declared a 40-cent
people
lies
ance
feet
dividend up all our own money. The rates be used in almost any kind of
Treasury, announced on March 3,
payable in March, on on borrowed money down there factory that is apt to be dirty. has started an increase in the rethe 22nd, I think, and another one are very excessive.
The peso has You take a hose to clean it. In a turn from corporate securities. At
payable in June. In 1947, we paid been quite strong.
I think the foundry, for instance, you could present writing (March 15) it is
$1.30;
in
1948, . $1.40; in
1949, government is stable.
Westing- hose it down in no time.
indicated that, the adjustment in
$1.45, and so far we have de¬ house and a lot of American com¬
Now, I have talked to a good lower grade bonds may settle at
clared 80 cents this year.
panies have gone down there and many analyst friends, investment a yield of
to V2% higher than
built plants around Mexico City,
friends, over a period of years, prior to March 3. For the im¬
Now, 1949 was not a very good
and that is where our plant is.
mediate
and
I
don't
know
that
future,
bonds may
be
any
of
them
year.
We had that inventory
We have made a deal this year ever set up an ideal company. looked upon with more favor for
depression. A lot of the appliance
in
in
I wonder,
still more
mean,
us
Sees Increase in Bond Investments
a
think that is 3x3
of corrugated
I
square
outside 1 and
do
is|$15.68.
ernment bonds of
or*
little
The value per share
1.96-to-l.
white
He said the Steel Corporation had
Our ratio is been there to see it and they were
is
liabilities
$7,000,000.
over
With
roofage.
9
consolidated
of current assets
excess
or
time.
matter of interest, one of our cus¬
netwroofing.
approximately $11,000,- vanized,
current
say, green on
forever with the paint job.
a
that 000.
We have a book value per share,
these thoughts are not in order of
importance—is a very important on a consolidated basis, of $24.
pany
this
enamel
can
sides;
has
grave
incalculable
so
of
something else on
the
inside.
There again you would be through
Research—and I say again
thing to any company.
you
both
on
the outside and brown
or
of
cement
ahead
seemed
paper,
much
so
seemed
this
tomers sold Timken 3,000 squares
459,296
'a
number of
buildings, houses and so forth that
have gone up. Jh a basement, for
standing.
We1, have
the
seen
again, does this
tnat
his
many
Russia
again,
Europe, and since we seem to be
back at the beginning of the cycle
progress
So
this
read
Once
wrote
haven't all heard it. The
been
future
is
cycle.
fellow
that, and don't know
deep apprehension.
It is
what they call "surface glazing."
It will open up a big field.
You
have
a
bangs, as usual, like a cloud, dark
and
silent upon the horizon of
in
said,
there
will
It
in
written,
was
to be going clear around
in
worried about this and
who
men
glazing cement blocks.
gone through the pilot
practical.
seem
read
in
bubbles
be
we
bewildered world.
article
have
"It is a gloomy mo¬
history.
Not for many
^ears, not in the lifetime of most
difficult thing to do.
a
and
1857,
are
today, with a
humble country—
ana
that
you
article
said,
think
I
Weekly."
you
ment
fundamental
we
Since
hope
at
and
10,
hope and promise of succor to
trouoled
a
and this is
ma¬
stage
'Harper's
few nasty depres¬
a
we
yet
going to happen. I think
this story is pretty good, and I
political
has
I
and
panics,
powerful
what is
workers
our
you
article
worried about
new
ultimately
additional facts:
few
in
potential
is the method and
of*
have
we
them
to
which
an
are
idea
for
plant
and. I men¬
stabilizers
for
the
the
plastics.
qualifications
—
people
this
He
entirely
an
We
would qualify.
"Harper's
same
make
thought.
of
them.
meet
attention
we
new
on
products
February,
and
uary
we
will
regular business
result
a
Another
quite
to
worth
.for raw material.
other
is
will
Now, here is something, in clos¬
ing—and you can asked me any
in
in soil treatment."
outfit
tion
I would say
one
these
ber of
sions—nere
company, you will
im¬
the
10,
very bad then, and
looked very bad at
in history.
And yet,
have
other times
tne
the
research
our
this
me
This
There is
But
gave
attached to it, it is quite revo¬
lutionary, so much so that it is
going to be difficult for any small
bit.
little
a
plant;
plant, and
in Cleveland.
we
Different
differ
We have two
Nashville
our
have
we
Canadian
some
countries
have
do
in
our
experimental
With
now
had before.
rendering.
They
certain restrictions.
are
and
gas,
we
one
trouble
have
and
of
sure
think
March, and
to
used
our
be
given
sales campaign
a
You
growing
a
the
announced
Oct.
of
Oct.
and,
and
Practically
equipment is
They had
a million dollars' worth
engineering orders on their
be
.mucn.
in
was
they
soil
The technical
journals in
planning
are
we
to
are
making frit.
and then with
all
questions
technical
very
changed
article
things looked
check all those
you
our
Ferro
mind
good product.
have
to
think, if
the very encouraging results
have obtained, we think this
a
things
Weekly"
di¬
products
You want to
plant and animal tissue, and with
be
time,
It
small in many ways compared
with other big companies, but on
field
elements
tracer
of
on
tnat
to
With
of
written
of
are
product to
both
for
of
then with gas
"I
re¬
our
have
to
was
Since
not
This
good research policy.
new
and
the
shown
is used in
and
of
out
come
Greenhouse
of
like
market.
growing
promising
like
adequate financing.
on
would
find
as
in
an
insist
and it is the most
which the glass was melted.
We used to do tnat first with coal
$456,000 for
be like
been
plant root in controlled quantities*
to
to
the
to
released
open-hearth furnace
Our
,The profits were $47,000, u]3 16%.
electric
our
strated
quar¬
:
have
people
is made, because we demon¬
giass
the first 1951 quarter, or up 24%.
.
window.
a
won't
what
*
You clean it just as you
about
for
know
you
hallways
or
this, it would be just
like
Some
get fig¬
them
ter ends the end of January.
Canadian
lately,
means.For
would
of
be
supply
content.
desirable
items with
be
If you have paid a
has
nave
27
while we have been going through
maybe, diversification geographi- some mighty dilficuu times since
cally.
You would certainly want, that article was written—we have
a
growth record.
You
would gone tnrougn four wars, a num¬
containing tracer elements which
you
the for¬
end
fertilizer.
search.
perfect.
at
beau¬
a
product
new
labor
versification
are
It is frit used as
It is an insoluble frit,
trials have
rooms
companies
in
product
It is
and, of course, once
put it in, you never have any
a
uni¬
is
would
and
low
be
that
18o(.
I think they would
plentiful
a
a
would
more
we
research
tiful; finish
want
Canada, for the first quarter
ures
strip
the joint.
three
or
implies.
will
over
have
progressing for some years, called
"fritilizer."
It is just what its
kitchen, we just buttjointed it. Sometimes they put an
aluminum strip or stainless-steel
more
eign
we
my
we
in
that
which
on
on
materials
raw
things
have
We
In
and
books
I have
have it in
we
two
are
interesting
name
are more
our
There
very
it doing.
like this,
have with
we
product
a
versally used.
a
That
not, first, have a company
experienced
management,
witn
and
French friends.
our
For
kind of
same
deal with them that
they
It is a wall covering without many lines in it.
I think that
every 24 inches there is a joint.
with what
••
close
and
laboratories
new
that
—we
October
kitchen and
painter
with
compared
as
insist
saw
They have
room
a
maintenance.
it is just
course
going to have the
We li¬
built.
any
government
government.
any
got
machine.
the previous year.
in
would
the
on
just
than doubled their sales last
it in my
rendering a
foreign cus-
never
statement
was
with
would be simply beautiful.
foreign
our
I
It
in the left-hand column.
Well, that is just what they
are getting from Ferro.
We are
the
use
enthusiastic.
year over
lalking about tne U. S.
Point IV
money
on
are
page,
to
annual
very
more
bigger per¬
a
we
are
know-how.
first
invention.
our
impatient for imme¬
you shouldn't go
into this foreign business, but if
you are patient, it is a very good
If you are
diate dividends,
>
them
is
ican
in Baltimore.
down
cense
It
investor friends,
is done by a com-
our
business
pany
their Amer¬
on
bills.
of
some
That
(1351)
to
business.
;c
Rqss Kennedy
a
conduct
Se¬
an
.William
nHnrinal
sap
p
nf
28
(1352)
The Commercial and Financial Chronicle
Force Finletter's office.
dertaking this
of
News About Banks
ent
Bankeks
and
He
regular meeting of the
directors
.
of
National
The
Bank of New York held
27
.
it
shareholders
.
.
■
a
to
to
in¬
of
the
per
pro
rata
founders
offered at
the basis of one
An
the
of
of the
Colonial Trust
Com¬
has been
and
pany
one
of
man
new
the
increase
Citizens
concluded
bankers
expected
are
be
investment
with
the
for
to
sale
of
any
The
The
New
subscribed shares at not less than
23
that
the
to
the
subscription price. The pro¬
posed sale of stock will add $40,000,000 to the capital funds of the
bank. The capital stock will be
increased
from
$124,000,000
York
approval has
Chemical
a
tificate
of
increase
of
a
cer¬
capital
400,000. The stock is in shares of
$10 each.
The enlargement of the
to
$144,000,000 and the surplus from
$136,000,000 to $156,000,000. With
undivided
profits
of
approxi¬
mately $59,000,000, total capital
Bank and Trust Company of New
funds will be
York with the
bank's capital occurs following the
approximately $359,-
include
of
This total does not
either
the
capital
funds
City Bank Farmers Trust Com¬
our
peared in
page 737.
payment
number
of
dividend
the increased
on
shares
of
the
record
May 8, and the rights will
terminate
it
exercised
not
on
or
before June 4.
$
si:
Announcement
March
27
1 0
by William
J.
on
Dwyer,
President of The Franklin Society
for
21
program was being advanced to
convert the 63-year savings in¬
stitution from a State to Federal
Charter. Preliminary approval of
the
conversion
granted
by
offer
plan
has
been
Federal
Home
the
Loan Bank Board in Washington,
D. C. and a meeting of the So¬
June
charter
pected
14,
to
adopt
the
It
arrangement.
for each
ex¬
come
effective on July 2. Mr.
Dwyer emphasized that the move
convert
originated with the
Society's board of directors who
to
the
decision
only
after
careful and deliberate
study. In a
letter to 55,000 savings members,
located in 46 states and 39 for¬
eign
countries,
it
explained
of the con¬
was
that the sole purpose
version is to make
available, the
broader advantages and facilities
of the Federal System. The Frank¬
lin
Society, organized
by
news¬
paper men and
blizzard
printers during the
1888, claims the dis¬
of
tinction of being the largest sav¬
ings and loan association operat¬
ing under the supervision of the
State Banking Department. After
the
conversion
pleted,
the
program
institution
is
share
to
also
Eugene
of
the
F.
*
be
Colonial Trust
York,
at
a
was
dinner
at
Chairman
Committee
of
Company of New
honored
the
on
March
Lotos
rec¬
offer
at
April 25.
regular
a
\
27
Club,
*
per
Gersten,
President
an¬
March 22 that Assist¬
Cashiers Raymond J. Clark
ant
on
and Robert P.
stock
gard
and
thereto
columns
the
Graham, associated
15, page
head of
as
of
the
Vice-Presidents.
9
San
*
■
Fehn, Vice-President
The Bayside National Bank
New York, at Bayside,
of
Queens
announcement
by
J.
President.
of
of
in
our
J.
«j»
%
Jan.
Gock,
board
of
Trust
tion,
of
San
presented
ice
pins
nition
of
&
Mr.
Fehn
February of this year was ap¬
pointed Officer in Charge of the
Little Neck office.
Vice-President
He
of
is
the
Second
Queens
County Bankers Association, Past
President of the American Insti¬
Banking,
Chapter, and
Essex
past
a
County
member
of
the
faculty of the Nassau County
Chapter of the American Insti¬
Banking.
♦
into
to
Club
are:
at
Francisco,
recently
four
their
a
The
six
Day,
of
Executive
The
Philadelphia, has
leave of
months
absence
to
undertake work in
a
Then there
Appraiser,
and
Ventura
22
similar
held
three
of
and
the arrival of the New
of sensational
They are:
Eugenie
Nivoche, Mrs. Bessie Roberts and
Peoples
of
the
Executive
Joshua
a
charter has been
branch
new
at
6520
The
office
Fourth
granted for
to
a
be
located
Avenue
South.
office will be under the
new
of
management
John
King,
now
Assistant Vice-President and long
associated with the First Avenue
branch
of
the
branch
a
been
com¬
period
of
for
institution.
office
will
This
be
the
Peoples National Bank
in Seattle.
Branch offices
located
in
Renton,
Hoquiam,
Anacortes,
and
x
? i
/,
We
?vV
■*
are
stood when
we
pected
some
capacity in Secretary of the Air July 1.
to
be
of
time
about
be
grateful for
of the danger of being misunder¬
means
are
essential to
ends, but, after all, if men have been dis¬
loyal to their country, if there has been treason in our
midst—and there has
of
it—are
not
the
apparently been
courts
of
law
a
shocking amount
the
.place to try such
charges and exact appropriate penalties—courts of law
where the rights of the innocent
(and for that matter of the
guilty) are protected as provided in the Bill of
Rights, for
example? Are not the normal law enforcement officials
of government the real
for their
culprits who should have to answer
neglect to Congress? If such investigative work
is essential to the
proper functioning of Congress
it not be conducted in
private at least to the
land
date
branch is
result of such
constructive
sary to
The
aware
ask whether such
the
new
area.
as a
Use the Courts!
fully
ex¬
Sound
Washington
by means
institution, we shall
public?
opening of the
in
conducted an inquiry without
accompanying some of the others?
of his investigations to
bring an end to
total to 12, all serving the
Puget
to
civilian
Everett,
direct result
fanfare
very certain that
as
a
also
the
Bremerton, "which will bring the
year
special consultant in
are
Kent
Washington
one
•
Committee, and
Green, Jr., President, that
were
have reason to
the results of his work at
any rate.
of
Washington, in Seattle, announced
through P. A. Strack, Chairman
a
At
is able
this
Bank
of
some
it
National
as
was
any rate, the Corporation has long
outlived its usefulness and if Senator
Fulbright, who has
so
far as we can discern
service.
The
who
men
sensationalism.
term
same
of
ence
Santa
counties.
ceremonies
the
Deal, and not
investigations, but it
vastly expanded
and became the instrument for
squandering of almost
countless billions of the
taxpayers' funds under the influ¬
pins presented to
for
women
even
way.
Quarter-Century
Otto
District
findings of the Ful-
such
Now the Reconstruction Finance Corporation was,.,
without warrant, so we
think, brought into being prior to
initiated
Pico
March
a re¬
same
on.
"asinine"
group, and the later revelations which not
the President has had the hardihood
to label in any
anniversary
men
goings
the
were
bright
recog¬
Hirschi, Manager,
branch; Leslie G.
Adams, Manager, Vermont and
48th branch; Kenneth A.
Nairne,
Vice-President?, San Diego main
office; and Blair A. Stewart, Se¬
sixth
mencing April 2 for
from
in
men
25th
loried had part in these
serv¬
*
Pennsyl¬
vania Company for
Banking and
of
Nar
Associa¬
bank's
Main
the
of
America
diamond-studed
of
the
new
*
L.
Vice-President
Trusts
plan
issue,
Savings
largely as
indirect, of the employment of this
-or
during the early thirties brought to Washington a large
of "queer" geniuses some of whom were to become
just victims of the "red herring" investigations in the
earlier postwar
years. They, for the most part, apparently
deserved what
they got and the country is the better off
for their
exposure—although, of course, one finds it diffi¬
cult to be rid of the
impression that not all of those piL-
it
Chairman
Bank
power and influence
crop
Curran
11
instances institutions which had
some
places of
procedure in earlier years. There can be no doubt that
the "scandals" with which the
public had been entertained
;
tional
recently, the technique has been turned against
sult, direct
Curran.
Mr?
into
come
of
following
Mr.
176.
page
Wilson
joined-The Bayside National Bank
in 1945, became
Manager of the
Turnpike office in 1948, and in
William
President,
Francisco
Borough, has been appointed Su¬ Miss Merle Thomas.
pervisor of Branches,
it
it
according
of
More
a
individuals and in
*
of
tute
1149.
bank's retirement
noted
was
were
of
re¬
California National
retirement
of the
some
inquiries of previous years which were
dignified, serious-minded way and welldesigned to arrive at a sensible conclusion as to what ought
to be done, and
carefully avoiding those things which
damage institutions and individuals which were clearly
not
deserving of injury.
the'fcsreign department
under the
On
tute
trast to
conducted in
these
appointment
retirement
The
Barbara
Dayton,
a
burden upon the nation ever since.
Here was
typical Kefauver Committee "show" making full use of
all the "props" then available. It stood out in
sharp con¬
*
Calkins,
the
of The Anglo
nior
advanced
to
been
which
with
slightest doubt, that such
these produced the popular following which
a
were
in
as
then
literally dozens of other provisions of law which, have
it
additional
item
an
as
as
resulted in the extremes of the two securities acts and
unsub¬
for
discrediting before such parts of the public
procedures
which
>:<»
A.'
"Hearings" of the Early'30 s
our
could be reached at that time with such facilities,
existed. There cannot be the
the
stock,
appeared
March
Allard
to Assistant
B.
:
given
expired
on
March 19>
The capital is in¬
creased from $3,000,000 to
$4,000,000 by the sale of $1,000,000 of
with the credit department at the
main office, have been
Alvan
of
shares
with the bank.
*
Company of New York,
nounced
20,
the
stockholders
a
Di¬
of The Public National Bank and
Trust
t
The
preemptive rights
A.
capital stock, payable
Chested
E.
alike for
■;
represents
50,000
present
an
April 2 to stockholders of record
granted
*
Kinkead,
Executive
the
on
declared
the
March 23.
it
42%.
portion
of
Those
,
may
Ark.,
Stockholders will be
approve
on
issue
Bank
share
per
nine shares held of
special meeting
com¬
will
known as Franklin Society Fed¬
eral Savings and Loan Association.
*
March
additional share
one
ord April 6.
new
is
the change-over will be¬
reached
on
stockholders
subscription at $30
ciety's shareholders will be held
on
to
at the rate of
asked
scribed
,,
attention to the past two
decades, we
well begin with the so-called Pecorat hearings, center¬
ing about abuses, real and imaginary,-in the securities
markets, and hailing guilty and innocent more or less
Eastern
Vice-President Elwood J. Schmitt
%
additional 15,000
shares
of
the
bank's $20 par value capital stock
for
stated,
announces
of New York voted
to
is
The merger became ef¬
*
of
City,
March
15,
March 19.
.
underwriting syndicate
*
Feb.
Directors of Clinton Trust Com¬
pany
Home-Building and Savings*
Broadway, New York, that a
217
in
to
quarterly dividend of 25 cents
made
was
referred
these columns
on
rectors
#•:
and
•
same
being paid, namely
$2 per share per annum. If the
stock increase is authorized, war¬
rants
covering the subscription
rights will be issued and mailed
about May 14, to shareholders of
now
15,
22, page 1236.
Details of the merger plans ap¬
fective
rant the
Safety
issue of March
bank
slightly more than $30,000,000. The directors expect that
the earnings of the bank will war¬
National
it
at
long, long developments
ca¬
8.
"Globe-Democrat" stat¬
an
Louis
new
March
on
pany, which exceed $30,000,000, or
the
unallocated reserves of the
of
the
Chemical, approved
by the stockholders of both banks
000,000 compared with $319,000,000 at present.
of
merger
St.
of
the bank from $25,000,000 to $25,-
Bank
of
a
«
Forrest
issue
or
sort of culmination of
a
To confine
it
its
instance,
upon more or
and at every stage of it
designing politicians have madethe utmost use of it for their own
purposes. .
'
managed by I. M. Simon & Co.
is offering 5,159 shares of stock of
the Boatmen's National Bank of
Trust
Company of New York to
that it is
$250,000 stock dividend.
a
ed that
given
&
of
capital of $500,000, in¬
by
March
been
of
Bank
increased
(
n
National
St. Louis
Bank
The
isolated
an
if it could be regarded as a
less by chance, and one which,
might well be avoided for the most part in the- future,,
there might be less concern over the matter. The fact is,
creased from $250,000 on March
8,
Banking
on
capital
.reported
In
State
it
the
at
#
Department announced
un¬
were
procedure hit
Arkansas,
.
rangements
to
Colonel
a
National
stock..
new
Executive Committee
f.t
i<
in
*
since 1929.
%
continues
as
pital became effective March
its Board of Directors and Chair¬
share for each 6.2 shares held. Ar¬
appalled before the possibilities of harm inherent in such
procedures, appalled not about the damage it may inflict
upon underworld characters, demi-world figures or their
cohorts, but upon quite innocent American citizens. If this
work.
through
a
stockJ dividend
of
$100,000 and the sale of $100,000
member of
a
page
See It
Alexandria, Va», from $200,000 to
$400,000, has been brought about
Army's Military In¬
Division
during
the
first World War. He is
he
commission
a
>:>
of
from first
pres¬
discharged with the rank
United States
telligence
Continued
Thursday, March; 29, 1951
.
on
in the Air Force Reserve.
tendered
was
services
communication
Colonel, and
hold
The
Major Kinkead's career as
statesman, soldier and banker." A
member of Congress from New
Jersey during the years 1909-1915,
Major Kinkead served also in. the
share to the shareholders
on
birthday.
ute to
increasing the number, of shares
outstanding from 6,200,000 to 7,~
*200,000. Par value would be un¬
changed at $20 per share. A spe¬
cial meeting of shareholders
is
called for May 2, to act 'on the
proposal. Upon approval, the ad¬
$40
75th
house. Arthur S. Kleeman, Presi¬
dent of Colonial Trust, paid trib¬
bank by the sale of 1,000,000 additional shares of its capital stock,
ditional shares will be
his
by the direc¬
tors of the company and guests
included officers of the banking
March
on
proposal
capital funds
the
crease
dinner
Gity
voted to recommend
was
marking
in
was
of
the
un¬
result
.
emergency
Theatre
CAPITALIZATIONS
At
for his
a
period.
During
World War II, Mr. Day served
with the Army Air Forces in this
country, and
in
the
European
NEW BRANCHES
REVISED
He is
as
part-time basis during the
a
CONSOLIDATIONS
NEW OFFICERS, ETC.
request
a
work
...
only the guilty
And would
not such
supply information
be much better
in the
glare of public
circus "stunt?" and
are
should
point of being
pilloried before the
to
investigations as are neces¬
Congress as lawmakers of the
obtained in
some
way
other than
gaze with the dual
developing
a
danger of inviting
state of public mind in
t
t
^
yolume 173 -Number4998
which
remedies
,
.
.
The Commercial and
bad
as
the
as
disease
likely to
are
spring up?
;
Continued
seems to us that all these and many similar ques¬
on
much greater significance now that these
things are to be televised. How dreadfully easy it would
for
skilled
some
cross
examiner
of
Congressional
de¬
a
Committee (not bound by ordinary rules of evidence
signed to protect the witness) to make even the best and
most diligent
public servant appear loathsome — unless,
of course, the
public servant was capable of "putting on
show"
a
It
as
lead
the
good
to
seems
as
that of his professional questioner!
disturbingly important that those who
us
public thought—if
lead it effectively in
anyone can
of these "shows"
presence
the rank and file of the
very
from page 3
now
popular—remind
so
real dangers lurking in this
for the
gives substance to the belief that
control
and
surely
is
Minneapolis,
Paul,
between
at
Victor
9,500 feet
Creek
day
Cripple Creek, Colo.
above
sea
Victor.
and
world, .and
ore
and
dedicated by Lowell Thomas about
It
serves -an
definitely
capacity.
level
area
about
the
is
largest
in
the
of 20 miles in which there is sufficient
hand to operate for 37
on
mill
gold
years
at
1,000 tons
per
This
capacity can be stepped up to double its
present amount as mew mining operations warrant.
The mill
treats dump ores which were formerly shipped to their old mill
in Colorado Springs and also treats ore produced in the virgin
territory unwatered by the Carleton Drainage Tunnel from such
mines
the
as
Cresson
Consolidated, Ajax,
Elkton,
United
Gold
Mines, Dr. Jackpot and many other mines located in that area.
Mines which haVe long been dormant are now preparing to open
up their
shafts^ and in those mines owned by the Golden Cycle
Corporation various levels are being leased to individual workers.
The corporation has found this more profitable than operating it
themselves due to the scarcity of labor. While the lessees benefit
from any Jiigh-grade strikes, the corporation in turn benefits.
It
was,-indeed, a revelation to the 55 members of the Bond
see
the operation of this huge mill and the ease with
which 20- and 25-pound rocks were broken up in the compara¬
tively small Holland crusher.
This crusher does the work of
eight crushers formerly used in the old mill at Colorado Springs.
Labor economies will keep their payroll to between 50 and 55
Club
to
mill against 250 employed in the old plant.
in handling the ore due to
the old freight rates between Cripple Creek and Colorado Springs.
The Southern Colorado Power Company is furnishing the power
employees in the
A
savings of $2
for
new
ton is effected
per
this operation.
This
dormant
new
mill
the
for
should
bring
to life
last three years due to
an area that has been
the fact that there was
place to mill the ore from the mines or the dumps.
no
Those
of
members
Creek when the
the
convention
NSTA who
was
took
the trip to
Cripple
held at the Broadmoor in Colo¬
Springs would have been amazed at the activity going on
rado
today in comparison with a year and a
half ago.
TRADERS
ASSOCIATION
1950.
A
Security Traders Association of New York, Inc., announces
their 15th Annual Reception and Dinner, to be held at the Grand
the Waldorf-Astoria
Ballroom,
Hotel, New York, N. Y., Friday
evening, April 13, 1951.
Reservations
made
foe
as
early
are
$14 per person, and it is suggested that they
possible.
as
Members of the
Arrangements Committee are: Daniel Gordon
but
over
in
was
good bond in an
territory providing a
current income at 66 of 6%.
ment
entrenched,
less
but
more
romantic item than either of the
above, is Central of Georgia Rail¬
SECURITY TRADERS ASSOCIATION
Association will have its
Spring Outing on May 18 at the Country Club of Maryland.
activities will consist of golf, stock exchange, dinner and the
Baltimore
Security
Traders
annual
The
usual
evening entertainment.
pickup in earnings on this
a very real possibility,
to new industry locating in
But
a
property is
due
territory served, the high pace of
activity, and in¬
current industrial
The
Entertainment
Committee consists of Allison M. Berry,
Watts & Co.
^
track miles
1,800
from Savannah to
run
The Summer
Outing of the Securities Traders Association of
will be held on Tuesday, June 26, 1951, at
If this is received,
enable payment
funds shortly.
calculated
22 V2
back and
%t
current in¬
Horner
B.
Edwin
Otto H. Steindecker
security holders.
Of
course
this breezy
quite a few of them. And I've
only
high-spotted four railway
issues
currently
wending
their
volatile way through Wall Street.
in
However,
the
search for offsets to
higher yield without a
gambler's risk, this income deal
ing
for
does offer
a
Bankers Offer Jones
&
vast current
inflation, and
solution of sorts. The
One
Laughlin Stock
industrial
tions
the
of
of
the
reached
important
most
equity financing opera¬
the past year or more
with
market
the
dieselization, and (3) voracious Laughlin
Steel
Corp.
common
sinking fund purchases, operating stock at $25.25 per share.
steadily to strengthen the secu¬
Proceeds of the sale, with other
rity, and improve interest cover¬
age
of income bonds, suggests
their
current
consideration
by
corporate funds, will be used by
the company, the nation's fourth
yield-minded buyers.
these
issues
have
Marshall, Gleve. Mgr.
For First Boston
receive
a
ing ' facilities.
ingot
present
company's
The
is
capacity
about
4,846,000 tons.
income 41/2 today
and by good fortune
$225 interest windfall,
It is expected
this
buy
modernization of exist¬
ment and
Corp.
at around 80,
that the remain¬
ing funds required for the 19511952
will
program
derived
be
bond will stand you 57 V2
fairly decent prospect of
from
retained earnings, deprecia¬
earning sufficient to pay 4]/2% in¬
tion,
depletion
your
with
a
annually from here on—an
terest
down
There
also
is
necessary
operating in the
effectively
and
profitably.
CLEVELAND, Ohio—The First
after reading this, you'll Boston
Corporation announces the
investment theme song
appointment of Frank L. Marshall
—"Georgia On My Mind." Central
as manager of its Cleveland, Ohio
of, that is!
office, Union Commerce Building.
Just one more, and this one is
Maybe
a new
Marshall has been associated
Mr.
a
to
A plan is now offered with the
corporation for the past
futurity.
reorganize the Missouri Pacific,
this
years
in
current
for the
bankruptcy. Under
plan, and assuming,
moment, its ultimate con¬
firmation, there will be outstand¬
ing $143,594,632 "A" income mort¬
gage 65-year 4V2s. They stand in
($135
sue
a
18 years
bond).
is slated to
This mortgage is¬
be junior to $207,-
fixed
interest
interest on the whole
debt, fixed
and otherwise, could
has
Mass.
off
H.
Stuart
as
interest of na¬
permits
which
pany
a
five-year period as the
are
completed.
The com¬
under
that
estimates
cer¬
tificates
granted to date approxi¬
mately
$115,000,000
may
be
so
With Waddell & Reed
(Special to The Financial Chronicle)
& Co., 24 Federal
formerly with El¬
& Co. and Bond,
Minn. —Ray¬
MINNEAPOLIS,
O.
connected
was
Judge & Co.
over
projects
Chronicle)
Bright
Street. He
mer
—
become
with Georgeson
items;
and annual
of
BOSTON,
current
certified
portions of the costs to be written
Georgeson Adds
Stearns
the
amortized.
in its New York office.
(Special to The Financial
in the
defense
tional
Frank L. Marshall
territory, which could be consoli¬
in
been
have
program
ar¬
All major proj¬
included
ects
substantial possi¬
smaller railroads
dated
borrowings
ranged in 1950.
price.
amortization
and
and
balances,
basis at this written-
8%
the Plum Hollow
of
pay-date May 1, 1951). If
500,000
Country Club, on Lahser Road, between 8 and 9
see
these bonds (up to next
on
official
you
to
Detroit and Michigan
Mile Road.
ber
of
line to receive back interest to 1948
SECURITIES TRADERS ASS'N OF DETROIT & MICHIGAN
may. never
light of day, unless the plan
is approved by the requisite num¬
largest steel producer, to retire
A number $40,000,000 of 2x/2% serial notes
upgraded which were issued on Feb. 1, 1951,
Atlanta, to Birmingham, Alabama,
themselves handsomely in quality to provide a part of the money
and Chattanooga, Tennessee. The
and
in market price
in recent required for its $200,000,000 . im¬
port of Savannah got a big lift in
Rio Grande 4y2s sold in provement, expansion and mod¬
World War II and the economic years.
1947 in the forties; they will bring ernization
program for 1951 and
growth curve-in this entire area
well above 85 today. Rock Island 1952.
is indeed impressive.
"incomes" rose from a heavy dis¬
During the five years through
A total mortgage debt of a little
count
till
they were redeemed. 1950
Jones
&
Laughlin
spent
less than $17,000 a mile is not
Look at Chicago and Eastern Illi¬
$190,000,000 for such purposes,
excessive; and about $13,300,000 nois incomes at
81, Seaboard 4V2s affecting all phases of its inte¬
of income 4V2s are preceded in
at
91, St. Louis San Francisco grated
operations
from
raw
lien only by $11,774,000 first mort¬
41/2s (convertible into 30 shares materials
to
finished
products.
gage bonds
on trackage owned, of common) at 84. Not
gilt-edged, The current program, which in¬
: terminal
facilities, valuable coal
perhaps, by old-fashioned stand¬ cludes projects related to national
lands, and the entire stock of ards, but they're going around
defense needs, calls for further
Ocean Steamship Company of Sa¬
trying to look like high-grade development
of
raw
material
vannah. There are a lot of swell
bonds and getting away with it
properties; an increase in rated
assets lurking under this
mort¬
pretty well. Would you like to annual
ingot
capacity
by ap¬
gage.
try some incomes on for size?
proximately
1,560,000
tons,
or
Well, what's the current pitch?
32%; new finishing facilities, and
First of all Central of Georgia
continued improvement, replace¬
expects some $2,700,000 in tax re¬
creasing production of coal.
for
Chairman, Robert Garrett & Sons; Howard Kellermann of Alex.
Brown & Sons; Harry Piet, Jr. of John D. Howard & Co.; Edwin
Sunderland of John C. Legg & Co., and Thomas Yeager of Baker,
bonds
the
triple dynamic force of (1) resur¬ public offering today (March 29)
Company general income "B"
41/2s due 2020. Historically it looks gent railway earning power (espe¬ by a nationwide investment group
cially since Korea), and (2) high¬ headed by The First Boston Corp.
as though interest
coverage here
er
operating efficiency through of 1,000,000 shares of Jones &
is to be found only in good years.
get
The
65-year 4 x/2
way
bility that Central of Georgia may
take under its wing one or two
-
MOP
taking note of the ageless yearn¬
May 1, 1951.
A
,
Next
for treat¬
Reservations), Bernard Weissman,
Siegel & Co., Digby 4-2370, Teletype No. NY 1-1942; John C.
Blockley, Harris, Upham & Co.; Joseph C. Cabbie, Abraham &
Co.; David H. Callaway, Jr., First of Michigan Corp.; Joseph M.
Kelley, J. Arthur Warner & Co., Inc.; Wilbur Krisam, Geyer & Co.,
Inc.; Salvatore J. Rappa, F. S. Moseley & Co.
BALTIMORE
this
70
these
But
quite
almost
Teletype No. NY 1-1666; (Hotel
bond bought to¬
perhaps the soundest of the
four. I've roughed it out for you.
in
Chairman, Tucker, Anthony & Co.; James V. Torpie,
Vice-Chairman,
Torpie
&
Saltzman;
(Dinner Reservations),
Thomas Greenberg, C. E. Unterberg & Co., Bowling Green 9-3565,
Mullin,
a
is
earned
1949 and
annual coupon comes up
terest
The
At
70.
coal and newsprint.
ore,
twice
it's
OF NEW YORK
Superior, and
power.
about
of
SECURITY
paid,
day would be reduced.in cost to
(A)
Edwin B. Horner, Scott,
you realize that, in
Horner & Mason, Inc., Krise Build¬
brief, I've only hopped
ing, Lynchburg, Va.
Sinking fund has reduced "in¬ about on my topic. I haven't men¬
income
bonds
stemming
comes" by about $5,800,000 since tioned
(B) Otto H. Steindecker, New
issuance, and is a factor for ready from industrial and real estate York Hanseatic Corporation, 120
marketability. Income interest is reorganizations — and there are Broadway, New York 5, N. Y.
a
custom
If that is
Heavily dieselized, this road has
solid traffic in wheat, lumber,
This is the mill that
week ago and is located
half way between Cripple
the
issued, to¬
bearing $135 of "if" money.
day,
section of Canada
a
be worth about 30.
4V2, to
come
dynamic industrial ex¬
augurs well for future
expanding
On Friday, March 24, the Bond Club of Denver sponsored a
trip to the Carleton Mill of the Golden Cycle Corporation located
against
debit
non-cumulative,
DENVER
angels appearing
26.
page
It is around 83]/2, when
Canadian Pacific
by
no
livestock,
OF
on
and
strong enough, as a mortgage in¬
property, while the geographic lo¬
cation of the line, connecting St.
a
CLUB
Management
maintained.
be
can
here
payments
interest
regular
pansion,
earning
Notes
lien
earnings
every year back to
Earnings have shown a great
each
in
j
version
$6,309,000 of first mortgage 1938.
4V2s on 3,100 miles of track. Thus improvement in the last 24 months.
exceedingly low (less than $7,000) You'll have to look into this more
thoroughly, but it seems to me
debt per mile, resulting from an
bond
is
intrinsically
incisive
reorganization in
1944, that this
enjoying
NSTA
in
follow
incomes
these
of
Duluth with
on.
Here's the 1951
of the two
been met by MOP
have
only
gotten when the show is
was
29
Did You GUESS?
$14,800,000
past six years.
type of procedure—dangers which are likely to be for¬
BOND
(1353)
r
Income Bonds—For Income
tions take
be
«
-f •
•
It
t
*
"wr
Financial Chronicle
mond
B.
Gertrude
Munger,
Powers, and Elizabeth
have
&
S.
W. Rogers
joined the staff of Waddell
Reed, Inc.,
Ruildine-.
Metropolitan Bank,
'
•
:
30
(1354)
The Commercial and Financial Chronicle
Continued
from
question.
All this must be increased. Consequently, police state, agricultural and in¬
possible when Con- because of the competitive pic- dustrial slavery and a minimum
gress enacted the Assignment of ture, pricing and sales resistance, standard of living. The prosperity
Claims Act of 1940 (Public Law our manufacturer may very well of our
country »has been com¬
No. 811, approved Oct. 9, 1940).
find himself out of the market.
pounded of many things—the re¬
made
was
Serious Impacts of Credit
Restrictions on Business
it
commensurately
maintain
and distribution of essential
Time does not permit me
detail
regarding the
into
inate
its
casino
observations made by the drafters
have
—
been
of
the
Preliminary
Statement. askance by businessmen and the
Certainly, this
However, I would like to read one public generally.
pertinent excerpt which is indica¬
tive
of
the
trend
perhaps
credit
in
and
in
the
thinking
restriction
of
meet head-on the
the
itself
does
of
long-term solu¬
Any increase in lending at
a more rapid rate than
production
can be
increased, exerts an infla¬
tionary influence. Under present
.
.
conditions
of
ment
labor,
of
very
high employ¬
materials
and
equipment, the extension of loans
to
finance
have
an
increased
initial
in
a
run,
not
will
ultimately result
commensurate
production of
are
output
inflationary effect;
but loans which
an
increase
essential
inflationary
in
in
nature
the
long
whatever their temporary ef¬
It is most important,
fect may be.
however, that loans for
non-essen¬
tial purposes be curtailed in order
to release some of our resources
for expansion in
of production."
more
vital
type
the
areas
of loan was a far cry from
lofty
purposes
behind the
while it is still
Screening of Borrowers
Loans—It
Jan.
the
Government
30,
applications
Let me give you another ex-
legis-
anJPl©*
repealed
available
*n the textile industry,
collections—of Me—have slowed
to-
Act
for
as
ing the country to
of
of
Reserve
but
220
endorsement
of
'
rearm.
companies
will make for further demands on
with
working capital or the necessity
making credit available for busi-
^ continued or additional bank
factors
finance
concerned
are
borrowings.
Like other financial agencies
the factors are restricting credit,
operations; for productive
purposes. They have had little or
no part in the
large expansion in
ness
debt
consumer
commodities
that losses
were
extremely small.
usual
Naturally,
they do not see the
the
present
time, of
sharing their interest return.
need,
(3)
Under
at
Purchase
.
Title
provided
3
Act
that
Commitments
that
occurred
has
of
the
of
1950
the
Defense
it
location
businessmen
defense
government
of
plant
contracts,
indirect credit
on
allocates
purchase
which
commitments
the recommendations of others
theless, recognizing that between
has
20 to 30% of the nation's 1951
pro¬
duction will be devoted
these commitments.
entered
into only
a
financing
to
to
and
? economy*of'our country is
down
™hest P^uctive mechanism
.be. w0ldd bas ^ver known.
i/nn^nnn11
Cf ls.1°1^ef
{>1,000,000. It comprises 4 million
non-defense
the
the-mill
heretofore
secured
in-
commercial
civilian
•
to
business enterprises, more than
half of them in retail trade and
services. Its 240,000 factories pay
of
ou* $ ® billion a year
run-of-
nancing and preparing itself
dozen of aid
business in the financing
essential
,
„
the
with
restrictions
of
sharply
Conclusion
government
clamping
ment
requirements
seri-
buy the complete output of
ventories, the commercial finance
facility.
To date, the General
industry is preparing for curtailAdministration
but only after a very careful and
tial increases in raw material
defenseand by a 8ain in labor costs-
giving
Administration
on
and natural wealth of the
the
skill and
ingenuity,
know-how
technical
of labor and
management, the wise system of
laws, the checks and balances un¬
der
which
live—and—one
we
other ingredient—I am tempted to
call
it
the "Magic
Ingredient," of
credit, which has stimulated
and
supported the manufacture
exchange of all the goods
and
commodities which pour from
our
stream would
We
have
dry
seen
fi-
because
,
of
the complexities of every day life
people
have
lems
and
elsewhere
tried
to
entirely
have
the
in
turn
world
their
prob¬
to government,
over
submitted
to
and
more
control.
We must especially scru¬
at¬
any
tempts to federalize such
a fragile
intangible
commodity
as
credit—the
"Magic - Ingredient"
which has played such an impor¬
and'
tant
part
in
velopment of
the
our
industrial
'
de¬
country.
Halsey, Stuart Offers 4
Consumers Power Bds.
An
underwriting
group
headed
in wages
by Halsey, Stuart & Co. Inc.
Its
defense-.and salanes to their workers.
and
and
and stop.
up
how
increased in the light of substan- tinize long and carefully
consideration
was
could
a
their
of
excess
requirements.
With
ous
in
land,
We
deliberate study with each case more government control.
standing on its own merits and have seen the final result of this
course
in
the
pathological and
with no across-the-board general
policy. In some cases, of course, hysterical Nazism of Hitler, in the
they have had to increase the ex- spurious cardboard Facism of
tent of accommodations heretofore Mussolini, and now finally in the
colossus
of
Communist
extended. They have found that brutal
the smaller mills which have Russia. We in this country will
been able in the past to operate on be slow to abrogate our individual
limited capital, now find their freedom of judgment to Federal
work, including in their plans al-.
—
lengthen before
sources
it shqrtens.
Why? Because of industry in a fabulous stream. In
larger inventories. This condition our free state, without credit, this
potent weapon in help-
a
will probably
it
in order to re-establish the
loans
totaling $142 million.
Of
in recent years largely as the rethese, 120 applicants have been suit of record
purchases of autoapproved
for
$111
million
in
mobiles, washing machines, teleloans.
The reason is fairly ob¬
vision sets and other durable goods
vious.
Private
banking is not on
the
installment
plan.
They
very enthusiastic about giving up
have discouraged and
have ad-;
a part of the interest return as a
vised their clients against specconsideration for the guarantee.
ulation in inventories. They have
Banks have had a great deal of
discouraged manufacturers and
experience with the V-Loan pro¬
wholesalers from stocking up on
gram in the last war and found
Services
never¬
Federal
received
had
Banks
While it is too early to
say what
types of loans will be granted by
banks who adopt the
principles of
gress
and
Guarantee
is reported that as
(2)
Production
restrictions,
useful
been
never
Commercial
establishment of the agency.
not
tion of controlling credit
".
and
particularly
has
UP noticeably. On June 30th, the
turnover of receivables was averaging
approximately 28,-"days»
whereas on Jan1st, it
had
stretched to 41 days. There are
no signs that there will be any
gotiation—has necessitated amen- improvement in the rate of turnregarded
datory language by the 82nd Con- over in the months ahead. In fact,
itism and
or
processing
and services?
that
This
lation
day for the financing of governpolitical influence dom¬ ment
contracts, some unforeseen
operations has placed
liabilities—mainly as a result of
goods the whole agency under a cloud
interpretations by the Comptrolof suspicion.
Loans such as the ler General
of contractual clauses
one to the Mapes Hotel in Reno—
to go
pertaining to repricing and renewhere the top floor is a gambling
many
increase
production,
Thursday, March 29, 1951
.
.
in
contracts
6
page
.
fering today
is of¬
(March 29) $40;000,-
directly
6 million farms cover more than
(4) Amortization of New Plant needs and
particularly in the fi¬
or
Consumers Power Co. first
indirectly to national defense, Facilities—Of the various forms
a
billion acres. In 1950, alone, it 000
nancing of government contracts.
a
very substantial proportion of of
built a record of 1,400,000 housing mortgage bonds, 3%% series due
government
assistance
pro¬
commercial loans will, of neces¬
However, as you know, com¬ units.
1981, at 101.467% plus accrued in¬
grams to date the provision for a
mercial
finance
companies
and
sity, be devoted to the financing
terest.1 The group won award of
If
one
were
to
five-year
amortization
of
new
attribute
the
of the production and
factors, while they have sizable
the
issue
at
growth of facilities for tax
competitive
sale
main reason
for the
marvelous
purposes
has
invested
our
or
industrial
and
permanent >capital
commercial
record America has established it Tuesday on a bid of 100.80467%.
produced more actual new plants
funds
which
have
been
built
up
community.
Proceeds from the financing, to¬
'>r
than any of the other aid forms.
abiiity of small enterprise
through the years, nevertheless,
I do not think we can overstate
gether with other funds of Con¬
to tbrjve
As
of
February
16,
416
cer¬ are
essentially retailers of credit
the importance of banks and other
sumers Power Co., will be used to
But now that we are faced with
tificates for fast write-offs had and finance and
depend to a large
redeem all of the $5,300,000 first
financing institutions in making a been
nati0nal emergency what is the
granted.
They
covered
extent
on
wholesale
short-term
.
most judicious use of their lend¬
mortgage bonds of Michigan Pub¬
prospect ahead for private enternearly $3 billion of new or ex¬ bank
credit
funds
emu.
and
term
bcim
lic Service Co.; to pay off $8,000,ing powers. The businessman is
rmgp?
panded capacity. But this is not loans from
institutional
lenders
000
'
going to look with a gimlet eye
temporary bank loans incurred
too
In the two. years following Pearl
great\a record when it is such as insurance
on the restriction of
to
companies. provide funds for construc¬
his credit.
considered that in that time in¬
Harbor, some 16% of the 3,500,- tion; to provide funds for acquisi¬
Consequently, it is only natural 000 small
Credit Expansion by Government dustry filed 2.500 applications in¬
enterprises, then oper- tions and improvements, and for
that
commercial
finance
comvolving $8 billion of new facil¬
ating) had to shut down,
the corporation's construction pro¬
Any discussion of credit restric¬
panies
and
factors
view
with
anx¬
ities; and when it is further con-:
tions would not be
Today, with 4 million small busi¬ gram. ; :'4 *.,
complete with¬
sidered that steel and allied in¬ iety the superficial thinking that
out some comment on the
nesses
Upon completion of the financ¬
operating, an injudicious
part the
being shown in some quar¬
dustries have accounted for nearly is
restriction
of
government itself is playing in the
credit
may
cause ing the company will have out¬
ters relative to restricting com- ...
two-thirds of
the
$3
billion
of
extension of credit. For
casualtv list to beGOmp mijch standing $178,825,000 first mort¬
expansion
mercial
credit.
certificates issued.
They feel that
of defense
larger
facilities, the govern¬
hecessary
It
i£. gage bonds; $7,250,000 bank loans,
some of the matters
presently
bement has four
therefore
PSoGntial
that
during payable
in
instalments; 547,788
major devices for
ing discussed such as restrictions
Credit Policies of Private
£
the period that our
extending credit:
economy
is shares of $4.50 preferred stock;
on
a
percentage basis of loans
Industry
changing over to a defense econ¬ 200,000 shares of $4.52 preferred
(1) Direct government loans;
previously obtained would be a
The
commercial finance com¬
and
5,615,176
shares-of
omy great care and study be ap¬ stock;
serious mistake.
(2) Government guarantees of
panies and factors of this coun¬
plied to the problem of restric¬ common stock. The preferred and
loans;
A
common
stocks are without par
judicious
application
of tion of bank credit.
try which, last year, had a com¬
(3) Purchase commitments (as
value.
bined volume of $6.4 billion worth proper extension of credit may
To believe that the inflationary
provided by Title 3 of the
for
credit
lines
for
Consumers Power Co., organized
of financing are vitally concerned call
some
consequences of a defense effort
Defense Production Act of
in 1910, is engaged, entirely in the
with any program of credit re¬ borrowers, which, in dollar totals
*■'
which we are now engaged in are
1950);
State of Michigan, in the genera¬
may
be
larger
than
heretofore
striction.
;
unmanageable, or that the re(4) Five-year
amortization
of
tion, distribution and sale of elec¬
quired
sacrifices
are
As
unbearable,
you
know, such companies Manufacturer
new
facilities for tax purtricity in 1,455 communities and
A, engaged in es¬ is to distrust and
perform
the
belittle,
without
function
of
supply¬ sential civilian
poses.
townships, including rural areas;
production, has an
reason, the productive power of
ing
credit
on a secured basis to
in the purchase and distribution
To date, the record of
inventory turnover of five times
accom¬
this country and its free economic
small
and
medium-sized
busi¬ a
of natural gas in 265 communities
plishment in these four categories
year.
He finds that because of
system. This is a challenge that
nesses by
financing
accounts
re¬
and townships; and in the producr
the increase in unit
has been
prices, labor we as Americans will meet.
disappointing.
ceivable, imports and exports, in¬ and materials
tion and sale of propane gas in
costs, he will need
(1) Direct Government Loans dustrial
and
We
are now at the
commercial
equip¬ a million-dollar credit line from
mid-point of the town of Manistee. Population
—It is reported as of
only a few ment
and
the
Twentieth
merchandise
inven¬ his
Century.
bank
During of the territory served approxi¬
in
order
to
maintain
weeks ago (Feb. 15) that the Re¬
tories.
Over the past 50 years
mates 2,960,000.
the same turnover, whereas last
construction Finance
Jbe
Pas^
y.ears
we
have
seen
Corporation they have played a leading role
the dynamics of the world acceler¬
Gross revenues
year he had no occasion to bor¬
during 1950
which
makes the loans on the in
ate tremendously. We have lived totaled
helping business to expand and row from the banks at
$114,350,814; gross income
all.,. How¬
recommendations of other Federal to obtain the
through two World Wars with $23,286,500; and net income
necessary working ever, his bank because of a
polagencies, had disbursed only 15 capital to manufacture and
mar¬
icy of reducing its lines to all its their tremendous and horrible ex- $19,004,340.
>:
payments, for a total of
$42,417,- ket new products.
customers,
proposes
to give the Penditure of--blood and treasure,
000.
What is the reason for
this
In
World
War
II
commercial manufacturer
a
credit
line
of
but
Perhaps
the
outstanding
feadelay?
Clarence N. MacElvain
First, the Congressional finance companies and factors
"
$600,000 or $800,000 " instead of ture of our times has been the de"
intent in the enactment
of
the experienced
an
unusual
expan¬ the
Joins
$1
million
which
he
needs,
velopment
of
two
things,
contemDefense Production Act was that
Cunningham & Co.
sion
in
secured
commercial
fi¬ To
the
manufacturers
such
a
poraneously
parallel, but
with
these loans were to be
(Special to The Financial Chronicle)
used spar¬ nance
loans, particularly as the credit would not be of much value. very different end results—on the
ingly.
A second reason has been
CLEVELAND, Ohio — Clarence
requirements
of
first,
defense He was able to make a profit one har?d the tremendous growth
overcaution on the part of those
N. MacElvain has become asso¬
contracts, and later, war contracts only because of his sales volume °t the industrial potential of the
in the Administration
ciated
with Cunningham & Co.,
who must and sub-contracts became
urgent. and
rapid
inventory
turnover. United States, and on the other Union Commerce
recommend them.
Building, mem¬
They seem to A tremendous volume of financing With an insufficient
line of credit hand the development of the to- bers of
want nothing but
the Midwest Stock Ex¬
gilt-edged risks. of government contracts was
per¬ he could not have the same sales talitarian state,
A third reason, is the
change.
He was formerly man¬
difficulty formed b,y them during this pe¬ volume in view of the slower
inOn the one hand, free enterunder which RFC
ager of the investment department
presently finds riod— the
security device
em¬
ventory turnover. With that his prise, individual liberty and for the Cleveland
itself.
The charge made
office of Paine,
by the ployed being an assignment of eosts
go up. his break-even point
^abounding material and spiritual Webber, Jackson & Curtis. In the
Fulbright Committee that favor¬ the proceeds of the
government is not met, and his unit
price benefits. On the other hand, the past he was with Otis & Co.
-
-
,
.
M
.
iuiiLia
.
^
™
*
■
.,
.
,
,
Volume 173
Number 4998
.
.
.
The Commercial wad Financial Chronicle
31
(1355)
Continued
from
11
page
JLhaJ
llilinllOll —'' /allll
llfLti
UFa
WtlAI
WC
110
w
tionarv
have
which
wave
looks'worse
spects
in
manv
than
we
had'
ever
which^here
is
It
cimnlv
""
If
supports this position.
hv
ereHit
a
entrv
Federal
ttef
far
nr.
Reserve
are
all
sit
has been -with
honevcomhcd
hv
approach to check ng the flow
dtd£
*nto thd consumer market
twisted
statis- hascredlt
not been effective.
mnciripra+im^c
lifted,
are
flllQUi
Second:
and
men
special
a
industrialists
Committee
of
220
in prices, as a balanced budget and the elim-
control lids
^ur experience in World War II
th^bookfof tL
so
ination
business
ultimately Economists, who have demanded
¥■
pa?*sexcess
and soreserves
tar tneyare
a!. s~:
to continue
u
tastic prices and
through
a blow-up
soon
the
as
ea^^id n^^h S^inn^ thPmUrSf that^onp8
filrannSh
tLflow
no
is
verv
banks and
n„J„?+„«««
ion
answer
re-
anv
w
and
III
_
l|W|l
"
in two possible ways: immediately
through black markets and fan-
of
all
to
Senator Byrd has accepted the
President's
Full, effective controls
nonessentials.
challenge
non-military
to
reduce
expenditures
to
a
HrtnKiP
-
pressures in the price-wage structure
wbjcb
are
self-generated
from the civilian part of the 19511952 budget of $71.6 billion.
If
f
r
an
civil
In^rea
an
e
duces the
the
in
ods,
g
excess money
possibly does both.
likely
supply
materially
or
that
the
of
re-
suppiy,
Since it
or
is
not
production
of
civilian goods can be enlarged at
this time, because of military de-
mands,
only hope lies in stiff
our
?
£ mp r price-supply
d
off dollars 4
that would probably be
fed
into
the
money
stream to
swell
the
emptions
should
inflation
on
be
The
gap.
ex-
personal income taxes
lowered with
that
every one
this
aim
will
pay
methods
all
conceivable
reducing the money
for
and
demand
econ-
omy
are
arbitrarily
interfered
with, through artificial ceilings on
prices and wages, production is
discouraged,
which
thp
spend
or
again
widens
curb
sures
the
now
lid
faces
inflation
the
built up
pres-
and prevent
frow-blowing off in
as
move
we
our
into the defense
source.
do, and should.
cit
spending, which'OUgfit' rRf be
stonned
if ;
nossible
However
,
Emergency was inflationary, because they result
declared
officially
the
Federal m higher prices to the consumer,
Reseiwe Board on October 11 anWage and price freezes were
nounced
Regulation X and Regulation W, to curb bank, real estate
and
consumer
pose
of Regulation X
home
building by
down
and
credit.
The
to reduce
is
requiring stiff
payments for all
old
new
financed
ones
pur-
houses
by
FHA
aid, and check the heavy flow of
bank credit into mortgages. Regulation W seeks to clamp down on
the
flow
credit
is
of
again
credit
banks.
our
to
for
installment
consumer
from
reduce
installment
aim
The
the
flow
items
of
into
the money stream and also to dis-
people from buying goods
in
which
essential
courage
at
present
metals
are
used.
These credit curb
the
Federal
regulations by
Reserve
Board
are
sound
anti-inflationary moves, bethey meet one of the criteria
of the premise I posited above—
namely, they attempt to reduce
cause
the
excess
money supply in cirHowever, they are only
culation.
feeble
toy
with
weapons
to reduce the
which
growing inflationary
gap.
the
inflation
situa-
tion, though I emphasize, not entirely. Therefore the government
must be brought into line in this
emergency and made to realize
that living on borrowed credit is
dangerous, unjust and uncalled
for. We should tell our Senators
that
want
we
them
to
support
Byrd and the others who
1
_____
to° W*h * *TV u"'ess a11
CUt.d0Wtt^lt4rflJ-<««ra!-,»®^s at hand for stopping
f ii 5 taxes and sales^taxes. ^
Even before the
created
ment
government
just as reBasically, the govern¬
sponsible.
..
Ahto tn^ deiense stopped if . poMible., bowmt,
program
unnecessarily
and
.,
ac-
to
wildly
in any way cause production to
a™ied forces are notorious.
are fighting for sound fiscal polAs a fb?al wprd on bow the at- icies in Washington,: They should
*ack on inflation may be effec- have our full support and we
tively waged, I want to say quite should let them know they have it.
cr=m
to
date
to do
or indirectly
production.
We are
all in this inflation situation. Let
civilian personnel, for which the Senator
.
IppraachTwRUe^kXawiy tht "'"skinfto^earry e^peLTt^^etS
oT hves win be
£Vufcksurveyof the
June 30
'Taxef s^nhon oH^lfie'regimented. with possible destructkms^ that have^ been taken
Ss MrSof our freedoms. That cost is
■tot to
help
and
increase
ft
.
applicatipHS.Vof
prices
all possible directly
to
wiuens
g p*
something
to
the
government.
Fourth: Price and wage control- Continued from page 13
Manufacturers'
and
retail
sales
J?,. p^s
buge economic and
taxes and higher excise taxes are P°bbcal power into the hands of
J 1^1^.
1
■
being considered to help finance politicians who of necessity use it ;
If f)9||||l#}£l|l>g <•4f}
on a pay-as-you-go basis
the $10. 1}-a P°btical way. If it is really
wliMifiWIiw IV
in mind:
down
the many discriminations this is done, he says the budget be lowered. So is our
and excePtions now embodied in can be balanced and a surplus can in the inflation and
W
unless somehow it provides
keep
close the economic gap and
from
#
an?ierntorthe
sound
privilege
our
cannot be established by any minimum and has announced cer?rouP of stabilizers, however wise, tain specific ways by which $9.1 us not forget that for a moment.
lmpersonal °r iust- There4 are J"1110",can. b,e and should be cut We all aid and abet it when we
tbe law Those situations are now be accumulated to begin a reducedanH
fi^f nf
giving the stabilizers much trouble tion on the Federal debt which is
talk,
and ihA
the use
of t
as we learn from the
newspapers, now something more
than $250
nrnhfem'
T-J—a Cdngr*;ss has ln~ which must be recognized, and billion—a quarter of a trillion of
wXthil h^LPnr^. anH Id
indiyidUal dI corpora: agreed to.
dollars.
His recommendations
h
it
?hrnLh Thf i
tlon lncome tafs+ and has passed
Third: Price Controls actually would cut the civilian budget
Sinking
lii roTr f a TeSS Pr°fl£S J3*' T*f-e ar£a imPede Production, rather than right in half, from $9.8 billion to
Thl prdble™
dlrem apprdachfl td resdlvlng th* increase it; therefore, they in- $4.9 billion, without, he says af°,f P?3?0? becaus®
crease inflation instead of pre- Acting the defense program, exfiati«n
proposed in- will not only help balance the fed- venting it. As soon as our free ceP* to cut down on its inflated
rmliticnl
seriously that it is
and our duty as citizens to support every sound measure and to
practice every reasonable restraint
dhe lnf!atl°n' wlueh
are rtUl to
"be admitted and used by the Ad_
,
oAn,
,
Fifth.^The present controls
|ng a private company to do the dence in private enterprise and
job that needs to be done.
perhaps an unwillingness to let
But now to leave New York private entenfise earn the profits
s^Vor ' manv°
p
has
been
buildinl
of
°uiiaing ot
years
dis^ussL
the St
as
o^TtE
Thera
the
to
Fnr
rmmtrv
a
.nrh
whfeh
L
a,
Law^nce Sea
tne bt. L-awrence bea- has been so marvelously devel' way There is not only the need oped by private business, it is mfor the canal system, but there is deed strange that we are unwillr
ministration.
,
HfAfffDCC
A iVJ|Avilw
ap-
pear to b<? the result of a hasty
decision by the government to
also
a
which
^bjs
real
need
could
be
important
for
the
power
ing to allow it to do for
developed along
what it did in the past.
river.
Here
is
today
us
a
a
ordered by Mr. Truman suddenly finally do something about the in- field which has been pioneered
on Jan. 26, after a long delay in flation situation, and quiet the by private industry. Private in-
A New Approach Needed
what
is
needed
nerhaos
is
a
sentetiles^nd'the
general nublfc
dustiy
now operates the genera- new approach, namely. Can this
bme preyiously, we recall, he had sentatives and the general
public. tors
at ^iagara Falls and at many service be nrovided
bv
nrivate
been saying repeatedly that there Critics also say that the control other places throughout the industrv9 If it can let nrivate inwas n0 inflation present in our orders were issued to take atten- country, yet in the long debates
dustrv
do
it *
It
is
indeed true
price-goods structure. The pur- tion away from the root of the upon the St. Lawrence waterway +hat in some of the fields menPose of the order is to hold the in^ia^on>
swollen budgets and there does not appear to have tioned above private enterprise
line by freezing prices and wages-deficits.
been one sjngle voice advocating wouid
have
difficulty
without
at certain levels. You are ail
Finally, prices are actually ris- that the seaway and power projchanges in some existing laws
familiar jvith the details of the ing undei Stabilization. Mir. John- ect be built with private funds, and without
order and the difficulties the ad-
son
ministrators
be held before mid-summer, and
in the meantime he says prices
objections
subsidized
will rise from 5 to 7%.
ated
tempting
to
meeting
are
administer
in
it
atwith
the swift changes, contradictory
orders and internal dissensions
that have aris^q^
%
w.e are concerned in this discussion witlkPHce and Wage Controls onlyVifi so far as they relate
to this question: Will They Check
^be Present Inflation and Curb
Future Inflation?
v
The outstanding' protagonist of
Price and wagfe controls was
Bernard Baruch.
He and his
group have from last June favored
all-out controls. They presented
the following program: a lid must
concedes that the line cannot
ter of fact they
each
week
Johnson
are
As
mat-
a
steadily rising
Finally,
now.
indicates
that
the
gives
the
That to
whole
cause
the
seaway
many
could
of
the
railroads to a
would be obvi-
the advantages
and
seaway
a
done,
be
of
such
my
mind,
away,
now
and will
of the
inflation
possibly giving some
privileges—privileges now given
pubiic corporations
Governor
Dewey has takeh a great step in
to
this
direction
obtained for mendations*
taxing those to whom it would
be of no direct advantage.
A final example will serve to
get more.
The basic
of
line
argument
getting them
were
the people of this country without
I suggest a proper correction to
the statement that the line could
be held only if the budget is balanced. We admit the higher taxes;
we are
such
Mr.
can be held after midsummer with
ihe help of a balanced budget and
higher taxes.
If
Railroad
lot, and that is atomic
our
energy.
Under the complete and
control
absolute
of the Federal
for
his
the
Long
which
he
recom-
Island
deserves
por the past two
government has greatly
encroached upon the field of private enterprise; directly, as with
great
praise>
indirectly through its
and
regulating
power
Now the stultifying effect
0£ sucb government interference
being felt. If private corporaRons are not permitted, or even
and
power
government this new and revolutionary source of power, which encouraged,
Potentialities literally to per-
with
decades
show how far we are away from
seizing opportunity to make pri- tVA,
vate industry expand and im- taxing
prove
for
as
to enter fields such
above we will not
mentioned
another
wwXtas"' ve£
the
tegafrasero
tacraased
quirements
curb
the
as
reserve
further
a
credit.
member
billion
re-
member
sys-
to the maximum allowed
up
by the law
to
6,900
the federal
banks of
tern
of the
in
This
banks
cash
to
measure
has
to
add
forced
find
$2
tion in its tracks, and thus"to hold
the line on the prices of a dimin-
too
!sh'nS.^PP1* "f "Vihan goods; to
continuance of farm parities and
keep defense costs within bounds;
to'their
eral
reserves
reserve
at the district fed-
'
banks;
-
The
Board
that this $2 billion of im-
assumes
pounded
member
ultimately'tie
up
bank
cash will
about $12 billion
of "potential
bank credit" for the
banking system as a whole.
If
effective, this would indeed take
a
large bite out of the
of
member
excess
re-
Those
'
who
oppose
price
subsidies; and the long list of
I
con-
said
that the
Chairman of the Atomic Energy £^t"wgh"'SS5Tand"college
gra(Juates unemployed.
insibtance upodn°the Commiton^oa"d a man denounced
previously
basic
in
this
'Zvate tadustrv to desLice of enei/v
^an believes that prf-
so-
to Prevent profiteering; and.4o .ciai legislation comprehended by
av0ld injustice to millions oLper- tthe**New Deal. Those are the
sof,<flxed inco^es or who do,,root causes against which the axe
^i^TL^essure groups to rep-, ^ be laid.
.
legal
clearIy;
talk
new
PPch
rf
a
If we believe that the Lancaster
weavers and the railroad firemen were wronS and
ress
in
efficiency is
that Prog"
desirable,
Lrlly ttoe then government should assist
than^th-B goibusiness in providing jobs for
be eovernment
are
iosing
great opportunity.
a
those
who
are
displaced—-new
for the infla-
From an analysis of these fac- ^pbs
with a rising standard of
trols, and apparently the number tion lies in fiscal and credit re- tors
one
would surmise that the livingThis can be done legally,
is increasing, raise serious ques- forms.
I
pointed out that the oeonle of this country have such legitimately and for the advantions about the possibility of wage tightening of credit by the Fed'
nnii+ipinn,;
ta§e of ahand price controls for stopping in- eral Reserve Board was a move commence m xneir pouuciaus
flation. They also question, the in the right direction, but that un- that they believe that the poll- ^
r Amer:can Airlines
desirability of this kind t)f-^^apA'^^iunately is not effective, be- ticians can produce miracles beproach, even if it should be workfOt^iuse the hands of the Board are
yond the power of private inJames A. Jackson, New York
--
cure
•
abl?- This is for
a number of very
baslc reasons.
tied
by
the
Treasury.
The
Ad-,
.
y
t
all
e
that
know
investment banker, was elected to
a
y;
Po,jr,.
. nirp„tnr- nf
Ameritheir loans and.- First: Price and wage controls abetting ^inflation,
by
insisting the politicians in this countiy are
discounts.
However, the desired are futile and may be downright -upon:,/a;.,* cheap
money
policy
regarded as supermen and can Airlines, Inc., March zi. ivir.
effect will probably be nullified dangerous. It is true that controls through low interest rates to supfor the
very
valid reason that Jackson is a former president of
by the member banks themselves, hold prices and wages in line, on Port the bond market:' It is also
mog^.
them are men of medi- the Continental Bank and Trust
Since they are loaded with gov- paper.
This is, however, only a aiding and abetting inflation by
ability
We all know Company, and was formerly viceernment securities, all they have delusion.
The power that gener- swollen budgets and deficit spendt.
i
th*
-NTa+innnl
Citv
to do is sell enough of them to the ates the inflation has not been ing.
that political enterprises have, president of the National City
Federal Reserve banks, who must
removed, because the inflationary
Senator Byrd is spearheading on the average, been conducted Bank with which he was asso^buy them, to recoup the $2 billion gap between prices and goods is the demand in Congress for re- wRb iegs
efficiency than those ciated from 1916 until 1935. He
serves
banks
from
ministration
is
thus
aiding
and
.,
which they make
.
,
•
u
.
the
tied up by raising the
requirements. So now the
Board
reserve
banks have met the
ditional
legal
$2 billion ad-
reserve
assessment
still present.
never
the
added
supply.
Price controls have
a
unit
The
of
goods to
inflation lurks
underground ready to spring forth
the high cost of governHe has been supported by
recommendations of a Com-
ducing
ment.
the
mittee of 400 Economists and 6,000
.
Dr;vate
-y
industry.
v
.
.
Rather than pride
ticians,
it
is the
'
,.
partner in the invest-
was once
a
monf
hnnirin? hnnsp of
nor po ~
lack of confi- Freres
& Company.
Lazard
32
(1356)
The Commercial and Financial
Chronicle
Continued from page 19
a
land and
wet
planting the crop, these
springs would have meant
that
the
not
priorities
warehouses is terrific; some report two out of
every
three of their orders bear the
symbol DO-97.
Some warehouse people now
say that they can handle only
10% of total business offered them.
They report inventories off
60% over a broad range of
products—much
know
ment, by making it possible to get
will
in
went
crop
late.
in
corn
more
permitted
the
nearly
to
time,
on
great
probably have to
without
being cut off by frost at
the tailend of the
growing season.
Numerous
other
illustrations
not
might
feedstul'fs
least
of
be
given
serves
as
but
this
one
introduced.
at
improvements
to
this
added
the
duction
food
factor
feed
or
livestock
crop
might
increase
in
also
food
made
No doubt there
that
will
the
to
views
war¬
another
this
may
be
period, is whether
again achieve a
war
country
can
by those
if
kinds ranging
wire and twine and
to
alyze
be
prepared
them. The
prices
trols,
governments,
will
if
we
the
to
go
this
in
the
have
essen¬
the
battle
be
for
to
con¬
attempt
we
economic
have to
bat
country
life
country from the national
become
should
if
or
tools
production
more
the
manage
to
more
and
the
become
weather
and
essentials
are
of
or
to
the
state
farmers
more
prepared to fight
their
essential
It
is
bit
a
who
shocking to all
interested
are
per¬
in
tial needs of farmers for full scale
production should not be met.
trolled
Continued
improvement of the diet for
six
past
1945
years,
during the
three
years
past
•
reach
137,000 units,
138,479 trucks
were
Business failures fell 23% in
years,
However, during all this time the
to
total
our
output was the same as in
1944, and three years when it was
slightly
below
the
1944
level.
population
been
the
of
increasing at
2\\a
million
country
a rate
persons
has
year
67.8 in 4939.
A
about
1.5%
annually. The only
the quality of the American
diet
has
food
been
maintained
exports
and
is
foreign
clined
over
than
years,
food
available
the,, domestic
market.
there has been
some
in
the
civilian
Meat
so,
deterioration
quality of the diet of
population
since
almost
10
our
1947.
pounds
More
to
a
Steel
would
at about the
1.5% annually which
an¬
production
than
will
1.5%
have
a
year
to
if
be
the
American diet is to be restored to
its 1947 level and
improved
beyond
that
point
even
would
be
Whatever amounts
have to have for
of
as
desirable.
food
we
military
and
purposes
other
war-time
needs would be additions to
these
amounts.
I
can
summarize
my
thinking only
I
believe
it
by'pointing
will
out that
difficult and
be
improbable that this total demand
can
be met unless
again every¬
thing works in favor of abundant
yields.
It
seems
improbable
weather will continue
the years
been
should
since
have
1937.
the
ill
that
as
immediately
has
Middle
good for
ahead as it
And
luck
if
to
people
or
not
ther, it
seems
we
to
would
have
Tonnage Scheduled
me
that
we
Iron
are
do
down 35%.
States.
were
All
con¬
major
Highest Level in
current total
was
55,478,000 kwh. below that of the
previous week, 854,724,000 kwh., or 14.3% above the total
output
for the week ended March
25, 1950, and 1,443,930,000 kwh. in
excess of the
output reported for the corresponding period two
year
ago.
Carloadings Reflect Further Slight Decline Below^
Previous Week
2.7%
week's
above
137,443
loadings
total
the
cars,
represented
increase
an
of
19.831
corresponding week in 1950, and
cars,
or
increase of
an
22.6% above the comparable period of 1949 when
reduced by labor troubles in the coal fields.
or
were
Output Cut by Return of Five-Day Week by
Chrysler Plants
Ford and Labor Trouble at
Combined motor vehicle production in the
United States and
Canada the past week,
according to "Ward's Automotive Reports,"
totaled
178,390 units, compared with the previous week's total of
(revised) units.
;./■.
;"
Responsible for the decline were wildcat strikes in
Chrysler
plants and resumption of normal five-day
operations by Ford
after 6-day output last
week, "Ward's" stated.
Total output for the current week was
made up of 137,644
cars and
31,243 trucks built in the United States and a total of
5,346 cars and 2,157 trucks built in Canada.
182,781
For
the
United
-States alone, total output was
168,8$7 units
against last week's revised total of 172,333
units, and in the like
week
of last year
133,897.
7,503 units, compared with
Canadian output in the week totaled
10,448 units a week ago.
Business Failures Recede From
High Level of Week Ago
Commercial and industrial failures
dipped to 170 in the week
March 22 from 185 in the
preceding week, according to
Dun &
Bradstreet, Inc. While casualties were down
ended
186
in
slightly from
the
similar
the computable
week
of
1950,
1949 total of 166.
they remained
level, failures were down 51%
in the comparable week of 1939.
Casualties
a
little
above
Continuing far below the
war
.
Age,"
national
not far behind in
metal-
booking
not include steel needed
In
surveying the steel market, we think it is
that reports from steel users
coincide so
highly significant
closely with reports from
steelmaking centers, states this
exception
reflect
In
sheets
products
listed
in
than
trade authority.
shortest supply
Almost without
by steel
users,
those
and
pre¬
from the 350 which occurred
involving liabilities of $5,000 or more declined to
preceding week and were also less numerous
as
a
measure
of
riches.
Some
auto
makers
for
bars, highlighting their fear that
will prove to be the Achilles
heel of their ambitious
program.
Several steel consumers have shifted their
have
alloy
bars
production
conversion
business in order to have
ingots made into bars instead of sheets.
Like other steel users
they are producing pell mell as far as
in May.
defense and
They
are
unable
to
plan
impact of heavy bookings
essential programs will begin to be felt
Steel orders for
repair maintenance and operation
bearing the
familiar DO-97 are
stretching the present priority system towards
the
breaking point.
Our immediate prediction that this order
might be the straw that broke the camel's
back as far as DO
on
the
141
other
concerns
hand,
failed in this size group.
took
place
having liabilities under $5,000,
among
which
rose
An
small
failures,
to
from
43
36
only 2 below last year's total.
industry and trade groups except wholesaling, which rose
22, had weekly decreases in mortality.
Both retail and
were
3
to
wholesale
mercial
trade
had
service
more
remained
below, the 1950 level.
about
In
failures than
the
same
Six of
a
and
year
ago,
while
construction
com¬
dipped
contrast, manufacturing casualties
one-half their number last
year.
1
were
;•
•
the nine
major geographic regions reported small de¬
during the week. However, business failures in
the Middle Atlantic States rose 14 to
74, the area's highest number
in eight weeks; slight increases also occurred in the
East South
in failures
creases
Central
than
and
a
lantic,
and
Mountain
ago
East
South
unchanged
the
1950
Pacific
States.
Casualties
were
more
in four regions—the New England,
year
mained
from
also
been
ago when
year
All
Central
in
level
the
were
and
Mountain
South
Atlantic.
reported
in
the
numerous
Middle At¬
States—and
The
East
they
re¬
largest
declines
North
Central
States.
Food Price Index Moves Lower ift-Latest Week
heavy DO and essential civilian booking by steel producers.
Detroit, bars (especially alloy) have replaced cold-rolled
trading sheets
a
increase,
On certain products the
percentage booked for essential pro¬
grams runs much higher.
On plates for example, one of the
largest companies has more than 70% of its
output booked for
essential programs while
another large company has 72%
so
booked.
Other products booked above the
average for essential
uses are structural
shapes, bars^ and hot-rolled sheets.
This ex¬
plains where all the steel is
going to and why terrific shortages
are
showing up in certain products.
of steel for
Fur¬
Pacific
to Rise to
they can go with existing supplies.
beyond the second quarter.
The full
suffer
war.
and
we
growing weather, it is
almost certain that the diet of
the
whether
February insolvencies
get
adverse
American
the
Atlantic
tonnage for essential programs. This does
by the industry for its own expansion.
nually, and the rate of increase in
greater
were
areas
steel producers,
according to "The
working weekly. Other steelmakers
ex¬
1.5%
same
of
Defense and essential civilian
programs now
account for
about 50% of all orders on the books
of two of the nation's largest
during the late 40's.
Thus, if diet quality is to be main¬
tained, our food output will have
increase at the
in
less
Industry's History
same
have
we
were
ago,
one-half of
the
electric
127 from 149 in the
perienced
food
in
we
of the country
involved
reported declines from a year ago and all but
New England, reported fewer failures than in the first month
of the year.
Monthly declines in non-metropolitan failures were
more marked than in the 25
largest cities.
should anticipate
continuing growth of population
to
than
indicate that for several
ahead
years
liabilities
one,
Question of Domestic Food Needs
seem
month
a
geographical
v
All the present evidence
with
centrated
per
capita, and the consumption of
dairy products is down about 40
pounds pier person.
month
same
of
Liquidations among retail establishments accounted for a
major portion of the month's decline, although failures in other
categories also decreased appreciably.
All industry and trade
groups sustained fewer casualties than a year
ago.
The sharpest
decline, 37%, occurred among manufacturers.
production, for example, has
declined
the
in the size
Declining 26% to $1-3,009,000, they
involving $25,000 to $100,000 in liabilities, which
-
for
Even
in
pared
thus
,,
occurred
any of the past three years.
Com¬
all size groups included fewer failures.
The sharpest drop from last
year's level occurred among casualties
that
relief
recent
more
decline also
February failures.
shipments of foodstuffs have de¬
making
there
year
a
or
way
In February of last
before, 685,
annual basis and
an
by the
Institute.
Auto
monthly failure rate
adjusts for seasonal fluctuation, decreased
two-year low of 26.3 failures per 10,000 listed enterprises.
This rate compared with 34.5 a
year ago, 4.1 in wartime 1945, and
of about
a
1.948, when
Dun's Failure Index, which extends the
to
distributed
energy
industry for the week ended March 24, 1951,
at
6,847,786,000 kwh., according to the Edison
The
February to 599, the lowest level
food
which
Industry
the highest figure since March,
assembled, it added.
for any month since
January, 1949.
were 811 casualties and in the
year
in
Electric
electrical
power
estimated
was
The
through
six
5
light and
of
Loadings of revenue freight for the week ended March
17,
1951, totaled 745,365 cars, according to the Association of American
Railroads, representing a decrease of 4,262 cars or 0.6% below the
preceding week.
The State of Trade and
1950, the total food production of
the country has not exceeded the
level attained in 1944. There have
been,
page
amount
economy.
the
American people, to find that for
the
from
the
Preceding Week
The
re¬
quirements in the free-for-all of
pressures that characterize a con¬
like increase in farm output?
sons
Electric Output Recedes From
High Level of
organizations must an¬
and anticipate their needs
surpluses nor have there
been in any recent years. The food
positiomof the United States could
it could
chemicals
farm
and
not
or
Scheduled steel output the current week
represents the high¬
on record for the steel
industry.
This week's operating
rate is equivalent to 2,069,000 tons of steel
ingots and castings for
the entire industry, compared to
2,021,000 a week ago. A month
ago the rate was 99.8% and production
yielded 1,995,000 tons; a
year ago it stood at
96.7% of the old capacity and amounted to
1,843,000 tons.
est level
nation.
many
containers
and
has
tight
serious,
our
challenge
the
this week
for the week
beginning March 26, 1951, based on the industry's
increased capacity of Jan. 1, compared to
a rate of
101.1% a week
ago, or an increase of 2.4 points.
job to be done. I have a feel¬
ing that as never before farmers
believe this country has large sur¬
pluses of food. As I see it, there
persons
the
of
announced
having 93% of the steelmaking capacity for the entire industry will be
103.5% of capacity
the
get
very
worst
machines
more
meet
needs
of
hardware
who
are
food
baling
and
exact opposite of the
an
held
adverse
the
before. But
I realize that this story adds up
to almost
on
to
at
still
will
Its
as
The American Iron and Steel
Institute
that the operating rate of steel
companies
essential
output
concerned, still stands, states "The Iron Age."
order
infinite number of production
from
increasingly tight farm
supply, American farmers
emphasize these as probably hav¬
ing
been most important.
The
question now, as we look ahead
what
ever
in
food
our
cannot
the
An
fully
more
farmers
again
production is to be expanded.
by
time increment in food output, but
for the present I would like to
farms
to
amounts,
supplies
have
need
available
are
on
more on tight items
plate, sheets and bars.
The revision of the warehouse
(M-6) is expected to help them when it
begins to take hold
in June.
But some April and
May quotas will average only about
40% of shipments last year.
*
r
\
such
crop production is based upon the
of
prospect for get¬
any
non-
use
of chemicals in the form of
fertilizers and pesticides. If those
chemicals go to war and are not
farms
of
an
labor
other fac¬
were
contributed
we
did in 1940,
accumulations
mechanized than
for
possible
do
with
pro¬
the decrease in horse numbers
farms.
tors
We
be
production
important
or
further,
as we
other
many
suffer. If machines and
especially
repair parts do not continue to
flow in large
volume,
be
do
ting them.
yields
made possible by the expansion of
machinery.
To
Still
have,
now
any
typical example
a
from
come
scientific improvements yet to
mature
crop
and
what the percentage figure
be but perhaps lfz of our
should
the
corn
and
impact
upon
petroleum
services, which makes them
extremely
vulnerable.
I
don't
have, as we did in 1940,
backlog of scientific
knowledge not yet in use. Further
improvements in food production
from new applications of science
The great speed of tractor
equip¬
and
chemicals
now
any
Thursday, March 29, 1951
.
American farmers have reached
farm
Adequate for Another War?
.
stage in their dependence
machines
WiU Our Food Supplies Be
.
Following
the
leveling-off
movement
of
a
week
the
ago,
wholesale food price index, compiled by Dun &
Bradstreet, Inc.,
$7.23 on March 20, from $7.27 on March 13.
It compares
with $5.79 on the like date a year
ago, or an increase of 24.9%.
fell to
Although down
the
current
1.1%
index
from
the
represents
recent
a
rise
high of $7.31
of
21.3%
Korean level of $5.96 recorded on June
20, 1950.
The index represents the sum total of the
of 31
foods
in
general
use,
on
above
price
Feb.
the
per
20,
pre-
pound
and its chief function is to show the
general trend of food prices at the wholesale level.
Wholesale Commodity Price Index Lifted to Slightly
Higher Level
The
Dun &
daily wholesale commodity price index, compiled by
Bradstreet, Inc., continued to move irregularly last week.
k
-
■
1
*
Following
.
,
Volume 173
,
Number 4998
.
.
.
,
The Commercial and Financial Chronicle
.
sharp dip at rriid-week,
the index turned upward
up from 323.65 a week,
previous, and; compared with 249.48 on the corresponding date
a
to close at 324.67
a
on
March 20.
year ago.
Grain markets continued
Prices
generally
were
This
prompted by continued favorable
due
largely
war news
to
liquidation
and talk of
a
possible
settlement of the Korean situation.
Private
forecasts
also had
of
than
larger
a
Winter wheat
expected
depressing effect on wheat prices.
The country
remained light.
Corn prices went sharply
lower at mid-week as offerings increased and demand, particularly
from Eastern distributors, fell off.
Oats were down moderately
for the week but displayed a firmer tone at the close.
Sales of
grain futures on the Chicago Board of Trade declined slightly
last week to a daily average of 35,000,000 bushels, from 35,700,000
the week previous, and compared with 29,500,000 in the same
crop
movement
a
of
corn
week last year.
Domestic
spotty and
at
the
for
both
Prices
hard
trended
soft
and
wheat
flours
was
slightly
ceilings.
There
in
easiness
some
was
futures
at
the close.
market turned stronger fol¬
lowing reports that producing countries were taking steps to raise
farm price
during the first full week of dealings in the staple since the Jan. 26
price freeze order.
Nearby futures were in demand at ceiling
prices, reflecting a tight supply situation. T'he more distant de¬
liveries were under pressure in the early part of the week due
to selling influenced by the possibility of a large
1951 crop,
beneficial rains over a large part of the belt, and talk of a pos¬
sible peace settlement in Korea.
Foreign inquiries were numer¬
ous but export sales were relatively
small in volume. Activity
in spot markets approached near-normal proportions.
Reported sales in the ten markets totalled 111,300 bales for
the week, compared with 95,100 bales reported in the corre¬
sponding week a year ago.
Domestic consumption of cotton during the short February
month, as estimated by the New York Cotton Exchange, equalled
the all-time high established in May, 1943, of 46,300 bales per
day, as against a daily rate of 42,500 bales in the preceding fiveweek period, and 37,600 bales in February a year ago.
Trade Volume Cut in Pre-Easter Buying by Bad Weather
nation's
The
prior week.
about the same amount of
Wednesday of last week as during
spent
consumers
in the period ended
on
rise
seasonal pre-Easter
A
forestalled
was
by
inclement weather and, in the opinion of some retailers in scat¬
tered
by the widespread public interest in the daily tele¬
the Senate Crime Investigating Committee hearings
in New York.
Total dollar sales were noticeably above the level
for the comparable week a year earlier, reports Dun & Bradstreet, Inc., in its current summary of trade.
areas,
vising
of
The aggregate
ison to
a
dollar volume
of clothing bought, in
increased moderately,
year ago,
There
compar¬
what
was
volume
The
perceptible rise
a
food
of
last
over-all
week;
for
demand
consumer
house-furnishings
dollar
volume
dipped
continued
to
some¬
be
sub¬
stantially above the level for the corresponding 1950 period.
Floor-coverings were especially popular in many localities, with
The interest in house¬
wares and similar small items rose very slightly.
There continued
to be a decreased demand for large appliances, some lines of
electrical goods, and television and radio sets.
Total retail dollar volume in* the period ended on Wednesday
light furniture
of
last week
also
frequently sought.
10 to 14%
to be from
estimated
was
Regional estimates varied from the
by these percentages:
ago.
New
South
can this be escaped. While the incidence on the individual
shareholder depends on his respective tax bracket (the above table
The Case of the Open-End Funds
incidence is
after
after
England and Northwest
+11
above
a
year
levels of a year ago
+11; East +6 to +10;
+14; Southwest +13 to
+7 to
+15; Midwest +10 to
+ 17 and Pacific Coast +15 to +19.
to
wholesale ordering during the
week; the total dollar volume of orders was moderately above
the level for the similar week in 1950.
The reluctance on the
There
was
slight
a
dip
in
part of many dealers to increase their orders was attributed to
existence of top-heavy inventories.
The number of buyers
the
attending Various wholesale markets declined sharply from the
levels of last week and a year ago.
the
Federal
on
a
country-wide basis, as taken
Board's
Reserve
index
for
the week ended
1951, advanced 11% from the like period of last year.
with an increase of 20% in the previous week and
18% for1 the four weeks ended March 17, 1951. For the year to
March 17,
This compared
date department
store sales registered an advance of 21%.
Retail trade in New York
last week failed
to come up to
Easter. Estimates
placed the gain in dollar volume at about 8%, at the most, above
the calendar week of last year, which, in turn, was about 4%
expectations, notwithstanding the imminence of
under 1949.
,
According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period of March 17,
1951
with
open-end funds,
simpler, but also present.
What
■
the amount of the tax
Supposing
buyer gets in
a
a
There is
possible offset to this situation if he sells his trust
price ($100 in the above exam¬
a
advanced 10% from the like
period of last year.
In the pre¬
ceding week an increase of 20% (revised) was registered above
the similar week of 1950.
For the. four wbeks ended March 17,
1951, an increase of 16% was recorded over
and for the year to date, volume advanced
period of last year.
that of a year ago,
20% from the like
could
be
that
his
lost
grand oppor¬
successful showdown
a
us.
world
rise in assets from $100 to $140, at $140-plus-load; and then
further $10 asset rise, there is capital gain distribution of
a
relax
War Outlook and Foreign Trade
profit. The high-bracket buyer will have to pay a tax of
$12.50 (25% of 50); which means he will be out of pocket $2.50
plus the load.
the
is
significance to
of. this
radical
traders
change in the war outlook? It is
that probably four-fifths of us in
this room this morning need to
shift our foreign trade planning
for the coming year to fit this new
This is
outlook.
don
profitable
the
on
business
overseas
assumption
that
going to be wrecked by
it's
all
war any¬
Rather it's time to
how.
to it
see
that
ple) and
for, sooner than many
believe, a new importance
is going to be attached to them,
both by us and by the officials
directing our defense planning.
can use this "loss" income-tax wise. But this might well
impracticable, and he would lose the amount of the load. 1'n
any event, the timing of the tax incidence is disadvantageously
left to the discretion of the fund managers,
Accent
on
rather than to him.
Income
Our conclusion from this discussion is that in the
closed-end
companies, the discount and
unrealized
of the
case
appreciation
hang on to
we
us
Actually, if
foreign trade
we
intelligently
the immediate future, most of
for
ciation which has been
previously built up, must be understood as
carrying correlated degrees of contingent penalty, as a quantita¬
approval of its evidencing of a good management
would
record.
As is the increasingly prevalent
tendency throughout
finance, taxation acts to penalize good management discrirninatorily.
what
It's not what
be
neither
March" 20.
the
And
real
had anticipated.
we
(1)
In the first place, most of
us^have the wrong
measure of the
of today's defense program.
We're still
from first page
plants.
had expected it
we
by
is
the real pro¬
our own
production
prospect for the next 18 months
scope
Continued
to recheck
need
us
to lay our
are
plans
duction outlook in
tive offset to the
our overseas
customers
of
factors should further accentuate the importance of
concentrating
on income derived from continued
holding; and that in the case of
both closed- and open-ends, the amount bf the unrealized
appre¬
*
time to aban¬
no
shares at the distribution-lowered
1942 to
thinking in terms of
1945. Then
build¬
we were
ing factories, machinery, and fin¬
ished
Defense Program No Bar to
munitions—ajl at once. We
building ourselves into the
largest naval power and
creating an emergency merchant
were
world's
High Level Export Trade
thousands of ships.
We
building radar and loran.
systems for ourselves and for all
fleet
of
were
longer ago than last hesitate a moment to bomb an
Yugoslavia would attacking enemy at the first sign our allies. We were building a
by now be attacked by Moscow's of assault.
greater air force than the world
even dreamed of up to 1942.
satellites, the Russians instead are
And
(4) Dissention inside the Com¬
all the time we were doing this,
discussing in Paris the terms on munist
camp has reached serious
which the Big-Four Powers might
we were
pouring machine tools,
proportions. Czechoslovakia,
reach their first important post¬
and planes, and munitions, and ex¬
threatening a Tito-like revolt, is
war agreement on Europe.
undergoing a bloody purge. So is panded food output to fronts as
remote and diverse as Britain, Af¬
The wily men in the Kremlin China.
Emergency measures have
are
unquestionably on the de¬ become necessary in Italy and rica, India, Australia, and China.
And—never overlook this impor¬
fensive. And as we look back this France to hold the
party in line.
predicted
no
November that
morning
it
shrewd
certain
is
moves
their
of
on
that
our
hopes for
quest:
five
part
are
was
the
in
our
huge defense
last
was
on
has
and
war
our
a
bitter but realistic respect for our
capacity
to
scale and
for
rearm
a
nerve-wracking winter
the
Kremlin, on which the
West can undoubtedly heap more
trouble if it starts
a
and mas¬
new
on
a
fabulous
with almost miraculous
nothing hangs
moves,
on
the minds of the
German
scientists
down the
Kremlin.
—
tucked
main
supplies of oil andv man¬
ganese are barely 1,500 miles from
our
vast
air bases in the eastern
Mediterranean, -and
barely
an
hour's
flight from the rapidlydeveloping new airdromes in Tur¬
key.
Despite the defense weak¬
(3)
of
don't
Western
overlook
velopment
of
Europe today,
gradual de¬
the
a
united
military
establishment in Western Europe
under
Stalin's
General
decision
Eisenhower.
even
allow
to
bare trickle leaves sufficient mod¬
ern
plant
that
can
capacity
match
a
to
do
a
job
single key fac¬
tory in the United States. A group
of
technical
workers
leaders
•
like
Pittsburgh,
those
and
skilled
who
Cleveland
or
make
Mil¬
waukee the great
production cen¬
they are would give
Stalin, if he had them solidly un¬
der his thumb, more genuine sat¬
isfaction
than
the
conquest of
ters
country
its prewar factory
Defense
Let's
faces
to
double-doubled
output.
that
Indo-China and the whole Malay
Peninsula. Hitler and the Japanese
warlords taught him how hollow
is a conquest of mere raw ma¬
terials if you lack the capacity to
today's preliminary Big Four con¬
ferences in Paris apparently ac¬ fabricate them fast into the ma¬
chines of war.
knowledges now that the United
States is sufficiently aroused and
These, then, are the five flashy
amply prepared in the air to re¬ but decisive moves which have so
duce
to
a
shambles
not
only dramatically and effectively
Western Europe's factories, if they changed the thinking of the Pen¬
were captured by a sudden Rus¬
tagon in the last few weeks. War
sian drive to the Atlantic, but also -all-out
war
with Russia—will
those in the Soviet Union. Any always be a possibility so long as
Production
realistic
get
today
duction job.
us
as
Job
about
what
defense pro¬
a
*
With
and
spines of the men in the
Never
forget:
their
addi¬
and
number
as
the magnitude and
efficiency of
American industry. It is exciting
for Stalin to have a corps of top¬
flight
frantically
-
that
the skilled work required
this
as
heavily
so
Politburo
almost
of
calling
forcb of
were
defense
a
12,000,000 men,
and
training replacements
new
away
in a laboratory, modern
anything the Russians
probably
far beyond
more
terrifying to the fanatical knew until a few years ago, and
imperialists in the Politburo—was turning out guided missiles and
our
shrewdly staged display of ultra-modern radar models, but
atomic power last month. Atomic it's another thing to be able to
abundance that can be spent so turn these models into mass pro¬
lavishly in mere tests cannot pos¬ duction when not even the shrink¬
sibly fail to send cold shudders ing of consumer goods output to a
Next
home
at
up
handle
(5) But behind all of these
speed.
(2)
difference—we
tant
tions
sive propaganda drive fast.
for Moscow
program,
con¬
It's been
the announcement
last December of
side
quick
a
...
.
(1) First
ness
Department store sales
from
the
of
case
and
we
table—it
has
tunity for
assuming the 25% maximum tax), it must be concluded generally
that there is a penalty involved through the future realization of
the past gains, and that hence the amount of such accumulated
appreciation should be scrutinized by the prospective investor.
mainly responsible for the blasting
i
in both the unit volume and
bought in the past week; dollar volume
was appreciably above a year ago, largely reflecting upward price
adjustment in some items.
Much of the increase was in meats,
poultry, fresh produce and confectionery, for which impending
festivities were deemed partly responsible.
dollar
profits,
supports.
Trading in lard increased with prices mostly steady. Market
receipts of live hogs were moderate last week; prices fluctuated
within very narrow limits.
Cattle prices were steady in moderate
trading.
Wooled lamb prices rose to new record highs, aided
by an acute scarcity of supplies.
Prices in spot cotton markets held at or near ceiling levels
the
ference
Stalin
the
If
33
play our cards
properly—both on the production
front and at the diplomatic con¬
Observations.
In
overconfident
drive.
our
be
After early weakness the coffee
money
become
the $50
demand
slow.
downward, reflecting
the recent weakness in the wheat market.
Export flour business
was very
quiet.
Spot cocoa offerings were small with prices
firm
Continued from page 5
was
irregular and uncertain last week.
lower
(1357)
we
tic
double the plant capacity
had when we started the fran¬
arms
program
setting out
than
now
of
1942
we're
1o build far less
.
quarter of what we built
in the last giant production pro¬
a
;
gram.
There's
great effort at all in
no
the naval field.
out
few
a
We
minor
rounding
are
holes
in
the
Navy's setup, and building a hun¬
dred fast cargo ships capable of
outrunning submarines. That's no
test of
capacity; it doesn't even
what should be normal
our
provide
peacetime employment in the per¬
manent shipbuilding yards of a
country that is today the world's
leading naval power.
And
as
far
as
munitions
are
concerned, let's adjust these per¬
spectives too.
When Korea was
attacked
last
June
we
had
in
storage in this country guns and
munitions equal to a full year's
supply measured at the maximum
rate of exoenditure during World
r.
^
doubts
he
strike back
held
that
fast must
we
would
have
been
dispelled last week by, General
warning that he wouldn't
Ike's
the
present fanatical crowd
trol the Politburo.
with six months ago,, the
now
con¬
But, in contrast
odds are
against it this year unless we
War II.
There
were
a
few gaps,
but
they were largely in weapons
developed since 1945.
And, ad¬
mittedly, we have been drawing
on
these
stockpiles
since last
But neither you nor I need
be confused about the compara¬
June.
tive outgo in Korea in 1950 and
on the two massive fronts in Eu¬
rope
and the Pacific in 1944 and
Continued
on
page
34
34
(1358)
The Commercial and Financial
Chronicle
the future.
or
Tomorrow's
.
Whyte
,.
on
should
:^^ly
overseas
the
All
.
be
4.U-
4-u
means
4.U
*
nQch
4.
that the out-
-i
i_i
W
normal export allocations"than in
-domestic civilian deliveries. ' On
as
t
call
.,;.
#
v
«-•
Can
possibly absorb this
we
mas-
far less
goods than they want
the immediate future,
articles sive output ai home when the
no doubt emergency
has passed?
The
feet, said that after a
there would, .be
in
they will be
on
side.
our
The Challenge to Exporters
The
well- decline,
a
challenge to
in this
us
^
room
...
dissertation about
be witnessed, bhould it occur,
new
The third is yet to
opportunities
will
[The
ap-
time
by example that certain pear;
opportunities
that
I
things have happened, ergo! hope I'll be able to point to.
certain other things will also
happen.
Continued from page 33
*
*
views
article do
show
expressed
not
coincide
Chronicle.
this
in
necessarily
at any
with
of
They
those
the
to/same'fractionol
civilian
turns
presented as
are
those of the author only.]
out
be
❖
*
such
chief
that
requires
search and close
re¬
application,
neither of which I have time
for.
And besides
whatever is
today, no matter how
pontifical, can be changed
overnight if certain develop¬
ments, now on the horizon,
written
Nor is
this
business audience
a
group
agers
likely
about
our
to
of
export
be
in
man-
the
ability—given
dark
today's
manufacturing facilities—to make
up in a few weeks for the supplies we've exhausted in
All
war.
minder
true
how
of
is
the
re¬
measure
the
need
you
to
today's
perspective of today's pro¬
problem.
Unless Stalin
Since
*
*
clear
lets
with
loose
cut warning
running it long enough to fill the
given here that the mar¬
gaps.
That's a job which can't
ket was in for a ten-point re¬
possibly lake an all-out effort for
action, nothing has happened very long in a country with the
of any significance.
The re¬ gigantic productive and organiza
was
action
came
followed.
market"
small
a
rally
heard all
were
The
for
were
many and varied.
bought them at the
highs the "reasons"
you
recent
were
consolation for the
actual losses, even
though you
poor
didn't
actually take them. If
you
bought them at last
week's lows, you haven't had
much
cheer
to
though
(2) But there is
perspective
on
#
We
total is that
a
mi¬
rally at this juncture,
though indicated, will not, in
my opinion, be significant. If
you ask the question, what
nor
would I consider
significant at
this point, I'd have to answer
that I don't know. Each
day's
If
the
tensions
get worse this
spring
therq,. will be no letup in this
buying.
But if, as looks likely
can
do to
of
year
fact
•
our
important
ago.
of
wave
output
far
of
the
from
the
more
pattern
con¬
a
organizalast
program, and more of the
to
are
outbreak—you
no
for
si0wdown
a
that
arms
Trade
(3) This leads
vital
factor
as
With
the
Members
New
York
San
York
Stock
Exchange
Curb Exchange
(Associate)
Francisco
Stock
Exchange
Chicago Board of Trade
14 Wall Street
time
the
COrtlandt
7-4150
Private Wires to
San
Ref.. @68% May 14 $450.00
Amer. Woolen @38% June 1
287.50
Armco Steel.. @45%
May 14 387.50
Mo.Kan.Tex.pf @67% May 21 675.00
Phillips Petr.. @81
June 8 487.50
Cities Service @88
May 26
Republic Steel @42
May 19 287.50
Aug. 1 387.50
May 8 287.50
Richfield Oil
South.
Teletype NY
Francisco—Santa
Barbara
Fresno—Santa Rosa
@34% June
Subject to prior sale
1-928
Monterey—Oakland—Sacramento
@52
Pacific @65
Schenley
Principal Offices
•
or
Explanatory pamphlet
1
550.00
200.00
price change
on
recuest
THOMAS. HAAB & BOTTS
Members Put & Calls Brokers & Dealers
Association, Inc.
50
Broadway, N. Y. 4, Tel. BO 9-8470
critical,
to
for
ad¬
our
ports.
In
peak
of
and
allies—all
defense
provide
them
plans
of
us
steel,
And
with
their
our
growing
own—are
tight spot.
production
our
tin,
rubber.
of
in the same
to
copper,
-
•
..
program
is
make
we can
materials
a
re-
keep
we
hoth
to
schedules
present
and goods will rapidly
men
become available for civilian
It
anything
the
sets
all-out
to
as
capacity bigger
country
has
known.
is
two
pro-
combination
facts—no
bring
barely
so
us
power
a
new
of
these
immediate
with
war
Russia, and a
carefully planned
to at least full
of the Russians in
and
year
a
me
half—which
today with
challenge.
Can
we—as far too
many of us
doing—afford to write off our
overseas
business,
or io
relegate
it to the indifferent place to which
it has already been reduced in
recent
Not
months by
if
firms?
many
can't
war,
we
tions
to. skimp
expect" other
than
any more
to
our
one
for
plant capacity.
our
year
was
chemical
depended
good
industries, but they
export markets to
absorb nearly $800,000,000 of their
massive
chemical
on
output.
This
willing to
Efforts
Must
Be
year
the
industry is boosting its
capacity 11% to handle the ab-
(1) Stalin is not going to pre¬
cipitate all-out war In the imme¬
diate future.
(2)
While
r
defense program
is the major obstacle in
Moscow's
our
way to world conquest, we can
fultill our present
program by the
end of 1952 and will then
desper¬
ately
need
absorb
export
markets
to
important part of out
expanded output.
an
(3) In
the interim 18 months
should demand of
Washington
and of our managements
equality
of treatment for
our
export as
we
as
domestic civilian
our
cus¬
tomers.
It requires no miracle of fore¬
sight to look two years into the
issue
see
which
in
detail the
sure
will
face
the
33d
Annual
Export Managers
GetTogether in the spring of 1953.
We
shall
still
have
Russian
a
problem because that is going to
be with us for a long time.
But
in the
perspective of 1953—backed
by an adequate and well-trained
Army, a supply of the urgent
be
•
to
weapons
turning
our
full
attention
our vast production
chine in full gear.
to
ma¬
with
friendly
Tightness,
Warned
but
have
us
that
neighbors,
blunt
find
and
kets
for
maintain overseas marf
at least $14 billion" of
v''
exports?-
;W*V.
forth-
already forethey must have
courage
terim
to fight for
allocation
persuasive
sound
a
policy,
in¬
power to sell it to your
equipment if they
whether
and
copper
are
to
iron
us
to increase
tin
of
and
Next week
ore.
they will arrive in force in
Washington to present their case,
By no group in this country more
than you export managers should
their
appeals
understood.
And
be
for
to
our
honest
and
gov-
really
you
are
Edwin A. Stephan With
Goodbody in Chicago
to
\
jus-
are
nothing
are
not
or
to',meet the foreign trade
challenge of 1951.
ready
realistic
appraisal of which claims
tified and which
otner
no
confident
more
an
readily
more
than you should
group
turn
be
more
less than political porkbarreling from south of the Rio Grande.
nor
it is
0ther
on
the claims of these and
good
that you
customers
overseas
and I need
to
base
our
strategy for initiating a reasoned
export policy for the next 18
months.
We
must
demand
official
co-
operation from Washington to
that
a
fair
share
of
our
see
non-
defense output is specifically allo-
cated to export. Whether or not all
of our foreign economic activities
are
soon
to
to be coordinated
demand
that
•
they
into
give
existing
us
(Special
spe¬
cific
support
by
providing
a
minimum basis for DO orders in
export.
tion, it is
our
we
win this coopera-
responsibility to sell
our own managements
cessity to make
no
on
the
A.
to
Financial
The
Stephan
CHICAGO, 111.
Stephan
with
Chronicle)
ne-
greater cuts in
has
—
become
Goodbody & Co.,
Adams
Street,
formerly
ment
And when
Edwin
a
unreason¬
of
-
the
and
managements, will determine
deliveries
.
The extent to which you
export
managers take away from these
certain minimum supplies of basic
their
v.
.
meetings beginning today the vi^
sion to see that far
ahead, the
Continued
Our Latin-American
agencies
a
supplies
us
are
we
able
Last
na-
daily require-
on
have
10%
clearly evident:
now
.
single agency, it is not
another
framed
factors—all
In this emergency, when we are V- Almost inevitably then*:we shall
n0|; actually engaged
in all-out be asking ourselves: How can we
shortage problem is
more than a
year, and especially not when, at
the end of that time, we shall
our
going to last little
added
mate-
raw
rials,
eminent
of
be
basic
keeping
long list of
a
sacrifice for them.
to
should
three
Rus¬
ports of
we
both
war
policy
emer¬
support it, and pos¬
sibly with the H-bomb—we shall
.within
practically all of
of
short-
to
succeed—and
it
must
succeed if we are to hold Stalin
in check—we must have more im¬
merits in order to send
12
This
future and
than
more
the
long-term
precipitated by the
around
well
January, they reached
all-time
an
both
the
,
flood of strategic im¬
a
can't build
require
plenish stockpiles and to build up
the minimum backlog which the
Pentagon thinks necessary to meet
any likely threat from Moscow,
With that backlog of equipment
the Plan then is to cut back to
mere maintenance levels.
This
means that by the end of 1952—if
are
Atlantic
New York 5, N. Y.
we
need
presents you and
Schwabacher & Co.
today's
defense
now
we
striking
Per 100 Shares
calls
get
fully set for action; -In that short
our
Pacific Coast Exchanges
the ^hird
to
me
plant capacity
today, there's not
the
of
What may soon become visible
to you and me in
what's been
PUT
Become
huge
have
we
defense effort
OPTIONS
though
turned
,
scare-
influencing
$60 billion program—will absorb
actually a relatively small slice of
today's capacity to produce.
on
look
can
this
Will
realize, and
(b) this time the job—large
SPECIAL
we
More Important '
a
ability
you
it sounds when discussed
be
range
Today's defense effort, on which
hangs
our
chances
for
peace,
If
this
and
which,
can
shorter
a
vantage.
buying.
than
as
Executed
of
Auction, and at
than
though
as
going t0 get through this year
ever
quick
now
is
sulphur
efficient
make
problem
us
to emulate,
possible.
of
as
two months, to look
ments
upset in reorienting ourselves to
defense building.
What's really
being proved is that (a) you have
retained
there
a
failed
months from the time that
first
temporary tailspin, output dropped
less than
1% in February and
that was actually due more to the
railroad 'igick strike" than to any
tion
But
all
is
enough
And, de¬
month ago, and were sup-
a
for
quickly
Here
they
the
defense
model
and
reduced
important
customers.
overseas
as
of
and
with
foreign trade planning.
>
that
old
a
going
of December and
a
the
allocation
for
on
now, the fear of immediate war
is waning—if it continues for even
indication that
ahead
supplies
busi¬
insisting
Even at that fantastic
bulk
spite
already
level
the
elements which, if added to¬
gether, make the outline of
Orders
leaders
$1 billion.
emer¬
January
war.
by
Moscow
one
the
transitions
Securities
precipitated
since
ahead
car,
boilers, road graders, motors and
compressors
before they would
normally be required.
that
market has within it certain
Pacific Coast
new
greatest supply of industrial goods
was
has
tele-
everyone
a
vision set, refrigerator, and even
a new house, so a lot of industrial
customers have
been
replacing
today pouring out the
are
as
are
reasonable
over-
our
posed to throw production into
*
bought.
Just
rushed to buy
second; factor
the current
gency and what it
supplies for export.
home market is
our
Foreign
a
which has helped to becloud
than
*
is that
a
automotive.
management
meet
gency
defense
on
the
to
and
sians last June.
make
to
elfort
than
shrewd
ness
for the last two months
on
term
best
long conscious of the importance
Production
either, tracts since Charlie Wilson was
position is more appointed hit the market more
your
sum
Tremendous
at
comfortable.
The
Our
over
reasons
capacity of the United States,
mg
The wails of "bear
Street.
this
and
going
duction
big—and there's
*
But
High Level Export Trade
1945.
something really
no sign of that—
our present job is actually limited
to restoring a production line and
materialize.
the
of exports to their well-run
like
column
a
is
in
upon
overall
production
*
reason
be—as
called
greater
The
to
shaped
that
^
*
Defense Program No Bar to
whatever
output
year
average since 1945
That's the kind of positive plan¬
ning that all of us need to do.
No single
industry in this country
will
I'm
outlining what the col¬
umn should
say. As you read
further you'll see that it says
nothing of the kind.
Vr~
policy
ond stage.
New
as
capacity>
Despite all the
sharp you've read, and will
ago,
go into details of the market
action of the past week and
If
for nlf
soon
the
now on the books for 1951
for another 17% boost in
ctnplrc
cash lor stocks.
given here a few weeks
still applies. This, in ef-
of the stock market. It should
the
!hf*
markets
It can't
-
a continue to
read money clation indicates
uthaatTwan1s to today should be clear.
rally, followed by another de- hasn t gone out ol style. Don t face no sucn prospect and is alOur country and our
business
mechanics, and/or science, cline. We are now in the sec- throw it away as if it had.
.ready organizing within, itself a need a new foreign trade
rounded
*
*
to normal defense demand.
purchases if any,
available
r
your major
*11.1
too
All this
line
By WALTER WHYTE=
This
,.
.
In the meantime, hold
;•
have your recent
nothing less than that basis of
hazy to distinguish, but keep
present emergency has passed.
equality of supply can we win
the next few days market funds liquid. Don't
Or, let's look at the automotive and hold the confidence of our
will clear the atmosphere.
let the bugaboo of inflation industry, in 1950, it had its big¬ overseas customers.
Once
we
's*
frighten you into exchanging Sest year. But expansion plans adopt it, even if we can deliver
been
Says-—
=
,
,
week
elements
Thursday, March 29, 1951
.
.
Perhaps
Markets
Walter
For the past
these
so
.
of
Chicago
in
the
First
and
Mr.
Edwin A.
associated
105
Stephan
trading
Securities
prior
West
was
depart¬
Co.
thereto
of
was
with Fred W. Fairman & Co. and
Kebbon,
McCormick
&
Co.
Number 4998
Volume 173
.
.
The Commercial and Financial Chronicle
.
Indications of Current
Business
AMERICAN IRON
''
operations (percent of capacity)
Indicated steel
The following statistical tabulations
V*
T-Tf. "1"
-:
or
month ended
on
Latest
Previous
Month
Year
Week
Week
Ago
Ago
1
103.5
—Apr.
1
2,069,000
101.1
that date,
ingots
castings
and
tons)
(net
BANK
1,995,000
FEDERAL
of
Month
1,843,000
PETROLEUM INSTITUTE:
oil
Crude
condensate
and
gallons each)
(bbls.
average
of
42
5,936,900
4,844,000
6,366,000
6,444,000
5,381,000
20,363,000
2,730,000
20,425,000
17,936,000
Mar. 17
20,341,000
2,628,000
2,904,000
2,129,000
Mar. 17
8,792,000
9,249,000
6,663,000
Dollar
output (bbls.)—_
1_—
_____Mar. 17
Stocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at
Mar. 17
9,473,000
9,499,000
9,430,000
9,209,000
8,014,000
Based
134,598,000
135,052,000
Crude
output
Kerosene
daily average
—
(bbls.)—
Mar. 17
_____Mar. 17
—
(bbls.)__
—-
distillate fuel oil output .(bbls.)
and
fuel
Residual
Mar. 17
__——_—_—
(bbls.)——
output
oil,
Gas,
stills
to
runs
______
_
oil
at—
139,056,000
13,084,000
44,966,000
12,802,000
13,314,000
13,592,000
46,022,000
49,420,000
43,102,000
Mar. 17
37,753,000
38,224,000
39,874,000
41,966,000
Mar. 17
(bbls.) at
oil, and distillate fuel oil
Residual fuel
(bbls.)
oil
at—
Imports
——
Exports
—1
Domestic
AMERICAN
freight
freight received from connections (number
loaded
(number
of
cars)
of
Mar. 17
745,365
749,627
740,557
725,534
cars)—_Mar. 17
708,312
725,881
717,538
670,642
ENGINEERING
CONSTRUCTION
ENGINEERING
NEWS-
New
—_____
Private construction
Public
[
____
_______
________
construction
—
$159,761,000
$220,851,000
$223,777,000
Mar. 22
59,776,000
139,746,000
140,562,000
—___Mar. 22
99,985,000
81,105,000
83,215,000
'
State
municipal
and
Federal
83,330,000
___
———;
——_—
OUTPUT
Bituminous
and
coal
lignite
Pennsylvania
anthracite
Beehive coke
(tons)—
Mar. 22
—
16,655,000
.
$177,330,000
111,584,000
69,065,000
61,169,000
65,746,000
49,363,000
12,040,000
22,046,000
16,383,000
__Mar. 17
9,870,000
*10,020,000
10,685,000
13,676,000
—Mar. 17
412,000
529,000
890,000
1,215,000
Mar. 17
149,800
*143,000
155,600
55,500
(tons)—
(tons)—
SALES
STORE
VALUATION
INC.—215
—
,____—_.
INDEX—FEDERAL
AVERAGE=100
DUN
—
(in
output
(COMMERCIAL
29,334,000
10,903,000
$453,275,000
$255,762,000
$23,134,600
——
Central
——1
—
Central
Total
City
-
;_
$8,163,678
91,078,455
92,900,340
42,372,682
46,473,404
59,139,485
50,007,866
84,502,453
91,441,307
35,068,782
53,699,662
76,003,349
14,176,924
22,958,102
12,216,683
9,393,887
69,009,112
72,908,041
54,111,051
$326,740,363
24.348,571
$446,881,401
51,032,885
$343,121,578
67,454,496
302,391,792
395,848,516
275,667,082
;__
—
—.
$21,763,494'
54,938,333
12,495,823
——
—_
States
United
York
New
—
;
__—
—
BUSINESS
FAILURES—DUN
13,780,829
BRADSTREET
&
INC.—Month of February:
Manufacturing number
107
— ___.
number
____^
number
—
—
Construction number
292
Mar. 17
—
*303
264
272
Commercial service number
6,903,264
6,847,786
Mar. 24
—
6,833,000
'.i
liabilities
DUN
INDUSTRIAL)
AND
BRAD-
&
Mar. 22
170
185
service
CommerciaJ
186
127
__
liabilities
Construction
STREET, INC.
_______
Manufacturing liabilities
Wholesale liabilities —
5,993,062
Retail
FAILURES
28,727,000
$470,234,000
■_——_
Paci.ic
SYS¬
RESERVE
:
kwh.)
000
15,687,000
25,000
&
—
—
Mountain
INSTITUTE:
ELECTRIC
Electric
2,329,000
CITIES—Month
Total number
EDISON
44,893,000
9,125,000
shipped between
and
Central
Retail
TEM— 1935-39
12,536,000
23,583,000
23,073,000
1,877,000
_■——
PERMIT
Who^siV
DEPARTMENT
$175,129,000
99,799,000
13,292,000
OF MINES):
S. BUREAU
(U.
$285,694,000
99,269,000
-
Outside of New York City
COAL
$303,996,000
__ _______—
Atlantic
South
Mar. 22
_____
—
$95,359,000
-
—
Atlantic
West
construction
S.
—
England —:
Middle
/
RECORD:
U.
$125,435,000
February:
East
Total
$123,224,000
BANK
.
goods stored
countries
BUILDING
South
CIVIL
Ago
exchange
on
Total
of
Revenue
Year
Month
OUT¬
RESERVE
Domestic warehouse credits
RAILROADS:
Revenue
Previous
Month
SYSTEM—
ACCEPTANCES
shipments
BRADSTREET,
ASSOCIATION OF
of that date;
OF
(in thousands)—
DOLLAR
foreign
140,671.000
Mar. 17
,
(bbls.)
Kerosene
Gas,
are as
Latest
OF NEW YORK—As of Feb. 28:
6,047,150
6,042,750
116,372,000
Gasoline
GOVERNORS
STANDING—FEDERAL
output-r-daily
—-
OF
RESERVE
January
BANKERS'
AMERICAN
of quotations,
cases
DEBITS—BOARD
THE
2,021,000
in
or,
either for the
are
'
96.7
99.8
li.quiva.ent to—
Steel
.
.
Dates shown in first column
month available.
or
35
production and other figures for the
cover
-
week
Apr.
.
-<
•
week
Activity
STEEL INSTITUTE:
AND
(1359)
liabilities—
132
170
69
73
100
304
410
399
60
97
73
59
63
69
599
775
811
$6,134,000
$5,175,000
$7,905,000
1,891,000
2,259,000
4,166,000
4,357,000
10,376,000
2,228,000
2,393,000
1,399,000
1,482,000
6,386,000
1,824,000
1,875,000
$16,009,000
$21,685,000
$22,156,000
$34,000
"$33,000
$28,800
'
liabilities
Total
Finished
steel
(per lb.)
Pig iron
(per
gross
ton)_
I
———__—
Scrap steel (per gross ton)
—
Mar. 20
4.131C
4.131c
4.131c
Mar. 20
$52.60
$52.69
$52.69
$46.38
Mar. 20
$43.00
$43.00
$43.00
$28.42
BUSINESS
3.837c
INVENTORIES,
(millions
M.
&
Lead
tin
(New
York)
Lead
.(St. Louis)
Ziric
(East St.
—
York)
(New
at—
_
;.
at
.——
at
-
24.200c
24.200c
.Mar. 21
—
at
Louis)
OF
COM¬
—
______
________:
*
——
QUOTATIONS):
J.
Electrolytic copper—
Domestic refinery at
Export refinery at
Straits
DEPT.
dollars):
of
Manufacturing
(E.
;
—
MERCE NEW SERIES—Month of December
,
Wholesale
PRICES
METAL
—
PRICES:
AGE COMPOSITE
IRON
24.200c
18.200c
.Mar. 21
24.425c
24.425c
24.425c
18.425C
.Mar. 21
134.000c
134.000c
183.000c
77.125C
.Mar. 21
17.000c
17.000c
17.000c
10.500c
.Mar. 21
16.800C
16.800c
16.800c
10.300c
.Mar. 21
17,500c
17,500c
17.500c
10.000c
Total
DIVIDENDS
U.
BY
PUBLICLY
—
CORPORATIONS
S.
PARTMENT
December
DAILY
U.
S.
AVERAGES:
113.50
115.63
116.41
117.00
119.20
121.46
Maiv 27
115.82
116.22
118.20
119.82
Mar. 27
112.37
112.56
115.04
115.82
—.
108.34
108.52
110.15
108.88
110.15
110.52
112.75
111.62
Mac. 27
113.31
113.50
115.43
117.40
Mar. 27
116.22
110.61
118.60
120.22
Mar. 27
2.53
2.52
Mar. 27
—
Group—
Industrials Group
;
Mar. 27
2.
Group
Utilities
103.18
101.14
113.12
116.61
1
____
Public
99.61
.
Mar. 27
Mar. 27
—
A&—II"I_IIIII—I ~_
Baa
99.53
Mar. 27
corporate
Railroad
COKE
Bonds
Government
Average
,
v
-I
U.
—
S.
Government
(BUEAU
Month
—
Average corporate
Mar. 27
.—_——
3.00
2.98
2.82
2.80
2.26
2.41
2.83
2.87
'
Mar. 27 '
V
coke
Oven
MINES)—Month
OF
(net
Beehive coke
of
2.86-
Mar. 27
3.04
Mai. 27
2.84
2.74
2.66
3.03
2.90
2.86
3.25
3.16
3.23
'
Mar, 27
.—
Railroad
Group.
Industrials Group
-
3.02
3.08
2.88
2.78
2.84
2.82
2.72
2.64
526.2
523.2
528.2
357.7
Mar. 27
Mar. 27
—
:
3.14
3.16
2.9T
—-
—
■>-
2.93
Mar. 27
Mar. 27
Group
Utilities
Public
3.26
:
$60,300
$51,300
—
tons)
—;
(net tons)
end of month
Oven coke stocks -ta
*
$2,141,800
$189,600
$1,482,100
Jan.:
(net tons i
6,769,376
6,606,464
5,482,034
6,057,833
5,980,557
5,357,740
711,543
625,907
124,294
1,100,157
1,106.,208
1,280,984
CONSUMER CREDIT OUTSTANDING—BOARD
GOVERNORS
OF
SYSTEM
SERVE
FEDERAL
THE
OF
Estimated
—
RE¬
short-term
of Jan. 31:
Sale
credit
credit
$19,°03
*$20,102
$16.3«8
—-—
13,255
*13,467
10,836
—
7,691
*7,909
6,174
4,056
*4,126
3.179
3,635
*3,783
2,995
—
Automobile
_______
2.58
2.69
$61,500
cf
omitted).
(net tons)
Production
Instalment
—_.—
13,700
DE¬
Total consumer credit-—
S.
U.
9,00d
*16,800
REPORTED
COMMERCE
OF
(000's
credit in millions as
AVERAGES:
YIELD .DAILY
Bonds
MOODY'S BOND
*10,500
16,800
1
CASH
'
MOODY'S BOND PRICES
10,800
credit
Loan
—
Noninstalment credit
Charge
Single
—
5,564
*5,558
4,662
6,648
*6,635
*4,239
5,532
4,233
accounts _—
payment loans
Service credit
3,506
1,353
*1,334
1,027
1,062
*1,062
999
340.6
*360.3
284.8
CONSUMER PURCHASES OF COMMODITIES-
PAPERBOARD
NATIONAL
Orders
INDEX
COMMODITY
MOODY'S
received
(tons)
COTTON
I
——
Percentage of activity
Unfilled orders (tons) at
Mar. 17
245,852
254,539
215,033
194,402
Mar. 17
250,490
249,472
243,154
205,932
Mar. 17
106
106
105
92
Mar. 17
751,036
759.490
718,490
382,006
\r-
AVERAGE=160
———Mar. 23
——
COTTON
154.6
153.3
154.7
LINTERS
AND
MERCE
121.9
(DEPT.
linters)
of
report
—
DEPT.
—
OF
TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODD-
LOT
DEALERS
SPECIALISTS
AND
EXCHANGE—SECURITIES
month
EXCHANGE
THE
N.
2,253,240
1,826,792
5,636,221
109,854
116,031
of March 3
328,067
299,494
9,403,001
128,272
343,158
131,445
121,541
65,630
20,885,000
20,900,000
20,413,000
of orders
Number
Number of
Mar. 10
shares
value
197
237
*166
Mar. 10
————.—
Mar
—
16
33,3.89
33,069
44,437
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'
short
sales—;—
Customers'
other
sales—______
Number of shares—Total
short
Customers'
971,729
1,532,109
830,839
$42,$41,308
$57,290,522
$29,257,620
ERAL
i
sales——
'_
sales
Mar. 10
30,559
31,448
42,365
27,676
-
Mar. 10
240
449
280
213
-Mar. 10
30,219
30,999
42,085
27,463
840,359
863,406
1,209,250
776,288
12,418
9,850
8,235
—Mar. 10
—Mar. 10
■
sales-——
other
-
-Mar, 10
827,941
16,107
847,299
1,199,400
768,053
-Mar. 10
$34,100,837
$35,253,907
$50,604,713
$28,150,205
sales
—1—
—
-Mar. 10
260,730
242,870
347,300
258,730
266,730
242,870
347,300
-Mar. 10
,f
-Mar. 10
Round-lot
258,730
BANK
-Mar. 10
355,510
366,450
459,750
278,640
N.
100—Month
(average monthly),
Sales
(average daily),
Y.
of
FED¬
FEDERAL
1935-1939
—
February:
unadjusted—
unadjusted—_______
(average daily), seasonally adjusted-—
Sales
Stocks, unadjusted
Stocks, seasonally adjusted
CROP
IN
PLANTING
REPORTING
FOR
Other
PRICES NEW SERIES
1926=100:
All
U.
S.
DEPT.
OF
i—
___
—
—
Livestock
—
—
—
—
—
All
commodities
other
than
farm
and
foe
Textile
Fuel
products
and lighting
Metals
and
Building
metal
materials
—
-
-
..
•Revised
figure. ^Includes 468,000 bairels of foreign crude
183.9
183.4
183.3
152.4
Mar
204^6
•203.3
203.4
158.7
20
Mar. 20
187.0
189.1
192.3
Mar, 20
272.9
268.4
270.9
196.6
Mar. 20
J37.9
*187.8
189.5
155.1
Mar. 20
273.6
272.0
274.3
211.9
Mar. 20
171.1
•171.7
170.9
146,2
164.6
Sorghums for
84,370
18,509
__________—_K__.—
5,695
44,191
6.642
—
—j,——__________—
all
purposes—_____
Potatoes
Sweet
potatoes
——_____
dry edible—
Mai. 20
185.1
185.1
181.8
137.2
Mar. 20
139.0
139.0
137.8
131.5
Mar. 20
189.3
189.3
188.7
168.5
Mar. 20
227.7
227.2
226.7
194.0
Mar. 20
145.7
146.9
147.7
116.7
runs
'
Soybeans
—;
—
—
Tobacco
Beans,
•Revised.
2,814
11,413
3,235
3,921
4,064
1,931
1,620
12,540
16,587
1,590
1,866
444
573
1,745
1,594
1,632
—
——
— _—
—'ri.—-
1,664
-
r—
——
—
Srynu——
Sugar beets
*225
2,894
18,956
Peas, dry field
._
-
materials
products
Mar. 20
273
.
21,850
LABOR—
—.—,—
products
*218
85,694
______
——____
——.
Flaxseed
commodities
Farm
—
i
240
1:
Oats
WHOLESALE
*222
273
1949 — U. S.
ACREAGES
wheat
spring
233
291
—
of March
Corn, all
spring
*184
218
263
281
>.
BOAR.D
THOUSANDS—As
Durum
Number of shares—
OF
Sales
All
purchases by dealers—
DISTRICT,
RESERVE
PROSPECTIVE
Number of shares—Total sales—
SALES—SECOND
STORE
DEPARTMENT
AVERAGE=
.__
Round-lot sales by dealers—
Short
as
28,120
958,212
$41,738,785
RSERVE
Customers'
establishments
public storage as of March 3______
Cotton spindles active as of March 3—
In
COMMISSION:
739,482
2,336,732
4,634,507
In consumng
STOCK
Y.
1,040,891
894,602
February—
of
public storage as of March 3——
Linters—Consumed month of February—___
dealers (customers' purchases)—
Odd-lot sales by
Dollar
ON
15,908,591
consuming establishments as of March 3
In
In
STOCK
9,899,417
COM¬
BALES:
RUNNING
—
COMMERCE):
OF
(exclusive
?0____
bales
of March
Lint—Consumed
AND DRUG REPORTER PRICE INDEX—1926-36
OIL, PAINT
as
February
of
GINNING
Running
<1935-1939=
INC.
BRADSTREET,
&
100)—Month
ASSOCIATION:
(tons)
'
Production
DUN
244
240
13,772
14,704
941
1,033
2,614
2,752
75,656
75,741
887
1,013
4:.
36
(1360)
The Commercial.and Financial Chronicle
.
Continued
from
12
page
What Should Be Our International
Economic
Policy?
~
nessed
well
so
in
..
.
„
Detroit,
Organization
are
I
confident
am
that
rapid
Eui op
v™
a
-
Qrlwilf iltinnis,
the other non-Soviet natio
re¬
have
to
it
ic
necessary
will
operation joint allocation boards,
eliminating thereby the
within
short
period —
create superiority of political, eco¬
nomic and military strength on
our
part. Such a state of condi¬
tions
would
a
the
make
effects ot tree
ary
tition
for
trolled
of
rush
posing severe st
vasion
omy
World
must
forts
for
years
on
the
next
two
its
our
ef¬
It is
process
apparent.
Resources
otherwise
be
would
The
current
to
nels
possible,
living
of
have been transferred to military
needs.
The
lives
businessman
in
mitted
the
to
free
do
all
in
his
is
,
com¬
power
be
the
of
to
materials
and
been
and
that
.
,
,
-
+,
„
hp
v^,,•
„
Then
r
.
united
States
that
to
future
the
over
should
date
a program
-
and
possibility
menf
and
resources
will
be
to utilize
in such
a
that would
avaiiable
the expanded
way
to
that they
and
more
people
more
of
hold
o
Lisbon- Portugal, from June 10
throuSh ,.16'. th.e ™0j\dh b"sine?s
community, including
the Amen-
must
rpinctitntpri
Western
In
in
the
of
armor
World's
the United
economic
States
the
constant and remarkable
In
ment.
been
Europe
true.
living
trend
to
improve¬
this
There
for
reasons
this,
has
tem.
un¬
for
a
made
•
International
not
Socialism
and
Private
As
We
the
the
em¬
must
and
for
our
,
long-range for¬
be
an
expansion
in
the
invest¬
ment of
private companies abroad.
American companies that
Many
have
invested in subsidiaries and
affiliates
abroad
have
had
satis¬
factory experience with the ex¬
ception of transferring earnings
to the United States.
Naturally,
must do all in our power to
convince the government that the
obstacles to foreign
we
investments*
double
as
taxation,
convertibility and other
controls,
be
corrected
lack
of
similar
that
so
American business will have in¬
centives to take its dollars abroad.
Private investment
going abroad
a
desirable way to
is
this
economies and raise the standards
of living of
foreign countries. It
is a most effective
countermove
state
distinguish
Capitalism
the
of
I think there
of
be¬
tween Capitalism which works for
few
part of
Expansion
Investment
eign economic policy, there should
Many European businessmen
works
bargain
emergency would be
after
the
emergency
benefit
many
including
dislike competition.
is great danger in
the
we
where-the. gains
over.
such
are
phasis which European Capitalism
places on an outmoded cartel sys¬
mind.
in
in
One of the grav¬
standards and working conditions
of the average citizen have shown
of
assist jn furthering economic
gr0wth and apply the gains made
tbe COmmon good. This would
enable us to minimize
unemploy-
Capitalism.
policy is the persisting, time-worn
attitude of European Capitalism.
in
look
cannot be said for Euro¬
weaknesses
the
£0
it is imperative
iompetition
est
I
businessman
of
is
to:
Amer-
as
have
same
pean
ex_
unemployment?
every
formulating
raw
the
man-
increased
haye tQ cut back and
during, the
what the few enjoy.
Capitalism of 50 years
ago
can
hardly
be
recognized
when
compared with American
Capitalism of today. Unhappily,
WhafwiS
us
it,
industry
of national prosperity is to
idea that the many
defense
determined,
that
the
current
And the Latin
are
derstand
exem¬
raw material pro¬
the
icans
position
by
learned
for
program;-
American
nati0n
an
that free market
utilizing the
facilities for the re¬
in
haye
ahead
assigned, wherever
the
responsibility
to
emergency
assist his country in
t
inteSonaf a^ange- At the forthcoming Congress
mini like th?s should b™n- '"Sthlch
Commerce, which SfflS
will be held
Alsoy
(wherever he
world)
sessions
lu
then, I might ask, with the
p0nder
tial, however, that private chan-
and
standards
a
interna-
commodity
groups
in
Washington are one way of controlling this weakness. It is essen-
civil consumption and investment
in the promotion of freer trade
raising
of
material
that
available
tbe
direction
particular
Detroit—has
secret
ourselves to the fear of de_
think
tional allocation and procurement
of materials is now being made.
/
of rearmament,
in
production,
prices and trade already have be¬
come
the
do
pression
g
gratifying to know that
in
f
,
pose
own.
start
resources
distortions
some
of some countries,
in
cannot
.
uncon-
,
three
or
harnessing its
the
Western
concentrate
for defense.
In
The
in
we have reached
balance of power, with rearma-
resources
^r amaterials
i > imns o
plified
the Per*od when
p
an
Beyond
eliminate the
'attack
P."
such
Look
this—trips and private
American Capitalism—as
are asking-;ther Latin Arner-*
duction
exchanges of all sorts."
Emergency
we
stop, look and listen before em¬
barking on other diversionary in¬
movements.
;
we
The
materia
scarce
effects
price
Kremlin
in
Must
for
It behooves businessmen to look
beyond tbjs peri0d of emergency,
permanent
armament of the non-Soviet world
—
our
economic
v
made
short-range foreign
policy.
up
Wer
;
icans to expand
ready-
make
Business
for
carrying the production effort.
isi, a situation ripe for a Hoover ternational
conventions—organi¬
Commission approach."• \
zations such as the-International
These then are some factors that Chamber of Commerce are
Thursday March 29/1951 *
which
The
many.
trend
of
fortify the
to
the conditions that breed
pov¬
erty and oppression. Private for¬
eign investment would also re¬
European Capitalism has been
away from a sense of responsibil¬ lieve the taxpayer of the burden
ity
to the community. I am sure of providing through his govern¬
Washington is responsible
In our defense efforts we will un¬
the morale of people of
ment
for our own international allocadirect assistance and grants
Europe
doubtedly have to endure mental
munity.
We hope that the De- would
rise if they could identify to other nations.
When private
tion-procurement activities. Aboqt tr0it
and
business group will be most
physical strain for an -in¬
10 agencies and departments are
European Capitalism with a posi¬ capital goes abroad it brings with
definite period if we are to main¬
helpful in looking ahead along tive rather
in the picture despite the fact that
than a negative policy. it American know-how and man¬
tain our freedom and economic
these lines when the United States
the
first
order
issued
by Mr.
Today many ardent anti-Com¬ agerial skill and thus directly,
liberties. Without freedoms the
Council, together with some of
Charles
E.
Wilson
as
Defense
munists abroad are suspicious of contributes to the welfare of the
heart
will
have
been
removed
your outstanding groups here in
Mobilizer
created
an
recipient nations.
inter-dethe motives of American
from our defense.
Capital¬
Detroit, will have a meeting
partmental Committee on Foreign in
ism. By explaining the true con¬
But we must be realistic: Con-.,
The free world cannot go on
you'r city on May 3
An| tribution of
Supplies and Requirements under 0f
American Capitalism gress should provide much of the
course)
we
sincerely hope that
focusing
exclusively
on
being the
to the world in terms of the
Chairmanship of ECA Admin- Detroit will be
gains necessary encouragement by
represented
in
strong enough to wipe out aggres¬ istrator William C.
Foster.
of
the individual
working men passing legislation deferring tax¬
Lisbon. It seems to us that these
sion before it actually occurs. At
and women here in Detroit and ation of earnings on
The United States Government
foreign activ¬
some point, whenever the Kremlin
meetings provide a tremendous
should
immediately clarify the challenge to the businessman to in other great industrial centers, ities of American companies until
will decide, there has to come a
I am sure we as businessmen will they are
raw
material
situation
brought home. At the
so,
that preserve a competitive enterprise
break in the international tension.
there will be an end to the kind
develop our most successful same time bilateral treaties must
system
which
At some point the success of the
otherwise
might
of vacuum that seems to persist
be concluded to assure the trans¬
weapon
against
Soviet
falter.
propagan¬
free world will be measured not
da. This should be a
in
Washington. Instead
of the
major com¬ fer of earnings to corporations in
j£ £he free nati0ns of the world
by self-preservation efforts, but
ponent of our foreign economic capital exporting countries and to
many over-lapping agencies in the
do no£ succeed in
by our ability to expand economic
avoiding eco- policy.
field now, ther.e should
eliminate double taxation.
be one
nomic maladjustments
capacity to such an extent that we
if they
government
We must win people as well as
You will hear more about such
can offer to both our own
people
agency-Hpossibly
ECA
fad
£0
establish an environment
-—in sole charge of the
temporary jn wbich
diplomatic and military battles if programs from the International
and
the
people in the under¬
communities
can
adallocation and procurement of raw
we
hope to stop
vance
Communism. Chamber of Commerce and the
developed areas increased stand¬
materially and spiritually
productive
armament
of the
'
.
There
World.
Western
is
can
representatives, will discuss
aspects of such a program for action ; by the world business com-
,
still
puzzle
a
as
to
who in
—
•
ards,
that
in
both material
dictatorships of
materials.
and
One
are
of
position to provide.
no
In the knowledge of this im¬
portant factor, it stands to reason
that
the
free
world
—there is
moral,
kind
any
must
facilities, its economic strength, its
scientific knowledge. So we there¬
fore come to objective number
two:
the
most
crying needs
the moment is the elimination
of
the
by
a
sources
and
External
protective curtain of isolation be¬
agency. Headed by a man of out-
for many vital commodities
standing ability with public acceptance, this agency should have
the equivalent of Cabinet status,
cannot withdraw
cause
behind
the United States is dependent on
external resources. Of the 15 basic
minerals, the United States is
relatively self-sufficient in only
six: coal, petroleum,
iron, sulphur,
phosphate and potash. In the case
of iron, various
ferro-alloys must
be imported before steel can be
made. The automobile
industry in
Detroit is well
that
100% of
of the fact
cordage
aware
tin,
fibers
chrome
imported.
are
Ninety-two percent of
ganese
sten
and
and
and
our
man¬
cobalt, 73% of tung¬
34%
of
our
yearly
re¬
quirements for lead are mined
outside of the United States.
Our
foreign economic policy must be
based on a full realization of these
facts. In order to make their econ¬
omies most productive, the coun¬
tries
an
of
of the
Western
World
need
adequate and equitable supply
required raw materials together
with
a
flow of essential .consumer
goods.
To
of
assure
strategic
countries
in
First, there was the Gordon
Gray report, rather out-dated at
this time because it
an
the
adequate
supply
materials for all
North
welcomed
even
Com-
relief from the misery,
corruption of his
in time that the
hollow.
take
.
Collectivism
back
the
able to him.
land
will
made
avail-
The cancellation
of
in the government).
ups
nally,
pressive taxes.
Communism
will
Communism has
,
never yet
fore, before the
of Communism
,
cancerous growth
can spread,
.
reform
traditional
modes
of
And fi-
production and distribution and
increase sharply the productivity
of men and machines. This is one
xvay *°. meet threats of foreign
report, aggression and international col-
Advisory
Board.
(This
though its other recommendations
careful
study
men
should
endorse
qualifiedly correct
for
-*■
before
determine whether
a
business-
them
on
we
is
un-
the demand
The
Hoover
Commission
oovepxComm ssion
in
in
many other fimds pas pointed out
the waste and
stupid duplication of much
and
of our
administrative structure m
in Washaamimsiraiivestructuie
wash-
Atlantic lngton
of
and
abroad.
Here,
the
that direction
in
the
foreign economic policy,
votion
with
to
far
a
in
and courage
fanatical
a
We
cause.
can
effective
more
an
reply
boldness
is
significant
speaking to
that
in
work
you
that
the
on
Washington
I
day
foreign
how
are
on,
the
major steps
in
opening their deliber¬
material
raw
resources
Hemisphere
other
among
can
Point three
on
of
things,
and
Summary
In
the
Western
stepped up.
the agenda of the
sessions is the following:
(b)
production and distribution
products in short supply and
utilization of necessary services
to
meet
requirements
of
the
American Republics and measures
of
facilitate in
so
far
as
possible
the carrying out. of
programs
economic development."
As
we
understand
of
it, the Latin
is
magazine,
m
its February,
195^' issue' made Quite an essen~
tial point in this respect. "United
States
fied
business is
group
in
all
the
the
best-qualiworld
getting the American idea
for
across
Latin American
we
production?
Will
(Latin Americans) be able to
obtain
sufficient
For¬
specific
at
recom¬
governments
and
and
Recommendations
foreign eco¬
short-range
should embrace
our
policy,
both
long-range,
following:
(1)
'
•
-.7
*
Establishment and mainte¬
of
nance
as
of
our
(2)
just
and
lasting
peace
paramount objective.
All-out drive to stop infla¬
tion
in
part
every
of
the
free
world.
(3)
Increase
velop,
procure
materials
of
efforts
and
to
allocate
internationally—to
maintained
for
period
of
de¬
raw
.
be
emer¬
only.
(4) Development of non-Soviet
gency
"Emergency economic coopera¬
tion: (a) Production and distribu¬
tion for defense
purposes;
and
to
to
summary,
nomic
pro¬
be
Our
business
looking
to
increased
flow of capital across boundaries.
am
same
the
Council.
,
to offer
now
mendations
the
courage.
States
eign Investment Committee is
de¬
to demonstrate American countries are asking
the adaptability and flexibility of such questions as: Can a reason¬
the American productive system able market be guaranteed after
to our European friends. "For- the
emergency
for
expanded
time
single agency.)
couched
ductive
soon become a yoke.
recent report of Nelson Rockefeller's International
Development
can
imagination, boldness
—all
debts, which was made possible
through liquidation of the money publics
ations
lender, will be replaced by op-
we are confronted with the
require
The Communists have
United
ministers of the 21 American Re¬
economic strategy for peace
should certainly include a drive
speak with
feeling about administrative foul-
making
obligation.
It
(who certainly knows this probcan
been
these conditions is
soon
tamed power We must act, there-
lem first-hand and
has
other countries under
removal -of
and
speeches and writings of our own
States Council Executive
Committee member Paul Hoffman
United
Communism
progress in
are
b(Len eliminated in any country
where a Communist regime ob-
Treaty Organization (NATO), the field
as
originally
Then, the
was
conceived before Korea.
inefficiency
raw
or
lot will learn
promisesjof the Communists
foreign
a
Resources
We
into
oppression and poverty.
oppression and
lately have proposed that
economic policy demands the consolidation of all the scattered efforts within a single governmental
on
cepted
munism
informed
our
driven
Take the example of the Chinese,
The Chinese farmer who has ac-
a governmental
finger in the international economic pie with resultant confusion to all concerned,
notable
be
Our longOnly by our performance can we hope to contain range international economic pol¬
icy
must
keep in mind that a
the
advances
of
Communism,
performance
host of administrative agen-
Three
always the danger that
people; will
Communism.
inconsistent
the proper exercise of
U. S. Dependent
the
cies—some 23 of them—that have
move
forward to expand its productive
of
technological
know-how from the United States
tjo expand production and increase
standards of living? The
question
of
additional
American
capital
investment will also be on the
to Em'°Pean top management. It
is hardly necessary," said "Fortune," "to
suggest
the
means:
minds of our friends from below
there could be seminars and in¬ our southern- borders.
world's strength at rapid rate.;
(5) Administration of all United
States
aid
efforts
under
a
single
agency.
(6)
Enlightened
United
States
and
world
active
economic
leadership.
(7) Planning by business today
beyond emergency period.
(8) Fulfillment of business role
with
enlightened
cooperation by
making possible
extensive flow of foreign in¬
in
governments
an
vestment abroad.
These
sions
at
ideas
the
reflect
the
discus¬
International Cham¬
ber of
Commerce and the United
States
Council; they also reflect
discussions with government lead¬
ers
in many parts of the world.
the past, the United States
In
has
followed
course
in
a
short-sighted
foreign economic
relations. We sought and rejoiced
in the expansion of our
foreign
our
Volume 173 "Number 4998
trade.
But
we
accept
the
fact
healthy
being
balance and that it
sustained
by
loans
grants
that in
too
great
reluctant
were
that
the
it
end
burden
a
We
claimed
of
our
own
ourselves
we
challenge to the Amer¬
a
ican business community to learn
from our mistakes and to act ac¬
cordingly.
Continued,
from
4
page
How
much
too
income?
they get¬
share of national
a
statistics
Government
provide the
this
to
answer
ques¬
tion.
decade of the
In the
and
1920's
again in the decade of the de¬
pressed '30's, stockholders received
just about six cents out of each
In
dollar of the national income.
1950, the amount going to stock¬
holders
only four cents out
national income.
was
of each dollar of
These stockholders
who
that
have
the
are
ones
capital
gives American workmen the
provided
the
machinery and equip¬
to turn out our
phenomenal production.
And I
emphasize that they're now get¬
factories,
ment
necessary
ting only four cents of each dollar
against six cents of each dollar
of
national
income during
the
as
?20's and '30's.
If
want
we
continued
to "get
sizable investment in corporations
production
—
—
Ways and Means Committee, Feb.
There
will stand
in
the
The ultimate
together.
be that at
the
future
day
some
will
Soviets
realize the futility of their efforts
and
im¬
tax rate of 100% at the
income of $100,000
and
1951.
posed
the
If
a
taxable
government
direction
above
the
problems
come
must
for
be
for
take
mum
com-
the
Of
military
since there is no end in
sight.
It will mean substantial
sacrifices all along the line,
Whether
these
sacrifices are
extra,
an
an
this
struggle
We
domination.
intensely
make
marking
in
their
.suspend
nations
free
more
around 20%.
This will be
ditional $58.2 million.
If the gov¬
ernment imposed a tax rate of
100%
at the taxable income of
no
the
petitive area of American business
than
merchandising.
Trying to
above, it would yield only an ad¬
and above, it would get
only an additional $767 million.
If the government imposed a tax
rate of 100% at the taxable in¬
the
undermining
in
5,
is
and
up
easy
profit
goods enough to take
margin on the tax
additional
would
immediately invite under-
selling by
a
dealer's competitor. /
uation in
it
marketing is considered,
inconceivable
is
that
heavy load, espe-
equitably distributed, whether we
carry the load and remain strong,
or whether the future strength of
And, when the competitive sit-
$26,000
a
cially
by
the nation is undermined and we
there
would be none to take advantage
fall prey
of this
will
Communistic forces,
primarily upon the
Now let me summarize NAM'S wisdom of the program we adopt
of the day and plan as business would secure an
billion.
four-point anti-inflation program: at this time.
.
statesmen.
(1) Through effective use of the
If the issue were merely payingClearly, further large sums
of the Federal Reserve as-we-go or not paying, it would
could not be secured by raising powers
When
the income taxes of those in the System, the private credit system be comparatively simple.
can be prevented from leading us
you come right down to it, we
middle and upper brackets. There
to further inflation.
always have to pay as we go. We
just isn't enough income left after
(2) Through a serious program either pay in taxes or we pay in
today's taxes to raise the funds
of economy, governmetn expendi- inflation.
During World War IIr
needed.
tures can be held to the minimum
we paid about 4U% in taxes and
All right. What of the $140 bil¬
up
our
productive facilities for
necessary for meeting the present the other 60%
in inflation—the
lion of income that is not subject
national defense.
emergency.
1
inflation that doubled our price
to income tax how?
Does this of¬
To summarize: A further tax on
(3) Through
broadening
the level and undermined the real
fer a possibility?
Yes, this huge
base of the Federal tax system, by value of our government bonds,
corporations at this time means
reservoir of income may be called
one or more of these three things:
adoption of a manufacturers' our pension plans, the financial
upon to contribute a share to the
uniform excise tax, 'government security which tens of millions of
(1) Reduced dividend payments increased expenses of the defense
can
raise
the
funds needed
to our
citizens had
succeeded in
despite the fact that stockholders effort.
keep the Federal budget in bal- establishing for themselves,
are
now
getting less than their
What is the best
and fairest
ance, thereby protecting the value
We paid at the time. And we
traditional share of the national
way
for tapping it?
There are of the dollar.
are still paying—through continuincome.
three possibilities: (1) Income tax
(4) Through increased produc- ing inflation and through heavy
(2) Curtailment of investment exemptions can be reduced; (2) a
tivity and production we must taxes today to take care of the
or heavier borrowing by the- cor¬
retail sales tax can be used; or
produce the volume of goods that interest and principal of the huge
porations.
(A curtailment of in¬ (3) a manufacturers' excise tax
will absorb the dollars that are Federal debt we accumulated,
vestment would mean less expan¬ can be used.
chasing scarce goods and driving
The program outlined will presion and improvement of Amer¬
Now, most feel that reducing in¬
prices up today.
vent', a repetition of this expeican productive capacity at this dividual income tax exemption is a
rience—or worse. It will protect
dangerous period in our history. method which should be used only
Now What About Controls.
^he
American dollar—and
thus,
Heavier borrowing would, in part, as a last resort. The retail sales
Nothing
must
be
permitted
to
the financial security of our
add to inflationary pressure.)
tax is a real possibility but has
interfere with carrying forward people.
It will protect the incen(3) The passing on of any in¬ certain definite disadvantages: (1) the defense program.
Necessary tives which have made this the
crease in taxes to the public in the
Twenty-nine states already are
supplies and necessary materials most productive nation in the
using the retail sales tax. (2) In must be made available.
form of higher prices.
And world and all that this means
All
of
these
alternatives are view of this, the Federal govern¬
there must be no holding back on> during the present emergency.
It
ment probably ought to stay out
open to serious question when you
converting these materials into will protect our economic strength
(3) It is extremely
consider the long-term welfare of of this field.
needed products.
and enable us to remain a nation
the nation. And, obviously, none difficult to give any exemptions
This
means
that
government' of free men.
of them can yield
a
significant under a retail sales tax. .For ex¬ must have the power to allocate
amount toward meeting our pres¬ ample, to exempt food and ser¬
material and issue priorities for,
vice.
If such exemptions are at¬
ent revenue needs.
defense production; and that gov- '
tempted, they result in endless
and
work
to
ready
rise
to
of
$10,000
above, it
additional $3V2
and
opportunity to undersell.
to
depend
Stop Inflation?
money—are
ting too large
development,
and
in
likely that the free nations
world
encouraging.
is
manufacturer
result would
war
seeable future anticipate a maxi-
would be pyramided between
right
widely shared and achieved by
cooperative efforts, will make it
more
needs. Current plans for the fore-
Secretary of the Treasury Snyder
in his statement before the House
be
and
be
the
consumer,
risking
the faith that economic
would
on
improvement
foreign
repayment of
development which
It
much
prejudiced prospects
of private industrial
solvency
were
We
a
was
would
on
debtors, not to mention
taxpayers.
debts which
to
lacked
37
(1361)
.The Commercial and Financial Chronicle
.
.
increasing invest¬
*
,
„„
*
#
ment
it
—
would
short¬
be
sighted to tax away even more of
the share going to stockholders.
Of
Bankers Underwrite
stockholders pay per¬
course;
sonal income taxes
on
What About Further Taxes on
confusion and materially increase
Individual Income?
both the cost of collection of the
their divi¬
A second great
dends in any case.
that portion of
profits that has not been used for
what
Now,
dividends
of
taxes?
or
there
Is
a
surplus here that could be taxed
without hurting our pro¬
capacity?
Again,
the
away
ductive
is to be found in govern¬
answer
ment statistics.
In
the
The
field
this
in
facts
are
also
provided by the government. Total
personal income in 1951 is esti¬
mated to be $230 billion. Of this
amount
will
only $90 billion, or 39%,
be
subject
income
to
tax.
and
the
dividends, $11.4
bil¬
of
payment
lion.
of
But
taxes
year
$13.1
billion in plant and equip¬
alone.
ment
tions
had,
taxes
and
dends,
invested
corporations
In
billion.
Again
they
In that
invested $17
and equipment
spent more—much more.
corporations
year
billion
in
plant
alone.
From
J)
:
figures, it is evi¬
dent that corporation profits have
not been adequate for expansion
particularly
expansion
First the Amount
this
Of
will
Which
Paid
$77.5
amount,
taxable
the
in
be
on
Are
Now
Taxes
brackets of $6,000 or
the
POSSIBLE
build
from
brackets
and
billion
income
less; $9.5 bil¬
$6,000
to
$26,000;
But
Again, it looks like
potential pay dirt.
over.
found
we've
again let's look at the facts.
do these income
much
payers now
How much
of each
The
accelerated
need nowr'to
we
business units collecting taxes
the
tax¬
have left after taxes?
could we get out
more
of these
figures
They're
BUDGET
To handle the returns from
from
groups?
are
quite amazing.
supplied by
data
Non-Defense Items
Finance, Commerce & Industry
2.
Labor
3.
Transportation
NAM Recom¬
Reduct'n
dent's
mendation
of Presi¬
Request
Fiscal Year
dent's
If)
Request
Resources
(excl.
First, there would be no duplica¬
between Federal
and state
tion
second, it's simple to
exemptions at this level and
tax sources;
make
Agriculture & Agriculture Resources
Housing & Community Development
Research...
7.
Education
8.
Social Welfare, Health
9.
General Government
10.
&
General
& Security..
300,000 collecting agencies.
Specifically, what type-of manu¬
uniform excise tax
Our recommen¬
clearcut. It should be
should be used?
dations,
are
only
the end-product of manu¬
on
facturing. It should exempt food
and food products.
Now, here's an important
point.
and rent
this would
Since food, food products
be
excluded,
that
nearly
50%
be
would
Taxes
which
alcohol
on
yield
now
and
about $3.5 bil¬
16
1,073
650
423
1,244
829
415
1,429
943
486
unjust hodge-podge of excise rates.
How
much could such a tax
—102
—202
100
yield?
the tax—
the present
for all items subject to
eliminating
It's estimated that each 1%
yield just under
483
93
390
of the tax would
2,625
2,216
409
$1 billion. Specifically, 10%
form manufacturers'
excise
1.106
122
with
4,706
205
would
11,000
3,630
$18 billion.
1,020
I want to
there is
4,650
tax,
indicated,
estimated $9 bil¬
20% tax would yield about
yield
A
uni¬
exemptions
the
1,228
4,911
no
facturers'
:
price
.
controls?
an
been
der
these circumstances the
price
will
level
vance.
controls
not
and
cannot
up
evidence that a manu¬
uniform
ad-
Individual prices can move
or
,
wages?
Undoubtedly labor unions
would continue to demand
excise tax
higher
But wages can only be
paid out of the sale of products,
as
determined by consumer de¬
mand. If the over-all price level
cannot
advance,
then
over-all
wages.
Gas
Light
Co.,
a
for the year 1950
$23,485,000 and net
income was $2,489,000, equal after
preferred dividends to $3.21 per
common
share compared with
$1.68 per share in 1949. The cornpany has paid dividends on its
common stock for each of the past
98 years. The current annual rate
of $1.50 per share has been maintained for the past 12 years,
the
company
amounted
to
With William J. Mericka
(Special to The Financial
Chronicle)
CLEVELAND, Ohio—Charles J".
will not advance except as
production per man-hour increas- Ford has joined the staff of Wm. J.
es, Oi at the expense of the income Mericka & Co., Inc., Union Comof
some
other segtpent of the merce Building, members of the
wages
economy.
.
Now, ladies and
one
today
our
production
devote
to
can
our
say
we
gentlemen, no
how much of
will have to
defense
program
during the coming years.
point out strongly that
Washington
102-year old utility operating printried
since
ancient
Rome—and cipally within the District of Cothey have never prevented infla- lumbia, is offering today (March
tion.
They have never worked so 29) to holders of its common stock,
long as the supplies of goods and rights to subscribe to 122,400 addimoney were out of balance with tional shares of common stock at
each other.
<
the rate of one new share for each
Even death penalties for viola- five shares held of record March
tions of price
control rules, as 27, 1951. The stock is priced at
some
governments tried, failed $24.10 per share with the transcompletely. And we do not be- ferable subscription warrants exlieve that price controls can pro- piring at 3 p.m. on April 11, 1951.
tect the purchasing power of the The First Boston Corp. and Johndollar today.
ston, Lemon & Co. jointly head an
This is true regardless of how investment banking group which
well controls are designed and re- will purchase from the company
gardless of how expertly they are any unsubscribed shares,
administered.
It is true because
Washington Gas Light Co. and
prices are a reflection of the sup- its subsidiaries were the first on
ply of buying power in relation the Atlantic Seaboard to convert
to
the
supply of goods on the to straight natural gas which they
market.
distribute and sell within the metWith the program outlined, the ropolitan area of Washington, and
supply of buying power and the adjoining territories in Maryland
supply of goods available for pur- and Virginia. Total revenues on a
chase will remain in balance. Un- consolidated basis as reported by
have
price
Well,
lined, would not labor continue to
demand and get higher and higher
lion, should be held at the present
level, rather than be subject to
the proposed new uniform excise
tax. The rates should be uniform
thereby
about
What
tobacco,
tax.
Utility Stock Offer
producers to carry forward
the program.
the
the
fami¬
from
exempt
force
down, but not the over-all
level of prices.
Even
with
the program
out-
of
199
14,630
Reduction in number of civilian employees
tax;
a
facturers'
lion.
11.
such
third, there would be only about
215
(excl. of inter¬
est, refunds, claims)...
Services & Benefits
Veterans'
from
services
and
1,064
of Atomic
6.
food products
thereby free food,
460
Merchant
Energy)
5.
tax
1,524
Marine, Coast Guard. Panama &
Alaska)
excise
disadvantages.
these
of
none
lies
1 !>.«
1.
Natural
would be
budget of moderate income
Presi¬
4.
Even then
manufacturers'
The
would
REDUCTIONS
(Millions of Dollars)
of
such
large number would mean tens
of thousands more people on the
mean
(excl.
for
government.
a
has
and
How
these
minimum of 3,000,000
a
widespread.
only $2.9 billion will be in the
taxable income brackets of $26,000
$8.2
there
tax,
government's payroll.
the
divi¬
would be
sales
tax avoidance doubtless
lion will be in the taxable income
of
retail
a
arately.
1950, corpora¬
after the payment of
payment
With
Let's look at these two parts sep¬
In
they spent more.
that
avoidance.
taxes and tax
income.
individual
is
revenue
1949, corporations had, after
payment
and
of
potential source
the power to
must have
ernment
At the
peak of World War II some 46%
of our output of all goods and
service
was
taken for military
Midwest Stock Exchange.
With
Minneapolis Assoc.
(Special to The Financial
Chronicle)
MINNEAPOLIS, Minn.
—
Wil-
liam G. M. Smith has been added
to the staff of Minneapolis Associates, Inc., Rand Tower.
53
The Commercial and Financial Chronicle
(1362)
Securities
•
Aberdeen
March
stock
14
Petroleum
5,000 shares of capital
(par $1). Price—At market (about $5 or $6 per
Underwriter—None.
Proceeds—To Russell F.
share).
and
Margaret
Office—First
•
Air
March
5Vz%
Kerr
Hunt,
National
Power
selling
two
stockholders.
Building, Tulsa, Okla.
Publishing Co.,
(4/2)
Inc.
(letter of notification)
$65,000 of
convertible notes due March 31, 1961.
At par
10-year
Price—
(in denominations of $100, $500 and $1,000 each).
Underwriter—None.
Office—15
West
Proceeds—For
Clinton
Avenue,
capital.
J.
working
Tenafly,
Burney Mines, Inc., Tucson, Ariz.
(letter of notification) 1,500 shares of common
stock.
Price—At par ($100 per share).
Underwriter—
None.
Proceeds—To develop mining properties.
Office
March 20
—2422 N. Balboa
N.
1
($1
par
Gold
filed 80,000
Mines
common
Underwriter—None.
share).
per
Hollywood, Calif.
stock. Price—At
Corp.,
shares of
Proceeds—For
further development of mine and for working
capital.
stock
mon
—None.
American
Feb.
and
Dairy Products Corp., N. Y.
filed 300,000 shares of preferred stock
16
300,000 shares of
offered in units of
of
common
Price—$15
Proceeds—To
acquire plant, to
pay
American Gas & Electric Co.
(3/29)
Feb. 28 filed 339,674 shares of common stock (par $10),
to be offered to common stockholders on or about March
30, 1951, on the basis of one share for each 15 shares
held, together with an oversubscription privilege; rights
to expire April 17. Price—$52.25 per share. Underwriters
—To
be
determined
by "competitive
bidding. Probable
Corp.; Union Securities Corp.;
Dillon, Read & Co. Inc.; with bidders to name compensa¬
tion following company's naming of price. Proceeds—To
be invested in equity securities of operating subsidiaries
as part of the System's plan for
financing its large con¬
struction program. Bids—To be received up to 11 a.m.
bidders:
(EST)
The First Boston
March
29, at
Street, New York 8, N. Y.
•
on
Artloom
Carpet
company's office, 30 Church
Statement effective March 19.
Co.,
Inc.,
Philadelphia,
Pa.
(4/25)
March 27 filed 78,556 shares of common stock (no par),
to be offered to common stockholders of record
April
25 on basis of one share for each four shares
oversubscription privileges.
derwriter—None.
Price—$10
Porceeds—For
per
working
held, with
share. Un¬
capital.
Black, Sivalls & Bryson, Inc., Kansas City, Mo.
March 15 filed 120,000 shares of common stock (par
$1),
to be offered for subscription by common stockholders
at rate of
$12.50
one
March
5
•
Brad
stock
being offered
100)
(par
to
mon
Gear
Works, Inc., Cicero, III.
(letter of notification) 150,000 shares of
stock
(par 20 cents).
Price—$2
per
share.
com¬
Under¬
writer—Georhart, Kinnard & Otis, Inc., New YJirk.
Proceeds—For working capital. Office—1309 So. Cicero
Avenue, Cicero, 111.
mon
Silver Mines Co., Salt Lake
City, Utah
(letter of notification) 1,633,124 shares of com¬
stock being offered for subscription
by stockholders
of record
March
15, 1951, at rate of
one
loans and for
Jan. 25 filed 144,151 shares of $5 cumulative convertible
preference stock (no par) and 144,151 shares of $3 cumu¬
lative second preference stock
(no par), together with
voting trust certificates representing the same, offered
in
exchange for
144,151
preferred stock
vertible
shares
&
Co.
of
$6
cumulative
con¬
soliciting
exchanges.
to
April 30.
Statement
Georgeeffective
Celanese
Proceeds—To
repay
series
Burlington Mills Corp.
5
(4/4-5)
Commerce to
bank
•
(4/11)
convertible
A
Culver
Oct.
existing holders. Price — Plus dividend rate, to be
supplied by amendment. Underwriter — Dillon, Read &
Co., New York. Proceeds—To retire $44,100,000 of first
preferred stock, and for capital additions to plants and
Peabody
&
Co.,
New
York.
Proceeds—For additions'and
improvements to plant and
equipment.
:
Corp., Chicago, III. (4/10) V
132,182 shares of common stock
filed
23
(par $5),
of which 4,818 shares are to be offered to stockholder!
and 127,364 shares to public. Price — To stockholders at
$5 and to public at about $6.75 per share.
—None.
Proceeds—For investments.
Underwriter
;;
facilities.
•
Celanese Corp. of America (4/11)
22 filed $100,000,000 of sinking fund
March
Day Mines, Inc., Wallace, Ida.
(letter of notification) 58,425 shares of common
(par 10 cents), of which 48,425 shares are to be
publicly offered at $4 per share by the escrow agent,
without underwriting, and the remaining 10,000 shares
are to
be issued in exchange for 10. patented mining
claims in the Hunter Mining District.
Feb. 21
debentures
stock
due April 1, 1976.
Price—Plus other details, are to be
supplied by amendment. Underwriter — Dillon; Read &
Co. Inc., New York.
Proceeds — To refund $75,908,750
funded debt, for capital and additions to plants and facil¬
ities and for general corporate purposes.
Central
Louisiana
Jan. ^25 filed
Electric
•
March
250,297 shares of
common stock (par $10)
preferred stock (par $100), of
preferred stock and 214,800 shares are being
offered in exchange for shares of common stock of Gulf
Public Service Co., Inc., on basis of 4/10ths of a share
of
common
Gulf
and
common
l/25th of
share
held
share of
a
as
of
York
March
sale
by the
outstanding.
to holders of common stock
Underwriter—None. Purpose—To ae-
company
March
Statement effective March 12.
Chanslor
Feb.
6
&
(letter
Lyon-Palace Corp., San Francisco
notification) 11,111 shares of capital
Price—At market (estimated at $9 per
Calif.
•
six selling
Street, San Francisco, Calif.
mon
plant
Street, Chester, S.
improvements.
Office
C.
—
109
;
:
Chevron Petroleums,
•
Wylie
...
.
Colorado
Feb. 28
.
.....
;
•
Central
Power
to
6,
March
held
April
Proceeds—For
So.
for
construction
program.
be
Price—At
par
held;-rights to-
($20 per share).
construction
Under-;
program.
Price—75 cents per share.
of
com¬
Under¬
Proceeds—To pay
Power
one
with
Duke
& Co.
each 8.2
share for each 10 shares held
an
Underwriter
Power Co.
22 filed
as
of April
oversubscription privilege.
—
Price—$75
Proceeds — For con¬
None.
^
.
(4/16)
,
$35,000,000 first and refunding mortgage
Inc.; Morgan Stanley & Co.; Stone & Webster Se¬
Corp.; The First Boston Corp.. Proceeds — For
Offering—Expected about Apr. 16.
curities
construction program.
Duncan Coffee
Co., Houston, Tex.
class A convertible com¬
stock (par $2.50). Price—To be supplied by amend¬
ment.
Underwriters—Underwood, Nehaus & Co., Hous¬
Office—
,
March 20 filed 150,000 shares of
Broadway, Englewood, Calif.
mon
Consolidated Cigar Corp.,
New York
(4/4)
March 9 filed 50,000 shares of cumulative preferred stock,
series of 1951 (no par). Price—To be supplied by amend¬
ment.
—
To
prepay
short-term bank loansjand for",
working capital.
Co.^
Inc., New York
Dec. 27 filed 220,000 shares of capital stock (par 10 cents),
offered in exchange for 200,000 shares of common stock
Boston
Philadelphia
Pittsburgh
San Francisco
Private IVires
to
all
offices
Chicago
Cleveland
ton,
of
Tex., and Dewar, Robertson & Pancoast, San An¬
Proceeds—To H. M. and C. W. Duncan,. Pres¬
tonio, Tex.
ident and Vice-President, respectively, who are
selling stockholders.
•
Consolidated Textile
New York
^
Underwriter—Eastman, Dillon & Co.,. New York.
Proceeds
-
.
'
the two
.
Elfun
Trusts, New York
units of trustees certificates (sub¬
scription limited to officers and employees of General
Electric Co.). Underwriter—None.
March 26 filed .100,000
Bates Manufacturing Co.
(Consolidated now owns
51,400 shares, or approximately 13% of the 391,500 out¬
standing Bates shares) on basis of 11 shares of Consoli¬
dated for 10 shares of Bates stock.
Exchange offer to
Equity Fund, Inc., Seattle, Wash.
19 filed 500,000 shares of common stock (par 20
cents). Price—At market. Underwriter and Distributor
—Pacific Northwest Co., Seattle, Wash.
Proceeds—For
expire April 30.
investment.
Statement effective March 2.
-
•
\
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
oversubscription privilege; rights
Price—$14 per share.
Underwriter—
None.
3470
share
to
bonds due April 1, 1981.
an
expire
2.
one
stock
common
10 shares
Proceeds—For
(par 10c).
share.
March
record
at rate of
of
share for each
one
basis of
1951,
per
Co.
shares
1951
(3/30)
shares
Co. .(4/6)
'.v
126,255 shares of common stock (no par)t
be offered to common stockholders for subscription,
•
stock
1,
is¬
stockholders of record March 30, 1951,
struction program.
v
(letter of notification) 19,037 shares of common
(par $5)
offered to common stockholders of
with
stock
Duke
on
option and develop prop¬
•
interests
15, 1948.
March 22 filed
s
Ltd., Toronto, Canada
up
Nov.
purchase price for building ($20,000) and for
working capital.
•
«
-
March 14 filed 900,000 shares of common stock (par $1)
to be offered "as a speculation."
Price —50 cents per
share. Underwriter—Willis E. Burnside &
Proceeds—To take
on
balance of
15
ceeds— For
fractional
writer—Olds & Co., Jersey City, N. J.
Telephone Co., Chester, S. C.
(letter of notification) 360 shares of common
Price—$100 per share. Underwriter—None. Pro¬
.
stock.
of
Duggan's Distillers Products Corp.
Oct. 27 (letter of notification) 340,000 shares
Chester
March
common
expire April 26.
Fay, San Francisco,
stockholders. Office—
Co.
850,000
writers—None.
&
Proceeds—To
Polk
Edison
filed
1
basis of
on
(par $5).
share).
Underwriter—Hooker
holders
of fractional shares
lieu
offered to
of
stock
Proceeds—To
'
Detroit
quire not less than 429,600 shares (80%) of Gulf common
stock.
of
Deep Rock Oil Corp., Tulsa, Okla.
16 filed a maximum of 7,000 shares of common,
stock (par $1) to be issued in connection with about 1,100
memberships in the stock purchase plan for employees
involving anticipated contributions not to exceed $240,000.
offer will expire on April 3. The remaining 35,497 com¬
mon
shares are reserved for possible future issuance
then
Inc.,
(letter
March
This
13.
26
in
sued
preferred for each
record
Daystrom,
Elizabeth, N. J.
notification) not in excess of 900
shares of capital stock (par. $10).
Price—$17- per share.
Underwriter—Probably- Kidder, Peabody & Co./ New
Co., Inc.
and 21,480 shares of 4.5%
erties.
Underwriter—Kidder,
construction of hotel.
secure
Cudahy Packing Co.
(4/17)
March 23 filed $10,000,000 sinking fund debentures due
April 1, 1966. Price — To be supplied by amendment.
Underwriter—Halsey, Stuart & Co. Inc. Proceeds—To
reduce bank loans by $9,000,000, and the balance added
to working capital.
to
filed
300,000 shares of convertible preference
(par $100). Price—To be supplied
by amendment.
com¬
corporation
(par $100), to be offered to
stockholders of record April 11, 1951, at rate
of six shares for each 35 shares held; rights to expire
on
April 25. The opportunity to exchange 7% second
preferred stock for new preferred stock is to be given
stock,
Proceeds—To pur¬
Co., Inc., which
will construct Dallas hotel. Business—A non-profit
under sponsorship of Dallas • Chamber - of
pany
construction.
Corp. of America
Underwriter—None.
chase debentures of Statler Dallas
Telephone
common
York.
stock
Cosmopolitan Hotel Co. of Dallas, Tex.
$1,500,000 of 2% debentures due 1965. Price
Co., Inc,, New
Feb. 21.
March
new
additional equipment and development
Office—Wright Building, Tulsa, Okla.
Dec. 13 filed
basis
of one share of each
class of preference stock for each share
of $6 preferred
on
stock; offer extended from March 26
son
&
March 22 filed 1,000,000 shares of cumulative
730
Co., Berlin, N. H.
Geneva, 111.
and 90,000 shares are to be offered privately
personally to business associates of present stock¬
Price—$2.50 per share. - Underwriter—None.
—At face value.
share for each
shares held (with an
oversubscription privilege);
rights to expire on or about April 28.
Price—At par
(10 cents per share).
Underwriter—None. Proceeds—
For development of ore.
Office—218 Felt Bldg., Salt
Lake City 1, Utah.
111.
working capi¬
Coronada
costs.
—
two
Brown
Water
Blyth & Co., Inc., New York.
and
Bristol
March 2
Chicago,
Co.,
Proceeds—For
stock¬
common
basis of 11 shares for each
on
Co. (4/5)
March 19 filed 40,000 shares of common stock (par $25).
Price
To be supplied by amendment.
Underwriter —
preferred
&
holders
California
•
Underwriter—Boettcher
holders.
which the
Foote
19
•
5
Mines, Inc., Tulsa, Okla.
March 15 (letter of notification) 160,000 shares of com¬
mon
stock (par $1), of which 70,000 shares are to be
issued to repay loans made to corporation by stock¬
Airways, Inc., New York
(letter of notification) 123,640 shares of com¬
holders of record March 5
Price—
Underwriter—F. S. Yantis & Co., Inc.,
Proceeds—To acquire stock of Zenite Metal
Chicago, 111.
Corp.
March
share for each three shares held.
share.
per
•
Eastern
100 shares held; rights to expire March 31. Underwriter
—Sterling, Grace & Co., New York, up to an aggregate
price of $150,000. Proceeds—For working capital.
of New York.
indebtedness and for working capital.
Car-Nar-Var Corp., Brazil, Ind.
(letter of notification) 150,000 shares of com¬
mon (voting) stock (par
$1). Price—$2 per share. Under¬
writers—Sills, Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
For working capital and general corporate purposes.
and
California
both
per
ISSUE
Continental
March
amount.
Underwriter
share.
per
ADDITIONS
PREVIOUS
Proceeds—To retire indebtedness and for
Proceeds—To retire indebtedness and to finance
mon
Price—$5
SINCE
tal. Office—715 Hamilton St.,
unit. Underwriters—
Emanuel, Deetjen & Co. and Barrett Herrick & Co., Inc.,
common
INDICATES
Electric Co., Geneva, III.
(letter of notification) $300,000 of 6% sinking
fund debentures due Dec. 1, 1975 (to be issued in units
of $100, $500 and $1,000 each). Price—91% of principal
Paper
(par $10).
Thursday, March 29, 1951
.
Continental
common
expansion.
stock (par 10 cents) to be
share of preferred and one share
one
stock.
(par $4)
of
Co., Inc., Elizabeth, La.
(letter of notification) 23,333 shares of com¬
21
March
shares
50,000
and sale of "Tintair."
Calcasieu
•
and
$100)
(par
.
March 2
stock
(par $1) to be offered "as a speculation," in units of
one share of preferred and
10 shares of common stock.
Price—$200 per unit.
Underwriter—None. Proceeds—
to repay bank loans and purchase equipment. Business—
stock
Production
Alhambra
Nov.
Ave., Tucson, Ariz.
Bymart, Inc., New York
Feb. 28 filed 5,000 shares of 5% cumulative preferred
23
•
Registration
•
Corp., Tulsa, Okla.
(letter of notification)
in
Now
.
•
March
Volume 173
•
Number 4998
.
.
The Commercial and Financial Chronicle
,
(1363)
Erie
Forge Co. (4/2)
(letter of notification) 75,000 shares of com¬
(par 10 cents).
Price—$4 per share.
Un¬
derwriters—Lee Higginson Corp. and P. W.,Brooks &
March
working
Co., Inc., New York.
Proceeds—For
Offering—Expected on April 2.
First
NEW ISSUE CALENDAR
capital.
March
March
Securities
Food
Machinery & Chemical Corp.
Detroit
Air
(4/10)
Francisco, Calif.
Proceeds—For new construction
other general corporate purposes.
Edison
Lone
Star Steel
North
Granite
each
2
(letter of notification) 450 shares of common
(par $1), to be offered to common stockholders
five
shares
held
26
a
on
(with
basis
of
one
lege good to April 14); rights expire on April 4. Price
—$100 per share.
Underwriter—None.
Proceeds—For
working capital.
Office—18 Hamilton Street, Bound
Brook, N'. J.
Acceptance Corp.-
Preferred
Technique, Inc
Associated
Potomac Edison
share for
-Common
-Common
Telephone
Co.
11
Gamble-Skogmo, Inc.
19 (letter of notification) 1,345 shares of com¬
stock (par $5).
Price^-At market (approximately
$9 per share). Underwriter—None. Proceeds—To Edith
L. Feldtkeller, the selling stockholder.
"■■JA
March
mon
Bonds
Light Co. of Columbus (Ga.)
(letter of notification) $250,000 of 6% cumula¬
tive preferred stock to be offered for subscription by
common
stockholders.
Price
At par ($50 per share).
Corp
Preferred
13th
St., Columbus, Ga.
(ES.T)___Eq. & Tr. Ctfs.
General
March 5
stock
Co.
Shoe
Worcester
company
County Electric Co.
(EST).-Bonds
noon
Co
Inter-Mountain
Telephone Co.—
Oklahoma
&
Duke
Gas
Electric
Common
.-Common
Co
Common
Underwriter
for
capital
stock
The
of
Nisley
.
tures
notification)
(letter of
denominations
(in
Dec.
28
filed
of
$50,000 of 8%
$50
each).
Distilleries
Duke
159,142 shares
of class B
Public
Price—At par.
capital.
stock
common
Illinois
Central
'
debt
pay
and
Co.
(4/24)
March 21 filed 200,000
shares of
common
Underwriters—To
determined
be
Probable bidders:
by
.Bonds
......Common
May 14, 1951
Qas Co.——Debentures
Securities
Power
and general corporate purposes.
•
Gunnison Oil Co.,
Salt Lake City, Utah
March 15 (letter of notification) 750,000 shares of
assessable
stock.
common
Price—At
share).
Underwriter—None.
oil
drill
and
Salt Lake City 2,
<
common
per
So.
^Ith
<
Co
stock
(par $1).
writers—Company itself
IncC
Price—$5J per share. Under¬
in New Vork, and Jackson &
Co., Boston, Mass. Proceeds^JThr partial financing of*,
anticipated military contracts and for acquisition of new
manufacturing
Fork
Oct.
facilities.
Office—80
Wall
Street,
New
5, N. Y.
Hamilton
Insurance
Co.,
Philadelphia
64,000 shares of capital
(letter of notification)
55). Price—$4.50 per share. Underwriter—
Jenks, Kirkland & Grubbs, Philadelphia, Pa. Proceeds—
To increase capital and surplus in order to offer addi¬
tional
and
•
(oar
lines
ment.
of
insurance, including automobile casualty
liability coverage.
Financing indefinitely delayed.
Incorporated
Investors, Boston, Mass.
March 26 filed 400,000 shares of common stock
Price—At the
market.
Boston, Mass.
Proceeds—For investment.
Distributors—The Parker
Corp.,
Underwriter—Paine,
Webber, Jackson & Curtis
& Webster Securities Corp.
Proceeds—For
Stone
new
construction, etc.
first to common stock¬
Price—To be supplied by
Underwriters—Dallas Rupe & Son, Dallas,
(par $1) to be offered
stock
10-day standby.
Estabrook & Co., Boston, Mass.; and Straus
Texas;
12
(letter of notification) 3,000 shares of 5% cu¬
mulative preferred stock, series B.
Price—At par ($25
per share).
Underwriter—Florida Securities Corp., St.
Petersburg, Fla., and H. W. Freeman & Co., Ft. Myers,
Fla ^Proceeds—For general corporate purposes.
*
to reimburse
bonds.
gage
March
stock
<
Co., Lorain, Ohio
13 (letter of notification) 6,705 shares of common
(no par), to be offered to common stockholders
rate of one share for each 10 shares held. Price—
$20 per share. Underwriter—None. Proceeds—For work¬
ing capital. Office—203 West Ninth St., Lorain, Ohio.
Lorillard
(P.)
Inter-Mountain Telephone Co.
(4/5)
be
offered
basis of
for
subscription by
stockholders
share for each two shares held on April
one
common
5, 1951; rights to' expire on April 26, 1951. Of the total,
64,164 shares will be purchased by two principal stock¬
holders, to wit:* Southern Bell Telephone Co. and Chesa¬
peake
To
Co. of Virginia.
Price—
Underwriter—Courts &
Proceeds—To reduce indebtedness.
& Potomac Telephone
be supplied
by amendment.
Co., Atlanta, Ga.
Israel
(State of)
filed
of "Independence Issue"
viz: 15-year 3]/2% dollar coupon
bonds due May 1, 1966; and 12-year dollar savings bonds
to be dated the first day of the month in which issued
borids,
19
in
two
$500,000,000
types,
Co., New York
shares of common stock (par $10) be¬
ing offered to common stockholders of record March 21
at rate of one share for each nine shares then held; rights
to
April
expire
4.
writers—Lehman
Price—$20.50
Brothers
and
per
Smith,
share.
Under¬
Barney
&
Proceeds—To reduce bank loans.
New York.
Co.,
Statement
effective March 21.
Lynn Gas & Electric Co.
27 filed $4,100,000 20-year notes,
series A, due
Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Kidder, Peabody & Co.
Proceeds
To repay $3,800,000 2%% promissory notes
due June 1, 1951, and the balance for new construction.
March
April 1, 1971.
—
Offering—Expected in April.
•
and
J.
M.
March 16 filed 142,500 shares of common stock (par $10)
to
&'
Proceeds—To amount to $6,000,000,
company for redemption of
% first mort¬
Blosser, Chicago, 111.
•
Inter-County Telephone & Telegraph Co.
March
(par $5).
1
and
on
Fire
2
stock
Associated Telephone Corp. (4/3)
March 19 filed 20,000 shares of $2;50 cumulative pre¬
ferred stock (no par). Price—To be suppiled by amend¬
March
(letter of notification) 34,320 shares of class A
March 8 filed an
Bonds
Indiana
ww
f
Co., Dallas, Tex. (4/2)
unspecified number of shares of com¬
Star Steel
Feb. 28 filed 249,600
East Street,
Utah.
Gyrodyne Co. of America,
March 14
non¬
Proceeds-fTo explore for
Office—659
wells.
par__i.4'0 cents
r-
Kittanning, Pa.
Arch Street,
at the
.Preferred
September 11, 1951
Alabama
Bonds
______
Merrill Lynch, Pierce, Fenner
(jointly); Stone & Webs¬
Proceeds—For new construction
Corp.
(par $1). Price—$5.25 per
& Co., Los Angeles, Calif.
Lorain Telephone
1951
July 17, 1951
Power Co.—
stock (no par).
bid¬
share. Underwriter—
Proceeds—To Fewel
Bros., Inc., the selling stockholder.""
V ~
Kittanning Telephone Co., Kittanning, Pa.
Feb. 15 (letter of notification) 6,021 shares of capital
stock (par $25) being offered, first to stockholders of
record Feb. 24 at rate of 223/1000ths of a share for each
share held; right to expire on March 31. Unsubscribed
shares to be offered publicly.
Price—$45 per share.
Underwriter — None.
Proceeds —To convert to dial
equipment and for expansion program.
Office — 208
stock
mon
& Beane and Lehman Brothers
ter
Kingsburg Cotton Oil Co., Kingsburg, Calif.
1 (letter of notification) 6,000 shares of capital
March
Lone
Natural
Power Co
Mississippi
competitive
.—Common
.Common
5,
Price—$4.25
share. Underwriter—None. Proceeds—To construct
cotton gin. Address—P. O. Box 277, Kingsburg, Calif.
amendment.
Georgia
for
rights to expire on April 20.
shares held;
Telegift, Inc.
working capital.
Utilities
Co.——
June
of common
(par $1), being offered to common stockholders
of record March 10 on basis of one share for each 10
holders for a
Consolidated
5% serial bonds due annually Feb. 1, 1952 to Feb. 1,
1961, inclusive. Price—At par and accrued interest. Un¬
ding.
Kingsburg (Calif.) Cotton Oil Co.
(letter of notification) 42,187 shares
Consolidated Edison Co. of New York, Inc.—Bonds
gage
States
—.—Equip. Trust Ctfs.
May 2, 1951
r
Ohio Edison Co. 11 a.m. (EST) ——Pfd. & Com.
Bay Drop Forge Co., Green Bay, Wis.
(letter of notification) $200,000 of first mort¬
Gulf
-Bonds
May 1, 1951
Green
Proceeds—To
Pfd.
Common
April 25, 1951
Artloom Carpet Co., Inc
-
derwriter—None.
—Debentures
Monongahela Power Co
—
27
.>+
Debentures &
RR
returned
was
stock
Fewel
-
April 24, 1951
held; rights to expire on April 17.
Price
To be supplied by amendment.
Underwriters — The
First Boston Corp. and Merrill Lynch, Pierce, Fenner &
Beane, both of New York. Proceeds—For expansion pro¬
Feb.
—Bonds
April 19, 1951
Gulf States Utilities
V
_Bonds
Wisconsin Power & Light Co
v
received March 27, which
Statement effective March 14.
was
March 8
Debs. & Pfd.
Cudahy Packing Co.—
filed
v
Hutzler,
per
Oklahoma———
of
Union Securities Corp. and Salomon
(jointly). Proceeds—From sale of pre¬
ferred, together with proceeds to be received from the
sale of 350,000 additional common shares to General
Public Utilities Corp., the parent, will be used for new
construction. Bids—Only one bid, from Salomon Bros. &
Common
(CST).Com.
—
Peabody Coal Co._.
Warner-Hudnut, Inc.
shares
:
a.m.
April 17, 1951/.
City Steei Co. (4/3)
248,600 shares of common stock (par
$12.50) to be offered for subscription by common stock¬
holders of record April 3 on basis of one share for each
gram.
Service
deben¬
Granite
3V2
Co
Power
& Hutzler
unopened.
(CST)__Bonds
a.m.
stock
First Boston Corp.;
„
Co.
Offering—Deferred indefinitely.
14
11
'
,
(par $100). Underwriters—To be determined by com¬
petitive bidding. Probable bidders include Glore, Forgan
& Co.; Kidder, Peabody & Co.; Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co. (jointly); The
Common
Debentures
April 11, 1951
Celanese Corp. of America—
(par $1). Price — To be filed by amendment. Under¬
writer—Glore, Forgan & Co., New York. Proceeds—
For working capital and general corporate purposes.
March
Corp.
Mountain States Power Co. 10:30
Proceeds—For working
Underwriter—None.
Glenmore
...
Mountain States Power Co.
Inc., Buford,
v'/. V.
Georgia
16
14.
Jersey Central Power & Light Co.
Feb. 21 filed 40,000 shares of cumulative preferred
April 16, 1951
Georgia Shoe Manufacturing Co.,
March
Debentures
—
Food Machinery & Chemical Corp
Co.
—
early in April.
March
April 10, 1951
Culver
Shoe firm. Offering—Expected latter part of this month
•
Inc.
common
None, but it is expected that Smith,
Barney & Co., New York, will make a secondary offer¬
ing of aforementioned shares on behalf of the Smith
or
.Common
Pfd. & Common
Sattler'sr Inc.
(letter of notification) 7,500 shares of
exchange
Co.-—-:
April! 9, 1951
Plywood,
(par $1) to be issued to The G. Edwin Smith Shoe
in
Power
was
Proceeds—For ex¬
Bids—Only one bid was received by
March 27, from Halsey, Stuart & Co. Inc.,
returned unopened.
Statement effective
on
which
Bros.
Wisconsin Power & Light Co
Corp., Nashville, Tenn.
First Boston Corp.; Otis & Co., Salomon
Harriman Ripley & Co., Inc.; Kidder,
The
& Hutzler;
pansion program.
April 6, 1951
-
and
& Co.
Corp.;
Tennessee Gas Transmission Co.__Pfd. & Common
Office—107—
system.
-
first mortgage bonds due in 1981.
bidding
Stuart & Co. Inc.; White, Weld
Shields & Co. (jointly); Equitable Securities
Probable bidders: Halsey,
Bros.
noon
—
to expand natural gas distribution
Jersey Central Power & Light Co.
Underwriters—To be determined by competitive
Peabody & Co.; Glore, Forgan & Co.
Underwriter—None.
■
stock
Southern Pacific Co.
California Water & Telephone
Proceeds—From sale of stock, to¬
gether wtjh proceeds from private sale of $750,000 mort¬
gage bonds to Northwestern Mutual Life Insurance Co.,
Jerry Fairbanks, Inc., Hollywood, Calif.
(letter of notification) 193,000 shares of common
(par $1). Price—$1.50 per share. Underwriter—
D. Gleich Co., New York. Proceeds—For production of
motion pictures for theatrical and television purposes
and for working capital.
Feb. 16
(EST)
Bonds
Pyramid Electric Co._____________Pfd. & Common
Southern Co. 11:30 a.m. (EST)
--Common
a.m.
April 5, 1951
•Gas
March 9
(letter of notification) 15,000 shares of common
stock.
Price—At par ($10 per share). Underwriter—
None.
Proceeds—For corporate purposes and the pur¬
chase of merchandise (steel) for resale. Office—Care of
Efrein &
Metrick, 320 Broadway, New York, N. Y.
Feb. 21 filed $1,500,000
April 4, 1951
Burlington Mills Corp
Preference
Consolidated Cigar Corp.__
Preferred
Thompson Products, Inc
-Debs. & Common
Vanity Fair Mills, Inc
-Common
•
Steel Corp.
Jan. 2
^..Common
(Territory of Hawaii)
(EST)
p.m.
Indiana
oversubscription privi¬
an
Notes
Common
l__Common
April 3, 1951
City Steel Co
and
16
March
Common
Co
American
Rapid Film
York, N. Y.
Israel
Co
Lone Star Steel Co.
Forming Machine Co. of America, Inc.
about
(EST)__Com.
a.m.
1951
April 2, 1951
Publishing Co., Inc.__
Forge Co l—
Honolulu
record
30,
Power
Erie
be filed by amendment.
Underwriters—Kidder, Peabody & Co., New York, and Mitchum, Tully & Co., San
stock
1951
Mountain States Telephone & Telegraph Co.._Com.
Piedmont Natural Gas Co., Inc
-Notes & Com.
March 14 filed $25,000,000 of 25-year sinking fund deben¬
tures due March 15, 1976.
Price—Plus coupon rate, to
March
29,
American Gas & Electric Co. 11
maturity value of 150% of par.
of principal amount.
100%
Corp., Philadelphia, Pa.
Feb. 26 (letter of notification) 200,000 shares of capital
stock (par 1 cent).
Price—50 cents per share. Under¬
writer—Corporation itself. Proceeds—For working capi¬
tal and expansion program. Office—1520 Locust Street.
Philadelphia, Pa.
of
Price—At
Underwriter—American Fi¬
nancial & Development Corp. for Israel. Proceeds—For
economic development of the State of Israel.
Office—
Authorized agent is located at 11 East 70th St., New
and to have a
20
stock
mon
39
M.
and
M.
Consolidated, San
Francisco, Calif.
shares of capi¬
stockholders for sub¬
scription.
Price—75 cents per share.
Underwriter—
None. Proceeds—For working capital. Office—1715 Mills
March
(letter of notification) 399,923
19
tal stock
(par $1) to be offered to
Tower, San Francisco, Calif.
Metal
Feb.
12
Products Mfg. Co. Inc.
(letter of notification) 25,000
shares of class A
voting common stock (par $1). Price—$5 per share.
Underwriter—James T. DeWitt & Co., Washington, D. C.
and working cap¬
Fredericksburg, Va.
Proceeds—For organizational expenses
ital.
Office—Wolfe and Jackson Sts.,
Continued
on vaae
40
*«•
40
»
The Commercial and Financial Chronicle
(1364)
.
.
Thursday, March 29, 1951
.
Continued
from
page
•
Olympic Radio & Television, Inc.
23 (letter of notification) 2,000 shares of com¬
mon
stock
(par $1).
Price—At the marekt
(about
$12.12V2 per share).
Underwriter—To be sold by Van
Alstyne Noel & Co., New York, as broker on the New
York Curb Exchange.
39
March
Mexican
Gulf Sulphur Co.
(letter of notification) 42,800 shares of common
stock (par 10 cents). Price—At the market (estimated
at $7 per share.
Proceeds—To further develop com¬
pany's properties and for general working capital.
Feb.
16
Monongahela Power Co. (4/24)
March 23 filed $10,000,000 of first mortgage bonds due
April 1, 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &
Co.
Inc.;
Co.
and
Equitable
The
curities
Feb.
•stock
Corp.; W. C. Langley &
Corp. (jointly); Union Se¬
Salomon Bros. & Hutzler (jointly);
Boston
Corp. and
Lehman
Brothers; Kidder, Peabody & Co.; Merrill
Lynch, Pierce, Fenner & Beane; Glore, Forgan & Co.;
Harriman Ripley & Co., Inc.
Proceeds—From sale of
bonds together v/ith proceeds ($4,000,100) from proposed
sale of 615.400 common shares to West Penn Electric Co.,
tive
Wyo.
March
7
filed
$5,500,000
Co.
first
of
mortgage bonds
Lynch, Pierce, Fenner & Beane.
loans
for
and
Proceeds—To
construction.
new
due
repay
Bids—To
be
opened at 11 a.m. (CST) on April 10 at company's office
In Chicago, 111.
Mountain
States
Power
Co.
(4/10)
March 7 filed 150,000 shares of common stock (par $7.25).
Underwriters—To be determined by competitive bidding.
Probable
bidders: Blyth & Co., Inc.; Merrill Lynch,
Pierce, Finner & Beane; Lehman Brothers; A. C. Allyn
& Co. and Bear, Stearns & Co. (jointly).
Proceeds—To
repay
bank
To
received
be
to
10:30
loans
for
and
expansion
Bids—
program.
at
company's office in Chicago, 111.,
(CST) on April 10.
a.m.
Mountain
States
up
Telephone^ Telegraph Co.
share); rights expected to expire
April 30. Un¬
repay
advances
to
Proceeds—To
on
American
Telephone & Telegraph Co., the parent, and
general corporate purposes.
for
National
March
to
14
be offered
68,652 shares of
common
National for
share of Mortar.
Underwriters—None.
Street
Sales
Corp.,
New
York.
Proceeds—For
invest¬
ment.
•
Z.''-'-
Neslo Products
Corp., New York
(letter of notification) 10,000 shares of class
March 23
A
common
stock.
Price—At
($2
share).
Un¬
derwriter—None.
Proceeds—For organization expenses
and
for new
equipment, etc.
Office—15 Park Row,
New York 7, N. Y.
par
for
Okla.
eon-
Broadway, Cushing, Okla.
(par $25).
Proceeds—
development of Israel industry.
Statement
of
record
March
share.
per
per
.
New
Oil
10
on
a
basis
Proceeds—For working
tional
of
five
Bank
Barbara,
for
each
Price—20 cents
&
Co., New York.
Office—First Na¬
capital, etc.
Bldg., Santa
shares
April 6.
on
Underwriter—Burnham
.
be
10,000 shares of
shares
10,000
to
writer—Cantor, Fitzgerald & Co., Inc., New York. Pro¬
repay debt and for working capital.
Office
—15 Exchange Place, Jersey City, N. J.
♦u*
Rapid Film Technique, Inc., N. Y. (4/2)
March 8 (letter of notification) 60,000 shares of
commoi|
stock (par 100). Price, $1 per share. Underwriter—Jacquin, Stanley & Co., New York. Proceeds—To reduced
loans, for improvements, new equipment and working
capital.
Calif.
Sattler's, Inc., Buffalo, N. Y. (4/9-14)
200,000 shares of common stock (par $1)*
Price—To be supplied by amendment.
Underwriter—.,,
Hornblower & Weeks, New York. Proceeds—To Charles
Hahn, Jr., President, who is the selling stockholder. Ex-*
pected week of April 9.
"V--,
*
March 22 filed
•
Scudder, Stevens & Clark Common Stock Fund,
Inc.
March
21
common
writer—Barrett
Peabody Coal Co.
(4/17)
$6,000,000
sinking fund
debentures due
April 1, 1966. Price — To be supplied by amendment.
Underwriter—Halsey, Stuart & Co. Inc., Chicago, 111.
construction.
Peabody Coal Co.
filed
160,000
(4/17)
shares of 5!/2%
—To
Frederic
•
Chemical
Co., Inc.
>
March 20 (letter of notification) 3,900 shares of capital
stock (no par).
Price—$10 per share.
Underwriter—
Proceeds—For
144,
working capital.
Haven, Pa.
Lock
Pepsi-Cola
Bottling Co.
Address—P. O.
Van
March
D. C.,
&
Co., Washington, D. C. Proceeds—To
to Samuel Schwartzman, the selling stockholder.
Piedmont Natural Gas Co., Inc. (3/30)
Feb. 20 filed 125,000 shares of common stock (par
to be offered to common stockholders at rate of
Price—$4.50
Inc.
per
pire
$1)
share.
York
(jointly);
Lehman
Brothers;
Harriman
J latter for preferred only).
$2,425,000 of 2%%
bonds
and
the
Ripley & Co.,
Proceeds—To retire
remainder
to
retire
4% % preferred stock of New England. Statement
effec¬
tive March 6.
Bids—No bids were received for either
issue
on
March
20.
New
Hampshire Fire Insurance Co.
#
March 5 filed 75,000 shares of
capital stock (par $10) be¬
ing offered to stockholders of record March
26, 1951, at
rate of one share for each
four shares
held; rights will
Price—$37 per share. Under¬
Corp., New York. Proceeds—
increase capital and
surplus.
expire
on
April 10, 1951.
writer—The First Boston
To
North American
Acceptance Corp. (4/2)
March 20 (letter of
notification) 15,000 shares of 60-cent
cumulative convertible preferred stock
(par $5). Price
$10 per share. Underwriter—Michael
Investment Co.,
Inc., Providence, R. I. Proceeds—For
working capital.
Oklahoma Gas & Electric Co.
(4/5)
March 5 filed 215,380 shares of
common stock (par
$10)
to be offered to common
stockholders of record April 5
1951 at rate of one share
for each 10 shares
?v^rsuAscription privilege;
April 24.
Standard
Gas
&
rights
Electric
are
Co.
held, with
to expire on
is
entitled
purchase
to
121,009 shares and plans to purchase
any of
the remaining
94,371 shares not subscribed for
by other
stockholders.
Price—To be supplied
by amendment.
Underwriter—None.
Proceeds—For
construction
gram.
pro¬
t
.
stock.
common
White,
Weld
balance
due
&
to
Price—$52
Co.,
Duke
no
value)
par
and
New
per
York.
unit.
Underwriter—
Proceeds—To repay
Power
Co., repay letter of credit
and
temporary bank borrowings, cover cost of con¬
struction, purchase of gas properties in Anderson, S. C.,
and for working capital.
•
Pioneer
Fund, Inc.,
12
York, N. Y.
Proceeds—For investment.
basis
of
Valentine
&
to be offered to
York
Potomac
2
filed
Edison Co.
Co., Columbia, S. C.
(letter of notification) 5,000 shares of common
(par $10) being offered to stockholders of record
March
15
(with
basis of
on
one
share for each
oversubscription
an
April 15.
Price—$20
provide
Address—P.
O.
Box
State
privilege);
share.
additional
$10,000,000 first mortgage and collateral
Stuart
&
Co.
Halsey,
Inc.; W. C. Langley & Co. and The First
Boston Corp. (jointly); Kidder,
Peabody & Co. and Alex
Brown & Sons (jointly);
Glore, Forgan & Co.; Salomon
Bros. &
Hutzler; Harriman Ripley & Co., Inc., and Union
(jointly); Lehman Brothers; Equitable
Securities Corp.
Securities Corp.;
Drexel & Co. Proceeds—From sale of
bonds, together with proceeds from sale of 200,000 shares
of
common
stock to West Penn Electric Co.
$4,000,000, will be used for expansion
To be received up to 11 a.m.
of The West Penn Electric
York 4, N. Y.
(EST)
on
(parent) for
program.
Bids—
April 3 at office
Co., 50 Broad
Street, New
•
Public Service Co. of Oklahoma
(4/16)
March 12 filed $10,000,000 of first
mortgage bonds, series
shares held
expire
on
Mines
Ltd.
and
surplus,
C.
(Canada)
Nov. 30 filed 560,000 shares of capital stock.
($1
par
per
Price—At
share). Underwriter-Optionee—Robert Irwin
Proceeds—For
Southern Co.
commissions, explora¬
and working capital.
(4/3)
March 2 filed 1,000,000 shares of common stock (par
$5),
Underwriters—To be determined by competitive bidding.
bidders: Morgan Stanley & Co.,
Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Union Securities Corp. and Equitable Securi¬
(jointly); Blyth & Co., Inc.; Lehman Brothers;
ties Corp.
Ripley
&
Co.,
Inc. Proceeds—To purchase
following subsidiaries—Alabama
Co., Georgia Power Co., Gulf Power Co. and
Mississippi Co.—who will use the funds for construction
common
trust bonds due April 1, 1981. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
capital
1199, Columbia, S.
Uranium
10
rights
Underwriter—None,
per
Proceeds—To
Harriman
(4/3)
com¬
stockhold¬
27, N. Y.
Probable
March
common
South Carolina Insurance
—To
Offering—
New York
16,599 shares of
28, 1951, at rate of one share for
held; rights to expire April 18, 1951-
shares
Martin of Toronto.
to erect plant and install equipment.
Expected week of April 9.
five
March
record
ten
Co.,
tion and development expenses,
tures
each
Price—$15 per share. Underwriter—None. Proceeds—>
For working capital. Office—611 West 129th
Street, New
March 15 filed
be supplied by amendment.
Underwriters—H. M.
Byllesby & Co., Inc., Chicago, 111., and P. W. Brooks &
Co., Inc., New York.
Proceeds—To redeem 5% deben¬
for
purposes/ Office—781 Fifth Avenue, New
(4/9-14)
$1,500,000 of 6% sinking fund debentures,
series A, due April 1, 1963 (with 7-year warrants to pur¬
chase 150,000 shares of common stock attached).
Price
Plywood, Inc., Detroit, Mich.
share
one
(letter of notification)
South
$2.50).
Underwriter—Gammack & Co., New
on
stock (no par)
of
Boston, Mass.
March 23 filed 100,000 shares of capital stock
(par
Price—At market.
7
oversubscription privilege); rights to ex¬
March 30. Price—$10 per share. Underwriter—
an
Sinclair
March
stock
common
com¬
Underwriter—None.
22, N. Y.
each
(3/30)
filed $1,900,000 of 5%% interim
(payable at maturity in 38,000 shares of
of
125,000 shares of
share.
per
Yr
Inc.
Proceeds—For working capital and used for gen¬
stock
shares
March
(with
on
one
(amendment)
$2.75 cumulative preferred stock of
Mines,
Corp., New York.
(letter of notification) 13,214 shares of common
(par 100) being offered to common stockholders
None.
ers
1953
Price—$1
eral corporate
operate six lateral pipe lines.
Co.,
Gold
(letter of notification)
record
To construct and
notes due
14
March 7
mon
Gas
103 Park Avenue, New York, N.
or
develop mine and build plants and mills.
Office—405 No. 149th Street, Seattle 33, Wash.
j
r
Underwriter—White, Weld & Co., New York. Proceeds—
Natural
working capital and to
Office—11400 East Nine Mile Road,,
Consolidated
stock.
mon
of
(letter of notification) 50,000 shares of common
(par 10 cents). Price—40 cents per share. Under¬
Piedmont
selling
Proceeds—To
held
•
the
Proceeds—For
Dyke, Mich.,
Seven
Feb. 20
March 23
Proceeds—
is
/
writer—None.
stock
shares held.
who
Inc., Van Dyke, Mich.
March 19 (letter of notification) 225,000 shares of com¬
mon
stock
(par $1). Price—$1.25 per share.
Under¬
stock
share for each 21/g
New York.
Sherneth
of Washington,
Inc.
go
Co.,
President,
Seal-Peel,
•
Pedlow-Neasc
&
Mann,
ceeds—For construction program.
•
investment.
stockholder.
Feb. 28
Inc.
Herrick
R.
retire indebtedness.
(par $25).
Proceeds—For
Container
prior preferred
Price—To be supplied by amendment.
Underwriter—A. C. Allyn & Co., Inc., Chicago, 111. Pro¬
stock
(no par).
Underwriter^—Scudder Fund Distrib¬
Corp.
(letter of notification) 12,000 shares of class A
stock (par $1).
Price—$5.50 per share. Under¬
March 1
of
by com¬
petition biddnig. Probable bidders: The First Boston
Corp.; Kidder, Peabody & Co. and White, Weld & Co.
80,000 shares of capital stock
utors, Inc., Boston, Mass.
(no par).
to be offered
filed
•
26
(par $1), of which 40,000
publicly offered at par*
ceeds—To
Seaboard
March
be
and 10,000 shares of com-'
suppliers and distributors in units of one share
at $6.75 per unit and 6,000 shares of
preferred'
suppliers and distributors at $5 per share.
Under¬
($1 per share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill
In Mexico and for general corporate purposes.
new
-r»
each
par
filed
'
to
mon
(par $1) to be offered
in units of $50 principal amount of notes and one share
are
preferred are to
shares of preferred
Price—At market.
26'
stock
common
of
Pan-American Milling Co., Las Vegas, Nev.
Jan. 24 filed 200,000 shares of common stock. Price—-At
March
Bids—Tentatively expect¬
April 16.
on
Pyramid Electric Co., Jersey City, N. J. (4/3K
March 27 (letter of
notification) 56,000 shares of 6%'
cumulative convertible preferred stock
(par $5)' and
38,000
for subscription by common stockholders of
New Eng¬
land Gas & Electric Association
(parent) at rate of one
New Hampshire share for each 12 New
England common
shares held.
Underwriter—To be determined
construction.
new
received
•
Hampshire Electric Co.
Jan. 25 filed 15,000 shares of
$4.50 cumulative preferred
stock (par $100) and 140,000 shares of common
stock
Of the latter, 129,367 shares
Securities Corp. (jointly); Salo-'
Hutzler; Harriman Ripley & Co., Inc. Pro-?
•
Stendel
writer—Ferris
(par $1).
Distributor—Broad
and
City,
stock and
Un¬
Underwriter—None.
(par $1)
National Investors Corp., New York
March 19 filed 400,000 shares of
capital stock
Underwriter
Oklahoma
Inc.,
eight held; rights to expire
Box
stock
•
Price—At market.
100%.
Corp., Santa Barbara, Cal.
March 5 (letter of notification) 1,212,200 shares of non¬
assessable stock (par $1) being offered to stockholders
in
one
Price—At
certain capital
share.
per
Palmer
exchange for 22,884 shares of National
Supply Co. stock in ratio of three shares of
Mortar &
Edwards,
Office—212 East
Price—$28
None.
Gypsum Co., Buffalo, N. Y.
filed
retire
•
March 9 filed 215,709 shares of capital stock to be offered
to common stockholders of record March 30 in ratio of
one share for each five shares held.
Price—At par ($100
derwriter—None.
J.
Proceeds—To
Proceeds—For
(3/30)
per
derwriter—R.
1961-1971.
effective March 22.
(4/10)
April 1, 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; Kidder, Peabody & Co.; Merrill
bank
bonds due
For further
Power
States
6%
to
of
13.
Palestine Economic Corp., New York
Feb. 15 filed 200,000 shares of common stock
Proceeds—To Gordon
R. Kay, the selling stockholder.
Co. and Union
Bros. &
common
Cushing, Okla.
(letter of notification) $50,000 of first mortgage
itruction.
(letter of notification) 100,000 shares of'common
(par 10 cents). Price—60 cents per share. Under¬
Mountain
March
jerial
Feb. 21
writer—Lasser Bros., New York.
of
Pact Gas Co.,
parent, will be used for property additions and improve¬
by Monongahela and its subsidiaries.
Morton Oil Co., Casper,
Loeb &
mon
ed
shares
additional
(par $25)
Jan. 8
ments
stock
& Electric Co.
1,419,562
being offered to common stockholders
of record on March 13, 1951, on the basis of one share
for each seven shares held (with an oversubscription
privilege); rights to expire on April 4, 1951.
Price—
$31 per share. Underwriter — Blyth & Co., Inc., New
York. Proceeds—To be applied toward new construction,
estimated to cost $130,000,000 in 1951.
Statement effec¬
Securities
First
filed
21
/
1
C, due April 1, 1981. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey,
Stuar^
& Co. Inc.; Glore, Forgan &
Co.; White, Weld & Co. ancf
Shields & Co. (jointly); The First Boston
Corp.; Kuhn,'
ceeds—For
Racific Gas
•
"
'
*
•
stock
of
the
Power
Bids—To be received up to 11:30 a.m. (EST)
April 3 at company's office, 20 Pine St., New York,
expenses.
on
Statement effective
N. Y.
Southern
March 21.
Industries
Corp., Mobile, Ala.
(letter of notification) 2,000 shares of common
stock. Price—At par $100 per share. Underwriter—None.
Feb.
15
Proceeds—For
additional working capital for subsidi¬
particularly Ewin Engineering Corp. Office —
Waterman Bldg., Mobile, Ala.
aries,
Standard-Thomson
March
12
shares of
(letter
of
Corp.
notification)
approximately 13,750
common stock (par $1).
Price—At the market
(approximately $7 per share). Underwriters—Lee Higginson Corp., Carreau & Co. and Reich & Co., New York.
Proceeds—To four selling stockholders.„
Volume 173
Number 4998
.
.
The Commercial and Financial Chronicle
.
State Bond &
Mortgage Co., New Ulm, Minn.
$1,500,000 of accumulative savings certifi¬
cates, series 1207-A at $95.76 per $100 principal amount
$2,000,000 from $5,400,000, the company's principal stock¬
Feb. 5 filed
holder
and
maining 135,000 shares.
middle of April.
$15,000,000 of accumulative savings certificates, se¬
ries 1217-A at $85.68 per $100
writer—None.
principal amount.
Under¬
Business—Investment.
the proceeds
from the sale of the
Offering—Expected around the
rights to expire April 11. Price—$24.10
cents per share.
Under¬
development.
mine
of
6%
basis
on
writers—The
March 13
fered. to
stock
share).
Price—At
Underwriter—None.
capital.
•
stockholders.
Office—14256
($1
par
per
working
Proceeds—For
Wyoming Ave., Detroit, Mich.
Supreme Sunrise Food Exchange, Inc.
March 23 (letter of notification) 54,500 shares of com¬
*
stock
mon
$1).
(par
Price—$5.50
Under¬
share.
per
writer—Childs, Jeffries & Thorndike, Inc., Boston, Mass.
Proceeds—For working capital and expansion program.
Office—Lawson
N.
away,
•
Avenue
and
Main
Street,
East
Rock-
Y.
Talisman
Mining & Leasing Co.
March 16 (letter of notification) 500,000 shares of com¬
stock
mon
tal
(plus
bonus of fully paid participating capi¬
a
certificates
refunding
based
production
on
in
an
amount equivalent to the sum invested in common stock
by
each subscriber), with no subscriptions for stock to
accepted for less than 500 shares.
Price—15 cents
Ibe
Underwriter—None.
share.
per
mill
for
and
other
Proceeds—To
improvements.
develop
Office—730
Peyton
Building, Spokane 8, Wash.
Telegift, Inc., New York (5/1)
(letter of notification) 60,000 shares of com¬
stock
mon
Underwriter
Price—$2 per share.
(par SI).
Proceeds—To
—None.
establish
and
operate a
"Gifts-
foy-Wire" service to be known as the Telegift Service,
for
and
operating capital.
17, N. Y,
Office—40 East 49th Street,
New York
March
filed
7
(4/3)
Transmission Co.
Gas
Tennessee
100,000
shares
preferred
cumulative
of
and 400,000 shares of common stock
(par $5). Price—To be supplied by amendment. Under¬
writers—Stone & Webster Securities Corp. and White,
stock
(par $100)
Weld & Co., New York.
for expansion
and
•
Proceeds—To repay bank loan*
of pipeline.
Texas
Fund, Inc., Houston, Tex.
March 26 filed 300,000 shares of common stock (par $1).
Price—At the market. Underwriter—Bradschamp & Co.,
Thompson
March
filed
14
Products, Inc. (4/4)
$15,000,000 of 20-year
debentures
due
April 1, 1971.
Price—To be supplied by amendment.
•Underwriters—Smith, Barney & Co. and Shields & Co.,
'both of New York, and McDonald & Co., Cleveland, O.
Proceeds—To
repay
•
23
basis of
on
one
Products,
Inc.
Robert
W.
share for each eight held; rights to
on
Trailmobile
15
None,
1the
of
(4/6)
cumulative
Baird
&
Co.,
•
Wisconsin
Power &
Proceeds
—
For
property
Light Co.
(4/6)
record
April 2, 1951, on basis of one share for eachr
held, for a 16-day standby. Unsubscribed shares
to be offered to employees.
Price — To be supplied by
20 shares
amendment.
W.
Underwriters
Baird
&
Co.,
—
Inc.
Co., Cincinnati, Ohio
(letter of notification) 3,000 shares of common
(par $5). Price—At the Market. Underwriter—
but Bear, Stearns & Co., New York, will offer
shares
for
seller
the
on
the
New
York
Smith, Barney
Proceeds
—
Co. and
&
For
property
Wisconsin Power & Light Co. (4/17)
March 23 filed $4,000,000 of first
mortgage
art & Co. Inc.; The First Boston
Corp.; Salomon Bros. &
Hutzler; Glore, Forgan & Co..; Smith, Barney & Co.;
White, Weld & Co. and Kidder, Peabod.y & Co. (jointly);
Securities
Proceeds
Corp.;
Equitable
For construction
—
Securities
program.
Bids
—
Corp.
Expected
March
5
filed
$12,000,000 of first mortgage bonds,
series B, due March 1, 1981. Underwriters—May be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane; Kidder, Peabody & Co.;
First
Boston
Corp.;
Harriman
Ripley
&
Co.
Inc.
None.
'retail
par).
Price—$50 per share.
Underwriter—
Proceeds—To purchase merchandise for resale to
working
*West Pershing Road, Chicago, 111.
*•
druggists and
Office—2321
capital.
for
United Wholesale Druggists of Pittsburgh,
Inc.
March 22 (letter of notification) 1,175 shares of capital
stock (no paP).
Price—$50 per share.* Underwriter—
-None.
Proceeds—For purchase of merchandise for re¬
sale to retail druggists and for working capital.
Offer¬
ing—Expected on April 2. Office—6543 Penn Avenue,
!
Pittsburgh, Pa.
r
•
Van Lake
Uranium Co., Van Dyke,
Mich.
March 23 filed 500,000 shares of common stock.
Price—
'At
par ($1 per share).
Underwriter—None. Proceeds—
To develop dranium deposits in the Montreal River area
4n Algoma, Ontario, Canada.
[r*
(4/4)
March 12 filed 200,000 shares of common stock
Price—To
be
supplied
by
amendment.
(par $5).
Underwriter—
Smith, Barney & Co., New York. Proceeds—To John E.
Barney, President, the selling stockholder.
Vulcan
Iron Works,
Wilkes-Barre, Pa.
Jan. 30 (letter of notification) not to exceed 30,000 shares
of
common
stock
(par
50
cents).
Price
—
At
market
April 3 at company's office, 441 Stuart St., Boston 16,
Mass.
Alabama Power Co.
(9/11)
Feb.
6, it was stated that
company contemplates issuance
and
sale
first
of
$10,000,000
mortgage
bonds.
Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley
& Co.; Blyth & Co., Inc.; Harriman Ripley &
Shields & Co. and Salomon Bros. & Hutzler
Co., Inc.;
(jointly);
Co.; Union Securities Corp. and Equitable Se¬
Corp. (jointly); Kidder, Peabody & Co.; The
First Boston Corp.; Lehman Brothers. Proceeds—For ex¬
pansion program.
Bids—Tentatively expected to be
opened on Sept. 11. Registration—About Aug. 10.
curities
Algonquin Gas Transmission Co.
planned to finance the project through sale of 20-year
bonds (with interest to be about 3V2%, equal to 75% of
its capital and sale of common stock in an amount equal
to
25%
of
185,000 shares
to be
used
to
reduce bank
loans to
to
be
offferfed
first
underwriter: Dillon, Read
to
stockholders.
Traditional
& Co. Inc., New York.
Appalachian Electric Power Co.
Feb. 5 it
stated the company
was
plans to issue and sell
bonds in May or
by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Union Securities Corp. (jointly);
The First Boston Corp.; Harriman Ripley &
Co., Inc.
Proceeds—For property expansion and improvements,
on which
company may expend up to $90,000,000 during
about
$18,000,000
June.
Underwriters—To
of
first
on
on
proposal to increase the authorized
a
preferred
from
stock
100,000 to 150,000
Previous preferred stock financing was handled
private' placement through Union Securities Corp.
and Smith, Barney & Co.
Boston
Jan.
30,
Edison
J.
V.
Co.
Toner,
plans to
pany
President, announced that com¬
$32,000,000 of securities to aid in
issue
financing its construction
will
program, which, it estimated,
$65,300,000 through 1954. He added that no
stock financing is planned until 1955.
cost
common
Jan.
25
(A. M.)
L.
Co.
F.
Rains, President, revealed that the com¬
pany is considering a plan to refinance its 7% cumula¬
tive
participating preferred stock - (par $100), about
50,000 shares outstanding. These shares are redeemable
at 110 and accrued
exchange
dividends.
Holders may be offered in
new convertible preferred stock, plus com¬
Company being advised by Blyth & Co., Inc.,
a
stock.
mon
and Fahnestock & Co.
to
Natural Gas
Corp., Charlotte, N. C.
application was filed with the
authority to build a natural gas pipeline system
fourth amended
a
SEC for
certain
serve
areas
in North and South Carolina. Esti¬
mated cost of the proposed facilities is $3,595,295, to be
financed by the sale of first' mortgage bonds and the
issuance of junior securities.
R. S. Dickson & Co.,
23
it
Underwriters may include
Charlotte, N. C.
Central & South West
Corp.
announced
was
company plans to increase
(par $5) from 8,000,000 to 10,000,000 shares and offer additional common stock to com¬
authorized
stock
common
stockholders. Underwriters—May be determined by
Arkansas
Feb.
1
it
was
determined
Gas
Co.
be
First Boston
used
new
to
Corp. and Lazard Freres & Co.
(jointly);
Union Securities Corp.; Smith, Barney & Co.; Equitable
Securities Corp.
•
Arkansas Natural Gas Corp.
Dec.
sell
Gas Co.
Gas
'
'
System, Inc.
7 it was reported that corporation may issue and
$35,000,000 of new securities in the Spring or early
Probable bidders for debentures: Halsey, Stuart
Inc.; Morgan, Stanley & Co.; Kuhn, Loeb & Co.:
Salomon
Bros.
& Hutzler;
Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly). Probable bidders for common stock, in event
summer.
&
Co.
of
competitive bidding: Morgan Stanley & Co.; Goldman,
Mer¬
Brothers;
Shields & Co. and R. W. Pressprich & Co. (jointly).
Proceeds will be used for expansion program.
Sachs & Co. and Union Securities Corp. (jointly);
rill Lynch, Pierce, Fenner & Beane; Lehman
Columbus
&
Southern
Ohio
Electric
Co.
Feb. 19, J. B. Poston, Chairman and President, announced
contemplates
issuance and sale of additional
during the first half of 1951. If compet¬
itive, probable bidders may include Dillon, Read & Co.,
Inc.; Lehman Brothers and Kidder, Peabody & Co.
(jointly); The First Boston Corp.Proceeds—For expan¬
company
stock
common
sion program.
Commonwealth
Jan.
10
it
securities.
Edison
announced
was
$181,000,000
additional
Co.
the
financing
has
debentures:
or
been
company
financing
Neither the nature
bonds
nor
determined.
through
contemplates
the sale of
the time of
Probable
the
bidders
new
for
Halsey, Stuart & Co. Inc.; The
Corp.; Glore, Forgan & Co.; Morgan Stanley
First Boston
Proceeds
to be used for construction program.
are
Consolidated Edison Co. of New York, Inc. (5/1)
March 23 the corporation disclosed it is seeking permis¬
sion
For each share of 6%
preferred stock there will be issued in exchange $10.60
par value of 3%%
preferred stock. Unexchanged 6%
of
New
York
P.
S.
Commission to
issue
and
sell
refunding mortgage bonds,
G, due May 1, 1951, and $25,000,000 of first and
refunding mortgage bonds, series H, due May 1, 1981.
Underwriters—To be determined by'competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Proceeds—From
sale of series G bonds to be used to finance part of the
company's construction program scheduled to cost $104,600,000. From sale of series H bonds to redeem $25,000,$40,000,000
of
first
and
series
000
20 company applied to SEC for approval'of plan
split into two companies, viz: Arkansas Natural Gas
Corp. (into which Arkansas Fuel Co. will be merged);
and Arkansas Louisiana
part of their construction program.
a
Columbia
•
announced
$27,500,000
to
to finance
& Co.
Louisiana
company plans issuance and
first mortgage 3% bonds, the pro¬
repay bank loans ($20,125,000 at
Nov. 30, 1949), to retire $3,500,000 funded debt incurred
in 1950 and for construction program. The sale of these
bonds is contingent upon approval by SEC of Arkansas
Natural Gas Corp.'s plan to split itself into two new
companies. Probable bidders: Halsey, Stuart & Co. Inc.;
ceeds
bidding.
Probable bidders:
Blyth & Co.,
Inc.; Smith, Barney & Co. and Harriman Ripley & Co.,
Inc. (jointly); Lehman Brothers and Lazard Freres & Co.
(jointly); Kuhn, Loeb & Co.; Carl M. Loeb, Rhoades &
Co.; Ladenburg, Thalmann & Co. and Wertheim & Co.
(jointly).'' Proceeds—To be used to assist subsidiaries
mortgage
be
the next three years.
to
—
cumulative
competitive
•
(4/17)
March 26 filed 320,000 shares of common stock (par $1).
Price
To be supplied by amendment. Underwriter —
F. Eberstadt & Co., Inc., New York. Proceeds—From sale
April 10 vote
mon
March
Warner-Hudnut, Inc.
Proceeds
Atlantic City Electric Co.
Jan. 29, it was announced that the stockholders will
•
Underwriter—Straus & Blosser,
Proceeds—To John A. Roberts, Chairman
of the Board, who is the selling stockholder.
(about $3 per share).
Chicago, 111.
tentative plans call for the raising
an offer of additional com¬
l-for-10 basis held around May or June.
a
part, construction expenditures,
which, it is estimated, will total about $5,400,000 in 1951.
March
repay bank loans and advances and for
construction. Bids—To be received up to noon
(EST)
sale of
Vanity Fair Mills, Inc., Reading, Pa.
on
Probable underwriter: Union Securities
Corp.
be used to pay, in
Proceeds—To
Massachusetts,. Rhode Island, Connecticut and New Jer¬
sey, which, it is estimated, will cost $30,477,800.
It is
(no
stated
$2,250,000 through
will
new
on
City Electric Co.
was
stock
mon
Feb. 20
(4/3)
-withdrawn.
stock
Atlantic
Jan. 15 it
of about
Carolina
County Electric Co.
Feb. 27 FPC authorized company to construct a
pipe line
system in New England to supply certain markets in
Druggists of Chicago, Inc.
March 20 (letter of notification) 665 shares of preferred
000,000 in 1951.
about April 17.
Worcester
Corp.; White, Weld & Co. Proceeds—
estimated to cost about $20,-
For construction
program,
Byers
bonds, series
E, due April 1, 1981. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
over-the¬
United Wholesale
The First Boston
•
-counter market. Proceeds—To George M. Bunker, Presi¬
dent, the selling stockholder. This offering has been
•
bonds, probably in late
summer or
early fall. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers and Stone &
Webster
Securities Corp.
(jointly); Equitable Securities Corp. and
Central Republic Co.
(jointly); Union Securities Corp.;
additions and improvements.
Union
Light Co.
by
March 23 filed 96,069 shares of common stock
(par $10),
to be offered for subscription
by common stockholders
of
&
shares.
Drexel &
-purposes.
stock
Light Co.
Prospective Offerings
—
'Feb.
&
shares
Inc.
additions and improvements.
(4/4)
common stock (par $5)
stockholders of record April 3
common
new
10,000
bank loans and for general corpo¬
April 17. Price—To be supplied by amend¬
ment. Underwriters—Smith, Barney & Co. and Shields
•& Co., New York, and McDonald & Co., Cleveland, O.
Proceeds
For working capital and general corporate
expire
Power
filed
preferred
stock (par $100), to be offered for
subscription by pre¬
ferred stockholders of record April
2, subject to allot¬
ment in case of oversubscription. .Price—To be
supplied
by amendment. Underwriters—Smith, Barney & Co. and
[March 14 filed 131,190 shares of
to be offered to
share. Under¬
Services, Inc., Ft. Worth, Tex.
(letter of notification) 2,000 shares of common
Wisconsin
March
Power
was reported that the
company will sell $8,000,additional first mortgage
000
(no
rate purposes.
Thompson
per
First Boston
par). Price — At the market (estimated at
$24.50 per share). Underwriter—Barron McCulloch, Ft.
Worth, Texas. Proceeds — To Willis H. Thompson, the
selling stockholder.
The
Proceeds—For investment.
Houston, Tex.
share
one
Welex Jet
Robert
March 20
(no par),
Corp., New York, and John¬
ston, Lemon & Co., Washington, D. C: Proceeds—To re¬
pay short-term debt and for construction program.
non^cumulative convertible preferred stock (convertible
into common stock (par $1) share-for share) now of¬
common
stock
stockholders of record March 27,
for each five shares
held;
common
of
publicly.
Feb. 6 it
common
stock'(par 10 cents). Price—15
1951
41
preferred stock will be redeemed at $10.60 per share, and
any of the unissued 3%% preferred stock may be offered
Arkansas
122,400 shares of
to be offered to
Proceeds—For
re¬
Washington Gas Light Co.
March 8 filed
(
Superdraulic Corp., Detroit, Mich.
Feb. 23 (letter of notification) 100,000 shares
4
receive
to
•
Summit Queen Mining Co.
March 15 (letter of notification) 75,000 shares of capital
writer—None.
;
(1365)
Westchester
Lighting
Co.
3 xk %
general
mortgage
bonds due 1967.
•
Consolidated
it
Natural
Gas
Co.
(5/14)
March
13
pected
of $50,000,000 25-year sinking fund debentures.
was
reported that early registration is ex¬
Continued
on
page
42
42
(1366)
The Commercial and Financial
Chronicle
Continued from page 41
V
•
/
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
&
Co.
Honolulu
(Territory of Hawaii)
provement bonds, all to mature
construction program.
1980, inclusive,
•
May 14.
Detroit Edison Co.
March
19
it
Idaho
announced
was
$35,000,000 of first
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Coffin & Burr, Inc., and Spencer Trask & Co.
(jointly); Morgan Stanley & Co.; The First Boston Corp.;
Dillon, Read & Co. Inc. Proceeds
For construction
this Fall.
program.
cost
Denver & Rio Grande Western RR.
March 16 company applied to the ICC for
treasury funds, to redeem $35,062,200 outstanding
March 21
Edison
amended
an
Utilities Associates
plan of reorganization of Eastern
was
filed
with
SEC
which
provides
for the acquisition by this
company (organized on Feb. 16,
1951, as Eastern Edison Electric Co.) of the properties
bidders:
of
new
Smith,
to
corporation will issue and sell to the public $28,000,000
$12,500,000 of preferred stock and obtain a
$3,500,000 bank loan (for construction purposes). Prob¬
(jointly). Probable bidders for common stock: Lehman
Brothers; Glore, Forgan & Co.; Harriman Ripley & Co.,
of bonds and
able bidders:
Halsey, Stuart & Co. Inc. (for bonds only);
Brothers; Estabrook & Co. and Stone & Webster
Securities Corp. (jointly);
Glore, Forgan & Co. and Harriman Ripley &
Co., Inc. (jointly). Proceeds would be
used to retire bonds, preferred stock
and bank debt of
Lehman
subsidiaries
and
the
remainder
used
for
construction
program.
•
Eastern Utilities Associates
See Eastern Edison Co. above.
'
Englander, Inc.
Feb. 19, it was reported to be
contemplating new financ¬
ing. Underwriter—Glore, Forgan & Co.,
Chicago, 111.
Florida
Feb. 13 it
was
March 29
on
announced common stockholders will
vote
a
proposal to increase the authorized com¬
mon stock (par
$7.50) from 1,600,000 to 2,500,000 shares
and the authorized
preferred stock (par $100) from 120,000 to 250,000 shares.
Underwriters for preferred stock
to be determined
by competitive bidding. Probable bid¬
ders may include Kidder,
Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Salomon Bros.
&
Hutzler; Harriman Ripley & Co., Inc.; Equitable Secur¬
Corp.; Union Securities Corp. Probable under¬
ities
writers for
stock. Kidder,
Peabody & Co. and
Pierce, Fenner & Beane.
common
Merrill Lynch,
Foote Mineral Co.
Feb. 15 stockholders approved
stock from
common
for the payment of
increase in authorized
200% stock dividend on the
57,995
par $2.50.
G. H. Chambers, Vice-
a
outstanding shares,
President, stated that the company is committed
policy of expansion. "This," he said, "will
require
to
a
more
money, and the directors later this
year may seek some
form of new
capital."
Georgia Power Co.
Jan.
8
it
was
$20,000,000 of
Traditional
underwriter—Esta¬
Expected this Spring.
(6/5)
reported company may issue and sell
first mortgage bonds. Underwriters—
new
To be determined
by competitive bidding.
ders: Halsey, Stuart & Co.
Inc.; Morgan
Drexel & Co.; Lehman
Co.
Inc.; Shields &
Brothers;
Co.
and
Probable bid¬
Stanley & Co.;
Harriman Ripley &
Salomon
Bros.
&
Hutzler
(jointly); Blyth & Co., Inc. and Kidder,
Peabody & Co.
(jointly); The First Boston Corp.;
Kuhn, Loeb & Co.;
Union
Securities
(jointly).
Corp. and Equitable
Proceeds—For construction
Tentatively expected
to
be
opened
on
Securities
program.
June
5.
tration—Scheduled for April 4.
Corp
Bids—
Regis¬
Green Mountain Power
Corp., Montpelier, Vt.
Feb. 23 amendment to
plan for reorganization was filed.
This plan,
among other things, provides for
sale of
104,094 shares of new common stock
(par $10) through
underwriters, subject to the right of present
preferred
stockholders to subscribe for the
new shares.
Greenwich Gas Co.
March
13
4
it
&
nam
vote
was
announced
Co.,
Boston,
Mass.
Proceeds—To
loans and for
working capital.
retire
.6, it
was reported that this company
may sell se¬
new
money" this year. In event of
preferred
curities ' for
issue, probable bidders may be
Kidder, Peabody &
Co. and
White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; Union
Securities Corp. and Salomon
Bros. &
Hutzler (jointly); Harriman
Ripley & Co., Inc. Bui
definite plans have not as
yet been formulated.
spent up to Dec.
the
serious
is giving
of its out¬
company
consideration to early
refinancing
standing $19,000,000 3V2% bonds due Feb. 1, 1965, and
$6,500,000 31/2% bonds due Dec. 1, 1965, through the is¬
of
suance
possibly $28,000,000 of
new
bonds.
Probable
bidders: Halsey,
Stuart & Co. Inc.; Goldman, Sachs &
Co.; White, Weld & Co.; Lehman Brothers and Merrill
Lynch, Pierce, Fenner & Beane (jointly).
Feb.
15
FPC
Pipe Line Co., Cleveland, Ohio
authorized this company to
acquire, con¬
struct and operate pipeline facilities
which will carry
natural gas into northeastern Ohio
for the first time.
Financing plan includes the issuance and sale of
$1,075,000 in bonds to Stranahan, Harris & Co.,. Inc.,
Toledo, O., $225,000 in preferred stock and
$150,000 in
common
stock.
20
000
277,583
Cement
stockholders
common
shares.
stock
Although
increase
March 13 it
was
New
Feb.
immediate
issuance
of
the
ferred
stockholders will vote April 2
common
stock from
500,000
authorized
par) to 1,000,000 shares
(par
$12.50).
The
stock
ized
contemplated."
Minneapolis-Honeywell Regulator
March
27
For
—
and
1951
construction program.
early Fall.
it
announced
was
an
stock
authorizing
that
stockholders
will
vote
issue of cumulative pre¬
which may be offered in
exchange for the
a new
resent
$36,056,700 of $6 preferred stock. Probable bidBlyth & Co., Inc.; Smith, Barney & Co.
ers:
•
Ohio
March
sell
Edison
19
Co.
150,000
shares
(5/2)
sought SEC
company
of
a
new
authority to issue and
series
of
preferred
stock
common
stock
(par $8)
to
be offered for subscription
by common stockholders
May 2, 1951, on the basis of one share for each 10 shares
held, with an oversubscription privilege. Price—To be
named by the company. Underwriters—To be
determined
by competitive bidding.
Probable bidders for preferred
stock: Morgan
Stanley & Co.; Lehman Brothers and Bear,
(jointly); W. C. Langley & Co.; Glore,
Forgan & Co., and White, Weld & Co. (jointly); The
First Boston Corp. Probable bidders for common
stock:
Stearns
&
Co.
Lehman Brothers and Bear, Stearns & Co.
(jointly); First
Boston Corp.; Lazard Freres &
Co.; Union Securities
Corp., and Wertheim & Co. (jointly); Glore, Forgan &
Co., and White, Weld & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Morgan Stanley & Co. Proceeds—For exoansion
on
Bids—To
program.
or
Ohio
received
at
11
(EST)
a.m.
v
Match Co.
March
13
April 3
on
ferred
be
about May 2.
it
was
reported that stockholders will vote
authorizing an issue of 100,000 shares of pre¬
(par $10), in addition to splitting; up the
stock
stock
on
a
Dec. 20 D. S.
sidering
Gas
5-for-l basis.
&
x
,
Co.
?
Kennedy, President, said
refunding
is
con¬
$6,500,000 5Y4% cumu¬
(par $100) with an equal amount
stock with
issue additional
company
outstanding
lative preferred stock
of preferred
Electric
common
a
lower dividend rate and may
stock
(par $10) provided
mar¬
ket conditions warrant such
action, to finance construc¬
Probable underwriters: Lehman
Brothers;
Smith, Barney & Co.; Harriman Ripley & Co. Inc.
stockholders
increased
Pennsylvania Electric Co.
■
Feb.
16 it was reported
company plans to issue and sell
$3,000,000 of first mortgage bonds, $2,500,000 of preferred
stock and
$2,500,000 of
common stock (latter to General
parent). Underwriter—To be de¬
termined by competitive bidding. Probable
bidders for
bonds: Halsey, Stuart & Co.
Inc.; Kidder, Peabody &
Public Utilities Corp.,
Co.;
Scott Corp.
announced
management says "no issuance of
any additional shares
now
Proceeds
York, Chicago & St. Louis RR.
23,
March 29
the
estimated, will cost $500,000.
increasing
(no
stock to General Public Util¬
,
increase
to
(no par) from 250,000 to 500,-
no
Merritt-Chapman &
shares
Co.
voted
shares is planned, the
company may
capital in connection with its expansion
program, which, it is
on
Co.;
unissued
need additional
common
tion program.
Portland
the
authorized
$1,500,000 of
</
an
Co.; Kidder, Peabody &
Medusa
Jersey Power & Light Co.
it
Oklahoma
Smith, Barney & Co.
•
mort->
■
in the number of common
shares is in prospect to assist
in financing construction.
These shares will be first
offered to stockholders. How much
stock will be issued
has not yet been determined.
Probable bidders may in¬
clude W. C.
Langley &
March
construct
estimated cost of $1,-
was reported that company
tentatively plans
issue and sell $2,500,000 of preferred stock to
public
common
Long Island Lighting Co.
Jan. 31, Edward F.
Barrett, President, said
Co.
authorized
preference
by 50,000 shares to 160,000 shares and the author¬
stock to 3,440,000 shares from
3,300,000
common
shares.
bank
Gulf Power Co.
Feb.
stock
likely
company will sell additional mortgage bonds
time this year to finance its
1951 construction re¬
quirements. During the current fiscal
year, he said,
about $10,000,000
may be spent for new construction, of
which more than
$4,000,000 had been
•
that
appears
the
that
an
Lynch, Pierce, Fenner & Beane: W. C. Langley
Expected late Summer
some
stated
pipeline, at
(par $100) and 436,224 shares of
30, R. W. Otto, President, stated it
Coldwater,
to
England Power Co.
& Hutzler.
Laclede Gas Co.
^
on
';v.
bonds in the spring of 1951 (this is in addition to
sale of 10,950 shares of
$5 •'cumulative preferred
stock (no par) at $105
per share plus accrued dividends
and 133,812 shares of common
stock (par $5) at $15
pei
share (the latter to common
stockholders). The bond
financing early last year was placed
privately through
Central Republic Co.
(Inc.), Chicago, 111. The proceeds
are to be used for the
company's expansion program.
also
authority
Corp., parent. Underwriters—For preferred to be"
determined by competitive
bidding. Probable bidders:.
Drexel & Co., Kuhn, Loeb &
Co., and Lehman Brothers
(jointly); W. C. Langley & Co.; Smith, Barney & Co.
and Union Securities
Corp. (jointly); Kidder, Peabody
& Co. and White, Weld & Co.
(jointly); Salomon Bros.
gage
was
Michigan,
FPC
ities
recent
31, 1950. It
sought
Proceeds to be used to repay bank loans and for
19
and
Kansas-Nebraska Natural Gas
Co., Inc.
15, it was announced that company
plans to raise
$4,200,000 through the sale of debentures or first mort¬
that
of
was
New
Feb.
is
stockholders will on
authorizing the issuance and sale to
common stockholders of
60,000 shares of common stock
(no par). Price—$5 per share.
Underwriter—F. L. Put¬
April
:,t
Co.
construction program.
and Stern Bros. & Co.
Inc.
Lake Shore
an
100,000 to 300,000 shares to provide
brook & Co., New York.
(jointly); Union Securities Corp.
Jan.
Power Corp.
Merrill
-(jointly);
Corp.; White,
Co., Fall River Electric
Light Co. and Montaup Electric Co. and all the securities
Blackstone Valley Gas & Electric Co. The
surviving
of
.
be
& Co.
bonds.
&
^
Co.
estimated that $32,000,000 of new
financing
required prior to Dec. 31, 1952 (including the
$12,000,000 of bonds filed with SEC). Between 70,000 to
80,000 shares of preferred stock may be initially offered.
Probable bidders: Harriman
Ripley & Co. Inc.; Lehman
Brothers; Kidder, Peabody & Co.; First Boston Corp.;.
will
Feb.
Weld
Regis--
;
.
company
New
securities, including from $5,000,000
Barney & Co.; The First Boston
Co., Shields & Co. and Central Republic Co
(jointly); Harriman Ripley & Co., Inc.; Salomon Bros. &
Hutzler and Merrill
Lynch, Pierce, Fenner & Beane
and business of Brockton Edison
6
Jan. 24 it
Halsey,
preferred
and
;
500,000, to be financed by issuance and sale of first
bonds.
to $8.stock, and the remainder common
Probable bidders for preferred stock:
Glore, Forgan & Co. and W. C. Langley & Co.
000,000
stock
July 17.
gage
Kansas City Power & Light Co.
Feb. 7, Harry B. Munsell,
President, announced company
expects to raise $15,000,000 of new
money through the
sale
Co.
(4/19)
First Boston Corp.
first mortgage 3%-4%
bonds, series A, and $8,666,900 of
& Salt Lake income
mortgage 3%-4% bonds,
both due Jan. 1, 1993.
Denver
Eastern
March
to be received on April 19
Stuart & Co. Inc.; Harriman
Ripley & Co., Inc. and Lehman Brothers
(jointly); Har¬
ris, Hall & Co. (Inc.);4 Salomon Bros. &
Hutzler; The
Probable
Bids—
program.on
15.
Utilities
Utilities
Michigan
Bids—Tentatively scheduled
Underwriters—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Kuhn, Loeb & Co. Proceeds — Together
•
National
about 76.7 miles of
RR.
June
construction.
Feb., 13, it was reported
company expected to raise $6,800,000 through the sale of equipment trust certificates
authority to
$40,000,000 of first mortgage bonds, series B,
dated May 1, 1951, and to mature
May 1, 1981.
issue and sell
with
Central
construction
be received
for
Montana-Dakota
Thursday, March 29, 1951*
authority to issue and sell
$3,000,000 of first mortgage bonds due April
1, 1976;'
$2,000,000 of serial notes due $100,000
annually from
April 1, 1952 to 1971, inclusive, and
230,000 shares of
common
stock
(par $5). Traditional underwriters arc
Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner &
Beane, New York. Proceeds will be used to repay bank
loans ($5,800,000 in
December, last) and to finance new*
Power Co.
Illinois
*
...
March 24 company asked FPC
April 1, from 1956 to
nearly $23,000,000 for 1951.
•
be
•
through sale of mortgage
bonds and preferred stock. Bond
financing may be pri¬
vate, while preferred stock may be underwritten by
Wegener & Daly Corp., Boise, Idaho. Proceeds would go
toward expansion program,
which, it is estimated, will
—
to
on
Proceeds—For
tration—Scheduled
Feb. 6, it was reported that this
company will raise $18,500,000 through sale of securities this year. It is believed
that this financing will be
plans to sell ap¬
mortgage bonds early
company
proximately
Beane.
Tentatively expected to
Broadway, New York, N. Y., until 2 p.m. (EST) on
April 3 for the purchase of $1,700,000 bonds, to be dated
April 1, 1951, viz: $700,000 flood control bonds, $500,000
public improvement bonds and $500,000 public park im¬
Paine, Webber, Jackson & Curtis (jointly);
Dillon, Read & Co. Inc.; Blyth & Co., Inc.; The First Bos¬
ton Corp.; Morgan
Stanley & Co. Proceeds—To finance
on
:
165
and
Bids—To be received
(4/3):
Bids will be received at the Chemical Bank & Trust
Co.,
.
Mississippi Power Co. (7/17)
Feb. 6, it was reported that this
company contemplates
the issuance and sale of
$4,000,000 of preferred stock
(par $100). Underwriters—To be determined
by competi¬
tive bidding. Probable bidders:
W. C. Langley &
Co.,
Glore, Forgan & Co. and Sterne, Agee & Leach (jointly);
Blyth & Co., Inc.; The First Boston
Corp.; Kidder, Pea¬
body & Co. and White, Weld & Co.
(jointly); Lehman
Brothers; Union Securities Corp. and Equitable Securi¬
ties Corp.
(jointly); Merrill Lynch, Pierce, Fenner &
Merrill Lynch, Pierce, Fenner &
Beane; Union Securities
Corp. and White, Weld & Co. (jointly); Equitable Secur¬
ities Corp.; The First Boston Corp.;
Kuhn,. Loeb & Co.,
Lehman
Brothers and Drexel & Co.
(jointly); Harriman
Ripley & Co., Inc. Probable bidders for preferred stock:
W. C. Langley & Co. and
Glore, Forgan & Co. (jointly);
Kuhn, Loeb & Co.; Smith, Barney & Co.; Kidder, Pea¬
body & Co.;
For
or
1951
Harriman, Ripley & Co., Inc.
construction
program.
Proceeds—
Expected late Summer
early Fall.
Public Service Co. of Colorado
Nov. 1, J. E. Loiseau, President, announced that "it
will
be necessary to raise additional funds for
construction
in
purposes
the
second
needed is estimated
ders
for
at
quarter
of
1951.
about $7,000,000."
The
amount
Probable bid¬
reported issue of $15,000,000 new bonds are:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and Smith*
Barney & Co. (jointly); The First Boston Corp.; Lehman
a
Brothers; Kidder, Peabody & Co.; Harris, Hall & Co.
(Inc.): Glore, Forgan & Co. and W. C, Langley & Co.
(jointly).
/
Number 4998
Volume 173
The Commercial and
.
system
applied to the New
March 21 company
subscription by common
(the latter for
York P. S. Com¬
stockholders on a
shares held). Bonds
may be placed privately, with the common stock issue
underwritten by The First Boston Corp. Proceeds—For
new
(1) For bonds: Halsey, Stuart & Co. Inc.;
Peabody & Co.; Lehman Brothers, and Bear,
Stearns & Co. (jointly); White, Weld & Co.; Salomon
Bros. & Hutzler; First Boston Corp., and Blyth & Co.,
Inc. (jointly); Union Securities Corp., and Smith, Bar¬
ney & Co. (jointly); and (2) for stock: Blyth & Co. Inc.;
W. C. Langley & Co., and Glore, Forgan & Co. (jointly);
Union Securities Corp., and Smith, Barney & Co. (joint¬
able bidders:
Ten¬
Kosciusko, Miss., through Alabama,
Kidder,
connection with Texas
Eastern's existing system near Connellsville, Pa.
The
company's financing program includes the sale of $78,000,000 first mortgage bonds (to be placed privately), the
replacing of a $10,000,000 bank loan with a new bank
loan of $20,000,000, and the sale Of $45,000,000 of pre¬
ferred stock, $20,000,000 of which already has been sold.
Traditional underwriter for preferred stock: Dillon, Read
authority to issue $5,000,000 of first mortgage
and 150,000 additional shares of common stock
basis of one new
near
Kentucky, and Ohio to a
nessee,
mission for
bonds
(1367) 43
Financial Chronicle
Electric Co.
Rochester Gas &
•
.
.
share for each seven
construction.
Lehman
ly);
&
Fenner
Steel Corp.
Sharon
•
.
the debt limit of
$15,000,000 and to in¬
crease
2,500,000 from 1,000,000
shares. At present, the company has 925,863 shares out¬
standing. The company's expansion plan, recently announced, will sharply increase ingot capacity, pig iron
and coke output and finishing facilities.
The additions
and improvements are to be completed over the next
March 27 stockholders
-
voted to increase
funds, to its subsidiary, United
of $150,000,000 to be used for
the latter's construction program. Probable bidders for
bonds: Halsey, Stuart & Co. Inc.; Dillon, Read & Co. Inc.;
(4/3)
Southern Pacific Co.
of
Lehman
27
Transmission Corp.
Eastern
Texas
Feb.
which will increase
feet to approximately 1,206,500,000
This project, it is estimated will cost $96,cubic
465,700,000
cubic feet.
approximately 791 miles of pipeline
connection with United Gas Corp.'s
a
underwriting firms who
Larger
task of set¬
bid for new is¬
securities find themselves
ting up groups to
sues
of
with
added
an
cause
for
And they put
these days.
a
as
consequence
woe
this one
of the
-
..
....
given issue and
the theory that every¬
arising as such
The
"drop-outs"
DIVIDEND NOTICE
and
I
203rd
CORPORATION
A
STOUT, Secretary.
|
|
|
|
dividend of twenty cents
Detroit, Michigan
*
Prior
Preferred
i
5,
1951.
W.
J.
Trustees
COMMON SHARES
j
|
j
|
of the Associa-
|
I
March 22, 1951.
MOORE, JR.,
r\
n
©
New York
1
n
has declared a
share on the 7,400,000
close of business
April 6, 1951.
The transfer books
in connection
on
The
qucrterly
a
will not he
with the payment
closed
of this
THOS. A
dividend.
KENNETH C. BELL
Vice President
close
busi¬
of
Checks will be mailed.
JOHN
E.
McDERMOTT,
Secretary.
Treasurer
GOOD/tEAR
SOUTHERN
Iron
NOTICE
declared today the
STATES
Roofing Company
SAVANNAH, GEORGIA
of Directors
fol¬
for the
second
Dividend
of 1951 upon the $5
Stock, payable
June 15, 1951 to stockhold¬
ers of record at the close of
business May 15,
per
Common
directors
One
business May 15,
on
Preferred Stock
payable on May 15, 1951,
tq^tockholders of record at the
pany,
1951.
the Preferred
r-
The
Name
March 22, 1951
in Rubber
and Cashier
illll!lll5
one-quarter
per
share
on
Stock of this
has been declared,
April 2, 1951, to
stockholders of record March
company
Tire & Rubber
Greatest
Secretary
quarterly dividend of
thirty-one and
cents (31.25c)
1951.
Co.
By W. D. Shilts, Secretary
Akron, Ohio, March 26, 1951
The Goodyear
Twenty-five cents (25<4) per share
on the capital stock of the Com¬
A
1951.
share upon the
Stock, payable
June 15, 1951 to stockhold¬
ers of record at the close of
declared a regular
cash dividend of
Dollar ($1.00) per share
an extra
cash dividend of
business April 16,
the
at
May 1, 1951.
Preferred
15
E. E. Duvall,
payable on May
stockholders of
to
CLARK
semi-annual
clbse of
ness
dividend of
March 22, 1951.
quarter
has this day
and
the out¬
stockholders of record
April 11, 1951. The transfer
$1.25 per share
Plaza
N. Y.
board of
on
books will not close.
$1.00
dividend of
share
of
cents
lowing dividends:
GAS
Dividend No.
of
1, 1951, to
I
|
j
|
record
de¬
share on the outstanding
Common Stock, payable on May
|
COMPANY
Bank of the City of
per
dividend
a
one-half
and
1951,
50c per
has
shares of
the capital stock of the Bank, payable
May 1, 1951 to holders of record at the
40c per
HEW YORK
clared
j
CONSOLIDATED
NOTICE
DIVIDEND
The Chase National
#
declared
(12V20)
Directors has
Board of
The Board
New York 20.
THE CITY OF
Treasurer
Directors
of
Company
has
NOT
DIVIDEND
I
dividend of
and one-half cents
share, and an extra
dividend of two and one-half
cents (214c) per share, on the
30 Rockefeller
NATIONAL BANK
Board
NATIONAL DISTILLERS
22,
j
NATURAL
OF
The
PRODUCTS
DIVIDEND
Preferred
May 1, 1951, to stockthe close of haziness
CHASE
DIVIDEND NOTICES
Company,
declared
have
twenty-two
(22Zic) per
MATTHEWS, Jr., Treasurer.
THE
activities.
Wentworth Manufacturing
The
1
has beeii de¬
Stock of said
^world-wide banking
Jersey
standing common stock of the
Stock
per share
struction
in the investment
DIVIDEND NOTICES
DIVIDEND
the regular quarterly
H. C.
Secretary
-
NO. 16
COMMON DIVIDEND
tion, both payable April 16, 1951
to shareholders of record at the
close of business March 30,1951.
|
|
.
Company, payable on
hoiders
of
record at
April
|
I
Sheldon F. Hall,
March 26, 1951'
dividend of $1.25
clared
on
the Prior
of the cur¬
indication
Another
rent uncertainty
England Gas
Electric Association
The
CONSECUTIVE CASH
11, 1951.
1951.
AMERICAN ZINC, LEAD AND
SMELTING COMPANY
when
developed
carrying forward of current con¬
Utility Defers Sale
evidently it did
New
($.20) a
14 Wall Street, New York
share
has been declared upon the
A
dividend of fifteen
cents (15c) per stock of BURROUGHS ADDING
share .has been declared this day on the
MACHINE COMPANY, payable
capita* stock of the Corporation payable
June / 9,
1951, to shareholders of
April 14, 1951 to stockholders of record
at the close of business April 2, 1951.
, record at the close of business May
A
ceding column.)
twelve
as
JOSEPH S.
mon
CORPORATION
DIVIDEND
22,
First Boston Corp.
(See also registration of 122,400 shares of com¬
stock under "Securities in Registration" in a pre¬
(jointly).
.
OIVIDEND NOTICES
March
White, Weld & Co. (joint¬
ly); W. C. Langley & Co. and The
market
Well, it was in
hut
it, is suffering
NATIONAL SHARES
Halsey, Stuart & Co. Inc.; Blyth & Co.,
tendency
and EXTRA
--
during 1951- and apply the
construction program. Probable bid¬
Inc.; Smith, Barney & Co. and
during 1951 pro¬
ap¬
"spread out pretty
occur.;
one observer
at the moment
from an attack of what he calls
"drop-itis." In a word you go
through the job of setting up a
business,
The
sees
thereof)
combination
some
proceeds toward its
to issue and
to bid for a
slack
uncertainty.
For the: present, at least, they
find it is not safe to count too
fully on the initial set-up of a
current market
■.markets.
loans (or
ders for bonds:
several respects,
not provide
Touch of Indigestion
the full answer. When the com¬
At least a part of the rising pany registered the bonds, it set
trend in "drop-outs" is ascribed a maximum interest rate of 2 %%.
given group. Syndicate managers to the backing up of most new This did hot hold, the change in
-Lave been finding this out the debt issues in the last month, but
.hard, way particularly during the,'••in greater measure it appears a
DIVIDEND NOTICES
last fortnight, or since the period consequence of the sharp setbacks
of most severe adjustment in the in government and municipal is¬
Treasury
and
municipal bond sues.
'••
down
issue
its parent, United Gas Corp
announced company
Tentatively planned for
has been to conditions forcing a revision so
Central Power & Light Co., put
that the bonds were sold as 3Hs.
thin" in trading
off
opening of bids for
small
proceed on
Four
bids were received, the
such issues, and with the market
amounts of new bonds and pre¬
thing is set.
quite definitely in a real adjust¬ highest for 100.80467. The next bid ferred stock.
But you suddenly find that this
$1,000 less
ment, people who have pursued was only $1.10 per
The company received only one
is not exactly the case. Invariably,
the
third
bid
was
only
such a course now find a portion while
as
the deadline draws near, a of their capital tied-up.
about $3.60 per $1,000 under. The bid
each
for
the
$1,500,000 of
number of the original members
set a reoffering bonds and $4,000,000 of new pre¬
And what really irks is the lack winning group
of the group are either reducing
price of 101.467 for a yield of
of really definite indications that
ferred, and returned both un¬
their
commitments or dropping
the
adjustment has been com¬ 3.05%, making the issue attrac¬
opened.
out altogether. This action, it is
tive against the market.
pleted.
Officials stated it had concluded
pointed out, is not limited, by any
But there was no indicated rush
means, to the "little fellows," but
No Rush for Consumers 3V&S
that effective competitive bidding
to buy the issue. Eastern institu¬
embraces some of their more hefty
The investment fraternity, by tions appeared aloof, temporarily
is not possible when only one bid
brethern as well.
and large, looked upon Tuesday's
at least, while inquiries from the
is submitted. Since the funds are
Consequently, in organizing a bidding
for
Consumers Power
syndicate these days, the sponsor¬ Co.'s $40,000,000 of new 30-year West indicated that about a third not immediately needed, it was
that
the
ing firm or firms must be pre¬ first mortgage bonds as a likely of the total would be taken up in stated
postponement
pared to step in and take up any test of the new order of things.
would not upset in any way the
that area.
group
normally take on the
it was
—
proximately $9,000,000 of bonds or obtain bank
sell 200,000 shares of common stock
and estimated $10,000,000 of first mortgage bonds. Underwriters—To be determined by competitive bidding. Prob¬
poses
305,118, and includes
extending from
8
March
Offering
program.
Washington Gas Light Co.
Co.
Power & Light
Utah
&
March 8 it was announced that company may
(which see above).
authorized to construct facilities
the daily capacity of its system by
was
company
out an expan¬
construction by
Company will finance
$111,861,749.
Stone
—
Corp., New York. Proceeds—For con¬
June.
construction of approx¬
of pipeline, at a total estimated cost
borrowing $150,000,000 from
Underwriter
conditions.
other
Webster Securities
which will include
imately 1,000 miles
Ripley & Co. Inc. and
Bros. & Hutzler; Harriman
Brothers (jointly).
mon
authorized company to carry
sion program,
Price—To be determined by
shares held.
10
and
struction
Feb. 27 FPC
$12,000,000 equipment trust certifi¬
cates, series EE, to mature in 15 equal annual instal¬
ments. Probable bidders Halsey, Stuart & Co. Inc.; Salo-
York
t
market
Co., Shreveport, La.
United Gas Pipe Line
165 Broadway, New
the company,
purchase from
6, N. Y., of
the
each
for
Corp,
(EST) on April 3 for
received up to noon
Bids will be
approximately 450,000 shares of additional common
stock to common stockholders at rate of one new share
of
Harriman Ripley & Co. Inc.
& Co. (jointly); The First Boston
Goldman, Sachs
and
tentative plans for the sale
March 6 directors announced
Line Co. a total
Equitable Securities Corp.;
five years.
*
Virginia Electric & Power Co.
other
with
gether
Gas Pipe
additional construction funds.
loans and to provide
plans to issue $145,and will loan the proceeds, to¬
000,000 debt securities
company
Beane
and
Co.,
&
announced company
Feb. 27 it was
to $30,000,000 from
authorized capital stock to
the
Corp.
United Gas
Stearns & Co. (jointly);
Merrill Lynch, Pierce,
(jointly). Proceeds — To repay bank
Bear,
&
Bros.
Peabody
Kidder,
Inc., New York.
& Co.
payable
on
20, 1951.
Ross G.
Secretary and
Allen
Treasurer
MW«wrwr«mNttiMKi1hW«4|S
44
«&
*
The Commercial and Financial Chronicle
(1368)
.
Thursday,. March 2d, 1951
.
.
V#
»
BUSINESS BUZZ
Reports Slower Rate I
Of Gain in
Savings
Bank Deposits
Washington...
Behind-the-Scene Interpretations
/J fl g~w
from the Nation's Capital
d\lf
is\JL
jlJl I
Deposits,
in
the
nation's
529
savings banks increased
$2,000,000 during February, 1951,
JL C/ IMj
,
mutual
to reach
WASHINGTON,
C.—It
D.
take
a
still
longer for it to
will
long time for it to sink in,
be admitted
by officials, BUT—the wise boys
are coming to the conclusion that
the only
way
anything can be
done with the present mess of in¬
flation control is to wipe all the
off
rules
present
blackboard and
fresh start.
after
"
entirely
*
President
has
given forth with his recommenda¬
tions
the
for
Defense
currently
its life
Act
Production
with
the
extension
meantime,
businesses
millions
the
individuals
and
of one
another will have to
or
tinue
of
live with
to
official
con¬
propa¬
of
DPA,
on
soon
as
the
ex¬
as
any
necessity
hearings
charm
of
of
the
As¬
hair-pulling contest.
sociation
it
Mutual
*t
*t
ings.
As
practically everybody
it, there can't be any
sees
inflation
an
until
most
here
kind
control
program
people want
it. After
to
one's
on
With
self.
than
needed, as it is seen
here, is either a new crisis of
major magnitude which will get
up
reasonable to doubt that Truman,
anti-inflation
moribund,
control
exhortations
the
and
the threats will continue for many
It
weeks.
the
The
will not be abandoned.
While
tion between and among pressure
will give the present
in¬
flation control program little more
than a few more gasping breaths,
that
and
Certain
military ex¬
penditures for its fiscal year 195152. This figure includes domestic
military, military assistance
to
foreign countries, and even such
words,
it
to
$50
is
It
the
the
impossible
practically
at
Labor
demands
veto
a
of
operation of the mobilization
thepro¬
its "greater voice equal to
gram,
industry's."
take
Labor
through
just
Congress
that.
a
won't
that
demands
stabilization
wage
eighteenth
to
continuous
upward
ad¬
justment. Even if the present
trollers
will
gress
sure
new
swallow
it
not
making
into
DPA. Labor demands
will
limitations
Aci.
it,
fastened
skirt
of
the
Congress
con¬
Con¬
one,
regurgitate
is
which
up
that
the
a
set¬
around
the
Taft-Hartley
double
darn
well
won't take that.
S.
is
of
the
at
has
$1.7
productive
population
The
is
just
self to raise
active
to
with
one-twelfth.
committed
duty
of
for
the
U.
S.
mitted
impairment
farmers
as
flation.
Even
should
if
propose
prices
in
that the
than
a means
the
to
of
market
prices
to
limiting in¬
Mr.
Truman
subsidize food
British
consumer
the
of
manner
so
would pay less
this will
scarcely be sufficient to mollify
labor, and so long as they have
the political power to swing it,
the farm crowd is going to insist
on taking its
price in the market
place, if you please.
So
and
be
the crucial issues of price
wage control there seems to
on
basis
no
slate
price,
that
Burnet
for
writing
will
work.
Rhett
a
clean
Senator
Maybank, Banking
DPA "Watchdog" Committee
Chairman, bitten by klieglightTV bug, is going on a hunt
early
in April to see if he can't turn up
and
some
kind of juicy scandal in the
approval
celerated
From
of certificates
amortization.
this
^Watchdog"
little
and
for
ac¬
diversion, the
Banking com¬
not
no
tration
mits
Administration
on
labor, mainstay of its
Finally,
the
of
the
to
con¬
aw¬
public health.
U.
how
S.
simply
as
and
A
do
measured
USPHS
terribly
are
ridden
nation,
mistake
at
i
some
the
$240
a
made
clear
a
to
the
very
ex¬
full
since
couple of
Five
program
involves
Federal
program
million
$460 million local program,
a
but
all
that
is
money
why
years away,
million
Also
there
low
ad¬
are
its
not
going
on
there
a
the
is
control
dollars
is
Senate
over
was
prospective
no
U.
month
witnessed
a
a
loans
and
$13,000,000
securities, while holdings
Governments
S.
fell
$8,283,000,000
assets.
This
is
$109,-
now
stand
36.8% of total
or
the
highest
pro-'
portion since 1942.
A. M. I., Inc.
worry.
all
they
told
that
case.
up a plan of staff and operations.
When the plan has been approved
USPltS,
is
no
long
then the county gets
health
money.
so
the county operates it
according to USPHS dic¬
Although opposing
aid
health
politically
is
as
measures
almost
as
N.
Y.
Security Dealers
Association
Tel.: HAnover 2-7064 Tele: NY 1-2171
52 Wall
Street, New York 5, N. Y.
to-
it.
(R., 111.) led the fight against
'
■
Under
a
For
being against mother
love and in favor of sin, 35 Sena¬
tors voted against this program
to 38 for it. Senator Everett Dirk-
curious
J ■■■,
lV':
jurisdictional
Large Appreciation Potential
WE
CLASS
B
A
merce
Committee rather than the
In
Labor
Committee,
California.
in the Sen¬
ate, gets this bill. It is anticipated
that the House
as
will kill this pro¬
(This column is intended to
re¬
pretation from the nation's Capital
be
and may or may not coincide with
the "Chronicle's"
own
views.)
(common) STOCK
leading producer of cement
fast-growing
Southern
Analysis of this Company and
a
review of the
try
position.
SUGGEST
RIVERSIDE CEMENT CO.
quirk, the House Interstate Com¬
disease-
where.
Philadelphia-Baltimore
Exchange
Stock
classical
flect'the "behind the scene" intern
a
Claybaugh & Co.
Members
tates.
broke
must
Blaii F.
There
Federal control involved
as
freely
Inquiries
The
public health officer draws
the Federal
We Invite
Federal
available
on
Cement Indus¬
request.
Selling about
$12*25
LERNER & CO.
Investment
Securities
10 Post Office Square, Boston 9, Mast.
Tel. HUbbard 2-1990
IV
Ottawa got re-enacted war powers
to control inflation and prices, but
its
officials
have
shown
position to operate these
Actually
deliberately
the
the
Allied Electric
powers.
Canadians
chosen
dis¬
no
FIRM TRADING MARKETS
have
path
of
.
limited effort but
as
great
FOREIGN
SECURITIES
able, acute stress
The
omy.
upon
basic
the
econ¬
argument
of
Senator Robert A. Taft is that the
U.
S.
could
not
stand
the
Administration without
Prospectus
request
FOREIGN SECURITIES SPECIALISTS
caus¬
50 BROAD STREET...NEW YORK
4, N. Y.
Hili, Thompson & Co., Inc.
TEL HANOVER 2-0050... TELETYPE: NY 1-971
Trading Department
ing serious economic and political
strains.
The
Canadians
have
chosen the cautious course.
on
P.ARL MARKS & HO. INC.
effort
of the size projected by the Tru¬
man
Products
as pos¬
sible short of inducing an inevit¬
70 WALL
Tel.
wtutamm
in
further
local governmental
a
activity involved in this
local
sen
adequate county public
Service,
power.
Administration
able
local
told the
were
paying death claims
control
wage
S.
great proportion of the
companies
than the Truman Adminis¬
impose
U.
standards, and if all the insurance
more
can
True,
and
by
by standards of the U. S. Public
upon
power,
up
more.
installations,
Health
impose conscription
violently anti-conscription
Quebec, mainstay of the party in
can
about
have
health
115,000 men will be
put into uniform. That is because
Federal
two-thirds
truth
counties
when
Canada's
the
belt, not being
its
very, very
3,500,000. Furthermore, there is a
definite target date for the U. S.,
to
bill setting
deal,
The Senators
ful
of
June 30, and it is being achieved.
In Canada there is no date com¬
a
tribution, would get
115,000 men comes
1,380,000, which compares
target
pass
the
barefoot
afford
115,000.
times
a
suc¬
New York would get less and the
it¬
total manpower on
service
Twelve
out
a
has
It is impossible to imagine per¬
suading the farm bloc consenting
•„
any
of
the
balances.
000,000. Mortgage loans
thing,
only
$5
million
budgeted by Mr. Truman
being
Service,
most
Treasury would provide one-third
of the cost of operating county
public health services throughout
the
entire
U. S.,
the counties
two-thirds. This would be only a
national
average,
however, be¬
cause
the filthy rich states like
one-eighteenth
U. S., its
about
Dominion
of the
one
Washington, got the Senate to
Under
the
as
deposits
want—now.
activities, county by county.
60% of the U. S. effort, in
While Canada is
new
as
sav¬
for the first year of its operation.
„
comparative terms.
as
a
entirely brand new program of
Federal aid to local public health
the Canadian
spending
are
passed
an
the
times
18
runs
just barely
one-
of
it
cessful of the bureaucratic lobbies
$30.6 billion. Thus,
Canadians
about
is
output
So
economy.
effort
which
of Canada's
it
that
the
when
The U. S. Public Health
comparable
which
in
billion would place
war
commitments,
'
economy
also
was
Senate that this is not
local health aid bill.
year
measure
It
adopted
is, not merely to econ¬
omize, but to keep from expand¬
ing permanent, annual, "do-good"
other
Administration
The official
board it shall subject "wage con¬
trol"
strictly
billion a
has
difficult it
Hottentots
In
is
Truman
U.
the
to
provides.
undertaken.
this point
to conjure up any ac¬
ceptable form of new wage and
price control legislation.
aid
Canada
dicate to them that any where in
sight is that fresh start.
h
IV"
"Point
Canada
Although the House will prob¬
ably kill Ui2j project, the Senate
recently gave another of those re¬
curring demonstrations of how
The
$1,700,000,000 of all
as
must
available here.
become
such
school
$108,000,000 in holdings of
in other
pensive
Dominion is projecting a total of
entirely fresh start
be made, that does not in¬
an
war
effect,
the Taft program.
of the
some
Canadian
the
In
in¬
figures of
effort, which
Congressmen were
terested in
for
month
mortgage
this
morning, Sir—'Commercial and
Financial Chronicle,' The New York
'Times,' 'Wall
Street Journal' or 'Superman'?"
brand
a
be
at
have
that
think
observers
probably
no
patching
or
politically-compromising medica¬
groups
months, is
more
it
military crisis.
new
probable that until
of anti-inflation con¬
begins really to stink, the
of trying to make it work
pose
few
a
"What shall
so
is
Corpse
trol
for
and
though
decrease
rise of
3^.
what is called for,
after the hair-pulling has gone on
program,
Even
regular deposit
threats to
punish Acheson & Co., will ever consent
them if they don't watch out.
to a curtailment of the military
the
program is
accounts,
clubs
regular
net
point where inflationary
will be reduced. It is
a
pressures
Livingston Kelley
accounts during Feb¬
totaled nearly $400,000,000,
they were exceeded slightly by
withdrawals, so that there was a
by
potentially
regular
ings.
in
A.
de¬
other
ruary
both
scared
and
again, or a cut-back
everybody
the
although
en¬
in
posits
So what is
gram
For
for
Christmas
how they should sacrifice for the
benefit of the public weal, and
oc¬
tirely
kick about the high cost
in the military preparedness pro¬
uncertainty
curred
danger
of living.
to
en c e
Savings, Prov¬
idence, R. I.
The
gain oc-
finally dissipated, this turned into
a
Banks,
President,
Institution
there was a great clamor
something about controls,
do
even
of
Sav¬
Provid
in Korea,
steamed
continued
and
the shock of reverses last summer
don't
casioned
dent
National
a
■
Livingston
Kelley, Presi¬
The
seam.
ganda drives against them if they
behave; patriotic lectures on
according to
A.
DPA will have all the
certificates
on
$20,049,000,000 at the close
the month,
of
same,
scandal is worked out of the
simply
caught with price ceiling
kind
con¬
beyond June 30.
the
In
of
made in
changes to be
much the
are
slip into hearings
pay
of
will begin to per¬
the
will
tension
statutory
an
-
This prospect
colate
the
make
mittees, which
STREET, N. Y. 5
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