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ESTABLISHED 1S39
1ke
Commercial^
Financial
Chronicle
Re*. U. 8. Pat. Office
Volume
Number
181
5408
New York 7, N. Y.,
Price 40
Thursday, March 3, 1955
Cents
Copy
a
EDITORIAL
A Defense of the
We See It
As
The
so-called
ator
a
Act of 1954 and the FHA
Fulbright "study" of the stock
market and its recent behavior is
Prominent
ing board for discontents and others seeking to
by attacking Wall Street,
garner votes
themselves go
off the track,
about
dramatic
come
not germane
it
as
matters
which
to the matter in hand, very serious
bracket.
of
little
Part of the ebullience of the
at
least
does
to
as
subject
Facing the Builder."
is
the
the subject which
because
time
every
mortgage
standpoint
but
lender
the
degree.
some
else
who
has
lender
is
is
it
as
That
is
So
is
the
work
it
is
by
builder
a
physical output of goods and services
Physi¬
cal expansion is based upon investment in capital goods.
And capital goods are used to turn
has
problem,
is the basis for the rise in the standard of living.
a
too.
on
the
problem
and
the
the
of
at
ices.
least
Zummo
problems
everybody
this
of
essential
so
that
other's
all
we
problems
has
from
summed
the
there
tion.
He
most
up
standpoint
his
of
The
or
builder's
the
one
told
me
problem Mr. Zummo did not
builders
are
it
acutely
Continued
on
men¬
of
page
PICTURES
the
DEALERS
*A
statement
prepared by Mr. Johnson for
at
the Conference of Group V of the Savings
Brooklyn, N. Y., Feb. 25, 1955.
a
panel
Banks
42
State and
industries,
Municipal
•
telephone:
Bankers
to
the
Government
BONDS
Burma, Aden, Kenya,
Uganda,
CORN EXCHANGE
land
£4,562,500
Paid-Up
Fund
Reserve
30 BROAD
and
banking
ST., N.Y.
Trusteeships
also
Exchange,
Cotton
OF NEW YORK /
of
exchange business.
and Executorships
undertaken
Chicago
Miami
NY 1-708
ol
Net
To
•
Detroit
Geneva,
•
|
r
TO REMEMBER IN THE
!.
•
T.L. Watson&Co.
Active
Maintained
Markets
Dealers, Banks
and
^eutkwtdt
CANADIAN
i
50
BROADWAY
Commission
FIRST
<S0ilUlW€4t COMPANY 1
WIRES TO
• Tvler
1
MEMBERS
115
NEW
BROADWAY
NEW YORK
BANK
NATIONAL
Cal.
OP THE
CITY
OF NEW
YORK
Switzerland
Holland
Warrants expiring
Public Service Co.
15, 1955
All
At Regular Rates
of New
Hampshire
May 3, 1955
COMMON
We
offer
Warrants
to
at
buy
the
above
the
current
Rights
and
market.
Dominion Securities
MONTREAL AND TORONTO
Grporation
Goodbody & Co.
Established 1832
On
CHASE
Gables
Beverly Hills,
Imperial Bank of Canada
Teletype NY 1-2270
DIRECT
Dallas
I Abilene • Plainview • San Antonio
Executed
THE
"Highlights"
upon
request
DEPARTMENT
CANADIAN
Members N. Y. Stock Exchange
I
Orders
Canadian Exchanges
NEW YORK 4, N. Y.
Bond Department
Canadian Bank of Commerce
Brokers
SECURITIES
|
Inc.
Trade
Pittsburgh
Coral
•
•
Rights expiring March
rirst
Bonds
exchanges
Amsterdam,
T\
38
Analysts
Municipal
Exchange Bldg.
4, N. Y.
Beach
Hollywood, Fla.
Bond Dept. Teletype:
page
Investment
YORK
NEW
£3,104,687
The Bank conducts every description
DEPARTMENT
N. Y.
the
1955.
Exchange
other
and
£2,851,562
Capital
Capital
before
New Orleans Cotton Exchange
THE NATIONAL CITY BANK
Protectorate.
Authorized
BANK
Grodinsky
phenome-
on
Exchange
Tanganyika,
Zanzibar, and Somali-
Dr.
Exchange
Board
Chicago
St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
This
State and
Cottoti
Commodity
End
at
of
Stock
York
New
serv¬
or
1856
Stock
York
American
13,
CHEMICAL
by
Members
New
London, E. C. 2.
(London)
Branch:
IIAnover 2-3700
proportionately.
H. Hentz & Co,
in
Kenya Colony and Uganda
Head Office:
26
Bishopsgate,
West
BOND
address
*An
IN THIS ISSUE—Candid shots taken at the Annual Mid-Winter Dinner
INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA appear
in the Pictorial Section starting on page 25.
of india, limited
than
more
Continued
Established
Securities
rapidly,
as the population,
income, the national
national
Society of Chicago, Chicago, 111., Feb. 24,
STATE AND MUNICIPAL
or
crease,
Association,
national bank
those
are
of goods
more
rapidly,
as
discussion
in
U. S. Government,
production
lation and the standard of living in¬
the demands upon the growing industry expand
porportionately, indeed in a large number of growing
it,
aware
essen¬
product, or some other comparable
economic time series. As the popur
less degree.
Julius Grodinsky
is
growing industries
expand
least
industry.
own
greater
a
the
is
smooth
functioning of
production-disiribution
mech¬
whose
of
con¬
serv¬
dustries.
all
and
investor's dollar
the
of
consumers
And an extremely large per¬
centage of the capital investment is
accomplished by the growing in¬
become
—
to
volume
and
anism.
supplying
people.
Everyone of them is serious to
But
increasing
goods
The
tial
to
is
so
business
builder,
together to find solutions for them.
Mr.
42
page
the
out
acute from the
so
any
Continued
in the
ices
factors originating in the financial
community which it may find unfortunate, it will
t
to
I like
reason
that
that
realtor,
of each
aware
from
with
connected
why
remain
is
affected
homes for the American
and
assigned
was
sumers
lender's
past year or
as
income
every
The
Sometimes, the problem is not quite
may
much attention to these factors
in
confronted with over-production
are
Increase
"Problems
problem,
than
more
on more
j
1
dominant companies.
the
be taken as a reaction to gov¬
ernment policy and attitudes current within that
period. If the Fulbright Committee fails to give
a
we
especially like
me:
anything else the behavior of the
stock market during the past 12 or 15 months has
been a reflection of public policy and public pro¬
grams in Washington.
Some of the activity in
this market has represented a delayed reaction
to policies of the past, which could not, or at all
events did not, have their full normal effects at
an earlier date because
general conditions were
not favorable or because other governmental poli¬
cies, programs or attitudes were sufficient to pre¬
vent it.
Denies
,
pro¬
population and national income,"
phases in the field of growing
relationship to investment values:
centage of dominant companies in
a
greater degree of price instability, accompanied fre¬
quently by price wars, and physical expansion. Points
out the persistent rise in values of stocks of dominant
companies in growing industries, and lists its causes.
Warns of effects on sales and earnings of price wars by
of 1954,
is
money
"those whose
rapidly than
Dr. Grodinsky lists as
industries and their
(1) an increasing per¬
the industry, and (2)
houses, and concludes the nation's present home
mortgage debt of $75 billion is not too high.
I
J
More
Says though mortgage lending
ting homes within reach of families
damage could be done. Theirs is also a real oppor¬
tunity for service to the country. In some in¬
stances, buyers have indulged in excesses in
speculating in certain popular issues. What else,
if anything, has taken place which one could
reasonably regret, we shall not undertake to say,
but the real opportunity before the Fulbright
group lies elsewhere.
V
duction of goods and services expand more
liberal basis than in past, the loans are sound, and the
low down payment has been greatest single factor in put¬
really
are
it is.
as
and be¬
and Commerce
After defining growing industries as
on
provided
presents arguments and data why the Act should stand
if they
or
were,
savings bank executive, in commenting
the growing opposition to the mortgage terms
for FHA-insured mortgages in the Housing Act
sound¬
a
of Finance
University of Pennsylvania
Brooklyn, N. Y.
If
responsibility in this undertaking.
Wharton School
President, The Dime Savings Bank of Brooklyn,
Fulbright and his associates have assumed
serious
By JULIUS GRODINSKY*
By GEORGE C. JOHNSON*
underway. Sen¬
they permit the proceedings to become
Growing Companies in
Growing Industries
Housing
YORK
1
STOCK
NORTH
LA
EXCHANGE
Members
and
40
Exchange Place, New York 5, N.Y.
Teletype NY 1-702-3
.
WHitehall 4-8161
New
other
111
SALLE ST.
CHICAGO
IRA HAUPT & CO.
WOrth 4-6000
Boston
York Stock Exchange
Principal
Exchanges
Broadway, N. Y. 6
Teletype NY 1-2708
Telephone:
Enterprise
1820
2
1014
The Commercial and Financial
Chronicle
For Banks,
The
Brokers, Dealers
1
American Boxboard
American Marietta
*!.
*
■
Security I Like Best
•
A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from all sections of the
country
„
participate and give their
Bank & Insurance Stocks
for favoring
reasons
(The articles contained in this forum
Investors Div. Services "A"
they, to be regarded,
are
Lithium Corp.
ARMAND
Long-Bell Lumber of Mo.
G.
offer
as an
ERPF
New York
New York
Temco Aircraft
Time Inc.*
(1)
Capital
With
be¬
request
remain
New York Hanseatic
Associate
American
12®
look
Exchange
York
5
Direct
Private
Wires
Boston, Chicago,
in¬
the
to
and
n
should
Since 1917
panies?
panies?
The
1Veto
York
American
120
Stock
Stock
companies
disposition
American
investor
moderate
percentage
Alabama-Tennessee Natural
Gas
The
Commonwealth Natural Gas
ters
for
of
other
and
be
who
bracket
in
ments
trust
Stock
of
benefit
little
abroad
has
funds
which
here
Teletype
NY 1 -61
the
propriate
have
to
because
the
what
to
be
with
of
at
all
in
its
highly
be of
not
For
diversified
example,
because
which
the
translated
is
high
into
been
had
a
Canadian
organized
one
absent
should
the
select
strong
economies
appreciation
and
quick
the
of
American investors
taxed
has
now
The
year.
Indian Head
through
fective
when
Mills
tax
such
advantages
trusts
interest
high
with
to
became
us
rent
only after April 27, 1954,
Hence, we have opened
phase of investment trust
place
quarter
Ffo&enheimeti A'Sot
over
century
in
the
previous
the
the
25 Bread Si, New York
4, N. Y.
Tele: NY 1-3222
ment
I
in
invest¬
domestic corporations.
naturally favor in this field
New York Capital Fund of
Canada, Ltd. I consider: it a de¬
the
•
than
here.
has
request
LEWIS & STOEHR, Inc.
Established
1926
80 Broad St., New York 4
Telephone: DIgby 4-0985
a
operation
the
in
textile
field
in
and
n-te xtile
L.
Heine
—Strategic Materials Corp.
up¬
fill-;
the
radar
WHAT IS THE FUTURE
OF THIS STOCK?
pad¬
Its
>100%
" owned
posits of
of
subsidiary
has
V"
man¬
de¬
,
MANGANESZ METAL
anten-
nas, aircraft
mounts, vibration testing
equipment and vibration insula¬
engine
estimated sufficient to fieed all the steel
ducing
of
only
is
brackets
wish
place
with
faster
the
risen
21%
eration
of
speed
Yet
the
losses
only
that will
An
quite
a
result in gen-7
at almost twice
not
recent
level
of
to
the
outstandingly attractive
of
1970.
This
standing
to
400,000.
sinking
year
It
will
fund
and
issue
the
6%
of
will
amount
be
be
of
se¬
in
thereafter
to
the
to
be
with 16% in the United
States, an ;
payable
be
unconditionally
subject to earnings.
Continued
on
a
first
retire
the entire issue by maturity.
on these
debentures
not
out¬
$21,-
subject
8%
interest
;
In
High Grade Silica
Mica
Copper
Iron Ore
Asbestos
Pottery Spar
-
Management includes top industrialists.
Materials
Corp.
stock
ac¬
tively
traded
around
$10
affords
a
participation
in
a
wide
diversity o]
exploration
SEND
unaer
nigniy
competent
■
FOR
SPECIAL
REPORT
straus, blosser
and
Mcdowell
Members New York Stock Exchange
30 Pine St.
New York 5, N. Y.
BOwIing Gfeen 9-1314-24
Tele. NY 1-1385
show
securi¬
curity appears to be
the
new
Textron American 5% debentures
pace
years.
substantial
normally possible.
history of financial
too
price
for
permit
and
cash
as
past
is
the
The
not
ties.
popu¬
20
have
indefinite
out
operations
come
the
In
compared
an
operations but
additional advantage of
carryover
tax-free
capital is
a
the
loss
in
1946
on
of financial stability.
while to
cur¬
for
auspices.
the
at
profits. Most textile
reported in a business
company is starting
with a
profit in
to
S.
Strategic
period
accumulate
Since
pro¬
gradually increasing part
a
are
tunity to embark
supply of
coming under control,
being balanced, and
been
recently been
It- appears that Textron Ameri¬
can will have an
excellent oppor¬
of
also,
have
of
merger.
in
but
to
U.
subsidiaries
Feldspar
subsidiaries
upswing.
The
proxy
statement
promises substantial economies in
operations
as
a
result
of
the
the
persons
to
the
in
Textron's
lines
rate of
It
non-textile
Textron
before
a
of
addition,
URANIUM
The
a
annum.
mills
interests
tors.
in
Canada the rate of develop¬
lation
on
major lines of
ufacture
are
has
Information
dive rsif ied
Max
improving conditions.
In
ment
com-
has
pany
ing,
production and prosperity are ris¬
ing. Security prices are moving
up and the low multiples in many
instances are being equated
to
savings of the public for
'
income
countries
is
new
holstery
capi¬
abroad.
budgets
organ¬
pooling
Textron
American Inc.
and
lightly
of
money
taken
of
untaxed
taking
again
ization and
operation, perhaps in
a
way comparable to what has
giant in the textile
new
as:
$25
60%
accumulation
foreign
new
a
public
ding
spendable income.
The
S. Government per¬
the sale of such Canadian
a
created
merger
investing
the
minor
caiptal rather than to obtain
ef¬
GLUB, Inc.
the
opera t ions
investment transac¬
per
who
funds to investors in this
country.
Preferred
and
gross
not
tax
others
the U.
mitted
Its
Bankers
BASEBALL
names
than
about
accumulation
$1,000,000
from
to
1955
established
such
Capital Fund of
assets
on
Investment
.
income
gains
&
Broadway,N.Y. 6 COrtlandt 7-5680
BALTIMORE
-
expenses and taxes is at
the past
over
known
1,
old
of
Philippines, and 15% in hard¬
through
have
March
three
n o
45
some
1897
Office Tokyo—70 Branches
Brokers
111
Co.
em¬
corporate
obligations, with
balance in Canadian bonds.
funds
response
On
of
diversified
a
Established
Home
5% Debentures of 1970
commitment
in futile
achieve
Yamaichi
Textron American Inc.
very
rather
money
to
or
portions
for
write
or
Securities Co., Ltd.
Members of New York Stock
Exchange
yield can be
capital
gain
a
Call
City
In general in foreign econ¬
non¬
and
New York
attractive
taxes
are
Japanese potential.
available.
Partner, Spingarn, Heine &
portfolio.
since
tions.
have
is
high yield without
a
risk
undue
"translated into capital gairis.
the
occasion
great significance in
as
domestic
tal
purpose
the
may
for long-term capital
appreciation
this
but
The
things which
working foreign government and
States; their income is
taxed and they are not
subject to -capital gains so that
mobility is practical and-income
emphasis
participation in
concentrate
companies primarily
in
Canada but also in Europe,
South Africa, Latin
America, and
securities not registered in the
of
field,
on
investors with knowledge
of
re¬
ap¬
United
to
combination
evolved corporate and capitalistic
structure.
Abroad
one
should
and
subscribe
of
have unusual appeal
may
MAX L. HEINE
equities, invested in 13 industries
professional
can
basis
percentage
Canada
ana
find
we
ex¬
invested abroad will bear
the
when
investment
not
may
undergoing
sound
a
their
seek
The Fund pays no dividends to
take full
advantage of its favor¬
able tax position and to strive
resident-owned
Trading Markets
since
eountry
For
Phone; HA 2-9766
which
opportunities
million
States.
in
re¬
developing nature of new
rising economies may not be
Canada, Ltd.
regis¬
United
they
supervision;
is
Members New York Stock
Exchange
and
cn
United
diversification which he
a
The New York
inter¬
is
him
JAPANESE
vast
to take
advantage of a favorable
opportunity
and
make
money
invest¬
cross-section.
from
: are
for
offices
A
and
growing economies elsewhere as
well, and the provision and will
in¬
has
the
the
facets
develop¬
specific
indus¬
there
in
own
reason
waste the
in¬
to take
areas,
foreign
presumable
his
of
branch
our
with
fruit, and the New York
Capital Fund of Canada, Ltd. of¬
diver¬
a
lightly
Exchange
Broadway, New York (6)
Telephone
BOwIing Green 9-7027
outside
Such
York
is
and
economic
where
or
tered
71
to
certain
of
vestment
Hay, Fales & Co.
trust
Direct wires to
in-
States.
system
resources
NY 1-1557
Birmingham, Ala.
Mobile, Ala.
-
good
makes
American
an
a
has
compared
political
sources
States
solidly
placed
or
ade¬
quately diversified. Hence, there
those
esting
compaines
operating
in
foreign lands seems to be an in¬
request
ment
sources
than
bililon,
United
moderate
a
non-
a
abroad
sense
owning
phasize
wishes to venture
affecting
tries,
Quoted
more
HAnover 2-0700
New Orleans, La.
to investors with vision—
on
that
me
omies
quickly
2.4%
respective spheres.
My conclusion therefore is that
•'
and
light.
mat¬
Hence, the practical
one
advantage
Oil
Members New
in¬
de¬
expertly
abroad
growth
Empire State
on
technical
to
Exchange
Exchange
SECURITIES
tions
maximum
a
Stock
Stock
and
fers
sified fund since
not
exchange
steep
a
taxes.
funds
Circular
orders,
investor
into
solution, if
—
of
securities,
must
come
Sold
eco¬
is
American
the
Execution
American
LD 33
gets
—
The
reference
ac¬
handled.
Where there are high yields be¬
cause
of prevailing high interest
rates, it is of little avail to an
Lynchburg, Va.
Bought
and
registered
rates,
Tele. LY 62
of
coun¬
practical
livery
Scott, Horner &
Mason, Inc.
re¬
Rights and new issues,
here, are from
point
of view not
not
a
vestor.
Dan River Mills
the
of
different.
are
available
Company
a
to
fund
analogous
outside
frame
same.
transactions
subject
seems
vestor
a
the
if
Company
his
of
nomenclature
counting
nomic
the
allocate
to
problems in making
investments
try.
of
part
the
on
are
non-resi-
a
15%.
this
There
American Furniture Company
as
abroad.
sources
Trading Markets
such
Royal Dutch, Unilever, and Phil¬
Exchange
TEL. REctor 2-7815
in
and
ips Lamps, shows that there is a
Exchange
BROADWAY, NEW YORK 5
Ca¬
in
trusts
it
the
beyond
interest
investment
worldwide
should
Or
opportunities
nadian
Members
the marginal com¬
industries and
new
ventures?
frontiers?
|\fcnONNELL&ft).
is
of
diversified
Armand G. Erpf
of
on
investment .company
investment
much
Into
is
it
in
ploitation
industries.
or
York
American
a
grand
scale, offer
great
promise for its leading corpora¬
individ¬
in
$24
now
natural
percentages
placed
Because
dends
the secondary com¬
Into
untried
seek
be
can
the
to
as
its income from interest and divi¬
the
growth
100%
re¬
incorporated in Canada, the Fund
subject to capital gains tax
investor's
Rights & Scrip
non-
the
por¬
funds go into
the
New
Members
.
annual
70%
It
a
Members
and
stable
s,
of
tion
Specialists in
g
Steiner, Rouse & Co.
19 Rector St., New York 6, N. Y.
cerased
tax
i
L.
Heine, Partner, Spingarn, Heine
Co., New York City. (Page 2)
is not
of
De¬
Max
uct,
(3)
15 to 25 times
e a r n
of
5%
—
compared with 1.7% in the United
States.
Its Gross National
prod¬
dent-ow.ned
country
Portland, Me., Providence, San Francisco
is
Inc.
1970
Bought—Sold—Quoted
&
average
Fund
ual situations
selling at
are
Canada
of
type to give it maxi¬
flexibility in allocating in¬
vestments to specially appealing
segments of the Canadian or for¬
on
the
Houston, Los Angeles, Philadelphia,
*
great
companies
Cleveland,
The
which
representing
PHILADELPHIA
of
Can¬
diversified
strictions
speculation. If'
the blue chips
Teletype NY 1-40
BOSTON
for
vestment
Member
WO/th 4-2300
to
other
to
fields
Broadway, New
econ¬
it is only
omy,
1920
Stock
e
natural
Corporation
Established,
t h
American
eign economies without rigid
ing stability and gradual growth
of
outside
rf
—
Textron
is
up
(2)
Capi'al Fund
mum
in view of the increas¬
so
three
the United States.
coming fully priced, and likely to
on
of
Alabama &
Ltd.
Armand G. Erpf,
Partner, Carl M. Loeb, Rhoades
& Co., New York
City. (Page 2)
nor
primary emphasis of
Canada, but it mayto one-third of its re¬
Fund
sources
securities
because
York
bentures
The
invest
Ltd.
American
vehicle
Week's
Participants and
ada,
be,
to
New
features:
City
the
Fund of Canada,
intended
not
are
Thursday, March 3, 1955
.
Louisiana Securities
particular security*
a
.
Their Selections
sell the securities discussed.)
to
sirable
Partner, Carl M. Loeb, Rhoades & Co.,
Metal & Thermit
mAnalysis
This
Forum
.
Na Qa Ba
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocki
POLDER
ON
REQUEST
The
will
and
They
page
5
National Quotation Bureau
Incorporated
46 Front Street
New York 4,
N.Y.
Volume 181
Number 5408
.
.
The Commercial and Financial Chronicle
.
1015
INDEX
Majoi Factors in the Investment
By
ROY
L.
'
'
t
AND COMPANY
the Housing Act of 1954 and the FIIA
of
—George C. Johnson
Cover
THERE'S NO BUSINESS
Growing Companies in Growing Industries
—Julius
'
Grodinsky
i
;
LIKE SHOW BUSINESS!
Cover
Dr.
Reierson, after examining the investment environment in
1351, pictures the investment outlook for 1955 as being in-
Major Factors in the Investment Outlook for 1955
<
fluenced both
by heavy demands for long-term investment
funds, accompanied by large amounts of such funds held by
savings institutions.
Sees commercial banks still providing
role
determining the environment in investment markets
Our
explorations into the
look
for
flows
of
policies
are
appraise
i
nve s
funds
out¬
investment
New
the
was
"—Samuel
in
1954
Treasury made no offering of
long-term bonds, whereas in 1953
of
it
part
the
sold
year
t ment
about
$1.2 billion of 30bonds for cash and issued an
additional
environment
change
$400
for
million
maturing
in
F
W.
Buek
ex4
G
and
6
H.
Ballam,
If War Comes:
—Robert
Jr.__
WALL
Wilson
E.
'
r.
Administration's Problems and Its Accomplishments
—Hon.
George M. Humphrey.!
11
Standard Uranium
Stancan Uranium
13
14
is
to
tices, however, total demands for
Puerto Rico's Achievements in Economic Development
—Guillermo Rodriguez
:
express,
in
Stocks Follow Bond Prices
long-term investment funds
larger in 1954 than in the
demand
and
supply
These
were
pres¬
be
in
crucial
pre¬
—:B. Barret
-
requirements
met in 1954 without any
declined
last
the
of
increased
in
the
are
attempted. We be¬
analysis provides reason¬
ably adequate coverage of the
major demand and supply factors
terest rates.
If the statistical
were
detailed,
more
sive
and
readiness
the
past
would
be
;and, consequently,
ful.
The
•outlook
kets,
in
like
^evaluation'
still
forecast,
est
would
1954
ment
factor
portant
that
the
in
investment
with unrabated strength. In the aggregate,
the long-term financing require¬
business
of
of
•owners
estate
real
local
the
•economic
activity in 1954
reflected
in
was
demands
lower
not
Act
The
A
of
1946—Leon
SEC and
New Look
—Lewis
H.
Keyserling
Gilbert
1
1954
commercial
banks.
of
forms.
increased
This
significantly last year.
buying by the banking sys¬
helped institutional investors
lighten their holdings of gov¬
to
ernment
ance
obligations;
companies
and
life
insur¬
mutual
As
We
See
It
Bank
and
Insurance
Cover
Stocks
Recommendations,.
8
Ein7ig:
Convertible?"
9
-
18
;
Steel
*
"Is
Sterling
Now
the News—Carlisle Bargeron
Mutual
of
Current
Business
Activity
NSTA
maintain
Funds
8
and
Observations—A.
Bankers
Wilfred
Request
markets
over-the-counter
22
May
Reporter
Our
Reporter's
Governments.
on
mote
HA 2-0270
40 Exchange PL, N. Y.
Teletype NY 1-1825 & NY 1-1826
4
,
Direct Wires
Our
in
securities
Singer, Bean
& MACKIE, Inc.
46
Banks
250
on
trading
51
Notes
About
Products Eng..
*Prospectus
We
than
Indications
Public
41
Report
Utility
Railroad
••
to
Philadelphia.. Chicago.. Los Angeles
58
Securities.—
24
Securities
Securities
Now
Prospective
Securities
24
In
Registration
Security
Salesman's
Continued
The Market
.
The
The
State
.
Security
,
52
Offerings
j
56
Corner
,
and
37
You—By Wallace Streete
I Like
New York
Stock
16
Best
of Trade
and
2
Trading interest in
Industry
4
Washington and You
on
page
60
48
Twice
Weekly
1
Drapers' Gardens, London,
land, c/o Edwards & Smith, •
Reentered
B.
DANA
COMPANY, Publishers
Park Place, New York 7, N. Y.
HERBERT
D.
2-9570
to-9576
President
Exchange
Subscriptions
in
United
Territories
•
Pan-American
Union,
Canada,
Other
Thursday, March 3, 1955
ST., NEW YORK 4, N. Y.
Cinerama Inc.
Reeves
of
States,
$55.00
TELETYPE N. Y. 1-5
•
Thursday
(general
news
Chicago
•
Glens Falls
Schenectady
•
and
Other
ad¬
issue)
and every Monday (com¬
statistical issue —market quotation
records, corporation news, bank clearings,
vertising
and
city news,
etc.).
Chicago
Offices:
3,
111.
135
South
(Telephone
Bank
La
Salle
St.,
STate 2-0613);
and
per
year;
Note—On
per
year.
JohnR.BoIand&Co.
be
INCORPORATED
—
Monthly,
of
the
fluctuations
in
of exchange, remittances for for¬
subscriptions and advertisements must
made
in
New
30
Broad
Street, New York 4, N. Y.
(Foreign postage extra.)
account
rate
eign
request
in
year.
Record
on
S.
Publications
Quotation
$37.00 per year.
the
Worcester
Other
Corp.
of
$58.00
Countries, $62.00 per
*Memorandum
U.
Members
and
•
Every
Soundcraft
Subscription Rates
Dominion
SEIBERT,
Corp.
Eng¬
ary
25, 1942, at the post office at New
York, N. Y„ under the Act of March 8, 1879.
SEIBERT, Editor & Publisher
DANA
C.
Cinerama Productions
matter Febru¬
second-class
as
Possessions,
WILLIAM
E.
*
Copyright 1955 by William B. Dana
Company
CHRONICLE
Reg. U. S. Patent Office
state
•
Hycon Mfg. Co. Pref'd*
39
+
Elec.*
Films, Inc.
Standard Uranium
-
Dealer-Broker Investment
From Washington Ahead of
Diesel
Guild
(Editorial)
plete
Nashville
Brown Allen
Consol.
FINANCIAL
•
1955
Regular Features
PREFERRED STOCKS
Boston
City
37
46
Sees Gains for Heavy Industries in
sav¬
ings banks reduced their holdings
by about $1.4 billion, making an
1
•
Philadelphia &
tem
Spencer Trask & Co.
Albany
to
Lahe
portfolios
in¬
TELEPHONE HAnover 2-4300
wires
4
1-4643
%
William J. Dacy
REctor
Members
%
Stanislaus White Takes Issue With "Chronicle" Editorial
On Far Eastern Policy
(Letter to Editor)
25
BROAD
Direct
22
Teletype: NY
Salt
&
WILLIAM
25
Broadway, New York
DIgby 4-4970
20
"Opportunity Unlimited"—Hon. W. Randolph Burgess
Published
specialized in
42
at Management-Shareholder Relations
D.
The COMMERCIAL and
have
J. F. REILLY & CO.
20
This
the
in
For many years we
19
Proxy Contests—J. Sinclair Armstrong.
permitted
holdings of government se¬
some $6 billion; in ad¬
dition,
the
commercial
banks
lengthened
their
government
outstanding mortgage
and
state and local government
debt.
A partial offset to these
larger requirements for long-term
creases
18
Responsibilities of Government Under the Employment
News
that
investment
their
was
than balanced by record
record
curities by
of long-term funds
but this reduction
year,
more
factor
larger
support took a variety
The commercial banks
for
of
in¬
creased by close to $2V2 billion,
•or more
than 10%, from 1953 to
1954.
The net amount of longterm funds raised by business cor¬
porations was somewhat smaller
last
reached
by
requirements
net
users
the
and
to the investment markets in
of
investment funds; on the contrary,
.aggregate
funds,
require¬
ments to be met without a
signi¬
ficant rise in bond yields, was the
large amount of support provided
state
rate
increase
Another
have
Strike First in Use of Force?
—-Roger W. Babson
appre¬
the fairly important
the volume of funds
retirement
the
the
5nsince 1949. The
in
letdown
modest
and
governments
•creased every year
these
an
proportions last year.
corporations,
S.
Federal Uranium
17
1953, and the aggregate amount
of
is still continuing
Should the U.
to
time deposits of commercial banks,
all showed a larger growth than
mind
in
keep
to
postwar
Stability for Granted
Wilde
was
in
15
the
funds
banks, savings and loan
associations, trusteed pension
funds, and state and local govern¬
appraising the outlook for the
long-term credit markets, one im¬
•and
for
savings
In
ments
enabled
accruing to the major savings in¬
stitutions. The funds available to
life insurance companies, mutual
under-
Investment Environment in
Iboom
rates
increase
faking.
is
that
ciable firming of long-term inter¬
mar¬
formidable
a
factor
be met in 1954 without
effort at economic
and
remain
One
meaning¬
appraising the
investment
the
any
only to make longavailable currently,
larger requirements
of
reliable
more
not
funds
commitments.
data
record
in
year
but also to enter into large future
more
of
task
term
comprehen¬
the
accurate,
the
requirements
for
investment funds; important
investing institutions displayed a
that have an important, but not
necessarily determining, influence
upon the course of long-term in¬
B.
I
Ellsworth
were
appreciably during
spite of the larger
estimates
'
Lisbon Uranium
Griffith and Bruce
Cannot Take Economic
—Frazar
of
relatively
stable thereafter, until the
long-term
closing
months of the year, when
investment
yields,
especially on government bonds,
market.AvailRoy L* Reierson
increased moderately. Long-term
ability of data has been the major
•consideration in determining the investment funds were available
particular breakdowns of demand throughout 1954 at a relatively
low cost; this cost did not rise
.and
supply for which separate
lieve the
We
sig¬
early months
and
year
Sabre Uranium
were
nificant upward pressure on
long-?
term interest rates.
Bond yields
likely to
operating
sures
"sectors
.■"•/
year.
4-6551
12
.•
The Paper and Pulp Industry's Stake in Freer World Trade
J. D. Zellerbach
1
Even allowing for this dif¬
ceding
WHitehall
-
bonds.
the
STREET, NEW YORK
Telephone:
10
ference in debt management prac¬
quantitative
cash!
our
What Industries Will Be Affected?
ob¬
terms,
obsoletes
you
■
1955.
jective
your
show
Obsolete Securities Dept.
99
-
.
in prospect for
The
us
we'll
Significance of Atomic-Energy to Business
in
that
5
Fiduciary Fund: A Trust Investment
i
in 1955.
fact
Bank
Company—Charles
the
demands,
investment
an
effort to
York's
show
and
*.
Making Tracks in the Market—Ira U. Cobleigh
and
savings
3
'
..
support to the investment markets, but on a smaller scale
than in 1954. Holds, as was the case last
year, credit and
debt management policies will play an
important
So
—Roy L. Reierson
•'
mm
Page
Economist
Bankers Trust Company, New York
i
Defense
A
REIERSON
and
B. S.
Articles and News
Outlook for 1955
Vice-President
3
York
funds.
BOwling
Green
Teletype:
9-3249
NY 1-4487
V
1016
4
The Commercial and Financial Chronicle
gether
the
with
Observations...
in
higher stock
balance
favoring
again
1948 and
1949, married
they could
as
tax-free
on
But. post-Korea
A LOOK AT TAX-EXEMPT SECURITIES
tax
to
stocks, taxable corporate
bonds, and tax-exempt securities,
and his computation of the actual
value of tax-exempt investment
common
whose use is steadily
to both volume and
of the use of the funds,
security,
growing
scope
as
sureiy
thor¬
for
war¬
rants
a
ough
going
analysis. :
-
This
*.
is
now
available
in
a
full-
new
•
various
income
high
Relating
municipal
-
groups.
corporation
1941
to
hand,
During the following
The
Ownership of
Tax-Exempt
Securi ties,
1913-1953
by
George
E.
State of Trade
Wilfred
May
the
incomes
high
initial
the
duced
of
about
War
surtax
'"critical
$25,000.
years
rates
re¬
income"
to
considerably less than the $25,000.
Postwar, the income-splitting pro¬
vision materially reduced the tax-
re¬
exemption bonus to married
the
sons,
Economic Research.
of
was
with
per¬
the choice of married
with
persons
income
an
below
$30,000 still being slanted toward
study embarks on the dou¬ corporation bonds rather than taxble objective of analyzing trends exempt issues.
But with the re¬
in the volume and ownership of newed upping of taxes
in con¬
state
and
municipal bonds, and junction with Defense activities
ernmental
well
as
intelligent
guiding
as
gov¬
policy and tax policies;
throwing light on the
after
1950, the value of the taxfree yield of tax-exempt securities
has again
individual investor's decisions. Dr.
Lent
embodies
also
study
of
full
a
case
various
interesting and
in which changes
in Federal income tax provisions
affect competition with the private
unexpected
ways
securities market.
Dr.
ing policy vis-a-vis common stock
holdings, the Study shows the
counteraction
stock
and
The very
his study
between
tax-free
changing
bond
yields.
low stock prices of the
post-1932
initiated
Lent
become enhanced.
the determination of invest¬
In
Depression
period
Food
abled those investors with incomes
to about $60,000 to realize as
high a rate of return after income
Associate
the
at
from
leave
on
North Carolina.
of
member
National
the
Bureau
University
He is now
the
U.
a
of
staff
S. \ Treasury
Department.
The
amount
gross
of
tax-free
securities
rose
19L3
peak of $36.6 billion in
to
a
from $4.5 billion in
1936, when certain Federal
farm
as
loan
and
nicipal securities
empt
from
thence
to
tax.
low
a
state
were
as
and
well
mu¬
wholly
ex¬
After
declining
point
of
about
up
tax
the
on
stocks
as
ter 1934
on
now
state
ceased
entirely of
obligations be¬
Federal
Government
issuing tax-exempt issues
Since
1941.
War
local
the
cause
in
consist almost
and
the
end
of
World
the volume of these state
II
and
local
and
is
Investment
Advantages
Interesting
planner
is
comparison
to
Dr.
of
the
and
average
detailed
yields
Af¬
in
and
income
tax
Individuals
44% of the
now own
$32 billion total of tax-free issues,
in
marked
1930's
contrast
when
reached
to
the
individual
full
a
early
holdings
two-thirds
the
of
total.
The individual's principal
competitor, the commercial banks,
hold about 40% of all tax-free
se¬
curities, against only 15% in 1932.
Despite progressivized
income
taxation,
the
individual
holdings
strongly concentrated
the highest income groups
still
are
among
—the
upper
1%
group
holding
two-thirds of all individual invest¬
ment in municipal securities.
Reflecting the income tax im¬
pact, the highest income group
(that is, estates over $10 million)
has doubled
total
the
percentage of its
invested
in tax-
holdings
exempt securities since the 1920's.
This shift has not been at the
of stock holdings, but from
fixed-interest media.
pense
other
Another
interesting
that
ever
War
commercial
mained
since
the
tutional
But
the
largest
single
for
is
World
have
re¬
insti¬
state
stocks;
by
1940
the
further
being
those
in the
come
differential
with
common
attractive
to
even
class.
Then
level
the
$200,000-$300,000 in¬
insurance
attitude
tax
in
rates
the
life
on
whom
very
is
"critical"
income
motive,
their
securities
during
the
largely
to
past
their
holdings
have
five
interest
in
rev¬
bonds, and the increasingly
availability of this type of issue.
enue
other
In
have
words, these institutions
been
willing
tax
of
to
buy
exempt
saving merits—a somewhat
prising situation in view of
investment
rather
this
issue
than
equalizing the comparative yields.
Additionally, while the yield on
municipals
was
falling to
the
comparatively inferior quality and
for
on
common
tically.
history, the yields
stocks also
As
a
After
the
range.
War,
income-splitting
i
ida).
)
The
area
1954
fire
continuing
v
i 1
e g e,
to¬
trend
is evidenced
statements
and
coming
because of the
p r
broadening of the uses
money-raising device (even
fair-ground projects in Flor¬
in
the
of
in
Dec.
the
this
casualty companies just
hand, which list sub¬
to
stantial holdings of revenue bonds
of all types and descriptions.
More
passenger
in
than
Deb.
Due
woods
and
1970
Mounting
Common
.
Common
to
.
helicopters.
are
a
few stocks
we
Aetna Insurance Co.
With
Utilities
ingot rate
ONE
WH
WALL
York
Stock
Mills
this
skip and
week
operating at 91%
were
jump from
a year ago.
expected
of capacity,
a
short
95-96%.
Tonnage produced
only 6% below the all-time weekly tonnage of 2,324,000
established during the week of March 23, 1953.
,
will
a
an
be
tons
There
to be no prospect of a let-up in demand through
Many producers and consumers are changing their
thinking over the outlook for the third quarter. Even if auto¬
first
seems
half.
motive sluffs off
is
likely
to
over
support will
come
expect, the momentum of other markets
into third quarter.
Additional last half
from
as
carry
inventory-building, continues this trade
some
authority.
Steel
fronted
lines
it
with
prompt
dual
a
adds,
are becoming more anxious and
delivery. Most of them are con¬
problem: Keeping their own production
consumers,
insistent upon
going and trying to rebuild their inventories.
feverish
The
of the steel
pace
provement in demand for virtually
the
In addition, the pickup
year.
been
market
reflects
steady im¬
a
all products since the turn of
in the last several weeks has
overwhelming.
If the
buildup continues, warehouses, already showing a defi¬
though spotty improvement, may expect a sharp increase
nite
in
business.
consumers
A
mild
market
gray
forced
are
also
may
be
in
the
works
.
Producers
steel.
are
receiving
A few such deals may
Automotive
168,080
cars
production
and
14,928
inquiries
for
possible
conversion
be in the making, it concludes.
in
the
trucks
United
last
States
week,
was
"Ward's
placed
This
compares with 173,432 cars and
14,953 trucks built in
preceding week, the decline reflecting a slight letdown at
Chevrolet, easing of overtime in some factories and a supply
shortage at Plymouth.
the
In the comparable
041
in
cars
and
1954 week United States plants built
113,-
21,574 trucks.
The agency put
February output at 674,000 against
January which had one additional work day. In
Chrysler
added,
General
Motors
again
49%
took
and
19%
Ford
of
the
<
industry
659,719
February, it
assemblies;
26%.
Output Scheduled This Week
to Show
Below Previous
a
Fractional
Week
auto
industry is being overrated as a key to this year's
and supply, says
"Steel," the weekly magazine of
metalworking the current week.
steel
demand
auto
countless
industry is important and is the largest
Continued
on
consumer
page
45
are
pleased to
that
announce
find markets for—
william j. McGregor
Hartford National Bank & Trust Co.
has become associated with
in
our
England Telephone Co.
its
trading department
Torrington Corp.
TAYLOR & CO.
MEMBERS MIDWEST STOCK EXCHANGE
105 S. LA SALLE ST.
Merrill Lynch, Pierce, Fenner & Beane
NEW YORK 5, N. Y.
Offices in 106 Cities
at
Automotive
Reports" stated.
Landers, Frary & Clark
Southern New
as
to
buy emergency tonnages from otherthan-mill sources at premium prices. Scattered deals of this sort
have been made, this trade journal notes.
•
Fire Insurance Co.
70 PINE STREET
week
pushing toward capacity, sea¬
increasing the pressure. Marginal
production and finishing facilities are being pressed into service.
Exchange
3-8200—Teletype: NY 1-2122
a
are
Trading Department
ST., NEW YORK 5, N. Y.
out
year.
already
influences
Just call—
Members
turned
were
past
the
Co.
Insurance Co.
Interested?
con¬
for
pressure
We
or
ca¬
year.
trucks
the
market
sonal
j
make markets in
Hartford
Aetna Life Insurance Co.
Citizens
with
....
Emhart Mfg. Co.
New
the
.
.
insurance, from hard¬
Connecticut General Life
GARTMAN, ROSE & CO.
resorts,
.
Some specific examples?
Here
Preferred
and
in
opportunities for investors in everything from office equipment
to firearms
from aircraft engines to
ware
V. S. FINISHING
camps
-•
delivery is pushing steel producers
against the wall, says "The Iron Age," national metalworking
weekly this week. Some mills are lagging, behind on delivery
promises. Backlogs are building up and production, processing,
and shipping facilities are being strained to the utmost.
The
lakes, the
of the
and
cars
period
any
Decline
CONNECTICUT
The
%
;
rose
This week scheduled
preceding week and 38% above the like week
The
6
■
production
Heavy construction
contract awards also climbed rising 61% above the level of the
ago
Call it all
GERA CORP.
'
.'
The current outlook is for high production of steel to
ago.
Steel
for Banks, Brokers, Dealers
>
ingot output has stimulated the demand for
tinue into the third quarter
31,
leading
•'
weeks, steel
nine
past
The recent rise in
great
of this
stock
offered practically no comparative
advantage for those who were in
the
income brackets above the
$45.000-$60,000
Net Trading Markets
fell dras¬
consequence
the
7
: ; ' ■■
_
the
rolling mill equipment and led to increased operations in the
coal industry.; Blast furnaces of steel plants used approximately
25% more coal the past week than in the same period a year
sur¬
the
upturn
pacity placed at 90.8% in the latest week.
ouput is set at 90.0% of capacity.
:
on:
tax-
;•
in
As
years—due
its
for
of
doubled
lowered
level
1954.
OI
low, is
wartime
the
again
Business Failures
J
more
of
companies,
incidence
saving
type
changes
of
Index
occurred in total industrial output
for the country-at-large in the period ended on Wednesday of
last week.
It was about 6% higher than in the similar week
and
obligations.
the
tax
finding
First
banks
market
municipal
the
ex¬
these
to the $60,000-$80,000
Industry
considerable
A
Who Owns the Tax-Exempts?
yield differ¬
category could have advantage¬
ously
transferred
to
common
on
investment
Lent's
the
lowest levels in
obligations has doubled
rising.
still
Comparative
with
incomes up
stocks
ties
toward tax-
fluid,
particularly significant.
For de¬
spite the unimportance of the tax-
widened
These securi¬
common
municipal bonds.
the greater
be
attraction of equities despite even
the greatly raised
surtax
rates.
From 1936-39 persons with taxable
to
$32 billion.
of
ential between municipal bond and
stock yields increased the relative
$16 billion in 1946, it has increased
over
purchase
Price
Auto Production.
the years
rates.
en¬
as
Carnegie Corporation Research
a
over
policy
must
yields
The
thereby
that
v/e see
investor's
gross
yield
by
leased
National
Bureau
ma¬
Commodity Price Index
income
elements in the situation, depend¬
ent on changes in their respective
and
Lent,
A.
Thus,
the
equalized for married persons
with
$50,000
Trade
Retail
level.
exempts
net-after-tax
length study
just coming to
the
choice of media, apart from other
-
bonds of similar
the
to
!
Carloadinrs
increases
free
tax
turity, the Study shows that dur¬
ing most of the period from 1932
to
time
Production
Electric Output
bonds.
taxable
grade
securities
this
Steel
The
...
again reduced the "critical level"
Tax-Exempt
the
of
device
The
Thursday, March 3, 1955
.
Thus,
persons
with incomes of $100,000 and even
more could realize as much after
taxes on common-stock dividends
By A. WILFRED MAY
.
yields,
returned
stocks.
common
.
CHICAGO 3, ILLINOIS
TELEPHONE
FINANCIAL
6-1030
TELETYPE
CG
1429
Volume 181
Number 5408
:
.
The Commercial and Financial Chronicle
.
1017
items
Making Tracks in the Market
carry a much
margin than
Naturally
higher profit
"
units."
new
large
and
so. progressive
can't
stand
still; it has to renew, modernize,
By IRA U. COBLEIGH
Enterprise-Economist
company
a
so
'
l.
'
*
A current
appraisal of
■
and add to, its
picks
power
:
Historians
delight
man's advance by
milestones
ment of
such
where wheels leave off—Caterpillar
Company.
in
marking
Company (organized in 1910) and
Manufacturing Company
(incorporated in 1905), Caterpillar
the
employ¬
fire, and the invention of
"!\
the wheel.
Less
Tractor
and
well
earth,
marked
type
them,
however,
is
and
in
has
pioneered
equipment
to
move
and the so-called crawler
of tractor.
Versatile units,
these
among
Company
led
"Caterpillars"
playing
are
have
played
vital part in
public utilities,
the date some¬
many
farming,
in
the Holt Man¬
struction, lumber, mineral mining,
oil,
and
military
constructions
ufacturing Co.
such
1905, when
forth
came
with
its
"Cat¬
erpillar"
hicle,
celled
now
famous
U.
ve¬
capable
the
over
in
has
its
in.
This
unit
Caterpillar
transfer
capacity to
nual sales of
point where
a
$675 million
This
Decatur
augmented
ex¬
by
feet
1953; and the
roller
about
the
on
these
In
revision
postwar
and
1946 hit
a
net sales.
varied,
of
rise to 1952 when
movers, it has researched its D9X,
the
biggest, most power-packed
of
ward
aft.
or
tank,
key
soil, pull, push
implements for¬
or
And
of
the
course
strategic
of
type
World War I, moved us on to Vic¬
crawling tractor anywhere, which
should
hit
the
production
line
tory on caterpillar tyne treads.
some
Some
in
variations
schemes
our
transport
make
the
just
weapon
innovations
or
of
in
Caterpillar has
traction
or
fective sales and
managed
never
grade
time this year.
to
tem—a
world—
our
selling
the
zeppelin or monorail for ex¬
ample.
Others catch on at once,
here
and
cated
of
move
ahead both by the logic
cry
which
and
trades.
their technical advantages and,
quite
far
solid
a
from
has
there
dealers —125
and
the
sys¬
cropped
Caterpillar has
Canada
ef¬
and
the bootleg
the
in
U.
important, by the sus¬
managerial competence of
the enterprises dedicated to man¬
ufacturing and sales promotion.
Among
companies
which
have
dealership is
no
the
definitely made good with
service.
out
motor
some
of
car
dedi¬
them
S.—and
in
the
agency
as
tained
vance
an
or
traction technique, we must
with
a
York
1954
into
being
in
estimated at $137 million
such
repair part sales have now reached
about 23% of the total; and these
as
the C. L. Best Tractor
merger of
and
effective and en¬
trenched
sales
outlets, and
be¬
cause Caterpillar has been in busi¬
ness for so many years, spare and
record,
1925
are
Through
the New
on
sales
provide
They, too, must be doing
job, as export sales for
(out of total sales of $401 million).
Stock Exchange.
Brought
a
dividend
30-year
active market
dealers
good
a
million dollars
a
Elsewhere in the world
more.
125
ad¬
slight thing, with
representing
investment of
an
certainly list Caterpillar Tractor
Company—unique in its field and
a
distinguished industrial equity
and an
average
$477.5
curiously enough
1952
1,
1955
on
favorable
very
pleased to
MR. JOHN
has
again become
announce
that
our
per
showing
last
1946-50
downturned
the
percentage of total wages and sal¬
aries
to
below
sales, from 40.5% to just
27%.
with
what
a
Anyone who
labor
ratios
whale of
works
appreciate
job in beefing
can
a
KALB
at
Caterpillar.
drifted
up
around
30%
still
The
little
a
Texas—On
type of industry.
It
might well
Exchange.
taxes
had
$1.50
a
be
for
this
argued
year-end, and max¬
earning power was
be¬
by
in
two months partial
a
1951,
14 weeks
a
of
1953;
only
and
now
the
at
payoff
quite
Thirty
years
■
-
■
that
so
reasonable
by
stock
equities,
the Over-the-Counter Market and
nard,
the
Vice-President
and
Secre¬
87
current
W. P.
(Special to The Financial Chronicle)
Clifford
D.
CISCO,
Barnes
.
Calif.—
has
with
&
bers
310
of
the
New
Lundborg
York
and
is
W.
San
Clancey Adds
is
P.
associated
now
Clancey
&
Co.,
First
pleased to
are
will
be
located
announce
in
john p. mellor
our
that the fol¬
organization and
New York office.
our
.
prentice talmage,
Rowland c. Hike
soren D. nielsen
a
and
.
.
.
.
jr.,
Bond Department
Municipal Department
....
stock Department
.
.
Trading Department
.
Tucker, Anthony & Co.
Members New York Stock Exchange
boston
new york
been
stock
1954.
dividends
And
in
We take
pleasure in announcing that
net
Robert A. W. Brauns
has become associated with
us as
policy here have achieved balance
sheet
strength
without inhibiting
scale flow of funds into
for
increased
future
large
Manager of
expansion
There
are
4,144,693
shares
-
listed
mon
■;
-
Barrett Herriek & Co., Inc.
York 5, N. Y.
NYSE
quoted at 87.
for
dend
Syndicate Department
com¬
and
is around
year
$3;
fashions
in
finance,
probability
a
mon,
age
split.
and
for
Ahead
providing
same,
the com¬
some
lie $52
$4.2
preferred,
million
selling
120 Broadway,
in
at
104,
New York 5-
254 Park Avenue,
lever¬
long-term debt and 230 000 shares
of
Members New York Stock Exchange
another
of
of
Established 1905
sug¬
stock dividend this year, and per¬
haps
MSPO**NELI. & C—
price of the stock, and the
the
gest
this
our
of
currently
Possible cash divi¬
DETROIT
with
Na¬
the Cincinnati and Midwest Stock
Exchanges.
lowing have joined
86V2-
tional Bank Building, members of
Francisco Stock Exchanges.
We
in
(Special to The Financial Chronicle)
Meyer
Sansome Street, mem¬
Co.
Irving
quotation
traded
CINCINNATI, Ohio—Charles W.
become
connected
are
y2.
Irving Lundborg Adds
FRAN
the risk.
These debentures
tary.
S/a.x\
be
of
here; and
supple¬
two-for-one split in
4%
and
current
the
to
to
seems
income
bounties have
but the
35 11 all Street, New
compared
in
magnificent current solvency. The
gentlemen who direct financial
relationships
-
obviously
President;
Roderic
B.
Thomas,
Vice - President
and
Treasurer; and Robert E. Den-
working
capital of well above $100 million
gives obvious documentation of
Underwriting Department
If
While
year except 1932)
roughly aver¬
aging 45% of net, have provided
Caterpillar Tractor Company
.
medium.
bership,
profitability.
and wholesale dealer
ment
is
ex¬
bit of confidence
a
es¬
the profit possibilities are limited
payments
(with net income reported in each
assist irr
us to
Officers
He's
should
and
the management.
a
joined
3
uninterrupted dividend
Mr. W. Edward Tague
our
will
strong demand at quarterly
intervals.
The yield of over 7%
to
average
maturity
compares
favorably with any other invest¬
Dallas Gordon Rupe, who will
hold the firm's Exchange mem¬
share could quite
a
well treated
1953
has
require¬
tablish
window.
Caterpillar stockholder.
1949,
-
matter of history.
the debentures
on
the
predecessor
steel
1952, and the rolling re¬
up
mented
;
the
clipping around
share, from net
per
above $10
ude
Exchange
announce
are a
for
reasons
of
heavy sinking fund
ments
are
conservatively be projected here.
Exchange (Associate)
pleased to
companies
The
the
losses
Assuming a possible sales figure
$600 million, net carry through
Street, New York 4, N. Y.
are
that
Excess profits
1953
imized
strike
been
year,
the
till
a
We
The company's officials
earnings.
probably
mark
yet to be revealed.
these
'
15-year
The past
our
part.
a
of
KALB, VOORHIS 6- CO.
•
are
guide for estimate of future
no
believe
Rupe & Son, Inc. are be¬
coming
members
of
the
New
Stock
inventories of $82,000,r.
liabilities
amount
to
All
debentures
Dallas
York
$162,rreceiv¬
has
ratio
to
that
the full potential of Caterpillar is
the
25 Broad
March
cash,
$67,500,000, of which
is
of
right now, but that's
excellent
an
been
American Stock
including
and
balance
assets
plant efficiency has been done
up
show
firm
York, Slock
ables
,000.
Acquiring
Membership in NYSE
DALLAS,
.
forma
pro
shows total
000,000,
any
Let's pause a moment to look at
Members Neiv
recent
sheet
that
Dallas Rupe
plant
period
A
heavy
de¬
year
efficiency which in the five-year
of
in
king
to
the vast investment in plant addi¬
tion
and
improvement ready to
General Partner
a
that
converted
of the company.
substance
some
pillar—which may make tracks in
the market.
r
\
rives not only from the expiration
of E.P.T., but from improved
cession
are
steady
net of only $4.84 against a
share figure of $5.83 for 1954
$76 million less business. This
strike in
We
for
share
devilled
March
a
was
But
gross
of
year
all-time high
attained.
an
million
was
size
per
distribution
The
course.
low of $128 million
Then there
,
new
figures.
reconversion
fective only in extremes, such as
the liquidation or reorganization
themselves and to examine Cater¬
subject, let's
sales
company—-
provision which will become ef¬
a
bulls dozing at the mo¬
ment, it might pay them to bestir
the export market.
While we're
will be junior in status though to
the other debt to tne
Caterpillar
Tractor Company can continue to
produce, sell and prosper. If there
parts for Eastern U. S. and
tractors, motor graders and earth
drag loads
and
500,000
York, Pa., completed in
1953, which turns out tracks and
wheel
on
a
in
its standard
research.
on
improvement
follows
another
in
They've
continuous
plant
plant in Joliet, 111. of 700,000
square feet completed in 1951 and
plant
the
give
Security
I Like Best
delving for minerals all over the
globe, increased farm mechaniza¬
tion, and our $100 billion road
are
ful enough to plow
or
be
may
possible.
and
crawler
an¬
man¬
industrial demand for its
products,
the opening up of backward
lands,
belief
tal
The
long-
prospect of entering a
plateau of profitability. Big
new
to
inhospitable terrains such as rocks,
mud, mire or swamp; but power¬
lines,
motor
sound
a
the
put from Peoria, and up-grade to¬
square
special type of
own
year
to
will
manufactories.
com¬
agement, prudent expansion, long
dividend record, sound financing
all
talk
addition
most
time
of
holding—good
program
million
a
big
equity
grader and wheel-type tractor out¬
day stays up ahead in its field
by virtue of spending around $6.5
only of
progressing
Cobleigh
con¬
traction tread, but it pioneered in
the use of diesel power, and to¬
not
Ira
only
word
new
building
air strips or field bases.
as
-Not
—
and
road
internally by depreciation
earnings.
The big¬
gest project in recent years is the
new plant at
Decatur, 111., the last
retained
a
time way back
industries
and
and
the- Holt
noting technical
as
requirements
term
erated
Tractor
industrial
an
Continued from page 2
stock that meets most of the
million of these funds being gen¬
a
op
-
Here, then, is
mon
plants. In the five
years
1948-53, capital outlays of
over $100 million were
made, $94
.
distinguished enterprise dedicated to
making tractors and eartk movers, whose traditional applica¬
tion; of
anauthentic investment-type blue
5
REctor 2-7800
New York 17
"
ASBURY PARK
The Commercial and Financial Chronicle
1C18
6
to modernize old
New Yoik's Bank Fiduciary Fund
do
ideas;
new
the problem
A Trnst Investment
Company
small
and
we
of the Bank Fiduciary Fund, an
by several trust companies, and
"debut" about May 1. Though this fund
purpose
which will make its
will look like and operate as an
act much
,
tions
-
are
common
'
Fund" is
like
more
is
In
since participa¬
of
one
York
New
our
thing which
campaign
to
improve
the
and quality of our service
scope
Bank
its
ful
Fiduciary Fund
May 1, and
of
still
will make
the
position
happy
are
we
that
believe
the most popular debutante of
ing.
We
help
S
of
and
both
in
have
sat
our
that
say
down
has
problem
with
discuss
to
in
been
has
plan
not
can
been
opposed by any one who took the
time
*An
to
by
think
address
Midwinter
Bankers
Feb. 7,
it
through.
by Mr. Buek at
Trust
the Trust
which
It makes
perpetuate
of the
from
Division
of
The
the 36th
Conference
sponsored
the
the
past.
the
old
have
we
Another
practices and
Where it dif¬
debated
American
that
it
will
serve
another
will
purpose
for which the common
trust
fund was never
intended.
In New York
the
banks
have
even
ment
age it.
mental questions of
can
no
invest¬
be
you
The Bank Fiduciary Fund
open-end
the
mutual
statute
personnel to
man¬
point in put¬
basket.
Our
viates
from
the
policy.
ting all
if
It de¬
traditional
no one
as
to watch the
field, and yet
accepted and endorsed
large
a
trust
department must be to afford in¬
vestment personnel. The Pennsyl¬
by banks and supervisory authori¬
vania
Bankers
ties
lieve,
put
alike.
We
cannot
the
escape
Association, I be¬
the minimum size at
York
New
City,
1955.
significance of the fact that there
$5 million; and many of the trust
is today on
Association,
departments
all sides
willingness
a
in New
York
trust
mutual
a
investment
company.
That is a
coined for the purpose.
You will find it defined in Chap¬
ter 619 of the Laws of 1954 of the
phrase
we
New
York.
mutual
A
has
company
distinguishing
character¬
istics:
(1)
Its shares
banks
be held only
may
serving
in
fiduciary
a
capacity
as
trustee,
or
committee.
portfolio
executor,
limited
is
which
that
means
to
legal
are
it
will
State
(3)
will
It
be
re¬
and
examined
the
by
Department.
Banking
State
That, by definition, is
mutual
a
trust investment company. It will
be run by a board of bankers,
serving without compensation, at
least
one
from
each
of
whom
of
the
the
of
graphical
must
nine
State.
The
diversification
geo¬
of
the
features
particularly commented
by the Federal Reserve Board.
on
We had
ing
Jan.
on
11-man
organization meet¬
our
24,
board.
Of
directors
outside
thermore,
an
number,
from
banks
York
City. Fur¬
majority of the five-
a
executive
man
that
are
New
of
elected
and
committee*
are
from upstate.
The
on
bank
package
a
will
or
employ
one
trust company,
basis,
contract
to
custodian, investment ad¬
viser, and corporate trustee. The
serve as
chesapeake & ohio
new haven
fee of the custodian bank will be
deducted
new york central
pennsylvania
,
before
frorp
it
is
holders.
southern
pacific
fails!
on
the financial pages!
This is the flat statement made by Thomas G. Campbell,
valuation and
author of the
the
leading duthority
railroad finance and
on
issued
he
Campbell been
Now he takes
developments
so
you
now
his
Report entitled "Coming
Boom
in
behind the
building
up.
have
not
this connection, it is clearly
understood that shares in the Bank
In
Fiduciary Fund
in
to be used for
are
bona fide fiduciary purposes only.
The words bona fide appear often
in the regulations of the Banking
Board and in the record of our
meetings with the Federal Reserve
Board.
use
I
certain that
am
Basic
Some
Complexities
That, briefly, is our plan; and
as you see, it is really very simple.
The plan itself was more or less
agreed upon in New York State
nearly two years ago.
time,
have
we
been
Since that
considering
the basic questions of policy which
it raises—the philosophical com¬
which
plexities
moment
For
why
mentioned
I
the
fund
a
ago.
example,
you
when
some
ation
wonder
may
have to form
we
a company,
or
informal associ¬
more
cooperative effort might
We believe that in¬
corporation is the key to the solu¬
be attempted.
tion
of the
problem of the estab¬
lishment of
for two
trust fund
common
a
more
or
banks.
Informal
arrangements lead to confusion
as
to the distribution of responsibil¬
ity among the participants, and
they complicate the problem of
fairly allocating the costs of the
undertaking.
A corporation has
:
(1) The mutual trust investment
company
tween
draws a clear line be¬
responsibilities of the
and of the bank fiduci¬
the
company
The
aries.
which
company
we
propose
their
of
other
no
will be permitted.
the
par¬
will
is¬
be
to
need
no
help in
relationship with
their customers.
They need only
investment management.
In pur¬
chasing shares in an investment
company, it is obvious that they
are
not
sharing the balance of
personal
their duties
as a
trustee.
December
1950
has
participating banks, and
will be registered in the names of
the banks' ndminees. They will
Mr.
,
in five separate Studies, spelling out for
\
He includes specific
scenes
you
carries with it the tax exemption
which is
a
prerequisite to any
solution
the
certain as-yet-unknown
registered in the
This
trusts.
will
of
names
the
reduce
number of registered holders from
thousands 4o less than 200
many
PRICE PROJECTIONS FOR
They will undoubtedly
which we
yet imagined.
be useful in other ways
not be
Rdils" in
aroused at the market possibilities of the rails.
trusts.
ary
The small banks
That is another
policy on which we
of
Shares
sued
memorable
investments, the shares will be
appropriate for many discretion¬
stock¬
thought long and hard.
Compendium for. 1953."
Not since
beneficiaries
matter
widely acclaimed "Hidden Values in Receivership Rails" and "Campbell's Rail
professional men and others, mak¬
ing a start on an estate planning
program. They will be helpful in
small profit-sharing
trusts.
Al¬
though limited to New York legal
means
ticipating trusts.
That's what's in the making for these five
ful in small inter vivos trusts for
to
that the cost of the plan is borne
by
Headlines
amortization payments. They
gage
this
that
handy
segregates investment du¬
income; ties from all other responsibilities.
portfolio
distributed
Notice
shares
will start at $100, which is a
these three advantages:
directors
qualified
FORECASTS EXCITING NEWS ON
.
the
of
size for the reinvestment of mort¬
come
banking
board of directors was one of the
eight
AUTHORITY ON RAILROAD VALUATION
/
value
unit
The
for
be
stricted by law to 35% in common
stocks.
regulated
Fidu¬
Bank
ing Department's regulations, that
trustees in the State of New York.
This
districts
I don't know how
pro¬
cedures of the trust
it has been
trusts in one basket
your
have
you
no
is an
described
fund
no
trust fund
common
a
are
Division
department,
There
There is
plan for a mutual fund
within the banking system is very
simple, but it raises several funda¬
Trust
full-time
one
man.
if there
the
in
thought of
variety of fiduciary purposes.
State, two-thirds of
investment
no
nor
wide
a
Fund
the
into guardianships and veterans'
committeeships. They will be use¬
philosophically complex.
by
in
de¬
and
brief¬
that it is
and
only
will see
mechanically
simple
in
participation
will be small enough to fit readily
first describe the plan very
and
trust
common
policy
cided in the past three years. Be¬
fore talking about policy, let me
investments
fund
Our
of doing
to change
way
ways.
lieve
of the
serve
Service
This
themselves.
guardian,
(2) Its
attempt
no
we
trust fund for nine banks out
mon
basic
a
of several matters of
of ten.
the
sympathy
I think I
purpose.
our
Albany and
with whom
one
participating
policy involved in
which are not
equipped
one
full $100,000
a
ciary Fund. Under the State Bank¬
banks
The Bank Fiduciary
Fund, therefore, will be the com¬
involved. The common
fund proved to be an instru¬
for use by a few relatively
large banks.
are going
Where it goes beyond
familiar legal boundaries, we have
changed the law. As a result, the
fund is especially tailored to the
needs of tne banks; and we be¬
Cnaries W. BueK
of
Washington. Every
we
of
ment
things,
supervisory
authorities
question
ly,
might have
participation in a
cannot happen.
equipping
fully
which
fund and also desires an additional
We realize that there is
is
Thursday, March 3, 1955
.
management
the
three
our
Associa¬
tions,
But the great ma¬
banks
a
group.
trust
fers
Association,
Bar
separate supervision
outside
be
.
of those
it brings
because
investment
its early
If the fund lives up to
to
the
of
can
which
afford
banks,
it
will
many
investment
habits
rogat es'
u r
with
of
compromise.
of course,
also
the
but
smaller
plan is neither a makeshift nor a
have
bank¬
many
useful tool for
very
The
figure.
Fund
State
tion
had the active
ers,
they
own
my
that
promise and proves to be a solu¬
to the problem of investing
funds in small trust departments,
it will succeed only because the
has
popu¬
assistance
one
under
Fiduciary
trust
•
undertak¬
lar
the
Bank
expenses
depart¬
a
not
could make
good use of common trust funds
if only they had a sufficient num¬
ber of suitable trusts to justify the
season.
small
been
pur¬
of the separate invest¬
the
of
jority
of. parents
in small trusts
ments
State,
of which
banks,
of small trusts.
in
whose daughter might prove to be
and
trust
primary
U. S. Trust Company is one,
the luxury
debut
off.
left
There may be a hand¬
trust fund.
prevails in
trust funds.
Stresses, however, the "Bank Fiduciary
not accountable to the courts, but it will be examined
report to you, it is that
its
has
bank in ten has set up a common
limited by law to $100,000 per trust, as
If there is any one
fund
trust
ment and the
should
Trust
may
poses.
annually by the State Banking Department.
I
Common
have read that
intend it to pick up where the
That
open-end mutual fund, it will
"common trust fund";
a
You
common
up
Man's
"Poor
Fund."
well
are
from
"
have heard our fund
described, rather inaccurately, as
the
•
de¬
trust
small
and
may
Prominent New York trust executive describes the organization,
explains the
of investing funds in
trusts
You
Vice-President, United States Trust Co., New York City
open-end mutual fund, set
ac¬
and,
partments.
By CHARLES W. BUEK*
,
practices; to
in fact, to
whatever is necessary to solve
cept
.
and?
1955
is
important^
an
economy
-measure.
(2)
investment
An
the
of
problem.
beneficiaries cannot
to double taxation.
which
company
company
be
Trust
subjected
An investment
distributes
of its income is not
95%
subject to Fed¬
,
..These
any
new
Studies
are
just off the
press.
Any
one
three for $12 and all flvfe for $18.
analysis
.
available
[
at
$5
per copy;
on,:
52
Broadway, New York 4, N. Y..
it will act much
Participations
law
to
mon
me
the
following Rail Studies.
*
CHESAPEAKE & OHIO
□
NEW YORK CENTRAL
-
,
□
'•
SOUTHERN
NEW HAVEN'
PENNSYLVANIAj
now
■
i
Q
i
□
I
-
leave the
I enclose
$
in foil payment.
i
□
for
I
(Residents*of N. Y. City add 3% for sales tax)
i
Name
the
*.
.j.......
.
State
fund
any?
next
fund
bank
common
i
City.......
limited
applies
by
methods
it.
of
The
trust.
per
to
be made
will
have
quarterly
confines
may
Other
less
association
formal
present
com¬
quar¬
to
LAMBORN & CO., Inc.
99
WALL
STREET
NEW YORK 5,
N. Y.
wait
valuation
net be used by
operating
trust fund.
its
use
to
|
B-33
benefiting from partici¬
in
SUGAR
*
The
i
1'
Street
the trust
date.
'
*
of the
expenses
■.
terly, beginning May 1. We are
deliberately avoiding the busy
calendar year quarters.
As you
know, a trust desiring to enter or
I
PACIFIC
a
(3) The limited
corporation will be borne only by
trust funds.
Valuations will
i
Please send
*
are
$100,000
limit
same
HAnover 2-3802
i
like
more
trust fund..
eral taxes.'
pation
I
*
to
common
Thomas G. Campbell Co.
Incorporated
that
point, the Bank
Fiduciary Fund will look like an
open-end mutual fund. From there
Up
need it, but also
j
lem' of what to do
a
suitable
Thfe not
Raw
—
Refined
—
Exports—Impart*
only
banks- which
avoids the prob¬
about
a
trust
DIgby 4-2727
Liquid
Futures
Volume 181
Number 5408
The Commercial and Financial Chronicle
..
1019
problems of cost
accounting, which
might lead to an inequitable dis¬
tribution of expenses either
within
the fund or in trust
departments
This
the
that the bank which
means
participates
fund
of
one
risks
its
trusts
such
investment, provided, howthe net aggregate amount of
moneys
of any estate, trust, or
in
surcharge if such
outside of it.
of
fund
action is improper under the terms
The matter of the
segregation of
responsibilities raises two ques¬
tions: (1) To whom is the com¬
accountable? and (2) What
the responsibilities of all
par¬
pany
are
ties
concerned?
One
lawyer
we
talked to put it
more
simply.
"Just
tell
me
one
thing.
Whom do I surcharge?"
stockholders, who
the partici¬
themselves.
It will
pating banks
be examined
are
annually by the State
Banking Department, much in
manner
of
common
a
partment
of
the
trust
a
trust
will
fund.
recommend
The
in
the
The Bank
Fiduciary Fund is not
surcharge, for it is
merely offering its stock for sale.
subject
to
It cannot be held
than
makes
its
liable,
any more
General
be
can
Motors Corporation
liable, if a trustee
improper investment in
held
an
shares.
bankers
You. will
serving
the
on
that
agree
board
the mutual trust investment
pany,
without
as
public
a
question.
bank
another
order
philosophical
the
which
has
trustee
as
New
some
to
against
York
lem
to
of
the
readily,
but
law
An
partment.
regu¬
shares
same
a
New
i
trust
fund
(m)
com¬
applying
of
section
is
in
the question
section
right
follows:
invest
may
shares
a
of
or
or
are
re¬
very much
of
There
was
son
mutual
or
would do
careless,
per¬
something improper
or
would
fail
to
do
is
additional
pay
in
no
the
Bank
plausible
of
Fiduciary
possibility
Investment
banks,
investment
of
is
a
information
from
brokers,
and
published
services, sometimes supplemented
group,
by
is
to
the
pay
bank
advisory
an
share
the
or
service
not entitled
to
a
at
is
a
natural
They
it; but it is
,
reason
pay
un¬
We
The money is
is
be
judgment.
more
from
this
or as
a
for
having
negligence
-
.
•
Furthermore.,
would
the
throw
surcharge
a
the
are
fund
offer to sell
The
nor a solicitation of an offer to buy
offer is made only by the Prospectus.
*-*'
itself
"
any
Continued
on
of these Debentures.
*
'
'
.
the
burden
'
.
^
of
principal
of
$250,000,000
remaining in the
fund.
Finally, the investment
cannot itself
have
no
be
capital,
accumulated
no
no
surplus, and
reserves.
But is this sbsence of
ability
sion for
surcharge
fund
a
weakness?
a
invested
ments
under
the
occa¬
there be, in
invest¬
can
in
of
$50,000,000 Five-Year
legal
scrutiny of the
Banks, and re¬
bankers
advised
by
by
of the most qualified banks
state?
DEBENTURES
surcharge-
What
Superintendent of
viewed at regular intervals
board
General Motors Acceptance Corporation
companv
liable, for it wiB
without
to
recourse
April 1, 1960
.
the
$200,000,000 Seventeen-Year
Debentures Due 1972
surcharge,
Dated March
better protection
from the uncer¬
tainties of business and the mar¬
kets than they now
have, invested
separately and
Due
Interest payable October 1, 1955 and each
April 1 and October 1 thereafter
Surely this well diversified
will afford its
participants,
fund
'
a
one
in
serutnebeD3
Due I960
Dated March 15, 1955
in small
15, 1955
Due March 15,
...
Interest
amounts.
1972
payable March 15 and September 15
Two Lines of Attack
There
ing
two
are
disease.
a
of attack¬
ways
One is to eliminate
the cause; the other is to
improve
the cure. If we can eliminate the
of
funds,
for
the
charge.
there
will
bitter
be
and Accrued Interest
need
no
medicine
of
sur¬
Furthermore, most of the
losses
which
counts
are
ligence
the
Price For Both Maturities lOOJo
of losses in the management
cause
in
occur
trust
ac¬
not caused by any neg¬
improper
or
law
affords
action;
no
Copies of the Prospectus
and
be obtained from only such of the undersigned as may legally offer
compliance with the securities laws of the respective States,
may
these Debentures in
protection
against them.
Bank
To that extent, the
Fiduciary Fund provides ad¬
ditional
forded
safeguards
not
now
af¬
by the courts.
even
MORGAN STANLEY & CO.
Although the fund is not subject
to
surcharge, the individual bank
is
not
relieved
ity.
The
552,
as
of
statute
all
DILLON, READ & CO. INC.
responsibil¬
THE FIRST BOSTON CORPORA TION
KUHN, LOEB & CO.
reads, in Section
BLYTH &
follows:
CO., INC.
DREXEL & CO.
EASTMAN, DILLON & CO.
"Accountability. A mu+ual trust
investment company
responsible
investment
ciary who
or
shares
for
for
of
powers
may
and
any
in
tions
in
violation
not
be
instrument
of
in
the
a
the
will, deed,
any
restric¬
or
absence
accountable
the fiduciaries who
are
of
SMITH, BARNEY & CO.
ac¬
STONE &
UNION SECURITIES CORPORATION
only to
the owners
shares."
SALOMON BROS. & HUTZLER
WEBSTER SECURITIES CORPORATION
other
shall
or
LEHMAN BROTHERS
fidu¬
and
stocks
LAZARD FRERES & CO.
MERRILL LYNCH, PIERCE, FENNER & BEANE
liable
knowledge of such violation,
of its
HARRIMAN RIPLEY & CO.
Incorporated
KIDDER, PEABODY & CO.
fidu¬
tual
be
GOLDMAN, SACHS & CO.
the
purchase its stock
shall
accepting funds from
ciary
GLORE, FORGAN & CO.
shall not be
ascertaining
March 3,
i
1955.
customer
right in making trust ad-
simply not avail¬
surchar°», for
the
on
other trusts
an
j
cannot be subiect to
that
This announcement is neither
case
mis¬
or
.
con¬
overriding
the
and
group, except in
conduct.
to
the cost of this undertaking.
service, cannot be
surcharge person¬
of their willful
likely
practical
one
made subject to
ally
doubtful
willing to
commission
investment
would
Aside
unrealistic;
careful analysis, it is
it
trustees'
sideration, there is
to
sound.
of
fee
a
bump along with savings bonds.
full
way
their
top-level
banks
the grounds that
on
themselves,
com¬
compensation
on
for the sake of diversification and
considered
we
commission unless they did all the
on
is
now
correspondent
product does not satisfy the
participating
That
assume
problem.
Although the final invest¬
At first
the
govern¬
common
we
basis.
cost; the
were
work.
look
see
diversification
gathered
assigning du¬
use
lawyer. However,
a
"Who
the bill,
they
and,
We
that
The
limited, and
whether they would be
be held responsible for his actions.
Fund
seen
not dele¬
is
fully
rather
low-yielding
bonds.
stocks
banks
something, and that he could not
prohibits
it,
are
perhaps
now,
in
question
a
delegate his
lying idle. They
heavily
ment
having
trustee may not
not
invested
calling in investment specialists is
customer?"
a
are
de¬
going to cost money; and the next
were
been
lack of personnel, the trust funds
it might heretofore
as
have retained
always the fear that another
the order,
held
It has
duties to any one else.
judgment under which
moneys
it.
spite of their difficulties and their
sur¬
see
have
management
•
we
we
assigning
a
that
for
investment company except
or
doing
is
to
cardinal rule in the trust business
fiduciary
a
in
of whether
It
duties
one,
21
the small trust depart¬
Many of them are deep in
red, and many more are just
about breaking even.
Howevef, in
ment
As
gating duties; it is
again, the action taken
simple; but there remained
was
Legals.
in
the
Banks,
top-level trust
a
it, the individual bank is
the
subdivision
able
ments.
Its investments will be
York
ties.
in
of
of
?and as the authorities
man¬
legal
the personal property law."
eligible fiduciary
where the instrument
such
a
as
legal iinvestments
fiduciaries
decree,
Such
investments in
as
paragraph
in
there
by adding
invest moneys held in
trust
board.
shall be treated in the
opposing it.
statute, reading
capacity
veillance of
amount
be promulgated by
directors
delegation
State,
case
"Shares
or
may
its
disposed of the legal prob¬
our
may be
Here
plenty of
We
as
Fiduciary Fund. There
law
no
maximum
limitations
of the Bank
isa
as
Superintendent
The
annually
it will be under the
constant
participates in the
delegated
mon
duties
the
as
banking
ner
fund
sum
impropriety.
examined
tervals by a board of
bankers, and
time exceed $100,-
such lesser
or
the
be
it will be reviewed at
regular in¬
to
You will recognize that
fiduciaries.
-
in
by
or
will
such
of
permitted by such rules and
for
fund
whole.
a
income
or
shares
of
lations
Now
not undertake to
endorse
or
port¬
000
participate.
De¬
the
sacrifice
in
fund
trust investment
company
shall not at any
fixed
principal
or
verify the legality
investments
folio, but it will
as
the
department
inordinate
an
invested
mutual
Further¬
it may be held liable if it
incurs
a
The Bank Fiduciary Fund is not
accountable to the court.
It is
accountable only to the registered
trust instrument.
more,
He
said,
the
negligence
1
ever,
7
WHITE, WELD & CO.
page
47
8
The Commercial and Financial Chronicle
1020
showing
Over-the-Counter Index—Folder
yieid
Recommendations & Literature
that the
understood
send interested parties
to
Circular — Bache & Co., 405
17, N. Y.
' ,
letter featuring information of
Activities
Atomic
—
News
Council of the
Asso¬
authorized the issu¬
Security Traders
have
of
ance
Bulletin," on a
"Traders
a
& Co. Incorporated,
Y.
1 Wall Street, New
\
5, N. Y.
-
It Is Applied—4-color sheet
What Atomic Energy Is and How
listing of 100 atomic stocks—Atomic Development Se¬
Co., 1033 Thirtieth Street, N. W., Washington 7,
with
significance relating to the atomic and electronic age—Na¬
Securities and Research Corporation, 120 Broadway,
Executive
ciation
Y.
TRAD¬
ASSOCIATION
National
Vilas & Hickey, 49
—
Industry—Bulletin—Cohu & Co.,
York
—
Lexington Avenue, New York
Comparison
Broadway, New York 38, N.
150
Textile
Advantages of Mutual Funds
—
Index—Amott, Baker
Stock
Estate
Real
SECURITY
ERS
The
Bonds
Income
Street, New York 5, N.
Wall
will he pleased
the following literature:
firms mentioned
Thursday, March 3, 1955
.
NATIONAL
York 4, N. Y.
Railroad
.
NSTA Notes
market performance over a 13-year period —
Quotation Bureau, Inc., 46 Front Street, New
and
National
is
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
Dealer-Broker Investment
It
an
.
curities
tional
D. C.
New York 5, N. Y.
Banks
&
and
Shares—Annual
Bank
Bond Market
—
Bulletin
Canada's
Iron
i
New York Hanseatic Corporation,
—
Chemical
Allied
Chemical
&
Company, Ltd., 355 St. James Street, West, Montreal, Que.,
Canada. Also available is an analysis of Bowater Paper Cor¬
American
poration Ltd.
Baltimore &
Chemical Industry—Analysis—Ross,
Canadian
60
Knowles & Co.,
review of the Canadian Securi¬
Market—Newling & Co., 21 West 44th Street, New York
Analysis
—
Magma Copper Co.—Sutro Blos. & Co., 120 Broadway, New
York 5,
with
Chugoku Electric Power Co.,
to
reference
Co., Ltd.—Nomura Securities Co., Ltd., 61 Broad¬
New York 6, N. Y.
Chuo-ku, Tokyo, Japan.
way,
Foreign
In
current
issue
Securities
Co.,
Tokyo, Japan.
of
Stock
Japanese
"Weekly Stock Bulletin"
Ltd,,
The Nikko
—
Marunouchi,
1-chome,
4,
Market—
Chiyoda-ku,
research
report
in current issue—Har¬
Business
vard
Review, Box 803-FC, Soldier's Field, Boston
63, Mass.—$8.00 for six issues, plus "How to Increase Execu¬
months
Stocks—Tabulation
ended
of
Dec.
31, 1954
Street, New York 5, N. Y.
Investment Opportunities
rities
Life
in
operating results for the
—
Blair &
12
Casualty
Insurance
per
Tennessee—Anal¬
.
folios
Bissell
&
-
Corp.—Analysis—John R. Boland & Co.,
Street, New York 4, N. Y.
Co.—Memorandum—McDonnell & Co., 120 Broadway,
5, N. Y. Also available are memoranda on Gen¬
Corp., Oliver Corp., and Sinclair Oil Corp.
York
Cable
State Oil—Circular—Hay, Fales & Co., 71
Empire
York 6,
New
in
Corp.,
Dependable Markets in
of Philadelphia—Brief analysis—Thomson
Adds Four in NYC
&
& Co., 120
York City, mem¬
bers of the New York and Boston
Stock Exchanges, announced that
John P. Mellor has joined their
organization in the Bond Depart¬
Broadway, New
pany.
Co.—Report—Schmidt, Poloe, Roberts & Parke,
Street, Philadelphia 9, Pa.
Over-the-Counter
Broad
Batteries Inc.—Data—Lewis
Dry
available is
2-
2400
Members: N. Y. Security Dealers Association
74
NY
1-
Ilazel
376
Trinity Place, New York 6, N. Y.
Atlas
offering of these shares for sale,or an offer to buy, or a solicitation of an offer
The offering is made only by the Prospectus.
to
buy,
any
of such shares.
Memorandum
on
ing
Also
Laclede Gas Co.
Limited
—
Glass
South La
Company
J. R.
Analysis in current issue of
—
and
a
list of 40 selected "Quarter
Co.—Card
Memorandum—G. A.
HOUSTON, Tex.—J.
Co.
—
Northern Indiana Public
Memorandum
—
Leason
&
Co., 39
Chicago 3, 111.
Service Co.
—
Memorandum
—
R.
Engineering
Philips Lamp
Wall
—
Memorandum
—
W.
firm
Salomon Bros. & Hutzler, 60
on
page
have
Building,
has
poration,
Continued
Company,
also
installed
wire to New York
Street, New York 5, N. Y.
Company
R. Phillips
State Na¬
opened a
new
Trading Department under
the direction of John S. Weatherston and John A. McDonald. The
tional
70 Pine Street, New York 5, N. Y.
Salle Street,
Phillips Opens
New Departmenl
Investment
Sax-
Pressprich & Co., 48 Wall Street, New York 5, N. Y.
The Reliance Electric and
formerly with
Sons, 173 Portage Avenue, East, Winni¬
Utilities
& Co., Inc.,
ton
was
Hanseatic Corporation.
New York
—
Payers."
Southern
Iowa
Nielsen
Department.
Mr.- Nielsen
Review
Stock
Hike in the
and Soren D.
Kidder,
—
and Royal Bank Building, Toronto, Canada.
Manabi Exploration
50,000 Shares
—
Alabastine, Canada,
Natural Gas Company
Century
not an
C.
Rowland
Department
in the Trad¬
Department,
Municipal
80
"Gleanings"—Francis I. du Pont & Co., 1 Wall Street, New
York 5, N. Y. In the same issue is a brief analysis of South¬
ern
This is
&
Canada
peg,
Inc.,
Street, New York 5, N. Y.
memorandum
a
James Richardson &
Truster, Singer & Co.
Co.
Manufacturing
& Co., 17 Wall
Peabody
Gypsum, Lime
HA
Stoehr,
Street, New York 4, N. Y.
Gustin-Bacon
Securities
&
Talmadge, Jr. in the
ment, Prentice
123 South Broad
General
Anthony
Tucker,
Socony Vacuum Oil Company, Southern Company,
Company, and F. W. Woolworth & Co. Also avail¬
a bulletin on Southern Indiana Gas & Electric Com¬
Foote Mineral
elsewhere
"Chronicle.
Tucker, Anthony Co.
Swift &
is
appear
today's issue of the
Broadway,
N. Y.
Association
able
dinner
the
at
McKinnon, 11 Wall Street, New York 5, N. Y. In the same
bulletin
are
brief analyses of Olin Mathieson
Chemical
-
of
ciation
Sons, 210 Broadway, Long Branch, N. J.
Weston &
Fire
Asso¬
Philadelphia reports a
most successful dinner on Feb. 25
with approximately 450 members
and guests in attendance, estab¬
lishing a record.
Pictures taken
Investment Traders
The
for single analysis, any three $12.00 and all five
copy
New
Meeds, 120 Broadway, New York
.
INVESTMENT TRADERS ASSO¬
CIATION OF PHILADELPHIA
Fidelity Union Trust Co. of Newark—Memorandum—I. George
;
City Banks—Breakdown of government bond portand sources of gross income of 16 New York City
Banks—Laird,
5, New York.
Incorporated, 52 Broadway, New
Co.
$18.
30 Broad
322 Union Street,
.
Campbell
Cinerama Productions
New York
;
G.
eral
of
4
4, N. Y.
Deere &
Company
'
Also available are studies of New York Cen¬
tral, New Haven, Pennsylvania and Southern Pacific—$5.00
Sec-
ysis,— Equitable Securities Corporation,
Nashville 3, Tenn.
\
/
vV
Schapiro & Co., 1
are
material
tribute
Chesapeake & Ohio—New study—$5.00 per copy—Dept. B-33,
York
urged to con¬
of interest to
N. S. T. A. for publication of the
forthcoming or later issues. Ma¬
terial for the March issue of the
"Bulletin" should be sent in be¬
fore March 11, 1955.
Members
Bakeries, Inc.—Bulletin—Sand¬
1309 Main Street, Dallas 2, Texas.
of proposed plan of merger—M. A.
Wall Street, New York 5, N. Y.
Philadelphia, are
Co.,
&
co-chairmen.
Associated
National Bank-Bank of the Manhattan Company—Anal-
re¬
question "What does
N
S T. A. do for its members.
It will be edited and issued under
the jurisdiction of the Publicity
Committee of which George J.
Muller, Janney & Co., Philadel¬
phia, and Joseph E. Smith, Newburger
Co., Inc.,
t
ysis
Co., Ltd., Ill Broadway, New York 7, N. Y;
and
& Newsom,
ers
Co., Inc., 44 Wall
Japan—Circular—Yamaichi
A
t
Friedman &
Mine—Report—L. D.
&
Campbell-Taggart
for
tive Effectiveness."
Insurance
Oil
Thomas
Stocks—New
Growth
the
k
Manufacturing Company—Bulletin—Reynolds
Broadway, New York 4, N. Y.
52
Chase
Through
Investment
1-1 Chome, Nihonbashi-Tori,
and
& Gannon, Inc., 161 Denvon-
Co., 120 Broadway, New York 5, N. Y.
Bonanza
will
curring
—
Street, Boston 10, Mass.
& Decker
Black
Ltd., Ilokuriku Electric Power Co., Ltd. and Hokkaido Elec¬
tric Power
quarterly basis. The bulletin
be
designed to answer the
Street, New York 5,
15 Broad
Co.,
&
Son, Inc.—Analysis—May
shire
&
particular
Loeb
Joseph E. Smith
George J. Muller
Ohio—Analysis of development of common stock
Analysis — Wm. J. Mericka
Co., Inc., Union Commerce Building, Cleveland 14, Ohio.
Bird &
N. Y.
Utilities in Japan—In current "Monthly Stock Digest"
Electric
f
Street, New York 4, N. Y.
Beaver
&
particular reference to
with
of outlook
T.
Corporation—Analysis—H. Hentz & Co.,
Bingham Ilerbrand Corporation
■1
36, N. Y.
Copper
'C:f- 'k ,C:':.•
New York.
Canadian Letter—Fortnightly
ties
Co., 120
Corporation, 61 Broadway, New York 6,
Hardware
—Newburger,
Canada.
Ltd., 25 Adelaide Street, West, Toronto 1, Ont.,
&
report—Allied
Corporation—Annual
Dye
&
Dye
New York.-
Thomson and
Walston
Analysis
—
Broadway, New York 5, N. Y.
,
Industry— Analysis—Nesbitt,
Ore
Products Incorporated
Air
N. Y.
Broadway, New York 5, N. Y.
120
study—Blyth
Comparative
Co., Inc., 14 Wall Street, New York 5,
9
120
a
direct
Hanseatic Cor¬
Broadway,
New
York, N. Y.
Common Stock
Par Value $5 Per Share
SXcummx jijeatriltes
DEPENDABLE MARKETS
©o., %M.
Price $41.50 per
share
Member
Producing Quicksilver Mine
N.AJ3.D
Broker and Dealer
Copies of the Prospectus
may
Bonama Oil & Mine
Trading Markets Maintained
Material and Consultation
be obtained from the undersigned.
•
/
Report
on
on
request
Japanese Stocks and Bonds
Blyth & Co., Inc.
without
61
March 2,1955.
obligation
L.D. FRIEDMAN & CO. Inc.
Broadway, New York 6, N. Y.
Tel.:
BOwling
Head
Green
Office
9-0187
Tokvo
DEMPSEY-TEGELER & CO
52 Broadway,
New York City 4, N. Y.
Telephone DIgby 4-0860
Volume 181
Number 5408
..
.
The Commercial and Financial Chronicle
themselves will be
Is
down to
Sterling Now Convextible?
PAUL
By
a
Fund
tion
settle
Possibly
it
profitable
to
by the British Chancellor of the Exchequer to
transferable sterling, Dr. Einzig
says this is a more important step in de facto sterling converibility than the increase in the bank rate or restrictions
on instalment selling.
Asserts new order gives the Bank of
England a free hand in exchange operations.
operate in the markets for
—
dramatic reactions to the increase
constitute
of the Bank rate to
time
to
bears,
on
in
4%%, and to
departure from the policy of
b y
ing to a return to a de facto con¬
vertibility of sterling.
Much depends on now the gov¬
re¬
ernment's
strictions
o n
preted
i
ent
limits
n s
t
1
a
m
business,
Mr.
measure
defense
f
will
the
Equalization
have
free
hands
Fund—
in
its
ex¬
change operations. If it should in¬
terpret its role as aiming at rais¬
ing the rates for transferable ster¬
day when the
three
the
instructions
practice operates the
Exchange
unno¬
as
in
meas¬
an¬
ling to the vicinity of the London
nounced.
This
measure
con¬
quotations, and maintaining them
at that level at all costs, then for
all practical purposes transferable
sterling would become freely con¬
ures
were
sisted
_
Dr.
Paul
i
ninzig
n s
of
the
t ructions
given
the
to
into
vertible
Exchange
dollars
at
the
mar¬
Equalization Fund to
future in the markets
for transferable sterling. Yet it is
by far the most important step.
The Bank rate may be reduced
any day.
The restrictions on in¬
stalment business are very mild—■
a minimum deposit of 15% and a
maximum repayment period of 24
ket rates supported by the author¬
ities.
Any holder would be able
months does little
be
operate in
firm
the
terms
more
that
than
to
buy
dollars
at
the
prevailing
sterling-dollar rate, for if there
are no private buyers at that rate
the British authorities will step in
to
prevent the
discount
development of
a
transferable
sterling.
At the time of writing it would
con¬
premature to form
how
actually
in operation in the large majority
are
on
the
new
an
opinion
arrangement
will
work.
It may take weeks, possi¬
bly months, before the authorities
of instances. But the official oper-
any
New York Hansealic
Wire to
the credit restrictions remained in
would
to
be
the
convertible
for
this
without exposing himself
violent onslaught by all op¬
ponents of convertibility he could
skill¬
more
The fact that such smart
opponents as his predecessors, Mr.
Gaitskell and Dr. Dalton, failed
to
grasp the significance of the
change when it was announced,
shows
that, if Mr. Butler had
Machiavellian designs in this mat¬
fully.
ter, he certainly got
it
But
this
with it.
away
whether
doubtful
seems
in fact his intention.
was
so.
West
Seventh
Inc.,
Log
Street,
Angeles, Calif.
Continued
from
8
page
Dealer-Broker Investment
new
ibility
proceeded
determine whether they will
keep
Butler wanted to restore convert¬
have
York
direct private
a
seen.
policy is to. make commodityshunting unprofitable. But if Mr.
not
City, has installed
Corpora¬
New
do
The declared object of
a
Broadway,
210
squeeze
holders outside the Sterling Area.
to
120
Pledger Co.
Hanseatic
during
remains
become
tion,
York
wire to Pledger & Company,
occasions
It
October 1956.
New
will
to
sterling at par with
the London market rates, then for
all
practical
purposes
sterling
inter¬
Within
and applied.
the broad
of
—which
passed
almost
ticed
o
are
given by the Chancellor of the
Exchequer, the Bank of England
third
Butler's
instructions
rate
long as
unemployment resulting from
so
successfully
so
But if the official policy is to
freedom
,:
Bank
But
Economic develop¬
ments within the next few months
order
it did
as
many
'thirties.
imposing
the
the
existence it would be inexpedient
the
decisive step amount¬
a
time
be reduced.
for the government to risk a gen¬
eral election. They are in a posi¬
tion to defer it, if necessary, till
time
ations in transferable sterling may
Amidst the
which
could
in
engage
transferable
LONDON, Eng.
by
commodity-shunting. Perhaps the
idea of the Exchange Equalization
Fund is not to keep the rate rigid¬
ly pegged but to intervene from
instructions given to the Exchange Equaliza¬
on
to
able
routine.
new
small discount may be tolerated
wide enough, however, to
make
Commenting
a
—not
EINZIG
9
1021
For
it would be boldness amounting to
Recommendations & Literature
Placer
Development Ltd.—Memorandum—Hemphill,
Noyes &
Co., 15 Broad Street, New York 4, N. Y.
Public Service
&
Co. of New
Hampshire—Highlights—Ira Haupt
Co., Ill Broadway, New York 6, N. Y.
Gair
Robert
Co.—Memorandum—Hirsch
New York 4,
Shamrock
&
Co., 25 Broad St.,
N. Y.
Oil
Gas—Bulletin—J.
&
R.
Williston
&
Co.,
115
Broadway, New York 6, N. Y.
Southeastern
Telephone
Fourth
33
Strategic
Co.—Memorandum—Beil
Street, North, St.
Corp.—Special
Materials
Hough,
&
Petersburg, Fla.
report—Straus,
Blosser
&
McDowell, 30 Pine Street, New York 5, N. Y.
foolhardiness to take this moment
for returning
deliberately to con¬
vertibility. Mr. Butler has enough
troubles just now without having
add to them by exposing ster¬
ling to such additional pressure.
to
Techbuilt Homes, Inc.
it
tion
of
that
it
reasonable
seems
that
sume
this
the
"crime
not
was
sidered
not
was
of
Mr.
intention
to
1873," and
Butler's
to
—
Aetna Securities Corpora¬
of "Business
and
Financial
Digest"—Loewi & Co., 225
as¬
repeti¬
a
Analysis
Wisconsin Power and Light Company—Analysis in current is¬
sue
So
—
tion, 111 Broadway, New York 6, N. Y. Also available is a
card Memorandum on Zonolite Company,
con¬
smuggle
in
surreptitiously un¬
der the guise of a technical meas¬
East Mason
a
discussion of Roadbuilding
and Equipment Supplies, with
particular reference to Allis Chalmers Manufacturing Com¬
and
Erie
Bucyrus
pany,
convertibility
In its effect it may work out,
however, in that sense.
Fortu¬
nately for Britain, Mr. Butler did
not commit himself
to de facto
In the same issue is
Street, Milwaukee 2, Wis.
Ilarnischfeger
Company,
Corporation
Koehring Company.
ure.
This is not an
offering of these shires for sale,
The
offer to buy, or a solicitation of an offer
offering is made only by the Prospectus.
or an
to
buy,
any
of such shares.
This is not
an
offering of these, shares for sale, or an offer to buy. or a solicitation of an offer to
any of such'shares. The offering is made only by the Prospectus.
convertibility by any undertaking
to
keep transferable sterling at
par.
Everything depends on the
361,922 Shares
in which the foreign ex¬
change market will respond to the
high Bank rate and the other dis¬
inflationary measures Mr. Butler
has taken or may take.
If they
should inspire confidence, sterling
Capital Stock
holders
for
reason
sterling to sell
that
Rights, evidenced by Subscription Warrants, to subscribe for these Shares at
$31.50 per Share have been issued by the Corporation to holders of its Common
Stock of record February 24, 1955, which rights expire March 14, 1955, as more
fully set forth in the Prospectus.
case
tion
Fund will
unsubscribed shares and, during and after the subscription period,
shares of Capital Stock as set forth in the Prospectus.
may
offer
Copies of the Prospectus may be obtained from any of the several under.
only in States in which such underwriters are qualified to act as
writers
dealers in securities and in which the
Prospectus may legally be distributed.
.
Common
($5
no
not have
In
Equaliza¬
any dif¬
Price $33.53 per
in
would
the
at *
in
tions
ice
of
may
sustained
been
official
transferable
these
Should
Copies of the Prospectus may be obtained from any of the several underonly in States in which such underwriters are qualified to act as
dealers in securities and in Which the Prospectus may legally be distributed.
even
Sterling
have
losses
sterling.
to be
R. W. Pressprich & Co.
Glore, Forgan & Co.
The Ohio Company
G. H. Walker & Co.
Adamcx Securities
Merrill Lynch, Pierce,
Glore, Forgan & Co.
Piper, Jaffray &Hopwood
White, Weld & Co.
Dean Witter & Co.
Paine, Webber, Jackson & Curtis
Kalman &
Company, Inc.
Goldman, Sachs & Co.
Smith, Barney & Co.
Fenner & Beane
Union Securities Corporation
4
A. C. Allyn and Company
J. M. Dain & Company
heavy, the authorities would
liberty to discontinue the
supporting operations.
They are
in no way committed to holding
transferable sterling at any level,
but will only do so when this is
considered expedient.
Much depends on the extent to
be
at
which
Incorporated
check
Central Republic Company
Clark, Dodge & Co.,
Schapiro & Co., Inc.
William Blair & Company
re¬
M. H.
Bishop & Co.
The
of foreign
"hot money"
by high interest rates is no solu¬
unless it is followed by a
marked improvement in the bal¬
ance
Phillips Co.
Mannheimer-Egan, Inc.
Baxter, Williams & Co.
Irving J. Rice & Company
Incorporated
March /,
1955.
C. S. Ashmun Company
Johnson-McKendrick Co., Inc.
Shaughnessy & Company, Inc.
of payments.
Moroney, Beissner & Co.
Wulff, Hansen & Co.
situation
on
the
pros¬
pects of a general election. Should
high Bank rate do its work
swiftly it might still be possible
for the government to face a gen¬
election
in
the
A. E. Masten & Company
Mackall & Coe
Peters,Writer & Christcnsen, Inc.
late
autumn,
Curtiss, House & Co.
Campbell, McCarty & Co.
Incorporated
_
Field, Richards & Co.
Grimm & Co.
Hawkins & Co.
Kenower, McArthur & Co.
Paine-Rice & Company
Doohttle & Co.
Wm. P. Harper & Son & Company
Metropolitan St. Louis Company
Woodard-Elwood & Company
Muir Investment Corp.
March 2, 1955.
Smith, Moore & Co.
Arthur L. Wright & Co., Inc.
*
Dixon Bretscher Noonan Inc.
the
eral
Hayden, Miller & Co.
Goodwyn & Olds
Howard, Weil, Labouisse, Friedrichs and Company
Henry F. Swift & Co.
Stix & Co.
Courts & Co.
First California Company
Incorporated
Davenport & Co.
premature to form
opinion about" the effect of the
changed
Baumgartner, Downing & Co.
Richard W. Clarke Corporation
Eppler, Guerin & Turner
Elworthy & Co.
It would be
an
Cooley & Co.
Chas. W. Scranton & Co.
Barret, Fitch, North & Co.
Yarnall, Biddle & Co.
Brush, Slocumb & Co. Inc.
Lawson, Levy & Williams
Allison-Williams Company
Jamieson & Company
Reinholdt & Gardner
Ferris & Company
Elkins, Morris & Co.
their efforts to export more.
Woodard-Elwood & Company
The Marshall Company
Dittmar & Company
John W. Clarke & Co.
J. R. Williston & Co.
J. J. B. Billiard & Son
attraction
Blunt Ellis & Simmons
Newhard, Cook & Co.
McCormick & Co.
Robert Garrett & Sons
tion,
Caldwell
Bosworth, Sullivan & Company, Inc.
duction of the inflated demand at
Incorporated
Harold E. Wood & Company
A
Corporation
Incorporated
Tucker, Anthony & Co.
home will lower imports and will
induce British firms to increase
^Pacific Northwest Company
William R. Staats & Co.
Swiss American
Sutro & Co.
Stroud & Company
will
taken
inflation.
The Milwaukee Company
Lester, Ryons & Co.
Shuman, Agnew & Co.
Russ & Company
Robert W. Baird & Co.,
Bache & Co.*
The Milwaukee Company
measures
Dcmpsey-Tegeler & Co.
Cruttenden & Co.
Fulton, Reid & Co.
Boenning & Co.
Baker, Weeks & Co.
Corporation
Brooke & Co.
Francis I. duPont & Co.
(Incorporated)
M. A.
the
domestic
F. S. Moseley & Co.
Francis I. duPont & Co.
Clark, Dodge & Co.
opera¬
prove
Harriman Ripley & Co.
Incorporated
Smith, Barney & Co.
Blyth & Co., Inc.
too
The First Boston Corporation
share
writers
vicinity of the Lon¬
very
little sup¬
possibly
Stock
value)
convertible
without
rise to
a
premium, and the authorities
may
even
recover
some
of the
gold they lost in February.
If, on the other hand, sterling
should fail to inspire confidence,
then the Exchange Equalization
Fund will have a busy time in
supporting it, at the cost of much
heavier losses of gold than those
or
support.
any
par
Corporaticn
discount.
with
rates
that
Blyth & Co., Inc.
of
a
the Exchange
remain in the
port,
agreed, subject to certain conditions, to purchase
at
Central and South West
ficulty in performing its new func¬
tions. Transferable sterling would
don
any
there will be
will be firm and
(Par Value $10 Per Share)
The several Underwriters have
600,000 Shares
way
First Bank Stock Corporation
buy,
Arthurs, Lestrange & Co.
4
1022
10
The Commercial and Financial Chronicle
after made everyone conscious of
Significance of Atomic
Energy to Business
the
Fidelity-Philadelphia Trust Company, Philadelphia, Pa.
Calling atomic energy as significant as the discovery of fire,
Philadelphia trust officer traces development of the use of
nuclear power in generating electricity as well as its uses in
business. Says major developments in the atomic age have cre¬
fits of atomic energy
The
is
advent
likened
periodic
energy
the
to
ered
discovery of fire.
Public
imagination has been
stirred by the revolutionary na¬
There
ture of the
and
fear of its
in nuclear weapons.
report
and
followed
Einstein
pertaining to
developments, and
in
atomic energy
must attempt to assess their im¬
portance and possible effects upon
form.
lives.
Weekly magazines and
periodicals feature articles
other
describing various aspects of the
atomic
tions
and
energy
of
life
possible
result
of
devastation
of
the
achievements
the
the
as
major
which
successful
who
cember,
1942,
of
the
in
first
dition
we
opment of
dustry,
consider
present
in
state
various
Dalton in 1808
ern
scientist to
In 1869
uranium
of
work
in
this
in¬
the
Manhattan
late
the
•An address
fields.
Club
of
Feb.
bomb.
step
was
first
atomic
ments
An
the
to
the
and
trans¬
projec¬
an
important
the
in
were
of
the
reactor
or
Chicago
produced
project
first
in
at
1942.
by
culminating
atomic
July, 1945.
this
in
explosion
at
Mexico,
in
New
The bombing of Hiro¬
shima and Nagasaki
1955.
protective
been
progress
in
good
re¬
shortly there¬
aid
a
is
of
to
be
Govern-
power
New
York, Inc. It is
cost $30 million to
to
1
made
in
done
Great
Britain
have
costs
point
a
The
program.
been
which
at
be
indicates
reduced
electricity
produced
plants at
in
to
can
nuclear
price competitive with
produced
in
conventional
that
a
plants fueled by coal.
Government
The British
therefore
of
mated
to
$840 million.
This
25%
at
Here, in the United States, our
appears
to
be moving
at a somewhat slower pace.
Many
predictions have been made conthe
point
which
at
plants will
power
nu-
be
com-
power
of
deliver
power
by 1957.
uled
to
plant expected to
the Pittsburgh
to
kilowatts
60,000
minimum of
of
electricity.
a
Third, the cost of construction and
operation in each of these major
developments is not competitive
with
conventional
this time.
cate
the
power
units at
Present estimates indi¬
construction
cost
of
the
Shippingport plant will be in the
magnitude
the cost of
of
a
four
to
five
times
conventional plant.
The AEC has a major reactor
development program in progress
technological
^
veloping the
The
This plant is sched¬
produce
predictions
dent
in de-
progress
reactors
new
is the unanimity evi¬
nuclear
reactors will
that
eventually
be
competitive
conventional plants.
new
an
offer
buy
to
any
circumstances
to
be construed
offer to sell or as a solicitation of
of these securities. The offering is made only by the Prospectus.
as
an
interesting, but are only
predictions until we have constructed
several
reactors
and
gained
operating experience. Ultimately, nuclear reactors, as in
Britain, will
structed
increased
our
undoubtedly be
to
provide
of
the
part of the
a
requirements
power
growing
con-
It
economy.
of
does
they will replace
existing
conventional
Ti
February 25, 1955
demand
for
affect
the
future
conventional
fuels.
the
consumed
by the electric
power
the
profit-
ab
are
fuel
in
oil
classification.
e
and
least
The
gas
eventual
°LSTG fVtur+v?r0WKth m
-iminrW
will
Company's outstanding Common Stock
at the
rate
of
1
new
February 24, 1955. Subscription Warrants will expire
March
10,
are
being offered the right
share for each 6 shares
at
3:30 P.M., Eastern
to subscribe at
held of record on
Standard Time,
on
1955.
effect
industries.
craft
seem
agreed, subject to certain conditions, to purchase any unsubscribed
shares and, both during and
following the subscription period, may offer shares of Common Stock
as set forth in the
Prospectus.
be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers or brokers as may lawfully offer these securities in such State.
Merrill
Lynch, Pierce, Fenner & Beane
not
Corporation
Lehman Brothers
Hornblower & Weeks
Paine, Webber, Jackson 8C Curtis
Harriman Ripley 8C Co.
Lazard Freres 8C Co.
-
which would have been
tatoes
has
of
use
tion
of
food
and
ess
and
though these radioreally
the
cine
and
are
to
other
1,000
used
in
Stone 8C Webster Securities Corporation
(2) to change
(1)
industry,
users
as
now
principal
appli-
or
tags and
modify tissue.
Industrial applications are
broad.
are
As
used
tracers
to
ex-
They
tracers
or
is
of
medi-
month.
per
two
cations:
by-products
Shipments
program.
radioisotopes
spoilage
the
results
through
radioisotopes have
of
use
been
taste and color.
medical
quite
dramatic.
these
have
In
some
overshadowed
important aspects -ineluding the availability of a new
research tool perhaps as significant as the development of the
microscope.
Medical research
more
staffs throughout the country are
making increased use of radioisotopes
in
special studies.
In
addition, radioisotopes have been
successfully used in certain
to
treat
diseased
tissue.
cases
Exten-
sive
experimentation is continuin these areas. The medical
profession
now
has
improved
ing
of
sources
with
radiation
available
precise control of the
degree of radiation and depth of
more
peneration.
It
is
will
expected
continue
that
in
this
area,
New Opportunities Created
for
Business
The foregoing brief description
of
of
some
the
major
develop-
ments in the atomic age indicates
great
opportunities
which
been created for business.
now
moving
in
the
have
We
are
direction
of
more rapid peacetime application
0f atomic energy. Nuclear power
plants
are being built, and during the coming years are expected
to account for
0f
new
appears
increasing share
plant construction,
an
power
difficult to
very
plants
COst
will
or
measure
be
basis
plants.
pre-
the nuclear
competitive on a
with
However
conventional
the
impact of
plants is not expected
to
affect the existing plants of
electric
utility companies.
The
the nuclear
upon
conventional fuels,
gas an(j coai wouid be evolu-
oil
"
g
wiU
tags
quite
they
thickness,
,
d
Th-
,
i" the lower rate class-
ifications
of
oil
should not be too
and
and
gas
important from
"Scopes
Til
are
variety of radioisotopes available
at relatively low cost
justify ail
the expenditures made on atomic
of
by the
steriliza-
prevent
maintain
Some
use.'No-
automobiles
feelUtShnaf ther^re°iSOtOPeh
that the great number
are
to
Cold
has been achieved, but more work
is required to perfect the proe-
of
1661
even
inhibited
been
radiation.
re-
,
Nuclear, powered air¬
a
longer-term prob-
Incorporated
Smith, Barney &, Co.
,
be
major area of atomic
developments significant
ceeding
Blyth &, Co., Inc.
compared
years
has
i,
^n usedln^ brLdLingLpplU
The third
energy,
Kidder, Peabody 8C Co.
in the
resistant
oats
developed in one year
to approximately ten
developed
rust
*!?at
likely in the foreseeable fu-
isotopes
The First Boston
been
a effect
?hd coal and oil
the Sh°,Uld HhaV-1
on
powered
energy
The Prospectus may
M
ability for the military
clear
The several Underwriters have
h
™
probably
#1 Per Share)
little
$40 per share for the above shares
has
tionary a$d cause no serious dislocations. Nevertheless, nuclear
rrvv" fuel will probably preempt some
ps* evolu- of the future. growth in the use
s
an
o
Jui
nicn
also
Holders of the
if6!? in1iiifiCf>nCern*
nr-iLr ^LnM-!0
tnaiiv
!
Common Stock
(Par Value
have
modifying
accelerating plant muHigher yielding hybrid
tations.
corn
their business
Jv+ti
k
Maryland Casualty Company
in
ffnU+ fur P°,wer diet precisely when
obviously
industry
296,050 Shares
in
tions
It
Kln?PaCi
will
However,
NEW ISSUE
by
tisProgress has been quite significant in agricultural applica-
Predic-
are
.
no
results
food
sue.
t
tions
any
is under
interesting
achieved
with
plants.
announcement
of
progress
impressive fact in all these
not appear that
This
absorption
Many
been
cases
nuclear
a
been
the
of
plants.
the
eluding the cost of present fuel
(oil, gas and coal) and the rate
powered by
Nautilus
studies of nutritional
of animals and studies
processes,
problems
new
the new capacity
during this period,
of
be installed
clear
submarine
tify different liquids such as oil
products moving through a pipeline.
Biological uses as- tracers
include
the
study of biological
esti-
an
port, Pa., in September, 1954, for
the
construction
of
a
major
are
atomic
the
li-
of
quids, to trace leaks and to iden-
an-
year program
nuclear power plants
12
cost
has
ten
a
capacity will account for
to
work
nuclear reactor has
successfully tested. Second,
ground was broken at Shipping-
facts
mate-
flow
quired through natural breeding,
In addition the sprouting of po-
reactor
cerning
plants.
test
the
its
statements
Certain
public knowledge. First,
power
to
wear,
control
to
have been
petitive with conventional plants,
It
appears
to
me
unimportant
that no one really seems to knew
exactly
when
the
competitive
point will be reached. This will
depend upon many factors in-
nuclear
measure
rials,
Britain, under the compulsion of relatively high fuel
costs, has made rapid progress in
concerning
conflicting
to
Thursday, March 3, 1955
.
.
laboratory,
Great
program
been
ac¬
early
construction
"pile"
Field
fabulous
Philadel¬
17,
Many
area
Stagg
by Mr. Ballam before the
Women's
with
District
discoveries
Alamogordo,
phia, Philadelphia, Pa.,
and
Many other monumental achieve¬
Mendelyeev developed the
Investment
began
tions of the scientists into
discov¬
the term atom.
use
area
ap¬
the first mod¬
was
nuclear
a
government
advent of World War II instituted
nuclear
scientific
indi¬
and
atom
possibility of
The
weapon.
tual
effect of many important
eries
the
cated the
plications of nuclear energy in the
The
take
Nuclear Power Plants
to President
con¬
science represents the cumulative
obviously
have
of
future.
has
not
Our weapon
cent years.
period
the
in
some
Roosevelt in 1939 about the fission
accom¬
some
principals
Dr. Einstein wrote
in
In ad¬
recent
Chadwick,
threatened the
persons in the
all
prior to 1939.
De¬
atomic energy
plishments and discuss
the
of
shall review the devel¬
our
did
measures."
trolled "chain reaction" under the
late Mr. Fermi's direction.
have seriously
is
ice.
a
area
Urey and Fermi, to mention
Bikini
ac
produced suf¬
which
$40 million and produce approximately 125,000 kilowatts.
In all
probability it will be at least four
years before the plant is in serv-
build
of nearly
ford, Bohr, Lawrence,
expected
approximately 2,800 square miles
"to
Ruther¬
tested
of
nounced
lives
recognize the contribu¬
as
funds
ficient radioactivity in an area of
of the structure of the atom.
scientific
operation
device
a
or
Mar. 1,1954,
on
must
Our
resulted
the
AEC
We
age,
attack.
that
in
work
of the the¬
tions of scientists such
atomic
were
thermo¬
hydrogen
recently stated
of
weapon
The only large
far
without the
Co.
son
nuclear
The
development
plant
planned by The Consolidated Edi-
the
ory
today is to trace briefly
purpose
some
the
atomic
an
predic¬
program,
in
the development
was
built
ment
now
development
further
thus
reactor
ful
bomb.
the
contemplated.
are
that
to
purpose
Atol
later
in
pate
of this program. Several reactors
have been announced and others
Dr.
1898.
different
to
Important
It is not
involving five major types which
most promising. It is expected that private industry aided
by the Government will partici-
appear
discuss weapons,
other than to mention the success¬
my
dis¬
developed
merely
■
could have been accom¬
more
plants and radioisotopes.
Marie
and energy
mass
equivalent,
"'v
plished) and are in three princi¬
pal areas: weapons, nuclear power
x-rays.
their
in
1905
theory that
v/e
our
that
discov¬
by
after
radium
of
items
news
work
even
the postwar
period have been extraordinarily
rapid (althougn some critics feel
elements.
were
called
were
Pierre Curie
covery
Almost every day our newspapers
the
of
radiations
assure
in
Developments
by Roentgen in Germany in
1895
discovery and by the
use
table
The first
been
The change in the law
during 1954 should
greater progress.
Concludes the ultimate bene¬
limited only by man's imagination
and ingenuity.
has
it
the AEC.
under
strides
tremendous
made
are
atomic
of
significant
so
atomic
of
industries, the
atomic energy industry, created
and
owned
by the government,
faced the job of postwar recon¬
version.
The Manhattan District,
in
effect, was replaced by the
Atomic Energy Commission
es¬
tablished by the Atomic Energy
Act of 1946. During the past nine
years
our
atomic program has
By SAMUEL H. BALLAM, JR.*
for business.
potential
Like other major
Assistant Trust Investment Officer,
ated opportunities
dreadful
energy.
.
pHnciLal
^"Sear'h'^Thef;
uses
arl
as
ta^ o^
tracers anti to modi£y tissue
cfront*
-
-
-
®
growth
Fur-
antirMnafAr?
anticipated.
eventual^Skance T atomic
eventual significance ot
atomic
enerffy to business.
Atomic
en-
er&y Is a tremendous new force,
^
create more value than
*t destroys unless used for total
destruction.
The
ultimate bene-
^its of atomic energy are limited
on*y by man's imagination and
ingenuity- Business must assume
share of responsibility in
achieving the maximum benefits
from this dynamic new achievement of the scientists.
Volume 181
Number 5408
.
.
The Commercial and Financial Chronicle
.
1023
tion,
If War Comes—What
By ROBERT E. WILSON*
Oil
the
military demands.
technical
a
a
know
about
'lems
•
of
prob-
manpower
the
operations
d
neers
'to
from
on
that
ference
they
Robert E- Wi,son
con-
will
result
to
program
in
which
concrete
a
we
all
can
future Congress will
near
in
Military
Training
in the
men
those
most
velop
a
and
regulations
new
I
think
sound
how
and
Equally
decide
it
importance
concerned
gram.
will
reserves
considered.
paramount
be
try
to
definite
a
de¬
pro¬
important
such
little
Pave
certain
is
that
is
program
to
can
implemented. I suspect that
on
mass
now
different, but
equally impor¬
engineers
and
least
the
be
we
a
of
petroleum
in
bad
shape.
industry
And I
that
if
the
were
to
fail
job, the country would
Even
mess.
at
our
country's
veloped from oil
than from
all
present
more
is
energy
and
other
be
de¬
natural
sources
gas
com¬
bined. During World War II there
were
the
guns,
If
of
shipped
combined
items,
agreeing
principles. For
tons
more
products
trouble
broad
its
production
of engineers and
point
out
petroleum industry
Universal
Service Act. Some
be
us
be
may
scientists
on
covering
of
Industry
should
In the
shall
a
use
Without
would
consider legislation
concerning the
of
of
at
are
tant.
agree.
also
those
scientists
hope
this
Petroleum
industry. The
the needs of
I
all
The
speak with
each.
think
petroleum industry is a
good example of a process indus¬
try whose problems are different
be able
•authority
mass
are
The
You
:should
I
a
so
necessary to keep
these operations in business.
busi-
ness.
in
men
petroleum
than
overseas
total
of
all
other
including
bombs,
tanks,
ammunition, and food.
another
war
the
comes
im¬
mediate
fuel
requirements
for
certainly agree aviation
purposes will probably be
that there is a real shortage of
greater than they were after four
scientists and
engineers in this years of frantic effort
in World
country, and especially of those War II.
While
the
number
of
well trained in the latest develop¬
planes employed will probably be
ments. Most people agree that our
fewer than at the end of the
example,
we
selective
service
make
can
individual do the job in which he
can
best serve his country. The
trouble
spell
when
comes
the
out
try
we
mechanism
for
to
ac¬
complishing this. The important
$64 question is who decides how
and
where
should
ence
can
given
individual
hope this confer¬
a
I
serve.
come
!
While
I
with
up
recommendations
tion by the
for
some
considera¬
84th Congress.
listed
am
of trouble.
abilities
tion
of
workers.
impossible
Scientists
as
they will be larger, much
faster,
and
powered
with
jet
board
Long
job
would
or
and
engineers
the military services.
I
an
the
good for the
opened
se¬
technology which
weapon
to
there
are
a
oil
in
engineers
many
industry as
industry,
get
back
time, but I'm
how
had
ments
technical
develop¬
nical
be¬
material
pending
other
sible
costs,
the
the
upon
products
final
ture of
other
variation
volumes
been
cost,
of
the
material available and
factors.
a
decision
to go ahead.
rels per day
tion
of
Ten
total
a
of this
burns
high-grade fuel
This
750
normal
faster
pushed this
than
standards.
ahead
worked.
You
and
would
can't
But
the
do
they
plants
this
out
technically trained
perienced people.
with¬
and
ex¬
The Atomic Bomb
B-36
a
gallons
every hour
announcement
an
bar¬
by
went
requirements.
about
time but
some
war
small frac¬
Consider, for example, that
bomber
for
on
their necks out to build the syn¬
thetic rubber plants. They
really
didn't have enough data, at least
reached
thousand
is only
the
was
synthetic
otherwise have happened. Engin¬
eers
and scientists had to
stick
$200 million and would take about
two years to build,
beginning with
time
going
development
na¬
Thus, a plant to
produce
10,000 barrels per day
would cost from $100 million to
the
produce
the exigencies of
required, permis¬
product
raw
de¬
to
Research in this field had
offer
to
is under
buy
any
no
The
outstanding
complishment
of
technical
all
time
ac¬
take
to
be construed
as
an
bomb
that
could
have
help.
Cer¬
would
who
up
engines
be
can
which
burn
fuel
at
NEW
business.
decided
that
staff
so
of
they
course
point
we
But
had
scientists
gave
a
over
the
able
to
the
be
world
and
material
last
case
of
in
an
is
that
had
men
services
somebody
-
it,
had
we
been
the
job
in
the
could
amples.
needs
by
air
two
than
The
&
was
Continued
to
sell
or as a
on
solicitation of
Light Company
(Without Par Value)
re¬
military de¬
enormous
chairman, I havodseen engaged in
for aviation fuels. In con¬
closely associated with, science nection
with
military require¬
engineering for most of my ments it is interesting to note that
mand
or
and
Price
life. I have served in two govern¬
it takes about 12,500
gallons of
university, and two in¬ aviation gasoline to train just one
dustry laboratories. By the end of pilot!
World War I, I was a Major of
Civilian Use of Airplanes
the Chemical Warfare Service in
ments,
of
about
50
In
had
unusual opportunities to
some
recent
work with the
Civilian
research
workers.
years
have
I
military services
advisor and consultant. I
as
men¬
time
be
of
of
use
airplanes
would
war
curtailed
tion these items of personal back¬
were
but
The Prospectus may be obtained in
any State in which this
in
ment
undoubtedly
the
essential
thinking with regard to the
problems this conference is con¬
my
dealers
'
was
asked to talk to this
about
ference
dustry."
the
must
It
"Needs
con¬
In¬
clear
be
of
to
789.2 million
jet planes may be
war
further
try must function effectively if a
national emergency should arise.
The military forces would
soon
grind to a halt unless they were
supplied with their multitudinous
requirements, many of which are
quite
different from
those
re¬
quired
by the civilian market.
Over
new
*An
the
address by Mr.
Military-Industrial
on
tion
of
cago,
"The
Our
Illinois,
requirements,
Feb.
10,
given
Conference,
Development
Technical
thereby
requirements
and
gasoline
from
original
is
dif¬
very
ordinary motor fuel.
70%
synthetic,
Chi¬
may
as
announce'
or
lawfully offer these securities in such
other
State.
Merrill
of
the
not
crude
Lynch, Pierce, Fenner & Beane
R. S. Dickson &
'
Company
Incorporated
Blyth & Co., Inc.
The First Boston
Corporation
Goldman, Sachs & Co.
molecules
in
present
oil.
It
is
the
tailor-
a
Kidder, Peabody 8C Co.
Smith, Barney & Co.
White, Weld 8C Co.
are
A. C.
Allyn and Company
Bear, Stearns 8C Co.
Incorporated
Carolina Securities Corporation
made product
produced in highly
specialized equipment. It is prac¬
tically
certain
that
our
enemy
would place oil refineries
their target
priority
high on
list. During
World War II the activities of the
Luftwaffe were
tailed by lack of fuel and
rest
assured
not
lost
Utiliza¬
Manoower,"
195S.
at
ses¬
brokers
only such of the undersigned
levels.
frequently
Wilson
from
factor by the
comes, if it does,
Aviation
ferent
a
increasing
above present
everybody here today that indus¬
Meeting these
or
circulated
gallons; this is
requirements in 1940.
Here again the use of commercial
time
sidering.
is
de¬
11 times the
sion
Share
mand would be large. For exam¬
ple, in 1952 civilian requirements
ground because it naturally affects
I
per
one
charge
an
$24.50
on
that
the
this
cur¬
we
lesson
Russians.
can
was
It
is
impractical to store enough avia¬
Central
Republic Company
Clark, Dodge & Co.
Drexel & Co.
(Incorporated)
Hornblower & Weeks
W. C.
Langley & Co.
Paine, Webber, Jackson & Curtis
25
military
not
have
The aircraft industry
large numbers of en-
Common Stock
combina¬
factors will
Of
the
very
February 25, 1955
Carolina Power
do.
but
about
I've talked about synthetic rub¬
ber, atomic energy and the petro¬
leum industry. These are
only ex-
505,000 Shares
of
engineers
been done.
ISSUE
will
•
atom
technically trained people accus¬
tomed to working together that
we could
put on the job. If these
a
reason¬
more
personnel
time.
these
sult
far
and
transported
the
it
that
assume
it
called
competent
job to
accepted
we
is
us
a
and
much
the second
place, the war will
probably be fought from bases all
-
program.
Nothing could
been
farther from our
of these securities. The offering is made only by the Prospectus.
higher rate than the piston
engines used in World War II. In
make
such tech¬
part in the
normal
was
offer
might have
he
technical
small
a
probably the development of the
circumstances
•
in times of emergency.
have,
rubber.
cost
if
my
own
company,
during
World War II, we were
suddenly,
without any warning, called
upon
developed
would
new
more
In
daily
$10,000 and $20,000
per
barrel of aviation gasoline
produced
at
present
labor
and
he
sooner
staffs
upon
tween
grade
even
he still wonders
sure
done
action
to
high
and
us
impossible to build
accomplished. When
the supply of natural rubber was
cut off a whole new
industry was
of
were
it
more
any
emergency
arrives.
During
World War II, and
before, some
they
organizations as du Pont and Car-'
bide for thousands of
technically
trained people. We must not take
Consider, also, the things which
industry is called on to do when
phenomenal
Also
whole
a
will be of great
tainly the job would have been
impossible without calling on such
in
an
much
gotten
L
Cost does not
history.
our children.
I'm sure General
Groves would tell you
that, while
he
had
many,
he
never
had
enough scientists and engineers
for this project. He
got a remarkable job done in
remarkably short
others.
to
they
Scientists
to
the
process
many
in
•
the way for
benefit to all of
country.
used the
example of
do
can
product
So they went ahead
and
developed the most fearsome
ciency without adequate techni¬
cal help and in case of disaster
they also would have to have
.
production
aviation gasoline
the
the product was there.
En¬
gineers said they could build the
other examples. These industries
dannot operate at maximum effi¬
adequately but it
might be interesting to note that
a new
refinery designed to maxi¬
mum
seen
going to produce.
said
business.
story
ever
were
and production of most metals
are
I wish I could
convey to you an
adequate picture of the complex¬
tell
nobody
had
Syn¬
thetic rubber,
chemicals, plastics,
;
ity of these plants.
Hanford, Los Alamos,
which cost more
billion dollars. All of
this
done at a time when
plant.
established
they
a
built at
a
ar¬
emergency
be
where
have
but
our
were
must
stay
most
be
if
an
orderly procedure of
think, for
were
elsewhere
was
insure that people with
specialized
training will be encouraged to go
location
achievement
and
than
important thing,
before
an
lection
ordinary produc¬
The
of
Just
war,
tion
a
the
at
The
rives
It will be
necessary to
last
system
should
effort to have each
every
available
one
done at all,
especially if some of
our
refineries are knocked out.
imme¬
the
need for
morn¬
a better
appreciation of how
these things work and
why engi¬
and
in
be
production
experi-
*ence
will
Oak Ridge,
job
complexity
of
these
the
availability
of
parts
spare
about
or
bomb.
moment, that plants
how¬
ever, is not the money but the
requirements for scientists and
engineers in order to get the
trained and experienced
engineers
will be a must if disaster strikes.
We cannot expect that all kinds
of
gallons
atomic
re¬
barrels
rate.
the
technically
this
us
have
many have
a
of
uncommon
for a single
flight of
plane. Ten thousand bar¬
rels per day at a cost of
perhaps
$150 million doesn't go far at this
exert great
ingenuity and resort
to makeshift operations. The
prob¬
lems would be
completely beyond
Fletcher told
industry.
in
;the military
:
services
en¬
Because
18,000
450
as¬
diately
trained
had
experience
requires
experienced
ing about the
Society
•have
only
gineers and scientists, not only in
production but in research, de¬
Mr.
members
'of the
and
The
Flights of 24 hours
not
are
just
military has for
velopment, and design work.
the
country. All of
-the
quickly
the
moment.
extreme
'
it
sabotage.
that
possible
particularly when these industries require
greater expansion when an emergency arises.
Deplores short¬
age of scientists both in and out of government service.
doing
and
more
quiring
knocked out either by
bombing or
as would seem
probable,
it will be imperative to
get them
back into operation at the earliest
Points-out certain indus^
trained
or
any appreciable
Even if
enough
sabotage,
efficiency without adequate
and
it is in the air.
Jthat
continuing supply of petroleum
products is continuing production.
If our larger oil refineries are
help,
The Society of American Mili¬
tary Engineers is an organization
comprised of people who should
time.
for
a
equip¬
versus
of
surance
(Indiana)
leading petroleum producer, having in mind
Universal Military Training and Service Act and
eventually
war, discusses the needs of industry for personnel and
ment
period
other
any
storage tanks could be built they
would be prime
targets for bomb¬
ing
Company
Executi/e of
tries cannot operate at maximum
or
products
matter, to last for
Industries Will Be Affected?
Chairman of the Board, Standard
gasoline,
petroleum
11
Laurence M. Marks 8C Co.
G. H. Walker 8C Co.
page
43
•
•
years—important things which are
worth mentioning because they do
Administration's Problems
that con¬
attention
the
draw
not
troversy and violence do.
And Its
Accomplishments
helping to accomplish during the past two years. Says
progress has been made in reducing waste and extravagance
accomplish¬
speak of are the problems
of every citizen, and the accom¬
plishments are the work of all
problems
and
by their
efforts,
who,
own
have
I
of
names
to
honest
be
going
lines,
crises, but of
quiet, un-
Americans
homes,
savings of
controls
businessman.
headlines
no
to
longer
there
And
the
herald
you
govern¬
individual
the
restrict
There
remind
to
wartime
stringent
ment
or
funds.
pension
headlines
no
hamper
or the
are
no
stirring
in their
government, in each other,
and
our
to
of
in
do
ability
whatever
and
may
strength
be required
in any emergency.
us
I
am
even
more
that have made our country great
"■Remarks
receipt
of
by Sec'y Humphrey follow¬
of the 1954 William Penn
the
Chamber
Greater
Philadelphia,
Feb.
of
Commerce
of
1955.
16,
free
to
Philadelphia,
than
keep
has made the tran¬
nation
Our
sition
from
wartime high
a
lower level of
to
a
government spend¬
ing without a major economic up¬
set.
This transition was helped
and other
heavy tax
stimulating
by
moves
cuts
con¬
While there is still
this
places, there is no armed
warfare between major powers at
point
in encour¬
Pa.,
his
in
daily
life.
It is
tally important to the defense of
all Americans against any possible
attack, for the power and
enemy
strength
American industrial
very foundation of
of
capacity is the
it is—as far
as
the daily news outlets
radio, and TV. Yet the
quiet, undramatic, progressive de¬
velopments that are going on in
in
America—without
news
making sensa¬
are important for
and future of our
—
present
people.
have
a
no
news.
quarrel
with
what
I make these obser¬
little
now
about
some
relation¬
places throughout
the world have been achieved by
for
solutions
of
serious
dedicated
and
the
widespread
problems. It is
a
pursuit
vexing and
international
treacherous path.
Bold risks must sometimes be tak¬
but
en,
success
to
is
date
high
proof of the competence and wis¬
dom
the
of
been
this
policies which have
in wrestling with
problem of preserving the
adopted
and making it
peace
more secure.
Inflation
has
the
past
the
dollar has
two
fifth
of
one
with
a
drop
dollar
from
been
years
the
This
value
in
100
done
things that have
during the past two
government
control.
cents
in
New Issue
have
been
-
•
Deficits—which
borrowing and
so
lead
to
Federal
Reserve
is
There
the
about
$60,000,000
in
the
locked
earnings
realize
that
55
in
families
than
more
savings
America
$4,000
com¬
banks,
We had
and
the
from
public
paid out by the gov¬
last year.
Although we
money
ernment
will not have
a
year,
estimating
we
are
cash balance this
surplus in the
fiscal
total
has
The
debt
because
grow
in
and
money
national
our
of
inherited
we
small
a
unity adds strength
defense position.
We
and
can
rity;
is
that
But
large
the
in
to
defi¬
first year
our
office and the subsequent difi-
spending huge amounts of
worth
of
be
measured
by its costs but
unbelievable
most
science
in
niques,
and
infla¬
developments
production
we cannot
committed
defense
have
to
almost
wholly
eliminated
the increase
that most of
in
being financed by securi¬
to
government trust
funds rather than borrowing from
the public.
issued
tech¬
a static
old-fash¬
ioned strategy and weapons. Real
security
for
extended
upon
Nation
our
period
must
over
also
an
rest
sound and growing econ¬
a
omy.
As
in
cuts
all through
erations
future
expenditures
the government's op¬
clearly into sight,
come
if
and
the
at
time
same
our
expanding economy promises
greater income with lesser rates
of
tax,
will
we
further
look forward
reductions
in
to
tax
our
structure, distributed as fairly
The
all taxpayers.
among
reduction
of
as
expectation of further tax
maintenance
the
and
fiscal
sound
policies are firm
foundation stones creating greater
confidence
in
future
our
pros¬
perity.
These,
then, have been fine,
accomplishments for
worthwhile
the
good of the Nation, its econ¬
and its future. They have
accomplished without fan¬
omy,
been
sensational
or
heads
in
there
this
exists
controversy.
in the Agency
Administration,
wonderful
a
spirit which
with
team
in real
has resulted
head¬
few
battles.
The
of Government in
Role
to
to
are
In the Cabinet and
effect of deficit financing has
on
recognition
of the fact that in this age of al¬
line
the
decisions
President's
defense forces
our
much smaller.
inflation-
must
its wisdom.
The
not
cits, even though they have been
the
money.
defense
our
fare
But
security
from
result simply
not
The
secu¬
concern.
real
that
to
spend
our
first
our
know
we
does
must
we
needed for
whatever is
ahead.
year
continued
resources.
Greater
cash balance between
a
collected
money
cit
tures
possible
millions of Americans.
of
Economic Affairs
Balanced
Goal
Budget
The role which the government
In fiscal
1956, spending will be
$12 billion less than in
almost
We
1953.
the
so
have
budget.
in
not
a
stimulating
and
economy
we
big tax cut was
to a growing
believed that it
better for the
was
balanced
yet
We could have done
1954, but
more
of
them
their
We
people to have
to
have
money
left
spend,
as
they
thought best, rather than to have
the government spending it for
them.
from
fiscal
1953
We
half
to
less
be
1956.
own
what
from
away
set
our
deficit
world
the
of
that
fur¬
even
does
else¬
not
up¬
is
world
which
in
the
For¬
elsewhere
or
this
to
up
our
in
mo¬
budget pro¬
for reduced expenditures in
to
year
expenditures
reduced
mean
the
As
United States is in
sition
to
individual
not
a
mobile
America
resource¬
of
each
can
free
he
choose
interest
loved
can
to
promote his
in
ones
best
does
rights
of
best
only
It
of
is
his
way
long
so
interfere
others.
he
interest and
future
whatever
devise
not
how
own
and
with
the
he
as
the
cum¬
ulative power of this great effort
at
an
stronger
po¬
excess
of
anything
better
and
free
initiative, the
fulness, the tenacity, daring, and
courage of 160 million Americans,
against
known
balanced,
flexible
and
drive
us
ahead in the
accelerated
we
pace
have
in
ever
before.
You and I
as
citizens must par¬
ticipate in this great drive toward
a
developed
future
lies in the
vinced will
The Defense Department has
more
interfere."
future
itself
defend
to
The
aggression than it was two years
ago.
capacities. In all that
can
individually do
themselves, government ought
peopler
the
has
a
do¬
to
said,
do
defenses.
President
limited
be
ing, as Lincoln said, "for a com¬
munity of people whatever they
need to have done, but cannot do
at all, or cannot so well do for
themselves—in their separate and
not
reduced
make
we
by government in
the
freedom
of its
which has made America great in
the past and
which I am con¬
And
come.
affairs
limited.
be
a
citizens should
the
nothing
should
manipulation is the
free America, and
of
restricting
a
plans.
situation
mosa
the
the
and
development
some
in
where
end
in
the economic
encroachment
for
year
the
antithesis
the
billion
in
the .Nation
Government
in
have every hope
we
cutting this
if
a
play
can
of
estimate
we
$2%
still
deficit
billion
$9
than
are
the
cut
than
more
gram
Copies oj the prospectus may he obtained Jrom the undersigned (one oj the under¬
writers named therein) only by persons to whom the undersigned may legally
ojjer these securities under applicable securities laws.
earn
as
savings bonds,
insurance policies, and pensions,
of which I spoke just a moment
ago.
Because
this
nation
has
quietly
become
a
nation
of
"haves" rather than "have nots,"
inflation
must
stay checked to
protect
the earnings and savings
savings
ment has altered
plus accrued interest from March 1, 1955
now
year
a
100
every
And recall the millions of
of their homes, accounts
There
Price 100%
of
out
be
Just
with only 10 out of 100
earning $4,000 a year early in
the century in terms of today's
ther
3% Convertible Debentures, due 1975 (Subordinate)
value
can
pared
of
Company of California
The
out.
and
in no other way.
protected
in
duplicate efforts and expendi¬
that
squander
both
tax
to
academic
nothing
period, and
unification
real
accomplishment
System
March 2, 1955
in
importance of keeping
inflation
will
Union Oil
balanced
making prog¬
services, so that competi¬
between them is less likely
ties
tion—have been cut substantially.
-
in
ress
better
are
debt is
working
ojjerojsecuritiesjor sale or a solicitation oj an ojjerto buy securities.
'
We
program.
by the
1911.
with
an
that
but
accomplished.
been
of
one-
1939
econ¬
Canal
Panama
more
This announcement is not
done,
far
a
now
for, and insisting upon get¬
ting, our Federal spending under
The
have
by
the
for
pay
only 52 cents in January 1953. All
departments and many people in
more
already
We
In
compares
the value of
tue
successful place¬
ment
only a few days ago of
nearly $2 billion in 40-year 3%
bonds. They are the longest bonds
that have been sold by the gov¬
ernment since
an
issue to help
been
changed only
cent.
the
upon
of
illustrated
well
is
This
any
stopped.
effect
course
possible
as
issue and highly
many
ceaseless
of
the constructive
been
in
Indo¬
hard
vations only as a reason for talk¬
ing
in
Inflation Checked
press,
I
War
War
has ceased.
ships in
"good news"
is "no news'" to attract public at¬
the
American fight¬
as
halted.
has
of this
as
is peace—uneasy
concerned.
are
men
security.
It is often true that
of
the globe
on
There
moment.
The present improved
important to the standard of liv¬
ing of every American worker
and his loved ones. And it is vi¬
our
high tension
in many
ing
be
to
has
our
prices.
fidence.
any
its
so
omy.
of
perform.
china
makes
Award
set a
stage upon
vigorous Americans
properly
nation
tional
encouraged to
talk about these simple principles
ing
goal of
vigorous. We must
made
have
tention
Americans
return of confidence of
j
to
Korea
American
poli¬
cies; almost $50 billion in U. S.
Savings Bonds, and $25 billion in
are
this
But it has been important to every
you
have
more
What has been done
$80 billion in life insurance
that
in
aging initiative and enterprise has
not been sensational or dramatic.
desire.
tell
must do
we
which
There are no
that about
the 47 millions of families
retirement
relatively little except to help
borrowing
its
careful
as
constructive
government can
great.
in America own their own
that
which knows that
them growing and always
developing the new things and
the better ways of doing things
choosing—jobs that they are free
leave or change if and when¬
55% of
Administration
substantially
them alive and
to
to
anywhere
ours.
keep
working at jobs of their own
so
of
has been a dedicated
But
dramatic, pro¬
George M. Humphrey
gressive de¬
velopments that are going on all
around us in America. There have
been no headlines to tell you that
more
than 60 million Americans
they
life—
keep
alive
and
vigorous
the
priceless principles of free, com¬
petitive enterprise and initiative.
the
ever
an
do
be
to
as
owners
contro¬
and
headlines
of
way
the Eisenhower Administration
versy,
are
basic
of life which has yet to
surpassed
It
head¬
of
are
our
of
assistance
initiative
and
believe
American
way
world
to talk to you
now
we
our
the
endeavor.
not
omy,
which
enterprise
the
to
nation's econ¬
with the careful and quiet
can
which
am
who
those
men who stand for the
principles of free competi¬
opportunity
by hard work
most
the
is
strength of
the
honoring
tive
I
list of
have been
the
over
previous recipients of the William
Penn
Award, showing that the
Philadelphia Chamber of Com¬
merce
over
the years has been
soundness and
and
read
same
helped
build
to
increasing con¬
important
development of
This
future.
fidence
possibilities of
the
in
.
when
doing
tion—by
concerning
stimulant
The
ments I
two
past
the
during
Americans
our
left
tion
healthy progress which has been
going on in this country has in¬
creased
the
confidence
of
all
unspectacular things" the Administration has
the
And
......
not alter the fact that much
does
ing inflation—and avoiding defla¬
undramatic but steady and
The
been
inflation.
Thursday, March 3, 11955
.'
h
.
armed
years?
ciples of free competitive enterprise and initiative, lists what
and
.
much
Treasury has done its bit in halt¬
complish
Secretary Humphrey, in stating the goal of the Eisenhower
keep alive and vigorous the priceless prin¬
fine
-
things that this Adminis¬
has been helping to ac¬
tration
Administration is to
between
line
the
.
v
of these unspec¬
are some
tacular
in government.
wisely to adopt monetary and
credit
policies which have met
the needs of the economy while
and
deflation
Things
Some Unspectacular
What
Secretary of the Treasury
he calls "some
promptly, courageously,
has acted
f
,
walking
By GEORGE M. HUMPHREY*
-
Financial Chronicle
The Commercial and
1024
12
better America.
zen,
I
accept
am
As such
pleased
this
fine
and
award
a
citi¬
proud
from
to
the
effective defense establishment at
Dillon, Read & Co. Inc.
Chamber of Commerce of Greater
the
Philadelphia, and to receive it in
lower
cost
Progress
to
has
taxpayers.
been
made
in
reducing waste and extravagance.
Obsolete
are
equipment and
being
eliminated.
supplies
There
is
recognition
which
the
contributions
President
Eisenhower's
of
Administration
advancement
this
Nation.
of
has
the
made
to
economy
the
of
Volume 181
Number 5408
.
.
The Commercial and Financial Chronicle
.
13
1025
\
handicap
our allies in developing
the very economic strength we are
urging
The Paper and Pulp Industry's
Stake in Freer World Trade
open
risk the greatest industrial nation
them.
on
have
i
seen
tions undercut
our
times
many
I
President, Crown Zellerbach Corporation
task
production
that
former protectionist,
tribute
there is
says
growing
a
could
ment
that
awareness
serves the indus¬
the nation's best interests. Holds threat of'
interest to
do the
utmost
American economy within
We have
come
long
a
to
since
way
per
and
ing
more
that
Pulp
Association
meet¬
Since
our
has
t
p u
and
much less operate
—
cannot
Communist
imperialism
allies.
And we
strong
long
is
is
haul
allies over the
the free world
unless
liberated
from
crippling
and
half the world
divisive
production
freer world trade would strength¬
board.
have
of
the
and
i
n
at
third
fastest
the
J.
than
before
ever
its
in
has
growth
taken place while American tariff
imported paper and pa¬
products have declined sub¬
per
We
on
stantially.
From
their
in
peak
the
early 1930's, these duties have
by two-thirds to their
present average of approximately
dropped
has
long
been
a
the
American
Association.
Paper and Pulp
The voice of
in¬
our
dustry has been raised against
virtually every tariff reduction.
Indeed, it has sometimes request¬
ed tariff increases.
This has been
the traditional public stand of our
industry,
though we have
and prospering
even
in
kept
growing
while the tariff duties declined.
have
interlocking
an
mutual
defense
than
more
We
40
trea¬
nations.
seeking to put muscle be¬
economic
up
the political and
of our allies.
strength
realize
that
allies
our
must
healthy economies to be able
to resist internal
Communist sub¬
version, and to build military de¬
fenses
external
against
nist aggression. Thus,
Commu¬
the economic
development of the free world has
become
vital task of
foreign
policy effort to check communism.
a
our
But such economic development
presently fettered by
of
riers,
jungle
a
restrictions—tariff
trade
that
ness
stead of
best
I
Commission
growing
a
world
freer
aware¬
trade,
protectionism,
in¬
serves our
interests.
want
further
of
Randall
the
to
encouraging
freer
world
Association.
I
tionist,
have
part today in
my
As
become
United
within
our
former protec¬
a
to
want
support
the
trade
why
explain
the
convinced
that
urgently
needs
States
I
to
liberalize its foreign trade policy.
I
strongly
am
dent
supporting
Eisenhower's
tions,
such
ments
Extension
the
Trade
Act
Agree¬
now
before
Congress, which
the
Randall
It sedms to
principal
the
in
the
as
Presi¬
recommenda¬
grew out of
Commission
report.
that there
me
reasons
American
industry
should
are
two
why those of us
paper and pulp
support—rather
who
vassal of the
are
of
United
squaring
urgent need for
trade policy with
our
Japan
up
States
and
Asia.
a
as
free
But
people
in
million
than
natural
industrial
an
and
Japan must im¬
materials
and
export
the resultant manufactured goods.
In
short, Japan—like
Great
sides, such trade restric¬
stifling the development
of the full economic potential of
the
free
The
world.
Communist
world, on the other hand, is driv¬
ing hard to mobilize all its re¬
and the tremendous Soviet
sources
industrial
growth sharply under¬
of
use
the
for
need
the free
making
world's
Bri¬
tain—must trade to live.
We
their
China
for
Japanese to limit
with
trade
strategic
Communist
trade with mainland
find
free
greater
world.
ducing
the
resist
we
in
re¬
trade
own
ket.
are
As
a
Janan
result,
hemmed
billion
capita
anese
in,
barriers
income
are
economic
This,
on
for
the
and
deficit
trade
of
compet¬
ternal
potential
military
$1
oer
a
Jap¬
my
and
the
is
a
Commercial
I think
in
man-power—
other
rampant
Stake
foreign policy stake
our
freer
world
trade
it
weaken
of
in Asia.
Surely, our
policy stake in Japan is
far more important than the rela¬
tively slight effect Of ihcreased
Japanese imports On American
to
Since
fight
think
for
we
world
choice
a
will
lead
forward to
political
of
division.:
clear-cut
a
liberalization,
The
most
and
world
from
crippling
restrictions.
be
powerful stimulant to
other
nations
their
trade
to
policies
such
and
try,
treat
by
from
As
cently
set
our
told
"could
allies
our
as
the
up
re¬
and economic existence.
of
here
us
stake
in
reconciliation of
wiin
see
our
how
we
as
our
trade
citizens
for
im¬
an
promoting
loreign policy.
than
a
policy
I do not
shirk
can
carefully
sidering the total national
con¬
would
they
consumer's
of
home
with the United
lead
because
political
set
with
foreign
have
course—and
the
all
and
of
our
allies.
Our
preventing
ican
producer.
is
for
really
this,
see
by
sources
denying
them
chance to produce and
defense
strengthened
for
produced
be
if
the
world's
largest
United States.
have
Our
the
much
market
-L-
the
foreign
import quotas
same
effect,
of
Company.
Stores Company
Due March 1,
1980
market
by prohibiting
the United
States government—
the free world's largest purchaser
—from buying non-military goods
from abroad unless they are sub¬
stantially cheaper than American
goods. And our cumbersome cus¬
more
offer to buy securities.
which describes
31/4% Sinking Fund Debentures
espe¬
cially in tne agricultural field.
The Buy American Act seals off
our
than oppose or remain indifferent
toms procedures
to—the
Price 100%
(and accrued interest from March 1, 1955)
ther deterrent to imports.
tions.
President's
First,
American
recommenda¬
believe
I
citizens
that
have
we
a
foreign policy stake in freer world
trade.
Second,
industrialists
I
we
believe
have
a
that
A substantial
as
as
commer¬
restrictions
On
the
one
a
fur¬
part of our trade
are
economically
they undercut
constitute
unjustified
and
wasteful.
our
Worse,
foreign policy.
hand,
we
urge
Upon request,
cial stake in freer world trade.
words
to
strength
of the Prospectus
may
be obtained within
any
State
distribute it within such State.
greater'1 economic
Our
a copy
from any Underwriter who may regularly
our
allies—with
Foreign Policy Stake in Freer
World
All of
us
Trade
here have
eign policy stake in
a
develop
vital for¬
freer world
address
Open
American
New
York
they
Communist
they
can
can
money—
stabilize their
against
governments
weapons
*An
the
so
and
internal
subversion,
and
so
contribute more men and
to the common defense
by Mr. Zellerbach before
Industry
Meeting
of
the
Paper and Pulp Association,
against external Communist ag¬
gression. On the other hand, we
City, Feb. 23, i955.
maintain
trade
i
restrictions which
I
1
Goldman, Sachs & Co.
March 1,
1955.
good
it
Our
lower
efficiently
goods—and
Continued
any
no
where
paid
we
$25,000,000
The May Department
as
considerably
more
re¬
fair
a
—
industries.
would
economy
to
sell in the
us
to protect key
necessary
national
prices
I
except
from
fully utilizing their economic
efficient
of
paying artificially high prices
our
oarriers
alhes
solicitation of
American
to subsidize the inefficient Amer¬
hin¬
are
tariff
our
nor a
the securities and the business of the
dering the economic deve-opment
are
offer to sell
go
stand¬
consumers—
as
the
power
because
an
the
dollar
our
more
a
producer,
industrialists
are
in
compete
market
inter-
The offering is made only by means of the Prospectus,
We must
alone
economic
and
the
States.
we
This announcement is neither
if
cost
makes
living.
reason
has
our¬
importing goods at cheaper
wise
tear itself apart
struggle for markets
naked
latter
the
paratively
inefficient
American
producer who could not other¬
the prediction of
eventually
a
than
Protective tariffs interfere with
Soviet leaders that the free world
will
for
rather
this natural economic adjustment.
When the tariff protects a com¬
gravely damage and
disrupt the free world." It would
by
produce
—
at
ard
which would
tend to confirm
just
trade
refrigerators
or
bananas
farther and thus raises
Congress,
this
chain reaction
a
is
to
us
American
re¬
Dulles
It
can.
for
produced
foreign
present
Secretary
we
sense
or
prices
the
a
than
to
over,
free
hand, our failure to assert
leadership would be in¬
terpreted
on
make
we
selves at exhorbitant costs. More¬
a
own
On
the
concentrate
our efficient production
things we need which
people make more
effi¬
coifee
toward
move
convertibility.
currency
other
liberalize
the
allies'
our
enable
efficiently—and to exchange
typewriters
eco¬
It would
of
the
common
President
proposed, would provide fresh
impetus
toward
liberating
the
nomic
promote
use
would
to
eco¬
resources
own
would
It
nations
most
part of
other
has
free
our
States
ciently
of
the
as
a
for
adoption
tariff
policy
free
the
producing those things
mar¬
nationalism
it
as
United
and
expanding production,
permit .it to. lapse into inten¬
economic
by
economy
the
most economical
free
widening
own
of
use
resources.
kets
or
our
than
It will
economy.
promote
—just
now
the
own
among
nomical
tariff
to the crossroads
make
we
the
not
increased and freer flow of
/•
would
help keep Japan.
come
must
we
An
trade
should
some
disad¬
improving our overall efficiency
and by raising our standard of
living.
I
Formosa,
to
We have
our
prepared
are
could afford
reductions
—
we
if
even
However, this is
strengthen
communism
policy
full
rests
im¬
so
economic
our
resources.
potential
is
The fact is that freer world
case.
foreign
business.
to
vantage.
our
trade
our
were
The
economic
in
portant that I would favor liber¬
defenses
spread
en-
leadership.
trade will strengthen rather
military
as
of
want
American
significantly to strengthening
responsibility
judgment,
for
apart
alizing
against
can
Freer World Trade
gravely
ragged edge of
survival.
in
pull
Our
subversion.
same
portant
with
and
ened
light*
security would
jeopardized. By the
token, an economically
healthy Japan could contribute
be
Japanese
—
trade
long if we permit
protective alliances to weaken
our
national
own
American
usual for very
-
our
in
I do not see how we
to
conduct
business
expect
Com¬
to Japan's great
industrial
capacity,vast labor force and
Each
and
involved
policy.
by growing
leading to in-
Communist
heir
mar¬
$190—the
the
large
China, Japan
outlets
Still,
our
But
reasons.
to compensate for its former
must
or
or
distress
policy.
the
want
the world's greatest
are
re¬
only 16% of its land
As
raw
situation.
88
few
in
still face
smaller
area
with
and
economy,
port
defense
sustain
an
California,
island
world
economic
must
United
of
the Japanese
desparate
Japan
striving to build
bastion
a
the
est
Should the Communist world fall
sified
foreign policy.
our
hinder
tions
as¬
other illustra¬
many
the
Japan
into
Communists,
economic
making Italy
which
present trade restrictions
do
and
were
ing in
great
heralds
two-faced
were
import
controls,
all
responsibility for leader¬
ship in liberating the free world's
of
us
dump
in traditional
Such short¬
quotas, and bureaucratic red tape.
On
exchange
bar¬
and world trade. Our general sup¬
report
tions
helping build
there have been
promising signs of change in our
industry's attitude toward tariffs
port
There
arable.
scores
Recently,
broadening
from
nese
whether
hind those treaty arrangements by
is
there
Yet,
strong protectionist attitude with¬
directed
lis
States.
sources
9%.
in
with
are
have
remarkable
duties
of
We
history.
and
forged
ties
ican economy.
is
world alliance.
network
Zellerbach
D.
Today, the American paper and
pulp industry is more soundly
based and is more vigorous and
Our
policy
already
Amer-
versatile
foreign
free
economic
an
to
products
trade
we
had urged
seen
we
freer
of
fully ex¬
Communists who
the
that
the
some
were
We have been
strengthening
the
grow-
industry
g
in
Our
industry,
about
businessmen
and
by
seen
dollars to buy
earn
actions
us
export
products
serted that
home.
here at
and
have
we
markets.
claimed
Thus
liberties
protects our
individuals
as
become
the fifth largr
est
which
ance
We
restrictions.
trade
and cement the free world alli¬
en
and
paper
Italian
ploited
We
checked.
con-:
prevent
and
also
have
sighted
cannot have strong
about
make
American
Communist drive for world domi¬
is
to
American
I
us.
I
selling
products
to
needed
businesses—unless the
prosperous
without
in¬
some
350%,
now
men
check
industry's outcreased
free
as
tariffs
they could
so
We cannot hope to survive
trade.
govern-,
could
weapons
Then
from
very
nation
than 35 years ago.
time
the
them
promote the expansion of the
I attended my first American Pa¬
raise
us
Italians
expanding free wtnrld economy."
an
and
Organization.
try Y as well as
foreign competition to the paper industry has been greatly
exaggerated, and concludes "it seems clear that it is in our
1
they
their
that, they
bases to the North Atlantic Treaty
"j.freer world trade, instead of protectionism,
.
troops
Italy
earn
democratic
a
that
so
must
necessity of trading with the Chi¬
In
.•
world—so
keep
—
slipping
We
to
representing
of
stimulating
foreign trade so
and
in. the
Asia
issue.
markets
munist orbit—either by the sheer
the Italians could
way
in
serious
our
foreign policy
while
the
had
In pointing out the remarkable growth and prosperity of the
American Paper and Palp industry during a period of declining
tariff protection, prominent paper manufacturer, and self-styled
•
restric¬
the United States abroad.
By J. D. ZELLERBACH*
...
trade
our
,
deadly
Lehman Brothers
on
page
if
38
f
f
The Commercial and Financial Chronicle
1026
14
small
Puerto Rico's Achievements
supplies
large
terials.
Development
By GUILLERMO RODRIGUEZ*
Thus,
develop
In Economic
a
Instead
lieve it
Puerto Rico
President, Government Development Bank tor
we
not
we
ma-'
try
to
"consume, we be¬
practical to special¬
more
of
fewer,
Our
indus¬
production
items.
selective
more
do
do
raw
we
the
in
of-
self-contained economy.
of r trying
to
produce
everything
ize
less
island, .much
have
Leading Puerto Rican banker discusses aims and accomplish¬
try must develop under the pressure
of efficient American com¬
ments of what is called
petition. As
Describes activities
Administration
other
and
the movement.
"Operation Bootstrap" in that island.
of Puerto
Rico's
Economic
Puerto
Rico
offers—abundant labor supply and
"open door" policy to stimulate
private initiative and attract both capital and technical skill.
Certain
facts
an
will
Rico's
Rican people began to assert their
Net
income
$125
to
in
economy
in
capita
per
years.
from
rose
1940
$430
1954;
recent
in
$121
to
took
Puerto
over
the
political
precedence
its
of
The
initial
call
lion; business
profits fro m
$75 million to
centered
$ 3 5 2
and
million
GuJlermo Rociiiguez
bank
stages
on
real
of
"Operation
difficult.
were
Boptstrap"
what
Bootstrap"
Investment
agriculture,
It
estate.
we
habits
commerce
appeared
vir¬
tually impossible to attract capital
investment
for
from
The government had to break the
$93 to $393 million; external
from $200 million to $860
million; and government
rose
revenues
from $35 million to $147 mil¬
lion in the
same
period. Other in¬
ice
factories
to
which
free
problems,
development
directing
302
industrial
definite
solution
promise
of
of
plants offer
the eventual
economic
our
prob¬
gram
four
developed
centuries Puerto
under
eignty and for
a
Spanish
Rico
sover¬
far shorter period
under U. S. sovereignty. It was in
1952
that the people of Puerto
Rico founded the Commonwealth
to
to
the
promotion
of
302.
(2)
Newspaper and magazine
advertising in the large manufac¬
turing centers of the United States
of our industrial advantages;
(3)
Intensive
distribution
of
literature containing facts of in¬
manufacturers
to
terest
vestors; and
(4) Maintenance
promotion
of
establishment
plants
becomes
pass,
more
easier.
obstacles
new
Today,
are
of
industrial
made
in
new
As
the
are
re¬
invest¬
Puerto
Rico
by U. S. insurance companies and
pension
funds
in
amounts
inconceivable three
or
that
four
years ago.
We do not have
industrial
large market
products on
our
a
pnases
hours
watt
in
1954.
in
An
1940 to
million
851
abundance
of
water
supply is equally essential to an
industrial program. Our Aqueduct
and Sewer Authority has doubled
the
potable supply within the past
10
years.
We
established
have
agencies
Wall Street, New
growth. Time does not permit me
announced
to
Tague has joined the firm to assist
in
the underwriting department
and wholesale dealer relationships..
into greater detail on the
agricultural program, which thus
go
far
has not
been
successful
as
as
our
industrial
still
seeking satisfactory solutions
problem.
We
program.
are
Legislation
Creating
Favorable
a
refers
million every year. This
only to promotional ex¬
to
not
penses,
capital
expendi¬
tures.
if
for
failed
I
mention
to
the
commercial
legisla¬
the
In
activities
Rico
Puerto
can
have
we
or are in the process of
approving, modern laws of labor
relations; a new income tax law;
investment
others
and
character
which
of
similar
a
believe
we
a
a
factor's
receivable
law;
accounts
an
act;
company
corporation
act;
are
capital. For those who would like
to go into the subject in further
essential.
have organized an ex¬
hibit of "Operation Bootstrap" on
poverty to plenty in 14 years. Al¬
though trails have been broken,
display in the Masonic Hall here.
more
Puerto Rico has not passed from
remains to be done than has
been
Assisting
Governmental
Agencies
Spearheading "Operation Boot¬
is the Economic Develop¬
strap"
Administration.
In
addition
described activities,
it conducts in Puerto Rico
exten¬
of aid-to-industry,
extending from labor training to
advice on production techniques.
programs
Two
other
governmental agen¬
cies participate in the Operation.
The Puerto Rico Industrial Devel¬
Company,
million, uses
opment
$50
capitalized at
its resources
has
done.
set
a
in
roots
has
the
tion.
Thus
school
population
people
per¬
no
we
in
in¬
1910 to
2,200,000,
in
300,000
64
from
46
years
in
offer to sell nor a solicitation to buy any of these securities.
offering is made only by the Offering Brochure.
in 1954.
years
in adversity; firm in
profoundly democratic;
thirsty for knowledge: apprecia¬
tive
to the
are
NEW ISSUE
qualities
Puerto
ideas
tains
of
that
Rican
monwealth
others;
describe
people.
of
and
initiative.
British Western America
Puerto
benefits
will
be
It
Common Stock
( Par Value $.25 per Share)
Share
Copies of the Offering Brochure may be obtained from the underwriters
only in Stales in which the Offering Brochure may legally be distributed.
S.
D. Fuller Co.
&
39
Broadway
New York 6, A . Y.
Vermilye Brothers
30 Broad St.
New York 4, N. Y.
,
Street,
1145
advertising
technical
writer and
Sixth
West
the
joined
has
production,
ing
staff of Darwin H. Clark Co
,
as
a
who speaks five
lan¬
has written many articles
petroleum,
including
"The
History of California Oil" for the
American Petroleum Institute
Thorne,
guages,
on
Quarterly and a similar article for
50th
Anniversary
Issue
of
the
"Westways." For 10 years pre¬
he was with the United
States Corps of Engineers and was
chief administrative assistant of
vious,
in
headquarters
California.
was
Region
District
Fifth
the
In
this
in charge of all
with
Santa
Maria,
capacity, he
administrative
work in connection with
approxi¬
anprenticeship
an
Rico
main¬
of
rests
tion
on
stimulates
economic
among
private
that the
expansion
all
Joins Davidson Sfrff
(Special to The Financial
that
serve
a
&
son
Street.
Co.,
He
925-C North Fulton
previously with
was
Taiyo Securities Company.
With Mutual Fund Assoc.
(Special to The Financial Chronicle)
SAN
Paul
people.
FRANCISCO,
L.
Gerber
nected with
ates,
we are
444
has
Calif.—
become
con¬
Mutual Fund Associ¬
Montgomery
Street.
Lynn E. Gochenour
solid
ever
the
Chronicle)
FRESNO, Calif. — John M. Kubota is now affiliated with David¬
of the
foundation
present resolu¬
economic development
on
the
his father's
in
printing plant in Los Angeles.
Com¬
proposes
spread
building
must
Price $1.00
per
the
The
people. Our conviction that
Corporation
Calif.—Frank
prominent
technical
authority on advertis¬
ANGELES,
o r n e
writer and
an
nology,
Uranium
these
"open door" policy with
regard to both capital and tech¬
298,400 Shares
T h
1940
Resolute
The
Darwin H. Glark Co.
LOS
550,000 in 1954 and life expectancy
will;
an
Frank Thome Joins
con¬
enrollment,
of
from
creased
to
Tliis advertisement is neither
& Co.
mately $150,000,000 of construc¬
sider
the
mental
and
San Luis
physical tion, including Camp
health of the individual the cen¬ Obispo, Camp Cook, Hoff General
tral theme of all our efforts. More Hospital and Santa Maria Military
than half of our public resourcesl Air Base. He knows printing pro¬
duction thoroughly having served
are dedicated to health and educa¬
increased
De-
the
and
In Puerto Rico
manence.
assistance.
Government
of
mass
significance
no
a
The
"Operation Bootstrap"
goal of 500 new fac¬
tories; of 74,000 new jobs; of a $2
billion gross product, all by 1960.
A program of economic devel¬
opment that does not have deep
in
the
construction
of
rental factory buildings, but also
provides other forms of financial
chiefly
was asso¬
and
act;
we
previously
appnpv.
by other areas in¬
attracting outside
detail,
Edward■»
W.
production manager. For the past
live years, he has been advertising
manager of Baker Oil Tools, Inc.
of Los Angeles and Houston. Mr.
lien
in
that
adopted,
Much of this could be done ad¬
terested
developing
which modern industrial, financial
thrive.
new
vantageously
Co., Inc., 35;
York City, have
ciated with A. C. Allyn
This picture would not be com¬
plete
and
$1
Mr. Tague
&
Investment Climate
in Puerto Rico.
than
Herrick
Barrett
this
to
need
wealth Government expends more
lague
expanding and improving our
agricultural resources, which are
basic to any program of economic
tion that will create the climate in
In these activities the Common¬
Edward
W.
for
daily visits to U. S. manu¬
try to convince them
of the advantages of establishing
sive
plants increases,
ouier
Thus, the Puerto
Rico Water Resources Authority,
created to provide abundant elec¬
tric power, increased the energy
generated from 161 million kilo¬
make
As the number of
for
in¬
of
expansion
Tague Joins
of the economy.
facturers to
to the already
ments
and
Angeles, from which a large
of industrial representatives
ment
Panel
Discussion of the Inter-American
Investment Conference, New Orleans, La.,
March 1, 1955.
the nation;
Fortunately, this program has
grown in geometric progression.
were
the
able to give their full
as a result of five years of
work; by 1954 the figure had risen
moved.
by Mr. Rodriguez at
for
pro¬
lished
years
address
operating
Thus, while by 1947 only 21 new
plants had been estab¬
Constitution, established the prin¬
ciple of their sovereignty, and
*An
sold
industrial
thus resolved their political status.
deep rooted Hispanic cul¬
which we
preserve
with
pride, received the stimulus of the
later
private investment.
the
ture,
were
those responsible
the development
were
in voluntary association with the
United States, adopted their own
The
industries.
routine
of
attention
lems.
For
new
private Puerto Rican investors.
Once
industrial
proper,
in
by establishing and operating
dices show similar progress. As to
new
out
staff
resources
trade
by television and by motion pic¬
tures, and in newspapers through¬
Los
"Operation
mil¬
Escape your attention
that a program of industrial de¬
velopment must be accompanied
by tne
Thursday, March 3,-1955
.
Barrett Herrick Go.
cannot
offices in New York, Chicago, and
status.
from
1954;
in
reform
determination
now
in
1940,
that pressing social
economic
million
$567
in
Popular Democratic Party
affirmed
Rico
and
salaries
the
and
total
g e s
when
Puerto
overwhelming majority of
an
who
$1,172,000,-
v/ a
The
years.
organized by Luis Munoz Marin,
million
0;
during
its votes, it supported the program
economy from
0 0
50
personality
own
of
product of the
to
last
with
gross
$277
the
It
.
W. E.
long-term loans to industry.
(1) Intensive publicity by radio,
North
culture
It includes these things:
program.
help put in
relief the development of Puerto
American
'
powerful tax incentives—we have
created
an
active
promotional
Rico, and concludes the Commonwealth
of Puerto Rico maintains
fundamental
two
which
advantages
favorable invest¬
a
result, we develop
external trade.
a
our
the
Around
governmental agencies assisting in
Lists legislation creating
ment climate in Puerto
intensively
Development
velopment Bank, with capital and
reserves of
$30 million, provides
.
Lynn W. Gochenour, partner of
Lam son Bros. & Co.,
on
Feb.
17.
passed away
Volume 181
Number 5408
.
.
The Commercial and Financial Chronicle
.
15
1027
in the money market under
pres¬
Stocks Follow Bond Prices
ent
to
By B. BARRET GRIFFITH and BRUCE ELLSWORTH
and
Colorado
Springs, Colo.
Members New York Stock
When
ease.
Exchange
moved
Authors present data relating to fluctuations and trends of
1953,
stock and bond
prices, and conclude
months to a couple of
on
swings of several
swings of several months
couple of years, bonds often
a
do
turn
before
stocks"
long cycle in bonds
bonds, low grade corporate
bonds, and common stocks weekly
since January of 1954. The yields
"the
and
charted
are
inversely to reflect
changes in price. From the chart,
note that Treasury bills declined from yielding slightly over
we
1%% at the start of 1954 to about
%% in June. Since then the yield
has advanced
and
to
Recently,
that
more
the
from
money
Reserve
money
in
ease
by the
nation's
Federal
the
Reserve
reserves
by
Obviously,
million.
$700
its
over
Federal
active
the
bond prices were depressed at the
time because the money situation
ury
and trends in
worthwhile
indicated
borrowings
some
mutually independent, though "stocks still follow bond prices."
"On
is
Banks exceeded their
bonds often turn before stocks,
lcng cycles, the trends in bond and stock prices are
years,
but in the
to
to
banks
that,
it
their actions.
have
Board favors money ease
former
policy of active
John II. Lewis & Co.
New York
conditions,
review
officials
than. 11/4%
encouraged banks to liquidate in¬
to
pay
off their in¬
vestments
debtedness to the
0.
,
Reserve
inco
Slnce e5r?7 «5
.,
Banks.
,.
,
?.e Sltuatl0n has
«
hag^lsTdt^in excll! r™°e" vUfor
P.? resulted in excess reserves or
the natlon
the
bank's
banks over and above
s
borrowings
from
Re-
fh^dK' Jfu
S
Federai
Government securities bv
r°V^ Weekly
Reserve
erratically since then.
Reporting Banks
Treasury bonds have were increased by about $9
price, increased in
yield, since last July. Lower qual« n.™ no Pre.fure °n
ity
corporate
bonds
advanced
to liquidate overall investslightly in price until early in: ments However, neither is there
moved
Long-term
declined
in
™erf
ban^s
.
December,
while
common
stocks
continued
in
a
strong upward
trend,
declining
yields,
through
the
end
of
January!
Throughout 1954, yield and price
price
B. Barret Griffith
the
stock
market
independent."
are
generally
relationships between the highest
grade investment
mediums
and
lower quality issues have followed
Bruce Ellsworth
are
These
mutually
•*
conclusions
accepLd 'mu
but
may
•
;
l°r
rates
a
giving
an
bond
prices
Dills
Vvnnric
last
ohnnt
s~\
4-
Tr»
summer,
viAtriTfi
nrjPPo
f
rf
v\
The
prices,
o
Treasury bonds about a month
later, and lower quality corporate
ques-
Annn
effpet
ine
.
irti
indication
of
are
turn
a
in
stocks.
The
of
ciieci
Treasury
bills,
on
.
iH
t
xnese
in
th
°£ces dLline in bond orices and
c
"eduction ? ^bout 3,2 billion
ings
three month
long-term
YIELDS
tops
Because
Treas-
of
more
than
passing
the
ON
of
Federal Reserve is
primary controlling influence
SECURITIES
p
*
government
the'
0
i 11111111111111111111111111111111111111111111111 TOrfl
n
1111
since
in
been
the
organized,
Royal
provide
with
Bank
others
Kormendi
with
securities,
H.
medium
combining com¬
pounding of income with poten¬
tial capital growth and also
per¬
mitting them to defer receipt of
a
part of their income to
when
their
sources
The
income
is
with
shares.
mon
to
is available for
they
Mr.
ness,
&
com¬
and
firm
has
70
Pine
Street,
Williams, a veteran of
in the securities busi¬
was previously with Drako
with
in
years
municipal
thereto, he
H.
M.
bond
and
Kidder,
he
brokers.
associated
was
Byllesby
pany, Inc. and
&
Co., where
distribution
the
Co.,
Prior
Com¬
Peabody
managed
municipal bond departments.
individually elect to
redeem shares and thus is planned
to
offer
a
useful
income
tax
With Marache,
status.
Dofflemyre
(Special to The Financial Chronicle)
Officers of
nel
municipal
The
many years
accumulates
in
the
headquarters at
York City.
investment
an
shareholders
which
of
department.
New
re-invests the income from its in¬
vestments.
This accumulated in¬
come
associated
Vice-President
from temporary offices at
Broad
Street
to
permanent
60
other
redeemable
It
that Edward
now
as
moved
be less.
may
Fund
company
from
is
firm
Manager
bond
time
a
the
and
ment
announce
Williams
with
invest¬
an
& Co., Inc., dealers
distributors
of
investment
and
offices
Building .to
professional
executives,
and
men
A.
the
Fund
LOS
Lio¬
are:
Forsyth (Presidents Do¬
minion
Steel & Coal
ANGELES,
Calif.—Jamea
C. Flanagan has become associated
with Marache, Dofflemyre &
Corp., Ltd.),
Co.,
634 South
Spring Street, members
of
the
Los Angeles
Stock Ex¬
change.
Mr. Flanagan was pre¬
viously
with
Company and
ment
First
California
Standard
Invest¬
Company of California.
moment
there
are
tentatively concluding
that the decline which began early
last summer in high grade bond
later
renewal
of
toward
0.5
be
regarded
the
undoubtedly
as
primary
inflation,
G.
(Special to The Financial Chronicle)
Porteous
SAN
(partner of McMichael, Common,
Howard, Ker & Cate), Secretary;
Jean
Raymond;
John
Charles
&
Co.
FRANCISCO,
Richard
I.
associated
Russ
Mr.
Limited), Managing Direc¬
Francisco
Cottrell
Merrill
tor.
with
Building,
San
(President of H. C. Flood
Cottrell
Calif.—
has
become
&
Collins,
Holt
members
of
the
Stock
was
Exchange.
previously with
Lynch, Pierce, Fenner &
Beane.
a
This advertisement is neither
an
offer to sell
nor a
solicitation of offers to buy any of these securities,
fi'he offering is made only by the Prospectus.
Without
NEW
ISSUE
March 3. 1955
to
between
deflation, calls
common
125,000 Shares
stock in¬
ahead.
P. H. Glatfelter
becoming too involved in
of monetary factors,
stock
investors
might
Company
study
common
Common Stock
tentatively
conclude
that
until
Treasury bills and long-term Gov¬
ernment
bonds
,
closely the trend
of bonds during the weeks
the
1.6
John
trend
best
course
or
the attention of
1.6
their
do
middle
a
vestors to watch
1.0
Bank);
higher interest rates which
choose
either
1.0
ion
prices is fundamental in nature
theoretically can be said to have
started early in 1946. The dilemma
of the money managers, who will
0.5
Holt & Collins Adds
Domin¬
Rogers
for
reasons
anc*
W««kly
issues
December" 1954'
At
the
Feroont
Yield
has
these
oi
in Weekly Reporting Banks' hold-
>mP°rtance-
accompanying chart shows
the trend of yields
With Kormendi & Bs.
Super¬
vised Executive Fund
(1955) Ltd.
—
r* v-»
bonds early in December indicate
that common stock prices have
fnrm
recently, or will shnrtlv
interest
now
Canada
bonds if the Federal Reserve does Chairman; H. Carson Flood (part¬
not furthe^ increase the supply of ner of Flood & Company), Presi¬
an(* credit. Consequently, dent; Elliott M. Little
(President,
J?1?
e0nf ^ nfS appear doubt~ Anglo Canadian Pulp & Paper
*.n ^aclJ'
money SUPPLY Mills Limited),
price
and
MONTREAL,
"
Heasury
TrpQcnrv
ii..
during the
last several months raises
tion as to whether or not
more
Edward Williams How
Fund Formed in Montreal
Vice-President;
about the same, lncreasJoseph M. Breen
(President of
comPetition for it in the form
Canada
Cement Company Lim¬
customary patterns. The question
loans to reviving businesss and
is whether or not the price tops the growing supply of mortgages ited); Harry J. Carmichael (Vicefnr
TrMcnrv
hills
last
summer Wl11 have a depressing effect On President of the Toronto
•
7
overlooked at times. The
rising
trend in interest rates j
ho
be
i^c^tive for banks to buy
Supervised Executive
advance
in
(Par Value $10 Per Share)
price,
investment commitments in stocks
generally
2.0
are unwarranted.
The recent experience in London
2.0
emphasizes
"stock
Long Torn Treasury Bond*
2.6
2.6
the
prices
conclusion
still
bond
prires." The 2]/2% Consols reached
a
high in October, 1954, and de¬
clined abruptly, losing about half
of the ground gained during the
previous
bull
market
that
had
lasted
since
May,
1952.
Stock
prices continued to advance until
3.0
3.0
early February,
date the
Low Grade
3.5
Corporate Bonde
3.5
1955. Since that
"Financial Times" Aver¬
has declined
age
some
Holders of the
that
follow
offered the
the
rate
record
Company's outstanding Common Stock are being
at #37 per share for the above shares at
right to subscribe
of
one
share for each
1.76 shares of Common Stock held of
March 1,
1955. Subscription Warrants will expire at 3:30
P.M., Eastern Standard Time, on March 16, 1955.
on
The several Underwriters have
agreed, subject to certain conditions,
unsubscribed shares and, both during and following
the
subscription period, may offer shares of Common Stock as set forth
to
purchase
'in the
10%.
any
Prospectus.
With Shearson, Hammill
(Special to The Financial Chronicle)
Copies of the Prospectus
SANTA
4.0
4.0
may be obtained from any of the several underwriters
only in States in which such underwriters are qualified to act as dealers
BARBARA, Calif. —
Ceorge L. dePeyster is now with
Shearson, Hammill & Co., 1006
Anacapa Street.
in
securities
and
m
which
such
Prospectus
legally be distributed.
may
Columbia Securities Co.
4.6
4.6
SALT
LAKE
Columbia
engaging
from
6.0
6.0
a
at
Feinberg,
345
Utah
President;
The First Boston
is
Corporation
business
South
are
—
Company
securities
Officers
McGillis,
Zeke
in
offices
Street.
CITY,
Securities
State
William
Richard
Kidder, Peabody & Co.
Merrill
Lynch, Pierce, Fenner & Beano
B.
L.
Vice-President; and
Stroud &
Company
White, Weld & Co.
Hemphill, Noyes & Co,
Incorporated
Tucker, Anthony & Co.
E. W. Clark & Co.
Reynolds & Co,
Blunt Ellis & Simmons
Janney & Company
Snyder, Secretary.
Incorporated
6.6
Yarnall, Biddle & Co.
6.6
With California Investors
A. E. Masten & Co.
Newhard, Cook & Co.
F. S. Smithers & Co,
(Special to The Financial Chronicle)
LOS
6.0
Jan
Feb
liar
16
19
26
6,0
Apr Jun
30
4
Jul
9
1964
Aug Sep
13
17
Oot
Not
22
26
Deo Feb
31
4
1955
ANGELES,
Calif.
—
Solly
Black has been added to the staff
of
California
shire
Investors, 3924 Wil-
Boulevard.
Woodcock, Hess & Co., Inc.
Harrison & Co.
Warren W. York & Co., Inc.
The Commercial and Financial Chronicle
1028
16
STREETE
By WALLACE
Stocks
with
were
their
back
highs
dabbling shares three times
this
again
held
somewhat
restrained
Coca-Cola Inter¬
currently bid around $900 af¬
ter having traded at a peak of
far this $1,332 in 1948.
Steels
were
*
*
American
it
somewhat
in
de¬
Telephone,
spite all the company denials
left to the steady favor, too. And again and the fact that no immedi¬
rails to pave the way into it is based on solid fundamen¬
ate benefits to the company
strange territory by nudging tals, particularly the high can be cited in any split, con¬
the reading to a quarter cen¬ level of activities for the first
tinued to be a red-hot split
tury high. Industrials had a quarter, which is largely due topic. The stock pushed to its
little
trouble
with the old to the volume output of the best
reading since the peak of
mark of a couple of weeks automakers. Bethlehem Steel the 1946 bull market
swing,
was a
market bellwether on
ago, which was the highest in
a
fraction over $200, with
history. They all but made it strength, a share of the fame only a bit more than a dozen
one
day, only to miss by a few woven around the guessing points to go to equal that
cents
finally when enough game of whether it will even¬ price.
That Telephone has
selling elsewhere shaded their tually be able to merge with been behind the market by
Youngstown Sheet. A r m c o some measurements for a long
gains a bit.
i'fi
Steel, which has been doing time is
generally agreed in
Aircrafts
orders
once
a
the
were
with
note
around
so
that
dour
every
in awhile the group
has
that looks
bit. But usually
spell
sinking
drastic for
a
in somewhat
quickly to minimize the dam¬
age.
At least temporarily,
however, the uninterrupted
sets
recovery
some
wide
badly
on
without
cause
erratic
to
swings,
of the others because it
able to stand out this week.
and
action
*
rather
sagged
much
*
last
*
The
split
prospects
were
delay. Be¬ still sought
of its erratic habits
re¬
some
cently, the issue is somewhat
further under its high than
and featured in
wide moves.
Reynolds
year
handful
issue.
Hudson
bit
to
more
turn
even
*
*
wider
moves
U.
S.
Playing Card —an as¬
sorted list.
Wm. J.
*
*
With
*
Utilities in their
industrials
despite
vestors had turned
on
them
indi¬
some
institutional
that
cations
bit
a
the
in¬
securities with institutional investors
of record only. Private placement of these
was
negotiated by the undersigned.
$4,700,000
Telephone Company
BRISTOL, TENNESSEE
it-
*
*
Taylor & Co.,
sour
South
105
of
shares
did
natural
the
bit
a
gas
better
Oils have been
ble
having trou¬
widespread
popularity for some time with
1
building
up
of various deals able momen¬
tarily to give a lift to such as
Texas Gulf Producing, Deep
Rock Oil, Richfield and Pa¬
Mortgage Sinking Fund Bonds
February 1, 1980
Oil.
Western
cific
Before you
the
For
the
action
old
was
the pattern.
Stock
Ex¬
change,
as
r e
i
g
t
s
a
red
e
representa¬
tive.
Mr.
Mc¬
has
Gregor
had
9
years
experience
on
St.
Salle
La
as
Trader,
a
latest
his
William J. McGregor
as¬
with Glore, For-
being
sociation
& Co. He is a member of the
National Security Traders Asso¬
gan
ciation.-
READ HARVARD BUSINESS REVIEW'S
IMPORTANT NEW STUDY
OF GROWTH STOCKS
J '
This
Boston, Mass.—In
pearing in the
vard
Business
strength in a few of the
favorites, like Amerada,
out
of
steam
somewhat
quickly and backing and fill¬
ing set in again.
*
*
-m
,
pioneering research report
change
may
an
your
article
investment outlook.
by
ten
include: Plant Location—1965
cial
the per¬
formances of growth stocks, income
stocks, Standard Statistics 50 Indus¬
trials, Dow-Jones Industrials and 10
compares
over
examined
Can
the last 18
also
in the re¬
cently buoyant cement issues,
the electrical manufacturing
shares, the motors in view of
.
.
Moscow
.
.
Buy Re¬
Com¬
Report
Match
Us
The Product
SUBSCRIBE
ciation.
.
.
.
Indus¬
and the
NOW —GET VALUABLE
FREE!
BOOK
carefully researched article
entitled, "Unrealized Potential in
Growth Stocks," Mr. Anderson de¬
his
fines
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top.
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liow
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...
Brand.
some
In
or
Electronic
.
.
Timing Your
...
Progress
trially?
And the comparison reveals
striking conclusions both as
income yields and capital appre¬
Leasing
of
Make
.
.
.
A
puters:
years.
to
and
Retirement
*
apparent
Cons
Observing People
Company.
seems
business authorities—
top
Pros
Company,
Others—all writ¬
Business Review.
ap¬
issue of Har¬
Review, Robert W.
new
Anderson, of the Piedmont Finan¬
Part-
Consolidation patterns
of
Midwest
make another investment...
greater bulk of this large di¬
vision, however, little decisive
ran
1955
La
Street,
members
on
price-earnings ratio ... explains why
professional investors have failed to
take full advantage of them.
Oils Indecisive
time
1,
trading
Salle
Some
Taylor & Go.
department of
commitments.
as new
time coincide
CHICAGO, 111.—Effective as of
March
1, 1955, Mr. William J.
McGregor became associated with
quiet way
outperform the
able to
were
any
McGregor Nov/
enon.
while
occasional flareups on rumors
This announcement appears as a matter
March
necessarily at
not
of the Chronicle. They are
presented as those of the author only.j
better than
little
a
Investment Trusts
dimmed
persistent demand. gain of more than 90 points
Pennsylvania, particularly, pljus an additional 4 0 - o d d
has been heavily traded and points the next day.
It suc¬
has the distinction of having ceeded in working to a cur¬
shown weekly volume of rent position as the highestaround a third of a million priced issue on the New York
Series E, Due
was
in
somewhat
3.25% First
its
with those
merely temporary phenom¬
minority school around
rather freely predicted
—
Inter-Mountain
do
lift
mild
a
good earnings report
Incidentally, there was
Some rather dormant issues
only slightly
prominent in this section, but by its far higher price bracket. of recent weeks were in the
even
the long-frowned-on The issue crossed the $1,000 limelight on fat gains, not the
Eastern roads—Central, mark for the first time in its least being Procter & Gamble,
Biscuits,
U.
S.
Pennsylvania and Baltimore history with a rush this week, Sunshine
& Ohio
were
favored by the level reached on one day's Freight, Warren Foundry and
a
below
once a
Metals in
qualitv issues, with Dela¬ sensation, its
&
that
derived
a
rather extreme action for this
*
ware
Tobacco
combined it added
of points which is
particular was able that
some
spectacular that Western Union had
the others, a matter of around moves that aren't wholly jus¬
enough potential merit to sell
30 points.
tified by its good but not sen¬ at a better
price than Ameri¬
itit
sational earnings report. The can
Telephone.
It at least
stock added up a couple of achieved a
Rails Favored
standing half as
gains net in a high as the famous Bell issue
The rails with the help of; nine-point
couple of buoyant sessions.
commanded this week, which
good January earnings re¬
*
it*
is good going in view of some
ports showed more sustained
Bluest Blue Chip
rather poor market perform¬
demand than has been the
rule all year so far. Not only
Superior Oil was another ances years back.
the
well
and
*
❖
*
a
occasion but steadied
too
it
also
operated at a better rate
Western Union was some¬
in the first quarter last year
thing of a feature in the other
upward flights are a thing of than the industry as a whole. communications issues and on
Some of the specialty com¬
the past.
a
January earnings report
*
❖
itpanies, including Granite City that showed better results
General Dynamics, no new¬ and Superior Steel, were also
than the first two months of
comer
about
group
hints that the government
might re-examine its regula¬
tory reins and the utility
average posted a modern-day
high, best since 1930, but still
far below the 1929 peak when
somewhat better than the in¬ the Street.* But its
spirited the components of the aver¬
dustry generally, has reflect¬ action was too much to lay to
age were largely the old-time
ed
it
marketwise although even the multi-million dollar
utility
holding
companies.
Armco is in the odd position
air defense network contract The
wide-moving member of
of knowing that its first quar¬ awarded its Western Electric
this group, Panhandle Eastern
ter statement will not make
subsidiary, as far as majority Pipe Line, continued to sup¬
as favorable a comparison as
opinion is concerned.
stop-loss
enough
another
were
out of
a
pretty much
was
baccos
*
was
and
sway.
national, however, has come that found little incentive to peak for the last 14 months.
f The views expressed in this article
on
rough ways recently and is do much, although American
*
*
Thursday, March 3, 1955
.
International
year.
*
week, but the enthusiasm
so
.
Exchange where Coca- their impending labor trou¬ ply the larger daily changes
To¬ but without anything decisive
has long bles and the chemicals.
Stock
Cola
THE MARKET... AND YOU
.
.Zone
□ Check here if you're sending for the
State.
March-April issue alone at $2.00.
(Prices quoted for U. S. and
Canada)
Volume 181
Number 5408
The Commercial und Financial Chronicle
...
1029
cussed
in
detail
here.
Many
of
these recommendations, however,
are in line with positions CED has
WILDE*
Chairman, Research and Policy Committee, CED
Company
President, Connecticut General Life Insurance
Spokesman for the Committee
Economic Development,
on
though approving in general the President's Economic Report,
cautions against drawing conclusion that the Business. Cycle
has been tamed.
Gives as reasons for ^non-complacency:
(1) the question whether in 1953-4 there were strong forces
making for a depression; (2) no two economc adjustments
are exactly the same; and (3) correct timing is difficult. Con-
J
'
t
dudes, greatest aid government
(
confidence and
late
encourage
valuable contribution to
omy.
had
a
a
Finally, of course, we must be
ready to act in time. The success
Re-
c
the
for
siasm
success
of the
policies that
guided
the
record
It
testimony
this
chinery in motion when the eco¬
nomic indicators clearly call for
mittee,
o m
diagnosis
our
the
of
it.
B. Wilde
Frazar
econ-
led
to
caution equally against drift ana
omy
us
against precipitate action. We
placed our reliance on a flexible
monetary policy and on moderate
tax reduction with emphasis on
If
forecasting to tell accurately what
is in store in the months ahead,
supplementing automatic staof keeping the
bilizers in the job
WQuld
there
be
trouble
n0
in
knowing when to act and the de_
e
Qf action
needed
u9~+
we
servant
increasing incentives as a means
of
could rely on economic
we
K.jt'v
fore-
uncertain
with
faced
are
being
f
But
~r\
readv
to
the
act
stable.
As the Presi¬
Forecasting does have a part to
fully appreciates,
play in the quest for stability, but
were
no substi¬
it should never be master of our
for sustained confidence on
economy
report
dent's
these
tute
the
i
i
the
of
Tpnmmnnitv
!ius.mls!
that the
the
public and
Rut the fact
Administration was not
not stam¬
indifferent and yet was
peded into the use of more drastic
measures
tended
to
strengthen
particularly
confidence,
business
fidence
in
the
community;/and the con¬
of business and business-
makes for confidence on
men
part of the employees of business
a
tun rmhiin <*pnf»railv
and the public generally.
While there is much reason for
in view
of this record,
the
conclusion that the business cycle
has been tamed.
Happily, while
would be reckless to draw
it
the progress that has
made, the report stops short
accenting
been
of this conclusion.
There
are
not
for
about
our
at least three reasons
being
too
complacent
accomplishment:
_
First, it is questionable whether
the economy m
1953-54
was
risks
great
run
in
sub-
to really
strong forces
makmg for depression. The President's report identifies inventory
adjustments in the wake of the
Korean War as the primaiy brake
jected
his
many
notes of caution in
about the uncertain¬
ties and pitfalls of prognostica¬
tion. The emphasis is better put
on
strengthening the automatic
stabilizers in our economy.
This
report
JL
?
a
at the H
future
aeainst
insurance
and
an
Administration that might not be
ag
^is
one
bag been,
this
of
None
is
to
deny
the
have
We
made
progress
the road to stability. We
cannot, however, take economic
stability for granted. Neither can
ajong
we
take
economic
growth
«solved."
We
haven't
licked
gr0wth.
economic activity.
Turning from the past to the
present, the report recognizes—
and pr0perly so — that in times
for defense.
As a result of these
these, the government must
downward forces our stabilizing be
prepared to throw its weight
machinery was set m motion. The against
t00 much inflation as
machinery performed very well, against too much deflation. The
but it did not have to cope with
report rightly warns that ecostrong downward movements in nomic recovery must not be
jeoplant and equipment outlays or pardized by too much
speculation,
m residential
construction which It is
equally prudent to say, as
were relatively stable or increasthe report does, that government
mg. The year 1954 probably did much remain
ready to deal with
not provide a serious enough test
any setback that may develop,
to
wan-ant
giving
our
present
The underlying strength of the
stabilizing machinery an unlimit- current
recovery certainly makes
.
guarantee for the future.
economic adexactly the same,
"to impart
taken
time turned
right does
early is
decisions
and too
mean
will be
oat
to
that the
be
same
right next time. The
this
coun-
try must always have ready stabilizmg measures appropriate to
the
*A
occasion.
Each
situation
we
tive ease" to
an
confidence
will be
re¬
o
t
e
1
Sheraton
an
that
avoided
A
s t o r,
New
York City.
The
in the future.
The
report's
recommendation
to postpone the lowering of the
corporate income tax and of ex¬
1. The report's rec¬
ommendations involving changes
in the tax rates imposed on cor¬
poration
income
from
foreign
generally consistent
position that the tax
system should encourage foreign
investment,
although
the
CED
took\ no position on the specific
proposals contained in the report.
Sources
with
meeting,
which
is
pected
the
ex¬
to
be
largest
The CED, last fall, recommend¬
ed a gradual and selective reduc¬
reviewed
are
also
are,
of course,
duction Every inducement should
be
made
individual
the
for
to
in
lines
it
announced
was
by Thomas J.
of the Asso¬
President
Keller,
ciation.
are
our
and
tariffs
proposed
along the general
by the President
in
this
record
on
We
favoring
report.
as
equitable standards for the valua¬
tion of imported goods for cus¬
A. H. Smith Joins
Dwinnell, Karkness
BOSTON, Mass. — Anson H.
Smith of Dedham, former Trust
Officer of the Boston Safe Deposit
and
Trust
Company, has become
Dwinnell, Hark-
with
associated
ness
&
Street,
Hill, Incorporated, 70 State
dealers
in tax
exempt
bonds.
Mr.
in Part> the increased costs result-
all the
Smith, who retired recently
with the Bank, has
specialized in Municipal securities
over a long financial career.
He
in& from higher benefits and longer benefit periods. An extension
do to
has
seek work. Conserving the funds
ln
these ways will offset, at least
Federal Old-Age and Survivors
Federal
to
also
would
toms purposes.
stimulate confidence
with
CED's program.
tax rate
and
in
bility
unnecessary
re-
barriers to local in¬
when
vestment
re-
oe
relaxing
of
Board
Investment
Dedham Institution for
policy.
Govern-
changes in our economy,
reserve
of plans
establishment of
a
lishes
and
an
environment where
enjoy their work bet¬
where management is more
apt to recommend expansion and
women
Bloom is
Russell H.
—
engaging in
back-
ALBANY, N. Y.
business
we
may
ward off the
enemy
time enjoy an in¬
standard of living.
same
George A.
securities
offices
from
an
offer to
dispose of,
Such offer
or
or
solicitation
solicitation
is
of
an
made
offer to
Opens Office
Cohen
Belle
curities
144-37
is
engaging in
business
from
buy, the
•
securities
described
below.
only by the Offering Circular.
•
/
'
'
Ready-Made Buildings, Inc.
Common Stock
Offering Price: $2.00 Per Share
Orders executed by,
and Offering Circular obtainable from,
Aetna Securities Corporation
easy money
111
!],!S time,
Specific
recommendations in the report cannot be dis-
March 2, 1955
BROADWAY
NEW YORK
6, N. Y.
a
offices
Seventy-Sixth Avenue.
150,000 Shares
.
363
KEW GARDEN HILLS, N. Y.—
NEW ISSUE
,
at
Washington Avenue.
new products and
business, and capital is will¬
ing to invest its share to the end
that
—
Burnett is conducting a
new
creased
policy
recent offer in exchange
of a long-term government security seem appropriate and consist33
securities
a
George A. Burnett Opens
development of
municipalities in planning
a
men
ter,
and at the
is not
the
Russell Bloom Opens
BUFFALO, N. Y.
A friendly, constructive atmos¬
phere not only makes for pleasant
living in a country, but estab¬
revolving fund to aid States and
This
of
Savings.
don Street.
ments need flexibility to meet the
the
York City, and is at
Trustee and member of
ing maximum cooperation among
labor, management, and capital.
the govern¬
pursuing an orderly
debt-management
program
or
from
carrying out an effective
as
success.
a
Similarly
from
well
the
which
breeds
The government needs to
invest¬
business from offices at 372 Lan-
be allowed to prevent
as
psychology
New
present
deal to shape the environment and
the
several
continue its practice of encourag¬
the Federal debt limit should not
An up-to-date
and
search for growth and sta¬
Government can do a great
our
with
served
ment dealers and banks in Boston
circumstances
clearly call for action.
ment
encour¬
a
that
be
should
and
favorable climate. Intan¬
gibles can be just as real and just
as
important as other elements
age
debt
We believe with the report
state and local
after 13 years
Finally, let me repeat that of
things that government can
help a growing and success¬
ful economy, the greatest is to
personnel
consistent
be
and the
Tbe
*
York
an
as dangerous as too little
late, the retreat from "ac-
statement
by Mr. Wilde, submitted
to the Joint
Congressional Committee on
the Economic
Report, Feb, 16, 1955.
-
immediate upward thrust to general economic
activity." While too much and too
now
justments are
Because the decisions
not
So do the
rules.
sensible the government's refusal
Second, no two
guest
business cycle yet. We haven't
achieved
pushbutton
economic
was
ed
the
for
granted. At different times it may
ge appropriate to place more emphasjs on one than on the other,
gut we cannot call either problem
of
source
serious recession
for Federal public works projects,
heartening progress that has been
made.
added
These benefits
paid for non-pro-
eligibility
quite so ready, willing and able to
acj.
existence of ready
against recession
is
very
serves
tion
Jnnnmi,. anti-recession
th»
herent in misreading the economic
This brake
supplemented by a fairly
sharp drop in government buying
on
agreement.
limitin#—statutes
sounds
be
a
the
Writers' Asso¬
before April
tying policy closely to forecasts, umiunp-gwuies snouia
and
the President
rightfully viewed, with an eye to
the
~
satisfaction
We
actions.
board
Motor
Financial
a
be reduced by better administra¬
tion
and by
reconsideration of
measures
part
our
Insurance
been foreseen.
first
Ford
ciation, Mon¬
day, April 11,
recommendations for revising upward the duration and amount of
unemployment insurance benefits,
In some cases, however, unjustified drams uP°n the funds could
promptly in situations that have
not
authority
of
The
ploying fewer than four persons
have
is
ability to forecast the future than
it does on being ready, willing
and able to get stabilizing ma-
before
C
was
ago
year
n
1954
1953
through
i
in
score
important to realize that
successful timing depends less on
and 1954.
A
this
on
good.
very
economy
dinner
will
at
speaxer
time when the economic out¬
look is buoyant is encouraging.
The report's recommendations
of
the
past two years clearly for extending unemployment inshows that timing is all-import- surance to state and local governant in maintaining stability. The ment employees and to firms em-
enthu¬
port's
Company,
pru¬
at
Against Recession.'
i
is
the
and otherwise increasing our
interim
insulation
against
depression. cises, scheduled for April 1, is dinner in the
Ernest R. Breech
currently being studied by a CED
CED presented a comprehensive
Association's
We plan to have a
program to this same end last year committee,
17-year-history, will be attended
in its policy statement, "Defense statement on the subject ready
in its policy statement,
by leaders in business and finance,
share the Econ o m
This
Breech,
of
New
omy
a
Government
counsel.
R.
Chairman
should be promptly granted.
The fact that the government
is making these recommendations
our econ-
m
Federal
dent
,
face will prove in some way
unique.
Therefore,
success
in
Report are in accord with Com- maintaining stability will in large
mittee for Economic Development measure depend on the versatility of stabilizing machinery .
policies.
We
itv of stabilizing machinerv .
♦
the
Still others we have not yet
chance to explore.
automatic stabilizers
Financial Writers
Ernest
tions, the terms on which home
mortgages are underwritten by
particular interest to us are
the numerous suggestions the re¬
port makes for strengthening the
large extent the propositions of this very lucid Economic
To
'
our econ¬
Breech lo Address
the exercise of his power to
vary,
in the light of economic condi¬
Of
give business is to stimu¬
favorable climate for it.
can
great latitude for the President in
Others, such as
the government's plans for im¬
proving the nation's highway sys¬
tem— an important subject for
economic
and
military reasons
and for the continued develop¬
ment of the mode of living in this
country — are
currently under
study in CED. Without doubt, a
comprehensive, long-range pro¬
gram for the improvement of the
highway system will be a very
Stability fox Granted!
By FRAZAR B.
log -of construction projects is
clearly desirable.
Finally, the report's request for
taken in the past.
We Cannot Take Economic
17
se¬
at
The Commercial and Financial Chronicle
103Q
18
in
spite of
warning, it con¬
its forces ready to
First in Dse of Face?
■spring surprise attacks, WE THEN
SHOULD STRIKE FIRST. Under
International
ROGER W. BABSON
fuliy justified, claims t.he Captain.
a new book, entitled "Influence of
Relations," points to mistakes of delays in
Politics May Be
these mistakes in
uranium," and says
1956, President Eisenhower
Sees V/orld War III avoided
past, and outlines actions to avoid
future. Hints we "are sitting on a keg of
if
III in
War
in World
are
we
would be certain of re-election.
this year, at
having given
would be
Law,
the foe fair warning, we
referring to
the
In
III
ease
"sitting
or
keg of ura¬
it seems
nium" in November, 1956,
if President Eisenhower would
as
I cannot
be certain of re-election.
least.
,
War
World
a
on
Factor
a
in
are
we
imagine a better-trained man for
Presidency under such a con¬
the
In view of the latest
from
news
Russia, businessmen and investors
are
much excited regarding the
new
book published by D. Van
Nostrand
Co.,
Inc., New York
larly, Puleston has pointed to mis¬
takes rr.ade by military as well as
mind,
of
"Influence
For¬
Force
in
eign
Rela¬
the
As
tions."
Cap-
author,
tain
W.
D.
Japan to attack us on the incor¬
rect assumption that they could
defeat us before we could prepare
to
fight.
Puleston> is a
neishb°r °f
I ye
ImmUMm
*
mine
and
to
Col¬
Webber
Winter
I
must comment thereon and advise
what
know
fenses,
devise
tacks;
methods
bombs,
Mistakes"
Eighteen "Fatal
bombs
Captain Puleston told me last
spring of these "mistakes." Short¬
ly thereafter, Mrs. Franklin D.
Roosevelt,
the
late
President's
wife, was visiting my home in
Wellesley Hills, Massachusetts. I
asked her what she thought of
"mistakes"
these
which
for
the
Democratic Administrations were
Mrs. Roose¬
velt
answered:
"Well, notwith¬
standing Captain Puleston's socalled
'mistakes,' we won two
wars, didn't we, Mr. Babson? Per¬
haps someone should now write a
reported responsible.
book
the
on
Strokes'
'Eighteen
which
Master-
these
won
two
wars!"
Personally I believe that, al¬
though a fearless critic, Captain
Puleston is eminently fair in his
judgments. He emphasizes mis¬
takes made by Republican states¬
such
Root, Hughes, Kel¬
logg, Stiiiison, and President
Hoover equally with those made
by Presidents Wilson and Roose¬
men
velt.
as
He points to Wilson's states¬
man-like, but unheeded, appeal
to
European leaders in 1916 to seek
a
"peace without victory."
NEW
nation's
industrial
to read it.
everyone
do NOW.
the
particularly the strategic
areas,
against air at¬
lege
Conference,
Roger W. Babson
huleston
This
de¬
Capiain
should
we
it:—Increase
is
Simi-
efficient
more
delivery
prevent
to
of
retention of any such
or
held
now
the
in
country
agents;
keep a large
land, sea, and
air
forces, particularly fighting
planes, always on the alert; pro¬
by
enemy
proportion of
hibit
the
our
of unindentified
planes
into
certain
important
areas; finally, and most import¬
ant, decide
now
that we will
never
again await an "overt en¬
emy attack."
entry
Americans have been led to be¬
their
that
lieve
committed to
government
awaiting
an
enemy
points
to
honorable
an
and
long-accepted middle course,
namely, if an enemy nation, pos¬
sessing the ability to destroy us,
disposes its forces in position to
do
so,
immediately
should
we
mobilize and station
our
position to strike the
the 'United
defend
in
all
form
if
respects
48
forces in
enemy
States.
and
When
ready, in¬
are
we
the hostile
within
government that
hours
it
does
not
demobilize its forces, we will take
any or
all
country.
measures
If
the
to protect
potential
our
attack
should
as
coming next year certainly complicates the situation.
Certainly,
the character and location of each
industry should be most carefully
considered.
chure,
be immediately delivered,
mobilized, we would get an
SCIENTIFIC, INC.
(A Delaware
Corporation)
"
*
the
to
formulated
use
of
the
trademark
sales
instruments
leases
New
representative
manufactured
offices
York,
132 Front
"Flavettes"
and
manufacture and sell Flavettes, tablets
by a physician to curb the desire for
smoking and curbing the appetite.
as
attitude the United Nations
will
The
take.
mosa
was
which
N. Y.,
are
and
by
certain
others.
located
storage
The Company also
for
at
The
67
scientific
Company
Wall
and shipping
is
fact
that
fcrced
to
nese.
The
Formosa
today.
For¬
part of China for
a
turies until 1895, when
"give" it
Japa¬
developed
it
made
was
the
to
Japanese
and
cen¬
China
what
it
Street,
space
at
Street, New York, N. Y.
II, the Japanese were compelled
to give up Formosa and return it
to China. Strictly speaking, there
are two Chinas today—the Main¬
land
Communist
under
tration—and
Formosa
Adminis¬
the
under
conservative
Chiang
Kai-shek.
Both claim sole representation in
the United Nations. Thus far only
Formosa, ruled by Chiang Kaishek, is a member of the United"
An
Offering Circular
may
,
be obtained from the Underwriter;
What of the Future? My Forecast
Although
should hold For¬
we
the
for
forecast
that Formosa will sometime again
be
an
integral part of China
which will have a compromise
government such as General Mar¬
mosa
shall
recommended.
both
Chinas will
the
United
forecast
I
present,
Before
be
Nations.
that
World
be avoided for
then
members
of
39 Federal
further
I
will
War III
Even
though
Captain
Puleston*
logical in saying that only
by
"striking
first,"
after
fair
warning, can we avoid being de¬
seems
stroyed, I doubt if the American
people would support "striking
first" based only on Formosa. Yet,
the recent vote of Congress indi¬
cates that we might.
Certainly,
we are in a very critical situation.
least
will
to
be
tempted
capital ex¬
postpone
penditures until the air becomes
clearer.
Investors will j consider
the
stock
market
very
selective.
now
stocks
which
should
"war babies.''
per as
monev
rates would
probably
at the
World War III, and
a severe
profits tax be re-enacted,
President Eisenhower might veto
some of this legislation; but with
be
"fixed"
start
immediately
of any
it could be passed over the
gress
Tel. HUbbard 2-3790
President's veto in view of Rus¬
sia's attitude.
of the Offering Circular relating to the
Common Stock (par value $.01 per share) cf American Scientific,
me
Inc.
Name
Address
a
copy
•
editorial
no
situation
there
of
Carlisle Bargeron
having been a single
So far as I can ascertain there
criticism there was, was against;
dissent; what
were shy about the increase, and
there was
impatience at the slowness with which Congress acted. The CIO
instead
of
organizing
the forefront of those
a "Bundles for Congress" campaign
advocating an increase.
There is something wrong with this
astute minds of Congress know it.
Co.,
It doesn't
has
all
of
a
James
Barclay
to
Harding
the
board
has
been
has
of
di¬
Auto-Lite
announced
by
P.
Falvey, President. The
a partner in Smith
Barney and Company, New York
new
firm
of the
some
seem
likely that the country, particularly the CIO/
come
to an appreciation-of Congress, to a
sudden
realization that it has been wronged in the past.
1
-
The
point here is not whether the increase was justified/
It is just what is behind the phenomenon of no criticism at all
rga'nst it; instead, a seeming national approbation. Why, you get
the impression it is one of the most popular things Congress ever
did! It recognized its responsibility and measured up to it. Bully
for Congress! •
The
gimmick in the woodpile, in my opinion, is the forth¬
demands of organized labor starring Walter Reuther.
Keep in mind that Mr. Reuther, who came down to Washington
to urge the increase, does not himself get $22,500 a year from
his automobile workers
or
at least he did not at the last recording.
This is not any sacrifice on the part of Mr. Reuther but a little
device of his.
George Meany, President of the AFL, and John
L. Lewis get $50,000 each.
But with Mr. Reuther his service to
the
working
and to his country is just a labor of love.
man
the story goes.
•
director is
of investment bankers,
whom he has
many years.
So
.
Well, I can see Mr. Reuther and the other labor leaders in¬
dignantly sounding off that the Congress voted itself a 50% in¬
crease
and yet the "living wage" demands of the workers are
resisted.
The forecast
front this
and
in wage
generally is for a lot of disturbance on the labor
Particularly is it looked for in the automobile
summer.
steel
factor.
a
industries where vthe guaranteed
But it's
be made,
can
was
of
added
increase
is
observers
expense
nil.
But
hereabouts
the
to
it's
the
cost
are
being
always seeking.
of government
psychology
pointing out.
are
in fact is
course,
long delayed readjustment.
a
"readjustments" that the labor leaders
The
be
Congress having set the pace, so to speakr
increases, provides the labor leaders with plenty to rant
The argument
about.
annual wage is to
The picture of
made, that Congress' increase
of the
In
itself
of
Congress''
thing,
it
political
can't
affect
anything except the pocketbooks of the Congressmen and Senators.
But if. it should be the spark plug to a general round of increased
wages
to be,
in industry, which I believe the Labor leaders intend
then the effect
We shall wait and
upon
it
the country may be very pronounced.
see.
six
branches, operate a total of 81
banking-offices in communities -in
First Bank Stock
Offering Underwritten
First Bank Stock Corp. is offer¬
ing 361,922 shares of capital stock
(par $10) to stockholders of rec¬
ord Feb. 24, 1955 at $31.50 a share
on
the basis of
one
share for each
eight shares then held. A group
of
investment
banking
firms,
will
headed by Blyth & Co., Inc.,
purchase any shares unsubscribed
at the expiration of the offer at
p.m.
<CST)
on
March
14,
with
been associated for
Minnesota, Montana, Nortp Dako¬
ta
and South
Dakota, with
com¬
bined deposits, as of Dec. 31, 1954,
of $1,309,685,181.
Book value oi
the corporation's capital stock was
reported
of
1954
to be $32.93 at the end
compared
with
$31.26
a
share at the end of 1953 in which
a
stock dividend of
each
50
one
share foi
shares
outstanding was
distributed, and $22.56 a share al
the end of 1945.
Net income for the corporation
in
1954
to
$3,806,425
amounted
which, with equity in increase it
•
of this
undistributed income of active af¬
capital stock .will be added to the
general funds of the corporation,
permitting additional investment
filiates, brought combined net in¬
come of
$8,611,442, or $2.97 pei
Harding Director
elected
it
picture and
in
was
more
1955.
W. B.
been
not
those members who
2:30
rectors of The Electric
Please send
was
unusual
Wise invest¬
will probably not buy stocks
of companies in large cities vul¬
nerable to bombing. Furthermore,
,all investors should keep in mind
Ihe probability that prices, wages,
and
most
pros¬
ors
William
Street, Boston, Mass.
wondering just when it will become apparent.
Only a few years ago they ran into a
terrible demagogic attack when they voted
themselves retirement pay. Starting in the Far
West, and spreading over a large section of
the country, was a movement to load them
down
with old clothes, even
decayed fish
bones. It was called a "Bundles for Congress"
campaign and it was inspired by the CIO.
Similarly there was considerable criticism
when Congress voted itself a 50% increase
in 1946, although some criticism was allayed
by an accompanying reorganization and socalled modernization of Committee set-ups and
procedures.
This time the increase is again for 50%
but upon
a
higher plateau, from $15,000 a
year to $22,500.
And we are confronted with
this year at least.
McCoy & Willard
Investment Securities
an exaggeration to say that most members of Congress
rubbing their eyes over the ease with which they have
just passed themselves a handsome salary increase.
Some of
them are convinced there is a trick in it somev/here and they are
It is not
are
coming
Nations.
the Democrats in control of Con¬
OFFERING PRICE: $1 PER SHARE
By CARLISLE BARGERON
is
At the close of World War
other
American Scientific, Inc. is engaged in the sale, manu¬
facture, and distribution of scientific products, equip¬
ment
and
apparatus.
It has obtained an exclusive
a
dissent from outside of Congress.
study
investors are purchas¬
ing mainly-the aircrafts, metals,
and
oils, together with certain
" •'
"
(Par value $.01 Per Share)
acts
should
by
Mo.
of the News
-
what
Even
50,000 SHARES OF COMMON STOCK
right to
published
and
Ahead
.
the
at
license
written
Businessmen
AMERICAN
Na¬
"The
read
Cycle of Government," an
important
mimeographed
bro¬
ISSUE
the
Also
tural
is
attack with nuclear bombs. Pules¬
ton
you
Washington
the his¬
tory of Formosa before deciding
Businessmen and investors want
thinks
to
Presidential election
The
Readers
S. Do Now?
Strike First?
Should U.
re¬
address at ihe
leave
Re¬
this in
readers io
have
Edison E. Shrum of Fornfelt,
What
cently gave a
most dynamic
I
decide.
the
not
or
strategists
publican
untrained civilians. Poli¬
tary to
tics, between 1909 and 1941, by
weakening
our
armed
forces,
caused
first Germany and^ then
Whether
dition.
diplomatic leaders. He carefully
cites
proof showing the undue
subordination of the trained mili¬
.
entitled
City,
From
our
tinues to hold
Force in Foreign
Thursday, March 3, 195&
.
mobilizes
Should the U. S. Strike
Mr. Babson,
.
break; if the enemy "then de-we can prevent war.
If,
even
By
.
Proceeds from the sale
approximately
of
$9,000,000
in
certain of its banking affiliates in
the
near
future
and
other
such
investment from time to time.
The corporation
holds approxi¬
mately 96.6% of the .aggregate par
stock in
75
affiliated banks which, with
value of the outstanding
share.
This compares with
com¬
bined net of $7,534,199, or $2.60 £
1953.
share in
As of Feb.
23, 1955 and taking
into
consideration
the
presenl
stock offering, sole capitalizatior
of the company consisted of
-3,«
257,294 shares
$10 par .value.
of
capital
stock
Volume 181
Number 5408
.
.
;
The Commercial and Financial Chronicle
750,000 Shores
Yankee Dundee Mines Limited
(Non-Personal Liability)
COMMON
STOCK
(Par Value—50c
per
Share)
Offering Price: 40f
per
Share
The business of the Company is the exploration for ore de¬
posits containing gold, silver, lead and the exploration for
uranium deposits.
WELLINGTON HUNTER ASSOCIATES
15
ci
Exchange Place, Jersey City 2, N. J.
HEnderson 5-6005
Please
Dundee
send
me
Mines,
•
N.Y.C.
Phone
WOrth
of the Offering
Limited (NPL).
a
copy
.
2-4578
Circular relating to Yankee
1032
20
The Commercial and Financial Chronicle...
The SEC and
change Act, which seek to protect
investors by requiring the
dis¬
Proxy Contests
closure
proxies
Member, Securities and Exchange Commission
•
Says problems of constitutional guaranties
the
enforcing
When
I
rules and lists seven
"misleading statements."
addressed
the
Chicago
Chapter of the American Society
Corporate Secretaries in Janu¬
of
ary
a
year
in
discussed
I
ago,
detail
some
the
program
for revision of
regula-
rules,
and
tions
other corporate business,
in
general seem to be
been
inaugurated in
1953
and
then
was
going
full
forward
steam. I
give
could
you
a
report
the
on
J. Sinclair Armstrong
I
am
in
sure
the
program at
this time, and
would be interested
you
enormous
which
progress
has been made in the revision and
simplification
the
of
regulations,
and
at
the
same
time, in my
opinion, the continued emphasis
on
investor protection under our
regulations under the Securities
The
Commission's
Annual
Re¬
port to the Congress for the fiscal
ended June 30, 1954, has been
released within the last day or so.
year
the
covers
rule
entire
revision
forward
gone
months.
deal
in
of the
scope
program
it has
last
18
as
the
Accordingly, rather than
rule revisions today, I
with
thought it would be pertinent and
of
clarifying nature adopted in
of
ber
comments
by
a
1953
resulting
from
material
staff.
our
The
changes in the shareholder
rule appear to have re¬
proposal
much
moved
the
of
criticism
of
rules
arising out of "repeaters"
and proposals which tend to pro¬
ject
stockholder
opinion
into
our
matters
involving
operations.
ness
ordinary
busi¬
The rules contain
formal
no
arising
of
out
re¬
contests.
handling of the
cases the Commission has gradu¬
ally reached certain results with
proxy
However, in the
certain
types
of problems. Com¬
thinking and Commission
mission
policy
in
the whole subject is still
on
state of evolution.
a
rule
comment
larly
possibility of
circulating for
revisions
relating
to
particu¬
We
con¬
cluded, however, to propose no
changes in the rules and to ob¬
the contest
serve
problem closely
during the present proxy *ea
Last
year,
that
is in
there
proxy season,
the
1954
28 proxy
were
contests
involving
elections
of
timely to discuss one of the im¬
directors
conducted
under
our
portant and most difficult types of
rules. A few of these, such as the
problems that arises under the
New York Central and American
Securities Exchange Act of 1934. I
Woolen
cases,
stimulated wide¬
shall discuss the administration of
spread
interest
and
comment.
Regulation X-14, the proxy rules,
Others, fought with equal vigor
as
it pertains to the complicated
and
frequently with
bitterness,
problems occurring in proxy con¬
attracted
no
widespread
public
tests.
What I
am
about to
say
attention. It is impossible to pre¬
represents by own observation of
the
rules
the
in
manner
which
been
have
context of
dict
the
proxy
administered
hard fought
in
proxy
contests.
We have
come
to that season of
the
ing
the
think
the
its staff with
proxy
the
material for
re¬
use
in
connection with the solicitation of
proxies for shareholders' meetings.
If
past
experience is a useful
guide, the next few months will
be a lively period for us and for
some
of you.
sion's
proxy
rules
tially
overhauled
1952.1
substan¬
were
I
the
fall
of
amendments, clari¬
fying the requirements as to the
disclosure
of
remuneration
and
placing reasonable limitations
the
shareholder proposal
on
rule,
it
fair
to
to
the
rules
most
arises
Commission,
in
of
1954
reviewing
the
with
the staff its program for the fiscal
year
ending
June
30,
cluded that it would make
posal
rules
for
for
season.
revisions
this
of
no
the
more
proxy
to the
effort
one
al¬
side
to
their personal character. I will
have more to say on this
But
I want to
about
rules
before
subject
develop that,
I
begin with
the
few words
a
statutory basis for the
national
on
bv
any
securities
use
of
means
mentality of interstate
of any
securities
or
facility of
exchange
the
or
or
ex¬
mails
instru¬
commerce
any
national
tions
prescribe
proporiate
or
in
as
the
Commission
necessary or ap-
the
public interest
for the protection of investors.
The
Commission
has promulgated
vast majority of
solicitations, those rules under this section, known as
relating to routine elections and Regulation X-14 under the Ex-
Chicago, in., Feb. 9,
1955.
* Securities Exchange Act
4775 (Dec. 11, 1952).
2 Securities
4979
(Feb. 6,
Release
No.
Exchange Act Release No.
1954).
of
of
horizon, this sub-
rally
holders
in
after
or
mal
their
the
holder
j
look
£
oi
of
part to the fact that
involve
large
a
a
a,
,
people who take part
and
aration
number
the
in
distribution
o
pr
p-
of
so-
liciting material and
who
are
more likely to be unfamiliar with
the workings of the proxy rules
is
usually
routine
ter
to
situation
the
elections.
is intended
This
understanding
rules and how they
ministered
Since
late
the
most
the
+o
brief
a
in
to
the
in
making
in
general
in
be
the
tha't
form
gives the
names
for
their
their
and
rarities
tain
d're^tnr"?
positions with
their
business
with
the
com-
ownershin
of the company
details
ex-
compensation
transactions
nanv
inforproxy
and describes their
their
of
a
nominee"?
company,
security
furnished
statement which
perience
directors
of
To aid investors
provide
mation
the
re-
of
judgment, the rules
a
shall
the
ad-
the
election
holders
of
are
directors,
requirerules with re-
of
be helpful.
may
the
contests
proxy
ments of the proxy
snect
of
public interest.
olect'on
sketch
bet-
a
public
proxy
in
discussion
bring about
regarding
of
ru es
rules
reauire
require
d sclose
of
cost
indirprtlv
thp
k
solicitation.
solicitation
proxy
by
the
h^ncSe|wellL0L^^^t\0,l,lS
by the corporation itself,
borne
and
the
erally
include
direct
costs
of
case
the
or
statements
proxy
of
cor
information
soliciting.
Instants
management,
gen¬
as
In
opposed
however,
oi
solicitation,
and
unless
Since
tion
exists,
required
not,
to
if successful, they will seek
reimbursement
from
itself for the
their solicitation.
pany
Beyond
simply
this
require
the
proxy
of
rules
solicitations
misleading s+ate-
omit
nor
com-
expenses
that
must not contain
ments
the
material
facts
necessary to make the statements
made not misleading in the cir-
cumstances.
vide
that
The
rules
misleading
also
pro-
statements
omissions
soliciting
iected
in
previously made in
material must be corsubsequent
Continued
on
material.
page
40
prob-
on
have
there,
an
What arguments did the
man-
agement of Burlington Mills ad-
^nce gainst changing the meet-
counting proxies are good — but
cxc
uu«,
they are equally good at any of
many
would
owners
opportunity to go through
Diant
learn
and
about
more
That it
is in-
^^^^XkTwfdelv
earlier, mat tne stock is widely
held and
no one place, could be
accessible to
all the
and
owners
Wilmington
i*
Wilmington is a central place.
a central
That holders have been repre~
informal rented in person or by proxy at
opportunity for
.
meetings
recent meetings to the extent of
75% of the outstanding stock.
The false security which a mere
counting of proxy votes may give
American
a management is a fatal ^elusion.
New
American
discussion
and
between
management
shareholders,
provided
such
are
as
example at such
as
American
Viscose,
Chicle, Standard Oil of
Jersey, General Motors, L. S.
for
Starrett and U. S. Pipe and Foun-
dry to mention merely
alternative
An
annuai
Mills
meetings
of
would
of
as
to
hold
is the
corpora-
Airways, Continental Can,
Foods, American Standard, Fairchild Camera and Instrument, Fairchild Engine and
Airplane, Kennecott, Lambert,
Merritt-Chapman and Scott NaGeneral
Biscuit,
Foods,
proxies,
Montgomery Ward
always received
proxies—that in
This
American Can, Pan Amer-
Beatrice
always
reproxies, New York
always
receivedj many
agement
a
lean
tional
Woolen
many
be
large
would find it
attend.
ceived
Central
Burlington
course
policy followed by such
tions
few.
a
place
owners
or
for collective discussion
Burlington iviins has us
tfurnngton Mills nas its
Meeting,
Meeting.
to
opposed
for geographical reasons would
normally not be able to attend an
annual session of the shareholders
mg from Delaware?
convenient
whether
Chemi-
<=orparateoI there, that facilities for
cj£y where
state
and
management
is enabled to meet the owners who
cases,
Annual
of
sue-
has
Minerals
both
the
was
location
the
of
are
Commission
In
the question
The first
Mills?
least
contestants
to
ex-
Cal.
..
Now what were our proposals
and
complaints
at
Burlington
possibility of
the corpora-
by
the
management
other small owners.
at
they
the
reimbursement
to
Meetings
m&
independent .is obvious of course that an atProposals had hisenthusiastic tempt at good management-stocksupport, u'st as readily as that of holder relations has J^een.made,
they
their cohorts must bear the
penses
to
the
Stockholders'
tions and does all the things men-.lems of mutual interest.. Where
tioned in the resolutions up he- a large attendance is secured in—
fore the owners, it is not surpris— stead of a handful of owners, it
further
Normally the
circum-
as
allowed
course
ternational
a President of a large listed
corporation itself who had a few
shares in his personal investment
account! Since his corporation
practices good stockholder rela-
one!
or
nfth.
of the
and
General Mills and which is copied
wisely by such companies as Bea¬
trice Foods, Bristol Mills and In-
from
^
rectlv
Z
such
Avco
merely a variant
0f the regional meeting started by
The letters of small stockholders came to me from all over
the United
States and included
one
which actually came to me
their property first hand. Luncheon
facilities
would
provide a
eon
iaciiiues
wouiu
piuviue
a
of the persons who will di-
have
Regional
p0rt#
the
names
t
a"numb^
by
Laughlin,
Corporation,
jj. jg q£
Una. B the annual meeting took
the
tne
es¬
was
corporabons
and
Carrier
were
of
use
that
tnat
jones
rarely recall a case when
letters of sup-
can
which
by Westinghouse which
Xr
j received so many
place
also
statement
proxy
j
City
in the
as
•
.
hal'now been^onied
at the meeting.
Plant at Greensboro, North Caro-
solicitor"?
The
e
-
issues
the
when
me
raised by us
cer-
and
the
>_
se-
with
York
held its annual meeting in
Pittsburgh> Bloomfield, N. J.,Buffa]o_
Y
Ohio and California
:st£dy
case
of
steps
.has:
which will be our
today is Burlington
Mills.
Let us turn to pages five
Seven
and you will find the
reasons
why many of the shareholders of this corporation voted
con-
Board
needed
New
precedent
tablished
D. Gilbert
Lewis
The corporation
in
tests
the
the
Carolina,
This
niff,c°rPoration which held its annual
SL,t
hf meeting just about, a week ago
proxy contests thus may
be
due
that
take
opinion of the management would
a
good attendance by the
tho
in
like
that future annual meetings
between
Greensboro,
owners.
state¬
ment
inde¬
insure
the
proxy
for¬
few
a
shareholders
and such other locations
us
at
to
and
rotated
North
relae
at-
are
provided
see
be
ment-stock¬
be¬
a
to
constitute
good manage¬
and
both
limited
public
Directors
definitely does
rela¬
filing of
fore
to
what
not
statement.
proxy
be-
order
out
and
prepared to bat¬
tle for shareholder rights includ¬
ing a change in locale at the an¬
nual meeting.
Our independent proposal there¬
ration history,
In
city,
officials
myself, who
for
either
favor
therefore
pendent
find
that
management
lawyer
but
these
condition
to
in
tendance of shareholders is natu-
proxy
the
ever
concentration
large
no
importance
than
the
public
utilize
to
media
is
owners
to
public opinion and the opinions of
,tjons
present
and
prospective stock¬
or
*An
address
by Commissioner Armstrong before the Chicago Chapter of the
American Society of Corporate
Securities,
There
ject has great¬
Not
from
hire
to
counsel
other
otherwise
in contravention of such rules and
as
attention
contestants
until
prohibits the solicitation of proxies
with respect to securities
regis¬
difficult.
more
press,
radio and television,
there is a growing tendency
cessful.
tered
as
increasing
of the
general
number
the
on
direc-
on
election of indepen¬
er
taken
are
greater
contests
proxy
a
much
come
general tenor.
Securities
ever
meeting, requirement
company,
statement liberalization, and post-meeting
Stresses advantages of cumulative voting.
What makes good managementrelations?
With
an
as
>
proxy
reports.
stockholder
only have these contests attracted
their
in
steps
as soon
auditors,
company
own
fore in corpo-
14(a)
1934
dent
stock in their
own
corporate officers be-
problems
and
Exchange Act of
tors to
.
of tomorrow
Section
may
current
now
election
an
on
pro¬
In their application
in
proxy
subject one or
individuals to public attack
regulations
proxy
to
the
from the
other
con¬
1955,
of
invariably made by
the
or
applied
as
contest
changes by the
summer
Commission
administration
or
the
I
there
that the
question
say
single
1953,
In
dur¬
but
that
tion of the shareholders' annual
re¬
battle, the
Commission's problems and your
paid
were
adopted in the latter part of
effective in
January and
February 1954.2
period,
assume
difficult
presented
Further
in
think
later.
.
As you will recall the Commis¬
can
contests
Statutory Basis For Proxy Rules
cupied with the preparation, and
the Securities and Exchange Comand
current
we
most
view, of
of
will be several.
the year when the corporate offi¬
cials of listed companies are oc¬
mision
number
with
contest and
proxy
preliminary
pointing to
an
beginning
a
solution.
some
in
contests
effort to make at least
towards
a
than
We considered the
and
in
fore
■
quirements drawn specifically for
the
problems of fair disclosure
formulating
Acts.
It
The amendments
to
reduce
substantially
points of irritation and the num¬
progress
rule revision
the rules
working
the examination of proxy
solicitation
a
a listed security by any
naturally are most easily
applied and understood from the
viewpoint of a
solicitation
by
management, and this is still, ol
course, the most common situation.
But once public announcemerits are made by a participant
served
forms which
had
well.
very
to
person,
of
categories
proxy
-
.
spect to
SEC proxy rules, and
Commission. Explains SEC's method
should be filed with the
of
terms
of the
scope
By LEWIS D. GILBERT*
Minority stockholder spokesman,.. emphasizing the growing importance of good management-stockholder relations cites some
actual cases as showing friction. Discusses question of loca¬
;* The Commission's proxy rules,
although
applicable / in general
and decries advantage taken by
through use of the press and freedom of speech.
Holds publication of preliminary letters, advertisements, and
prepared announcements issued in advance of proxy solicita¬
within
solicited. The informa¬
are
.
are
involved in proxy contests,
are
their
is calculated to enable the average
contestants
tions,
A New Look at ManagementS hare holder Relations
basic
time
the
"prudent" investor to act intelli¬
gently upon each separate matter
with respect to which his vote or
consent is sought..
basis for these rules and the extent of their
statutory
application.
certain
of
at
-
tion prescribed for such disclosure
Mr. Armstrong, in covering his topic of proxy contests under
the Securities and Exchange Commission's proxy rules, reveals
the
them
to
information
SINCLAIR ARMSTRONG*
By
Thursday, March 3, 1955
National
Radio
Dairy,
Corpora-
tion> Union Carbide, P. Lorillard
and Electric Bond and Share,
one Place
meetings do
belong, even if incorporated
•
in.th? state °f Delaware, is Wil-
no
way
is
man-
many
any re-
flection
of
confidence
agement
or
otherwise—return
proxies
duty.
is
a
When
mere
issues
in
man-
.
of
corporation
presented
are
and rival slates
presented, proxies
g0 to all groups and camps.
The
coid
legal
language
management
which
the
defend
to
uses
its
position
is
kind
management-shareholder
of
relations
one
Let
us
in
relations
the
in
could
error
probably
this
the
poorest
matter
which
conceive.
turn
now
to
the
second
management-stockholder
at
minds
of
Burlington
many
ers, who voted
of
Mills
the
in
own¬
last week in sup-
^"pj^tTe're Ind dSffi P^t
n°
of our prooosal. Remember,
7do notSe place there
way'
meetings do not take place there. "by thewhich that many of the
yotes
uphold a
manage-
*An
address
by
Mr.
Gilbert
at
the
"X'u, V955.Schoc1' Cambridge' m*55-
ment
contention
when
Continued
an
inde-
on page
44
wsA^VA'.-s&wsrrWfr>.'Ws**f,/r/M?vw&'*^?rrn*wM-\y,yvrs^K-,/?sr//sws/.'v/.''sw
«'■/..
i'iiii'-^tjuy
';■**/-,>?-,
-
h
WZyf/i
a
?/
'
-
'
<'
y
I
vi
«
•
'--:
Seven in the
family
A
new
nylon for textiles
The luster of chrome
.'
W"'A'
i,
&
"f»:.
'J'.'1
t
-"•
thanks
'
•-•:
•
il
y::
to
•
Genetrons
•
..
'
7,1V
i-r
c.'-.v
u
4 .f-'fi .Uf,::.' "V/U'-.t O'r'*5
n,
\)t- P,iVV,
'•!'
•>;'/
how
are
There's
Each
ALLIE
they
only
one
fundamental
that question:
to
answer
picture
you see portrays some aspect of Allied Chemical.
suggests the
of its products, its plants, and progress made during the year by
integrated divisions with 30,000 employees.
.
.
broad range
seven
The
complete story, of
course,
Our 1954 Annual
Report
developments such
as
'
?
'/
-
>
'
y
i
X
■■
A
I
a
full
covers a
book
—
and does.
Allied
year at
points to
—
some new
—
National Aniline's brand
of Allied Chemical
could fill
center at
Hopewell, Va., for the production
Nylon, Plaskon nylon resins and other new chemicals.
new
100% increase in General Chemical's
output
of Genetrons
—
':
the organic fluorines that make aerosol
The addition of Mutual Chemical
oldest and yet most
Barrett's
Company
modern when it
exceptionally
pure
propellants, refrigerants.
—
comes to
the country's
chrome chemicals.
phenol and its parade of
plastics for other industries.
Hydrogen peroxide, the upcoming product of the Solvay Process Division.
More
Improved A C Polyethylene through Semet-Solvay Division's discoveries.
products—using plastics
Further
expansion at Hopewell, Va., and other locations by Nitrogen
Division—already the world's foremost supplier of fixed nitrogen.
And the
modern
research facilities which
new
every
division with its
own
laboratory and research staff.
AND FINANCIAL
HIGHLIGHTS ?
•
Total sales and other income
•
Net earnings
—
Total expenditures
•
Research & Development
•
Dividends
to
—
new
$4.80
—
a
share
plants and equipment
—
quarterly for 34
$538 million
—
$43 million
•
•
provide
—
$94 million
$15 million
years
—
$3.00
a year
in 1954
approximately 29,000 stockholders
—
*
'•
.
—
There's
If you
—or
more
have
a
an
Allied
interest in Chemicals
company
—write for
The Annual
in the report.
our
that makes them
Report.
Meeting of
Stockholders will be held
Broadway, New York City,
Monday, April 25; 1955
at lp.m. (Daylight Saving Time).
Chemical
All Stockholders
are
cordially invited
Annual
at
61
to
«■
■
attend.
*c.y :*y»t
■
ALLIED
CHEMICAL
&
DYE
61
CORPORATION
Broadway, New York 6, N. Y.
cChemicals Vital To American Progress"
Barrett
General Chemical
National Aniline
Semet-Solvay
0
Mutual Chemical
Nitrogen
.
Solvay Process
'
in
<
\
The Commercial and Financial Chronicle
1034
22
"Oppoilunity Unlimited"
By W. RANDOLPH BURGESS*
Prominent
official,
Treasury
calling
in
attention
-
Eisenhower Administration's aim to maintain
need for both adequate national defense
on v/hich the people of the country
can
rely. Lays down as principles for achieving and main¬
taining sound money: (1) a budget under control; (2) a cen¬
tral banking system dedicated to give sound guidance to mone¬
tary policies, and (3) the management of the public debt in
the interest of monetary stability.
prise system,
on
sees
NEW
litical
that
the
can
Administra¬
the
responsible financial
tion's
so
people
American
continued
have
blocked
be
must
move
on
a
opportunity unlimited—
politics, in religion, and in
dom,
in
allied
An
man¬
economics.
applica¬
tion
of
this
principle in
af-
economic
fairs
was
by
stated
Abraham
when
Lincoln
he
"The
said,
legitimate ob¬
ject of
gov¬
ernment, is to
do for
of
munity
We
R.
all,
at
or
cannot, so well do, for themselves
their separate, and individ¬
ual
capacities.
In all that the
—in
marathon
a
our
race.
growth of the
which underlies
economy
basic
every
military program.
do
To
that
of
fruits
it
We
research.
new
are
making progress, for our military
pr'ength is today greater than
before
and
people can individually do as well
for themselves, government ought
while,
at the same time, we are spend¬
ing less money on it." Even so, it
constitutes a
large part of our
not to interfere."
Federal
philosophy, the fu¬
country, like
the
this
Under
of
ture
our
past, lies not in what the govern¬
may do for the people but
in the initiative, the resourceful¬
ment
ever
like
of
which
taxes,
desirable to encourage vig¬
economic
orous
the courage and tenacity of
160 million Americans, each free
progress.
ness,
his
he
best
how
choose
to
mote
of others.
tive
in
of
power
efforts
has
the
so
long
not interfere with the
he does
rights
the
and
interest of his loved ones,
as
The accumula¬
these individual
made
America
great
and promises even
achievements in the fu¬
past
greater
Sound,
pro¬
can
interest
own
ture.
Honest
defense,
Money
great ob¬
our
jective is sound, honest money on
which the people of the country
can rely, in which they may have
confidence.
that
vinced
In
other countries, despotism,
operation of these principles.
raany
are
we
sound
con¬
is
money
an
away
in
try,
philosophies
strange
work
our own coun¬
is a basic essen¬
tial for keeping the country's eco¬
at
are
the
exalt
would
which
and expand the functions
powers
the
reduce
and
government
opportunity of the individual. It
is
the
firm
philosophy of the
present Administration that our
hope for the future lies in a re¬
turn
to, and accentuation of, the
principles
of
opportunity
un¬
limited.
If
:
we
and
direct
There
is
quality in
sound,
honest
money.
Money
which
fluctuates
violently
in
value is a thief, for it robs the
person
who saves his money, it
lucky
which
the
the
to
speculator
which
jump
Sound
must
the
or
in
the
line
in
political
and down
aspect of
economic life.
our
every
and
As
United
SStates
Treasury, I want to tell
you briefly and simply what we
are
trying to do in the field of
finance to carry out these great
principles of government.
representative
a
of
the
The
ment
for
defense.
the
financing
the
require¬
huge funds for national
If
America
to
pursue
policy of opportunity
must
we
today,
price.
peace
have
•
powerful
the
a
is
and,
peace,
only
comes
That price
and
is
money
been
and
years
of
at
a
the building
maintenance
of
defense force that
so
the
free
will dare attack
nations
with
us
whom
or
no
we
the
are
*Excerpts
from
remarks
by
Sec'y
Burgess at the Joint Conference of Group
V Savings Banks Association and Real
Estate and Building Industries, Brooklyn,
ft. Y., Feb. 25, 1955.
in
for
synonym
a
have been
stimulated.
In
new.
They
have
history.
Because
technicalities
it
is
made
three
people of sound money.
-two
years
tion
of
cost of
As econ¬
American
the
of Labor put it
cording
to
ac¬
the
front in
wage
year'
of
1954
hour had
an
than
been
modest
by comparison with the increases
previous
wage
his
of
benefitenvelope.s In
got the
fatter
pay
full
let
Again
principles
me
very
these
They
new.
are
established
the
at
founding of the republic by
Alexander
be
we
Hamilton
sought
tion
for
them
seek
for
the
a
firm
growth
America,
new
the
founda¬
of
The
mambers
from
naw
Baker,
the
will
National
New
as
demonstrated
over
many
both
30
of
principles
First,
a
budget
are:
that Robert A.
associated
ager
with the firm
as
capital
land
a
St.
sued
company.
with
private
Prior
to
that,
he
the
one
New
The
itures
great
two years, we have
progress
in
these
and
of
a
in
19
of
also
It
First
of
operates
the
57
countries.
make
wil
the
available
Na.ional
Bank
to
not
extensive foreign banking fa¬
but also larger loan limits and
banking services generally.
The
broader
institution will be be..ter able to
growing needs of American busi¬
and overseas, and to keep
enlarged
the
ness,
at
home
with
pace
expansion of tne American
will strengthen the leader¬
the
It
economy.
ship of New York City
try's
banking
centers.
pected, to
and
two
of
join
banks
perso'~ml of the First National
and
the
National
City Bank will
in
maintaining
the
high
tiadition
banks."
nt
*!»
*«•
regular
a
meeting
of
the
Board of Directors of The National
City
of
Bank
New
York,
held
March 1, Charles R. Dodson, Rod¬
Federal
Broadway,
nounce
New
that
Wheeler
were
ap¬
Vice-Presidents
Robert Rice was appointed an
Assistant
120
Engineer, Is
City,
an¬
Petroleum
Powell
and
York
Vincent
Clemence
Inc.,
are
now
asso¬
Bank's
budget of expend¬
been
reduced
by
$15
department.
trading
with
Department
of
Industries
ihe
ihe
Group
—Domestic Division; Mr. Hatcher,
formerly
ciated with the firm in the
tries Group.
an
official
don Office of the
signed
to
the
*■
*
#
The
of
directors
of
boards
Company and The
Bankers Trust
and
Trust
Company of New Yo k, at
meet¬
Public
ings
Bank
National
formally
23,
Feb.
on
ap¬
proposed
plan
of
the
merger, and voted to submit the
proved
the stockholders of both
institutions,
it
was
announced
Feb. 24.
The plan - calls for the
exchange of one and one-eighth
plan to
shares
Com¬
Trust
Bankers
of
for each share of the Public
pany
National
stockholders
called
been
of
meetings
both
of
the
have
banks
March 24
for
Com¬
Trust
and
Bank
Special
pany.
the merger.
on
to vote
Announcement of
proposed merger of the Pub¬
Co. with the
the
lic National & Trust
Bankers
the
in
Trust
$
of
Bank
the
property of
Life
Com¬
Insurance
which occupies most of the
pany,
block
bounded
William
erty,
in
936.
page
purchased
office
home
Mutual
24,
National
has
York
former
appeared
*
*
Chase
The
New
the
latter
issue of Feb.
our
under
Company,
the
of
name
York
New
which
Cedar Streets
City. The contract,
formally
was
Lib¬
Nassau,
by
and
closed
on
Feb. 23,
will involve the payment
of
$4,425,000
to
the Guaranty
Trust
Company, which had ac¬
quired
in February,
is immedi¬
the properly
The
1952.
property
wnich
is
Bank.
National
Chase
parcels of
all but two
owns
office
head
the
located
the
of
this
block,
erty,
bank announced, is a
ihe long-term relocation
building program, as yet un¬
bounded by
Nassau, Cedar, William and Pine
Streets.
Acquisition of the prop¬
which is
the
of
part
and
connection with the
in
resolved,
proposed Chase-Bank of Manhat¬
tan
merger.
$
Colonial
New
Trust
York
of
Company
which
of
S.
Arthur
Kleeman
is
Feb. 25
the record date for de¬
as
has
President,
set,
termining shareholders who will
be entitled
to
subscribe to
million issue of
$1
according to
the
bank
date
17.
announcement by
24.
Expiration
an
Feb.
on
the
of
offer
Each present
have
$50,
the
new
a
capital stock,
right
will
be
March
shareholder will
to purchase for
of the 20,000 new shares
for each two shares he presently
one
holds.
The
approved
new
by
stock
issue
shareholders
was
at
a
special meeting Feb. 14. At pres¬
ent, the bank has 40,000 shares
outstanding. Items regarding the
proposed increase in capital ap¬
peared in our issue of Feb. 10,
pages 712 and 737.
♦
William
H.
*
*
Hill,
Jr.,
a
Vice-
President of Manufacturers Trust
Company, of New York, has been
ascsigned to the Branch Adminis¬
associated
Soecial
is
Rice
Mr.
the Transportation
Department of the Special Indus¬
to
N. Hatcher, Lucius H. Tippett
Warren
Bank's
the
of
Division.
Overseas
can
earning power
the
both
At
It
potential for growih than
could
develop sepirat^y.
greater
a
the
the coun¬
be
ex¬
among
greater
develop a
is assigned
District
European
banking
of bills
large segment
foreign
merger
formerly As¬
to the
Wheeler,
Cashier
assigned
saving, for
and for per¬
Mr. Dodson, formerly Petroleum
Securities,
Mr.
sistant
for
more
and
Eastern
and
spe¬
personal
facilities
population.
pointed
Edwin
fields.
has
has
110
Assistant Cashier.
management of the
in the interest of
In the past
three
T *e
in
has
payment
loans,
cilities,
of
Both
banks.
however,
Bank,
and
business
of
customers
All
w.iooe
large
corpo.«,ta
branches.
The
City Bank operates 71 branches
Yo-k, which supply the require¬
National
only
bring
banks
correspondent
particularly
relationships
in
will
Bank
two
general banking and fidu¬
to business
and personal
services
cialized
Bank
largely cony.levnenta y.
clients ; and to
First
National
Is¬
Smith, Barney & Co.,
monetary stability.
made
institution
ara
banks ^-supply
ciary
National
City
National
activities
Bank
buying department.
District
of
the
Overseas Division at Head Office
ately to the north of the block in
First
the
of
with
associated
be
Caribbean
Chase
into
ney
debt
.
with
was
had
capital
$713,000,000 and
$143,000,000.
"Merger
and
the
of
Sheperd and Mr. Nagle is¬
the
following joint state¬
branches
investment
capital
ment
control;
Third,
of
Mr.
total
and
trust
Bank had deposits of $556,000,000,
-
Co.,
become
affiliate.
City
Trust Company).
The First
resources
funds
man¬
Vincents
rati¬
(including $32,000,000
its
of
Farmers
total
University and the Harvard
with
will
merger
$6,323,000,000
funds
city's
central
a
of
funds of $585,000,000
Mr. Brauns, a graduate of Har¬
associated
Much
If
year-end the National City Bank
deposits of $5,639,010,000, total re¬
had
now
previously
plan.
of
the
sources
of the syndicate department.
School,
for
called
be
the, Currency, the
immediately.
At
American
W. Brauns is
First
in First
shareholders
merger
will
the
effective
banking sys¬
tem dedicated to give sound guid¬
ance to monetary
policies; and,
Second,
will
the
on
Brancn,
Mr.
of
title
same
the
of
Mr.
Tippett,
formerly
of the Bank's Havana
Chairman of
and
Grant
as
two-thirds of
the shareholders,
the approval of the Comptroller
upoi
meet
in the
under
vote
by
and
members of
and
p
Vice-President
hold the
institutions
to
fied
Exchanges, have announced
been
years.
These
York
will
of National City
present positions.
meetings
"The
Stock
of the
members
All
City.
Special
McDonnell & Go.
Co.,
board
Manager
Office;
Na¬
National.
will be:
First
Commi.te,
Executive
National,
R. A. W. Braars Wil
&
First
Percy Cluibb, 2nd,
Alexander C. Naale,
the gro
Executive
sonal
to
main
join
convenient
Business
time, the football of the
unprincipled politician or vision¬
ary crank.
But the principles re¬
their
i.i
Keehn,
ot
o/s
t.:e
Jr.,
management
will
quote:
of
of
Moore, Jr.,
Stollc.
continue
also
we
Board
the
S.
Nagle
by
From
ec
F.
senior
York,
charter.
William C.
and
National
will
members
needs,, including
McDonnell
di
of
Bank
ba 25, including 20
National
City's-Bo?rd and
of
five
ments
unlimited.
understand,
from
numb°r
Citv
New
its
City Bank
The
ever
an
opportunity
for
of
of
announcement
tional
carried
and
themselves, but
as
Bank
amendment
tne
merger,
First
The
become
City
the
National
the
of
will
Ameri--
great
consists
which
City,
reflect
To
000.
National
effect
traditions
can
up
No change
capital stock
10,000,000
Bank
that
say
not
are
into
gobbled
300,000
shares of $20 par
value, a total of $200,030,000, or
in its surplus, which is $300,000,-
Last year the
years.
earner
vard
become,
the
in the
made
Edward
fared
in
any other postwar year.
Higher
hourly wages and stable living
costs
had
given most
workers
their
greatest
postwar
gain in1
purchasing power. This was true
even though the average pay rise
in
be
George
had
workers
the
Federa¬
recently,
reports:
press
"Unionized
of 5-9c
of
the
now,
living has been stable.
omists
have
we
unspectacular,
assuring
the
toward
American
For
ways,
if
steady,
progress
difficult for the average person to
they
cap.tal stock, a total
National
of
many
circumstances
many
for
Overseas Division at Head
of the
First
share in
per
of
name
these
the
achieving sound
proved over
world's
involve
they
public
enemy
not
are
tried and
unlim¬
ited,
up
in
road-block
government. is
our
is
money
The methods of
time
National Defense
sales of Savings Bonds
value.
justice and integrity.
up
ple.
who happens to hold
person
assets
have made the country great, we
apply them all
in the hands of the peo¬
The average maturity of the
has
been
lengthened; the
the
the
of
shaxehoiders
the
will
widely
of
Under the merger plan
the National City Bank will pay
robs the
people who live on fixed
incomes, and it gives an unjust
Comptroller
the
objective of gradually spreading it
out in time and placing it more
to
moral
a
of
bank
Currency.
its
controls.
fruits of their labor.
and
merge
agreed
each
of
shareholders
$165,000,000 for
shares
ou.standing.
.
saver
the
to
been
had
cash
great
avoid
to
plan
a
banks
public debt of $278
billion is being managed with the
The
It forward
by
great
men
of all
inflation. parties in the proud history of
deflation,
which
rob
the the country. These principles of
and the enterpriser of the sound
money are not
something
main¬
in
principles
these
of
mass
necessary
reward
succeed
to
are
taining
a
with¬
keel
even
that
1,
two
the
growth.
and
de¬
Sound money
an
the
of
City of New York, announced on
Bank $550
putting
on
of
President
Bank
National
First
National
gains."
life
the
Nagle,
C.
exander
to
of his
who
country.
is
carry
rected
much
the
for
individuals
of
City Bank of New York, and Al¬
people, monetary policies di¬
toward economic stability
ican
vigor of the enterprise-of the
basis
millions
out
taken
to
out, in the interests of the Amer¬
inflation
ple,
has
allowed
and
years
nomic
dom, and, even
been
terference
other
which professes to serve
the peo¬
their free¬
has
initiative
essential
and
For
termine economic progress in this
granted the
We cannot take for
of
to
Next
Federal Reserve
rapidly as we would: better on
budget and fur¬ 'recession
as
reductions
so
organization,
freed from political in¬
the
prevents our
balanced
a
ther
are
growing,
budget and
achieving
National
The
or
upon by the respective boards of
directors, subject to approval of
system,
banking
central
Our
is
modern,
takes advantage of all the
that
waste,
Chairman
Sheperd,
Board
March
debt
this, we must make sure
military machine is free
our
that it
do,
cannot
but
done,
of
or
dynamic
they
have
past
conceive
1956 but for a long
period in the future. That means
maintaining a pace which can be
sustained without impairing the
1955
just
from
to
the
Our
military strength must be not for
haps, even
what-
need
in
program as a 100-yard dash.
It
is more like the mile run, or per¬
evei
Burgess
military
few years.
of
concept
longer
no
people,
W.
maintain
to
peace.
our
strength
com-
a
in
the
has been so bene¬
ficial for all during the past two
important change has taken
place
C.
Howard
of
years.
efforts
our
world's
the
of
The
in
Bankers
and
ETC.
CAPITALIZATIONS
deliber¬
would
ately increase deficit financing—
with all its inflationary dangers.
This
BRANCHES
OFFICERS,
REVISED
This strictly po¬
maneuver
agement which
greatness is founded
great idea—the icea of free¬
CONSOLIDATIONS
NEW
current
have mentioned.
and sound honest money
America's
News About Banks
proposal for a $20
tax cut is the type of thing which
violates
the
basic
principles I
The
free enter¬
cur
time, the bur¬
the American
same
taxes
billion.
the
to
re¬
people has been reduced by $7V2
Monetary Affairs
Under Secretary of the Treasury for
At the
of
den
been
$9V2 to about $3 bil¬
from
lion.
j
deficit has
The
billion.
duced
Thursday, March 3, 1955
...
in
the
Bank, is
European
Lon-^
now as¬
District
tration
Department
and
will
supervise 23 of the bank's 37 of¬
fices
in
Manhattan,
Flanigan, President
Company announced
Mr.
Hill
Horace
C.
of the
on
Trust
Feb. 23.
formerly officer-lncharge of the Union Square Of¬
fice, 221 Fourth Avenue at 18th
was
Volume 181
Number 5408.
.
The Commercial and Financial Chronicle
.
23
1035
Street.
1931
He
and
joined
the
in
Paterson,
two
First
Vice-
Pompton
Lakes
Company of Paterson.
bank
appointed
was
a
President in 1952.
The
appointment of William J.
Mpguire
as
Vice-
Assistant
an
in Clifton,, one in
and one in the
Borough of Totowa. A joint an¬
nouncement
by F, Raymond
Peterson,
President of Manufacturers Trust
tional
Company
of Paterson,
announced by Pres¬
was
ident
Flanigan, on Feb. 26. Mr.
Maguire is assigned to the Branch
Administration
Department with
headquarters in the Main Office,
55 Broad
Bank
and
Trust
Na¬
Company
and Oscar T. Storch,
President, First National Bank of
Bloomingdale, stated in part:
"The merits of merging our two
institutions have
been
seriously
considered
Street, New York.
First
Chairman,
by our respective
If
consum¬
An increase in the capital of the
First
National * Bank
&
Trust
mated under the present
plan, the
Company
purchase of the assets of the First
National Bank of Bloomingdale
*
*
of
New
from
$2,205,000
made
known
become
of
$294,000,
of
increase
Jan.
enlarged
and
the
The
as
a
sale
of
of
merger
*
*
Stillman,
First
and'
Trust
All offices
National
Bank
of
Bloomingdale would be continued
in
operation.
Oscar
T.
Storch
would
become
President
of
and
Trust
and
all
Executive
First
National
enclosing official notice of
a
cial meeting to be held
March
officers
and
on
*
*
of
result of
a
i;i
$200,000' the
mem¬
Boardwalk
tional
increased
would
continue
Bloomingdale
their
in
present
Feb.
16,
its
capital,
from
"The
to
$1,-
*
the
Comptroller
of
-
The
First
of
Wayne
Na¬
Fort Wayne,
Ind.,
$1,250,000 to $1,750,000, ef¬
of
18)
S10,OOO,OCO;
stock dividend
The
of
*
First
a
Feb.
17,
$5,000,000 by
#
National
by
First National Bank
and
Company of Paterson,
and
the
Trust
the assumption
of the liability of
the First National Bank of Bloom¬
to
its
depositors
by
the
the
Currency, both boards of di¬
rectors and
the
is being submitted
shareholders
tional
Bank
Letters
of
of
addressed
F irst
to
Na¬
Bloomingdale.
to shareholders
Bank
&
Trust
Company
of
Winona, Minn.,
Lafayette, Ind., increased its capi¬
of
tal
000
000
effective
to
stock
Jan.
$625,000
dividend
18, from $500,-
as
of
a
result of
a
$125,000.
of
now
has
of
Bank
previously,
a
its present figure on Jan. 19.
Newark,
National
of
also
Lincoln
of
day
that
that
Bank*
city, announced that
arrangement
had
been effected, subject to
approval
an
by the board of directors of Na¬
tional
State
of
of
the
tion
the
and
Lincoln
shareholders
the
and
Comptroller
Currency, for the acquisi¬
by
National
State
of
the
-
property and assets of Lincoln at
approximately
There
stock
$74
outstanding.
from
share.
per
30,000 shares of Lincoln
are
which
The
paper
quote went
we
to
on
in part:
say
Mr.
Withers stated that the
rangement
by
the
has
been
board
Lincoln.
of
When
ar¬
approved
directors
the
of
other
re¬
quired
approvals
are
obtained,
National
S;tate will operate as
branches
the
offices
presently
by Lincoln and will as¬
operated
the
sume
other
latter's
deposit
.
obligations
and
and
Lincoln
will be liquidated.
'
The
announcement
firmed
a
V'Newark
that
a
tion
of
after
the
of the two institu¬
imminent.-
was
the
story
too
a
con¬
yesterday's
which reported
News,"
merger
tions
today
in
s.ory
Confirma¬
24
came
executive
of
hours
under
negotiations
but no details
way
of
one
banks said
were
had
been worked out.
The bid
-
price for Lincoln stock
was
$54.50
and
rose
stock
share
per
today
yesterday
$68, -but no
to
offered
was
for
sale
at
either price.
Lincoln reported a
book value of $61.19 at the end of
1954.
*
'
NO OBSTACLE TOO -GREAT
but
the
Signal Corps
men
time in a new military communications system combining land lines and radio.
Map shows how radio is used to jump across a swamp and a deep ravine, both difficult to cross" quickly by land line.
As of Jan. 1, 'Lincoln had de¬
posits of $48,360,354 and assets
of $54,537,241. Both totals
dropped
slightly from the 1953 figures,
.
$7.62
bank
reported profits of
share for 1S54, $2.02
per
above the 1953 profit per share.
Absorption of
tional
State
tional
State's
sion
&
begun in
Newark
former
Na¬
Na¬
of expan¬
Other major
1949.
in
the
the
were
by
continue
program
acquisitions
then
Lincoln
would
period
former
Trust
Orange
The Bell
National
System
now
a telephone
needed. When
the stringing of wire, it takes to the
is producing for the military
system that will go anywhere communications are
The
transaction
Lincoln
'with
Forces
the
and
First
Bank.
-
for the Armed
since
Merchants
Co.
its
would
history
a
ma:n
of
for
end
30
years,
office
always
Broad and Kinney Streets.
#
*
water
or
rough terrain prevents
air.
Thus vital contact
they
may
at
for
our
Armed Forces—no matter where
he located-^is assured.
*
When
Preliminary agreements look'ng
toward
a
merger
tional
Bank
N.
with
J.,
Bank
Feb\
Bank
J.,
of
directors
First
Blcomingdale
oi
revealed
were
The
Signal Corps linemen encounter geographical obstacles,
easily erect a portable antenna. - This connects land
lines by radio links; which leapfrog the trouble area.
they
National
has
This
rugged communications system was developed for the
Signal Corps by the Bell Telephone Laboratories. It has a
1000-mile range and can carry as many as 12 voices at cnce.
U. S.
four
offices
throughout upper Passaic
County, in Bloomingdale, Moun¬
tain
View,
Wanaque,
West
and
now can
National
Company
meeting
a
23.
of
Bloomingdale,
First
Trust
N,
following
on
of
the
and
Paterson,
of the First Na¬
Milford,
another
to
and
be
Uninterrupted flow of information is an important tactical
for today's Armed Forces. The Bell System works closely
the nation's military forces in developing and providing the
weapon
with
most
complete and modern communications in the world.
opened shortly at Berdan Avenue
and Paterson Hamb
rg Turnpike.
The
Trust
a
First
National
Company
total
of
12
of
Bank
Paterson
offices;
eight
and
has
in
oi
AMPLIFIERS like this
can
be used
on
a
pole or the
ground and even will work under water. Although the
system is lighter and more portable than any used
previously, transmission quality is unusually good.
BELL TELEPHONE
SYSTEM
capital
stock dividend
Withers, Presi¬
dent
a
$100,000 having increased it
the
N. J., and Garl K.
Bank
$350,000 compared with $250,-
W.
of
of
having
$5,000,000.
Newark
of
now
capital
amoun*
been increased from
National
National
has
the
❖
Merchants
*
Minneapolis, Minn.,
of Jan.
(as
*
Northwestern
*
plan has the preliminary
approval, of
Bank
a
*
would be effected by the
$1,300,000
effective
500,000.
positions.
Fort
*
The
Na¬
tional Bank of Atlantic
City, N. J.,
of
of $500,000
increasing the
in
the
dividend
bers of the staff of the First Na¬
Bank
of
fective Feb. 7.
stock
a
dividend
resulted
capital
from
Bank
As
stock
has
tional Bank
Friday of this week."
Vice-
A
spe¬
30, will be placed in the mail
Company of Paterson,
other
on
*
the
President
State
directors.
toe
Bank
.
ingdale
According
to
"Evening News"
National
of
$1,000
stock.
new
Paul
28.
both
dividend
stock
a
Conn.,
$2,500,000 is
having
to
the
was
result
Haven,
effective
capital
boards
*
of
.National
to
The Commercial and Financial Chronicle...
1036
24
Thursday, March 3, 1955
Merrill Lynch Group
Public
Underwrite Offering
Maryland Casualty Co., Balti¬
more, Md., is offering its common
stockholders of record
Feb.. 24,
rights to subscribe at $40 per
to
an
additional
296,050
common shares on the basis of one
additional
share
for
each
six
Utility Securities
By OWEN ELY
Gas & Electric Company
Kansas
1955
Pre-Tax Profit Margins: 1954 vs.
Two
this
weeks
the
column
ratios of
we
number of major Class
a
I carriers for 1954 and 1953,
show-
between the
two years.
We showed the 1954
ratio of Delaware, Lackawanna &
the
ing
changes
Western
the
43.8%
as
1954
among
—
the five lowest on
the list. Erie, incidentally, showed
considerable relative deterioration from 1953 while Central and
Pennsylvania were merely adhering to their general patterns of
&
Actually,
Chicago
Western—46.5%.
Lackwanna's
ratio
of
Erie
roads
the
for
that
was
that
and stated
ratio
highest
covered
North
as
transportation
47.5%, the highest for
the group covered in the table. ( ; recent years.
While the transportation ratio; 0
As was to be expected, the Class
which measures the relative cost
I carriers as a whole and most
was
'
of
moving and handling
traffic, is of primary import-
actually
the
it is not the only determioperating profits of the
individual road.
There are, also,
ance,
of
nant
maintenance outlays, traffic
itation
costs,
and
credits
of
net
general
solic-
expenses,
debits for hire
or
and joint facility
The overall impact of these
equipment
rents.
of
measured
is
costs
gross
road
net
is
by the percent
that the railthrough to
revenues
able
to
carry
operating income before FedIn the
income taxes.
eral
accom-
show this
so-called
"Pre
Tax
Margin
of
Profit" for 42 of the major Class
panying tabulation
we
-
I
carriers, and for the Class I caras a whole, for the years 1954
riers
and
in
ed
The
1953.
1954
railroads
descending
profit
Class I
order
margins,
carriers
as
a
their
whole listed
in their proper relationship.
This
tabulation again demonstrates the fallacy of
presenting
together
as
single investment
one
problem.
all the way
year ran
35.9%
profit
individual
The
margins last
from
grouping all
securities
raProad
for
Virginian to a
Chicago
&
North
Western.
All
told, there
were 14 roads with profit margins
running below
10%
and eight
nominal
with
0.4%
for
above
margins
20%.
is
It
on
the list with respect to
roads
last
year
were
expire at 3:30 p.m. (EST)
10, 1955.
An under¬
writing group headed by Merrill
March
on
Beane
&
Fenner
Pierce,
Lynch,
required for the
redemption will
amount
stock
gregate
preferred
be
$11,170,392.
Maryland Casualty Co. is one of
the oldest and largest multipleline stock casualty insurance and
surety companies in the United
States.
addition
In
writing
risks, the
is engaged in the invest¬
company
ment
reinvestment
and
funds,
the underr
to
insurance
of
which
from
its
of
derives
it
a
substantial income.
is
licensed
states
to
do
the
of
The company
business in all
United
States, the
Columbia, Alaska, Ha¬
waii, Puerto Rico, the Canal Zone,
the Virgin Islands, the Republics
District of
of Cuba and Panama and all pro¬
vinces of the Dominion of Canada,
except Prince
Edward
"
i,v
1954
35.9%
Virginian
-Kansas
City
29.5
Southern
Bankers Offer May
nAM| OlA|IAfk
I. Stores UcDGfili
uepi. Oiores Deben.
Goldman, Sachs & Co. and Leh¬
Brothers
man
March
on
headed
1
March
1,
debentures,
due
at 100% arid ac¬
1980,
interest.
crued
Net
sale
of
the
debentures
will
from
be
added
to
the
company's
general
funds
to
proceeds
be available for
the
general corporate
and
improvements to its facilities.
clude
Projects under construction in¬
three
branch
St.
26.4
26.9
of
24.1
27.2
Denver—which
33.1
24.3
open
20.6
20.0
24.0
23.1
to
19.6
21.1
Pittsburgh
Atchison, Topeka & Santa Fe
Chicago Great Western
17.9
17.2
22.0
19.3
and will open
Texac
16.9
21.8
Western
-
Western Maryland
'
21.8
21.1
Southern
Railway
Now York, Chicago & St. Louis________—
Chesapeake & Ohio
Seaboard
&
Air
Line
:
Pacific
■
Chicago, Burlington & Quincy
15.6
Nashville
14.8
Ohio
during
A
department
suburban
Los
areas
Angeles
the
and
scheduled
are
coming
to
summer
10-story addition
the compahy's Kaufmann's De¬
The
new
Store
is
in
downtown
almost
in May.
debentures
completed
sinking fund requiring retirement
of
3%
lv
begininne
of the
K
debentures
1959
annual-
4%
and
hP*nn-
9 and 4% begm
Western Pacific
14.2
24.8
0.
Great Northern
14.1
17.9
w se than through
crperation1 of the sinking fund at
13.9
13.5
Reading Company
13.1
The debentures will be redeem,
...
13.1
^
Chicago, Rock Island & Pacific
St. Louis-San
Francisco
12.8
18.2
■
•
Class
I
11.8
Railroads.
Missouri
11.7
Pacific
Wabash
15.4
-
.
9.9
'
^
its
subsidiaries
operate 27
department stores, 10 of which are
main downtown stores and the
11.0
17.1
mainder
10.9
11.2
main
Northern
10.0
' 12.8
Missouri-Kansas-Texas
9.7
15.8
Southern Pacific
9.2
13.9
Chicago & Eastern Illinois
8.8
Pacific
Baltimore
&
Ohio
11.9
7.7
Minneapolis, St. Paul & Sault Ste. Marie__
Louis,
6.0
7.2
located
10
in
St.
Los
Angeles,- Pittsburgh,
stores), Akron,
Baltimore, Youngstown
Cleveland
and
The
stores.
are
re¬
Sioux
(two
3.5
Central Railroad of New Jersey
7.0
8.3
Delaware, Lackawanna & Western
6.8
14.3
Form
Equity Investing
vestment
Corp.
has
been
Erie
6.6
'
to
nue
conduct
securities
a
busi¬
5.8
14.0
5.8
—
Pennsylvania
8.2
Chicago, Milwaukee, St. Paul & Pacific—
New York
"
1
Central
4.9
Chicago •& North-Western_^_LL_l^-ij.ijli>^
0.4
-
.
*.
i
-
as
the U. S. average
and
from oil companies, it is
interesting to note that petroleum
during 1951-53 in the percentage
increase
in
manufacturing em-
revenues
ployment.
reserves
The
itself has shown
company
rapid
1954
growth:
of
revenues
today
twice
are
as
large
in 1947. This results from both
as
the discovery of new fields, and
the development of new productive methods which tremendousin 1945, and the peak load nearlyJly increase the recovery from old
three
times
as
big.
Generating fields.
•;
capacity was about three-and-aThe company has no regulatory
half times that of 10 years previ- problems. There has never been
ous, while the electric power in- a
general rate increase in the
$25
million
dustry
as
times
whole
a
about
were
large
as
as
its
increased
ml
107%.
company's
The
rapid growth
was
accentuated
in
were
cial
industrial
and
gains were
as those of
New capability of 150,-
twice
about
the U. S.
KW
000
large
as
last
installed
was
company's history, and residential
average about the same as
the rates in the larger cities of
rates
the TVA
and
115,000 KW is scheduled for
operation in the spring of 1956.
Plant
capability
now
approximates
370,000 KW as compared
area
for the full-use
Kansas
tomer.
fair ' value
is
regarded
cus¬
a
as
state.
However, last
year
the company earned .only
about 5.9%
on
an
original cost
rate base.
Much
year
the
of
with
tage
company's advan¬
to
respect
earnings is
the favorable fuel situation. The company burns natural
gas (now costing about 18c per
with
last
year's peak
load
of mcf) but could easily shift to oil
slightly under 300,000 KW, indi- if desired. -A small amount of coal
eating ample reserves.
is also burned.
Share
shown a
consistent upward trend from the
$1.63 reported in 1944 to the $4
earnings
The dividend rate
earned in 1954.
increased
was
during the.
have
from
63c
to
$2.40
period. (The rate
same
due to
,
The equity ratio is currently
around 29% but will drop to 25%
after
current
However, the
do
some
senior
financing.
expects to
company
equity
financing
next
(probably. 125,000 shares of
year
third
common) and^hy the end of 1957
from
$2 to
Another interesting point
the equity ratio should be around
30%.
increased
last
$2.40.)
is. that
the
20%
in
the
year,
percentage
of
The
gross
stock
common
has
been
which the company has selling recently over-the-counter
revenues
around
price
last
has
year)
the
exceeded
consistently
industry
56
to
yield 4.3%.
This
about 14 times
represents
average
earnings, which is well below the
average for the industry.
The
Despite competition with cheap
gas in the area the com-
management is expected to give
future consideration to a stock
split and may also decide to ask
for listing on a national exchange,
but no timing is mentioned,
around 14'
natural
sive
to
maintained an aggrescampaign with respect
electric ranges, launautomatic washers, dryers
has
pany
sales
sales
dries,
of
.With Dempsey-Tegeler
and ironers. It has had
tial
amount,
of
*
a substancommercial
air
conditioning for some time but the
last two years have given a great
impetus to residential air condi¬
tioning. This has aroused interest
in
the
pany
heat
pump,
and the
com¬
is planning several trial in¬
(Special to The Financial Chronicle)
;
major appliances, and the addi¬
tional wiring required for room
c°n^^jon®rf,,°^ 240 volts also
the bottleneck" encountbottleneck
encount
breaks
ered in the sale of electric ranges,
.
-
•
LOS ANGELES, Calif.—Francis
J.
Mitchell, has become
with
connected
Dempsey-Tegeler & Co., 210
.West Seventh Street. Mr. Mitchell
previously
was
Hammill &
stallations.
2,384, which compares
favorably with the national aver¬
age of 2.540 considering the avail-
Roger Hayes Opens
BUFFALO, N. Y.
Hayes is conducting
8.1
business
.:4.1-
much
as
units,
conditioning
,
with
Shearson,
Co., and Lester, Ryons
,
•.
Hutchinson Sees.
BROOKLYN, N. Y.
Opens
Hutchin-
—
son Securities
Inc. is engaging
.-x..
" •
*
...
in a securities business from offi¬
ces
at
1118 East 9th Street.
reached
6.1
5.7
,
^
times
air
etc. Average residential sales have
14.4
/
ers,
magnesium and other light metal
castings. As the company gets a
considerable part of its industrial
agriculture, and the 10 with the
rapidly growing per capita
income.
Kansas
gained
three
formed
xiri+v,
koo
j
a.._
with offices at 588 t\t—+
Nostrand Ave¬
ness.
Lehigh Valley
in
Acceptance of air conditioning
helps promote the use of other
BROOKLYN. N. Y.—Equity In-
revenues
gained 146%. In addition to- the
establishment of new industriesmost of the existing industries
expanded their operations. New
products now being produced in
the area include plastics, heavy
chemicals, electric fans, dish wash-
& Co.
City.
14.0
7.9
.
Atlantic Coast Line
branch
stores
Denver,
•
k
y Department Stores Co.
,
and
Central of Georgia—
1
.
_
during the 12 months be¬
ginning March 1, 1955, with suc¬
cessive reductions annually to par
on
March 1, 1979.
*
-: - -
; 19.3
11.8
L---
largest gains
while
.61%
most
_
103 V4%
14.3
Pacific
,
...
■S1tmgiUnd
"
17,1
Union
.
in 1966.
nmg
.
Mexico
the
showed
that
past decade
the
industrial customers
of
increased
19%
19.1
New Orleans, Texas &
the country. It is one of only three states
(the other two are the Carolinas)
which appear in all three lists—
the 10 states that grew fastest in
manufacturing during 1929-52, the
10
development,
•
During
the
carried down to net income (about
18.4
14.3
&
of the most con-
one
sistent growth states in
quarter
a
14.4
Mobile
is
Kansas
was
have
will
Illinois Central
Gulf,
progress,
years ago
-
Louis,
partment
24.1
&
St.
and fall.
18.7
Louisville
As an indication of the
made, the largest retail
number
-
1954, when residential KWH sales
up 27% compared with the
U. S. figure of 11%, and commer¬
fund
stores—located in
&
one-
miscellan-
and
commercial
eous.
sinking
27.2
Norfolk
and
industrial,
third
capacity
26.9
Southwestern-
(it does
syndicate offering $25,000,000 of
May Department Stores Co. 3V4%
a
Denver & Rio Grande Western
Louis
supplies 13 at wholesale
two-and-a-half
1953
31.6%
25.8
,
in revenues since 1944.
and 210%
store 10.
had a demand,of only,
no
gas business).
The principal 35 KW while today's super-marcities
served
include
Wichita, ket has a demand of 165 KW-. ArNewton, El Dorado, Fort Scott, rangements have also been cornIndependence,
Pittsburgh
and pleted for hotel and restaurant
nities in southeastern Kansas and
nearly
Island.
including working capi¬
tal and expenditures for additions
PROFIT MARGINS
142 commu-
electricity to
wU*i 'purchase' any" unsiTbsSbed Arkansas City. Total population supply firms to sell electric cookin the area is about 436,000. The ing equipment along with other
The'company intends to apply economy is largely agricultural restaurant items, and include it in
the
proceeds from
the
sale
of
industries include coal, oil, the over-all financing. Thus tne
these shares to the redemption on gas producing, airplane manufac- company
has been increasingly
April 15, 1955 of its outstanding tun,"g, f'°lur milling and meat successful, in promoting commer$2.10 cumulative prior preferred packing. The revenues of the com- cial electric cooking This: class of
stock, and any balance will be pany are well balanced—roughly business is profitable and offers
added to general funds.
The ag- one-third residential and rural, good
opportunities for furtner
one-third
purposes,
PRE-TAX
retails
shares
also
the top seven in 1953 although
their order at the top of the ladder shifted. This top group, significantly, is comprised of three
coal roads, one southern road, and
three in the west.
One of the
poorest relative
showings was
that of Western Pacific which
slipped from eighth place in 1953
(a 24.8% margin) to 18th place
last year with a margin of 14.2%.
Even at that it remained comfortably above the industry average.
of¬
fer will
that the top
will be noted
It
seven
The subscription
shares held.
its actual profit margin.
the
with
the
down
list-
are
of
individual roads showed
narrower profit margins last year
than in 1953. There were, however, six exceptions to this general rule. Virginian and Kansas
City Southern, which were at the
top of the list, both increased their
margins fairly widely, and smaller increases
were recorded by
New Orleans, Texas & Mexico
and Missouri Pacific. The largest
percentage year-to-year gain was
that of Minneapolis, St. Paul &
S. S. Marie (the profit margin in
1954 was more than double that
of 1953) but its actual profit margin was still well below the industry average. Coast Line, which
was the sixth road reporting an
increase last year, was also well
of
Kansas Gas & Electric Company
share
notable that all four of the major
eastern trunk line carriers were
in the group that carried less than
10% of gross revenues through to
net operating income before Federal income taxes, with three of
them—Central, Pennsylvania and
carried in
transportation
ago
1953
from
—
offices
derson* Place, j *
•
^
a
at
Roger R.
ability of low-cost natural
securities
236
An-
gas.
A special effort has been made
to
.
improve
commercial
sales
Samuel Franklin Adds
(Special to The Financial Chsonicle)
LOS ANGELES,
Calif.—Russell
W. Gerst is with Samuel B. Frank-*
iin & Company, 215 West Seventh
h®ve gained^241% in KWH •Street;^
.
■
•
.f.
%
Volume 181
Number 5408
.
.
.
The Commercial and Financial Chronicle
1037
25
INVESTMENT TRADERS ASSOCIATION
OF PHILADELPHIA
ANNUAL MID-WINTER
J
At
V
DINNER
Benjamin Franklin Hotel
FEBRUARY 25, 1955
President
First
Second
V ice-President
Vice-President
Treasurer
Secretary
Edgar A. Christian
Stroud
&
Company,
v
*•
Incorporated
Wallace H. Runyan
James G. Mundy
Hemphill, Noyes
&
Samuel
Stroud
& Company,
Incorporated
Co.
M.Kennedy
Yarnall, Biddle & Co.
G. Robert Brooks
Schmidt,
Roberts
&
Jack Christian
Elkins, Morris & Co.
Parke
Reynolds & Co.
John P. Dempsey
Kidder,
&
A. H. Fenstermacher
M.
M. Freeman
John M. Hudson
&
Boston
GOVERNORS
Spencer Corson
Janney & Co.
Poole,
Harry H. Fahrig, Jr.
OF
First
Corporation
r
BOARD
Rubin Hardy
William H. Doerr
Peabody
American
Co.
J. Edward Knob
Thayer, Baker & Co.
D-exel
&
Securities
Corporation
Robert McCook
Cc.
Hecker
Co., Inc.
&
Co.
Robart F. Donovan
Llyth
&
Co.,
Inc.
William J. McCullen
Hendricks
&
Eastwood, Inc.
Thomas F. O'Rourke
Joseph
L. O'Brien
Co.
Willard F. Rice
Eastman,
&
Dillon
Co.
J. Leslie
Blair
Rodgers
&
Co.,
Incorporated
Joseph E. Smith
Newburger
&
Co.
Roy C.Thomas
F.
P.
Ristine
&
Charles
Co.
H. M.
Wallingford
Byllesby and
Company, Inc.
John F. Weller
Goldman, Sachs A
Co.
The Commercial and
26
Financial Chronicle
.
.
.
Thursday, March 3, 1955
1038
Rick
Sander, Butcher & Sherrerd;
Carroll Williams, Laird,
Arleigh Hess, Woodcock, Hess
Bissell & Meeds, New
& Co. Inc.;
John W.
York City
York, Western Saving
Elwood
Williams,
Ripley
Fund Society; Russell M.
Pennsylvania Company for
& Co. Incorporated; R. C.
Ergood, Jr., Stroud & Company,
Banking & Trusts; Eugene
Incorporated;
Arnold, Harriman
Schuler, First Boston Corporation
Dealers in
Corporate and
Municipal
Securities
Specializing in
Pennsylvania Tax Free Issues
Biddle & Co.
Yarn all,
Members
New
York Stock Exchange
Philadelphia-Baltimore Stock Exchange
American Stock Exchange (Assoc.)
1528
WALNUT
STREET,
PHILADELPHIA 2, PA.
Eddie
Greetings and Best Wishes from
TRADING DEPARTMENT
R. Victor Mosley,
R. Victor Mosley
>
Stein,
Asiel• <fi Co., New York City; Ed Knob, Drexel & Co.; Joseph Nugent,
New York City; F. E. Maguire, Stroud <£ Company, Incorporated;
Samuel H. Rosenberg, Asiel & Co., New York City
Mabon & Co.,
Philadelphia
PERSONNEL
vice president
Equipment Trust Certificates
Frank J. Laird
Railroad Bonds, Guaranteed
Frank J. Laird
Leased Lines Stocks
and
Allan
B.
Foard, Jr.
Public Utility
Edgar A. Christian
Bonds & Stocks
Industrial
James G.
Mundy
Russell M.
Michael J.
L. Wister
Ergood, Jr.
Municipal Bonds
Rudolph
Randolph
Institutional Department
Robert J. Campbell
DeCourcy W. Orrick
Statistical Department
Edward F. Hirsch
Field Representative
Felix E. Maguire
Vic
&
STROUD & COMPANY
INCORPORATED
123 South Broad
Street
PHILADELPHIA 9
NEW
YORK
PITTSBURGH
ALLENTOWN
LANCASTER
ATLANTIC CITY
Mosley, Stroud & Company,
Co.;
Charles
L.
Incorporated; Floyd Justice, Kidder, Peabody
Wallingford, H. M. Byllesby
and Company, Incorporated
Volume 181
Number 5408
.
.
.
Edgar Christian, Stroud & Company, Incorporated; Alonzo H. Lee, Sterne, Agee & Leach,
Bill
1039
The Commercial and Financial Chronicle
Birmingham;
Paul D. Howe,
Roberts, C. T. Williams & Company, Inc., Baltimore; John W. Bunn, Stifel, Nicolaus & Company,
Incorporated, St. Louis; Robert Daffron, Harrison & Co.
A. Webster Dougherty & Co.; Samuel A. Crozer,
Stroud & Company,
Incorporated; Walter Schmidt, Schmidt, Poole, Roberts & Parke
Butcher
Sherrerd
&
ESTABLISHED
1910
TRADERS
CORPORATE
James J.
McAtee, Manager
Walter E. Gemenden
Rudolph C. Sander
MUNICIPAL
TRADERS
James W. Heward, Manager
Henry P. Glendinning, Jr.
John B. Richter
MEMBERS
New
Philadelphia-Baltimore Stock Exchange
York Stock Exchange
American
Exchange
Stock
1500 WALNUT STREET
Philadelphia Telephone
John
Flynn, 2nd, E. W. Clark & Co.;
Underwood, Boenning &
New York City; Fred
Carl M. Loeb, Rhoades & Co., New York City
Ed Kelly, Carl M. Loeb, Rhoades & Co.,
Co.; John
Tierney,
PEnnypacker 5-2700
•
(Associate)
PHILADELPHIA 2, PA.
New York Telephone
BArclay 7-4641
Teletype
PH-4
Drexel & Co.
Established 1838
Underwriters and Distributors
of
Public Utility,
Industrial and Railroad Securities
State, Municipal and Revenue
Obligations
Members
New York Stock
Gus Schlosser, Union
Co., New York; Soren D. Nielson,
Tucker, Anthony &
Exchange
American Stock Exchange (Assoc.)
Securities Corporation, New York; Paul Bodine, Drexel & Co.;
Joseph Mangeat, Orvis Brothers &
Philadelphia-Baltimore Stock Exchange
Co., New York
Philadelphia 1
New York 5
St.
14 Wall Street
1500 Walnut
27
The Commercial and Financial Chronicle
1040
28
.
.
.
Thursday, March 3, 1955
y//S//SS/¥.y/s
HKHiKk
35
OFFICES
BROKERS
COAST
TO
UNDERWRITERS
•
WeilstOil t- (
COAST
•
J
DEALERS
0.
John
Hines, Dean Witter &
James
C.
Co., New York City;
Jim McAtee, Butcher & Sherrerd;
Fitzpatrick, Dominick & Dominick, New York City
FOOTE MINERAL CO.
Common Stock
We have
this
just prepared
growth
a
report on
which
company,
is
available upon request.
BOUGHT
•
SOLD
QUOTED
•
Lawrence
Illoway, Aspden Robinson & Co.; Ellwood S. Robinson, Aspden Robinson & Co.;
Walter
Fixter, J. W. Sparks & Co.; A. W. Battin, Blyth
& Co., Inc.
SCHMIDT, POOLE, ROBERTS & PARKE
Members
123
SOUTH
Phila.-Baltimore
BROAD
STREET,
N.Y. Phones
PH
9,
PA.
Phild. Phone
538
KIngsley 5-0650
2-1695
REctor
■
Exchange
Teletype
2-4556
IIAnover
Stock
PHILADELPHIA
'
"
'
v.
"
•,
/
PRIMARY
PUBLIC
\
'
INDUSTRIALS
UTILITIES
MARKETS
WITH COMPLETE
(
Phillips
j
RAILROADS
\
BANK
Street,
First
Boston
Boston
Corporation;
John
Corporation, New York City;
Barton,
F. P.
Ristine
&
Co.;
W.
R.
L. Hutchinson, Kidder, Peabody
A.
&
Caldwell,
First
Co.
TRADING FACILITIES
AND
INSURANCE
■
1
.
BONDS
PREFERRED
•
STOCKS
COMMON
•
STOCKS
Blyth & Co.. Inc.
NEW YORK
BOSTON
LOUISVILLE
EUREKA
•
SAN FRANCISCO
SPRINGFIELD
•
•
•
'
DETROIT
SACRAMENTO
•
CHICAGO
PHILADELPHIA
•
*
LOS ANGELES
•
PITTSBURGH
•
MINNEAPOLIS
FRESNO
SAN JOSE
*
_
.
•
•
SEATTLE
CLEVELAND
SPOKANE
\
♦
PASADENA
*
PORTLAND
INDIANAPOLIS
•
OAKLAND
•
•
SAN DIEGO
Edward
J.
Caughlin,
Baltimore;
Edward
Arthur
J.
Caughlin
&
Co.;
Horton. Penington, Colket
D.
W.
Hayden,
Baumgartner,
& Co.; John Lamb,
Downing
&
Penington, Colket & Co.
Co.,
Volume 181
Number 5408
.
.
.
The Commercial and Financial Chronicle
:1041
&> Co.
Blair
I
N
C
R P O R AT E D
O
Business continuous since 1890
Underwriters and Distributors of
and Railroad Securities
Municipal, Utility, Industrial
Equipment Trust Certificates
•
Bank and Insurance Stock
Walnut
1528
Department
Street, Philadelphia 2
Teletype PH 269
Telephone PEnnypacker 5-0100
Private Wire
Tom Love, Geo. E. Snyder & Co.; George J. Muller, Janney & Co.; Jim Moynihan, J. B. Maguire & Co.,
Inc., Boston; John Fant, Penington, Colket & Co.; Coit Williamson, Schmidt, Poole, Roberts & Parke;
In the background: Elwood Williams, The Pennsylvania Company for Banking & Trusts
System Connecting Offices
,
KEYES FIBRE COMPANY
Manufacturers of molded
management—sound financial position—and
Excellent
an important
expanding market for consumer repeat
the important characteristics of this growing
industry position in the
paper
products and plastic products
products
are
ever
Company.
recommend its securities for dividend, income and
We continue to
capital appreciation.
The Common is
now
available
at
about eight times estimated 1954
earnings, to yield better than 5%.
1914
ESTABLISHED
BOENNING & CO.
MEMBERS
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
AMERICAN
STOCK
EXCHANGE (ASSOCIATE)
1529 Walnut Street
Jim
Cram,
Wurts,
&
Dulles
Co.;
Joseph
Kerner Inc.;
Smith,
Newburger
&
Co.;
PHILADELPHIA
Ed Davis, Rambo, Close &
2,
PA.
Lew Jacoby, Thayer, Baker & Co.
LOcust
New York Telephone
Bell System Teletype
8-0900
PH
COrtlandt 7-1202
30
~T
Investment Bonds and Stocks
Harry
Green,
Bob
Merrill
Torrens,
Lynch, Pierce, Fenner & Beane; Cliff Remington, Woodcock, Hess
& Co. Incorporated; Willard F. Rice, Eastman, Dillon &
Harriman Ripley
& Co.;
Co.
Securities of the United States Government
and its Instrumentalities
State, Municipal and Revenue
Securities
Bonds, Preferred and Common Stocks of
Public
Industrial,
Utility and Railroad Corporations
Bank and Insurance
Company Stocks
Bankers' Acceptances
Securities of the International Bank for
Reconstruction and Development
Canadian Bonds
Underwriter
New York
Philadelphia
Dan
Quinn, Schirmer, Atherton & Co., Boston; Jim McFarland, Hecker &
Baker & Co.; Victor Dugal, J. B. Maguire & Co., Inc.,
Co.; John Hudson, Thayer,
Boston
•
Foreign Dollar Bonds
Distributor
•
Boston
Pittsburgh
Cleveland
•
Dealer
Chicago
San Francisco
29
30
1042
The Commercial and Financial Chronicle
.
.
.
Thursday, March 3, 1955
J. W. SPARKS & CO.
ESTABLISHED 1000
MEMBERS
NEW
YORK
STOCK
EXCHANGE
PHILA.-BALTIMORE
AMERICAN
STOCK
STOCK
EXCHANGE
EXCHANGE
Brokers in
LISTED and UNLISTED SECURITIES
STATE, MUNICIPAL and REVENUE BONDS
DIRECT
WIRE
TO
120
York
YORK
NEW
worth
5,
A.
Broad
Y.
n.
T.
a
Western
210
Broadway
New
a
Philadelphia
4-0220
T.
KIngsley
622
TELETYPE—PH
Savings
Chestnut
7,
Fund
Bldg.
Sts.
Pa.
6-4040
At
Willis, H. M. Byllesby and Company, Incorporated; Harry Peiser, Ira Haupt & Co., New York City;
Dick Heward, Janney & Co.; Stump
Carruthers, H. M. Byllesby and Company, Incorporated;
John E.
Maguire, May & Gannon, Inc., Boston
E. W. CLARK & CO.
ESTABLISHED
1837
•
MEMBERS
PHILADELPHIA-BALTIMORE
NEW
YORK
AMERICAN
STOCK
EXCHANGE
LOCUST AT
EXCHANGE
EXCHANGE
STOCK
STOCK
16th
(ASSOC.)
STREET
PHILADELPHIA
)
•
Telephones:
Philadelphia KIngsley 5-4000
New
York
Germantown
WHitehall
3-4000
Lancaster
York
Raymond Forbes, Shear son, Hammill & Co., New York City; William Gregory III, Bonner &
New York City; Robert M. Topol, Greene & Company, New York City;
Andy Pimley, Woodcock, Hess & Co.
Active TRADING MARKETS
in All
Gregory,
Pennsylvania School Authority
and General Obligation State, County and Municipal Bonds
Primary Markets
in
Pennsylvania Tax-Free
Preferred and Common Stocks
Kidder, Peabody
FOUNDED
Co.
1865
Members New York Stock Exchange, American Stock Exchange,
Boston Stock Exchange and Midwest Stock Exchange
Fidelity-Philadelphia Trust Bldg., Phila. 9, Pa.
Teletype: PH 249
Telephone: KIngsley 5-1600
Altoona
Reading
Scranton
Wilkes-Barre
9405
4-3153
3-1261
Valley 3-1166
Ed
Philadelphia's Oldest and Largest Trust Company Offers
Evans, Philadelphia National Bank; Bob Brooks, Schmidt, Poole, Roberts & Parke; John Meyers,
Gordon Graves & Co., Inc., New York City; Glenn
Thompson, Drexel & Co., New York City
Clearance
A special
facilities
department is maintained for
of Brokers and
a
large clientele
Security Dealers. We specialize in set¬
tling and handling all types of securities transactions
locally and nationwide. Redeliveries
died
by messenger
work of
or as
are
promptly han
*
collections through our net¬
Correspondent Banks. Our fees
are
moderate.
Inquiries invited.
THE
PENNSYLVANIA
COMPANY
24 Offices
for
PHILADELPHIA
Banking and Trusts
Founded 1812
Haroid
Ed.
Member Federal Reserve System
•
Federal Deposit Insurance Corporation
J.
J.
Williams, Boenning & Co.; Col. Oliver J. Troster, Troster, Singer & Co., New York
Caughlin, Edward J. Caughlin & Co.; Bill Kumm, Coggeshall & Hicks, New York
W. McCauley, Hallowell, Sulzberger & Co.; C. R.
Suter, H. A. Riecke & Co., Inc.
A.
City;
City;
Volume 181
Number 5408
.
.
The Commercial and Financial Chronicle
A
J
,
.
<
1043
I
1
ESTABLISHED
,
31
'
1912
BROOKE
(Formerly
Members
Brooke,
&
Stokes
CO.
Co.)
&
Philadelphia-Baltimore Stock Exchange
N. W. Corner 16th & Locust Sts.
300 N. Charles St.
Philadelphia 2, Pa.
Baltimore 1, Md.
m
Don
Fleming, A. G. Becker & Co. Incorporated, New York City; George J. Stadtler, Jr., Girard Trust
Corn Exchange Bank; Harry Weber, A. G. Becker & Co.
Incorporated, New York City;
Belford R. Thompson, Girard Trust Corn
Exchange Bank
Rambo, Close & Kerner
Incorporated
1518 LOCUST ST., PHILADELPHIA 2, PA.
Phila.
Telephone
York
New
•
Telephone
Teletype
,
'
PEnnypacker 5-2800
REctor
2-2820
PH
63
Corporate and Municipal Securities
EDMUND J. DAVIS
Vice
President
in
WALTER G. NELSON
Charge
of
Manager
Corporate Department
UNDERWRITERS
John
E. Parker, H. A. Riecke & Co., Inc.; Tom
Riordan, Drake & Company, New York City; Bert
Friedman, J. B. Hanauer & Co., Newark, N. J.; Charles Murray, Drake & Company, New York City;
Dick Williams, Baxter, Williams & Co., Cleveland, Ohio
Municipal
Bond
DISTRIBUTORS
•
of
Department
BROKERS
•
Effective Distribution in the Nation's
Third Largest
Trading Area
Newburger
&
Company
Members:
New
York
Stock Exchange
•
American Stock Exchange
Philadelphia-Baltimore Stock Exchange
1401 Walnut Street,
New York City
Bill
McCullen,
Henricks
Walker, National
&
Eastwood, Inc.;
Quotation Bureau,
Jack
New
Germain, Eastern Securities, Inc., New York;
York City;
Wally
Runyan,
Hemphill, Noyes
&
Philadelphia 2, Pa.
Lebanon
LOcust 8-1500
:
Atlantic City
Vineland
Lou
Co.
-/■■■*:.."V
J-
w#
,
'A-frT
■■■■
r-<-
-
■
DEALERS AND
UNDERWRITERS
Obligation of tif
COMMONWEALTH OF PENNSYLVANIA
and its Political Subdivisions
;
Specialists in...
it \
,
CITY OP PHILADELPHIA BONDS
PENNSYLVANIA SCHOOL AUTHORITIES
TURNPIKE, WATER AND SEWER ISSUES
SCHAFFER, NECKER & CO.
Packard Bldg., Philadelphia 2
LOcust 7-3646
•
Teletype PH 864
BOSTON
Enterprise 1370
MINNEAPOLIS
CHICAGO
Enterprise 5131
NEW YORK
Numbers from
CINCINNATI
Enterprise 3646
PITTSBURGH
these cities.
CLEVELAND
Enterprise 6289
ST. LOUIS
Local
Joseph
Soliday & Co.; Carl Necker, Schaeffer, Necher & Co.; Harley
Sachs & Co.; James A. Traviss, Goldman, Sachs <ft Co., Philadelphia
McNamee, Hopper,
Goldman,
Rankin,
Telephone
MILWAUKEE
Enterprise 8-3646
ST. PAUL
Zenith 4245
Enterprise 6289
Zenith 0821
Enterprise 8048
Zenith 4245
The Commercial and Financial
Chronicle
.
.
.
Thursday, March 3, 1955
Special Situations in
OVER-THE-COUNTER
SECURITIES
Edward J. Cadghlin & Co.
Members
Philadelphia-Baltimore Stock Exchange
FINANCE BLDG.,
PHILADELPHIA 2, PA.
Teletype—PH 788
Telephone—RIttenhouse 6-4494
A1
Knapp, Wurts, Dulles & Co.; Bill Schreiner, F. J. Morrissey & Co.; Walter1 Fixter, J. W. Sparks
& Co.; Marshall Schmidt, Drexel & Co.; Len Bailey, White, Weld & Co.;
Tony Coculo, Fidelity Philadelphia Trust Company
SAMUEL K. PHILLIPS 6- CO.
1904
Members
Our
—
Fifty First Year
1955
—
Philadelphia-Baltimore Stock Exchange
LISTED AND UNLISTED SECURITIES
1500
Chestnut Street,
Bell
Philadelphia
LOcust
Philadelphia 2, Pa.
PH
York
New
System Teletype
4-2600
COrllandt 7-6814
375
Underwriters and Distributors
Industrial, Public Utility and
Jim
Mundy, Stroud & Company, Incorporated; Helen Schnetke, Raff el & Co., President of Investment
Club of Philadelphia; Rick Sander, Butcher & Sherrerd; Bob Greene, Stroud & Company,
Incorporated; Joe Cummings, Brooke & Co.
Women's
Railroad Securities
Municipal Bonds
Bank and Insurance Stocks
Unlisted Securities
Laird, Bissell & Meeds
MEMBERS
NEW
YORK
AND
120 BROADWAY,
AMERICAN
Telephone BArclay 7-3500
DU PONT
WHITNEY
NEW
EXCHANGES
Bell Teletype NY 1-1248-49
LINCOLN
BUILDING
LIBERTY
BUILDING
PHILADELPHIA,
WILMINGTON, DEL.
44
STOCK
NEW YORK 5, N. Y.
BASLE,
AVE.
160
SWITZERLAND
HAVEN, CONN.
PA.
W.
BROADWAY
SALEM, N. J.
Frank
Haines,
W.
First
We maintain active
H.
Newbold's
Boston
Son &
Co.;
Sam
Kennedy,
Yarnall,
Biddle
&
Bud
Co.;
Hardy,
Corporation; Charles Priggemeier, Rambo, Close & Kerner, Inc.
trading markets in
PENNSYLVANIA
TAX-FREE
and
DELAWARE VALLEY USA
Securities
Traders:
CARL
LACHMAN, JR.
.
WILLARD F. RICE
Eastman, Dillon
&
Co.
Members New York Stock Exchange
225
Phone:
South
15th Street,
KIngsley 5-3500
Philadelphia 2
New York: Bowling Green 9-3100
Joe
Markman, Newburger & Co.; Richard Newburger, Newburger & Co.; Arthur Hanff, Newburger &
Co.; Frank Gorman, H. G. Kuch &
Company; Lloyd Brown, Arthur L, Wright &
Co., Inc.
Volume 181
Number 5408
.
.
.
The Commercial and Financial Chronicle
1045
Philadelphia Suburban Water
New
Jersey Natural Gas Common
Penn Fruit Common & Preferred
Philadelphia Transportation Co.
Common
&
Quaker City Cold
4s
of
1973
—•
3-6s.
Storage
Voting Trust Common
(Sen. IE.
Members
1401
Sc fflo.
Philadelphia-Baltimore
Walnut
Telephone Rittenhouse
New
George Snyder, Geo. E. Snyder & Co.; Edgar Christian, Stroud &
Company, Incorporated; Harry L.
Arnold, Goldman, Sachs & Co., New York City; Bud
Hardy, First Boston Corporation
2039
Preferred
York
Stock
Exchange
St., Philadelphia 2, Pa.
6-0308
Teletype PH 220
City Phone HAnover
2-4552
Underwriters and Distributors
PENNSYLVANIA
GENERAL
MUNICIPAL
MARKET
CORPORATE
REVENUE
AND
BONDS
MUNICIPAL
BONDS
SECURITIES
AUTHORITY
BONDS
Aspden, Robinson & Co.
Members
1421
New
York
COrtlandt
Philadelphia-Baltimore Stock Exchange
CHESTNUT STREET, PHILADELPHIA
Phone
Teletype
7-6814
PH
2
Philadelphia Phone
313
RIttenhouse 6-8189
PRIMARY MARKET
Willard Brown, Laird, Bissell &
Meeds, Wilmington, Del.; William T. Schmidt, Laird, Bissell & Meeds,
New York City; Stanley W. Jeffries,
Newburger & Co.; Chick Bradly, E. W. Clark & Co.;
Walter
Bradley, B. W. Pizzini & Co., Inc., New York City
Autombile Banking
Corporation
A and
B PREFERREDS
COMMON STOCK
Established
Bioren
1865
Co.
(r
MEMBERS
New
York Stock Exchange
American Stock Exchange
Philadelphia-Baltimore Stock Exchange
1508
Walnut
Street
120
Philadelphia 2, Pa.
PEnnypacker 5-9400
Robert
Naylor, H. N. Nash
Shelby Cullom Davis
&
&
Co.; Frederick S. Fischer, H. N. Nash
&
Co.;
William
D.
Broadway
New York
5, N. Y.
WHitehall 3-0590
O'Connor,
Co., New York; Herb Gesell, Kugel, Stone & Co., Inc., New York
Call
JANNEY for—
I
Bank and Insurance Stocks
active
trading
markets
Pennsylvania Tax Free
Industrials
Rails
Utilities
Common and Preferred Shares
City-County-State-Authority Issues
Guaranteed Rails
New York Telephone
WOrth 4-2140
Bell Teletype System
JANNEY & CO.
1529 Walnut
Street, Philadelphia 2
RIttenhouse 6-7700
Since
Julius
New
& Company, New York City; Bert Seligman, Straus, Blosser & McDowell,
City; Edwin Markham, Wertheim & Co., New York City; Arthur G. Hiscox, Hiscox, Van
Meter & Co., Inc.; Louis Weingarten. Herzoe & Co., New York City *
Golden,
York
Greene
1907—Underwriters, Distributors, Dealers, Brokers
33
34
The Commercial and Financial Chronicle
1046
.
.
.
Thursday, March 3, 1955
*
Established
1896
Pemngton, Colket & Co.
Members
New
Stock
York
American Stock Exchange
Exchange
Stock
Philadelphia-Baltimore
COMPLETE TRADING
deliveries
Incoming
York
New
Cjty
Exchange
FACILITIES
in
accepted
Philadelphia
cr
RETAIL DISTRIBUTION
Pliila<IH|»hia f>, Pa.
12,1 SonIh llroail SfrtM'I,
Teletype PH 180
PEnnypacker 5-7700
Harold
DIRECT TELEPHONE
BAUMGARTNER,
Co.; A! Wells, Lilley & Co.
CONNECTION TO
BETWEEN OFFICES
This Is How It Works
—
prejudice and in the light of constantly shift¬
or
ing conditions,
H. N. Nash & Co.; Thomas D. Call, Lilley &
DOWNING & CO., BALTIMORE, MD.
PRIVATE TELEPHONES
Without favor
N. Nash,
Reading
Altoona
Manhasset
New York
we
continue to search for relatively
under-valued
securities.
resulting selections form the basis of almost 100 primary
The
trading markets, carried in the Philadelphia Office, in
our markets are firm and our interest often substantial.
An increasing
to
number of dealers
are
which
J.
Lewis
Armstrong, J.
C. Pitfield & Co., Inc., New York
New York City; Lester Gannon, Peter Morgan & Co..
Lewis Armstrong & Co.; Irving Grace, W.
City; George Dcdrick, Joseph McManus & Co.,
New
York
City
finding it advantageous
look—and do business.
stop,
H. M.
Byllesby and Company
(Incorporated)
Philadelphia-Baltimore and Midwest Stock Exchanges
Members
Associate Member American Stock
1500
2, Pa.
New York Phone
Philadelphia Phone
RIttcnhouse
Exchange
Chestnut Street, Philadelphia
REctor
6-3717
PH 606
MINNEAPOLIS
YORK
NEW
CHICAGO
Teletype
2-0553
Corporation, New York City; Carl Swenson, G. H. Walker & Co.,
C. Reilly, G. H. Walker & Co., New York City; Frank Ronan, New York
New York City; Bernie Eberwein, Alex. Brown & Sons, Baltimore; Newt Parkes,
York Hanseatic Corporation; Aaron Netburn, New York Hanseatic Corporation, New York C-ty
Maurice
New
Hart, New York Hanseatic
York
John
City;
Hanseatic Corporation,
New
DeHaven
&
Townsend, Crouter & Bodine
Members
New
York
&
Philadelphia-Baltimore Stock Exchanges
American
Stock
and
Exchange
Iw
1500
CHESTNUT
STREET,
PHILADELPHIA
#
DIgby 4-0200
4-2000
Bell
-Ag| i. ?|
^£:%&■: iy
,'
New York Phone
Philadelphia Phone
LOcust
■
2
System
-
^Am
H
Teletype—PH 518
■
WmT
Sk
I^IHPPIPw a mjflB Hi
'• f,:' Y
Iff
If f ! '; I
Distributors, Dealers, Underwriters
:
■
Corporate and Municipal Issues
Stock and Bond Brokers
New
30
BROAD
York
STREET
Wilkes
Barre,
Pa.
Stamford, Conn.
Deposit & Savings Bank Bldg.
77 BEDFORD STREET
VAIIey 3-4131
4-2148
DIgby 4-0200
Harry
Strickler,
•
Walston
& Co.; John Cantwell,
Walston & Co.; A1 Hoffman, Girard Trust Corn
Corn Exchange Bank
Exchange Bank; Ross Watson, Girard Trust
'
\
Volume 181
•
Number 5408
.
.
.
1047
The Commercial and Financial Chronicle
Hopper, Soliday & Co.
Established 1872
Members Philadelphia-Baltimore
Stock Exchange
Brokers and Dealers in
LISTED AND UNLISTED SECURITIES
Trading Department
Hal
Murphy,
Commercial
Richard
& Financial Chronicle, New York; John Milburn,
Linburn, Simons, Linburn & Co., New York
John
Joseph A. McNamee
Hecker & Co.;
1420
Telephone
Gibson, Jr,
Walnut Street, Philadelphia 2,
—-
Penna.
Teletype —PH 593
PEnnypacker 5-4075
Markets
Trading
Philadelphia Bank Stocks
BONDS
RAILROAD
SECURITIES
REORGANIZATION
RAILROAD
Weiss, A. W. Benkert & Co. Inc., New York City; Bill Fleming, Walston & Co., New York
City; Joe Alberti, Walston & Co., New York City; Pat Collins, Walston & Co., Philadelphia
Malcolm
Pennsylvania, New Jersey & Delaware Bank Stocks
Philadelphia Transportation Co. Issues
F. J. MORRISSEY & CO.
Building, Philadelphia 2, Pa.
Finance
New York Telephone
Philadelphia Telephone
RIttenhouse
6-8500
&
Bell
Frank
Warner,
New
G.
A
York
Saxton
&
Co., Inc.,
City; Walter
Bob
New York; Arthur Bertsch, G. A. Saxton & Co.,
Inc., New York City;
Cc., New York City
HAnover 2-0300
6-3295
System Teletype—PH 279
Inc.,
Johnson, G. A. Saxton & Co.,
Kullman, Carl M. Loeb, Rhcades &
United States
Governments
Municipals
Bank and Insurance Stocks
Public
Utility—Railroad—Industrial
Bonds, Stocks and Rights
Foreign Securities
New York Hanseatic
Corporation
Established
Associate
1920
Member American
120 BROADWAY
•
Sto-ik Exchange
NEW YORK 5, N. Y.
Teletype: NY 1-40-1-2
Telephone: WOrth 4-2300
PHILADELPHIA BRANCH:
Lincoln Liberty
LOcust 7-6773
Building
Open End Telephone Wire to New
DIRECT
ander,
New York; Ely Batkin, Seymour Blauner,
Whittacker, all of Batkin & Co., New York City
Englander & Co.,
Clarence
B.
and
PRIVATE
WIRES
TO
9
York
CITIES
35
36
The Commercial and Financial Chronicle
1048
DISTRIBUTORS
State
*
Bank
Municipal
.
.
Thursday, March 3, 1955
DEALERS
•
Corporate Securities
*
Stocks
Insurance
•
.
Mutual Funds
•
Pennsylvania Authority & Revenue Bonds
New
Housing Authority Bonds
Public
markets in unlitted tecurtties
We maintain active trading
Inquiries
on
Pennsylvania
Inactive
Securities
Invited
Arthur L. Wright & Co.,
225 SOUTH
Bell System Teletype
Philadelphia Telephone
KIngsley 5-1060
York
New
PH—255
W.
Benkert
&
Co.
&
DIgby 4-5951
Telephone:
City
Wires
Private
Direct
A.
Inc.
15TH STREET, PHILADELPHIA 2
To:
and
Inc., New York City
Co., Baltimore, Md.
C. T.
Williams
Walter
We continue to have an
V.
Kennedy, Coffin & Burr, Incorporated, New York; Frederick Owen, First Boston
Corporation, New York; Charles Walsh, First Boston Corporation, New York;
John Yeager, Baker, Watts & Co., Baltimore
active
buying interest for our own account in
public utility, industrial, real estate, railroad
—
OVER
-
THE
COUNTER
-
—
stocks and bonds
Invited
Dealer Inquiries
LilleyCo.
Members
Stock
Philadelphia-Baltimore
Exchange
Packard Building, Philadelphia 2, Pa.
Phone:
RIttenhouse
Direct
Teletype
6-2324
Telephone
to New
PH
366
York City—CAnal 6-4045
Investment Securities
LOCAL
—
LISTED
—
UNLISTED
Jack
Klingler, First Boston Corporation; Chester Keating, Stern, Lauer & Co., New York; Sid Sicgel,
Siegcl & Co., New York; Herbert C. Tietjen, First Boston Corporation, New York;
Bill Herr, Alex. Brown & Sens, Baltimore
H. A. RIECKE & CO., Inc.
(Member Phila.-Balt.
1519
Stock
Exchange)
WALNUT STREET
PHILADELPHIA 2, PA.
Direct
Private
Wire
^
to
TROSTER, SINGER & CO., NEW YORK
INQUIRIES INVITED
Dealers and Brokers in
Public Utility • Railroad •
SECURITIES
New Jersey and
Industrial
General Market Municipal Bonds
Electronic and Television Securities
Guaranteed
and
Equipment
Leased
Trust
Line
Stocks
Obligations
Bank and Insurance
Stocks
Mutual Funds Shares
Harry
Stillman, Greene and Company, New York City; Sam Milt, New York Hanseatic Corporation,
York City; Sidney Onstil, Singer, Bean
Mackie, Inc., New York City; Harry Fahrig,
New
Chailes A. Taggart & Co., Inc.
Members
Reynolds
&
Co., Philadelphia; George Compton, Cohu & Co.,
Bill Raffel, Raffel & Co., Philadelphia
Philadelphia;
Philadelphia-Baltimore Stock Exchange
Investment Securities
1516
KIngsley 6-0900
Locust
Street,
Teletype PH 677
Philadelphia 2, Pa.
New York Phone WHitehall 4-7000
First Securities Corporation
Member
1520 Locust
Philadelphia-Baltimore Stock Exchange
Street
•
Philadelphia 2, Pa.
KIngsley 5-4700
Frank
Fogarty;
Alden
R.
Trust-Corn
Ludlow, Girard Trust-Corn Exchange Bank; John H. Lawson,
Exchange Bank; Joseph S. Reilley, Jones, Miller <fi Company
Jr.,
Girard
Volume 181
Number 5408... The Commercial and Financial Chronicle'
1049
LETTER TO THE EDITOR:
A Sale Made
My first inclination
-
to write
was
explanation of what happened
an
one
day
ceived
firm had
ing
call
I
re-
from
stranger who
certain
a
when
^
telephone
a
complete
about
week
last
security which
in the
advertised
a
asked
our
I-am reconsidering, and I am just
going to tell you the story of what
happened. Since the sale
was sue-
cessfully concluded, obviously my
telephone technique was effective.
We will analyze the procedure at
the
end
of
this
article.
I
believe
will find it helpful.
you
I
would
about the
like
to
I he
voice
out
more
stock which
advertised
you
the
in
paper?"
clear and the-tone
was
lmmediately
suggested
that
here
was
who wished to
com-
a
person
mand
1
certain
a
degree of author-
respect.
Yes, what would
like to know about it.
I re-
y
you
plied.
At the
time I lowered
same
my voice and tried to show
°f
and
just
^fer^"ce end of the
toward the
the other
at
son
without
a
perwire,
being condescending
his reply.
SfJ ^
£W ^erth°?gh} entered
introduce mythe
Jr h*!
before
answering
^
scheduled airline
y
t
I ask
may
Cane
is
La
-
I
the
t\/r„
make
am
Hotel
Mr.
ine
to
living
until
'
name
April
t
|
I
m
pleased
am
would like to
you
111
try
and
answer
of
of
everyone
the
go
your
them,
questions followed,
after another. ! did
nothing
embellishment, to
My prospect
more
every
them.
one
doing
was
^e^a ng ?
en3°ying
it. Finally
he^ said, How many
planes does this airline own.
I
j
Then
answered.
he
got around to
the
question,
Are they new?" I
replied,
The planes are not new
but
the
with
motois
CAB
overhauled
are
hours
5,000
every
"I
regulations."
from
You
When
I
engines,
call
never
opinion
my
in
and
my
Vain,
not
phshments
he
^ajn
bis
hotel gave an
financial status
believe
I
would
he
smiled
spoke. I
to
have
myself
bought.
before
I
projected that smile
even
indication of
and possibly
voice
that
it
more
even
the
was
of
my
than what I said
him
turned
tone
into
my
corner,
and I
I've
said, "You know Mr. Cane,
discussed this company for
over
two
with
years
many
of
my
triends and customers and I must
confess
I
never
knew
that.
You
Then
I took
be
will
our
as
page
help,
and
These
us.
are
allies
helping.,
now
include,
among
The
leaders
the
of
and
others
many
who
desire
|roi ^be interview by giving him
my name and then asking for his,
we^ timed.
that
know
der
anything
it put him in
in
.
one
on
time
to
Aiter we were °,n an fven basls
resPect a"d friendliness we
of
f0u0W
the
the
details
the
and
tbe
China has
"right"
no
Korea any more than Na¬
own
"right" to
any
conquer
European continent.
word for it
friend
complete
a
I
city.
strange
a
whom
gpeak
whether socially
business, can be valuable
have
ally
To
on
souls
matter
would
I
owe
intentions
out the
be
strongest point concerning
that I thought would
stock
of
interest
to
any
investor
at
this time. When I covered it I had
his
attention.
knew
like
and
that
our
he
he
He
listened
and
I
beginning to
opinions and viewpoint,
was
seemed to like
I knew the order
was
me.
forthcom-
ing when I had finished my short
i talk about why we liked this com.
.
pany
tiable
and
given)
to
this
ad¬
lot of
fears of imperialism.
No
to
nation
and
no
tried
to
China
did
without
degree,
any
be
another,
conquest
exploit
can
nation
western
conquer
blood-thirsty
commu¬
has
friendly to the U. S., do
what
we
STANISLAUS
50 East 58th Street
New
21, 1955.
*
Swiss bank
CORPORATION
this?
substance)
that
the
SWITZERLAND
Head Office: BASLE,
.VVt
Zurich
•
St. Gall
•
Geneva
•
Lausanne
Neuchatel
•
on
La Chaux-ae-Fonds
•
Schaffhouse
•
Bienne
ever-encroaching
avowed
an
enemy.
4th paragraph
your
living in
fear
regime
RESERVES
CAPITAL
re
Join Associated
75.000.000
160.000.000 S.Fcb.
S.Fce.
the mainland. Formosa's
George
Van
Van
Waters
Waters,
government hostile to, and
Wash.,
Conant,
President
St.
of Sligo, IncM
Mo., have been elected
Louis,
Exchanges,
it
was
the
of,
the
communist
the lawful premier
once
whole
Chinese
306,738,143
353,224,767
Bills Receivable
578,510,795
his
mind,
most
no
Short Advances
(take
Advances to
another
of his homeland.
conquest and did not give
of
Holland
evacuated
5,202,569
Bank Premises and other Property..
Total S. Fes.
"
Europe and took
island off shore dur¬
it
was
up
editorial, writer
and
wrong
to
no
Share
Formosa
President of
U.
S.
or
be
purpose?
even
abandoned
handed
,
to
68,000,000
Time
/
Deposits
Fixed Deposits
re¬
("Obligations")
".
1,955,392,446
" 476,597,114
206,286,500
44,107,659
Acceptances
50,066,873
Other Liabilities
by the
over
160,000,000
Sight Deposits
think
peatedly suggested that the island
of
Swiss Francs
Capital
Reserves..
hope.
British Labour leaders have
addi-
2,984,776,835
LIABILITIES.
They re¬
fused to accept as permanent such
your
12,500,000
of
refuge in an
ing the Nazi conquest.
Does
575,546,926
Other Assets
The Government
United States and Canada,
Queen
the mainland
35,146,921
.1,117,906,714
Customers, etc
Government and other Securities
poll if not satisfied), why he should
accept, permanently, the conquest
pnd
as
reason
in the minds of
nor
Formosans
Chairman and President of Reciprocal Managers, Inc., the Attorney
and Manager of the Exchanges,
the oldest and largest preferred
risk fire insurance group in the
tion to his duties
Swiss Francs
ASSETS
Banks and Bankers
in
announced
March 2 by Schuyler Merritt, II,
In
31,1954
Cash..
necessity, to Formosa is
was
of this group.
Statement of Condition, December
Republic
his government, under pressure of
Rogers, Inc.,
and
Samuel
D.
Seattle,
on
now
(and one of "the Big Four" allies
against Hitler and Japan—remem¬
ber!). The fact that he evacuated
President
&
Van Waters & Rogers, Inc., Seattie, Mr. Van Waters is a Director
its
Profit
-..
enemies.
Yet
under
similar,
and
of the Seattle-First National Bank,
Lang & Co.,
Steamship Co.
the
Total S. Fes.
24,326,243
2,984,776,835
very recent, circumstances the is¬
land of Britain called desperately
and
the
for U. S.
Olympic
siigo, Inc., has been covered for
boards
of
the
St.
Louis
help against conquest by
mainland
Formosa
hordes of Nazidom.
NEW
is
YORK
AGENCY
very much further
from the mainland of China than
Main Office, 15 Nassau Street, New York 5, N. Y.
is England (a mere 22 miles) from
fjre insurance by this group since
.1895.
Mr. Conant also is on the
4Sth Street Office, 10 W. 48th St., New York 20, N.Y.
Union
the mainland of Europe. You have
Trust Co., the St. Louis Children's
suggested that England's policy is
Hospital, and the Barnard Free
Skin and Cancer Hospital in St.
realistic.
-
I would
answer
LONDON
by ask¬
such
a
policy-* "realistic?* in?:
OFFICES
99, Gresham Street, B.C. 4, and 11c, Regent Street, S. W.l
ing what would England have
thought if the U. S. had consid¬
ered
,
any
a
of
WHITS
Korea
on
Van Waters and Conant
ruler
give
York 22, N. Y.
Feb.
(Cathay, under the Khans)
and thoroughly ex-
conquer
ever
may.
ever
China—though
or
**
the island of Formosa: Formosa has
of
aj*-
insa¬
nist-Chinese regime; nor will this
were
restrict
Now,
and considered the stock atcan feel these things. Louis, and
is a member of the
you. are .on the telephone.* advisory board of the NortonCo.
tractive. You
.when
certainly
we
(beyond what has
been
__
.this
there;
further explanation of oui%
"rethinking" especially about his, communist-Chinese regime
editorial
your
know
(in
conquests of
Reciprocal Exchanges
Given
your
own
a
no
ready
suggest
writer take his
rest
we
old
as
long period.
a
air support by the U. S.
they defi¬
nitely can remain free. Let the
only for
well
(as
has the ruler of For¬
so
over
weapons by us they can probably
remain free; given full naval and
many-
vice and sit down and do
partly moral and
partly self defense by attempting
end. "
end,
editorial
to Korea's aid was the U. S.
of the U. S.
to
surplus
a
and
ence
mosa,
butter!).
—though the issue was clouded
by calling it the U. N. The "ends"
you
or
no
that
doesn't
The
reacti0ns and the voices and stateto
be
it
writer
came
are
billion
one
is folly, not real¬
The ruler of the Korean Re¬
or
Can
.
some
they
abandon
enemy's yoke,
later may be har¬
the
public has proved to the hilt his
gravely
of all kinds and of these
arms
custom."
of satisfaction and extra
income> arKj the time you spend
practjcing it, studying your own
others
a
hordes
enemy
Most of these allies ask
ally to help her. This is
perhaps the oldest of all "well ac¬
cepted principles of international
source
of
and
perfect right to call
personality and ,by
doing s0 j was abie to adjust my
voice> my thinking, and my personaiity to his way of thinking,
Telephone selling can be a great
ments
long
conquered
China
a
had
my
of
rule Italy, which is an ap¬
pendage (to use your description)
to
his
anaiyzed
It is
of the
telephone,
in
con¬
history
he agreed that
attractive, but re-
was
fhember, he took
over
had
The
and
this
of
order
course,
stock
since
poleon had
,
out
Korea?
the
interference
communist-Chinese
of
ruled Korea.
me.
,
worked
S.
independence is clear.
answers
_.
transaction
the
U.
was
remain free. We, the U. S.,
un¬
Korea is long and the struggle and
will of its people to maintain their
to every question he asked—now
he had
end
quest
a
me the answersto this point I was giving him
up
(or enslavement)
communist
one
what
appreciative of
was
information,
world
of
dictatorship.
dogma has not changed.
Your second paragraph asks to
engines, or whatcall them in Detroit, and
ever you
doctrine
This
or
j took it and
the
"liberation"
When he showed
didn't
I
communist
China
to
willingness to fight for independ¬
under communist command.
present
in
unnecessarily
nessed against us,
ism.
to
maybe
con-
dictatorship
To
friends
that
so
communist
trinaire and fanatical believers in
was
(we had enough;
case
"desertion under fire" than "real¬
paragraph,
the
gradually began to
folly, indeed
that in Korea). In the present
it
would
better 'be called
of
nee(* them all for we are few and
I
Adminis-^
a
ism."
first
on
acquired their enmity to the U. S.
when they long ago became doc¬
before
present
done
very well con¬
difficult heritage.
To follow the British line would;
most
COming too meek, and my allowjng bim to ask several questions
coverage
the ball. I brought
it
but*
necessary
outposts and to help such allies as
pid.
engines, never motors. Is that
The properties of Van Waters &
right?" With that he warmed up, Rogers located in Seattle, Los Anhe started to laugh and I did too.
;geles, San Francisco, and elseThis is the point where we got /where are
participants in the fire
:
not,
the
has
sidering
declared
our
or
communist
say
acquainted.
approve
an
extra clue to his own self-"
esteem. My deference without be-
'
think
Whether
*
under
tration
must
regime in China.the most valuable, the people of
South Korea, the people of For¬
acquired the settled
enmity of that regime. This state¬ mosa, of Thailand, the Philip¬
Australia,
New
Zealand
ment is quite untrue and also stu¬ pines,
phone by the tone of my members of the advisory commitvoice; I did it automatically.tees of the Associated Reciprocal
I
and
doubt that it is true
history of humanity is testimony
this.
mouthings
party line.
too, is Idealism. U. S. foreign
policy in Asia tries to blend both
fortify and retain
outposts for our defense? All the
to
very
what
so,
last paragraph.
your
is
and
past
from
very akin to the
of the British Socialist
the U. S. has
the
over
we
enemies
;X\
:
,
that
you
mind
certainly is vital to have defense
the
cer-
a
;
(re¬
moves me
answer
can
of
his
it
the
appears
might be quite
stopped at
the
clear
him
"interna¬
39, where you
state that by steadfastly refusing
to give diplomatic recognition to
Take
the
only about his accombut also his opinions.
The fact that he
the climax in
was
this sale. If I had muffed it I don't
But
that
indicated
relations"
to write this letter.
cata-
man was
beginning : of
"international
ferring to Asia) that it
never
engine
an
it just isn't done." Here
motor,
in
Detroit
call them
we
motors.
a
the
at
in
adjust
can
to fit in with his
To
give
may
seems
England's hour of need—so recent,
How
book
on
help
Defends
17.
yet how quickly we forget!
tele-
bit of agitation he replied,
a
am
town
you
February
This
perspective
customs"
Realism
Chronicle
accordance
in
said that his voice lifted and with
just
i0gued
stranger
one
positive answers, with-
give
out
this
done
approach
of
would
tional
Far Eastern Policy in the
our
issue
Editor, Commercial and Financial
successful
temperament. This
of
acquaintance. Now
more
questions,
than
have
your
15,"
know about this company lets
Then
that
the
The editorial in your Feb. 17,
phone selling depends upon an
1955 number so annoyed me with
ability to determine the mood andits muddy statements about our
the personality of the person to
whom you are talking. After you neglect of "custom and tradition"
the
at
reply.
Cane,
your
anything
ahead.
believe
i
I
some
U. S. action in Korea.
both ends of the wire.
uam. Y?ry definite, short, conclusive
d U9»a!iffU
name?" "My
your
back
by the way,
j°n'
and
Porte
came
ques-
of
City voices his objections to
on
15 3 Position to tell
and
1S
t
We concluded the sale,
uf1r lne'j about motors,
self
column
editorial
worked out the transfer require-
me
h*
"muddy statements" regarding
to face with
conversation. The tone of his voice
find
—
client.
a
than
more so,
ments, and parted quite happy
morn-
After several attempts
paper.
just the same, if not
when you are face
the
Oriental
adult.
Stanislaus White of New York
west¬
all
as
suggest he read
Heritage" by Durant—which is very easily read
and most absorbing to the
average
"Chronicle" Editorial
the 'Phone
on
some
ones.
Then
"Our
By JOHN DUTTON
,.
central
Takes Issue with
Securities Salesman's Corner
14
ploit (to put it mildly)
ern
nations, as well
37
?
*
-j}:
i'
■
The Commercial and Financial Chronicle
1050
33
Continued from
first
plastics), electronics, ethical drugs,
television broadcasting, titanium,
coal
hydrogenation,
aerosel
in
values
investment
the
rise of
dynamic
a
There
are
fascinating
many
phases in the field of growing in¬
dustries and their relationship to
investment values. Only two will
be
In the
(1)
production and
industries, the
mass
distribution
mass
controlling
large per¬
centage of the business of the in¬
panies
a
dustry is rapidly increasing, while
the importance of the smaller sec¬
ondary companies, with a small
prqportion, many of them operat¬
ing on the thin margin of the
break-even.,point, is declining.
the
on
pressure
position and finances of the
companies within the ad¬
trade
well
labor
The
small
costs.
total
to
unskilled
of
margin
costs
the
with trade
by advertising
companies in competition with
larger
enterprises
supported
will
find
cult
to
more diffi¬
price basis.
it more and
compete on a
Third, is the increasing stress in
social, political and economic cir¬
cles on the necessity of eliminat¬
at least of minimizing the
business cycle and of maintaining
ing,
or
employment. A large variety of
growing
industries
fringe benefits climaxed by the
are for many years characterized
guaranteed annual wage adds to
by price instability and frequently
the burden of overhead costs, and
by prince wars. Under such condi¬ increases the break-even point.
tions
physical expansion is not
Generally speaking, qnly the well
accompanied by rising earnings..
(2)
The
Many
disappearance
such
of
price
instability, accompanied by physi¬
cal
expansion, lays
basis for at¬
a
invest¬
in
enhancement
tractive
ment values.
nies
financed
and
established
absorb such
can
compa¬
rising cost
a
burden.
Fourth, the dominant companies
with their well financed scientific
research staffs and their am¬
Rise in Stock Values of Dominant
ple
Companies
are
supply of capital and credit
steadily promoting the manu¬
ket
tember
the
1953
to
concentrated
was
in
Sep¬
November
from
values
1954
low
largely
the
in
stocks of the dominant companies
in the growing
called
been
industries, the soChips.
This rise has
Blue
widely ascribed to the buy¬
ing by institutional investors. This
fact is correct.
Behind it, how¬
ever, are a number of deep lying
fundamental
considerations
that
have operated to increase the in¬
dustrial,
of
power
stragetic, and financial
these dominant com¬
panies. The strength of the
derlying factors justifies the
differential
yield
row
un¬
nar¬
between
such stocks and high grade bonds.
vert
facture of
Once the
by-products.
production technique is perfected,
the
and
in
investment
plant
a
the incremental unit
relatively slight.
The
material costs are frequently
completed,
costs
raw
are
nominal.
is
in
substantial
a
on
numerous
industries.
is well exemplified by the
invasion
uous
refining oil companies of the
field
of
petro-chemicals.
From
source
most
comes
of
the
rapidly expanding plant capacity
The small
crude oil and oil refining com¬
panies have neither capital nor
of anhydrous ammonia.
credit
to
them
enable
to
compete
ex¬
or analysts that can in¬
investment safety.
Here, as
so
other activities, con¬
the price
many
tinuous
and study is
care
safety.
significant ob¬
In conclusion one
growing industry, and
companies with fi¬
nancial strength, adequate work¬
the
locate
dominant
the
credifr
sound
ing capital, and access to
markets,
combined with
management.
These are the raw
materials, as I see it, from which:
sound
investment values
are*
created.
companies.
devised
Continued
from page 13
in
part to offset the sales and
earnings instabilities of the capi¬
tal
goods industries
of
earning
power
industry.
of
gree
To
tion of
the
the
that
relatively
the
to
Di¬
produc¬
therefore
securities
emer¬
the
of
dominant
com¬
the growing industries
investment val¬
represent
*
strong
produc¬
involved were devoted to
which
goods
ing
The
own
relevant to
exports. Our tariff bar¬
American
hinder
riers
of protective tariffs
economic develop¬
especially
is
ment
turn,
in
we,,
efficiently.
drag
our
on
capital
and
labor
American
the
make more
.
few
in
panies
de¬
articles in addition to
new
conclusion
The
single
a
preceding.
leads
existing line.
ges
upon
this factor ties in
the
with
versification
Paper and Pulp Industry's
Stake in Freer World Trade
The
part
dependence
considerable
a
course
tlosely
in
and
to avoid the exclusive
by pre¬
exports
our
They enjoy not only earn--' venting foreigners from earning
stability in consequence of sufficient dollars in the American
ing
their established
line and
of
proportion
substantial
a
control' market to pay for
of.
a
given market, but" they also pos¬
They
the
are
fields.
new
of business adventure.
sense
a
sess
pioneers
in
many
They therefore afford
the investor
stable base of
a
earn¬
port
some
$17 billion annually in
goods
and services
commercial
unless
foreign customers are able
to pay
for them by increased ex¬
expansion.
through
Of course, we could
subsidize our exports
ports to us.
continue
loans
Dominant
Companies
Be
Need
One further note is of
The
sequence.
panies in
Not
Gargantuan
some con¬
•*- com¬
to
amounted
billion
But
1953.
American
taxpayers
to
want
abroad
allies
our
which
—
$32
some
through
the
neither
nor
countries
to
1946
and
aid
government
other
to
from
dominant
American goods
they want to buy and we want to
sell.
We cannot continue to ex¬
power and the benefits of the
dynamics of industrial and profit
ing
contin¬
by the large crude
laws
or
pit¬
the many
Despite
falls, long-term investment values
lie largely in growing industries:
programs
existing
by
in
of investment
These programs have been
It
and
this
pursued
however,
are,
tendencies
or
servers,
sure
growing industries.
diversification
moted
losses is always
There
pounded by economists, trade ob¬
have
enterprises
rules
no
By-product exploitation
developing
scale
of
profits into
others,!
many
that of latent obso¬
particularly
lescence.
possibility.
a
Seventh, is the consciously pro¬
ues.
and
The persistent rise in stock mar¬
financed
earning
and
price break sufficient to con¬
A
captured substantial shares of the
market
only two facets of
growing industries
amined, there are
power.
panies (as already noted), fibre
glas, detergents, synthetic glyc¬
erine, numerous domestic appli¬
ances, and tractors afford an idea
of the extent to which existing
versely affected industries — tnat
to say those industries with a
is
names
importance of the dominant com¬
chemical
stock prices
prices,
fluorine
chemicals,
by-products of oil com¬
smaller
high
remarks.
in these
covered
further
exert
/
-
carefully.
most
economy.
by the company, or by
representatives
of
the industry
prepared
the
investor
for
the
shock
of the decline in selling
noted. Though
the subject of
have been ex¬
servation should be
statement
propellents,
The increase in
minimum wage will probably
steady
the
underlies
truth.
underlying
the
Nylon synthetic fabrics, synthetic
polymers (in rubber, fibers and
Growing Companies in
Growing Industries
non
of
gestive
page
1955.
Thursday, March 3,
.;.
industry need not be* perpetuate such a dole system
gargantuan in siee. .A* dominant- with its mutually harmful politi¬
company in a small industry may, cal and economic connotations.
be
an
relatively^small' in
compared with
in
pany
Rohm
Fome
Filtrol in catalysts;
are
and
as
com¬
industry..
large
a
examples
sales,
secondary
a
in
Haas
its^field. of
Trade, not aid, is the best way
gap—and it is
to close the dollar
essential to give
American manu¬
farmers
and
facturers
fair
a
compete in the world's
chance to
of motor:
required the
million., dollars
each
deliveries
vehicle
production of $3,600 in our pulp,
mills —$8,500 in our paper and
board mills:—and $10,100 in our
.
plants.
On.
1953 exports of
$1.4 billion in motor vehicles re¬
quired
production in our pulp
products
converted
this
basis,, the
and
miUion—in
of $5
mills
and
by
million—
converted
products
our
of
manufacturers
vehicle
motor
paper
our
mills of $12
board
If
million.
$14
exports
to
were
by roughly one-half to their
fall
levels, the required produc¬
1950
tion in
fall
pulp mills would also
our
by some $2.5 million—in our
than
mills
board
and
paper
by
more
$6 million—and in our con¬
products plants by $7 mil¬
verted
lion.
The
Department
of
Commerce,
indicates that electri-:
and industrial ma¬
chinery exports accounted for a
substantial portion of our indus¬
study also
cal equipment
production. These exports,
with motor vehicle ex¬
try's
together
made
ports,
total
of
one-quarter
up
merchandise
American
ex-1
Any significant de¬
seri¬
ports in 1953.
cline in such exports would
ously affect our sales receipts.
for
If,
American exports
underlying causes, it is sug¬
were
to drop to 1950 levels, our
Danish blue cheese, for example,
gested, are the following:
own
export sales would decline
chorine end products. *
the Danes
deprived of this
First, is the institution of na¬
by
one-half
to
approximately
The next facet of the subject means of earning dollars—stopped
tional collective bargaining. This
$100 million. Our indirect exports
is concerned with price instability.
buying American coal and turned- would also decline by an esti¬
method
of trading
between the
There are many physically, grow¬ to Poland. By denying foreigners
employer and the employee
is again
operated" to
benefit
the ing industries that occasionally- a fair chance to sell in our mar- mated $32 million. This total de¬
cline of $132 million would- be at
spreading.
It replaces the bar¬ dominant well financed concerns.
lose their earning power. The eco-*
ketj we inevitably deny our man¬ least four times the value-of du¬
gaining between individual em¬ In the postwar years they have nomic doctrine that calls for
price ufacturers
and
farmers
a
fair
tiable imports of paper and paper
ployer and individual employee. been able to secure funds for their
stability in an industry controlled Chance to sell in foreign markets.
National collective bargaining re¬
products.
<
expansion from retained earnings
by a few concerns is riddled with Worse, we unwittingly force our
quires the payment of the same and depreciation allowances. Their
I think these examples pose for
many exceptions. 1 In the
1920's allies into closer ties with the
wages
by large and small em¬ adequate
all of us a very real issue regard¬
and
even
substantial and 1930's such physically ex¬ Communist world.
ployers, and by high cost and low supplies of working capital have
ing the self-interest of our indus¬
panding industries; as newsprint,
The
with
the
enterprises.
•'
Fifth, is the Federal system of
taxation.
The
high
corporate
profits tax, combined with the
even
higher excess profits taxes
id a number of postwar years, has
larger
chemical specialties; iHooker Elec¬
tro-Chemical
in
chlorine
and>
When
markets.
example,
excluded
we
—
;
cost
employers.
payment of the
efficient
and
to
It
requires
same wages
efficient
the
to in¬
been
supplemented
curity
large; se¬
by
The
issues.
young
and
and
rubber
paperboard
were
boxes,
unable
us
realize
in¬
to
empfoy-
growing concerns in the growing crease profits.
Many companies
and to an increasing degree industries have a difficult time in
which in the 1920's were unable
relatively experienced as well securing working capital after the
to convert their sales expansion
as
to
relatively
inexperienced payment of their heavy tax bills. into
profits and investment values
employees. The ability of a small The failure of many of the new
fell into financial difficulties in
growing company to secure em¬ and speculatively financed com¬
the 1930's. In the post-World War
ployees,
perhaps
non-union,
at panies in the postwar years be¬ II
expansion a number of other
lower wages, thereby reducing la¬
tween 1945 and 1951, gave further
growing industries have been un¬
bor costs, is reduced. Such a com¬
support to the comparative ad¬ able to transform their rising sales
pany can no longer offset largevantages within a particular in¬ into rising earnings.
Since 1952,
company
competitive advantages dustry
of
the
well
established for example, the expansion in
with lower labor costs.
companies.
ethical drugs in many of its phases
Second, is the legislative man¬
Sixth, another powerful factor has been accompanied by lower
date both on the national and on has
grown
largely out of
the earnings and lower market values
the state levels for the payment forces
already
mentioned.
In¬ for its securities.
The same has
of minimum wages.
Here again creasingly large proportions of the occurred in alcohol and filament
can
indeed,
to
More
and
section
the
of
must
pay
wage
to
their
The
to
given industry
at
75b
an
a
minimum
hour.
It
the
wages
to
is
the
regardless
of
inefficiency.
or
now
proposes
minimum
wage
hour to 90b
an
hour.
however,
sup¬
considerable body of
pressing for
are
wage
of
proposed
coverage
$1.25
also to
of
consider
this
research
products
ing talent
the
and
develop the
engineer¬
the
necessary
to
fabricate
necessary
problem
crepancy
this
for
cause
dis¬
between increasing sa^s
declining
of
causes of price
and
is
earnings
price
emergence
own
industry.
million Ameri¬
our
three
including some 10% of our
industry's employees, owe their
sectors
Many
exports.
jobs to American
manufactur¬
of American
agriculture sell a large
part of their output abroad. These
people — manufacturers, farmers
and wage-earners — are vitally
ing
and
are
substantial
paper
customers
of
the
industry. The level of their
exports and the size of their pay¬
checks
ference
make
in
a
the
considerable
amount
of
the
The
wars.
wars are numerous
year
growing industries,- and brought
out by existing concerns, is sug¬
was
the
tims
the decline in
more
than 90% in
price of penicillin.
were
concerns
Commercial
Solvents,
den
The vic¬
the stockholders of such
outstanding
as
Merck,
and
of
domestic markecS.
own
It
Hey-
Chemical, among others.
No
able
rect
our
million—a
not
inconsider¬
to
seems
me
that
the
threat
foreign competition to our, in¬
dustry has been greatly exagger¬
Let's
ated.
duties
the direct exports cf our in¬
were
well in excess of
perhaps classical in the extent of
movement,
preservation and growth of
our
paper
Last
Thus, freer
has become essential
to the
again.
commer¬
ex¬
trade
dif¬
trade.
our
world
In
on
the
half
look
record
1930's our
and board imports
paper
reduced by
of
one
we
one
cent
per
imports
about
from
per
able domestic
two-thirds.
dutiable
process,
increased
think
the
at
Since the early
stake
in
few months of
restrictions.
trade
can
buy
imports require
present Amerir-
of
liberalization
significance of
our
re q u
that foreigners
to
Increased
cial
funds
a
dollars
earn
ports.
full
$200
its
exports
creased imports so
can
levels of
i r e in¬
High
industry.
our
American
less than
ceedingly sharp eye on their de¬
velopment.
Most significant, and
well
to
have
world
profits and jobs
stantial sales and
beyond the direct exports of our
own
industry to appreciate the
established
The
American
of
have been
in
trade.: High levels
exports mean sub¬
world
in
try
They
important to all of us here.
dustry
gerial
In¬
major
of
cans,
and the investor must keep an ex¬
possession of the
and the mana¬
and scientific abilities are
enterprises
The
to
than
requires large in¬
equipment
vestment.
to
The
thereby able to achieve powerful
differential advantages over their
smaller competitors.
A sketchy list of newer prod¬
ucts
representative
of
rapidly
variety chains, drug and
chains, among others, will
to
new
control.
per
stores,
have
scientific
their
ex¬
minimum
the retail industry.
under
ones
are
all
important Ameri¬
products they buy from us.
I am
suggesting that we look
Impact of Price Wars
by existing companies, or of new
vestors in securities of department
shoe
rayon.
controlled
minimum
a
officials,
ported by
plant capacity devoted to the man¬
ufacture of new products in the
least
political opinion
tend
larger
growing industries
employees
increase
a
economy,
efficiency
Union
even
national
Administration
from
a
a
frequently in
how
exports are to our economy—
ees,
all employers in
if
wonder
sometimes
I
paperboard,
to
one-
slightly
cent of compar¬
production. I should
would have considerable
difficulty convincing anyone that
our
industrv
has suffered from
indi¬
tariff
exports — occurring through
industry's sales to American
reductions
dutiable im¬
ports.
sum
in
itself.
But
our
producers who, in turn, export—
are
also significant.
on
Moreover, I do not see how our
industry
further
could
tariff
suffer
under the
reductions
recom¬
President Eisenhower.
amples of the importance of our The present duties on an esti¬
indirect exports—based on a De¬ mated majority of dutiable paper
imports are already at the mini¬
partment of Commerce study.
This study shows that in 1947 mum rates which would be alLet
me
give
you
a
few
ex¬
mended by
Volume 181
Number 5408...The Commercial and Financial Chronicle
lowable under the pending legis¬
lation. True, duties on other items
be
could
slightly reduced — but
imports represent only a
negligible proportion of domestic
such
output.
Indeed, I doubt that
even
depression and
ing
on
and paper prod¬
paper
ucts would have very much effect
domestic paper production.
on'
The
fact
sharply contract¬
Then
we
NASD Committee
all
were
being hurt—and not only in news¬
print. Kraft paper, despite tariff
protection, sold at or below the
price of newsprint.
the complete removal of all tariff
duties
markets.
I
that
suppose
could
the
recapture
American
industry,
Bank and Insurance Stocks
By ARTHUR B. WALLACE-
we
now
large share of
This Week
market
has
become
tive
that
that
competi¬
impervious
strongly
so
it
our
is
highly
would
we
accom¬
We would wreck Canada's
largest dollar - earning industry.
This,
in
turn,
would
force
ada,
tition.
I
think
that
should
we
increase
some
recognize
in
foreign
competition might well have de¬
sirable results.
In general,
eign competition stimulates
for¬
us
to
greater
and
efficiency, higher quality
more
diversity. A good exam¬
ple
of
this
is
what
happened in
the newsprint field, which usually
is cited to show the
by; tariff reduction.
there
that
three
are
injury caused
I suggest that
other
conclusions
be drawn from the
can
news¬
com¬
than
ments from
competitive
adjust¬
domestic competition.
I
daresay that those American
newsprint producers who had a
competitive struggle because of
efficient
more
ducers
ilar
would
Canadian
have
sooner
now
those
as
producing newsprint in the
Southern States.
This happens
day in our economy. It has
happened and is still happening in
every
domestic competitive adjustments
in
wrapping and other papers,
which
have
tariff
protection.
And
there
is
also
ebb
an
and
flow
of competitive adjustments
duty-free items.
American
on
newsprint
duction
and
has
cause
wood
pro¬
expanding be¬
domestic
produc¬
meet
can
pulp
been
new
tion
tition and still
foreign
earn
deliberate
a
and free choice to enter the
benefit
tariff—
of
all advocate.
be
a
The
second
conclusion
is
that
foreign
competition
in
newsprint stimulated us to im¬
and diversify our products.
prove
In
this sense, foreign competition
serves
the same purpose as do¬
mestic
competition—both promote
the most efficient
and
man
physical
of
use
hu¬
our
The
resources.
of
movement
labor, capital and
a continuing en¬
deavor to improve production and
in
management
reduce
stimulus
of competition, is the
vital and
dynamic element in the growth
and efficiency of our free enter¬
prise system. Our economy—and
indeed, our own industry — has
convincingly demonstrated its
flexibi7ity and adaptability in ad¬
justing to competitive changes,
including those occasioned by tar¬
iff
under the
costs,
reduction.
Perhaps no indus¬
try in America has faced more in¬
tensive
the
foreign
competition
than
industry faced in the
newsprint situation. Yet we per¬
paper
contracting
because we
diversified—and
we
grew.
We emerged from the adjustment
period far stronger and more vig¬
than
orous
both
of
manufacturers
sell
can
ucts they can
buy from
industry and
our
of
our
mizing
economic
our
raise
of
this
our
has
third
expanding
of us—but
is bad
is good for all
contractirg economy
a
The removal
us.
newsprint
before
tariff
World War I did not immediately
create
total
imoorts
and
increased, and
has
operated
place
exnorts
the
as
as
as
our
have
free
world
at
higher levels of
economic activity.
Fundamentally,
our
industry grew because the
American
world
It
and
economy
economy were
clear to
seems
in
our
fact,
domestic newsprint, production
In
producers.
our
to
do
the
free
expanding.
that
me
interest—as
it
is
industry—
promote the
contribute to such expansion.
Restricted world trade will cer¬
tainly
contribute
to
economic
contraction. Freer world trade
contribute
a"d
to
the
solidar'tv
alliances
of
which
can
strengthening
free
our
shield
world
all
of
us
from war or creening communist
imoerialism. Restricted world trade
will
certainly contribute to
weakening and disruption of
alliances
and
than
in
1913
came
not
when
The
removed.
so
competition
was
as
the
real
much
29%
^>nd
"If
Eisenhower
fail in
we
■*Tr^>r.
said
<5
last
Pres¬
year,
trade policy we
Our domestic em¬
our
fail in all.
may
ployment, our standard of living,
our
security, and the solidarity of
the free world—all
Let
ties
dutv
from
from
was
foreign
subsequent
other's lines.
*
The
basic
such
made
•
JW
of
an
the
as
reserves
put to work in the securities markets
are
to increase
earnings. Thus there are two sources of gross income:
premium writings and incofrie from investments.
the
In
simplest form, premium writings are used, first, to
increase unearned premium reserve where this is required, to
pay losses and the expenses incident to settling claims, and finally
to pay the general expenses of the underwriting end of the enter¬
prise. The net 6f this is the statutory result, and this may be a
profit or a loss depending upon the measure of underwriting
and
losses
applicable
not fail
us
—
but
involved."
or
our
exercise
responsibili¬
them
to
minus
expenses
to
the change in the unearned premium
under consideration.
By combining these
plus
or
the
period
the
combined
two ratios
determined, and this
deducted from 100% gives the underwriting profit margin.
This
is a good measure of the success of the company's underwriting
activities, particularly if it is taken for a longer period so that
years
of profitable operation may be offset to years in which
losses
loss
factor
and
enters
into
most
authorities'
calculations
earnings. This is
underwriting
of
in
the
period
decreased.
the
of
equity in the change in the unearned premium
an
This also may
reserve.
the
minus, depending
or
premium
reserve
has
generally accepted
equity figure
of fire companies.
case
was
share
and
the
$99.50
per
share, plus accrued di¬
1, 1955.
vidends-from Jan-.
proceeds from the sale
preferred
and common
provide ad¬
ditional-electric facilities and for
The net
of
corporate
purposse.
To
growing demands for
electric
service in its territory,
other
authorities
it
a
assign
variable
experience
The
to
over,
basis
premium
the
be
say,
for
a
a
35%
period
from
Jan.
1,
1955
through the year 1956 will ap¬
proximate $45,000,000. It is estim¬
ated that $22,000,000 will be ex¬
pended in 1955 and $23,000,000 in
1956.
Upon completion of this financ¬
ing the outstanding capitalization
the company
will consist of
of
$106,142,500 of funded debt; 237,259 shares of $5 preferred stock;
mulative
assigning
is that in
reserve
or
or
of
one
on
this
equity
general
a
basis
a
of
or
in
sense
could
the combination of the statutory
(or minus)
some
the
the
company's
following
Purchases
and
Division
of
tion
Stock
of
officers
Sales
Wall
of
the
Tabulating
Street, Associa¬
-
change
the
in
allowed
to
Exchange
Firms,
have been elected for the term of
President—Anthony P. Rizzuto,
Fayden, Stone & Co.
Vice-President
—
to the shareholder.
Vice-President
Albert
J.
Co.
Treasurer
—
Carmine
Carmello,
Asst. Treasure,—John E.
one
that
dividends
are
against
holds
paid
subject to
—
Leon
—
15%
Jacobs,
on
sense
of
^enneth
L.
Paine, Webber, Jackson
Curtis.
Soga, of Laidlaw; & Co.
tax
a
bonds.
rate
This
arises
Michael
company
from
the
retail
to
other
15%.
In
its investment
only
the
income
from
common
this marks
one
in
largest
198
communities,
which
of
may
must
involve
boro in North
lina.
of
Carolina
Estimated
the
area
our
and Flor¬
South
total
excess
Caro¬
population
served
now
is in
company
by
the
of 2,000,000.
stocks
and
Govt. Bond Portfolios
corpora¬
a
Sources of Gross Income
only
portfolio
the
In
BREAKDOWN OF—
16 N.Y.C. Bank Stocks
general
Circular
be
relatively
liquid
(workmen's
as
a
the
multiple-line casu¬
claims
compensation,
for
against
it
request
on
Laird, Bissell & Meeds
York
example)
New
Members
American
120
whereasTlje claims against a fire company are for property losses.
in
in
Sumter
and
BROADWAY,
Telephone:
appear
Raleigh,
are
of the differences between fire and casualty
persons
Editor's Note:
at
the
Asheville, Wilmington and Golds-
Members
writer
com¬
electric* service
renders
pany
fact
corporations
of
en¬
substantial difference in
companies, for by the nature of its business
alty
—
taxable
by domestic
a
be
vulnerability that develops in major bear markets.
Norako,
Secretary
may
primarily equity holding
a
activities the management thus must choose between paying
DIBon & Co.
Secrpfarv
Financial
assessment
tax
that
This gives
The
selling electric energy.
Tax rates applicable
statutory gain and those applicable to the investment income
—
of Richard J. Buck & Co.
Secretary
the
with investment .operations.
differ widely; and there
tions
Raymond
Schibowski, of Hirsch & Co.
MiJJcr. of
to the
utility
electric
gaged in the business of generat¬
premium
the unearned
earnings before Federal income taxes.
versus
Fisenberg, of Bache &
Asst.
total
may
year:
2nd
of the expenses connected
& Light Co.. is
Power
operating
4,600,000
stock.
common
off
run
is added the income from investments, net after deduction
reserve,
of
and
ing, transmitting, distributing and
underwriting result plus
the equity in the change in
stock;
Carolina
treat
the compahy's exist¬
be
cu¬
50,000
cumulative
series
new
preferred
40%
ten-year period.
a
stock;
preferred
of
series
of $4.20
shares
50,000
For casualty units
equity in the change;
calculated
five-
estimates that its
expenditures during
company
construction
the
ence
The
the
meet
an
some
as
the
>
shares will be used to
whether
on
increased
is
priced at $24.50 per
preferred stock at
stock
shares
The
change in the
To
Elects New-Officers
the
Inc.,
quickly oversubscribed and
books closed.
The common
shares
be plus
unearned
to termination to show this amount of recovery
P. & S--Tab Division
&
is
statutory underwriting profit (or loss) another
ing business could be reinsured
1st
ratio
expense
sustained.1
are
In addition to
wisely
courageously for the benefit
of our industry and our nation.
of
for
reserve
were
Merrill
Beane
Co.,
&
Dickson
S.
R.
and
&
Fenner
Pierce,
1
insurance company's business is its
However, it Ijolds large amounts of
unearned premium and other reserves, and
part
on
writing groups headed by'
Lynch,
*
'
of Carolina
(no par)
Light Co., which were
Feb. 25 by two under¬
&
Power
operation.
of these
some
'*
•
$4.20
ferred stock
'
*
'
stock (no par) and
of
shares
extended coverage, .auto¬
the principal casualty
Among
shares of
50,000
cumulative pre¬
505,000
of
Offerings
common
fire insurance carriers are
workmen's
are
and
higher
difficulties
household
our
increase the danger
r-t
ident
the
Gude. Winmill & Co.
1926
hail.
and
its
and
Lynch Groups
Shares
Sell Utility
compensation, auto liability, liability other
than auto, auto physical, surety, fidelity, accident and health.
But companies in both fields are writing more and more of the
an
kets.
lion tons in
theft,
Com¬
Finance
the
of
Merrill
to
The expense ratio is the percentage of underwriting expenses
net premium writings.
Earned premiums are net premiums
within
omy
ex¬
1.7 mil¬
is
econ¬
to
expansion of the American
of Eastman,
production of
operation
of
economy
expanding free
world economy. Freer world trade
utmost
our
an
panded significantly after World
War I because of exoanding mar¬
Our
and
New
Co.,
Chairman
underwriting activities of the
company.
The so-called loss ratio is arrived at by,relating the
losses to earned premiums.
competitive difficulties for
domestic
lines
fire
funds
an
economy
for all of
the
is that
conclusion
mobile
paralleled
took
toward
Among the lines embraced by the
fire, ocean marine, inland navigation,
convincingly
reduced;
&
heim
DuBois, WertYork City,
C.
Allen
mittee,
mittee;
we are beginning to see
within fleets.
us
say
against the burning of a home,
contents, and the extended coverage risks.
underwriting
been
v
E.
members, and
looking
move
constantly increasing earn¬
ings by our employees. This un¬
growth
fleet
numerous
let
with
tariffs have
existing units.
up
siz!es
write package policies that will cover the insured on several risks,
products.
38%—-with good profits and
lines, others casualty-surety lines.-In
wholly-owned affiliates were formed for the
new
"of various
are
Another
More¬
demonstrated since World War II.
Between 1946 and 1953, our in¬
dustry's production increased
some
aggregations of
or
parent' company, some of the sub¬
a-
what may be a trend toward mergers
efficiency—
been
for
need
prod¬
our
more
All
Wood,
Harold- E.
Wood
&
Co., St. Paul, Minn.,
Chairman of the Board of Gov¬
ernors
of the National Associa¬
tion
of
Securities Dealers, and.
Chairman of the Executive Com¬
Harold
numerically, from two to six, or
even more companies: But recent
legislation in some states legaliz¬
ing multiple-line writings by single companies has lessened the
standards of living
and enable all Americans to con¬
economy.
The
Fleets
farmers
us.
by
C. DuBois
Allen
Harold E. Wood
-the writing of so-called fire lines of
ago
while other top companies bought
purpose,
which,
more
years
units managed
instances
some
freer world trade—by maxi¬
over,
will
and
abroad—the
of
Insurance
sidiaries underwriting fire
turn, will promote the growth
of our industry. The more Amer¬
one
whole
of
the benefit
before—to
affiliated
in
ican
few
a
intensively, it led to the formation of "fleets,"
economy.
Freer world
will promote the expansion
economy
the
for
of casualty classifications by one company was not
permitted in most states: As many companies sought to sell both
forms of coverage, and in the- process
use
their agents more
pends upon the expansion of the
severed—we maintained ourselves
—we
Until
American
American
Philadelphia Contributionship
by Fire, founded 1752.
e.g.,
coverage and
All this adds up to the fact that
future of our industry de-»
the
go
we can
Houses from Loss
to everybody.
paper
in
can
greater
titles,,
the
mar¬
and this is the economic freedom
we
situation,
sell
compe¬
profit. Such
a
producers have made
ket—without
else
economic
American
such
—
many
would
everyone
later
or
efficient
more
competitors
sim¬
a
result,
a
society, and with
could not get along
back more than two
to
we
boast one leading company
that started business more than a century and a half ago, with
others of 100 or more years-of activity.
Some of the old names
were
more
descriptive of the business than are many- present
production—lay
off employees, increase
prices, etc.
In the final
analysis, our indus¬
try
would
suffer
along
with
sume
struggle
with
had
pro¬
As
industries
essential
an
centuries; and in this country
forced to cutback
of
The first conclusion is that
petitive adjustments from foreign
competition are basically no dif¬
ferent
goods.
can
American
trade
print experience.
largest export customer,
our
been
long
greatly complicated economy today
without it.
For its-origin we have to
our
to curtail its purchases of Ameri¬
~
,
has
Insurance
Can¬
to any foreseeable foreign compe¬
.
Insurance Stocks
—
[FIRST OF TWO ARTICLES]
plish?
is
Chairmen
sufficiently high
a
What
tariff.
with only a few minor exceptions,
even
a
newsprint
by reimposing
39
1051
The second article in this two-part
issue of March 10.
series will
Bell
(L.
A.
Stock Exchange
Stock
NEW
Exchange
YORK 5, N. Y.
BArclay 7-3500
Teletype—NY
1-1248-49
Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
40
The Commercial and Financial Chronicle..
:1052-
-
competing
Continued from page
20
prior
execution
The SEC and
Although
tice
to
it
rarely been necessary
a drastic remedy.
processing by
rul¬
administrative
the
prac¬
such
invoke
The
in
statements,
has
in
of
in.pn~i.on
the correction
an
for
courts
the
misleading
has
Commission
the
seek
to
power
staff
administrative
and
Commission usually
result in appropriate and timely
disclosures without the necessity
ings
cf
the
by
in
these
the
takes
execution
of
Neither
sion
the
for
for
of
Commis¬
the
nor
you
is
Involved
Are
however, that
thrust and parry in a contest
control
are
merely matters
the Securities Exchange Act
1934
and
ihc
Comm.ssion's
can
rules
proxy
The
assume,
problem involves some con¬
guarantees,
such as
stitutional
freedom
of
of
some
should
free
be
cf
if
hand,
to
expect
advantage
and
of
freedoms
traditional
the
not
unfair
take
to
dealing
other
the
On
afford
and
fair
of
measure
contestants
public by using the press as
to
accomplish indirectly
tool
a
that
the
which
hibit
if
A
done
office
somewhat
election to
is
an
A good deal of
candidates in politi¬
political office.
a
freedom
cal
for
has
contests
in
American
sion
has
offices
freedom
lieved
believed that
always
issues
be¬
and
the
that
involved
be
to
corporate
likewise be
should
define
to
in
of
control
there
Commis¬
The
life.
for
contests
traditional
been
v/ide range of debate, and argu¬
should
ment
testants
left
be
subject,
the
to
con¬
however, to
the
rule which springs from our stat¬
ute
that
investors
misled.
The
rules thus
that
ment
see
by
proxy
the
assure
disclosed, but
are
wide
a
be
not
designed to
are
basic facts
to leave
must
Corrmission's
area
for fair
tensity
and
New;
of
contests
proxy
publicity,
Central,
York
in¬
as
in
the
American
Woolen and New Haven cases, the
Commission
is
questions
to
1
as
with
confronted
when
solicitation
egins and what constitutes proxy
Let
clude
panied
by
c-f proxy,
(2)
not
or
execute,
a proxy, or
ing of a form of
in¬
for
a
accom¬
in
form
a
request to
any
to
yoke
rity
not
de¬
to
request
or
included
or
is
rules
proxy
"(1)
any
whether
proxy
cute
"solicitation"
the
exe¬
to
or
re-
(3) the furnish¬
to secu¬
under circumstances
holders
proxy
reasonably calculated to result in
the
procurement of
addition,
proxy."
a
In
of
part
continuous
a
ending in solicitation
prepare
The
of
the
and
plan
whicn
for its success."3
way
interpretations of the courts
the
meaning of the term "so¬
licitation"
so
as
to
include
activ¬
ity preceding the formal solicita¬
tion
are
extremely
regulation
In
a
of
proxy
Proxy
entation
corporations,
Solicitations
one
as
of
soon
our
as
large
there
are
provide se¬
fair pres¬
nec¬
informed considera¬
ultimate
decision
by
and
tion
information
the
of
a
to an
essary
practice
administrative
Commission
insist
to
the
for
that
pre¬
be filed pur¬
literature
rules before
its use, and, as I indicated earlier,
this
administrative practice has
the
to
suant
received
tions
proxy
judicial support.
Much
the
of
apply
the
to
considera¬
same
in proxy
use
of reprints of newspaper
contests
magazine stories and articles,
published reports, and letters. In
some cases the reprint sought to
control
of
corporations,
aware,
at
in respect of
of the large
one
press
conferences
vision
for
press
and
tele¬
requests
of
means
radio
and
con¬
views
itself
such
Frequently
solicited by the
by
of
views
testants.
are
intensely
becomes
the
in
interested
the
the incep¬
well
are
you
press, particularly
tion of a campaign
Apart
the free¬
dom
of
the
press,
to which I
alluded a moment ago, the Comniks.'on has never questioned the
news
the
from
programs.
question
of
propriety of contestants to an¬
inquiries made by the press
swer
which
have
"planted"
or
contestants.
We
recognized that
such
to
by the
always
have
requirement
any
first
be
answers
Commission
stimulated
been
not
induced
or
with
filed
or
would
impractical.
As
even
though the
to
unrequested
may be
actually
com¬
be
the
hopelessly
consequence,
a
given
inquiries
answers
press
of
soliciting
character, they have not been
and are not required to be filed
with
the
Commission.
obvious,
could
the
however,
be
take
to
ostensibly
inquiry
a
It
easy
of
advantage
under
a
care¬
a
skill¬
fully maneuvered part of
ful campaign.
What
that
is
when
questions
to
required,
be
must
be
sion.
Also,
in
is
a
a
in
with
newspaper
to
magazine
radio
soliciting
or
inclusion
for
or
or
it
Commis¬
the
release
intended
efforts,
prepared speech
a
television
proxy
of
sought
connection
soliciting
filed
prepared
is
answers
distributed
formal
a-
transcript
a
and
with
is
such
however,
or
program
material
if
it
condition
public
opinion and the opinion of stock¬
holders
lishers
of
such
speeches.
We
consistently
terial
the
favorably .to
releases
have,
held
and
therefore,
that
such
filed
be
must
pub¬
with
ma¬
the
Commission for processing by the
staff
prior to
not. caused
its
timing problems,
a
to
newsworthy,
be
prepared
news
seminated
cases,
This
use.
must
.
telegraphic
even
release,
be dis¬
promptly.
In
where necessary, we
permitted
has
where
circumstances
rules
which
seeks
its
to
had
side
one
the
or
as
if
omissions
soliciting
rules
could
be
circumvented and abused
which
proper
rial
as
would
be
misleading and im¬
soliciting mate¬
freely circulated or
proxy
could
be
tion
therein.
The
not
only
be
violation
a
the
of
or
in
relevant
partisan
proxy
with
the
Commission
sidelines
its
in
fights. Con¬
policy of the
remain
to
Commission
to
cedures which have
Division
or
objectionable.
j
the
from
or
would
jy
,
be
,
The objection, of course, has ap¬
use of material
plied only to the
in
the
to
or
the
form
of
would
another
Commission,
be
form
in
data
same
otherwise
if
objectionable
and
objection to
no
the
of
use
communication
a
the
from
there
un¬
soliciting
as
material.
in
a
engage
proxy
made
pending
proxy
3 SEC
Okin,
2,\d
to
contest, public state¬
by the contestants
generally made with the im¬
.
ments
are
intentions
v.
1943);
SEC
solication in mind,
132
v.
F.
for control
2nd
784
(C.
A.
Topping, 85 F. Supj.
OJJS. D. N. Y. 1949),
ment
of
of
material of refer¬
Commission.
the
At
the
the
Commission
that
has
not
behalf
on
used,
material
of
prior
in
material
form
side
or
the
tinized
reprints
its original
subject to the
published
a
by
be
one
proxy con¬
Commission
has
scru¬
such material in the
it would scrutinize
way
proxy
intended to
the other in
or
Fur¬
use.
in
which is
circulated
if
soliciting
as
its
to
cr
reviewing
which
not
was
rules but
test,
filed
be
thermore,
material,
prepared by
the contestants,
of
must
such
same
material
originally prepared specifically
proxy soliciting material.
as
The
one
material
side
in
the
or
emanates
other, stockholders
position
a
themselves
to
possible
weigh
bias.
for
Where
this
such
to
determine
material
has
in
whether
fact
been
approve
or
Exchange Act and is compar¬
involved of the respects
corrections or
changes should
be made.
Our
willingness to comment on mate¬
in which it appears
rial
issues
new
securities
of
Securities
the
cf
Act
not
does
under
The
1933.
has
to
distribute, and, if
this
information
so,
in
his
proposes
to disclose
soliciting
In
instances
some
contest
proxy
letters
missioners5
members
parties
have
in
a
addressed
telegrams to the Com¬
or
or
Division staff
mem¬
referring to the staff
am
Division
of
the
Commission's
wise
such
staff
communications
soliciting
material
as
use
of
proxy
containing, .as
to
it
So,
the
the Exchange Act,
under
Commission
not
does
approve
soliciting material. Accord¬
ingly, references in soliciting ma¬
proxy
terial
state
has
or
Commission
the
to
which
imply that the Commission
or
"cleared" or
"approved"
"sanctioned" the material
are
con¬
sidered objectionable. In this con¬
nection, I should mention that the
proxy rules contain no
requirequirement that proxy material in¬
clude
legend indicating that the
a
In
the
material. This non¬
become foreshort¬
"approval" and gradu¬
of proxy
to
tend
of
or
material
the
prevent
does
mis¬
of
use
disapprove
or
statements
by opposing sides in proxy
furnished
to
the
-
Still
Role
stood and
holders
security
those who prepare
and distribute it.
Commission
ally the idea has become accepted
that we "approve" or "refuse to
fi¬
is in
prohibition, all of which is
material
fact
a
misconception
a
One
■
*<
is
prohibits the
rial;
A
that
the
power,
third
which
of
administration
Misunder¬
20
prohibit the holding of a
or the voting of proxies.
misconception is the idea
understood
the
of
of
Securities
new
security
issues
statements is still mis¬
and
misconstrued, not
only by the public generally, but
also by many writers and others
who should by now know better.
The Commission administers the
integrity of the
rules
We
statutes and our
in terms of these
do
not
to
seems
held
be
litigation
in
that the
duty to partici¬
a
initiate
to
or
litigation for reasons and con¬
cerning issues which have noth¬
ing to do with our administrative
responsibilities.
A
The
express
Basic Truths
Few
following
based
truths,
administer.
standards.
opinions
con¬
are
few basic
a
statute
the
on
Securities
The
we
and
Exchange
Commission
has
no
under the law to and does
power
not approve
terial,
nor
of proxy
ing
an
the use of proxy ma¬
it prohibit the use
can
material without obtain¬
injunction in a Federal
Commission
The
court.
holding of
prohibit the
cannot
share¬
a
holders'
meeting, the Commission,
cannot require the postponement
of
a
shareholders'
meeting, the
Commission
cannot
compel
or
prohibit
the
functions
of
voting
to
•
proxies.
these
perform
the
in
rests
courts
Commission.
court action or
participate in a court action only
when a problem of construction
alone, not- in
years
Commission's role with
to
is
by the
can
administrative
some
Commission has
pate
mate¬
proxy
misconception
Commission
exercise
meeting
of
use
second
We will
and proxy
function.
our
or
popular
Jurisdiction
Misconstrued
Notwithstanding
Acts, the
of
misconception
the Commission approves
that
A
that,
and
to approve"
"refusal
Commission's
The
proxy
that the Commission does not ap¬
prove
has
to
a
considered.
be
approve
representations
future revision of
requirement will
any
the rules such
scrutiny
not
does
for
to
universally
of securing from our
expression of objec¬
non-objection prior to the
approve"
that
naturally
quite
almost
some
or
nally,
of
publicly released. The
people
followed,
new se¬
does, under Section 23 of the Se¬
curities Act, is a criminal offense.
reference
material.
led
.
custom,
approve
registration statements or
curities and to represent
or
he
assist
fact
in
and
registration statements pertaining
must rest upon
which
one
advise
to
persons
ened
followed the practice of inquiring
of a participant in a proxy con¬
test whether or not he has insti¬
material
prevent
mislead¬
procedure—the
followed—is
is
objection
the correctness of the information
able
other
which
able to its position with respect to
assist them in appraising the ma¬
terial. Thus, the Commission has
paid for the preparation
of apparently independent favor¬
to
courts
of inadequate or
use
the
with
originated, inspired, or paid for by
one
of the
opposing parties, so contests, I wish to emphasize also
that any
lack of objectivity or that the Commission is not re¬
independent
comment
in
the sponsible for the accuracy or ade¬
presentation of the material may quacy of the material filed with
be spelled out to shareholders to it. The ultimate responsibility for
gated
Federal
the
it
pursuant to the proxy rules. The
Commission's
position
in
this
made
have
tele¬
having-literature, used by the
in
ards
not
does
disapprove material filed
apparently independent magazine, leading facts or to correct them
but it cannot guarantee such re¬
newspaper or investment advisory
articles are used, however, it is- sults. As a corollary to the fact
necessary
institute
and
us
Commission
made.
from
with
filed
proceedings to compel com¬
pliance with our requirements. In
other words, we might lie in wait,
so
to speak, and pounce on the
person who violates or threatens
to violate by bringing legal action
comply with the statutory stand¬
Commission
Source of the Material
-
point I want to emphasize that the
vouch
Where
'
*
court
Commission
bers—I
importance
terial
which
or
rules.
bound to seek to enforce
are
proxy
to
whether
to
.pur¬
ways
already appeared in publications,
the
preparation and release of
insisted
this
rules. There are two
in which this could be ac¬
complished. We could review ma¬
our
use
such
corporate manage¬
indicates
We
The
Commission is the question of the
to
for
success¬
years
many
have been brought to bear on
pose
the proxy
Material
A
in soliciting
been
so
ing information.
The Position of SEC in Use of
use
investing
Acts
Securities
the
the
Soliciting
the
to
fully aplied for
statutory
communications
facts
The. administrative l pro¬
public.
far
so
responsibilities
permit, the Commission has con¬
sistently taken the position that
the use as soliciting material of
as
Our
the
on
contests
proxy
,
announced
subject to our proxy
job is to require im¬
partial fair disclosure of essential
rules.
sistent
to security
approval by the
companies
respect derives from Section 26 of
cordingly,
presented
holders for their
rule$;<-;but it would in¬
evitably embroil- the Commission
proxy
Corporation Finance statutes, in accordance with the
phoned
version
of
the -release which, as
you know, has charge purpose the laws express, to se¬
to be
"filed" with us and have of
processing the proxy soliciting cure fair and adequate disclosure
processed it within a short period, material—for the purpose of
using for-rthe protection of the public
often the same day, of such "fil¬ such
communications as additional and. the public inyestor.- We are
ing."
enforcement
proxy soliciting material to be dis¬ concerned with the
Experience with many contests tributed to stockholders or other¬ of the statutes and ihaintaining the
a
to
project
material would
of such
use
the
accomplished
apart from the proxy rules. Ac¬
matters
or
party concerned in election of
directors or any other corporate
given publicity by the parties in
a
proxy
contest solely
on
the
ground that such statements had
been
disapprove
or
any
tion
had
approve
transactions
contests. It is not our func¬
champion, or to oppose,
proxy
with or vouched for the
partisan statements contained
agreed
material of communications to the
proxy
statements
Com¬
re¬
proxy
or
business
staff members have
ences
considered
individual
or
or
misleading
material.
easily
Commission
missioners
problem closely allied to the
question of the use as soliciting
material
or
cerning
misleading as submitted to stockholders for their
implying, contrary to fact, that the action. We do not take sides in
it
favorable
contain
viewed
self-serving
do,
has been considered
other
Obviously, such
could
statements
the
because
material
the
cause.
prints
when
a
frequently
application,
no
disseminate
to
considers
press
in fact is
its
in
proxy
but
or
been written
original form
had
which
released
are
spontaneous
which
story
news
a
not involved in the proxy
must
how
is
contest,
them.
the
used
be
Tne
when
campaign, especially
involving
one
important.
Commission
the
designed solely to
curity holders with
is
authority extends to.any
writings, whether or not they
strictly solicit
a
proxy,
which
"are
with
filed
be
prior to its release to the public
and that it conform to regulations
judicial deci¬
.in
that the Cormv's-
sion's
settled
For this reason it has been
liminary
they
declarations favorable to the user,
holders
security
assure
and
soliciting material. The rules
merely require that such material
through
sions it appears
fair
disclosure regarding the matters
on
v/hich they are asked to act.
to
rules do not pro¬
release or distribution
proxy
the
hibit
it
term
usefulness of the proxy rules
the
person
of
rules.
in
contest could
a
emphasize at this point
me
the
that
be
The
preliminary stages of
effectively destroy
the
at
magazine article written by some
soliciting material subject to the
fined
ture
litera¬
such
of
use
ing the material.
present
municated
great
proxy,
and
of
As
if, this is the basic philosophy.
In
of
opinion
and
the
and prospec¬
tive security holders to tne cause
cf the individual or group issu¬
public
align
opinion
that,
I
material
directly to
not the
or
Distributed
com¬
contestants.
is
This
rules.
proxy
be
As
campaign for
a
pro¬
contest for election to
proxy
like
rules
proxy
proxies
security holders, so long as in fact
the intent and effect of it is to
directly.
corporate
a
a
liberties
abused.
not
great
are
American
of the
bulwarks
and
speech
which
press,
be considered as
meaning of the Com¬
the
whether
to
statute.
that
under
proxy,
step in a solicitation of
a
mission's
Guarantees
of
form
a
properly to
are
true
Constitutional
cf
Problems
to
position that pub¬
lication
of
preliminary
letters,
advertisements- and prepared an¬
nouncements, even though neither
side
has
as
yet requested tho
sion
within
to the'courts.
recourse
eventual
form
a
unrestricted
induce
success.
Consequently,
situations the Commis¬
calculated
are
of
subjected to scrutiny pursuant to
the proxy rules.
Otherwise, the
Proxy Contests
and-
in the period
actual request for
parties
the
to
Thursday, March 3, 1955
k
of.
the
the
begin
statutes
a
rules' which
or
might affect their administration
is
involved
us
that
We
do
a
or
or
before
the
tempt
to
has
defend
not
ments
it appears to
when
violation
registration
courts,
occurred^
proxy-
nor
do
before
assert
state¬
statements
we
a
at¬
court
has complied with
attempt to do so
would Jbe administratively impos¬
that
the
person
a
rules.
sible.
To
The burden
is
on
the party
in
possession of the fac's to assert
the facts which support his con¬
tention
the
must
that
law.
In
always
he
has
be
not
violated
matters, it
borne in mind
proxy
Number 5408
Volume 181
that
the
only
The Commercial and Financial Chronicle
...
ones
facts
in possession of all the
in a position to secure
or
them
quickly
must
also
the
and accurately.
be
borne
institution
solely
the
of
It
that
mind
in
litigation is not
and
Stockholders
Commission.
asserting
false and misleading representa¬
tions under our statutes, and all
other
or
Commission
state
under
offenses
of
manner
sue,
may
laws.
Federal
The
maintain at
must
course
pel compliance
and
aid
the
to
necessary
appear
with
the
in
courts
com¬
statutes
this
pur¬
pose.
In the
ordinary situation where
facts,- accounting prin¬
ciples, or discussions of financial
or
business matters are at issue,
is
competent' and
at
some
staff
our
arrive
with
the
curing
working basis
involved in se¬
parties
what
able
fair
be
to
appears
disclosure.
As
mentioned
I
,in
ever,
times
a
some¬
develops an effort to
public attack upon the
a
of
ally such
an
power
even
neither
which
necessarily
questions whether
fact; not
which
by,
serious
in
are
inac¬
and
facts
neces¬
misleading. Usually we warn
against, .the use of such material
The
(3)
forthcoming.
in which
In
a
have been
we
basis
bodies
or
context
of
reference to indictments
or
charges
unproven
under
similar
or
circumstances
which
imply or infer conviction
guilt which has not in fact
or
been
The
(4)
(5)
should
fact of
as
be
clearly
opinion;
as
Resort is had, without
sup¬
porting facts, to personal attack
by
association
with
criminals,
Communists
references to ille¬
or
gal acts or events generally re¬
garded as contrary to the public
interest, or by the use of reprints
from
extracts
periodicals of
tory nature;
(6)
The
newspapers
and
generally deroga¬
a
use
terial;
Claims,
(7)
promises or pro¬
to
future earnings,
as
value
of
mere
conjecture
assets
results
on
distortion
or
or
of
the
of
stock based
or
reconstruction
past
operating
without
accepted ac¬
company
regard to generally
counting, statistical
principles.
This
in
the
Regulation
other
our
administration
X-14
applied
as
unnecessarv
impediments
essing
of
the
to
the
delays and
in
soliciting
the
proc¬
material
by
holders.
of
use
such
material
is
con¬
truthful
Also,
trary to the standards of fair dis¬
closure
unless
it
in
is
fact
true
not misleading and that such
and
if
material
used
must
sole
legal risk of the
posing to publish it.
mission
dom
Federal
that
person
The
pro¬
Com¬
free¬
injunction in the
an
Court
the
the
at
complete
reserves
to seek
be
it
should
standards
of
appear
rules
our
Out of this administrative prac¬
and policy has come the no¬
tice
we
material
of
fact
this
the
of
"prohibit" the
character.
matter
already
been
that
at
have
courts
Commission
later
or
date
will
appear
in
with the opposition
a
should
It
Commission
by
menting
upon
be
strued
its
is concerned
it
its staff in
or
failing
or
that
to
as
having in
of
comment
any
approval
release
or
diminished
in
the
sibility of
the
no
com¬
such material is to be
dicated
followed,
ings
the
will
ground
risks
of
adminis¬
court proceed¬
be
mentioned
resulted
from
experience with specific
in each
instance the
was
effort to hew to
an
for the
investing public.
Schneider, Bernet to
con¬
in¬
for
way
material
any
way
primary
having
respon¬
who
person
pub¬
lishes it.
Texas—As
Schneider,
of
March
&
Hick¬
Bernet
Inc.,
Southwestern
Life
Building, will become members
man,
of the New York Stock
Officers
of
the
firm
are
J.
Wes¬
E.
Schneider, Vice-Presi¬
Treasurer; A. E. Bernet,
Jr.,
Vice-President
and
Secre¬
tary; W. L. Jack Nelson, VicePresident;
and Morris J.
Keil,
dent and
Assistant
Secretary and Assistant
experience
in the administration of the proxy
rules
for
in
connection
control
cates
spect
that
to
statements
of
the
with
management
problem
potentially
of
contests
and
indi¬
with
misleading
omissions
material fact tend to fall into
of
several
general
re¬
of
one
categories:
The
slow
To Be NYSE Members
Stock
Exchange.
Milton R.
Underwood,
President, will hold
Exchange membership.
Other officers are Philip R. Neu¬
haus, Joseph R. Neuhaus, D. T.
the firm's
of the
Treasury obligations.
To be sure, there are buyers around
for the intermediate and longer government
issues, but they are
not very sizable under the
existing conditions and they are inter¬
ested
mainly in making purchases on a scale down. It does not,
however, seem as though this attitude toward the more distant
Treasury obligations is going to be altered very much until there
indications
are
moved
away
making
more
that the policy of the
monetary authorities has
from that of tight money and the cutting down, or
difficult, the obtaining of bank credit.
are
under the pressure of operations
by the powers that be, as they are now, it is not an easy task to
get buyers interested in government
securities, aside from the
shortest maturities, and by this is meant
mainly Treasury bills.
Periods of indecision such
results
in
as
v/e
in
are
now
in the money markets
stock
&
assets
acquiring
and
1
50,000
of
The
Engineering
The
the
business
com¬
operating
of
Reeves
Pulley Co. and a sales subsidiary
80,000 shares of its common
for
stock and
cash.
being
offered
stock
The
involved
are
50,000 shares
of
part
a
in
the
the, purchase
arrangement.
Reliance
the
Electric's
business
is
design, manufacture and sale
of
electric
motors,
related
and
equipment and electric
This is a logical sequence, because when
is being raised through action
by the monetary
rates also tend to move up.
the interest rate
authorities, short
Accordingly, the buyer of the most
likewise gains some minor
advantage in
liquid Treasury issues
income from the higher near-term rate.
The
cerned,
speed
reported
net
and
net
equal
big
question
now,
far
as
the
as
market
money
is
con¬
to be whether or not the money tightening and
limiting operations of Federal has run its course. To be
sure, there is no definite answer to such a
question, because the
monetary authorities themselves may not have the future policy
figured out well enough yet, since so much depends
upon what
will happen in the stock
market, the mortgage business and in
instalment buying.
So far, however, it seems as
though the measures taken by
Federal in an attempt to remove some of the
excesses
from the
seems
economic system without causing the whole
system tcrbe adversely
or no influence
upon the factors involved.
The stock market, the
mortgage business and trend of instalment
credit have not been very much
influenced by the action taken so
far by the powers that be. To be
sure, there is
before
these
measures
take
generally a time
it appears as
be supplemented in this in¬
hold.
However,
though the time factor will have to
stance by further moves
by the Federal Reserve Board
positive action is to be obtained.
if
more
of
what
appears
to
be
too
mild
the monetary
authorities, the feeling seems
Federal will resort to more restrictive
$1,799,333,
31, 1954. Reeves Pulley Com¬
subsidiary had net sales
of $7,554,161 and net income of
$647,450 for the year ended Dec.
31,
1954.
Reliance
and
owns
operates
plants at Cleveland, Euclid and
Ashtabula,
Ohio and
a
wholly
owned
subsidiary
ates
plant at Welland,
a
Canada.
Reeves
Columbus,
and oper¬
owns
has
Ontario,
plant
a
at
Indiana.
Rauscher, Pierce
To Be NYSE Members
E'ALLAS,
Texa s—Rauscher,
&
Co.,
Inc., Mercantile
Building, on March 10 will ac¬
quire membership in
the New
York
to
in
an
far
by
be growing that
in
the
not
too
effort
developed.
our
system, and tnis is not looked upon
monetary authorities will act rather
Stock
of the firm
Exchange.
Officers
John H.
Rauscher,
are
who will hold the firm's
exchange
membership,
President;
Charles
C.
Pierce,
Vice-President;
and
Thomas
E.
Malone.y,
Secretary-
Treasurer.
New York Stock
Exchange
Weekly Firm Changes
The New
York Stock
has
reported
changes:
Exchange
following firm
the
Transfer of the
bership of the
Exchange
late
Carl
mem¬
M.
Loeb
Henry A. Loeb will be consid¬
the Exchange, March 3.
Transfer of the Exchange mem¬
thus
to call a halt to some of
the excesses
It would not be surprising as far as
many
money market specialists are concerned to
have Federal again
raise margin requirements for
trading in stocks, and, when the
credit limiting policies are
getting more effective, to have the
discount rate increased.
It is believed by not a few in the
financial district that unless
there is a sudden curbing of the
excesses which have come about
from
$34,328,212
Oct.
ered by
action
measures
distant future
which have
them
of
of
income
pany and
to
More Credit Restrictions Due?
Because
the
sales
sells
Reliance
$3.82 per share on the
stock, for the year ended
common
effected have had lit«e
in
to
and
drives.
Pierce
Big Question
credit
lag
manufactures
shortening of maturities by those who have funds to
invest.
bership
Ely
of
Edward
Margolis
will
Viner
A.
be
March 3.
Gershon
partnership
Feigon retired from
in Long & Meaney
Feb. 28.
i
U. S. TREASURY
as
being too likely
promptly to prevent
STATE, MUNICIPAL
Ready-Made Buildings
Stock at $2
Aetna
ing
stock
a
Share
Securities Corp.
is offer¬
150,000
shares
of
common
of Ready-Made Buildings,
Inc. at $2 per share.
particularly
chases
of
materials
plywood
by
and
pur¬
other
where
savings
accomplished, for purchase
of additional equipment such as
saws
and
large trucks, for the
purchase of building sites, and for
additional working capital.
can
be
Upon completion of this financ¬
ing the outstanding capitalization
of the corporation will consist of
375,000 shares of 10c par value
common
three-bedroom
home
aggregate of 1,200 square feet
(including attached garage) sell¬
ing complete (exclusive of land)
approximately $8,950. The
PUBLIC REVENUE
cor¬
poration
also produces and dis¬
tributes garages, and is preparing
engage in the business of pro-
SECURITIES
to
during farm
and
small
commer¬
cial
structures, summer cottages,
cabins, and other similar
buildings. The buildings are pre¬
tourist
fabricated
in
the
corporation's
factory and delivered
by truck.
to
the
site
Newburger, Loeb Adds
Newburger, Loeb & Co.,
bers
of
the
New
York
mem¬
Stock
Ex¬
change and other Exchanges,
Aubrey G. Lanston
an¬
nounce
tered
that
the
& Co.
following Regis¬
Representatives
are
now
INCORPORATED
at
15 BROAD
the firm's main office at 15 Broad
stock.
Ready-Made
Street,
New
York
City:
Paul
poration's basic unit is
and Richard Wallach.
a
six-room,
ST., NEW YORK 5
WHitehall 3-1200
A.
sistant Treasurer.
L.. Simpson,
and
containing
an
for
to
considered
worsening.
Desnouee, Siegfried Guenzburger,
Josef Schenker, J. Harold Thomp¬
son
(Institutional Department),
H.
is
pany
variable
Vice-Presidents, and Jamie Dupree, Assistant Secretary and As¬
and
sale
Co. at $41.50 per share.
designs,
Buildings, Inc., is
engaged in the business of manu¬
facturing,
erecting
and
selling
pre-fabricated homes.
The cor¬
Richardson
March
on
common
Electric
auxiliary
I V
but
similar
York
.
steady decline in prices of government secu¬
rities continues, even though this erosion in
quotations has been
interspersed from time to time with mild rallies in prices of most
expansion,
Underwood Neuhaus
will become members of the New
Commission's
.
.
Inc.
public
drive and control systems. Reeves
shares will be used for inventory
HOUSTON, Texas —On March
Underwood, Neuhaus & Co.,
Inc., City National Bank Building,
Statements
The
<
Proceeds from the sale of these
Treasurer.
10
Categories of Misleading
has taken place in England.
of
Reliance
the
inflationary side.
So far the measures taken here by the
monetary authorities have not been too effective in curbing ex¬
cesses.
We may be in for some action not too dissimilar to what
Co.,
Exchange.
ley Hickman who will hold the
Exchange membership, President;
Jules
sharply raised the bank rate and put restrictions on
instalment buying. These measures were taken
mainly to protect
the pound sterling, but there was at least a weather eye toward
cases and
principle in¬
line of fair disclosure
benefit of the
10,
week -very
actual
hammered out admin¬
istratively in
the
are
materially dimin¬
Every * one that I have
ished.
assur¬
some
readily un¬
derstood,
therefore,
in
connec¬
tion with potentially libelous and
defamatory
material
that
the
action
important
trative delays and
of
violation of law, the
risks involved in publication of
such material have not been as¬
'
will recognize that if
but
Be Members of NYSE
the
court alone
sumed.
and
security
DALLAS
some
charging
to
without
our
that
not
the
relevant
the
The
I
as
you
and
However, it has
experience
in
these
cases
ance
is,
only
stated,
"prohibit."
can
use
of
material
few
these
staff
rules which I have mentioned
volved
have not been met.
tion that
Commission's
dissemination
There
on.
is, however, no shortage
of purchasers of the near-term
Treasury obligations and the up¬
trend in yield of these securities is not
entirely unwelcome. "
Although there is usually no\ connection between what takes
place in England and in this country, the British authorities last
The
of
some
contests is designed to help
eliminate
carries
financial
or
of
summary
notwithstanding
warn¬
ings at staff level, the Commis¬
sion has taken the position that
pressed
securities still
When the money markets
of libelous, defam¬
scurrilous or similiar ma¬
atory,
of
program
Long Treasuries Remain Under Pressure
expressions
which
identified
or
working its time out, in the credit
of the monetary authorities, which means that
the defensive attitude that has been prevalent
among buyers of
these
&
for
shares
The government market is
limiting
established;
that
Blyth
offered
.
by courts, Con¬
gressional committees and admin¬
istrative
agencies
and
similar
proxy
corroborating data. In most
in the past these data
instances
been
a
made
and
not
of
out
use
statements
an
cases
asserted
for the statements made;
experience
few
the
to,
the facts
or
to substantiate or establish
ability and willingness
of the proponent to supply com¬
plete a n d adequate supporting
have
contrary
or
known facts
Governments
on
By JOHN T. CHIPPENDALE, JR.
conclusions concerning the opera¬
tions
of the company not sup¬
ported
Reliance Eiee. & Eng.
Common Stock Offered
or
dividends, sales and increases in
not
absent
:
opinions
jections
terms
in order to make the whole
sary
*
Expressions of
Reporter
the
by
underlying facts;
(2)
Our
contestants
unwarranted
are
addition,
they
other
impres¬
or
41
or
purposes
in
raise
misleading
omit
or
business
the
creating inferences
to fair¬
as
In
couched
be
make
of
for
sions favorable to the
that
man¬
to
accuracy.
may
curate
time,
check
cursory
and
these
the
by
such
are
competence
nor
a
Usu¬
which
events
or
nature
very
have
individual.
an
attack mentions peo¬
places
their
ness
how¬
contest
proxy
character
ple,
earlier,
there
launch
we
facts
matters
business
to
of
all
times complete freedom *to>appear
in court in any case should that
Distortion
financial
the
of
prerogative
opposing sides
law
(1)
parties involved are the
1053
231 So. La Salle St.
45 Milk
St.
CHICAGO 4
^
BOSTON 9
ST 2-9490
HA 6-6463
\
Senator
Continued from first page
neglect
"
■
;
.
Such
all, let these gentlemen inquire
It is
of
its
fact of course,
a
trading
own.
that despite the enlarged volume
the New York Stock Exchange, only a small
the common stock .actually
j^xisting in this
on
fraction* of
country has ever at any time found its way to
Prices which
floor.
of line in
have by and large failed to bring
cases
some
these other shares into the market.
...
Some of these shares
held by the general public are doubtless in the hands of
individuals or enterprises which have particularistic rea¬
have been in need of
has
the whole been
on
Why have they not taken advantage of the prices that
a number of months? It can
hardly
be because they would not be able to buy other invest¬
ments to give them a better yield and better prospects of
ultimate appreciation. This stock market boom, if that is
have been available for
what it is, has been selective first and last.
Many stocks,
all of them well known to investment
specialists, some of
them quite favorably known, have taken little part in the
bull markets of the past year or two.
Some of them, in
point of fact, have taken no part at all. The trouble is, or
cne serious trouble is, that, thanks to the
capital gains tax,
is
it
inordinately expensive to shift from one stock to
profit has accrued. The result,
another when substantial
or
of
one
them, is that certain stocks have moved into
exceptionally high ground, and attracted the attention of
REDEMPTION
NOTICE
To the Holders and Registered Owners
First and
Company
Refunding Mortgage 33/4% Bonds, Series H,
Due
porations, but who
and
August 1, 1921,
of April 1, 1948.
supplemental Indenture, dated as
Indenture,
United
States
Trust Company of New York, as
1, 1955, at the redemption price,
Trustee, has drawn by lot for redemption on April
viz.: 1013/4 '/o of the principal amount thereof,
H;24WMMM> principal amount of said First and Refunding Mortgage
8%% Bonds, Series H, due April J, 2003,
est
The
BONDS
OF
$1,000. BEARING
THE DISTINGUISHING LETTER M
19
2235
4615
6999
11471
13611
15835
18611
20806
4771
7012
9348
11603
13828
15916
18810
20839
4805
7085
9370
11710
13910
16077
19001
20986
2462
5196
7312
9540
11965
14032
16102
19139
21034
626
2670
5378
7577
9569
12132
14168
17484
1932G
21113
23783
650
3179
5471
7744
9832
12220
14283
17530
19404
21394
Fulbright
major
3330
5630
7880
10167
12309
14497
17579
19483
21666
Committee
*
1189
3585
5868
7970
10225
12495
14591
17673
19631
21695
ask
must
»
themselves
5946
8001
10569
12523
14636
17891
19717
21868
Senate and in the House, to
of course, also the matter
alternative means^of
study the
6005
8097
10730
12722
14931
18006
19800
22040
1440
3818
6049
8222
10808
12737
15010
18068
19819
There
of
finding or developing
raising essential revenues. '
4219
6379
8491
10940
13031
15118
18286
20027
1540
4382
6514
8625
11060
13045
15332
18365
20176
an
4447
6766
8903
11119
13175
15489
18446
20194
4503
6787
9106
11239
13519
15610
18524
20339
IN
FULLY REGISTERED
FORM
WITHOUT
Numbers
!
R
R
6
R
Denomination
1
!
7
Called
Numbers
R
1,000
79
-
10,000
R109
10,000
R44
R50
1,000
Rill
1,000
$
10,000
500,000
1,000
412,000
Called
collected in the usual
The
principal
drawn
for
redemption of the Registered Bonds without
coupons bearing the serial numbers above specified will be redeemed and
paid on
and after April 1, 1955, at the redemption price of 101%% of the
principal amount
thereof, at the aforesaid office of Louisville and Nashville Railroad
Company, upon
presentation and surrender of such Bonds. The registered holder of a
Bond surrendered for redemption in part will in due
course
Bonds without coupons for the unredeemed
portion.
Registered Bonds must be accompanied by instruments of
duly executed in blank, with signatures
receive new
Registered
Registered
assignment and transfer
guaranteed.
From and
after such redemption date, no interest shall accrue
upon or in respect
of any such Bonds called for
redemption as aforesaid.
j
LOUISVILLE AND NASHVILLE RAILROAD
_
*
.
Dated:
-r,
.
-
-
COMPANY
February 10, 1955.
L;
By: W. J. McDONALD, Vice-President.
terms
'
who
the
use
building
a
argument
on
volume
homes
a
of
have
new
ultimate
an
demand
for
a
^
year..
formations- of
the
ef¬
homes.
an
entirely
use
premise to
the rate
family formations
the
as
only
the
couple
stocks
yield
home next year, five years from
ten
Stimulated
by
reflecting
to
a
This is
believe
is
popular belief that the Eisenhower
unfriendly to business, stock prices
basically inflationary situation going back
a fact for Senator
Fulbright and the others
a
ponder.'
now
I
have
the
answer.
the
new
mar¬
I
found
this
amiriation
of
in
answer
the
last
an
500
ex-
mort¬
gage
applications
bank.
These included homes sell¬
filed
at
my
ing from $10,000 to $42,000.
This
showed that 84.2% of those
• 500 families had one or more chil¬
dren. Of the 15.8% who have no
-
survey
children,
a
couples.
vast majority are older
Very
few were newlymarried, and these were in the
higher income brackets.
•
.
Another
very
revealing
by
made
large-scale home
a
building firm
v
Long Island last
on
following
year,
survey
completion
480-home operation.
of
a
This showed
the average age of the head of the
family buying these homes to be
32.3 years. I consider this particu¬
larly revealing because it should
refute
the
claim
made
by
alarmists that "mere kids
some
be¬
are
ing enticed to buy homes because
of easy credit terms."
The
Census
Bureau
estimates
that 600,000 new households
Continued
or
—
riages in themselves.
was
Administration is less
from,
years
market for homes—not
these bonds had got down to 2.80%.
on
I
this
family with children
which is the biggest factor in the
yielding 5.73%. By January, 1955, their yield
had
moved
down considerably, but these issues still
yielded nearly 4lA%.
by monetizing a national debt that grew
by leaps and bounds. By the time we got into the war, the
market,
married
when?
were
provide background for their deliberations, the
Fulbright Committee might turn to some earlier records.
In the year 1929, Moody's AAA bonds
averaged a 4.73%
yield. That figure moved up to a little over 5% in 1932.
Then the New Deal took over, and began to flood the mar-
gets
immediately go out and buy
home, or does that couple buy
now,
common
To
which
year
It
(2) In September, 1953, Moody's list of 200
home-buying
have raised the question: Does the
I
from first
formed
page .'
last
number
was
In
year.
800,000.
were
1953,
the
In 1952, the
estimate
A Defense of fhe
that
since
he
prefers I
is
it
discuss
was 1,000,000.
Nevertheless, in each
Housing
clearly
related
is
the
FHA
a
The
it,
to
so
There
three
ly applied
the basis of
on
a
bor¬
rower's
the
we
quarters—
particularly the opposition to
mortgage terms provided for
FHA-insured
mortgages in
the
Housing Act of 1954.
I
am
becoming quite concerned
with recent articles in
newspapers
and magazines to the effect that
present financing for homes is too
liberal, and that the nation's home
mortgage debt is too high.
Some
of
to
these
tion
on
conclusions
a
seem
superficial
be
examina¬
of insufficient statistics, and
have for
a
prosperous
national
economy.
It
is
lending
liberal
the
today
basis
past,
tising
is
on
than
but
The
sound.
that mortgage
true
very
at
far
a
any
these
more
time
loans
in
are
long-term self-amor¬
with low down
payment has proved the greatest
single
factor
in
putting
good
mortgage
homes
ilies
in
within
every
the
reach
income
of
fam¬
bracket.
Is this bad?
Less than
they ignore many basic economic
an
facts.
building too
a
economist
month ago,
say
many
that
I heard
we
more
than
h
accept the theory of those
of'family
Mortgage Credit
and
some
we
those
who assert that the declining rate
Liberal mortgage credit, sound¬
growing1 opposition
in
If
of
homebuilders of
1,000,000 homes.
Importance of Liberal
,
the
years,
America built and sold
ability to meet his obliga¬
tions, is one of the strongest props
based
'
a
'
have too liberal mortgage
fect
in
were yielding
slightly more than 314%. That rate
fairly steadily declined since that date, although some
rise in the past two or three months
finally brought it back
to 2.93%' in January of this year.
manner.
amount
is'
economy.
economists
the
do
has
to
Room 900, 71 Broadway, Borough of Manhattan,
City and State of New York, upon
presentation and surrender of such Coupon Bonds with October 1, 1955 and all sub¬
sequent coupons attached. Coupons due April 1, 1955, should be detached and
ownership
our
vNaturally,
AAA)
1,000
Coupon Bonds bearing the serial numbers above specified will be redeemed
April 1, 1955, at the redemption price of 101%% of the prin¬
cipal amount thereof, at the office of Louisville and Nashville Railroad Company,
of
families
a
mortgage finance.
All
home
yardstick.
(1) When the stock market boom got under way in
September, 1953, the best grade corporate bonds (Moody's
1,000
15,000
1,000.
and paid on and after
of
a
10,000
$
an
form
a
that the present- rate of family for¬
mations is not large
enough to
_>r
but
Denomination
59
R
with
facts:
Amount
8,000
$
$820,000
100,000
100,000
that
home
However, I think it is
/
Act of 1954 and the FHA
COUPONS
Amount
realize
to
a
a
why
In trying to learn at what
stage
family formation becomes a factor
22990
BONDS
fail
own
wonder
other vital points where
study of the stock
immediately or ultimately to Washington
itself. Let Senator Fulbright and his associates ask them¬
selves what they as managers of large pension and other
trust funds would do or would have done if faced
by these
22570
2138
I
own.
part of
erroneous
are
22474
2107
views,
family
to
saving.
I wonder
fail to recognize the
they
—
22359
;
desire
mortgage is
that
say we
.<•
leads
market
22157
1520
why
of
24336
r
people
similar
American
purchase of
support
question-^and, ;
same
Other Points
24209
3785
these
its
; million-plus
24180
3722
1357
of
lending
24080
1275
home
Some
of this state of affairs?
cause
type of tax on corporations is worth the price
thus exacted, and should ask their
colleagues, both in the
23923
1062
inherent
basic
23572
9121
has
fact
23537
522
,
.
23436
2430
the
economist, and
share
that
systematized
23203
2319
444
,
stock
to
up
fine thing for a fam¬
who
the
again I ask.
brought
was
its home.
amortized
whether this
to 1932.
221
1
a
I
a
own
an
forced.
may;
realize
can
obligations, is
on
are
.bearing the following distinctive numbers, to wit:
COUPON
,
There
new common
bad?
consider it
than
it
as
others
doubt that the corporate income
tax with its penalty on dividend
payments, and indeed
upon earnings on common stock, as compared with inter¬
NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the above-men¬
supplemental
dearth of such
better word
I wonder if t':at
more common
government
ing, families are being forced to
buy
homes.
Even
this
man's
phraseology seems to me to be
off-key. Induced might have been
ily to
By contrast, common stocks, which at the prices prevailing in 1929 were yielding only 3.47 %, were by the time
we entered World War II
yielding 8.13%.
April 1, 2003
Issued under First and Refunding Mortgage, dated
tioned
-
particular
no
from
elsewhere to build rental hous¬
or
Is that
ket with funds
of
Louisville and Nashville Railroad
a
Thursday, March 3, 1955
.
Be that
issues, all things considered.* There are doubtless several
reasons, which apply with varying force to different cor¬
.
Why?
funds) by the sale of
stock, and thus increase the supply to the market?
.
that because there is
a
.
i
sons for not disposing of them more or less regardless of
price—desire for control, for example. At the same time,
who can doubt that many other owners of such shares are
quite free of such restraints as these?
■ v
*
Again, why is it that the high prices that are being paid for some issues of common stocks have not persuaded ''
corporations to raise funds they need (and many of them
the trading
n)o£f authorities think definitely out
price of the capital
Senator Fulbright and his
derelict if they fail to take
question whether the tax is worth what it now costs in
this type of disruption of the normal working of our eco¬
nomic system.
dispassionately into the possible effect of our Federal sys¬
situation such as they are studying.
It has all along been evident, of course, that demand for
common shares has regularly exceeded supply since Sep¬
tember, 1953. There has been a great rise in- demand, but
on
-
this fact into careful consideration, and at least raise the
tem of taxes upon a
sidered
at most have risen
or
.
encouragement
-
to be the inevitable
as it now stands.
associates would be seriously
earnestly and
abnormally little increase in the supply. To the origin of
enlarged demand we shall turn in later paragraphs. But,
first, why has supply been inadequate to this increase in
demand? Why have not higher and rising prices brought
out greater supplies of common stocks?
There are two
aspects of this subject, each of which needs to be con¬
seems
gains tax
long while past.
t
moderately.
.very
opportunity for service the like of which has
enjoyed by any committee of Congress for a
First of
Fulbright, and others in Washington who may not
than vaguely aware of the very large number of
more
issues which have not risen at all
an
been
not
be
We See It
As
-
The Comm ircial and Financial Chronicle
1054
42
are
homes for sale;
formations
should
im¬
mediately lower the rate of dwell¬
ing unit production, and thereby
disregard all other demands for
homes,
the
nation
should
have
built only 600,000 homes last year.
Instead,
ing
a
units
most
total of 1,215,500 dwell¬
produced,' and, in
was
areas,
all
immediately
were
occupied.
No Over-Production of Housing
That
tant
brings
up
a
consideration
very
that
be overlooked by the
contend
with
an
that
we
are
impor¬
seems
to
people who
confronted
over-production of hous¬
ing.
In
the
area
in
which
of the Group Five
Association
members
Savings Banks
operate,
very,
very
Volume 181
few
Number 5408
homes
built
are
.
.
The Commercial and Financial Chronicle
.
tional
specula¬
on
tion.
the
No
•
builder wants to
bo5
or can
afford
to be, left with, an inven¬
tory of unsold homes. Therefore,
the general practice of develop¬
ment
builders
erect
one
in
this
two
or
and then sell 25
exhibit
or
is
area
to
builder
30
or
houses, does the
construction.
commence
been
a
practice in some parts of
the country, but it is very rarely
found on Long Island. The largescale operative builders have
largely
replaced
the
speculative
builders.
I
am
this
upon
whether or not we are likely
over-build, I would like to em¬
phasize my be'ief that the market
itself regulates the building vol¬
There is
ume.
cannot
or
certain
a
and
If people do not want
■not
afford
buy,
and
them,
sure
homes,
they will
builders
will
not
build.
can
production.
look
we
serve
on
key material
gets
have
which
under
where is the cement to
we
brake
a
construction
scheduled
Do
is
of
the
productive
enough
.
We
Have
The
•
No
doubled.
.
word
"boom"
has
Boom
tivity—activity which has been
moving at a rate of one million-
Instead, it is
of
of
living in their own homes, where¬
as
in 1940, the debt was 166%.
While
a
natural
I
with
modern
incomes
to
afford
homes.
Can you call it a boom when we
-examine these figures?
The 1955 total construction
-
.
•
penditure
.
billion.
,
lion.
is
At
estimated
at
$39.5
valuation of
today's
of construction
$24.2 bil-
was
Does the difference between
$39.5
and $24.2 billion, or $15.3
billion, constitute a boom? I think
not; particularly when
we
the 1920s from 118 million to 162
million.
,
as¬
real
proof—
assert,
some
ary,,'as
or
serious
a
ourjJ|onomy.
danger to
-
It is very trtpjsthat builders to¬
day have no difficulty in arrang¬
ing mortgage "t^rms that buyers
can afford,
and^hich makes sell¬
ing
Th^fe
easy.
due
to
a
con¬
extgjlpto the splendid
of;^pe Federal Hous¬
Administfip^n and the Vet¬
operations
ing
Administ^ftion
erans
home
loan
guaranty program.
A
Done by VA
The VA has done
job
in
helping
magnificent
a
veterans ac¬
quire good housing. The FHA has
done an equally fine job for the
war
But it has long been
was
the
chase of
a
non-veteran
when
man
^erms for the
home.
liberal
-more
the
that
forgotten
to liberal
came
disagree with the theory
ent home mortgage debt of about
$75 billion is too high.
This is 25.1% of estimated
it
pur¬
That is why the
were
written
terms
FHA
advanced
that today's low
ments
and
argu¬
down
pay¬
long mortgage terms
provide enough equity, and
do not
that
the
and
the
credit
terms
families to buy homes
encourage
they cannot
afford.
charges.
Approval of credit
suitability of home to buyer
and
is
fundamental
this
to
type
of
Any equity at all is better than
handful of rent receipts, and it
has
been
the
bank
own
experience
where
of
have
we
$91 million, or about
19%
my
some
of
our
total
home-buying families do
tablish
equities.
surprised
be
nate
But
effort to elimi¬
concerted
a
these
of
easier
es¬
would
number
be
and
these families want
opportunity
to
start
is
toward
their goal of home ownership. The
The
available
broader
market
create
for
much
a
the
builders'
product. Limiting mortgage lend¬
ing to conventional financing
would deliver
body blow to the
a
even-fhore seriousness—
and this is
verjrdefinitely a build¬
problem—1$ the well-defined
movement
in isome
quarters to
ers'
abolish the FHA entirely.
tions
to
curtail
of
with
taken
source
the
the
of these
and
should
of salt.
suggestions should
be examined very carefully. Could
some
of these
with
a
tion?
view
Have
of the FHA
to
suggestions be made
to
an
exclude
limiting competi¬
some
of the opponents
ax
to grind,
namely
making of
the
from
high ratio loans, all but the type
of institution
circumstances
erate
Most
of
they represent?
the
either
been
been
rental
the
can
afford.
housing
has
government-sub¬
sidized type for low income groups,
the
or
be
The
rental housing has
made available in the price range
that the average family in mod¬
come
grain
a
Sugges¬
activity
FHA
One must remember that practi¬
no
luxury
for high in¬
type
families.
sight of—the one-family home
builders,
assisted by liberal fi¬
nancing terms, have been able to
step into the breach and supply
homes
that
families
for
these families
are
under
is
the
backbone
said
puolicly
conceived
to
per
pany on
that
the
FHA
benefit
the
11,000 homes.
were
This
Company will redeem
Company, at $105.00
on
April 1, 1955,
per
share.
After April 1, 1955, dividends
on
on
the 5% preferred shares will cease to accrue.
Copies of the redemption notice
were
mailed March
1, 1955, to each holder of 5% Preferred Shares
that date.
The
redemption agents
National Bank, 11 Broad
priced
plus accrued interest.
The
14.%, and
of
poor
the
into
$65
share
Of
the
that
in
was
almost
were
the
near
the
development,
or
operation
start
to
was a
rise
to
the
point
afford
where
the homes
oil
for
But
of
and
properties
gas
to the
principal amount.
will
necessary.
pany
In
conclusion, I want to reiter¬
belief that the mortgage
lending industry, the building in¬
dustry, and the real estate indus¬
ate
try
are
and
my
all
through
tions
part
such
of
a
team.
builders'
It
is
currently
producing oil
located in California,
gas are
Louisiana, Texas, Montana, Wyo¬
ming,
New
Mexico,
Oklahoma
and
Canada.
and
is
organiza¬
operates six refineries and
seventh
is
The
company
expected
are:
on
be
Home
found
The
Builders
for
mutual
our ^
is
same
Association,
true
prob¬
of
for
export.
the
organized real estate industry
through the local and national real
With State Bond & Mtg.
(Special to The Financial Chronicle)
estate boards.
NEW
James
H.
O'Reilly Opens
O'Reilly is conducting
ties
a
ULM.
Minn.—Edward
Melvin F. Waterman
nected
with
The Chase
City National Bank & Trust Company of
Chicago, 208 South LaSalle Street, Chicago 90, 111.
Co.,
gage
North
28
Street.
NOTICE
Baking
Company
'
'
•
par
value
totaling 125,575 shares have been selected by lot by the Company's
at
the office of the Company's Transfer Agent, The
share plus accrued dividends
A list
to
of
Agent, The Corporation Trust Company, for redemption and will be
Corporation Trust Company, 120 Broadway, New York 5, New York,
per
out
outstanding shares of such stock. The certificates for the particular shares
April 1, 1955,
to
April 1, 1955, amounting
to
$1.371/i
at
$105.00
per
share.
showing the particular certificates selected for redemption has been mailed
each
owner
of record of such certificates
at
The shares of stock called for
the books of the
accrue on or
Company
after
to
the close of business March 1,1955;
redemption will continue
to
be transferable
upon
and including March 31, 1955. Dividends will not
April 1, 1955,
upon
the shares of stock called for redemption;
CONTINENTAL
35 EAST WACKER DRIVE
BAKING
COMPANY
i
By William Fisher, Secretary
CHICAGO 1, ILLINOIS
March 2, 1955
March 3, 1955
&
con¬
Mort¬
securi-'
business from offices in the
THE PURE OIL COMPANY
are now
State Bond
Baking Company has called for redemption 125,575 shares of the
on
Q.
Brengle, Jr., Lloyd E. Mertz and
Company's $5.50 Dividend Cumulative Preferred Stock without
redeemed
a
com¬
pleted this month. On the Pacific
Coast, its principal operating area,
the
company
markets
approxi¬
and the National Association of
mately 14% of petroleum and
Home Builders with which they
petroleum products sold in the
are
affiliated, that solutions can area for local consumption and
land
'
Transfer
be
Long Island Home
Builders Institute, the Staten Is¬
Street, New York 15, N. Y.;
and the
:
to
owns
the
as
$5.50 Dividend Cumulative Preferred Stock
253,575
for
and
if the
mortgage
Union Oil Co. of California is
permit that to hap--,(
engaged in substantially all
pen. We have the tools with which
branches
of
the
oil
industry.
to put on the brakes whenever
Holdings from which the com¬
lenders
REDEMPTION
r'
pur¬
property additions.
doubt
I
corporate
before maturity at par.
Optional
redemption prices scale from
are
JACKSONVILLE, Fla. —James
any
general
A sinking fund beginning 1966
provides for the retirement of
approximately 52% of the issue
It
buyers
that
promissory
including expenditures for
exploration, for development of
imperative that costs should not
cannot
of
poses,
builders'
problem-is the matter of costs.
is
prepayment
used
a
with.
important
sale,
will apply $23,831,redemption of all of
the
to
other
highly
proceeds from the
and $5,172,500 to the
pre¬
payment of purchase money obli¬
gations*. The remainder will be
small
very
the
the
case
of
1970 and $75 there¬
notes
poor,
conclusion
1,
outstanding $3.75 cumulative
preferred shares, $10,000,000 to
mer¬
as
at
1,
company
250
ap¬
every
regarded
March
the
chandising their product. I might
add
March
to
in only 4%..
really
are
con¬
after.
indicates, in itself, that de-<
parently builders
are
shares
common
to
100%
1958;
$67 to March 1,1961; $69 to March
1, 1964; $71 to March 1, 1967; $73
jobs,
mand
is
still
strong
from
home-buyin? nublic and.that
debentures
new
vertible
per
at
were
has
of such stock
amounting to
April 1, 1955, to shareholders of record
1955.
82%
of
(subordinate). The
debentures
We found that sales
in
good
Co.
tures due 1975
study of sales
a
Oil
home-
share, will be paid by The Pure Oil Com¬
March 10,
made
issue
convertible deben¬
brake
over-extending them¬
We
sale
new
a
an¬
Company is calling
Dividends accrued to April 1, 1955,
$1.25
economic
public
niversary of the FHA last June, I
outstanding 5% Cumulative Preferred
Shares of the
of
building Operations at the end
of January on builders' • jobs we
are financing.
This covered some
terms
community.
Continental
all of the
glimmer
a
for
California 3%
my
Barnett Bank Building.
its 5% Cumulative Preferred Shares
The Pure Oil
basic
a
Continental
The Pure Oil
in
and
been the greatest single boom ever
na¬
reports
builders
afford.
can
home-owning
Furthermore,
families
Aiready,
department
offered
yesterday (March 2)
of $60,000,000 Union
will
There,
again,
lems.
However—and this must not be
lost
addi¬
probably
103%
liberal mortgage terms
more
for
money
Dillon, Read & Co. Inc. headed
investment banking group
an
which
being built.
opportunity.
now
True,
A related subject in this discus¬
sion is the matter of sales.
A
FHA and the VA afford them that
cally
terms.
bank
own
prepayments.
that
All
the
of
You
the
at
sound.
light in this respect.
it
these
into the Housing Act of 1954. Now, local state and national economy
less than seven^months since that, by restricting the volume of home
law became effective there seems construction.
to
mortgage
mortgage portfolio, invested
.where sales
FHA-insured mortgages, that
in
•
of
personnel
fair in
lending.
a
the
Offer Union Oil Debs.
satisfactory
are
solve that problem.
soon
and
been delays in FHA..
But, the increased au¬
thorization
selves.
What kind of reasoning is that?
The buyer is not approved for the
loan if he cannot afford the carry¬
ing
have
processing.
on
amounts
Magnificeniytob
the
opposing
present FHA
economically
tional
have
VA
ment
.
On the occasion of the 20th
also
of alarmists that the nation's pres-
,
to
theory—thaj this is inflation¬
realize
1 that population has increased since
I
welcome
Those
the
regulations
there
connected with the real
reasons.
the
beyond
that this trend has continued.
functions
ex-
the dollar, the 1923-29 annual vol¬
ume
data
no
treasonable
seems
would
not
expansion
housing to meet the needs
fantastically-increasing popu¬
lation,
>
it
1950,
have
we
our
a
more
Furthermore, the
in 1950 was only
debt
recognized
recently
dwelling units for each of
•the past six years.
I do not think we have a boom,
in the popular idea of the term.
j
payment
had
.
-plus
;
for
debt
96% of the income of the families
non-veteran.
Housing
-been used very
carelessly in con¬
nection with present
housing ac<
responsible
mortgage
mortgage
way,
from?
come
capacity?
i.
In the period
believe
and
vigorously by
building industry.
I
think it necessary to list
hardly
the
greater
opposed
Dillon, Read Group
Satisfactory
and
estate
far
a
1940 to 1950, the number of
families
be
The debt is
If all the road building
other
now
as
For example, suppose
at just one
•—cement.
and
among
number of families.
from
'
materials
VA
everyone
15 years ago.
case
siderable
Also, the supply and demand for
Any effort to eliminate the FHA
should
to
<test.
I
perhaps greater
or
43
FHA and VA Regulations Are
I want to reiterate
that statement here today with all
the force at my command,
much broader base for carrying
the home mortgage debt than was
subject
of
buying public.
importance, is that today there is
sume
While
1940,
debt
income.
a
than
Perhaps speculative building has
•
equal,
In
1954.
mortgage
national,
of
distributed
30 homes from
these models and plot maps. Only
after purchase contracts are signed
for these 25
of
for
billion
22.7%
Eut
the
houses
income
$17.3
was
1055
Minnesota
The Commercial and Financial Chronicle
1056
44
Continued
from
York
20
page
Shipbuilding,
Every
A New Look at
submitted
granting
are
merits
the
asked
the
management
the
I
corporation.
depe'nd"^ shareholders5
(dependent
sharenolders
States
Unxted
failure of
as
of his
cash
own
valuable,
but
valuable
if
of
will
he
he
will
stock
indicate
to
rectors—one
com-
a
better perspective on
shareholder opinion, what finally
was
prodding
of
F.
resolution
dent
the
that
year
management,
pledged
that no stock so acquired would be sold for at least
three years after exercise. Similar
protective clauses were entered
into
whereby
a
definite dollar
the stock in
own
director did
every
definite
with
contract,
of contractual obligation
piace 0f the option which is
merely exercised if stock goes up
and
not
at all when shares go
down.
And
President
Perlman
place
question.
annual
that
what
report
were
improvements
gested
future
for
similar
and
questions
what
and
tion
The
done
the
the
am
shares
my
still
plan
the
be
entitled
a
that
I
on
have another example
we
would
resolution
have
told
them
those which have preceded them,
this
at least, since the principle
year
involved
had
been
the
Third Burlingto
aged
Louis E. Wolfcontender
for
Avery's crown met
young
Sewall
situation
the
and Scott
at
Merritt-Chapman
few years back when
a
one
of his directors
not
having
was
shown
stock in the
any
as
con-
struction company he has built
up
so
well in recent years.
He not
only met
floor objection
my
shareholder
needed
steps
rectors
of
has
all
been
di-
equal
idea
with
with
all he did
Merritt-
m;ust
own
as
as
The
company.
no way
asked him to do it
trump
was
better
there
firm
year's salary
holding as long
or
yet
my ace.
be
no
options,
°^lcer wiU get his stock
the current market price.
If
he gets eventual control of Mont-
plfdfed a
m? *ollowed
ke com~
anS
t.
mitnitv
i
e,
,
S2ES5.tInS^
bGtween man"
*
In fact it1!nnrra*
It
this policy Of manr
was
agement
which
stockholder
-
he
has
relations
also
opposition
to
this
to
proposal
is
as
glad
questions
stockholder
answer
to the results of such
meetings.
voted upon last week at BurlingWell first of all why should the
f°n Mills, which received the owner have to write to his em¬
ballot of many of those who think ployee for a report of what took
as I do in the field of stockholder
place—that is just what the man¬
relations, asked for the election
agement reply means?
The an¬
of the auditors each year. This swer to each owner may
wise policy is now followed by
over
400 listed corporations,
partly due to the state laws in
states with the best shareholder
legislation and partly due to the
pressure of
independent shareholder opinion in recent years,
again
Here
in the
third
defeated
proposals
to
time
present
—
which
expect our
we
—
be
of the
case
proposal
Burlington
while
defeated at the
they are intro-
duced for the purpose of record-
ing
vote
the
effective
an
the
to
SEC
less
first
proxy
brought
time
record
protect
permitted by
extent
management
he has insisted
shall
P
The third independent proposal
the
a
the
suggested it
And
is
wholly his, I, in
was
that
a
Scott
to
permanent
is
This
years
and
as
officer who has
every
two
Chapman
«tock
known
doctrine.
policy that
he
that
see
a
the
ihe
become
now
Wolfson
at
to
as
taken
corporation now
stock, but from it arose what
own
a
has
and
The last management statement
in
as
rules,
about
nevertheyet another
concession.
in
noted
For the
the
man-
rejoinder rebutting our
arguments in the proxy state-
agement
ment,
the
dressed
to
annual
both
report
the
is
ad-
shareholders
differ,
one
different
get
may
than
another—all
have
an
equal
answers
should
owners
plight to equal in¬
Investigation
shareholders
has
in
shown
many
attention
more
corporations,
in
of
man
the
"canned"
post-
to the
of
is
the
and
not
it
argumentative
even
the
in
annual
best
report.
i
what
is
man¬
paid for anyhow?
The
sending out of a post-meeting re¬
port
after
annual
and
special
agement
meetings is just
much
as
of the
part of the duties of the manage¬
constructive.
°ur final P™Posal is one of the
t f1]nf]arnpntal
in making fnr
i iunaamentai in making tor
Stockholders hardly think man¬
corporation citizenship and
pany
the operation of the com¬
business.
is
agement
determining
serves
in
whether
useful
a
position
the
of
not it
purpose—that is
individual
owner
determine for himself.
Professor Loss' text book. For
owners can have ful1 disclosure
as to what takes pIace at their
meetings only if the management Prepares an impartial fac-
Ward has for years failed to send
in
the
field
of
Public
Relations and other early mistakes
which had been well aired in the
tual account of what took place
at these sessions. . . .
agements won't even do.
press.
a
later
first
made
new
look
what
he
in
me
at
this
decide
Louis
offered
shareholders
talk
on
be
which
to'
take
Wolfson
the
a
and
American
the side
of
man-
agement. Prior to that I had only
known
of his blunders at
Capital
Transit
Mr.
Robert
Chairman
of
R.
the
Young, the
Board
York Central, is another
trending away from an
of
new
New
who
is
earlier
mistake of his at Chesapeake and
Ohio in the field of management-
stockholder relations. This
was
the
lnfor.m.ed voters- 11 was the focal
in
Here 1 will just signal to
few such
—and
for
study—A.
Atlas, Fairchild
G.
Sewall
Avery
Montgomery
at
out
a proper post-meeting report,
although to his credit he at least
minutes
the
sends
when
you
write for them, which some man¬
think
for
dividual
a
minute
stockholder
of
In-
Corporation, St. Joseph Lead,
Merritt-Chapman and Scott, New
of
stock,
half
of
which has been in our family since
1929,
are
going to vote for Avery
who makes it hard to know what
takes place at
or
Louis
where
the annual meeting
Wolfson
who
makes
it
I
realized
cumulative
Mills,
to
Mills
hope
those
how
im¬
is at
realize that the
now
voting
put in cumulative voting
when they have control of a
corporation, not after they have
lost control of the situation.
And
why the law should be mandatory
in
the
21
states
that
so
the
be
cannot
game
rules,
changed
mid-stream.
in
because
realize
we
the
importance of this basic fact that
we
have pushed everywhere for
maintenance
its
will
and
For
way
of
an¬
the
over
extension
to
do
in¬
so
ahead.
years
example Robert R. Young,
York
Central, took a
New
step
great
he
when
annual
Cloud
and
continue
creasingly
was
management-
good
is
It
he
McBee
relations,
forward
voted
meeting.
personally
it
for
the
last
now
the
at
But
Wampler.
time
True, the late Robert P. Van¬
derpoel, who was one of the most
columnists
campaign promise and put it into
operation.
In order to be sure
that not a single approach to the
took
subject
independent
in
the
with
financial
United
States,
issue
the
merger
and
Devoe
Raynolds,
which
I
the
blame
for
the
basis
cardinal
sin in
on
offer
on
a
This
sell
is
the
that
the
only
of
a
right
insiders
do
make mistakes when
Still
it is
same
their
not
and
not
often
they do.
duty
to
way
we
.
.
.
are
Vanderpoel raised the
think
Mr.
Wolfson,
when he buys other corporations,
should try to see that the seller
glad
point.
Mr.
We
this
we
if
the
a
condition
seller
feel that the
of
refuses,
onus
of
re¬
sponsibility is still with the seller
and
the buyer should not turn
down an offer to acquire a cor¬
poration
in
the
interests
of
his
other
public shareholders because
of the stubborn neglect of share¬
holder rights by he who sells.
a matter
of fact, the transfer
As
of
by moving to in¬
the
Interstate
Commission
in
the
proposed merger of
and
Jeffersonvilla
Bridge and Railroad
Company..
The principal purpose of the in¬
tervention
which
Finance Docket
is
described
in
18656 is to
ipsure
that cumulative voting shall pre¬
vail
future
at
elections
gheny and New York
the
that
company,
We
this
Louisville
the
rata basis.
pro
control
the
have
before
Commerce
- stockholder
rela¬
tions, by selling control at a
higher
price
than
the
public
shareholders were offered, with¬
out offering to see that the other
received
done
we
independently.
moved
matter of the
good
the
Young has any
in swinging some of his
tervene
management
shareholders
in
overlooked,
have
exchange was fixed
goes hasically to the former own¬
ers
of Devoe and Raynolds who
a
implement the
Mr.
also
the
committed
is
that
trouble
My only difference with
Vanderpoel on this score is
that
to
come
fellow directors into line
do
own.
Mr.
has
event
equity of
the
share
terms
in
the
case
of
then
60
shares
of
Pacific
a
is
who is alert to the im¬
Mont¬
own
time
the
against
proposal, which
inspired by me,
or
suddenly
of
shares
However,
Pacific
Mr.
Merritt-
being expanded by
man
young
voting
not
am
portant
have
Carrier is
But
bers
who
exchange
We
have
Royal
make
gomery
I
owner.
invest¬
merged this summer, or the
sale.
up
Camera and
when
does
you
this
Spalding,
strument, Beatrice Foods, BristolMyers,
Royal
McBee,
Lamson
Scott
possible.
in¬
Do
that
Ward and the other mem¬
of his family who together
I have brought them
your
you
post-meeting reports
can
every
and
liked the way Allan Ryan did the
same
maybe
—
whereby
share
the
used
whenever
the
the
mine
not
was
such
we
expanded
and
or
point in many,ways of the great
Transamerica decision mentioned
noted
will
has
why
methods
has
Chapman
which
Just
and the Board as it should be,
so even here the effect of the introduction of this proposal was
followed
as
the
burdensome.
only
elsewhere
on
liked
Wolfson
is
course
budding
Mills
defeated
of
that
of
legislation
mandatory
your
Naturally
it
who buy
permanent
it
Burlington
as
Again
not
as
us
al¬
not
lawyers will be among those to
push it through one day.
ments.
Continuing, the management
states that sending out a
postmeeting report is unnecessarily
ment
term
shareholder
something
through
long
as
portance
is
language
but
to
the
even
street
the
contrast
involve
not
stockholder
of
law
does
law
the time has
for
some
the
the
in the State of Mas¬
as
make
to
where
Where
sachusetts
shares not for speculation but
our
now
because
report,
couched
does
that
cases
to
meeting report than
annual
stock
penalty to those of
of
was
put cumulative voting into ef¬
there, as it should be in all
allow it,
use
other
formation.
pay
of
issue
This
by
lows it.
cash, but where stock is equally
welcome, this method which saves
shareholder
money
should
be
used.
We object to paying need¬
a
the
fect
less
that the management will be
i
™
recognized.
This is the way
son,
than
relations
ment-shareholder
the
superfluous
was
discus¬
Burling¬
the
to
brokerage which would be
just mentioned
ceiling is agreed to as well as a
the case if we had accepted the
of inept management-stockholder dividend clause before any bonus use this procedure — but a brief
Burlington cash offer — and in
relations.
Since they were recti- payments are made under the new statement that the directors were
cases
where
a
cash
elected and the proposals
purchase
men¬
fying what I had criticized a sim- incentive compensation plan,
tioned were defeated is hardly a means a big capital gains tax we
pie letter informing me they were
Thus we can see that the new
see
no
reason
why we should
seeing to it that every director revolutionary managements have post-meeting report, as some
have to pay it when an exchange
xlid own stock, would have meant a firmer grip on good manage- managements still like to think.
Here
the
our
strong
protest
voting of the shares
Burlington
in
Pacific
Mills
against an independent proposal
fair
to
we see
under
of
voting.
against
demanded cash—to the extent the
is
as
me
of
of the large
may
have
some
Goodall
mine,
Cumulative
was
cumulative
am—for Burling¬
sure,
of
holders
meeting
the floor
caused
same
any
of
subject
on
come
management
im¬
to
though
even
Question
ton
of
the management makes
be
To
him,
Another
stock offer.
a
that ubiq-
meetings agreed with
point when we dis¬
sion
think
company
on
Fuller,
Voting
Burlington owner.
been glad to ex¬
a
after
it and there
are
just
times he disagrees with
The
last
d
the
to
lost
ships.
acquisi¬
o r
I happen
have
ton when
list
honor
I
change
Several of those
quarterly report.
job.
stockholder
would
I
the
with
f
has
eye
to eye on many aspects of
management-shareholder relation¬
the
to
that
relations
the
a n
record high
a
one
as
many
I with
as
an exchange of stock
large extent have done
a
basis—and
combined
strenuously
and
And finally the
price of Devoe and
James
on
many
to know
Stockholders who
same
extent
is
being
so
cussed
the
manage¬
stockholder
characterized
Goodall
sug¬
factually, fully, and
in
an¬
Devoe
up.
no
far
as
Even
the floor of
on
of ' Goodall-S
could to
partially there is not the slightest
objective to the post-meeting re¬
port
raised
old
uitou's fellow shareholder of
cash, when
in regard to the
quarterly letter which the man¬
agement says
gives data about
the annual meeting.
When this
is
the
want you
I do, do not like
a
purchase of shares with
about
raised,
of
and
what of
now
the
out* the
were
I can see, with all
due respect to Mr. Vanderpoel.
Burlington
as
annual reports
observation
next
—
issues
not
of
summer.
con¬
were
the
were
kind
comment.
management
of
does
meeting.
objected
I
out
the
all,
Issues
the
that
shows
rela¬
recorded
statement
which
sent
on
as
which
the
trary describes to all the owners
who could not attend what took
pledges
while still opposing our proposal,
moved quite obviously to insure
this
Presidential stock
a
jn
indepen-
the
was
purchase
the
Bernard
prince
resulted
Gimbel as not owning a share of
Burlington Mills. Under the ob-
vious
.
have
whom
of
nAnforenp(,g
.
report
post-meeting
for
ment
So what
get annual reports.
annual report is
much
some
objection.
first managerial
Other
wipe
which
Raynolds shares to
they
modern
at
history
proxy
its proxy
—the
As a resu t ?f..lhese
which enabled the management to
The
last
proxy
statement of
Burlington Mills showed two di-
merchant
u'
«
look at
a
ahead of the annual meeting. The
York Central
be just as
buy a few
intorpct
interest.
nf
of
We
history was asked her
Viewpoint and we were asked
't
as small owners of New
m a
in
uses
The
p0ratJon
willing
take
us
ment stockholder relations.
Shareholders, the most powerful
woman shareholder group in cor-
tte
the
this
A director may be quite
company.
shares
much
as
director to be
a
to put some
m.mitv
ot
or
let
of argument
kind
Mills
^ho"Sfon^f^omen
know.oi
So
case
body.
in
evil
rise in market
me
component parts of the
now
of
stockholder
-
Seme
be¬
Burlington
statement
as
to
why it cannot send out
post-meeting reports.
I will let
,you
judge for yourself if this
constitutes good or bad manage¬
the
are
to vote proxies independently. But, very wisely, he
consulted small share
er opin1?n as .w.e wflrrin §
President
owned at least 100 shares of stock
in
But
upheavals
owners
where
field
not
on
past
errors
blunders of a bygone day.
or
friendships ripen
and
the
management
irate
shareholder alike, confidence
friendly
from
tions
tween two
learning
to
needed steps
to see that
director of the corporation
every
that
show
of
tions,
American corporate
in another of the great
We
criticism, accepts sugges¬
answers
grows
which
Directors Should Be Stockholders
take
management has nothing to hide
from
the
owners
and
frankly
least
at
Raynolds set
basis
in
stand
mand of the New York Central to
the benefit of shareholders and
employee morale alike last yeai
do.
we
as
the
on
owners
stock options when he took corn-
ballots which always vote
blind ly with management instead
of weighing each proposal on its
proxy
own
the
When
will
class distinctions
Gilbert
campaign
inevitable
will not change our
judge our candidates
the
minds—we
increasing skill.
find out that
with
relations
are
All
Scott
the
way
-
shares into Merritt-Chapman and
other
management-stockholder, mudslinging
the
that
a
going.
good
those
of
proxies
ballots
volved
Managemest-
of options which are
definitely in my opinion the poortVxio have failed to read the proxy est kind of stockholder relations,
statement, as well as institutional At first he toyed with the idea of
u_«-*Sfked
which
managements in¬
understand and practice
show
Sharehuider Relations
pendent propo^j
predict
reports
these
of
yourself—
prophet to
guess for
don't have to be
you
one
Just
easy?
Conti¬
and
nental Can.
Thursday, March 3, 1955
.
so
shareholder in¬
served.
We happen to
like
and
support
Alle¬
public
is
terest
of
Central
of
most
the
policies of Robert Young, who is
bringing
many
into
but
there
both
a
Central
life
are
fresh
and
of
owners
many
corporations
breath of
Allegheny,
still
who
feel
differently about him.
wrongly they
of
right
are
Rightly or
entitled to the
cumulative voting—and
that if the former man¬
I may say
had
agement
listened
to
us
and
put cumulative voting into effect
as
Soss
Mrs.
the
annual
still be
tral to
they
meeting,
owners
a
last
asked
year
they
at
would
of New York Cen¬
much larger extent than
now
are.
Because they fol¬
lowed
the
absured
axiom
that
if
you
Wall
Street
do not like
a
Volume 181
Number 5408
\
■
.
.
.
The Commercial and Financial Chronicle
.
management
sell
or
policy
any
you
Continued
from
stock, many of these
sold their
stock
at
the
your
people
ideal
of
The Stale of Trade and
public
shareholders, but has dollars and
value
cents
of
all
steel, but 80% of the country's steel goes to industries other
automotive.
Many of them are experiencing a pickup in
business or have good reason to believe things will be better
of
than
owners.
applaud the initi¬
we
Mr.
Wolfson
Ward
gomery
Industry
independent
to
Similarly
ative
Wholesale Commodity Price
4
page
in
taking
for them, states
Mont¬
at
this trade journal.
demand
The
steps to
for
the
of
forms
used
steel
the
outside
auto¬
right of proportionate representa¬
tion
continues.
itself
worst kind
of management-stock¬
holder relations.
for
all
exactly
taken
at
demands the
This
owners.
position
does not
Mr.
voting.
Wolfson
voted
and
his
asso¬
granting
us
cumulative
voting
rights.
Last
for the first time, the ma¬
turing
Wolfson
moved
in
the
right direction once again and re¬
year,
frained
from
though
hind
his
and
the
statement
tive
opposing
it,
be¬
company
still
This
capacity for the week beginning Feb. 28, 1955, equivalent to 2,172-
hope that as
proof that
a
further
like
a
owners
Ward,
will
we
him
see
rise from the floor of the
meeting
and say that he is
recommending
its
enactment
tions
of
at
all
of
owners
future
the
ingots and steel for castings
tons of
based
annual
on
capacity
For. the like week
duction
2,070,000 tons.
of
125,828,310 tons
month
a
the rate
as
of Jan.
1, 1955.
85.8% and pro¬
the actual weekly production
ago
A year ago
was
tons or 70.7%.
placed at 1,686,000
The operating rate is not
lower than capacity in 1955.
percentage figures for 1954 are based on annual capacity of
was
The
capacity
because
comparable
124,330,110 tons
was
of Jan. 1, 1954.
as
elec¬
growing
Merritt-Chapman and Scott Com¬
Electric
Output Shows Further Drop the Past Week
electric
of
amount
The
energy
distributed
electric
the
by
If he does this, then once
again he moves to the leadership
light and
power
in the team of management when
it comes to progressive and con¬
1955,
estimated at 9,725,000,000 kwh., according to the Edisori
Electric
pany.
sistent
good
management-stockrelations.
holder
And
paradoxically
have
owners
this
often
Two
these
is
just
examples
actment
stand
of
out.
Encaustic
Electric
have
when
rights,
Institute.
vious
but
is
Tiling
of
increase
1,329,000,000 kwh.,
Share.
and
Never
increased
11,176
cars, or
1.7% above the preceding week, accord¬
cars,
an
Walker
1954
week, but
President
and
George
lead their respective corporations
with
to
times
not
with
relationship
thinking
at
all
only
which
for
that
the owners—again
corporation demo¬
in no way impedes the im¬
portant yardstick of financial re¬
sults for all shareholders.
have
covered
of
causes
shareholder
the
managementfriction.
There
are
as
executive
compen¬
sation,
previous
week's
topics.
trucks
LOUISVILLE,
Reid
has
Merrill
Ky.
become
trucks.
L.
Lynch,
Pierce, Fenner &
Beane, 231 South Fifth Street. Mr.
Reid
was
formerly with
the
mu¬
nicipal bond department.
Courts & Co. Handles
Private Placement
stitutional
investors
of
bonds, series E, due Feb. 1, 1980,
Inter-Mountain Telephone Co.,
Bristol, Tenn., has been negotiated
by Courts & Co., Atlanta, Ga., it
announced
on
March
1954
added to the staff
Park Bldg.
reported there
were
with
14,928 trucks made
in the previous
14,953
was
placed at 7,930
cars
and 885
mild reduction in prices
a
dropping to
a
low for almost five
new
.'
.
Spot cotton prices were irregular and closed unchanged
from
tone most of the
week, reflecting lagging mill price-fixing, selling by foreign in¬
terests and Secretary Benson's reiterated opposition to any change
in the present flexible price support program. Reported sales of
the
staple in the fourteen markets were smaller and totaled
167,400 bales for the week, against 176,500 the previous week
and
194,300 two weeks earlier.
Consumption of cotton in the
four-week January period, according to the Bureau of the Census,
totaled 711,286 bales, or somewhat more than the trade had ex¬
week
a
The
ago.
displayed
market
an
easy
Many
Dips Moderately in Holiday Week
Volume
Trade
retail
throughout the
stores
country
were
closed
on
of
week
declined
failures
to
the
in
holiday-shortened
so far this
178, the lowest level
down one-third from the 267 recorded in the
of
liabilities
of $5,000 or more accounted
for the
A
slight
increase,
above
to
failing with liabilities in
concerns
mained at
15, the
same as
excess
of $100,000
last week.
Bradstreet
&
a
new
wholesale
low
four-month
and
the
fourth
successive
below the com¬
parable 1954 figure of $7.20.
Commodities quoted higher
hams, lard, coffee and lambs.
the past week
Lower
were
were
flour, barley,
wheat, corn, rye, oats,
currants, steers and hogs.
The index represents the sum total of the price per pound of
raw foodstuffs and meats in general use and
its chief function
is to show the
cocoa, eggs,
general trend of food prices at the wholesale level.
i
J
/
volume
retail
of
in
trade
the
week
was
year ago.
Inc.,
Bradstreet,
&
the following percentages: New England —1
,
Dealers had
more
to sell well.
than 500,000 new models on
hand—a much
larger number than usual at this time of year.
This
in the
in
was
preparation for continued heavy sales expected
Spring.
Housewives increased their purchases
Lenten
the
items
week,
past
and
many
of fish, eggs and other
were
attracted by low
prices.
meat
Fourteen of the most popular cuts of meat were
at any
cheaper than
time In the last year.
furnishings
furniture and
promotions
brought
sales
of upholstered
case
wholesale buying in
and
prospects
slightly below
in
coming weeks.
considerably higher than last
at this time.
year
Department store sales
Federal
1955, showd
an
country-wide basis as taken from
on a
ended Feb.
19,
increase of 5% from the like period last year.
In
Reserve
Board's
index
preceding week, Feb. 12, 1955,
istered from that of the similar
a
for the
week
rise of 1% (revised) was reg¬
period of 1954, while for the four
19, 1955, an increase of 2% was recorded.
Feb.
ended
weeks
the
was
for increased trade
good
were
The volume of wholesale orders was
the
the week
preceding week, interest in many items improved
For
period Jan. 1, 1955 to *Feb. 19, 1955, a gain of 6% was regis¬
tered above that of
1954.
Retail trade volume
by
about
1%
in New York City
over
that
of
the
the past week moved
corresponding
period
a
ago.
year
According to the Federal Reserve Board's index department
food
weekly decline, bringing the current level 7.6%
bellies, butter, sugar,
did
Tuesday
on
The volume of sales
to be unchanged to 4%
Regional estimates varied frc-m the correspond¬
Dun
automobiles continued
ahead
price index dropped
another four cents last week to stand at $6.65 on Feb. 22.
This
represented
cities
Eastern
some
—5; Midwest —2 to +2; East and Northwest +2 to -f 6; Pacific
Coast -f 1 to +5; South and Southwest -f-2 to +6.
\ Sales of used cars increased noticeably last week and new
Four-Month Low
Dun
a
by
ing .1954 levels by
re¬
Wholesale Food Price Index Registers New
The
dollar
total
estimated
other hand, occurred
the
those involving liabilities under $5,000,
22 from 18 and equalled their 1954 level.
The num¬
small casualties,
rose
promotions in
week's total trade significantly.
slightly higher than in the same period of 1954.
was
the
on
which
lift the
not
the level of the
1939.
year.
the level of the
moderately below
ding and television sets lagged.
187 in the previous week and
last
week
cars
They compared with 204 a year ago, but were
toll of 178.
Continuing below the pre-war
was
of last
Wednesday
cars
1953
the
Failures with
31
quiet with refiners showing
was
goods moderately higher than during the same
week of 1954 but not above last week's toial. Purchases of bed¬
week's decline, falling to 156 from
ber
despite
raws
barrows and gilts
Home
industrial
and
level.
with
similar
CLEVELAND, Ohio—Ann Alex¬
of L. A. Caunter & Co.,
cost of
years.
Although
Feb. 24
level, mortality
1.
Joins L. A. Caunter Staff
ander has been
and 21,-
previous week Dominion plants built 7,432
and for the comparable 1954 week 9,181
$4,700,000
sinking fund
of
was
cars
from 205 in the preceding week, Dun & Bradstreet, Inc., re¬
For the third consecutive week, casualties dipped below
even
private placement with in¬
3.25% first mortgage
the
trucks,
ended
among
The
113,041
182
the
in
market
sugar
Hog values, however, continued to weaken with the average
a year ago.
Commercial
Wagner,
Reid & Ebinger, Inc., in
year
Business Failures Ease in Holiday Week
ports.
with
domestic
interest
little
2,184 trucks.
year,
John
—
21,574
In
777
last
This compared
Canadian output last week
week
associated
lagging
by
,
assembled.
were
Last week, the agency
John L Raid Now With
(Special to The Financial Chronicle)
of 5,427 units, states "Ward's." Last week's car
slightly under that of the previous week, "Ward's"
in the United States.
and
Merrill Lynch Firm
The past week's production total of cars and
183,008 units, a decrease below the preceding
the corresponding week
In
and
policies
week last year.
same
The
output
was
notes.
proxies,
dividend
last
corn
continued to trend downward under liquidation
manufacturer demand, pressure of heavy
arrivals during the week and substantial amounts of cocoa re¬
ported afloat to the United States. Warehouse stocks of cocoa
increased to 121,375 bags, from 94,148 a week ago, compare with
83,352 bags a year ago.
to
week.
week and
unfair
industry for the latest week, ended Feb. 25,
trucks amounted to
574
of
were
to
"Ward's Automotive Reports" assembled an
168,080 cars, compared with 173,482 (revised) in the
estimated
abuse, excessive pensions
officers, failure to grant pre¬
emptive rights, failure to solicit
similar
below the cor¬
Capacity Slightly Under Output of Prior Week
according
1955,
for
and
655,035
1953.
automobile
The
output
of
some
much
others, such
decrease of 34,395 cars or 5%
a
week in
U. S. Car
•
cracy
I
totaled
increase of 36,412 cars or 5.9% above the corresponding
responding
mean
harmony -but increased
dividends
showing
results
during the early part of the
fairly small but turned
as receipts picked up.
Primary
week were reported at 4,200,000
strength
some
market
receipts
The
of close
sense
a
shareholder
cash
Special
Malcolm
where
displayed
Cocoa prices
Previous Week
tions,
Schweiker
rela¬
fears brought
previous week.
Loadings of revenue freight for the week ended Feb. 19, 1955,
tions better than at both corpora¬
shareholder
seen
in the
on
Loadings Advance 1.7% Above Level of
ing to the Association of American Railroads.
Loadings for the week ended Feb. 19, 1955
we
war
Washington's Birthday, bringing retail sales in the period ended
Car
other
of
the result of the crisis
as
bushels, against 5,300,000 the previous week and 7,000,000 a year
ago.
Trading in grain futures on the Chicago Board of Trade in¬
creased moderately last week.
Daily average sales totalled 42,400,000 bushels, against 36,600,000 the week before, and 50,500,000
at 9,912,000,000 kwh.,
15.8% above the com¬
or
1953.
voting
the
dumping of stocks bought
receipts
weak toward the end of the period
1954 week and 1,655,000,000 kwh. over the like week in
parable
lessening
East
when
market
active.
less
was
the
as
187,000,000 kwh. less than that of the pre¬
American
and
Far
lacking
was
considerable
in the
for wheat
Demand
Support
week, when the actual output stood
an
grains markets.
the leading
in
at times and was subjected to extensive
pected.
This week's ouput
happens.
voluntary en¬
of
Bond
very
was
industry for the week ended Saturday, Feb. 26,
what
cumulative
One
the
lows.
sonal
compared with 90.8%
as
(revised) and 2,191,000 tons a week ago.
The industry's ingot production rate for the weeks in 1955 is
his
policies but still
want cumulative voting at Merritt—just as much as at Mont¬
gomery
96.1% of the steelmaking
capacity of the entire industry will be at an average of 90.0% of
large body of his fellow
who
The American Iron and Steel Institute announced that the op¬
erating rate of steel companies having
erratically
pressure
liquidation which carried all deliveries except March to new sea¬
induced
of sales, Bethlehem Steel Co.
manager
cumula¬
opposed
we
$2,000,000,000 worth of reinforcing steel and $1,000,pipe, says David C. Roscoe, assistant general
000 worth of culvert
000
year
of
than
more
proxy
voting.
result
>
and structurals
The daily
turned downward at the close.
and
fluctuated
under
was
Corn
is impor¬
tant.
It means a busy construction and maintenance industry—
second largest user of steel.
That industry has hopes of keeping
busy for a long time. Needs are a long way from being satisfied.
Road building continues to be a "must."
If the Federal Govern¬
ment's $100,000,000,000 highway program becomes a reality, it
will take
more
than
$4,000,000,000 worth of structural steel,
al¬
lagged
associates
Prices
,
upturn in demand for plates
commodity price level held in a narrow range
week
commodity price index, compiled by Dun & Bradstreet,
Inc., finished at 277.05 on Feb. 21, comparing with 277.4-3 a week
earlier, and with 275.76 on the corresponding date a year ago.
line
as
general
of the
Index Continues
wholesale
week
former
and
against
industry is already rising.
up
The
yet have
as
In
is
have
we
Merritt-Chapman
cumulative
ciates
He
the
the
Scott which
years
ing
The
most
Rye
Plates, for instance, are pick¬
pipe fabrication accelerates. Another company
responding to the upturn in line pipe demand is Republic Steel
Corp. It reopened its Gadsden, Ala., mill that makes large di¬
ameter
pipe. Structural steel is feeling a pickup, too, "Steel"
motive
the stagger system, which in
is another example of the
end
45
Trend
Lower
bottom—proving I hope that cor¬
poration democracy is not merely
an
1057
'
sales in
store
19,
York
New
City for the weekly period ended
In the preceding week, Feb. 12, 1955, a
year.
reported from that of the similar week in 1954,
weeks
the
ended
Feb.
19, 1955,
period Jan. 1, 1955 to
from
that of
a
4-9
week
while for the four
For
decrease of 3% was reported.
:Feb. 19, 1955 the index advanced 1%
1954.
•Comparison period begins with the Jan. 3-8
Jan.
Feb.
period of last
decline of 3% was
1955, showed no change from that of the like
in
1954.
week in 1955 and with the
The Commercial and Financial Chronicle
1058
46
A MUTUAL INVESTMENT FUND
k'
Heavy Industries in 1955
SPECULATIVE
By ROBERT R. RICH
SERIES
•
Invested in
sified
list
of
IIOW
diver¬
a
and
bonds,
preferred and common
stocks, selected for the
product
petroleum
stocks
of
company
are
to the
re¬
prospectus, clip this ad
and mail with your name
and address.
NATIONAL SECURITIES &
CORPORATION
one
in
ceeded
of
an
by
$17,078,750
were
as,"
paper
stocks held
common
Fund
for
value
market
company
or
Of this-
net assets.
"is
OF
with
Group Securities, inc.
Petroleum
Incorporated 1933
A mutual fund
investing
bonds, preferred and
stocks, with the
"balanced"
in accordance with
prospectus
on
request
from your investment dealer
Distributors
of total assets, or $51
ice
9,000
Vacuum
shares
Cities
Texas
shares
Oil
of
fornia
Group, Incorporated
It
of
4,000
Socony-
Inc.;
Oil
Standard
and
of
Co.,
10,000
Cali¬
of
shares
of
The
Company.
held,
of
as
of
Dec.
31,
Amerada
15,000
Petroleum
Corp.; 19,000 of Cities Service;
44,000 Continental Oil (Del.); 32,-
lHWSl
III
ATOMIC SCIENCE
through
a
MUTUAL FUND.
Gulf
Oil; 50,000 of Louisiana
Land & Expl. Co.; 52,000 of Mis¬
sion Corp.; 40,000 in Ohio Oil
Co.;
39,000 in Phillips Petroleum Co.;
29,000 of Pure Oil Co.; 40,000 of
Shell;
23,000
Skelly;
90,000
Socony-Vacuum; 50,000 Standard
of California; 62,000 of Standard
of New Jersey; 3,000 in Superior
of
California;
46,000 of Texas
Company and 16,000 of TXL. '
TELE VISION-ELECTRONICS
Fund recorded
in
crease
$23.3 million in¬
a
in
assets
its first
fiscal
quarter
ATOMIC DEVELOPMENT
ended Jan. 31, last, ac¬
cording to its report transmitted
to
MUTUAL
is
FUND,
Inc.
designed to provide
managed investment
a
in
a
variety of
companies participating
in activities
resulting
from Atomic Science.
types of improvements,"
Tripp said,
of
color
New
"will
sets
during
the
the
the
point
buy them."
by
the
Fund
quarter, according to
were in the common
report,
stocks
the
reduce
to
investments
of
ACF
Consolidated
Industries,
Electronics
Inc.;
Indus¬
tries; Consolidated TV & Radio
Broadcasters; The Electric Con¬
& Mfg.; Elox Corporation
of Michigan "A" and "B"; Food
Machinery & Chemical Corp.; Lit¬
ton
Industries, Inc.; The Ryan
Aeronautical Co.; and Tel Auto¬
graph Corporation.
shareholders
by
Chester
The
$79,231,366,
the close
an
or
the
Fund's
share, at
a
quarter,
pared with $55,868,018,
as
or
com¬
$9.47
a
share, three months previously.
Mr.
Tripp
asset
tained
value
new
per
highs during the six
months ended Jan. 31.
As of Jan.
31,
1955, net assets of the Fund
$5,825,642 compared with
$1,887,069 at the July 31, 1954,
fiscal
year
end, an increase of
totaled
209%.
The number of shares out¬
standing amounted to 916,616,
increase
of
outstanding
value
asset
of
all-time high of
$10.89
of the
assets,
outstanding and
share all at¬
number of shares
net
net
169%
on
the
over
total
July 31, 1954.
per
share
was
an
Net
$6.36
compared with $5.53 per share as
listed
report
FUND'S
D.
Tripp, President.
total assets at
PURITAN
attributed
the
asset
July
1955,
share
31,
On
Jan.
25,
per
was
pared
1954.
dividend of nine cents
a
paid by the Fund
with
six
cents
in the
com¬
pre¬
vious quarter on Oct. 25, 1954.
In
the latest 12 months' period ended
Jan.
31,
increase to appreciation of invest¬
ttT THE FACTS AND FREE PROSPECTUS
its
of
troller
shares
000
half
where the public will
Serv¬
Oil
about
mechanically and another
"Such
Mr.
Co.; 2,000 shares of Gulf
Corp.;
63 Wall Street, New York 5, N. Y.
shares
solu¬
sets'
developed
an
"automated"
production machine using tapes
instead of dies or templates.
During the last three months of
1954, the Fund purchased 1,000
additional
eventual
has
of
million.
sees
the
as
assembles
chassis
20%
were
income
ments
1955,
distributions
from
share.
in
the
dicted
portfolio plus sales
and
railroads
here
fund
today
was
by
pre¬
mutual
a
totaled
33.3
cents
per
carriers
said, adding that
will show much
their
in
gains
greater
common
share earnings.
Railroad
"Erie
Baltimore
and
Addressing
&
explained, "may increase common
of
business
execut i
v e
bankers
200%;
show
about a 25% gain; Pennsylvania
may report nearly twice what it
earned on its stock in 1954; Rock
Island could gain almost 30% over
and
the
at
LaSalle
Hotel
the
on
invest
its
t
m e n
outlook
D
a
for
e
c
policy
William
j.
given to 1955 profits through the,
resulting tax savings."
Securi¬
Corporation, New
the recovery in steel,
non-ferrous metals, machinery
York, said
earnings which began
quarter of 1954 will
final
the
continue in the months ahead. The
crease
in¬
will
"Residential
struction
headed
and manages
curities
which
company,
than
time
Mutual
total
combined
more
spon¬
the National Se¬
of
Series
with
in
building
general
toward
Funds
of
assets
$200,000,000, plans at
to
retain
"substantial
and
excellent
with the combined total for
public and private outlays at a
year,
all-time high."
new
non-ferrous
The
metal
hit
a
a
of the copper companies
some
fairly
hard blow in the third
quarter. The aircraft prospects are
bright for some time to come."
Mr. Dacey told the meeting he
looked
another
lor
good
for
year
holdings" in securities of these in¬
the national economy in 1955. Per¬
dustries.
sonal
consumption
"They have given us a good re¬
turn in the past," he said, "and
and
construction
since
they represent basic indus¬
tries
upon
activity
whose
and
well-being the peacetime economy
strength
of
the
United
States
depend
in great
measure, we believe that the longrange future holds excellent
and
military
peaks, he said. He warned, how¬
that the anticipated progress
ever,
of business should not be expected
this
better than
a
Mr.
year
may
show
10% gain over 1954,
Dacey said.
"Many of the larger companies,"
"with an excellent cash
flow, are in a position to be a
little
more
generous
than they
have been in the past on dividend
distributions. You may think that
an 80 to 85% rate of operations is
on
the low side—but look at the
he added,
weekly tonnage figures instead of
the weekly operating rate.
"Consider what these companies
able
were
to
earn
in
1954
when
operations averaged
of capacity and actual
tons of ingots and castings pro¬
duced were down 21% from the
1953 record high total."
unwavering upward
an
trend.
r
"While
earnings of the steel
Combined
follow
to
promise for them."
companies
expenditures
expenditures,
by a continuing rapid
increase
in
population, are ex¬
pected
to
reach
new
all-time
bolstered
and
hold
we
market
that
cycles
business
must
still
be
carefully plotted and watched be¬
cause
they are not extinct," he
said, "we do believe that (irre-"
spective of the party in power)
the
of
credit,
fiscal,
insurance
the
unemployment
price powers
farm
and
Federal
Government,
to¬
gether with the stimulus that can
be
provided—if political expedi-:
requires it—by expansion
ency so
of activities in such fields as pub¬
lic construction, flood control, rec¬
lamation
utilized
and
gyrations
be
can
irrigation,
fashion
such
in
of
industry
ranges
about 71%
economic
the
confined
will
that
within
be
the
cycle
narrower
recorded."
incomes
net
of
the
class I railroads are also expected
"at least 10%," the
to increase by
than have heretofore been
Personal Progress
DONALD
H.
President
and
L.
of
Co.,
&
Valenta
elected
Vice-
RANDELL,
Director
has
Inc.
Frank
been
Vice-President of Natural
Resources Fund, Inc. and Natural
7. D. C
of
Canada
Fund,
Frank L. Valenta, President
INVESTMENT
two
COMPANY
open-end
nounced.
A balanced mutual fund
over
300
merly
investing in
bonds, preferred and
common
stocks selected to provide reasonable current
CANADIAN
Mr.
mutual
Randell
Inc.,
of the
funds
was
of
:y stone
an¬
for¬
Assistant Manager of the
department of Home
investment
Insurance
Company.
income with conservation and the
possibility
Custodian Fund;
"T
«
long-term growth of principal.
■
FUND
I
Conseci ti re <| iar
eily Dividend
(WiKOHoieaM.
STOCK
FUND
is
BOND, PREFERRED AND
A mutual fund
COMMON STOCK FUNDS
common
investing in diversified
Keystone Company
a
vide
U. S. mutual fund designed to pro¬
a
diversified,•^managed investment
in stocks selected
stocks of well-established
on
the
basis of pos¬
sible
companies selected for the possibility of
The
com¬
better year
in 1955 than in 1954, when strikes
Resources
K.
con¬
to 'be
seems
another
panies "should have
indicated that his in¬
Mr. Dacey
this
an
that
corporate earnings.
vestment
sors
be
year
Discussing the outlook for other
industries, Mr. Dacey said: J
basic
the 5 to 6% gain forecast
total
for
last
over
surpass
will
added,
result, he
or
.
ties & Research
in
share. Some
may be
exchanged for,
per
bonds, as our 1955 'Fore-r
cast'
points out, and — if some
plans being
considered become,
realities—a further lift coulcf be
y,
and railroad
profits
may
preferred stocks
refunded, with
Na¬
of
almost
by
income
com¬
mittee
tional
1954
railroad
1955, William
J.
earnings
Pittsburgh & Lake Erie
s,
investment
managers
Ohio, for instance,", Mr. Dacey
share
1033 THIRTIETH STREET, N. W.
WASHINGTON
executive
conference
Combined
0IHIC DEVELOPMENT SECURITIES CO.
fund
some
official.
memberoLthe
executive
price
One set manufacturing
he told shareholders,
company,
now
cost
man¬
agement's judgment.
securities
in
600%
over
color television
problem.
.
the., £ftd
at
of
TV-Fund
tion to
1953.
$156,418,155
approximately
"This," he continued,
automation
compared
$256,249,343
in 1954 this
year,
increase
an
The
Corp.; 48,000 in Mead
Corp.; and 22,000 in Union Bag
and Paper Corp.
<
were
a
reached
eight years."
Tulip. Cup
end
foresaw
"they
observed,
$10 billion.
14,000
shares in Container Corp.; 9,000
in Dixie Cup;- 59,000 in Interna¬
tional Paper Co.; 60,000 in Kim¬
berly-Clark Corp.; 16,000 in 'Lily-
„
he
output of electronics of several
volume
Cod
Assets of the fund at the year-
their predictions. "Where¬
billion dollars
total,
held in ^Cham¬
were
pion Paper and Fibre
dustries
a
1,175 shares.
by
CHICAGO, 111.—A sharp upturn
in the earnings of key heavy in¬
and
electronics
of
Investors, Inc., annual report.
increased
39,000 shares
ADMINISTERED FUND
science
This is shown in the Fundamental
shares
Total
THE FULLY
the
participation
in this growth, results have not
only
proved
the soundness
of
their
judgment,
but
have
ex¬
the
a
He pointed out that
public.
created the Fund for
6.7%
proportions
Fund
the
while the organizers of the Fund
foresaw the tremendous potential
Bstablithed 1930
J20 Broadway, New York 5, New York
common
of
shares
berly-Clark Corp., were increased
by 30,000 shares and Mead Corp.
possibility of relatively
high income. For Free
in
additional
of the leading mu¬
tual fund companies is illustrated
by the fact that holdings in Kim¬
garded by
information folder and
RESEARCH
PAPER
Thursday, March 3, 1955
.
.
Fund Official Sees Gains for
Mutual Funds
NATIONAL
.
long-term growth of income and principal.
participation in 'Canada's growth.
Send for a free booklet-prospectus by
mailing this advertisement to
ELLINGTON
«J^FUNJ>
50 Congress Street, Boston 9, Mass.
Please send
your
ten
me
prospectuses describing
Organization and the shares of your
Funds.
Name
CALVIN
Monoged and Distributed by NORTH AMERICAN
E>-il5
Russ
:
•
San Francisco 4, California
or
BULLOCK
Established 1894
COMPANY
Prospectuses available from Investment Dealers
Addreti
City
Building
SECURITIES
ONE WALL STREET.
NEW YORK 5
20c
a
share from ne* in-
vestmenl
able
the above
"Investment Company Managers since 1925" '
Representatives: Boston'Chicago'Dallas* Los Angeles • New York 'Washington, d.C.
pay¬
31, to stock
of record March 10,1955.
Num.
State
Wholesale
income,
March
WALTER
Address-
k
A
L
MORGAN.
President
■
Volume 181.
Number 5408
.The Commercial and Financial Chronicle
.
.
1059
creased
Group Secur
Sales
Triple
Group
r
record
for
the
of
than
triples
the first
current
This
28.
sales
quarter of
cording to Herbert
1954,
a
MORE
capital
current
assets
are
re¬
at
gain
of 30.5%
figure
year.
During
the
over
the
on
the
8,951,-
date
same
period
last
share¬
holders increased 20.7% to 32,600.
"Dividend
payments
from
in¬
come
to
during the quarter amounted
$916,288, bringing to
749
the
since
total
such
of
Group's
incorporation
in
$400
million
Wellington
its investment
in
cording to its 26th annual report
recently made public.
The company's holdings of bank
Dec.
over
.
valued
at
last
31,
up
—
$14,911,410
$5,165,909
$9,745,501 investment in
six months previ¬
a
this
THAN
$1,250,000
1954
Fund
tions
31,
that
than
more
opera¬
10%
of the
Fund's outstanding shares are held
in fiduciary accounts.
Portfolio changes appear on the
inside spread of the attached re¬
Other changes
port.
lows:
included
5,000
Co., N.
Trust
Bank
shares
Y.;
of
were
Jan. 31,
fol¬
as
of
N.. Y.;
Shares
2,564,610
2,505.290
20,360
20,075
of Feb. 27, 1955.
as
TOTAL
NET
assets
of
T.
Rowe
in
this
of
N.
Y.
include:
National
Other
36,000
Bank
Bankers
Trust
Transamerica
tional Bank of
National Bank
shares
value
share
per
also
increased
substantially in value from $17.12
on Dec. 31, 1953, to $25.64 on Dec.
31, 1954, a gain of 50% during the
year.
be
the
truth.
John Kalb
members
of
Stock
Exchange,
a
organized
1946
in
then
and
left two years
in
ago
to
order
establish
America."
job,
and
8,001,
for
management
told
shareholders
in
that
bank
had
stocks
John Kalb
been
the
report
co-
Planning and
its
product,
successfully
accom¬
he
reason
can
hour
you
of
no more
million
the
same,
or
the
than
to
in¬
York
Stock Exchange firm.
We
declines
amount
involved
tion costs the
does at
we
We
so.
at
same
retail
it
as
wholesale, and that is not
may
differences;
fee
a
fully reflects these
but
of
have
never
schedule which
charging
in
the
the
Bank
Fiduciary
beneficiary, we are
small step in the right
the
to
a
vs.
There
is
only
one
gave
which
and
it
is
*
*
*
*
<►
are
growth
for
its
Prospectus
shareholders.
upon
us
other
real
ques¬
concern,
bankers
big
so
d^vel-
tives
honorable!
were
to
made
them
Chicago
—
Atlanta
Los
nine
banks
which
out
Trust
and
believe
do it
many
administration
local
We
that
the
not
large
agency.
This
indi¬
a
continue
the
state
the
for
banks
small
not
in
thing.
that wealthy
mean
will
a
few
central
a
is
personal
better than
or
Anything
banks
banking in general.
benefit
(2)
ten.
so
or
to
go
in
the
they
management
not
administration
agree
of
that
the
of
small
amounts
necessarily unprofitOnly in the trust field has
money
able.
-
is
and
accounts
small
Savings
savings
account with
an
companies
companies
will
will
loan
de—
will
win
banks
panics
Insur-
$5.
enter
enter
a
into
into
a
a
policy-
holder
menu inn
mutual
diversified
fund
with
A
a
portfolio of
securities
selected
long-term
GROWTH
The mutual funds have be¬
mutual
fund
for
turn
of
as
as
an
re¬
IN COM K
obtainable without
undue
capital and income
large
risk
of
able
prineipal.
major factor, and
a
in
break-even
the
even
new
Corporation, 200 Berkeley St., Boston, Mass.
In
Established 1925
Please send
a
Prospectus
on
to
on
Citv
>
•
we
$50,000
a
some
they
host
a
is
Ventures due 1960 priced at 100%
ac^
of
prevalent
appear
friends.
Their
now
with
of
the
scope and
quality of their service,
There could not be a more favorable atmosphere in which to work
for the betterment of the adminis about
all I
We
what
it
have
000 000
tell you
can
Fiduciary
high
hopes
for
17-year
3V2%
alsfpriced
1972
debentures
at 100% and
accrued interest
Proceeds
the
from
sale
of
the
debentures will provide additional
working capital for GMAC for the
purchase of receivables.
Expansjon
jn
business
Motors
^e
a
concerned
one
will
do
misgivings.
for
and
us
Although
Bankers
Association
apply
to
problems,
dealers
has
war
of
since
General
the
of-
end
materially increased
the ne'fed for GMAC financing fa-
cilities,
resulting
increases
in
in
notes
substantial
bills
and
re-
ceivable and borrowings,
The new five-year debentures
are subject to redemption at prices
ranging from 102% through Sept.
30, 1955, to the principal amount
on
and after'April 1, 1959.
Re¬
demption prices for the 17-year
debentures start at 103 %% and
decline to 100% on and after
March 15, 1968.
no
we
have
it
might
been
as
your
own'
our
efforts
small
trust,
from
attractive
Blyth Group Offers
Utility Common Stock
2)
600,000
South
This
"the
may
not
—v
trust field.
be
entirely
But surely
cannot rest on our oars,
and be
five-year
period
volume
annual
increased
Dec.
stock
March
awarded
was
at
group
plans
company
about
to
the
sale
competitive
of
to
invest
$17,000,000 of the proceeds
the
stocks
common
system
companies
in
to
financing
construction
a
of
be
Notes and
by
the
bills,
company
$985,383,106
1949 to
Dec. 31,
of
as
$2,521,881,787 at
1954.
before interest and discount
and income taxes rose from $64,839,000 to $143,561,000 during the
sama period,
come
certain
Yankee Dundee Mines
Common Stock Offered
used
by
part of their
Any
programs.
re-
mainder of net
proceeds will
appiied
reduction
of
the
indebtedness
of
Wellington Hunter Associates
offering as a speculation 750,-
are
000
the
the
to
outstanding
be
parent company
Central
and
rppistprpH
hnlfUnP
West
Corp.,
rninnnnv
Utility
cnrrmanv Act
lin
Central
o(
Public
all
owns
of
of the out-
Power
Service
Southwestern
&
Light
^
Co.
Gas
stock
common
oiriov,omo
Co.,
Oklahoma,
of
&
Electric
and West Texas Utilities Co.
Co.
Cen¬
tral Power and
West Texas Utili¬
ties operate in
portions of Texas;
Public Service Co. of Oklahoma in
homa,
southwestern
and
eastern
the
For
portions
sidiaries
to
of
&
Texas,
period
1950-
operating
rev¬
and
sub¬
company
increased
$104,523,685
from
and
$72,756,consoli¬
dated net income from $11,520,112
^h'
„„nifnl
be
cover
v v.x
used
of
sale
the
by
for
payments
j/uj uivi.vu
y^
Pvninration
work
caPltal ancl exploration work.
Yankee
pnfJappri
deposits
Dundee
in
Mines
thp Pxnioration
containing
^
Ltd.
for
gold,
is
ore
silver,
lead and zinc, and in the explora¬
tion
for
uranium
deposits.
The
options to
purchase 22 Crown Granted min¬
has acquired
company
eral claims situated in the Nelson
Mining Division in the Southeast
of British Columbia, and it
also
holds
terest
in
an
undivided
several
45%
uranium
in¬
claims
Saskatchewan, Canada.
The
issued
shares
at present has
outstanding 1,522,440
company
and
of
common
stock.
Thomson & McKinnon Add
(Special to The Financial Chronicle)
$18,166,433.
Dividends
to
lu
""j
price of
the
from
will
company
Yankee
a
share.
per
proceeds
stock
of
at
cer^ain property, and for working
in
five-year
the
of
Gas
Louisiana.'
consolidated
1954
281
in
Ltd.
corner
Southwestern
and
Okla¬
Mines
cents
Net
—
Holding
ct, ow s a i oi tne out
Jr~
7
standing shares
40
shares
common
Dundee
the
South
a registered noiaigcompanyun
der
the
pubhc
to
31,
held
from
on
1.
The
in
shares of Central and
Corp. common stock
value) at $33.50 per share.
($5 par
The
n
$6,923,427,310.
receivable
West
enues
and
the
the
GMAC consolidated total annual
operating income increased from,
$100,974,000 to $209,671,000 in the
public sale yesterday (March five-year period 1950|-1954.
In-
for
I
the average
to
An underwriting
group headed
jointly by Blyth & Co., Inc., Smith,
Barney & Co. and Harriman Ripley & Co., Incorporated, offered
Electric
products
to
During
1950-1954
acquired by the com¬
pany increased from $4,093,393,981
Arkansas and
and
receivables purchased-in 1954.
have
receivables
Some
which do not solicit
P]dsed 96% of."the dollar volume
trust
will
doubly rewarding.
break
industries, it has been
that the most money is
made
be
true of
'
that
other
Name
Address
the
business below $100,000.
services
man.
is
point out of reach of
estimate
.proven
□ Incorporated Income Fund
Q Incorporated Investors
the trust field
of average means.
man
banks
know of
The Parker
or
one,
Only
whose
prime objective is to
the amount of $1,000
a profit¬
in the investment field,
although
participations
average
less than $3,000.
come
IIVESTOIIS
A
in
more.
INCaiSPOIIATKU
every
them
do
We
lifelong relationship with
ISCORI'OIUTIill
trust
situation has the attention
these:
were
of
benefits
open
Angeles
to have
The points
(1) We propose to improve the
quality of trust administration in
ance
—
small
problem, and small banks
visory authorities, who greeted us
with ill-corcealed suspicion until
they were convinced that our mo¬
ing
Lord, Abbett & Co.
The
idea
as an
That seemed to bother the super¬
nartments
partmenis.
New York
th*s world so powerful
whose time has come.'
,
in
that premise been accepted/Commercial banks have special check-
request
ave been reminded of the old
& that
There is nothing in
Fund.
...
|*
authorities
hav£ granted their approval that
we
That
prefer.
objectives of
this Fund
long-term
capital
and
income
responsible
many
about New York's Bank
which
one
anywhere
Common Stock Investment Fund
+
$50,000,000^ ffve-yea^3%ede-
of
GMAC finances the distribution
°f new products manufactured^ by
gained a lot of ground in three General Motors Corp. to dealers
other states have asked first of short
years, we believe that we *or ,resale
and finances dealers'
all.
What are the small banks have developed
something which re*ail instalment sales of new
doing in the trust business if they is sound as well as
promising. If General Motors products and used
cannot equip themselves to hanany of you should see merit in umts of any make, financing redle it; and conversely, why have
the plan of the New York State lated to automotive vehicles corn-
tion
viduals
Investment
?°
the
Large One
(3)
A
proving the condition of the small
istration of small trusts.
The Small Banks
pptj^n
^
we
gone to coordinate the plan,
we have had a sympathetic audi-
pretend that trust administra-
does
Fund
received
we
Wherever
have
sayi
ignore these facts when
banks
Affiliated
it.
an
Natu-
one.
unit
per
the
$10,000.
talk half
small
a
cost
can
been
undertaking,
Te
very
as
this
which
Stanley & Co. comprising 274 in¬
vestment
firms
is
offering for
public sale today (March 3) $250,000,000 of General Motors Accept-*
ance Corp.'new debentures.
The
and
$10
rapidly as
increases.
ment economist at his former New
ties
to his
in
we
railroad analyst to su-
a
money
original activi¬
security analyst and invest¬
return
right
were
that
trust and the small trust departwith a beneficiary, whether ment is a popular cause. So many
are
discussing a large sum Pe°Ple have helped us along, and
must
now
Wellington
Motors Acceptance
Debentures Offered
^
It costs
we
has
ingenu-
doubt
any
dispelled
Inve stors
plished, and for this
Bank of Boston.
as
his
founder of
8,000
Bancorporation;
that
feels
'
Kalb
Mr.
of
*'
had
ularly investment management are
perfect examples of the law of
oping a fund in which none of
them expects ever to participate?
Guaranty Trust
Co. of N. Y.; 10.850, Republic Na¬
tional Bank, Dallas; 10,000 North¬
our own
finance.
of
we
reception
direction.
the New York
If
has
that he is
announces
Chase
Bank
which
the
Planning
Corporation of
National
First National
further from
fields
Nothing
Co., N. Y.; 29.000,
Corp.; 18,000, Na¬
Detroit; 3,333, First
of Chicago;
10,000,
Y.;
have tried every modern
technique which others have deor
1955.
$250,000,000 Genera!
accomplishments,
we
Trust administration and partic¬
To Kalb, Voorhis Go.
3,200,
Cleveland
Trust
Co.; 22,000. First Bank Stock Cor¬
The
could
taking
John Kalb Returns
Detroit;
west
in all banks,
same
regardless of their size.
many representatives of the
banks worked three years
Manufacturers
poration;
agement is the
Investors
N.
until
our
was
paid Feb. 28, 1955 to
stockholders of record Jan. 31,
w
25,000,
of
$1.20 in 1954. A quar¬
dividend of 33 cents per
share
The present fee schedule in New
expenses
holdings
of
and
York State is the
We
compared with $2,209,229
year earlier.
The net asset
as
one
Company
content with
veloped
.
1954,
50,000 shares of National City
Bank
facing
are
set one fee schedule for all banks,
consists
group
we
Price Growth Stock Fund, Inc. in¬
to $4,086,654 on Dec. 31,
creased
firm which he
vestment
doing
so
facts.
rally,
are
represented
in Wellington's
portfolio.
The largest single in¬
banking
than it does in large
In
$45,230,752 r pervise
Outstanding
of Shareholders
returning to Kalb, Voorhis & Co.,
and
cost
more
banks.
more
1954
$50,352,471
29,000
Corp.
institutions
of
little
banks
small
diminishing costs. It costs
Jan. 31,
1955
11,000
shares of Transamerica
Thirteen
a
in
-
Total Net Assets
shares of Chase National Bank of
N. Y.; 29,000 shares of National
City
A Tins! Investment
Fund
\Purchases of bank stocks in the
Bankers
1953
7
page
New York's Bank Fiduciary Fund—
Semi-
category
ously.
period
jrom
Marking the largest underwrit¬
*ty can devise. The mutual trust
ten corporate debt
same for
financing opevery „investment
company is a techthe six months ending
bank, large or small. This suggests niQue which borrows freely from ®rstion of the year, an underwrit1955/
The report also that the cost of investment man¬ the successful experience of other inS
group
headed by
Morgan
for
Jan.
new
B-3 dur¬
according to the
Report covering
Annual
noted
of
invested in Keystone's
was
759,800
bank stocjss by more than $5 mil¬
in the last half of 1954, ac¬
were
Continued
ministration
Combined assets of the 10 Key¬
Funds amounted to $289,-
lion
stocks
rose'
stone
To Bank Stock Portfolio
increased
assets
year ago.
$39,595,-
Wellington Fund Adds
on
ing
No.
The
a
payments
1933.
Fund
date
same
ac¬
$86,581,997, about 52%
greater than the $57,026,939 total
of a year ago.
Shares outstand¬
ing at Feb. 28 totalled 11,699,409,
717
the
Low-Priced Bond
Group's
ported
net
Fund's
volume
President.
■
good
attractive
$120,846,000 in 1954 to a new high
of $401,740,447 on Dec. 31,
last,
equal
to. $24.60
a
share, from
$280,894,213, or $19.97 a share, on
Anaerson,
R.
their,
or
terly
The
Inc. reports
$9,143,875 during
of
of
because
;
earnings outlook
yields.
ended Feb.
year,
more
■
Securities,
sales
the. first .quarter
fiscal
:
47
amounting
to
$1.04
MIAMI, Fla.—Philip
R. Ander-
Central
son
has joined the staff of Thom-
and South West common stock in
son
& McKinnon, Shoreland Bldg.
per
share
were
paid
on
*
43
Continued
from
the
in
3
page
■
1
V
In
_
■
and real estate
which
ury,
equivalent amount of funds avails
about
billion
$16
'
also
their
banks
commercial
The
added
to
holdings of tax-exempt issues, ab¬
sorbing about 30% of the net in¬
crease in state and
local govern¬
banks
commercial
the
Furthermore,
increased
indebtedness.
ment
holdings of mortgages by
$1V2 billion and provided
their
about
additional
some
funds
through
market
vestment
strength
construction in recent months
sufficient to guarantee that, operation.
indebtedness this
gage
This
conclusion
ers' in
securities
even
though,
many
lieve, there
and
may
Net
in¬
margin, the largest increase
any single postwar year.
The
policy
of active credit ease fol¬
lowed
by the Federal Reserve
during the most of last year made
reserves
easily and freely avail¬
able to the banking system.
The
is
difficult to appraise
very
effects
ments.
funds
quisition
40
new
year
-
the supply of
on
for other
Possibly
the
of
the
of
available
funds
invest¬
fairly large part
a
required for the
ac¬
bonds
by
the
of
new
long-term investors was obtained
sionary forces in the
for
briefly
funds
ment
ings
1955
for
be
follows:
may
as
long-term
the
and
sum¬
both
invest¬
flow of
basis.
sav¬
the
investment
able for their
outlets
funds; the
avail¬
commer¬
cial banks will again provide sup¬
port
the
to
investment
markets
but
probably on a scale signifi¬
cantly below 1954; however, busi¬
ness
corporations will probably
be buyers of government securi¬
ties, on balance, in 1954. As was
case
last year,
credit and debt
management policies will play an
important role in determining the
environment
markets in
in
the
the
Presumably
instalments
the
net
investment
in the amounts
reduction
investment later in the year will be
only a fraction of the total amount
of 40-year bonds issued.
Flow
funds
of
Savings—The flow
of
the
into
major savings in¬
stitutions will be modestly larger
1955 than it
in
last year. Sav¬
was
ings and loan associations
in
period
a
of
are
still
growth
dynamic
and the increase in their funds in
1955
be considerably larger
Trusteed
pension
may
than
in
1954.
funds and state and local govern¬
ment retirement funds also appear
be growing more
to
rapidly each
and the growth in life insur¬
year
ance
assets
company
that
exceed
1955.
paid. On balance,
available for other long-term
increase this year; the savings in¬
stitutions will
continue
to
find
ample
instalment
an
on
cash balances will be restored and
expected to show another
are
bonds
payment
Our appraisal of the investment
demands
new
of
is likely to
last year.
On the
other
hand, the increase in deposof mutual savings banks may
Prospective Investment Demands
its
The recovery in business activity
-ic
ecovtry in Dusmess activity
the closing months of last year,
be smaller than in 1954, particu«npr»iiiation anH thp huvlany " speculation and tne buy-
the
strength
currentlv
r,
by large
users
disnlaved
cuirenuy cuspiayea
of investment funds
£"^,lebL.^n.a.5Tf.n\„d^isAon?
by the
Treasury
increase
indicate
all
in
the
a
smaller rise than in
demands
Commercial Banks
vestment
tion
decline, but the decrease
is expected to be of fairly moder¬
ate
proportions.
Funds generated
reinvested profits
internally by
depreciation
and
will
be
larger.
However, gross working capital
requirements, which declined in
1954, will expand in 1955, and out¬
lays for plant and equipment will
be about as large as they were
last year.
State
and
spending
>how
on
government
capital programs will
another
increase
in
1955.
Consequently, the increase in taxexempt obligations outstanding is
expected to be as large as in 1954.
,v.v.vv.^ w
ao laiscaa in iwi.
A
big imponderable is whether
the
r
the
the
of
number
and
cutbacks
some
local
government
commercial
of
banks
to
market
reasons,
is, for a
likely to be
significantly smaller in 1955 than
1954, when they added about
$9
^
billion
their
to
security
mortgage* portfolios^
and
Bank
re¬
not
likely to be as free¬
ly available as they were last
year.
A policy of active credit
ease
is appropriate in a period
serves
is
are
business is declining, but it
when the business
not suitable
trend
is
The recent imbusiness
activity
to have been reflected in
upward.
in
provement
appears
a
of
ot
liberal
less
the
tne
credit
credit
viding
policy
straint
the part
on
authorities
autnonties
to
reserves
pro?!?/T_an.if0LFederaIald tortu- hardly
cation will
cause
the In¬
in
system.
proposals for a highway
and
Markets—The contribu¬
investment
when
local
^
1954.
the
in
pro-
banking
pre
be-called one of credit
and
the
authorities
re-
will
undoubtedly provide sufficient
re-
serves
crease
in the money supply during
takings. In
1955.
However,
assumed
that
estimates,
these
we
will
have
not
be
major deterrents to spending and
borrowing
sorrowing
local
on the Part of state and
on tne part ot state ana
governments
in
have also assumed that
1955.
no
We
financ-
securities
to
take
care
of
it is
some
not
in-
neces-
s^ry to
assume a restrictive credit
policy to conclude that the corn-
poil(T 10 conciuae tnat tne combanks are n?.1- llkelL^
find their
reserve
as
position in 1955
easy as m 1954.
Business
trends are,
of
course,
held
ment is
was
in
in
is
1955
be
to
of
the
an
banks
which
flationary
contributed
the
to
business
put in their
but the outlook for
lending
appears
more
favorable
than
pressures
Consequently,
did
it
a
ago.
year
commercial
the
banks may be inclined to husband
of their resources for their
more
lending operations.
improvement
the busi¬
in
outlook and the recent firm¬
ing of interest rates
also
may
re¬
duce the desire of the commercial
to
lengthen
portfolios,
,
,
their
invest¬
especially
.,
,
.
The
cumulative
foreeoine
factors
savings institutions
*
market in
curities
effect
operating
the
in
in¬
different ways, again
depending upon investment pol¬
icy decisions. However, if busi¬
ness continues to improve and if
the investment situation develops
grees and in
about the
assumed
manner
in
the projections for 1955, one con¬
clusion
ward
seems
quite clear: the
pressure
page
up¬
long-term
upon
11
is
that
Personnel
the
may
All
not find
the
commer-
rates
is
likely to persist
time to
some
come.
of
recognize
us
as
the
that
the
modern
machines of
war
re¬
engineers or scientists for
their operation or
maintenance.
Also, the military services carry
quire
certain kinds of research and
would
organi¬
zations. These technical positions
banks
work
which
be unsuitable for civilian
much
must be
in
1954, this reduction will be
to some extent by a shift
from liquidation to accumulation
of government securities on the
part of business corporations. In
1954, business corporations were
paying taxes on 1953 profits, but
were accruing taxes on lower 1954
filled, and well filled, if
the military services are to func¬
offset
tion
to
effectively.
Our
concern
is
insure, however, that technical
talent
is
not
wasted
on
nontech¬
nical work.
I'm afraid that many
10% tax payment in the second
people do
not fully appreciate the essenti¬
ality of large numbers of scien¬
tists and engineers to industry.
For example, during World War
II one of the favorite questions
of local draft boards was, "If we
draft this man will your plant
shut down?" or, "If we draft this
man will your producion fall off?"
Of course, the answer so far as
any one individual is concerned
is probably
"no".
There is no
such thing as the indispensable
man.
However, if you multiply
one
man
by even a relatively
half
small number and take these men
profits and at lower effective rates
(giving effect to
niration of the
excess
the
ex-
nrofits tax}
Plratl0n ot me excess proiits tax).
TreasUrrobhgationsbyan®st^
$2 to $2.5 billion in 1954.
prospect is that this trend
will be reversed in
business
1955
corporations
and that
make
modest additions to their holdings
of
government
securities,
even
may
after allowing for the additional
of
calendar
1955
Corporate
profits are expected to show some
increase this year with a corre-
used
to
from
one
vessel
to
line kept failing, or
to
l'ail
and
oil
hot
transfer
The
threatening to
couldn't
we
vapors
another.
find
out
the
pipe thickness and
why.
Engineers
job to
measure
put
were
on
to calculate the stresses involved.
Microscopic examinations of
pieces of line that failed were
made.
Chemists analyzed the oil
streams involved looking for im¬
purities that might be causing the
and
they also analyzed
pieces of the line that had failed.
The original line was made of
high alloy steel designed to oper¬
ate at 1150°F. It kept cracking in
interim measure, until the real
difficulty could be found, an or¬
dinary carbon steel line was in¬
the
support to the investment markets
tax
curtailed.
is becoming more com¬
plex and technological. Many of
development
likely to provide
of
industry
out
not
ability to change operations or
emergencies
is * sharply
I recall that during the
last war we were making at Whit¬
ing a substantial percentage of
the country's production of tolu¬
ene for subsequent
TNT produc¬
tion.
Difficulty developed time
and again wih one length of pipe
handle
places and all attempts at
welding were unsuccessful. As an
clear
commercial
Needs
military services have a definite
for a good many scientists
and
engineers.
War as well as
may
the
the
need
™ ^brnmenTsethey
like to sell in
that
com¬
employs
ernment Securities—While it seems
The
forces
vestment markets in different de¬
interest
Military Services
The Secondary Market for Gov¬
mated
a
trouble
The
of
Also, prices of government
securities are lower now than they
were during most of last year and
this may make some of the sav¬
ings institutions less eager sellers.
of
the
for
ease
.
ine. foregoing tactors is tnat tne
as
upon
be made
during the course of the year by
prospective borrowers and lend¬
ers, and upon changes in the ex¬
pectations of the financial and
business community. Also, various
classes of interest rates may feel
the
used.
since
,.
much was done along this line in
are
authorities,
fiscal
host of decisions that will
not like¬
are
thousands of
them. It took 238 engineers plus
113
additional staff people two
years to design and build the first
Boeing 707 jet transport. Accord¬
ing to Business Week (Dec. 18,
1954) RCA wants 300 more engin¬
eers;
GE wants 400, and IBM
wants 700. According to this same
article, one large company offered
to hire the entire graduating class
at MIT, numbering about 900 en¬
gineers. Thus, it seems clear that
the demand for engineers exceeds
the supply.
Under these condi¬
tions, it seems foolish to insist
that these highly trained people
spend two or more years on a
nontechnical military assignment
where their
training cannot be
panies
appearance,
1954.
from
the
upon
policy decisions by the cred¬
and
it
with
gineers. Each of the aircraft
are
increase in 1955.
apparently has run its course. A
resurgence of large business bor¬
rowing is not probable unless in¬
ment
analysis
alst>
but
Industries Will Be Affected?
decline in business loans last year,
banks
funds
strength of the business recovery,
Consumer
The liquidation of business inven¬
The
depend not only upon the demand
supply situation for invest¬
and
If Wai Comes—What
improvement
commercial
likely to show
ness
•
the
in
this
of
satisfied
Continued
for expecting a
outlook.
loan
tories,
position to provide support to
investment markets oh the
scale as in 1954.
the
contribution
the
loans
last year.
conclusion
by commer¬
cial banks to the investment mar¬
kets
form¬
prospective supply of and de¬
ly
It is recognized,
that
developments
require a reappraisal
reason
securities
by the savings
investment demands
possible.
Another
com¬
Further¬
mand for investment funds is that
economic outlook.
of the
it
of
although some temporary
interruption in the upward move¬
course,
abroad may
the
by
1954.
in
Conclusion
time
some
banks
medium-term
The
ahead,
of
a
same
upon
as
economy are
for
pros¬
institu¬
tions, the business corporations
are
generally interested only in
short
maturities.
Consequently,
the task of lightening the govern¬
ment holdings of savings institu¬
tions may not be as easy in 1955
entpolicycan ^tiLTTeXTd'thek'holdin^oi
The
programs, pending clarification of
the details of the Federal underour
$26.2
rise to record,
heights in 1955. Furthermore, the
commercial banks will hot be in
ment
of
1955.
porate net
further
goods
inomen-
rnornen-
^,noitcurtsnoctaojtoned.wortstf com-
a
issues may show a
Greater
greater
acquire
for investment funds in 1955. Cor¬
new
durable
consumer
neauire
snouia
an? dehbtUUding;'nd
further
of
mS
persist
to
reasonable
banks
that
government
portfolios in 1954 and in the proc¬
ess acquired
substantial amounts
all-important in the formulation
of credit policy. An early end to
the
recent
upturn
in
business
would probably be followed fair¬
ly promptly by a renewal of an
actively easy credit policy. In our
judgment, however, the expan-
smaller
the
$23.7
by $3 to $3.5 bil¬
a
unlike
the
lengthened
their
1.9
investment
for
demands
money,
funds are likely to
more,
$24.3
-
the
facility that was the case m
Including the demands of
Treasury
for
long - term
ernment
1955
1.6
extend their maturities
Investment Outlook for 1955
perhaps
erly
likely
well.
$23.7
1954.
pect this year, compares with an
acquisition of $6 billion of gov¬
bil¬
marketable
term
-
by the shift of other Treasury ob¬
ligations to the commercial banks
easy reserve position, and the ac¬ or to other buyers. However, part
companying decline of short-term .was doubtless obtained by the
interest rates to low levels, en¬
temporary depletion of cash bal¬
couraged the commercial banks ances and part was obtained by an
not only to add to their holdings
increase in bank loans to dealers
of government securities but to in government securities who sold
outlook
is
gov¬
$22.9
It
the
by the
ment securities
lion,
*
1954
$21.3
Treasury bonds
marized
(in
lions):
in
large assistance provided
as
funds
the following
by
bonds—gross amounts
hie this
1954.
local
state and
long
policies of the monetary
authorities helped to make possi-
in
shown
long-term
requirements for investment
corporations, real
Treasury
The
banks
for
ments
ernments)
holdings of mortgages and secu¬
rities, which totaled over $9 bil¬
lion in 1954, was, by a substantial
commercial
of long-term
financing by the Treasury in cornwith other net require¬
parison
funds (business
estate, and
*
and
Thursday, March 3, 1955
. .
.
Attempting to trace in detail:
impact of these forces upon:
commercial banks in 1955. In the long-term interest rates would be •
first place, the swing in business beyond the scope of this study..
corporation holdings of govern¬ The course of interest rates will
mercial
mortgages.
to the investment markets
people be¬
be some decline
as
bal¬
into
corporate
be.' converted.
some
may
business
corporations
may
not
fully offset the reduction in the
support to the investment market
likely
to
be provided
by. the
An impression of the
importance
1953
commercial bank
in
will
1954.
year
warranted
seems
creased loans to dealers and brok-
Thd increase
mort-. relative
exceed the record growth in
rates,
dation to accumulation of govern¬
securities
on
the
part of
in 1955 for $1.9 billion of 40-year
3% bonds through a refunding
seems
the increase in outstanding
accruals.
tax
ment
.the long-term investment market
-
building and
in
in
However, this shift from liqui¬
are
somewhat larger
However, the Treas¬
offered no long-term
in¬
the
to
highway program.
new
The
in 1955
owners
bonds in 1954, has already tapped
ing will develop this year under
the
-
term
be
to
than in 1954.
able for investment in other bonds
rise,
sponding
Also, with the increase in short-
combined
therefore,
total,
expected
Outlook for 1955
mortgages.
building and con¬
short-term securities.
*
and
of
rate
Commercial and Financial Chronicle
ances
Factors in the Investment
Major Factors in the Investment
in
The
struction later in the year.
■
mm
the
*4
1060
'
out
of
of production, the efficiency
operations is jeopardized and
many
The trouble with this was
stalled.
that while using this kind of
the
operating temperature
limited to 1050°F,
pipe
was
100° lower than
production of tolu¬
The
engineers finally recommended a
different type of alloy steel from
that specified originally; also, as
a
result of detailed and cbmplex
mathematical
calculations,
they
desired, and
ene
was
reduced accordingly.
recommended
different
types
of
support and additional expansion
loops.
were
over.
These
recommendations
adopted and the crisis was
Successful operation was
achieved.
It's
hard
for
some
of
us
in in¬
dustry to understand the thinking
of some people along these lines*
It
seems
obvious to
that if
us
a
war-supporting industry peeds a
certain number of engineers and
scientists
in peacetime , the re¬
quirements
of people with these
skills is bound to increase in
time.
And
war¬
yet we find people in
Selective
Service
and
other
branches of the government who
tell
us
that if
war
comes we
all have to release some
will
arbitrary
percentage of our technical staff.
This might be true in a few non-
Volume 181
defense
Number 5408
.,
The Commercial and Financial Chronicle
.
industries, but in most* of
them the needs will increase. The
people
have
we
in
come
with in selective
service
contact
uni¬
are
formly sincere in their desire to
do a good job. It must be that they
do not have
all the facts.
this conference
understanding
things work.
Lessons
Since
twice
From
*
fairly tough going
be
have
to
us
how
the
what
they did. They had
small population,
tively
Germans
absence of
such
vital
certain
industrial
machine,
dominated
Dr.
In
productive
highly
a
in
certain
chemicals,
notably
1914.
resources
major factors in their
was
fields,
relatotal
a
a
both times
two fronts,
rubber, and
they had to fight on
ability
see
accomplished
as
One of the
had
each time—it
order for
in
the
world
they
prior
to
talk several years ago,
a
Roger Adams explained how
they
did
greatly
it.
increased
that
their
percent-
technical
might mention in passing
I
men.
they
Basically,
of highly
ages
volved
trained
their
of
one
wards
for
de
and
also
financial
high
the
example,
in-
techniques
prestige
great
comparatively
top sc.entists-for
Professor an
Herr
to
rate,
the
enabled
the
any
entists
German
sci-
machine
war
operate in spite of their short-
of
age
and
men
materials,
raw
For example, the Haber ammonia
supplied
process
fertilizer
which
New
next
National
comes,
Plan
Reserve
explosives
formerly
and
had
this program
on
its
details.
will dis-
However, there
which x sh0uld
had
face
to
ful
supply
limited'
know,
an
with
As
I
stand
used
technical
on
assignments.
do not
believe that
leave
I
this
hands
we can safely
completely
in
the
the military.
Past ex-
of
perience,
lective
particularly
service,
confidence
does
be handled in
a
with
se-
not lead
these
that
to
things will
resulting
manner
in maximum effective
of per-
use
with
sonnel
specialized training
law, or top-level administrative ruling, spells out a
method
for
determining where
unless
the
each individual
country.
best
can
The
should
be made by
which
is
not
military
civilian
authority
an
dominated
and
in
his
serve
determination
which
interests
by
the
essential
represented.
As
fflustration
an
happened
the
at
in
the
of
what
let's
past,
technical
has
staff
look
of
the
Standard Oil Company located at
Whiting, Ind. As of the first of
this
54
year,
gineers
inducted
ices
college trained
scientists
and
into
en-
been
military
the
had
serv-
by the selective service sysMany of them have substanexperience.
Fourteen more
tern.
material.
there
is
such
As
Before
leave
we
of
Germany,
we
it
instructive
to
tary
or
in
so
people
the
the
question
might also find
mention
which
refused
scientists.
late
in-
an
their
to
Elon
President
mili-
listen
Hooker,
the
of
to
the
Hooker
Electrochemical Company, used to
tell a story about the German use
of
poison
Haber
of
North
had
to
able for
would
•
a.,
use
at Ypres.
scale
a
1
smaller-scale
a
expected,
small
gener-
n
perimental
as
not
avail-
was
The German
.
on
were
command
break-through to
a
als insisted
too
use
major attack—one that
a
permit
•
the
but pleaded with
high
the channel.
-
Professor
it until enough
use
could
and
Sea.
gas,
German
that
German
recommended
chlorine
the
the
Ypres,
near
the
related
in
stood
trenches
see
He
gas.
he
once
draft.
35
more
break
but
ex-
were
let the
to
through
enoueh
\o7z massfve,
the
tne
a llipc
Allies
could
The
on
on
sdhid^
The
ine
not success-
substantial
situations
may
of techni-
problem of
a
importance.
exist
in
this
of
Similar
other
many
companies.
if
Now
signed
these
men
technical
to
were
work
as-
where
their
training was needed
we
could hardly object But we know
that this is frequently not
the
case.
We don't know what
them
are
is
doing but
fully
one
now
trained
of
of
engineer
"clerk-typist"
a
Army.
all
know
we
Another,
who
in
the
chemical
a
en-
gineer who two years' experience
f„
rn
one
"our
uui
o
uiie
follows:
<scicntific
must -11 be coordin
will
plating
be
"As
old
you
writes^as
refineries wiucs as
leniieiieb,
deduce
can
child
could
and
do
lieve
made
mans
ers
in
One
experts think the
our
handling
example
ifreezing
decree
the premature
Hitler.
developing
fense
was
jet
instead
design
Another
bombers
of
blundscience,
of
airplane
of
of
serious
many
their
Ger-
for
by
was
of-
jet
fighters for
defense. The outstanding one was
their
failure
to
develop
the
atomic
bomb
their
after
_
tists
had electrified
the
scien-
scientific
u"
world
by
atomic
fission
their
discovery
just
before
of
the
War.
Even
their
with
the Germans
close
these
handicaps in
to
came
winning
mistakes
and
materials,
uncomfortably
raw
two
wars.
It
viously enlarges vastly the amount eral, State and local—in the fourth
of expansion of output and de- quarter of 1954 were at an annual
mand required to restore maxi- rate about $10.7 billion below the
mum employment and production, requirements for maximum em¬
two years
in
Total Production
i
+
would
be
least
at
27
going to school.
With salaries
and wages for nontechnical peopie at present levels, and considering that some people do quite
well in business and industry
with no collegiate degree at all,
it seems likely that many capable
people
will
forego
additional
training which might be of substantial
Under
value
to
these
*or die
middle
+r?n r^L tn ^61 hii
^ Jr
"
4
'
The fourth quarter 1954 annual
rate of gross national product,
while about the same as the first
Quarter 1953 level, was about $30
country, billion below the maximum em -
the
circumstances,
it
-
Pl°y^ent and production level for
seems clear to me that a two-year tbe
required period of military serv- ?.n°"
ice
will
cost
the
-Jrfi
'
t
^^lzeia
country
A
S
*;jnfioVI'
ands of scientists and engineers,
™
apa
A ! LA
nf
p
J Z?
services,
mal iong-range trends in working
hours).
Th-
.t.™
deficit
hillinn
in
the
annual rate o£ total output, in the
fourth quarter of
1954
correlated
w£ shoa c be ab e ,to keaP them
well
with
WhTerhflth.eyfHPd
true
unemployment plus underdue to undesircomposition of
thc
brief
nfl
time
•
f
y
toeb
n*
trained personnel. The need today
is great.
creasingly
Most
and
It will
greater
of
the
products
of
amount
excess
tbo^oJq1 utilization of labor
^
able shifts in the
technically
nvniiahie
indnQtrv
the
become
time
as
new
empi0yment caused by the
reces-
sion.
in¬
are
such
service,
situations
dis-
are
Sracefully.wasteful.
There
to
lose
are
sisht
ment
and
.production,
of
increasing
an
One
is
easy
that
level of technical training—more
and more with Ph.D. training,
The
second point is
that the
requirement of two or more years
in
the
ous
military services is
deterrent to such
cation.
that
It
our
civilians
dom
with
of
their
can
choice
them
higher eduremembered
scientists
considerable
free-
in
organizing
authorities
in
Army
the
two years if we want to do so,
we
their
after
civilian
lives
for
but
j
cannot tell them how to
ganize
are
The
careers.
put
be
must
potential
seri-
a
tQ
partioipate.
to
Anduofe
employ-
consumer
have maintained an adequate
consumer spending.
This
$19.6 billion deficiency in
U
Lhicago Analysts to Hear
er
CHICAGO, 111. —E. J. Hanley,
President of Allegheny Ludlum
Steel Corporation will address the
luncheon meeting of the Invest-
before
incomes
duced to
a
in
consumer
in
taxes
ings
and in
having
v.
p
their
army
training.
Many of these men are at an age
when they are anxious to settle
down and get married. This urge
has prevented more than one man
,
^^hrlndt" w?n
Ahlbrandt, will
R
,
accompany
Mr> Hanley- An 18 foot display of
At
the
24th
meeting
will be the subject.
sav-
value
of
in
the
been
reduction
in
maintained, if
Federal
spend¬
ing had been held to $1.3 billion.
Instead,
the
slash
in
Federal
spending
The
than
about $12 billion.
was
slashes
severe
spending had
the
a
in
Federal
far greater impact
bare figures
reveal; be¬
cause
every
dollar of Federal
spending induces, $2-$3 of private
spending.
Comparing the fourth
of
1954
with
the
first
quarter of 1953, a reduction of $12
of
dollars in the
annual
rate
Federal
outlays was accom¬
by the development of a
$30 billion deficit in total annual
panied
output.
If
maximum
production
employment
had
been
and
maintained,
the higher level of Federal spend¬
ing
requisite to this end
have been consistent with
would
more
a
nearly balanced Budget, especial¬
ly since in the absence of reces¬
sion smaller tax reductions would
have been necessary.
The
Council
of
Economic
Ad¬
visers, unfortunately, has present¬
ed
no
analysis of
the
needed
levels of public outlays, consistent
with maximum employment and
one
of their serious derelictions
under
the
mandate
of
the
Em¬
ployment Act.
rate
of
ings were desirable, these
the
sav-
shots
indefinitely
cannot
arm
and in huge magnitudes take the
consumer incomes.
The failure to expand consumer
incomes
and
savings
central
maintenance
There
are
ROUGE,
La.
—
Feder-
cient
of
as
for
sources
(Special to The Financial Chronicle)
The
sufficiently
onset
the
yet
even
expansion
comes.
the
to
no
a
of
Advisers
do
ducting
levels
and
recession.
signs of the
nearly suffi¬
consumer
offices in the Louisiana National
Bank Building. Officers are E. H.
is
the
their
of
most
failure
The changes in the
inventory
picture have been largely respon¬
sive to, rather than the causes
of,
not
appraise needed
incomes; this
striking example of
to
fundamental economic mal¬
adjustments.
nomic
been
comply
with the
Williams, President, Wilburn V. mandate of the Employment Act
Lunn, Vice-President and Allison that they set forth needed levels
of purchasing power.
R. Kolb, Secretary-Treasurer,
Stanley F. Burk, W. Clegg Cole,
Government Demand for Goods
Woodrow W. Dumas, Robert F.
and Services
Fly, L. L. Hollandsworth, O. V.
Even if consumer outlays had
Moss,
Svlvester W. Munn and
Robert H. Williams are associated expanded sufficiently, public outwith the firm.
lays for goods and services—Fed-
The Council of Eco¬
Advisers
has,
seriously in
the recession
sion.
an
Profound
error
I
believe,
in terming
inventory
forces
—
reces¬
produc¬
tivity, income flow, agricultural
decline, etc.—have been at work,
and
these
the
Advisers
do
not
squarely face, nor do the Advisers
appraise the significance of these
profound forces for the immediate
or
long-range future.
Savings
in-
consumer
securities business from
and equipment would have been
sufficiently higher than it actual¬
ly turned out to be.
President's Economic
ated Securities Corporation is cona
outlays, and
public outlays, had been kept
high enough, the level of business
investment in construction, plant
of
more
the big changes
the
.
was
Federated Sees. Formed
BATON
of
rate
billion in the fourth
.
in
re¬
Pla-mo£p^e necessary growth in
March
Tennessee Gas Transmission Company
the
annual
an
and
taxes
was
spending by changes
or
in
consum-
taxes
$12.4 billion deficiency
^12:15 ^. quarter of 1954.
Whether
not
in the Georgian Room at Carson
pirie Scott & Co
c
w
Vinrf
King,
^
or-
before
of
,
to
extent—successful
actual rise
They have not set
more com^,
*ban /beiF Pred~ expenditures would have needed the Federal Budget in the per¬
®cesssors. ihe ratio of technically t0 rjse,
annual rates, more than
spective of the national economy*.
Fain,®,
m5n
?"ier workers 321 billion from the first quarter
Private Investment Outlays
s"ouid continue to increase. Some 0f 1953 to the fourth quarter of
In the fourth quarter of
1954,
w,a^ must be found to train and 1954. Actually, they rose only
total private domestic investment
ul;iAlze °.Yr scientists and engi- about $9 billion, resulting by the
was
running at an annual rate,
neers Wltn maxin™m effective- fourth quarter of 1954 in a definess.
ciency of consumer spending at about $6.8 billion below the max¬
imum
level.
Of
economy
this,
1 hope that at the end of this an annual rate of about $12.4 bilhowever, about $4.5 billion was
conference it will be possible to ll0nrepresented by inventory liquida¬
lormulate ?ome recommendations
Comparing the same two petion instead of accumulation.
Only
for consideration by Congress this riods, personal incomes before about
$2.3 billion dollars repre¬
sPrmS- The present laws govern- taxes rose only $5.3 billion, at an- sented a
deficiency in new con¬
lng selective service and the re- nual rates. In the absence of the
struction and producers' durable
serve
Forces
are
inadequate, big changes in taxes and in the
equipment.
Changes rnust be made and it is rate of savings which took place,
The deficit in fundamental pri¬
up *° us Y° see *bat Congress is personal incomes before
taxes vate investment was not a
by¬
advised. I think this con- would
needed to rise about product of
inadequate funds or
ference *s a ^ine thing and I am $19.6 billion more than they ac- incentives. If the level of consum¬
SIad to have had an opportunity tually did, or by about $25 billion, er expenditures and
PvDriitiuQ
two points it is
have
would
is
To maintain maximum
an
production without inflation. This
Consumer Expenditures
goes
processes
industry
of
was
$3.3 billion in spending by State
and
local
governments, an ade¬
quate
level
of
public' outlays
billion
I
training.. 1 do "ot think we can P ( j work/°
hours .(resulting
safe * take such a loss. The se- from a !.5% agnnual gr0^th in thi
™nty °f
^ c°untry would, in lab01. force under m|ximum con.
*he lon» iun, be seveiely im- ditions jess a re(juction of 0.7%
Pai.rea*
i,1ieau^ Y131 we cannot per annum to take account of nor-
^Tthi'n^nrf outsMf tne
within and outside
Since there
quarter
thous-
r7Y.ev<;. able-bodied men of their
?bllgatlons t° serve their country
ln case of Yef ' b^ with our
ployment and maximum produc¬
This
was
because
public
spending declined about $8.7 bil¬
lion over this period, instead of
increasing by about $2 billion.
tion.
„
The annual rate of gross nationa* product was $361.8 billion in
years old before he could get his tbe ?*r
£uar.ter ot iy5,5rose
Ph.D. He would be even older if considerably in the second quarhe had to work part time while
then dropped sharply through
graduate
both in and out of government to be held March
and
.
training
With lhe shortage of scientists ment Analysts Society of Chicago about $7.2
1
>
spend
to
12-year
a
a
War II, I be-
This
contem-
undergraduate
necessary
easily take the
well.
Absolutely
n0 technlcal training is necessary
as many of the students are high
•
World
people
and
rdS"xLum7HectivXsdslni"s tTchnicarperlrmant faTdus- ^
to
achieved.
try requires
higher and higher be made*
Again in
for
true
be
level of
is that mili-
nnH
Responsibilities of Government
many
scientists and engineers
is not worth the extra time.
on.
if
Lr ml scbo°l graduates only."
prepared,
were
inrinctripi
consideration
nnn
drain
a
Ger-
nrpnarprt
vvere
The point here
tarv
are
who
manpower
magnitude presents
n'roduced
be
large-scale
M/prp
German attacks
ful.
there
deferred
now
trained
Ger-
umrp
time
addition
problems that
-cally
Results
hlnoLe
th"n
tint nViWirif Jtac
rrtan
In
It must be clear to anyone who
has any understanding of these
courses
mans
in vari-
be reclassified and inducted later.
enemy.
stance
cases
the
potential
a
tional 12 have their
un-
of scientists, and
raw
classified 1A and presumably
will be inducted soon. An addi-
.
will decide that higher education
particularly those with advanced
effectively
are
ous stages of appeal.
In total, this
refinery has lost or will probably
lose 80 engineers and scientists to
plenti-
a
it takes them
time
complete their education,
1Q
nnrtP
I "
military service, it would mean
that an' 18-year-old high school
Qn
comment.
to
you
enemy
manpower,
Cnntinupd frmn
^
49
more
under-
point
Qne
tial
tremendous
add two or
we
the
to
"years
potential
are
from
If
it, the present proposal has
no
provision for insuring
that
technically
trained
people
are
.g
iike
to
made
we
•
one
training.
will be even more true for
people who might otherwise go
on
for graduate work.
If it is
nitrates, largely
from Chile.
It is disconcerting to
think what could happen to us if
be
.
war—if
from going to college even without
the ^ necessity
for military
to
re-
the/University.
At
A
cuss
r
German
military machine—and
might
the
recently announced a proposed
new
National
Reserve
Plan,
these
Germany
the
confronted
mishan-
bet-
a
military people have
our
lose
■Others
•'
The
much
take
The Department of Defense has
how
of
not
I hope
spread
can
ter
wOuld
dling of our scarce supply of scientists and engineers for us to
1061
The
in
pinch put
1953
and
upon
1954
consumers
forced
an
ex¬
cessively rapid drawing down of
savings, as many consumers were
forced
to
spend
reduced incomes.
sonal
™
a
larger part of
The rate of per¬
savings out of personal in¬
was
7.8% in 1952, 8% in
1953, and 8.6% in the fourth quar¬
come
ter of
1953. It dropped to 7.7% in
and to 7.2% in the fourth
quarter of 1954. Regardless of the
1954,
Continued
on
page 50
50
The Commercial and Financial Chronicle
1062
Continued
sufficient level of output
from page 49
mand
and de¬
be consistent with
to
max¬
imum
Responsibilities of Government
Under the Employment Act of 1946
in
saving
of
level
desirable
the
this drastic and precipi¬
reduction worked hardship
long
run,
tate
nowhere do these
claim that the
But
quarter.
substantially
lowance is made for seasonal fac¬
materials make any
unemployment situation has been
and
tors
On
basis
the
of
economic
de¬
velopments since 1952, how would
either.
without defin¬
And
maximum
production,
cannot
determine
current
situation
the
the
for
al¬
when
changed,
composition
of
employment. In fact, the Advisers
systematically avoid real analysis
outlook
of
its
unemployment,
or
causes
clasify calendar year 1954 in cures.
...
My own view is that 1954 could
to the four phases of the
not be characterized as anything
business cycle
identified in the
earlier volumes of
the National other than a year in which we fell
Bureau of
Economic Research—• dismally short of maximum em¬
you
,
#
respect
4% growth in the economy dur¬
ing 1955 would be fairly good; but
we are $20 or $30 billion short
maximum production now, we
a
much bigger growth to
need
restore it.
Council
visers,
in
my
of
opinion,
a
ment
Act
did
not
set
up
portions
casting agency.
It set up a na¬
economic policy coordinat¬
ing body, with forecasting to be
used mainly as one tool for the
To be
of
alysis,
ing their materials,
the
then
revived
expanded
the fourth quar¬
substantially in
ter.
But this
or
to
to
seems
me
high¬
a
ly misleading emphasis.
It is closer to reality to say
the
in
economy
quarters of
the
three
1954 fell further
further
behind
course,"
which
the
advance
the
growth
"par
the
for
higher with
productivity and
in
off in
and
gets
in
Consequently,
worse
first
that
the
we
the
concealed
unemployment
and
shifts in the
of the labor force
mask
adverse
proof
of
unfavorable
these
developments.
of
there
use
some
this
was
than
more
highly
ahead
should
for
and
power,
well.
as
should have
4
million
we
ployed, and another
twice
as
think
that
should
we
1953, and this could never be ex¬
plained simply by looking at the
gross national product which de¬
clined only from $364.9 billion in
1953 to $357.1 billion in 1954.
is
superficial to
measure the upturn in
output in
the fourth quarter simply by com¬
paring it with the third quarter.
It must also be compared with the
level that would represent max¬
imum
ter,
output in the fourth quar¬
which
higher
was
level that would
mum
than
represent
the
maxi¬
output in the third quarter.
An
"upturn," if not sufficiently
sizable, may be entirely consistent
with
sofar
a
deteriorating situation in¬
as
the upturn does not
keep
with the growth factor, or at
least begin to remedy the accrued
up
deficiencies
growth.
of
previous
lack
of
Some of the
already cited
unemployment, for ex¬
ample, show little basic improve¬
figures
on
ment.
have
\xk
dif¬
those commonly used to
whether the economy is
ing
or
the
materials
measure
expand¬
For example,
the President's
contracting.
in
Economic Report, prepared
by the
Council
of
Economic
Advisers,
if
the
positions.
needed
ployment
is
there
no
is
whether
an
not
defined
or
at
for
asserted
current
The
it.
Advisers
mum
the
Council
does
not
of
are
as¬
no
meas¬
Economic
define
maxi¬
employment.
tell
even
eco¬
outlook is
standards against which to
ure
all,
testing
not because there
or
em¬
us
current
They do not
whether they regard
level
of
unemploy¬
as far too
high, far too low,
just about right. Thus, when
they say 1955 looks good, we can¬
not tell whether they feel that it
ment
or
would
be
good
if
is
base
no
desirable?
come are
What supple¬
programs?
analysis,
a
is, in the
vehicle
for
prudent and sensible development
consistent
national economic
and
But
programs.
purpose
of such
the
policies
and
programs, manifestly, is
promote
the
utilization
of
to
our
labor force and other resources in
ways
which avoid excess waste
of manpower and excess waste of
opportunity for enjoying maxi¬
mum
output. It would seem ob¬
vious
beyond the need for
mentation that
mulation
no
to
be
reduced
but
the
me
my
opinion, this is
not
only
of
the
rejec¬
philosophy
a
also of the legal mandate of
Employment Act. It seems to
to be
an
avoidance of respon¬
sibility because national economic
policies and programs
ed
to
achieve
are
design¬
objectives, and
adequately concrete objective
stated by the Advisers.
no
is
•.
Maximum
production
means
ernment
for
goods
and
com¬
ing year?
I do not believe that the rate of
economic upturn in gross national
product and in the industrial pro¬
duction
index
during
quarter of 1954
can
the
servers.
cated
This
largely
quarter
expansion
production,
steel
upturn
upon a
tentative
systematic for¬
the
Economic
automobile
impact
other
24 of the
page
of
with
and
predi¬
was
rapid fourth
upon
industries.
Economic
forecasts
On
Report,
by
made
Advisers
with
re¬
such
spect to investment, consumption,
can
have
any sound
and government spending, even if
achieved in actuality, do not add
what
to anything like sustained ex¬
pansion of these indices at the
or
and
programs
point of departure, un¬
less that point be a definition of
quantities of employment
and production connote maximum
employment and production,
what
allocations
power
mum
of
consistent
are
and
purchasing
with
maxi¬
employment and production.
The
importance
needed
levels,
labor
trends in
the
maintaining
ment
and
size
of
up
fourth quarter 1954 rate.
An
assumption that, with luck,
in 1955 as a whole
might have a total output 3%
the
economy
me
under
half
employ¬
are
na¬
tional income shaping the
problem
of
maintaining maximum pur¬
we
progress¬
1955,
than
But those who
what would
seem
assump¬
less
more
efficiently
ditions far short of maximum
em¬
ployment and production.
The Budgetary intentions of the
Federal
Government,
as
now
an¬
nounced, combined with the basic
weaknesses
come
in
the
in¬
consumer
structure, the continuing de¬
of agriculture's posi¬
and the high improbabilty
terioration
tion,
that
the downward
trend
of fun¬
damental business investment will
be reversed under these combina¬
tions
of
to
seem
circumstances,
offer
little
would
prospect that
the economy as a whole will
sufficient
age
growth
in
aver¬
1955
to
prevent the gradual accumulation
hard-core unemployment.
of
All this
But
be
can
propriate
changed by
policies
and
ap¬
programs.
these
kinds of programs and
policies seem to me to require a
much
ence
basic
to
a
the
economic
much
more
alysis and
firmer
need
quirements
of
an¬
adher¬
defining re¬
Employment
—
the
Act—than the Advisers under the
Act have thus far
displayed.
restore
and
ment
maximum
production
employ¬
by the end
of
lion level for 1954 as 'a
whole.
Total output would need to reach
annual
an
rate of
about $390 bil¬
lion in the fourth quarter of
1955,
or
more than
8% above the $361
billion level in the fourth
quar-'
ter of 1954.
Unemployed
other idle
sive
their
to
realities
unemployed
in
1954
as
take
comfort
result from
this
our
whatsoever
excess
entries
sorb
of
the
required
to
not
against the levels of 6 months cal
of
the
who
trends
labor
have
if
unused resources
are
enormous
strength, and thus without
exces¬
sive strain to place a large
enough
offering upon the altar of free¬
dom. The fact that we could now
produce at
an annual rate $30 bil¬
lion higher than we are now
pro¬
ducing, and can raise this much
further in the year
ahead, makes
it unconscionable in the face
of
the
rising communist threat
of
any
the
our
fields lie bare.
to let
This is
challenge of the Employment
Act;
and
more
it
is
important
as
important
now
than
or
ever
challenge and
it.
Join Coffin & Burr
(Special to The Financial Chronicle)
in
rate
amount
absorb
Harold B. Needham and John H.
Wall,
ad¬
Jr.,
of
State
have
Coffin
60
&
joined
Burr
the
staff
Incorporated,
Street, members of
the
Boston Stock
Exchange. All were
previously with Vance, Sanders
& Company.
been
economy
an
if
But
other
potential asset, because they give
us the
power, if brought back into
use,
to
enlarge
our
economic
With Louis A. Love
force
the
economy
ignored.
are
manpower and
BOSTON, Mass.—Philip B. An¬
kept
by reces¬
sionary
conditions,
absorb
the
growth in productivity which is
certain under current technologi¬
out
progres¬
derson, Timothy G. Holden, Henry
L. Johnson, Jr., John J.
Magee,
unemployment, absorb new
into the labor force, ab¬
those
a
a
expansion, have, like the Eco¬
nomic
Advisers, made no esti¬
expansion
and
manpower
resources are
threat
pro¬
of
or
progressing, measured
fairly optimistic
existing policies and
of
of
How
level would
whole.
mates
maximum
of
used under general economic con¬
grams, register a 3% higher level
of total output, at least in the first
the
of
1954
reading the Economic Re¬
I believe that we might,
port.
productivity
task
hours
where
not to evade
as
of
be
from
such
slightly
relatively
before to rise to the
changes in the composition of
not
into
areas
cannot
a
production?
chasing power? Are
force
productive
workers
tion—and certainly no more pessi¬
mistic than what one can derive
issues
3%
unemployment,
to
these:
are
share
as
competent collection of
historical data on recent economic
How
reductions
to
of
oughly
shaping
forced
the
The Economic Advisers have
pre¬
pared for the President a thor¬
crucial
with
above
defining
explicitly
required by the Employment Act,
may
quickly be grasped by a
reading of the Economic Report.
these
of only
that the level of true
of
fourth
be maintained
throughout 1955. Nor do other ob¬
ing
a
demand
the
evaluation
re¬
expansion
contrasted
To
of
indica¬
present
of
of
In
and
argu¬
unemployment
by 2 million,
trends. But a reading of the Re¬
or whether
they feel that it would
port, because it does not define
be
good even if unemployment
needed levels, reveals no discus¬
were to grow by 2 million.
sion
were
the implications
are
trends
unemploy¬
1955, the level of total output
tions for employment, unemploy¬
for 1955 as a whole needs to be in
ment, hours of work, productivity,the neighborhood of $378
billion,
total production, private
invest¬ or
about 6% above the $357 bil¬
ment, levels of consumption, gov¬
the
of
policies
cent
I
services, and savings for the
The Employment Act
final
What
upon
ments to consumer income, espe¬
cially for low-income families, are
within the range of sound
policies
policies
level of
basis
nomic condition
suring
policy and
would result from these
different
tion
Furthermore, the economic sit¬
uation must be evaluated in
terms
of a wider
variety of indices than
unemployed.
program
But
might
Vastly
ferent consequences of
two
unem¬
person
thpre
QUESTION
are
which to analyze purchasing pow¬
er needs.
What trends in farm in¬
ultimate
employment means
optimum
employment, different
people may define it in different
ways. One person may think that
that
is
i
.
avoided,
and
If maximum
million
it
far
The purpose of the Employment
is to promote maximum em¬
much unemployment in 1954 as in
Similarly,
pur¬
how
they be defined?
best
The
principle
chasing
em¬
ployment, production and pur¬
chasing power, while considering
certain other important objectives
the year
This conclusion is not vitiated be¬
may
fining the needed levels of
ployment, production, and
much
were
run,
terms
of
carrying out the objectives of the
Employment Act, is served by de¬
Act
third
in the short
in
purvose,
force.
labor
quarter of
than in the first quarter.
cause,
What
production
in¬
an
temporary layoffs, etc. This level
unemployment would be com¬
plicated by further pressing of the
gather
they feel that the economy
ought to grow in 1955, and that it
and
An
work
that
employment
QUESTION 3
prob¬
in
employment might be consider¬
ably lower than 6V2 million, due
.
and
these
result
above 4 million in 1954. The level
of full-time Census
Bureau un¬
analysis does
Under
the
circumstances,
al¬
though I believe that the meaning
of the Employment Act is unmis¬
as
expansion, recession, contrac¬ ployment and maximum produc¬ will grow some. But this is far takably clear, I feel that the Joint
tion—which I deem in accord with too
Committee might consider advis¬
vague to provide a sound basis
tion, and revival?
the Employment Act to be im¬
for either a formulation or a cri¬ ing the Advisers to
In the context of the current
carry forward
peratively
valid
goals for
the tique of policies or programs. How the responsibilities which the Act
economic situation, I do not find
American economy. And because much
must
we
grow to
absorb imposes upon them.
these four categories particularly
the end of the year, allowing for
productivity?
A growing labor
I believe that the Employment
meaningful. They seem to me to
the growth factor, found us fur¬
force? Those now unemployed?
be based upon a type of economic
Act requires that needed levels of
ther from these
goals than the
Only the rash would attempt
analysis, as applied to the current
empJoyment, production, and pur¬
start of the year, I am less opti¬
precise answers to these ques¬ chasing power be defineo at least
American economy, which is now
mistic for 1.955 as a whole than I tions.
But no definition whatso¬ for the
inadequate. This type of analysis,
full year in which the
was for 1954 as a whole from the
ever of the needs reflects no an¬
I
believe, does not sufficiently
January Economic Report of the
viewpoint of levels of unemploy¬ alysis adequate to set forth
measure changes in
prob¬ President
the economy
is
submitted.
They
ment.
lems or devise solutions.
should now be defined for at least
against the need for growth; it
Whether 1954 should or should
tends
to
measure
Maximum
changes
too
1955;" For certain long-range pro¬
purchasing
power
not be called a year of recession
much with reference to fixed pre¬
means, in the final analysis, a flow grams, and as a further guide to
or contraction, it certainly was a
vious levels, and therefore tends
and dispersion of income among our problems of economic
adjust¬
year in which we lost ground by
to produce many misleading con¬
various sectors
of
the
economy ment,
it is desirable to project
the tests which I believe to be
clusions.
which will promote equilibrium some
needed
levels for
several
most valid. At the end of the year,
For example, the gross national
at
maximum
levels
of
employ¬ years ahead—say to 1960.
But
our
total output was further be¬
product hardly changed at all in
ment and production. The Coun¬ such projections are of little value
low maximum output than at the
the first three-quarters of
cil of Economic Advisers under¬ unless they are used to shed
1954;
light
start of the year.
At the end of
and in the fourth quarter it was
takes no general analysis of this upon immediate
problems, needs,
the year, there was more hard¬
about 1% higher than the average
problem—if they did, how could policies, and programs. If a happy
core
unemployment than at the
for the year as a whole and some¬
they possibly have ignored the portrayal of what we might ac¬
start of the year, the allocation of
what under 2% higher than in the
whole
problem
of
a
declining complish by 1960 is used as a sub¬
the labor force was more disturb¬
third quarter.
By measurement
Agriculture in a Report which stitute for a clear definition of
ing, and the corrective distance
against previous fixed levels, one
purports
to
deal
systematically what we should begin doing now,
that we needed to go to restore
would say that the economy moved
and
comprehensively with
the the happy portrayal becomes a
either maximum employment or
current problems of the American
mere
sideways—neither expanding, re¬ maximum
distraction, and to that ex¬
production was great¬
ceding nor contracting — for the
economy? But this is not surpris¬ tent is injurious.
er.
b— i
first three quarters of the year,
ing: If the problems of maximum
one can
in
1954,
nearly enough
hard-core
mean
lion,
sure,
not define needs.
because
output
above
unemployment for 1955 as a whole
might average around 6V2 mil¬
the Economic Report. But they do
not stem from the economic an¬
production be defined. From read¬
would
would
random
to
seems
total
3%
be
meet
to
ment.
policies and programs set forth in
avoid the mandate of the Employ¬
ment Act that needed levels of
of
be
not
in
crease
tional
formulation of policy.
there are
a
number
should
lems. -An expansion in these pro¬
fore¬
a
level
the
would
expansion
forecasts,
surrounded
by
hedges. But the Employ¬
Ad¬
Economic
If
1955
many
healthful
more
exists.
now
that
The Economic Advisers make
few
a
labor force
and less wasteful than that which
if the economy
even
and, in addition to all this,
product mix in the use
restore
of the
but does not grow enough.
grows
if
The
increase
Thursday, March 3, 1955
.
.
vances;
the
current deficits in output and de¬
mand increase, and these deficits
may
a
of
year
the
whether
or
ago,
but measured
changing levels re¬
quired for a maximum economy?
What are the implications if the
a
we
the casual reader for the months and year ahead is
the impression of a distinct re¬ good or bad or indifferent. If we
vival or expansion in the fourth nave maximum
production now,
families.
QUESTION 2
fined
ing
would convey to
millions of families, as could
demonstrated by look¬
ing at the figures on the distribu¬
tion of savings among American
upon
be clearly
employment. If maximum
employment is not defined, maxi¬
mum
production cannot be de¬
or
against
.
~
(Special to The Financial Chronicle)
MENLO
PARK, Calif.
—
S. E_
Robb has joined the staff of
Louis
A. Love Co.
Volume 181
Number 5408
.
The Commercial and Financial Chronicle
..
10«S
The following statistical tabulations
Indications of Current
latest week
or
month available.
week
Latest
AMERICAN
IRON
Indicated
steel
AND
STEEL
operations
(percent of capacity)
Mar.
Previous
Week
INSTITUTE:
Wees
§90.0
6
or
month ended
Month
ingots and
AMERICAN
castings
PETROLEUM
(net tons)
Mar.
70.7
42
and
condensate
output—daily
BUILDING
'
stills—daily average
output (bbls.)
Gasoline
Kerosene output
Distillate
fuel
(bbls.)
117,511,000
Residual
2,608,000
2,622,000
(bbls.)
Feb. 18
12,640,000
12,561,000
12,256,000
8,663,000
8,141,000
Pacific
174,203,000
166,285,000
21,438,000
26,118,000
•95,870,000
Feb. 18
46,710,000
46,689,000
49,931,000
AMERICAN
RAILROADS:
loaded
ENGINEERING
(number
of
CONSTRUCTION
of
(no.
S.
655,035
643,859
635,653
618,623
610,906
602,299
Wholesale
Retail
Feb. 24
$312,218,000
$193,862,000
$258,481,000
207,823,000
130,168,000
160,389,000
115,113,000
Feb. 24
104,395,000
98,092,000
110,611,000
Public construction
'« State
and
municipal
63,694,000
Feb. 24
OUTPUT
Bituminous
(U.
coal
S. BUREAU
and
lignite
Pennsylvania anthracite
DEPARTMENT
STORE
42,901,000
70,720,000
20,793,000
27,372,000
8,885,000
8,690,000
8,540,000
7,245,000
Feb. 19
598,000
654,000
597,000
ELECTRIC
Electric
output
FAILURES
INDEX—FEDERAL
=
(in
(COMMERCIAL
100
Feb. 19
IRON AGE
steel
Pig iron
(E.
90
*92
95
Export
refinery
tin
(New
10,003,000
8,396,000
Head
(St.
(East
MOODY'S
U. S.
178
205
255
204
4.797c
4.797c
Louis)
St.
$56.59
$56.59
$56.59
$36.33
$35.50
STATES—DUN
BOND
29.700c
32.775c
86.875c
85.000c
CONSUMER
15.000c
15.000c
12.500c
OF
14.800c
14.800c
14.800c
12.300c
11.500c
11.500c
11.500c
9.260c
97.29
99.62
in millions
96.38
96.55
1
109.42
109.42
109.97
109.60
1
112.56
112.93
113.89
114.85
1
110.88
11G.88
111.62
111.62
1
109.79
109.97
J10.15
103.24
Mar.
1
104.48
104.48
104.83
103.13
Mar.
1
107.62
&Mar.
1
Mar.
1
Mar.
1
2.76
2.75
2.70
——Mar.
1
3.20
3.20
3.17
3.19
DEPARTMENT
3.03
3.01
2.96
2.91
ERAL
3.12
*3.12
3.08
3.08
RESERVE
Mar.
1
3.18
3.17
Utilities
Group
Group
Industrials
MOODY'S
U. S.
;
—.—.——:
BOND
YIELD
DAILY
corporate
A* HI——II"—-I
I
Public
Group
Utilities
Industrials
MOODY'S
(tons)
Percentage
of
Unfilled
AVERAGE
107.98
109.97
110.15
110.70
111.25
Personal
EXCHANGE
111.62
Single
loans
payment
'
Charge
accounts
STORE
SALES—SECOND
RESERVE
DISTRICT,
BANK
OF
N.
Y.
(average daily),
3.17
unadjusted
3.16
3.13
3.18
Sales
(average daily),
3.15
seasonally adjusted
3.13
3.10
3.08
1
397.3
404.0
416.6
427.5
249,452
246,171
226,971
217.650
262,282
261,128
252,346
232,388
95
93
89
433,801
360,787
ON
EXCHANGE
N.
T.
107.18
107.27
106.75
1,644,715
1,700,303
1,772,913
1,035,184
$84,358,655
$86,644,582
$86,516,910
Feb. 12
1,488,175
9,051
1,432,752
7,916
1,474,801
6,021
987,704
Other
1,424,836
1,468,780
$68,402,918
$36,894,623
r—Feb. 12
Feb>
J2
376,080
367,340
368,980
294,440
376,080
367~340
Feb- 12
——
by
552,910
Other
368,980
616,063
632,740
Less
280,820
196.0
*84.6
53.0
52.1
*26.2
25.0
34.3
33.4
STATES
Month
—
industries
employee
—j?
•
*eD-
0
728,590
16,459,410
17,188,000
677,590
16,794,760
17,472,350
616,950
Total
409,910
23,458,400
24,075,350
Total
PRICES
2,130,770
3,355,750
964,860
5
396,330
346,860
350,620
201.680
5
1,615,250
1,905,020
2,844,230
751 420
Feb-
5
2,011,580
2,251,880
3,194,850
BY
U.
—
46,900
38,300
28,820
Food
S.
348,470
557,270
860,000
218,840
——__.—Feo«
transactions initiated off the floor—
5
395,370
595,570
888,820
OF
b
619,250
690,535
914,792
344,887
b
139,395
74,730
54,520
...
-
-rr..
—,
purchases
5,eb-
—
868,160
246,040
•—*eb-
b
748,525
764,465
977,270
,.L_.
254
248
_
-
Fruit
o
887,920
865,595
1,052,000
3,368,845
430
crops
.
427
275
276
260
207
237
263
.
_
216
224
274
Meat
238
products
279
269
240
269
264
282
156
218
$281,000,000
$275,000,000
278,439,067
278,749,814
274,848,511
23,806
33,942
75,097
$278,462,873
$278,783,756
$274,923,609
514.078
527,857
561,209
$277,948,794
products
Poultry eggs
285
$281,000,000
Dairy
257
163
;
;
237
263
258
animals
$278,255,899
$274,362,399
3,051,205
2,744,100
637,600
438,127
2,917,280
205
222
—
-
Truck
230
202
425
__
239
204
—
241
241
__
and hay
-
Cotton
383,607
——.»x*cp«
sales
sales
239
INDEX
15:
—
_
Livestock and
101,130
14.4
269.6
AGRICUL¬
of Jan.
237,740
Feb-
sales
547,540
23.8
16.4
*274.6
244
FARMERS
DEPT.
products
grain
Feed grain
18,900
b
388,250
*24.6
16.7
276.1
.
Crops
Tobacco
b
—
6.7
50.2
26.2
payments
RECEIVED
All farm
953,100
5
purchases
4.1
Q.6
*48.3
Unadjusted-
1,909,780
Feb-
5
4.7
6.6
48.9
rental income
interest income and dividends
transfer
NUMBER
Feb.
sales
in¬
,
TURE— 1010-14=100—As
;—Feb,
—
social
85.5
9,266,350
ACCOUNT
sales
for
income
nonagricultural income
8,856,440
OF MEM¬
SPECIALISTS:
specialists in stocks in which registered—
FOR
contributions
4.7
labor
Personal
.
Feb-
round-lot transactions for account of members—
Total
Feb>
purchases
Other
sales
Total sales
WHOLESALE
LABOR—
5,138,702
U.
1,555,787
-r-u-—
_
——
NEW SERIES
(1947-49 = 100):
PRICES,
'
—
b
582,625
486,290
454,170
275,100
b
Feb>
Short sales
2,712,245
3,226,755
4,681,500
1,353,867
v
U.
S.
DEPT.
3,294,870
3,713,045
5,135,670
1,628,967
OF
Processed
commodities
110.3
110.3
110.1
other than farm and foods
93.4
93.0
98.1
103.2
103.2
103.7
105.2
Feb. 22
Feb. 22
85.4
85.4
86.7
93.3
115.4
115.4
115.2
114.3
^Includes 763,000 barrels of foreign crude runs. §Based on new annual capacity of 125,828,310 tons
Jan
1
1955, as against Jan. 1, 1954 basis of 124,330,410 tons.
tNumber of orders not reported since introduction of Monthly Investment Plan.
•Revised figure.
at
of
Jan.
face
any
31
amount
DEBT
LIMITATION
(000's omitted):
that
may
be
outstanding
time
Outstanding—
gross
public debt^
obligations not
_
—
owned
by
the
_
110.5
93.7
*eb- 22
foods
Meats
—As
Total
STATUTORY
Treasury
iz
*eb-
products
GOVT.
Guaranteed
Feb. 22
commodities
Farm
S.
Total
Commodity Group—
All
$287.0
*198.1
52.9
UNITED
income
Proprietors and
purchases
Other
All
THE
surance
Other
Feb-
Total
*$289.3
84.3
26.0
IN
OF COMMERCE)
(in billions):
personal
Service
(SHARES):
MEMBERS
Short sales
Total
$29,981,000
1.97.4
(000's omitted)
Wage and salary, receiptts, total
Commodity producing industries
Distributing industries
STOCK SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS
OF
31
of December
294,440
—Feb-
Total
*$30,509,000
$291.1
!
...
Government
Short sales
Total
*24,361
$46,722
24,126
dollais):
IN CIRCULATION—TREASURY DEPT.
Total
dealers—
—
sales
19,970
$43,811
SERIES—
of
(DEPARTMENT
980,810
$67,746,797
Feb. 12
TRANSACTIONS
Other
$26,752
*19,370
$29,788,000
NEW
(millions
—
As of Jan.
transactions initiated on the floor—>
Total
*$24,441
19,367
COMMERCE)
December
PERSONAL INCOME
6,894
1,479,124
$70,812,044
Short sales
Total
*110
34.2
OF
of
$39,984,135
Feb. 12
sales
Other
98
113
$24,468
__
103
112
24,917
MONEY
-Feb. 12
sales
of
79
81
101
100
adjusted
Nondurables
107.25
BERS, EXCEPT ODD-LOT DEALERS AND
Total
188
184
105
$43,835
(DEPT.
Month
340,049
Feb, 12
Total Round-lot sales—
Transactions
83
Total
Number of shares—
ROUND-LOT
1,720
84
Sales
sales
Round-lot purchases
Total
3,411
1,746
Inventories-
COMMISSION:
—-—
Short sales
2,219
3,042
MANUFACTURERS' INVENTORIES AND SALES
dealers—
ACCOUNT
7,350
2,407
106
unadjusted
seasonally
STOCK
sales
Short sales
Other
419,484
Feb. 12
AND
7,195
ODD-
—
Number of shares—Total sales—
FOR
Stocks,
Stocks,
Durables
dealers (customers' sales)—
total sales
short
EXCHANGE
Average==ll>()—Month of January:
(average monthly), unadjusted
-
other sales
TOTAL ROUND-LOT
4,366
7,658
FED¬
1
1
value
Other
1,649
4,689
1947-1949
Sales
Feb. 12
by
5,831
1,631
FEDERAL
—
Sales
—
sales
10,341
5,398
2.53
—Feb. 19
Feb. 19
—Feb. 19
—
Customers'
of
—
3.21
Feb. 25
SPECIALISTS
Customers'
i
.
3.32
Number of orders—Customers'
Round-lot
22,187
10,296
dealers (customers' purchases)!—
Odd-lot purchases by
Dollar
$29,537
22,014
1,720
credit
3.56
of period
Number of shares
Dollar value
$29,209
3,518
loans
3.46
—
SECURITIES
—
Odd-lot sales by
$81,072
1,616
loans.
——-Feb. 19
—
at end
AND
DEALERS
*$77,653
2,420
modernization
Nonlnstalment
109.79
110.70
and
goods
3.16
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
LOT
22,661
4,787
consumer
Repair
107.27
110.34
Other
3.28
—
109
=
11,689
*22,130
5,668
Automobile
3.29
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
$46,722
"11,712
31:
credit
3.43
——_—.—
(tons)
$43,811
RE¬
Mar.
activity
orders
i
ASSOCIATION:
(tons)—
Production
9,543
credit
3.48
INDEX
PAPERBOARD
received
Orders
11,981
3,134,000
10,396
of Dec.
term
3.30
Group—
COMMODITY
NATIONAL
$29,592,000
SERIES—Esti¬
1
Group
$40,103,000
22,467
FEDERAL
1
—.
3,166,000
$30,125
THE
intermediate
Mar.
—
_
8,623,000
5,926,000
1,857,000
of December
Mar-
Railroad
8,509,000
COM-
Mar.
—Mar.
Baa
:
OF
Service credit
J—
9,647,000
THE
credit
consumer
Instalment
AVERAGES:
Government Bonds
Average
107.80
Total
OF
and
as
1
—Mar.
——
3,238,000
OUTSTANDING—BOARD
SYSTEM—REVISED
—Mar.
Group
867
$11,431,000
6,285,000
$43,835
short
Mar.
1
Public
DEPT.
-
SERIES- -Month
GOVERNORS
SERVE
mated
Mar.
Baa
917
$17,526,000
dollars):
CRF.DIT
-Mar.
_.
939
28.825c
90.000c
DAILY AVERAGES:
A
86
60
$77,516
36.100c
91.250c
15.000c
Feb. 23
:
Railroad
IN
Total
36.250c
:
Aa
72
11,503
—Feb. 23
Aaa
87
-
22,173
Feb. 23
at
PRICES
130
BRADSTREET,
Manufacturing
Feb. 23
corporate
87
13,181
(NEW)
&
January
Wholesale
29.675c
—Feb. 23
Government Bonds
Average
of
INVENTORIES
(millions of
$24.33
32.700c
at
at
79
450
$37,872,000
...
INCORPORATION
BUSINESS
$56.59
$37.00
32.700c
:
Louis)
192
98
413
9,044,000
liabilities—.:
Retail
l
204
114
3,154,000
.
liabilities
INC.—Month
4.634c
Feb. 23
at
313,284,145
4,391,000
service
MERGE NEW
4.797c
Feb. 22
at
$345,352,829
32,068,684
368,830,373
$11,636,000
liabilities
BUSINESS
QUOTATIONS):
at—
York)
(New York)
Zinc
number
liabilities
Commercial
UNITED
9,725,000
Feb. 22
:
J.
HI
I—II
_
copper—
Domestic refinery
Straits
—.———Feb. 22
M.
$409,139,733
40,309,360
^
86
9,912,000
)
PRICES:
ton)
&
;
;
&
(per gross ton)
PRICES
Electrolytic
Lead
DUN
Feb. 24
(per lb.)
(per grocs
Scrap steel
METAL
—
INC
COMPOSITE
Finished
INDUSTRIAL)
68,425,052
456
,
number
Total
Feb. 26
AND
12,454,065
82,283,322
583,000
Retail
RESERVE
kwh.)
000
service
Construction
INSTITUTE:
BRADSTREET,
_j
Wholesale liabilities
'
-
-
AVERAGE
Total
31,928,000
i
EDISON
I
—
number
Manufacturing liabilities
78,683,000
26,103,000
Feb. 19
MINES):
(tons)
SALES
SYSTEM—1947-4!)
OF
(tons)
78,292,000
^Feb. 24
Federal
COAL
number
Commercial
$225,724,000
Feb. 24
'
13,239,446
17,840,717
BRADSTREET,
INC.—Month of January:
Manufacturing number
621,788
construction
27,806,248
195
&
Construction numbeif
construction
56,688,809
27,038,879
■
„
632,567
NEWS-RECORD:
U.
J
j
ENGINEERING
—
76,826,091
357,280,903
City.
cars)—Feb. 19
cars)
68,571,605
78,089,103
49,423,105
York
iFeb. 19
freight
43,519,600
73,566,605
'
$406,704,008
City
Outside New
BUSINESS FAILURES-r-DUN
freight received from connections
Private
York
States
46,215,000
Revenue
Total
United
69,187,000
at
New
19,032,000
76,158,000
69,966,639
41,272,680
62,516,345
{
175,497,000
20,170.000
.71,019,000
$12,487,613
68,040,491
42,800,847
69,917,725
_•
$21,503,579
93,469,598
18,521,497
Central
Mountain
Total
176,877,000
Ago
$14,350,014
IIIIIIII—I
,111—1111
„-_IIII_""~III
8,573,000
Feb. 18
Year
Month
&
——III"
-IIIIIIIIII
Central-
West
10,935,000
8,925,000
1
Atlantic
South
2,966,000
at
Revenue
CIVIL
-
(bbls.)
oil
OF
23,998,000
24,464,000
2,543,000
of that date:
Previous
CITIES—Month
East Central
7,156,000
(bbls.)
oil
fuel
ASSOCIATION
7,179,000
25,208,000
fuel oil output (bbls.)
Feb. 18
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Feb. 18
Kerosene (bbls.) .at
:
Feb. 18
fuel
7,384,000
Feb. 18
output
INC.—215
DUN
_
England
Middle
6,314,750
6,694,700
24,404,000
Residual
Distillate
6,719,350
Feb. 18
(bbls.)
oil
J?
VALUATION
SoUth. Atlantic
6,767,300
Feb. 18
PERMIT
BRADSTREET,
of January:
1,686,000
of
Feb. 18
to
runs
2,070,000
,
(bbls.
average
gallons each)
Crude
*2,191, GOO
.
oil
§2,172,000
are as
Month
Ago
85.8
New
INSTITUTE:
.
Crude
6
of quotations,
cases
Latest
Equivalent to—
Steel
hi
or,
either for the
are
Year
Ago
*90.8
that date,
on
production and other figures for the
cover
Dates shown in first column
\
Business Activity
51
as
Total
public debt and guaran¬
teed obligations
Deduct—other outstanding public debt obli¬
gross
gations not subject to debt limitation
Grand total outstanding
Balance face amount of obligations,
under above authority
—
__
issuable
—
—
The Commercial and Financial Chronicle
1064
52
.
Thursday, March 3, 1955
.
.
if INDICATES
Mow in
Securities
Oct.
Bldg.,
Gaetano
Office — 411 Childs
Canada.
Underwriter—De
purposes.
Manitoba,
Winnipeg,
Securities
Corp., New York.
Associated Food Stores,
Feb.
18
filed
share. Proceeds—For additional production,
development program and working capital.
Office —
Inc.,
Corp., New York).
Underwriter—None.
Atlantic
Feb. 17 (letter of notification) 299,700 shares of common
stock (par one cent). Price — $1 per share. Proceeds—
For mining expenses. Office—701 Newhouse Bldg., Salt
Electric Co.
(3/9)
$10,000,000 of first mortgage bonds due
March 1, 1985. Proceeds—To retire bank loans and for
new
construction.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); Union Securities Corp.; White,
Weld & Co.; Equitable Securities Corp.; Blair & Co. In¬
corporated; The First Boston Corp. and Drexel & Co.
(jointly); Lehman Brothers; Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane.
Bids—To be
received up to 11 a.m. (EST) on March 9 at Irving
Trust Co., New York.
Lake City, Utah.
York.
^Atlantic
if Aelus Wing Co., Inc.
Feb. 21
(letter of notification)
Feb.
150,000 shares of 7%
cumulative participating preferred stock (par $1) and
150,000 shares of common stock (par $1) to be^ offered
in units of five shares of each class of stock. Price—$10
per unit.
Proceeds—For capital improvements and new
development. Office — 505 Perry St., Trenton, N. J.
Underwriter—None.
Allied Uranium
•
Allison
Steel
Mines, Inc., Salt Lake City, Utah
Underwriter—H. J. Cooney & Co., New
11
filed
Manufacturing Co.
100,000 shares of
common
Amcrete Corp.,
and/or
and
•
Insurance
Co.
new
(3/8)
•
B; rights to expire March 24. Unsubscribed stock, up
15,000 shares, will be offered to employees. Price—To
be supplied by amendment. Proceeds—To provide com¬
pany and its wholly-owned subsidiaries, American Auto¬
Insurance
Co.
and
Associated
Corp., with additional capital funds.
Kidder, Peabody & Co., New York.
filed
11
shares
purchase
of
adjoining
assembly of homes. Office—10509
Hunter
of
com¬
18
Price—20 cents per share.
Proceeds—For uranium and oil activities.
Office—Judge
Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
common
curities, Inc., Seattle, Wash.
per
common
25
Corp.,
etc.
Underwriter—Vickers
Offering—Expected in about six
Bros.,
unit.
offered
weeks.
Under¬
Proceeds
—
and
67
shares
of
class
B
stock.
Price—$125
Proceeds—For equipment and
working capital.
Inc., San Francisco, Calif.
Angeles, Inc., Los Angeles, Calif.
and
future
life
insurance
salesmen,
build
qualify
Pro¬
up
as
Big Bend Uranium Co., Salt Lake City, Utah"~"
Aug. 6 (letter of notification) 7,000,000 shares of common
.
stock.
—For
Salt
Price—At par (three cents per share). Proceed*
expenses. Office—510 Newhouse
Building
mining
Lake
City, Utah. Underwriter
Phillips Building, same cit y.
—
Call-Smoot
University
Bikini Uranium
Oct. 15
Corp., Denver, Colo.
(letter of notification) 3,000,000 shares of
com¬
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and
development costs. Of¬
fice
705 First National Bank
mon
—
Bldg.,
Denver,
Colo.
Underwriter—I. J. Schenin Co., New York.
Philadelphia
San Francisco
Private Wires
Pittsburgh
to
all
offices
Chicago
Bishop Oil Co., San Francisco, Calif. (3/16)
21 filed 153,236 shares of common stock
(par $2)
to be offered for subscription
by stockholders of record
March 14, 1955, on the basis of two new shares for each
five shares held; rights to expire on March 30. Price—
Feb.
Cleveland
Reno, Nev.
Blue
Jay Uranium Corp., Elko, Nev.
Oct. 15 (letter of notification) 1,000,000 shares of com¬
mon stock. Price—25 cents per share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
California Tuna Fleet, Inc.
15 filed (amendment) $500,000 of 6% sinking fund
debentures due 1967 and 50,000 shares of common stock
Feb.
(par $1) to be offered in units of
a $1,000 debenture and
Price—Expected at $1,100 per unit,
Proceeds—For expansion and working capital. Office-
100 shares of stock.
San
Diego, Calif. Underwriter—Barrett Herrick & Co.,
Inc., New York. Offering—May be effected in March.
if Calunite Corp., New York
14 (letter of notification)
71,968 shares of common
stock (par $1.75), of which 63,968 shares are to be of¬
fered
in
payment of loans.
Price—For remaining 8,000
shares, $6.25 each. Proceeds—For working capital. Office
Plaza, New York 20, N. Y. Underwriter
—9 Rockefeller
—None.
-
ic Canadian
Fund, Inc., New York
Feb. 28 filed (by amendment) 300,000 shares of
capital
stock
(par $1).
Price—At market. Proceeds—For in¬
vestment.
•
Canadian
Petrofina, Ltd.
1,751,428 shares of non-cumulative par¬
ticipating preferred stock (par $10—Canadian) being
offered in exchange for shares of capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six pre¬
Dec.
20
ferred
filed
shares
for
each
17
Calvan
shares.
The
offer
is
contingent to acceptance by not less than 51% of the
outstanding Calvan stock and will expire on March 12,
unless
extended.
Underwriter—None.
Statement effec¬
tive Jan. 21.
Carnotite
Development Corp.
Oct. 26 (letter of notification) 16,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds
—For exploration and development expenses.
Office—
317 Main St., Grand
ern
Junction, Colo. Underwriter—West¬
Securities Corp., Salt Lake City, Utah.
ic Catalin Corp. of America
(3/15)
Feb. 23 filed 50,000 shares of $1.20 convertible
preferred
stock.
Price—At par ($20
share).
expansion.
Proceeds—For
per
working
capital
and
plant
Underwriter-
Fulton, Reid & Co., Cleveland, Ohio.
•
Chesapeake & Colorado Uranium Corp. (3/14)1
7 filed 750,000 shares of common stock
-(par five
cents). Price—$1 per share. Proceeds—For exploration
and development program. Office —
Washington, D. C.
Dec.
Feb.
10
Finance Corp. of Wisconsin
(letter of notification) 12,000 shares
cumulative
share).
preferred
Proceeds
—
stock.
To
Price
—
repurchase
At
par
existing
of
5.60%
($25 per
preferred
stock and for
working capital. Office—633 North Water
St., Milwaukee, Wis. Underwriters—Emch & Co., and
Co., same city.
Colorado Plateau Uranium Co.
Dec. 1 (letter of
notification) 1,900,000 shares of common
stock (par one cent). Price—15 cents
per share. Proceedi
—For mining activities. Office — 824
Equitable Bldg.,
Denver 2, Colo. Underwriter—John L.
Donahue, 430 16th
St., Denver, Colo.
Consol.
Edison Co. of New
York, Inc.
April 7, 1954, filed $50,000,000 first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general
mortgage bonds. Under¬
writer-—To be determined by competitive
bidding. Prob¬
able bidders;
Halsey, Stuart & Co. Inc.; Morgan, Stanley
& Co.; The First Boston Corp.
Offering—Originally set
for May 11, but has been postponed because
conditions.
No new date set.
of market
Consolidated Fenimore Iron Mines Ltd.
Jan.
Ave., Provo, Utah.
Boston
Reed Co.,
Co.
Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents
per share. Proceed*
—For mining operations. Address—Box
77, Provo, Utah
Underwriter—Weber Investment Co., 242 N.
New York.
Inc.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share,
Proceeds—For mining activities. Offices — 1003 Con¬
tinental Bank Bldg., Salt Lake City, Utah, and 618 Rood
Ave., Grand Junction, Colo. Underwriter — James E.
The Marshall
capital and surplus of company to
a full legal reserve company and
expand into other states. Underwriter—None. Richard
G. Johnson of Mesa,
Ariz., is President.'
capital stock.
—Coombs & Co., of Los
present
permit to
Oct. 28 (letter of
notification) 2,970,000 shares of class A
Price—At par (10 cents per share). Pro¬
ceeds—For exploration and
development expenses. Of¬
fice—995 Market St., San
Francisco, Calif. Underwriter
to
ceeds—To
Underwriters—Lehman
Glore, Forgan & Co., both of New York.
Anticline Uranium,
Uranium,
Canyon
stock
Civic
general public.
To reduce bank loans and for
expansion and working capital.
Proceeds — To retire bank
Oil, Ltd.,
Underwriter—Hooker & Fay,
Underwriter—Peter Morgan & Co., New York.
district managers and state
managers; and 455,208 double
option coupons with and attached to policies of whole
life insurance, to be offered to the
& Chemical Corp.
(3/8-9)
$7,000,000 of convertible subordinated de¬
bentures due March 1, 1970. Price—To be
supplied by
16 filed
Brothers and
Office—Los Angeles, Calif.
Brothers, New York.
Insurance Co., Mesa, Ariz.
11 filed 800,000 shares of class A
common
stock
(par $1) to be offered to present and future holders of
its life insurance
policies with stock purchase rights;
75,000 shares of class B common stock (par $1) to be
American Potash
amendment.
and
Best American Life
working capital,
Feb.
capital
Feb.
filed
New York.
working
Underwriter—None.
460,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development of mining
properties of subsidiary and
for
for
(letter of notification) 55,725 shares of class A
stock (par $1) and
112,225 shares of class B
stock (par $1) to be offered in units of 33
shares
of class A
Dover, Del.
Feb.
Blue
if Benson Aircraft Corp., Raleigh, N. C.
(par five cents).
Minerals
land;
selling stockholders.
Securities
Feb.
International
com¬
^Beneficial Standard Life Insurance Co. (3/22)
Feb. 28 filed 480,000 shares of common stock
(par $1).
Price—To be supplied
by amendment.
Proceeds—To
American Duchess Uranium & Oil Co.
Dec. 9 (letter of notification) 1,500,000 shares
American
(3/4-7)
(par $1),
general corporate purposes. Underwriter—Paine,
Webber, Jackson & Curtis, Boston and New York.
writer—Lehman
stock
stock
common
for the account of the
other
Homes, Inc., Houston, Tex.
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
Corp., Houston, Tex.
mon
Watertown, Mass.
are
and 50,000 shares for selling stockholders. Price—
To be supplied by amendment.
Proceeds—To discharge
mortgage indebtedness; to restore funds used in recent
Indemnity
—
Co., At¬
pany
Underwriter—
South Main St., Houston, Tex. Underwriters
Securities Corp., New York, and Continental
Inc.,
100,000 shares of
of which 50,000
American Beauty
For prefabrication and
Barry Controls
Feb.
Jan. 20
stock
&
Underwriter—Estabrook & Co., New York, who
is the selling stockholder.
share for each six shares held about March
Fire
be filed by amendment.
wholly-owned subsidiary.
San Francisco, Calif.
share).
to
mobile
Underwriter—Courts
ir Baldwin-Hill Co., Trenton, N. i.
Feb. 15 (letter of notification) 2,000 shares of common
stock. Price—At market (around $10.50 and $10.75
per
16
one
Price—$23.50 per share.
loans, for property additions
bank
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
timore, Md.
Un¬
filed 250,000 shares of capital stock (par $2) to
offered for subscription by stockholders at the rate
be
of
Automobile
held.
stock
repay
working capital.
common
Telebet units and Teleac systems and additions to work¬
prefabricated concrete wall panels and but-
American
Feb.
share for each share of
Automatic Remote Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par M
cents), of which 540,000 shares are to be offered tc
public and 80,000 shares to be issued to underwriter
Price—$3.75 per share. Proceeds—For manufacture of
(letter of notification) 7,500 shares of 6% par¬
ticipating preferred stock.
Price — At par ($10 per
share). Proceeds—For working capital. Business—Dis¬
made of steel reinforced dense concrete, etc.
derwriter—None.
new
lanta, Ga.
Briarcliff, N. Y.
resses
one
preferred
Proceeds—To
6
tributor of
the basis of
on
—
Dec.
-
Feb.
Steel
Co., Atlanta, Ga. (3/22)
Feb. 25 filed 200,000 shares of common stock (par $5)
to be offered first to stockholders of record Feb.
25, 1955,
(3/8)
stock (par $5)
and
50,000 shares of 75-cent cumulative convertible
preferred stock (par $10). Price — To be supplied by
amendment.
Proceeds—To purchase certain assets of
Allison Steel Mfg. Co., machinery, tools and equipment,
and for working capital and other corporate purposes.
Office
Phoenix, Ariz. Underwriter
Lee Higginson
Corp., Chicago, 111.
Feb.
City
filed
4
ISSUE
loan and to advance funds to Canadian Bishop
mon
400,000
Securities
Aetna
REVISED
Nov. 29
shares of capital stock (par $1).
Price—$5 per share. Proceeds — For general corporate
purposes, including carrying of larger inventories and
for working capital.
Office — Jamaica, L. I., N. Y.
Underwriter—To be named by amendment
(probably
per
PREVIOUS
ITEMS
•
To
Ltd.
Mines
—For general corporate
if Aeco Corp., Reno, Nev.
15 (letter of notification) 167,500 shares of capital
stock (par 10 cents) to be offered for subscription by
stockholders.
Price—To range from 45 cents to 82V2
Cheney Bldg., Reno, Nev.
Uranium
28
(Regulation "D") 1,500,000 shares of common
stock (no par value). Price—20 cents per share. Proceeds
Feb.
cents
Registration
Arctic
if Admiral Homes, Inc., West Newton, Pa.
18 (letter of notification) $114,900 of 6% class A
20-year convertible debentures to be offered to stock¬
holders. Price—At par (in denominations of $100 each).
Proceeds—For building and financing model homes and
for working capital.
Office—149 Water St., West NewIon, Pa. Underwriter—None.
Feb.
ADDITIONS
SINCE
24
filed
204,586 shares of common stock (par $7),
subscription by common stockholders
7, 1955 at the rate of one new share for
each five shares held. Price—$2.20
per share.
Proceeds
—From sale of this stock, plus
$440,000 to be available
from sale of 200,000 shares to Alator
Corp. Ltd. and
Yam Securities Ltd., and $175,000
treasury funds, to be
used to pay for geological
surveys and metallurgical re¬
search, for drilling expenses and other general corporate
to
be
offered for
of record Feb.
purposes.
Office—Toronto, Canada. Underwriter—None.
Consolidated
Sudbury
Toronto, Canada
Basin
Mines,
Ltd.,
Jan. 31 filed 3,000,000 shares of common stock
Price—To be supplied by amendment.
(no par).
Proceeds—For
Underwriter
exploration and development of properties.
—Stock
to
be
sold
through underwriters
States.
on
or
Toronto
Stock
selected
dealers
Exchange
in
or
United
Volume 181
Number 5408
.
The Commercial and Financial Chronicle
..
Contact Uranium, Mines,
Inc., N. Y. *
7
(letter of notification) 500,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—100 West 42nd
-—To finance
Desert Queen
Uranium Co., Salt Lake City, Utah
notification) 259,500 shares of common
(par two cents). Price—$1 per share. Proceeds—
for mining operations. Office—506 Judge Building, Salt
Lake City, Utah.
Underwriter — Selected Securities
Ltd., Los Vegas, Nev.
share for each five shares held;
rights to expire on April
$18.75 per share. Proceeds — For working
capital.
Office — 1 Green Hills Place, Cincinnati, O.
Underwriter—None.
filed
Price—To
150,000 shares of
be
expansion
supplied
by
(par $1).
Proceeds—For
amendment.
7
and
(Republic of)
$2,500,000 of Veterans, Courts and Public
bonds
4%
due
1983.
Price—To
be
supplied by
Feb.
struction
ment.
Dean & Co., San
Antonio, Texas
Feb. 10 (letter of
notification) $150,000 of 5% sinking
fund debentures, second
series, due Feb. 1, 1965. Price
—At
(in denominations of $1,000 each).
par
Proceeds
Inc., Chicago, III.
200,000 shares of common stock (par $1).
^ Dow Theory Investment Fund,
amendment.
Proceeds —To
Romenpower Electra Con¬
Co., which received the bonds in payment
lor work preformed for the
Republic or one of more
of its agencies. Underwriters—To
be named by amend¬
($1
per
.
28
filed
Proceeds—For investment.
Price—At market.
East Tennessee Water Corp.
Dec. 20 (letter of notification) $160,000 of first mortgage
6%
NEW
Barry
Controls,
(Paine,
4
March
Webber,
Jackson
&
Curtis)
100,000
Texas Hydro Electric Corp
general
H
Eula Belle
Uranium, Inc.
(letter of notification) 5,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development expenses'.
'Office—506 First Security Bank Bldg., Salt Lake Cityfl
Utah.
Underwriter—Utah Securities Co., same city.
18
mon
stock
Financial Credit
Corp., New York
29, 1954 filed 250,000 shares of 7% cumulative sink¬
Price—At par ($2 per share).
Preceeds
For working caiptal. Underwriter — E. J.
Jan.
ing fund preferred stock.
—
Fountain
•
Co.)
(Wednesday)
Electronized
C.
March 8
Allison Steel
Oklahoma
Corp
Common
Legg & Co.)
(Lee
Higginson
(Offering
American
Corp.)
Corp.)
Peabody
Co
Beneficial
and McDonald
&
and
Co.
Debentures
Co.)
Co.,
Inc.)
Washington Gas Light
< Offering
125,000
and
Johnston,
3.30
—Common
p.m.
EST)
shares
345,760
Common
Co
Norman
stockholders—underwritten
to
Jackson
Curtis)
&
by Paine,
shares
124,667
Webber,
(Co., Salt Lake City, Utah
(letter of notification) 11,000,000 shares of capital
(par one cent). Price—Two cents per share. Pro¬
ceeds—For exploration and development of oil and uranium properties.
Office — 414 Judge Bldg., Salt Lake
City, Utah. Underwriter—Utah Uranium Brokers, same
city.
The
Oil
Kin-Ark
First
Boston
shares
126,349
(Thursday)
Common
Co._-_--_—_____:
(Van
Alstyne,
Noel
$1,375,000
Co.)
&
General
Homes, Inc.
300,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
Dec.
Brothers &
March 24
Co.)
&
Gem Uranium & Oil
(Wednesday)
Co
shs.
Common
by
15 filed
General
March
9
March
(Wednesday)
Atlantic City Electric Co
(Bids
Central
of
11
(Bids
General
EST)
a.m.
Tire
&
EST)
noon
Rubber
Ontario
(Blyth & Co.,
Inc.
and
March
Justheim
(Hunter
Arkansas
.Debentures
&
Sons)
Power
&
Transcontinental
11
(Wednesday)
(White,
Weld
Preferred
$9,350,000
EST)
a.m.
(Friday)
1
Co.
&
.•
_
April
Stone
and
&
Webster
14
(The
(Monday)
First
Boston
'
.
•
'
.
Corp.
..
-
'
Webster Securities
Stone &
and
Common
...
(Peter
Morgan
Co.)
&
(Barrett Herrick & Co.,
Pacific
Finance
(Blyth &
Inc.
Co.,
&
(May
be
Union
Weeks)
$14,000,000
March
Corp.
15
&
Co.)
Kansas Gas & Electric Co
(Bids
11
11
a.m.
a.m.
&
First
and
Southern
Union
(Willis
Sun
E.
Week*:
EST)
California
Edison
Co.)
$9,640,000
Co.)
&
Inc.)
(Coombs
&
McManus &
Co.)
Co. and A.
Common
P.
Kibbe &
Co.
$3,000,000
New
—
To
reduce bank
loans and for
Underwriter—Kidder, Peabody & Co.,
York.
Uranium Corp., Salt Lake City, Utah
(letter of notification) 1,200,000 shares of com¬
stock.
Price—At par (25 cents per share).
Pro¬
a.m.
EST)
ceeds—For
development and exploration expenses. Of¬
Building, Salt Lake City, Utah. Under¬
writer—P. G. Christopulos & Co., same city.
to
be
$12,000,000
Alabama
Po-,,*~v*
(Bids
EST)
7
(Bids
to
be
H.)
Co., Spring Grove, Pa.
common stock (par $10)
March
1, 1955 on the basis of one new share
held; rights to expire on March
—
$37
Together with
Under¬
Boston Corp., New York.
per
share.
Proceeds
—
funds, to be used for expansion program.
Globe
18
First
Metallurgical Corp.
147,500 shares of common stock (par $5),
30,000 shares are to be offered to a group
filed
which
Co, the
117,500 shares are to be offered to public.
Price
$10 per share. Proceeds — For capital improvements and working capital.
Office—Beverly, Ohio. Un¬
derwriter—McDonald & Co., Cleveland, Ohio. Offering—
parent, and
—
(Tuesday)
invited)
(P.
125,000 shares of
composed largely of stockholders of Globe Iron
$15,000,000
Virginia Electric & Power Co
Price
16.
Jan.
$30,000,000
Bonds
a.m.
filed
writer—The
Oo
11
9
other
(Tuesday)
invited)
Glatfelter
Feb.
Bonds
June
$6,800,000
Co
Co., Akron, Ohio (3/9)
of cumulative convertible
Price—To be supplied by
for each 1.76 shares then
May 31 ( Tuesday)
shares
Proceeds
working capital.
of
$1,500,000
1,211,002
filed
of record
Co.;
Common
16
being offered for subscription by common stockholders
(Tuesday)
Co
(Bids
Staats
share for each
100,000 shares
preference stock (par $100).
•
Preferred & Common
&
r.__r.___Preferred & Common
White Canyon Mining
(Joseph
Co.,
11
May 17
Ohio
Preferred
R.
new
fice—404 Boston
Bonds
(Bids
Preferred
$6,000,000
Ltd
Burnside &
Hotel, Inc
shares
$10,000,000
EST)
William
Oils,
Space
May 10
Bonds
Southern Nevada Power Co
(Hornblower
Lane,
384,861
Georgia Pow"
$1,000,000
;
Kansas Gas & Electric Co
(Bids
Corp.)
(Monday)
2
May
Preferred
Reid
(Fulton,
Securities
(Tuesday)
.
General Tire & Rubber
mon
Common
Augusta Newspapers, Inc
(Johnson,
Catalin
(Friday)
April 15
..-Debentures
Hornblower
and
one
(par $5)
stockholders
General
Westpan Hydrocarbon Co._
Inc. and Franklin, Meyer & Barnett)
$3,150,000
Corp
8 at the rate of
common
Oct. 27
$750,000 v
Common
•
1G5.000 shares
Chesapeake & Colorado Uranium Corp.__Common
Holly Uranium Corp.__.
Feb.
amendment.
(Thursday)
14
Corp.)
.
Preferred
Feb.
Savannah Electric & Power Co
March
Detroit, Mich.
held; rights to expire on March 7. Price—$75
per share.
Proceeeds — For capital expenditures and
working capital Subscription Agents—J. P. Morgan &
Co. Incorporated, New York, N. Y.; National Bank of
Detroit, Detroit, Mich.; Continental Illinois National
Bank & Trust Co., Chicago, 111.; and Bank of America
N. T. & S. A., San Francisco and Los Angeles, Calif.
Underwriter—Morgan Stanley & Co., New York.
Securities
$15,000,000
Corp.)
units
Bonds
$18,000,000
EST)
Light Co.__
(
10,000
Corp.,
being offered for subscription by
of record
Gas Pipe Line Corp
$265,000
Debentures and Stock
Co.)
$10,600,000
Light Co
a.m.
(Bids
Common
&
Co.)
11
$14,000,000
Co
Corp.)
&
&
April
Securities
Barney
Power
(Bids
(Thursday)
Petroleum Reserves, Inc.
(Smith,
Arkansas
$10,000,000
Paper Co
10
Petroleum
March 30
Preference
Alex. Brown
Peabody
Motors
Jan. 20 filed 4,380,683 shares of common stock
*20 shares
Cfls.
$930,000
Co
(Kidder, Peabody & Co.)
Minnesota &
Trust
(Tuesday)
Preferred
(Kidder,
$10,000,000
Equip.
29
Collins Radio Co
Bonds
Georgia Ry..__
of the promoters.
Dec. 9
464,325 shares
•
(Bids
$300,000
Lemon
Common
23
Brewing
(Offering
Co,
stockholders—underwritten
to
Corp.
Baruch
one
Address—Box 306,
Underwriter—Norman D. Patterson, Jr,
Anthony, Tex.
El Paso, Tex.
shares
480,000
Blyth & Co., Inc.)
March
Harvard
Van
and
Brothers)
O'Brien,
struction of plant and refrigeration.
Co.—Common
$7,000,000
Productions,
Inc.
$4,700,000
Insurance
C.
stock
Common
&
Life
Price—At par
Frio Frozen Foods, Inc., Anthony, Texas
Jan. 25 (letter of notification) 20,000 shares of common
stock (no par). Price—$5 per share. Proceeds—For con¬
(Tuesday)
Co.)
stock.
per
Underwriter—John
(Offering to stockholders—underwritten by W. E. Hutton & Co.
Kidder,
Inc.
(Milton D. Blauner
&
Standard
(Lehman
Common
Television
Lynch,
shares
National Gypsum Co
Common
Chemical Corp
Co.
&
22
Merrill
by
331,643
Beane)
&
Co., Vancouver, Wash.
common
share). Proceeds — For down payment on.
purchase price of mill facilities and for other expenses.
($4,500
Common
Co
Common
Shares
100,000
Harris-Seybold Co.
North American
Fenner
(Courts
Common
(Lehman Brothers and Glore, Forgan & Co.)
(Kidder,
Co., Delta Bldg., New Orleans, La.
Feb. 21 filed 397 shares of
(Friday)
Electric
&
$500,000
Insurance
18
March
stockholders—underwritten by
Peabody & Co.) 250,000 shares
&
Investment
100,000 shares
& Co.)
Atlantic Steel Co
Preferred
to
Potash
Common
Co
stockholders—underwritten
to
(Tuesday)
Higginson
Automobile
Gas
Pierce,
Allison Steel Manufacturing Co
American
(Offering
$198,000
Manufacturing Co
(Lee
Corp.
361,922 shares
Fort Vancouver Plywood
(Monday)
Chemicals
(John
filed
^ Flo-Mix Fertilizers Corp., Houma, La.
14 filed 585,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds;—To buy equip¬
ment and for working capital.
Underwriter — Tschirn
$114,400
7
4
York, and San Francisco.
(Thursday)
Insurance
March
March
Co., Inc., New York.
Feb.
17
R. W. Pressprich
and
&
First Bank Stock
of capital stock (par $10)
being offered for subscription by stockholders of record
24, 1955 at the rate of one new share for each eight
shares held; rights to expire March 14.
Price—$31.50
per share. Proceeds—For investments in stocks of bank¬
ing affiliates.
Underwriter—Blyth & Co., Inc, New
(Offering to stockholders—underwritten by The First Boston
Corp.
Office—846 Lefferts Ave.,
Underwriter—John C. Legg & Co.,
purposes.
3, N. Y.
Oct.
Common
Fire
Hanover
Common
(Offering to stockholders—underwritten by Creston H Funk
&
16
March
Texas Power Corp
(3/7)
New York.
(Offering to stockholders—to be underwritten) 153,236 shares
Funk
corporate
Brooklyn
Common
(Offering to stockholders—underwritten by Creston
& Co.) $131,600
Corp.
(letter of notification) 24,000 shares of common
(par $3). Price—$8.25 per share. Proceeds—For
Feb.
Bishop Oil Co
shares
Chemicals
17
stock
CALENDAR
..Common
Diego, Calif.
shares of capital stock (par $1).
Proceeds—For investment.
;
share.
per
Electronized
bonds dated Dec. 1,
(Friday)
Inc
Investment Corp., San
Trust
14 filed 2,000,000
Price—$5
1954. Price — At par (in de¬
nominations of $1,000 each). Proceeds—For purchase of
real estate, capital improvements and contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn. Underwriter
—D. T. McKee Investment Co., Box 904, Bristol, Va.
ISSUE
Price—At
share). Proceeds—For machinery and build¬
Electronics
Dec.
Feb.
March
Co. of Ireland
300,000 shares of capital stock.
ing and working capital. Office — 407 Liberty
Bldg., Philadelphia, Pa. Underwriter—None.
18
Moab, Utah
*Jan. 20 (letter of notification) 3,500,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining expenses.
Office—M. I. C. Bldg.,
Moab, Utah. Underwriter—Security Uranium Service,
Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.
filed
Works
filed
par
Diamond Uranium Corp.,
&
Cuba
Jan.
6
Feb.
working capital.
Underwriter — Baker,
Co., Detroit, Mich. Offering—Expected to¬
day (March 3).
Simonds
Electronics
Jan.
Co., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of com¬
mon stock Price—At par (15 cents per share). Proceeds
—For exploration and development expenses.
Office—
524 Atlas Bldg., Salt Lake City, Utah.
UnderwriterVan Blerkom & Co., same city.
stock
common
address.
Desert Uranium
Oct.
—
Crampton Manufacturing Co.
8
'
stock
Continental Electric Equipment Co.
Jan. 28 (letter of notification) 8,645 sharBs of common
stock ("no par) to be offered for
subscripiion by stock¬
holders of record March 1, 1955 oni the basis of one new
Feb.
(letter of notification) 25,000 shares of common
(no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Tex.
Underwriter—D. G. Carter Investment Co., same
stock
Jan. 26 (letter of
York.
Price
Jan. 20
biles, etc.
St., New York. Underwriter—Justin Steppler, Inc., New
53
East Texas Loan & Investment Co.
new business, including loans on automo¬
Office—800 Broadway, San Antonio, Texas.
Underwriter—The First Trust Co. of Lincoln, Neb.
Dec.
15.
1065
Temporarily postponed.
—
$25,000,000
Bonds
Continued
on
page
54
,
The Commercial and Financial Chronicle
1066
54
Continued from page 53
^
Insurance Co.
Feb. 16 (letter of notification) 50,000 shares of capital
stock (par $1).
Price — $6 per share. Office — 119 W,
Rudisill Blvd., Fort Wayne, Ind.
Underwriter—North¬
western Investment, Inc., 506 Gettle Bldg., same city.
Northern Life
it Great
* Grolier Society, Inc.,
New York
notification) 18,000 shares of common
(par $1). Of this total, 13,500 shares are for ac¬
count of company and 4,500 shares for selling stock¬
holders.
Price—$16.50 per share. Proceeds—For work¬
ing capital. Office — 2 West 45th St., New York, N. Y.
Underwriters — Dominick
& Dominick, New York;
George D. B. Bonbright & Co., Rochester, N. Y.; Bali
Burge & Kraus, Cleveland, Ohio; and Foster & Marshall,
Feb.
18
(letter of
stock
if Investors Selective Fund, Inc.,
Minneapolis, Minn.
Feb. 28 filed (by amendment) 1,000,000 shares of capital
stock (par $1).
Price—At market. Proceeds—For in¬
—-For mining expenses.
vestment.
ties
Israel
Feb.
28
Pecan
filed
Jarmon Properties & Oil Development Corp.
17 (letter of notification) 30,000 shares of captal
'
share). Proceeds—For fur¬
ther exploration and development. Addres—P. O. Box
stock (par
$4.50 divi¬
preferred stock, 60,000 shares of $4.40 dividend
preferred stock, 1949 series, and 50,000,shares of $4.44
dividend preferred stock at the prevailing redemption
prices of $105, $105, and $105.75, respectively. Under¬
competitive bidding. Prob¬
able bidders: Stone & Webster Securities Corp.; Lehman
Brothers and Equitable Securities Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New York, N. Y., but of¬
fering has been postponed.
/
writer—To be determined by
Gulf States Utilities Co.
May 14, 1954 filed $24,000,00 first mortgage bonds due
June 1, 1984. Proceeds—To redeem $10,000,000 of 3%%
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn
& Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at
New York, N. Y., but
The Hanover Bank, 70 Broadway,
offering has been postponed.,
it Hanover Fire Insurance
Co.
(3/17)
Feb. 24 filed 100,000 shares of capital stock (par
offered for subscription by stockholders of
be
March
16
at
the
rate
of
new
one
share
for
$10) to
record
each four
shares held; rights to expire
on April 4.
Price—To be
Proceeds—To be added to the
general funds of the company to enable it to expand its
business, particularly in the writing of casualty and mul¬
tiple-line policies. Underwriters—The First Boston Corp.
and R. W. Pressprich & Co., both of New York.
supplied by amendment.
Harris-Seybold Co., Cleveland, Ohio (3/8)
16 filed 125,000 shares of common stock
(par $1).
Feb.
Price
—
To
be
supplied by amendment.
Proceeds—To
finance expansion of business, and possible acquisitions.
Underwriters—McDonald & Co., Cleveland, O., and Kid¬
Underwriter—John A. Aicholtz
Associates, 505 Macon St., Fort Worth, Tex., and an¬
Manufacturing Co.
filed $20,000,000 of sinking fund debentures
be supplied by amendment.
Pro¬
ceeds—For expansion and working capital*
Underwrit¬
ers—Hcdlgarten & Co.; R. W. Pressprich & Co.; and
Adamex Securities Corp., all of New York.
28
Dec.
9
riion
Co.
:
r
■
★ Historic Georgetown Inn, Washington, D. C.
17 (letter of notification) $30,000 of 5% five
year
promissory notes. Price—At par (in denominations of
$500 each). Proceeds — For restoration and remodeling
1985.
Gas
filed
Electric Co.
&
$10,000,000
of
mortgage
bonds
due
tion program.
petitive
Co. Inc.;
of
property.
Office — 1700
Underwriter—None.
I
St., N.
W., Washington,
if Hobby & Brown Electronic Corp.
Feb. 24 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1.25 per share. Proceeds
—To increase
inventory and. for working capital. Office
—55 Front St., Rockville
Centre, L. I., N. Y. Underwriter
—W. Haity Young Co., Garden
City, L. I., N. Y.
•
Holly Uranium Corp., New York (3/14-18)
Feb. 10 filed 900,000 shares of common stock
(par $1).
Price—$3.50 per share. Proceeds—To exercise certain
*
options on properties in Utah and New Mexico. Under¬
writer—Barrett Herrick & Co., Inc. and
Frariklin, Meyer
& Barnett, both of New York. ■
Inland Western Loan & Finance
Corp.
Feb. 17 filed 2,500,000 shares of class A
non-voting com¬
mon stock
(par $1). Price—$1.25 per share. Proceeds—
To
be used
as
and to findnce
'<
operating capital for its two subsidiaries,
establishment and operation of additional
loan and finance offices.
Office—Phoenix, Ariz. Underwriter—None.
★ Institutional Income Fund, Inc., New York
Feb. 23 filed (by
amendment) 800,000 additional shares
of common stock
(par one cent).
ceeds—For investment.
Price—At market. Pro¬
shares of common
Corp., at the
(par $1) of New York Shipbuilding
rate of
Proceeds—To repay bank loans and for construc¬
Underwriter—To be determined by com¬
bidding. Probable bidders: Halsey,-Stuart &
common
share for each share of common stock of N.
one
Y.
Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel
Corp., not owned by Merritt, at the rate of one share
for each 2.1 shares of common stock of Newport; 26,114
shares to holders of the 17,409 outstanding shares of
common
stock (par $10) of Marion Power Shovel Co.,
not owned
by Merritt, at the rate of 1 Vz shares for
each share of common stock of Marion; and 940 shares
(3/15)
first
of class B
the 1,290,252 outstanding
to holders of
—
11
182,025 outstanding shares
(par $1) of Devoe, at the rate of 1% shares for
common stock of Devoe; 1,290,252 shares
each of class B
Proceeds
For oil and mining expenses.
Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
writer—Hunter Securities Corp., New York.Kansas
the
stock
(letter of notification) 21650,000 shares of com(par five cents). Price—10 cents per share.
to
holders
the
of
1,410 outstanding shares of class B
"
cdmmon stock {without par value) of the Osgood Co.,
Glore, Forgan & Co. and Goldman Sachs&
hot owned by Merritt or Marion, at therate of one share
Co. (jointly); Blyth & Co., Inc. and The First jBostan..
> for eaicfi I %~sKares of class B common stock of Osgood.
Corp. (jointly); Union Securities Corp. and Stbhe.&!
"Offer will expire on March 14. Dealer-Manager—A. C.
Webster Securities-Corp. (jointly); Lehman Brothers and
Allyn & Co., Inc. for Devoe & Raynolds exchange.
Bear, Stearns & Co. (jointly); Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Beane
(jointly);
Mesa Petroleum Co., Inc., WcSfta; Kais.
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly).
Feb. 9 (letter of notification) 75,000 shares of common
Bids—Expected to be received up to 11 a.m. (EST) on
stock (no par). Price—$4 per share. Proceeds—To com¬
March 15, at Two Rector St., N'ew York 6, N. Y.
plete wells already drilled on properties owned by
Kansas Gas & Electric Co.
(3/15)
company; and to drill additional weus.
Office—oU3 In¬
Feb. 11 filed 60,000 shares of cumulative preferred stock
surance
Building, Wichita, Kans.
Underwriter—Albert
(par $100).
Proceeds—To repay bank loans and for
C. Schenkosky, same city.
construction program.
Underwriter—To be determined
Minnesota & Ontario Paper Co. (3/9)
by
competitive
bidding. Probable
bidders:
Lehman
Feb. 21 filed $14,000,000 of sinking fund debentures due
Brothers; Blyth & Co. Inc.; Union Securities Corp.;
1975. Price—To be filed by amendment.
Proceeds—To
White, Weld & Co. and Shields & Co. (jointly); Kidder,
prepay 4% promissory notes due Oct. 1, 1966, and for
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
general corporate purposes. Underwriters—Blyth & Co.,
Beane
(jointly). To be received up to 11 a.m. (EST)
Inc., New York and San Francisco; and Alex. Brown &
on
March 15, at Two Rector St., New York 6, N. Y.
Sons, Baltimore, Md.
if Kin-Ark Oil Co., El Dorado, Ark. (3/24-31)
Missouri Uranium Corp., Kansas City, Mo.
Feb. 24 filed 500,000 shares of common stock
(par
cents).
Price
—
$2.75
per
share.
Proceeds
—
To
10
repay
$279,000 mortgage indebtedness and $45,500 outstanding
notes; to pay $70,000 outstanding accounts payable, and
for drilling of 14 additional wells and
working capital.
Underwriter—Van Alstyne, Noel & Co., New York.
150,000 shares of preferred stock (par $5)
150,000 shares of common stock (no par) to be of¬
Price
Jan. 24 filed
and
fered in units of one share of each class of stock.
per unit.
Proceeds—For exploration and develop¬
ment, etc. Underwriter—Dale E. Klepinger & Associates,
203 W. Dartmouth, Kansas City, Mo.
—$5
if Kirk's, Ltd.
Feb. 28
Price
stock.
—
Finance Service, Inc., Jackson, Mich.
$600,000 of 6% subordinated debentures,
it Model
Feb.
filed
28
with detachable common stock purchase warrants for a
18,000 shares of $1 par value common stock (a
30 shares for each $1,000 debenture) to be
offered in units of a $500 debenture, plus a warrant for
total of
warrant for
if Lock Thread Corp., Detroit, Mich.
Feb. 15
(letter of notification) 114,374 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
working capital, etc. Office—2832 E. Grand Blvd.,
Detroit 11, Mich. Underwriter—None.
purchase of 15 shares of stock at $2 per share. Price—
$500 per unit. Proceeds—For payment of certain notes.
Underwriter—Paul C. Kimball & Co., Chicago, 111.
Lucky Lake Uranium, Inc., Salt Lake City, Utah
Feb. 9 (letter of notification) 8,000,000 shares of
capital
stock. Price—At par (two cents per share). Proceeds—
For mining expenses. Office—201 Boston
Building, Salt
Lake City, Utah. Underwriter—Kastler Brokerage Co.,
same city.
Oct.
Lucky Strike Uranium Corp.
Jan. 4 (letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining operations.
Office—38 South Main
St., Salt Lake City, Utah. Underwriter—Seaboard Se¬
curities Corp., Washington, D. C.
Jan.
Marble Canyon Uranium,
Feb. 4 (letter of notification)
Jan. 28
stock
For
Feb.
D. C.
of
stock
Feb.
Raynolds Co., Inc. at the rate of 1% shares for each
242,700 shares to holders
share of class A stock of Devoe;
stock
Under writer—None.
March 23.
:
(3/10)
•
Brewing Co., Lowell, Mass. (3/23)
Feb. 1 filed 345,760 shares of common stock (par
$1),
which the Attorney General, as successor to the Alien
Property Custodian, is the owner and proposes to offer
at competitive bidding. If any such bid is
accepted, and
if the successful bidder plans to distribute the
shares,
the
company
will file post-effective amendments to
supply the requisite additional information.
There are
625,000 shares outstanding.
Bids—To be received by
Office of Alien Property, Room 664, 101 Indiana
Ave.,
N. W., Washington 25, D. C., up lo 3:30
p.m.'(EST) on
Tennessee; 755,105 shares to holders of the 453,063 out¬
standing shares of class A stock (par $2) of Devoe &
1975;-Price—To
(letter of notification) 5,000 shares of common
At par ($10 per share). Proceeds — For
working capital. Office—554 Broadway, Bayonne, N. J.,
Harvard
rate
if Joy
Petroleum
540,439 outstanding shares of common stock (par
Tennessee Products & Chemical Corp., at the
of V/i shares for each share of common stock of
of
$5)
Option Plan.
Justheim
stock/(par
being offered in exchange for outstanding stock
York Shipbuilding Corp., Devoe & Raynolds
of the
to
•
New
Co., Inc., Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders
Feb. 28
der, Peabody & Co., New-York.
"
$12.50)
of
1109, Wichita Falls, Tex.
due
Merritt-Chapman & Scott Corp.
21 filed 3,ui8,567 snares of common
Dec.
stock. Price—At par ($10 per
Feb.
/
dend
1
•
Jan.
if Jones & Laughlin Steel Corp.
filed 300,000 shares of common stock (par $10)
be offered for subscription by Cert5dn offieers and
other key employees of company urtder-company's Stock
May 14, 1954 filed 160,800 shares of preferred
$100). Proceds—To redeem 50,000 shares of
•
$1,000 each.)
Proceeds—For working capital. Olfice—
1115 East Broadway, Tucson, Ariz.
Underwriter—None.
other.
Gulf States Utilities Co.
'
Feb. 21
—Natanya, Israel, and New York, N. Y.
if Gulf Cities Gas Corp., St. Petersburg, Fia.
Feb. 15 (letter of notification) 31,500 shares of class A
stock (par $1). Price—$7.75 per share.
Proceeds — To
repay
notes and other obligations and for working
capital. Underwriter—Eisele & King, Libaire, Stout &
Co., New York.
Underwriter—Standard Securi¬
Corp., Spokane, Wash.
it Merchants Loan Co., Tucson, Ariz.
(letter of notification) $250,000 of 8% convert¬
ible debentures.
Price—At par (in denominations of
shares of
Seattle, Wash.
<
if Mascot Mines, Inc., Kellogg, Ida.
(letter of notification) 200,000 shares of common
35 cents). Price—75 cents per share. Proceeds
stock (par
ordinary common stock
(par one Israeli pound). Price—$10 per share. Proceeds
—For capital expenditures. Underwriter—None. Offices
&
Thursday, March 3, 1955
Feb. 17
Ltd.
Plantations,
24,900
•
•.
Inc.
20,900,000 shares of com¬
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining operations. Office—587 — 11th
Ave.,
Salt Lake City, Utah.
Underwriter—Potter Investment
Co., same city.
mon
Monte Cristo
15
be
to
Midland
filed
offered
Corp., Buffalo, N. Y.
64,000 shares of
in
exchange for
all
of
the
(par
$5)
outstanding
stock of Bank of Gowanda at the rate of eight shares of
Marine Midland common for each Bank of Gowanda
share held of record March 4, 1955.
•
Underwriter—None.
Maryland Casualty Co., Baltimore, Md.
Feb.
3
filed -296,050
shares of
common
being offered for subscription by
of record-Feb. 24
six
shares
on
the basis of
stock
common
one new
(par $1)
stockholders
share for each
held; rights to expire March 10.
Underwriter—James
E.
Reed
Co.,
139
Virginia
North
St., Reno, Nev.
Montezuma
Uranium, Inc., Denver, Colo.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For exploration and development operations.
5
Office—Ernest
and
Cranmer
Bldg., Denver, Colo.
city.
Un¬
derwriter—Investment Service Co., same
Mother Lode Uranium Co.
mon
10,000,000 shares of com¬
(two cents per share). Pro¬
operations. Office—470 South 13th
(letter of notification)
stock.
ceeds—For
Price—At par
mining
Underwriter—rM. C. Leon¬
Tribune Bldg., Salt Lake City,
East, Salt Lake City, Utah.
ard and Associates, 602
Utah.
National
Aviation Corp.,
New York
(3/10)
111,618 shares of capital stock (par $5) to
be offered for subscription by stockholders at rate of
one new
share for each four .shares held as of record
March
10; rights to expire on March 25. Price—To be
supplied by amendment.
Proceeds —For investment.
Underwriter—None.
it National Gypsum Co. (3/22)
Feb. 28 filed 464,325 shares of common stock (par -$l)
to be offered for subscription by common stockholders
of record
March
21, 1955 at the rate of
Price—$40
per share.
Proceeds—To retire 213,748 shares of $2.10
preferred stock at $52.50 per share; and for working
capital. Underwriter—Merrill Lynch, Pierce, Fenner &
for-each
Beane.
bolE of New York.
.
3,000,000 shares of com¬
stock
Feb* 18 filed
stock
common
Uranium Corp., Moab, Utah
(letter of notification)
(par one cent). Price—10 cents per share.
Proceeds—For exploration and development expenses.
mon
•
Marine
Feb.
5
six
one
new,
share
shares
held; rights to expire on April 4,
1955. Price—To be supplied by amendment. Proceeds—
For capital expenditures and 'working. capital.
Under¬
writers—W:
E.~ Hutton' &" Co.
and
Blyth
&
Co.,' Inc.,
Volume 181
Number 5408
.
.
The Commercial and Financial
Chronicle
.
1067
it New England Fund, Boston, Mass.
(by amendment) 300,000 shares of benefi¬
each
cial interest in the Fund.
Price—At market.
•
New
scribed
Proceeds—
For investment.
will
-
England Telephone & Telegraph Co.
Feb. 4 filed 511,205 shares of
capital stock bemg offered
subscription by stockholders of record March 1, 1955
at the rate of one new share for each five
shares held;
rights to expire on March 31. Price—At par ($100 per
share). Proceeds—To repay advances from American
Telephone & Telegraph Co., the parent, which owns
1,769,035 shares
(69.21%)
of
the
outstanding stock.
Underwriter—None.
Pacific
Coal
&
Oils,
shares
30
held.
be-
Southeastern
days following date
disposed
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
corporate purposes. Underwriter—James Anthony
Securities Corp., New York.
eral
Nov.
18
Ltd., Toronto, Canada
(Regulation "D")
Price—$1 per share.
stock.
(no par), of which 120,000 shares are to be offered in
Canada and 155,000 shares in the United States. Price—
in
two
three
or
weeks.
Nevada
Power Co. (3/15)
75,000 shares of cumulative convertible
preferred stock (par $20). Price—To be filed by amend-*
21
ment.
242,850 shares of
Proceeds — For
general corporate purposes. Underwriter — James An¬
thony Securities Co., New York. Offering -srr Expected
Dec. 28 (regulation "D")
275,000 shares of common stock
Southern
Feb.
Mining Corp. of Canada, Ltd.
amendment
common
Co.
of 3% Southeastern shares for each Hamilton share.
This
offer shall terminate when offer shall have been
accept¬
ed by Hamilton stockholders
owning not in excess of
8,000 shares of Hamilton stock. Office—70 Pine St., New
York 5, N. Y. Underwriter—None.
Dec. 30 (regulation "D")
300,000 shares of common stock
Rare Earth
Service
(letter of notification) 28,000 shares of common
stock
(par 10 cents) being offered in exchange for
Hamilton Gas Corp. capital stock (par $1) on the basis
Canada
•
Public
Jan. 24
of
Ranger Lake Uranium Mines, Ltd., Toronto,
for
New
three
Any shares remaining unsub¬
of mailing of warrants
through the company's executive
committee. Price—$3.75 per share. Proceeds—To
expand
business*; Underwrifcer-^-None.
Feb. 28 filed
55
Proceeds
Vegas,
Los
L and
.
filed
Nev.
For^new construction.
—
Underwriters—William
R.
Office
Los
—
Staats
Co.,
Angeles, Calif.; Hornblower & Weeks, New York;
First California Co., Sap
Francisco, Calif.
(letter of notification) 8,000 shares of common
stock (par $1).
Price — At market (around $2.87Vz to
$3.37% per share). Proceeds—To a selling stockholder.
it Southern States Oil Co., Laurel, Miss.r
^
V
Feb. 25 filed 250,000 shares of common stock
(par one
cent). Price—$2 per share. Proceeds—For further ex¬
ploration and development of properties^ for drilling
costs and for acquisition-of interests in other *oil com¬
stock
Office—Willey St., Auburn, N. Y..
panies.
writers—Percy Dale Lanphere
Feb. 24 filed 4,000 shares of 5%%
55 cents per share.
^
Proceeds
To selling stockholders.
Underwriter—L. D. Friedman & Co., New York.
it Remington Corp.
—
Feb. 24
New Silver Belle
Mining Co., Inc., Almira, Wash.
Sept;. 8 (letter of notification) 500,000 shares of common
(par two cents). Price—10 cents per share. Pro¬
ceeds—For exploration and development costs.
Under¬
both
of
it Ritter Finance Co.,
R. E. Nelson & Co.,
and
it Nobles
Engineering & Maru'abturing Co.
(letter of notification) 3,000 shares of common
per
share.
Proceeds—For workings
14
stock.
preferred
Feb.
Productions,
(3/8)
(letter of notification) 100,000 shares of common
10 cents). Price—$3 per share. Proceeds—
For production of films,
working capital, etc. Business
—Production and distribution of motion
pictures for
•
Inc., both of New York.
of
offered
record
each
for
subscription by
March
16
eight shares
right
to
the
on
held.
subscribe
for
Price—To
be
construction
one
share
new
be
Saaty
Underwriter
g ven
Merrill
—
new
Lynch,
of
there
5%
shares
of
128,000
are
mon
If 11, Pacific
Mass.
lative
cumu¬
preferred
Proceeds—For
writer
To
redeem
tures
due
outstanding $9,000,000 5%%
1973.
Office
Los- Ange-es, Calif.
writers
Blyth & Co., Inc., San Francisco and New
York; and Hornblower & Weeks, New York.
—
—
Paramount Uranium Corp., Moab, Utah
Oct. 7 (letter of notification)
6.000,000 shares of capita)
stock. Price—At par (five cents
per share).
Proceeds—
For mining expenses. Office—325 Main
St., Moab, Utah
Underwriter—Van Blerkom & Co., Salt Lake
City, Utah
Pay Day Uranium Co., Las Vegas, Nev,
notification) 2,500,000 shares of capita)
stock (par two cents).
Price—10 cents per share. Pro¬
ceeds—For exploration and development costs. Office—
230 Fremont St., Las Vegas, Nev.
Underwriter—Allied
Oct. 15 (letter of
Underwriter Co.. the
city.
same
14
filed
100,000
$7,500,000
shares
1,000,000
shares
of
5%
of
of
4%
preferred
common
(3/10)
debentures
stock
stock
(par
due
1970,
(par
$25) and
10 cents) to be
offered in units of $750 principal amount of
debentures,
10 shares of preferred stock and 100 shares of common
stotjc.
Price—To
be
supplied
amendment.
Proceeds—
For acquisition of
producing oil and gas properties. Un¬
derwriter—Smith, Barney & Co., New York.
it Pittsburgh Consolidation Coal Co.
Feb. 23 filed $1,500,000 of participations in the-'compapy's Investment Plan for Salaried Employees and
30,000 shares of common stock (par $1) which may be
purchased
pursuant
to
the
plan.
Porter-Cable Machine Co.
Jan.
27
stock
(par $10)
stockholders of record
new
share
holders.
$11.50
Proceeds—For
N.
Y.
common
being offered for subscription by
mon
for
24.000 shares of
each
per
7%
Underwriters
shares
share;
working
—
Jan.
to
21
held.
public,
capital,
the basis
oh
etc.
Price—To
$12.50
per
com¬
of
one
stock¬
share.
Office—Syracuse,
George D. B. Bonbright & Co.,
Rochester. N. Y.: William N. Pope, Inc., Syracuse, N.
Y.;
Doolittle & Co., Buffalo, N. Y.; and First Albany
Corp.,
Albany, N. Y.
Public Service Electric & Gas Co.
Dec. 22 filed 250.000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment Pro¬
ceeds—To reduce bank loans and for construction
pro¬
gram.
Underwriters—Morgan Stanley &'-Co.;T)rexel &
Co.; and Glore, Forgan & Co;
delayed.
,r,
Offering;
—
Tehaporarily
McGrath
Securities
Corp.,
both
I
shares
(par 10 cents).
debentures
Shumway Uranium Mining Corp.
28 (letter of notification) 200,000 shares of
capital
stock. Price—At par ($1 per share). Proceeds—For min¬
"
exploration and development costs. Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
—Western Securities Corp., Las Vegas, Nev.
underwriter and
Price—10
cents
prior property
per
share.
and exploration expenses.
Lake
City, Utah.
same
owner
to be amended
Proceeds—For development
Office—Newhouse Hotel, Salt
city.
South
Underwriter
Carolina
—
Electric &
Feb. 2 filed 210,053 shares of
Gas
15
shares
held
rights to expire
on
the basis of
(with
on
Co.
common
being offered for subscription by
of record Feb. 24
Van Blerkom & Co.,
new
stock
an
(par $4.50)
stockholders
share for each
oversubscription
10.
$2
—
per
100%
share
and
for
accrued
stock.
interest for
Proceeds—To
Uranium
Corp., Salt Lake City, Utah
notification) 2,500,000 shares of com¬
Price—10 cents per share.
exploration and development expenses.
(par three cents).
Utah.
Under¬
stock (par five cents).
Prices—10 cents per share.
Proceeds—For exploration-and development of
proper¬
ties.
Office —1406 Life of America
Lake
,
Underwriter
—
Western
Building, Dallas,
Corp., Salt
Securities
City, Utah.
Tacony Uranium Corp., Denver, Colo.
.Aug. 17 (letter of notification) 1,700,000 shares of common stock.
Price—10 cents per share.
Proceeds—For
exploration and development expenses.
Office — 317
Railway Exchange Building, Denver,-.Colo. Underwrites
—E. I. Shelley Co., Denver, Colo.
*
.
Temple Mountain Uranium Co.
7 (letter of notification) 3,500,000 shares of com¬
stock (par 2V2 cents).
Price — 3 cents per share.
Proceeds—For exploration and development expenses.
Office—39 Exchange Place, Salt Lake City, Utah. Un¬
derwriter—Walter Sondrup, same city.
Oct.
mon
it Texas Co., New York
Feb.
filed'
23
$7,500,000
of
participations
in
the
Em¬
ployees Savings Plan and 79,365 shares of capital stock
(par $25) which may be purchased pursuant to the
•
Texas
Feb.
stock
March
.
plan.
stock
common
one
(Fla.)
(letter of
Texas.
Proceds—For
Development Corp.
Oct. 8 (letter of notification) 2,900,000 shares of common
stock (par five cents), including shares for option to
Inc.
mon
Silver Pick Uranium, Inc., Reno, Nev.
Nov. 22 (letter of notification) 2,994,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share
Slick Rock Uranium
preferred and
Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
■'
Proceeds—For mining expenses. Office—130 South 13th
East, Salt Lake City, Utah. Underwriter—Peters, Writer
& Christensen, Inc., Denver, Colo.
5
Proceeds—For
Office—64 East 4th South St., Salt Lake
Underwriter—Doxey Investment Co., same
share.
one
Office—Newhouse Bldg., Salt Lake City,
writer—Guss & Mednick Co., same city.
ing expenses.
cents per
units of
Underwriter—Gulf-Atlantic, Inc., Tampa, Fla.
Jan.
Jan.
Price
and
Swedes
mon
(par five cents).„ Price—10
in
bank loans, for new construction and for working
repay
capital.
v
Silver Reef Uranium Co., Salt Lake City, Utah
Jan. 17 (letter of notification) 3,000,000 shares of com¬
offered
18 filed $700,000 of 6% convertible
sinking fund
debentures due 1966 and 70,000 shares of common stock
—
*
be
and
^Sunshine Park Racing Association,
it Selective Credit Corp., Seattle, Wash.
1 (letter of notification) 50,000 shares of common
stock. Price
$1 per share. Proceeds — For working
capital, etc. Office — 1107 American Bldg., Seattle 4,
stock
stock
•Nov.
Feb.
,
to
are
shares; the remaining 80,000 shares of pre¬
180,000 shares of common stock may
be exchanged for properties.
Price—$10 per unit. Pro¬
ceeds—To purchase property; for construction of
hotel;
and for working capital.
Underwriter—Coombs & Co.,
Salt Lake City, Utah.
mining operations. Office — Mineral Bldg.,
Grand Junction, Colo.
Underwriter — Tellier & Co.;
Jersey City, N. J.
,
fe
..
.
two common
ferred
of
Price—$17.50
privilege);
per
share.
Pyramid Life Insurance Co., Charlotte, N. C.
-Proceeds—For new construction program and to furnish
Feb, 15 filed 250,000 shares of capital stock
~a portion of additional
equity capital required by South
be 'offered for subscription
by common stockholders* ef j '-Cardlinar Generating Co.- a subsidiary.
Underwriter—
record March 1, 1955 on the basis of one new
sharejkr
Kidder, Peabody & Co., New York.
■
Sun
Hotel, Inc., Las Vegas, Nev. (3/15)
Feb. 16 filed 760,000 shares of pfd. capital stk. (par
$9.50)
and 1,540,000 shares of common capital stock
(par 25
cents), of which 680,000 shares of preferred and 1,360,000
ceeds— For
City, Utah.
city.
14
'
•
,
Underwriter—None,
to
luxury hotel. Underwriter—None.
None.
Miguel Uranium Mines, Inc.
notification) 2,000,000 shares of common
(par one cent). Price—15 cents per share. Pro¬
stock
a
(letter of notification) 2,915 shares of common
Price—$100 per share. Proceeds—For equipment.
Office—1300 Krick Road, Bedford, Ohio. Underwriter—
Jan. 6 (letter of
mon
(letter of notification)
and
equip
stock.
San
Wash.
Petroleum Reserves, Inc., New York
Feb.
Feb.
Sept.
Co.
share of each class of stock. Price
it Structural Fibres, Inc.
;;
Klein
one
unit. Proceeds—For purchase of land and
per
construct and
a
New York.
Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
—$10.01
Samicol Uranium
V
Avenue, Mel¬
stock
offered in units of
Corp., Santa Fe, N. M.
14 filed 300,000 shares of common stock (par 10
cents).Price-~$2 per share.
Proceeds—For developUnder¬ X. ment and
exploration expenses, etc.
Underwriters—R.
capital deben¬
Hawthorne
Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one
cent) to be
Kinsley & Adams, 6 Norwich St., Worcester,
—
N.
—
—
Finance Corp. (3/14)
f^b. 21 filed $14,000,000 of 4V^% capital debentures due
1967. Price—To be supplied
by amendment. Proceeds—
interests; and to
Proceeds
For
exploration and development costs.
Underwriter—Ned J. Bowman Co., Salt Lake City, Utah
Jan. 20 (letter of
(letter of notification) 14,750 shares of 7%
gas
Underwriter—None.
Star Uranium
Michigan common
shares outstanding.
stock.
Price—At par ($20 per share).
working capital. Office—181-14 Hillside
Ave., Jamaica, L. I., N. Y. Underwriter—Jay Lee Levine,
President, same address.
Funding Corp.
and
Office—Toronto, Canada.
Office—2085
Park, 111.
Aug. 2
Salisbury Broadcasting Corp., Paxton, Mass.
notification) $150,000 of 5% notes and
6,000 shares of common stock (par $1) to be offered first
to stockholders in units of
$1,000 of notes and 40 shares
of stock. Price—$1,000 per unit. Proceeds—For
working
capital. Office
Asnebumskit, Paxton, Mass. Under¬
^Olympic
Feb. 18
N
rose
Underwriter—None.
Pierce, Fenner & Beane, New York.
'
stockholder.
Fuel
which
oil
liabilities.
it Standard Coil Products Co., Inc.
16 (letter of notification) 875 shares of common
stock (par $1). Price—At market. Proceeds—To
selling
Regis Paper Co., New York
Feb. 18 filed 24,381 shares of common stock
(par $5) to
be offered in
exchange for common stock (par $1) of
Michigan Molded Plastics, Inc. on the basis of one St.
for
additional
current
Feb.
St.
the
—
Un¬
derwriter—Willis E. Burnside & Co., Inc., New York.
share for each
Providence, R. I. Underwriter—d'Avigdor &
Co., New York. No general offering planned.
stock
program.
acquisition of
meet
—
exceeding 12,030 shares of
Rights will expire on April 5.
,.v Regis
share for each
by amendment.
Proceeds—For"
supplied
Price
To stockholders, 50 cents
per
share; and to public, 60 cents per share. Proceeds—For
exploratory and developmental expenses; for possible
Products, Inc., Berlin, Conn.
(letter of notification) 5,727 shares of common
being offered for subscription by stockholders of
one
16 filed
each share held.
Broad St.,
(par $10)
not
unsubscribed stock.
any
basis of
Employees will
per
—
stockholders
common
Price—$75
Injector Corp., Providence, R. I.
Feb. 11 (letter of
notification) 800 shares of common
stock (par $1). Price—At market
(estimated at $12 per
share). Proceeds
For working capital. Office—1050
•
be
Oils, Ltd. (3/15)
1,211,002 shares of common stock (par $1)
511,002 shares are to be offered for subscription:
by existing stockholders on a basis of one new share for
expire on March 4, 1955. Price
($25 per share). Proceeds
For purchase of
machinery and equipment. Office—Fairview Place, Ber¬
lin, Conn. Underwriter—None.
theatrical, and non-theatrical exhibitions.
Office—222 East 46th St., New York, N. Y. Underwriters
—Milton D. Blauner & Co., Inc. and Baruch Brothers
to
shares.
B
—At par
television,
Oklahoma Gas & Electric Co.
(3/18)
Feb. 23 filed 331,643 shares of common stock
class
record Feb. I, 1955 at the rate of
two shares held; rights to
(par
& Co.,
10
Co., Inc., New
of which
28
stock
3
stock
share and
&
Southern Union
Feb.
Rowland
Jan.
American Television
Inc.
•
Proceeds—To reduce bank loans and for working
capital. Underwriter—None.
Office—645 E. Seventh St., St. Paul, Minn,' Un¬
derwriter—None.
"
North
cumulative preferred
(par $50) and 40,000 shares of class
(par $1) to be offered in units of one
stock
common
Underwriter—Gordon Graves
York.
Pa.
unit.
Price—$25
capital.
•
Syncote,
stock, third series
Spokane, Wash.
B
Feb*
Inc.,
Underwriter—None.
16
(par $1)
holders
each
Hydro Electric Corp.
to be offered for subscription by stock¬
4 on basis of eight new shares for
March
on
five shares
Price—$2.35
to
(3/4)
(letter of notification) 56,000 shares of common
public.
per
held; rights to expire March
14, 1955.
share to stockholders; $2.70 per share
Proceeds—To pay interest on bonds and de-
Continued
on
page
56
*
The Commercial and Financial Chronicle
1068
56
Continued from page 55
taxes, bank loan and insurance premium.
nderwriter—Creston H. Funk & Co., ban Antonio, Tex.
•
International Sulphur Co.
Texas
stock (par 10
cents), of which 385,OUU snares are to be offered foi
rabscnption by common stockholders at the rate of one
new snare for eacn 4%
shares held; and 70,uuu sharei
are for account of certain selling stockholders. .Price—To
be supplied by amendment. Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter— V lexers Brothers, New York, on a "best ef¬
filed 4ab,000 snares
21
June
oi common
forts" basis.
Sequin, Texas (3 4)
notification) 41,600 shares of common
stock (par $1) to be offered for subscription by stock¬
holders on March 4 on basis of one new share for each
two shares held; rights to expire March 14, 1955. Price—
52.75 per share to stockholders; $3.15 per share to public.
Proceeds—To pay off outstanding debts. Underwriter—
Creton H. Funk & Co., San Antonio, lex.
•
Power Corp.,
Texas
(letter of
16
F*b
Texboard, Inc., Dallas, Texas
Jan. 17 filed $1,500,000 of 6% series A
debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $l,u00,000
of 6% series B convertible debentures due serially from
to Aug. 1, 1966. Price—To be supplied by
Proceds—To construct and operate a manu¬
facturing plant near Orange, Tex., lor the purpose of
manufacturing
insulation building products.
Under¬
writer—Emerson Cook Co., Palm Beach, Fla.
Feb.
1, 1962
amendment.
Thunderbird Uranium Co., Reno, Nev.
(letter ot notiiication/ i,ouu,i)00 shares of com¬
(par 10 cents). Price — 15 cents per share.
Proceeds—lor mining activities. Office—2Ub N. Virginia
Aug. 3
stock
mon
Uudei writer—block, Inc., Salt Lake City.
St., Reno, Neh.
Uranium & Oil, Inc., Denver, Colo.
Feb. 1 (letter ot notification) 30,u00,000 shares of com¬
mon
stock.
Price—At par (one ceht per share).
Pro¬
ceeds—For mining expenses.
Office—1122 Mile High
Tip Top
Wil-
Coio. Underwriter—Robert W.
1717 East Colfax Ave., Denver, Colo.
Center, Denver 2,
tjn,
mon
z,990,0u0 shares of com¬
Price—At par (10 cents per snare).
Pro¬
exploration and development costs.
Office
(letter ot notification;
1
stock.
ceeds—lor
Utah. Underwriter
—358 S. 3rd St. East, bait Lake City,
—Western Securities
Corp., same
17
Underwriter—Bristol Securities Co., Fall
St., Ely, Nev.
River, Mass.
.
4
ic Van Norman Co., Springfield, Mass. (3/23)
reb. 28 filed 124,667 shares of common stock (par $2.50)
warrants to purchase 124,6b7 additional
shares of common stock, to be offered for subscription
-and
10-year
by common stockholders in units of one share of com¬
stock and one warrant for the purchase of one
held about March
23,
1955
(for a
14-day standby). Price — To be
supplied by amendment.
Proceeds — To reduce bank
loan and
note held
by insurance company, and for
working capital. Underwriter — Paine,
son
& Curtis, Boston and New York.
Webber, Jack¬
Washington Gas Light Co. (3/8)
126,349 shares of common stock (no par) to
be offered for subscription by common stockholders of
Feb. 17 filed
March
record
7
the rate of
at
Inc., Salt Lake City, Utah.
Cct. 5 (letter of notification) 15,000,000 snares oi com¬
mon stock (par one cent),
price—Two cents per share.
Proceeds
For exploration and
development costs.
Oifice—424 Judge Bldg., bait Lake City, Utah.
Under¬
—
writer—James E. Reed Co., same city.
Canadian
United
Feb.
7
Uranium
one
new
share for
each
l,188,u00 shares of
(letter of notification)
com¬
stock
(par one cent;. Price—25 cents per snare.
Proceeds—For mining expenses. Office—70i Ernest and
mon
Cranmer Building, Denver 2, Colo.
Underwriter—Car¬
roll, Kirchner & Jaquith, Inc., same city.
United Uranium
Corp., Denver, Colo.
(letter of notiiication) 4,133,329 shares of com¬
stock (par one cent), of which 2,133,329 shares are
Jan. 26
mon
covered
three
by
an
otier
of rescission
37 snarenoiders at
to
shares are to be
publicly offered at 10 cents per share. Proceeds—For
mining expenses.
Underwriter—Joim L. Donahue, 430
16th Street, Denver 2, Colo.
cents
share;
per
2,(Jt)0,UuO
and
ir Universal
Finance Corp., Dallas, Texas
(letter of notification) 27,00u shares of 70-cent
cumulative preferred stock (no par) and 27,000 shares
Feb.
16
of
common
of
one
stock
share of
Proceeds
Perkins
—
&
(par
eacn
For
15 cents)
be offered in
to
class of stock.
working
Co., Dallas,
Price—$11
capital.
units
unit.
per
Underwriter
—
j.
f.
Texas.
Universal Petroleum Exploration &
Drilling Corp.
Oct. 4
(letter of notification) 300,000 shares of
stock.
Price
common
At par
($1 per share). Proceeds — For
cost of Driller Boy (drilling equipment which
company
ronts out), and working capital.
Office—c/o Edwin J.
Botson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las
Vegas,
—
Nev.
Underwriter—Robert
B.
Fisher
In¬
vestments, 510 South Fifth St., Las Vegas, Nev.
Uranium
Discovery & Development Co..
Wallace, Idaho
Nov.
16
(letter of notification) 1,000,000 shares of capi¬
tal stock.
Price—At par (five cents per share).
Pro¬
ceeds—For core drilling program
upon two groups of
claims.
Address—Box 709,
—Wallace Brokerage
Co.,
Wallace, Idaho.
same
Underwriter
city.
Boston Corp., New York;
Washington, D. C.
mon
7
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of
•
Webster
stock
(par
cent). Price—Five cents per share.
Proceeds—For exploration and
development costs. Of¬
fice—420 Felt Building, Salt Lake
City, Utah. Under¬
one
writer—Western
Securities
Corp.,
Las
Vegas,
Nev.
Utah Apex Uranium Co.
Oct.
18
Mines, Ltd., Toronto, Canada
(regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral
corporate
purposes.
Securities Corp.,
three weeks.
Underwriter—James Anthony
New York.
Offering—Expected in two
or
ic Wellington Fund,
Inc.
shares of
Feb. 23 filed 2,000,000
Price—At market.
common
stock (par $1).
Proceeds—For investment.
Offices—
Philadelphia, Pa.
Wenga Copper Mines, Inc., N. Y.
Nov.
18
(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents per share.
Pro¬
ceeds—For general corporate purposes.
Underwriter—
Willis E. Burnside
Proceeds—For
exploration
and
development
expenses
Office—430 Judge Bldg., Salt Lake
writer—Mid-Continent Securities,
City, Utah. Under¬
Inc., same city.
Utah Uranium Corp., Las Vegas,
Nev.
Aug. 20 (letter of notification) 10,000,000 shares of
capi¬
p
tal stock
(par 1 cent).
Price
—
Three cents per share
Proceeds—For
exploration and development expenses
Office—1818 Beverly Way, Las
Vegas, Nev. Underwriter
—First Western
Securities, same
Nov.
20,
&
city.
filed
1952
Co., New York.
Co., Dallas, Tex.
$29,000,000 12-year 6% debentures
due Dec.
15, 1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one $50 deben¬
ture
and
one
share of stock.
Price—To
be
supplied by
1,125,000
Proceeds—From sale of units and
amendment.
Proceeds—For
exploration
and
development
expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.
Zapata Off-Shore Co., Houston, Texas
14 filed 315,000 shares of common stock
(par 50
Price—To be supplied by amendment (expected
at $5.50 per share). Proceeds—For equipment and work¬
ing capital. Underwriter—Underwood, Neuhaus & Col,
Feb.
cents.)
Houston, Texas.
Zenith
.
Uranium &
Mining Corp.
July 12 (letter of notification) 300,000 shares of
stock
(par
cent).
one
Price—$1
common
share. Proceeds—
Underwriter—Sheehan & Co.,
For
mining operations.
Boston, Mass.
per
Prospective Offerings
Dec.
30
it
Co.
Power
(5/31)
announced
company plans to issue and
$15,000,000 first mortgage bonds due 1985. Proceeds
—To repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
was
sell
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co. (jointly); The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.;
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly).
Bids—Expected to be received up to 11 a..m. (EST) on
May 31. Registration—Scheduled for May 4.
American Telephone
Feb.
directors
16
& Telegraph Co.
recommend
to
voted
to
stockholders
issue of not to exceed $650,000,000 convertible debentures at their annual meeting to
that they
authorize
held
be
a new
When issued, each stockholder
purchase the debentures in pro¬
portion to his holdings of stock (probably on the basis /
of $100 of debentures for each eight shares of stock
held). Underwriter—None.
April
on
20.
would receive rights to
Arkansas
Power
&
Offering—Post¬
(3/30)
plans to issue and
sell
93,500 shares of cumulative preferred stock (par
$100). Price—$105 per share. Proceeds—Together with
other funds, to redeem 47.609 shares of $7 preferred
stock and 45,891 shares of $6 preferred stock.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Blyth & Co., Inc. and Smith, Barney & Co.
(jointly); Lehman Brothers; White, Weld & Co.; Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
ly). Bids—Expected to be received up to 11 a.m. (EST)
on March 30.
Registration—Scheduled for March 3.
Inn, Fort Worth, Texas
200,000 shares of capital stock (no par).
Price—$5 per share.
Proceeds—Together with other
funds, to construct, furnish and equip hotel to be built
(3/30)
applied to the Arkansas P. S. Commis¬
authority to issue and sell $18,000,000 of first
mortgage bonds due 1985. Proceeds—To redeem a like
amount of 4Vi% bonds due 1983.
Underwriter—To be
between Dallas
determined
shares of common stock and private sales oi
$55,000,000 first mortgage bonds to be used to build s
1,030 mile crude oil pipeline.
Underwriters — White,
Weld
Co. and Union Securities Corp.,
Offering—Postponed indefinitely.
&
York.
West Coast
both of New
Pipe Line Co., Dallas, Tex.
Nov. 20,1952 filed 1,125,000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities
Corp.,
both
of
New
York.
poned indefinitely.
Western
Jan.
31
and
Fort
Worth, Texas.
Underwriter—
Schwanz & Co., Inc., Aurora, 111.
•
Westport Properties Corp., Kansas City, Mo.
479,158 shares of common stock (par $1)
being offered for subscription by stockholders of Chi¬
cago, Aurora & Elgin Ry. Co. at rate of one Westport
share for each Chicago, Aurora & Elgin share held as of
Jan. 27 filed
Feb.
15; rights to expire
on March 4.
Price — $2 per
Proceeds—To repay bank loans and for working
share.
capital.
Underwriter—George K. Baum
&
17
it
Feb.
White Canyon
Mining Co. (3/15)
shares of common stock (par 33%
cents). Price—$1 per share. Proceeds—To repay loans
and advances; for capital acquisitions; and for expendi¬
tures and working capital. Office — Dove Creek, Colo.
Underwriters—Joseph McManus & Co., New York; and
A. P. Kibbe & Co., Salt Lake City, Utah.
17 company
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Stone
& Webster Securities Corp. (jointly); Blyth & Co., Inc.
and Central Republic Co., Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Beane; Equitable Securities Corp. and
Union Securities (jointly); White, Weld & Co.; The First
Boston Corp.
Bids — Expected to be received up to
11 a.m. (EST) on March 30.
Registration — Scheduled
March 3.
Atlantic
Coast
of
new
a
1, 2002.
ury
Underwriter—None.
common
stock
(par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,
P. O. Box 648, Moab, Utah. Underwriter—Security Ura¬
nium Service, K. O. V. O. Bldg., Provo, Utah.
28
market.
come
filed
Income
Fund, Inc., Baltimore, Md.
Price—At
500,000 shares of capital stock.
Proceeds—For
investment.
Underwriter—In¬
Managers Inc., New York, which is under the di¬
of its President, Pierre A. DuVal, of DuVal's
rection
Consensus Inc.
Woodland Oil & Gas
Co., Inc.
Dec. 21 (letter of notification) 299,900 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For equipment, drilling expenses and working capital
Office—42 Broadway, New York, N. Y.
Underwriter—
E. M. North Co., Inc., same address.
Purpose—To reimburse treasury,
subject to further order of the Interstate Commerce
It is not proposed to sell or otherwise dis¬
Commission.
pose
of the series X bonds at this time, nor is it intended
these bonds will ever be issued as such, except
possibly in pledge.
Vegas, Nev.
proposal to issue $13,474,000
3V2% bonds, series
part, for capital expenditures already made. Under¬
Bonds are to be held in company's treas¬
Feb.
Mining Co., Moab, Utah.
Jan. 20 (letter of notification) 500,000 shares of
a
writer—None.
that
Las Vegas, Nev.
11
(letter of notification) 48 shares of common
(no par). Price—$2,412.90 per share. Office—425
RR.
series of general mortgage
X, due Aug.
in
Line
approved
^ Wilton Corp.,
Jan.
company
for
Feb. 7 directors
Feb. 4 filed 3,000,000
stock
Light Co.
announced
was
sion
Co., Kansas
City, Mo.
•
Feb.
Arkansas Power & Light Co.
Hills
filed
Woman's
(letter of notification) 3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
tal stock
Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Alabama
Uranium
Winfield
com¬
Wyoming Minerals Corp., Thermopolis, Wyo.
,
of common
Price—$1 per share. Proceeds—To pay current
bills and purchase equipment and supplies. Underwriter
—H. P. Jesperson, 2111 Nicholas St., Omaha, Neb.
Feb. 16 (letter of notification) 250,000 shares
and Johnston, Lemon & Co.,
Dec. 30
Fremont Street, Las
Utaco
Oct.
*
stock.
eight shares held; rights to expire on March 23. Price—
supplied by amendment. Proceeds—For additions
and improvements to property. Underwriters—The First
additional
Corp.
Thursday, March 3, 1955
World Uranium Mining Corp.
July 21 (letter of notification) 9,996,000 shares of common
stock
(par one cent). I Price — Three cents pel
share. Proceeds—For exploration and development ex¬
penses.
Office—323 Newhouse bldg., Salt Lake City,
Utah. Underwriter—P. G. Christopulos & Co., same city.
To be
city.
Uranium,
.
•
Wallace, Idaho
Oct. 15 (letter of notification) 1,500,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For expenses incident to mining operations. Ad¬
dress—P. O. Box 289, Wallace, Idaho. Underwriter—Alden J. Teske, d/b/a Wallace Brokerage Co.; Samuels
Hotel, Wallace, Idaho.
Vulcan-Uranium Mines, Inc.,
West Coast Pipe Line
Uintah
.
mon
additional share for each three shares
Claymont, Del., and
Corp.
Uranium
Trans-Continental
Oct.
(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman
Jan.
bentures,
1_
Ely, Nev.
Vada Uranium Corp.,
/
.
-
•
A Atomic Development Mutual Fund, Inc.
Feb. 24 it
was
reported Fund plans early registration of
about 1,000,000 shares of capital stock
writer— Equitable
Securities Corp.,
Registration—Expected March 4.
(par $1). Under¬
Nashville, Tenn,
<
.
.
(5/2)
Feb. 28 it was reported company may offer and sell
about 550,000 shares of common stock and 359,000 shares
of preferred stock. Price;—About $11 per common share
and $10 preferred share.
Underwriter—Johnson, Lane,
★ Augusta Newspapers, Inc., Augusta, Ga.
Space & Co., Savannah, Ga.
-
.
-
Baltimore & Ohio RR.
received ICC exemption from competi¬
$345,000,000 of new securities. Pro¬
Underwriter—Feb. 16, Howard E.
Simpson, President, announced Glore, Forgan & Co.,
Halsey, Stuart & Co. Inc. and Alex. Brown & Sons have
been engaged to continue studies and formulate plans
looking towards a simplification of the railroad's debt
Feb. 10 company
tive bidding of up to
ceeds—For refunding.
structure and
a
reduction in over-all interest costs.
-
Number 5408
Volume 181
.
.
The Commercial and Financial Chronicle
.
1069
-Central of Georgia Ry.
The First Boston Corp.; Lehman
(3/9)
Bids will be received by
the company up to noon (EST)
March 9 at office of J. P. Morgan & Co. Incorporated,
on
Wall
23
St., New York 8, N. Y., for the purchase from
A, to
it of $930,000 of equipment trust certificates, series
mature in 15 equal annual instalments.
Probable
bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.; Blair & Co. Incorporated.
ders:
•
Feb. 14 it
announced company plans to offer to its
was
stockholders the right to subscribe for one
share of
common
stock for each five shares held.
new
Stock¬
holders will vote April 29 on increasing authorized com¬
from
stock
4,000,000
5,000,000 shares. PriceTo be determined shortly before offering is made. Pro¬
ceeds—For new construction and general corporate pur¬
poses.
Underwriter — May be Glore, Forgan & Co.,
mon
Chicago.,' 111.
-
in March.
North
•''. /
-
j-■
,
17, D. L. Alberty, Executive Vice-President, an¬
nounced that the company will have another stock issue
1
!
';•*'>
j
\
■''
the
in
future.
near
Proceeds—For
expansion.
Feb. 14 it
16
tures
man,
will vote March
000
shares). Underwriters — The First Boston Corp.;
Blyth & Co., Inc.; Glore, Forgan & Co.; and the Union
Securities Corp.
Exemption from the competitive bid¬
received on Feb. 17. If all holders of
preferred stock convert their shares into common stock
rule
ding
share-for-share
a
on
was
basis
there
will
be
no
debenture
sale.
•
Feb. 24 stockholders
Trust
Colonial
Feb. 24 it
would
be
Co., New York
announced stockholders of record Feb. 25
was
offered
the
right to subscribe on or before
March 17 for 20,000 additional shares of capital stock
(par $25) at the rate of one new share for each two
shares held.
Price—$50 per share.
Proceeds—To .in¬
crease capital and
surplus.
Commonwealth
Edison Co.
Jan. 24, Willis Gale, Chairman, announced it should be
Fall before the company undertakes its next
financing.
Proceeds—For
construction, which, it is estimated,
will cost about $125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston
Corp.
and Glore, Forgan & Co.
new
Mines, Inc.
stockholders authorized the issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bondi
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.
Detroit Edison
Jan.
21
vote
on
it
stockholders
May 2 will
authorizing about $60,000,000 of convertible de¬
Previous
bentures.
on
offer of convertible debentures
made to stockholders without
to
increase authorized
capital stock from
in anticipation of
1,000,000 shares to 3,000,000 shares
expansion of the company's activities.
UnderwriterPrevious financing handled by Greene & Co., New York.
ElectroData
Feb. 23 it
Corp., Pasadena, Calif.
it
was
common
stock to raise
approximately $2,000,000 in
new
capital. Proceeds — For expansion and working
capital. Underwriter—Blyth & Co., Inc., San Francisco
New
31
it
Corp.
reported
was
company plans to offer to its
232,000 additional shares of common
stockholders about
stock
on
l-for-10
a
basis in
writers:
Kidder, Peabody
Pierce, Fenner & Beane.
it Florida Power
Feb. 28 it
May or June 1955. Under¬
& Co. and Merrill Lynch,
Underwriters—James Anthony Securities Corp.,
Lawrence A. Hays Co., Rochester, N. Y.;
Bowman
Illinois Central
Jan. 26 it
& Light Co.
Probable bidders:
Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Lehman Brothers and Blyth & Co., Inc.
(jointly); Carl M. Loeb, Rhoades & Co.;.Union Securi¬
ties Corp.
22,
N. Y. Underwriters—Milton D. Blauner &
Co.; Baruch
Brothers & Co.; and Hallowell,
Sulzberger & Co.
it Iowa Public
it
was
announced
plans
company
Offering—No definite date has been set.
publicly
plans to issue and sell
$12,000,000 first mortgage bonds. Proceeds
To repay
—
bank loans
and for new construction.
be determined by competitive
bidding.
Feb.
and Merrill Lynch,
Pierce, Fenner & Beane
(jointly); White, Weld & Co.; Kidder, Peabody & Co.
Offering—Expected before the end of June.
Jersey Central Power & Light Co.
was reported
company plans to sell $5,000,000
16
it
announced
was
contemplates
company
that
be effected in
the
coming
year.
With this thought in
mind
the directors have proposed an amendment to the
charter to create additional shares of preferred
stock,
Underwriter—Paine, Webber, Jack¬
& Curtis, Boston, Mass.
without
son
par
value.
Georgia Power Co.
Dec.
sell
(5/10)
ceeds—To
gram.
retire
bank
loans
Underwriter—To
bidding.
Probable
be
bidders:
and
for
construction
determined
Halsey,
by
Stuart
pro¬
competitive
&
Co.
Inc.;
;
and
sale
Keystone Wholesale Hardware Co., Atlanta, Ga.
was stated that the
company plans at a later
date to offer additional shares for sale
nationally.^ An
offering of 16,666 shares of common stock is presently
being made to residents of Georgia only at $3
Office—517 Stephens St.,
S.W., Atlanta, Ga.
per
share.
Maine Central RR.
the
sold
&
Electric
V
Co.
*
|
r
to issue and
was
!
May 1, 1956 (convertible into preferred stock
maturity) and 287,000 shares of common stock (par
in units of
$60 principal amount of notes and
$1)
share
one
of stock.
Price—$70 per unit. Proceeds—Together with
funds, to finance construction of a 1,400-mile
other
natural
pipe
gas
Sumas,
Wash.,
line
between
the
on
1,549, 100 shares of
Canadian
common
Ingancio,
border.
Colo., and
addition,
In
stock would be offered for
subscription by present stockholders who
already own
700,000 shares. Underwriter—White, Weld &
Co.; Kid¬
der, Peabody & Co.; Dominion Securities
Corp.; Union
Securities Corp.
Registration—Expected early in March.
Pan
American
Sulphur Co.
reported company is considering offer late
$4,500,000 subordinated convertible deben¬
tures (first to
stockholders).
Feb. 3 it
&
Co.
was
of
and
York.
Underwriter—Kuhn, Loeb
Rhoades & Co., both of New
Carl M. Loeb,
Registration—Expected early in March.
Pennsylvania Electric Co.
Feb. 15 it
reported company plans to issue and sell
$9,300,000 of first mortgage bonds. Pro¬
repay bank loans and for new
construction.
Underwriter—To be determined
by competitive bidding,
probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.;
Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman
Ripley & Co.,
was
later this year
ceeds—To
Inc.
-
Pennsylvania
it
was
■
Electric
Co.
reported company proposes issuance and
$7,500,000 of preferred ibtock
ceeds—For
construction
later this year.
Pro¬
program.
Underwriter—To be
determined by competitive
bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, For¬
gan & Co. (jointly);
Kidder, Peabody & Co.; The First
Boston Corp.;
Smith, Barney & Co.; Harriman Ripley &
Co. Inc.
it Public Service Co. of
Indiana, Inc.
Feb. 28, it was announced
company plans to offer to its
common stockholders the
right to subscribe for 202.431
shares
asked ICC for authority to issue
$1,700,000 of new 23-year first mortgage collateral bonds
for sale without competitive
bidding. Proceeds—To re¬
deem
approximately $1,400,000 of 5% first mortgage
company
divisional bonds which
Gas
notes due
at
Feb. 21
$100)
of
convertible
on
1-1'or
a
21
cumulative
preferred stock (par
Stockholders will vote on
Price—$105 per share. Under¬
basis.
financing on April 4.
writer—May be Blyth & Co., Inc., New York
Francisco.
in 1952 through Blair
Nov. 11 it
and
San
Public
Incorporated, New York, and Coffin & Burr, Inc.,
were
Maine
Central
given
RR.
Miller, President, said company has
the idea of refunding the $17,000,000 5ys%
up
mortgage
and
collateral trust bonds due
bidders for new bonds may include
Probable
1978..
Halsey,
Inc.; Kidder, Peabody & Co.; W. C. Langley
Co.; Coffin & Burr, Inc.; The First Boston. Corp.;
Merrill Lynch,
Pierce, Fenner & Beane; Blyth & Co.,
Inc.; Glore, Forgan & Co.
Stuart & Co.
&
.
are
Bros. &
Pacific
RR.
equipment
trust
certificates
April for
or
due
1956-1970.
bidders:
Halsey, Stuart & Co. Inc.; Salomon
Hutzler; Blair & Co. Incorporated; Kidder, Pea¬
body & Co.
14 it
Public
Service
Co.
writer—May be Kidder, Peabody & Co., New York.
Feb.
8
vote
on
it
(G.
was
a
C.)
Co.,
announced
proposal
McKeesport,
to increase
the
on
authorized
$3,000,000 to $20,000,000.
April 12
limit
of
Proceeds—
—
>
,
.
Feb. 21
it
was
Republic
it Radio Receptor Co., Inc.
-Feb.
28
it
expected
which
was
of
reported
about
that
\
<
public offering is
a
250,000 shares
of
common
100,000 shares will be sold for
it Savannah Electric
Feb.
23
165,000
Corp.
announced company
&
it
was
shares
of
plans to offer to its
&
of
account
public
common
company
and
stock
100,000
Underwriters—The First
Webster
com¬
Under¬
Power Co.
reported
of
soon
stock, of
150,000 shares for selling stockholders.
writer—Bache & Co., New York.
(4/14)
offering is planned
(65,000 shares for
of
ac¬
shares
for
Boston
Corp. and Stone
the
Securities
Donner
Corp., both of New York.
tration—Planned for March 17.
Regis¬
it Southern California Gas Co.
Feb. 28 it
was
reported company plans to issue and sell
first mortgage bonds.
of
been- filed
expansion program. Underwriter
Merrill Lynch,
Pierce, Fenner & Beane, New York, handled preferred
stock financing in 1942.
Shares
bidders:
Harriman Ripley & Co. Inc.
and
Co. Inc. (jointly);
Smith, Barney &
Co.; Kuhn, Loeb & Co.; Glore,
Forgan & Co. Offering
Expected in April or May, 1955.
Central
$40,000,000
Pa.
stockholders will
For
National
Probable
Estate.
reported company stockholders will vote
March
12
on
increasing common stock from 530,000
shares to 2,000,000 shares to
provide for a 3-for-l splitup, and additional
stock for future issuance.
Under¬
Murphy
(par $100).
Underwriter—To be determined
by competitive bidding.
count
was
was
pany and
expected to be received in March
Probable
Service Co. of Oklahoma
reported that company plans to issue
and
100,000 shares of new preferred stock
sell
Feb. 14, E. Spencer
first
plans issue
company
11, Federal Power Commission approved the com¬
pany's plan to offer publicly $17,220,000 of 6% interim,
sale of
Corp.; Merrill Lynch,
Pierce, Fenner & Beane and White, Weld & Co. (joint¬
ly); Glore, Forgan & Co. Offering — Expected before
July 1.
indebtedness from
30 it was announced company plans to issue and
$12,000,000 of first mortgage bonds'due 1985. Pro¬
Feb. 23 it
Probable bidders: The First Boston
not
(5/17)
reported
reported company plans
sell
$15,000,000 of first mortgage bonds in July. Underwriter
—To be determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Lehman Brothers and
Blyth & Co., Inc. (jointly); The First Boston
Corp.;
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc. and
Union Securities Corp.
(jointly); Smith, Barney & Co.
Proceeds—For construction program.
Underwriter—To be determined by competitive
bidding.
& Co.
was
it Oklahoma
of preferred stock.
Feb.
additional financing in the form of additional bank
loans,
subordinated debt and/or additional preferred stock will
it
Underwriter—To
Probable bidders:
Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated; Leh¬
man Brothers; Union Securities
Corp., Salomon Bros. &
Missouri
Corp., Chicago, III.
Edison Co.
24
in March
Jersey Central Power & Light Co.
$3,765,000
to
Unlerwriter—None.
General Finance
Co.
Feb. 21 it was reported
company
Bids
offer 200,000 shares of its common stock to residents of
Texas only. Price—$5 per share.
Proceeds—For work¬
ing capital.
Service
Feb. 28 directors authorized officers to sell
270,000 addi¬
tional shares of common stock (par $5) to common stock¬
holders on a pro rata basis/ Price—To be named later.
Proceeds — For construction program.
Underwriter —
Missouri
^ Galveston-Houston Breweries, Inc.,
Galveston, Texas
28
Raw
Materials Corp., New York
Feb. 21 it was reported that
offering of 125,000 shares of
common
stock is soon expected.
Proceeds—To selling
stockholders. Office—575 Madison
Ave., New York
19
Price-
Pacific Northwest Pipe Line
Corp.
was
Industrial
None.
public.
Feb.
reported company plans to sell in Illinois
only, 15,000 shares of 51/2% cumulative preferred stock
(par $50).
Underwriter—Central Republic Co. (Inc.),
Chicago, 111.
•
reported company plans in April to offer
publicly 305,000 additional shares of common stock (no
par).
Price—To be named later.
Proceeds—For con¬
struction program. Underwriter—To be determined by
Feb.
Co., Salt Lake City, Utah.
Telephone Co.
Boston, Mass.
was
competitive bidding.
that
York;
Feb.
Dec.
Uranium, Inc.
announced
was
and Ned J.
and New York.
Florida Power
com-*
company plans to issue
150,000 shares of common stock. Price—$2 per
Proceeds—For exploration and development ex¬
share.
common
tration—Scheduled for April 26.
increase the
Jan. 27 it
announced company plans to file a regis¬
tration statement soon with the SEC for the sale of addi¬
tional
to
Feb. 21 it
Helicopters, Inc.
Donald S. B. Waters, President, announced stock¬
Feb. 17
vote
.
and sell
was
underwriting.
Doman
holders voted
to
Offer-
*
Hutzler
Co.
announced
was
Underwriter—None.
June, 1955.
r
Consolidated Uranium
July 23
or
were
Horseshoe Bend
1
of
—
by 25,000 shares to 62,500 shares (par $20),
the additional stock
probably to be offered to stock¬
holders. Underwriter—None.
Feb.
to
$30,000,000 of first mortgage bonds due 1985. Under¬
writer
To
be
determined by competitive bidding.
.Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Glore, Forgan & Co.,
White, Weld & Co.
- and
Union Securities
Corp. (jointly); The First Boston
Corp. Bids—Expected to be received on
May 17j Regis¬
stock
penses.
•yt Collins Radio Co. (3/29)
Feb. 21 it was reported company plans to issue and sell
about 100,000 shares of convertible preferred stock (par
$100). Registration—Tentatively scheduled for March 8.
Underwriter—Kidder, Peabody & Co., New York.
shares held.
ing—Expected in May
mon
shares
Dillon & Co., New York.
-of
it Hartford Special Machinery Co.
$65,000,000 of 40-year income debentures. Proceeds
outstanding preferred stock (about 620,-
*
420,000
be offered
soon
★ Ohio
1965, first to preferred and common stock¬
rate of $25 principal amount of debentures
at
directors have authorized the issue and sale of not more
—To redeem its
will
be named later.
Proceeds—To The Post Publishing
Co., publisher of The Boston Post. Underwriter—East¬
$1,500,000 convertible deben¬
for each three
than
(par $5)
Co.
announced
.
due
holders
Gas
was
Feb.
issuance and sale of
on
it
To
Under¬
~
announced stockholders
was
Penn
17
stock
writer—Eisele & King, Libaire, Stout & Co., New York,
handled previous financing.
Hartford Gas Co.
Underwriter—Dominick &
Registration—Planned for early
Dominick, New York.
Dec.
Chicago, Rock Island & Pacific RR.
Jan. 11, J. D. Farrington, President, announced that the
1
-
Gulf Cities Gas Corp.
to
•
•
stockholders the right to subscribe for
360,000 shares of
capital stock (par $1) on the basis of one new share for
each two shares held. Price —
To be determined later.
Proceeds—For - investment.
ties
Jan.
Chicago Corp.
common
Brothers; Union Securi¬
Corp. and Equitable Securities Corp. (jointly);
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. & Hutzler (jointly); Harriman
Ripley
& Co. Inc.; Blyth & Co., Inc. and Kidder,
Peabody & Co.
(jointly)./Bids—Expected to be received up to 11 a.m.
(EST) on May 10. Registration—Scheduled for April 13.
57
with
emption
from
California
competitive
last sale of
P.
U.
Application has
Commission for ex¬
bidding.
Bids
received
on
bonds were from
Halsey, Stuart & Co: Inc.?
Blyth & Co., Inc.;,White, Weld & Co. and Union Secu¬
rities Corp.
(jointly); Lehman Brothers.
Southwestern Gas &
Jan.
17
it
was
reported
Electric Co.
company
is planning to issue
Continued
on
page
58
\
The Commercial and Financial Chronicle
1070
58
Continued
jrom
construction program for 1955 and replacement of bank
57
page
000,000 of bonds will be sold later this year (may be
privately). Underwriter—White, Weld & Co. and
Stone & Webster Securities Corp.
Feb. 7 it
+ United Gas Corp.
Feb. 24, N.
C. McGowen, President, announced that
corporation plans to raise $35,000,000 to $40,000,000 in
the first half of 1955 through the sale of additional com¬
Bruce
stock
(par $5), which are to be offered to common
on
the basis of one new share for each
stockholders
later.
five shares held. .Price—To be named
For
Proceeds—
Underwriters — Merrill
Lynch, Pierce, Fenner & Beane, , New York; Bacon,
Whipple & Co., Chicago, 111.; Dean Witter & Co., San
general corporate purposes.
Vanadium
Francisco, Calif.
Feb. 21
it Transamerica Corp.
25 F. N. Belgrano,
Chairman
Feb.
that
and President,
an¬
company
Gas
Transcontinental
Nov. 24
Tom
Pipe
Line Corp.
NOTICES
DIVIDEND
it
•
19 it
$25,000,000
(4/1)
first
of
mortgage
To
—
in
the
determined
by
DIVIDEND ' NOTICES
The
five
Board
of
Directors
has
the
at
close
of
business
14,
March
which
Preferred Dividend
Treasurer
The Board of Directors of
A
No.
No.
75^
per
quarterly
(l'/%)
PITTSBURGH
CONSOLIDATION
dends
holders
stock
meeting held today, declared a quar¬
terly dividend of 75 cents per share on the
Stock of the Company, payable
on
March
18, 1955, to shareholders of
of
Preferred
March
Stock
31,
are
of
payable
record
transfer
April
March
books will
1,
7,
record
at
the close
of business
the
and
1955
1955.
remain
a
to
The
open.
a
Common
share
for
195S
of 25per share on the Com¬
Stock have been declared. Both divi¬
COAL
at
dividend
the
dividend
mon
COMPANY
on
ending
quarter
E. I'. Page, Secretary and Treasurer
banking fraternity, to¬
day's offering of $250,000,000 of
General Motors Acceptance Corp.,
debentures also promised to stand
among the most sought after.
time for the
subscription
books
underwriters
they had more
Charles E. Beachley,
the-window"
Secretury-T teasurer
February 28, 1955.
opening of
drew,
INTERNATIONAL
operation
SHOE
appeal.
at
CONSECUTIVE DIVIDEND
COMPANY
Common Stock
A
133rd DIVIDEND DECLARATION
The Board of Directors of this
today declared
pany
dend of
on
the
cash divi¬
Fifty Cents [50i)
a
share
capital stock. This cash divi¬
dend will be
to
a
com¬
paid March 31, 1955
stockholders
of
record
at
to
payable
on
per
at the
close of business March 15, 1955,
was
declared
by the Board of
Directors.
the
ANDREW W. JOHNSON
close of business March 10, 1955.
Vice-President and Treasurer
February 28, 1955
Vice President-Treasurer
for
this
17
years,
3%
a
coupon
phase
them
forded
fitting
of
folios
in
investors
af¬
opportunity
an
for
into their port¬
the
rating of
the issuer, which is the financing
unit for General
Motors
Corp.,
ranks high among investors and
the
current record-breaking ac¬
tivities of the GM car building
still
carries
for
A
quarterly dividend of $0.50
per share in cash has been
on
the
Common
Stock of C. I. T. Financial
FINANCIAL
CORPORATION
DIVIDEND NO. 131
Corporation, payable April
1, 1955, to stockholders of
record at the close of busi¬
ness
March
10,
1955.
investors
bit
of
This
of
new
John Kuhn,
Treasurer
February 24, 1955.
of
for
speculative flavor.
again by the
which greeted Union Oil
$60,000,000 of
convertible deben¬
Carrying
a
3%
coupon
successful
the
from
full
a
last
and
brought out at par, the issue was
bid of
The
year.
also for 3%s, was
third
a
offer¬
group
will
Proceeds
$38,000,000
for
New
funds
Capital Pool
operations
have
factor in the
some
But the real
outlet has devel¬
within
the
promises
to
oped
and
last
of
cently
have
in
years
apace.
told the
were
institutions
these
WANTED
lock
Engine
1920's.
Pine
Stillman
Call
or
such
of
excess
the
at
volume
about $1.5
culated
unions
labor
put
billion,
$11.5
at
annual
year
.
covering
corporations, and
of
several
potential
the
a
of
figure presented,
funds
increment
the
with
running
billion. This source cal¬
that
about
$400 million
a
equities with the
moving into government
corporate debt securities.
into
goes
balance
Not
While
Model
Issued
Coffin &
Burr,
in
70
Street, New York City 5,
WHitehall 3-9313.
Glatfelter
cessful
Co.
is
teday
offering holders of its
stock
common
rights to subscribe
for an additional 125,000 shares of
its common stock, $10 par value,
the basis of
1.76
March
1955.
price is $37
expire
A
share; for
new
held
The
of
record
subscription
share, and rights
per
3:30
at
March
one
shares
1,
(EST)
p.m.
on
16, 1955.
headed
group
Corp.
The
by The First
purchase any
will
unsubscribed
shares.
First
Boston
Corp.
also
heads another group
offering pub¬
licly today 40,000 shares of P. H.
Glatfelter
Co.
value,
par
4%%
cumulative
at a price
of $50
per
share.
The preferred stock is callable
initially at $52 V4 per share.
*
Proceeds from today's offerings
and from the
private placement of
will be used to finance completion
the
of
ment
company's plant develop¬
expected to cost
program
approximately $12,500,000.
Major
item will be the addition of
a
new
machine in a
new
building with finishing and
loading facilities.
high
speed
paper
week
flotation
of
brought
suc¬
issue
an
Slock at $1
of
a
Share
S. D. Fuller & Co. and
Brothers
Vermilye
publicly
are
offering
298,400 shares of British
Western
America
common
stock
at
The
Uranium
$1
poration, will
Corp.
share.
per
company,
a
Colorado
cor¬
the proceeds of
the sale for the purchase of prop¬
erties, claims and leases and for
further
One-Way Street
a
this
Bankers Offer Uranium
use
exploration
and
drilling
of properties and leases now held.
Organized to engage initially in
acquisition, exploration, min¬
ing and operation of uranium and
$25,000,000 of 25-year 3Y4% sink¬
the
ing fund debentures for May Dept.
on a 3.25% yield basis,
other
it
states of
Stores Co.
was
to
not
quite
as
kind to
sev¬
recently brought
market.
who
Bankers
102.127
Calvin Bul¬
H.
re¬
mounting
been
securities reaching market.
new
bidders
that the moneys in the
hands
rate
few
continue
Mortgage bankers
other day
a
issue market for
took
down
the
$17,000,000 of Texas Electric Serv¬
ice
Co., 3Y4S and reoffered at
Evans
White, Weld & Co., New
$4,000,000 of first mortgage bonds
of pen¬
growing
now.
this
in
been
new
years
growth
be used to
of bank loans
construction.
financing
Investment
sion
Corp.,
preferred stock, series of 1955, $50
3.30%.
the
P.
company
100.677.
and
(4/15)
(March 3)
bid¬
of 1% above
the
which
at
eral other issues
tures.
Co.'s
Electric
winning syndicate plans to
the bonds at a price of
101.488 for an indicated yield of
a
proved
20-year
by
Lynch,
Underwritten by
Firsl Boston Group
each
Electric
&
&
Gas
bonds
magic
flair
California's
transfer books will not close.
C.
bit
a
The
Checks will be mailed.
Gas
runner-up,
and
added
was
response
Co.
a
with
Merrill
Glalfelter Shares
on
was
One
credit
Quick Premium
declared
on
The
instances.
many
Naturally
since
financing
the
issues
the
attraction
added
an
institutional
Oil
C.l.T.
call
a
reoffer
varied maturities undoubt¬
proved
plants played its part in sweeten¬
ing the market.
March 1, 1955
sold
and
the de¬
went out
quickly and the longer debentures
carrying a 3V2% rate and priced
at par were well-received.
edly
April 1, 1955
stockholders of record
evidently were will¬
57.
years,
evidently carried wide
The shorter-term, priced
for
par
The
quarterly dividend of 60c
share
in
balance
bentures
176™
PITTSBURGH, PA.
The rel¬
naturally
attraction.
refund
foregone conclusion.
$50,000,000 due in five
the
St. Louis
OF
premium
a
tantamount to
is
rate
ing
developed
as
owned
stores
—
Underwriter—Union Securities
when-issued
in
maturity
short
This
based
were
preliminary inquiries
in such volume
early success of the deal and
closing of the books were accepted
which
almost
COMPANY
FIRE INSURANCE
that date.
Boston
the
the
the
on
15
reported Sinclair Oil Corp.
der.
their
Segregated into two maturities,
UNION
Hydrocarbon Co.
was
the counter.
100.81, with
observations
retail
140
Underwriter
York, may be included among the
points
rate
est
"out-
that
NATIONAL
it
$50,000,000 of 32-year first and
refunding bonds, brought a top
price of 100.937 for a 3%% inter¬
an
hands.
These
March
on
New York, underwrote recent sale of Sinclair's holdings
Pacific
on
less of
or
of
of Colorado Interstate Gas Co.
Pacific
near,
convinced that
were
(Mo.)
that stockholders
will ask for
384,861 shares of Westpan stock about April 15,
1955, if it has not been able to dispose of these holdings
an
around
vestment
As the
March
on
Ranking up with the largest of
underwritings handled by the in¬
February 23, 1955
1955. Checks will be mailed.
11,
11
stock, starting at $65 and
moving up to $70 after March 1,
1970.
The shares sell
currently
186
Dividend
Inc.
the
196
Coniftion
J. T. CULLEN,
February 23, 1955
purchase
ing to pay well over the offering
price for the conversion privilege
Company
1955.
Supply Co.
announced
bids for
But buyers
Hank Note
de¬
of 25e per share on the
Capital Stock of the Com¬
pany of the par value of $12.50 per jjhare.
payable April 1, 1955, to holders of record
the
Westpan
Dec.
over
proved
dividend
a
(jointly); Kidder, Peabody & Co.;
Corp.
Gamble-Skogmo,
competi¬
atively
American
outstanding
in
for
and
on
reported commanding
DIVIDEND NO. 231
clared
vote
finance
fu¬
near
trading
LIGHTING COMPANY, INC.
was
before
THE SAFETY CAR HEATING
aand
loans
determined
be
approving a proposal to create an issue of
100,000 shares
of preferred
stock and $5,000,000 of
bonded debt, and on increasing the authorized common
stock
from
1,335,000 shares to 2,500,000 shares.
The
company may raise about $10,000,000 through the sale
of $5,000,000
preferred stock and $5,000,000 bonds to
(6/7)
bonds
be
issue
to
(probably
Pierce Fenner & Beane, New York.
of
\
12 it
will
reported company plans to issue and sell
Underwriter
ture..
bank
retire
Underwriter—To
Western Auto
Jan.
Queen Uranium Co.
was
bonds
mortgage
Proceeds—To
construction.
The First Boston
was
Virgina Electric & Power Co.
Feb.
1955).
first
and Lehman Brothers
New York.
Walker, President, announced that the
P.
construction
reported company plans to issue and sell
720,000 shares of common stock. Price—Expected to be
$2.50 per share. Underwriter—Van Alstyne, Noel & Co.,
plans to offer publicly 1,346,800
shares of capital stock through an underwriting group.
Offering—Planned for early in May.
f
nounced
Proceeds—For
30-year
authorization
SEC
sought
company
by
competitive bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc. and Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane; Equitable Se¬
curities Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
it United Gas Corp.
Feb. 24, N. C. McGowen, President, stated that com¬
pany might
be doing some debt financing, with this
year's total financing program reaching about $50,000,000 (including about $35,000,000 to $40,000,000 of com¬
mon
stock).
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan Stanley &
Co.; White, Weld & Co. and Equitable Securities Corp.
(jointly); Harriman Ripley & Co. Inc. and Goldman,
Sachs & Co. (jointly).
Machine Tool Co., Rockford, III.
F. Olson, President, said that early in
March the company plans to file a registration statement
with the SEC covering 108,885 additional shares of com¬
mon
stockholders.
to
May,
of company and of United Gas Pipe Line Co.,
subsidiary.
Underwriter—None.
a
it Sundstrand
23,
28
new
program
New York.
Feb.
stock
mon
publicly offer
announced company plans to
was
shares of common stock. Proceeds—To reduce
long-term debt and to redeem 15,000 shares of 7% pre¬
ferred stock (par $100). Underwriter—Reynolds & Co.,
262,750
Thursday, March 3, 1955
.
West Texas Utilities Co.
Feb.
$7,500,000
Broadcasting Co.
Storer
•
done
May, 1955.
.
tive bidding.
Probable bidders: Halsey, Stuart
Co.
Inc.; Union Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co.; Salomon Bros. & Hutzler;
White, Weld & Co.
borrowings made in 1954 wil require financing during
1955 of about $85,000,000. It is planned to offer publicly
about April 1 $15,000,000 of preferred stock. About $50,-
stock (par
$100). Proceeds—To prepay bank loans and for construc¬
tion program. Underwriters—To be determined by com¬
petitive bididng. Probable bidders: White, Weld & Co.
and Kidder, Peabody & Co. (jointly); Lehman Brothers;
Merrill
Lynch, Pierce, Fenner & Beane and Union
Securities Corp. (jointly); W. C. Langley & Co.; Harrimau
Ripley & Co. inc. Offering—Expected in April or
$6,000,000 oi cumulative preferred
sell
and
.
ing
a
week ago found the go¬
slow
decided
and
issue find
quotations
its
level.
put
Meantime
the
to
Free
bid
another
let
the
market
101Y4.
syndicate
at
mineral
properties
in
the
Utah, Colorado and Wy¬
oming, the company has, through
mining
contracts
and
purchase
options, interests in a substantial
number of properties in the three
states.
With the completion
the
company
shares
par
of
will
common
of this sale
have
415,400
stock,
25-cent
value, outstanding along with
150,000 common stock purchase
$10,000,000
of
The public will own
Rochester Gas & Electric 3%s at warrants.
which
offered
102.772, also decided to let
go.
72%
of
the
company.
Number 5408
fVolume 181
The Commercial and Financial Chronicle
.
1071
DIVIDEND
DIVIDEND
NOTICES
NOTICES
DIVIDEND
NOTICES
DIVIDEND
61
At
meeting
a
tors of
Corporation
DIVIDEND
A
dividend
(25c)
stock
of
81
cents
books
15,
will
Dated
at
record
Common
declared,
123
($1.75)
of
share
per
of twenty
Dividend
dollar
one
five cents ('25(f)
Common
transfer
closed.
Stock
payable April
of record
of this
at the
No.
seventy
A
close
per
share
cents
on
the
Company have been
cents
to
business
on
24,
dividend
stockholders
fifty
has
been
29,
1955,
March
of
15)55.
of
share
per
declared payable
record
at
111 Fifth Avenue
the
A
G.
GREENBURGH,
March
Treasurer.
April
the
close
at
February 23,1955
of
Secretary
business
1, *1955,
the
of
to
R.
y2%
($1.50
the
upon
American
payable
in
cash
stockholders of
on
record
cjose oC*business March" 10, 1955.
Checks will be mailed.
Dividend Notice
Hilyard, Treasurer
February 23, 1955
BERGEN,
Secretary.
February 28, 1955.
1
The
Harry L.
A.
3, N. Y.
Dividend
of
declared
Company,
March 9, 1955.
at
been
.Stock
Tobacco
CARL A. SUNDBERG
dividend
has
Preferred
11, 1955. Transfer books will not be closed.
CARL V. WISNER, JR.
J?
Secretary
quarterly
share)
a
JOHN
New York
202nd Preferred
close of business March
9, 1955.
1955, to holders
1,
of
quarterly
(50c)
five
the Preferred Stock and
on
declared,
The
Chicagoi|February 28, 1955.
31, 1955, to stockholders
of
was
187
Dividends
the close of busi¬
11955.
not
Corporation, payable
on
Preferred Dividend No.
Direc¬
29^1955, to the share¬
record
April
ness
common
of
American Phenolic Corporation
a
dividend of twelve and
payable April
twenty-five
outstanding
this
Board
today
holders of
of
the
on
March
on
No.
the
one-half cents peill share
share has today been de¬
per
clared
held
of
NOTICES
Broadway, New York 6, N. Y.
New York 8, N.Y.
February
Commercial Solvents
DIVIDEND
MIAMI COPPER COMPANY
AMERICAN LOCOMOTIVE COMPANY
30 Cfaarcb Street
NOTICES
59
A
AnacSondA
DIVIDEN|.NO.
ARUNDEL)
187
ROME CABLE
BALTIMORE
MARYLAND
■f February 24, 1955
The
Board
E. I. DU PONT DE NEMOURS & COMPANY
has
pany
dividend
($.75)
Board
of Directors
has declared
of
1955,
share
a
the
on
Series
and
ferred
Stock
87V2<
able April
record
7,
1955;
Common
terim
14,
—-
25,
the
at
Preferred
Stock
the
as
dividend
1955,
on
payable
machine and
Cents
its capital
par" value of
both
on
metals, inc.
30,
share
a
first
RATE
Secretary and Treasurer
of
25
the close of business
on
share.
the
du
the
for
this
year
check
cents
the
declared
share
per
the
on
no
corporation,
payable
on
as
and
ROME
64th
stock
and
corporation's
of
close
business
after
books
March
April
quarter
1, 1955.
PONT, 3rd, Secretary
GO
O
NORRIS,
ness
Treasurer
dividend
a
clared
West Penn
CORPORATION
Electric
on
ord
Capital Stock of
Company for the
on
April 15, 1955,
ers
of record
ness
at
to
stockhold¬
the close of busi¬
said
INTERNATIONAL MINERALS
General Offices:
20 North Wacker Drive,
Chicago 6
.
Dividend Notice,
.
A
quarterly dividend of $1.10
(on the
clared
-
per
v
.
the
on
Common
share^
of
business March
March
to
share
owners
of business
of New York
Record Date Mar. 11,1955
Thompson
1, 1955
Declared
New
York,
Quarterly Dividend of
One Dollar
1955
York,
January
($1.00)
Forty Cents (40tf)
per
Share
per
Share
Declared—Feb. 24, 1955
Record Date-Mar. 18, 1955
Secretary
27,
2,
1955
WEST PENN ELECTRIC SYSTEM
OVER
IN
t
850 OFFICES
U.
S.
Monongahela Power Company
AND CANADA
continental
The Potomac Edison Company
West Penn Power Company
Payment Date-Mar. 30, 1955
1 955
Vice President and Treasurer
DYNAMICS
Chemicals
CORPORATION
•
Potash • Plant Foods
•
Industrial Minerals
•
a
quarterly dividend
outstanding $5.50 dividend Preferred
Stock, payable April 1, 1955, to stockholders of record at the close
of business March
11, 1955,
not
previously called for redemption.
Common Dividend No. 40
The Board of Directors has declared this
day
dividend, for the first
Phosphate
company
The Board of Directors has declared this
day
of $1.37p2 per share on the
A. R. Cahill
GENE RAL
baking
Preferred Dividend No. 65
$5.00 Par Value Common Stock
February 23, 1955.
New
March
Secretary
52 nd Consecutive Regular
of record at the close
Allen D. Marshall,
PER SHARE
Payable March 31, 1955
$%; Cumulative Preferred Stock
Stock of the
10,
the
--QU^RTFRLY DIVIDENDS
Co mrriorf Stock outstanding
Corporation payable March
Guaranty Trust Company
30^
rec¬
1955.
close
★
STUART K. BARNES, Secretary
.
share
& CHEMICAL CORPORATION
prior to the stock split-up) has been de¬
March 15, 1955.
per
William E.
Qommon Stock held
quarter
ending'March 31, 1955, payable'.,
at
15,
I
record date.
on
on
COMMON STOCK
31, 1955 to stockholders of
F|bruary 23, 1955, at
sharj of Common Stock
for each share of
the
at
The dividend is payable March
March 10,
of record
Stock
of
$.25
split-up has been
payable
one
Company
Quarterly Dividend
quarterly cash dividend
Common
own|rs of record at the
the rate of
this
a
the
rate
1955 to share
day declared
per
Secretary
(Incorporated)
close of business
the
on
the
quarter
of the
year
a
regular quarterly
1955, of 45tf
outstanding Common Stock, payable April
Amino Products
1,
per
share
1955,
Pork
Avenue,
New
York
22,
New
to
holders
York
of
stock
445
the close of business
at
record
of
such
March 11, 1955.
The stock transfer books will
not
DIVIDEND
be closed.
NOTICE
WILLIAM FISHER
TREASURER
The
■M
following dividends
have
been
declared
February 21, 1955
by the
Board of Directors:
Preferred Stock
A regular
quarterly dividend
manufacturing
of
$1.0625 per share on the
$4.25 Cumulative Preferred
company, inc.
Stock, payable April 1, 1955
to
stockholders of record at
the
close
March
of
business
DIVIDEND
on
15, 1955.
f
mon
A
BWidend No.
Stock, payable April 1,
1955 to stockholders of
rec¬
Common
ord at the close of business
on
March
1955, to
15, 1955.
closed.
Checks
will
^ ^
M g
lOEB,
w5S.
President
DIVIDEND
twenty-five cents ($.25)
are
Brooklyn, N.Y.
per
share
on
per
share and
an
quarterly dividend
extra dividend of fen cents
the Capital Stock of the
company.
Both dividends
payable April 4, 1955 to stockholders of record March 14, 1955.
February 23, 1955
bk-.
NOTICE
The Board of Directors has
today declared the regular
of
($.10)
be
mailed.
WM. J. WILLIAMS
Vice-President & Secretary
^
stockho ers
Transfer books will not be
CORPORATION
($-40)
the
payable AprU 1,
cents
Forty
V^
Stock has bee
Penn-Texas
NO. 10°
Common Stock
A
quarterly dividend of
$0.20 per share on the Com¬
busi¬
10, 1955.
The Board of Directors has de¬
Corporation,
Eighty (80) Cents
at the close of
March
THE
BENEFICIAL
103rd CONSECUTIVE QUARTERLY
theCSmmon Stock of the
on
The Board of Directors has this
on
for
Rome, N. Y., February 25, 1955
LOAN
V
authorized to be effected in the form of
dend of
64
1955.
H. T. McMeekin,
Split-up Notice
A two-for-one stock
share
on
Gerard A. Weiss,
by
</>
/4||V\
Stock
quarterly divi¬
of record
ers
Secretary.
on
a
No.
1955—to
T"
York, March 2, 1955.
declared
has
Dividend
share on the Common
Capital Stock of the Corporation,
payable March 31, 1955, to hold¬
CASH DIVIDEND
New
Corporation
35 cents per
of
made
31,
Dividend
The Board of Directors of Rome
Cable
distribu¬
be
YORK
Consecutive
consecutive
the
at
15, 1955.
MARSHALL G.
CENTS
NEW
out¬
1955, to the stcckholders of record
the
•
thirty-
value
issued
on
the
day
quarterly
a
par
increased
first
will
March
of
this
share owners of record March
15,
P. S.
been
dividend
A
tion
quarterly in¬
March
of
has
THIRTY-FIVE CENTS per
to
for 1955, payable March
stockholders of record at
to
has
from TWENTY-FIVE
Broadway, New York 4, N. Y.
April
on
five
on
C. EARLE MORAN
Directors
(February 25,. 1955)
1,
Dividend
of
Corporation
standing,
stockholders of record
jbf business on
close
THE QUARTERLY DIVIDEND
pay¬
Board
dividend
$50
March
The
Arundel
March 7, 1955v?-
Pre¬
stockholders
business
$1.25
also
the
on
$3.50 Series,
1955, to
close of
American
a
Stock—$4.50
share
a
declared
Seventy-five
shaftj
the
to
the
at
this
day regular quarterly dividends of $1.12Vi
of
share,
per
Wilmington, Del., February 21, 1955
tod&y
per
stock
s.Fwort
The
>g{ Directors of
Anaconda Copper Mining Com¬
L D. SILBERSTEIN, President
The Commercial and Financial Chronicle
..
Thursday, March 3, 1955
.
1072
€0
hibitions
BUSINESS BUZZ
imposed
Under such
Washington
a
NY. STOCK EXCHANGE
g~J
against
action"
certed
vided
WASHINGTON, D.C.—There
one
capita personal income tax
cut, and that sidelight has broad
implications lor the future.
That sidelight is the indica¬
tion it throws of the position
of the hard core conservative
gentlemen
Those
mittee.
are
one
such
Since
$20
encroach
is
always
the
call,
as
on
and
power
which Democratic state
had
machines
ennoblement
the
or
enhancement
and
of organized labor.
of the power
These
FEPC
gentlemen are the
two
Chairman, Judge Howard Smith
of Virginia and his associate,
William Colmer of Mississippi.
These
two
remain
men
handful
scant
conservatives.
Together
with the four Republican mem¬
could if they
team, guarantee
two
these
bers,
all worked
as a
tracks any of
expensive and
to stop dead in its
beautifully
the
which
tion
might
Eisenhower
either President
the
of
"hitched" with
would stay
cans
Republi¬
the
If
House.
or
leadership
Democratic
top
the
legisla¬
come
from
"liberal"
far-reaching
clear
to
the
them
to
far
pretty piece of legislation
a
would
six,
be
not
tie,
a
so
at
Now
84th
vote
way
than six to
more
rule.
no
of the
Congress, Judge Smith and
Bill
Colmer
made
have
believed
are
this
known
to
possi¬
bility to such persons as would
point it out to the four Repub¬
there
Whether
licans.
rect
negotiation
two
Democrats
di¬
was
the
between
and
the
four
Republicans was not made
known; at any rate it is not
important for the two Demo¬
crats think they know where
the Republicans will stand —
they won't stay hitched to stop
cockeyed
legislation
when
it
to the Eisenhower brand.
comes
rule
extension
essary"
rates of tax
the
rule
in
the
instant
case
these
two made possible a rule which
the
to
was
complete
satisfac¬
tion of the Democratic Speaker.
In
the first
place the rule
did
in
tax
fact let
cut
come
for
up
the $20
dear
so
a
to
per
cap
That
is
something which
missed
two
in
the
could
was generally
dispatches. The
have
stopped the
Judge
for
the
tested
leadership
by
call
roll
$20
both
per
they
had
solid
would
stay
ter
it
they
become
so
because they have
convinced
cannot count upon
lican
colleagues
Committee
eyed
to
they
their Repub¬
on
stop
legislation
that
the
Rules
any
cock¬
which
may
originate in the White House.
oppose
quar¬
could
have
pro¬
to,
or
and
Social
start
and
However,
Won't Open Up
The fact that these conserva¬
does
case
that
not
the instant
on
however,
mean,
they will as unquestioned
of principle back Rayburn
men
up
least
Now
inconsiderable way.
no
the
of the $20
purpose
thing
to give good
was
a
chance to get
the record for the same; also
it was to poke a little hole into
on
the
grand
tion,
by
Eisenhower reputa¬
making believe the
Democrats
duction
all
are
the
for
for
tax
peepul.
project started out strictly
baby
of the
Senate
things
and
leaders
none
of
one
the
of
Congress
country still
hower
is
a
know very
paid
indulgence
The
its
enforce
tive
trade
regularly
the
per-
thinking
up
borrowers
Next,
the
could
board
laws
invest.
would
limit
retirement of Federal capital to
purchases
new
rowers
as
they
made
make anyway as
bor¬
by
required to
are
condition to
a
accommodation.
skip retiring the Federal capital
intermediate
the
of
practices
on
Farm
force
ministration.
Finally,
the
board
that
the
Federal
ally
be
not
proposed"
capital
retired,
actu- "
be ~
but
ther
In
and report
its enforcement to
hand, the agree¬
bring
or
the
Credit Ad¬
restric¬
UN.
On the other
credit
on
country to
upon
about
any
use
ment"
be
later.
other
words,
of Federal
painless
It remains
and
to
be
the
"retire¬
capital would
non-existent^,/
seen
what
the
Eisenhower Administration and
Congress will say
about
this
brilliant
scheme.
(This column is intended to
re¬
transgressed
do¬
flect the "behind the scene" inter¬
away
with restrictive trade
practices.
Eisenhower
Democrats
Furthermore, it
pretation from the nation's Capital
and may or may not coincide with
world-wide
is that
those
ing
limits.
would
This is deplored by some, es¬
so
countries
dream-world
the
drop
for
the
"Chronicle's"
own
views.)
specifically exempt state
trading,
pecially since Ike has as a re¬
standards
that the totalitarian
would
have
no
in-
TRADING MARKETS
Riverside Cement B
The
as
a
Morgan
Engineering
Seneca Falls Machine Co.
the
National Co.
clearly
kind
W. L. Maxson Co.
of
Carl Marks & Ho. Inc.
eye
of
even
FOREIGN
the
SECURITIES
SO BROAD STREET
TEL:
if
thinks Eisen¬
•
HANOVER 2-0050
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
LERNER S CO.
Investment
10 Post Office
#
«
'A I'
\
.
*
—Y~'"
"
\
• "•••
;
—
Securities
Square, Boston 9, Mass.
Telephone
"
budget-balancer,
well that Eisenhower
-
ira
kept in hand for possible fur¬
ment would not in any way en¬
at
capital
earnings
which
one
new
agreement
the
would require every
a
informal rules
President.
99%
On the
create-a
the
an easy way
of embarrassing the
Furthermore,
would
came
re¬
of
political
appeal and offered
members
it
those
had
scheme.
a
of
of
in the draft stage.
now
set
As
political game, for self-
among
to
class
wards
originally
was
However,
that
of
righteousness.
sult
with
it
up
hand,
Democratic
House
leadership,
amount
the
Council
ment is
mited under the
of
*
The Farm Credit Board
flow of world trade. The agree¬
leadership
credit /
cooperatives.
Economic
is drafting
feeling is that
by getting as heated
table defeat. There are limits to
hower in
so
production
and
corporations, and the banks for
just too hard
agreement to end "restrictive
practices" within countries
which interfere with the free
pretty high price for the inevi¬
the
go
banks,
These
credit
as
matter of principle.
Democratic
everything; they will not
far as to do violence to
their convictions, but they will
assist materially in making life
unhappy for Dwight D. Eisen¬
up on
intermediate
the
banks
an
he did toward the House
as
institutions.
in these
are
that
trade
the
Eisenhower
tives backed Sam
which
fact
the
Nations
United
to,
has never been able
desirous of getting next
phrey
light
to
S.
U.
the
of
the
oppose as a
the
-
Third, the board proposed to
Com¬
of
Chamber
the
brought
Hum¬
George
indignation.
from
*
Second, the committee
collar.
is
merce
hot
personally
and
the
under
left Sam Rayburn sputtering in
it
cooperatives.
as
Plans
It
as
people
like
Congressmen
himself.
Nobody
expected
Eisenhower to do anything but
came,
stopped
became
and they did not de¬
to
whatever
and
Messrs.
at
officially
the latter
hitched
from
if
from
word
gimmick was
Humphrey
Eisenhower they got both
thrown
ital
credit
Agreement On
Restrictive Trade Practices
UN
this
when
Now
the
But
of politics.
understand this game
Lacks Aplomb
per¬
against
Republicans that
to
so,
their
voted
little
at¬
the
on
gimmick.
cap
had
the
intentions about the budget,
Democrats ask.
best
prolonged junket to
Latin Brothers, and
a
implacable
enmity of such
a
smart and
potent gent as Sam Rayburn,
although they know it is just
that
Eisenhower
just
doesn't
honest
the
Bill
best
that
convictions
sonal
his
about
holy
and
is
fact
the
be
•
their
Smith
doing
were
consulted.
do
Eisenhower
on
then got himself the
why
should
so
self-right-
therefore
So
hate
who
Democrats
ing
be
must
observers
to
grand gesture to
a
Nixon, to send him pack¬
Dick
personal.
eously
That
relief
tax
sense
in
Ike,
appease
and that
It doesn't
moderates."
much
make
that
(the
have
so
both
of
the
of
form
South.
thing dead if they had desired
sire to do
a
phrey keeps on his farm down
Colmer
would
bill
Democratic
long as mem¬
parties are "pro¬
Republicans,
gressive
practically com¬
been effective in 1956)
of
one
is
Eisenhower
the Democrats as well as of
Furthermore,
limit.
debt
the
outside
were,
mitted to tax relief in 1956
those fine horses George Hum¬
Rayburn
vote.
to
be
bers
it
and
As
as
budget
of being the President of
the
pose
as
bringing
necessary
would
tail
second
as
was
exemption
associations of the Federal cap¬
only to limit the size of
the
deficit
while
engaging in
extra-marital Federal finance,
means
higher
actually
few hundred
a
creating them as an independent agency, Congress re¬
quired the Farm Credit Board
to submit a plan for the retire¬
ment by borrowing cooperative
"Oh, this business wasn't hard for me to learn—I've
been traveling on the subway for years!"
separate vote, however,
a
little Democrats
So
of
De¬
FCA
So in
by
in other fields.
of
means
about
per cap
Worked for Rayburn
tax
income tax cut as a
also voting a "nec¬
of
means
the
Agriculture.
capital, and
they also enjoy Federal income
position of not in fact
forcing the House to take this
personal
of
bureau
a
institutions have
roll
granted
as
independent agency in¬
of
millions of Federal
mo¬
separate
a
the
Administra¬
Credit
partment of
non¬
this
an
stead
the
nonsense
the beginning
of
with
Congress,
Farm
tion
the $20 per cap tax
the
So
a
ing
cap
per
1953
the
Judge Smith put the Democrats
in
a
of
thorough-go¬
of
In
cut.
baili¬
their
in
the
like
$20
effect
The
sense.
South
wicks,
the
out
take
-f
approval of the President, made
(as he did) to rise and make a
motion to recommit the bill to
tion
upon
as
"separate vote." Rep. Dan
the top Re¬
of the
social life
the
affect
to
prppose
threatened
or
council
Money Back
publican
on
the
Ways and
Means Committee, would have
been obliged at the final stage
against such things as
this
on
ago.
How to Get Government
morning, that even with¬
a
one-world-
of
instance
representative
Reed of New York,
conservatives
affected
was
how¬
reports,
to
several years
will rise
out
They are not
Harry Truman used to
which
it
thing,
cap
each
conservatives
all fiscal and
occasional
per
certain as that the sun
Republicans on the RuLes
Committee. However, there are
two conservative Democrats on
that
committee who are
four
•
the State Department does
now look
kindly upon this
weird
things
been
about al- >
ism, and will buck the same.
However, the idea was origi¬
nated
by a former American
in
is always the case
as
the
,
not
there would have
a
separate vote without
a
provision in the rule.
Eisenhower opposed the
these
Yet
opportunity to make in¬
an
According
year.
Now
not
ever,
a
poration and excise taxation for
convictions, to hamstring one
Dwight D. Eisenhower.
There are eight Democrats to
who vote
rider to
a
is
could
law.
"necessary" bill, a bill to con¬
the higher rates of cor¬
they can possibly go, consistent
with their definite conservative
just
as
to
prices
leged discrimination under U. S.
tinue
likely, in a word, to string along
Speaker Rayburn as far as
economic matters.
attached
*
numerable complaints
happened from time im¬
has
was
-with
thorough-going
on
practically
ish
in
memorial in Congress, the thing;
Com¬
Rules
the
on
as
alibi
an
and
with.
interfered
be
"con¬
agreement could give the Brit¬
advance
to
Eisenhower's unsportsman¬
like bleat of "unfair" because.,
out
make
per
Democrats
"separate vote" on
a
The pur¬
of this provision was to
pose
the $20
passing
narrowly
end
for
$20 per cap thing.
the
major sidelight to the
fracas in the House last week¬
is
true
business
these
that
common,
re¬
no
be
where
by
markets
control
get
also
would
in .Britain,
that
M. "
could
S.
States,
United
the
by
It
dress.
raise
discriminated
being
U.
the
but
y /~)7f
JLJLI l/Vi/
Nation'* Capital
from the
TRADING FLOOR
.
A
B«5ww!-tf«-Scene Interpretation*
•
•
about
ned
agreement the
an
continually
could
Reds
m
them
upon
whatever.
HUbbard 2-1990
Teletype
BS 69
@FedFRASER