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7UNIVtKi><TY
ofm,chigan
television and electronics industry featured today
MAR
Ike Commercial
Reg. U. S
Number 5304
179
New York 7, N. Y.,
5 1954
msuummm
an
Chronicle
Financial
Volume
-
Pat. Office
Price 40
Thursday, March 4, 1954
Cents
a
Copy
EDITORIAL
Television:
We See
As
In almost
depression
pathological fear of
an
In
early postwar
which, in the event,
—
never
Director
even
about
the wisdom
this enactment is to
or
other which is
an
or
betray
a
essential
Mr. Just describes electronic developments in the field
tion
practicality of
lack of something
ingredient of good
of paternalism and
It is my confirmed
nation that his Administration has
I
sense
Nevertheless,
electronic
new
companies, the
that
will
be
equipment
en¬
new
the
A little later on, I am
purposes.
are
we
on
field of medicine.
First,
ference
THIS
of New
by Mr. Mansfield before the Eastern
York
Society of Security
shots
ISSUE—Candid
ment is
Regional
of the world
shadowgraph.
AND
PHILADELPHIA
on
page
MUNICIPAL
York
MABON & CO.
Bell
System
Teletype
NY
1-2152
WALL
99
STREET
Exchange
Active
I
Canadian
Liquid
DIRECT
Established 1832
BRIDGEPORT
PERTH
AMBOY
Bond Department
Exchanges
other
CHASE
THE
Hollywood,
•
Detroit
Beach
Fla.
•
•
•
Pittsburgh
Coral Gables
Geneva, Switzerland
NATIONAL
BANK
OF NEW YORK
OP THI CTTY
Brokers
Puget Sound
BONDS & STOCKS
Orders
Executed
On
Analysis
All
WIRES TO
request
DEPARTMENT
MONTREAL AND TORONTO
NEW YORK STOCK EXCHANGE
BROADWAY
NEW
Light Co.
upon
»
PoMcnox Securities
Orporatioti
Goodbody & Co.
115
Power &
Exchanges At Regular Rates
MEMBERS
DIgby 4-2727
and
Teletype NY 1-2270
American Stock Exchange
Exp orts—lm ports—Futures
Banks
CANADIAN
Members N. Y. Stock Exchange
—
Trade
Exchange
Maintained
Markets
SECURITIES
sugar
Refined
of
N. Y. Cotton Exchange Bldg.
Chicago
Teletype: NY 1-708
Dealers,
Commission
—
Inc.
Exchange,
Cotton
CANADIAN
50 BROADWAY
Raw
30
Amsterdam, Holland
T.LWatson&Co.
NEW YORK 4, N. Y.
page
Bonds
Exchange
Orleans
Miami
To
NEW YORK 5, N. Y.
on
NEW YORK 4, N. Y.
OF NEW YORK
Net
LAMBORN & CO., Inc.
your
Municipal
Exchange
Stock
Cotton
Board
Chicago
Bond Dept.
see
fluorscope
1856
Stock
York
and
RE 2-2820
to
Members
New
THE NATIONAL CITY BANK
Continued
H. Hentz & Co.
New
Corporate & Foreign Bonds
Broadway, N. Y. 6
able
State and
American
BONDS
Members N. Y. and Amer. Stock Exchanges
is
electronic
appear
31.
New
Sixty Years of Brokerage Service
new
of
Dinner
Mid-Winter
Annual
OF
Section starting
STATE
physician
The
■
MARKETS
CALL
your
Con¬
Preferred and Common Stocks
115
which
on
City.
at the
taken
leading trade publication
This pieoe of equip¬
a
designed to replace the conventional fluoroscopic
screen
Commodity
parts
Recently,
heralded the electronic fluoroscope.
43
Analysts, New York
ASSOCIATION
INVESTMENT TRADERS
page
Paul A. Just
known
was
Hardly a week goes by that does not witness
development of some new electronic device in the
X-ray
address
counters
heretofore.
the
complete agreement
Continued
•An
and
system about which little
going to dissect the electronics
should have
Detectors
in existence that reveal and
now
accurately many physiological
and chemical changes in the human
F. W. Mansfield
potential for each separate phase of the industry.
however, I think
body, for producing arti¬
chart
Complete Brokerage Service
30BROADST^N.Y.C
that
great
a
science.
damage to the brain or lungs,
giving internal treatment with
artificially
generated
ultra - violet
rays, and for many other beneficial
industry into its integral parts, and try to predict the
U. S. Government—Municipal,
State and Revenue Bonds
Correspondents in all
presents
medical
them.
say
for
compo¬
home, and to that most ubiqui¬
characters, John Q. Public.
Founded 1824
All
to
ing
for
found
and
tous of all
Trust Company
Complete corporate and
personal trust facilities
safe
dazzling
far, electronic devices have
developed for seeing through
the human
nents, the increased strength which
electronics will put in our national
defense, and the greater benefits it
will
bring to industry, commerce,
40
ONE
is
in indus¬
as
the
ficial fever, for locating and diagnos¬
of
applications
IN
well
Thus
Established
ON
in
factor
new
it
electronics
today
that its potential
limitless from the
In the Pictorial
ALL
difficult to evaluate
it
makes
been
trance
President, was the possibility of a serious
depression with widespread unemployment, and
the behavior of the professional element in the
&
as
already in the industry and the
the
Chemical
In medicine
new products and dol¬
lar sales, the expansion of companies
opinion that
leading, perhaps the paramount, hazard of the
Republican regime during this term of office of
the
the field of medicine.
standpoint of
the
PICTURES
mean
for growth appears
tor Taft is known to have been of the
page
technical
very
of television in medical instruc¬
use
try, transportation and communications,
rapidity of electronic developments
of electronics,
use the word
necessarily
ties, but I do
at his command. The late Sena¬
on
not
growth
"growth" in the
permitting any serious deterioration in -the
state of business, and that to prevent such a de¬
velopment he would, if necessary, make use of
Continued
do
the
Reveals
its
Few more important contributions are being made
by the science of electronics to human welfare than in
that analysts apply to certain securi¬
intention
no
opinion that electronics is the fast¬
major industries. In fact,
potential of electronics has been described as the
world's most promising technological revolution. When I
of
and
complementary application, known as
"telegriosis," which uses facsimile equipment for trans¬
mitting X-ray pictures.
Reports $1 billion as value of
electronic equipment in use by medical profession.
the
speak
contributions that elec¬
making in the diagnosis and treatment of
is
human ills.
Reveals sales of electronic
est growing of all the world's
of
Bank
tronics
the
All this was painfully evident in the
political
campaigns of 1952, in which not only the Fair
Dealers (whose attitude on the subject was to be
taken for granted) but the Republican
high com¬
mand, including even the Presidential candidate
himself, never tired of expressing unending de¬
votion to the principles of the 1946 act.
Repeated¬
ly since that time the President has assured the
resources
of medicine and the important
products in 1953 totaled $4,600,000,000, with prospects
of increase in coming years. Calls electronics $8 billion
industry, with likelihood of reaching $12 billion by 1960.
citizenship in this modern age
slavish dependence upon government.
all the
Television Shares Management Corporation
ment and national defense.
be¬
country. According to the views, or perhaps better
the emotions, of a great many, to
express any
doubt
Executive Vice-President,
Picturing electronics as "the fastest growing of the
world's major industries," Mr. Mansfield discusses its
present status and potentials for the years ahead. Lists
as two major fields within electronics
industry, entertain¬
part and parcel of the political mores of this
come
By PAUL A. JUST
of Sales Research,
Sylvania Electric Products, Inc.
signed in 1946 an act (Employment Act of 1946)
which as usually interpreted
places upon the
Federal Government the responsibility for pre¬
venting any serious business recession in the fu¬
now
Billion Dollar Market
By FRANK W. MANSFIELD*
/
threatened—Congress passed and the President
ture. The basic tenets of that law have
Medical Electronics—A
Major Factor
Electronics Industry
YORK
i
1 NORTH
LA SALLE ST.
CHICAGO
40 Exchange Place,
New York b, N. Y.
IRA HAUPT&CO.
Members
and
New
Broadway, N. Y. 6
WOrth 4-6000
Teletype NY 1-702-3
WHltehall 4-8161
Boston
York Stock Exchange
other Principal Exchanges
111
Teletype NY 1-2708
Telephone:
Enterprise 1820
2
(978)
The Commercial and. Financial
Chronicle
We position and
The
trade in
American Marietta
American Tel.
&
Tel.
Arizona Public Service
Central Indiana Gas
Central
Public
participate and give their
/
Utility
they to be regarded,
are
New York
Delhi Oil
Metal & Thermit
Dec.
A
own.
to
trend,
1920
of
The
Broadway, New York 5
Teletype NY 1-583
is
last
ating
lic
worth
J.
A.
Cortewr
stations,
power
indus¬
trial plants and marine service.
also
produces
household
Since 1917
largest
done
units
the
Tel. REctor 2-7815
the
in
steam
formed
and
produce
other
Commonwealth Natural Gas
Company
Dan River Mills
country.
decade
is
assure
well
the
Lynchburg, Va.
In
design
for the
generating
with
commort
in
engaged
it
for
is
supplying
the
second
com¬
atomic
submarine, the "Sea Wolf."
Looking ahead
many
it is possible
come,
the
LD 33
to
year
equipment
companies
that
U.
S.
Navy
to
likely that
or
will
its
convert
development might take place,
but
it
would
be
operation
an
of
enormous
very
significance and- would
likely mean a large volume
of contracts for the
company. Ap¬
of atomic
energy will
Your
plication
RED
probably be more .rapid in the
Navy than in commercial power
plants. The company has not only
long
supplied steam generating
equipment for the Navy, but has
also pioneered in
new
develop¬
CROSS
ments
must carry on
I
which
ended
per
in
I. G. FARBEN
Navy
has
in
Sept.
share
the
30,
as
12
1953
months
were
$8.07
compared with $5.72
preceding 12 months. Full
earnings for 1953 are esti¬
mated at $7 to $7.50 as
compared
with
$6.15
for
1952.
Average
earnings
in
the
four
years
1949-
52, since the merger with Super¬
Co., were $7.17 per share.
At a recent price of 54
(New York
heater
GERMAN
Stock
INTERNAL SECURITIES
Exchange)
dividend
Since
of
the
late
1950,
There
Bought—Sold—Quoted
Members
New
York
Stock
Exchange
25 Broad St., New York 4, N. Y.
Flaw: HAwwer 2-9766
Tele NY 1-322?
current
$3.00
are
increased once,
from $2.00 to $3.00.
was
no
stock ahead of
(%P£nheimei &
the
yields 5.6%.
merger,
the
regular
dividend rate
in
Rare
about
and
the
recently
opinion,
for
cured
is
bonds
or
slightly
preferred
more
investor
an
buy
stock of
a
i
in
is
margins
profit
under
an
the
NY 1-1557
Birmingham, Ala.
Mobile, Ala.
Direct
wires
to
quarters
and
much so,
so
—
in
company's
for
our
on
or
write
current
publications
Japanese securities
Yamaichi
profit
that
making
can
Securities Co., Ltd.
some
appears
Established
Home
year.
for
of
Japan
Call
ef¬
were
the
1953
last
three
111
conclu¬
prove
Of lice
Brokei's
&
Tokyo
and
to
is
definitely
Bro2dwry,N.Y.6 COrtlandt7-5680
From
power.
deficit
a
of
13c
in
have
improved
in
each
We offer 67,598 Shares
ROCKHILL
consecu¬
PRODUCTIONS, INC.
tive quarter—viz.
>•; <:v.
240
$2 Per Share
in June quarter
310--—^
in Sept. quarter
350
Send for
(esti.)____in Dec. quarter
Offering Circular
BATKIN &
against 260 for
as
quarter of
available
ings! of
now
this
against
1.
Komano.f
the
and
progresses
place.
*
Crown Cork & Seal is the lead¬
ing producer
metal
of
crown
closures.
supplies
about
market.
Crown
half
As
of
Cork
such
the
U.
also
it
S.
ranks
ranked
a
only by American Can
Continental Can. The output
Cork &
cross-section
industry
of
Seal
is sold
vital
to
sales
—
its
even
ability
to
maintain
its
when general economic
conditions decline.
From
more
a
price of 31 in 1946 and
recently from 22 in 1951, the
common
stock of
year
low.
precipitous
decline
in
common
a
for
reason
drop
profits
in
was
the
from
1951
as
Dealers, Inc.
Street, New York 4
*
Tel. WHitehall 3-3388
t
;■
a year ago;-
quarter of 1953
demon¬
earnings,
muca
200
as
it
is
share
per
against
as
payment of 150 made in Decem¬
1953.
(The
first
second quarter of
In
.
view
of
somewhat of
stock
at
of
the
Crown
Coik
is
the
see
still
price
it
cf
earnings
selling
of
12%.
becomes
worthwhile
price of the stock is
rise
ap¬
in
the
now
reasonable
a
expectation. In each of the last 10
Crown Cork has sold above
years,
15%
and
has
spent
most
of
this
sharp
with
revitalized
a
and
newborn
price
more
management
earning
in
power,
a
keeping with that
of 1951—when it sold at 22—is not
beyond the
realip of the improb¬
able.
This writer has canvassed
prac¬
tically the entire list
of stocks
is
difficult,
find
a
if not
listed company which will
show such percentage
$.26
a
earnings
in
1954
were
two factors:
Government Price Controls
which placed price
ceilings on the
and
1952
as s
will
increase in
against
as
be
1953
shown
N. Q. B.
on
impossible, to
a
the 'first
SAVING6
its
price range in the 'twenties. Now,
$2.54
to
IN
the sharply improving
as
parent,-a
pVJR
the
factors,
mystery to
depressed
Surely,
trend
theste
a
since
1952.)
the
into
(1)
earn¬
little above its 10-/
the New York Stock
Exchange. It
The
share
a
Crown Cork has
been depressed to where it is
selling only
of
American
namely, the beverage,
food, drug and paint industries. As
such, Crown Cork has demon¬
strated
30 Broad
cans
containers—being out¬
Crown
*as
and
caps
third among the producers of
and metal
and
Securities
first
share
this
will be resumed in 1954
ber,
sharp
improvement
in
this
company begins to become better
known, a strong advance in the
price of this security could readily
other
see
per
with
revival
ticns of
reasonably be said
can
opportunity will not be
for very much
longer. For
earnings
take
should
400
'
Member: National Association
of
expected that quarterly distribu%
this
1954
1952. The
ddficit of 130
a
strated
writer's
at hand
as
1954
about
Concurrent
sell¬
opinion it
that
ex¬
of
Crown Cork &
Seal
are
pected to be in the vicinity of 770
This unusual
CO.
*
Thus, earnings for 1953
a
common
Branches
Bankers
the
on
the first quarter of 1953, earnings
opportunity is
currently
stock
48
Investment
its former earning
recover
or
10-year low.
the
18^7
—
sively that Crown has turned the
a
in
;
Opportunities
se¬
price
•
of
offices
resulting improve¬
result
striking
distance
branch
our
Investment
undertaken.
was
a
from
The
1,000,000 shares of common out¬
following year. Prima¬
standing. There is a term loan ef» rily responsible foF this- profit de¬
$10 million, which was made for
cline
from
1951
addition,
HAnover 2-0700
thorough
a
efficiency
likely this
with-,
than
plant expansion; repayments com¬
mence June
30, 1954 and the term
ends Dec.
31, 1959. In
of
was
rigid
changes
with
in
of the
c e
stock
share
short-term bank loans,
fected
ment
yet where the
p r
addition,
the
uptrend—and
Exchange
St., New York 4, N. Y.
New Orleans, La. -
of
part
relief
In
Management
rapidly
points
Stock
largely
early
price
division
can
Seal
is
the
this
squeeze,-
KOMANOFF
indeed
and
soar¬
division
can
York
however, both
from
income
several
25 Broad
1953, with the demise of OPA,
corner
&
In
reorganization
risen
of
last year,
un¬
com¬
the up¬
resume
the
substantial
opportunity
speculator to
large nationally
known comnany where
earnings
are in a sharp
for
of
the
year
And Successor Companies
the
adopted.
Earnings
remain
year
ing at 121/2. In
years
vessels from oil to atomic
energy.
Of course, no one can tell at this
time when or to what extent such
a
of
way
com¬
atomic energy programs, the com¬
pany can reveal
little about its
activities in this field, but it is
ponents
Scott, Horner &
Mason, Inc.
last
power.
known
business
of
prices
New
Members American Stock
Exchange
operate profitably.
overcome.
and -$137
Herzfeld & Stern, New York
City
Members, New York Stock Exchange
the
world-wide.
of atomic energy in
use
electric
Company
Tele. LY 62
of
electric
-
the
are
next
was
Alabama-Tennessee Natural
will
IRVING
its
pany of a high level of operations:
A separate nuclear power division
American Furniture Company
Gas
and
some
in
known and should
Trading Markets
volume
reaction
a
Steinfr, Rouse & Co.
time
a
constantly
were
Inability of the
In
would be quite in order.
is
The expansion of
electric-gen¬
erating capacity that is anticipated
over
million
at
of these factors have been
Its
business
utilities
efficient
Its installations
BROADWAY, NEW YORK 5
of
stations
power
Exchange
Exchange
heaters.
water
located
are
most
Members
120
and
pressure
volume
with
$95
this
high- pressure, high- capacity Crown Cork
]MC PONNELL & CO.
Stock
It
vessels,
process equipment used by indus¬
try and
by municipalities and
Rights & Scrip
City.
material
rates
V' (2)
utility industry declined
has
Stern,
(Page 2)
were
current
during 1949-52
consideration
stock
&
ing.
long-term appreciation, for
participation in the expansion of
the utility industry and in
the
application of atomic energy. The
pub¬
utility
se¬
and
equip¬
Bought—Sold—Quoted
Co.—Irving
products
raw
wage
to
ward trend next year.
The
stock, in my
gener¬
ment for
Specialists in
liabilities
expects it to
pany
com¬
installs
steam
when
1.0.
The
year,
Seal
Ilerzfeld
Members
cash
Canadian
making
volume
between
changed
manufactures
and
Current
in
was
in
million,
•from the
designs,
pany
million
million
million.
good
Engineering.
Exchange
$1.9
nual sales
Combustion
Member
&
York
company's
Current backlog is about $170
million, which compares with an-'
a
reason,
New
effect),
showed
assets of $88.4 million, of
ratio 2.2 to
and
with
Corporation
Cork
Komanoff,
in
$13.9
$39.6
appears
in
Crown
prime rate of
sheet, as of
(when the above
1952
curities.
I
stock
be
the
balance
were
which
long-term bull
New York Hanseatic
Stock
31,
loans
move-
that
York
latest
and
ments of their
Stromberg Carlson
American
The
current
bear
Morris Plan, Pfd.
New
is
dispute that individual issues and
groups have been in major bull or
Investors Diversified Services 'A'
BArclay 7-5660
credit
arrangement,
$4.5 million;, interest on
Whether the stock averages are
in a bull or bear trend, there is no
Rights & Common
120
million
3%.
Combustion Engineering
El Paso Electric
Stock
City
Louisiana Securities
Engineering Co. — A.
Cortese, Market Analyst, A.
Kidder & Co., New
York
City. (Page 2)
J.
the latter
Members, New York Stock Exchange
Alabama &
M.
amount to
at
Week's
Participants and
Combustion
to
Thursday, March 4, 1954
.
Their Selections
he, nor
sell the securities discussed.)
to
This
*
Forum
particular security
a
intended
not
are
$11
Market Analyst, A. M. Kidder & Co.,
Rights & Common
Established
offer
as an
A. J. CORTESE
Citizens Utilities
Associate
for favoring
reasons
(The articles contained in this forum
Central Vermont Public Service
American
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
.
.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocks
in
1
Crown
a
stock
half
of
Cork
Seal.
Yet
selling for little
what
Surely, such
not go
&
it
an
sold
here
more
for
in
is
1951.
opportunity will
begging for long.
POLDER
ON
REQUEST
than
National Quotation Bureao
Incorporated
46 Front Street
"
New York 4, N-Y.
Volume 179
Number 5304
.
The Commercial and Financial Chronicle
.
.
Television's Inherent
~
(979)
Vitality
By COURTNAY PITT*
IN D E X
Vice-President, Finance, Philco Corporation
Railroads and
Pointing out television, as in other appliance industries, needs;
only production of fine product, but also creation of a
demand for it through merchandising, Mr. Pitt predicts, despite
Investment
not
statistics indicate.
Sees
The
television, and ..1
says companies which overproduced are now clearing their
inventories.
Looks for possible price increases, and estimates
there will be 200 new TV stations in current year.
Forecasts *
only a trickle of color television sets on market in 1954, but a
rapid increase thereafter.
Estimates government purchases '
1953 and 1954 at $3Vi billion annuConcludes total electronic business, at factory level,
in 1954 will exceed $5 billion.
The electronics
pronounced
.one
of
industry has the
advantage
of
being
of the great growth industries
our
time.
The
industry has
been
in
a
.strong growth
trend for
r
;
«#
,/
~
,
i
„
a
whole genera¬
tion now, and
the end
-
seemed
been
since
ago.
If
sales
cite
fused
Copeland Refrigeration
26
Stockholder Prospects in the Food Industry—Paul S. Willis.. 28
A New
C. A. Dunham & Co.
Technique for the Small Investor: Monthly
Investment
Plan—Dudley F. Cates..........
55
Federal Electric Products
Articles
Television and Electronics
on
Industry
Haile Mines
Medical Electronics: A Billion Dollar Market
—Phul
A. Just
Cover
Television: Major Factor in Electronics Industry
—Frank W. Mansfield
^..Cover
con¬
about
Bought
Members New York Stock Exchange
Oct.
15,
Courtnay Pitt
substantial
At
New York
on
bulletins.•
news
intervals
all
in
drastic
to
price
cuts
12
JOHN F. REILLY,
Unlisted
13
Channels of Investment in TV—Ira U.
,
last
Cobleigh....
Markets—Robert
C.
Sprague
☆
15 Broad Street,
Telephone
18
Television's Role in Education—John T. Rettaliata...
Dlgby 4-1680
...
Outlook for Antenna Sales—Harold Harris
30
to
further
growth and move the merchandise they had
going to come built too far in advance of the,;
about automatically and without
demand.
a lot of hard work. Nothing could
Looking back, the remarkable,
be farther from the truth. In post
thing is that business fared as well
war America,
there has been all
as
it did, and that the industry
too much guessing about where
had its second best year with sales
the Federal Reserve Board index
at
the
factory
level
of
about
is going to be three or six months
6,750,000 j receivers.
Nothing
I
from
now
and
perhaps not
know of better demonstrates the
enough attention has been given
inherent vitality of television and
to the thought
dif¬
Amendments
Correction
(
to SEC
Laws OK'd
by
Senate
Views of Girard L. Spencer
on
Interest Rate Trend
.*
Business
Trend
Bright Spot
as
Free
of
225 unlisted
29
.
Guaranty Trust Co. Sees Coffee Price Fluctuation
Markets
Test
a
*«.
...
Calm and Cheerful!
trading markets in
8
Purchasing Agents Cite New Orders
in
We maintain firm
8
j
on
(Boxed)...
stocks and
45
61
bonds.
—
and effort that
individuals are
giving to stimulating and enlarg¬
ing their own part of the economy.
view
current
tronics
industry in
circles
may
the
of
some
reflect
elec¬
financial
this
general
attitude. I would remind you that
television and, in fact, the ap¬
pliance industry
are
businesses.
not
to
is
It
engineer
promotional
just enough
produce a fine
and
product. It is equally important to
create the demand for the product
through merchandising and ad¬
vertising
and
point-of-sale
in¬
formation.
the value
With
better
leading
companies
in the
industry have been able to do this
successfully over the years, and
that
is
one
of
the
principal
reasons
why the industry has al¬
most always made
and sold more
radio sets, and in later days more
television
♦An
Third
the
address
by
York
Mr.
Regional
Eastern
New
than
sets,
Society
might
have
Pitt before the
Conference
of
of
Security
of time, a
of proportion has de¬
passage
sense
As We
Companies which,over¬
produced are clearing their in¬
ventories, and the demand from
the
public,
the
wheat
who
have
from
the
of
all
receiver
business.
even
some
with the reductions of late
There
are
now
television stations
can
expect
stations
had
more
the
areas
which
Mutual
more
Securities
the
financial
Continued
alysts, New York City.
on
The
.
.
specialized in
I Like
Security
25
•
Manchester, N. H.
New
York
Stock
TELETYPE N. Y. 1-5
Chicago
•
Nashville
•
Glens Falls
•
Schenectady
•
Worcester
Corp.
1954"
on
10.
page
Twice
not
Drapers'
1
Weekly
land,
COMMERCIAL and
c/o
&
E.
C.,
Eng¬
1
Smith.
by William B. Dana
Company
1954
i
Reentered
Patent Office
London,
Gardens,
Edwards
Tracerlab Inc.
second-class matter
as
Febru¬
25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
ary
B.
Park
DANA
Place,
COMPANY, Publishers
New
2-9570
York
7,
9576
to
HERBERT D. SEIBERT, Editor &
WILLIAM
Exchange
•
Piasecki Helicopter
4
68
...
Economy in
column
Reg. U. S.
DANA
Thursday,
ST., NEW YORK 4, N. Y.
Boston
•
2
FINANCIAL CHRONICLE
PREFERRED STOCKS
TELEPHONE HAnover 2-4300
Albany
Best
available this week.
He is on a trip through
Europe and Middle East investigating Cold War results in the economic area.
May's
REctor
Members
Inc.
14
Rohr Aircraft
"Canadian
♦See
25
BROAD
Oil
39
—
Wallace Streete
Copyright
Spencer Trask & Co.
Helicopters
64
...
Washington and You
WILLIAM
25
Offerings
and You—By
.
Hiller
62
The State of Trade and Industry
Published
have
Security
Empire State Oil
47
Registration.
Security Salesman's Corner
The Market
The
For many years we
1-1826
42
—
in
Now*
com-
page
61
1
Securities
Prospective
♦♦Mr.
An¬
NY
48
Governments
on
Railroad Securities
solete, small screen sets is bound
to be heavy. If the general econ¬
omy holds near current levels, and
&
**
Reporter
Public Utility
service, the demand for new re¬
ceivers and replacements for ob¬
Exchange PL, N. Y. 5
1-1825
57
Our Reporter's Report
not
40
Teletype NY
54
Our
new
MACKIE, Inc.
—66
Observations—A. Wilfred May
service previously.
than 550 stations in
apparently
Funds
News About Banks and Bankers
television
With
59
NSTA'Notes
350
have
&
HA 2-0270
6
Bargeron
Indications of Current Business Activity
to
be -in
Singer, Bean
24
...
From Washington Ahead of the News—Carlisle
air, and
than 200
8
Einzig—"Threats of Lower Food Prices"
begin operations this
Many Of these new stations
year.
will
on
*
8
Dealer-Broker Investment Recommendations
1953.
than
more
68
■
possible that you will see
price increases as compared
It
47
...
Coming Events in Investment Field.
is
of
Cover
Bookshelf
Canadian Securities
last
year's conversations, is re¬
sulting in a very gratifying vol¬
ume
(Editorial)
Business Man's
separated
chaff
See It
Bank and Insurance Stocks
veloped.
we
The
Regular Features
it offers.
the
NY 1-3370
Important Uses of Television in Industrial Operations
—G. H. Wilson
20
future progress are
ferent groups and
New York 5
Teletype
16
1
Manager
Trading Dept.
16
Electronic Industry's Great Asset: Diversity of
hesitated for a while
buying of black and white
and certain companies re¬
sorted
Holsten
—Benjamin Abrams
public
its
A.
3
Electronics: Matured, But Growing Industry
"Color by Christmas." No wonder,
the
Vitality—Courtnay Pitt
Status of Television in Europe—Ernest A. Marx
-
people who wanted to make
sets,
to
the;
the headlines got up and solemnly *
announced
that there would be
ahead.
one
in
at
with the attendant"
publicity
and
tele¬
frequent
year,
products—over the years
Now I would be the last
(.public
held
was
vision and radio
further
the
was
1953
front-page
doing the research and de¬
velopment work
on- new
ideas
The
Sold
—
BURNHAM AND COMPANY
be¬
that
22
How Mild Will the Depression Be?—Ezra Salomon....
Manufacturing
9
those
predict
Brunner
4
is going to be made by
the leading companies—especially
new
15
Needed: A Catalyst to Maintain Economic Progress
—Arthur A. Smith.
_-_l.
^
Color Television—E.
progress
and
14
another
climax
a
time
Waldorf-Astoria
good
to
STREET, NEW YORK
13
Business and Health—Roger W. Babson
WALL
Telephone: WHitehall 4-6551
What We May Expect in Electronics—C. B. Jolliffe..
the
at
demonstration
and
that
Does Government Insurance Develop Excessive
Mortgage
Credit?—Marcus Nadler
could
utterly
misinformed
available, until
reached
$5,000,000,000
lieve
99
Television's Inherent
approximated
reason
12
be
volume
is
and
after
was
for Progress Report
Send
10
color television and when it would
1939, the in¬
dustry's total
there
public
a
Ribbon
NORANDA OIL CORP.
10
1954—Douglas Seaman Cole
that might win
11
year
time, I
were
instance
when the
$200,000,000 in
last year,
there
"dog"
n
'
a
AND COMPANY
Blue
8
Shape of Things to Come—Clifford F. Hood
industry
March
of
end
one
of
than
television
the
the
A
6
How to Stabilize Purchasing Power Income from Foreign
Loans—Daniel K. Andrews
1
cold statistical
a
I
5
Current Recession More Serious Than Inventory
Trimming—Edwin G. Nourse
l
thing is going to happen in 1954.
If ever an
industry ■ has had to
contend
with a
barrage of un¬
favorable
and
misleading pub¬
licity over an extended period, it
in sight. From
less
on
Wyeth
Policy and the Economic Background
The Canadian Economy in
basis at the beginning of the year.
I have a feeling that the same
has
is not
likely
F.
Where Is the Helicopter Heading?—.Frank N. Piasecki
of electronic equipment in
ally.
Securities—Herbert
$37 Million Issue of West Virginia Turnpike Bond
Financing Near—Edwin L. Beck-d_
inherent vitality in
an
Their
Page
and Outlook—Harold E. Aul
unfavorable and misleading publicity since March, 1953, more
television and radio sets will be sold in 1954 than the cold
j
llCHTEIISTEIII
B. S.
r
Articles and News
Every
vertising
SEIBERT,
March
Other
Chicago
Y.
Subscription
Subscriptions
Publisher
President
3,
111.
135
Union,
Dominion
Canada,
South
La
(Telephone STate
of
Countries,
Rates
United
in
Territories
Pan-American
1954
quotation
clearings,
S.
of
year;
in
per
$51.00
per
per
year.
INCORPORATED
39
BROADWAY, NEW YORK 6
WHitehall
3-3960
year.
Other
Bank
and
Quotation
$33.00 per year.
Note—On
Publication
Record — Monthly,
(Foreign postage extra.)
account
of
the
fluctuations
the
Salle
U.
Members
$48.00
$55.00
W» V. FRANKEL & CO.
/
States,
and
Teletype NY 1-4040 & 4041
Thursday (general news and ad¬
issue) and every Monday (com¬
Offices:
Possessions,
Other
4,
plete statistical issue — market
records, corporation news, bank
state and city news, etc.).
.
N.
1
St.,
2-0613);
in
rate of exchange, remittances for for¬
eign subscriptions and advertisements must
lie
made
in
New
York
funds.
3
Direct
PLEDGER
&
Wire to
COMPANY INC.,
LOS ANGELES
4
The Commercial and Financial Chronicle
(980)
only in terms of technical
What We
plishment, but
May
Expect in Electronics
of
exists
devices
JOLLIF'FE*
By C. B.
Vice-President and Technical Director, Radio Corp.
accom¬
us.
today
in
technicians.
We
labora¬
Asserting electronic research has only just begun to work the
we
wonders of which it is
devices and ideas may be working
fundamental changes in our way
of living during the next decade.
which did not
capable, Dr. Jolliffe points to television,
exist in 1945, but now accounts for 80%
even
of the $3 billion electronics
industry. Discusses possibilities
of color television, along with other lines of electronic re¬
search, and points out fields of its use in business, in sci¬
and in the home.
ence,
Concludes, there is
electronic development.
to
its
is
research
development
but
of
our
nearly
slowed:
and
rapid
corporations de¬
all
so
sciences
1
b
a
r
a
lies
in
teamwork
&an
!
Francisco:
*
.
I
move
have be¬
c.
Dr.
B.
Jolliffe
teristic
General
said in
Stanford
the
talk
a
David
Sarnoff,
of RCA,
Board
the
to
Research
directors of
Institutes:
people
science
and
industry
who
Without continued pio¬
would
harden.
The
So
rapid
*An
Third
that the
alysts,
moved
who
by Dr. Jolliffe at the
Regional
Conference
of
Society of Security An¬
York City, Jan. 28, 1954.
York
courage,
are
pace
and
as
of
the
elec¬
lot
a
more
know¬
Those of
us
in close contact with elec¬
know
dealing with
a
only that
science that
has just begun to work the won¬
ders of which it is
capable, not
the
total had reached
1,000,000.
Today, at the end of eight years,
nearly 27,000,000 sets are in use,
produced by nearly 100 manufac¬
turers
and
to
perfect jewels.
virtual certainty for
extension
activities.
search for
when the
obscure, unseasoned invest¬
outstanding leader in its field is avail¬
attractive
price in relation
to current
prospective earnings and yielding 4.8%
dividends.
on
and
the basis
of present
Our recommendation:
A
Radio
Corporation/
comprehensive 7-page analysis of rca
our reasons
in his
why
every
stations.
Sarnoff
pointed out
ago, a television
not
to our
in
the
1945
now
available
to
you as a
twice-monthly investment letter
response
feature of the
available
at
$25
acquaint investors with this unique advisory
service, the rca study plus the
purchased for $2.50.
subscribe
on a
current report
may
We believe you will want to
year-round basis after reading this issue.
ARTHUR WIESENBERGER &
61
the
end
of
is
and
the
March, it
Stock
the
fact
that
about
reported.
was
■
70.5%
of rated capacity,
vised
rate, and another
This
down three points from last week's
low for the year.
new
of
the
will
on
to the February average of 74,0% of
capacity.
Chances of
much better than that are slim, states this trade
doing
authority.
Total steel
February.
production in March will probably be greater than
But this will be due primarily to three
month.
A
in
business has
at least in
the
ness
to
spur
bullish
cards
turn
some
for the
mean
worse.
laid
producers to work off stocks
they had accumlated in the hope that busi¬
Thus, rolling mills
some
are
temporarily
process¬
of the seasonal factors that had been counted
the market
influence
is
wielding positive influence.
are
offset by
But
this
depressing forces which have
Un¬
confirmed
We wish
late
television
new
solid
a
on
page
was
This
won.
facilities,
than 50
cost
million
fore production
was
JOHN G. BEUTEL
I
are now
■
,
associated with this firm in
have
justified
de¬
and
RCA
dollars
FOUNDED 1890
be¬
started. There
This
investment
the
in
our
United States Government Bond Department
J.<3. WHITE 6c COMPANY
question that the results
no
that
research
together with the
velopment of broadcasting
program,
be
to announce
Edward j. O'Connell
growth
industry
INCORPORATED
expenditure.
research
and
engineering produced a major in¬
dustry and a significant public
37
V^all
Street,NewYork 5,N.Y.
March I, 1954
service.
But
that
future?
threshold
era
is
We
of
The
the
the
the
approved
system
on
to
which the
operates.
carry
color
great future audience, stands
dollar
RCA
Be¬
to
Exchange
NEW YORK 6, N.Y.
service
a
a
so
to
a
our
life
can
and
people.
Continued
We certainly
on
556
YORK
STOCK
EXCHANGE
ST.
CENTRAL AVENUE
PETERSBURG, FLORIDA
TELEPHONE 7-5131
TELETYPE ST.
PBG 82-089
MARCH FIRST, NINETEEN HUNDRED AND FIFTY-FOUR
con¬
improved and reduced
our
NEW
that
price that makes it available
to all of
INCORPORATED
MEMBER
30
research
This research and de¬
part of
tinue to be
McCLEARY & CO.
a
development plan which began in
1930's.
Opening
standard
specifications, and be¬
production
the
Formal
Communications
hind the cameras, transmitters and
receivers that are now going into
million
announcing
television
opening of this
signal specifications
color
of
at
only last month when
Federal
Commission
new
now
color
official
occurred
the
here—what
stand
page
42
that
It results
steel than is being melted, continues this trade journal.
Actually
on
sudden
a
part from need of
would improve.
more
ingot rate this week does not
taken
of semi-finished steel
ing
days in
during the next 30 days, it notes.
The decline
steel
more
sharp unturn in business just isn't in the
the
research
re¬
p
be a bitter disappointment to those who had
been
seasonal factors to bring about an upturn in -March.
Chances are steel business will
improve during the month.
But
it will take a gain of ZVz points
iq the operating rate to get back
banking
the
which took place after World War
can
disclosed
triumph of industrial
electronics.
a
in
This
more
It
for 80%
billion radio and tele¬
business during 1952!
basis for the phenomenal
II
orders."
new
accounted
the apparatus that will make this
COMPANY
Exchange and American
IROADWAY (Dept. R-K) •
weeks
industry that did
at
comprising
Beginning of March finds steel business more lamb-like than
the weather, according to "The Iron
Age," national metalworking weekly.
Steelmaking operations this week are scheduled at
broad¬
few
velopment must continue
Members of New York Stock
since last
General
a
ago,
$3
hind these
per year.
be
bright spot is in
depression decade
the 30's, intensive research into
era.
current wiesenberger
investment report-our
To
As
unemployed though,
year
What of the Future?
clients, this
study has been accorded such enthusiastic
that it is
exist
even
of
presents
investor should have this stock
portfolio. Just distributed
by 360
casting
production
No need
at an
served
the many problems of
television
by the scientists and engineers of
RCA was
generously supported
and encouraged by our
manage¬
industry—with its manifold
our
in
a
30% of its members reported increases in bookings
"exactly bal¬
ancing the number of decreases."
That was the best showing
—at least not
about 10,000
the United
were
sets
The number of
numerous.
An encouraging note was struck
by the National Association
Purchasing Agents in its February report when it stated, "The
a
there
year,
television
ment.
phases of
black-and-white
Through the boom
for Tomorrow
a
public.
for the
its commercial aspects
as
more
the
of
Truly dynamic growth is
with recalls
continued to be substantially greater than
developed major industry in our
history.
In 1946, the first post¬
1920's
are as rare as
the
States, many of them being used
After two years,
describe experimentally.
Investment
able
as an
post-war phenom¬
enon—perhaps the most rapidly
This
ments
phenomenally
promise
concerned,
research
the electronic
great
As far
vision
Dynamic growth stocks
Birthday.
.Output dropped below that of the preceding week and con¬
tinued at a level of close to 7% under the like
period in 1953.
Reports of layoffs were less frequent than in recent weeks
has
development
products of tomor¬
research
we are
those
J
war
who tries to
sound
holds
of
all
television
future.
war
to
we
from
up
Index
Production
Total industrial production for the
nation-at-large in the pe¬
riod ended on
Wednesday of last week suffered a moderate set¬
back due to Washington's
Television
life.
Color television has just now
television is
crossed
ago
ing than he really is.
spirited
address
New
man
the electronic
Eastern
New
are
Industry
Price
Auto
Business Failures
approximately 5% of the labor force."
during the past seven years
integral part of American
requires
same
the
is
research
tronic
the
the
century
Western plains."
row may
neering and research, those arter¬
ies
facilities
television,
Black-and-white
are
research
a
tronic
linked by arteries of progress
and their life blood is technical
research.
in
dynamic
vision and determination
•
"Today,
are
And
with
its
and
surge
Food
of
It
"Today it is research that gives
the American economy its charac¬
tations:
of
con¬
maintain
have
two dramatic examples that illus¬
trate
the
accomplishments and
promise
of
electronic
research.
frontiers without limit.
come
quo¬
Chairman
research
to
duction for service to
qualities.
Brig.
dollars
the West into the research labora¬
give
two
RCA
as
of
business
tory, and in that
new
and
illustra¬
tions
is the
the development
stage to the initial phases of pro¬
•
you
by
established itself
"Our frontiers have moved from
services.
As
millions
Color
be¬
industry."
ident of du Pont, said recently in
divi¬
in
such
Today,
Mr. Crawford Greenewalt, Pres¬
tions find that
research pays;
it returns
dends
It
which
emerge
planted tomorrow's profits.
end.
an
research and
tween
the
pattern of our industrial
them.
-
corpora¬
products
In
extensive
decline
clear.
It lies in a
between those who
create good things and those who
produce and distribute and service
These
large
be
is
partnership
sup¬
o
try.
progress
research
tories.
to
come
from
process
developments
life blood of the electronics indus¬
would
would
progress
"This
upon
the natural
port
industry
however, that
aware,
research
being invested
of
advance
largely a
generation,
growth has been
pendent
the
these
present limit
no
well
are
cerns
Industrial
that
We
Commodity Price Index
<
and
guess,
Trade
Retail
State of Trade
but
cannot know, which of these
can
Output
Carloadings
tories of even as untested ideas
in the minds of our scientists and
of America
Production
Electric
experimental
as
industrial
our
Steel
The
Much of the future in electron¬
ics
Thursday, March 4, 1954
in terms
even more
better life for all of
a
...
SUCCESSORS TO
FLORIDA SECURITIES COMPANY
58
Number -5304
Volume 179
The Commercial and 'Financial Chronicle
>».
(§81)"' S
is daily becoming more important.
Railroads and Their Securities
By HERBERT F. WYETH*
Shearson, Hammill & Co.
Members, New York Stock Exchange
Pointing out that, despite discrediting of railroads as an invest¬
medium, their securities are still being accumulated by
insurance, savings banks and other similar institutions, Mr.
Wyeth stresses the importance of selectivity in analyzing in¬
vestment merits of individual rail issues. Lays down as factors
in selecting railroad securities: (1) territory served; (2) competition; (3) type of traffic; (4) terminal situation; (5) pro¬
portion of passenger to freight traffic; and (6) management
Says a constructive attitude toward future of railroad industry
is fully justified, and cites use of diesel engines and other
mechanical improvements as giving a "new look" to the rails.
Reviews briefly outlook of individual railroad companies.
ment
'
wide field of tant financial stake in
some $9 billion roads.
Railroading is
investment, with
of bonds and
d
Railroad
It
and generally
maligned in¬
vestment
to
securities
me¬
roads
is
never
consider
the
of
This has meant
for
the
in,
the
•
various
rail¬
Be
operations
coun¬
traffic
more
roads
of
quality and depth tios, the percent of the
management
is
becoming in¬
dollar
revenue
creasingly important and- in my
opinion is the most vital consid¬
and: handling the- traffic,
eration in the whole picture today .
profit margins, the percent of the
relative
a
mature
the
sections
of
the
in¬
England, northeast¬
middlewestern
and
ern
of
sense,
I
Continued
have gone on at some length
on
and the
page
States.
rail¬
single
in¬
trend, by all indications, is
continuing, perhaps even at an
accelerated
pace.
(2) Competition: One of the fac¬
tors
most
those
taking
fyfe
often
a
mentioned
by
gloomy view of the
aie
fiteabect to
announce
tAat
future outlook for the railroads is
vestment problem. No one would
think of saying, just as one exam¬
the growth of new forms of com¬
thinking,
largely based
ple, that because General Motors
petition.
on
same
much
loose
some
is
un¬
happy experi¬
in
ences
effect
who
that
such
lack
Fortunately
this opinion is not shared by many
of
our
leading institutions, in¬
cluding
large
banks
and
the
of
some
insurance
companies. Life
companies have been
increasing their net holdings of
insurance
railroad
bonds
consistently since
the end of World War II and
hold
at
least
securities
a
third
of
such
all
outstanding.
now
Institu¬
tional holdings of railroad stocks
have
also
though
increasing,
been
this
trend
has
al¬
been
re¬
tarded somewhat by legal restric¬
tions. Thus, whether you realize
it
or
not, and whether
or
like it
you
not, all of you who have life
insurance
policies, and most of
you who have savings bank ac¬
counts, have a direct and impor*An
manufacture
Yet the very people
deride
such
invest¬
air
Has
lines, and private automobiles
have diverted
of
ume
considerable vol¬
a
potential
the railroads.
business
joined
our
firm
in charge of our
from
The impact of these
with
Special Partner
as a
Municipal Department
headquarters in Chicago.
say,
all
characteristics.
ment
would
both
philosophy will not hesitate competitive agencies, however, has
widely
with
individual
"The rails are a buy," or varied
"The rails are a good sale," tarring roads.
Pipe lines, for instance,
to
Herbert F. Wyeth
t-*!
invest¬
true
the
DONALD R. BONN I WELL
There is no question but
that the pipe lines, barges, trucks,
ment
railroad bonds,
as
they
automobiles.
e
investment
must be true of Packard just
because
the
1930s, to t h
attractive
an
address
by Mr. Wyeth at Colum¬
bia University, i New York City, March 2,
1954.
units
this
in
widely
industry with the
To
underline
same
diverse
brush.
the
fallacy, and
real danger, of any such approach
to
investment
in
railroad
securi¬
ties it is only necessary to look at
the record. Back in 1940 Santa Fe
sold
common
vania
was
13
at
and
Pennsyl¬
at 15, with both show¬
ing about the
same earnings per
Last year Santa Fe earned
share.
share, on a Stock that had
split
two-for-one,
while
Pennsylvania
had
earnings
of
$2.81 a share. Pennsylvania is still
$14.62
a
been
largely affected only those
roads that originally had an im¬
portant
tonnage
of
petroleum
products. Roads with the largest
is
of
selling
about
200.
at
I
the equivalent
could
cite
many
other similar examples, some just
spectacular,
as
but
will
not
be¬
MUNICIPAL
INCLUDES
DEPARTMENT
In New York
G. WILMER
passenger business have naturally
been hardest hit by competition
from
In
airplanes, busses and private
automobiles.
Barge competition is
important only to those roads that
parallel waterways. Tracks have
their
made
greatest
GEORGE
extensive
SLAIGHT, JR.
Chicago
MAURICE
MANGAN
D.
BEARDSLEY
E.
headway
against those roads serving rela¬
tively compact areas served by
JAMES
CRUTTENDEN
R.
good highway systems.
In Denver
Factors in Railroad Investment
where it did nearly 15
ago, while Sante Fe com¬
mon
OUR
have
selling
years
JOHN
Analysis
(3) Type of Traffic: To a certain
degree this point overlaps the pre¬
ceding one of competition. Truck
competition has been most
labor the point at this time. What
I want to impress on you is that
in
selectivity has always been the
key to successful investment, and
roads
the
and
1.
as
manager
GOODE
of
in Colorado
department specializing
our
Municipals.
severe
goods
shipments. Thus,
primarily
dependent
on
goods industries and with
case
for
heavy
a
of
Who continues
H.
consumers
1.
c.
small volume of 1.
c.
tyte
1. business
ake/iteabect to
announce
have
We
pleased
are
are
to announce
now
that the following
associated with
us:
generally maintained their
positions more readily. Also, with
respect to 1. c. 1. freight, it is gen¬
erally expensive to handle and has
a
large labor factor.
Thus, as
wages
have gone up the roads
t/ie
LYNN SHURTLEFF
PIERRE R. BRETEY
PETER G. WYCKOFF
AUGUST W. KOPS
Research Department
Commodity Department
greatest amount of this
type of traffic have found it more
Railroad Specialist
HENRY LEACH
HENRY N. KOHL
ARTHUR J. FITZGERALD
most part wage increases granted
in the past 10 years have been on
cents-per-hour
of
This
same.
AND THE
basis, with all
faring the
employees
has
meant
that
G.
the
larger
This
creases.
percentage
has
meant
also
are
pleased
to announce
that
now
manager
of
our
Corporate Department
costs
have
been
harder
road
haul
costs
diesel has been
roads with
have
tions
hind
Hayden, Stone & Co.
Established 1892
in¬
MILTON
traffic
STREET, NEW YORK 4
509 Fifth Avenue, New
York 22
YorJt 17
SPRINGFIELD
PORTLAND
'
'
ALBANY
.
WORCESTER
MAPLEWOOD
'
AMSTERDAM
March 1,1934
,
'
MONTEVIDEO
if it
A
saddled
DAWSON-SMITH
We
now
have separate
New York office and to
wires to
our
our
New York
the
as
enue.
EDWARD
Registered Representative
with respect to
Also, with respect to
and
termination
of
moves
produces four times
amount
BOSTON
S.
the
length of haul is im¬
The cost of - originating
or
terminating any shipment is
just as high if it travels only 50
miles
575 Madison Avenue, New
where
valuable. Thus,
heavy terminal opera¬
generally lagged be¬
origination
RIPER
Registered Representative
yard
others
cost control.
VAN
offset
correspondent, Reynolds & Co.
portant.
Members Principal Exchanges
25 BROAD
the
so
to
1
SLAIGHT, JR.
more
a
and the increased station and
than
DAVID B. MacNEIL
is
WILMER
OF
US
Manager
rapid increase in the station and
yard costs than in road haul costs
We
WITH
ASSOCIATION
the
lower salaried workers have been
given
Retail Sales Department
.
Bowling Green 9-2700
(4) Terminal Situation: For the
classes
HARRY C. HOWELL
37 Wall Street
difficult to control expenses.
a
cfieninvj of a
NEW YORK OFFICE
with the
Manager, Research Department
and
actually moving
spent on
This
individual
re¬
are
least in
more
a
differences
These
flected
the
between
are
roads.
operating in the
growth centers at- the expense, at
will be possible,
industry or the
all
there
through aggressive
this question of
try.
Should
presenting
as
traffic volume
solicitation policies, reduced costs
the western sections of the
has been possible, and
never
presumably
dium.
There
Securities
.
,
through modernization programs,
earnings of the individual rail¬
tralization Of industry, marked by
financial policiesr etc.
With the
roads.
How wide the variations
a
rapid expansion in population many serious
problems that the
and industrial plant, first in the railroads
have had to face in re¬ may foe is best illustrated by the
southeast and more recently in cent
wide range of transportation ra¬
years, and still must face,
Considered Individually
rstood
e
•
dustrial New
Also, it is1
outstanding.
widely mis-
u n
;
(1) Territory: There has been a
long-term trend toward decen¬
•
$8 billion par value
of stocks
a
the
a
service, is expensive and gener¬
Our whole economy is in a con¬ ally
"OBSERVATIONS"
conducted
at ' : substantial
stant state of flux, and conditions losses. The road that has a large
A
Wilfred
May's
Column
affecting* the fortunes of the in¬ passenger business of this nature
does not appear this week.
dividual railroads will naturally will naturally experience a seri¬
Mr. May is on a trip through
reflect
these
changes. I might ous drain on its profits from the
Europe and the Middle East
mention at this point a few of the freight service.
investigating Cold War re¬
factors that have led, and will
sults In the economic area.
(6) Management: The caliber of
continue to lead, to wide varia¬
management will Vary widely and
tions in the performances and
it is .management that makes the
prospects of the individual rail¬
outlining the points of difference
important decisions that influence
road.
:
short
as
much
with
railroad
of
200 miles and
a
rev¬
large
haul' traffic
is
with
inordinately high
orignating or terminating costs in.
relation to the revenue produced.
CRUTTE N DES & CO.
209 S. La Salle Street
Chicago 4. Illinois
DEarborn 2-0500
'
Denver
Milwaukee /
Indianapolis
New York
t
;
'
Lincoln
Oniaha
•
St. Louis
•'
(5) Passenger Business: Passen¬
ger
business,
,
and
1
particularly
short haul local and commutation
.-i:
v:-.t
i
...
IK. 4S v?"
46
6
The Commercial and Financial Chronicle
(982)
which
Investment
Policy and the
Economic Background and Outlook
resemble,
gests
we are now
executive
holds
the
decline
in a business recession, investment firm
relatively mild economic downturn will
and
capital equipment; (3)
eral
a
the
from
high
Factors in Business
-Back in the Hoover
Outlook
in
negative factors in the busi¬
include
outlook
ness
durables,
moderate further decline in Fed¬
as
The
just
year
has
closed
been
the most prosperous in the
history
the
Nation.
The
number of
of
people employed,
ceived and
goods
incomes
re¬
and
record.
•'of
farm
of
a
of
living—the prod-
in
the
of
considerable
apprc-
the
372.4
of
six
now
and
billion
Federal
produc¬
tion has been reflected in
empWment
and
number
in
of
January
million,
income.
unemployed
in
estimated
was
in
The
mid-
at
2.25
more
increase of
an
million
one
labor
than
period of three
months from October, 1953, to the
highest level since early 1951; and,
a
a concurrent reduction
labor force, the decline in
the number of
employed in that
period has mounted to about two
million. A reduction in the num¬
the
ber of hours worked and in
time
also
trend
resulted
in
a
over¬
declining
during the past six months
in the average
weekly
those employed.
It
is
now
clear
earnings of
that
the rise
industrial production
which
place in the first half
of
at
a
more
rapid
in
took
1953
was
than
rate
the
gain in consumption; and we are
pow in a process of adjustment of
the
of
^
of
the
economy
inven¬
and
a
slowing down of retail sales re¬
in a sharp and persistent
sulted
in
new
half of 1953.
orders
new
suggests
in the
last
Moreover, shipments
have been steadily
orders with
cline in
a
exceeding new
sharp de¬
backlogs. This
resultant
order
further extension of the
declining trend of industrial pro¬
duction
line
a
to
with
bring inventories into
consumption.
Current economic statistics fur¬
further evidence of a con¬
nish
tinued
tions
downtrend.
in
business
failures
January
longer be
de¬
any
shall
ex¬
We
the
we
What
concerns
probable
of
the
degree
us
and
decline
current
Steel
have
opera¬
averaged
•An
address by Mr. Aul before the
Rocky Mountain Group, Investment Bank¬
Assn. of America,
Denver, Colo., Feb.
ers
1954.
in
invest¬
on
add
to
my
voice
of
the
prophets
babel
to
You
can
get
to
forecast
any
that suits your fancy all the
way
from
an
early renewal of the
boom to the doleful prediction of
major depression. Unfortunately
those who are charged with the
responsibility of investment man¬
a
strict
high
current
The
(4)
level
ris¬
with
buying
consumer
view
is
that
the
bal¬
is
historically
still
low
arises
of a
activity in 1954
expectation
the
short
In
decline in business
the
from
principally
gap
represented by a reduced demand
for durable goods and cessation of
inventory
There
tive
commodities
of
particu¬
of
cause
dance of
the
disastrous developments in the in¬
mand
and
seems
reasonable
to
forecast
for
1954, a decline in the rate of
industrial activity of the order
of,
but somewhat
greater than, that
of 1949. The conditions
giving rise
to
the
setback
that
at
time
are
again present but some of the sup¬
porting forces which buttressed
that decline
appear to be less
orous at this time.
I
the
am
currently
lines
industrial
of
an
vig¬
in
level
1954
of
as
measured by the Federal Reserve
Board index about 10% below
the
average
of
1953
from the 1953
and
peak
of
possibly
16%.
a
to
decline
the
The
able
1954
1948-
1949
decline from peak to
trough
lasted nine months and
amounted
to about 10%.
The 1938
decline,
absence
of
specula¬
in the securities-and;
markets,
the
abun¬
capital and credit avail¬
for
sound
stimulation
business
of
,
The
huge
of
amount
chain
reaction
liquidation,
to
simists such
been
of
which
signal, Senator Lehman
the
ward
is
minutes
several
of
On
these
the
of
the
circumstances
contrary
You might say
He held
conditions are easy as reflected in
the past six months. The prospect
is for continued monetary ease for
money
time
ahead.
While
cannot of itself halt
Continued
on
easy
a
page
levee
a
on
the'Senate floor for
this
was
also by
of initiating
way
or
accepting
Kennedy into the club. Like the way in which college
students seek to pledge new students to their particular fraterni¬
ties, the "liberals" rush
take
him
future of
a new Senator.
They wine and dine him,
to the mountain top and point out to him that the
the world lies with him; they will be
glad to give him
up
guidance.
When he
in the
was
with the Republicans in the
in the Senate it has
over
would
wind
The
House, Young Kennedy went along
matter of the Taft-Hartley
been
apparent for
with the "liberals."
up
"progressives"
the "liberals "I
not
were
They had
as
well
as
a
Act.
But
long time that he
supplied with
money
as
patrons the late Senator Jim Couzens,
who made millions when he sold out to
Henry Ford, and the late
Cutting of New Mexico. Cutting even left a handsome
bequest to the two LaFollette boys, Bob and Phil.
Bronson
But
the
"liberals"
have
four
millionaires
Lehman, Murray, Green and Kennedy.
the
catch
latter
was
for
the
You
in
can
considers
himself
their
group:
imagine what
a
"liberals."
The master mind of the crowd is
octogenarian
Douglas
the
intellectual
Green, "although
fountain.
Green is
At committee hearings I have seen
every member asleep except him.
He is always wide awake and
his questions to the witness waste no
verbiage. He goes right to
amazing to
the
heart
in many
me
the
of
above
man
the
'*
But
Douglas'
publicity portrays him
modern Diogenes.
a
as
a
When he speaks it is
answer.
that he
is up for reelection
you ought to hear him
raising income tax exemptions up to $800 instead
This is considered sure-fire vote getting.
now
about
scream
of
ways.
question.
strife,
supposed to be the
$600.
Coleman, Duff &
Personal Investment
March
Management Course
ing
de-
52
course
a
in
Personal
Invest¬
ment
Management which is being
conducted by S. A. Sandeen & Co.
Rockford.
terest
has
course
A
been
which
Feb.
great deal
evinced
has
been
of in¬
in
the
running
2,
Additional
lectures
scheduled
Phelps, Inc.
—
16.
"Discussion
since
money
the sharp rise in bond prices and
the reduction in interest rates of
some
into the
young
of
evidence
came
seat just in front of
after he had concluded.
FREEPORT, 111.—The Freeport
snowballing down¬
no
a
and when he came to the point in his speech of
for the project, their mouths opened wide in sham
was
Chamber of Commerce is sponsor¬
spiral.
presence
today.
a
up
young man
past
by excessive speculation and by
tight credit conditions which have
precipitated
a
There followed dutifully, and not necessarily in the
named, Senators Green of Rhode Island; Murray of Mon¬
tana; Aiken of Vermont; Douglas of Illinois; Monroney of Okla¬
homa; Morse of Oregon, and so on. They formed a cluster around
refer,
the
cover
"surprise" and
a
order
inventory
the
pes¬
in
in no
de¬
liquid
Colin Clark
as
preceded
was
who
made it
bobbing cork and took
a
arising from reduced taxes
the
have
group
this project
newspapermen
on
Kennedy.
needs,
consumer
assets in the hands of individuals.
There
thinking along
average
activity
the
excesses
larly with regard to common stock
values, always of course barring
It
"liberal"
event.
chamber like
is, of course, another and
only with regard to the
course
the
But
momentous
as
incomes and
liquid assets; and the rate of per¬
sonal savings is high.
personal
to
related
related to the longer term outlook
I am a confirmed
optimist, not
more
Senate.
surprise and admiration.
however,
absolute
majority opinion though mine justment which has now been in
is perhaps somewhat more
pessi¬ process for the past seven months.
mistic than the composite view
as
(1) The current inventory readr
to both degree and
duration.
As
justment should be orderly .be¬
but
the
that, despite the
figures, consumer
here,
high
the
economy
The Senator's position
surprise to other Senators or to
saying he
brighter side of the coin; and the
tively mild economic downturn following positive factors in the
extending at least through the outlook
support
the
conclusion
year 1954.
I am troubled by the that what lies ahead is a contin¬
thought that this appears to be uation of the mild rolling read¬
the
Seaway.
waya
It should be noted
rela¬
a
was in
a way fascinating.
It was the
of- young Senator John Kennedy in favor of the St. Law¬
buying.
goods.
own
of probabilities is for
rence
ing unemployment and declining
job security, as this debt can be
reduced only at some cost to con¬
sumer
stage one of their pageantries.
on the floor but when one
rises to speak,, in walk the "liberals" to take seats around
A recent demonstration
speech
of
debt might serve to re¬
consumer
them
see
As if by a prearranged
term.
My
amusing to
look at him attentively as if earth shaking words
falling from his lips, and then to shake hands with him when
he finishes. They make a speech
by one of their number an event.
pect.
stocking.
This
gap,
however, should amount to only a
agement must chart their course small
percentage of the total pro¬
on the basis of a
carefully consid¬ duction of the country; and it can
ered
assessment
of
reasonable be narrowed
by more aggressive
probabilities, both near and long- selling, reduced costs and better
ance
it is
speaker,
defer-*-
are
expenditures is in pros¬
ernment
debt
possible impact
shrill
goods
They
had with
were
constitute a strategic,
the general economy./
they
element
the
As expendi¬
progresses.
year
rable,
Board.
the latter to give up a $6,200 retirement he
likely won't be another Senator
of them
likely to taper off as
tures for durable
today.
named to the National Labor Relations
one
But
There
(3) For the present a moderatesfurther decline in Federal Gov¬
whether
hestiate
low
23,
persis¬
increase in
regarding the shape of things
in certain
Unwieldy inventories
decline
the
com¬
irf the
ternational sphere.
over-accumulation
tories last year.
sectors
marginal
and
away
of them in the Senate
private employer and then continued to fight his appointment.
a
quarter of
first
the
in
rate
seem
Business Recession
no
are
1954,
values.
come.
because of
in
is
and its
I
The declining trend of
^
the
which
they dropped
one
one
a
forced
even
1953 and
scheduled for about the
same
sharp
policy.
ment
the
ber, about 7.3%.
sion and
consumer
in
dollars
billion
28
effect
business recession.
a
duration
dol¬
or
index of industrial production fell
from 137 in July to 127 in Decem¬
,
of
The
in one. This must be taken as
the point of departure in
any dis¬
cussion of the outlook and invest¬
about 3.3%;
Reserve Board
lars to 36*0 billion
the
other
and
by
one
some unimportant em¬
Carlisle Bargeron
ploye, humiliate him and get him discharged.
Only recently the "liberals" waged a last ditch
fight on a man named to the Federal Communications. Commis-,
capital equipment.
sets
By com¬
"progressives" were tame. As a
fact, the New Deal came along, at
quently tear out after
The pros¬
pect is for a lower output of resi¬
dential housing, automobiles, tele¬
and
are
last
quarters of 1953 the gross
national product declined from an
rate
probable lower level of
products of heavy
A
Sena¬
The two groups had one thing in common,
their pettiness.
The Progressives would fre¬
demand for the
buyer's market
a
of
a
about
ment
fourth
and
those
1953.
months.
can
perience
business
of
the
of
Between
There
second
trend
course
! annual
number
recent
bate
impressive record
basis, the year ended
declining
months.
quite
We Are in
.hension, in view of the evidence
of
and
the
this
note
a
below
of
petroleum
a
ion an annual
{on
and
the fortunes of
in
Harold E. Aul
dynamic economy.
a
Despite
well
period
transition to
a
tent
at
prices
standard
•'uct
•
all
lumber
panies is reflected
^further rise in
•the
capacity ac¬
pai4t of this decline.
a
left, that
industry, both consumer durables
of
on
stable;
meant
that
(2)
ago,
carloadings in the first
year have declined
coal,
same
increased
a s
year
noted
vision
are
remark¬
stable
a
be
late
the
of
there is not
as
rated
The
first to absorb them and then go so far to the
durables;
and
expenditures by
industry for plant and equipment,
which reached a new high level
of
iproduction
!h
in
a
als,
prices have
and
for
capacity
100%
should
parison,
matter
reasonable pros¬
gross change in
of about se^en
a
publicity than the particular
more
portance held by their predecessors.
dollars
production statistics of base met¬
on
jproducts,
been
it
increase
billion
three
as
to be
1954,
pect for
average of about 10%; the bar¬
ometric index of paper board pro¬
duction has finally sagged; and
exception
ably
though
of
much
an
With
some
against almost
an
Railroad
the
•highest
75%
always on hand
a show that drew far
on
Today there is a group of "liberals" aping
them, trying to gain the niche in public im¬
the
to
this segment alone
billion dollars.
month of this
have
been
about
counts
services p r o-
•duced,
only
dollars
billion
four
appears
stock market.
banded
George Moses dubbed them the "sons of
the. wild-jackass." They developed quite an
influence, enough at least to wreck the Repub¬
lican party for a good 20 years.
gross
Concludes, how¬
underlying factors indicate p strong
ever,
about
huge amount of
a
days there
was a group of "progressives"
together and back-slapped each other,
when one of them spoke, and in general
who
tor
national product in 1953, in¬
ventory dis-investment of perhaps
public confidence, and
Senate
speaker's remarks warranted.
top-heavy
inventory
positions.
This adjustment has already made
its appearance.
Whereas inven¬
tory
accumulation
contributed
Government expenditures;
inflation has been frozen into the economy.
;the
put
(1) A probable readjustment of
consumer
the
were
follow¬
the
ing:
is evidence of lack of
all
Washington
Ahead
of the News
quarter
and (4) reduced consumer
buying because of rising unemployment and payments on high
level of consumer debt. Sees prospect of government interven¬
tion to avoid sharp slump and expects lower taxes. Holds there
:
Front
1954
perhaps 9%.
The
through the year, during which there will probably be:
(1) readjustments of top heavy inventories; (2) lower level
products of heavy industry,
in
By CARLISLE BARGERON
extend
of demand for
level
below that of 1953 and
Negative
Asserting
does-
of 1953 to the low quarter of 1954
of
Thursday, March 4, 19a4
.
was
average
an
about 6%
Underwriters
Company
recession
current
the
about 34%. An
analysis of the major components
of the gross national product sug¬
a
By HAROLD E. AUL*
Vice-President, Calvin Bullock
Investment
not
.
.
of
Various
Mutual
Funds in the Market"—John Kas-
beer,
Wellington
Fund,
Inc.
—
March 23.
"Facing the Problems of Build¬
ing an Estate"—Senator Marvin
F. Burt—March 30.
"Panel Discussion of Investment
Problems"—Open forum—April 6.
The classes meet Tuesdays from
7:30 p.m. to 8:30 p.m.; registra¬
tion
fee
$5.
are:
"New
Look
in
the
Science
of
With Carr & Company
(Special to The Financial
Investing Money (The Mutual In¬
vestment
Weeks,
March
Fund)"
Vance,
9.
—
Andrew
Sanders
&
G.
Co.—
Chhonicle)
DETROIT, Mich.—Paul A. White,
Jr.,
Carr
has
&
become associated with
Company, Penobscot
"Utility Industry (Gas, Electric, Building, members of the Detroit
Telephone, Pipe Lines)"—Phillip Stock Exchange.
Volume 179
Number 5304
.
.
The1Commercial and Financial Chronicle
.
(983)
New Issues
$107,500,000
The Bonds of each issue will be secured by a first
pledge of annual contributions unconditionally payable pursuant to an Annual Contributions Contract between the Public
Housing Administration and the Local Public Agency issuing said Bonds in the opinions of bond counsel. Said annual contributions will.be payable directly to the fiscal agent of
with other funds of the Local Public Agency which are actually available for such purpose, will be sufficient to pay the
'
principal of and interest on the Bonds when due.
'
*•
;
said Local Public Agency in an amount which, together
A 1
~
1
"
-
*.
The United States Housing Act of 1937, as amended, solemnly pledges the faith of the United States to the
payment of the annual
contributions by the Public Housing Administration pursuant to the aforesaid Annual Contributions Contracts.
Quotation
frohti
an
opinion
v
of the Hon. Herbert
Brownell, Jr., Attorney General of the United States,
V
The President
.to
of the
United
States,
'
dated
"IN
May 15, 1953:
SUMMARY, I AM OF THE VIEW THAT: * * * A CON¬
TRACT
TO
PAY
ANNUAL
CONTRIBUTIONS
ENTERED
INTO BY THE PHA' IN CONFORMANCE WITH THE PRO¬
VISIONS OF THE ACT
*
THE UNITED
IS VALID AND
BINDING
UPON
STATES, AND THAT THE FAITH OF THE
UNITED STATES
BEEN SOLEMNLY
HAS
PLEDGED TO
THE PAYMENT OF SUCH CONTRIBUTIONS IN THE SAME
TERMS ITS FAITH HAS BEEN PLEDGED TO THE PAY¬
MENT OF ITS INTEREST-BEARING OBLIGATIONS."
1 Public
Housing Administration.
3 United States
1937,
Interest
as
llbuslng Act of
amended.
Exempt, in the opinion of counsel to the Underwriters, from Federal Income Taxes by the provisions of the
United States Housing Act of 1937, as amended.
.
Legal Investments, in the opinion of counsel to the Underwriters', for Savings Banks and Trust Funds in New York and certain other States;
except as hereinafter noted. The Bonds of the
Municipal Housing Authority of Mayaguez, Puerto Rico
Bonds Issued
Delaware County, Pennsylvania
$ 8,895,000
Scranton, Pennsylvania
1,490,000
2%% Scale C
(Continued)
Camden, New Jersey
$ 1,655,000
Huntingdon County, Pennsylvania' '
2,855,000
located in:
are, or are
2%% Scale C
/
1,125,000
the only exception to the above statement on Legal Investments.
by Local Public Agencies which
2Va% Scale A
$ 1,515,000
are
Washington Coynty, Pennsylvania^
12,420,000
Chicago, Illinois
5.775,000
K.
t"
2,245,000
Cook County, Illinois
24,740,000
Hawaiif
V
J
Detroit, Michigan
24,570,000
Winona, Minnesota
New York, N. Y.
2 Wo Scale D
i
2%% Scale B
$ 4,390,000
+ The
t-
5,605,000
Syracuse, New York
$
8,555,000
Patersoiv New Jersey
Bonds, and the Interest thereon, of these particular Local Public Agencies, in the opinion of counsel to the Underwriters,
States of the United States or the political sub-divisions thereof under the applicable decisions of the Supreme
are
Huntsville, Alabama
1,665,000
.Mayaguez, Puerto Eicof
immune from taxation by the respective
Court of the United States construing the Federal Constitution.
Maturities, Rates and Yields
Scale
Scale
"--A
0-
el-Alte
1955
1956
1957
Scale
Scale
Scale
;
Scale
B
C
D
A
2%%
2%%
2 »/4%
2%%
Scale
B
2%%
-
2'/<%
Scale
Scale
C
D
A
B
C
D
2 Ys%
23/,%
2'/2%
2%%
23/,%
23/,%
2'/2%
2.05%
2.10%
1985
2.30%
2.40%
2.45%
2.10
2.15
1986
2.35
2.45
2.50
2.55
1987
2.35
2.45
2.50
2.55
1988
2.35
2.45
2.50
2.55
.80%
.80%
1965
1.50%
1.50%
1.60%
1.60%
1975
2.00%
2.00%
.90
1966
1.55
1.55
1.65
1.70
1976
2.05
2.05
1.00
1.00
1967
1.60
Scale
B
2 VA%
.90
1.00
1.00
Scale
A
2 Vz %
.90
.90
Scale
Scale
Scale
D
2 3/a %
.80%
-.80%
Scale
Scale
C
*
1.60
1.70
1.75
*
1977
2.10
•
2.10
1958
1.10
1.10
1.10
1.10
1968
1.65
1.65
1.75
1959
1.15
1.15
1.20
1.20
1969
1.70
1.70
1.80
1960
1.20
1.20
1.30
1.30
1970
1.75
1.75*
1.85
1961
1.25
1.25
1.35
1.35
1971
1.80
1.80*
1.90
1962
1.30
1.30
1.40
1.40
1972
1.85
1.85*
1.95
1963
1.35
1.35
1.45
1.45
1973
1.90
1.90*
2.00
2.05*
1983
2.25
2.35
1964
1.40
1.40
1.50
1.50
1974
1.95
1.95*
2.00
2.05*
1984
2.30
2.15
2.40
2.20
2.50%
1.80
1978
2.15
2.15
2.20
1.85
1979
2.15
2.20
2.25
2.30
1.90
1980
2.20
2.25
2.30
2.35
1.95*
1981
2.20
2.30
2.35
2.40
1992
2.45
2.55
2.60
2.65
2.00*
'
1982
2.25
2.35
2.375
2.45
1993
2.45
2.55
2.60
2.65
2.40
2.45
1994
2.45
2.55
2.60
2.65
2.45
2.50
1995
2.25
1989
2.40
2.50
2.55
2.60
1990
2.40
2.50
2.55
2.60
1991
2.40
2.50
2.55
—
—
2.60
2.60
—
and accrued interest
*
The Bonds of each issue will be callable ten years
Yields
from their date
at a
to
first call date
on
Scales B and D
on
maturities indicated.
call price of 104 and accrued interest, and thereafter, at the times and call prices,
as
stated in the Offering Prospectus.
'
1
'
I
The Bonds are being offered, subject to award, when, as and if issued and received
by us, and subject to approval of legality, with respect to each issue, by bond counsel to the underwriters. The
offering is not made hereby, but only by means of the Offering Prospectus, copies of which may be obtained from such of the undersigned and other underwriters as are registered dealers in this State.
•
.
Blyth & Co., Inc.
Drexcl & Co.
Phelps, Fenn & Co.
Eastman, Dillon & Co.
A. C. Allyn and Company
'
Goldman, Sachs & Co.
Harriman Ripley & Co.
Shields & Company
Smith, Barney & Co.
The First Boston Corporation
Merrill Lynch, Pierce, Fenner & Beane
Coffin & Burr
Estabrook & Co.
-
Ira Haupt & Co.
Stone & Webster Securities Corporation
White, Weld & Co.
Bvrne and Phelps
;
Reynolds & Co.
*
.
a
Incorporated
r
Hirsch & Co.
Francis I. duPont & Co.
McDonald & Company
L. F. Rothschild & Co.
Union Securities Corporation
Hornhlower & Weeks
Lee Higginson Corporation
Bacon, Stevenson & Co.
Hemphill, Noyes & Co.
Bfaun, Boswoith & Co.
F. S Moseley & Co.
Schoellkopf, Hutton & Pomeroy, Ire.
American Securities Corporation
Kean, Taylor & Co.
Eldredge & Co.
Wm. E. Pollock & Co., Inc.
Tucker, Anthony & Co.
Dean Witter & Co.
Roosevelt & Cross
F. S. Smithers & Co.
Geo. B. Gibbons & Company
Gregory & Son
Incorporated
Folger, Nolan—W. B. Hihbs & Co. Inc.
Incorporated
Incorporated
Laurence M. Marks & Co.
R. S. Dickson & Company
Incorporated
Incorporated
March 3,1951:
Bear, Stearns & Co.
Incorporated
^
First of Michigan Corporation
R. W. Pressprich & Co.
Incorporated
Equitable Securities Corporation
,
Paine Webber, Jackson & Curtis
'
I
Alex. Brown & Sons
Incorporated
•
Lehman Brothers
.
Wood, Struthers & Co.
Baxter, Williams & Co.
Hallgarten & Co.
E. F. Hutton & Company
Incorporated
A.
^
W. E. Hutton & Co.
Incorporated
William R. Staats & Co.
Stern Brothers & Co.
Stroud & Company
Chas. E. Weigold & Co.
Incorporated
Incorporated
i
7
8
(934)
The Commercial and Financial Chronicle
..
.
Thursday, March 4, 1954
Marathon
,
—Stein
send interested parties
to
&
Life
tan
New
Minute
Life
Insurance
Insurance
Co.,
1
Co.—Annual
Report—Metropoli¬
Madison Avenue, New York 10,
the following literature:
Accessory
Industry—Report of findings as
centers of the automobile, automobile
and rubber industries—Stern, Frank, Meyer & Fox,
Maid Corporation
Union
Bank
Bear
or
industrial
average
Insurance
Dec.
York
Noranda
14, Calif.
N.
Ohio
1953—Geyer
New York 5, N. Y.
Y.
&
for
figures
months
12
Wall
Co., Incorporated, 63
Chas.
Tool
Industry
—
with
Data
111
Bank
Stocks
Year-end
—
analysis of 17 bank stocks—Laird,
Broadway, New York 5, N. Y.
comparison
120
&
&
Common
Stocks—Comparative figures—G.
Co., Inc., 70 Pine Street, New York 5, N. Y.
and discussions of Investment Trusts
A.
in Japanese
E.
Samuel
&
*
Aluminium
*
*
Inc.—Analysis—May &
Street, Boston 10, Mass.
Street,
Dairies—Bulletin—R.
West,
Snyder Tool
Limited—Data—Ross,
Enka
Corporation—25th
&
Co.,
330
Tele-Trip
Toronto,
Ont.,
&
Chemicals Corp.
Broad
Dynamics
—
Analysis
Russ Building, San Francisco
4, Calif.
Continental
Baking—Memorandum—Hirsch
Street, New York 4, N. Y.
—
Casualty Company
Company, 135 South
available is
an
La
—
Salle
York 5,
Detroit
tion,
Electric
Co.,
are
25
memoranda
Oil.
analysis of Continental Assurance Company.
&
Co., 44 Wall Street, New
N. Y.
Company—Annual Report—Treasurer, Detroit
Company, 2000 Second Avenue, Detroit 26, Mich.
Industries, Inc.—Bulletin—deWitt Conklin
100 Broadway, New York
5, N. Y.
Bond
&
Share
Co.—Review—Sutro
Broadway, New York 5, N. Y.
of Western
Pacific
Also
Bros.
available
Organiza¬
is
Co., 120
a
review
Telephone
&
Telegraph
Herzfeld & Stern, 30 Broad
Corp.—Memorandum—
Street, New York 4, N. Y.
Lynchburg Foundry Company,
Inc.—Analysis—Strader, Taylor
& Co., Inc., Peoples National
Bank Building,
Lynchburg, Va.
In
Virginia Turnpike
Financing Near
Bond
By EDWIN L. BECK
Bear, Stearns & Co. and Byrne
Phelps are negotiating the
of $37,000,000 West Virginia
Turnpike bonds and present indi¬
and
Co.,
44
King
cations
that the offering will
are
be made March 8.
Investment
Straus, 50
The issue is dated March
will
is
mature
in
1,1952,
December, 1989, and
to the original of¬
addition
fering
Burr, Incorporated,
$96,000,000 3%% sold
ago and is of the
of
about two years
series.
same
29-30, 1954
(St. Louis, Mo.)
issues
under $500,000
regulation, and makes
for
easier
Dealers
make
to
about
May 7, 1954 (New York City)
would exempt new
measure
from SEC
it
St.
Louis
Municipal
Group annual outing.
a
securities
available
bonds
The
tax
are
York
annual
dinner
at
tive date of
the
On
March
2,
U.
Senate,
a
calendar call, without
being
brought to vote passed a bill providing for amendments of Secu-
on
May 9-11, 1954 (Dallas, Tex.)
Texas Group Investment BankAssociation 19th Annual Meet-
ers
ing
^oard
tion
of
of Governors of AssociaStock
Exchange
Firms
meeting.
cial
(Chicago, 111.)
Federation
Analysts
of
Societies
Finan-
Conven-
tion at the Palmer House.
Annual
Convention at
lt also makes a number of other
minor liberalizing changes in the
the
11, 1954
Municipal
(New York City)
Bond
York 21st annual
Club
of
Virginia
Factors responsible
construction
seen
maximum
Opening
Aug. 1, this summer.
costs
for increased
unfore¬
were
and rock slides, grow¬
earth
right of
of
costs
way,
basic
addi¬
material
removal preparatory for later
four-lane building, and litigation:
The
is
issue of bonds
wholly from tolls and
additional
secured
Besides
issue
exempt
limit,
raising
the
the
effective date of
\
from
artery
Lakes
central
the
through
area
Ohio,
Virginia, Virginia and North
Carolina
to
rich
the
Piedmont
of the Carolinas, Georgia
Florida.
area
bill
also make it easier for
securities salesmen to make available information about a new
before
traffic
in
and
Enabling legislation is in process
Virginia for a turnpike com-
mission
in
that
Carolina and
State,
Ohio
are
and North
legally in
position to build connecting thruways.
During a calendar call a bill is
The badly needed north-south
Passe<* simply by number provid- turnpike seems at last to be
Senator objects. The lack
no
opposition
of the
sage
indicates
easy
pas-
the House^
measure m
emerging
jn^0
a
un(jer
from
the
dream
stage
fast-approaching reality
the
leadership
of West
New
outing at West¬
Country Club and Beach
Club, Rye, N. Y.
chester
laws.
w°ul(?
of
June
with
artery
grades of less than 5%.
is set for
West
ing
Jasper Park Lodge.
West
rugged
traffic
sion regulation.
registration.
Investment Dealers' Association
the
Great
issue
June 9-12, 1954 (Canada)
to be
mountains providing a high speed
issues exempt from full
Securities and Exchange Commis-
securities
May 16-20, 1954
the sale
are
cities and Exchange Acts.
other revenues from operations,
The bill raises from $300,000 to
This newest toll turnpike wiH
$500,000 the amount of new se- be the first link in a north-south
curities
May 12-14, 1954 (Boston, Mass.)
of
tional
S.
issue
complete the 88-mile proj¬
cuts through the heart
ing costs of
registration.
the
from
funds
the $37,000,000
ect which
salesmen
information
issue before effec¬
new
Security Traders Association of
New
of
Laws OK'd by Senate
New
Field
security
Apr.
of Canada
Lea Fabrics, Inc.
Foremost Dairies,
Inc.—Memorandum—Paine, Webber, Jackson
& Curtis, 25 Broad
Street, New York 4, N. Y.
International
W.
used to
Railroad Co.
Company—Analysis—Aetna Securities Corporation,
Broadway, New York 6, N, Y. Also available is a memo¬
on
&
Mass.
EVENTS
National
&
Foote Burt
randum
Daly
Amendments to SEC
Broad
Edison
Edison
Eastern
Kaiser & Co.,
Analysis — William Blair &
Street, Chicago 3, 111. Also
Company—Bulletin—Grimm
A.
Policy, Inc.—Circular—Heimerdinger &
Street, New York 4, N. Y.
W aldorf-Astoria.
&
Also available
Tennessee Gas Transmission and
Sunray
Continental
general partner.
$37 Million Issue of
Additional
Corpora¬
Report—American
—
two years as a
&
9,
on
Report — Troster,
Singer & Co., 74 Trinity Place, New York 6, N. Y.
California School District Bonds
for
forming
Vought & Co., later becoming its
President. Recently, he had been
with Stieglitz & Co., for almost
161
Canada.
U. S. Steel Corp.—Memorandum—Coffin &
60
State
Street, Boston
Bay
data
are
Corporation, 206 Madison Avenue, New York, N. Y.
Attapulgus Minerals
re¬
sponsible
Arnold Feldman
Co., 115 Broad¬
available
Annual
was
exempt.
&
Knowles
Also
Gannon, Inc.,
Engineering Co.—Card memorandum—Baker,
Simonds & Co., Buhl Building, Detroit
26, Mich.
Economy
tion, General Motors Acceptance Corp. of
Canada, Ontario
Jockey Club Ltd, Canadian Investment Fund, and Power
Corporation of Canada Ltd.
Enka
Co.,
He
part
sale
COMING
Telephone Co. of Canada, General
1920.
in
Dividend
Company, Norfolk 10, Va.
*
Street, Toronto 1, Ont., Canada.
American
Quarter Century
Williams,
New York 6, N. Y.
way,
of
business since
brief analysis of
a
Company—Analysis—ask for report T-31—
Co., 10 Post Office Square, Boston 9, Mass.
Silverwood
foreign trade.
Supermarkets—Bulletin—Ralph
111
list
is
Seaboard Air Line Railroad Company—1953 Annual
Report—
W. F. Cummings,
Secretary, Seaboard Air Line Railroad
Railroad Income Bonds—Comparison for 1953—Vilas &
Hickey,
49 Wall Street, New York
5, N. Y.
Cross
a
issue
same
Broadway, New York 6, N. Y.
Devonshire
Industry
on
Airlines and
Lerner &
Scott
New York 6, N. Y.
Also in the same issue are analyses of
the Electric Wire and Cable Industry and Spinning
Bell
Also in the
Riverside Cement
Pulp Industry in Japan—Analysis in current issue of Nomura's
Investors Beacon—Nomura Securities
Co., Ltd., 61 Broadway,
and current
5, N. Y.
the
inve stment
Brief
—
Remington Rand, Inc.—Analysis—Van Alstyne, Noel &
Co., 52
Wall Street, New York 5, N. Y.
Quotation Bureau Averages, both as to
yield and market performance over a 13-year period—
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, New York.
Saxton
Co.
Corporation of America—7-Page Analysis Plus Current
"Investment Report"— $2.50—Dept.
R-K, Arthur Wiesenberger & Company, 61 Broadway, New York 6, N. Y.
and
Meeds,
Bissell
connected
with
Street, New York 5, N. Y.
&
the prin¬
cipal, has been
Hemphill, Noyes & Co., 15
—
Feld¬
Mr.
man,
Radio
used in the National
Utility
Memorandum
Sound Power & Light Corp.—Analysis—Ira
Haupt &
Co., Ill Broadway, New York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
Public
M.
Puget
Municipal Bonds—Bulletin—New York Hanseatic Corporation,
120 Broadway, New York 5, N. Y.
City
—
Public Service of New Hampshire—Review—Ira
Haupt &
reference to
Niles-Bement-Pond—Stanley Heller & Co., 30 Pine Street,
York
Wm.
—
Avenue, New York 17, N. Y.
Payers.
New York 5, N. Y.
New
March 1.
Memorandum
—
an¬
nounced
Corp.—Progress Report—B. S. Lichtenstein and
Wall Street, New York 5, N. Y.
Co.
American
N. Y.
particular
Co.
Hentz
99
Pfizer
York
rities Co., Ltd., Ill Broadway, New York 7,
Railroad
at
Broadway,
New York,
analysis in the current issue of
"Gleanings"—Francis I. du Pont & Co., 1 Wall Street, New
ended
Street,
Investment Opportunities in Japan—Circular—Yamaichi Secu¬
Machine
Oil
Broad
Stocks—Comparative
31,
Oil
Company,
1949 and 1954—Dreyfus & Co., 50 Broad¬
4,
Central
located
120
was
plan—H.
in¬
new
Company, to
—
Rosenbaum & Co., 285 Madison
Market?—Comparison of stocks in the Dow Jones
New
way,
Los Angeles
Bldg.,
York
the
be
Pacific—Analysis of reorganization
Co., 60 Beaver Street, New York 4, N. Y.
New
result of trip through
Bull
of
Analysis — Nauman, McFawn &
Company, Ford Building, Detroit 26, Mich.
&
accessory
formation
vestment firm of Arnold Feldman
York.
Missouri
Automobile-Auto
Formed in New York
Boyce, Starks Building Arcade, Louisville
The
Metropolitan
will be pleased
understood that the firms mentioned
Bros.
2, Ky.
Recommendations & Literature
is
Arnold Feldman Co.
.
Maysville, Ky. General Obligation Floodwall Bonds—Bulletin
Dealer-Broker Investment
It
Corp,—Memorandum—Smith, Barney & Co.* 14 Wall
Street, New York 5, N. Y. i - *
f
McGleary Announces
Formal Opening
v^a
G, Fla. —
McCleary & Co., Inc., member of
New
York
Stock
On Int.
Exchange,
the formal opening
has announced
In
of its office at 556 Central Avenue.
The
firm
new
Florida
is
successor
Securities
to the
Co.
Two With Sutro Co.
(Special to The Financial Chronicle)
SAN
FRANCISCO,
Calif.
Borovoy and John W.
Robert
S.
Shaw
have
with
Sutro
Street,
gomery
New
Stock
become
&
York
Co.,
407
members
and
Exchanges.
i
associated
,
San
Montof the
Francisco
on
Of Girard L.
ST. P E T E R S B U R
the
.
A Correction
the
Views
Spencer
Rate Trend
article
on
the
"Supply
and Demand for Investment Funds
during 1954," in the issue of the
"Chronicle" of Feb. 25, on page 10,
it
was
stated in the headline
sec¬
tion that Mr. Girard Spencer,
the
author, saw "little prospect of any
lowering of interest rates." This
an error, as Mr. Spencer's, statemerit
was
that his
figures indicate
any in-
there is 'little prospect o£
a
and
distinct possibility
of
further lowering in the level of
crease
a
interest rates,"
i
-
Number 5304
Volume 179
The Commercial and Financial Chronicle
...
(985)
the face of the tube,
electrically,
therefore, the term dynamic con¬
election
vergence.
and
sweeps across
By E. A. HOLSTEN*
it
it has to be corrected
Color Television
major
This
simple glossary of terrps
that you will be hearing and us¬
ing more and more as you move
Motorola, Inc.
General Merchandising Manager,
Predicting color in television will come late in 1955, and will
used along with the present black-and-white system,
Mr. Holsten describes the technique of color television and
reveals color television problems from standpoint of both
manufacturer and broadcaster.
Mentions high costs today of
we
to
color television sets, and points out television broadcast's need
of trained mechanics to do the servicing.
Foresees great ex¬
of commercial color television
pense
and concludes programs
the
months,
most
and
And
will emanate mainly from New York
Hollywood.
probably
in
read
the
color
probably many of
developed some con¬
in
your
minds because
you have had no actual operating
the
time
that
territories,
you
the
want you
we
possible
them correctly.
to
confident that Motorola
are
occupies a very strong engineering
position in this new color art. We
have
been
color
working
since
early
April, 1950
we
operating
the
color
forward
intensely
1949
on
in
and
installed and began
first
in
scanner
flying
the
spot
industry
about
the
from
Triads: A triad consists of three
of
phosphor; namely, red,
blue, and green, positioned in a
triangle, and this pattern is re¬
indenti-
Color
This identifies the
Pack:
for
pictures
in the
use
and
test
patterns
developed, evaluated, and field
tested by NTSC, Motorola engi¬
neers
members of every im¬
were
committee
portant
in
pated
and
field
every
con¬
ducted.
Motorola's performance was also
the best at the FCC show¬
ing in New York last October, so
Motorola engineering is welj pre¬
pared to meet this new challenge
the
coming of color TV,
you will begin to hear many new
terms that you have never heard
sound
may
should
ing
be
you
first,
at
but
helpful in understand¬
the
better.
some
to
color
Let's
business
down
run
of them.
merely
designations
position of each
tron guns
a
that
the
of
of the elec¬
one
located to form
are
triangle in the neck of the tube.
Each gun shoots the same kind
of electrons at the screen, but
are
controlled that those
so
ing out of
one
a
color of
screen
the
red, blue
they
com¬
given gun only hit
phosphor dots
and cause it to
of
one
on
light
the
the
could
phosphor
as
Aperture
forated
color
phosphors
the
This is
plate
with
or
the
metrically positioned
the
phosphor dots,
from the red gun
red
.
guns
used
set,
the
*A talk
of
retail
green
a
per¬
screen,
holes
so
as
or
black
a
and
white
black and white trans¬
a
and
look
If
at
j^ou then moved
each
very
with
good
Since
all
spectrum
No single
other
be
can
relation
the
each
to
shades
of
served
them
black
other
gray
and
the
white,
or
primary
in
the
developed
big
the
in
the electrons
can
only strike
guns
the
television
Houston, Texas, Jan. 21, 1954.
green
a
group
the
mechanical
picture
a
inch
All
of these things make for a
high manufacturing cost, at
least in its present stage of pro¬
duction.
is
tube
next
the
is
the
basic
theory of operation
type
difference is exhibited
in
the
in¬
ternal
shown
on
the
other
two,
and probably
tion
for
be
can
accomplished by
the
in¬
on
At
cross
the
Of
three,
pleasing to the
the
bottom
section view
ative
position
RCA type of color tube shows the
mask
and
greatest immediate promise,
together
we
feel that the
pri¬
of
a pillow shape which
though it is very thin and
fragile, develops rigidity through
the curvature
slide, the
the
plate
completely
aperture
CBS
assembled
tubes
in
like to discuss these
greater detail
some
with
slides.
tube—so
on
the rest of the tube envelope.
The RCA
the
of
good
the
tube
fine detail in pictorial
RCA
works, and
below
that the
the tube face
This
definition,
also
because
process
picture
just
quarter of
a
as
on
monochrome
announcement is neither
an
offer to sell
nor
a
solicitation of
an
amount of each
This
is
offer to
buy these securities.
The offer is made only by the Prospectus.
New Issue
$50,000,000
colors that is used in the
the green, or
(CANADA)
of the
primary
picture.
For example, if you have an ob¬
ject showing a true red and the
exact red of the primary color,
you would have the greatest de¬
gree of red saturation; the same in
one
Province of Ontario
the
Dated March 15, 1954
Due March 15, as
shown below
$20,000,000
2.60%, 2.65%, 2.70%, 2.75% and 2.80% Debentures
blue.
Due $4,000,000
annually 1960-1964, inclusive
But to get
all of the other colors
in the spectrum and delicate mix¬
tures
of
tones,
them
such
in
as
Price 100 and accrued interest
flesh
three
the
primaries are
diluted and mixed to accomplish
that color
$30,000,000
tone, therefore, their
or
degree of saturation is reduced.
three
a
3Vs% Debentures due 1980
Price 99% and accrued interest
gun
to
it must be focused accurately and
individually.
Copies of the Prospectus
dealers
as
may
are
obtainable from only such of the undersigned and such other
lawfully offer these securities in the respective States.
Then, after that the beams of all
three
guns have to be converged
the same hole in the mask, so
that
all
each
and
colors
triad,
so
transmission
that
it
or
on
and
shades
true
color
Harriman
Because
the
Wood, Gundy & Co., Inc.
i
The First Boston Corporation
Smith, Barney & Co.
receiver
black
not
greens,
The Dominion Securities Corporation
A. E. Ames & Co.
Incorporated
get into
purples,
McLeod, Young, Weir, Incorporated
red, etc.
convergence
angle
dealers,
is constantly
Ripley & Co.
Incorporated
viewing
essentially
does
of
in
element,
black and white
a
remains
white
weird
out
picture
that when you are
monochrome,
and
come
or
changing
as
the beam
March 3,1954.
on
slightly
some
million aperture holes
Continued
composition;
a
they have
a
This
of
appears
it does
as
permits
larger picture
resolution, and, therefore, has
or
a
today's monochrome tubes.
type of tube has the
characteristic
v
On the upper part of this slide
' eliminated
developed
phor dots to the inner face of the
tionship of it to the tube face and
I'd
has
pack, and the general rela¬
the
color
1954.
shell
applying the little triads of phos¬
make
best
of
as an egg
complete
to
marily because it will be in the
supply during the first half
just
does, and the heavy color plate is
shows the rel¬
of
color
section View of it.
cross
even
eye.
the
is
formed into
stant, the two in combination
develop a full color picture
that is
as
The same three gun structure is
used, but the aperture mask is die
can
the
structure
more
Saturation:
the
as
of
tube; in fact, it is
designed to be completely inter¬
changeable with it. The greatest
by
ob¬
object itself.
Color
re¬
colors, and since brightness which
is the other important considera¬
a
have
noticeable
around one edge of an object in
the picture than in the center of
usually
one
cently announced by CBS-Hytron.
This tube uses exactly the same
the ability to reproduce extremely
mis-registry of colors in printing
such as in the Sunday color sup¬
plements of the newspaper as you
the
mono¬
high ratio of good points
bad as to completely outshine
such
simple diagram of how
Fringing: This is merely
is
area
12 Vz
tube
struc¬
tube,
receiver.
Color
be¬
tube
combinations of the three primary
you see a
on
well
of
of the three has
one
the
past
located
face
very
the
to
and
we
as
in
color set
a
the
of
is
RCA
colors
with
yet the envelope
required is 15 inches in diameter.
the blue gun, blue dots.
connected
has
the
assembled
consumed
this
and
chrome
to
eye
be
front
space
The
your
con¬
degree of mechanical
equivalent of
masked
or
some
problems
help of
Chroma: Chroma in
is
geo-
related to
by Mr. Holsten before
radio
call
to
mission.
on
phosphor dots, the electrons
from
have
we
using this term to
identify the type of set that we
a
•
and
also
some
tube, each gun is
light up only its
respective color of phosphor dots,
located between the guns and the
.
posi¬
gun
being shadowed,
by the metal screen.
are
we
supposed
A, B, and C.
Mask:
could
the
red
to
Dynamic Convergence: Since in
and
or
metal
type of
as a part of the
in the Lawrence type
of tube which I will discuss later.
easily be designated
and 3,
the
you
same
dots
a
in
up
or green.
just
No. 1, 2
is
primary colors,
three
Therefore, the color exists only
in
as
if
be
can
example,
a
It
the
with
ture
in the
has
unusual
of
6u0,-
aperture mask, you
would see nothing but red phos¬
phor dots with the blue and green
it.
mask that is used
little
a
through
Red, Blue and Green Gun: These
are
tion
eye
any
and, therefore, the viewing angle
is restricted.
Also, there is a lot
anu
con¬
or
it
that
For
very
all quite descriptive and
are
This
Mask:
color pack
It
they
mask
triads
unfortunately
but
them
has
in
are
than
heavy, complicated
weighing six pounds
accuracy.
.
that
means
your
through
have all observed.
before and they
mysterious
This
place
market.
mis-registry of the colors and it
shows up in a similar fashion to
New Terms Used in TV
tubes
of
pack is
hind
the position of the green gun,
you
would see only green dots, and
time
present
of
three
aperture
number
repeated
about 200,000
color receivers introduced
of color television.
With
these
the
and
an
entire pic¬
tne
are
inside of the color tube.
colors
among
of
in
same
is
pattern
ewer
There
000 color dots.
or
other fellows
today
some
bad.
assembly,
emitted from any gun, at any in¬
partici¬
test
Each
area.
sisting of three dots eaco,
tube.
the
this
hearing and seeing a lot of pub¬
licity put out by the exponents of
each, and particularly since you
will be seeing all three types in
Monochrome: Now that
During the entire period that
compatible system was being
the
chromatron
the
type of tubes
suppiy
are
color
creasing the number of electrons
laboratory.
the
Lawrence,
the
and
holes
CBS-Hytron
on
their
sidered
a
continuously
the
ex¬
manu¬
Along with these good qualities,
the
on
the next several months you'll be
Focus
color
called
there
ture
you
start
that
greater
illuminate
to
mass:
assembly of the color
plate, the aperture mask and the
frame
which
supports
and
properly separates them and this
whole assembly is finally placed
mechanical
(other than RCA).
A color scanner is a very large
piece of equipment that transmits
sometimes
to
one.
the
three gun tube.
The third is the
serious
Tube: This
Gun
is
second
head
so
color dots are arranged
triangular pattern, or triad,
consisting of a red, blue and green
most about.
The
a
will observe in the dia¬
aperture
dot
on
an
other.
in
important types
known today.
points,
fies the type of color tube where
three
guns are used
instead of
give
can
though it is
difficult tube to
facture, tuey have had enough of
plate.
coior
even
tremely
These
engineers;
three
are
are
one
Three
others
The first is the RCA three gun
which you have heard the
A
picture element.
I
and
aperture mask,
an
tiny dots of phosphor
color plate.
being.
like to
Its
three
oi
the
color picture tubes.
peated all
over on the color plate.
single triad of dots is called one
would
the
guns,
consist
the
tube
mask and
to have
information
answer
We
you
questions for your cus¬
many
tomers and
all
now
actually
operating in your
will have to an¬
have color sets
swer
positioned
inch
and
information
There
flat glass
a
I
the
that
This is
one-half
aperture
having the red, blue and
green phosphor dots applied to it
in regular geometric patterns.
plate
dots
We realize also that from
until
dots.
Color Plate:
experience of color with which to
compare.
blue
the
the
with the help of these
now
terms,
all
dots, electrons from the blue gun
trade
on
press
and
have
fusion
of
couple
articles
public
television
them
have
you
of the
press
last
servicemen
of
Types of Color Television
limiting programming
new
the
most
at least for the time
and
During
leave
can
elements
gram, three guns are assembled
in a triangular cluster and shoot
their beams
through the holes in
but
course, are many, many more,
section of the tubes.
cross
As you
into color will help you in an¬
alyzing and discussing color pic¬
tures and picture tubes. There, of
be
a
9
page
40
10
The Commercial and Financial Chronicle
(986)
Austrian
The
to
Shape of Things to Come
which
leadership
are
can
States
is
Steel
pro¬
lifted
assemblage
an
that
repre¬
sents the
ing
est
of
user
steel
the
in
nation.
have
We
some
im¬
portant opera¬
tions
here
on
West
the
Coast which
perform¬
are
ing
an
out¬
standing j o b
in keeping
with the
pace
Clifford F. Hood
the
West.
There
acteristic inherent in
ceives
is
char¬
no
man
that
re¬
wider expression than the
to
build.
That
is why
I
desire
looked forward to this opportunity
to
talk
to
America's
Associated
General Contractors. Some of us
follow occupations in manufactur¬
ing, merchandising and servicing,
others
arts.
the
the
pursue
But
all
of
professions
these
fall
or
within
category of what might be
acquired characteristics,
called
which
trained
are
tion.
into
us
or
fit
of
Many
personalities.
ever,
sion
a
person
to
the
give
can
oldest
expres¬
instinct
to
buildings,
bridges
the
ica's
floors
parlor
merely foretold
not
trait.
It
from
the
ond
essentially
has
been
a
beginning.
an
acquired
part of
In
the
it is here with
and
array
*An
Annual
first
address
by
city.
Many
Mr. Hood
Convention
of
the
at
us
days
come—
in
now
an
that somehow astounds the
creations.
like
This
peated
will
performance
and
over
be
re¬
again.
over
To¬
eration to tomorrow's engineering
and construction accomplishments.
The
bo.y who constructs a bridge
building on the living room
floor
today may well be con¬
structing an atomic reactor to¬
or
a
the
morrow,
or
road
the
in
summer, may
ways
across
Actually,
and
lad
who
digs
a
flower garden this
well be laying high¬
the nation in some
summer.
despite
the
wonders
so-called culture of the past,
the
world had
possible
trated
move
sec¬
won¬
the 35th
Associated
General Contractors of America,
Inc., Los
Angeles, Cal., March 1, 1954.
basis
seen
on
a
little of what
until
highly
we
that makes
us
mind,
started
who
land.
hotel
was
I
inquisitive
Some
read,',an account of
can
unless
contributed
you
billion
worth
activity in
last
economy
history.
sults
But
year.
have
been
well
ago,
by
they
merely
remain
what
a
no
doubt to
economic
should
new
a
kimos,
tected
announcement
is not
Enormous Expansion of the
With
of
which
say
Mounted
got their
off
they
in
the
And
this
infusion- of
research
•
~
•
will
con¬
around
the
coming year. These
billion
$34
if
their
is
the
ex¬
estimators
calculations
1953,
this
ap
figure
could well approach $36 billion.
Prospects Are
In other
that
our
of
on
snows
themselves into
the
early
days
If
a
be fond of
one
are
on
good.
page
At
53
buy these securities.
\
the
still
youth
nent
maturity,
of
his
has
them
with
by
to
as
a
oil, iron
other
and
Korea
ended,
made of vast
were
of
the
effort
re¬
uranium,
ore,
minerals.
and
essary to establish
industries
Then
consequent
that
created
to
important
the
meet
new
defense
needs of the free world.
While
under
Canada
to look
these
bound
was
suggest to
conditions,
advance, I
to
that it is necessary
you
deeper for the full expla¬
remarkable-progress
nation of the
that
has
been
to
it tnan
more
made.
circumstances.
ple
have
cards,
a
was
The Canadian peo¬
held
but in
There
>
favorable set of
a1
hand
good
of
judgment they
my
have also played them well.
future.#
I
who
of
a
has
up
by
British
influenced
door
by
the
big
boy
south,
the
to
and
place
next
you
would
describe
with
as
a
Midwest accent.
,1
reasons
of
shall
thumbnail
economy
on
down
the
this
Canadian
into three parts:
(1) The
enormous
talk
brevity and clar¬
break
reasons
for the present
expansion of the Cana¬
dian economy.
cago
Association
dustry
of
and
Chicago,
the
in
of.Commerce
and
In¬
Export Managers Club
Chicago,j 111., Feb. 23, 1954.
has
those
stake
none
of
us
actually " taken
countries.
But * I
my
ords established by
people,
within
«
make
Canada, where
their
the limits of
own:
plans
the law.
These
terms
"free enterprise"
"competition" are hackneyed
phrases. I use them at this time
and
because I believe that
they " do
describe pretty
accurately the sort
of conditions that have
prevailed
in Canada in recent
years. I
express
might
the point I have in mind
in another
way.'The
expansion of
this country has not been
directed
by governments. It is;not the
sult of subsidies
ulation.
house"
"An address by Consul General Cole at
the World Trade Conference of the Chi¬
free
reputation that
they have not surpassed the rec¬
manhood
without
a
split
personality. When he does reach
it, he
is generally a bilingual
English
of
Curtain,
what
would
reach
speaking
these
wellwithin
five-year plans. Because of
Iron
knows
trying to
that
material
attained
enterprise
Much is
by Communist countries of
their
the
veins, brought
parents, strongly
in
been
free, competition.
made
youth with
a
have
framework
and
have still the problems
underline
advances
being
firmly planted in mid¬
we
would
great
French blood in his
For
Before
had
the essential materials produced
by Canada and that made it nec¬
won¬
definition
man
growing youth—
a
ity,
HALSEY, STUART & CO. INC.
activity.
urgent new demands for many of
and
Economy
March 4, 1954
nickel
be
The Aspects of Canada's
be obtained from the undersigned.
of
reconversion
discoveries
probably
•
Laski's
but unkind,
feet
what
Price 102.46% and accrued interest
may
level
and
sources
the
immi¬
people
would
Harold
liberal
true
of
March 1, 1984
witn
of
efforts
own
of
Canadian,
Copies of the Prospectus
high
tion
came
emerged
conservative
air. But
Due
a
I say this because I believe that
greeted with international recog¬
there
are
some
lessons
to
be
nition abroad almost sooner than,
learned from our recent experi¬
by
Canadians
themselves.
For
ence which may be useful for the
Canadians, on the whole, are a
both
Mortgage Bonds, Series A, 3H%, due 1984
but
confidence
the
Contrary
the postwar period of reconstruc¬
matter and
over
present
new-found
a
Company
along
pessimistic forecasts, postwar,
demands,
both
at
home
and
abroad, sustained the economy at
north, with the problems of
derful,
$4,000,000
forward
to
alliteration, it is
victory of mind
cen¬
Canada's century.
road to industralization.
Canada's
of
many
The Second World War gave the
nationhood, at the time of Con¬
federation, a Canadian economist
described my country as an arti¬
ficial contrivance put together in
defiance of geography and eco¬
nomic interest and kept together
by perverse stupidity of a people
who refuse to recognize realities.
agree
Dated March 1, 1954
would be
initial» push
nation.
a
many
First
as was recog¬
that the twentieth
rearmament
In
The
country
my
'
very
Suburban Electric
beginning,
ago
tury
hoes
triumph of heart over head. To¬
day, the gawky youngster towards
Good
words, it might be said
prospects
Continued
to
in
were
favor¬
a
events.
by Sir Wilfrid Laurier, one
our
most distinguished Prime
a
Our
of
Ministers, when he predicted
and
were
awaited
conjuncture
inevi¬
was
years
centers
in
it
ing of trappers
another
penditure,
only
I would
you,
and with local
high, but the bright¬
picture
to
sense
nized
quintuplets,
living in the dreary land of the
midnight
sun.
Certainly
many
For the present, however, we movies produced in Hollvwood in
have the economic momentum of the past decade would giv<* "ome
large capital investment in new. credence to this viewpoint. Never¬
plants and equipment. There are theless, the truth of the matter
indications that projects now un¬ is that slowly but surely Canada
derway or ear-marked for the is becoming a land of tremendous
agricultural, mineral and indus¬
future will
triple the toll road
trial wealth, populated by 15 mil¬
system of the United States. Ex¬
lion people of diverse races who
penditures by industry and gov¬ have by their own efforts moulded
be
a
color consist¬
.
est
of
due
were
I
tinue to
and
from the
to
development, much of
potentialities
Dionne
as
this
great for¬
Canadian national
known
that in
able
the home
of the
is
table
jpoiice who al¬
Some of last
surge
behind
output and
the
man,
lies
ward
pro¬
Economy.
regard to point (1),
what
Royal Cana¬
dian
The future of Canada.
The Reasons for the Present
Canadian
spirit in the leadership forces
an
offer to sell or a solicitation of an offer
offering is made only by the Prospectus.
(3)
(1)
of the nation.
visiting in Switzer¬
an
The
United
depend¬
a
Es¬
by
virtue
This
the
was
ation in the spring of 1954.
some
ways
atmosphere.
for
a
basic change in the
result
ernment
of
enlarge trade with
to
(2) The existing economic situ¬
a
popu¬
popu¬
to
dians and
respects, therefore, the
past is prologue to the immediate
year's accomplishments
in
was
degree by In¬
accomplished.
was
it is but
of Great
Britain,
lated
is
measure
considered
ency
$34
In many
Ameri¬
evening, he watched
larly
recorded, - and
have been
most standards,
outstanding
terms of history,
States that Canada
may
believe^
as
In
Its graphs, trends and re¬
while the records
retention
upon
economy,
very short time since it
new
1953
depends largely
with efforts
progress
United States and other countries.
construction alone to the national
indicate
years
an
than
more
of
future
flexible, adaptable
mighty proud of the fact that
awards for the
in
ada's
The construction industry has
just completed the biggest year in
its history. We all know that you
to
Sitting in the lobby of his
one
accomplish, with
technology and technical
they work in an at¬
mosphere that is economically and
politically favorable.
This, gen¬
tlemen, is the great question con¬
fronting us.
are
constructive.
we
generation
are
Lays
present premium on Canadian dollar to: (1) continued inflow
of U. S. capital, and
(2) policy of U. S. parent companies
to reinvest subsidiaries'
profits in Canada. -Concludes Can¬
com¬
estimates of construction contract
ahead in this nation.
American
Government favors reducing internaticnal trade barriers.
mean
What will the
concen¬
There is something inherent
the
top of the piano to see
present and future.
day's erector sets, and scale-model
construction
equipment might
turn youngsters of another gen¬
the first contractor when he
the
to
themselves, even more
their first, uncertain, child¬
than
as
built
those
builders
man
generation of man, Cain be¬
came
in
age
an
the
Amer¬
on
be
found in man—the desire to build.
is
and
qastles that took shape
was
It
were
building blocks that were famil¬
iar
to
every
household.
The
In
jthe sphere of construction, how¬
who
tury will recall the simple ABC
not-too-distant
individual
our
here
us
youngsters at the turn of the cen¬
expansion and
development
of
Rhodes,
the
Aqueducts
of
Rome.
Today, the art of building
has reached its apex in this na¬
larg¬
expansion ii the Canadian economy; (2) the exist¬
ing situa'ion, and (3) the fulure cutiock for Canadian econ¬
omy.
Holds Canada's deci ions in respect to fiscal and mone¬
tary policies have worked out satisfactorily, and Canadian
enormous
Instead, he
ability and know-how
skills
of
poor
the
keyboard.
independ¬
for present
an
ent
all their
ages—the pyramids, the Colossus
salesman, in¬
deed, if I did not mention this to
a
the
COLE*
Chicago, III.
Stressing Canada's ri:e in tie economic scale as
nation, Mr. Cole discusses:
(I) reasons
the
as
the
in the future.
ducer and fabricator of steel, and
be
But
But what will all this imagina¬
tive
I
would
attracted
was
SEAMAN
Consul General of Canada,
whatj'made it tick."
have appeared in succeeding
ders
of
in
not
Socialistic scar."
a
piano,
direction.
same
Economy in 1954
By DOUGLAS
story watched, the
American boy's first interest was
and business initiative. Calls for co¬
operation, not conflict, between labor, management and capital,
and refers to attempted nationalization of the steel industry
United
the
author
free enterprise
a
The Canadian
and
.
in
U. S. Steel Corporation and
looks for increase in national population as factor in expanding
our economy.
Cites great construction projects in nation as
basis for continued business activity.
Finds new encourage¬
"as
the
of
notes
good/' executive of largest steel
Reveals construction program of
ment to
down
Thursday, March 4, 1954
.
attracted
was
pick out a
simple melody on the keyboard.
An
American
boy, hearing the
abundance of the raw materials out of
fashion the shape of things to come.
an
sit
to
was
President, United States Steel Corporation
producer points to
who
large piano off in the corner
the room. The boy's first actiona
of
By CLIFFORD F. HOOD*
Asserting "our prospects
boy
.
.
It
is
or
not
re¬
artificial stim¬
of
the
"hot¬
variety, hiding, behind
new
trade barriers and unable to
meet
world
competition. On the con¬
trary, it is the result, in the main,
"V
r
Continued
on
page
60
Volume 179
Number 5304
.
.
.
The Commercial and Financial Chronicle
(987)
,n?^ iflQve, its authors to
any
to appraise the
productive capacity of
...
Current Recession More Serious
attained
that
our
emerged
ternpt
at-
It" must be evident,
en-
present
from
however,
inventories
this
Acts, have revealed, if they did
create, a productive capacity
in dairying that has already ac-
have
not
relationship,
^^lrXr^.<llraV ernment-supported priSes' the
•commercial, and industrial plant The SChfdUle °Va™under G?r
Than Inventory Trimming
vis-a-vis the absorptive power of
the market.
By EDWIN G. NOURSE*
cumulated
.
,
surplus of one billion
a
.
,
.
.
Former Economic Adviser to the President holds present reces¬
more fundamental than mere inventory trimming;
that adequate grounds do not exist for counting on
This
announcement
Continued
on page
I
wish
to
preface
Houston
First
making
a brief observation about
Appendix D. which is the text of
means
Reorganiza¬
such
tion
Plan
No.
9, sent to the
to
buy these securities. '
Lighting & Power Company
Mortgage Bonds, 3% Series due 1989
1,1954
Due March
serious
recession, not now
foreseeable, should develop, the
Administration
has
adequate
comment
my
the Economic Report proper by
offer to sell or a solicitation of an offer
offering is made only by the Prospectus.
an
$30,000,000
Dated March
on
is not
The
second- or
third-quarter recovery, and that remedies against further down¬
turn, though impressive, are as yet unproven and quite difficult
of application.
Reviews conditions leading up to present
situation, and says what is now required is "Operation Big
Switch/'
Holds shortcoming of President's Economic Report
is that it is devoted primarily to Government fiscal and mone¬
tary policies, and not to price-making, wage-paying, merchan¬
dizing effort, investment programs, and maintenance of
consumer buying.
a
more
1,1989
Price 102.189% and accrued interest
of stopping
or
reversing"
trend, has an understand¬
ing of how to make these recov¬
a
effective, and has
Congress from
ery measures
determination
the
promptly and vigorously.
White
House
June
In
The
mes¬
In
Economic
suggest some qualifications which
I believe should havfe the
Act
ful consideration
as re¬
the
Edwin G. Nourse
the
to help de¬
Congres
strong
a
the
in
economy
United States"—strong because it
is
ecoriexpanding economy, and
free economy, a stable
a
omy,
an
humane
a
Thereupon
economy.
the President continues,
in the basic
"I believe
principles of the Em¬
ployment Act, and it is my pur¬
pose to take the appropriate ac¬
tions to reinvigorate
and make
more
effective the operations of
the Council of Economic Advisers.
Our
needs
for
advice on
equaled only
proper
economic matters are
by our needs to have the very
best advice and planning on mat¬
ters of national
I
think
I
security."
for the
speak
economics profession in
ing
may
gratification
express¬
this
over
deci¬
sion, the outstanding qualifications
of the persons selected
by the
President
this
for
reconstituted
Council of Economic Advisers, and
the
the
tee.
I
high professional quality of
President's report to which
latter
<
thought-
*
this commit¬
of
part of 1953 is much
fundamental
than
more
inventory
do not have
mere
(1)
subscribe
I
?
v:
that
and
pects
are
our
our
,
It
SCHOELLKOPF, HUTTON & POMEROY, INC.
NEW YORK HANSEATIC CORPORATION
CO., INC.
GREGORY &, SON
AUCHINCLOSS, PARKER & REDPATH
SHEARSON, HAMMILL & CO.
G. H. WALKER & CO.
INCORPORATED
VAN
ALSTYNE, NOEL & CO.
COOLEY & COMPANY
BURNHAM AND COMPANY
STERN
THE ROBINSON-HUMPHREY
BROTHERS; & CO.
IRA HAUPT & CO.
SINGER, DEANE & SCRIBNER
March 2, 1954
seems
is
many
basically sound, freed of
weaknesses that existed in
This announcement is not
1929, and with important built-in
stabilizers like unemployment in¬
an
The
nance
depends
a
solicitation of an offer to buy these securities.
.
$20,000,000
;
of full health and economic
vigor
offer to sell or
offering is made only by the Prospectus.
surance, bank deposit (and mort¬
gage) guarantees, and farm price
supports.
But these are at best
pills and poultices. The mainte¬
on
the
basic
me¬
tabolism of the body economic or
the balance between odr capacity
the whole of my alloted
mercial market.
underscpring
which
I
points
believe
in
made
it
and
sound
are
important.
But the purpose of these
panels
organized by the Joint Committee
is, as I understand it, to take a
fresh and independent look at the
1
Southern Natural Gas
produce and our ability to dis¬
tribute that product in the com¬
The fact that
inventory problem made its
First Mortgage
an
ap¬
Company
pearance
in 1953 indicates that
productive capacity had begun to
outrun the purchasing power of
consumers
even
at
a
Dated
February 1, 1954
full
and means of
to
Price 100% and accrued interest
incomes
and
indicate
lies
that
the
particularly of getting as full con¬
sideration as possible of alterna¬
statistical
surface
tive
tories
real
trouble
counted.
interpretations and emphases.
a
multitude
of
counsellors,
there is wisdom."
I
turn,
to
the
sub¬
stance
of
itself.
Its message to the Commit¬
President's Report
tee, the Congress, and the country
may be briefly
three categorical
summarized
in
(1)
The economy is essentially sound
and at the
mild inventory ad¬
going only
a
(2)
trend
of
statements:
present time is under¬
justment.
this
The
foreseeable
adjustment
gives
reasonable hope of its completion
within
a very few months and a
resumption of high-level prosper¬
ity and vigorous economic growth
before the end of the prfesent cal¬
endar year.
somewhat
are
Some
deeper
business
than
where
the
inven¬
*A
(3) If
statement
by
Prospectus
may
be obtained in
any
State in which this announcement is circulatedfrom only such
of the undersigned and other dealers
lawfully offer these securities in such State.
as may
a
trend toward
this is only a "rolling adjustment"
of
slightly unbalanced inventories.
They point with pride to the eco¬
Dr.
Nourse
panel discussion covering
appraisal of the economic
at
HALSEY, STUART & CO. INC.
i
sophistication of presentday managers who have not al¬
lowed massive ^accumulations of
excess stocks but have proceeded
promptly to trim orders and oper¬
ating schedules to the realities of
the supply and demand situation.
But this prudent correction of the
BEAR, STEARNS &, CO.
R. W. PRESSPRICH & CO.
EQUITABLE SECURITIES CORPORATION
L. F. ROTHSCHILD & CO.
BAXTER, WILLIAMS & CO.
COURTS &. CO.
SALOMON BROS. & HUTZLER
SHIELDS & COMPANY
WM. E. POLLOCK &. CO., INC.
R. S. DICKSON
& COMPANY
INCORPORATED
NEW YORK HANSEATIC CORPORATION
BACHE & CO.
GREGORY & SON
INCORPORATED
STROUD & COMPANY
INCORPORATED
AUCHINCLOSS, PARKER & REDPATH
lay¬
THE OHIO COMPANY
offs. The
SHEARSON, HAMMILL & CO.
the
the general
outlook and
DICK & MERLE-SMITH
COFFIN & BURR
INCORPORATED
dealer's, the manufacturer's, or
the supplier's position entails the
dropping of double shifts, discon¬
tinuation of overtime, shortening
of the work-week, and some
i
■
nomic
possibility of this process
engendering
further
inventorycutting to still smaller sales is
fleetingly noted in the President's
the
President's economic recommenda¬
•Economic Report, but this "does
tions, Washington, D. C., Feb. 18, 1954.
,
The
commentators
support the Presidents view that
therefore,
the
Due February 1, 1974
—
time of very
economic situation of the country
"In
Pipe Line Sinking Fund Bonds,
3/8% Series due 1974-
employment, high wages, farm
only moderately down,
quite liberal dividends and
proprietors' profits seems to me
strengthening it and
COMPANY, INC.
FIRST OF MICHIGAN CORPORATION
to
time in
COURTS & CO.
to me evident also that our econ¬
omy
they have made the major con¬
tribution.
I
could
easily spend
praise of its workmanship and in
BACHE &, CO.
1
lopg-run pros-
indeed bright.
LADENBURG, THALMANN & CO.
&, CO.
GREEN, ELLIS &, ANDERSON
the
to
economy1 has
of almost fabulous rich¬
resources
ness
fully
R. W. PRESSPRICH
WM. E. POLLOCK &
trimming, (2) that we
adequate grounds for counting on
a second- or third-quarter recov-/
ery, and (3) that remedies against
further downturn though impres¬
sive are as yet unproven and quite \
difficult of applicatidn.
proposition that
MERLE-SMITH
BAXTER, WILLIAMS & CO.
suggest (1) that the eco-/
readjustment begun in the y
nomic
"determina¬
of
DICK &
in these three propositions and to
flecting
velop
HALSEY, STUART A CO. INC.
'
.,
Em¬
ployment
of 1946
Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
non¬
refers
the
tion
spirit of completely
a
partisan economic analysis, I shall
undertake to raise some issues <r;
which seem to me to be involved
Eisen¬
hower
a.
means
Trimming
Inventory
Report), Pres¬
to
such
Recession Is Not Merely
The
1953.
this
ident
use
on
1,
sage (p. 135 of
the
to
March 2,1954
-
„rl_
_
Pounds of dalIT Products. Wheat,
Steagall Amendments and part of
the 1948 and 1949 Agricultural
Formerly Chairman, President's Economic Advisers
sion is much
11
VAN ALSTYNE, NOEL & CO.
50
12
The Commercial and Financial Chronicle
(988)
index
How to Stabilize
Purchasing Power
Income From Foreign Loans
By DANIEL K. ANDREWS
of
what
it
Country
is half of
beginning,
X
the
at
was
The American would
was.
Ernest A. Marx tells press of progress of television and elec¬
then receive $3,000, and the debtor
would repay only 15,000 x-qnits.
tronics in
nine countries of continental
Europe, as revealed
by his extended trip in that region. Sets lack of commercials
as
indicating European television will have a much slower
growth than in U. S. Reports plan for European TV network.
Exactly how much the Ameri¬
and Country X governments
would lose or gain would depend
on the rate of exchange that hap¬
,
can
Assistant Professor, Department of Commerce and Economics,
University of Vermont
prevail when the loan
Following his return to
Suppose the x-unit to
after an extended
be worth $0.25 at that time. Then country
the 15,000 x-units would be worth abroad, during
pened
Dr. Andrews proposes a plan under which foreign loans are to
fluctuate with price indices; from the creditor's viewpoint to
fluctuate with an index of his nation; from the debtor's view¬
point to fluctuate with
between the
rates
purchasing
the
the loss
,
or
The report of the Randall Commission on Foreign Economic Pol-
icy is current evidence that
motion
'
„l
of
*
vr
cial
The plan is complicated by the
fact that foreign exchange rates
policy.
majority
nearly two
one,
s s
i»
_
a
debtor
turn
i
be called
may
rt
nn
x-units
on
$375,
for
which is half of $750, the excess
amount paid by the debtor over
the amount received by the cred-
to
or
garner
more
the loan
a
debtor's
the
country,
than the
creditor receives, measured in
ties
terms of the unit of account of the
creditor's nation.
and
stitutional
It
aeainst
convertibil-
*
follows, then, that
created
must
arrangement
to
in-
some
be
the
bear
loss, if the
creditor is to be able to get more
i t y
of ex¬
change, and it
the
than
K.
D.
proposes,
Andrews
furthermore,
revamping of
to
+
its
market
exchange
the
i
sell
itor.
Only if the rate of exchange
should correspond to. purchasing
power parity would the interested
governments neither gain nor lose,
If, as in the example above^ the
rate should be more than the
parity rate, the governments
would gain, whereas if it were less
than that amount (for example,
if the x-unit were worth only
$0.15 instead of $0.25 at the time
against expropria t ion
a
would
which
purchasing power, measured
in terms of the monetary unit of
of the present
n
upon
more
to the creditor
over
r./^l 1
_
less
o n
continuance
i
*
•
variably to the purchasing power
parity theory, and, if they do not,
the
recommends
g u a r a n
a.
i
_
__
cannot be assumed to conform in-
a
commi
«
a
United
to
remaining from the 15,000 x-units
would go to the government of
Country X and the balance would
go to the American government,
country.
pro-
States
By
of
gam.
i
_
only $3,000; in other words, only
12,000 x-units would go to the
creditor, for it would take only
that many x-units to give him
$3,000. Half of the 3,000 x-units
of the monetary unit of some third
capital exports is offia
creditor
^lo not conform to
parity of each country, the creditor's gov¬
debtor's government would jointly share
power
and
ernment
of which the American
would, as stated, receive
$3,750,
If exchange
index of his nation.
an
to
tax structure
our
provide additional incentive to
invest abroad.
debtor
and
pays,
to
the gain, if the debtor pays
than the creditor receives.
Some
international
this
have
would
ernments
scheme
repaid) the two gov-
was
loss
a
to
the member national governments
-
.
he
similar
f
somewhat
represent
types
U.
as
sur¬
the
television
S.
program¬
receiver, models in
veyed the tel¬
France
evision
with very few 21
and
14 inches and 17 inches
are
inches.
electronics in¬
Belgium
dustry in nine
countries
the
on
This
European
four
country unfortunately has
television systems.
separate
continent, Er¬
nest A. Marx,
They consist of the normal French
Director of the
Lille
system
which
in
is
received
France,
the
system
which
from
Belgian-
International
French
Division of Al¬
from the French system by
len B. DuMont
negative
Laboratories,
Inc., made
available
to
A.
Ernest
Marx
the press a
capsule
account
tions,
his
follows:
as
of
This country is forging ahead
rapidly in television. Very shortly
there will be eight stations on the
air in the following cities: Berlin,
Frankfurt, Langenburg, Cologne,
Hannover, Hamburg, Weinbiet
(Heidelberg), Munich. These will
connected
by microwave
which
already
extend
of
CCIRis
re¬
the
uses
625 line sys¬
same
tem but with AM sound. As
sult
lengths
instead
ceived from Holland and Germany
and
the
CCIR-Belgian
system
observa-. which
West Germany
be
modulation
develops
using
positive .modulation, the
European system which
Eventually 22 stations are
planned in Germany and it is
p|
..
and
ming in its early stages. Most of
from Hamburg to Frankfurt.
bear jointly,
might conceivably be worked out,
which
film
trip
matured.
countries involved
two
Thursday, March 4, 19C4
.
Status of Television in Europe
while the American index is twice
what it
.
.
of
re¬
a
this
confusion, television
receivers in Belgium are presently
being made with a
four-point
switch to receive all four systems.
*
Broadcasting has
Brussels
from
started in
now
the
Palais
de
Justice but is very limited and at
.
low
very
.
,
(300 watts). The
power
studio exists in the so-called INR
building,
where
present " radio
broadcasts
originate and is con¬
nected by miscrowave relay to the
transmitter.
With
the
language
situation in Belgium also rather
sharing the gains and losses ac..
costs or ine rian
likely that Germany will go to
the commission's desire to
procording to prearrangement. But
To enter into bilateral agreeconfused, the entire television pic¬
ultra-high frequency when this
mote capital exports is a
ture in Belgium is too complex to
worthy the purchasing power plan need ments with other nations to put
occurs.
Presently, the television
one, and that its recommendations
not necessarily wait to be imple- the purchasing power plan into
analyze thoroughly or make pre¬
receivers are being made by about
work
in
the
dictions about its future.
right direction
mented by some international or- effect would put our national gov- 35 manufacturers. In
September of
whether these recommendations go
ganization, for the p r o t e c t i o n ernment into the position of a last
Today it is obvious that the
year
a
huge television ex¬
far enough is open to question
' could rest quite simply and effec- speculator, in a sense, for theoFrench in
Though it may be granted that
The
!s
to
of
program
ul
guaranties
guaranties
•
j
v^rtuaHv eliminate'from^the
field
international finan^
of
far
as
ors
are
private credhors
Tnd
™
deM-
concerned, what might be
the'riskhefromCl UiTstand^fint^of
risk, from the standpoint of
the
a
creditor, that what he is repaid
will be worth less in terms of
pur¬
chasing
than what he had
power
lent; and the risk, from the view¬
point of the debtor, that what he
must
in
will
repay
of
terms
be worth more,
purchasing
power,
than the amount he had received.
If the
purchasing
of for-
power
.
.
,
eign loans were stabilized in such
a
way
it
seems
tential
to
as
eliminate
this
risk,
probable that many
lenders
would
po-
be
willing
to enter the field of foreign lend¬
ing who now prefer the relative
safety of domestic loans, and more
foreign borrowers might be found.
In
short,
more
capital exports
would result.
The
following pro¬
in the hope of
is offered
achieving this objective.
posal
The
Essence
of
the
Purchasing
nle
pie.
"Anv^moneterva^
Any monetary amount
tied to
a
purchasing
power
-
loans
can be
index, rising as the
falling as it falls. The
price
index rises,
would
tie
price indices,
plan for foreign
the
one
the creditor and
loan
to
two
in the nation of
one
in the nation
.
This would
mone
mean
of
viewpoint
ary
that, from the
the
creditor,
of the loan
va ue
pressed in
monetary
units
the
ex-
of his
country, would rise or fall pari
passu with the index of his coun-
t'L Fr?r the sJandPoi,nt °£ !be
oebtor, the monetary value of the
in
the debtors currency,
would change proportionately as
debt,
the
index
of his country
It would
either the
make
debtor
no
or
changes.
difference to
the
creditor
whether the debt contract be
ex-
pressed in terms of the monetary
unit of the creditor's country or
the
unit
but
probably
should
of
not
Any two nations could a2ree to ing on the volume of protected
£ive purchasing power protection loans and how our terms of trade
to loans made by a
of the two
the
a
be
debtor's country,
protected contract
exoressed,
under
present world conditions/ in terms
nations to
citizen
a
the other of the two nations.
/national
equally any gain en_
repayment of a registered
loan, just as they would
jointly share a purchasing power
upon
loss.
plan would not insure
against the credit risk. It would
a
merely
give
repay
certain
a
chasing
WOuld
power,
be
that
assurance
debtor lived up to
a
purchasing
if
a
his promise to
amount of purthen the creditor
that
sure
would receive
he
in
turn
stipulated amount
In
tive
expenses
somewhat
than
might be
of
a
.,
and that
citizen
a
Country X borrows $1,000 from
account
in
Country X is
the x-unit, corresponding to our
dollar.
one
When
x_unit
foreign
ceived
loan
exchange
the
20,000
Under
the
is
$0.05
equals
that
means
the
made,
on
market,
debtor
which
"
of
the
hypo-
by
tures and
power
the
grow
the
loan
is repaid with
jated interest
vant
will
time
price
pur-
into
ma-
accumu-
Assuming the rele-
indices
are
when the loan matures
the
as
same
when it
was
negotiated, the citizen
of
Country X would owe 30,000 xunits, and the American would
receive $1,500, regardless of what
had happened' in the meantime to
the rate of
-
But
now
exchange,
let
us
assume
that-the
at¬
an
60,000 people at this
The
the
on
presently us¬
diodes in their
are
from
from
from
system
Flemish
The
Belgium will listen to the Dutch
broadcasts
Germans
broadcasts
modified
Belgium.
from
Holland
the
and
Flemish broadcasts from Belgium.
The German population of Bel¬
transmitting and studio equipment
and
the
of
should
prices
of transistors.
The
largest radio manufacturer
in Europe is located just outside
television
are
used
rnuld
marip
hp
an
to
and
contracts
American
at
with
Cathode-ray
manufacturers
the
presently
are
is
tube
time.
same
exporting
considerable
Germany at
the
to
talk
it
going
future,
and
likely.
looks
in
very
television
handicapped
by
is
the
somewhat
fact
that
it
differs from the rest of European
television in that it uses an 819line
system.
addition
In
rigs
government
downward, and
to pro¬
government if the
rigs its in¬
dex upward. Without the aggre¬
gate price indices and the ar¬
creditor's government
rangement that will be described,
such
controlled.
If
such
indices
used, a
loan of a given number of mone¬
tary units, weighted by the index
would
number,
were
represent
a
*a*n stiPulated assortment of
cer-
corn-
modjti?.s\,The creditor's government, if it
be
'
suspects rigging, could
—— - v,WT'""rT ™
to receive these
empowered
goods
in
.
.
,
exchange for
,
on any
money
J
it"
^
debt-
an: a
°^'s governrnent^if it suspects rig-
ging, could be empowered to turn
over for money to the creditor's
Continued,
on
page
51
the
Eiffel
Tower,
is a station in Lille, Lyons
Strasbourg. It is expected that
new
equipment will be installed
and
on
the Eiffel Tower station in the
near
cities
eventually
uses
of
all
equipment,
including
Iconoscope
cameras.
The
in
radius.
only two
5
Utrecht,
near
KW, and
covers
of
45
about
They
are
the
on
a
miles
air
three days a week for
or
few hours each day.
a
Italy
i
Television
able
strides
has
consider¬
made
in
this country and
presently operating
Rome, Milan, Turin and Monte
Penice, between Rome and Milan.
stations
The
are
Vatican
in
will
France
have
which
television
will
station
as
casting
began
have
its
own
well.
Regular broad¬
about the first of
the year.
These
stations
have
been
con¬
nected
by microwave lengths and
eventually will be hooked up to
the
European
are
now
and
receiver
Italy,
of
and
a
American
been
network
through
Germany. There
approximately 30 tele¬
Switzerland
vision
future.
Other
studio
transmitter is located
the
to
there
debtor's
tect the debtor's
on
Dor¬
in
France
French
if
index
The
in
outside
borrowed
of
commercial
the
transmitter
the
Amsterdam.
single
a
located
Hilversum,
in
present time
television
protect the creditor's government
its
studio
near
countries in Europe.
There
that
receivers
concluded
They
were
sum
area
of
indiceg
television
primary
easily transportable.
such
development
have
assessed a small
fee to cover ad¬
commoaii
Presently Holland has
rest
pay¬
contractual
commodities
the
the
at
of the aggregate type
only with the wholesale
of
in
world
be
Pn?es ot
of
abreast
operates
price indices. The
writer
believes
these
and deal
I£
well
are
turing
rigging could be profitable,
especially if exchange rates are
has
thetical loan, two units- of
chasing
three
the
x-units.
terms
choice
flmnffpmpnt
_
assume that the plan
of
was
Per-
payment be less
problem in imple¬
the proposal would be
present
fol-
citizen of the United States. The
of
tendance
there
French
France and the French broadcasts
two
no
serious
menting
-
operation
such
each
percentage
the
lows, the more complex situation
fluctuatinff pxrha'
p rat_ will
™
change rates will
.
re¬
the
of Neuremberg in South Germany.
These people are now manufac¬
that
stipulated minimum.
a
A
therefore, in the
,,
were
show.
most
completely un¬
however,
to
assume
We shall
in
requiring
Price Indices
is
„
cost
ministrative costs.
hypothetical example which
e£
would
plan
might be kept down
by
such contractual
eign exchange rates are fixed, it
would be a fairly simple matter
to put the purchasing power
plan
necessary,
are
would have to be maintained concerning all payments made by
debtors to creditors, administra-
flat
Operation
It
priori
a
terms
were
by microwave from Hann¬
day
Belgium will listen to
Dusseldorf
at
programs
others
and
One
over.
some
v
Under conditions in which for¬
effect.
trade
Since official records
something.
ment
.
our
originated
ceived
held
was
which
may assume that in the long run ing germanium
television receivers in screen sizes gium will listen to the German
the Treasury's gains would offset
of 17-inch and 21-inch. In addi-i broadcasts from Germany.
its losses.
are
manufacturing
they
It is certain, however, that ad- tion,
Holland
haps
power.
Hypothetical Exdmple of Plan
is
determine
way
to
whether
no
ministering the
Such
of
mi®ht change' But since there is
of
The
position
from
involved likely to improve or to worsen, we
governments
wouJd
suing
unit
of the debtor.
losses could be large, depend-
or
stable rates, and
of the plan is sim-
essence
rangements.
into
Power Plan
The
tively merely upon bilateral ar" ret;caI1y the government's gams
Bordeaux, Marseille, Nice and
Eventually there will
probably be many other cities in
are
in
number
have
also
other taxes
France which will have television.
manufacturers
substantial
receivers
are
Toulouse.
the
But
planning of stations has
involved
only the previous
for the time
In
able
are
being.
September,
held
was
cities
in
a
Paris
interest
was
and
consider¬
shown.
approximately 15
or
receiver
and three
large Cathode-ray tube
manufacturers
manufacturers. This number
increase considerably in the
future.
are
may
into
the
country.
duties
and
customs
on imported receivers
high, and, as a result of
good many imported re¬
very
this,
a
ceivers
are
vision
show held
attracted
ported
shown
at
was
tele¬
which
all
over
complete
were
of
im¬
permitted
this show,
number
a
Milan
from
no
receivers
siderable
in
people
Although
Italy.
to be
still in Italian Customs.
September there
There
20 French
television
Programs
However,
In
television show
imported
a
con¬
American
near
both live and
chassis
on
were
exhibited
Continued
in
on
Italian
page
52
Volume 179
Number 5304
.
The Commercial and Financial Chronicle
*.
/"
(989)
most
Does Govf. Insurance
Electronics: Matured,
But Growing
Develop
Excessive Mortgage Credit?
Industry
•
up
in
sales
and
Benjamin Abrams, President of
Emerson -Radio and Phonograph
future
Corporation, New York City, in
Chapter of the
Robert Morris
masses
.before
speech
Associates
d i
a
York
New
was
dent
assembled
Club, on Feb.
3,. discussed
"Pocket
various
members the
Emerson
est
of
pects
ics
i t
as¬
the
ment, its
ent
characterized
Industry,
develop¬
s
of
his
Benjamin Abrams
course
.
,
traced the origin
of the radio in¬
address,
commercial sponsoring
extent, at least, upon
some
phil-
It
contributions.
ahthropic
was
radio in¬
dustry began to expand. That year
Mr. Abrams said, the industry was
not
until
that the
1932
introduction
popular
The development brought
revolutionized by the
of small
prices.
radios selling at
of the masses
within reach
radio
created
also
r.nd
small
for
demand
a
Radio,"
as
actually
or
a
nation is the degree of home
enjoy.
as
Mr.
Abrams
is
in engineering and
predicted that, when
new
boom will be
and
does,
a
started in the
industry which may
well last for several years.
the subject of color tele¬
very
the
per
owner¬
cars or
or
household
of which
Marcus
before
ownership.
II, the indus¬
War
World
reached $400,-
try's sales volume
out
pointed
that, from the crystal stage in 1922
to color television in 1954, which
"Introductory
of color, there has been a
the
termed
Year"
with
evolution
continual
many
resulting casualties and successes.
He
declared
that
the industry
the
sale
receivers.
white
is
000,000 annually.
Mr.
Abrams next
he
eliminate
of
black-and-
declared
He
he
that black-and-white
will always sell alongside of color
positive
continue
times
all
Construction
ble
is
quite
housed, the
are
society.
a
which
evident
countries;
liv¬
ing
easier.
Moreover, the quality of housing
the
and
have
a
and
influence
attitude
tion
and
exercise
on
the
History tells
toward
us
soci¬
considerable
a
health
crime
on
owning
on
the
of
definite
individual's
ety
home
bearing
degree
of
na¬
a
conditions.
that in periods of
Annual
Savings
and Mortgage Confer¬
sponsored by the Savings and Mort¬
Division of the American Bankers
Association, New York City, March 3,
ence
gage
1954.
and
the
than
from
rose
end
of
sold
be
to
Mr.
cussed
the
wage income of a significant
proportion of the population is at
sta¬
a
lower level and has increased at
a
lower rate than that indicated in
nation.
a
the
This
measures
of
cost
faster
a
than
commodity
the
real
at
length
some
engi¬
the
This
announcement
being
his
by
done
company
an
offer
to
is under
buy
any
companies
those
that
fact
the
enjoyed leadership in radio
before
television
are
the same
which
leadership in the in¬
dustry today. Many of these com¬
panies, he added, have multiplied
who
enjoy
times dur¬
their net worth several
have
of
sumers
that
commodity,
follows: either the demand for the
governments
provide the people, particularly
those in the lower-income groups,
with
satisfactory
Prominent among
this
in
housing
or
the
government
steps in and through subsidies or
and
otherwise
the measures
encourage
home
Few
loans.
gage
Were
afford to
buy a home outright.
original cost is usually large,
few families are in a position
it
willing to first accumulate the
amount and then ac¬
quire a home.
Moreover, it is
present
doubtful
in
for
in
without
nest
lateral for
a
need,
many
adopt
such
in
the
the
no
that,
emphasized
Abrams
is
said,
the
of
a
business
event of
homes
areas
would
a
policy.
been
This
activity
could
at
which
factors
sales,
increased
he
will lead
said,
Continued
on
circumstances to he construed as an
offer
to
sell
solicitation of
or as a
of these securities. The offering is made only by the Prospectus.
'
.
March 2, 1954
120,427 Shares
PenrnDixie Cement
Corporation
volume of $400,000,000 an¬
before World War II, the
lished
($7 Par. Value)
increased signal strength of
nually
Capital Stock
to
the
are
a
from
stations,
estab¬
growing de¬
the
industry reached $5,000,000,000 in
sales in 1953, dramatically high¬
mand for two or more sets in the
lighting the electronic industry's
stimulated by larger picture sizes
Of
this
the
in
advance
figure,
latter
six
past
he
years.
pointed
out, $2,300,000,000 was accounted
for by television and radio sales
and the balance credited to gov¬
ernment work.
'
Mr.
was
a
Abrams
revealed that
banner year
in the sale of
receivers
television
1953
and
second
only to 1950. The year witnessed
the opening of more than 200 tele¬
vision
stations which accounted
into
penetration
for
These
markets.
many
new
new
stations,
added to those previously in oper¬
ation,
reach
our
ant
brought television within
approximately 75% of
of
population. The most import¬
development of the year, how¬
ever,
was
the
adoption
by
and
and
the green
light to
further
television.
pro¬
marketing .of color receivers.
Another
factor
-
'«•
bearing
*
•
•
upon
He
be¬
Holders of the
The
several
or
was
will
bring
seven
because
Capital Stock
as set
'
•
the
experimented with six
years ago,
of
out,
a
the
but discarded
at-that-time
Merrill
in¬
box approximately 12
square
picture
three
This,
will
which will project
upon
feet
cf
screen,
a
by
four
course,
he
no
feet
in
pointed
longer
be
a
picture
measured
Continued
cn
Blyth & Co., Inc.
Carl M. Loeb,
Lynch, Pierce, Fenner & Beane
The First Boston Corporation
Rhoades & Co.
Smith, Barney & Co.
Kidder, Peabody & Co.
White, Weld & Co.
pos¬
revolutionize home TV
viewing since the size of
will
'
be obtained in any State in which this announce'
ment
is circulated from only such of the undersigned and other
dealers or brokers as may lawfully offer these securities in such State.
The Prospectus may
about
tory illumination via projection.
He explained that projection tele¬
vision
may
eventually take the
inches
agreed, subject to certain conditions, to purchase any
during and following the subscription period, may offer
forth in the Prospectus.
surmountable problem of satisfac¬
shape of
subscribe
Underwriters have
unsubscribed shares and, both
revivial of projection television,
which
Company's outstanding Capital Stock are being offered the right to
$35.5p per share for the above shares at the rate of 1 new share for each 5 shares held of
record February 26, 1954. Subscription Warrants will expire at 3:30 P.M., Eastern Standard
Time, on March 15, 1954.
at
also predicted that
television
color
a
the
development
future
industry
Mr.
1954,
size.
with
the
on
electronics
Abrams pointed
out that the greatest single poten¬
tial for sales and profits is color
yond
sibly
industry
of
performance
commenting
the
sion of color standards
ceed
replacement market
improved
In
.
of
a
model receivers.
new
Federal Communications Commis¬
giving the
and
home
pay?
in
22
Central
Republic Company
Hornblower & Weeks
W. E. Hutton & Co.
i
(Incorporated)
Laurence M. Marks & Co.
not
the
on
will
ac¬
even
Without such gov¬
maintained
Moreover,
circuits for
markets, previously
unexplored for the sale of tele¬
vision receivers, he pointed out.
be
aid,
anticipated
stations.
TV
would
have
level
individuals dislike to
many
open
or
position to
opening of approximately 300 ad¬
ditional
direct
not
only
would
housing conditions in the United
States today be less
favorable, but
egg
loan
for
been in
serious.
ernment
available for
use in an emergency.
While it is
possible to utilize a home as col¬
a
urban
more
family to put all its savings
home and thereby be left
a
a
of
quire them, and the slum problem
advisable
is
not
owners
not have
necessary
it
to
This is
case
housing, FHA insurance, and VA
guaranty
of
mortgages, many
or
whether
possible
indirect assistance by the govern¬
ment furnished through low-cost
indeed
people
it
housing.
insurance of mort¬
guaranty and
makes
buy the given commodity.
clearly illustrated in the
improve
country to
owning has been the government
and
as
encouraged,
taken
The
be
commodity decreases ma¬
terially and its production is not
Home Financing
can
bound to
are
given
condi¬
housing
tions.
tential factor in television sets in
he
the
consequences
to
government and development
projects. A substantial sales po¬
1954,
a
con¬
been taken by many
both
Other
ing these few short years.
Mr.
transistors and printed
of
significant proportion of the
'
1947 with the
introduction of television.
This
is best exemplified, he said, by
reached maturity in
rises
income
at
neering research and development
end
from
1953
prices than color receivers.
Abrams in his talk, dis¬
lower
the
housing plays the figures here presented. Where
that
life of
social
to
have
(average weekly earnings,
manufacturing industries) to
$71.78 or 74.2%. It is obvious that
important role in the economic
an
1945
costs
more
-
therefore
more
is
It
somewhat
69.6
by only
or
all
of
system
from
rose
$41.21
general rule
a
the
prices
black-and-white will at
that
and
people
tend
make
to
Nadler
great
political
disturbance
and
On
The result¬
ing increase in listening audience vision, the Emerson Radio execu¬ revolution, it is usually the slum
dweller
and
the
penniless who
liiade possible better quality pro¬
tive voiced his firm belief that,
follow the
agitator and run to
the sale of
color re¬
grams, which, in turn, further although
the barricades.
It is a known fact
stimulated the sales of radio to
ceivers will rise sharply during
the point where, for some time
1955,
it will never completely
*An address by Dr. Nadler before the
multiple
particularly his
and
as
of
equipment, all
produc¬
price which will give them
universal
acceptance. This may
not be expected to materialize un¬
til
some
time
during
1955, he
added,
more
important
be
to bring color receivers down
is
fender
the
123.0 at the end of
increase of 77.2%. During
period, the index of
an
increased
of
rose
at
same
58.2%.
owns
(U. S.
Commerce)
(1947-49=100) to 110.1
has been recognized by most free
than
that
to
yet
home
who
individual
of
(1947-49= 100)
wholesale
and
ship of
a
it
capita
telephones
emphasized
work
1953,
the-
tion and
as
tion to develop techniques neces¬
to
the level of
capita
considerable
69.4
end of 1945 to
food consump¬
Color TV Sets
sary
important
per
Working for Reduced Cost of
done
This is
as
pack of king-size ciga¬
a
Department
from
a de¬
private
The more widespread
ownership and the type of hous¬ enterprise.
ing the people home ownership is, the better the
of
construction
home
index of construction costs
develop excessive
guaranteeing of mort¬
important property
of the standard of living
measures
' con¬
considerably; in fact, it has risen
than commodity prices in
general.
Thus, for example, the
not
the
form of
a
which
faster
pace
of the mortgage.
guaranty
does
that
most
rettes.
of pro¬
would depend
tion of broadcasting
to
the
that
that continua¬
that time
at
"Pocket
It was the
envisioned.
grams was
view
of
is about one-sixth the size of the
in
broadcasting,
out
and pointed
pioneer days of
dustry
no
One
forthcoming
a
the
Introduction
t
Emerson radio whose cubic content
and development
the
/
important;
an
of
model
oratory
Abrams,
the
and
list-
and
insurance
of
cost
wages,
*
stimulus to the multiple ownership
of radios. He also displayed a lab¬
future
in
though
even
$40,
at
the fastest seller
as
field,
priced
pres¬
prospects.
Mr.
the
in
status, and
its
Radio," the world's small¬
personal portable (measure¬
ments are only 6" wide,
high
and
114" deep).
This radio he
Electron¬
The
has contributed materially to the high level of business
activity and greater home ownership.
gages
in radio and displayed to the
ness
insurance
government
mortgage credit, and holds government
spoke of the con¬
tinuation of the trend to compact¬
at
Harvard
the
on
as
saving
owner.
increased
Contends
($100 to $150).
Abrams
Mr.
at
n n e r
the
the
a
industry
a
stantly increases the equity of the
mortgage supply, Dr. Nadler expresses
opinion it is unsound to make mortgage loans without a down
payment, but holds that extending mortgages for terms over
25 years, as proposed by the
President, is primarily depen¬
velopment during 1953 of High
Fidelity instruments for the first
time at prices within reach of the
electronics
the
buying
amortized mortgage
in the United States has increased
Pointing out supply of funds for investment has kept
with
of the
the de¬
profits
contractual
Professor of Finance, New York University
of 300 additional TV stations will be a potential factor
expansion of the industry. Holds perfection of color televi¬
sion will bring larger sales and more profits to producers. -
an
it, consider this
on
By MARCUS NADLER*
Benjamin Abrams tells Robert Morris Associates the opening
-
in
Americans,
home with
13
.
Paine, Webber, Jackson 8C Curtis
page
56
14
(990)
The Commercial and Financial Chronicle
can
Business and Health
feeling ill, and
for their services.
f
Says thousands of business
concerns
suffering losses because of inefficient work of half-sick
utives and
Reveals
employees.
country.
it
are
■
Some
umn
*
the
I wrote
relation
Health.
of
I
col-
a
column, however, is not
tisement
Business
wish
now
write
to
o
am
n
Health.
Of
course,
people
must
ancj
have
also
be
to
If, however, I
to
get
moted.
so
of
jn
do
judgment
How's
pro¬
1 f-evi-
s e
but I want to write
now
ands
it
I
I have not been
feeling well for
Although I was not
worry,
which
I
I began to
do
never
I, therefore,
in Florida for
a
when
This
of
and
year
Accidents
Foun¬
during the
22,000,000 families
this
But
expense
thrown
away
nearly
good
a
—for
there
deaths,
were
largely
addition, millions of others were below its
injured by accidents, such as traf¬
not
to
fic
on
such
foremen,
and
men
or
:
1952
In
1,350,000; drown-'
home
falls—20,000;
accidents—15,000; burns
—6,400; firearms—2,500; etc., etc.
column
women
will
be
included
in
a
to
buy,
any
or an
offer to buy,
or a
perts
solicitation of an offer
legal
of such Shares. The offering is made only by the Prospectus.
can
the
that all should have
300,000 Shares
The California
*
At the
Oregon Power Company
in
one
But
coming
money
from
weakness
with
rallies
the
only
that
issue
char¬
all
gave way to some
The
after
still
lars for
turn
it
last
mild
about
disclosed
was
optimistic
enough
(Par Value $20 Per Share)
the
But
is
that
the
somehow
(through more taxes "or higher
prices), these millions of young
ply
the
above.
This
makes
the
cost
sickness, youth, and old
more
important than the
Electric
of
the
cently
sounded
caution
for
Some
that
the
note
kept things
re¬
of
re¬
strained elsewhere.
far
cost
did
electrical
markers.
of
age
to
motors
well as Motor Products
as
The latter must also sup¬
$10
billion
mentioned
of
❖
writers
may
be obtained from
any
only in states in which such underwriters
dealers in securities and in which the
Prospectus
of the several under¬
are
may
qualified to
act as
Everett
Smith,
agent of
the Federal Home Loan
Banks, on
1,
announced
that
the
Banks' outstanding
$98,500,000 of
consolidated
notes, 2%%
series
Blyth & Co., Inc.
Dean Witter & Co.
The First Boston Corporation
Eastman, Dillon & Co.
Merrill Lynch, Pierce, Fenner & Beane
First California
Company
Walston & Co.
H. M. Byllesby and
Republic Company
F. S. Moseley & Co.
(Incorporated)
March 15, 1954 will
redeemed at maturity without
resources
Company
(Incorporated!
that
on
bonds
Pacific Northwest Company
$111,000,000 of notes due
date.
Elworthv & Co.
Lester, Ryons & Co.
the
refi¬
Irving Lundborg & Co.
year
as
a
Wulff, Hansen & Co.
J. Barth & Co.
Brush, Slocumb & Co. Inc.
Bateinan, Eichler & Co.
Crowell, Weedon & Co.
Wm. P. Harper & Son & Company
Mitchum, Tully & Co.
Reynolds & Co.
Francis I. duPont & Co.
^
Company
March 2, 1954.
on
turing notes will be paid
Foster & Marshall
Hill Richards & Co.
Stephenson, Leydecker & Co.
Mason Brothers
repayment of
increase in deposits.
Principal and interest
Federal
•
Wesley Hall & Co.
.result of
an
Upon
Reserve Bank
redemption
or
of
the
reduced
to
$204,000,000.
Incorporated
than
last
was
Jay Kaufmann Admits
Jay
W. Kaufmann & Co., Ill
Broadway, New York City, mem¬
of
change,
the
on
American
Stock
Ex¬
March 1 admitted John
R. Atwell to
partnership.
i
10
their initial
strength early in
the oils have been
the year,
anything but distinguished
after
one
issue
the
standard
the
tried
ones
tilely to get a sustained
going.
as
of
other
fu-
move¬
ment
if
if
Chemicals
*
also
have
been
the
below-average cate¬
gory,
despite some momen¬
tary strength in Monsanto
following ]rather protracted
Chemical
Allied
weakness.
modestly heavy for the
was
most
while
have
been
Dow
seemed
released, at
to
least
temporarily, from the persist¬
DuPont,
too, was far from outstanding
ent heaviness of late.
change for it after
strength and histor¬
ically high tag.
equip¬
the
was
a
'
'i'
V
soon-
Raido
Corp. in Spotlight
An individual issue that did
well
two
was
in
reported
steady
news,
vestors
i-
❖
of
catalyst
week,
1
by
a
give
a
where it
chalk
up
a
new
Plan
of
it
in¬
Month¬
helped
the following to the
as
somewhat
was
much
favorable gain per session.
to
that
choice
using the
point
helped
stream
this
No.
Investment
build up
continued
account
the
was
ago
1930.
Aircrafts,
the
be¬
issues—West-
split 4-for-l less
years
❖
good
difference
one
while the
split in Qeneral Electric ly
\
,
bers
the
inghouse
issue
outstanding consolidated note ob¬
ligations of the Banks will have
been
is
tween
at any
McAndrew & Co.
Wilson, Johnsoii & Iliggins
There
ma¬
branch.
the
somewhat meagre
a
which to subsist. After
This far more than a general tele¬
issue, too, reached its highest vision popularity, was highly
posting in two dozen years. individualistic. The fact, as
beginning of the
William R. Staats & Co.
on
panion paused for rest.
a
substantial inflow of cash into the
Banks since the
Schwabacher & Co.
loans and
Paine-Rice &
of
to
recourse
nancing, Mr. Smith said, reflects
Davis, Skaggs & Co.
!>utro & Co.
Retirement
without
fast
despite the seesawing of
general market was Radio
famous year of 1929.' West- Corp. It forged ;ahead wellinghouse alternated with GE when the general trend was
in
keeping this group tilted up but gave ground grudg¬
upward and was on the spot ingly when it was the other
to take over
any time its com¬ way around. It's performance,
refunding. On Feb. 15 the Banks
similarly redeemed from current
Smith, Barney & Co.
Incorporated
Central
be
oil
level it has reached since the- the
C-1954, due
Kidder, Peabody & Co.
Stars
to-be-split General Electric
with daily
gains of as much
as four
points to the highest
,
even
heartening to the
followers who, generally,
was
V
ments, the star
fiscal
March
Electric
As for the electrical
FHLS Retires Notes
consider¬
before it again
all-time high.
new
a
high
new
a
its recent
General
legally be distributed.
official
an
1952- with
which is
if
coffee!
Copies of the Prospectus
couple of
finally
attempts,
have had
cen¬
lows in Nash and Studebaker
old
must
be
supported by
those between 22 and 60-65
years
of age.
bulk
equipment
and
Price $26.50 Per Share
a
Chrysler wasn't able
General
as
truth
fruitless
in
spark the rest of the
pensions?
The
maximum of
a
tury.
young people 22 years fori educa¬
tion and play, and the old
people
Common Stock
a
Up Oils
a
But the fact that it could
was
the
give
to
is
this
to
if
Amerada, after
posts
wore something of
look, in that the per¬
a
where
but
back
if
able gap to go
same
nine.
if.
posted
that Prudential Insurance Co.
number of people over 65
years is
one
in 12; in 25 years it will be
worked
Amerada Perks
since
*
college edu¬ over
the laggard of the
Big
time, industry
is' retiring more people between Three auto makers to
pledge
60 and 65 years of
age. Today the it a quarter of a billion dol¬
cation.
time, since,
it
do this
came
the
at which .young people
to work.
Now they say
the
Chrysler
strength.
ex¬
of
week
The acquisition
red ink item most
a
new
year
raising
share.
a
been
well
is
even
February high.
occasional
age
go
but
*
acterized
constantly
are
levels
sistent
figures!
was
a
reach¬
Chrysler's New Look
1.
These figures are supplied by the
National Safety Council.
I won¬
der
how
many
readers of this
others,
from
—
industrial
the decisions made by
"half-sick"
accidents
accidents.
-
ings—6,800;
are n°t weU- As the piosperity of every business depends
executives,
automobile
Far
ing anything approaching a
historic level, the rail
average
not only is below its 1953 and
of
absolutely
was
100,000
part
if
iQ be home in bed
They do thig
partly not to lose their pay; or—
—
It
than
of comfort for the strong break-even level.
from
executives
$8.
%
showed
moments
and
surged $24
strength. And there is the has
on
selves to work when they 0USht
are
#
list
weak
Let Us Look to the Future
offering of these Shares for sale>
The
way
The politicians and welfare
not an
❖
that
of
money.
1954
This is
highest stand¬ thing of a black sheep. It
since the dropped from the 1946 high
fabulous days of 1929.
of better than $33 to below
average
the people treated got
industrials.
well, although they lost both time
workmen, salesmen, and
are
dragging them-
they
a
the records the
ing for the
Information
reports
Most
who
largely
am now
few weeks.
Your
re the word get around that
I just could not do any
and
of
and
stretched to
pitals, nearly $5J/2 billion to doc¬
tors and dentists, $lx/2 billion for months-old fact that the rails
medicines, and over $1 billion for have furnished little in the
other
practitioners, nurses, etc.
0f foremen and tens of thous-
clerks
Personal illnesses
personal Illnesses
of
cost
by Consolidated Vultee being
the proposed
merger with
valid pene¬ General
Dynamics. Convair,
that put in for several
years, was some¬
industrial stocks
tration this week
$10 billion, $2 billion went to hos¬
financial loss.
Health
cash
least the
was
the States expended. Of the above
have
Yet, there must be hundreds of
important executives and thous-
an(js
feeling well.
would
Associates?
dis-
constructive work
which
the
This is
no
legs.
not have given
"value received" for
caused the company
something much deeper.
and
each
salary. Worse than that, I probwould have made mistakes
that
three weeks.
and
were,
office
an
my
dent
Mv
My
to
The month-old breakout
at
considerably less
blue chip when Gen¬
signs of
of these United States as individ¬
eral Dynamics acquired 400,weariness at times
subsequent¬
uals paid out over
$10,000,000,000
ly, which was highly logical 000 shares (out of 2,379,298
for medical and dental costs. Fur¬
and in the classic tradition in outstanding) from Atlas Corp.
thermore, this was in addition to
almost a year ago at about
what the Federal Government and that
offerings dried up on
or
my
needs
cussion;
go
job
dation
work
and
Roger W. Babson
any
direct
Health
STREETE
or
other
"up to snuff,"
might
not
have
the
on
past full
abiy
in
order
upon
^ay, I would
free
good
dependent
In
illness and accidents.
The
financially
go, I am
and
come
health
your
were
Illnesses
company
to buy,
they must
lrom worry
I
rather is to say that
independent
obliged
order
but
tistics
adver-
an
although
salary.
in
wages
purpose
free
not
employment
and
Florida,
By WALLACE
company
needed to lay you and others off.
So much for that. Now some sta¬
fond of its climate!
very
My
being
Physical
for
THE MARKET... AND YOU
unemployed,
are
health.
the
'
weeks ago
on
Mental
to
'
'
■
boss's
your
Words, if he
exec¬
of illness and accidents.
■
.
If you
be due to
may
to
statistics of cash losses
some
much
losses for this reason, it shows
how poor health and
worry must
affect the entire business of the
thus not giving full value received
are
Thursday, March 4, 1954
.
\
When you consider that thous¬
ands of companies are
suffering
Mr. Babson discusses health in connection with individual's
earnings, and points out employees are often forced to work
when
companies
^
By ROGER W. BABSON
[
their
cause
loss.
.
.
as
able
a
to
point
Zenith was
erratic
member
of themselves^ of the video group generally
in
the
case
of
but
it
managed to
carve
out
Volume 179
Number 5304
...
The Commercial and Financial Chronicle
(991)
4 i
fair
gains without slipping toomuch subsequently.
"*
'
S-fi
%
%
present
Where Is the Helicopter
Heading?
highly individualist
were
the performances of
strength put on occasionally
by Northern Pacific and New
Haven in the depressed rail
section.
Northern Pacific, as
usual, derived its following
extension
intangibles of its oil
lands, making it a trader's
item that can be guaranteed
to go through fillips occasion¬
ally. New Haven's perform¬
based
was
the
on
,
tangible probability of
proxy fight for control of
the road, a battle almost posi¬
more
named.
rival slate
a
,
..
.r,
already
....
;/ The more bitter battle over
New
York
little
influence
Central
offered
marketwise.
The initial
hop in the issue as
fight started seemed to
the
have
run
its
and, de¬
course
spite the normal fluctuations
in
tune with
action,
the
surely
time
There
general market
was
stock
of
had
lei¬
a
pricewise.
it
enough interest,
however, to keep it in the
activity column after two
consecutive weeks in which it
led all the others in turnover.
❖
'fi
RKO
Also
V
Simmers
quieted
large metropolitan
down
was
Hughes, that he buy
RKO, like Central,
continued to feature in activ¬
ity including blocks between
5,000 and 10,000 shares at a
clip. And it fought gamely to
hold on to its No. 1 position
heaviest
the
as
traded
issue
of the year to date.
Its ability
to hold
over
a
lead
even
Cen¬
largely due to one
gigantic week's turnover of
was
than
more
770,000 shares
which, at the time,
was more
trading in five sessions than
other issue had managed
any
in
the
six
entire
trading of the
of
weeks
year.
The technical
action, whde
encouraging, still left plenty
of doubters around.
ful of blue
A hand¬
chips carried the
favorable dividends and
earn¬
ings, merger rumors
splits, did little for the
ket
generally and
sortment
of
mar¬
large
a
issues
and
did
as¬
little
the statistical
strength. Inability of the rails
to get moving continued
as
despite
the
king-sized
damper
that
nourished the bears and
kept
what
like
a
time
views
do
not
coincide
expressed
with
those
Chronicle.
those
in
necessarily at
act;
y b o d y
enjoyed
watching
it, but few
people
cared
eve
of
They are presented
of the author only.]
than
in
productivity.
(B) Civilian: The helicopter al¬
ready is receiving considerable
attention and application to civil¬
ian
commercial
work.
Regularly
scheduled mail services have been
operating
com¬
New York since 1952. In Los An¬
has
geles, for example, the helicopters
of Los Angeles Airways make 1ft
flights daily between the airport
medical
value,
and
proved to be
factor.
automobile inter-
a
Every
speedy,
evacuation
sure
tremendous morale
fighting
and
man
every downed airman knows he
won't be left wounded in the field
r
confirmed
large number of those were ex¬
perimental craft which never saw
flying
included
vertical ascent
and descent, just as the birds and
the helicopter fly. In fact, some
of the earliest recordings of man's
flight. Only four years after the
Wright
Brothers'
first
flight,
Louis
Breguet, the famous and
still
active
French aeronautical
lifted
engineer,
a
man
off
the
ground for the first time with a
helicopter. However, the simpler
mechanical
problems
and
the
need
for
relatively less power
ceeded that of
that his chances for survival
previous
any
some
far
as
on
a
and the roof of the main Los
An-,
g^les post office downtown. They
afso make six circuits of suburban
routes, serving over 40 communi¬
niques gained from the develop¬
ment of the airplane and the autogiro.
;:
this
At
I would
point,
like
to
between
the
heli¬
copter and the autogiro, and de¬
fine the helicopter.
distinguish
other field
given a
new mobility for observation and
liaison. For the first time, they
have
first
their
units
immediate
and
have
hand
and
been
contact
the
access
with
all
capability of
to trouble spots.
This, however, has brought com¬
plaints from GI's who say that
even
a
foxhole no longer offers
them
any
privacy.
routine
that
Tnis
lines.
the
became
in Korea posted
sign
which
said:
"You
We Dash; You Call, We
big
Crash,
Haul."
In another
the
Regular
tween
type of work,
is
France,
service.
provided
be¬
in
Belgium,
and
Western.
Similarly,
British
Eu¬
Airways has operated heli¬
copter mail and passenger service
and has
convert
publicly stated that it will
many
of
its
Continued
routes
on
page
to
49
t
called
This advertisement is neither
offer to sell
an
The
nor a
solicitation of offers to buy any of these securities.
offering is made only by the Prospectus.
March 2, 1954
NEW ISSUE
000,Shares
0061
1
usefulness of
The demonstrated
helicopter in Korea can best
be summarized by quoting Gen¬
of
international
cities
major
Germany.
ropean
first
passenger
service
Holland,
"Operation Haylift," 16 Marine
Corps helicopters kept two regi¬
ments
of Marines supplied for
five days without any other form
of transport. In those five days,
1,700,000
lbs.
of
cargo
were
brought to those two Marine regi¬
ments.
world's
helicopter
5th
Rescue Squadron
a
European neighbors have
equally alert to the heli¬
copter as a transport vehicle. Last
summer, I had the privilege of
being a passenger when Sabena,
the Belgian airline,- inaugurated
so
Force's
Air
Our
been
behind
miles
1,25
as
enemy
eral
result of the knowledge and tech¬
Generals
(6) Important mapping and sur¬
1,000 pick-ups of crashed
veying work is being done by
pilots and other U. N. personnel
were
made behind enemy lines, helicopter, particularly in Alaska.
development. Only in 1937 was
the
first
truly successful heli¬
This was. a
(5)
commanders
war.
the
flight made.
Mines
are
sighted
and
by riflemen in heli¬
copters, without the dangers to
which
a
minesweeping boat is
subjected.
(4)
detonated
Over
permitted the fixed wing airplane
advance more rapidly in its
to
Shepherd,
U.
the
Corps
Commander
Marine forces
in
Southern California Edison
Commandant
now
Marine
S.
previously
Korea.
Company
and
of
all
General
Shepherd said: "With more heli¬
copters
available,
the
military
this
of
uses
unusual
vehicle
Common Stock
are
almpst unlimited. Although Korea
actual
in
($25
the first time they had
was
value
(1) The helicopter has rotating
wings, as distinguished from the
fixed wings of an airplane.
over,
has unique
as
a
been
combat, their extreme
military weapon is es¬
par
value)
fined
helicopter
The
(2)
flight characteristics in that:
It can hover and fly slowly.
It
can
rise and descend
vertically.
(a)
(b)
can
fly backward and
sideways as well as forward.
(d) It can land and take off
It
(c)
within
dimensions.
own
The helicopter differs from
(3)
the
its
that all of the
basic
factors
of flight
emanate
from its rotors. That is, lift, pro¬
pulsion, and control all are de¬
autogiro
in
frorri the
rived
rotors.
The
auto¬
giro, on the other hand, had a
free-wheeling rotor which was not
powered; its propulsion was pro¬
vided by a propeller, and the craft
had
to
be
its rotor
in motion in order for
to
be
turned
than the airplane,
not
capable
flight
as
of
beyond dispute. More¬
the usefulness of the heli¬
copter is not by any means con¬
to a situation such as en¬
but
hovering
it
in
Korea
in
dramatic.
rescue
*An
the
address
Association
York"
by
of
particularly were so dramatic that
they tend to divert our perspec¬
tive
from
some
of
the
other
im¬
applications of the heli¬
portant
copter. Now that Korean hostili¬
ties have ceased, it is timely to
evaluate the helicopter's present
and future roles and to determine
such underwriters
whether
current
and
thusiasm
is
_
helicopter
en¬
Mr.
Piasecki before
Brokers,
1953.
Copies of the Prospectus
may
be obtained from the several
underwriters, including the undersigned, only in States in which
in
which
are
the
qualified to act
Prospectus
may
as
dealers in securities
legally
be
distributed.
only a result of at¬
tracting public fancy, or whether
the helicopter's true value is pro¬
portionate to the publicity it has
appraisal, I shall
received. In this
discuss:
(1)
The First Boston
Present applications.
(2)
Future
potential,
Corporation
Dean Witter & Co,
through
extension of present uses, the de¬
velopment of new uses, and in¬
creased
capabilities of the ma¬
BIyth & Co., Inc.
Merrill Lynch, Pierce, Fenner & Beane
chine.
(3) The impact of the helicopter
on
our
social
and
economic
sys¬
Present Application
Customers'
City, Feb. 23,
share
work
tem.
New
Price $40.25 per
heli¬
the
of
were
achievements
Its
or
is the helicopter.
achievements
The
copter
by the air
flowing through it. In short, the
autogiro was half airplane and
half helicopter. It could fly more
vertical
tablished
countered in Korea."
the
as
spent in
its
Experience in Korea proved and
the helicopter's great
utility and versatility and gave
tremendous impetus to develop¬
ment and production of the ma¬
to buy one
chine. Everybody from the gen¬
and take it
erals to the GI's was equally im¬
home.
Its
pressed even though the number
fundamental
of helicopters available was but a
Frank N. Piasecki
applications
handful.
Some
20,000 casualties
were not clearly understood.
were
evacuated by helicopter in
In fact,
prior to Korea, only Korea, with the result that 97V2%
about 1,000 helicopters had been of all wounded personnel
sur¬
built in the entire world, and a vived. This survival rate far ex¬
this
any
was
rather
daily basis in
metropolitan Los Angeles since
1947, in Chicago since 1949, and in
fortable
using the limited number of heli¬
copters available.
circus
was
[The
article
movement
.
slowly
the bulls wary.
slow
—
for years,
has been considered
"fantastic." Special situations
moving ahead smartly due to
time
Dynamic changes have occurred
The first military helicopter was
are
greater than ever before in
the
emphasis
placed
upon delivered only in 1943. Until the
ties within a 50-mile radius of
helicopters since the outbreak Of outbreak of war in Korea, the history.
hostilities
in
Korea.
Prior
to helicopter's principal use — and
(3) Ship-to-ship and ship-to- Los Angeles. The New York heli¬
shore transfer of personnel, mail, copter service has been extended
Korea, the
this on: a limited basis
was
to include passengers as well
helicopter was
rescue.
Other
as;
applications
and battle plans, doctors, and medical
mail. You and I can buy tickets
more
of a
techniques were being developed supplies is commonplace in our
novelty than a
A helicopter is standard in a routine manner for helicopter
and
demonstarted in maneuvers Navy.
transit
between
basic
vehicle.
Idlewold,
Labut only
by a relatively small equipment on every battleship and
It w a s some¬
Gruardia, and Newark Airports.
nucleus Of helicopter enthusiasts cruiser when it goes to sea.
industrial average to
its lofty
position, less than 90 points
under the 1929 best which,
actual
in
copter
tral
much
saves
fatigue in rough terrain in per¬
forming surveys where most of
the time heretofore
and
fact that man's earliest concept of
Down
helicopter
and
the dangers of rough surface rides
and without transfer. Aside from
plant transportation facilities.
pending settle¬
ment of several legal actions
designs for flying machines—in¬
and the meeting of stockhold¬
cluding designs of the ancient
ers to act on the
proposal of Chinese and Leonardo DaVinci—
were
directed
toward
verticle
the
dominant
stockholder,
them out.
or
are:
injured, taking them speedily and
directly to field hospitals without
areas.
capital investment than short-line railroad
practical service. This despite the
RKO Pictures
Howard
and
far
a
tive with
of
decentralization
with
today among these
exposure to the elements is ex¬
tremely critical.
(2) Evacuation of wounded and
Says helicopter will
extend this radius many miles, while it will be an aid toward
the decentralization of industry since
helicopter service pro¬
vides a ready means of tying together individual
plants of one
concern.
Points out helicopter transportation requires smaller
from the
ance
Corporation, Morton, Pa.
synchronized
transportation,
varied.
and
tremendously important in Artie
and jungle climes, where time of
,
Mr. Piasecki discusses all phases of the development and use
cf the helicop'er. Points but its unique timeliness for commer¬
cial
u
■
(1)
Chairman of the Board,
Piasecki Helicopter
several
are
Foremost
i
.1
.
applications* aL The
Rescue, not only in Korea
but throughout the world. This is
By FRANK N. PIASECKI*
Also
ready
1
military
15
(A)
Military:
The
helicopter's
William R. Staats & Co.
16
(992)
The Commercial and Financial Chronicle
.
.
Thursday, March 4, 1954
.
I
ly be simpler.
Channels oi Investment in TV
By
IRA V. COBLEIG1I
Author of
A brisk tune-in
forth
the TV production program
on
for 1954, setting
and broadcasts.
tions
electronics
more
in
colorful
1954 that
before.
really quite a
gal and her
antennae
ceive
re¬
billions
more
waves
than
even
Toni
could
supply. Today
27
mil¬
TV
sets
some
lion
bring comedy,
culture, Cole
Porter
Ira
U.
and
commercials
Cobleifh
into the Amer¬
ican
home;
the
Chicago, for
time
in
history, they
TV sets than telephones
first
have
more
bath
or
in
and
tubs.
This
sarily intended
as
is
not
neces¬
sales lead to
a
either Illinois Bell Telephone Co.,
or Crane Co.;
it just proves that
out in the Windy City
they prefer
tubes
to
rings!
Having
emulation
to
warm
the
"
done
of
Video
TV
this
Last
somewhat
a
minor
comedy,
industry.
presented
let's
about
year
it
contradic¬
tory picture. While many of the
statistics were favorable, the mar¬
ket action of
leading equities here
distinctly disappointing. Total
was
production
the
near:
; was
seven
million
level
(exceeded only by
1950), net earnings for most com¬
panies showed a good gain over
1952, and the market was broad¬
ened
by
dozen
the
entry
stations
new
of
several
bringing the
total at the year-end to about 360.
These
stations
new
counted
sales of
for
addition
in
1953
ac¬
roughly 25% of the
sets, and the projected
new
of
as
many
200
as
more
broadcasting stations for 1954 is
the
production and sales, the
price average of leading TV shares
off almost 20%
was
in 1953
(from
How did this happen? <
1952).
Well; first there
able
was consider¬
of
inventory,
indigestion
that is.
money
George Spelvin has
now
no
Raytheon
is
ders
(around
log)
boy for
these
doubts
have
solved, he finds sets
$25
age
cheaper
been
the
on
than
re¬
aver¬
last
No¬
vember.
Twenty-one inch sets of
quality are available quite
generally at or around $200. That's
attractive
price-wise,
and
it's
moving the items out.
good
From
be
the
above, it should
that
presumed
brushed
That
aside
would
not
be
can
little
of
as
be
color
import.
incorrect.
it
But
is sound to assume that at around
$1,000, color sets will limit their
appeal
the
to
There
Cadillac
about
were
crowd.
110,000
Cadil¬
lacs
sold
bad
prediction for color set sales
in
in
1954.
1953
Moreover,
calities
for
color
completely
that's not
tube
have
resolved.
and
mount
and
green,
each
in
blue
and
different
a
the prices
way.
the
of
tubes (of
by as much
For broadcasting studios,
size)
same
$50.
as
been
not
RCA,
Co¬
(Para¬
have color
Pictures) all
blending
red,
And,
techni¬
Chromatic
tubes
the
a
vary
too, the color costs will be higher:
and
equinment
new
much
costing
$150,000 per station seems
requisite. So a lot more progress
and
cost
denced
reduction
be
here, before color
regarded
threat
either
as
black
to
substantial
With
evi¬
can
be
dangerous
white, or a
a'
and
contributor
earning
pany
must
to
power.
general background
mind, let's take a look at a few
companies whose shares may have
some
current
appeal.
You'd
to
start
research
has
years
divi¬
or
off
with
through
given
it
the
consistent
leadership in the industry, and its
1953 contributions of
color tube,
a
atomic
an
heavily
special
toward
control
battery radio and tele¬
vision tape recording open up new
vistas of earning power. The
com¬
Montgomery
Ward
Auto Supply Co.
has
been
has made
sales
in
panding
million
a
and there's
in
this
a
$2.40
1953.
Net
preceding
quite
year;
bit of leverage
a
the
For
common.
conservative
2.7
1949 to
(year ended
100% improve¬
the
investor,
more
there's
a
preferred convertible into
shares/ This prefer¬
common
large defense business—in
a
fire
radar,
counted for in several ways. First
there was some slippage in pur¬
'ow
chasing
market
price
of
25%
year.
power due to increasing
unemployment.
More important¬
ly, there was a barrage of com¬
ment and prediction about color
television which caused
national
a
*ust
about
price
bisects
the
the
of
range
high
and
stock
last
1950
have
been
quite good,
covering the current $1.50 in each
good margin. Per share
for the fiscal year (ended 6/30/53)
by
year
a
$2.93.
At
present quotation
17%, Magnavox shows one of
was
of
the best yields in the group, 8.6%
on»the current dividend.
Of
this
course,
short to
too
is
space
all the TV. General
cover
Electric and Westinghouse are,
of
powerful factors here, but
TV
only
is
their
total
excellent
small
a
sales.
portion
Motorola
outfit.
DuMont
is
is
of
has
electronic
time
impressive
an
company
for a long
a
continuous dividend
with
record
been
research.
covered
at
an
It and
Zenith
the
on
common
running
length in earlier
some
Related
Sprague
the
to
trade
Electric
also
is
The
air
sorts
a
few
months longer until the color
jobs
Then, toward
the market.
were en
the
year-end there was a bit of
price cutting; and "some, at this
stage, deferred purchase hoping
for still lower tags.
All this caused
those
security analysts who have
always viewed the TV trade as
1
ighly
cyclical,
section
of
withhold
the
to
lay
off
this
market
list, and to
ratings in this
"buy"
group.
the
sixth
turn
of
of
the year,
and
already
ac¬
1954
counted lor, it would
little
more
attitude
might
inventory
at
and
has
set
•
seem
constructive
well
toward TValues.
sharo
appliance
a
be
assumed
First, the heavy
been
sales
p'ekup
that
market
well
have
almost
nibbled
shown
a
coast-to-
By
with
65
of
ironers
and
share
for
yields
and
about
has
common
PHL
sold
at
total
value of
peak levels in 1953 has often been
have
products made
&
Phonograph
progressive producer
in a highly competitive field.
It
pioneered in portable radios, clock
radios,
a
and
is
up
front
1954
color
tag.
with
(It just announced
for
with
this
the
burner
in
set
set.)
air
field
1953
of
also
government
a
$700
a
It
its
price
and
present
$1.60. This is
in
a
of
TV
which
also
are
There
split
dividend
can
most interesting
was
stock
in
rate
specialized
12%
for
1
a
1945,
in
and
1952.
50%
a
History
mulation
it
billion,
as
The
sented
foregoing
as
a
has
been
pre¬
somewhat hurried ap¬
praisal of video and its vistas.
viewing
of
the
A
industry
does not appear
particularly war¬
ranted at this time; in fact, there
may,
today, be some rewarding
channels
maybe
for
investment in TV—
among" the
d
p a r e
with
Fall
is
issues
we're
mentioned.
and
a
of
$4.6 billion
in
1944.
tail
The
over
was
a
1952
contracts
number
Weekly Firm Changes
The New York Stock Exchange
has announced the following firm
changes:
Transfer of the Exchange mem¬
a
by
the
Exchange
on
March 11.
of
with
Bywater & Leary
Feb.
was
dissolved
Robert
C.
Sprague
increase in military
25%
tronic
but
equipment.
growing
&
Co., Feb. 28.
year were some¬
The
indus¬
for
markets
take
a
look at the pros¬
over-production
helpful to review
be
back
cut
bring
total
a
the
industry's
major
be
markets.
*
television
witnessed
and
sales
at
of
about
billion
$1.4
with $1.3 billion in
TV
sets
to
radio,
the
compared
Sales of
1952.
to
for
million
a
a
this
repre¬
increase
from
earlier, it is not
year
million
1.8
set
normal stock
sets.
manufacturers
watching
trends
At
1.6
present
carefully
are
in
take
level of
demand
sets, and will doubtless
for
1954
gear
output closely to retail volume.
6,145,-
The Advent of Color Television
gain
a
of
12%. Throughout most of the year
demand
for
TV
ahead of
the
preceding
sets
well
ran
>
The most important single event
1952, while radio sales to¬
12.2
taled
the
increased
public
slightly, to 6,375,000 from
000 in
1953
factory values
to
far out of line with what I
to
In
down
substantial
important developments of 1953 in
of
there
several
fairly sharply to
stocks
Although
year.
may
1.2 million
each
that
for
level of 1.9 million at the end of
of the
some
sudden
so
months, with the result that No¬
sents
be
was
vember and December output had
the
pects for the current year, it
re¬
beginning in Septem¬
was
elec¬
smaller
parts also contributed to the rise.
we
normal
not until July
was
was
equipment and replacement
Before
to
However, the drop in
retail sales
to
trial
that
hand at the
on
ber
a
think
I
mind
in
relation
outlets; it
t>%
of
beginning in
retail
began
condition
end
year,
that
October
was
off 23%.
of
sales
to fall behind.
continued
the
of
-
the
December
at
This
through
with
but
year,
September
the
result
volume
I suspect that most
this drop can
in
1953
patible
the
was
color
standards
advent
TV
of
based
com¬
the
on
developed
by
the
RETMA National
Television Sys¬
tem Committee led
As
forts of the
of
by Dr. Baker.
result of the cooperative ef¬
a
have
a
industry
than
more
two
color
over a
years,
period
which
system
dra¬
matically enhances the entertain¬
ment
value
widespread, but often incomp^te,
same
time, this system fully
publicity
given
to
color
TV
last
of
television.
has
tion of the NTSC color system by
black and white
the FCC in mid-December.
value will in
evidence
since
that
become
formed
as
the
There
sales
been
made
by
no
in¬
"evolution" because the length of
for
January
hand, increased
pur¬
place
alongside black and
revived interest in black and white
the part of consumers.
trend
continues,
the
If this
inventory
situation may have ovei -corrected
itself in another month
or
two.
will depend
its
white
the availability
upon
on
manufacturers
the ingenuity
in
bringing
about reductions in the very
cost
of
range
the
first
only
a
few hundred color
sets have been made,
production
guess
high
sets, which will
in price from $800 to $1,200.
To date
another
*A talk prepared for
delivery by Mr.
Sprague at meeting of the New York
Society of Security Analysts, New York
City, Feb. 18, 1954.
say
of color receivers and transmitting
of
weeks appear to reflect
I
time it takes for color to find
equipment, and
on
be impaired
way
by the evolution of color.
dealers which have been reported
recent
in
has
chases of black and white sets by
in
the public
receivers, whose
better
much
figures
pro¬
public
to the prices and avail¬
not yet at
the
At
tects the sizable investment which
fall, culminating in the authoriza¬
is
now
we
be traced to the
19.
backlog of
defense
orders
on
Virgil C. Sullivan retired from
January first (1954) of about $40 partnership in Granbery, Marache
million. Capitalization could hard¬
keep
in
corrected.
combi¬
nation
are
sidered
a
to
August that this condition
or
of
increase
20%
retail
New York Stock Exch.
through
has
inventories.
of
well
low
in
late
necessary
prevent further accu¬
demand and to the number of
ability of color sets, and although
bership of Hollis Hunnewell to
Benjamin T. Burton will be con¬
Quiet Heat Corp.
to
stocks of TV sets
about
previous .high
repeat.
conditioning and
acquisi¬
became
$5
the
many
dividend
very
a
stock
rental
has
and out of the industry
in
given to production cutbacks
by the indus¬
try was ap¬
proximately
.
been
Emerson
white; and (2) there
a
justification
At 29 the
5.6%.
last year.
Emerson Radio
tion
black and
$4 84,
were
ample
36%
by the
—
per
5% stock dividend declared
a
about color TV has been removed
lutely convert spectrum spectacles
1953
in
There
a
bearish
splendid cushion for the $1.60 rash
dividend
plan
to
well.
as
earnings
entered
ible"
including refrig¬
freezes, electric
completed
only
last month, of Dexter
Co., it will
now
turn out washing machines
oil
Color TV will be "compat¬
your old set will abso¬
wide
a
acquisition,
the
emergence of certain facts:
has
^anges and room air conditioners.
brought about
by two main forces. First of all,
"iffing and anding" of buyers
but
line
erators, deep
coast. This has been
(1)
radios,
last December.
With
one
and
vital
are
appliances.
field.
white
maker
conditioners
of
"=ets
and
North
749,890 shares of Sprague Electric
traded over the counter around
leading manufacturer of television
black
of
big
a
capacitors
the
old
and
Co.
resistors and ceramic coated wires.
company
Philco is not o^y a
people
were
articles; and Sylvania is one of the
top tube manufacturers.
hesitancy in buying new sets, the
idea being to String along with
back to 1926.
The
im¬
portant in both sets, broadcasting
and
sets,
Philco
overlooked in the attention many
War II.
its
Earnings 1 larger radio-television volume and
bomb direction systems.
since
and
control
capacitors,
present
history, in¬
cluding the peak period of World
in
beginning of last
search
virtually at
year
what
does
retail
that
important fact
previous
1952
getting close to
.:",
* ; •
Magnavox has rather specialized
in
production
of
high
quality
r a d i
o-phonograph combinations,
and TVs;
and in common withother
electronic outfits, it also5
status.
Adams, Mass., largest producer of
ac¬
The
sales of TV sets were
$4.2 billion in
' is
common
Its
was
more business than in any
the
mowing
sales
try did
sells around 42. Raytheon is
showing considerable progress and
ence
long an energetic performer
the NYSE, is currently earning
its $1.20 dividend almost twice.
of
three billion dollars.
Last year the electronics indus¬
c o m
dividend
uses,
ex¬
$1.68
was
over
industrial
sales, because of expansion of
broadcasting facilities. Estimates Radio-TV business in current
year will reach $1.3 billion, while military business will be
it
$59%
from
million for
5/31/53)
ment
years,
fiscal year
of
Sees growing market for electronics in
gain in net
five
figure
the
share
per
past
this
in
$180
over
dramatic
the
but
mon,
down
1950.
and looks for increase in TV
Western
uneven
Government, and production of
the
is
military electronic equipment has been raised ten-fold since
Earningswise, it
little
a
and
electronics
in
tomer
on
industry,
re¬
especially in the last quarter, with
unsold
sets
estimated,
at
one
point, above 2% millions.
This
on
the 1953 peak year business in the
Mr. Sprague discusses the advent of
color television.
Expresses belief color will not make black
and white television obsolete.
Points out biggest single cus¬
commenting
electronics
devices
course,
have
Its
RCA.
speculative
After
back¬
for guided missiles. It also makes
radio
and
TV
sets
retailed
by
in
dend
in
search
com¬
this
million
$190
Its government busi¬
slants
ness
as
as
in
the rank, I believe, of
largest producer of TV and
white will
that
factor
a
defense or¬
big
Association
Manufacturers
Chairman, The Sprague Electric Company
and
and
the big broad¬
time; and now
quite
with
cast
be
Chairman of the Board,
Radio-Electronics-Television
smart merchant.
a
fifth
some
By ROBERT C. SPRAGUE*
smart manufacturer
a
radio tubes.
a
solidly favorable factor. Yet with
all
So
pun—from
and
is
essential worry about color—black
lumbia
with
task and talk
our
$700 to $1,200, mink
ever
She's
back—excuse the
you
Industry's Great
Asset: Diversity oi Markets
1948, 10% in 1949, 100% in June,
1950, and 10% in December, 1950.
Emerson
be
50c
earned
ended
Electronic
Emerson
The
shares have proliferated via stock
dividends
as
follows:
100%
in
TV, the glamor girl of the elec¬ will be relatively few color broad¬
tronic industry, continues to spar¬ casts, and (3) the new sets ("col¬
kle and fascinate; and all indica¬ ora tuners" I; call
them) will set
suggest that she'll
in
dividend
the fiscal
10/31/53.
thrice
year
"Winning in Wall Street"
of
NYSE and sell¬
on
10%.
at
was
assorted ideas about sets, sales
some
ing
1,935,187 shares
listed
common
runs
month
that not
and regular
will not begin for
or
so.
over
Continued
I
would
150,000 color
on
page
57
Volume 179
Number 5304
...
The Commercial and Financial Chronicle
(993)
Brig. General David Sarnoff, Chairman of the Board, Radio Corporation of America
Sees No. 1 wish
You
Television Tape Recording
well
imagine the future importance of this devel¬
education, industry and national defense. And you can see
its entertainment value to
Electronic Photography
the
1956, RCA's General Sarnoff will celebrate his 50th
year
can
true!
opment to television broadcasting, to motion pictures,
by RCA Opens New Era of
In
come
in radio. Looking ahead to that anniversary, in
1951 he asked his
family of scientists and researchers
for three
gifts to mark the occasion. His three wishes:
(1) A television tape recorder, (2) An electronic air
conditioner, (3) A true amplifier of light.
you,
in
your own
home. There
tape equipment could be used for home movies, and—
simply by connecting it to your television set—you could
personal recordings of your favorite TV programs.
make
Expressing his gratitude for this "gift," General Sarnoff
said it
was
only a matter of time, perhaps two
years,
before
the
finishing touches would bring this recording system
to commercial
reality. He described this RCA achieve¬
ment as the first major step into an era of "electronic
photography."
Gift No. 1—the video tape
recorder—has already been
successfully demonstrated, two years ahead of time! Both
color and black-and-white TV pictures were instantly re¬
ming from continuous pioneering in research and engi¬
corded
neering, make "RCA" an emblem of quality, dependability
on
magnetic tape without any photographic devel¬
Such achievements
as
Television
Tape Recording, stem¬
and progress.
opment or processing.
Radio Corporation of America
World leader in
radio—first in television
I
17
\
4**#*Fi
18
The Commercial and Financial Chronicle
(994)
Radio Act of
the
Television's Role in Edncalion
reserve
President,
Board, Chicago Educational
Chairman, Advisory
set
was
that
de-
to
Commissioin reserved
Educational TV both from the industry's
the
in
nels
that
too
bered
public's standpoints. Stresses value of TV as means
of expanding and intensifying public education.
and the
band.
FM
the
in
channels
they
the Fed¬
eral Communications Commission
issued its final television alloca¬
tion
which
report,
the
end
of
t h
e-y ear
had
freeze
it
placed
on
the
construction
additional
of
Television
Educational
for
to
AM
than
More
educators
70
ap¬
fied
the
to
than
gist of their testimony
that
was
provided
the
for
time
FCC
out
a
work
to
plan
whereby
sta¬
will
tions
serve
Rettaliata
the
yet not interfere with each
other.
the
of
ognition
television
for
improvement
lectual
*An
address
by
Dr.
Rettaliata
been
casional
Congres¬
allocate channels
to
to
viewed
by
£1-
1954.
that
when
by the institutions.
J
offering public
However
to set aside
"salable time for such
or to tie up studio facil-
g
could
stations, by
must appeal to
commercial
their very nature,
sjngie donor.
general audience and cannot af-
Congress wrote
methods
be
mav
may
meinuas
corucmpiaiea
^
broadcasts. Both of these stations
were
expedited by funds from a
,
Again,
♦
oe
nbh-commercial educational sta- programs satisfy enough listeners,
«onsof these stations, in it is expected that many will conHouston Texas, has been broad- tribute nominal annual gifts to
cAastl"g fo.r severa,1 months. Los support more of them At this
Angeles is completing its test time, there are more than a mil-
no
■
*
contemplated
.
support
station
7il
siauon support
the future? Spme of the
•
ln
f. FCC
,
presentation of oc-
expect-them
the
will
jj0w
has granted 21 con- summarized:
straction permits in 18 states tor
If a non-commercial station's
educational insti-
programs
programs
necessity, did not
quick decision. It re¬
the history of education
in
to
Educational TV
•+
most
their
a
recall
can
one
a
in radio and broadcasting. It
before
time
tutions for the
Communications
bound
generous
of Supporting
Methods
_
tio„ talpnt whose salaries are paid
£
^0n talent wnose salaries are paia ltself
1, •
ff
■
i
service
per
day that a non-commercial station
TT.„c.f nnprate
operating costs of the station by
suppiyjng program and produc-
of
^0t set any
op hours
number
minimum
pared to subsidize indirectly some
edu-
and have
great educational ciualitv
for exclu¬
course>
channels
is understood, ol
tbat aR ojt- them are pre¬
although it
ing,
Fcc has
the
because
?ltl0n to finance the undertak-
.
Commercial stations
use.
obvious
was
institutions would not be in a po-
bettei
would be
specific
some
S.
u
have developed many programs
the
and
venience,
come
meeting of the La Salle Street Women,
Chicago, 111., Feb. 25,
11
of
u
reserved exclusively for
cational
solely in the public interest, con¬
standards.
They organized the Joint .Comrnit-
a
edict
sional
for
were
use.
Federal
The
intel¬
national
of
cultural
and
and
Channel
educational
Commission,
of
potentialities
teaching,
sive
of
reservation
the
VHF
local
the
behalf
in
Ij
public
if
served
educational and cul¬
institutions of Chicago, re¬
quested
freeze, farsighted
educators throughout the nation
had time to crystallize their rec¬
During
of
major
tural
and
the
that
one
institution filed
and,
\
it
that
The Commission finally decided
xu
leading local
the
*
educational station.
The .®tatl,°j* opf IrL
yersity of Houston, KUHT, was on
aif ln
™ an estimated
^d.get of ! ?u L,
P.f
educational statl01?? w, c
as much to operate
as the tarSe network stations| heCa-Vfl much talent and facilities
+e+.
L^onsequen iiy, it was cultural wlll be prpvided without cost, and
odvious
the educational and
,.
Decision of the FCC
Final
of
Conseauentlv
make avaiiapie.
make available
tn
Promised to
The
non-profit basis.
a
own
statements
the
the
of
on
My
every-
t
pa r
use
nrnmiscd
tinn<?
found to finance their
means were
that commercial sta-
service time
two
ent upon the
public
limited to use of the
were
to
was
modern life, and
that designated channels should
be reserved for this purpose while
be
country
it
if
keep pace with
to
situated
tool
half of the
providing their education.
supported and dependannual generosity of
many" local contributors to avoid
operating at a deficit. "
would
results
better
vlTm
$150,0°0
tuition that is more
a
privately
be achieved if educational groups
this
that
money
from to maintain them?"
A number of authorities have
No
approximately
but
estab-
are
the
come
in-
fundi
educational establishments are
who as-
and
applicants,
serted
American education needed to use
tus
J. T.
mercial
The
television sta¬
electronic
All
withholding them from com-
rant
educators
tions. The hia¬
Dr.
of the channels to war-
educational stations
lished, where will
university collects from
or
cost of
would
use
the student comes back
as
developments are to be contributed to the field by educational
television.
Some have asked: "After the
proposed
cultural
or
has extra
ever
its students
than
educators
More
prepared statements.
college
suf-
make
not
to
that
contended
available
the
finance
educational
No
many
ficient
non-com¬
stations.
additional
800
mailed
for
need
television
had
of
testimony
who
witnesses
peared before the FCC and testi¬
mercial
the
much
top
April
to
sthutiot
Commission
the
Last,
consider
been
But,
later witb a few ideas for his protangible fessor, so it may be that some new
station
readily available, with-
were
done
be
early days when
out reservation.
pub¬
new
lic domain.
the
signaled
r e
tee
stake their claim in this
and women who have
successful in the business.
men
when we went
to Mr
Ryerson. There had been
some indecision about what should
_
Almost two years ago,
last
before
remem-
the
of
Not
record.
educators
few
themselves
availed
It
ideas in the way of
Granted, we edu-
cators have to be educated by the
even
evidence of progress was
chan-
some
new
programming.
^he committee has made a good
1945 when the
not done until
was
during the last two years in providing educational television.
Points out advantages gained by combining general commer¬
reserve
Thursday, March 4, 1954
develop
will reach our goal.
several
later
*'41>
.
I also am persuaded that, in the
future, educational television may
continued help, I am sure we
your
campaigns waged
specific
radio
channels for educational use, this
spite
Chicago educator recounts the efforts to establish restricted
educational channels on television, and the accomplishments
cial television with
aside for edu-
set
remembered
for
has been due to the women in the
participating communities. With
the same year no
in
were
It
cation.
pleasant
particularly
is
to be able to tell this audience
tonight that much of the effectiveness of the fund raising effort
me
the Radio Commission
up
channels
Television Ass'n
It
for
recall ' that
could
It
after
even
RETTALIATA*
Illinois Institute of Technology
By JOHN T.
1927, it did not
special channels
any
education.
.
.
lion and a half TV sets within 50
miles of Chicago's Loop. Subscriptions
Qne
2g
permjts
was
$1
of
one-fifth
from
year
per
these
of
set
only
owners
S '°nfXprI1."or,' dfI d 'com6
mnnftv Lrvire Thel cannot^be
Sranted to St. Louis, which is test- would provide more money than
ing now and expects to go on the needed. Chicagoans annually give
nrh^riiv concerned withpvah.4 air s°on- The university of Mich- March of Dimes, a dollars tocamnearly a million national the
primarily
with evalua- .
.
urnajpa_finff
SjTnV twfn„P»tinnS
tn t"
igan is broadcasting over the March of Dimes, a national camti(p of their educational output,
*
facilities of a
commercial
Paign.
an|l they ordinarily are not set up station in Ann Arbor while con- Some also believe that the state
to judge the ecucational qualities
struction of it^ own station is in
legislatures should make appro01 u*
progress.
priations to support the stations.
Last, educational television must
Th
. hot t
rnlWp «taSome would prefer not to see this
be largely non-commercial to be
tion
t Eagt Lansing is on fhe air
haPPen- In any case> ^ is a source
indifferent to influences that can
Th
g College sta- of suPP°rt that could be considn.rcy%
n
tend to force a distortion of
^oDerafion
ideas.
EfhUrat^ni ^^honlT^e^b^'to
other group,should be-able to
present all sides of all issues and
provide
viewers^ with objective
analyses of issues that many commercial
stations
often
cannot
MANUFACTURERS OF
touch upon to
RELIABLE
ELECTRICAL AND
with
flicts
avoid possible conand
patrons
pressure
groups<
.
ELECTRONIC
The reservation of 242 channels
COMPONENTS
Sprague manufactures a diversified line of
film
electrolytic, mica, ceramic, and plastic
capacitors for use in the electronic, elec¬
trical, and automotive industries. Sprague also
manufactures
printed circuits, radar pulse-form¬
/
sistors. It is the
wirewound
a
oratories in the electronic components
Some 175
ment
of
people
new
are
components, dielectric materials,
and related apparatus.
MASSACHUSETTS
and
welfare
be able
may
this self-interest.
a
organiza-
to underwrite
present,
present
the
of
surprising number of the donors
to the Chicago fund campaign for
Channel 11 admit that they do
rooms,
not
television sets but
expect to acquire them when the
some
educational station begins broad-
teachers
to
locale
and
value
particular .channel.
the application for an
station -construction per-
was
of
tion
Chiedu-
In
speeded
the
the realizavalue of the
by
great
channel, as indicated by the purchase by the Columbia Broadcast-
System of!-a local commercial
ing
channel
tor
Chicago to Build an Educational
Channel
t
nm
J
ih
that
rrio^
fn
Chicago
permit
to
s
u
oWn
tn
wi
anSann
application
build
an
For example:
yet
vnn
fnr
for
n
a
own
There
are
quite
means
are
wh0
about 80%, of the $1,100,-
or
000
believed
local station
needed to
and
build the
operate it for a
period of two years.
a
school
find
not yet viewers
television
This
wider
be-
will
peal to
and
a
closed-circuit, into their class-
some
programs
of the net cost of the
vision
than
time
to
to
hire
visit every
conducted
pro-
in recent
some
on
tele-
special
school,
commercial
range
may
people
television
years
courses
have proved that
can
be presented by
TV. Viewers have been given the
opportunity to take written examinations on the course and have
earned credit toward college degrees
of
choice
sustaining
If
Chicago
wishes to
the
the board of education may
it more economical to pay
upon
of choice these In some
prove valuable to commercial teleyision fay
viewers.
If
system
few with very -stations in Cleveland and Omaha
to own television
cause commercial TV is geared to
a general audience in most cases,
rather than to special interest
groups who are highly selective,
Educational
as
school
Te t
adequate
ieaders, headed by
example:
For
casts.
^ucational people seek.
A com- vide the freedom
•ready laiSed approximately $870,000,
Establishing such
sets
$b,UUU,UUU.
groups in
•
tions
public
vary
^"^o^^lr^t^sub^rb^^aT^lby
the suburbs nas at
ADAMS
civic
and
to join the television audience. A
mittee of civic
NORTH
for
realization that the new educa-' the cost of special programs that
tional stations actually can serve they would especially like to
channel has been granted.
SPRRGUE ELECTRIC C0IDP0I1V
stations
be
costs
period of time. Based on
this, it is possible that some cultural and educational institutions
stations will persuade more people
field.
employed in the develop¬
their
operate
it
what
given
in inverse
mit
military electronics.
complete Research and Development lab¬
to
educawill
managers
determine
to
likely to
cational
•
most
able
experience,
some
station
vation is
cago,
'
leading
Sprague maintains one of the largest and
channels
educational
totaling 248.
the
producer of magnetic ceramic materials for tele¬
vision and
these
With
tional
ratio
•
only producer of ceramic-coated
Corporation of America,
under the
As a practical
matter, the period of each reser-
high temperature magnet wire, which has wide
Ferroxcube
The Commission report left in-
now
re¬
military applications. It is half owner of the
-
for
While time could not be sold
state network is being
the country
definite the period of reservation
:
filters, borocarbon resistors, wirewound pre¬
cision resistors, and power-type
A
planned for Oklahoma
use
'
ing networks, radio interference suppression
ered-
and there would be no commercials, gifts for station operation
chairmanship of Governor Mur- or for production of a special proray
Another statewide network gram could be accepted. Contrihag been approved and financed butions can be acknowledged on
by the wisconsin Legislature, the air in a way, that,, indirectly,
Pittsburgh and Detroit are among will be good institutional publicthe localities with FCC construe- ity for corporate donors.
license
tion permits. Both are conducting
for edu- city-wide fund drives.
was, at first, 'the most
controversial aspect of the FCC
Advantages to TV of Educational
allocation report—even though its
Channels
lifting of the freeze made a total
Much of the opposition presented
of 2,161 local channels available when the FCC was
hearing eviin
1,300
communities
spaced dence was motivated by self-inthroughout the 48 States,
terest.
But now
there
is some
throughout
cational
paper,
for al-
most four ^ears 0n a commercial
payment
cases,
viewers
may
of
tuition,
tuition payments
pay
the
cost of
those prpgrams.
One
thesg
of
the interesting results of
experiments
hass
been
the
ap-
demonstration of the effectiveness
wider variety of tastes
of education by television. In some
moods
at
any
time,
can
is
that
not to the benefit of the industry
in general?
cases
the home viewers came to
*be camPus a* the end of the
Continued on page 48
Volume 179
»
4*.
^
Number 5304
The Commercial and Financial Chronicle
...
^
Sq. In. Picture
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ilt
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20
The Commercial and Financial
Chronicle
(996)
of
monitors,
be
used
Important Uses of Television
In Industrial Operations
A
erator
Mr. Wilson describes various
uses
it
of television in industrial
observation.
be
equipment of ITV, i.e.:
Industrial
Television, is less complicated and less expensive than ordinary
TV, and finds most valuable use of ITV is in promoting safety
in mining operations and in minimizing losses from breakdowns
in long distance belt conveyor systems.
out
of
industry
as
of
means
a
providing remote
vision,
enabling the
more
than 200
using
organi¬
zations
dents, operat¬
ing costs, and/
capital
or
in¬
circuit,
G. H.
in¬
or
tele-
dustrial
have
television
a
when
put the hoist in
will
installed in
of
means
knowing
when
cables
is
is
provided.
designed
tions
to
in
time to avoid
prevent
accident and
an
damage
to
up
sixteenth
plus
ividual
This equipment
withstand
or
to
equipment.
conditions
of
under
more
vibration
closed
used
circuit
camera
has
will
work.
need
visual
i'iculties
are
vided.
proven
television
of
cement
kilns.
heat
will
pro¬
to ten kilns by one
Any number of television
cameras
single
may
monitor,
be
switched
and
any
to
a
number
ITV
control
be
can
that
be
can
It's
use
operator
thus
product
uniformity
time
same
greatly
improving
and
reducing
at
the
operational
ferred
to
use
as
of
entertain¬
an
has
obscured
the
fundamental
its
Purpose. Basically television is re-
engineering dif-
m?te vision, as its definition im-
numerous,
To more fully evaluate the feasibility of television for a given
application it is essential to know
up'pf it
fan,,itv
-by accomplishment—progressed
+u;c
the system
the
what
successful ITV installa¬
installahas determined just
user
be
must
ufacturer's
seen
the
and
engineering
wpVp
rtirPrfpH
directed
were
equipment
offer
to
should
such
be
war-
industrial
greater
Legg Admitting
E*nCk,,Ex-I
on March 11 will admit
Mann Legg to limited
Partnership
the firm.
in
Dempsey-Tegeler Branch
pre-
engineering
PASADENA, Calif.—Dempseythat the user is not left
Tegeler & Co., members of the
of his probable unfamiliarity with its purposes.
New York stoc* Exchange, have
so
...
In
...
mercy
view
of
traordinary
which
,
television's
commercial
will
continue
,
of
consists
television
a
accompanied by
for
mept of Karl W. Lundberg.
as
camera,
associat¬
an
ed power unit, which instantane¬
ously transmits a continuous
picture over co-axial cable to a
viewer,
the
an
or monitor. Thus, through
"eyes" of a television camera
observer is able to see an oper¬
ation,
process
which
may
phenomena
or
be too distant, too in¬
accessible, or
directly.
too
dangerous
to
view
Where
distance... .between
an
operator and the' process he con¬
precludes the possibility of
trols
direct observation, as is frequently
the case where centralized control
is employed, ITV reduces the pos¬
sibility
of costly mistakes-^nd
accidents.
Since
"seeipg
lieving," television"'p-fd
of realism
sense
achieved
short
by
of
is
be¬
i d
v
e s
which cannot be
other
any
physically
bringing
the
vice
Likewise
versa.
remote
individual of
because
quired
of
an
its
one
size, formerly
re¬
efforts
of
possible injury
of the
of
the
chining
through
high
the
The
ma¬
explosives
"eyes"
TV
studio
of
the
and
in
should
compact,
ment.
tems
tele¬
modern
transmitting
rightfully
sta¬
straight-forward
.
.
H
tubes,
camera
and
picture
The
can
continuously
without
and
protection
perature from
zero
degrees Fahrenheit,
♦From
72.91%
80.45%
$ 18,319,327
$ 16,714,694
$ 16,782,998
$ 11,198,704
$ 17,793,534
operate
dependably
in
,
.
..
.
$ 24,851,281
$ 23,930,805
.
.
$
$
$
Income
after
$ 98,822,143
-
$ 20,052,275
.
.
3,943,448(3)
3,942,200
6.07
$ 19,988,605
$
$
8.90(c)
4,294,103
r
3,873,370
$ 14,175,149
$
8,156,294
6.32
$
3.49
$
2,704,759
$
2,432,687
$
262,483
$
585,713
$ 11,207,907
7.17(c)
~
Surplus
$
5,137,894
$
1,697,300
$
3,067,454
770,792
$
I' 566,608
$ 19,210,533
$ 19,217,813
Retired
15$000
2,349,475
Shares of Capital Stock
3.11
|
$
(a)
Balance of Income Transferred
Earned
$ 12,029,664
$
4.30
s
(a)
Sinking Funds
8.19(c)
'
$ 98,870,492
,
$
$ 15,990,714
$
$122,894,179
18,469,252."
$
•
4.94
$ 20,907,833
Charges
$
4,061,561
6.30
2,439,475
2,125,000
$ 12,356,652
Outstanding
at End of Year:
Preferred
Common
Stock
Stock
(b)
Dividends Per Share Paid:
Common
Tons of Revenue
.
.
.
.
$
2.10
$
5,302
43,744
$
Passengers Carried
$
150,00(1)
2,125,000
;
$
$
5.0 0
43,050
$
33,411
$
.0134
1,582,234
573,680
$
.60
7,357,955
.0133
1,423,636
.0257
5.00
4,361
39,723
568,031
$
$
8,262,713
$
.0135
1,465,186
.0276
$
1.20
4,260
9,140,307
.0144
551,133
.0275
$
1.70
1,320,370
500,413
$
150,000
2,125,000
5.00
9,269,600
.0148
1,206,164
Passengers Carried One Mile (Thousands)
Revenue Per Passenger Mile
Average Nwnber of Employees
-
4,205
43,896
8,787,838
....
.
5.00
$
5,672
.
Freight Hauled (Thousands)
Revenue Ton Miles
(Thousands)
$
3.00
$
-
-
•
Nene
Stockfgiving effect to stock split)
Common Stockholders at End of Year
589,315
.0245
$
Miles of Road Operated at End of Year
.0254
.
16,402
17,048
17,811
17,400
17,013
$ 72,889,512
Total All Wages
$ 75,362,083
$ 72,645,335
$ 63,679,362
$ 64,249,296
4,078
4,080
4,145
4,146
4,146
(a) Contingent Interest and Capital Fund requirements eliminated
by
tion of General
Mortgage in 1952.
equip¬
average home televi¬
receiver
alone requires at
that many for its
operation.
Some equipment
contains only
17 tubes of which
only three are
in the
camera.
It
any
(b) Based
The 1953
to
Report has been distributed
Seaboard's
tem¬
degree to 150
stockholders
and
The
securityholders. A
tained
copy may
be ob¬
by writing to:
on
shares outstanding
effect of the
earnings
Norfolk 10, Va.
Company
as
on
the basis of 2% shares of $40
par
to reflect
value for
value (stated value $100), which became effective July 23,1953.
share for 1951 and prior
none
of satisfac¬
of December 31. Years prior to 1953 restated
of which
was
(c) Taking accelerated amortization
CUMMINGS, Secretary
Seaboard Air Line Railroad
per
Preferred Stock,
Certificates
W. F.
as
split-up of Common Stock
each share without par
reason
years are
outstanding
on
on
emergency
deductions for Federal Income
tax
after providing for dividends
December 31, 1952,
or
on
thereafter.
projects covered by Section 124A
purposes
Federal Income taxes in the
years 1953,1952 and 1951
reduced the accruals for
by $4,280,000, $3,375,000 and
$1,885,000, respectively. These tax reductions
Stock,
as
restated, in the
were
equivalent, per share of Common
1953, 1952 and 1951 to $1.82, $1.38 and $0.89, re¬
share of Common Stock shown in the above tabulation.
years
spectively, of the earnings
per
consumes less
address by Mr.
Wilson at
Meeting of the American In¬
Mining and Metallurgical En¬
New York City, Feb.
16, 1954.
an
Annual
gineers,
.
Contingent Charges
sion
the
.
tele¬
least
stitute
.
Most present
day ITV sys¬
less than 25
including
74.47%
$135,536,777
reflect
contain
tubes.
.
.
....
the
tions, the words "industrial
vision"
.
Average Revenue Per Ton Mile
employed
$111,211,467
Preferred Stock
camera.
that
'
72.79%
or
While
the
word
'"television"
conjures up visions of highly com¬
plex and intricate apparatus such
as
$116,886,004
72.03%
Net Income Per Share of Common Stock
(b)
Income Applied to:
cases
destructive testing is conducted
by
personnel hundreds of feet
away
who
still
have
close
control
vision
•
Contingent Charges
to
In
or worse.
operation.
of
$112,836,072
Times Charges Earned
Net
1949
$149,337,054
Income Available for Fixed and
sort, ITV can and has saved
by permitting remote con¬
lives,
trol
Taxes
Report
1950
1
(Expenses to Revenues)
super¬
vision which exposes personnel to
1951
$160,584,277
Capital Fund
nature, require close
very
1952
1.
Operating Ratio
'
Many industrial operations are
dangerous and, because of their
1953 Annual
our
$156,643,985
Operating Expenses
Fixed and
by
operation which,
workers.
Operating Revenues
television
control
the coordinated
several
or
from
1953
means
remote process to the observer
permits
a
Highlights
of
SEABOARD AIR LINE RAILROAD COMPANY
.
—
s.
-
-
"WW*'
■
^
°Pene^ a branch office at 465 East
Green^treet under the manage-
; ex-
growth,
unabated
,
„
ITV, basically
often
a
ac-
BAETiMOBE'
^ohn
Legg & Co., 22 Light Street, memBeverly
specific need. Present day
suppliers of closed circuit television
John C.
change,
toward
toward
that
pared
of
b£rs of tbe ?lew
man-
r e c o mm
,I7ar
as
rnrnni;-hmpift
itself.
In every
In
tion
medium
general sense, those of
a
rocn(1„f
sufflciently m consideration
thls respect to
rant
serious
currently available for ITV equip-
in
e
is far from maturity, it has
the several types of camera tubes
come,
*hv
whiiP^iP
extendlnS this faculty. Whi
vision
the capabilities and limitations of
at the
highly trained
its
medium
Plies. Keeping in mind how extraordinarily valuable sight is to
advice
permit remote control of six
that
appreciation
af-
vision,
commonly re¬
Wilson
ize
ment
that
so
several
are
...
when suitable enclosures
for
loraed. While tne
^PnHntinns
mendations
successfully to view the in-
teriors
severe
and
the
Demonstration
one-
inches and will operate
successfully
whom
relieve for productive
vibra¬
minus
the
outstripped by its expansion in
closed circuit usage, as has been
predicted. However, we must real¬
disengage from the wheels, as ment. Since the camera tube is the
they have been known to do, thus heart of
any television system, its
enabling him to stop operations capabilities and limitations be¬
U1U11I(U
tion
be
ested in the possibilities.
soon
mine shaft view-
a
to
Thursday, March 4, 1954
organizations have become inter-
mo-
without danger to personnel,
camera
rise
.
at least a decade, it may be at first
difficult to conceive that it could
remotely
controlled
drilling
equipment will eventually give
proper
to let the op-
much as 1,500 to 2,000 feet
nf?ed
observation is sufordinarily and by equally greater ficiently critical to currently reamounts if additional amplificadirect observation by an in-
vestment.
Closed
oper¬
unmistakably
television
working
the
as
to
reduce acci¬
in
irig two sheave wheels providing
the
control
operator
1,500 feet
away with a positive and fail safe
Closed circuit television, while current than a toaster and weighs
comparatively new, is being used less than 140 pounds. The camera
in approximately 25 different and monitor may be separated by
types
the cage
to
exists
remotely
of
improving
It is reasonable to conclude that
current trend toward use of
con¬
Engineers
use
know
safe
A
he controls precludes the possibility of direct
Points
is
tion
operations, particularly where distance between-an operator
and the process
with
in
camera
Specialty Corporation, Lancaster, Ohio
is
potential danger
man-skips.
and
conditions.
which
suggested the
Supervisor, Electronic Sales,
Power
the
personnnel
ated
costs
may
reason,
organization
with
connection
By G. II. WILSON*
Diamond
mining
cerned
to
within
simultaneously.
.
.
Volume 179
Number 5304
...
Financial
The Commercial and
Chronicle
*•
•,
"
+
-
*
,
,
..
(997)
;r "*•'
ACTUAL
SIZE
kind of transistor
new
breaks the barrier
electronic
to
application...
»»»»;
V/YYtYS.\
..
.
and, eventually,
IT'S an entirely Philco scientists, and it
new kind of transistor,
developed by
computers
solves
tions of the present,
major problems that to date
two
have blocked the
tors
widespread
in electronic
For this
new
(called
ment
a
contributes the
use
of transis¬
develop¬
surface-barrier transistor)
to operate at
high frequencies with low power consump¬
tion, and, second, to be mass produced with
precision
at
high speed.
Translate this into
and you get,
...
1
set
a
type, yet uses
bulky,
tubemuch elec¬
vacuum
only 1/1000th
as
only opened—the great
developments made possible by the surfacebarrier transistor will ultimately
benefits
to
hard, practical terms
for the first time, things like—
powered only by
two
penlight
Philco
a
visible
engineering phase, the "surface-barrier"
surely, someday, open the
gate to more
and better civilian production
utilizing the marvels of electronics. It is
becomes
PHILCO
a
Ranges
.
..
...
name
unique standard for
achievement in Television
Refrigerators
military electronics industry.
.
Freezers
.
.
..
Radio
.
.
.
.
Electric
and Air Conditioning.
And the end is not in
sight!
problem,
engineers etched Germanium elec-
trochemically
with
spread its
90% of the five billion dollar
domestic and
its
transistor will
from research of this kind that the
But the door has
To solve this basic research
tiny, high frequency military radio
that is
electronic
tric current!
applications.
Philco Research
ability, first,
compact
that will perform all the func¬
to an
incredible thinness,
tolerance of half the
wave
length of
light! This made it possible, for the
cells, yet has a daily operating life of
first time, to
months.
surface characteristics only, without the
...
vated
a
by
match-box size transmitter, acti¬
sea water,
homing signal for
other
that sends
rescue
possible services.
ANOTHER
an
automatic
operations and
employ Germanium for its
drawbacks of its internal
Here,
results
again, is
an
composition.
example of the
flowing from Philco's continuing
program
FIRST FROIV|
once
of basic research. Though still in
D 14 I I
r
Q
RESEARCH
•
'""
21
22
The Commercial and Financial Chronicle
(998)
through the lend¬
to create funds
Needed: A Catalyst to
Maintain Economic Progress
ing
in such
effect of economic conditions
Traces
supply.
Holds it is function of Federal Reserve to
apply either stimuli or brakes to business activity, without
money
changing bank loan standards.
Places emphasis
the
economic stabilizers to avoid business fluctuations.
In
his
"Economic
Report," the
President refers to several condi¬
tions
essential
Two
ress.
to
of
economic
these
increasing costs of living.
Savings Since 1939
to
(1)
money:
growth of
capital
American
deterred
savings
real
any
depends; (2)
"a
supply
of
in
with
money
keeping
increase
in the
physical
of
volume
ductiop
pro
trade."
and
Traditional¬
ly, saving has
a
great
Arthur A. Smith
been
American virtue. When the
try
veloped
needs
coun¬
much less de¬
now,
our
capital
young and
was
than
exceeded
save
ourselves.
from
abroad.
what
Large
In
could
we
sums
the
of
to
their
fact,
those of
And although
exceeded
similar period.
rates
are
factor in en¬
a
couraging savings, we do not save
in
proportion
To
many
to interest rates.
people the interest rate
is a secondary determinant. Larg¬
est influencing factor is income.
Another point worthy of note
is that the vast majority of peo¬
ple who save do not themselves
determine
the
decisions
savings
with
use
put.
are
made
are
institutions
by
economic
real
their
which
to
Such
largely
the
whom
savings are entrusted — banks,
savings and loan associations, in¬
surance companies, etc.
came
course
time, however, we were able to
supply to an increasing extent
the
been
not
inclination
In
1939.
have
interest
the
their
in
since
save
have
people
Their decisions have
influence upon
tant
impor¬
an
the
economy.
But let me hasten to say
that such
decisions are not purely arbitrary
necessary capital from our own and
subjective on the- part of
savings,
and
institutions
for those who make them.
They are
gathering and utilizing such fuhds made within the framework of
grew
steadily in number, until certain
determinants,
among
today no other country in the which are
(1) interest rates; (2)
world can equal us in this regard.
nature of obligations to those who
Obviously American thrift has
saved; (3) obligations to stock¬
made
essential contribution
an
to
the growth of our great industrial
system and to
our uhequalled high
living. And, interest¬
ingly enough, industry's employ¬
ment
of
our
people
and
the
people's high level of living in
turn have encouraged savings.
standard
of
With
the
periods
not
exception
when,
of
we
because
war
have
been
prepared, vast sums of
have been needed imme¬
capital
diately for war plants, the Ameri¬
can people
in the twentieth cen¬
tury have been' able and willing
to
voluntarily practically all
save
the
capital funds essential to eco¬
nomic progress.
I
see
such
has
the
lost
buying
to
the
be
something happens to
to
fact
almost
confidence
lose
the future value
Despite
that
suppose
continue
people
cause
to
reason
not
unless
case
in
no
will
of the
that
dollar.
the
dollar
one-half
since
its
of
it re¬
mains the best monetary unit in
the
world, and confidence has
been
maintained.
have
talked
pect
have
the
power
of
the
expressed
to
me
titude:
"When
in
'30s
the
this
twice
a
as
at¬
of
bought
much
even
con¬
have
it
as
have
a
job all the time; and when I did,
my earnings were meager. Now I
have a good job and earn good
wages. Even if the dollar is worth
only half
twice
as
The
?servation have been
people whose
incomes have remained relatively
♦Statement
Joint
port,
those
who
funds
under
by
Washington,
Mr.
on
D.
Smith
the
C.,
before
Economic
resistance
Feb.
16,
1954.
ferred to
the market at remunerative prices
stimulating, ingredient, or maybe
we
should borrow a term from
all that
is
But this
be produced.
can
explanation be¬
Why?
Is it due to inequalities in income
inadequate
an
it
cause
begs the question:
Is there
defect
some
likely
re¬
people
in
requirements
reserve
have at times some psycho¬
effect upon enterprisers
may
logical
and
ways
bankers, but it does not al¬
follow that changes in re¬
make funds
to
serves
result
able
in
avail¬
more
proportionately
greater use of funds; nor does
it
follow
always that increased re¬
requirements result in pro¬
serve
portionately
is
Yet it
less
funds.
oft
use
that
true
the
of
volume
business and the volume of money
in
tend
use
to fluctuate together.
This would
to
seem
lead
to. the
proposition that changes in busi¬
ness activity cause similar changes
in the volume of money in use
than
rather
money
that
changes
in
the
supply cause business
In other words some¬
first happens to business
changes.
thing
that
either
exerts
downward
a
demand.
an
upward
pressure
alike)
(producers and
consumers
the credit out
tions in the extent to which such of their future
incomes, thus
funds are actually used.
Money lowering effective demand at a
available and money at work are later period?
Or is the trouble
not identical.
due to something that causes dis¬
It is
true that announced equilibrium between savings and
technological
knowledge,
scarcity of capital funds.
have in
we
they
abundance, and when
coordinated
are
toward
objective—like
common
a
or
All these
a
winning
war—their output amazes us all,
was true in the forties. 1
a
as
But the
mere
Catalyst
availability of all
these ingredients essential to bak¬
is conceivable that bank-, ing a great economic pie does not
might contribute, assure us *that the pie will be
to the pressure, but most would
deny, that they
originated the
trend.
For example, business con¬
ditions
to
point
been
there
the
it
loan
are
will
to
be
true
that
care
don't
any
reasons
loan
is
at
for
bank to exert
any
downward pressure upon loan de¬
down
a
or for any bank
worthwhile loan.
Should
to
Standards
Loan
turn
Be
-
Reduced?
*r
to
repaid—just
most
ask
lis
and
hard
effect.
clear-cut
a
that
to
It is
phase
of
the
use
the funds
for
take
example,
system is
agent in
business
cycle.
an
any
On
Savings
and
to
commercial
encounter
own
standards
activity?
"take-out"
or
government
Without
guarantee
the
or
authority, I
not
be
the hope of stimulating
Continued from
page
»
an
banking,
institutional sys¬
that does not depend strictly
voluntary
savings
capital for funds.
It
and
is
its
able
?<She
said.
he
everything,"
has
Yes,
we
progressed
economically.
Front*
each depression it has recovered
to
go
greater heights than
relatively short run,
to
on
before. In the
however, we
have experienced
disturbing and sometimes distress¬
ing fluctuations. It is against these
strengthen
must
we
al¬
our
ready built-in stabilizers and find
additional
ones
to
smooth
the
in
more
curves
conformity with
of
economic
trend
secular
the
progress.
13
Growing Industry
be the acceptance of Pay-As-You-
television.
S'ee
In
view
of
the
spiraling cost of TV broadcasting
rates and programming and the
increasing difficulty
in
finding
sponsors
to
support
important
the
Federal
am
follow
some
by
Re¬
afraid banks
such
a
course
Under such
implication for
an
At
gov¬
*
The
will
neither
ex¬
case
ness
activity.
a
more
may
Such
be)
(as the
to busi¬
must
come
effective, centralized
Despite
most
world
in
the
that
fact
people in
the
matters
economic,
we
it is that
swings the
sure
what
economy
pe¬
his
In
luded
eral
listed
what
shows
and
is
free
also
in
supply
them; it will
substantial source
a
talk,
the
to
Abrams
Mr.
of
need
al¬
more
lib¬
a
plan for financing consumer
installment paper. He
felt that
a
1V2%
of
ample to
be
provision for a reserve
even 2%
would be
or
cover
acceptable
bad debts and may
to the industry in
general. Such a financing ! pro¬
gram, tied-in with a floor plan,
he said, would be a great stimulus
to sales and will, in his opinion,
furnish ample protection to
Abrams
expressed
in
dence
and
new
uses
banks.
concluding his remarks, Mr.
In
future
the
or
confi¬
great
elec¬
of the
which,
he
pre¬
become one- of theleading industries,
four
perhaps our greatest indus¬
within a decade. In light of
developments and the varied
of electronics, we have every
right to expect that it will soon
touch
and
every
phase
of
our
social
economic life. There are
innumerable unexplored
revenue
the
to
stations; at the
networks
same
ties, but there is no doubt that we
called
are
living in what can be
Electronics Age—an age
and
time, it will
can
be
a
the
solution
motion
the
to
problems of
picture and theatrical
who
now
find
only
provide
standing and better living for
that
man
&
printed circuits and transistors, to
Feb.
18.
predicted
all.
Alex W. Munro
Alex W. Munro, partner
vision.
Abrams
that
greater under¬
tough
sledding in competition with tele¬
Mr.
still
possibili¬
the
of
the
select
by paying for
also
in
both
television
are
advanced
still have not found for
He
special programs he may de¬
producers
we
take
can
authority.
the
declared.
system
interests,
following benefits: The home
sire
it be
everybody's
in¬
electronics
whole,
a
defense and commercial/fields.
try,
Pay-As-You-See
serve
sponsored
ex¬
up—can
brought
of TV receivers.
Abrams
viewer
pected that the commercial bank¬
or
as
entire
the
dustry
Broadway plays will be
the
treme—down
tionize
as
will
into homes at nominal cost to the
television. He
revolu¬
as
three
owners
con¬
that they will also
dicted,
the
a'ction.
well
radio,
added
industry,
a
devoting
ly change the style and design of
tronics
depositors and stockholders.
ernment
is
Emerson
siderable attention, will complete¬
system, he said, the
Mr.
Here is
which
best first-run motion pictures and
in light of their responsibilities to
from
Commercial
Bank Loans
upon
business
respective
When attention is directed spe¬
we
on
loan
certainly would
ing system deliberately will apply
that it is an entirely pas¬
either stimuli or brakes
sive agent.
cifically
bank
reduced
would
cause
the other hand, I
not say
Should
serve
difficult to
banking
originating
active
enterprisers
establish
stand,
our
as
for loans unless
they see a chance to
advantageously.
It
time unless
that
German, scholar told me that he
could not understand why Amer¬
ica
was
economically depressed,
Eleclronics: Matured,
the
believe
great
depression of the 'thirties, a young
the
it-
for mand,
con¬
interdependence among us.
In the dark days of the
regard
might deteriorate
that bankers would
more
a
term.
that
An Economic
—
make
quite to have agreed upon a
Some refer to it as effective
seem
add everything, except
able
in proper proportion.
goods
producers
in
their
We should double our efforts to
eagerness to supply a pent-up de¬
mand at one time operate at above find out what this catalyst really
practical
capacity
(around
the is and how it can be reasonably
clock
and
on
holidays) only to stabilized in the interest of eco¬
have to curtail at another time nomic progress. As the President
because they sold products in 1953 points out in his "Economic Re¬
that they might have sold in 1954? port": "A high and sustained rate
Whatever it is—it is not a lack of economic growth is necessary
of raw materials, or a shortage of to the welfare, if not the survival,
plant facilities, or an inadequacy of America and the free world.",
In terms of secular trend the
of transportation, or a dearth of
manopwer,-, or
a
deficiency
in American economy (in an envi¬
managerial ability, or a want of ronment of freedom) has* always
Or is it because dur¬
themselves
ers
would find
lending
had
chemistry and label it a "catalyst."
Whatever it is, economists do not
the catalyst
loan
upon
repay
investment?
or
Once the trend is under¬
must
way, ;jt
from
than
as a
the
in
But we come back to the point programs, and particularly since
promising periods.
color will
make television pro¬
economic.
I think that is particularly true that cannot be eluded
grams-even
more
costly,-Mr.
of., institutions,
like commercial conditions may be such that there
Abrams .believes
that
Pay-Asfewer
"worthwhile
loans"
banks,
whose
obligations are are
You-See. television is the answer
even under the
customary stand-*
mostly of a demand nature.
to making available quality pro¬
But
no
institution
cares
to ards of credit followed ,by banks.
And
that
raises
the
question: gramming to the viewing public.
in
case
the
Re¬
economic
very
institutions
^unds. , Also
application
such
greater
tem
Committee
make
ditions,
much, I get more than
many dollars. So what?"
exceptions to this ob-
held
be
periodic varia¬
for the
unnecessary
as
few
the will
cient effective demand to take off
But
rowing and utilizing
might be re¬
coordinating, perhaps
to do, or it
does not generate
necessary
to
remain -> more 1
liquid, either by retaining a larger
holders; (4) laws and regulations percentage of cash or by main¬
affecting
financial
institutions; taining a stronger primary re¬
serve
position.
To achieve this,
and (5) general economic condi¬
they would adopt a tighter loan
tions.
inches. Mr. Abrams regards pro¬
It has been a common mistake policy, perhaps calling some loans
jection particularly important for
and refusing to renew or make
to think that the mere existence
best performance in color tele¬
This was particu¬
of
funds or the machinery for many others.
vision. The project is still in the
creating them means that those larly true in the days when banks
stage but
may
be
There is engineering
funds will be put to use. * If eco¬ feared "runs" on them.
ready for production in two or
conditions
are
none
to less excuse now since all but an
nomic
three years. He also predicted the
promising — if enterprisers' ex¬ insignificant few banks are under
ultimate development of 3-D tele¬
pectations are not good — appli¬ the protection of the FDIC.
vision as a follow-up to projec¬
cations for available funds will
Furthermore, the Federal Re¬
tion TV, adding that another de¬
decline, and even a very low in¬ serve authorities should make it
velopment of color television will
terest rate will not induce bor¬
under
sort
dollar
buys, I did not
now
value
Some
the
as¬
take
dollar's
circumstances.
I
there
to
seem
philosophically—as
largely inevitable
dition
the
this
(and
money
in
people
about
many)
decline
rather
Most
with
our
been
1939,
sys¬
is needed
any
should
system
changes
taken in the aggregate,
But
an
supply
of savings
upon
which
ample
Dr.
have not kept pace with
or
prog¬
relate
the
fixed
available
sponsible
"built-in"
on
banking
is that the economy
steadily a suffi¬
Something else
baked.
—something less tangible, and dif¬
ficult todefine. It might be called
it now exists, has power
as
make
to
volume of bank loans and
on
Simi¬
tion at present
Thursday, March 4, 1954
.
price system? Do enter¬ demand, others call it the pros¬
prisers miscalculate when capital pect of profits; still others like to
amount
goods and plant capacity are plan¬ describe it as enterprisers' expec¬
of money conceivably needed by
V
ned?
Do
periods of expansion tations.
business for working capital and
This vague something has
stimulate an optimistic psychology
other purposes ordinarily served
which leads to a liberal supply of grown in its essentialness over the
by the commercial banking func¬ credit which in turn leads to an ages.
It has become more and
tion.
It
is sufficiently flexible
abnormally high effective demand more important with increasing
and
adaptable to do so.
But it at the time only to cause contrac¬ economic complexity — with the
is something else again to say that tion
when
millions of
indebted rise of specialization and greater
tem,
savings, and discusses role of commercial bank¬
ing in providing working capital needs of business.
their repayment.
riodically from expansion to con¬
traction.
Most popular explana¬
distribution?
factor in
as
to generate the
as
commercial
Our
use of savings is largely
by institutions to whom the funds are entrusted.
Says decisions of these institutions have important influence
Stresses economic conditions
way
be used
can
loans.
Mr. Smith points out that
the economy.
loans
larly, the system extinguishes or
destroys money when loans ma¬
ture and are not off-set by other
determined
on
a
of
means
reviewing the role of savings in American economic
investment of
that the
think
Vice-President and Economist, First Nat'l Bank, Dallas, Tex.
progress,
decision-makers
mand—when the
By ARTHUR A. SMITH*
After
does so upon de¬
process -and
.
.
Linn,
passed
in Rod¬
away
on
Volume 179
Number 5304
...
The Commercial and Financial Chronicle
(999)
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23
24
The Commercial and Financial Chronicle
(IjOOO)
>
to
British
the
at
consumer
lower controlled
prices.
much
food
The tax¬
prices
were
payer
Food Prices
year
that may arise
and
crisis
is
food
prices
it
of
worth
high
their
replaced by
end
the
taken
food
make
to
to
maintain
To that
output.
Government
en¬
producers
prices
while
and increase their
heavier costs
mean
to Britain in form
were
io be abolished
were
domestic
sufficiently
lower
Says
to
sure
another similar
possible.
They
are
farmers' subsidies in order to
nations
from this trend.
says
or
this year.
Recalls situation in U. S. in the
'30s,
the consumers' subsidies
abolished,
prices, pictures the economic dan¬
food-producing
of
The higher the market
price of food had risen the- more
costly were the subsidies. Under
the new system established
last
Dr. Einzig in calling attention to
world-wide declines in food
to
heavier
millions
of
pounds.
By PAUL EINZIG
gers
paid the ^difference running
has
under¬
that, when the market price
of decontrolled foodstuffs declines
below
guaranteed
the
guaranteed
minimum,
subsidies, food prices
falling.
In
the
Ministry of Food had
recently
£24
some
result of
the
of
subsidies
!
The
guarantee.
de-control
of
food
abandoned.
sidies
are
million.
In
LONDON, Eng.—It is not sur¬
years of al¬
most
uninterrupted
inflationary
rise in
strange irony of fate that
the
ever
unlikely
prices.
as¬
that
It
countries
large
is,
view.
decline in
because the
a
balance
become
however,
purchasing
exporting countries
Britain
prices.
for their
imports.
All this is quite obvious.
Yet it is necessary
food
a
in view of the
people in food
many
countries, who fail to
they have no reason
pleased about the decline in
that
prices.
probable that
be
later by a rise.
seems
substantial decline would
followed
im¬
to restate such
importing
realize
to be
any
sooner
or
Admittedly, food supplies are re¬
covering from the decline they
suffered during the war. In par¬
of food
ticular
suffer
would
of
Moreover it
short¬
pay
self-evident trutns,
food
pay¬
very
power
considerably through
fall in food
the smaller
earn
required to
heavy.
the
For
of
less
a
And the
And
difficult to
attitude
pro¬
porting countries have to export
in order to pay for their imports.
achieving her ambition of be¬
the
increased
substantial
mistic
Their willing¬
production of rice has
beyond
the
most
opti¬
At the same
expectations.
—
prices, the declining trend
in tne price of
iff lipiili
foou-
many
stuffs
cent
of
event
their
on
sighted
cost
a
great
deal
more
in
1954-55,
judging by the prospects of fur¬
in
a
This
£325
to
argued
would
ments
be
sub¬
cost
to
ther declines in food
It is
food
likely
are
to
domestic
to benefit by
food
prices,
burden
the
mean
had
1953-54
expected
They
that
hopes
would
subsidies
the
portion of their food requirements
world
the difference will be made good
prising that, after 15
be
may
stancj
end
for
importing countries would find it
more
amounts
which have to import a
ment
food
increased
home-grown
food
present an almost insoluble
pects of declining food prices.
mar¬
farmers
to
the
on
would
of
much
So
in implementation of the Govern¬
by the Treasury.
prices to food producers.
-
price of eggs, necessitating the
payment
Government
budgetary problem.
a
as
the
in
pay
to
would
Esti¬
.million
decline
im¬
absorb
to
ported manufactures would be af¬
fected to such extent that the food
quantity
the
present
Supplementary
a
of '
mate
ket
to
ability
the
have
are
of eggs,
case
and
ness
subsidies
subsidies, but now
that it is lower prices which mean
hundreds
Thursday, March 4, 1954
.
coming self-sufficient in food, the
rising when this
meant heavier
into
.
.
in
re¬
times,
the
ani
wwm
pros¬
lip
of fur¬
declines,
pects
ther
should
com
m
-
I
'
'
i
/!
| MP
be
inented
with
upon
satisfaction.
Most
feel
people
nostalgic
the
about
"good
Dr. Paui
eve r
was
cheaper.
They
the return
Indeed
older
eh
w.
thing
y
so
muc.i
longing to
are
of prewar
the
old
day s"
Einzig
food
see
prices.
generation
is
dreaming
prices
Yet
if
the
should
the
about
the
pre-1914
the ideal state of affairs.
as
decline
cover
the
space
since
a
rise
1939 —let
free
world
of
food
prices
fraction
mere
covered
alone
would
of
even
1914 —t.e
have
to
face
disaster.
It
is
not
adequately
realized
that the rise in food and
terial
to
prices since
large degree
a
guise.
easily
it is
ma¬
has
been
biess.ng in dis¬
a
disguised
be
tnat
spotted.
it
Cinnot
Nevertheless,
fact tnat the change in the
of trade as a result o- t„e
a
terms
rise
1939
Admittedly, the blessing is
well
so
raw
in
food
prices
and
raw
compared
manufacture
with
prices
material
that
has
of
assisteJ
the backward peoples much more
than
any
number
of
Colombo
Plans
and
tions
other
could
inter. at.o..k.l
possibly
ac¬
I"*em.
assist
The standard of
living of various
African peoples, low as it
is, has
risen
considerably since the
very
war
precisely
because
of
the
higher prices of primary products.
Human
is
memory
those
who
turn
of
longing for
are
low
short.
But
and
should remember that when in the
United
States
the
price
level
toucned its pre-1914 figures in t
'30s, the country
dle
of
of
its
the
economic
Nor is t.iere any
to believe that it would be
otherwise
if
the
history of
nents in the '30s
move
crisis
history.
reason
pnee
to
were
of
decline
in
Yet
this
many
attitude.
an
in
viewed
are
tion
is
impending
world
with
would
new
would
would
process
totally
new to
an
Allied research
the American
scene.
From Allied's
With
new
it, Allied Chemical is
helping advance America's
coming many
chemical frontiers
for
plastics,
In
...
you!
fact, this plant could well be any one of the
more
than 30
major
new or
expanded production
and research facilities Allied is
the
country. Each is
Allied's
new
an
completing
across
new
icals from
.
.
.
new
..
.
contributing to
and
are
synthetic fibers and
fertilizers for food
are
than
neces¬
our
way of life.
plants and laboratories
crops, new
petroleum and natural
others. All
America
more
more
to make the
a
gas,
and
chem¬
many
finer future for
for you!
important addition to
vast
productive capacity. Each will sup¬
and better chemicals vital to progress in
ALLIED
industry and agriculture.
CHEMICAL &
61
DYE
CORPORATION
Broadway, New York 6, N. Y.
wheat
satisfac¬
shortsighted
very
Even from the narrowest
not
be
system
have to
the
slump in
allied
unmixed
As
of
that
mean
a
an
National
benefit to Britain.
the
sities and comforts of
It is the realization of
Today, Allied Chemical provides
quarters in Britain.
a
possible point of view
wheat
it is!
ply
Indications
prices
2,000 essential chemicals used
re¬
peat itself.
marked
might think this sparkling wonderland of
lights is something out of a dream and, in a way,
e
in the mid¬
was
worst
You
re¬
a
could
prices
Advancing America's Chemical Frontiers for you!
a
subsidies,
the
Aniline
Division
result of
it
taxpayer
provide additional
hemical
tens of millions of
pounds in order
to
implement the price guarantee
Sulfuric and
given to the British farmer.
Under
sidies
the
the
'
old
system
of
Government
rent
market
prices and
cur¬
resold
jt
Chemicals Vital to American Progress
cial Acids, Alums, Phosphates.
Sodium
and
F'uorine
Com-
Bituminous
sub¬
bought
wheat and other foodstuffs at
Other Commer¬
Coal "Tar
pounds/'Genetrons," Reagent
and LaboratoryChemicals, In¬
secticides and Fungicides
Chemicals, Resins,
Plastics and Plasticizers, Roof¬
ing and Building Products,
Road
Materials
Dyestuffs and Certified Food
Colors, Industrial Intermedi¬
ates,
Synthetic Detergents,
Pharmaceuticals, Nylon-type
Synthetic Fiber
'Number 5304
Volume 179
...
The Commercial and Financial Chronicle
time it must be borne in mind that
the
from
the
3
page
ress,
making
also
is
prog¬
and it means an increase of
of food which
formerly available for export.
local consumption
was
Taking
long view, the trend of
a
prices must be upward, apart
from any other reasons, because
the world-wide "creeping" infla¬
is
continue.
to
likely
such advantages as a fall
in food prices would bring to con¬
sumers
would be purely tempo¬
being
make
so,
It would hardly be worth
while to put up with the disad¬
vantages of a major crisis for the
sake of being able to get a very
total
"good
the
of
glimpse
old
production can be attained.
a color tube
large-screen picture
be produced in volume at
make
that
gives
and
can
The
a
Color
word
Timetable
color
to
as
possible
a
cessive
vision.
York
outlined
Society nearly
not
need
to
be
great
a
on a
large-scale
commercial basis, color television
ago
year
ex¬
campaign!
When it is here
to the New
a
What
shrinkage.
Presidential
We believe that the color time¬
table that I
without
and
cost
thing it would be if the industry
could do this in time for the 1956
tele¬
changed at
make
knows
how
to
projections
today.
exceed
we
any
might
here
will open a
whole
vista for
new
In
cal
the
year
'
present government fis¬
which
ends
June
30th,
the armed forces will spend about
tronic
equipment.
direction. Whereas the elec¬
appear
that con-
the
of
case
recent
—
..............
than offset by
est
4,382,000
lower
5,774,000
Interest, dividend and other receipts
charges
was more
higher inter¬
and net income increased
taxes
is
told.
missiles will hold firm
increased.
be
even
Therefore,
leading companies which are
doing the research and develop¬
ment work for the government,
and
following this
this
of
member
a
with pro¬
proud to
up
Philco is
and
group,
can
stantial volume of business from
of
1,974,000
be
cannot
the Armed Forces
tion to sales. The effect
$490,183,000
the
points up the fact
expenditures for advanced
If
254,000
...
in
There
the
1952
$545,561,000
operating revenues
that
more
radar and
of
factory
the fore¬
over
future.
add
we
ume
securities
field.
evidence
The
that
or
something of
developments
missile
guided
in
interceptor.
an
You all have read
seeable
on
the
amount increases to about 50%
probably look forward to a sub¬
Summary of ANNUAL REPORT
Profit
into a trainer
to only 2 or
cost of the plane,
of the
3%
be
Sales and
amount
may
duction,
1953
going
gear
plane
much
outlook, it would
President
on
interceptor planes in
budget message points in the
exclusive of
According to the .new budget
including funds carried over
into fiscal 1955, there will be an¬
other $3,500,000,000 for electronic
equipment other than guided mis¬
siles. Based on the present world
increased
the
placed
his
same
the
and
The
which
importance
$3,500,000,000 for all types of elec¬
tronic equipment and related gear,
guided missiles.
25
,tinued emphasis will be placed oh
new and
advanced types of elec¬
tronic
Government Business
real
1956 before
be
It
This assumes that new inventions
business.
Now
does
clays" of cheap food prices.
will
1955.
will
likely
are
realistic
production of color in
mass
good
industry./Anyone
color
the market in 1954, and
but limited
which would
the
of
one
on
reasonable
rary.
brief
1954
—
vol¬
ume years to date. And I am not
unwilling to tell you that our own
company is planning and expect¬
This
ing to increase its share of this
food
tion
6,000,000 receivers
ceivers
color
be
only a
television
re¬
color
of
trickle
will
There
time.
this
munity is much more confident of
that, it would not be surprising to
see
the industry sell more than
seen
of
Television's Inherent Vitality
living.
backward
of
Industrialization
countries
of
standard
has
captivating it is. With a high unit
$ale and an- untapped market,
the
commercial
possibilities of
world-wide effort
a
the
raise
electronic
who
population is increasing, and
that there is
to
Continued
(1001)
a
up
television vol¬
$1,200,000,000 or more at
levels, a radio business
12,000,000 sets with a value of
of
$300,000,000,
a
transmitter and in¬
volume
electronics
dustrial
of
12%
Cross income from
$100,000,000 and military business
Financing
industry, including special manu¬
facturers who are not in televi¬
of
$ 83,168,000
operations
excess
$ 74,686,000
45,172,000
Federal income and
40,305,000
In
April 1953 the Company sold
through a group of underwriters
40,112,000
$200,000,000 of twenty-five-year 3 Vi %
12,409,000
debentures
37,278,000
profits taxes
13,064,000
Other taxes
121,654,000
26,569,000
$4.55
5.68
5.93
3.00
3.00
Total taxes
paid
Dec.
April 1, 1978. A
sion, can look forward to a total
volume of as much as $5,100,000,000 in the year
due until 1955,, was
Appoints Committees
repaid early
.r
PHILADELPHIA, Pa. —James
,
Smith, Barney & Co.,
of the Philadel¬
of
Gies
T.
Vice-President
Construction
was
made
on
the
Company's construction program
during 1953. Expenditures for fixed
capital acquisitions in 1953 totaled
Association,
Securities
phia
Considerable progress
Dec. 31,1952
1954.
Phila. Sees. Ass'n
of banks made in 1952, although
in 1954.
electronics
the
$3,500,000,000,
nounced the appointment
an¬
of vari¬
committees of the Association
ous
to serve for the year
The
membership
1954.
committee
is
$303,225,000
$258,720,000
26,418,000
$ 70,709,000
The
Spencer
D.
Wright,
3rd of
Wright,
Wood & Co. was ap¬
pointed chairman of the arrange¬
ments committee. Reception. Wil¬
50,000,000
and
liam A. Webb,
34,295,000
32,845,000
344,213,000
Property, net
Investments, deferred
30,639,000
200,000,000
depreciation, etc.
289,387,000
$124,051,000
for
548,107,000
$368,696,000
Property, at cost
$193,941,000
677,072,000
308,376,000
Current Assets
reserve
31,1953
due
$50,000,000 three-year loan from a
group
not
stock-
common
Net income
Dividends
y
$5.10
paid
Per share of
,
130,575,000
26,571,000
Wages and salaries
Less:
1952.
$496,539,000
receipts............ .y $551,589,000
Net income
Dividends
over
New
Total
325,525,000
charges and other assets.
Current liabilities
Long-term debt
Reserves
..
Capital stock and surplus
$135,261,078, ah increase compared
$47,617,614. Of the
with 1952 of
amount
expended in 1953, about 85%
for
was
expansion and
Research and
new
projects.
Development
Company's emphasis on research
development activities in new
expanding fields, particularly polymers,
resins, plastics and synthetic fibers, con¬
tinued in 1953 and
a
number of
new
headed
W.
E.
Other
by William A. Lacock of
Clark & Co. as chairman.
members are: Francis M.
Brooke, Jr., Brooke & Co., and
Leighton H. Mclllvaine, Goldman,
Sachs & Co.
DeHaven & Town-
send, Crouter & Bodine; John P.
McCoy, A. J. Sailer & Co. and
Frank Lester Smith, Wurts, Dulles
Co.
&
Golf
Putting: Russell
and
M.
Stockholders at end of year
28,600
Employees
29,100
research facilities
27,850
27,800
were
provided and
research staffs increased.
Upon completion of additional lab¬
oratories
the
Operations
Net income for
a
record
increase
for
some
1953
was
$45,171,647,
high for the Company and an
of 12%
1952;
over
earnings
the $40,305,400
per
share were
1952.
$5.10 in 1953 and $4.55 in
Sales in 1953
were
11% above those
for 1952 and also were
resulted
largely from greater volume, due in
part to
curtailed
steel
sult
the fact that activity in 1952 in
a
Notwithstanding increased charge
charges
for amortization and substantial
starting-up expense, gross income
from
all
Company's divisions will have
modern post-war
research facilities.
operations increased in propor-
Ristine & Co.
Prizes
V.
C.
Government
securities
amounted
to
$149,752,116, of which $50,000,000
used in
January 1954 to retire bank
loans. At the end of the year,
items in
the marketable securities account had
a
book value
of $20,424,293 and a
of
Hornblower
A.
Powell, Kidder, Peabody & Co.;
Lawrence
B.
Illoway,
Aspden,
George
F.
&
Robinson
Co.;
John A.
William A. Webb and Frank Les¬
ter Smith.
Relations:
W.
Speak¬
chairman,
Boston Corp.; Charles
First
K.
Cc*
Parker,
Nagel, Provident Trust Co.;
Arthur Horton, Penington, Colket
F.
WILL BE SENT
Nitrogen Division
John
The
ANNUAL REPORT
Paul
Philadelphia National
Bank, and E, Howard York, 3rd,
Brown, Jr.,
Doremus-Eshleman
FAMILY
Nigro,
Jr., Hallowell, Sulzberger & Co.;
Daniel J. Taylor, Woodcock, Hess
& Co., Inc., and John P. McCoy,
ers:
CHEMICAL
&
A. Bailey, Jr.,
Bailey & Co.; Robert
George
Public
quoted market value of $50,979,834.
and
Boop
Swan
Weeks;
At the end of 1953 investment in U. S.
Exchange:
Stock
and
William T.
Poole of Schmidt, Poole, Roberts
&
Parke; Albert A. R. Wenzel,
John M. Gallagher and Edmund
Orrin
L.
Investments and Securities
was
sales.
for
under construction,
result of the
prolonged
strike. Greater capacity as the re¬
of completion of some of the
as
Company's new facilities also was re¬
sponsible for part of the increase in
the highest on
record. The increase in sales
of the industries, served had been
now
Ergood, Jr., Stroud & Co., Inc.;
Sterling J. Whitcomb, Bioren
Co., and Charles A. Reckner, F. P.
Semet-Solvay Division
Solvay Process Division
&
ON REQUEST
Co.;
blower
Harold
&
Bodman,
F. Carter,
Horn-
Weeks, and Warren H.
Woodcock,
Hess & Co.,
Inc.
Educational:
Theodore
E. Eck-
chairman, Stroud & Co.,
Inc.; Samuel W. Parke, Schmidt,
Poole, Roberts & Parke, and John
F. Macomber, Goldman, Sachs &
Co. Directory: Franklin L. Ford,
feldt,
The Annual
held at 61
Ammonia, Nitro¬
gen Solutions, Urea, Fertilizer
Materials, Methanol, Formal¬
dehyde, Ethylene Oxide and
Glycol
Anhydrous
Coke and By-Products, Coal,
Producing Apparatus,
Wilputte Coke Ovens, Syn¬
thetic Wax and Other Poly¬
Gas
ethylene Products
Alkalies, Chlorine, Calcium
Chloride, Ammonium and Po¬
tassium
Compounds, Alkali
Cleansers.
Chlorinated
drocarbons '
Hy¬
Meeting of Stockholders will be
Broadway, New York City, Mon¬
day, April 26,1954 at 1 p.m. (Daylight Saving
Time). All stockholders are cordially invited
to
attend.
Jr., chairman, E. W. Clark & Co.;
Lewis
P.
Jacoby,
Jr.,
Thayer,
Baker & Co.,
and C. Howie Young,
Wellington Fund, Inc.
26
(1002)
The Commercial and Financial Chronicle
How Mild Will the Depression Be?
small
item, net sales abroad, these
some 25% from
1929
to
1938
By EZRA SOLOMON *
the
the fall
Professor Solomon, in making
a forecast of business conditions
estimates that in 1954 the Gross National Product
to come,
will aggregate $356 billion
in comparison
does not look for much decline in
In
consumer
spending
or
of business
day is "Is
on many
1954
going to
bring
invest¬
to this question de-
answer
pends
bit
in
quite
a
the way
which a
on
business
re-
cession
is
fined.
de-
\
The first
and narrowest
is to
way
that
say
state of
a
recession
ists
ex-
whenever
1954
r0SP
lion
expenditures,
a
go
been
billion
a
in
which
rate of 20 bil-
peak of
mid-1953
a
near-
have
powerful stimulant in the
iast three years.
But the expect-
ed decline is not,
in itself,
For
matter.
0us
have
not
needed
acceleration
all
seri-
a
thing,
one
of
this
we
vast
of
defense spending
full employment. Much
to support
of
in
the
a
out¬
of
1952
the
the first and second varieties.
Overall
business
sales
in
the
become
con¬
lower
than
the
household
second
rate
achieved
$4
12
months,
in
have
aggregate
by
grown
billion—the bulk
of
in¬
some
it
in
the
durable goods sector.
All the evidence
of
source
about
were
quarter of 1952. Yet in the inter¬
vening
ventories
the rest of 1953.
A
quarter of 1953
equal to overall sales in the final
expected expenditures at
higher rate than the correspond¬
ing quarter of 1953 but a trifle
intentions
that
active
today indicates
are
being
attempts
survey data is the McGraw-Hill made to reduce inventories.
The
Publishing Company. The regu¬ fact that these attempts have al¬
annual report for 1954 is not
ready brought about some inven¬
yet available, but the results of a
tory reduction is a good sign.
preliminary
survey
have
been
Just how far inventory liquida¬
published.
This survey indicates tion will
proceed and at what rate
lar
dropped to
is expected
and
final
a
a high of 1.4 mil¬
between
1947-51
formation
by
But
will
shows
and
residential
rate
year
1954
only in A.pril.
A less
comprehensive
survey
covering
only the first quarter of
1954
being put
the argu¬
fundamental
of
case
Commission.
for
to average only 750,000 per annum
into 1955. This low projection is an 8% decline in capital outlays is a
question for which the fore¬
based partly on the fact that the for the manufacturing sector. Last
caster does not have enough truly
age-groups now reaching typical year a similar report predicted an
objective evidence on which to
household - formation age were 8% decline for 1953; actual out¬
base his answer. Some guessing is
born during the very low birth- lays in 1953 rose 4%.
involved, or as we say in the
rate period of the 1930s. It is also
A third clue is available if we
trade, "we have to make some
based partly on the assumption break capita] expenditures down
assumptions."
Alternative ap¬
that the postwar undoubling of by industry groups. • Several in¬
proaches to the problem yield
families living together has about dustry groups, including railroads, about
the same general result. A
run its course and that the un- textiles and
food
reached
peak reduction
of
around
$3 billion
usually high marriage rate of the outlays in 1951 and have since
should bring inventories back into
pastwar years has ceased. With been spending less and less on line with
salps; most of this re¬
household formation running capital expansion. 1951 was also duction
will -take
place in-.the
three-quarter million per annum, a peak year for farm construction first half of
expected to decline in
These
rapidly from
are
construction
the
900,000
iion -m mid-1950 to
iy
the
now having an
inventory re¬
adjustment
which
will
be
the
principal cause of a recession of
available
support
household
are
4V2%.
formation. From
Under Group A, Federal expenditures
Exchange
estimates
equip¬
expenditures is weak.
decline
Government Expenditures
a
rr>i"eSS recessi°n?"
ihe
the
contrast,
Thursday, March 4, 1954
.
are
by
the
Department
of
Commerce and the Securities and
the principal weakness
which is emphasized is the rapid
activity.
minds to-
In
by
con¬
ducted
and
struction,
ment outlay.
Holds there are new factors, such as cost reduc¬
tions, and more liberal tax treatment, that will maintain level
The question
1937
20%.
was
reasons
in
for
ment
inventory liquidation, and
some
was
that
ment
look
1953; but, by excluding what went into inventories in 1953,
the predicted level in 1954 is $359
billion, compared with
Sees
fall
Several
with $367 billion
Between
downturn,
forward
in
$362.6 billion in 1953.
1930.
1948-49
Assistant Professor of Finance, University of Chicago
plant and equipment survey
expenditures fell
.
.
0f }t has spilled over into pure infiatkm.
housing starts
new
the overall
expected to
are
the year.
and
equipment outlays. Since then
The
segments
far considered
so
Secondly, the decline in actual decline from a rate of 1.1 million declining outlays have reflected indicate
a downward
level of busipressure on
expenditures will not be as sharp towards the three-quarter million the decline in farm income. Other
1954
gross
national
ness
product of
activity or
a3
iarge
as
is
commonly figure.
industries, notably iron and steel about $10 billion as
falls below its
compared
thought. The dramatic budget cuts
This is good logic, but it does and non-ferrous metals reached with
.
...
Prof. Ezra Solomon
immediately which are
reported most often are not go far enough.
There are a
p r e c e d i n g the
ones
between
the
original number of positive factors which
level. This really avoids the basic Truman
budget for fiscal 1954 and also need to be taken into account,
issue. Under such a definition we the new
budget for fiscal 1955. A large number of presently ocare
already in a recession and The
difference
between
actual cupied units are dilapidated.
An
have been in one since August or
spending in calendar 1953 and ex- even larger number require conSeptember.
pected spending in calendar 1954 siderable improvement or modernbroader
and
second
A
1954
would be to define
cession year
activity
ness
as
way
re-
a
if the level of busifor the year as a
js
0f
much
smaller
probably two
two
or
ization before they
magnitude—
and
half
a
the
Thirdly, this decline in
also
definition
issue.
or
This
tions
main
more
more.
avoids
the
An inventory readjustment
could,
its
on
own, cause
decline
a
lief
and
consumers; it will
than offset if further tax
measures
be
States.
A
The kind
of
which
recession
is
causing uncertainty and speculation today is a more formidable
-
Ti.
—
£
'
i-L
A
1
rttr
_
there is
sets. latent
de-
mand for housing into action. The
availability
and
slackening
in
mortgage credit and terms is gobudget in- i«g to be another factor in 1954.
no
formation
summary
available which
U Federal action
indi-
cates planned expenditures for the
ahead, it is possible to
these expenditures on
year
ject
Kocici
A-f
nnol
4-
rPn
rl
a
Ikin
credit
terms
to
further
housing
on
materializes
the
and
ahead
pro-
offering
with
Avie+ind
lirifP-WlSP
if
ease
loans
builders
go
better
the
tll0V hSVG
131*0111"*
spending, and reinforced by a vi- Huge needs remain to be filled in tures will not again exceed $11
.cious circle of declining employ- the sphere of education,
highways billion in 1954.
ment, declining income, declining and other state and local services;
Capital outlays by business for
consumption, inventory liquida- construction as well as personnel replacement
and
expansion
of
tion and further declines in
plant, outlays can be expected to rise plant and equipment broke recequipment and construction ex- in 1954 and stay high for many ords in 1953. Excluding residenpenditures. The relevant question years to come.
tial construction and. inventory
today is: are we in for a dose of
Taking all levels of government accumulation, total private dothis sort of thing?
together, and even omitting the
To
approach the
f1?, *c
to this
answer
of
national
gross
product,
whichever way you prefer to look
at
it,
into
four
broad
groups.
Group A includes all sales of
goods and services to government.
half
a
billion dollars.
r/vn«t*..Pfinn
mil
Fnninmpnt
Construction and Equipment
'
'
Spendl"g
J
„
counteracting these fac¬
there
peak outlays
capital
these
expansion.
manufacturers
are
Among
of
inv?
"1^
mercial
to rise
construction
and
net
sales
of
abroad.
sales
to
Group
been
we
under
over-building
the
artificial
return
to
normal
someone
predicted a downturn
tor for the
has
in this sec-
year ahead.
our
our
is
no
us
higher than it
or
the '20s.
Today, capital consumption al¬
alone
to
come
65%
on plant and equip¬
While the size of these al¬
does
guarantee
a
it
in
not
any
though the other
The
groups
short
or
re-
surpass
downturns
decumulation.
1946 was due
The
downturn
entirely to
fall in
a
A
recession,
definition is a
It involves
of
a
floor below which
expenditures
does
indicate
GrounB
1954
our
different
private
matter.
54.3
State and Local
ment
rather than for true
expan¬
in
all
pnd D and has, in the
3 Sen0US fal1 111
us
examine the outlook for
in terms of this
framework.
before
Chicago Executive ProClub, Chicago, in., Feb. 2, 1954.
1953
$1954
57.7
23.4
55.4
25.2
27.0
in the
do
factors
need
sphere of construction
lot
a
for
to
Total Group A
77.7
82.9
82.4
11.1
11.8
11.2
Group B: Sales to Private Investments
Residential
Construction
Other construction
12.3
13.3
12.9
Producers Equipment
Net Sales Abroad
25.4
26.4
25.0
—0.2
—2.0
.
-—1.0
new
Total Group B
48.6
1
49.5
48.1
Durable Goods
Non-durable
Goods
Services
Total
Group C
Group D: Sales to Inventories
Total Sales (Gross National Product)
TEstimated.
^Forecast.
existing
construction
new
into
a
construction.
growing vol¬
of
ume
and
ing
expenditures
research
on
development should
with
soon
more
new
new
ways
pay
off
products and
of making exist¬
ones.
All
in
all, there appears to be
objective support for anv fore¬
no
26.7
30.2
27.5
118.8
121.5
120.0
72.7
78.5
81.0
218.2
230.2
228.5
sector, it is also un¬
likely that total group B expen¬
344'5
3626
359-°
3%
3.7
4.3
—3.0
A, B and C Total:
Final Sales
for
an
can
More liberal tax treatment of de¬
preciation allowances is a second
factor. Thirdly, the
more
——
convert
cast
of
a
broad
367.0
356.0
in
invest¬
ment
outlays. While it is unlikely
that 1954 will break the 1953 rec¬
ord
in
this
ditures will decline
by more than
from the 1953 level.
Under
our
third
definition
sion, there is
348.2
slump
in
not
of
a
reces¬
going to be
one
1954.
However, it does
look
as
bring about
so
a
the darker
First,
heavy burden on many and new
borrowing has slackened. Second,
much
of
into
present
saving involves
installments
contractual
insurance
serves
on
and
pension
contractual
or
re¬
repayment
existing debt. Thirdly, even the
optimistic of those who sell
consumer
On
if
we
the
brighter
side
have
we
the
following forces at work. Pop¬
ulation is increasing 2% millions
Tax reductions and the
per year.
increase
in
payments
sure
government
to
transfer
individuals
will
that the initial fall in
able income is
than
er
in¬
dispos¬
considerably small¬
the fall
in
gross
national
Lastly, postwar
product.
consum¬
expenditures
marked
have
shown
a
tendency to resist any
change in the face of
downward
minor declines
With
in
income.
these
conflicting forces
present it is quite unlikely that
consumer
spending will rise, as
some have
hoped,, and so sustain
the
1953
level
unlikely that
will
shrink
billion fall
of GNP.
It
is also
consumer
along
spending
with the $10
in
other spending and
bring about a downward spiral.
likely pattern for 1954 will
so
tinuing high level of fixed capital
outlays. Cost reducing innovations
demand
expenditure
*u*"tin .addr.<:ss of Prof- Solomon
Jy
University
the
fram
third
re¬
cannot
in
a
rough
how large a part of postwar
has been for replace¬
way
Group C: Sales to Consumers
concurrent fall
the
groups B, C
under
-f
-
Federal
of
Federal expenditures.
Let
.
Group A: Sales to Government
of
1924, }.927 and 1949 were due almost entirely to a switch from inventory accumulation to inventory
three
..
1952
main at previous levels
them.
_
(Billions of Dollars)
from a decline in
any
one
of
these four groups of expenditures
even
way
but which! will nonetheless
pro¬
vide important
support for a con¬
GROSS NATIONAL PRODUCT
.
de-
recession, under the first or
second definiton, could result
of
outlays
ment.
lowances
and
Let's look
side of the picture.
consumer debt is already a
at
er
spending
„.Whattls lh? evidence regarding
in inventories.
A
was
measured,
"
*
a
plant and equipment, is
when compared with the
gross
penditures
multiple fall in GNP?
durable goods feel that
there is going to be some decline
in this sector.
with
markets for
to
lowances
spending hold in
declining income and
employment? Or will consumers
attempt to reduce their own ex¬
face of
most
Since the war, the real
propor¬
tion of our national
output de¬
in
Will consumer
the
a
relationships provides
only a relative clue, which can be
misleading.
no
the
inventory factor alone.
a
overenlarged capacity. There
objective answer to this. A
high
over
of
no
1930s, but is
Of this $10 billion
is attributable to
billion
Will
look at past
voted
$7
either
capital
stimulus
find
glut of capital and
placement
year
expected
year.
partly inflationary boom?
fall,
c
Group D is the net increase
crease
C
consumers.
elec¬
Many
people
are
concerned
with long-run
relationships. Have
teHed nearly $40 billion. Lv®ry
year Slr}ce 1949 a l\ew high has
been achieved in this sector ana
every
is
significantly this
Expenditures listed under Group this sector of private capital for- sion.
Group B is private expenditures ® contain the true clues to the mation in 1954. A most valuable
Finally, there are three
on
construction
and
equipment business
cycle. Excluding the clue thus far has been .the.annual whose effects cannot be
consists
several
are
major industry groups which have
not yet reached their
for
almost
stimulating effect of Federal tax
question, I have divided expendi- relief, the overall decline in Group
tures on gross national product, or A
expenditures amounts to only
sales
But
of decrease
and possibly the
important public
utility group.
In addition com¬
of this magnitude in gross national, ditures will rise in 1954.
Although
product, even if all other expenditures achieve 1953 levels.
1953.
tors
trical machinery and
automobiles,
factor which
large,
chemicals, joined this list in
but
one
re-
passed.
and local expen-
are
Finally, state
United
and
unknown, number of the postwar
units are going to be too small to
cope with our present birthrate
of four million per annum. Internal migration will continue to be
expen-
whole, measured by expenditures diture is about offset by tax reon
gross
national product, falls lief in 1954, which puts more
short of the average 1953 level by money in the hands of
corporafive billion dollars
be classed
of minimum standard for
as even
billion dollars.
can
1953.
their peak outlays in 1952.
Two
other important groups, petroleum
The
be
rise
some
in
expenditures
on
services.
This will partly but not
wholly offset a decline in expen¬
ditures on goods, so that overall
consumer
some
spending
will
fall
by
$2 billion.
Our forecast then
is for
a
total
gross national product of $356 bil¬
lion. This compares with the
1953
total of $367 billion.
However, if
we
and
exclude
predicted
billion
lion
the
inventory sector
only final sales, the
compare
level for
compared
1954
is $359.0
with $362.6
bil¬
having, and
inventory
are
for 1953.
What
we
are
going to have is
an
re¬
cession. It is not
likely to develop
into
anything more serious.
Should
the
more
formidable
weaknesses appear, the Federal
Government has ample power and
has indicated ample
willingness to
undertake corrective action. Fur¬
ther reductions in tax rates
and
a
step-up of Federal and municipal
spending can and will provide
enough
support
should
private
forces show any sign of
dragging
GNP below the 355 level.
Volume 179 .-.Number 5304
The Commercial and Financial Chronicle
...
(1003)
METROPOLITAN'S ANNUAL REPORT TO POLICYHOLDERS FOR 1953
Over
Paid
Billion Dollars
a
Policyholders and Beneficiaries—the Largest Sum in the History of Insurance
to
More benefits to
people
more
Metropolitan in 1953 than have
have been at work to
paid by
were
been paid by
ever
Metropolitan Highlights of 1953
materially reduce the infla¬
tionary forces, which for so many years have been
Life insurance company in a single year. Pay¬
policyholders and beneficiaries amounted
any
During 1953, Metropolitan's gain in Life insur¬
in force was substantially larger than was ever
driving the cost of living to ever greater heights.
war
production, a temporary
ments to
to
catching
ance
The curtailment of
$1,029,000,000.
When it is realized that
receive
ties from
front,
a
are
passing through
a
a
We
facili¬
not
readjustment period,
omy
ASSETS AND
Provincial and Municipal
.
Public
.
LIABILITIES-DECEMBER 31, 1953
65,021,712.72
On urban
on
Real Estate
.
properties
'
.
.
.
.
172,718,060.11
.
2,336,397,134.83
178,559,689.38
Real Estate (after decrease by adjustment
443,446,660.78
Housing projects and other real estate acquired
for investment
..........
Properties for Company
use
.
1,555,100.68
TOTAL ASSETS
.
—
Assets
.
51,633,831.58
in 1954)
Security Valuation Reserve (prescribed by the National Associa¬
25,845,145.00
Commissioners)
TOTAL
.
.
......
$11,596,540,987.84
OBLIGATIONS
Unassigned Surplus
$110,683,000.00
604,709,379.29
715,392,379.29
TOTAL SURPLUS FUNDS
TOTAL
OBLIGATIONS AND
amounting to $586,852,295.40 are deposited with various public officials under
$12,311,933,367.13
SURPLUS FUNDS
the requirements of law or regulatory authority.
METROPOLITAN
LIFE INSURANCE CO.
1 Madison Avenue, New York
10, N. Y.
Gentlemen:
Metropolitan Life
(A
MUTUAL
A
Insurance Company
jggfl
COMPANY)
Home Ofhce: 1 Madison Avenue, New York
\
Please send me,
nual Report to
without charge,
a copy
Policyholders for 1953.
NAME.
w
5,050,000.00
28,213,270.94
Special Surplus Funds
276,698,999.17
I
Obligations
488,853,000.73
$12,311,933,367.13
TO MEET OBLIGATIONS
NOTE
60,640,032.54
156,401,445.73
outstanding)
203,618,054.00
.
.
93,674,723.78
Policy Obligations
All Other
Cash and Bank Deposits
Other Assets (chiefly premiums and interest
Policyholders (payable in 1954)
Contingency Reserve for Mortgage Loans
47,979,349.96
Policy Loans (made to policyholders on the security of their policies)
$10,438,536,909.00
Policy Claims Currently Outstanding (claims in process of settle¬
ment, and estimated claims that have not yet been reported)
.
.
tion of Insurance
.....
(all of which is under contract of sale)
•
$396,012,210.14
Acquired in satisfaction of mortgage indebted¬
ness
•
689,329,021.00
Set aside for Dividends to
Taxes Accrued (payable
of $2,100,000 in the aggre¬
gate)
.
Other
$2,157,837,445.45
On farms
.
future dates
.
guaranteed.)
......
.
.
by beneficiaries and policyholders, to be paid to them as directed at
666,935,849.03
Stocks (All but $16,476,038.61 are preferred or
policy benefits.)
Policy Proceeds and Dividends Left with Company at Interest
1,642,459,573.13
Utility
OTHERS
Statutory Policy Reserves (This amount, required by law, together
with future premiums and interest, is necessary to assure payment of
future
1,890,206,554.53
.
Railroad
Mortgage Loans
For a more complete story of Metropolitan's
operations during 1953, as embodied in the Annual
Report to Policyholders, mail the coupon below.
to much
OBLIGATIONS TO POLICYHOLDERS, BENEFICIARIES, AND
$4,172,794,376.37
....
.
President
with the Insurance Department of the State of New York.)
$8,437,418,065.78
.
j
wish to
particular tribute to the 48,000 men and women
in the Metropolitan organization who have made
these results possible.
pay
than ever could be achieved in the midst of war.
ASSETS WHICH ASSURE FULFILLMENT OF OBLIGATIONS
Industrial and Commercial
business.
citing the 1953 accomplishments, we
initiative,
and faith in God. Our two countries will go
number of influences
.
In
greater heights of prosperity in a peacetime econ¬
U. S. and Canadian Government
Expenses increased moderately, largely
because of the increased volume of
the greatest productive
lost their fundamental traits of thrift,
(In accordance with the Annual Statement filed
.
by Metropolitan investments, after deduct¬
ing investment expenses, increased to 3.31% (com¬
pared with 3.21% for 1952), and stood at 3.09%
after the Federal Income Tax. Mortality continued
number of months, but funda¬
have, far and away,
policyholders during theyear reached
high of $214,829,000. The interest rate
capacity of any country in the world. More than
this, the people of this country and Canada have
METROPOLITAN
Bonds
all-time
earned
mately 380 billion dollars, exclusive of the holdings
of corporate securities by individuals.
satisfying of human wants..
On the domestic
Dividends to
an
mentally this country is strong. Personal savings in
are now estimated at approxi¬
production of materiel for human destruc¬
tion to the
of 1953.
support.
the United States
age, was
convert some of our industrial
Company, which help guarantee
obligations, increased by $719,000,000, and reached $12,312,000,000 at the close
year
and have been for
the cessation of hos¬
fully realize that
world at peace is far from won, and it
upon us to continue to remain militar¬
we can
The assets of the
at a low rate.
ily strong. With Korea no longer an active military
theatre,
fullest
than $56 billion. The number of peo¬
the fulfillment of its
ahead, business will be more competi¬
no cause for concern. Competition
provides the same goods at lower prices, or better
goods and services at the same price. The United
States has grown to its present outstanding position
on the basis of
competition in a free market.
tilities in Korea. Nevertheless, we
goal of a
our
In the
retrospect, 1953 was a year of transition. Up¬
is incumbent
particularly
tive, but this is
permost in the minds of all, but particularly those
our
are
more
ple covered under all forms of Metropolitan policies
reached a record high of over 37 million.
on the thrifty and those dependent on fixed
incomes. All efforts to control this danger should
National Economic Conditions
military
totalled
heavily
We
of
budget, and
of public
played their part.,
We in the Life insurance business
pride in reaching new heights in service to the peo¬
ples of our two countries.
sons
balanced
conscious of the effects of inflation, which bear so
All in all, 1953 was an
outstanding year in your
Company's operations. In most respects, it was the
best in
Metropolitan's 86-year history. In the light
of the
high level of economic activity in the United
States and Canada, and the
ability of our Field
organization, this is not surprising. We can take
with
a
previously recorded by Metropolitan or any other
Life insurance company in any one year. Metro¬
politan's Life insurance in force, at the end of 1953,
some areas, a
orthodox management
debt and fiscal affairs—all have
as a
erages.
In
with civilian demand in
return to more
a
whole, one can readily vis¬
ualize the tremendous stabilizing force that the peo¬
ple of the United States and Canada have built for
themselves through Life insurance and related cov¬
industry
up
determined effort to achieve
Metropolitan's benefit
payments are only a portion of those of the Life
insurance
I
STREET.
10, N. Y.
CITY
.STATE.
of
your
An¬
27
I
28
(1004)
The Commercial and Financial Chronicle
We
years.
Stockholder Prospects
In Food Industry
J
1930's.
Estimates food industry expends $800 million
on
for
a
representative
of Grocery Manufacturers
Association
member
companies
survey
group
and
found,
somewhat
our
do
surprise,
that
these
had
almost
twice
as
many
stockholders
as
are
most
ports
of
100
of the stockholder
as
of
in
which
deserves
rapidly in the
years
to
bering,
I
position
its
look
you
industry's earnings
dollars,
of
dollar of
profits
per
or
per
While
sales
have
been
cut
years
tremendous
such
in
a
dollar
of
a
have wit¬
sales
profits
in
in¬
that
have
total
roughly
analysts
of food
between
for
Stockholders' Equity
on
From the investor's
standpoint,
one of the
important profit meas¬
is
ures
earnings per dollar of
equity.
The food
manufacturing
industry
has
a
good record in this respect and
num¬
industry
in
which
one
is
pounds
little
consumption
a
diets
our
1500
gain
has
not
in
the
the
direction
combined
effects
that
they bought in the
period, this annual food
today's
take
only
18%
nine
point
difference—or
prices—would
income.
of
The
eating habits.
Revolution
the
Food
items
today's
around
choose
to
from,
homemaker
in 1939,
as
finds
some
what below the defense
industries,
and
below the average for all
lying forces which have produced
this still continuing revolution in
tries,
but
make
the
presentations
to investors
attitude
roles
toward
as
you
manufacturing.
influence their
and
ter.
citizens.
make
it
ticularly true
at
time
a
1953,
the
at
GMA
work
the
to
farmer
the
8l/2
con¬
of
idends
for
the
dividends for
to
shareholders
As
in
crease
on
Now
some
you
into
let
of
they
pay
dividends
will
a
value dividends
me
the
will
to
with
factors
in
you
which
probably want to
account
analyzing
take
the
grocery
manufacturing industry.
Probably the first factor is the
overall
,
profit trend.
Third
the
address
consumer's
alysts,
J£54.
by
Mr.
Willis
Annual
New
stand¬
at
the
Eastern
Conference
of
Society of Security An¬
New York City, Jan. 28,
York
Inc.,
average net loss
cent for manufac-
whole.
mild
In
1933
they
against 2*/2
recession
a
of
year
1939
about
was
A
year
the
equal
food
to
all
industry. Yet its performance in
the past
15 years has been
food
competing
one
of
vigor and expansion/Con¬
expenditures for food have
from
to
$64
about
$16
billion
billion
in
1952
in
and
estimated $66 to $67 billion in
1953.
This
has
rise
far
which
food
have
consumption
anything
been
forecast
the basis of the rise in
popula¬
tion or the rise in income in these
on
favor
in
the
citrus
gan
that
50
product
research
and
educa¬
industry promotion.
Awareness of starch
versus
pro¬
tein in relation to
overweight and
slenderness.
more
high quality
food.
Urban
on
living with its emphasis
outside activities for the home-
maker, convenience and speed in
Self-service shopping.
Convenience
foods
are
shortage,
but
5%
(It
products,
more
knowledge—we can be¬
gin to understand why Americans
have, in 1953 compared to 1939,
more
vegetables,
baby foods,
canned
more
cream,
40%
Consumption
newer
more
ice
more con¬
many
convenience
prewar.
little
or
known
these
and,
peas
frozen peas.
to
keep
figures
in
per
are
About
—
the
tomato
more
paste
and
and
Whole
15%
Wheat Flour
less, but 33%
more
Some
several
and
20%
and
fewer,
fresh
and
sweet
about
15
70%
potatoes,
but
canned sweet potatoes.
more
Prunes—30%
nearly 1,200%
juice.
fewer
but
more canned prune
,
.
fewer,
but
.
,
about
.
200%
more,
Among other fresh items, we
are
eating double our 1939 con¬
.
of
avocados
lettuce.
is
the
up
were
non-existent
be¬
fore the war, among them
baking
indicated
industries
invest 8%
survey
that
manufacturing
generally planned to
less
in
1954, food manufacturers
planned to maintain
capital
spending
at
last
year's levels. In fact, many pack¬
aged food companies planned to
as
a
group
their
spend
more
mand
for frozen foods
in '54 to meet the de¬
convenience
items.
and
As
other
further
a
barometer, the report noted that
container
industry planned
higher spending in 1954 to keep
pace with the needs of food proc¬
the
Excess Profits
Tax
There is conisderable specula¬
|
tion
about
the
effect
mination of the
of
excess
the
ter¬
profits tax
various industries—as regards
on
prices,
etc.
competition,
For
dustry
the
advertising,
food processing in¬
whole, the removal of
the
as a
would
tax
to
appear
have
very little effect—certainly much
less than for industry
generally.
is, of
because of the
course,
comparative stability of the indus¬
try's profits during- the defense
period. The situation reflects it¬
self in
the
following figures: For
three-quarters of 1953,
as a group paid
Federal income and excess prof¬
its taxes amounting to 56J/2% of
their pretax earnings.
In con¬
trast
corporations
engaged
in
food manufacturing paid 53y2% of
their pretax
earnings for these
taxes—only
more than the
straight corporation income levy.
the
first
all manufacturers
erally,
there
of
are
course
a
number of individual firms in the
processed food field whose
earn¬
ings have risen sharply since the
base
period.
These
are
likely to be firms in the most rap¬
idly expanding segments of the
1946-9
industry.
The removal of the tax
in these instances will free funds
for further
frozen strawberries.
more
on new plant
While the latest
years,
equipment.
McGraw-Hill
While this is the situation gen¬
semolina flour and products.
White
Potatoes — Between
and
40%
Canned pickles
are
expansion, attract ad¬
capital
and
generally
make for an even more rapid and
competitive
development
than
ditional
would otherwise have occurred.
70% while canned fruit cock¬
up
tail
and
tion
are
fruit for
uries
diet
sities.
be
And
luxuries
moving
it
the
will
morrow.
The
is
are
Today's
tomorrow's
at
rate
be
lux¬
neces¬
we
are
early
an
trend
toward
to¬
con¬
certainly continuing.
Research
The
food
Supplies
consump¬
There appear to be no startling
necessities.
will
Prices and
salad
100%.
up
Yesterday's
today's
changes from ,1953 in prospect for
either
food
1954,
at
Our
third
the
Keystone
the
In
first
gave
crop
the
us
total
,
in
half.
on
rec¬
where
supplies
immediate
market
exist—such
certain
prices
or
the
areas
of
excess
and
industry has become
in
harvest
largest
ord.
in
supplies
least
1953
wheat,
as
corn
manufactured
products—the
items
are
dairy
under
scientific
operation.
On the
Manage¬ Federal price support.
guided by research every other hand, there are no not¬
step of the way. Much of today's able shortages of any major, do¬
impressive
array
of
new
food mestically produced foods.
Sup¬
a
ment
is
products
in
was
stage five, 10
same
dustry
or
the
15
"test
tube"
years ago.
In
the food
industry
being created in
throughout the in¬
way,
tomorrow
laboratories
is
today.
Food
manufacturers
and
employ
grocery
than
more
plies
of
frozen
the
fruits
first
and
coffee
is
the
constantly seeking new
and better products, better proc¬
essing methods, better packaging,
better utilization of agricultural
are
Food
manufacturers
are
currently spending in excess of
$38 million annually for this type
of
research
alone.
In
the
years
ahead, such research will be in¬
creasingly the keystone of indus¬
vegetables
all
are
for
approxi¬
mately equal to 1953's large totals.
Only in a few import fields such
as
Retail food
They
and
products,
vegetables,
and
half
clouded with
scientists
milk
meat,
fruits
canned
technicians.
6,400
crops.
of
foods
for
This
fewer,
nearly
100%
more
tomato juice and almost
White
of
71%
sharply from
canned
more
Tomatoes
—About
more
juices, 218%
juices, 80%
and 6%
of
canned
sauce.
the
more
cream
35%
but
canned
900%
cheese, 40%
more
canned
vegetables,
35%
more canned
fruit, 37% more beef,
13% more coffee, 7% more fluid
milk and
5,000%, since
important
that
300%
738%
fruit
canned soup,
more
increased
capita, not the result of popula¬
tion growth.)
some
frozen fruit and fruit
has
or
more
is
mind
sky¬
nutrition
frozen
citrus
Peas—About 75%
about 500%
Combining higher in¬
new
processing industry
spending in the neigh¬
borhood of $800 million a
year,
been
needs
with the other forces—maid
come
food
has
more
Frozen
1946,
venience
home operations.
rocketing.
grape¬
production, which be¬
times,
sumption
tion. !
Desire to eat
15%
Apples—About
Fresh
600%
de¬
Capital Expenditures
'
The
1,500%
juice,
but
133%
more
apples and apple sauce.
are
in food and grocery
manufacturers' laboratories.
Effective
but
orange
Fresh Strawberries—About 50%.
new
convenience foods many times in
the next year.
essors.
fewer,
but
velopment
Nutrition
salad
as
year.
Fresh
part-time maids.
and
fewer,
about
>
Dried
Research
but
of other
more
segments.
about
these:
and
in
About
—
canned, and 40%
concentrate
fewer
Higher average income.
Scarcity and higher cost of full
20%
straight and blended
fruit juice
products
grocery
her
densed and evaporated milk.
in
outstripped
could
for
supermarket. The under¬
the grocery basket are
many,
some of the fundamental ones
unusual
sumer
and
consumed per person 1,250% more
Growth Industry
Food processing has tradition¬
ally not been considered a growth
an
point, the grocery manufacturing
♦An
the
manufacturing.
1939
the
to
manufacturing generally.
average
risen
Profit Trend
From
back
an
a
.a
so
normal
consumers.
explore
main
aver¬
1949, the food manufacturing
figure was slightly better than the
general figure. In the relatively
always, the
depend in
continuing in¬
its service,
quality and
part
as
Even in
groups are in
industry's ability to
large
look
food
as
both
inter-related.
turing
cents" for
Good
prospect for the future, and
are
let's
the
below
earned about six cents
value div¬
consumer.
Now
somewhat
of one-half
earnings for
and
was
Admittedly,
equity against
stockholder, in addition to its
history of service
industries
bottom-of the depression. In 1932
food manufacturers
averaged
.about four cents on stockholders'
.
record
cents:
age.
that 'only
especially
welcome
an
oppor¬
tunity to say to you that the food
processing industry also has an
the
manufacturing
rate
dollar goes for net
profits of the
food manufacturer. We therefore
excellent
exam¬
dollar of stockholders' equity.
Food manufacturers earned about
small fraction of the retail,
food
a
for
per
continuously
explaining
and
sumer
are
gen¬
generally earned, about 10V2 cents
when general business
appears to have leveled off.
at
manufacturing
Consider these facts
present,
We
as
ple: For the first three quarters of
par¬
like
same
erally.
worthy
of investors' interest.
This is
or
In "normal" years it is about
the
There
are
many facts
in the
record of food and
grocery manu¬
facturing which
recession
depression years, it is much bet¬
industry in their
consumers
In
20%
canned
Basket
thousand
a
modern
indus¬
About
more
Fresh
in
of
—
more,
canned meat.
more
same,
Instead
turers' net profit rate on stock¬
holders' equity is of course some¬
many
Certainly research will be
producing a number of new, easyto-prepare and partially prepared
Fresh Oranges and Grapefruit—
50%—
is the degree to which the people
of America have upgraded their
Meat
the same, but 33%
tioned
earlier,
American
con¬
sumers
today are spending 27%
of
their
disposable income
on
food. If they were buying only the
types and amounts of food per
revealed
edible fats and oils such
oils..
more
This gain is strikingly illustrated
by the following fact: As I men¬
is
1939
Lard
and
convenience services provided for
the 1953 diet, the real gain in per
capita food and food service ex¬
penditure since 1939 is approxi¬
mately 50%.
since
Margarine—Up 190%.
and
Shortening
of
processing, packaging
person
higher income-better
Fluid Milk—7% more, but more
than 100% more non-fat dry milk
and more than 100% more
cottage
cheese.
the
of
You not
exercise an important in¬
fluence on the flow of
investment
our
150%
quantity,
quality,
tastiness and the addi¬
variety,
the
Fresh
been
5,000
among
sibilities for large scale develop¬
ment.
But
following data. Compared to
prewar, Americans are eating per
person, by categories:
improved
tional
hours.
the
highly processed, packaged
convenience
foods.
Taking into
than
heavy
gories
more
account
5.5
saving revolution
has produced within product cate¬
compared
than
more
defense spending—food manufac¬
capital
the
in."
required
What
per
pur¬
chasing their securities.
tion of food by exposure to atomic
radiation all seem distinct pos¬
con¬
hours.
primarily in terms of pounds. It is
mainly reflected in the shift of
In boom years—or
years of
only
"built
kitchen
ready-to-serve foods needed only
1.6 hours—a saving of
nearly four
approxi¬
"
stable
more
day,
pounds in prewar 1935-39. But the
manufacturing industry generally.
Investors
counsel
1600
a
on
was
basket—at
Return
grow
—
mately
with
prew&r
an
ahead, and
stockholders.
to
15
doubled.
understand, more than
profession—are in a
and
total
crease
your
key
sales in the last
on
stockholder's
security
6,500 in
the
has definitely not meant
dollars
probably will.
You
of
im¬
in
half, the past 15
important group of
consumers, is
fairly recent development.
It
one
decline
nessed
ex¬
a
is
long-run
dollar
source of
opinion, and
dollars
further
even
investment.
pansion and improvement has
long
been realized. But the
recognition
of stockholders as an
important
segment of public
aver¬
sales also running
1952, total
decline in the
and
industry
net
an
cents per dollar
were
years
The role
thp
the funds needed for
re¬
With
above
profit rate
than
more
are women.
based
available—the
far
sales.
in
cents
on
—
of about
age
The
than
shares
2 2/10
proved.
them
stock,
Willis
1953
so
profit
geo¬
less
In
to
up
with
products
nutrition-labor
Consumption
declined
profit rate increased to
graphically,
own
1939
1952.
sales
of
went
late 1930's.
average of 4 6/10 cents in
an
well
widely
scattered
from
of
employees.
Stockholders
half of them
dollars
capita income—against 23% in the
sample of 89 representa¬
tive grocery manufacturing com¬
panies, the net profit—after taxes
prewar
companies
S.
in
food expenditures represent
27%- of
disposable
per
come,
the GMA
dollar
activities—and
venience
about
industry is one of low and de¬
clining profit margins. Based on
—per
of
food
sterilization, electronic
cooking, and even the preserva¬
for
up
new
mentally changed in recent years.
Today, with higher national in¬
plant
new
other
or
home-
time
more
this includes just about all wives
—have
eagerly snapped
capita basis in 1953
made
leisure
na¬
as
and
progress.
And expenditures
quite likely to increase sub¬
stantially. New "flash" methods
are
when income rose, of course, but,
They found that home prepared
precentage-wise the food increase foods,
including
preparation,
was
less than the income
rise. watching,
serving and cleaning
This relationship has been funda¬ up, for a family of four for one
and equipment yearly, and concludes there will be little
change
in food supplies or in
prices during current year.
Paul
experience that
wives
seeking
Thursday, March 4, 1954
.
try
concentrated
Working
makers
the
was
frozen
penditures
Stresses importance
industry is "a scientific operation."
we
it
1940
and
increased, the frac¬
tion of income spent for food de¬
creased. Up to that time, food ex¬
food basket that favors food
processing.
of research, since the food
a
Before
historical
declining profit margins, it is a "growth industry," since food
consumers are
spending more, and there is a revolution in the
ago
coffee
fruit juices.
tional income
Spokesman for food manufacturing concerns, in discussing
prospects of the industry from the investor's standpoint, points
out though grocery
manufacturing industry is one of low and
years
mixes, dehydrated foods, soluble
more
experience back in the 1920's and
President, Grocery Manufacturers Association of America, Inc.
About two
lot
a
had any statis¬
we
tical right to expect, based on our
By PAUL S. WILLIS*
j
selling
are
groceries than
.
.
(the
latest
supply
index)
were
1V2 % below
a
below
August,
the
Wholesale
products
after
period
stabilized
year's
year ago
prices
and
of
and
levels.
1952
both
declining
many
are
about
and 3V2%
processed
gradually
of
situation
uncertainty.
prices in December
peak.
farm
foods,
for
months,
at
With
about
raw
a
have
last
farm
•
Volume 179
product
prices
assuming
eral
Number 5304
-
fairly
business
activity,
and
the
more likely to be
influenced by labor costs than any
>"•'
•/••
t<
•■*
-
*r
<y
-f-
Commodity Prices
in
Prices
purchased
materials
production and orders has
weakness
changes,
though
more
numerous,
have been moderate,
to
February.
in
the
any one month since the
show
are
of
materials,
with fabricated quirements. The adjustment ap¬
items running a close second. Cash pears to be about completed for
reflecting
overstocks
and
stiff discounts,
missing since the im¬ many others. General comment is
Unworked material
tion of employees has accounted competition.
that this part of industrial inven¬
position
of
price
controls,
are
show
the
for more than 60% of the entire inventories
sharpest coming back.
Freight absorption tory is in a much healthier con¬
drop
increase in spread since 1939. For
the same amount of factory labor
since
reported
June.
last
down
Employment
to
Many
rock
raw
are
and
bottom.
down—not quite
January. Produc¬
$2.74 today. This is 17 cents more tivity is on the rise. Buying policy
is
predominantly
60
days
and
than a year ago and does not take
under.
The
majority opinion is
account
of
such
improved em¬
that
Easter,
Spring
and
early
ployee benefits as better
time
which
facturers
the
cost
$1.00
in
food
1939,
manu¬
as
he
as
is
sumer.
in
Summer
cover¬
active,
age, etc.
products
and
March
show
may
In
into
the
buyers
are
ex¬
than
healthy
competitive
Inventories
ventories
buy
are
of
Agents
the
lower
report
materials
what
is
rolls
at
down
are
again,
slightly lower
January and there
in
a
pace
is
a
slight increase in those reporting
new hirings. Outdoor work is
ex¬
pected to pick up in March. Pro¬
in¬
ductivity is improving
labor
most
/
•
r
(1005)
reported
are
available
manufacturing
rest
of
the in¬
as
Buying Policy
Sixty days and under is still the
majority purchasing policy. Living
off
inventory, short orders, avail¬
ability,
price
and
weakness
markets.
General
assurance
delivery sched¬
ules, plus the improvement of
supplier services, are making un¬
the long-range or mul¬
necessary
tiple
commitments
so
Opens Offices
Mrs.
Elizabeth
gaging
in
Frenkel
securities
a
say
that
from offices at 755 West End Ave¬
for lost overtime pay. All
types of
nue,
New York City.
timists about the
in the
we
'
Generally,
there
is
no
force
believe
we
downturn
a
income of
the
op¬
vigor of the U. S.
economy.
of
the
in
if
national
than about
more
'
.
that
5%,
rise
continuing
in population at the rate of about
three
million
people
strength of the
toward
better
a year, the
definite trend
very
convenience
nutrition,
foods
and
effec¬
the
and
tiveness of the research and
motion
efforts
of
the
pro¬
industry
Will be able to maintain sales and
earnings
the
close
event
nomic
of
to
levels.
1953
serious
more
a
downturn, sales and
In
eco¬
earn¬
ings of food manufacturers would
of
course
event
decline.
we
decline
are
would
practically
But in such
confident
be
than
less
an
the
that
in
other industry.
any
New Orders
Bright
Spot in Business Trend
Business Survey Committee of the
National Association of Purchas¬
ing Agents finds increases in
orders
new
during February counter¬
balanced decreases for first time
since
March, 1953. Says most of
produc¬
the adjustment between
tion and orders has been made.
BENEATH THE BROAD ATLANTIC
A composite opinion of purchas¬
ing agents who comprise the Na¬
tional Association
of Purchasing
Agents Business Survey Commit-
your
whose
tee,
Robert
Swanton,
voice will travel the world's
!ii®@
first transoceanic telephone cable
C.
D i-
iii
rector of Pur¬
chases,
W i
chester
n-
Re¬
H Chairman is
peating
Arms
Company,
New
Haven,
Conn., reveals
that
during
February prod
u
t
c
prices,
i
o
were
at
about the same rates as reported in
January. The bright spot is in new
orders. While not of boom propor¬
tions,
the
creases
number
(30%)
reporting
in¬
balances
exactly
the number of decreases, a condi¬
tion that has not existed in the
reports since last March. Also, the
number
showing increases
as
the tele¬
miles by vacuum
today. Work has begun
ate
on a
mile voice cable that will
2000-
cross
is the
route to
cable
many years.
duction
cutbacks
have
tween falling
tion, to two
and
closed
The
nect
the United States and Canada
new
cable
will
$35,000,000 and will be
of the Bell
ect
with the British Isles.
cost
a
gap
be¬
orders and produc¬
points
in
February.
a new
Bell Radio Relay
Nova Scotia, and then will go
to
through
Newfoundland and Great Britain.
about
joint proj¬
Many
,
and
System, the British
years
Through it
Europe
as
talk
a
to
you
will speak to
easily and clearly
as you
business associate
across
town.
Amplification for
will be
accomplished about
your
voice
every
40
Office, and the Canadian Over¬
cable into
seas
Telecommunications'
and women,
tion.
On its
present
capacity
radiotelephone circuits
between New York and London.
<%
BELL
TELEPHONE
being.
Telephone
men
telephone investors, and
the American
completion, in 1956, it
will have three times the
of
Corpora¬
of telephone research
development have brought the
Post
people
can
well he
proud of this giant stride forward
in the
ever
increased
the
transatlantic tele-
con¬
highest since January, 1953. Pro¬
orders
new
Conversations and radio
"the
mountains beneath the sea" to
continuously for
to oper¬
system.
will travel
programs
designed
of the
route
phone cable
tube repeaters built
into the cable and
em-
off
old
phone itself is moving toward reality
ployment
Robert C. Swanton
as
n,
inven¬
tories and
General
A dream almost
en¬
they
the
inveterate
is
business
again this month.
industry
are
prevalent
during controls and scarcities.
This I would not attempt to fore¬
industry
that
vendors will meet
Obviously,
this depends partly on how severe
a
decline, if any, occurs in na¬
tional income
and
employment.
food
are
influencing this short view of the
1954?
cast, except to
in
areas.
sales and earnings outlook for the
grocery
for the
29-
centive workers strive to make
up
factors
above
consideration,
with,
Purchasing
a
of industrial business.
Conclusion
all
Employment
Pay
though
to
conditions.
leveling-off to upward movement
Taking
con¬
capacities
excess
periencing
becoming
are
dition than it has been for months.
price changes help
With time to negotiate and
currently
negotiate
pays
pen¬
sions, expanded insurance
much
delivered
to lower the net cost to the
■
v"?
inventory
correction started last June.
Many
in balance with current re¬
Metals
slide-off
!'>'
i *
51% report reduction of stocks,
the largest number so
reporting in
industrial
continued
in
predominate
Price
Wages are the
largest single element in the food
price spread. Increased compensa¬
of
r/
.
yf
widest
been made.
factor.
one
The
points,
tween
price situation is
other
•'
gap in 1953 was 15
September—indicating
food that much of the adjustment be¬
stable
drastic drop in gen¬
no
■'•--
The Commercial and Financial Chronicle
...
SYSTEM
continuing job of providing
better
telephone service.
30
The Commercial and Financial Chronicle
(1006)
Thursday, March 4, 1954
...
\ 1
Outlook for TV Antenna Sales
otherwise would
those able to receive
of at least
"The total volume of television
antenna
in
sales
units and in dollars, will be larger
than ever before," Harold Harris,
Newer and
Vice-President in
of
nas,
charge
Sales
in
Engineering,
C h
a
n
n
Master Cor¬
poration,
the
a
telecasting,"
for
on
"There
Jan.
in
whether
N.
2 9
Y.
at
first
of
gional
be
of
in
station
tions
cities
will,
which
the
mean
that
are
there
new
UHF
and
Harris
Mr.
said,
will
color
sta¬
to
channels,"
The
somewhat closer
The
transmitting
point to a
fringe-area
indications
for
demand
.
was
delivered as
four-day conference, of
speech
part of
a
and
move
antennas."
an¬
receive
receive color as
white, though
to
a
Channel Master distributors~from
the southeast section of the
Mr."
coun¬
try1. Local and national television
j
conditions and problems were re¬
Harris divided the antenna
viewed by7 the
Channel Master
replacement market into 3 major1 personnel conducting the unusual
categories: • : •./
confercence. ; In
addition, there
(1) Mechanical Obsolescense, r were; tours of ' Channel Master's
Antennas which have been up for ' new one and a half million
dollar,
three to four years frequently be¬
150,000 square foot plant; unique
corroded to the
come
reduced
signal and
necessitate replacement.
ception
The television
tually
see
a
Continued,
industry will
contains
replacement market
from first
world's
in
camera
eye
of
Channel
v-
'
Corp. is
facsimile
of
machines.
Other examples of electronics in
wires
into
the
are
medical
radio-active
; The
tissues.
cancerous
The radio¬
The
of television in the
use
such
san-
medical
ogy,
psychologist" with an electronic
Actually, television is hav-i
brain, memory and "show win¬
ing such a broad application in
dow". is now undergoing tests at.
medicine that special treatment
the
G.
E.
general
engineering
of this phase would be justified.
laboratory at Schenectady, N. Y.,
Television Use in Medical
prior to delivery to the personnel
research procedures of the Adju¬
Instruction
tant General's office in Washing¬
i One of the earliest uses of tele¬
field.
made
was
in
back
March,
by the University of Penn¬
sylvania Hospital in Philadelphia.
A
telecast
casion
size
same
ness
by
In
standard
a
The
abdomen
exami¬
nation, the best fluoroscopic
lution
L0
heretofore has
lines
several
relative to tissue.
factor of 200.
a
per
inch,
minutes
been
reso¬
about
obtained
of
dark
after
adapta¬
tion
by your physician.
The
brightness amplification of the
-
tion.
betatron
man's
therapy is providing a
stimulus to the rapidly
powerful
expanding
publicized de¬
vices of the
cal
electronics
business
is
ten such units
ideas
and
are
now
research
with
report
volt
machines
in
nois
deep-seated
ton,
tumors
in
the
also
surrounding tissue. Its beam
be
can
used
in
treatment
of
lesions near the surface with a
minimum of penetration.
These
betatron
machines, ac¬
-
cording
provide
to
medical
.
authorities,
distinct advantage over
the low-energy X-ray beams from
a
ordinary
medical
Tex.;
X-ray
equip¬
be
in
or
construction
various' stages
has
the
of
high-energy
cancer
advantage
of
therapy
low
skin
dose and great penetration.
Highenergy
also
X-rays, it has been found,
have
diagnostic applications,
especially where it is desired that
of
the
■
method
use
at
nently-sealed electron-beam beta¬
and
Thus,
said to
-
tron
betatron X-ray in
are
*
Memorial
scatter,
destructive
of
planning
following
medical
laboratories:
University
of California Medical Center, Los
Angeles; The Lincoln Laboratory,
Bedford
Air
Base,
Mass., /and
Royal Victoria Hospital, Montreal.
Delivery oL the- first perma¬
The latter do not penetrate
great depths in tissue, are not
well-defined
because of
particularly
Ministry
Similar installations
ment.
of bone.
can
tube
October
mors
to
New
Center
made
of
available
treating
in critical
York
City's
installation
a
cancerous
areas
such
as
last
new
tu¬
the
of
instructor, and it is in
is
that
delicate
in
In surgery,
intimate dem¬
techniques.
for example, the tele¬
camera
promises to become
indispensable instrument of in¬
an
The
stalled
the
of
first
Kansas
color
in¬
television
far back
November, 1951. Its
installation brought about a com¬
as
plete
revision
gical
curriculum.
television
above the
ceivers
large
3d
40
sur¬
action,
is
m o
installed
the
n't'
u
of
each
e
d
re/
in.. several
The. telecast
in
sound
tioning
entire
In
students
operation
way
the
operating table and
are
rooms.
to
in
camera
to
permits
view
room.
A
the
two-
system permits ques¬
the* surgeon
by the
•students. Similar
use
of television
or
Another unusual
vice
planning this
electronic de¬
by
new
instruc¬
method.
Another
tronics
contribution
the
is
microscope
be
to
television
innovation.
these
cancer
on
a
clinics
constitute- another
One
held
was
multi-city
of
the
late
in
first
1953
of
ultimately
could
a
form
:
any¬
opinion pub¬
the aging process, hut
up
possible
not
lengthen life considerably.
Cruttenden & Go.
Adds New Partner;
Opens N. Y. Office
Cruttenden &
York
Stock
Co., members New
Exchange,
has
an¬
nounced that Donald R. Bonniwell
the
has joined their firm
so
partner
million, side by side,
a
row
only an inch
as
a
special
in
charge of their
Municipal De¬
long.
yet
is
scientists
to.slow
elec¬
polio virus—a tiny round ball
small that
some
the
expressed
even
or
of
become
fact,
may
enabled
made
dollar
only
patterns
use
billion
toac-;
be
cathodeof
of
area
eventually
powerful electronic
whose
photographs
partment with
science
of
make
to
its
electronics
full
has
impact
headquarters
on
in
hospital
controls,, division
Chicago,
209
hospitals. B. C. Benson, of Chica¬
South
Salle
for Minneapolis-Honey¬
La
Mr.
St.
Bonniwell has
well Regulator CoM some time ago
been
projected this picture of the hos¬
nancial
ad¬
pital
viser
the
of
have
as
They
tomorrow:
electronic
devices
will
that
act
these-organs are operated
bedside color TV cameras and
intercommunication-
permit
with"
patients
leaving
findings.
around
during
opened
Its
market
its
$700.. Since
on
ment,
its
closed-circuit telecast.
been.
the
biggest
a y
price
is
develop¬
customer
military,
has
although
a
March
1.
the New York office.
Bonniwell
G.
Wilmer
Milton Van
S. Edward DawsonSmith, registered representatives,
Riper
and
also
•
X-r
R.
Slaight, Jr., a specialist in mu¬
nicipal securities for over 30 years,
joins Cruttenden as Manager of
to
surgery
preliminary
Donaid
Rico,
for the past ten years.- A New
York office at 37 Wall Street was
pinpoints the location of metal in
the human body. This, instrument
used
Juan,
Puerto
midget walkie-talkie sets for pag¬
ing doctors in the corridors.
be
Rico,
San
their stations; and individual
supplement
for
Puerto
systems, that
without
to
Bank
to observe and talk
nurses
fi¬
Development
while
on;
the
Government
substitutes for heart and lungs
can
Simultaneous
was demonstrated at the con¬
ference of electronic instrumenta¬
tion and nucleonics in medicine
ray
a
this
licly that with electronics it
In this description, Mr. Benson
being made by the University
Chicago and by the University neglected to include the electronic
of Pensylvania. Other universities device
already
developed
that
tion
ment, etc.
dot
diagrams on
viewing screen.
of;
certain to expand ap¬
seems
have
is
ing
equip¬
will
of
stallation
test
in
appear
be
beginning
present
one's guess., In
by
scatter
any
reported to be either consider¬
and
problems
or
on
can
science
preciably. How sizable this market
De¬
months
just
impact
vices
hand com¬
putation methods. Solutions to the
go,,
as
require
solution
of
is
the
market for medical electronic' de¬
Defense
would
years
manager,
regular instruction in
medical school in the world
are
costs
that
system for
The machines sell for up¬
wards of $100,000 apiece, plus in¬
brain.
of
by
prepared
There
that
tivity. The
problems in statistical psychology
The
University
design
psycholo¬
gists, the two-and-a-half ton elec¬
tronic
computer - runs • through
struction.
1
basic
partment
the
dramatically il¬
perhaps no other way
students get an
vision
of
use
most
onstration
Center,
Chicago;
Hospital, Hous¬
Memorial Center for
Canada, and French
Health, Paris.
communication
schools
lustrated. In
the
Anderson
to
are
camera
-
Public
human body with minimum dam¬
age to
medical
MedicaL
D.
the
comes
following
hospitals: University of Illi¬
seven
M.
-
for
me¬
and techniques. In such in¬
stances, the television camera be¬
several
almost
beam has been effective in irradir
ating
being made where visual dem¬
operation in industrial produc¬
in
sources
exclusively for Cancer and Allied Diseases, New
nuclear research.
More recentlv, York City; Mallinckrodt Institute
the betatron; has found practical of Radiology, St. Louis, Mo.; Co¬
applications in hospitals and med¬ lumbia Presbyterian Medical Cen¬
ical
institutes
for
therapy and ter, New York City; Saskatche¬
Cancer
diagnosis.
Its high-energy X-ray wan
Clinic,
Saskatoon,
used
were
television
of
use
lay¬
surgery.
the
tion
the
the
of
dread
broadest
of the
purposes
diminish
to
was
oc¬
medicine.
doubt
make
Army psychologists "see" that the
right man gets the right job. De¬
veloped by G. E. engineers from
opera¬
dium
Trade
business.
h'gh-powered betatron for cancer
therapy. These machines initially
the
of
of
electronics
It is designed to help
ton, D. C.
a
provides the best
that there
fast-exnanding medi¬
that
onstration
-
.
on
major surgical
natural
The
is
electronics
medical
made
was
a
One
in medical
Electronic fluoroscope doubles this, others planned.
Allis - Chalmers
yielding 40 lines per inch without alone was reported to have under
installation
24
million electron
long dark adaptation.
One of the most
of
telecast
acceptance of the
,
•;/ / ; sible benefits of electronics in the
;
psychol¬ field
General Electric's new7 j "robot >- little
many
1952,
great,
.
,
In the related field of.
is only , one of
applicationsV in the
vision
the contrast of bone not be
for X-ray equip¬
physicians is esti¬
microscope.
,
Medical Electronics—
X-ray image in the
but increased in bright¬
among
mated to have accounted for more
takes the place of
the
guinometer
page
the
use.
market
injected by hollow needles ment
.
presents
sales
importance are X-ray,
diathermy and diagnostic devices.
Other important products include
of electronic
surgical
instruments
and radio-isotope instruments for
designer
a
the medical field in order
sold to
.
-
A Billion Dollar Market
exhi¬
-
manufacturer
of television antennas.
these
on
-
is
Master
a
of
were
the active wire is' inserted^ into the. than
a half-billion dollars in sales.
The in-j hollow core of a special needleDiathermy machines in use have
formation seen- by the television and then
injected directly into the an estimated value of about $60
eye is fed to both the computer tumor under treatment. The ther¬
million. Electronic diagnostic de¬
and a monitor viewing screen.
apy does much the same job as vices are reported to be
gaining
The New York "Times," on Jan.
the injection of radium
and/is ih sales.
This| group of instru-J
17, last, in reporting on the san- much less expensive. The device ments
include the electro-cardio¬
guinometer, said in part: "The In¬ is produced by Tracerlab, Inez It
graph, electroencephalographs and
stitute wanted a simple, rapid and
has been used in Boston, Mass./. colorimeters. V
;
accurate mass method of making General
Hospital.
.*
!
/
; At the American Medical Asso¬
blood counts to detect the first
Though its work has; received/ ciation meeting, trade publications
signs of radiation sickness in the
comparatively little publicity; the? reported that physicians displayed
target area of an atomic bomb. A medical
department of the- Uni-* great interest in the use of
mag¬
blood count is an important in-;
versity of Chicago is reported to = netic Tape for* recording heart beat
dicator in diseases in ..which ane¬
have been doing a great deal to r signals over
long periods at low;
mia may be caused by over-ex¬
help those unfortunates iwho sufr. cost/ then re-recording 'conven¬
posure to powerful radiations. But- fer from
hayfever and asthma.: tionally only:the medically signif¬
the sanguinometer also has its;*
One of the - important tools re- ' icant
portions as * electro-cardio¬
peacetime uses. In hospitals and searchers are
using is radio-active grams. '
/' /
/
research centers the device does
ragweed,; which constitutes an¬
There seems to be no foresee¬
its counting almost instantaneous¬
other example of electronics per¬ able limit at this time to
the pos¬
ly and with a minimum of error."? meating medicine.
" I
.
largest
Facsimile
parti¬
given field. The televi¬
sion
industry in that it
complete aluminum ex¬
mill:
trusion
even-- the
a
medicine
try
computer that counts
cles
in the antenna
point where
inferior re¬
obtain the services of
roentgenologist
and
anywhere in the coun¬
within a few minutes. Time
these
a
number
A
New
bition at this conference. Follow¬
specialist
and
City.
devices
the
in
transmitting X-ray pic¬ mately $1 billion.
telegnosis, a distant
The big three of the products
can
system with, an optical microscope
Our
at
of the Amer¬
Association
York
expert
an
strument
will
possibility that fringe
a
greater
number of stations. In
many areas?
this would have to include both
VHF
that
i TV ^stations
color.
replacement;
able
is
may
the
to
-
black
as
areas
have
now
single channel antennas by
tennas
indicate
expected
well
openings.
television, the opening of
of
television.
little difference in an¬
requirements.
Practically
all types of present antennas can
Harris
Con¬
television
Even
color
tenna
Harold
Channel Master Distributors, Mr.
Harris continued: "The reason for
this is the continuing number of
new
present
to
as
photographic
developed
was
emphasis
summer
Medical
With
hospital
ton, N. J. at the behest of the
Sloan-Kettering Institute. The in¬
combines
a
television
Harris.
make very
a
Re¬
ferences
Mr.
many
on
studies
the
of
series
work
i 11 e,
e n v
said
questions
antennas
are
cells,
blood
counting
for
tures.
by
RCA's research center at Prince¬
(3) Color Television. "1954 will
major advancements in color
delivery
for
bacteria of grains in
see
speech
preoared
E11
method
ment
accurate mass
rapid and
It
ican
Closely allied to these television ing that meeting, the authorita¬
applications is the new technique tive trade
book,
"Electronics,"
"telegnosis." This is the term estimated the value of elec¬
applied to diagnosis at a distance tronic equipment in use by the
through use of facsimile equip¬ medical
profession at approxi¬
meter. This is an instrument for a
emulsion.
meeting last
of
America announced
the sanguino-
of
simple,
pre¬
dicts.
In
poration
Antenna
Master
cancer
electronic
the development of
types being developed
Channel
early
detection and other phases
Telegnosis
Early this year, the Radio Cor¬
particularly the combination
considerable
of
- of the disease.
rays.
anten¬
Development Laboratory, will re¬
sult in superior reception, espe¬
cially in problem areas.
1
e
efficient
more
UHF-VHF
&
Obsolescence.
methods
and also disease
structures
in such structures which
generally transparent to X-
are
Technical
(2)
soft
to visualize normal
waves
discussed
cast
processes
nually.
in
both
1954,
cal
tissue
an¬
York. Cancer experts on the tele¬
apparatus
ultrasonic mechani-'
that employs
5,000,000 antennas-
.
conference,
same
too, was introduced an
number of stations.
a
this
At
death.
leading producer of TV antennas, says opening of new TV
mean replacement of single channel antennas by
stations will
program
certain
mean
cities
participated, r The number' of - hospitals have
in/
was seen in New York; stalled,' or;; have
on
order, the
Boston; Philadelphia;* Pittsburgh;} units./' " "V
Detroit;
Dearborn,
Mich.;
and "r This
growing
importance
of
Toledo, Ohio. It originated in New electronics in medicine was given
development consisted, of manmade isotopes to detect as well as
locate hidden brain tumors that
Vice-President of Channel Master Corporation,
Harold Harris,
Seven
This
in New York City last year.
join Cruttenden in this office.
direct wires connect
Cruttenden's Chicago office with
their. New York branch office and
their
New
York correspondent,
Separate
.
Reynolds & Co.
;
.
Volume 179
Number 5304
.
.
.
(1007)
The Commercial and Financial Chronicle
31
INVESTMENT TRADERS ASSOCIATION
OF PHILADELPHIA
At Benjamin
ANNUAL MID-WINTER
Franklin Hotel
FEBRUARY 26, 1954
DINNER
President
First
Vice-President
Second
Treasurer
V ice-President
Secretary
Chas. L. Wallingfor
H. M. Byllesby and
Company,
Joseph R. Dorsey
Merrill
Lynch,
Pierce,
Fenner
A
Beane
Samuel M.
Edgar A. Christian
Stroud
A Company
Incorporated
BOARD
Charles J. Brennan
Blyth
A. H.
M.
A
Co., Inc.
Fenstermacher
M.
Freeman A
Co., Inc.
John W.
Murphy
Hornblower A Weeks
Stroud
A Company,
Incorporated
GOVERNORS
OF
G. Robert Brooks
John P.
Jack Christian
Schmidt, Poole,
Janney A Co.
A
American
Co.
Hendricks
Flecker A Co.
Carr O'Brien
Company
-
A
I
Eastwood, Inc.
Corporation
Thomas F. O'Rourke
Reynolds & Co.
William J. McCullen
Robert McCook
Thayer, Baker A Co.
Butcher A Sherrerd
Securities
Corporation
John M. Hudson
James W. Heward
Hardy
First Boston
Harry H. Fahrig, Jr.
William Doerr
Dempsey
Kidder, Peabody
Roberts A Parke
Rubin
James G. Mundy
Kennedy
Yarnall, Biddle A Co.
J. Leslie
Rodgers
Blair, Rollins A Co.
Incorporated
Wallace H. Runyan
Hemphill, Noyes
&
Co.
Joseph E. Smith
Newburger
A
Co.
Roy C.Thomas
F. P. Ristine
A Co.
John F. Weller
Goldman, Scwhs A
Co.
32
The Commercial and Financial Chronicle
(1008)
.
.
.
Thursday, March 4,
UNDERWRITERS, DEALERS and BROKERS
PENNSYLVANIA MUNICIPAL and
AUTHORITY BONDS
PUBLIC UTILITY—RAILROAD
—
INDUSTRIAL
BONDS and STOCKS
Issues Free of the Pennsylvania
Personal Property Tax
YARNALL, RIDDLE & CO.
Members of
*
J. Myron Honigman, Pennsylvania Securities Commissioner;
New York Stock Exchange
%
ties
Philadelphia-Baltimore Stock Exchange
American Stock
1528 WALNUT
York
Clarence H. Adams, Commissioner, Securi¬
Exchange Commission; Charles L. Wallingford, H. M. Byllesby and Company, Incorporated;
Lund, Securities & Exchange Commission; Albert Marks, Newburger & Co., Atlantic City, N. J.
(Assoc.)
ST., PHILADELPHIA 2, PA.
Bell System
New
Exchange
&
Anton
Teletype—PH 22
Telephone
WOrth 4-4818
v./
B°f
deferred an
"imi
O—"
^
Dollar
Foreign
Peabody&Co*
4Apr
aoeis founds i86'b s iockbxchan^
York Stock Exchange,
Exchange
AT
SO
New Yor* o
Stock
Midwest Stocn
Exchange
pbila#
9, Pa.
Carl
Necker, Schaffer, Necher & Co.; A1 Knapp, Wurts, Dulles <ft Co.; Daniels
Brasted, Halsey, Stuart <£ Co. Inc.; John Richter, Butcher <£ Sherrerd
C.
«
BOSTON
—
Greetings and Best Wishes from Philadelphia
\
TRADING DEPARTMENT PERSONNEL
R. Victor Mosley,
vice president
R. Victor Mosley
>
Frank J. Laird
Equipment Trust Certificates
Frank J. Laird
Allan
B.
Railroad Bonds, Guaranteed
Leased Lines Stocks
and
Foard, Jr.
Edgar A. Christian
Public Utility
James G. Mundy
Industrial
Bonds 8e Stocks
Russell M. Ergood, Jr.
Michael J. Rudolph
Municipal Bonds
Gordon W. Pfau
L. Wister Randolph
Robert J. Campbell
Institutional Department
DeCourcy W. Orrick
Robert N. Greene
Sales Order Department
Edward F. Hirsch
Statistical Department
Felix E. Maguire
Field Representative
STROUD & COMPANY
1
Incorporated
PHILADELPHIA
new
york
pittsburgh
allentown
lancaster
atlantic
city
1954
Volume
179
Number 5304
.
.
.
(1009)
The Commercial and Financial Chronicle
Utilities
PUBLIC
I
MARKETS
PRIMARY
r
■
•
*
.
INDUSTRIALS
WITH COMPLETE
RAILROADS
TRADING FACILITIES
AND
BANK
BONDS
Jim
Stroud & Company, Incorporated; A1 Fenstermacher, M. M. Freeman &
Smith, Newburger & Co.; Wallace Runyan, Hemphill, Noyes & Co.
Mundy,
•
STOCKS
PREFERRED
INSURANCE
STOCKS
COMMON
•
Co., Inc.;
Joseph
Blyth & Co., Inc.
NEW YORK
BOSTON
LOUISVILLE
EUREKA"
Hal
Murphy, Commercial & Financial Chronicle, New York City; Willie
New York City; Carroll Williams, Laird, Bissell & Meeds, New
Hopper, Soliday & Co.; Cliff Remington, Woodcock, Hess
Andy Pimley, Woodcock, Hess & Co., Inc.
Meeds,
SAN FRANCISCO
•
SPRINGFIELD
•
DETROIT
■
•
■
CHICAGO
PHILADELPHIA
•
SACRAMENTO
LOS ANGELES
MINNEAPOLIS
•
•
•
PITTSBURGH
•
FRESNO
SEATTLE
•
OAKLANP
•
PASADENA
•
PORTLAND
INDIANAPOLIS
•
SPOKANE
•
SAN JOSE
•
•
CLEVELAND
•
SAN DIEGO
•
Schmidt, Laird, Bissell &
York City; Joe McNamee,
& Co., Inc.;
Securities of the United States Government,
and its Instrumentalities
Donald
Campbell, Janney & Co.; Harry B.
Alfred McBride, Wright, Wood & Co.; H. R. Derrickson, Walston & Co.
McAIpine, Goldman, Sachs & Co.,
Snyder, Yarnall, Biddle & Co.;
New York City; Grant
State, Municipal and Revenue
Securities
i
Bonds, Preferred and Common Stocks of Industrial,
Public Utility
This Is How It
Worfys
and Railroad Corporations
Bank and Insurance
Company Stocks
I
Without favor
or
prejudice and in the light of
ing conditions, we continue to
constantly shift¬
Bankers'
search for relatively under-valued
Acceptances
securities.
Securities of the International Bank for
selections form the basis of almost
The resulting
trading markets, carried in the
our
markets
are
firm and
An increasing
to stop,
our
100 primary
Philadelphia Office, in which
Reconstruction and
Development
interest often substantial.
number of dealers
are
finding it advantageous
Canadian Bonds
•
Foreign Dollar Bonds
look—and do business.
I
Underwriter
•
Distributor
Dealer
I
H. M. BYLLESBY and
1500
COMPANY, INC.
New York
Chestnut Street
Philadelphia
Philadelphia 2
Chicago
-
New York
-
Minneapolis
Boston
Pittsburgh
Cleveland
Chicago
San Francisco
33
34
(1010)
The Commercial and Financial Chronicle
Underwriters
and
.
.
.
Thursday, March 4, 1954
Distributors
MUNICIPAL BONDS
Aspden, Robinson & Co.
1421
New
York
CHESTNUT STREET, PHILADELPHIA 2
Phone
COrtlandt
Teletype
7-6814
PH
Philadelphia
313
RIttenhouse
We continue to have
buying interest for
active
an
our own
Phone
6-8189
account in
Ellwood
public utility, industrial, real Estate, railroad
OVER
—
THE
-
-
COUNTER
Arthur
Williams, Pennsylvania Company for Banking & Trusts;
Hanff, Jr., Newburger & Co.; Larry Colfer, Rufus Waples & Co.
Arthur L. 'Wright, Arthur L. Wright & Co., Inc.; Bill
Caldwell, First Boston > Corporation, New York City
—
stocks and bonds
Dealer Inquiries Invited
lilLLE
Members
Y «X?
Philadelphia-Baltimore
CO.
Stock
Exchange
Packard Building, Philadelphia 2,
Phone:
RIttenhouse
Direct
State
°
Bank
6-2324
Telephone
to New
Municipal
0
Insurance
Pa.
Teletype
*
York
PH
366
City—CAnal 6-4045
Corporate Securities
Stocks
•
Mutual
Funds
Pennsylvania Authority & Revenue Bonds
Public
New
Housing Authority Bonds
We maintain active
trading markets in unlisted securities
I
Arthur L. Wright & Co., Inc.
225 SOUTH
15TH
STREET, PHILADELPHIA 2
Bell
•
Klngsley 5-1060
System Teletype PH 255
Bill
Henshaw, First Securities Corporation; James T. Gies, Smith,
Barney & Co.; Richard Duffin, First Securities Corporation;
Eugene Arnold, Harriman Ripley & Co. Incorporated
Direct Private Wire to
New
Call
York
Hanseatic
Eddie
Opper, J. B. Maguire & Co., Inc., Boston;
Topol, Greene and Company, New York City
Bob
Corporation, New York BArclay 7-5660
JANNEY for—
I
Bank and Insurance Stocks
active
Pennsylvania Tax Free
trading
markets
Industrials
Rails
Utilities
Common and Preferred Shares
"ssssrr
Be"
TpH8oW™
lANNEY & Co.
1529 Walnut Street. Philadelphia 2
RIttenhouse 6-7700
Jens
Since
1907—Underwriters, Distributors, Dealers, Brokers
Schanke, W. C. Pitfield & Co., Inc.; Bernard Eberwein, Alex.
Sons, Baltimore; William T. Meyers, Gordon Graves & Co.,
York; Bill Boggs, John R. Boland & Co., Inc., New York
PRIMARY TRADING MARKETS 4- RETAIL DISTRIBUTION
ltOi:\M\4,
*_
Members
•
•
*'
•
Philadelphia-Baltimore Stock Exchange
1606 WALNUT STREET
Teletype PH 30
I
Ed
Brown &
New
&
Welch, Sincere and Company, Chicago;
Scattergood, Boenning & Co.
Harold
=
More Opportunities For Us
CO.
American Stock Exchange
^
p
(Associate)
PHILADELPHIA 3, PA.
Telephone PEnnypacker 5-8200
New York
Telephone COrtlandt 7-1202
(1011)
Number 5304
Volume 179
.
.
.
35
The Commercial and Financial Chronicle
UNDERWRITERS
DISTRIBUTORS
•
Newbvrger
BROKERS
•
& Company
Members:
New York Stock
Exchange
American Stock Exchange
•
Philadelphia-Baltimore Stock Exchange
1342 Walnut Street,
New York City
Philadelphia 7, Pa.
*
Klngsley 5-4500
Vineland
Atlantic City
Lebanon
Effective Distribution
In the Nation's Third Largest
Ben
Mitchell, Mitchell Securities, Inc., Baltimore; Gus Schlosser, Union Securities Corporation,
Ely Batkin, Batkin & Co., New York; Sid Jacobs, Sidney Jacobs Co., New York;
John Stein, Wm V. Frankel & Co., Incorporated, New York
Trading Area
New
York City;
IN
SPECIALIZING
OF
CITY
PHILADELPHIA
ISSUES
AUTHORITY
PENNSYLVANIA SCHOOL
AND
ALL REVENUE BONDS
♦
SCHAFFER, NECKER & CO.
Packard Building, Philadelphia 2,
LOcust 7-3646
Pa.
Teletype PH 864
,
SAMUEL K. PHILLIPS Cr CO.
1904
Forrest
Duble,
& Co.; Tom CRourke, Carr O'Brien
Weeks; Edward Gilleran, National Association
Parrish
Hornblower &
—
—
1954
Philadelphia-Baltimore Stock Exchange
Members
Company; Jack Murphy,
of Securities Dealers
Our Fiftieth Year
LISTED AND UNLISTED SECURITIES
1500
Chestnut Street, Philadelphia 2,
Bell System Teletype
NEW
New York
PI1 375
Philadelphia
LOcust
Pa.
COrtlandt 7-6814
4-2600
ISSUE
149,974 SHARES
AMALGAMATED GROWTH INDUSTRIES, INC
STOCK
COMMON
AMALGAMATED GROWTH INDUSTRIES, INC.,
at 11
Goldman, Sachs & Co., New York City;
Michels, Allen & Company, New York City;
Bernie Tobias, Gerstley, Sunstein & Co.;
Jim
McAtee, Butcher & Sherrerd
M. Gowan,
Vincent
Harry
A.
Frank
F. J. Morrisey & Co.;
Waters & Co., Inc.; John
Martin & Co., Inc.
Morrissey,
Dawkins,
Charles Campbell,
McGarvey, Jr.,
West 42nd Street,
amalgamate
a
with
an
office
New York, N. Y., was formed to
number of related developments, devices,
products and processes, which, in
the opinion of its Man¬
contribute to the economic growth, as well
as the military preparedness, of the United States. Among
these products and processes are the Recurrent Surge Arc
Welder and the High Temperature Electric Arc Torch.
agement, should
PRICE
$2.00 PER SHARE
Offering Circular may be
obtained from the undersigned
Hiscox, Van Meter & Co., Inc.
Investment Securities
MEMBER:
NATIONAL ASSOCIATION OF
LEWIS TOWER
BUILDING
•
SECURITIES DEALERS, INC.
PHILADELPHIA 2, PA.
PEnnypacker 5-1750
Please
send
me
Offering
AMALGAMATED GROWTH
Name
Duke
Hunter,
N. J.;
Wellington Hunter Associates,
Welsh, Lilley & Co.; Irv
Cohu & Co., New York
Henry C.
Jersey City,
Maxfield,
Charlie Hoerger, Merrill Lynch, Pierce, Fenner
Phil Street, First Boston Corporation; John
Kidder, Peabody & Co., New York
& Beane;
Hoff,
...
Circular relating to the
INDUSTRIES, INC
-
Common Stock of the
I
36
(1012)
The Commercial and Financial Chronicle
.
.
.
Thursday, March 4, 1954
Dealers and Brokers in
Public Utility
Railroad
•
Industrial
•
SECURITIES
New
General Market Municipal
Jersey and
Electronic
and
Guaranteed
Television
Leased
and
Equipment
Trust
Bonds
Securities
Line
Stocks
Obligations
Bank and Insurance Stocks
Mutual
Funds
Shares
Chailes A. Taggart & Co., Inc.
Members
Philadelphia-Baltimore Stock Exchange
Investment Securities
1500 Walnut
Street, Philadelphia 2, Pa.
Philadelphia Phone
KIngsley 5-1716
Teletype
New York Phone
WHitehall 4-7000
PH 677
Bob
McCook, Hecher & Co.; Walter Gemenden, Butcher & Sherrerd; Jack
Weller, Goldman,
Co.; Ellwood Robinson, Aspden, Robinson & Co.; Dunbar Abell, Reed, Lear & Co.
Sachs &
Rambo, Close & Kerner
Incorporated
1518 LOCUST ST., PHILADELPHIA 2, PA.
Phila. Telephone
York
New
PEnnypacker 5-2800
REctor
Telephone
Teletype
PH
2-2820
63
Corporate and Municipal Securities
EDMUND J. DAVIS
Vice
President
in
WALTER G. NELSON
Charge
of
Manager
Corporate Department
Municipal
Washington
New York
Seattle
of
Department
Bond
35 Wall St.
Yakima
1370
Oregon
Waldorf-Astoria
Portland
Harry L. Arnold, Goldman, Sachs & Co., New York City; Russ Ergood, Stroud & Company, Incorpo¬
rated; Walter Fixter, J. W. Sparks & Co.; Tony Coculo, Fidelity-Philadelphia Trust Company
Brooklyn
Broadway
California
Connecticut
San Francisco
Los
Hartford
Angeles
Bakersfleld
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Now Jersoy
Fresno
East Orange
Modesto
Oakland
Sacramenfo
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Stockton
Philadelphia
Vallejo
Harrisburg
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Erie
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/alstOIl
■
—
Lugano
Cv
Members New York Stock Exchange and other
leading
■
Stock
and
Commodity
Exchanges
1420 Walnut Street, Philadelphia
Jim
Cleaver, Goodbody & Co., New York; George Collins, Geyer & Co. Incorporated, Ne*w York; Jack
Klingler, First Boston Corporation, Philadelphia; Howard L. Kellermann, Alex.
Brcfwn fy Sons, Baltimore
Philadelphia's Oldest and Largest Trust Company Offers
Butcher
Clearance
A special department is maintained for
facilities
of Brokers and
a
CORPORATE
large clientele
Security Dealers. We specialize in set¬
tling and handling all types of securities transactions
locally and nationwide. Redeliveries
are
died by messenger or as collections
work of
Sherrerd
&
ESTABLISHED
Correspondent Banks.
are
our
net¬
moderate.
J.
TRADERS
McAtee, Manager
Rudolph C. Sander
Walter E.
MUNICIPAL
promptly han*
through
Our fees
James
1910
Gemenden
TRADERS
James W. Heward, Manager
John B. Richter
Henry P.
Glendinning, Jr.
Inquiries invited.
MEMBERS
New
THE
York Stock
Exchange
American
PENNSYLVANIA
COMPANY
24 Offices
for
Philadelphia-Baltimore Stock Exchange
Stock
Exchange
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•
PHILADELPHIA 2,
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Teletype
PEnnypacker 5-2700
•
PA.
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Founded 1812
Member Federal Reserve System
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York Telephone
WHitehall
4-4927
Volume 179
Number 5304
.
.
.
(1013)
The Commercial and Financial Chronicle
ESTABLISHED
1912
BROOKE & CO.
Co.)
(Formerly Brooke, Stokes &
Philadelphia-Baltimore Stock Exchange
Members
300 N. Charles St.
Locust Sts.
N. W. Cor. 16th &
Baltimore 1, Md.
Philadelphia 2, Pa.
George
Muller, Janney & Co.; Bill Doerr, American Securities Corporation; Sam.
Yarnall, Biddle & Co.; Bud Hardy, First Boston Corporation
Kennedy,
Co.
Hopper. Soliday &
4
Established
1872
I
Members
Philadelphia-Baltimore Stock Exchange
Brokers and
Walnut Street,
1420
Telephone
—
Dealers in
UNLISTED SECURITIES
LISTED AND
Philadelphia 2, Penna.
Teletype
PEnnypacker 5-4075
—
PH 593
Trading Markets
Philadelphia Bank Stocks
LOCAL UNLISTED
Charles
Co.;
L.
Wallingford, H. M.
J.
Thomas
Love,
Geo.
Byllesby and Company, Incorporated; George E.
E. Snyder & Co.; Wm. J. McCullen, Hendricks
SECURITIES
BONDS
RAILROAD
CO.
F. 1. MORRISSEY &
Nehrbas, Parrish &
& Eastwood, Inc.
Finance Building,
Philadelphia 2, Pa.
New York Telephone
HAnover 2-0300
Philadelphia Telephone
6-3295
Rittenhouse 6-8500 &
Bell System
Teletype—PH 279
Investment Securities
LOCAL
—
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& CO., Inc.
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Stock Exchange)
(Member Phila.-Balt.
1519
—
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Direct
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Wire
to
TROSTER, SINGER & CO., NEW
YORK
1
INQUIRIES INVITED
FOOTE MINERAL COMPANY
Edmund
Davis,
Brooke
&
Rambo, Close & Kerner, Inc.; Jack Christian, Janney &
Co.; Ed Christian, Stroud &
Company, Incorporated;
H. M. Byllesby and Company, Incorporated
Co.; Joseph Cummings,
Stump Carothers,
COMMON
BOUGHT
—
SOLD
—
QUOTED
Schmidt, Poole, Roberts & Parke
123 SO.
Phila.
BROAD STREET,
Phone—KIngsley 5-0650
Bell System
PHILADELPHIA
N. Y. Phone HAnover 2-4554
Teletype PH 538
Penn Fruit Common
& Pfd.
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Common &
Preferred
Quaker City Cold Storage
4s of 1973
—
Voting Trust Common
Qkn. E. Sutler
Members
1401
Coffin & Burr, Incorporated;
Harvey Renton, Jr.,
Life Insurance Co.
J. Peiser, Ira Haupt & Co., New York City; J. Albert Leek,
Walter V. Kennedy, Coffin & Burr, Incorporated, New York
City;
Freeman & Company, New York City; Harry E. White, Penn Mutual
Harry
Sc (En.
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Walnut
St., Philadelphia
2, Pa.
Telephone Rittenhouse 6-0308
Teletype
New York City Phone HAnover 2-4552
PH 220
37
38
(1014)
The Commercial and Financial Chronicle
.
.
.
Thursday, March 4, 1954
mm
rnm&d/M
"<<r,
v
11
>
a>y
Maurice
Frank
Newton
Bill
Hart, New York Hanseatic Corporation, New York; Walter Dunkle, Arthur Wright & Co.;
Ronan, New York Hanseatic Corporation; R. L. Whittaker, Robert L. Whittaker & Co.;
Parkes, Arthur L. Wright & Co.; Aaron Netburn, New York Hanseatic Corporation, New York
Russell, Mabon & Co., New York; Homer Wirth, Mabon & Co., New York; Bill Burke, May
Gannon, Incorporated, Boston; Ed Knob, Drexel & Co.; Harry O'Shea, Drexel & Co.
Ed
Gutberlet, Paine, Webber, Jackson & Curtis, New York City;
Capper, Capper & Co., New York City; John FitzGerald,
W. C. Pitfield & Co., Inc.
Milt
&
Bill
Battin, Blyth & Co., Inc., Philadelphia; Jack Dempsey, Kidder,
Peabody & Co.; John Derickson, Blair, Rollins & Co., Incorporated
"v
Joe Laut, Jenks, Kirkland & Grubbs; A1
Willis, H. M. Byllesby and Company, Incorporated; Coit
Williamson, Schmidt, Poole, Roberts & Parke; Desmond McCarthy, Union Securities
Corporation, N.Y. C.
Phil
Clark, Amos C. Sudler & Co., Denver; Ed Welch, Sincere and
Company, Chicago; Vic Mosley, Stroud & Company, Incorporated
A.
■
r*
■ <.
■
*.
Jim
McFarland, Hecker & Co.; John Stein, Wm V. Frankel & Co. Incorpo¬
rated, New York; Bob McCarthy, First Boston Corporation, New York City
L. Hutchinson, Kidder, Peabody &
Co.; Floyd Justice, Kidder,
Peabody & Co.; Henry Bruns, T. L. Watson & Co., New York City
Leighton McIIvaine, Goldman, Sachs & Co.; Bud Schaufler,
Schaffer,
Necker & Co.; Frank Coleman,
Gregory & Son, Incorporated, New
York;
Austin
Patterson, First Boston Corporation
Number 5304
Volume 179
.
(1015)
The Commercial and financial Chronicle
.
.
manufacturing and chemical firms
in this country. A great bank will
send
from
companies. This is something that
will mean income for you on the
Salesman's
fifteenth of every
postman
check."
Corner
thing.
wife
By JOHN DUTTON
month and the
.bring
will
he
Then
the
you
noticed
took
in
more
this
idea.
others?
those
about
to
I
want
to
bought quite
a
lot
"That was a good one
suggested to the doctor—the
time
if
that
town
this
with
said the salesman, man is right I think you ought to
The story I am going to tell "all that the doctor has to do is to buy some of this and let's give it
a try."
you
this week comes from the tell me if he will OK this and I'll
The sale was made for $5,000
actual experiences of a friend of take care of all the rest." By this
and the doctor signed
a silpple
mine who has quite a record sell¬ time the doctor was looking like
order directing the trustee bank
ing Mutual Funds. This man is a a cornered rabbit with a couple
wholesaler for one of the more
I
saw
you
he will
him
ever
be
he told
back
come
Income
Checks*
month made payable to his*
have surely done, a selling
on
the doctor.".
Now Continental Sees.
of the three funds. He men¬
laugh.
Those
them.
of
every
that
noticed
last
some
see
he
you
like
I
a year
HOUSTON,
tioned it to this dealer who began
six
How
and
the doctor had
supposed to double in value
months. Where is it now?
was
wife. About
records
the
going to tell you
have
had about
am
job
you
and
buying that. How about the stock
you bought three years ago that
some¬
that
what
right
now
I
enough of your buying this
No longer was the doctor's
sitting there with a pained
"That's what I want—you say
see
that's
"So
Well, I
say.
expression of doubt on her face.
The air had cleared and she said,
Mrs. "Ima Doubter" Got
over.
can't
wife
dealer friend. He had looked over
to his
it. I'd
you a
check every month rather buy some stocks and pick
the dividends paid by these 'em myself." With that, the wife
replied, *'T still
hounding him to put it into more
payable
later my
wholesale friend was back in the
doctor's home town to call on his
to send the checks made
"Nope," he
of hounds at his heels.
me
Texas
—
The firm
4307 Mon¬
Boulevard, has been changed
Continental Securities Corp.
name
of Bryan & Co.,
trose
to
to
looking for you
shotgun. Do something for
Joins Ferrell & Ferrell
your
I
the Checks
he
assist
get a check every
month."
checks
come
in
here
and
if
a
(Special to The Financial Chronicle)
wife, you told him.
He's
now
got $82,000 worth of those
GRAND
JUNCTION, Colo. —
three funds and he says his wife
Jesse B. Carpenter is now affili¬
won't leave him alone. Every time
ated with Ferrell & Ferrell, 411%
he saves a few hundred dollars he
"That's right,"
has
to
hide it because
she keeps Main
Street.
Mutuals and
quite
out of his way to
progressive
often
will
goes
some
of his salesman friends
closing business. This is the
it goes.
He
was
having an interview
with a country doctor who had
in
way
the
being quite a
This doctor had
securities in his day
reputation
wealthy
bought
of
man.
some
AMERICAN ENKA CORPORATION is mailing
with the result that he had made
inter¬
this instance, had set up the
the wholesale
with
view
to
in
The salesman
mistakes.
few
a
stockholders its Annual
includes
a
in
man
some
are
order to
explain how it was pos¬
sible for the doctor to achieve a
Report for 1953 which
25-year Progress Report. Here, in
of the
brief,
important things the company
accomplished in its 25th year:
satisfactory return through
purchase of three
Mutual
funds
that1 would
provide him
and his wife with a monthly in¬
very
the
V
return.;;
come
:
<'
•
Established
discussion
a
increased
the
records in sales and production:
approximately 6% to $65,106,610;
...
doctor
was somewhat skeptical..He said
he believed- he would be better off
After
new
increased sales
production of tire and textile yarn from
95 million to 102 million
pounds.
.
,
buying individual stocks. Then he
complained that he wouldn't pay
4% initial fee when he
bought a Mutual fund (the sum
that
was
being considered was
$50,000 and the 4% applied). He
said he didn't want to be hooked
any one a
$2,000 just to buy, adding that
if he wanted to sell he would be
for
much
that
out
Increased net income
equal to $5.74
by about 6% to $6,410,939,
share against $5.42 the year before.
Introduced two important new
products
developed in its research laboratories:
These ob¬
money.
per
(1)
,
jections were answered but it was
becoming increasingly clear that
an
improved tire yarn—ten percent stronger
but with
no
increase in
~
price, and
sale would be made.
no
(2) JETSPUN, the first domestic
wholesale friend
Meanwhile my
noticed that the doctor's wife was
rayon
filament
solution-dyed
yarn.
sitting quietly in a chair and was
reluctant to enter into the discus¬
She
sion.
continued to stay aloof
of
asked
were
gave
Finally
sale could
and
little her face told the
Sensing the situation, my
friend told me that he decided to
said
nylon field by commencing construction
nylon plant at Enka, iNorlh Carolina.
COt
began to act
although she
She
changed.
hostile
a new
attitude of the
be made unless the
wife
Entered the
of
answer.
it became clear that no
almost
she
and
her
non-committal
a
questions
several
though
even
very
story.
if they
methods and
drastic
try
A
25 YEAR
didn't work the sale was lost any¬
way.
.
make
to
like
would
how
"Doctor,
-
1
S/V'
and he
He turned to the doctor
said,
you
wife happy?"
your
replied, "What do you mean?"
She stopped her
sewing, looked
He
stared at the three men
who were previously talking se¬
curities and now started to discuss
her. "Why just this," the salesman
went on, "I realize that we have
been talking about an investment
for you both, but I can see that
you
just haven't become con¬
vinced that this is the time for
This year, as
and
up,
act.
to
you
make
So
American Enka begins its second
quarter-century,
in the
it operates two of the largest rayon plants
industry and is broadening its activities to
the manufacture of
to
include
AXWAt. 8FJ*<)8T
nylon. Its present rayon plants
provide employment for over 4,700 people, and
investment has grown from $10,435,000 in 1930
its plant
$78,638,000 at the present lime.
We will be
like to
I would
pleased
to send you a copy
sensible suggestion. I am
a
of
our
25th Annual Report on request*
going to suggest that you in¬
not
vest
sizable
a
think
at
this
income.
I
should
time.
President
I
have
this
believe
that
should
you
monthly
have
we
sum|' as
discussing
been
get
check
your
wife
every
month." Then he turned to
her
and
he
said,
"You
a
see
Mrs.
Prospect what I am suggesting is
that
you "
month.
have *
a
check
This isn't the
vestment
that
sort
have
you
speculative
land
like
a
lot
of
things that may pay you and may
not. This investment is backed up
by over 300 of the finest business
firms,
steel mills, electric plants,
ENKA"""'"
*
I
206 Madison Avenue, New
been
probably thinking about—one that
is
AMERICAN
every
of in¬
30
Enka, North Carolina
York
40
(1016)
The Commercial and Financial
Chronicle
to make
progress
Continued from first page
Republican party, as well as the large New Dealish ele¬
ment in it, during the past few weeks makes it clear be¬
which has
and,
our
part,
something wrong
evidence of its presence—and
Another
in this
in
some
time past
been
of
time and
What
aperture
shaped
depression of the 'Thirties
to
evident all about
now
which
be traced the
may
us
the
was
ultimate outcome of the economic and
financial sins of
World War I and the decade which
followed it, and that
the steps now
proposed for a prevention of a
of that experience begr a
very close and deeply
resemblance to those which caused it.
repetition
disturbing
copied the economic vices of the 'Twen¬
ties and
forgot about the virtues. It was not able to banish
unemployment, or even to make a great deal of head¬
way in that direction. The
drugs of the 'Twenties had
lost their virtue
which at
by the 'Thirties. It
World
was
II
to work, and it has been
World War II and its aftermath
which, along with the con¬
tinued inflation of the late
'Forties and early 'Fifties, have
kept the pot boiling. Now
we are
trotting out the
same
old
remedies which failed in the
'Thirties—which in point of
fact in a somewhat
different form were in substantial
part responsible for the distress of the 'Thirties.
a
new
ferent solvent, need not and
should not deceive
anyone. A
year ago all but the die-hards
among the New Dealers and
the Fair Dealers were
conceding that monetary and credit
management had during the war and the earlier
postwar
been enslaved to
years
a
billions—even hundreds
it
as
could
labeled
an
Treasury which wished
its
billions-—for as nearly
nothing
by any sort of device]
Something that was
''independent" Federal Reserve system was
fairly well established before
took
to get
of
office in
ministration
the present Administration
Washington, but spokesmen
for that Ad¬
were
quick to give their approval, and all
but universal
praise was bestowed upon the
powers that
be for their
money market policies which
basically were
said to be
designed to give natural forces free
play, or at
least
relatively free play.
But how different now
the
of the Federal
debt—or
picture! Free monetization
anything else handy—which
then regarded as the
root of
great evil has
prescription for
now
salvation. Free
reserves, which
ago were negative in the
amount of some
of
billion
a
more
than
our
dollars, by end of last
a
was
become the
billion and
year were
half.
a
a
year
three-quarters
positive by
They are still large. There
technically no pegging of any particular
rate,
,.u^ treasury bills now yield 1 % or less. The rest of the
list is
behaving similarly. The Federal Reserve authorities
has
been
have done about all
they could
borrow and
spend. About the
rowing
so
encourage business to
only increase in bank bor¬
far observed has been
by farmers who formerly
got their funds from the
Credit
to
Corporation,
ments which
are
and
pressed
Treasury via
the
not
the
and
possibly by business
by the failure of the
establish¬
Treasury
for
best
third
and
the
and
appears to be a very
neering problem
and
the
basically
last
important
receiver
itself.
standard
a
receiver
Those
re¬
fre¬
the
with
It
mono¬
the
color
in
black
receiver, and red blocks represent
the
sections
added
for
receiving
This requires a substantial num¬
of tubes and their associated
components. So the first sets
using
the
three gun tubes
will
have
about 35 to 40
receiving tubes and
ber
to add
as
shown
standard monochrome
a
color.
re¬
substantially to the cost of the
blocks
represent
difficult engi¬
well
as
is
re¬
all
the necessary extra
shown in this chart.
'
ceiver.
Also, while the tube itself deems
parts,
as
increase
University
is
being
of
California,
promoted
diagram
at
the
top
of
tron
this time it is called
instead of
The
an
make
this
Then
practical
for
I
reducing the
the
progress
of tubes
number
theoretical
minimum
of 25 to 30 tubes and
in reducing
the cost of color
picture tubes by-
assumption:
hybrid variety
of the good
many
of
toward
to
us
incorporating
engineering and
mass
production.
This, of course, will take
several
the
are
just
of
which
a
very
strung horizontally,
15
mm.
forward
of
apart.
it,
is
a
plate, but instead of the tri¬
dots, it has horizontal lines
red, blue and green phosphors
ads of
15
are
wide
mm.
and
corre¬
lated
with the wires.
As the electron gun
projects its
beam through these
wires,
is
applied
moment
to
will
them
volt¬
a
that
allow the
at
beam
straight through and pick
up and energize one line of
phos¬
phor, or tilt it up just enough
to pick up the line of
phosphor
tube
that
would
be
size,
color
rectangular
in
the CBS method of
the dots
the
tube
using
picture
CBS
type
down
alternately tilts
and, at the
same
horizontally
the
color
up
time,
across
the
plate, the pic¬
picture is de¬
torial content of the
veloped.
type of tube
also
has
the
prob¬
lems
it
connected
is
such
a
art; because
tubes
more
well
with
new
and
we are
and
it,
because
complicated
adding
other
so many
electrical
components; because there
of
are
so
three
using
using the
RCA, and
many more conditions introduced
that can cause a bad color
as
electron
the
beam
Lawrence
when
all
to
get 85%
through the mask
picture
related to today's monochrome
pictures.
of
For
as
;
used
well
be
years
color
growth
for
white
industry
our
greater than the
and
television.
Another
important
factor
in
good quality color television when
it comes is the
transmission, be¬
cause
it
is
so
much
compli¬
more
as
of
have
be
to
related
to
will
one
a
control
more
to
be
op¬
by the customer, there
controls
many more
be preset
that
are
have
to
by the serviceman.
These
can only be set
properly
good
color
transmitting
conditions and with the limited
under
number
of
even
of black
era
number
only
when-
television
set
we
monochrome set. You
observe that while there is
available
but
away;
comes,
color
a
on
erated
in small quantities before the end
of the year 1954, or it could be
time
on
those
A tube of these general charac¬
could
this slide
on
the additional
variable controls that
does; and
things exist in
the same tube, we will have a
large, rectangular, bright, clearly
defined color picture.
teristics
example,
show
tube
of these
will have been launched
providing
As the beam
This
in
.
the
several
of
inches
of post acceleration of
the electrons
that
sWeeps
the
mask,
system of
to
below it.
the
get
some means
above
it, or tilt it down enough
pick up the line of phosphor
to
aperture
gun
21
shape, using
photo etching
the inner front face of
on
forward,
go
face
however,
on,
reasonable
the
at
consists
across
approximately
and
goes
is
That the future ideal picture tube
will probably be a
focus mask
a
mask
frame
fine wires
to
it
the
by
aperture mask.
focus
heavy
one
time
think
slide, points of these three and eliminat¬ years.
will observe that it uses
only ing to the greatest degree possible
During the early stages of color
gun which projects the elec¬ the objectionable elements.
TV, we will all have to give
great
beam through a
mask, but
Therefore, we might visualize a consideration to the
service
you
age
As
as
color
available, it is
him with quite
transmissions
going
a
to
present
problem.
He also will
require a very ex¬
and additional education
tensive
in the reasons,
"why" and "what's
happening" when
he adjusts these
advantage of being simpler in cated than monochrome.
various controls.
Therefore, if he
However,
is going to be
construction, but its most impor¬ within the next several
adequately prepared
years,
tant advantage is the
to cope with his
possibility many
of
the
major
problems
responsibilities,
of a brighter
picture, for in the should be ironed out and if it has he has to become much better
RCA type of
tube, the holes in the the appeal to the advertizer and acquainted not only with the elec¬
aperture mask
it is estimated
are
so
that
tiny that
only about
15% of the electrons get
through
mask
to energize the
color
viewer
ways
that
is
indicated
will be found to
creased
pay
now,
the in¬
cost.
human
dots.
The
The
rest
of
them
are
absorbed
by the mask, whereas in the chro¬
matron type of tube, almost all of
them get
greater
through because of the
spacing and the voltage
applied to the wires tends to
celerate
called
them.
This
is
ac¬
sometimes
post acceleration.
At the present
this tube also has
time, however,
some
very seri¬
defects. The
quality of defini¬
tion in the picture is
substantially
below the other
two, both in color
and
when
reproducing
mono¬
chrome programs.
tronics
art,
but
also
with
the
science of color, and the science
of
optics, especially
i
the
ous
Commodity
tube
to
get
this
radiation down within FCC limits
spherically shaped
and
spherically
Chromatics Laboratories.
If you will take a look
that
drugs have meanwhile been given
times, perhaps, are carried in a dif¬
name, and at
a
mask
by Dr. Lawrence
of
New Names for Old
Drugs
The fact that the
good
that shows excellent
times called the Lawrence tube
it was developed
one
War
long length put the idle
filmed
were
transmission.
For this reason, the chassis
cost
relatively simple, the cost of com¬
will be at least double a
materially ponents in the receiver is quite
present
one. The color tube is
going to larger sizes/ These high. One or two manufacturers
priced now
at six times that of
apparently are primarily the rea¬ have already announced that
today's 21-inch
they
sons why the RCA
type has not will use the chromatron tube in monochrome tube, so add to that
the
yet appeared in 19 and 21 inch their first models of
extra
dollars
involved
in
color
re¬
sizes.
; i
ceivers and they are probably as¬ cabinets, packing materials, more
The CBS tube also shows a real
suming that they can get by with testing, higher factory costs and
discounts from high
possibility in being made in rec¬ the poor
lists, and we
resolution, and they may
can realize
tangular shapes which should be for a short
why the first color sets
period of time.
will list at over
another important factor.
These
But it is my personal opinion that
$1,100.
tubes have only been
It is
produced, so after the glamour of the larger
interesting to note that the
far, in laboratory quantities with size and
slight improvement in associated circuitry in the color
production
scheduled
to
start brightness wear off, the customer section of the receiver
consists for
within
the, next
six
to
nine will become extremely critical of the most part of
coils, condensers,
months.
the definition and picture
quality; resistors, transformers, etc., that
The third
type of color tube is particularly since such a high are generally common to
mono¬
substantially different in basic standard has already been estab¬ chrome sets; so the
major avenue
operation from the other two. It lished in today's black and white for future cost reductions lies, in
is the i chromatron
the normal
tube, or some¬ receivers.
engineering
of
The New Deal
gap
when
.
morbid state of mind
by the
Shielding the tube
point ceiver
sufficiently
color
should
sus¬
can
Because of the sweep power
quired
plate, many of the
problems such as focusing, fring¬
ing, and
dynamic
convergence
more
which grain wiil grow and which will
say with assurance is that the great
say
we
of
promise in larger tube sizes is the
danger from patent remedies
than from
any ailment ifor which these prescriptions are
professedly written. We gladly leave forecasting to those
who feel they have found the
way to look into the seeds
not.
important
tube
fact that with
his
have for
we
we are
therefore, three-quarters
million phosphor dots.
Also the
six ounces.
part in these circumstances,
wishing to retain his patients, is constantly under pres¬
sure to
yield more to his patients' desires than to his own
better judgment.
For
the
equipment and circuitry added as
is shown in this block
diagram.
struc¬ quency, it causes it to radiate in¬
ture of the tube is eliminated and
terference
and
seriously
affect
the six pounds is reduced
to only other
communications
services.
really present in some sort
of incipient
stage and to persuade him to begin treatment
for some
infirmity the presence of which he is far from
pecting that
build.
to
fill
projection rather than tele¬
chrome
heavy internal
that there is not
on
sometime
will
color
as
expensive
very
but those produced
fall short in quality
now,
The
Color Television
a
The doctor
take
they
is
been able to discover is
certain.
to
element
yet given no
perhaps to convince the doctor that that ailment he has
not
up
as
Hypochondriacs
as
are
movies
temporarily,
Continued from
page 9
common
sure
will
Color
time
some
vision
enough among the politicians
of both parties. There is
entirely too much disposition
among us to rush to the doctor every week for fresh ex¬
aminations to be
and
for
chains
camera
screen
One can scarcely escape the impression that we are
developing, if in fact we have not developed, a nation of
economic hypochondriacs.
Certainly, there can be no doubt
that this ailment is
Thursday, March 4, 1954
.
question
freely
as
suffer.
now
yond peradventure of a doubt that the view of the late
Senator was, or at all events now is, shared widely.
Economic
defense contracts
on
The Lord
only knows what will next be done by the
frightened politicians in Washington, but all
they talk
about are
steps the like of which brought the evils we
See It
We
As
payments
heretofore.
as
.
.
Near
For the
Term
No
term, we must as¬
only
an
extremely
percentage
of
television
small
programs will be in color because
they
York,
be
only
can
orginate
Hollywood, and
or
carried
network,
the
over
as a
in
New
can
only
microwave
full four megacycle
band width of flat response is
quired for color and it will
sometime
before
equipment
of
can
be
Local
the
the
rebuilt
megacycle
Conversion
near
Sets
that
sume
re¬
be
terminal
coaxial
to
cables
provide
four
response.
pick-up
is
as
related to the
eye.
Outlook
out
of
the
Into
Another
should
ably
that
already
is
Monochrome
Receivers
point that I think
cover,
it
of
Color
we
but which is prob¬
apparent to you, is
completely
impractical
and uneconomical to convert
any-,
one's
present
monochrome
re¬
ceiver
to
Since
a
only
color
receiver.
small
part of the
present set would salvageable, and
even
if
ficiently
doing it
the
a
serviceman
was
suf¬
qualified, the cost of
on a service, or job shop,
basis would completely offset the
Volume 179
of
amount
Number 5304
...
The Commercial and Financial Chronicle
salvage of the present
equipment.
By
now,
have
you
come
to
the
cause
of
this
given
you
probably
conclusion
that
the
on
the
for
problems
of
gun¬
this industry, or any other one has
ever
envisioned—that's
not
the
case.
I'm
probably
A
enthusiastic
more
starting from scratch
buy "the works" it
just under $2,000.
to
complete
ment
set
of
test
equip¬
includes:
Oscilloscope with
wide
pass
band
Santa- Claus
finest
have
will cost you
be¬
long discourse I've
color television that I'm out
ning
If you are
and
room, but
mine is long
thusiasm, two to five
for it
years
reach
and
to
prefection.
This is good as it will require the
engineering
know-how
and
Total
that only a handful of the
television companies possess.
top
group.
Second
has
field
so
engineering
in the color
working
years and we receive
indications that our pro¬
many
many
equals
gress
the
best
that
we
enthusiastically accept this engi¬
neering challenge.
Here
is
picture of Motorola's
a
first color television set
which
on
the design has already been com¬
pleted and which
we
now
have in
limited production.
It
the
uses
RCA
type of color
these sets during the first half of
1954 only for field testing, but in
part of the country where
every
color transmission is available and
under
field
conceivable
every
conditions
that
can
set
of
possibly
develop.
This will
from
help
tremendously
engineering standpoint to
an
us
in actual field operation
prove out
all of the work that
doing
in
the
have been
we
laboratory
for
the
past several years. It will help
factory
much
organization
to
our
become
better
acquainted with all
of the problems in the manufac¬
turing of color receivers, and it
will
be of great
ing
field service organization,
our
the distributors
is
It
value in educat¬
and
dealers.
reasonable to
by the middle of next
strides
will
bedding
have
down
situation.
the
made
whole
color
By that time also, pro¬
duction of color tubes should
gin to step
be¬
sufficiently and
have larger tubes
up
even
may
that
in
we
by
time.
big pot of gold we have all been
looking forward to, so let's all be
sure
that you launch your pro¬
gram into these golden years on a
very firm and solid foundation.
Motorola
is
starting
training school
on
starting with
own
are
Feb. 8 and
they
are
will
have
ers
who
our
adequately
trained
schools for
those
interested
are
in
having
their service personnel trained by
Motorola. Our present thinking is
that the school will be for
a
week
course,
period and this, of
is for
men
vision. You
it
who
are
three
fully trained
present black and white tele¬
on
will
therefore
can
considerable
take
see
that
time
to
qualified service per¬
indicating the further
complexities of color television.
train
even
sonnel
—
Test
You
quire
will
Equipment
also
be
you can see that get¬
service will re¬
substantial
and
of
amount
training time.
will
FCC
recall
Dec.
on
officially
17
approved
the
color
On Jan.
29, after
Federal
40-day wait¬
a
what is termed the
on
register,
the
ruling will1
be considered
time
official, and at that
broadcaster
and
any
any
network
want
within
that
and
facturer
any
they
standards
lished
emanate
can
program
have
the
estab¬
manu¬
produce and promote
television
receiver
in
whatever
practical
if he desires to do
it
talk
been
receiver
any
color
can
color
a
is
fashion
that
so.
wish tonight to
after having covered
our
to you,
previous subjects, as to a practical
approach
to
getting into color
television
profit
as
dollar
a
business.
and
The
cents
complex¬
ities of color television that I
pre¬
viously discussed indicate that a
color television tube will continue
to be high cost for
many, many
months, and possibly
to
A
come.
like
baby, must gestate.
a
come
when
are
they
out
as
From
estimates
of
tube,
Things
the
blue
complicated
as
device
able
few years
a
color television
just do not
a
color television tube.
a
have
we
been
make, and checking with
industry sources, it seems
possible that the industry may be
able to manufacture enough color
tubes
to
permit the
between
manufacture
100,000
television
and
150,000
receivers.
You will be
from
hearing a great deal
industry
in
various
the
and
newspaper
about
the
trade
development
articles
of
tube
manufacturing and what the fu¬
ture
of color television
duction
be.
may
tube
pro¬
urge
We
that
be very cautious in your ap¬
of whatever you might
you
service
color sets.
in
For
who are completely
equipped for black and white and
interested in a minimum expendi¬
color
television, it
will require approximately an ad¬
ditional $600 in equipment. This
is what you will need:
about
Total
because
comments
some
aging
and
part of
stories
$325
$600
the
be
may
others
ex¬
encour¬
pessimistic
weigh
to
Therefore,
you.
the
all
information
recognize that there is
to
be
on
a
done
on
people in getting the
out
in
a
but
great deal
getting production
basis, and we feel that
the
year
1955, particularly the
latter part, will start to show pro¬
mass
duction
in
good
quantity and
quality, with the possibility of a
million sets in that year.
As you have already read in the
trade press, Motorola established
price of $1,150 for its first color
television receiver.
based
cost
of
This has been
the fact that
on
due to the
the
present parts of color
picture tubes and the complexity
of the
circuitry
have
in
realistic
any
his
as
manufacturer
set, this price is
is possible
this
at
time.
If you
have
we
not
too
will take the information
already given you—and
muclr of
it
is
new
as
a
great deal of it has been cohered
in
national
a
color pictures
is
will
in
the
color
We
station
a
television
to
be in
transmission
business it must equip itself with
at least one general kind of equip¬
ment, and that is a set of moni•toring equipment.
This equip¬
the
costs
station
mately $20,000.
able
in
the
to
approxi¬
will be avail¬
It
stations
that
want
trade press—and set it off
side, we would like to give
you another picture and then we
will eventually marry the two.
second
business
picture
broadcasting
now
has
area
to
of
do
our
to
color
stations in
over
monitor because
networked
the
to
of two ways.
one
continuous
a
lay;
a
be
must
One:
microwave
Hollywood with only
microwave relay, they can carry
the very complicated color signal.
But if you have any part of your
handled
telephone
had
cable
by
has not
company
the
yet
as
opportunity to go out and
tune up that cable so that it will
carry the color information, and it
will take the telephone company
an
fair
a
amount
of
time
to
the
But
expect that they will
country and
do
We
believe
summary,
that
three
All
it
of
in
the
of 20
We expect that
carried
year
an
to
minutes
25
the program will
rotating
a
on
facility.
basis,
starting next week by NBC, and
covering most every
that
like
and
see
you
kind of pro¬
on
television.
From
attempt to marry
us
indicated that
I have
radio
to
will
radio
was
past few
a
very
doomed. Yet,
of
number
the
United
indicate that
receive
one
On
a
basis of
dealers
television
States, this would
the
economy
1954. It is then
quite
pos¬
dealers'
and
floors
too
not
in
or
many
place
country
the
with the
same
airplanes
and trucks. We still have the rail¬
doing
planes
fine
very
a
public
trucks
and
job
the
and
have
of,
air¬
taken
their place side by side as another
medium of transportation.
While
possibly two color here
sible that sets will find their way
this
of
changed radio only slightly. It
was
they would probably
or
during the
have witnessed
substantial volume of radio
serving the
ably, at the most.
that
set sales. Television took its
in
the
on
felt
you
years you
roads
receivers made, prob¬
150,000
television.
came
as
we
a
feel that color will be
commercial practicality
beginning
late
turing in
1956,
in
1955
and
ma¬
it again will not
their
replace black and white but will
color
be
a
supplementary
television receivers will therefore
television
reach the public. All of these sets
means
of
ceiving.
transmission
and
that.
re¬
ac¬
complish that pretty well by the
end of the year.
Some of your stations may evi¬
an
interest in
emanating
dence
of color
kind
some
their
on
own.
If
they do there are different
things that that station can do.
First, if it wishes to emanate its
own kind
of commercials by the
use
of a color slide projector it
Swiss BANK
CORPORATION
Head Office: BASLE,
SWITZERLAND
will have to
order
buy equipment in the
$30,000, the availability
of
which
of
will
not
start
until
ap¬
proximately mid-'54, and it will be
relatively slow in coming through.
Zurich
St. Gall
•
Geneva
•
La Chaux-de-Fonds
•
•
Lausanne
Schaffhouse
Neuchatel
•
Bienne
•
Or if it wants to go one step fur¬
ther and emanate its own color
movies
will
it
have
television
color
a
to
CAPITAL
projector
for
film, which will cost somewhere
in the order of $50,000.
It is un¬
likely, however, that such a de¬
be
available
to
vice
will
your
stations until the latter part
year at the earliest, and
of
RESERVES
purchase
any
of
this
160.000.000 S.Fes.
66.000.000
S. Fes.
v
Statement of Condition, December 31,1953
ASSETS
Swiss Francs
until sometime in '55.
And finally, if your station is
thinking seriously of broadcasting
its own programs, it is going to
cost them a minimum of $70,000
to equip that station with a single
camera
chain. Having had just a
bit of recent experience in tele¬
vision studios, I have an apprecia¬
tion of the fact that you cannot
the simplest program
single camera chain; so in
station in order
to do an adequate job of ema¬
nating its own live programs will
have to spend somewhere in the
order of a quarter of a million
dollars for its studio equipment.
put
414,286,135
730,740,458
Short Advances
Advances to
11,799,329
Customers, etc
a
all probability, a
Any station that wishes to ema¬
nate its own color program of any
kind, whether slide, film or live,
will also have to make
958,175,101
Government and other Securities....
Syndicates
Other
499,182,852
500,002
Assets......
7,130,196
Bank Premises and other
Property..
11,500,000
Total S. Fes.
2,980,818,485
LIABILITIES
even
on
with
347,504,412
Banks and Bankers
Bills Receivable
probably not in reasonable supply
Cash....
Share Capital
160,000,000
Reserves
60,000,000
Sight Deposits
Time
Fixed
Swiss Francs
2,003,801,589
Deposits
437,228,329
Deposits ("Obligations")
219,425,000
Acceptances.
35,343,383
Other Liabilities
42,190,154
Profit
22,830,030
Total S. Fes.
2,980,818,485
addi¬
some
tional investment in changes in its
transmitter.
Now with this kind of situation
and breakdown
ing
we
area,
think
much
to
will be
will
show
sell
in
the broadcast¬
how much program do
our
sets
available?
there
be
How
for
against?
NEW
YORK
AGENCY
Main Office, 15 Nassau Street, New York 5, N. Y.
49th Street Office, 10 W. 49th St., New York 20, N.Y.
us
The
LONDON
OFFICES
that color has been
officially approved. The networks
will
start
broadcasting in color
you
will'y see considerable
be
the
standpoint
and
of
many
of
the
more
come.
indicate
commercial
a
in 1954 there will be in the order
on
will
and
When television first
and
Now, let
homes
to
it will be extremely high cost and
the economics are similar in com¬
the
of
parison
sets in
months
a
and
you,
information
the
favorable
horizon
in
has
color
will hear considerably
you
service to that network
the
that
get
around
we
you
possibility of color being here in
this city sometime during 1954.
months
these facts.
or
little dollar and cent value to
during the year 1954.
very
of color per day coming from any
net work
that will give steady
gram
that color
going to be a con¬
is
versational subject and will have
order
in the
a
The telephone company has ade¬
quately arranged its circuitry on
the microwave relays to where, if
your town is connected with New
network
From this you can see
television
of
five
be
Still "A
Conversational Subject"
re¬
secondly: over at least
partial cabled connection.
or
York
estimate, in
very mod¬
business.
a
your
Color Television
about
two hours of color,
maximum, coming from any net¬
work, which will be somewhere
reasonable
supply all through
Now, not every station in
the country could carry color to¬
short
extremely
1
average
it
1954.
day if it had
be
there will be during the last
order for
In
network
a
have
on
complicated great future for each of
very
supply.
one
and
plicated and costly for
will only
erate effect
because
is extremely com¬
operation. The cameras will be
slow in coming through because
the tube that is needed to pick up
and
The Station Broadcasting of
the
to
with the
$275
of
because of the various interests
The
A white dot generator—
A teledapter—about
hear
or
citement and interest that prevails
in the color television
industry;
those
dealers
ture to service
read
a
dur¬
service.
to
other
of
primarily
sources
fundamentally be
ment
television.
as
interested
will
neces¬
color
a
You
will
test equipment necessary to install
and
into
we
deal¬
network
ing 1954, and we can expect that
by the end of 1954 color television
the
of
It's rough—but it's
money
the
its
distribu¬
tor service personnel. As soon as
we
market,
both
praisal
Remember that color TV is the
color
to
will
Color
ting
that
year, great
been
UHF
a
$950
From this
color
assume
$1,925
from
come
sary.
So
tube which produces about a .12%
inch picture. Our plan is to use
in
are
ing period
Motorola
—
been
you
another
figures.
Motorola places itself well within
this
'
color
All
studio
color
this
least
at
$100
re¬
sources
through
Vacuum tube voltmeter
mendously complicated art and it
several
facilities
wood.
one or two lo¬
York and Holly¬
will be at the prices I have men¬
tioned before and we feel that
there will be limited
We think
studio
$350
$575
If
out
every two weeks basis
during the first quarter. The pro¬
gramming will emanate almost
once
a
color
a
add
take
as often as they can
pos¬
sibly make it, but possibly only
on
There is today one
television studio in
existence at NBC. CBS is ready¬
ing such a studio; and NBC is
readying a second of their own.
program.
nine months of this year
not
shake
will be
of
good
exclusively from
years,
will
broadcasts!
cations— New
two to five days, weeks, or months
—and for these very good reasons.
tre¬
These
area.
$500
en¬
a
their part to get color
on
this
$400
range
First—Color television is
activity
into
Sweep generator
Dot generator
Std. signal generator
about color than any man in this
41
(1017)
number
of
of
number
the
number
programs
of
of cameras,
is
a
factor
studios,
99, Gresham Street, E.C. 2, and 11c, Regent Street, S. W.l
the
and the cost
%
42
(3018)
The Commercial and Financial Chronicle
Continued
its
from page 4
performance
times
many
..
.
Thursday, March 4, 1954
be¬
yond that of the original models.
What We
vision is
expenditure for
this
that
expect
take?
color
"television will be justified by the
jresearch and development in
results, to
ttian
greater extent
expenditures for
into
major industry
a
somewhat
Other
hesi¬
makes
all
tant to
offer predictions, it would
uot
of
us
unreasonable
be
of
terms
rapid
of
in
iO-inch
Shown
fering
tube
in
research
which
to
devoting its talents
funds?
The
cover
products
ness
a
machines,
of
range
busi¬
household
appli¬
safety devices and military
ances,
Many
weapons.
shall mention
of these—and
few in
a
I
detail
more
production for the first receiving
already in use, but are un¬
dergoing
constant
improvement
sets with the
and
.area
this
onstrated,
well
was
the
—are
was
its way
on
islage—a
brightness. And
being dem¬
research program
same
tube
new
now
into the next
tube of another
larger
type, capable of producing a much
brighter picture than any present¬
finding new application in
that are certain to make for
ways
better working
of
us.
that
the
mass
ly known tube.
As sets go into
production, development of
techniques
and
means
of
until
■manufacture will
electronics
sets
prices.
bring better and
lower
at
That
is
the
history of
ingenuity and manufac¬
American
turing.
television
equipment,
of
receiving equipment,
also
had
we
to
develop
the
equipment for studios and inves¬
tigate the problems of producing
.shows for color television. In
"RCA
and
1951
NBC
equipped a small
.studio in Radio City and in 1952
-equipped and staffed a large stu-dio
for
color
•Colonial
and
Theater
at
in
62nd
year,
Xarge
studio
York, and
studios
will
also
the
Burbank,
be
•shows
of
color
color
facilities
shows
These
in
color
of
many
•cities served by NBC.
vision
broadcasting
studios
more
will
and
the
To obtain
complete service of color
tele¬
require
consequently
larger capital investments.
A
Color Television
notable
New
on
"first"
Year's
broadcast
a
live
the Tournament
from
recorded
of
Roses
Parade
This
transmitted
was
by 22 television stations from Los
Angeles to New York.
Perhaps
people
color and I
it
saw
€ce
it
This
will
more
be
never
the
was
this parade
saw
in
believe everyone who
again
in
black
the
scientists
have given
neers
us
transistorized
form
of
tiny,
and
satisfied
and
to
white.
pickups
glimpse of
a
future
in
the
radio
personal
re¬
One experimental model
larger than a package of
cigarettes and can be carried eas¬
little
is
ily
in
the
breast
suit—yet
its
that
to
oares
pocket
of
your
performance
of
outstanding
brought to the
that this
process of continuing research and
•development in color television,
by RCA and by other companies,
will
en
be
few
have
a
other
.the
will
rewarding
substantial scale in the next
years.
New
developments
a
that
commercially
of following one an¬
rapidly in electronics
way
so
cannot
we
further
be
made in
as
some
improvements
by the time it
lished
foresee
the
is
color
as
of
that
system
fully estab¬
black-and-white tele¬
television
this
into
pro¬
can
to
photography, with
tape replacing film in
us
an
era
electronic
magnetic
functions.
of
range
There is
military use,
ability to control
fensive
and
and
to
defensive
detect
hostile
the
forces
distances.
devices
extending
and guide
our
of¬
weapons
approach
over
There
ever
is
of
almost
limitless application of electronics
to the home in new methods of
lighting, heating and cooking,
of
entertainment and education.
A
recent
very
product
probably
will
of
have
re¬
great
Two days ago at a press dem¬
onstration, General Sarnoff
showed
atomic
an
battery
in
of
the
future—our scientists have
already
tical
demonstrated
application
more
than
vices
in
a
of
the
prac¬
transistors
in
of familiar de¬
score
the
radio, television and
electronic fields.
'
Electronic research appears also
be
to
in
shaping
American
with
the
tronic
future revolution
a
business
methods
development
business
and
of
elec¬
calculating
machines. You have heard of
of these
others
some
devices, built by RCA and
for
the
government, for
and for laboratories.
research
ahead
way
today points
practical elec¬
to
known
would
make
it
electronics
will
operations
of
do
of
the
business
of¬
many
large
fices.
residential
television
is
yet
other field of untold
promise.
arT-
few
put
short
In
to
that
uses
constant
processes,
checking of bank
swift
blood
we
and
plications
largely
and
to
are
in
a
a
dangerous
the
counting
Its
uses
future,
continuing
today,
thanks
research
program that al¬
ready has reduced the
dustrial
of
fraction of its ap¬
the
engineering
rapid
records and the
accurate
corpuscles.
know,
of
the
television
and
cost
of
in¬
improved
area.
and
wholesale and miscellaneous.
The company serves an area of 5,600
population of 1,225,000 in south central Texas,
Houston and Galveston being the largest of the 145 communities
miles with
square
a
served.
The
principal activities within the service
the
are
of the company
area
production of magnesium,
sulphur, salt, gypsum, natural
gas and petroleum; the manufacture of oil tools, ships, steel and
steel products, cement,
paper, synthetic rubber, chemicals and
chemical products, petroleum products,
building materials, and
food products; the processing of manganese and
tin; and agricul¬
ture which
includes cotton, rice, a
variety of livestock feeds, and
cattle raising.
.
The company's residential rates
which
year
State
averaged 2.33d
substantially lower than the national
was
of Texas
providing for
is
considered
a
"fair
value"
kwh.' last
per
average.
State, the
The
State law
reasonable return but not to exceed 8%; however,
commission, regulation being in the hands of the
a
there is
municipalities. 'The Cities of Houston and Galveston have specified
This
power.
atomic
State
no
battery was devised by
physicists at the David Sarnoff
maximum
Research
The company's
Center
of
RCA,
at
Princeton, New Jersey.
In
its
present form the electrical energy
obtained is small but of sufficient
quantity
to
operate
transistor
a
audio oscillator.
•
is
process
still
neer
stage, and we
at this point all the
this
direct
in
the
to which
uses
conversion
pio¬
know
cannot
of
atomic
to electric energy may be
put.
But it holds out the prospect
of an
entirely different type of
power
source
be of major
that may
ultimately
of electronic
re¬
today, hitting only a few
the
high spots, are perhaps
of
indicate
to
that
there
is
present limit to electronic de¬
There is a vast
no
velopment.
of
human
range
activities,
industrial,
tional,
in
which
and will take
ing
commercial,
domestic
scale.
and
the
over
Our
recrea¬
electron
on
toward
progress
this goal is based
on
can
increas¬
an
continu¬
our
ing substantial investment in elec¬
tronic
research, I which
already
has
paid
over
in'the creation of
for
industry
to
of
itself
a
growing
individual
our
times
many
great
new
importance
and
national
well-being.
Francis I. duPont Co.
Opens Akron Branch
AKRON,
Pont
Ohio—Francis I. du¬
Co., member of the New
&
York
coast, and two abroad in
London
and
offices
have
World
of
residential
now
and
small
in effect
are
commercial customers,
below these maximums.
between the city and the company
regarding an extension (which
will be retroactive to Jan. 1). Since the former contract included
2%
a
gross revenue tax, together with certain free street lights
special rates for other service to the municipality, it appears
likely that the contract will be
effect receives
from
more
in addition to
the usual
renewed
amicably. The city in
that it pays for service—
the company
realty taxes.
Fifty-six per cent of revenues are obtained within the city
limits of Houston and 78% from the larger Houston
metropolitan
Other
area.
the
cities
benefits
same
the
in
the
as
company's
area
receive
proportionately
City of Houston receives under the
oper¬
ating agreement.
Industry in the area is well diversified, in¬
cluding about 20 kinds of manufacturing or production; no one
customer
its
accounts
for
more
than
usage, Which is somewhat higher
stimulated
The
by
rapid
company
serves
2%
of
installation
of
Residential
revenues.
thap the U. S.
average, is being
air-conditioning
321,000 homes of which
74,000
equipment.
have room-
coolers, and 3,300 central air-conditioning equipment; 27,000 roomwere sold last
year in the area, and that number should
be equalled or exceeded this year, it is estimated.
coolers
Air-conditioning is used to
some extent every month of the
the company's peak load is in August. Nevertheless, the
during 1953 was about 59%, which is only slightly
year, and
load
factor
below the national average; this result is obtained with the aid of
the large industrial load, some of which is on a 24-hour basis.
In the past (and
currently) the
had to buy
company has
but it has been
power,
at
an
average
able
to
obtain
cost of around 5 mills.
this from
In
1953
several
some
sources
the company had a
peak
demand of 856,000 kw. compared with 796,000 kw. rated
capacity and 836,000 kw. net effective capability.
As a result of
the projected construction
program the company expects to have
plant capacity of 1,327,000 kw. nameplate, or 1,418,000 kw.
capa¬
bility by 1956, compared with an estimated 1,110,000 kw. peak
load.
This will afford surplus
capacity of 20% based on nameplate,
or 28% based on
capability.
Capitalization on a pro forma basis, including the recent issue
of $30 million
mortgage bonds, is
as
follows:
Millions
Mortgage Bonds
Percentage
57%
5
Preferred Stock
Common
-
$110
___
Convertible Debentures
3
10
Stock
5
69
Equity
35
$194
The company's "Network of
Serv¬
ice" now numbers 32 offices
from
19
for
operating agreement with the City of Houston ex¬
pired at the end of last year, and negotiations are now in progress
Stock
Lausanne.
rates
company's rates
The company feels that it is not vulnerable to industrial "re¬
cession" at this time.
importance.
Tl^'ese glimpses
but the
and
energy
The
common
stock
is
100%
currently selling around 311/4 and
pays
$1.20 to
yield 3.8%. Share earnings in 1953 were $1.99 and the
budget estimate for 1954 is reported to be $2.40.
War II.
rugged
from
range
inspection
industrial
this
years,
$1 billion in the
over
virtually all from sale of electricity and are 36%
rural, 17% commercial, 36% industrial and 11%
are
which atomic energy is converted
coast to
Industrial
compared
at
Revenues
Exchange and other
sible to
develop electronic ma¬ principal security and commodity
chines that could do the
clerical, exchanges, has announced the
statistical, accounting and other opening of an office in Akron,
operations of a major Stock Ex¬ Ohio, in the First National Tower
change.
In the next few years Building.
Jack Karn is manager.
pos¬
(before de¬
million
directly into electric
tronic devices in standard business
now
exceeded $53
year
industry, which has invested
impact in the future of electron¬
ics.
last
and the management feels confident that growth will
the rate of 8% or more.
The growth of the area is
accounted for not only by the development of oil and
gas produc¬
tion, but also by the extraordinary expansion of the chemical
continue
greater
the
Revenues
v/ith $24 million in 1947 and $8 million in 1932. Growth in
output
over the last 20 years has been at an
average rate of about 12%
wide
a
electronic
new
for
company now has over $200 million invested in plant
preciation).
per annum,
be
of
Lighting & Power has had a remarkable growth
Starting with $2 million plant and equipment in 1915, the
record.
as
of
lead
Houston Lighting & Power Co.
Houston
tape
well
as
Ultimately,
enough
work-horse of television has been
assume
magnetic
black-and-white
of such pocket radios
may not be
far off.
This is only one aspect
exactly as they happen.
Color
brings reality to television.
safely
is
sight
recently by
receiving, stor¬
reproducing color and
and
many
By OWEN ELY
research
search
a
can
initial
demonstrated
grams.
corn-
a
television audiences of the future
We
of
as a means
standard port¬
able radio. Commercial production
of
be
sound,
The
engi¬
ceivers.
forerunner of many
events that will
tele¬
as
use, handling many tpes of infor¬
Day when NBC mation with
unprecedented speed
pickup in color of and
efficiency. Technical methods
broadcast
29,000
Telephone
Today it is the sub¬
RCA
universities
Pickup
was
Bell
electronics
Our
There
recording
RCA
their
of
end
ing
Utility Securities
to
phase.
phone circuits and hearing aids.
the
Pasadena, California.
•color
the
Continuing
A Forerunner
In
of
an¬
it is
will
fed to the NBC network
available
are
for
these
increase.
are
California,
equipped
With
number
steadily
equipped in New
of our West Coast
one
in
television.
&
the
Street
Broadway.
By the end of
we will have another
this
*so
television
the
was
ject of intensive research through¬
techniques of production.
Simultaneously with the develop¬
have
solids
Laboratories.
new
ment
by
principle
new
a
in
power
unknown
was
and power in such devices
studios,
studio
tube,
a
new
are
means
new
fraction of the
a
1948
pro¬
sets
grams to be seen. This
-and
while
industry and
already being used with con¬
siderable saving in weight, space
receiving
only be sold if there
in
nounced
out
Color
can
using only
lower
and
device
tube
vacuum
required by
xiew
better
tiny
a
performs many of the func¬
of
the
search
transistor,
tions
permitted, it would be
discuss many more
new,
ingenious and vitally im¬
portant electronic devices nearing
and living for all
•
The
Sound
and
expected
Research
staggering
of communications devices,
for example, a
receiving tube was
to RCA tube licensees, of¬
nearly double the picture
15-inch
its
research
week,
the
electronic
and
Im¬
color
of
Electronic
the industry is
proved color equipment will come
•continuously from our laborator¬
ies—last
as
But what about the other lines
V
ad¬
television.
color
in
vances
think
to
more
even
good
as
television, there were
many "prophets of doom" for this
industry.
Color television also
has its "prophets of doom."
black-and-white
•developed
is
and-white
speed with
television
amazing
the
While
How long will it
guess
Sight
possible
During the first two years
of commercial operation of black-
^black-and-white television.
which
Of
time
If
mine.
even
an
previous
today.
Your
Public
Magnetic Tape Recording
May
Expect in Electronics
Alfred
Rhett
partner,
Francis
been
said
I.
opened
duPont,
the
duPont
since
senior
a
expansion
&
Co.
is
of
con¬
tinuing evidence of its faith in
the future of the American
econ¬
omy—and demonstrates the suc¬
cess
of
its
research,
tributes
of
concept of
service which
a
more
research
Since
its
Francis I.
come
one
investment
than
now
dis¬
750,000 pieces
material
Reynolds,
partner
in
Stuyvesant F. Morris, Jr. & Co.,
New York
City, will withdraw
from
the
New
York
going
With French & Crawford
F.
investment
and
A.
to
M.
business
in
will
shortly be
Kidder & Co. as
manager of their Ft.
Myers, Flor¬
(Special to The Financial Chronicle)
ATLANTA,
Gaston, Jr. is
Crawford,
N.
W.
Ga.
—
Erskine
F.
now
with French &
Inc., 68
Spring Street,
Mr.
Gaston
with Pruett &
ida office, 915 First Street.
was
formerly
Company.
Co.
month.
in
has
1931,
of the
ice in every branch of the finan¬
cial
field, including investment
l
W. P. Ackerman Opens
be¬
country's leading
investment firms, rendering serv¬
banking.
A.
1
each
organization
duPont &
To Join A. M. Kidder Co.
With H. J. Lange
(Special to The Financial Chronicle)
SIDNEY, Neb. —W. P. Ackerman
is engaging in a securities
business from offices at 1010 Jack¬
son
Street.
Robert J. Ackerman is
associated with him.
1
Co.
(Special to The Financial Chronicle)
..
ST.
Brown
LOUIS,
has
Mo.
joined
—
Robert
B.
staff
of
the
H. J. Lange & Co., Inc., 314
Broadway.
.
-
North
Volume 179
Number 5304
Continued
from first
.
.
The Commercial and Financial Chronicle
.
(1019)
which
page
respectively,
are
1950
—
wear-out
6,166,000 sets; 1951—5,733,000 sets,
and
Major Component
Of Electronics Industry
what
on
talking
are
we
about
mention electronics, and,
we
you should know
something of the methods em¬
ployed. by the market research
people in the industry.
The electronics engineers them¬
selves are hard put to it to furnish
secondly, I think
There is very little
able
the
on
and
optimistic
population
lishment of
1954,
sale of 1,300,000 sets.
growth
and
homes
new
estab¬
this
year
past and
in the field
However,
an
schedules than if the population
production
and
num¬
referred to
as
Exhibit No.
ises
rest and the
sets
amusement devices.
4
outlines
which
on
these
the prem¬
predictions
probable demand for
during the next eight or 10
All of this material is re¬
years.
capped
Exhibit No. 5, showing
the value per unit,
on
obtained in the industry
ber of homes had remained static.
the
number,
during the latter part of 1952 and
The growth of the second-set idea
and
the
the first part of
might
tory door of these devices and the
that
data avail¬
commerce.-
obsolescence in
or
means a
inventory cor¬ proceeds as expected, this might
rection resulting from abnormally mean the sale of 600,000 more sets
of electronics manufacture for in¬
dustry
—
primarily
was
industry's
performance
present
If
1952
6,145,000 sets. What
happened to the industry in 1953
Television:
when
that
43
were
tories
which
scribed
much
field
1951,
the
late
.
heavy,
were
of
summer
they
situation
the
inven¬
.
than
lower
and
.
commonly de¬
far too top
as
during
because the industrial-commercial
1953.
were
1953
in
were
now
has
to
sales
a
the
mean
300,000' sets.
sale
of
another
These figures add
up
potential
of 2,100,000
Subtracting this from
the predicted figure of 5,000,000
sets, that leaves only a little less
than 3,000,000 sets to be marketed
sets in 1954.
sum
total dollar value
at fac¬
total of these dollars. As
pared
with
the
public
com¬
payments
for
personal consumption expen¬
ditures, the ratio of these amuse¬
devices
purchased to the
public's total consumption expen¬
ment
has developed so much less
been
corrected
almost
entirely.
rapidly than the amusement and
on an "initial sale" basis. That in¬
ditures is still far less than 1%
simple definition of electronics defense fields, the sales and pro¬ The probable inventory level, in¬
itial sale figure seems very low and as
you will observe, so pre¬
that will give the layman a com¬ duction totals do not constitute an cluding factory, distributor, and
to
me.
On the basis of today's dicted well into the
future.
This
plete understanding of what this important percentage of the grand dealer, as of Dec. 31 will be 1,900,radio homes, there are right now seems to be
one more indication
000 or less, and in my opinion this
field of electricity concerns. As a total, and,
therefore, the absence
about 16,000,000 homes without a of the conservative nature of these
director of sales research, an ana¬ of data does not seriously detract is not greatly in excess of what is
television set where good signal
predictions. Total television sets,
lyzer of market conditions, and a from predictions of the future of absolutely required to maintain now
is available or will be avail¬ for
the
example, at the factory level,
normal
movement
of
sets
statistician, I must confess I hard¬ the industry as a whole.
able by the end of 1954. Does this in
1953, exceeded $1,100,000,000. '
through the various channels of
ly know a volt from an ampere,
In considering the amusement,
mean
that we will sell less than 1953
was
the
biggest year yet "
distribution to the public.
and posibly
many
of you have national
one
in
defense, and industrialevery
five householders recorded in the industry and ap¬
We expect that some day there who
just
about
as
much
technical commercial
do not own sets? History says
aspects of electronics,
proximately 6,600,000 sets were
knowledge as I have. At any rate, we are thinking in terms of end will be just as great a percentage we will do a lot better than that.
sold to the public.
This year, as
let's try
of television homes as there are To illustrate
a
definition from the
my point, please re¬
products, which means that there
already noted, unit sales will fall
American
Standards
Association
radio
homes
today, and today view Exhibit No. 2, which demon¬ off a
are two corollary fields to be con¬
bit, but dollar sales will still
which
says
that
electronics
is sidered. One is the manufacture of there
are
43,100,000
radio
set strates that as of today there are be
substantially over the $1,000,"the branch of science and tech¬
homes in the United States. To still
the
electronic
17,400,000 homes to whom a 000,000
components from
mark.
Looking
farther
nology which relates to the con¬ which
set can be sold and by the end of
these
end
products
are study this (situation objectively, let
ahead to the three year period,
duction
of
electricity
through made. We can talk with confi¬ us look at Exhibit 1, $n which we 1954 there will still be 13,400,000
1957-59, we think annual sales
gases or in vacuo." This isn't a bad dence
about
two
of
the major have arbitrarily divided the such homes.
Therefore, I think may be nearly 6,900,000 units and
United States into groups which there will be a minimum of
definition, and it means that the groups of electronic
5,- that dollar volume will average
components—
word electronics is applied to a
radio receiving tubes and televi¬ are classified according to the na¬ 500,000 sets sold in 1954 and pos¬ higher than $2,000,000,000 a year fV
device or tube designed to make
ture and caliber of television re¬ sibly as many as 6,500,000 sets due
sion picture tubes—and
to color, and in the three-year
have a
use of electron emission, or to the
Group No. 1 are those sold. The average cost of a tele¬ period 1960-62, it is
somewhat less clear view of the ception.
entirely pos¬
equipment
that
sections
of
employs
these other
the
United
States vision set is $170 factory price. If sible that the annual unit
groups of components, such
average
we
sell a half-million more sets will hold firm at
components, or to the science that as
where
television
signals
came
crystals and special tubes. The
nearly 8,000,000
employs this equipment. What I other
early
and
television
saturation than some of our industry have sets and that dollar volume could
corollary consists of
the
am discussing today is the science
developments that have made elec¬ gained rapidly. Group No. 2 is predicted, that will mean an addi¬ increase to over $2,400,000,000 a
that employs radio receiving
except that the signals tional $85,000,000 to the industry; year because of the higher per¬
tronic end products possible, and similar
tubes,
special
electronic
tubes, our information here varies from came
later,
saturation
moved if we sell a million and a half centage of color.
more sets than
television picture tubes, and the
those predictions,
In other words, dollar volume
excellent to bad. For instance, we more slowly and, to conclude an
that will mean $255,000,000 more of television
so-called solid state crystal de¬
set1 sales seven or
obtained in 1953 new
have
an
excellent
idea
of
the analogy,
than anticipated to the
vices. In other words, we are talk¬
industry.
either
VHF
or
eight years hence, will be just
UHF,
number
of television and radio signals,
ing about such things as televi¬
As I mentioned previously, the about double what it is today. The
stations, the extent to which po¬ bringing their characteristics as
sion, radio, and radar, but not lice communication has been elec- far as television signals are con¬ prediction of our future market increase will, of course, be attrib¬
a
about
home
lighting
refrigerators
or
electric
or
cake mixers.
In
the
taxi
wave
going about the business of
a director of sales research,
I probably use exactly the same
,
tronified,
variety
number
radios,
specific
of
of
short
a
and
data
great
that
are
being
known
kind of props
munications Commission licensing
records are available. We have a
cial
that
analysts
do. Finan¬
you
couple
known
facts
and
figures from the past, current
conditions, and some crystal ball
gazing into the future to deter¬
mine
whether
worth
determine
to
certain
a
buying;
where
is
same
markets
our
weak, where they
are
stock
the
do
we
strong,
are
what sales methods should be
em¬
ployed, the best going rate of
pro¬
duction for the months
ahead, and
other points of information.
many
Much
of
plished
torical
,
accom¬
have
you
and
is
work
your
if
from
sources
reliable
which to draw his¬
facts.
current
In
because
.
Federal
Com¬
reasonable amount of information
concerning
ing
for
purchas¬
in the
government
national
defense
past and its plans for the future.
At the low end of
our
communica¬
tions line is information about de¬
velopments
that
would
help
to
approximating for television rests entirely on as¬ utable to a steadily increasing
will observe, sumptions which I believe are number of color sets. "While it is
probable that no more than 150,a small percent¬ very realistic regarding the incre¬
of the population of the ment of saturation, the impact of 000 color sets will be produced
cerned to the level
Group No. 1. As
this leaves only
age
United
States
you
still
to
receive
a
mal
wear-out
sets
in
sents the
trated
where signals will
made available during 195^—
be
areas
11.6%; Group No. 4 for
2.3%; thereby leaving us
No.
5, representing only
the
United
States
in
1955—
tremely
industry
fortunate
in
which
of
tele¬
a
in
trend
commercial
field.
the
industrial-
There
is
little
Having reviewed the nature and
tion
vision
will
signals, if they
during 1956
be
come
at all,
In
later.
or
the infinitesimal number of homes
in
quality of
ex¬
having
that
I
know
If
of.
your
tions
80
to
to
come
can
within at
of accuracy,
90%
least
and
pos¬
sibly better, by an
past
trends,
well
extension of
defined
by
RETMA, and by the application of
logic to known historical and cur¬
between
000,000
my
figures, unless, of course,
my arithmetic.
you
question
Entertainment
One
of
the
a
two
is
entertainment
Now lest
1
illustrate
basis
for
have been
fields
on
future
the
which
very
pro¬
saturations
calculated.
some
of you
Within the field of entertainment
am
ture in
face
of the
fact
that 49%
In other
the
and
set down by RETMA.
words, I am not a sooth¬
but I do draw certain con¬
sayer,
clusions
from
available
informa¬
tion.
In
discussing the various phases
of the electronics
touch
first
industry, I shall
the
on
entertainment
aspect, which includes radio
television.
In
this
and
field, there is
extremely reliable data available,
and plenty of information
con¬
cerning correlative facts, such
number
the
rate
of
of
wired
family
and
homes,
as
the
home
new
growth, saturation points, and
so
forth.
In the field of electronics
facture for national
is
good
data
available
analysts, but it is neither
nor
is
quently
it
made
as
manu¬
defense, there
available
to
as
as
the
fluid,
fre¬
that pertaining to the
amusement field.
color
sets
count
for
5,000,000 and 8,well into the pre¬
sold.
Add to this
per year
the way,
mar¬
in
and that in
As
the
1957-59
period,
1960-62, color will
nearly 80%
you
can
see.
ac¬
of all sets
color is
but it will be
some
on
time
for
television
future sales
jectives
industry,
are
such
as
far
exist
as
concerned, in ad¬
on
lation
how
was
an
all
sales
much
exceeding
three
as
only.
does
For
the
example,
automobile
time high on dealer pared with 6,600,000 sets
public with a volume the public in 1953.
approximating
by
biggest
6,600,000 sets
big margins
previous
and
the
years
radio
DETROIT EDISON
Look MeadJ
Our Annual
covers
Report to Stockholders for 1953
year in the Company's
eventful
an
history ... a year highlighted by planning
and building to keep well ahead of steadily
increasing electric power use in South¬
eastern Michigan.
In
1953,
started
we
two turbine-gen¬
Clair Power Plant,
up
erators at our new St.
adding 300,000 kw of power supply and
broke
ground for our sixth major
power plant, River Rouge, where the
world's largest steam turbine-gener¬
ators
will be installed.
the basis of initial instal¬
slow, weak, or
industry today rely on selling
sick.
Actually, the television in¬
autos to persons who have never
dustry is none of these. It is a
owned
a
car
before?
Not very
brisk, zestful, very young industry
much.
Initial
sales
rapidly are
that, believe me, over the next
losing their importance in the
decade will have more growth in
television
industry.
Assuming
it than
there has
been
growth
marked significance are some such
from the inception of television
factors as wear-out, obsolescence
to the present time. It is healthy
of sets, number of new homes, and
and sound. Furthermore, 1954 will
the coming era of second-set tele¬
be no exception.
vision homes just as today there
To illustrate this point, let us are homes with
anywhere from
put a microscope on the trade two to a half-dozen radio sets.
gossip about the state of the tele¬ Some people within the industry
vision industry during 1953. Con¬ have predicted 5,000,000 television
trary to popular opinion, that year sets will be sold in 1954, as com¬
sales to the
home
think that
completely bereft of reason
electronics. having painted such a bright pic¬
within the electronic industry to¬
day
to
conservative
jections
Major Field
major
years
faithfully
painstakingly
facts,
thing like 46% of the total will be
ket, the normal,
mand
for
of
the
country is already 85%
electronics, television is, of course,
saturated and another 36% satur¬
monumentally the largest factor.
ated to a degree of 40%, let me
A few of the gloomier economists
have described the condition of point out that industries seldom
rent
and indi¬
this year, it is expected that some¬
fringe territory. The bal¬
very
few
by the facts
and figures I shall recite later, let
me say now I believe our
predic¬
of
illus¬
me
dictable future.
the
credulity is strained
is
that the long term po¬
tential for television will certainly
-
reports
this
the healthy de¬ before color sets will be marketed
sets, auto in large quantities, and it will be
radio sets; it is apparent that we
at least four or five years, or even
data available on such things as other words, the country will be
have a very healthy industry in
the electronic computer business, virtually blanketed by good sig¬
Continued on page 44
tho^e fields which are commonly
nals come the end of 1954, and
developments in the application of
the entire country with a good
electronics to industry,
and the
signal by the end of 1955 except
like.
1
furnish
the
are
we
cates to
of
Exhibit No. 3
on
nor¬
obsolescence
or
All
use.
Group range
1.4%
our sources of informa¬
ance of the exhibit is self explan¬
predicting the future of
atory. It shows the percentage of
electronics, and before swinging
homes in each of these groups ac¬
Radio Electronics -T e 1 e v i s io n into the actual
predictions, I am
tually owning sets at the end of
Manufacturers Association, known
assuming that you will accept the
the years listed and projections
as
RETMA, which compiles the underlying premises for these pre¬
have been made through the next
most exact and reliable industry dictions
and, therefore, will accept
electronics
the second-set home and the
signal, and of that small remain¬
ing balance, Group No. 3 repre¬
sold
to
completed two international
transmission lines to Canada for in¬
We also
terchange of electric power with
Ontario Hydro; we moved forward
with atomic energy research to
be
great
time when
new
power
re¬
be
utilized
by
can
source
the
for
ready
this
I,
11
the electric
industry.
To
more,
learn
send
for
this report.
Write our Treas¬
urer, 2000 Second Avenue,
Detroit 26, Michigan.
THE
DETROIT
EDISON
COMPANY
Let's analyze that 5,000,000 fig¬
ure.
use
If
only 5% of the sets now in
replaced for reasons of
are
68 TH
YEAR
OF
ELECTRIC
SERVICE
IN
THE
DETROIT
AREA
„
44
The Commercial and Financial Chronicle
(1020)
Continued from page
ahead
4%
for
ment
Television: Major Component
Of Electronics Industry
catch up
crowded
television
Has
radio off the map?
Hardly
the
Predicting
for
home
these
ture
The
so.
the picture
and
ket
before color sets
sales
with black and white.
tubes
be done with
can
the
fu¬
able degree of certainty. The one
radios last year for a total volume
sure
©f about $113,000,000, and
of
pected another 6,000,000 sets, at a
total close to $100,000,000, will be
tsold in 1954.
that
thing in calculating this sort
projection,
the
easily
pre¬
dictable rate at which these
ex¬
wear
and
out
Market surveys show
be
must
has
owner
is
replaced
if
the
to
keep this set in re¬
The tube business which
people than ever before pair.
ere
listening to radio and that in the last few years prior to
•during the daylight hours, when World War II was running along
the housewife can't stay in one at an annual rate of $10,000,000
per year, has
al¬
room, the radio is turned on more to $12,000,000
a
business
frequently than the television set. ready expanded to
more
"Will
this
apply when the
ownership becomes
vision
universal?
which in 1953 exceeded $150,000,-
tele¬
000, and which is expected within
more
the
in
sale
ceed
sale
of
the
six
to
years
ex¬
next
eight or nine years.
Similar assumptions can be made
regarding the
determinants for
tubes to be used in initial equip¬
1960-62
entertainment
or
$400,000,000, and may very
exceed
$600,000,000 within
well
period
"will be in the neighborhood of
€.500,000 sets, at a total of nearly
$138,000,000.
The
five
another
It seems indicated that
•over
the 1957-59 period, nearly
7,800,000 radio sets, grossing over
$126,000,000, will be sold each
;year, and that the average home
radio
..
.
in
and
ment
The
the
total
market.
export
tube
business, ex¬
port
plus
renewal,
which
ran
about $30,000,000 per year prior to
World War II and equalled in 1953
.
ra¬
dios for automobiles will be linked
closely, of course, to the rate
«f automobile production. It does
-very
.
volume of
a
i
.
tainly
$575,000,000, will
cer¬
exceed
certainty that virtually
every pleasure car will be equip¬
ped with an entertainment radio.
$1,000,000,000
by
1957-59 and may very well hit a
peak of $1,500,000,000 by 1962. The
Our researchers show that 5,200,€00 auto sets, totaling $150,000,000,
last
seem
were
a
which
level
4,100,000
aggregating $123,000,000
will be sold this year.
Auto set
in
the
1957-59
and
I
Homes
the
in
totals
500,000,000 in end products for
en¬
tertainment
and
this
last
purposes
1
year,
is expected
year
$1,400,000,000.
over
.
.
.
to
But
sell
look
J
!.: i'
:i.Ji
Sets
Saturation
%
Group
Group
II
III
IV
V
Total
35.8%
48.9%
11.6%
2.3%
47.1%
7.1%
14.0%
of the greatest weapons
of
electronics
comprise
6%
Much
electronics
for
national
be
195
The
every
day
about
the
1960-62
electronics
part
We
and
fires
the
bombardment
anti-aircraft
but
plane
be
tronics
purchases
equipment
last
go
$2,900,000,000 in 1954.
But
as
about
are
in offices, lab¬
factories as they
day. Television will
used
for
ranges
process
will
make
the
foolproof.
000,000
in
figures
are
1960-62.
is quite possible
future
data
When
that government
all
of
the
electronic
the
on
which
is
size
is
lumped together, it shows that the
this
of
reliable
newal
tube
market
above.
ca¬
as
market
The figures
the
as
re¬
mentioned
quoted, how¬
reasonably accurate and
by known ratios of
consumption
by
the
repairman
ever, are
are
arrived at
for
the
of
use
these
ponents related
ceiving
is
tubes
other
his
to
and
com¬
of
use
picture
re¬
tubes.
estimated
that
repair
this
will
fall
parts
far
short of $850,000,000, while in the
year
not
1957-59 period the annual average
be in the neighborhood of
will
$1,400,000,000.
parts sales
are
$2,200,000,000,
over
In 1960-62, repair
expected to exceed
an
increase of 220%
the recent going rate.
To round out the
foregoing
for
components
as
electronic equipment.
picture of the
electronics industry, we must
sider the
con¬
broadcasting end of the
EXHIBIT 4
Determinants—Home and Auto
(000,000
Sets
omitted)
-Home Sets-
-Auto Sets-
*
Auto
Hshlds.
R.H./
EOY
_________
1.941
35.4
Sets in
Hshld.
81.7%
Sets/R.H.
Use EOY
Sales to
Repl. Rate Public
42.6
36.0
43.8
Auto Sales
Sets/
Auto Set
Cars
Repl. Rate
Regis. Reg/Hshld. To Pub.
Sis to Pub
Cars
4.0
85.0
85.0
2.1
11.1
50.6
37.3
1943
84.0
85.0
36.9
_
Auto
9.7
36.5
____
___
2.6
23.0
76.7%
A
1.4%
100.0%
1.5%
26.2%
1944
v,
2.5%
38.7%
1945
________
37.9
38.9
83.0
1.55
12.4
28.2
72.6
2.0
__
40.7
89.8
1.31
j 66.0
8
17.1
30.8
75.9
3.3
2.4
97.3
3.5
41.4
91.7
1.93
73.4
8
12.6
33.4
80.5
3.7
3.8
103.4
4.2
42.2
74.9
8
7.2
36.5
85.3
50
5.6
70.1
3.6
1946
1947
92%
59%
37%
13%
11%
71%
1943
%
1949
1
.
23%
52%
79%
14%
__—_)
95%
These
only estimates, and it
and more end
placed in use.
I
are
pacitors, transformers,
resistors,
dials, knobs, etc. Un¬
fortunately, there is no available
It
airport operations virtually
Elevators, even in the
big office building, will perform
the
last year (see
will continue
speakers,
sales
Electronic equipment will
make
as
and
repair include such things
yet
and
some
the
would like to point out that these
the
not
in
more
grow
products
brakes.
another notch to
up
6)
virtually an auto¬
matic one. | A sort of radar system
may control auto headlights and
are
$600,000,000
to
a
currency
be
cooking
estimated at $2,800,000,000 and the
total may
to
ed
Exhibit No.
seven-year
read
computors
kitchen
elec¬
year
That is
quality control and
safety in the factory, and in the
contains
of
field
home will watch the nursery and
the
kitchen stove.
Electronified
host of functions.
a
Defense
those
will
thousands of electronic tubes that
perform
a
business
sizable
a
other
oratories,
guns
military
350% in
have
all
common
and
that formerly
were trained by calculation or
by
eye and were fired manually.
An
average
$945,000,000.
44%
69%
86%
95%
24%
89%
72%
99%
95%
97%
90%
77%
52 %
.
98%
54%
67%
100%
90%
74%
99%
100%
97%
50.5
26.0
50.2
85.0
70.5
25.6
""".5
50.2
5J.0
19%
68.5
25.8
63.0
—
74.7%
%
1.6
92.8
1.91
43.0
94.0
1.94
78.3
8
9.2
40.3
93.8
6.5
7.2
71.0
4.7
44.1
94.0
1.94
80.3
8
8.0
1952
42.7
96.9
5.1
6.8
85.1
4.5
45.1
94.0
1.94
82.3
7
1953
7.7
43.8
97.1
4.3
.7.3
74.8
3.2
46.0*
93.7*
1.94*
83.6*
7*
7.0*
45.0*
97.9*
6.0*
86*
5.2*
46.3
93.8%
1.94
85.0
7%
7.0
45.6
93%
5.5
10.9%
91%
6%
6.0
45.6
97.5%
5.0
9.8%
82%
4.1
8.2
46.8
98%
5.7
10%
91%
5.2
,_
1950
________
10.9
f
1
1954
Range—
High
Low
,
Radio Homes
on
•♦Based
on
Radio Homes
in
1950 Census
of
as
Jan.
1,
5.0
Status
of TV
(000
Ownership
omitted)
TV Homes
Non-Owners
%
Radio
Radio
during year
E.O.Y.
Homes E.O.Y.
Homes
Homes
I
15,655
2,405
18.060
3.020
21.030
43.9%
II
Group
3,680
2,450
6,130
9,300
15,430
860
470
1,333
3,370
5,000
87.1
6.5%
7.6
46.3
97%
4.6
8.3%
82%
3.3
94.4%
1.93
93.7
8.8%
9.6
49.7
99%
5.3
10%
91%
5.3
48.9
94.2%
1.94
89.4
7.5%
7.7
47.4
97%
52.0
94.4%
2.00
98.2
10%
11.4
52.0
100%
6.1
50.8
94.3%
1.94
92.9
8%
8.4
49.3
97%
4.6
7.2%
High
______
Low
4.4
■
8.3%
82%
3.6
10%
91%
5.5
8.3%
/
82%
3.3
80
55
135
855
990
25
20
45
555
600
1.4
20,300
5.400
25.700
17,400
43,100
100.0
I
13,060
1,300
19,360
2.110
21.470
43.9%
H
6,130
2,930
9,060
6,bb0
15.720
35.8
III
1,330
500
1,830
3,260
5,090
11.6
EXHIBIT
2.3
V
'Preliminary.
11.6
IV
Total
Group
1.94
50.2
87.1
35.8
III
1954
94.1%
1.94
1960-62 Range-
B.O.Y.
1953
47.7
35.0
1957-59 Range-
Total
TV Homes
94.1%
Low
2
New
TV Homes
47.7
1.94
.
1955
1954.
EXHIBIT
93.8%
High
of Housing.
46.8
Range—
High
Low
♦Based
5
Home, Auto and TV Sets
(000,000
omitttd)
Units*
Auto
Home Sets
1940
Sets
9.7
TV
-Value per Unit**
—
Sets
2.1
Home Sets Auto Sets
$14.70
-Dollars-
TV Sets
$16.00
Home Sets
I
Auto Sets
Pers. Cons,
TV Sets
Total
Exp.
$143
$34
$177
$72,100
Tot. Dollars
/P.C.E.
.25%.
IV
1-5
45
180
830
1,010
2.3
1941
n.i
2.6
V
Total
45
25
540
610
1.4
17.35
16.40
191
70
43
234
82,300
.28
1942
4.0
4
24.40
15.80
97
6
103
91.200
.11
1945
.5
"I
1946
12.4
1.6
25,700
4,800
30,503
13,400
100.0
43,900
1943
102,200
1944
EXHIBIT
3
Determinants—Television
(000,000
Sets/
TV Homes
1946
:
_
omitted
Sets in
Replacement
Rate
1
3.6'
9.6
10.0%
6.8
4.6
2.7
3.5
6.1
1.01
26.0*
1.03
31.5
1955
Range—High
Low
1957-59 Range—High
Low_
1960-62
Fange—High
Low
•Preliminary.
4.5*
4%
.26
.1
34.00
30.40
$288.00
581
106
$29
716
165,600
.43
4.2
.9
31.40
31.60
233.00
396
133
210
739
177,900
.42
3.6
.
2.7
25.00
29.70
190.00
180
107
513
800
180,600
.44
6.2
24.00
25,90
182.00
221
122
1128
1471
194,600
.76
5.7
22.90
23.40
178.00
133
123
1015
1326
208,100
.64
93
1049
1296
218.100
.59
1129t
1393+
229,900*
.61
,___
6.6*
6.5
1.01
30.8
2.7%
1.05
37.4
4.5%
7.3
1.015
36.1
3%
6.2
1.13
50.8
9%
6.9
1.04
43.2
6%
£.3
5.5
1.20
£8.0
10%
8.1
1.085
50.2
7%
7.7
6.1
20.00
29.00
172.00
16.2f
6.6t
16.201
30.00f
171.00t
5.0
6.5)
4.1
5.5 jf
154
,113+
156+
Range—
7.0
6.0
1955
-
3.2
7.of
____
Low
5.7
5.6
_
146,900
3.5
,
4.7
High
6.2
15.0
20.3
_
383
4.5
1953
1
Low
43
9.2
1954
1
-
340
8.0
.9
1„51
Range—High
26.70
1951
.1
.15
1952
1953
7.2
1952
1.0
1
12.6
111,600
123,100
27.40
1950
Sales to Public
1
1
1950
use
EOY
17.1
1949
1
„
1947
1^48
1948
1949
Sets
i
1947
1954
its
of
receiving
tubes,
television picture
tubes, special
electronic tubes, and other com¬
ponents for repair which amount¬
wizardry of the electronic computors that have been introduced,
damage is an electronic
Radar tracks the target
weapon.
mains
period.
The guided
electronic weapon.
an
at
over
increased
production
the
at
have
products
manufactured
in
the
electronics industry, there still re¬
approxi¬
$520,000,000, and by
of
the electronics
or so,
will
product sales by nearly 55%.
After
considering
all
the
end
now
commercial
-
running
rate
gain of
proximity fuse that explodes
cause
be
new
of
is
industrial
mate
over
end
estimated
an
years
industry
But, by 1957anticipate annual sales in
we
will
when it is close enough to a plane
to
54.0%
Low
59,
the
of
Yet
seven
$274,000,000 in 1954.
work
because
and
that by 1960-62, elec¬
products totaling
$7,000,000,000 will be sold each
That
means
that
within
instance, about $267,000,000
1953
or
year.
The
uses.
not too impressive
of sales in
playing in defense.
missile
59.6%
Low
—for
defense
the papers
in
examples
is
discussed
reasons.
read
we
4.6%
72%
tronic end
That is the field of elec¬
are
the
years
over
of 26%, and
barely has
equipment for industry,
and other non-enter¬
figures
government
the
security
7.7%
1960-62 Range—High
all
of
of
not
may
9.3%
100%
surface
tainment, non-military
equipment
done
being
13.7%
1957-59 Range—High
the
commerce,
pur¬
expenditures; within the dec¬
ade this proportion may increase
to 10% or higher.
19.7%
96%
tronics
war
26.7%
)
Low
volume.
Electronics has be¬
Today, government
war.
chases
27.3%
1\
Range—High
which
three
the 1957-59 period, we
expect the end product total to
exceed $5,800,000,000, an increase
so,
been
electronics
come one
of
39.7%
J
Low
there
in
great fu¬
a
approximately
another
In
same.
potential,
production
and
already are, immense. But
is one phase of electronics
by sales
sales
<
armed forces.
85.1%
Range—High
enter¬
our
product
mili¬
scratched, where most of the
industry is the
United States Government, and an the development work lies ahead,
and which some day will compare
overwhelmingly large percentage
of government purchases is for the favorably with the others in dollar
85.7%
;
end
tary electronics offer
ture
and
4.7%
10.5%
1953**
will increase
entertainment
be
will
gate
While
2.4%
5.0%
66.1%
1952*
war.
in
$2,400,000,000
over
60%.
the
1942
lo¬
group*__
will in¬
$2,200,000,000
By far the largest customer of
1~40
Group
.
1951*
1955
impressive.
are
$1,-
1950*
1954
between
a
Group
Group
Radio
at
These
Television
of
of
The electronics industry sold
EXHIBIT
cated
of sales
purchases could double over the sale of all electronic end products
This, of course, is based in 1953 totaled nearly $4,600,000,on the assumption of no
shooting 000 and that this year the aggre¬
decade.
Army, Navy and Air Force be¬
and
$130,000,000
a
come
increasingly
electronified, automatically. These are a few of
minimum, over the next
decade. In fact, I have heard the we foresee government purchases the hundreds of reasons
why we
high fidelity market alone de¬ in the vicinity of
$3,100,000,000 a can say there is no ceiling on the
scribed as potentially a $200,000,year in 1957-59, and about $3,800,- potential of industrial-commercial
000 business.
industry data op
at least two of the very important
components going into these elec¬
tronic devices. I am referring, of
course, to the receiving tube mar¬
%
phonographs,
a
fairly
maintain
volume
year,
excellent
Cumulative
should
de¬
$120,000,000
1960-62
periods should average from 3,600,000 to 3,800,000 a year, at a
dollar
volume
running between
$108,000,000 and $114,000,000.
As pointed out previously, we
have
entertainment
vices is records and
sold in 1953 and that another
sales
in
factor
believe
we
over
tainment
manufacturers sold 7,000,000 home
it is
to
years we
consider¬
a
The
years.
in 1960-62. In approximately seven
market
into
well
few
a
1957-59 and to
tube market.
renewal
devices
crease
over
longer,
just
annual sale of entertain¬
average
Thursday, March 4, 1954
..
.
$16.20
$30.00
8.2
5.2
7.3)
Low
7.6
3.8
6.2 j"
$16.20
$30.00
$150
$1274
$1537)
97
123
1078
1293)'
$133
$156
$1383
$2172f
123
114
1600
$156
$159
$2493
$2813
$240,000
125
108
1919
2152
210,000
$185
$165
$2470
$2820
$245,000
136
114
1647
1897
190.000
High
9.6
5.3
6.9
Low
7.7
3.6
5
3}
11.4
5.5
8.1)
8.4
(B&W $171)
(Color 750)
$16.20
$30.00
(B&W $171)
(Color 500)
3.8
5.4f
$16.20
$30.00
(B&W $171)
(Color 350)
(Avg. 305)
to
.66%
.56
$237,400
.91%
.77
1837)
1.17%
1.02
(Avg. 362)
5.4
♦Sales
$232,000
(Avg. 253)
1960-62 Range—
Low
$113
(Color 1000)
i
1957-59 Range—
High
(B&W $171)
(Avg. 196i
Range—
High
Public.
♦♦At
Manufacturer's
Level.
tPreliminary.
1.15%
1.00
Volume 179
Number 5304
'<
The Commercial and. Financial Chronicle
...
I!'
i
f'f
I
<
if
■It
)
(1021)
*•
business from"the
view will exceed that < figure^' In" 195759, total sales will come close to
broadcasting revenues in 1953, to¬ $11,000,000,000
a
year,
and
by
gether with revenues from radio .1962, we will be justified in call¬
telegraph and commercial cables, ing electronics over a $13,300,000,of
amounted
point Of
Television and radio
revenues.
about
to
000
$1,285,000,000,
should increase to nearly $1,-
and
400,000,000
these
in
around
should
nually.
It
into
or
more
a
1960-62
over
•.
-
of
the total
$1,800,000,000 an¬
by
be
average
unheard
the
sale
of
end
channels of
the elec¬
virtually
created
Edward
and
Treasurer.
war
national
defense,.
Today, electronics is an $8,000,No. 6 shows these revenues are 000,000 industry.
We have very
expected to approximate $1,400,- good reason for believing that in
000,000 in 1954 and should in-, another six or seven years it will
crease gradually to well above $2,be more than half again as big. It
500,000,000 by 1960-62. Thus we is extremely difficult to envision
see
that from the standpoint of
any other major industry that will
sales, the electronics industry was
virtually an $8,000,000 000 indus¬ grow that fast between now and
try in 1953 and that this year it 1960.
\V %'V
District
Committee
Industry
nounced
h
ava n n a
Chairman
Revenues
$1338
SNA
D.st. Chann.
$462
Total
»
$332
SNA
1950
_
: ' —1
1951
1952
-
244
858
611
.2903
4445
1463
ma
the
1355
5128
1343
6567
7940 s
Range—
Oi-^i
High
$1545
$8585
1373
1353
8139
$1047
$1510
$2080
$10229
has
been
1017
1503
1884
9660
the
Investment
1957-59
.
Association
the
the
For
since
two years he
past
Assistant
$1642
$1500
$2764
1497
2157
The
the
Reserve
of
the
$7694
$2663
$1830
$3116
2230
1823
2441
today, it was decided to*
Meeting which was fixed
7
pence
in
order
In
of
the
first
the
the
authorized
passed
the
March Issue of "The
office
for
Bearer
prices affords
credit to
no
OF
total
to
consolidated
transferring
Reserve
stocks
profits,
Fixed
to
the
of
balance
dollar
the
•
following
transfer
before
&
Asset
of
the
stroyed,
to
potatoes
cotton
or
and
under,
caused little
never
it
if
pigs
be
de¬
be plowed
were not
now
order
to
large
support prices,
could
ple
the higher price.
peo¬
our
their
accuse
South
leaf,
Stock
amounting
issue
"The
of
Guaranty
by the Guaranty
Trust Co. of New York.
process make a fundamental mis¬
take," in the view of "The Guar¬
anty Survey."
"Any change in
had
ments
coffee
embarked
never
'valorization'
into
schemes
the
govern¬
ocean,
upon
dumped
or
if
and
ex¬
change rates were not at artificial
levels,
people of the
the
would
States
evidence
see
less
be
of
United
to
prone
price manipula¬
tion where none exists."
discussion
its
In
of
that
tions
coffee
prices in relation to free markets,
the
bank
publication explained
that all
price fluctuations involve
must be
Whoever bears
such a risk is a speculator in the
literal meaning of the word. Price
borne by someone.
risks may be borne by producers,
they
may
distributors,
and
processors
be
in
The
it.
sooner
the
more
correction begins.
foresee coming price
occurs,
the
who
and translate them into
price changes perform
changes
immediate
valuable economic service. Their
stability,
operations promote
instability.
not
largely
from
excesses,
ket
bearer does
a
usual
have
tions.
look
profit and avoid
and
changes
in
they
than
common
partly be¬
extremely risky to
supposed,
are
the
perpetrator and partly because
most
reputable
organized
ex¬
changes have
safeguards
adopted
United
a
tries to gauge
these
condi¬
natural
higher
prices,
tendency is to buy
his
more
freely in the hope of selling later
at
a
more
market
favorable price.
operations
do
not
■i
These
cause
30th
ending
also be
payable
1952
surplus
£
National
the
on
September next will
the 31st March 1954.
The 55 members of the Hadyen,
dinner
at
the
firm
their
Antlers the
30th
orchids; the
Inations.
the
of
wore
white
members
gold
car-
receiving
watches, pre¬
by H. G. Bell
for, the firm
were—Mary Bitar, John Callahan,
meeting to be
must
bers.
made
A
and
club
mem¬
recording of activities was
by
color
film.
dinner, the following
Before
new
held
on
the 7t!
or
on
deposit Coupon No. 220 with the
32, Lombard Street, London, E. C. 3, five
business
clear
(excluding
days
day) before payment
DATED the 24th
BY
can
Satur¬
be made.
February, 1954.
ORDER
OF
D.
Interim
1/-
the
officers
12,803,834
1
2,956,000
2,795,403*
£20,147,000
'
£18,606,52>
Subsidiaries
1952
1953
1952
ac¬
Subsidi¬
5,582,845
5,269,511
14,564,000
13,337,012^
550,000
Fixed
to
800,000
1,800,000
4,500,003-
£4,469,511
£12,764,000
Asset
Reserves
£8,837,0I.*S
Company
are
follows:—
as
£
Dividends
dividend
1,187,888
1,185,772
2,375,776/
,
2,078,804
1,484,86 »■
proposed
225,000
Proposed
General
to
307,125
Stock)
£1
per
Z
paid—
Stock paid 31/3/53.;
10/- Stock paid 30/9/53
(1952—2/-
1952
318,187
Reserve
NIL
balance
Increase in
forward
carried
37,194
301,75 »
making, with the balance brought forward, less £2,163,-
J>26 (1952—NIL) appropriated to capital
£2,249,833
£4,375,665
transfers to Fixed Asset
& Stock Replacement
Reserves, incfudingDevaluation
Surplus,
represent
an
estimate
of
the amounts
which,*
regard, to changes in the general level of prices should, in the opinion
Directors, be retained out of profits towards maintaining over the yea>The
7.
the
Leaf
having
of
the
that
the
the
for
There
8.
the
each
of
Transfers
by
Group represented I»y
Subsidiaries
have
beet
the rates of exchange applicable*
of the current assets
changes over the year in
sterling for consolidation
to
of
the
certain
been
have
in
company
made
of Consolidation.
purpose
conversion
liabilities
and
capital
real
Stocks.
and
assets
adjusted
to
of
part
fixed
of
certain
the
purposes
Subsidiaries.
overseas
The
Holding
Company's-
£4,326,000 has beer*
in the Con¬
solidated
Balance Sheet
with "Other Capital Reserves".
The balance remaining
on
Devaluation
Reserve
is £6,704,000.
In prior years, similar differences werccharged
against
Consolidated
Trading Profits.
In 1952,
the difference was
negligible.
proportion of the net resulting difference on exchange of
charged against Devaluation Reserve, which was previously
to
the
At
March
received
order
in
be
will
next
at
time
in
Meeting
dividend due
on
it
was
the 5%
also decided to pay, on thePreference Stock amounting
Stock, less United Kingdcm Income Taxregistered office of the Company up to 1st
passed for payment of this dividend to the*
Preference
6d.
Transfers
Board
above-mentioned
March, the half-yearly
for each £1
unit of
included
to
the
be
transferee.
Stockholders
of Article XIII
Treaty
Section
Internal
£1
unit
(1) of the Double
in
order
between
the
Unite
Kingdom, to
131
Revenue
of the
Code
a
be
have also decided
registered
the
at
to
be
passed
tax
to
pay,
on
the 30th
April next, the half-
Preference Stock amounting to 7.2d. for eacn
United Kingdom Income Tax. Transfers receive-I
office of the Company up to the 6th April next wi L
6%
the
on
Preference Stock,
of
time
in
due
dividend
yearly
be entitled by
may
Directors
The
10.
.' /
who
States and the United
under
Holding
(net)
£1
per
31st
House,
London, S. W. 1.
Taxation
the
Ordinary
9.
1
7, Millbank,
virtue
by
dividends
per
4d.
BOARD
THE
McCORMICK,
Secretary.
States
was en¬
12,752,000
__
8,025,64(T
seven
after the 31st Ma)
holders of Ordinary Stock Warrant}
next)
credit
guests
of
being sanctioned at the Annua
same
quist. A pleasant evening
by
1953
(free of United Kingdom Income Tax)
To obtain this dividend
(subject tc
Winifred Michel and Clara Nord-
joyed
the
on
with
ladies
1,047,243
42,231,431
1953
for each 10/- of Ordinary Stoci
pence
Members of
the
men
New
award
sented
September
A.
favored
payment,
final dividend or.
issued Ordinary Stock for the yea:
a
guests and Robert
were
£
t
Guaranty Trust Company of New York
Admits New Members
held
the
1954, of
May
ended
the
_
profits...
below)
Appropriations
days
recommended
have
Directors
Stockholders
next
Hayden-Stone 25-Yr. Club
Club
in
Net Profit.
from
Replacement
note
Preference
Limited
Bank
Provincial
for examination five clear business
31st
598,000
£5,032,845
(See
Savoy Court, Strand, London, W. C. 2
May
25-Year
'
.
interests
of
Coupon No. 101 must be deposited with
General
against them."
annual
If he believes that the out¬
indicates
September
.
on
year
is
less
been
to
what he
dividend
half-yearly
the 5% Preference Stock (less
Kingdom Income Tax) for the
2l/z%
the
sometimes
Stone
studies underlying mar¬
conditions
coming
.
made.
Westminster
earn
future*
~
Holding Company.
Transfer
Stock
&
(excluding Saturday) before
days
the
to
LESS:
examination five clear busi¬
payment is
the
Stone
He
C^;
ol
Lombard Street, London,
York, 32
The
Company
Trust
Guaranty
E. C. 3, for
have all branches of
However, such abuses
as
business.
.
Shareholders'
dividends
count
aries
The
such risks.
to
for
6,442,000
Apportioned, after taking into
have at times suffered abuses and
the
loss.
Reserve
Tobacco Co. Ltd.
Transfer
who make it their business to take
can
pro*-
Replace¬
1953
(excluding Saturday) before payment it
evening of Feb. 24.
risk
the
audit, contransfer ft*
British-American
made.
professional dealers' (speculators)
"The
of
announcement
will
'
30tii
speculative markets
"Of course,
or
shifted
ending
year
Final
risks
these
and
risks,
caused
change
Those
evil
see
to correct the condi¬
price tends
cause
the
the
ness
a
American
South
"If
dividend
but
to
of fivepence for
1954
Holders of Bearer Stock, to obtain this
New
promptly
March
Company op
this intern*
of
deducted:—
leaving Balance of Group
dividend, must deposit Coupon No. 21£
with
the
Survey," issued
the
the
!
taxation
taxation
Outside
the 31st March 1954.
this
who
"Those
American
and
cause
it.
ing
neighbors of price-rais¬
practices with less absurdity
better grace," observes the
They merely re¬
flect the conditions that do
to
quantities of
farm products from the market in
withholding
respect,
;
thereto
taxation,
devaluation
each
10/- of Ordinary Stock (free of Unitei
Kingdom Income Tax) will be payable
on
Govern¬
the
for
September
until recently, followed a policy of political
controls and price supports.
States
Stock
be
must
Kingdom
Overseas
the Ordi¬
on
which
United
PREFERENCE
AND
ORDINARY
from
HOLDERS
STOCK WARRANTS TO BEARER.
nary
people
a
whose government,
killed,
of
payment
Warrants
operations for the year, subject to
the nearest £1,000.
The proposed
to
220.
in
of
42,297,000
LIMITED
The first interim dividend
Guaranty Survey" also points out the
reaction to the rise in coffee
be
No.
dividend
1953/1954.
year
of
Coupon
Ordinary Stock (freeStock, payable on thedividend
is
designed
to
even*
Coupon No. 219.
given
at
Ordinary
registered
be
case
of
interim
10/-
per
interim
of
at
deposit
a
issued
first
respect
in
the
pence
the
on
additional
is
NOTICE
COMPANY
TOBACCO
Coffee Price Fluctuations Test of Free Markets!
to
final dividend
a
Ordinary Stock'
Ord.nary Stock*
1953
The
NOTICE OF DIVIDENDS TO
ment had
of
of
£1
per
Years to 30th
on
■^Preliminary.
United
10/-
per
BRITISH-AMERICAN
the
figures
13265
Low
"If
marfj-
interim
May next of
Com¬
$15303
6771
High
the
were
first
provisional
surplus, amounting to £275,000,. which resulted from the reduction!
rate
of United Kingdom Income Tax effective
from April 1953-
after
DIVIDEND
31st
declare
of 5
1954
Group's
being
ment
5855
dividend
of
to 3rd May next will be in time to bo
the
transferee.
In
the
case
of
Beareir
against
to
increased
have
the
of
standard
paid
Tax)
deposit
Directors
figures
tayation
10982
1
Low
1960-62 Range-
the*
confirmed, transfers received in order
be in time to
the
results
General
in
This
is
to
transferee.
against
6.
held
General
on
<1952—l/3d.
up
Income
next
the
dividend
be
received
paid
Directors
Tax)
decided
Transfers
solidated
$12462
1433
$6556
linal
relevant
of
Secretary
Companies
mittee of the NASD.
Range—
High
the
Annual
dividend
will
also
payments
visional
/$1380
•
be
the
the
Company
September,
next.
jSt ,^arck
to
Committee
a
5256
/
Tennessee.
District
£21
1950.
,
and
30th
the
the
dividend
5.
of
at
Income
the
of
Kingdom
March
Dorgen
j.
•
$5591
—
Low
se
of
dividend
to
year
the
office
Directors
dividend
$829
by
United
out
,
45^2
1955 Range—
before
year
year is normally
henceforth be more
would
declaration
announce
September, 1953, of
of
payment
the
the
Meeting
a
Kingdom
payment
The
of
31 st
graduate of New
University, has been em¬
York
for
of
Bergen,
ployed
it
the
o*
the
figures make it impos¬
previous
Ordinary Stock.
the
registered
4.
$481)1
High
Low
that
respect
with
to
the
of the ensuing
respect
May next, the payment
ended 30th
issued
Warrants
is in Atlanta.
1433s
Mr.
time
Stockholders
the 7th
United
If
at
the
to
on
year
of
passed
the
of
Office
1285s
in
concurrently
same
of
respect
in
audit.
held
3.
Carolina
743
433
631"
in
have, however, decided
recommenoaticn
the
to
the
on
the
of
South
tneir
Accordingly
the
,
of
854
335
3937
4591*
.
495
178
2695
—
1953
1954
1372
2127
:
be
toi
District
a
dividend
Directors
it
recommend
dree
9
b
figures
interim
—n" nt0 and at
SJtockho,Iders
to
Commit¬
a
n
audited
first
the
The
appropr.ate
2.
Lane, Space
&
Co., In c.,
the
declared.
audited consolidation
such
announce
which
on
subject
Space,
Jr.,
Johnson,
S
to
ate
A.
Florida, Geor¬
gia, Louisiana,
Mississippi,
Revenue to
Parts
4)
the
"^be complexities of producing
...
sible
by
Julian
AT
omitted)
"
1
9,
Securities
an¬
Association
End Prod.
—
No.
embraces
Prices)
Brdcstg.
LIMITED
dividend
Dealers, is
tee.
6
Repair
1948
:
SAVANNAH, Ga.—Appointment
George J. Bergen as Secretary
No.
<000,000
THE SECRETARY,
\
Kirchhoff,
National Association of
Exhibit
(Factory
ADVERTISEMENT
THE FOLLOWING STATEMENT HAS BEEN MADE BY
Appoints Secretary
of
Electronics
t
as
NASD District No. 9
of
EXHIBIT
\ I
*
D/
a very
vision and the upsurge in
products through
distribution.
E.
toastmaster), Frank Daines, Vice-
gained powerful momentum sud¬
denly with the advent of tele¬
by
chosen:.
II.
War
the
in
own
Club-was
President, Ana Matsinger, Secre¬
the war, it sagged for a time, but
picture of the electronics in¬
revenue
is
was
World
great role
helping to win the war. After
in
...
dustry is the
its
and played
years
The final component making up
our
came
before
Mr!
.
the
tary
gentlemen,
industry. It
tronics
should
$1,500,000,000
and
year,
That,
1957-59,
By
1954.
revenues
industry.
of
Burdette, President (who acted
45
less
for
payment
of
this
BRITISH-AMERICAN
dividend
to
TOBACCO
the
transferee.
COMPANY, LIMITED
Unite
can
by
application to Guaranty Trust Company
of New York obtain certificates giving
23rd
February 1954
Stockholders
Taxation
credit
who
may
Treaty between
Section
131
under
particulars of rates of United Kingdoir
Income Tax appropriate to all the above
application
particulars
mentioned divide***.
mentioned
to
Guaranty
of rates of
dividends.
be entitled by virtue of Article XIII(l) of the Doubl?
the United States and the United Kingdom to a ta.c
of the United States Internal
Revenue Code can by
Trust Company of New
United Kingdom Income
York obtain certificates giinng:
Tax appropriate to the abova-
46
The Commercial and Financial Chronicle
(1C22)
Continued from page
new
highs
for
operating
efficiency. It is anticipated that the
5
cumulative
dollar carried through to
operating income before Fed¬
eral income taxes.
Last year the
Class I carriers as a whole had a
net
ratio
transportation
36.3%.
of
Among the major carriers the in¬
dividual ratios ran all
the way
from
to
for Virginian
low of 25.5%
a
Chicago
for
44.2%
Western.
&
North
Lackawanna
Delaware,
&
Western; New York Central,
and New York, New Haven &
had
Hartford
all
ratios of
over
vania
there
42%
with
behind
Virginian
&
Ohio;
an
curities
ment
held
are
regard.
is
This
in
high
railroads
invest¬
reported
net
a
One
troubles that
plagued the industry in the past
debt
excessive
the
was
burden of the heavy fixed
incident thereto.
the
and
charges
In the old
days
with
through the sale of more
when
and
rare
lured
Sinking
debt.
permanent
were
they
less
funds
or
bonds
ma-
just
generally
were
with
refunded
Pacific.
quately maintained properties re¬
tained
their
value
and
earning
tion to
little
that there is
see
imagina¬
vast dif¬
a
ference in the status and prospects
of a road that has to spend less
than 30 cents out of every revenue
dollar to handle the freight and
that
one
40
has
cents
to
to
more
spend
than
the
same
accomplish
Similarly,
the
had
a
a
last year
of
I
carriers
profit
15.4%.
margin
The
individ¬
ual roads ranged from a high of
33.1% for Western Maryland to a
low
of
3.5%
for Minneapolis, St.
Paul and S. S. Marie. Others with
profit margins of
last
than 25%-
more
Grande
Western;
Kansas
City
Southern; Norfolk & Western; St.
Louis Southwestern and Virginian.
Those close to the
bottom
the
of
list, all with profit margins of less
than
10%, were Atlantic Coast
Line; Boston & Maine; Chicago,
Milwaukee, St. Paul & Pacific;
Chicago & North Western; New
York
Central;
Haven
vania.
New
York, New
Hartford, and Pennsyl¬
&
,
as
criterion
a
of
any
com¬
pany's operations. There may be
special factors such as over-main¬
tenance, strikes, floods or other
particularly adverse weather con¬
ditions, etc. When a road is con¬
sistently near the top, or con¬
sistently
it
near
must
measure
bilities.
be
the bottom, however,
accepted
as
true
a
of
that company's capa¬
That is why it is so im¬
portant to follow
r
these
trends
so
closely in determining investment
policy, rather than relying on a
hit-or-miss
While
program,
there
or
on
tips.
are
exceptions, it is
pertinent to note that for the most
part the better performances have
been
turned
south
and
in
by
west
roads
and
the
in
the
poorer
performances in the east and New
England.
Constructive Attitude Toward
Rails
Fully
Justified
While I have said that railroads
can
be
not
investment
to
judged
one
I
single
am
as
problem
generalize to
forced
extent.
To
that I
am
constructive
at¬
some
begin with, let
me
convinced that
a
titude
The theory was that ade¬
say
toward' the
future
of
the
requires depreciation of cer¬
roadway properties as well
is to be successful.
fied if I
can
evening
do
than
I will be satis¬
nothing
more
this
you
convince
that
there is nothing further from the
truth
than the
opinion held in
some
quarters
that
the
railroad
Industry is a decadent one capable
of making profits
only under ex¬
traordinary boom conditions. Ac¬
tually, this is one of our most
consistently
profitable
The
railroads
Class
have.
I
industries.
as
in
a
whole
history failed to
§how an operating profit—in fact,
very few individual railroads have
never
l
i
r
i.'
■
S
-
f
i
t
t
that may not subsequently be cap¬
italized,
selves
the
and
have
railroads
voluntarily
them¬
been
re¬
ducing their long term debt.
In
railroad
lp30
peak
of
1947
it
around
debt
roughly $13
had
hit
its
billion.
been
indications
all
the
lion
of
recent
familiar
all
with
been
It
to
has
in¬
creased somewhat in the
but
years
past few
increase has been
this
able
had
rightly
lot
of
publicity, and
because of the roman-
a
so,
ified
of
deprecia¬
more
than just¬
out
from
the standpoint of in¬
operating efficiency. Ac¬
tually, the roads have continued
to reduce their long term mort¬
gage debt. All of this debt reduc¬
tion
has
been
going
in
on
a
pe¬
riod when the railroads have been
making
tures
unprecedented
for
additions
ments to the
I
would
expendi¬
and
better¬
like
also
to
stress the
fact that this program of reducing
the leverage in railroad capitali¬
zation
has
many
other
been
going
industries
on
when
(the
stemmed
railroads'
the
to
There has
installation
been
"New
of
cause
been
the
in
cost and less maintenance.
been the
has
toward
trend
The
ments.
cently been
have
railroads
going
in
to-station
these
re-
extensively
communication.
developments
are
All
of
designed
to
improve and expedite service,
and the speeding up of service is
an
important conserver of manhours.
*
The yards have been getting increasing attention from managements of many of the large car-
riers.
I had
York
had
the pleasure not
its
too
That
road
exhaustive study of
an
situation
and
had
conclusion
that
there
yard
the
to
Club.
Railroad
made
considerable
come
was
for
operating
economies, and plenty of opportunity to expedite train service in
this area.
The initial major yard
improvement involved an outlay
of
approximately
$4.8
million,
Figuring
a
room
4% interest cost ,on the
saving of 52%
cash
a
annually is being realized. If
credit is given for the cost of the
diesel
locomotives
leased
for
the
use
on
system when
to¬
tion
companies are good exam¬
ples) have been building leverage
cash
moreover,
by
have
bacco
were
re-
many
has
been
lower cou¬
refunding operations so that
charges have been going down at
pon
an
even
charges
$400
more
are
rapid
million
pace.
down
now
annually
Fixed
almost
to
compared
with $700 million at outset of the
1932 depression and $659 million
ten years ago.
Of course some of
this financial progress has been due
to consummation of reorganiza¬
tions of bankrupt railroads. This
is not the whole answer,
however,
as
railroads that maintained
many
was
completed, the annual
saving would come to a re-
on
tions,
in
and
It
structure.
these
that
30%
some
the net in-
there
and
is
the investment,
on
in
now
process
a
third
operation involving the expenditure of $14 million.
I cite
this only as an example
many
other
had
have
roads
the
same
experience and many are now going forward with similar projects,
Aside from the cash savings there
are
the intangible, but substantial,
benefits
arising
from
the
ability to give shippers better
service.
is
not
track
basis of
the
on
that I
plans
am confident
operating efficiency
yet approached its
railroad
has
improved
even
ago
year
forward to
ranr0ad
goal
all time high in
new
a
looking
were
we
in
earnings
1953.
That
not realized but the indi-
was
cated nef income of
approximately
an
excellent
$875
miHi0n
was
showing by any standards.
Except for the $902 million net reported in 1942 it was the best
showing since 1929 and compared
with $824.5 million net income reported in 1952. It is my opinion
that
the
had
railroads
cared
debtedness by
third to well
a
over
Pacific, to
name
a
few, have been outstanding in this
respect.
•
There is no question but that
the railroads today are in the best
physical condition in their history.
The Class I carriers since the end
of World War II have made
gross
expenditures for Additions & Bet¬
terments to equipment and road¬
way
property of
over $10 billion.
$1 billion a year has been
spent in each of the past six years,
and these expenditures have been
Over
superimposed
unusually liberal
maintenance outlays.
Reflecting
these expenditures, the
industry
year after year has been setting
on
»
»
Toward
Another
erations
great
any
the
of
trend
Mechanization
phase
that
railroad
of
has
not
to
little
effort
made
to
back
cut
on
maintenance in the closing months
when traffic
viously
it
falling off. Obrailroads considered
was
many
advisable
continue
to
their
a number of reaThe weather was unusually
heayy work for
sons.
mild in, the fall and early winter
that
so
it
feasible
was
keen
to
road gangs at
work. The railroads
knew that they were faced with
higher hourly wage costs so it was
desirable to get as much work as
possible done before the higher
wages became effective.
Finally,
ployees
just
the
before
holidays
such
while earnings were still at
a
high level,
op-
been
public
given
recognition is
toward
mechanization
found that the
to
cost
could
be
tie (exclusive
of the cost of the tie), a saving
of $1.00 a tie after allowing for
depreciation of the new equipment.
were
$1.40
a
Man-hours per tie renewed
reduced
Rails
importance
feel
of
do
that
rail
my op¬
the interme¬
on
not
mean
indiscriminate
equities
is
war¬
ranted at
this, or any other, time,
I do not feel that New York Cen¬
tral and Pennsylvania, while
they
heavily on property
improvements and new equipment
have
in
spent
recent
and
years,
even
though
they have made some progress,
have reached the point
whe^e
maintain
can
during
power
roads such
St.' Paul
as
in
a recession.
RaiL
North Western and
the
face
a
rather
will
be
they
earning
significant
down
west
grim
and
apparently
year—traffic
certainly they
by 39%. Another
article in "Railway Age" discussed
potentialities in the Pacific North¬
west
area, also can not hope for
better weather conditions than in
1953 and will probably be hit
in
by
iron
the
pic¬
fairly substantial drop
a
traffic.
ore
the
other
side
of
ture, Southern should do consid¬
erably better than average on the
basis of the strong growth char¬
acteristics of the service
and
area
the
highly favorable trend of op¬
erating cost ratios. Also, from a
market
angle it will become in¬
creasingly more obvious that the
1956
bond
maturities
no
longer
problem.
Illinois
which has recently an¬
present
any
Central,
nounced a two-for-one
split of its
is another highly favor¬
situation.
Except for those
common,
roads that underwent
organization
done
earnings
in
has
any
the
high,
are
country. Its
dividend in=_
a
in
be
to
seems
re¬
Central
job than
debt
other railroad
crease
judicial
Illinois
better
a
the
cards
time this year, and its traf¬
some
fic picture is bolstered by growth
in parts of its territory, and its
exceptional record with respect to
expanding coal tonnage. Santa Fe,
of course is always tops. It is one
of the few roads than in all its his¬
tory has never failed to report
earnings available after fixed and
contingent charges. Its capitali¬
zation is
tive
in
of the most
one
the
conserva¬
its finances
are
strong and the 1954 traffic
picture, compared with last year,
should
be
good because of the
1953 drought in the wheat states
served.
A yield spread of from
country,
.
Intermediate
There
are
vocating
Outlook
constructive
a
for ad-
reasons
many
toward rail stocks
3.10%
over
attitude
the inter-
mediate term. Most railroads have
installed
systems
budgetary control
that the traditional lag
declining traffic and recluced expenses should be
con¬
siderably shortened.
While this
not;
ciosing
generally apparent in the
because of con-
months,
siderations mentioned before, it is
indicated in many of the January
Cumulative bene¬
past week
or so.
property
from
should
current
improvements
continue to
accrue
in
the
meaning a further
improvement in operating efficiency.
Price-earnings ratios are
year,
ready been indicated in
stances
Grande
such
as
some
Denver
Western
and
&
inRio
Southern,
Finally, when it is demonstrated,
it will
be in early
future
months, that earnings of the bet-
as
ter
situated
tained
and
manifestly
sider
in
roads
the
face
can
of
be
main-
road's
the
7%
three
classes
at
term
is
stock
While
I
con¬
representing
as
the best value in
long
the
on
absurd.
these
their respective
the
many
present time there
other railroad stocks
that today
offer excellent invest¬
strict
so
between
was
on
bonds
The
"Railway Age" extremely low—three to five times
a few months ago carried an artifor some sound railroad stocks,
cle on the experiments made by
The yields are most liberal on a
one of the large western roads in
generally modest payout of retheir tie renewal practices. Small,
ported earnings. Thus, even with
highly mechanized gangs had been lower earnings indicated for the
formed and with the new macurrent year dividend
payments
chines
that
had
been
designed in the aggregate should be higher
during the experimental work it in 1954 than in 1953. This has alreduced
I
con-
higher earnings than
those actually reported. There was
siderably
maintenance.
was
the
outlook
term
able
they could well have shown
fits
Trend
a
selectivity—obviously
On
reports that have appeared in the
their
solvency through the 1930s
have reduced their long term in¬
Some Individual
stressed
timistic comments
peak.
project. A second
modernization project that
cost around $9 million is returning
it
new
yard
augmented
so
vestment in the
reduction,
tendency to
many roads
a
other' parts;- 01
jvas. probably a psychologithe moderniz&^-'-tMT-bisiiiclinatiori. to lay off em-
turn of about 80%
into their capitalizations. The debt
that
is
think that because
motive
new
with
proved signalling and communica-
original
lower
much
with
There
power.
this
bring
heaw-
gives nearly double
capacity
to
single track
lines,
our
with
has
the fact
daily lives come
and
press
will
earnings.
at
buying
be-
publicity there
the
all in
we
dieselization
ic*
realistic market appraisal
have
that
(perhaps
annually) at present
d
There
control which
track
I
UcVclup
already largely, or corncannot hope for any more favor¬
pletely, dieselized there are no
able winter and spring weather
avenues open for further subconditions than they had last
year.
stantial cost savings. This is not
Great Northern, while fundament¬
so.
There is still much to be done
in better yard efficiency, in meeh- ally a truly sound railroad prop¬
erty and with long term growth
anization of maintenance, in im-
the large
traffic
centralized
of
Look
in-
substantial
from
in contact
tributed
on
practically no one who does not
recognize the benefits that have
that
glamourous, and thus less
widely publicized, have been the
many other factors that have con-
A
bllUUlu
of confidence in the in¬
that
more
are
projects
levels,
Less
investment
properties.
is
motive that it has been replacing,
Look".
two
As I mentioned before there is
tic associations of the steam loco-
equipment obli¬ long ago of hearing the operating
of
the
Southern
gations to
finance
dieselizatioif vice-president
and modern rolling stock.
Such Railway, Mr. Brosnani'glVe a talk
on
this subject, before the New
debt is on a serial basis and is
self-liquidating
last
or more,
wage
to
due to the sale of
tion accruals. It is
50%,
accomplish in the
way
of expediting service and
controlling expenses.
The diesel
has
these
vestment
the
dustry
far
of
in
U1UI c
of current
diate
small the percentage return
are
that
lidiilL)
While the dollar amounts involved
years.
Impact of Diesel Locomotives
You
lining
work
same
formerly
Thursday, March 4, 1954
.
surgenee
interlocking as a means of offsetting the steady increase in wages,
,
By
reduced
billion.
$9.5
5
from
the
do
to
men
required 12 men.
More and more, also, the railroads
are
installing
automatic
grade
crossing protection and automatic
standards of efficiency will again
be established iri 1954. Moreover,
in
it'.*}
*
that
for radio communications not only
reorganizations
there have been set up annual in the yards, but, also, for endto-end, train-to-train, and trainfunds for property improvements
equipment,
as
roadroad industry is
fully justi¬ 50%. Santa Fe, Deleware & Hud¬
fied, although again stressing that
son, Great Northern, Illinois Cen¬
selectivity is necessary in the tral and Union
choice of the particular media to
be used if the investment
program
and
accrue
ier rail, with longer life' expecpletely reversed. Sinking funds to
provide for retirement of bonds' tancy, treated ties, improved ballasting, and other track improvehave become the rule of'the I.C.C.
creased
Of course, it is dangerous at
any
time to take one year's perform¬
ance
more
in full and there was no
thought of obsolescence. This en¬
tire
philosophy has been com¬
included Denver & Rio
year
or
power
tain
Class
whole
as
bonds.
now
end.
to
diesel locomotive and what it has
of the major
extended
takes
had
oper¬
ating profit of $375 million.
Southern; St. Louis Southwestern;
Western Maryland, and Western
It
track
new
the Class
30%.
City
con-
In the poorest year
in railroad history, 1938,
I
more
roads
Kansas
roads that enabled five
heavy
than can be said for many other capital expenditures will continue
in the current year, although the
of our major industries such as
steel, automobiles, etc., whose se¬ outlay may fall below the $1 bil-
deficit.
operating
below
ratios
Included in this group were Den¬
ver & Rio Grande Western; Gulf,
Mobile
reported
year
any
newly developed hydraulic ram
being used by one of the eastern
a
these
tinue
improvements to the properties
were
traditionally financed
other
six
were
Pennsyl¬
from
Aside
transportation
and
far
not
was
41.8%.
transportation
in
ever
from
property improvements will
Railroads and Theii Securities
revenue
benefits
.
.
are
ment
opportunities.
Among these
might be mentioned Denver & Rio
Grande
Ohio;
Western; Gulf, Mobile &
Kansas
City
Southern;
Louisville
board
Nashville,
&
Air
Line.
Sea¬
and
All
of
these
growth territories and have
serve
developed
a high degree of oper¬
efficiency, both of which
ating
would
be
calculated
afford
to
strong cushion during
a
period of
For the most
a
declining business.
also, these roads
part,
acterized
are
char¬
by conservative capital
structures.
In
the
Baltimore
speculative
&
category,
Ohio stands out.
Its
performance both with respect to
traffic trends and operating re¬
sults is markedly superior to that
of
either
New
Pennsylvania.
York
Central
or
It is much further
along in point of property and
equipment improvement.
It has
high earning power — something
over
$10
a
share
high earnings
the
to
are
present time
stockholders
last
year.
The
not available at
for distribution
because
of
the
declining heavy sinking fund requirements
Volume 179
Number 5304
....
The Commercial and Financial Chronicle
(1023)J .47
set up in the
voluntary debt read¬
justment plan of a few years ago.
This debt retirement
program, and
the
property1 rehabilitation pro¬
Bankand Insurance Stocks
gram,
however, are consistently
improving the fundamental in¬
vestment
and
stature
the
holders.
too
It
far
is
of
future
equity
that
the
Last week
not
com¬
to
pointing out that it
point where a
larger share of the
considerably
reported
a
earnings
will
be
least
some
characteristics
the
import
Port
of
In greater
To be
First
Mortgage
35-Year
Annual
Contingent
First
132,080.170
Series
"A"
5,732,953
$15,096,536
"A"
Income
as
1% )____
(of
Income
Bonds
Sinking
Fund
Series "B"' Income Sinking Fund
Philadelphia-Baltimore Stock Ex¬
elected
Jr.,
Frank
senior
L.
$23,160,731
share)
a
Co., i
$295,630,270
Total
brokers,
President;
as
*
•and re-elected
nine
of
the
first
four
capital fund is $11
The
Board
1953
.
will
Governors.
and
$2'},851,006
be
would
2Vz%
effective
date
of
of
less depreciation of way- and
roundly $4,000,000.
to
After
Mr.
burger
Last
marks
the
first
structures.
this
1953
In
rent
the
164-
the Exchange
that
L. Newburger, Jr.
a
former
a
has
been
position.
elected
wHtis
of
son
change
dent
that
to
of the Board of
$38,792,604.
ments for prior
Because
Vice-
Loeb in 1929, after attending Cor¬
nell
following tabulation
proposed
old
of
Missouri Pacific
in
the
table
Gen.
the
the Surgeon General.
Mr.
He
was
dis¬
5's,
Serial
5'As
1949
tabulation
have
we
Newburger
the
of
more
Stock
has
taken
the
Philadelphia-Balti¬
Exchange as it pre¬
to serve the ever-expanding
industrial
growth
of
&
greatest bcfc>mperiod in its history.
200
61V4
61%
65%
120
6s
5s
700
690
680
645
for
to
they
all
series—amounts
will
sell
at
at
on
individual
present
bonds
Mortgage
City
65'
72'
72'— 61
88
92
23
23%
24'/a— 20%
series
with
interest
rate
sufficient
National—Chicago
All of the
30 %
35
—
28'
49'
43'
52
—
40 >/4
the
of
Part
&
Refunding 5s to
national-Great
Dec.
31,
Northern
on
the Missouri Pacific First
1954 would be paid in cash.
First
Mortgage
would
bonds
Inter¬
get
and the New
cash,
in
bondholders would continue to get
All
in
$70.2
all, the
plan
two
companies had
an
are:
W.
George
Elkins,
some
current
assets.
Greenwood,
H.
T.
Presumably
George E.
Snyder, Jr., Geo.
& Co.; Edward Starr,
Jr., Drexel & Co.; William DeHaven
Townsend,
DeHaven
&
Townsend, Crouter & Bodine.
Snyder
distribution
year
appears
cash
reserves
will
be
by
bolstered
but even at that the proposed $70.2
high
in
relation
to
available
total
charges under the plan
and
fixed
would amount
cash
are
contingent charges,
to
$30,160,421.
fixed charges
before Federal
the
They might be somewhat higher if
total fixed
only 1.29
as
given would have been covered 2.57 times,
last year's available income and
income taxes, by
and
times.
contingent charges would have been earned
granting that
Even
maintenance outlays were
unusually generous in 1953, the showing is not impressive.
Ob¬
viously it would be expected that most, if not all, of the proposed
bonds
new
S. F. Exchange Member
SAN
Ronald
FRANCISCO,
E.
San
Calif.
Francisco
Stock
of
general
Mr.
Exchange.
partner
of
Baker,
Reynolds
a
&
Co.,
acquired
by
transfer the
membership formerly held by the
late James M. Davies of that firm.
trade
at discounts
the
On
basis
of
last
running, in the case of the
year's earnings, and
the nominal Federal income tax
Ex¬
change, announces the election of
John D. Baker, Jr., to membership
the
would
Incomes, to substantial amounts.
—
President
Kaehler,
able
with
for
a
the
very
view of this
5%
allowing only for
actually accrued, earnings avail¬
preferred would amount to only $8.88 a share,
modest $1.80
indicated
a
share available for the common.
earning
power
In
for the new common, and
considering that consummation of any reorganization plan appears
still to be at least two
amazed
273
—226
87
86 '
50
48
'
93
94'— 81
41
—
reason
about
been some concern
50
—
39'
the
for
loans that has taken
Just what
on
disappointing
operations
action
of bank
of interest rates and the
its influence on earnings. Also, there has
in the prime loaning
about what affect a cut
bank shares as well
might have on
rate
as
the liquidation of
place.
impact the lower level of
interest rates may have
will have to await the quarterly
reports as the
year progresses.
So far
as
the quarterly
reports for the first period are con¬
likelihood to be any decline ii^i Operating
it may be that operating results, will show a
cerned, there is little
results'.
gain
In
over
fact,
the first quarter of 1953.
years away, many
at the recent spurt in
In succeeding
indicated at $15,096,536 and
including the Capital Fund,
equipment debt is above the Dec. 31, 1952 level, as seems likely.
The
250
Security profits because of
surely to show a large gain.
periods operating results are likely to be deter¬
rising bond prices are almost
Fixed
Greenwood
Robert Y. Guarniery, R. Y.
Guarniery
& Co.; J. Raymond
Leek. Bioren & Co.; Harry MacDonald, E. W. Clark & Co.; Sam¬
uel K. Phillips, S. K. Phillips &
& Co.;
in¬
reserves.
Jr., Elkins, Morris & Co.; Herbert
apprehension
this manner of
of cash resources,
"
A.)—^—
(L.
undoubtedly been the trend
shares has
$20 million of capital reserve funds not carried in
cluding
million
elected
& Mexico
of 1953 the three System
indicated $84.5 million
earnings in the current
re¬
end
As of the
Philadelphia-Baltimore
governors
Texas
interest at the prescribed rate.
contemplates distribution in
cash.
million in
Orleans,
262
so
par.
back interest accrued
—257
34'
265
National,.
Nht'l
First
42%— 37.
292
269
497//a
National—Boston
Security
issue
—251
55 Va— 46'
33 Vs
America
Continental 111.
slightly.
vary
rates.
collateral
or
40%
281
281
80
116'—100 V2
117
42%
42
of
8.92 Shs.
,
51%
52
—
66'— 58 Y*
302
283
113VS*
110
Trust—
64'
62'
259
261
50>,
t.
First
consummation
First
——
First
800
220
200
—366
89 Va
65'
Trust
Bank
None
6s
—119
394
'
380
418
23%
I
Trust
S.
U.
$1,000*
67 y4— 58
140
63'
National
Public
53 y4— 43%
156
87
P.-
York
New
Shs.
t
121
387
Bank
J.
,
~
49'— 42 V*
49%
National
31
—351
48'
48
125
1954
—
55 V2— 47 %
45 V2
Trust
-
53
45'
National
3.42
396
43'
Morgan,
$1,819
379
,
40
Bank
Manufacturers
859
379
2.645 Shs.
t
Mtge.
'■Average
that
200
35
V2,
52 Va
Exchange
1953
Price Range
1952
1953
38'
376
York
Guaranty Trust
$1,073
1,000
300
100
1st
Adj.
$800
Bid Price Dec. 31,
34'
$500
$500
Exchange
The
Slock
in
All prices have been adjusted for stock
Trust
Trust
bank
17 major New York
outside of New York at various
splits to put quotations on a comparable basis.
New
Hanover
Common
$5 Pfd.
B
of
prices
showing
National
First
75-yr.
A
in the movement of prices between
14 months has occurred in the cur¬
48'
Irving
None
1st
M
C
None
Delaware
Valley, U. S. A., now having the
the
Corn
warrants.
similar
get
65-yr.
50-yr.
B
None
Preferred
$5
35-yr.
A
None
years' interest
Clubs of Philadelphia.
helm
Co.;
of
Bankers
member of the Bond and
a
Cornell
E.
the
which
Income 43/4S
Mortgagee's
$30141
1975
4s,
Conv.
office of
charged with the rank of Major.
T.
5s—
would
Dec. 31,
as
Market
holders of that stock
as
high of 297.48 reached on
the industrial index was
stocks.
in the China-Burma-India
served
theater and later in
pares
common
below
20-yr.
Ref.
tNew
He is
in
manner
this
In
a
thus 11.00 points
Current
Chemical
out
TInterest
Mr. Newburger
was
Manhattan
of
Chase
equity holders.
Cash
MOP
1st
war
upward to
On Dec. 31, 1953
presented below.
and
First
& Co.. which has offices in Phila¬
Pa.
bank
dividends and
remotely contingent participation through warrants.
a
filled
I-GN
During the
dates is
accelerated
from
International-Great Northern Adjustment claims to the extent
not
Newburger
delphia, New York, Atlantic City
and Vineland, N.
J., and Leba¬
1953
tabulation
Bank
the
outlines
The high for this index last year
5, 1953 when it was 293.79. A readjustment
a low of 255.49 on Sept. 14.
Since that
stocks and five major institutions
Empire
get only
founded
non,
re¬
securities would be allocated to the major classes
new
claims
omitted the old
NOT
of
benefits
tax
Jan.
year.
Bank
The
University, and became a
pprtner when the original brok¬
erage
firm
was
succeeded
by
Newburger, Loeb & Co. He later
firm
of
on
the companies combined accrued only about
years,
President last year. He joined the
firm of Newburger, Henderson &
the
companies
System
$307,000 in 1953 for Federal income taxes.
Govern¬
as
of
Dec. 31, 1953 and 57.1 at the end of 1952.
amortization, and also reflecting tax credits applicable to adjust¬
Presi¬
.
since 1945 and served
ors
Pacific
Missouri
Ex¬
father,
the
late
F^ank
L." Newburger, Sr., was
President from 1930 through 1934.
Mr.
Newburger
has
been
a
member
three
ported income available for fixed charges before Federal income
taxes
history of
year
F.
the
year
time
in
York
A
Newr
on
the two groups over the past
fund
the
1958
The election
of
November
interval the Dow-Jones index of 30 indus¬
Thus the major difference
(1955-1958)
plan
milliqii- arinu&lly, Jess depreciation of way and structures.
gross,;
come
of
now.
the
would* nave/been- roundly. $7,000,000.
charge
have
the
end
the
Since
19.
against 291.90 at the end of 1952.
as
New
12/31/52—probably higher
from
years
City bank stock
This
Nov. 27, 1953.
compared with 1.50
points in the American Banker index of bank stocks. Since the
end of the 1953 year, however, the industrial index has gained
16.58 points as against a decline of 1.10 points in the index of
$4,690,275
$809,764,722
charges—
Actually outstanding as of
tFor
directors
the
to
capitalization
on
June
on
same
1952 to Dec. 31,
t-
n ve s
ment
cash
larger
The decline for the Dow-Jones industrial index from
201,824,761
Newburger &
51
March 2 of this week.
4,690,275
93,805,509
(taken at $100
and
1953
In between
time the rally has carried it
Stocks—
of
two
on
4.
low
a
reached
280.90
No-par Common
for
carried the index down to
373,927
New¬
partner
13 and Feb.
was
3,552,307
(y2 of V/c ).
The
several
past
was the same
previous occasions during last year—
January and November the index
high of 58.0
a
touched
trials has been moving upward.
320,856
$514,134,452
Phila.-Balt. S. E.
change
burger,
it
as
During the
3,048,132
64,171,205
1% .)
of
(»/2
earnings reported
record
compared with 55.6
t
Fund
4'%
Bond
the
over
prices have declined and the index on March 4, 1954 stood at 54.5
768.973
74,785,417
—
Jan.
i
,
Fund
65-Year
Series
Newburger Pres. of
:PHILADELPHIA, Pa.
level
5,613,407
Requirements—
Expenditure
Mortgage Sinking
shares
bank
The "American Banker" index of New York
touched
Capital
of
disappointing.
stock
prices reached
1,726,176
$375,177,830
'
action
Bank Stocks
—
dividends, the shares of many of the leading banks
have shown little, if any improvement. Indeed, most of the shares
of the larger New York banks have declined in the face of a
steadily rising stock market.
$2,024,000
134,893,009
■
.
Despite
and
Charges
$67,583,751*
40,615,900
market
months has been
outstanding.
now
Outstanding
Virginia.
'
The
the
in
giving below the actual proposed capitali¬
we are
ores
Baltimore
1
increase
charges applicable thereto.
around
of
development of newly ex¬
ploited high grade coal deposits
adjacent to the company's lines
West
detail,
zation and the
and the
in
substantial
a
in fact, an increase in the overall debt above that
growth
centering
movement
the
through
of
measure
contemplated
capitalization compared with the previous Commission plan, and,
avail¬
able for distribution to the equity
holders. Meanwhile, the road has
at
This Week
discussed the I. C. C. examiners' proposed re¬
we
organization plan for the Missouri Pacific System in general terms,
pulsory debt retirement will have
progressed
E. JOHNSON
H.
company
the
indicated
the
in
By
the
of
prospects
rail analysts have been
quotations for the old preferred.
mined by
well
as
initial
If
so
investment holdings as
level of interest rates. In the
the trend of business loans and
significant changes in the
periods we look for a
bank shares should
well maintained level of earnings.
stability.
show more
48
-(1024)
The Commercial and Financial Chronicle v.^Thursday, March
Continued from page 18
Shurfleff, Bretey, Kops
With Hayden, Stone
Our
Reporter
Governments
oil
Television's Role in Education
By JOHN T. CHIPPENDALE, JR.
and
course
Economic conditions
really being hawk-eyed by followers
are
took
the
examination
as
course
the
in
ness
the
few
next
weeks
there will be further
will
to whether or not
in the interest rates.
ease
as
There appears to
give clues
be very little question among money market
further deterioration
in the
specialists but what
business picture will
bring with it
much easier credit
policy.
fication of
requirements in New York and Chicago,
ther
reserve
R.
The
Bretey
from
enlarged
government
shortest
the
the
to
list
has been
doing
longest maturities.
good job of ;it
a
is, however, the
It
3V4S of
all-time highs and move on towards the 110 level which
of
Hayden,
Stone & Co., 25 Broad
Street, New
City, it has been announced.
York
Shurtleff
the
firm's
ment.
He
degree
from
will
Doubt
be
Manager
Depart¬
engineering
holds
an
Massachusetts
The
in
the
that
Scarcely
college in
they
as
make
con¬
was
assured
getting
Bretey has been
for
many
railroad
a
of
to be
seems
indicating that there is
new
money
The tone of the longer-end of the list shows
still
are
moving
into
hands
strong
with
and
years
of
both
the
end President of the Textile Sales¬
men's
Association
of
America.
Prior to World War II he
:ociated with
E.
was
as-
F. Hutton &
Co.,
where he specialized in
Japanese
silk contracts.
time
same
nounced
that
"will take
over
David
it
B.
been
years
with
as
MacNeil
firm
of
the
for
Re¬
the 3 Vis due 6/15/73-83.
1
Other changes include: Peter G.
Wyckoff, formerly with Investors
Advisory Institute, a .subsidiary
of "Forbes Magazine," who
joined
Research
are
Sales
new
the
now
most of the business is be¬
good
as
bonds.
as
be obtained
can
additions
•
.»
,
The way in which the government market
-
back
after
tional.
-
•
cost
of
There
doubt
no
in
the
sinking spell of last
of
senting
tent.
of
Programs
However, the longer-term lxk%
whole has
as a
come
sensa¬
bonds have really
■
only
a
quotations will take them back to 100 again.
what there
is
much
a
more
modest
very
mercial banks,
feeling around
While
with quotations again crowding the
there
was
considerable
a
done by the banks in the 2Vz %
of
amount
bonds, it
was
par
in
denying
no
the holders of the 2lk% bonds, especially the smaller
among
prices did
cause
of
have
not
the
such
purchases
substantial
a
that
now
com¬
and
pre¬
con¬
also
have
must
lower, most of the deposit banks that
The 3%%
much
and
difficult
senting
it
still
The bond is
now
known
gives the best yield of
a
more
or
less
tion than the
to
as
any
government
scarcity item.
are
ever
show pretty
a
"museum piece" and
a
some
has
high premium 3 Vis.
come
out
of
the
issue, it is
However,
rather
sizable
it
A goodly portion of the money
bond, according
reports, has been put to work in tax exempt securities.
appreciative
MUNICIPAL
due
former, with commercial banks
SECURITIES
far
as
this bond is concerned.
part of those
in
the
1961
that
not
are
willing
star per¬
a
important buyers
a
tendency
taxes
to
take
profits
a
common
in
this
good
stocks.
to
as
We
term
cor¬
some
bond
two-way market because
has
there
plenty of buyers around for this obligation.
Trading positions
the
of
INCORPORATED
BROAD
t
ST., NEW YORK
WHitehall 3-1200
231 So. La Salle St.
45 Milk
St.
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
reportedly
higher yielding Treasury
these
come in
5
are
securities
for sale.
are
Funds
obligations
going out of the
are
because
practically
as
fast
as
all
they
available for the purchase of
govern¬
gain
teaching tool, and
additional
and
thus
This
in
reasons.
great,
a
new
will have
an
to raise the edu¬
communities
our
the
serve
and
basic
we
means
cational level of
the
future
of
be
most
effective in the stimulation of edu¬
cational interest and
activity on
the
It
part of thousands
of
citizens.
give many of them
can
more
education and
desire
a
greater
a
respect for learning.
The
purpose
the
of
television
to
of
has
raise
the
is
to
people.
the
potenti¬
intellectual
the
an
intermediate
new-money
needs
or
of the
Treasury, there is not a great amount of hesitation on the
part of
those that have
money to put it right to work.
Easy money con¬
ditions, they feel, will continue
so
why wait.
I
to
bring about lower interest rates,
The Debentures
at
100%
the
for
1980
maturity.
Hydro-Electric
Our
future
growth
as
the in¬
creasing enlightenment of the
ple.
So rapid has been the
for
a
peo¬
ad¬
technology that need
by which
means
so
nation
a
is greatly dependent
upon
vance of our
we
can
of Ontario.
will
add
better
a
vitally neces¬
that, there is need
to continue the
means
education
of
all
citizens
after
completion of their formal school¬
ing. Television's role in this can
far-reaching.
know
prerequisite for full par¬
ticipation in our national life.
a
is
certain
the
that
when
educational
in
are
the
its
present
capital
institutions
extend
their
will
value
construction
program, to repay temporary loans
of the Commission outstanding at
the
time
of
the
bonds
repay
advance, and to
the Commission
of
maturing March 31, 1954 in the
principal amount of $5,000,000.
The
Debentures
of
will
be
cu1-
and
be
able
beyond
to
their
direct
Province
the
of
Ontario and principal and interest
will be payable in lawful money
of
the
United
maturing
States.
Debentures
1960
through 1964 are
redeemable at any time on and
after March 15, 1959 at the prin¬
cipal amount and accrued inter¬
a
for
period of
each
premium
of
of 1%
Vi
12
months, or
fraction thereof, between the re¬
demption date and the respective
maturity date
be
to
of the
redeemed.
maturing 1980
plus
time
15,
premium ranging from 3%
a
before
1%
after March
and accrued interest
Debentures
lor
Debentures
redeemable at
are
and
on
Debentures
The
March
for
redeemed
1961
15,
those
on
or
V2
to
of
after
redeemed
March
15, 1973 and
March
15, 1976 and at
on
or
no
before
premium
for those redeemed thereafter.
Ontario is the second largest in
of
area
the
covering
land
of
1953
of
Canada.
province
Estimated
area.
the
was
33.1%
provinces,
412,000
miles, of which about 88%
square
tion
Canadian
approximately
province
4,897,000,
the
total
on
Jan.
popula¬
June
1,
representing
population of
direct
Net
on
debt
31,
of
1954
the
was
$626,220,227.
Other
members
of
the
television
operation, most of
nation's educational
tural
the
all
Commis¬
Commission
moneys to its cash
which will be utilized
among other
things, for capital
expenditures in Connection "with
is
that
only about half
of all the American
high school
graduates who are eligifre can
afford to go to college. And
yet,
a higher education has become
al¬
most
The
resources,
both
speed and broaden the basic edu¬
cation of youth is
Beyond
Power
sion
1959 at 100%
backgrounds
developed soon.
1960
Proceeds of the offering will be
advanced by the Province to The
any
be
priced
are
maturities
through 1964 and at 99%% for the
that it
group
include—The
offering
First
Boston
Corporation; Smith, Barney & Co.;
The
Dominion
Securities
Corpo¬
ration; A. E. Ames & Co. Incorpo¬
walls to millions of citizens whom
rated; and McLeod, Young, Weir,
they cannot
Incorporated.
ment
bonds, and despite the belief that either
long-term bond could be used for the
2.70%, 2.75% and 2.80%, respec¬
tively and $30,000,000 of Deben¬
maturing March 15, 1980,
bearing interest at the rate of
tures
level of all people, it is natural
that educators should want to lend
their energies and
can
Co. Incor¬
&
of Ontario (Canada) Debentures
consisting of $20,000,000 of Deben¬
tures maturing $4,000,000 annually
March 15, 1960 through 1964 bear¬
ing interest rates of 2.60%, 2.65%,
est, plus
education
lives
Ripley
porated and Wood, Gundy & Co.,
Inc., jointly head a group which
is
offering $50,000,000 Province
obligations
can
and
Bonds Marketed
all
nation.
believe that it
stations
market
two
to
proposed
the light side in most of
on
large
reward
our
interested
are
for
stand
We
profits
Trading Positions Light
& Co.
educators
television
It
Aubret G. Lanston
but
by educational television.
We
the
on
take
The fact that
intermediate
pre¬
with
a
treasures placed within their
reach
be
There has been
about
been
maturity and to put the proceeds into selected
helped to give this issue
are
has also
also the most
concerned
porate bonds, preferred and
are
1961
of
Basic Reasons for Educational TV
for
2V2S in Demand
The recently issued 2V2%
have
audience.
be easy,
the
of
we
programs
not
sary.
New
qualijty
and
is
trades
present desire to take profits
longest government
part
assignment
will
alities
due 6/15/78-83 has been putting on
by itself.
the
on
sufficient appeal to retain
for
put the funds into other securities that have greater attrac¬
which
and
the
were
3V4S
on
eagerly
are
participant. Consequently
Since
Scarcity Value
and
Learning
requiring per¬
process
effort
enrich
in this issue because there is the
STATE
However, be¬
quotations
pretty well out of the woods.
rapidly becoming
TREASURY
if
the long 2V2s are now
own
self
a
sonal
We
averaging
not enough, accord¬
when
entertainment
general public
people
level.
dollar
recovery.
made
were
is
been
increase
There is
comfortable
of the
of
attain
station
quality
camera
material
and
satisfaction
of
$50,000,GGQ Ontario
Harriman
television
a
heights
usefulness.
good job.
a
enriched
be
will
new
mind
Doing a good job, however, in
my opinion, requires more than
just standing a professor in front
new
is little short of
year
bers
can
my
the
if
worth¬
educational
through
that
financing operations of edu¬
television
be
will
results
sup¬
that
is
however,
confident,
are
television the lives of untold num¬
oper¬
will be the gratitude of the
many
people who will benefit from the
the star performers because from the
sickening levels of 89% they
have now reached prices where
in
Department.
in
Banks "Out of the Words"
reported from time to time there
*
the
meet
the
while,
suf¬
striving to be educated.
are
discount,-there is much that is desir¬
able 'in -the longer-term 2 lk %
while
U. S.
up.
However, when the yield after taxes is
tions "are still, available at a
Department,
and
JIarry C. Howell, Henry Leach,
Henry N. Kohl and Arthur J. Fitz¬
Retail
move
distant maturities
most
demand
ing to reports, to offset the losses that they might have faced
Department.
gerald, who
the
though yield is not
even
institutional
price continues to
as
in
the
bonds is
considered, the shorter maturity and the fact that the 2V2% obliga¬
Mr. Mac-
the
head
bonds
with
an¬
management of the
■Corporate Department.
has
was
tendency
aggressive
2V2%
ing done
but
the
expanding
an
important issues and the,ones in which
York
New
Mr. Kops joins the firm's Com?nodity Department. He was for¬
merly: a Vice-President of : the
Rayon
Corporation of America
15
income
we
that
they will receive
those
gifts.
Yet, most have a
hardy existence, and operations
continue. They grow and develop.
cational
long-term bond being offered for
a
securities
more
The
t*:e National Federation of Finan¬
cial Analysts Societies.
;
endowment
to
tion.
the
ating the institution without
plementary gifts.
No
one
about
long ago.
so
of all
private university or
nation
has
the
a
de¬
undertak¬
this
to
ing.
We must acquire new ex¬
perience in the use of this greatest
media of mass communica¬
the
showing
management
Institutional
Shares,
fociety of Security Analysts and
the
really glamorized
than
of
President
0
these
examination
students.
showmanship if we expect to hold
our
viewing audience. Very few
member
a
joins Hayden, Stone & Co. in that
capacity. He was previously with
Baker, Weeks & Co. and is a past
the
been
Long-Term New Money Issue
future.
near
the
campus
ficient
voted
those
efforts of
worthy
cooperative
sur¬
people, the home
group performed bet¬
many
as a
The buying which is being done in the longer-term 2*/2%
r~ecialist
search
have
government market
less likelihood
Insti¬
limited.
many
in
class¬
investment
group
ITeil
ter
the
To the
features
the
At
viewers
in
The
who
"scarcity pockets" being uncovered here and there in certain issues.
Bissell & Meeds and is
Mr.
that
Research
Technology. He was pre¬
viously associated with the Guarynty Trust Company and Laird,
of
1978/83
sidered fantastic not
tute of
4
the campus.
of
does
Mr.
of
more
the
on
prise
guarantee
entire
the
firm
market
open
Lynn Shurtleff, Pierre Pi. Bretey
and August W. Kops have joined
securities
fur¬
a
of the things that could be done to make
are some
a
reclassi¬
a
available.
credit
Pierre
requirements,
reserve
lowering, of the rediscount rate, and
operations
Lynn Shurtleff
Lower
a
pursued
room
of the money markets because it is believed that the trend of busi¬
slowly in some areas.
ever-present difficulties will
be surmounted only through the
made
be
final
same
students
Finally,
don't
new
now.
shodld
I
say
that
we
expect the establishment
Channel
work.
serve
11
As
to
in
go
the
development,
off like
case
of
progress
N. F. S. Russell
of
clock¬
every
will
N.
F. S. Russell, member of the
New York Stock
away on
Exchange, passed
Feb. 24.
Number 5304
Volume 179
Continued
from
.
.
The Commercial and Financial Chronicle
.
airliner of the future is convinc¬
15
page
Where Is the Helicopter
helicopters
equipment
larger
as
becomes available.
Helicopters
here
in wide
are
abroad
and
for
both
use
agricultural
-
as crop
off-shore oil fields. Several of the
Its
mineral and indus¬
in Canada use heli¬
copters as the basic medium of
transport. The New York police
have
operated
a
fleet of heli¬
copters for several years, using
power,
trial projects
them for jobs ranging from aerial
control of traffic bottlenecks to
the
bathers
of
at
Coney
the removal of injured
rescue
Island and
stepple jacks
perches.
from
dangerous
Practically all of the helicopter
work
has' been performed
relatively
small machines,
today
with
the
until recently
carrying only
largest
capable
of
people.
being
eight
The most
important new
the
helicopter
and one that offers both a
extension
of present
heli¬
development
scene,
wide
on
copter
operations as well as
area
of helicopter usage,
new
the
advent of the
a
is
large transport
helicopter. Such machines
as
our
20-passenger
H-21,
which
been in production for the
has
past
two years; and our H-16, the
of a series of 44-passenger
first
and
larger helicopters. The ad¬
vent of these' large machines is as
significant to helicopter usage as
even
introduction
the
was
commercial
to
Flying
tion.
of the
aviation
(3)
fare.
a
Future Potential
heli¬
copters, the recent advent of large
developments,
and
in¬
tensified
new
the
The
production will
bring
and extended applications for
Military: (1) Foremost
among the important new military
roles
vertical
is
Vertical
for
copter
the
by
time
first
Armies
airborne
true
envelopment.
envelopment
heli¬
makes
reality.
a
integrated units of
predetermined spots,
envelopment eliminates
landing
By
troops
the need
for large concentrations
of
close
ships
off-shore.
land
mits forces to
on
It per¬
defensible
spots, and by passes the need for
landing
on
defended
with the tremendous
characterized
War
World
ment
such
beachheads
losses' which
operations
in
Vertical envelop¬
II.
permits landing of forces in
organized fashion rather than on
scattered area basis as is neces¬
a
with paratroops and gliders.
Furthermore, it provides an im¬
sary
two-way
mediate
for
system
wounded
and
the
transportation
evacuation
of
the maintenance of
Aside from its im¬
mediate tactical value, the mobil¬
supply lines.
ity of vertical envelopment is an
extremely vital addition to our
punch in an era! in which it is im¬
possible to have enough forces at
every potential danger spot at all
times.
have
can
access
to
without actu¬
areas
rolling or landing and be¬
coming contaminated itself.
It is
the
only vehicle which
to
access
damaged
the need of roads
fact,
have
without
can
areas
airports.
or
In
and
show
capacity
inherent
no
tech¬
economics
commercial
we
foresee the
can
design of heli¬
chines'
areas
increases
main
have been used
purpose in all of the
can
the
broaden
coporation
Commercial:
appraisal
An
of the growing
military use of the
helicopter is only one part of the
picture.
We also must consider
the
commercial
future
of
the
helicopter.
Helicopters
will
be
used
to
provide rapid
short haul transport both within
metropolitan areas and in city-tocity service. When one takes into
account the transfer time required
between downtown and airport at
transport
take-off
of
the
and
flight
the
and
airplane spends in
landing procedures,
of comparative
analysis
an
the
city-
to-city center speeds shows that
even
today's comparatively slow
airplane
up
to about 150 miles. Higher
speed helicopers" under develop¬
ment today can beat 300 mile an
helicopter
hour
mile
the
beat
can
airplanes
about
to
up
300
stage lengths.
Moreover,
helicopter
service
be
provided without the tre¬
capital investment
necessary for the construction of
can
mendous
Many communities do
in
because
airplane service
either the space or
quired for
an
cannot—have
fact
they lack
the capital re¬
airport capable of
handling today's high speed air¬
The helicopter can make
planes.
air
service
available
to
even
the
small communities.
The advent of
large helicopters
has brought widespread
helicopter
transportation quite close to real¬
Our
company
for
has had
helicopter
passenger
tion
almost
such
features
stall
of
high speed, and addition
devices to automatically con¬
motions
the
blades
at
high
the
of
speed,
rotor
well
as
in
two
a
20-
produc¬
and
years,
as
other features to permit rotors to
■
In
the
speeds
rotor
loaded,, .which
can
must", be un¬
Jbe * dbne by
adding a wing to carry the load
at high speeds. To further reduce
the
demanded
load
of
the
rotor
it.
call
the
helicopter.
compound
reach
miles
vehicle
combination
This
may
a
said
that
Eastern
an
speeds
of
250
to
It
300
hour.
(C) For even higher speeds, an
entirely different type of machine
will
be
required. This is com¬
called the convertiplane.
different designs for convertiplanes have been proposed.
speed of the helicopter gives cur¬
rent
machines greater ton mile
capacities than
trucks.
.
This
even
biggest
the
increased
capacity
such
as
New York to Boston,
less,
Phil¬
adelphia to Washington, and New
York
to
Washington,
will
be
served
effectively by helicopters.
have
had similar indica¬
We
are of tremendous
importance.in this era^of defense tions of tangible interest from
other airline heads.
on a world-wide basis where suf¬
The proof of the pudding that
ficient ;;quantities ; of- manpower
and equipment are critical.
This the helicopter is the short-haul
and" mobility
harbors
and
plane with
reducing the drag of the machine
attractive
ranges,
result
the
than
weight
carry¬
be chosen. For short
increased speeds may not
in much time saving, es¬
may
pecially when compared to other
of transport; but the weight
means
carrying efficiency is paramount.
Therefore,
the
choice
of
the
method of increasing speed must
be
of
made,wjth. a careful evaluation
the
end
achieving
between
the
aircraft,
economic
balance
use
-an
speed,
of
weight
carrying
with
copter
docks, and
its-
requires
facilities
the air¬
the- heli¬
its airports,
less
supporting;
other vehicle.
thaw any
We, therefore can expect
velopment to be rapid.
its
de¬
The capabilities of the transport,
helicopter
impact on
work,
will
have
profound,
a
transportation net¬
our
our city planning, architec¬
design, and location of in¬
tural
and
ex¬
metropolitan
areas
have
large
Metropolitan
areas.
generally been defined as regions
embracing a travel radius of one
hour's time. Clearly, such areas
social
aries
of
and
economic
metropolitan
areas
the
toward
trend
a
I
areas.
that it will seriously
the role
of existing
growing
decentralization
increase
to
of
the
forms
speed
entire
the
portation system.
ami.
trans¬
*
•
Its
impact on architectural de¬
sign will be basic. Already there
is
growing interest in, and atten¬
tion to, the inclusion of helicopter
landing
in
spots
design
the
of
*
factories, hotels, office build¬
new
ings and similar centers of trans¬
portation
flow.
America
Just
the
on
putting.
as
the
of
wheels
motor vehicle has
clearly changed
patterns of living, so the rotorof the helicopter will per¬
our
blades
mit
other
expansions
ciencies in
There
our
are
craft
in
and
effi¬
.
*)("
of life.
way
technical
no
to the progress
barriers!
of vertical lift air¬
sight.
With the breadth,
of vision that characterizes Av:"a-
tion's
Golden
Age,—with
the*-'
atmosphere
healthy technological
that
has
the
seen
so-called
bar¬
riers of low and
high speed flight
broken, with proper planning and,
public support, the
helicopters,
usefulness
and
progress
limited.
are
The best is yet
un¬
aheadl
Robf. Matthews With
Scherck, Richter Go.
by
miles, while still permitting
the same rapid transit time.
is
residential
mean
convenience
bound¬
many
there
and
not
reduce
ST.
LOUIS,
Mo. — Scherck/
Company,
320
North
Street,
announce
that
Richter
Fourth
Robert H. Matthews became
for economic reasons,
defense purposes, and because
lack of space for new plant
asso¬
of industry,
ciated
for
them
as
March
1.
Mr..
Matthews
ha&
vides
ready means of tying such
a
some
in,
the
tion,
^
origir.a-runder¬
and
writing
private place¬
of
ment
porate
traffic bottlenecks,
cor-
securi-!
He
ties.
to be losing ground
gaining in the relief of
surface
congestion
and
bottle¬
necks.
In keeping with this his¬
we
of
long;
experience
highways, wider streets, and have
relieved
with
had
plants, supporting suppliers, and
forward to act as pro¬ their
customers
together
with
for
high
speed
flight. direct source-to-destination trans¬
Another
design approach is to port.
retract the rotor as the aircraft
Despite the great public works
accelerates to higher speeds, thus
projects that have brought us new
and
'the*
unlike
highways, the steamship with its
inclined
tical work,
or
For,
automobile
pellers
ing abilities; and so a compromise
miles
the
away,
be
speed
300
transportation.
railroad with its tracks and
right-
sites in cities. The helicopter pro¬
on
of
synchronized
are
of
50
routes
of
Many
oping and procuring helicopters
substantial numbers for logis¬
all
and
tension
and
monly
in
an
trends
urban
with the decentralization
Similarly,
Captain
using the helicopter as
aerial
truck.
The
greater
problems
the
Airlines
plans to spend $50,000,000
helicopters of capacity of 25passengers.
He predicted that
'
,
American
to
we
now
Eddie
''
•
propeller can be
added,
control
of
the
aircraft
as
our
own
have
reached that
being achieved with conventional
time
boundary
with
existing
airplane surface controls (ailerons,
forms of transportation. The heli¬
elevators, and rudder). The rotor
copter
will
extend
this radius
then is in an idling condition at
many miles and therefore extend
high speeds with very little lift on
high speeds
Our Armies are also devel¬
(2)
both piston,*
"
(B) In order to further increase
at
:
through
by-passing the problems of
flying the first of a series having the rotor exposed in high
of 44-passenger and larger heli¬
speed flight. This type could be
copters. To date, helicopters have designed
for supersonic speeds.
been required to fill urgent mil-1
There
are
almost
an
infinite
itary needs. But their approach¬ number of proposed designs for
ing availability to commercial op¬ convertiplanes — in fact, many
erators opens a vast new medium more
designs than competent in¬
of modern transportation.
When ventors.
Captain
Eddie
Rickenbacker,
Selecting one of the above three
Chairman of Eastern Airlines, vis¬
ways to increase helicopter speed
ited our plant recently, he said,
depends on the requirements of
"Every city in the country inter¬ the aircraft application. Obviously
ested in its future commercial de¬
for certain military tactical mis¬
velopment should plan early de¬ sions, the highest speed, regard¬
velopment of suitable heliports, less of economics, is the most de¬
not only to transport people be¬
sirable. For long range operations
tween
the
center
of' populated the decreased trip time — such as
areas
and
outlying airports but time to rescue point—looks very
also for local
inter-city travel." attractive but not necessarily more
is
hearts
the
as
V'
the air I at higher
Impact of the Helicopter on
addition, the higher
Society and Economy
speeds will then make retractable •
The helicopter has developed in
landing gears and streamlining
advantageous. This type of ma-v era which gives it unique time¬
chine probably can be developed liness for commercial transporta¬
tion. Its capabilities are essential
up to speeds of 180 miles an hour.
travel
velocities.
that inherent to any other form oil
work
engines and gas turbines are beingtested
for
the silencing of pas¬
senger transport helicopters. Spe¬
cial flight instruments, more pre¬
cise radio navigation devices,, and
specialized military equipment are
being conceived and developed to
extend the helicopter's usefulness.
at
trol
such
areas
of cities. Mufflers for
as
transportation.
flight
are
structed
boundary layer control of the air
flow over the rotors to delay their
In some of these the rotors can
capable of flying at higher speeds
ity.
of
of
areas
All of this can be achieved at a
capital
investment
lower
tha/n
.
flight
Automatic
of
being perfected to
permit helicopters to operate in
all forms of weather, even in ob¬
(A) Improve the characteristics
by the in-
years.
of
ai
transport; rather, it will sup¬
plement them, tie them together;
and provide
an
integrated net¬
use
unique
helicopter's
systems
of the helicopter rotor
our
with-
of
effective
most
and
characteristics.
ways:
these*
flexibility in the form
new
being developed to permit the
the
ma¬
of application. Speed
be achieved in three
by
supplement
vital
do
are
speed of vertical lift
will
cost
in the
determined
will
transportation-
dustry
widest
Increased
This
airports.
be
to
established
lines,
Equipment
(both ground and
helicopter-borne) and techniques
copters over 200,000 lbs. in weight.
aircraft
pattern
lines-of
future.
mili¬
and
by
for
necessary
remains
tary planning dictate. Even today
atomic bomb tests of the past four
(B)
com¬
savings in high
speed landing devices presently
required and by reductions in the
tremendous
capital
investment
outweighed
heli¬
of
chines, capable of lifting heavier
and heavier loads, can and will
be built as the basic workings of
helicopters
for this very
on
vertical
as
war¬
question that
no
hand, it is quite possible that the
price of the combination will be
nical limit. Larger and larger ma¬
ally
not—and
.(a)
civilians
us
helicopter is the only
that
airports.
rotary-winged craft,
to
place in atomic
contaminated
transport helicopters, the pace of
technical
its
vehicle
the helicopter—and
vital
one
well—is
ends
wider usage.
on
this
that
vehicle out of limited areas odd ap¬
emphasis
tary roles of
both
to military avia¬
ability to carry large
new
One of the most vital mili¬
(4)
size
The
copters
vessels.
cargo
time
plication and into the potential of
The
even
the
loads is the feature which takes
even
from
of helicopter
Development
the
fixed
There is
uses.
small
DC-3
and
Fortress
The
ability to take off and land in
areas
makes
it
operable
the
development, let^ pound helicopters,._and eonvertialone in production, in the United planes fully capable of both heli¬
States today.
copter flight as we know it today
and high speed flight as fast as
Technical Trends in the
today's airplane speeds, are tech¬
^Helicopter Field
nically feasible. The economics of
Dynamic
technical
advances these combination vehicles," how¬
continue to take place in the heli¬
ever, are the big question at the
copter field. These advances are moment. It is possible that the
in three major areas:
penalties
of
weight
and
com¬
plexity in either the airplane or
(1) Size and capacity
helicopter flight regimes, or both,
(2) Speed
will limit their use. On the other
exposing itself to their torpedoes.
vital
complexity... of
,
■oM*"
vastly increased mobility shortens
supply
pipe
lines
and
permits
lesser
forces
to
cover
greater
areas.
and
under
even
are
Heading?
(3) In Naval warfare, the heli¬
dusting and
spraying, and frost relief.
The copter will be a basic vehicle in
major oil companies are using combating the submarine threat.
helicopters extensively for geo¬ Its ability to fly low and slow and
physical exploration and supply in to hover makes it" capable of
swamps, mountainous terrain, and
searching for submarines without
such
purposes
ability,
design.
ingly contained in the fact that no
short
haul
fixed-wing airplanes
ha
appear
specialized, to
rather than
torical
trend
of
seeking
new
a
|
considerable'
in ther
securities of;
extent,
Matthews
H.
Robert
companies
of transit
located in the Southwest where he/
in order to bypass the saturation
has
wide acquaintance. His an¬
of existing levels, the helicopter
alyses of certain individual se¬
opens up the one remaining new
level—the air. It is a further step curities and his "Build Yourself a
levels for the expansion
transportation
increased
in
city
by
new
elevated
railways,
capa¬
such as
strata
subways,
the
and
overhead highways.
In
addition to its advantages of
speed
tion,
the
and freedom from conges¬
the
helicopter
economic
very
of
structures
in that lines
can
change
and
metropolitan
social
areas
of transportation will
be
supplemented
by
areas
of
transportation. Our transit facil¬
ities
today consist of a series of
lines, fixed
by the pattern of
railroads, streets, and highways,
and rigidly confined by the
in¬
dustrial
and
tures which
residential
struc¬
surround them. Travel
from these main lines and
between the areas served by them
away
is slow and less convenient.
The
helicopter, not being restricted to
Fortune,"
tise
comprehensive trea¬
a
the investment
on
character¬
insurance
stocks,
have
received nationwide
acclaim
from
investment dealers.
Matthews,
Mr.
Green
tary
ness
f
of,
.
air¬
World War I. He
th'e investment busi-
pilot in
been
in
since
partner
of
early
G.
1917
H.
and of Reinholdt &
associated
which he has
;
,
past yearr he-
with
Dempsey,
*
Louis. He toll v
activities in fields in
Tegeler & Co. of St.
continue his
,
and was a
Walker & Co.
Gardner, both
of St. Louis. For the
was
native
a
Wisconsin, saw m:li-
Bay,
service in France as an
plane
has
life
of
istics
specialized.
50
The Commercial and, Financial Chronicle
(1026)
Continued
from
approach to
11
page
production?
position of military
makes it pos¬
a
preparedness
Than
added
this
to
$7 billion and is
accelerated
inventory
surplus
till it amounts to
between $6 and
rising at
now
President
The
rate.
an
stated this matter well in his farm
Congress
to
message
Jan.
on
11,
1954:
laws
"Present
discourage in¬
consumption
of wheat,
creased
and
vegetable oils
their
excessive
production. The huge and grow¬
ing surpluses held by the Govern¬
cotton,
corn,
and
encourage
ment
act
normal
ucts.
as
constant
a
markets
threat to
these
for
prod¬
Because such tremen¬
dous supplies are already in hand,
acreage allotment and marketing
.
.
.
quotas have had to be applied to
wheat
and
An
cotton.
appeal to
the Government for sharp acreage
for
reductions
avoidable.
move
the
treat
.
appears
un¬
.
fundamental
present
our
corn
Therefore, we must
without further
delay to
.
causes
supplies
excess
of
of
far-reaching program."
acute
inventory
symptom seems to me to indicate
considerable
supply-and-demand maladjustment, and there is
no
prospect that this excess in¬
ventory will be liquidated by the
autumn of this year — or next
a
year.
In the industrial
field, steel pre¬
sents an interesting case bearing
on
the problem of whether we
now face merely slight inventory
adjustments or a basic capacity,
employment,
and
purchasing
power issue.
At the strong prod¬
ding of Government and with
some
special
inducements,
the
steel industry built up from about
100 million tons of annual ingot
capacity at the time of the Korean
outbreak to
lion
tons
little
a
over
This
now.
124 mil¬
presents
no
inventory problem because foresighted steel company manage¬
ment cut
production well in step
with abating
demand. The indus¬
try is now operating at about 75%
of capacity. Mr. Fairless, head of
the United States Steel Corpora¬
said that, "All in the
world we really need is less pessi¬
mism, more 'Detroit talk' (con¬
has
tion,
fidence
faith
itself
in
the
in
and
a
a
and
satisfactory
very
a
Some
year.
security analysts have calculated
that
United
States
Steel
might
maintain its rate of profits at that
ratio of capacity. But the disem-
ployment of 20 to 25% of the
more
than
900,000 steelworkers of the
country
would
suggest
serious
maladjustment in a strategic sec¬
tor
the
of
economy
the
even
inventory problem
gible.
was
where
negli¬
.
longer
adopted."
industry cannot
its inventory
the rug. It has
If
my
are
analysis is cor¬
between
capacity
rect, the maladjustment
agriculture's productive
and
outlets
market
and
between
plant capacity and labor force in
the
steel, automobile, and some
other important industries cannot
be
corrected
within
that
time
Conditions in these strategic
will probably get worse or
difficulties become
least
at
I
What We Did in Last Three Years
1954 and 1955 in correct
perspective, it seems to me neces¬
to take a good hard look at
what we were doing in 1951,.1952,
sary
In that period we were
and 1953.
mounting a substantial mili¬
tary offensive in Korea half-way
around the world, (2) accumulat¬
(1)
store of military "hard¬
apparently imminent
World
War III,
(3) building a
"broad industrial base" for fight¬
ing a vast
ware" for
ing such
high
an
war
a
state
indefinite
the
or
maintaining a
preparedness
of
over
main¬
and
future
fabulous
degree
of
that
success
attained in this four-front op¬
we
eration
measures
readjustment
size
the
which
the
of
has
now
to
effected.
be
duction
But its January
pro¬
100,000
below its
schedule and February
was
planned
has been further cut.
Detroit has
been declared
area
a
crisis
of
un¬
employment.
The significant issue is not that
inventories
in
January were not
of crisis proportions but the nature
of the forces that had caused them
to appear; not
the ratio of inven¬
tories to
January sales but to pos¬
sible May, August, and November
buying levels.
(2) This brings me to my sec¬
ond point, namely, that I am less
sanguine than is the Economic
,
Report
as
to
the prospect for
a
comments
business
made
are
the importance
on
as
to
But
the
the press
the
was
hisjjseconomic
Martin
about
consumers
tional
was
me
more
pur¬
now.
Products
In¬
Mr. Terborgh
....
.
ments in
encourag¬
equipment and
new
new
should
ing
programs.
Or
policy be aimed at increas¬
spendable income avail¬
the
able
the
to
of
mass
consumers,
have not merely reached
We
truce
in
Korea
a
and
pushed back
the threat of World War III, and
produced an extravagant surplus
of
types of hardware which will
be
never
used
and
adequate
an
scale of supply for those that will.
have
We
at home
boast
and
also
those
during
supplied current
years
tion
so
that
made
butions to the
31/2
consump¬
our
they "never had it
have
under
Open
citizens
good,"
so
generous
contri¬
well-being of
many
other countries of the free world.
Beyond this, we have effected
pansion and modernization in
ex¬
Mr.
Market
the
grasped
to
Martin
and
Committee.
opportunity
the
They
which
them—deplorably late—
of
fending off the latest threat of
inflationary danger but stood by
promptly to see that that check
did
not go
far
so
deflationary
both
these
as
to produce a
danger..
I
believe
agencies, working
in
respect and cooperation,
may be counted on to play their
special roles helpfully in the
short-run readjustment period as
well as the longer-run program of
mutual
economic
stabilization. |
Turning from debt management
to
the taxing and spending as¬
pects of fiscal policy, we face the
industrial plant to the point where
question of the current lapsing of
special Korean War taxes and its
capacity is at
effect
many
our
points in tem¬
on
1954
business
prospects.
porary excess,
The Economic Report lists this
a
where many farms
over-equipped, and where
support factor to both
as
consum¬
and
modernization has taken the form
ers
of
such
period
of
the
Our railroads in this
have completed
dieselization
life
of
which
locomotive
a
process
lengthens
equipment
and lowers costs of operation and
future maintenance to a drastic
extent.
The impact of these changes has
not yet been fully measured but
is beginning to reveal its magni¬
tude just as the reduction in mili¬
business spending under
recessionary influences as
may be developing in 1954.
This
it undoubtedly is in a qualitative
but just what quantitative
it will have at strategic
points in the economic process is
sense,
impact
open
the
to debate.
subject
It has been made
The
in
issue
will have to stimulate
consum¬
ers' income and increase the pur¬
chasing
of
power
people.
.
.
.
This
the
American
be
can
accom¬
plished best, at this point in time,
increasing
by
the
indi¬
personal
vidual income tax exemptions and
permitting
excise
taxes
automatically on April
by
to
1,
lapse
and
going
even
ducing
further
excises
and
re¬
than
the
automatic provisions permit."
Colm
Mr.
more
of
pointed
these
Do
was:
present tax
abatements operate more in the di¬
rection of stimulation of business
of
production and consump¬
tion but pointed
on
that,
"The President's Report
,
empha¬
sizes the needs to stimulate
ness
busi¬
It fails to demon¬
strate,, however, that present taxes
are
actually obstructing business
expansion or that the proposed
crease
would
that
substantially
investment
conditions.
In
under
.
fact,
business
it points out
investments
have
high in the recent past
spite of the high level of taxes.
.
.
up
before the American people.
of
congestion
Our with
in
consequent
the
curtailment
of
while
we
in
ceed
how
see
getting
well
full
we
Besides tax
stering of
must
buying
lower prices. Rais¬
or
this
at
wages
time
tends
tax incentive for
be
stepping
up pro¬
ineffective unless
the producer is confident that he
consumers
for his prod¬
ucts."'
Colm
computed
tional
income
to
lower
income
brackets
the
be
the
addi¬
middle
and
from
the
needed for
isfactorily progressing
$20 billion!
to
discourage full-scale employment
at the
time that it buttresses
same
buying. Lowering prices
consumer
facilitates the maintenance of vol¬
sales, but at the
ume
ations.
Between
this
Charybdis there is
time
same
tempts producers to curtail
oper¬
Scylla
and
chan¬
nel where costs of production are
fully recouped and consumers' in¬
comes
the
sufficient
are
whole
five
output
But
open
command
to
at
prevailing
great deal of
a
in
dual
this
structure
come
an
has
mis¬
price-in¬
grown
in
up
of inflationary boom
great deal of revision will
years
and
a
have to be worked out before the
economy
will
be
adjusted
to
changed and still changing condi¬
tions
and
stabilized
ductivity for
that should
This is
than
a
lie
am
less sanguine
Report and
President's
considerable
the business
lieve that
few
of
segment
community who be¬
present troubles or
our
forebodings
a
ahead.
why I
the
than
at high pro¬
brilliant future
the
will
be
months.
If
within
over
the
complex
shifts, adjustments, executive de¬
cisions, group negotiations, prag¬
matic
tive
compromises, administra¬
adaptations, and legislative
authorizations have
out
so
ably
add
to
as
consistent
been
up
to
and
a
worked
reason¬
constructive
by the end of 1955, I think
system of free enterprise and
democratic
giving
government would be
pretty
a
a
sat¬
economy
at
of
account
good
itself.
(3)
ly
The Economic Report clear¬
the possibility that
envisages
the
situation
present
further
deterioration
early recovery.
"Impressive
which
It
as
may
show
rather
than
(p. 72):
says
are
the
factors
justify confidence that the
current
settling or business ac¬
tivity will stay within relatively
narrow
limits, it should be rec¬
ognized that periods of readjust¬
result in cumulative effects
Mr.
power
about from higher la¬
bor incomes
ing
abatement, this bol¬
consumer
come
unless producers expect an in¬
in their markets. Even a
will find
suc¬
prompt
market absorption of the product
of our already expanded and mod¬
ernized plants—and farms.
ment
duction will
im¬
and
Production will not be stepped
what would
market—-
besides
labor-saving and the reduction
jobs in semi-automatic plants.
Perhaps that could wait a little,
in¬
present
been very
in
that,
at
expansion and investments in
equity capital.
changes
maturity.
of
interrela¬
tary drain is beginning to be felt. enterprise and economic expansion
expiration of war rates on Jan. 1
The President puts this matter or more largely toward the main¬
and from additional reductions in¬
succinctly,' but in my judgment tenance of the purchasing power cluded in the Administration
pro¬
too mildly, in an
opening para¬ of consumers and
the prevention gram at only about $2 billion and
graph of the Economic Report. He
says:
"A great opportunity lies
forgotten
our
tion
reaches
as
de¬
total
the
noted
crease
inquiry
hearings, par¬
ticularly in exchanges between
Senator Fulbright and
Secretary
Humphrey and Chairman Martin.
earlier
we
the
of
crop
dip in
a
trend
provement in quality and the ap¬
peal of novelty, it aims strongly
end is
maintaining prosperity and
building an expanding economy,
growth
years
prices.
chandising effort and investment
ment
be
matching
expanding economy?
just entering
baby
pop¬
remembered
As to modernization it should not
and
an
growth of
be
must
are
the hope that such ac¬
tion will create job opportunities
plant, in
marketing, price-making, wagepaying, as well as relevant mer¬
manage¬
it
ex¬
"caught
the need to pro¬
on
pression
ing corporations to make invest¬
policies, fiscal
monetary.
It gives
but a
shadowy hint of the processes of
money
and
operation.
have
we
scanty
Planning
investments
such
in¬
and
Burgess and
to
already pointed to the
to. which
the
further discussed
Allied
tent
we
Association, and
emphasized
the importance of measures "fa¬
vorable
to
private investment."
Mr. Ruttenberg, starting from the
premise, "We cannot have a dy¬
namic economy without new in¬
vestments," posed the question:
"What is the best way to stimulate
volves Government
Mr.
incentives
population
phil¬
consumer
even
was
and
others.
shortcoming of the Report that
devotes itself primarily to the
that
profit
the
reported him,
businessman
of
chinery
tion Big Switch." As to the mature
operation
of
over
expansion
the enlargement
or
the
by Stanley Ruttenberg of the CIO,
by George Terborgh of the Ma¬
will-prove to be "Opera-,
to
plant
that
stitute, Gerhard Colm of the Na¬
seems
buying priority
to
modernization
re¬
as
interpreted the Secretary
The issue
"Operation Little Switch" whereas
came
bor demand.
1953.
the
to
consumer
stimulus
ulation,
of
net effect of the Economic Report
is
to
portray- this ^situation as
this
encouragement
chasing power but, when pressed
by Senator Fulbright, "reluctant¬
ly" gave incentive to the business
enterpriser priority over measures
to improve the purchasing power
If I may resort to military ver¬
nacular, I would suggest that the
of
in
of
vide for expected
Chairman
Report
it
that
phasis is laid
concerned
Shortcomings in the Economic
phase
basic
osophy. "Production is the goose
that lays the golden eggs."
But I do want
the
operation,
is
up" oq planf .capacity during the
last decade
or
so.
Where
em¬
keynote
transfer this enlarged and now
the
analysis
own
my
I have
and
capacity over
higher welfare of our
that the President envis¬
ages.
It entails a very complex
process of making price and in¬
come adjustments, channeling tax
flows, and scaling public spending.
it
stimulation
lief
people
of
the
recov¬
of the consumer's role.
released productive
a
ex¬
economic strategy for eco¬
stabilization and recovery
1954 would give maintenance
stabilization
long-run
emphasize
Senator
emphasize that it is not simply
blueprint or formula operation
in fact it
an
ing
deny for a moment the
insatiability of human wants or
the magnitude of the business op¬
portunity which still lies ahead of
into
as
that Mr. Humphrey made qualify¬
I do not
to
that
wages
commitments
materially reduced at the very
time that capacity for supply has
been materially increased.
a
this
to consumers, who then can
buy the enlarged product. A read¬
ing of the transcript will show
alle¬
is
to
regard
sufficiently favorable for him, he
will give more jobs and pay more
ent cost and income arrangements
American business.
from
answer;
enterpriser. If conditions
sat¬
I
nomic
Personally, I am quite reassured thus enabling the American peo¬
taining the lead in scientific and
engineering development, andi(4) as to the course which this Ad¬ ple to buy up the product of ex¬
ministration has blocked out" for
maintaining a standard of living
isting plant and equipment and
for the masses of our people higher itself and has indeed beeri follow¬ encourage
expansion
to
meet
than that of any previous time or ing during the past year in the ever-widening needs?"
areas of debt management
under
any
other country.
The almost
His own answer was:
"If our
in
under
and
where the
resiliency of the market to pres¬
ad¬
and
before stabilizing
justments have been made
full activity restored.
apparent
To get
should
While
treme comparison, it must be evi¬
dent that the reasonable inference
sound
and
ery
point
a
question,
Secretary
the conventional
«
Consumer Buying
gave
strategy of both short-run
more
claiming it could sell almost
many cars and trucks in 1954
sweep
been
as
recommenda¬
Administration
the
of
tions
the
if
especially
labor-saving mechanization and
push-button factory operation to
an
extent which materially
changes the future picture of la¬
problem
as
.
.
credit
to
been
has
need
and
extended
been
this
business
point where the keen¬
are
The automobile
much
viated
a re¬
and enjoys great basic
strength
the minor readjust¬
ments under way since mid-1953
is likely soon to come to a close,
To
little in
a
durables has
a
the
of
ness
prosperous
boundless
full
realization of the fact that nobody
has yet made a dime by selling
America short." He is also quoted
as saying that he expects his com¬
pany to operate at about 80% of
capacity in 1954 and that this will
be
future)
isfied to
highly
is
today
economy
Humphrey
consumer
of this idea occurs in the
closing paragraph of the Report:
"Our
primarily?
of, military preparedness.
Beyond that, consumers' needs for
housing, automobiles, and other
prise
areas
rather
And
sus¬
a
national
advance
Administration's
the
action
to
of
multaneously with, or
point, the President says,-in his
opening statement: "Our economic
growth is likely to be resumed
during the year, especially if the
Congress
strengthens
the
eco¬
nomic environment by translating
into
attention
improvement
Priority to Maintenance of
are
living standards." As I have sug¬
gested, a full analysis would add:
Completion of industrial .prepar¬
edness has been accompanied si¬
spontaneous upturn of business in
the
next
few months. On
this
span.
farm commodities."
This
tained
Inventory Trimming; !
cotton, corn, and other farms have
its
of
more
found necessary, be beamed in
the
one
or
the
other direction
Thursday, March 4, 1954
.
further recovery measures, if they
now
sible for the United States to turn
Canent Recession Moie Serious
should
Collaterally,
.
.
them.
always carry risks
with
Continued imbalance could
sector of the economy
another.
as one
reacts
Such reactions
are
u^on
part¬
ly psychological in character, but
are
nonetheless
real.
they
.
.
.
Whether they take one form or
another, they could become im¬
pediments to smooth adjustment.
To
avoid
quences
ties
the
that
adverse
existing
conse¬
uncertain¬
might generate, the Govern¬
should, and can, make clear
ability to face them and to
ment
its
take1
the
steps necessary to
deal
with them."
The ensuing discussion of "Path-
Number 5304
Volume 179" "
.
.
The Cojnmercial and Financial
.
pected, leaving the problems of Continued from page 12
other lines of business still to be
faced.
,.* •
The President's Report calls at- How to Stabilize
tention (p. 104)-to a great backlog of "tens of billions of dollars"
Income From
worth of public works "needed to
keep abreast of the growth of the
economy and to eliminate within,
say, - the next decade, the accu- government a bale of goods which
mulated need of highways, to the index in value, the credimprovements for extensions or is equivalent number of according
predom- in a recovery movement once
sta- convalescence has got under wayt
bilization policies or basic eco- But they have very limited powers
nomic reforms such
as
revising to check a recession and virtually
the tax structure, correcting the
none to initiate a recovery. We
farm support program, providing
may have full faith in the intention
aid to housing, broadening social
and ability of our Federal Reserve
insurance, systematizing the plan- System to see that business has
ning of public works, and improv- an adequate supply of money, at
ing trade
relations with other all times but should not expect
to Strength" is cast
ways
inantly in terms of long-run
proposals are per se, they are to
only the most limited degree cal¬
culated to give first aid if a nearrecessionary
term
mnnnfjpmpnt
/K\
Of
hips
Trpasurv"
thp
schools, hospitals, sewer and waSCnoOlS, OOSpitaiS, sewer ana wa-
fpph-
ter facilities, parks, forests, and
elements
of
the
public,
pon-
pan
niques of the Treasury" can con
tribute to long-run stability of
the economy and by their competence and flexibility can see
that the very large funding operations of the Government shall
not become a disturbing factor in
emergency
other
appear.
ihn
the
Xf
price
ment
figure
Gov-
\
and somew at vulne ab e eatu
m0re than about oneJ ne
f
third of the planned drop in Fedor another. While the terms o
eraj expenditures can be offset by
hese mortgages have been greatly state and local spending in the
Disposal of
growth of
rigid
that question improved with the
1 o n g-t e r m amortization, rigid
at the proper t»"8-term even these terms in
amortization,
adherence to
that
Ml
.
^
wxxx
avuvin
^1°1n]f„a,n
Well-timed
the means for
and that
recession and achiev¬
.„6
ing recovery are ample. One paragraph on the next to the last page
of the Economic Report sets this
heading off
ponement oi tnese payments dur
mg 3; peri0(* °f resources income
permits current reduced
to be
weapons at the
tne
_:_A—j
cbases 0f current
...
administered by the
System, debt man-
controls
lmnf
Reserve
eral
Governments
app e la
commoniy
quite
apart irom
new
or
,
new legist t o
appropriations
oy
tne
^apfinnnCinch^rtLation
InhUrTvorks^ accelerated denreciation for defense
plantef and the
need to be
'
new
some
"
thP
!ieek
Oihhoritv
business
'
raises
.
as might
second, third, or
deterioration
of
this
year^be
successfully combatted by
.
yet to be
it
sure
two
Can such further
(1)
develop m the
fourth quarter
-
addi-
R reauires "
declaration
questions:
,
^hft
y...
This
.
will nromntlv
Congress the
from the
ffonai
-
increased to cone with
economic devetennTent
Ad^nfstration
a^io.n
inaugurated? Or
that
legislative
)• 1S
action
needed to implement even a prop-
erly conveived
policy
grant of
and properly timed
the Executive
of
gress
(or the
requested new powers)
i^specfafse Son
that
elaborate
theG Con-
of
without delay?
I need not
this
issue 'before
*
.
.
I
shall merely examine
briefly
sPecbac weapons of the
for-
Srasranh^iust quotea irom
paragrapn jusi a^oted^from1
Economic Report and make
■
comment
on
their
recovery
the
tne
brief
po-
tentials.
"Credit controls adminisby the
Federal Reserve
System" have great power, vigorously used to damp off a boom
and considerable powers
to aid
(a)
tered
' *
in
at
purchasing
response
home
with the same
power
In
interest,
assurance.
to this public
probably some domestic corpora-
another
national
government,
it
offer
prospective
clients some-
savings would go abroad, there
to augment the demand for Amer-
problematical, but if it should de-
gand ™'ly ^30^ who ad =
ld get all of the gain if its loan exports,
ters sleepmg tablets to get people terms of teade had worsened Marsico Heads Fund
nothing need be done-only to M'teTms Vtrade* had im!
Comm. in Campaign
the market for goods and services find that the danger later bursts proved. It is worth repeating,
-to the extent that they would "P0" an unprepared public."
however, for the sake of emphasis,
in fact snend this money in the
And repeating my own words that such intergovernmental loans
.
face of such lack of profit incen- at a bankers' meeting last Sep- would fall outside the scope of the _ Ckujes K. Marsico, partner of
tiye or fear of partial or full dis- tember: "It is my conviction that purchasing power plan for pri- Merrill Lynch; Pierce, Fenner &
might have. No no one can scare a sound economy vate loans.
Beane, has Joined the Exchange
possibili- into
depression and that PollyCommittee of the 1954 Develop
anna cannot keep business errors
Free Exchange Rates
ment Fund Drive of the New York
aiready
and Government subterfuges from
The reader will have noted that Arthritis and Rheumatisrn Founthat tax relief facing an ultimate day of reckon- the purchasing power plan would dation, it was announced by Wilwouid be broadly tag. We stand a better chance of minimize the significance of an liam Holmes, general campaign
has
J - - 1
AA
the hands of businessmen
3r by^ht Execu?rvWeershoPuM
•
■
agricultural consumers more
recommended
newly
offensive.
(e) "Taxation" by leaving
invested
frightened but we should be alert, purchasing power it had received, velop it is unlikely that it would
And the watchman who gives a measured in terms of its own price be carried to an unhealthy length,
warning to the people in due time index.
for indeed much of the additional
specjal weakness and thus have
gQme defensjve vaiue but not decisive fire power for launching
an
and
' so that they can protect their inIf the suggested solution were
terests is serving the public more agreed upon, the creditor nation
permits
is
Debtors
thingitwas n®v©r'
fer before - assured purchasing
T final consequence then-one
not explicitly stated 'in the list
of three—might be a lowering of
the propensity to consume, because saving might become .perceptibly more attractive to many.
Whether this increase in the desire to save would develop is
Tt
tnan
as
be possible to negotiate one
lled ln some manner to purchas£f> PeXeiy outsWe oTTheToposed plan for private loans. For
intergovernmental loans the division of gain or loss, should trade
terms change, would be the main
bone of contention. One possibly
feasible solution would be to have
the own currency the repay with
borrowing nation amount of
its
I
nf
wnicn
extent inhibited
nor receive a
mortgages
in
companies, for instance, is
no doubt to some
officially a national
government could neither make
ad^udgT to a
President to%ary the terms of °f, c°nsiderable
Power t.0 steI" I would repudiate any suggescarrvine Federal in- retreat
Ki
*
offensive tion that that I have said here or
^uarfce aDart fram the wide ex- w.eapon capable of opening a new elsewhere brands me as a
Sn 'of ttat ^^ShoriWecom- advance'
.
P^Phet of doom" or allies me
ihifRpnnrt
inuinripq
(d) "Administration of the bud- with some mythical "fear deal."
S
Lctratinn
Tp hnHppt ^t" also would permjt tactical To quote from a distinguished
mni: i
fiPvihiHtv" maneuvers that* Would bring fi- member of this committee (Seno
y nancial reinforcement at points of ator Douglas): "We should not be
:
ance
Although
would'^U.
detensive weapon
Not a "Prophet of Doom"
the Treas-
agement techniques of
enroll **C 1^v®sb*ierd:s W1^h as~
at
Purc^asm^ P°werNothing more need be said here
about the first two of these three
consequences. As for exists at
it is probable that therethe third,
present a strong latent demand
for ways to invest a rising price
sayings
some ^ ^ destroy ^ with
^ assurance that
values. The policies from toinsurbuy
endowment willingness
Creditors
needs and min- "
manufacturers
.
,
.
were
weapons against the current re->
Qessi°n or could contribute to anupturn this spring, summer,
or
Fed- j^zes The"" strain" on'"merchants uPturn this spring, summer, or
credit
includes
It
formidable.
demand for
An intensified
,
«ua/
Government is very appbecj funy to maintaining pur-
of
disposal
£
protected loan under tions, and possibly some domestic
p!an' !n actuality it could by governmental units as well, would
resorting to a legalistic stratagem respond by issuing bonds with
create an of itself. Upon in- This might "well furnish an oplnethis0IreIStirbelieve dePendent agency technically this guaranteed purchasing power.
K are »und , rnce ved for agency could be 'conferred the portunity on the part of those
th y n
k health of agriculture rlght of any cltlzen to contract institutions that cater to marandthe^long-run stately of tte
W"h Citi" ginal sa7er.s' eg" iniUraT C°m"f
T6d
,
how thev zens of other natlonspames, to increase the volume of
^ formidable "senai
In case one nationalJgovernment their business, for institutions be
it would to
to tne tormiaapie_ arsenal of
pnntraet
ln.n with possible for such
obligations can prevent foreclosures and the forcing of prop-
forth:
"The arsenal of
The
ot
next two years."
"The newly recommended
ness
recession
mav
agricultural supports" are, except
ess rec<rssl0n
in thp racp nf wool
aimPH at
aggravatingon factor.
.
nvpr-Utimnlativp
moratoria
such
j^ri"g f.
will have an answer
decisive
(3)
of the nurcharine
f. p , •
auifp an'narpnt that sharps'nf
stock and other eouitv
lacould not be given a
antppd valnp
p
F<;deral
ave
.
Government
Assuming
t is an importan
be enlarged,
_
-
Weapons at
scone
,
ofour'presentsituation t atgrea
against a numbers of people are
eavily
m 19o4 be committed under farm and city
mortgages and that many of them bkeiy tbat
preventive
measures
progressive downturn
brought into use.
(2) Less opposition to flexible
(fluctuating) exchange rates.
capital exports come un-
by remembrance of the fact that
the inflation caused by the way
World War II was financed caused
cautj0n because of the fact or the protected loans, for officially insurance policies and U. S. Savr
£ear
jegg exuberan^ boom con_ there would be four contracting tags bonds to lose some of their
ditions. Mr. Freeman of the State parties for each protected loan: real value.
0f Washington discussed this issue a debtor, a creditor, tjhe governIf the into operation, it is like¬
put purchasing power plan
most abjy jn fbe panei 0f Feb. 10. ment of the debtor, and the gov- ly that many would wonder out
He conciuded: "It does not seem ernment of the creditor,
loud why savings could not be
dent s suggestion that this power
week by week.
On
what week would
by day and
Not all
ma-
consequences:
(1) More capital exports.
Exports
directed tobut with works, Federal anycreditors left debtors, discretion
public some locally of way be or to the for such
SUpp0rted
ajd^ ^his will sometimes require freedom might well result in coniocaj wiiixngnesS to increase local tracting governments bearing untaxes as Federal taxes subside necessary losses.
hope the Congress will give and to vote bond issues at a time
Nor could national governments
co side at n
the P es - when citizens are disposed to formally make or receive such
and I
early
magnitude . . . is not a realistic
concept of public policy. It overlooks the need for constant vigilance
and preventive action^ day
what day or in
Capita,
tho
"Anthnri+Tr
until
aloof
stand
can
some
(
(c) Aut o ty of t e Preside t
to vary the terms of mortgages
index or unemploy- cairying Federal insurance
is a
reaches this or that really important defense weapon,
The thought that
jor
debtor's country had sustained.
Unprotecte(,
proposal if adopted would
probably have at least three
Operation Big Switch is to be
carried through successfully,
•
Quite a slice of the nations reLess obviously, some debt inmaLgement sources which have been flowing struments could not be registered
into the military build-up and the to receive purchasing payments to
power procompletion of the "broad ^ ^ tection. The dates of cq
indus- be mgde by debtors
^ base„ ^ nee<J tQ
no(. Jn
o
112):
Consequences of the Plan
The
„
the money market but be
adapted to the needs of other borrowers and the availability of
monev
Even the most skillful
does not require one
techniques of debt
This T find a littln hard to reccannot spark recovery if producer
-"■J?15 1
a
1-2 V>
nsvcholoev or consumer behavior
oncile with the President s stress psychology or consumer behavioi
ernment
Foreign Loans
itor s country, to any loss the
& Luumi), iu any 1U5S u
es^eThe Report stresses heie as
we^ as elsewhere, the important
Pa*"t
states* municipalities,
and other spending and bonding
well anits have in this regard. II
This is consistent
with the Administration's evaluaition of the present situation as a
mild
inventory
adjustment. Of
his recommendations for action by
this Congress, the President says:
(p. 76): "It is not a legislative
program of emergency measures
-'■for thp
current situation clearlv
should
string."
«r>pht
a
51
Purchasing Power
dramatic result from "pushing on
Excellent though these
countries.
(1027)
Chronicle
of sud,, mcome
employment they
Qne
can
apprajse these
with
curacy
but j bave
pressed m
belief
and
tieg
t
cQn
a
any
,
ex-
consumers
speaking, more efficacious in our
checking recession before it gets
than out of hand and of initiating real
rej|ef
producers and most ef- and timely recovery measures if
ficacious if concentrated in the we unshrinkingly dig out and face
j0wer
income
brackets
where the facts, however unpleasant,
spending pressure for necessaries
«\ye are treading fresh ground
of life is greatest.
No policy-making or administrapresent
F
ac_
economic situation
^
important objection to fluctuating chairman. York Campaign,
exchange rates, for it protects The Ne
debtors and creditors from being set a goal of half-million dollars
damaged materially by rate as million national goal. The funds
changes:
debtor would have to $5 its share of the Foundation's
New
a
repay
more
money
than he had will aid the 500,000 New
originally planned to only under who suffer from some
Yorkers
form of
rheumatic disease, and will be
Foundation's
clinics,
which
"Public works" seem to me tive group has ever had practical inflationary conditions
gento be held out.ia the Eco.nomic experience in getting so big an erally make money more easily used to support the
Report assolution to more in the we are, and with such institutions obtainable, . whereas a creditor four-point program al establishing
promising a recession economy as oyrs, constituted as
of
of
,
.. .
problem than can rightfully be as we have developed, down from wouta receive less money than he and supporting arthritis
expected of them. We cannot cure a highspeed (but not runaway) had originally expected only if promoting research, rehabilitation
unemployment in the textile in- boom
onto a steady level of each unit of his country's money of the arthritically handicapped
wav
dustr.y of New England by.in the
buildmore
power
dams
'normal prosperity.' The burden sbould become worth more than and supplying information to phy^ worfband the public.
who would
"Continued support of the
its
of nroof is on those who are so .... .
sure we can do it with only an
^ad en
sicians
reiatively immobile both by rea- almost painless process of gentle
Therefore those
preson
0f training and experience deceleration. Our chance of sue- fer to allow supply and demand Foundation," Mr. Marsico said, "is
and family and community ties, ceeding will be increased if we to determine foreign exchange necessary if it is to carry on
If a public works program keeps do not underestimate the diffi.
sho'uld welcome the nnr- nrnmm nf aiding those now sufthe construction industry reason- culties of the problem or over.
...
ably well occupied, that is about estimate the efficacy of the availall that could reasonably be ex- able means of control."
make flexible rates less hazardous, and of
ing
Rochies.
Labor
populations
are
p
program of a d^ g
chasing power plan, which would fering from this form of disease
eventually finding a cure."
52
(1028)
The Commercial and Financial Chronicle
Continued
jrom
marriages
6
page
during the
War
Investment
Policy and the
1939
Economic Background and Outlook
25%
year,
our
161" million
to
about
in
14
in
1953,
or
ing
Because
years.
money
torerunner
of
is
traditional
a
stimulate
depression.
dictions
to
of
recession
have
And this
served
important
speculative zeal. The
market, moreover, has
dampen
.stock
jraeeded
with
briety for 15
both
to the most
the outlook,
This
long-term, namely
the creation of
politicial climate
a
it
has
congenial to the growth of busi¬
so¬
ness
as
It
years.
and
investment
defies
corollary, the behavior
-of
commodity
prices
certainly
gives no evidence of forced liqui-
ceive
-dation
a
the
the
or
of
-onset
imminence
depression.
of
While
the
there
Jbave been wide variations of price
jnovement among
jrriodities
buyer's
■a
the
-as
fee
impact of
may put some
finished goods prices
year
firm
the
should
it
progresses,
that
tone
of
commodity prices in 1953
i?as carried
to
com-
market
on
noted
•overall
while the
and
pressure
individual
into
the
current
year
imagination to
Though
incomes
personal
3have trended downward in recent
jraonths
cline
possibilities
expansion
itself,
con¬
namism.
in
tries
and
continue to de¬
may
moderately
in
the
months
our
friendly rather than hostile
to
legitimate
and
constructive
private enterprise. It is clear that
business
and
Government
leaders
cooperating closely to produce
are
such
climate.
a
I
mention
need
only the recent statement by the
management
that
the
of
General
Motors
plans to spend
billion dollars for plant expan¬
a
sion
company
and
improvements
welcome
most
the
over
the surprising and
Bethlehem
Steel
dividend declaration; other favor¬
able dividend announcements and
statements
and
the
by
business
vigorous
and
leaders;
sanguine
ahead, nevertheless they are at
tiistorically high levels. The-de-
tone of pronouncements by major
anand
government
for
consumers'
feuttressed
by
income
well
as
this
goods
high
level
the
as
is
of
immense
liquid assets in the possession of
they
the need of
ing
eral
(4) While business expendi¬
tures for plant and equipment and
inventories
be
may
somewhat
lower in
1954, there is as yet no
evidence
that
they will suffer
than
*nore
moderate
a
decline
and that
they will not still be high
by any standards
those of 1953. Moreover
measured
as
•except
the probable
local and
if
State
deemed
governments and,
by
necessary,
Federal
^Government aid to such projects.
(5)
This
brings us to another
jniajor positive factor in the out¬
for
official
of
under
years
the
suspicion and
time should pave the way for what
may
be
to
come
Eisenhower
known
the
as
Boom.
ard
living,
an
ulation
is
boon.
a
increase in
disaster
a
not
serves
mists
the
is
there
to
no
discovering
now
frontiers of the mind
The
that
are
massive
varied
and
research
ac¬
petus from the exigencies of War
which
and
forward
It has
we
a
to be driving
accelerating pace.
appear
at
an
recently been estimated that
spending about $4 billion
are
year
fidently
term
research.
on
a
can
anticipated
population.
Stock
increase
there
has
dence
of
past
term
is
of
public confi¬
in
reflected
so-called
the
in
our
Situation
low
earnings,
prices
the
risk
of
for
concerned,
is
inflation
of
the
as
long
stock
common
the
frozen
into
rate
cor¬
If
abnormally
securities
in
our
economy.
1939
adjust for the decline in the
we
purchasing power of the dollar
since
1935-1939, the Dow Jones
is acutely conscious of the
terms of the purchasing power of
the
dollar
and
the
abnormally
Industrials would currently stand
at a level of about 145.
This in¬
ot
high yields provided by good
cidentally
look.
Surely
the
Administration
danger
business slide, not only to its
political fortunes but to the
a
&vvn
welfare and
defense of the
termination
to
vigorously
counter-deflationary meas¬
.with
ures.
what
At
vention
Xcnow;
move
point active inter¬
might take place I do not
but I suspect that plans
^already
set
will
off
move
of
the
as
related to the yields
high grade corporate bonds.
coun¬
try. We have evidence of its de¬
stocks
mon
com¬
My
firm
many
years
has
for
confidence"
which
ratio of
yield cf Moody's 200
the
representative
the
yield
porate
of
the
stocks
common
Moody's
bonds.
the
expresses
Over
AAA
to
cor¬
the
past
that
is
25
-drawing boards if unemployment
years
xeaches
the
naillion.
Aside
average ratio has been about IV2
to
1, that is the yield of good
level
of
from
have
xneasures
four
to
five
this, positive
already
been
adopted. In
line
.monetary
the Adminis¬
supplemented in the
tration
with
its
flexible
policies,
has
past six months the normal forces
making
for
easier
condi-
money
:<7*ons; and it is likely to continue
*.its policy of monetary ease so
long
"ss
the
business
downtrend
con¬
tinues.
the
easing
the
profits
irnd,
tax
tax
burden.
has
been
more
important,
Sustaining
consumer
The
excess
eliminated;
as
a
factor
purchasing
power,
individual income taxes
trave been
reduced.
Other con¬
structive
tax
measures
are
in
prospect; for instance the proposal
€o extend the
principle of accel¬
erated depreciation
might stimu¬
late the purchase of
capital goods;
and one of the most
important de¬
velopments of the past 20 years,
far
as
the
stock
market
is
stocks has been about IV2
the
taxable
yield
bonds.
of
As
high
an
grade
example of
year
15%
the tnird, would
greatly
the
the first quarter of 1942, common
stock yields were 2V2 times
grade
bond yields.
remained
This ratio has
consistently well above
average ever since;
and in the
last quarter of 1953 it was 1.8 to 1.
Moreover
from
a
this
ratio
has
derived
persistently low dividend
payout. For v/hat it may be worth,
not by way of
prediction, on
and
the basis of 1953
earnings, a nor¬
mal payout of such
earnings and
an
average relationship of com¬
mon
stock
yields to prevailing
high grade bond yields, the Dow
Jones Industrials could sell at 400.
ratio of the Dow Jones Industrials
outlook, the dynamic character
our
economy
from
the
derives
rapid
of
principally
increase
of
our
population accompanied by
steadily rising standard of living.
As
a
result
of
the
sharp rise in
might
the
view
and
occur
the
the
investor
keeping
in
to
major
a
common
stock
equities
of
part
fund
of
ol
with
average ratio of 17 times in the
1935-1939 period.
These ratios
re¬
continued low state of in¬
a
vestor confidence and the absence
of
speculative public participation
in the market.
derlying the stock market is the
great increase in book values of
representative common stocks
since
1939,
cf
ness
net
the
a
which
reflects
retention
in
the
of
busi¬
major share of corporate
In that period the
earnings.
book value of the Dow Jones In¬
not
reflected
the
expansion
base
full
degree
of
is revealed
the
of
earnings
by the fact that
the ratio of market prices to book
of
the
Dow
Jones
trials declined from 146%
to 125% in 1953.
It
Ishould
under
the
be
cabinets
under
conditions
A
Italian
of
American
equities
Some
costs
about $425.00
Cathode-ray^ tubes
are
being manufactured in Italy but
glass blanks are being
imported from the United States
Holland.
or
Italian
moment
originate in Milan and
exclusively films. However, it
are
is expected that in the near future
live
programs
and
studios
will
mental 500
Oslo
days
week., It
a
Switzerland.
located
on
television
day, three
a
is
one
to
The
five
of
all
cover
transmitter
Uetleberg
right outside of Zurich
is
Mountain
and
covers
with a population of about
million-and-a-half
people.
area
One
approximately 500 watts.
studio is presently being used
for
all
they
of
their
of
are,
broadcasts
and
using oc¬
casional films as well. Equipment
is a mixture of Swiss, English and
American.
So
course,
far
receivers
Most
of
of
the
there
any
are
no
television
consequence.
receivers
have
been
for TV in the
is
but
small
1
in
KW
ex¬
Stockholm
few receivers outstand¬
very
ing. One
or
two larger companies
are
search
grams
color
on
television.
spasmodic,
are
Pro¬
mostly
filmed and broadcast only a very
few hours per week.
Denmark
the
nation
CCIR
small
a
is
broadcasting
on
European system from
studio
in
including
frame
slight
borrowed
Iconscope
equipment
cameras.
A
is
when
turned up in
flicker
frequency
25
all
frames
per
receivers
the
are
brilliance, there is a
which, of course,
does not exist in the United States
because of the higher frequency of
30 frames per second. On
count,
this ac->
European
television
manufacturers do not
ceiver
quire the
re¬
re¬
high accelerating volt¬
age that we
do for
receivers.
our
They can -therefore be made with
less expensive components.
Generally speaking, the pro¬
graming in Europe today is about
equivalent to what it
was
U.
in
S.
1947
A.
some
that
there
commercials.
uli
time
it
is
have
than
Also
middle
class
the
or
excep¬
today
no
Without these stim¬
likely
will
are
in
1946
with, of course, the
tion
European
much
a
that
in
the
tele¬
slower
United
there
is
no
large
Europe who can
buy these receivers. Therefore, it is
logical to assume that from an eco¬
in
nomic
standpoint, even with lower
taxes, it will take considerably
longer for television to become a
generally used form of entertain¬
ment
and communication than in
the United States. It must be
kept
in mind
that, whereas the cost of
a
television
receiver
represents
less than an average month's
pay
in the United States, it
represents
almost eight month's
pay in Eu¬
rope.
Copenhagen,
500 watt transmitter. The
uses
the
States.
a
station
future.
near
Europe
growth
Sweden
There
near
Overall European TV Scene
vision
imported.
perimental
experi¬
an
transmitter
1,800 foot mountain. The
Norwegian
Government
is
ex¬
pected to provide additional funds
Since
experimentally
planned
has
watt
on a
over
first
the air two hours
stations
presented
are
Norway
country
second
Switzerland's
of
be
Switzerland
station in Zurich is
pro¬
receivers
film and live.
This
included,
presently being
ai;e
a
new
local
no
imported. Programs
on
as
A few have been
any consequence.
planned for the various cities.
on
planned in
well
as
Broadcasting is presently
to two hours per night,
on European
limited
receiver
cabinetry is rather poor when
judged by U. S. standards.
Programs
in
Italy
for
the
we
overall
location
duction of television
most of the
This
that,
Europe
10 KW transmitter is
new
17-inch set
station
the
growth
trademark
to $450.00.
decline from the 1953 level. What¬
of
investment
which appears to lie ahead.
studios.
using
estimate
thereby, in effect, trans¬
five days per week,
channel 4. There is
one
our
ob¬
investment
experienced
higher than in the United States.
envisaged
corporate
net
earnings in 1954 will probably
ever
be
to
carefully supervised and balanced
participation
in
the
long-term
in
Indus¬
which
is
achieved
his
The prices of receivers in
Italy
and
in
Europe
generally
are
in 1939
recognized
satisfactory
management his problems of tim¬
ing and selection and procures a
his
considering manufacturing sets
dustrials rose from $95 to $225 in the near
future. One large com¬
per share.
That the market has pany is
doing considerable re¬
this
to
suit
Status of Television in
Swiss manufacturers of
Another element of strength un¬
course
of
the
best
needs. He
fers
a
Power is
flect
-the
Continued from page 12
age
compares
con¬
For
experience
in
jectives
strong investment
caliber, and that he might hold a
an
price of this aver¬
about 10 times earnings
This
observation.
whose declared and
out-
employed
under
this
In
purchase
of
the
shares of well managed and sea¬
soned investment companies
prices,
justified
be
final
found
current
would
invest¬
portfolios
the attainment
investment
14,
light
essentially the policy
following currently
average investor the best medium
earn¬
term
companies.
are
we
administration.
for
probable
the
longer
related
as
a
was
is
too
none
company
one
direction
suggesting
am
of
favorable
lodk
has been about 9 times and at the
have
a
in
end of 1953 the
values
Longer Term Outlook
With regard to the
longer term
an
price-earnings
average
an
so
corporate dividends of 5% in the
first year. 10% the second
1946
for that year.
two-third's the yield of best grade
bonds. At the other extreme, in
certainly not
recently reached a new 24 year
high. Yet, as we have seen, these
prices are low rather than high
if they are related to corporate
earnings, dividends or the pur¬
chasing power of the dollar. Since
human
extravagant heights to which
hopes can soar, in 1929
common
stock yields
were
only
that
I
is
nection I should like to make this
industrial
a
of the last
years
1953.
The Dow Jones Industrials have
the
con¬
cerned, is the proposal to make a
beginning in" the elimination of
the double taxation of
corporate
profits. The proposed tax credit on
and
times
the
high
The economy will also
enjoy
stimulus of an enlightened
cf
common
normal,
was
of exuberant expansion.
era
so-called "index of
a
level
of this index in the 1935-1939 pe¬
riod, which
maintained
the average
was
Jones
marginal
be¬
I
purchase
in the management of the
limited and orderly nature of
any
business and earnings decline that
huge
Since the 1935period the money supply
has risen 250%, commodity prices
120% and weekly wages 220%.
invest¬
abnormally low
capitalization of
market
porate
"riskless"
is
thet- amount
abnormally high rate of "personal
savings, the abnormally low yields
of
prices
far
so
outlook
Dow
has moved in
to
good.
which
fact
names.
Market
consideration
evi¬
lack
This
dence.
years
noteworthy
been
a
of
the
time
no
lying ahead
best
This
prices.
curious
a
is
of
con¬
Another factor to be taken into
number
a
basis
Under the conditions
earnings, though there
plenty of precedent if
be
including
rate greater than
a
the
current
opposite that of the trend of
in
the
on
the
our
expect over the longer
rising trend of industrial
production at
The
We
decline
a
ment
ings in eight
infinite.
this
equities
not
that
the
tivities in every field of human
endeavor which derived great im¬
earnings at
am
average
conspicuous characteristic of
past 15 years has been the
the
lieve
profits tax.
they did not. It is
We
fields
prices of secondary stocks,
despite the elimination of
excess
would
that
frontiers.
new
those
suggesting that prices
might not sag under the impact of
that
economy,
mature
a
are
us
below
declining
econo¬
tell
1953
15%
as
times
only to sat¬
Dealers'
wont
were
ours
are
New
much
I
than
their
tively low operating costs. Despite
the sharp decline since 1946 in the
that
assume
It might be noted that
isfy the wants of an increasing
population
but
to
create
new
wants and higher standards.
During the dismal days of the
thirties
in
average
to
of this degree would still leave the
Dow Jones Industrials at about 12
It
search that
believe that
earnings of the Dow Jones In¬
type of companies may
the
is the driving force of
restless and expanding
re¬
our
I
management, research facili¬
ties, financial strength and rela¬
fair
as
of
pop¬
rather
ever,
nent
be
and
China,
declining stand¬
or
emphasize, how¬
the desirability of confining
common stock holdings
to those
of companies which are preemi¬
market.
dustrials
India
as
static
a
of
of the year.
course
I should like to
is the
is
net
curve
Public Confidence
For
of
Action?
prosperity and the gen¬
For those of us who
hostility this is a significant and
inspiring • development which in
ments,
Government Ready to Take
a
lived
shadow
fcusiness
and
defense
spending
be offset in part by increased
expenditures for public works by
which
welfare.
have
moderate decline in
irray
in
recognize and state
healthy and expand¬
as the foundation of
economy
diffused
a
individuals.
officials
clearly
with
environment
an
such
buyer's
the
the
of
it
is, of
surety of economic dy¬
Indeed, in those coun¬
no
growth
of
inherent
within
economy
next two years;
date.
(3)
the
and
complete
a
ginal companies under these cir¬
The increase in population
confidence.
that is
<2) As
population
our
profit
narrower
we
to
cumstances is dim.
should again
be in a lusty uptrend as we ap¬
proach 1960.
in
factor
and
near
and
as
prospect for the most
efficient. The outlook for the mar¬
fashions with regard to the num¬
ber of babies per family change,
me
commendable
dampening,
no
feehaved
brings
costs
transition
of marriageable age, this rate
of increase may slow down some¬
what for a few years, but unless
individual
of
savings into corporate equities.
Surely the widely heralded pre¬
;
flow
the
one
margins
the fewer children of the depres¬
sion years of the early thirties are
now
-cline, tight
business
activity for this modest reserve, say 15 to 20%, of
thing appears certain— his common stock fund
against
it will be a period of greatly in¬ the
possibility of such periods of
tensified competition, higher sell¬
unsettlement as might develop, in:
having
population has
risen rapidly from 129 million, in
lot of babies
of
rate
years
and the current fashion of
a
Thursday, March 4, 1954
.
.
.
To date there is
Spain
or
Portugal
no
television in
Ireland, al¬
though East Germany does have
a
or
station in Berlin. There
are
also
Volume 179
Number 5304
.
*.
The Commercial and Financial Chronicle
5$
(1029)
i"
stations in Moscow and Leningrad,
but it is understood they are us-*
ing very small size picture tubes
for their receivers.
The
largest
number
of
anywhere
television
receivers
in
Europe is in Great
Britain, served by a plurality of
stations operated by the British
Broadcasting Corporation in Scot¬
land, England and Wales.
At the
time
the
of
Coronation,
there was an interchange of pro¬
grams between England, France,
Belgium, Holland and Germany
effected by picking up the picture
on
receiver
British
a
in
rebroadcasting
it
on
the
French 819 line system and on the
Europeon 625 line system. (The
British are using a 405 line sys¬
tem.)
There is considerable talk today
overall European
an
television
be
inaugurated by
Christ¬
of 1953. Technical difficulties
mas
have
intervened,
and the Swiss
who are in a key position geo¬
graphically in this respect, ex¬
pect to have it in June, 1954.
The
French
television
planning
are
in
network
consisting
principal
of
three
stations,
the
located
be
to
one
a
Morocco
in
Casablanca. It will operate on the
819 line French system but it will
be sometime before it is in opera¬
tion.
France
and
of
network. It had been thought this
could
Turkey has
vision
in
future
and
the
also
not
planned
too
there
tele¬
distant
far
is
presently an
experimental station in operation
at
the
Technical
University of
Istanbul
which lis
operated
on
very low power on the CCIR sys¬
tem.
in pur national age where facili¬
ties in many of our cities are
from
page
10
earnest
to
theories
into
stand
marvels of modern
that
there
is
difficult
a
traffic
problem. But this com¬
munity is setting a pattern for
points to
abundance of the
an
raw
materials put of which leadership
can
fashion the shape.: of things
to
come.
In
'
.
v
.
.
United -States
-
''C
Steel we.are
particularly conscious of the ability within the { construction al!dustry. Just a year ago, we placed
our: new
Fairless
Works-hear
Morrisville,
It is
Pa.,; into d^i^tipn.
completely integrate4%tpel
a.
plant with
annual
an
2,200,000 tons
have
don't
^apadty^pf
ingot^i'Np^ I
of
thaL)|ie
bell^ you
to
construction of such-a i>lant:
£s*)ao
simple task, particularly when a
portion of the plant site of 3,800
daily in almost
way
some
with
200
prime contracting firms
business enterprise
Construction Activity
Cites
If you will pardon a home-town
example, Pittsburgh, Pa., is in
the midst of
a
re-development
program which has seen five new
multi-storied office
were
buildings al¬
ready erected, with five more
proposed for the future.
There
are
new
parking garages, new
parks and recreation centers.
is
million
$100
a
furnace
blast
and
.
r
tap
hearth in slightly
months, after the
ground breaking.
open
than
more
limited
highway, and a $30 million
airport, second in size only
22
There is
flood-control program
the
involving
eight reser¬
And directly or
construction
voirs
and
of
dams.
or
on
business
a
man
scale
a
with
with
as
in
roads
that
just
known
were
We can
are
our
like
much
the
Works
with
mine
Orinoco
the
River
90
Increased
Population
Factor
in
Expanding Economy
First
of
of
crease
will be
all,
our
one
I believe
the
in¬
national population
of the most important
expanding our economy.
impossible at the moment to
its full impact. Our popula¬
tion by 1960—just six year from
now—will be an estimated 180,-
000,000
of
persons,
or
addition
an
This
20,000,000.
accelerated
increase will create additional de¬
mands for everything from .baby
carriages to insurance policies.
Already symptomatic of this
increase in our population is a
growing movement to the suburbs
by millions of Americans. It is
millions
of
homes.
new
But
be¬
miles to the northeast and an ore
yond this, new communities mean
erected at the
highways, new
hospital facilities.
They mean expanded methods of
transportation
and
communica¬
tion, water supply systems, in¬
creased electric power facilities,
mile after mile of pipelines. They
mean
modern shopping
centers,
new post offices, new town meet¬
ing places, recreation centers and,
most
importantly, new
schools
loading dock
was
this
Since
new
industry was
sparsely settled, un¬
developed territory, none of the
in
created
a
needed to conduct min¬
facilities
ing operations were at hand. All
had to be transported to the site
erected.
and
this
Now
complex
completed.
largely
the
new
roads
medical
river.
mine
entire
site
new
task
And
is
at both
and the river port
towns
have
been
built, complete with houses,
schools, hospitals and other Civic
structures,
along
with electric
water and sewer systems
other service facilities. You
and
and
and churches.
The school problem
today is almost
self.
a
Enrollments
alone.
As
years
and
how this increase
interested to know that
all of this required an estimated
386 direct suppliers, tanging from
55 prime contractors and almost
100 manufacturers of equipment
be
to 75
jobbers of various types.
examples
These are merely two
activity for
facilities and improvements,
the
of
new
construction
that, in the past eight years, have
required
expenditures
by
U.
S.
It is also part
than $5% billion that
Steel of $2.2 billion.
of the more
.
the
entire
vested
ment
in
steel
new
industry has in¬
plants and equip¬
during the same period of
time.
Similar
construction- is
under
in America
frontier in it¬
will
increase
by one-third, within the next five
power,
may
which
to
and
we
increase*
can
interest to
group
work, in esprit de corps and in
winning morale.
Scars of Socialistic Drive
build
The
Socialistic
which
ago
generation,
we
a
farmer
drive
have
we
for
of
citizens
our
*
„
has
left
During the Iasi
instance, almost
thousand billion dollars of
ings
a
through
come
deep scars.
many
cities
But
anew.
future. Our
ahead, there¬
largely upon the
depends
individual
highways."
tear down
them
very
can
few years
a
"dream
as
even
build
and
We
predict what may be the potential
of industry and our economy in
the
atomic age which we a^e
presently entering. The possibili¬
ties undoubtedly are greater than
anything we have seen so far.
In electronics, we have another
area
and one jwhich has been
crossed only partially. One phase
of this field of electronics that
is
important for businessmen these
days is the prospect of more exextensive automatic operations in
industry — operations that can
mean greater productivity in our
plants and factories and all of
the impetus which increased pro¬
ductivity can give to our economy.
Developments of the past year
indicate that we are at least fac¬
:
direction.
We
being taken by
the Federal government to stimu¬
ing
in
earn¬
taken,
were
late
measures
Some of
business.
our
gov¬
ernment economists seem to have
realized
present
reveal
school
that
an
example
will
affect
facilities,
of
our
studies
class¬
1960.
This is in addition to the backlog
of
almost
350,000 classrooms
which are currently needed but
not yet built.
The cost of this
rooms
new
will
school
425,000
be
which
research
such
new
business,
new
ideas
new
every
products and
field is be¬
In each cubic
water, for instance,
assessment.
yond
mile
of
there
lion
in
give to
can
sea
are
an
estimated
five
mil¬
of magnesium
tons
awaiting
the long arm of technology to de¬
velop its use competitively, for
benefit
the
of
mankind.
chemical industry
The
has progressed
last
at
that
system
a
the stage
tell
construction
by
i
program
goods
more
unit
maintain
produce
services at
and
to
between
the
rate
received
and
his
of
a
pay
rate of
1953.
tivity.
In
years,
however,
this
been
recent
balance
distorted.
The
has
that gains on the
result has been
part of one segment of the econ¬
achieved,
but
not
that they
succeeded in turning a
duce
a
which
accrue
had
also
sow's
ear
long
into
a
ago
rayon
purse—
were
omy
that served
gains
real
of
group
if
to in¬
not pro¬
merely
and
economy
individuals
must
to
be
They must be the result of greater
are
we
than
rather
wealth,
divide
it.
The
shape
of
things
to
come
requires one more ingredient. It
must be clear to you by now that
if
completed nothing more in
at current prices will equal the
building for the future than the
total amount spent last year for items I
lhave already mentioned
all
construction
in
the
United we would make the
past few dec¬
States.
ades look like the "Gay Nineties"
The
in comparision. The truth of the
needs
of
our
increasing
population
alone
indicate
tre¬ matter is that I merely touched on
mendous
potentials and oppor¬ the more obvious opportunities
tunities for every person in the that confront us. There are many
nation. There are other frontiers, more awaiting us.
When the A B C building blocks
of course.
We are at that stage
of
what
There
sions
the
rate*
when
I
fate has
and
would not bring
that
hung in
of the
some
been
otherwise, but do
phasize
occa¬
•
—
have
taken
many
been
our
balance
is
earn
we
have
escapes
when
the
very
narrow.
this matter tip
only to em¬
so
freedom
the
and
arguments were out of
the
the
between
Cooperation, Not Conflict
America.
of
It is
certainly not too
hopefully,
our
ships.
should
on
the
of
such
homes, and figura¬
Church."
North
the old
would
I
h&ve
not
opportunity
relation¬
The attitude of each group
be constructively centered
product or service which
be
to
thisr
missed
with
have been
You
will
strengthen
our
it
nation
toward
It
is
and
and guide*
the
greatness,
of
men
your
capabilities who must;
and
positive role in determining"
a
the shape of
And
things to come.
in
finally,
should any of your
little difficult, I
leave
you.
I
further
this
came
faith
your
to help build
deserves.
trust we?
I
viewpoints which
discussed
courage
to¬
you
grand and
a
patient audience and
have
do
not
the
ago
to
the
f
u
t u r eT
tasks become*
should like to
thought
with
where ifc
repeated to
know
from, but it was
long
Here's
that capi¬
management have
mutuality of in¬
Cooperation, and not con¬
should
be
the dominant
characteristic
W**
us
tively speaking, "hang the lantern
from
by an
old boss of
something like this:
man
who
plans
things, builds things, makes
things.
fundamental
flict,
and*
soon
not too late for
return to
tal, labor and
terest.
revolu¬
and
you
tionary change in the foundation
mine. It went
we
a
of
many
and reflected that
opinions of only two Justices-
me
to the next.
course,
had
country
land, how
sat down
stood
be passed on
are
We know, of
the
and
in
court
you
a
they
the
way
heard the decisions of the highest
greater
productivity,
if
to contribute to
the
strength of the over-all economy.
No important part of the costs
accrued by one generation should
effort,
Initiative
spending*,
increased
in taxes.
produce
proverbial silk—a thing that men
always said couldn't be done.
Business
third
away
vision
earned
Another Ingredient Is
■
growth,
Benefits
to any individual or play
which is only a little short of the
have
has
of taxation until today about one-
day.
the
too
To maintain such
government
man
produc¬
flate
not
that this is almost twice
States from 1919 until the end of
relation
reasonable
a
less
endeavored
We
cost.
to
us
was
new
needed
enabled
ment that
into shower curtains.
told
you
the total amount of money
spen^t
on
construction
in
the
Uniteo>s
rights of the people have been
the creation of wealth
will grow faster when impetus is held in security at times only by
given to expand its productive the most tenuous of threads. You
capacity in ways which also stim¬ will recall the steel seizure al¬
ulate its capacity to consume.
most a couple of years ago. When,
Our greatest problem, therefore,
all of the clamor had subsided*
in the years ahead may well lie
earned, and therefore, they were
And I
with
based upon
where its magic can
turn soybeans into paint, natural
gas into television sets and coal
to
In caSe you are not famil¬
sums
that large, I can
iar
right
the
hear of
in
developing a better under¬
with the
standing of the benefits and ad¬
development was
vantages that accrue from our
the
vast
undertaking of our
Success in adapting electronics or economic system. Historically, our
Orinoco Mining Company in
was
based
upon
the
"automation" to industrial proc¬ economy
Venezuela. This past January we estimated that 19% of our na¬
esses
may
result, among other sound principle that if due atten¬
brought the first shipload of iron tional population now resides in things, in an entirely new concept tion were given the creation ofi
suburbs.
The real importance of
ore from Puerto Ordaz to Fairless
in
plant layout and industrial wealth, this country could pro¬
this exodus is not necessarily in
Works only two years after con¬
construction which, by the way, is duce a larger economic pie with
the numbers of people, but rather
struction work was begun.
proportionately larger pieces. To
a new frontier in your own indus¬
in the effect this type of living
Within that time, mining and
that end, we endeavored to main¬
try.
will have on the economy.
The
ore
preparation equipment was
Research in our laboratories in tain our facilities at their highest
installed, a railroad and a high¬ creation of new communities, of physics and chemistry has taken efficiency. We re-invested earned
way
were built to connect the course, means the construction of on 3-D proportions. The stimulus income in new plants and equip¬
simultaneous
Almost
Fairless
fore,
extent
the
and
in the years
success
do big things to¬
still take a new
the land.
present
our
We can
idea, like frozen foods, and turn
it into a luxury, and then into a
necessity found in almost every
home
ade¬
rendering a superior service*
a
competitive basis can we
build soundly and effectively for
worth the effort.
day.
possi¬
an
by
uct, could find justification in
taking a risk, igr the rewards
Of course, we
lowest
on
prod¬
new
a
the
quate net profit after taxes. Only
idea,
an
,
services at
and
situation
the
as
A
sell
and
ble cost in order to return
.
assess
first
small
as
to quality and*
time, we must pro¬
quality products,
comes
same
duce
.
and
first
or
the
at
alone.
It is
the
big
warranted.
a
factors in
the
tion when it
vital
and
necessary
from them and expended by gov¬
ernments within the United States
supported by 2,000 sub-contractors
-
possessed the special
and
who was approached by a young
indirectly connected with this re¬
In every industry,
development, $1 billion has been traveling salesman and asked to
organization, which I under¬
spent in the area for industrial buy a set of books on "How to
stand represents 80% of the build¬
Farm Successfully." After a long
expansion.
ers
of
America, is making
a
In
Houston, Chicago, Denver sales talk, the farmer stopped the
monumental
contribution
to
and just about every large city
young man, shook his head and
growth and progress.
one could name, the same situation
said, "Son, I don't need those
Great and positive forces are
books. Why, I ain't farming half
prevails.
Everywhere there
is
building up. A whole new con¬
progress, and plans are under way as well now as I know how."
cept of living is now emerging for still
And
that
is
the dilemma in
greater expansion and
from the laboratories and coming
which we have found ourselves
re-development of our cities.
off the drawing boards. The way
Due to
Another frontier that is virtu¬ for a number of years.
in which we plan and think and
ally racing in on us at this mo¬ the intervention of externa 1
act in the days ahead will be of
ment is the prospect of a radically forces, it has not been possible to
vital importance as to whether we different
world based on atomic conduct our affairs "half as well"
capitalize on these new frontiers. power.
Who
could
accurately as we know how.
and thousands of other contraetOTs
suppliers all putting- their
knowledge and skill and man¬
power and mechanical equipment
to the task,.it was possible to cast
buildings and vast manu¬
facturing
facilities,
our
nation
your
to 10 to 15
feet/before,actual
construction could be atartedL But
lies only in its ability
goods and services io.
exchange. We are all in competi¬
money
to command
storied
of the nation.
had to be raised in .elevation
acres
of
ducive to individual initiative and
Angeles.
section
every
We must realize that the valuer
engineering
bridges, multi-
Los
to New York's Idlewild.
least for the future, the evidence
engineering
the
ingredient of un¬
fettered private capitalism.
The
general atmosphere then was con¬
access
Shape of Things to Come
turn
rest of the nation by under¬
taking the building of a system
of expressways which will link
every populated section of Greater
the
new
The
is the real purpose of the enter¬
prise.
setting young invaginations
fire, when this nation began in
becoming obsolete. Here in Los
Angeles, for example, I under¬
There
Continued
were
on
Who prates
But
not of wonders of old*
gloats upon ancestral gold;r
Nor
takes off his coat
takes
AND
ahold
DOES THINGS!
and
1
-
04
(1030)
The Commercial and Financial Chronicle
monthly purchase plan
of regular saving.
4
A MUTUAL INVESTMENT FUND
Three promoti
Mutual Funds
NATIONAL
SECURITIES
nounced at the
H.
as a means
on s were an¬
time. Richard
same
Templeton, formerly Secretary,
elected Vice-President; Rob¬
was
By ROBERT R. RICH
SERIES
ert
BALANCE
favorable
a
FREE INFORMATION
well
FOLDER AND
cording to
1954 should prove
for
year
selected
of
owners
common
stocks,
statement
a
to
NATIONAL SECURITIES
RESEARCH
"This quarter was
able chiefly for
share¬
of
period not¬
a
broadening confi¬
&
dence
CORPORATION
in
the
outlook," the state-
ment said. "While
Establishtd 1930
general business
activity continued to recede
120 Broadway, New York 5, New York
ly
from
its
sumers'
factor
most
slow-
peak,
con-
critical
a
—
well maintained,
adjustments proceeded
lines
with
little
serious
hardship, and plans for plant
pansion and
most
ex-
equipment—that
factor—continued
new
dynamic
close to last year's
"The
high levels.
those
who
many years have taken
tax-sheltered
the
resume
tewaids
bonds
risks
of
for
refuge in
to
and
begin
obtain
to
the
professional
in-
vestment managers can sense better than
in
GENTLEMEN: At
me
a
no
prospectus
obligation please send
on
they can define. It should,
opinion, so enhance the in-
our
vesting
value
Canadian Fund.
public's
of
appraisal
corporate
dividends
to
as
the
of
earnings
than
more
and
t-
>
^
,?
annoyn<?ed
the
T
Keystone's
—
143
^
BOND, PREFERRED AND
COMMON STOCK FUNDS
usable
Low-Priced
issues in
Bond
the
Company
class
as
a 2.7% increase
share net asset value dur-
per
ing
the first half of the
was
rent
fiscal
There
vear.
cur-
the
first
dent of National Securities & ReCorp., reported today.
search
Total assets of the
comprising the Series
sored
and
managed
Securities
$150,600,000
by
the
In
reached
Feb.
26,
the
since
rise
a
1953
Value
year-
the
for
months
two
this
$9,200,000 total reported
and
January
assets
3i, *54
$43,067,839 $45,230,752
share
per
Jan.
$17.58
$18 05
Keystone's. Lower-Priced Com-
D-86
Stock Fund
mon
issues
held
Name.
lected
leciea
for
ior
Addrea.
of
the
State.
31,
were
their prospective
tneir. nrosDeotive
what
is
February
last
year.
stocks.
The
se-
sneed
speed
Fund
of
the
fund
of
holdings
the
of
major increases in portfolio
the
in
Series
the
first
two
better capital performance than
that
of
2.5%
was
its
in
also
ance
class, which
the
same
better
than
comparable
capital
registered
indices
declined
period.
This
performby
of
other
reached
stocks,
some
lower-
their
highs in
of
which
1951
and
com-
A Mutual
TOTAL
wealth
200
Parker
California
Oil
and
NET
of
assets
Common-
Investment
Company are
$70,000,000, the high¬
in the 22-year history of the
est
Over 10 million
shares
are
now
outstanding and the number
of shareholders is over 40,000.
_
1
,monthly
saies in
20,000
y.,
n.
BROAD
STREET
shares
gross
mstory
share
Fundus
$2 convertible preferred
in liquidation
(preference
$50
per
share and accumulated
dividends), and $3.83 per share of
stock.
Comparable fig-r
Sept.
30,
1953,
were
$178.38 per share of $2 convertible
preferred
stock
and
$3.55
per
common
for
ures
share of
PERSONAL
30.1%
B.
Chemical
increase
for
the
over
stock.
common
mittee
$2,326,061
a
same
Chairman
of
PROGRESS
WOODWARD,
the
and
Finance
Director
Com¬
of
Vick
Co., has been elected
month last year.
Director
Group
ASSETS
of
Growth
Indus¬
June
on
30,
1953,
highest
for
in
Feb-
February
Total gross
any
the fund's history.
for
Inc.
Formerly
Vice-P resi¬
dent
and
of
the
January and February
$2,144,000, up 77% from the
period last year, and an all
were
high for
any
two-months'
riod since the ^und beSan
tions in 1930.
pe-
opera-
Net assets of Broad
maintained
last
like
more
than
depression."
Looking
another year of "high
in security values.
the
beginning
of
of almost 14% in
'
ORR,
President
of
Industries Fund, stated that
total net assets of Gas Industries
Gas
Fund
have been building
approximately $24,equivalent to $20.54 per
are now
335,000,
.
for
P^cedented number of
As
of
some
During the
montfi
of
February the f
passed the $24 million mark
the
first
time.
..
4
■
sees
an
Such
gnce.
selective
in-
new
these make
the
are
makings
opportunities
in
tioning,
new sectors
for^automation;'
"
air condi-
-nbw
-'
stocks
curities
Feb.
Inc
28,
$57,026 939
were
1954,
compared
$54,387,746 at NOV. 30 last, the end
the
1953
fiscal
the
company's
eral
Federated
Mills,
first
Sales
quarter
for
The
common
dur-
5S&
Department Stores,
Johns-Manville,
Gen-
Kansas
City
43% ahead °f those for the
Preceding quarter, continuing the
were
gaing reported for 1953
held
on
purchases
continued
stocks
of
benefiting
sumer
the
of
stocks
emphasis
buying,
the
high
although
already
the
of
well-established
from
a
Trustee of the
Brookings Institution of Washing¬
ton,
D.
C.
and
Committee
on
the
of
nance
Economic
served
eral
member
a
National
consultant
as
of
the
in
Research
Fi-
Bureau
Research.
Reserve
Treasury
He
the
of
of
has
Board,
the
Fed¬
Department,
U.
the
S*
State
Department and the International
Development Advisory Board.
EATON
&
HOWARD,
Incorpo¬
rated, announced that Andrew J.
Lord, Jr., of Wellesley Hills, Mass.,
has
ated
become
fund
companies
level
of
associated
Mr.
with
that
I
Lord
Princeton
four
Captain
gradu¬
in
in
years'
the
1947
service
Army
Air
fol¬
as
a
Force.
Since 1947 he has been associated
Lord
York—for
Abbett
the
&
Co.,
past four
New
years
as
New England representative.
THE
con¬
van
increase
some
from
lowing
with
Washington water
Power
Additional
Brooklyn,
Donald B. Woodward
organization.
and $52,-
year,
493,205 six months earlier.
in
Foods,
Lincoln
......
bought
s
of
.
«H»g
Wltx>/
of
areas
""
~'V-:...
\
of
1954—
of chemistry,
certain
i
un-
headway,
despite
international
tensions, selective investment opportunities put in their appear-
and
<*
of
selectivity
Backlogs
.
up
of
1954,
Allen, President,
.
dustries.
H.
year
into
Harland H.
at
a
forerunner
a
re-
Mr'.
Savings Bank,
to
keep
invested
in
fully
what seemed
transition
"because
year
decided
rather
of
trustee
a
the
management
funds
in
Wcodward
well
was
Street Investing have risen above
compared to assets of
charge
f
o
York
search,
previous.
income
Life
urance
Company
New
year-to-year gain in the company's history, reaching 141,335
on Dec. 31, against 114,637 a year
Portfolio
a
ojE
Secu-r
rities,
were $3,662,000, a new high and
up better than 14% from
$3,204,-
$24.61
new
$1,068,000
APPOINTMENT
Heukelom
as
the
in
of
Carel
representa¬
tive in
JSlS fh!tin the a&ricultural equipment, building,
nual stockholders'
meeting elimi- ^tee1, C^™icalS and electronics groups also
nation of
the
was
that
approved.
The
Fund is
which
at
1%
net
Hagey pointed out
Stein
one
of
Roe
the
investors
asset
redemption fee
can
value
&
Farnham
few
funds
buy
commissions
reported
an
or
or
without
charges.
increasing
He
use
upon request
Lord, Abbktt & Co.
—
of
stock
tne f una s stmres^nJanuarv'had
cares m January had
a
gross value of
NET
Equity CorT
were
rr.;
Cor-
v
NEWS
ended Dec.
1953 shows net assets at that
equivalent
to
$188.53
per-
on Dec. 31, 1952. Net asset
value per share was $25.91 against
of
totaled
ruary,
in
Investing
sales
gross
Gulf
year
g;SSe?,|Sj:I,IfoSS0^!Sc8^j,.,4'00# ^tiat the end of 1952. Shares
outstanding showed the largest
poration's
Oil
Co.
eliminated,
were
THE REPORT of The
Edward C. Johnson 2nd, President,
in
eliminated
American
steel
consolidated
Dalry
during the period
Foundries,
Edison,
Products,
du
Niagara
sell
any
J
SE<^ON°
Briggs
Pont,
Philadelphia of Television
Shares
Management Corporation,
national
Atlanta
—
Los Angciex
distributors
of
Televi¬
sion-Electronics Fund and Hudson
were
Mfg.,
National
Mohawk
Power,
She11 0ll> and Texas Coyear changes
vestment
the Sn"
THE COMMON
holdings of Canadian Fund, Inc.,
also
of the
STOCK FUND
OF
Group Securities, inc.
fund
97th Consecutive
Quarterly Dividend
a
ment
31
Chicago
Power
15,-
Standard
Texas
CLOSED-END
reported by Fidelity Fund.
20c
—
Montana
5,500
Corp., 9,610
Marathon,
5,300
Mutual
Chesapeake & Ohio
Chicago & st. Louis
A Balanced Investment Fund
New York
and
2,500
Walker.
date
rr.;
27.000
Berkeley St., Boston, Mass.
gi
3,600
Ins
Prospectus
19 25*
Hiram
Aviation;
Corporation
U FOUNDED
Paper,
of
31,
in excess of
Business Shares
Prospectus may be obtained
from investment dealers or
7,000
poration for the
gfnnfng^of"me"lear" ^ ^
f
^
y
American
Investment Fund
and
Socony-Vccuum,
wellington
The
Nicke}, 4,350 Powell River,
Finance
2,-
Seagram's,
Acceptance,
srjmmaifaiixst• *3? ooo3no?5i America°n 000
.
priced
Pacific,
13.600
Industrial
Sales included 4,000 Asbestos
have
passed the $71/2 million mark
com-
reported
increase in net asset value and
an
7,100 Int.
Traders
Canadian
Paper,
try Shares, Inc., at the end of 1953
normally
fastest-moving class of
mon
a
Jan.
on
from
move
"S-4," whose 60
2,000
2,675
DONALD
first
sales volume totaled $10,700,000, an all-time high for the
period and an increase of 16%
of
me
prospectuses describing
Organization *nd the shares of your
of
year,
over
assets
National
on
$17,600,000
spon-
Resarech
&
Net
TOTAL NET assets Of Group Se^'--Stock Fund of Group Securities, Inc.
results-
net
Dome,
urer.
fund.
mutual
seven
funds
the
are
Street, Boston 9, Mass.
Gty
for
gain
a
the class and
over
Oil,
Consolidated
500
the inc,ome- reportedfor production the fund outstanding. shares of perhaps in electronics
most attractive 1.7%
share on the 1,184,661
u_n..q;^^allurgy.
of
Total
Funds.
level
e
JAMES
July 31, '53
Please send
000
aS C011fR the year< a rise
tw0 months'
«99n 9i7 finn
Fund, whose 60 low-priced bonds
held on Jan.
31, were chosen from
in
The Keystone
National
of
i
USLOtlldH 1 UHGS
50 Congress
1
ths earlier.
>y\stone
C1
the
ASSETS
far lief and $2le8?fi 590 six
^
$216,818,500
*
K,
with
400
5,000
from
up
Secretary to Secretary,
L. Odt, formerly AsTreasurer, became Treas-
Alden
$41
$36
Qi
^ooQQQo'onn
n^H
^
CUSTODIAN' Funds,
+
$6.42
14-yedr history of the
Series, E. Wain Hare, Vice-Presi-
time
xt
$6.37
*n
same
m
American
International
$8,222,572
share—
$150,00'
sales
*
$8,149,187
Securities Series have crossed the
com-
nTTc™™
city—
moved
managed by Calvin Bullock, include the
purchase of 3,803 shares of A.umihium Ltd.,
16,100 Bell Te;. of 'Canada^ 8,300 British
ancj
sistant
assets___
TOtAl
expected."
Address.
ten
per
pensate for any shrinkage in their
amounts that can
reasonably be
Name.
your
value
some
affects the securities markets. The
•climate' has undergone a transwhich
the results:
are
July 31, '53 Jan. 31, '54
net
owneiship.
"That
overworked
word
'clinate'best describes the
change in
background which so profoundly
tormation
since
more
or
end.
sive steps taken to lower interest
encourage
These
Total
Administration's
program
of tax adjustment and the succesrates
then.
were
—
inventory
in
all-time
purchases
have declined 30%
ac¬
holders by the management
Group Securities.
PROSPECTUS
Woods
Thursday, March 4, 1954
.
Assistant
^
ON
WRITE FOR
A.
.
.
to
share
from
income,
stock
net
invest¬
payable March
of
record
March
10, 1954.
a
prospectus
request
Distributors Group, Incorporated
63 Wall
WALTER L. MORGAN, Presiden!
on
from your investment dealer
Street, New York 5, N. Y.
Volume 179
Number 5304
.
The Commercial and Financial Chronicle
.
.
Fund, was announced by William
H. Cooley, President of Television
Shares Management Corporation.
Mr
&
is
Heukelom
van
associated
Co.,
and has been
leading banking
with
Amsterdam,
He is
former
a
de Saint-Phalle
partner in Andre
ho.uses
from their real worth.
Technique for the Small
Investor: Monthly Investment Plan
plans, at least, they cost
than
amounts
Let's
Kidder, Peabody & Co.
W. EDWARD TAGUE is now as¬
and
with the
United States Air Force and sub¬
sequently
finance
appointed
was
liaison officer on the SHAFE
and
the Netherlands.
Mission to
with
sociated
C.
A.
Allyn
Company, Incorporated, as whole¬
sale
representative
in their
Concord
for
was
stock of his
and
Fund,
Concord
for
Since World War II, Wall Street
become
increasingly aware
has
the
LINTON
of
Delaware
the
to
invest¬
by "small" investors to fill
ment
NELSON, President
W
need
selection
U.
selected
was
promotion to Rear Admiral,
Navv Supply Corps, by a
S.
vened
u a r
con¬
change
in
by the
Navy was
"small
made
this
\
World
a m o
g
of
first
lNeison
Linton
the
Navy's
World
W.
the
n
II
War
Officer of
cadets
the
in
and
Commanding
as
Naval
Supply De¬
pot, Oran, Algeria. He holds the
Legion of Merit and the Bronze
forth
the
have
Starr
board
of
been
elected
directors
of
to
Broad
Street
Investing Corporation.
-Mr. McAlpin is a limited part¬
in
ner
the
firm
brokerage
&
He
Co.
investment
New York
is
Clark, Dodge
Director of Tri-
of
a
Continental Corporation, National
Investors
and
the New
Society and
Philharmonic
Seminary.
A grad¬
University and
Princeton
of
Law
Harvard
School, Mr.
is a resident
Jersey.
pin
Foundation
Director of Union
a
Theological
uate
York
Trustee
a
Conservation
the
of
is
He
Inc.
McAl¬
By
picture.
it
really
are
new
factor—
invest¬
enabling people
shares in particular
purchase of securities. Mind you,
I
said
"reducing,"
because the
risks are still present, but their
effect can
be reduced if shares
all
at
once.
of time
In finan¬
jargon this is termed Dollar
Averaging.
I'll come back
that in a few minutes.
cial
Cost
to
In the
past,
beep disillusioned through
unwise
purchase
of
securities,
even those of so-called Blue Chip
have
quality.
of
Few
these
blamed themselves,
Instead,
natural.
entities
abstract
such
"brokers,"
or
investors
which is quite
they
blamed
metals in
is also
He
Pevu.
Vice-President
and: Director
of
or i
A
and-Harvard
in
Graduate School of
Administration^ he
Business
sides
College
of Williams
graduate
re¬
ard
to
Board
the
Chemical
nounced
A
Mr.
was
Eberstadt,
an¬
Presi¬
Fund.
the Fund,
former director of
Richard
resigned in 1942 to
of the Army
Chairman
become
and Navy
the
F.
by
dent of the
?
Inc.
Fund,
Munitions Board during
war.
connections
His
business
earlier
included
a
urer
of
Ipswich
Mills,
that
so
few
many
Street
and
bonds
Exchange and
its
have done much
firms
correct the
misconceptions about Wall
which still linger in the
recent
in
stocks
Stock
members
years
to
public mind. They have encour¬
aged investment for its own re¬
wards instead of for speculative
profits, but until now there wasn't
any "New Look" to persuade the
public of this important change in
be started with as little as
$40 per month or even per quar¬
ter, for the purchase of a single
stock. Any number of plans may,
may
MIP
Does
Not Encourage
Speculation
V
account.
the
in
Di¬
'
pany,
Lancaster
Chemical
Throat
Hospital.
to
the
8%
Mutual
vorable.
be
the
from
the
actual
the
of
all,
how
they
the
of
the
different in fundamental purpose,
and hence in the method by which
at
your
stock,
loss would be
your
just
that purpose is achieved.
four years
or
particular
suddenly took a change
worse,
and that change
of
reflected in the market price
was
quite
are
of three
fortunes
for
compare?
s
However, if
price is high.
company
the pur¬
when
shares
fewer
the end
at
$100,
cost,
method
two
first
average
an
purchases. This would
buying more shares
the purchase price is low,
chase
slightly less expensive.
Well
at
from
when
and
pur¬
than
more
in
dollars
thousand
stock
result
whereas
quarterly
or
is
amount
Apart
do
Fund,
now
total investment
of all your
expensive
more
average
monthly
chase
it is
little
a
the
from
years
a
cost
somewhat below the average price
that
I
monthly or quarterly purchase
$100, the MIP plan works
to
several
of
fa¬
quite
appears
Three
might have
you
comes
Fund.
outlook
day's
ex¬
roughly equal to
or
the
of
cost
than
if
The whole cost
taxes.
about
next
The
MIP
as
real whether you pur¬
chased the shares gradually or all
enables the in¬
vestor to build up an interest in
the
stock
his
of
choice.
That
once.
view, at least, the prob¬
In my
plan
lems
he may work
and want to
find
given
a
in
company
its pros¬
perity.
in
Or, he may be a specialist
particular industry and feel
a
that
one
that
industry
two
or
companies
have
in
outstanding
are
the general public,
easy to select stocks,
broker
buy
shares,
To
it looks quite
apparent.
share
are
they
than
real
more
choice may be the result of quite
a number of factors.
For example,
for
investing
successful
of
lot
a
a
maybe sell them again,
and pos¬
sibly repeat the process. Opening
an
MIP plan is even simpler on
the face df it. The fact still re¬
that
mains
selection
prudent
gram
with thie reasonable cer¬
tainty that nobody can accuse us
encouraging speculation.
In
fact, this program is the first
not issued
are
*A
lecture
by Mr. Cates in course
Make Investments," sponsored
Greenwich, Y.M.C.A., in coopera¬
with the New York Stock Exchange,
"How
by
to
the
tion
New
York
City, Feb. 25,
1954.
to
one
who seeks
the
avoid
problems of securi¬
selection.
He is willing to
ties'
one
ment
another of the invest¬
or
firms
management
who
firms
live
is
the Mutual Funds could
nor
to be derived
the income
on
periodic purchase
plans alone.
These plans were
developed primarily as an extra
from the sale of
supervise Mutual
MIP
with thousands of other people on
Street
proportionate basis. In this way,
he becomes an owner, with all the
clients for these plans.
plan which you may wish to
know about.
»i»
*
#
and
Funds
Mutual
The
MIP
beginning of this
I
alternative
an
known
six
as
years
direct investing
to
the Mutual Fund. About
ago,
brought out
tor's
Also
available
of reinvesting
quarterly dividends in addi¬
tional
privilege
shares
at
without
initial
minimum
be
a
convenience.
the
was
the
least
cost.
The
purchase had to
$50,
and
subsequent
purchases at least $25. No regu¬
purchase schedule was re¬
quired but the investor was asked
lar
state what his intended
to
ule
a
in
be
would
could
that
so
be
sent
sched¬
reminder
to
him
at
This plan filled
great need, and was soon copied
one
time.
form
different
the U. S.
that
this
or
centive
the
of
management
cost
Mutual Fund owners
in
today, I would estimate
the
usual
Mutual Funds is
objection
to
said to be their
investment portfolio
there is not much in¬
for
salesmen
in
Wall
seek
to
the
to achieve some
investors
will
ment
goal.
to
good deal of the effect
of MIP in certain Mutual Funds,
conversely MIP
and
to
a
can
to
offer.
best
we
possible to accumulate their
under
systematic
plans.
shares
ment
end"
NYSE
the
In
effect,
the
the
of
'the
under
passed away at his home
at the age
managed
is
in
end investment
South
of
Closed-
guarantee
asset
both,
charps
Chronicle)
added to the
Richards & Co., 621
Spring Street, members
of
and
San Fran¬
cisco Stock Exchanges.
Mr. Tucker
&
regularly
to
nor
redeem
Los
Angeles
previously with E. F.
Hutton
Co.
Mutual
value.
which
from
prevents
heinff
traded
Webber
Joins Paine,
do
(Special to
their
LOS
outstanding shares at full market
thpir
The Financial
companies neither
issue new shares
or
to
staff of Hill
including the very obvious
do
Feb. 25
ANGELES, Calif.—Robert
D. Tucker has been
close
differences,
certain
of share redemption.
Funds
New
of 52.
a
portfolio
a very
LOS
was
they
asso¬
Hill Richards Adds
the
one
Richardson,
on
counter-part of the Mutual Fund.
course,
R.
City, for the past 25 years,
York
(Special
shares
buy
to
of securities which
are
yours.
on
ciated with Vilas & Hickey,
plan.
MIP
plan enables
the MIP
professionally
There
knock
to
can
Andrew
"closed-
purchased
be
can
investor
what
to
up
number of invest¬
a
companies
type
potential
of
Andrew R. Richardson
man¬
Well, a number of Mutual
Funds specialize in particular in¬
dustries or types of securities, and
Conversely,
wake
missing and come knock¬
ing at our doors. In the mean¬
time, we will have to continue as
aged?
it is
world
be used
is this
How
Neverthe-
are
gain much of what the Funds
have
develop
and
basis, and maybe
cost
realistic
they
Oddly enough, it is possible
achieve
out
less, it does help clients and sales¬
men
to have them available on
someday
particular invest¬
with
Even
investors.
to
8%
to
a
worth,
manner,
an
service
consisting of many securities, pro¬
fessionally managed and designed
another by almost
perhaps 150,000 of them are
Since
6%
share
others, of
talk,
spoke of the MIP plan as "the
latest entry in the field of small
investor savings plans."
As most
of you probably know, there is
the
At
Funds by pur¬
chasing its stock and assuming his
a
accumulating additional shares in
Cor¬
the other hand, is
fractional share credits
are
paid out in cash. Of course
there are other details about the
any
finally, we can point to all of the leading Mutual Funds.
Stock Exchange's MIP pro-„ Assuming that there are 700,000
rector of Rio Blanco Copper Com¬
poration and Treasurer and a Di¬
rector of Manhattan Eye, Ear and
the
1V2%
odd-lot
you
purchase
plus varying State and Fed¬
pense
hire
Fractional shares
and
of
a
that he will be sent a
tinued and
certificate for all of the stock held
Now,
the
He is
way,
if
but
started,
the proper
recently resigned as a Senior
Vice-President and Director of F.
Eberstadt & Co. Inc.
has decided to
much more intricate than it ap¬
purchases are growth
possibilities.
Again; he
interrupted
too
frequently,
orC may have consulted with a broker pears to the outsider, so all I can
suggest to you is to be extremely
lapse for more than four sched¬ who
recommended
a
particular
careful
how you
go
about in¬
uled
periods, the odd-lot house company which he has studied
vesting.
may close out an account.
When carefully and come to like.
In conclusion, I should mention
this happens tho investor is noti¬
The Mutual Fund investor, on
that neither the NYSE member
fied that his Plan is being discon¬
be
notices
attitude.
President
He
Plans
of the status of the account.
larly and the certificates held by
a
custodian bank for the inves¬
of the
Spool Cotton Company and
Vice-President of Pacific ' Mills.
de¬
if
lying somewhere between specu¬
lation and gambling.
of
partner¬
ship in the dry goods commission
house of Lawrence & Co., Treas¬
automatically,
sired, sending out periodic notices
as
business
The
Rich¬
of Directors of
an
actually
one of the Funds
Plan by which its
shares could be purchased regu¬
that
Greenwich, Conn.
THE ELECTION of Auguste
broker,
with
which
house
dividends
"in¬
Americans
securities, even today, and
so - many
still think of the
business
own
Cerro de Pasco Railway Company.
his
account
an
The
dividends.
of
through
buys his shares and reinvests any
"Wall
as
-
rous
number of convenient
as safe-keeping and
^.
"odd-lot"
good many people
a
siders," or just plain "they." In
doing so they spread a distrust
Mr. Starr is Vice-President of
of
legitimate
investing
among
Cerro
de
Pasco
Corporation,
thousands of people
who could
which is engaged in the mining,
and should own securities.
It is
sinelting and refining of non-fer¬
an unpleasant commentary on our
New
and
which the investor
buy. Stated another
might start a plan to
shares of stock X for
five years because to¬
industry
or
time to
another
be
Averag¬
.
of
instead
intervals
at
bought
are
Princeton, Street,"
of
a
gradually, over a number
years, they are reducing one
the chief risks inherent in the
Corporation and White¬
Fund.
hall
plan
stocks
of
DAVID H. McALPIN and H. Dan-
like
adding
to accumulate
of
Medal.
Star
MIP
Exchange's
the factor of TIME—to the
ing
one's
of
stocks
or
systematic purchase plan,
a
establishes
Investment Plan)
is
stock
the
investor,
others
the
doing
there will
commission
out
briefly, the NYSE MIP
enables anyone to accumu¬
reinvestment
Dudley F. Cates
the
(Monthly
and
aviation
detail.
offering
securities owners.
of
sell,
comes
Cost
the risks inherent in the company
6%. Then,
differential,
per
When it
the
Although
it possible to buy
Dollar
a
market
or
odd-lot
on
basis
and
thereby
reduce
risks, it does not reduce
ing
charge
share, or about V2 of
This totals •6%% just to buy
1%.
features such
the
What
I
War
the
Co.
is below
rather
Savings
market
in
transaction,
is
25c
minimum
a
shares
might add that if the amount of
inves¬
widen
Nelson
served
per
$6
there
by means of periodic pur¬
chases through a member firm. It
is
not
an
instalment plan, but
Plans, de¬
signed
to
tor"
week.
Mr.
of
Edison
differ¬
wide
a
Exchange.
MIP plan makes
basis. To begin
same
there is
choice
of 1
field
the
ment
the
with
of
Stock
the example
Consolidated
on
is
quality and degree of risk
among common stocks including
those listed
on
the
New York
Fund
the
late
the
latest entry
duty.
take
circum¬
particular
own
There
in
ence
cost
no
your
stances.
eral
plan
an¬
nounced
announce¬
Next,
chase
or
is
on
sale.
the
stock.
favorite
your
Generally speaking, I would say
yes, but the real answer depends
investor who decides to pur¬
an
stock
Stated
Ex¬
Stock
the Navy. Mr.
Nelson is
on
inactive
fact, there
selling
of
shares
charge of
ultimate
his
three, and thereby accumulate
or
$100
ing to make a place for them in
the financial scheme of things.
more
Secretary of
The
of
tangible evidence that Wall Street
is seeking the patronage of bona
fide "little" investors and is will¬
month,
the New York
by the
y
gap
Last
in Jan-
sales
of
plan to want to hear about it in
buyers.
for
Fund,
rate
Well, enough of theorizing. By
now
I
hope you may be suffi¬
ciently
curious about the MIP
left
through the
gradual disap¬
pearance
of
wealthy stock
board
encourage
in¬
an
buy Mutual
in
the shares.
of
Inc.
The
actual
shares.)
problem of selecting securities.
Allyn
Incorporated is
Company,
underwriter
(In
A. C.
Company.
the
at
and
involved
choice, while mutual fund relieves investor of
Delaware Fund and Wisconsin In¬
shares
purchase
expense to investor. Holds distinctive feature
plan is that it enables investor to build up interest in a
Inc.
vestment
encourage
gap
purchase
of MIP
Mr. Tague formerly
wholesale representative for
Fund,
efforts of Wall Street to
on
purchases by small investors to fill the
Probably each of you is won¬
dering if it would be wise to
start an MIP plan, or possibly two
quarter.
or
example of
Removed
Risks of Investment Not
Stock
8%, included in the offered price
of the shares as quoted daily in
the newspaper, covers both his
mutual funds investment with MIP and finds little difference
Commenting
During
World War II, he served
the
month.
per
security
caused by gradual
disappearance of wealthy stock buyers, Mr. Cates commends
the Monthly Investment Plan of the New York Stock Exchange
as adding a time factor in the investment picture, and thus re¬
ducing a chief risk inherent in the purchase of securities.
Points out MIP does not encourage speculation. Compares
Switzerland.
the
on
month
each
take
Fund
Members New York Stock Exchange
He
completed his education in Eng¬
and
listed
vestor who decides to
graduate of Browning School.
land
stocks
premium or a discount
a
no more
Exchange when bought in modest
By DUDLEY F. CATES*
native New Yorker and a
a
either at
in the field of systematic purchase
A New
Berlin.
and
London
cost, it is worthwhile noting that
in
55
(1031)
The Financial
ANGELES,
trice B. Phelps has
of
Paine,
Chronicle)
Calif. —Bea¬
joined the staff
Webber,
Jackson
&
iV
53
The Commercial and Financial Chronicle
r*
(1032)
creased cost of
Dies Govt. Insurance Develop
shortly after
Is the s"PPly
°f"^ages
of line with. the
(the home) is supplethe credit of a goveramental „6w,w.
agency.
This supplemental government credit, which
is
end^ of the war.
home
the
to
pur-
chaser, makes possible the length-
tributed
The
(1)
Problem
.
,
be
page of housing construction dur-
danger of an oversupply with
'impact
nrii-bc
the
on
(2)
voiiiec
prices,
on
lience
values,
its
nnri
and
mortgages?
durins the
a!
.
when
mortgages
could have been
used
(4)
later
Can
lAarirpf
rWinnPri
thpvphv
hfv
thp
SSditv ot Lrt/affes Witho^ft
*qOidity of^ mortgages, without
Are
therp ton
In
Ws
dated Jan
IW
crnistruction
h
'feeing of
fore
properly
a
com-
social
we
1
ins there
country,
cur
housing
areTssenTal
economic^and
the
of
vigorous
^development
rami
President
level
and
and
iversuoMessage
an
Housing
25
hi hieh
•tated
homes
manv
thLrf^nee^of
nlv'
lo
the
the
r/w
m,s
01
concern
government to insure that opporlunities are Drovided every Amer
Iran fnrnifv
Home"
The
ISTes"i*nust
S
in
President
Federal
"The
further
At the^ame
iSinni S^Pnrnlrl,ms^"
increasingly
our
dependent
>««pon the Federal Government to
supply their housing needs." The
President recognized the
inf
still
frn-
shm-tagf
?L
a
fact
1
i
,
h?»Tinn h?
n
w
d
.situation he recommended
;n.
"
a
bolh
dwellings,
for
new
Unf'P
and
the recommen-
made that slum clear-
was
nnnrinim
of
the
is
End
of
The
Sept.
in
was
quire
above
it not
table
for the
FHA
Total
table:
antced
27.5
11.7
15.8
The
14.2
been
the
greater
35.8
than i the
and money rates in all
The
gupply of Funds
demand,
a
probability
future supply of savings
FHA
,
is
so
FHA-insured
an
VA-guaranteed mortgage with
of over 25 years is
maturity
and
rather
but
means
can
whether
ways
be found to
make
FHA-insured and VA-guaranteed
mortgages
hence
marketable
more
more
liquid.
and
Since the Ad-
be adequate to the demand if (a) ministration is eager to eliminate
Wu
cagci w unuuidic
and of corporate and tax-exempt the Treasury should operate with FNMA and to convert it into a
Treasury should operate with FNMA and
a
large deficit and
finance
it
securities increased, the supply of a ]ar»® deficit and finance it privately owned corporation, it is
funds available for investment through the sal
of iong_terra up to those who originate and buy
has kept pace. In part, to be sure, bonds, or (b) if the debt manage- mortgages to assist the governard particularly shortly after the ¥n°£ the Treasury ment to achieve this aim. In many
wal'- the supply of funds seekillS f,
directed largely toward respects, one may say that FHA™ outlet in mortgages and in cor- the conversion of matured or insured and VA-guaranteed mortP°rate
supply
supply
securities
of mortgages
oi mongages
of
government
bonds
ij
<.
/ailed obligations into long-term
ac-
quired during the war by institu,lional investors, notably life insurance companies.
contractual and negative in char*1
acter
resemble the Public Hous-
gages
^nng the p^tftsral year will
although voluntary savings
surplus of
ings banks and time deposits
loan
rlal!ze- the budget
t;cai purposes will
To,be sure, because
!nt]ow of receipts,
ond
9C
remittance of interest apd amorti-
v.isaged. If these estimates mate-
commercial banks as well as
tal sharea
savings and
of
capi-
be balanced.
ot the uneven
associations.
The liquid savings
in the hands of the people conhand
on
bank
0Ver
$200 billion
$1545
The
as
billion at the end of
contractual savings in the
life insurance, pensions,'
(arm lof
and
profit-sharing funds have in-
^
AAA
0
_
_
$100 million is
for all
en-
same
extent
as
on
new
homes,
funds*
[n
avaTlaWe'for'invSent II
the
form
vMph'tha
.r
thqeo
jo
tamniv
,
„
/vJua
r.
1
f
o
negative
savings
of mort-
gages as
arapng the stocks.
well
p.y
f
as
If,
the operation
central
prac-
i
s has increased too
j
point where it
adveise
effects
,s .°
1S c1onc;U310n
,
on
bonds
on
even
and
guaranteed
ketable and
private
moreover,
sources
notably retained earnings
and depreciation
nance
their
reserves
capital
to
fi-
requirements,
existing one is warranted in concluding
es n.ot tba^tbe suppiy of capital has keot
nv*
ups
Q
IS !f
ana
ue
leai
to
cons.n^all
state of flux, ally
downs
a
in
values
expected, and this
estate.
are
includes
,
was since the end of the war,
stimulated by the activities of the
FHA and VA. the
supply of funds
seeking
investment
would
have
it
in
hence
mar¬
liquid rests
on
particu¬
and
larly
ers
on the originators and buy¬
of mortgages. Once a way has
been found
to standardize and, if
possible, to concentrate the serv¬
icing of FHA and VA mortgages,
the
rest
would
be
relatively
a
simple problem.
Conclusion.
The
Government of the
States
has
realized
United
that, the
pro¬
viding of housing, particularly for
people
in
the
lower
income
-
groups, is properly a government
function.
This problem in recent
aggravated
was
sharply
increased
construction
individual
in
average
the
lower
afford
housing without
rect
home
of
the
not
could
group
government
income
-
direct
a
the
by
cost
that
so
decent
indi¬
or
subsidy.
This
subsidy has taken the form di¬
rectly of public housing and in¬
,
directly of guaranteeing and in¬
suring of mortgages.
The guar¬
anty and insurance of
mortgages
has removed the credit risks from
such mortgages, has made
possi¬
ble
the
lengthening of mortgage
maturities, and has attracted a
great
deal
tutional
of
capital
investors.
from
The
insti¬
guaran¬
teeing and insuring of mortgages
oAi»r\AvoTO
ing charges,
with
the
is it
nor
savings
out
of
this
to
be
relatively
mortgages
to gov¬
A way has to be
recourse
ernment credit.
trate
to
standardize and
servicing of guaranteed
insured mortgages. Once this
achieved, there should be no
basic difference between institu¬
tions engaged in the
financing of
homes and those
engaged in the
mass
financing of the purchase of
the maturity of
credit.
m0rtgage
From
the
anaiysiSj it is c!ear that the
answei, is in the negative. The inSurance and guaranteeing of mortgages
by governmental agencies
,
ond conclusion, that the supply of
^ortJaSes bas not be?n excessive
ln
.
v
,
*
j
.
i
.
«
of home'"owne7ship.
agencies of the government
guaranteeing and insuring mortgages have thus contributed matba
p to savings*
on
a
maturity
25
of
the
this
of
indicated by the President in_ his
Housing Message, there is still a
substantial need to improve hous*n2
facilities,
particularly
of
opinion, it is unsound to make any
mortgage loans where no downpayment
tential
is
required.
buyer of
demonstrate
save
a
a
at least
that
a
Every
people
po-
home ought to
a
he
was
able
hence
a
has
financial
the; property.5
Where
an
equity
interest in
the
thorities' and
mort1
the
lower-income
It is, however, of the utmost
importance that the activities of
the agencies engaged in insuring
and
in
guaranteeing
of
home
mortgages be coordinated with the
credit policies of the Reserve au-
down-payment. Moreover even
small down-payment indicates
and
in
gr°ups.
to
modest amount for
that the mortgagor
high level of busi-
writer's
mortgage
In
years.
our
activity. In spite of the fact
that we have had a housing boom
^or a number of years, the need
has not as yet been met. As was
ness
(a) where no down-payment has been made, and (b) with
over
spread
terially to
homes:
'
concen¬
the
and
durable
above
hArrnur-
and buy¬
of mortgages, to find
ways and
means of
making these
is
question; namely, does gov
line
ers
found
ought
of
the
people.
What is needed today is for those
engaged in mortgage banking, as
without
consumer
goods.
)
.i'..'!'.
the
.
debt
•>
i
> manage-
;C:.i
!
While
a mortgage obvi¬
ously is much longer, so far as it
rests
the
on
mental
credit
it
agency
of
a
govern¬
a
is
riskless
asset.
the
current
of
period
and
a
tem¬
porary reduction in the volume of
employment, it is understandable
that
some
developed
apprehension
have
may
the
over
expansion in
mortgage credit.
Such periods of
readjustment should be consid¬
ered
normal
omy
and
in
a
dynamic
particularly
economy has shifted
to a peace basis.
econ¬
when
from
a
the
war
However, as the
readjustment corrects itself and
the dynamism of the
economy and
increasing population, family for¬
mation, and employment opportu¬
nities reassert
themselves, it will
once
the
not
dgain become apparent that
volume
of
excessive
mortgage
and
creased volume of
will
be
required
nation's need for
housing.
v-.
debt
that
is
in¬
an
mortgage credit
to
finance
more
..
,
.
acquire
to
mortgsges
enterprise
ernment insurance develop exces-
The next question that arises is
whether it is economically sound
for investors to buy mortgages on
:
inue
families
and
groups
sive
in large
amounts which will compete with
ArrrforfDC?
several
Once
rinns
otfer 'ong-term securities
vtt*
in
preferred
considera-
on
that
homes, it is quite evident that the
responsibility, of making insured
and
/
Re¬
government to
individuals
liquid
consider-
a
one or
institutions.
simpie.
Is Home Financing Unsound?
rfai estate values will pace with the demand for it. In
increase
indefinitely, fact, if the supply of mortgages
yur economy is a dynamic one had not been as large as it actu-
con
Administrations
lower-income
is
gages
able ^xJent be met through the
sale °f ta,Z anticipation notes. As
regards refunding operations, it is
n?£ llkely £hat the Treasury will
of
SIOLfps* ,9ne „can ^on is given to the fact that
C "?10n' therefore, American corporations are rely•gGr
ing increasingly on internal re-
va
imnuf'ti,
of
consisting of amortization
on sinking funds
^ e neea f°r many instances
fnnnmcx Cli9
irtu/pr
-ihxi
,up
..
recognized
"rolling readjustment"
rniKintf^nfi!,^ the Piesident
g
ip
been
Democratic and
the function of
is
In
for modification of the
FHA laws
to enable that
agency to insure
mortgages on old homes to the
has
it
by the
achieved, the creation of a broad
secondary market for FHA-insured and VA-guaranteed mort-
the Treasury
naJ- larSe and'will to
were
la4g
over
zation payments to
is forced to borrow in the second
half of the calendar year. How¬
ever, the
amounts involved are
de_
compared with
both
agsure uniform servicing and the originators, distributors,
be onW a little ovei $200 million,
and ^or ^be fiscal yeaf 1954-55 a
substantial and rising as evidenced by deposits in mutual sav-
are
sisting o( cash
While
bonds suitable for investment by ing boncis issued by the Public has not developed excessive mort¬
institutional investors other than Housing Authorities. While these gage credit. The amount of
commercial banks. So far as the obligations are issued by local mortgages outstanding, while
budget deficit is concerned no- housing authorities all over the large, is not beyond the
ability of
body of course, can tell how large country, their credit standing rests the mortgagors to pay the carry¬
considerably through the monetization
u
the
increased
was
'
ment.
years
not
,
omy
is in a downward trend.
Similarly, it is of importance that
the debt management policy :cf I
the Treasury be coordinated with
the housing policy of the govern¬
gov-
and
.
power,
and to stimulate it when the econ¬
to
here
whether
SOUnd
not
may
of
question
much
or
that
willing
VA Mortgages
Conventional
0.2
+
While the
vvnue tns
ma¬
years provided
amortized, there¬
increasing
the
owner.
Since the
Marketability
?mG "worship m the United would have been lower than they
St.a
W0Vld
+have been as are todayWldGSpi'Gad as 11 13 today'
There is a Possibility that the
«
mort¬
mortgage
a
30
or
is
V.A. Guar-
Insured
4.1
and
case
place its
credit behind
mortgages with a
maturity beyond 25 years, there
is no reason why investors should
not acquire such mortgages.
4-Family Nonfarm Homes
4.3
indicates
the
homes, and since the
ernment
be
may
•
63.3
1953
15
regularly
constantly
by
war
18.5
trust funds at the end of 1953
pay-
existing
low-income tami-
In addition
uation
it
requirements.
F.H.A.
Total
End of 1945
in
tures
in
guaranteed
or
whether
gages
order to meet its present
difference
no
insured
—Government Underwritten—
ernment securities, and equities in
im
amounts, with low initial
les
new
.
-fu1?
ncf
rat
that
hlnl
nf
ennie
™
of
the
Savings in the United States !' wdl tae- 11's' however, comfort- on the Federal Government; ar-d
have undergone a considerable mg to note that according to the hence they are treated as riskless
time
change in the last tw0 decades- H f ^ MeISSage ?tf the President, assets. The main problem is the
m£ They have become increasingly the Federal deficit on a cash basis creation of a system which will
;!vnWeH aJh.t Pw£t™S„T".St
•iiyoided that would make
is
unem-
from
at
nosl
Provide aggressive anri
there
sickness
Looked
of view of safety, it should
Govemment
live leadershiD
citizens
serviced.
Qfe the ° Qa* Point
make
(In billion dollars)
of government funds?
use
i?
n
by
has
y
from the following
1- to
on
Once the govit would
be in a position to retard home
building
in
periods when the
economy is operating, at capacity
payment.
assist
familv
spreading of home ownership
seen
of
ernment has this
publican
extent
since the end
in-
Composition of Mortgage Debt
were
secondary mortgage
hp
homes resulting from the
on
term
mortgages
on
to extend or shorten the
as
PZmlS
.
they
on?
a
the
1A,
rests
well
the credit of the government; and
of g°vernment insurance
level
effec¬
more
tively in industry or in trade?
(3) Is the metnod of financing
homes sound, or will it lead to difLculties
a
(2) The sharp inciease in prices
°*
savings of the
people, and has the situation de¬
veloped
where funds were
in¬
in
low
at
ultimate risk
-16) The easy term.s under which equity"7f"the"
vfterans coald acquire homes also government is committed to assist
Pla^d an important role in this individuals, particularly those in
development How great the role the lower -income brackets, to ac-
residen
J ^itv wL
,
Is the supply of mortgages
that
in
given the power to raise or lower
as
in such mortgages, the main concern of the mortgagee 1S to see
that the mort2aSe is properly
d.
.
gome
needs and
policy of the Treasury. It is
important that the government be
also contdbated
.
caused
come
oeriod (1940-
war
shows
Spec^
ployment, and old age, it'is more
willing to mortgage its future in-
viCVC1-
out of line with the
vested
"learlv
945>
economic se-
virf.7^1
.
leagt tQ
is insured or guaranteed by
governmental agency. In this re-
a
^fal^^ribu^
°
<
X
y
mort-
a
gage
"yea
as
fies
home
of
acquire
years
in_
.
,
sWbii-
Are there too many homes
in existence, and is there
i(l)
number
case of a conven¬
a mortgagee may
^ge with a maturity of over 25
The situation, however, is
entirely different where the mort-
eon-
"""
(5) The enhanced
iog the war. At the end of 1940,
whether
government insurance the amount of outstanding mort-develops excessive mortgage cred- gzge debt on 1- to 4-family nonit, the following questions have
dw
now
be unwilling to
the
to
*
The almost complete stop-
be answered:
the
owners
Before considering the question
lo
from
ment
the rate of interest
question
1mortgage. It is quite evi°he
dent that in the
t'onal mortgage,
and
movement
materiall
{n
creage
.
sucli mortgages.
the
may
when he has
the insurance and the guaranty
^
the
g
property
as
is whether a mortgage with a
maturity of over 25 years is sound,
The answer will depend primarily
on
congested cities to suburbs
The mortgage
ening of maturities of mortgages, 1953.
the
annual
carrying
The sharp increase in mortgage
charge, and has been primarily debt and related building activity
responsible for the willingness of since the end of 1945 reflect the
financial
institutions to
acquire following developments:
reduces
in
the
equity in it.
An entirely different
'
q{ ^
birthrate,
decentralization
debt oa s.ucb dwellings rose from
$18.5 billion at the end of 19451 to
$45.1 billion at the end of 1950
and to $65 billion at the end of
—
costfree
not
rise
the United St at es on
1-1to 4-tamily
^°pfL
ties increased sharply since the
mg in
by
^uuicicai
^ o( u
down-payment,
no
same
an
stimulated
war
makes
interest in
(4) The increase in the stand- °£
savings^of the
collateral
the
the demand for homes.
.
*nented
not be the
lation and the large volume of
/family formations which occurred
Credit?
Excessive Mortgage
prevailed throughout the
postwar period.
The a.d granted
ts the government may be con-sidered
a
"subsidy"
since
the
credit of the individual and of the
his
building materials
notably labor contributed in
significant degree to the increase in
mortgage volume.
(3) The sharp increase in popu-
from page 13
which
gagor
and
a
Continued
Thursday, March 4, 1954
.
the
and better
,
j
.
Number 5304
/olume 179
Continued from page
The Commercial and Financial Chronicle
...
a
16
will
in
thereafter
closely the
output
fairly
follow
should
1954.
in
out
turned
be
and
pattern
of
black
although production
growth
white,
may
in the early
increase faster
years
know-how on
the part of set makers. At best, it
is likely to be 1956 before a true
greater
reflecting
market for color is attained,
mass
and
it
that
saying
without
goes
black and white television will be
the principal source
the
to
set industry for
important
The extensive research facil¬
ities of
well
fitted
this
to
contribute
to
sets,
of
markets and the defense program,
picture
parable
The
size.
con¬
will then decide how much
sumer
the
of
white sets of com¬
business will
set
be color
how much will be black and
and
thing to re¬
of sets
quantity for as
white.! The important
market
electronics in the field of in¬
controls
dustrial
computers
and
scientific
both
has
business
and
will
sold
be
in
I can see into the future.
as
the
of
One
indications
best
know
black
auto¬
manufacturing processes
and this too should ultimately be
important market, although it
an
take several decades to bring
about the truly automatic factory.
I
No
for
knows
one
what
sure
the industrial market are,
but they almost certainly run into
hundreds
of millions.
Although
this
obsolete is the fact that
television
equal the dollar importance of
radio
television
and
military
supplanted radio
and
gives
there
Today
so.
approximately
are
radio
million
120
of doing
signs
no
in
sets
use,
lo¬
nation's
than three-
and
in
more
quarters of the cars on the road.
The number of radios is increas¬
each
ing
year,
per home
mand for
greatest of all.
slightly
from
million
7.1
of all
types
by
a
million.
Armament Program—Biggest
Customer
the biggest single cus¬
of the electronics industry
Korea,
tomer
has
dollars,
the
To
I
shall
chalk
In
still
be
there
the
public
be
may
there
confusion
some
of
that
fact
the
of
view
in
the
about color,
drop
a
may
of
modest
proportions in sales of TV
especially if unemployment
and
increase
to
peak levels.
sets,
con¬
is
impaired.
experience
has
public will buy
power
past
of
purchase of electronic equipment,
billion actually spent
In 1953 represented
60% of the
and the $2.8
military
II.
At
volume
the
same
time,
so
was
the
more
marked than it
during the last war that there
does
hood
the
much
likeli¬
significant decline in
not appear to be any
of
a
industry's
sales
of
auto
sets
about
to
market for
a
total of
a
million sets of all types.
I look for about
of
radio-TV
Thus,
business,
$3
about
billion worth of military business,
and
about
industrial
million worth
$700
of
equipment and replace¬
ment parts.
One of the
greatest assets of the
electronics industry is the diver¬
sity of its markets.
scratched
fields,
We have only
the ' surface
in
many
of which should some
some
military
the industry
will
sumer
who sell to the con¬
be prepared to meet
TV
sales should
of
broadcasting
in
stations
facilities..
the
have
bands
be the expansion
air at the rate of
cent
months,
stations
to
be
industry will continue
at
66
East
National
in
in
more
1.954.
and
should
in¬
Of
use,
than
the
500
27
by
the
million
end
sets
of
now
only about 3.6 million are
equipped for UHF reception, and
represent only onebusiness will remain at high levels
these in turn
46th
70th
in
Building,
Avenue
Street,
City's
Donald
this
branch
is
in
J. G. White & Co., Inc.,
that
John
Beutel
G.
Merchants
he
Presidents.
City's complete world¬
banking facilities are avail¬
able at Forty-Sixth Street Branch.
Pippitt,
National
Chase
has
Allen
S.
the
New York
Bank,
appointed a Vice-Presi¬
dent of the Bank, Percy J. Ebbott,
President, announced.
the
time
same
directors
named
the
board
the
David
Beebe,
Clarke
C.
of
following
Assistant1 Cashiers:- John'
new
E.
and
public util¬
Frederick
G.
department.
also
Coqueron
official
appointed
was
staff
as
to
petroleum
as
26
Stephen
of
ceeds
Trust
of
Loan
was
Department
first employed by
President
he
He
1935
and
1938.
In
Assistant
1953
became
a
he
1945
is
Department.
of Manu¬
member
Committee
dent's
in
Assistant
assigned
to
and
a
and
"Presi¬
facturers Trust Company's
Employee
o n
Relations," which visits all offices
and departments to talk with em¬
ployees, learn their problems and
survey the conditions under which
they work.
States
United
ft
Government
William
bond department.
Mr. Beutel had been in the gov¬
ernment bond department
of Man¬
ufacturers Trust Company for the
past
16
years,
where he held the
assistant secretary.
title of
Co.
Inc.
White
&
been
had
years
as
at C.
F.
this,
Prior
Co.
associated
to
with
Vice-
President and Director.
it
New
the
Pittsburgh Stock Exchanges, have
branch
a
Bank
and
Trust
the
in
office
Building
under the direction of Richard
G.
CORRECTION
position of
created
for
sys¬
,
-
1934,
messenger.
Stratford has joined
as a
Milton
the
staff of Citizens National Bank in.
the newly created position of
reaL
estate
appraiser for the bank's;
system of 14 offices in Riverside
and San Bernardino Counties.
*
*
*
Harking the completion of the
first stage of its present building
program, The Farmers and Mer¬
chants National Bank of Los An¬
Calif,
geles,
larged
its
opened
new,
en¬
Department
Escrow
on
March 1.
;
These modernized facilities will,
be
Collection and Per¬
Departments. Located at
West Fourth
116
the
on
will be the Mort¬
as
Note
gage
sonnel
of
located
conveniently
ground floor,
the
Bank's
trance,
double
the
Street, just west
Fourth
Street
en*-~
quarters
will
the present area of thesenew
departments.
completion of these facili¬
ties is
an
important part in the
ex¬
pansion program of The Farmers
Merchants
National
Bank
of
Los
*
*
bank's
the
Mr. Bridges began with Citizens
in
an
Angeles. Presently under con¬
struction are new banking vaults,
which- will
be
the
largest and
in the West available
secure
banking
ft
American
the Citizens Bank, Brooklyn, New
February 25 at the
ft
use.
ft
Trust
Company,
San
Francisco, Calif., has absorbed tne
National
First
Bank,
Los
Gates,
Calif, effective Fqb. 15.
of 64.
ft
ft
Banking Department of the
State of New York gave approval
The
Feb. 24 to the Hempstead Bank,
increase its
capital stock from $720,-
Hempstead,
common
N.
Y.
to
Batchker, Eaton Co. Form'g
Batchker,
Eaton
New
bers of the
&
Co.,
mem¬
York Stock
Ex-,
change, will be formed March 15
with offices at 120 Broadway, New
York City. Partners will be Joel
value of $10 per share to A. Batchker, member of the Ex¬
Jerome
A.
Eaton,
and
$800,000 consisting of 80,000 shares change,
Philip A. Batchker.
of the same par value.
000, consisting of 72,000 shares of
ft
the "Financial Chronicle"
Alfred
J.
Bear
this
partner;
also
Krensky
New
was
listed
should
have
as
a
been
In the
same
item
indicated
that
Mr.
Alfred J. Betar.
was
was
a
York
floor
Stock
broker
ft
*
I
of
reporting the formation
of Arthur M. Krensky & Co., Inc.,
the
Formerly
26.
Carl S. Heidenreich, President of
George W. Hall, Vice-President
Feb. 25 in
it
newly
the par
Smith.
In
the
most
on
has been elected
by the Bank's Board of Directors
for private
on
Citi¬
Riverside,
Bank,
Calif, since 1944,
and
activities of the trust
He joined the staff of
the Irving in 1932.
died
,
auditor of
National
zens
months ago.
it
Bridges,
company.
ft
and
York
Lynd
an¬
Vice-President,
he
is
with the international
*
19461
department in the San Fran¬
banking
age
McKelvy Branch
of
Assistant
York
WARREN, Pa.—McKclvy & Co.,
members
Feb.
Irving
York
New
Company,
on
since
bank
cisco office previous to his trans¬
The
been
has
Vice-President,
a
nounced
W.
D.
Rich & Co. for 11 years, as a
New
Trust
ft
it
Graff
F.
he
Vice-President
Assistant
Childs
three
after
named
associated
Mr. O'Connell joins J. G.
&
the
of
fer to Oakland six
an
the Installment Loan
also
advanced
Comptroller
Vice-President
He
supervisor
was
appointed
was
chief clerk
branch
a
the
in charge of the new busi¬
was
ness
and Trust
a
1932.
of
San Bernardino counties.
Chatham-Phenix National
the old
head
as
of
Feb.
on
Bank.
the
Mr. Casko
to
its
Hall
•
suc¬
office, of Crocker First
National Bank, has been a Vice- '
Company,
announced
Installment
in
in
Mr.
who
Jr.,
tem of 14 offices in Riverside and.
dent. Mr. Casko is associated with
the
Fran¬
Oakland
Horace C. Flanigan, Presi¬
by
Crocker
San
F.
Vice-President
a
thr
:;<
ft
was
Na¬
;
Pratt,
Comptroller,
in
O'Connell
become
to
Charles
to
it
First
cisco, he served the bank in manycapacities. He was made a Vice-
Robert B. Rivel, bond department;
ities
the
First National Bank of
of
been
At
when
President in 1941.
«
Mr.
1926,
tional and Crocker National Bank
merged
National
wide
through the merger of that bank
J.
he
until
G.
Sikes, Jr. and Wil¬
Gridley, Assistant Vice-
G.
in
Edw.
Alameda,
Bank of San Francisco. From then,
liam
in
career
Company in 1925
messenger,
and
came
to
Manufacturers Trust Company
Beutel
of
Frederick
Bank
G.
Savings Bank of Oak¬
native
A
began his
1919,
is
in
charge. His official associates are:
as
John
named
was
operations in
January, 1947 when Crocker First
merged with
the
Farmers
and
Company of San Francisco, fci
1915 he joined the First National
since
area
banking
Edward
joined the firm
J. O'Connell have
years,
town
New York
37 Wall
and
40
Oakland
started his banking career around
1906
with the Mercantile Trust
Manufacturers
Street, New York City, announced
of
land.
M.
Appointment
J. G. White & Co.
nearly
head
Blodget, Vice-Presi¬
dent, who has worked in the mid-
Casko
coming on the
a day in re¬
the number of
Located
of Park
Greater New York.
to come.
Beutel, O'Connell With
one
operation
1.
Central
west side
industry
growth
strong
a
for many years
UHF
from 356 at the end of 1953
crease
York
the
analyst.
our
the
New
and
VHF
been
March
on
New
on
believe
Warren
1954, and it is my firm conviction
that this important segment of our
on
Exchange;
future,-despite third of the 11 million homes al¬ while holding an Exchange mem¬
reductions which may take ready within range of UHF sta¬ bership, Mr..Krensky states that
tions. Furthermore, an additional be has never actually acted as a
place in total defense" spending.
floor broker.
The importance of electronics in¬ 15 million homes within range of
for
the
the
opened
One of the chief sources of new
to
any
opened
level of defense work leads me to
people consider
in which to buy
I am sure those in
this demand.
equipment. There should be a fur¬
ther rise in defense
volume in
for the foreseeable
,<Mr. Hall, who has been asso¬
ciated with Crocker First National
and Richard F. Hardy,
size
in
surpass
year
durable goods.
Bankers
and
The National City Bank of New
whole
present radio-TV business. Add¬
ing to these a continuing high
day
many
good
a
OFFICERS, ETC.
$1.3 billion worth
buying intentions in¬
consumer
1954
of World
diversity of electronic devices for
both offensive and defensive uses
Is
of
fiscal years more dicate that
Government
funds have been obligated for the
peak
II
for
drop
a
units, but I believe there
should be
consumer
of military electronic shown that the
ten-fold since 1950, television and radio sets if they
while at the same time maintain¬ are competitively priced and well
ing output of home radio and tele¬ merchandised and recent surveys
War
4 million
up
tronics industry does not
has been able to raise However,
billion
demand
be
may
up
production
equipment
$12
in
radio, there
the outlook for 1954,
be surprised if the elec¬
sum
purchasing
than
In
substantially in size in
near
future
reflecting
the
rather remarkable that
In the last four
proximately equal to that in 1953.
should
and
BRANCHES
York's Forty-Sixth Street Branch
increase
is
vision sets at close to
to
ap¬
business of the order of a
a
billion
half
tinues
it
forward
This is al¬
in operation.
now
the armament program,
the industry
look
production in the second half
military, which
and
civilian
both
been
and
fully apparent, and
can
we
devices,
electronic
of
quantity
minds
Since the outbreak of hostilities
in
think
to large output of original equipment
in in the past three years.
last year,
7.7 million
sharp increase in auto
5.2 million from 3.2
Single
availability and high cost of
parts for the huge
another increase in total sales.
to
radios,
the lim¬
once
up
,
for replacement
1952, but this was more than off¬
set
pick
growing market is that
Another
ratio having
household ready
home sets
early part
opinion de¬
equipment for a good many,years,
its rate of growth may well be the
per
at the present time. De¬
down
was
We may not
of the year, but in my
will
million
-
are
end of the war to about 2
the
at
the
IV2 sets
risen from
segment of our business may
not
cated in about 94% of the
homes
justify the
5.8
the
in
rate
and
year,
will
about
of
this
reach
electronics indus¬
the sales of the
television
itself has not yet
NEW
REVISED
ac¬
may
white
and
this
black and white sets.
try to
is not going to
of that clor
make
the
about
heard
been
mation of
member is that both types
long
demand
there is another important
and
and
this
production
I
entertainment
the
from
Electronics
of
the
black
for
that
retail
color becomes
Use
Industrial
data-handling, as well as in new
the - number of
applications in the automobile and
other components
air .transport
industries and in
used will be from two to twohome
appliances.
Products for
and one-half times as great. Con¬
these markets range in size from
siderable development work will
relatively simple devices such as
also have to be done to reduce the
room
air-conditioners to highly
high cost of the picture tube,
complex computers. There is quite
which now. is six. to-eight times
a
problem of maintenance asso¬
as expensive as /a black and white
ciated
with the
more
advanced
tube.
However,'it is' the general
types, and further developments
opinion in the industry that with¬ in semi-conductors; printed cir¬
in three or four years the cost of
cuit
techniques,
and
miniature
color sets can be brought down to
sub-assemblies will be helpful in
a
range of 25 to 50% above that
coping with this problem. Much
white
many
at
ited
for
more
especially
are
sets
armaments.
they will; probably have about 36
tubes
against ,20 in-black and
cost
industry
our
lion
mand
for
will
sets
Taking all these factors into
development of advanced types of
certainly, always
than- black and white;
color
elec¬
through
control
automatic
tronics becomes ever more essen¬
tial.
CONSOLIDATIONS
NEW
The Immediate Outlook
more
duce the time for control decision,
Aside
complexity,
their
of
use
higher count, I believe there should be
higher operating speeds re¬ a market for very close to 6 mil¬
and
News About Banks
only
in
now
CAPITALIZATIONS
and
weapons
become
of the sets
the
popular sizes larger
than 17-inch, and. 20% are prob¬
ably over four years old.
are
for example, as
complex;
.
Because
both
as
creases
in
since
market,
about 30%
of Markets
counter-weapons
of revenue for
several years
come.
television signal have no sets at
as yet.
The replacement of ex¬
isting sets should provide another
Asset: Diversity
Increases
57
all
Electronic Industry's Great
sets
(1033)
in
Eastman,
charge of the Oakland opera¬
of Crocker First
National
Dillon to
Admit W. S.
tions
Boothby
Francisco, Calif,
PHILADELPHIA, Pa. — East¬
brought his banking career to a man, Dillon & Co., members of
close
on
Feb.
28,
1954, having the New York Stock Exchange, 011
Bank,
San
reached retirement age.
He
was
succeeded
by
March
Pratt, Jr., Vice-President, who has
been
No
with
other
the
bank
personnel
contemplated.
for
11
will
admit
Willard
S.
Charles Boothby, Jr., to partnership. Mr.
45 years.
changes
are
Boothby is manager of the munic¬
ipal department of the Philadel¬
phia
office,
Street.
225
South
Fifteenth
58
(1034)
The Commercial and Financial
Chronicle
Continued
from
4
page
percentage figures for last
1
117,547,470 tons
The Slate oi Trade and
past their expectancy and continue
market in check, "The Iron Age" points out.
gered
ing
as
to
Industry
hold
the
overall
Leading the bullish factors, the construction business is hold¬
well.
Fairly open weather kept it from slipping as much
might have been expected during the winter.
And prospects
Exports
country goods
and makers of
and
consumer
are
1
down.
linepipe continue in
durables
are
setting
a
strong demand,
solid, if not spec¬
Probably too much
expected of the auto industry. Febru¬
ary production was off 3% from January, and if March shows an
improvement it will be oply because of three more working days.
The auto industry isn't going to produce its original March sched¬
was
bounce
the
market
durables
Car
might have gotten from
overall
(3)
buying;
adjustment
economic
activity,
con¬
This
712
concludes
or
with Kaiser and
"Ward's"
been
able
113,659
Willys only in token output.
announced
0
estimated
by Packard for the current week,
day.
163.
was
A
street
pre¬
Output Scheduled to Drop 3.1 Points
31
well in the steel business as it had been expected to.
substantial reductions are being made in steel
on
a
further
year
ago,
represents
the
the prewar
Commodity Index Holds
of
1949
when
a
recession
causing
was
this company began to see an
improvement
for its products and
said, "We think the turn upward
come," reports this trade
correctly sensed that the inventory
Some months later it
was
evident the
com¬
"Steel."
sales, while down from their peak, have
prices. Reflecting this
not gone to pot is the firmness of
standard
firmness,
"Steel's" price composite on finished
for the tenth consecutive week.
steel
is
$113.91
per net ton
Meanwhile, this trade publication declares, steel ingot
duction is reflecting the
easing in demand for steel. In the
i.
Iron
and
Steel
Institute
announced
that
the
operating rate of steel companies having
96.1% of the steelmaking
capacity for the entire industry will be at an
average of 70.5% of
capacity for the week beginning March
1, 1954, equivalent to
1,682,000 tons of ingots and steel for
castings, as against 1,756,000
tons and 73.6% (actual) a week
ago.
The industry's ingot production
rate for the weeks in 1954, is
now based on annual
capacity of 124,330,110 tons as of Jan. 1, 1954.
For the like week a month
ago the rate was 74.4% and
pro¬
duction 1,774,000 tons. A
year ago the actual
weekly production
was placed at 2,262,000 tons
or
100.3%. The operating rate is not
comparable because capacity was lower than
capacity in 1954. The
by
with
were
level, however,
noted
remained
high
below
early
1953
279.53
on
to
the
unsettled
in
the
Dun
a
39,200,000
a
the
previous
&
corresponding
in
in
the
trended
higher,
reflecting
more
CCC
holdings
and
more
export
a
bales, against 131,400 a
170,200 two weeks previous.
the
Feb.
day,
per
as
Retail
1954,
the
ended
Feb.
was
re¬
*Jan. 1 to
department
store
decrease of 1%
a
corresponding
trade
however,
was,
the
period
in
New
a
year ago.
last
level
There
wide variation in
a
estimates
York
same
of
individual
mer¬
chants, reports state.
According
to
Board's
serve
same
the
the
Federal
index
Re¬
department
New York City for
weekly period ended Feb. 20,
1954, registered
an
increase of 2%
above the like period of last
year.
In
the
1954,
preceding
ported
week,
increase of
an
week
from
of
that
Feb.
of
13,
was
2%
re¬
the
similar
1953, while for the four
weeks ended Feb. 20, 1954, an in¬
active
of
2%
was
reported.
For
the period "Jan. 1 to Feb.
20, 1954,
an
increase of 1%
over
that of
the
was
1953
inquiries.
•Comparison
Jan. 4-9
5-10
week
week
in
Joins
aver¬
period
in
1954
registered
period.
begins
and
with
with
the
by Warm (Weather and
Special Holiday Sales
•
V-
M.
Mitchum, Tully
South
I
.
.
ANGELES, Calif.—Donald
Fowler
With
the
Jan.
1953.
(Special to The Financial Chronicle)
Trade Volume Aided in Week
Wednesday^'of last week
^tfarm weather
in¬
In
week.
weeks
the like week
as
compared;.-with 36,844 in
week-ago level,
Board's
decline of 1%
the
LOS
above both the year-ago and
a
from
1953.
day in the December period.
Retail trade in the period ended on
on
taken
week approximated the
148,—
earlier, and compared with
Consumption of th^/ staple during
bales per working
sales
as
For the period
20,
below
of
week
January, 1953, and 32,219 bales
rose
four
a
sales registered
crease
January period, according to the Bureau of the ^Census,
aged 33,941
store
Reserve
preceding
20, 1954,
Sales of cotton in the 10 spot markets increased and'totaled
500
:
recent
week, Feb. 13, 1954, a
decrease of 1 % was reported from
that of the similar week in 1953.
»
numerous
quite
previous
Spot cotton prices continued to trend mildly upward in nar¬
row
day-to-day fluctuations.
Supporting factors included the
gradual increasing tightness of free cotton supplies as the result
the
the
of
ago.
sugar
be
to
were
dex, for the week ended Feb. 20,
1954, increased 2% above the level
ferings from producing areas.
Warehouse stocks of cocoa rose to
83,499 bags, from 79,000 last week, and compared with 78,602 bags
large
Federal
store sales in
trade and commission house buying.
Wednes¬
continued
and
country-wide basis
Trading in cocoa was more active than in recent weeks with
prices rising to new high levels on buying influenced
largely by
a sharp
upturn in the London market, together with' a lack of of¬
of
buyers
Department
i
trending
the
a year ago
on
weeks, more interest was dis¬
played for items of new style and
design.
growers.^ Oats prices
50,100,000
ended
However, in contrast to
prices continued to climb with predictions of
further advances in the near future.
^
raw
period
selective in their buying.
year ago.
Domestic
moderately below
the
Many
Roasted coffee
year
majority
price-conscious
prices worked mildly lower
and
trade
day of last week.
Brad-
date
1
ported.
week,
was
Summer
of the nation's
edged up slightly from
previous week but continued
to be
was
with
and
volume of wholesale
the
the
Narrow Range
with prices generally
marketings by
demand
dresses
markets
"
liberal
somewhat
was
Increased
for
The
some
more
week
pro¬
tons, compared with January's 7,960,000.
American
sales
higher than in the preceding
period.
sympathy with other feed grains. Demand for malt¬
slow; offerings continued light with demand mostly
for choice grades.
Trading volume in grain and soybean futures
on
the Chicago Board of Trade increased
sharply for the week.
Dailyi average purchases of about 50,500,000 bushels
compared
ing barley
a
week
ended Feb. 28, output declined 2
points from the preceding week
and registered 72.5% of
capacity. This rate of output yields 1,730,000 net tons and brings
February's total to approximately 7,060,000
The
and
weakened in
in the country's business conditions has
had
16,
showed
influenced
its
consternation
Evidence that steel
the
clothes.
lifted
week
Corn lacked buying support and
its plant locations and
an
summer
says
pur¬
below
chases of women's coats and suits
For
Wheat
exceptionally good barometer, "Steel"
points out, is just beginning to note a strengthening in demand for
its products. Last year that
company noticed a downturn before
most people were aware a decline was in the
making for the steel
over.
instalment
ratner common.
were
firmness at the close
following early
weakness, reflecting unfavorable weather reports from the South¬
west.
Marketings of wheat in that area were moderate with
high quality wheat in excellent demand.
;
months
One steel company which believes
was
of
somewhat
Apparel volume
sum
irregularly downward.
ago and sometimes people miss
the turn in the trend of events because
they are so overwhelmed
right,
ap¬
a week ago and was
close to the year-ago mark. Pur¬
in
Grain markets
with the present.
correction
all
rose.
car
1952, when the
when 178 occurred and
sharp advance last
index
foods
February
Some
plant operations,
points. However,
merely reflecting conditions that had
pany was
re¬
on
volume
the
higher than
year ago.
and the national steel production rate is down 2
it notes, those events are
company
only
at
level and unofficial price shading
Movements in the Dun & Bradstreet
daily wholesale commod¬
were insignificant in the
past week with the in¬
closing at 275.76 on February 23. This compared with 275.81
dex
up as
The
some¬
stores
items
extremely
was
Mortality continued below
Wholesale
Reporting on the current steel situation, "Steel," the weekly,
magazine of metalworking, says it is true that March hasn't shaped
journal.
were
most
few
a
was
New
ity price index
in demand
and
week
volume
the
total of the price per pound
general use and its chief function is to show the
general trend of food prices at the wholesale level.
daily car assembly, meanwhile, continued to
establish new three-year high levels the past
week, while Chev¬
rolet resumed a five-day week and Cadillac and Ford worked six
days. Termination of a production problem also permitted higher
Lincoln output, "Ward's" stated.
much
ap¬
preceding year.
.
division
the
-fl
2.
Furniture purchases
somewhat higher although
the
wholesale
The
of
In
ycar-
markedly above the
prices,
chases
it stood at $7.21.
until March 2.
business.
the
Regional
the
furniture and
of
rose
Although
were
food price index for
February 23 to $7.20, the
highest level in almost three years,, or since March
27, 1951 when
The current figure compares with
$7.11 a week
earlier, and marks a rise of 15.9% over the
corresponding 1953
figure of $6.21.
1
\
the February decline, "Ward's" said, last week's
assembly slipped to 135,130 cars and trucks from
136,682 the week before, the drop stemming from four-day op¬
erations at Dodge,
DeSoto and Chrysler divisions of Chrysler
Corp. Hudson, as planned, also halted its car manufacturing last
it
above
+5; Southwest —3 to
pliances
Wholesale Food Price Index Extends
Upward Movement
States
make
5%
from
+4; Midwest and Northwest
to
featured
1953 week.
being down 24% from the 1939 total of 267.
Reflecting
mix
to
varied
previous
Failures with liabilities of
$5,000 or more fell slightly to 182
from 184 last week, but exceeded the 141 of
this size in the similar
week of 1953.
A sharper decline
brought small casualties, those
involving liabilities under $5,000, down to 22 from 31 in the
pre¬
vious week and 37 a
year ago.
The number of businesses failing
with liabilities in excess of
$100,000 rose to 23 from 14 last week.
Chrysler Corp. car volume in the month dipped to an
estimated 50,300 from 65,901 and Ford Motor Co. to 146,600 from
154,031.
product
1
what higher than in 1953 as a re¬
sult of
the
additional
shopping
week.
mained above
January.
or
re¬
esti¬
by Dun & Bradstreet, Inc.,
pliances
112,-
(revised) in the
of
was
and Pacific Coast —2 to -f
Dun &
toll
making weeks
to
+ 1
day-shortened week ended Feb. 25 from 215 in the
preceding week,
Bradstreet, Inc., states. Despite this decline, casualties re¬
Another
Despite a combined 10,000-unit cutback at Pontiac and Chev¬
rolet, General Motors Corp. car output increased to 225,000 units
in February, or 50.8%
of the country's total against 46.4% in
their
volume
week
by the. follow¬
percentages:
New
England
-f 4 to +8; East -j-2 to -f 6; South
Business Failures Again Register Slight Decline
it noted.
Steel
the
from
duced
an
would
ing
Commercial and industrial failures dipped to 204 in
the holi¬
said.
Ford
1953
by the independents last
Industry-wide, United States car output dipped 3% and truck
in February, production totaling 443,300 and 86,817
units, respectively.
January netted 456,760 cars and 97,461 trucks,
week
week, compared with
appeared
comparatives
ago
"Ward's" estimated Canadian
plants turned out 9,394 cars and
2,250 trucks last week, against 9,346 cars and 2,229 trucks in the
preceding week and 8,036 cars and 2,178 trucks in the
compar¬
output 11%
United
dollar
in
estimates
0.8%
made in this country, as
week and 28,700 in the like
October to adjust record dealer stocks to demand and in February
found Packard and Studebaker closed one week and Hudson two
shutdown has
last
cars
it
practice
1
The plunge climaxed moves started
weeks,
Ago
industry, "Ward's" states, turned out
and
the
comparable 1953 figures.
was 128,865.
reported, there were 22,418 trucks
against 23,023 (revised) in the previous
4.8% of industry production compared with 25,051 in January,
5.5%.
Not since May of 1946 (20,932 units) have so few as¬
semblies been recorded.
total
trade
be
to
vious week. A year ago the
weekly production
Last week, the agency
counted 21,400 car completions for the producers,
agency
tail
ing to the Association of American Railroads.
Loadings totaled 618,623 cars, a decrease of 70,807 cars or
10.3% below the corresponding 1953
week, and a decrease of 64,928
cars or 9.5% below the
corresponding 1952 week.
The
postwar low monthly output for
independent United States car manufacturers in February was re¬
ported on Friday last, b.y "Ward's Automotive Reports."
or
The
over
Reports."
one-half year,
and
seven
or
that
year,
satisfaction
be continued.
freight for the week ended Feb. 20, 1954,
below the preceding week, accord¬
revenue
cars,
expressed
results
possible
Loadings Show Further Decline for
Loadings of
inaugurated this
merchants
the
where the holiday
areas
were
with
Automobile output for the latest week fell below a week
ago
stemming from 4-day operations at Dodge, DeSoto and
Chrysler
Divisions of Chrysler Corp.,
according to "Ward's Automotive
"The Iron Age."
A
sales
Purchases
is
in
980,000,000 kwh.
Week and Year
appreciably.
In those
Dips as a Result of Curtailed
Operations at Chrysler Corp.
being compensated by these
depressing factors: (1) Bigger capacity, with assurance of plenti¬
ful supply; (2) inventory correction, followed by hand-to-mouth
consumer
special Washington's Birth¬
bargain sales boosted sales
day
U. S. Auto Output
ule, this trade weekly states.
and
and
mated
decreased 5,083
pace.
Whatever
-
Thursday, March 4, 1954
.
volume
the like week in 1952.
actually improving.
struction
capacity of
The amount of electric energy distributed
by the electric light
and power industry for the week ended
Saturday, Feb. 27, 1954,
was estimated at
8,396,000,000 kwh., according to the Edison Elec¬
tric Institute.
Tinplate has been moving well ever since settlement of the
recent strike against canmakers and demand in the Midwest is
tacular,
annual
still
beams
Oil
on
good.
rated
now
based
The current figure represents a decrease of
155,000,000 kwh.
below the preceding week, but an increase of
326,000,000 kwh., or
4.0% over the comparable 1953 week and
Structural are in good demand, with wide
tight.
Bridgework and superhighways are
promising. Galvanized building materials have picked up snarply
at mill level, although warehouses report them still sluggish.
are
are
1953.
Electric Output Drops Further the Past Week
up
flange
year
of Jan. 1,
as
.
.
has
become
affiliated
Mitchum, Tully & Co., 650
Spring Street, members of
the Los Angeles Stock Exchange.
Number 5304
Volume 179
.
The Commercial and Financial Chronicle
.
.
(1035)
The
Indications of Current
following statistical tabulations
latest week
Business Activity
week
or
or
month available.
month ended
Latest
AMERICAN
IRON
Indicated
steel
Mar.
(percent of capacity)
Month
Week
Ago
that date,
on
Crude
Ago
(net tons)
42
Mar.
74.4
100.3
*1,756,000
1,774,000
2,262,000
BANK
(bbls.
average
Gasoline
Feb.20
oil
fuel
Residual fuel
(bbls.)
(bbls.)
output
oil
output
6,292,300
6,542,950
7,030,000
7,018,000
24,585,000
24,421,000
24,241,000
24,123,000
3,120,000
2,843,000
2,753,000
3,065,000
Feb. 20
10,982,000
10,683,000
10,564,000
10,871,000
Feb. 20
8,573,000
8,497,000
8,296,000
9,113,000
—
—
—
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Feb.
(bbls.) at
and
ASSOCIATION
(bbls.)
(bbls.)
175,908,000
167,781,000
20,041,000
24,034,000
—-
at
Feb. 20
69,728,000
73,754,000
91,401,000
BUSINESS
U.
Feb.20
46,215,000
*45,921,000
47,247,000
618,623
623,706
617,226
603,350
662,461
602,299
1
Jan.
AND
AVERAGE
(in
Scrap steel
PRICES
In
months of January
consuming establishments as of Jan. 31
53,300,000
92,519,000
105,577,000
In
public
78,683,000
48,505,000
63,389,000
87,240,000
—1- Feb. 25
31,928,000
4,795,000
29,130,000
18,337,000
7,225,000
7,595,000
8,157,000
8,654,000
583,000
590,000
711,000
632,000
,
Lint—Consumed
86
91
87
—.—Feb. 20
100
Linters—Consumed
Stocks
Jan.
Lead
INDUSTRIAL)
DUN
—
85
8,396,000
8,551,000
8,855,000
8,070,000
204
215
233
178
&
Feb. 25
-
COTTON
(E.
,
SPINNING
(St.
Zinc
MOODY'S
St.
active
Active
spindle
Feb.
——Feb.
.—r—Feb.
———Feb.
——l_;_i Feb.
-
-
at
at
!
,
-1
at
110,742
110,942
1,380,137
1,048,509
19,695,000
20,349,000
Jan.
22.920,000
30
22,940,000
23,082,000
19,652,000
19,695,000
20,314,000
Jan-
8,631,000
9,683,000
11,521,000
place Jan.
431.5
412.0
501.3
30
omitted)
seasonally
$27.67
$44.00
79
182
81
101
100
81
178
80
104
*102
111
113
*115
$152,387,000
$168,314,000
49,345,000
39,862,000
40,498,000
8,717,000
9,244,000
35,971,000
28,870,000
64,579,000
Stocks,
$25.33
'
daily),
101
37,426,000
Stocks,
daily),
unadjusted
$24.33
1947-1949
98
(average
$56.59
FEDERAL
—
January:
9,495,000
(average
Sales
$56.59
Y.
N.
of
FED¬
$191,711,000
Sales
$56.59
'
OF
(average monthly),
29.675c
29.700c
29.625c
24.200c
28.700c
29.150c
28.675c
35.150c
85.000c
85.250c
84.750c
121.500c
12.500c
13.000c
13.000c
13.500c
12.300c
24
24
24
24
24
58,376,000
53,198,000
unadjusted
unadjusted—
seasonally adjusted-
adjusted
12.800c
12.800c
13.300c
9.250c
9.500c
11.500c
9.250c
INSURANCE—BENEFIT
POLICYHOLDERS
Death
PAYMENTS
INSTITUTE
—
INSURANCE—Month
of
TO
LIFE
OF
December:
.
benefits
Matured
endowments
Disability
Annuity
payments
payments
Surrender
DAILY AVERAGES:
PRICES
values
,
Mar.
2
99.47
98.97
98.25
94.76
2
109.60
109.24
107.98
2
2
115.04
114.66
113.12
111.07
111.81
111.07
110.15
110.15
Mar.
2
109.24
108.88
107.80
107.09.
Mar.
2
103.13
102.63
101/64
103.47
Mar.
— Mar.
'—Mar.
2
107.27
107.09
105.69
105.69
2
2
109.97
109.24
108.16
107.44
Ordinary
111.62
111.25
110.15
110.70
Industrial
i
107.80
MarMar.
S.
Government Bonds
.___
corporate
—-4
Baa
-
Railroad
Public
Group—;—
Utilities Group
Industrials
——
:_il
Group
—
—
—
U.
——Mar.
S. Government Bonds
2.54
2
Mar.
^_Mar.
2
2
Aa
3.56
3.32
3.17
-
A
ZII
Baa
Railroad
Public
Group..
Utilities
Industrials
MOODY'S
Group
*
Group
INDEX
of
Unfilled
2
.
2.92
3.00
3.16
3.16
3.23
3.29
3.33
3.59
3.65
3.54
3.33
3.41
3.41
3.21
3.27
3.31
3.08
2
425.6
3.16
3.10
426.1
v
3.13
419.1
415.9
216,205
199,153
'232,-388 M
23.7,563
238,981
••
V
91
"■t'-iY:353,213
94
94
342,885
AVERAGE
340,049
-7*
Feb!26
107.35
107.17
107.25
107.88
AND
DEALERS
EXCHANGE
—
SPECIALISTS
SECURITIES EXCHANGE
Odd-lot sales by dealers
N.
.2,--
COMMISSION:
pejj
Customers'
short
other
1,035,184
963,701
764,041
716,030
13
$39,984,135
$44,463,075
$34,789,631
$31,646,828
(—Feb!
sales
Dollar
:.
Other
*
8,143
3,178
13
980,810
873,346
700,424
634,874
i3
$36,894,623
$38,117,821
$29,045,435
$26,121,196
294,440
257,590
208,970
294,440
257,590
208,970
166,580
Feb. 13
?-Feb!
:
purchases
by
________
dealers—
EXCHANGE
ROUND-LOT
AND
ACCOUNT
OF
MEMBERS
STOCK
—As
of
D6c.
316,610
350,560
280,820
256,400
:
FOR
6
409,910
426,280
321,180
firms
OF
6
8,856,440
9,707,950
6,923,770
Total
6
7,244,950
10,134,230
9,266,350
9,368,880
specialists in stocks in
Total
Total
value
Other
of
(DEPARTMENT
December
Total
Other
.
Commodity
Distributing
LABOR
—
708,790
865,440
NUMBER —U.
6
953,100
1,040,790
958,670
947,670
246,040
297,000
201,770
173,430
6
Feb.
6
18,900
22,900
13,200
16,300
Feb.
6
218,840
299,810
262,730
217,840
Feb.
6
237,740
322,710
275,930
344,887
361,384
299,245
54,520
38,670
32,000
Feb.
6
383,607
423,600
378,694
commodities
6
438,127
462,270
410,694
figure,
Feb.
1,657,714
1,555,787
1,209,805
—
U.
S.
DEPT.
♦52.9
50.1
24.1
22.6
33.5
*33.6
32.8
4.0
3.9
5.1
5.1
5.1
50.4
50.0
51.8
,
income
and
.—
dividends—
22.5
♦22.7
21.5
14.3
income
13.8
13.6
267.2
♦269.0
261.6
Dairy
1,612,307
110.5
130.5
110.9
109.7
94.9
97.3
114.3
*114.4
114.5
113.1
Feb. 23
foreign
♦276
267
*284
*282
♦268
*306
*218
products
♦224
221
$615,500
$24,581,000
$1,316,000
*$1,242,000
*849,009
$f,390,000
—
MARKET TRANSACTIONS IN DI¬
GUARANTEED
SECURITIES
AND
S. A.—Month of January:
U.
Net
sales
Net
purchases
—
105.4
92.3
300
263
285
Poultry and eggs
98.2
*281
263
269
$6,957,500
263,430
1.348,877
98.9
♦218
269
animals
Meat
195,440
105.5
*214
*224
crops
1,449,850
98.0
•269
*205
,
Truck
Oil-bearing crops
Livestock and products.
1,645,294
105.1
428
*269
—
Fruit
2.32,080
98.1
*226
433
*237
1,825,770
105.2
247
*195
*260
1,543,690
Feb. 23
*259
229
427
and hay
grain
Tobacco
TREASURY
*268
234
230
275,100
OF
249
*205
grain
1,628,967
i
of
*254
Cotton
1,343,893
Feb. 23
foods
—
INDEX
AGRICUL¬
1951 = 100
•238
1,353,867
Feb.23
barrels
OF
1 «>()})-July,
15:
Feb.
'
farm and
FARMERS
—
Feed
RECT
:
87.0
52.8
products
Feb.
519,000
*87.7
DEPT.
S.
September,
of December
farm
Food
OF
ftIncludes
—
;-_Feb.
.
other than
188.7
85.9
Crops
•
430,497
§Based on new annual capacity of 124,330,410 tons
of Jan.
1, 1954. as against the Jan. 1, 1953 basis.of
117,547,470 tons.
(Number of orders not reported since introduction of Mon thly Investment Plan.
•Revised
All
374,647
Feb.
93.3
All
—As
55,850
100):
foods
192.5
♦194.5
Unadjusted—
305,023
6
products
Processed
$280.6
*198.3
192.6
income
BY
RECEIVED
PRICES
234,140
6
_
=
rental
nonagricultural
TURE
.
(1947-49
*$285.9
196.4
*
total
payments
191,280
Feb.
commodities—
Farm
transfer
756,390
•_
t
SERIES
$284.7
STATES
COMMERCE)—Month
income
150,240
.
NEW
952,979
billions):
and
808,430
Commodity Group—
All
labor
Other
Proprietors
transactions for account of members—
PRICES.
*1,228,080
contributions for social in¬
employee
820,280
_*—
purchases
WHOLESALE
61,981
1,124,536
■
220,510
—
:_
sales
100,116,011
*233,342
industries
999,330
.Feb.
i
—
sales
120,482,594
99,827,875
138,448
surance
floor—.
sales
Other
117,257,208
101,246,212
Govt, issues—
other collateral
industries
751,420
—
Short sales
Total
123,189,862
bonds
balances—
disbursements—
producing industries—
201,680
—
Total sales
Total
shares
S
employer
964,860
—
sales
Total round-lot
731,781
personal income
and salary receipts,
Feb.
sales
purchases
*712,792
Wage
6
Feb.
Short sales
OF
(in
6
the floor—
off the
30,790
332,256
741,097
U.
PERSONAL INCOME IN THE UNITED
6
purchases
initiated
$1,345,031
*31,019
*301,172
24.2
listed
Member borrowings on
Feb.
i
transactions
*$1,696,463
34,074
free credit
listed
of
value
Feb.
Short sales
Total
$30,433,000
310,857
banks in
In
and
Feb.
;
sales
Other
*$30,807,000
which registered—
sales
on
——'
customers
of customers'
Total
—
Other transactions initiated
24,706
4.0
hand
on
balances———
debit
net
to
Market
Total
'
Other
i.
*24,304
accounts—
margin
carrying
Personal interest
MEM¬
purchases
Short sales
$44,190
Jan.
Member borrowings on U. S.
9,047,830
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of
of
EXCHANGE—As
extended
Market
321,050
Feb.
Feb.
ACCOUNT
omittedt
(000's
Government
Feb.
—^
TRANSACTIONS
31
customers'
Less
—
19,791
"$46,899
$1,689,558
—
omitted):
(000's
31
Service
(SHARES):
——
Total sales
ROUND-LOT
__i
STOCK
YORK
Total
Y. STOCK
sales
$24,399
*19,924
dollars):
__
Total Round-lot sales—
Other
"$26,975
19,928
SERIES—
of
MONEY IN CIRCULATION—TREASURY DEPT.
TRANSACTIONS
Short sales
(millions
Total
Total
13
Feb. 13
Feb. 13
TOTAL ROUND-LOT STOCK SALES ON THE N.
NEW
COMMERCE)
December
Nondurables
-
•
$3,460,000
SALES
&
Durables
of
:
sales
$3,042,000
$30,783,000
INVENTORIES
166,580
Number of shares—
FOR
8,831
p-ep"
Short sales
Round-lot
638,052
sales
by dealers—
Number of shares—Total sales
*
13
708,567
Feb
value
Round-lot
883,177
987,704
6,894
--Feb. 13
sales
Customers'
l3
peb'
.
Number of shares—Total sales-
1,061,000
24,097
OF
of
Total
_!____
—±
-
451,000
550,000
$46,719
(DEPT.
Month
Cash
..
(customers' sales)!—:
$1,948,000
549,000
Inventories—
Credit
;—>.——
;
value
Odd-lot purchases by dealers
$1,943,000
$26,791
'
_
1,105,000
$3,767,000
Total
STOCK
Y.
(customers' purchases)!—
Number of shares
Dollar
ON
$2,185,000
477,000
____.
—
Member
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
Dec.
.
-
Feb. 20
100
=
of
——
MANUFACTURERS'
NEW
1949
INSTITUTE
omitted):
471,623
Feb. 20
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
—
117,278,000
$417,402,000
198,987
243,978
? *
217,650
.
PURCHASES
INSURANCE —Month
LIFE
(000's
56,837,000
$352,150,000
3.11
3.11
2
Feb. 20
1
of period
at end
(tons)
2
Feb. 20
—
activity
orders
INSURANCE
OF
Sales
i
—
(tons)
Percentage
LIFE
3.29
2.90
■"3.07
•
128,668,000
$481,224,000
;
Total
2.87
' *
(tons)
Production
Mar-
——
ASSOCIATION:
PAPERBOARD
Orders received
:
l-
COMMODITY
NATIONAL
:——„Mar.
^-i.— Mar.
—Mar.
>___
——_
3.28
3.21
3.21
2
__________
Aaa
2.62
2.57
*
3.19
2
2
___Mar.
corporate
Mar.
Mar.
Average
dividends
Policy
Group
MOODY'S BOND YIELD DAILY AVERAGES:
>V
Jan.
on
DISTRICT,
BANK
100—Month
A
.
113,081
19,652,000
31
Jan.
SALES—SECOND
RESERVE
RESERVE
Aa
,
7,288,514
OF COMMERCE):
on
(000's
4.376c
$55.26
Feb. 24
at
Aaa
;
hours
DEPARTMENT STORE
1—— Mar.
U.
Average
i
(DEPT.
in place
spindles
LIFE
Louis)
BOND
1,736,184
QUOTATIONS):
.—
York)
Louis)
(East
902,674
1,681,272
11,952,783
January
of
as
spindles
4.634c
4.634c
4.634c
———,_Feb. 23
_Feb. 23
.——-Feb. 23
—
J.
M.
&
(New York)
Lead
of
678,827
1,401,712
active
Spinning
Sales
ton).
gross
(New
month
757,152
1,736,445
12,083,258
31
Jan.
31
spindles
Average
PRICES:
refinery at
refinery at—_
tin
of
as
Active spindle hours per spindle in
—-Feb. 27;?.
Domestic
Straits
storage
Spinning
Electrolytic copper—
Export
$504,000
COM¬
110,611,000
/
METAL
OF
217,099,000
—
ton)
gross
(per
DEPT.
—
$322,676,000
Feb. 20
_Feb. 20
==
AND
lb.)
(per
(per
LINTERS
78,535,000
kwh.)
000
COMPOSITE
Pig iron
$552,000
YORK—
$171,054,000
ERAL
steel
$77,109
$620,000
NEW
OF
omitted)
96,392,000
INDEX—FEDERAL RESERVE
SALES
(COMMERCIAL
Finished
21,592
*$81,266
INSTITUTE:
ELECTRIC
AGE
11,327
OUTSTANDING—FED¬
BANK
(000's
$149,692,000
—
BRADSTREET, INC.-i
IRON
$44,190
*11,930
*22,437
OF MINES):
S. BUREAU
SYSTEM—1947-40
FAILURES
31
Feb. 25
__—-Feb. 25
1——
_—,—.
STORE
output
PAPER
RESERVE
of
115,113,000
coal and lignite (tons)
Pennsylvania anthracite (tons)
Electric
"$46,899
11,680
22,635
$225,724,000
Bituminous
EDISON
$46,719
,
ERAL
Cotton
DEPARTMENT
dollars):
Feb. 25
Feb. 25
—
(U.
of
:
COTTON
———
municipal-
OUTPUT
9,543
MERCE—RUNNING BALES:
Federal
COAL
8,915
COM¬
Total
ENGINEERING
—
Public construction
and
9,543
^
OF
$81,034
Retail
As
$165,115,000
BRADSTREET,
DEPT.
—
$141,115,000
THE
NEW SERIES—Month of December
COMMERCIAL
——
construction
State
&
IN
January
INVENTORIES
(millions
689,430
592,947
RAILROADS:
—
of
$168,587,000
(NEW)
44,364,000
construction
S.
Ago
Manufacturing
NEWS-RECORD:
Private
STATES—DUN
MERCE
71,506,000
—_____
.
CONSTRUCTION
ENGINEERING
Total
Year
Month
OF
21,357,000
Feb. 20
CIVIL
GOVERNORS
INCORPORATIONS
INC.—Month
156,063,000
19,431,000
at—:—
AMERICAN
OF
177,364,000
———
oil
fuel
20
Feb. 20
at
oil
fuel
Residual
gasoline
unfinished
(bbls.)
Distillate
of that date:
Previous
Wholesale
Feb.20
Finished
Kerosene
OF
thousands)
(in
7,079,000
Feb.20
.
6,321,700
(17,156,000
Feb. 20
(bbls.)
Kerosene output (bbls.)
6,319,650
Feb.20
output
Distillate
December
UNITED
(bbls.)——_.
stills—daily average
to
runs
§1,682,000
7
of
of
gallons each)
Crude
DEBITS—BOARD
BUSINESS
output—daily
condensate
and
are as
Month
*73.6
§70.5
7
INSTITUTE:
PETROLEUM
oil
of quotations,
cases
THE FEDERAL RESERVE SYSTEM—Month
ingots and casting's
AMERICAN
in
or,
either for the
are
Latest
Equivalent to—
Steel
production and other figures for the
cover
Dates shown in first column
Year
Week
INSTITUTE:
STEEL
AND
operations
Previous
-59
crude runs.
.
UNITED
STATES
BUREAU
Exports
..
Imports
OF
EXPORTS
CENSUS
—
AND IMPORTS
Month of Dec.
—
911,000
1,052,254
€0
(IOCS)
The Commercial and Financial Chronicle
Continued from page 10
the
world
and
published
The Canadian
the
financial
private individuals and companies
Y*ho
of
in
and
prepared to, work hard
were
and to take risks.
This should
•
currency.
Now I come to
cision
conclusion, however, that the role
of
the strength
country
my
in
policy
the
and stability
the
field
de¬
major
of
that has influenced Cana¬
unim¬
dian development in recent years
precedented development. Indeed,
—that affecting trade. At the end
of the war, a fundamental choice
the
had
has
creation
under
maintenance
and
present-day
environment
-an
been
conditions
sound
economic
within
a
-of
of
favorable
might
to
and
complexity.
In
it is much more com¬
tion
of
kets.
The
based
Price
amounted to
of
on
of
-ment
the
of
some
issues
But
main
times,
our
and
Similar
the
Canadian imports from the United
States
amounted
to
more
than
You
ment of the
showed
trade
with
selves
tory
of
Loans
outstanding success of price
during the World War II.
moval
lor
their
"definite
can
to
controls
be
over
■clearly
was
was
toward
a
courage,
who
advo¬
for
in-
an
war
turning point. It
marked
Canada
the
that
course
prepared to follow—
vigorous, flexible
econo¬
my, and away from a bureaucratic
years
had
<*ed.
all-out
If
that
t
again
time, I
jprice
be
had
war
have
controls
to
no
would
the
ago,
advisability of introducing
■controls
price
Ihe
ivas
jriot
resisted.
adopted,
the
mart in
Canadian
ada's
which
desire
the
in
high degree
of
likes taxes and most
people like cheap money and
easy
credit.
am not going to suggest
tax
has
been
at
the
snght level,
or that
monetary and
-credit measures were
always just
\ hat was
required.
Furthermore,
*
have no quarrel with
those who
offer constructive
criticism. What
9
dp submit is that the vigorous
policies
ment
followed
and
ment
during
contributed
4o
the
vorable
by the
supported
recent
in
creation
to
no
by
small
of
healthy
govern¬
Parlia¬
years
have
measure
conditions fa¬
economic
C*owth.
A good deal of
capital has come
Canada in recent
years
to
J no
•*eip
in
the
development
of
our
resources and our
industries. That
because of the
apital came
op¬
portunities for profitable
invest¬
ment It came because
prospective
investors had confidence
«
in
in
with
the
It is also
trade
the
ing
Canadian
noteworthy that
restrictions
introduced
our
diminish¬
reserves of United States dol¬
lars
were
the
need
swept away
Canadian
on
dollars,
I
the
cision
much
of
which
from
comes
this
as
soon
as
them
had
disap¬
peared.
bold
lieve,
approach has, I be¬
handsome dividends.
paid
into markets
ume
world.
Without this
thriving
trade, the pace of our economic
development would have been
slower, for in spite of the growing
domestic market, Canada is about
dependent upon
lets
she
as
has
That
out¬
been.
ever
have,
in
external
of
course,
been
pattern
of
our
the
inevitable.
was
Pre¬
the United Kingdom was our
biggest market; now the United
war,
States
much
buys nearly
Britain.
as
this great
The
four times
The
change is
a
for
reason
simple
as
one.
United
States needs and is
able to pay for
many of the prod¬
ucts we now have for sale.
Where
else in the world could Canadians
find a cash market for
over
$2
billion worth of goods?
Let me summarize what I have
been saying about Canada's
recent
growth
based
and
prosperity.
the
on
reserves
and
possession
Both
of
based,
the
fact
Canada
no
that
an
are
rich
favorable
upon
portunities to develop them.
are
op¬
Both
less, I submit, upon
there
has
been
With
regard
to
capital
invest¬
situation
Working towards convertibility
an expansion of
trade is a joint affair in
of currencies and
world
which
all
countries
The risks, in
part.
must
inconsiderable.
not
further
to
will
be
3%
greater
itself
was
an
year
than
1953,
all-time
uct
of
Canada.
vestment
goals of
I
of
two countries and of
our
believe
depends
to
field,
the
retention
economy.
convinced
upon
of
most
us
are
that the best is yet to come, as far
as
Canada is concerned, progress
mitted
C. D.
to
quote
Howe,
being
must
selves
This
field
is
trade.
and
per¬
I
the
Canadian
am
our¬
bold
vigorous
goods abroad
re¬
there is no Canadian,
who is satisfied that the
trade of Canada could not be im¬
proved.
Defense
before
the
pipeline
that
has
built in the world,
pipeline from
and
Quebec.
been
ever
namely, the
Alberta
to
gas
Ontario
It may therefore be
anticipated
that
investment
in
tinue not
end
long¬
a
high
Canada
only in
level
will
1954,
of
con¬
but
well
into the future.
In
my
decisions
garded
in
1954
trade
your
will
be
re¬
being of crucial impor¬
We
and
other
friendly
as
tance.
countries have
great interest in
a
the economic effects of
your
pol¬
icy.
We hope it will serve to
strengthen the collective and in¬
dividual
security of all of
these troubled times.
without
saying that
of the Kremlin
are
us
in
And it goes
the
Much is printed in United States
periodicals and the daily
press
regard
present time,
between the
to
Canada.
there is
United
At
more
States
the
trade
and
Canada than any two countries in
We believe that
in
trade
ready
take
to
There
is
formula
always
restrictions
and
convertibility,
so
made,
made
will
be
they
existing
It is
not for
on
me
to make
the recommen¬
trade will
serve
your
national in¬
not
are
by
us,
do
not
fully convertible and
impose
now
restrictions
part of the free
we
with
any
world.
have
common
mon
Common¬
some¬
a
a
between
folks
common
language, a
heritage, com¬
of
decency and
cultural
standards
good
neighborliness; coupled
common
based
political
the
on
cratic
respect
with
psychology
rules of demo¬
same
for
the
rights
of
in the pursuit of
men
life, liberty and happiness.
All
good
of
which
prehension
these
are
people
that
means
relationship
rests
on
our
com¬
and
not
tolerance,
and
qualities with which
are
generally
automa¬
tically endowed.
It is expressed
through myriad relationships and
intermingling,
larly close
well
as
as
relationships
particu¬
between
two governments.
our
Suburban Electric
Bonds Offered
Halsey, Stuart & Co. Inc. is of¬
fering today (March 4) $4,000,000
of
Suburban
Electric
Co.
first
mortgage
bonds, series A, 3ys%P
due March 1,
1984, at 102.46% and
accrued
interest, to yield 3%.
the
of
issue
underwriter
yesterday
Net
was
won
by
competitive
at
bid of 101.80%.
on a
proceeds
incurred
tions.
from
for
property addi¬
The balance will be used to
pay for construction or to reim¬
burse the
company treasury for
construction expenditures.
The bonds will be subject to re¬
demption
prices
at
general
from
105.46%
special
redemption
redemption
ranging
and
par,
at
to
What does the future hold for
Canada? Is the period of rapid ex¬
pansion drawing to
would
were
an
end?
What
happen to Canada if there
a
recession in the U.
S.?
Quite frankly, gentlemen,
know
the
questions.
ably make
more
tions than I
ada
do
prob¬
predic¬
The future will
which will
compete for
share of Canadian
I
these
to
accurate
can.
devel¬
enable
an
and
has
aluminum,
been
so
forth.
world
is
one
steady in postwar
years, and why Canada managed
to avoid the sharp recession that
so
took place in the U. S.
.We
are
in
Co.
is
en¬
service
is
provided
in
Everett,
Maiden, Melrose, Revere and
Winthrop, Mass. in a suburban in¬
dustrial and residential
area
of 29
miles within 10 miles of
Boston having an aggregate
popu¬
lation of about 255,000.
Electric
appliances
pany
come
are
had
revenues
also sold.
total
gross
The
com¬
operating
of $8,392,101 and net in¬
of
$776,117,
for
months ended Oct. 31,
the
12
1953.
Joins Schwabacher & Co.
de¬
uranium,
That
Electric
principally in purchasing
selling electricity.
Electric
Can¬
increasing
mands, particularly for such basic
products as oil, petro-chemicals,
ore,
Suburban
gaged
square
eminent
are
discoveries and
upon
to
answers
There
ranging from 102.47% to
plus accrued interest in each
and
why the growth of Canada
other
unreality—a
relationship
who
quantitative
trade
on
and
from
to
relations,
tion to speak of the
spiritual fam¬
ily
par,
reason
numbers
States
case.
Among the countries of the free
world, Canada has, as you know,
a special association with the na¬
Mr.
of
word
applied
what ponderous and
pompous
sound. I know it will seem to
you,
as it does to
me, much closer to
the subtle realities of the
situa¬
dollar is
iron
our Minister of Finance,
recently joined with his opposite
air
an
great
prices
nickel
tions of the Commonwealth.
when
Canadian-United
has
two
very
our
Indeed, the
"international"
rather by the governments of
other
countries.
The
Canadian
terests.
Abbott,
between
countries.
but
economists here who could
comments
in
restore
tinue, only the Communists
benefit.
were
intensely and vividly true,
is there a happier state of
affairs
in international relations than
the
conditions of mutual confidence
remove
not
any
or
bear
to
when
the
$3,800,000 of short-term indebted¬
simple technical device by which
objectives can be achieved,
should
rise,
resources
are
we
be
these
we
world
Canadian
on
bound to grow.
It would be
bromidic, if it
ness
magic
no
free
negotia¬
in
part
the
the sale of
the bonds will be applied
by the
company first to the payment of
in what you
may decide to do. If
the
present
economic
divisions
within the free world are to con¬
will
bar¬
tions to that end.
masters
also interested
is
between countries would
opments
Spring of 1954.
vigor.
reductions
mind that the decisions to
nothing tonight with
country,
government
in the general interest and
trade
regard to United States tariff pol¬
icies.
riers
and
(3) The Future of Canada
I have said
further
I am
Canada
are
sale
est
by Mr. Clarence Randall. But may
I say that we Canadians
firmly
believe that you will find that
steps towards an expansion of
The Existing Economic Sit¬
of
the utmost
construction
of the year. The other is the
environment in which
uation in the
ples
the
the
as
ahead,
that
world, and
living of the peo¬
standards of
as
Award
far
further
confident
strategic
opportunities will be pushed with
As
to
supplier of many of the commodi¬
ties needed in the free
which is fully expected to be un¬
der
two
years
will continue to grow and
expand.
For Canada today is a
concerned, efforts to enlarge trade
these
rest
chance to show what they could
accomplish for the common good.
Looking
equally
Production, that
projects, one is the
St. Lawrence Waterway
Project,
of
high level
a
several
come.
have
good
But
sure,
for
to
of Trade and Commerce and Min¬
of
Canada
efforts
exporters
exceedingly
mining
industry to support the
total capital expendi¬
that
ture will continue at
in
is
manu¬
trade
the govern¬
by
Canadian
produced
sults.
The
followed
by
sell
ready to adapt
changing circumstances.
particularly true in the
of
policies
The world
to suit Canadians.
run
be
to
ment
the Right Hon.
famous Minister
our
is not
made
by
impor¬
an
the
in¬
economy
will be reinforced
two
large projects.
I
am
future
flexible, adaptable
a
view
one's fellow
Canada's
that
degree
While
rec¬
in the
common
free world.
Canadian
Also,
the
But
achieving the
We
current
a
prize is great and, at the present
time, nothing would contribute
indicates
this
play
respects,
some
will not be automatic.
that
must
world, is prepared to
policies appropriate to its
position.
during the year 1954, a re¬
of Canadian business
which has just been completed
survey
of
the
dations of the Commission headed
a
with
in
progress
Canada the profits from Canadian
subsidiaries.
the
Enough
and
to state that nowhere in the
world
progress
pursue
tant
in
of
utilities
sectors of
not
The ultimate de¬
inevitably be whether the United
States, as the major trading coun¬
the
reinvest
further
development.
facturing,
countries
convertibility must,
assessment
try
basic
demands
At
rest with those countries.
parent
to
even
as
important element in their
an
in
enterprise and intiative have had
(2)
But
(b) The increasing tendency on
the part of many United States
companies
of
considerable
how
for
course,
are
great United States Midwest.
sterling
the
might be made.
conditions,
time
to the present extreme
con¬
objective
ister
for
Gov¬
they always will be, be¬
every
trade
1947 to conserve
as
were
confidence in the Canadian dollar.
This it has striven to do
by its
fiscal, monetary and credit poli¬
cies. These are often
under attack.
i-iat
as
these
considered
present
would give the following:
experienc¬
were
to
increases
no
tariff.
trade.
Now I
the
at
the economy in Canada is sound.
If I were asked for the two main
the
prog¬
which had been achieved and
ress
in Canada
we
to
towards
Sydney,
be affected immediately by
change in United States eco¬
can
which
of
f
despite the fact that
af¬
policies which would
reviewed
all
During the whole period of our ord
representing
approximately
rapid expansion, there have been 23% of the gross national prod¬
changes
cause no one
were
world.
portance of fighting inflation and
H suppose
feet
imports from
encourage
There
a
their
on
Active steps
Toronto, symbolizing Can¬
fully realized the im¬
maintaining
Canadian prod¬
back
throughout the
and, fortunately,
for
price controls
While direct price controls
ernment has
pre¬
been
have
at
come
pressure
assist
to
were
that
come
doubt
jput into effect without the
slighthesitation. But that kind of
did not
strengthened.
Canadian trade, as you
know, has
attained remarkably
high levels
and our goods are
moving in vol¬
consid-
■cst
v/ar
which
area
of the total trade of the world.
complex
under
was
war.
to
This
four
or
non-discrimina¬
for
get
countries
^economy.
Three
situation
sterling
sterling finances about 40%
now
bankers present here to night will
Retail
sales,
bank
cent
that the decision
a
somewhat
a
pre¬
determination
for world trade inasmuch
tourist
ment
Looking back, it
seen
exchange
The Canadian International Trade
Fair was established as an annual
controls when the
remove
was
retention
period.
now
took
many
Canadian
on
1952.
convertibility for sterling.
This
objective is of great importance
United
factor in
one
the
remove
orderly fashion, un¬
relatively short time
were
Our
the
ing difficulties in earning dollars.
an
of
and
the
their
pursue
traffic, vis-a
States, is practi¬
cally in balance. It is, therefore,
quite apparent that United States
funds are again entering Canada
in very considerable volume as
vis
govern¬
ended, the
all gone. The steady re¬
there
cated
to
taken
ne¬
pledged our¬
we
extended
markets
ucts
were
funds.
premium
nevertheless
into trade
once
countries that
after the
made
•control
"they
Barriers
practices
were
Canadian
a
Trade
service
and most patriotic Canadians.
Government
States
aegis
(a) The continued inflow of
General
Agreement
on United States
capital for invest¬
and Trade.
Our foreign ment
in
Candian
development,
war
controls in
if
willing
to
of the free
parts
follow
to
trade
the
foremost
til within
3%%
a
premium
been good business¬
United
countries of
Canadian dollars is approximately
riers to trade and
overseas
to
between
reasons
by Cabinets which have first
proceeded
tion
any
Tariffs
ment
tribute
gotiations designed to reduce bar¬
de¬
country. To illustrate,
war
Despite this enormous ad¬
balance, the exchange situa¬
had
price control, fiscal and
When the
firmed
verse
Economic
December,
Thursday, March 4, 1954
.
known of the plans of the
conference, Commonwealth
of Cana¬
Canadian im¬
over
of
recall that at that
may
vious
exports
We entered at
trade
men
only
Canada chose the bold approach.
Canada
a
deficit
a
Commonwealth
dian
nomic and commercial
We in Canada have been blessed
with extremely good government
The
all
Canada
prosper
herself
Reducing
jmonetary policy, and trade policy.
d
and
grow
that
world.
that
direct your attention to the
me
issues of
belief
economic
in the economic field since
Conference
clearings, and railroad car load¬
ings remain at a high level and
the
on
she
the develop¬
on
$3,200,000,000, leaving
balance of $766,000,000
decisions—
have
termining effect
ability
$2,400,000,000.
understand.
govern-
of
right
which
■decisions
the
that
economic
the
Parliament
V; Ihsive taken
let
submit
I
is
confidence in the
on
could
All governments make mistakes
tand the Canadian Government is
exception.
approach
ex¬
and
Policies
xio
bold
figure in
a
of Canadians to meet competition
Control, Fiscal and Monetary
*
existing markets rather
development of new mar¬
than the
state.
Canadian
a
timid policy
policy. The timid ap¬
that based on fear of
ing of few chances, the preserva¬
plex than that of running a regi¬
on
what
called
is
mented
Decisions
between
competition. It counselled the tak¬
greatest
jrnany ways
be
made
bold
a
proach
development
free society is a problem
the
be
to
the
in
ments
exports to the
ports.
economic
portant during, this period of un¬
government
countries in
conference
1953
our
..
to the
not lead one
integrity of
wealth
just
indicate
United States in the calendar year
Economy in 1954
investments of
and
efforts
Ottawa
Canadian
our
cess
ift
figures
new
from
Sydney, Australia.
This meeting was essentially an
opportunity to review develop«
that
.
.
1949.
still in the midst of this
(Special to The
Financial
Chronicle)
SAN
M.
FRANCISCO, Cal.—Clyde
Monaghan has become asso¬
ciated
600
with
Market
Schwabacher
Street,
the New York
and
&
members
Co.,
of
San Francisco
Stock
was
Exchanges. Mr. Monaghan
formerly a partner in Man¬
agement Investment Programs and
prior thereto was with E. F. Hutton
&
Co.
Volume 179
Number 5304
...
(1037)
Financial Chronicle
The Commercial and
smaller
Co.'s
Southern California Edison
Calm and Cheerful!
600,000 share block priced at $40.25
reported moving, but slowed
was
Our
by
somewhat
down
"In
the California Com¬
basis for permitting a
last Annual Report, it was
our
ments set by
mission
Reporter's
Report
as
a
first
must
in that region first
stock, even though a
demand was reported out¬
ing
dealers
on
brisk
The
both
market,
investment
issue
bonds,
seasoned
and
has been crowding on
sail like
movement
the
©f
from
a
public utility bond, with a
35-year maturity was brought to
market on a 2.90% yield basis.
tion
Edison Slock Offered
progressive
The
scaling
down
-
is¬
naturally,
in
combination
with the steady
tapering off of
yields in the open market for gov¬
©f yields being offered an new
sues
ernments
high-grade
and
of under¬
writers managed jointly by the
First Boston Corp. and Dean Wit¬
stock
corpo-
with
in
of
the
.threshing
been
persistently over a period
weeks it was to be expected
ahead
©f
used
be
at
is
of
themselves
disinclined "to
prices upward.
at
con¬
the
bal¬
continuing construc¬
a
just
cheerfulness
calm
©f
financing,
new
within
the
week.
There
for
look
to
this
anticipated
now
of
course
the
next
inclination
long-term issue at
less
was
a
time, with a 10-12-year per¬
haps 2y2% bond;now expected.
things
are
pretty
in the investment
all
Since
relative
much
happened
has
what
market
be¬
mid-December,
and
this week in the field of housing
last
tween
provides a measure of the
•change that has taken place.
bonds
December
Last
aggregate of
involving "a
issues,
housing
29
an
$121,220,000 face amount,
with coupons ranging from 2% to
2%% were bid in
by banking
firms at an average net interest
total of
cost to the issuers of 2.741%.
This week
for
issues
with
000,000
to
$119,-
aggregate of
an
some
Housing
Public
a
Authority
interest
cost of 2.338%, a drop of slightly
better than 40 bases points in the
at
auction,
an
$51,309,000
locomotives.
RFC's B & O
Bonds
biggest block of railroad
bonds in a considerable period is
The
destined
reach
to
mid-month
market
after
if things work out as
and
planned
will
sources,
from
come
in¬
$73,470,000
and
the
Finance Corp., now
Reconstruction
in liquidation,
disposes of its Baltimore & Ohio
collateral trust bonds.
Federal agency holds $65,-
addition
In
the
to
managers
selves
coming
to
town
Street.
March
what
in Wall
on
has come to be an off-day
15 turns out to be
company
dends have been paid
cars.
Co.; Drexel & Co.; Eastman,
Dillon & Co.; Equitable Securities
Corporation;
Merrill
Lynch,
&
Wm.
underwriting parSmith, Barney & Co.; Shields & ticipants included: A. C. Allyn &
Company; The First Boston Cor- Company,
Incorporated;
Alex,
poration; and R. W. Pressprich & Brown & Sons; Coffin & Burr, InCocorporated; Estabrook & Co.; Ira
The entire group was composed Haupt
&
Co.;
Hornblower &
of
more
than
180
investment Weeks; Lee Higginson Corporafirms.
tion; F. S. Moseley & Co.; Paine,
other
by the com¬
named interest
21A%, 2%% and 2V2% for
1955 to 1995, set-
The group's bids
rates of
bonds maturing
ting
roy,
net interest cost of 2.36%.
a
large
.80% to 2.65%.
preferred dividends, to $16,716,871
or
$2.64
per
common
from
share.
bonds during the last 2Vz years to
finanre
slum
finance
slum rlearanee and low
clearance and low
This marks the ninth big sale of
United
the
under
housing
rent
California Oregon
of 1937,
investment-
States Public Housing Act
Power Stock Offered
The
amended.
as
dealer
which
group
cessful
Houston
bidder
was
for the
the suc¬
bonds now
Lighting &
Power Bonds Offered
Halsey, Stuart & Co. Inc. head¬
ed a syndicate which offered on
syndicate jointly
,
proceeds from the proposed sale
of $10,000,000 of first
mortgage
bonds, series due March 1, 1984,
which
the
company
expects to
deemed
not
from their
premiums
Interest
n
,
later
than
ui
1989, at
1.
interest,
to
102.189% and accrued
yield 2.90%. Award
of the issue was won by the group
competitive sale on March 1 011
at
a
15
Net
proceeds from
years
j95g
of
Financing
the
program
date, and at decreasing
£or
if redeemed thereafter.
qUjre approximately $20,000,000
on
of
the
State
furnishes
retail
to
72
the bonds is exempt
under
electric
services
communities
and
will be some¬ adjacent rural areas in Oregon
novelty to have the and California, with a total popu¬
boys bidding for an issue at the lation estimated at 229,000.
a
of
a
week-end.
Big Stock Offerings
/
The
was
week's
lifted
new
With Shearson,
^
issue "turnover
substantially
by
mar-
keting of a total of 900,000 shares
of
H'uS' , 0°vernment through the
Housing Administration.
Public
Saturday and it
thing
years
1954-1956
will
re-
of
The remainder of the cost of such pro-
additional
junior equities for two Pacific
companies."
Coast Utility
Among the larger individual isfor which the isyndicate was
the successful bidder are:
Hammill
R. O'Neil has become connected
with Shearson, Hammill & Co.,
520 South Grand Avenue.
24,570,000 New York
new
money.
general redemption prices
ranging from 105.19% to par, and
at special
5,775,000 Territory of
Houston
Hawaii.
5.605,000 Paterson, N. J.
plus
at
the
close
of
busi¬
The sub¬
scription offer will expire at 3.30
p.m. EST on March 15, 1954.
An underwriting group headed
by Merrill Lynch, Pierce, Fenner
& Beane will purchase any unsub¬
Feb.
26,
1954.
scribed shares.
Net
proceeds from
the Sale of
corporate
general
for
The
corporation
has
purposes*.
been
con¬
the possibility
of ex¬
through the acquisition
additional
production facili¬
sidering
pansion
It
ties.
is
also
considering
the*
advisibility
of
pre-payment in.
whole or part of its term bank
presently
loans
amount
the
of
ink
outstanding
$2,100,000,
dun-
1955-57. In addition, capital outperiodically
in the continuous program ot
lays will be required
plant maintenance and improve—
ment.
Penn-Dixie Cement Corp. en—
the business of manufae—
gages in
turing, preparing for market, selling and distributing Portland ce—
ment and mortar cement. Thecompany has eight plants located,
in Georgia, Iowa, Pennsylvania
and Tennessee, with a total annual
capacity of 11,316,000
barrel^
engaged
sale
tion
and
company
principally
of
in
electric energy.
serves
an
area
in
region, es¬
timated
at
approximately 5600
square
miles, in which are located Houston, Galveston and 145
Texas Gulf Coast
Shirley Baker With
Irving Lundborg Ce.
(Special to The Financial
Lighting & Power Co.,
the
generation, transmission, distribu¬
is
the
8,895,000 Camden, N. J.
,
redemption prices rang-
jng from 102>i9% to par,
accrued interest in each case.
The
City.
12,420,000 Chicago, 111.
held
on
^
sues
$24,740,000 Detroit, Mich.
(special to the financial chronicle)
LOS ANGELES, Calif.—Francis
Penn-Dixie Cement Corp. is of¬
fering holders of its capital stockrights to subscribe to an addi-
of
bid of 101.529999%.
in
the principal and interest is provided
of California, by annual contributions by the
incorporated
Stock el $35.50 e Sk
^ $30,000,000 of Houston
.
... .
nfMpd tn ror
Lighting & Power Co. first mort- these shares wil be added to cor£
gage bonds, 3% series, due March porate iunds and will be available-
extensive construc-
utility
Co., Inc.
Penn-Dixie Cement
shares
Inc.
the financ¬
being offered has purchased ap¬
ing will be added to the company's
headed by Blyth & Co., Inc., and
proximately $945,000,000 or more
general funds and will be used
The First Boston Corp., on March
than 75% of the total of $1,247,2 offered publicly 300,000 shares
689,000 Federal Housing bonds is- J? finance the
of common stock of The California
sued to date under this program. j!on program. The company s entire construction program is esOregon Power Co. at a price of
The new bonds are callable 10 tirn9te{i to entail expenditures of
$26.50 per share.
Proceeds from the sale of the years from their date, at the op- about ^4o 30q,q0q in 1954; $29,100,tion of the issuer, at 104% if re000
in 1955
and $17 800,000 in
common stock, together with the
nationwide
&
Pollock
E.
ness
The bonds, which are the obli¬
on its common stock every
since it was incorporated in gations of 15 local housing" author¬
1909, and
amount currently to ities, including one in the Terri¬
tory of Hawaii and one in Puerto
$2.00 a year.
Operating revenue in 1953 came Rico, are being reoffered for pub¬
lic sale at prices scaled to yield
to $140,473,090, and
net income,
at
it*
certificates
the
Webber, Jackson & Curtis; Rey- tional 120,427 shares of capital*
nolds & Co.; L. F. Rothschild & stock at $35.50 per share on ther
Co.; Schoellkopf, Hutton & Pome- basis of one share for each five
year
which
of
Issuance
subject to the authorization of the
White, Weld & Co. I
pany
laws
Vf
Louis,
tives and 125 all-steel, 50-ton box¬
€00,000 of this 4% issue which is offer at competitive bidding later from all Federal income taxes
due to mature Jan. 1, 1965. It has
is
generally exempt from gram to be defrayed from cash
this month, will be used to partly and
been a bone of much contention
refund
outstanding
bank
loans local taxes in the states or terri- accumulated from retained earn©ver the years.
tories of the issuer.
Although the ings and from depreciation and
totaling $21,000,000.
Unless there is a change in the
The California Oregon Power bonds are obligations of the is- other reserves.
date
set
for
opening
of
bids, Company is an operating public suing authorities, payment of the
The honds win be redeemable
March 15, bankers may find them¬
St.
.
provides elec¬
tricity to 81 cities and surround¬
ing rural
areas
in the region
around Los Angeles and in west¬
ern
Tulare
County.
The cities
served include Long Beach, Santa
Monica, and Santa Barbara. Divi¬
A
•;
Brownsville &
Ry. issue is to be secured
by the following new standardgauge
railroad equipment esti¬
mated to cost $2,317,977; 9 dieselvelectric
road
switching locomo¬
major participants in the underwriting
include:
Bear,
Stearns
Sachs & Co.; Har-
Goldman,
are:
sale of additional securities,
The
railroad
equip¬
$3,874,180;
diesel-electric road switching
ment estimated to cost
any
24
riman, Ripley & Co., Incorporated;
average
interval.
The
1954-55 project, about
bonds running
40-year maturities, were taken
at
Of the total estimated
cost of the
from
by the following new
Interstate Commerce CommissionL
Associated in both offerings arer
Pierce, Fenner & Beane; Stone & R. W. Pressprich & Co.; L. F«
to the company's trans¬ fered at competitive sale on Mar. 2. Webster
Securities Corporation; Rothschild & Co.; Freeman & Co.;
and distribution lines and
Associate managers of the group Union Securities Corporation; and McMaster Hutchinson & Co., and
substations.
ternal
and
Browns¬
23A%
standard-gauge
Blyth-Phelps, Fenn-Lehman Group Awarded
$107,500,000 Fed. Housing Authorily Bonds
are
after
total of 17 separate
a
mission
Louis,
The Missouri Pacific issue is te
be secured
The
including today's issue.
of Change
Measure
ditions
St.
Texas
699,000 on new additions and extentions. The major items in the
program
certificates
trust
of
equipment trust certificates, both
issues maturing annually March.
15, 1955 to 1969, inclusive.
The
certificates
are
priced to yield
from 1.60%
to
.95%, according,
to maturity.
1946, the company has spent $491,-
current
and
Inc.
Co.
ville & Mexico Ry. series FF
there
hardly do
4)
$1,845,000
now.
harm
completion
siding the markets showed a ten¬ of a new 156,000 kilowatt electric
dency to simmer down with some generating unit in a new plant
A nationwide investment-dealer
consequent shading of the high adjoining
the
present
one
at
prices
set
on
Monday's rising Redondo Beach, and another unit group headed by Blyth & Co., Inc.;
trend.
v
'\lit:'.
\ of similar capacity at EI Segundo Phelps, Fenn & Co. and Lehman
station.
The program also in¬ Brothers as senior managers subMeantime, there appeared to be
cludes the completion of a dam mitted winning bids for $107,500,more disposition to lean back and
await the
Treasury's announce¬ creating the new Vermillion Val¬ 000 of the $119,000,000 new Fedment of its intentions in the way ley Reservoir, and substantial ad¬ eral Housing Authority bonds ofwith demand sub¬
and
tnid-week
will
&
offering today
$3,000,000 of Missouri
are
equipment
some
little
A
call for expendi¬
during the next two years
total of $124,779,000.
Since
Stuart
Pacific RR. series XX 2%% serial,
program-
ture
buyers
follow
to
for
(March
na¬
evidence of adjustment associated
with progress towards a more efficient peace-de¬
fense economy; but healthy growth so apparent on
all sides is adequate assurance that it may be held
to minor proportions."—John Hancock Mutual Life
Insurance Company.
$20,000,000
and
purposes
its
for
devoted to providing
Halsey,
associates
security. Americans may not only take pride
a
record; from it they may also derive
currently
Present plans
stitutional
the line in¬
would' find
company
Halsey, Stuart Group ;
Offer Equip. Trust Glfs.
any
abundant confidence in the future. To be sure,
$40.25
incurred
loans
bank
ance
tion
by the
approximately
struction
that somewhere along
That appeared to be the case
value)
par
Proceeds from sale of the stock
will
repay
sections
both
having
($25
share.
per
stock.
such
in
California Edison Co. common
ern
surpassed
tional
public 600,000 shares of South¬
on
artificial stimulus "
inflation, additions to productive capacity and
share of total output was
offered to
March 2
&
the
syndicates and dealers.
But
Co.
group
ter
rates, served to clear recent back¬
ward issues from the shelves of
market
nationwide
Without
abrqad.
revenues
nancing, outstanding capitalization,
of
the company will
consist ot
$115,000,000
of long-term debt;
97,397 shares of $4 preferred stock
and 5,281,790
shares of common,
previous level. Production for
everyday consumption and the living standards of
our people were the highest ever attained by any
nation in the world's history. Moreover, a large
rated
A
for
1953
had
of $53,128,376^
and
net
income
of
$10,311,738:
Giving effect to the current fi¬
company
operating
community capital in the form of new construc¬
to
Southern California
Double A
a
enemies
and
particularly in
the eastern areas.
something
passed
when
milestone
a
the
side that State and
racing schooner through the past
several
months.
And this week
The
plant and equipment had been produced,
being produced, that should prove adequate
only to sustain an expanded defense effort, if
necessary, but also rising standards of living. The
achievements of our national economy during 1953
were such as to confound alike, pessimists at home
satisfied, thus giv¬
be
suggested that
not
demand
California
cumstances,
•
tory served is estimated at 1,225,-
or were
specified that, in the cir¬
was
call
new
industrial
negotiated deal.
It
cities, villages and com-Population of the terri¬
"jmunities.
000.
require¬
the
6f
SAN
Chronicle)
FRANCISCO,
Calif.
—
Shirley H. Baker has become as¬
sociated with Ipving Lundborg
Co.,
of
Sansome
310
bers
Street, mem¬
Francisco
Baker was
San.
Mrpartner
New York and
Stock Exchanges.
the
in the past a
in Heller, Bruce
& Co.
62
(1038)
The Commercial and Financial
Chronicle
Securities
Now
it Aircraft Brake Co., Carson City, Nev.
Feb. 25 (letter of notification) 17,257 shares of
Co., Los
1,
To
be
Feb.
Salomon
stock
—L.
641
—
Electronic
an
par)
Arch
and
and
St.,
(par
$1).
Price—$3
in commodity
share.
per
futures
and
for
construction.
new
by
Underwriter
competitive
bidding.
devices.
Under-
Price—At par.
March 5
Rand
Street,
Baltimore,
(William
L.
(Paine,
Staats
8
&
Co.)
Co.)
ing
H.
Rothchild
Webber,
&
tal.
(Mohawk
3%% series M bonds due May^l, 1988.' Under¬
writer—To be determined by
competitive bidding. Prob-
300,000
Bond
M
Co.)
10
and
Security
(The First
Boston
&
&
*
Webber,
Jackson &
>
shares
&
Lunt)
and
principal
share.
Boston
&
Eeane;
William
Baltimore
&
i
Ohio
(Bids
of
Co.
Products
Lynch,
Baird
Offering
Alabama
Power
Co.)
&
.
11
(Van
(Bids
Alstyne,
Co.,
16
EST)
First
Public
National
11
Gas
a.m.
First
6
Co.
EST)
Bonds
EST)
$11,000,000
&
(Tellier
shares
Hammill
&
Co.)
'
...Common
Corp.)
250,030
shares
Bonds
a.m.
ESTl
11
a.m.
(EST)
$20,000,000
Preferred
11
$5,000,000
(Tuesday)
a.m.
New
Jersey
to
Preferred
$7,000,000
$12,000,000
(Wednesday)
be
Inc
invited)
Debentures
$50,030,000
May 4 (Tuesday)
Telephone Co.
Bell
be
to
May
invited)
14
(Offering
Utah
Power
to
(Friday)
stockholders)
noon
EDT)
Common
$150,000
May 19 (Wednesday)
& Light Co
(Bids
iBonds
$25,000,000
First Nat'l Bank of Toms River, N. J
$6,000,000
Common
EST)
Bonds
System,
(Bids
(Bids
17,526 shares
Bonds
(Wednesday)
11
April 21
shares
Common
(Offering to stockholders—underwritten by The First
Co
received)
Co
Gas
(Friday)
(Offering to minority stockholders)
be
(Bids to be invited)
Preferred
National Union Fire Insurance Co
Gas
'
$1,250,000
15,000
Co
$8,000,000
West Penn Power Co
Columbia
1
Electric
invited)
April 20
,
$270,000
Co.)
be
$15,000,000
(Tuesday)
&
Common
to
(Bids
....Debentures
&
13
Gas
to
shares
Debentures
EST)
a.m.
Arkansas Power & Light Co
(Thursday)
Co.)
5.000
Ohio Power Co
Common
200,000
underwriting)
Co
11
(Bids
Corp
Inc.)
March 19
Pennsylvania
Gas
(Bids
$3,601,250
of California
Boston
Power
Preferred
Co.
&
Ohio
$12,000,000
Corp).
(Monday)
Common
Indiana
$5,000,000
Co.
Bonston
Read
(Shearson,
Fuel
(Bids
Bonds
about
12
stockholders—no
April 14
Co.
EST)
Bonds
$3,000,000
Texas Utilities Co
Common
Inc.)
Common
$1,500,000
(Tuesday)
a.m.
(April
Southern
Nauman, McFawn & Co.)
Co.,
Transmission
Douglas Oil Co.
to
(Wednesday)
Electric
Drexel
shares
(Monday)
Co.)
a.m.
11
(Bids
$6,500,000
Light Metals Refining Corp..
&
by
Co
(Bids
Gordon
-.^.Common
underwritten
Corp.)' 705,000
Service
11
$17,000,000
EST)
and
17
Bonds
$17,000,000
Boston
&
April
Preferred
Co.
Common
EST)
a.m.
shares
$8,000,000
Gulf Insurance Co
Bonds
(Shearson, Hammill
The
Power
$2,000,000
„
offices
and
(Bids
(Tuesday)
1
all
Georgia
$299,000
Douglas Oil Co. of California
to
Co
EST)
a.m.
April
$65,000,000
Inc.)
March 18
Alaska Telephone Corp.
Private Wires
11
(Bids
(Offering
a.m.
&
March
(Dillon,
Chicago
Light
11
487,248
(Monday)
to stockholders—may.be
Community
Bonds & Preferred
11
Noel
(The
Cleveland
&
(Israel
shares
Goebel Brewing Co
Texas
Pittsburgh
underwriting)
North American uranium & Oil
Corp
.Bonds
a.m.
Stromberg-Carlson
San Francisco
Co.
Pierce,
Inc.;
Co...
(Bids
(Bids
Boston
Co.,
316,867
El Paso Electric Co
Pennsylvania
Philadelphia
&
Common
March
(Philip
New York
Power
(Monday)
invited)
&
Common
shares
(Friday)
stockholders—no
April 5
Corp.
(Teden
the
Office—San
be
114,166
*
Common
Merrill
&
Electric Co
April 1 (Thursday)
Pannsylvania Power & Light Co.
.
I
RR
to
to
$4,000,000
Robert W.
Blair
(Thursday)
&
Debentures
Co.)
Corp.;
EST) $1,240,000
Spa-King Mount Clemens Water
Proceeds—For
Feb. 5 filed 300,000 shares of
common stock
(par $5).
Price—To be supplied
by amendment. Proceeds—From
sale of
stock, together with net proceeds to be
received
from private sale of
$4,200,000 first mortgage bonds and
$1,500,000 4%% debentures, to be used
primarily to
purchase from California Electric Power
Co. all
Telegraph
&
Common
75,000 shares
Equip. Trust Ctfs.
noon
March 26
(Bids
i
(Friday)
March 15
of
racing plant.
Under¬
writer—Dixon Bretscher Noonan
Inc., Springfield, 111.
California Interstate
Telephone Co. (3/9)
Interstate
Fenner
Price—At
Cahokia Downs, Inc., East St.
Louis, III.
Feb. 15 filed $1,400,000 of
10-year 6% first mortgage
bonds due Jan. 1,
1964, and 140,000 shares of common
stock (par $1).
Price—Of bonds,, at 100% of
of
(Reynolds
Co.)
March 30 (Tuesday)
San Diego Gas & Electric Co
~^
;
Wisconsin Public Service
Corp
First
&
Barney & Co.)
(Bids
Debentures
by Paine,
"
Armstrong Rubber Co.____
(The
$10,000,000
Common
Pacific
Common
March 12
Cook
March 29
$300,000
Hamlin
Preferred
$7,000,000
EST)
a.m.
:
-
$3,300,000
Underwriter—None.
T
<
Common
and
Co
EST)
Debentures
11
Indiana Gas
Blyth & Co., Inc.; and
Curtis
(Wednesday)
a.m.
Co.
(Offering
*
Sheraton Corp. of America
(Offering to stockholders—underwritten
11
shares
Co
(Smith,
Commdn
Inc.)
24
Light
(Bids
*
shares
Co.,
&
Common
200,000
Mountain States Telephone &
Telegraph
Reynolds Uranium Corp
&
$1,300,000
Texas & Pacific Ry
*
605,000
Debentures
Co.)
ESTl
a.m.
March 25
$50,000
Co.)
&
•
(Wednesday)
Corp.;
Witter
Dean
11
(Newhard,
!
Southern
Inc.
Preferred
$7,000,000
Corp
Walker
(Bids
..Common
Co.,
Co
EST)
Mallinckrodt Chemical Works
Commjon
$300,000
noon
Light Co
Power
Bonds
Co.)
H.
&
Laclede Gas
$10,000,000
Fireman's Fund Insurance Co
Pro¬
Power
(Tuesday)
Light
Acceptance
(Bids
Byllesby & Co., Inc. and Hayden, Stone & Co.)
Blatt
Ltd., New York
100,000 shares of capital stock.
Proceeds—For investment.
&
March
shares
175,000
—
Power
(G.
shares
&
Valley Investing
March
(H.
share.
Louisiana
Debentures
,,
—
common
Office
Feb. 26 filed
stock
V
redeem
—
capital
Underwriter—None.
Detroit Edison Co.
w"
^
Feb. 24 filed $40,000,000 of
general and refunding mort¬
gage bonds, series N, due March 15; 1984. Proceeds—To
Common
Curtis; Stone & Webster
and Mitchum, Tully & Co.)
(Luakhurst
per
five
the current fiscal year and 4he remainder
general corporate purposes and working capi¬
for
Dallas
Corp...
Jackson
300,000
Underwriter—Hunter Securities
$1.50
each
within
used
$37,500
Federal Electric Products Co
operation
for
March 10.' Price—$10 per share. Proceeds
approximately $8,500,000 indebtedness matur¬
pay
(Bids
Co
PST)
a.m.
Securities Corp.;
notification) 77,624 shares of capital
(par $1) to be offered for
subscription by stock¬
holders of record on or about March
4.
Price
$3.75
per share.
Proceeds—For working capital and
general
corporate purposes.
Office—727 West Seventh
Street,
and
shares
new
oversubscription privilege); rights
an
to expire on
—To
Utah
Matheson Co., Inc
stock
amount; and of stock,
March 24.
on
basis of4wo
(with
Merchants
Commodity Golding Corp
Bolsa Chica Oil
Corp.
Feb. 16 (letter of
construction
the
on
March 23
Telephone Co
•
market.
15
Common
R.
(Bids
Corp., Santa Fe, N. M.
per
• Bullock Fund,
(EST)
a.m.
Corp., Dallas, Tex.
Jan|. 22 filed 1,031,758 shares of common stock (par $1)
being offered for subscription by stockholders of record
$300,000
&
California Oregon Power
common
Underwriter
ceeds—To acquire properties and leases.
«■3yOs Angeles, Calif.
11
Delhi Oil
(Tuesday)
Morgan
General Telephone
Dec. 23 (letter of
notification) 748,000 shares of
Utock (par five cents). Price—40 cents
Bldg., Santa Fe, N. M.
Corp., New York.
received up to
$2,000,000
Devices, Inc
(Peter
"
Natural Gas
determined
by competitive bidding.
Union
Securities
Corp.; The Firs*
Corp.; White, Weld & Co.; Lenman Brotners;
Blyth & Co.,' Inc.; Harriman Ripley & Co. Inc. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
.Common
California Interstate
Baltimore,
Md.
Co.)
Co.)
March 9
Audio
Md.
Feb. 19 (letter of
notification) $200,000 of 6% debentures
to mature
serially, $50,000 beginning in 1964. Price—
At par (in denominations of
$100 each). Proceeds—For
construction of new plant in
Federalsburg, Md.
Office
None.
deter¬
bidders:
be
bidders:
Boston
(Monday)
(Tellier &
writer—Peter Morgan &
Co., New York.
Co.,
To
—
Probable
Common
&
Nuclear Research Co
market (about $3.75
selling stockholder. Under¬
Grain
Reid
March 8
Office—515
Underwriter—None.
Price—At
&
-
derwriter
(Bids
Proceeds
building.
it Audio Devices, Inc., N. Y. (3/9)
Feb. 19 (letter of
notification) 10,000 shares of
To
be
on
(Friday)
Development Corp
(Fulton,
Underwriter—Reynolds & Co., New York.
—
(EST
& Co. Inc.; Equitable Securities
Corp.;
Co., Inc. Bids—To be leceivect up to 11 a.m.
April 6 at 90 Broad Street, New York, N. Y.
NEW ISSUE CALENDAR
Rubber Co.
(3/12)
March 31, 1953, filed $4,000,000 of
5V2% convertible sub¬
ordinated debentures due 1974 (as
amended). Price—To
be supplied by amendment. Proceeds—For
working cap¬
(par 10 cents).
per share).
Proceeds
To
—
Probable
.
it Dallas Power & Light Co. (3/24)
Feb.
25
filed
70,000 shares of cumulative preferred
stock (no par).
Proceeds—For new construction.
Un¬
Feb.
-
REVISED
Stuart
&
shares toeld
Proceeds—
ITEMS
'
ISSUE
stock
Armstrong
stock
\
or
i
Coopdr Building, Denver, Colo.
Pried—At
commodities.
Office
Exchange Place, Jersey City, N. Y.
Underwriter
Rothchild & Co., New York.
mined
preferred
'
PREVIOUS
Philadelphia, Pa.
electrical
to members of the Association.
Basin
(jointly);
H.
undisclosed number of
—To finance construction of office
Boston
Hutzler
it Community Public Service Co. (4/6)
1 filed $3,000,000 of first
mortgage bonds, series
D, due March 1, 1984. Proceeds—To
repay bank loans
it American National Cattlemen's Association
1
Feb. 25
(letter of notification) $150,000 of 3% nonnegotiable 10-year promissory notes to be offered
only
—2341
&
March
Underwriter—Tellier
yriter—None.
it Baltimore Feed
new
Holding Corp. (3/9)
(letter of notification) 400,000 shares of'com
25
—15
it American Electronic Laboratories, Inc.
Feb. 26 (letter of notification)
shares of class A stock (no
ital.
Bros.
250,000 shares of capital stock.
Proceeds—For investment.
mon
Proceeds—For general operat¬
ing expenses and working capital.
Co., New York.
•
and
filed
Feb.
&
—
for
* Commodity
Telephone Corp., Seattle, Wash. (3/18)
(letter of notification) $270,000 face amount of
10-year convertible debentures, series B.
Price—
Business
26
market.
10
70% of principal amount.
/
Corp.
To trade
Office
and
it Canadian Fupd, Inc., New York
Alaska
$10).
loans
—
Street, New
(par
bank
repay
& Co., Merrill Lynch,
Pierce, Fenner & Beane
Kidder, Peabody & Co. (jointly). • Bids
Td be
received up to 8 a.m. (PST) on March 9 at
American
Trust Co., 464 California
St., San Francisco, Calif, j
York 5, N. Y.
6%
Proceeds—To
and
First Boston Corp.; Harriman Ripley &
Co., Inc. Bids—
To be received up to 11 a.m.
(EST) on March 16 at the
office of Southern Services,
Inc., 20 Pine
•
Halsey,
Blyth
Shields
Underwriters—
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.
Inc.; Union Securities
Corp., Equitable Securities Corp. and Drexel & Co.
(jointly); Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly); Morgan Stanley & Co.; Lehman Brothers; The
Feb.
1984.
ton
determined
1984.
Proceeds—For
improvements and to repay bank loans.
&
Underwriter—To be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &
Co., Inc.; White & Co.; Blyth & Co., Inc., The First Bos¬
mortgage bonds due
property additions and
1,
Staats
petitive
(3/16)
$17,000,000 of first
March
R.
construction.
Alabama Power Co.
filed
William
—
Calif.
Power Co. (3/9)
Feb. 10 filed $10,000,000 first
mortgage bonds due March
working capital. Office—42 Spear
Street, Carson City, Nev.
Name of company to be
changed to Catton Disc Brake Co. Underwriter—None.
17
Underwriter
Angeles,
ADDITIONS
SINCE
•
California Oregon
ment of notes and for
Feb.
Registration
Bernardino, Calif.
common
(par $1). Price—$3.50 per share. Proceeds—For
experimental engineering, operating expenses, retire¬
Thursday, March 4, 1954
.
* INDICATES
in
stock
.
.
$15,000,000
Bonds
Number 5304
Volume 179
The Commercial and Financial Chronicle
..
.
able-bidder^:JEJalseyy:Stuart & Co. Inc.; The First Boston
Corp.; Coffin & Burr, Inc. and Spencer, Trask & Co.
fMriririrffitriifciPlm riP'Tri»
ftfirri ~ifirft
I
S^HN^JT
'
Feb. 25 filed 1,000,000 shared of
their
loans
*bank
for
and
- -
.
Douglas Oil Co. of California (3/18)
23 filed 15,000 shares of common stock
related
oh the American Stock
rbw
G.
price
Exchange.' Proceeds—To Wood-
Underwriter — Shearson,
Angeles and New York.
President.
Krieger,
Hammili & Co., Los
+ Duggan's Distillers Products Corp.
19 (letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents) to be offered to stockholders.
Price—25 cents per share.
Proceeds—For general cor¬
porate purposes.
Office—248 McWhorter St., Newark
5-, N. J.
Underwriter—None.
Feb.
it Eaton & Howard Stock Fund, Boston, Mass.
Feb. 25 filed 300,000 shares of capital stock.
Price
At market.
•
capital
working
Office—19101
and
Boulevard,
Newport
to business
incident
expenses
of
fcb^g,laSAS^r0oUon?'
Santa Ana, Calif.
—
Electric Co.
by
of record Feb. 23
the basis of
on
stock (no par) be¬
stockholders
common
one
new
share for each
Rights will expire on March 11.
Price
share.
Proceeds—From sale of common stock,
per
and
$5,000,000 of first mortgage bonds due 1984, to be
used to
repay
bask loans and for new construction.
Dealer Manager
Stone & Webster Securities Corp.,
New York.
El
" "
Electric Co.
Paso
Feb. -19
March
filed
(3/16)
construction program.
Underwriter —• To be 'determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.;
Hutzler;
Equitable Securities Corp.; Salomon Bros. &
Kidder.
Peabody & Co., White, Weld & Co.
and Shields & Co. (jointly); Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane. Bids—
To be received up to 11 a.m. (EST) on March 16 at 90
Broad Street, New York City.
El
Electric Co.
Paso
¥%
T7*
r.
be
s-L.
"»
Container
Growers
Corp., Salinas, Calif.
1,450,000 shares of common stock, to be
primarily to individuals and firms in the Salinas
Valley, Imperial Valley, Yuma, Phoenix, and other dis¬
tricts in and outside of San Francisco and Arizona, who
Feb.
15
filed
engaged
in
or
allied to the
determined
by
competitive
bidding.
Ml
Israel
/State of)
t
Fefcp 24 filed $350,000,000 of development bonds to be
offeredrinlwo
bonds and
viz:
types,
dollar coupon
(capital appreciation)
15-year 4%
10-year dollar savings
bonds.
Price—100% of principal amount. Proceeds—For
investment in The- .State of Israel for agriculture, indus¬
communication, and
low cost housing; and for general reserve. Underwriter
—American Financial & Development Corp. for1 Israel,
New York.
Jupiter Steamship Co., Wilmington, Del.
16 (letter of notification) 20,000 shares of common
(no par) to be initially offered to stockholders.
Price—$10 per share. Proceeds—To pay balance due on
Feb.
Probable
bid¬
ders:
Kidder, Peabody & Co., White/Weld & Co. and
Shields & Co.
(jointly); Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Beane. Bids—
4*0 be received up to 11 a.m. (EST) on March 16 at 90
Broad
Street, New York City.
if Elk-Pine Petroleum Co., Inc.
Feb. 23 (letter of notification) 142,500 shares of com¬
mon
stock.
Price—At par ($1 per share). Proceeds—
to develop leases now held.
Office—Watrous, Pa.
Un¬
derwriter—None.
•
Federal Electric Products Co.
17
Feb.
filed
(3/10)
stock (par $1).
supplied by amendment.
Proceeds—To
reduce short-term bank loans incurred to provide work¬
Price—To
175,000 shares of
common
ships
10th
Street, Wilmington, Del.
and
working
for
Office—100 West
capital.
two
Office—Newark, N. J. Underwriters—H. M.
Byllesby & Co. (Inc.), Chicago, 111., and Hayden, Stone
& Co., New York.
:
Fidelity Acceptance Corp., Minneapolis, Minn.
Jan. 26
lative
share).
(letter of notification) 2,800 shares of 6% cumu¬
preferred stock, class E. Price—At par ($25 per
Proceeds—To be available to subsidiaries and
reduce
outstanding
Bldg., Minneapolis,
&
Minneapolis,
Co.,
bank loans. Office—820 Plymouth
Minn. Underwriters—M. H. Bishop
Minn.; and B. I. Barnes, Boulder,
Colo.
:
Financial Credit Corp., New York
29 filed 250,000 shares of 7% cumulative
Jan.
fund
sinking
tain
working
& Co., Inc.,
filed
16
605,000
working capital.
New
Witter
York,
shares
of
(3/10)
(Pa.)
&
Blyth
both of San
Co.,
York, N. Y.
(par
—
The
First
Boston
&
Co., Inc. and Dean
Francisco, Calif., and New
Corp., Wilmington, Del.
140,000 shares of common
Price—$1.50 per share. Proceeds—
inventory, capital expenditures and working capi¬
(letter of notification)
stock (par 10 cents).
For
Office—100 West 10th Street, Wilmington, Del.
derwriter—Sheehan & Co., Boston, Mass.
tal.
Un¬
^General Guaranty Insurance Co.,
Winter
Feb. 26
stock
$20
plus.
Park,
Fla.
$10)
(par
12,000 shares of
to be offered to
stockholders.
common
Price—
share. Proceeds—To increase capi'al and sur¬
Office—130 Park Avenue, North, Winter Park, Fla.
per
Underwriter—None.
General Telephone
Feb.
construction
17
Corp., N. Y.
(3/9)
filed 300,000 shares of common stock
Price—To
be
investments
in
supplied
by
additional
amendment.
stock
n
v»
W f \ t\ £% 4%
n V* A
Underwriter—To
be determined
by
Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers; The First Boston Corp.;
Blair, Rollins & Co. Inc.; Stone & Webster Securities
Corp. Bids—Tentatively scheduled to be received up to
11 a.m. (EST) on March 24.
bidding.
(3/17)
stock (par $1).
Light Metals Refining Corp., New York
15 filed
Feb.
1,250,000 shares of common
share.
Proceeds — For construction and
equipment of control plant, and main plant, working
capital, advance royalties and reserves.
Business — To
refine beryllium ore and market the products.
Under¬
writer—Philip Gordon & Co., Inc., New York.
Price
—
$4
per
Los
Angeles Drug Co.
filed $178,000 of 15-year 5% sinking fund de¬
bentures, due Oct. 1, 1966, and 50,000 shares of capital
stock (no parlatter to be first offered for sub¬
scription fey stockholders. Price—For debentures, at par;
and for stock, $10 per share. Proceeds—To finance expandM^Jnareiaandise^anventory and operating equip¬
ments/new building), and for working capital. Under¬
Jan.
28
writer—None..^>--
~
Louisiana Power & Light Co.
(par $20).
equities of subsidiaries
Orlean, N. Y.
2,800 shares of common
Price—At par
($100 per share). Proceeds—To
purchase drill rig, etc. Office — 10 East Corydon St.,
Bradford, Pa.
Underwriter — Winner & Myers, Lock
Haven, Pa.
9
(letter of notification)
if Merchants Acceptance Corp., N. Y. (3/23)
i
$1,300,000 12-year sinking fund subordina'ted debentures due March 1, 1966. Price—100% of principal amount. Proceeds—To pay $306,000 of outstanding
March 1 filed
.
subordinated debt and for other corporate purposes. Un¬
derwriter—G. H. Walker &
Co., New York.
Merritt-Chapman & Scott Corp., New York
if
Dec. 31 filed 513,594 shares of common stock (par $12.50)
being offered in exchange for 1,078,546.25 shares of
authorized and issued common stock (par $1) of Newport
Steel
Corp.
stock for
expire
at
each
of
rate
one
shares
2.1
of
share
of Newport
Merritt-Chapman
Offer will
stock.
Underwriter—None.
March 27.
on
4
Mississippi Chemical Corp., Yazoo City, Miss.
Jan. 5 filed 26,666 shares of special common stock (par
$75—limited dividend) and $1,500,000 of certificates of
participation (to be sold in multiples of $75—5% inter¬
est). Proceeds—From sale of these securities, together
with bank borrowings, are to be used for expansion of
facilities.
Underwriter—None.
company
•
Public
Sales will be handled by
Offering—Expected during March.
employees.
Missouri
Service
Co.
share-for-share basis
be
—To
supplied
with other
Co.
by
(with a 13-day standby). Price
amendment. Proceeds—Together
funds, to acquire capital stock of Gas Service
Underwriter—
On Feb. 25, the
(a subsidiary of Cities Service Co.).
Co., New York.
Kidder, Peabody &
sale of Gas Service Co.
was
called off by Cities Service"'
Proceeds—For
bidders:
Co.
The
and
Brothers;
Blyth &
First
Kuhn,
construction program.
determined
be
Probable
Loeb
&
Un¬
b,y competitive bidding.
Co., Inc.; W. C. Langley &
Corp.
(jointly); Lehman
Boston
Co.;
Union
Securities Corp.;
Pierce, Fenner & Beane (jointly).
—Expected to be received up to noon
(EST) on
Bids
March
1
1954.
if Magnetics, Inc.
notification) 250,000 shares of common
Price—At par ($1 per share).
Proceeds—To pay
Feb. 19 (letter of
stock.
Inc.
(letter of notification) 72,500 shares of capital
(par $1).
Price — $4 per share.
Proceeds — To
11
stock
acquire flight equipment and for working capital. Office
University Airport, Ithaca, N. Y. Underwriter
—Cornell
—None.
-
Monterey Oil Co., Los Angeles, Calif.
2 filed 257,338 shares of common stock (par $1).
then prevailing on the New
Feb.
Price—At the market price
York
Stock
Exchange,
secondary distributions.
through special offerings or
Proceeds—To Lehman Borthers
or
(400 shares); partners of Lehman Brothers and members
(150,458); and The Lehman...
of their immediate families
(106,480).
Corp.
Underwriter—None.
No general offer
planned.
if National Union Fire Insurance Co. (3/19)
26 filed 200,000 shares of capital stock (par $5) to
be offered for subscription by stockholders of record
March 19 on the basis of one new share for each two
Feb.
shares
share.
held; rights to expire on April 19. Price—$30 per
Proceeds—To be added initially to the company's
funds to be invested in securities which are
qualified as legal investments. Underwriter—The First
Boston Corp., New York.
general
New Bristol
Oils, Ltd., Toronto, Ont., Canada
1,000,000 shares of common stock (par $1).
Price—To be related to the bid price of the shares on
Dec.
18 filed
the Toronto
commission.
Stock Exchange, with a
20% underwriting
Proceeds—For general corporate purposes.
.
Equitable Securities Corp.; Kidder, Peabody & Co. and
Merrill Lynch,
Mohawk Airlines,
Feb.
(3/23)
70,000 shares of cumulative preferred stock
Business
Produces magnetic
amplifiers, magnetometers and
tape wound cores for use in electrical and electronics
equipment.
Office—10th St. and Railroad Ave., East
part of cost of plant and equipment facilities.-
Underwriter—To be named by amendment.
-
England Gas & Electric Association
shares of beneficial interest
New
Dec. 10 filed 32,126 common
(par $8)
being offered in exchange for common stock
Light Co. held by minor¬
of New Bedford Gas & Edison
ity stockholders on the basis of 4% New England shares
for each New Bedford share held. The offer will expire
on
April 24.
New York.
Financial Advisor—The First Boston Corp.,
.
'
*
.
—
Underwriter—None.
*
Magnolia Park, Inc.
29
filed
(par 10 cents) to be offered in units of $100 of deben¬
tures and 10 shares of stock. Price—$101 per unit. Pro¬
construction
ojff racing plant and for ex¬
incident to racing activities. Underwriters—GearOtis, Inc. and Hunter Securities Corp., both of
New York; and T. J. Feibleman & Co., New Orleans, La.
penses
hart
&
Inc.
Feb. 23 (letter of notification) 2,400 shares of common
stock (par $1). Price—$20.25 per share. Proceeds—To a
selling stockholder. Underwriter — Silberberg & Co.,
if New Yorker Magazine,
New York.
$2,500,000 of 6% subordinated convertible
debentures due 1969 and 250,000 shares of common stock
Jan.
ceeds—For
Proceeds—For
capital.
Corp., Houston,
working
Medina Oil Corp.,
a
W
-Lr*
Office—21 North Duke St., Lancaster,
costs.
competitive
Butler, Pa.
(letter of notification)
for
and
Securities
Company.
23,
Gamma
Feb. 2
w
_
Underwriter—None.
derwriters—To
stock
common
Underwriters
and
__
(par $100).
Price—To be supplied by amendment. Proceeds
finance acquisition of National Surety Corp. and
Corp.,
■ M
if Laclede Gas Co., St. Louis, Mo. (3/24)
Feb. 26 filed $10,000,000 sinking fund debentures due
1974.
Proceeds—For repayment of bank loans and for
-
$2.50).
—To
••
properties,
Continental
527,865 shares of common stock (no par) to
be offered for subscription by common stockholders on
Feb. 25 filed
New York.
Fireman's Fund Insurance Co.
Feb.
for
Pa.
J. Foun¬
Underwriter—E:
capital.
.
mining properties.
preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For
I.
to
—
Jan. 14 filed
Underwriter—None.
shares of class A
\
4*1 C*
share).t Proceeds
—To ptlt-dh'Sse land and erect buildings, to. purchase
mineral rights and leases and to develop and exploit
be
ing capital.
additions
and
stock
***>», ■ l I ■ •
»"•
Corp;, San Antonio, Tex.
•
Underwriter—None.
Keystone Mining Corp.
n4«.. f
msm.
-mym
Inc.,
Utica, N. Y., and Security & Bond Co., Lexington, Ky.
Dec.
(3/16)
filed
19
««
1, 1964. Price—100% and accrued interest. Proceeds—
To construct plant in
Norwood, O., and for working capi¬
tal.
Underwriters—Mohawk Valley Investing Co.,
stock.
15,000 shares of preferred stock (no par)*'Feb.'40 (letter of notification) 291,300
4* 4
T" T
*3
^
m
'
■'
JUdP-mJi'
"I
'•
—-9
A 4/ d' 1
commdi? sfockf. Price—At par ($1 per
Proceeds—For construction program. Underwriter—To
Feb.
$50,000 of 10-year 6%
1, 1954 and due Jan.
dated Jan.
York, and Nauman, McFawn & Co., Detroit, Mich.
try and power, transportation and
$5,000,000 of first mortgage bonds due
Proceeds^To repay bank loans and for
1984.
1,
convertible debentures
Texas.
together with proceeds from subsequent sale at competi¬
tive bidding of 15,000 shares of preferred stock (no par)
Inc. (3/9)
(letter of notification)
19
held; rights to expire on .March 31. Price—To be supplied
by amendment. Proceeds—For expansion and working
capital.
Underwriters—Van Alstyne, Noel & Co., New
bles.
common
subscription
Matheson Co.,
Feb.
Underwriter
•—$28
for
Co., St. Louis, Mo.
•
McBride Oil & Gas
10 shares held.
offered
&
preferred stock for each seven shares of common stock
are
Fjeb. 4 filed 76,399 shares of
75,000 shares of class A common stock
Price—To be supplied by amendment. Pro¬
expansion.
Underwriter—Newhard, Cook
ceeds—For
Jan, 26 filed 2,000,000 shares of common stock (par 10 '
cents). Price—To be supplied by amendment. Proceeds
To; repay notes, for exploration and drilling expenses
Goebel Brewing
growing and shipping
industry. Price—At par ($1 per share). Proceeds—Con¬
struction of plants, acquisition of equipment, and for
working capital.
Business—Primarily manufacture of
cartons and bags used for shipment of various vegeta¬
ing
filed
1
$10).
par
Co. (3/16)
Feb. 24 filed 200,000 shares of 60-cent convertible pre-,
ferred stock (par $10) to be offered to common stock¬
holders of record March 12 on the basis of one share of
•
offered
Proceeds—For investment.
El Paso
Glasspar Co., Santa Ana, Calif.
Feb. 17 (letter of notification) 250,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds—For
(3/24)
March
Calif.'
(par $1).
then current market
the
to
Underwriters—Paine, Web-
63
it Mallinckrodt Chemical Works, St. Louis, Mo.
with the
Underwriter—Marache, Dofflemyre & Co., Los Angeles,
Feb.
be
connection
in
use
-San^rancisco, Calif.
expansion and
Hammilt & •-
working capital.
Underwriter—Shearson,
Co., Los Angeles and New York.
Price—To
for
Price—AtTi£1!^f5^i>0^ °* /?*?•?*ork» an<* Mitchum, Tully & Co.,
capital stock.
'
-
Douglas Oil Co. of California (3/18) 1
23 filed 50,000 shares of cumulative convertible
preferred stock. Price —At par ($25 per share). Pro¬
repay
and
loans
ber, Jackson & Curtis and Stone & Webster Securities
Feb.
ceeds—To
bank
1954 construction program.
;r.i
Proceeds—For investment.
market.
and temporary advances to subsidiaries for reduction of
*
r
'
(1039)
if North American Uranium & Oil Corp., N. Y. (4/5)
1 filed 750,000 shares of common stock (par 10
March
cents).
tain
New
Proceeds—For capital ex¬
including payment of balance due on cer¬
and properties. Underwriter—Israel & Co.,
Price—$2 per share.
penditures,
claims
York.
/*
w
m
4 /-»
if
/)
r4
.
"
>'•
M
Continued from page
-4
(par
shares of
com¬
one
$8,000,000 first mortgage bonds due
filed
25
1984.
bank
.Proceeds—For construction program and to repay
Underwriters—To be determined
loans.
by competitive
Halsey, Stuart & Co. Inc.;
Probable bidders:
bidding.
Kuhn, Loeb & Co.; Blyth & Co., Inc. and White, Weld
& Co. (jointly); Kidder, Peabody & Co.; Union Secu¬
Co., Lehman Brothers and
(jointly). Bids—Expected to
rities Corp.; Bear Stearns &
be received
Hutzler
&
Bros,
-Salomon
(EST) March 29.
to 11 a.m.
up
Parkmaster
Systems,
working capital and expenses incident to business of
parking of autos.
Office—602 Spokane &
Eastern Building, Spokane, Wash. Underwriter—Walter
J. Nicolls & Co., Spokane, Wash.
For
mechanical
Cement
"Feb. 4 filed
26
Feb.
shares
Corp.,
York
New
120,427 shares of capital stock (par $7) be¬
by stockholders of record
for subscription
ing offered
basis
the
on
of
one
new
share
for
five
each
rights to expire on March 15.
Price—
$35.50 per share.
Proceeds—To repay bank loans and
lor expansion program.
Underwriter — Merrill Lynch,
held;
V>)Fierce, Fenner & Beane, New York.
Pennsylvania Electric Co.
Feb.
18
(3/17)
filed
$12,000,000 of first mortgage bonds due
March 1, 1984. Proceeds—To repay bank loans and for
new
construction.
Underwriter—To be determined by
Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities Corp.; Kidder Peabody
& Co., Merrill Lynch, Pierce, Fenner & Beane, Union
Securities Corp. and White Weld & Co. (jointly); Harcompetitive
bidding.
riman
Ripley & Co., Inc.; Kuhn, Loeb & Co., Lehman
Brothers, Drexel & Co. and Salomon Bros. & Hutzler
(jointly); The First Boston Corp.
Bids—Expected to be
received
March 17.
to
up
11
(EST)
a.m.
on
Philip Morris & Co., Ltd., Inc., New York
13 filed 443,561 shares of common stock (par $5)
being offered in exchange for common shares of Benson
& Hedges, on a share-for-share basis. Offer is subject to
acceptance by holders of not less than 355,460 shares of
Jan.
less
extended.
on
March 1,
un¬
Underwriter—None.
26
market.
filed
26
if San Juan Horse Racing Association
(letter of notification) 50,000 shares of common
Price—At
Proceeds—For investment.
$2,000,000
of
track
and
Avenue,
in
Plastic Wire & Cable Corp., Jewett City, Conn.
Feb. 4 (letter of notification) 21,952 shares of common
stock (par $5) being offered for subscription by common
stockholders on the basis of one new share for each five
per
on
Feb.
share.
2; rights expire
on
March 12. Price
Proceeds—For working capital.
Un¬
derwriter— None, but Putnam & Co., Hartford, Conn.,
will manage a group to assist in obtaining subscriptions.
^Playhouse Inn, Inc., New Hope,i Pa.
Feb. 19 (letter of notification) $124,200 5% debentures
due May 1, 1974 and 4,140 shares of capital stock (par
$20) in units of $60 of debentures and two shares of
stock. Price
$100 per unit. Proceeds — To erect and
equip hotel and for working capital. Address—Benj. L.
Snyder, Treasurer, 2218 W. Ontario St., Philadelphia 40,
—
Pa.
I
Underwriter—None.
Rand
Development Corp., Cleveland, O.
12
cents).
Business—The
creation
and
development of new prod¬
ucts.
Company does not engage in basic research. Un¬
derwriter—Fulton, Reid & Co., Cleveland, O.
Reynolds Uranium Corp., N. Y. (3/10)
(letter of notification) 30,000 shares of common
(par $1). Price
$10 per share. Proceeds
For
mining operations. Office—27 William St., New
York,
N. Y. Underwriter—Luckhurst &
Co., Inc., Npw York,
r* Rocky Mountain Tungsten, Inc., Denver, Colo,
Feb. 23
stock
—
teb. 24 (letter of
stock
—-
notification) 100,000 shares of
(par 50 cents).
common
Proceeds—To erect concentration
plant and for mining operations.—Office—821
Building, Denver, Colo. Underwriter—None.
E.
if Rose, Kimball & Baxter, Inc., N. Y.
Feb. 23 (letter of
notification) 2,000 shares of 5%
&
C.
cumu¬
lative preferred stock., Price—At
par
($100-
proceeds—To reduce outstanding bank
loans. Business-^
per
share),
Wholesaler to retail hardware stores.
Office—511 BaldWin St;, Elmlra, N. Y. Underwriter—None.
per
Underwriter
Colo.
Durango,
—
--•
Denver, Colo.
(letter of notification) "29,910,000 shares of com¬
Feb. 16
stock, purchasers of the first 9,970,000 shares to be
the option to purchase two additional shares
purchased. Price—At par (one cent per
share).
Proceeds—For mining expenses.
Office—230
E. 19th Avenue, Denver, Colo. Underwriter—J. W. Hicks
mon
given
for each share
&
Co., Denver, Colo.
*
~
.
.
(
of Scurry Oils Ltd. stock on a share-for-share basis,
in exchange for the 534,320 shares of Rainbow Oil
on
basis of 3.8
a
and
Ltd.
Scurry-Rainbow stock
shares of
Underwriter—None.
for each Rainbow Oil share.
J
-
U. S. Airlines, Inc., New York
Feb. 12 (letter of notification) 19,000 shares of common
stock (par five cents).
Price—At market (estimated to
be about 10 cents par share)., Proceeds—To W. B. Hag-
Underwriter—Thomas & McKinnon,
gerty, Tampa, Fla.
New York.
Utah Power & Light Co. (3/23)
16 filed 200,000 shares of common
W.
Matthew
Scurry-Rainbow Oil Ltd., Calgary, Alta., Canada
Feb. 15 filed 4,700,416 shares of capital stock (par 50
cents) to be offered in exchange for the 2,670,000 shares
stock
Blair, Rollins & Co. Inc.,
—
Feb.
Thomas.
Proceeds—To
bank
loans
stock (no par).
for
and
construction
Underwriter—To be determined by competi¬
program.
tive
repay
bidding. Probable bidders: Blyth & Co., Inc.; Kidder,
& Co. and Merrill Lynch, Pierce, Fenner &
Peabody
Beane
(jointly); Lehman Brothers; The First Boston
Corp.; Union Securities Corp. and Smith, Barney & Co.
(jointly). Bids—Tentatively expected to be received up
to 11
•
Selected American
Feb.
11
Shares, Inc., Chicago, 111.
filed 150,000 shares of capital stock.
Price—At
market.
a.m.
(EST) on March 23, at Room 2033, Two Rector
St., New York, N. Y.
Utah Power & Light Co. (5/19)
16 filed $15,000,000 of first mortgage
Underwriter—None.
Proceeds—For investment.
it Shedd Bartush Foods, Inc., Detroit, Mich.
Feb. 23 (letter of notification) an unspecified number
of shares of common stock (par $1) to be offered in
Feb.
1984.
/
•
bonds
due
Proceeds—To repay bank loans and for nfew con¬
struction.
Underwriters—To
be
determined
by
com¬
petitive
Churngold stock (aggregate amount not to exceed
$50,000).
Office—14401 Dexter Boulevard, Detroit 6,
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; White, Weld & Co. and Stone & Webster Se¬
curities Corp.
(jointly); Union Securities Corp.. and
Smith, Barney & Co (jointly); Lehman Brothers and
Mich.
Bear,
exchange
for
share
one
Churngold
Shedd
of
Corp.
Bartush
stock
on
each
for
stock
the
basis
5J/2
of
shares
of
Underwriter—None.
•
Sheraton Corp. of America, Boston, Mass. (3/10)
Feb. 18 filed $3,273,800 of 6% debentures due April 1,
1979 (with warrants to purchase shares of common stock,
50 cents)
par
of
to
be offered
record
debentures
100 shares of
Principally
writers
about
for subscription
March
10
the
on
by stock¬
of $100
for each
mon
additional shares of
stock
penses and working capital.
Verona, N. J. Underwriter
Newark, N. J.
10
and
Office
—
Pro¬
development ex¬
251 Grove Ave.,
Daggett
—
com¬
Securities,
Inc.,
Mining Co., Wallace, Ida.
stock
(letter of notification) 1,083,556 shares of com¬
(par 10 cents). Price—12V2 cents per share.
develop Vidicatot claims. Address—P. O.
Wallace, Ida. Underwriter—To be filed by
1088,
amendment.
March
15, 1S64, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one $50 deben¬
Weld
—For working
capital, etc.
Long Island City 1, N. Y.
Inc., New York.
Office—34-24 Vernon Blvd.,
Underwriter—Teden
&
if Westinghouse
2
filed
certain
19
5,000
shares
the
for
of
5%
cumulative
Company and
each
(b)
23
preferred stock (par $10) of
shares of Corporation stock
of the
25,000 shares of $10
of the company. Underwriter—None.
City, Utah.
par
stock
common
Office—Salt Lake
Pa,
other
and
executive
Feb.
mon
company
each
offered
to
(3/12)
common
the
one
on
basis of
be
offered
first
(par $10)
stockholders
new
held; rights to expire
exceeding 10,000 shares of
share
stock.
and
to
Proceeds
amendment.
Lynch,
Robert
Pierce, Fenner & Beane, both of New
Baird & Co., Inc.,1 Milwaukee, Wis.;
W.
and William Blair &
Co., Chicago, 111.
•
Price—At par ($1 per share).
gas
operations.
shares of com¬
Proceeds—For
Underwriter—Clarence
Stromberg-Carlson Co.
24 filed 72,025 shares
Feb.
holders of record March 15
seven
shares
on
of
pay
March
20
cumulative
the basis of
convertible
common
one
held; rights to expire
Price—To be supplied by amendment.
on
new
stock¬
share
March 31.
Proceeds—To
$1,100,000 bank loans and for general corporate
poses.
re¬
pur¬
Underwriter—The First Boston Corp., New York.
if Texas
Co.,
New
York
Feb.
25
filed
$11,500,000 participations in company's
"Employees Savings Plan" and 178,295 shares of capital
stock (par $25) to be offered for subscription pursuant
thereto.
(3/17)
25 filed
200,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To two
selling stockholders. Underwriter—Dillon, Read & Co.,
Inc., New York.
.
•
*
Textron
1
it
was
announced
stockholders
will vote April
approving an increase in the authorized common
stock (par $2) from 1,000,000 to 2,000,000 shares. South¬
ern
Natural Gas Co., parent, owns about 99% of the
on
presently outstanding common stock. There are no plans
for immediate financing.
Underwriter—None.
if Allied
Artists Pictures Corp., Hollywood, Calif,
Broidy, President, announced .that stock¬
vote March 23 on approving an issue of
March 2, Steve
holders
will
in¬
Proceeds—To
expand company's production program and for work¬
ing capital.
Underwriter — Emanuel, Deetjen & Co.,
$10 par convertible preferred stock, of which it is
tended
to
issue
and
sell
150,000
shares.
New York.
if Texas Gas Transmission Corp.
Feb.
* j
if Alabama Gas Corp.
(3/17)
preferred stock (par $50) to be offered to
for each
'
Prospective Offerings
M.
Strom, 139 N. Virginia Street, Reno, Nev.
•
for
March 30.
unsubscribed
on
employees. Price—To be
— For
construction
Underwriters—The First Boston Corp. and
by
program.
Merrill
subscription by
12
shares
not
to.
supplied
York;
for
March
seven
shares
em¬
and six subsidiaries.
Oil
Exploration Corp.
(letter of notification) 300,000
18
of
said
employees
„
if Strom
,
filed 316,867 shares of common stock
Up
(a)
Pittsburgh,
Wisconsin Public Service Corp.
value
capital
officers
ployees of
record
outstanding
Corp.,
483,190
company and its subsidiaries; and 200,000 shares of
stock to be offered under employees' stock plan to
of
and
Electric
shares of common stock (par
$12.50) to be offered under restricted stock option plan
Strevell-Paterson Finance Corp.
1
19 filed 640,000 shares of common stock
(par 50
cents) to be offered in exchange for the $300,000 par
issued
supplied by
1,125,000
private sales of
and
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.
be
authorized,
and
Co. and Union Securities Corp., both of New
Offering—Postponed indefinitely.
to
of
common
West Coast Pipe Line Co., Dallas, Tex.
Feb.
stock of Strevell-Paterson Finance Co. on the basis
of 13 shares of Corporation stock for each of the
Price—To be
of stock.
Nov. 20, 1952 filed 1,125,000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro*
Co.,
Feb.
share
&
York.
to
1
one
$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters — White,
March
(letter of notification) 299,000 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds
mon
Pipe Line Co., Dallas, Tex.
filed $29,000,000 12-year 6% debentures
1952
sale of units
stock '(par 10 cents).
—
For expansion, research
mon
20,
amendment. Proceeds—From
200,000 shares-of
Price—$1.50 per share.
Silver Buckle
West Coast
Nov.
Under¬
loans.
bank
(letter of notification)
Feb.
up
Boston,
short-term
reduce
if Shield Chemical Corp.
ceeds
Hutzler.
&
received
ture and
—
1
Bros.
Bids—Tentatively .expected
to noon (EDT) on May 19, at Room
2033, Two Rector St., New York, N. Y.
be
to
stock held; rights to expire March
supplied by amendment.
Proceeds—
Paine, Webber, Jackson & Curtis,
Mass.; and Hamlin & Lunt, Buffalo, N. Y.
March
Salomon
due Dec.
common
to
Stearns & Co. (jointly); The First Boston Corp.
Blyth & Co., Inc. (jointly); Kidder, Peabody & Co.;
and
basis
(with stock purchase warrants)
Price—To be
24.
oil
(3/5)
filed 200,000 shares of common stock
(par five
Price—$10 per share. Proceeds—To pay devel¬
opment costs and for purchase of laboratory equipment.
Feb.
for
share. Proceeds — To construct
working capital.
Office —1040 Main
$1
(3/15)
participations
^subscription pursuant thereto.
shares held
—
if Spa-King Mount Clemens Water Products Corp.
company's
"Investment Plan for Salaried Employees," and 50,000
.shares of common stock (par $1) to be offered for
—$10.50
Price
stock.
Box
400,000 shares of capital stock.
filed
be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co.; Blyth & Co., Inc.; The First Boston Corp.; Kuhn,
Loeb & Co.; Salomon Bros. & Hutzler; White, Weld &
Co., and Shields & Co. (jointly); Lehman Brothers;
Union Securities Corp.; Merrill Lynch, Pierce, Fenner
& Beane.
Bids—Expected to be received up to 11 a.m.
(EST) on March 30.
if Pittsburgh Consolidation Coal Co.
Feb.
repay
Underwriters—To
Proceeds—To
if Pioneer Fund, Inc., Boston, Mass.
Feb.
Proceeds—To
1984.
Dealer-Manager
York.
Union Uranium Co.,
bonds, series E,
bank loans and for new
March 3 filed $17,000,000 first mortgage
due
of'
plus $2 in cash for each American Woolen
share.
The offer will expire March 22, unless
common
(3/30)
if San Diego Gas & Electric Co.
share of preferred and one-half share
a
stock
extended.
New
derwriter—None.
of
(3/19)
Feb. 25 (letter of notification)
17,526 shares of capital
stock (no par) to be offered for subscription by minor¬
ity stockholders of record March 19 on basis of one new
share for each 12% shares held; rights to expire on
April 26. National Fuel Gas Co., majority stockholder,
will subscribe Tor an additional 28,554 shares.
Price—
$15 per share. Proceeds—For acquisition and working
•capital. Office—Warren, Pa. Underwriter—None.
Hedges stock, and will expire
of St.
holders
^Pennsylvania Gas Co.
Benson &
Superior Paper Products Co. on the basis of 3.1
Regis stock for each Superior share. Un¬
stock of
shares
March 4, 1954
stock of American Woolen Co. on the basis of
common
common
Feb. 26
Inc., Spokane, Wash.
Feb. 15 (letter of notification) 50,000 shares of com¬
mon
stock.
Price—At par ($1 per share).
Proceeds—
• Penn-Dixie
of
one-fifth of
construction.
(3/29)
if Pacific Power & Light Co.
Feb.
Regis Paper Co., New York
'<
shares of common stock (par $5) to
offered in exchange for 30,000 shares of common
be
cent). Price—15 cents per share.
Proceeds—To repay bank loan and current trade obliga¬
tions, to construct laboratory and for working capital.
Office—2563 Grays Ferry Ave., Philadelphia, Pa. Under¬
writer—'Tellier & Co., Jersey City, N. J.
stock
mon
The Commercial and Financial Chronicle■ ?t rThursday,-
i
-
Feb. 3 filed 93,000
(3/8)
(Pa.)
(letter of notification) 2,000,000
21
Jan.
'« /
St.
63
Nuclear Research Co.
•
,
;1
>
-
(1040)
Incorporated,
Providence, R. I.
Feb. 8 filed 195,668.4 shares of 4% preferred stock, series
B (par $100) and 489,171 shares of common stock
(par
50 cents) to be offered to holders of the
978,342 shares
American Louisiana Pipe
Line Co.
of American Natural Gag
CoH asked Federal Power Commission to authorize con¬
struction of a $130,000,000
pipe line,, to be financed
Nov. 10 company, a subsidiary
through the issuance of $97,500,000 of first mortgage
bonds, $12,000,000 of interim notes convertible to pre¬
ferred stock at option of company, and $20,500,000 of
stock (par $100). the latter to he sold to narenjfc.
Hearings before the FPC will commence on March 8,
Volume 179 ^Number'SSO^Y. The Commercial and Financial Chronicle
(1041)
preferred stock and one share of class A com¬
participating preferred share held.
Price—To stockholders, $15 per unit; and to public
Inter-Mountain Telephone Co,
23 it was reported company in April, 1954, majr
offer to its common stockholders some additional com¬
$15.50 per unit. Undewriters—Simon, Strauss & Himme,
William N. Pope, Inc., and Chace, Whiteside, West &
mon
it Arkansas
vertible
Feb. 22 it
mon
Louisiana Gas Co.
reported Cities Service Co. may sell its
holdings of 1,900,000 shares of this company's stock.
If
sold at competitive bidding, bidders may include Smith,
Barney & Co. and Blyth & Co., Inc. (jointly).
was
Light Co.
Arkansas Power &
Feb. 8 it
was
determined
be
bidding.
competitive
by
Fidelity Trust of America, Dallas, Tex.
22 it was announced that company plans to
Dec.
Feb. 8 it
in
was
August,
bonds
Probable
•
issue of about $7,500,000 first mortgage
Underwriters — To be determined by
First National Bank of Portland
Feb.
1984.
23
Underwriters
additional
basis of
the
of
shares
new
one
Lynch, Pierce, Fenner & Beane and Union Securities
Corp. (jointly).
"
—
For construction program*
(jointly);:
13 it
announced that company may issue audi
was
sell later in 1954 additional first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction*
Underwriters—To be determined by competitive bidding.
to issue and
Probable
bidders:
Halsey, Stuart &
Brothers and Bear, Stearns & Co.
& Co., Salomon Bros. & Hutzler
par
rights to expire on April 15. Price—$40 per share. Pro¬
ceeds—To increase capital and surplus.
Underwriter—
Unsubscribed shares to be purchased by Transamerica
(jointly); Blyth & Co., Inc., Equitable Securities
Corp. and Central Republic Co. Inc. (jointly); Merrill
Co.
Proceeds
Kansas City Power & Light Co.
Jan.
value capital stock on
share for each three shares held;
$12.50
*
—
and Merrill Lynch, Pierce, Fenner & Beane
The First Boston Corp.: Lehman Brothers.
'
sell to stockholders of record Feb. 26 a total of 400,000
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Lehman Brothers,
Stone & Webster Securities Corp. and White, Weld &
Atlanta, Ga.
To be determined by competitive bicfiding, Probable bidders: Halsey, Stuart & Co. Inc.; Whiter
Weld & Co.; Glore, Forgan & Co.; Kidder, Peabody A
Co.; Union Securities Corp., Salomon Bros. & Hutzler
(Ore.)
stockholders approved a proposal
Underwriter—Courts & Co.,
bonds due 1984.
Fidelity Bldg., Dallas, Tex. Underwriter—May be Boylen, Kasper & Co., Dallas, Tex.
Light Co.
reported company plans to sell, probably
an
due
in¬
capitalization to $3,000,000, following which
registration statement will be filed with the SRC to
authorize a new offering.
There are presently author¬
ized 35,000 shares of no par value, of which 33,750 shares
will be outstanding following present offering and sale
of 30,000 shares of common stock at $10
per share.
Business—A discount and lending organization. Officea
Co., Inc.; The First Boston Corp. and
W. C. Langley
& Co. (jointly); Lehman Brothers,
Equitable Securities Corp. and White, Weld & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on April 20.
stock.
Jersey Central Power & Light Co.
Dec. 16 it was reported company tentatively plans to*
Issue and sell in 1954 about $6,000,000 first mortgage*
its
crease
bidders: Blyth &
Arkansas Power &
Dec.
Wlnslow, Inc.
(4/20)
reported compaqy plans to issue and sell
70,000 shares of cumulative preferred stock (par $100).
Proceeds—For construction program.
Underwriters—
To
stock for each
Co. Inc.; Lehmsmt.
(jointly); Kuhn, Loeb*
and Union Securities*
Corp. (jointly); Glore, Forgan & Co.; Blyth & Co., Inc,
and The First Boston Corp. (jointly); White, Weld & C<k
and Shields & Co. (jointly); Harriman
Ripley & Co., Iri<L£
Equitable Securities Corp.
Corp.
'
•
Baltimore & Ohio RR.
First National Bank of Toms
(3/15)
of Reconstruction
Finance Corporation, 8,11 -/Vermont Ave., N. W., Wash¬
ington 25, D. C., on March, 15 for the purchase from the
RFC of all or any. part of $65,000,000 collateral trust 4%
bonds, series A, due Jan. ,l,.i?65 of this railroad; Under¬
writer—To be determined by Competitive bidding. Prob¬
able bidders: Halsey, Stu£rt & Co. Inc., The First Bos¬
ton Corp., Merrill Lynch, Pierce, Fenner & Beane and
Alex. Brown & Sons (jointly); Bear, Stearns & Co.
\
Bids will be- received by the Secretary
Boston Edison Co. ,7'rv-
Feb.
15 it
announced; company plans to issue and
$15,000,000 Of first mortgage bonds due 1984.
was
sell about
Proceeds—For construction program.
Underwriters—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly); White, Weld & Co.; Harriman Ripley &'
Co. Inc.
Offering—Tentatively expected in June.
Carrier Corp.
Feb.
the
authorized
approved
a
proposal
to
increase
common.rstock (par $10) from 1,600,000
shares to 5,000,000 shares and the authorized preferred
stock (par $50) from 181,855 shares to 800,000 shares
•
Florida
25
on
Illinois Electric & Gas Co.
announced company intends to offer and
sell around the middle of 1954 an issue of $4,000,000 first
mortgage bonds. Proceeds—To repay bank loans and for
new construction.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).
it
was
reported company plans sale during the
of 1954 of $10,000,000 common stock after
of.its
holdings of Central Maine Power Co. common stock.
Probable bidders: Blyth & Co., Inc. and Kidder, Peabody
& Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co. (jointly); Harriman Ripley
first quarter
distribution by New England Public Service Co.
& Co., Inc.
petitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston Corp., Eastman, Dillon & Co.,
Goldman, Sachs & Co. and White, Weld & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane and Salomon
Bros. & Hutzler (jointly); Lehman Brothers; Union Se¬
curities Corp. and Kidder, Peabody & Co. (jointly). Bids
—Tentatively expected to be received in May.
Columbia Gas System, Inc.
March 2 company
filed
an
(4/21)
application with SEC cover¬
proposed offer of $50,000,000 convertible subordi¬
debentures due 1964 to common stockholders on
the basis of $100 of debentures for each 36 shares held.
Proceeds
For construction program.
Underwriter —
To be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.
Bids—Tentatively scheduled for April 21.
ing
a
nated
—
Consolidated Natural Gas Co.
Jan. 27 it
was
reported company plans to issue and sell
$25,00,000 of debentures due 1979. Proceeds — To pur¬
chase stock of company's operating subsidiaries, who in
turn will apply these proceeds for construction. Under¬
writers
To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Col Inc.; White,
Weld & Co. and Paine, Webber, Jackson & Curtis (joint¬
—
ly); Morgan Stanley & Co. and The First Boston Corp.
(jointly).
Offering—Tentatively expected in May.
Federal Loan Co. of Pittsfield,
Feb.
23
Metropolitan Edison Co.
500,000 shares and the common stock from 2,500,000 to 5,000,000 shares. Underwriters — Kidder, Peabody
& Co., and Merrill Lynch, Pierce, Fenner & Beane, both
Dec. 16 it
of New York.
by competitive bidding. Probable bidders: Halsey, Stuart;
& Co. Inc.; White, Weld & Co.;
Kidder, Peabody & Co*
and Drexel & Co, (jointly); Kuhn, Loeb & Co. and Salo¬
mon Bros. & Hutzler
(jointly).
was reported company
may sell in 1954 about?
$3,500,000 first mortgage bonds due 1984. Proceeds—For-
000 to
construction program.
Florida Power & Light Co.
reported company may later this year
$15,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.
25
Jan.
it
was
issue and sell about
Probable bidders: Halsey, Stuart & Co. Inc.;
Foote Mineral
20
on
it
was
sell
shares to 1,000,000 shares. There are pres¬
ently 276,088 shares outstanding and an additional 43,217
shares are reserved for conversion of debentures and
stockholders
approved
a
Inc.
proposal to increase
the authorized class A'common stock from 250,400 shares
550,400 shares and the authorized convertible pre¬
ferred stock from 100,000 shares to 250,000 shares and
to
tq change the name of corpqration to Signature Loan Co.,
Inc. It is proposed to offer to, the holders of the 29r458
$1.20 cumulative participating preferred stock, one share of new'77-cent cumulative con¬
shares of outstanding
loans.
shares are available for the em¬
ployees' stock bonus plan. The proposed increase in
capitalization is necessary to provide additional shares
Mountain
Co.
if it
advisable for stock dividends or a stock split. Un¬
derwriter—Estabrook & Co., New York and Boston,
1
( Mo.)
its contract to sell the Gas Service Co.'s
of
1,500,000 shares
stoqk to Missouri Public Service Co. for $32,If these shares are again registered with the
common
000,000.
bidding.
Kidder,
Peabody & Co. (jointly); Smith, Barney & 'Co.; Stone &
may be offered for sale at competitive
Probable bidders include: Blyth & Co., Inc., and
SEC, they
Webster Securities Corp. and Stern Bros. & Co.
General
Dec. 16 it
Public
was
(jointly);
Corp.
Utilities Corp.
announced company plans to offer about
600,000 additional shares of common stock (par $5) to
stockholders in March or April, 1954 — probably on the
basis of one
To
new
share for each 15 shares held.
Price-
be determined just prior to the offering date.
ceeds—To be invested in the domestic subsidiaries.
Pro¬
Un¬
derwriter—None, but Merrill Lynch, Pierce, Fenner &
Beane may act as clearing agent.
•
Georgia Power Co. (4/6)
an application with SEC for issuance and
March 1 filed
sale of
$11,000,000 first mortgage bonds due 1984.
Pro¬
ceeds—To repay bank loans and for construction pro¬
Underwriters—To be determined by competitive
gram.
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Salomon Bros. & Hutzler and Shields & Co.
(jointly); Harriman Ripley & Co., Inc.; Union Securities
Corp. and Equitable Securities Corp. (jointly); The First
Boston Corp.; Lehman Brothers; Morgan Stanley & Co.
Registration—Planned for March 10. Bids—Expected to
be received up to 11 a.m. (EST) on April 6.
Gulf Insurance
Co., Dallas, Texas (4/12)
R. Mansfield, President, announced that com¬
pany plans to offer to its stockholders of record April 12
the right to subscribe for 5,000 additional shares of cap¬
ital stock (par $10) on a pro rata basis.
Price—Not ex¬
ceeding $55 per share.
Proceeds — To increase capital
and surplus.
Underwriters—None.
Feb. 15, T.
Indiana &
Michigan Electric Co.
announced company plans to sell around
November, 1954, an issue of about $16,500,000 first mort¬
gage bonds due 1984 and 40,000 shares of cumulative
Jan. 27 it
was
preferred stock (par $100).
Underwriter
termined by competitive bidding.
For bonds—Halsey,
— To
be de¬
Probable bidders: (1)
Stuart & Co. Inc.; Union Securities
Corp., Goldman, Sachs & Co. and White, Weld & Co.
(jointly); The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.; (2) for preferred—The First
Boston Corp.; Smith, Barney & Co.; Lehman Brothers;
Union Securities Corp^ - "
*
Underwriter—For
common
stock
(now in regis¬
States Telephone & Telegraph
(3/26)
Feb. 20 it
seems
Feb. 25 Cities Service Co. announced the cancellation of
company plaris to issue and
common stock and borrow $18,000,00$
connection with proposed acquisition oC
tration): Kidder, Peabody & Co.
the remaining 180,695
company, or
announced
ing consummation of proposed merger of the two com¬
panies, it is planned to sell $9,000,000 of first mortgage
bonds, $2,500,000 of debentures and 65,000 shares oC
preferred stock (par $100). Proceeds — To retire bank
April
from 500,000
growth of the
was
1,500,000 shares of common stock of Gas Service Co. of
Kansas City, Mo., at a total cost of
$32,000,000. Follow¬
increasing the authorized common stock (par $2.50)
to finance the continued
it
$14,000,000 of
from banks in
Co., Philadelphia, Pa.
announced stockholders will vote
Underwriters—To be determined
Missouri Public Service Co.
Dec. 28
White, Weld
Co.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane; Glore, Forgan & Co. and Harriman Ripley &
Co. Inc. (jointly).
Central Power &
March 2 company
•
announced stockholders will vote March
Union Securities
Light Co.
applied to SEC for authority to issue
and sell $18,000,000 first mortgage bonds, series F, due
1984.
Proceeds—To refund an issue of $8,000,000 4Vg%
Series E bonds and to repay bank loans and for new
construction.
Underwriters—To be determined by com¬
•
$24,610,000 Atlanta, Knoxville & Cincinnati Division 4%s
1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive!
bidding. Probable bidders: Halsey, Stuart & Co. Tnr.;
Morgan Stanley & Co.; White, Weld & Co. and Salomo®,
Bros. & Hutzler (jointly).
\
/ '
increasing authorized preferred stock from 250,-
it Gas Service Co.
Central Maine Power Co.
7
was
was reported that the
company may issue an&
issue of bonds late in 1954; Proceeds—To retire*
an
bonds due May
Corp.
Power
15 it
Feb.
22
Oct.
sell
expire on June 16. Price—$50 per share. Proceeds—To
increase capital and surplus. Underwriter—rNone.
Feb.
provide for further possible financing. Proceeds—
expansion, etc. Underwriters—Harriman Ripley &
Co. Inc. and Hemphill, Noyes & Co.
was
Nov. 12 it
.
.
to
Dec. 9 it
Louisville & Nashville RR.
(5/14)
scription by its stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock (par $10) on the
basis of one new share for each 26 shares held; rights to
For
Central
River, N. J.
plans to offer for sub¬
&
stockholders
23
12 it was announced bank
Jan
was announced
company will offer to its stock¬
holders of record March 26, 1954 the right to subscribe
on
or
before April 30 for 487,248 additional shares ot
capital stock on the basis of one new share for each four
shares held. Price—At par ($100 per
share). Proceeds—
repay advances from American Telephone & Tele¬
graph Co. (owner of 85% of outstanding stock) and for
new construction.
Underwriter—None.
To
•
National Fuel Gas Co.
Feb. 9 it
(4/12)
reported company plans issue and sale ot
Underwriters—For any-
was
$15,000,000 25-year debentures.
debentures
to
be
determined
by competitive bidding;.
Halsey, Stuart & Co. Inc.; The First
Boston Corp.;,Kuhn, Loeb & Co. and Wertheim & CoJ *>
(jointly); White, Weld & Co.; Harriman Ripley & Co.
Probable bidders:
Inc.
Bids—Tentatively expected
11
a.m.
•
New
(EST)
on
to
be
received
up
to
April 12.
Jersey Bell Telephone Co.
(5/4)
petitioned the New Jersey P. U*
permission to issue and sell in May
$25,000,000 of first mortgage bonds and $75,000,000 of
capital stock (the latter to American Telephone & Tele¬
graph Co.). Proceeds—To finance construction. Under¬
Feb.
the
19
Commission
company
for
writers— To
be
determined
by competitive bidding.
Halsey, Stuart & Co. Inc.; Kuhn,
Co.; Morgan Stanley & Co.; Shields & Co.;
White, Weld & Co.; The First Boston Corp.
Bids—
Tentatively expected May 4.
Probable
Loeb
bidders:
&
New Jersey Power & Light Co.
16 it was reported this company tentatively plans*
issue and sale in 1954 of about $3,000,000 first mortgage
Dec.
bonds due 1984.
new
Proceeds—To repay bank loans and for
construction.
Underwriters—To be
determined
by
competitive
bidding. Probable bidders: Halsey, Stuart
Inc.; Kuhn, Loeb & Co. and Lehman Brothers
(jointly); Equitable Securities Corp.; Union Securities'
Corp. and White, Weld & Co. (jointly); Merrill Lynch*
Pierce, Fenner & Beane.
&
Co.
New
Orleans
Public Service Inc.
reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late this
year.
Underwriters—To be determined by competitive
Feb.
it
8
was
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Union Securities Corp. and!
Harriman Ripley & Co. Inc. (jointly); Lehman
Brothers;
Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp;; White, Weld &
Co.
"
New York State Electric & Gas Corp.
Feb. 3 company sought authority from the New York
P. S. Commission to sell an issue of $5,000,000 par
value
'-i
of preferred
~
~
-
-
stock early this spring.
'
,7
It is also
* 7 Continue# on 'page 66
66
The Commercial and Financial Chronicle
(1042)
Continued
from
Public Service Electric & Gas Co.
65
page
planned to issue and sell in the spring $20,000,000 of
first mortgage bonds. Previous financing was done pri¬
vately.
Feb. 15 it
reported company is planning the issuance
was
sale of
bonds due
approximately $20,000,000 of first mortgage
1984
determined
some
time this year.
Underwriters—To
tive
Temco
$300,000 of
Northern
it
Co.
(jointly).
States Power Co.
and
was
1,219,864 shares of
be
first
holders
on
offered
for
l-for-10
a
stock (par $5), the latter
subscription by common stock¬
basis (with an oversubscription
common
Underwriters—To be determined by com¬
petitive bidding. Probable bidders: (1) For preferred
stock—Lehman
Brothers and Riter &
Co.
(jointly);
Smith, Barney & Co. (2) For common stock—Lehman
Brothers and Riter & Co. (jointly); The First Boston
Corp., Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Smith, Barney & Co.; White, Weld & Co. and Glore,
Forgan & Co. (jointly). Bids—Tentatively expected to
be received in April.
privilege).
Ohio Power Co.
it1
(4/14)
27
announced
was
company
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.;
Kuhn, Loeb & Co., A. C. Altyn & Co., Inc. and Coffin
&
Burr, Inc.
(jointly); Union Securities Corp} and
Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co. Inc. and Stone & Webster Securities Corp. (jointly).
Bids—Tentatively expected to be received up to 11 a.m.
(EST)
on
April 14,
Ohio Power Co.
Feb.
8
it
(4/14)
announced
was
company
handled by
was
& Co., Drexel &
Riddle
Jan. 7 it
reported
to
soon
x
company
issue
securities.
new
was reported
company plans issuance and sale
$20,000,000 of debentures in April or May and $25,000,000 of first mortgage pipe line bonds in July. Pro¬
of
tc
up
ceeds—For
& King
new construction.
Underwriters—To be de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. (jointly).
termined
12 company applied to New York Public Service
Commission for authority to issue and sell 50,000 addi¬
plans to issue and
Texas &
preferred stock (par $100). Underwriter
Corp., New York.
year
to
it
issue
bank
repay
stock.
that company plans
reported
was
and
loans
sell
and
Underwriter
—
securities.
new
to
redeem
Merrill
later
Probable
thii
Bros.
Proceeds—To
convertible
&
preferred
Lynch, Pierce, Fenner &
Feb.
27
23
stockholders
will
vote
April
up
to 11 a.m. (EST) on
April 14.
it Pennsylvania Power & Light Co.
1
it
common
sue
of 705,000
basis of
—For
one
announced
shares of
common
share for each
construction
company
seven
stock
(no par)
shares held.
on
the-
Proceeds
Underwriters—Drexel &
Co., Philadelphia, Pa. and The First Boston Corp., New
program.
York.
Public Service Co. of Colorado
Oct. 13 it
planning to float ar
issue of $15,000,000 first mortgage bonds, due 1984, early
in 1954.
Proceeds
For financing, in part, a $17,000,000 electric generating plant to be constructed in Denver,
Colo.
Underwriters—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; The First Boston Corp.; Harris, Hall
& Co. Inc.; Harriman Ripley & Co., Inc. and Union Se¬
curities Corp. (jointly); Lehman Brothers; Kidder, Peabody & Co.; Blyth & Co., Inc. and Smith, Barney & Co
(jointly).
was
reported
company
is
—
of the company from
$25,000,000 to $50,000,000.
The
has no specific financing program.
Under- *
writers—Previous offering of $24,952,800 3% convertible
Scudder Fund of
fiointly).
13,1954.
Trans-Canada
Lines, Ltd. will
1
it
new
reported this company,
was
construction.
Southern
Jan. 27 it
Gas
announced
was
stock
mon
Indiana
Trip-Charge, Inc., Pittsburgh, Pa.
was announced
company is increasing its cap¬
contemplation of an underwriting. Proceeds
Jan. 20 it
ital stock in
on
Electric
Co.
one
share for
new
Jack Manson
200
Julie Brown
Sid Jacobs
200
Joe Donadio
Feb.
Jan.
27
it
was
Gas
announced
&
Electric Co.
seven
West Coast Transmission Co.
Oct.
bonds; and $24,440,000 in sub¬
Bids—Tentatively
expected
Southwestern
was
Canadian
Oregon.
under
plan
of
distribution
Feb.
of
of
149,974
re¬
assets
gamated
Growth
Share
Amal¬
Industries,
stock at $2
per
Inc.
share.
The net proceeds from the
financing
are
to be
to
used
new
pur¬
chase patents, patent
applications,
machinery and for
22
etc.,
15
working capital.
15
14%
14V2
14
13
12
10
10
5%
4%
for
new
11
West
N.
Y.,
ware
office at
Street, New York,
incorporated in Dela¬
June 9,
ganized to take
1953.
over
It
was
or¬
all the rights
to
patents,
patent
applications,
devices, products, processes, dem¬
onstration units and
other
assets,
formerly vested in Synchro Elec¬
tronic Corp., Quantum Corp., a
predecessor Research Corporation
and in various individuals.
The
Penn
Power
Co.
key
the initial
devices,
success
upon
(4/20)
r
Stuart & Co. Inc.; The First Boston Corp.; Lehman
Brothers; W. C. Langley & Co.; Kidder, Peabody & Co.
and White, Weld & Co.
(jointly); Kuhn, Loeb & Co.;
sey,
to
Harriman
for March
Ripley^ & Co. Inc.
Registration
Bids—Tentatively expected
26.
primarily based, are the Rava
inventions, namely: The Recurrent
Surge
Arc
Welder,
the
Electric
Arc Torch and the Resilient Shell.
gram
ment
company's immediate pro¬
is confined to the develop¬
exploitation of the Re¬
and
current
Surge
Arc
Welder,
the
continuance of tests with the pres¬
ently
existing
16
KVA
heat-affected
and
rocket
parts of jet, ramjet
motors, and for dem¬
onstration
as
the
for
lining the
small
a
scale
production
pilot
of
ti¬
tanium metal.
which
Scheduled
April 20.
Co.
Vice
2nd
-
Vice-President:
Raymond
Schibowski, of Hirsch & Co.
Treasurer:
of
Bache
&
Albert J.
Eisenberg,
Co.
t
Assistant
Treasurer:
Henry
J.
Bash, of Neuberger & BermanJ
Secretary:
Carmine
of Richard J.
Carmello,
Buck & Co.
Assistant
Secretary: Leon Norako, of Gude, Winmill & Co.
Financial
Secretary: John E.
Jacobs, of Eastman, Dillon & Co.
The annual induction dinner of
the division
P. & S.
Tabulating
Group Elects New Slate
Richard
H.
Stewart
of
Purchases
&
Division
of
tion
Stock
of
Sales
Wall
—Tabulating
Exchange
Firms,
that the following
(Special to The Financial Chronicle)
-
PASADENA, Calif.—Neil Crane
has become affiliated with Milton
C.
He
Powell
was
ham
term
Co.
year;
Saturday,
Statler.
Joins M. C. Powell Co.
officers have been elected for the
of one
on
I
Lehman
Street, Associa¬
held
was
Feb. 27, 1954, at the Hotel
Brothers, retiring President of the
has announced
of the company
on
President:
Anthony
Rizzuto, of Hayden, Stone & Co.
tion, testing and demonstration of
the 50 KVA model'for
&
1st
Electric
Arc Torch, and with the construc¬
—
President: James R. Graham, of
Asiel
42nd
was
on
an
Underwriter—Eastman, Dillon & Co., New York.
Proceeds—For construction program of West Penn Power
Co. and its subsidiaries.
Underwriters—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
plant
Amalgamated, with
natural gas pipe line from the
western Washington and
Peace River field to
is
The
of
4.100,000 shares of
public.
Proceeds—To
the
.
Southwestern's
shares
a
to
1 it was reported
company plans to issue and sell
$12,000,000 of first mortgage bonds, series P, due 1984.
Underwriter—Union Securities
Corp., New York, underwrote sale of Sinclair's
holdings
in Colorado Interstate Gas Co.
a
sold
Feb.
15.
Offered at $2
be
i
Development Co.
announced that Sinclair Oil
upon
'
West
769,722 shares of Pioneer Natural Gas Co. stock
be voted
to
finance construction of
on
Corp. will
long-term debentures and
stock
common
13.
Jan. 18 it
ceive
5.
it
ordinated
—
March
14
was
announced mat company now
plans: to
issue $29,000,000 in l-to-S^-year serial notes;
$71,000,000
in 20-year, first mortgage
(4/13)
$8,000,000 of first mortgage bonds due 1984. Pro¬
new construction.
Underwriters—To be de¬
termined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co.;
Kidder,
Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros. & Hutzler; The First Boston
Corp.; Equitable Se¬
curities Corp.; White, Weld & Co. and
Shields & Co.
(jointly); Blair, Rollins & Co. Inc.
Registration
for
company
—
sell
April
Telephone Co.
announced
was
Co., Inc., San Francisco, Calif.
ceeds—For
Planned
Coast
it
California P. U. Commission
to issue 20,000 shares of com¬
mon
stock (par $25).
Proceeds—To repay bank loans
and for construction program.
Underwriter
Blyth &
plans to issue and
company
6
authorized
has
*
Indiana
issue
Jack Manson
each
5.
Southern
Points
224
West
plans to offer to its
114,166 additional shares of com¬
Office—
6, Pa. Meeting—
doubling present au¬
,f
on
thorized capital stock.
(3/25)
shares held about March
24; with rights to expire about
April 9. Proceeds—For construction costs. Underwriter—
Smith, Barney & Co., New York. Registration—Expected
Security Traders Association of New York, Inc. (STANY)
Bowling League Standing as of Feb. 25, 1954 is as follows:
Greenberg
Stockholders will vote Feb. 23
company
basis of
a
common
Tom
—For expansion program and
working capital.
Fifth Avenue at Hamilton, Pittsburgh
Corp. and Lehman Brothers
&
Brothers; Wood, Gundy & Co.
Trie.
Underwriter—May be determined by
Probable bidders: Halsey, Stuart
stockholders
common
^
5 Point Club
merge
a
(jointly); Kidder, Peabody & Co.; Union Securities
Corp.
Previous financing was done privately.
SECURITY TRADERS ASSOCIATION OF NEW YORK
200 Point Club
Pipe Lines, Ltd.
Underwriters—Lehman
-.■
subsidiary of,
South Carolina Electric & Gas
Co., is planning to issue
and sell
$12,000,000 of bonds.
Proceeds—To pay for
f
Manson (Capt.), Jacobs,
Topol, Weissman, H. Frankel
Growney (Capt.), Corby, Siegel, Voccoli, Lienhardt
Donadio (Capt.), Craig, Gronick,
Bies, Demaye
Serlen (Capt.),
Rogers, Gold, Krumholz, Gersten
Leone (Capt.), Nieman,
Gannon, Tisch, Greenberg
Bean (Capt.),
Bass, Valentine, Eiger, Bradley
Kaiser (Capt.), Hunt,
Werkmeister, Swenson, Ghegan
Krisam (Capt.), Pollack,
Cohen, Smith, Strauss, Define
Burian (Capt.), Gavin,
Clemence, Montanye, Whiting
Klein (Capt.), Fredericks,
Murphy, Weseman, Mewing
Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
Hunter (Capt.),
Brown, Alexander, Farrell, Barker
April
.
ir South Carolina Generating Co.
March
Hiscox, Van Meter & Co., Inc.,
Philadelphia, Pa., are offering an
Team:
on
29 it was announced
preliminary to the financing and
company intends to make an
construction of a 2,240 mile natural gas pipe line from
initial public offering of its common shares in the
United in¬
the Alberta fields to Toronto, Ottawa and Montreal.
states to realize at least $5,000,000.
'
Jan.
Notes
JNC.
Bids—Expected to be received
Jan. 11 it was,reported this company and Western
Pipe
Canada, Ltd.
Industries Inc. Stock
^
,
250,000 shares of
Proceeds—For investment in subsidiaries.
Inc.
debentures', in September, 1953, was underwritten by
Co., Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
Drexel &
Amalgamated Growth
NSTA
.
be determined by competitive bid¬
Probable bidders: Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane and Union Securities
Corp. (jointly); Lehman Brothers and Bear, Stearns &
Co. (jointly); The First Boston
Corp. and Blyth & Co.,
company
March
(4/1)
plans to offer to
stockholders of record about April 1 an is¬
was
(4/13)
ding.
competitive bidding.
tatively expected to be received
stock.
Underwriters—To
increasing the authorized common stock from 5,000,000 to 10,000,000 shares and the authorized indebted¬
on
& Co. Inc.; The First Boston
50,000 shares of cumulative preferred stock (par
Proceeds—To repay bank loans and for new
construction. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Lehman Brothers;
Kuhn, Loeb & to., A. C. Allyn & Co. Inc. and Coffin
& Burr, Inc. (jointly); Blyth & Co., Inc.; Union Secu¬
rities Corp. and Salomon Bros. & Hutzler (jointly); The
First Boston Corp.; Harriman Ripley & Co.; Inc. and
Stone & Webster Securities Corp. (jointly). Bids—Ten¬
Inc.
common
announced
was
&
Co.
years.
Halsey, Stuart & Co. Inc.; Salomon
Hutzler; Kidder, Peabody & Co.; Blair, Rollins
Feb. 19 the directors authorized sale of
Paper Co.
it
(3/24)
bidders:
Texas Utilities Co.
Beane, New York.
Scott
Ry.
240,000 equipment trust certificates due in l-to-10
Safeway Stores, Inc.
8
Pacific
Bids will be received by the
company up to noon (EST)
on
or about March 24 for the
purchase from it of $1,-
—The First Boston
Feb.
Corp.
reported sale of
is
Tennessee Gas Transmission Co.
Feb.
tional shares of
was
of
letter oi
a
Underwriter—Eiselg
sell
its
Kan.
Jan. 27 it
...v
plan&~ta file
aggregate ,„yalue
an
$100).
March
Wichita,
.in-March.
headed by Morgan Stanley
a group
stock
Co. and Glore, Forgan & Co.
Airlines, Inc.
was
notification
ness
plans to issue and
sell an issue of $20,000,000 first mortgage bonds due
1984. Proceeds—To repay bank loans and for new con¬
struction.
Underwriters—To be determined by com¬
Jan.
Corp.,
about $5,000,000 of pre¬
planned, partly for account of company
and part for
selling stockholders. Underwriters—Van
Alstyne, Noel & Co., New York. Registration—Expected
ir Rochester Gas & Electric
(Minn.)
reported company plans to issue and sell
150,000 shares of cumulative preferred stock (no par)
to
stock
it
ferred
Libaire, Stout & Co., New York.
&
by
Aircraft
Feb. 9
„
Wertheim
8
A.).
circulating equipment, etc.
bidding.
Probable bidders:
Halsey, Stuart & Co
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly),
Kuhn, Loeb & Co. and Lehman Brothers (jointly); The
First Boston Corp.
Previous public offering of commor.
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.,Inc.; Lehman Brothers and
Riter & Co.
(jointly); Smith, Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
Feb.
(O.
was
reported company may do some
financing
later this year, either public or
private." Business—Air
writers—For any bonds will be determined by competi¬
(Minn.)
Power Co.
States
Northern
be
$50,000,000 financing program is expected in the Spring
The type of securities to be issued is still
undetermined,
but some form of debt financing is indicated.
Under¬
a
Thursday, March 4, 1954
.
*
Feb. 8 it
and
Sutton
Jan. 27, G. H. Blake, President, announced that
.
.
&
Co., Security Building.
formerly with Harris UpCo.
and
King Merritt &
Number 5304
Volume 179
,,
.
The Commercial and Financial Chronicle
(1043)
Southern Natural Gas
be available foe the
nicipalities, and directly to certain
and
industrial
improvement
increasing of the company's
months
facilities.
31/8% Bonds Sold
g
A
syndicate headed by Halsey,
Stuart & Co. Inc. offered
2
March
on
$20,000,000 of Southern Natural
Co. first mortgage pipe line
Gas
sinking fund bonds, 3Vs%
due Feb.
crued
1.
This offering was
and
the * books
closed.
of
won
sale
issue
was
'
Mar. 1
on
proceeds
bid of 99.48%.
a
from the
sale
of
the bonds will be used for the pre¬
of the
payment
company's
3*4%
notes, due June 1, 1954, outstand¬
ing in the principal amount .of
ended
company
cf
nues
of
capitalization
of
in
extending
Texas,
from
Louisiana
The
3,422.102 shares of
the
is
now
DIVIDEND
MIAMI COPPER COMPANY
NOTICES
ROME CABLE
Y.
February 25, 1954
A
DIVIDEND
cents
AMERICAN
LOCOMOTIVE COMPANY
New York 8, N.
Y,,
per
share
of record
the
at
been
III
declared,
ROME
close of business
60th
JOHN
i
NEW YORK
•
stockhold¬
to
March 10, 1954.
Preferred Dividend No. 183
at whole¬
has
payable March 30, 1954,
ers
||V CrApeldZum,
quarterly dividend of fifty (50e)
NOTICES
transmission
and sale of natural gas,
Mask—Frank¬
with J. Clay¬
Co., 1562 Main Street.
ton Flax &
NOTICES
61 Broadway, New York 6, N.
30 Church Street
business
DIVIDEND
stock.
princi¬
company's
SPRINGFIELD,
lin W. Weiss is
long-
and
sippi, Alabama, Georgia and South
pal
and
of
gas
Mississippi to markets in Missis¬
Carolina.
Inc., 408 Olive Street.
of the company will
$124,670,500
debt
:ommon
system
ST. LOUIS, Mo.—Robert L. Degenhart is with Siayton & Com¬
pany,
Clayton Flax Adds
(Special to The Financial Chronicle)
outstanding'
financing,
interstate natural gas pipe
an
fields
Giving effect to the
J.
(Special to The Financial Chronicle)
-
term
ates
Oct.
$6,702,000.
current
With Siayton & Co.
-
12
$44,982^000 and net income
consist
line
the
31, 1953, the
had total operating reve¬
Southern Natural Gas Co. oper¬
by the group at competitive
on
Net
,
the
at
case.
ac¬
oversubscribed
Award
regular redemption
prices ranging from 103.50% to
par, and for the sinking fund at
oar, plus accrued interest in each
series,
1974, at 100% and
interest.
The bonds will be subject to re¬
demption
For
users.
67
G.
Dividend
Consecutive
GREENBURGH,
,
$17,COO,000,
which
and
were
in-
with
sale
other
to
companies
and
the
Common
mu-
Dividends
in
purred
connection
construction
the
of
ance
The
program.
net
($1.75)
bal¬
proceeds will
DIVIDEND
of
NOTICES
Pittsburgh,
NOTICES
At
of
meeting
a
the
payable
record
ness
Common
(1J4%)
Dividend No.
dividend
the
on
of
the
Preferred Stock
for
quarter ending March 31, 1954 and
dend
of
Stock
i
20(
share
per
stockholders
record
close of
the
of
busi¬
1954.
declared
and
dividend
a
three-eighths
of
cents
payable March 15, 1954, to Preferred stock¬
holders of record at the close of business
March
on
the
5,
1954.
March 8,
1,
1954
A.
McCASKEY, JR.,
Secretary
'
1
'
A
dividend
per
of
manufacturing company,
Dividend No. 96
S
(B)
.
of
march
been
stock,
declared
cents
dividend
of
the
on
share
the
no
the
COMMON
the
at
close
of
business
A
value
of
and
on
after
.
-books
March
15,
Bank
MARSHALL G.
1(
ApfU
ALLYN
dend of
1954
this
the Capital Stock of
on
Company for the
A
quarterly dividend of 60i
payable
April 15, 1954,
ers
Dividends have been declared by
the Board of Directors, as
quarter
close
of
1954,
WestPenn
per
Electric
April 1, 1954
on
business
of record
at
15,
Quarterly Dividend
on
>
55*
Vice-President and Treasurer
the close of busi¬
follows:
March 15, 1954.
i
ary
Dividend
I
Record Date March 12, 1954
*
DIVIDEND
NO.
March 31,
1954)
COMMON STOCK
The
Board
of
Directors
lias today'declared a
dividend of Seventy-five Cents
'party
($.75)
stock
per
share
of the
par
its capital
value of $50
on
share, payable March 30,
1954, to stockholders of record
at
the close of. business on
1
'
'
•
The dividends are payable
C.
EARLE
15, 1954.
Sec-e ary
25
.
1
CANADA
ivW
DRY
|
Secretary
international minerals
jj
fj
& chemical corporation
y/.yy
IN
U.
S.
AND CANADA
800 OFFICES
1
1
and Treasurer
Broadway, New York 4, N. Y.
f.y/y.
General Offices:
20 North Wacker Drive,
DIVIDEND
NOTICE
The
following
have
been
dividends
by the
C. I.T.
share in cash has been
Feb. 25,
declared
the
on
Common
close
Stock of C. I. TV Financial
FINANCIAL
CORPORATION
DIVIDEND NO. 126
of
business
Quarterly Dividend of
($1.00) per Share.
$5.00 Par Value Common Stock
on
1,
1954,
to
payable April
stockholders, of
record at the close of busi¬
ness
March
10,
1954.
The
transfer books will not close.
A
15, 1954.
Regular Quarterly Dividend of
Forty Cents (40?)
Both dividends
quarterly
$0.15
mon
per
dividend of
share on the Com¬
March 30.
Stock, payable April 1,
1954 to stockholders of
March
!
C.
John Kuhn,
Treasurer
closed.
to
will
Share.
the close of
A.
The Board of Directors of this
today
company
cash
dividend
(50c)
stock.
a
share
declared
Fifty Cents
on
the capital
This cash dividend
R.
Cohill
be
will
paid March 30, 1954 to
stockholders of record at the
close
of business March 9,
1954.
Vice President and Treasurer
★
Vice President-Treasurer
Wm. J. Williams
I
If
Mining and Manufacturing
Phosphate
Chemicals
Potash
•
•
a
of
be
mailed.
Vice-President & Secretary
February 25, 1954.
at
per
payable
stockholders
15, 1954.
Checks
129lh dividend declaration
are
business March 19, 1954.
Transfer books will not be
Checks will be mailed.
1954,
of record
rec¬
ord at the close of business
on
m
I
Common Stock
Corporation,
on
follows:
as
One Dollar
stockholders of record at
March
COMPANY
PITTSBURGH, PA.
48th Consecutive Regular
Stock, payable April 1,1954
the
1954,
of
4% Cumulative Preferred Stock
$4.25 Cumulative Preferred
to
||k
declared by
the Board of Directors
were
Preferred Stock
quarterly dividend of $0.50
FIRE INSURANCE
DIVIDENDS
declared
A regular quarterly dividend
of $1.0625 per share on the
per
Chicago 6
★
Board of Directors:
A
NATIONAL UNION
y////
§
V/s
OVER
ELECTRIC SYSTEM
Monongahela Poiver Company
The Potomac Edison
Company
West Penn Power
Company
:.Jf
March
'
1, 1954
WEST PENN
York
" ' 1
* \
n,
i~i, M
William E. Thompson
March
,
MORAN
-
,.«*
fyot^tevr
31, 1954 to stockholders Of rec-1
ord at close of business March
per
March 6, 1954.
..
Quarterly Dividend of
$.60 per share
of
id'Anaconda Copper Mining Com-
JGuargiily Trust Company
.
,
.
'
Declared March 3, 1954
.
"
183
February 25, 1954
BARNES, Secretary
of 1946
Series
$.81 V* per share
>••=-.
(for quarterly period ending
..
K.
PER SHARE
Payable March 31, 1954
23, 1954
CUMULATIVE PREFERRED STOCK
STUART
the
COMMON STOCK
ANDREW W. JOHNSON
stockhold¬
to
March
Board of Directors.
Febr
ness
Company
(Incorporated)
declared by the
was
-•^endrng March 31, 1954, payable
on
.
DILLARD, Secretary
quarterly divi¬
a
Seventy-five (75) Cents
share
per
NOTICE
-DIVIDEND
AnacondA
be
by
Company.
THE
Common Stock
1954.
#
not.
mailed
be
Manhattan
Dated, February 25, 1954
CONSECUTIVE DIVIDEND
President
N. V.
LOAN CORPORATION
$3.25
business
172nd
BENEFICIAL
NORRIS,
will
will
5,. Louis
day declared
the
declared
of
Stock has
share
Secretary.
'
the
to stockholders of record at the
April
books
Checks
of
been
1954, to holders
close
1954.
transfer
closed.
,
cents
the outstanding
has
1,
the
at
March 22,
The
The Board of Directors lias this
out-N
at
April
record
DIVIDEND
twenty-five
on
stock
payable
INTERNATIONAL
of
share
a
common
New York, March 3,
stock
and
dividend
(251)
on
fjh SH0E
J] J)/ COMPANY
quarterly
iss«H*ct
corporation's
business
of
Richmond 19, Virginia
Vice President & Treasurer
and the regular quarterly divi¬
the 5%% cumulative preferred
day
1, 1954, to the-stockholders of record
on
COMPANY
Reynolds Metals Building
on
the
of
this
as
parr
corporation,
standing, payable
close
METALS
Paul E. Shuoads
common
inc.
<f»ISEed thirty-
1954)
per
the
on
REYNOLDS
stock of this company, both payable
March
10, 1954 to stockholders of
i
has
1954
a
a
February 17, 1954,
quarterly dividend of
seventy-five cents per share on
the capital stock., which will be
payable March 11,
1954, to
stockholders of record February
26, 1954.
(35) cents
share for the first quarter of 1954
has
of Directors at
on
declared
y
Corporation
N. YMarch 3,
Consecutive
Cents
Forty
_
the Com
'm.'b/oEB,
Brooklyn,
Directors
Weiss, Secretary
'to0* stockholders of record
SAI.TINOK
NUrruMio
96 of
No
A
a
Dividend No. yo
($.40) on
^ORMWATIOH^
<February 25,
meeting
thirty-five
South Bend, Indiana
ARUNDEL]
five
Rome,
4
1954.
10,
Secretary
T. E. JEANNERET,
X
March
on
Gerard A.
DREWKYS
1
■
Arundel
ness
12,
Drewrys Limited U. S. A., Inc.
Notice
i, payable March 30, 1954, to hold¬
ers of record
at the close of busi¬
closed.
February 25, 1954.
A
Board
March
on
be
not
Secretary and Treasurer
Dividend
The
■
The Board
February 24, 1954
V
share on the Common
Capital Stock of the Corporation,
have been
1, 1954, to holders of
business
will
has declared
Dividend No. 60 for
35 cents per
the
Dividend
E. F. Page, Secretary and Treasurer
>
Company
on
Corporation
consecutive
97th
1954. The stock transfer
books will remain open.
the close of
record
holders of
to
this
share
per
February 25, 1954
dend
S.
divi¬
a
have been declared. Both dividends
payable April
are
at
Common
the
on
nine
Corporation,
31, 1954, to
March
per share on the $4,375 Cumu¬
Preferred Stock of the Corporation,
lative
share
per
The Board of Directors of Rome
Cable
cents
Common
($1.09375)
182
75(
5,
also
Board
dollar
one
192
March
on
The
the
on
of
Stock
Note
Company
quarterly
(25()
Transfer books
1954.
five
CARL A. SUNDBERG
the Board of Directors
Ludlum Steel Corpora..on
ue.d
today,
February
25, 1954 a dividend of fifty
cents
(50c) per share was
Common
A
of
Treasurer.
119
the Preferred Stock and
on
Pa.
of
declared
Dividend No.
share
No.
seventy
Allegheny
American
Preferred
dollar
five cents
Stock
record at
Allegheny Ludlum Steel Corporation
Bank
Dividend
one
declared, payable April
added to working capital and will
DIVIDEND
per
twenty
Common
be
of
•
Plant Foods
Industrial Minerals
Amino Products
G3
The Commercial and Financial Chronicle
(1044)
be
BUSINESS BUZZ
Washington.
from the Nttion'i
y|
to
as
over¬
case
su¬
boosted income tax exemptions
and to condemn the GOP tax
§
/I f w\A/
Capital
P.
(whose benefits to in¬
program
^
Behind-llie-Scene Interpretation*
vastly superior
whelm the enemy. In this
the "enemy" thinks it is
perior political strategy to talk
•
•
Thursday, March 4, 1954
..
.
dividuals
JL \J
dispersed
and
something designed
are
complex)
as
only for the rich and business.
No
Is
WASHINGTON, D. C.—There
no doubt th^t most of Wash¬
ington,
Jhe
like
the"
•country,
was
and
perhaps not a little shocked
when Senator Walter F. George
completely reversed what all
rest of
surprised
crats, Conservatives as well as
Leftwing,
would
utilize
any
weapon in the political arsenal
tiad
Georgia
ophy.
think
to
come
Senator's
that
Senator George got up before
the National
Press
Club
and
seemingly
with
argued
the
♦greatest conviction that this un¬
just business of taxing the poor
too harshly must be reversed;
that
the
the
upon
lower
income
middle
be
must
burden
onerous
taxation
tower
of
kick
to
the
over
revi¬
tax
sion bill. He said that while he
disagreed with no part of that
tbill, its enactment should await
another day.
•
is
This
the
Senator
same
Walter F. George who
the
of
man
Finance
as
Chair¬
Committee
tax
fathered
-at
from
tax
the
of
as
Roosevelt's
George
who
to
cozen
It is the
brackets,
•vpper
oppose
upon
to
rates
who
was
to at least
few
is
the
Senator
within
certain
a
mo
„
as
to
do
a
as
individual
but
who
holds
neverthless
a
come
of
a
and
which
if
one
a
a
private
general rule, how¬
good bet that it is
ranking minority member
prefer to
be instead
the
gan
when
are
the
chairmen
tive committees
the
the
White
drafts
This
certain
of
judgeship
large sal¬
not
was
will
the
unique.
Should
welfare
moment
talk
more
active
than
appar¬
action—
again
gain
and
fresh
a
pro¬
the
man¬
next
November, then it
happen also to Republican
chairmen who
in the past have
from
such
were,
for example, Chair-
position,
even
Democratic
committees,
a
was
conservative
correspondent
chairman
in
a
to
at
sponsored.
holes
of
heart.
be
the
this
Capitol
of
just
White House break¬
it
seemed
it.
About
is
an
all that
old rule
can
on
learned
at
West
conditions:
emy
whose forces
measures,
one
basically
still in force, and one which has
literally cost
strategy
an
Reid,
Joseph
Janet
M.
Brothers,
now
larger than your own, avoid
giving battle, unless one has a
billions than
or
terrain
so
likely to
The Ecuadorian Corp. Ltd.
I
with
us
BOUGHT
•
—
East
Coal
—
a
33rd
&
Street,
(cloth), $4.
Industry,
conference
Bureau
Pro¬
of
on
Business
Re¬
College of Commerce,
West Virginia University, Mor*
gantown, W. Va. (paper),
|
Financial Public Relations for the*
Business Corporation—Herman
S.
Hettinger—Harper & Broth¬
49
ers,
York
East 33rd Street, New
16, N. Y. (cloth), $3.50. .«
Italian Affairs
—
ian
Affairs,
Rome, Italy;
per
Periodical—Ital¬
Via
$1
Veneto
per
year;
56,
15C
copy.
•
QUOTED
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Dejonge Com.
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John
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Robertson Electric Com.
Tejon Ranch
Carl Marks
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Member Midwest Stock Exchange
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Harper
search,
Louis
associated
McConnell
the
Commercial & Economic Health
Louis
is
49
ceedings of
Use-
equal to
are
Mr. Robert H. Matthews
i
L.
Hooks
New York 16, N. Y.
Bituminous
Its
and
Hoyt, Margaret G,
en¬
or
more
Income
Elizabeth E.
WE WILL BUY
When confronted with
Deal
pleasure in announcing that
if
American
Point, and which is applicable
to the political wars under 1954
a copy
of the most radical New
one
in
suggested
Eisenhower
fast, he had been handed
1954
Even
President
military strategy which General
This
into
the
program
perfect, the Democrats would be
impelled, for such is the brutal
nature
of
politics,
to
shoot
fundamentally
ran
tax
a
chairman,
the orig¬
chairmen
circumstances it
would matter little what kind of
handed
emergency
most of
inal
Under these
Roosevelt's
particular
as
were
called
Bookshelf,
of
Program
legisla¬
and
Mr.
even
compensa¬
of
were
House
sweeping, so-called
legislation.
after, at
take
a
a
Democrats Would Hit Any Tax
tions, wholly intangible, which
matter of time before Demo¬
date
ap¬
and
session, the first, which be¬
under FDR in March, 1933,
to the Senator's
There
come
case
President
of
Man's
faith¬
Republicans,"
Eisenhower's
become
connection, this cor¬
points up again a
recollection
its
happened to others.
ently
respondent
personal
Business
par¬
for life.
gram—for
Philosophy
Chairman.
clear the
Republicans
lacked, on a major issue, a
strong,
working
majority
in
Congress, that it would be only
in public
in private life.
man
FDR's Lieutenants Changed
this
He
g-regulatory
secured him
And his
re-
and may or
may not coincide with
the "Chronicle's"; own views.)
accepted,
so
n
rewarded with
was
ary
In
or
d i
became
He
"reactionary
support,
one
year
s p e n
(This column is intended to
fleet the "behind the scene" inter¬
pretation from the nation's Capital
reluctantly,
cial
next
will
with mixed results raise the is¬
ful advocate in battles with the
thousands of responsible
life than in
a
a
No¬
elections
he
they
can
finally embraced this
scheme.
important people approach
for guidance, for
for
"Why
acquiesced
ticular
becomes
whom
wailed,
in
and
a
pocket
chairman
opposed the welfare state.
Committee who would not
much
became
We
then
big
his
the
things like this to us?"
first
becomes
the whole economy.
the
individual
power over
One
do
of
bill,
proximately 19 years and 11
months back, in the hectic spe¬
it is
a rare
of
would
consequence
only
victory at the Con¬
motives. As
ever,
so
his
This
entirely
tion
lieuten¬
hands, who do
mot appraise politics as a gentle¬
man's game, it has been ex¬
pected from the moment that it
March 1,
One
program.
shared
almost
some¬
that disliked Presi¬
upon
out
of the
correspondent is
without any informa¬
vember.
To these older
a
Committee,
gressional
ants.
♦
the
Taking
copy
Mr.
Democratic
essentially
successful
whose
have the satisfaction
can
comprehend during its
The chairman invited
the correspondent for coffee.
abhorred.
carving his principles
dent's
people
It
as
M
Cane! ! "
more
20 years.
a
pationally, in the
about
politically amateur if otherwise
and
President
a
of
party,
own
And the expression of the ego
is not more subordinate, occu-
chance
ical warfare than has President
mature
one's
aid.
most
Finance
tory and who have a different
appraisal of the nature of polit¬
his
with
what
example, if Senator
George aspired to return one
day to the Chairmanship of the
They
are
Republican legis-
and
prestige does not
mainly
from
holding
incumbency
of
one
One
of
For
tators who remember their his¬
Eisenhower
social
impelling motiva¬
is, without ascribing it to
individual
in
particular,
power and position.
limited
in position came
older
raising
tion
of
surprise.
great
those
this
This
•circle in this capital city, there
were
some
to whom the Sen¬
ator's shift
or
office.
were
the Excess Profits tax.
Yet
meant by
any
there
ardent opponents
more
I
Finance Committee
the
President
of
mistake
big"
derive
same
whom
of
the
bureaucrats, excluding
businessmen-officials
category,
as
indi¬
viduals who already had made
an
outstanding mark in the
competitive business world, and
the
whose
vestment incentives.
it
99%
during
ideas
Figure
and
Demo¬
sue.
of the
man
even
Motives
the motives of
of the professional politi¬
from
ward hitting at business and in¬
And
Herbert Clark
up
Many make
miscalculating
cians
somewhat the trend to¬
George
in that
Congress,
Mr.
merry and expert
NOT what
Yet
program.
enough
a
Congressional followers still
"That's
big
a
but
Know
demagogue the blazes out of
the Democrats, whilst his GOP
responsible,
fathered
well
this
to
to
1930-32
Power
income in the
and
•usually counted
crat
on
angry
admit Eisenhower threw away a
wonderful if speculative chance
time
one
Hoover.
Senator
confiscatory
upon
lost their terror.
Mr.
legislation
fiscally
a
best ball carrier
or
issue.
issue, they remained
Con¬
a
same
seemed
never
the
of taxation
same
be
is
that Senator McCarthy
or
out from Brownell
rug
public
became
he
stand-in,
directly
anti-com¬
reporter
When Mr. Eisenhower pulled the
Harrison
Garner,
tax
sponsored
Garner did
budgets and who disliked deficit
financing.
like
orators
Pat
heaped
until
job of carving
unbalanced
of
foe
a
Nance
servative
the
This
White case, Democrats were as
terrified as they were
angry.
and ridicule upon the last
John
played,,
General Brownell raised the
ney
previous Republican President.
Senator George who was always
known
Great
Mississippi
scorn
pol¬
The point is that when Attor¬
Senator
late
the
of
nature
with
issue.
that
on
po¬
dent of seniority, were primarily
economy
$2,000 to,
time, $500. It is the
one
a
is
it
issue,
ax.
southerners.
of
comprehend
is the worst
These leaders, under the acci¬
same
exemptions under
personal
position
with
him
at
litical meat
could
George—steadily whittled down
the income
hacked
and
legislation
which—if not all under Senator
the
leadership
a
failure
not expressing a personal opin¬
ion that this is or is not a good
Con¬
of
demonstrate that Democrats too
during Democratic Administra¬
tions
in
members
the
Administration,
claw
it is
as
munist
figuratively both cut Mr.
Hoover into
political ribbons
and
to
and
So
who
and
^inflationary. His latest surprise
itics
recall, for instance,
two years of
Hoover, it was
the
Democratic
gress
attitude,
tooth
last
the
of
present
men
in
Herbert
classes
lessened; that an un¬
budget would not be
balanced
was
These
philos¬
tax
debacle
George is merely
with its "be nice to Democrats"
'30's
Conservatives
Were
the
was
the
Game
threatened
symptomatic
come.
Hatchet Men of
"
the
Senator
over
to cut down their opponent.
That moment has
Gentlemen's
Thus
10 Post Office
Securities
Square, Boston 9, Mass.
Telephone
HUbbard 2-1990
Teletype
BS 69
@FedFRASER