Full text of Commercial and Financial Chronicle : March 5, 1953, Vol. 177, No. 5200

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iversitv

OF MICHIGAN

MAR

TELEVISION INDUSTRY FEATURED IN THIS ISSUE

Number 5200

New York

Price 40 Cents

7, N. Y., Thursday, March 5, 1953

EDITORIAL

We See It

As
The

Economic

for

Committee

Development,

convinced, first that

Asserting electronics

wise, in

investment

then

of electronic developments makes
immeasurably difficult to evaluate this field. From a
social standpoint these developments promise a new way
of life. They present a great new industrial factor with
«

must

cance

tion

page

THIS

DEALERS

tation,

And

yet, only

years ago, electronics
more than sight and

nications,

the
"

sound

functions

commu¬

referred to then

was

necessary

short

few

comprised little

could

ahead
of

nitfd'etn electronics tran¬
scends industry. Electronics has be¬
come

science

well

art.

alysis

Its

tal that

use

human

the

which to
ever

electronic devices can and do supplement
They have increased the vision of

CONCERNS YOU AND YOU AND

page

for

the

business

less human effort and at ever more renumer-

at ion.

The

beauty of it was that the capital needs
Continued

-:c\ ■«

State and

WESTERN

Municipal
Bonds

Hawaiian Securities
Direct Private

Wires
Bond Department

Chemical

Dean Witter

BANK & TRUST

14 Wall Street,

COMPANY

Co.

50 BROAD ST,

San Francisco

Boston

Missouri

Los Angeles

•

OF NEW YORK

Chicago

Members

Bonds

New

American

Stock

Exchange

Teletype: NY 1-708

BONDS & STOCKS

Teletype NY 1-1843

BRIDGEPORT

Tele. NY 1-733

Maine Public
Service Co.

DEPARTMENT

Goodbody

PERTH AMBOY

upon

request

Maintained
Traded

Brokers and Banks

Co.

ESTABLISHED 1891
MEMBERS NEW YORK STOCK EXCH.

New York 4
>

OF THE CITY OF NEW YORK

Analysis
Net New York Markets

BANK

NATIONAL

and 10 other Western Cities

SECURITIES

Broadway, New York 4, N. Y.

Telephone WHitehall 4-6500

American Stock Exchange

TeL Dig by 4-7800

Denver
Spokane

American

30 Broad St.

NEW YORK CITY

CANADIAN

York Stock Exchange

•

Angeles

CANADIAN

To Dealers,

Request

Hardy & Co.

50 BROADWAY

Los

Exchange

Commodity Exchange, Inc.

Circular

THE CHASE

1915

1832

Stock

York

Bond Dept.

j..

T. L. WATSON & CO.

Pacific

ESTABLISHED

Salt Lake City

Honolulu

ESTABLISHED

J. A. H0GLE & CO.
Members of All Principal Exchanges

Principal Commodity

Members of

THE NATIONAL CITY BANK

New York, N. Y.

and Security Exchanges
:nt
bond department

Members

page

HAnover 2-3700

telephone:

Members 1Sew

interest to all those engaged in
corporate securities.

Pacific Coast &

Municipal,

with

YOU —The editorial, "Incredible—But True!"

Securities

wherewithal

provide jobs for ever more workers at

U. S. Government,
State and

flourish was the abundance of capi¬
readily flowed into trade and industry

available

an¬

senses.

through the sale of securities, thereby making

of energy.

Beyond the wildest dreams of

Continued

employment for all those desirous
.

this country

information.

fancy or fiction

with

working.

of human

cations involved in the

military establishments and the proper
of our government, we nevertheless
sure
that prosperous times would lie

field embraces virtually every phase

Another with the tabulation and

whether

determine

do. is

Implicit in those major ingredients that made

activity. One phase is con¬
cerned with the concepts and appliPaul A. Just

electronics industry.

starting on this page deals with a subject that is of vital
the issuance, underwriting and distribution of

vamped, then, despite our national debt of $26?
billion, and a budget adequate to provide for our

Today,

our

the

ment of the automobile in transpor¬

could—and presumably

Continued

steam engine

modify

much economic signifi¬
development of the
had in the mechaniza-'production, or the develop¬

perhaps,

have

specific law adds to or subtracts from those in¬
gredients that made this country the production
miracle it is and the standard of living of our
people the envy of the whole world. This test
should be applied right down the line on all laws
enacted in the past two decades.
If this were
done and substandard laws were repealed or re¬

The dazzling rapidity

tariff policies and procedures
in various ways to enable foreign goods, particu¬
larly British goods, to enter our domestic markets
more freely. To the protectionists throughout this
country and to industries which believe them¬
selves to be dependent upon the protection preswe

All

vacuum

during the so-called New Deal-Fair Deal
bad for America.

Administration is good or

particularly in view of sub¬
tubes, and sees great
potentialities in electronics industry.

into modernization of her in¬
dustrial plant. Meanwhile Britain needs better
opportunity to reach foreign markets. In our own
case, better management of our purchases of raw
materials from the sterling area would help, and
—

enacted

of electronic equipment,

use

stitution of transistor for

really isn't hard to decide whether legis¬
affecting our economic life which was

lation

time^ application of electronics. Predicts

peace

j The Committee believes that should we bear a
| greater share of NATO costs, corresponding
would

Congressional action advocated.
It

factory value of television output in 1953 will exceed
$2% billion. Looks for spectacular growth in industrial

drastically altered;
i and, third, that Britain's difficulties go deep and
! can be dealt with effectively only by greater ef¬
ficiency in British .industry and more liberal
i treatment of British
goods at our borders.

amounts of British funds

layoffs of workers in event business activity recedes.

dynamic quality of electronics industry. Says pro¬
duction of television equipment for entertainment is still
largest single reality, as well as most important dollar-

of the costs of NATO rearma¬
ment or face disaster; second, that the kind of
aid that we have been granting in the way that
it has been delivered tends to be "self-defeating"
dropped

unprece¬

dented

have to pay more

and hence is to be

markedly reduced number of
banking and brokerage firms. Held to have
adversely affected foreign trade, small business and
liquidity of the exchanges, and to be accelerators of

investment

is here, but still largely in

age

custody of the armed forces, Mr. Just reveals

shall

of their enforcement has

Vice-President

Television Shares Management Company

of the two countries..

The Committee is

reveals combined effect of these laws and the method

By PAUL A. JUST
Executive

Copy

Repeal of Securities Acts and abolition of SEC and
NASD advocated.
Hypothetical interview with dealer

And Eventualities

commonly known as the CED, has come forward
with a report embodying the findings of an ap¬
parently rather exhaustive study of the British
situation as respects its defense preparations and
our
part therein. The timing of this document,
whether planned that way or not, is excellent.
It can hardly fail to attract attention at a moment
when this precise subject
is being earnestly
studied and discussed by leading representatives

INCREDIBLE—BUT TRUE!

Television—Its Realities
J

«ww'jmtmm

Pat. Office

Reg. U. S

Volume 177

6 1953

115 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

Dqmixiox Securities
Grpokatioti
40 Exchange

Place, New York 3, N. Y.
WHitehall 4-8161

Stock Exchange

ira haupt & co.
York Stock Exchange
Principal Exchanges

Members New

and

other

111 Broadway, N.
WOrth 4-6000

Teletype NY 1-702-3

Boston

Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

I } ^ vt f \{ I

)

f'J'-h* 7<0

(994)£Vf ;,

The Commercial and Financial Chronicle.,.

.V^

Thursday, March 5, 1953

+rrt*-

The

WE POSITION and

TRADE

in the investment and advisory

participate and give their

Chemicals

week, a different group of experts
field from all sections of the country

reasons

for favoring

(The articles contained in this forum

Colorado Interstate Gas

Copeland Refrigeration
Filtro

Schering Corporation

St.

Southern Union Gas

Preferred

large

Corporation

1920

Exchange

Teletype NY 1-583

Specialists in

Rights & Scrip
Since 1917,.

ffipQNNELL&ro.
Members
American Stock Exchange

Tel. REctor

2-7815

Trading Markets

Alabama-Tennessee
Natural Gas €o.

paper

Gas Co.

Lynchburg, Va.
Tele. LY 62
LD 33
llllllllllllllilllllllllllllllllllllllllllll

LAMBORN & CO., Inc.
99

wall

street

new york 5, n. y.

SUGAR
Raw

Refined

—

Liquid

Fla.,

Tacoma,

and

mills.

Washington,

The mill is advantageously

relation

the

com¬

pany's pulpwood supply which it
owns
or
holds under long-term
management contracts. It has con¬

flexibility, which will
permit St. Regis to favorably ex¬
ploit its productive capacity, and
the company is confident that it
will be able to sell all of the out¬

During the 4th quarter of 1952,
business of St. Regis picked

the

sales

standpoint.

and
an
earnings
Even without the ad¬

capacity of the Jackson¬

H. Hentz & Co.
Members

York

New

Stock

Exchange

Stock

Exchange

New

Cotton

Exchange

York

Commodity
Chicago

Exchange,
Board

New Orleans Cotton
And

other

N. Y. Cotton

Inc.
Trade

Exchange

Exchanges

Exchange Bldg.

NEW YORK 4, N. YCHICAGO

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND

Regis

Within

Paper

owns

expansion

can

approxi¬

in the immediate area at the pres¬

ent time.

St.

Regis is reported to
be joining with Gulf Oil and Com¬
monwealth Oil on a proposed test

material

chemicals

lonitrile

such

Chemstrand

acry-

The chemical industry is a re¬
search
industry but not many
miles chemical
companies choose to do
north of the Pollard Field, and if
a
really extensive research job,
this test results in an oil well, the
preferring to concentrate in par¬
implications would be favorable.
ticular divisions. This is not true
Other companies also plan to drill
on

St.

Regis

test wells around St-

of Monsanto whose research effort

Regis' hold¬

has had

Elsewhere in
the State of Florida, Sun Oil, Sin¬
clair, Pancoastal and others are
planning important geophysical,
exploratory and drilling activities.

ings

during

1953.

paper .as¬

Actual

dollar

ditures

around

21/2%

are

expen¬

trile.

was

This project had been under
several years before it

for

way

our

branch

offices

Maryland Casualty Co.
Common

Rgts.

South Carolina Electric & Gas

General Aniline & Film "A"

Foote Mineral
Common

the

dustry

now

tial

industry,

paper

view of

favorable out¬

industry,

poten¬

remains

great,

such

stocks

seems

the

over

Monsanto's

diversified
products
covered.

business

the

years

worth the pre¬
mium
prices

paid for them.
Mo

likely

n s a

common

David

W. Mc Knight

stock

npt

share sometime in the

statistically
second half; its financial position cheap; it earned $4.29 per share
is very good and as anticipated and
paid $2.50 last year, but I
earnings materialize the company am satisfied to place it in a
will be well able to distribute to

favored category at this time.

stockholders

reason for doing so is
that the company over the next
12 to 18 months sbpuld capitalize
on the completion of the largest

larger

proportion principal

earnings.

highly

and

Sales

heavily

centrated

are

number

produced

Chemic

that the company will see fit to
increase its regular dividend of

.markets

con¬

showing
as
a

the

Pollard

Security Dealers Assn.

150 Broadway

Now York 1

Tel. DIgby 9-1550

Tel. NY 1-1932

BALTIMORE TRANSIT
COMPANY
Recapitalization Plan

Memo

Request

J. V. MANGANARO CO.
50 Broad Street
New York

4, N. Y.

.Telephone

Teletype

HA 2-3878/9/80

NY 1-2970

Commonwealth

The classification is not yet avail¬
able for 1952, but in 1951 sales
were

Oil

Company

Common Stock

divided

Bought—Sold—Quoted

Prospectus

request

Gordon Graves & Co.
30 Broad Street, New York 4

Telephone

Teletype

Whitehall 3-2840

NY 1-8Q9

com¬

whole.

410 Pan American Bank

Bldg.

Miami 32, Florida

follows:

Plastics, Synthetic Resins & Sur¬
face

Coatings.

Intermediates,
Resins

29%

Plasticizers &
16

Phosphate Products and Deter¬
gents
Rubber and Petroleum Chemicals.

N. Q. B.

16
11

Pharmaceuticals, Flavors and
.!

Condiments

Heavy

Miscellaneous

...

Sales

OVER-THE-COUNTER

l. 10

Chemicals
Insecticides, Herbicides and
Wood Preservatives

INDUSTRIAL STOCK INDEX
12~Year Performance of

major

consuming in¬
dustries in order of importance
Field in southwestern Alabama by
I
are
plastics and synthetic resins,
Humble Oil jk Refining Co. early capital expansion program in its
rubber, soap and synthetic de¬
in 1952 resulted in a sudden re¬ long history of highly profitable
tergents,
pharmaceuticals, paint
operations.
vival of interest in the potenti¬
and varnisb and inks, petroleum;
The initial phase of Monsanto's
glass and vitreous products, food,
alities of southern Alabama and
postwar expansion program : oc¬
nearly all of Florida. After the curred between 1945 and' 1950, ? -r* : ;' QontinuM on

discovery

Members N.

Buna-N

burdensome.

can

It is believed

Gersten & Fbenkel

announced in the Fall of 1950

products
should turn
above-average growth
out
to
be pared with chemicals as

The

wires

portant recent programs was the
successful synthesis of acryloni-

easily
establish a new sales and earnings
record this year. The company's
large capital expenditure program
has been largely completed and
from here on its capital require¬
ments for expansion will not be

of its

Direct

of sales

plastics
synthetic rubber. In
addition, it is a raw material for
"Krilium," the new soil condi¬
tioner, which in time may outstrip
any other present company prod¬
common
stock. .Sales last year
."Best" stocks in growth indus¬ uct
in
terms of, sales volume.
were
close to $185 million,
tries
this
at
market
level
sell
for
Experiments
in
atomic
energy
as
compared with the $196 million more money than their current apd a research program to find
reported for 1951.
earnings justify, but where the improved processes for producing
With
the
additional
are
management titanium
examples
of
the
capacity
is soundly company's many interests which
provided by the Jacksonville mill,
a 50% increase in
capacity for the
progressive go beyond the several phases of
and
production of multi-wall bags at
the
in¬ its principal operations.

per

Birmingham, Ala,
Mobile, Ala.

exploratory research they
rising. One of the most im¬

are

The oil aspects of St. Regis add

integrated

wide range of commer¬

and

for

NY 1-1557

New Orleans, La. -

and for

considerable speculative appeal to
the stock which,
on
its well
rounded and

cialization.

lan'' but it is also used in

St., New York 4, N. Y.

HAnover 2-0700

property 2%

quarter; and 64
david w. Mcknight
the 1st quarter.
This brought earnings for the full
Partner, G. H; Walker & Co., N. Y. C.
Members New York Stock Exchange
year to about $2.30, compared with
the $3.11 earned in 1951 on the
5,170,714 outstanding shares of MoQSfflto Chemical

existing

Exchange

Stock Exchange

Corp.

cents

earned

Stock

York

goes

beyond what these figures suggest
for it is a co-owner (with Ameri¬
Viscose) of Chemstrand Corp.,

the Pollard Field,

Common

Monsanto's

But

radius

New

level.

1945

earned in the 2nd

$1.00

American

sub¬

a wave

pects alone, appears reasonably that a large plant for producing
approximately 75 cents per- priced, especially in view of , its acrylonitrile would be built.
increasing
earnings and good pros¬
This
chemical is
a
share, as compared with 45 cents
key raw
earned in the 3rd quarter; 46 cents pects for a higher dividend.
material for Chemstrand's "Acri¬

likely that :St. Regis

1856

half times

one

ville mill, earnings for the quarter

look

Established

and

two

plant

gross

♦

Steiner, Rouse & Co.
25 Broad

time

were

and in

DIgby 4-2727

Basin.

Bought—Sold—Quoted,

Members

which

during

increased

•.

mately

Pensacola, better conditions

Exports—Imports—Futures

2).

which is now in production with
300,000 acres of timber- its distinctive new wool-like fibre,
lands. On approximately 250,000
the production
"Acrilan," and by the year-end
acres
of these holdings the com¬
it will be turning out "Nylon."
of kraft paper
pany owns an undivided half in¬ At rated annual capacity of
30
and
board to
terest
or
more
in
the mineral
million
and
50
million
pounds,
560,000 tons a
rights. Some of its acreage is in
Todd Alexander
respectively, the Chemstrand op¬
year,
an
in¬
the Pollard Field, and Standard
eration
should
crease of 22%.
produce around
011
of
Indiana has
brought in
The plant has the most modern
$180 million of sales.. (Compares
four wells and plans to drill more
with
Monsanto's
sales
total
of
manufacturing equipment and will on
a small block of acreage owned
$267 million last year.) Not only
permit full utilization of the com¬
by St. Regis. Humble, Gulf Oil, will Monsanto have a direct half
pany's experience gained in high
and
Standard
Oil of' California
interest here, but it will profit
volume production of kraft pulp,
are
among the companies active further
paper and board in its Pensacola,
by the sale of basic raw

company's
capacity for

ditional

Scott, Horner &
Mason, Inc.

Co., New York City.

this State, from the
the Keys, appears

30 miles of

St.

the

from

Moore Handley Hardware Co.

Louisiana Securities

Members American

activity to rival that of 1951's

up considerably.
It was the best
quarter of the year, by far, both

Dan River Mills

(Page

David

discoveries

drilling in Florida and

Williston

addition raises

Walker

—

Partner,

to $192 million.
But the second
phase, inaugurated late in 1950
witnessed
$38 million spent in
particularly inviting for the im¬ 1951 and probably close to $72
mediate future.
Many companies million in 1952 alone, with an¬
which had moved out of the area
other $37 million required in 1953
are
now back and reviving their
for
completion.
Thus by midexploratory activities.
The year 1953 plant and annual sales vol¬
1953 is expected to see consider¬
ume should be over lour times the

since 1943, but

put of the mill.

Commonwealth Natural

had

stantial strike could set off

siderable

5IIIII1IIIIIIIII1I1II1II1II11IIKIIII1I11IIIII

Alabama.

Panhandle

able

100,000

u c e

located

New York Stock Exchange

YORK

mill

new

annually. This

120 Broadway, New York 5

NEW

into

Jackson¬

tons

Associate Member

BROADWAY,

brought

company

ville,
F1 a.,
having a ca¬
pacity to pro-

New York Hanseatic

120

the

ary,

production
at

B A relay 7-5660

earnings outlook

Regis in 1953 is very en¬

couraging. In the middle of Janu¬

Taylor Oil & Gas

Stock

St.

McKnight,

by almost all of the
companies.
The field
now has 28 producers, each oper¬
a
100-barrel-a-day
ating under
allowable as determined by the

has

Dept.,

Research

Chemical

Monsanto

oil

Florida

Company—Todd

Paper

Auchincloss, Parker & Redpath,
New York City. (Page 2).

leased

major

Regis

Alexander,

nor

land in Florida and Alabama areas
were

State of

The sales and

Stromberg Carlson

American

Exchange

Regis Paper Co.

for

be,

discovery, several million acres of

and Other Exchanges

Smelters Development

Established

York Stock

New

Members

intended

not

are

St.

offer to sell the securities discussed.)

alexander

todd

Natural Gas & Oil

as an

Manager, Research Department,
Auchincloss, Parker & Repatii,
New York City

Corporation

Common

they to be regarded,

are

Alabama &

Participants and

Their Selections

particular security

Week's

This
Forum

A continuous forum in which, each

Air Products

Brown-Allen

Security I Like Best

yage

3$ Industrial Stocks
FOLDER ON

REQUEST

National Quotation Bureau
incorporated

46 Front Street

NewYork 4^ If. Y.

Volume 177

Number 5200

The Commercial and Financial Chronicle

..,

(995)'

INDEX

Electronics—An

Integrated,
Mature and Progressive Industry
By ROBERT W. GALVIN*
Executive

Investment

Stressing stability and expansion of electronics industry, Mr.
to its increasing applications and scope. Cites
broadening use of radio, television and other electronic instru¬
in

homes, industry and armed services.

Emphasizes

first

acquaintance

the electronics industry

with

in its

opportunity of

so-

business.

The

electronics

business
the

phase

portant

the

for

was

commer¬

lic, has also improved in its

elec¬

tions

Then

approximately 600 stations

during
became
of

the

tance

ago,

Koueri

tronics

finally
that

war

termination

the

there

and

the

saw

importance

1950,

radio

that

cate

potentials in

fields

these

the

pub¬

are

Television—Its

Gyrodyne Co. of America

the

Realities and Eventualities

.*:■

Industry—Robert W. Galvin.-.

Piasecki Helicopter

Subscription Television—Hope of Small Town TV
Stations—H.

years

'-Video Vista

which

truly

public,

public

the

buy,,

fit

saw

and

ing

in¬

various

—Herbert E. Taylor, Jr
1

J.F.Reilly&Co.

...

Incorporated

Developments Abroad Analyzed by Department of
Commerce

Telephones in Use__—

and progressive

tegrated, mature
industry.;

expect to get in vary¬

Last

did

year,

and

year

will

sets, and this
twelve and a

the

half

million- radios.

Increases

electronics art has to do with and

new

models such

clock

business

The electronics

makes

This

use

the

definition

tube.

vacuum

recently

has

changed because of the introduc¬
tion

the

which

transitor,

give evidence of the dynamic and

radio

has

become

necessity

will

volume that I have cited

either

supplement

take

This very change in the defini¬

tion of electronics is
of

.things

the

: one

that

one

indicator

significant

should

keep

mind when

try.

appraising the indus¬
That is, its dynamics. It is

constantly changing because our
scientists, people and engineers are

improving

constantly
ucts

and

making

finding

prod¬

our

new

ways

of this art and science.

use

public.

ficient to keep

tube,

vacuum

American

dustry

uses

digest

Direct

many,

There

important

are

that

now

reasons

radio,
novelty effect in the early
television

market.

coming

off

wears

into

get

various

these

tronics.

* i

First,
an

knew

you

business.

The

radio

important

companies

business

such

was

many

and

trim

ple

were

along,

many

mind

the

peo¬

that

the

radio business would in all prob¬

ability start
a

sudden

long decline if not

fall-off.

On the

Third,

investment

people

thrive

Cites. Recent Weaknesses in Our Economy
*

Tax

Repeal

Aid

Without

But Let's Have

the

Home

Cutting

Owners____

Expenses

Bank

See

and

Business

(Boxed)__I

"Rethinking"

Man's

the

principle

The

American

things,

older

products

Dealer-Broker

radios

Bookself

great

page

Glens Falls

•

Schenectady

ANGELES, CALIFORNIA

S. Airlines

Investment Recommendations

From

Washington Ahead of the News—Carlisle Bargeron

Indications of Current Business Activity

Mutual

Funds

News About Banks and Bankers

Observations—A.
Our

Reporter's

Our

Reporter

Wilfred

Report

HA 2-0270

•

Exchange PL, N. Y. 8

Teletype NY 1-1825 & NY 1-1826

May

We offer

Governments,.-

Singer, Bean
& MACKIE, Inc.

Prospective

Security

Securities..—

Security

Salesman's

Securities

Offerings

Securities..--.-

Utility

Now

FIDUCIlRf

—

Corner

MANAGEMENT, Inc.

Registration

be¬
are

The Security I Like Best
The

State

of Trade

and Industy

Common Stock

Current
have

Worcester

CROWELL, WEEDON & CO.

Private Wire to
LOS

•

Great American Industries

Cover

Stocks

Einzig—"Guns and Butter in Britain"

(Walter Whyte Says)

—

(Concession

ap-

You

and

The

Twice

1
Drapers' Gardens, London,
land, c/o Edwards & Smith.

Weekly

COMMERCIAL

and

Patent

Park

New

Reentered

York 7, N. Y.

REctor 2-9570 to

9576

25,

York,

I>.

WILLIAM

SEIBERT, Editor &
DANA SEIBERT,

1942,

Thursday

plete

Chicago

city

news,

Offices:

111.

every

issue

corporation

and

Other

(general

and

statistical

records,
state

issue)

135

—

news,

Pan-American

Other

quotation

(Telephone

STate

St.,

2-0613):

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Union,

$45.00

Canada,

Other
and

States,

and

Members

per

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per

year;

per

Note—On

rate

made in

per

a
in

during

Record

account of

the

Monthly,

fluctuations

exchange, remittances for for¬
New York

fund?

Available.

EISELE &

Est.
—

common

KING,

L1BAIRE, STOUT & CO

Publications

Quotation

7,506,866

AIRLINES

stock. Report

eign subscriptions and advertisements must
be

value

Owner

year.

$30.00 per year. (Foreign postage extra.)
the

Salle

Countries,

Eank

clearings,

etc.).
La

qsset

the post office at New
the Act of March 8,

Territories

Possessions,

news and ad¬
Monday (com¬

South

gain

the past 9 years.

Subscription Rates
Publisher

President

bank

with

company
1500 %

RESORT

1953

market

investment

under

Y.,

•

Every
vertising

B. Dana

1879.

Dominion

Thursday, March

N.A.S.D.)

second-class matter Febru¬

Subscriptions
HERBERT

Eng¬

non-diversified

closed-end,

record

1953 by William
Company

Office

COMPANY, Publishers

DANA

Place,

C.,

Price

Members of

FINANCIAL CHRONICLE

TELETYPE N. Y. 1-5

Chicago

•

Firth Sterling Steel

useless.

Stock Exchange

•

Nashville

•

Cinerama, Inc.

look

even

ST., FEW YORK 4, N. Y.

Boston

•

Manchester, N. H.

Corp.

•

Railroad

Spencer Trask & Co.
Albany

Cenco

35
35

Securities..:

economy

Continued

TELEPHONE HAnover 2-4300

_■

(Editorial)

Insurance

ary

BROAD

Brown Allen Chemical

Coming Events in Investment Field

WILLIAM

Harmful

Regular Features

Washington

New York

Seen

Curbs in Fighting Communism

Reg.

Members

Warns Against

PREFERRED STOCKS

specialized in

■

Program

Published

have

Associated Development
and Research Corp.

■

Drafts

Tomorrow's Markets

Fourth,

the
N. Y. C.

For many years we

____•

■>

tend

demand

willing

very

their

rendered

Analysts,

radio

designs

whole

for and buy new
fore

Elimination
A

Public

our

are

by Mr. Galvin before

Counselor

clock

consumer

obsolescence.

contrary, the radio busi-

*An address

the

portable

revitalize

seems
came

such

periodically.

the latter '20's and the '30's. When

television

im¬

again. Tech¬
nological improvements and new

during

ours

commodity

portant

utilities

radio

quickly

enough and radio becomes
Let's

phases in the application of elec¬

^Tariff

Los Angeles

Francisco

con¬

television

has, in terms of its effect

Eectronics
*

many

good business. First,

realize

Cited_______.

,the

busines will

radio

tinue to be

only

San

Demand

come.

why the
we

and

suf¬

during

for

Output

Disagrees in Part With Henry Ford's View

Canadian

stages

Phases of Application of

unit

was

unit volume to

same

Wires
•

have for all prac¬

annually

years

the

Balance

the electronics in¬

business

1930's. We still

tical

This

Teletype NY 1-3370

Philadelphia

our

business. Similarly, we find a car

certain applications of electronics

place of the

radios

technological improvement in

the

eleven million radio

Broadway, New York 6

BO 9-5133

Chicago's Television Sets Exceed Number of

kinds,

degree through the '50's

'60's.

request

half million

radios, portable radios, clock'

variety

indi¬

may

have

Study

Bonfig-___^

1953—Ira U. Cobleigh

lor

Helicopters

Kaman Aircraft Corp.

Cover

Electronics-^-An Integrated, Mature and Progressive

now

industry served up"

our

Investing—Richard Holton

Television Industry

---Paul A. Just__

the air.

Stock

Television Use in Industry and Science

receivers

home

each

YORK

4-6551

.___

show radios, and car radios. This busi¬
only what has been done, but ness is typical of the volume and

certain

NEW

Doman Helicopters

Gillespie;

phases of the business and
not

WALL STREET,

Telephone: WHitehall

American

the

about fourteen

I would like to trace these four

us!

Hiller

capac¬

couple of

FM stations

American

glamour of television.

dimensional

"Self-incrimination"

Life Insurance—Charles

Articles

and

third

Obsolete Securities Dept.

375 sta¬

were

there

were, a

In
to

stocks

Bid!

—

Allen

Elements of Bond and

U»a.v;ui

and
after

1948

Savings Bank

have wished it.

elec¬

Asked.

your

FM has not caught on as we would

impor¬

weapon,

ever,

aware

There

serve.

Grounds—Floyd A.

air. It is interesting to note, how-'

World

II,

a r

Bid.

—

Dimension

Bring

Right to Work—An Inalienable Right—G. A. Marr

Scores Blocking of Investigations

relatively

tion

Industry—Roger W. Babson__

—

2nd Dimension
3rd

Stern-

Dimension

five

were

ity to

Trading—Edward W.

stations

than there

cation applica¬

tronics.

Stock

STOCKS
1st

2,400.

are

service to the American

new

cial communi¬

mgny

example,

radio

now

im¬

1,600 AM stations

six years ago. FM,

The

elec¬

many,

For

come.

are

air

the

whole

air; in 1953 there

There

was

nsciously

aware

to:

the

Galbraith

very

the

1948 there Were

American

c o

being

business

years

that

public

part

tronics

the

Depression?—J. K.

has improved. It now has the

ness

called pure form was in the radio

Fear

Foreign Trade Under the New Administration—John Quirk-- 22

Says outlook for profits in electronics industry is good.

Your

Need

Farmers

3 DIMENSIONAL

4
6

Eyeing Tax Laws in

scription and theatre television and discusses outlook for color
TV.

Our Farm Price Problem—Hon. Ezra Taft Benson

"Do It Yourself''—A New

Anticipates further development in sub¬

progress.

AKD COMPANY

Cover

Monetary Policy and Savings—E. Sherman Adams

dynamic nature of industry due to continuing improvements and
scientific

page

(Editorial)-

Schizophrenia—James A.

Vice-President, Motorola Corporation

Galvin points

ments

Incredible—But True

LlCHTtnSTEl

Articles and Nevis

Members

New

1868

York

Stock Exch»«.*

Broadway, New York
Tel. HAnover

2-657"}

•»

The Commercial and Financial Chronicle

(996)

.Thursday, March 5, 1953

•

lie

utilities, food and finance. In
groups
quantitative, and
qualitative factors may be analyzed with
good deal of confidence so that a fairly substantial similarity of results would be
expected. On the otoer hand one
could argue that with over 1,000

Investment Schizophrenia
By JAMES A. CLOSE

Dr. Close, in reviewing

recommendati|ns and forecasts of lead¬

ing investment services, finds an astonishing

lack nf unaninuty

of opinion, particularly on individual stock issues. Cites cases
of diversion of views and recommendations, but, on fhe whole,
finds considerable agreement on

dations

Standard

and-Ptmr's Fenner & Beane had 44 individ-

and Moody s
carried^ the -next to ^
stocks in their"Sethe lowest rating of Value Line's: lectea issues" divided into four
May Be Held-Switch!
The balas
foUows:
investment
common Mocks listed on the New
ana;, or half of the issues, carried;
Type 13; Liberal Income 5; Good
York Stori; Exdiange, toere would Value Lrae s. middte or neutral
Wider Price Movement
be very few stocks on
both_ lists rating of May Be_Hdd. Foe what- 13 and Speculative' 18. • Of toe 44
just from a statistical probability ever consolation it may give, none js'
six appeared among standpoint of view. Before one jumps of the purchase recommendations arri
'H pnor»« «4
Lh fiv^
to a conclusion on this apparent of Moody's
carried an outright' appeared
among
Moody's
32
lack of unanimity of investment Switch recomimmdation of either
r^^ended issue\ Or with the

N. Y.

Bank & Trust Company, Syracuse,

National

The Merchants

Officer,

Investment

Trust

dations and less than 2% carried ;for-income by Moody's or among
Value Line's top recommendation! the 32 issues recommended for \
At the other end of The scale income by Standard and'Poof's
31.6% of toe purehare reewnmen^ total Merrill Lynch, Pierce,

these

portfolio policy. Concludes

of view by itself is no guaranty of investment
success," and "investment companies are no ^panacea.* Sees
need still of personal selections to suit individual cases.
"an eclectic point

let us look a little deeper. Standard
The Value Line Investment Sur- -Line.

and Poor

opinion,

s- or

ValueMerrill

Lynch list of selections we
higher degree of similarity to the Standard and Poor's and
Moody's lists than was the case
have

vey has revamped its procedure.
Nevertheless, not only do Standard and Poor's list of Stocks for They rate common stocks accord- ard and Poor's fail to agree but
ing to their relative desirability they sometimes disagree.
I have with the Value Line recommendaIncome in the Feb. 9, 1953 issue
m
five descending categories as
onIy a note on this as our old tions. It is interesting that among
Cowles, III, pointed out clearly of "Listed Stock Reports" recomfollows: Especially Recommended, issues have been thrown
the lack of success of stock mar- mended 32 common stocks for in¬
away; the 44 issues on the Merrill Lynch
come.
In the same issue, Moody's Buy-Hold, May Be Held, May Be but i seem to recall that Standard
k e t
forecastlist, two of them (General Foods
Held-Switch,
and
Switch.
Let
us
recommended
15
common
stocks
and
e r s.
Since
p00r's, Aug. 25, 1952, recom- and General Public Utilities) were
see
how the
for
growth. Standard and Poor's
then, how¬
recommended^ pur- mended International Harvester recommended by both Standard

Nearly 30 years t'Zo in "Econometrica,"
July,
1933,
Alfred

ticker

tape
found
its

has

basket.

that
great

your

study

guess

voted

how

de¬

were

se-

teresting
day

for

ment

in¬

t olook

James A. Close

both

lists?

the recommendations

m o-

some

honesty by asking you to
before you read further,
many-of these 116 stocks

current

listed

selections

the

New

are

of stocks

Stock

York

policies of leading experts. Exchange. How many of the 67
We will point out the degree to common stocks recommended as
which they agree and disagree most promising were on both lists?
among themselves.
Primary at-: I asked that question recently of
tention will be given to Standard -five men. One was a district repand Poor's and, Moody's recom- resentative of one of the investmendations as to individual is- ment
services.
The other four
and

sues

which

are

these
Line

recommended for

were

A second item to be

engaged in investment port-

Their

management.

folio

purchase.

Buy-Hold

Switch

desirable

balance
and

with

bonds

at any

stocks

between

->
Individual Issues
The

two

recommended

standard

investment

Standard

and Poor's

?■

were

•

rated

both

"Investors

May Be HeldMay Be Held-Switch—

———

Switch

recommended

stocks

had

as-

"most

than <*>e stock for income. Here

presented in their "Stock Sur-

had

Prominence

stocks

common

would

recommended for income.- Stand-: stable income groups

Of these 39' were
by Value Line as follows:

Especially Recommended
Buy-Hold
.r——
May Be Held-—May Be Held-Switch

—

•

given

such

pub-

Number of these rated

Sales

*21,900

Co._

Corporation

4,600

"3,700

19.800

17,000

4,300

3,000

'3,300

3,000

8,000

8,900

5,400

•

5.680

Crane

course, any one individual
investment company might have

good

sell

reason

security

at the same time another invest-

ment company might have

good

to buy the same security.
Remember that these represent
transactions in each case wherein
reason

the number of selling institutions
exceeded — or was exceeded by,

Poor's, Dec* >39,. 1952; the number of purchasing institujpricf;30%;. :j!
■-tjpns-^by at least, two.. Doesn't it

"The
as

merits

common

Moodv's
Dec 33,
22
1952
Moody
s, Dec.
1953.
Price 30%.

"With

along this

cycle moving closer
to a downturn for this type of
company, sale of the stock would
be advisable."
,
on

the lack of

Another clue
line is to take the

expected?

you

the

Another comment

^ere
^ more
diversity of investment opinion
regarding particular stocks than

retention,.5?pe>a-,

long range speculation."

most

same

favored

DUblished

and

examine

"Business

stocks

common

investment

companies

Aiaeltineer

as
Co

performance".

their

Week,"

Oct.

25,

1952,

unanimity of opinion on the part

examined the "Favorite Fifty',' in

investment services

this

compare

would

the purchase recom-

mendations

Standard

fashion.

showed

gains

arid

stocks

the

showed

ri'df losses for their 1952 performance.

"According to this crude yardstick, that group's 1952 showing so
far - has proved above-average
only where a few utility and rail
quarterly its selection list stoeks have been concerned. Its

Poor's and Idoddy's. with those of
92

„

the

country's largest brokerage
house, Merrill Lynch, Pierce Fenner
&
Beane.
This firm publishes

46
28

-—

its "Trade and Industry Sur- chokes of industrials, which at
vey." These selections are-made
^.year accounted for 38 of toe
by its high grade investment re- .
search department of over 109 favorite 50, tell a different stock.
,

,.rx

word, Value Line's recom- men under the guidance of two; .Two-thirds (25) now show 1952
mendations certainly did not agree partners,- Using their "Selected
losses, 1&%
(7) revealing - over
with the purchase recommenda- Issues" dated Jan. 27, 1953, we
^q% drops.
All 38 " also show a
fi
rv-P
Qfn
rl nvrl
rl
"Daay',c
om/4

Purch.

Standard: and

Value Line Ratings:,

1952,

21,200

wttShiugwn"rwaTe7?owS:

growth

Value Liner———

______

Grant

dur-

30,

Dtattne"-'

"We

Trading Markets

1953.

Moody's, Feb. 2, 19153.
Price 31%.

matched

Containers

merits retention."

Especially RecommendedBuy-Hold i
May Be Held———
May Be Held-Switch—__

prospects favorabje, the common at present prices

Switch

securities

ing the period Sept.
through Dec. 30,1952.

price 31%.

"With

Active

tain

may

——

shares purchased and sold of eer-

standard and Poor's, Jan. 30,

rated

for

th*m * ,overlap °" 7re

; vey"

Chronicle," Feb. 12, 1953., There
listed only transactions in.
which buyers exceeded sellers or

were

U. S. Plywood

in the "Commercial and Financial

Merck

Poor's

and

™

enumerated

were

Ansbacher Long in
"Funds Accelerate Buying of Oils"

Standard

"°--

These

Henry

hold it for its
high quality and dividend relia^bility, but should look elsewhere
for growth."

———.

fromreme

"The common stock is attractive sellers, buyers—by two or more
*or yie.ld and forlong-term ap- management groups.
Neverthepreciation possibilities.
less, notice how the number of

'
1
Moody's and the 84 recommended lows:
and
Moody's.
Besides our li- by Standard and Poor's a total of
Especially Recommended
1
braries, insurance companies, sav- only five stocks was recommended
Buy-Hold
I. "0
ings banks,
commercial banks, by both.
(General Public UtilMay Be Held___
7
trust companies, investment com- ities was recommended by StandMay Be Held-Switch—4
panies, endowments, pension funds ard and Poor's in the most promSwitch
0
and
other large
investors sub- ising category and by Moody's
Even granting that Value Line
scribe to one or more of the serv- for income.) How do these results
ices
offered
b,y each company, compare with your own estimate? rated only 79% of the combined
we
Early every month each of these
Thus there was an astonishing purchase - recommendations,
firms gives its
subscribers two lack of unanimity of opinion. If certainly see here a startling lack
of agreement.
lists
of common
stocks recomThe Value Line
investment analysis really had demended for purchase.^ Each comveloped to the degree which some
pany presents a list of common t,eiieve one would
expect them to
^stocks attractive for income and agree at this time on more than may be recapitulated as follows.
another list most
promising.frem; flve:stocks. Especially one would Total S. and P.'s and Moody's
Buy recommendations
116
are

International Harvester

Moody's, Feb. 9, 1953.
Price 31%.

Recommended

Buy-Hold

DaSes

Standard and Poor's, Feb. 6,1953.
Price 31%.

these

appeared

time and at about

suggest exchange into isMoody's had 15 common stocks sues selected from our monthly
0f
the
32 common
stocks recommended for growth.
Of iist of growth stocks."
recommended
for
purchase
by these Value Line rated i2 as fol¬

services

were

stocks recommended for

Especially

bfgtoaned

price of the stock.

same

17 ;

2, 1953, Moody's had 17
_,

same

the diversity

comi1^ey1.1 on me cuversiiy

••

of toe changes in common stock
hnWl- _
of644 in p--^ent

6 ?

——

the

by Value Line as follows:

growth (duPont, Mission Corporation and Pittsburgh Plate Glass).

given time.

0";

Each

connection.
about the

•

income.. Of

services for income! Three stocks

relative

the

Value

—

On Feb.
common

unanimity of; the issues being on both lists,
opinion among the experts as to Actually only one stock (General
portfolio policy as a whole. This Foods) was recommended by both
itself

rated

May Be Held——
May Be Held-Switch—

will be the degree of

concerns

were

follows:

esti- promising."

from 40 to 60%

considered- mates ranged

27
as

A last comment
*

f
tor

Especially Recommended

Remember

making their
selections primarily from highly
marketable
common
stocks
of
large,
nationally
known
com¬
panies. Remember, too, most of

and Poor's and Moody's.

Standard^ and [™mmon stocks. ThreeSier
o^tocome
income,
Of mendations
ui
conf"c,Ung co1?1™0"
might best<!fk.
cited r.ec^:
m this

Teremmended

recommended

both compaines are

curity and
market analy¬
sis.

and

Now let me impose on

been

Poor's

—

Moody's.

deal
has

recommendations

Standard

time

During

stocks chases of Standard and Poor s and and American Can for purchase,
Moody s are .currently rated m while
Moody's
Sept,
1,
1952,
116 Volume I of the Value Line. On recommended the sale of the same
85 by February 9, 1953,

common

being "most promising."
We have then a total of

"buy"

the

way

waste

recommended

much

ever,

Maintained in ail

Anc

tions of Standard and Poor's and

note there

Moody's.
were

Of the 92 issues which.
rated by Value Line, less

than 20% carried either

PHILADELPHIA

two

Value

Line's

pf the top-

recormhen-

are

f
■■

•

■

five issues
,<Liberal

recom-

Income.»

2.6%

these five issues was

?fQlle
among

average

decline

compared

with the 0.8% 1952 rise still listed

Continued

the 17 issues recommended

page 31

BANK STOCKS
Send for comparison of lh largest

Philadelphia Bunks

Pocono Hotels Units

TRADING MARKETS

Cambridge BIdg. 3s 1953
Leeds & Lippincott Units

Southern Advance Bag & Poper

Phila. & Trenton RR. Stock

Lehigh & New England 3s 1975
Phila. Transportation
3-6's

2039

STROUD & COMPANY
Incorporated
PHILADELPHIA
NEW YORK

•

ALLENTOWN

•

Samuel K. Phillips & Co.

PITTSBURGH

Jlfembers Phila.-Balt.

•

LANCASTER

Teletype '

Corp.

BLOCKS OF

N. Y. Phone
COrtlandt 7-6814

Uocfa

Vegetable

Parchment

OF SEASONED COMPANIES j
IN SOUTHERN CALIFORNIA

Keyes Fibre Co.

HARRY AND MYRON KUNIN

Stock Exchange

Pennsylvania BIdg., Philadelphia
PH 375

Grinnell

Kalamazoo

BOENNING & CO.
Philadelphia 3, Pa.

•

ft/imafc inve&trtA
403 W. Zth STvLOS ANGELES

•

TU-5 630

Number 5200... The Commercial and Financial Chronicle

Volume 177

(997)

e
Steel

The

Production

Electric Output

Observations.

Carloadings
Retail Trade

State of Trade

Food

Industry

Production

Business Failures

Informed

Additional

shed

production

for

the

country-at-large

Underwriters and dealers would

in
be

the period ended on Wednesday of last week, showed no appreci¬
variation

able

the

from

attained

level

near-record

cheerful

recent

the

was

during the last five months, total

case

surpassed the level of

earlier.

year

It held close to the

peak and

last

quarter of 1943.

was

straight week and

about

were

ago.!

year

World

15%

for the
of a

War

production

climbed

bit

mines this month at 239%

of the 1935-39 average, compared with
The record high was attained in October and
Full-scale war pushed the index for those

in January.

November,
months

1943.

For
„

raced

strike.

From

This is particularly

for

the

Consumer

debt

January

rose

standing aloof

instalment

purchases of automobiles and other products" during
the month. Moving against the seasonal trend, instalment credit
outstanding climbed $42,080,000 during the month.
This was the
instalment

total

indebtedness

The

January

terms

lifted

were

this kind

last

spring.

But

declines

As usually happens in January, however,

these

earlier.

year

the

summary

steel., trade.;

Those

unable

Signs that heavy steel demand is still

satisfied are

for conversion rather than trim production schedules.

pay

trims

consumer

his

conversion

commitments,

waiting in line to grab the tonnage.?

there

r'V-

marginal

these suppliers as soon as

mill
w

high-cost producers.

prices;

Only

essary

they

/•

one

V;
so

considerably

issue

;

Continued

sign

bonds

quickly.

;

new

for

same

several

a new

folios.

some

v■

unusually

for many port¬

name

.''

;

Recognizing

/
,

,..

that

the: issue

large, and very likely

be made attractive, market
observers, none-the-less, are prone
tb wonder if perhaps investors are
not

placing too much reliance

this

market

one

\ They

outlet

•

announce
...

that

with

about

the

security
of

many

prices

sufficient

state

months

those

can

access

business

and

should

ago

people who
be timed by

Wilfred

information
general

conditions, particularly if they

May

eco¬

market experts.

are

Information No Key
For the writer

group

embraces those devoting their waking

hours to hobnobbing with industrial leaders while the historical
events of individual companies, business, and the
economy are un¬

folding before their eyes; and the brokerage firm associates are
unsurpassed in their knowledge of industries as well as the tech¬
nical

factors

tered

by both groups

the

market.And

the

forecasting

results

regis¬

"not good."

are

In the face of the advance of stocks in the

1952-'53

period, 24
writers, and 8 of the 11 analysts, predicted declines—
ones moreover
including one of 23%. The arithmetical
average of the writers' predictions for the Dow Jones average of
30 Industrials, which actually advanced from 266 to
283, was 257;
and the analysts' projections averaged but 249.
Again in the forecasting of' the municipal bond yield, which
actually rose from 2.98% to 2.51%, the writers' prognostications
average was 2.19%, and the market experts, 2.16%, with one as low
of the

"1.8634%."
And not
of

only the
opinion, are

proven average

interesting;

•

...

feef jstrongly

that,

guesses on the

283-ending D. J. Industrial aver¬
from 330 down to 205; and on the 2.51%
municipals average, from 3.10 down to 1.73.
The highest and lowest
guesses, and the mean, on the other
stock groups follow:
Aetual -Market
Highest'
Forecast

D. J. 20 Rails:

writers; ——
Utilities:-

York

101

6*0

205
*

____

109

stocks:

Performance*

85 to 1091

47
46

writers

187

49 to

139

177

149

167

174 to 190

172

117

145

154s

122

138

of February, '52;

second February,-.'53.

146 to 191

The

relatively scientific market experts thus were "more
wrong" than the journalists who jotted down cavalier guesses.
....

•

Continued

on page

they want of the

all

And again,

that busi¬

once

is out of the way, the general

relieved

believe

its

could

weight,

rally

yield basis.

Impending New Issues

that

Only

handful

are

the

of debt
the

for

cards

month

the

with

issues
of

rest

week

•

■
.

has

destined to bring up for bids $10,-

joined

our

Research organization

000,000

Railroad and other

bonds
Co.

Power

specializing in

first

of' Central

and

Maine

similar amount

mortgage

bonds

Nar-

ragansett Electric Co.

Transportation securities

'The

following week, on March

17, Mississippi Power & Light Co,
will open bids on an issue of $12,-

SHEARSON, HAMMILL g CO.
'*

•

Founded in 1902

•
,

host

Principal Stock and Commoditj Exchanges

the

March 24,

NEW YORK

511 FIFTH AVENUE

CHICAGO

BEVERLY HILLS

PASADENA

HARTFORD

MONTREAL

DALLAS

BASLE

' HOUSTON

(SWrrZERLAND)

,v.

ensuing

week,

for

goodly

$16,000,000 of its

also

will

preferred.. and
with

emphasis

stocks.: 4'

available

sprinkling

equities,

the

corporate

junior

common
■

■

INVESTMENT

BANKERS

Established 1925

30-year, first. mortgage bonds.
There

LOS ANGELES

Georgia Power Co. will

receive bids
14 WALL STREET

indicated

bidders

ready to compete.
And

'Members New IYork Stock Exchange
and other

000,000 first mortgage bonds, with
a

By analysts
is

39
*\

50 stocks:

writers

•First) figure

Mean

"Times"

By analysts

-•>

;

writers
By analysts——
By

New

Lowest-

many

be disappointed in not being
get

but the great differ¬

able

issue.

error,

may

.J.

HERBERT F. WYETH

insist
those

nomic

made

disillusion

their

for

pleased to

"Herald Tribune"

will

nec-v

predictions

undertaking, due

debentures the operation will

some

are

Municipal Bonds.

age ranged all the way

and

how,

influence on the
market, involving $200,000,000 of

market,

serve

ences

Cozy

turns

the

lower general

Utility

and

The cold hard tabulation of the results of

around

a/weighty

ness

Index

impending huge offering.^?

one

on page

time in April, must be considered

Even after slash¬

sure

Too

one

been

funds.

This

Railroad,

By analysts

than most other mills.

shaving prices.

out

came

got

news

Playing

True this

ton on structural, this producer is still charging

clip without

Five"

thought •> seems
to be that everybody is awaiting
Allied: Chemical; & Dye : Corp's.

Others, charging premium prices are still able to
operate at a
merry

3%s

3.50%. One of
block

moved

Wherever
it has

-V-

far found it

to trim prices because it needed orders.

ing its price $23

the

bring

premium-priced producer has

yield

when: this

fill their needs at regular

weeks, the ruling

They will turn their backs

can

the first

dike appeared with

good-sized

(2) Consumers still find it necessary to pay premium prices
to

that

can't

and

„

others

are

erage

The writers'

;

securities,

new

maintained

the so-called "Big

place *

offering

may: prove

the

102.31

showdown they will

by their

new

& Light's $10,000,000 of new

comes

(1) Conversion deals, which have been expected to peter, out
at the end of 1952, are still going Strong. Consumers are search?
ing (some almost frantically) for ways to get out from under the
But when it

little

the offering of Indianapolis Power

long way from being
set forth by this trade authority as follows:

extra cost burden.

have

alike

satisfactory tonnage on the books are putting extra zip into the
market by other maneuvers to get the steel they want.
.

part

Overwhelming demand for steel continues to be reflected
by anxious consumers pressing to get their orders on mill books,
states "The Iron Age,'V national metalworking weekly,
in its
current

the

interests

break

for

from

Well, what

pared

credit of all types outstanding at the month-end to $23,700,000,000.
This was a drop of $239,000,000 from December, but $3,600,000,000

higher than

major

dealers

and

Industrial,

the New York "Times" average of 50
the New York "Herald Tribune" av¬
of 100 stocks, and the "Bond Buyer's"

and sizable

charge accounts built up during the Christmas shopping season.
A $320,000,000 reduction in such obligations cut total consumer :

been

go on hold¬
ing large amounts of idle cash.

consumers

bankers

however,
.

$196,000,000
in January,
1952, and $207,000,000 in the opening month of 1951.
f

field. Purveyors of

high of $16,555,000,000.

new

with

compared

least

have

requirements.

absence

carried

issues

been

stocks,

the

now,

seem

increase

have

have been irked

monthly rise since Federal Reserve restrictions

credit

spell

placements

buyers increased

side.

on new

categories, for each of which
prizes are given, comprise:—The

Jones

averages,

appearance.

tenth successive

considerable

of their

further

were

the sanguine

satisfying;■ at

in September and 235% in December.

new

making their
Mortgages and direct

losses

•

which

The

handsome

con¬

in the seasoned

Dow

the

true because its participating guess-

in the category of the very-well-informed.
For nine years the Stock Exchange firm

are

hence.

institutional investors have

been

resulting from the steel
of -193% in July, the index spurted to 228%

low

sharply in the latter part of 1952

make

both

possibility of market forecasting is
revealed results of a 12-month guessing

in¬

month.

may

week

large

247%.

Production climbed

these

Forecasting Results

the

near-

for

Eastman, Dillon & Co. has been staging a
competition in which the Street's leading fi¬
nancial journalists, along with the host firm's
partners, register, in a sealed envelope, their
predictions about market levels 12 months

issues

of the current

this

which
economy

little

is scant

skimpy

market and

market

high for the sixth successive month, the Federal
Reserve Board states, placing output of the nation's factories and *
237%

the

rather

conditions in

issue

post-

new

only

it. The list of

size

siderations which helped t© bring
about

in February

moment

ers

calendar had

However,

below the level

Industrial

the

volved

better part

Claims for unemployment insurance benefits dropped
third

the

lot

corporate prospects

and

post¬

about 6% below the all-time record set in the

war

heft to

term

output

whole

the forward

weeks, notwithstanding the holiday shutdown in many industries
occasioned
by Washington's Birthday.
As

feeling

light

the currently

contest.

industrial

Over-all

By A.WILFRED MAY

Index

Price

Auto

and

Commodity Price Index

Members New York Stock Exchange and

Other National Exchanges

UNDERWRITERS and DISTRIBUTORS
,

of INVESTMENT SECURITIES

BROKERS of BONDS,

Private Wires

•

STOCKS, COMMODITIES

Home Office: Atlanta

Phone LD-159

The Commercial and Financial Chronicle

(998)

Farm

Our Farm Price Problems
By HON. EZRA TAFT

The

Over

when

farmers to aid in developing

here to report to

Jlational

rolid progress that is
toward

and

numerous

almost

agriculture.
are

lead¬

this

largest

such

all

through
ute,

even

small

develop-

Ezra

Taft

Benson

tremendously favorable
As leaders, never miss
the opportunity to drive home the

and

these

family

calls

that
are

for

vital

well

Such

all

year's

interests

the

Every

gressmen.

nation

are

day

they

are

calling for information and seekr
irig to know what can and should
be

done

the

make

the farmer

citizens,
and

men

the

position of

secure.

be proud of

we can
women

to determine what

$5.9 billions.

The

this

budget

presented

Administration

before

have sent

"The national debt is

Des

Moines,

must

tively

Secy.

see

that they

administered,

cordance

which

addition, the accumulated
cbligational authority of the Fed¬
by

agriculture. When laws have
been placed on the statute
books,

The

Benson

the 16th Annual National Farm

corn

before

with

the

are

effec¬

and

ac¬

intent

under—the

when

corn

The
have

build-up

Sena

counsel

are

tors

and

guidance

receiving from your
Congressmen is

and

deeply appreciated and is helping
to

make

31,

corn

recent

our

work

produc¬

tive.

90%

office.

ucts

have

Prices

make

supports.

need

late

not

parity.

profitable

way

May

need

belt farmers that

not

even

to sell

corn

hogs
hundredweight.

Administration

worth

$20

Committed

of the Union

prod¬

renewed

rific

losses

address to

Congress,

his

pledges to farmers.
He said, "Present agricultural
legislation provides for the man¬

present act faithfully

cattlemen.

and

We acted without delay. Cattle¬
have always maintained and

I received the

"During the last few days

news¬

about

the

being

suggestions
by

that

are

people

some

who

"This

"So

oppose any

have always
substitute

moved

and

grading of meat.

kill

.»

had
well

now

1955

and

be¬

to all price support
Congress in its wis-

which

$2,460,000

support

combined

laws

judgments

legislation

two

George

Chairman
tural

bee

friends

powerful

Agricul¬

and

Congress¬
Hope, Chairman
House

Agricul¬

should
full

"But

not in

are

to ' keep

economic

parity

stability
income for

farmers,"

followed

ways

goal in

that minimize governmental
in

the

farmers'

af¬

fairs, that permit desirable shifts
in

production, and that

tive

themselves

meeting

encourage

initia¬

use

changing

eco¬

as to

continuing
study
reveals
nothing more emphatic than the
complicated nature of this sub¬

yield 2.50%

ject.
"Among other things, it shows
that the prosperity of our agricul¬
ture depends
directly upon the
prosperity of the whole country

Issuance and sale of these
The Offering Circular
such

Certificates

are

subject

3.65%, according to maturity
to authorization

by the Interstate Commerce Commission.

may be obtained in any State in which this announcement is circulated from
only
of the undersigned and other dealers as may lawfully offer these securities in stick State.

HALSEY, STUART

&. CO. Inc.

—upon

FREEMAN & COMPANY

"It

WM. E. POLLOCK & CO., INC.

doesn't

effective

level.

while

be worked

operations

honeymoon-

non-recourse

load reaches

purchases

loans*

its

limit.

until

After

prices have to adjust in
another

the

war

trophe

along

comes

way

which

consumed,

other

some

the

that,

one

level

the commodity will be
unless

stocks

government

being built

are

catas¬

to, bail

out."

Mr.

Davis

system
into

went

on
to say, "A
legislated, price

rigid,

extended

the

of harm

future

the

indefinitely

and

over-all

levels

supply-

"It

including

great deal

to farmers themselves."

considering

problems,

cur

competent

men

agriculture

are our

and

women

advisors. I be¬

market farm products.

have

power

upon

the

States

and

many

people.
you

research

and

sci¬

investigation, conducted

extensive

have

have had

the

involves

mechanisms and

special

credit

marketing, rural
electrification, soil conservation,
and ether programs."

well-

reason¬

Advisory Commit¬
the President met

January

the

principles

upon

the .four
in office

guidance of impor¬

14-Man

frame

depend
In

been

and committees.

groups

The

and

broad

helped

policies
which

under

and
will

working.

It finished the

work

the

re¬

organization

plan. The first part

was

this

ately

plan

placed immedi¬

into effect

following
guration. All agencies and
rations
for

Inau¬
corpo¬

placed in five groups

were

administrative

purposes.

The Committee reviewed the In¬
ternational Wheat Agreement and
for

procedure

preparing

the conference, which opened

Jan.

30, with 46 nations partici¬
pating.
International
Wheat
Agreement advisory groups con¬
sist

two

committees.

separate

Representatives of the major farm
organizations and the wheat in¬
is

work

joint

Senate

together.

The

committee

and

House of

other

from

the

Representa¬

tives.
The

Cotton

Advisors

met

last

week with 53

representatives, and
recommended 13 specific actions.
A subcommittee worked out

lative

recommendations

before

new

export

The

three

Congress

days

reached
wool

which

gram

their

men

will

and

make

effective.
sugar

explain to

producers

the

recent

concld-

conference

their pro¬

and how the Department of

Agriculture

can

be of help. They

showed how they are
of

for

conclusions

by these sheep

domestic

met

Action has

week.

manufacturers at

sion

are

for helping

Committee

last

handlers

marketing
and

legis¬

that

trade.

Wool

already been takeri

called

scale.

in the
a

When

can

results.

weeks

The

involves

masses

practical

oppor¬

foreign

the

from

able people sit down to work out

the

consumers.

depends

great confidence

programs,

countries.

"It
March 3. 1953.

purchasing

tunity to ship abroad large sur¬
pluses of particular commodities
and, therefore, upon sound eco¬
nomic relationships between the

entific

THE ILLINOIS COMPANY

the

American

United

R. W. PRESSPRICH & CO.

period

dustry

nomic conditions.
"A

supports

shirtsleeve

approved

must seek this

'farmers

payment oj the principal and dividends by endorsement
by The Central Railroad Company of Neiv Jersey

learned

law

commodities there is

with these statements:,

1968, inclusive

have

the farm, in the warehouse, or in
the
market
place.
For storable

early

Senate

out

American

(Philadelphia Plan)

Priced

price

named

the

that price supports

aim

Equipment Trust Certificates

unconditionally

should

enactment

tee

interference

To be guaranteed

"We

by now," said Mr. Davis, "that the

agriculture strong.
' When the President said, "Our

;

ture:

bare

agriculture, Senator
Aiken, who is again

tural Committee.

Company of New Jersey
Equipment Trust of 1953

$164,000 annually from March 1, 1954

by Chester C. Davis, wise observer
and long-time friend of agricul¬

tant

Committee,

the

have

staunch

Clifford

man

The Central Railroad

mature

made three years ago at this same
institute and in this same room

informed

price

present
the

and

Luckily we have many years
experience to guide us. Let me
quote
for
you
the
statements

wisdom

support

are again
eating beef under a free
price system, and preliminary re¬
ports show some stores selling al¬

The

American

Markets have stabilized. People

way

parity

prices and incomes for farmers.

dow place upon our statute books.

two; great political parties.
Taking the lead in the major price

great accomplishments flow
in

our

practical

the combined judgments of
people
who produce, process, finance, and

believe

are

been

the

100%

price supports and
under oath to give sound ad¬

pledge

themselves,, adequate

35/s%

lieve in using advisory groups, and
all
through my life have seen

me,

That

achieve

our

His

But I say to you in all sincerity,
and I think you will agree with

higher than

farmers."

President.

compulsory .those

Both

begin

develop for

ministration

know,
end
price

costly to housewives
farmers.

ports.

sequences,

laws

you

market'

consider what farm legislation we

economy.

and

should

Cattle Raisers Association."

President,
promptly

should

economy can so

farms

their products that they will have
a
minimum need for price sup¬

supports

legislation

the end of 1954.

pledge.

Signed, T. J. (Jack) Roach, Presi¬
dent, Texas a n d
Southwestern
The

support

pro¬

demand situation will support, will
have extremely undesirable con¬

the

price support

free

I, along with every member of
my staff, stand side by side with

believed there i£ no

for

price

for American

pro¬

subsidy program for cattle. We

free

their

manage

stability and full parity of income

yond. Our aim should be economic

western Cattle Raisers Association

that

income.

will expire at

price support program for
cattle.
It
has
always been the
position of the Texas and South¬
pose

of the downturn

consequences

following telegram:

papers have carried stories
made

farmers

thereby seek to mitigate the

farm

basic and sound—

of programs with which

years.

to build

are

"The prices have to

fiedly! committed to price sup¬
ports. The President, in his State

been

two

the type

Price Supports

that

the prescribed

going down for
Prices
had* datory support of prices of basic
dropped almost one-fifth before farm commodities
at
90%
of
we
took office.
Beef steers, all parity,"
grades, at Chicago fell from $34.22
"The Secretary of Agriculture
to near $24.00 in the year prior
and his associates will, of
course,
to Inauguration. It has meant ter¬
execute the
about

We propose
grams

make

This Administration is unquali¬

market

farm

should

price

had

cover

sacrifice—support

feed

now

farmers

re¬

breaks took place before we came,

into

groups of com¬

stored

supplies

the

caused

after

expects

laws

can

tell

per

graded Number 1 and 2.

controls

wise

Institute,

Iowa, Feb. 21, 1953.

moved

these

cently graded 61.3% sample grade

"In

address

sound laws

Congress.
now

than $265 billions.

*An

are

for

took

office,
"indicates a budgetary deficit of
$3.9 billions for the fiscal year
ending June 30, 1954."

said

example,
corn

loans

to
Congress.
We
shall
do
all
deficit- within our power in helping them

budget

For

coming onto the market when

cars

release

Farmers
of

use

sell

and some of it
of condition has

are,

citizens of the United States:
Current

out

milk.

storage

men

being made a first order of busi¬
by your Senators and Con¬

every

for

ness

action

address.

business

checking further depreciation
the
buying power of the

tural

farm

measure

Congress

interests of farm peo¬

response.

facts

when

deficit—an essential first

ple and the nation.
The State of the Union message
of President Eisenhower has pro¬

order

elimination

going

orderly

Department

support

modities.
full

deeply concerned, continue to assure us they want
about the decline neither price controls nor price
in prices of farm products. I' am
supports. They want free markets.
here to report that the agricul¬ As one example of many, Feb. 6,

happy to pledge to you and
everywhere that I will
always strive to do that which is

facts

President

stand

annual

farmers

contained

all

must

17 million

been

economy

one

25 commodities

there is already too much corn
selling. Such spoilage and selling
is costly to farmers and all tax¬
payers.
At Oreana, 111., for ex¬

the

dollar."

vital

basis.

and

years,

ample, 142
on

the

grams, my trip to this Forum will
be fully justified. At the outset, I

duced

financial

President

first

"The

pro¬

in the best

the

agri¬

cultural

says:

sound

with

the

balance the budget?"

Certainly

way,

the

penses and

you

description.

after
been

Congress we have elected when
they undertake to cut Federal ex¬

contrib-4

can

pay¬

has

corn

four

over

is exclusive

extensive

unsound

back

our

nation.

Some

Today there is squarely before us
this question: "How strongly will

agricul¬

ture

and

beyond

mil¬

million pounds of dried

101

Farmers, do not do business

ind ustries—
the

future

pounds of butter,

Price

pounds of cheese, and more titan

large contingent liabilities,

pro sperous

You

for

this amount

"Even

per-

manently

ers

lion

over

Objectives of New Farm Programs

telling

practice

The

has

out,

major price changes for the next
several months, and prices
"may
show some slight increases."

being purchased at a
times, well over
two million pounds each day. The

new programs.

Government

another

owns

marketing.

rat4—at

Government

the

and

Agriculture

took office.

Butter

ment totals over $80 billions.

the

being made

secure

eral

this great

Institute

Farm

strong

sent

were

that

farmers

billion dollars' worth of

rapid

pledges continuation of price supports but warns supports,
in themselves, are not adequate to keep agriculture strong.
Says Administration proposes to build farm programs that are
basic and sound, and which will permit farmers to manage
their own farms and market their products with minimum
supports. Calls for

statements

by the
Commodity Credit Corporation

"complex and difficult problems" which have
inherited by the new Administration, Secy. Benson

been

most one-third more beef. Factual

handed

farm products were owned

Secretary of Agriculture

Commenting

Problem

problems

complex and difficult.

are

BENSON*

Price

farm

Thursday, March 5, 1953

...

their

problems

solving most
how they

and

Volume 177

Number 5200

...

The Commercial and Financial Chronicle

(999)
to

propose

continue

industry

sugar

keep the

sound

The

Dairy Committee
Tuesday and Thursday
week.

These

leaders

met

belief

great

that

the

raised up the

tions

that

inspired

value

will

unlimited

arriving at the difficult

decisions that must

them

this
is

divine

the

what

support

*will

should

extended?

do with

level

all

What

of the

can

represent

interests

butter

the

dairy farmers,
dairy industry, consumers,
taxpayers?
We

wish

and

great

state

Iowa

which

pro¬

V. E. disease is creating havoc
with

sections

some

industry. On Monday
:ment

men

section

came

the

in a
They

and

hog

cross-

industry
held in

meeting

Chicago.
came
to- explain
the problem—what had been done
—and

day

to ask

they

control
and

This

Only in
safety for

what

the
in

shall

the

•

government

cultural

will

policy, agriother, should be, "How
it affect the-character, "mo¬

and

weakens

from

subsidized

May
the
to*

need

the refining
influences which

the

divine

blessings,

nation

the

and

courage

part

our

Never before have

judgment

that

free and informed

Let

comes

from

our

cesses

from

failures—were

releasing

needed the

blessings of Almighty God more
than today. We need His divine

errors

of the

to The

some

Uhlmann

Benjamin.

formerly

was

Manager for Faroll

Financial Chronicle)

Calif.

Chronicle)

LOUIS, Mo.—Sherman Ed¬

wards has become associated with

mind,

David

Owens has joined the
Managed Investment Pro¬

Sutter Street.

Feb.

Hendrick,

Hibbs

22.

guidance. Tues¬
livestock disease

met

various

state

organizations.

New Issue

group of capable, highly respected
•citizens is being appointed by the

President
advise

of the

tions

United

States to

All

these

illustrate the
will proceed.

■

"Corporation.
of how

$7,000,000

in the important opera¬
the
Commodity Credit

Houston

pattern

Department

your

Agriculture to do? How

serve

Dated April

numerous

programs

and

great decisions for which the

Sec¬

retary of Agriculture has been
given respsonsibility are very
great indeed.
I

assure

all the sound

marshalled
lems

Must

must1

assistance

working

build

strong

which

Interest

type

the

want

should

the

Prices

kind

Maturities

Coupons

»t

■'

\ ield

Yields

Maturities

help

programs.

wait

Price

Coupons

Price

1.30%

1961

23/4%

2.20%

1969

2.85%

1955

1.45

1962

23/4

2.30

1970

2.90

1956

1.60

1963

23/4

2.40

1971

2.95

1964
4

1.80

23/4

2.50

1957

1972-76

100

2.60
1977-78

3.05

1958

2.00

1966

1959

2.10

1967

23/4

100

appointed to

1960

2.15

1968

23/4

2.80

Yields

Maturities

4!%'•

1965

build
the
what they

say,

Coupons

are

Again, I

2.70
(price)

(price)

1979-80

3.10

1981-83

3.15

group or to otherwise

consulted.

making

Houston.

1954

guilty of hand¬

tell

and

done.

advisory

$215,000 due each April 10, 1957-83, inclusive.

at your command.

■

■'p $175,000 due April 10, 1956;

"grass

programs

—

ready-made

Do not

$510,000 due each April 10, 1954-55, inclusive;

Let's

service organiza¬

never

programs

■

payable in New York City

with

to help—not dictate.

are

Citizens

"►

therein, within the limits prescribed by law.

great United States Department of

down

Exempt from Federal Income Taxes under Existing Statutes and Decisions

and

them.

from

—

farmers

We will

MATURITIES, COUPONS AND YIELDS OR PRICE

built

farmers

with

the

Agriculture is

ing

;

These Bonds, issued for school purposes, in the opinion of counsel named below are
general obligations of Houston Independent
School District, payable both principal and interest from ad valorem taxes which
may be levied upon all the taxable property

that will not bring serious regrets
and disappointments later.- The

tion. We

10, 1953. Principal and semi-annual interest (April 10 and October 10)
Coupon Bonds in denomination of $1,000.

Assist

those

—

can

meeting the prob¬

Farmers

roots"

■!

us.

Programs
the

that

counsel

facing

-'.4 t

the Secretary does

you

and will continue to welcome

now

at your command.

are

The

■

all citizens?

and

you

4%, 23A% and 3% Bonds

can

Independent School District, Texas

What do

'you and other farmers and indus¬

try leaders want

Join

activities

the

your

(Accrued interest to be added)

policy¬
farm

industrial organizations, and
through them become a construc¬

and

tive

force

helping guide
development of

agricultural
great
of

country.

Debate

g o v e r il mental

forums

Institute.

the

Farm

The National City

Work

nity

Stations.

Promote

discussions

activities.

All

and

these

safely

citizenship
solidly

forward.

words, we want each com¬
modity group to help develop a
program it can make work with
our

help.

We know that
of the

blessings of
cannot

Merrill Lynch, Pierce,

Fenner & Beane

Schoellkopf, Hutton & Pomeroy, Inc.

A. G. Becker & Co.
Incorporated

Harris, Hall & Company

are

Trust Company of Georgia

Underwood, Neuhaus & Co.

First Southwest Company

(Incorporated)

without

earnestly

Andrews & Wells, Inc.

Weeden & Co.

Robert Winthrop & Co.

Provident Savings Bank & Trust Company

Incorporated

Commerce Trust
Kansas

industry and the

kind Providence, we

succeed.

Cincinnati

Company

Lyons & Shafto

Stern Brothers & Co.

Incorporated

City, Mo.

William Blair & Company

Dittmar & Company

King, Quirk & Co.

Shearson, Hammill & Co.

Incorporated

Fridley & Hess

Sills, Fairman & Harris
Incorporated

seeking both.

Wood, Gundy & Co., Inc.

Basis of American Strength

America must be kept strong if
she is to preserve herself and pro¬
effective
world
leadership.

Breed & Harrison,

vide

This strength must come not alone
from

armaments

might.

Her

Savings Bank

other

the help

Harris Trust and

build

ground up— and insure
dependable judgments on which
can

Drexel & Co.

Bank of New York

commu¬

from the

offered, Subject to prior sale before or after appearance of this advertisement, for delivery when, as and if
and subject to the approval of legality by Messrs. IVood, King & 'Dawson, Attorneys, New York City.

issues

closely with your
agricultural colleges and Experi¬

ment

are

issued and received by us

our

policies

National

The above Bonds

and

military

strength

must

March

4, 1953.

Inc.

Folger, Nolan Incorporated
Barret, Fitch, North & Co.

Cook & Quintan

The Weil, Roth & Irving Co.

Ed¬

Louis

Company*

partner

Co., passed

for

representatives

Mr.

St.

David S. Hendrick
—

grams, 41

Uhlmann & Latcharge of the mutual fund!,

(Special to The Financial

ST.

wards

FRANCISCO,

Louise

with

associated

Uhlmann & Benjamin

Mang. Inv. Programs

staff of

become

Sherman Edwards Witfc

the

not heart.

(JSpecial

Chronicle)

department.

people.

failures—and he will record

SAN

Financial

CITY, Mo.—Eldon R.

formerly with

great reservoir of creative energy
which is to be found in
every free
man. And let him write that our

this

has

shaw in

write, in record¬
stewardship, that our suc¬

came

With

The

Arthur Fels Bond & Mortgage Co.,
1004 Grand Avenue. Mr. Bell was

the historian will

ing

conduct ourselves that

us so

necessary

realize

Bell

responsi¬

great and all-important objective.
.

(Special

KANSAS

insecure.

kind Providence give

vision
do

such

Fels Bond i Mlg. Go.

intelli¬

gence,- and in the spirit of men who
value ' the. attributes of freedom
and who recognize the

initiative, dis¬

obedience

Without

future

sustaining

come

government? The supreme test

of .any

sustenance.

planned

nation

law.

with

for

spiritual values—great Christian
principles embodied in the Gospel.

God-given
V

.....

them

approach

com¬

State

and

accomplishment of

the

can

Eldon Bell Joins

Great decisions lie ahead of us.
Let us not shrink from them. Let

bilities that go with it. I have
tremendous faith in the soundness

man

This nation has been built upon

government,

in our homes, in our factories and
shops, and on the farms.

upon

any

industry, destroys char¬
acter, and demoralizes the people.

this

What of the relationship of man

courages

slightest weaken this

believe

mandate.

doubtful

economy

advocate

ever

con¬

favor in the halls of

politically free who depends
pletely

act of mine

must

guarded
as
something
precious than life itself. It

for

our

tinually

perform

Constitution.

program I

nation

depart-

our

broad

farm

^leadership

the

way.

there

God that

pray

will

much milk and butter—
and come up with sound answers.

criti¬

ahead.

years

the

nation.

debate such questions here in the

duces

the

keep America

other

course

the

Freedom is a God-given, eternal
principle, vouchsafed to us under

Heaven

land.

another nation. It

mission

America

cal

strong
—strong economically, socially,
and above all, spiritually. There

the

would study and

you

this

strong

is my firm

great and glorious nation with

lenge is to

best

—a

liberty-loving people everywhere.
Therefore, our first great chal-

that the Government has bought?

ifow

people.

establish

is not just

questions.

rale, and well-being of the peo¬
ple?" We need—the world needs

spirit,

part of my religious faith. To

expire the

end of March. It poses some tough

God

founding fathers and

Constitution

be made.

soon

price supports

integrity, moral

I love this nation. It

dairy industry made recommenda¬

'Butter

•

the

courage,
independence
and spirituality of her

this

the

measured

basis.

Kaiser & Co.

Harold E. Wood & Company

away

The Commercial and-Financial Chronicle:..

(1000)

Gross

•

Company—Reprints of an article in"Iron Age"—Bond,
Street, New York 5, N. Y.

-Richman & Co., 37 Wall

Imperial Oil Limited

Dealer-Broker Investment

aend intereated

Williston, Bruce
N. Y.
Lockheed Aircraft Corporation — Review—John H. Lewis &
Co., 63 Wall Street, New York 5, N. Y.
Service Co.

Banks

Comparative analysis of representative

—

Broad

Banks—Paine,

22-—
Y.
Stocks—Comparative figures—Geyer & Co. Incor-

Riverside Cement Co.

Troster, Singer & Co., 74 Trinity Place, New York 6, N.
•

Guide—Monthly bulletin—Sutro Bros. & Co., 120

Company, Norfplk

Broadway, New York 5, N. Y.
Japanese Bonds—List of bonds and coupon
S, Dollars—Hartley

York

Rogers

Walnut Street, Philadelphia* 3, Pa;

Stocks—Ten-year survey of 17 stocks-

Over-the-Counter Index—Folder showing an

York

market

and

National

Quotation

performance over a 13-year period—
Bureau, Inc., 46 Front Street, New

York Corporation
Beaver Street,

Professional Man & His

—

New York dinner at the

1952 annual report—

Allegheny Ludlum Steel Corporation, 2020 Oliver Building,

Pittsburgh 22, Pa.
Allied Chemical & Dye Corporation
Chemical
N. Y.

■

Dye
''

American

Encaustic

American

Tiling

Company,

Bruns, Nordeman & Co., 60

Goods

Our

Mr.

Douglas

tered in the

Audio Devices, Inc.—Analysis—Peter. Morgan & Co., 31 Nassau

June 5, 1953

Baltimore Transit Company—Analysis—J. V. Manganaro Co*
50 Brpad Street, New York 4, N. Y.

ing Index.

try Club.

with

For example, the 34

Co.

Production,

average

Co.—Analysis—HiU Richards & Co., 621 South
Spring Street, Los Angeles 14, Calif. Also available are an;! alyses of Hotels Sutler Company, Inc., and the Natural Gas
: t
Industry.

who

was

case

Broad

Molybdenum—Analysis—Eastman*

Dillon & Co., 15
Street, New York 5, N. Y. Also available are analyses

of Illinois Terminal Railroads, Maine Central

Missouri, Kansas & Texas, New York, Chicago & St. Louis,
Southern Pacific Co., and TecUmseKProducts
Company.
<•.

;

The

yond the

Railroad Co.,

National Security Traders Asso¬

Farm

en¬

ciation 20th Annual Convention;

Oct 14-16

Average and the Federal

Income,

and. Cost

ing.

Commercial Credit Company

mercial Credit

—

Detailed annual report—Com¬

'J- (Holly wood, Fia.)
Investment Bankers Association
of Americd. Annual Convention at
the Hollywood Beach Hotel.

(This writor,

the wumek;'

of champagne for the best off-hand guesses.)

■

* ['

Dunningcolor Corp.—Special report—Leason & Co., Incorpo'i rated, 39 South La Salle
Street, Chicago 3,111.
Products

Company-i-Analysis-^Hirsch

Street, New York 4, N

Brown & Bigeiow.

Electric Bond &
;

„

Y.;

Co., 25 Broad

Also available is

■

bulletin

-V

Share—Memorandum-^-Joseplithal

& Co.,

scope

Forecasting Difficulties

of this article.

;

Field Day Jung 5th

abortive forecasting results

for

reasons

are

be-

The

will

But the varying performances

only 3.7%. ' •' •>*,'Vr"V

And expectations of

'ent iridustnesr-

Ekco

; <
many

revealed

markfd divergence between; the .differ-

earriihgs chahges; .with

some up

artd others dowri,

in 'analysts'literature coming to hahd,

other basic obstacle in the way

reveals

an¬

;

market.

■

;

•

with

■.;

Experienced Corporate Trader

:" '
-'■ - •
■
-1,*' i .-An excellent opportunity is offered to the right young main,
with Wall Street security
to

settle

the

South.

become head of the
a

trading experience, who would like
This

Members: N.

Security Dealers Association

Trinity Place, New York 6, N. Y.

man,

short time, should

trading department in the main, off ice of.

Well established investment firm which maintains office* ia.

leading financial centers.

WiA Cantor, Fitzgerald

(Special to tps Financial Chronicle)

State

complete

history,

Pension- and Profit Sharing Plans.

including

Cantor; Fitzgerald- &
Co., Inc.; 224 North Canon Drivel
was previously with Fairman
& Co., and Gross, Rogers & Co.

He
'

Troster, Singer & Co.

associated

become

Eustis & Co.,

ated 4 with

for

Copters"

.BEVERLY HILLS, Calif —MUton R. Aronson has become affili¬

On the Press—

for the

Geo;

■

ously With Prcscott & Co.

ortunity in

out

Tractibii
Building, members of the>Cincin^
Matt j ■ and ' - Midwest Stock ? Exjchanges. Mr. Martin was; previ¬

Fiduciary Management, Inc;^Reportr-Eisele & King. Libaire.
Stout & Co., 50 Broadway, New York
4, N. Y.

"Watch

Jdris Geo. Eustis

Martinhas

Highlights No. 22

• ,-;V

(Special to The Financial Chronicle)

120

Broadway, New York 5f N. Y

field day

Hollow.

CINCINNATI, Ohio—James

of forecasting an average of "the"

..."

•

New York

annual

June 5th at Sleepy

■:

Bond Club of

hold their

major difficulty'namely, divergent behavior of separate cate¬

stocks

Average advanced 6.6%, the Railroad 28%, the Utility 7%, the
"Times" 50-stock Average 9.4 %', and the 'Tribune" Average of 106

Company, Baltimore, Md.

-..

Nov. 29-Dee. 4, 1953

gories of issues. .Within the past 12 months the D. J. Industrial;

Columbia Gas System -4 Memorandum—Herzfeld &
Stern, 30
j Broad Street, New York 4, N. Y.

Liv¬

at almost 20% > 23 of the 34 contestants

error

(Louisville, Ky.)

Association of Stock Exchange
Firms Board of Governors Meet¬

between the different averages indicated - above gives the clue to.
one

at the

particularly active at the time debunking forecasting'

;

j 36 Wall Street, New York 5, N. Y.

(Cincinnati,, Ohio)

of Cincinnati annual party
Kenwood Country Club.

Central Railroad of New Jersey—Memorandum—Bache &
Co.,
Climax

Sept 14.1953 (Son Valler. Idsha)

financial writers

possibilities, found himself ^extremely embarrassed

Municipal Bond Dealers Group

firm's

hash of predicting the high

than 20 points wrong .on the D. J. low.

were more

Cannon Mills

June 25-26,1953

writers put down a figure ranging from 230 all. the way up to 325,

Street,

(New York City)

Field Day at Sleepy Hollow Coun¬

Whereas the D. J. top was 225;; all hut: five of .the

similar contest staged in the past by Arthur

"derby" l947-'48 made

Board

Reserve

meeting
-

Bond Club of New York Annual

Contest Consistent

and the low of the Dow Jones Industrial

•

Spring

Pidgeon,

the Eastman, Dillon & Co. contest is

America

the Greenbrier Hotel.

while its municipal specialist finished next to the

Wiesenberger

Corp.—Memorandum—Shearson, HamNew York 5, N. Y.

Buda Company—Analysis—H. Hentz & Co., 60 Beaver
<
New York 4, N. Y.

Exchange

Investment Bankers Association
of

•

predicted by the

almost exactly

was

dreary report

susbtantiated

mill & Co., 14 Wall Street,

Street, New York 5, N. Y.

of Stock

Firms Board of Governors Meet-

Previous Champagne

Inc., Lansdale, Pa.

Co., 120 South La Salle Street, Chicago 3, 111.
Dry

Waidorf-

Association

- •

Inc.—Annual Report—

Amurex Oil Development Co.—Memorandum—A. G. Becker &

Associated

May 11-13,1953 (St Louis, Mod

worst of all the contestants.

Encaustic Tiling Company,

c a

May 13-16, 1953 (White Sulphur
Springs, W. Va.)

winner,

figure

sales manager,

Corporation, 61 Broadway, New York 6,
.
:
'
;, ;
\
.

The

decline.

Annual Report—Allied

—

m e r

Astoria. \

who called
the market's "turn" by almost the exact decimal point, is a tex¬
tile expert; and of the analysts, the railroad prediction contest
was won by a utilities
specialist, Mr. Harold Young. The winner
among the municipal bond prognosticaters was a writer com¬
pletely out of that field, while the leading specialist in the edi¬
torial field predicted an advance instead of the ensuing sizable

•

—

the

Furthermore,

Money—Sidney Scott Ross—Sidney S.

♦

Security Traders Association of

Allegheny Ludlum Steel Corporation

Bulletin

—

(New York Clty)

May 8, 1953

Observations....

Company, 3070 Hull Avenue, New York 67, N. Y.
*

•

k: /

Association

ing.

South

Incorporated, ,123

banks—Stroud & Company,
Broad Street, Philadelphia 9, Pa.

phia

Ross

1 v

New York 4, N. Y.

Continued from page

Philadelphia Bank Stocks—Comparison of 11 largest Philadel■?

"
_

■

Spring Meeting a4 the Plaza HoteL

4, New York.

•

TegM Group Investment Bank¬
ers

Straus, 50 Broad Street, New York 4, N. Y.

up-to-date com-

Jones Averages and

yield

Corporation

Concrete

Vacuum

parison between the listed industrial stocks used in the Dowthe 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

;

May 7-8,1953 (Sub Antonio, Tex;)
•

Dealers

Municipal

South Coast Corporation'^ Atialysis^—Boenning & Co., -1606

Laird, Bissell & Meeds; 120 Broadway, New York 5, N. Y.

annual

Group annual outing.

1952 annual report

fChicago 4; II4;

Louis

SL-

' Jacksbn Boulevard,-

•

5, N. Y.

New York City Bank

list of issues

inc.—Bulletin—Daniel F. Rice & Co., 141 West *

Slick Airways

strips payable in

120 Broadway, New

& Co.,

sixth

Societies

ford Hotel.

Secretary, Seaboard Air Line Railroad/-,

—rW. F. Cummings,

National Federation of Financial

April 38-May 1, 1953
(St. Louis, Mo.)

;

and

—

convention at the Belle vue-Strat-

Air Line Railroad Company

April 12-15, 1953 (Phila., Pa.)
Analysts

Analysis and review of the Cement

—

the King Edward Hotel.

industry—Lerner & Co., 10 Post Office Square, Boston 9,
/ Mass.IV/,. V
'
• ;?v'
.
" :
..
Seaboard

porated, 63 Wall Street, New York 5, N. Y.

Investment

Canadian Pacific,

Company,

offering interesting potentialities.

Helicopters—Watch out for the Copters"—Highlights No.
Insurance

Ltd.—Bulletin—Capper

Co., 25 Broad Street, New York 4, N. Y.

Railroad

Bankers Trust Company of New York.

tion Twentieth Annual Dinner at

Pennsylvania Railroad—Data hi current issue of "Gleanings"
—Francis I. du Pont ic Co., 1 Wall Street, New York 5, N. Y.
Also in the same issue is a discussion of Baltimore & Ohio

Webber, Jackson
Curtis, 25
Street, New York 4, N. Y. Also available is a bulletin

California

Canada)

Toronto Bond Traders Associa¬

—

Pat© Consolidated Gold Dredging C#^

CF-8, Kidder, Peabody & Co., 10 East 45th Street, New York
17, N. Y. Also available is a booklet discussing how Mutual
Funds Make Small Living Trusts Feasible.
California

March 6,1953 (Toronto,

Analysis—Ira Haupt Ac Co., Ill
Broadway, New York 6, N. Y.

general business outlook—Dept.

Investment Field

115 Broadway, New York 6,

& Co.,

Maine Public
Business Situation—Study of

EVENTS

Railroad—Analysis—Dreyfus &

Harvester Co.—Bulletin—J. R.

International

will be pleaaed
parties the following literature:

understood that the firma mentioned

Montreal, Que., Canada.

New York 4, N. Y.

Co. 50 Broadway,

Recommendations & Literature

CO Ml N G

Analysis—L.S. Jackson & Company,

Great Northern

International

It ia

—

Ltd:, 132 St. James Street, West,

Thursday, March 5,1953

education and; business

With

Military Inv. Service

(Special .to The Financial Chronicle)

BIRMINGHAM, Ala.
H. Jason

Walter

associated with

now

Military
Et.

—

Investment
Gaines, Ga.

Service

Joins Fabian Staff
(Special to The Financial Chronicle)

Write Box G35,

BEVERLY HILLS, Calif.—Oscar

Commercial & Financial Chronicle, 25 Park Place, New-York 7.

A. Torode is now with Fabian &

experience.

Inquiries treated in confidence.

Company,

Santa

9500

Boulevard.....

•

Monica
0»i win

i-ninimi*

Volume 177

Number 5200..

The Commercial and Financial Chronicle

(looi)
drop thereafter.

Need Farmers Fear

Depression?

By J. K. GALBRAITH*

Department of Economics, Harvard University

favorable
sion

profits in

basis

let

no great depresStresses current impact of

and

drastic slump in

"abnormally high"
There

was

'twenties
could

day

when

think

talent, not
large, to

es¬

timate

the

things

economist

had

some

to tne public at

given

shape

the

all

economist

unwise

put
his

lost

these

all

the

bellboy and

the

was

Then There

'thirties

the

were

and,
anu, iu
in somewhat
sumewudi similar
M.maaw—,
fashion,

25% of

spending in the

econ-

omy.

enough to have shared

the

surely

believe

somehow,

that,

had learned to shape our eco¬

high

$49

billion

amounted

military budget

Of this total,

big

for

its

sake.

own

spending continues

at these levels—while government

provides

for

market

and

prices.
But it
We would be foolish

million

roughly

minimize the powerful bolstering

and

World

War

easy

hut rather unwise to

that this kind of boom

goods

that

rapidly

will

indefinitely.

unf,Prtain

morp

rowed

make
™nph

being

funds

+hic

done

Mv colleague

that

have

with

recently

been

adding

lion

year.

wondered

if this

cumulation

has

rate

sound—or

decline in export de-

First the

war,

and

then the need to supplement the
depleted production of the farrps
of Europe and Asia, have led to
record
exports.
We have been

borPro

providing

other

countries

the

$30 bilproperly

wherewithal to buy these exports.
Here, unless war intervenes, we
"
....
.
.
may be coming to the end of pn
area. Both the need for our farm
products and the means to buy

debt

them

have
their

likely to be re¬
During the
current crop year the value
of
agricultural exports will be down

ac¬

can

are

than

duced

kept up.
the civilian market growing
A falling off in investment
rapidly as our capacity to sup¬
on
iu
coupled with a general effort
to
ply it.
The critical factor here,
stabilize or reduce debt
would
unless I am
mistaken, is not con— ««««
sumer
spending but the rate of
a. sf10fus
oir capital

ing

of our farms.

private

debt at the rate of about

any-

for the food and fiber production

go on

matters

that

mand. For a decade now we have
had a heavy demand from abroad

re-

before

as ever

shall

ability of

II.

assume

can

assume

ity that we might have some decline in domestic demand must be
added the somewhat higher prob-

year—

means that even with large individuals and corporations

civilian

are

economists and

while
will last forever. To the possibil-

a?
ss.'M?®.'"
cently pointed

military outlays, if they do not
increase, we will have a supply

habit, both

citizens,

rise.

investment.

that,

out

hazard

incomes

the
at

all-time

high,

effecj
^Lt
lndllStriPS
llkp
YYIICdl exporS will
Will be off by ab?ut
and machfne ton! one-third; in December the BAD

^
0OOdS

by about one-fifth as compared
with last year—when to be s'u^e

lnOUStriPS

guess

present

UC UU WJ

guessed that cotton exports might
be down by a fifth.

tures

that

this and explain

what should

the

maintain

employment

can decide not
that the present volume of expen- throughout the economy.
refrigerators and auto- ditures for new construction
I have spoken of this problem
some
of the mistakes
in their
mobiles
and
houses.
A
price residential and commercial
and of business
investment at some
farm policies — mistakes of ill-,
squeeze in agriculture can bring for
new
industrial
and
length
for—although it may seem
plant
a
planning
with
the
general postponement of pur- eauipment will be maintained in- to be a long way from agriculture conceived
chases of farm equipment. There
definitely.
'
'
' —it is something to watch.
The farmer as victim. In the case of
can be important shortrun changes
present high rate of business in- wheat, the big Canadian crop last
in
We Have an Investment Boom
the decisions of businessmen
vestment is adding to our wealth
year was a factor.
But in part,
to accumulate
or
divest them¬
The plain fact of the matter is and it is a mark of the vigor of
to use a famous phrase, we planselves
of
inventories.
Over
a
that we are now in the middle of our economy. But it is also establittle longer period we can have a
substantial
investment
boom, lishing a pace which may be very
Continued on page 39
large shifts in investment decisions by businessmen — a very
important possibility in our pres¬

appear
_

before

keep

optimist, he could also hope
equally wise
Washington would fol-

that other and almost

low the

policies that he prescribed
they would have the

that

and

beneficient
saw.

that

shape

which

nomic

effect which

fore¬

believed, in other words,
had become possible to

our

think

economic destiny.
I
exaggerated the extent

ruled

were

matters

eco¬

wisdom

(and

taxation, public economy or
expenditure and the rate of in¬
by

fact

buy

expendi-

these

There

counts.

that

situation

ent

have

they

sire

not
also

fixed and

about

which

levels, American

consumers

continue to maintain
rate
op

l0ss

would

fairly high

spending more
indefinitely. I am less sure
consumer

changes
changes

can

mand is fixed for the

The

referred

large

our

can

tell

military budget is going

to be and how grave our
commitments
whether

how

promise

there

will

military
to be,
bigger

These have become the con-

tempted to

say

that for the

•'

Federal

Council.

doubt

that

would be able to speak

is difficult

foresee any

for

could

persuade

audience that he knew
was

his
than

disposed to say.

slump in the

ward

least

—77—
'An

address

Dr.

if I
...

Galbraith

can
t

before

the National Farm Institute, Des Moines,
Iowa, Feb. 28, 1953.

some

solicitation of any offer to

buy securities.

and

the

business

the

Company.

•

per

Share)

Price $17.00 Per Share

may

be obtained within

any

State

regularly distribute it within such State.

Goldman, Sachs & Co.

longer-run in-

influence in
And

down-

then I want

factors

relative

Bly th & Co., Inc.

specifically

The First Boston Corporation

Lehman Brothers

decline

Union Securities

the

Kidder, Peabody& Co.

Stone & Webster Securities Corporation

this

expenditure
j

will

u-ii^

peak Of around $60 bllllOn

next year with the prospect of

Corporation

A. G. Becker & Co.
Incorporated

According to present
*

of the Prospectus

whole,

agriculture.
There is.
the possibility that
sounding will show at

ahead.

schedules

reach

a copy

Underwriter who

all,

military
years

Upon request,
from any

general sort which

some

affecting
first

see

direction.

cite

Now having written off my profession as largely helpless in this
me

nor

may exert an

The Impact of Defense Spending

of Mars, let

economy as a

take

attention

reduction

of the Prospectus, which describes the securities

(Par Value $5

fluences of

"heyday,

this

March

5, 1953.

results

improving competitive
position of other countries. Ar¬
gentina and Australia are undoing

Common Stock

immediate drastic

3iaps.

economists did in our

the

longer view, however, things may well be different,
I want especially to draw your

as we

Part

from

scarcely expect any drastic slump,

with any
genuine perception than the
economist of 15 years ago. But he
would probably have that same
fine air of authority. And permore

here

repercussions

Paper Board Company, Inc.

We may have painful readjustments. Agriculture, even during
the next crop year, may prove to

aging. But it

National Se-

member of the

means

•'

future, with the prospect of military demand what it is, we can

employment

200,000 Shares

near

trolling issues, not alone in our
lives, but in the economy. The
proper speaker this evening would
•curity

coiastruca fall in

have already been let or for

particularly vulnerable. What
has been happening to butter and
beef prices—and the more general
cost/price saueeze—is not encour-

war.

And

serious

offer to sell

below

futui'e.

near

who

offering is made only by

Much of the money that will be
spent next year is for contracts

if, today, we can be un- commitments that have already
serious illusion as to the been made.
insights of the economist. Perhaps
Forecasting is a hazardous ocI am the last of the breed that cupation—I, years
ago, resolved
you will think it worthwhile to
to abandon it in favor of a more
invite to your sessions.
secure way of life.
Yet I am

man

and
have

like.

But, some major and
blessed alteration in the prospect
for peace apart, government de-

I doubt

the

output
would

This announcement is neither

in turn bring
the economic

der any

Today the man who can project
incomes and prices into the future

^anufacJ;ur®>
tion, and the

will

word to say in a moment.

These

that

one.

—

sharp

bave shared in that

outlays.

—

outlook.

years

size

new

the extent to which
our prices and wages and
profits
were, in fact, controlled by events
beyond control. Again, however,
it was a pleasant illusion.
I am
glad that I was old enough to
these

such

inflexible. Families

terest) and that we minimized in

age

incould

men

output,

the

prices stable and .keep
interest rates in line.
And, were

thing that lasts for quite

did not build during the

vestment

that

demand;

Qne of these days we might find
ourselves catching up; it would be

put.of the economy
to; I960iwhen,
it has estimated, total production
a

our

unexpectedly

houses—currently
over

depression

product of $345 billion. The National Planning Association has

will be $425 billion.

which

total gross national

consumer

building
rate

the familiar problem of keep-

recession

that

invest¬

therewith

feeling that

uneasy

and

economy

long

and

—

alone

be done

Happen

effect

The

destiny.

could

have

come

could.

predicting

slump

happen.

plant and equipment abreast of
requirements of a semi-war

who could wish for such govern¬

spending

••

the

history.

ment

compared

not

ment

Could

repeat once

put

economist
an audience

nomic

and

man

n.r.

construction

must

alive

the last years of the 'forties when, one-quarter of everything that the
onrttUflf
lllliomn
rill<=»H
Thpn
WP
another
illusion
ruled.
Then
we
economy produces — we cannot
we

under

to 14.2%

growing

There

But so

came

just

count for between 20 and

shirt

not old

consequence

Sestible magnitudes of the moment. Let me illustrate. National
security expenditures last year of

W7f)^ariHMuin^hu iinn^^hta1
™s
This will ac-

Galbraith

it.

Let

with $4.9 billion in 1939.

Economy

The failure

which

Depression

general

recently projected the gross out-

coming fiscal year•
costs together will

$7U and $80 billion.
K.

pleasant illu¬
sion while it lasted.
I am glad I

was

ca led the

sure

spending at the rate of $23.4 billion

the

it,

as a
live possibility,
spell real trouble.

were

out

mon¬

Still it

What will be

maintain.

down

——-™"

with

along
maid.

account for all but about 17% of
the total Federal budget. The total

the line,

his

But

1939—when

maintain

only about half as
high—was $4.6 billion. During the
last quarter of
1952
we
were

to and digesting government outlays even in the apparently indi-

own

tirst

some

ey on

.J^lg

Durmg[the

The

been

the military budg-

bear upon us from past wars.

himself, if lie
had

^J1

at the

economy

hard

rule out the possibiiity.
that, this
investment
is
abnormally
Now a word about agriculture
as the economy continues to
grow, high even in relation to the
high specifically. There are also some
military
and
total
government rate of
production in the economy, special problems and special danspending will become a small and Manufacturers are
bringing their gers which face our industry. It is

fightmg and the war we so devoutly hope we will not have to
fight, but also the costs that still

great crash of
1 9 2 9.

prices

moment, that

for

ment

consequence!

Ine

military budget, covermg not alone the outlays of the
Pentagon for the war we are now

be sure, sadly
shaken by the

the

decisions

our

present time
*

for

assume,

Af
Impact of
Growth

Sees

influence

extended

That il¬

come.

lusion was,

the

wealth.

our

taken
think

salvage something from the ruin,
y, smaller part of total demand,
As I have just said, the dominant We will find ourselves growing up
AT.

the

that

back

farm prices is in sight.

investment adding to

new

what

this schedule holds.

heavy defense spending, which is likely to continue, and states,
though there may be painful readjustment, no major depres¬
sion

decisions

by the Soviet leaders will be.

future, there will be

near

Nineteen Thirties.

in the

and

ers

Dr. Galbraith, in discussing probability of major depression,
contends that though farmers can expect lower prices and less
*

There is no cer- During the last quarter of last
expenditures will behave, year, new investment in plant and
this way. "What happens to miiiequipment by American industry
tary spending will depend on de- was at an annual rate of about
$27
cisions taken by the Soviet lead- billion. The
corresponding invest-

tainty

The Commercial and Financial Chronicle

(1002)

telecasting outran the sponsor's

budget.

Subscription Television—Hope

Vice-President, Zenith

Ratlioj Corporation

Want to talk about

wiost

significant,

habit-jarring
Has

come

that

developments

All

sub¬

vision.
.

want

And

strong, continu¬

local. service and bringing
first class presentations
of net¬

terms

work

programs
even

could
That
have

stations

order

see

dependably.
...

included

within

the

blanketed

regions

the fact that he used most of the confer-

enee

to discuss prepared

Carlisle Bargeron

subjects and did not

;

vision.•

programs

However, his happiness was short¬
Grumbling broke out in the press corps

over

give the correspondents time to ask questions. Some of the correspondents even aired their dissatisfaction over radio and tele' "
7 •
7So at the second conference the President threw himself open

low-powered local
are
theoretically

that

off.

went

lived.

why the major networks
in their. service,

hundreds

buys television re¬

under conditions
stations

heard

meeting with the Washington

after his inauguration turned out not to
be unpleasant in the slightest.
He was repre¬
sented as being tickled pink over the way it

clear channel

not

The

ceivers

But his first

press

ing

when

with considerable mis¬

conference

taboo after he received the nomination.

truly

hundreds of small stations render¬

industry than any de¬
on the horizon today.
The reason is fundamental.
public

that made our radio
national was the

One thing
market

velopment
,

smaller

the

what

markets?

facturing

talk

how

recognize

viewers this will
TV in the established

But

better

had

them

He nad had experiences in tne cam¬
paign different from any he had ever had as
wartime European commander or later as head
of NATO.
He then controlled the questions.
At the outset of his pre-convention Presi¬
dential campaign he was subjected to such
rude, brutal and meaningless questions at
press conferences that they became virtually

bring

grumbling

still

are

toward

givings.

can

attitude

There is not the slightest doubt that the

his first press

held

President

arm-,

markets.

•

scription tele-,

many

laboratory.

about

who

newspapermen

Eisenhower's

take stock of themselves.

home,

seen

Washington

President

about

which the

available

made

programs

nature

never

Those

chair audiences.

electronic

can

ing demand for television, more
\ to expand television to a nation¬
I want to wide audience,
more
to under¬
talk to you write the future of the set manu¬

out

insure

has

public

Phonevision—can

vision—and

educational

establishment of subscription tele¬

of the most

one

other fine

certainly

of the

one

of the News

By CARLISLE BARGERON

coming generations have not seen,
the best in spectator sports, and

phonevision. Citse development
of the TV theatre as enabling audiences of small town trans¬
mitters to enjoy quality programs and estimates, because of
high cost of TV, upwards of 20 million Americans now have
no TV service.
Holds healthy competition between all types
of programs would raise level of both pay-as-you-see-it and
sponsored television, and would be an assist to television as
advertising medium.

Ahead

celluloid classics that our up and

Bonfig, in pointing out inability of local and small town
television transmitters to sustain themselves, proposes institu¬

subscription television

plays,

well as the

the fine new films as

Washington

TV. And

Broadway

more—the

even

From

events

great

those

be restored to home

can

Mr.

tion of

subscription TV and

with

But

Phonevision,

Of Small Town TV Stations
By II. C. BONFIG*

Thursday, March 5, 1953

...

•

what this

rev¬

olutionary de-.
velopment
the

means

public, the
ad ver'tising
profession and
television

the

industry itself:
H. C. Bonfig

For there is
^

doubt

mind that subscription tele¬
vision
has amazing benefits to
<offer to set-owners, to manufac¬
turers of those sets, .to broad¬
my

casters
Who

use

their

and
TV

'advertisers

those

to
as a

products.

the

#in

available,

programs

there

audience

the

greater

in ou£.,o;j&xerience at

tions

television

for

the

Since

receivers.

Communica¬

Federal

Commission

tions

announced

the

the years-old deep
freeze limiting
the construction
of TV transmitters, hundreds of
melting

new

applications have poured in.

The

establishment

station

means

for

advertiser's

each

new

range

There

have found that, the techiriical

film,

clung

want television

dynamic,

even more

operating profitably, giving good
service
to
the
community and

from top to bottom.

surprising

the

radio

the

that

Not

-•

all1 than it has been and is today.

We have plenty of support for
that
premise—from advertisers,

sports
promoters, e d u c
broadcasters and the like.
'Even

time

beip.

has
■

•

lent,
.,

o rs,

programs

The rapid march of events has

demonstrated that the commercial

some

have

such

Mass.

the

choicest

taken

from

of-a handful of movie houses

abled

them
would

outbid

otherwise

•

the'

pre¬

Among these sales-stimulat¬

speculation,

past

Metropolitan

Opera, which vanished from ftdme

offer

163,102 Shares

Doug Allan TV and Film Productions,

inc.

Common Stock

(Par Value 50c

Share)

call

for Offering Circular

UNDERWRITER:

STUYVESANT F. MORRIS JR. & CO.
Members of

Nat'l Assoc. of Securities Dealers Inc.

40 EXCHANGE

PLACE,- NEW YORK 5, N. Y.

WHitehall 4-7290
February 25, 1953

studied effort: to belittle

were more

they serve any good purpose.'
Eisenhower has embarked upon the deliberate course of

restor ing

Congress

its place

one

the

three

coordinate

considers
this the wisest political:policy for"one Of his military background
or
whether he thinks it' is best 'for the country. that Congress

should be

thing.

costs

restored makes little difference. " It is

V-V V-

national

public- does

advertisers

able to buy more
125

will

break

•

President

"weekly* meetings the

President has made it known that he will receive
any member of
Congress wanting to see him aftd' this does-not mean He will see

not

not. be

through the iron" curtain that' inevitably cuts

off from the outside world.' Aside from" these

are

the broadcasting industry believe

than the top 100

markets for their, network:

them only in groups such ' as the luncheon "parties :Hie has been
giving. Under Eisenhower's set-up it is' doubtful if the coterie of
advisers around him .can keep a member "from :his ear.
' *
7
>
Be this all as it may it is doubtful, regardless bf, where the

...

broad¬ 7- fault lies, that there ever will spring .up; the warrnhess or intimacy
casters in the small cities will be *. between Eisenhower and the correspondents that existed in" the
As

result,

able to present network programs

•

Truman

and Roosevelt -Administrations.

Those statiorled perma-

nently at the White House don't .have the run of it

as they forout on trips there is none of the joking between the
accompanying
correspondents
and
the
President's
come
party as there
they would receive
was
formerly.
The correspondents who accompanied him to
these network shows would be the
*1
Korea,
for
example,
saw
him
only
a
few
times
on
the
whole trip.
sale
of
spot announcements,
One of them wrote he ivould be glad to get back to New York so
chiefly to local advertisers. But
he could see the General. On the trips tb Augusta, the correspond¬
there just isn't enough advertising
ents go in a separate plane and never see the President unless he
money in the small markets to
calls for them.
They live two miles aivay from the golf course
enable broadcasters to operate on
where the President lives. They aren't even allowed to play on it
this basis or even pay the line
or to get into the grounds unless they are sent for.
But there are
.charges, of bringing in-network
ample grounds for this aloofness on the President's part if that is

only

This

bonus basis.

that

means

the

;

in¬
from

only

programs.
caster

leaves * the
with

costs

the

his

far

advertisers
The

Write

public does

The

gramming

Price $1.00 per Share

was

eyes of the people; "under Trumati the
the result of the edekiness which He came to

branches of the government. ..Whether it is because he

the best economists in

know that

This
per

quite the custom' under - both VBoosevelt, and

were

Under Roosevelt there

that TV

not understand

programs.

the

,'7r-

understand.

not

championship

answers

that is very

one

and

you

TV two years ago beeause its cost

ing programs have been the best
fights

answers

In neither case did

assume;

evoked

legislative;'branch--in the

Mr.
.

have

th^t .would have induced
Slaps Reed,or- /'President Slams
Denunciationsof Congrefes as a*whole arid of individ¬

members

outbursts
;

•

probably

once a week to thrash out; policy.'"Aside Troriitheir being in on
small town; .? the formulation of policy and not having it juSt handed down
broadcasters. But the public does
from an ivory lower, it affords theSe leaders an: opportunity to

clear

enormous.

sponsdrs

have

Roosevelt^ and Truman,
as '^resident

Truman.
?■

,,; •.

would

headlines

McCarthy."
ual

questions

a very healthy
' 7V"7 C
•
-..V
•
The. reason for. this> reluctance ; -I'.w Congressional leaders tell hie that-one; of the most wholeto apply for television in small,
some things about the General is- his practice of having them in

en¬

sented thesfe events on'sponsored
TV.

three

All

from

have

channels

town markets is

of
been

year or two and the

*An address by Mr. Bonfig before the
Advertising
Club
of
Boston,
Boston,

stadium "and

regular TV and shown exclusively
at theatres. The large box office

who

hand to

•

Already

even- more

profitable to

offices

of'box

on?
;

V-

Although
TV
been allocated

purpose

Long of Louisiana, that the army should be overhauled
What answer was he expected to make to that
Still another, what he thought of Senator McCarthy and so

o^?

market

TV. '

only

Senator

•

theatre.

what did he think about Con¬

two, three, or four radio stations

firmly to the fact that all of

putting the budget in order first.
of the question was to get. him in a personal tilt
with the Chairman of the powerful House Ways and Means Com¬
mittee. Another question was if he agreed with the statement of

of the Phonevision

questions

The

has shown.

Nee&jFor Subscription TV

such

Union message that he favored

smaller cities have

our

tf> 88# cities, in
Unfortunately, this type of ex¬ these United States that
have,, a
Workings of" subscription televi¬ pansion cannot go on forever, and *>*Yi-mlrt+inn of 9-5 00A or. Jec7 tb^"^
sion are about as comprehensible there are two developments loom¬
have been applications : for A TV
es the Einstein theory, to some¬
ing on the horizon which more
grants in only 83 of these cities.
than ever indicate the-absolute
one with a knowledge of second
That means that in more than'800
ferade arithmetic. For that reason necessity to your business and cities that
enjoy splendid local
We have produced a short film mine of subscription TV.
i ctuio,
service mere is today ho
The first of these developments
Which explains subscription tele¬
indication that there wilt be iocai
vision and effectively diagrams applies to every TV market. That
television.
•
7
Zenith's Phonevision systems of development is theatre TV, aided
and abetted by the fact that home
metered TV.
TV Costs Are Enormous
In preparing this new, edition TV is a world's champion wrecker
we

were

Dan Reed's insistence that taxes should be reduced now
ahead of budget cutting.
The President said in his State of the

gressman

quite different.

strength

people

for

reason

TV's

ing for TV grants in urban areas,
but in smaller cities the story is.

contributing

and

message

questions at the outset. And the correspondents fully justified
apprehensions.
He complained privately later that they
seemed bent upon getting him in a fight with Congress and this is
certainly what they were trying to do.

V his

clear channel sta¬

Most of

market

greater

additional

another picture.

approximate of 50
to 100 miles. Applicants are fight¬

are

because

limited

and of course, the larger demand

i."
Zenith

There

advertisers

for

sales medium for to purchase television receivers.
■'
t
i.i

•

TV presents

the

better

and

their high-powered AM.

comfort

easy
The

homes.

markets

entire

can

broad¬

local

that most small

enjoy local TV serv¬

ice

of any kind is through the
establishment of subscription tele¬
vision so that these stations can
devote

part

what it is.

Standard Petroleum

drilling, acquisition, etc., and for
working capital.

Common Stock Offered

rated

their

broadcalf

.Charter

programs.
In a flood of letters zenith has
received from small town broad¬

one

outlining

expressed

this
well

Continued

Securities

Corp., of
New York City, are offering an
issue of 300,000 shares of common
stock

Corp.,

day to presenting pay-as-you-see shares

casters

The

pay.

way

meriy had;

pro¬

station

than

greater

can

only

small

problem of

Standard

at
are

per

offered

Petroleum

share.
as

There

specula¬

The net proceeds are to be. used

30; County,

1952, and
entered

chase

into

from

or
a

incorpo¬

was

Delaware

June

30,

about Nov. 17 it
contract

pur¬

Falls

City Producing
Co., the Working interest in some

800

acres

County,

located

Neb.

The

Richardson

oil

and

gas

leases in which the company has

tion.

situation, to acquire 13 producing wells, to
when he drill a test well in Red Willow
page

corporation
in

Nebraska,; acreage,

acquired

interests

cover

the

aggregate over 20,000 acres situ¬

ated in Nebraska,. Oklahoma;
for Wyoming and Colorado.
,

Volume 177

Number 5200 ...The Commercial and Financial
Chronicle

(1003)

Ta-<:

*♦

:i*

"vVH!

WMfflBM.

The Wonders of Tomorrow—at DuMont
Right

now,

DuMont Laboratories

are

producing cathode-ray tubes that

perform unbelievable wonders. Here are tubes that make it possible to
light 10,000,000 times
store

With the full

...

measure

Today!

time to 1/100,000,000th of a second

multiply
...

and recall 50,000 different facts!

possibilities of these amazing tubes yet unknown, science,

industry and defense look to the DuMont Research Laboratories for future
electronic marvels. Here, also, men

seeking

a career

realize their ambitions. For DuMont
progress

in electronics will best

permits

limit

in this great new field.

WINDOWS TO

At
the

this

TOMORROW

testing point, Du Mont scientists predict

capacities of

new

returned for further
commercial

are then
advanced to

tube marvels. They
improvement,

production.

The Commercial and Financial Chronicle...

(1004)

Video Vista ioi

'533

By IRA U. COBLEIGII
Author of

A current view of

and

possible profitability

among

Those security savants who are

giving
the

our

current

altitude

test,

Let's do a little
We start with 23 million

name.

viewing.

provided by sets now in the homes of America.
Radio
Corpo¬ Of these almost six million are

leadership

splashy

might

ration

1929

"knot-holes"

when

sold

smaller.

114%. They
perceive
the

optically

television

dustry picking

off

earlier

socially

and

about

5.6

million

producing at the
a year.
This
composite of output esti¬
were

rate of 10 million sets

that

year

would

mates

decade,

with listed TV

issues

are

1952 but for November and

December

left

out

turned

sets in

where

radio

12 inch screens or

expendable.
Replacing
is pretty sure-fire business.

them

—

These

about

5.9

mil¬

lions.

gaining

What will

keep this production
no party conven¬
1952—a show¬
tions, or a presidential election to
ing quite OUt- hop up 1953 sales. But Senator
Ira u. Cobieigh
distancing the Tobey is going to put a show on
general
ad¬ the road again, sports are still
vance
in
industrials.
And
they with us, new movies and educa¬
pause to
inquire whether Radio tional shows, built for TV, will
Corporation and such impressive
emerge in volume, and the Coro¬
mid-century running
mates
as nation will
surely be worked in,
Philco,
Motorola,
Admiral,
Du if only by film or kinetiscope. The
Mont, etc., may not, even at this great unfreezing of last April, al¬
juncture,
have
reached
their lowing the blue
print authoriza¬
(you'll
pardon
the
expression) tion of 2,000 stations, was indeed a
40%

zenith.

And

during

enthusiasm

and

There

up?

are

There

boon.

way

Mother

ling

while

homes are get¬
ones. In this

watch the wrest¬
Junior
gets
space-

can

There is thus

for 1953 than most industries you

stock market
remember the

two-set

pect

projection of
the set makers.

channels; plus

many

ting

happy with Captain Video.

"Expanding Your Income"

screens

tioned; and

reason

ex¬

falling off in set "sales.
The major questions relate more
to competition
and profitability.
Vivid memories of the golden year
any

1950 flash back.

lion

sets

About seven mil¬
sold

then, in the
post - Korea
scarcity
It was wonderful, but it
were

immediate

buying.
led

expansion of capacity so
that in 1951 overproduction set in,
competition
got
rugged,
prices
were
slashed and indigestible in¬
ventories mounted. By Spring of
1952, inventories were pretty well
worked off, and then the favorable
factors cited above, moved up de¬
mand
to
approximately current
levels.
But production has more
than kept pace, and by the end of
this year Zenith, Philco and Moto¬
rola

all

will

increased

have

1951

set production

capacity by at least
100%. So, even as in the earlier
days of radio, "dat ole debbil"
overproduction can louse up the

profit factor and drive the smaller
producers into either the banks, or
bankruptcy. The demand factor is
here, yes, but price cutting to
move
unwieldy
inventory
can
slash both profits and dividends—
so

certain

amount

investor

diligence here is requisite.
A stabilizer to
earning power
for many TV makers is found in

right now, 113
by stations
projecting their visual the extensive electronic produc¬
these speculative leaders should
beams. There may be 200 by the tion program, mostly for the mili¬
falter, might such hesitancy not year end. If so, a brand new mar¬ tary. Some companies have 50%
confirm the incipient bear market, ket for
roughly five million sets or more of their gross from this
so widely heralded alike
by ana¬ would be created. Then, too, 1952 source,- but profitwise it's
less
lysts and share-holding elevator witnessed the demise of restric¬ satisfactory. Government contracts
boys? I don't think so.
tions on consumer credit, so buy¬ have to be figured closely, are of¬
market

strength

are,

generated

powerful ten arrived at by competitive bids,
to have a better hold on sustained factor this year.
Replacement of and are subject to renegotiation.
business volume and profitability "knotholes" has already been men¬ So while this collateral electronics
manufacture keeps the factories
humming, it is a less substantial
source of dividend-bearing profits.
Perhaps it's time we looked at a
few actual examples. Radio
Corp.
has
already been mentioned. It's
This advertisement is not to be construed as ah offer to sell,
Fact

the

virtuosos

as a

seem

solicitation

ing

time

the

offer

The offering is made only

buy these securities.

by the Offering Circular.

number one1

radios

list

but

because it's so frequently
about, and because it has

written
the

NEW

%'•

V./

V"- 'WWM#

insize

is Philco
Corp.^
distinguished in.

enterprise

PETROLEUM

CORPORATION

split in 1940, followed by
1947, 7%
in 1948, 5% in 1951, preceded
by a
2-for-l split in 1950, plus
steady
one

stock dividends of 5% in

cash

distributions,

illustrate

TV sets, but were further support¬

by manufacture and

tion

home

and

distribu¬

motor

radios,

freezers, batteries, vacuum
tubes, and relay equipment.
One
hundred twenty-seven wholesalers
and 25,000 retailers constitute the
sales outlets.' There's also an ex¬
ranges,

tensive program of production'and
research in radar and electronics

Nineteen /fifty-two
around

$3.20

525,372
the

for

each
shares

common

New

York

the

3,-

listed

the undersigned

dividend

twice.

earned

The

better

than

last

year.

$40

million V loan and $10 million of

$3.75

preferred

for the

Laboratories

concerned but it is
maker

pioneer

with

research

far

50%
44 Wall

Street, New York 5, N. Y.

•

HAnover 2-6360

from

for

1952

over

excellent

electronics.

and

number of

$78 mil¬

25c divi¬

pays a

looks

times

For those who might
call DuMont overpriced here, the

whole

the

Pictures

mount

field,

and

(which

the entire

owns

class

little

ro¬

and,

capital

mayhap,

the

Gordon Howard Dir.

company

Of H. 0. Flood Co.

500,000 shares of

common)

suggest

may

growth factors not apparent from
current earnings.
There are 1,801,054 shares of class A preceded

shares of $1 dividend
preferred convertible

by 127,000
($20 par)

into the A at $18.19

share.

For

long range viewing DuMont
not be ignored.

can¬

•

Raytheon
been

tive

unit

Manufacturing

has

volatile and specula¬
than the first two we

talked

Cash

about.

have

common

the

through

dividends

been

years

noticeable

their

ab¬

although there was a 3-forstock split and a 5% stock divi¬

sence,
1

dend

Recent price of $13
the New York Stock Exchange

with 1952 (and all-time)

compares

high of 14%.
The
ends

the

May

made

the

That

and

2,170,942

per

First Boston

shares.

common

figure, if realized

Earnings Up in 1952

should not be, how¬
viewed as likely dividend

bait, since the company has heavy
cash requirements, particularly to
finance $210 millions of govern¬
ment business

backlog.

Of TV set

manufacturers, Raythoen has per¬
haps the largest percentage of
billings

government

its

gross

sales—about 58%.

Principal features of Raytheon
(1) its position as one of the
five
largest makers of cathode
ray tubes for radio and television,
are

(2) perhaps the largest factor ,.iii ^ special type of vacuum
tube

used'among other things for
guided missiles and Geiger coun¬
(3)

important

manu¬

facturer of Video sets through its

subsidiary

Raytheon

Radio

and

trade

Corp.

Television

The

The annual report of The

First

Corporation for 1952 shows
net income of $2,512,084, equiv¬

Boston
a

alent

$4.47

poration.

share on both
stock of the cor¬

per

classes of capital

This

with

compares

$2,149,011, equal to $3.82 per share
in 1951. Total capital funds, ex¬
clusive of reserves, amounted to
$19,570,562 at the end of the year,
$4.00

after deducting dividends of

per

the capital stock and
Net

the class A capital stock.

value

asset

was

$34.79 per share

Dec.

31, 1952. This compares
with total capital funds, exclusive
of reserves, amounting to $19,308,478 a year earlier, and net asset
value of $34.33 per share.
on

Raytheon

is carried for general

name

Gorp.

(up from

84c last year)
ever,

Street, West and has been

have been

$1.60

around

Gordon

Raytheon appointed a Director, H. C. Flood,
estimates for Chairman of the Board, announced.

ending then

—

T. Howard, has joined the firm of
H. C. Flood & Co. Limited, 360 St.

for

year

Howard

MONTREAL, Canada

James

fiscal

year

Gordon

in 1945.

G. V. Goodwin Joins

public sale; and in addition sets of
for

manufacture

private

Western

Biair

sold

are

branding

name

Claire

Supply Co., Mont¬
gomery Ward and Gamble Skog-

elected

mo.

and

„

Capitalization
cated

with

bit" compli¬

$20 million V .loan,
$3.6 million in long-term debt and
a

87,000 shares of $50

par

preferred

ahead of the aforementioned

While

mon.
on

earnings have

the fluctuating
made

com¬

been

side," Raytheon

big advance in sales
has a new cathode

ray

tube plant which should be

efficient earner,
of

stirred
tronic

should

its

romancers.

not

transistor

imagination
be

have

While Raytheon

advanced

thing but a speculation,
conceivably be verging
new level of profitability.
Others
your

own

deserving

yesterday

dent

Dardi.

upon

old favorite of

noisseurs

this

sticks

electronics

for
con¬

Goodwin also

nominated

member of

the board of directors at the forth¬

annual

coming

meeting

the

stockholders, Dardi said.
Mr. Goodwin brings more than
33 years

of experience in the se¬
business

which

Blair,

other assets owns the two
investment company subsidiaries
of Blair, Rollins & Co., Inc., and
among

California Company.

First

the!

Goodwin is also

board

serving on

directors

Lucky

Inc., rapidly growing su¬
per-market chain in which Blair
Stores,

has

mention

video review would be
an

will

Mr.

can

Corporation, it was
by Presi¬

announced

any¬

been

Vice-President

Assistant, to the President of

Blair Holdings

curities

elec¬

has

Goodwin

Executive

and the possibil¬

new

the

Holdings Corp.

Auto

substantial interest.

tered

the

1920,

later

securities

became

en¬

business

partner in

Wm. Cavalier & Co.,

which he left
general part¬
ner in the firm of Walston, Hoff¬
clutter up its operations with ice
man & Goodwin. He resigned from
boxes
and
appliances.
It's the the latter firm on Jan.
1, 1953.
largest vendor of auto radios and
to

probably

derived

this

year

field.

Motorola

and

share, with good fortune.
New

York Stock

Emerson,

On the

Exchange at 40.

Zenith,

Admiral

and

Sylvania round out the major in¬

dependents, and, of course, there
are

1941

always the

to become

doesn't

fourth in TV sets.
It
millions of business
and earn perhaps $4 a

were

viest research: labs in the business.

mind

and good

dividends

association of DuMont with Para¬

shoud do $180

sions, including studio transmit¬
ting equipment, broadcasting sta¬
tions, TV sets, cathode rays, elec¬
tronic parts,
plus one of the sav-

don't

you

mance

tronic research, the wide coverage

gain of

operating divi¬

electrical — General
Westinghouse.

gains.

That

dend.

are

mar¬

share for Du¬

"A" which

1952

support

price of $16

represent

1951

size

long record of

Sales estimated at around

lion

not
as

things

past record of excellence in elec¬

ket

Mont

that

contend

slender to

rather

Motorola,

class with Philco

set

leverage

common.

DuMont
a

provide

all

Electric and

earnings.

will

Some

earnings of about 50c

gen¬

projection here would suggest
that 1953 results might be as good
or

and

maintained.

broadcasting stations in New

ities

Stock

eral

broker

better

dash of specula¬
tion in your stock list, the TV's
may still turn in a paceful per¬
formance for you this year. Video
and electronics,
played back to
back, offer plenty of growth ele¬
ments.
If you pick wisely, and
string along with the units that
can
weather periods of incisive
competition, then you may be able
to
parlay this video vista into

was

Exchange
selling around 34; roughly 11
times net earnings with the $1.60

your own

middle

in recent years,

net

and

THESE SHARES ARE OFFERED AS A SPECULATION

the

York, Pittsburgh and Washington,
plus 61 affiliates broaden the base
for present and future earnings.

has

for the government.

be obtained from

The

Raytheon

Record sales of $360 million for
stemmed
importantly from

are

can

management and historically kind
its shareholders. A 33% share' ters and

1952

can

levels

point.

Offering Circular

sets

higher priced groups where profit

and

.«Second

for

others.

an"

STANDARD

inertia

market

13,881,000
common shares to overcome, let's
talk
today about some of the

OFFERING
'i'

produ^fer in sets,

wlioleT electronic

the

and

The

Thursday, March 5, 1953

two Mr. Bigs

Lawson, Levy Add
(Special

SAN

The

Financial

Chuonicle)

Calif.

FRANCISCO,

—

with
Lawson,
Levy
&
Williams,
1
Montgomery Street, members of
Adolph B. Canelo III is

the

San

in change.

Francisco

now

Stock

Ex¬

Volume 177
.

■*[
,

Number &200 ...The Commercial and Financial
Chronicle

(1005)

;•

•

*<r

•

■

•"

<» i'

Research, Engineering, Production
Facilities Manned for
Increased Profits
Motorola, in

and material

resources, is geared for growth.
production and merchandise are " developed
from long range, realistic appraisal of the dynamic field of elec¬
tronics whose horizons are not yet measurable. These are the
essentials of growth.
^
men

Motorola research,

Television, with
;

wealth of entertainment and service fea¬

tures, is already a vital part of the American scene, although
commercially only six years old. Larger screen sizes, second set

and
replacement sales, and new TV stations in new markets
encouraging factors in evaluating future-demand;
•
'

Radio, long

family necessity, retains an important position
place. Motorola has developed significant ad¬
vances in radio
design and revolutionized production techniques
:to increase the desirability and reduce the cost of home, port¬
/•

in the

■

market

able, and

are

car

radios.

•

;

Specialized communication arid electronic equipment,
pioneered by Motorola, has increased in demand for industrial,
military and civic purposes. Demand for development of new
equipment Tor new purposes
where one application suggests

another

hints at

products

as yet

unexplored.

Motorola is

'i :

...

■.

„

prepared for increased production of profitable
products in the expanding field of electronics. Motorola is the
world's largest exclusive electronics manufacturer. IT
{ .

QUALITY IN QUANTITY. Mass production of TV sets on the Motorola assembly line
requires "hot linfe" and "shake table" tests to guarantee top performance in the home.

TO HELP BUILD AND KEEP A

Motorola's.

new-

STRONGER AM Eft ICA

laboratory for advanced electronic research, at

Phoenix, Arizona specializes in the development of electronic, and
commutation

equipment for the Atomic Energy jCoinmission and
agencies.; w ; ,
IV. - '
:

other national defense

NEW
ment

PRODUCTION

FOR NEW PRODUCTS—Motorola's develop-■
(plated circuit chassis) replaces a maze of wiring and connections
simple, wafer-thin, prefabricated "plate." New, compact, efficient

FACILITIES

of the PLAcir chassis

radio sets with

machinery

mass

one,

produces the PLAcir chassis.
O

QUALITY IS A "MUST". Just
the

one

many

checks made in

radios, part of the rigid engineer*
ing and testing standards, that maintain a reputation for ability
to withstand shock, vibration, temperature and humidity strains.
production of Motorola

ear

Motorola Inc
WORLD'S

LARGEST

EXCLUSIVE

ELECTRONICS

MANUFACTURER

The Increased Demand For Credit

Monetary Policy and Savings

The increase in the liquid

ings

By E. SHERMAN ADAMS*

American

Bankers

Stresses

Association

has increased by
and

the practice

of thrift and suggests a program to accomplish this
objective. Points out greater personal savings will aid Treasury

though

held

months

while

exceeding supply of mortgages, thus com¬
plicating investment problems of savings institutions.
monetary

economic

The

strated since

the outbreak of

war

Korea.

Let

examine

this

experi¬
briefly

ence

what

see

lessons we can
derive from it.

During

crease

in per¬

sonal

savings

ond

rate

savings

savings, drew
increased

and

their

borrowings, in order to purchase
goods which they expected to be¬
come

has

viduals

was

causes

occurred

Since

one

the price

the

chief

the

dollars

nelled

personal

place
ings.

into

have

from

away

the

preserve

force,

the

been

the

reservoir

This has been

inflationary

into

American

Bankers

Bonds

remained

of
you

account,
that

much

the

savings

have

satisfy

rations

been

rate

loan

take these factors

you

the

reach

the

for

been

not

con¬

Bond

record since Korea is much better

than

many

that

the

been

The

Federal

considerably

taken

place

savings.

ability of the Federal Re¬
authorities to restrain credit

serve

greatly enhanced, of

was

sav¬

by the spectacular increase
has

cor¬

people have assumed.

Allen B.

additional

funds

and

to
As

expand
result,

borrowed

have

concerns

make

even

able to meet

avail¬

funds

private demands for

credit.

Adding
for

together

funds

the

corporations since Korea,
that

this

the

ceeded

demand

total

available

such

situation,

the

from

source

funds

ex¬

revealed in all its magnitude.

make

the

not

mistake

ment.

the

This

Since Korea

sented

credit

authorities.

essence,

$ee

Their

job.

that

there is enough, but not too much,
bank credit.
Since Korea,
they

have
of

some

rearmament

the
to

permitted

expansion

bank credit to meet the needs
same

economy.

time, they have sought

prevent credit from expanding
fast

their

and

too

far.

general,

policy has been one of mild
on
the
expansion
of

Taylor,

lives."

our

recent

Jr.

credit.

and

the

just

part of tele¬

vital

WALL & FLOOR TILE

**
mm

liquor
used

television

Texas

specifi¬

allocated

mm
i m

i m

i m
i«

i m
i

versus

than double
were

net

$1.07

ri>e in the costs of

Dividend

record high of $7,622,249

use

enly

will

limited

share,

rate

are

for continued

A
as

,he Annual Report

may

suf¬

give

all-irclusive

and

of Industrial

Salt

stationed

Saints
Lake

overflow

television,
color, is

Use

who

Those

matters.

the

and

see

singers

and

able to "attend" in

were

other-'

could

speakers

religious

wise have been unable to
hear

have

City

crowds

three-day conference

nearby

hall.

Universities

have

used

instances in telecasting edu¬
cational, science and other confer¬
ences
to nearby overflow
audi¬
many

ences.

Recently
British

with

men

sub,
the

viewers

and

ship

read the sub's name,
the

located

cabin

could

even

"Affray,"

prow.

office

Federal

defense, units

training
circuit
at

Salvage

camera

compartment

salvage

the

submarine

aboard.

men
a

water-tight
on

used

was

salvage

lost with 75

workers

have

had

through closed

masse

sent

civil

recently

cities

several

once.

The

armed

forces

are

ex¬

now

perimenting with training recruits
reservists through closed

cuit

cir¬

TV.

Industrial

is using TV
checking smoke

power

plant

smoke

Scientific

and

Use

are

checking

testing television
aid to switching
on

incoming and

outgoing trains.

§| ||

Police

L?HiiKI»MK8!Hl»!M!n!fi»|«aiail8n«ii!lXSll|gB

address

Houston, Texas, have

by Mr. Taylor before the
Texas Society of Prr fes-'ona'
""ns.neers,
Luboock, Texas, Feb. 2S, 1933.

Dominant

Become

According to television experts,
industrial and scientific television
may

using it in closed
telecasting of operations

yards

and

Lonsdale, Pennsylvania.

Will

company

means

Railroads
in

*An

its

with excellent results.

year.

be obtained from the Company's office

al¬

play.

Hospitals

Malcolm A. Sciiweiker, President
C0W

field
the

are

stacks.

prospects

capacity production this

what

over a

industrial

utility
a

circuit

backlog;

use

sales¬

cities.

Latter-Day
it

used

Among already existing uses are
of the following examples:

conditions

3-month

whose

large

between

some

1
^

spread

monochrome

Members of the Church of Jesus

and

Company purchased a pyrophyllite mine—assuring
supply of this important raw material.

1953 started with

instances

varied
picture of

Cases

$.55 per share.

educa¬

fraction of

someday be, there

destined to

unchanged despite a continued
labor, materials, freight and fuel.

continued

field.

industry and science

are

conduct

"meeting"

Christ

the

numerous

were

station

(Schenley)

concern

several

looms

tool

only

present

small

and sales managers

men

the

the
foresight of those

the

which

both

share compared with $1.15 in 1951.

it.

These

use.

role

earnings.

per

scientific,

industrial

Although

good
a

will

television

ficiently

Ta:-es equalled $2.30

Net worth increased
9%.
The

who

Product sales prices remained

its

$7,547,627 in 1951.

Earnings

\m
Ui

slightly, establishing

^Federal and Excess Profits

and

ready
rose

f m
i m

business,

in* agination and

COMPANY, INC.

"non-entertainment"

tional

to nOw. But

it is only one facet of the
development awaiting television

others

Mont

of telecasting

circuit

sales

handle

golden op¬
education generally

Du Mont TV sta¬

The sales department of a lead¬

has

future

the

Some

in the stu¬

were

York,

New

from

excerpt

educational

Closed

signatories

ing

18 channels

part

automotive company.

Washington, D. C.

func¬

F.C.C.

although
a

tion and place
This

has been afforded

the action

means

ing

WTTG,

the state of

ment

offers

from

planes already in the air.
Television has already been used

tion,

industry and science.
portunity

dios of WABD,

tip-off on the enormous
importance of a phase of televi¬
sion not generally realized by the

restraint

of checking on
any
points

means

traffic

But entertain¬

Television

quick

aircraft

and necessary.

vision's

role

Airport is starting to
conjunction with radar

around the field and

statement

public—the

of the

important

scientist Dr. Allen

Mont is

London
use

it to check

lawbreakers in jail cells.

Entertainment

pre¬

problem for-the Federal

entertainment.

the signing of a television contract

demand* for

Laboratories, Inc.

ment medium.

pansion of bank credit.

television in

Sales

page

entertain¬

disparage it

it, of course, the commercial
banking system—through an ex¬

Monetary Policy

mean

de¬

mand

ENCAUSTIC TILING

i Mm

of witnessing the sign¬
contracts between signa¬
tories at. long distances from each
other.
One instance of this was

not

additional

meet

Continued

entertain¬

other

only

putting it in a
fixed category

potential

THE YEAR IN BRIEF

government bond prices below par

home

play in our lives is in
making, but has yet to be

new

it.

meet

which

come

can

find

accumulation

savings
a

has

AMERICAN

new

decline

The

^ "The really big role that tele¬ experimented with

the

and

use

vision is to

demands

individuals

Du Mont

override

mm
mm

pro¬

mortgages and

bonds.

corporate

the

reinvesting

new

of
or

par

television, both monochrome and color, is destined to play.
Says experts look for industrial and scientific television use

addition, have sold government
securities, on balance, in order

n r

ANNUAL REPORT

trial

heavily.

not

1952

|WK MMM

and

better
ceeds

quantities

large

securities

Asserting closed circuit television looms as a business, scien¬
tific, educational and industrial tool, whose potential is limited
only by the imagination and foresight of those who use it,
Mr. Taylor cites examples of the all-inclusive role which indus¬

selling

Manager of Television Transmitter Division,

corpo¬

been

government

course,

here, to achieve
greater educational progress than

TIT-

companies

Industry and Science

banks and insur¬
had previously

savings

Many

bonds.

government

from

pegs

ance

By HERBERT E. TAYLOR, JR.*

cally, with

Manufacturers of

Federal Reserve-

the famous

Treasury "accord" of 1951, which
led to the withdrawl of tne par-

Television Use in

sufficient

demand

inventories,

too

Savings

eased

task

has

recoid

plant and equipment.

years

lower

and

the

years,

Reserve

augment working capital, to build

ma¬

,qf' withdrawals from

accounts

clusion

Asso¬

which

Finally, despite

very

personal

Conversely, for the past two

Nevertheless, these record

savings

ciation, New York City, March 3, 1953.

levels.

Reserve

shares.

the

and

heavy maturities, the rate
redemptions of Series, E Bonds

repurchase

the

profits have

these

than the rate

uted

has

sav¬

*An address by Dr. Adams before the
Annual Savings and
Mortgage Conference
sponsored by the Savings and
Mortgage
of

during the early

of World War II.

potent anti-

stability

Series

failure

Series E

sold

were

chan¬

helping

and

the

been

has been

(heavy

market
of

program

turities of

sav¬

economy.

Division

Savings

Bond redemptions has been partly
accounted for by the

ings has been greatly accelerated.
Income

jumped
the

Treasury obligations.
Moreover, the increase in Savings

spring of 1951, how¬

rate

have
that

ketable

inflation that

during that period.

the

ever,

well.

Bonds, which are
bought mostly by large investors.
This was caused largely by the
rise in yields available on mar¬

Korea,

and

higher priced.
This excessive spending by indi¬
scarce

Since

Korea.

period

people

increase in

porate savings in the form of de¬

only during the first of these
periods, but during the sec¬

conclusion

rate

ings.

record

Savings institutions have
only invested all of their new
savings in new private debt,' but,

monetary authorities were in¬
tensified by the dec.ine in the

1953

investment

and

business

Bond

re¬

the

savings

bonds

new

during these periods. The record
is disappointing, to be sure; but
there are several mitigating cir¬
cumstances.
First, part of the
decline in sales of Savings Bonds

their

look

us-'

Bonds

Savings

declined

duced

current

sharply.
dividuals

Dr. E. S. Adams

instructive

Some
the

In¬

was

savings

two

the rate of in¬

Savings deposits showed a slight
net
gain during the 12 months
following Korea, and thereafter
increased very substantially. By
comparison, the record of U. S.
Savings Bonds is less favorable.

not

broke out,

war

past

Let

business

Savings Bonds

have exceeded sales of

Korean

Regulation

the

analyze the
performance of different types of
savings during these two periods.

Redemptions

the

first year after

the

lor

preciation charges and undistrib¬

rlability has been vividly demon¬

Record

check

During the period immediately
following Korea, t/ e proolems of

strong inflationary factor.

since

savings

indebtedness,

effect, has increased more than
billion.
This
heavy
deficit
financing by individuals has been

debt repayments,

relationship

about $19 billion;

consumer

Chronicle... Thursday, March 5,

converting short-term debt into long-term obligations, and
foresees possibility of accumulated savings, together with

and

offset

been

The

past
to

the

over

has

the rapid
growth that has taken place in
personal indebtedness. Since
Korea, residential real estate debt

of encouraging people to continue

need

public

years

sav¬

considerable extent by

Dr. Adams reviews nation's monetary policy since Korea, along
with growth in individual savings and the increased demand
for credit.

the

several

Deputy Manager, Department of Monetary Policy,

policy

Findncial

The Commercial and

(1006)

easily

become

wide¬

spread and important than home-

television

consumption

today

which, relatively speaking, is still
in

its

infancy

and

concentrates

which
come
mainly under the general heading

largely
of

fields

entertainment, sports

news

coverage.

executives

industrial

point

scientific

Continued

out

that

television

page

Volume 177

Number 5200

The Commercial and Financial Chronicle

(1007)

Raytheon Microtherm®— For
Penetrating Deep Heat

Raytheon Weldpower®— For
Precision Electronic

Welding

Raytheon Radar and Fathometer®
Aboard S.S. United States

% u

Behind Every RAYTHEON TV Set

When you buy a Raytheon television
receiver, you're

buying Raytheon electronic experience. You're buying
28 years

of engineering know-how-the diversified skills

sistors, the newest "mighty mite" of electronics.

Raytheon is the world's largest producer of marine

which have earned the
company world-wide leadership

radar—holds

in many fields.

for

Raytheon was the first TV receiver manufacturer with

continuous, all-channel VHF-UHF tuning.

FOR

RAYTHEON

Raytheon is the first commercial producer of tran¬

over

$200-million in government contracts

Army, Navy and Air Force electronic developments.

This electronic

leadership stands behind

Raytheon TV set and

TODAY-...

every

other Raytheon product.

FOR TOMORROW

MANUFACTURING
WALT HAM

every

54,

MASS.

COMPANY

)'■

The Commercial and Financial Chronicle...

(1008)

want to lighten up. Un¬
less you need tax losses urgently,
sell the part that shows a profit,

Continued

you may

Eyeing Tax Laws in Stock Trading

especially

By EDWARD W. STERN
Herzfeld &

you

advice regarding impact of tax laws in
effecting stock transactions. Concludes it rarely pays to take
losses in excess of profits.
all

transactions

our

would

trade

that

show

way),

how

would

have

sider

the

pact
on

not

taxes

three

sales.

the

tax

better

change

about
for
Edward

law

advantage

Stern

two

regards.

the

Even

trading

and

into

year

have

you

profits

take

for

every

two

a
in

dollars

lot

few

are

between, make

selling

tax

by that

and

practice
profits

dollar in losses, during
this period.

ideas

our

loss

the

sections, when you think of
laws
in
selling stocks.

losses,
far

to be
for your

tax

will.

sell

securities.
W

likely

few points fur¬

up a

reduce

The

second

part

the

year

July 1 to Oct. 10. During this
part of the year, accept every
runs

available

took

you

but if

you

about one-fifth of the shares listed
in

1946

selling 40%

low

their

sion

the

cost the
and

1946

capital gains law has
a lot of money,

Treasury

should plan tor the

be¬

this provi¬

peaks,

liability

maintain

order

position.

your

provisions

as,

accepting of tax

1951.

excess

valuable

unless

in G.

tax bracket

your

you

aren't that rich,

during
done

which

the

worst

fade

badly when people begin think¬
ing about tax losses. Do your tax
selling early, not late.
You

the

of profits, up to $1,000 to be taken
against regular income, is not very

is up

spell,

that have

same

And

losses in

weak

sues,

likely to
which you

are

own

some

is¬

run

10, such issues

to your break-even point,

third

the

end) period, prefer to accept the

will do for

biggest single loss

scientific

you can,

January,

February,

take your

tax losses

end

take

pays

profits, just to

ELECTRICAL AND

COMPONENTS
i

losses in
save a

♦

It is not

year-

sources

the

and

weapons

paper,

film

use

manufactures

few dollars.

$22,557,000, net income before

Out of this intensive ef-

erations.
has

equipment for de-

come

continues.

$6,493,000 and net income being

taxes

Tremendous

spent

year.

wide

cern,

of the company into a
variety of folding cartons
in packaging for consumer

Some 175

people

new

the

that"

com¬

than

the total tonnage of fold¬

was

aries

net

of the largest and

field.

produced

50.

used for

fabricating

six

This

not

its staff which

ago

years

isolated instance

materials,

increased

current

about

now

use

mimon

tele.

and there exists

potential total market of some

Electronics

Industry

Has

Un-

precedcnted Dynamic Quality
...

„

From

million

are

The

users.

difference

limited to this figure for many

reasons.

this accelerated research,

For

thing

one

sets

electronics gets its unprecedented

from

approxi¬

assets

increased

$3,121,000

from

$6,847,000. During the same period
approximately $8,048,000 of earn¬
was

Joins
(Special

SPRAGUE ELECTRIC COIRPRRV

continue

are

is expanding and
indication that it
to expand.
There

car¬

retained in the business.

Bailey & Davidson
to

The

Financial

Chkonicle)

FRESNO,

•

every

numbered but vjsion sets in

which

includes

.markets in areas where new
go into operaappears aboutr* tion. „ To March l,last, the Federal
to be superseded. Not so long ago,.Communications Commission had
out of the Bell Telephone labora;f£a
constJ*uction permits for
ory, came the transistor—a gadget 23® stations.
These, Pl"s the *08
the size of a green pea. Scientists P.P.
ai£ wben the £ePze,.
predict fabulous things with this hfted, make a grand total of 338
device which performs most of the authorized or on the air of the 400
new

scientific and engineering data.
For

all

vacuum

of its

tube

achievements the

MASSACHUSETTS

Jp casting

now

of the

functions

vacuum

tube.

is claimed, for example, that the
transistor will change all of our

originally scheduled. By the close
year a, P P 2? n?ore
311
2?0 are expected to be in operation. These new stations will ac-

Calif. — Alma Ryan
joined the staff of Bailey & lives more profoundly than any
discovery of the past 100 years, count for the production of $1 bilDavidson, 2133 Fresno Street.
Electronics wizards say it will in- h°n m electronic equipment this
spire further inventions and con- year. Since only a relatively few
has

ADAMS

television

of 29 million does not mean sales

the food industry.

approximately

and related apparatus.

NORTH

production

in industry but rather the rule.

employed in the develop¬

components, dielectric

The

equipment for entertainment is
stiu the largest single reality as
well as the most important one

chemists, physicists and wjjj

called electronics

ings
are

estimates

The

mately $3,791,000 to $7,624,000 and

electronic components

are

sums

government

talking1 pictures

of the

leading

complete Research and Development lab¬

oratories

ment

one

Let's take

in that order,

auyatjon
J.; Palmer, Mass.; and 'Steubenville, Ohio. During the five-:
tanoe telephonyBut the bi2gest stimulus to sales
year period ended Dec. 27,
1952
and those complex machines' that- in the months ahead undoubtedly
net property, plant and equipment
and interpret v-will come-from the opening of
of the company and its subsidi¬ compute,- tabulate

Wlitary electronics.

Sprague maintains
most

items.

producer of magnetic ceramic materials for tele¬
vision and

presenf owners will be replaced,
The company's paperboard mills
por another, quality is improving
are
located at Versailles, Conn.; dynamic quality. Heretofore, the on new models. Then, too, color
developments that most are famil- television
Steubenville, Ohio; Bogota, N. J.;
may go into production
Montville, Conn.; White Hall, Md.; jar with derived from the vacuum . by ear]y ]954
And this innovatube. This tube made possible
and Reading,. Pa.
that-^-jon ajone will probably touch off
It has carton
tremendous field
of
technology a
plants at Versailles, Conn.; Bogota,
buyjng wave of several years*

high temperature magnet wire, which has Wide

them

One nahonally-known con-equipment
for example, today has 500 th|re js

engineers,

sistors. It is the only producer of ceramic-coated

Corporation of America,

other

boxboard

1952

cision resistors, and
power-type wirewound re-

Ferroxcube

the

of $2,397,000, or

sidiaries

tons for

ing networks, radio interference suppression
filters, borocarbon resistors, wirewound pre¬

military applications. It is half .owner

with the eventualities.

private
companies
on
re$3.37 and
per common share based on
the search. Government research and
700,000 shares of common stock development contracts for the ex- dollar-wise in the peacetime apploration of radar, sonar and tele- plication of electronics. ■» The 1953
now outstanding.
The company is engaged prin¬ phone
communications are still factory value of this production is
cipally in the manufacture and being awarded. Similarly, private expected to exceed $2*4 billion,
sale of folding boxboard which is industry Ms
pyramiding its reMoreover, the market for home
departments
year
after television sets and for broadcastfabricated by customers and sub¬ search

ing

printed circuits, radar pulse-form¬

From the investors' viewpoint
this picture of electronics presents

Paper Board Go. Stock

half of

trical, and automotive industries. Sprague also

re-

tecting the approach of the enAs recently as 1939 the factory
for navigating safely in fog value of electronic equipment proand darkness, for sighting artil- duced amounted to
only $230 rail¬
lery, for remote controlling of lion> Last year the factory value
Goldman, Sachs & Co. and as¬ bombs, for forecasting weather, 0f electronic equipment producsociates are offering 200,000 shares and for analysis of complex logistion had a value of $4 billion. This
of Federal Paper Board Company, tic problems quickly, as well as a
year it is estimated that produchost
of
Inc., $5 par value common stock
subsidiary devices. More- tion will top the $5 billion mark,
at $17 per share.
over,
without
electronics
there Qf this $5 billion, the bulk will go
The shares are being sold for could have been neither an atom either to the armed forces or for
the account of selling stockholders nor hydrogen bomb project.
use in the field of sight and sound
and no proceeds will accrue to the
This concentration in the elec- communication,
tronics field on military produc¬
company.
The company and its subsidi¬ tion, and research orders for comTelevision — Largest Peacetime
aries reported for 1952 net sales munication and control equipment
Application of Electronics

pany

in the electronic, elec¬

unlimited

of money and men for re-

emy,

numerous

electrolytic, mica, ceramic* and plastic

capacitors for

and commercial eventualities, like
the transistors. The latter, for ex-

But
search telescoped discovery time two aspects and both must be apit rarely
for these devices into a matter of praised. The first deals with presexcess of
a few years instead of a few genent-day realities, and the second

sale, such every-day articles as
foods, soaps, tissues, tobaccos and only

diversified line of

mercial realities, like television,

speculation.
The elecis here, but it is for

mathematicians

For this reason care must be

ity.

taken to distinguish between corn-

age

Bankers Offer Federal

used

Sprague manufactures

matter of

Against this background, two
fields of electronics are
—
the military and the
civilian—and the former has prior-

separate

revealed

the

year,

tronics

fort

after

ELECTRONIC

or
on

us.

lighter and more compact gun
controls and communication and
guidance aids now are possible,
This, in turn, means higher speeds,
greater range and added power,
or—in brief—more fighting punch,

ample, already has become the
mighty midget of the military but
the most part in custody. Its cus- hardly works at all for civilians,
todian is the armed forces.
The And the same thing is true of the
requirements first of war and electronic. Compared to what we
then
of
defense
have
held
up know that magic particle can do,
peacetime
application
of
most very little actually has been done
electronic developments. The ur- In gearing it to the multitudinous
March, gency for the invention of new uses °f industry.
rather

rally rather than earlier.

regardless of fiscal

taxes of

RELIABLE

And they can costs less, weighs less and uses less
current. Thanks to the transistor,

reach out to determine movement

period, disregard
this factor—take the profit or the accurately at great distances. Inloss according to
the way your virtually every function of the
sensory or
nervous system
they
other trades stand.
outperform man. In the light of
If, during the first two periods
electronic developments to date it
you need a tax loss, and have the
is not too much to say that this
choice
between
several
small
science ultimately can enable any
losses and one large loss, accept
mechanical activity to be handled
the loss that will give you the
faster and more efficiently. This,
most in proceeds.
Because if you
in a broad way, is what we actualsit back patiently and wait lor a
ly know electronics can and illbuying
opportunity,
you
can
timately will do for us.
probably make more profit with a
Let me repeat that we actually
larger capital than with a small
what electronics can and
one.
But during the third (year- know
ing

MANUFACTURERS OF

of vapors and odors,

measurement

have several

commitments,
some
showing
a
profit, some a loss. If, during the
time prior to Oct.

They make possible

able to
But dur¬ acidity of liquids.

stocks

anything previously into the mobilization program,
where the small but rugged device
has opened a virtually unlimited
the sense of taste by horizon for more reliable and simof
the salinity or pier
electronic equipment that

loss, you

The
to the point than several small losses.
capital where
your
losses equal your proverbial year-end rally is likely
gains provision 'of the 1952 tax
profits.
There is good reason to to change a lot of small losses into
law,
which
allowed
long-term end the second
period on Oct. 10. an aggregate profit—if you must
loss in excess of long-term gains
Usually between that date and the accept a loss, take the loss that
to count in full, is not likely to
year-end, the market has an un¬ will disturb the fewest positions.
remain in the 1953
bill.
With
If
pleasant habit of enduring a very
your
fiscal
year
ends
in
loss

The

And Eventualities

do this

can

profit,

the

replace

You

man
beyond
may not buy back
dreamed of.
and by then the stock
the detection
may
not
be
on
the
bargain
counter.
Take
the
bigger
tax They extend

took

first part ends June 30.
Be
optimistic enough to expect to
live through the year; you usually

laws

when

waited

you

If you do some

for 31 days,

The

disregard

and

Divide

afford

cannot

run

much.

im¬

Otherwise,
t

ther

con¬

our

than

less

stock to

saving

tax

your

repre¬

long-term gains (and I wish

someone

want

may

shares you sold.

Mr. Stern gives some

Television—Its Realities

commit¬

earlier

page

selling, and the* stock settles back,

Members, New York Stock Exchange

sent

if the

ments Ishow losses.

Stern

from first

Thursday, March 5, 1953

Lawrence Cook Adds

(Special

The Financial

Chkonicle)

trivances with

uses

that cannot be

imagined today.
.

CLEVELAND. Ohio—William J.
Grealis

Cook

Co., Fidelity Building.

now

with

Lawrence

At the minute, many electronic

companies
but

most

are

making transistors

of their output

is going

stations

new

will

the

air

during the first half of 1953, the
,

„

chief impetus to sales of sets from
new

markets will be felt only in

Volume 177

Number 5200'.,. The Commercial and Financial Chronicle

(1009)

the latter part of this year and to

greater extent in 1954.

Even without this impetus, 1953

low-grade ores. All of these applications have a host of potential

An outgrowth of elec-

markets.

The

effect

the

transistor

limitations

present

remove

electronic progress.

that

cepts may sound like wild flights
of the imagination but
they are

These limita-

tions were set by the shortcomings
high Ironies that is rapidly finding
rate. In fact, authorities have been fay<>r with industry is the field of of the vacuum tube, the heart of
revising upwards estimates of set ultrasonics
in
which high-fre- all electronic devices and equipment. Despite its mighty contriproduction.
A few months ago Quency sound waves are utilized
1953 set production was generally
an ever-growing number of butions since its invention by Dr.
Lee DeForest in 1906, the vacuum
projected at 6V2 million units with factory operations.
tube has had certain shortcomings,
® whotesaie value of $114 billion,
other Electronic Developments
It is
short-lived and fragile; it
This figure would be withm shoot-

teleset sales have been at

There are a number of other

ing distance of the record 7% mil-

developments
cently, the president of Emerson are "r?hJ»es
lion sets turned

Radio

forecast

year.

This

official

and

of 5,384,798

1950.

Re-

million

would

1951

out

set

with
1952 production
compare

and 6,096,279 sets

spectively
.'
This bright outlook

re-

electronics that

but have not quite

Te^i ^ P01"1 where th.ey

ml$bt be classified as commercial
realities. Perhaps the most imP°rtant «'he. highly publicized
electronic "brains."

ness

television

These busi-

machines, perfected to

lex

in di

ital

a com-

computing

accompanied by the prospect of solve
the most abstruse mathema-

the

time functions with

same

paratively great

economy

com-

ma-

terials and in power.
A

startling illustration
economy in size and power
as

its effectiveness

its

of
as

well

given last
by Bell Telephone. You

summer

was

remember in the Dick Tracy
story back in 1946 how gunmen

may

les*than

television

1955

fiction.

compared

These electronic

with the 1952 expenditure of some

The

computers are
Without them it

transistor

so-called

be-

cause it transfers electric current
products.
entirely likely that the deadly across a resistance. It is best de¬
guided missiles .Vwould be^ years scribed as a simple little instru¬

proven

$400 million.

electrons.

Such

con-

Henry E. Reichert With
Negley, Jens & Rowe

fanciful than guided mis-

no more

siles

ships. And even the
longer are far-fetched

or space

latter

(Special

according to the president of the
Consolidated-Vultee Aircraft Corporation. He was quoted recently

The

Financial

PEORIA,
Reichert
with

saying; "Some of the problems
are working on right now in
generates considerable heat and it the field of guided missiles for the
is
too
big.
The transistor by- armed forces are basically more
passes these disadvantages and at difficult than that of
building a

profitable broadcasting
problems
instantaneously,
operations. A great deal less is
Electronic "brains" use thousands
tried to steal the two-way radio
being heard about the high costs 0j tubes and
bave cost from $700,wrist watch of a blind scientific
of television shows and time And
000 to $lj500j000 each. The
summer
genius.
Last
the
Bell
recently a leading trade publica- a dozen jn existence
were built in
Telephone presented such a de¬
tion reported, the estimate of a
connection
with
governmental vice to the cartoonist
whose fic¬
large advertising agency that naprojects and 90% of the work in tion it was.
tional advertisers would be spendOnly the transistor
developing them was paid for with could have made fact
out of that
ing some $750 million annually on
Federal funds,
more

runs

111.

has

Chronicle)

Henry

—

become

Negley, Jens

associated

Rowe,

Jef¬

ferson Building. Mr. Reichert was

formerly
&

spaceship. If we can accomplish
the former, and I assure you that
we will,
then there is absolutely
no

why^we

reason

can't

accomplishments, great as
.have _beeil> do, not weigh
heavily

against

electronics

know

and will do for

can

in the future.

what

they
very

Hyde, for the past

several years associated with Wm.
E. Pollock &

Co., Inc., in BeverlyCalifornia, passed away

Hills,
Feb.

21.

Now Allen Beers Co.
PHILADELPHIA, Pa.—Allen E.

Beers has
to

admitted V. F. Hartzag

partnership

which

business

his

will

investment

now

con¬

If electronics is not

its

officer of Allan Blair

William G. Hyde

William

the

latter."
*n the light of that observation
who can saY where electronics
wlU take us or what it will do for
us? Thus far it has given us radio,
radar> television, etc. But these

Company of Chicago.

infancy, certainly the evi¬
dence indicates that it is just be-

ducted

the

under

firm

name

Allen E. Beers Company from of¬

fices

123

South Broad Street.

inning to grow up.

Industrial Use of Electronic

from

Equipment

development.

They

have

By contrast with television, the been invaluable' to ; thedefense
production of electronic equip- Pr°?ran1,
■
ment for peacetime use in indusThese same machines, in vary try is relatively small. Yet this in^ degrees of complexity, may
field inherently possesses all the PIove
be the electronic heart,
elements
for
as
spectacular
a They offer
the widest range of
growth as television. In fact, many possibilities.
Most obvious uses
.

authorities

believe

that

ultimate-

ly, 1 unless • international tensions
worsen,
it will far surpass the
dollar value production of television for entertainment; There are
who

some

believe

that

1972
dollar production of electronics at

factory level

the $20
growth envisioris scores of new applications
of electronic principles in industry and communications. In one,
may

billion mark. Such

reach

for

example, production 1 i n e s
be
completely automatic
from the reception and inspection
would

of the

raw

material to the packag-

ing and inspection of the finished
product.
-r,

•

j"ar}Se from the computation, tabu-

}a.f.lon aad interpretation of

tubes.

Substitution

the

with today, elec- jess
expensive transistor for tubes
tromc principles are applied to
where possible undoubtedly will
production m limited fashion. For
bring their ultimate
tag
the most part, industry is using
down
Ting machine may spark
electronic
devices
presently
to the
development of a whble new

pri/e

ma'1hmfryelectronic
application
all-electronic

i
involve

TwT

-«

?n?

vices

try

fnnTg+

simple.

use

Photoelectric cells

and other control devices have the

industry just

less

the television did.

office.

Another

ing

of phenomena

th|

human

eye

the

not

record-

visible

third

the

™

!L fy
reach. Moreover,
thfiWhi
aii Jn
the tif
electricalir and
f

substantial

LheirvvTSt/°PUlar T
n! In
V
wherever
sensitive
control
is

vacuum

against

speck of germanium, a
widely distributed semi-conductor
a

occuring in many ores and miner¬
als.- Initially it was manufactured
for about $12. More
recently sales

Ultimately the
to

reach

price

about

proportions -

busi-

cathode ray tube to their individual

needs/

Here,

too,

tion

on both entertainindustrial television is

Its jmpact
and

One

without flame

dielectric
or

use

the plywood and plastics fields.
Another is induction heating—also

without flame
steel

—

and used

industry for hardening

the

„

Importance of Transistor
The full promise of the transis-

new

Is
a

Schumann

associ-

now
t

electronics

with

their

Phila¬

delphia office,
Chestnut

1421

Street,

of
Municipal

manager
the

Bond

Depart¬

ment.

of everyone

Prior to

joining Hemp¬
hill, Noyes &
Co.
m

Mr. Schu-

$ n

been
ner

Schumann

phin
from

tyflLCOX'fjAY

had
part¬

Dol¬

Co.

the time

discovery that has set fire adelphia and the Bala Golf Club,
imagination of the scien- He
resides
in
Morton,
Ridley

this

the

well

vacuum.

Township, Pa.
though

the transistor is
distance away from

good

because
has

military priorities, it
already brought about the

"miniaturization" of

some

devices.

Perhaps the first is a three-ounce
hearing aid th&t recently went on
the

ment Traders Association of Phil-

market.

sound

Another

recorder

carried

Now Barham & Co.
CORAL

GABLES,

Fla. —Bar-

ham and

Co. has been formed

continue

the

investment

are

comment

recorders of

and

course

the

took it

can

electronics

little

MODEL 3A10

located at 2207 Ponce de Leon

tiny Boulevard. Officers of the new
in
the corporation are Kingsley Barham
a

Motors used this
device at its recent big Motorama
auto
show
to
sample
opinion.

candid

business

of Barham and Cleveland. Offices

III, President; R. F. Jonas, Secre-

you a portable, 2
speed, tape Recordio designed for fun

sley, Vice-President.

for

Record

everyone.

favorite

your

records, radio and TV shows
as

unseen

all in.

doubt

Wilcox-Gay brings

tary-Treasurer; and Pauline Tin-

your

voice

own

button

...

the

well

at the press
PRESTOMATIC

keyboard.
Recordio
memories

the happy
day-to-day events

preserves

retains the true character of busi¬

conferences records

ness

step-by-

step progress in learning.

MANUFACTURERS OF
THE WORLD-FAMOUS

Prospectus on request from
investment dealer or

your

TELEVISION SHARES
MANAGEMENT CO.
135S. LaSaileSt.

115 Broadway

Chicago 3, 111.

NewYork6,N.Y.

Send

that

HOIUtCH OF FBI 4/1

NOW MIGHTIER THAN EVEN

RADIO and TELEVISION
Prospectus describing
Company and its Shares

ate a

proving to be the
magical key for unlocking the se¬
cret compartments of nature. And

NAME.

THE WILCOX-GAY

CORPORATION

tor is that it may form the basis most of these compartments have

for

Walter

matter

industry, not even been approached as yet.
poses.
Still another type of elec- That is why its development has They hold such huge potentials as
tronic action, called electrostatics, been hailed as a landmark in the the electron-controlled
completely
Jha? been put to work to process ever expanding electronic world. automatic factory, or the motor
pur-

;

lutionary fact about transistors of the firm's formation in 1940.
is that they demonstrate for the
Mr. Schumann is a member of
first time that potential electronic the Philadelphia and New Jersey
force can be harnessed in solid Municipal Bond Clubs, the Invest-

There

heating extensive uses in industry,

smoke in

This

cents.

So quickly are
going to be greater than was ininew
develop¬
Today, scores of industries are tially expected. The little device ments
being piled upon new de¬
using these devices for hundreds has progressed to the
point where velopments in electronics that the
of functions, as — for example—
it will replace many tubes in a field must
be
constantly under
wherever
such factors
as
time, teleset.
Originally
the
experts study to stay abreast. Hardly a
color,
density,
purity,
height, said it would replace only a few. week goes by that some new de¬
pressure, length, viscosity, weight, This later
development is going to vice or product is not heralded.
resistance, noise, vibration, etc., have far-reaching effects when We now
have, for example, the
must be measured,
analyzed, con- transistors go into large scale electronic photocomposition ma¬
trolled
or
regulated.
Electronic commercial production. Not
only chine called the Photon. It's the
control of machinery has almost
wm it serve to reduce the size and typeless
typesetter delivering film
universal application. So do time,
price of sets, but it will make pos- negatives instead of type slugs.
speed, temperature and level con- sible automotive as well as port- Minnesota
Mining and Manufac¬
irols. Other widely used applica- able
television. In fact a portable turing Co."just told of a
radically
lions include electric current in
battery operated receiver with a new material for audio magnetic
welding, various types of alarms five-inch screen was
among the tape it has developed.
From the
including fire and smoke detec- experimental equipment at a recent
University of Chicago comes word
tion, and other safety devices.
RCA transistor demonstration. So, of the use of radioactive
ragweed
The technology of electronics is too, was a "walkie-lookie" port- for medical research
on
asthma
continually finding new applica- able TV camera. Both could have and hayfever.

tions.

that

nounces

tiny transistor Samplers with the tiny recorder
important contribu- mingled with the viewers to elicit

ment

PHILADELPHIA, Pa.—Hemp¬
hill, Noyes & Co., members of
principal securities exchanges, an¬

the

wlU make

required.

Hemphill, Noyes & Go.

expected

learn how to best adapt clothing. General

ness men

elec-g^bis

tromagnetic equipment they have

the-

obvious use is the establishlarge scale commercial production
ment 0f sight contacts with plant
^

aullhv an^nrecisToTi Phot°graPhing of high speed or
dangerous operations. This indushpvnSMnrt C?^r trial market is expected to reach

than

It consists of two very thin
wires with pointed ends pressed

Adaptation of television to in- tists.
Even
dustry js just getting under way.

standards of
™

functions

tube.

still

relatively,
electronic
dewide
indus-

now

are

ma-

the

Walter Schumann With

many

these machines may also become would follow much in the pattern
*he master robot of the factory, of the vacuum tube, which in the
correlating and ^integrating the early days of radio cost $12. This
various electronic devices in the same tube now is available for
completely automatic assembly about 75 cents.
Singularly
enough k electronic
r^1_» the future. ,.
/
..The commercial production of authorities do not expect the tran¬
these machines probably has been sistor to eliminate the electron
more imminent asi the result tube. Rather it is expected that
the development of the transis- the market for tubes may even
ror*
mctor in their high cost, increase ultimately because tran¬
1S their numerous tubes.
One sistors will allow the development
of
electronic devices as yet un¬
J?assiv? elecdronl<: bram for the
Navy has more than 4,000 elec- dreamed of. The completely revo¬

comparison

would

capable of performing

scien- prices have ranged from $6 to $7.

tific and engineering data down to
simple bookkeeping units. But

tronic

ment

ADDRESS.

Washington St.

Brooklyn 1, N. Y.

The Commercial and Financial Chronicle

(1010)

decided

Churchill

Suns and Butter

In Britain

the

gram.

rearmament

All

life

his

Hitierisin

ing

year

sub¬

any

relieved of pressure on

tends

Thursday, March 5, 1953

spend

million

which

increase

ment's

effort

While

mopping

means

credit

back
of

into

1951

fighting

pumps

he felt impelled

expenditure

to lower

below

the

cuts

gram

would

program

execu¬

might

accentuated

unpopular

measures

have

been

sound

policy

bear

mind

that

the

British
to

public has put up with it
varying degree for more than

years.

initiated

rearmament

ever,

sition

was

by Mr. Attlee's Socialist
It was done, how¬

in face of the strong oppo¬
of
the Left Wing of the

Party and the fact that the Con¬
servative Government had to cut
the

original

the

rearmament.

quoted

program

Left - Wing
vindication for its opposition
Should

the

So¬

cialists return to power, Mr.

might

unable

Attlee
resist Left

Wing pressure in favor of further
substantial

cuts

that

balance

arms"

expen¬

diture.

The
ments

drive

Government.

lower standard of living
inevitably strengthen Left

ing

and

Any attempt at enforc¬

rearmament.

the

Wing Socialism and would there¬

would

trend

inflationary

become

should

pur¬

rearmament pro¬

the

arms

have

would

the full

politically it would have been
fatal. Those who preach austerity

strength.

the
figure fixed by his Socialist
arms

that

any

but

means

Internal

rearmament.

the

would

the

restrictions
by

inflation

entailed
of

and

level

by austerity. Economically that triumphantly

money

circulation

end

addi¬

resort

disinflation,

promptly

Government

Wing in control would mean

the
true

it would have become necessary to

Govern¬

the

gold reserve, in spite of its
increases, is barely above

scale danger level. To avoid the disaster

reduced

frustrate

tends

its

rearmament

For

object.

Left

of easily have brought it below the

maintenance

the

is,

its

defeat

fore

fact

considerations

are

pay¬
com-

year

in¬

Britain

that

It was
Minister

tion

would have entailed.

cry¬

payments

victory of Socialist Party with its

danger

been

increase.

tional

economic
maintenance

full

In chasing' power remains inflated,
spite of this, when returning to prices tend to rise, handicapping
the export drive. Were it not for
power after the General Election

the

financial

the

for

show

1953-54

Defense

Eng. —The

LONDON,
Estimates

Prime

the

of the grave

its

dangers

growing

voice

wilderness.

became

Government

Labor

Britain's

them in

drive and maintain
gold reserve.

the

lone

recent

cutting it in face of the

realization

proceeding at a liesurely
pace during the phoney war was
stepped up. While in opposition,
he
was
constantly urging
the

order to be able to assist in the

export

cided

level.

was

must

rearmament

in 1940 that the arms drive

year's expenditure is not possible.
Says, from viewpoint of the na¬
tion's
economy,
industries en¬
gaged

possioiiity ior maintaining ti e lepr^pment
pp<-> or»]v de¬

The

been

high

against
was

the

when

above the previous

rise

pro¬

reason

balance

adverse

would

For many years during the 'thir¬
his insistant demand on re¬

budget for the fiscal

1953-54, and points out

the

predecessor.

that he must have examined every

ties

Einzig discusses Britain's de¬

stantial

has

stands to

cuts

maintaining Britain's

strength

armament

fense

make

original

favor

arms

By PAUL EINZIG

Dr.

I-

£1,500

some

(in

addition

American

aid)

her

armed

serv¬

ices
the

during
months

from

31,

Mar.

This

1 9 5 3.

p r e s e nts
something
like
15%
of
the
national
r e

and

income,
well

over one-

the

third

The

Budget.

Dr. Paul Einzig

Paper

White

containing the
Estimates
points

penditure
possible.
planned

that

any

the

ex¬

1952-53 was not;
In fact the increase is <
to
be something like;
in

About £40 million

£120 million.

costs'

is due to the higher

of this

represents an
of
the rearma¬

million

£80

and

out
above

rise

substantial

increase

actual,

than

less

much

armament

plan

penditure

original re¬

1951, the ex-,
£4,700
million

completed

been

have

should

admittedly,
originally

was

the

Under

intended.

This

effort.

ment

The Government
decided, however, last year that
rearmament
should
be
spreajd

March 31,

over

1954.

and held ft
V

longer period

lower peak.

particular it was essential
from
the point of view
of the
Rational economy to relieve the

industries

engaged

•

other

and

industry,

engineering

rearma¬

ment, of part of the pressure im¬

posed

For, as a result
of the bal-.

them.

deterioration

the

ance

these

industries

increased

had

part

drive.

the

was

1951;

play

the
export
original plan,

industries should

the textile

that

during

payments

their exports while the
engineering
industries are en¬
gaged in rearmament. The over¬
seas
markets
for textiles have
become
much
more
difficult,
expand

however, - during 1952, and it has
become imperative
for the en¬

industries and
other
industries producing capital goods
gineering

their

divert

Otherwise

ports.
have

been

losses of
tion

the

ex¬

there

would

further

danger

the balance

would

payments,

have

realize it, but every

essential chemicals. Tomorrow, their con¬

clay Allied Chemical reaches

tribution to American life will be broad¬

not

may

of the

into her life in

just about everything she

Accordingly
last

the

tastes or touches

vides almost

lion, from

every type

for Allied pro¬

of basic chemical

through Allied's creative

research in many

fields.

used to make the necessities and comforts
of American life.

■

Today, Allied's six great operating divi¬
sions

imperilled

produce

•*'*.*

operations last year and in the past decade
are covered in our 1952 Annual
Report. A
copy

than 2000 of these

Highlights of results of Allied Chemicals

will be sent

pany at

request to the Com¬

61 Broadway, New York 6, N. Y.

£200 mil¬
£650

£850 million to

in addition

lion

reduce De¬

some

million

spent

million

higher

financial

than

during the
So there

hemical
Sulfuric and

question of relaxing the re¬
All that is hap¬
the

same

extent

Chemicals Vital

been

with

the

reluctance

that

Mr.

must

utmost

have

Tar

Chemicals, ■Resins
and Plasticizers, Roofing and
Building. Products, 'Bituminous

originally intended.

Other C6mrr>er-

cial Acids, Alums,Phosphates,,

Coal

pening is that it will not be in¬
to

National Aniline Division

year.

armament effort.

creased

General Chemical Division

current
no

Barrett Division

£100 mil¬

development.
In
spite
of
the reduction
the
amount to be spent on production
and research will be some £ 90

Government

year

orders by

fense

was

ened still further
1

sees,

country's economic stability.

decided

moment

gold through a deteriora¬

this

and

attention

Little Sue

American Progress

Road Materials

Sodium

and

fluorine Com¬

pounds, Reagent and Labora¬
Chemicals,. Insecticides
and Fungicides-

tory

Dyestuffs

and

Food

Colors,

Industrial Intermediates, Syn¬
thetic Detergents,

ticals

Pharmaceu¬

Volume 177

Number 5200

...

The Commercial and Financial Chronicle

(1011)

pelling

Conservative

ment

reduce

Govern¬

the

defense

tion

Central RR. Co. of N. J.

advantages of
session of
reserve

Britain

reserve.

caused

were

pos¬

she

could

afford

dis¬

temporary gold drain

by rearmament. It is be¬
safety margin is too

Other

Equip. Tr. Ctfs. Offered
An

really substantial gold

the

regard

inadequate gold

3%% equipment trust certifi¬

cates of

March

voke

major crisis.

utmost

should

safe

gold

able

reserve

order to safeguard

also

and

maintain

of the

importance therefore that

Britain
up

order

not

build

able

raise

defense to

level in accordance with the

quirements

national

re¬

security

and world peace.

certificates

yield

from

the

Press-

Co.

the

Inc.

Kidder, Peabody Branch
a

to be

standard-gauge

railroad

ment

estimated

$3,079,000:

steel box
tificates

cars.

cost

500

mutual funds sales office in Eliza¬

se¬

members

Milton

has

been

announced

Fox-Martin,

manager

pf the firm's central mutual funds

the

New

with

the

Trust

Co.

new

J.,

branch

Watts

the

Humphrey,
a

Jersey.
formerly

Bank

resident

community, has been named
of

the

new

Well-known

field,

Mr.

associated

Laidlaw
the

company's

New

Princeton
and

office

and

that
man¬

office.

investment

Humphrey

had

also

department. Alfred W. Hage, who

been

less

has been associated with Kidder's

Dodge & Co. and, prior to World

mutual

War

Issuance of the

cer¬

fund

department

since

1949, has been named manager of
the

authoriza¬

Jersey branch.

Schenley Industries

Frank L. Sundstrom,

Exchange, have announced

opening

ager

F. L. Sundstrom Joins

York

equip¬
not

all

new

50-ton

subject

ELIZABETH, N. J.—Opening of
new
Kidder, Peabody & Co.

beth,

are

PRINCETON, N. J.—Laidlaw
Co.,

second

3.65%,

following

Laidlaw & Co. Opens
New Princeton Branch

Princeton,

priced

are

2.50%

These certificates

than

are—R.

under¬

1953, to mature annually

The

cured

the

Stock

according to maturity.

only

sterling but

national

Inc.

prich & Co.; Freeman & Co.; The
Illinois Co.;
Wm. E. Pollock &

1954 to 1968, inclusive,
made Marcli 3 by a group
narrow that even a comparatively was
moderate drain threatens to pro¬ headed by Halsey, Stuart & Co.
the

cause

members

writing group

offering of $2,460,000 of the

Central Railroad Co. of New Jer¬
sey

Ly the Interstate Commerce

Commission.

expenditure shows the grave dis¬

with

II, had served

Clark,

officer

and director of the General Rein¬

Group.

surance

firm

has

Burton,

been

tive

Cluett

Ralph T.
Heymsfeld,

President

Schenley In¬
dustries, Inc.,
it

has

been

announced.
Sundstrom
had

been

general
ner

part¬

of the bro-

kerage
since

firm

its

dent

or¬

resi¬

East

Orange, N. J.,

OF
.

ANNUAL REPORT

■-

Sales and
Profit

operating

revenues.

....

$490,183,000

$502,027,000

Total

receipts;...

the

J,.. $496,539,000 "

profits taxes.. A

40,549,000

-<40J 12,000

.....

Other taxes

643,000

1952
•

66,159,000

12,731,000

12,409,000
*

Wages and salaries paid..'i\............
Dividends paid
A .....
;

115;135,000':

121,654,000
26,569,000

•

common

stock—

26,569,000 V

Net income

8.91;

5.93

expenditures
during the year were for expansion j
and new projects, the highest ratio \
in
many years; substantial addi- s
tional
expenditures on new develop-1
ments are
anticipated.
y
f
Major projects on which expendi-/

paid

benzol,

3.00

Property Account

Dec. 31,1952

Dec. 31,1951

$548,106,000

$470,958,000

193,941.000

220,734,000

26,418,000

26,737,000

Current Assets

Investments, Deferred Charges and Other Assets,
Current Liabilities

70,709,000

Bank Loans

50,000,000

Depreciation and Other Reserves.
Replacements (surplus reserve)
Capital Stock and Surplus

Increased Cost of

Stockholders

313,770,000
40,000,000
271,788,000

27,850
27,800

26,800

end of year

approximately 2% below

record level of 1951 due to adverse affect

made

1952

include (

and

reporter
football

coached

University.

brokerage

served

had

Indiana

named

been

All-American tackle

early months of 1952 of the decreased

during his

sehior year at Cornell University.

will

have

his

office

the Empire

State Building.

New York Stock Exchange
Weekly Firm Changes
The New

York

Stock

Exchange
following firm

has announced the

changes:
Transfer of the Exchange mem¬
bership of T. Ferdinand Wilcox to

Frederick

Stafford

will

Transfer of the Exchange mem¬
bership of Walter Roesler to Wil¬
liam

Vesce

will

by the Exchange

considered

March

The reduction in income

chlorine

from

Frank

Andre

Sundstrom,

•

general

became

and caustic

Feb. 28.

production of soda ash, chlorinei
soda, synthetic phenol,
and roofing materials. Con¬
struction was started on new
plants
for ammonia and urea, ethylene?
oxide and ethylene glycol, a high
analysis fertilizer, and a new syn-'
thetic fiber of the polyamide
(nylon) type.
Development

80%.

profit

commercialization of

limited partner effective

Henry L. Bogert, general part¬
in

ner

came

Eastman, Dillon & Co., be¬
limited partner Feb. 28.

Charles

partner
March

became

Mallory,

general

Adee

Chas.

Quincey & Co. be¬
partner, effective

limited

March

pany's research staffs were
and additional facilities

Manley, Bennett Adds
DETROIT, Mich.—Manley, Ben¬
nett & Company announce the ap¬
pointment of Wade Sloane and
John

Vernier

registered

representatives of the firm, eifective

immediately.

Both
the

men

addition

experienced

are

securities

business

brings

the

their

firm's

sales

force to 22.

new

ly acquired larger offices at

ketable securities of

Buhl

profits taxes de¬

creased due to the decline in sales and to

hourly wage rates
higher freight rates and other costs.

highest bracket, taxed at

over

1952, which included

capital gains taxes on sales of mar¬
approximately 16 cents
per share, was about 1% below the 1951
figure.

number of

processes and products based
work of research staffs. Addi¬

tional developments are reaching
pilot plant stage and it is expected
that operating results in future years
will show increasing benefits from
the expanded research program.

Solvay Process Division

Semet-Solvay Division

sold

During 1952 the Company
some

marketable securities; at

the

end of the year, items in 'the Mar¬
ketable Securities account, repre¬

Materials, Methanol, Formal¬

Coke and By-Products, Coal,
Gas Producing Apparatus,
Wilputte Cpke Ovens,. Synthetic-'Wax and Other Poly-

dehyde

ethylene Products

Anhydrous Ammonia, NitroSolutions, Urea, Fertilizer

senting all items owned by
-

».

.....

'••••,

.Alkalies,. Chlorine, Calcium
Chloride, Ammonium ood Potassium Compounds, Alkali
Cleansers

book

Quoted

mar¬

ket value at the end of the year was

$60,870,202.

Detroit

Bennett
of

the

Stock

Company,

&
New

York

Exchanges, recent¬
1100

Building.

Hunter Sees. Corp.

Opens Uptown Branch
Securities

Hunter

has

announced

opening of an
in
the
Nelson

New York

direction

Frank

Lee,
C.

City,

Albert

Associated with the
Albert

Corporation

the

office

Building,
the

the Com¬
the New

pany which are listed on
York Stock Exchange, had a

value of $20,554,693.

Manley,
members

uptown

Investments and Securities

and

after

of the

out

Co.

limited partner effective

Robert A. Love, general partner

came

increased
provided.
An extension to a product applica¬
tion and technical service laboratory
was
completed and placed in service
at
Edgewater, N. J., and additional
laboratory facilities were acquired
near
Phi'adelphia, Pa. for conduct¬
ing the research and pilot plant work
formerly performed at a Philadel¬
phia plant.
The Company is proceeding with

came

partner in Burton, Cluett & Dana,

emphasis on research is being
continued and in 1952 the Com¬

largely offset
by substantially lower Federal income and
excess
profits taxes due mainly to the fact

fluoride, and expansion of facilities

The

was

for

Research and

28,000

partnership

Saint-Phalle & Co. Feb. 28.

aluminum?

and

eral income and

oen

12.

Carel W. Van Heukelom retired

Net income for

Nitrogen Division

con¬

sidered by the Exchange on March
12.

steel strike. Income for 1952 before Fed¬

continued increase in

the

company's New York headquarters

that all of the decrease in income

and to

editor,

activity of a number of industries served
by the Company and to the affect of the
excess

80th

and

the

Sundstrom

newspaper

Operations

79th

entering

business,

coke

92,871,000

322.231,000
40,000,000
285,525.000

Employees

Sales in 1952 were

$10,495,000. About 80% j*

construction

plants to produce phthalic an-j
hydride, polyethylene wax, synthet ic j

$4.58

$4.55 ' v

;

nearly twice the 1951 *
Property retirements in \

were

78th,

new

| Total taxes
Dividends

were

of the

tures

Per share of

future.

additions.

$106,708,000

40,305,000

near

Gross additions to the property ?
account in 1952
aggregated $87,-1

$506,909,000

$ 80,417,000

Net income

excess

inability to obtain scarce al¬
loy steels and other critical mate¬
rials. With die easing of material *
shortages, it is now expected that ?
these projects will be
completed in •

4,882,000

4,382,000

Income before Federal taxes

Federal income and

due to

1,974.000

Interest, dividend and other receipts

1952 but completion of

major projects was delayed

I
1,951

sale of securities

gram during
several

the

Before

Substantial progress was made on
the Company's construction pro¬

■
in fl

sey

Sessions of Congress.

Construction

CORPOSAUO*

1952

Sundstrom

the Eleventh District of New Jer->

DYt

Frank

he represented

Allied
Chemical

SUMMARY

Dana,

Administra¬

appointed

1931.

VA.'

brokerage

Assistant

ganization

formerly

general partner in the

Pierre

under
Kevet.

office

new

Rossini,

are

and

Taussig.

Sidney Walcott Opens
BUFFALO, N.
Walcott

curities
41

St.

—

Sidney S.

engaging in the se¬
business from offices at
is

Catherine's Court.

♦

", y

(1012)

-v'

The Commercial and Financial Chronicle

*rr/'/s/*

SsV/A'SA

Stores Will

New

"Do It Yourself"
—A New Industry
By ROGER W. BABSON

believe

Yourself"

Mr. Babson calls

attention to

rDo-It-Yourself"

movement

has

hich

young

small

high

itabor and materials costs.

Lists

families to

decorations

and

furniture
become

products made

among

for

Looks for "Do-It-

in homes.

set

Yourself" stores

are

forcing

some

lumber

would

interest,

commission

dealer

sell

houses.

almost

constantly increasing young couple to at least hear your
shorter
hours, combined with
story. It also might be combined
higher prices, which are largely
result

shorter

hours,

are

developing
«

industry

new

f expect to

with the real estate business. Be¬

fore

building

secure

the land.

house

one

must

adver¬

newspapers.

much more local
advertising of this "Do-It-Your-

self"

idea.

afraid

Many

newspapers

dealers, and other
advertisers. I, however,
this to be shortsighted,

furniture

present

Stolle,

A. Saxton &

Board

Governors

tional

Association* of

the

Na¬

Chairman:

President

every

depends

NASD

Blyth

Members:

John

George

Vice-President
&

Inc.,

Co.,

Lombardo,

Stubbs,

Inc.,

Jr.,

Smith

Birmingham,

Murray Ward, President of

Collins,

Collins & Co.,

Portland, Ore.; Claude T. Crockett

DuBois,

Bunn,

William

Members:

head of William J.

Co., Phila¬

George,

Harriman Rip¬

ley & Co., Inc., Chicago.

Illinois
liam

in Wertheim

George

York;

Company,

The

Clhicago;

Wil¬

Vice-President

Potter, Jr., Senior Vice-

President

The

Corporation,
E.

Houston; Allen

partner

New

Noyes,

Bioren &

Edward

Chairman:

Vice-President of

Vice-

Co.,

Conduct

Committee

of Crockett & Co.,

Devlin,

New York.

Ala.;

ideas.

Paul

National Business

Securities

Committee

Finance

delphia;

new

Inc.,

lowing committee appointments:

present adver¬
ultimately on the
growth of the community, which
depends on the adoption of all
and

Co.,

Dealers, Inc., announced the fol¬

partner in

tiser

Carl

City, Chairman of the

New York

because the future of every news¬
paper

—

are

fending the local builders, paint¬
ers,

NASD Announced
WASHINGTON,

push it for fear of of¬

Angeles;

Fulton,

Wallace

and

Executive Director.

look into the future,

see

Hill Richards & Co., Los

Two Committees For

why

not sell furni¬

should

local

the

In fact, as I

e'very believe

The

the

tised

many

suggestion is that you

salesman

and

customers

and

hours.

indulge in inexpensive

"Build-It-Yourself"

open.

builders

house

were

and healthful sports.
Another

ouse

shorter

costs

higher

resulted

open.

wondered

often

have

from

stores

Consider

Something to

Open

will see "Do-It-

chap and wanted to open ture and home furnishings. Or
specialty store, I would why furniture dealers do not sell
This; is
a
combination
enter this field, combining some houses.
appeal
to many
sporting goods with it. The same which should

factors

you

Thursday, March 5, 1953

...

First

Boston,

Boston

and Harold

Wood, President of Harold E.

Wood &

Co., St. Paul.

—namely, the
"Do-It-Your¬
self" industry.
For
the

time

manufac-

turers

Helping

wall¬
etc., in

paint,
paper,
order

pro¬

the

local

painters

and

tect

paperers,

re¬

fused

ad¬

vertise their

products for
the housewife

Roger W. Babson

Commercial
Credit Company
BALTIMORE

herself.

use

Now, however, you will find large
advertisements in leading maga¬
zines

urging people to "short-cir¬

cuit" the local artisan.
further

self"

"Do-It-Your-

this

manufacturers

movement,
sell

now

already

wallpaper

hang, with the blank margins cut
off. They are selling paint rollers
to take the place of brushes and
a

paint with

new

for

rubber base

quick and perfect application.

What

Gillette

Consolidated balance sheet

did

old-

the

this

razor,

doing

new

move¬

brushes

and

of December 31, 1952

ASSETS

CURRENT ASSETS;
Cash in banks and

U. S. Government

$ 65 540 175

Obligations.

13 632 383

Other Marketable Securities

$ 79 172 558
Less Reserves

Accounts and Notes Receivable:
Motor and Other Retail
.'

Furniture

and

121 558 088

Open Accounts, Notes, Mortgages and Factoring Receivables

For several years

been

able

Total.

families have

buy unpainted and
knocked-down furniture; but the
prices were high on the latter.

48 598 257

3 838 003

Today, however,

needs to buy
only ply-board and certain metal
clamps from
a

one

lumber dealer. For

small fee the lumber dealer will

cut the

pieces

people

building their
own homes. Two couples will
buy
adjoining lots, make joint con¬
young

for

then

the

foundations,

ahead

$ 41 084 860
14 012 727

Accounts and Notes

840 419 670

$ 55 097 587

Other Current Assets:
Trade Accounts and Notes Receivable

"Manufacturing Companies"

Premiums Receivable-'Tnsurance Companies"

Inventories-"Manufacturing Companies".

7 454 341
494 123
13 436 814

Total Current Assets

385 278

015 724 408

FIXED AND OTHER ASSETS:

big development has been

tracts

Total Reserves

needed for tables

and chairs.

•The

$895 517 257

Less Reserves for:
Unearned Income
Losses

707 991

$570 189 287
151 333 622

Motor and Other Wholesale

Sundry Accounts and Notes
Homes

464 567

Direct Loan Receivables

paints.

75 211 469

hand

Marketable Securities:

fashioned
ment

different

can

be bought

plans. These plans
with

complete

ing,

cutting

and

with

details for
and

Land, Buildings, and Equipment "Manufacturing Companies"
Company Cars—used by Representatives

...;

;

Cash Surrender Value Life Insurance

8 470 626
1 478 658
97 693

Repossessions—at depreciated values

10 708 185

661 208

DEFERRED CHARGES:

Prepaid Interest and Discount
Prepaid Insurance and Expenses

;

4 500 892
1 019 227

520 119

.$1 031 952 712

order¬

erecting

the

LIABILITIES, CAPITAL AND SURPLUS

house. For heavy work, when two

men, are needed, they help
other.
The
only outside
needed is

plumber. This

plain why

fitted "The
t4oet
d

prominent columnist
of

Physicians
hbies
'bbies

ist

£
v

millionaires

plumber!"
Practical

help

may ex¬

new President's Ca-

consists

one

each

are

instead
are

prescribing
pills. In fact,

now

used

that

drug stores sell Hobby
agazines. These magazines urge
aful hobbies and show how fur-

rHure, toys and other things
I

may

made at home.

oosters

the

They are great
"Do-It-Yourself"

idustry.
Not
i

only does the hobby indus-

benefit

the

nation's

health,

I ut

ex-

not

by it parents set a fine
mple to their children. It

only is better for the kids to
their

see

Dad

working — instead of
playing golf—but it enables the
father and
and

boy to work together

become

better

acquainted.

Hence, the social and educational
advantages.

Notes

Payable—Unsecured Short Term
Payable:
Manufacturing and Selling Agents
Sundry
Due Customers only when Receivables are collected

577 165 500

Accounts

Credit Balances of

$ 12 156 081
12

605

189

9 029 051

Accrued Income and Excess Profits Taxes
Other Taxes

27 474

Customers' Loss Reserves

24 370 585

607

3 357 933

Total Current Liabilities.

Hobbies

CURRENT LIABILITIES:

666

UNEARNED PREMIUMS-"INSURANCE COMPANIES".

993

446

158 946
252

039

RESERVES FOR:
Losses and Loss

Expense—"Insurance Companies"

6 698 348

Fluctuations in Security Values.

575

258

273 606

124

000 000

UNSECURED NOTES:

Notes, 2% % due serially—1954-1957
Notes, 3f|% due 1961
Note, 3% due 1963

rt,..

7%.

$ 34 000 000
40 000 000
50 000 000

SUBORDINATED UNSECURED NOTES:
Notes, 3% due 1957
Note, 3y2% due 1958
Notes, 3.95% due 1964

$ 25 000 000
10 000 000
25 000 000

MINORITY INTERESTS IN SUBSIDIARIES,

58 829

CAPITAL STOCK AND SURPLUS:
Common Stock—$10 par value: Authorized—6,000,000 shares
Issued and Outstanding—4,564,334 full shares and 172 shares
of fractional scrip
Capital Surplus
Earned Surplus

$ 45 645 060
15 369 499
73

194 733

134 209

292

$1 031 952 712

Volume 177

Number 5200

The Commercial and Financial Chronicle

...

mzmziy,

i ;<ioi3)

will

give its

from

interpreta¬
developments.

own

tion of future

75%
of

ance

the

50%;

fourth

and issu¬ shares which
group

price decontrol orders found

The

general market is now
tightening position. ready response in the market
last week. Volume jumped to
Breaking the December-Feb¬
the highest level in over a
ruary lows around the 279281 area for industrials and year, 70% of the issues that
in

106-107

for

area

would leave doubts

traded

rails

while

to the

moved

trend.

term

Breaking
The impact of Stalin's ill¬
through the downtrend of the
ness on the trend of world af¬
past two months which would
fairs will be puzzling until
be accomplished by a rally
near

there is
sia.

more news

When

from Rus¬

above 285-287 for

market is

and

stock

confronted with such

certainty,

Wednesday.

reduction

The

new

the

minded

averages

their

long-term (six
profits in coming

months)
weeks.
Rails

the

for

based

approached

to the de¬

the demands of the

unions

handicapped

are

uncertainty

cision

traders

also checked their enthusiasm

the

take

the
advance
selling that is still

technically

•

decline

will, for the first time, be able

being done to raise funds for
income tax payments. Many

highs

October.

in
that

wage

increased

increases
produc¬

These demands
are
the downtrend line that has tivity.
substantial.
Unfortunately,
not been established during 1953.
the final judgment is up to
large. Industrials were up At present, this trend is
one individual, Professor Paul
only $2.83, rails 83c and utili¬ around the 286-287 level. Ar¬
ties 16c during the week. This tificially depressing is the fact Guthrie, who is acting as ref¬
was due to the fact that
the
market
declined eree, and his decision is final.
buy¬ that
Since the hearings have beea
rather
sharply
six
months
ago
ing was most aggressive in the

Strangely enough, the gains

would

completed.

course

higher made

1952-53.

give hope thdt the correction
be¬ of the election rally had been

did

In due

28% of the stocks that

late

industrials

rails

able to advance,

low

Purchasers

Restraining
was

its

not included

Overhanging Tax Payments

un¬

generally

cautious

comes

for

111-112

for

were

are

general market aver¬

ages.

the

averages

were

margins secondary and lower priced

from its

early September level

concluded

decision

the

come

at any

have

rail section,

on tne

can

time, and should
important'* influent
'

Speculative Flavor
The
most

market

had since the
Low

SOUND

CREDIT

SYSTEM

importance to the economic welfare of

A few

facts,

December 31,

year.

1951

•

$2 783 942

471

604

516

Gross Insurance Premiums,

278

791

102

223

306

115

875

129

397

120

118

941

880

Prior to Reinsurance...

Net Sales of Manu-

facturing Companies...
Gross Income

market

Total Consumer Credit

creased

350

470

937

240

301

163

223

353

United States and

late last

765

000

lative

outstanding December

Salaries, Wages,
46

822

625

518

having

MILLION

DOLLARS

the

fore¬

was

upturn

which

started

In the

summer.

past*

to handle specu¬

phases

the market

stay with them as

the indices of -low
issue advance faster
than the general averages, as
they have been doing since
long

priced

the close of 1952. When such

American is his own best Credit
why Commercial Credit is proud
made over TWO BILLION NINE

HUNDRED
581

Commissions

evi¬

suggests in¬
participation.

turn

has been to

falters, it is usually, a

move

Man. That is

000

the best way

The average

United States Excess

the

been

turn

accounts

age

for

free credit balances in broker¬

Disposable Personal Income for 1952, com¬
pared with 7.15% for 1940. Automobile Instal¬
ment Credit alone was only 2.14% on December
31, 1952, compared with 2.28% for 1940.

United States and

also
public

latter

The

Total

Profits Tax—Credit

has

the

shadowed

was 9.87% of Total Disposable Personal
Income for 1952/compared with 10.78% for 1940.
Total Instalment Credit alone was only 6.80% of

Operations, before

Canadian Income Taxes

which

year.

31, 1952

Net income from Current

Canadian Income Taxes

since

dent

Disposable Personal Income for 1952 was
$242,900,000,000, compared with $75,700,000,000
for
1940.
Total Consumer Credit outstanding
December
31,
1952, including all Instalment
Credit
was
$23,975,000,000,
compared, with
$8,163,000,000, on December 31, 1940. Total In¬
stalment Credit outstanding was $16,506,000,000
for 1952, compared with $5,417,000,000 for 1940.

Gross Finance Receivables

$2 907 587 057

country

highest levels
This, in part,

depressed sections of the

"Total

CONSOLIDATED OPERATIONS

Acquired.............

our

prime

standing under such system should be in proper
proportion to current Total Disposable Personal
Income (after taxes).

1952 and 1951

1952

of 1951.

and its citizens. The Total Consumer Credit out¬

summer

their

over

represents

the

has

priced shares last week

reached
in

now

speculative tone it h&s

sign that the general market
is in

available

during 1952:

vulnerable condition,

the rail section.

TO MANUFACTURERS to increase their work¬

1951

1952

$11 873

$12 197 428

Companies

While there

474

tion

broaden their distribu¬

through distributors and dealers.

tainties

.
,

Insurance

Companies...»

3
4

Manufacturing Companies

531
085

614

265

265
575

108

RETAILERS for "floor planning" their mer¬
chandise and thereby stimulate their sales and
TO

305

accelerate
Net Income from Current

•

$19 713

$19 814 307

887

$ 4.34

4.33

United States and
Canadian Taxes

on
.

4.94

5.53

Book Value per shareCommon Stock*.

now

excess

of One Billion

;

Dollars

*Adjusted for distribution of
July 1, 1952.
*

one

27.50

share for each share held

activities

Commercial

Credit

Company

are

operated through three divisions, consisting of its Finance

Insurance Companies and

Companies,

Manufacturing

CHAIRMAN

paying excess profits taxes

Companies.
acquired by its Finance Companies,

Earned Premiums of its Insurance
Sales of its
for any

year

ings

Companies and Net

Manufacturing Companies

were

larger than

in the history of the Company.
.

Detailed

Report is Available Upon Request

CITIES

only

ported

earnings.

times

re-

They

are

ings before EPT.

OF THE UNITED STATES AND CANADA
OVER ONE BILLION DOLLARS IN

IV2

selling

selling less than 5 times earn¬

•

would have been 55'%

higher. At present, they are

PRESIDENT

MORE THAN 400 OFFICES IN PRINCIPAL

$37.77. Without the EPT earr¬

•

Gross Receivables

stocks—Bendix Aviation,

Milling, Clark Equipment,
Douglas Aircraft, Ex-Cell-(J,
Gen.
Railway Signal,
ani
Thompson Products. Per
share earnings of these issut.s
totalled $70.89 in 1952, after

by helping America buy what
through the continued judicious extension

of credit.

JLhe

is evidence that

if there
excess

Bridgeport Brass, Briggs ds
Stratton, Chrysler, Cincinnati

This will be done

it wants

rally after this
should

good. It could be substan¬

ten

its experienced personnel to help American
Industry to produce and distribute and Consumers
to buy their products and thereby further improve
the American standard of living;
and

29.40

......

seasonal

profits tax will be
allowed to expire on June 30.
The influence of this tax is
well shown on the following

Commercial Credit will continue to devote its

resources,

few weeks, the outlook

the

■

Income—per share*

uncer¬

for

tial

while

Net Income per share on
Common Stock*

still

to the trend in the

CONSUMERS

to help them buy, and use
paying for. automobiles, appliances and time
and labor-saving machinery. Also, to help them
budget expenditures or meet emergencies with
"Small Loans" repayable in instalments.

correction is completed

delivery.

Operations

are

TO WHOLESALERS
Finance

EPT-Lapse Beneficiaries

ing capital, their capacity, and their volume; to
buy for cash or discount their purchases.

NET INCOME

[The

RESOURCES
k

article
time

views
do

coincide

Chronicle.
j-u

not

expressed
with

They are

-Hir,

this

necessarily at any

mifhnr

those

of the

presented a»
nYl.hll

tions

Foreign Trade Under the

of their

tion

the

income

American

maintain

abroad

commercial basis without the interference and competition

from

countries

1953 will be about $12.5 billion,
year. Looks for greater
competition from Germany and Japan, and calls for clear

management
and t fgrnjers
be earnestly consulted.

and

alike will

1953

might

and

economies

the

latest

Illinois

Eastern

that coal

Chi¬
had

has

comments

requirements
installations

regarding the vast improve¬

ment

there has been in operating

the

new

adjacent

recent

For

years.

one

lines

opera¬

than

any

both

Earnings

the

stock

common

energy

service

area.

longer term basis, moreover,

developments

power

the

to,

expected to attract

are

on,

company's
more

pointing to further expansion

earning power the question of
possible inauguration of dividends

came to $4.65 a share,
capital and sinking funds,

year

before

the

diversified general industry. With
traffic
and
operating prospects

like period of the company's history.
last

Eu¬

favorable

atomic

for
in

make

been

assistance

tonnage will continue to

expand sharply in line with power

tions in the past three years have

which in

of Western

its

financing,

thing, it is pointed out that

so-

to one billion plus

substantial

with

trust

interesting

results

purchases by our

run

refers

item

offshore

cago
some

in
third
favorable
their'foreign in¬

Department of Defense

S. will not devaluate the dollar.

Let me say, I am not one of
those who feels that either of our

third

The

called

connection

equipment

vestors.

$700 million less than in previous
that U.

domiciled
which
give

tax treatment to

Decries double taxation of foreign income,

and predicts U. S. exports in

statement

Chicago & Eastern Illinois

operating
competitive

position with national companies
and branches and subsidiaries of
companies

the

only

companies

on a

tax funds.

taxable

negotiations

own

that foreign
American
companies

where earned. It is our
belief that only in this way can

policy of current Administra¬
tion as expressed in President Eisenhower's State of the Union
Message, and finds them generally favorable. Warns investors
own

Council

the

field,

country

Council, Inc.

Mr. Quirk reviews foreign trade

abroad should be free to conduct their

tax

should

Foreign Trade

competi¬

funds.

tax

own

continues its position

By JOHN QUIRK*

Vice-President, National

commercial basis with¬

out the interference and

New Administration

their

Thursday,'March 0* 4953

T^eCommercial and Financial Chronicle

(1914)

the

stock

common

has

natur¬

limit
compared with $3.80 on a similar ally arisen in the minds of many
political parties is less friendly
"Second:
Doing whatever our these purchases to products which
to foreign trade than the
basis in the preceding year. Even analysts.
other. Government can
properly do to are not seriously competitive with
This
nation's
after allowing for the capital and
The company has two classes of
encourage
the flow of private our normal peacetime production
international
sinking funds the common share stock—383,751
American
shares
of
investment
abroad. is an
$2.00
important
one as there have
trade
is
so
earnings last year came to $3.76. Class "A", on which the prefer¬
This involves, as a serious and been
plans proposed to channel
vital
to
our
explicit purpose of our foreign into offshore procurement such
Basically, far more important ential dividend is cumulative to
defense and
policy, the encouragement of a things as replacement parts for than the mere figures as to share the extent earned, and 411,166
economy, and
shares of common. There has been
hospitable climate for such in¬ U. S.
equipment which logically earnings is the way in which these
so
basic to a
vestment in foreign nations.
dividend arrears on the Class "A"
results
were
achieved.
All
in¬
should go to experienced U. S.
sound foreign
dices of operating efficiency have stock but these were satisfied last
"Third:
Availing ourselves of producers.
policy in these
shown steady betterment in re¬ year by issuance to holders of an
facilities
overseas
for
the
eco¬
The
fourth
category of help
dangerous
nomical
years.
The
transportation equivalent market value of com¬
production of manufac¬ mentioned by the President was cent
times, that the
mon
stock. This Class "A" stock
tured articles which are needed
greater imports of raw materials ratio, for instance, was cut to
Administra¬
reservation

The

rope.

tion

power

must, of ne¬
cessity, do all
that

are

which

not

our

quantities

seriously competitive with
normal

own

can

promote

for mutual defense and which

ex¬
John

panding inter¬

Quirk

peacetime production.

"Fourth: Receiving from the rest
the
world, in equitable ex¬

change

for

what

supply,

40%

represent«' commodities

essential

to the

domestic

functioning of

which

economy

our

either

tities.

outside

tities."

our

field, the foreign

own

the

United

States

$34

some

adequate quan¬

the first reference, I

have all noted,

with

billion,
including services, has satisfaction, that Administration
long since come of age and is Congressional
leaders
have
in¬
now
such
a
significant segment cluded in their "must" legislative
of our economy that
any suppres¬ program consideration of the re¬
sion
in

neglect of

serious

result

must

repercussions

the

upon

domestic economy.
President

newal

Eisenhower, in his
Message, said:

State of the Union

"our foreign
policy will recognize
the importance of profitable and

the

Agreements
toms

Reciprocal

Trade

and

program

Cus¬

Simplification bill.

With respect to the second

the

encouragement

private

portance"

vestment environment abroad and

traded

Cer¬

our

people

have

could

wanted subsidized

never

ports

approve.* We

and

the, grant

ex-

shipments

that resulted from Lend
the war

Lease in

period, and from the Mar-'

shall

Plan in

the postwar period,
requirements of our coun¬

were

try's
and
a

military
not aid

great

rifice
to

assist

foreign

our

extent

made

-were

and

at .considerable

the

domestic

military

nomic potential of

shipments

the

sac¬

economy

and

eco¬

the

Foreign Trade

statement
nomic

Foreign

last

position
"With

view

groundwork

initiative in creating broader
kets

and

mar¬

dependable cur¬
rencies/to allow greater exchange
of

goods

and

themselves," in
conditions
such

"First:

us."

help

among

order to establish

that will

help ' from
cited

services

'.'invite vital

The

President

customs

our

further recommend that the Con¬
gress take the
Reciprocal Trade

Agreements Act under immediate
study and extend it by appropri¬
ate

legislation.
not

guarding

This
objective
ignore legitimate safe¬
of domestic industries,

agriculture

and

In all executive

mendations
•*An

Louis

address

labor

standards.

study and

this

vigorous

Louis, Mo., Feb. 19,

.laying

the

Trade

nomic

1953.

the

St.

pursue

treaties

Commerce

Eco¬

and

Development, tax treaties,

other

agreements

conducive

The

"If

favorable

mates

are

investment

created

Government

our

clear,

word

must

and

American

public

available

made

which,

under

door

made

capital

the

abroad,
it

action,

funds

that

will

for

not

projects

conditions,
by private cap¬

proper

could be financed

will be

cli¬

make

toward

progress

opening the

entrance

private

from

abroad,
and
par¬
ticularly from the United States,
so
long as other nations believe
that they can

draw upon Ameri¬
public funds, and can thereby
escape
the obligations and selfcan

discipline
and

which

use

are

attraction

private capital would

entail."
We

the

carefully studied

and

are

that,

being
as

result, investors in the future will
be

free

conduct their

are

costs
as

coffee,
such

tea

and

This

20%

which

cocoa

accepted

part

perma¬
accom¬

and presumably
saving in costs. In

its

gross-ton

Balance

continued.

dividends
there

are

the

far

been

is considerable

financial needs. A

$1.8
nual

debt
years.

these

running about
to $1.9 million an¬
is in excess of an¬

This
and

depreciation

covered

by only a
margin by combined de¬
preciation
and
Capital
Fund
modest

diesel

the

trust

in recent

equipment

charges

con-^

the company's
fairly substan¬

equipment

million

nually.

The management attributes this

serial

maturities will

•,

^highly favorable trend to

feeling that

For the next couple of years

accel¬

common

concerned, however,

This is because

per

years the
in operating

will

comfortable earnings
position the time is not yet ripe.

train. In most recent
has

this

despite the

net-tons

pace.

appears

but that

tial

doubled

siderable degree to

indicate that

question

kas been built up

about

Dieselization

Council's

there

just

are

Export Prospects in 1953

group

miles

regular $2.00 annual

train hour by more than 50% and

efficiency

living.

Studies conducted

sub¬

nent,

erated

our

little

3!/2

stantial,

per

represents
items

about

represents

rate of improvement

non-competitive

power.

lines

was

charges

completed in May, 1950. Extensive

which

$2,025,000

by the U. S. mechanization of road and equip¬
of
Payments ment maintenance have also had

estimated

are

year.

an important role in the
earnings
With Pledger & Company
picture. Getting a bigger payload
(Special to The Financial Chronicle)
$12.5 billion, or $700,000,000 lower ; on the trains is, of course, a major
LOS ANGELES, Calif. — John
than in 1952. In reaching their factor in rail
earnings, particular¬
estimates, our group made two ly when wages and fuel costs are W. MacKusick has become af¬
basic assumptions: ;
mounting steadily. The tonnage filiated with Pledger & Company,

our

commer¬

cial exports in 1953 will run about

negotia¬

That

(1)

there

would

further deterioration in the world

carried

■.

while

That there would be

(2)

con¬
;

tinuation

programs

now

defense

other

and

determines
the

erated,
trains,

political situation, and

underway.

not

the

largely

length

expenses.Mt

does
twice

near

not

West

Exchange.

the

Seventh

Street,

Angeles Stock

Mr.-. MacKusick

was

formerly with Revel Miller & Co.
and

any¬

much

210

members of the Los

op¬

cost

100-car train

Inc.,

revenue

trains

determines., the

where
handle

the

number

Walston, .Hoffman &

win.

Good¬

50-car

as a

■:
'. ■'
'
I
Additionally, the group took the .train
although the longer train
Joins Stewart, Eubanks
position that there would not be
produces twice the revenue. ".://
any
appreciable change in the
(Special to The Financial Chronicle)
As part of its program the com¬
general price level from that pre¬
SAN : FRANCISCO,, Calif.
pany
eliminated/ a self-imposed
—
vailing at the end of 1952. •
50-car limit formerly applied to Clarence
O., ^Amonette, Jr. jlhas
become
j associated with Stewart,
Any
developments
materially .certain, through /freight /trains.
affecting the continued validity of Dieselization, which -enlarged the Eubanks, Meyerson & York, '216
;

one

of these

factors, ob¬
bring/about con¬

siderable change in the volume of

capacity of all freight .Montgomery Street, .members of
trains, made possible; the elimina¬ the. San Francisco and Los An¬
tions of a number of trains,. both geles Stock ;Exchanges. He was

international trade.

local

viously

could

•"

weight

;

and

total

of approximately $19.2
(exclusive of strictly mili¬
tary aid) is expected to be made

through,, while at the formerly with Brush, Slocumb &
increasing the speed Co.
through trains. The im¬

time

same

billion

currently

provement in operations h^s not
been confined to freight service.

available- to

countries during
of

1953

sales of goods and

foreign
a

result

services to

the

Through elimination of

tial number of unprofitable

trains,

United. States,
unilateral ^passenger train miles . were retransfers consisting of private re¬ educed more than .36%
between
mittances and governmental eco¬ 1947 and 1952. As a result, the
nomic aid and other
net

expenditures,

United
mental

States,
loans

This

sets.

and

net

govern¬

short-term

as¬

is approximately
the. amount made
available during 1952, exclusive
of strictly military aid.
the

sum

same

In view of the special nature of
the defense items financed
the

company

states that

private investments from the pocket basis there

Mutual

the

under

Security Agency
Balance

pro¬

Payments

group

decided this

year

to exclude

these

items

their

computa¬

from

tion.

its

basis

States

expenditures

Continued

page

actual

business

the

out-of-pocket

ex¬

passenger

Hoffman

Financial Chronicle)

to The

LINCOLN,

Neb..

has

—

Trust

Edwin

become associated

with Wachob-Bender

Corporation,

Building.

out-of-

1947-1952,
inclusive, in which they failed to
show a profit on this business. In
no month since April, 1949 has the
company failed to make a profit
on

only five

months in the six years

Specialists in

Guaranteed
Railroad

Securities

penses.

is probable that the full op¬

portunities
omies

have

realized.outlook

United

on an

were

Joins Wachob-Bender
(Special

substan¬

the

gram,

optimistic that the fore¬

recommendations

lower

in such form

balance

such

to this end.

recom¬

Forum,

the

creation

looking toward

program

conclusion

problem, labor going

by Mr. Quirk

international

for

ital. It is obvious that

Revising

regulations to remove procedural
obstacles
to
profitable trade.
I

must

clear when it

Government should

our

and

trade,

Conven¬

industry's

environments abroad, favorable to
the investment of private
capital,

ing

/international

made

was

Eco¬

stated:

was

Friendship,

with

Trade

but

here

and

Americans,"
by the 39th

November,,

Continuing in that part of his
State of the Union
Message deal¬
President Eisenhower called
upon
our
friends abroad to/"take the

for

either

below the immediate pre-

era.

creased

imports

our

War

now

basis

this
improvement
the
road, between 1940 and 1952, in¬

stimulate demand.

Council's

Foreign

endorsed

was

National

tion

Policy

which

the

allies.

our

adopt tax incentive legislation.

policy

exporters.

these

are

produced

from abroad

item,

hopeful that the government's
as perhaps the
equivalent of what program, in this field, will stress
we
might term the "vital im¬ the development of a proper in¬
world

available

Essentials to Investments Abroad

American investments abroad, we

could

40%

about

was

plishing

available in insufficient quan¬

standard of

equitable world trade." As for¬
eign traders, we can view this

tainly we want "profitable ahd
equitable world trade" for that
is the only form of trade that

are

Another

that

sure

World

war

This

points lower than at the close

points

not

are

selves

possess

imports

our

among friendly nations. Although
possibly yet not fully recognized
commerce

two

produced at all in this country

trade

which last year totalled

•

About

last year.

35.9%

adequate

greater amounts of important raw
materials which we do not our¬

national

do not have in

for
not

operating
even

Moreover,
is

yet

the

considered

econ¬

been

traffic
most

railroad

couraging. In particular, it is felt

analysts to be highly

en¬

CPAKANTEED

KAtilOAP STOCKS-IQMPS

25 Broad Street

-New York 4, N. Y.

Telephone JBOwlin j Green 9-6400
Members Nat'l Assn. Securities

Dealers, Inc.

Volume 177

Number

15200

The Commercial and Financial Chronicle

(1015)

4v ^

R E A R I M I.

V A A
195 2

reports lor

Revenues

Earnings

the

for
per

year

$131,954,436.

were

Common Stock

were

$6.34.
Dividends of $2.00
both

per-share

Preferred

the

and

making the 47th consecutive
dividends have been

paid

were

Common
year

Stocks,

in which

all classes of

stock.

Industries located
A

total of $27,032,582

provements,

was.

of which $22,161,276

equipment and $4,871,306
ments

was

for

last

two

000

carloads

years are

the Reading during the

expected to produce 40,-

revenue

freight annually.

for improve¬

road property.

Operating
year

invested in im¬

expenses

decreased 2% .for the

and the operating ratio

was

reduced

to
President

77.41%.
I

REVENUES, EXPENSES and EARNINGS for 1952
(Condensed Earnings Report)

increase

1952

1951

decrease

Revenues

from-Operation—Transportation of freight,

passengers,

$131,177,889
Expenses
tenance

and

transportation service, main¬
depreciation of road facilities and equipment, and
102,152,097

Tax Accruals—federal and state income, railroad retirement,

employment insurance, and
operations
Net Receipts

Other

776,597-1

Operation—Cost of

$ 29,802,589

way

from

Rent

other taxes

applicable

Facilities

and

27,111,953

$2,687,131-1

15,042,833

un¬

railway

Equipment

7,910.83 7-D

101,062,93 f<
$

...

Jointly Used Rail¬
■!..
$
,.

267,661-1
'

1,271,981

1,216,925

23,056-1

13,318,997

$2,UJ,829-4

15,766,826

1,761,309

1,769,169

17,531,195

15,088,166

5,851,888

5,555,958

$ 11.676.307

9.532,208

$2,144,099-1

Income—Dividends, interest and rentals, less miscellaneous
$

1,800-D

$2/143,029-1

Fixed ChaRGES-TjInterest
<

on funded.and
unfunded debt, rent for
leased roads, and amortization of discount on funded debt.
8
•

Net Income
n

and

Available

for

£98;930-4

Dividends, Capital Expenditures,.

Other Corporate Purposes

...

"S4

The Commercial and Financial Chronicle...

(1016)

Thursday, March 5, 1953

The Right to WoikAn Unalienable Right

Bill No.

States,

116, known as

their

Bill" is
now pending before the Legis¬
lature of the State of Utah. In
this connection, Mr. Marr has
issued a statement bearing the
captain "Lest We Forget" the
Right

text

Work

—destroys

the

makes

—and

rather

ants

their

The
ence

Declaration

Independ¬

men

they

Creator

their

men

form

* *

unalienable

membership
ism—these

whether

Declaration,

United States

declared that:

involun¬

nor

have

the

them

shall

been

exist

basic

union

have proved

—

unions.
they

join
just

ing

want

who

not

union

enough

strong

their freedom or

Degrades

off

the

from

dues—or

jobs—takes
and

away

makes

something

for

they

think isn't worth

power

against

unions and stop

to get out of

paying dues. All

should have that free

course

CORPORATION,
Head Office: BASLE.

Geneva
•

such

total

SWITZERLAND

•

Lausanne

Schaffhouse

mate

Neuchatel

•

his

open

employees

force

British

the

actions, including private invest¬
ments and government aid, for¬
eigners

United

S.Fci.

Condition, December 31,1952
ASSETS

Cash

Swiss Francs

312,296,469

Banks and Bankers..

335,656,573

Bills Receivable

686,393,204

Short Advances

16,227,626

or,

Confidence

availabilities, with
service transactions requiring $4.8

tion

and

yet,
scheme of

should

union

corpora¬

officials

freedom

take

from

away

the

Government and other Securities

000,000

Total S. Fes.

LIABILITIES

Capital

518,873,025

12,500,000

2^8587047,298
Swiss Francs

160,000,000

Reserves

52,000,000

Sight Deposits

Deposits

freedom

choice, freedom of jobs, freedom
to improve, freedom to compete,
freedom to strive and excel, free¬
dom independently to steek good

and

just rewards.

of power—not where a

balance

union

monopoly,
for * instance,
becomes so powerful as to domi¬

imports in 1953 might be a little
lower than 1952,

employees,

employers,

cus-,

means

any

power

the

clearly shows—always

less freedom and less well

rumored,

House Bill

116

The

economic

level

activity

government

under

which

men

are

entitled

liberty

and

the

pursuitt of

life,

hap¬

piness, and under which involun¬
tary servitude, except as a pun¬

ing future import volume and, in

estimate,

import

the

setting

}

•<

Joins
(Special

Supple, Griswold
to

The

Financial

Chronicle)

SAN

FRANCISCO, Calif.—Al¬
bert C. Stubb has joined the staff
of Supple, Griswold & Co., 235
Montgomery Street. Mr.
Stubb
was formerly with Wilson, John¬
son
&
Higgins and Davies &
Mejia.

decline

industrial

our

pro¬

ductivity for 1953.
'

of commer¬

While the estimate

for

1953

less

than

exports

$700,000,000

allows for about
over

crease

about

1952,

The

$700,000,000 in¬

commercial

the

ex¬

last six months

of the

rate

1952.

high average of ex¬

ports for 1952 was due to the very
substantial amount of shipments
in the first-half of the year

which

the second half mainly

fell off in

Profit

22,569,150

2,858,047,298

manufactured

products
in

George I. Williamson is
A. M. Kidder &

Fla.
now

are

better.

made

retention

the

present

felt
that $12.5 billion for commercial
exports this year represented a
minimum figure which could pos¬
and,

(Special to The Financial Chronicle)

LAUDERDALE,

the

good and,

possibly

lines,

some

These estimates

import and exchange restrictions

With A. M. Kidder
FT.

industrial

and

should be

—

with

Co., 207 East Las

balance,

group

our

Joins Kidder Staff
AGENCY

Main Office, 15 Nassau Street, New York 5, N. Y.

Office, 10 W. 49th St., New York 20, N.Y,

(Special

The

Financial

OFFICES

PETERSBURG, Fla. —
George E. Sims has become af¬

99, Gresham Street, E.C. 2, and 11c, Regent Street, S. W.l

Beach

formerly
Pierce,

Drive, North. He
with

Fenner

number of years.

Merrill
&

Beane

expected

was

Lynch,
for

will,

American

that

1953,

meet

greater competition from the re¬

Chronicle)

ST.

400

exporters

filiated with A. M. Kidder & Co.,

LONDON

re¬

ports of the Federal Reserve Bank
show
of

toward

trend

conversion

greater amount of these into

This would indicate
possibly, the managers o£

gold holding.

that,
these

feel

funds

that

there

possibility that the United
States might increase its purchase
price for gold. Our government,
on
a
number of occasions, has
some

made it clear that it has

inten¬

but, despite this, plans, based on
hopes, continue to be brought

such

One

forward.

crease

$35

United States

the

for

in¬

price of gold from
ounce to $52 per ounce,

per

with

calls

the

book

profit

utilize

obtained

gold holdings to set

its

stabiliza¬
tion fund to make the pound and
other

currencies

up a

convertible.

might clarify the thinking of peo¬
ple abroad if, at this time, our
government would again empha¬
of

inten¬

further

depreciating the
American dollar through increase
in

the price of gold.

Many signs point to

serious

consideration at this time of steps
to increase the convertibility of
ern

European currencies.

All in¬

dications; are that this topic will
be on the agenda for discussion
when Britain's Foreign Secretary,
Anthony Eden, and the Chancellor
the

Exchequer,

make

official

visit

Butler,

the

observers

the

United States next month.

financial

posi¬

tion of the United Kingdom have

the

expressed
Eden
would
our

view

Butler

and

out

sound

that

Messrs.

this

visit

attitude

the

Treasury Department toward

some

form of financial

the

United

the

convertibility

Kingdom

backing to
broaden
the pound.
to

Increased

forward

looked

with

any

degree of optimism for 1953.
There is
ers

that

been

need to tell export¬

seller's

the

over

for

some

market

has

time and that

greater concentration of sales ef¬
fort must go

into current planning

for sales abroad.
who

turers

their

Those manufac¬

have

not

responsibility

respected

supply

share of their production
abroad, during a pe¬

to customers

German and Japanese Competition

49th Street

States, it is noted

that these continue to rise and

proper

sibly be bettered.

Olas Boulevard.

YORK

United

the

to the matter of re¬
foreign Central Banks

convertibility of ster¬
falling off in other items.
ling and other trading currencies,
On the basis of improved sup¬ if it leads to an easing of present
ply conditions abroad, it is not discriminatory import regulations,
would enhance the trade possibil¬
expected that either coal or agri¬
cultural products will do as well ities of American exporters. I do
not think, however, that this can
this year as last. The outlook for

basis

50,388,097

54,556,641

NEW

serves

it the pound sterling and other West¬

believed that there would be

through reduced shipments of coal
and
agricultural products, with

crime, is prohibited.

abroad.

course,

paramount importance in judg¬

ishment for

therefore

in the United States is,

port

States, the great¬
single factor in international
trade
will, on balance, benefit
from expanding world trade and
improved economic communities
est

tion

the

that the United

size the fact that it has

cial

directly

meeting German and Japanese
competition in third markets but
it is consistent with the theory

price of imported products will be
as
high as that of 1952.

"political dynamite" then truly
we have fallen a long ways from
idea

As the
dropped

should be noted that the estimate

being for everybody else.
as

considerably,

sales

for*

thought doubtful that the average

all

group—as

one

were

in 1952 many
imported at

high prices.
overall price index has

Unwarranted

would
and it

1952,

repeated this year

commodities

the

public.

transacted

relatively

was

216,354,500

Other Liabilities

Total S. Fes.

this group antici¬

pated that considerable amount
of stockpiling, which our govern¬

tomers, vendors, government and

385,125,118

Deposits ("Obligations")
Acceptances

arriving at their opinion that

prospects

tion of changing the price of gold

1952.

noted that early

Damages Everybody:

reserve

$1.5 billion—$600,than was added in

was

1,917,053,792

Fixed

and

some

14,723,821
Property...

gold

against just that.

1,007,882

Other Assets

their

in¬

foreigners

leaving

values

billion

$1.9

and omissions cate¬

errors

not

year,

exports

ment

960,368,698

Syndicates

difference

the

total

employees by force, the gov¬
ernment should protect employees

thrives

last

same

of
goods and services of $17.3 billion.

con¬

being

worse

and

the

holdings
Government

party to any

these

terious

Customers, etc

expected to utilize $12.5 bil¬

are

lion

ssuch

market

Germany, should be¬

This I know is very little solace

Turning

exports for 1953

—$0.4 billion goes into the mys¬

protect freedom. Rather than
doning

States

com¬

trading
better

to the American company

previously mentioned.

them

government

Destroys

Government:

$3.3

and

anybody else.
Force

expected to acquire
billion, making up
billion of available funds

are

another
the $19.2

gory,

If,

Time

result

which
in¬
earnings esti¬

upon

crease

Bienne

RESERVES
58.000.000

Bank Premises and other

about

run

coronation. Through capital trans¬

billion,

protect

history
CAPITAL

1BO.000.OOOS.FC8.

Advances to

$4,600,000,000,

making

tional

Holland for

from the United States.

figure
$11.3
Earnings to foreigners on
services in 1953 are expected to
expected

by anyone—whether by union of¬

hands

Statement of

slight reduction.

adjustment for off¬

Germany

ficials,

nate

La Chaux-de-Fonds

of
an

should

exports,

and
Japan1,, to¬
gether with some of their tradi¬

billion.

Progress thrives where there is

•

in 1952, with the

increased
that

come

deal

needless

money

want

Swiss bank

St. Gall

imports
at about

shore purchases, the import

officials, the employer

should do all that is legally in his

money.
may

the

other tem¬

some

making

with union

Force

•

level

same

possibility

call¬

letting

personal gain.

Progress

Zurich

merchandise

expected to remain

are

cludes higher travel

Employers:

strike,

employer make

Forcing

join.
pay

freedom,

pay

Some

United

the

within

their

lose

the

convicted,

duly

commercial

Including

pulsion being imposed

and

don't want and

tary servitude, except as a punish¬

have

right

else

forced

—

not.

want

join

this

ment for crime whereof the party

shall

don't

them

slavery

believe

That's their right

the Thirteenth Amendment to the

"Neither

are

they

Lots of employees

they

Constitution of the

unions

compulsory union¬
bad for employees,

—

membership

right of the people to alter or to
*

serv¬

masters

Forced

Workers:

dues-paying

* and that whenever any

the

strong enough to protect

Force

Far

government becomes de¬
structive of these ends, it is the

Implementing this

Hurts

Force

abolish

the

members

their right to make a living.

porary

instituted among

are

union officials

over

union.

own

them—but

except

work

looked:

rights; that among these are life,
liberty, and the pursuit of happi¬
ness. That to secure these rights,
governments

New Administration

dues—

of values
control union

than

destroy them

to Work Bill"—Ed.] ele¬
mentary facts should not be over¬

equal;

endowed
certain

with

"Right
created

are

paying
sense

from union officials—such

declared that:

"All
that

Forget"

Foieign Trade Under the

stay

conditions imposed by an¬ isn't a
pretty sight when an em¬
other
man,
it has ignored the
ployer—out of either cowardice or
fundamental principle enunciated
what seems to be "practical neces¬
in the Declaration of Independ¬
sity"—makes a deal with union
ence and ignored the mandate of
officials and trades away the free¬
the Thirteenth Amendment.
dom and pay of his employees in
In considering your action upon
return for favors or concessions
House
Bill
No.
116
[the Utah

herewith.—Editor.
"Lest

right

upon

reproduced

which

subject

place

government denies to one

the

man

of¬

that

see

members
on

members have

jurisdiction."

When

keep

Employees

any

Forcing

their

want

House

and

it in the members' in¬

contrary to

Amendment to the Constitution.

"The

the

employees can con¬

union

run

and

That's

choice.

completely against their will and

Independence and the mandate of the 13th

way

their

terest.

"Right to Work" bill now pending before
the Utah State Legislature, Mr. Marr observes that it is in
accord with the fundamental principle enunciated in the
Declaration

only real
trol

By G. A. MARK

that

ficials

Attorney-at-Law, Salt Lake City, Utah

Commenting

them, if they should want to Continued from page

exercise

vitalized export trade of
and
have

Japan.
a

This,

direct

American

impact

companies

Germany
will

course,

riod of shortages, have placed an
unreasonable

burden

their

upon

who must now
operate in a highly competitive
and,
possibly, unfriendly field.
export

the

managers

other

hand,

those

com¬

upon

the

panies that have allocated a

being

re¬

share of their output

fair

for custom¬

competition but,
ers
abroad and backed their ex¬
degree
of con¬
officials ' in serving their
vertibility of the funds received port
placed by
assuming

such

some

by Germany and Japan for their

areas

will, as in difficult times in

Volume 177

Number 5200... The Commercial and Financial Chronicle

(1017)
the

past, secure a good
the business available.

share of

manufacturers

Those

who

ment

been

feel

Business

they can increase their ex¬
ports 4 when
domestic
business

Survey Committee of the National Association of
Purchasing Agents, headed by Robert C. Swanton, finds pro¬

slows down might well ponder the

duction

following paragraph from the

re¬

Expansion," the

issued by
the United States Department of
survey

Commerce.

."The

key

continued

favor¬

ucts when controls are
off, the
majority opinion of purchas¬ duction has come up to meet the reaction from an unrealistic do¬
ing agents,
who
comprise
the new demand and eat into pre¬ mestic controlled price and an
National Association of Purchas¬ vious
backlogs. Much new busi¬ arbitrarily set foreign price. For
ing Agents, Business Survey Com¬ ness is short orders for
early de¬ a time, there may be a multiple
mittee, whose livery.
Nobody wishes to hold price market before the metal

Chairman

Robert

Swanton,

Di¬

a high
domestic business activ¬

successfully maintaining

ity

and

chases,

system, which may either
or expand
more or less
simultaneously, but which in the
longer run can hardly be divided
part
in

contractions

the

:myf"

that the

one

tion will have
in

distinct advantage

share of business
competitive markets., I

securing its

in highly

for

cisive
Robert C. Swanton

leveling off at
until

the

de¬

trend,

finds
trial

rate

are

report

indus¬

additional shifts where help is
available.
Wage
decontrol
has

end

June.

Purchased

inventory

policies

reflection

buying and
in force are
pessimistic

ognition

that

scarcities

rec¬

fast

are

to date.

Many labor-management

discussions
no

big

optimistic for becoming a fear of the past. In¬
am confident that the outstanding
the third quarter, while 20% look flation is
being stopped, and busi¬
productive and sales qualities of for a
continuing high rate of ness is entering a new era of the
American companies will enable
business for the whole year, with give and take of free
competition.
them to successfully meet exist¬
normal ups and downs—no drastic
ing challenges.
Our traders are
Commodity Prices
change expected either way.
entitled
to friendly interest
in
The
committee
reports
that
Wage decontrol and release of
such of their problems as arise
orders continue of flow in, though many items from
price curbs did
from discriminatory acts of for¬
at a somewhat slower rate. Pro- not create an
upward price move¬
eign governments and it would

decline, though
pace
than
has
in many months.

slower

been

reported

Seventy-five
much

per

improved

Others

are

turnover

inventories

the

cent

turnover

striving

and

investments,

record

rate.

Buying Policy

price weakness, in-r
ventory
reduction
and
supply
balancing with demand, a buyers',
market

February.
on

reporting
90
a

dustrial

are

a
control policy
days.
This does not
pessimistic view of in¬

business.

controls.
most

Business

looks

systematically,

but

the

Edward Jones Adds
ST.

LOUIS, Mo.—Eugene L. de

com¬

production

needs.

has

been

Edward

300 North Fourth
of

the

Stock

New

added

Jones

ability

volved.

ment

the

and

Exchanges.

relaxed

in¬

governments

think that
its

effort

our

economic strength of

govern?

fM
m.

bolster the

friendly

From

our

na¬

1952 Annual Report

tolerant
trade not

tions has been extremely
of measures against our

entirely justified by present day
conditions.

for

tions

and

the

certain

foreign
outlook

the

St.

Louis

$160,584,277

Operating Expenses

$116,886,004

(Expenses to Revenues)
.".Vs.,

Taxes

••••••

Interna¬

Fixed

Atwill Adds to Staff

Income

to Earned

Upham

Before
After

$ 20,052,275

$ 18,469,252

$ 12,029,664

$ 14,020,960

2,089,372

Earned

(Special to The Financial Chronicle)

8.22

Charges

«.

710

$ 19,988,605

•,

Revenue Ton Miles (Thousands)

Average Revenue Per Ton Mile

Carried

1,967,760-

6.71

1,962,360

1,965,934

$ 14,175,149

8,156,294

9,965,654

(a)

3,067,454

2,704,759 °

2,432,687

2,842,311

770.792

566.608

262,483

585,713

$ 11,207,907

5,137,894

6,537,630

$ 12,356,652

20.48(c)

17.93(c)

15.79

8.71

10.84

19.69(c)

13.65(c)

12.30

$ I

5.16

6.81

5.00

1.50

5.00

5.25

4.25

3.00

♦

■.

Preferred Stockholders
Common

Stockholders

5.00
;

1.00

Total All Wages

%4;a '

„

150,000

850,000

43,896

43,050

39,723

33,413

37,650

9,269,600

9,140,307

8,262,713

7,357,955

8,205,360

.0144

1,320,370

.0276

.0135

1,465,186

551,133

568,031

2,454

5,302

4,205

17,811

.0245

2,573

.0134

1,582,234

573,680

.0257

17,048

.0133

1,423,636

589,315

.0254

.0130
1,959,124
661,483

2,820

.0243

2,690

4,260

4,361

4,561

17,400

17,013

18,591

„

S 75,362,083

$ 72,645,335

4,080

4,145

•

$ 63,679,362

$ 64,249,296

$ 65,337,198

4,146

4,153

(b) Based on shares outstanding as of December 31.

The 1952 Report

Carondelet Street.

Seaboard's

has been distributed
stockholders

securityholders. A

Draper, Sears

tained

copy may

end

be ob¬

by writing to:

(Special to The Financial Chronicle)

W. F. CUMMINGS,

BOSTON, Mass.—Wallace C.

Secretary

(c) Taking accelerated amortization on emergency projects covered by Section
124A Certificates as deductions for Federal Income tax purposes reduced
1952 and
1951 accruals for Federal
Income taxes by $3,375,000 and
$1,885,000, respectively. These tax reductions were equivalent, per share of
Common Stock, in 1952 to $3.46 of the $20.48 and $19.69, respectively, a: t
in 1951 to $2.22 of the $17.93 and $13.65, respectively.

Seaboard Air Line Railroad Company

McElroy

*
-

and Boston. Stock

Exchanges. He
was previously with R. L.
Day &
Co., Inc.;
•

150,000
850,000

(a) Capital Fund requirements eliminated by reason of satisfaction of General
Mortgage in 1952.

the

Jones, Inc., 219

has become connected
With Draper, Sears & Co., 53 State
Street, members of the New York

150,000
850,000

sSa

None

975,790

None

Miles of Road Operated at End of Year

(Special to The Financial Chronicle)

.......

Revenue Per Passenger Mile

Joins Scharff & Jones

added to

1,883,682

$ 15,990,714

'/v.

connected,

Johnson,. 1312

been

6.29

7.94

Stock

Average Number of Employees

has

1,911,010

Street.

staff of Scharff &

9.21

2,326,343

Passengers Carried One Mile (Thousands)

La.—Charles

La.—Roy

% 19,217,813

Capital and Sinking Funds (b)

yCfi&p Passengers

(Special to The Financial Chronicle)

ORLEANS,

1,031,811

2,177,879

Tons of Revenue Freight Hauled (Thousands)

With Walter H. Johnson

Joins

Common Stock

Peachtree Street, N. E.

Surplus

Preferred Stock

■nffhSk-

Haines has become affiliated with

Blondeau

2,910,389

Shares of Capital Stock Outstanding
as of End of Year:

Pruett Adds to Staff

NEW

Capital and Sinking Funds (b)

Common

ATLANTA, Ga.—Charles W.

....*#*»

Preferred Stock
<1

North Third

$ 23,930,805

Dividends Per Share Paid:

South County Road.

78.62%

$ 12,527,153

Earnings Per Share of Common Stock:

BEACH, Fla.—James A.
has become associated
with Harris, Upham & Co., 316

Walter

80.45%

$ 11,198,704

'(&?//.

&///K

PALM

with

72.91%

$ 16,782,998

Balance of Income Transferred

De Peyster

MONROE,

$104,324,127

Applied to:

Sinking Funds

(Special to The Financial Chronicle)

Walsworth has become

$ 98,870,492

74.47%

Capital Fund

*ssu *.

Inc.,

$ 98,822,143

$ 16,714,694

and Other Deductions

Company,

$111,211,467

72.79%

Charges

Net Income after Fixed

MIAMI, Fla. — Mrs. Laura M.
McCarthy has joined the staff of
Atwill & Company, First National
Bank Building.

and

1948

$132,695,409

$ 18,319,327

•

Other Deductions (Contingent Interest)

(Special to The Financial chronicle)

Pruett

1949

$122,894,179

Income Available for Fixed Charges
Times Fixed Charges

;

1950

$135,536,777

•••»•.

tional Trade Forum.

Joins Harris,

1951

$149,337,054

Operating Ratio

will, I hope, be of some
furthering the delibera¬

1953

help

current

the

situation

trade

review

brief

This

factors

1952

Operating Revenues'

Norfolk 10, Va.

the

Co.,

Street, members

York

economic

reasonable

(Special to The Financial Chronicle)

exchange
licensing
procedures
against U. S. products be gradu¬
within

good

June.

priate for Washington to request
that
discriminatory, import and

ally,

caution,

Purchasing Agents through

that the time is now appro¬

seem

bred of the change from scarcities,
artificial prices and unnecessary

staff

with

predominately
90-days—two

pos¬

practically all lines.
stocks

substantiated

future coverage,

inventory

this is made

balance

hand-to-mouth

materials

plete

pronounced

This

by the short-range view reported

Penaloza

Many report

So far,

evidence.

help is generally in short

sible by increasing availability of
in

In line with

increase

reduce

supply.

denote

material

in process.

are

break

Skilled

under

not caused much real labor unrest

thirds

Inventories

still

attitude toward business this year.

Be¬

world price basis.

down than up.

are

the present high They stem from the growing

yond that, 20%

that the very cautious
not

business

the

January. A few
longer work week

the

set

Obviously, all other factors be¬
ing equal, the company with a
competent going export organiza¬

point

turnover rates

The few advances have been

com¬

settles

remained

high

the
meantime, buyers are
not
inclined
to
and
are
speculate
are
holding
purchases
to
increasing. Buying policy is
near-by
conservative in the midrange of requirements.
As
to
over-all
hand-to-mouth to i 90 days.
Em¬ commodity price trends, Purchas¬
ployment is high and labor re¬ ing Agents believe supply, de¬
mand and competition will be the
lations more tranquil.
The
spree
of
important influences.
At
price increases most
prophesied to follow wage and this time, the indicators are more

and

mid-year than canceled out by declines.
The committee also points out
period

ing

other."

the

Indus¬

Conn., though
indicating price decontrols has not occurred.

by expansion

be offset

can

Re¬

peating Arms
Company,
New Haven,

contract

unnecessary
inventories.
trial raw material stocks

good balance

Win¬

chester

market

that

rector of Pur¬

in continued economic
progress abroad. Foreign and do-,
mestic markets are really only
parts of a single inter-connected

Employment

able export markets lies basically

level

than

many buyers is the anticipated
confusion in copper and its prod¬

meeting demand and eating into previous backlogs.

now

Employment

that

port of "Markets after the Defense

February.
There
has
flurry of small advances,
offset by lower quo¬
tations.
Of particular interest to

Balance in Output and Demand Cited

SEABOARD AIR LINE RAILROAD COMPANY

Midwest

The Commercial and Financial Chronicle...

tioia)

department. In fact, you might
a
supply of letters mimeo¬

Cites Recent Weaknesses in Our

have

in
headihgs and* salutations; provid¬
ing the work is well done and the
letters are signed personally. This
would
save
time, especially if
graphed to match your typed

Securities Salesman's Corner
By JOHN DUTTON

office staff

your

Prospecting: Idea

I
'

•

live

you

V/here there

ing

into

&nd

if you

are

town

community

people

new

from

com¬

cities,

other

will take the time to

notice the real estate transactions
that

paper,

you

some

new

sible

list

£.

type

pects

nature.

someone

letters

personal

Weimer, Dean of Indiana University School of
Business, and Economist of the United States Savings and
Loan League, lists shrinking farm prosperity, high inventories

and rapid

busy

too

this

expansion of

localities

address at

real

estate

records

weakness have

county

Disagrees in Part With Henry Ford! II

Views

municipal clerk's

will

homes

make

that have

will

you

which

his organization also favors customs simplification and
revamping of Trade Agreements Act, while not opposing elimi¬

Dr.

Weimer,

who

says

pects

dis¬

than

make

you

with

the

prop¬

"better"

settled

sections

residential

community this too will

your

you

The

prospecting.1

your

commenting
made
by Henry
"Chronicle"

the Inland

Reason for

Making

The

that

reason

opportunity to

dent

ment

account

find

may

you

invest¬
those who

among

these

and

people

securities

have

investments, but also that

have

ing

legitimate

hurdles

man

that

the

most
sales¬

any

securities must

overcome

is that he always finds it a handi¬

should

You

that you are

contact

-other

lead

opinion)

springboard

that

some

friend' (the

for

inquiry

following from

client

contact."

reason

advertising,

your

from

■use

"cold

call. Either it is

every

have

make

cap

enables

that

iff

can

make

you

dignified approach

some

first

your

call.

Feb.

19)

(see

before

Daily Press Association

has "re¬
state¬

Letter

Dear Mr. Smith.

Columbus

thinking

you

with

can

you

know

are

resi¬

new

are

let

anything

you

that

you

to '.you

not,

would

regarding

your

investments and securities. If
would

time

sell

securities

Rose

bonds,

listed

mutual

and
can

unlisted

funds,

addition,

stocks,
offer you
i

have

Statistical

give

municipal

facilities.

bUy

Research

Department

that

analyisis of your
investment portfolio at any time
you

would

you

also have

have

it.

service that will keep
advised on the investments

3rou

the

quoted- in

Feb.

elimination

The League
mainte¬

the

advocate

not

tariff

10%

the

foreign ^automobiles.
dGes

press

immediate

advocated

having

import duty on any

charge

for this service because

know

that by giving our clients the
very
best assistance along this line it

irj

profitable
the

ever

them

and

longer term.

for

preciate
would
at

you,

call

any

the automotive

tariff;

very
our

would

much

ap¬

you

Main Street office

time.

later

all

means

you

have

you

are

not

door

telephone
open.

call
least

going in cold. Some

of these people
may not have the
remotest idea of buying securi-

and

billion

dollars

Weimer.

does

says,

what

mean

now

19 years, but in

nearly

the

time

the

then

so,

what

there

sales

create

does

are;

count

with

Then

about

how

"serious

those

duty;;on; auto¬
touched

been

not

which

could

in¬

is still

mystery why, that ..duty

not reduced

was

duties

agreements. * It

wil^ be

when the

all

the rest of the list were

reduced'

being

"Another

;

which the
League finds itsdlf in agreement
with Mr. Ford! is that the Trade
point

Agreements Act
should

•

must

his

cars

1,000,000

closed

is oqtmoded and

Under the
Act rates in¬
cluded in agreements are frozen.

Trade

dropped.

Agreements

seems

six

-or

the

before

prepared

the

obvious "to' lis

competitive

»•

the
of

Spiegel,

economy.-

'"The

■>

League

""""

market

halls- of

the

wonder

realizes

,Bqil(jei;s,.

introduced

been

there

clear

situation

the

for

revised.

tariff

duties
long as

constructive purpose
structure,

Mr.

equitable

Ford

customs
pro^

from

the

high
when

prices
a

the

then

With Waddell Reed
*

V
*

KANSAS
Newton

CITY, Mo.—Allen L.
joined the staff of
Reed, Inc., 1012 Balti¬

has

Waddell &

Avenue.

■

United

•

■*

Fusz-Schmelzle Adds

States,' and not in

"Mr. Ford

said further that

(Special to The Financial Chronicle)
we

ST.

organization

There is

know of

disagreement that we
that subject. The bill
before Congress last year, how¬
ever,
went well beyond simpli¬
fication of customs and in several

important

provision

would

reduced the amounts of duty

LOUIS,

and the Eisen-

grg*

and:

and tend to stimulate

available

housing de¬

"If
be

FHA

should

and

liberalized

terms

wider

cover

the demand for

should;

houses

old

and

price ranges,-

larger houses

un¬

doubtedly would become stronger.,
"Many,

families

t h

bought

minimum houses in terms of their*

requirements

the

after

have

war

shortly

accumulated

substantial
'trade up'

equities

might

and

if financing terms

were

isfrati'on

Out

the

tafry

Emanuel

New

Spiegel

Presidency
pro¬

is designed
to
industry to maintain

posed'

program

the

production

1,000,000

rehabilitate

750,000

the

month, said the

enable

than

Mo.

—

The

also

new

each

older

dynamic

calls-for

Walter

Fulton, Reid

was
previously
Hopkins & Co.

the

credit

neg¬

requirements

families
'■/

volume of

payment

currently

production

prosperous

modest

ap¬

econ¬

payment requirements," he
"The^FHA' down payment

modest

means.

•"For

assumed

annual

down

FHA

which

Jersey builder,
since

tions, by making adequate mort¬
gage financing available for. .the
'forgotten man'—the non-veteran

program.

The

guaranteed by the Veterans' Ad¬
ministration, and perhaps on some
mortgages insured by the Federal
Housing
Administration,
and a

requirements should be amended
V f to recognize today's condi¬

hower Admin-

units

which

are

housing

$15,000

house

should

able

so
with a down payment of
$1,200 to $1,800, instead of $2,400
to $3,000 as at present."
-

Pointing out

ing is

of the

American

Spiegel
of

that

home

build¬

the major bulwarks

one of

Mr.

economy,

that

noted

construction

homes accounted directly
$11,000,000,000 of the national
production in 1952, plus an esti¬
mated $2,750,000,000 indirectly'in
new

for

repair.

lower

example," he added, "the
purchaser buying
a
$12,000
to

homes and to
year
at
least

program

down

ments,

longer

payment

pay¬

term,

Spiegel said the key to the
program
is an adequate
flow of mortgage capital at terms
adapted to the needs of the "mass
entire

CLEVELAND, Ohio — Harlow
Greenwood has joined the
staff market"—at low down payments
of
longer
amortization
terms
Fulton, Reid & Co., Union and
Commerce Building, members! of and with low monthly carrying
the Midwest Stock Exchange. Mr. charges.
C.

readily

mand, he added, stating:

said.

Mr.

With

loans

(Special to The Financial Chronicle)

have Greenwood

paid.

down

submit

Congress

workable Fassel is now with Fusz-Schmel¬ adequate financing for moderniza¬
tion of the old homes, and to re¬
law for simplifying customs pro¬ zle &
Co., Boatmen's Bank Build¬
organize the government's housing
cedures. Again the League agrees,
ing,
members
of
the
Midwest
agencies in order to give greater
and wishes to point out that a bill Stock
Exchange.
service to the public.
could
have
been passed in the

confined

guaranteed

omy,

should enact promptly a

simplifying customs procedure.

and

currently estimated at 1,000,000
units, ,carin6t> be " long
continued
under
present
high

Wf,,

modernization and

political trading.

increasingly
in the"

advance

insured

propriate

structurally sound but in need of

•

the

which'

national

an-

rates should be made unilaterally
in

and

mortgages would make FHA

-"The

"foreign making his first policy statement

dominates the market.""

(Special to TVe; Financial CHitomcLE)

means.

re-;'

of NAHB last

automobiles',

with Mr.

competing in the market,
protect the ^American con¬

sumer

tions have changed, and the

should

the

not "in ; the

duty-can k;pep the' domestic,

there, may be others where condi¬

there is any

which

provision.

with

tions

whether

thht

usually, exacted

have

rates

get.

non-veteran

total

Tariff Commission:'

source

New commodities

its

jj
a^jrees

and

cases.

on"

than

FHA

becoming

are

hard

lect

Home

.Foxd.also ip meeting competition
twill
in the

The dutiable rates are out of date
many

loans

available

stiffer"

that

and

ago,

year

mortgage'

generally

schedules,

injury rto the productivity, of yealed 11 basic Vf
re'eo'mmenda-•
United

"somewhat

terms

revision

•Associa t ion

billions of dollars

de¬

Association

Emanuel

National

for

meeting

Builders

President of

commodities

States^ and

and

conventional

industry to maintain annual1 production of more than
new homes and to rehabilitate at least 750,000

speech

fhe importation livery

goods
cannot;be imported without, seri¬

ducers

that

money

older units each year.
In

Home

additional

discussing housing and home '

financing trends, Dr. Weimer saidr

M. Spiegel, President of the National Association
Builders, reveals eleven basic recommendations which
organization will submit to Congress, objective of which is

to enable

of all 'the

imported, It

the

Program to Aid Home Owners

•

international

the

incomes."

and

of Home

the* pres¬

oA American

industries

supply to prevent

ous*

out-,

Emanuel

payrolls

to permit such a huge vcrtume of
foreign competitive imports?
There is nothing but the. foreign

favorable

production, employment

attractive."

Draffs

foreign) goods.

America

customers

now

quickly-

decline in

ahead

problems"

American

sent abroad? How about

whose

months

ventories.

tariffs

replacing

production

ent

the

with

He asserted this may

increase in

require

interest rates

loans

decline

could

current

for

immediate

of inventories.

Since Mr. Ford advocates

considerable portion of

now

levels

Weimer warned that

pro¬

that five

has

described

follows:

High

,(2)

Act .has been in

Act., The

that

League,

points

all

last Congress had it been

Loan

weak

majority

If you follow this letter several

and

try has been one of the strongest
advocates for the Trade Agree¬

mobiles

United

States Savings

goods we wa.nt. on
constituting the vast Hartford,

all

the

has

League

the free..list,

for

Weimer

should be eliminated; That indus¬

international

Sincerely

days

constructive purpose. If
industry does not

Arthur

from abroad each

not?

are

enclosing a self ad¬
dressed envelope, and if there is
anything you would like to have
v.s

serving

Economist

trade

productivity

whether

seems

Chicago

3?ou now own. There

The

removing all tariffs, however, he

1953.
is

addition

Wickliffe

trade at

and

States?

Henry

"He

whether They

government bonds,

-cur

you

at; any

investments

your

would

you

any

are

information

regarding

like-

aid.

American

matter

II, in his
speech on tar¬

ments

invite

if there
for

helpful

a new

should

duced and consumed in the United

Ford

force

Whether
would

and

may

dent there.

have

there

Mr.

consistently favored fostering for¬
eign trade where it does not in¬

finds
several points
of agreement

want

;

„

We noticed that you

home

Send

From This List

Home Owners

Can

You

instead

year,

League

nance

that

with

agrees

worth of goods

Tariff

ican

Ford

League

another five to six

"The Amer¬

commodity when the duty is not
Here

and

ment:

17,

School

(1)
Shrinking
prosperity
of
industrial workers,
farmers, miners, and fishermen. -V agriculture, as a result of heavy
production and weaker foreign
"This leads to an important pos¬
markets. "With farm prices still
sibility of difference in views be¬
declining, agricultural prospects
tween the League Land Mr. Ford.
for 1-953 do not now appear to be
If this country could easily absorb
as
bright as last year," said

League,

iff

Unive rsity

American

The

lowing

"The

•

jure

leased the fol¬

best

you

Ford

Presi¬

Inc.,

for mak¬

reason

One

contact.

difficult

you

the speech

upon

American Tar¬

open an

buy homes is not alone that some'

commodity that does not serv6 a
but he objects to all-out tariff repeals.

k 1 i f f e*

Rose,

Solicitation

Dean

of the Indiana

on any

Feb. 17, H.

W i

on."

Business

help

import duty

constructive purpose,

list

priced

erty purchasers. Also, if you are
familiar

nation of

later

off

expan-

Weimer added.

demand

the

look

purchased

likely to

of those in the lower

ties

been

difficul¬

H. Wickliffe Rose, President of the American Tariff League,

good investment pros¬

cover some

find

alter

eco¬

picture

list of the

in the $15,000 price upward range

leveling

consumer

con¬

provided

by this

sion of credit," Dr.

re¬

spell

you

months

recent

con¬
„

buying has been

sumer

the

substantial stimulus to

expansion

Rapid
credit.

developed
nation's

Cffice.
,

(3)
sumer

cently
nomic

Tariff Elimination

weak

economic

transactions

published

conference of

pre-approach the Wisconsin
Savings & Loan
campaign can be used by any call following the letter should
League, Milwaukee, Wis., on Feb.
salesman who has the patience to be used to qualify prospects and
20, Arthur M. Weimer asserted
follow it through—it is not ex¬ to make appointments with those
that three
pensive—and does not take a lot who
might
be
worthwhile
as
points of
of time from your stenographic future clients.
telephone

obtain

credit

consumer

spots that "may spell difficulties later on."
In

The

Economy

Arthur

accounts. It is also pos¬

the

your

daily

your

be able to locate

may

some

f:;om

reported

are

be good pros¬
could be just waiting for
to approach them. This

ties, others might

Thursday, March 5, 1953'

land

and

household

direct
In

the

development
activity
furnishings
and

home

equipment which

result

such

are a

sales.

addition, Mr. Spiegel said,
existing inventories of 43,-

000,000

non-farm homes repre¬
$300,000,000,000 national
_

sents

asset

—

estimated

United

one-fourth

almost

wealth

total

States

—

which

the

must

preserved and strengthened.
The
Home

these

National

Builders

Association

executive

offered

major recommendations for

governmental

action*

com-

Number 5200

Volume 177

The Commercial and Financial Chronicle

...

prehensive national housing pro¬
(1)

Congress

sufficient
to

provide
thus

;

authorization

continuous revolving
the periodic

avoiding

exhaustion

insurance

FHA

which

funds

should give FHA

insurance

fund,

has

ferred to

ing

gram;

time

from

impeded home building.

interest rate on

(2) The

anteed

increased in direct re¬

should be

lation

loans

home

insured

guar¬

rate

interest

the

FHA, thereby eliminat¬
useless duplication of effort

which

adds

penses,

and will result

government

$12,000
limit

instead

—

in force

now

mortgages.

E. F. Hutton & Go.

in savings

veteran purchasers.

(Special to The Financial Chronicle)

(11)

The public housing pro¬
SAN FRANCISCO, Cal.—Robt.
which involves Federal ap¬
M. Bacon has become associated
propriations of more than $100,-

gram,

with

000,000 a year, should be care¬
fully reviewed before any further
funds-are

priated.
also

ing

committed

An I immediate

should

appro¬

review

be made of all

construction

contracts

exist¬

Hutton

Company,

160

Montgomery Street. Mr. Bacon
was formerly Manager of the San
Francisco
du

Pont

was

be¬

office
&

Co.

and

Francis

prior thereto

partner in Bacon

Now With Goodbody Co.

(Special to The Financial Chronicle)

SAN

FRANCISCO,
Calif.
—
CLEVELAND, Ohio — Hayward
Homer A Lee has joined the staff K. Kelley is now connected with
of Mutual Fund Associates,
127 Goodbody & Co., National City
East Sixth Building.
Mr. Kelley
Montgomery Street.
was formerly with Walston & Co.

Waddell & Reed Add
With Greene & Ladd

(Special to The Financial Chronicle)

DETROIT,
Hoffman

Mich.

Ralph

—

(Special

to The

Financial

dissolution

Charles J.
formation

Company
Amicable
gage

—

with

Eubank,

announces

Chas.

Road.

(Special to The Financial Chronicle)

MIDDLETOWN,
T. Johnson has

with

Greene

Ohio—Edward

become connected

Ladd,
tional Bank Building.

Na¬

First

Chronicle)

Following the

Elliott

Eubank

McNichols

■

with

affiliated

now

Waddell & Reed, Inc., 15315 West

WACO, Tex.

With Mutual Fund Assoc.

Co.

C. J. Eubank Co. Formed

offices

the

Eubank

Life

Joins Pacific Northwest

King Merritt Adds

(Special to The Financial Chronicle)

PORTLAND, Oreg.—Richard T.
Ruckdeschel

with

now

Pacific

the

Building to
en¬
in the securities business.

Northwest

Company,

MINNEAPOLIS, Minn.
liam

Richter

has

—

Wil-

become

af-

Wilcox filiated with King Merritt & Co.,

Building.

Inc., Rand Tower.

25-year

most

•

the

Robert M. Bacon With

ex¬

present tween the Federal Public
Housing
4% rate on VA-guaranteed loans Administration? and local
housing
and, in some areas, the 4%% FHA authorities.
'
rate, are out of line with the ris¬
ing rate of return on other in¬
Joins Leje Higginson
vestments. The present volume of
(Special to The Financial Chronicle)
VA
financing
has
been
made
possible
only
through
inordi¬
CHICAGO, 111.—Scott B. Fr$ser
nately high discounts which lead is with Lee Higginson
Corporar
to
higher
costs
for the
home
tion, 231 South La Salle Street.
buyer, direct federal lending, and
purchases by the Federal National
Mortgage Association.
(3) FHA
down
payment re¬
quirements
should be reduced,
particularly
on
medium-priced
housing, and a 30-year mortgage
should be
permitted on all VA
and FHA housing priced .below
The

bonds.

government

(1019)

such

.Spiegel;^ proposed
raising the
mortgage limit from $16,000
$20,000 on single-family homes
and a new sliding scale of down
payments under which the maxi¬
mum mortgage would
be 95% of
FHA

the,

first

$5,000.

homes

above

$20,000 up to $25,maximum
mortgage

the

000,

plus

next $7,000 and 60%

the

valued

valuation,

$8,000

of the

80%

would

flat 80%.

FNMA should be restored
its
original
function
as
a

(4)
to

secondary market for mortgages,
assist in

shortages

temporary
occur

where mortgage

areas

insufficient and to meet

credit

from

which may

time to time.

Spiegel

adjustment of FHA and VA
interest rates would, i,n itself, go
far toward reducing the use of
said

FNMA

out if you

like I'd

>•

just given the operator the

number when I heard your

corporation with an ad¬
visory board composed of rep¬
resentative builders, lenders and
public representatives.
i(5) Defense and military hous¬
ing programs should not be ex¬
tended except as further need for
them
is
conclusively
demon¬
strated by the military or other
agencies in charge of defense pro¬

"Good

thing I remembered to

|ot down Aunt Sue's number when
you were

there the last time."

avoid over-estimation

be taken to

defense

needs

and

military

housing

The estimated $6,000,000,spent each year for or¬

.(6)

now

YOU'LL

dinary home repair and modern¬
ization could be increased by at

by an active
enforcement
of
sanitation
and
health
codes, rehabilitation and
reconditioning rof substandard but
st.ructually sound housing, and
razing of housing which cannot
be salvaged.
FHA should expand
and
liberalize its insuring aids
least

$2,000,000,000

THIS

FIND
FOR

IDEA

this

field

For

.(7)

unable to
assistance

state

and

this

make

You

families as are
pay economic rent, rent
(financed by Federal

vised

save

such

contributions in

proportion
a

time

number you

agreed

properly

So here's

substituted for the present waste¬

out-of-town

ful

public housing program.
(8) Useless
portions of FHA
should
be
eliminated.
Sections

If there's

old

60.9, 611, Title VII, and the farm
housing section of FHA are al¬
most
completely
inactive
and

out-of-town calls when

give the Long Distance operator the

you

super¬
local basis) should be
and

GOOD

pro¬

effective.

gram

YOU, TOO..*

campaign
for
local
building,

|g!

voice.

If continued, care should

duction.

000

and find

"No, it didn't take long. Seemed

private

you

arrived OK.
.

primary mortgage
also' suggested con¬
FNMA into a quasia

market.
version

"Thought I'd call

one

want.

helpful hint. Write down the
numbers you
new

already know.

number you

don't have—or

you've forgotten—be

the list when the

sure to

add it to

operator gives it to you.

should be repealed as an economy

The Bell

measure.

The Housing and Home Fi¬

(9)
nance

your

Agency should be continued

supervisory agency only.
The necessity for a number
of
HjHFA's present activities should
as:

carefully reviewed.
The supervision

Telephone Company in

community will gladly give

you a

free

Telephone Numbers Booklet.

(10)

technical
teed

aspects

the

BELL

TELEPHONE

SYSTEM... Local

serve

the community.

Nationwide

serve

the Nation.

VA-guaran¬

home loans should be trans¬

The Commercial and Financial Chronicle

(1020)

EDITOR:

TO THE

LETTER

Tax

Speaking at

On "Self-incrimination" Grounds

University of Chicago Law School
Feb.

for

says

Commerical

Editor,

Finan¬

and

Signs in Washington and recent
by Mr. Dulles leads
to believe that the pinks, the
subversive thinkers and the Com¬
statements
us

munist

sym¬

pathizers
all

are

their

out not
only from the
way

State

Depart¬

ment

where

they

seem

have

been

fendants'

tions

self

over

due.

Many in¬

these

elements

answer

ques¬

supposed

some

This

may

but

certainly turns these examinations
into a farce, and should in itself
constitute

cient

reason

sons

suspect,

from any

good

and

render

and

such

bar

position of

metal

and

paper

printing.

for

accounts

relatively obscure posts.
Millions

tionnaires

face

people

kind

some

without

every day
hesitation.

box,

our

and

No industry
13% or

than

goods lines dominate
These

as new

the

de¬

relationships
into

come

and

facilities

tics,

raw

fibers

for

will

company

production

Chemstrand

in
op¬

making

styreme
other words, plas¬
materials for synthetic
In

and

the

soil

new

condi¬

tioner will gain in relative sales
importance.
Few

companies in

improvement
has

Increased
1938

the

Monsanto.
in

each

recession

reluctance or
application for

give our thumb
birth
dates,
our

fear of

Why

then

should

defiance

wave

disclosure

this

the
refus¬

shallow

be tolerated for another moment?

While

it may not

be grounds for
it
certainly
sufficient to stamp such

prosecution

should be
a

undesirable for public

person as

service.

FLOYD

ALLEN

25, 1953.

lion

sales

17%

pre-tax

past

possibly
chemical

new

year

except

have

since

1952

the

1952

$100 million re¬
income of $2.37
share.
Before the

results should be im¬

this

siderably higher
for

the

was

con¬

the

$4.29

calendar

year

than

and sales were above

lion annual
can

rate.

margin and
earn

52%

about $6.50 per

But,

course,

new plants will not be sales
contributors for the full year and

half

the

earnings could
rise beyond this figure and with¬
year

out EPT could go to a
$6.50 annual
rate as indicated.
Note that the

calculation

assumes

17%

pre¬

addition, Chemstrand Corp.

full

operation

52%

tax

should

these

fects

the

task

the

levy

taxes

use

plants

fect the

times

from

santo

with

about

within

Chemstrand

two

and

down

results, is

programs,
and

require

private
It

one

possible

tutions.

last

saving. A

effects
least

im¬

means

chief

attractive

than

investments

enterprises,
has

taxpayer

taxes

also

may

uses

would

"the

re¬

which

because

the

among

allocation
in

made

people al¬

differently

from

have

of the

sence

left

make

locate property

various

while

the

ab¬

tax."

included,

will

one

accordingly.

year's reported

earnings,

but should turn out to be

reason¬

ings potential develops

this

it has be¬

increasingly concerned with
influencing the flow of long-term
savings.
What

lessons

from this

does

stabilize

can

experience?

shed

may
hold?
should
be

What light

what the

derive

future

And what policies
adopted to help to

our

economy?

At the present

time, the rate of
savings continues at a
high level. This is an important
personal

imposes

increasing

re¬

future spending

and
demand. The longer it continues,
obviously, the greater is the dan¬
ger that a reversal of the trend
on

Mortgage

the

Debt

other

eco¬

debt

still

climbing.

loans

business

remains strong.

increasing proportion of

ignored.

enormous

there

weakness

manufacturers of these goods are
confident
that
1953
will
be
a
banner year for sales.
In view of this situation, what
should be done?
What policies
should
to

taken

place

are
in

that

private

has

debt.

Since 1945, total private debt has
increased by about $140 billion,
or

almost

100%.

Now, it is true, of course, that
our

with

followed

savings

respect
respect to

national income has also been

rising rapidly during this period.
It is also true that total private

with

and

could set off another

of in¬

wave

cies should be followed?
A

Suggested

ards.

But

that

not

policies.

the

point.

rapid rate and therefore has been
I have —and still
is—a- major stimulant
to the economy. Private debt ex¬

Generally*.

;

and

cannot

business¬

dismiss

the

possibility .that the upsurge of,
optimistic sentiment generated by
the
overwhelming
Eisenhower-,
victory might .lead of a relaxa¬
tion

this

cautious

attitude*.

Perhaps the most important
that

bankers

con¬

make

can

toward maintaining economic sta¬
bility is simply to continue to>
adhere to their conservative credit

policies.
(2)

certain

lective in

lending:

cases,

should

granting loans.

applies,

and

se¬

have-

loan

naturally,

associations

to banks.

the emphasis of bank promotional
efforts should be upon
thrift, not.
loans.

Bankers should regard
part of their responsibility
counsel
individuals
against

going too heavily into debt.
(4) Under existing tax laws, it
is greatly to the advantage of
corporations to finance expansion;
by means of borrowing. The tax
laws

should

nate

this

revised

bias

which

elimi¬

encourages

(5) During the past year and a
half, more
than $1
billion of
public funds have been used to

purchase FHA and VA mortgages
through
the
Federal
National

Mortgage Association. This should
be stopped.
The FNMA should
be restored to the status

originally

intended

that of

Congress,

standby agency.
(6) Various proposals have

than

pretend

today.

present

Now
how

know

not

long

the

building

boom will last*
However, all of us do know that
in the
past all building booms
have

sooner

they

have
companied

or
later ended, that
invariably been ac¬

their

final

stages

by overbuilding, and that the
subsequent readjustment has al¬

easier than it

start

with,

that all of
we

can

savings.
form

seems

clear

personal

encourage

should

the

take

not

only
of
stimulating
savings deposits, but also of vigor¬
ous

efforts

sell

United

recent

Given

bilize

real

balance

the

sustained

years,

the

determination

budget

value

effort

and
the

sta¬

dollar,

merchandise

Savings Bonds should be able to
achieve important results*.
"

All

credit
us,

the

econo¬

that the
original
regulate real

advocating

Reserve

authority
of

Board's

should
am

sure,

restored.

are

aware

disadvantages of this type
regulation. Nevertheless,

of credit
I

think

may

agree

that

this advanced stage of the build¬

ing cycle, real estate credit
ditions

fully,

States Savings Bonds.
In

are

already is.
distinguished

Some

Federal
1950

should do whatever

This

(7)
mists

estate

Program

Savings
Bond program has been greatly
debt does not appear to be exces¬ handicapped
by the background
sive today in relation to national- of an unbalanced Federal
budget
income, if judged by prewar stand¬ and
other
inflationary factors.
The point is that private debt has
been increasing at an abnormally

bankers

have adhered to conservative-

ways
been complicated by the
credit, which will help maintain
overbuilding during the boom*
economic stability?
Most of you will agree, I think,
With our economy operating at
that the present is hardly an ap¬
full blast,
we
cannot rule out
propriate time to stimulate build¬
the
possibility
that
something ing by
making real estate credit

Recognizing
this as
a
possibility,
therefore,
not
nec¬
essarily a probability, what poli¬

One of these

increase

new

;

overspeculation.

credit.

upon

speaking,
men

flation.

Expansion

hand,

elements

the

Taking seasonal factors into ac¬ been put forward which would
count, the rising trend of bank make
housing credit even easier

the present situation which should

the

them

that

come

possibility
lie

note

pansion
strictions

ket.

not

Fur¬

new

effects

years,

our

companied
based

the growth of corporate indebted¬

automobiles and household appli¬
ances is
being sold on credit, and

times

so.

from

former

recent

a
huge expansionary*
which, for the first, timehistory, has not been ac-

boom

ness.

witnessing

(3) Borrowing should not be
encouraged. At a time like this,,

into

well

risky enterprises less

duced amount of property,

into

final splurge of speculation.
For
the past 12 years, we .have been

vestment in

present

away

heavy income tax may make in¬

way

run

essential

the

ones
on
which emphasis is in mind
particularly those insti¬
usually placed in urging changes tutions whose risk assets have
in taxing
methods, Dr. Blough been expanding more rapidly than:
added. A sales tax, he said may their reserves available to absorbmake
spending
for
the
taxed future losses.
This general ob¬

with the short-term money mar¬

the moment, the stock is not
cheap
on

are

first

taken

private

the

times, mone¬
tary management was preoccupied

certain

capital, but the his¬

appraised

taxes

safe

credit through Regulation X were
felt primarily
by savings insti¬

$9 to

successful, dynamic growth and
be

expe¬

be
of

that

not

institutions

effects

the

sure

does

savings

shifting

significant

boom

servation

debt.
the

make

ing for other articles

page

this

policy was upon may some day have serious ef¬
fects on the economy.;
policies of savings
The immediate outlook is for a
institutions. Similarly, the effectSf
of the regulation of real estate further increase in private debt.

Mon¬

I will expect the stock to
continue
to

invest

save,

monetary

new

tory of the company has been
of

since
for the

money
open

af¬

the investment

course,

financing

are

owner
to spend,
give it way."

Incentive

easily

property when it

securities

government

Private

half

another year or

ahead

options

tribution

maker

balance

other

eco¬

(1) Perhaps

article less attractive than spend¬

beneficial

most

grow

President's

form

the

many

debt,

growth
follows:

car

property, the

such

the

use

steps should
the

retard

not

policy

that

produce

earnings.

probably produce $320 mil¬
outlined them.

per

$300 mil¬ ably priced if the sales and"earn¬

Present

"Since

will

decay," Blough, former

the

prevent taxes from having ef¬

re¬

year; in fact,
the annual rate of
earnings in the
fourth quarter of 1952

teponed

much

how

retain

net

upon

which

industries

hand,

addition to encouraging thrift,,

extent

the

re-

in 1941 sales of $64 million
per share of $1.64.

The

live, the

people

earn Monsanto another
$2 element of
strength in
share, although for some time
nomic outlook.
presumably
Chemstrand
would

when

produced net

proved

the

automobile

and

driven.

the

decade

Sales

where

the

drive,

they

depres¬

nomic advisers, said.
"Taxation can most

disposition is

and

use

where

make

slowed

share.

common

ther

authorities

Taxes, Dr. Blough pointed out,
influence

Monetary Policy and Savings

annually,

come

tax it would

sulted

war,

also

may

property. The mistake, he said,

and

the

and

more,

plants

last year's

common

member

national

that

Income of $23.2 million
(including
a tax credit)
equal to $4.29 per
common share. In 1946
sales of a
little less than
per

and which

taxes

conference

made

are

prosperity

which

and
Roy Blough

thereby

have its
harmful effects," Dr. Blough told

re¬

through

adjustment in the chemical in¬
An earnings potential
dustry. However, last year's sales
$10 per common share
of $267
million produced a net

"Reducing

unnecessary

have

that

other

therefore,

decisions

sion, whether prices will rise, fall
or
remain
stable, whether the
economy will expand or stagnate

public

making

tax margin which is
historically
growth low for the company; at 20% the
earnings rate would rise to $7.50.
more sales

they dropped back slightly,
flectingly largely a mid-year

shall

interest.

other

any

industry have shown
than

the

and

eration reaches
capacity, for the as of the moment excess profits
largest single group of projects in taxes are in
effect, so even if
the
1951-53
expansion program EPT expires this summer I would
4s plants to produce acrylonitrile 'not expect more than $5.50 per
and vinyl chloride and to
expand share for 1953. But in the latter
monomer.

harmful effect

ques¬

from the

mand.

1953

Continued

sumers'

plants

have

importance

as seen

change somewhat

"The

expenditures

mid-year
should add $100 to $115 million
of
foregoing list, growing but rela¬
sales. If the company's sales
tively
depression-resistant
con¬
attain a $420 million level on a
14% of sales and

without

suffi¬ Floyd A. Allen & Company, Inc.
harmful to public interest," Blough
per¬ Investment Securities
said. "Sometimes this means tax
them Los Angeles, Calif.
changes to avoid certain effects,,
Feb.

textiles

erty, will determine whether

Security I Like Best

fabricating,

taxes

will

Continued from page 2

The

gambling and

Federal

portion to the great mass of loyal
patriotic straight-thinking people
of this country that it is clearly
unnecessary
to reach into their
ranks
for
candidates, even for

against legal

prerogative

with respect to the use of money,
the most important form of prop¬

flimsy curtain of
de¬ ing to answer legitimate questions

the

notes,

reducing
expen d i tures

prisals.

drugs,

former

im¬

taxes

the

long, long

bank

ex¬

oleomargarine.

without

incrimination.

alone

the

property, as for
Federal taxes on

state

narcotic

ex¬

warned

movement

its

ports,

gratifying

use

ample

prints,
our
is to call attention to the unde¬
changes of residence, our record sirable effects of taxes while for¬
employment, our m o t h e r's getting that the available alterna¬
maiden
name,
and
sometimes tive forms of taxation also carry
many more personal details
all with them undesirable effects.

The Federal

influence large .seg¬
public. This sub¬
versive fringe is so small in pro¬
can

ments

protection

personal

Economic

that repealing

deposit

refusal to

because

pert,

dominant

stymied

constitutional

Office

Treas¬

tax

ury

leadersh i p,

eral.

have

the

into

the

former

where

desired

the

insurance, for employment, for
licenses, even for a safety

forces in gen¬

Floyd A. Allen

Government,

achieve

United Nations

drivers'

but from Gov-

vestigations

they

cial Chronicle:

either

Blough, Di¬

Roy

taxes

Affairs of the

and

Observes that millions of people fill out
daily without reluctance or hesitation.

public service.
questionnaires

27, Dr.

posing
effects."

government, Blough
pointed out, deliberately uses tax¬
ation to discourage some form of

rector

refusal of defendants to answer legitimate
questions should not be tolerated any longer and of itself
should be sufficient to stamp such individuals as undesirable
Floyd A. Allen

conference of the

the

rience of recent years has demon¬
strated that the rate of
personal
savings is not easily regulated*

Seen Harmful

Blocking of Investigations

Scores

Repeal Without Cutting Expenses

Thursday, March 5, 1953

...

(8)

that

will

that

and

assume

lation

should

ever

Similarly,

con¬

watched
we

care¬

should

additional

not

regu¬

again be needed.
we

should

not

regard the regulation of consumer
credit as being dead and buried
for

The Federal Reserve
recently,, stated that
it does not favor the. reimpositioi}
of Regulation W atv.this. time.
It
should
be noted,, however, that
good.

Board

has

President

Eisenhower's

Stat©

Volume 177

the

Number 5200

Union

..The Commercial and Financial Chronicle

(1021)

From
the
in the
standpoint of the the public debt and achieving a
condemned monetary
authorities,
distribution
however, sounder
of
debt
the
use
of
direct
government there would be certain advan¬ ownership.
controls, he made a specific ex¬ tages.
Such an accumulation of
Success in funding the public
ception with
respect to
direct savings would enable the Treas¬ debt
would, in turn, be a boon
credit controls.
Our experience ury to refund some of its exces¬
to

Message,

the

since

Korea

that

Regulation

demonstrated

has

certain

under

vantages,

conditions

for all its

may

serve

(9)

Most

bankers

hope,

neces¬

sary to resort to any additional
credit regulation and that credit
bounds

be
kept withih
voluntary efforts.
It

can

short-term

borrowings into
long-term obligations — to shift

the

that it will not be

Expansion

sive

disad¬ more
useful folios

anti-inflationary weapon.
course,

(1) It is apparent that the role
performed by savings in our econ¬

which he

passage

its

debt

from

commercial

hands

of non-bank

port¬
into

investors.

better

debt

would

authorities
action in

Reserve

authori¬

distribution of the

give

the

greater

the

progress

Treasury
toward

make

Conclusion
In

much

lengthening" out

general

the savings

observations:

made

reduce

controls, except
minimum.

broader

aspects

greater

in which

reliance

monetary

business

af¬

tainly

most

this

policy in

been

advocating it for

here.

concern

Monetary

ways.
a

matter

all officers of

basic

hooves

savings

institutions.

It
all

a voluntary
kind, let us be
prepared to act promptly and to
cooperate fully.

this

(10) Meanwhile, until we are
•definitely out of the inflationary

woods,

the

thorities
to exert

expansion

and

tionary
think
the

doubtless

ALLEGHENY LUDLIM

au¬

continue

mild degree of restraint

the

upon
serves

Resefve

Federal

will
a

bank

credit.

re¬

Financial

If infla¬

trends
do
develop,
I
can
confidently expect

Federal

Reserve

promptly
policy.

Sooner

later,

confronted

will

downward

re¬

business

Sales and Revenues.

activity.

181,219,841

Federal Taxes

should

help to cushion the effects
declining incomes.
Also, it

Net

would be

2,900,000 1

Earnings

5,940,324

appropriate at that time
take steps to ease credit con¬

Dividends, Preferred Stock

355,894

ditions and to encourage the flow
of savings into investment.

Dividends, Common Stock

3,254,3382

The

Outlook

Now let

for

Additions

Savings

range outlook for

strongly

the

main

upward.

reasons

Earnings

Some

per

are

Employees

end of 1945.

Although the
savings accounts has
during the past
there are still millions

years,

who

persons

who can

have

afford to

level

lowered,

off

the

and

public's

savings

save.

living

taxes

are

capacity

will be further increased.

(3)

The

incentive

save

ibe stronger in the future
I recent

Many

years.

ready feel, and
feel,
that we

arid

Sales and

than in

people

al¬

more may come

have'

reached

to
a

industry has
era

sumers

more than doubled.
shortages is past. Con¬

will

have

little

anticipate their needs by
cautionary buying.
Effects

seems

Increased

•other factors,

that

pre¬

Savings

15,782

December 31

excess

13,788

projits tax.

quarterly dividends, company issued 29,064 additional

paid $131,812 cash in lieu of partial shares

as a

year-end

common

extra.

revenues

which

Since

Allegheny Ludlum in 1952, totaled $190,060,165.

strike, 1952 sales

were

spite of

the second highest in
company history.

August 15, when the strike ended, sales have been

at an

annual

rate

new

corporate

bonds,

these

savings are tra¬
invested.
This, obvi¬
ously, would considerably compli¬

ditionally

cate the investment problems con¬

fronting the managers of savings
institutions.

over

$260,000,000. Sales for the fourth quarter reached an all-time high of $66,450,000,
increase

14.6%

totaled $5,940,324.
As the year

ended,

the fourth

over

quarter

of the scheduled plant improvements and expansions which

many

began after World War II had beep completed
important installations in 1952
facilities

for

hot

extrusion.

completed during the
Demand for

of 1951. Net earnings for 1952

year,

were a

or were

nearing completion. Among

three-furnace electric melting department and

Largest project, the

56-inch

major products

was

capacity operations well into 195 3
For additional

hot mill

and should be finished early in the second
exceptionally

strong at

information, write for

can

partially

was

quarter

the close of the

of 1953.

year,

copy

our

1952 Annual Report to Stockholders

ALLEGHENY LllDLLIM STEEL CORPORATION
2020

and

be anticipated.

OLIVER

BUILDING

savings, together

with debt repayments, may exceed
the future supply of new mort¬
and

eleven week steel

including the rapid

accumulations of

December 31

these and

.growth of pension funds, add up
to a high rate of personal
savings
•over the
years ahead.
In fact, it
seems
quite possible that new

gages

$3.37

incentive

may

turning point in the age of infla¬
tion, and that money is going to
>he worth saving again.
(4) Over the past 12 years, the
productive capacity of American
'The

Share of Common Stock

incomes.

personal
:number

••save

34,137,050
71,758,347

Reflects $1,620,000 carryback credit of

2. In addition to

increased by 50%

•costs

35,788,167

December 31

Common Stockholders

(2) The capacity to save of the
•■average American family has in¬
creased substantially over the past'
several decades.
Savings deposits
iiave lagged considerably behind

(After Preferred Dividends)

(1) On a relative basis, sav¬
ings deposits today are not high.
In
terms
of
purchasing power,
savings deposits per capita in this
•country are 20% lower than they

18,094,212

Net Book Value of Plant

'.follows:

were at the

Cost....

December 31

Working Capital

There appear to be good reasons
believe that the trend of per¬
sonal savings over the years ahead

Manufacturing Plant

savings and for

will

Inventories

consider the longer

/monetary policy.

$190,060,165

Operating Expenses

Under
these
circumstances, the
large accumulation of liquid sav¬
ings in the hands of the public
of

Review of 1952

shift

restrictive

with

adjustment

PITTSBURGH 22, PA.

means

and

maintain

Cer¬

believe

fact,

have

years.

Now

trial.

do what

to ensure its success.

call for the revival of

credit,

economy.

fects, and is affected by, monetary

Program of 1951-52 was reason¬
ably effective. If conditions should
of

bankers

approach.

fiscal

upon

the health of the

savings

that it
govern¬

This

measures

to be generally agreed that
Voluntary Credit Restraint

program

direct

business

many

Adminis¬

clear

mental

seems

the

careful

engaged.

are

(2) The

management

concluding, I should like to

make three

the

broad wishes
that

Eisenhower

has

give

should

thought

combating inflation and

difficult

very

bankers

monetary they

freedom

fact, unless this situation does deflation.

develop, it will be
for

the

banks

ties.

Federal

omy is vital and has many
ramifications.
It
follows

(3) The
tration

be¬

can

<■

The Commercial and Financial Chronicle

...

(1022)

Thursday, March 5, 1053

capacity scheduled to get into
in 1953 total 860,000

production
h.p.,

Canadian Securities
in its Annual Business Re-

merce

past

stress

great

lays

year,

renewed exploitation

Canada's

natural

pansion and

ex-

ther industrialization of the coun-

lower unit prices for most of the
base metals.
■
' %
"Over a million horsepower of

capacity

turbine

hydraulic

new

brought into operation in 1952

was

based

industrializa-

rapid

recent

largely

very

natural

0f its

has

years

been

the prod-

uctSj either actual or
for

prospective,
In 1952,

resources.

about two-thirds of

instance,

the total capital investment in
manufacturing was based on prod-

to establish a new annual record, ucts 0f the forest and the mine,
the
and total production of electrical including $174 million in pulp and
Canadian Bank of Com- power
was
approximately 8% paper, $171 million in iron and
this develop"Commercial Letter"

try. In its analysis of

ment,
the

"The

of the resource de¬

scope

new

that

above

states:

merce

Many of the

1951.

projects were undertaken in

$74 million in non-ferrous
metal
products, $79 million
in

circumstance

petroieum ancj coai products and

velopment carried on during the

remote

past year was so wide that it can

which suggests that other similar-

v—

with

He-lit

line.

here

onlv

most

Progress

the

cess

raw

materials

dictated

the

past year's

activity

much

along this line. About 200 miles of
the 360-mile railroad leading from

with

Kitimat is

un-

that connecting
nickel deposits in the

way,

the

Lynn Lake area in Manitoba. The
Trans Mountain Oil Pipeline from
Edmonton

ahead

Vancouver

expected

and

schedule

by
while the line

completed

appears

August of this year,
from

Sarnia eastward to Toronto,

now

another

completed

use,

stage in the transport to market
of the products of the western oil
"The

potential

aluminum

production is being expanded by
widely separated construction pro-

northern

grams

Quebec

and

page

Subscription Television—Hope

1952.

addition

the

Ungava

deposits and the iron and titanium
deposits
the

new

the lower north shore

St.

Lawrence

bodies

ore

others

and

under

were

Quebec,

opened

were

investiga-

tion in widely separated areas
Ontario.

The

development of im¬

some

foot the bill, but since none exists
in broadcasting it falls upon John
Q. Public to pay for pleasing TV
fare."

The income from Phonevision,
added to the income from sponsored programs sold to local ad-

vertisers, could finance the profitable operation of television stations in hundreds and hundreds of
that

markets

other-

must

wise depend'upon the vagaries of

On the basis

tions

of present

upwards

Americans will
TV

service,

have

virtually

be without

station,

indicamillion
no

a near-

subscription

unless

television is established to finance

sman market

stations.

With

sub-

scription TV virtually all of these
neonle

could

within

reasonable

re^eption

time enjoy excellent

Turning to another phase of
TV's puzzling economic problem:

It is

assist

of certain of the other forms
development,

but

For

strengthened

"Partly because of the remote¬
resource

Assist

furnish

whom

wondering

possible to make

the
the

achievements,

oil

and

prairie

development

gas

area.

atten-

focused

Year-end poten-

tial

production in the western
provinces at about 300,000 barrels
day was about

130,000 barrels
in excess of the actual daily average production for the year, which
was necessarily held down pendmg transportation facilities suffia

cient to handle the larger volume,
Planned
—j
*•

however

are* expected

tekcfip

to
the lag 'within the next year
so.
Despite
work
stoppage

home box
economic

are

spectacular

continued

a
an

many

cial

how

use

channels

even

now

that

the

FCC

metering

systems, the educator
charge a "television tuition

fee" for certain

tion, to enable
college credits
make

courses

of instruc-

students

home.

earn

college degrees

pos-

four

United
was

States,

excellent,

over-all
new

progress

oil

and

gas

discoveries averaging two a week.
AU.

Although

domestic

requirements

have doubled since the end of the
war,

year

Canadian
provided

production
over

37%

last
the

relatively

some

small

adjustments

Federal Power Commission
Connecticut

and

that

the

full

years

would

armchair

thin

dime

entirely

our

products of

available
for

per

vista

new

one

open

public

service.

gave

compact area of 245 square miles cen¬

The city has the
income

for

per

The entire concept of subscrip¬
tion

and

television

leaves

with

Phonevision

profound feeling

commercial service

sist to television

as a

enas-

medium for

Joins Schirmer, Atherton
(Special to The Financial Chronicle )

BOSTON,

Mass.

—

lab-

fo?meriy
co.

and

Haris,'
Arthur

ler°

TV.

the

Jensen
en-

„

tertainment

the

forni^

choices

that

would

prevail

Under

a year-to-year contract it
supplies nearly all the
for Connecticut Power Company; and until recently,
Hartford also supplied some power to Western Massachusetts Elec¬

tric

Company and to Connecticut Light & Power Company.
Electric has had an interesting set-up for sharing
earnings, with a three-way division between employees,
customers and stockholders (with customers receiving the
larger
portion). A table in the recent "information book" given to ana¬
lysts shows the history of these dividends during the period
Hartford

excess

1925-46 (since which time

have been distributed).

none

now

...

affiliated

with
„

Even with

the omission of these "extras" in recent years, the
company finally
found it necessary to go to the Public Utilities Commission of
Connecticut in I the spring of 1952 and ask for a rate
first in 30 years.

There

increase, the
opposition from the public, and in
(with one

was no

October the Commission granted the increase requested
small exception in connection with municipal street
It

the fuel

estimated

that

if the

adjustment clause)

the increase in

new

rates

and

lighting).
charges (including

had been in effect for the

would have amounted to about

revenues

year 1952
$1,575,000.

Since the

new rates were in effect for
only about one-sixth of the
rough estimate indicates that if earnings were on a pro

forma basis the balance for

common stock
might have been in¬
cents, or from $2.81 to about $3.56.
The company has long been noted for its
stability and sound
financial structure. During the period 1942 to 1946 the common

stock equity ratio averaged

around 78%, but with the subsequent

issuance of long-term debt and preferred stock the ratio
dropped
to

44%

the

end

1952.

January, the debt ratio has

Including
now

risen

some

financing early in

47%, and the manage¬

ment thinks that ;it would be undesirable for the ratio
beyond this.

Hence, it

appears

financing

may

be forthcoming

earnings

prove

disappointing.

likely that
time

some

(Special

to The

SAN

Harris
Financial

Upham,

rise

common

stock

1953, unless

With King Merritt

Chronicle)

FRANCISCO,

Calif.

(Special to The Financial

BENECIA, Calif.

—

Joseph J. Bava, James J. Carroll
and Frank C. Sargent have be¬
come associated with Harris, Up¬
ham
&
Co.,
232
Montgomery
Street. Mr. Bava was previously

Casebolt
bolt
R.

Co.

formerly with William
& Co., and H. Irving
Co., in San Jose.

Akin-Lambert Adds

to The Financial

LOS

Chronicle)

Calif. — Neil M.
affiliated with First

OAKLAND,

Corporation,

Financial

639
of

to The

to The Financial

Chronicle)

ANGELES, Calif,

Alsup has been

staff

added

Jqhn
the

Akin-Lambert-Co., Inc.,
South Spring Street, members

the

Los

Angeles

Stock

Ex¬

change.

With E. F. Hutton

Joins McGhee & Co.
(Special

with

was

Lee &

Joins First Oakland

now

Bernard

affiliated

Staats

(Special

now

Fay; Mr. Carroll

with J. Barth &

(Special

Chronicle)
-

King Merritt & Co., Inc. Mr. Case-

(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—Paul

limitations of average family

budgets plus

In 1921 it acquired all the common
from Stone & Webster, but at the present
10%, which is not considered to constitute

Center Building.

With Hannaford Talbot

contrary—the

dominant shopping center for

power

Oakland

S
an l^er\iser would lose any
Part of his audience to subscnption

control.

firm

Rose

Co., Inc.

none of this

Connecticut Power Company.

™

Upham &
Warner

area

company

stock of that company
time it owns less than

-me,m"
A

The Hartford

maintains close relations with its neighboring
utilities, and in 1925 formed the Connecticut Valley Power Ex¬
change, the purpose of the pool being to coordinate operations and
obtain economies and greater reliability of service. The company
is also closely linked by a system of transmission lines with the

was

oratory presentation.

* mean to infer by

city, and the fact that it is

The

Mrs. Shirley with Hooker &

wUh

area

advertising,

campus

in the

not only "in the public interest" Three With

but that it also provides an
tirely reasonable and logical

The service

distinction of ranking
among cities of over
has a population of 310,000

family,

southern New England.

much

many

the confines of classroom

right

low

viewer,

^ ^
educational institutSns iould °fj- ?chirnletrJ, %hert°n &
aldWonai hours of ^ Exchangls ^Mrs
nance

service

delivery

make

entertainment
the

millions.

home

plant

Utilities

is considered very stable, having excellent business diversity due
to its industries, the many outstanding insurance companies located

creased about 75

Phonevision, would involve

audience

its

the company "a clean bill of
plant acquisition adjustments
future adjustments will be required by either

nation

pleasures of the minority—which
with

the Public

Thus the company has no

year,

St ofshorXof
Pro^
that.go far beyond
shortage or teZin
certain ecuin3
equip- lET
the scope
of the printed page and
during the steel strike in the

shrinking theatrical arts. The

our

af-

result of

ment

made
the

legitimate
theatre could then afford to cater also to the tastes and

This

sible for thousands who.can't
ford

shot-in-the-arm for

an economlc

that such

Using Phonevision and its

would

program-

mmg not yet seen on home TV
an(* distributing it to the Srass
roots level.of America would be

financially
of the spe-

has assigned to them,

can

the great

that

magnificent proportions
colleges
and
universities—

opening up
premium

reservoir

With

Colleges

mainly because of its continuing
tion

I believe also that Phonevision's

system

Channels

apparent that
can

real plus for

concerned.

everyone

office

petition between all types would
raise the level of both pay-to-seeit and sponsored television. And

*"*

fine programs.

important strategic materials.

ness

ing company systemr Perhaps'Tor this reason; the balance sheet
remained generally free of "write-ups." The Federal Power
Commission made an original cost study in 1943, and after the

The company serves a

thought.
I believe that the healthy com-

inde¬

has

tering around Hartford.

two or four hours a week watching Phonevision programs. The
rest of their TV times would be
watching regular sponsored programs. And this leaves plenty of
elbow room for the I Love Lucy's,
the Toasts of the Town, Meet the
Press, Jack Benny, Imogene Coca
and all other programs that have
a special significance to American
audiences watching a lighted TV
screen, to play to the much larger

that, I contend, is

as a

pendent company, never having been part of-a public utility hold¬

first

fringe area reception, pr do with- over-all audience that, Phoneviout entirely.
sion could develop,
If television is to„ serve .the,
SI would like to advance this

Canada's leading position in these
two

However, it has always remained

neighboring utilities.

100,000 population.

Saskatchewan and the Lynn Lake

development

interesting history, starting

"private stock company" in 1881 with only $20,000 capital stock.
Part of its growth has been due to continued mergers with small

people and contains 96,000 electric customers.

Cor¬

payouts.

sources:

Hartford Electric has had

and expects

"In the small tween "fee" television and "free
TV situation there must television would mean that the
well-heeled godfather to average family would spend only

portant uranium finds in northern
nickel

these

market

small town as well as the major
markets must have TV.
Here is what it means in terms
of people:

supply certain regional or special
requirements, this was slightly
more than offset by exports, with
the result that this country became a net exporter of iron ore in

dividend

generous

said, and I quote:

and not just a segment of it, the

way.

and

commission.

Of Small Town TV.Stations

Actual
production of iron ore increased
by about 11% in 1952 and while
ore
was
still being imported to
under

are

earnings

Company recently gave a talk before the New York Society Of
Security Analysts, at which time a book of financial and statis¬
tical information, together with the report to stockholders for 1952,
were distributed.
The following is summarized principally from

Commission

initial step large power de-

miscellaneous

stable

respondingly, price-earnings ratios have been well above the
general average.
President Kenneth P. Applegate of Hartford Electric Light

accounts

broad public interest of the nation

northern British Columbia, where

velopments

million

their

for

health."

small

fields.

from

generally

"tops" in New England, investment circles, due to a combi¬
nation of favorable factors. The companies have long been noted

company

Continued

Sept Isles to the Ungava iron ore

der

miscellaneous

million

also have potentialities. Additions chemical products."

deposits has now been completed,
and the branch line connecting
Prince Rupert and

steel,

situated undeveloped sites may

out-

larger projects exceeded expecta¬
tions. The need for tidewater ac¬

areas,

Light Company

stocks of the Connecticut utilities'are

common

rated

"Canada's
jn

The

and

Quebec

Manitoba.
^j011

Electric

Hartford

espe-

progress,

Ontario,

By OWEN ELY

very

was

electrification

rural

and

excellent

macje

daily

duction attained a new high level
of
$1,278
million,
$33 million
above the previous year, despite

basis for the fur-

1946.

the

factor in
economic

compared with only 9% in

''The total value of mineral pro-

along these

progress

prime

Canadian

current

lines

transmission

new

the

bank

The

resources.

ascribes the
lines

covering

Outlook,

and

view

total

Utility Securities

early construction stage exceed
two million h.p. Construction of
active

Com-

Bank

Canadian

Public

planning

either the

are

By WILLIAM J. McKAY
The

developments

other

and

which

Financial Chronicle)

(Special to The Financial Chronicle)

Otis J.

LOS ANGELES, Calif.—Harry

previously Ransby is now with McGhee &
be- with Hill Richards & Co.
Company, 2587 East 55th Street.

J. Makoff is with E. F. Hutton &
Company, 623 South- Spring St.

Street

was

CLEVELAND,

Ohio

—

Volume 177

Number 5200... The Commercial and
Financial Chronicle

Continued from page 4

viser

help much in personaliz¬
portfolio. An
investment
portfolio should be
ing

Investment Schizophrenia
in

Standard

and

Poor's

daily

—industrial index."
I

think

article,

referred

earlier,
Long in

Henry

Ansbacher
"Commercial
and

may conclude that
there is considerable
diversity of

Chronicle" Feb.

opinion among the experts
tive to individual securities.

Oils."

rela¬

"Funds

Portfolio Policy

data

held

nancial Chronicle"

Administered

startled by the headlines. On the
front page the two lead
articles,
side by side, carried the

are

Buying
of

balanced

The readers of the Oct. 23,
1952,
issue of the "Commercial & Fi¬

prbbably

12, 1953, entitled
of

the end

December, 1952. Among the 21

open-end

were

by
the

Financial

Accelerate
All

tailor-made to suit individual

tively

position
is
Securities' Fully

Group

48.6%

cash

rela¬

conservative

had

funds

and

Fund.

of its

This

Fund

portfolio in net

governments

compared

Over," and "Outlook for the Stock

to only 42.6% in common
stocks,
plus lower grade bonds and preferreds. By contrast to this bear¬

Market Is Bearish."

ish

following

headlines:

"Bull

Market

Not

The captions

referred to talks given on Oct.
21,
1952, before the Association of

Customers' Brokers
neth

Ward

Hughes.
the

by Mr. Ken¬

Mr.

However,

only

the

and

who

ones

outlook

for

International

stock

Economic
a

liam

which

lined

Baxter

Research

letter from Wil¬

follows:

the

first

sentence

"...

Look

markets

large

coming

for

letter

decline

which

number

of common stocks
will turn out to be worthless
.

decline

that

destructive

will

than

far

that of

the

1929

crash."

Others

also bearish

are

outlook.

Value

in their

Line's

"Fort¬

Diversified

Fund

ment

Inc. had

net

cash

and

stocks,

and

closed-end

had
in

risk

drop re¬
We continue to ad¬

mains large.
vise
in

serious

These

further
folios

clical industries

mercial

valued

stocks

tries, such

and

growth

electronics

indus¬
and

air

transport."

the

forecasts, the

comparing

other

Value Line Supervised Account I
was as of Jan.
19, 1953, invested

the order of the

41.2%

in cash.

Others
Value

were

Line

not

and

bearish

Baxter

"If you are a typical individual
stock investor, we advise
you

continue keeping the larger part

in good com¬

This should be done under

mons.

protective shield which consists

(a) sticking to several progres¬
companies, (b) being willing
exchange overvalued stocks for

sive
to

others

that

are

conserva¬

tively valued, and (c) keeping a
buying! reserve of stock money

temporarily invested in bonds. A
good point about the recent stock
market is that widespread or in¬
discriminate speculation has been

lacking."

of stock prices is
yet to be

determined, the technical position
of

the list

seems

fundamental

dominantly

improved

factors

remain

and
pre¬

sub¬

stantially invested position in

se¬

Certainly Moody's and Standard
and

Poor's foresaw

ish

indications

Value
find

Line.

bulls

and

did Baxter and

bears

you

even

can

among

the investment services.

Another item of interest in

nection
at

the

with

our

degree

cursory

con¬

glance

are

all

from the excellent

longs

had

has

completely free basis

there

was

are

to slow

been

services,

nor

sore

intermediate
Data

not

for funds

the

York

that
the

were

tion

focused

was

them for the

part.
Third, many other services have

been

omitted.

services

were

phasize

the

Those

omitted which

technical

market.

investment

Also

em¬

aspects

many

other

services which emphasize intrinsic
value
of
individual
securities
based

qualitative and

quanti¬

tative

analysis were omitted.
Fourth, it is possible to find in¬

vestment services and investment

portfolios

suit your
of

own

indi¬

bearishness

Fifth, investment companies

are

sense

bullishness.

form

small

degree
unanimity of investment opin¬
ion.
This
shows up
both in a
diversity of investment opinion
a

individual

securities

and

concerning portfolio policy.
Do these conclusions

does

not.

has

and

1947-48

year

President
School

the

New

Boards

Asso¬

DENVER,
Wilson

Colo.

now

securities

Robert

—

engaging

business

the

indi¬

vidual dealer from offices at 1717
Colfax

Avenue.

was

partner in Hicks, Wil¬

& Co.

son

E. I.
(Special

this

cautiousness

far

with

It is believed in some quar¬

the money markets are

whether
of

added to.

believes it

one

stock

common

This

seems

monetary authorities
loans.''

appear

these
not,

will

to be

are

result in

joined

the

new

going

on.

the

government

Administration

was

staff

Of¬

Sumner have

Waddell

the

concern

'■

V "'

'»

that the
'

«"■'

'•

•
*

bond

market

U. S. TREASURY;.

STATE

;

departure from

what had

-—arid

been

A change in the method of financing was expected and

MUNICIPAL

the financial community was given what

it was looking for. How¬
the initial attempt to move out the maturities of government
obligations was not something to throw one's bat in the air about.
Most of the owners of the maturing treasury certificates went for
the short-term 2V4S, and liquidity preference is about as strong
now as it has ever been. There is not likely to be much of a change
in this demand for the most liquid treasury obligations as long
as the uncertainty which has been in the money market continues.
If the down-drift in prices of treasury obligations goes on, will it
be possible to sell a
bond with a maturity of about six years,
in the future? It is believed that the Treasury will continue to use
a two- or three-way stretch in meeting maturities as the year goes

ever,

SECURITIES

Long Bonds Remain Under Pressure

than

The

mean

that

astrology? No,
investment ad¬

sharp decline in prices of the longest government obliga¬
tions, which has taken them to new lows since issuance, has come
about, according to reports, on not too sizable volume but at times
it has been large
have

marked

Aubrey G. Lanston
& Co.INCORPORATED

enough, however, under existing thin markets to

influence upon quotations.

Dealers and investors
positioning while the trend seems to be
so definitely on the defensive.
There is no incentive to put funds
into outstanding long-term treasury securities while the rumors
persist, and they evidently eminate from good sources, that before
the year is over the government will be offering 3y4S, 3%s or even
3M>%' bonds. ' ' ' '* v '
' ''
:
* " are

Reed, Inc., United States National
Bank Building.

concerned, the
offering of split maturities to take care of the first refunding of
far

Colo.—Herschd

ficer and James A.

Liquidity Prime Objective
-,-"-As

Company,

taken for granted. How¬
increase in margin pur¬
loans and deposits being

Shelley

(Special to The Financial Chronicl*}

to have about the general trend of
■

any

bit contrary to
*

Chronicl*)

Cramer Building.

DENVER,

with its implied
concerned, and espe¬

cially the demand for loanable funds, what does Federal do, but
margin requirements for the purchase of common stocks
from 75% to 50%. There are the usual reasons given as to why
the margins were lowered and

Financial

Two With Waddell & Reed

reduce

ever,

Ernest &

rediscount rate,

the

Shelley Adds
The

DENVER, Colo.—John T. Sudbay, Jr. has become connected

phases of the loan trend.

increase

on.

there

better

Traders

graduate of

Opens Own Office

The

loans.

The

anent

Na¬

Secu-

(Special to The Financial Chfonicl*}

formerly

panacea.

Sixth,

1936?

the

School

the

State

This

resort to direct controls may have to be made in order

After

their

atten¬

the rediscount rate will slow

small increase in

readily available
so

Co.

ciation; he is also a membeh of
the Regents Advisory Council.

However, there is considerable question as to

recommendations.

purchase suggestions

High

served

spots in the loaning picture are consumers borrow¬

to curtail certain

been

even

ngel
of
I.

resident of Freeport since

change in Administration, and

down the demand for loanable funds.

made of sale recommendations of

the

Treasurer

rity

1906.

Contradictory Policy?

the demand

down

whether

chases

has

Smith

Freeport

mean that there is danger ahead and a warning
being sounded by the monetary authorities which should be
Such an upping of the rediscount rate might also result
eventually in higher interest rates, which might have a tendency

to the broader

mention

sympathetic

understandable.

Stock.

tional

long ago, the Federal Reserve System increased the
1%% to 2% and an increase in this rate is

ters that

little

that

Clifton

What

ment

data

ing and mortgages.

professional investment advice is

The

the

the New

and

generally taken to

for

assooiated

was

heeded.

unanimity of
opinion among the experts is the
portfolio policies of the invest¬

companies.

Not

refer to the selection of indi¬

doing.
Second,

tion,

elected

rediscount rate from

question of portfolio policy. You
don't make money in Wall Street
by doing what everyone else is

such bear¬

appears

prices

presented?

c a

Pont

markets were among the various segments of the econ¬
omy that would be put pretty much on their own as soon as pos¬
sible. This has been fairly well accomplished, even though there
had been considerable freedom in the money markets before the
change in political parties took place last fall.

ment success. This is true whether

vidual securities

Board of

Edu

Francis

you

Free-

port

firm

the money

need go

member

the

Exc h

East

City, Feb.

York

getting away from

indicated when

was

gather from

observations

vidual

stocks."

common

the economy

First, an eclectic point of view
by itself is no guaranty of invest¬

the favorable side.

We continue to recommend

lected

may

in Atlantic

held

of the

Associa¬

with

most

of. Investment" Policy
in !these
words:
"While
the
immediate
course

com¬

What does this all mean?

Also on?Feb.

2, 1953, Standard
and Poor's in their/'Listed Stock
Reports" concluded their analysis

decline

so-called

conclusions

tion,

meeting
Boards

developments that have taken place for the purpose of returning

further.

the

annual

School

the year 1953.

because it is not easy to figure out the various moves
been made by the monetary authorities.
To be sure,

have

port¬

such

seems

day,

the

National

was

The money markets are about as confused as they ever have
been

Conclusion

Interna¬

Moody's, Feb. 2, 1953, stated:

experts

tional Economic Research Bureau.

of your stock
money

the

among

Nat'l School Boards
At

Governments

uncertainty likely, these issues will be well bought.

our
point that di¬
investment
opinion

very

the shorts and the intermediates. However, there is a
demand around for the near-terms and, with continued

good

lege endowments, fire insurance
companies, etc. However, if we
made

C. B. Smith Heads

make it grow at
creditable rate.
In the
can

effect upon

banks, pension trusts, col¬

versity

can not only
portfolio from deprecia¬

Association.

The

topic

the

investors

trust funds

common

have

In line with their

others.

Nonetheless, the sharp decline which has taken place in the mar¬
ketable long-term issues, on limited activity, has also apparently
brought to an end the "orderly market" which the monetary
authorities in the past had indicated would be part of the policy.

97.5%.

'this

pursue

art, some men do better than

any

over

interim

are

should

or government bonds,
undervalued, or at least rea¬
sonably priced stocks in non-cy¬

(b)

had

And in

science."

them because of prices
moving up sharply. Evidently, the belief that the Treasury will
offer a long-term high coupon obligation in the future is keeping
the pressure on the most distant maturities of the outstanding
obligations. Volume, according to advices, has not been large,
although there have been blocks of bonds in the market for sale.

of the stock market this week.

Reporter

long-term treasuries

certainly not
expecting the bottom to drop out

strongly defensive position

(a) cash

fellows

tion, but he

mistakes

Mr. Smith

companies

eral

...

But

"Investment

said:

well

government market is on the defensive and despite some
attempts to improve the trend of quotations from time to time,
there is no evidence yet that buyers are concerned about the

this

Service

the tifhe.

art

period of time he

protect

can

who is right more

one

over,

Dewing

The

of their portfolio
stocks, lower grade
preferreds. American

Public

half

average.

By JOHN T. CHIPPENDALE, JR.

high

has

and

the

year

that

President

90%

over

common

bonds

obvious

Our

category was
the 84.8% of Tri-Continental. Five
11

right six

are

percentage in
common
stocks, lower grade
bonds and preferreds.
Among the
11
companies listed, the lowest

the

professional

the

also is

than

others-

after year. The reason
they are human. More¬
as Professor Arthur Stone

ances

12-14, Clifton B. Smith,

their

percentage

ten

it will provide a satis¬
through his analysis and through factory yield.
Some investment
his
constant
supervision.
It
is advisers, some investment com¬
much easier to avoid the mistakes panies, some investment services,

com¬

uniformly

International had 96.3% and Gen¬

sliding off from the
highs of early January.
The

avoid

nightly Commentary," Feb.
16,
1953, stated: "The stock market
been

thermore,

compared with the balanced openfunds

out

much better job than

Moreover, the good ones tend ta
maintain their superior perform¬

plus

The closed-end investment

end

times

industrial

man

preferreds.
all

doing well if they

an¬

marketability, tax exemp¬
tion, hope of appreciation, stabil¬
ity of market values, etc., much
can be
done to adapt a portfolio
to individual requirements. Fur¬

Fund

governments

were

for

our

alleged

are

gree of

whopping 80.3% in comm on
stocks, plus lower grade bonds

panies

The economists of

corporations

person

Perhaps the successful investment

only 3.3% of its portfolio in

and

speculation

governments and

common

one

Invest¬

Diversified

and

for

By considering the factors
of yield, stability of income, de¬

lower grade bonds and preferreds.
Also bullish was the position of
National Securities Income Series
with

re¬

other.

only 2.1% of its portfolio

net cash

74.1%

Part of

the

serious

head¬

was

Bust in Common Stocks."

was,

market

portfolio policy.
1952, the Baxter

Bureau sent out
J.

they are not
disagree on

the

and consequent
On
Oct.
2,

James

position,

might

securities and the proper portfolio
balance.

A security that would

investment

are prone to make, than
always to select the proper

investment

quirements.
be

laymen

can

15 BROAD

not inclined to do any

ST., NEW YORK I

WHitehall 3-1200
131 So. La Salle St.

45 Milk St.

CHICAGO 4

BOST.ON 9

ST 2-9490

HA 4-446S

•

The Commercial and Financial Chronicle

(1024)

with

plicant

complete without life insurance,
Gillespie traces savings bank insurance laws going back

policyholder's savings
account, eliminating the need to
remember
and
take care of it,

savings

commission.

plan

blush

types of insurance with a savings program to meet definite
individual circumstances are many and varied.

offered

now

the

service

would

savings

first

that

to be foreign

appear

busi¬

our

would

ness

purchased

savings
gram

without

out

Only

work in

New York

low

Charles

considered.

Gillespie

savings

cluding

in¬
did not
bankers

program

insurance

life

savings
The history

with

originate

themselves.

sav¬

paid
after

most

been

paid, with industrial policies
having
no
loan
value.

usually

pating

Its

report

impetus

gave

nation-wide demand for
ficient management in

companies

ance

ef¬

re¬

Louis D.

Brandeis, then in the
private practice of law in Boston,
later to be

Justice of the United

States Supreme Court, had repre¬
sented policyholders of one of the

insurance companies and after the

report,

undertook

work

economical ways

ing life insurance to

out

of supply¬

wage earners

than

the type of insurance they
generally bought, namely, indus¬

trial insurance.

careful

study

turned

the

mutual savings banks as
non-profit institutions with a long

record of

careful

management of

the public's funds.

campaign of edu¬

labor,
employers,

enacted

the

first

savings bank insurance law.
New

York

ance |

years

later

passed its

Law,

and

past

for

future

each

year

Life

1938

Insur¬

Connecticut

the

examinations

central

Life

1952

worth

there
of

was

Savings

Insurance

force

representing 623,018 policies.
It is sold by 168
savings banks
in

Massachusetts, 66 in

and

31 in

The

New
term

made

by certi¬

fund

managed

with the consent of the

has

Governor,

responsibility of the

derwriting

un¬

prescribing

uniform policies and

forms to be

used

One

the

banks.

the

important functions of the

Savings

Life

Bank

Insurance

Fund is in handling the mechanics
whereby the year's mortality ex¬

perience

unified

the

between

New York

funds

Insurance Department

responsibility of each savings

bank

and

same

manner

invested
the

the

type

policies
range

offered

Department

are

endowment at 65. Children's
poli¬
cies are also offered as is
group
insurance. The maximum amount

Possible in New York State to be
♦Paper

presented

Savings

auspices

Bank
the

Mr.

Gillespie

Forum

Association

Women, at the Town Hall
City, Feb. 24, 1953.

York

under

Savings Bank and
for

the

are

liable only

liabilities of the

Life

In¬

Department. Likewise the

the

liable

Club,

the

entire

helpful

having

stick to their objective.
Varied

Savings Department

only for the liabilities

who

sell

the

life

applicants must
tion

and

the

licensing

pass

certified,

possibilities
different

ance

with

types of insur¬

Likewise

varied.

and

many

the

understand¬

the different types

ing of

program

definite set of

are

of in¬

which

can

bought and

exploring these points

our

could

the

take

the

take

hours.

time

for it

could

Nor

cover

many

details

technical

■

Company.

paid to the
The
sure

life

no
no

them

■

with

•

commission

person

possibility of

selling it.
low

elected

pres¬

objective discussion of
insurance needs of the

Daniels,

Per¬

election

Perkins,

was

and

the

Bell

Charles

Frank

Midland

New

York

March

Trust

James

Sylvania

Electric

President

Mitchell,

Inc.,

Products,

member of the

announced

Feb.

Electric is

lighting,

radio,

who
of

and

meeting of

Mr. Mans¬

assigned to the Mid

Southwest, while.Mr.

will

Stetson
sent the

Blaine,

continue
in

bank

the

repre¬

Middle At¬

lantic States.
*

27.

company

fields.

Mr.

Mitchell,

is the recipient of a number

honorary degrees, early estab¬

lished

South

Company

Sylvania
John T. Madden, President of
in the
television,
and the Emigrant Industrial Savings

major

electronics

field is newly

The

announced

was

the Board of Directors.
Don

Stetson,

Vice-Presidents

President, following

director.

Marine

Bank,

New

Feb.

Trustees

has

Roll

reputation

country's

York,

that

announced

the

Board

appointed Edwin D'.

Vice-President of the Bank.

one

outstanding

vania

organization as Vice-Presi¬
charge of sales in 1942; he

of the

Executive

with

Emigrant after 16

the

New

year

elected Presi¬

was

York

years

Com¬

Trust

pany.

1946, and in May of

January,
same

Vice-President

with the

The

Sav¬

Peoples

National

Bank

Mr. Mitchell began

dent.

you.
" i

•

ness

joined

Director of Nylok

Time

eral

{

when

career

Corp., Gen¬

Corp., National Biscuit

The merger of the Garden City

Co., First National Bank & Trust

Auchincloss, Parker Branch
NEW

closs,

CANAAN, Conn.—Auchin¬

Parker
of the

bers

change,

Redpath,

New

mem¬

Stock Ex¬

York

Co.

Summit,

Thorn

and

Electrical Industries, Ltd., London,

He is also Chairman of the

Eng.

American

Management

Associa¬

tion's Executive Committee and

the

Bank & Trust Co. of Garden City,
N. Y. and the Bank of Great

Great

charter
&

Neck,

of the

Garden

Co.

Trust

and

Dickson of New

columns Jan. 8, page

both

Canaan

and

Ed¬

Gilbert, Jr. of Stamford,

partners

of the

firm.

Resi¬

dent manager of the office will be

Joseph
dent

Clarkson

Darien.

Director

and

Lead

Company,
Broad

Bank

pany

nounced

New
on

Cffice

York,

March

Com¬

was

an¬

$ by N. Baxter

CITY, Mo.—Herman Jackson, Chairman."'Mr. Reid also
O. Simon will shortly form Her¬
is manager of thel&Fitanium Di¬
Simon

Co.

engage

previously

with

tryThomas J. Shanahan, President

Prescott,

Wright, Snider Co.

Sonora Products Co.
(Special

SAN

The

Financial

Chronicle)

FRANCISCO,

Federation

the

Sonora

Products
a

Company

securities

offices

Officers

400

are

nounced

business
K.

Hum¬

capital

stock,

price

each)

$20

has
25.

FRANCISCO,

Harold W.
staff

gomery

Street,

New

York

ap¬

Stock

Exchanges.

and

Elmira,

$10

noted

these

(page 836) plans

capital of the

$1,500,000

approved

were

James

—

the

Francisco

)

Co.

Trust

died

Hon¬

of the Board

Bank

Feb. 27 while

suddenly

driving to his home

Montour

Falls, from his office.
74
years
of age. iMr.

was

also

was

Chairman

of the

mittee

$2,000,-

by
on

com¬

the

State

dent and
Bell

has

and

Dingman, Vice-Presi¬

General Manager of the

Telephone Laboratories, Inc.
appointed to the Ad¬
Board

8th

Avenue

the

14th

Office

Street
New

Elmira

law

Smith

Corona

for

number

until he became President of

years

the Second National Bank in 1913.
He

elected

was

Board

the

came

the

Chairman

of: the

when

it 'be¬

bank

First

Co.

Trust

National
1929.

Bank

became

Honorary Chairman of the bank,
&

known

Trust

was

the

York

State

Bank

Mr. Turner

President

also former

New

Elmira

Co., in 1948.

Bankers

the

Asso¬

ciation.

Jan. 15.

been

visory

Typewriters, Inc. The Associated
Press
reports that he practiced

The

Co., 425 Mont¬
San

(par

Chronicle)

members

the

Banking Department

Marsan has joined the

Davies

Feb.

from

pany

Calif.

109 and Jan.
ft

Chairman

Elmira

now

000

SAN

the

25%^as of closing

to increase the

Secretary-Treasurer.

oversubscribed

was

Vice-President; and P. H.

Small,

the

new

offered

was

record

been

approximately
Feb.

per

columns

Financial

an¬

2^ibat the

whic^

stockholders

phries, President; A. S. Glikbarg,

to The

York,

New

Feb.

Trust

Alabama

Bank

issuemf 50,000 shares,.of additional

Calif.

Board and of the Executive Com¬

the securities business. Mr. Simon
was

these

Samuel Gilbert H. Furner,
orary

the

appeared

296.

page

Turner

vision of National Lead.

title

new

Reference

plans

❖

elected

&*?Trust

KANSAS

man

22,

Advisory Board

Street

Feb.

merger

National

has been

member of the

Chemical

Simon to Form Own Firm

Reid, Vice-Presi¬

Hugh

the

City Bank

Long Island Trust Co. became ef¬
fective

ward. H.

Neck,

under

the

opening of Trustee of the Committee for Eco¬
a branch at 23 Cherry
Street, un¬ nomic
Development.
der the supervision of Charles K.
ft
ft
tt
announce

(Special

salesman calls.

elected Vice-Presi¬

Director

Assistant

firm

law

Daniels

kins,

became

Davies & Co. Adds

that

the

dent in

though

introduction

small

low cost.

The fact

Mr.

his busi¬ Trust Co. of White Plains, N. Y.
the has increased
its
capital from
Publishing
Com¬ $500,000 to $700,000 effective Feb.
ings
Bank
Life
Insurance
has McGraw-Hill
raised any questions in your mind, pany, in a short time becoming 20.
Of the increase $100,000 was
I suggest you stop in at the Sav¬ manager of its industrial site serv¬ brought about by the sale of "new
ings Bank Life Insurance Bank ice bureau. In addition to being stock and the further $100,000 in¬
and
Director
of
Syl¬ crease resulted from a stock divi¬
nearest to you where they will, President
I'm sure, be most happy to dis¬ vania Electric, Inc., Mr. Mitchell dend.
Insurance

this

Street.

becoming

Its added values.

The fact that

Freeman

Its

partner

joining of Savings Bank and Life the

engaging in

are

Di¬

companies.

of the
marketing Mr. Roll, a graduate of Colgate
type should be pur¬ executives, and has broadened his University, has been in the New
chased
is
an
interesting study. activities to other major manage¬ York banking field for over 20
However, time does not permit ment phases. He joined the Syl¬ years,
and
becomes
Associated

Attractions

Vice-

each

when

examina¬

agents.

Gradually people

March

Company,

insurance

became

formerly Assistant Treasurers,

Daniels

Board of Directors of Irving Trust

combina¬

savings

circumstances

insur¬

similar

life

Freeman

Company, of New York, the bank
The

tions

—

The

has been elected

Possibilities

was

and

Mansfield

which,

program

Pennsylvania

Telephone Laboratories and ap¬
pointed General Manager in 1952.

impetus of compulsion

course,

person

discuss it with prospective

ance or

Bank

New

prescribed plan tends

add

Savings Department.

Those

at
the

com¬

sepa¬

rate and distinct from those of the

20-year endowment poli¬ acquainted
with
Savings
Bank
cies and include
straight life, 20- Life Insurance and they realize
year life, life paid up at 65 and
what it offers, in short:

the

ings with
to

pre¬

savings banks.
However, the assets of the Life

five-year

been

of life insurance and regular sav¬

Frederick

law

long

means

pulsory savings. The combination

from

scribes for

Connecticut.

York

has

Insurance

and

dent

insurance
the

the

Co.

1950

Dingman

accumulate

and

elected Vice-

was

rector of the two

desired.

savings

cuss

the

of the

developed to the point where

Bank

Bank Life

Savings Bank Trustees appointed
by the Superintendent of Banks

assets

$684,686,000

Savings

fied local physicians.

Savings banks took to the idea
slowly at first but gradually it
of

that

Physical examinations are re¬
quired on the adult policies with

surance

end

estimates

dividends

years,

favorably have been paid

compare

has

the

considered

Insurance

about 1941.

on
nor

listings of dividends paid in

The investment of the

cation backed by organized
civic groups and many

Thirty-one

dividends

company,

the

Massachusetts

partici¬

any

policies cannot be guaranteed

the Life

Law
a

with

Co.

desired

the

provide

surance

Although,

banks.

First Savings Bank Insurance

In 1907 after

policies at the best hav¬

the end of the third year.

many

After

with in¬

year

Insurance.

sponsibility to policyholders.

arrive

Dingin

President, of Operations and

which

amount

deposited each week or

protection

In 1949 he

Mr.

System

and the Diamond State Telephone

savings ac¬

one

the

meet the need of

second

cash surrender value until

the insur¬

greater

and

ing

the

Committee.

sel for the

end

cash surrender value at the

Evans

Hughes, later Chief Justice
Supreme Court, was coun¬

life policies usually al¬

Ordinary

dustrial

of the

ordinary life insurance

policies, loan values are available
after two years premiums have

the New
York
Legislature, the first
thorough investigation of life in¬
surance
in this country. Charles
for

surrender

six months' premiums are paid.

low

Committee

after

values

loan

offer

cash

ings bank life insurance goes back
report in 1906 of the Arm¬

to the

month

Life

policies in addition to being

cost

savings banks being able to offer

considered

value

and

are

should

year's premium has been

savings of the

complete

Values Offered

Loan

The

nation

strong

are

because

liquid

idea

due

with

only make this required de¬

insurance.

The

Bank

through

count

Manufacturers
Trust
Horace
C.
Flanigan,

President of Personnel of the Bell

can

posit

there

the

handled

foregoing

need

that

paid

equities

items

Company,

President, announces.
man
joined the Bell

Telephone

the

York

Trust Company of New York held

1922.

com¬

the

meeting of the Board of
of City Bank Farmers

Sav¬

States

sales¬
are employed. The applicant
at the bank to apply for the

which

calls

when

All

buy

least

not

Directors

ings Bonds.

Bankers

and

ETC.

insurance.

the

Life insurance

large

some

factors,

missions

are

all

figured in advance so that
depositor and policyholder

many

low

are

OFFICERS.

many

goal,

rates

BRANCHES

CAPITALIZATIONS

savings

Premium

com¬

live
can

Savings

NEW

Savings account.

total

State

develop

which includes
the following:

person

Purchase of United

person

who

those

State

York

men

total

$25,000.

life insurance.

one

any

offer

Life

Life Insurance.

pro¬

plete

take

may

one's

$5,000. In Massachusetts

New

life insurance.
Yet

that

opportunity

the

banks

banks,

plus

absence of salesmanship, and no sales
Maintains possibilities of combinations of differ¬

imagine that of all the

CONSOLIDATIONS

NEW

the

from

As attractions he lists low

values.

News About Banks

policy

REVISED

program

Describes loan

1907.

I would

germane

cost, added values,

services

life

to savings banks since no

one's

ent

after

that

has been pur¬
chased
arrangements
may
be
made so as to have the premium
when
it becomes due
deducted

Asserting life insurance is
Mr.

insurance available.

fact

insurance

Assistant Secretary; Ilarlem Savings Bank

the

Plus

By CHARLES GILLESPIE*

outlining of the

types of life

Savings Bank Life Insurance

Thursday, March 5, 1953

...

Oswego

Bank of
mon

County

National

Oswego, N. Y. with com¬

stock of $625,000 was

merged

(effective Feb. 6) with the Syra¬
cuse Trust Co. of Syracuse, N.
Y.
under

the

charter

the

latter

and under the title of the Marine

Volume 177

Number 5200

.The Commercial and Financial Chronicle

(1025)
Midland
tral

Trust

New

Feb.

Company of

York,

according

"Bulletin"

troller

appeared in

our

plans to this end

First

of Feb. 12,

issue

noted that the

had

filed

with

Department
its

capital was to be increased
$1,800,000 to $2,550,000.

from

The

ports

Bank

Treasurer

and

Meriden,

members

staff,

>1:

Puritan

Company

Trust

Conn,
its

Kenefick,

and

re¬

official

named

and

Treasurer.

Edwin

The

heretofore

was

Assistant

sale

the

capital

Bank

Texas

Bank

as_of
National

veston,

according to

Bank

o£ the

the

last

Assistant

Treasurer.

investor.

the

Comptrollen-oi the Currency.

I would

like to preface my reby stating that much glamof many businesses or
profes-

marks
our

sions
The

sale

stock

$250,000

lies

making

the

capital

feel

effective

Feb.

"Inquirer"

March

that

Harry E. Johnson, has been ap¬
pointed Auditor of Philadelphia
National

Bank

Philadelphia,

Baii|jpi$f

The

ruary.

1
Glenn
the

Morris, President

National

Bank

German-

town & Trust Co. of Philadelphia,

died suddenly on March 1. He was
55 years

of age. According to the
Philadelphia "Inquirer" Mr. Mor¬
ris

named

was

President

the

at the end

an¬
S.

the

with

Bank of

Federal

Reserve

Philadelphia. He

was

As¬

sistant Cashier at the Federal Re¬

elected

head

has

The

Director

-iBank

Canadian

C.,

Commerce,

office/Toronto.

Mr. Kelley

partner of Borden, Elliot, Kel¬

ley, Palmer & Sankey, barristers
and

solicitors,

also

tion,

of Toronto.

Director of Brazilian Trac¬

Light

Power

Company,

pointed

Manager

General

bank's

the

fice and Keith

Alberta

Assistant

head

of¬

B. Smith has been

superintendent

the

Richard

Bank

of Directors

Trust

and

of City

Company

containing,

BANK

BASLE,

000

resolution to issue 15,-

additional

the

in¬

stitution's capital stock, subject to

approval of the shareholders.
A
special meeting of the sharehold¬
will

ers

ture

called in the

vote

amendment

upon

fu¬

near

puzzle.
Papa Dionne felt
right at home when the real es¬
man

share for each two shares

held.
incorporated in

presently

City

„

Bank

1934.

was

John

President, points out
that deposits in 1940 were $4,671,Heckman,

Sw. francs

S^. francs

Dec. 31,'52

Dec, 31,'51

banks

that he and the realtor

National

The

Baltimore,

Bank

has

tal

of Feb.

ing of two distinctly unrelated
ticles.

And the bond

taps, vicks or tunnels can throw
his listener into utter confusion as
to

whether

drugstore

Cleveland,

City

Ohio,

Bank
a

capi¬

$14,000,000 as of Feb. 5, in¬
creased from $12,000,000 through
the sale of $2,000,000 of new stock.

the

A stock dividend of
served

$250,000 has
enlarge the capital of

$1,000,000
$1,250,000 effective Feb. 5.

City, Kansas, increased

its capital as of Jan. 14 from $850,000 to $1,000,000 by a stock divi¬
*

ward

four

passed

47.

the

bonds,

away

exist in

confusion

the

was

wish to clear up
that always seems

the minds of

Investment

holdpr and

few

Financial

Colo.

has

loans'his
nis

the

debtor

Philadel¬

terest for

his wife

assurance

occurs.

future

fixed

money

rate

fixed time with

in¬

some

prior claim if trou¬

stockholder

common

business

the

guarantee

Gladys

—

Service

to
to

monev

fixed

with

interest

principal paymen

nor

and has

Chronicle)

joined the

staff

Corporation,

Nov^

first

—

something

FouffactorT must

bonds

sidered:

The

(1)

about
be

con-

(2) the
(3) the
the interest re-

debtor,

security behind the debt,

Street.

Sherman

stockholder

common

bondholder
bondnoictei loans

ble

The

Investment

maturity and

With Grimm & Co.
(Special

The

Financial

PALM

WEST

(4)

As to the debtor,

BEACH,

Fla.

—

tions of

Ths

Financial

Chronicle)

MACOMB,.ill.—John
now

Street.

C. Shank-

with Francoeur & Com¬

Inc.,::3,i38

pany,

Staff

Edward

South

the

and

U. S.

its instru¬

mentalities,
(2)
obligations
states and municipal bodies, under
and

Francoeur Adds

there are three
(1) Obliga¬

classifications:

broad

Chronicle)

which

(Special

are

included

authorities

commissions

creating

debt for

(roads, bridges,
tunnels, etc.) and (3) corporate
obligations such as telephone com¬

special

purposes

panies, electric light and gas, rail¬
roads and other business corpora¬

tions.

—j,®

Link, Gorman Co.
,"

has

•(£&-

Gorman,
La

affiliated

Pe^k

with

Co.,

Street. He

Salle

Bache'

Noonan

with

Link,

South
formerly

208

was

credit of the

few

certain

cases

taxes

issuer,

revenues

collected

against the debt.

some

are

pledged

The broad

name

applied to this group is unsecured
bonds.

Co.

AiJz.

security: The security for
payment of governmental and municipal obligations is only t at o
the

Th^ Financial Chronicle)

become

Jan.

17:

Ed¬

(Special

S. Yantis Co.

general pledge

The

Financial

assets

CHICAGO, 111.

bonds.

Chronicle)

Reed, President; Greely

Ziegler
with F.
South

has

—

become

Joseph J.
connected

S. Yantis & Co., Inc.,

Salle

Street,

of the Midwest Stock

secure^ the loan,
^

and

such
In

135

members

Exchange.

are

such
.

Watson, Vice-President & Trust
Officer; W. B. Fitch, Vice-Presi¬
dent & Cashier; L. W.
Mivelaz,

longer bonds
him

compensate

and

for

partially

the

added

prices

end

ones.

on goveminent bonds is about 2.14% for

1-year maturities, 2.40% for 5-year
and 2.80% for 19-year.
Now for

the second point. Who

dividuals

called

cases
,

secured

where

*Paper presented
Savings
Bank

by Mr. Holton at
Forum
under
the

And

on.

each

City,

Feb.

24,

1953.

three

balanc-

forecast
this

slight

investment

funds

increase

toward

which

year,

econ-

the

would

make for increased values. Some
of you may be interested to see
if this becomes a fact in November
December.

far, I think you will agree
that this is a very simple business,

this

the

last—horn

To the

the most

seems

be-

average

difficult, when

purchases the type and maturities

as a

All you do is to listen to someone

fit

its

picture.
Let us
tonight consider the first three.
own

The

demand

mercial

banks

ment

liability of
immediate

com¬

deposits

pay-

unlimited

that

pnn

can

with

liquidated

small

quickly

matter of fact it is the easiest.

talking of

a good investment.
Go
to Hilda's bank and draw out your

money and buy this investment.
When you find out in a week or

amount together with the demands two,
for
busmess loans
requires bonds that
thjif
nr(lli/ia+0/1

or perhaps even the next day,
you cannot sell your investfor what you paid for „•+
it,

ment

depreciations

you are

in such amounts necessary to meet
their demand.
As a result, such

isn't it?

none

banks seldom go

maturity
fine

and

a 5-year
large part con¬

themselves

bonds

because

then

investor.

Simple,

beyond

thebbetter

Hartwig Baruch

government

Uq_

Hartwig N. Baruch, famed
actor

in the

'90s

and

as an

banker

uidity' The avera8e len§th o( from 1903 to 1938, passed away
bond P?rtfolioa in New York City at his home in Coral Gables,
'(S,ubou} tw<J years,( Th<; Florida, at the age of 84. Mr.
fac
on
demand
accounts
eliminates
dcmand^accounts^eliminatls
3 br0ther o£ Bernard Many urge for excess
the bond portfolio.

interest

Baruch,
was

was

York

by law and by the nature of their
business.)
By law they can de¬
mand

60-day

drawal.

notice

Although
would

this

has

have

used

widely in 1933 had it not been for
the Bank Holiday, it protects the
bank

from

times

saver

from

wholesale

panic.
it

attracts

and

again

the

long-term
itself

deposits,

of this type of deposit
savings banks do not
be excessively liquid.
A

Because

liability,
need

15%

position of cash and short-

term bonds

going
term
the

seems

sufficient under

conditions

with

the

New

LOS ANGELES, Calif.—Edward
Henderson
has
become con¬

nected with A. C. Karr &

Co., 523

West Sixth Street.

rest

With Lester, Ryons
(Special to The Financial Chronicle)

LOS
ANGELES,' Calif. — F.
Dwight Leslie has become affili¬
ated
623

with
South

Lester,

Ryons

of the New York and Los

Stock

Exchanges.

formerly

Co.,

Hope Street/ members

with

Angeles

Mr. Leslie

Kerr

Bell

was

and

Edgerton, Wykoff & Co.

into mortgages and longbonds of various types with

better

payment

returns

rather

allowing

the
satisfactory

dividends

Insurance companies need
less

the

protects

individual

dividend

withdrawals in limi_

excess

tation

demand

the

(Spe;ial to The Financial Chronicle)

been

member

Stock Exchange.

A. C. Karr Adds

with¬

used seldom—the last time in 1914
—and

prior to his retirement,
partner in H. Hentz & Co.

and

Savings banks, apparently banks
demand, actually are not. (Both

premium payments.

On Mitchum, Tully
(Special

to The

Financial

LOS ANGELES,
even

liquid positions than Savings

wi" a°f the'rlT^irciub, S bankij because of their continuous
York

last

that

no
.

security is pledged, the nomencla-

the

and

the

over

ing of the two factors. Some

turities

shorter

months would indicate
omists

over

Bond mentioned be-

high of 109V2 sells today
at about 95%.
The relative stability of govern-

risk js practically always in a betfer interest return on longer ma-

normal

Corporations in
certain

With F

present time.

ment

The lure to the buyer to pur-

As to

(Special

of this policy brought a
quick break in prices with a gradual lowering of them up to the

96.

feature

.SSS3»

Joins

ment

fore at

chase

in-

governmental

financing
costs, tried to support the market
against the trend. The abandon-

the 1-year bond you
purchased would decline 99%, the
5-year to 98% and the 10-year to

phases:

investor.

and had been active

DENVER,

1Vz%—

too

about

19,769,062

With Inv. Service

Morelock

moved

932,193,831

invests

increased

1/4%,

creased

prices

concerned

22,569,150

sons.

(Special

bond

only

and

976,596.324

Association

two

then prevailing rate for such type

low,

Now

phia. He is survived by
and

If the

publ^ opin'on

unfavorable

government

come an investor.

affairs

the

maturing in

banks, pension funds, colleges, in-

comment

A
A

Traders

choice to buy

100

fuJ

funds

selves; (2) A little about who buys
them; (3) Why prices move up
and down; (4) How to.become an

Smith, Ark. reports the following
as

The City National Bank of Fort
officers

you

for 25 years,

■

new

to the difference between a bond-

dend of $150,000.
*

try

the simple nature of this business.
will

had
at

bond

today, the interest pattern

I'll

let

should expect

illustration.

21/4%

of building reover-supply of investto
an
undersupply.

the

versed

Prices started downward up until
March 1951 Treasurv DOlicv fear—

The second may need some
clarification and can be
shown

1 year, 5 years or 20
years.

and

anenor-

the

less interest from the better

Assume you

cornorate

ment

credit.

best by

deferred

expansion

mous;

are

The first is simple
you

lone

increasing de¬
loans, issuance

municipal securities and

463,042,880

CHICAGO Jll.—Charles
Commercial National Bank

of Kansas

and

war,

619,409,150

*!*

The

English

then,

changes

market.

the

518.873.025

Blaustein

age

Bank of

Fort Wayne, Ind., from
to

talk

tonight,

with
Newburger & Co. of Philadelphia

lin is

the Fort Wayne National

en-

maturities

After

mands for business

647,953,042

tal of

j|:

civil

from

standings of
(2) risk of capital

enough-surely
to get

results

credit

lengthened,

1946 for

of increasing investment

bonds?
Commercial banks,
insurance companies, savings

A..-.Barry has become af¬
filiated witluGrimm & Company.

reports

plumber,

The

return:

time

different

money

low of about 100 in 1939 due to

pressure

buys

William

National

The

interest

given

any

(l)

109Vz

(1) Something about bonds them¬

:j:

clerk

gineer.

turn.

from

ar¬

talking

man

duration al¬

U. S. Government 2X/2S due September, 1972. They had risen from

2,392,026,198

Samuel
at

$500,000 by
dividend of $100,000.

stock

think¬

Although I shall confine myself

capi¬
of $600,000 having increased it
now

were

the

different interest patterns on bonds
of different types and maturities
at

cent years was

Samuel Blaustein

444

Central

Md.

find

medium-

15 years; long-

2,734,097,053

Profit

sists of 30,000 shares

perma-

downward

of long

movement is

2,518,533,410

secur._

Advances

rose to $10,823,000 in 1945,
and to $20,519,000 at Dec. 31, 1952.
The bank's present capital con¬

woke

is the fact.

reverse

upward

2.858,047,298

000,

having a $10
par value, or a total of $300,000.
Surplus is $850,000 and undivided
profits is $240,000.

Simple English

Government and
other

talking

was

until

nents

For

Cash and due

the

change in the bank's Articles of
Incorporation.
It is intended to
issue rights to present sharehold¬
ers, permitting them to purchase
one new

resources.

Deposits
from

the

word

proposed

effectuate

Total

probably
facts were

a couple of "Who-DoneIts" and last week's "Times" cross¬

CORPORATION,

SWITZERLAND

Reading, Pa. has unanimously ap¬

proved

ever-

brief-

those

monies

funds.

known,

tate

Each

tions.

depreciations

branches.

SWISS

the

present

for

demand

When

when the

There are, of
variations
within
these
in
individual
classifica-

borrowers and

makes

supply and

seeking in¬
vestment exceed the demand, dol¬
lar prices move up, and vice versa

thereafter.

and

case,

❖

The Board

Holton

payment;

years to

The

profession
sterious

appointed

when he resigned.

serve

lawyer

with

Kelley, Q.

Germantown bank in July, 1941. Ltd.; La Compagnie Legare Limitee; Lelan Electric Canada, Ltd.,
He joined the
institution as a
and other Canadian Companies. J.
Vice-President
and
Director
on
Page R. Wadsworth has been ap¬
Jan.
15,
1940, after serving 22
years

un-

for

prnkies.

of Feb¬

term,

things

toes

Man¬

his

<ff

been

simple

- ••

Assistant Auditor.

•

retirement

Assistant General

effective

ager

who retired under the bank's pen¬
sion
plan.
James Finacey, Jr.,
named

time

names

Nova Scotia, Head

Tojtmto, Ont., Can.,

nounces

Crawford

Pa; to succeed William F. Watters,

was

spent

pronounceable

Office,

term, five

ranges

le armng

It is learned from the Philadel¬

phia

before

years

course,

some

17.

doctors

have

$1,000,000 to $1,250,000,
enlarged amount having be¬

come

though the direction may be temture of debenture bonds is applied.-porarily reversed by government
As to maturity: Bonds are clas- fiscal operations. The high of the
sified as short-terms up to five government bond market in re-

positive

that

the

bank from

the

appear

the layman.

by the "First National Bank

raising i)f the

mysterious

new

San Jose^alif. has resulted in

and down, and how to become

the

funds.

East New York Savings Bank

move up

law

supply of available investment

funds

Differentiates between bondholder and stockholder.

Gal¬

Feb.

Office

buyer, why prices

the

Investing

the

Mr. Holton cites four components of
bond; and describes the

was

simple

demand—the relationship between

By RICHARD HOLTON*

Vice-President,

Texas

March

Moody

"Bulletin"

the

City National

G^veston,

changed

stock.

new

the

Stock

$700,000,

$500,000,

name

The

Port

market

causes

movements?

the

became

from

$200,000 of

The

Third—What

Elements of Bond and

National

increased

Kawiak,

Assistant Secretary. C. S. Powers
is
President,
Sheldon
E.
Falk

Johnson,

Bauer,

Assistant

Harriet

Vice-President

Feb.

State Banking

the

Arthur,

certificate whereby

Cashiers.

the

688, at which time also it was
Syracuse Trust Co.

page

and

Comp¬
Currency.
An¬

the '

nouncement

Cen¬

to the

Callery,

Jr.

Tully

Co.,

Street.

Staff

Chronicle)

Calif.—John B.
with

650

Mitchum,

South

Spring

This Week

National City
Guaranty Trust
Bankers

Bank Stocks

-—

Trust

York
in

dynamic factors

of the most

one

banks

and

Hanover

__—

Bank

earnings during this period.
Outstanding bank loans reached a record peak at

the end of

75% in the 2xk

over

years

_^_

690,746

—

Manhattan-

582,867

Trust-—

New

York

Morgari

National

Corn

Exchange

New

necessitated

tories

_—

inven¬
the increased volume of business. Also,

expenditure

capital

resources

have

programs

put

this record

bank loans

because

and

such

are

what

prospect is for loans over the coming year for New

the

clear that unless there is

seems

drastic defla¬

Total

tion, the loan total in 1953 will average higher than in 1952.
loans

the end of

earlier,

year

1952

that 1953 started at

Accordingly, providing there is
decline this year, prospects are

considerably higher level.

bright for

Business

tion

are

point to

prospects

credit this year.
mates

Capital expenditures, according to current esti¬

Increased deprecia¬

charges including accelerated amortization will help defray

resources

past two

However,

concerns

many

drew down on

cash

last year and will need to borrow to complete programs.

An additional

that

factor is

and present indications

years

Also, there

8.6

151,91-3
54.776
42,207
5,080

forecasts

+ 11.4

+26.9
+34.7
+ 29.5

cedures

are

for

lower general

some

reluctance

in the capital markets this

year.

tion

year or so

from

now

the bond market

letter dated Feb.

issue of the

19, 1953

per

shown

are

$3.48

1951

4.09

1950—

3.97

less than 3.00%

year ago,

tax situation

corporate

borrowing to
than in years

to carry

compared with
be considered desirable to post¬

may

also

into the picture.

enters

payments

in the

due

taxes is expected to be

past.

cause

to be offset

some

With 80%

first half
a

Also, the possibility that

this

year,

important factor
profits taxes

excess

July 1, 1953, gives corporations added incentive

Even

liquidation of loans.

small increase.

The extent of the gain will depend

year

to year,

would expect the total volume to average 5%-10%
higher than
'

■-

This could be favorable to New York bank
operations.

institutions made sizable gains last

year

encouraging for earnings prospects this
some

the best gains in loan
a

means

were

3 of our Annual Report, copy of

our

page

should

circulation

corrected

of your

believe
that the steady growth in

paper,

totals

and

have

prepared

the following

It will be

interesting to

compare

the year progresses.

1951

3.07

per

basic,

A Ten-Year
on

Survey
Request

Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock
Exchange
lt§ BROADWAY, NEW YORK

6, N. Y.
Telephone: BArclay 7-3500
Bell Teletype-—NY 1-1248-49
(D. A. Glbbs, Manager Trading Dept.)
'

Specialists in Bank Stocks

the

Government

Kenya Colony and
Head

Branches

Uganda

Office:

26, Bishopsgate,
London, E. C. 2

India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

Authorised Capital-

Paid-up
Reserve

Capital
Fund

£4,562,500
£2,281,250
._£3,675,000

The Bank .conducts .every description of

banking and exchange business.

Trusteeships and Executorships
also undertaken

Already
and

ways

and

super¬

have

doing

means

printing presses,

are on

metallurgical

proc¬

control

remote

and

measurements

all

and

kinds,

have

hardly,

Eelectronics
The third

the

phase of the business
application of electronics

the

military. In the last

you

and

from

Progressive Industry

gift

Finally,

items.

radios have become

car

necessity.

business

tronics

'apparent

that

became

its commercial
For
all
practical

was

applications.

divide these into

purposes we can

ing to take on important uses of
this form of electronics. The varirailroads, transit companies, high¬

phase of the elec¬

second

turing types of industry are start¬

way

and

construction,
veterinarians
ranchers, and automobile clubs

relatively new poten¬
tial. When we couple together the

represent

ment of

various
be

devices

control

out

worked

third,

the

that

can

elec¬

through

aside

field

understand that the
communication
application of
is

those

from

things that

are

by the telephone and tele¬

that

have

into

started

The

new

only

really

field. For

ex¬

the

good,

aturization, portability and mobil¬

ity,

lower

and better

only 2,600 police radio systems.

station

only

one

and

two

transmitter

radios

their

dustry. Now there

are

entire

in¬

4,000 such

radio
are

power

efficiency. Up to now,

and

also

amateur

important

The

second

mercial

various

industrial

communication

within

parts

phase of the

the

com¬

Microwave

microwave.

munication

for

purposes

are

which

application of electronics

radio system. At

There

radio,

electronics industry.

mitters

receivers.

marine

aeronautic and

systems using some 70,000 trans¬
and

consumption,

haven't mentioned such appli¬

cations

country made use

back

get

com¬

potential

users

microwave

repeater

industry. This application was
practically nonexistent in 1940. At

systems

are

the various pipelines.

present

the present

about .7,000 miles of pipelines that

companies
radio
These

time, there
that

have

communication
now use

are

10,000

their

own

system.

in the order of 70,-

000 mobile transmitters. The util¬

are

the

covered

munication
other,

by
of

When

relay

time,

you

radio

there

microwave
one

are

com¬

form

an¬

look

the

potential opportunity in 280,000
ity companies, oil companies and miles of gas and oil pipelines in
lumber companies t and manufac¬ -this country, there would
appear

arm

think

that

the

govern¬

our

order

modern

depend¬

extent

elec¬

those

consequence, the
industry has assumed
a

where

military

dollars

most

servant

position

weapons,

great

electronics

will

somewhere

two

and

worth

half

year.

fiscal year that

equivalent amount.
be

gear

the

will sell

ahead,

to
the

billion

anticipate

that for ten years
ernment will

seil

electronic

this

think

our gov¬

required to

chase from the electronics

pur¬

indus¬

try and its various forms of

com¬

munications, radar and the appli¬
of

missiles,

electronics

to
guided
billions of dollars

many

worth of electronic gear. The rea¬
son
for it is that there are so
many

rapid strides being made in
design, in missile design

aircraft

and radar and communication de¬

sign,

that
to

seem
we

few

every

render

invented

few

years

obsolete
years

things
before.

So, we anticipate that the military
phase of the electronics business
will

continue
see

can

far ahead

substantial

busi¬

ness.

Television—The Final Phase

high frequency relay
the present time,

greatest

but

continue

weapons.

practical

all

will

they will not
quantities of various

with

tronics

that

protection.

our

equipment and

the

these

thing

philosophy
policy of keeping America

cation

this

dynamics of the industry.

izations of

our

for

engineers are seeking mini¬

Our

uses

for

reasons

ample, in 1945, the police organ¬

base

easy

electronics

communication,

graph industry, it is interesting to

and

open

steady, healthy growth.

the

served

are

opportunity for the replace¬
our product among those
who have become established, it
the

First, communications; second,
microwave, which, in effect, is
and

that

markets

new

three categories.

communication,

will

armed

new

that

necessary

ing
peal

for

such

materials,

ment
and

situation

in large

radar, the

various

government

our

arm

Electronics—An Integrated,

unfortunately, in

are,

international

war

Matnre and

Now,

guided missiles. We think

may

page

radar.

principles to

called
that

Comptroller."

con¬
com¬

dealing in terms of additions

application

"J.E.WILSON,

war,

all fimiliar with the

are

tributions made in terms of

constantly

Continued,

mobile

Bankers

elementary

jobs.

same

"Very truly yours,
.V

1952, there were 7,000 police
systems in operation. The taxicab

of INDIA. LIMITED

electronic

to communications and

2.98 per share

1950

NATIONAL BANK

it
and

us,

ways

equipment

are

$3.48 per share

tronics.

changes from 1951 to 1952 of

gave

applying

munication

being—

1952

companies in 1945 had

Bulletin

the

visory

wide

the

these figures

In fact it is interest¬

year.

the

new

the basis of 800,000 shares now out¬
earnings for 1951 were $3.07 per share. On the same

enclosed, that

"Because

note

comparison

17 N. Y. City
Bank Stocks

from

are

also the institutions which showed

major New York banks.

quarterly totals

in loan totals which

volume.

showing the loan

16 of the

Many

of the banks which made the most favorable

showing in earnings in 1952
As

issuance

the

and

basis, earnings for 1950 were $2.98 per share.

The

in 1952.

table

been

out

Military Applications of
note

year

This, however, is expected

though there is little change in loans from

ing to note that

have

splits,

Commercial Application

falling off in business activity later in the

business activity in the last half of the year.

upon

standing,

by seasonal expansion of credit in the final months

figures

This could

that year-end figures should be close to those of last
year and may

possibly show

above

brains to those muscles which will

esses

dividends,

bank loans which increase the capital base.

Admittedly
could

tax

pay

not(expire

may

which

stock

will

"You

important factor in the demand for bank short-term credit.

The

the

muscle

revolution

means

permanent financing until a more favorable time.

1952

revolution.

possible to conceive

chemical

that high-grade obligations are currently

3.50% return

doing

now,

require

the

took

this. These

"Vice-President and

When it is realized

ques¬

may

all

in addition to the
mechanical fingers which the first

earnings

favorable.

selling in the market at close to
pone

expected to cause a

industrial

work;

34 of your Feb.

'All

devices

machines.
be

effect, the first industrial revolu¬

to tabulation of statistics re

been called

to whether it is advisable to borrow for long term at the

current rate when
more

for

adjusted
shares.

The sharp

increase in interest rates for fixed income securities raises

controlled
of

can

started into this field.

the part of corpora¬

ically
forms

tion

Pittsburgh, Pa., in

that

state

opportunity of applying electron¬

+10.3

this

1952_

"Comments

activities

two hence. There is the

our

business pro¬

office

and

decade

will

what

revolution in

industrial

page

start

the

machines

business

control

the

+ 10.9

follows:

earnings is shown

may

tions to obtain money

;

7.3
2.9

found

earnings have been declining for the

level of profits in 1953.

the

tabulation

that

"In

continuing heavy demand for

expected to equal the total of 1952.

part of the cost.

16,582
26.775
29,252
25,658

of loains.

ume

contained

banks

well-maintained vol¬

49,443

+ 16.8

43,021

'Commercial and Financial Chronicle.'

than the usual seasonal

7.1

+ 15.1

Pittsburgh

First National & Trust Co.,

approximately 10% higher than a

were

9.2

Wilson, Vice-President and Comptroller of the Peoples

"My attention has

all, it

54,523

23, advises us as follows:

York banks.

First of

Peoples First National Bank & Trust €o.,

I
J.

important factor in the operating outlook, the question arises as

193,141
157,971
143,035

ing

second

Correction

out such projects.

and funds have been borrowed to carry

view

212,747
185,242

drain on cash

268,604
224,516

Trust.—'

reflecting the expanded defense activities and the higher

large

309,871

297,856
245,057

York-

336,646

a pell-mell, rapid, ascend¬
growth. Rather, we look for,
a
logical steady, and progressive
type of growth which augurs well
for stability within the industry.
The applications of electronics
in the field of control, the control
of various switching devices, and

expect

+ 13.2

57,999
108,106
99,463

particular phases
we do not

well to note that

two

those

8.8

85,175

588,865
566,285

250,174

______

Bank

715,349
591,283

823,455

631,886

J. P.

heavy in this period

Demands for credit have been exceedingly

_______

First National

gain in total loans
since the outbreak of war in Korea.

together with the large increase of 1951 made a
of

Public

This

earlier.

approximately 10% above the total of a year

1952

Bank

Irving Trust

large part, accounts for the gain

which, in

one

Bank

Chemical

has been
in the operating position of New

expansion of bank loans over the past two years

compete

tively priced products.

Change

+ 16.2%

$349,986
184,436
182,423

$2,511,938 $2,161,952
2,089,776
2,274,212
1,384,002
1,566,425
926,473
1,011,648
816,946
874,945

—

Trust-

Manufacturers

The

——

Change

1051

1052

'\0

JOHNSON

Percentage

■OOO's Omitted-

Chase National

tremendous growth oppor-«

tunity for practical and

of December 31—

-As

Bank and Insurance Stocks

to be

DISCOUNTS

AND

LOANS

March 5, 1953

Financial Chronicle. ..Thursday,

The Commercial and

(1026)

The
We

final

have

phase

receivers is
1953 and

use

had

public.

can

million

Last
sets.

million

of the first of

126 stations de¬

livering programs to
six

television.

twenty

over

the Ameri¬
we sold
year, it is

year,

This

anticipated that somewhere in the
neighborhood of six and a half,
to

seven

million receivers will be

made and sold.

year

there

By the end of the

will

225

250.

Number 5200

Volume 177

stations

ing

The Commercial and Financial Chronicle

...

the air, thereby open¬

much larger market for the

receivers.

television

sale

1960

this

receivers

over

50 million

use.

into

seven

mention the

anticipated

have

people

Many

since the freeze

television sta¬

tions has been taken off that there
is

stations

going

private

this

myth.

We do not anticipate that

there

economic

air.
is a

the

view

will

air

the

five

the industry will find itself

years

600

order

it will

ual process

tional stations

to. take on

have

could

stations

industry
high

which

television

theater

loom

horizon. Subscription

television

theater

would

that,

the

will

give

and

good

interested

the

component manufacturers
basic

the

serve

commodity

will have varying pros¬

up.

Obviously, if

going to

we are

business

from

which

governs

of the technical

tain

standards

receiving

happen in
the

two

company

the

government

economic

value

television,

theater television

and

adequately work out techni¬

cal

and

financial

is *big enough to absorb

omy

these

well,

things

about' its

and

each' business

and

business

and

all

new

good

other phase of the television

Color Television

television.
"When
know

is:
We

have it, we know
compatible system,

will

black

the

and

which

one

it?"

work

along

white

and

side

system

permit current sets to receive
broadcasts

colored

black and white. The
been

least

group

Standards

portant
their

Committee.

laboratories

have

engineering effort in

tempt to

come

pooled
an

at¬

with industry¬

•

this

virtually at the end
work. The
job

research

tually been accomplished. But
still have three basic
overcome.

....

problems to
.

....

iFir?tv is the technical problem
of

providing a good, practical, in¬
expensive color tube. Second, we

cil

produc¬

tion costs and keep the cost-price
should

permit the electronics in¬

dustry

the

sound

decade.

will not be in the

propor¬

used

but

they

1948,

will

1949

good, healthy profits.
Our

industry is

sified."

throughout

make

the

courageous

will

permit

off

have

place

which

to
"or

industry to
think

and

respected

people

sun,

Abroad
foreign
a

Fifth

the

University

pamphlet

Office

The

are

reviewed

just

issued

Department

the

publication is expected to be

of, special

interest

manufacturers

and

The

against

curbs

Discussing
"One

the

Curtain'

that

shields

be excellent

used

are

under construction,
experimental
stage,
or

the

with

faced

are

which

contacts
In this

men.

far

primitive

than

Dark

situation

and

which

the

any

since

known

Ages.

today

barbaric

the

so-

contrast,

Ages represented a pe¬

riod

That

such

enlightenment.

genuine

situation

could pre¬

vail in the mid-twentieth century
seems more

subject

still

being discussed.
Five

the

nightmare than

anything else. But it does prevail,

countries

the

Exceed No. of Phones
television

sets

telephones

than home

use

men

other

the

can,

them."

bathtubs. W. C.
Johnson, Vice-President-sales of
with
their Admiral Corporation disclosed the
respect, we latest TV census showed 1,360,000

minds

under active consideration. In the

three,

counter
in the long
no

The Chicago area now has more

curtain

earth

Chicago's TV Sets

dangerous

free

from,

the

operation,

the

jeopardized.

are

all present,

are

run, oppose

and fantastic features of the 'Iron

nations, television stations

most

are

all

they

Curtain.

Iron

all

absent,

subject Dr. Kirk

this

Dark

the

—

together.

linked

which

freedom

education

and

of these four elements is

stated:

has

little better

any one

forces

delegates

student

behind

called

York

New

be used to combat ideologies

from

world

the

condemn.

indissolubly

to President Eisenhower

warned

may

International

Trade,
Commerce.

Forum

Columbia

President of Columbia Univer¬

Analyzed

Annual

Feb. 21, Dr. Grayson Kirk,

sity,

developments

nations

speech, makes

freedom

Speaking at the closing session
of

City

Developments

Television

which

it, if it prevents honest criticism and examination of ideas

impairment of free thought

off than those

seasoned

industry
give their attention.

Kirk, President of Columbia University, says
a nightmare, but opposition

Grayson

seek

offers

Against Curbs in Fighting Communism

"Iron Curtain" situation is like

strong

industry

American

leadership which

our

the

Dr.

our

there

important place in the

Warns

our

muscle

use

think

and

well diver¬

fat

got

still

which

agility.

now

have

and

dicates that in all but three of the

that nothing good could come of such

mean

still

picture

come.

selected and

fill of this body as

our

by President Truman, but that does not neces¬

the

The

provided also that really able and

organization.

in television in

1950,

conclusion,

in sound

do, results

personnel is selected.

sarily

tions of the bonanza years we en¬

joyed

course,

We have had

over

course

They

profits

good

earn

"thorough rethinking" of what the coun¬

should

and, of

relationships in good order. That

not

anticipate

that

material

basic

any

receivers

viewing

There
in

use

the

Chicago

area.

telephones
according to Illi ¬
Company
Census Bureau lists 1,260,00 <
1,320,000

are

homes here,

nois

Bell

The

Telephone

in use—in

bathtubs—presumably
the

area.

Johnson said that in many
which

have had

five

least

cities

television for

the number cf
sets is now greater than the tota
never
cease
to protest of telephones.
must
As examples he
against it.
cited Los Angeles, Philadelphia
"For the same reasons, a great St. Louis, Cleveland and Boston.
and those of

years

in the free world

-More

than

sold

were

last

million
year,

seb

compared

with 175,000 in 1947, the first full

grams.

The

vision

selective basis material

will

harass

during

serious nature.

been

eight

months. It appears they are

level¬

course

ing' out.

will

the

recent

been

have

increasing
last

the

months there
price
in¬

scattered
end

not

use

commodities

anticipate

of these.

there

The trend

will be toward lower priced prod¬
ucts of all kinds

coming from the

electronics
We

industry.- might touch briefly

Draper, Sears & Co,

new

factor

within

called plated

our

the

Winner

and

formed

Winner

The

Financial

Chronicle)

sion of views honestly held. It is

offices at 218 Water Street to

and

Boston

Stock

Exchanges,

"It

Two With E. E. Mathews
(Special

to The

BOSTON,

have

and

become

Financial

Mass.

Peter

affiliated

Harry

peace

industry

ward

Street.

Mathews

Co.,

belief

our

can

that

ultimate

only be assured in

H. cratic world

men.

can

Only

with Ed¬

and

State the
of

women

burdens

can

and

Myers have
Myers with
con¬

securities business.

Morris Geller Opens
Morris

Geller

conducting

securities business from offices at
175 Fifth

Avenue, New York City.

Alfred Greany Opens

be free, and only

Alfred G. Greany is conducting

men

properly assume

and

democracy.

Gladys

demo¬

world filled with educated

Salvaggio

world of free

Chronicle)

—

duct

freedom.

circuits. Plated cir¬

same

the glory of our civilization that
BOSTON, Mass.—John A. Macit rests upon the conviction that
Gilvrey is now connected with
enlightenment and progress can
Draper, Sears & Co., 53 State
only exist in an atmosphere of
Street, members of the New York

Bigelow

applications of transistors, and

vigilance' must be used

unfailingly to protect full expres¬

that

With

(Special

creases

developing the system has vir¬

costs have

Our

and

vided the

probably

half million of them

1953, but not of

ards. We

future.

have

wide acceptable and simple stand¬
are

lower

Eisenhower

Pres.

with the President—pro¬

agree

products

new

inclined

If
our
beliefs cannot withstand year of commercial
telecasting,
pamphlet, "Foreign Tele¬ the test of honest criticism, if we the Admiral executive
pointed out.
Developments," has been refuse to permit the examination
He said the first set made by bis
shortages in 1953. We do, how¬
published as No. 355 (February of certain ideas and points of view
ever,
anticipate that because of
1953) of the World Trade Series, because we think
company cost 870% more than a
they are dan¬
the. surge to provide additional
Business Information Service, and
current model, using screen size
gerous, then we are little better
sets to new markets, to provide
may be obtained from any field
off than those whom we condemn for comparison.
for the customers who want com¬
office of the Department of Com¬
and oppose. To be sure, we must
mercial
applications
of
elec¬ merce or from the U. S. Depart¬
be
on
guard vigilantly against T
Winner & Myers Open
tronics, to provide contract manu¬ ment of Commerce, Washington
agents of subversion and those
facturers who desire car radios,
LOCK HAVEN, Pa. — F. D.
25, D. C., for 15 cents.
engaged
in special pleading, but

dozen of the most im¬

permit

than

and

lower

replacement and for
set usage. By 1960 we antic¬

shortage

working

vision

get

years

that

industry has

diligently under
the auspices" of the National Tele¬

and

give

much

are

report, which is a resume
of developments through 1952, in¬

requirement

and

will

color

question

have

will

it. will

basic

The

will

•

all interested

„T

Western Hemisphere — Canada,
Brazil, Cuba, Dominican Repub¬
business
will
be
an
important lic, and Mexico—employ the same
standard (525 lines, 30 frames) as
business by that time.
university must
always be
on
the United States, which will per¬
guard against efforts in the free
Materials Shortages Not Serious
mit
a
direct
exchange of pro¬ world to limit freedom of thought.

business.

are

will

need

President Eisenhower.

long range prospect for
profits in the electronics industry
is good.
Technological improve¬
ment

indicate

statutory

off.

The

ipate the need for fourteen mil¬
lion
because
the
replacement

sion a threat of any proportion to

You

down

back

It may

own.

last year for

in~ subscription or theater televi¬

into its

never

the

equip¬

electronic^

comes

seven

big business. We do not see

any

particularly if the

year,

Excess Profits Tax goes

should

change, I shall
promptly recommend those
changes to the Congress."—

25% to 50% in sales. Their
profits should be as good or better

than last

1952, and it will peak up

tube business should

go* on

replacement

for

in 1952; 250,000,000 re¬
tubes were needed for

foreseeable

170,000,000

against the 95,000,000

250,000,000

digest ;them

and

tubes

use

level

the

problems,

study
for

fellow

will

television

industry, the electronics
industry and the American econ¬

anticipate

„equipment manufacturers, and the
larger than this in the course of music recording and film' indus¬
the next few years until the tran¬ tries.
sistor

interests

can

year

which

ment in

industry

the

manufac¬

to television
broadcasters,

prime

that if the

say

in- pay-as-you-go

if:the

ceiving

of either of
our indus¬

case

and

there

feel

required

categories of

It is safe to

try.,

not

are

what- will

predict

will

anticipate there

requirement

purposes

our

privileged

1960

cer¬

industry.

our

form

successor

equipment

Communications

Federal

Commission,

say

from

end

manufacturing stand¬
deal of study and a good deal of
point, our component manufac¬
time put on these' two problems
turers and suppliers will do gen¬
in
the
course
of
the
next
24
erally as well, even to and includ¬
months by the industry, and by
ing the receiving tube business.
the

us a

this

bones

pects in the next 10 years, mostly

your

will

facturers

and

back

anticipate that component manu¬

service

that

seen

There

theaters.

will

manufacturers in the industry. We

television is

television

pay-as-you-go

deserve

knowing the varied opportunities
for

dare

that the average companies in our

sometime next year that

FCC

You

and

they

feel

until

who

television

give

with

chal¬

Subscription

years of
was taken

attention to the color problem.

acceptable product to the

American public.

many

their
day in court. Thus it may not

the

lenge, and we have been able to
give

interested

studying the allocations of fre¬

this

accepted

equally

Commission's time

full

the air. The

television

theater

because

course,

fre¬

given

been

has

industry

utra

subscription

quencies for current type TV sta¬
tions and color TV. Now they, of

chal¬

technical

band

wave

new

months

recent

television

quency.

beyond that.
in

of this year.
don't anticipate that

are

priority
the

new

the

form

the

grad¬

few hundred addi¬

had

have

lenge

and

fin
having their causes heard out be¬
fore tnis tribunal would give us

for the American pub¬

lic to absorb-

slow

will

FCC

part

proponents

who

and

stations

700

the

that

television

being served by somewhere in the
then

manu¬

of having
system, we

our

approve

latter

the

those

this

Over

the government

problem

However, we

six

will

willing to hear our cause, maybe

public. We think sometime in the
course

the

anticipate
by

course

business will enjoy an increase of

FCC

the

American

the

serve

into

.can

With regard to

2,000 television stations going on
the

they

the

years,

wire

ture of electronics

tubes

adequately developed

problem,

worth

these

years,

and

few

hand

majority of the industry will

convert

facture.

neighborhood of 2,000 tele¬

vision

three

where

opportunity for somewhere

in the

the

than

(Council of Eco¬

agency

tions. If the conclusions of this

the

two

nomic Advisers) for

uct, lower cost and higher volume.

forms

color tubes are.emerging from

Various

veri¬

mind it is essential that the President

be able to look to such

ex¬

circuits

map

rather

answered.

basic

plate

can

"Rethinking"

circuits, which
more reliable prod¬

road

bakelite

circuits

when

"To

the

heard

the

problem, it is

predict

But Let's Have the

Labora¬

long-range
thinking and planning in this
vital field. My intention is to
reinvigorate that body and aug¬
ment its
influence by means
of some new personnel and a
thorough rethinking of its func¬

table

financing

With regard to

laboratories, and it is safe to in¬
dicate that sometime
in maybe

which will develop.

tions

planation.

our

home forma¬

new

have

You

little

Bell

lower cost,

the

it will

difficult

minimum of five or
million sets each year, not
a

manufacture

tories, the transistor.

the broad¬

cost

programs.

the technical

industry to run

allow the

should

colored

that

market

increased

the

easily translate this

can

velopment

and

ways

allow

product at

coupled with the remarkable de¬

the sponsor to take on

caster and

find

must

of encouraging

means

television sets

replacement

steadily at
to

that

and

will

better

approval
sometime
early next year, and

year

finally

mil ion homes that will have tele¬

vision

system

government

will be

expect there

the

cuits

governmental approval
we will offer for

must gain

(1027)

securities

business from offices

responsibilities at 128 East 72nd Street, New York

Peace, democracy,

City.

The Commercial and Financial Chronicle...

<1028)

Continued jrom page

last year. Among small

there

The State of Tiade and
strength will bear watching, and

Indnsby
is continuing

(3) Another sign of current market strength
for foreign steel.
Although imports are

far from the

demand

been caught with
nibble at foreign
outside their regular supply channels.

post-Korean high, and some importers have
shipments, consumers continue to

tiard-to-sell
tonnage

steel's biggest customer, is applying by far
keep the market tight. Despite their strong

The auto industry,

the most pressure to

shows automakers

reached.

auto plants
steel from
at nearly twice the cost

high production has had its price.
Some
been forced to obtain as much as half their

This

have

expensive conversion or foreign sources,

steel, concludes "The Iron Age."

of mill

will go when they are decontrolled, says "Steel," the
weekly magazine of metalworking.
Some adjustments on prod¬
ucts considered out of line are anticipated, but no across-theprices

revision, either up or down, seems likely despite bright

board

coming months.
Increasing competition
supply comes into closer balance with
demand and this is expected to keep prices under control.
demand prospects

over

for orders is indicated as
r

Steel

also

men

are

closely

developed
than

two

observing

developments

the

Last week copper and related prices

nonferrous metal markets.

Scrap copper control was lifted more
prices advanced sharply.
However,
was sluggish with primary copper prices

bullish flurry.

weeks

and

ago

movement to consumers

the

corresponding date

total of the price per pound of
31 foods in general use and its chief function is to show the general
trend of food prices at the wholesale level.
the

Expectations are the government allocation system for steel
other critical materials will be abandoned June 30 except
requirements for military, atomic energy and defense pro¬

Control over distribution of steel,'.
copper, aluminum and other materials for civilian-type industry
appears doomed.
It does not necessarily follow, however, that
such materials will be easier to get since supply conditions will
continue to hinge upon the demand factor with the consumer
fending for himself without government dictation as to who gets
"what, and how much, concludes "Steel."
jects will be assured priority.

Iron and

Steel

Institute

announced

that

The daily wholesale commodity price index, compiled by Dun
Bradstreet, Inc., extended the upward movement of the preced¬
ing week to close at 279.53 on Feb. 24. This compared with 278.16
a week earlier, and with 303.13 on the like date a year ago.

Principal grain markets strengthened the past week, con¬
tinuing the rising trend of the closing days of the previous week.
Firmness in wheat

influenced

was

Strength in

an average of 99.5% of
capacity for the week beginning March 2, 1953, equivalent to
2,244,000 tons of ingots and steel for castings. In the week starting

Feb. 23, actual production was 2,240,000 tons and the rate 99.4%.
For the like week a month ago the rate was 97.7% and production

output

was

dust

severe

substantial volume of sales

reflected smaller cash grain receipts and the

corn

the

smaller actual

its sales of

Car

Loadings Lifted to Higher Level in Latest Week

Loadings of
totaled 689,553

freight for the week ended Feb. 21, 1953,
according t'6 the Association of American

revenue

cars,

Railroads, representing

increase of 7,803

cars

1.1% above

the preceding week.
The week's total represented an increase of 6,002 cars, or 0.9%
above the corresponding week a year ago, and a decrease of

45,292

ears, or

6.2% below the corresponding week in 1951.

United

States

were

of Agriculture

retary

that

this year in an effort to
next year. Other bullish

farmers

The

principal

reduce

their

cotton

acreage

ward off low prices and acreage curbs
influences included short covering and

moderate volume of price-fixing for both

bearish

and

2,105 trucks this week, against 7,945 cars and 1,886 trucks last
week and 4,327 cars and 2,710 trucks in the
comparable 1952 week.

factor

the

was

lower-than-expected

Domestic consumption for the five-week January period, as
reported by the Bureau of the Census, was 894,000 bales, as against
923,000 bales in the comparable period last year. The daily average
consumption rate for January was 36,500 bales, comparing with
36,700 per day in December, and 37,700 in January a year ago.
Stocks

of cotton

mills

bales, the largest in

than 18 months.

loan stock in the week

Jan.

ended

Feb.

were

reported at 1,733,000
Entries into the CCC

dropped sharply to 53,200

bales, from 93,300 in the preceding week, and 142,100 two weeks
earlier.

Trade Volume Shows Little
The
many

celebration

cities

total

The

Week Ago

dollar

trade-

volume

high for

new

than

ended Feb.

26, or two more than in the preceding week, Dun &
Bradstreet, Inc., reports. While casualties were higher than in the
comparable weeks of 1952 and 1951 when 163 and 170 occurred
prewar level

cf 254 in the similar week of 1939.

Failures involving liabilities, of $5,000 or more
dipped to 141
a week ago, but exceeded the 130 of this size
occurring

Jrom 147

the

retail
of

trade

the

was

year

estimated

despite

Mr.

While
week
few

weeks

lagging

Atherton

mer,

to.,

Boston,
of

members

the New York

Stock

Ex¬

change,

Creamer

the

Boston

Securities

ciation

and

with

Win.

presi¬

the

has

Asso¬

Traders

been

identified

investment business for

35 years.

James E.

demand

television

sets, large furniture
popular were phonograph

Paisley

Paisley, who had been*

with

Gottron,
Russell &
Co.,.
Cleveland,
since
August,
1951,.
passed away from a heart attack,
on

February 22. He had been asso¬
with Otis & Co. for eight

ciated
years,
years

and prior to that spent 15*
with Paine, Webber, Jack¬

son

Curtis.

R. J. Henderson .Now

With F. I. du Pont & Co.
(Special to The Financial -Chronicle)

LOS

household

ago.

James E.

were
large appliances,
pieces, and floor cover¬
ings; quite
equipment and records,
decorating materials, freezers and incidental furniture.

console

Schir-

goods were sold than in the similar
year before, shoppers' interest was much less avid than a
more

•'

Creamer,

a s s o c

before.

year

Presi¬

with
&

Clement

Stone,
dent.,

The most pronounced current rises were in the

an¬

nounced

purchasing of women's clothing, particularly suits and sportswear.
The demand for men's
clothing remained modestly above the
limited level of

Directors of the

Co.

Massachu¬

lagging

advent of Easter.

Board

Insurance

over

this time

Bosworth & Co., In¬

Hearthstone

cities in the East.

some

that

dent

evoked

variation in total retail

reaching

Washington's Birthday closed stores in
attractive promotions in others in the
Wednesday of last week, so that there was little

but

period ended

Change from

ANGELES, Calif.—Robert
has

Henderson

ated

become

with Francis

affili¬

du Pont &

Co., 722 South Spring Street. Mr.
Henderson was previously with.
Daniel Reeves & Co. and prior
thereto was an officer of Edward
J. Bourbeau & Co.

close to that of the prior week.

The total dollar volume of wholesale trade remained

With Brush, Slocumb

slightly

larger than that of a year earlier as it has for several months.
Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index, for the week ended Feb. 21,*

1953, increased 2% from the level of the preceding week. In the
previous week an increase of 3% was reported from that of the
similar week of 1952.

For the four weeks ended Feb. 21, 1953, an
reported. For the period Jan. 1 to Feb. 21,1953,
department store sales registered an increase of 2% above 1952.

increase of 3%

(Special to The Financial

SAN

— By¬
is now with
Brush, Slocumb & Co., Inc. 1
Montgomery Street, members of

ron

the

shopping
holiday.

San

Leydecker

Francisco

Stock

days

resulting

from

the

Washington's

Birthday,

According to the Federal Reserve Board's index department
City for the weekly period ended Feb. 21,*
1953, increased 8% from the like period of last year. In the pre¬
ceding week a decrease of 10% was reported from that of the
similar week of 1952, while for the four weeks ended Feb. 21, 1953,

decrease of 3% was recorded. For the
period Jan. 1 to Feb. 21,
.1953, volume declined 4% under that of 1952.

With Mutual Fund Assoc*
(Special to The Financial Chronicle)

Calif.—Ana

SAN FRANCISCO,
L.

Abel

Mutual

has

joined the staff of
Associates,
12T

Fund

Montgomery Street.
was
formerly with

Miss Abel
Consolidated

Investments Inc.

With Waddell & Reed

*1® *sinij year ago comparisons for this week allowance should be
made for
that stores were closed in some cities on

the fact

week

last

year

Ex¬

change.

Retail trade in New York last week declined about 10% from
the 1952 week. A factor in the decline was the reduced number
of

Chronicle)

FRANCISCO, Calif.

was

store sales in Ne wYork

178 in the week

respectively, they remained considerably below the

formerly assist¬
the New York of¬

was

Wm, Creamer Director

former

Business Failures Hold Steady
industrial failures totaled

Mr. Horton

ant manager of

setts, it is.

official consumption report for January.

the past w^ek continued

Passenger car production in the United States last week rose
8%, increasing the prospect for a record first half production of
about 3,200,000 cars, states "Ward's Automotive Reports."
It aggregated 126,671 cars compared with
125,540 cars (re¬
used) in the previous week. This was still 46.5% more than the
86,450 cars turned out in the year ago week.
Total output for the past week was made
up of 126,671 cars
and 28,024 trucks built in the United States, against
125,540 cars
and 26,489 trucks the previous week and
86,450 cars and 24,910

Commercial and

nicipal Bond Department.

Trading activity in most of the nation's wholesale markets in

Output Last Week Rose to
Highest Point Since Early March, 1951

will build 8,103 cars

as¬

BOSTON, Mass.—At the annual!
stockholders' meeting, William E~
Creamer of Medford, was elected

Auto

trucks in the comparable 1952 week.
Canadian factories, "Ward's" said;

now

mostly steady last week with a slight
upward trend toward the latter part of the period. Late strength
was influenced to some degree by the recommendation of the Sec¬
Spot cotton prices

Shoppers' interest in Spring apparel spread from the Southern
regions to many other parts of the nation last week. Apparel
stores chalked up larger sales receipts than in the comparable
week last year as many shoppers began to
prepare for the earlier

was

announce

corporated.

126,426,000 kwh. below that of the pre¬
ceding week when output totaled 8,196,186,000 kwh. It was 653,794,000 kwh., or 8.8% above the total output for the week ended
March 1, 1952, and 1,247,662,000 kwh. in excess of the output
reported for the corresponding period two years ago.

The current total

Exchange,

with the firm in its Mu¬

fice of Braun,

year ago.
Regional estimates varied from the
corresponding 1952 levels by the following percentages: New
England -f0 to +4; East —2 to +2; South and Northwest -f2 to
-f6; Southwest +3 to +7; Midwest and Pacific Coast -f 1 to -j-5.

stitute.
V*

Stock

that Charles C. Horton is

Trading in grain futures on the Chicago Board of
Trade was quite active, but purchases failed to reach the heavy
volume of preceding week.

distributed by the electric light
week ended Feb. 28, 1953, was esti¬
according to the Edison Electric In¬

The amount of electric energy
and power industry for the
mated at 8,069,760,000 kwh.,

Wertheim & Co., 120 Broadway,.
York City, members New

York

from Canada.

total dollar volume of retail trade in the week was
estimated by Dun & Bradstreet, Inc., to be from 1 to 5% higher

Off in Latest Week

Horton

New

off-grade

The

Electric Output Tapers

Oats and rye prices rose in late dealings, but both the these
markets were overshadowed by the possibility of further imports

sales in

2,117,000 tons, or 101.9%.

would curtail

CCC

corn.

operating rate of steel companies having 93% of the steelmaking

A year ago when the capacity

by reports of

Charles

sociated

announcement that

the

capacity for the entire industry will be at

2,202,000 tons.

Extends Slightly

hedge switching, and

The American

Index

Its Rise of the Previous Week

domestic and export account.

that

sum

Price

Commodity

still controlled. Last

and

drop of 5.6%.

a year ago, or a

The index represents

trols

week, however, the government removed con¬
primary copper prices and the market immediately went
up three to four cents per pound. Whether still further advances
impend is uncertain with the market in an unsettled position,
declares this trade journal.

„

price index, compiled by Dun & Brad-

for export.

markets as yet to indicate how steel

There is nothing in the

Wertheim & Co.

Slightly for Third Week

street, Inc., showed a further slight rise last week to $6.21 on Feb.
24, from $6.20 a week earlier. This was the third consecutive
weekly gain and marked an increase of 1.3% over the 1953 low
of $6.13 on Feb. 3.
The current index compares with $6.58 on

storms in the Winter wheat belt and

Continues Near Record Level

Steel Output

wholesale food

The

Wholesale

Authority quotas limiting first
1,250,000 cars, they scheduled output at
Gamble was that production limits would

end before quotas were

Wholesale Food Price Index Rises

took a gamble that paid off.

spite of National Production

quarter production to
more than 1.5 million.

Charles Morion With

augmenting

buying position, automotive purchasing agents are
regular mill tonnage from all the above sources.

Hindsight

casualties, those with liabilities under $5,000,
to 37 from 29 in the previous week and

increase

from their 1952 total of 33.

disappearance of premium prices

early sign of falling demand.

will be interpreted as an

was

Thursday, March 5, 1953

observance

Washington's

Friday of the corresponding
birthday.

(Special to. The Financial

ALTON, 111.
Schwaab

—

is now

tChbonicle)

Richard W*
connected with

Waddell & Reed, Inc.

Volume 177

Number 5200

The Commercial and Financial Chronicle

...

(1029)

Continued from first
page

ficiently interested" in the sort of progressive changes
are essential to efficient
production in this day and
age. Not "large sections" but virtually each and every

which

'As

We It
See

ent tariff

fers the

man,

arrangements provide them, the Committee of¬

following defense of its findings:

than

consequently

increased employment in our
export industries and
stable incomes for American farmers.
industrial

to tariff duties

adjustment to

now

supply

small fraction of

very

total domestic
consumption of manufactured goods
than one-half of 1%. With

rising national income,

ual increase in

imports can be absorbed with
little disturbance to domestic industries.',

—

"The

less

prefer

had

that

Committee and its

must confess to

believe

have

hard

time

Three-Dimensional

from

Control

sion

the

midwest installation of the Atomic

Energy Commission, through the
industrial cooperation of Allen B.
Du
Mont
Laboratories, Inc., is

proving to be important. Atomic
energy
installations naturally
work

with

materials

such

re¬

precise laboratory work. The abil¬
ity of the operator to see in three
dimensions in such precision work

gives him

much greater degree

of accuracy.

To the general

today

public, television
sports, dramas, vari¬

means

ety shows, news programs and the
like. To the television scientistshave

of the

much

There is little reason to believe he could not about
well have described the attitude of the
public at large
in the same or similar terms.

audience
that
nite
It

and, when

advantages.
license to install

Establishes Office
John

Broderick

Important

Industry

Role

operations by management
through TV is one part of the job.
Actual manufacturing operations

plant

and

offices

New

York

City. Former¬
the

example, the color of the

prosals. There

Street

ing, such

being forced to trans¬

terial in the furnace is sometimes

definite

important. TV lets the men work¬
ing at the furnace get a much
closer look at what they are doing
than would otherwise be possible

often overlooked

are

others when it

there

are

seems

not

still others where it

understood; there

border
does

are

quite go to the

should be allied with weak, Laodicean

fuse either to

which

change their

they, far

than

peoples who re¬
or to face dangers by
exposed.

ways

we, are

More in It Than
It

there is

evident

that

the

industry than

a mere

foreign markets. This much is clear

when it remarks that:

-<<

frequently since World War I, large sections of

British management and British labor have not
been suf¬

ficiently interested in technical advance, in increasing
labor productivity and in
lowering costs to permit British
industry as a whole to ' keep pace with more vigorous
foreign competitors.
"There has

frequently been

tendency to prefer ac¬
cepted methods and traditional ways to continuous
growth
and improvement. '
a

and

competitive

British

pressures

industry also needs

markets which

are

and

access

secure

increased incentives

changes in attitudes.
to

television

expanding foreign

than at present from the

The

summon

habit

that

these basic

faith than

can

changes in British attitudes

would

change with the adoption of the proposals
that the Committee now
brings forward. These failings of
British industry seem to us to be much
more prevalent
and much more
deep-seated than the Committee apparently

lieves them to be. It is not
only that "large sections of
British management and British labor
have not been suf¬

great

examples

broadcasts

fine

because

different

will

medical

color

op¬

important

parts

the

of dif¬

on are

ferent colors and medical students
other

and

observers

being able to
color

true

benefit
by
these organs in

see

they

when

actually

healthy,

are,

diseased

convenient

medical

knowledge.

dents,- at

time,

one

operations

they

means

had

close-up.

imparting
Many
stu¬
can
watch
Previously,

from

watch

theatres, and the view
obstructed
nurses

the

who

had

operating

often

crowd

around

perform

Television

duties.

possible for lectures in
nearby rooms to point out im¬
portant surgical procedures, etc.,
appearing on the TV screen with¬
bothering the operating

sur¬

study of bacteriology and

sciences such

microscopes

chemistry,

play

big

role, TV is important. Through TV
receivers

hundreds

watch

can

single microscope slide at
Because colored dyes
color. factors
tance

color

that

industrial
11; „;'

vantage.

are

such

one

TV
i

time.

and similar
vital

studies,

can

impor¬

the

fine

provided

again

('it

big ad-

a
1

' t

■

for

which

are

reasons

lack

investigation
difficult to
depth,

pres¬

etc., TV can
be important. It gives the invest¬
igator a third eye for going into
such
places as volcano craters,
crevices in ocean bottoms, mine
shafts, etc.
The problem of protecting in¬
dustrial installations, banks and
similar places can be greatly sim¬
plified through television. Cam¬
eras
in strategic places can relay
their pictures to central viewing
points so that many parts of a
plant
be guarded at the same
sure,

the

field

merchandising,

television

industrial

editor of

"Wall

Journal,"
the

has

years

been

engaged

advertising

and

public

relations.

also

im¬

member

dent

the

Writers
ick

stores

outside

windows

much larger

than

customers

Broderick
-

Financial

York

New

Association, Mr. Broder¬
has

also

President

been

the

New York

ter

of Sigma

professional chap¬

Delta Chi, journal¬

istic

fraternity; President of the
Dow-Jones
Employees
Associa-r
tion; President of the Forty-Four
Club, alumni group of the "Wall
Street

Journal"; President of the
Alumni

Minnesota

Association of

New

York, and President of the

New

York

tions

Chapter, Public Rela¬

Society

in strategic parts

used

John

and

Presi¬

former

easily

to attract

charter

Broderick

for

nine

past

portant. Fashion show, demonstra¬
tions of products and the like can

Mr.

Broderick

space,

time.

During
the

of America.

World

Victory

Second

War

Mr.

II,

Publicity Director

was

Committee,

Fund

Federal

District.

Reserve

segment

would

other¬

F. H. Breen

wise be possible.
The

uses

television

the

military field are tremendous but,
naturally, many of them are un¬
der security regulations.
It would probably stagger the
imagination of the average citizen

they (the military officers deal¬
ing in electronics) could lift the
security curtain and reveal the
many advanced uses to which they
and

Breen, of F. H. Breen
Co., Los Angeles, passed away ;,
suddenly February 15.

Sutro Adds
(Special

are

In the

exploration

reach

and

surgeons

table

routine

amphi¬

was

intense heat.

the

places

ability to
telecast
such
operations is also important as a

out

injured.

The

where

yet the

because
In

frequently

erations,

other

Committee apparently has rather

following

The

conditions of British economic health."
an overstatement of the case,

show why:

geons.

hardly

well

importance.

extraordinary risks of sudden changes in economic policy
on the
part of foreign governments. These are two basic
This is

images

makes

being able to send

color

ability to send very fine,
high definition color and blackand-white pictures via industrial

their

"Increased initiative depends

advan¬

The

either

with

restrictions.

technical

body being operated

Committee understands that

the matter with British

lack of welcome in

"Too

That

channel

better black-and-white.

are

tempted to inquire whether we should
be worse off
standing on our own feet against a ruthless
and aggressive foe across the Atlantic
(or the Arctic) than

other

are

better

things. To the horrible picture it presents of us
standing alone in the world against ruthless aggression,
sometimes

band-width

such

tages

heart of

from

There

the naive; and

not

mit

definite

relations

consultant, with

another part. In blast furnaces,

forcefully brings to the
country and of the world certain truths

an¬
own

Broadway,

for

public

advertising

are

ma¬

has

nounced establishment of his

operate. It is not limited by many
factors affecting public telecast¬

times when it

much big¬

John P. Broderick

industry, TV also has an im¬
within portant role to fill. Supervision of

used

limitation, has certain defi¬
needs

view

role in the future.

We must confess that we find ourselves in
a sort of
divided state of mind about this document and
its pro-

which

broader

industry, the industrial side

organization

are

delicate that they pick up and
pour
small flasks and do otherso

who

were

danger¬

are behind protectives barriers, through the use
of mechanical hands. The hands

ger

"private" form of
specific selected

are

attached to devices which

Industiy and Science
essentially

which

dangerously
radioactive.
Scien¬
tists, working at safe distances,

are

page

represented within
is

Laboratory,

of television is of equal or
greater

"The whole question
probably presents a subject with
extending down within the Administration

telecasting for

Divi-^

Engineering

Argonne

watch and work with

Television Use in

the Cabinet itself."

Television.

Stereo,
or
three-dimensional
television, developed by the Re¬
mote

import, and will play
Continued,

Mont

objects whiah

surviving if that protection

differences

attention of the

the

ous

moved forthwith.

complete trade it certainly would interfere with
We can't import low prices from

are

color television system.

can

ultimate goal is most
though at the same time that nothing
is to be gained
by blinking the fact that we have built up
large industries here at home which, thanks to all the
costly artificialities we ourselves have introduced in years
past, particularly during the past decade or two, would
some

supersonic wind tun¬

means

say

prepared to go further and assert

are

that

logical) sympathy
reasoning. We should much
we

desirable. We think

approval in Congress.

are

country to prevent its citizens
enjoying the benefits of efficiency and vigor in

from

program as a whole would meet

Congress. Both points of view

old, old story, and
old, old type of opposition in many
are

world without bitter international rivalries and

foreign industry. We

domestic economy.
abroad.

and

required

are

action in
nel

to be

without the efforts of each

proposed simplification of customs procedures

our

changes that

sentimental (or should

with the

grad¬
relatively
a

is, of course, noncontroversial. But there will be a dif¬
ference of opinion about
everything else they recommend.
If

of business affairs to

man

presented in their defense

certain

Congress when he said:

with much

branches of American business. Here

our

Senator Taft has, we
suspect, well described the attitude

"I don't think the

radical sort

will be met with the

boldly entered
a most controversial field with
proposals which will rarely
if ever find
anything approaching; unanimous support
among legislators, businessmen or the general public.
of

seem

competition is to be offered the industries,
of Germany or of the United States.
Of course, the tariff recommendations and the
argu¬

ment

It is evident that the Committee has

that island

successful

say

increase in

ordinary courage for

undertake the

Moreover, the prob¬
imports
can, in our opinion, be minimized
by lowering the tariff
gradually over a period of several years.
"Imports of finished manufactures which are subject
of

and child

woman

infected, and it is not only a matter of lack of interest,
but positive, almost
aggressive opposition. In the atmos¬
phere that prevails in that country, it would require more

"Increased dollar earnings
by foreign countries would
result in increased American
exports, and

lem

LOS ANGELES,
Swartz
staff

has

Chronicle)

Calif.—Sidney

been

Sutro

Staff

The ,Financial

added

Co.,

Van

Building.

putting the cathode-ray tube
television to protect

greedy

from

Joins Dean Witter Staff

aggression.

Among
vealed

the

uses

studies

are

(Special

already
of

re¬

rockets,

guided missiles and robot planes
carrying TV cameras which can
televise targets and send back in¬
formation

Recently

to
an

ground

observers.

audience

The

Financial Chronicle)

LOS ANGELES, Calif.—Reuben
A.

McLeskey

connected

now

with

Dean

Witter

South

Spring Street.

Co.,

632

Standard Inv. Adds

over

1,200 military and business lead¬
ers
at a meeting of the National

(Special

The

Financial

PASADENA,
is

Calif.

Chronicle)
—

Carl A.

connected

with

Advisory Committee for Aircraft

Villani

at Lewis

Standard

saw

fornia, 87 Soutli Lake Avenue.

■

the

Nuys

Laboratory in Cleveland,
the latest ramjet engine in

now

Investment

Co. of Cali¬

been

formed

continue

the

In order to start

Mutual Funds

in¬

the shareholder must
enough shares to yield a
from net investment in¬

dividend

Realty & Investment Co.

By ROBERT R. RICH

of at least $15 each quarter.

come

Under

Mister

Wellington and Miss Delaware
Disavow

That

old

Marriage Volts

known

man

stomach gets bigger at every

It didn't work.
the

luncheon—put

They wouldn't go

altar
a-a

Not

Boston,

Miss

involve

We cannot,

course,

discussions
whatsoever been
along this
line, but in addition, the parents
no
held

WAll

STREET

The

eatvin bullock
NEW YORK

MM M. tW) MM. MM Ma. Mi MM —

MJLIM

Wellington

family, when
queried, said Mr. Wellington
couldn't come to the telephone. A

family spokesman said,

CfNTLEMEN: At

obligation please send

Canadian Fund,

prospectus on

"Our

son

time

for

known
and

not

nartner

anv

Balanced

intend

however,

looking

this

are

Fund

stay that way."
,

The

Delaware

Family

CHy—

]ectives
Lves
a*,-

„

—#=

Stock

Fund

F unci

and

People are,

completely opposite, as
Anderson, father of 22
children and President of

Heibeit
growing

Group Securities,
course,

attract, and

Custodian Funds

Balanced

°kJec-

course,

Keystone

the

investment

—

Common
of

fact

D-6'0

Name

Address

State

•e+a ^2°+

going to be

there

are

marriages than

births,

vestment Department of National
Securities & Research Corp., left
°n a? extended research trip on
on(*ay. ^r' Munros itinerary
.

lP
es ^ * Louis, Kansas City;
Denver; San Bernardino, Califor-

Angeles,

ma-n

at»«■
Mr. Munro

neapolis and Chicago.
interview

executives
securities

number

corporations

the

thought it would
'

this so-

Securities

Series, and
address several meetings

ke
0f

dealers

the

subject

coast

west

"Portfolio

under the New

ment

Manage-

Administra-

ti0n "
Waln

Hare>

has

just

vice-President

departed

city> Log Angeles and

Hare

'gan

intends

Fran_

National's

visit

service

p0ints and leading dealers in and
around these cities.
west

Fund

de held in Los
to

While

Mr. Hare will

coast,
Mutual

the

attend

Conference

Angeles

whom,

Werly,

Fund in

Horace

Mr.

Forci,

Putnam

and

1937.

represented

total

net

rise

assets

than

$2,000,000 in the first two months
1953, George Putnam, Chair¬
of

man

the

holders,

told share¬
investors
owning"

Trustees,

and

total

now

include

22,500 and

the first time since the Fund

was

started, he pointed out, the share¬

management."
work

higher,"

shall

continue

shorter

emphasize

for

high
grade bonds. In the stock section
portfolio

our

about 65%
balance

our

believe

that

of stocks is the proper

under

condi¬

present

Canadian

March

Fund

Inc.,

accom¬

panying the first quarterly
dend

Jan.

that

stated

31,

1953

total
were

and

that

were

owned by over

divi¬
assets

net

$24,404,356
shares

2,000.000

over

16,000 share¬

holders.

initiation

Delaware

the

threshold

greatest growth."
course,

if Miss Delaware is

young

that

time,

will

The

reinvestment

effective

March

will

program

of the four U.
sponsored

apply to each

mutual funds

Calvin

Bullock—

Dividend

Shares, Canadian Fund,
Inc.,
Bullock
Fund, Ltd., and
Nation-Wide Securities, Inc.
Calvin

Bullock

has

agreed

waive
its
portion of the sales
parenthood, charge on dividends reinvested
his parents say. At least, the tu- at offering price. Dealers will retors—sometimes, called portfolio ceive the entire sales charge, less
managers—'have been conserva- the amount charged by the trust
conservative

eaton & howaho

eaton ft howard

halanced fund

stock fund

principal

represented

portfolio

and paper

Canadian

metals

Fund's

14.01%,

pulp

12.16%, foods and bev¬

4.27%

erages

industries

oil and gas 22.37%,

were

non-ferrous

banks

and

fi¬

3.65%.

nance

OBTAINED

be obtained

FROM

EATON

YOUR

INVESTMENT

SALES OF National Securities Se¬

ries

for

Jan.

the

31,

fiscal

1953

were

reported

highest

the

$11,829,397,

quarter ended

three-

in the history of the
according to figures re¬
today by E. Wain Hare,

month

sales

leased

Vice-President

rities

National

Research

Secu¬

increase of over

earlier.

National

were

Secu¬

reported

Jan. 31, 1951—up
38% from a year earlier. The

$122,950,472
over

assets

Series

rities

single

largest

fund

the

Na¬

Series

continues

be Stock Series with

net assets

$59,099,568

tional

Securities

Income
second

$220,515,000 six months ear¬
Thesfe

with
the semi-annual
the shareholders
of
Custodian Funds "B3"

together
reports

Keystone
"S4".

and

Lower-Priced Bond
reporting to share¬

Keystone

"B3",

holders

first

the

for

of the fiscal year

six

1925-

333

BOSTON

of Jan. 31, 1953.
continues

Series

1953, showed the following com-;
parative figures at the beginning
and

the

fiscal

the

end

$29,814,148.

July 31,.'52 Jan. 3-1, '53

shs.

val.

Net as.

dec.

Div.

Fund

the
No.

assets

net

Total

$42,276,054

$44,452,673

outsdg.

2,310.111

sh.

°$18.30

2,360,581
• $18.83

inc.

$0.45

per

from

-After

payment of 16c
realized security profits.

per

,vliF

$0.46

from

This largest of the 10 Keystone

Jan.

seeks

Funds

provide

genbral

shareholders.

its

for

portfolio con¬
64 different bond issues,
with this goal in mind.

sisted of

selected

The most recent regular
tion

with

pared

each

nual

cents

distribu¬

per

com¬

45 cents per share paid
the

six

last

semi-an¬

periods.

Lines

only

Pacific

"A"

1st

issue

Co.

4V2s,

added

Oregon
was

the,

list

first

six

1977

the

investment

for

its

1953,

31,

the

months of the current fiscal year.
The

following

issues

Baltimore

inated:

Cum. Inc. Deb. 4s,

Co.

1975; Baltimore

Cum.

Inc.

Ch.,

Cent.

Deb.

5s,;

L. &
Co. Jt. 1st Ref. 5s, 1963;

111.

1.975;

elim¬

were

Transit

N. O. RR.

St.

Seaboard Air Lines RR. Co.

Gen.

"A" 41/2§, 2016; and

Inc.

Southern
Ry. Co. Dev. & Gen. 6X/2S, 1956.
Lower-Priced

Common

Stock

tive
end

figures at the beginning and
of the first
six months^ of

the

fiscal

1953,

year

ending

July

July 31, '52 Jan. 31, '53
Total

net

No.

Net

as.

Dlv.

assets

of
$9,298,360

$9,680,035

1,344.867
*$6.91

1,257,899

sh.
inc.

$0.10

Fund

the

shs,

val.

dec,

outsdg.
per

from

$7.70
$0.10

'■After
realized

of 50c
profits.

payment

security

Fund

per

capital
rising

letter to shareholders,

their

acompany-

ing their last dividend checks,
compared the performance of the
Fund

with that of the
the

selected

portfolio

for

three

class fr,om

issues
separate

Diversified

Investment

Fund

upon

request

Loud, Abbott & Co.

FRANCISCO
Chicago

com¬

growth opportunities, in
markets. The Trustee's

Business Shares
A

from

portfolio

S4's

comprises 58 lower-priced
mon
stocks, selected for

American

—,

31,

follows;

were

pe¬

riods—in each of which the Fund

;:'

New York

■j,

current

period:

the* which

largest fund with net assets

Montgomery Street

SAN

months

ending July 31,

Berkeley St., Boston, Mass.
•FOUNDED

made

were

today

24 Federal Street

figures-

by The Keystone
Company of Boston, national dis¬
tributor for the Keystone Funds,
public

BOSTON

Corporation

with

Keystone

Total

it^

31, 1953, compared

lier.

Prospectus
200

Jan.

These

Corp.

HOWARD

INCORPORATED

DEALER

Funds

Fqnds,
net as¬

Fund "S4" also reported compara¬

PROSPECTUSES OF THESE TITO INVESTMENT FUNDS MAY
BE

reported combined
of
$228,129,200 for

Transit
five

The

•r

•

CUSTODIAN

Southern
A LETTER mailed to shareholders

'
\

tions."

Mr. Wellington is a grown man,

Investment Fund

"and

maturities

rates

said,

Products

Refining Co.
KEYSTONE

income

interest

expect

70% from the like quarter a year

this

"We believe that -gram

her

A Mutual

were

"We

McGraw

Corn

over

than 50

Aircraft;
and

Co.

Electric

Fund

The increase in

Southern Ohio Elec¬

and

Douglas

tric;

founders of the

were

sales represent an

continuation

individual stocks included Co¬

lumbus

sets

pro-

Erie; Allied
Interlake-Iron Corp.
Republic Steel. Eliminations

and
of

Inc.

1953.

for

under

Parker

two

Mr.

and

numerous

Bucyrus

Flintkote;

year

announced Wed¬

were

holdings

Stores Corp.;

over

look

trend," he said.

creased

investment

National Stock
stock fund, in¬

common

stocks, some ^ which were Briggs
Manufacturing;
Celotex
Corp.;

Teele

National Securities & Research

corpM

Series,

the

1953,

31,

management

the

high

company,

know better.

The

record

whose

held in the portfolio

are

0f National

presumably,

dealers

holders

rtland; ®P°^.ne'

°u Delaware ciSco.

+u'

to be married now,
someday she will be a big girl and

may

since

Nelson, President of Dela¬
ware
Fund, went on to say that IN RESPONSE to a heavy demand
his daughter was one of the fastby shareholders and dealers, Calest-growing in the country. "We vin Bullock has announced the

too

investment

the

in Boston of the share¬
The
George Putnam

meeting

holders

Mr.

from

for

among' different types of institutions. For

- Mr.
several
of

two

Prospectus

shares.

increase in

Notes" shares in the Fund

3n? tx^u5
Wellington

putting

oiten.

describing
Organization and the shares of your
prospectuses

City

duly

was

"Social

our

one

extensive business trip which inciucjes visits to Chicago, Salt Lake

50 Congress Street, Boston 9, Mass.

Funds.

be,

may

^
th5i
J1® ?? are
w°n
Philadelphia families, Mr.
Wall Street Rumor,

The Keystone Company

ten

this

know—as

say opposites
both Miss Dela-

ciety editor will have none of it.
If son Wellington and daughter
Delawaie ai en t speaking, the two
families are, and have tea quite

COMMON STOCK FUNDS

your

that

speaking only to
Howards
to

ago—from now
mutual fund families

tell you.

can

BOND, PREFERRED AND

known

From All Over" column only five

they

since

and

Please send

the

all

However

are,

course, known as Common Stock
Fund people, and the social ob-

full

Trustees

assets

net

be reinvested
in

and

se¬

People

Address.

holders.

■

year,

net

meeting
under a
of Delaware Fund have no inter¬
Republican Administration, but
est in entering into any marriage JOHN MUNRO, Vice-President in
"no change in
basic investment
discussion with any other parents." charge of the Economics and Inpolicy is contemplated by the

ONE

■M a

only have

ELECTION

ensuing

speaks

reported

clear

too

lives

Griswold, and Mr. Grisonly to the press,
Putnam Fund, as everybody
knows, speaks only to its sharewold

years

make

Howards,

however,

cannot

cousin,

Merrill

completely

are

Eatons

the

speak for anybody else's daughter,
The parents of Delaware Fund,
that not

are

unfounded.

recently.

the

from

value

asset

shares,

heard

been

But

Fund

distributions

net

price,

offering

from Fund.
course,
in Boston,
Re-elected to serve as Trustees
difficult art at best.' were, George Putnam, Charles M.
many things to be
Werly, Louis J. Hunter, Stanley

hasn't

considered.

rumors

fractional

and

Jan.

who

Rumor

ber

"Such

Rumor's

Street

marriage is a
There are so

full

will

nesday following the 16th annual
Wall

"The

Delaware

Miss Delaware

Fund for that purpose.

shotgun in the backs

reinvested

*lve enough as every social release end to a
$63,000,000,
to this editor points out.

state

family has received a numinquiries relative to persistent social gossip that the parents of a large local mutual fund
plan to sponsor a common stock
i'und and are making dowry arrangements with Miss Delaware

/ -r

whose

income

curities prolits will

Rumor

dividends

program,,

investment

total

only did they turn and run
at the sight of each other, but W.
Linton Nelson, proud "papa" of

Fund, stood on his
front
porch this afternoon in
Philadelphia and said, in effect,

A-

Street

Wall

the

net

while

Wellington and Delaware Funds and tried to get them married.

The

from

During the fiscal quarter ended

cost

reinvestment

program,
own

Mid-Coast

business

vestment

the

cover

putting through each transaction.

BEACH, S. C.—MidInvestment
Company has

Coast

company

Mid-Coast Inv. Co.
MYRTLE

1953

Chronicle... Thursday, March 5,

The Commercial and Financial

(1030)

—

Atlanta

—

Los Angclcx

Volume 177

Number 5200 ...The Commercial and Financial Chronicle

(1031)

i
'V

had

than

substantially better record

the class. The table

follows:

during 1952 totaled $25,709,760

compared with $22,252,444 in 1951.

Percentage Cnange
b4 Oiass

S4 Pitnd

6-30-52—12-31-52

2.24

11.03

12-3i-ol—12-31-52

0.61

20.79

6-14-49—12-31-52

+ 81.12

Additions to the
vestment since
as

+138.29

S4 list for

July 31, 1952,

were

South American Gold & Platinum

Co., Steep Hock Iron Mines, Ltd.,
Stromberg-Carlson Co. The fol¬
lowing issues were eliminated:
Chicago & North Western Ry. Co.,
Continental Motors

largest

ELECTRONICS

Tuesday

first

assets

reported

quarter

the

increase

its

crease,

history. The in¬
according to the company's

report

for

in¬

Brothers, Chi¬
cago & Southern Air Lines, Inc.,
Consolidated Coppermines Corp.,
Delta
Air
Lines,
Inc.,
Martin
(Glenn L.) Co., Skiles Oil Corp.,

and

Fund

net

Butler

lonows:

TELEVISION

ended

its

Jan.

$3,798,251
to

first

ASSETS

and

boosted

net

assets

high of $26,301,767 at

503,516
asset

Oct.

value

creased

31,
share

per

to $14.56

31,

1953,

the

end

from
of the

also

$13.57

in¬
Jan.

to lan

creased

all-time

high
quarter,

about double the number of shares

Inc.,

outstanding

and President of I. D. S.

man

At the year

net assets of the three funds—In¬
vestors

Stock

Mutual

Fund,

Inc.;

Investors

and

Investors

Selective Fund Inc.—were $494,904,147, as compared with $364,695,574 at the close of 1951.
The

gain in assets, an all-time
yearly record for the funds, was
due

substantial

increase

combined net sales, as well as to
market appreciation of their total

holdings of securities.
Net

sales

after

225,
gle

the

funds'

redemptions

was

result

$109,367,-

all-time record for

year.

sin¬

they had 139,400 shareholders.
Redemptions for 1952 were
all-time

low

rate

percentage¬

wise.
age

Throughout 1952 the aver¬
monthly redemption rate for

the

three

their

told

was

only 3.66%

monthly

average

net

assets.

Combined dividend distributions
to shareholders of the three funds

the

Jan. 31,

ended

President,

that

Jan.

the

for

last,

31,

the

growth in net assets of $14,008,842
through appreciation and sale of
shares

was

the

largest for

12
months' period in the Fund's his¬

days'

Mr.

Tripp
pointed
strides have

theless

growing

For your

—check

fields

than

matter

3,346,727.

end

elec¬

every

continued,

trial

installations."

The

fund

that

executive

this

had

will

little

1953

the
total

The

terly

dividends

fiscal

from

during

and

also

declared

12-m

As of

folio

Jan.

14.85%

with
The

5.92%

different

industry

common stock

718,378

sets

comnared

with

date,

can

ex-

Amer.

Co.

Inv.

Arizona

Pub.

Community
Florida

Pub.

Power

Co—_

Serv.

4,600

26,200

Corporation

1,500

13,500

Util.

2,000

6,300

3,900

29,200

Pacific

and

Socony Vacuum
Southern
Union

Oil

13,500
7,300

28,400

5,000

12,600

12.600

22,000

3,000

24,800

4,400

12,400

Corp

Now

Amer.

Cyanamid

Continental

Oil

Gulf

Util.

States

Inter.

Co.„
Co

Harvester

6.000

3,400

15,500

Co______

8,600

Copper Corp.___

6,600

Utilities

____

8,000

Virginia Elec. & Pow. Co._

6,000

•

17,300

2,400

•

of the general

SELECTIVE FUND) Inc.

The

free copies of this literature

Kidder, Peabody & Co.
1865

Members New York Stock

/SECURITIES

Uptown Office 10 E. 45th St., N.Y. 17

yoiir

terly
share

has

payable

ary

27,

Investors

declared

nine

quar¬

cents

per

March 20, 1953 to

record

Febru¬

1953.

built

selective fund,

the

■■■■■■■■■

<!■■■■•■■
■■■■■■
■ •■■■

Blltl
'•••a
«■■■

llll
ifl«S

liar
*■••■

■•■at
■■■■■■■
■ ■•■■•Is

■■■■■*

■■■I
■■«

Quarterly Dividend
share from ret

investment

ircon-.e, payable March 31 to stock
cf record March

11, 1953

WALT! R L. Ivor CAN. President

Prospectus

request

—

Dealers'Inquiries invited

fhilcdelfhia 3, Pa

between

the

two

our

relative

em¬

the trial

have learned

error—we

administration.

There will

never

again be the desperate improvisa¬

sometimes

tion of the early days of the New
Deal. If we are not entirely in
control of our destiny on agricul¬

con¬

destiny,

tural

matters, at least we are not
entirely at the mercy of events.

that

since

economy

the

sion.

be.

properly be

can

the

possibility

but

can

confident

social

dispute

the-point, I "Would Say

that it is

labor

resist

wage

years

concerned
of depres¬
reasonably

ability

our

to ward

pose

cutting
Our

the

for

the income tax

the

year

virtue

—

good

this

re¬

word

source

decline and taxpayers move
lower income brackets.
What

in the event of

serious

the

Stock

Ex¬

and

other

pal

princi¬

stock

c o m m

and

dity

exchan ges,

that

announce

Herbert

slump, it would be wise policy to Wyeth

has

cut tax rates and let
people spend
more of the
money they receive.

There

this,

what they are.
happy thought for to¬

ization

is plenty of scope for

rates

being

Co.,* 14

York

change

m e m-

New

season

Hammill

Street,
York

City,

that

This tax has the unique
reducing itself as in¬

Shearson,
Wall
New

bers

sup¬

imagine
at

was

increased

would have

anyone

position

than

income tax—I

hard

Shearson, Hammill Co.

strength that

better

ago.

source

joined
i

the

m's

organ¬
spe¬

cializing

Herbert

F. Wyeth

day.

railroad

Finally, in agriculture we have
the structure of support prices and
the related machinery for adjust¬

merly with Shields & Company.

ment of

supply to demand.

LVen

acutely

for

unfortunate

last

and

ever

word

York

cents)

marketing

the

that

our

two

quotas.

years

City,

speculation"

levels

During

Wyeth

was

for¬

Stuyvesant F. Morris, Jr. & Co.,
New

methods of setting

certain

Mr.

transportation

Offered at $1 a Share

not

It would

had found the final

supports

were

other

Doug Allan TV Stock

con¬

one

and

securities.

after nearly 20 years our
agricul¬
tural policy is still

Film

are

offering

"as

issue of 163,102

stock

common

Doug

(par

Allan

and

Inc.

at $1

per

Productions,

share.

farm

policy will
undergo another of those periodic

reviews to which it has been sub¬

pay

The net proceeds
the

stock

are

from the sale

used

for 39 films, at a total esti¬
ject—at the instance of either the mated cost of $58,500; and the
Supreme Court or the Congress— remainder
added
to
working
ever since
1933.
We can reason¬ capital.
The Doug Allan corporation was
ably suppose that we will have
changes in that policy—this is why incorporated in Delaware on Jan.
we
have changes in government. 30, 1953. The basis of its business
Yet I hazard the guess that — is the acquisition of motion pic¬
after the debate over fixed and tures
made
by
famous
world
flexible
supports and after the
travelers, explorers, and adven¬
consideration of price insurance
turers
f o r
use
in
television,
and other ideas as
yet

20c per

lies

Herbert F.Wyeth With

there is

93rd Consecutive

economy.

chasing power of the workingPeople's savings are also
much larger. While there is some

acreage

■■■■■*■■■■■

total

good deal about procedure and

man.

-•■■■•■■■■■■■■■■■■a

bring

off the worst of its consequences.

formula—the

inc.

Minneapolis, Minnesota

and

'thirties.

think that

MUrray Hill 2-7190

not

the

bear in mind

troversial—and

Wajf;5treet, New York 5, N. Y.

into

sus¬

security which
will cushion the drop in the
pur¬

be
investment dealer

that

said,
we

greatly regret this fact.

H. k. Bradford, Pretldenl

request

Distributors Group, Incorporated
63

of Directors

Fund

dividend

shareholders

fou(|

prospectus on
from

Exchange

^(fil ill

\kV

Board

Selective

mean

act if

can

free

and incomes

does

difference

parties

about

the

Notice of 29th Consecutive Dividend.

the

good deal of stability has been

This is my

A Balanced fund

prices

Nor need

is more,

Group Securities, inc.

leading research

come

comes

FUND

small living
histories.

has

economic

strength.

4,000

7,865

8,500

10,890

Company.

ADMINISTERED

____

4,900

Incorporated

Company
Company

T«xas

Owns

8,000

Oil

Texas

Sold

6,000

'thirties.

early

Through trial and error—perhaps

helplessly its victim. There
something we can do. Moreover

liance

Co.__

farm

emergency

are

know that action to

disaster

the

not

There

5,000

_LL___

Carbn.

tain

price
in

the

know that

now

must;

people the word

While

our

early

2,000

Co___

Company

Car.

2,000

believe ourselves to have

are

10,000

Public

Johnson

than

something

should also

& Pow. Co._
Southern Util. Co,__

thing.

these

surely
happier position than

were

difficult
we

phasis that is placed

over

Owns

17,460

Ltg.

fear.

exaggerate the extent of the

18,500

Corp

word

favorable

outset, that I think

3,500

Corp___.__

the

future

farm

most

depression

were:

14,099

less

the

1929-1932.

Motors

Iowa

and

limits to

are

right in thinking that the
of large exports is passing,
stockpiles could grow very

much

word to be used

good price

There

rapidly.
Yet,
problems are,

can
reasonably
possibility of lower

the

7,949

this.

Gen.

Rayonier

SMALL

prices

4,500

Co.

question

answer:
a

corrosive

these

depression?
first step, we

strong

ratios

10,000

111

recent past. But the word
depres¬
sion means a good deal more than

holdings during the

Serv.

Farmers

count

Gen.

Houston

here.

classifications.

Procter & Gamble Co,_____

THE FULLY

Fear

changes

the

rid

for

market.

still unsolved.

day

get

also too

in¬

that although the re¬

should

and

list

Holdings Decreased

only relatively minor im¬

Perhaps,

Now

404,933 in January, 1952.

portance

cash

Bought
Ltd.

genera¬

Depression

come

invited

de¬

comprehensive,

the stockpiles of cotton, wheat and
corn which we can
carry—and if

Farm

now

you

Holdings Increased

Aluminium

the

income

well

Moreover, within
agriculture we have yet no design
for making a support price system
comprehensive — the problqm of
aid to perishables, which could be
a
point of great vulnerability, is

For

consequences.

farmers need to fear

trol

Northern

Severe

gain

three months ended Jan. 31

highest volume of sets in history.
an

its

time within

however

and

substitute

poor

Sight

stocks

principal

signed

may

disaster

Among

Lead

that January saw
production
record

55.01%

stock

Any system of price

Plan

helped Europeans to do so by
helding restore their farm plant.
We should not be surprised that
has

Depression?

guarantees,

re¬

Marshall

markets.

preferred

common

noted

stocks, 24.22% corporate

and

the

be facing a readjust¬
agriculture—a partial re¬
adjustment at least—to domestic

o n t h

per

agriculture

Under

ment of

31, the fund's port¬

made

was

common

National

all-time

European

wanted

year

capital

way.

the second

distribution of 35 cents per share
payable in February, 1953.

Johnson

that

success

investment

the

period totalling 85 cents

the

see

tion

3,894,511

number

of the

page

a gain of
about
the previous year.
fund declared four quar¬

teleset makers turn out the second

year

ned

over

reason

television.

fact."

from

Need Farmers Fear

22,942,

was

20%

stocks

widespread applicability in indus¬

you wish—mail this
adveriisement with your personal or
business card.

Qp.g

increased

shareholders

notes.

"television itself has already found

items

Founded

31,

for

FEASIBLE—

case

study

Jan.

anticipate
an
even
greater
in the non-entertainment

business outlook for the remainder

by
corporation.

current

reports

growth

□ THE BUSINESS SITUATION—An

of 1953

FUND

standing

and

uses

dustry that there is

Prominent New York
attorney
discusses how Mutual Funds make

invaluable

the

three

share increased to $24.01 from
$23.23 last year and shares out¬

that

tronics," he went on, "have found
such widespread acceptance in in¬

SERIES III

trust. Contains

only

per

are being made
constantly in the
cluded
applications of electronics to vir¬

CHECK LIST

possible to have

stored.

ended

year

Skelly

net assets of

out

INVESTORS

TRUSTS

see

been

tually alii'segments of industry.
"These little-publicized, but none¬

Continued

rate.

Kennecott

LIVING

equal

production

bonds

amazing

been of

MAKE

levels

any

tory.

He added

□ MUTUAL FUNDS

all

inventories

income

placement factor in this field has

Profession^

ventories

1952.

Tripp,

shareholders

doubt

funds

during

Chester;: D.

these

sales the funds added 23,400 share¬
holders in 1952. At the year end

1,806,158

months

end, total combined

"healthy condition" with factory

from

fiscal year.

funds distributed and
managed by
Investors
Diversified
'
Services,

Minneapolis,
increased
$130,208,573 during 1952, it was
reported by Earl E. Crabb, Chair¬

felt

$93,494,006 compared
$22,- with $77,743,045 a year ago, an
increase
of 20%. Net asset value
1952.
Net

The number of shares outstand¬

itself

the close of the period, from

Corp.

three mutual

make

quarter

ing in the hands of the public in¬
TOTAL

31, last, amounted to BOSTON

record

fiscal

pected

growing degree as each month
goes by. He described teleset in¬

adhere.

shall
that

unborn—

principle to which

one

farmers

That
are

the

entitled

notion
to

theatres,

effects

Agreement
to

to be

market

(Special

this principle seems
good deal more im¬

method.

to The

Financial Chkonicle)

CARBONDALE, 111.—Emmet M.
Norman
tfT

outlets

Waddell & Reed Adds

forces.

portant than any foreseeable dis¬

agreement

educational

rea¬

sonable shelter from the uninhib¬
ited

and

throughout the world.

is
0_

affiliated

now
D /aa/I

>+ o

with

The Commercial and Financial Chronicle

(1032)

The

Indications of Current
Business
AMERICAN

steel

Equivalent
3

Steel

operations

Mar.

INSTITUTE:

condensate

and

Month

Year

Week

Ago

;

97.7

101.9

2,244,000

*2,240,000

2,202,000

2,117,000

6,542,950

6,544,500

6,491,750

6,365.800

117,079,000

7,017,000

7,031,000

6,599,000

24,241,000

23,552,000

23,154,000

21,528,000

fuel

oil

■

3,065,0d0

2,708,000

2,759,000

2,630,000

Feb. 21

10,871,000

10,582,000

11,121,000

10,552,000

9,013,000

8,773,000

8,771,000

9,024,000

135,857,000

154,439,000

145,879,000

150,900,000

(bbls.)
fuel

fuel

ASSOCIATION

oil
oil

Feb. 21

21,357,000

21,815,000

23,890,000

19,825,000

Feb. 21

71,430,000

74,978,000

85,179,000

59,573,000

(bbls.)

at—

Feb. 21

44,364,000

45,954,000

46,918,000

38,484,000

AMERICAN

Revenue

freight loaded

freight received from connections

Private

(number

Feb. 21

689,553

681,750

697,641

683,551

of cars)—Feb. 21

663,354

666,145

664,328

661,517

cars)

CONSTRUCTION

(no.

COAL

——

construction

State

and

Federal

February

(U.

—i

coke

Private

EDISON

State

Month of
S.

IRON AGE

steel

Pig iron

81,403,000

453,422,000

(E.

Europe

Asia

Africa

8,520,000

8,350,000

9,210,000

10,213,000

632,000

527,000

550,000

123,700

*119,100

118,100

845,000
139,600

Total

(New

Lead

(St. Louis)

Zinc

(East St.

INDUSTRIAL)
/-

MOODY'S

BOND

Aaa

Feb. 24

8,150,534

•

178

176

4.376c

162

163

4.376c

4.131c

$55.26

$52.72

Feb. 24

$44.00

$43.67

$42.00

—

—Feb. 25

27.825c

24.200c

_—Feb. 24

—.

———

—,

Group

34.475c

27.425c

121.500c

DAILY

Service
COTTON

Number

112.19

113.89

Mar.

110.15

110.34

110.70

112.75

Active spindle hours per spindle in place Jan.

Mar.

106.92

107.27

107.98

108.52

Mar.

103.30

103.47

103.30

103.80

DEPARTMENT
ERAL

other

Customers'
Dollar

106.04

106.21

106.39

RESERVE

107.44

107.62

108.34

109.24

AVERAGE =180 —Month

Mar.

110 52

110.88

111.25

113.50

2.86

3.29

2.80

2.86
'

3.27

3.15

3.32

: ;

3.19

3.05

2.96

3.13

3.02

3.28

3.52,

3.39

3.38

3.37

_Mar.

3.31

3.30

3.26

3.21

.—Mar.

3.14

3.12*

3.10

2.98

Stocks,

Nmnber

ARD

3.52

418.7

410.0

405.4

434.1

Feb. 21

198.S87

217.420

202.039

173.186

Feb. 21

238,981

245,665

239,985

211,365

period.:

—Feb. 21

471,623

514,273

462,564

355,934

107.89

108.62

111.85

HOUSEHOLD

LIFE

Short

sales

Other

sales

ROUND-LOT
ACCOUNT

Round-lot
sales
sales

ROUND-LOT

STOCK
OF

SALES

THE

NEW

sales

—

purchases

.Short

sales

Other

sales

Total

Other

sales

Jan.

873,849

802,245

$33,945,871

606,221

NEW
=

166,580

266,590

4,203

256,400

Group

*113

255,886

243,032

230,226

277,309

310,661

24.395

16,798

62,260

70,584

213,993
15,636
•'

45,121

■

...
.

266,590
380,960

/■;
$141,626,000

40,498,000

32,337,000

9,244,000

7,874,000

128,870,000

28,595,000

——__i

!53,198,000

45,127,000

47,712.000

117,278,000

48,501,000

101,391,000

$304,060,000

$364,243,000

._i_

$417,402,000

•

$141,621,000
37,549,000
■,

7,988,000
27,987,000

INSTITUTE
,

♦

$1,948,000

$1,609,000

$1,565,000

421,000

474,000

436,000

950,000

373,000

477,000

$3,319,000

$2,516,000

$2,478,000

$24,133

*$23,835

$22,884

19,497

19,743

20,155

$43,630

*$43,578

$43,039

—

•

^—

v———

$26,147,144

236,930

170,330

2~36,930

170,330

339,090

(DEPT.

—_—

-Month

INVENTORIES

COMMERCE)

December

dollars):

—

J————
——i—

—

Nondurables

;

SERIES—

SALES

NEW

(millions

Inventories:

276,970

Durables

286,500

8,200,870

865,440

867,250

1,052,910

805,090

Industrial

191,280

150,920

172,860

151,860

Railroad

756,390

685,170

1,054,710

947,670

836,090

1,227,570

ACCOUNT

321,050

—

the

Seles

—As of

200

Feb.
"""Feb.

I Feb.

Feb.

173,430

Feb

""""

696,110

tUtilities

847,370

Banks

rFeb.

HHH

191,790

297,230

10,500

23,900

14,500

201,010

364,260

196,500

Feb.

234,140

211,510

378,160

211,000

Feb.

305,023

302,710

358,587

321,685

55,850

53,550

58,420

42,940

"Feb.

374,647

300,152

413,249

288,794

r__riIIII_IHII~II~_Feb-

430,497

353,702

471,609

331,734

1,343,893

1,361,750

1,708,727

1,315,875

•

Peb

ruh

253,430

214,970

255,180

209,300

1,348,877

1,186,332

1,822,219

1,181,40*

DEPT

1,612,307

1,401,302

2,077,399

1,390,704

against the Jan.

Total

listed

value

listed

REAL

1952

foreign

basis

borrowings

ESTATE

*109.6

109.5

111.7

98.2

98.5

99.4

106.3

*105.3

104.6

112.5

Feb. 24

97.4

*97.6

.95.5

112.4

Feb. 24

113.1

112.8

112.7

crude

runs.

LOAN

—Month
109.7

§Based

108,5 87,670'tons.

new annual
capacity of 117,547,470 tons
including Aner. Tel. & Tel.

free

—

collateral

5.81
>

6.35

5.08

5.03

5.49

5.32

4.29

4.50),

3.17

3.07

3.41

5.22

5.15

5.73

$1,345,031

$1,365,659

$1,289,149

33,455

33,747

344,121

390.224

731.781

727,339

808,965

120,482,594

120,536,170

lll,530,425t

100,116.011

100,255,735

96,268,777

G1.981

204,848

34,998

952,029

1,001,774

656,400

$539,936

$526,128

$420,696

SAVINGS

CORPORATION

(000's

omitted):

companies

banks

lending

30,790

372,256

NONFARM

FEDERAL

associations.

trust

Total

Govt. hsues__

other

December

companies

balances

bonds

INSURANCE

Insurance

Mutual savings
Individuals

shares^.

Bank

and

5.52

accounts—
balances—

credit

FINANCING
U.

Savings and loan

Miscellaneous

tNot

debt

banks

customers'

105.4

and

value

AREAS

Feb. 24

margin

net

customers

Member borrowings on U. S.

Feb. 24

Market

AND

barrels

carrying

customers'

hand

omitted):

(000's

Market
Member

5.18

5.26

EXCHANGE—

extended
on

—

STOCK

January

Cash

!____

firms

20,962

$29,206,000

Feb.:

(10)

*23,465

*$30,236,000

5.69

—

(2001

Credit

YIELD

—

(15)

Total

652,000

(25)

Member

24,200

$30,433,000

DEPT.

—_————

(24)

AVERAGE

STOCKS—Month

(125)

NEW YORK

of members—

WEIGHTED

Average

189,100

16,300

217,840

thefloor—

—

—.—,

(000's omitted)

COMMON

Insurance
■

—

December

MOODY'S

floor—

account

MONEY IN CIRCULATION—TREASURY

MEM¬

111

•,

Industrial

602,018

MANUFACTURERS'
'

166\580

Feb. 24

^Includes

114

LIFE-

—

7,914,370

.—.

figure.

——

omitted).

325,320

SERIES

100):

■

•

—

institutions
L

;
^

*100

——

—:

Ordinary

10,360,350

foods

^953

—

LIFEjN^URANCi:—Month of December

(000's

21,823

806,943
'
4,698

$35,217,630

products

5,930

10,035,030

commodities-

'Revised

-634,874

Pph

PRICES,
LABOR—(1947-49
Commodity Group—

Processed

•

$26,121,196-

.-I—_-_I—I—Vob.

sales

;

$168,314,000

__H—H—

Total

261,770

sales

102

ASSOCIA¬

PAYMENTS

LIFE INSURANCE PURCHASES

8,435,740

HIIIII""

WHOLESALE

Farm

132

29,313'

>879,779

3,178

Feb

All

21,955

,133

8,697,510

___

Other

29,446

9,047,830

sales

-r

-—

dividends

9,363,880

Total sales

Total

Policy

736,039

$33,312,942

;

*79;:

101

HOME

(units)-

*81
...

"■

January:

values

Total round-lot
transactions for
Total purchases

Short

26,181

.I—IIIIIIH

;

transactions initiated off
purchases

Other

.-175

■

101

endowments

Feb.

IHIII
—~
_IIim_I

sales

IRONFRS

MANUFACTURERS'

Disability payments
Annuity payments

I~rI~I~
'"""Feb.
——I—
"""""""Feb.

__.

sales

Short

AND

178
•.

MANU¬

(AMERICAN

—

January:*

benefits

Surrender

YORK

SIZE

78
*

INSURANCE—Month of December: ;

TRANSACTIONS

Total
.

WASHERS

20,120,000 X

(SHARES):

FOR

•____

transactions initiated

Total

166
30,893

638,052

Feb. 14

—J—

—„

Total sales
Other

,31,059

22,560

BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS:
Transactions of specialists in stocks in
which registeredTotal purchases
Feb.
sales

sales—

TRANSACTIONS

Other

32,199
918,371"
$39,017,000

Feb. 14

STOCK

MEMBERS

—

Short

•

Feb. 14

IIII__IIII«IlFeb.

FOR

Other

22,648

Feb. 14

by dealers—

EXCHANGE AND ROUND-LOT

Short

1,036,903

$44,249,552

Total sales

716,030

$31,646,828

Total—

sales—

Total

35,698

•"""-"""Feb.14

TOTAL

24,871

Feb. 14

IIIIIIIIlFeb.

465.0

•

_Feb. 14

•••'

10,686,000

483.3

STAND¬

—

CLEANER

INSURANCE—BENEFIT

Matured

•

8,637,000

501.3

——

ASSN.)—Month

Factory sales of dryers

20,290,000

11,521,000

(number of units)

LAUNDRY

(customers'

———

23,070,000

20,314,000

1917-194!)

Factory sales of washers (units) L„
Factory sales of ironers (units).

Death

Feb. 14

sales)—
total sales-.:——

23,082,000

FEDERAL

—

CLEANERS

(VACUUM

121,273
620,278 '

20,120,000 f!

-■

by dealers—

Round-lot purchases
Number of shares

SIZE

FACTURERS'

114,027

adjusted

VACUUM

Factory sales

._II—II—IIllFeb.

POLICYHOLDERS—INSTITUTE
107.88

14
sales--— ■_—____z__Feb. 14

shares—Total

seasonally

HOUSEHOLD

4,954,558

903,432

3.25

3.54

3.42

3.55.

923,219

1,677,299
.

20,290,000

(average daily), unadjusted————Y
Sales (average daily), seasonally adjusted—
Stocks, unadjusted

'3.08

"3.25

697,984

1,602,810
7,802,862

1,034,865

Sales

2.73

BANK

FED-

January:
(average monthly), unadjusted—

Sales
A

—.Mar.

H___Feb.

sales—-_

DISTRICT,

105.52

Mar.

Round-lot sales

RESERVE

1,114

COMMERCE):

SALES—SECOND

sales———I__HIH~Feb.

other

Mar.

sales—„~Feb.

value

(DEPT.

STORE

1,152

1,733,358
111,009

111.62

1,443

20,314,000

31———

111.07

SPINNING

6,812

4,253

1,549

1,477,283

January

Jan.

——————

shares—Total

Customers' short

Mar.

SECURITIES EXCHANGE COMMISSION:
by dealers (customers' purchases)—•. :

Customers'
Number

month

Spinning spindles in place on Jan. 31
Spinning spindles active on Jan. 31———1„
Active spindle hours
(000's omitted). Jan-

96.54
109.60

7,460
4,759

19.500c

108.52

•

;

893,808
31

31—

31-1-

Jan.

TION)—Month

shares.————

Jan.

Mar.

—

orders—Customers'

storage

108.16

Customers'.short sales—

5,992 ■<

BALES:

107.80

public

STANDARD

—

at end

RUNNING

—

Linters—Consumed

ASSOCIATION:

dealers

7,108

COM¬

value

Number of

3,360

7,172

1,162
OF

Lint—Consumed month of January
In consuming establishments as of Jan.

STOCK

Dollar

4,200

1,578

Mar.

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
*
*
1949 'AVERAGE; = 100
_Feb. 27
STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y.

Odd-lot purchases by

3,962

4,069
—

DEPT.

—

order's.—.—.

5,205

——.—

LINTERS

Cotton spindles active

credit

AND

Stocks

Mar.

INDEX—

95.79

•

Group
Group

7,322

5,314

4,439

18.800c

3.34

sales

13,314

9,405

7,179

19.000c

Mar.

Number

$20,126

16,513

9,383

12.500c

—

Odd-lot

$23,973

16,555

loans—^

payment

13.800c

3.16

EXCHANGE

$23,734

Charge accounts

14.000c

3.11

RE¬

—

13.500c

Mar.

Production (tons) —:
Percentage of activity
Unfilled orders (tons)

27X651

short-term

94.89

(tons)_

5X960

—

13.300c

received

2X5IO

—

13.500c

•

Orders

303,369

31:

—

13.300c

AVERAGES:

-1

NATIONAL PAPERBOARD

credit

COTTON

COMMODITY

FEDERAL

Jan.

11.500c

Government Bonds

Industrials

Feb. 25

MOODY'S

THE

Estimated

94.85

—

Utilities Group.
Industrials Group.

Railroad Group
Public Utilities

583,020

412,558

11.375c

—

corporate

464,526

144,979

Noninstalment credit

Single

Public

Average

166,489
tons)-

——

YIELD

OF
—

Feb. 25

—

BOND

35.125c

121,500c

AVERAGES:

Railroad

151,091

anthracite'

(net

—Mar.

DAILY

35.100c
121.500c

Feb. 25

—

222,341

228,930

414,397 "

tens)——

credit

MERCE

———

:__—

Baa

480,062

99,166

7,415,966

Feb. 24

—

PRICES

272,710

$783,429

OUTSTANDING—BOARD

millions

consumer

Loan

Feb. 26

at—

—

MOODY'S

8,196,186

corporate.

8,069,760

QUOTATIONS):

U. S. Government Bonds

Average

DUN

—

——

at—

Louisi

374,03,2'..

tons)—

Automobile
Feb. 28

——

——————

York)

708,992

tons):

CREDIT

Sale

copper—

tin

1,177,528

AND

$1,886,520

371,876

tons)-

(net

Instalment

Feb. 21

PRICES:

(net

SYSTEM

Credit

-$74,059

MINES) —

America

(net

GOVERNORS

SERVE

•$74,738.

651,145

——

(net

CONSUMER
-

INDEX—FEDERAL RESERVE

refinery at——

Lead (New York)

90,428.000

lb.)_

Export refinery atStraits

75,248,000

48,249,000

Pennsylvania

America

42,179,000

(per gross ton).

Domestic

Baa

South

43,980,000

INC—_—

(per

PRICES

Electrolytic

MINES):

(BUREAU

and Central

146,439,000

10,266

.20,754

$1,023,021

tons)

102,509,000

(per gross ton)

Scrap steel
METAL

U. S.

217,099,000

$43,039
:

December:

34,393,000

AVERAGE =100

COMPOSITE

Finished

$165,676,000

—Feb. 21

(COMMERCIAL

municipal

exports

62,649,000

(in 000 kwh.)_——

BRADSTREET,

and

EXPORTS

ELECTRIC INSTITUTE:

FAILURES

•

$599,911,000

*10,191
*20,969

Federal
COAL

28,256,000

STORE SALES

Electric output

$144,052,000

*$43,578

10,187

21,055

EN¬

—

construction

18,337,000

BUREAU

SYSTEM—J947-4J)

CONSTRUCTION

NEWS-RECORD —Month

construction

Public

87,240,000

(tons)

DEPARTMENT

$43,630

construction

105,577,000

Bituminous coal and lignite (tons)-———_—
Feb. 21
Pennsylvania anthracite (tons)
b_.—.—Feb. 21

Beehive

$322,676,000

—Feb. 26

—;

——

Ago

Dec.:

(000's omitted):

—Feb. 26

Feb. 26

—

—1

OUTPUT

——————Feb. 26

—

municipal

ENGINEERING

To North

—..Feb. 26

—-

Year

Month

COM-

1;—

.■

(net

construction-—

dollars):

GINEERING

ENGINEERING

—

construction

Public

Month

—

of that date:

are as

$74,872
CIVIL

NEWS-RECORD:

Total

SERIES

RAILROADS:

Revenue

ENGINEERING

DEPT.

Retail

Total

at.,

(bbls.)

of quotations,

cases

Manufacturing

Feb. 21

Distillate

NEW

Wholesale

Stocks at refineries, bulk terminals, in transit, in pipe lines—
'
•
Finished and unfinished gasoline
(bbls.) at—
Feb. 21
Kerosene

or,

INVENTORIES-

(millions

(bbls.

average

output (bbls.)
—
Residual fuel oil output (bbls.)__—;—~i—it——

CIVIL

BUSINESS

■

output—daily

Residual

that date,

either for the

are

Month

'99.4

production and other figures for the

cover

Latest

99.5

—Mar

——

each)———*—
——-——•——-Feb.
Crude runs to stills—daily average (bbls.)
Feb.
Gasoline output (bbls.jtj —r—Feb.
Kerosene output (bbls.)—
Feb.
Distillate

month ended

Latest

Thursday, March 5, 1953

Dates shown in first column

MERGE

(net tons)——

gallons

month available.

to—

PETROLEUM

oil

Crude

of capacity)-

(percent

ingots and castings

AMERICAN
^

week

Activity

STEEL INSTITUTE:

IRON AND

Indicated

following statistical tabulations

latest week

125,707

115,594

122,071

305,498

298,066

263.110

111,963

103,538

90,609

225,400

217,193

207,167

244,953

231,871

204,498

$1,553,457

$1,492,390

$1,308,151

Volume 177

Number 5200... The Commercial and Financial
Chronicle

(1033), a

Securities Now in
if Airton, Inc., Linden, N. J.
March

bonds.

Price—At par.

(letter of notification) $200,000 of debenture
Proceeds—For general corporate
Business—To

purposes.
nents.

Office

—

manufacture

East

Elizabeth

electronic

compo¬

Ave., Linden, N. J.

Price-^-At

etock

(par

one

common

cent). Price—50 cents

per share. Proceeds
Office—Room 308, Texas Eastern
Bldg.,
Underwriter—W. C. Doehler Co., Jersey

—To drill wells.

Shreveport, La.
City, N. J.
•

Arizona Public Service Co.
(3/11)
Feb. 16 filed 378,000 shares of common stock
(par $5).
Price—To be supplied by amendment.
Proceeds—To
finance capital expenditures.
Underwriters—The First
Boston Corp. and Blyth &
Co., Inc., both of New York.

if Ashland Oil & Refining Co.
Feb.

filed

100,000 shares of cumulative second pre¬
stock, $1.50 series of 1952 (np par) (convertible
prior to June 15, 1962) to be offered for subscription
by
ferred

officers and employees of
company and its American
and Canadian subsidiaries under a
"Restricted Stock Op¬
tion Plan for

Employees."

fix

the

Price—Alternate

provisions

purchase price at

85% and 100%, respectively,
of the market value of the stock at the time
the options
are

market.

Proceeds—For

•

Central
9

Maine

filed

Power Co.

Underwriters

ding.
fin

—

Probable

bidders—Halsey, Stuart

Park

bula,, Ohio. Underwriter—None.

Ave.,

Ashta¬

Co.

(jointly); Harriman Ripley & Co., Inc.; Salomon
Hutzler; Union Securities Corp. and A. C. Allyn
Co., Inc. (jointly). Bids—To be received up to 11 a.m.
10.

Statement effective March 2.

if Champion Tool & Die Co., Irwin, Pa.
Feb. 27 (letter of
notification) 2,000 shares of common
stock.
Price—At par ($100 per
share). Proceeds—To
repay

bank loans and for expansion. Address—P. O. Box

415, McKeesport, Pa.
•

Underwriter—None.

Cinerama, Inc., New York

(3/10)

Feb. 4 filed $2,000,000 of 4% convertible
debentures due
1958. Price—At 100% of
principal amount. Proceeds—
For

working capital. Underwriter—Gearhart & Otis,
Inc.,
New York; and White &
Co., St. Louis, Mo.
Feb.

letter

1,000

receive fractional shares as
dividend. Underwriter—None.

;

company's

The First
and

construction

result

program.

(Bids

vt (Bids

(Robert

Fall

River

General

Co., Inc., Napa, Calif.
(letter of notification) 6,000 shares of common
stock (par $1).
Price—$11.75 per share. Proceeds—To
.Albert George Streblow.
Underwriter—Dean Witter &
Go., San Francisco, Calif.

Big Basin Oil, Inc., Holyoke, Colo.
(letter of notification) 1,100,000 shares of

Central

stock

Price—$1.16

Electric

one

(The

(par

share of each class

Oak

Grove

Ave.,

Calif. Underwriter—None.

common

stock

cents per share.

North American

(par $1).
Under¬

Byrd Oil Corp., Dallas, Tex.
$1,750,000 of 10-year 5%% convertible sink¬
ing fund mortgage bonds due Nov. 1, 1962, to be offered
tor subscription by common
stockholders at the rate
•of $100 of bonds for each 28 shares of stock
held (for
m
14-day standby). Certain stockholders have waived
their rights. Price—At
par. Proceeds—To repay $1,014,500 of outstanding notes and for
drilling expenses and
working capital.
Underwriters — Dallas Rupe & Son.

Hot

Co.)

underwriting)

repay

Underwriters

(3/31)

common

bank loans and for
To

(par $1).

new

construc¬

—

and

and Dean Witter & Co.

(jointly); Union Securities Corp.
and J, A. Hoglc & Co.
(jointly); Lehman Brothers. Bids
—Tentatively scheduled to be received on March 31.

50,000 shares of 4% cumulative preferred
(par $10C) and 700,000 shares of common stock
(par $5). Price—At par. Proceeds—For working capital.
Business—Production of dairy and poultry feeds. Office
Underwriter—None.

Coronado Copper Mines Corp.
Jan. 23 (letter of notification)
299,970 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
on

page

Blyth

(Bids

(Offer

invited)

16,

Common

invited)

1953
...Common

stockholders—Bids

invited)

Bonds

invited)

April 7,

Kentucky Utilities Co
(Bids

w_,

to be

—Bonds

11:30

New

Orleans

Public

a.m.

Preferred

EST)

Service

(Bids

Inc

Bonds

EST)

noon

1953
Common

(Bids

„

EST)

a.m.

April 21, 1953

Common

Louisiana Power & Light Co

Co.)

-—Preferred

EST*

noon

May 12,
Alabama

Power

1953

Co
(Bids

.-Bonds
11

a.m.

EST)
f

-Common
& Co.)1'

___—Bonds

Texas

Power

Light Co.—
(Bids

June 9,

EST)

Preferred

Gulf

Power

———Preferred

invited)

1953

Co.—

Bonds

(Bids

Co.)

a.m.

EST)

-Bonds
June

invited)

New

York

23,

1953

Telephone Co
(Bids

-Bonds
invited)

18, 1953

Mallory (P. R.) & Co., Inc.—

Preferred

tiLee

Higginson Corp.)

Public Service Electric & Gas Co
(Morgan Stanley & Co.,

-Common

Drexel & Co. and Glore, Forgan & Co.)

March

24, 1953

Light Co
(Bids

Bonds

—

EST)

noon

Bonds & Preferred
11

a.m.

EST)

Corp.
(Blyth

Preferred
&

March

Co., Inc.)

25,

1953

Brockton Edison Co._
(Bids

Independent Plow,
(Offer

—-Bonds
to

New York.

invited)

Class A

Inc

stockholders—Barrett

Herrick

Southern Indiana Gas & Electric Co
(Smith, barney & Co.)

May 19, 1953

Bonds

—

Union Sulphur & Oil Corp.__Debs. & Class A Stk.
V
(Smith, Barney & Co. )
March

Bonds

April 13, 1953

April 15,

Mexico

invited)

Texas Electric Ser. Co

Inc.)

Co.,

Oklahoma—

—Bonds
EST)

noon

invited)

1953

Light Co
(Bids

1953

noon

(Bids

Southern Co.

Brothers)

of New

Co.

1953

April 6, 1953

Equip. Tr. Ctfs.
be

(Allen

Service

31,

Common

Light Co

(Bids

.Common

(Offering to stockholders—no underwriter)

invited)

to be

27, 1953

Merritt-Chapman & Scott Corp

April 14, 1953

12, 1953

(Bids

Public Service Co.

bidders:

Federation

stock

(Bids

Common

Pacific Lighting

stock

determined by competitive
Blyth & Co., Inc.; Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane

Probable

League

filed

11, 1953

(Bids

Power Co.

Proceeds—To

EST)

Lake Superior District Power Co

Georgia Power Co

136,249 shares of

Feb.

Corp.)

Bonds

Shoppes, Inc.————.—
^-(Johnston, Lemon

—Postponed.
Electric

Underwriter—Wachob-Bender Corp., Omaha, Neb.

Cooperative Grange
Exchange, Inc.

March 17, 1953

Dallas Power &

March 2 filed

tal.

Birmingham Lead & Smelting Co; Inc.———Pfd.

Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser &
McDowell, Chicago, 111. Offering
^California

Community Credit Co., Omaha, Neb.
26
(letter of notification) 1,500 shares of 5%%
sinking fund preferred stock, series A. Prie^
—At par ($100 per share). Proceeds—For
working capi¬
Jan.

(Bids

Public

Oct. 22 filed

bidding.

White

The First Boston

noon

March

investment.

stock.

Under¬

cumulative

Florida Power &

Royalties, Inc

Mississippi Power

capital stock

Proceeds—For

investment.

writer—None.

-Common

(Lehman

Proceeds—

Under¬

capital

common

Proceeds—For

(Bids

Notes

Corp.

(B<ds

(par $1).

writer—None.

tion.

and

(Carlson

100,000 shares

market.

3,750,000 shares of

market.

Bonds

Boston

San

-if Bullock Fund, Ltd., New York
filed

filed

California Electric Power Co

EST)

a.m.

Inc.

March

leases and for corporate purposes.
writer—None. To be named by amendment.

Tully &
Corp.)

Toronto, Canada

'To acquire

Feb.

Otis,

(Bids

(C. F.) & Co., San Marino, Calif.
(letter of notification) 1,000 shares of common
(par $10). Price—$74.15 per share. Proceeds—For

Price—Approximately 64.48

Bonds

Central & South West Corp..

'Price—At

First

•

•Sept. 25 filed 1,000,000 shares of

if Commonwealth Investment Co.,

April 1,

Chesapeake & Ohio Ry

Bristol Oils Ltd.,

Underwriters—Kidder, Peabody &
Corp., both of New York.

Boston

Central & South West Corp

Arizona Public Service Co

if Braun

Marino 9,

First

Common

stockholders—no

unit.

Office—1025

The

EST)

a.m.

(Bids

mingham, Ala.

working' capital.

and

Common

Light Co

(Offering

Proceeds—To purchase
Underwriter—Carlson & Co., Bir¬
per

working capital.

Co.

10, 1953

(Kidder, Peabody & Co.

Lead & Smelting Co., Inc.

to be offered in units of

For

Inc.)

Webster Securities

March

land and equipment.

(3/10)

senior notes due June 1,
Price—To be supplied by amendment. Proceeds—

1965.

Debentures

Commercial Credit
Hilo

Co.,

Inc.

(3/16)

Feb.

Maine Power

(Gearhart &

Feb. 9 (letter of
notification) 150,000 shares of preferred
stock (par $1) and 150,000 shares of common

.stock

(Eids

com-

Narragansett Electric Co
(Ala.)

surveying, etc.
Salt Lake City,

March

Webber, Jackson & Curtis; Mitchum,

Cinerama,

Colo.

-of stock.

Baird

March

stock (par five cents).
Price—25 cents per share.
Proceeds—To repay notes, and for
drilling expenses and
new equipment.
Underwriter—E. I. Shelley Co., Den¬

Birmingham

engineering,

California Electric Power Co

1953

March 9, 1953
Electric Light Co

Co.; and Stone

tmon

1 cent)

Telephone Corp

(Paine,

Dec. 8

ver,

$30,000,000

CST)

noon

(Bids

Hirshberg, Inc., both of Atlanta, Ga.

Basalt Rock

Feb.

filed

Equip. Tr. Ctfs.

Lake Superior District Power Co._

if Atlas Finance Co., Inc., Atlanta, Ga.
Feb. 19 (letter of
notification) 20,000 shares of common
stock
(par $5). Price—$15 per share. Proceeds—For
working capital. Underwriters—Clement A. Evans &
Co.,
&

March

Equip. Tr. Ctfs.

Chicago & North Western RR

Boston

Norris

stock

CST)

noon

March

and

20%

for

Continued

March 5, 1953
Chicago & Eastern Illinois RR

Underwriters—•

Georgia.

Inc.

ISSUE

NEW ISSUE CALENDAR

Corp., New York; and Courts & Co.
Robinson-Humphrey Co., Inc., both of Atlanta,

the

common

Rath

held about March
4; rights to
-expire March 25. Price—To be supplied
by amendment.
Proceeds—To repay bank loans issued in connection

with

(par $2.50). Price — At market (approximately
$30.87V2 per share). Proceeds—To stockholders entitled

—Ithaca, N. Y.

notification

new

each

Commercial Credit Co.
Feb.

Price—At

March

REVISED

Office—1106 First Security Bank Bldg.,

Utah. Underwriter—None.

Feb.

(EST)

ADDITIONS

SINCE
ITEMS

if Coloriver Oil Co., Salt Lake City, Utah
Feb. 24 (letter of
notification) 900,000 shares of common
stock. Price—At par (10 cents
per share). Proceeds—To
drill a test well (from sale of
600,000 shares) and to

Bros. &

Atlanta Gas Light Co.
Feb. 11 filed 80,255 shares of common stock
(par $10)
to be offered to common stockholders
at rate of one
.share for

& Co. Inc.; Cof¬

stock

Office—4616

mortgage
Proceeds—To refund

Burr, Inc. and The First Boston Corp.
(jointly);
Blyth & Co. Inc. and Kidder,
Peabody & Co. (jointly);
Merrill Lynch,
Pierce, Fenner & Beane and White, Weld
&

•

reimburse

general

new construction.
determined by competitive bid¬

if Colonial Stores, Inc.

program.

and

bonds, series U, due March 1, 1983.
outstanding short-term notes and for

^Ashtabula Telephone Co.

construction

Under¬

(3/10)

$10,000,000 of first

granted. Proceeds—For working capital and used in
part for property additions and improvements. Under¬
writer—None.

(Ohio)
Feb. 20 (letter of
notification) 10,000 shares of common
stock (par $25).
Price—$29 per share. Proceeds—For

investment.

writer—None.

Feb.

Inc.
599,000 shares of

Registration

if Canadian Fund, Inc., Now York
Feb. 27 filed 1,000,000 shares of
capital stock (par $1).

Underwriter—None.
American Pipeline
Producers,
Jan. 5 (letter of notification)

if INDICATES

Co.,

Boston

Philadelphia

Pittsburgh

San Francisco

Inc.)

Common

Private IVires

all offices

Chicago

Cleveland

The Commercial and Financial Chronicle

(1034)

Continued
To

from

for

and

St., Wilmington,

Underwriter—Charles J. Maggio,

Del.

Inc., New York.
Dallas

Power
filed

(EST)

noon

Light Co. (3/24)
of first mortgage

$9,000,000

March 24.

stock

14,000 shares of common
subscription b,y present stock¬

for

offered

Price—At

Proceeds—For

($10 per share).

par

equipment. Office—2001-23 No. Parkside Avenue,
Chicago 39, 111. Underwriter—None.
new

1, 1983. Proceeds—To redeem $2,000,000 of 3 Vh % bonds and to repay $4,800,000 of bank
loans. Underwriters—To be determined by competitive

Halsey, Stuart & Co. Inc.;
Lehman Brothers, Bear, Stearns & Co. and Salomon
Bros. ,& Hutzler
(jointly); Glore, Forgan & Co.; The
First Boston Corp., Estabrook & Co. and Stone & Web¬
ster Securities Corp. (jointly).
Bids—To be received up
to 11 a.m. (EST) March 9 at 49 Federal Street, Boston

& Co., San Antonio, Tex.
(letter of notification) $100,000 of 5% junior
subordinated debentures, first series, due Feb. 1, 1965.
25

Price—At

(in denominations of $1,000 each).

Pro¬
ceeds—For capital to increase the loan business. Office
—800 Broadway, San Antonio, Texas.
Underwriter—
par

The First Trust Co. of

stock

which includes 22,190 shares being
reoffered to the previous purchasers. Price—25 cents per
share. Proceeds
For expansion of business and for
(par one cent)

—

working capital. Underwriter
Philadelphia, Pa.
First
Feb.

Price—At

Underwriter—None.

Price—At

Lines, Inc., Atlanta, Ga.
with SEC covering
of $10,695,846 of 5^% convertible de¬
bentures
(subordinated) to be issued in exchange for
Chicago & Southern Air Lines, Inc., common stock under
merger plan at rate of $21 of debentures for each C. & S.
share.

issue

Debentures

stock

mon

will

rate

convertible

one

into

each

for

Dec.

Price—$800

1962.

capital.

$1,000 bond.

per

Florida

share).

Opportunity Bulletin, Inc., Miami, Fla.

office and expand the Bulletin.

Proceeds—

Under¬

struction.

Underwriters

common

$12
share). Proceeds—To Virginia Ducommun Ward, the
selling*stockholder. Address—P. O. Box 2117. Terminal
per

Annex, Los Angeles 54, Calif.

if Eastern Tractor Manufacturing Corp.,
Kingston, N. Y. ,v- >j»
Feb. 25 (letter of notification) 748,000 shares
stock

mon

(par five cents).

Price—40 cents

capital.

working

—

determined

due
con¬

com-

netitive bidding.

Inc.;

Fuller

Brush

Co., Hartford, Conn.
Jan. 29 (letter of notification) 3J)00 shares of preferred
stock. Price—At par ($100 per share). Proceeds — For

working capital.

Office—3580 Main St., Hartford, Conn.

General

(approximately

' :y~v;of com¬

per

share.

Underwriter—Hunter

Securities Corp., New York.

convertible preferred

writers

Alloys Co., Boston, Mass.
(letter of notification) 25,000 shares of

common

stock

(no par), of which 15,025 shares are to be issued
exercise of options held by officers of the company
$3 per share and 9.975 shares are to be offered to the

upon

underwriter

(William S. Prescott & Co., Boston, Mass.)
at $2.78 per share and resold by them to key employees
at $3 per share. Office—405 West First. St., Boston, Mass.
Proceeds—For working
•

capital.

General

Telephone Corp. (3/9-10)
Feb. 19 filed 300,000 shares of common stock (par $20).
Price—To be supplied by amendment. Proceeds—To in¬
crease

investments in subsidiaries.

Burnham

Underwriters—Paine,

—

filed

copter.

Price

stock

(par 10 cents). Price—$1

expansion
New York.

per share. Proceeds—For
and working capital. Office — 17 State St,
Underwriter—James T. DeWitt & Co., Inc.,

Washington, D. C.
Edison
Feb.

common

per

(Thomas A.), Inc.

(letter of notification)

3,500 shares of class B

stock

share).

the Board.

(par $3V3). Price—At market (about $16
Proceeds—To Charles Edison, Chairman of
Underwriter—Riter & Co., New York.

Ekco Oil Co.,

Philadelphia, Pa.

Dec. 4

(letter of notification) 99,000 shares of common
stock (par one cent). Price—$3 per share.
Proceeds—
To acquire leases and drill wells.
Underwriter—Hopper,

Soliday & Co., Philadelphia, Pa.

creditors and loans and notes payable, to buy

materials

raw

Moran & Co.,
•

and

for

working capital.

Underwriter—

Newark, N. J.

English Oil Co., Salt Lake City, Utah

gas

properties and interests therein. Price—At par ($1 per
share). Proceeds—For acquisition of additional proper¬
and

leases.

Underwriter—J.

City. Utah.

Offering

—

Hogle &

Expected

Co.,

latter

Salt

part

March.

if Equitable Insurance Co., Puerto Rico
Feb. 24 (letter of notification)
50,000 shares of
stock

of class

offered

A 6%

$1.99

per

share;

cumulative participating

common

100,000

preferred stock

share; 100,000 shares of class B 6% cumulative
non-participating preferred stock at $1 per share; and
tional share of either

common

options
or

buy

one

addi¬

preferred class A stock

at one cent per warrant. Proceeds
For investment.
Address—P. O. Box 4726, San
Juan, Puerto Rico. Under¬
—

writer—Borinquen Associates, Inc.
F. & F. Finance
Feb.

stock.

Co., Inc., Hickory, N. C.

(letter of notification)

Price—$7.50

per

Bids—To be received up to 11 a.m. (EST) on March

at office of Southern

York 5,

N. Y.

Georgia Power Co
Feb.

filed

stock

Services, Inc., 20 Pine St., New*

(no

100,000

par).

(3/24)
shares

Proceeds

—

For

cumulative

preferred

construction

program.

by competitive bidding.
Probable bidders: Blyth & Co.,
Inc.; Lehman Brothers;
Morgan Stanley & Co.; The First Boston Corp.; Union
Securities Corp. and Equitable Securities
Corp. (jointly).
Bids—To

received up to

office

Southern

(EST) on March 24
Services, Inc., 20 Pine St., New
a.m.

N. Y.

York.

•

Grand Bahama

Co., Ltd., Nassau
$1,350,000 20-year 6% first mortgage conver¬
tible debentures due March, 1973, and 1,565,000 shares
of class A stock (par 10 cents). Price—Par for deben¬
tures and $1 per share for stock. Proceeds
For new
Feb. 3 filed

36,998 shares of common
share. Proceeds—For working

construction.

Business

—

Hotel

and

land

development.

Underwriter—Gearhart & Otis, Inc., New York.
Great Lakes
Feb.
stock

Industries, Inc, Chicago, III

(letter of notification) 18,000 shares of common
$1).
Price —$5 per share.
Proceeds —To

(par

Dempsey

Co.,

Chicago,

111.,
Underwriter—Dempsey & Co.
Great Western Uranium

the

selling

stockholder.

Corp.

Feb. 12

(letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—For
acquisitions and. working capital. Office
U. S. Bank
Bldg., Grand Junction, Colo. Underwriter—Israel & Co.,
stock (par 10 cents).

—

New York.

Under¬

Co.

class

and

stock

common

firms

and

payment
Proceeds — For

$5.75 per share.

of prototype

James, L.

I.,

coaxial heli¬

Underwriter-

(par $1)

ferred stock
of

common

Price

and

if Helicopters for Industry, Inc.
Feb. 25 (letter of
notification) 30,000 shares of
stock

com¬

3,000 shares of 8%

common

cumulative

pre¬

(par $10) to be offered in units of 10 shares
and

and

one

preferred

(plus 10 shares

share of preferred of
Westair, Inc.).
Proceeds — To pay debt and for

one

$40 per unit.

—

working capital and expansion. Office—111
Ave., Hempstead, N. Y. Underwriter—None.

Cathedral

if Kilo Electric Light Co., Hilo, Hawaii (3/10)
March 2 filed 25,000 shares of common stock to be
first
offered
rate of

stockholders of record March 10 at
share for each three shares held: then to

common

one new

employees;
public.

unsubscribed

any

Price—At

($20

par

bank loans.

share).

per

incentive

and

ership

plan

•

Shoppes, Inc., Washington, D. C.

Hot

Feb.
of

for

filed

which

stock

corporation and
Underwriter—None.

stock.

229,880 shares of

195,880 shares

account

employees

capital

offered

Proceeds—To

Underwriter—None.

Honolulu Oil Corp.
Feb. 24 filed $l,250,0u0

to be

are

(3/17)J

stock

common

sold

own¬

25;000

(par $1),

publicly for'the

three

selling stockholders, and 34,000 shares
by the company of which 16,000 shares will be offered
to public and 18,000 shares to
employees of the company.
Price—To

be supplied
by amendment.
Proceeds—To
for working capital, etc. Underwriter—John¬
ston, Lemon & Co., Washington, D. C.
company,

★ Hubir.ger Co., Keokuk, la.
Feb. 24 (letter of notification)
11,000 shares of common
(par $2.50).
Price — At market (approximately
$8.62V2 to $9.62V2 per share).
Proceeds —To Roy L.
stock

Krueger, the selling stockholder.
if Incorporated Investors, Boston, Mass.
March 2 filed 2,500,000 shares of capital stock.
At

market.

Proceeds—For Kin vestment.

None.

Price—

Underwriter—
.

•-

if Independent Plow,
Feb. 26
class

Inc., Noedesha, Kan. (3/25)
filed 100,000 shares of
participating convertible
stock (par $5), to be offered for
subscription
and

common

of class A

and/or

common

preferred

stockholders

rate

one

for each

stock

314 shares of preferred
Price
$6.50 per share.

held.

—

balance

RFC

loan
($192,311);
outstanding preferred stock ($86,341); and
for working capital.
Underwriter—Barrett Herrick &
Co., Inc., New York. *
to

repay

redeem

Inspiration

Lead

Co.,

Inc.,

Wallace,

Jan. 26

(letter of notification) 2,000,000
stock.
Price—15 cents per share.

mon

Ida.

shares of

com¬

Proceeds—For

mining expenses. Office—507 Bank St., Wallace, Ida.
Underwriter—Mine Financing, Inc.,
Wallace, Ida.
"
★ Inter-American Electronics Corp., Puerto Rico
Feb. 27

(letter of notification) 938 shares of participat¬
ing preferred stock and 7,900 shares of common stock.
Price—Of preferred, $100 per
share; and of common,
$10 per share. Proceeds—To purchase equipment. Of¬
fice—1073 Ponce de Leon
Avenue, Saturce, Puerto Rico.
Underwriter—None.
•

Interprovincial Pipe Line Co.

(Canada)

Feb. 6 filed 1,439,552 shares of
capital stock (par $5) be¬
ing offered for subscription by stockholder of record
Feb.

the

shares held;

basis

two

rights to expire

new

shares for

each

five

March 13.

(Imperial Oil
Ltd. owns 33.36% and Canadian Gulf Oil Co.
10.01% of
the outstanding
stock.) Price—$18 per share—Canadian.
Proceeds—For

Drilling Co., Inc., Wilmington, Del.
(letter of notification) 300,000 shares of common
stock (par five cents).
Price—$1 per share. Proceeds—
For drilling
expenses.
Office—100 West 10th Street,
Wilmington, Del. Underwriter—Baruch & Co., Inc., New

Feb. 16

—

at $1 per

50,000 purchase warrants

Global Oil &

options, and 2,435,583 shares in exchange for oil and

Lake

Inc.

York 5,

Jan. 5 filed 3,435,583 shares of common stock, of which
750,000 shares are to be offered publicly, 250,000 shares
are to be reserved for officers and
key employees and

ties

Securities Corp. and Equitable Securities Corp.
(jointly); Shields & Co. and Salomon Bros. & Hutzler
(jointly); Morgan Stanley & Co.; Harriman Ripley & Co.

Underwriters—To be determined

if Electriglas Corp., Bergenfield, N. J.
Feb. 27 (letter of notification) 220,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proc&^ds
—To pay

Union

individuals

—

None.

Proceeds—To

Georgia Power Co. (3/24)
Feb. 20 filed $16,000,000 of first mortgage bonds due
April 1, 1983. Proceeds—For construction program. Un¬
derwriters—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Kuhn, Loeb & Co.; Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly); The First Boston Corp.;

construction

Office—St.

& Webster

Econo Products Co., Inc.
Jan. 8 (letter of notification) 300,000 shares of common

350.000

certain

for services.

market.

Securities Corp., New York.

March 20.

directors, officers and employees of the

and

pany

Underwriter—None.

(par $1), to be offered for subscription by stockholders
of record Dec. 22, 1952, on a
pro rata basis; rights to ex¬
pire on Feb. 28, 1953. The offering will include 50,000

Webber, Jackson
& Curtis,
New York and Boston;
Mitchum, Tully & Co., San Francisco, Calif., and Stone

investment.

stock

Co.;

Gyrodyne Co. of America, Inc.
Nov.

if Eaton & Howard Balanced Fund, Boston, Mass.
•March 2 filed 700,000 shares of capital stock. Price—At
Proceeds—For

G. H. Walker
Townsend, Graff & Co., all of New York.

repay

if Florida Power & Light Co. (4/7)
March 2 filed $15,000,000 of first mortgage bonds
1983. Proceeds—To repay bank loans and for new

Feb.

Proceeds—For

Address—P. O. Box 456,
Underwriter—None.

Grove, Miami 33, Fla.

if Ducommun Metals & Supply Co.
Feb. 18 (letter of notification) 4,600 shares of
market

($500 per

par

registered

and notes payable and for working

Price—At

(par $500).

Proceeds—For working capital to equip editorial

Underwriter—None.

$2).

Springfield, Mass.

Pierce, Fenner & Beane; White, Weld & Co. Bids—Ten¬
tatively scheduled to be received up to noon (EST) on
April 7.
"" ;

Office—431 Market St., Camden, N. J.

(par

$10).*

Under¬

(letter of notification) 20 shares of 6% cumula¬

writer—None.

stock

For investment.

—

principal

$35

com¬

10-year 6% debenture bonds dated Dec. 1, 1952 and due
To pay off mortgage

Proceeds

Probable bidders: Halsey, Stuart & Co.
Kuhn, Loeb & Co.; Harriman Ripley & Co., Inc.;
Lehman Brothers; The First Boston Corp.; Merrill Lynch,

Delta

amount of debentures.

if Dickerson Co., Inc., Camden, N. J.
Feb. 26
(letter of notification) $200,000

market.

writer—D. J. St. Germain & Co.,
t

First Securities Corp.,

Springfield Corp., Springfield, Mass.
filed 20,000 shares of capital stock (par

Coconut

Feb. 11 company filed an application

—

(par

engineering and

Securities

Delta Air

proposed

effective March 2.

tive preferred stock

if Delaware Fund, Inc., Camden, N. i.
filed 423,200 shares of' capital stock.
Proceeds—For investment.

bidders:

Statement

Mass.

Feb.' 16

Lincoln,' Neb.

March 2

market.

Probable

bidding.

if Dean
Feb.

due Jan.

bonds

Hydraulics, Inc., Brooklyn, N. Y.
(letter of notification) 1,730 shares of common
$1).
Price—At market.
Proceeds—To re¬

deem

(3/9)

Light Co.

$6,800,000 of first mortgage and collateral

filed

Corp., Philadelphia, Pa.
Jan. 21 (letter of notification) 600,000 shares of common

(letter of notification)

holders.

Fall River Electric

First

Daystrom Manufacturing Co., Chicago, III.
Feb.

•

Jan.

Greer

Feb.
stock

Carolina.

North

trust

bonds due
March
1, 1983.
Proceeds — For construction program.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
■Bros.
&
Hutzler; The
Frist Boston Corp.; Lehman
Brothers; Kidder, Peabody & Co.; Equitable Securities
Corp.; Union Securities Corp.; Harriman Ripley & Co.,
Inc.
Bids—Tentatively scheduled to be received up to
Feb.

First Ave., N. W., Hickory, N. C.
Investment Co., Inc., Charlotte,

Office—347

Underwriter—Southern

leases, for exploration expenses, to repay
working capital. Office—100 West 10th

acquire

loans

capital.

page

Thursday, March 5, 1953

...

and

new

construction.

Offices—Toronto, Ont.,

Edmonton, Alta.

Underwriters
Wood. Gundy &
Co., and McLeod, Young, Weir,
Inc., both of New York
and Toronto.
Statement effective Feb. 25.
—

Ispetrol Corp., New York
Oct.

29 filed

($100

par

crude
oil

oil

and

Israel

49.500

f
common

stock.

Price—At

share). Proceeds—To finance purchase of
enterprises and to purchase crude
products for resale in Israel. Underwriter—

per

for

oil

Israeli

Securities Corp., New York.

Israel

Industrial & Mineral
Development Corp.
Oct. 6 filed 30,000 shares of class A stock.
Price—At

par

($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter
Israel Securities
Corp., New York.
—

Israel Overseas
Corp. of New York
17 filed 16,000 shares of
capital stock par $1 and
$3,400,000 of 20-year debentures to be offered in units
of eight shares of stock and
$1,700 principal amount of
debentures. Price—$2,500 per unit.
Proceeds—For gen¬
eral corporate
purposes.
Underwriter—None.
Feb.

Jefferson Lake Sulphur
Co., New Orleans, La.
16 (letter of
notification) 2,000 shares of common

Feb.

stock

(par $1).

Price—At market.

Proceeds—To Roger

Volume

177

Number 5200

The Commercial and Fi

...

Chronicle

(1035)
J.

Barba,

but

will act

selling

stockholder.

Bennett

Superior District Power Co.

offered

for

the basis of

(3/7)

common

one

.Lake Superior District Power Co. (3/17)
16 filed $2,000,000 first mortgage
bonds, series E,
due March 1, 1983. Proceeds—For construction
program.

effective

determined

small loans.

North

First

held.

Price

property additions.
Ohio.

share.

per

Proceeds

•

—

For

Office—203 W. Ninth Street, Lorain,

150,000

stock

amendment.

shares of

(par

$50).

cumulative

Price—To

Proceeds—To

Canadian).

held;

rate

rights

Underwriter—Merrill
New
r

one

new

for

each

21//2~

Lynch, Pierce,

Fenner

Dak.

—For

Beane,

to be offered

units

100

of stock and

subscription warrants for 40 shares. Price—
Proceeds—For drilling of additional well9
9nd to purchase producing wells.
Underwriter—M. S.
Gerber, Inc., New York. Financing may be revised.

stock

common

(par 2ft

qents).

Price—$2 per share. Proceeds — For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co..
Houston, Tex. Dealer Relations Representative—Georg«
A. Searight, 50 Broadway, New York, N. Y.

Overland Oil, Inc., Denver, Colo.
Dec.

Teleplion'

cents).

WHitehall 3-2181. Offering—Date indefinite.

filed 300,000 shares of common stock
(par 10
Price—20 cents per share. Proceeds—To make

geological survey of land. Business—Oil and gas explor¬

if Merritt-Chapman & Scott Corp. (3/27)
3 filed
121,322 shares of common stock (par
$12.50) to be offered for subscription by common stock¬

ation. Underwriter—None.

.March

holders of record March 27 at rate of
each five shares

held; rights to expire

new

one

if Pacific Lighting Corp. (3/24)
March 2 filed 200,000 shares of cumulative
preferred
stock (no par).
Price—To be supplied by amendment.

share for

April 14. Price
—To be supplied by amendment. Proceeds—For working
capital and general corporate purposes. Underwriter—
None.

■

•

••

■

Proceeds—To repay bank loans and for
Underwriter
Blyth & Co.,

Nov/ 3 filed
stock
10

(par $5) and 113,000 shares of
to be offered in units of

class of stock.

common

cents)

Price—$6 per unit.

one

writer—None.

Proceeds—For work¬

•

."7 -\ '

:•

/7'* ,/■

if Mid-American Research Corp., Wheatland, Pa.
Feb. 27 (letter of notification) 54,888 shares of common
stock (par $1). Price—$4 per share. Proceeds—For re¬
search, developmental work, working capital and to re¬
duce

indebtedness.

Office—Council

Pa.- Underwriter—None.

■

.
.

•

Mid-Gulf Oil & Refining Co.
Nov. 10 (letter of notification) 400,000 shares of common
stock

(par five cents). Price—60 cents per share. Pro¬

acquire additional properties. Office—927-929

Market St.,

Wilmington, Del. Underwriter—W. C. Doehler Co., Jersey City, N. J.
Mississippi Power & Light Co. (3/17)
Feb. 11 filed $12 ^0,000 of first mortgage bonds due 1983.
ob

struction program.

Underwriters—To

be determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc., White, Weld & Co. and Kidder,
Peabody & Co. (jointly); Merrill Lynch, Pierce, Fenner

Pacific

Underwriter —None.
Los

Indoor
a

Office

Advertising Co. (par
wholly-owned subsidiary.

—

995

No.

Mission

Road,

Angeles 33, Calif.

Paley Manufacturing Corp., Brooklyn, N. Y.

•

Shields & Co., New York.

Paradise Valley Oil Co., Reno, Nov.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
subleased land and for other corporate purposes. Un¬

derwriter—None, with sales

to be made

on a

commission

per

share). Of¬

(selling commission is two cents

fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.
139 N. Virginia St., Reno, Nev.

and W. C.

Beane; Union Securities Corp.; The First Boston Corp.
Langley & Co. (jointly). Bids—To be received
up to noon (EST)
On March 17 at Room 2033, No. 2
Rector

rate of

Street, New York, N. Y.

if Monitor Mines, Inc., New York
Feb. 24 (letter of notification) 1,000,000 shares of com¬
mon
stock
(par 10 cents). Price—25 cents per share.
Proceeds—For working capital. Office—55 Liberty St.,
New
L.

York

N. Y. Underwriters—d'Avigdor
H. Rothchild & Co., both of New York.
5,

Co.

and

600 shares of
stock

common

(par $100)

ceeds—For

stock and 2,000 shares of

issued at $120

per

working capital. Address—c/o

common

share.
C.

Pro¬

Starr,
930 Fifth Ave., New York, N. Y. Underwriter—None.

if Mutual Shares Corp., New York
Feb. 20 filed 105,678 shares of common stock. Price—At
market.

Proceeds—For

investment.

one new share for each five shares held. Certain
officers and employees will be entitled to
purchase un¬
subscribed shares. Price—To be supplied

by amendment.

Proceeds

—

For

construction

program.

Underwriter—None.

Underwriter

—

Morgan Stanley & Co. and Coggeshall & Hicks, both of
New York.

Peruvian Oil Concessions Co.,

if Mt. Mansfield Co., New York
Feb. 19 (letter of notification) 600 shares of convertible
preferred stock (par $100) to be issued in exchange for

Price—$5.25

Jan. 16 filed 9,000,000 shares of

Price—$1.10

Inc., Dover, Del.
stock (par $1).

common

share. Proceeds—For general corporate
purposes. Business—Plans to produce and sell petroleum
per

and its products from lands to be held under concession
from the Peruvian Government.
Underwriter—None.

Phillips Packing Co., Inc.
2 (letter of
notification) 3,000 shares of common
stock (no par).
Price—At market (approximately $6
per share).
Proceeds—To Theodore Phillips, the selling
Feb.

stockholder.
more,

Md.

one

new

share.
Underwriter—None.

Underwriter—Alex. Brown & Sons, Balti¬
{

com¬

Price—At

oil

and

gas

Vegas, Nev. Un¬

share for each 6.4 shares held.

Proceeds—For

per

new

equipment.

if Seiberling Rubber Co., Barberton, Ohio
Feb. 19 (letter of notification)
15,420 shares of common
stock (par $1) to be offered in
exchange for 7,710 shares
of

stock
of
Seiberling Rubber Co., Ltd.
the basis of two shares of the Ohio firm

common

(Canada)

for each share of the

Canadian company. Underwriter—

None.

Shirks

Motor Express Corp.

(Del.)
notification) 20,000 shares of 6%

Jan. 8 (letter of
lative preferred

stock

Price—At

cumu¬

($10 per share).
Proceeds—For working capital. Office—Manheim
Pike,
Lancaster, Pa. Underwriter—Alex. Browm & Sons,* Bal¬
timore, Md.
par

if Shopping Bag Food Stores, Los Angeles, Calif.
(letter of notification) 9,371 shares of preferred
stock (par $25) and
9,371 shares of common stock (par
$1) to be offered in units of one share preferred and
Feb. 26

one

—To

common

liquidate

nando

stock.

Price—$32

indebtedness.

Simonds Saw & Steel Co.,
Jan.

share). Proceeds

per

—

unit.
2716

Proceeds
San

Fer¬

Underwriter—None.

Fitchburg, Mass.

(letter of notification)

stockholder.

per

Office

Road, Los Angeles 65, Calif.

1,000 shares of

common

(approximately $40.50
Simonds, the selling

To Daniel

Underwriter—Townsend, Dabney & Tyson

Boston, Mass.
if Southern Indiana Gas & Electric Co.
filed

be offered

record

six shares
be

(3/25)
114,167 shares of common stock (no par *
subscription by common stockholder;

for

March 25

at rate

for

new

share for

each

April 10. Price—Tc
Proceeds—To repay ban

supplied by amendment.

loans and

one

held; rights to expire
construction.

Underwriter

—

Smith

Barney & Co., New York.
Star Air

Freight Lines, Inc., N. Y.

Feb. 4 (letter of
notification) 149,000 shares of common
stock (par $1) in units of 20 shares.
Price—$20 per unil
Proceeds—To purchase Quaker

ital.

working capital. Underwriter—G. iv.

★ Peninsular Telephone Co., Tampa, Fla.
Feb. 27 filed 73,241 shares of common stock
(no par) to
be offered for subscription
by common stockholders at

holders at rate of

to purchase

basis

issued to promoters.

Proceeds—To acquire

if SeaPak Corp., St. Simons Island, Ga.
Feb. 25 (letter of
notification) 38,933 shares of common
stock (par $1) to be offered for
subscription by stock¬

For expansion and

Underwriter—None.

Office—223 Fremont Street, Las

Jan. 16 (letter of notification) 99,000 shares of common
stock (par 25 cents). Price—$3 per share. Proceeds—

„

Proceeds—For

stock

$25) in order to make latter

Ave.,: Wheatland,

•

ceeds—To

common

share).

per

March 3

if Pacific Outdoor Advertising Co.,
Los Angeles, Calif.
Feb. 26 (letter of notification) 8,660 shares of
preferred
stock (par $10)
to be exchanged share-for-share for

ing capital. Business—Purchase, processing, refining and
sale of Fluorspar; Underwriter — To be supplied by
amendment.

^Pacific Paper Materials Co., Longview, Wash.
Feb. 18 (letter of notification) 260,000 shares of common

Longview, Wash. Under¬

each

Ave., Seattle 5, Wash.

stock (no par). Price—At market

stock. Price—At par ($1 per share). Proceeds—To retire
debt. Address—P. O. Box 719,

stock (pa?

Inc., New York and San

—

Price—$15 per share..Proceeds
advertising program. Office—6518

derwriter—None.

construction.

Francisco.

7-,

Mex-American Minerals Corp., Granite City, III.
113,000 shares of 6% cumulative preferred

new

$10).

and

stock to be sold

($1

leases.

Nyal Co., Detroit, Mich.
Dec. 28 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.25
per share. Proceeds—
To repay loans and for
working capital. Underwriter—
Gearhart & Otis, Inc., New York.

McCarthy (Glenn), Inc.

Ravenna

par

per

stock (par

research

if Rocky Mountain Lease & Development Co.
Feb. 27 (letter of
notification) 280,000 shares of
mon

Under¬

Exploration, Ltd., Toronto, Canada

are

Underwriter—Tellier &

Ravenna Metal Products
Corp., Seattle, Wash.
30 (letter of
notification) 20,000 shares of class A

common

(3/12-19)

York,

June 12 filed 10,000,000 shares of

Proceeds—For working capital.
Co., New York.

Jan.

552 per unit.

expire March-12. :Price — $23
Proceeds—To increase capital and surplus.

share.

per

Morris

—

Northland Oils Ltd., Canada
21 filed 1,000,000 shares of
capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
shares, of which the stock and subscription warrants for

*00,000 shares

the amount of $9,306,000 for the

if Radar-Electronics, Inc., New York
March 3 (letter of
notification) 5,996,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.

Nov.

Maryland Casualty Co., Baltimore, Md.
Feb. 5 filed 442,098 shares of common stock (par $1) be¬
ing offered for subscription by common stockholders of;
Feb.

Underwriter

Royalties, Inc.

Price—$1

Under¬

Underwriters—Morgan Stanley & Co., Drexel
Glore, Forgan & Co. (jointly).

& Co. and

—For exploration costs.

record

program.

share (U. S. funds). Proceeds
Underwriters—Aetna Securities
Corp. and L. D. Friedman & Co., Inc., both of New York.

Corp., New York.

North American

costs.

1953, of certain pub¬
licly held prior lien mortgage bonds, and for construction

Feb. 4 filed 1,375,000 shares of
capital stock (par 25 cents-

convertible

supplied

loans and for
Underwriter—Lee Higginson

general corporate purposes.

drilling expenses.
Co., New York.

North Pacific

bank

repay

for

working capital.
Office—Bismarck, N.
writer—-Lehman Brothers, New York.

York

filed

preferred

and

construction

New York.

payment at maturity on March 1,

16 filed 325,000 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—To re¬
tire outstanding preferred stock and bank
loans and for

(P. R.) & Co., Inc., Indianapolis and
(3/18)

New

Feb.

15.4*

Underwriter—None.

if Mallory
Eeb.

share for each

£0.,

if Public Service Electric & Gas Co. (3/18)
Feb. 25 filed 750,000 shares of common
stock (no par).
Price—To
be
supplied by amendment. Proceeds—To

Newton-Phoenix Oil Corp., Houston and New York
2,500,000 shares of common stock (par one
per share. Proceeds—To purchase '

Cohon &

Underwriter—None.

Proceeds—To finance

writer—Allen &

cent). Price—30 cents
land

new

one

$20

—

March

ment.

Feb. 3 filed

Ave.,

Telephone Co., Lorain, Ohio
(letter of notification) 5,000 shares of common
(no par) to be offered for subscription by com¬

stockholders at rate of

mon

(par $1).

ir Public Service Co. of New Mexico (3/17)
Feb. 25 filed 30,000 shares of cumulative
preferred stock,
series A (par $100). Pl-ice—To be
supplied by amend¬

derwriters—Lehman Brothers, New York.

Lorain
stock

of common stock

stock

Phoenix, Ariz. Underwriter—None.

Dec.

To be deter¬

cumulative preferred
(par $100) being offered for subscription
by hold¬
ers of 6%
preferred stock of record March 3, on a share
for share basis; rights to
expire March 23. Price—$100
per share. Proceeds—For
repayment of bank loans. Un¬

Office—243

filed $3,500,000 in participations under
plan of¬
fered to eligible employees of
company and 50,000 shares

New England Power Co.
Feb. 4 filed 80,140 shares of
$4.60

if Little Loans Corp., Phoenix, Ariz.
Feb. 24 (letter of notification) $300,000 of debenture
bonds. Price—At par (in multiples of $100). Proceeds—
in

—

•

competitive bid¬
ding.
Probable
bidders: Halsey, Stuart & Co. Gne.;
Robert W. Baird & Co., Inc.
Bids—Bids are expected to
be opened on March 17.

invest

Underwriters

reimburse treasury in

Feb.

construction.

by competitive bidding. Probable bidders: Halsey,
Inc.; Kuhn, Loeb & Co. and Glore, Forgan
& Co. (jointly); Salomon Bros. &
Hutzler; Kidder, Peabody & Co. and Stone & Webster Securities
CorpV*(jointly); Lehman Brothers and Goldman, Sachs & Co.
(joint¬
ly); Union Securities Corp.; The First Boston
Corp.;
White, Weld & Co.; Blyth & Co., Inc., and Harriman
Ripley & Co. Inc. (jointly). Bids—To be received up to
noon (EST) on March 10 at
company's office. Statement

Underwriters—To

new

Stuart & Co.

share for each

new

Pittsburgh Consolidation Coal Co.
Feb.

mined

(par $20)
stockholders

held; rights to expire on March 23. Sub¬
scription warrants are expected to be mailed on March
7. Price—To be supplied by amendment.
Proceeds—For
construction program. Underwriter—Robert W. Baird &
Co., Inc., Milwaukee, Wis.
I

(3/10)
10 filed $10,000,000 of first
mortgage bonds, series
due March 1, 1983. Proceeds—To repay bank loans

and for

stock

common

subscription by

of record Feb. 25
nine

Narragansett Electric Co.

Feb.

16' filed 29,761 shares of

Feb.

•

Underwriter—None,
Chicago,

Co., New York and

agent.

Lake

the

James

City Airways, Inc. (Pa.)

operating certificates and for working cap¬
Office—2 East 33rd St., New York. Underwriter—
None.

★ Sweet Memories Corp. (N. Y.)
March 2 (letter of
notification) 5,000 shares of
stock.

Price

—

working capital.

par

($1

Office—40

per

share).

West 57th

common

Proceeds- ~"^r

St., New York.

Business—To operate mail-order
candy business.
writer—None.

Under¬

if Television & Radio Broadcasting Corp.
Feb. 26 (letter of notification)
299,900 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For operating capital.
Office—c/o Morton M. Goldfine, 82 Devonshire Street, Boston 9, Mass. Underwriter
—Jackson & Co.,

Inc., Boston, Mass.

Texas Oil

Exploration Co., Ft. Worth, Tex.
Dec. 5 (letter of notification)
1,200,000 shares of com¬
mon stock (par 10
cents). Price—25 cents per share. Pro
ceeds—To drill oil and gas wells and for
acquisition 01
properties. Underwriter—Peter W. Spiess Co., New York

Texas Western Oil Co.,

Houston, Tex.

Nov. 12 (letter of notification) 100,000 shares of commo?
stock (par 10 cents). Price—50 cents
per share. Proceed?
—For working capital. Office—1 Main
Underwriter

—

St., Houston, Tei
Scott, Khoury & Co., Inc., New York

Offering—Expected in

week

two.

Thomas & Skinner Steel Products
Co., Inc.,

Indianapolis, Ind.
Feb. 16 (letter of notification) $250,000 of 5first
mortgage convertible sinking fund bonds. Price—At par
Continued

page

The Commercial and Financial Chronicle

(1036)

Continued
and accrued

denominations of $1,000

(in

interest

Feb.

reported company may be in the market

was

this

spring with a financing program to raise about $40,000,000.
A l-for-10 offering of common stock (about
818,658 shares) is said to be under study. Proceeds—For
expansion program. Underwriters — The First Boston
Corp. and A. E. Ames & Co., Ltd., acted as dealer-man¬
agers in October, 1951, stock offering to stockholders.

and

$500 each). Proceeds — To reduce bank loans and for
"working capital.
Underwriter — City Securities Corp.,
Indianapolis, Ind.

Houston, Tex. (3/17)

Union Sulphur & Oil Corp.,

12 it

Probable

Ltd.

Aluminium

from page 43

$^000,000 of sinking fund debentures due
shares of class A non-voting stock
{par $1), the latter to be sold for account of certain sell¬
ing stockholders. Price—To be supplied' by amendment.
Proceeds—From sale of debentures, to pay notes and for
working capital, etc.
Underwriter—Smith, Barney &
Co., New York.

Feb. 25 filed

1978

and

Arkansas

101,000

Proceeds—For

Webster Secu¬
Corp.; White,
Weld & Co., Blyth & Co. Inc., Equitable Securities Corp.
and
Central
Republic Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp.
(jointly).

Baker-Raulang Co.
12 it was reported company late in 1953 may sell

about

Address—c/o Phillips

Proceeds—For working capital.

stock.

Feb. 24
stock

Corpl, Salt Lake City, Utah

Price—$3 per share. Proceeds—to ac¬
quire lands and for corporate purposes. Office—1102
Nfewhouse Bldg., Salt Lake City, Utah. Underwriter—
W. D. Nebeker & Co., Salt Lake City, Utah.
(par $1).

mortgage bonds. Proceeds—To repay bank loans.
Underwriters—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Harriman Ripley & Co. Inc.; White.
Weld & Co., Kidder, Peabody & Co. and Lee Higginson
Corp. (jointly); Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Lehman Brothers; Union Se¬
curities Corp. Offering—Expected in April.

A" Vanadium-Alloys Steel Co.
25 (letter of notification)

3,600 shares of capital
Price—$27.50
per share. Proceeds—For working capital.
Office—Latrobe, Pa. Underwriter—None.
par) to be offered to employees.

it Brockton Edison Co.
Feb. 20 it

Victoreen Instrument Co.

•^Walker Laboratories Inc., Mt. Vernon, N. Y.
Feb. 25 (letter of notification) 4,600 shares of Class B
common stock (par 25 cents) and 1,500 shares of Class
A common stock (par SI). Price—At market (estimated
at

$4.50

share).

per

Proceeds

California
Jan.

West Coast Pipe Line Co.,

Dallas, Tex.

Witter

Dean

sale of

$16,550,000

involve

stock.

Jan.

common

Price—$40 per unit.

Proceeds—To

pay

Address—

"Westchester County Airport; P. O. Box 109, White Plains,
TLY. Underwriter—None.

Tlr Westinghouse Electric Corp.
Feb. 27 filed 200,000 shares of common stock
to

offered

under

''Employee

Stock

(par $12.50)
Plan" to Em¬

ployees of corporation and six subsidiaries, and 498,735
shares of

common

stock to be offered under "Restricted

Stock Option Plan" to certain officers and other

tive employees of

Stockholders
on

common

and

portion of which will

will

authorizing

stock.

vote

Underwriters

Estabrook

Co.

the

annual

additional 1,000,000

—

Kidder, Pea¬
offering in.

handled

execu¬

corporation and its subsidiaries.

after distribution by New

England Public Service Co. 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.,
(jointly); Harriman Ripley

Inc. and Bear, Stearns & Co.
& Co., Inc.
•

Central

& South West

Corp. (4/1)
applied to SEC for authority to issue
and sell 606,084 additional shares of its common stock
(par $5), to be offered for subscription by stockholders
Feb.

of record

about April

14 shares held.
of

common

in ratio of

one

share for each

Proceeds—To purchase additional shares

stock of its four

principal subsidiaries, who
in turn will use the funds to pay for
property additions
and improvements.
Underwriters — To be determined
by
competitive
bidding.
Probable
bidders:
Merrill
Lynch, Pierce, Fenner & Beane; Lehman Brothers and

Chesapeake & Ohio Ry. (3/12)
Bids

(5/12)

reported company plans issuance and sale
$18,000,000 first mortgage bonds due 1983. Proceeds—
program.

Underwriters—To be deter¬

mined by competitive bidding.

Probable bidders:

Stuart & Co. Inc.; Blyth & Co., Inc., and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel & Co. (jointly); Lehman Brothers;
First

Boston

Corp.; Harriman Ripley & Co., Inc.

Registration—Planned for

expected at 11

a.m.

(EST)

•

Allied Chemical & Dye
Feb. 4 company announced

April
on

10.

Bids—Tentatively

May 12.

Corp.

that company plans to sell
of $200,000,000 principal amount

publicly not in excess
of long-term sinking fund debentures through an un¬
derwriting group. Proceeds—To be used for expansion,
^working capital and other corporate purposes
Under¬

writer—Morgan Stanley & Co., New York.
Due some time in April.

expected to be received by the company up to
(EST) on March 12 for the purchase from it of
$7,950,000 equipment trust certificates. Probable bidders:

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Salo¬
mon

Hal-

cey,

The

are

noon

was

For construction

Probable bidders:

Halsey, Stuart & Co. Inc.;

Salomon Bros. & Hutzler.
•

Cinerama

Jan. 9 it
of

Productions

Corp.

reported company plans issuance and sale
500,000 shares of common stock. Price—Ex¬

was

about

pected to

be around $10 per share. Underwriter—Hayden, Stone & Co., New York. Offering—Postponed.
Clevite Corp.
Feb.

announced

was

plans public sale of

company

stock

common

(following approval of

2-for-l split on April 6).

Underwriters—F. Eberstadt &
Co., Inc., New York; Prescott & Co., Cleveland, O.
Columbia Gas System,

Inc., N. Y.
plans to issue and sell
(probably sufficient to raise between
$20,000,000 and $25,000,000) and additional debentures
early in the Spring of 1953. Proceeds—To repay bank
Oct. 10 it

was

common

stock

loans and
be

announced company

for

construction

determined

program.

Underwriters—To

competitive

bidding. Probable bid¬
ders:
For
stock,
Merrill
Lynch,
Pierce,
Fenner
& Beane, White, Weld & Co. and R. W.
Pressprich
& Co. (jointly); Morgan Stanley & Co. For
debenture!,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Consolidated Natural Gas Co.
Feb. 6 it

was reported company is
considering debt fi¬
nancing, probably a maximum of $35,000,000 to $40,000,If competitive, probable bidders may include: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley & Co. and The
First Boston Corp. (jointly); White, Weld & Co. ancl
Paine, Webber, Jackson & Curtis (jointly). Offering—
Tentatively expected in late spring.

Culver Corp., Chicago,
Nov.

offer

III.
that

announced

was

stockholders

23,640 additional shares of

company

record
common

proposes

total,

Jan.

stock

on a

share-for-

share basis. Price—At par ($2 per share). Proceeds—For
investment. Office—105 West Madison Street, Chicago,.
111.

Underwriter—None.

Delaware Power & Light Co.
Feb. 24 it was announced stockholders

on April 21 will
approving a proposal to increase the authorized
preferred stock from 200,000 shares to 300,000 shares
(par $100). Probable bidders for any new preferred
stock financing may include Blyth & Co., Inc. and The
First Boston Corp. (jointly); White, Weld & Co. and
Shields & Co. (jointly); Lehman Brothers; W. C. Langley & Co. and Union Securities Corp. (jointly): Morgan*
Stanley & Co. Stuart Cooper, President, said it is pos¬

vote

Offering—
..

Bros. & Hutzler.

sible that

common

stock may be sold later in the year-

Detroit Edison Co.
Feb. 9 it was announced company plans to issue an un¬
specified amount of convertible debentures, which mayfirst be offered for subscription by stockholders.
Pro¬
ceeds—To
costs.

retire

bank

loans

Meeting—Stockholders

and
on

debentures.

new

meet

construction

April 14 will vote

Underwriter—None.

•

Eastern Utilities Associates

Feb. 20 it
000

was

announced company

plans sale of $7,000,-

collateral

trust mortgage bonds due 1973.
Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook

Co. and Stone & Webster Securities

Corp. (jointly); The
Corp.; White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly). Bids—Tentatively expected,
in April.
First Boston

(3/5)

Bids will be received by the
company at 332 So. Michi¬
gan Avenue, Chicago 4, 111., up to noon
(CST) on March
5 for the

purchase from it of $2,100,000 equipment trust
certificates, series J, to be dated March 1, 1953 and to
mature in 30 equal semiannual installments from
Sept. 1,
to

March

Fitchburg Gas & Electric Co.
Jan.

was

announced

company

plans to issue and*

sell 23,698 additional shares of capital stock
(par $25) to
its stockholders on a l-for-5

basis, subject to their

proval

ap¬

Feb. 25. Proceeds—To repay short-term bor¬

rowings.
Follansbee Steel Corp.
Dec.

16, M. A. Follansbee, President, said the companyplans additional equity financing, totaling about $4,500,000.
This may be done through a rights
offering t<*
stockholders. Proceeds—Together with funds from pro¬
posed $29,500,000 RFC loan, would be used for expansions
program. Underwriters—May include Cohu & Co., NewYork. Offering—Expected in February.
General Public Utilities Corp.
11 it was reported company is
and sale this summer of additional

Feb.

Chicago & Eastern Illinois RR.

1953

company

(jointly); Blyth & Co., Inc., Smith,
Barney & Co. and Harriman Ripley & Co., Inc. (jointly).

Prospective Offerings
Jan. 28 it

March 5

Lazard Freres & Co.

Alabama Power Co.

equal annual instalments from April 1, 1954, to 1968,

inclusive.

authorizing the

it was reported company plans sale later this
of, $10,000,000 common stock (in addition to $10,000,000 of first and general mortgage bonds, see above)

share of preferred of Helicopters for

working capital and expansion.

(CST)

noon

the purchase from it of $8,400,000 equipment trust
certificates to be dated April 1* 1953, and to mature in

year

(par $10) to be offered in units of 10 shares
one share of preferred
(plus 10 shares

Industry, Inc.).

for

debt securities convertible into

Central Maine Power Co.

and

debt and for

securities,
or

November, 1949, of $6,000,000 2% convertible debentures.

(par $1) and 3,000 shares of 8% cumulative pre¬

one

& Co.

body

Offering—Expected in

Tfr Westair, Inc.
Feb. 25 (letter of notification) 30,000 shares of

and

new

meeting March 24

«ents).
—Together with other funds, to be used to build pipe¬
line. Underwriters—White, Weld & Co. and Union Se¬

common

(jointly); Kidder, Peabody & Co.;
Bids—Tentatively

stock

common

Co., Dallas, Tex.

curities Corp., both of New York.
-the Spring of 1953.

Co.

it Central Hudson Gas & Electric Corp.
March 3 it was announced that some portion of the com¬
pany's financing program for 1953-1954 will involve the

stock (par 50
Price—To be supplied by amendment. Proceeds

common

(4/6)

Blyth & Co., Inc.; Lehman Brothers.
scheduled to be received on April 6.

Ttfov. 20 filed 1,125,000 shares of common

«f

Power Co,

announced

company proposes the sale
$8,000,000 of first mortgage bonds. Proceeds—To re¬
bank loans and for new construction. Underwriters
—To be determined by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Merrill Lynch, Pierce, Fenner & Beane and

15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and
one share of stock.
Price — To be supplied by amend¬
ment. Proceeds—From sale of units and 1,125,000 addi¬
tional shares of common stock and private sale of $55,000,000 first mortgage bonds, to be used to build a 1,030
mile crude oil pipeline. Underwriters — White, Weld &
Co. and Union Securities Corp., both of New York. Of¬
fering—Expected in the Spring of 1953.

stcok

plans to issue and sell

pay

TSov. 20 filed $29,000,000 12-year 6% debentures due Dec.

ferred stock

Electric

was

(3/5)

Underwriter—None.

West Coast Pipe Line

(3/25)

company

March 25.

To Theodore Blanchard,

—

reported

was

St., Chicago 6, 111.,

son

000.

$4,100,000 first mortgage collateral trust bonds, due 1983.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Harriman
Ripley & Co. Inc.; Coffin & Burr, Inc.; The First Boston
Corp.; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); Estabrook & Co. and Stone & Webster Securi¬
ties
Corp. (jointly).
Bids — Tentatively expected on

15,000 shares of common
stock (par $1). Price—At market (approximately $5.25
per share). Proceeds—To E. A. Benson and R. F. Shima,
the two selling stockholders. Underwriter—Barrett Herjrick & Co., Inc., New York.
(letter of notification)

^President.

;

first

Feb.

Feb. 12

it Blackstone Valley Gas & Electric Co.
Feb. 20 it was reported company plans sale of $5,800,000

(letter of notification) 80,000 shares of common

stock (no

Under¬

writers—May be* Riter & Co.; Hemphill, Noyes & Co.,
both of New York.

^ Ute Royalty

preferred

convertible

$1,000,000

$800,000

common

One Wall St., New York, N. Y. UnderwriterMortimer B. Burnside & Co., Inc., New York.
& Avery,

Chicago & North Western Ry.

Bids will be received by the company at 400 West Madi¬

200,000 shares of

Jan.

Price—$2.29 per unit.

capital.

working

issue and sell,

may

company

Co. Inc.; Lehman Brothers and Stone &
rities Corp. (jointly); The First Boston

notification) 100,000 shares of common
stock (par 10 cents) and warrants to purchase 250,000
additional shares of common stock (each warrant giving
bolder the deferred right after 13 months to purchase
prior to Dec. 31, 1957, one share of stock upon payment
of $3.0614 per share), to be offered in units of one

bidders: Halsey, Stuart & Co., Inc.; Kidder,
Peabody & Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane.

Light Co.

announced

competitive bidding. Probable bidders: Halsey, Stuart &

Feb. 17 (letter of

share and 2lk warrants.

Power &

was

probably in June, 1953, about $18,000,000 of first mort¬
gage bonds.
Proceeds—To repay bank loans and foi
new
construction. Underwriters—To be determined by

United States Air Conditioning Corp.

common

Feb.

Thursday, March 5, 1953

...

common

stockholders

on a

planning issuancecommon

stock

l-for-15 basis.

Pierce, Fenner & Beane acted

Merrill, Lynclv
clearing agent in last

stock offer.
Gulf Power Co.

(6/9)

Jan. 28 it

was reported
company plans issuance and sale$7,000,000 of first mortgage bonds due 1983. Proceeds*

1968, inclusive.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; R.
W. Pressprich & Co.;
Kidder, Peabody & Co.

—For

Chicago Great Western Ry.
Jan. 9 William N.
Deramus, 3rd, President, stated that
the company is planning issuance and sale of
$6,000,000

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.: The First
Boston Corp.; Kidder,
Peabody & Co. and White. Weld
& Co. (jointly); Merrill
Lynch, Pierce, Fenner & Beane,.

collateral

trust bonds to be secured
by $9,000,000 first
mortgage bonds held in the treasury. Proceeds—To pay
$3,000,000 of notes and for working capital. Under-

off

writers

determined

by competitive bidding

construction

termined

program.

competitive

Underwriters—To

bidding.

Probable

de¬

bidders;

Salomon

Bros. & Hutzler and Drexel & Co.
(jointly);
Union Securities Corp.; Equitable Securities
Corp.: Leh¬
man Brothers.
Registration—Planned for

:.:.T^ntatively<ijgxpectedw|,|Jl.l_a.m.,..CEST>

May 8. Bids—
on-June 9. j J;

Number 5200

Volume 177

Utilities

Gulf States
Jan. 16, it was

The Commercial and Financial Chronicle

Co.

(1037)

thers; The First

announced company is planning to sell

Boston Corp.; Union Securities Corp.
Equitable Securities Corp. (jointly).

and

Permian Basin Pipeline Co.,
Chicago,

•

Feb. 26 it

Feb.

sell to

announced

was

tional

stock

common

(par $1)

share for each eight shares held.

proval

March 31 of

plans to offer and

company

stockholders about 142,000 shares of addi¬

common

split

a basis of one
This will follow

of each present

share into two shares of $1 par value.

common

writers—Lehman Brothers

and

new

ap¬

no par

Under¬

Goldman, Sachs & Co.,

both of New York.

Kentucky Utilities Co.
Jan.

•

;

reported

(4/7)

84,000 shares of common stock (no par>»
subject to satisfactory market conditions. Previous stock
offering was made in August, 1951, to stockholders, with¬
out underwriting.

Jc Public Service Co. of Indiana, Inc.
March

tional shares of

Jan. 7 it

and

near

Lehman

company

sell

•

Brothers

(jointly); Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Union Securities
Corp. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Blyth & Co., Inc.; Equitable Securities Corp.
Bdis—Tentatively expected to be received on April 7.

^ Kerr-McGee Oil Industries

•

some

form

'Lehman

new

is said to be con¬
financing (about $10,000,000). May

convertible

debentures.

stock
of

Underwriter—

Brothers, New York.

15, it

announced

•

company

bidding.

Probable

15 it

was

Oklahoma
it

Natural

was

Shields

writers

Probable

new

will

Stone

competitive

con¬

Salomon Bros. & Hutzler (jointly); White,
Co.; The First Boston Corp.; Kidder, Peabody
and Drexel & Co. (jointly); Harriman
Ripley &
Co., Inc. and Union Securities Corp. (jointly).
and

Middle South

Utilities, Inc.
reported company may later this year issue
and sell about $15,000,000 of additional common stock.
Feb. 3 it

was

Proceeds—To repay bank loans, etc. Underwriters—To
be determined by competitive
bidding. Probable bidders:

Blyth

Co.

filed

Georgia Natural Gas Co.
was
announced a FPC Presiding Examiner
decision, subject to Commission review, author¬
it

cost

11 it

was

on.

Underwriters—To

be determined

by competitive
Blyth & Co., Inc.; Equitable
and Union Securities Corp. (jointly);;

Probable bidders:

Boston

;

Gas Co.

FPC authorized company to construct 326 miles

pipeline from Gwinville, Miss., to the Gulf of Mexico,

announced

cast

that

$32,518,500.

the

On Sept. 15 it had

beep

expects to sell additional
bonds during the first six months of 1953 in the amount
then

company

permissible under its mortgage indenture, and to

provide for other permanent financing by the sale of
additional first mortgage bonds or other securities In
such amounts

may

be appropriate at the time. Prob¬

able bidders for bonds:

Proceeds—For construction

Halsey, Stuart & Co. Inc.; Kuhn,
Co.; The First Boston Corp., Blyth & Co. Inc.
and Kidder, Peabody & Co. (jointly). Any stock financ¬
ing may be via stockholders.
Loeb

program.

Inc.; Kuhn, Loeb & Co.; Kidder, Peabody Co.; The First
Corp.; Equitable Securities Corp.

Boston

^ Southwestern Gas & Electric Co.
Feb. 25 it was reported company, later

Pennsylvania Power & Light Co.

issue

and

this

year

may

shares of cumulative prefeped
stock (par $100).
Underwriters—May be determined
by competitive bidding. Probable bidders: White, Weld

Jan.

23, Charles E. Oakes, President, announced that
new
financing this year will require the sale of from
$20,000,000 to $25,000,000 of first mortgage bonds, with
total financing for the four-year period running about

sell

50,000

& Co. and Kidder, Peabody & Co. (jointly); W. C. Lang¬
ley & Co.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp-

$65,000,000.
include:

Corp.
Corp.; Lehman Brothers; Morgan Stanley
& Co., Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly). Bids—Tentatively expected
to be received at 11 a.m. (EST) on April 15. Registration

s.<r '

If sold competitively, probable bidders may
Halsey, Stuart & Co. Inc.; The First Boston

Kidder, Peabody & Co. and Merrill
Corp.; Equitable Securities Corp.; White, Weld & Co.;
.jbynch, Pierce, Fenner & Beane (jointly); Lehman Bro¬ Smith* Barney &• Co.' ■».
- —

;

reported company plans offering of about>

was

'estimated

reported company plans to issue and sell
$12,500,000 first mortgage bonds due 1983

like amount later

share for each

Nov. 3

Underwriters—White, Weld & Co. and Kidder,
Peabody & Co., both of New York, and Dominion Secu¬

in June about

miles of pipeline
estimated cost

(4/15)

Securities

First

(jointly);1 Lehman Brothers.

Inc.;

Feb.

bidding.

Pennsylvania Electric Co.

it was announced a FPC Presiding Examiner
decision, subject to Commission review, author¬
izing company to construct approximately 160 miles of
pipeline at an estimated cost of $5,945,000. Securitfe?
may be sold privately through competitive sale, r
;
*;/ :

iaries.

Underwriters—To be determined by compett-,
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Co.

17 shares held; rights to expire ofa
Price—Expected to be named by company on
April 13. Proceeds—To increase investments in subsid¬

project is $186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
line bonds and preferred and common

Corp. Ltd., Toronto, Canada.

new

ic South Carolina Natural Gas Co.
Feb.

filed

new

the

rities

one

May 7.

Corp.;

capital

basis of

Finance Co., Los Angeles, Calif. % v v
A. Appleby, President, announced plans for
offering an issue of non-convertible preferred stock (no
par). Proceeds — For working capital and expansionUnderwriter—The First Boston Corp.

Jan.. 28 it

overall

Feb. 9, Paul

Southern Natural

Estimated

1,000,000 additional shares of common stock (par $5) far
stockholders of record about April 15 on a basis of one

Pipeline Corp.

Northwest.

per

Proceeds—For

—Planned for March 13.

Pacific

Feb.

& Co.

16.

company to construct 335
in Alabama, Georgia and Florida at
;of $8,141,518.

Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Weld

cents

izing the

and

reported company plans to issue and sell
in May about $8,000,000 of first mortgage bonds due 1983.
was

each

Basin in New Maxico and Colorado to market areas inv

the

proposed offering to minority
20 of 1,449,374 additional

Feb.

South

bidding.

Securities

Webster
.

Pacific Northwest

stocks.

Metropolitan Edison Co.

for

Southern Co.

that the directors were

record

Jan. 29 company received FPC permission to file a third
substitute application proposing to construct a 1,466mile transmission line extending from the San Juan'

Boston

Feb. 11 it

determined

made

Co.

Shields & Co.

•mortgage pipe

19.

construction.

offering of a sufficient number of
common stock
(par $7.50) to raise $4,would follow proposed stock split of

bidders:

^Louisiana Power & Light Co. (4/21)
Feb. ; 25 it was reported company may issue and sell
60,000 shares of cumulative preferred stock (par $100).
Proceeds—To refund present outstanding preferred stock.
Underwriters—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and
Equitable Secu¬
rities Corp. (jointly); W. C. Langley & Co. and The First

Registration—Scheduled for March

the basis

Proceeds—

000,000.
This
present authorized 1,639,884 shares of $15 par value into
3,279,768 shares of $7.50 par value. Proceeds would be
used for the company's construction program.
Under¬

Corp.-(jointly); Kidder, Peabody & Co. and Mer¬
rill Lynch, Pierce, Fenner & Beane
(jointly); Union Se¬
curities Corp. Bids—Expected at noon (EST) on
April 21.

announced

sidering authorizing
shares

Gas

first refunding mortgage-

Seaboard

company may

new

announced

was

been

to stockholders, the company plans to issue
$40,000,000 of new debentures. Proceeds—To re¬
pay bank loans and for construction program.
Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders; Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
The First Boston
Corp. and Kidder, Peabody & Co.
,(jointly).

in mid-year

& Co. (jointly); Salomon Bros. & Hutzler; W.
Langley & Co., The First Boston Corp., and Glore,
Forgan & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co.
(jointly); Harri¬
man
Ripley & Co., Inc.; Equitable Securities Corp.

for

and

Airlines, Inc.

18 it

-share

the

stock

Feb.

issue and sell
about $10,000,000 of first mortgage bonds
Underwriters—To be determined by competitive bidding
Probable bidders: Halsey, Stuart & Co. Inc,; Kuhn, Loeb
& Co., Lehman Brothers and A. C. Allyn & Co., Inc.
(jointly).; Blyth & Co., Inc.; White, Weld & Co. and

and

plans issuance

held, with rights to expire on
working capital, etc. Under¬
writer—None, but Fiduciary Management, Inc., owner
of 8,956,240 shares, about 84% of outstanding Resort
stock) was to buy any unsubscribed shares..

27, H. H. Siert, Treasurer, announced that following

mon

bidders:

announced

loans

Gas Co.

company

Underwriters—To be determined by competi¬

Resort

March

Offering—Expected in May.

announced

was

shares of capital stock (par 10 cents) has been delayed
because of technical reasons. The offering was to have

and sell

Louisiana Power & Light Co.
Dec.

•

Feb.

Northern Natural Gas Co.

Feb.

Halsey, Stuart & Co
Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); W' C. Langley & Co.: Smith. Barney & Co. ./

shorl-term

repay

tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First
Boston Corp.

the proposed offering in May of 548,100 shores of com¬

ley & Co. (3) For bonds, to be determined by competi¬
tive

informed

share for each five shares held.

new

Underwriter—None.

has established a
bank credit in the amount of $40,300,000 extending to
Dec. 1, 1953, to be refipanced by the issuance of new
securities. Underwriters—(1) For common stock, prob¬
ably Blyth & Coff Tnc. and The First Boston Corp.
(jointly). (2) For preferred stock, may be W. C. Lang¬
was

has

company

(3/17)

Proceeds—To repay bank loans and for new con¬

struction.

plans to issue and
$23,000,000 of riew securities in the

announced

bonds.

Natural Gas Co.

was

stockholders

(par $10) to its common stockholders

one

Long Island Lighting Co.
iDec.

Public Service Electric &

sale in June of $50,000,000 of

Nebraska State Railway Commission that it proposes to
make an offering of 548,100 additional shares of common

Feb. 24 it was reported that company

sidering

•

Feb.

(in addition to 80,000 shares of cumulative
stock recently offered). Proceeds—For new

Northern

Public Service Co. of Oklahoma

Co., Inc., New

construction.

Feb.

in May or'
cumulative

•

future

preferred

plans

' $6,000,000 of first mortgage bonds, series D, due March ?„
.1983, and to issue and sell to its parent, Central and
South West Corp., $100,000 additional shares of common
'
stock (par $10) for the sum of $1,000,000. Underwriter
—For bonds to be determined by competitive bidding• I
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
I Bros. &
Hutzler; White, Weld & Co. and Shields & Ck*.
(jointly); Glore, Forgan & Co.; Harriman Ripley & Gq.,
Inc.; The First Boston Corp.; Kuhn, Loeb & Co. and
•
Union Securities. Corp. (jointly). Proceeds—For prop¬
erty additions and improvements.
Bids — Tentatively
expected to be received on or about March 17#

announced that company

additional

company

Feb. 25 company sought SEC authority to issue and sell

Indiana Public Service Co.

was

announced

was

struction program. Underwriter—Blyth &
York and San Francisco.

may

Northern

preferred stock (par $25), subject to approval of an; fatcrease in authorized capitalization.
Proceeds—For con¬

stock (par $100).

common

June to issue and sell 600,000 shares of new

York Telephone

issue and sell
$10,000,000 of first mortgage bonds. Underwriters—To
be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.
was

announced company contemplates to issue

was

and sell about

Co. (6/23)
Feb. 26 company applied to New York P. S. Commission
for permission to issue and sell $35,000,000 of refunding
mortgage bonds, series G. Proceeds—To repay bank loans
and for construction program. Underwriters—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
Tentatively scheduled to be received on June 23. Stock
Offering—Company also plans to issue and sell to Amer¬
ican Telephone & Telegraph Co., its parent, 700,000 addi¬

Co., Inc.

stock; Stone & Webster Secu¬

•

Jewel Tea

$40,269,000.

ic Pittsburgh Coke & Chemical Co.

New

J?FC

system at
Probable underwriters

rities Corp.; and Glore, Forgan & Co., both of New York.
Of the stock of this company, 51% is now owned
by
Northern Natural Gas Co.

•

estimated cost of

for convertible notes and

III.

Feb. 4 company filed an amended application with
for authority to construct a 163-mile pipeline

$6,000,000 in common stock in June and a certain amount
V
Monongahela Power Co.
•
of first mortgage bonds later in the year. Proceeds—For
Dec. 11 it was announced company plans issuance and
construction program, expected to cost between $26,000,sale near the middle of 1953 of $10,000,000 first mortgage
000 and $28,000,000 this year. The exact amount of the '
bonds. Underwriters—To be determined by competitive
bond offering has not yet been determined.
Under¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
writers—For common stock to be determined by compet¬
W. C. Langley & Co. and the First Boston Corp. (joint¬
itive bidding. Probable bidders: Merrill Lynch, Pierce,
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
Fenner & Beane and Lehman Brothers (jointly); Stone
White, Weld & Co. (jointly); Glore, Forgan & Co.; Leh& Webster Securities Corp.; Carl M. Loeb, Rhoades & Co.
man
Brothers; Equitable Securities Corp.; Union Se¬
curities Corp. and Salomon Bros.• & Hutzler
Helicopter Air Service, Inc., Chicago, III.
(jointly);
Merrill Lynch, Pierce, Fenner & Beane; Harriman Rip¬
Feb. 9 it was reported company has applied to the CAB
for a certificate of convenience covering service from
ley & Co., Inc.
Detroit to Cleveland, and also in Chicago, where the
New Jersey Power & Light Co.
company is now operating a mail pick-up service in sub¬
Feb. 11 it was announced company plans issue and sale
urban towns. Underwriter—May be Cruttenden & Co.,
of about $5,500,000 first mortgage bonds due 1983. Un¬
Chicago, HI.
derwriters—To be determined by competitive bidding.
High Voltage Engineering Co., Cambridge, Mass.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Feb. 18 it was reported company plans early registration
Bros.
& Hutzler; Union
Securities Corp. and White
of $800,000 4%-6% convertible subordinate debentures
Weld & Co. (jointly); The First Boston Corp. and Kid¬
due 1967 and 20,000 shares of common stock to be offered
der, Peabody & Co. (jointly); Carl M. Loeb, Rhoades &
in units of a $1,000 debenture and 25 shares of common
Co.; Equitable Securities Corp.; Kuhn, Loeb & Co.,
stock.
Price—$1,000 per unit. Business—Company was
Lehman Brothers and Goldman, Sachs & Co. (jointly);
organized in 1947 to design, develop and manufacture
Merrill Lynch, Pierce, Fenner. •& Beane. ; Offering—
X-ray machines and other equipment. Underwriter—
Probably in May or June.
,-";p >: ■'••• --1 ■ / / •
•
Paine, Webber* Jackson & Curtis, Boston and New York.
New Orleans Public Service Inc. (4/14)
i Jersey Central Power & Light Co.
Dee. 15 it' was reported company plans to sell about
.Feb. 11 it was reported company plans to issue and sell <
$6,000,000 of Ifirst mortgage bonds ..vdue 1983. Pro"$8,500,000 of first mortgage bonds due 1983. Underwrit¬
ceeds—For new construction. Underwriters—To be deers—To be determined by competitive bidding. Probable
termined by competitive bidding.
Probable bidders:
: bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. - Halsey, Stuart & Co. Inc.; Lehman Brothers; Kidder,
and Shields & Co. (jointly); Equitable Securities Corp.;
Peabody & Co. and Stone & Webster Securities Corp.
The First Boston Corp.; Salomon Bros & Hutzler; Glore,
(jointly); Equitable Securities Corp.; Union Securities
/Forgan & Co.; Kidder, Peabody & Co.; Harriman Ripley
Corp. I, Bids — Tentatively scheduled to be received
& Co., Inc. Offering—Probably in April, 1953.
up to noon (EST) on April 14.

•

Continued

■

page

•

46.,

The Commercial and Financial Chronicle

(1038)

Continued

from

Southwestern

•

page

States

Telephone Co.
Feb. 18 it was reported early registration is expected of
an issue of
about 60,000 shares of convertible preferred
stock (par $25;.
Underwriter-—Central Republic Co.,
^ Inc., Chicago, 111.
•

Texas Electric

Feb. 26 it

$7,000,000

Service Co.

(4/13)

reported company plans to issue and sell

was

first

bonds

mortgage

1983

due

100,000

and

shares of preferred stock (par $100). Proceeds—For new
construction. Underwriters—To be determined by com¬

petitive bidding.
& Beane

(jointly); Kuhn, Loeb & Co.; Union Securities
Corp.; Harriman Ripley & Co. Inc.; The First Boston
Corp.; Glore, Forgan & Co. (2) For bonds, Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co., Lehman Brothers and
Blyth & Co., Inc. (jointly); Salomon Bros. & Hutzler;
Union Securities Corp.; The First Boston Corp.; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane

(jointly); Hemphill, Noyes & Co. and Drexel &
Co. (jointly). Bids — Expected to be received up to
11:30 a.m. (EST) on April 13. Registration—Tentatively
scheduled for March 5.

Feb. 24 it

was

sell bonds

and

announced

that

stock

common

stock

and

for

(5/19)
sell about $5,Proceeds—For new

may

company

bonds.

mortgage

Underwriters—To be determined

19.

Texas Power & Light
Feb.

sale

26
of

Co.

determined

•

stock. Pro¬
Underwriter—

competitive

announced

was

stock

common

new

Corp.,

Kidder,

plans to sell addi¬
sufficient to raise about

company

(no par)

Proceeds—To increase in¬

money.

vestments

and

mined

competitive bidding. Probable bidders: The
Corp., Blyth & Co., Inc., First Southwest

additional shares not sub¬
scribed for by other stockholders or their
assignees. Pro¬
ceeds would be used for expansion
program.
any

First

reported company may issue and sell in

was

debentures.

Proceeds—For

Underwriters—For

subsidiaries.

Underwriters—To

deter¬

Boston

construction

1953

For

none.

program.

debentures, to be
Probable bidders:

by competitive bidding.
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co., White,
Weld & Co. and Equitable Securities Corp. (jointly);

Corp., Harriman Ripley & Co., Inc. and
Co. (jointly).
1

Goldman, Sachs &

vote

announced stockholders

was

increasing authorized

common

March 25 will

stock from 1,900,-

000 shares

to 2,500,000 shares and on granting directors
right to issue all or part of increased stock without prior

offering to

stockholders; also

additional shares for issue
ible

31/4%

reserving part of the

upon

conversion of convertr

debentures due

May 1, 1976. UnderwriterMay be Paine, Webber, Jackson & Curtis, New York and
Boston.

Washington Water Power Co.
Dec.

3 it was reported company
may issue and sell In
June, 1953, $10,000,000 of first mortgage bonds and be¬
tween $14,000,000 and $18,000,000 of debentures. If com¬

petitive, bidders

Co., Rauscher, Pierce & Co., Inc. and Dallas Union Trust
Co. (jointly); Union Securities Corp.; Lehman Brothers
and Bear, Stearns & Co. (jointly); Kidder, Peabody &

Union

Co. and Merrill Lynch,

Boston

Pierce, Fenner & Beane (jointly);

stock,

determined

★ Walworth Co.

Texas Utilities Co.

Feb.

mon

June about $20,000,000 of common stock to com¬
stockholders on a l-for-15 basis and $30,000,000 of

Feb. 20 it

improvements.

Securities

Union

bidders:

cumulative preferred

bidding. Probable
Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly);
White, Weld & Co.; The First Boston Corp.; Kuhn, Loeb
& Co., Lehman Brothers and Salomon Bros. & Hutzler
(jointly). Bids—Expected on May 19.
May

May

and

$7,000,000 of

ceeds—For additions

United Gas Corp.
Feb.

The First Boston

(5/19)

reported company is planning issueiand

was

Goldman, Sachs & Co. and Harriman Ripley & Co., Inc.
(jointly). Bids — Tentatively scheduled to be received
early June.

by com¬

petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co., Blyth & Co., Inc., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); The First Boston Corp.; Union Secu¬
rities Corp.; Hemphill, Noyes & Co. and Drexel & Co.
(jointly); White, Weld & Co.; Lehman Brothers; Salo¬
mon
Bros. & Hutzler. Bids—Tentatively expected May

and

25%, respectively.
It is anticipated that Peoples Gas
Light & Coke Co. will subscribe for about 67% of the
common

first

$15,000,000

company will issue
in the ratio of 75%

Light Co.

reported

was

construction.

tional

tAt Texas Illinois Natural Gas Pipeline Co.

000,000

Probable bidders:

(1) For stock, Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner

Texas Power &

Feb.

Thursday, March 5, 1953

...

include: Halsey, Stuart & Co. Inc.;
Brothers (jointly);

may

Securities Corp. and Lehman

Blyth & Co., Inc., Smith, Barney & Co. and White, Weld
Co. (jointly); W. C. Langley & Co. and The First
Corp. (jointly)."*

<r. f

Continued from first page

securities

when

they

are

initially floated,

also to create markets in them thereafter

INCREDIBLE—BUT TRUE!
of both

This miracle

well

were

was

wrought because our invest¬
banking and brokerage business was per¬

mitted to evolve in

natural way

and

thus

was

ideally suited to
Profits

our progressive economy.
mark-ups that it was the custom

in the trade for dealers to take

of the

were

portant it is that

free

essential to maintain the

d&ys of the '30s when

"in the
think

saddle"

endowed with much

were

these lads did

boys
Capitol Hill who didn't
were

long and tedious

sense

vision;

something about it, not by the

process

of Constitutional amend¬

furter

legislation with the
lawyers belonging to the Felix Frank¬
school of thought that subverted the Con¬

stitution.

A Welfare State

architects of
*

The State

was

in government was to
and socialistic
it

were

the

projected by these
A

all that

and

NEW

order

with

went

the

day.

shouldn't have said NEW, because these doctrines
the

were

ones

the

liberties, made for
the very

Old

World

planned

that

curtailed

and

economy,

our

tyranny,

standard of living and a
They wanted government
part of government by men.

Deal

architects

social order
our

should

was

first

to start with

capital markets.

thing these New
building another

legislation affecting

and the

regulatory bodies born thereof—the

curities

and

the

Exchange Commission

National

Association

(SEC)

Securities

Se¬

that

our

can

determine

for

fails to meet

let

conduct

We do

the part
process,
&

were

+• i

•*

«r

and

brokers

even

to tell

ing

transaction

order from

compelling

trades¬
fountain
cost him before mak¬

customer the price

customer;

sale.

Wfiat

constitutional, but who is going to spend
the money to find out?

Tpe

state.

pqn, or what have you,

doing a purely intrastate
ordinarily be subject only
own

accepting

It would have been like

This may not

the dealer reaction to this talk?

was

Commission

around

hardly passed the word
what they had in mind before

With companies in all lines of endeavor mak¬

both

ing

plenty, all of it making it obvious that such a
ruie would be unworkable and if enforced

ever new

the

would

SEC

have

and

the

Wallace

disastrous

Fulton

effect of

heard

forcing

the great mass of over-the-counter firms out

too.

of/business.

mean

anything but?

How could

E>id the SEC stop talking about it after that?

Anything but. They knew all they had to do
|fas whisper that such a rule was in con-'

Exchange Commission

(SEC) and the National Association of Secu¬

fernplation

rities Dealers

qealers turn pale. Now they had a weapon

and

mark-up
tion in

(NASD) have compelled dealers

accept their arbitrary and

to what constitutes

profit instead of letting competi¬
free market decide this
question as

to make both ends meet?

why
field

of any

biggest

less radical proposals they ad¬

Wasn't the forcing down of mark-ups

you see more

and

concerns

an ex¬

I|;bertainly
leim

was and created a financial probfor both the SEC and the NASD. This

wis

particularly true of the small dealers

going out of business, being ab¬
sorbed by others or just
confining their sales
to exempt securities or mutual funds shares.

located in small towns in
every

I hate to think what the final, toll will be after

hibitive

our

the

pensive proposition?

Is this making it difficult for investment firms

even

vanced with respect to reducing mark-ups.

That's

in order to make

their arsenal which would make for
accept¬

ance

fair

formerly.

compelled every dealer to reveal
price or, in other words, the

wholesale

though they

fallacious notions

would have

man

dealers

they elected

came
up with talk about promulgat¬
bid-and-ask disclosure rule. Such a rule

all

it be otherwise?

this

dealer-brokers in securities play in this
their job being not only to sell the

ing

Commission

Well the Securities and

legislation meets
the tests we
spoke of at the outset,
a
hypothetical interview with a

remembering that a free flow of
capital into trade and industry is an ingredient
that is essential to a
high level of business ac¬
tivity and employment and futher remembering

The SEC

before

them¬

dealer in securities.

What did they do then?

profit he expected to make

Anything but.

selves the extent to which this
or

Q
A

apply to all those using the mails. This new
gimmick brought under the jurisdiction of the'

What do you

and

"unconscionable"

readers

working out of the SEC station, were
proclaiming that something had
to be done to
get mark-ups down. They were
still too high,
according to their preconceived

the

Inc. (NASD).
So

man

Dealers,

late

Yes, because this Act stipulates it is intended

ness,

Hence the Securities Acts

the

still loud in

peaks in sales volume and profits
in recent years, I suppose investment bankers
and brokers have been doing a
thriving busi¬

state.

natural that the

was

the incubators

lower

possible slave

by law and

were

'30s and early '40s, the SEC
through its Executive Director,
Wallace Fulton, who is tantamount to a
police¬

Come

and the NASD

notions,

Constitution.

They knew these elements

Then what?

to call them.

for all dealers and brokers?
Suppose you just did business within the
borders of your own state, would you still

con¬

and

you say

bodies

mission

Why do

regulatory

locked askance at those transactions where
mark-ups of more than 20% were involved,
then 15%, then 10%. •

to it that the investment

invariably does result in
such registrations.

these

Well at first the SEC and the NASD in

Exchange Act of 1934 for all
dealers and brokers to register with and sub¬
ject themselves to the jurisdiction of the SEC.
Non-compliance with the edicts of the Com¬
could

did

abolish trade custom with respect to

ducting their examinations of broker-dealers

Yes, it is mandatory under the provisions of

to the laws of their

forefathers hoped they were
relegating to the rubbish heap when drafting the
ones

methods

mark-ups and profits?
A

business and would

were

What
use

dealer-broker registered with the
Securities and Exchange Commission?

have to

prevail and regimentation

taxation

was

alien form of
government.
to be all powerful. Paternalism

Are you

the revocation of

ment, but by framing new
aid

the Securities

forefathers, when drafting the Consti¬

our

tution,

we see

Having refreshed our memories in this regard,
us
get on with our interview.

had

stamp Congress, there

conceived of in the first

let

rubber

were

business thrives.

business* health of those in the investment field.
Back in the early
a

relief from this destructive un-American sys¬
tem of regulation in the meanwhile.

desiring to reconvert his securities
readily do so.

can

place to make such reconversion possible as an
inducement to get people to put at the disposal
of productive industry money not being
currently
utilized, thereby making savings an asset and not
a
problem. You can thus appreciate how im¬

stimulating effects of inflation have sub¬
as they will in time, if we are not given

sided,

the result

were

workings of competitive forces in

market and these

investor

Stocks and bonds

big and small business alike

served.

ment

into cash

the

but
that

country.

Forcing

under the

new

them

order of

state in the

knuckle

down

things involved pro¬
costs, the examination of their books,

Volume 177

Number 5?00

The Commercial and Financial Chronicle

...

(1039)
the

interrogation of their customers, and other
investigating media and snares of entrap¬
As

ment.

result

SEC

the

signed to prevent fraudulent, deceptive or
manipulative practices or fictitious quota¬

realized that it

tions

would have to be

asking Congress for larger
appropriations, and the NASD recognized the
fact that it would be compelled to increase its
assessments against
its members for dues.
Apparently an alternative was considered.
Q

Result, fewer
regulate, hence less cost. As simple
as
that.
To implement this
objective the
NASD adopted a minimum
capital rule which,
if enforced, would have resulted in
expelling
all

death

This

thought

akin

had

pronouncing

them.

majority

Association
i

was

sentence

vote

members

affirmatively for

proposed rule to be adopted?

That is true.

I should think that

A; But

They

•

Fulton

were

• ■

set

minimum capital
He thus

oper¬

What else did he do to insure its adoption?

sign his

to his ballot.

name

it wasn't

member

the

Yes, this did the trick and the
firmative votes

cast to

were

necesary

It is

No.

rule

today?

Before the

•

time

came

•

SEC

No.

biisi-

from their competitors who are less
fortunately situated financially. It is to'fhe
credit of most of the
large firms that they
have frowned on this policy. While
they{$iecognized that the comparison of their lairge
capital with that of smaller firms might.|emporarily help their business, in the long-run
it wouid work to their detriment to advocate
ness

but the

are

wealthy.
on

No, they cooked
rule and asked

tion

with

Section

the

15C2

proposal.
of the

Act

1934

expressly called for rules which were~"de¬

shall observe

a high standard of com¬
just and equitable princi¬
ples of trade," and used this as its authority

ness,

mercial honor and

for adopting the instant
philosophy. Accord¬
ing to a poll conducted by The Commercial
and Financial Chronicle, 85 % of the members
opposed the promulgation of the philosophy
and it

was

stituted

to such

ing

felt

rule.

right down the line that it con¬
In fact, their ire was aroused

extent the SEC had to hold

Since

of the

some

far

you

solation

when

the

merrily

But what

con¬

SEC
on

permits the
its way enforc¬

I understand that the form letters announcing
5%
philosophy and ones explanatory
thereof went out over the name of the Chair¬

man

of the Board of Governors.

Do you

think

he drafted those letters?
A

You

questionnaire that

Why do

was sent out to all members asking them for
particulars which would reflect the gross
mark-ups they had taken on 50 consecutive
principal transactions during the previous

The

that

the

Yes.

5% had been taken.
is

ing its edict?

undoubtedly played an
the formulation of that

I understand the NASD 5% figure was
as

rule

mem¬

"interpretation" and not a rule
no
presumption of a viola¬
solely on the basis that a spread in

NASD to continue

SEC commissioners and members of the

as an

tion arises
excess

can

staff

not

In the decision handed down, the SEC charac¬

mean

really an arm of the SEC.
abridge any rule the
compel it to adopt any it sees

Commission

was

bership for vote, and this is just what it did.

that the change
in trade custom was
Did

mem¬

undoubtedly had a hand
in the formation of the
philosophy, it was natPs
ural to expect that the Commission
would,
when being asked to pass upon what was con¬
sidered largely its own creature, uphold the
and did not have to be submitted to the

Yes. The NASD is

commissioners and

bers of the SEC staff

ago

studied.

hear¬

the subject.

What happened?

result

ar¬

questionnaires that

can

sure

you say

he didn't draft any

of them.

that?

Because
yers

nobody, but nobody, except the law¬
connected with the SEC and NASD and

people like Fulton, could draft such letters,
concoct such

six months.
A

none.

a vague rule that
"A member, in the conduct of his busi-

states:

this
apply to the NASD's 5% philosophy, too?

rived

connec¬

Yes, but the Association has

philosophy.

They claimed that

Securities

and

Commission's

and'suggestions for alternative proposals to {bring
mark-ups down still more. They already

minute

important part

knew what the reaction would be in

say.

yardstick impresses me as being a
rule and you told me that the Association
could adopt a rule only after majority
ap¬
proval by its membership.
\

but did state that

fit.

proposed bid-and-ask
on

Absolutely

You

NASD has

for comments

The 5%

terized it

The

mark-ups?

No.

NASD in its contention that it

wrought by the SEC

the little fellow, I'd

The

said

average: per¬

telling me!

Maloney Act, an amendment to the
Exchange Act of 1934, specifically
provided that a self-policing association like
the NASD may adopt such a rule.

the

yardstick for the tremendous increase in the
cost of doing business since 1934?

Con¬

included

just quoted?

you

Was any allowance made in applying the 5%

in other

tantamount to law

business

violation of the Sherman Anti-

deliberate

destructive fo all

After this setback, did they let trade custom

prevail
A

policies that

5%., 1%8% or more was necesary in
instances to make the lower ones pos¬

You're

policing activities of the Asso¬
are

nec¬

even

he engage

can

nor

survey

Yes.

Securities

away

condone

Association.

broker,

this

29% of the trans¬

Pretty tough

Trust Act?

provision

this information to get

use

the
or

that

affirmative

dealer

fact

case

he is concerned.

rule and

any

ciation, which
as

Isn't that

Some firms

non-member

requiring annual filing of financial reports by
dealer-brokers, the SEC has issued ai;?yule
making it mandatory to file such reports.

the

Hence

the Asso¬

you can see,

stipluated dealers had found it

centages

rule that forbids

lucrative forms of business open to members.
If he does belong he subjects himself to all

bylaws, the

However, although the

ignored

Were the mark-ups of big firms doing a vol¬
ume

The

dealers

the recommended course."

sible.

voluntary

come

is in
only informal

be that

giving discounts (tantamount
wholesale prices in other lines of business)

and stock issues

become

how

mark-up

warrant

to go in for mark-ups of more than
5%. While a large percent of the business
could be done on a 2 to 5% basis, it could

your¬

Commission.
a

Isolated transac¬

essary

member from

the rules and

for it

however, claims to be

compelled, because of an aroused
public opinion, to hold public hearings on the

abrogate it.

edicts

actions

sub¬

may

5% yardstick.

ciation

though
he be doing a purely intrastate business, who
doesn't belong can't get discounts or whole¬
sale prices from underwriters of new bond

af¬

was

Securities Acts have

the

you

They can't. The NASD has

effective under the Association's

had

the

sequently,

provide for the

•

1934

self

adoption of the rule.
:Q

dealer-broker with the

are

affirmatively.

Act

districts) and had them call up members
that had not mailed in ballots
urging them
Did it work?

the

5%,

spread

showed that in the

resign if its rules and policing activities
are
haying such a disastrous effect on their
financial health? '
1

vote

pro¬

5%.

association and if this is so,

secret ballot,* and when he found

and to

cedure

What did come?

become

the

inquiry or a precautionary letter; but where
practice is established, formal complaint pro¬

the
was

where

excess

Se¬

don't

In other words,

the secretaries of different districts (there

minute ago such a rule

come.

NASD,

Association

enough affirmative ballots were not being
cast during the
days that were allotted for
voting on the proposed rule, he contacted

to do

York

You mentioned before that under the Securi¬
ties

to stave it off.

grapevine propaganda machine in
spread this kind of talk.

each

ship to the current market.

now

ation to

made

New

abolishing trade custom with respect to
mark-ups, their spokesmen, to make for ac¬
ceptance of their policies, kept harping on the
need for curbing
"fringe dealers." First a
"fringe"'dealer was one that took more than
a
20% mark-up, then 15%, then 10% and

lot of prominent dealers and

adoption of

The

suspicion, are claimed to owe an
explanation and to be subject to trial if their
mark-ups -exceed 5%.
During the entire
period when these agencies were deliberately

necessary

pelled to act where a member sells securities
at a price which bears no reasonable relation¬

Why, the so-called 5% yardstick philosophy.
This was in 1943 and, of
course, was designed
to change trade custom still more and force
mark-ups still lower. Under this yardstick
ject

.played them for suckers by leading them to
believe the promulgation of a bid-and-ask
disclosure rule by the SEC was around the
and the

terms.

dealers who sell securities

Meaning what?

was

paragraph

posed simply to make for acceptance of what

Weapon

new

Before the proposed rule was submitted to a
vote of the NASD
membership, Fulton made

corner

uncertain

1934, when the phi¬
first promulgated, contained
reading: "In the final analysis,

was

the Business Conduct Committee must be im¬

tions,

You said
to

The letter that went out to Business Conduct

some

rule

was

utilizing—the threat of imposing

NASD explain what significance
figures should have for all members?

Committees in October

rule.

curity Dealers Association suggested that
alternative a ceiling of 10% be placed
markups.

the rounds of

did promulgate such

never

3% and 71%

over

the

losophy

come.

bid-and-ask disclosure rule.•>';

gested?

iiv the SEC's arsenal that both the SEC and

thy name!"

Did

spread of not
5%.

over

these

Well, if the SEC and Fulton already knew

Did the comments received really condemn
the proposal and were alternative rules
sug¬

-?■

you're forgetting about that

sins

majority of the members, realizing that capital and integrity are
not synonymous, would have defeated this
requirement..

and

what

the
the

markets"

15C2,

To make for acceptance of what was to

Section

non-complying dealers out of the^Asso-

' ciation.

"Oh,

proposed
rule would be, why did
they do this?

over-the-counter

it.

at not

What the reaction and effect of the

Exterminate the little dealers!
dealers to

the

was

have been committed in

What alternative?

this

fected at

scheme,

or interpret the results
done.
Do the Governors of the Association get paid?
a

of the survey as was

were

returned,

according to the Association, showed that
40% of the transactions reported were ef¬

Q
A

They

are

all dealers and

serve

without com-

Continued

page

(1040)

Tljie Commercial and Financial Clu onicle

Continued

depth of the depression in July, 1932, just
before the SEC came into being:

from page 47

INCREDIBLE—BUT TRUE!
pensation and are all unwitting puppets of
Fulton even though he may lead them to be¬
lieve he is subservient to them. All members

r
■<Tm

Does Fulton receive

Oh, yes—he gets $40,000 a year plus expenses,

salary?

2,285

2,320

11,389

think he gets $40,000
Q

million, thus making

They

spent.

Not

and the NASD in

philosophy apply to

new

se¬

directly.

Sooner

may

later

you

What

derwriting commissions or discounts as a
percentage of gross proceeds in the case of

Well, that's

happens if a dealer is found to be taking
than 5% on transactions?

new

bit involved. Why not let me

first

tell you about the next
taken in the overall pattern of

custom and

mark-ups.

Okay, what

was

The NASD then

last

the

Dealers

all

salesmen,
handle

their

contain the cost
the discount

Securities

customers,

selves

(b)

Provide that the

act of

registration
constitutes an agreement to abide by and
comply with all of the provisions, conditions and by-laws of the NASD.
Make registrants subject to the .disciplinary machinery now set up by the

(d)

NASD.

mere

With

the

of these amendments,;non¬
the part of the individual with the

Association's edicts

mark-ups or in other direc¬
deprive him of the privilege of earn¬
ing his bread and butter and to take care of his
family by engaging in the securities business.
Did

membership vote affirmatively

these that

firm vote in favor of rules like

seem

obviously obnoxious?

Well, Mr. Fulton

started

the

old

Yes.

these

salesmen

and

not

But why?
When

firms

that

a note accompanied each ballot stating
unsigned ballots would be counted.

that

Do
'

A
•

they discipline salesmen

and

I would

Let

and

not

Not that I know of.

recently in Association bulletins

firm

cannot

as,

obvious

law, of

his

securities

•

•/

just take the time to point out two

$4.1

billion. :T£ you deduct this
$10.5 billion figure, you get
$6.4 billion which is the figure that should

be contrasted with $10.1
;

billion for 1929 to

determine whether the amount of securities
was up or down.
So again,
is the SEC regulating or destroying
the investment
banking business?

I ask you,

security

What is the other difference you had in mind?

The other fundamental difference in the

if,

and when he desires to reconvert his

se¬

smaller

whereas in 1929

case

of issues

be maintained

While the

underwriter

Why do

Well, if business is bad with

•'

agency.

incentive

small

find other
secu¬

original

increasing?

the

gross

issues

true

for

wish

Let

means

corporation,

be suspended on its outstand¬

ever

how

matter

date

curbing

possible in

bad

face

expenses

other concerns) and

be 10%,
to make it

business is

letting workers

suggestion that
How¬

while certain other elements in the

nomic
on

wher¬

period of business adversity.

part of this change was their doings.
ever,

picture undoubtedly have

this trend, an

bankruptcy. - This
(less business for

The SEC lads will scoff at the

where the
As

that?

say

can

future

some

may

sell.

dividends

securities
them

profit

cases

you

are
putting themselves in a position where
-they have to continue paying interest on these

of the

part of the dealer to

buyers in those

purchasers

was

ing stock until things improve. On the other
hand, when money is raised through the sale
of debt securities as in 1952, corporations

15% or 20% and is adequate
profitable for him to sell them initially, the
5% philosophy edict and the SEC's arbitrary
policy of holding mark-ups down eliminates

reverse

dealers in the over-the-counter market.

explain.

the exact

69% of all offerings con¬
sisted of common and preferred stock issues.
J This was a much healthier situation.

corporations of the country?
must

com¬

position of the financing for the two years
is that practically all of the 1952
financing
took the form of bonds, notes and debentures,

time goes on,

thereafter,

A market

the

rities business

for

this is true under the doctrine

Is the number of firms engaged in the

publicly offered

What happens in the

escape the consequences of the
their employees. As a matter of

course,

example.

since in that year

firms

that

implications would be unfavorable

SEC quoted for 1952 includes
private place¬

curities into cash.

Fulton has made it clear

even

spell out

differences of fundamental importance. One
is the fact that the $10.5 billion
figure the

this will be¬

say

*
issues

new

market

actions

now?

For

assumption is the investor will find there is

salesmen

by indirectly controlling their
compensation. Another thing, in my opinion,
that enters into the
way the vote went was

Q
A

•:>

big corporations; are
floated, provision is usually made for their
being listed on the New York Stock Exchange
after they have been sold. In such
cases, the

grapevine

their

an SEC) and point out
of the financing in the
considerably from 1952,
true.
But they do not stress
what those differences were

to the SEC.

mark-ups are again determined by
competition in a free market instead of by

disciplined. He also gave them the
impression it would hold down the turnover

and

unless

would be

Definitely.

one

tered,

$10.5

was

■

working again. He made dealers believe for
thing that if their salesmen were regis¬

•

the staff members would

security flotations in 1952

where the

SEC and NASD fiat.

Why would
/

difficult to float certain types of new
issues? % '
,%• •••"...

Yes.

all of which is

Won't this be likely eventually to make" it

•

'•/

country

in 1929 (before we had

re-

come more

the

of the

some

amount from the

Yes.'■

t~these amendments?
A

issues?

their purpose.

figures given in their
quickly and see
think they indicate the SEC is an asset

new

ments

tions could

■

new

serves

that the composition
earlier year differed

secondary market

a poorer

the

put

including $800 million investment
company shares, contrasted with $10 billion

the SEC's

philosophy and the SEC's

they

billion,

item sold to the public.

ficially make for

passage
on

lentless efforts to force mark-ups down arti¬

compliance

every

Does the 5%

When

have you believe in their efforts to perpetuate
themselves in their jobs. They say the total

.should be forced to disclose its gross profits

...

impression that
proud of.
How

release and break them down

quirement should not stand. If it does, then
every other business in the United States

securities business.

(c)

branch of the investment banking

any

kind.

Let's take

in¬

profit I make by selling it to you?" I say it's
nobody's business how much runderwriting
profit there is in a deal. I say that this re¬

;

was

the

What do you mean?

sale is consummated must

with the

record

may be sure there is a "nigger in the woodpile" somewhere. When it comes to semantics
and propaganda, the SEC lads are
right there.
They may not make any misstatements, but
you can be sure they will try and mislead you
if it

but before I do here is the amount of
gross

Prevent non-registrants from transacting

being controlled.

are

he,

Nothing

if you
to the

proposed
bid-and-ask rule.
Can you imagine in any
line of business
saying to a customer "I want
to sell you this car or necktie or
bedspread,

registrants could be controlled
the same way as the members them¬

price to the underwriter and

and un-American

that these
<.

dealer, gets. This dis¬
closure requirement is just as
wholly wrong

officers,
employees who

with

This left
was

word "real" before investment securities
you

low

new

dealer must give to

vestor at the time

partners,

and

transactions

I believe it is due to the fact that the
pros¬

pectus which

Association

traders

stock issues reached

common

In this release

about it?
A

un¬

the next step?

National

matter of fact

How do you account for that?

Compel all member firms to register with

proposed the adoption of the
foliov/ing by-law amendments:
(a)

1929.
this

year.

step that was

changing trade

issues, too.

new

investment securities would be twice that of

regulating or destroying the invest¬
banking and brokerage business?

tell them and that's that.

billion.

And if it hadn't been for the destruc¬

shares of almost $800

grand total of $10.5
they stated that even
after adjusting for changes in the purchasing
power of the dollar, the 1952 figure for real

quarter of a century ago.

the bright lads in the SEC (if
they are
permitted to go merrily on their way) will
get around to narrowing underwriting spreads

told what Fulton wants to

are

1929,

sure

form of dues

the

indicating new securities offered in
1952, including both new money and refund¬
ing issues, amounted to $9.7 billion exclusive
of investment company

were

Does the

they know what's good for them
they won't try to pry into how the money
in

7,085

curity issues?

told that if

them

release

there

ment

though it is supposed to be a voluntary
Association, members realize without being

from

9,057

A couple of weeks back I saw a SEC press
•

NASD

Even

obtained

That's 38% less firms and branch offices than

plus expenses?
A

tive influence of the SEC

What do you mean you

3,697

a
thriving state, will theh
correspondingly difficult to raise
capital through the sale of securities.,
•

changing trade custom and usage, the^e would
probably be 25% more instead of 38% less
today. So I ask you, are the SEC and the

he does, I suspect he is wined and dined
plenty by dealers and brokers everywhere.
try,

4,765

Branches

Correct.

And when he travels around the coun¬

I hear.

Dec.'52

6,772

Total

less in the same category.

July'32

7,690

Thursday, March 5, 1953

needed in

are

find

of the Business Conduct Committees are more
or

Dec.'29
Main Offices

and

...

some

eco¬

bearing

objective study would reveal

that the Securities Acts and the administer?-

time

No.

Just the opposite.

Here

showing the number of firms
of branch offices
of last year,

are

the

passes

figures

and the number

they maintained

at the end

at the end of 1929 and at the

and

investors realize this, they will

be less inclined to

business
which

enterprises.

are

ing thereof by the SEC

buy the securities of small
Such small enterprises,

essential to small

community life

first

Why
vate

were a

factor of the!

magnitude.
was

there such

placements last

large volume of prL

year

and

none

in 1929?

>■

Number 5200

Volume 177

There

was

..The Commercial and Financial Chronicle

Securities Act and

SEC in

(1041)

December^ 1952,

the

SEC

"liberalized"

The teriffic cost, onerous

1929.
:

}

their rules

requirements

and the time element incidental to the

terial

tering of securities

calls

regiswith the SEC has led

debentures directly to just

may now

one

few large institutions or insurance

the issuer

companies.

J'-;,

Other factors

may

rules

have played

1
primary one. In the parlance of Wall Street
■[ d -this is known as direct placement, since it
does not involve the public offering of the

the losers

are

other

and

dealers

investment

who

are

denied

corporations have
when
A

new

you say

^ V terrent to
this

our

major de-

was a

foreign issues being floated in
'

member in the

of the
Q

Clear¬

that would result in

ties and

domestic

successful

securities?

If methods

World Bank, why shouldn't the

[
I
•

''tombstone'.

•A ; Yes.
cause

merchants

copy

can

are

seri¬

be used in

ads.

The

dealer,

institutions

cover

see

investor may
profit I,

what

and

dealers

do,

erature is deemed to include any communication (whether in writing, by radio or by

Under what rules

That vague one that says: "A member, in the
conduct of his business shall observe a high

the

are

charges brought?

just and equitable prin¬

Conduct

ness

additional

•

Committees

are

in the securities field

each

sees

fit in his

any

basis

tained

the

prospectus that would be on

consuming.

Regarding
say

the

own

transact business with

formulate
regarding the standing

consequence

dealer-brokers

ask

and

every

Business Conduct Committee to

by name how he would rate
would find that he would tell
is tops, that one is not so good

you name
each one, you

the

time

hundred

tell

Department of Commerce.

do business each day with many other
own
city or in other cities in the
country. If you were to pick out the names

you

though the sale had been ef¬
information

and

may

member

selling literature.

fected

of the

other

firms in his

rem¬

investor, however, should be protected
as

are

of other dealer-brokers. A dealer in New York
-

dealer to

little

' dealers

or
indirectly, to a greater or
competitors of the dealer on trial. An im¬
portant thing to remember is that most /firms

I don't think it should be compulsory
give an investor a prospectus.
should be permitted to give as much or

directly
lesser degree,

investor, and criminal prosecution by the

concept of Anglo-Saxon

our

recission of the sale of the securities to

con¬

The

this

one

and 1 for

one

and

right down the line. In other words,

so on

wouldn't do business with him,

they have their
a

that between the

preconceived notions of

own

dealer's ethics before he

that

time

corporation decides to engage in an

dealer

comes

consequently has

trial, and

three

strikes

against him right off the bat under such
'.

judicial system, and it is

judicial system in

expansion program and the time its lawyers,

effect.

accountants, engineers and whatnot prepare

these

all fhe data

high in their profession, but the fact is that

now

necessary

make it effective,

You said until recently.

it is

foreign to the
jurisprudence as that is.

our

opinions of their

investment company.

for

the

Un-American and

brokers themselves and therefore

mean

Yes indeed!

Department of Commerce. Copies should
be freely available for public inspection and
duplicates available for a small fee. If at a
date subsequent to the filing and sale of the
securities it develops that it in any way was
a false document, it could be used as a basis

dealer to induce the purchase of shares of an

■

the Committee passes judgment on

complaint?

That all members of the Association's Busi¬

Does this

mean

own

restrictions have been lifted?

You

mandatory for an issuer corporation to file a
short, sensible and readable prospectus with

television) used by an issuer, underwriter, or
.

investigator,

Meaning what?

Instead I would recommend

time

governed by a so-called "Statement of
Policy" issued by the SEC. Therein sales lit¬

plaintiff,

Yes.

would do away with the
filing of registration statements?

mean you

element, just let

and

complainant

that it be

them.

and

according to
justice.

as we see

shares of

connection with investment funds is censored

mem¬

In what capacity does the Committee act?

standard of honor and

present procedure is altogether too expensive

three

ciples of trade."

total number of shares involved (like 300,000
Advertising of investment funds is
similarly restricted. Sales literature used in

Conduct Committee, usually

Not

Does that

file with the

share.

hearing take place?

Does he get a fair trial?

by law just

per

decides

had the freedom

j ;•

stock), and the price

should

subcommittee of the District Busi¬

entire concept

was

Before

its

whose securities he

■L

Before whom does such

common

dealer

corporation
offering for sale, the

Committee

Conduct

not

The

of the

setup).

prosecutor, judge and jury.

name

Business

ness

advertisements the

periodic meeting (the country has thir¬

incorporating therein

pertinent particulars

brevity of the copy. Unlike
in other kinds of business, the

Conduct Committee in his district at its

edy.

the

ness

brought
to trial although the NASD as with the SEC
studiously avoids use of the word trial. In
their parlance they "set a date for a hearing."

delve into the voluminous detailed

false statements would be

called "tombstone" ads be¬

Well, the District Secretary of the NASD may

The

except

Attorney General of those responsible for

taking mark-ups of more than
said you would tell me later.

was

you

whether

Professionals such

brokers

brief circular

continuous threat

bers.

making.

and

dealer

5% and

agency

individual

average

the front

the

attorney general for price
has been the case in recent years.

What then?

is nothing monopolistic
they should be legalized at

remove

No.

long that their origin is
insight into their character

teen districts under the NASD

prevent

industry

invest¬

pro¬

the

selling new issues of securities until
recently could do no more than state in his

-i

being obtained by
a
governmental

same

dealer

Some times you

the

bring the matter to the attention of the Busi¬

to be used for the purpose

for

They

would

calculated attempt to

SEC and the

that so?

You said the "identifying statements" were

the

didn't make

to issue

I understand that selling new issues of securities is materially retarded because only

a
;

particulars incorporated in them. It would be

interest.

manufacturers

much better all around if

benefits be extended?
In the compliance by the
SEC with the request of the World Bank con¬
cerning its securities, we see a tacit admission by the Commission that the Securities
Acts and their interpretation are onerous
burdens concerning the marketing of securi¬
ties which were best removed in the public

similarly restricted in their

were

of course,

marketing and marketing conditions are ben¬
efited by these exemptions granted to the

jT,

they

there

custom

A while back I asked you what happened if

How much business

and

look

was

disposi¬
tion at the best possible price of the offering,
certain provisions of the Securities Act would
have to be waived, and, in fact,,these were
waived.
By 1 a parity J of reasoning ! why
shouldn't the same be true of foreign securi¬

;

of locating persons
interested in getting a prospectus. Is it your
experience that individual investors read
these prospectuses?
i.

felt that if these particular securi¬
ties were to be given the broadest possible
market, one that was liquid and unrestricted,
one

of affairs!

action

the

ments to the Securities Act.

of these securities.

case

reveal

agreements
failure. These agree-

fixing as
change in existing securities legislation
can be considered
adequate otherwise.;

Divi¬

like the
RFC. Some of the restrictions might well be
statutory but it would appear to a dispassion¬
ate observer that the SEC was never seriously
interested in having them removed by amend¬

They promulgated several rules to ex¬
empt the World Bank securities from certain
provisions of the Securities Act of 1934, which
means, among other things, that a member of
the NASD could give discounts to a nonly, it

two."

merchants

through

Yes.

line

once

think department stores and other

you

capital

the securities of the
some

for
True

about them and

(International Bank for Recon¬

struction and Development) from
provisions of the Securities Acts?

exceed

motional sales efforts.

it does not help to bridge

Didn't the SEC exempt

would

;

type

ously wonder if those New Deal architects

course,

Bank

the

been

field

unknown.

anything about this in
offering advertisement? Absolutely not!

that we hear so much
days and consequently hurts
foreign trade.

World

about

always

were

have

ment

dealer say

A fine state

the so-called dollar gap

Talking

will

can

his

talk about these

-;i.

communication

but

country?

Yes, and, of

written

may be robust year in and year out, new
products admittedly in tremendous demand,

that this fact

they

ments

have been paid by the issuer cor¬
poration for 50 consecutive years, earnings

governments, municipalities and corporations,
of course, is somewhat different.
1

Would

but

dends may

Yes, but the information required of foreign

business

par¬

and extensive

selling

made to float issues without such

issuer corporation, it
specif¬
ically stated that "it is not contemplated that
this statement regarding the nature of the

through the same
registration procedure
issues here?
to

No.
This applies not only to
corporate but
large municipal issues. Attempts have been

business of the

are

Do foreign governments, municipalities, and
onerous

corporation is engaged in. The SEC
the subject defined an
"identifying

requirements.

ticipation in these issues.
Q

new issues be successfully floated with¬
price maintenance provisions in syndicate
agreements?
•
*

out

advertisement which meets the Commission's

also the smaller institutions

investors

Can

ma¬

be said about the kind of business

statement"

minor part in this trend, but this is the

securities

promotional

taking the form of what the SEC
"identifying statements" for use as a
means of locating persons who
might be in¬
terested in receiving a prospectus, a few words *

corporations with high credit ratings to sidestep the SEC and raise capital by selling
bonds, notes

that in ads

to be incorporated

registration statement and the 20 days

it takes the SEC to look it over and

markets

can

change

that

longer possible to obtain the needed

financing.

men.

not

trying to cast aspersions

Most of them

are

they would be excluded from
regular

courts

the

likely to be biased. To illustrate

further, at

hearing

jury in

grounds

who stand

men

they

our

were

point still

while back before the
Continued

page

The Commercial and Financial Chronicle

(1040)

Continued

depth of the depression in July, 1932, just
before the SEC came into being:

from page 47

INCREDIBLE—BUT TRUE!
"is

less in the

same

6,772

Dec.'52
4,765

Branches

3,697

2,285

2,320

11,389

9,057

7,085

Total

of the Business Conduct Committees are more
or

July'32

7,690

pensation and are all unwitting puppets of
Fulton even though he may lead them to be¬
lieve he is subservient to them. All members

Dec.'29

Main Offices

category.
A

salary?

Does Fulton receive

Oh, yes—he gets $40,000 a year plus expenses,

Even

though it is supposed to be a voluntary
Association, members realize without being
told that if

they know what's good for them
they won't try to pry into how the money
obtained

They

spent.

form of dues

in the

them

from

What

Well, that's

Not

)

custom and

Okay, what

The NASD then

was

the next step?

National

Dealers

all

salesmen,
handle

Association

their

traders

officers,
employees who

with

transactions

customers,

•

registration
constitutes an agreement to abide by and
comply with all of the provisions, condi¬
tions and by-laws of the NASD.
Make registrants subject to . the disciplinary machinery now set up by the

(d)
..

With

the

of these amendments, non¬
the part of the individual with the

Association's edicts

mark-ups or in other direc¬
deprive him of the privilege of earn¬
ing his bread and butter and to take care of his
family by engaging in the securities business.
Did

membership vote affirmatively

Yes.

Why would

these that

; /

■

started

the

these

salesmen

and

not

their

by indirectly controlling their
compensation. Another thing, in my opinion,
that enters into the
way the vote went was

A
i

a note accompanied each ballot stating
unsigned ballots would be counted.

that

they discipline salesmen and

their

course,

and

I would

not

amount from the

securities

be contrasted with

determine

dealers in

must

thereafter,

case

was up or down.
So again,
is the SEC regulating or destroying
the investment banking business? " '

;

What is the other difference you had in mind?

The other fundamental difference in the

underwriter

be maintained

While the gross
of

whereas in 1929

incentive

small

find other
secu-

original

increasing?

the

the exact

reverse

was

true

;

Why do

Well, if business is bad with

for

issues

part

buyers in those

se¬

purchasers wish

suspended

corporation,
its outstand¬

putting themselves in a position where
they have to continue paying interest on these
no

future

means

be 10%,
to make it

ever

how

matter

date

curbing

expenses

possible in

letting workers

time

wher¬

suggestion that

their doings.

was

How¬

while certain other elements in the

nomic

picture undoubtedly have

this trend, an

that

is at

bankruptcy. This
(less business for

period of business adversity.

part of this change
ever,

business

bad

face

The SEC lads will scoff at the

where the
As

other concerns) and

may

sell.

;

some

of the dealer to
to

can

;

are

Let

that?

say

ing stock until things improve. On the other
hand, when money is raised through the sale
of debt securities as in 1952, corporations

securities

them

profit

cases

you

dividends

if,

of the

69% of all offerings con¬
sisted of common and preferred stock issues.
This was a much healthier situation.
V V ;

15% or 20% and is adequate
profitable for him to sell them initially, the
5% philosophy edict and the SEC's arbitrary
policy of holding mark-ups down eliminates

com¬

position of the financing for the two years
is that practically all o£ the 1952
financing
took the form of bonds, notes and debentures,

of issues

the over-the-counter market.

explain.

corporations of the country?

market

$10.1 billion for-1929

whether the amount ofr securities

I ask you,

time goes on,

;

smaller

•

$10.5 billion figure, you get
$6.4 billion which is the figure that should

';.

■

and when he desires to reconvert his

this is true under the doctrine

Is the number of firms engaged in the

his

since in that year

What happens in the

firms

matter

for

billion

this will be-:

say

obvious

investment

just take the time to point out two
differences of fundamental
importance. • One
is the fact that the $10.5 billion
figure the
SEC quoted for 1952 includes
private place¬
ments of $4.1 billion.
If you deduct this

re¬

security

L'...

million

publicly offered

i■' b

$800

Let

secondary market

v,-t. ■

Definitely.

market

the

rities business

of agency.

;

including

mark-ups are again, determined by
competition in a free market instead of by

as,

Fulton has made it clear

employees. As

new

to the SEC.

curities into cash.^

recently in Association bulletins that a
firm cannot escape the consequences of the
law, of

■

perpetuate
jobs. They say the total
security flotations in 1952 was $10.5

For example.

unless

a poorer

would

item sold to the public.

issues?

Yes.%:

even

actions

a customer "I want
necktie or bedspread,

they have been sold. In such cases, the
assumption is the investor will find there is

now?

Not that I know of.

car or

after

firms

salesmen

that

saying to

this

When new issues of
big corporations: are
floated, provision is usually made for their
being listed on the New York Stock Exchange

disciplined. He also gave them the
impression it would hold down the turnover

proposed
imagine in any

you

asset

point out
that the composition of the
financing in the
earlier year differed
considerably from 1952,
all of which is true. But
they do not stress
and spell out what those differences were
where the implications would be unfavorable

the SEC's

was

Can

But why?

would be

working again. He made dealers believe for
thing that if their salesmen were regis¬

figures given in their
quickly and see

company shares, contrasted with $10
in 1929 (before we had an SEC) and

grapevine

of the

some

think they indicate the SEC is

billion,

SEC and NASD fiat.

one

tered,

new

Yes.

old

rule.

,'r

obviously obnoxious?

Well, Mr. Fulton

price to the underwriter and

he,

difficult to float certain types of new
issues? ; ;

firm vote in favor of rules like

seem

in¬

Won't this be likely eventually to make it

these amendments?

every

come more

the

Let's take

sale is consummated must

ficially make for

tions could

their purpose.

release and break them down

lentless efforts to force mark-ups down arti¬

serves

Does the 5% philosophy and the SEC's

propaganda, the SEC lads are right there.
may not make any misstatements, but
can be sure they will try and mislead you

What do you mean?

profit I make by selling it to you?" I say it's
nobody's business how much underwriting
profit there is in a deal. I say that this re¬

passage
on

should be forced to disclose its gross profits

NASD.

compliance

you
if it

low

dealer must give to an

the

put

They

quirement should not stand. If it does, then
every other business in the United States
.

they

may be sure there is a "nigger in the woodpile" somewhere. When it comes to semantics

and

but before I do here is the amount of
gross

When

themselves in their

to sell you

impression that
proud of.
How

I believe it is due to the fact that the
pros¬

line of business

pectus which

bid-and-ask

act of

mere

un¬

new

with the

record

the country as the staff members
have you believe in their efforts to

and un-American
.

securities business.

Provide that the

dealer, gets. This dis¬
closure requirement is just as
wholly wrong

registrants could be controlled
in the same way as the members them¬
selves are being controlled.
(b) Prevent non-registrants from transacting
any branch of the investment banking
or

word "real" before investment securities
you

if you

the discount

that these

(c)

matter of fact

This left
was

Nothing of the kind.

year.

vestor at the time

partners,

and

In this release

about it?
A

se¬

stock issues reached

common

contain the cost

Securities

1929.

this

How do you account for that?

Compel all member firms to register with
the

issues, too.

new

last

proposed the adoption of the
foliov/ing by-law amendments:
(a)

Sooner

investment securities would be twice that of

derwriting commissions or discounts as a
percentage of gross proceeds in the case of

mark-ups.

new

later you may be
the bright lads in the SEC (if
they are

new

step that was
changing trade

billion.

regulating or destroying the invest¬
banking and brokerage business?

philosophy apply to

shares of almost $800

grand total of $10.5
they stated that even
after adjusting for
changes in the purchasing
power of the dollar, the 1952 figure for real

century ago.

permitted to go merrily on their way) will
get around to narrowing underwriting spreads

bit involved. Why not let me

tell you about the next
taken in the overall pattern of

And if it hadn't been for the destruc¬

directly.

sure

first

quarter of

curity issues?

happens if a dealer is found to be taking
than 5% on transactions?
a

indicating new securities offered in
1952, including both new money and refund¬
ing issues, amounted to $9.7 billion exclusive
million, thus making

1929,

Does the 5%

tell them and that's that.

release

of investment company

were

ment

told what Fulton wants to

are

A couple of weeks back I saw a SEC press

NASD

there

plus expenses?
A

changing trade custom and usage, there would
probably be 25% more instead of 38% less
today. So I ask you, are the SEC and the

dined
plenty by dealers and brokers everywhere.
What do you mean you think he gets $40,000

a
thriving state, will theh
correspondingly difficult to raise
capital through the sale of securities.,

tive influence of the SEC and the NASD in

try, as he does, I suspect he is wined and

needed in

are

find

That's 38 % less firms and branch offices than
Correct.

And when he travels around the coun¬

I hear.

and

Thursday, March 5, 1953

...

some

eco¬

bearing

objective study would reveal

the Securities Acts and the administer^

■

No.

Just the opposite.

Here

showing the number of firms
of branch offices
of last year,

are

the figures

and the number

they maintained at the end

at the end of

1929 and at

the

passes

and investors realize this, they will

ing thereof by the SEC

were a

factor of the

be less inclined to

buy the securities of small

business enterprises.
which

are

Such small enterprises,

essential to small

community life

first

Why
vate

magnitude.
was

there such

placements last

large volume of prD

year

and

none

in 1929?

Volume 177

Number 5200

..The Commercial and Financial Chronicle

(1041) ,,49

There

was

Securities Act and

The teriffic cost, onerous

1929.

SEC in

requirements

and the time element incidental to the

their rules

one

few

large institutions

primary
this
does

the issuer

the losers

are

other

also the smaller institutions
who

investors

denied

are

ticipation in these issues.

selling

new

this

will

can

type

exceed

line

two."

once

of affairs!

state

and

stores

manufacturers

would

motional sales efforts.

Some times you

didn't make

capital

through

calculated

interested in

of the
Q

The

Business

member in the

ly, it

was never

of these securities.

case

Clear¬

Before whom does such
Before

that would result in

successful

disposi¬
tion at the best possible price of the offering,
certain provisions of the Securities Act would
have to be waived, and, in fact, these were
waived.
By • a parity; of reasbfiing • why
one

shouldn't the
ties

and

be true of

same

domestic

foreign securi¬

securities?

methods

marketing and marketing conditions are ben¬
efited by these exemptions granted to the
World Bank, why shouldn't the same bene¬
fits be extended?

SEC with the

interest.
V-

to issue

that so?

They

cause

merchants

are

the
in

called "tombstone"

ads

be¬

Conduct Committee,

complainant

You

mean

other

the

kinds

copy.

Unlike

business,

the

dealer

selling new issues of securities until
recently could do no more than state in his
advertisements the

name

whose securities he

was

of, the corporation
offering for sale, the

total number of shares involved (like

shares of
3L

common

300,000

stock), and the price

per

share.

Advertising of investment funds is
similarly restricted. Sales literature used in
connection with investment funds is censored

and

governed by a so-called "Statement of
Policy" issued by the SEC. Therein sales lit¬

erature is deemed to include any

communicawriting, by radio or by
television) used by an issuer, underwriter, or
dealer to induce the purchase of shares of an
tion: (whether

restrictions have been lifted?

investigator,

do,

the Committee passes judgment on

Yes indeed!

Un-American and

foreign to the
jurisprudence as that is.

our

Under what rules

That vague one that says: "A member, in the
conduct of his business shall observe a high
standard of honor and

had the freedom

the charges brought?

are

just and equitable prin¬

ciples of trade."
Not

according to
justice.

Instead I would recommend that it be

Meaning what?

mandatory for an issuer corporation to file a
short, sensible and readable prospectus with

That all members of the Association's Busi¬

Yes.

fair trial?

Conduct

ness

concept of Anglo-Saxon

our

Committees

dealers

are

brokers themselves and therefore

for

opinions of their

recission of the sale of the securities to

investor, and criminal prosecution by the

Attorney General of those responsible for
false statements would be

additional

any

rem¬

I don't think it should be compulsory
give an investor a prospectus.
He should be permitted to give as much or
edy.

dealer to

little

The

sees

fit in his

selling literature.

investor, however, should be protected

by law just
fected

tained

though the sale had been ef¬
of the

the basis

the

file with the

prospectus

information

con¬

that would be

Department of Commerce.

The

in the securities field transact business with

each

element, just let
time

say

time

that between the

corporation decides to engage in an

and

own

formulate
regarding the standing

consequence

do business each day with many other
own
city or in other cities in the
country. If you were to pick out the names

may

firms in his

hundred

member

dealer-brokers

ask

and

every

Business Conduct Committee to

tell you name
each one, you
you

this

one

by name how he would rate
would find that he would tell
is tops, that one is not so good

and I for

one

and

right down the line. In other words,

so on

wouldn't do business with him,

they have their

own

preconceived notions of

dealer's ethics before he

that

the

other

of other dealer-brokers.'A dealer in New York

and

Regarding

are

indirectly, to a greater or
competitors of the dealer on trial. An im¬
portant thing to remember is that most/firms
or

consuming.

directly
lesser degree,

present procedure is altogether too expensive
time

■

the

dealer

comes

consequently

has

trial, and

three

strikes

against him right off the bat under, such
judicial system, and it is

judicial system in

expansion program and the time its lawyers,

effect.

accountants, engineers and whatnot prepare

these

all the data

high in their profession, but the fact is that

now

necessary

to be incorporated

registration statement and the 20 days
it takes the SEC to look it over and

You said until

the

plaintiff,

Does he get

it is

mean

mem¬

make it effective,

Does this

dealers

would do away with the
filing of registration statements?

investment company.

recently.

and

mean you

SEC and the
A

usually three

complaint?"

own

entire concept

brief circular

of the District Busi¬

brevity of

brokers

delve into the voluminous detailed

Does that

for

making.

and

what

incorporating therein
pertinent particulars as we see them.

the

selling new issues of secu¬
materially retarded because only
"tombstone" copy can be used in ads.
Is

institutions

rities

Yes.

investor may
profit I,
Professionals such
see

particulars incorporated in them. It would be

compliance by the
request of the World Bank con¬

much better all around if

In the

I understand that

dealer,

hearing take place?

subcommittee

In what capacity does the Committee act?

its

cover

decides

prosecutor, judge and jury.

individual

average

the front

of course,

cerning its securities, we see a tacit admis¬
sion by the Commission that the Securities
Acts and their interpretation are onerous
burdens concerning the marketing of securi¬
ties which were best removed in the public
Q

The

No.

should

bers.

look

felt that if these particular securi¬
ties were to be given the broadest possible
market, one that was liquid and unrestricted,

Committee

dealer

ness

of locating persons
interested in getting a prospectus. Is it your
experience that individual investors read

was

Conduct

not

;if'i i'

setup).

brought
to trial although the NASD as with the SEC
studiously avoids use of the word trial. In
their parlance they "set a date for a hearing."

to be used for the purpose

prospectuses?

periodic meeting (the country has thir¬

You said the "identifying statements" were

these

Conduct Committee in his district at its

What then?

ments to the Securities Act.

ness

whether

dispassion¬
seriously
having them removed by amend¬
to

appear

Well, the District Secretary of the NASD may

attempt to prevent
by industry except

ate observer that the SEC

taking mark-ups of more than
said you would tell me later.

was

you

pro¬

seri-

being obtained
a
governmental

statutory but it would

the securities of the

(International Bank for Recon¬

dealer

teen districts under the NASD

agency
like the
Some of the restrictions might well be

RFC.

continuous threat

bring the matter to the attention of the Busi¬

the

remove

by an attorney general for price
has been the case in recent years.

5% and

other

similarly restricted in their

were

is nothing monopolistic
they should be legalized at

A while back I asked you what happened if
a

there

change in existing securities legislation
be considered adequate otherwise.

can

How much business

think department

action

dealer say

you

they

that we hear so much
days and consequently hurts
foreign trade.

some

reveal

fixing

Divi¬

ously wonder if those New Deal architects

Yes.

in-

the

anything about this in
offering advertisement? Absolutely not!

A fine

it does not help to bridge

struction and Development) from
provisions of the Securities Acts?

<tj-*

about

of the issuer corporation, it
specif¬
ically stated that "it is not contemplated that
this statement regarding the nature of the

the so-called dollar gap

World Bank

Talking

long that their origin is
insight into their character

about them and

his

that this fact was a major de¬
foreign issues being floated in

Didn't the SEC exempt

for

True

would

but

issues here?

course,

field

unknown.

advertisement which meets the Commission's

talk about these
our

ment

may be robust year in and year out, new
products admittedly in tremendous demand,

country?

Yes, and, of

No.
This applies not only to
corporate but
large municipal issues. Attempts have been

requirements.

merchants
more

communication

have been paid by the issuer cor¬
poration for 50 consecutive years, earnings

governments, municipalities and corporations,
of course, is somewhat different.

terrent to

written

new issues be successfully floated with¬
price maintenance provisions in syndicate
agreements?

made to float issues without such
agreements
but they were always a failure. These
agree¬
ments have been the custom in the invest¬

dends may

Yes, but the information required of foreign

Would you say

corporation is engaged in. The SEC
subject defined an "identifying
as

Can
out

the

business

par¬

foreign governments, municipalities, and
corporations have to go through the same
onerous and extensive registration procedure
when

ma¬

business

rules

statement"

In the parlance of Wall Street
as
direct placement, since it
involve the public offering of the
by investment dealers who are

not

and

one.

securities

promotional

be said about the kind of business

may now

known

SE£ ."liberalized"
or

taking the form of what the SEC
"identifying statements" for use as a
means of locating persons who
might be in¬
terested in receiving a prospectus, a few words

insurance

the

that in ads

calls

companies. Other factors may have played
a
minor part in this trend, but this is the

December,, 1952,

terial

regis¬

tering of securities with the SEC has led
corporations with high credit ratings to side¬
step the SEC and raise capital by selling
bonds, notes or debentures directly to just

■-

A
r

markets

can

change

that

longer possible to obtain the needed

financing.

men.

not

trying to cast aspersions

Most of them

are

men

they would be excluded from

regular

courts

the

likely to be biased. To illustrate
further, at

hearing

jury in

grounds

who stand

they

our

were

point still

while back before the
Continued

page

■
'
I
,
■
'
'
The Commercial and Financial Chronicle...
■

(1042)

Continued

from

page

The

INCREDIBLE—3UT TRUE!
SEC,

high

a man

in the NASD in Denver

made the statement that "We know all

•„

dealers in

city and know which

our

the

ones

watch."

where less active securities

Can

cite

you

instances where members

any

of Business Conduct Committees

punitive action against
competitor?

have taken

was a

I'll mention

which

Committee

duct
in

Chairman of

The

mind.

couple of things that occurred
keeping with what you have in

are

Business

one

Con¬

dealer and not
capacity as an Association official
competitive dealer on the telephone

his

called

acting

effort
-

unearth

Heated

that might be purholders for resale to his

words

followed

the

and

that trouble
next

came

was

day

ahead for him.

field

for the investments

Sure enough
from the NASD

man

market when there
any

ahead and

suspended from membership for
I

of time.

ket to

dealer from

dealer
to

taking unconscionable mark¬
"if anything happens to you" remember
firm would like you to open a branch

office for
whether

in your town.

this

Association

dealer
if

just

counter market is the

America.

Bureau

publishes

long

after

this

firm

conversation

opened

town

that

was

that

the

and he became

their

manager

Appeals from Business Conduct Com¬

mittee decisions

perience has
done

the

creased.

are

inadvisable because

demonstrated

punishment

where

meted

this

out

Then, too, the regulated must

tinue to live with the

It is

large

United

tarily

counter

Exchange.

rare

firms

"making

security.

that rival

they

What do

One salesman will want to

you

mean

by that?
upon

the

customer of the other fellow how
much bet¬
ter off he is in

will make

doing business with him

were

the

bought from his

customer

taken

him to call

and file

they

are

and

the offices of the NASD

complaint.

over-the-counter

markets.

What

about the

the

dif¬

ference between the over-the-counter market
,

and the listed

exchange market?

but

and

ment

■

narrow.

These

are

merit

sometimes

themselves.

sell

them

In other

how

•

directly

cases

and will

investors

they have

dealer

following

throughout; the

always looking for securities that

country.

the

and

the

SEC

Such

undervalued

NASD

and

finger and toe nails.

legislation akin to it

one

are

If this and
not repealed

to expect

every reason

in time.
so we

ask

se¬

brought into line with their in¬

our

Congressmen in Washington,

Sena¬

are, you

convinced that the Securities Acts and the activi¬
of

SEC

the

and

NASD

detract

from

Ingredients that made America great?
it

.capital

those

Do they

for trade and industry to obtain

easy

the reverse?

If they do not, then Con¬

gressional remedial action is in order.
The

CHRONICLE

comments

would

any

appreciate

the views expressed

.editorial, reprints of which

are

receiving

in the above

available,

related phases of the subject under discussion.

Letters

will

published

anonymously

writer states he does not wish to have his

are

Our interview is ended and

tors

revealed.

curities

activities

will have

clientele.

process

situation where the cure is
The Securities Acts

revamped, there is

present good values to sell to their investor

By this

are

might be likened to a doctor who cut off his
patient's arms and legs because he had a few

integral part

securities

have

poli¬
good sample of
capitalism from working.
me

than the disease.

worse

and

prevent

Here you

ties

dealers

are

discussed

over-

acquainted with the invest¬
specific

...

Securities Acts and the SEC and NASD
cies

make
an

••

sell

definitely interested
as

beyond all

Depression is not fundamental to capitalism
capitalism is given a chance to work. The

given unlisted
or:

capable

are

interest themselves

operations, take inventory positions

They

been

matter of opinion

proof?

over-

quote prices at which they will buy and

sell.

too.

sum,

have

One last question. Do you think we are going
to have a depression? Y ■

over-the-

Because of competition,

are

tidy

infected
or

largely

reasonable doubt.

100,000

over

the

your answers

other

seeking business, and,

of their

competitor.

Qr You have been talking right along
^

and

securities that

Then he stresses how excessive
urges

quantities of the securities which

ordinarily is quite

Association

lish the facts I; have ascertained

Y
*

thing applies to
14,000 banks in the

market for"

the-counter dealers
in

pointed inquiries to determine the

mark-ups that

spread between their bid and asked fig¬

ures

impress

the

am convinced that an investigation by
a
Congressional Committee with full power to
compel individuals in and out of the regula-'
tory bodies to testify under oath would estab-

same

hundred

"quoting."

are

brokers

and

men¬

2,000

They stand ready to buy

substantial

the

dues

good. If the NASD
also, it would save invest¬

do these constitute facts which

instigate the complaints.

market.
a

request

In most instances if the truth

cases.

are

and

over-the-counter

the-counter dealers may

forth and file complaints?

known, it would be disclosed

were

Are

v .:

traded

are

One, five, ten,

complaints arise? Do investors volun¬

come

mar¬

Government, of all the state

municipalities

cut; the

for $6
coming fiscal year all of which
could be saved by its abolition with distinct
advantage to our economy. In fact, the SEC
does not need as much
money as it has been
getting.'It could close its regional offices all
over the
country and cut down in other ways

In addition, the securities of the

States

The SEC put in

The Eisen¬

million for the

Quotation

issues

governments and the bonds of
,

Other than through NASD field
examiners,
how do

budget.

wants

over-the-

corporations, too,- whose

The

repeal of the Securities

bankers

Out of town dealers would have

country.

in the

Administration

Their

mentioned in the National

are not

lies

ment

the

manual

traded

interest in them.

and the NASD?

Stock

hower

con¬

comes

solution

over-

only people local to small cities have

Service.

generally understood that by and

belonging to the New York

many

are

tries, they

examination at all is made of firms

New York

equivalent to taxation without representation.
and

25,000

stock

the

Acts and the abolition of the SEC.

eliminated

the

and the fact that
on

Exchange has lost a great deal of its
liquidity would take hours. Here, too; the

were

National

the stocks of most of the

Are all firms treated alike when it

No.

again

the years
for securities

over

market

that would be all to the

1,522

Stock

interest in the securities of their home indus¬

in¬

the

corporation bond manual.. There must

since

ex¬

regulators.

policing activities of the SEC

their

securities

was

1,237

1952

To discuss the
many reasons for this indicated

they
sell and this service estimates

1,297

Sold.:___1,124,800,410 425,234,294 337,805,179

shrinkage

service in which dealers

approximately

tioned

branch office in

buy

1932

registered

largest securities

The
a

Issues Listed

is .enormous

1929

year.

indicate the over-the-counter securities

of it.

volume

ket

decided he could

I do know though that it

that dealer's

The

traded

are

the-counter market?
A

and

exchanges in the country last

wish to

Chairman's

all

listed

No.

2,624 stock issues

were

not make both ends meet if he had to lower

mark-ups.

an exceedingly
general picture." The

issues

How many securities

expelled from the

was

I do not know

issues listed.

otherwise would not be

his
not

be tried for

ups
-

was

bonds

an ac¬

Exchange for Dec. 31, 1929,
1952, together with a number of

1932, and

prices, and who perform

964

and

Have

administering of

New York Stock

the spread between bid and

narrow

SEC stated that there

nearby town just before that
going in the room where he was
a

make

who

the need

strong and active stock market.

Just the
opposite. Here are some revealing
figures showing the volume of sales on the

speculators

useful function in the

of another Business Conduct Committee told
a

active

who

asked

period

also told that the Chairman

was

must

them by the SEC
helped to make this
complished fact?

were

formerly.

the Securities Acts and the

they purchase but would

there

warned him that trouble
was

;

long after that he was charged with tak¬
ing unreasonable mark-ups. He was found
guilty by the local Business Conduct Com¬
mittee headed by the competitive dealer who
was

for

liquid market.
may add that in order for a stock mar¬
perform this function effectively there

And I

not

invest

not

into his office to examine his books and

degree

You just quoted Dr. Anderson

strong and active stock market in which men
may shift investments readily.
Many men
will invest if they have a dependable market

Chairman of the Committee told the dealer
the

same

willingness to thus risk his own money. As
that eminent economist, Dr.
Benjamin M.
Anderson, put it "That is why we need a

stock

chased from present
customers.

down to their false concepts of what they
no
longer make this possible to the

ups

should be

a
monopoly in that stock and the con¬
tinuity of any market thus created 'is de¬
pendent upon his financial resources and his

"lay off" circularizing the
certain local company in an

thereby providing a good mar¬
wishing to reconvert his

investor

But, of course, the SEC
and NASD in their
eagerness to force mark¬

He has

and asked him to

stockholders of

Thursday, March 5, 1953

securities into cash.

exchange, it devolves upon the stock special¬
ist for each particular stock to create a market
in the absence of any public orders to buy or
sell by putting in an order for his own ac¬
count.
In other words if you wanted to sell
100 shares of XYZ stock and the specialist
had no order from anyone else to buy that
stock, he himself would be expected to do so.

dealer because he

traded

are

ket for

■

•

trinsic values

exchange market is often referred to as
because in theory an ex¬
change provides a focal point for the concen¬
tration of all bids and
offerings of potential
purchasers and sellers for all securities listed
on a
particular exchange. Auction marketing
in a security cannot be maintained unless
there is sufficient activity in it. In those cases
auction market

Communications

Editor, Commercial and
25

Park

the

identity

addressed

Financial

Chronicle,

should

Place, New York 7, N. Y.

Volume 177

Joins
LOS
P.

The Commercial and Financial Chronicle

...

Homer

Dempsey-Tegeler
to The Financial Chronicle)

(Special

„

Number 5200

(Special

ANGELES, Calif.—Thelma

the staff of
Dempsey-Tegeler & Co., 210 West
has joined

Furey

Seventh

Street.

formerly

with

Miss

Furey

was

Wykoff

Edgerton,

Co.,. and Hannaford & Talbot.

business

from

2328

(Special

with

that

Miguel

become

associated

Financial

The

HILLS,

Waddell

Wilshire

has

Boulevard.

—

DIVIDEND

NOTICES

BROOKLYN, N. Y.—Sam Belof-

Phila.

sjcy has formed the Union Securi¬

engage

ers

record

March
at

the

26,

1953

dividend

declared

Stock

16,

COMPANY

DIVIDEND

NOTICE

The

following

dividends

have

been

the

1953,

Com¬

with

has

Gibbs

become

Co.,

ASHBY,

February

AnacondA

St.

$0.15

179

The

Board

American

Company

178

quarterly dividend of

(l'/2f/c)

the

Preferred

ending

quarter

75/

March

dividend of 25/ per share

the

and

Both

the

1953,

was

of
the Com¬

Checks

March

1953

1953.

REYNOLDS
February 24, 1953

will

m€T«L/

J. Williams

fer books will remain

LONG ISLAND LIGHTING COMPANY

meeting

Colorado

the

Fuel

and

Board
Iron

dividend

Page, Treasurer.

stock

cents

per

the

of Directors of
Corporation, held

BENEFICIAL

ferred.

LOAN CORPORATION

stock

of business

20, 1953.

twenty-five cents (251)
outstanding common,
payable April
1, 1953, to holders of record at tha
close of business March 20, 1953.

A dividend of

Preferred Stock, 5.25%, Series A
Dividend of $1.3125 per share.

Dividend of $1.25 per share,

the

stock has been declared

Preferred Slock, 5%, Seriet B

and

the

March 13, 1953:

the series B $50
in the amourtt of

DIVIDEND NOTICE

of record

ers

the series A $50 par value preferred
amount of sixty-two and one-half

share,

quarter ending March 31, 1953, pay?
able April 1,
1953, to holders of
record at the close of business Maxell

Directors has this day de¬
clared the following quarterly dividend
eacli payable April 1, 1953, to stockhold¬

also the regular quarterly
par
value pre¬
sixty-eight and
three-quarters cents per share, all payable on
March 31, 3953 to stockholders of record at the
close of business on March C,
1953.
dividend

5V2% cumulative convertible pre¬
ferred stock has been declared for tha

The Board of

New York, N. Y. on February 25, 1953, the
regular quarterly dividend on the common stock
of
the
corporation in the amount of thirtyand one-half cents per share, was de¬
clared,
together
with
the
regular
quarterly

open.

30 Church Street

COMMON DIVIDEND

Dividends

Corporation

Broadway, New York 4, N. Y.

trans¬

AMERICAN LOCOMOTIVE COMPANY

Virginia

regular dividend of one dollar
thirty-seven and one-half centf
($1,375) a share on the outstanding

Quarterly
The Colorado Fuel & Iron

■

seven

Richmond 19,

Notice of

The

February 25, 1953

COMPANY

Reynolds Metals Building

PREFERRED DIVIDEND

holders of

stock

METALS

Vice-President & Secretary

dividends

The

Vice President & Treasury

ANDREW W. JOHNSON

payable April

are

record

Paul E. Siiroads

mailed.
Wm.

Vice-President and Treasurer

rec¬

March 16, 1953.

closed.

Directors at

of Directors.

dividend

per

holders of record March 4.1958.

13,

declared by the Board

Stock, payable April 1,

Secretary and Treasurer

March

business

The

business

C. EARLE MORAN

the Common

Stock have been declared.

for

1953

business

April 1, 1953

March 10, 1953.

per

Stock

31,

payable

stockholders of record at the

declared

Transfer books will not be

Mining Com¬
pany has
today declared a
dividend of Seventy-five Cents
($.75) per share on its capital
stock of the par value of $50
per share,
payable March 31,
1953, to stockholders of record

Bank Note

188

meeting

February 25, 1968.
quarterly dividend of
seventy-five cents per share on
the capital stock, which will be
payable March 12,1953, to stock¬

per

ord at the close of business

Directors

Anaconda Copper

Common Dividend No.

1953 to stockholders of

February 26, 1953

NOTICES

quarterly dividend of 60<

16, 1953.

quarterly

mon

Preferred Dividend No.

Common Stock

DIVIDEND NO.

DIVIDEND

The Board

stockholders of record at

the

Main

Dividend

Common Stock

$4.25 Cumulative Preferred
to

93rd Consecutive

CONSECUTIVE DIVIDEND

Stock, payable April 1, 1953

Secretary.

affiliated

507

by the

regular quarterly dividend
$1.0625 per share on the

Walter

—

declared

Preferred Stock

the

stockhold¬

business

Chronicle)

Mass.

168™

Board of Directors:

March

Loftus

O'BRIEN, Secretary

SHOE

CANADA

1953

By order of the Board of Directors.

STREET

Feb.

Fa.,

been

Joins Gibbs & Co.
Financial

RACE

Capital

payable

pany,

WORCESTER,

1953, to the holders of

COMPANY

quarterly

has

the

securities business.

The

(25f)

of the close of busi¬
1953. such dividend to be
as

JOHN J.

1012

Fifty Cents ($.50) per share

Company with offices at 1606

of Twenty-five

all shares of common

record of shares of said stock at the close
of business on March 10, 1953.

INTERNATIONAL

Incorporated
1513

(Special

March 10,
payable March 14,

NOTICES

METER

Form New Firm

Place

dividend

St. Louts

AMERICAN

Lincoln

ness

Connecticut office.

ties

February 27, 1953, authorized the pay¬

Cents per

NOTICES

DRY
DIVIDEND

COMPANY

The Board of Directors of this Company

:—

stock outstanding

Baltimore Avenue.

With the firm in its New Canaan,

RAILWAY

connected

Reed, Inc.,

NOTICE

8943

Alexander

Chronicle)

become

NOTICES

DIVIDEND

ment

Financial

has

Chronicle)

THE MINNEAPOLIS & ST. LOUIS

KANSAS CITY, Mo.—Albert J.

of the New York Stock

Exchange,

(Special to The

Calif.—
LINCOLN, Neb.—John E. Yost
joined is with Waddell & Reed Inc., Barthe staff of Waddell & Reed, Inc., clay Building.
Harry

With Waddell & Reed, Inc.

Cammann

has

offices

BEVERLY

DIVIDEND

Joins Waddell & Reed

(Special to The Financial Chronicle)

DIVIDEND

NEW CANAAN, Conn. — Auchin, Parker & Redpath, members

announced

Chronicle)

Santa Clara Avenue.

•

Braganca

Financial

ALAMEDA, Calif. — Homer
Craig is engaging in the securities

With Auchincloss Firm

have

With Waddell & Reed

Craig Opens

The

(1043)

■.

The transfer books will not be closed.
VINCENT T. MILES

Feb. 25, 1953

Checks

Treasurer

will

be mailed

by Bank of

the Manhattan Company.
ALLYN DILLARD,

Secretary

McGREW, Secretary.

Dated, February 26, 1953

New York 8. N. Y,

Dividends have been declared by
Preferred Dividend No.

Common

Dividends
f

one

dollar

($1.75)

per share on
of twenty five cents
Common

Dividend No.

Stock

114

CUMULATIVE

NOTICE

STOCK

PREFERRED

$3.25 Dividend Series of 194$

the Preferred Stock and
(25/j per share on the

$.81 Va

per

US?*

this Company have been
declared, payable April 1, 1953, to holders of
record at the close of business on March 13,
^

The Electric Storage

March 31, 1953)

February 26, 1953

Battery

The Board
clared

$.60 per share

The Directors have declared

dividend of fifty cents

to stockholders of record

close of

business March

1953.

13,

Philip Kapinas
T reasurer

March 2, 1953

J. H. MICHAELI,

the Common Stock,

($.50)

per share
payable March

Tennessee

M0UMS
JALOUSIE DOORS

Checks will be mailed.

& HARDWARE

Corporation
61 Broadway, New York 6, N.

H. C. ALLAN,

OVER

Philadelphia, March 2,1953.

AND CANADA

750 OFFICES

METALS, INC.

of Ludman Corporation

have declared the quarterly

per

dividend of 10c per share in

%.'/*'■

SYSTEM

to shareholders of record

of record at the close of business

March 16,1953.

:i7th Dividend
dividend
cents

able

1953,

26,

March

pay¬

1953

31.

dividend of

share owners of record March

Boston,

Mass.,

cents

February 26,

UtM
;

'•

THE

1953.

March 4, 1953

MIAMI
61

C.I.T. FINANCIAL CORPORATION
Dividend

day declared
dend of

Common Stock

A quarterly dividend

LIQUIDATION
National

cash lias been declared

NOTICE

Bank,

per

share in

located

in the State of New Jersey, is
its affairs.
All creditors of the
therefore

hereby notified
to present claims to the undersigned, at 85
Rector Street, Metuchen, N. J. <

this

the Common Stock

of C. I. T. FINANCIAL CORPORATION,

Metuchen,

are

of $0.45.

payable April 1, 1953, to stockholders of
ord at the close of business March 10,

rec¬

1953.

JOHN KUHN, Treasurer

the Capital Stock of

Company for the quarter

ers

April 1.5, 1953, to stockhold¬
of record at the close of busi¬

ness

March 13, 1953.
STUART K. BARNES, Secretary

February 26, 1953.

Phil T. Ruegger

Thomas D. Ainslie
Louis H. Meade

Liquidating Committee
January 20,

1953.

Guaranty Trust Company

COMPANY

COPPER

February 26, 1953.

Company

(Incorporated)
A dividend of
share

fifty (50tf) cents per
been
declared, payable

has

March

31,

reccord

1953,

stockholders

the close of business March

12, 1953.
An

QUARTERLY DIVIDEND
DECLARED
•

dividend

twenty-five
(25(f) cents per share has been .de¬
clared, payable March 31, 1953., *0
stockholders of record at the close of
business March 12, 1953.
extra

The transfer books of the company
not close.

Common Stock

551
Payable
♦o

per
on

of New York

p. McDQWELl,

GREENBURGH,

Marsh A ifD

freofurer.
iM',

m. iyiw

.■ PJ. -■1.

.■

"n-j'tt'-'j..1;1!

-J

13, 1953,

JOHN G.

March 31, 1953,

stockholders of record

March

will

Electric

Broadway, New York 6, N. Y.

quarterly divi¬

ending March 31, 1953, payable

The transfer books will not close. Checks will
be mailed.

Seventy-five (75) Cents

per

Dated:

President-

1953.

New York,

Association

iy '

The Board of Directors has this

closing

offering.

Max Hoffman

Treasurer*

interruption

since its first public

H. T. McMeekin, Treasurer

Metuchen.

JOHN G. GREENBUROH

paid quarterly dividends
without

j. h. elliott, Secretary.

12,

fifteen

March 11, 1953.

Ludman Corporation has

INC.

($0.15) per share
will be paid on March 20, 1953, to holders of
the outstanding Capital Stock of the Calumet
& Hecla, Inc., of record at the close of business
March
9,
1953.
Checks will be mailed from
the Old Colony Trust Company, Boston, Mass.

declared

was

HECLA,

Dividend No.
A

TWENTY-FIVE

February

CALUMET

cash-

regular" quarterly

':9"T

share has been declared, payable
30, 1953, to stockholders

March

cash, payable March 31,1953
,f

February 25, 1953
A dividend of fifty (50^) cents

The Board of Directors

Secretary and Treasurer

MACHINE AND

Treasurer

WINDOWS & HARDWARE

31, 1953, to stockholders of record at
the close of business on March 13,1953.

pAMERICAN

February 25, 1953

ALUMINUM OR WOOD

from the

Accumulated Surplus of the Company a

The dividends are payable March

31,1953

par value of $12.50 per share, pay¬
April 1, 1953, to holders of record
the close of business March 12,1953.

able
at

Quarterly Dividend

Quarterly Dividend of

Secretary

of the.

210th Consecutive

COMMON STOCK

of Directors has de¬

dividend of 25tf per share on the
outstanding Capital Stock of the Company

COMPANY

CARL A. SUNDBERG

LIGHTING COMPANY; INC.
DIVIDEND NO. 2?3

(for quarterly period ending

THE SAFETY CAR HEATING
AND

shore

1953, Transfer books will not be closed.
.

five cents

seventy

DIVIDEND

the Board of Directors, as follows:

179

Secretary

The Commercial and Financial Chronicle

am)

Thursday, March 5, 1953

...

tration

BUSINESS BUZZ

has

the

"civil

serv-

ice."
*

All

•

were

•

the

New

set

statute

(rut tl» Nttion'i

/J
/lftU

Capital

without

persons

BeTiind-tlu-StMW lntwpreUliom

-ms%

civil

y/»|i
X WW'

service.

WASHINGTON,

After

—

very

great deal of fun was^ being

had

around

has

Indiana,

tain

would

who

servative

Democrats

GOP

then

never

controls,

knowingly give aid and comfort
to the political enemy, and a

So most of the Democrats are

strong for Homer. The Indiana

is more for his established suc¬

Senator is learning that he has

colleagues, although they
cess

say

in the business world than

become

statesman.

for his

political sagacity.

demonstrating that in

Senator Capehart got
that

was

the idea
politics for

super

Republican party to offer
**standby" wage and price con¬
trols

ping

ministration.

What happened,
ferred

going to pass this bill through

P. Wolcott of the House Bank¬

the committee and on the floor

ing

and

Committee

White

to
the
spoke their

went

and

House

Wolcott,

thinking

whose

Taft

leadership

within

standby controls.
The
Indiana Senator, who is ChairSBtan
of
the
Senate
Banking

Mr.

Eisenhower

tion

mes¬

in
opposition to standby controls
except in a real big war. The
inferred

President .Elsen¬

the free economy, or

over

the

York

New

amateurs

City

are

this

that

knows

town

Homer

Capehart has both a large heart

spoken against standby controls,
the accepted method of doing

combat inflation short of

call Homer

and

business

war.

parts, so not withthe fact that the su-

court

first

wage

and

vided

that

mittee*'

bill

for

price

brains

could

Administration

tell

new
was

to re-invoke

Accessary

door

second

was

political

learned

that

mittees"

it must

save

the country,

feast

recommend.

In
bill

this
was

form,

hence

"90-dav

can

the

"After

les

don't

trust your own President?"
the argument.

Burney

Maybank,

the

controls,
naturally

1954,

and

the

second

out

the

Truman

Budget

their point of reference and

forget all

about

have got to

it.

come

Then

in with

do them.

ap¬

Europe

Administration

the

aid

give

ness,

tive

hearings,

the

condition
publicly

following

All Campaign

"In

Maybe the Budget can't
(Incident¬

(1)

asked

his

week's

last

what

Banking

press

thought

"loaded,"
it

for

but

hook,

Eisenhower

line,

and

in fiscal

1954.)

balance the

that

fell

all

sinker,

directly

the

(This
given - by

closed

hearing, and

without

There

tax

just eaten

mice in

row.

are

things

way

them

dismayed,
they had previously
as

be¬

from

the

can

the U. S.,

fallen

told
for

how

some

bill,

which

the

they

Demo¬

won't

fear

seen

Second

tion

World

and
of

Commerce

Food

Agriculture

the

United

SurveyOrganiza¬

Nations—Co¬

lumbia

University
Press.
2960
Broadway, New York 27, N. Y.—

paper—50c.
Tariff
—

Idea, The—W. M. CurFoundation for Economic

Education,
Inc.,
Irving^on - on Hudson, New York—paper—500.

Hill,

Eisenhower

the

dread

Adminis-

TRADING MARKETS

could
United Cape Cod Cranberry
National Company

same

Riverside Cement

from

George E. Keith Pfds.

FOREIGN SECURITIES

Polaroid

Co.

Pfds.

Gorton Pew Fisheries

Firm

Cheney Bigelow Wire

Trading Markets

William Wise Pfd.

built up for the need for possi¬
ble later use of controls.

are

They

urging his distinguished col■'

50 Broad Street... New York 4, N. Y.

Capehart-Democratic

Tel: HAnover 2-0050

They
are

didn't
also

business¬

who don't like to promise

things

before

they j

see

just

Wiley Bickford Sweet
Rogers Corp.

Foreign Securities Specialists

under¬

politics.

men
'

fARL MARKS & P.O. INC.

lieutenants

not yet on to the great game

pitch.

Administration

Eisenhower's

Washington, D. C.

by the great majority

Capitol
the

Administration,

Chamber of

Food

tiss

new

Nation—National

Association, Inc., In¬
Building, Washington 5,

Trade Policy Is¬
sues—Foreign Commerce Depart¬

ment,

'when

A Cornerstone of the

the

C.—paper.

turbed

it is

Because there is danger
collapse in France and Italy
if foreign aid is cut, it will not

Fertilizer

Messrs. Dodge and Humphrey,
for example, are not even dis¬

International

The greatest current problem

probably

Fertilizer:

Welfare

ways

stopped.

reduction.

East 38th Street,
Indianapolis 5,.
Ind.—paper—100

vestment

Washington

Reed

calling

Books for Serious
Reading and Study—Survey of 100
titles based on recommendations of

educators, accountants, and others
—Alpha Kappa Psi Fraternity, 111

in Congress

leaders

balancing the Budg¬
et, the politics being to stop the

(5)

cat which has

Business

Churchill.

contended

chances of

Stated.)

move

Bookshelf

one

trickery. They still think
they are playing smart politics
by seeming to be coy about the

(3) In Korea Dulles will not
make

every

Business Man's

cratic

said that this is not what

Mr. Wilson

pretation from the nation's Capital
and may or
may not coincide with
the "Chronicle's" own
views.)

seen
little evidence of comprehension

have

propriations Committee who at¬
the

the
.T'

de¬

Eisenhower lieutenants.

Democratic members of the Ap¬

was

not

going

going. It is not accurate to

report

where he could make cuts.
was

disgusted with the
are

Budget

could

Ike

virtually

GOP

$46 billion budgeted for Defense
by
Truman,
and
didn't
see
story

cause

needed

they

and

See Firings as Key

(2) Charles Wilson. Defense
Secretary, is supposed to have
said

what

three baby

and opined as how it would be

difficult

one

admitting that they prom¬

than

just second hand
question was

was

said

ised

Democrats look

The

over

of
'

of his campaign promises." The

the Budget. There was no

"dope."

now

renege

Committee"

confirmation that Mr. Dodge so
stated. It

take

control

(This column is intended to re¬
flect the "behind the scene" inter¬

Promises

words,"

simply
the

anonymously,
"we
got Eisenhower's boys as

liver.

that it would be difficult to bal¬
ance

sub¬

will

completely
Budget.

said

Democrat

about "Dodge's statement to the
Senate

other

have

ally, President Eisenhower was
conference

attached

was

Otherwise, said he and a score
others privately, the
Con¬

gress

the;

President

Says Ike Has Reneged

happy to note:

are

Community,

the

Euro-..

stantial continued aid.

execu¬

dope has been passed out, as the
Democrats

something
the

support

Defense

| pean
:

the Democratic strategy.

From these and other

A. & G. J. Caldwell

Mr.

new

if Western

even

does not do

positive

comfort

and

heavily cut

Eisenhower

hot

they

could be guaranteed, a case was

the

from

you

stand

-I

the

"nonsense"'

longer:

was

the towel and
smelling salts and

aid

why and how they
to

phalanx did, by lack of positive -

Treasury Secretary Humphrey.
Unless these objectives of the

foreign

displayV—It just looks like ^^
LAZINESS to me, Finnegan!"

Dodge

Banking
Committee,
is
.standing in Homer's corner with

on.

standby

advice

throw

whether
the
Budget could be balanced in fis¬
cal

previous Chairman of the Sen¬

Congres¬

authority,,

got to be fired. They've got to

materially; from Budget

Director

trainer from South Carolina and
ate

going

(4)

Capehart

whether

be cut

em¬

How¬

freeze"

all,

for

need

Senator-

prices and wages. This sounded
better.

pleasure

Having convinced himself of

Senator's

GOP.

and

parently

broad

wanted to know from Mr. Dul¬

political

'Simplicity

where

sional leaders.

ever, Homer hit upon the idea
«f giving the President power to

invoke

Democratic

at the discomfiture of

commit¬

the

barrassment to the

incidentally,

another

Budget."

Budget

Homer's hearings,

contributed

feels

as
"

tended

com¬

bureaucracy

tee to

they

getting all kinds of back¬
the Eisenhower Ad¬

Waver

have

"advisory

advisory

that

press

ministration.

because most

its

Homer
pass
the

alleged

graders

persuade

let

ing from

merely a form of
^bureaucratic
ventriloquism.
a

big

Administration

and

the

were

are

Whenever

told

down to the Capitol,

Democrats

the

word

controls. This particular bill did
net sell. This

timorous

hearings,

and

com¬

him

appeared before Homer's closed

pro¬

the

when

it,

spoke

the

have gone

standby

controls

"advisory

give

uptown,

the

Instead

•

him, Senator Capehart did not
pull in his neck.
Mis

Homer, "nuts."

Republican
political strategy ruled against
prerae

been

for some plush

they

prettily

around these

standing

have

the VIP treatment, and however

winter

warm

would

conferences

Capehart Remains Unconvinced
been

large ego. Since Ike hath

leader

one

layers of the Truman
bureaucrats. These men have

■tk/"

be balanced in 1954.

policy and the completely in¬
dependent use of Federal Re¬
serve powers were adequate in
Mr.
Eisenhower's
opinion
to

It's

iy'XIip,
*

posi¬

help at all. Everybody around

fiscal

that

affair

this

from

offered

and third

basic party issue.

«f the free price system and

President

ma¬

fundamental White House

his

out strongly in favor

sage came

GOP

narrow

both. This would knock

the standby controls.
•

Taft

ator

hower

behalf of

the

jority. And with luck, they may
bring a vote repudiating Sen¬

against

Committee, spoke

at least

prospect of

the

advice

some

"They have got to stop taking

are

delighted. They

are

creating division and dissension

talked

Congress,

Democrats
relish

with that of j
and the
party

exactly

Senator

they will tell you.

see,

pieces.
squares

just wait and

of the Senate, you

Truman

Congressional

up much

their

'S:*>

Jesse

Capehart

keeps

ranks, to sign on his proposi¬
tion, and, by golly, they are

to Congress, both Senator

Out

only if the present

number.of left-,
wing Republicans, plus some of
the neophytes from the GOP
persuaded

competi¬

examinations.

but who will remain
anonymous

The Senator from Indiana has

mitted himself in his first mes¬

Chairman

annum

deals.

whose voice is

al¬

Division

Threatens

;

it may be in¬

per

by taking

service

Throw

Here

loyal i

the

from

place

from

President Eisenhower com¬

sage

entirely

all

Budget

Senator

comes

ego

$10,000

civil

Must

rise

can

less

their jobs even in the

won

velt-Truman

opposition.

fairly from reading be¬
the lines, is that before

tween

his

most

pared to untangle the snarled
up controls of the Truman Ad*

party. What the

not

the Federal payroll

position

that

moting the aims of the Roose¬

WmmWMm

doesn't realize is that this hop¬

the Administration pre¬

responsibility

above

the

44/100ths

got their advancement by show¬
ing their adaptability to pro¬

fOO Die's office foRAiirufte

bet

and

Even the few who once
may
have been genuine civil
servants

idea.

at first to the

safe

above

tive

most hostile

was

first

against

argument

and

genuinely respected by his

man

M-

singed in 1946 as a result of the

civil

specifications have

men now on

their tails

got

ever

remembered how cer¬

Truman

U. S. Senator from
stout-hearted con¬

Capehart,

wfiMwne conmw

fOODtes office

after Korea. At that time Harry

Homer

been

than

things tough for them by ;
coming out hot for controls

under

the

jobs

highest-priced New Dealers.

made

the

their

been written up to throw the
mantle of civil service over the
i

call that in 1950 the Republicans

Capitol in re¬
cent days—but all by Democrats.
One of the delights of the
Democrats

the Democrats re- :

all,

agencies

regard

Later

"secured"

were

service. Job

fa r."*1"""

Deal

specifically
by
the basis of hiring

LERNER & CO.
Investment

—

•

*
<■»

wmmm'mm

Securities

10 Post Office Square, Boston 9, Mass.

Teletype NY 1-971

—

T elephone

HUbbard

2-1990

Teletype
BS 69

Full text of Commercial and Financial Chronicle : March 5, 1953, Vol. 177, No. 5200

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