Full text of Commercial and Financial Chronicle : May 13, 1954, Vol. 179, No. 5324

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""

M

ESTABLISHED IS39

I

2 Sections

n

1

Section

—

Re*. TJ. 8. Pat. Office

MAY 141954
Number 5324

Volume 179

New York 7,

40

Price

N. Y., Thursday, May 13,1954

Cents

Copy

a

BUSINESS ADMIWISTfiAIIUM

mm

EDITORIAL

SeeWe

As

,

This is
we

if it
act

a

were
as

if

not—or more to the

they supposed for

a

Investment Counselor

point, perhaps, to

remarks

of

Truman

Financial

Market," I emphasized the fact that
appeared to have discounted
the

on

page

STANY
Dinner

still

recession

in

probably

order

to

recommend

"the

during the period

Investors

building

issues

on

inent

among

balance.

third

most

with

trast

their

New

York

"B"

each

owned

temporarily,

4.000

attitude

tious

is

least,

or

investment

However, only

cau¬

policy

phrase

a

"temporarily,

bill

tax

which

alliances.

will

be

The

enacted

exact

within

nature

the

Continued

28

one

status

of

Henry a. long

the

previous quarter.
management among those surveyed

Central

stock. Axe-Houghton "A" and
6,000 shares, the latter having sold
period.
Two other funds eliminated

during the

at

number of reasons, including

anti-Communistic

prom¬

Natural Gas and Steel Issues Favored

least"
Anthony Gaubis
the fact that we are
now in an extremely critical stage in our foreign rela¬
tions, and it will be at least another month or two before
public opinion can be crystallized and channeled in the
direction of either taking a greater or smaller part in
the

for

v/ere

blocks of 2,000 shares and 500 shares from their portfolios.

I would emphasize

in order.

now

more

a

Rails

neutral

held

at

In¬

purchases, ranking as
popular group in con-

maintenance of rather fully
invested positions in equities" last
Summer and
Fall, I believe that
or

up

Fundamental

Mutual,

vestors, Boston Fund and Welling¬
ton, in particular, added petroleum

Partly for the °very reasons which
me

the amount of
Increased buying interest
—
with a

approached

oils

group almost
as
popular as the
long-favored power and light shares.

look."

led

were

marked decrease in sales—made this

"new

a

utilities

Although

purchases.
in

which virtu¬

take

to

in groups
equipments

strong favorites, the volume of

selling

of

everybody had agreed was in
prospect. Now that the Dow-Jones
Industrial Average has advanced by
more than 65 points, or roughly 25%,
since this article was written, it is

a

Continued

business

taking

electrical

the

as

However, there was

profit

which had experienced widest price

Stock

majority

the

about

at

in the first quarter of 1954 as during the
1953 with over-all bullishness not

market.

advances.

ally

struggle for domi¬
nance
between the White House and Capitol
Hill; his demand for "party leadership" by the
President; and his effort to brand all interest in
being certain that we are rid of Kremlin spies
and agents as "hysteria" pure and simple may
be what is known as "shrewd politics" in the cir¬
cumstances. Certainly, the utterance meets most
of the requirements ordinarily laid down by the
"professional politician." Whether it represents
the tactics most likely to promote the political
ambitions of the Democratic party this autumn,
essentially

of the

Commercial &

"A Cheerful View of the

continued

purchases

company

pace

appreciably dampened by rising prices in many sections

stocks

York, although calmty spoken, seem to us to be
point. His effort to depict the present Wash¬
scene as

same

final three months of

Chronicle, and which was published on Aug. 27,

under the title,

1.953,

in

ington

the

such

New

in

Investment

noticeable

article which I prepared for the

an

well liked.

are

Several balanced funds lighten debt.

previous quarter.

Industrial Average
In

steels and metals also

gas,

Opinion is divided in the chemical, electric equipment
and retail groups, while tobaccos and rubbers are sold
on balance.
Over-all buying continues at about pace of

possibility of early sizable reaction
of 10% on the average, and 20-30% in tbe more popular
issues, prompted by: (1) the technical background;
(2) uncertainty of long-term earnings; (3) evidenced
historical seasonal market pattern, and (4) previous
discounting of business pickup. Advises investors to
build up buying reserves to participate in anticipated
subsequent rise to about a 400-level for the Dow-Jones

moment that deci¬

Mr.

Rails, natural

Mr. Gaubis suggests

might turn or might be made
to turn on other than the semi-spurious issues
so dear to the heart of so many who make it a
profession to run for political office. Certainly,
there is little in current events to stimulate hope
that this year will in any way prove an excep¬
tion to the general rule.
Not only the general
course
of events in Washington; not only the
attention-diverting behavior of the Army-Mc¬
Carthy hearings; not only the policies of many of
both parties (in Congress; but also the position
taken by the titular leader of the Democratic
party and now the latest utterance of ex-Presi¬
dent Truman, all suggest the difficulty of making
a
"political year" a year' of successful states¬
manship.
recent

By HENRY ANSBACIIER LONG

By ANTHONY GAIJBIS

to expect the politicians to act as

sions this autumn

The

Oils Favored
By Funds in First Quarter

Currently Warranted

It would be futile,

''political year."

suppose,

Utilities antf

Cautious Market Attitude

on

Natural

third.

few

page

issues
were

three months

ous

the

of

next

Gas

ites and steels

continued among the fund favor¬
better liked than in the previ¬

even

as

purchases

Non-ferrous metals,

divided

in

bought,

as were

the

December

on

were

stepped

up

by

one-

which opinion had been

quarter,

currently well

were

machinery and certain auto equipment

Continued

40

on

page

34

SECOND SECTION—Candid pictures taken at the 18th Annual
Traders Association of New York, Inc., at the Waldorf-Astoria
May 7, appear in the Second Section of today's issue.

PICTURES IN
the Security

of

v

Hotel,

on

State and
in

U. S. Government,
State and

Municipal

ALL
*

ON

Securities
telephone:

HAnover 2-3700

Chemical
BANK & TRUST

COMPANY




★

★

★

★

★

Established

★

Members

CALL

U. S. Government

—

American

Municipal,

Chicago

and

Preferred and Common Stocks

MABON & CO.

*

THE NATIONAL CITY BANK

115

N. Y.

Bell System

of

Bonds

Inc.
Trade

RE 2-2820

Teletype NY 1-2152

Chicago

•

Detroit

Miami Beach

Hollywood, Fla.

Bond

Geneva,

Dept. Teletype: NY 1-708

Bond Department

other Exchanges

N. Y. Cotton Exchange Bldg.

OF NEW YORK

and Amer. Stock Exchs."*

Broadway, N. Y. 6

Exchange,

Board

NEW YORK 4, N. Y.

Sixty Years of Brokerage Service

"^Members

Exchange
Exchange

New Orleans Cotton Exchange

All Corporate & Foreign Bonds

*

Stock
Cotton

Commodity

State and Revenue Bonds
^

York

New

Exchange

Stock

York

New

Complete Brokerage Service
*

Municipal

H. Hentz & Co.

MARKETS
ONE

1856

•

•

•

Pittsburgh

Coral Gables

Beverly Hills, Cal.

Switzerland

CHASE

THE

NATIONAL BANK
OP THE CITY

OF NEW YORK

Amsterdam, Holland

*★★★★★★

CANADIAN
BONDS & STOCKS

Public Service Co.
of New

Hampshire

COMMON
Analysis

Pomciiox Securities
Gkporatioal
40

Exchange Place, New York b.N.Y.
WHitehali 4-8161

request

IRA HAUPT & CO.
Members New York Stock
and

111

other Principal

Broadway,

WOrth 4-6000

Teletype NY 1-702-3

upon

Boston

Exchange

Exchanges

N.

Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

(2090)

We

The Commercial ani

The

position and trade in
American

Tel. & Tel.

participate and give their

Central Indiana Gas

Public

they

are

Central Vermont Public Service

Iowa Public Service

"Mighty oaks from little

Hampshire

grow

also

may

which
well

acorns

apply

official

aj

m

of

cently
that

a

stated

of

formations

add

one

oil

Stoclf Exchange
Broadway, New York

as

re¬

The

was

perfected

b y

Stanolind

companies

Hydrafrac patents
royalty basis.

ffipONNELL&fO.
Members
New

York

American

120

Stock

Exchange

Stock

Exchange

BROADWAY, NEW YORK 5

hydraulic

is used

ess

wells.

A

Tel. REctor 2-7815

wells

and

new

of

have

dry

old

and

become

being

Of

fractured.
blood
the

does

nor

course

of

out

one

turnip,

a

fracturing

tions

Trading Markets

to
give
oil
treasures
up
freely that heretofore would not

American Furniture Company

produce under ordinary methods.

Alabama-Tennessee Natural
Gas

wells

the fracturing

increases the production from two
to forty times the usual daily rate.
In most instances the wells de¬

Company

Commonwealth Natural Gas

cline

Company

in

of

weeks, but in the
cases
the resultant

stabilized

production is much
higher than before the fracturing.

Scott, Horner &
Mason, Inc.

In

Lynchburg, Va.
'

who

oil wells drilled in sand

new

•

both

well at

a

an

ex¬

of about $250 a day for 30
days before it reluctantly started
producing 100 barrels of oil a day.

pense

PSI

summer

fractured

flowing at the rate of 10

barrels of oil per hour.

40

being

oil

of

They

well

of

was

dry holes. A

some

Newcastle

in

area

drilled in 1950. The

electric log disclosed

a

tight for¬

mation that should have produced
oil

or

to

and

in

growth

water.

The

its

since

October,

PSI's

oil

1952.

In

fracturing

own

technique developed in the field,
it provides all of the
cialized

fracturing

standard

highly

spe¬

processes

such

hydrafrac,

sand

oil

sand

GERMAN

or

operator

lease

operator

Internal & External

tried

February, 1953, PSI
by

of

in¬

was

of the South Amer¬

one

to

governments

gineer

to

make

send

an

en¬

investigation

an

of its oil fields and discuss

one

possible contract to fracture the
This contract

was

put into

operation in March, 1954.

PSI has

also received proposals from other

South

American

companies.

well

with

reopened

on

an

PSI

Company

day.
//

(9-PP^nheinWi &.

1950

dry

gallons of fluid.

responded

and

Members New York Stock
Exchange

4, N, Y.

is

200

now

ca¬

barrels

a

off too!

a

639.12.

three

bases.

gross

The

$33,819.62

the

|

months

In

the

en¬

taxes.

es¬

ensuing

1953,

business of $232,-

Company charged off

depreciation

earnings

of

had

and

$25,740.65

explanation

fracturing is simple.

of

hydraulic

Modern

ro¬

tary drilling is done with mud be¬

pipe through the drill

high

pressure.

may

assume

before

1954, at the

end of the first five months of the

charged

bit

drill

under

All oil formations

off

$26,470.23

deprecia¬

tion and had earnings of
$23,026.29
before

for

tax.

and

In

addition

PSI

paid

equipped two fine bases

solidly

entrenched

itself

in

industry.

The

outstanding

stock

of

consists of 300,000 shares of
and $100,000

mon

tive

of 5%

PSI
com¬

cumula¬

preferred stock, both traded

over-the-counter.

trial

these
PSI

It

is

compared to

giants

may

be

a

the

privileged

informative

to

small

indus¬
grace

acorn

from

which

the

pect

continued, accelerated rate

a

stockholders

our

is

Established

has

ability in

expanding
Morris Peckman

Home

Chemical.

today, Mathieson

diversified,
producer

As

well

111

to be

and

finished

Trading Markets

GENERAL CREDIT,

con¬

upon

in 1947,

PANTEX MANUFACTURING
SANDY HILL IRON & BRASS

$25,000,000 to $243,000,000, assets
from
$66,000,000 to $339,000,000
and net profits from
$3,000,000 to
$18,700,000. While this has been

by

debt

a

$72,000,000,

this

me

but Alius

the

of

market

30 Broad St., New
B0 9-3242

growth
and

mergers

has

NEW ENGLAND
LIME CO.

been

through
acquisitions.
How¬

it must

be emphasized that
about one-half of these improve¬
ever,

evolved

through

•

nal

may

ex¬

of growth with resultant rewards.

1892

with

capital, Mathieson has
the

over

60

past

nomi¬

•

into

diversified

a

chemical

As

and

list

drug

Of

above,
the largest
part of
this growth
has taken
place since 1947. In that year the
was

agement

primarily

From

this

embarked

an

alkali

base,

man¬

upon

a

pro¬

of expansion and diversifi¬

gram

cation

which

led

to

a

chemicals,

sub¬

more

stantial position in basic

program.

Nelco Metals Inc.,

a

wholly owned
pa¬

rity magnesium and metallic cal¬
cium

under

a

contract

with

the

ATOMIC ENERGY COMMISSION.

over

products.

stated

producer.

com¬

ATOMIC

the

in

subsidiary, manufactures high

a

enterprise with some 18,000 employees in 137 plants
throughout the world, manufac¬
400

metallurgical

engaged

grown,

years,

major

turing

A chemical and
pany

internal

ENERGY
in

York 4

Teletype NY 1-4487

progress,
has not

given due recognition to the stock
as
compared with other chemicals.
Perhaps investors are wary be¬
cause

SOUNDCRAFT

John R. Boland & Co., Inc.

nevertheless

speaks

far

REEVES

increase

equity increased
$26,000,000 to $149,000,000.

from

INC.

of

aprogram

building up the company. Since
then, annual sales have risen from

some

Bankers

(Prospectus Available)

beginning1

Management,

Investment

a

integrated,
chemicals, in¬
-

products.;

embarked

&

Broadway,N.Y,6 COrtlandt7-5681

is

s

n

basic

termediates

Office Tokyo—70 Branches

Brokers

it exists

appears

yet

of

i o

t

its

Ltd.

1897

of oper-

scope
a

publications

Securities Co.,

shown compe¬

Mathieson

write

Yamaichi

to

company

tent

or

current

Japanese securities

on

expected.

A

inorganic

growing organic
chemicals operation based on both
a

9

Company
four

$11.40

earned

in

past

years.

Memorandum

request

on

Dayton Haigney & Go.
Incorporated

75

FEDERAL

BOSTON

10,

STREET

MASS.

coal and natural gas, a position as
of the country's principal pro¬

one

ducers

of

fertilizers

and

other

agricultural

chemicals,
and
fi¬
nally, a major place in the drug
manufacturing industry through
merger with E. R. Squibb.
Current operations can best

be

delineated under three broad clas¬

sifications: basic industrial chem¬

icals, agricultural chemicals, and
pharmaceutical and related prod¬
Basic

ucts.

pages.

an

Call
for

one

that

that

company

As of March 1,

company

ing forced down the hollow
Tele. NY 1-3222

The

All this and the tax charge

The

and

development.
formed

was

was

tablishing

the

pable of producing

Bought—Sold—Quoted




The

success.

the

ad¬

in Japan

phenom¬

enal,

be

To

offices

branch

our

has

growth

of

to

Opportunities

one

that

growth

been

sumer

La.-Birmingham, Ala,

Investment

in-

factor

Established

sand fractured the formation with

3,000

the

ments

Earnings
When

and

and

noting

shareholders'

vited

hole, set pipe and perforated. PSI

well

Phone: HA 2-9766

a

PSI

summer

3,000 pounds of Ottawa silica sand

SECURITIES

25 Broad St., New York

Last

gas.

fractured

joining

and

of the largest

one

manufacturing
dustries,

accomplished

hydrafrac, acidfrac, multifrac.

$244,222.27—

oil

field

now

American

realizes

it

for weeks and finally abandoned .fiscal year
beginning Nov. 1, 1953,"
the well without getting a smell
PSI did a gross of
of

chemical

that this is

one

major
indicated
by

rapid

formed

addition

ican

wires

Direct

Corporation

service

with

were

PSI did

Wyoming

the

N. Y.

NY 1-1557

Mobile, Ala.

Exchange

continued

ducers

the

of

Exchange'

viewing the development

frac¬

gineering the equipment and

intriguing development

out

Chemical

When

flow.

nine months ending Oct.
31,

in

Mathieson

Exchange

Stock

New York 6,

St.,

New Orleans,

Mock

acres

is the making of commercial
pro¬

well

lor a

Stock

York

American

Rector

HAnover 2-0700

New York Cm
New

Company

is

and

sound

In

New

Members

and American Stork Ex<
hunge

Upton

well

independent

an

offset to this well; in two hours it

Another

in

well

to

field

companies,

as

Steiner, Rouse &Co
19

Security Ana Wo
Ladenburg, TlittintPnri & Co.,

as

Abilene,
Texas
and
Newcastle,
Wyoming. The immediate accep¬
tance of PSI by the oil industry,

was

Bought—Sold—Quoted

Members

Members

;7\'' .'

Louisiana Securities

Morris peckman

area

well servicing, com¬
panies since the inception of this
technique. Petroleum Service In¬
corporated
established
bases
at

wells.

started

has

of the major

fore the

oming swabbed

Having*

technical

a

Last

sand

sometimes

a

a

engineering.

producing formations, hydraulic
fracturing is almost a must." Be¬

fracturing technique was
discovered, one operator in Wy¬

LD 33

the

Service, Inc. was
aggressive engineers
experts in this highly

by

were

few

a

majority

Dan River Mills

Tele. LY 62

old

some

from
started

process

put oil in a formation that is dry.
But it does induce tight oil forma¬

On

Co., New York City. ( Page 2)

Petroleum

proc¬

producers after

get

Texas,

formed

modest

a

good commercial
can't

to

instance

one

The

the

use

fracturing

both

on

to

on

number

abandoned

to

pass

of

inches

Brown

L.

licensed
Halliburton,
Petroleum
Service, In¬
corporated and a few .other se¬
lected

&

\

Dallas,

safely
Edmond

has

The

a

tured

Dowell,

Since 1917

Co.,

Chemical Corporation
—Morris
Peckmrm,
Security
Analyst, Laden burg. Thalmann

sixty feet. The sand acts
propping agent.

away

oil

of

Oil and Gas in 1948. Today Stano¬

Rights & Scrip

and

as

County,

frac¬

turing

lind

six

In

formations

Specialists in

(Page 2)

.

from

serves.

Teletype NY 1-583

cannot

production.

much

the

to

nation's

5

oil

unless the oil

(3) Increases the drainage

of recoverable

American

Tex.

Breaks

flush

billion barrels

1920

Member

Garrett

through

through the mud
block in the vicinity of the well
bore by abrasive effect, or form¬
ing a crack in the formation.
(2) Breaks through a low per¬
meability formation to a zone of

hydraulic

may

Corporation

(1)

re¬

fracturing
oil

the

bore

pipe

sand under extreme pressure does
three things.

oil

o r

company

New York Hanseatic

dent,

high pressure. The hydraulic
fracturing with a viscous oil and

to

Service, Inc., a young
in a new industry.
An

company

Upper Peninsula Power

to

clay

a

,'""4

'•A-.'.'-.... -''•••

he, nor
sell the securities discussed.)

forming

Petroleum

Southern Utah Power

to

Alabama &

Petroleum Service. A;«;. ("PSI") —
Edmond L. Browe., Vice-Presi¬

are
porous
to a certain extent.
The mud is forced into the porous
formation from six to 12 inches

Petroleum Service, Incorporated ("PSI")

Rockland Light & Power

BArclay 7-5660

offer

ice-President, Garrett and Company,
Dallas, Texas

Kentucky Utilities

120

as an

EDMOND L. BROWN
\

Iowa Southern Utilities

Established

be regarded,

to

intended

not

are

particular security.

a

Partic'ipnuts and

Their Selections

Mathieson

Citizens Utilities

Associate

for favoring

(The articles contained in this forum

Utility

Public Serv. of New

reasons

Thursday, May 13, 1954

This. .Week
Forum

A continuous forum in which, each
week, a different group of experts
in the investment and
advisory field from all sections of the country

Arkansas Missouri Power

Central

Security I Like Best

Fir.uncial ("

industrial

chemicals,
both organic and inorganic, ac-"
counted for roughly 40% of Mathieson's
is

an

such

sales

in

important
chemicals:

1953.

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocks
FOLDER

of

six

ash, caustic

,

I

I

REQUEST

National Quotation Bureau

on

page

10

i

Incorporated

46 Front Street

Continued

ON

Mathieson

producer
soda

N. Q. B.

New York 4,

N. Y^

iVolume 179

Number 5324

...

The Commercial and Financial Chronicle

(2091)
What Do

You Think?

INDEX

Additional Comments

u Full

on

Articles and News

Employment and Its Dangers'*
More

letters

Editor given

to

—Henry Ansbacher Long

in this issue relative to views (A

expressed by Dr. Carl Wiegand in

—Anthony Gaubis

"Chronicle" of

April 8. Dr. Wiegand, after thoroughly analyz¬
ing the dangers in implementing the full employment philoso¬
phy of government inherent in the "Employment Act of 1946,"
averred that

regimented society and seriously weaken
In

the "Chronicle" of May 6,
starting on the cover page, we
published some of the letters re¬
ceived

in

views

The

connection

with

the

government

and should

can

issue

depression, but that was not his
subject.
He shows that any at¬
tempt to maintain full employ¬

of April

was

It

noted, the "Chronicle" had
previ¬
ously received considerable corre¬

lent

spondence

8.

As

the economic

on

impli¬
cations and consequences of the
jfull
employment
philosophy
of
government inherent in

ployment Act
reason,

of

the "Em¬

1946."

For

this

is

reflection

no

article to say

on

an

the

in

desired

Dr.

to

were

on

his

views

in particular
phases of the

full employment doctrine.
to

Owing
it was

considerations,

space

on

paver

related

any

11

excel¬

—Francis M.

Administration

doubtful
ward

that

it

toward

apparently
next

is

looking

—W.

only

have

come

same

reason,

hand

to

we

Reduction and

DR.

NEIL

Administration, Lehigh University
WiegancTs

article

—Hon.

meas¬

political hypocrisy, the

■i

vacuous

eco¬

nomics,

and

the

1%^

sinister

t i lated.

Those

who

the

errors

of

that comic

blunder,
N R

A,

the

continue dep r e s s

i

Those
the

evil

o n.

who

character of the

Wagner Act were branded as eneiriies of labor. No doubt, Dr. Wie¬
gand

will

be

charged as a sup¬
porter
of
unemployment.
The
non-sequitur smear is now the
Standard

end pressure

The

of

weapon

article

demagogues

groups.

competently
explains the difficulties and dan¬
gers of a governmental attempt to
maintain

period of
is;' not to
fiuthor

very

full

employment in a
serious depression.
It
be

could

doubted
have

that

the

R.

to

specialized in

tion,

but
have

it

had

held

Carl

on

Members New York Stock

Unlisted
3

...

had

a

at

the

isn't

As We See It

he

that

friend

position

Business Man's
Canadian

times

weeks

with

who
a

a

and

each

world

could

the

over

speak

Mutual
NSTA

and

years ago

thought

in America would
was

"Production."

be.

**
8
26

His

—

on

A. Wilfred May

33

Reporter's Report

47

Public Utility Securities

I asked

Railroad

Securities

he

back

came

"That's

just

quickly

Securities Now in Registration
Prospective

Security

and

Security

Offerings

The Market... and

The

Security I Like Best

kitchen sink; it pours out in great
volume." He then went on to say

The

State of Trade and

Continued

on

page

Spencer Trask & Co.-

44

1-1828

Aberdeen Petroleum

32

You—By Wallace Streete

Production in America is compar¬
able to opening a spigot in your

Empire State Oil

17

__

2

___.

Industry

;

Seneca Oil

Co.

4

Washington and You

that with 60 million people em¬
ployed in this country and all the
modern
equipment — assembly

Exchange PL, N. Y. 8

42

Salesman's Corner

trouble.

your

40

Teletype NY 1-1825 & NY

Z2

answer

It didn't strike

as to just what he meant, so I
immediately replied that this
country could certainly produce
everything we could possibly need,

and

HA 2-0270

24

me

said

Singer, Bean
& MACKIE, Inc.

5

Governments

coun¬

problem

our

Machine

39

Notes

Our Reporter

Our
of his visits to this

him what he

6

Fiends

Observations

person.

three

American

Bargeron

News About Banks and Bankers

intelligent

very

H & B

seevral
was

a

8

21

From Washington Ahead of the
News—Carlisle

entire

an

or

Hycon
8

traveled

languages, and he
outstanding businessman
and

*

Indications of Current Business
Activity

spent

different

executive

48

Securities

f

visit, and

anil had

all

and

Bookshelf

Einzig—"Hot Money in London"

a year or so

year

on

practically

try two

NY 1-3370

30

,

Dealer-Broker Investment Recommendations

big

occasoinally visited with me
a
few days.
He was a well

one

York 5
Teletype

Dlgby 4-1680

we

to this country two

came

informed person

On

.•

Cover

^

Bank and Insurance Stocks

which concern
plants in Amer¬

concern,
number of

three

for

(Editorial)

Coming Events in Investment Field___

English

an

He

/•;.

Manager

Trading Dept.

Telephone

time

same

likely

ica, but he died about
ago.

Exchange

☆

JOHN F. REILLY,

Regular Features

South Texas Oil

48

& Gas

*No article this week.
**See

16

"Utilities and Oils Favored

starting

on

cover

i

Reg. U. S. Patent Office

Park

DANA

Place, New York 7,
to

N.

wifiTAM
WILLIAM

ST., NEW YORK 4, N. Y.

niw»
DANA

Thursday,

mirTRFrfT

SEIBERT,

May

13,

Drapers'

Gardens,

as

second-class matter Febru-

Snbecription Rate,
in

United

Possessions, Territories and
Pan-American Union, $48.00
Dominion

of

Canada,

Other Countries, $55.00

1954

Eng-

arr 25,
1942, at the post office at New
York, N, Y„ under the Act of March 8 1879

Subscriptions

PragMnni
President

London, E. C.,

Copyright 1954Jby William B. Dan.

Y.

9576

HERBERT D. SEIBERT, Editor & Publisher

York Stock Exchange

'

land- c/o Edwards & smith.

Reentered

COMPANY, Publishers

REctor 2-9570

i

West End Chemical Co.

COMMERCIAL and

B.

Tracerlab Inc.

by Funds in First Quarter"

page.

FINANCIAL CHRONICLE

26

BROAD

BURNHAM AND COMPANY

23

.___

National

WILLIAM

25

Casaz^a

*

"Full Employment and its Dangers"

Wiegand

Board,

either.

high

a

textile

Sold

15 Broad Street, New

PREFERRED STOCKS

Members New

*

(More Letters to Editor relative to article
by

in thorough ac¬
Wiegand's position.
all want full em¬

and

will
I

—

22

i

Published Twice Weekly

have

Bought

Hughes

■

The

For many years we

20

Balanced Budget: Twin Objectives

a

Rowland

Additional Comments

would like to have perpetual mo¬

what

shown

the

Carolina

we

ployment

were

charged with
wanting- to

of

Dr.

course,

several

ven

Rundt_

myself

with

or

pointed out

showed

find

cord

implications

thoroughly

Neil Carothers

South

of the law

are

J.

Savings Banks and Common Stocks—Alfred J.

Bank, Columbia, S. C.
I

a use¬

ful dissection of that wierd

The

the

on

Employment Act of 1946 is
ure.

The

Of

Dean Emeritus, School of Business

Dr.

Chairman

group.

CAROTIIERS

Texas Gas Transmission

18

,

Tax

Dr.

and, for the
only make

Others will appear in subsequent
issues.—EDITOR.

Transmission

B. M. EDWARDS

can

■provision today for another

Brown

Private Foreign Investments—S.

November.

few of the letters that

a

R.

Our

possible to give in last week's is¬
sue

Texas Eastern
14

___

•

It is

forward

Transmission

Energy—Henry D. Smyth__ 13

seems

1946.

Tennessee Gas

12

:

and the Government Bond Market

looking back¬
of

12

Knight__!

❖

law

a

It

Transcontinental Gas

State Experience in
Defending the Right to Work

serious degree. The New
Deal promised merely to end de¬
pression. Goaded by fuzzy-minded
any

perpetual economic jazz.

Selling Job to Do—Fi;ank C. Pesveyc

a

STREET, NEW YORK

Pipe-Line

the Upward Swing Again!—Lothair
Teetor___

Recent Monetary Policy

very

express

Wiegand's

or

10

"Whither Electronics?"—C. B. Jolliffe___
on

WALL

99

Telephone: WHitehall 4-6551
10

We Have

pleased to Congressmen and pressure group
have been able to publish
Dr. leaders, the present Administra¬
Wiegand's comprehensive analysis tion has promised to
stop any de¬
of the subject and decided to open pression before it starts. In other
up our columns to any one who words,
it promises to maintain
we

6

The Central Banks and the
Money Market—Allan Sproul

Industrial Application of Atomic

that the vague

present

5

,

Business Conditions Looking
Up—Roger W. Babson

We Are

jumble of words called the "Full
Employment Act" does not influ¬
ence

4

do in

a

expressed

our

Cobleigh

\

Obsolete Securities Dept.

by
Dr.
Carl ment disregards the unreliability
Wiegand, Professor of Economics of forecasting, the inadequacy of
at the University
of Mississippi, public works, the inevitability of
■in the paper "Full
Employment inflation, and the probability of
and Its Dangers'' which
appeared destruction of free enterprise.
in

Goes Ahead—Ira U.

love

—OBSOLETES!

Redeemability and the Gold Standard—Melchior Palyi

Trailer

we

*

"VtI

Spectacular Changes in the Banking Scene—Isaac B.
Grainger

economic system.

our

'

•

.

secret

no

about what

______Cover

__

•

employment "at any price might be
short time," it would turn America into a

a

There's

•

Dollar

while full

good politics for

SECRET LOVE

Cover

___

Cautious Market Attitude
Currently Warranted

published in the/

paper

Page

Utilities and Oils Favored by Funds in First
Quarter

U.

S.

Members

of

per

$51.00
per

W V. FRACKEL & CO.

•

States,

year:

per

year.

INCORPORATED

39 BROADWAY, NEW YORK 6

in

year.

"■'*

WHitehall 3-3960
1

Teletype NY 1-4040 & 4041

TELEPHONE HAnover 24300
Albany

•

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Manchester, N. H.

Boston
•




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Glens Falls

•

Schenectady

•

Worcester

Every Thursday (general news and advertising issue) and every Monday (complete statistical issue — market quotation

Other Publication

t

22r!f,J"SErclearlni!s'
state and city news, etc.).
|
.

Other

Chicago

Offices:

3,

111.

135

South

La

(Telephone STate

Salle

St.,
2-0613);

Bank and Quotation Record
Monthly,
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(Foreign-postage extra)
—

Note-On
the rate

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lign subscriptions and advertisements must
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Direei

Wire

to

/

PLEDGER & COMPANY INC.,
LOS ANGELES

3

4

The Commercial and Financial

(2092)

Chronicle...Thursday, May 13, 1954
i

ment of good

Dollar Redeemability and
The Gold Standard

that

ters

it

far

enough,

the

dbllar

has

Steel

The

Palyi, after discussing present status of our currency with
respect to gold convertibility and the question of setting a
new official price for gold,
contends that although our cur¬
rency is linked to gold, our monetary management is free
from the pressure which the automatism of the pure gold
standard is capable of exercising.
Concludes, although gold
standard is no panacea, its return would mean the assurance
of no dollar devaluation and would restore an elementary
freedom
the right to own gold — a right now enjoyed by

if

hasten

we

released

simply

in

State of Trade

unduly, "the gold
country might
out into hoards and

move

become

insists that

this

the

tool

the

of

inter¬

—

Soviet citizens.

to buy it with dollars. And dol¬
lars are notoriously scarce except
They operate with clearing agree¬
to those who already have them
ing in Congress to lift the em¬ ments and import quotas, if only
—and who could do the specu¬
retaliation
bargo on domestic gold circula¬ in
against countries
tion, to reintroduce the gold coin that use those weapons against lating right now, if they wanted
to, by drawing down their dol¬
standard.
Do
them.
lar balances, as mentioned below.
we
need
this
This reasoning overlooks
that Or could
anyone
imagine that
return to past

The Bridges-Reece bill is

pend¬

the

normalcy?
the

time

Can

accom¬

plished
world

in

a

flooded

with

about

Their

?

all,

crutches.

price
which gold

could

Dr.

Melchior

Palyi

or

be

made

the

to

be

devalued

gold

as

bill;

in

proposed

or

the

so-called free

a

market

established, as re¬
quested by other pending legisla¬
tion?

the

It is being said that putting gold
to

return

to

the

gold

mean

that

That

good

the

their

convert

lars.

country

creditors

balances

may

or

argument

runs

will

into

dol¬

be

not

may

against

a

convertibility—it is not,
fact—but
surely not against
circulation

in

this

country.
to gold
withdrawals
on
a
huge
scale,
given our $10 billion short-term
exposed

are

gold,

in French

and other

Again?

It is difficult to induce them

age.

to

provide

is

already

standard.

best

rational

they

arguments.
offer is that it

can

premature

and

unnecessary.

Yet, the idea is spreading fast, and
not only among businessmen. Per¬
haps
the most
remarkable
de¬
velopment
turn
est

is

that

America's

re¬

to sound money, to the full¬

gold

standard is being advo¬
by—British Keynesians.

cated

pound

sterling

We

coins into circulation would

An over-indebted

risk

coin

Gold

on

fashion

or

resuming payments in specie

in

We Are

manner

could the dollar be endangered by
the return to domestic gold pay¬
ments?

available

general public? Should the dollar
McCarran

what

into

Washington authorities frown
upon the resumption of gold coin¬

The

In

"right"

should

of dollars would

owners

inefficient

high-cost peasant agriculture,
in particular, would be bankrupt
without
extremely
"hard"

whatisthe
at

American

per

and

vertible paper
money

industries.

own

incon¬

Above

worried

not

are

capita the rush to convert them
world's
largest. They use such in turn to be invested
"quantitative" methods of trade
francs, Greek drachmas
strangulation partly in order to soft
currencies?
come to terms with opposite num¬
Should We Devalue
bers, and partly to protect their

restora¬

tion be

Swiss

their gold reserve,

pro¬

pitious?
the

Is

Here

Commodity Price Index

comes

economist

brilliant

a

considered

Oxford

the

"living

Buddah"

of Keynesianism. R. F.
Harrod's little book on "The Dol¬

lar"

(Harcourt, Brace) reflects
apparent—by no means real—
change in the expediency-minded
Keynesian souls since the Prophet
departed.
They discovered that

an

is

a

misunderstanding; in

basic fashion, we

are

gold,

on

a

on

securities

in prime commodities back sight?
private
hands, but without jwould

The

trade
to

moving

closer to pound con¬
vertibility — produced a market
price for gold bars actually 210
any

below
of

the

American

$35.00

mint

price

Transport
costs made the slight difference.
At

to

per

ounce.

home, the legal prohibition
in gold does not permit a

venient

notes, unless there is
devaluation. That is

against
trols

to

arise

gold.

would

not

anxious to

were

the

on

However,
work
own

if

con¬

people

the metal. In

short, the dollar
of

an

ounce

is worth 1 /35th
of gold, and domestic

the last residual of dollar-devalu¬

ation-fear that
France

to

the

cover

hoarders'

demand.

The

to

we

would

the

public and
port of coins.
Can

We

The

Convert

dollar's

a

at

of

once

permit the

ex¬

Canadian

"no

gathering of statesmen

fixed

con¬

rate—dis¬

some, arguments

land, they
maintain

without

say.

their
all

Look

;at

Switzer¬

The Swiss cannot
bullion

sorts

of

standard

restrictions.




devaluing the dollar to
one-half, doubling the gold price.

a

mean

gold
producers, and not only to them.
Harrod
ignores
the
enormous

event and

instrument, awaiting
legislation by their respective
parliaments."
In

the

midst

Napoleonic
when

of

the

of

the

post-

troubles,

paper money

most

world

was

off

gold

Soviet

nation

of

mankind

the
soon

link

time,
had

the

the lead¬

mercantile

the
to

rest

of

follow

in

respective price

to foster trade and

in¬

$3

much

Secretary
that
gone

"the

to

answer

Burgess who
free

world

far enough

has

in the

Deputy

be

just

and

not

yet

and

on

does

he

foreign-owned

in

on

the

100%

of

sold

newly-mined
to the

about

no

what

the
more

U.

is

dollar

gold

S. Which
needed

to

shortage—

American

(Eco¬

nomic) Aid! Admittedly, "a rise in
the dollar price of gold minht be
regarded
sense,

as

to

Americans

do

contends
achieve¬

to cash

billion

could

pay

That

Nor

the

profit. Such initial
dollar
"re¬
distribution" may total $15 to $20
billion. In addition, and this is
Harrod's point, an annual $2 to

eliminate

as

the

dollar

is

Having done so
industrial
and

on

hoarders

that

to rehabilitate its depreciated cur¬
rency.

bestow

Russia(!).

standard, the United
Kingdom proceeded single-handed

ing

would

we

to get

not

aid in

the

would
more

a

subtle

that

be15offering

the

to

of something they

really need." Very subtle,

indeed, but how does
,

more

extent

Continued,

an economy

on page

28

Production

Index

Business Failures

the

pe¬

week,

Wednesday of last week over the level of the prior
but notwithstanding this, it continued to be about 10%

under

the

May 3

was

on

ago mark.
Steel output in the week beginning
scheduled by the American Iron and Steel Institute at

year

67.3% of capacity, but revised figures of the Institute raised it to
69.4% (actual) or an increase of 2.1%.
Moderate

improvement

indicated

was

in

the

latest

in

week

total

employment.
While continued claims for unemployment
compensation increased 3% over the previous week, initial claims
decreased by twice that percentage.
The total number in both
groups was below two and a half million persons.
Expansion in
construction and other outdoor work

accounted for the improved

situation.

Unemployment dipped in

early April and has continued

to

decline.

The official count for the week ended April 10 disclosed
3,465,000 out of work. That was a seasonal drop of 260,000 from
the like period in March, the first month-to-month decrease since
last October.

Evidence that the downtrend has persisted since the
government's early-April check was afforded by a spot survey
in a dozen key states over the week-end. This showed that while
the idle

rising slightly in several states, the general trend is

are

downward.
Government figures revealed that total employment in
early
April expanded to 60,598,000—an. increase of 498,000 over the com¬
parable March level. The pick-jap was largely in seasonal indus¬

tries,
sank

such as construction
by 255,000.

In

and

agriculture.

Manufacturing jobs
,

report from the United States Department of Commerce

a

the past

week, it

clined to

an

noted that personal income

was

annual rate of

$282,800,000,000.

This

in

March

de¬

$800,000,000
pace in March, 1953 and down $200,000,000 from the
February rate, compared with a $2,600,000,000 increase between
below

was

the

the two months
is

a

year ago.

running

out

the predicted improvement in the
Age," national metalworking weekly.
an increase in
steelmaking operations now is the
time for it to start showing on the order books.
on

steel market, states "The Iron
If there is to be

Chances

it

will, asserts this trade weekly. The steel wage
30; all-important bargaining starts next
Tuesday (May 18). As the seriousness of the bargaining becomes
apparent many steel users will decide they should have a little
more steel on hand—just in case.
Depending on how the bargain¬
ing goes, this could hasten a reversal in the inventory trend.
contract

are

expires

June

Increased buying should begin to show
books within the next three

then, there

be

or

on

four weeks.

steel company order
doesn't show by

If it

significant pickup in steel until fall. Signing
certainly remove any protective buy¬
ing from the market. Also summer usually reflects slackening of
demand from steel users, continues this trade
paper.
Real progress is being made in the
long and painful steel in¬
ventory adjustment.
Rate of new orders has been increasing.
of

a

may

no

wage agreement would

Some mills

now

find

new

business supporting current operations

for the first time in months.

Producers

are

also encouraged

by renewed buying from some
virtually out of the market. Orders are
part very small, indicating consumers are buying
cautiously. But even placing of small orders is interoreted as a
sign of progress in inventory correction, "The Iron Age" points out.
customers who had

for

the

been

most

Both

steel producers and consumers are
encouraged by the
wording of the four-point program adopted by the Wage
Policy Committee of the United Steelworkers of America. This

mild

is

generally cited

as

this year.

an

indication

that

there

will

be

strike

no

:,/■

The road to agreement will be
long and hard and the final
compromise package will likely add from five to eight cents an
in pensions and

p

Price

Auto

A slight rise was evident in industrial production in
riod ended

hour to industry employment costs.

Keynesian Double-Talk

Dollar devaluation would
colossal bonanza to the

Standard

coun¬

virtually the only
gold."

—after

balances, governmental and
private, would be withdrawn the
moment Congress starts
discussing
devaluation, to return after the

vestments.

"on

pur¬

in suggesting that we revert
gold coinage. We should do so

pose

to

mention

we

try

by the

bring it about; or debated and
disagreed about draft agree¬
ments; or burned midnight oil
and smoked midnight nicotine;
eventually to produce a Gold

order to

because

dollars

indeed, is his

French

levels and

would be

way

disburse

financiers from countries large
and
small
met
anywhere to

would

hazardous

to

billions. That,

benefit

against returning to the gold coin
standard. One objection is that" it
be

found

lending,
spending,
should be

continue

other

and

the metallic

Single-Handed?

not

some

The

convertibility in 1819, as
Economist, Gilbert
Jackson put it,
the

and

the mint

international

vertibility—at
poses

open

do not restart

we

do

then

mono¬

metallic

pre¬

mium would vanish in thin air the
moment

if

and

"■

markets

"collectors'"

induces people in
to
hoard

elsewhere

When Britain introduced

by paying in gold
rather than in dollars. True, coins
still
command
a
premium. But
that is due merely to the fact that
not enough gold coins are avail¬
able

and

that

gold in lieu of dollars.

more

redeemability could not add any¬
thing to that. As it is, one cannot
buy more commodities on the
world

threat of

signficant

available:

dollar

the

a

one

why gold should be made
in order to wipe out

reason

deal

discount

American

average

consider it highly incon¬
to
substitute coins for

Industry

Food

X.

Time

indebtedness, plus the huge for¬
eign holdings of American money,
and
real
estate.
Why
an
"international
bullion stand¬ should
domestic convertibility en¬ gold is important and do not wish
ard." Foreign central banks can
to dethrone it any
longer. On the
danger our reserves if they can
convert dollar balances and notes
stand international convertibility? contrary, Harrod is for restoring
into gold
it fully in its
place, although he
(^bullion) at the New
The only additional threat of a
York Federal Reserve, and export
objects to our handling it. after
gold drain created by free coin
it.
This keeps the dollar
on
a
1928, when we did not play the
circulation would be the demand
par
with gold at
the statutory
"gold standard game" as it should
for gold of the domestic owner
be played: we did not
rate,
except
when
panicky of
export capi¬
dollars. But he is notoriously
hoarders abroad prefer to hide
tal unrelentingly. (How does one
much less worried about his cur¬
their
wealth
in
play the game when the other
yellow
metal
rency than the foreign owner is.
rather than in paper.
side "cheats" by defaulting on its
Actually, the
he fill his pockets debts
recent reopening of the London Why should
with Britain, the leading
with coins, or hoard them, when
gold market—another step of the
creditor nation, setting the
pat¬
his
notes
are
redeemable
on
British Government toward
tern
in
1931?) The implication is
giving
This

and

national

speculator." That is not
so
simple, and one wonders how
a monetary expert could arrive at
such a statement. Releasing gold in
the
U. S. would not provide a
single ounce to the international
speculator because he would have

Output
Trade

Retail

ternational business is being trans¬
acted. But Mr. Burgess

Production

Electric

Carloadings

it is the global standard of value,
in units of which the bulk of in¬

Dr.

t

(F

gone

being the world's
hardest money, with a fantastic
gold reserve to back it. Actually,

By MELCHIOR PALYI

\

■

money." What mat¬

It will include

insurance, and perhaps

wages,

licized guaranteed annual
wage will probably
further study, concludes this trade
authority.
In
the automotive

industry,

improvement

but the much pub¬
be

January-April's

relegated

United

to

States

output ended in a virtual tie as second-best for that period in
history, "Ward's Automotive Reports," stated the past week.
The statistical agency counted
1,959,788 completions for the
first four months, only 7.5% behind the record
January-April last
year (2,121,367) and 7.6% below same period of 1951
(2,118,366).
Weekly records, it adds, will continue to fall in May, despite
setbacks which dipped last week's car and truck
output 2.6% be¬
car

low

the

previous week's eight-month

high of

148,238.

The

past

week's output of 144,380
compared with 167,632 a year ago.
"Ward's" attributed last week's decline to a 3.000-unit
at Plymouth
Wednesday,

loss

Thursday and Friday due to labor
trouble, and lack of assembly Monday at DeSoto and Hudson. In
addition, Packard started a two-week shutdown the past week
and

Studebaker

will

suspend

its

South

Bend

(Ind.)

passenger

assembly and Nash reduce its output rate this week.
However, the new "Bi^ Three" in United States car output—
Chevrolet, Ford and Buick—are more than bulwarking industry
volume and aided by Saturday work are
running away with 63% '
of weekly domestic car
production.
A burst since early April
by Chevrolet has boosted it back
into No. 1 production spot over
Ford, while Buick thus far this '
year leads Plymouth (historically No. 3) by
33%, it stated.
"Ward's" said 533,381 cars and 96,701 trucks were
produced
in April,
compared with 526,000 and 100 987, respectively, in •
car

March.

The

volume was highest since last October's
533,621
industry gunning for another 501,000 this month in
workings days than last month.
Construction outlays in April rose to
$2,800,000,000, up 1%

and finds

car

the

two fewer

Continued

on

page

!
i!

38

Volume

Number 5324... The Commercial and Financial Chronicle

179

manufacture.

The Trailer Goes Ahead

all

the

a

time,

Those

truck

or

hasn't

>■

centage of this has been zooming
—from 14 million ton-miles in

in

a

plug' for the current cinema

1936 to lOOrmillion last year. The
trailer is here to stay—and to go!

"The Long

that

Long Trailer"
the

are

on

wrong

track
should

(or

I

s a

truck?).

y

For

The

trailer is not the

trailer
1944

lack

we

about the

from

era

trailers
motor

it's

—

getting

people

•

worked'

made

are

by

companies.

car

that

out

By A. WILFRED MAY

It

way.

The Stock Dividend and Stock Split

same

old

In

bigger.

the king size trailer was 32

are specialists, and
super-specialist doing

a

business in 1953 of $193
roughly 30% of the in¬
dustry' total.
It makes all the
a

gross

million,

commercial: units

standard

In view of
of the stock

dividend, evidenced in controversy raised at annual

stockholders' meetings last week, its status in England seems

citing, /y-v.V,',V;
In

and

has, in addition, a backlog of $31
million
in military orders,
70%
earmarked for road rolling stock

palace

are

aluminum

eroding rubber

every

Florida.

with

the

hill
No,

e v e r

between

today

in

as

TV,

seems

to loom

to

broad

the road for 20

but generally the ef¬
seven

years.

motor-car pattern

dealer-service

from
74

—it gets off the

centers

local

highway and goes

service

hits

it

before

of independent

and

owned

three

and

Canada.

in

are

to factories than to
ice is

here

and

placement

but to other makes

treat

not

well

was

on

acceptance be¬

fore World War II, when the gov¬
ernment gave it a big boost. Vir¬
tually, everything that rolls was
trailerized by Uncle Sam—gaso¬

In any event, re¬
demand is quite con¬

siderable— above

40,000

units

a

year.

for

Well,

we've

had

a

certain

legislation

nice

little

problems

such

fact

a

favorable cli¬

a

sales.

stable

re¬

is a notably
even in times of

section

placement

earner,

in

most

equipment

sales,

time

Fruehauf sensed this
labor bugs, the future buying is.
in 1948, when it organized its own
bright because of the
big road building program, in¬ (wholly-owned) finance company,
line trailers, tanks for fuels and
Fruehauf Trailer Finance
Com¬
crease
of pallet freight, and two
chemicals, artillery gun mounts, special factors as follows:
pany. This has been no pint-sized
laundry units, and coast artillery
operation, as over $300 million
First of these is operation piggy
radar and ack ack gun trailers.
has been loaned, on purchase con¬
back on railroads.
New Haven
These military applications led to.
tracts, since the outfit began; and
pioneered in this 15 years ago,
many further postwar variations
pre-tax income for 1952 was al¬
carrying truck trailers on flat cars
most $2 million.
—refrigerated trailers for ice
between New York
and Boston
A current look at the financial
cream, fruit juices, vegetables and
and now carries around 40,000 a
facade of Fruehauf is rewarding.
meats; trailers specially built for
year. This thing has really caught
At March 31, 1954 current assets
palletized freight: trailers for dry
on.
Some
western
roads
have
bulk cargo such as flour and ce¬
were $77.8 million against current
taken it up, and N. Y. Central has
liabilities of $25.4 million.
Shar¬
ment; and big daschund models
just entered the field. New Haven
for L.P.G. and milk.
ing the experience of the truck
took only one trailer per flat car;
makers, sales were down for the
In point of numbers also the
bat new cars have been engineered
first quarter of this year, and not
trailer has not flagged.
In 1939 and designed to carry two. There
of
68<* per share was recorded
there were 4,500,000 commercial has been some
objection to "piggy
hauling units, of which only 136,- back" haulage by truckers and la¬ against $1.18 for the same time
stretch in 1953.
Improvement is
€00 were truck trailers. Right now. bor units who felt
put upon; but
now expected
due to more buoy¬
there are over 10 million hauling the overall
saving in insurance
ant
business
optimism,
a
new
units, of which nearly 600,000 are and labor costs, speed, depend¬
lighter
platform
(optional in
truck trailers.
ability, and freedom from road
aluminum
trailer)
offered
in
hazards of fog, sleet, and snow,
150 Manufacturers
April, and a revolutionary high
augur well for the traffic expan¬
cubic
capacity
trailer
to
be
Who makes 'em all?
Well, the sion—and for lots more trailers.
launched in May. Fruehauf. since
answer
to
that is a copy book
Another plus in the future of
1944, has been the Daniel Boone
page out of the private enterprise
trailers is the trailer ship.
There of the trailer, and there is no
textbook. The business is divided
has been a line operating on the valid reason to believe this com¬
among about 150 manufacturers,
Hudson River between New York
pany has ended its growth cycle.
some of them quite small, but all
and Albany for some time; and a
contributing plenty of individual¬
Attractive Yield
new
ICC
application has been
ism, and proprietary initiative.
made for a line with $50 millibn
Last fall Fruehauf added to its
Fact is the main problem here is
in new boats to ply between Wil¬
capital funds via the sgle of $10
not
manufacture,
but
finding
mington, N. C., and New York. million 41/2% debentures conver¬
the roads to run 'em on. Murder¬
Another run, between San Fran¬ tible into the common at 26. These
ous
metropolitan traffic conges¬
cisco and Los Angeles, has been bonds
sell
today at 102}2
and
tion, worn out, outdated and traf¬
in the blueprint stage for years.
point up the value in the common
fic-logged inter-city highways all
These water movements present a now selling at 25 y2 and paying an
operate to reduce the ton-mile
big horizon for trailer growth.
indicated
$2.
The yield at this
efficiency of these cargo laden
level, 7.8%, is surely attractive,
cabooses. Even as it is, however,
Fruehauf Trailer Co.
and suggests that this issue has
it is estimated that 75%
of all
rather been neglected by inves¬
Now, from the general to the
cargo is borne part way by motor
transport.

The trailer-borne

per¬

rather

specific,

talk

let's

about

trailer

It sells at

about

six times current earnings.

A 20-

tors

generally.

dend

payments

offers

pleased to

announce

that

is

now

associated with

in

us

our

Department
'

-

'

LEHMAN BROTHERS




is

fashion

the

to

the

of

course

50%

the

keep

the

ten

next

years

the nominal capital; whereas

on

capital

capitalize the

plus

dividend is

the

reserves

reserves

and

Now

make the nominal

capital £4 million, whereupon, other things being equal, the divi¬
dend automatically

falls to 25% and the market price of the shares

is halved—all of which looks better.
The Political Motivation

The

political attitude toward

company

additional motivation for the Britishers'
device.

As stated

in

recent

a

supplies an

reserves

of the stock dividend

use

article, "You Have Been Warned,"

by Candidus in "The Investors' .Chronicle" of London, socialist"liberal" financial philosophy is firmly committed to the credo

ploughed-back profits, far from belonging to the

owners

holders.

The Opposition's Chancellor of the Exchequer, Mr. Hugh

Gaitskell, is quoted by Candidus: "I still believe that the solution
can

a

only be found by

fair share of the

[in

system whereby the workers

some

reserves

demands]," to show the need for capitalizing

wage

Britain's company community has been using the

dend to

are

reserves.

stock divi¬

gradually lessened extent, coincident with

a

to be sure,

are,

a

have

proved
as

their

way,

impression

was

dividend and

eaten

the cash-plus-stock dividend

on

maintain his equity nevertheless.

proceeds; and
press

widely held that the holder could encash the stock

calculate the yield

But,

thanks

there is

no

exists

On
a

the

real

and

had

too; that cashing in the stock dividend to realize

the apparently increased

yield does actually reduce the sharehold¬

er's proportionate stake in the enterprise.
*

The

nomenclature

also

nominal value
into four

the

new

Splits Too

counterpart of the American stock split, with the same
exists in

London's

City.

After

share of

a

5-shilling nominal value shares, other things being equal,

While

shillings.

the shareholder's real

1

position is of

course

unaffected,

there frequently follows, as here, a psychological fillip.

refuge of the
But

nearly

the

stock

split in London

frequently

as

S.

that

the

because the U.

as

here;

less

stockholder's

K.,

"The last

promoter is to split his shares."

company

is not

because

commissions; because it is realized to
U.

real

a

it

resorted

raises

to

stock

anywhere

exchange

greater extent than in the

equity

left

is

unchanged;

public-relations-minded than

are

are we.

pleased

to

that

announce

trailer

has
in

evidence to show

WEISS

become associated with
our

us

Trading Department

Surely,

made.
as

investment

SINGER, BEAN & MACKIE, INC.

of its

contrary, there still

a

of

neglect

vehicle for trailer

.

logical.

MR. MORTON

grown

would

seem

..

il¬

most
.

,

40

and

the rest of the free world, is generally far

as

spe¬

profits and capital gains that are

£ 1

selling in the market at 80 shillings has been split

shares will sell at 20

the

opportunity for net

to

clarification, it is becoming realized that the cake cannot be

fast unit-wise as trucks,

that the trailer is at the end

de¬

press

bunking of its advantages to the shareholders. Thus, formerly the

share¬

of

future

given

accumulated thanks to their moderation

common

to

that

and en¬

titled to remuneration, belong to the workers and not to the share¬

transport form; but they

Fruehauf
I"

Mayll,l9U.

to

sodden.

or

thrice

trail.
.

in

dend of

May

Fruehauf is by no means

Trailers

cialized

and

Public Utilities

the

and

unattractive

(formerly Vice President of The Chase Rational Bank)

is

market

enterprise under the direction of
Mr. Roy

MR. PAUL F. CLARKE

the

on

assurance

some

holders;
are

the London

record of sustained cash divi¬

year

We

in

actually equivalent to only 25% on the capital plus reserves.

Everyone knows how important,

occasional
is

.

here,

as

dull business.

as

size, road taxes, and

on

well,

as

Fruehauf

future

Wilfred

on

garages) serv¬

Further, this service and part

chat about the past of the trailer;
what
about
the future?
Apart
from

tending to create

A.

of kin

given not only to Fruehauf,

mate

Railroad Customers

these

At

nearer

dividend,

ploughed back into the business another £2
million, it may today find itself paying a divi¬

divisions, in the U. S.,

(which

worth

:V

,

nominal

and

sales

operated

stock

capital in proportion to the real
capital, discrepancy having arisen because of
the continued payment of regular percentage
dividends.
For example: If a
company ten
years ago had a nominal capital of £2 million

It\
own—complete and direct
factory to owner. It has

and service

into

distribution
the

the

has its

trailer gets old and weary,
it doesn't exactly go out to pasture
a

followed

the

war. But now they use the device far less fre¬
quently, people generally having forsaken the
belief that they offer any really great advantage.
The dominating purpose of stock-dividend

organizations.

the scrap yard.

scheme of transportation.

the road

been

you

we

trailer

or

have

not

of

luxury

truck

on

When

and

trailer, but the
loaded one; and do not discount
its
importance
in
our
overall
The

25 years;

that

fective life is around

ahead
on

around

nook,
built
Cobleigh

still

screens,
a
b reakfast

such
Ira U.

with

running water,

has

Fruehauf

Britain

distributed supplementary to cash dividends or
as alternatives thereto, was quite frequent pre¬

feet long;

anywhere from $3,000 to $12,000
for a trailer. Some vintage units

in England

—

public's current interest in the instrumentality

our

today you'll see 'em 40 for coast defense electronics and
what
we'l 1 feet
long and operating techniques fire power, and to deploy our
discuss
today are making them run fewer empty newest weapon, the guided mis¬
i s n o rolling miles.
Price-wise, you can pay sile.
rubber tired

•

•

seem

Trailer makers

this

suspect

of

Lots

think

to

be a sneaky way to get

who

as

pioneer in the

Company.

special transportation unit which is
truck, what a barge is to a tugboat; plus a few financial
facts about Fruehauf, largest trailer manufacturer.

may

here

let's talk

so

Fruehauf

piece

We can't talk about

makers

dray to trailer—Fruehauf Trailer

Enterprise Economist

A roadside view of the
to

the

leader and

By BRA U. COBLEIGH
K

5

(2093)

Exchange Place

HAnover 2-0270

New York 5
NY 1-1825 & 1-1826

6

(2094)

May 13, 1954

The Commercial and Financial Chronicle... Thursday,

the impact is

ultimately felt in all
banking system.
Consequently, every bank, wher¬
ever
located, must adjust itself
eventually to over-all policies of

Spectacular Chanses
In the Banking Scene

the

By ISAAC B. GRAINGER*

fiscal, financial and economic changes
1933, and points out bankers during the period have
faced a never-ending parade of new factors
affecting their

lection

Reserve
.

anization

to

be

difficult

a

time to

a

thing
all

cover

of

the spectacular changes which we
have viewed in the national eco¬
nomic

but

scene,
will

I

mention
of

few

a

them.

the

At
of

end

1933

Fed-

our

eral

debt,

after what

we

considered

to

be

alarm¬

an

ing increase of
16% that year,'
amounted

$24

to

billion.

Now it is $273

billion.
B.

Isaac

President's

Grainger

F

budget

for

The

the

d

e

then

e

called

for

billion

with estimated

expenditures

a

r

fiscal

1

year

of

$9.4

receipts of

$3.3 billion; whereas, for the 195455 fiscal year the Federal

budget
anticipates $71 billion expendi¬
tures and $68 billion receipts.
Money in circulation in the same
period has jumped from $5.8 bil¬
lion

to

$31

of

The

-

This

in

contrast

is

lot

a

depreciated

corporate tax rate

13%%
rate

billion.

despite its

money
value.

then

was

the

to

present

of 52%.

At

the end

was

financial
still

1933, the nation

from

turmoil.

shocked

position.

were

confused

regulations
which

few

tunity

to

by

based

before

its

December

we

rules and

had

an

oppor¬

understand

or

enactment.

1933

of

legislation

on

study

were

addition,
new

us

of

uncertain

In

of

period

a

Bankers

and

'their

was

a

In fact,
period of

transition in which many reforms
were still in the
very early stages
of

development. But even then,
imagination was not suffi¬

one's
cient

to

made

foresee

the

changes

in

great

the

man-

financial

climate in which

we

erate.

there would

full

I

suppose

agreement

in

to

were

op¬

were

Carolina

its

derstood
North

banks.

importance
when

at the end

of

it

is

1933

Carolina

How¬

be

may

un¬

realized

that

deposits of the

banks

averaged

times capital funds, and de¬
posits of the 25 largest banks of

the country were 6.1 times
capital.
At the end of
1953, these ratios
had

risen

to

13.2

and

12.9,

re¬

this

necessary

in

follow¬

fect

with

of

the

such.

a

large segment in short-term obli¬
gations, has created an entirely
medium

for temporary bank
investments and a new method of

new

daily

adjustment

sitions.
funds

play
hill

of

reserve

po¬

surplus

daily purchases
the

excess

banks,

Because

reserves.

of

the

of

excess

other

reserves

leveled

so

comparisons with 20

proper

of

by banks,

now

reserves

total
of the system are

that
years

eral

Deposit

tion

has

Insurance

had

the

Corpora¬

beneficial

a

public

attitude

banks, but it has added
burden

expense

Federal

collateral
ment

hours

of

made

our

cated.

all

upon

terms,

extra

and

have

not

operations less compli¬

The

practice

improved

of

amortiza¬

the

character

mortgage lending and the ac¬
ceptance by banks of the concept
of
personal and consumer loans

given

medium

us a new

for

the

and profitable

employment

of

deposits.
The
eral

changes in Fed¬
policy have been

Reserve

Whereas

prior to 1934

change

credit

was

in the

control

largely confined
rediscount

rate

—normally a psychological factor
since
then, operation of the

what
a

now

to

appears

comparatively

have

simple

formula

for
conducting day-to¬
day operations 20 years ago.

Bankers

have

faced

a

never-

ending parade of new factors af¬
fecting their business and I will
comment
we

the
in

upon

have

had

first
1934

serve

of

One

Congress

to pass

and

banking

early

ernment

pansion

debt.

of

but

that

The

in

of

new
none

the

has

as

changes
*An
the

Bankers

Pmehurst, N. C., May 10,

the

ex¬

pressing




reserves.

or

Many

contrac¬
are

un¬

aware
that not
until
1935
was
there permanent legislation mak¬

ing

permissible

maximum

the

reserve

doubling of
requirements.

This power was first exercised in
1936 and we have almost become

taken

place.

ample,

reserve

7%
of

of

before

non-borrowing cus¬
lending to other prime
by purchasing the latpaper
in
the
commercial
market.
This process has

paper

also

serve

creased

deposits for

at

13.

That

to

14

had

in

effect

an

bank de¬

upon

ply of commercial
available
had

formerly

paper

those

for

sup¬

banks

which

direct relations with prime
borrowers.
1
no

Reserve

In

from

stand

Requirements

mentioning

factors

have

in

not

few of the

a

injected

banking
the

into

the

last

from

13%

at 22%.

to

in

percentage
and

City

were

26%

now

re¬

in¬

20

years,

Although it is

more remote a bank
Reserve City the less is
immediate effect of
changes
a

monetary control, nevertheless

I

to

separate

the

unfavor¬

able, but I would like to comment
upon

one

two

or

affect all

of

matters

which

either directly or
The first item is that

indirectly.

ington since the Republicans supposedly came
in 1953. To say the least they did
not come in emphatically and instead of seeing
a

new

of politico lawyers and parasites,

group

those who have been successful since 1932 have

profitably with the

continued to carry on

a

same

us,

requirements.
The
schedule of reserves in

present

the
F'ederal
Reserve
System is
quite outmoded and should be re¬
vised.

A recent study

York

Clearing
Federal

by the New

House

Reserve

ined,"

which

instructive

I

entitled,
Re-exam¬

recommend

reading,

gives
views on this

those

of

helpful
sub¬
I certainly subscribe to the
concluding observations of this

very

ject.

study

wish

and

I

could

In

requirement

serve

changes

over

mending

widened

a

ment

increases

destructive

the

postwar

been

be

can

and

of

grant

authority —
the wisdom of fixing the
ments by law as was the
prior to 1933.
Reserve

ad¬

A

they

have

and

ine

fundamentals.

serve

requirement increases since

the

public

rlotvnnclfflhl v

lisup

stopped inflation but have
modated

grossly

a

in

crease

the

holdings of government
Clamping
higher

is

solution to

no

It

never

was

that
be

requirements

reserve

used

as

have

Well,

why this is

but

so

it

is

the

the

se¬
re¬

banks

myself,

figured

that with

all

What I think is significant then about the Democratic
jubilee

here,

gathering of great rejoicing and faith, was that there was
a depression, a
recession, no ridiculing of the term
"rolling readjustment." The subject having to do with men and
jobs simply wasn't touched upon.
no

a

mention of

Instead,

policy.
orators

Democrats

is

sin

among

theme

allies,

the

means

Dulles

The

gotten

any

in

the

bearing

upon

which

maintain.

it

the amount of
should

One of

be

the

re¬

off

of

Republicans,

penalties inflicted

upon banks in
so-called Central Reserve and Re¬

Cities, has been the higher
Continued

on

page

26

I understand it,

as

are

thing,

depression,

or

the

out

than giving Dean Acheson,

more

international

domestic

law

though,

affairs,
or

of

window

November, and have

is

they

firm

business,

into

get

a

rival to

a

place in

a

that

the

have

Democrats

given

in

war

have

hope

up

of

a

unemployment situation, realizing

an

will

and

gone to

have

validity

no

foreign policy for

Indo-China

slightest chance in the world

an

they haven't, to

by

issue.

next

Unless

mind, the

my

this.

on

The way in which Eisenhower and Dulles have handled world
affairs may be delightful subjects for the intellectuals to bat back
and

forth.

will

be

reason

decision

under

with

and

nowhere,
the

The

that

no

Democrats

is

no

doubt

considerably
has

been

on

this,

fighting

that

get

an

we

I

now

stay

issue here

particular

ho

we

out

convinced,

am

for

fighting

are

of

they

that

comforted

counts.

the
It

end

looks

going to have
is usually a

Indo-China.
are

sunk, I

Democratic

the

professionals

McCarthy-Army

the

it is

doubt.

to

reason

no

have

spectacle.

a

fact that
as

this.

voters

that

great store by such things

it

is

as

though the Republicans, next November,

that in

pocketbook

their

favor.

of

nerve

But

it is

a

the

fact

that

are

there

recession from the Administration in the first off-year

elections after it
have

by

utterly disgusting there is

professionals always lay
in

the

in many political campaigns and

I have worked

don't

were

goal in Korea;

course,

expect to

voters

we

'

There

But

the

definite

think.

the

of

Truman

assuming, of

forced

severest

foreign

foreign affairs, I don't know what it is.

important

recession

That it

Likewise,
I
question the concept that the geo¬
graphical location of a bank has

of

Democratic

them, they know not where to go.

among

the part of the

on

the

upon
our

they have destroyed the "bi-partisanship" in foreign policy,

and if that

they

launched

disunity

said, confusion

A terrible
is that

the

There

credit, and I doubt
using this device

of

|

their

lofty ideals and
Administration
couldn't

the

programs,

would be sunk.

requirements should

purpose.

picture the

Republican
a serious
unemployment situation. They could talk until
they were blue in the face about having reduced taxes, having
gotten us out of Korea and even, having passed the St. Lawrence
"Seaway," but if there was an unemployment problem they

If

problem."

originally intended

the

weather

of

wisdom

serve

I,

"dynamic"

been

the

to

understood

never

so-called liberal propagandists have painted of them.

instrumentality for

control

a

1

ago

I think is ominous from their standpoint.
A few months
they were singing happily about the forthcoming depression.
They talked gaily about the ineptness of the Eisenhower leader¬
ship and the general irresponsibility, of the Republican Adminis¬
tration, but underlying it all was their happiness over the forth¬
coming
depression.
Such
"nonpolitical, objective
minds"
as
Senators Douglas and Morse were preaching this. These two men,
you are to understand, are not politicians in the usual sense of
the word.
They are distinguished from their fellow Senators in
that they are above the noise and conflict and intrigue of the
great game of politics and only want to serve their country. I

an

the

that

on

in¬

Reserve

curities.
serve

JlOt

accom¬

excessive

Federal

re¬

have

which

away

The

there

ago

we

Congress

departing

this writer would have thought their con¬
fidence fully justified. But at this Democratic gathering there was
a rather significant change of tune on the part of the Democrats

require¬

lruiu

banks'

'

weeks

the management of

herring, diverting the
of the
authorities, the

attention

1

few

red

a

the

-

Administration

Eisenhower

sional elections.

practice

In

to

Republican politico lawyers and lobbyists have
are still in busi¬
ness
and apparently doing well.
It was quite apparent at the
recent $100 a plate dinner gathering of the Democrats that these
counterparts are quite confident, not only of remaining in business
but of being practically back on top of things after the Congres¬

require¬

vicious

attuned

been

but their Democratic counterparts

Foster

a

the

of

case

suggests

instrument.

period

the

to town

come

quote

the past year—so far from recom¬

has

been few changes.

them in full.

However, I will give
you one of the paragraphs which
exemplifies the conclusions: "The
history that has been made of re¬

business

whose

Administration.

for

some

Carlisle Bargeron

political overturn. Ordinarily there is
change in fortunes on the part

tremendous

reserve

serves

and

new

commercial

attempted

favorable

for

New York

requirements*

most

banks

true that the

the

are

posits, and has restricted the

penal¬

In
1933, for ex¬
requirements were

Carolina.

stands

now

severe

Reserve member

increased

was

the

demand

the

North

is from

Association,

1954.

of

increases which have

brought

Grainger

day-to-da.y expansion

to

is evidenced by the
in the capital structure
Mr.

tem to powerful influences in the

ties of such

maintaining capital

address by
North Carolina

changes in reserve requirements
subjected the banking sys¬

have

accustomed

adequacy. This problem has not
escaped your attention and treat¬
ment,

and

re¬

responsibilities
more

committee

the

gov¬

resulting

deposits

many

us,

impact on
just as did

increase

was

This

its

system

of

the Gold Re¬

revalued.

had

tremendous

than

contend.

Act, under which gold

valuation

for

to

Acts

was

sterilized

about

few with which

a

market

open

tion

busi¬

our

where

ness

—

ing
been

be

of the pe¬

one

ministrative

effects of

great.
to

This is

paper

corporate

us.

of

has

by

developments in

"The

of

wages

employment

has

effect

toward

an

regulations governing
loan margins,
install¬

credit

tion

commercial

held

borrowers

of

impracticable.

ago are

upon

of

likewise

treasurers.

a new

the

They are all, the Democrats and the
followers alike, confident that they will
well back in the saddle in a few months.
We have had an unusual situation in Wash¬

living.

camp

national

percentage

a

into power

Operation of the Federal

has
brought into
device which, with the
market, has been the biggest

of

more

,

in

were

There is little doubt that insofar as the House is
concerned they expect to be back in control next November. The
Washington politico lawyers and the parasites peculiar to Wash¬
ington whose livelihoods depend upon the
Democrats, just as other politico lawyers and
similar parasites depend upon the Republicans,
have no thought of reducing their standard

Government bills outstanding are
held
by corporations.
A large

market

influence in reducing the amount
of

more

inter-district

of

recently in Washington

meeting

Democrats

The

cocky mood.

autographed photographs on the wall of their
offices.
This is not the usual result of a

ter's

debt,

of the News

By CARLISLE BARGERON

=

ket and upon bank deposits. It is
estimated that 80% of the U. S.

posits has dictated

invest¬

method

the government bond mar¬

on

tomers

government

items.

of

purchase by corporations of
temporary investments awaiting
payment dates has had an ef¬

lending and operating procedures.
big increase in savings de¬

The

new

handling

tax

culiar

a

mech¬

have speeded

programs

The

Competition
b y
government
agencies, too numerous to men¬
tion, has caused us to reorient our

Composition

reduced

money transfers.

is

policy.

been

addition

In

internal

spectively.

ment

has

days.

efficient

5.9

be

gathering
that the studies necessary
today,
for all of us to keep abreast with
the fast-changing scene, are
quite
overpowering in contrast to those
which

North

Washington

Ahead

re¬

Federal

private bank wire, which is
extensive, have brought a

Creation of the permanent Fed¬

of

emerging

of

ever,

maximum
two

up

inequitable,
"big change" in banking.

short

been

the

The Federal's wire system and the

trol. Holds formula for assessing members of FDIC
and cites employee relations as the
would

has

1939

on checks from seven
days to three days, and since then

instituted

so

In

availability
the

It

checks

System cut the maximum

factors, the Gold Reserve Act, the
Federal Deposit Insurance
Corporation, and the alterations
in Federal Reserve policy. Comments on reserve
requirements
by the Federal Reserve Board, and expresses doubt
of wisdom of using these requirements as means of credit con¬

in

of

markable.

new

as

From

bank.

course,

Mr. Grainger reviews

Lists

central

*

are many other factors, of
affecting banks and their
ability to serve the public. As an
example, the speed-up in the col¬

Vice-President,
Trust Company, New York

since

business.

the

There

Executive

Chemical Bank &

of

segments

comes

in. "And in this instance, the Republicans

enough strength in either House

single member.

or

Senate to lose

In fact, in the Senate, they've got to gain.

a

Volume

179

Number 5324 ...The

Commercial and Financial Chronicle

(2095)

:

KEW ISSUE
May 12,19 54

$100,000,000

CONNECTICUT
Expressway Revenue and Motor Fuel

Tax Bonds

Greenwich'Killingly Expressway, First Series
Payable solely from the Expressway Reserve Fund of the' State and
thereto

as

Interest exempt, in the
opinion

of Bond Counsel, from present Federal

income taxes under
The bonds, their transfer and the income therefrom

under its

or

Dated

existing statutes

(including

profit

any

the opinion of the Attorney General of Connecticut, from all

exempt, in

payable

moneys

described in the Bond Declaration

on

the sale

taxation

or transfer thereof) are
by the State of Connecticut

authority.

January 1, 1954

Due

January 1,

as

shown below

Principal and semi-annual interest (January 1 and July 1) payable at the principal offices of the Manufacturers
Trust Company in the
Borough of Manhattan, New York, N. Y., and The Hartford-Connecticut Trust
Company, Trustee under the Bond Declaration, and the office of the State Treasurer, in Hartford,
Connecticut. Coupon bonds in the denomination of $1,000,
registerable as to principal only
and exchangeable for fully
registered bonds in the denominations of $1,000, $5,000,
$10,000 and any whole multiple of $50,000, at the principal office of the Trustee in
Hartford, Connecticut, and at the expense of the holder, as provided in the
Bond Declaration.

The bonds

are

subject

to

redemption prior

forth and in accordance with

maturity

to

terms

on or

after July 1,1959,

and conditions described

in

the redemption prices set

at

the Bond Declaration.

AMOUNTS, RATES, MATURITIES AND
Amount

$

Rate

250,000

21/2%

E)iue

Yield

Amount

1962

1.60%

$2,000,000

Rate

2/4%

YIELDS OR PRICES
Yield

Due

Yield

1973

2.40%

Amount

Rate

.$3,900,000

Due

1984

2/8%

300,000

2l/2

1963

1.70

2,250,000

23/4"-

1974

2.45

4,100,000

450,000

1964

2/8

21/2

1.80

2,400,000

2/4

1975

2.50

4,350,000

2/8

or

Price

2.80%

1985

2.80

1986

2.85
2.85

.

600,000

21/2

1965

1.90

2,650,000

2/4

197 6

2.55

4,500,000

2/g

1987

800,000

21/2

1966

2.00

2,800,000

2/4

1977

2.60

4,700,000

2/8

1988

100

1,000,000

21/2

1967

2.10

3,000,000

2%

1978

2.65

4,800,000

2/g

1989

100

1968

2.15

3,100,000

2%

1979

2.65

5,000,000

2.90

1990

100

1969

2.20

3,300,000

,27s

1980

2.70

5,200,000

2.90

1991

100

1,100,000

21/2

1,300,000

21/2

1

1

1,500,000

21/2

1970

2.25

3,500,000

2/8

1981

2.70

5,400,000

2.90

1992

100

1,650,000

21/2

1971

2.30

3,650,000

.2/8

1982

2.75

7,300,000

2.90

1993

100

1,800,000

23/4

1972

2.35

3,800,000

2/8

1983

2.75

7,550,000

2.90

1994

100

(and accrued interest)

The bonds are issued under the terms of a Bond Declaration
entitled, "Bond Declaration Authorizing $398,000,000 Expressway Revenue and. Motor Fuel Tax Bonds <sf the
State of
Connecticut for Financing the Greenwich-Killingly
Expressway, and Establishing the Terms of Issuance of Bonds of the State Pursuant to Public Act No. 411 of the General
Assembly
of the State of Connecticut, January Session of 1953", made
by the Highway Commissioner of the State of Connecticut and dated April 27, 1954. The
proceeds
of
the
bonds
are
to be applied by the State toward
financing its costs of construction of the Greenwich-Killingly Expressway of the State as described in the Bond Declaration'.
I

The bonds

These bonds

are

not

general obligations of the State of Connecticut for which

its full faith and credit

pledged.

is

offered when, as and if issued and received by us and subject to approval of legality by the Attorney General of the State
of Connecticut, and by Storey Thorndi\e Palmer
& Dodge, of Boston, Massachusetts, Bond Counsel
for the State, and Hawkins, Delafeld & V/ood, Hew Yorfj, H- T., Bond Counsel for the under urriters. Such
offering is not made
hereby, but only by means of the Offering Circular, copies of which may be obtained from such of the undersigned and other underwriters as are
registered dealers in this State.
are

Lehman Brothers

Blyth &. Co., Inc.

The First Boston

Halsey, Stuart &. Co. Inc.

Drexel & Co.

Kidder, Peabody &. Co.

Corporation

Harriman

Ripley & Co.

Smith, Barney &. Co.

Incorporated

C.

J. Devine &. Co.

Merrill

Lynch, Pierce, Fenner

Equitable Securities Corporation

& Beane

F. S.

Moseley & Co.

1

&.

Hutzler

Union Securities

Allyn and Company

Bear, Stearris & Co.

Incorporated

Incorporated

Paine, Webber, Jackson & Curtis

Shields & Company

B.

R. W.

■ -■

■

J. Van Ingen &. Co. Inc.

Estabrook &. Co.

Stone &. Webster Securities Corporation

■;

-•■■■■■■■■

'

R. L. Day &. Co.

='

G. H.Walker

&. Co.

&

Sons

Coffin &. Burr

Cooley & Co.

Incorporated

Lee

Higginson Corporation

'

Hartford

First of Michigan Corporation

John Nuveen & Co.

Putnam &. Co.

(Incorporated)

Hartford

Ira Haupt & Co.

Chas. W. Scranton &. Co.

I

■

■

New Haven

Pressprich & Co.

Hornblower

&

Weeks

Braun, Bosworth &. Co.

Incorporated

Incorporated

& Co.

Ladenburg, Thalmann

Tucker, Anthony & Co.

—

Co.

A. G. Becker &. Co.

A. M. Kidder

■

&

White, Weld & Co.

Hemphill, Noyes &. Co.

I

Alex. Brown

Lazard Freres

Phelps, Fenn & Co.
'

Corporation

Blair, Rollins & Co.

Glore, Forgan & Co.

<

I

Salomon Bros.
A. C.

Eastman, Dillon & Co.

& Co.

Dean Witter & Co.
*

.

Wood, Struthers & Co.

Bache & Co.

Bacon, Stevenson &. Co.

Barr Brothers

&

Co.

William Blair &

Company 1 J. C. Bradford

'

v

Dick &. Merle-Smith

R. S. Dickson &.

'

■

Company

O

'

-<■}■

'

.

Francis I. duPont

&. Co.

The Illinois

Incorporated

& Co.

Central Republic Company
(Incorporated)

Company

Kean, Taylor &. Co.

,•

Laird, Bissell & Meeds

'
.

Aubrey G. Lanston

&. Co.

W. H. Morton & Co.

Incorporated

Weeden & Co.
Incorporated

Roosevelt

Corporation

Incorporated

Hirsch &. Co.

F. S. Smithers &. Co.

Van

E. F. Hutton &.

& Hill

Boeton

Company

Alstyne, Noel &. Co.

~

Andrews &. Wells, Inc.

Bacon, Whipple &. Co.

Byrne and Phelps
Incorporated

Dwinnell, Harkness

Hartford

Hayden, Stone &. Co.

Shearson, Hammill &. Co.

'

i

Courts &. Co.

& Cross

Incorporated

American Securities

'

Coburn &. Middlebrook
Incorporated

Reynolds &. Co.

Incorporated

Wertheim &. Co.

Eldredge & Co., Inc.

Geo. B. Gibbons

&

Company

Incorporated

King, Quirk &. Co.

Carl M. Locb, Rhoades &. Co.

Clark, Dodge & Co.

Hallgarten & Co.

Laurence M. Marks

Incorporated

R. H. Moulton &.

Company

San Francisco




Wm. E. Pollock &

Co., Inc.

Riter & Co.

Tripp & Co., Inc.

R. D. White &

Company

Lincoln R.

&

Co.

Young & Co.

Hartford

7

8

'rent

issue

tal in

Dealer-Broker Investment

of

discussion

a

with applicable working capi¬

COMING

prices, and some switch suggestions.

of market

excess

containing

"Market Pointers"

of

Automation and lists of stocks

Pepsi-Cola—Review—Ira

Co.,

&

Haupt

Broadway, New

Ill

EVENTS

York 6, N. Y.

In

Recommendations & Literature

Snap-on-Tools Corporation
Office Square,

mentioned will he pleased
parties the following literature:

send interested

to

Report

—

Lerner & Co., 10 Post

—

May 12-14, 1954 (Boston, Mass.)

Boston 9, Mass.
—

tion

May 14, 1954 (Baltimore, Md.)

Common Stocks—List of

Canadian

New York

ing at the Country Club of Mary¬

representative issues, with

land.

Wall Street,

price ranges—A. E. Ames & Co. Inc., 2

recent

Federal

sociation 19th annual summer out¬

3070 Hull Aveune, New York 67, N. Y.

pany,

Original Issue and Transfer Tax Rates—

Booklet—Registrar and Transfer Company, 50 Church
New York 7,

at

the Japanese Stock Market—In
Bulletin"—Nikko Securi¬

LIBBING

AD

Co., Ltd., 4, 1-chome, Marunouchi, Chiyoda-ku, Tokyo,
Japan.

Ltd., Ill Broadway, New York 7, N. Y.
& Co.,

Stocks—Bulletin—Sutro Bros.

120 Broad¬

in

quarter of 1954—Laird, Bissell & Meeds, 120 Broadway, New

showing

an

a

National

up-to-date com¬

Committee do

Advertising

preciate his support.
The
thought now

to

occurs

me,

would

and

6.

N. Y.

in

Also

the

issue

and

discussions of

and

current foreign

Utah

Uranium

Investment

Trusts in

May 21, 1954 (New York, N. Y.)

one

for

Economy

would be happy to hear

data

Lisbon

on

June 4,

all

the

at

1954 (Baltimore, Md.)

Bond Club of Baltimore annual

outing and golf tournament at the

Elkridge Club.
June

from any of our members that are mak¬

4, 1954 (Chicago, HI.)

Bond Club of Chicago 41st an¬

HAROLD B.

Uranium,

outing

Montclair Golf Club.

to the entire mem¬

prove

annual

Toppers

This

ing efforts to get business.

Current

—

after

time.

members to follow in lending a
worthy cause.
Whom, next may
we
write up as one of our backers for our
1954 campaign for our Convention issue?
Of
course, it need not be a National Officer.
I

Puliiam

S.

Lawrence

trade.

Issues

right
this

at

hand to this

are

Japanese

immediately

go

ads

bership that they were setting a good exam¬

analyses of
the Electric Wire and Cable Industry and Spinning Industry
same

commercial

more

ple

Pulp Industry in Japan—Analysis in current issue of Nomura's
Investors Beacon—Nomura Securities Co., Ltd., 61 Broadway,
York

members

Committee

tive
or

Fresno.

why

market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y.

New

Security Traders Association of
Francisco Secu¬
rity
Traders
Association
joint
Spring Outing at the HaciendaLos Angeles-San

ap¬

shouldn't all the National Officers and Execu¬

Conven¬

May 21-23, 1954 (Fresno, Calif.)

,

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

Finan¬

of

Societies

Analysts

tion at the Palmer House.

birthday, might be
cycle of cooperation, and we member of

the

York 5, N. Y.

Over-the-Counter Index—Folder

cial

Larry, having just had a

Stocks—Comparison and analysis for first

New York City Bank

(Chicago, I1L)

Federation

National

Co., Los Angeles, writes "I'm a-working" and encloses a carbon
copy of his first letter for a commercial ad for our National Secu¬
rity Traders Association Convention issue put
out by the CHRONICLE.
He is doing his best
to
convert his initial effort into an order.

New York 5, N. Y.

yield

Club,

Country

16-26, 1954

May

Larry Puliiam, Weeden &

Our illustrious National Treasurer,

Japan—Circular—Yamaichi Secu¬

Investment Opportunities in

Gas

Rock

Rolling

Ligonier, Pa.

ties

way,

Pittsburgh outing

Bond Club of

Street,

the current issue of "Weeklv Stock

Natural

May 14, 1954 (Pittsburgh, Pa.)

N. Y.

Foreign Investments Through

rities Co.,

Notes

NSTA

5, N. Y.

State Stock

Security Traders As¬

Baltimore

Money—Leaflet—Sidney S. Ross Com¬

and His

Exchange

Stock

of

meeting at the Somerset HoteL

Broadway, New York 5, N. Y.

120

Business Man

Associa¬
Firm*

Board of Governors of

1953 annual report —
Standard Oil Company (New Jersey), Room 1626, 30 Rocke¬
feller Plaza, New York 20, N. Y.
(New Jersey)

Standard Oil Company

Corporation,

Hanseatic

York

Market —Bulletin —New

Bond

Co., Ill Broadway, New York 6, N. Y.

understood that the firms

is

Field

Investment

Hampshire—Analysis—Ira Haupt &

Public Service Co. of New

It

May 13, 1954

The Commercial and Financial Chronicle... Thursday,

(2096)

SMITH, Chairman

field

nual

day at the Knoilwood

'

National

Atomic Uranium, Sun Uranium, Uranium Incorporated, Alad¬
din

Uranium,

Federal

S. Uranium,

Uranium, U.

flower Uranium—J. A.

and

New
■

4, New York.
»

American Research and Development

While

on

Also available is

The

a

—

Bulletin

—

Hazelett Associates,

Baltimore Transit

Company—Analysis—Herbert E. Stern & Co.,
Street, New York 5, N. Y.

Chase National Bank

—

Memorandum

—

McDonnell &

f. Tennessee
I rcurities

Natural

Co., 120

Company

Analysis

—

Harr sburg Steel Corporation

—
Analysis — Butler, Candee &
Miner, 44 Wall Street, New York 5, N. Y.

Kan

a--

City

Securities

an

Federal

forum.

analysis of

&

A

Co.—Memorandum—Shearson, Hammill &

&

Glass

list of 20 stocks in

a

Also available is

favorable technical position and the

June 11,1954 (Los
Bond

field

nual

■

Country Club and Beach
Club, Rye, N. Y.
chester

June

'

•

of

Philadelphia summer outing at
Club, White-

Whitemarsh Country

V

marsh, Pa.

21

and

members from

Special will leave Atlantic City Sunday afternoon arriving
1

;

...

,

(To., ltd.
N.A.S.D.

Twin

Theodore Gary & Co.
Broker and Dealer

Material and Consultation

Research

:

curities

&

79 Milk

Street, announces the ap¬

Corporation,

pointment of P. J. Rafferty, Bos¬
ton securities man, as

Japanese Stocks and Bonds

Troster, Singer & Co.
HA 2-

2400

Members:

74

N.

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




Se¬

June 18, 1954

without
NY 1-

376

61

obligation

Broadway, New York 6, N. Y.
BOwIiog Green 6-0187

Tel.i

Head Office

Ira G. Jones,
dent

for

The

the

manages

Series
Funds.

the
of

June 18, 1954 (New York

sponsors

National
Mutual

and

Securities
Investment

Spring

City)

"Syndicats"
5th
anniversary
and
outing at the Echo Lake
Country Club, Westfield, N. J.
June 24,

sociation

England area.

New Jersey an¬

Club, West Orange, N. J.

Resident Vice-Presi¬
New

(New Jersey) ;
of

nual field day at the" Rock

Boston

corporation

Tokyo

Club

assistant to

on

Request

annual

Club

Club, June 17.

Nat'l Sees. Research
Mass.—National

Bond

City

picnic cocktail party, Hotel Nicol¬
let June 16; field day and golf
tournament, White Bear Yacht

Rafferty Appointed by
BOSTON,

(Minneapolis,

16-17, 1954

Minn.)

Cincinnati, Cleveland and Detroit

The

New York at 5 p.m.

June

Sep¬

join at Pittsburgh arriving Atlantic City Wednesday morning.

Telephone Bond & Share

(Philadelphia, P*>

11, 1954

Investment Traders Association

Security Traders Association of New York

Member

on

(New York City)

Bond Club of New
York 21st annual outing at West¬
Municipal

party followed by dinner will conclude the
Saturday evening. All functions during the convention

Uomtmt Securities

Prospectus

Wilshire

the

at

day

June 11, 1954

Bond

Prirr\ary Markets

Angeles, Calif.}

Los Angeles an¬

Club of

Country Club.

cocktail

may

a

cur-

Jasper Park Lodge.

Friday afternoon at the Atlantic City Race Course.
planned for Friday night.

special train will leave Chicago, Tuesday afternoon

tember

Company—Analysis—Francis J. du Pont

Co., 1 Wall Street, New York 5, N. Y.

summer

(Canada)

June 9-12, 1954

is planning
a
dinner dance at the Starlight Roof of the Waldorf Astoria on
Sunday evening September 26 for those visiting New York follow¬
ing the convention.

Co.,. 14 Wall Street, New York 5, N. Y.
Owens-Illinois

A

The

Co., 11 Wall Street, New York 5, N. Y.
Norwich Pharmacal

Detroit

of

.}.i Investment Dealers' Association
of Canada Annual Convention at

A partial registration for Friday and Saturday
for the men and $25 for the wives.

will be informal.

Corp.—Memorandum—Kidder, Peabody

Club

Country Club.

headquarters is one of At¬
offers the finest accommoda¬
most exacting requirements.

full

program on

Co.—Analysis—Dayton Haigney & Co., Inc.
Street, Boston 10, Mass.

Norris-Thermador

Claridge Hotel, Convention

hosts

30th

York

the Sleepy
Club, Scarbor¬
at

party at the Grosse lie Golf and

The National
Committee meeting and election of officers on
Saturday morning will be followed by luncheon and the corporate

New England Lime
75

be

New

of

day

A shore dinner is

Corporation, 111

Broadway, New York 6, N. Y. Also available is
Aeina Securities Corporation.

Bond

in

to

will

Railway Company—Analysis (bulletin
No
'64)—Smith, Barney & Co., 14 Wall Street, New York
5, New York.

field

June 8, 1954 (Detroit, Mich.)

cele¬

Chicago

in

Country Club. The Investment Traders Association of Philadelphia

Southern

Lea Fabrics, Inc.—Circular—Aetna

founding

its

of

registration and renewing old acquaintances with a recep¬
tion that evening. The municipal forum is planned for Thursday
following luncheon under the direction of Ludwell A. Strader,
Chairman of the Municipal Committee. Friday will be a day for
sports and varied activities.
Charles L. Wallingford, H. M.
Byllesby & Company, Incorporated, Philadelphia, is Chairman of
the Golf Tournament which will be held at the Atlantic City

Equitable
Corporation, 322 Union Street, Nashville 3, Tenn.
—

Convention, the NSTA will be

Wednesday, the opening day of the Convention, will be given
over

—

Gas

21st

Anniversary

(New York City)

Club

Hollow Country
ough, N. Y.

Traders Association is announcing
21st Annual Convention at Atlantic

for members only will be $35

—
Bulletin
Gartley & Associates,
Inc., 68 William Street, New York 5, N. Y. Also available is
a bulletin on Mouftt Yernon
Woodberry Mills, Inc.

E

the

tion fee will be $65.

Broadway, New York 5, N. Y.
Detroit Steel Corporation

is

annual

registration fee for members will be $50 and $40
for members' wives. The non-member and commercial registra¬
The

Inc., 250 West 57th Street, New York 19, N. Y.
30 Pine

June 4, 1954

■

PLANS

lantic City's outstanding hotels which
tions and is equipped to meet our

G^oebel Brewing Company.

Augusta Chemical Company

this

the 20th
August, 1934.
brating

Corporation—Bulletin—DeWitt Conklin Organ¬

ization, 100 Broadway, New York 5, N. Y.
bulletin

Security

National

plans for the
City, Sept. 22-25, 1954.

American Tobacco

Atlas Plywood

CONVENTION

preliminary

Company—Analysis—Peter P. McDermott &
Co., 44 Wall Street, New York 5, N. Y.

5, N. Y.

Bond

The

Corporation—Analysis—
Also

H. Hentz & Co., 60 Beaver Street, New York 4, N. Y.
available is a list of Backward and Depressed stocks,

York

*

PRELIMINARY

•

•

Club, Lake Forest, 111.

c/o Pershing & Co., 120 Broadway,

May¬

Hogle & Co., 50 Broadway, New York

*

Advertising Committee

the

1954

(Boston, Mass.)

Securities
35th

South

Traders

annual

Shore

As¬

outing

Country

at

Club,

Hingham, Mass.
June

24-25, 1954

(Cincinnati, O.)

Cincinnati Municipal Bond Deal-,
ers

Spring party.

"

1

Number 5324... The Commercial and Financial Chronicle

Volume 179

Trading

Bond Club Stock Exch.

pected

Announces "Annual

in

typical

the

shares

turn the

to

is

Corvette

ex¬

station

into a
holiday." It

outing

"bondmen's

(2097)

liner"

sports

wagon

with

car,

and

a

Mercury
"Sky-

a

Buffett-Falk Adds

With L. A. Huey Co.

Ford

plexiglas top

—

(Special to The Financial Chronicle)

plus

(Special to The Financial Chronicle)

OMAHA, Neb. — David E.
place, as usual, in the $5,000 in extra cash payments.
Offering" at $10 Each
Magnuson has been added to the
Stock
Exchange
tent
on
the
D. Frederick Barton, Chairman
staff of Buffett-Falk & Company,
The Bond Club Stock Exchange, grounds
of
the
Sleepy Hollow of the Bond Club Stock
Exchange Omaha National Bank Building.
which opens for trading once a Country Club from 10 a.m. to 6
Committee, has notified members
year at the
club's annual Field p.m. on June 4.
Joins Central Republic
Dividends to be declared at the that subscriptions up to two shares
Day, has announced its 1954 of¬
will

OMAHA. Neb.—E. Glenn Chase

take

is with L. A.

shares, by

fering of 2,500

Joins Harris,

an

"unofficial"

means

be¬

prospectus

CHARLOTTE,

Neb.—Marion Joseph

OMAHA,

new

a

Upham

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)?

will be allotted in full. Subscrip¬
high—five automobiles, in¬ tion books on the
offering will
ing distributed to members. The cluding a Cadillac "Eldorado" con¬
shares are priced at the traditional vertible,
a
Chrysler
"Newport" open May 13 and close at 4 p.m.,
bargain rate of $10 each.
hard-top convertible, a Chevrolet May 26.
of

Huey Co., Patterson

Building.

*

close of the day's trading will set

9

Randall

is

now

N. C.—Ralph E.
connected with

Kennedy has joined the staff of
Central
Republic
Comtian y,

Harris, Upham & Co., Johnston
Building. He was formerly with

Omaha National Bank

Thomson & McKinnon.

Building.

$79,200,000

City of New York
1.90% Serial Bonds
Dated

May 15,

Principal and semi-annual interest

1954.

(November 15 ami May 15)

payable in New York City at the Ofliee of the City Comptroller. Coupon bonds in
AMOUNTS, MATURITIES AND YIELDS OR PRICE

denomination of
nation

$70,200,000 School and Hospital Construction Bonds
Due each

of

$1,000, convertible into fully registered bonds in denomi¬

$1,000

or

multiples thereof, but riot interchangeable.

May 15: $6,300,000 1955-59 and $4,300,000 1960-68, incl.

$9,000,000 Pension Contributions Bonds
Due $3,000,000 each May 15, 1955-57, incl.

,

Interest

1.75%

$4,300,000

1962

1.00

4,300,000

1963

1.15

4,300,000

1964

1.25

4,300,000

1965

2.05%

1.40

4,300,000

1966

2.15

I960

1.50

4,300,000

1967

2.25

1961

1.65

4,300,000

1968

2.30

1955

CO O

9,300,000

1956

9,300,000

1957

6,300,000

1958

6,300,000

1959

4,300,000

4,300,000

$9,300,000

vO

Exempt from present Federal and New York State Income Taxes

1.85

@ 100

Legal Investment for Savings Banks and Life Insurance Companies in the State of New York
and for

Executors, Administrators, Guardians and others holding Trust Funds
for Investment under the Laws of the State

of New York

(Accrued interest to be added)

The above Bonds

are

offered when,
It is

as

and if issued and received by us, and subject to

expected that Interim Bonds in denomination of

The Chase National Bank

■

Chemical Bank & Trust

Manufacturers Trust Company

Company

•

>

Merrill

••

Lynch, Pierce, Fenner & Beane
The

Drexel & Co.

•'

Union Securities Corporation

■

■

Hornblower & Weeks

•'

Chas. E. Weigold & Co.

Incorporated

Lehman Brothers
•'

: '

:

lam City,

Company

•

■

-

Blyth
& Co.,\ Inc.
"

lazard
Freres & Co.
.*•-V-V."..."
' '

American Securities Corporation
"

Company

.•

.■ •

Harris Trust and Savings Bank

The Northern Trust Company

A. G. Becker & Co.
Incorporated

R. W. Pressprich & Co.

Equitable Securities Corporation
Paine, Webber, Jackson & Curtis

F. S. Moseley & 'Co.

Hallgarten & Co.

/

I

Barr Brothers & Co.

Gregory & Son
*

Hirsch & Co.

Laurence M. Marks & Co.

1

Badie & Co.

Goodbody & Co.

,

The Boatmen's National Bank

Central

Republic Company

Green, Ellis & Anderson

City National Bank & Trust Co.

(Incorporated)

.1 St. letis

iincorperarea,

Hayden, Miller & Co.

Heller, Bruce & Co.

Kansas City, Mt.

The Illinois Company

Me.

Carl M. Loeb, Rhoades & Co.

New York,

'-;i

Swiss American Corporation

Schoellkopf, Hutton & Pomeroy, Inc.

Federation Bank & Trust

'

Incorporated

Incorporated

Commerce Trust

'/

Bear, Stearns & Co.

Goldman, Sachs & Co.

'•

-

Reynolds & Co.

i. P. Morgan & Co.

Blair, Rollins & Co.

Philadelphia National Bank
■

Hemphill, Noyes 4 Co.

prior sale and approval of legality by Messrs. Wood, King d Dawson, Attorneys, New York, X. Y.

$1,000 will be delivered in the first instance pending preparation of Definitive Bonds.

Wm. E. Pollock & Co.; Inc.

The Robinson-Humphrey Company, Inc.

Stern Brothers & Co.

Stroud & Company
Incarpa rated

Trust Company of Georgia

Weeden
$ Co.
Incorporated

May 13, 1954.




I

I

10

The Commercial and Financial Chronicle.

(2098)

Business Conditions Looking

Up

would

year

creased
.

predicted

sharp

would not have a
business during

we

in

drop

1954.

So

this

far

has

taken

not

al¬

place,

though
has

igji.

there

been

a

temporary

period of un¬
employment.

Irmz,

The
is:

question
will

What

be the pattern

of

business

.

from here on?

This

discuss
few

in

when

j

g

a

of my critics were

failed to bolster ther attitude, they
have
now
become
pessimistic

about the second half. I think they

Sure, retail sales

wrong!

have

dropped some in a number
of lines since the first of,the year.
Automobile

sales

for

panies have been
has

duction

most

slowed

to

com¬

Steel

pro¬

about

70%

poor.

capacity, but is still almost 30%

of

better

than

of

that

1940

hands.

Last

farm

year's

5% drop in
caught
the
farm

income

farm

fewer

and

machinery manufacturers off bal¬
ance.
I anticipate this condition
will

continue well into 1954.

The

leveling-off in business ac¬
tivity which figures such as these
represent, will be reflected in the
business

railroads.

the

of

ing this second quarter
roads

27%

anticipating

are

decline

in

Dur¬

about

automotive

a

ship¬
steel

ments, a
17%
decline in
loadings, and an approximate 8%
decline in

coal

ings.

the

On

and

coke

carload-

other

hand, some
increase is expected in transport¬
ing such things as fruits, frozen
foods, cotton, and cement. So, I
forecast that total carloadings this
quarter will reflect a drop of only

roughly

160,000,000. Even

from

page

with

money.

sonal

to

buy;

they

have

Did

you

know

that

income

billion

rose

to

the
per¬

about

by the end of 1953,

$285
com¬

pared with around $280 billion at
the end of 1952?

period,

During this

same

increased

more

salaries

than 2%

that

living stand¬
ards
and
savings
reached
the
highest point in history.
so

Further,
and

in

amount

of

an

banks

our

cash

our

have

government

both

securities

equal to about 60%
and the easy-money

deposits,

policy which
is back, with

encourages

business

The construction

us.

industry keeps booming. For

These

products are widely used through¬
industry.
Mathieson is also

a

major factor in the field of

syn¬

thetic

reports that

construction

new

penditures for first-quarter
were

the

national

highest

history.-

in

A

our

ex¬

though monetary action cannot Stop a decline in economic
activity, it can aid in keeping the decline from over-reaching
the real needs of economic
readjustment.

entire

number

of

manufacturers polled indicate that

March, 1954
or

third

was

best

either the second

in

the

their companies.




history

of

long

as

present economic situation persists;"

as

Sales

head.

regarded

large

is still
in its infancy since
of land are yet too

as

tracts
to

poor

industry

support

economic

farm

The

acquisition of E. R. Squibb,
sales of over $100,000,000,

with

firmly
the

established

ethical

ing

drug

Mathieson

separate division, Squibb

as a

manufactures

and

markets

four

general classes of products: anti¬
biotics, nutritional products, spe¬
cialties and household drug prod¬
ucts.
Squibb, today, operates

throughout the free world with
plants and major distribution fa¬
cilities in South America, Canada,
Europe and Asia.
Other
clude

Motors,

investments

recent

50%

a

interest in

in¬

Reaction

research

and develop¬
having its field of
interest in liquid-fuel rocket en¬
gines.

ment

ieson

a

company

The
exploitation of the new
chemical, hydrazine, of promise
as
a
rocket
fuel, establishes a
starting point for a new family

does

Since Math¬

consolidate

not

subsidiaries,

about

000,000 of net income
a

share

of

or

its

$2,-

35 cents

excluded from profits

was

reported

last

year..

Any

relaxa¬

y
restrictions,
improve earn¬

c u r r e n c

should

therefore,
ings.
782

shares

the

New

of

outstanding 5,464,(listed

common

York

on

Stock

in

Mathieson's

Last

are

now

research

Net

equity

In

at

14
with approximately 20

try to

the

effective

most

the

Federal

ac¬

Reserve

take to make cumula¬

equity

with

Once

the

ing,

turn

when it

even

or

to

sharp

should

put

the

on

Otherwise they may be
at

least,

influenced

sys¬
pres¬

forced

or,

restrict

to repay

outstanding loans.
fact it is largely true, I think,

rowers

In

that

if

left

itself

to

the

economic

an

downturn,

risks

rise

more

cautious.

phase

of

The

become

objective

of

directional

a

is

to

try

to

change in
prevent this

happening.
decline in economic

a

course,

activity

the duty of the

Reserve System goes well

Federal

beyond checking the possible
action of the

verse

mechanism.
see

The

it that

to

a

per¬

private credit

System

can

then

monetary climate
expansion and

favorable to credit

capital expenditures is created. It

for¬

to

see

can

banks

it

amply supplied with

are

re¬

serves,

and have ample assurance

thereto

of

continuing, availability

Securities

a

partner in Virginia

Company of Norfolk.

the

reserves

at

low cost.

It

can

of

see

to

it that the cost of borrowed capital

1952

(including Squibb
quarter) or with $2.53,

turns in favor of the borrower. Its

With Investors

Realty

for

(Special to The Financial Chronicle)

in¬

LOS ANGELES, Calif.—Earl D.
Van Keuren, Milton Toboco and

cluding Squibb for the full year.
Acquisition of Squibb has tem¬ Arthur H. Wolfe have become as¬
with
porarily
retarded
earnings
but sociated
Investors
Realty
much has been accomplished in Fund. Inc.
Mr. Van Keuren was
the consolidation. Assets no longer formerly with
King Merritt & Co.,
needed have been sold and op¬ Inc., and Cantor,
Fitzgerald & Co.,
erating units have been consoli¬ Inc. Mr. Toboco was with Marache
„

to

reduce

costs

and

over¬

policy

Dofflemyre & Co.

J

1952,

of

months

of

the

and

1953,
when

1953,

early

decided

was

inflationary pressures
longer dominant in our

no

when

and

in

gage markets

developed,

made

of

supplied

reversal

some

necessity.

economic

decline

substantial amounts

to, the

reserves

con¬

took the offensive

we

somewhat

econ¬

capital and mort¬

monetary

a

were

evidence of

the

in

reversed

was

it

year

that

in

banking system

advance

actual

of

need. And right up to the present
moment there has been assurance
and
reassurance,: through
open
market operations and reductions
in the

funds

discount

rate, that reserve

and will be

are

cheaply available

readily and
long

so

economic

present

the

as

situation

per¬

sists.

policy becomes an affirmative ag¬
gressive policy which helps to
remove deterrents to expenditure

individuals, by business, and
by State and local governments.
by

The
tional

financial

*An

needs

government

considered

of the

must

also

by Mr. Sproul before

by

forces

be

the

eased

eliminated,
later by

or

our

action

within

the

and

Bank

market.

credit, corporate borrowing, mort¬
gage borrowing, consumer credit,
and borrowing by State and local
authorities
have

Truly,
of

(if

been

all

straints

of

rightly
freed

the

priced)
the

of

earlier

is necessary in

as

re¬

period.
a

period

economic

decline,
monetary
policy has gotten out of the way

of

production,
distribution, and
spending. It has helped to clear

the way for economic
recovery.

There

are

those, of course, many

of whom

usually sit facing back¬
ward—it is slightly easier to see
where you have been than where
you are going—who criticize our
intervention, and particularly the
steps we took to check credit ex¬
pansion in the boom period which
preceded
Their

the

thesis

monetary
a

boom

which

Bankers Association, Atlantic

City, N. J., May 6, 1954.

been

first

na¬

in such circumstances,

address

New Jersey

have

commercial

that

Norfolk, Va., manager for
Wyllie and Thornhill and prior
was

Reserve

past

As a consequence, whatever
.tight spots there-may have been
credit in the money and capital markets

monetary management, in the first

If

was

the

has
generally
consistent
with
oojectives. The restrictive

ttiese

May

Federal

of

during

credit

as

lenders

and

persists, of

He

which

mechanism may tend to aggravate

from

Henry G. Isaacs

restraint

Policy
course

evidences of

reserve

to

the

by

As

credit and to put pressure on bor¬

policy,

all

$3.30. This compared with $3.44

borrowed from banks will1

ex¬

position of the commercial banks.

Shields in Florida

stimulating

spending of

policy

com¬

whatever

relax

has

it

sure

to be

seems

public
needs
of assurance

the

or

of

however,

of
The

meet

to

A Consistent Federal Reserve

and

comes,

and

are

and

alert central banking

an

tem

Henry G. Isaacs With

lead

as

concerned,
advance

speculative

by

which

far

so

disorderly declines.

growth

potential.

is

policy

of economic

distorted

not

chemical

to it that,

see

monetary

periods
cesses

for others in the industry.
addition, the stock yields above
4%, which is quite acceptable for

items.

dated

uv\<Oii4i-'cUliiiiciit.

widespread human suffering.
Helping to prevent the formation
of a speculative bubble on top of

In

merly

for

Vvlii.1

able

government borrowing has placed
on
private credit.

UtrjuaaUil

spell

some

government

offset

been

times

or

Net per share in 1953 amounted

be

striction

sales

to

of

necessitous

availability

degree

comfort,

to

engaged

higher and pre¬
tax profits rose $10,700,000 or 45%
in 1953. Net profits increased 40%
after taxes and non-recurring

private

is

appraising this
times earnings as

banks

reserve

borrowers.

be

to

some

policy

can

borrowed
the

causing

private

with

market

program.

13%

re¬

its

the

both

omy,

increased

were

have

tive deflation less likely. We have

Shields & Company.

in

banks

1.

divisions partici¬
sales.
Every
product was ahead in both sales
and
profits.
On a pro forma
basis, for Mathieson and Squibb,
1953,

pated

to

sequent deflation; perhaps severe

several

new

credit

The

System

be

ample

do

to

of

money

was

economic

our

also

may

which

with

lessening

sub¬

is

to

Unless

without

to

compared

a

than

use

That sort of situation, if
unchecked, breeds speculation and
may spell inflation and erosion of
the purchasing power of the dol¬

ratio
The

Sproul

balance.

tion?

of 3.8

unable

effect

calling

boom

ought

financing

and
Allan

credit into

it

bor¬

of: it will have

some

banks.

or

both.

or

will have to be

money

provided

be

tion

And

are

funds, however, the Treasury will

pe¬

seemed

e

expenditures,

be and

are

quired to maintain

working capital
position is adequate with current

projects, in¬
improved prod¬
ucts and processes developed in
its laboratories, were brought into
commercial production.
year,

volving

b

o

a

compounds, the
dronitrogens.
In 1953, Olin

trained scientists

t

ferred, convertible into two shares
common.

u a

more

of

chemical

of

i t

s

which

Exchange)
are $77,182,150
of long-term debt
and 180,000 shares of $4.25 pre¬
of

increased

rowed, and

riod of'boom"

a

' •'

political

or

deficits

through reduced tax collections
New

really
in the

narrow

-r7

likely to develop or increase in a
period of economic decline, either

from the

lar.

Ahead of the

in

Operat¬

group.

their first real contribution

to earnings this year.

tion

yields.

should

a

Government

action

preceding
profits

in

not

to

began

and

and

sense.

development?
Well, its re¬

begin to show marked im¬ when, during
1952 and the
provement.
Emphasis in 1954 will be on, early months
operating economies and consoli¬ of 1953, it ap¬
dation of recent gains, and new plied mone¬
plant facilities should begin to tary brakes to

overseas

the

this

to

now

science

last

1954

the discount rate and
open market/ir
that Federa! Reserve will readily sup¬

in

as assurance

ply funds

4,000,000 unem¬
capita percentage.,
equal only 2.5, or

per

'

recov¬

high estimate of

make

and

for economic

way

ployed, the

fertilizers and agricultural
specialties, including a variety of
pesticides. Agriculture represents
one of the most interesting of all
fields for
the
application of

ex¬

ample, the Commerce Department

reductions

to

operations

a

2

methanol.

and

York

reserves

Points

numbers

hy(Special to The Financial Chronicle)
about 8% over the second quar¬
In¬
MIAMI, Fla. — Henry G. Isaacs
dustries
and
Mathieson
ter of last year.
jointly
has
become
associated
with
formed the Matholin Corporation
Reasons for Optimism
to acquire a hydrazine plant, com¬
There are, in fact, some sub¬ pleted during the year.
Olin In¬
stantial reasons for optimism. For dustries has, for many years, car¬
ried
on
research
in
the
uses
of
nearly a year now we have been
working down the unsold goods hydrazine and its derivatives as
on our shelves and
in our ware¬ propellents both for industrial and
houses. People are still in a good military application.
Over 1,000
position

of

then 8%. Now take 1954. Our

population

New

by taking the offensi/e and supplying substantial amounts
to the banking system in advance of actual need.

ery

acted

out

rail¬

our

monetary policy has helped clear the

unem¬

The Security I Like Best

1946.

or

The squeeze has been on, too, for
the
marginal farmer, with the
trend
to
larger farms,
greater

mechanization,

129,825,000 and

ployment to 10,390,000. The per
capita unemployment, therefore,
present

of

Head of* New a, York Reserve Bank maintains Federal Reserve

newspapers.

soda, chlorine, sulphuric acid,

pessimistic for the first
quarter and business conditions

still

to

maga¬

many

President, Federal Reserve Bank

unem¬

adverse

an

Continued

for

overly

are

loose

much

of

Money Market

By ALLAN SCROLL*

figure would
This could about the same as in the
boopa
psychological ef¬
year of 1928! Be careful how you
fect upon business which is not
let the prophets of doom lead you
For the past nine or ten months
warranted.
Granted,
across
the
astray.
Business
conditions
are
we
have been in a period of de¬
country there have been more in¬
good, and with your help they are
stances of local labor surpluses.
clining economic activity, call it
going
to
be
even
better
in
the
what you will. How has the FedNo one likes to see anybody out of
e r a 1
Reserve
work. But the picture is not nearly (months to come.
System re¬
and

have

ammonia

some

by

presented

zines

a

six months.
Because

been

make

I

h g

{

too

about

unemployment. I am
especially concerned by the way
in which unemployment data have

extended

forecast

w. Babson

been

has

percent

weeks

may
.

Question

was

There
talk

will

I

Unemployment

The

I

And the

the

1928

120,501,000.
The
totaled 2,935,000.

was

the

Therefore,

*

Last December in this column

illustrate: 'In

To

ployment per capita was only 2.4.,
In
1938 the
population had in¬

newspapers.
I

a

population
unemployed

ployment data have been presented by many magazines and
.

the best way of pre¬
unemployment figures is
per
capita or percentage

basis.

activity in

and finds there are some substantial
reasons for optirilism.
Says there has been too much loose talk
about unemployment, and criticizes the manner in which unem¬
of

second quarter

The Ct ntral Banks

believe.

believe

I

on

leveling off of business

a

/analysts

some

as

us

sday,-"May 12, 1954

senting

By ROGER W. BABSON

foresees

Babson

Mr.

have

Thui

.

'A

(•

alarming

so

.

present

will
cannot

decline.
to

seems

action

taken

bring
then

on

be

be

to
a

that

check

decline
checked.

That is tantamount to
saying you
do not want a central

though
are

surprisingly

often

the

same

Continued

bank, al¬
these critics
people

on

who

page

30

Volume

Number 5324

179

The Commercial and Financial Chronicle

...

(2099)

f.

transportation, for

"Whither Electronics?"
*

which

sound

Radio Corporation of America

technical director,
technicians

and

,

have

ment, stresses changes which will be wrought in

by various electronic devices.
fantastic
tialities

this

electronics

before
the

our lifetime. Reveals accomplishments of transistor
vital functions for industry performed
by micro-wave

been

and

turn

computing machines, and television.

systems,

in

Reviews

to

progress

Knowing as I do what it costs
bring new ideas from the lab¬

oratory to
ize

there

products,

new

is

I

substantial

a

that

mutual

maintain

records,

handle

real¬

complicated

prepare

debit

and

statements,

credit

accounts

and

interest in the

perform with fantastic speed
any number of related operations

technical

requiring

0

f

side

electronic

the
storage, selection
distribution
of complicated

and

development

data.

and

staffed

invest¬

ments.

Some¬

one

must

the

bill;

mately
the

ulti¬
he is

has

who

the

,

faith

industry,

is

B.

Jolliffe

our economy and our invest¬
ments, both as an expanding in¬
dustry in itself and as a producer

and

Electronics is

tury.

having

man's

of

of the wonder

one

the

Twentieth

It

has

to

duplicate

power

almost

and to

senses

sometimes

as

systems

uses.

sciences

abilities.

and

outdo

Cen¬

unlimited

amplify

match,

well

as

many

of his

deVices

Electronic

can

hear, see, feel, measure and con¬
trol; sort, count, compute, and cal¬
culate.
They can memorize and
correlate

and,

facts

upon

useful

and

information

demand, recall them for
said

by

of

one

leading scientists that
he

what

our
man

conceive, understand, and do,
will

able

be

to

construct

do

this

have

prospect

a

headquar¬

would

number

a

the center

be

system

including

microwave

to

access

radio-tele¬

phone, facsimile, and television
circuits linking the various units
and key
personnel'throughout the
company and in the field.

group

that

common

executive

desks

would

conference at any time

dialing

number.

a

be

simply by

He

does

not

need to wait for

people to travel.
Also, the conference, images and
words, could be recorded on tape
and
as

retained for

record

a

for

necessary

checking

for

or

The

pate.

as

long

reference

and

review

could

by

not

some

partici¬

system could be
used for inspection of offices and
plants wherever located.
The

same

working

for

areas

the
Laboratories

us,

in

console

in

manium—e

1 d

o u

hours

inside

ex¬

ics,

immediately

tube

working

in

sistor

turned

field

as

tubes

replacement for

a

in

many

the heart of

new
as

than

even

thanks

to

today's

electronic

sorbers and

is

launching

Reality

The

advantages of work¬
electronics is the fact

with

found

radical

changes

far

of

ence

of the

women

a

"dream

house"

future, in which electronic

devices would prepare the

provide
furnish

the

daily

entertainment,

regulate
temperature,

home

lighting and
guard the house, and

the

even

family accounts.

dience

meals,

newspaper,

and

I

knew

Both
that

handle
my au¬

the

pic¬
fancy—but it hap¬
pened to be fanciful only from the
economic standpoint. Technically,
ture

was

sheer

all of the devices I described

were

feasible, and

a good many of them
already are in use or involve
principles that electronic scien¬

tists know to be practicable.
On
you

the

the

same

basis

in

dream

this

office

might enjoy
dream

office

a

fantasy,
glimpse into

of

the

future.

home and

driverless

even

and

takes

quired by

a vacuum

a

Speculation of this sort is not

daily practice
and

engineering people in the
electronic field, I assure you—but
a certain amount of it is hard to
avoid
The
of

when

fact

no

that

we

know

limits to technical

ments

today
develop-i

Relatively

existence of the elec¬
practically unknown half
a
century ago: our electronics in¬
dustry has become a major factor

tron

Bankers,




power

useful

for

a

number

service and fault chan-

the

maintenance, in-

observation

repeater

of

stations.

un-

This

is

a large system, as you may see
from these pictures of the tele-

metering installation

of

the

terminal

tions such
tion

as

trucks

and

one

Mobile

units.

bf

sta-

repair and construcbe

can

you

tied

in

if

re-

familiar with

are

radio relay.

electronic func¬

hitherto

tions

performed

by

;and commerce, and as a replace-

Already
in

hearing

an

the

aids

certain

transistor

estimated

sold

is

90%

today

at

of all

and

in

types of telephone equip¬
our laboratories
it has

In

ment.

,

-

supervisory

'

functions.

hale,

or as an

_

coast color television
last fall, was carried

information > and
electronic
control
alone
has' in-

miles

RCA

users

than

more

the

AT&T

broadcast
over 4,000
microwave

are

tions

for

4,000

systems

microwave

Today,
terns

radio

sys-

J!™* IfL A?vtially broad field of electronics. Of

performing vital tuncindustry, for network
television and for the military—

offer to buy,

of

miles of system having more than 100 iiifor various termediate relay stations,
in the United States.
'
Electronic computers and busi-

stalled

This advertisement is not, and is under
,

used

j traffic. control

microwave

tubes.

vacuum

work

basic

are

extensively by the AT&T for the

tube—mean¬

tube: It has the abil¬
amplify,- oscillate and de¬

to

Such relays

no

j

Continued

on page

an offering of these shares for
solicitation of an offer to buy, any of such shares.
is made only by the Prospectus.

circumstances to be construed as,

or as a

The offering

330,296 Shares

Keystone Portland Cement Company
Common Stock
i
Par Value S.'l Per Share

-

■

Jy

-

PRICE $15,375 PER SHARE

Copies of the Prospectus may be obtained in any State from
only sueh of the underwriters, including the undersigned, as
may legally offer these securities under the laws of such State.

i

'

■

•

,

Shields & Company
Lehman Brothers

White, Weld & Co.

11 S. Dickson & Company

American Securities Corporation

Incorporated

Hemphill, Noyes & Co.

Equitable Securities Corporation

Carl M. Loeb, Rhoades & Co.

Shearson, IIammill & Co.

Paine, Webber, Jackson & Curtis

was

electron

Investment

eluding
attended

compactness
requirements

s

a

nel set aside for

W

past

of

it

r

Lee Higginson Corporation
Electronics

ability to employ and control

Institute

low

in electronics.

the
1954'

ling, and

supply,

try to look ahead.

we

is

our

University of Pennsylvania, Philadelphia,
April 15, 1954.

are

ruggedness, i t

a

all

Pa.,

headquarters

among our research

ma¬

the

Louis

directions—to

pilot-

done with electronic business

before

St.

Wood
River and Joppo, 111., and to
Bagr
nell Dam, Mo. The chain
include^

portable

munications field—the microwave

It

any vacuum

ity

tect—three

planes, ships and trains, guided
safely and surely by known
electronic principles than they are
guided today by human drivers.
Economically fantastic, of course,
but all technically feasible.

the

Dr. Jolliffe

the

three

less

and

address by

ar-

quired,
another remarkably useful elecMicrowave relay systems protronic development in the com- '-vide a versatile tool for industry

fraction of the power re¬

a

more

statistical,
accounting
bookkeeping functions are

*An

in

speakers

in

between, with

automobiles

in

The

4x6

a

are

The very

of

of

matched

at

too

be

can

have

we

future

straying

that

offices,

that you can allow yourself to be
carried away by visions of the
without

RCA

microwave system is

tool

sound-ab¬

by >electronic advances
touching nearly every aspect of
our daily environment—at
work,

from reality. A few months
ago,
1 described to a New York audi¬

by

Company,

air

conditioners. You
taking stock of the changes that
would see no lighting fixtures—
already been wrought in our
the
office
walls, coated with syn¬
lives
by various electronic de¬
thetic phosphors, would glow with
vices, and the recent technical de-.
any
desired
brightness or color
velopments that appear likely to
under "black light" or ultra-violet
make significant changes in the
rays turned on automatically as
years immediately ahead.
daylight falls below a certain in¬
A Vision Not Too Far From
tensity.

One of the

use

applications in military electronic
equipment.

is tiny

It

A

number

d

have

ing

usual

make

vacuum

in this picture slide.

you see

s

a n

functions and as
new electronic

electronics.

completed

Union Electric

from

permits

speaker—considerably larger

Many of

in

of

batteries

i t

totally

transistor

era

system

the

flexible

a

heat output and
tube replacement.
In addition to

equipment.
The

using
saved

space

control

remote

by the transistors and their small

power

this

to

receiver

The

tubes, such as electronic
computers,
the
transistor
will
mean
great
savings
in
space,

today the tran¬
entering the commercial

is

mile

a

vacuum

device—and

new

tubes.

a

only a few of the 12 relay and six terminal star
of
applications tions,
including
a
combination
awaiting the transistor as today's terminal and repeater
installar
intricate manufacturing process is tion in St. Louis.
The system has
simplified and mass production is ^channels for voice communica^achieved.
In
large installations tion, automatic switching at rethat
now
require thousands of mote points, push-button signal-

vari¬

at

the audio output

portable

These

Up to

own

small-size

six

carry

ranged according to individual rer
quirements.
This one
fans
out

vast

Other lab¬

our

on

sets-

field of solid-state phys¬

same

twice

typical

ger¬

our

operate for 500

St. Louis.

solid

vacuum

a

oratories, including
RCA, that had been
the

more

lines,

pumping stations,
railroad signals and switches, and
auxiliary power plants
A typical installation is the 425for

controlled

electronic devices.

ous

or

permit

of

than

them in

use

They

For example,
developmental

one
can

wire

unattended

pro-

time, it had been necessary
to "boil" electrons out of a heated
order to

are

duce

that

in

here

which

for

greater

than

flashlight batteries and yet

discovered

while still inside the solid.

electrode

have

inch

be

Transistors

vest-pocket size.

we

model

Tele¬

certain

radio.

need

variety
of
traffic
present wire facilities, and
insure a high degree of secrecy,

the place once oc-

reducing the portable radio

now

to

at
ac-

by any other means,
radio signals beamed
station to station eliminate

from

cupied in the home by the large

ago, a re¬

Bell

materials—notably the metal

execu¬

tives and clerical personnel would
be far quieter and more comfort¬
able

before
interest

years

at

electrons

the
far

as

and

complished

port-

receivers
over

reliability

Microwave

ex-

television

years

greater

rnent for long-distance telephoneand telegraph wire systems. The
distribution
of
television
proAmerican Telephone and Tele¬
equipped with
small
television ing that many transistorized de¬
cameras and
uses extensive
receivers to form a vices can operate for long grams, but that is only one use.' gtraph Company
closed-circuit
inter-office visual periods on very small batteries. Similar systems can provide mul- microwave systems not on^y to
communications distribute
television
programs
communications system for , indi¬ It is remarkably rugged, having tiple-channe 1
vidual and conference discussion. resistance to shock and to atmos¬ over long distances for teletype,
but also for long-distance tele¬
The chief executive could call a pheric
voice,
telemetering, phone circuits. The first coast-tochange far greater than facsimile,
All

in

his bid¬

ding.
With

out

highly efficient communica¬

a

Only six

search

..

electronic systems to

we

take

transmitted

business with

a

executive who

purposes.

It has been

can

and

are

administrative

complete

C.

Dr.

and

devices

These

branches

of

ing

of

information

The

tions

will be affect¬

many

;

of

directly or in¬
directly. Elec¬
tronics

the

ters of

invest in

our

accounting center is
specialists who feed

with

instantly and automatically to the
interested executives by means of
rapid facsimile or even television.

stock¬

holder
to

in

The

the results.

pay

ample.

signifiFor

trend toward smaller

vacuum

startling

with

lower cost than has yet been

have

has taken

laboratories.
a

major
future.

which

we

radio

underway

now

near

experi-

of

some

of

recent

a

lies

already
before we
of research

products

development

our

phone

chines
stock

that

of

scores

be

the

in

seen

have

even

The transistor is

development.
of color television.

con¬

applications of

that

the

to

you

domain

new

developed,

and

Asserts

future safety and welfare of the United States and the free
world itself are dependent on military electronics

vast
for

us

when

case

devices

tapped in
radio

the

sider 4 the

equipment and predicts poten¬
unlikely to be more than barely

are

is

to

able

are
unlikely to be
barely tapped in our
Yet you will agree that

lifetime.

and

new

that
the

say

ample,

than

more

our economy

number of

a

to

scratched

in

devices,

promise

electronics

of

develop¬

of electronic

uses

of

Lists

rash

merely

tested

mental

cance-in
may

surface and that the potentialities

mutual interest

electronic

in

somewhat

have

we

in pointing out the
investors

industry, and for the

Against this background, it

*

been

com¬

tools of modern warfare.

By DR. C. B. JOLLIFFE*

RCA

and

merce

Vice-President and Technical Director
t

multitude of

a

intricate control functions in

11

the

modern

national

ten

the

methods

of

only in
But already

basis

for

all

communica¬

tion, for all of today's mass enter¬
tainment,
for
present-day
air

A. C. Allyn and Company
Incorp

Dick & Merle-Smith

economy

years.

is

Hornblower & Weeks

Sinker, Deane & Scribnkh
May II, liU.

Blair, Rollins & Co.
Incorporated

raiel

Hayden, Stone & Co.

Walston & Co.

Johnston, Lemon & Co.

41

12

(2100)

The Commercial and Financial Chronicle...

the part of the salesman.

on

We Have

Selling lob to Do!

a

about

By FRANK C. PESVEYC*

Service

Electric

and

Asserting prime function of private enterprise is not to meet
demand, but to create it, Mr, Pesveyc lays down basic prin¬
ciples that underlie every good sales job. Advocates salesmen
avoid being faint-hearted; talk to right people; watch your
language; and use "showmanship" in making sales. Indicates

Get
the

out

best

made to

there

and

sell!

businessman these days.

In

a

such

the

no-

s

as

e

e

s

-

a

sales

w

do

duction

if

secondary

ing

Mutual

sav¬

particularly
g u

i d

three

Frank

be

d

e

have

now

mutual

savings

Would

might change their minds
were sold the idea.

they

percent

magic
to

(1)

Don't be

defensive.

the

on

(2) Don't take pot shots at com¬
petitors.
(3) Do sell positively, using the

thinking

latest

in selling without
sacrificing basic tenets of banks.
Because
record

begin

outstanding

reputation,
savings
actually have a headstart

other

on

their

of

and

banks

businesses

real

a

sales

when

they
For

program.

in

use

50 years ago.

equally
impressive
a
good reputation

And

helps to sell.

/

Deposits in the nation's 528
tual

savings

banks

$541,000,000

the

in

mu¬

increased

first

high

new

record

to

the

discretionary

spending power in the hands of
the
public
has
increased
five
times.

The

of

owners

in his bank

or

in his home.

but

modern

fluorescent
him.

incandescent

have

banker's
them

selling

want

to

job

is

to

lighting

because,

ings in HIS bank or, more impor¬
tantly, to BUY some of the bank¬
ing services he has to offer.
To

no

720 people will

Thus

we

see

more

Salesmanship Rules
My research reveals that down

through the

ages,

men

who have

has

future

of

tried

that to¬

I

them

pass

along

in

the

known

as

a

Director of Alabama Gas

Even

color
will

TV,

inch

of

there

the

way

or vacations,
fighting every
for every dollar

that John and Jane Prospect have.
The

basic

function

of

private

enterprise is not to meet demand.

they'll

be

marrying,

starting
is to create demand—to build
homes, making loans, and voting.
up desires.
That's our most im¬ Are we
selling them on our bank?
portant selling job.
(3) Watch Your Language— In
Desires are the important things.
talking to the right people let's
Our ecolnomy is built on the
sale, make sure that we use the lan¬
It

and

enjoyment of things that

definitely not necessities. Does
anyone really NEED a TV set?
Of
are

course

not!

But

we've

multi-billion industry

Desires, remember,
only by salesmen.
It

to

seems

me

built

a

TV.

on

created

are

have

a

-clear

and

Words that

unmistakable

meaning to our customers are the
only ones we can afford to use.

sav¬

with

customers?

You'll

want to sell more of their
services

and sell the American

language!

Practically
down

the

wav

no

one

is

doors

of

any

of life.

breaking
bank

to

'Summary of
the

Annual

Association

a talk by Mr.
Pesveyc at
Convention of the National

of

Mutual

Savings

Chicago, III., May 11, 1954.




your

'h

(4)
son

ever'

ever

'

;

us,

"Nothing great

accomplished

without

.much

of

as

tives

what

that

we

which

They tell

we

work

To

can.

We

found

things

then

things

we

start

we

can

that, there

government

the

principal

are

role

of

of

business

so

under

your

ahead

has

to

been

and

see

like

New

down

down

more

do.

the net

So

add

to

would'

much

as

I

deterrent
taxes.

expenditures

to

come

strides

great
the

last

government.

have

been

$289

billion

in 1952,
1953, at the end

-

started

in

in

about $11

that

1954

the

the

with

hands

of

billion. Now

corporate

securities

billion

of

How

15

bringing down the

of

records

in¬

held

by

and

these

made.

ex¬

New

A

new

such

assets

at

the

be¬

ginning of 1954.
about

the

state

of

saving

in this nation of ours? In 1952 and

again

in

1953

the

rate

of

saving

out of

the

disposable personal income
7%. Preliminary estimates for

first

quarter

of

saving

about 7.5%
of

for

of

at
a

1954

put

the

slightly

more;
total annual rate

19 billions of dollars. The

over

of

rate

penses

1952

it

$80 billion; so
liquid assets of our people

up

other

can

in

1953

people—that's another $200 bil¬
progresst lion. So we have a total of $500

as

in

in

about

steam.

you

that

amounted

individuals

assets

people

rate

made

they

billion;
to

we

liquid

lowered, not as much
like, but taxes have
and they will come

realize

liquid
people

our

trmendous. At

about $20 billion.

up

of

of those years.

was

been

of

are

1952

aggregated

Taxes

as

$70

creased

you would

come

of

debt

to

to see.

been

end

was

govern¬

as

not

heard—the

by all

and $300 billion in

you

on

insurance policies, etc. By the end
of
1953, that had increased to

many

own

some

much

as

that

very

figures

$359 billion. That's cash,. Fed¬
eral securities, cash values of life

do.

can

the

to

today, as we see it in the
Department of Commerce, is to
try to take the stumps out of the
way, to try to remove the deter¬
rents

held

here in the U. S.

give

problems are so
be able to help them.

the

on

Domestic Af¬

would be

you

have

not

may

assets

as

industry representa¬ $379 billion,

us;

under

think

selling,
inventories,
and
disposable income, and others.
Here are some figures that
you

you'll

their

may

I

retail

your

leading people of a particular in¬
dustry to one of these conferences.
We ask those

people full of statistics.

comes

fairs.

example, we have had
industry conferences so
bring in from 25 to 35

22

We

record

saving is

short-term

increasing, and

debts

of

individuals

being paid off faster than they
being incurred. Now that is a
bit unusual, but that is
occurring
today.
are

are

..

Company, New York City, has

been

elected

Alabama

a

Gas

director

of

The

Corporation,

Bir¬

cut.

TAMPA, Fla.

I

Melbourne

F.

Now With Louis McClure
(Special to The Financial Chronicle)

TAMPA, 'Fla.—Louis
of

has

Louis

Madison

been

C.

added

McClure

to

&

tii

M.

Sax-

the

staff

Co., 617

Street.

Schwanz Adds

to

Staff

(Special to The Financial Chronicle)

AURORA, 111.—Jack A. Rogan
&

joined

the

staff

of

ment
too

as

more

time goes along,
steps in that right

which

haven't

our

some

govern¬

been

long. The stabilizers

there

are

funds

paid
out
by
government
from
trust funds into the
economy. One

is, of cohrse, unemployment com¬
pensation; another is retirement

We

have

been

readjustment,

principally to

going through

that's
a

a

due

surer

decline in defense

procurement, and that's a sizable
figure. It was at the peak in the
second quarter of 1953, at a rate
of

$53

billion

year.

It has

dropped

in

the

first

quarter

1954

a

rate

of

to

a

$47

now

of

billion.

Liquidation of inventories, too has
had

substantial

a

effect

on

pur¬

chases.
We

feel

in

the

Department of
just about

benefits, veterans' payments, pub¬

Commerce

lic

ready for another advance. Those

assistance—all

of

those

have

that

we're

who think that a rainy day is
help in stabilizing the
economy in recent months. Money coming may very well find them¬
and credit have been eased, and selves out in the sunshine with
their
overshoes
on.
We
think
the
economy
has thereby been
there's a solid basis for confidence
stabilized by that.
Businessmen are backing
But these assistance payments today.
been

of

it
♦Extemporaneous

Schwanz

Company, Inc., Merchants Na¬
Building.

tional Bank

the tax

We're taking advantage of

Chronicle)

Cody is now with A. M. Kidder &
Co., 506 Florida Avenue.

toft

think
see

built-in stabilizers in
—

in

direction.

Joins Kidder Staff
to The Financial

made

steps are in the right
direction—a stimulant to business.

you'll

(Special

has been

Such

And

mingham, Ala.

en¬

been sold without enthusiasm

far.

Harold
Allen, partner in the
investment banking firm of Allen

was

has

an

about

&

has

Nothing

you

ways

Allen

-1

Be Enthusiastic—As Emer¬

told

thusiasm."

Banks,

'

many

months in

sur¬

prised at how few customers know
which refers to the borrower and
which to the lender. Watch

ings bankers can't afford to forget
that very important fact if
they

have

you

Affairs—we're trying to help in

You

talking

be

that

most

have

which

have to lick yourself. We can
help
the
department of Domestic

have

Did you ever use the words mort¬
gagor and mortgagee when

that mutual

his

down.

guage of the customer and not the

language of banking.

in

in

as

•

use,

realize

have

Harold

the

much interested in

ably the principal
business
has been

der, the middle class, and our
youth.
Our youth are especially
few years

salvation

own

But at
least steps have been
taken in the right direction. Prob¬

Talk to the Right People—

a

Lothair Teetor

prosperity.

would

The right people include those at
the bottom of the economic lad¬

important because in

we
have no crystal ball
Department of Commerce,
but we have lots of figures. We
have buildings full of statistics.

way—it is this which brings

problems

like

Ruth had to keep swinging at the
ball in order to hit it.
We have

(2)

growing.

Now

our

There

history was also the world's
champion home-run hitter. Babe

dryers,

dresses,

in

be

clothes

grow.

in

that

made—not

that, selling—hard, real¬ to keep swinging at the sales ball.
istic, constant selling—is needed. This is no time to sit back and
Competition is tough and i.Sj get¬ say, "We're in a recession; we
ting tougher. Everyone who has won't spend time or
money on
something to sell whpther.-.iit be promotion." •
automatic

nation's vital forces

our

They can only grow as
take away the deterrents that
would keep them from

is going to solve
problems. We believe
going to take millions of in¬

We

go

do

autos,

to

we

ments

Harold Allen Elected

Be

vate

We want

don't

The

the

belief that they can help you do a
better sales job for your bank.

(lj

predict

country,
events have proved him to be out¬
standingly pessimistic.
been

prosperity are useful pri¬
jobs. We want employers,
employers, new employers.

many

in

ing out his

grand

our

create

We

immigrate.

to

appre¬

ciate that sort of
thing. Jobs that

You might be interested in a few
that I
have
drawn
out
of
the
Office
of
Business
Economics

than that because every time

anyone

is to try to keep out of
your way.
think you businessmen

of

all

this way; no need to use
these new fangled promotions"?

things this
is doing. One of
principal things they're doing

any

What a
selling job we -have
right ahead selling our complete serv¬
any of ices to these folks! I can't
sa,y any

done

which

year,

promo¬

endless parade

an

a

I

dividual plans—each fellow work¬

us

billion
sum.

do have many

we

Administration
the

Depart¬

merce

over

running at the

now

master plan

satisfy stretching before us, with 7,300
thinking more people daily joining it
thap
Is he still using drop out of it.

"We've

We

$15

sizable

a

year

one

will

ball

current

save

today.
the

They're

realize.

us

this

than

faster

done

antici¬

can

10%

up

of

So

dreds of thou¬

promotion

But what about his

earn¬

savings have greater confidence
in spending current earnings. The

you

What to Expect

or

make

vast

more

used

is

you

sands"

at

1953.
rate

hun¬

on

like

Our statisticians tell

Noth¬

Not of Faint Heart—
though the job might be
tough and get tougher, we've got
to keep trying to sell. The cham¬
pion striker-outer in all of base¬

these

on

and

But

its

we

larger than most of

They're

government,
a depend¬

time-proved
hard

are

but

about

cepts.

1940

on

business.

much

j done an outstanding job of selling
I've
never
tion of the vast increase in sav¬ anything—ideas,
goods, services— pessimist.
ings that has taken place since have all been guided by six pre¬
Since

de¬

own

billion. This reflects the continua-

Pearl Harbor.

a

it is

that

Look at

by

$25

not

pendency

way

chimney, the bowl, the wick day in these United States ap¬
Here's a lamp that's every
proximately:
bit as good as it was 50 years ago.
10,800 babies will be born.
And it gives just as much light
4,100 people will die.
today as it did in 1904! Yet no
85 people will emigrate.
banker would use kerosene lamps

quarter

close

prosperity

holder.

of 1954 which brought the total to
a

the

is

a

increase

a

of America. It

the

about promotion?
the old ideas that he won't discard

have

have

that

funds with interest in full.

Other

and

those

look at any kerosene lamp

maintain

believe

sell

tion.

a

to

easy

can

have

we

the resourcefulness of
businessmen

ency

be

that

me

on

to

kind of

ing

States

relying

ment of Com¬

grown

instance, since 1888 no mutual
savings bank depositor in New
Jersey has failed to get back his

records.

ment

you

can

working

bank

have

was

an

these

and

any

if

to

philosophy in this govern¬
today. It is a philosophy of

business. It's been my observation
that those banks that have tried

savings bankers seem par¬
ticularly to be afflicted with this

thinking. What is it? Take

or

bank

applying

precepts

some

precepts

formula

them,

all, bankers, beware of
kerosene lamp thinking. I'm told
by a banking friend or two that

solid basis for confidence and that

a

a

seems

new

to buy.

anyone

increased

by

than

Commerce

stabilizers in government, which have not been there
long."
It

hundreds

many

would

more

No set of six

Above

principles that under¬
job:

But

hadn't asked

Pesveyc

lie every good sales

buy.

of

bigger and much better development in the national
economy.
Says "We're taking advantage of some built-in
pate

sell more? Of course
Not every customer

you

would!

you

would

used.

C.

b y

basic

not

niques employed in merchandise
promotions
can
and
should
be

bankers

must

there is

bit of

isn't

selling merchandise. All of the
steps in the selling function have
to be followed.
All of the tech¬

rides

ings

simple,
showmanship.
A
little study will reveal to you ef¬

Selling banking services
and
banking itself is no different from

sell¬

automat¬

ically
high. (

exhibit in your bank is a

in.

on

Secretary

Stating! "we fee! in the Commerce Department that we are
about ready for another
advance," Secretary Teetor holds

job

banks

takes

spot and

Assistant

you.

changes
its
position. Pro¬
the

here

on

By LOTIIAIR TEETOR*

And what is show¬

manship? It's anything that makes
people stop, look, and listen or get
into the act.
Having a currency
effective

the

Upward
Swing Again!

ther, that for just one week your
there an
extra
big employees asked every customer
facing mutual savings who visited the bank to buy one
banking itself? The 31 States that additional bank service from
And

the

no w,

We Are

can't

of those services.

more

little easier.

a

by banks.

from

ever

we're

one

in

services

its services,

buy

shooting-war
era

bank's

fective forms of showmanship that
be they savings you can use in your bank.
accounts, Christmas or vacation
(6) Ask 'Em to Buy—Suppose
clubs,
safe
deposit rentals,
or that every
employee in your bank
trust department services. These was trained in
the right ways to
things must be sold harder than ask people to
buy. Suppose, fur¬

That's

suggestion that can be
banker—or to any other

a

the

enthusiatically

(5) Use Showmanship — These
days showmanship makes the sale

Gas Company, Newark, N. J.

value of sales promotions

acting

help selling

Sales Promotion Manager.

Public

Top

management and employees talk¬

ing * and

Thursday, May 13, 1954

Teetor
the
in

U.

before
S.

the

comments

Annual

Chamber

of

Mr.

of

Conference

Commerce

of

panel

Washington, D. C.f April 27, 1954.

with

tures

Yes,
much

real

for
we

money
in expendi¬
plants and equipment.
think that better and

bigger days

are

ahead.

Number 5324

Volume 179

...

The Commercial and Financial Chronicle

(2101)

what effects may result

Industrial Application
01 Atomic

sion!

Chemical

ton,

Engineers

I

anatyzed
problems
o f

in

Washing¬

the

technical

adequate to meet these expanding
needs upyto 1975 with little or no
Beyond

United States is

It

is

again this is
The fuel

ergy Commis¬
sion for an at¬

in

tack

have

these

to

to

of

replaced

after

Coal

With

already

new

the

demand

pected to rise
and

now

the

1975,

for

they did not look capable of
peting

with

fossil

fuels

able

use

and

in

the

mineable
mated

using

world's

time, the

Joint

only

Con¬

gressional
Committee

D.

Smyth

on

Atomic Enery

issued a report on
In speaking to
engineers, I naturally empha¬

the

subject.

same

the

sized

the technical

clear

power

aspects of

development. Today
emphasize the economic
aspects of nuclear power.
•

There

are

two

present. To bring these costs
down, chemical and metallurgical
processes must be

provements

of

The investment
build

economist

five

although
about

more

years

The

second

and

reason

thing I

about the economic fu¬

say

is

that

ture of nuclear power has
on

the

So

today, in

nuclear

every¬

they

be

that

are

to rest

assumption that various
technical problems can be solved.

nomic future

find

score.

eco¬

of nuclear power, I
myself talking somewhat out¬
side my field and on the basis

of assumptions
not be

or

may

right. In short,

may

remarks
speculative, which I hope

will be

will

that

be

not

held

my

against

me

safe.

located

be

Of

There

is

doubt

no

from

about

our

fission

ful.

of

uran¬

be

If
we

we

that

the

same

can

terms

covery,

be

At

of

dis¬

recent

rates

seems

a

for

present,

years

to

we

of

one

of

♦An

Third

new
address

Annual

ore

by

must
Mr.

be

Smyth

Conference

of

ress

to

to

nuclear

Now

Chicago, III., April 23, 1954.

let

seems
4

«'.

power

somewhere

eight mills

at
the
Business

advocates

the

probable

r

4

-4

-

k.:

I

*?
-

i

t

s.

i

t

'

.

Quite

I

,1

*

-

,

r

nomic

considerations,
reasons

which

units
I

this

in

plant,

once

months

built,

Harriman

■

in

,

It

of this

70,000

or

would be in nuclear power

Continued

on

page

24

y;.

y;';Vy

•

1;'V

y

Company

any,

share
from May 18, 1954

Glore, Forgan & Co.

Goldman, Sachs & Co.

Kidder,
Kidder, Peabody Ac Co.

Lazard Freres & Co.
Smith, Barney Ac Co.

Merrill Lynch, Pierce, Fenner & Beane

Union Securities Corporation

Stone & Webster Securities Corporation

White, Weld & Co.

Robert W. Baird Ac Co.,

Drexel & Co.

Hornblower & Weeks

The Milwaukee

Company

Lee

many

war.

very

y

Bache & Co.

Estabrook & Co.

i

Incorporated

Central Republic Company

Incorporated

(Incorporated)

Francis I. duPont & Co.

Dominick & Dominick

Hemphill, Noyes & Co.

Hallgarten & Co.

American Securities Corporation

Blair, Rollins & Co.

W. E. Hutton & Co.

R. W. Presspricb & Co.

Incorporated

'

Tucker, Anthony & Co.

Spencer Trask Ac Co.

William R. Staats & Co.

nu¬

H. M. Byllesby and
?

eco¬

is

< Incorporated)

Swiss American

the

also

for
/

Free¬
j

4-

a.-.f•»--11\ i!

Corporation'

Emanuel, Deetjen & Co.

~

Baker, Weeks Ac Co.

Johnston, Lemon Ac Co.
Irving Lundborg Ac Co.
ja

.

Mullaney, Wells Ac Company
Stein Bros. Ac

Boyce

Sutro & Co.

Putnam & Co.

Elworthy He Co.

First of Michigan Corporation

Hooker Ac Fay

J. J. B. Milliard & Son

Ilayden, Miller Ac Co.

Loewi & Co.

Blunt Ellis & Simmons

.Brush, Slocumb Ac Co. Inc.

Farwell, Chapman & Co.

The Illinois Company
h

Riter At Co.

Piper, Jaffray At Hopwood

Bosworth, Sullivan & Company, Inc.

many

McCorqiick At Co.

Kalman Ac Company, Inc.

Company

Laurence M. Marks & Co.

there are
make

run

"

Alex. Brown & Sons

William Blair & Company

G. H. Walker & Co.

eco¬

may

1 Report entitled "Resources
dom, 1952."
»

.

A. G. Becker & Co.

Clark, Dodge & Co.

conven¬

feature inherent
reactor designs which

ii1.!,.

A. C. Allyn and Company

Dean Witter & Co.

estimates

charge.
important in

There

F. S. Moseley Ac Co.

Carl M. Loeb, Rhoades Ac Co.

Higginson Corporation

Paine, Webber, Jackson Ac Curtis

nuclear power
can

W. C. Langley & Co.

of

* •

'*

at

more.

one-half

that

capacity,

dividends, if

Ripley & Co.

May 12. 1954.

t ! '

energy

or

Incorporated

Lehman Brothers

in¬

initial fuel

purpose

i''

mills

seven

assumed

140,000 kilo¬

or

produce

Blyth Ac Co., Inc.

country before they

dual

and

is

of

cases

The First Boston Corporation

can compete generally with con¬

four

this

costs

14%,

would

Copies of the Prospectus may be obtained from any of the several under¬
writers only in States in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

it desirable to build nuclear power

costs down

i

cost

general

special

be

'

only about
watts

Price $102 per

very

somewhat

apart from

of

:

power.
Again, as¬
suming 1,000,000 kilowatts in 1970,

offering of these shares for sale, or an offer to buy. or a solicitation of an ojjer to buy,
any of such shares. The offering is made only by the Prospectus.

an

Plus accrued

of

push the development of
this country.

could

^

compete with seven mill

conventional

($100 Par Value)

fully

a

from the purely

time

why
objective

.

to

in

en¬

must

These

This

review

me

I,

fallen

4.08% Cumulative Convertible Preferred Stock

nuclear

the cost of

by

plants.

its

kilowatt hour.

desirable

a
•

per

Case

have

Allis-Chalmers Manufacturing

power

our

future

are

on

to

illustrative

two

/

was one

of

we

ventional plants. A

around

cost

350,000 Shares

power

of

produce

power

show that,

get

seven

within the next 20 years will

bring

backed

Economists at the University of Chicago,




have

of four to

My general over-all assumption,
then, will be that teqhnical prog¬

percent.

Eventually, the successful discov¬
ery

would

to

would

1970,
only
to six mills and plants would be

the

'

nomic point of view, it is sensible

nuclear

mills per kilowatt hour.

in natural uranium only to

occurs

seven-tenths

costs

down to the range

only the
isotope which
use

devel¬

■

competitive

States,

This is not

to sug¬

as

price

progress

fluenced

coal-burning plants

United

power

assumption.

an

the

*

a

nuclear

burning plants
kilowatt hour,

to

widely

The

serious,

for

blunt

so

clear power in

become

conventional

over

plants.
Compared

unbiased

the

atively

in

that

1975

really does not matter

tional

regions with high
costs. However, these rel¬

with efficient

assume

have hope.

nuclear

would

power

hour

watt

program

coincidence.

a

goals

provide

To

reasonable

many

on

per

high cost regions might
locations for the
first
competitive nuclear power plants.

about
pay.

It

kilowatt
the generating station, the
nuclear

costs.

much whether the estimates made

confined to

power

have

to

course

from nuclear
mills or less

eight mills

market for

goal,

now

of

Uranium-235

rare

for

we

this

but it is

come,

mined

price that

assumption

...

Even at

must continue to find uranium

©re

In

achieve this

to

eight
kilowatt hour.

per

fuels?"

are

to

as¬

Incorporateil

be success¬

ventional

power

down

in

nuclear power prices could rea¬
sonably be expected to get down
to the 1
to 1.5 mill range.
But

hour at

generating

further

power

including con¬
struction of several large nuclear
power plants
by the mid-1960's

engineering studies

would

power

Our definition of success, our

fuel

per

if

thusiastic

the

cheaply enough to be competitive
wfi^i that from other more con¬

are

nuclear

specific

two

It

built

hours

documented analysis showing that

may

Both

opment

estimated

ap¬

none

an

be

ca¬

to be followed. Sev¬

objective, is to bring the cost of

We

three

that

mill

already doing so in
reactors, each dif¬
fering radically from the other in
design. * The question is: "Can
power
from
uranium be made

ium.

and

sionally been

fields

on

cases.

presumably ignore the price range
competition. I have occa¬

reactor

be successful, and

to make electric

the

is

kilowatt

than

Such

from coal

eral may

our

on

1975.

nuclear

plants
only if they have
advantage of one mill per kilo¬

will

from

power

of costs for

reasonable

as

areas

Several

impact

Energy Commission
its objective. Of course,

more

remote

are

be

the

that

sumes

somewhere between

as

is

gest

proaches

five mills in

five to 10 mills per kilowatt hour

are

prod¬

major

plants

range

could

Commission's

other hand

cost

plants

program will explore.

Uranium

technical ability
power

Fission

the

are

the

which
From

more

will

examine

studies,
not
only by Commission engi¬
neers, but by several private
power groups, show cost ranges of

without greatly raising costs.
These

Power

in

total

our

of

billion

competent

If necessary, however, these

processing

.

the cost of

as

nuclear power by 1970.
Case II assumes seven mills per
kilowatt hour in 1965 falling to

they

as

It is neverthless true that

process¬

fission

to

cost

this

of the

radioactive

add

has set

handle

unblushingly.
Electric

reactors

our

Chemical

will be
successful.

program

be

*'■/

;•

Atomic

power.

chemical

entirely wrong. Of
if I turn but to be right,

I shall in the future quote myself

the

ing plants may be somewhat more
of a problem since they have to
ucts.

if

I prove to be
course,

think

I

already

domes¬

our

between now and 1975?

will

or gas burning
plants is exactly in the range that

on

reasonably near the user. Person¬
ally, I have no doubts on this

discussing the

cheap

our

-

indicates five mills

built

and

from efficient coal

safe

so

1,400

This

relatively
small plots of land conveniently
near large centers of population.
The source of power should be
put

to

have been

we

that

assume

technical

I

three and eight mills per kilowatt
hour.

must learn to build

reactors

can

us

wide range, but 90% of

a

should

downward

present

we

cover

plants

expected to be generated

important factor in
high cost of nuclear

The

.Finally,

more

important

required to

to

The

modern

the

trend should continue.

expected

ever

nu¬

an

present

built

such

is
very
high at
Amortization of this in¬

power.

the Atomic Energy

on

know.

the

in

efficient

pacity.

reactors

vestment is

have

I

economics in

Commission than I
to

not

them

valuable

this
coun¬
level competitive with

economy

let

new,

to

present.

an

in

on

possible to achieve
clear reactors.

The first

learned

costs

be

before

What will

but with the cost of power
produced from conventional fuels
are

today than when I was before
the Chemical Engineers in March.
am

reduce

may

our friends
nuclear power

produced from

pushed

been esti¬

and coal added together.
me
confine myself to

gas

processes are constantly be¬
ing made by the chemical indus¬
try in this country. It should be

tion

that I

to

will

*•-

power,

simplified. Im¬

such

why I am
perhaps less happy in this situa¬

is

manu¬

at

reasons

reason

The

that

-

For

kilowatts,
plants,
■y
Under these assumptions, the
first competitive
plants under
ventional plants will not go up
Case I would be producing power
in 1963, and in Case II in 1966.
appreciably. Nuclear power will lead to the
building of a
plants will have to compete, not
In Case I, by 1975 the nuclear
growing number of nuclear plants
witn the average
present cost ot
generating power at competitive power component of the electric

charge of

a

build

as

But

facture and reprocessing of these
fuel elements is very expensive

nu¬

shall

I

small part of

a

tic

between 20 and 25 times
the energy from World reserves of

be replaced when

coal had been burned.

Henry

It

fossil fuels.

avail¬

reserves

uranium has

here.

help

can

we

to

a

power

the

Let

potentially

is

it

able to reduce costs in

next 20 years.
energy

than

long

try to

com¬

in

parts of the world
power is much more ex¬

that

them

be

in supporting
policy.
There

play
foreign

may

abroad

there

would

my

nuclear

many

plants

the next 20 years and the assump¬
tion that power costs from con¬

same

be

in

that

role

at different costs, one-half
are the

furnish

\

power.

important

as

the

pensive

good reason to explore other pos¬
sible sources of energy even if

small part of the potential

to

for

that

built in dif¬

1970, then perhaps 65% or 650,000 kilowatts, of this capacity will
power
at costs of five
mills or more.
The assumption
is that one-half of this capacity,
or 325,000
kilowatts, would be nu¬
clear since the cost
assumption

development, of

reactors

.is

where

ex¬

oil,

the

are

rising.

fuels

furnace had

At

years.

mind

sharply between

so

Therefore,

Policy

of

energy they contain—it is as if
the
grates in an old fashioned

about

sites.

assumes

are

example, if a capacity of
1,000,000 kilowatts is to be built in
:•

domestic * reasons

the

least

At

guar¬

cost

is

reserves

plants

will be nuclear if the costs

Nuclear Power and Foreign

pres¬

only

a

pushing

nuclear

Discov¬

the

five

for

isolated

at

have many

the

in

It further

power

same.

use

falling to four mills

by 1975.

adapted from similar units now
development for military

we

1963

power

mills per kilowatt

ferent parts of the country, giving

be built.

can

unddr

is

problems over
next

operating units

nuclear

assumes
seven

as

power

abundant, but its

fields cannot be

and

The

lived

picture

consumption.

new

anteed

finding

as¬

now

we

short

cal

American

ent annual

assumption.

an

are

be

hour in

practi¬

soon as

as

I

costs at

in

areas

Small "package" power units suit¬
able if or such locations might be

respectively 12 and 27 times

already

reasonable

be worth while

power

through the

elements

reactors

Case

.

isolated

are some

real
cost
will probably
go
up.
Proved reserves of oil and gas are

sume that
such a process can be
carried out at moderate cost, but

En¬

on

We

the

1975,

uncertain.

more

breeding process. We do
yet know how cheaply it can

done.

be

power.

increase in real costs.

isotope

common

uranium.

States

tional fuelsj which are 'the present
sources of energy* are considered

so-called

the

Atomic

natural

of

re¬

•

sumption of ^electric energy would
triple in that period.
Conven¬

thorium

Uranium-238, the

and

of

in

energy

.

of using the fis¬
and in

way

energy

not

announced the

plans

sion

know how to do this

de vj eloping
cheap nuclear
power

by some

up

that

quirements- in the United

ery

of

estimated

for all purposes would double in
the next 25 years while the con¬

limited to the solution of various technical
problems, Mr. Smyth, however, says there is no doubt about
our technical ability to make electric
poiirer from fission of
uranium. Calls attention to present large investment required
to buiid reactors and stresses importance of aiding our-allies
to build nuclear power plants as part of our foreign policy.
Furnishes estimates of our capacity to produce nuclear power
plants within the uext 25 years. Concludes, despite nuclear
power progress, it will be only a minor factor, and demand for
other fuels will increase rather than decrease, while atomic
power for peaceful purposes will not be a world-wide panacea.
Institute

as

There

The 1952 report of the Presi¬ this country where fuel is so ex¬
dent's Materials Policy Commis¬
pensive that nuclear power may

unclear power is

when I spoke

tions.

,

Prefacing his remarks bp stating that the economic future of

A few weeks ago,
the
American

Requirements

differ in their additional assump¬

possible for such reactors
atomic explosives as

produce

well

Member, U. S. Atomic Energy Commission

to

make it
to

New Energy

,

By HENRY D. SMYTH*

;

if it is at¬

tained.

13

Lester, Ryons & Co.
Mitchum, Tully Ac Co.
Schwabacher Ac Co.

Erach and Company

Quail & Co.

14

(2102)

The Commercial and Financial Chronicle...

Recent

Monetary Policy and the

the

important change that led into

simply

the

accord

Treasury

year

the

them

and

the

Federal

adoption

Government Bond Market

"flexible" policies of the Federal Reserve,
Knight points out that first credit restraint was applied
to stop inflation, and when this tended toward
deflation, the
policy was reversed, so an easy money plan was followed.
Says this policy is best in period of business readjustment.
Mr.

its temporary

adverse effect

mercial
I

feel

talk

foreign

a

when

feel

must

asked to
whose

as

before

he

is

audience

an

language he does not speak

1

nor

-

pernaps

does

the

dience

au¬

under¬

stand

his

guage

—

lan¬

he

honored

is

for

the

privilege,
but stumped
what to do.

on

I

know

the

that

Mutual

Savings Banks
J

•

are

rapidly

lmgrowing

have

now

mKn

about twenty-

*■
t?

^

■

Francis

I

f*ve billion of

u.

•

M. Knisht

not

am

dep0sits,

familiar

vestment

and

with

b

U t

in¬

your

policy,

know that

except
that 1
don't make ordi¬

you

nary business

loans; are not, with
exceptions, members of the

.few

Federal

Reserve System; you are
to be buyers of
long,

supposed

high

grade

gages,

and owned not long ago
ten
billion
United
States

over

bonds

and

governments,

slightly
can't

over

operate

but

mort¬

just

now,

nine billion; and you
in the State of Ill¬

inois, and yet here
shall

of

not

try to
but. will

we

talk
talk

are—so

I

lan¬

your

guage,
my
own,
learned in the field of commercial

banking.

The

two

systems

are

fundamentally closely interlocked;
what
and

actions

what

take

you

affect

us,

do, affects you, and
what the Federal Reserve and the
well

as

which

do,

is

affects

all

as

of

both

our

another

of

us,

customers,
of saying

way

the welfare and business of
every¬
one in the
country.
I

am

sure

when

me

I

banker and
have

full

a

say

with
as

of

the

flexible

the

Federal

the

operation

monetary
Reserve

of

policy

in

of

coopera¬

with

the Treasury on which
attention has been so

public

sharply focused for the last
and

half.

a

ing,

I

has

already

to

review

affected

government

well

year

In my talk this morn¬

want

States
as

a

a good citizen, should
understanding and an

appreciation

tion

will agree
that you,

you

the

as

how

the

this

United

bond

com¬

to

of

as

it

relates to national credit

policy is
responsibility of the

primary

a

Federal

Reserve

Board,

and the
Open Market Committee
that reports directly to the Con¬
gress, and of the twelve Federal
Federal

Reserve

Banks.

Also

under

The

Employment Act of 1946, the Fed¬
Reserve, in the sense that it

eral
is

Government

a

is

agency,

di¬

rected

as far as it can to help
keep
full employment of the work¬

up

of

ers

the

tect

The

nation.

campaigned

President

platform to

on a

pro¬

the

integrity of the dollar
fight
inflation.
Secretary
Humphrey has made his position
very clear that a sound, honest
and

dollar

is

the

cornerstone

of, the

Government's
The

financing
policy.
commonly recognized

most

in the monetary field for

weapop

fighting

inflation

is

credit

re¬

straint. Any new financing within
the banking system increases the

supply,

money

forces

of

feeds

inflation.

finance

to

and

through

the

Conversely,
non-.bank

in¬

vestors—that is to

say, with mu¬
savings
banks,
insurance
companies and individuals—does
tual

not

it

increase

the

actually at

supply—

money

times

may

be

de¬

flationary.
the

availability

of

strongly used,

vent

and,

actually pre¬
increasing their
Conversely, the Federal

banks

loans.
Reserve
ket

re¬

money

and thus raises interest rates

if

can

from

can

the money mar¬

ease

by supplying

to

reserves

member banks by

the

buying govern¬

ments

through the Open Market
Committee, by reducing reserve
requirements, or they can make
credit less costly by reducing the
discount rate—the

of

As

money.

cline
more

and

wholesale

interest
have

banks

cost

de¬

rates

and

more

loanable

funds, there is a
greater i urge for banks to make
commercial loans, an urge which
in

turn

spreads

entire monetary
ness

So,

throughout

the

system, and busi¬

is stimulated.
as

I

tell

the story of

A few days ago an out-of-town
banker stopped in to see me and
said "Won't you tell me in a few

words what made this government
market
go
down
so

tion, the policy

a

ago that it scared the day¬
lights out of us, and then last fall

year

go up so fast and
now

scared

high that

that

we

we

won't

adequate earnings at
yields?"
And
then,
he
"What's

going

on?"

now

I

to

present

added,

happen

from

that

presume

are

have

the

inflation started to become defla¬

we

was

reversed and

now seeing active ease in
banking system, the best cli¬
mate for a period of business re¬
adjustment and an aid in stopping
are

the

the deflation.

bank

the

six

released

the

Under the law, the

discussion

They

require.

questions
of

my

you

flexible

to

mone¬

answer

the

banker friend asked

me.

*An

address

by Mr. Knight before the
Meeting of the National Associa¬
Mutual Savings Banks,
Chicago,
111., May 10, 1954.
Annual

tion

of




free

markets

,

in

or

no

demand

and for

Federal

Reserve

forces

that

other's

Federal Reserve,

and

con¬

position.

The

reporting to the

'

A

Picture .of
Let

me

ture of

the

field

give

the

in 1951 with

you

briefly

situation
a

that

a

pic¬

existed

pegged market and

then you will understand
perhaps

the

January 20, 1953-: May I
say that in my
opinion you have an "All-Ameri¬
on

take

*

on

moment to

a

.

of the

senses

expression. I

know

interested

in

country as
loyal. The

a

moved

as

by

up

well

was

Statistics,

16%. Inflation

over

its way, and

on

had

we

Labor

of

pegged

a

long

so

market, the

Federal Reserve could only watch
from the sidelines while the

econ¬

continued
tionary path.

infla¬

along

its

part of 1949, when
threatening,
the
Douglas Committee held hearings
and

was

issued

ommending
the
to

Reserve

This

to

Federal

and

prices for

pegged

power

1950, rec¬
flexible policy for

a

Federal

bonds.

report in

a

would

government

have

back

control

end

an

the

members

believe

and

work

.for

lected.

that

they

which

They

customers.

"The

effect,"

se¬

were

the

of

their divisions

effectively
and

relations

the

our

legion—to work
American de¬

where the political "know

mocracy

keen

are

times

some

are

in

wis'dom

of

sense

public

important,

so

cause

to

us

may

at

question

of their actions which,

of

course, is our privilege — but
are trying to do the best job
possible under circumstances

they

which

times

at

go

discouraging.

are

the

Reserve—an

All

Reserve.

selling

is

And, although I am not as well
acquainted with the Federal Re¬

following

serve

in

they don't mind the
ahead; thus a wave of
generated,
knocking
_/■

sale of securities from

one

likely to lead
simply to additional sales from the
portfolio of

some

other bank. You

you

mutual-savings

when

see,

banks

other non-bank investors

or

bargains develop

see

picking
the

charging

as

bonds

up,

bank—and

down

deposits so that they must
securities, and so a grand, soft
develops.

market
Let

us

what

now

see

happened

actually
and
in

election

after

early spring of 1953. The Federal's
policy

of mild credit

was one

straint.

Banks

heavily from the Federal Reserve
immediate

and the

concern

protection

was

of the purchasing

of the value of the dollar.

power

In

January, 1953, the Federal Re¬
raised the discount rate by
1/4%— from 1%% to 2%. The pur¬
pose of this action
was
to bring
serve

discount

in

time

put

the

end

an

Team"

with

grand

a

periods

Reserve

districts

to

pegging and to give the market

you

a

certain

together, otherwise the Treasury's
new offerings
might happen to be

find

its

interest

levels

rates.
was

McCabe

of

amount

own

of

freedom

to

prices and

on

Shortly after the
reached,
Chairman

the

Federal

Reserve

that the two teams must work

made

the

in

Federal

by Mr. Martin who had been Sec¬

wanted

retary

trust

Treasury.

Mr.

Overby,

in

the

who

had

it

to

sell,

accounts

by buying;

been with the International Mone¬

ury

tary Fund, later

the Federal

Martin
The
accord

and

in

the

on

succeeded Mr.

Treasury.

Treasury-Federal
was

the

reached

market

in

Reserve

March

reacted

as

'51,
was

the

offering

was

overhanging

made

supply

long 2 V2S off the market.

which

They

in

in

March, 1951, to exchange their
for approximately
30-year
non-marketable
2%s.
However,
2V2S

these had

a

"mouse-trap" of fur¬

inflation

in them, too, due
they were convertible
at the option of the holder into

the fact

expected

the

an

one

Treasury's

might

or

a

could
are

husband

neutralize

when the Treas¬

number

wreck

as

of

ways

the financing.

entities

separate

as

and

wife, yet must live
happily and depend on

another.
two

Now

let's

teams

see

worked

how

when

a

pre-election

the

integrity

of

pledge
the

to

protect

dollar.

borrowings down.

holdings of governments by
billions early in 1953. As
the same s i t, u a t i o n—

part

of

of

which wanted

deot funding

could—offered

April,

non-bank

ness

monetary

policy/- In

a

period

of

better

money,

it

.

than

could

called

for

putting

on

the

brakes.

There were several levers the Re¬

and

excessive

and

fight infla¬
long-term
into busi¬

up

going

were

credit

So

mortgage

ex¬

restraint

the

flexible

3Y4%

pansion.

beginning
had

was
really
hold—Federal

take

to

started

contract

to

reserve

bank credit shortly after the turn

of

the

year—forcing

that

for

its

that

over

cooperate
a

pay

market

to

area

soaking

by

ernments

to

to

the

in

investors, and make its offering in
the
tion

pany,

with

had

meet

banks to sell

ready

it

whenever

place this issue with non-bank

lines

2%%

to

forward its

30-year bond

a

It

1953.

interest

There

much

to push

rates
Treasury,

program—that is, to

tration

was

interest

The

maturities

extend

to

—

rose.

of

Treasury- excessive demand for loans, such
large insurance com¬ as we were ir^ during late 1952
instance, decided that and early 1953, a flexible policy

do

kinds

all

If

could

credit

tightening

keeping the value of the
stable, instead of letting it
get chipped away all the time by
rising prices. The new Adminis¬
with-the Fed's policy of

posi¬

reserve

several

shorter term marketable

it

tight

mands, commercial banks reduced
their

notes.

a

of

Because

tions and heavy private credit de¬

That

meant

dollar

Reserve

certain
they cut their

of those banks that

funds

President Eisenhower had made

As you

remember, holders of the
long 2V2s were given the chance

when

financing in the market,
could be using credit

was

restraint

v

Reserve

area

in the bank area; when
Open Market Committee

the

Assistant

non-bank

offering

Board resigned and was succeeded

Snyder's

the

consistent

been

Federal

the

more

this

had

banks

heavy

borrowing

during

Federal

some

where

with

line
the

make

bank

and

costly

in

rate

and

rates

borrowers,

that

to

of the

Federal Reserve and the Treasury

Bank officials suggested to

At

accord

re¬

borrowing1

were

Chairman. It is apparent to all of

1951.

an

a

go

theii*
sell

American

of

by

with

reached

March

report—

you

buy

you

account

your

commercial

prices fall,

them

Treasury and the Federal Reserve

Douglas

bank's

quite

is

Washington, I can say for
them that they are also an "All-

the

then

However, when bank reserves
in generally short supply, the

member

However,
nothing
conclusive
happened until March of the year

at

notes, then bonds.

other

American Team

paying

down first the price on bills,

the
Federal

is

so

loss and

for

welfare

their- good

to themselves

say

,

in

pay

they

the

They

government

intelli¬

patriotic, honest,

are

loss, in order

a

least 52% of the loss, or a lot more
with the excess profits tax still

start

are

with

even

go;

to get money to lend to

and

put the

with

bonds,

or

personally

whole, unselfish and
difficulties they are
encountering
i n
administering

how"

s

In the latter

inflation

of

most

shorts

then as
their shorts have been sold, they
will attempt to move longer notes

portfolio

come

with

can

loss; first, they start

their

Treasury prepared to

the

to

Pegged Market

in

gently organized by the Secretary
to perform efficiently the specific

ther

power.

could

commodity prices kept on going
up.
In the four years ending De¬
cember, 1950, the broad index of
wholesale
commodity prices
moved
up
by more than 22%.
Consumer prices, as measured by
Bureau

letting

are

they got into action.

informed

bond

rates

they

governments

minimum

a

Then followed the Presidential
election, and a new team in the

of

manage¬

return

a

can" team in the Treasury in both

I don't have to remind you

their first impulse is to sell what¬
ever

direction of credit policy.

these

debt

Commit¬

;r...

to

the

ing applied to member banks, and
they are short of required reserves,

autonomy in the

conversion

for

famous

of supply and
high degree of

a

of these

true! For if credit restraint is be¬

respond to changes

more

natural

Banks
none

since

which

interest

and

Treasury

in

for

the

Douglas

together

possible

in

the

that

actions affect you,

a

of talent lined
flexible credit policy

Reserve

conditions

You may say

an array
a

with

once

adding to the force of
they had lost the initi¬
ative of buying bonds or not buy¬
ing bonds as general credit condi¬

would

quite

behind

prices

were

business

now

Reserve Policies

Savings

the mutual sav¬
ings banks. True but yet how un¬

offered

the

the

cut

bonds

more

been

on

actions

Federal

Affect

1952.

ment

inflation,

and

no

tee's recommendation for

under such.a policy.

tions

later

year

How

price pegging. The re¬
port itself was generally in agree- -

"an engine

as

that have

the

were

The

a

But

expected with a drop in long bond
prices; at the same time a special

Congress, handles the monetary
policy without regard to and in¬
dependently of the Administration

'52

credit.

money

in

was,

these

loaning power in the ratio
thus diminishing the
supply.

6 to 1,

or

bond

and against

to

to

amounts, there
on

scale.

Federal Reserve is responsible for
the
monetary
policy
and
the

tary policy will, however, make it

vember

up

money

matter when offered

no

banks'
of 5

re¬

increase in the cost of

an

reserves,

1951—the

and

purpose,

reopened

man,

reserves

of

its

banking system, which

sults in

$1,264

own

types. By taking reserves out

ous

of the

Patman
came out, greatly
strengthening the resolution of the
Federal Reserve System to take a
firm
position in control. In the
hearings conducted by Mr. Pat-

equivalent

an

amount

then described

was

each

a

happened since No¬

thus

the

of inflation"

sider

I trust that

has

and

what

brakes

may

what

pos¬

of

the

profit¬

investment

1952,
report

country.

bonds,
in

other

be done.

This made

amount

provide

time—March,

During

So long as the Federal Reserve
had to stand there and take the

each

of

Re¬

the

May,

by

Federal

five

still

like

prevent

of

Banks

minor

below the
commercial

investments

and

times the

about

can't

the

Savings

fact,

expansion in commercial

increase in
in

to

increased

were

of

purchases.
an

loans

take

it

order

order

reserves

serve

policy; each makes its own
decisions, and yet they must keep

but

market in

declining

amount

sible

ment

minutes,

gov¬

In the process,

pegs.

banker is echoing what you would
all like to have me tell
you in
two

in

from

accord

what

happened in the last year and a
half, you can see how credit re¬
straint
was
applied at first—it
helped to stop inflation—then the

terribly

prices

that

served

compelled to buy these gov¬

omy

Obviously, credit restraint
duces

the

the

I tell you this,
the Mutual

note

At

the money to make the
loans, the Federal Reserve found
ernments

the

country.

in

on

after

more

I

convertible

loan

dumped

and

and

new

loss,

a

than

even

still

because

to

When, for instance, in¬
companies or other in¬
new

could pull—raising reserve
requirements, raising the redis¬
count
rate,
selling
government
bonds from its portfolio or even
by not buying government bonds
to supply reserves
to meet the
strong demand for credit of vari¬
serve

million of them.

well.
side

5-

take tne

be

less

and

would

for

still

be

commercial banks.

demand

as

another

into

loans, and add more fuel to
the
inflation
fire, because the
buyers of the notes would be the

get

itself

welfare of the nation

had

you

was

opportunities

market

economy

there

2V2S

it

funds

from the
and the

vestors found attractive

Perhaps a few observations on
general principles would be help¬
ful before going further. The eco¬

we

Treasury

care

in that market

would

would

longer

able

surance

Principles

nomic

in

the story.

General

on

back

You had demand money
Government
at
21/2%,

But

economy.

Observations

wonderful

2%s

the market and

There

it

loss

ernments

banks, will aid in stabilizing the

somewhat

diplomat

savings institutions and

on

it

reasonable

Team," and
policy, despite

in

loss.

1951 for you and everyone else to
have the long 2V2S pegged at par?

money

"All American
easy money

and

monetary

stability of the government mar¬
ket made for a similar stability
in the corporate market, so with

In reviewing recent

points out Federal Reserve's recent

Reserve

flexible

a

its

convert

lVz% marketable notes, sell

but

Wasn't

By F. M. KNIGHT*

an

of

the

policy.

Vice-President, Continental Illinois National Bank & Trust Co.,
Chicago, Illinois

Calls Federal Reserve Board

between

Thursday, May 13, 1954

showed
was
or

restraint

commercial

3V2 billion gov¬
first

six

months

in

certain

Business

year..

whether

power

in

signs

not the

had

of

real

a

not

brakes,

faltering.

question

of

"Fed's" credit

operated

and

with

instead

of

.Volume 179

Number 5324

The Commercial and

...

Financial

Chronicle

(2103)
*

t*

x

T
fighting inflation, there were
slight signs of deflation. Many
banks were fully loaned
up—the
prime loan rate of commercial

other

issue

close
It

to

the

award

loan credit

1,

had gone to
'72 that a few

2.58%; the 2.%s of
years
back had been
par

selling

were

90.

pegged
almost down

A bank

couid

buy

five-year issue and get
2.92%. On the quote

tically
could

sheets,

bond

doubt that the power of the

working

with

exercise

credit

bites;

slowed^

it

helped stop

the

"Fed,"

Treasury,

restraint

down

interest

prices

to

to

to

Economic

National

Policy issued March 15,
1953, by the Research and Policy

Committee of the CED.

policy,

fiscal

"Monetary

policy

and

debt

management should all contribute
to

the

goal of economic stability.

In view of

its

relative

flexibility,

great reliance must be placed on
monetary policy as a principal in¬
strument

for

preventing inflation

and deflation. In

ditions

the

should

pursue

policy.

But

pared

to

con¬

authorities

tight credit
should be pre¬

a

they

this

reserve

promptly

should

policy

of

the

FederaL Reserve

Sys¬
mu¬

tual

understanding between the
System
and
the
United
States

Treasury give

think that

reason to

effective

monetary

pursued

in

the

policy

be

can

difficult

years

ahead."

that

the

threat

and

over,

it

inflation

of

time

was

to

was

reverse

Or

provide reserves for esti¬
private credit needs and

financing requirements.

In

addition, they lowered reserve
requirements by about one billion
hundred

million

July 9,
playing an important part in re¬
vising its policy quickly and sup¬
on

plying to the banks the reserves
they needed to underwrite
the
Treasury's cash offering of
$5.9 billion tax 2 V2 % certificates

which

of

July

and

6,

increase

in

for

the

loans

expected
the

in

later

And

it

here,

how

out

important

is
the

to

Treasury co¬
the Federal Re¬
prevent deflation. If the

with

operated
serve

to

financed

Treasury

bank field with

in

the

non-

long bond, as it
did in April, 1953, it would have
been competing with other bor¬
a

rowers

for

such

home and

as

borrowers
self.

available

purchasers,

farm

with

and

borrow from

To

mortgage

business
that

it¬

source

might be deflationary, whereas to
borrow

the action of the stock
would

basis

it

rate

1%%

l1/2%

to

the

business

a

supply

money

stimulant.

It

and

is

in¬

teresting
to
observe
that
the
Treasury's two cash offerings in
the last half of

1953, following the
in policy, were

"Fed's"

reversal

both

the

the

in

banking

When

area.

that no long
forthcoming—
and notice, there have been none
so far this year—it began to dawn
market

term

on

bonds

realized
were

the investors that there

reasonable
a

doubt

change

monetary

that

in

was

there

policy

the

and

no

had

started

to

go

flexible

debt

agement to one of active
market

When

Federal

the

Reserve

it

1913,

in

passed

was

are

banks

not

and

Provision

law

the

man¬

ease.

up

The

sharply

steadily—you

all

pened to the market and to inter¬

rates—the

2V2S,

and




every

practically all portfolios and
tempting capital gains to be taken,
1S

un¬

current

earnings

loiwf1r yields- And don't for-

that

get

the

life

average

banks'

commercial

to

the

portfolios

less than four years in

trast

of

the portfolios

sharp

con¬

of the

mu¬

savings banks whose con¬
earnings are assured by
mortgages and by long-term gov¬
tinued

ernment

other

and

bonds.

So

the

pres¬

are

they

control credit in case of

of

tion

a

inflationary

the

were

in

These peo¬

the

member

the

there

was

Morton Weiss Joins

Singer, Bean & Mackie

what Washing¬
doing with easy money and
yields, those of us who under¬
stand what they are doing should
back
up
the
two
Washington
teams, the Treasury and the Re¬
ton is

low

serve.

If business

improve

the

be stimulated to

can

by

having

money

easy

"go

lose

ahead

in

the

even

—

immediate

for

long

Morton

ments

were

needed

ative

reserves

except

central

the

still

no

no

over-invested,
position to make
the

at

flexible monetary policy can help
to

keep

us

wouldn't

gladly
rather

even

Or would' you

Washington

who

keel,

even

willingly,

welcome it?
have

on

all

go

in

out

government

spending, increasing
taxes, and deficit financing?
Don't forget that for 20 years that
of

had
over

been
one

going

on

in

—

a

little

Morton Weiss has become

ment

of

Inc.,

40

York

City.

and there.is a

its

own

initi¬

from

While

bank.

we

f-e

mayi~""D.

minimum
time.

on

26-20-14

Since

then

tw'^p

or

and

Eastern

Trip to Pacific Goast

budget this
heavy cash fi.

n

,

,

BOSTON, Mass.

,

ijiancing to be done in the balance

Parkpr

—

Chairman

What about the mutual savings
bankers

high

who

grade

have

bonds

portfolios

other

and

of
in-

President
vestors

William A.

of

is

no

of

Incorporated

making

are

,

Son

^

.

.

California

and

latter part of May and early June,
The

of

purpoSe

visiting

and

flexible

adjust

the

If

3.

consistent

be

folios

loss

were

improved. And the de¬

reached

market

bottom

This announcement

of

earnings

monetary

policy

ii'

nor

eommerno

great

the

flexible

doesn't

settle

/

,

,

Incorporated

Parker

,

,.

for

Investors

Corporation,

First Mortgage

Mr.

panied

Robert

H.

control,

Reserve

McCrary,

Vice-President of the

Parker Corporation.

buy these securities.

Company

Bonds, 3% Series due 1984
Due May 1,1984

is

in

requirements

The

downwards?

The Federal Reserve Act says
that in order to prevent injurious
credit
the

expansion

Board

or

by

may

be

an

-

HALSEY, STUART k CO. Inc.

re¬

argument

as

SCHOELLKOPF, HUTTON k POMEROY, INC.

be

truly flexible, let them flex them
down as well as up. I admit that
can

.

to

timing of the change; surely
cash
financing estimated at-

12.5 .billions
now

year

and

will

serves

in

to

be

the end

call
the

done

between

AUCHINCLOSS, PARKER k REDPATH

STERN BROTHERS k CO.

GREGORY k SON

FREEMAN & COMPANY

INCORPORATED

THOMAS k COMPANY

MULLANEY, WELLS k COMPANY

of the calendar

additional re¬
banking.system to,
for

such

regulation

change the requirements as to
serves.
If their policy is to

there

Prospectus may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.

contraction,

May 11. 1954.

'

the

be accom-

Price 98375% and accrued interest

>

.

nation-wide

Devens will
by

west coast

Dated May 1, 1954

And now,

.,

wholesale distributors. Mr. Parker
and

is not an offer to sell or a solicitation of an offer to
The offering is made only by the Prospectus.

Iowa Public Service

.

distribute

$7,500,000

exercising a
why doesn't it

these

vestment dealers who

a

rate-reduction

restraint, where are they?
22-19-13 and 6 against the statu¬
tory
minimum requirements of
13-10-7

,

the

during

credit

to

In-

visit to the

a

loan

the

longer need for

Board

the

major cities of Washington, Ore-

they have been

economic conditions.

i

on

.

for

for-

Securities,

Parker & Devens

cash

the

,

by

6%

New

was

increased denuding

or

when there

Weiss

cial loans—who will have

large imports of gold. In fact, by
May 1, 1937, they were boosted
to

Mackie,'.

were

created

reserves

Mr.

&

Place,

along at" higher yields
that the investment yields of port¬
came

depression, reserve re¬
quirements were raised to absorb
excess

Exchange

cities is to contact the many in-

in

the

Singer, Bean

depart¬

r?St,mw^S
^Uh ? J0"® aver-age
life?
Who do not have
prime

be¬
by which

borrowing

on

by

trading

Inc. and J. Arthur Warner & Co.

strong possibility of

the

year;

the

with

merly

cut its spending rate by $12.3 bil¬
lion1, lowered taxes by $7.4 billion

fiscal

'

l

with

the government has

year

balancing

asso-t
-

dated

higher yields. Many tax switches
were made,
but it was as refund-

banks,

way

Weiss

depression

system, if require¬
raised, could regain

banking

AU-American teams, the

Federal Reserve and the Treasury,

resump¬

pressures.

over

bankers object to

,

investments

higher percentages, a
stronger credit restraint could be
on

enthusiastic

monetary policy and
management policy of

debt

our two

With

put

be

flexible

if

income, I'll gain in
run." We don't want a
nor wild inflation; if a

to

the

tual

say

done

perhaps

can

portfolio, and
understanding

your

better

your

is

outlook

portfolio—we

with

do

and Charles Devens, newly elected

pressed

in

for

policy going back into credit
restraint, and you will know what

ple did not understand the mone¬ largely by the Mills plan, under
of
the
corporation
tary policy of credit restraint that which most
taxes come into the Treasury durwas being applied for the good of
the country.
ing the first six months, and prac;
And being pinched for reserves, tically none the second half. P

ings

years

in

requirements un'til the shortly after June 1; the Federal permanently into one of active
Banking Act of 1935. After the Reserve already had revised its ease. If the recession ends and our
moratorium, it was necessary to
policy, and had begun working economy recovers to the point
increase these percentages in or¬
toward
the
higher
prices
and where once again we are fighting
der to give the Reserve
powe[r to

tinuing

to ' rise

time

changes

with

outlook

position

Farker' Chairman ol the Board

additional

not made

was

appreciation

these

the

know only top well what has hap¬

For

permit

to

for

remained

percentages

changed.
in

3%

to

except

the

a

of this calendar year is occasioned

they

the central

or

and

everywhere.

money

t'^ese

Chicago,

cities

reserve

trimmings, and,

the

will be in

you

to understand and watch the flex-

gladly
though 1

few

inflation,
ible

now

for

15

r

the complaints are that
we are back
again to the old market with all the

and over-loaned of

for

ac-

have.

now

last

low

How

So

we

the

badly in the "red at the
market!

which

reducing

has
our

yields in the market of

ease

by

,

country,
city and 13 for New

reserve

of

lower

tive

n.

m

-

for awhile what bank, be it com¬
mercial
or
savings, would
not

other similar remarks.

money.

Reserve—7

Would

going to let this go before they
do something about it?" and many

were

the

with

course

Government

ent

All member
required to keep a
minimum of 7-10-13% on deposit
managing

twenty-four
now.

purchases,

the

the

Act

was

two bil¬

over

over

an

market value of

contemplated that use of reserve
requirements would become one
the most important factors for

the

,

month

in the middle of 1948
1950, the discount
been \Vi°/o and during

period, the bill rate had
been consistently higher than the
present
rate,
so
the reduction
merely adjusted the discount rate
to the already changed bill rate.

last September, and hps been con¬

est

a

from

to the middle of

*

been

less than

be

little

billion

one-half

not

In

Back

ago.

a

to

months, I find that I have talked
to quite a few of our customers,
correspondent, bankers, officers in
insurance companies, corporations
and individuals. I think they talk
freely with me and generally it
doesn't take
long for criticisms
and complaints to be made about
the Treasury's debt management
policy or what the Federal Re¬
serve
is doing. A year ago, one
would say "Why does the Treas¬
ury pay as much as 3%% on its
new offering?" "Just look at what

for the

be lowered

to

of the

both?

judging by
market, it

only logical

was

long period
obviously not

is

Central Bank

1941

market

the favorable
climate is
having its effect on
business.
With 91-day Treasury
bills selling on less than a
1%
discount

it

But

opportune moment
for the Reserve to cure both the
high reserve requirements and the
large portfolio acquired by open

that

appear

banks (decreased

commercial

from

increases

is

it

horse

a

in

and

putting it another way—easy
is a climate favorable to

cause

year.

point

lead

can

business recovery and

York

Treasury

time.

lion

money

They began in the second week of
May
to
purchase
securities
in

one

about

water, but you can't make it
drink. However, a horse standing
in a pond is more apt to drink
than a horse standing in a desert.

10 for

mated

can

government to own too much of
the debt—its holdings have in¬

Reserve's

You

a

essary reserves over a

Stop

doubt

no

accumulated

has

be expected to in¬
its portfolio to supply nec¬

crease

to

its policy lest deflation go too far.

order to

it

omy

of

And so by the month of May,
1953, the "Fed" must have thought

Reserve

sizable
percentage
of the
Treasury's marketable debt in its
own portfolio.
In a growing econ¬

hope that
easing the money market, it
help stop deflation. But
monetary policy alone stop

had

tem and the establishment of

the Reserve will have
adjust upwards again.

very

would

same

economic

be

can

Federal

is

per¬

During the War Finance period,

of

Policy

area;

to

room

creased from

There
the

rate

tion

the

Deflation?

that

a

the bills and continue

Monetary

downward

in

the

wise for the

Can

activity begin
develop. The present organiza¬

trend

to

inflationary

monetary

restraint,

com¬

payments, the
supply drops back to the

money

deflation?

interrupt the story by
quoting here from a Statement on
me

on,

financing

made independently of
financing, and neutral¬
open
market sales.
If,
there tis need for credit

cash

by

them for tax

use

can

Stability
Let

to.

be

the

banking

part of the adjustment

some

ized

for and buy
To the extent that

that

the

later

former level.

and

government

and

incentive

them, the money supply
will be increased, but as the ma¬
turity approaches and corpora¬
tions buy them from the banks,

by
Policy

and

hold

neces¬

bonds.

Monetary

tax

in

could
the

allowed, thus giv¬

issue.

new

banks took

extent

haps

really

rates,

of

which

on

was

added

an

business,

inflation, and

raised

sarily

lowered

much

seem

ing

bills

the

be bought at a discount be¬

low par! There doesn't

tax

to

prac¬

government

every

day

mercial banks to bid

yield of

a

the

or

done

at

three- to

a

par

interesting to observe
Treasury's offering less than
weeks ago of a
billion 52-

two

June

above

now

was

banks had been moved up to
3%;%
in April 1953. The 91-day bill rate

by

is

par.

*7 i

7 \

FIRST OF IOWA

CORPORATION

PATTERSON, COPELAND k

KENDALL, INC.

■

(2104)

Continued

jrom

that we are trying to heap another Quakers
handle 'the unemploy¬
ing diminution in the reservoir of
ment problem.. They
appear to
private funds available for capital inflation''upon an extreme infra-,
investments.
Borrowing
tomor¬ tion when the dollar has already show the way for T understand
declined
row's
business to stimulate the lost half of its purchasing power; they have consistently
A continuation of this inflation
any
government aid. Can't we
economy today is not sound. Ex¬
with a further loss of purchasing profit by their experience? I am
traordinarily abundant credit for

3

page

Additional Comments

"Full

on

device to power, no matter how well in¬
in high tended the purpose, and may well
lead to a flight from the dollar
gear,
is going to boomerang, I
enough work so that someone else think. In our area, at least, people on the part of the mass of people
will be laid-off before, he is. With are moving out of apartments and who will some day discover the
full employment, that incentive is older houses into new residences growing worthlessness of bonds,/
entirely removed. In addition to with virtually no down payment pensions, insurance, savings bank
that, if a satisfactory unemploy¬ and the monthly installments less accounts and all forms of creditor
ment
'".r'0;v':
compensation can be ob- than rent. It seems obviously un¬ wealth.
Sound money, free markets and
tained, there are many people who wholesome, and I can not see how
would prefer to loaf or go fishing it will fail to cause a serious de¬ the freedom of all to look afterj

lines, all this, that and the other,
including mechanized equipment
the

on

farms,

the 60

duce

would find that
people could pro¬

we

million

twice

much

as

155

our

as

million people

would consume. He
said, * "That's going to be your
problem; what are you going to
do with. it after you have pro¬
it?"

duced

In

I

the

had

the

opinion,

my

to whether

well

wish

I

an¬

but I'm sorry I don't.

swer,

not

or

the entire world, will con¬

as

to exist and

tinue

as

answer

country, as

our

along in its

go

present direction is dependent en¬

tirely
of its

the

of

solvency

the

on

American

It has lost 50%

dollar.

within the
past 20 years and unless some¬
thing is done to stop the trend, we
may
find that it will lose 50%
more
of its purchasing power
purchasing

within

the

power

happens, then everything is gone.

I

was

in

much interested

very

article,
"Full
Employment
and Its Bangers," by Dr. Wiegand.
the

He

the

covered

certainly

a

I

his

agree
rea¬

think

I

all

a

from

work

ting

a

I have to take my

their

the

of

died

husband

number of

a

and

down

Wiegand,

role of government is
people those things

the proper

for the

to do

who, when
leaving them

•

people cannot
readily do for
themselves. If,

practically sold our soul
in this country for security and it's
no bargain at all.
WEEKS

SINCLAIR

You

the

as

very

provoca-

will

Harrison

JL.

/rniuur

that

we

look

and

any

take

must
not

tion

It

has

reading

think

has

done

showing

that

PIPER

an

Corp.

Wiegand

excellent

of

some

of the Full

Carl

Dr.

the

in

job

weaknesses

torical

treatise

subject into

I

years,

stimulate

ment

Act

and

that

un¬

the

some

in¬

an

borne

in

realize

this, but
job de¬
pends upon its scarcity. Water is
the most valuable liquid in
the
world, but it isn't rated very high
because
When
kill

there

thing.

is

he

in

his

is

doing

If, in

discharged and

can

plant,

course
we

a

much

so

employee

an

time

thinks

anything in

a

of

loaf

it.

and

he

often

very

smart

of time, he is
have full em¬

ployment and he can go out and
get a job just as good, the old job
has

no value. To
successfully run
country with free economy, it is

essential

that people exert them¬

selves

to

smart

employee

earn

a

living
will




and

try

presented

whole

human

well,

as

resources.

to

any

do

&

enthusiastic
with

cord

complete

s

~

/

fools contest;
r'

is

best."

ly

ic

control

Stalin

ler

wages,

A

may

collapse

-

be

brought

of

the

To
the

of

mandate

by
which

hypodermics,
possibility.

is

are

another

doctrine
a

credit

manipulation

of the

has

much

How

with

purpose

the

inflation

ex¬

the
re¬

of

and

production,
profits.; Any

must

free

presuppose

private

enter¬

to

control

of

this

country

As

the dictators of Moscow?

free

Dr.

market

adjustments.

Wiegand points out, the

make

policy

purchases

should

be

longer

hence.

made

six

is,

I

today

think,

that

months

or

Certainly it dis¬
courages thrift, with a correspond-

peaks and valleys in business and
employment

are

cial

can

best

be

elimi¬

how to drain out of the finan¬
and

enterprise

system

the

postwar inflation so well described
by Dr. Wiegand. Instead, it seems

of

fact

cept

And

we

ileges,

ac¬

priv¬

our

any

of

in

a

them,

matter-of-fact
way,

then we

lose

them.
believe in

I

competition. I
believe

in

competition
between busi¬
C O rn-

nesses,

tween

Charles

A.

Ward

b e-

petition

in

men

competition
competition

business, and

any

jobs.
Only by
expect "civili¬

for
can

we

zation to advance.

LEWIS

SHEA

A.

President, The First National Bank
of Bridgeport, Conn.

Trust Co.

&

long will it be before the people
discover this continued deteriora¬

the economic

I

am

very

value of their savings

accomplished by interfering with
laws of supply and
demand and diminishing returns.

and seek to convert all their sav¬

Therefore, I subscribe to the

ings into tangible things for pro¬
tection? That will be the last big

doctor.

the

in

thoughts expressed by the learned

Isn't it just

Communists

the

have

A. L. IIAMMELL

pre¬

President, Railway Express

scribed?

Inc.

Agency,
BERKELEY

WILLIAMS

want to see
possible level of em¬
ployment in America but I have
always felt that private enter¬
prise can and
will
provide
Certainly

Richmond, Va.
the first place
nor

ferry).

In the

second

place, I

increas¬

an

ingly

inclined to

abun¬
for

life

dant

of our
people.
Gov¬
all

known

ernment

eco¬

than

the

can

exercise

well

the

limited

weather. Look

police

at

Al¬

of

im¬

regulation but

Edgar
Jr.'s

Analyst."
I

encroach

think I know,

the 7

ways

private
Berkeley

v
-

has long

victim

Hammeii

dictator of our day

of

post system.

suffering;

been the

subsidized

competition: through

and

been

L.

Incidentally, the express indus¬

Having thus disqualified myself,
I will proceed with "verdict first

have

A.

busi¬

to day economy.

try

government

the

parcel

The 82nd Congress

passed Public Law 199, effective
1, 1952, to reverse the trend

Jan.

conducted

of

his subject by great

on

a

of '

ness nor as a

to

other six."

that

to

Williams

be happy are—"Keep out of debt
and you needn't bother about the

ments

be

as

competitor

or

.is simply that

not

permitted

All

know,

power

reasonable

should

car¬

"Market

toon

all

we

the highest

unanimous conclusion.

money

the

just

much in favor of "full
employment" but nothing can be

to

of the currently fashionable

the

with

agree

propriation of one-half of the pur¬
chasing power of the dollar in
recent years cost the people? How

doubtful. The superabunant credit nated by preventing inflation and
seems to me to be
causing people i booms. The real problems today

easy

when

it

economists
"worldly Philosophers" for
the past 150 years, from Adam
Smith to Joseph Schumpeter,
without
their
arriving
at
any

omy

ilege.

testimony after," which is my
policy.
Fortunately, the present Admin¬ \ Drr Wiegand's paper is an in¬
istration has so, far slowly moved
teresting contribution =■■ to argu¬

over

toward

The lasting benefit to the econ¬

of

end

hand- the
.

some

control

prices

as

deficit fi¬
nancing thus reducing the pur¬
chasing power of the money of all
savings—present, past and future.

mortal
Dr. Ivan Wright

prise democracy. Could this be a
part of the well' laid scheme to

on

economy

given

the

;

,

one-re¬

dislocations in the economy,
are
bound
to occur when

segments

such

F. Pitman, Jr.
•

collpctivist. state
sult.

the

and

of

years
Benj.

its

out

len

the

quire the elimination of freedom,

econom¬

and

money

the

about

"Full Employment Act" would

A

through

nomics

Hit¬

out

may,

Federal Reserve System and carry

about

fi¬

type.

the

inflate

is

on¬

of
or

carry

top

disastrous.

trol

and

government

I

part,

Employment,
having a job,
always
been
a
priv-

much in the past 20 years,

so

great

&

has

feel that "less

governmental

will, I fear, be

the

Of

Wiegand article andr

in

recovery.

am

operate

tation

a

acitivity

im¬

nally complete

thehigh

recent

either by taxes or borrow
them, and usually promotes non¬
productive enterprises at the ex¬
pense of the people, thus delaying
sound
economic adjustment and

has

Brown

1 read the

writer.

I am neither
philosopher (only a
superfluous John Q. Man in the
Street, long overdue on Charon's

this
plan¬

can

enter¬

ple,

In

put

con

in

or

Bigelow

President,

in¬

so

economist

with regimen¬

forced-draft

level

CHARLES A. WARD

must take the savings of the peo¬

to

Con¬

to

which

su¬

perimpose

of

on

country

endeavoring
by artificial

on

plot

gress

the

to

ized

or

The amount of savings
small that they have
no
significance. The millions of
individuals and enterprises with
savings will seek to invest these
savings
productively,
enriching
the economy and making employ¬
ment, while the government when
it steps in to create employment
hoarded is

eco¬

seems

pose upon

ac¬

The conse¬

means

It

out¬

over

ned

'

its

and

lines—a legal¬

views.

boom

Act"

consequences.

securities

in

boom for some years.

has
ably
analysis of the "Full

Wiegand

an

Wiegand

Company,

Dr.

g a n d

e

and

WRIGHT

be just as Dr.

JR.

dyed-in-the-wool

a

am

quences of

trying to
better their position in the plant;
others care nothing about
any¬
thing of that sort and are just
looking for their pay check. A lot
don't

Pitman

government's

employees

people

will

Antonio, Texas

abused.

centive.

the

on

PITMAN,

greatly

incentive

the value of

Since I

be

can

Pope:'

of government let

What'er is best administered

ployment.

what

Professor

"reactionary"—Tory, if you please
—it goes without saying that I am

W i

serious

kind of

of

F.

San

h

Everybody

that

our

New Jersey

whole

the

perspective and

President,

in

npeds

brings

thought

B.

employment
compensation
weaknesses

have

institu¬

highly.

Economist, Box 172, Montclair,

nomic

is

unsound

Piper

of

Employment

Full Employ¬

W. T.

so

that government

me

IVAN

have

felt, that the

and

of

vested

banks

in

prises are immediately on the way
to
provide production and em¬

tion

subject.

Employment idea. For

a s

lessons

Weeks

by Dr. Carl Wiegand,
entitled "Full iLVnployment and Its
Dangers." This illuminating his¬

President, Piper Aircraft
I

to

value

material

tive article

W. T.

regard to costs

article

the

much.

very

the

interest in encouraging the

an

as our

Sim-lair

enjoyed

are

correct

democratic

we

to

seems

utilization

nomic ills.
I

needed

being pro¬
government

to

and

the

for

tions which

me

jump headlong into
as a cure for eco¬

panacea

while

it

and with proper protec¬

history,

day to day

a

benefits

and

it

to

seek

think

I

with due

course,

I n

times

tain

who

This should be done, of

situation.

uncer¬

seems

cor¬

those

are

endeavor

should

ills

question.
these

then

duced,

another

is

seem

not

all

economic

d i-

n

goods which

it

cure

i

rect,

find
Benson

Taft

Ezra

but

e

which the

work cannot

ment is desir-

b 1

son

rea¬

unable to

running such articles in your fine

such

some

vidually

,

be congratulated for

to

are

for

people

Secretary of Commerce

the

which

them.

We have

HON.

need

which

'doing,' but

children, buck¬

supported

by

feeling is that

my

that

whether

"For forms

withheld from do¬

are

deposited

ings

With reference to the article

Dr.

full employ¬

a

million

5

or

easier

much

Alexander

of

duction and employment. All sav¬

Secretary of Agriculture

hat off to the

past

EZRA TAFT BENSON

HON.

we

agree

4

than 150
million, but why not study their
systems, for after all, in the words
is

people

ing their work in furthering pro¬

or

women

businesses

month.

per

a

the incentive for get¬
job is removed.

paper,

soning.

day's

.

unemployment insurance must be
granted,

sub-

and

of

administration

real

residential

in

cline

number of our employees,
very
small allowance for

large

ject
most
thorough 1 y
with

if we are going to get

reasonable

and

for a job, and

of looking

necessary

led

President, Berkshire Life Ins. Co.

entirely mindful of the fact that

estate themselves seems to me the right? /Mormons and Quakers seem to
the
higher
the
unemployment values. Evidently it is virtually road to full employment, and not have the know how. Is their sys¬
benefits are, the more of this loaf¬ impossible to sell a home five to dictatorship,
regimentation
and tem too simple and efficient for
ten years old and obtain a rea¬ controlled inflation all of which our politicians and bureaucrats?
ing will take place.
I have expressed myself rather sonable
down
payment. Buyers will lead only to destruction which
P. S.—"Business prophets tell us
crudely, but
I think you will appear to disregard completely is j ust what the Communists want. what's going to happen. Profits
It is strange that the idea still
understand that I feel that a cer¬ the price, and inquire only how
tell us what's happened." ;
tain amount of unemployment is much of a payment is required lives that savings by people and
instead

with

L. AMBER

HARRISON

keep the economy running

..

that

If

decade.

next

*

another

housing,

new

Employment and Its Dangers"

a

Thursday, May 13, 195*

The Commercial and Financial Chronicle...

16

further and further
into

ment

this

field

encroach¬

of transpor¬

and

I

crave

to

read

or

Since

that

time

great

fort has been made to repeal
'

law.

be

In

this connection

interested

comment

how the Mor¬
Latter Day Saints, and

by Dr. Wiegand
mons,

some

tation.

closed

on

for

booklet

in

noting

entitled

Private Enterprise."

you

the
"A

ef¬
that
may

en¬

Case

Number 5324... The Commercial and Financial Chronicle

Volume 179

(2105)

touched

lows But

reaction

new

since their

THE MARKET... AND YOU
By WALLACE

peaks were estab¬
several points higher.

lished

they continued to

seesaw

in

subsequent sessions in
ranges far wider than normal

The aircrafts fitted this cate¬ for them. Both have been de¬

STREETE

too, with Douglas trad¬ pressed

gory,

members of the list

ing this week a dozen points since the common dividend
was omitted in mid-1953 fol¬
peak.
skepticism
quite a reaction over a divi¬
lowed by omission of the pre¬
about the lofty level of the dend of less than half a dollar.
For the first time in a long ferred payment last month.
*
*
*
stock market, largely because
while the liquor shares en¬
[The views expressed in this
of the 65-point rise in the in¬
As a matter of fact, the
joyed some concerted popu¬ article do not necessarily at any
dustrials in eight months week was
something of a divi¬
time coincide with those of the
larity without anything too Chronicle.
without a worthwhile correc¬ dend one and the
They are presented as
payments
concrete
to
account
for it. those
tion. And a good bit of it
of the author only.]
put some rather widespread
There is

a

showed up
as

now.

is

in the trading this weight around

it

week

weeks

under its

lot of

on

the quality

several end of the list. Such stalwarts

for

has

Park & Tilford

as

Coast Line,

was

session with

one

ment of

some

Allied Chemi¬

a

star

on

❖

❖

improve¬

14%. American

cal, General Foods, Home

—

There

traces to the feat

the

that

Part of the caution around dications

some

were

in¬

protective

of the rails short-covering just before the

ally

promote

of their
spotlight and

one

members to the

of

one

these

this

week

was

February dividend meeting was quickly Texas Gulf Producing. On a
the bull replaced by new short-selling gain of several points it
on
the rather mild run-up
swing. There was rather wide¬
plunged to a new all-time
after the news. In the last re¬
spread disappointment that it
high reading by a good mar¬
Chrysler was far away gin. This is one of the excep¬
was accomplished without ob¬ port
the leader among shorts but tions to the
viously whetting the appetite
rule, since this
of the general public or even, the specific details of what issue, which reached a high in
has transpired will 1946 of only 18 today com¬
for that matter, that of the change
in

the

exceeding

level and confirming

have to wait on the next re¬ mands

sold-out bulls among
trading element who are port

many

the

waiting

Representing
First of Texas Corp.

DALLAS,

day in American Motors
which was its first show of

SfS

Celebration in Business

strength since the Nash-Hud¬

Machines

feature

The

son

the

of

International

week

stock pay¬
effective for

became

merger

trading purposes on Tuesday.
Despite an automatic slash of
67% points because of this

payment, the issue's previous¬
ly posted 1954 low remained
inviolate which is the best il¬
lustration of what recent

formed this new

unit.
%

%

Business

Machines. Its 25%
ment

1937

>:«

tion,

not

ing.

Mr.

become

Bennett

associated

was

with Estes & Co. of

formerly

Topeka.

More

*

❖

Rohm & Haas

to

which

co-

peak of 228 which is the
recorded since it became

a

•best

any

first
was

But the day
dividend was garnered,

erty Custodian.

the issue fell back to
the

in

time

quite

featured

publicly held in 1949 when strength.
released by the Alien Prop¬
the

Blue

a

yet appearing

The

refused to go

company

on

a score

and

*

the

were

the common

and

issues

in value in

started
of

a

on

a

rush

deal. But be¬

day was over it had

good

American

Chip Irregularity

du Pont and General Elec¬

become

with

Carl

Aiken,

man

H.

Street.

Na¬

upon

d

g r a

his

ation

u

from

Dart¬

transferred to the public utilities

department of the

bank in

He

Second

elected

was

in

the

in

public

1950

Vice

a

and

1935.
Vice-

utilities
subse¬

President.

-

with

served

States Navy

the

Mr.

United

during World War II.

Eddy Brothers Adds

Sher¬

(Special

'

:

Clarke

lege.
Initially assigned to the
personnel
department
he
was

connected
1160

F.

Paul

Col¬

mouth

to The Financial Chronicle)

NEW BRITAIN,

A.

Conn.—Charles
affiliated
Eddy Brothers & Co., 55 West

George

with

Halbert, Hargrove Adds

Main

become

has

Street.

(Special to The Financial Chronicle)

LONG

the

staff

Calif.—Robert

BEACH,

B. Culvyhouse

This is not

Thatcher M. Brown

has been added to

of Halbert, Hargrove &

Thatcher M. Brown, partner in
Brown Brothers Harriman &

passed

Co., 115 Pine Avenue.

away on

Co.,

May 2.

offering of these Debentures for sale, or an offer to buy, or a solicitation of an offer
buy, any of such Debentures. The offering is made only by the Prospectus.
,7,

an

to

$40,000,000

,

November 1, 1973

3%% Sinking Fund Debentures, Due
Price 101.45%

plus accrued interest from May 1,1954

Copies of the Prospectus may be obtained from any of the several underwriters only in States in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

BIyth & Co., Inc.

Woolen

gain as

indicated

agreements on any imme¬

worked

merger
out

information

and
that

had been
the
the

vague

chief

negotiating to dispose of

Kidder, Peabody & Co.

Incorporated

Merrill Lynch, Pierce, Fenner

Lehman Brothers

Smith, Barney & Co.

& Beane

Union Securities Corporation

Stone & Webster Securities Corporation

Hemphill, Noyes & Co.

A. C. Allyn and Company

White, Weld & Co.

Incorporated

Lee Higginson

W. C.

W. E. Ilutton & Co.

Hornblower & Weeks

Alex. Brown & Sons
•

Incorporated

..

.

b\"

Dominick & Dominick

Clark, Dodge & Co.

Central Republic Company

& Co.

G. 11. Walker & Co.

Salomon Bros. & Hutzler

A. G. Becker & Co.

Baker, Weeks & Co.

Langley & Co.

F. S. Moseley

Carl M. Loeb, Rhoades & Co.

Corporation

Paine, Webber, Jackson & Curtis

(Incorporated)

Laurence M. Marks & Co.

liallgarten & Co.

Weeden & Co.

Dean Witter & Co.

First of Michigan

The Robinson-Humphrey

The Milwaukee Company

McDonald & Company
V

J. Barth Sc Co.

Brush, Slocumb & Co. Inc.

Caldwell Phillips Co.

Mitchum, Tully & Co.

Lee W. Carroll & Co,

Crowell, Weedon & Co.

The Ohio Company

r

Davis, Skaggs & Co.

J. J. B. Hilliard & Son

Gefke & Co., Inc.

Pacific Northwest Company

Sutro & Co,

Shuman, Agnew & Co.

Wachob-Bender Corporation

Harold E. Wood & Company

Woodard-Elwood & Company

•s

William R. Staats & Co.

Bateman, Eichler & Co.

Tucker, Anthony & Co.

Inc.

Elworthy & Co.

Kirkpatrick-Pettis Company

Company, Inc.

Courts & Co.

McCormick & Co.

Shearson, Hammill & Co.

J. M. Dain & Company

Irving Lundborg & Co.

Estes & Company,

Inc.

Piper, Jaffray & Hopwood

Henry Herrman & Co.

Goodbody & Co.

May 11. 1954.

Cruttenden & Co,

Incorporated

Blunt Ellis & Simmons

Talmage & Co.

Spencer Trask & Co.

Robert W. Baird & Co.,

Kalman & Company,

Corporation

Newhard, Cook & Co.

Quail & Co.

Schwabacher & Co.

Riter & Co.

Swiss American Corporation

Stern Brothers & Co.

208 at tric, the skyrockets of a few executive officer of the firm
was

Glore, Forgan & Co.

Corporation

Harriinan Ripley & Co.

Goldman, Sachs & Co.

Chiles-Schutz Co.

diate

The First Boston

Eastman, Dillon & Co.

of points which irregularity column and both his 40% interest in the firm.




Herbert C.

—

has

the week

all sorts of rumors

merger or a

fore the

as

lost two-thirds of the

*

de¬

Clarke

quently

Incorporated

of Robbins Mills,
especially the latter. The

senior stock added some 20%

no
*

of

erratic

The

while,

low, for a net drop of al¬ weeks back, continued in the

most

DENVER, Colo.
Morgan

trading but due to
on the New York
Exchange shortly is

Stock

week

dullness among the chem¬
Incidentally went ex-dividend icals generally because at the
on
its own, a 40-cent pay¬ same time Monsanto Chemi¬
ment. The day before the ef¬ cal was carving out a gain of
fective date this sprinter several points, and Dow
added no less than 28 points Chemical, in favor for the
was

public

listed

in

out-of-ordinary promi¬
in the recent tradition nence. Nor was it because of preferred
what

its

firm

utilities

Clarke

to The Financial Chronicle)

(Special

reappear

which for this issue is a some¬
*

in

ted

a

Northern Natural Gas Company

along with Securities and Ex¬
a general
disposition toward ground on the day and was
change Commission require¬
far
from
in
jheaviness once the dividend
any position to
ments when the era of control
was
assured in other issues, equal either its 1952 or 1951
began and left organized
IBM was able to celebrate its peaks. The only concrete re¬
trading.
stock payment with a run-up sult was lifting it to the No. 2
$
rj4
of more than half a dozen spot on the most-active list

points.

i

a s s o c

with the

President

With H. C. Aiken

*

since its
listing was assured, the issue
highly selective markets re¬ has made
good and sustained
cently, the actions best calcu¬
progress in over-the-counter
lated to cause a market fillip
trading and moved into the
were, first, a stock split and,
mid 40's this week for some¬
second by a slim margin,
thing like a half a dozen
some
kind of merger. But
points improvement since the
with the announcement of the
reappearance was
arranged.

strength meant in the stock. Mathieson - O 1 i n Industries
And while there seemed to be union, the issue actually lost

The

Na¬

department

Royal Dutch. Largely because
of a flood of studies put out

%

of

Chase

tional Bank,
has
become

1930

representative in Dallas,

as

contrary note was
by member houses
Mathieson Chemical. In the
A

William

1

Vice-Presi¬
dent

Chase

with offices in the Wilson Build¬

40 points

some

*

oil

One

Brothers,

tional Bank in

First of Texas Corpora¬

with the

reached 10.

never

rather

•jC

was

action of note was a
spirited run-up on one

assuming only

positions.

Lehman

Street, members of the the New
Stock Exchange, have announced
that Paul F. Clarke, formerly a

joined the

Ben¬

Texas—Delton

has

Jr.

nett,

due early next week. higher. A more striking com¬
overdue brisk Among the other motors the parison is that the issue in

on an

correction before
new

price

a

Willi Lehman Brothers

Mr.

Bennett

—

course.

Paul F. Clarke Now

partment.
an

Distilling, Schenley and Na¬
tional Distillers
all promi¬
It didn't prevent the strict¬ Products,
Carrier, Freeport
nent among the "long de¬
ly technical achievement of Sulphur, Reynolds Tobacco,
pressed" issue s—following
posting still another new top Sinclair, Chrysler, Goodyear
along moderately. But they
for
the
industrial
and
Kern
average
County Land had to
are
all far under their best
after its ploughing through contend with these automatic
prices
of recent years and for
the 300-band for the second trims.
American, fbr instance, its
ifi
:Js
time in history. The rails did
best price was only around
The enthusiasm over Chrys¬
little, at least of technical
the low for the year in 1951.
ler's
confidence
in
continu¬
significance and are roughly
/
midway between the Febru¬ ing the quarterly $1.50 rate
although earnings for the
ary high of this year and the
Spotlighting of Two Oils
virtually identical highs first three months fell to 88
The oils, while backing and
cents—had pretty well run its
reached in 1953 and 1952.
filling for the most, occasion¬
*

17

t'*

j

18

The Commercial and Financial

(210G)

Enforcement of Laws by

State Experience in

is

Defending

Official law enforcement action
is

The

Right to Work
By

W.

R.

essential

not

to-Work

these

BROWN*

to

Jefferson City, Mo.

chosen

occupation

union

bership

be
by

State

right

work¬

denied

who
or

not

or

membership
in

raised

Legal

ef¬

forts

Right-to-Work

State

repeal

laws.

by

it this

in

State, that the Right-

our

has

Law

tracts,

has

charge

of

do

the

prevented

prevented
wish
.

to

dis¬

the

loyal

many

not

tant

the

join

labor

a

tion

Today 16 States have Right-toWork laws that outlaw all forms
of compulsory

union membership

agreements.1
South Carolina became the 16th

last

year

general

has

law

been

endum

adopt

fmult,
Help.

Laws

Labor

on

in

behalf

Battle

ernor

He

of Virginia.

the

asked

this law

because

laws

are

Survey

States Made

to-Work
In

of Right-

Experiences

of

order

this

correct

to

situa¬

tion, the Missouri State Chamber
of Commerce
of

has

actual

the

made

justified

in

His

of-the

experiences

Right-to-Work States to seek an¬
to the following basic ques¬

swers

tions:

(1)

laws

Right-to-Work

Do

really protect the Right to Work
regardless of union membership?
Or

the

are

laws

violated in fact

(2)

they

Do

being generally
spirit?

or

hurt

im¬

help

or

in

part

was:

nomic

growth

(4)

or

hinder it?

they destroy

unions

or

hamper collective bargaining?
A complete report on the

re¬

Do

sults

of

the Missouri State Chamber

of

this

Mo.3

only

There

in

available

Jefferson

time

is

City,

to

now

give

few of the highlights of the

a

findings of this
Do

is

survey

Commerce

rather

Big

a

obtained

than

American
bers

are

that:

the

is

mem¬

fear of losing their

no

which

ideas

express

contrary to those of the union

are

leaders. Under
our

This

Individual

compulsory union
agreement, the union leaders have
a

particular interest in whether

no

construc¬

not the

members

attend

union

They

Really

Are

of

Protection

Varies.

Letters from businessmen oper¬

ating in Right-to-Work States in¬
dicate

that for the most

part the

is

obeyed and the Right to
Work regardless of union member¬

ship is actually protected.

How¬

businessmen admit that

ever, some

the law is not always

.

."

.

contractor

that

added

Nebraska

A

the

But,
never¬

had

law

tives

contractor

the

of

"Most

union

the

accept

attempt

agents

wrote:

law,

but

Some business

the law

evade

to

through side agreements that the
employer will hire all union

ployees,
through

em¬

will hire all employees
the union, or that any
non-union men
hired must join
or

the union

jobs.

in order to retain

their

We have been successful in

keeping

such

of

out

side

agree¬

with
paper

in

their

com¬

industry

or

prepared for presentation to

^ne semi-annual meeting of the Academy
jof
Political
Science, New York City,
April 21, 1954.




have

states

laws

re¬

do
not
effectively
protect
the
Right-to-Work because they permit the
majority to deny minority rights.
The
Right-to-Work States are Alabama, Ari¬

zona,^ Arkansas, Florida,
Mississippi,
Nebraska,
Carolina, North Dakota,
South Dakota, Tennessee,
ginia.
For a description

Georgia,

Iowa,

Nevada,
North
South Carolina,

Texas, and Vir¬
of these provi¬

W. R. Brown, "State Protection

the

State

Box

Chamber

149, Jefferson

of

Commerce,

City, Missouri.)

2 Arizona,
Nebraska,
and
Nevada
adopted Right-to-Work Laws by initia¬
tive
petition
while
the
Legislature re¬

ferred

such

amendments

Arkansas,

issues
to

a

,

constitutional

as

of

vote

Florida,

Thdse issues

in

South

and

on

of

states

Labor
83d

merely

had

and

Act

Commit¬

Public Welfare,

U.

V

Experience
(Research

1953).

With

with

agree

Report

*
No.

certain
or

prin¬

union lead¬

to

Violate

Another North
the

time

same

written

showed

Court

by issuing

temporary injunction which en¬
joins and restrains the defendants,
a

and

to

n

agents,

employees
".
in

servants,

repreesntatives from

directly

Brown

a

union

any

Not

The

Subterfuges

provides

study

of

case

Self

at

case

that

shop

case

electrical

an

insisted

on

contract

a

60

days'

notice.

This

employer refused

after

old closed shoo provision

the

of

members from
union

to

the

use

provision
and

force

to

the

prevent

union

hiring

to

an

closed

shop without a
shop agreement;1

tion

Finney.

v.

non¬

it

a

on

labor, would

union

ployed

his

be

he

refused

to

in

occurrences

violate

to

as

the Texas

Have

Rejected

Right

of

It has, of course, been contended
almost every case involving a

compulsory membership provision
that the Right-to-Work

em ■-

Law vio¬

lated freedom of contract.
The

T^e

union.

a

won't work with

men

men."

Contract Arguments.

shop.

join

it

court

Courts

Thereafter,
Hawkins discharged Finney when
in

that

Convention

around,

manner

New¬

la¬
the condition that

bor journal

union
Federa¬

Right-to-Work Law.

Council to print their

only

written
a

injunctions worded to
prevent their recurrence in such

Building Construction

News

port

Trades

operate

State

a

The result of these

non¬

the

Labor

get

non-union

Hawkins had ob¬
with

to

Brown

telling

that "union

were

contract

a

al¬

men

through, over,
under the law; and the Secre¬
tary of the State Federation of
Labor telling Austin City officials

by subterfuge came before the
Virginia Supreme Court of Ap¬
peals in 1949 in t^e cast of Haw¬
kins

to

up

or

another method of evasion

tained

of

could

employees.

Still

get

attorney

law.

of

for union

area

trying

discharge

the

led

other contractors on the
job were working only union men;

cancellation

60-day

which

closed

Therefore,

that

shows

record

though

prohibited

working with

employees.

restricted

clear that the union intended

was

to

violence; beatings; threats; forc¬
ing non-union workmen off jobs;
throwing beer bottles at a busload
of non-workers; declaring the en¬
tire Austin City power project a

because

Right-to-Work

new

The union constitution

Court

occurrences

the

continue

to

injured

nerve

picketing of
construction jobs; refusal to han¬
dle or install products of compa¬
nies that crossed picket lines; mob

a

provision
time upon

for cancellation at any

the

have

t' is decH*m included

In

local

only

The
the

provision

union

case

which

to

appeal to them.

Taylor

subterfuge."

by

lengths

thwart such efforts if the

a

creating

as

the

6, 1952,

excellent

will go to evade the law.
It also shows t**at the courts will

Ruled

v.

contract

a

described

of

Feb.

on

another

unions

The Arkansas Supreme Court in
the

Shows

by the Texas Court

Appeals

parties

Also

Case

Root

of Texas State Federa¬

case

of Civil

Out by Courts.

1950 in

and

Inc., decided

compulsory

Other

.

tion of Labor v.[ Brown and Root,

Neces¬

illustrates

.

indirectly,
of ..."

or

provisions

Lengths to Which Unions Go.

Laws.

Carolina

the

con¬

membership
agreement is not necessary to vio¬
late Right-to-Work laws.

court

.

.

hours and working condi¬

wages,
tions

all

were

agreed

upon,

a

strike would be called because the

employer

refused

shop.

labor

.

to

to

agree

a

.

public

unions

is

confidence

being

in

restored.

This, in my opinion, is one of the
important achievements in labormanagement relations under our
law.

.

Tennessee

rejected this

Supreme Court

objection

very

suc¬

granted damages of $3?0 to

Nelson

"While

statement to

the

trial

in

concluded
I

have

fol¬

as

limited

own

decline

to

which

State. I

no

a

violence

fundamental

of

is

and

the

boast

basis

a

of

of

asserted

over

tarian

results

superiority
regimes. The
the

tenons crated

our

of

Evasions

The

Bill

of

Law.

accomplishments, is Con¬
justified in enacting
legislation which will strike down
proven

some

gress

to

now

of

which

under

the

Constitution

is

theirs, to preserve to all individ¬
uals the inalienable right to work?
The

answer

Most Laws

is

an

Courts

emphatic 'No'

Tested
Have

in

Courts

Effectively

and

En¬

Virginia

gone

Right-to-

Plumbum

L.

some

of the A. F.

Pipefitters'

and

demanded and

Union

obtained

agreements

cases

with

in
the

following provision:

ment

cases

in

the

of

preme

4 For

Right-to-Work

States reveals that the courts have

3

to-Work

of

a

see,

more

detailed

account

of

these

"State Experience With RightLaws,

Commerce

a

con¬

Tennessee

law

union.

a

and

of freedom

due

process

Court

on

Jan.

was

States

3,

Su¬

1949, in

the famous Lincoln Federal Labor
Union Case.
Courts Will Not Tolerate Disobe¬

The

the

Florida

6th

strated
courts

and
cases

to

employment, but

upheld by the United

Missouri

Research

State

Report

not

in

of

Packing

picketing
Company

court

of
by

Agricultural

Workers

contempt

that

disobedi¬

court orders.

Tobacco,
The

for

demon¬

1951

tolerate

involved

Allied

leadprs

Chamber

No. 22."

not

defiance

America.

Court

Circuit

Seotember,

will

or

Circuit

Judicial
in

"The
emplover
will
empioy This case
journeymen and apprentices who the Pasco
are in good standing
in the local the Food,

enforce¬

the

interpretation

contract

ence

forced Them.

review of the court

employment
The court

dience of Orders

There Local No. 10
of

that

This

Work Law.

has been don£ and

right,

the

group.

non-membership in
•

*

plumbing unions have

evade

certain

rather makes employment open to
all regardless of membership or

the

Virginia Bill of Complaint Strikes
at

due

stricts

dees not restrict

democratic process."

am

with

without

only if it unreasonably re¬

cluded

have

an un¬

interference

contract

process

favorite

totali¬

value

of

court

State police

a

regulation would be

freedom

their

The

Law.

such

constitutional

spirit of our
The protection

law.

minorities

institutions

power

the

to

Complaint filed bv
States, where Riqht-to-Work laws the
Attorney-General of Virginia
have been on trial, are similar to in a Richmond Court on
Aug. 7,
those
of Nebraska. With these 1953, reveals the extent to which

the

simply ruled

majority would thrust
upon him on the ground that it
knows what is best for him, does

confident that the results in other

States

Right-to-Work

association

an

my

giving the results of
my

to disagree- ment in violation of the Tennessee

citizen in his freedom
and

.

Mr.
lows:

A
22,

employee

or

cinctly in February of 1948 in af¬
"Third,
one
of
the
greatest Finney for 4 weeks of unemploy¬ firming a permanent injunction
The court, against the Teamsters
causes
of strikes has been elim¬ ment which resulted.
striking Joe
inated. The closed shop has been commented on the law involved Mascari, a wholesale distributor of
as follows:
one
.(
produce, to force him to sign a
of the primary causes
of
strikes. Although the questions of
"Legislation that protects the union shop and check-off agree¬

S.

Ri?ht-to-

and whose

such

of

request

to

em¬

and loyalty to the
without
question,

is

ciples of the union
ers.

an

who has been

years

because

cannot

Congress, 2nd Sess., Part 6,

Laws"

29,

at

Hearings" before the

3 "State

Work

7

"Taft-Hartley

3386.)

Oct.

the

Commerce

Gold water,

Revisions
tee

of

a
55% majority. (Voting
compiled by Council of State

Chambers

p.

were

Dakota—5

statistics

one

people in I the good which
South. Dakota. take
from
the

than

greater

competency

the

approved by .majorities
ranging from 50.6% in Nevada to 70.3%

Senator

fully

more

quiring a vote of the workers before such
compulsory membership agreements can
go into effect.
But these election provi¬

see

perhaps

"Fourth,

1 Several

he must fire

employ for

closed

ments."

O.

in his

employer

representa¬

State

they do not like it.

Senate.

♦A

Law.

helped their labor relations.

P.

Generally Obeyed, but

Extent

plied

Iowa

same

theless

Missouri

Right to Work?
Laws

law

this

=

Right-to-Work," CCH Labor Jour¬
nal, June, 1953. (Reprints available from

the

No employer wants

ployee,

of

Protect

the union.

Richmond

to handle this situation

their

North

in

Work to

Agreements

sary

persuasion this

by

free to think and act and

have

need

membership

coercion.

way.

Right-to-Work

sions,

survey.

Penalties.

courts

penalties.

now

sions

from

In¬

membership.

is

Union

The

provision which would deny

Right to

hesi¬

"First,

be told that

Do they contribute to eco¬

(3)

and

of members!

"closed

labor relations?

prove

tract

the

the

pre-empting

answer

shop clause that prevailed
previous to the passage of the

survey

a

maintenance

members.

closed

working out in practice.

Membership

amendment

constitutional

the result been such that Congress
field?"

union

the Right-to-Work Law.

its

affects

the

Committee, "Has

either

employ

non-union members.

Right-to-Work laws. In the same
year, a Florida Court applied its

union

operations less than it does other
industries

Gov¬

and

might

laws

so

provide that the employers

violating

down

contractor wrote

general,

State

to

as

any manner,

it

are

Are

his

contractors'

refused

closed shoo provisions under their

struck

a

petition route.2

or

of

State

1947

Written

Welfare

uniion

Carolina and Tennessee ruled out

the Assist¬

Public

and

of

jobs if they

Iowa

An
"In

but

Virginia

The

the Right

Invalid

Criminal

voked
In

Attorney-General of Nebraska,

tee

or

However, relatively little atten¬
tion has been given to how these

Maintenance

Provisions

which

Especially D'f-

Industry

and

full-fledged tion industry is strongly organ¬
Right-to-Work law on March 19, ized and has been operating under meetings; they either did as they
were told to do or lost their jobs.
1954, following a powerful appeal closed shop conditions in all of
by Governor Byrnes.
In Okla¬ the larger cities of the State for' Now the individual members must
be satisfied with the action of the
homa, Governor Murray has come many years. Generally speaking,
union or they are free to sever
out for letting the people decide
that condition continues to pre¬
their membership. ..."
through an initiative petition. It vail.
Although
contracts
nego¬
appears that other States, includ¬
"Second, a better relationship
tiated between the unions and the
exists between the employer and
ing Missouri, may use the refer¬ employers
do
not
contain
the
to

State

these

Early Cases Held Closed Shop and

a
better relationship has
developed between the union and

ef¬

very

unions

Nebraska

Laws

Robert A. Nelson, appeared before
the United States Senate Commit¬

is

Arizona

disobey the law."

to

Right-to-Work

The

example,

In April of last year
ant

employees

."

.

an

demands and the

of

State Protection

of

For

Attorneyssig¬

by

sometimes

are

Officials Noteworthy.

and I quote in

way,

Complete Protection in Construc¬
Extent

also

nificant.

textile mill opera¬

fective in curbing dictatorial

enact

to

opinions

General

effective

number

adequate

^

requests to change this clause

much

inal

"...

Brown

R.

Supreme Court of the

United States.

construction contractor wrote that:
W.

P>e

tell

lations.

Similarly

by

current

or

ality of their Right-to-Work laws
before

will

an

request."

that its powers were broad enough

forces

Right-to-Work

organization.

This is the is¬
sue

joined

Nebraska

court en¬

13, 1954

unless the local unipn fails

supply

upon

Work.4

to

Right-to-Work

in 1949 to defend the constitution¬

union?

lar

been

of the

some

Right-to-Work
how

to

The follow¬

so.

cases

fines

The North Carolina
decisions were especially signifi¬
cant because they involved crim¬

who

particu¬

a

lina, and

establishment of closed-shop con¬

maintain

enforce

to

and

ing brief summary of
forcement

union

Work

member who did not maintain 1 is

to-Work

can¬

join

duties

when asked to do

about

to

But, even in these cases, they the law through credit unions and
usually add that the law is a big "service" charges.
help in improving their labor re¬ Support of

here

do

have

relief from vio¬

Right

injunctions

through

laws. For example, the AttorneysGeneral of Arizona, North Caro¬

part: "We know from contact with
a
number of organized industries

be

officials

the

have been in protecting

area.

tor put

this

courts
have

to give

of

the North Carolina Attorney-Gen¬
eral ruled out attempts to evade

A Tennessee

Or

State law?
should

not

of

mem¬

protected

ers

regardless

the

to

such protection.

conscientious in carrying out their

of the experience of states in enforcing their
"Right-to-Work" laws, Mr. Brown finds: (1) the laws are
generally obeyed but the extent of protection varies; (2) that
the enforcement of laws by officials is helpful, but not essen¬
tial; (3) that Nebraska and Virginia have had noteworthy
support by officials in the law's enforcement; (4) the courts
have effectively enforced the laws they have tested, and have
ruled out subterfuges; and (5) that unions will go to great
lengths to evade the law. Claims Right-to-Work laws have
helped to produce more peaceful labor relations and they do
not hamper collective bargaining.
a

directly

appeal

Some

to Work at

Rightbecause

not failed

lation

permit the individual leading

usually given

In his survey

the Right

make

to

effective

laws

laws

for protection and the courts

Research Director, Missouri State Chamber of Commerce

Should

Officials

but Not Essential.

Helpful,

Chronicle.. .Thursday, May

Union

held

of

court

immediately obeying

a

of

union

for

court

Number 5324

Volume 179

The Commercial and Financial Chronicle

...

t

order

to

lation

blocking

cease

and egress of

the

the

of

ingress
in vio¬
Right-to-Work
company

has

helped labor relations because

we

do not have to argue between
about whether we will have

us

Anti-Vio¬

union

lence Statute by at least setting a

tracts.

Amendment

and

the

maintenance
It

has

in

con¬

our

also helped the in¬

Locations
Texas

in

the

considered,
lature

M ?

Oklahoma

and

decision

the

failed

tinued

pass

compliance

dividual

worker

Right-to-Work

instead of just paying lip service.
A few comments from the court

pressure

that

pending there, and this tipped the

him

to

opinion will illustrate the phil¬
osophical basis and necessity for

in

union

such

bles in Arkansas than in other in¬

is indicated

dustrial

nessmen

personal

example

of

injunctions:

"In

present day society la¬
are recognized
by law
affecting the public interest,
and are charged with a public use.
our

bor unions

as

a

There

join

in, avoiding the
might be put upon
union

a

to be

seem

rates

"A Tennessee

for mob violence.

proximately

125

"The evidence here is clear that
certain

of

these

respondents

by

of their actions and in wil-

reason

.

.

.

less

than

union.
it

it

one

50

Right-to-Work

plaintiff.
"The
tion

the

and

to

egress

premises

of

the

...

of

consequences

such

that persons who desired

to

work at the

plaintiffs plant were
prevented from doing so, and the
"Right to Work' Amendment to

the

Florida

Constitution

previ¬

ously referred to for that period
of time

tion

rendered a nullity.
necessity of terminating
effectively the defiance of the de¬
was

fendants; to
the

avail

orderly

to vacate

themselves
the

of

processes

of

the

on

contrary, resorted to mob
and openly defied and made
mockery of this Court's order.

rule
a

"The
not

public

only that

acts be

also

interest

such

requires

contumacious

effectively terminated, but

that

such

in

acts

the

future

toe deterred.
"Such

a

requirement
in
the
interest is imperative.
If

public
any

group,
whatever

however named
guise,
can
with

punity invoke
and

flout

lawful

then

rule

mob

the

to

or

in

im¬
defy

authority of the
of our State,

government

the

overthrow

of

our

gov¬

ernment

by force and violence is
no
longer an eventually to be
feared, it becomes locally an ac¬
complished fact.
."
.

U.

S.

.

Supreme Court Upheld Re¬

straint of Picketing in Viola¬
tion
of
Virginia
Right-toWork Law.

The

most

recent

United

States

Supreme Court opinion on State
Right-to-Work Laws on March 16,
affirmed

1953,

Court

preme

holding

the

of

Virginia

Appeals

injunction

an

Virginia

Su¬

in up¬
against

.

.

Fortu¬

.

damaging fric¬

contractor

"As

we

our

labor relations

erably.

wrote:

it, the law has helped

see

policy consid¬

Our employees

they may
remain that way anywhere in the
State of Virginia."
Florida

The

State

Chamber

of

forcing the
bor

on

of only union la¬

use

that

the

of

labor

fourth

that

resulted

Right-to-Work

gbod effect

a

relations
it

in

the firms stating

Amendment had

their

representa¬

Florida

Florida

Louisiana, for instance,

as

simply

had

and

had

on

one-

effect.

no

preted this to
an

Florida

shop

open

and

years

that: "In view

mean

the fact that

of

State
such

was

has

time

the

because

Industrial

Supports
west

as

Right

to

had

effect would

no

has

resulted

open

shop."

in

that

mean

it

continuing f the

to

-

Overcome

Its

ment Commission and

of

that

State

the

effect

him

by

Not

Stopped

or

in

of the
rant

union membership
no categorical
States

can

shows

unions.
away

That

the
helped

is

available

have

would

be

letters

from

labor

sity

on

ac¬

their

Right-to-

growth

slowqd

manufacturer

the

union

to

the

value

of

be

businessmen

operat¬

This announcement

neither

is

has

sell, the

require
worker on;

collective

proved

making for

the experience
Right-to-Work States war¬
following conclusions:

a

bargaining

an

tween management and labor.
5 See

W.

R.

Labor

CCH

Brown, "State Legislative
Violence and Coercion,"

relations.

Government

Law

Journal.

(available in reprint form

is

made only

by

tions

policies since now it
though less agitation is

seems

6 "The Relation Between State

Work

Laws

(Missouri

Research

gives

and

State

trial

Economic

Chamber

of

and

made to

a

class in Indus¬

Development at the 1953 sessions of
Institute

for

Dallas, Texas.

securities.

The offer-

the Offering Circular.

Offered as a Speculation

Prudential Finance Corporation of America
(A Delaware Corporation)

an Iowa engineering
contracting firm wrote: "The

has

$100,000 Twelve Year 6% Subordinated Debentures,

Similarly

curbed

union

many

their

representatives

somewhat

more

their claims and

to

be

thoughtful

in

activities.

helpful from

Fully Registered, Series A

ac¬

Dated April I,
Interest

Due April 1, 1966

1954

payable quarterly

on

April 1, July 1, Oetober 1, and January 1

It has

our

PRICE 100% and accrued interest

stand¬

point."
Application of State Laws to Rail¬
A

roads.
While Section 14b of Taft-Hart¬

ley and the Supreme Court deci¬
sions leave

no

doubt

as

to the ap¬

ered

by

Taft-Hartley,

there

is

railroads.

doubt about

have recently ruled that the Rail¬
way

Labor Act provision exemot-

ing

railroads

State

to-Work laws is invadid.
U. S. Supreme Court

heard from

on

Right-to-Work

laws

But the

is yet to be

"The Texas

Right-to-Work laws
the

Anti-Violence

for

Statute

Limitation

brought

an

Organized and Unorganized

One of the best evidences as to
the effect of

Right-to-Work laws
labor relations is the experi¬

ence

the

of

under

such

companies operating
laws.

Letters

from

businessmen in the

Right-to-Work
States who operate all the way
from 100% union to 100% open

shop all indicate that the Rightto-Work Law has helped improve
their labor relations.
An

Arkansas

company

wood

Texas

of

any

of

our

neighbor¬

enforce

their

demands

through violence and brutality." 5
Do

Right-to-Work
Hinder

Laws Help

Economic

Right-toWork

The

Company was organized on April 2, 1954. The nature of the business of the Corporation
objects or purposes proposed to be transacted, promoted or carried on by it, are to
manufacturers, distributors, merchants, and others and to make advances or loans to

and the
finance

corporations and others, either with

Laws

the

undersigned

velopment in

on

an

JOHN C. KAHN COMPANY

At¬

1108

are

having

a

States which

This business

case

in

in

N.W., Washington

(6), D. C.

a

Please

sehd

consisting of

me

a

of th<? Offering Circular relating to the offering of the
and Class A stock of the Prudential finance Corporation

copy

common

Debentures, and Units
of America.

NAME

.

Address

pdint there is the
of

Street

ex¬

and markets. 6

location

Sixteenth

April 29, 1954

a

pansion has resulted in increased

recent

which

industrial de¬

those

have such laws.

may he obtained from the undersigned only in States in
legally distribute it.
\

may

Growth?
are

There is growing evidence that
favorable effect

without security.

Copies of the Offering Circular

Expansion of Business.

Right-to-Work laws

or

or

traction for New Industry and

wages

stock.

PRICE: $2.00 Per Unit

have

legitimate unions they do give
to those organizers who

wrote: "I think the law industry




non-voting stock and one-half share Class A voting

of industrial peace
that we think is un¬

While they in no way
hinder the organizational attempts

As

products

$0.01 per share)

offered in UNITS, each consisting of one share of common

the

and

Statute,

are

pause

LaWs Hurt or

non-voting stock—^ar value $0.10 per share)

era

matched in

Companies Say They Help.

on

common

50,000 shares Class A voting stock—(Pa>r value

other labor laws, such as

and

Help Labor Relations?
Both

100,000 shares

The above shares

Right- ing States.

this question.

Right-to-Work

con¬

this way:

would
Do

engineering and

the

Picket

Nebraska and Texas State Courts

from

of

fect

plicability of State Right-to-Work
/laws to interstate businesses cov¬

Texas

struction firm summed up the ef¬

$3.5

Gainesville,

million

Texas

City

State

—

Right to
Growth,"

Commerce

Report No. 25, Nov. 18, 1954)
and retail trade statistics.

ent."

law

1953

wage

7 Statements

ISSUE

pres¬

Dec.

from Missouri

Chamber).

offer to sell nor a solicitation to buy any of these

ing

rela¬

labor

our

by

better balance be¬

way:

helped

been

laws

any

the

labor

Unions in the South indi¬

NEW

as

the

otherwise, according to

put it this

"It

have

may

because

peaceful than they

A Nevada construction contrac¬

,

that unions

Protection From

ing in Right-to-Work States.
tor

evidence there

indicates

stopped growing in the
Right-to-Work
States,
although

Executives at

make

to

laws

or

not

of¬

is

unions

hamper
bargaining is shown by
experience of the Right-to-

Southwestern

laws

growth

Right-to-Work

not destroy

However, letters from busi¬
indicate that the Right- worker asks the courts to enforce
Right-to-Work Laws Have Helped
to-Work
laws have
The extent of violation
not stopped the law.
Produce More Peaceful Labor
union growth in their particular' of the laws varies with industries
Relations.
businesses.
Also, studies by Pro¬ and areas, but even where the law
Generally the effect of Right- fessor
DeVyver of Duke Univer¬ is being violated, it has improved
more

economic

Work States. What

Right-to-Work laws really
do protect the Right to Work re¬
gardless
of
union
membership
when either the employer or the

made.

to-Work

cited

collective

nessmen

relations

was

that Right-to-Work

encourage

(4)
do

few

(1)

overall union growth

Right-to-Work

Definite evidence

providing
an
attraction for
new
industry and expansion of
present businesses.

Chamber survey of

on

on

metal

em¬

by

Summary and Conclusions

It Down.

statement

laws

The results of the Missouri State

Slow

It is impossible to obtain accur¬

figures

had

Union

May

(3)
which

business¬

the

non-union

union membership
instead: of compelling
the em¬
adverse effect on ployer to force employees to join'
union growth in our company but unions
against their will. Righthave been a very great contrib¬
to-Work
laws
do
not
result
in
uting factor in maintaining some' collective
bargaining
being
re-semblance
of
balance
between
placed by individual bargaining—
management and labor."
in fact, they have resulted in im¬

Bargaining?

Growth, but They

Texas

not

to

Such Laws Destroy Unions

Hamper Collective

in

and

ployers.

put it this way; "These laws have

Passage
is
one

laws

recommended

operating

A

on

Midwest.

1

have

un¬

improve their
both negotiating

highly union organized

companies

bargaining,
laws

the

report

Businessmen operating

with both

Work States.

has

agency,

development.7

Have

collective

men

con¬

a

improve the labor situation in the

Laws

of

of doing

cording to letters from

Develop¬

now

favorable

Right-to-Work

Do

fact, instead

with

Labor

Right-to-Work laws have

means

decertifications

very

in

Chamber

operating and generally make

the
In

Right-to-Work

of the Kansas Industrial

emphasized

been

Fager, former head improve collective bargaining,

E.

to

there have

NLRB

Work

-

Eye."

Maurice

industrial

least,

Expert

Means for the Mid¬

a

by States; therefore,

has

amendment

Texas

Development

ate

the

the

as

tion whereas Louisiana's do not.

to

that

and

in the plant, it continues
legal bargaining represen¬

jority

tative of all the workers under the

of the passage of the amendment,
say

such

to

for more peaceful labor
relations.
This was found to be the case

re¬

Taft-Hartley Act.
Professor De¬
Vyver adds that in the South, at

many

the

than

reviewed

cases

State

labor relations in

abolishing collective bar¬

labor

been

for
at

in

laws give employers some protec¬

The Florida State Chamber inter¬

been very

the job.

industries

that

in

(2)

They Hamper Collective

Right-to-Work laws do not
sult

court

on

enforced, but

der State Right-to-Work laws
say
these laws greatly

to

as

migrant

dustries of Florida
firms

Do

rarely be counted

the law is

clearly show that the courts ef¬
fectively enforce the law and rule
out subterfuges when asked to do
so by injured
parties.

been

Rightthey re¬

Bargaining.

many

States

sultant

tive

have

not for the

because

gaining and a return to individual
bargaining as has been charged
by the opponents of such laws. As
in the Eastern States and Texas Professor DeVyver pointed out as
has
gained many more of the long as the union retains a ma¬

Commerce reported that a cooper¬
ative survey with Associated In¬
of

might

were

laws

can

Missouri

that

plant locations.
Almost invariably these industries
are fleeing from union despotism

that

for

Trades Council for the purnose of

advice

probable

course,

the value of union
membership
of
compelling the em¬

Nor

inquiries from Eastern industries
for

the

(2107). ,19

>■

that

see

,

.

have

ficials

con¬

ployer to force employees to join
unions against their will.

daily contact

we

have

instead

Texas engineer¬
firm wrote that:

constructors

unions

!

quire the union to sell the worker

case

a

contracting

"As

in

expansions.

example,

"Black

assured

unions of the

Building

business

they

are

are

of

to-Work

by letters from busi¬

who

Laws

tivities and has made it necessary

Richmond

ing

to

appear

picketing of the George Washing¬
Carver
School
project
by

ton

with

isolated

an

I'M

«

despite the Right-

growth

faster if it

on

be entirely satisfied in their non¬
union status and under this law

law -three-fourths

modify the temporary
restraining order. The defendants,
or

Law.
no

between

A

"The

fendants is readily apparent.
"No effort was made by the de¬

the

to

those who belong to
the union and those who do not."

ac¬

the part of the defendants

on

were

with

employees

This would not be possible
not for the Tennessee

nately there is

ingress

ap¬

were

prevented
from

of

belonging

full defiance of this.court's order
and

total

a

was

the Texas loca¬

That this is not

labor trou¬

less

printing company
of its departments

are

"

scales in favor of

which

'

laws.

is,

union

tion.

For

there

.

.

frills."

or

said that in

.

.

.

States, and any trouble
results only from disagreement on

"However, a charter issued to a
labor organization is not a license
.

to remain

or

against his wishes.

Law

It

proposed

a

most

to grow

to-Work

being
Legis¬

was

Oklahoma

to

that

cate

considered.

were

While

both

I 1; W

Telephone.

Commercial

20

The Commercial and Financial

(2108)
.1:

I

i.t

It

I

*

e

•».*

By S. J. RUNDT

Export and Foreign Exchange Consultant

minimum

the countries

President

Eisen-

hower told the world that "if we

in

fail

trade

our

tectionist

policy, we may
tail

in

In

all.

his

mes-

to

the

Congress

on a

sage

Mr.

regards a reduction of U. S. taxes
earnings accrued abroad to

liberal United

0n

States

American

foreign

economic

he

strategy,
that

said

"An

increased flow

United

of

investors

the

proved

by

Means

Committee.

chairmanship
A.

Daniel

would
yon

Moreover, the Chief Executive's
major, policy presentation toward
a specific
legislative program, as

has

House

been

Ways

protectionist,

the'tax

qualify for

reduc-

because

manufacture, import,
processing, assembling, servicing,
sales abroad and to the U. S., distribution
and

on

wholesale

a

trading

intertwined

in

general

and

scale

are

the

segregate them
in
qualify for the lower

Any attempt to do
in

result

cases

order
tax

to

rate,

could only
operational

so

aggravated

To what degree the Senate will

J.

S.

Rundt

Interna? Revenue

needed

fn terms
section^

ex-

pansionof
ternational

help

trade

greater pri-

h"gh level""?? thtefC "aln(Leliy™t°igreat?f P±
activity and employ- ventures^lSyto" pas" the^nthe United

maintain

economic

in

ment

in-

38%. The measure has passed the
House. This appears to be one of

a

States."

The

Chief Executive added that "such

in

gress

the

future.

nearer

investment contributes to the de-

velopment abroad of primary

Budget Message.

needed to meet

increasing needs while it

strengthen the

re-

ever-

our

helps to

economies

of for-

eign countries."
Mr

Eisenhower

S.

stressed

that

public aid,

the furtherance
convertibility
and
the expansion of world trade, he
of

currency

considered

the

encouragement of
private American overseas investments a pillar of his Administrations platform.
To^this end> he
re-emphasized that we must help
to close the dollar gap

ing

regarding

reform bill of which

taxes

is

taxation

of

business

in-

from foreign subsidiaries

come

from segregated

"as TubstiaTi^be'
lower
lower

than
than

rate.

He

h
the

also

definitinn
aeiinition

ro,-nniato
coiporate

regular

demanded

of

or

foreign branches

fnrpictn

Moreover
ivioreovei,

moval

he
ne

of

the

foreign
ioreign

on

a^ked
asKea

fnr
tor

over-all

tax:
tax

the
the

re
re-

limitation

eredit<?
creaits.

Further
rurtner-

more, he proposed that the flow
of private American investment*

t

ju

abroad

support
™

accept

can investments

.

be

given full diplomatic
that Other nations mav

so

so mat otner nations may

and

understand

suggested
the

p

ro

r

con-

work

■ityprogram
losses

on

ls tS

war
war,

In

of

do

new

Mutmf cl

thp

cover

revolution
revolution

age
or

restrictive

marketing

price,

production

arrangements

will

limit the willingness of U. S.
businessmen to invest abroad
and will
reduce

the benefits of such investment to the economies of
the

Throughout, the President

"Times"

termed

well

as

with

*

Commission

Policy.

His

endorsed
ment'

as

with

on

Fofeign Economic

requests
"in

the

by the Chamber

were

general

policies
of

also

agree-

adopted

Commerce of




inadequacies of the bill as it
looks at this time of writing, are

"ot e,x.p?c.ted i° ,be dealt with'
No re?ief f?r the Amtenca" overaeas. iriyestor is anticipated, no
sPeclal inducements are likely to
b.e offered, as regards the revi™?n s.
Per"90untry limitation.

1932,

apparent.

Unfortunate,
this

As

be valid

t

,here is

joker

a

forthcoming 14 point

foreign

y°eTd "f
^

i< written

for the

will

it

dividends

corporations

wholesale

con-

for

nor

i

of

the

tradin£r

e

among' 'the'

overseas

SSSSS ofA^iLn firms~
1 tax
reduction in its present form
•
,

annlirahle

P
factories,

.

.

by

crued

to

nrnfits

an-

P

.

..

mines,

wells

hv

retail

simifer

busi-

,

all

of

_

thirW

"of

establishments

—

~

ness

in

,

,,

foreign country." Thus,

a

.

from

the IT

S

whieh

nor-

exPOrts trom tne u. b. which nor
mally are the trail-blazers for
«IlhqpnilM.4,industrial inve<?tment«?

subsequent industrial investments,
would by no means benefit,
N

wnuld

the

suhsiriinripc

manv

L\°\ wouia tne many subsidiaries

of American
rommproial

which

concerns

rathpr

than

are

nrodne-

commercial ratner tnan proauc
any

—

naturally'rSt^reteU

and

Yet, such purchasing or
distributing and trading branches
again

are

the

tvoe

verv

of

branches and subsidiaries which
normally

precede

the

establish-

tive

Therefore,

about

(limited

to

it

as

is

the
become

incen-

reality
percent!), in

in

its original form, is not too likely
achieve

to

A,

iU

avowed

„

iniust°ice

of

tabllsbments

,,

a11

ln

likelihood

of

continue

ades cannot possibly be detailed
I" one article. 11 may, however,
be sald

in summation that they
definitely block the flow of pri-

a"1111"1?
vate funds

otherswhere

nuwui pii
shores to

from

This

our

is

especially

true

larger American firms

are

wnexe idrgex nn enun nuns are
forced to operate their various

es+abiishments

in

different

coun-

esidDiisnmenis» in uxuexexxi coun
tries abroad as if they were nonconnected

and

even

more

:

_

connected, ana even more so, in
instances where

investments

new

penalized

as

Ions

R

th

H

fatfon^n

t

nrpqpnt

r

many

wic_

ca^s SLcrimi-

nates against Americans operat'ng only in one country vis-a-vis
those established

in

several.

enterprises

This is the

continue

fn

to

It may be added that the Tenth
Inter

American

-

Conference

of

Caracas committed the 20 represented New Hemisphere republies to strive toward ultimate
.abolition

of

degrees

but,

double

taxation

unfortunately

by
and

not without U. S. official per;suasion, the resolution permits far-

reaching latitude,

The United Nations Economic
and

Social

report,

Council,

that

found

in

a

special

investments

abroad have become easier, or, at

their

b^en

status

Cal .^^evetoped area," Gen-

inadequacy of the projected ref-

because, in the wake of progres-

ormation

sively

benefit

All

of

foreign

concerns

from

the

.

investment

which

measure

are

to

in

its

the

as

over¬

highly profitable to the American

boom.

the case, if the

Americans have sunk about $1.2
in Venezuela,
$1 billion

billion

basic ingredient
of U. S. world leadership, a cor¬
nerstone of our platform designed
to help cement resistance by our

in

country is to be

friends

and

a

allies

Communist

to

encroachment.
Since

foreign

have dispensed

we

assistance

all

of

sorts.

This expenditure was responsible
for about 15% of our record tax
burden during the postwar years.
we are to terminate the grants,

If

of

if trade

is to take the place
non-public American
will have to be enticed to

aid,

more

money

past.
lish

abroad

than

and,

do

the

in

themselves

by

so

therefore,

continually de¬
outside assistance.

pendent

upon
invest
private

To

has

It will have to help estab¬
capital markets in areas still
to

much

it

cause

U.

can

cohesion

be¬

$700 million in Cuba
$600 million in Chile.

some

of

Latin American

our

investments,

we

admittedly

were

not very fortunate. U. S. property

expropriated

by extremist
Argentina, our capi¬
tal has for the most part yielded

regimes.

In

returns in several years.

no

More than $2 billion in Ameri¬
can

is

money

Europe,

fully

in

invested

now

half

it

of

in

the

United Kingdom where a momen¬
tous growth of U. S. private capi¬
tal

reflects

regard

our

for Brit¬
A comparably

ain's credit rating.

sharp rise in direct American in¬
vestments

the

is

being

Netherlands

registered in

and

their

in¬

of late, in Western Ger¬
is also noteworthy.
In
1929, our European direct
private investments totalled $1.35
crease,

many

billion; they dropped during the
depression
low

of

and

years

around

reached

$1.25

a

billion

in

1936; by 1943, they had again ris¬
to $2 billion.
Five years after
V-E Day, they were down to
$1.72

Investments

Peak

between

sure,

1940 and
private foreign

direct

our

investments

have

1946

million

some

In

en

At

tween

and

be good business.

Foreign

be

1950,

abroad

it furthers western

as

and

S.

To

funds

enlightened self-interest

our

as

Brazil,

and

was

1945,

$40 billion in governmental

some

and

doubled.

1951,

$630

some

abroad

went

Be¬

each

year;

U. S. citizens collected

$1.2 billion
annually
from
foreign
invest¬
ments.
Approximately
half
of
their
earnings
were
reinvested
abroad.
Between
1950
and
1953, our
capital exports grew by 30% or
$3.2 billion. In 1952, they totalled
$1.7 billion.
During
1953,
our

foreign

investments

amounted

to

billion, but in the past three years
they went up by more than 20%
and continue to climb.

the

somewhat

less

Up to 1950,
noteworthy decline was

most

registered

in

Germany,
Spain,
Since then, es¬
pecially Western Germany is recei ving
increasing American
Austria and Italy.

funds from private sources.
In the Middle
East, American

private

direct

investments

have

passed the $800 million mark.

Manufacturing Chief Field of
U.

probably

S.

Private

If

Investment Abroad

direct

our

foreign

but

private

investments

reached

$16

And
less
at

peak

of

billion.

yet,

than

have

abroad

all-time

an

around

4%

of

what

overseas

invest

we

home.

Moreover, a generation
ago, when Great Britain, as the
then
foremost
creditor
nation,
was
in our shoes,
her business
concerns
invested yearly beyond
her

boundaries

tional

2J/2%

income.

outside

our

third

of

her

of

na¬

We, today, invest
country

1%

of

only

one-

national

our

invest¬

constituting but 7% of
the global population, albeit
pro¬
ducing more than half of the
world's

goods,
1%

of

invest

to

were

national

our

(less than half the percent¬

come

age Britain did when she held

contested

leadership),

tional

billion

$2

to

would

substantial

flow

to

where

areas

annually

abroad.

a

the

less

would

Of

acute

the

this

portion
repre¬

peril.

pic¬
ture is not altogether discourag¬
ing.
Our direct foreign invest¬
ments after the past global con¬
flict,

are

even

for

the

tightening

operation
able.

had

regulations,

become

its

unprofit-

Investment laws of

varying

abroad

if

by

Two

of

by

the

foreign in¬
American

is

concerns

billion,
in

$5 billion leveL

value
made

now

having risen

close
some

past

four years, or
better
than
doubled
since
the
outbreak of World War II. '
American
in

their

mining interests have
in excess of $1.5! billion
foreign ventures, or 30%

than

more

eign

the

was

in 1949.

case

investments

American

transport

and

in

for¬

communica¬

tions enterprises, already in 1950
accounted
for
$1.4 billion.Our
commercial
soil

were

had

a

insurance

stake valued at

outside
The
the

our

of

States

protection

overseas

in

on
foreign
million, and

companies
$425 million

borders.

Chamber

United

tal

ventures

worth $760

American

Commerce of
is

asking for

of

investments.

many

American
Our

instances

unfair treatment

is

capi¬
given

by certain other

nations.

which

33%

Factors

Discouraging Private
Foreign Investment

following World War
makes adjustments

difference

United

cated

$5

30%

one

Americans.

1951,

book

petroleum
to

1950,

considerably above those

of the years

I,

The

vestments

more

present

plants, in
$3.8 billion.

and surpassed the

developed

Communism

most

un¬

addi¬

some

work

amount,

sents

in¬

to

later, they totaled $4.9 bil¬
They have by now reached

lion.

invested

we,

go

industrial

amounted

in¬

come.

If

into

years

invest

we

in

real

owned

are

Between

of all

States

abroad

In

mone¬

clarified-admittedly not always tary values.
to the investoi^s' advantage. In
A,t present, 25% of all U. S. im¬
associate firms of India, for instance, a rather typi-,
ports^ come
from
enterprises

Regrettably, this is not the only eral Motors had to close its plant

taxes.

of

only to

subject

more

Nevertheless,

othe^Luons whfch do
to
Lx ^L foreign

elect

well

as

economies of friendly nations
—and, at the same time,
was

export of private funds from this

overseas

Some Foreign Concessions

^axaUon6

burden

as

payment of local revenues.

as

a°roaa are penalized as long as
they operate at an initial loss,

that

not

will

the treasuries
all

ments abroad are categorized
to be on the books. The intricaby
apparently were still above the fields of
endeavor, manufactur¬
cies of these reSulations which yearly postwar average.
ing enterprises lead as a group.
have plagued our overseas inBy now, our aggregate direct Total U. S.
dollars sunk abroad
vestors for more than three dec-

*.

pnntfnne

would

°f tax "edits in this country for
imposts paid m other countries,

aim
.

Touble

governing the applicability

double

foreign taxation,
go abroad and compete

the solidarity

The hodgepodge of rules laid
down mainly in 1918, 1921 and

become

th^h1naHfQnneC°^men/?an°nS °f branches and
sional-free-en'te^rise Ran^all their °Wn CitiZGnS*
k

however,

.

have

those
fol-

.

represented material assistance to

Hemisphere, $4.6 billion of them
to Canada, where, in 1951, nearly
1,000 of this country's 2,500 for¬
eign investors participated in the

the

from

S.

if it is to

in

"vagueness," "loose draftmanship"
ancj
"ambiguous phraseology"

host countries."
/

ost $150 million.
*n one respect,

Thus, much of
capital contributed
domestic standard,

our

ated

U.

is in

leSlslatl0n-

York

chandise.

(to other nations)
flat foreign laws
or
established
business practices which encour-

^oreien

to

Tn?re,!'
be previously outlined
injustices of the projected tax

New

inment of factories because they are
the vanguard which prepare the
^fs^ lu^^ bv forei^ market which creates
anH
incurrpMi^ tbe demand for our sort of merand
insurrection.

clear

nertainine

the

the

Wmenft Sh

conclusion, he said it "should

made

FXaT in?ome

of

specifi¬
made concessions. But

e.,

raising

About 70% of our direct foreign
investments went to the Western

unable

Humnhrev

guarantee

in

In

^be la^er hits some U. S. conalread; cerns with interests abroad even

M

outfits-

h

^xiSin^authoritv01wftM^the

frame

be

o£

Pr«i!w
tLt
thf Congress
«sen
that the

'

so

"pre-

,he

toreV

Finallv

the

remains

many others>' has
qUestioned
about
certain
inadequacies of the bill.
What

that the

tavnc
ho
ot
ioieign
taxes
be
broadened which may be credited
against
the
U.
S.
income
tax.

Georee

j,een

Specifically, the President askthat

lib-

a

foreign investment
part. Secretary of the

among

cession

ed

rev-

of

a

Treasury

in the

trade."

overall internal

an

eralization

by expandinvestments and

foreign

our

The Senate Finance Committee
has
for
some
time
deliberated
eaue

together with the curtailment of
U.

way

aTpes-

Code

earnings represent the bill's third

The

for its passage had also been
paved by the President in his

sources

tlv drafted

their

eased

to

enterprises.

exported

our

investors.

venture

£„et,v",atonl&
be Pr07ted
by at defcrease"h
cantly to the corporate
imposts
from 52% to

Pe¬

operate, collected about $1

billion in imposts from Americanowned

Obviously,
American
private
capital has to be completely liber¬

and

inefficiency.

S nre=Ctr f0reign,r 1"VfStTnt,®. by

cations,!.

Arabian

ments

to what avail?

so

inseparable that

it will be impossible in most

of the

have

ninsula

with

to

Representative
(Rep., N. Y.), a
was
agreed that

it

comply

can

ap-

Under

the

branch

and

of

Reed

How

overseas

unc'e/tal'n PAs'a "rule 'very 'few

States, according to
Richard
L.
Bowditch,
its

President.

the category of pro¬

subsidiary

or

limitation

measures.

American

average

United

the

of

last-mentioned

is clearly in

proposed in new tax measure is inadequate and
largely nugatory.

Dwight D.

sales

must

consumption in the U. S.
The

inhibiting American capital from going abroad, and

a

95%

foreign-pro¬
items intended for sale, use

duced
or

now

of

of

result

eign investments between 1940 and 1950 have doubled and
have reached a peak of $16 billion. Lists a number of

trends have

of gainful operation.

specific kind
Moreover, a
originate
from sdurces outside this country;
and only a maximum of 25% of
gross income can be earned as a

'

Chronicle...Thursday, May 13, 1954

: •

recently been passed
by Argentina, Chile, Colombia,
Egypt, Iran, Israel, Japan and
Turkey, according to the sum¬
mary.
While some nations have
lately restricted their precondi¬
tions, Colombia, Peru, Israel and

been derived from

Calling/ attention to pending legislation in Congress to liberalize
the tax laws so as to encourage private investment abroad,
Mr. Rundt points out American private capital invested in
foreign lands has to be freed from the double tax burden if
this is to be accomplished. Reveals U. S. direct private for¬

finds relief

i* ( t*

.♦

» KM

present draft form, will have to
comply with most inflexible and
absurd provisions.
At least 90%
of foreign income to be granted
the 14 point reduction must have

Oar Private Foreign Investments

factors

f

1946

by
and

the

following

various factors
can,

capital

are

listed

the

inhibiting Ameri¬

from

going

abroad.

Most

of them have been so la¬
beled by the National Association

of

Manufacturers,

the

National

earned

Foreign Trade Council and Gov¬

enterprises lo¬

ernment spokesmen.
Not neces¬
sarily in the order of their global
applicablity, they are: (1) world¬

incomes

were

derived

sales tn the U. S. market.

the countries where

our

from

In turn,

establish¬

wide

uncertainties

and

fear

of

ao.yaq>taxH<NIalrfynfg.nb.1,1

Volume 179'

As

Secretary

Foster

Dulles

armed

conflict; (2) internal politi¬
instability in some countries;

(3)

inflationary dangers and ad¬
conditions

economic

conference,

of

has

to

the

Hot Money in

force

abroad.

go

attracted.

to

"It

is

prises and publicly-supported de¬

By PAUL EINZIG

and

growing confidence in the jraiind sterling. Points oat
a sadden withdrawal of these
funds, may cause difficulties, and
ascribes large increase in Sterling Area gold reserve during
March to this inflow of 'W money."

in

almost

country

every

relatively

un¬

high
"• '

'

'

'

i

•

level

interest
and

Frank Fisk Joins

safety
expectation
of

of
the
Treasury
Humphrey
insisted
that the Export-Import Bank cut
its lending. And he suggests that

rates

were

DALLAS,

Texas

Frank

—

of

But

oil

they

vision.

apply

to

private

will

not

money

indefinitely at the
(foreign) government

banks."

The

.

used

are

assist

to

developed
the

public U. S.

more

nations,

will

less

be

impelled to pave the way for con¬
ditions likely to be palatable to
private American investors. Thus,

to

place the

will

where

or

about

have

which

their

and

thought

Frank

by proposals to
the

Fisk

an

Since the

effect
offer

afford

American

In

a

more

other

phere for

our

conducive

During
he

war

with

He has worked

ex¬

in Texas,

areas

Fisk's

Mr.
in

was

most

Cuba

recent

where

he

work

-exists

250

in

barrels

discovery well
first major

day

a

central

Cuba

production

the
ine

in
in

the

that

in

country.

offers

some

It

Public

insurance

the

the

of

vestments.

consist

barked

has

Perhaps

sistance

subject

in

are

their

homeground.
insists

ital

of

outside

on

mind
the

to

try

familiar

if

more

own

exert

private

Bank

by

Board

dollars

some

issues

$55,000,000

of

1.15%

consolidated

with-

sudden

to

There

Mr

.

,

mu

several

are

Butler

to

wishes

are

consolidated

2.10%

bring

notes

and

of

many

ment may

decide to widen the existing margin between the upper

limit

and

would

the

make

it

This

limit.

lower

possible for ster-

Manv

?y
ferre(i

of those who

wppk<3

have

trans-

tnose wno nave trans

havp

to London

not

recent

in

int-r^ted

hppn

why

reasons

maintain

H

f
.

fractional

the

in

h

ea

.

intprpcf

W

of-

differences

Their

arbitrage

in

ductions

in

the United States and

The

view

held that,

is

bank

the

Para^oxical as_ it may sound, a

country can jp afford to have a
whirh

plirrpnrv

eniovs

of

gree

®

are

by savings banks,

ipnl

fundamental

nnfi

under

the

will

from

£

.

fundamental

sale

would

rate

immediate

in

lowered

be

and that
sharp rise

future,

Gilbert Gardner With

this would

tn Government loans and in other

Doremus in New York

during the last two and one-half

secti0ns of the Stock Exchange.

Gilbert

SIT?,

fii
I

in

»
a

trend

cnntlS

of prices.
that

In

the

re^flt

wnnirt

Of
of

resumption

feared

?! r'ltr

mhw

about

thl rfsfne
rising

the

any

it is
increases

case

wages

; SIS
addition

If,

in

to this, domestic demand were to
be' inflated through, easier money,
British exporters might find themAn

ex-

5nm£«i'i'e
HpnJnd
domestic demand

the

goods might induce them,

therefore, to relax their eiiorts to
maintain

and

increase their

sales

abroad.

In

would

for

maturity

Loan

on

t

■

there

...

■!'

'

addition of

gh^t'termliabih^ier Foreign'"^!ances

ar£,

subject

j

q

to

withdrawal
h

d

.

at very sil0rt notlce> and tne incr<^e

Chicago,

Mr.

,

business publications.

the

for

worked

Chicago

the

T.

.

a

S.

,

.

-

,

,

draw

their

„

funds.
occur

"

If, and when,
there would be

bach,
Broad

.

anything
that a loss of gold, conceivably at the
discourage
saving. Even wrong moment when it is liable

Paul

mitted

Kramer

All of these shares having

members

of record only

NEW ISSUE

Standard Uranium

Corporation

1,430,000 Shares of Common Stock

Price: $1.25 per

Share

consolidated

Home

Upon completion of the financ¬

only opportunity of earnings
also pledges of greater secu¬

and

enterprise.

ing, outstanding consolidated note

obligations of the banks will total
$115,000,000.

•/

Gearhart & Otis, Inc.
74

Trinity Place, New York 6,
WHitehall 3-2900

N. Y.

be

ad¬

of the New York Stock

Exchange, on June 1.

been sold,

this advertisement appears as a matter

will

partnership in Auer¬
Pollak & Richardson, 30
Street, New York City,
to

the

stitutions.

He also
"Herald

Auerbach, Pollak Admit

weakness.
It is possible to visualize
number of causes that might

May 17, 1954

Federal

was

American" and "Sun Times,"

making additional credit
by

Gardner

in their size is a source of

doing

Banks to their member in¬

Chi¬

child Publications, and did free
lance publicity and trade publications reporting for a variety of

hh.„

",d

provide funds for re¬

series D-1954
on

former

osrxr

.«„

*

that should

avoid

Gardner,

entirel/misleading^mpressiom
IVect

Moreover, Mr. Butler is anxious
to

a

correspondent for the New York
"Journal of Commerce," the Fair-

handicapped in in-

competition.

in

......

,.1

the world markets.

result

It seems probable that this in- cago newspaper man, has joined
llow of "hot money" was largely the New York news department o£
responsible for the unexpectedly, Doremus & Company, 120 Broadjarg increase 0f the Sterling Area way, New York City, advertising
mrge increase 01 me aierimgArea and. public
, ,,
—
relations firm.

tobelranted^wUl

laws

of

position

easily become a source o£
dlfflculties-

(Par Value I $ per Share)
the

,

nosition

though much of the postwar
inflation
has
been
mopped up
even

companies, trustees and

fiduciaries

high de-

0f conf1(ience unless its tech-

notes,

Federal
legal

the

Banks and

a

currenFy w?.1Fn enloys a

ymterest arbitrage, ineir -,ustifies the confidence. Otherwise

?™d'S £ ?hTstoc£ S&fiS?

bank rate at its present

Gratifying as the evidence of
worldwide confidence in sterling
may appear to Britain, it is certainly not an unmixed blessing.

ling to rise above $2.80.
*

for rejoicing,

the joint and sev¬

are

Loan

available

but




even

tiring $104,000,000 of outstanding

r.ot

initiative

And

The issues were priced

obligations

notes

equitable conditions for our
foreign investments. Beyond this,
the
foreign
countries eager to
welcome
American
capital will
have to be more vocal, more lucid
and more convincing in their in¬
vitations. They will have to offer

of

r

effective

so

the
high level, They have based their operations
spite of recent bank rate re- iargeiy on the assumption that the

chequer,

Sept.

A-1955

Proceeds

about

rity, •' liberty

funds be-

£n^*cate the changes in overseas
holdings of sterling. Even that
w°uJd not he sufficient. Changes
those who feel that, with the ster-stocks of imported commodiling-dollar rate in the close vicin- *ies are an important factor. If an
ity of its upper limit of $2.80, it;grease of the gold reserve by
js risky to hold uncovered ster- ^.10 million coincides with a deUng, they are willing to take that F
F.
SU<5v c01?Jn° ^ rese^ve®
risk in the hope that the Govern|?y £20 million there is no cause

Chancellor of the Ex-

notes,

May 17, 1954 and due Jan.

other

our

influence

be

group

The

dated

insurance

..frontiers.
authorities may have to
beyond

not

operations.

of many,states.

venture

Our

May 6

on

dealers.

for investment

These demands will have to be

to

of

Banks

Loan

nationwide

a

E-1954

Home

freedom.

met

notes

series

eral

economic

want

of

The notes

But American cap¬
safety, equality in

investors

Loan

of

17, 1955.
at 100%.

competition and the certainty that
earned profits can be repatriated
at will.
In one sentence, Amer¬
ican

of foreign

co™es reversed,

15, 1954, and $60,000,000 of 1.30%

before, Amer¬
liquid funds and

frame

a

luck

the;/

for the

weeKs nave not Deen interested

for their

new

dated May 17, 1954 and due

a

the

made

securities

series

em¬

as never

have

icans

the inflow
mainte-

the

Everett Smith, fiscal
banks, with the as¬

through

scheme designed
to remove what only other gov¬
ernments can do aivay with.
upon

in

.

agent of the

Or, to put it plainer,
Government

Home

was

Home

enticing
because,
in
the
final
analysis, it attempts to make up
for
the
very
attitude of other
nations now obstructing free in¬
own

two

of

non-callable

Federal

amount

is, however, perhaps not overly

our

balodi

drawal

totaling $115,000,000 principal

foreign soil.

on

offering

of

issues

guarantees against the

risks entered into

the

share

to

want

growing prosperity of the country:1
as indicated by its increasing gold
reserve.
-Higher
wages
would

high level Of interest

a

not

m0ney

ances

nnnclnr,
3
pansion of

FHLB Notes Offered

there

for U. S. investors which

program

short-term
snuri
lenn

volume
volume of
ui

selves gravely

Insurance

Governmental

a

of

would

it

mm

atmos¬

indicated,

workers

balances without covering the ex-

gradual increase

a

recom¬

mended the location of the recent

Programs

previously

overseas,

But the authorities have

ternational

As

from

flow has not been acutely embar-

elsewhere.

private investments.

Governmental

de-

change risk by forward exchange

and New Mexico.

words,
unless we accommodate foreign
interests by facilitating their ex¬
ports to the U. S., it seems un¬
likely
that
some
nations
will
create

a

including the Gulf Coast; also
Oklahoma,
Arkansas,
Louisiana

rights as are
enjoyed within their territory by
same

firms.

was

he has been Vice-

tensively in the oil

resident

he

par-

additional at-

an

funds

in

the extent of the in-

to reckon with

cal programs in Ecuador, Brazil,
Uruguay and other South Ameri¬

countries.

of

now

rassing.

President of Exploration Surveys,
Inc. and had charge of geophysi¬

funds.
elabo¬

the

war

Up to

Calif ornia.

Commander

can

the

of

Barrow, Alaska.

climate

Slates

Lt.

as

and, in return, demand that such
nations

the

Prior to the

uum.

friendly nations tariff concessions

investors

of

the

without

been

that

favored

traction

grad¬

a

the U. S. Navy in charge of Naval
Reserve Program No. 4 at Point

rated

United

ticular, provides

is

served

private

has

Studies, Inc.
He

geophysicist
Egypt for
Socony
Vac-

requiring
they

power

of

loans

Subsurface

do

political

quotations

Einzig

of

where

own

attract

can

This

to

Dr. Paul

the

of

and

Mr.

in

they would have to bring

under

economic

■

countries

position

a

either

g e n e r

President of

war

it seems, any reduction of offi¬
cial U. S. investments would tend

capital in

Ex-

prices
al,

change
in

in

Government

instance,

countries

rise

a

Stock

also

University

under¬

for

such

of

gas

is

uate

moneys

the

It is likely to encourage wages
on * the
ground that

on

be

disposal of

and

Fisk

investors,

taxpayers'

anticipation

Company,
Fidelity Union Life Building, as
head of their recently established
evaluation di¬

American

speculative

Fisk

has joined Garrett and

who

as

mand s

A.1S ,.a p / ™at the monthly
Publication of changes in the gold
strong confi- rescrve should be allowed to predence in the position and prospects <?enU s
a one-sided and misof sterling. This confidence has a fading picture.
In order to aitwo-fold result. It induces many Jive at the true picture it would
people abroad to keep sterling be necessary for the Treasury to

the
con-

sterling.

"The American Government must

must

of

attraction

nance

to

prospects

Company

make

endeavor to obtain loans that

The

growing

•

Secretary
George
M.

countries

;

.

Garrett £

adequate returns.

to

the inherent strength of sterling.

shared in official circles.

of

rates,

fidence in the

comparative

clear

;

.

popular." ;

velopment projects of a competi¬
tive kind. (9) Above all, however,
the NAM lists the opportunities in
this country which afford Ameri¬

it

of

unduly favorable picture
conveyed by the, increase of the
gold reserve is in itself calculated
1 to produce results detrimental to

the greatest

men, "Officially-backed cheap bank
credits offered to resident enter¬

reasonable

degree

The

Einzig calliattention to the inflow of foreign short-term
funds to London, which he notes is due to high level of interest
rates

greatest

21

LONDON, Eng.-v-The inflow of though it has become fashionable cause a deterioration of the ballay said that "Free trade, one of foreign short-term funds to Lon- to say that interest rates are of ance of payments. This would
don
is becoming
a
blessings which gov¬
problem of secondary importance as an in- mean that Britain might lose her
ernment can confer on a
people, some importance. It is due to the citenfient to save, this view is not newly-acquired gold even before

sidies granted to native business¬

investors

London

Dr.

import controls, export limita¬
In this
connection, as also with
tions, discriminatory duties and
regard to our own trade barriers
protective customs curbs; (6) na¬ and the
instability • of the U. S.
tionalism as revealed in autarchic
tariff, the words of an eminent
experimentation; (7) trends to¬
last-century historian and states¬
ward nationalization and expro-*
man
come
again to mind, and
p r i a t i o n ;
(8)
discrimination
their implications may once more
against
American
investors
serve as a
warning. Lord Macauthrough foreign government sub¬

the

cause

(2109)

inconvenience.

Therefore

the decision rests with you."

as

can

1.4—■vU-4,'1-h*V»iLUiJi-l<1 d^j>iu,{ k|±

John

Caracas

cannot

one

be

State

told

private capital to

pre¬

vailing in others; (4) currency re¬
strictions; (5) trade barriers such

and

^^ hJ>-r-^'-ri-V-V^1 -Julfi, A,

Number 5324...The Commercial and Financial Chronicle

cal

verse

,i.^v

Crerie & Company
Electric Building, Houston,

Tex.

22

(2110)

The Commercial

Tax Reduction and

Balanced

a

is

purpose

points out

on

dollar deterioration.

menace

Calls for

and sounder progress in

As

the

continue

we

however,
the

less

in

the

and

reduce

to

desirable

or

government

unnecessary

ex¬

penditures, it will become possi¬
ble

to

turn

which

the

1

of

benefits

These

tainly include

purposes

desirable

most

their

people.

other

to

the

are

terms

relieving individual citizens of

their tax burdens.

time.

eliminate

public opinion which will resist demand for unwise, hasty, and
extravagant action in tax and budgetary matters and looks for
more

Eisenhower empha¬
recently, it is the Adminis¬

future,

enlightened and positive

an

expenditures.

President

this

only as far as justified
and expenditures, U. S. Budget Direc¬
of unbalanced budgets and their impact

revenues

tor

in

tration's conclusion that the budg¬
etary situation does not justify
large additional tax reductions at

make further reductions in taxes, but

by prospective

reductions

sized

Asserting the present Administration's determined
to

first—those

As

Director, Bureau of the Budget

,

activities

rapidly as those reductions are
justified by prospective revenues
and

R. HUGHES*

ROWLAND

20%;

ther reductions in taxes—but only
as

Budget—Twin Objectives
By

determined purpose to make fur¬

all

to

purposes

in

of

cer¬

of

The
on

Administration

took

office

platform which stressed that

a

reduced

government

reduced

taxes,

and

spending,
balanced

a

budget
not

were

only

nec¬

for the

essary

Nation's

wel¬

fare but could
be

achieved

last

spring,

therefore,

a

substan¬

very

tial share of
attention

our

Rowland

R.

has been di-

Hughes

that
on

rected

to

bringing the Federal budget under
control.

would

inherited

a

budget

staggering

The

problem

Federal

balanced
fiscal

budget had been
only three of the 20

in

ending

years

in

1952;

as

result, the national debt had in¬

a

creased

twelve-fold

ades and the

in

two

purchasing

dec¬

power

of

gin

in

for

further

of those

each

two

deficits

will appreciate, regain¬
control of the budget under

ing

these

conditions

difficult

task.

people

limited,

the

1954

budget, provided for

expenditures

exceeding by over
395 billion the estimated
revenues
of
the
same
five
years.
This
meant an enormous
CGD

goods

on

would have

ceipt.

overhang
order, w h i

to

be

paid for

However, at the

Congress

was

on

of
c h

re¬

authorizing this
ex¬

pirations

the

law

written

which

would

into

lower

govern¬

ment income in

peak expenditure
years by up to $8 billion
annually.

Finally, legislation enacted since
1933

had

provided

for

large

a

number of fixed
charges against
the government for domestic
pur¬

such

farm price
supports,
veterans' benefits, and
grants to
State and local governments.
The
poses,

as

effect of this costly
matic
expenditure
to

was

make about

trap of auto¬
requirements
a

fifth of the

budget subject to only
ited

control

in

any

lim¬

very

one

and

year,

also to lead to situations in
which

unexpected

demands

under

where.

its

substantially un¬
most
existing and

merit.

have

de¬

some

There

to maintain

defense,
effects

the

other

are

istence

disturbing
of action

economy

too

abrupt, and the ex¬
large areas of human

of

welfare which have been
into

woven

as

adequate

an

possible

the

on

which is

government expendi¬

to

as

inter¬

so

be

continually de¬
them. It is obvious,

upon

that

cannot

we

permit

The

Legacy

of

Previous

Years

Reducing this legacy to simple
terms, Mr. Joseph M. Dodge, the
former

Director of

the

Bureau

the

Budget, has likened the
ernment's situation, when the
Administration took
office,
status

of

sistently
means;

lived
had

well

five

new

to the

family that had

a

is

what

should

be carried

basis.

When

and

aged
and

the

been

and

past

two

of

its
real

adversity (related to World War
II); had only three times in 20
♦An
the

Finance

nual

by

Director

Luncheon

of

the

Hughes
42nd

Convention of the Chamber

merce

D.

Address

of

the

United

of

at

An¬

Com¬

States, Washington,

C., April 27, 1954.




Administration

inheritance

and

has

cohcerned
ceeded
costs

will

not

are

issue

an

are

issue savings will multi¬

an

as

particular

a

result of

a

government

to

taxes

on

levied

be done

group

As

we

persuading the

finance
all

it

the

find

we

into

move

that

or

from

problem
is right¬

everyone

eously for government

economy—
But it is too often

in the abstract.
assumed

that economy should al¬

begin

ways

somewhere

not affect the

interest
of

else

projects of

a

and

and will remain

have

been

made

an

thp first time in

Fiscal year

many
issue. %

an

1953—the

tration

when

the

billion

dollars

course,

should

be

should

be

should

come

reduced, the budget
balanced, and taxes
down—but neverthe¬

less proposals for government

spending too many times are
tagged as "having merit" or
"being in the public interest."
Denial

or

retrenchment

always

brings charges of "false economy"
or
something worse.
Demand
As the

there

for

Tax

ministration,
ductions

side of the coin,

reverse

the

continuing

demand

greater and greater tax re¬
ductions.
The Administration is
anxious
fast

to have

that

as

can

taxes

reduced

as

be done—without

building up inflationary deficits
adding still further to the

and

fearsome

turning
is

our

over

related

rates

to

of

to

in

debt

our

conviction,

reductions
ment

legacy

tax

rates

reductions
and

are

children.

however,

expenditures.
govern

we

must

in

It

that
be

govern¬

Expenditure

determine

tax

requirements. Expenditures which
not paid for by tax revenues
can, in the end, be paid for
only
are

by

a

far

more

insidious

taxation—by inflation.

It

type
is

of
our

same

this

year

estimated

now

as

for

about $800 million
less than similar expenditures in
1953.
Unless basic legislation is
rescinded, there are few oppor¬
tunities

and

for further

Budget
category

"other

of

activities"
about

savings here.

expenditures
have

25%

the

over

for

the

government

been

reduced

last two

fis¬

This category includes
numerous
day-to-day opera¬

years.

tions

the

of

government, such

enforcement

law

tion,

the

and

as

administra¬

service, tax col¬
lection, and the cost of direct civil
public works.
postal

Expenditures

for

major

na¬

tional

security program—for the
military functions of the Depart¬

by

ex¬

over

to

these

re¬

out

in

unexpected

The fiscal year 1954 budget had

the

Congress
Administration

the few short months prior to the

opening of
July 1

the

last

ited.

1954

fiscal

year

necessarily lim¬

were

However, current figures in¬
that

for

requests

new

reduced

were

$12% billion dollars and expendi¬
about $7 billion below the

totals estimated for the

by the

tion.

previous

Furthermore,

the

to

$10 billion
estimated by

ministration,
that

the

it is

fiscal

will be held to

1954 bud¬

Administra¬

contrasted
deficit for the
as

the
now

Ad¬

past

estimated

1954

year

deficit

$3%

billion, even
though budget receipts will be
less than estimated when the bud¬
get was prepared a year ago.
Budget for the Fiscal
The

budget for fiscal

Jan. 21 and is the first /'Eisen¬

hower

Budget." It proposes ex¬
penditures of $651/2 billion, re¬
ceipts of approximately $62 M> bil¬
lion, and a budgetary deficit of a
little less than $3 billion. In sum¬
mary, this means that the request
to Congress for spending author¬
ity has been reduced $15% billion
estimated

have

billion

been

since

took office.

this is
in

a

annual

expendi¬

reduced

$12%
this* Administration

Put

in

simpler terms,

reduction of almost 20%

proposed

budget

expenditures

—from $486 for each man, woman
and child in the nation down to

$404,
To

a

reduction of $82 per capita.

understand

the

budget

at

all, it has to be greatly simplified;
perhaps the easiest way of de¬

the

upon

national

our

security programs. Our endeavor
place our defense establish¬

ment

be

on

basis

a

maintained

course; the Congress, defi- J
nitely; but the public—the citizen
—is equally important. How much
can
be done by the Administra¬
tion and the Congress is primarily
dependent upon the support of
public opinion.

tion, of

The

Administration

vinced

that

sound

budget,

the

the valid and
of

and

a

one

security and
functions

necessary

last

analysis, however, our
budgetary policies must be backed
by an enlightened and positive
public opinion, which recognizes
the need for
resisting demands
for unwise, hasty and extravagant
action.

To the extent that you, as

citizens,

which

on

for

it

major

enues,

and

ably in
policies.

economic

strength

truly
one—and neither can sensibly be
purchased at the price of destroy¬
ing the other."
The question is
kind

be

can

of

are

defense

a

present

Eisenhower

He warned
be

reductions

in

element

of

current

major

expenditures in
the largest single

reduction

year's

level

from

the

of

expendi¬
tures. However, while the total is
down

and

some

the

expenditures
in

for

this

category
will be reduced, others will be in¬
programs

The

creased.

Atomic

Energy

Commission and the mutual mili¬

Federal

two

Expenditures
ment

of

the

in

category
Defense

principal

the

—

Depart¬

itself—will

the

expenditure

expenditures

be

reductions

posed

expenditure

fected

since

year

than in

War

II.

We

continental
year

in

any year

our

will

since World

spend

more

on

defense

than

history.

Other reduc¬

in

comparable period in
billion

this

proach.

They

part from

ning

and

security

program.

in

based

assumed

danger,

resulted

our

national

Our

military

previous

years

several

on

in

concept for plan¬

financing

planning
been

have

a new

had

successive

fixed dates of maximum

which

extended

were

time

ment

and personnel plans focused

to

time

with

each

such

aimed

date.

instead

This
at

budget

providing

strong military posture which
an

maintained
extended

successfully

period

of

Expenditure

peace.

also

resulted

is
a

can

over

uneasy

reductions
from

taking

obligations
in

to

vance

domestic

As the President emphasized in

budget
message,
necessity—rather than

ability—as

the

penditures,
reduce

we

the

more

the

as

be

largest

the

national

individual

over

possible

income

ex¬

to

national

citizens

is

to

the

years

share
left

what

of

with

make

their

countless decisions

own

as

to

they will spend, what ,they
they will save

will buy, and what

invest..

and

play

vital

a

economic
But

we

Government
role

in

must

maintaining

growth and stability.

believe

that

our

develop¬

ment, since the early days of the

venture.

procurement;

stimulated/the

and from the termi¬

our

continue

of

made

to

over

for

will

using
desir¬

and sounder prog¬

progress
will

ress

a

un¬

by
mere

income which is spent by the gov¬
ernment.
We are convinced that

of

relatively
slightly

test

share

by

num¬

ad¬

to

well-being

his

degree
from
improved
management and better balanced

growing

increases

and to foster economic growth.

ber of nuclear weapons; to an im¬

effective

certain

expenditures

our

portant

our

most

have. been

we

propose

Federal

curity programs require approxi¬
mately 70%
of all government

.the

Fed¬

international

our

and

application of

account

pos¬

by these reductions in

programs; and (3) all other gov¬
ernment programs.
National se¬

into

taxes

year—made

in American
history.
We
have, nevertheless, made appro¬
priate provision for our national

procure¬

to achieve maximum readiness by

in

year

our

from

history.

our

reduction

eral spending—will be the largest
single tax reduction in any one

any

tions in defense expenditures have
not resulted from a meat-ax
ap¬

day

is
the greatest reduction in proposed
government expenditures in any

security and for

air power next

ef¬

programs

inauguration

able

more on our

ex¬

mounting taxes.
$12 billion reduction in pro¬

The

the Joint Chiefs of Staff.

We will

are

Despite these inherent difficul¬
ties, we have not only stemmed

selective, reflecting a dynamic
long-range plan recommended by

are

spend

by

are

but have turned the tide of colos¬
sal spending and

sible

programs.

security

not

heavy
requirements.
are

Government

anticipated

the

this would

tremely complex.

since

of

chart

relatively

The $7

initiation

to

policy which

still

security

Substantial

tary program, for example, in the
budget recommenda¬
tions, will be at the highest levels

President's
the

seek

non-discretionary.
The far-reaching activities of the

security

represent

that

There

easy.

law

Proposed

a

Con¬

as
rapidly as our national secu¬
rity and well being will permit.

maintained, if necessary, over
relatively long period of time.

1955

office

the

would reduce the planned deficits
and bring the budget into balance

national

national

would

fiscal and economic

circumstances,
will
be
economically bearable, dnd can be
a

took

he promised

ago,

gress and the people that his Ad¬
a

structure

reasonably effective under

rev¬

Now, in summary, when Presi¬

can

ministration

our

maintain

help immeasur¬
supporting sound fiscal

President Eisenhower has pointed
out:
"Our military strength and

an

to

will

you

year

have

the

con¬

government.
In

period of time without endanger¬
ing
our
economic
health.
As

relatively

controllable programs

is

budget is

sistent with national

dent

be

expenditures;

1955

which
meets the Administration's pledges,
of efficiency and economy—con¬

indefinite

scribing it is to discuss the three
principal categories of expendi¬
tures:
(1) national security; (2)
uncontrollable

depend

is to

again
1955

—which begins this coming July 1
—was
submitted to the Congress
on

analyze

you

less in total than in 1954, but once

1955

year

way

ap¬

about

tures

get

any

what

to

dis¬

three

are

penditures

ports.

presented

which requires

one

There

teamwork.

will

expenditure increases, notably a
$1.1 billion increase in mandatory
expenditures for farm price sup¬

been

budget task is

tinct parties to it: the Administra¬

the cost of

cancelled

results

A point I wish strongly to em¬
phasize is that this fiscal and

needs and

contrasted

although

were

reported

tures

is

the

Requires Teamwork

primarily

the estimates of the previous Ad¬

and

Reductions

In fiscal year 1955 about $14

billion will be required to support
these mandatory programs, about

life.

Task

Adminis¬

effected

as

economic

made

defense

In the last

penditure reductions of well
a

period which,

a

sustained

see

can

into

can assist us in develop¬
ing that kind of support for doing

new

Administration

atmosphere

crisis

the things necessary to reduce ex¬

five months of the fiscal year the
new

hope rapidly to

we

the

from

budget, the final status in dollars

months under the budget en¬
by the previous Adminis¬

tration assumed office.

these,

as

the

acted

special

locality. It is admitted,
that expenditures

or

bene¬

that

years

year

people.

the

matching

as

veterans'

year end¬
ing June 30, 1953—was in its last

for

propriations

dis¬

bud¬

few

Costs

decades
have

such

states,

to

,

annual

ment of Defense, the mutual mili¬
tary program, atomic energy, and
stockpiling of strategic materials
—comprise the remainder of the
budget.
The inescapable fact is

ply.
issue

dicate

the

can

like.

expenses

multiply, and when costs

made

the

process,

grants

the

pro¬

ings

move

fits, farm price supports, and the

basic

have

20% category
expenditures which

outside

getary

its

We

As the result of such sav¬

compatible with a continuing ap¬
proach to a normal prosperous

how

date.

to

middle

in

hostilities

active

of

;•

Korea.

factors

fiscal

the principle that when

on

nation

by law, relatively nondiscretionary and depend largely on

its

has
been
put
into
practice is illustrated by the three
budgets with which is has been

the

government

10%.

are,

of

philbsophy

other

about

of past years

cal

challenge

encour¬

which

behind

up

of how much

benefit

what

on

habits

pressures

built

covery

area

by the Fed¬

on

the

the

over

activities

get to that point

we

encounter

we

to

services

Government

con¬

beyond

years

of

gov¬

the

the

luxury of perfection before the new
or provision for all
contingencies. took office; in consequence, the
The difficult question,
therefore/ revisions which could be made in

for

1

How
met

ourselves the

mandatory
cancel

and

important considerations, such

these

expenditures could
hard-won savings else¬

and

of the world,

envy

time

same

backlog of expenditures, tax
were

wealth

are

projects

of

extremely

an

nation

our

and

proposed

is

The

the

are

desires

our

eral

in

of

resources

years.

Appropriations
authorized
by
Congress from fiscal year 1950
through 1953, plus those requested

of
in

As you

however,

called

aware

reduction

was

income; and had no immediate
plans for changing its habits.

pendent

fice.

limit

its

The budgets for the fiscal
years
1953 and 1954, which had
been
transmitted to the Congress before
of¬

fixed

a

borrowings;
impending 10%

one-half.

Administration took

to be paid for
normally had about

its

tures

new

have

before reaching

the dollar had declined
by nearly

the

times

living expenses in
the bank; had relatively little mar¬

the need

one.

four

over

month's

gree

The
was

debt

a

delivery;

one

an

secu¬

more

yearly income;
owed
more
than a year's income on COD's

on

rity and well
being. Since

with

its

with

national

itself

balancing the budget and fur¬
ther reducing tax rates.

income than it had spent; had ac¬

quired

coordin ate

improved

provided

years

Take

twin objectives

our

all

and

13, 1954

Financial Chronicle... Thursday, May

and

Republic, has

been

fact

left

that

our

we

national

based
a

on

great

the

share

income to be used

provident people with
Their

actions

American

a

will
have

genius

Volume

for

179

Number 5324 ...The Commercial and

creative

multiplied

initiative

and

efficiency and

on

Institutional

Savings Banks and Common Stocks
By

gov¬

Mr.

expenditures, reduced
taxes, and a reduced deficit. The

to

reduced

to

request 13 Congress for
spending authority promises
further that,
barring unforeseen
circumstances, the budgets which
new

be

ture

will

recommended

be

in

directed

the

fu¬

toward

the

objectives.

same

We

firmly

believe,

therefore,

that this budget represents
of

which

government

a

plan

will

not

only protect our way of life but
will also strengthen our economic
base
all

and

enhance

the

welfare

of

people.

our

Casazza, commenting

it

years,

only two years ago
that tbe Legislature granted them
authority
to

buy

common

stocks.

ings

ct

Keystone

Portland

Ce¬

$15.371/2 per share.
The net proceeds from the sale

will

be

received

stockholders

by

and

the

selling

part thereof
will be received by the company.
Shields &
headed

a

vestment

Co.

no

earlier

this year

group of

nine other in¬

banking

firms

ing

assets

cover

ing

purchased

60%

interest

in

to

expenses,

On April 21,

of

545,736

of

$3 par value
the stock
issued
been split 4 for 1.
In

1953

$1.48

of

common

1952

$1.37

or

com¬

income

net

of

'In

share.

per

both years, per share earnings are

adjusted for the 4 for 1 split. Sales
in
1953
were
$6,491,524 against
$5,945,851 in 1952.
For the two

months ended Feb.

28, 1954 the company had sales of
$553,000 and net income of $74,000
compared
and

net

with

unaudited

income

sales

of

$654,000
$71,000 respectively for the
responding period in 1953.

and
cor¬

primarily engaged in the

facture

and

ment.

The

sale

of

manu¬

Portland

ce¬

cement

company's
manufacturing plant

and
located near Bethlehem, Pa.

quarry
are

offering

Stocks

stocks

By

is

scheduled

for

Fri¬

Elkridge Club in Baltimore.

Festivities will begin at 1:00 p.m.
with
the Annual
Golf
Tourna¬

tennis

and

outside

an

bar.

The

popular
"Stock
Exchange"
will take place at 4:30 .p.m., and
the

7:30

evening's

p.m.

top

activities.

from New York,

Washington

will

2.75%,

high-grade

Guests

expected

to

at¬

tend.

around

But

yield

comparisons do not
,tell
the
whole
s.ory.
Savings
banks were made subject to the
Federal

Wallace

Lanahan,

Jr.,

Arrangements

members

are:

and

Committee

E. Clinton Bamber¬

Baumgartner & Downing; C.

Prevost

Boyce,

Boyce;
Miller

Stein

Bros.

&

equal

serves

deposits must
income

&

Co.; Jack

A.

Sons;
Bros.

William

Alex. Brown &

O.

S.

Warner,

Boyce; S. Bonsai

&

Stein

White,

Sons; and William

Schach, Merrill Lynch, Pierce,

Fenner & Beane.




ap¬

Because

be

incurred

dividends

on

and

However, dividend

heavy

by

pur¬

portfolio of stocks, even

a

issues, around the top
when the favorable

dividual

equity investment by savings

dividends

utility

certain

public

stocks.

This

preferred
that

means

income
to

from

the

tax

only

rate

7.8%

received

present
of

corporate

52%

total

on

amounts

dividends

corporations
irom
whereas the 52% tax on
by

interest,

from

as

Government

United

bonds

and

half.
that

Therefore,
have

income

to

tax

net

much

a

better

yield from stocks than from tax¬
able

interest
And

amount.

ings

banks

their net

the

more

able

are

reserves

of

like

that

sav¬

to

earnings, the

surplus and
up

income

increase

their,

more

can

be built

to absorb future losses and to

stocks

return

is

from

common

relatively

tempting,
these investments involve greater
risk

of

possible

loss

stock,

common

a

than

As

a

do

holder

savings bank

right

to

principal nor the
fixed rate of return

as

to

a

that it has

mortgagee

as

holder.

Stockholders

risks

wide

of

or

bond¬

incur

market

the

price

factors

and

ignored,

savings banks are reduc¬
the timing hazard through
of

use

aging"

the

"dollar

principle.

cost

This

aver¬

Fund,

stocks for

mon

five

say

to

period of years,
years in order to
a

10

cycles.

one

two stock

or

Under

this

ment

for

Minimizing

banks

techniques to
ards

Dangers

using three
minimize the haz¬

inherent

are

in

common

First,
careful

plan

a

cost of the

chased

will

be

that

the

equities

*An

risk

is

address*; by
of
the

Conference
Business

reduced
and

Mr.

through

purchase of
Casazza,

Graduate

at

School

lower

years

This is

because

so

purchased

for

than

ever,

of

when

dollars

than

prices

when; they

spreading

the

that

low

are

high.

are

time

of

are

By

acquiring

stocks,

common

loading

the danger
of
with stocks at prices

up

suosequent events prove

too

nigh is lessened. Through dollar
averaging savings banks are using
a simple, convenient and
practical

be

invested
A

third

banks

setting

it is

way

in

aside

each

savings

out

year

1%

stocks

to

reserve

which

risk
investments is

income

common

a

reached.

minimizing

stock

dividend
of

in

are

common

of

the

future

by

of
cost

purchased

absorb

in

as

losses

cushion

or

depreciation.
Any
gains
realized
are
also

capital
added

the

to

10%

Government

securities

(5)

combined

ties.

investment

out

invest in

stocks

common

when

purchase its shares.

Stocks

purchased

selected

are

Savings Banks Trust Company
from a list of 190

under contract)

issues

tions

Deletions

Fund.

made1 to

are

List

by the directors

approved

the

of

this

Approved

recommendation

on

investment

of

the

and'approval

adviser

of the directors of the Fund. Sales

securities

changes

or

in

policy recommended
adviser

also

The

Fund

port¬

by the
be

must

issues

requirements
for

savings

of

The

Fund

varies

the

Investors

time

tion

appears

with

to

than

in

ers

market

for

future

considered very important, but

in

of

and

both

of

terms

current

and

future

The average yield on cost

stocks

in

equity

community

what the

doing

iare

capital

in

to

equity

encourage

corporations,

and

savings

field

the

capital

industry

held

by

the

Fund

is

the

savings

structures

J. B.
J.

equity investment in

thrde

by

of

careful

selection

ways:

common

stocks

purchased; by spreading
timing of purchases; and by
means of an equity reserve.

Beaver

Street,

Joseph
New

&

Co.,

The

Legislature

ment

of

was

City,,

members of the New York

Stock

Exchange,

will

admit

Astolfo

C.

Ottolenghi to partnership

on

1.

This advertisement is neither an offer to sell nor a solicitation to
buy any
of these securities. The offering is made only by the Offering Brochure.
I.
1
NEW1 ISSUE"

stocks

common

ings bank to

the

its

s u

smaller.

r

p

This

1

by

each

149,500 Shares

means

PAWNEE OIL & GAS COMPANY

sav¬

equal to
one-third

or

whichever

u s,

of

purchase

amount

an

only 3% of its assets
of

aware

stock invest¬

common

restricted

and

that

for

is

i

all

Common Stock
(Pur Value $1

per

Share)

savings banks the total authorized
limit

of

stocks

investment

is

around

the

time.

present

total

in

common

$425,000,000

at

Price $2 per

banks to date have

savings

of

utilized about

Cnfies of the Offering Brochure
be obtained

10%.
Because
in

mon

savings banks

their

are

investments

stocks to

a

in

each

lim¬

maximum of only

savings

bank

organization of

common

stock

S. D. Fuller & Co.
39

Broadway, New York 6, N. Y.

Teletype jVY 1-4777

to

set

May 11, 1954.

Vermilye Brothers
30 Broad St., New York 4, 'N. Y.
Teletype V Y 14194

up

specialists for

investment.

may

f^oin the Underwriters.

com¬

3% of assets, it is not economical

an

share

Of this poten¬

purchases

.'1

60

York

the

the risks of

of

Joseph Partner

Bernard

stocks

common

on

by reducing the inherent risks in

by

resulting

private corporate enterprise.

June

currently 5.27%.

yields available

they

financing

savings banks, therefore,
realizing the relatively higher

are

of

By providing

freer flow of institutional

strengthens

of

is

return.

approxi¬

private enterprise system
stake

equity investments.

paying

growth

dividends. Yield

earnings

of

amount

purchase except when

prices necessitate

much

are

out

$8,000,000.

a

banks

ac¬

characteristics

has

Inc.

old, already 65
of the 130 in

year

The entire financial

max¬

Stocks

a

the

mately

banks

when such

Fund,

the State have become sharehold¬

proportion

warranted.

growth

favored for

too

time

Mutual

savings banks

non-cyclical and cyclical stocks

from

that

common

been set up. Although the Fund is

minimum risk.

and

income

in

requires, and in the inter¬
economy
of cost to each
savings
bank,
the
Institutional'

the

meet

specialized

experience

investment

of

est

most

adequate diversification,

imum

of

to

the

stocks

dicates that the selection of stocks
aims

4

investing in

are

and

successful

have

Fund

of

knowledge

and the

the

Fund with¬

income.

Because

popular stocks held by the coun¬
try's investment trusts. This in¬
for

aver¬

buy and

can

in the

Savings banks

less

the 50

among

conveni¬

cost

"loading" charge.

a

dividend

presently

are

a

dollar

Mutual Fund, Inc. to obtain the
relatively higher return from
equities.
The
risk
involved
is
being minimized through careful
selection, diversified timing and
by setting up a reserve out of

holds 67
different stocks
representing 18
basic
industries.
Of these
only
20

the

common
stocks
directly and
through the Institutional Investors

addi¬

or

of

Conclusions
.

expect

by the investment adviser (which
is

shares

A

ment <

to

for

Savings banks

redeem

opportuni¬

banks intend and

size

aging by savings banks.

States

provide funds for meeting re¬
demptions, or to take advantage
special

vehicle

ent

to

of

the

the expense ratio
invested should de¬

(4) The Fund offers

How¬

cash and short-term United

As

cline.

be held in

may

to

were

organization to do

grows,

dollar

per

pol¬

job.

good

Fund

one

any

required if the bank

a

over

This

reserve.

The

for

Administration, New York Uni¬
versity, New York City, March 20, 1954.

stocks.

common

to

up

spread

are

fraction of what would

a

set up its own

the

The

approved by the director^.

number

same

be

is to keep fully

tneir

shares

more

the

bank to

reg¬

to

investment

price during the period of
in which the plan operates.

a

of

subject

pur¬

average

ited

selection

and

expenses

participating
banks.
brings down the cost to

open-end

an

Commission.

invested in

folio

stock

investments.

is

Inc.

with

Exchange

of

average

industries.

and

all

management

icy of the Fund

the

result

issues

A

cause

banks.

Company Act of 1940,

istered

savings bank buys both in strong
and
in weak markets, and thus
averages
out
the
timing
risk.
Moreover, dollar averaging gives
arithmetical

(2)

an

type of
fund organized under the Invest¬

for' they

calls

investment at regular inter¬
vals, say each month or each
quarter, of equal sums in com¬

tial,
Savings

of

Institutional Investors Mu¬

diversified

the

de¬

clines and reduction of dividends.

savings

shares

savings

has neither the senior contractual

position

in

ing

margin future growth of deposits.
While the

of

The
tual

invest

many

savings banks
the corporate

pay

to

substantially full invest¬
position in common stocks
by the Fund is necessary because

over-discounted

are

unfavorable

banks:

tate

regulations of the Securities and

by corporations, means of accumulating a common
(including savings banks) is given stock
portfolio
until
the
legal
tax
credit
of
85%, excepting maximum total amount that may

Methods

Stephens, Alex. Brown

&

of

received

Kolscher,

Sener, John C. Legg & Co.; ClinP.

of its

12%

income tax

pay

after

franchise tax.

income

least

at

Carter Hoffman, Mead,

George G. Shriver & Co.; Joseph
»ton

in

1952.
Any savings bank whose
surplus, undivided profits and re¬

of

of

Stein Bros. & Boyce, is Chairman

ger,

income tax

corporate

mortgages and bonds.

W.

of

corporate

3%, and insured
and guaranteed mortgages about
414% net after servicing char_.es
and acquisition costs.

off

Philadelphia and

are

of com¬
yields around
United States

today

contrast,

Government bonds yield less than

net

be.

boom,

price

Income

mortgages,
cuts
the
net.
yield after the tax by more than

day, June 4, 1954 and will be held

at

More

from

Outing June 4th

dinner

class of invest¬

relatively attrac¬

a

Give

mon

States

BALTIMORE, Md. —The An¬
nual Outing of the Bond Club of
Baltimore

to

include at least

5%.

taxable

ment,

com¬

tive return.

stocks,

Baltimore Bond Club

at the

buy

to

provides savings

new

a

banks

stocks

savings

to

(1)
Continuous
professional
supervision by specialists in in¬

a

The company has been in busi¬
ness for more than
25 years and
is

right

now

banks with
ments

bonds

share,

common

with

$748,406

having

the company had net
$808,394, equivalent to

per

pared

The

stocks

dividends

and

risk

best of

the

for the protection of de¬

reserves

mon

Alfred J. Casazza

up

positors.

sat¬

not

may

a

the

and

the

1954 the sole capi¬

consisted

stock,

income

build

indicate

Savings

common

by

factors

satlsfac-

surplus

company.

shares

the

cf

A representative group

talization

hold

chasing

operat¬

pay

which

future.

the

losses

to

of

earnings

into

The Fund offers the following

advantages

recognition of the special
problems involved and to facili¬

ments

is
being
re¬
concentrating pur¬
chases at any one time, no mat¬
ter how attractive the
prices may

on

stock

Co. at

isfactory

earn¬

t o r y interest
dividends, and

ment

industries that

appear

11 offered publicly 330,296
shares of $3 par value common

May

those
basic

Secondly,

overall
r n

purpose.

quality
stocks,
favoring
of
leading companies in

duced

seeking

their

a
group
which on

high

proximately 200 companies.

banks

u

two years ago

stock investments

common

now

Sav¬

continu¬

the

headed

bankers

has

was

Keystone Portland
Co.

Slate

had mutual savings banks dor 135

r

&

y

;,

23

high degree of diversi¬
fication is provided each partic¬
investment company
owned ex-;
ipating bank no matter how large
clusively by
mutual
savings or small because of the
pooling
banks. The Institutional Investors
together of the funds of many
Mutual Fund, Inc. has been or¬
banks.
ganized
and
its operations are
(3) Economy of operation be¬
geared to the particular require¬

of the Institutional Investors

Fund, Inc., created for this

Although New York

al: y

investment

privilege granted

the organization

Mutual

to improve

Shields

on

for minimizing dangers inherent in

Shields Group Offers

of

Mutual

Inc.

In

them

New York savings banks to invest in common stocks so as
obtain a higher return on investments, discusses methods

and describes

are

Cement Common Stirs.

CASAZZA*

J.

Investors

Fund,

banks, the Legislature authorized

ernment

will

ALFRED

Vice-President, Savings Banks Trust Company, New York City

econ¬

in, government, reduced

omy

(2111)

thus

productivity.
budget proposes that

our

/ The new
such progressive economic growth '
will
be
fostered
by continuing

emphasis

Financial Chronicle

24

(2112)

Thursday, May 13, 1954

The Commercial and Firuincial Chronicle...
I

Continued

Public

from

ojrfr nuclear power costs, it is evi¬

13

page

dent that nuclear power may

be competitive with

Utility Securities

Industrial

Mountain States Power Company
has been approved by stockhold¬
and

ers

sions.

by several state commis¬

The consent of the Federal

Power

Commission

is

also

re¬

there

has

quired,

but

been

no

opposition to the merger

and

barring

it

thus

be

may

few

far

weeks.

within

President

a

Paul

B.

Company

recently addressed the
New
York
Society of Security
Analysts and presented a brochure
containing pro forma figures for
the merged company.
The

merged

will

retain

Power

&

company

the

name

Light

$155 million,

The

areas

Montana

Wyoming.

and

Wyoming property, the east¬
part of which is nearly

ernmost

1,000

miles

from

the

is

Coast,

isolated from the main properties,
but is considered to have excel¬
lent

possibilities.

Regarding
situation

the

indicated that the Colum¬

McKee

probably provide
a
total hydro-electric capacity of
some 20
million KW—equivalent
to

roughly

U.

S.

lion

KW

of present
four mil¬

one-fifth

capacity.
have

About

installed

been

now

cies

will

three

and

utilities.

million

Federal

by private

projects

it is estimated

and

forma

still another three million by 1965.
Five companies—Pacific Power

earnings

stock

for

1953

deducting
Federal

15

at

taxes

interest

estimated

are

$2.08

ferred

for

deferred;
on

con¬

credit supplied 45 cents
Combined earnings for

share.

1954

after

provision

cents

amount,

struction

common

$1.65,

were

income

this

the

on

before
taxes

celerated

by Mr. McKee

for de¬

provision

resulting

from

amortization

and

ac¬

$1.42

is

that

expected

dividend

rate

the

Pacific

on

$1.20

P.

L.

&

will be continued after the merger
and that the two companies will

adjust their current payments
to

the

date

when

becomes

effective.

share

Mountain

of

Company

share

the

up

merger

Since

each

State

stock

common

nine-tenths

Power
receives

of stock

in the

merged company (Pacific P. & L.
stock

has

the

effect
rate

of

this

increasing the

Mountain States

on

During

the

last

accelerated

riod

four

of

years

amortization

the

on

pe¬

stock of

common

the merged company will be about

35-40%

"tax-free"

(subject
of
capital gains taxes when
the stock is sold).
to

course

Capitalization

the

of

merged

cor—>any is approximately as fol¬
lows:

General

Washington
cently

formed
company,

west Power

future

bonds

a

Serial

Percentage

$82

N**les

Prefers

Stock

Co"-.^r- ~tk. Equity
(3,329,000 shs.).__

54%

13

9

13

8

Book value of the

sheet

the

ticipate
the

forma

new

revenues

been

(reference

to

the

as

in the

made

brochure):
Share

$1.65

*35.2

1.62

—

1950

—

1949
'Adlusted
customers'

for

Earnings

—*$37.0

1951

32.6

1.48

30.3

1.58

28.1

1.13

temporary

figures prepared

ing firm in
merger

by

surcharge

and
an

on

engineer¬
with

the

indicated

a

rather favorable

It

appears

justment of

FPC

sites

expected

530 000

have been
the

on

KW

to

Clear¬

These sites

develop

about

KW. with perhaps 250.000
downstream

more

River.

There

plans under

long-term trend.
unlikely that any ad¬
rates will be

required

the next year or so.
The merged company will

over




serve

total
of

Canada

the

national

should not be

with

Mexico.

would

and

be

to

the

electric

to

load

utilities

dispose of this

the

service

gas

for house

except

the

glad

business

average)

serious competitor

a

electricitv

companies

gas

factor

is

bad

burdensome.

and

Natural

should helo industrial devel¬

which
the

in

turn

electric

about

power

five

About

nuclear

of

capacity would be in op1975, generating about

billion

kilowatt

share

of

U.

electrical

S.

kilowatts

in

eration

35

million

nuclear

hours.

The

in

total

power

output would

be

about 2%.

should

utilities.

try will in
10%, 2%, or

1975

be

producing
of

some other share

the U. S. electrical output. Never-

theless, these illustrative estimates
indicate

the

achieved

if

pressed

scale that might be
development is

and

Either

in

agers

New

will

syndicate

York

investment

celebrate

anniversary of the club
18

with

man¬

fifth

the

represents

capacity: in

sizable

a

one

case

140

reactors, in the other case 33 re150,000 kilowatts average capacity would be in operaactors, of

tion.

1!H5 would

the

of

first

the end only

be

decade

on

June

J.
G.

Naylon, Harriman
Ripley
&
Co.
Incorporated
is
President of the "Syndicats" and
Claire Happener,
Goldman, Sachs
& Co., Secretary-Treasurer.

Forms First Chelsea Corp.
First
been

Chelsea

formed

Corporation

with

offices

at

Broadway, New York City, to
in

gage

Irving
the

securities

Resnick

firm.

officer

a

of

Co., Inc.
Corp.

He

is

a

was

has
52
en¬

formerly

of
an

Cantor/Fitzgerald &
and
Trinity Securities

a

The

The picture

plants might
the

optimistic

more

one-sixth
At

nuclear

of

on

20

years

Presumably,

rates

Jess opti-

of

building

of

the

plant

electricity would increase
rapid ly in subsequent years.

Should

we

nuclear

and

smaller

the

electrical

output

by substitution
actor

the

for

of

tially

the

and

firebox

and

same

differ
only

nuclear

a

essen-

will

so

re-

boiler.

The steam turbines will be

the

electric

generators.
The gradual
introduction
of
nuclear
power
does not represent a new

industry

but merely the modification of
familiar

The

one.

owned
nanced

by them.

energy is a monopoly
Federal Government.

mnnnnniv

novPi

substitution

for an
tor
an

old
old

of

a

new

fuel

must take
take
one, hut
but this
tnis must
on£

place rather

slowly than the

more

cnhctitiitinn nf
in mmsubstitution
01 nil
oil formal
toi coal in
com

mercial power furnaces because a

growth of nuclear power I

suggested in my illustration
occur in a period of general

lndustrial
a

for

accompanied

expansion

very rapidly rising demand
electric power.
Should this

be

prediction

would

nowpr

wrong,

nuclear

nrnbahlv ho less im-

power would probably be less lm
im

portant

in

this

than

country

have suggested

I

1

minor

tactor

in

power

a

will be

a

major expansion

°f P°wer

Plants, the demand for
other fuels in this period will inrather than

crease

The

building of

decrease.

OUpctjons

aw

considerable
large nuclear power
plants will make some demand on
skills

special
rials.

the

a

These

and
will

special

largely

mate-

fall

in

general area of the chemical

metallurgical

and

industries and

should be readily absorbed.
I

been

have

costs

not go up

and

that

will

appreciably before 1975,
nuclear

fore be supplying
our

fuels

power

fuel will

there-

only 2% to 10%
by
1975.

needs

and in other uses of atomic
which I have not mentioned. I sincerely hope the President's suggestion will be carried
out successfully.
.,

von

well

are

.

__

..

lr

Atomic Energy No Worldwide
Panacea
In conclusion, let me sound a
of

The

warning.

of

use

atonfdc energy for peaceful purcertainly is not

poses

panacea

a

for a11 the world's ills. In backward parts of the world, cheap

power is of little help until there
are useful outlets tor it Atomic
sets energy can be only one factor m

things that

needs to be done is to change the
Atomic

Energ

tbe

under

which

Act

This has been

m0nopoly

consideration

by the Joint

congressional Committee on
Atomic Energy and by the Atomic
Commission
and

year

for

been

about

a

legislation

proposed

'recently

has

introduced

in

congress

the standard of living,
The Production of power is one
°fject o£ the P<;?celul uses of
'atoimc energy. Other aspects mraising

clude tbe benefits we already see
frQm the contributions of atomic
energy to medicine, to agriculture
and in otber fields,
We believe that

Difficult
.

.

Financial
.

.

,

.

atomic

Problems
.

,

,

Financlal and technical prob-

,

Commission. However for the
^as^. *w0 y^ars there have been
y/nous studies made by associa-

Hons of private companies Pr®Paratory to getting into this field.

rent to

war.

tetiried,

we

strength in

our

is a vital deter-

weapons

If peace can be main-

good

have

to

reason

bope tbat £he economy of the free
worjd wm be invigorated by the
<jeVeloPment of this

new resource

which science has discovered,

Blyth Group Offers
No. Nat. Gas ZYq.% Debs.
^
Blyth & Co.,
Inc., heads

a group

Su.fh^r
^lblit®d 11tleh^<® °„fp£

who offered on May 11 $40,000,000
of 3V4% sinking fund debentures

^unt
of reJearch
a™unt,oi research

The

ta then-

own

m their own

of the Northern Natural Gas Co.
debentures> priced at i0l.45%

alr.ead.y made,

in prospect, angreater investment by

tlclPa's

or

_

private companies.
nrincinal

me

Nevertheless,

burden

PrmciP£U

of

nuclear

ouraen 01

nuclear

development both

power

financially

will

techmhave to

^any ana nnanciaiiy, win nave to
be carried by the government for
some

good

£r

to

years
reason

have

We

come.

to hope that by

1960

1965> technical advances will be

sufficient

iustifv

to

™pickhrg
nanciai

private

mos" oFthe

up

technical

and

development

can-

flof

burden

construction

and

As a fmal topic, I would like
to return to the question of

nupower
in
other
countries
S55L_P' ™~®? A.-a
Earlier, I suggested that a com.

clear

power

fnrpipn

here and

what
the
20

are

support

Power

higher

nuour

posts

are

Europe

than

gtm hi her in

some

parts of

some

to

was

noiipV

generally

had

for developing

reason

in

the worid

i have

difficulty in finding out

these

costs

estimated

In

are.

cost

of

mills per kilowatt

Japan,

power

is

hour, prob-

ably the highest of any industrialized country.
The best figures I
can

get

United
mills

as

in

or

examples

Europe

Kingdom,
more

per

are:

of power
For the

about

seven

kilowatt hour;

interest

accrued

and

costs

assuming that the

conventional

of

As

of tbe first

one

other

of

number

rnmnptitivo

normal

en^

pelling

...

nuclear

Since

tn

this

energy

hote

The transition from this Federal

m-Wate

in-

and
fis—

power

But at present,
of

atomic

the

United Nations, suggested an
temational pool of materials
knowledge. The amounts of
sionable material needed by

by the privately
companies and fi-

power

a

change consists

in the

of

or

operated

1S cieartnat mostoitne special
Knowiedge in tms iiela is neia at
Present m tnestalls ot commisS10n laboratories Or in industrial
groups working directly for the

much

a

power plants
normal power plants

from

power

to the low four to

level,

of

our

J^™8 ™ay be even more difficult.

power

mill

to

whether convennuclear, should be built

fail to reduce costs for

would be nuclear, on cost considerations alone

by

additions

of

tion

from

terms of our total supply of fissionable material in this country,
but the resulting benefits could
be great, both in terms of nuclear

the

of

capacity,

tional

the share
the genera-

in

different

entirely

will be

most

capacity,

power

in other coun¬

pool would be relatively small in

plants in the nation's elec-

Energy

assumption,

the

on

such

nuclear

new

nuclear fuel

use

kilowatt

per

the next 10 to 20 years

over

be

of

costs

own

our

mills

by

picture

power

next

period of development and tran-

sition.

up

business.

principal

are

national

our

1975.

of economical

generation and growth could be
more
rapid in succeeding years,
In
1975,
nearly half the
new

an

outing at the Echo
Country
Club,
Westfield,

predictions I have been

approximately right,
will play an important but not overwhelming role in

successful.

p r o v e s

case

nuclear

have

"Syndicats," organization of

secretaries of

the

nuclear power

supply network will continue
be prjvately owned.'* The bulk

Today no one can predict
whether the nuclear power indus-

The

Anniversary Outing

If

making

1975

in

would

The

tries

trie
Power

totally different type of furnace is
required.

"Syndicate" to Hold

the

hour.

Energy

with
seven

Should power from conventional the one I have drawn for this
fuels start to rise materially in country. Nuclear power may be
cost, nuclear power plants may much more important elsewhere,
well come in faster. In fact, per-phe United Kingdom.
France
haps the most important rele for and Belgium are presumably all
nuclear power may be as a re- capable of developing their own
straining force exerted against nuclear power industries, but they
rising power costs.
If nuclear stjn might appreciate help from
power in 1975 could hold down us# other parts of the world may
the average cost of electricity by need nuclear power more and may
one-quarter of a mill per kilowatt need much more help. To meet
hour, the saving to the country ^h needs, President Eisenhower,
would be $350 million annually, jn his speech of Dec. 8 before the

power

Nuclear

Nuclear

be

extremely low (less than

are

be

II, with its less optiassumptions, the nuclear
share is, of course, smaller

mistic

share

involving
but these

However, since electric residential
half

thus

Case

five

New

or

would

year

In

various

brought into the Northwest either

rates

1975.

10%.

the Co¬

have not "jelled" as yet.
Natural gas will eventuallv
from

in

projected electric generation

on

way

generated

plants

1,400 billion kilowatt-hours in

are

large amounts of power

Lillian

dividend

connection

proceedings

the

two

on

water River in Idaho.

N.

Mr. McKee did not make
any
forecast of future
earnings beyond
1954 but it is understood that the

earnings

con¬

would prob¬

company

Filings with
made

Lake

bills.

projected

of flood

fairly high debt ratio.

a

be

to

steam

The share of nuclear power in the

mistic.

firms,

Revenues

1952

con¬

all

nies, and the
ably have

billion

1,166

and

recent

be

of

from

contributed by the utility compa¬

share

in

should

(Millions)

1953

representing

navigation, etc. The power
component of the co^t would be

opment,

balance

and

follows

value

con¬

common,

explanatory footnotes

tained

large

by

program

amount

an

estimated

earnings for the merged company
have

two

100%

forma

pro

years

of

trol,

the

29

the

in

tributing

since

approximates $13.

Pro

North¬

Company, to plan the

development

benefit

on

Pacific

water-power sites. It is hoped that

gas

44

$152
based

re¬

—

jointly-

new

a

and

Electric

Power

Water

owned

heating,
Millions

Mort

Portland

other

its is estimated that dividend

payments

require

Light, Mountain States Power
merging), Montana Power,

lumbia

from 84 cents to $1.08.

the

will

area

(now

are

remaining unchanged)

dividend

&

the

of

that the rapid

the Federal Government will par¬

after that charge.
It

growth

a capacity might generbillion kilowatt hours out

now

under way, which are expected to
be completed by I960, should pro¬
vide
another three million
KW

Combined revenues in 1953
approximated $37 million.
Pro

a

have

would

tor, such
ate 147

River could

bia

Pacific

Company)

plant.

of

industry

installed capacity of 21 million
kilowatts.
On an 80% plant fac-

that

general power
Northwest, Mr.

the

in

by Federal and other public agen¬

the depreciation re¬
about 14% of gross

being

serve

in Oregon together
in Washington,

area

Idaho,

(which

net plant account of about

a

large

with smaller

developments

new

completed

McKee of Pacific Power & Light

have

generating
an

a

to

may

Mountain States Power Company
pending merger of Pacific
&
Light Company and

four

well

these foreign

considerably before they can

compete

Oi Atomic

Pacific Power & Light Company

The

costs

Application

By OWEN ELY

Power

I

3

are

The

to

due ^ov. 1

debentures

yield

1973
callable at

are

ltle debentuies aie cauanie at

regular

redemption

\n& 1V?IV
fore °ct-

104 45

if

a ii.
1955,

•

31,

fSL?

emption

prices

after Oct.

101.31

rang-

prices

redeemed
;r

to

be-

,Jl
100 after

sinking fund

at

starting

31, 1956.

Proceeds from the current sale
will

be

applied

the

toward

re—

demption in June, 1954. of $40,000,000 of 4%% sinking fund debentures due Nov. 1, 1973.
The

company,

maintains

operates

owns,

a

oioeline

it

transmits

svstem

a"a maintains a Pipenne system
of
approximately
6.o42
miles
through

which

natu-

through which it transmits natu

ral £as, which is scrtd for conSV?1P^ and re8a ? by 27 n?n;
affiliated

gas

utilities,

serving

Ka.ns/£> .N^aska, Iowa and
neighboring states,

lb 1953 Northern Natural Gas*
Co- and( subsidiary companies had
net operating income of $11,474,375 and total operating revenue
of $66,210,401.
j
:•

Joins H. E. Work Co.
(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.

Franham

A.

Damon

is

now

—

asso-

for Belgium, nine to 10 mills and cja^ed wjtb jj E. Work & Co., 10O
probably about the same for
c+rPPf
uP
wae
nrevirmslv
France. Since.the last few mills Bush Street. He was previously
will be the hardest to cut from with Weeden & Co.
.

•

Volume 179

jftUftra«

".jwiwr

-w

jii^vn rr**u

Number 5324.... The Commercial and Financial Chronicle

1

i

-

'

i

•*

'

•

•

*

».

J

i

.J

•>

(2113)

t
%

concerns

•*

everyone

I-

The

StaraM Oil Company

(New Jersey)

business of

refining and

finding,

bringing to market the world's oil is

a

than the 500 million dollars

last year.

big and continuing job — one in which
Standard

Oil

Company (New Jersey),

others, plays

among many

significant

a

part.

in many
ANNUAL mm




*

Ml

The result?

Continuously increasing

of oil in the

reserves

tant to

job is done affects America

ways—and is therefore impor¬
American. Our Annual Re¬

every

for 1953, recently mailed to the

port

284,000

shareholders

company,

tells about

and

of its

some

who

may

oil in 1953

ple lived better, that industry
active,

peo¬

was more

that the free world's economy

prospered.
We took in

interest

*

%

*

more

before, which meant that

ever

more

wages

more

taxes

more

money,

and paid out

and salaries to employees,

you.
%

products.

Our customers used

than

in this job,

our part

high lights

this

own

ground. Modern

More efficient operations.

equipment.

New and better

How this

spent

we

to

divi¬

governments, more

dends to shareholders than in any pre¬

Today, when
are

many

thoughtful people

vious year.

wondering about the economic fu¬

ture,

good to

us.

As far

as we can see

from the

evidence available, the economy

Esso research made great

look

we're glad to say that things

of the

were
ress

free world is stronger now

than at

gasolines

outstanding
among

But

important

more

are

Since

(New Jersey)

*

than hopeful

Standard Oil Company

panies have spent nearly 4
lars

on

new

facilities to

oil needs of free

These

com¬

billion dol¬

help supply the

people...

a

are

vital

omy,

factors in

This is

a

tinue to be

30 Rockefeller

receiving

a copy

of

our

our

continuing

job for 72
our

econ¬

ev¬

process.

years.

It has

It will

con¬

job.

1953'Annual Report,

Company (New Jersey), Room 1626,

Plaza, New York 20, N. Y.

STANDARD OIL COMPANY (NEW JERSEY)
and

nation's

our

erybody benefits.

This year we

IF YOU'D BE INTERESTED in

investments

for they directly affect thousands

been

write Standard Oil

these

people the oil they need—

of businesses and individuals. And

4-billion-

even more

—

*

affiliated

companies

al I
TO

dollar vote of confidence in the future.

intend to invest

*

activities

made to g6t

and its affiliated

prog¬

any

positive actions.

1946

lubricants

the results of dynamic

in this field.

time since World War II.

words

and

strides...

Esso

26

The Commercial and Financial Chronicle.

(2114)

Continued

f rom

relationships

6

page

known

were

.Thursday, May 13, 1954

.

the

to

employee, because he ex¬
perienced them.
He knew, as a

average

Spectacular Changes
In the Banking Scene
proportion of net deposits steril¬

will

ized in non-income producing re¬
serves.
With 22% (could be 26%)

growth

of

net

deposits

takes

that

see

impounded, it
calculation to
Central Reserve City

only

so

slight

a

bank, after maintaining a satis¬
factory secondary reserve invest¬
ment

is

account,
in

stricted

its

somewhat

re¬

lending

capacity
(the most important of its func¬
tions) and in its earning ability.
Calls

Assessment

The

Federal

in

FDIC

of

healthy
bankers

and
much

do

can

a

this

in

Careful analysis of ex¬
which have increased over
130% in the last eight years,
should
produce not only better
earnings but a better understand¬
ing of the real costs of perform¬
ing the services we offer to our

respect.
penses,

customers.
such

In

be

Formula

highly competitive
it is difficult to

a

as

ours,

logical and relate the charges
service

for our

Deposit Insurance

to

capital,

themselves

business

Revision

for

contribute

the

and

price for
inventory—loans—to the cost

our

Corporation formula for assessing
members
of
the
corporation

of

should

rageously met this challenge. We
certainly did not show much
stamina
in the recent unjustifi¬

revised.

be

I

admit

there is

any

upon

proper

hardly
which a

that

actuarial basis
fund

could

be

doing business, but I think all

of

determined, but after 20 years
of
experience,
with
the
fund
amounting to $1.5 billion, a con¬

into

tinuation

tral

of

assessment

of

this

the

has

from assessment

of

rate

excessive.

seems

fund

because

present
been

All

derived

insured banks

on

the

original capital sup¬
plied by the United States Treasand the 12 Federal Reserve
Banks was returned in 1948. In¬
Miy

income

vestment

alone, exclusive

of assessments, has been sufficient
to

all

including
losses in every year since 1940. In
fact, aggregate losses since 1933,
have amounted to $27.9 million,
cover

which

expenses

is less

than

amount

of

It

would
certainly seem
burdensome to continue

come.

unduly

adding at the

mately $80
a

the

year's current investment in¬

one

such

million

which

fund

slight

interest

rate (approxi¬

same

been

degree.

would

year)

per

has

be

used

to

in'

The

public

better

served

by permitting banks to retain a
greater share of their earnings,
thereby enabling them to build

capital funds (another form of
insurance) and to take care of the
up

growing needs of
To

those

of

our

economy.

who

us

are

mem¬

bers of the Federal Reserve

there

tem,

is

tion.

Sys¬
inequity

another

which should receive

atten¬

some

The United States Treasury
each
year
substantial

receives

,

from

revenue

the

Banks—all

serve

Federal

Re¬

earnings in

ex¬

of their requirements for 6%
dividends to their member banks

would

us

reduction

able

I of course

in

if

cou¬

we

interest

rates.

recognize that it fitted

pattern established by Cen¬

a

the

of

needed

are

economic

picture

financial

climate

the

of

mindful

who

authorities

Bank

and

its

benefit

by the Treasury to satisfy

heavy fiscal requirements be¬
of the year.

end

fore the

Never¬
will agree
with
me
that short-term loans,
unlike long-term obligations for
I

theless,

sure

am

you

plant expansion, are not encour¬
aged or created by slight changes
in interest rates.
of the

Some

recent

happenings

helpful to bank earnings and
capital augmentation have been
the expiration of excess profits
the

and

taxes

debt

bad

These

reserves.

other evidences of

a more

for
and

realistic

business

toward

attitude

formula

new

are

hopeful signs which lend encour¬
agement to all of us.

of career training to the
degree that exists today in the
banking fraternity. Wages, hours
and working conditions have been
upgraded tremendously, and many
extras are generally provided in
the form of insurance and

retire¬

benefits.

ment

from

the

York Federal Re¬

New

Bank

serve

question

alone.

about

of the

ness

There

the

is

no

useful¬

great

Reserve Banks

or

the

necessity of member banks carry¬
ing reasonable reserves there, but
it

fair

seems

should

that
to

accrue

credit

some

member

banks

for

they provide the funds which
make possible the earnings paid
annually to the Treasury Depart¬
In

ment.

tice

is

effect, the present

another

form

of

prac¬

taxation

the banks which contribute

upon

to the Federal Reserve.

previously noted, persistent
growth of the banking business
during a period of low money
had

rates

maintain

made

it

difficult

satisfactory

a

to

relation¬

ship between deposits and capital
funds.
With
earnings taxed at
52%, it becomes impossible to add
substantially
to
capital
funds
through retained earnings unless
investors

are

dividends.
are

not

stocks if the

limited
are

deprived

and

attracted

the

some

invest¬
to

bank

earnings potential is
dividend

subjected to

tax in

of

Furthermore,

payments

second

a

hands

income

of

stockholders.

The double taxation

of dividends

certainly needs correction, and it
is hoped

that

some

relief will

be

forthcoming soon, as is suggested
by current Congressional studies.
The

removal

obstacles

to

of

this

reasonable




and

other

earnings

could

Nowhere

is

the

"Big Change"
in banking more apparent than
in employee relations. In the past

income, production and outgo. In
worker does not
just naturally absorb the facts of
economic life; he must be taught.
Moreover, until the problem of
size overtook us, men and women
learned

visors

good

become

to

simply

by

of their

techniques

super¬

observing the
predecessors;

today, they must be taught - the
infinitely more voluminous and
complex techniques of this dif¬
ferent

and age. So we must
have Training Directors, Execu¬
tive Training Programs and Su¬
day

pervisory Training Programs, and
experts in the field of Job Eval¬
uation and Merit Rating, and Apt¬
itude

and

Intelligence Testing.

Of course,

change,

big
opportunities for

there has been

the number of employees
bank has doubled and
imagine this is typical of all

I

own

In

banks.

1934

personnel de¬

our

partment had five
about

today

personnel

one

280

every

we

the

worker

or

for

the payroll;
have 28 in the personnel
people

department,
payroll.

on

about

or

worker

sonnel

employees,

for

one

in

too,

advancement.

In

bank today,

our

approximately one out of 10 peo¬
ple on the payroll is an officer;
approximately one out of seven
is an officer or high-ranking su¬

Obviously,

changed .ratio

reflects

the

on

the

much

greater scope of today's personnel

Twenty

Insurance Plan

of

tent
area

years ago
was

a

Group

about the

ex¬

participation in the
popularly known as

our

now

"fringe

benefits."

also have

a

But

today,

we

Pension

Plan, Hospi¬
tal and Medical Insurance, a Per¬
sonal Savings Plan, a Government
Savings
Bond
Tuition
Plan, a
Refund Plan, an Emergency Loan
Plan—all in addition to such gov¬
ernment-required (but unques¬

tionably beneficial) items as Dis¬
ability Insurance, Old-Age Insur¬
Unemployment

ance,

and

Insurance,
Workmen's Compensation In¬

surance.

However, the really Big Change
lies

not

in

such

concrete

fields

payroll administration, but
rather in problems of
employee
morale, attitude and understand¬
as

ing.

In

previous

business organizations

enough

so

generations,
were

small

that the basic economic

Bankers

and

ETC.

REVISED

CAPITALIZATIONS

pervisor.

Today there are splen¬
opportunities, not only in the
of general banking (as used
be
the
case)
but
also
in

did

125

to

Branch

Office

Management,

In¬

ternational Banking,

Personal and
Corporate Trust, Credit Analysis
and
Administration,
Investment
Analysis and Administration, and
specialization in such varied fields

New

industry, the public utilities, and
others.

many

The

fine

character

morale of young

engaged

and

and

men

high

women

banking

in

tribute to

today are a
system of employee

our

training which aims to guide the
individual in the work best suited
him

to

York,

business

he

that

so

will

May 11,

on

Bank

149 Maiden

achieve

ing—so long as freedom of enter¬
prise prevails.
Despite all of the inroads which
been
made upon the frbe

bank

occupied the
first building designed to its own

specifications at Wall and Pearl
the main office erected
1926, is now at 74 Wall Street.

Streets,
in

Under construction is a new main

office
site

at

Wall

30

the

of

Office and

Street,'former

United

States

adjoining the old Subwhere George Wash¬

ington

inaugurated.

was

the

presenting to the public
a
copy of a
marine painting of
the "Flying Cloud," h.storic clip¬
per ship, and a brief history of
the bank by Clarence G. Michalis,
Chairman

of

the

V

Joseph
made

.v

«**

V

V

has

New

York,

nounced.

been

Mr.

the

must

overlook

not

need

our

have

has

ernization Loan Department since
it

organized two

was

'

Jfc

ago.

years

'

'

The retirement, effective June
1, 1954, of Silas A. Miller, Assis¬
tant
Vice-President,
was
an¬
nounced by Allan Sproul, Presi¬
Mr. Miller

of New York.

the

in

Bank

1918

came

became

and

to
an

officer in January 1936. He served

Manager of the Securities De¬
partment from 1936 to 1939 when
as

he

became

President.

an

For

Assistant

Vice-

than

thirty

more

his time has

years

to open market

been

devoted

operations in Gov¬

Robert V.

Roosa, Assistant VicePresident, now in the Research
Department, will succeed Mr. Mil¬
in

ler

market operations

open

Since

1942.

1946, following
from military serv¬
been with the Bank

his discharge

he has

on

own

in¬

search Department. He became an

full-time

a

officer of
In

Meetings
To Be Held on Kentucky
Turnpike Financing
Lawrence

W.

in

the

Mr.

years

Re¬

1951, and
in

1953.

has

Roosa

closc-ly associated with

open

the

of

institu¬

two

tions, subject to approval of the
stockholders

Bank's

Comptroller

of

Stockholders
meet

on'

to

the

of

u r renc y.

each

7

June

and

C

the

of

bank

vpte

will

the

on

proposal.
With

totaling

resources

be known

as

First Suffolk Na¬

of

Bank

$38,-

institution,

merged

the

000,000,

will

Huntington,

largest commercial bank in
Suffolk i County
and
the third

be the

largest

Suffolk

and

Nassau

in

counties. The latest merger marks
another step in the

further growth

Suffolk which, less than

First

of

ago,
had total re¬
approximately $8,000,-

years

of

President,

Under its current

000.

Heaney, First Suffolk
expanded
through
two
similar
consolidations
from
its original
office in Huntington to two addi¬
tional offices
in Northport and
one
in East Northport.
The investment banking,firm of'
Shields & Company has entered
George A.

into, and will perform, certain
underwriting agreements to facil¬
itate

consolidation.

the

*

*

Donald

elected

/ 1

*

Jones

R.

has

Cashier

Assistant

...

been

of

the

Franklin National Bank, Franklin

Square, N. Y., according to an an¬
made

nouncement

May

on

4

by

Arthur T. Roth, President.
Mr. Jones will assist

in the de¬

branch operations
throughout the eight offices of the
Franklin National banking system
velopment

of

special emphasis being placed

commercial lending operations.

on

He

brings

the bank more
of experience

to

than fourteen years

with the ChemicalBank and Trust

Company of New York.

Office

The

of

Comptroller

of

njmde ef¬

Currency approved and

fective, as of the close of business
April 23, the merger of The Citi¬
National

zens

stock

common

Troy,
of

of

with

Y.,

N.

Port

with

$100,000,

into

N.

City Bank of Troy,

National

The

of

Y.,

Bank

Henry,

Port

Henry,

stock

common

The merged* was

$630,000.

ef¬

market operations.

fected under the charter and title

Spencer S. Marsh, Jr., presently
Manager of the Securities Depart¬
ment, continues in that capacity,
with
direct
responsibility
for
maintaining on behalf of the Bank

of

.

a

active

more

liaison

with

the

and securities markets.

Wetherby, Governor of Kentucky,
announced May 10 that informa¬

money

tion meetings will be held to

effective

ex¬

Bank

in

Vice-President

recent

been

Information

the

Assistant

basis

Com¬

Trust

and

Amityville, New York
they
had
approved

of

consolidation

research work for the
during the summers of 1941

Bank
and

in

Mr. Roosa

First

the

announced

with

securities.

ernment

Bank

Hunt¬

of

and

York

New

National

dent of the Federal Reserve Bank

we

responsibility in adher¬
ing to the fundamentals of it.

Honorable

an¬

but

dividual

The

bank

Manager of the bank's Mod¬

ice,

we

of

Wiesenthal

therefore

survival,

been

Exchange Bank Trust Com¬

pany,

ington

three

Secretary

Bank

National

sources

Wiesenthal
Assistant

an

Corn

Board.

of directors of First

boards

Suffolk

tional

the

is

bank

joint statement issued May

a

the

to

anniversary,

Government securities.

its

Assay

Treasury,

Marking

6

pany

the

1852

In

did special

feel that

of

Front Street.

enterprise system, it,has demon¬
strated its ability to withstand the
shocks and pressure from those
who would tear it down, and I
for

floor

Lane, at the corner of

have

fear

for

doors

second

the

on

In

1829

Savings,

for

its

opened

oil and gas, the steel

textiles,

as

ago

years

Seamen's

The

field

per¬

100

every

BRANCHES

NEW

NEW OFFICERS,

a

20 years

in my

CONSOLIDATIONS

be

other words, the

no

In Banking

work.

As

ors

Employee Relations "Big Change"

for

adding modestly to their
surplus. In 1953 the United States
Treasury
received
$82
million

salaries

bank¬ maxmum success. The degree of
ing changes of the last two dec¬ success, of course, depends some¬
ades would be incomplete without
what upon
the opportunites for
taking note of the greatly im-. banking
itself — and
these
are
proved vocational opportunities. multiplying and will continue to
I doubt if any field of business
multiply with increasing popula¬
or industry has developed
a pro¬
tion and rising standards of liv¬

cess

and

personal observation,
(including his own)
paid only if corporate
income was healthy. Today, how¬
ever, sheer corporate size has ob¬
scured
the
relationship between

that

This brief commentary on

gram

News About Banks

of

matter

June

1,

John

1954,

J.

City

Bank

of

At the effective date of merger,

the merged bank will have captal
stock of $600,000, dividend into

120,000 shares of common stock of
the

Mr. Sproul also announced that

National

"The

Troy."

par

value of $5.00 each; sur¬

plus of $2,000,000; and

undivided
profits of not less than $750,000.

plain the details of the public fi¬

Larkin has been appointed an of¬

nancing

of the initial project of
Kentucky Turnpike. This fi¬
nancing
will
involve
approxi¬

ficer

the

and

assigned to the Se¬
curities Department. He is to be

Troy

mately

$38,500,000

primarily concerned with the

appeared in these columns in the

wealth

of

Revenue
will

be

Curlin,
and

Common¬

Kentucky

bonds.

The

accompanied

Highway

Turnpike

ecution

Governor

tions.

by

W.

P.

Commissioner,

several other members of his

staff.

The

will be
at

of

meeting in New York

Thursday, May 13, 1954

on

3:00

p.m.,

Eastern

with

Daylight

the

title

of

Mariager,

has been

of

market

open

ex¬

opera¬

the Securities

cept

for

when

he

has

He

since

65

Liberty

Chicago it will be held
May 14, 1954 at 11:00
Daylight

Saving

in

on

Friday,

a.m.

Central

Time,

at

the

Field

Auditorium, 135 South La-

Salle

Street.

Further

be obtained from

Co.,

fiscal

details

period

the
was

been

Department

ex¬

1941-1947

in rnilitary service.

advisers

to

the

a

tucky Department of Highways.

6, 1954, page 2008.

the sale

By

Brockton

❖

ton,

National

J.

H.

ParkfcJr., partner of
Whitney ^Company, has

been elected to the Board of Trus¬
tees

of

the

United

States

Trust

Company of New York, it was an¬
nounced

on

Bank,

*«*

for

Summit, N. J.
Assistant

was

recently elected
Mr.

Treasurer.

in
during World War II.
previously

served

*

Mr.

ization since

Whitney

1941.

organ¬

head

years

teller of The Citizens Trust Co. of

G.

a

d'Andelot

dent of The

the

Scranton,

May 5.

Mayer
Navy

*

Belin, Presi¬

First National

Company, Mr. Park has been as¬
sociated with the

its

capital stock from $500,$600,000 effective April 28.

May 6 by Benjamin

Formerly with J./P. Morgan &

The

Brock¬

increased

Massachusetts

000 to

*!"

Samuel C.

;■

of new stock

common

Special Assistant

Strong, President.

Ken¬

issue of May

1952.

may

Glore, Forgan &

Bank,

Robert H. Mayer,
.

Street;

The Ticonderoga Na¬
Ticonderoga, N. Y.

with

tional

•f

Saving Time, at the Chamber of

Commerce,

previous item on the merger
National
City Bank of

The

i.

Mr. Larkin carqe to the Bank in
1940 and has been continuously
in

A

of

Pennsylvania,

Bank,

died
i

on

Volume 179

Number 5324

...

The Commercial and Financial Chronicle

(2115)
ADVERTISEMENT

ADVERTISEMENT

UNION

PACIFIC RAILROAD COMPANY
FIFTY-SEVENTH

REPORT OF THE BOARD

OF

j

TO-- STOCKHOLDERS OF UNION PACIFIC

ANNUAL

REPORT —YEAR

DECEMBER

RAILROAD

31,

M

1953

OPERATING EXPENSES

York, N. Y., April 29, 1954.
COMPANY:

The Board of Directors submits the

following report for the Union Pacific Rail¬
Company, including its * Leased Lines, for the year ended Dec. 31, 1953.

road

ENDED

DIRECTORS

New

/

ADVERTISEMENT

The slight increase in the
percentage ratio of operating expenses to
operating
revenues resulted from the greater
proportionate increase in operating
expenses
than in operating revenues.
Notwithstanding the difficult problems encoun¬
tered in controlling expenses under
present-day conditions, determined efforts
are continuing to increase the net of
revenues over
expenses by improvement
in operational methods and modernization of
plant and equipment to effect

greater efficiency in operations.

CONDENSED

STATEMENT

OF

INCOME

Wage payments constituted about
1953.

1953

1952

revenues

$530,024,300

$520,221,326

Operating

expenses

$400,427,365

$389,840,054

77,636,443
23,100,566

'79,958,000

$ 28,859,926

$ 32,761,120

(including taxes on income from sources
other than transportation
operations.)!

other

and other

charges..:

34,318,992
13,003,414

33,608,842
8,218,892

$ 76,182,332

$ 74,588,854

5,752,119

5,861,628

_________

Net income from all sources______
Released from "Reserve against possible
funds on U. S. Government
shipments"
Total

17,662,152

(ex¬

income__

Total income

Fixed

of

operating

during

expenses

was accounted for by
The most substantial of these was an increase of
40 per
hour, retroactive to December 1, 1952, which was awarded to
organized em¬
ployes by a referee appointed by the President of the United States in con¬
nection witty demands for higher wages.
Additionally, demands of trainmen
and firemen were settled by
granting a wage increase of

50 per hour, effective
16, 1953, and a third week of annual vacation, starting in
1954, to
employes having 15 or more years of continuous service. At the
clqse of the
year, negotiations were under way with other
operating employes and with

$ 70,430,213

$ 68,727,226

The number of man-hours paid for increased
of the larger volume of
freight business

one per
cent, primarily because
handled, and because of numerous
improve and speed up freight service to meet shippers'
requirements, maintain a favorable competitive position with other
railroads,
and improve our services with relation to other forms
of transportation.

taken

measures

of

these

of

seventh

to

measures

Typical
provisions for guaranteed sixth morning instead
delivery at Chicago of perishable shipments from the
the

were

morning

Pacifc

Coast,! and inauguration of a new freight service for handling, on flat
highway truck trailers containing merchandise shipments picked up at
and leaving Los Angeles in the
evening for following early morning delivery
at Las Vegas, and the
subsequent extension of this service to Salt Lake City.
cars,

re¬

for disposition..

535,127

938,258

$ 70,965,340

$ 69,665,484

Cost

of material and supplies used

siderably greater than last
As indicated
on

cent

per

non-operating employes.

cluding income taxes)
All

60

portion of the rise in expenses,

December

Equipment and joint facility rents—net charge
Net income from transportation
operations
Net income from oil and gas
operations

considerable

rate increases.

wage

Operating

Taxes

A

above, net income from transportation operations includes taxes
income from other sources, in
conformity with accounting regulations of the
If Federal taxes on oil and gas income were

Interstate Commerce Commission.
added back to

(transportation income and subtracted from oil and

gas

income,

net income from

in maintenance and operation, was con¬
principally because of higher prices of fuel

year,

various steel products.

and

Charges for depreciation of rolling stock
1952, chiefly because of new acquisitions.

about $825,000 greater than

were

in

transportation operations would be $39.8 million in 1953 and
1952, while net income from oil and gas operations would be
reduced to $23.4 million in 1953 and $23.1 million in 1952.

Favorable factors which counteracted to some extent the effect of
the matters
mentioned above, were freedom from floods such as
those which occurred in

Net

overtime man-hours paid for at premium rates.

$43.3

on

million in

income

from

oil and gas

transportation

income, represented in 1953

transportation

property

(less

income

for

per

a

adding back Federal

return

and

amortization)

disposition, before appropriation of dividends

and common stocks of Union Pacific Railroad

taxes

1952,

milder temperatures,

less

snowfall, and

a

reduction

of

22

cent

per

Co., represented

a

on

of

preferred

return of 7.69

the average equity during the year of Union Pacific Stockholders
Company (par value .of Gapital stock plus surplus), which compared

TAXES
State

and

county

valuations

on

taxes

because

greater

were

of

somewhat

higher

assessed

property and slightly increased ad valorem tax rates.

Y

per cent on

in

the

with

return

a

of

7.94

per

cen(; in 1952.

Net earnings

per

share of

common

stock, after preferred dividends, amounted to $15.07, or 30 cents more per share
than in 1952.

The

decrease

income.

The

taxes for
of

the

of

REVENUES

in

Internal

the

Federal

tax

rate

income
the

was

1953, taxable income

$9,863,222

OPERATING

in

Y

average investment in

on

for

depreciation
cent in 1952.

reserves

3.92 per cent compared with 4.41

Total

operations, after

in

cost

taxes

occasioned

was

in

same

both

years.

In

by

smaller

taxable

determining income

reduced (as permitted under Section 124A
by approximately $13,896,036, compared with
representing amortization, on a 5-year basis, of portions
equipment and other improvements certified by the Office of
was

Revenue Code)

1952,

of

Defense Mobilization to be necessary in the interest of national defense. These
While

the

general

level of freight rates remained

two-thirds of the increase

in Freight

revenue

over

unchanged

in

1953,

amounts exceeded

about

1952

represents the effect
effective May 2, 1952,

during the forepart of the year of the rate increases
authorized by the Interstate Commerce
Commission, which raised the average
revenue per ton-mile for the
year by 2.2 per cent.
The remainder of the rise
was | attributable to the
larger volume of freight handled. Revenue ton-miles
increased 1.2 per cent. Freight traffic was influenced

favorably and substan¬
tially by the absence of any major industrial labor disturbances, such as the
protracted steel strike of June-July, 1952.
During the first seven months,
volume increased about 4 per cent, but
curing
about 2 per cent when economic
activity in

the last five months it decreased

many

lines slowed down.

commodity categories reflecting the largest revenue increases were: am¬
munition and explosives, as the result of heavier shipments
by the Government
from ordnance plants to
storage depots; automobiles, motor trucks, and parts,

because of unrestricted production made possible
by discontinuance of Govern¬
ment allocation of metals; iron ore and iron and steel
products, shipments of
which were reduced in 1952 by the steel strike; lumber and
plywood, moving
Pacific Coast

areas

in response to

ment of 95 cents in
a

1952. However, such reductions in income taxes constitute
tax deferment only and not necessarily a true tax saving, because after the
of the improvements has been amortized, no
depreciation on them will

cost

be

allowable

brisk demand occasioned

for income tax purposes.
Accordingly, income taxes in future
will be greater than if the amortization had not been allowable.

years

The

The

eastward from

charges against income, under Interstate Commerce Commis¬
regulations, for depreciation on such improvements, by $11,526,888 and
$8,117,046, respectively, thus reducing income taxes by about $5,993,982 in
1953 and $4,220,864 in 1952.
The consequent betterment in net income for
1953 was equivalent to $1.35 per share of common stock
compared with better¬
sion

higher
caused

Total

taxes

revenues

$17.46

important

revenue

decreases

were

in:

bituminous

coal, because of

and

Federal

retirement

taxes

for

1953

to

share of

equivalent

were

$1,388.00

per

stock

common

Stockholders' equity

($15.07

employe.

per

to

$2.39

or

14.7

Total
per

per

cent

of

operating
equivalent to

gross

taxes

were

also

share

more

than

the Common

share) in net earnings.

EQUIPMENT AND JOINT FACILITY RENTS
The greater net charge for Equipment and joint facility rents

by

sharp rise of $5,517,177

a

or

34

rents,

per

chiefly because of increases
freight refrigerator cars. The rate

was

per

cent

in

was

net payments for

occasioned

Equipment

the

in

mileage rate payable for use of
from 30 per mile to 3V20
mile three months later. Most of the
increased

milder, weather

effective January

oil and natural gas for coal as

payments for such equipment are made to the Pacific Fruit Express Co., in the
earnings of which the Union Pacific shares as a joint owner with the Southern

of smaller crops

Pacific.

under

than in 1952.

conditions, continuation of the trend toward substitution of
fuel, and less movement to Government agencies,
notably the Hanford project at Richland, Washington; wheat and corn, because

in the Middle West and holding of available supplies in storage
loans; and hogs, owing to fewer being raised on Middle
Western farms and prevalence in some areas, of vesicular
exanthema, com¬
Government

monly known

as

The

1, 1953, and to 40

net

charge
.

"VE disease."

The decline of 8.4 per cent in

Y

OIL
Passenger

revenue

was

occasioned

for

Joint

••■-■'•Y

AND

facility
■/,

rents

was

GAS

increase

other products.

7 per

February, and in Colorado and Wyoming during June.

Department of

occasioned by the payment in 1952 by
additional compensation for terminal services

the Post
in

con¬

nection with mail carried in 1951, and by the diversion in 1953 of some mail to
other forms of transportation by the Post Office Department.
*

Leased
Los
are

Lines

Oregon Short Line R.R. Co., Oregon-Washington R.R. & Navigation Co.,
Angeles & Salt Lake R.R. Co., and The St. Joseph and Grand Island Ry. Co. Figures
stated on a consolidated
basis, excluding .offsetting accounts between companies.

4,

in

receipts was brought about by higher prices of oil, gas and
The oil price increases became effective in California during

and

sales

of oil

and

gas

particularly in the Wilmington field. Less maintenance work in this
however, accounts for the decrease in production expenses. The rise

program,

field,

are:




1953
■

The volume of produc¬
decreased in all of the fields of importance in
which the Company is interested, the decrease in oil production being about
5 per cent and in gas production about 10 per cent, under 1952 levels.
The
increase in intangible expenditures was due primarily to a more active drilling
tion

Office

in
.Y

OPERATIONS

The

was

■

by reduced

generally, and less military movements because of the change in the
revenue passengers carried one mile fell off
by
cent and the average revenue per passenger-mile decreased 1.6 per cent.
revenue

less

"'

Korean situation. The number of

drop in Mail

slightly

■

rail travel

The

c.

insurance

by

phosphorus,
operation during
the year; soda products, reflecting expanded production at
Westvaco, Wyoming;
and hay, of which a large volume moved at
temporarily reduced freight rates
for drought relief in Missouri,
Arkansas, Texas, and other stricken areas.
most

unemployment

by increased payrolls.

and

per

continued expansion in building construction;
chemicals, primarily
from a new plant at Soda Springs/Idaho, which commenced

The

Federal

were

in

taxes

was

principally in the Rangely field where taxes
a new "severance tax" in Colorado.

quadrupled because of

were

more

than
;

27

28

The Commercial and Financial Chronicle... Thursday, May 13, 1954

(2116)

Continued from page

ited

4

the likelihood of its opera¬

as

The

coin standard is no
It does not balance the

we

The Cold Standard

leave to others best

press us as

the confreres on this side. But his wor¬
ries are easily resolved. True, he
says, doubling the gold price and
importing a stupendous volume of
gold would enlarge the American
it still is with

monetary

base

fashion

if the

—

that

is

needed

in a dangerous
expansion were

pari

is

that

all

But

controlled.

rot

consolidation

Not

with

passau

devaluation

ment

that

both

evils:

the

general

alleged

shortage of gold, and its so-called
mal-distribution. Since gold and
dollar

the

interchangeable,

are

the dollar price of the
down the gold value of

writing

up

one—or

its gold purchases the Federal Re¬
serve should sell bonds out of its

to-correct

needed

is

it

the other—is supposed to

international
could

trade

finance

and

competitive
devaluations,
promote
wasteful
capital flights, flood the markets
with
unprecedented
speculative
movements, and unsettle whatever
little stability had been arrived at.
only

unleash

Unfree

The

What

the

about

in

market

Free

gold

let

to

"realistic"

own

level?

free

of the

American

balance

of

pay¬

mod¬
est cut in Foreign Aid to create
an export surplus which the outer

ments, it would take only

fering gold, thus driving the dol¬
above the mint par. The
premium on the Canadian

up

current

is

currency

an

instructive

in

case

point.
Patently, dollar appreciation
(gold depreciation) is not con¬
templated by the advocates of the
so-called free market. What, they
mean

the Federal Reserve

is that

should stand ready to buy gold at
the

statutory rate, thereby main¬

taining

floor under its price, but
interfere
by
selling
gold. The dollar should find its
"true" value-^downward.
a

should

not

Such

rigged one-way market

a

is bound to bring about a sky¬
rocketing gold price, because the
speculators
would
consider' the
setting up of a Greenback system
—which
a

is

it

what

would

be—as

preliminary to ultimate devalu¬

ation.

The

depreciation might go
length due to the
drain on our gold reserve by the
(temporary) withdrawal of for¬
To
eign-owned dollar balances.

to

almost

avoid

any

the

wild

fluctuations

speculative orgies of such

tion,
at

we

once

might

a

well

as

and

transi¬

proceed

to devalue.

away

total

our

The

idea
for

of
a

nonsensical
convenient
vested

flatipn.

free

a

exchange
that

currency

shenanigan
excuse

interests

The

for

in

supply

—

is

and

a

of




our

about the

After

degree of Kremlin infiltration in government
country is not altogether "hysteria."
all, we have had Hisses, Whites, Rosenbergs, Fuchs,

and

number of others. It hardly behooves the leader

reserve

billions

the

in-

money

of

mum

time to restore an

—

still

providing

another

short-lived relief?
The

Fear

of

Stuart

Halsey,

first

in

Congress,

and

none

in the

Administration, for moneytinkering, open or concealed. But
there

is.

either,
for
in

much

not

none

giving

in the Administration,

the

up

semi-closed

a

not

sentiment

exposed

powers

97.8591%.

first

its

deemable

bonds

prices

at

in

demand

for gold.

gold, our
monetary
management
is
free
from the pressure which the auto¬
are

we

on

electricity,

Iowa

automatism

had

been

guide Federal Re¬
serve
policy. Besides, given the
gold reserves of our central bank,
we
would have to lose a great
deal of gold before the pressure
Yet,

become
even

such

a

effective.

the remote
pressure

to

possibility
keep

the

officials

behind

them

on

—

the path of monetary virtue seems
to

be

them.

a

sinuate
victims
have

frightening

This

does

that

not

they

to

prospect
mean

have

to

in¬

fallen

to

Keynesianism. Times
changed since Mr. Eccles,

suspend
quirements (of the Federal Re¬
serve) altogether," and that "you
might
very
well
issue
(notes)

anything

back
of
this
I have advocated

currency
as
for a long time." No

such profes¬

sional Greenback advocates

are

in

any

responsible

Eisenhower
the fear

position

in

Administration.

of the

the
But

automatism, lim¬

being devoted to them.
can

doubt for

a

moment that both Democrats

surprised if they had. It may now be a question of how to

the

get these matters out of the public eye without loss of
popular standing. There are indications that certain of the
leaders of the Republican party have of late been assailed

Iowa-

The company

natural

from

gas

by such misgivings, and if among the Democrats, ex-Presi¬
dent Truman hopes for political capital from what is going
on,

South

in

of the

revenues

for 1953 aggregated $24,while
net
income
to

$3,036,817.

total

are

being viewed through the spectacles of the pro¬

fessional

politician already engrossed in the campaigns

$23,301,204

set for this autumn.

the

For

operating

The "Political Amateur"

rev¬

and

It

net

has

remained for the

''political amateur" in the
fall should

White House to insist that election results this

$2,667,806.

was

good many members of his party are not so op¬
on the subject. The trouble is that all these ques¬

a

timistic
tions

were

income

and could be made to turn upon

Thomson
Adds to

&

McKinnon

Republican party since its return to power last year.
This, of course, is largely a matter of what is done in Con¬
between this date and the adjournment later this
It is conceivable, of course, that the elections could
turn upon the lack of a good Republican record. That is to
say, the opposition could point to apparent inability of the
Republican Administration to accomplish anything con¬
structive, and thus win popular support. A logical neces-

McKinnon, member

gress

firm of the New York and Ameri¬

year.

Stock

can

Exchanges, one of the
leading stock brokerage
with 39 branch offices in

nation's

firms,

United

21

States

and

into
a

its

new

Canadian

members

Quarter Century Club

dinner

held

in

New

at

York

May 6.
partner

founder
new

Indianapolis,
firm and
the club, inducted the

Holt

Henry
senior

of

of

members and marked the

oc¬

casion

by awarding watches and
pins to the inductees.
firm

The

has

25

employees.

partners

and

The

club, com¬
posed of partners and employees
have

been

associated

Thomson & McKinnon for
ter

century

cludes

123

or

longer,

members.

a

with
quar¬

now

Mr.

in¬

Holt,

with 42 years, is the oldest mem¬
ber in terms of service.
A

feature

dinner

was

of

■

sity in this case, however, would appear to be some good
indication that the opposition has a program of its own
worthy of support.

the

of

the

fourth

the constructive record

of the

% Century Club

Thomson &

who

without

line.

the

part of

communities

'near

operating

1952.

enues

Committee
could

six

216

Nebraska.

year

one

Republicans hope — or did hope —do obtain
political advantage this fall from this whole matter. They
may have begun to wonder whether their earlier judg¬
ments were well founded. We should certainly not be

Natural Gas Co., a non¬

915,966

now

and many

en¬

of

central

municipalities

Total

objective is being well served by what is now go¬

No

Dakota and two municipalities in

600

1945,
that
"we
the
reserve
re¬

drama

retail in 15 municipalities in Iowa,

Governor of the Federal Reserve,
had the boldness to tell a Senate
in

is

about

portions

cities, welcomed 19

money authorities—and the Treas¬
ury

in

purchases

seven

annual

the induction of three

Administration—-chiefly the President and his

The

submitted a very broad pro¬
its good points and its bad points.
who doubt the wisdom of some

advisers—have prepared and
gram to Congress. It has
Those within the party

proposals should be working not merely to block

of the

legislation

—

and hope for re-election by virtue of Mc¬

Carthy

or some

done to

perfect

do
do

so
so

think.

for

other side issue
a

the

sake

of

In

addition,
Richard
F.
Teichgraeber, managing partner
in New York, was also welcomed
into the

club.

meet the
come
see

good;

they

should

political future, or so we

should not the opposition be willing to

party in power on these

clear

but to see what can be

the\ public

for the sake of their own

And why

—

worthy program of action. They should

employees from the firm's Toronto
office.

scheduled to deter¬
serious charges that

were

very

without

affiliated company, and sells it at

virtu¬

ments ceased to

of

serving

Dakota

South

but

cerning himself could be dealt with much more effectively
all the time-wasting, attention-diverting melo¬

redemption

Service Co.

about

Northern

ally suspended in 1924 when, un¬
der Benjamin Strong, gold move¬

would

and

course,

falsity of

ing on daily at the circus. Both the issues supposedly
being studied at the current hearings and all those ques¬
tions with which Senator McCarthy has long been con¬

gaged in the production, trans¬
mission, distribution and sale of

matism of the pure gold standard
is capable of exercising. Of course,
this

re¬

to

of
or

case.

Public

amounted

Although

be

limited

from 101.38% to
special redemption
plus accrued inter¬

at

company

domestic

to

4%

are

general

par,

each

Iowa

is

that

bonds,

much enlightenment on

very

Army officials and Senator McCarthy were hurling at each
other. The fact is, however, that not even this more

the

ranging

par,
and
prices at
est

mortgage

reply that not

truth

the

mine

1983.

new

ignore ugly facts.

for this purpose,

the financing,
together with cash from opera¬
tions for the redemption of $7,500,000 aggregate principal amount

The

all

subject is flowing from the current McCarthy hearings
circus. The hearings now under way were not designed

net proceeds from

of

to assess. But to act or talk as if any and

the

•

series due

or

One may

bonds,

The company intends to use

inherent

standard

is to

3%, series
due May 1, 1S84, at 98.375% and
accrued interest, to yield approxi¬
mately 3.08%. The group won
award of the issue at competitive
sale
on
May 10 on a bid of
mortgage

also

sentiment

and

Inc.

Co.

&

by

come

activity to make ourselves secure in this respect, or any
concern over the matter, is to be labeled mere "hysteria"

associates on May 11 offered $7,500,000 of Iowa Public Service Co.

South Dakota

Automatism

the

those who worked with him. Whether

or

being done to rid us of this danger is a matter about
opinions might, we suppose, well differ—since in¬
formation on the subject is by its very nature difficult to

Offers Utility Bonds

in

Fortunately, there is not much

Truman

to Mr.

Halsey, Sfuari Group

western and north

beyond

now, we have
nothing at all to fear in these matters, no thanks are due

which

communities

the

turn

deeply perturbed by such revelations have been

seeing things under the bed. If by

are

everything humanly possible has now been done or is now

flowing. If that did not succeed
in bridging the famous "gap," why
encore

and

citizens.

should

another

have been

Soviet

the

freedom:

of

Deal, under whom a good deal of the treason of
these individuals flourished, to speak as if those of us who

outlook.

monetary

is high

it

a

the Fair

the

of

as

elementary freedom, the right to
own gold, to the American citizen,
a
right that has been bestowed
lately even on people with a mini¬

giving

a

fostering

outright

to

gold

with

—

...

market

that

tantamount

was

twice

a

jTcorld would have to pay by of¬
lar

Aid

it find its
To begin

with, it would not be free at all.
Suppose the dollar rises against
gold: would the gentlemen who
promote this program stand for
that? Given the inherent strength

fact

the

$46 billion postwar Foreign

some

trick

Market

proposed

Witness

international
And

well

as

Merely Hysteria J'
;,s J.;
is, of course,; that ^uneasiness

and elsewhere in this

kill both

birds. What it does in reality is
portfolio; tightening of regulations to
promote an
inflationary up¬
W, X, etc., might help, too. That turn.
Devaluation, once completed,
the liquidation of $20-odd billon
creates
the
presumption
of
a
worth of bonds may be a bit em¬
forthcoming boom that alone in¬
barrassing to the bond market, is
duces a "perverted" flow of capi¬
recognized. Is that not a "small
tal into this country, depleting the
price" America would pay for
reserves of other nations. The im¬
restoring the world's balances of
pact would be further enhanced
X^yments, he asks. In reality, our
by the speculative
stimulus at
Tkyhd market would be driven into
home
and
by increased foreign
£
panic (remember the modest
buying of American products. The
attempt a year ago to put over a
triple-pronged process — capital
30-year bond on a Vh% yield
influx, plus export and domestic
base?)
with incalculable conse¬
boom—would force our prices up¬
quences, especially so at a time
ward, compelling the foreigners
when
the Federal
budget is in
to spend more and more of their
the red.
gold. Pretty soon, the world would
To cure Europe's dollar pains
find its gold and dollar reserves
—ifor
a
while—America
should
in the process of depletion—back
either submit to strict credit con¬
to the dollar shortage — to be
trols which would break its pros¬
stemmed by exchange restrictions,
perity, or incur the hazards of a if not by another devaluation.
super-inflation. Take your choice.
Dollar shortage has little more
In any case, the abandonment of
than nothing to do with gold it¬
the "fixed point of reference" in
self.

domestic

the

all propaganda for dol¬
looms the argu¬

Behind
lar

Shortage

Gold

Kinds of

Two

It does nob im¬
^
,

of

stabilization

and

qualified to judge.

particularly statesmanlike.

The fact of the matter

,

as

page

We See

.4s

not

budget automatically. It does

protect
against
unsound credit
practices. But it does exert an in¬
fluence in the right direction, an
influence - that
should
not - be
underestimated.- Under present
react to giving away huge quan¬ (other, than gold) is always ma¬
by. the authorities, it circumstances, the influence would
tities of real things without get¬ nipulated
be psychological rather than any¬
ting anything it needs in return? only by way of budgetary and in¬
terest
rate
but none the less
policies, credit con¬ thing else,
It is refreshing to find a British
trols, etc. Paper money supply is healthy. Above all, it would mean
Keynesian at least considering the
dollar de¬
"free" only in astronomic infla¬ the assurance of no
danger
of
American
inflation,
tions. >■';,
valuation, thus contributing to the
which used to be their favorite
dish,

first

gold

panacea.

Redeemability and

Dollar

Continued jrom

tion is, still is present.

grounds, letting it be¬

precisely what basic policies they would like to

adopted?

I

[Volume 179

23

(2117)

Number 5324... The Commercial and Financial Chronicle

t.r.

To the Ten Million Owners

f

of Hudson and

:';it
'

H>'

Message From

biles—the stronger,
a motor

Corporation has become

now

news

is of

domestic and
the

vinator and Leonard

appliances—and who will

American
assets

a

efits

powerful force in

and with aggregate yearly

#700,000,000.

Motors, each ben¬

by the greater strength of all, in financial

resources,

in facilities, in dealer organizations,

and above all in the

build

even

imaginative research that will

engineering leadership for

greater

these time honored

You

names.

Moreover, American Motors provides a net¬

with its

plants for most efficient production—
complete appliance manufacturing

own

forge shops ...
engine, transmission and axle facil¬

facilities, body plants, foundries,
with its

own

ities—including its
sources

ucts

mean

own

greater

for the American

plastic plant. These re¬

economies and finer prod¬

public.

many
trade

foreign countries, contributing to world
and the strength of the international

bears their

names.

4

Above

all, American Motors is pledged to

continue

leadership in value—in the fresh, new

Hornet and its

Hudson

performance

Nash dealer you will see the automo¬

America's lowest

hard-and
find

soft-top convertibles. And here you can

Nash

are

great

pio¬

Innovators in the Auto-

motive Industry.
<1 Hudson and

Nash

the world's largest

so

equipped. At

your

dealer, too, is the Metropolitan—a totally

and different kind of

the

to every

We

car on

we

for the Future

will continue to improve

our rec¬

leadership at American Motors, for

that the

our

industries

are

still young

.

we
.

...

that

new

horizons for

living through electrical home appliances

lie ahead

...

and that to reach

our

goal

we must,

necessity, out-think, out-engineer and out¬
our

ill

competitors.

•

This, then, is the driving force behind the

of living.

Today, at leading appliance dealers you
find

will

ironers,
posers,

room

merger

of Hudson and Nash-Kelvinator. You

will

it reflected in

see

ing laboratories, in

Kelvinator, Leonard and ABC Products

our

our

plants, in

our

engineer¬

dealerships and in the

products that bear our honored names.

Kelvinator: refrigerators,

home freezers, washers, dryers,

coolers, water heathrs, garbage dis¬

kitchen cabinets, ice cream cabinets and
refrigeration products. Leonard:

commercial

electric

home freezers.

ranges,

G. W.

MASON

President and Chairman oj the

Board

AMERICAN MOTORS CORPORATION

ABC: washers, dryers, ironers.

„\CA*

Motors

American
At

HUDSON Hornet, Wasp, Jet
1




t *

X

NASH Ambassador, Statesman, Rambler, Metropolitan '

Jk

.

problems of motorizing the world are

far from final solution

Leonard and ABC have

a new way

Si-:'

appliance in the home.

pledge

ord of

Hudson and Nash

today—to every Kelvinator, Leonard

A Promise

value

of Kelvinator,

Leonard

Kelvinator and

service

value

new

and ABC

of

names

con¬

Nash automobiles.

And this announcement of American Motors

better

automobile.

And in the American home,

refrigerators,
are

and

believe that

completely air conditioned cars at hundreds

of dollars less than others
Nash

sell

safety features—

price sedan, station wagon,

service

and

products.

for continental styling

Ambassador, Statesman, Rambler. Here you will
see

sell

to

the road

and ahead-of-time comfort and

serv¬

Kelvinator and Leonard dealers will continue
to

adds

electric ranges,

and

the Hudson

price.

At your

and for the future.

ice Hudson automobiles. Nash dealers will

Jet—an outstanding compact car at an

economy

of progress.

great

...

products will be

the sound policies which

Hudson dealers will continue to sell and

that

'

j

as

confidence. Your investment is

your

secure—now

running mate, the Wasp. And the

that lead in value.

Hudson

every car

Leonard

and

preserved—as well

Hudson dealer are cars that lead all

others in stock-car

engineering concepts that set today's pattern

neers,

in

priceless identity of Hudson, Nash,

tinue

pioneered

economy.

j./

The

won

advanced automotive concepts

new

Likewise, American Motors has plants in

than anyone else, are entitled to

more

Kelvinator

j.

biles that set the pace

work of

responsible for

are

striking evidence of Hudson and Nash

see

At your

As Divisions of American

You,

body construction.

respected

industry. American Motors, with

of #350,000,000

sales of

and

new

Past—Present and Future

driving needs—with the Jet and

Rambler,

creates

as

today's trend toward compact cars to meet

them in the future,

names

by

builders alike

car

<1 Hudson and Nash

automobiles, Kel¬

For the consolidation of thepe four

method recognized

advanced of all

most

current
own

one

foreign

Hudson, Nash, Kelvinator,

Leonard and ABC Owners

know these facts—

special significance to all who

Hudson and Nash

own

car—the

safer, better way to build

an

accomplished fact.
This

To

makers of unitized construction automo¬

i

TODAY,
the Company
merger ofand
thetheHudson
Motor Car
NashKelvinator

.

Appliances

Nash Automobiles.. .Kelvin at or and Leonard

A

'

'KELVINAl OR and LEONA RD Home Appliances

,

id;
1J £

]

30

The Commercial and Financial Chronicle

(2118)

Continued

Bank and Insurance Stocks
EEE

consolida¬

and

tions have been very much in the

reflecting

recently,

news

the

banking

the * past

for

field

con¬

a

evidence in

tinuance of trends in

After

ception of

and with the ex¬
two small con¬

or

one

solidations in the past 12 months,

situation

the
been

been

dustrial
the

in

True, there

about

rumors

of

Bank

has

York

New

relatively quiet.

have

announced in the last two

the

In¬

and

Commerce

possibility of something being

the

proposed merger of the
Hartford-Connecticut Trust Com¬
was

and the Phoenix State Bank
Trust
Company
announced

pany

&

earlier

this

week.

consolida¬

The

subject to stock¬
would create a
million institution operating

tion,

which

is

holders' approval,

$326

of "The Connecti¬

done to revive old discussions and

under the

possible mergers. These, however,

cut Bank & Trust Company." Sup¬

received

have

sideration

little

other

In

serious

for

and

considered

are

con¬

moment

the

areas

activi¬

merger

ties and announcements have been

prominent.

very

of

sections

^*D%nks

In practically all
the
country
larger

being

are

formed

by

and consolidations.

mergers

Part of these changes are under¬
taken

means by which capital
withdrawn from a par¬

a

as

be

may

ticular situation. Sometimes

earn¬

ings are not adequate to support
existing capital and a cash merger
between two banks provides the
opportunity to free a part of the
funds

increase

and

earnings

There is also the

desire, in

personnel.

bank

by

of

rate

the remaining capital.

on

instances, to obtain
ment

the

which

family

has

some

manage¬

new

Frequently
been

interests

a

dominated

and

has

not

tervention
would
that

affairs.

economic

claim

recent

our

been

in

not

perfect,

for

I

instant

one

performance has
it has been

that

without mistakes.

But I do claim

name

that within the

permissible range
in a field where
absolutely
fixed
points
of
reference,
monetary
policy has made its contribution
to the protection of income, em¬
ployment,
and the stability of
purchasing power of the dollar,
in
this period of transition from
a highly stimulated war economy
to a predominantly peace econ¬
of human error,
there
areno

omy.

posedly this would be the largest

The overtime economy, the
hyper-activity economy of late
stockholders ;
1950 to early 1953, did not bear
will be asked to exchange their
the seeds of sustained prosperity.
shares for stock in the new insti¬

bank in the state.
the

As

dead.

variety of Government in¬

a

-

One of the most recent of these

number of large mergers

a

few years ago

a

possibly increase the rate of
earnings on capital funds.
Undoubtedly some of these con¬
siderations were present in the

months.

several years.

tution,

existing

capital

the

surplus

and

It bred the need for the economic

readjustment we are now going
equal the capital funds of the
through.
Monetary action can't
words,
stop a decline in economic activ¬
according to present information,
ity during such a period of transi¬
there will be no reduction in capi¬
tion, but it can help substantially
tal in the aiea. The larger institu¬
to
keep the decline from over¬
tion should be in a position to
reaching the real needs of eco¬
compete effectively in the area
nomic readjustment. That, I think,
and render an improved service to
it has helped to do in this in¬
will

two present banks. In other

customers.

"

.
.

Another proposed merger that

interesting for
cations

the

banks

announced

cussed' at

joint

the

statement

Bank of

of

the

the three
California

being dis¬
April. In a

as

end

is
ramifi¬

many

it

presents, is
combination
of

way

heads

of

the

California, Crocker First

National Bank and

the

the

stance.

If

within

the

economy

now,

or

begins again to
realize its potential for growth,
without
too
many
injections of
short-lived
artificial
stimulants,
this country will have given the
world
a
heartening example of
improved economic stability.

California

Open

year,

Market

Operations

Bank of Los Angeles announced
receptiv.eness to
new
Turning from the general out¬
banking ideas, has also failed to that discussions looking toward a lines of recent central banking
attract capable new personnel. In merger of the three institutionsperformance to particular details
such cases a merger with a more were underway.
of policy execution, I now want
Since that time no additional
aggressive bank serves definite
to touch on certain aspects of our
information has been made avail¬
needs. ..}•
,' T
open market operations during
Another factor involved in some able but it seems unlikely that the this
period. The skeleton of the
statement would haVe discussion of these
of these mergers is the desire to joint
operations has
been made unless the
preliminary been published in the record of
improve and enlarge the service
available to customers. Theoreti¬ basis for an agreement had been
policy actions of the Federal Open

shown

cally

a

larger

a

additional

bank

services

support

can

render

or

Because

New

York

City in the past
banks find
that

decade, many
capital which was formerly

ade¬

quate to service local businesses is
'

longer sufficient. In

no

stances

the

in¬

many

diversification

and

;;£rowth of industry has proceeded
at

a
faster rate than the growth
in bank capital, so that
frequently

the local bank
much

as

of

would like

is unable to
line of

a

grant

credit

because of

it

as

inadequate

capital. By merging and increas¬
ing the size of a bank, the larger

capital thus obtained enables the
bank to take
its customers
Of

course

on

a

the

in the market.

net

by selling stock

advantageous to shareholders

which

not

may

be

a

the basis

merger

of

a

sufficient

fair

the bank

same

return.

can

attain its objective of

tal and at the

than

$1,400,000,000,

There

are

basic factors

to

By

larger capi¬

time preserve

more

the

of

:,j

other

sections of the

of, these

trends

is

likely.

Ne\v York Stock Exchange
Weekly Firm Changes
The New York Stock Exchange
has announced the

following firm

changes:

Com

wtih

Federal

i 11

m

e e

which

Annual

the

of the Board

is

Report

of Governors of the

Reserve

System for 1953,

and there is

some

further discus¬

in

body

of the Board's

sion

the

report.

is

So far

I

as

attention

little

tnis

am aware, very

been

has

paid To

jniloTisMd' record. Maybe that
it should be.

Maybe our ar¬
form and method
were
too
fine-spun to interest
anyone but a central bank .theolor
as

guments

over

Maybe I should let the subjecf rest in peace, since in the de¬

of

the

late

Seymour

N.

I

bate

Sears, Jr. to Eric S. Heyman will
considered

by

the

Exchange

May 20.
Transfer of the Exchange mem¬

bership

of

Frank

Harry A. P

u

j

a

1

A.
s

Miller

will

be

Edwin

to

con¬

sidered May 20.

i

Ehlert

withdrew

from

partnership in John V. Dunne &
Co.

April 30.

of INDIA. LIMITED
to

the

Government in
Kenya Colony and Uganda

Head
i

Office:

,

Branches

26,

Bishopsgate,

London, E. C. 2
in

India,

Pakistan,

Ceylon,
Kenya, Tanganyika,

Burma, Aden,
Uganda, Zanzibar, and Somali-

Laird, Bissell & Meeds

land

Members New York Stock
Exchange
Members American Stock
Exchange

Protectorate.

Authorised Capital

Paid-up

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

£4,562,500
£2,281,250
£3,675,000

Capital

Reserve "Fund
The Bank conducts every

Teletype—NY 1-1248-49

banking

I

and

description of

exchange

business.

Trusteeships aifcLExecutorships
also undertaken

that

nor

small

a

and

bank
reserves?
Among
things, this excludes off¬
setting purchases and sales (even
swaps) of securities which have
the effect of altering the maturity
pattern of the System's portfolio,
and excludes purchases (and sales)
which might be made at times of
Treasury financing in direct fur¬
therance of an integrated program

management

and

credit

policy.
open

market

fined

to short term

securities?

confining operations to transac¬
in Treasury bills.
It has been my view that a cen¬
tral banking system does not discharge its responsibilities and
complete its functions in the best
possible manner, in our present
day economy, by directing
its
open market operations solely to¬
ward putting reserves into or tak¬
ing reserves out of the commer¬
tions

,

ing

that

important

there

of

the Federal Reserve
its functions,

how

performs

System

techniques of
ation

that

believe

I

are

a

present

market oper¬
importance

open

matter

our

of

and,
therefore,
deserve
more
banking and public scrutiny than
they have had.
Let

emphasize immediately

me

that there has been

opinion among
eral aims and

us

no

as

division of

to the

gen¬

lines of credit pol¬

icy during this period. And let
also

me

that, given the general
unanimously adopted,
our
differences as to techniques
may not currently be of first im¬
portance. My concern is not with
degrees of present importance. My
say

we

concern

is

that

knowledge
what

we

there

be

wider

and

are

understanding of
doing, and that it he

critically examined. We are then
less likely to dig a groove which
becomes

a

if

make

change

different
more

Main

purchases

and

promptly

find

in

the

of

the

credit

sales,
its

or

not

ma.y

best

and

reflection

capital markets

country because of imper¬
arbitrage within markets and

fect

between

markets.
Finally, I am
arguing that there have been and

be occasions when

may

rect assistance to
in

the

agement,

field

of

through

di¬

some

Treasury

opera¬

debt

man¬

market

open

operations in securities other than

Treasury bills, will be
nomics

and

good

good eco¬
bank¬

central

ing.
It is illuminating and perhaps
significant that in countries where
traditions

similar

most

are

to

and where the central banks

ours,

have available

broad

a

market in

government securities in which to
conduct
such

operations,

there

squeamishness

as

is

no

have

we

exhibited im using that market to
influence the whole credit struc¬

retain

ing of the Standing Committee on
Banking and Commerce of the

freedom

of action

assist

to

promote, directly and under
appropriate
circumstances,
changes in the availability and
or

cost

of, funds throughout the
money and capital markets, and
freedom of action to assist, di¬
rectly and under appropriate cir¬
cumstances, desirable debt man¬
agement operations of the Treas¬
v-

ury.

and

presently

will

have

They

have

that

prevailing

little

the

or

none

view
of

this.

emphasized the view
Open Market

Federal

Committee, except in the extraor¬
dinary circumstance of a "dis¬
orderly market," should limit its
operations in Government securi¬
ties

solely

operations

to

for

the

of providingpr absorbing

purpose

They hope and

reserves.

expect,
as I understand it, that providing
or
absorbing reserves, by pur¬
chasing or selling Treasury bills,
will quickly be reflected in the
cost and availability of all short
term

credit

trage,
flected

through, arbi¬

and,

will

also

be

quickly re¬
through the longer

out

term markets where the

price and
availability of mortgage money,
corporate funds, and funds for
State and local improvements are
determined.
They ^believe that,

only when

our open

become

in

this

secu¬

freer

and

self reliant, and, therefore,
help market forces .to determine

more

the
all

most

desirable*? allocation

available

of

funds:?,;

at the short end of the

market, is

not

always good enough or cer¬
enough. I believe that since
this country has wisely rejected

tain

most

direct controls; of

omy,

and has placed its chief

our

liance in the indirect and

debt

controls

fiscal

of

econ¬

re¬

imper¬
"policy,*

and monetary
should make the full¬

management,

policy, we
est and best

integrated

these

contribute

tools

to

use

to

sus¬

high levels of production,
employment and income, and to

stability of the dollar.

wise

I

fear

that

we

shall

Other¬
not

able, at all times and under
circumstances, to do the job

be

all
we

should

important.

pushed into direct controls which

Questions

tions

is

to

affect

the volume

of

interest

statement

said:

of the

v

^

"As

part of

Canada, the

Bank

of

our

and

borrowers

cial

structure

the

benefit
of

and
as

Canada

has

doors in

of

finan¬

our

been

of

the
con¬

a

Government

Canada securities since
our

to

money

of lenders

whole,

a

in

trader

amount

Canada

programme

broaden

market for the

of

rates.

hear¬

a

■

improve and

stant

at

1935.

of

opened

we

While the total

holdings of gov¬
securities is necessarily

ernment

our

determined

monetary

by

considerations

policy,

deavored

to

have

we

help

of
en¬

make a mar¬
issues and

ket for all government

have

been

and

ers

substantial

very

sellers.

perform

In

a

buy¬

sense,

we

jobbing function, hold¬
ing the inventories which are in¬
a

dispensable

to

good

a

market.

Investment dealers and banks also

in

operate

naturally

this

on

although

way,

smaller scale.

a

We

would be glad to see both dealers
and banks extend their operations
of

this

Bank

character,

of

part,

have

the

play a smaller
we would always

although
to

expect

and

Canada

be

substantial

a

par¬

ticipant in the market."
Each

has

central

fit

to

vironment.
suit

not

bank,

itself

into

What

course,

own

others

book.

our

of

its

But

do
I

en¬

may

find

it

encouraging that such perceptive
and knowledgeable people as the
Canadians believe there is
of

hand,

one

our

war

mid¬

a

between the extremes

present

our

approach, on the
the extremes of

and

immediate

and

postWar

approach of pegged prices and de¬
tailed

control

over

the

whole in¬

terest rate curve, on the other.

illustrates the statement of

It

col¬

a

league that there should be plenty
of

useful

scope

for

action

between

chilly

indifference

the

central

bank

extremes *of

and

constant

intrusion.

of

tained

the

Governor

dle ground

My own view is that just put¬
ting in and taking out reserves

sonal

level

House of Commons in

market oper¬

circumscribed

are

a

Bank

:

Those who espouse the opposite

circumstances

ment securities be made solely for

.

recent

promise stability, but which really
strangle
enterprise,
efficiency,
The main questions at
issue, I freedom, and growth.
I am not arguing here against
think, are: ,
(1)
Should
Federal
Reserve the proposition that' the primary
purchases and sales of Govern¬ purpose of open market opera¬
Two

in, or taking them out, by
of the Treasury bill market
may involve unnecessarily large

and

do, and that our failure
will not only lessen the prospects
of economic stability, but might
also increase the danger of being

rut, making change dif¬

ficult

are

In

market

is

arguing that there

ture

rity

it

wider and better understand¬

pur¬

cial banking system. I believe that
the central banking ssytem should

will the Government

a

In

practice, as is shown by the pub¬
lished
statistics, this has meant

way,

think

am

sole

operations.

way

tions

Should Federal Reserve
operations be con¬

(2)

I

the

not

market

open

serves

sorbing

debt

of

And

other

of

is

reserves

pose

ab¬

or

ations

policies

NATIONAL BANK
Bankers

reserves,

be

times and places when putting re¬

of providing

purpose

diminishing minority. And maybe

and

be

of

one

was

Money Market

the

the majority was right. As I said
in
the
beginning,
however,
I
be

bership

STOCKS

(L. A. Oibbs, Manager Trading Dept.)

Market

printed

gian.

INSURANCE




of

favoring such action,

continuance

a

frequently

Specialists in Bank Stocks

bank

of

one

number

a

banks in different

and

Bell

a

country which are also undertak¬
ing mergers and because of the

BANK

120

resources

accom¬

largest banks in the country.

earnings,

support the existing capitalization
on

be

merger

Transfer of the Exchange mem¬

result

This is frequently

it may dilute existing

as

the

with combined

local basis.
same

could be obtained

not

of the needs of

care

Should

plished it would result in

of the growth of busi¬
deposits in areas away

and

ness

from

arrived at.

a

better quality of service.

best

can

out

And the

or

mergers

bank

this

accomplished, in
circumstances, by purchases
and sales of Treasury bills.
I am
arguing that putting in or taking

The Central Banks

Bank Stocks

—

member

many

favor
mergers

1G

page

H. E. JOHNSON

By

This Week
Bank

from

Thursday, May 13, 1954

...

-

An

Opportunity

Action for Economic
Our

\

1

for Constructive

Stability

present

situation, in my
opinion, provides the Federal Re¬
serve

System

country with
constructive

and, therefore,* the
an

opportunity for

action

in

the

search

for economic
not

exist

stability, which did
when the System was

established four decades ago. For
better or worse we now have a

large

Federal

debt,

which

over¬

shadows in magnitude all individ¬
ual private debts and is
roughly

equal to private debts in the
gregate.

This

large

debt,

ag¬

repre¬

senting various maturities,
has
given us a national homogeneous

Volume 179

Number 5324... The

securities market,

siderable

which to

extent

a con¬

conditions

all

other

security markets (corporate
securities, mortgages, etc.).
The
Federal Reserve System through
its authority to engage in open
market operations can, if it will,
seek to make its policies effective

operations anywhere in the
maturity range of this national
by

market for

This

government securities.

does

not

in¬

constant

mean

tervention in and manipulation of
the

market, and it certainly does

not

mean-pegging prices. But it
mean
that, if operations in
Treasury
bills
in ' appropriate
does

the subsequent

amounts, and

between

bitrage within and
kets do not

desired
all

in

ar¬

mar¬

cannot achieve the

or

results,

all

at

times

and

circumstances, direct action

b.y the Federal Reserve may give
the
process
a
desirable
assist.

Commercial and Financial Chronicle

pretend that markets
without him.
central

a

So

bank

constantly

made

were

long
and

have

as we

large and
public debt,
a

shifting

(2119)

central

banking,

them to

and

the market

inevitable

to

display

such.

as

The

will

consequence

bank
on

directly

men

should

exert

its

in¬

the cost and availabil¬

ity of credit

be, I

think, to make it difficult for

central

fluence

or

capital, openly and

circumstances may re¬

as

both will be powerful and special
market influences.
Our approach

to

to credit

changing

central bank should be free to' aid

pose us

the market directly in making its

policy, and to debt

man¬

agement
as
well,
should
these facts into account.

take

I

have

already

led

intimated

that

the approach I prefer has nothing
to do with price pegging, nor with

trying
a

to

establish

particular

maintain

and

of " interest

pattern

open

mode

their minds to

of

the

operation,

any

even

other
under

quire,

conditions, and to ex¬
to charges of having mis¬
market

of

or

have done about all that

new

of

overriding credit policy. I believe
that trying
always to do these
things indirectly, through dealing

a

in

only

the

"nearest

thing

to

to

make

dividual decisions under

ments

financing, whenever such aid

try to find

having

the

be given without permanently

banking

from

think

can

have

them

circumstances.

ury

we

central

I

to

prone

the

do

without trying to enshrine
doctrine

reach.

can

are

a

general formula which will spare

of

areas

could

we

done, in practice, during the past
year,

whatever

it

adjustments to large scale Treas¬

violating

"promises" to the market if
change our methods.
We

in

market

them,

31

Moral

used

are

to

in¬

changing

pronounce¬

try to give an

air of permanence to

things which
essentially impermanent. We
want
to
lay out "rules of the
game" which will guide all the
players and, if the players are
properly
numbered,
will
also
guide the spectators. Maybe that

are

is what

we

in

field

the

have been

trying to do

of central banking;
money," will not create a "free to establish monetary "norms" in
have retained our freedom of ac¬ market," but will
keep the central a world which is not normal. I
postwar years destroyed or handi¬
tion
to
meet
changing circum¬ banking system from realizing its doubt if it can be
capped monetary policy. There is
done, but I
stances without endangering pres¬ full potential.
a
think
that
natural and justified
when
it
is
tried
it
aversion
ent policy, and without interfering
It
has
been
said
perhaps un¬
to these practices, but this aver¬
should have the serious attention
with the proper freedom of our kindly, that Americans, in the face
sion is quite beside the point I am
of the international responsibili¬ of bankers and others who are
money and security markets.
discussing.
The
issue
is
not
To sum up, then, I think the ties which have been thrust upon interested in monetary
policy.
whether to peg or not to peg, but

rates,

with

nor

other

practices

which during the war and earlier

whether

at

times

all

and

in

as a

permanent "norm."

We could

all

Similarly, it means that if Treas¬
circumstances
(except
for
dis¬
ury debt management operations
orderly
markets)
the- System
put a temporary but intense strain
should confine itself to shoving
on the facilities of the market, in
reserves in or taking them out at
bringing
about
adjustments
in
the bottom of the credit pile. The
portfolios
of thousands of
in¬
issue is whether there will not be
vestors in
billions of securities,
within

a

largest
should

short period of time, the
single
portfolio
of
all
not
always
stand
aloof

(except for the purchase or sale
of Treasury bills).
Direct aid in

helping to

cushion the effect of

massive maturities, new issues, or
conversions
of
Treasury secu¬

rities, at times when unavoidable

financing

government
otherwise

the

disrupt,

would

to

seem

consistent

with

the

direct

areas

will

and

is

be

not

wnony

primary

de¬

central

bank

publicly renounce the
sibility of such action.

pos¬

and

in

what

would

between

but I want
the

of

bottle

further,
before
accepting
promise of the labels.
So

far

concerned,, I think we,
attracted by the phrase.
habit

our

,haven't

had

money.and

Reserve

all
It suits

are
But

we

System

was

haven't had
free market in government se¬

established;
a

are

and

we

therefore
securities market,

curities,
free

wholly
since the

and

a

government debt climbed to the
higher
magnitudes,
and
open
market operations by the Federal
Reserve
as

System came to be used

principal instrument of credit

a

policy.

We

which

in

have

and

to

have

now

do

a

and

lenders

take

market

of

account

of

supply, availability and cos,t
funds; a market which

I

doubt

mixed

government-private

and capital market such as

pow

I think

a

we

long time to

ideas of "free markets" in the

sector of the

money

economy

present day conditions.
this

think

will do

"traditions"
in

Even

the

come.

should accommodate

the

of

to

I do not

violence to the

central

"good

old

banking.
of

days"

19th

century, when social and
economic
conceptions were dif¬
ferent, I believe they were prac¬
tical
not

about such

suggest

that

things.
any

They did

I

it.

not

do

want

to

tie

merely from
longer term markets
directly, why not shy away from
influencing

influencing

the

distortion
ket

and

short-term

Cur
can

the

in

In

operations

in

and have caused

short-term
short

between

markets.

mar¬

long

other

words,
we
might merely increase or decrease
requirements of particular

reserve

banks
to

reserves

the

directly,

with¬

of

even

intervention

Treasury

bills.

idea

sort

a

as

supplier

of

or

every

Twenty-five

"Floating

I
of

introduce
reductio

on

been

the

ad

ah-

tain

views

on

to

testing ground in

a

such

the

as

present,

credit policv

is

to

ily available bank
The

whole

organization

were

ment

Corporation. Outstanding loans then approximated $31 million;
today they exceed $325 million:
During the forty years of its existence, the Beneficial Loan
System—now operating more than 800 offices in the United States
and Canada-has

program
cn

reserves

at all

manage¬

pretty

can

of

sea

a

much

reserves.

practices with which I
that

have

we

far.

played

credit.

consumer

between

an

important part in the development.

Dealing mainly with families, Beneficial

come

through small loans,

a means

of bridging the

paydays when the family experiences a financial
Last

emergency.

gap

year more

*

than 1,600,000 loans were made

exceeding half-a-billion dollars.

This

By serving the family well, Beneficial Loan
has been able to

Corporation

produce steady earnings for its stockholders

and has

paid regular quarterly cash dividends ever

since its

founding in 1929.

the view of things which
might have been done better. It
persuades the advocates of the

so

i"

consolidated to form the Beneficial Loan

main¬

private market

plus the Treasury's debt
float

pe¬

a

when

substantial volume of read¬

a

this month, several groups of small loan

open

which I have
really
do
not

techniques

discussing

riod

of the

System opened its first small loan office.

years ago

makes available

come

of the first
company

Sea of Reserves"

a

conflicting

market

passage

original

companies under the same management as the present

of

.

.

.

BENEFICIAL loan is for a beneficial purpose

a

take issue

off pretty well

And those who have been

persuaded to support this position
are

that

comforted

present

changed
becomes

policies
until

by

time

apparent;
are

to

time

superseded

the

statement

practices

at any

such

be
as

if

can

be

the need

that present
followed only
thev

may

be

modified by further
the Federal Open Mar¬

action




Beneficial Loan

surdum; I wouldn't suggest it.

The

shortly alter the

years ago,

Uniform Small Loan Law, the

groups cf banks in order

or

affect

out

Forty

mar¬

and

or

funds, so large that his action of
necessarily affected ket Committee.
The tendency has
the
anticipations and actions of been and
is. however, to fix these
everyone else in the market, could
user

TmwcMaJyj

and

have, and will continue obscures

to have for

our

market

stead of st.-ymg away

times.

we

that

the next step gnd, instead of deal¬
ing
in
the
"nearest
thing
to
money," deal in money itself? In¬

lation to debt management.
This
will .continue to be the situation
a

be

that hypothesis. If we
going that far, why not take

are

general

in

may

myself to

to and does take account of
possible actions by the Treasury
with
respect
to
debt
manage¬
ment and of credit policy in re¬
,

money

It

enough

other markets, to solve this prob¬
lem for us automatically now, but

reserve

has

markets

borrowers

possible action by the
Federal Reserve System to alter
the

is

ea/v

JJt

pa¬

all

fluidity in
the Government security market,

and

action

40th

circumstances

maturities.

a
free market in ket directly?
credit, at least since Treasury bills

Federal

the

mind.

of

the

markets"

"free

as

ap¬

always

was

permeate

and

contents

was

the question of how fast, and how

all

the

open

Treasury

label

or

days.

to

in

then, however, there

there

test

the

to the discount, rediscount
purchase of "self liquidating"
prime
commercial
paper.
Even

and

kets," "avoidance of price peg¬
ging," and dealing in the "nearest
thing to money" are examnles. I
like
the"
appearance
and
the

*>,

rfi ;"V»

central

a

applied

t'^eorv

that

to

in

earlier

onerations

admit, though, that some
attractive laoe.i.s nave ueeu

these labels,

of

was

put on |he bottle from which we
are
now
drinking.
"Free mar¬

of

pattern

only

throwback to

concept

bills tHs

per

sound

fixed

a

'dealing

it

market

well,

I must
very

our

operations in such short-term

Phrases That Attract Us

i

impose

a

Before

plied

the

to

Finally,

and

whether

that

think,

"nearest thing to money" is some¬

mands and objectives of monetary

should

I

of prices and yields on the market.

banking

be

in

appropriate

intervention in the market should

policy. The need for such action
may
be infrequent, but I ques¬
tion

agreed,

thing of

markets,

operations

be

effective. Almost every¬

more

one

would

to

me

when

other

temoorarilv,

capital

and

money

times

practices

as

permanent

rules

of

Beneficial
A

Building, Wilmington, Delaware
'

,

Subsidiary Loan Companies:
Company
Inc.

.

.

.

.

.

! Lincoln Loan Corporation

Beneficial Finance Co.
Loan

I

■

.

Personal Finance Company

and

.

.

.

.

.

.

...

Commonwealth Loan

Workingmen's Loan Association,

Consumers Credit Company

Savings Society of Detroit

.

.

.

Provident

t*-

tJffi

32

The Commercial and Financial Chronicle.Thursday, May 13,

(2120)

1954

desirable objectives and create a
better situation for them as well
ourselves.

as

Securities Salesman's Corner

for most investment salesmen can

summed

be

who

either through

Clientele Building

denominator

your

common

a

between your

lationship—then develop business
along the lines that will satisfy
needs of the client. Don't try

the securities of Missouri Pacific.

to friendship and a pleasant re-

to force the issue—don't peddle—
■

.

,

don t pressure—build clients, and
make friends.

$100,000,000 Connecticut Expressway Bonds
Bought by Lehman Brothers-First Boston Group

invest¬

ties and are familiar with

ment

Advertisements

procedure.

Initial Financing for

should
offer information regarding speci¬
fic investments, and should con¬
directed toward this group

tain
for
sor

The
ine

replies.
replies.

of
ui

puipu&e
purpose

inin-

man

should

be

ton Corporation offered for pub- & Co., Inc.; Halsey, Stuart & Co.
nc

tne

Y°u*

at

Clients

from

and

People

are

the pleasure

have

will

of

Here

approach

fore you can

client

tive

on

„

,

income,

York

New

the

funds,

^mutual

Stock Exchange monthly payment

plans, systematic periodic invest*ng for educational or retirement
plans, should always contain a
reply space or coupon that can be

the

first

of

& Co.; C. J. Devine & Co.; Eastman, Dillon & Co.; Equitable Securities Corporation; Glore, Forgan & Co.; Kuhn, Loeb & Co.; La-

series

bonds

,

Greenwich to

the Rhode Island State line at
Killingly, a distance of 129 miles,
The $100,000,000 first series bonds
are part 0f a t0tal
authorized is-

of $398,000,000 approved

sue

by

John

Lodge and the
other members of the Expressway
Governor

The authorized

gond Committee.
}ssue

makes

serve

fund and interest.

provision for

a

Standard Uranium Sth.
Offer Oversubscribed
A

new

stock was offered to the
public as a speculation on May 10
by Gearhart & Otis, Inc. of New
York and Crerie & Co., Houston,
mon

The stock

Texas.

$1.25 per share.
been

priced at

was

This offering has

oversubscribed

the

and

books closed,

A

headed

group

Frazer

ouch information.

Revenues from tolls and conalong the Expressway
(gasoline stations, lestauiants and
sna?.k. kar?)
1?°fe ™an
sufficient, it is estimated, to covei

cessions

doing things in your town are
likely to be interested in invest¬
ments. Estates that are probated
will sometimes be worth follow¬

accountants
can
be a source of prospective
clients—you can "send them busi*iess and
they can reciprocate in
and
„

One director in

or

bank

a

other

be

can

contacts

a

the

company,

of

source

his follow
/I
-PviirtM/Iri
a
directors and friends. Again, you
must have a meeting ground, a
point of interest that you can use
as an introduction to people who
may be worthwhile clients.
among

rYniv*

*■* V»

One of the best salesmen I
knew told

me

that

ttaii

ever

his life he

in

interest

and

principal
on

People in the News: Those who
are

.

.

is
is

was
ox
of

one

worth $500 to him.

be used for bond pay
event the revenues

in the

ments

tolls

from

and^^rentals
and^ the
are insufficient for
_

fund

reserve

coverage.

The

and

Charles

xne
the

weanmesi
wealthiest

in
in

men

veloped

enterprises

several

that

Proceeds from the public sale
of the stock will be used for construction of a surface plant and
dbe purchase of

mining and trucking equipment in the amount of
$176,600, as well as the payment
of
$450,000 to present lease

holders

as required by the puroption held by the CQm_
The balance will be re-

chase
pany.

,

will

Expressway

it holds lease options in the Colorado plateau area of Utah.
,

run

served for operating

expenses

and

through or near such communities as Greenwich, Stamford. Darien
Norwalk, Westport, Fair-

contingencies and general funds.

field, Bridgeport, Stratford, Milford, West Haven, New Haven
H
T O H Ci 0 lfl
\JS6 OT LllG P iX"
and New London.
Use
of the Exwill enable
enable
pressway
will
cars and
pressway
trucks traveling between New
iT;Lr
York and such points as New
Haven, Providence and Boston to
save consi<ieralale time as c<5 -

mjning

niPIX/

S3 H

.

j

,

•

.

.

,

Par^d wdh

,

„

^

hfihwav

i

'

Vviii rp~

xiS Sft'ir

He

this country today and he has de-

Gasoline

all bonds when due.

taxes may

figured that each contact that he
made

payments

ron

he\e
thealong
110w serious tiaftic con¬
ge ti
Route U S 1.
gestion

rrke

,

Expressway
Expressway

will

have

standard
tion

to

known
^

1

1

and

TTtnh
Utah.

15

an

op-

unpatented

claims, 14 of which are
the "Big Buck" claims

as

Qne

near

Uranium has

purchase

_

_

ag

J 1

^

t LIT

11

_

tn

the <(jdle Da

Moabi in San Juan

1%

"I

•

„ claim

Countv;

Thp^p
ariinin
These Haim*
claims adjoin

the Mi
Mi

doing things that
No

where

matter

meets

constructive.

he

travels

he

people. Out of these broad

contacts

he has

«Dnorturiitie<;
opportunities
own

are

tuncts,

point to
Bituations

opened

nas

capitalize
that

many

invp<?tins?
investing

for
tor

ana

up

made

on

have

/




the

hi*
his

it

a

many

developed,

tl0ns and
The

cents at two.

Expressway

will

connect

with the New England Thruway
of the New York State Thruway
Authority to bring traffic from
Greenwkh

into

the

^ew York Authority

Bronx

recently

The
an-

nounced its intention to sell bonds

on or

about June 1 to build the

John J. O'Brien Admits
CHICAGOL 111.—John J. O'Brien

& Co., 231 South La Salle Street,
New York and
Midwest Stock Exchanges, on
May 20 will admit David S.

O'Brien to partnership.

the

of

present

it is pro¬

arrears

posed to issue $140 face value of
1%

a

Income Debentures witk

5%

new

sinking fund, and $60 par

value

of

a

5% prefer^

This

would also

carry

ential dividend.

stock,

"A"

Class

new

which would

contingent sinking fund,
present common would re¬

carry

The

a

ceive share-for-share in

new com¬

Here again many

amount

that instead of

ferred

issue

5% Pre¬

a new

there

would

be

is¬

mon.

would

and

would

mean

a

taxes, and the old com¬
would participate to the ex¬

mon

tent

of

"B"

one

share

of

for

each

common

Class

new

shares

20

Fixed

charges under the
promise plan would be the
earlier

the

under

as

com¬
same

examiners'

at around $15.1 million
Contingent interest, how¬
would be boosted to $11.6

proposal
a

year.

ever,

t

Income De-

new

issue.

Sinking fund
charges would, also be higher than
proposed earlier, being raised to
three-quarters of one percent on
e n

u r e

First Mortgage and Gen¬

new

eral Mortgage bonds.
to

come

So

far

of

this

This would
million annually.

$3.3

as

is

known

at

the

time

writing the capital fund,
designed to provide for additions
betterments

and

would remain the
examiners'

the

to

property,
in

the

This would

re¬

same

plan.

as

roundly $7 million

quire

year'

a

Thus,

Class "A"

new

com¬

to
to

$37 million. This is just about
$1 million more than was reported
available for charges before Fed¬
eral

income

taxes

by the System
companies for the 12 months
ended

Feb.

28, 1954.

Even figur¬

ing before the sinking and capital
funds, and allowing for no Fed¬
eral income tax liability, earnings
on the
proposed Class "A" com¬
mon
would have come to
only
$4.90

the

share for

a

12

months

through February last. Many an¬
alysts consider this proposed capi¬
talization, particularly with its
top-heavy debt structure, unrea¬
sonably high. Total requirements
coming ahead of the
common
stocks, exclusively of income
taxes, would be some $2.2 million
year higher than those proposed
by the examiners. This is some¬
a

less

what

the

than

theoretical

saving in Federal income taxes to
be

realized

by

substituting

Debentures

stock in the
Also

new

last

for

Preferred

capitalization.

week,

market

In¬

but

stir,

causing

the an¬
nouncement
that
preferred
and
common
stockholder representa¬
tives

substantial

plan of recapi¬
talization
designed to eliminate
the
large preferred
arrears
of
Missouri

from

-

fered

on

a

Kansas

-

Texas.

Aside

apparently minor tech¬
nical considerations, actual sub¬
mission of the plan is being held
up pending final determination of
some

& Gas Co.

value) at $2

column

on

the

April 15.

Senate,

be

($1

used

purchase

to

Pawnee:
stock

share.

per

Oklahoma

tional

of

common

will

Proceeds
company

by the
the addi¬
which

interests

it has under

option. The balance,
together with available current
income, will be used to drill de¬
velopment wells on offset loca¬
tions recommended by the com¬
pany's consulting geologist and to
drill wells required by lease ex¬
pirations.
The

company has 252,110 com¬
shares outstanding, its only
capitalization, after giving effect
to the current financing.

mon

Sales

during the 12 months31, 1954, from the

March

ended

interests

which the company hasacquired, amounted to about 7,361

barrels of

worth $20,432,
period sale from.
the interests under option to the

net

the

amounted
Oil

Pawnee

leasehold

of

net

gross

net

&

Gas

interests

693%

631

7,152

to

net

worth $20,177.

barrels

or

oil

same

company

acres

owns-

2,430 gross*
in Oklahoma,

acres

approximately

or

in

Co.

in

Texas

and

a

56..
spread;

15,638 full leasehold acres on>

the

eastern

of

holds

and

southern

Williston

the

flanks-

also

It

Basin.

option, exercisable on or

an

before

July

1954, to purchase

1,

additional interest in certain Ok¬
lahoma leases
will

which, if exercised,,
its

increase

acreage

867 %

net

Oklahoma

693%

from

net

net

ta

acres

acres.

Arthur Rodger Retires
Arthur

T.

«

Vice-Presi¬
dent of First Securities Company
of Chicago, who has been in the
investment

Rodger,

business

La

on

Street for the past 35 years,

of

which

in

his

time

own

as

firm,

Salle

most

senior

partner
announced his

retirement from business here om

May 7 and/his departure to take
up permanent residence in Fort

Lauderdale, Florida.

New Jos. Walker Branch
SUFFERN, N. Y. — Joseph;
& Sons, members of the

Walker

New York

Stock

announced

the opening

branch

York,

in this

If the House

bill is adopted by

which

is

generally

considered unlikely, the proposed

Exchange, have
of a newSuffern, New~
under the management of
office

in

Alonzo B. Sherow.

With Channer Securities

the fate of certain sections of the

version of the

shares

149,500

Oil
par

was

have reached

agreement

top-heavy capital

Common Stk. Offered

of which

is allocated
the old preferred, would come
most

mon,

now

S. D. Fuller & Co. and Vermilye
Brothers on May 11 jointly of¬

For

total charges ranking

ahead of the

double the
outstanding,

about

a

Pawnee Oil & Gas

5s, which
saving in Federal

income

just

of debt

provide

structure.

sued Income Debenture

Federal tax bill discussed

members of the

with

it

In general,
it fairly closely follows the pat¬
tern set by the examiners in their
proposed report of a couple of
months ago.
The major changes
security groups.

develoPed by Mr. Steen. He is
known as "The Cinderella
Man" of the uranium business,

an

share

each

ested

little

The option agreement on these
claims calls for T their purchase

For

preferred

resentatives of most of the inter¬

come

now

feasible.

analysts am
skeptical about the ultimate fate
of such a plan with the ICC as

It is reported

print.

yida
minG) one of the largest
producing uranium mines in the
united States and discovered and

s're'knovmIhrouehout'the6world eiSht barrier-type toll stations for by Standard Uranium at a price
Even
at
Advanced age he collection of 15 cents tolls for pas.$2'«0n0'0°b'^TafaS to be'nald
is constantly meeting people in
= ^ ^s^ sixX fn^ "inS^s? ^ Paid
•nany lines of endeavor that are
now

the bankruptcy
time this column is

by

p4an would not be considered

that the
plan has been approved by rep¬

in

by Joseph W.

(President)

Market

qualified leads among both new
investors
and those who have
"bought securities in the past. Here
again, you have a meeting point
when you receive a request for

bind.

courts

and

through 1953.

can

Attorneys

the

the

issue of 1,430,000 shares

of Standard Uranium Corp. com-

re-

There-

Commission

Commerce

trustee by the

fa

an

ing.

compromise plan of re¬
organization which will probably

million with the

b?nds ,wiu be sold ,from, A- steen <a director) formed the
securitiel tlme. to.-tlme^ t0A,S0V.eo o°S^ f corporation under Delaware laws
fn construction. G. Albert Hill, high- 0n Jan. 11 this year "for the
example of the
commissioner of the State, purposes, among others, of acof information Gfproperly
est,l,TteS thf\
fX,pr?^ay 1uiring- exploring and developing
Overfeed) that
bring you wlU be completed by late 1957.
the unanium properties" on which

......

new

so-called

Co.

"Chrmtele"on unlisted

Stock

broad outlines of the

of the

zard Freres & Co.; Merrill Lynch,
Pierce, Fenner & Beane; F. S.
Moseley & Co.; Phelps, Fenn &
Co.; R. W. Pressprich & Co.; Salomon Bros. & Hutzler; Union Securities Corporation; B. J. Van
Ingen & Co. Inc.; White, Weld &

UWlatest^^hure'offCTedb^Sle ™aini"S
f^The Biggest
America^ fte

activity followed the release

held.

from the New

line at

State

York

.

,

of

which will extend

.

_

cost

public financing
for Connecticut's projected $398,000,000 cross-state super-highway

to

such as how to increase
the advantages of certain
types of securities such as munic*pal bonds, information regarding

-ideas,

Sale

Toward

keyed

Ads

Investors:

interest

net

marks the initial

a prospec¬

Directed

The bid rep-

1999-94.

a

Inc.; Drexel & Co.; Kidder, Peabody & Co.f Harriman Ripley &
Co. Incorporated; Smith, Barney

2.8569% to the State.

favorable basis.

a

Advertising
New

resents

you

fome common

to

Joseph A. Adorno, State

bondg due

clients.

must establish
meeting ground be¬

again,

1.60%

71> $13,900,000 2%% bonds due
1972-77, $46,700,000 2%% bonds
due 1973-89 and $30,450,000 2.90%

will miss many
satisfied

relatives of

of

Treasurer, on a bid of par for
$8,950,000 2Vz% bonds due 1962-

opportunities to meet the friends
and

issue

an

prices to yield from

group by

jirise visit from someone sent to
you by a client, but unless you ask
referrals you

11

The bonds were awarded to the

sur-

a

May

on

2.90%.

not likely to
ago out of their way to send you
business
unless
you
motivate
•them to do so. Occasionally, you
UTricnds:

for

S£de

$100>000 000 Connecticut Expressway revenue and motor fuel tax
21/2% to 2.90% bonds, first series,

connecting link between
e p>
IJle whom y°u d0 not know and
Radiation

This

are

x^tment
advertising is J® se
qualified investoi». Requ
information

New England Thruway and other
comprising 250 mem- projects.
jointly by LehPrincipal members of the unBroths and The First Bos- derwriting group include:
Blyth

group

bers and managed

out

for

$398,000,000 Superhighway

A nationwide investment bank-

ing

form

request

convenient

a

continued, and

in

state

those who own securi¬

are

the

have been submitted to the Inter¬

Mail Ad¬
This type of advertis¬

ing should seek out people who
wish to fill an investment need.
There

from

many
cases
substantial, up¬
swing in better grade rail stocks
last week, the market was treated
to some speculative gyrations in

Newspaper and Direct

vertising:

Aside

pros¬

that can lead

yourself

and

pect

Of course, he has established a
reputation in his own right, and
his friendship with people in all
walks of life is something that
has been built
iifjover an active
lifetime of work. But it is thiough
people that we do things—it is
with people that we accomplish
"
'
A
' ^

community there are
many
people that have never
heard of you that would make excellent clients if you could meet
them
under
favorable
circumstances. There are certain methods that you can use to locate
these people, including:
In

Missouri Pacific and M-K-T

advertising or per¬

reference—find

sonal

(Article 3)

r

the following

in

up

simple formula: Seek out those
might become good clients,

DUTTON

By JOHN

has worked well

rule that

One

(Special to The Financial Chronicle)

MILWAUKEE, Wis.—O. Allea
Myers is with Channer Securities
Company of Chicago.
He was

formerly with Braun, Monroe &
Co.

.

.

_

Volume 179

N

Number 5324.

.The Commercial and Financial Chronicle

Chase National Bank

Group Offering $79.2
Million City of New York 1.90% Serial Bonds

Our

Reporter

•'

Chase

associates

Bank

National

and

marketing today
(Thursday, May 13) the first pub¬
lic offering of bonds to be made
by the City of New York since
January, 1945. The offering com¬
prises
$79,200,000
1.90%
serial
bonds, dated May 15, 1954, con¬
sisting of $70,200,000 school and
hospital construction bonds, due
May 15, 1955-68, inclusive, and
are

$9,000,000 Pension Contributions
bonds, due May 15, 1955-57, inclu¬
sive.

bonds

The

priced to yield

are

0.80%

from

the

for

1955

matur¬

ity to 2.30% for the final matur¬
ity in 1968.
:
The

bonds

present

York

State

are

interest exempt

are

from

Federal

New

and

income taxes.
They
investment for savings

legal

Co.;

Sfearns

Bear,

Co.; The
Northern Trust Company; Harris
Trust and Savings Bank; Equit¬
able Securities Corporation; Drexel & Co.;
The
Philadelphia National
Bank; Blair, Rollins & Co. Incor¬
porated; Hallgarten & Co.; F, S.
Moseley & Co.; Paine, Webber,
Jackson
&
Curtis; Hemphill,
Noyes
&
Co.;
Hornblower
&
Weeks;
Schoellkopf,- Hutton &
Pomeroy, Inc.; Swiss American
Corporation; A. G.. Becker & Co.
Incorporated; Gregory & Son In¬
corporated; Hirsch & Co.; Lau¬
rence M.
Marks & Co.; Reynolds
& Co.; Chas. E. Weigold & Co. In¬
corporated; American Securities
Corporation; Bache & Co.;
The
of

&

National

Boatmen's

administrators,
guardians and others holding trust
funds

tion

banks

and

life

insurance

com¬

panies in the State of New York

investment

for

the

under

laws of the State of New York.

Associated with The Chase Na¬
Bank in the offering are:

tional

Chemical Bank & Trust

Company;

Manufacturers Trust Company; J.
P.
Morgan & Co. Incorporated;
Lehman

Brothers; Blyth & Co.,
Inc.; Lazard Freres & Co.; Barr
Brothers & Co.; R. W. Pressprich
& Co.; Merrill Lynch, Pierce, Fen&

tner

Beane;

Corporation;

Union

Securities

Goldman,

Sachs

&

Bank

Trust

&

Company;
Goodbody & Co.; Green, Ellis &
Anderson; Hayden, Miller & Co.;
Heller, Bruce & Co.; The Illinois
Company; Carl M. Loeb, Rhoades
& Co.; Wm. E. Pollock & Co., Inc.;
The
Robinson
Humphrey Com¬
pany, Inc.; Stern Brothers & Co.;
-

Stroud
Trust

&

Company Incorporated;

Company of Georgia; Wee-

den

Co.

&

The

»

•'

Incorporated,

and

expected,

were

Exchange

the

maturities of

the

of

of

the

Exchange.

Board

New

He

of

York

Gov¬

Stock

Richard

succeeds
M.

Crooks,

thre

he

e

and who

January

in

that

would

not

be available

for

renomi-

nation.
A

Governor

of

the

Ex-

change^since
1949, Mr. Scott
is

a

The

of

Witter

following nine Gov¬
elected

were

for

three-

terms:

Henry U. Harris,
of
Harris, Upham & Co.
(who
was re-elected); Jacob Bleibtreu,
Abraham & Co.; Elmer M. Bloch,
Cahill & Bloch; Robert P. Boylan,
at Wagner, Stott & Co.; Roscoe
C.
Ingalls,
Ingalls
&
Snyder;
Maynard C. Ivison, Abbott, Proctor
year

Paine;
Robert
Irving
Lundborg

F.

Total membership of the Board
is 33.

service

bility

of
in

tegrity

of

Exchange

Rutherfurd,

the

du

Pont

&

Co.;

Samuel

W.

West, of Beauchamp & West;
Lawrence
man,

Cook,

Bogert,

Dillon
of

&

the

on

That committee

the

responsi¬
public con¬

usefulness

the

Ex¬

Stock

and

1959.

With

the

subscriptions in

Jr.,

Co.;

Spencer

of




H.

East¬

Harold

Trask

&

new

H.

Co.,

money

realistic understand¬

a

Among

the

P.

Robert

of

cen¬

that allotments

$10,000, there

would

be 22%

of

increase in trading
note because investors and traders were either
was an

the so-called "free ride" type of
subscription was kept pretty much
at a minimum. This has given investors a
better
the kind of positions that
they wanted, without
tations of the new obligation

Commercial banks have

note,
also

not

the

only because it

was

attraction of being

opportunity to get
having to nush quo¬

too sharply.

up

been

the

largest buyers of the

made to order for

able

to

make

new

them, but there is

payment for the

new

obligation through crediting the tax and loan
the

new

account. This means
banks will not have to make cash
payments

security until the Government
for

the

makes

calls

on

these

money.

far

was

elected,
Chairman

1947

from

to

1951,
resigned as a Governor.
was President of the
Association of Stock Exchange
Mr.

he

Ingalls

Firms

from

1952

to

1953; Mr.
Scribner held that position from
1950 to 1951, and Mr. Ivison for¬
merly

was

Vice-President

a

of

that association.

'

•

f>:•

-

unimportant amount of turn-ins for the
were

institutions that had to take the

because there
have

them

for

was

other

no

liquidity

alternative

purposes.

lVs%

issues is

are no

The short-term market is still

plenty of demand around for these securities
indications that a change in attitude toward these

likely to take place in the foreseeable future.

Pension Funds

Draper, Scars

BOSTON, Mass.
has

Henry H.

—

connected

become

with Draper, Sears &

Co., 53 State

Street, members of the New York
and

Boston

Stock

formerly

Exchanges.

with

He

Richard

by these funds, with reports to the

effect that the last three maturities of the
2VzS have had the bulk
buying. The fact that certain holders of the long-term 2V2S
have seen fit to take profits in these bonds has
enabled the pension
funds to obtain some good sized blocks of
these securities without
having any noticeable effect upon quotations of these obligations.
of the

Wainwright Adds

now

Wain wright

connected

&

Co.,

with

60

George Washington Bridge of thepresent

Port

H.

State

state

Nebraska.

—

affiliated

Mann & Gould, members of
Boston

was

formerly with Minot, Kendall

Co., Inc.

Exchange.

New

was

1,000 people

York

every, day

Stock

visited

Exchange

that the stock market

during the
April, Keith Funston,
President, announced.

head

Lewis T.

the

Stock

than

open

last

the March

—

>

month

which

he^

Authority of Texas, various Mis¬
sissippi
Road
bonds,
Colorado*
Highway bonds, Kansas Highwaybonds, Imperial Valley Irrigation
District bonds, the Overseas High¬
way
issue in Florida and many
others.

Joins F. 1. du Pont
(Special to The Financial Chronicle)

BEVERLY

Calif.—

HILLS,

Thomas R. Peirsol, Jr. has become
affiliated
&

with Francis I.

du Pont

Co., 9640 Santa Monica Boule¬
He
was
formerly
with

vard.

Shields & Company and

Fabian &

Joins Staats Staff

•"

(Special to The Financial Chronicle)

Calif.—Francis

PASADENA,

been

Johnstone has

staff of William

R.

added to the
Staats &

East Colorado Street.

311

Co^.

He ws?r

formerly with E. F. Hutton &

Cfo.

i*

i

JJ. S. TREASURY
STATE

<

and

MUNICIPAL

Exchange

who averaged

month,

compared

average

He

of

the

Buenos

of 968—

Aires

Corporations whose officials
visited the "Big Board" last month
included the New York Telephone
Co.,

Stock

Exchange, the Spanish Minister of;
Commerce and party, a group ofj

Cerro

de Pasco, San Diego
Electric, Stauffer Chemical
and Marquette Cement Manufac¬
turing Co.
•
/
Gas &

.

Located

of

included, he said, top officials of
important U. S. corporations, the

(Special to The Financial Chkonicle)

become

issues

Other

set up include the Colorado River

SECURITIES

1,086 daily

Joins Mann & Gould

has

Au¬

Public

pension funds.

These visitors

Stock'Exchanges.

SALEM, Mass.

York

New

represented by the Con¬
Power District of

now

some rather sizable trades
having been made in this
There has been and still are
buyers around for the longest
Government obligation, but it has not been
easy to get those that
own them to consider either a
switch or a sale. It is reported that
the 3V^s which have come into the
market recently have come from

with

Thornburn

of

bond.

More

Street, members of the New York
Boston

of the

up

thority. He set up all the financial
aspects of the power projects that

recently, with

the
Ockers is

' the-

represented

setting

Lincoln Tunnel issue and the first

„

.

also

A. in the

Taking Long Bonds

More Than 1,000
Visitors at NYSE

(Special to The Financial Chronicle)

with

P. W.

Co. and Tucker, Anthony

H. C.

and

He

sue.

J.

Co.

C.

in every State of the
Union, and for. the setting up of
the identure provisions such
as*
the flow of funds, rate covenants,
maturity schedules, etc., of such
projects as the first issue of the*
Pennsylvania Turnpike Authority,
the
original issue of the Triborough
Bridge Authority, tfc^*:
subsequent Mid-town Tunnel is¬

Co.

Pension funds, both the public and
private varieties, have been
quite active in not only the more distant
maturities, but also in the
1%% note, in the later obligation,
however, in a much smaller
way than in the longer maturities.
Nearly all of the long 21/2S have
been given some consideration

to the Re¬

findings of over 100 field ex¬
investigating municipal

The so-called "museum piece," the
31/4% due 5/15/78-83, ac¬
cording to advices, has come to life again on a couple of occasions

(Special to The Financial Chronicle)

Barnard

later transferred

projects

certificates.

year

very active one with

and there

a3
the

■

lV8s not only
but because they had to
one

of

aminers

While the 1%% obligation has been the center of attraction
as
the recent operation of the
Treasury is concerned, there was

3!/4S of 1978-83 in Demand

With

the

as

not

a

1

capacity

construction Finance Corporation.
He was responsible for reviewing,

sumers

ing obligations. There have been reports that a certain amount of
maturity shortening has been done, through switching from the
more distant
obligations into the four-year nine-months issue. It
is indicated that profits are
being taken in some of the longer-term
2V2s with the proceeds being put to work in the l%s of
February
1959. On the other hand, there has been a
considerable amount of
maturity lengthening also reported, with certain of the short-term
issues being sold ill order to make
way for the four-year ninemonths note.

his

Examiner

Works
Administration,,
during the years of 1933-42, was*
responsible for the setting up of
over $3,000,000,000 worth of bonft
issues purchased by the P. W. A.
Practically all of these bonds*

are

A substantial amount of the
activity in the new 1%% obliga¬
tion is now being attributed to switches from
the older outstand¬

Governors

Boylan

Board

the

when

&

;

issue, namely the l7/8s due Feb. 15,

announcement
excess

market is still

in

Finance

Public

activity in the new
letting out or rounding off positions. The four-year nine-months
obligation, according to reports, has been very well taken by in¬
vestors, principally the commercial banks.
To be sure, there was a certain amount
of the quick turn
variety of operation in the new 1%% issue, but it is indicated that

in¬

Exchange.

BOSTON, Mass.—Maurice H. G.

1955

Nominating
Committee were the following
members
of
the
Exchange:
'Stephen A. Koshland, of Carl M.
:Loeb, Rhoades & Co.; Joseph A.
Martin, Jr., of Gaines & Co.;
Richard H. Moeller, of Schitmer,
Atherton & Co.; Clarence Southwood, of H. N. Whitney, Goad by
& Co.; John J. Trask, of Francis
I.

of

Committee

and intensive
operations of the Stock Exchange
in the field of public relations.

,,

.

.

as

of

expanded

present

K. Starkweather, of Starkweather

Elected

Chief

result of this

a

country.

Welsh,

were

Activity and interest in the Government
tered around the

a

of

Mr.

Free Riders at Minimum

credited with having initiated the

John Rutherfurd & Co., and John

& Co.

May,

members—were

John

As

Bond

out the

The Treasury has extended
large number of securities that were needed by

limiting of the liquidity issues, competition for the available ones
has increased very markedly. This has
brought the yield on nearterm obligations, which are
necessary for liquidity purposes, down
very sharply.. •
v. >'•' ■vx

There

&

deceased

in

President of the

with

the

It fostered

of

buyers of this security even though
as much, if not more interested

were

certificate.

the commercial banks for short-term
purposes.

ing by the public of the risks and
rewards of stock ownership. That
committee generally has been

Buck &

reelected:

as

increasing

fidence

benefits

of

Pres¬

appointment

Chairman

as

The following Trustees of the
Cratuity Fund—which pays death

Stock

Scnram

the

charged

was

was

families

as

Exchange in September, 1951,
Mr. Scott rendered distinguished

Mulvany,
Co.
(San

&

Francisco); Joseph M. Scribner,
Singer, Deane & Scribner (Pitts¬
burgh); John O. Stubbs, F. S.
Moseley & Co. (Boston).

to

Emil

Keith Funston

partner

in the firm

Dean

and Co.

and

Public Relations.

the

announced

ernors

of

1950,

office

years

Harold W. Scott

ident

change's Advisory

for

Exchange, in their Munici¬
Department, where he
will specialize in the origination
of Revenue bond issues through¬

Profit-Taking in Long 2V2S

who held that

past

a

Stock

pal

Ralph Hornblower, of Horn-

Between the retirement

Elects Harold Scott
ernors

1V8%

one-year

blower & Weeks.

Harold W. Scott has been elected
Chairman

the largest

certain of these institutions

institutions

NY Stock

Administration and Federal Works*

Agency, has joined Ira Haupt &
Co., Ill Broadway, New York
City, members of the New York

nine-months note of 22%
was, however, slightly higher than what
had been expected in the financial district. The new
note has been
very well received because it was designed to meet the needs
of the current money market. ■? Commercial
banks, as was to be

in

E. Welsh, former Chie?
Examiner, Public Works

Finance

recent

for
and

Floyd

=====

Government

that the commercial

others.

r

-

*

By JOHN T. CHIPPENDALE, JR.

market is assimulating the new
securities,
especially the l7/8% due Feb. 15, 1959, which came abo,ut in the
Treasury financing.
Allotments in the new four-year
-

Bank

St.

Louis; Central Republic
Company Incorporated; City Na¬
tional Bank & Trust Co., Kansas
City, Mo.; Commerce Trust Com¬
pany, Kansas City, Mo.; Federa¬

and for executors,

i

Floyd Welsh Joins
I
Ira Haupt & Co.

Governments

on
.

The

325

(2121)

on

the

second

floor of

20

Broad Street, the Exchange's
Reception and Exhibition Head¬
quarters are open from 10:00 a.m.
3:30

to

Monday-through-

p.m.

Friday.
Visitors

action;

see

'

Sc Go.

the stock market in

animated

exhibits

INCORPORATE®

spon¬
"

sored
on

15 BROAD

by leading companies listed

the

Exchange,

and

view

-

the

leading German bankers, a mem«i Exchange's 12-minute Technicolor
ber of the Iranian Parliament, sr»
motion picture, "What Makes Us
noted
German journalist
and
in New York's most in¬
the winner of the Bermuda Lily Tick,"
Contest.

AtJBBEY G. LAN8TOW

.

.

ST., NEW YORK i

WHitehall 3-1200

^

.

Ul So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON f

r

ST 2-9490

timate theatre.

\

•

HA 6-644S

34

The Commercial and Financial Chronicle...

(2122)

Continued

from jirst

A MUTUAL INVESTMENT FUND

page

decline

which

middle

of

most

NATIONAL

Utilities and Oils Favored

SECURITIES

By Funds in First Quarter
and

WRITE FOR

aviation

FOLDER AND

PROSPECTUS

stocks.

CORPORATION

Established 1930

120 Broadway, New York 5, New York

in

trend

the tobacco

NATIONAL SECURITIES &

There

the

and there

group

was

chemical

was

Wellington

Fund, which had been the heaviest
of

1954

before

the

severe

in

total of

$800,000 in both the com¬
mon
and preferred of Reynolds.
Over-all opinion on Reynolds,
however, was divided during the
quarter under review.

tolaling 11,200 shares—in¬
cluding Wellington's—were offset
by three sales. American Tobacco
the

was

U. S. mutual investment company offer-

to*

i diversified investment in common
stocks of corporations selected on the

;

basis of possible participation in Canada's
free

a

booklet-prospectus contain¬

ing the facts, send this advertisement to
•ny

group,

lightened

investment dealer

or

CALVIN

BULLOCK

One Wall Street
me a

in

free booklet-prospectus

Canadian Fund.

Name.
Address.

two

in

41,900
four

for

been

the

ORGANIZED

that

the

fact,

1949

economy

as

the

was

contraction,
is using

is
up

NEW YORK

Bullish

Policy

This disposition

Reflections

not to retrench

before

crease

by.

gone

Because

favorable

other

period

that,

the

power group

be¬

ter

portfolios during
the fact

funds

many

chips

con¬

run-of-the-

so-called

on

blue

pale

and

blue

chips, others are not adverse to
going off beaten paths in search
for investment values. Noteworthy
in
this
respect have been
the

which

their

accompany

P.

"A"

acquired

Cement

Selected
President, ex¬
surprise at the buoyant
Rubin,

and

Pulp
Co.

in

Street

valuable.

In

possibility that
pending in Con¬

a

lighten so-called 'dou¬

may

of corporate income.

of

reinvigorating individual initi¬

familiar issues

other

first time

which

the start of
have made dividends and

now

Investment

tional

Shares

Southern

spurred

to

offering;

the

funds

group, see

boards

the

in

of

tne

Seligman

real danger in the

any

current

Randolph,

business

"Developments

of

"retraction":
months

recent

Pioneer

and

Corp.

Na¬

the Lehman

a

Edison,
large degree by an
the favorite in the

most

popular issue and California

Edison had shared third rank with
other

utilities.

American

-°1ro

wa s

pv+^p^eiy

well-liked during the quarter un¬
der

review,

nine

managements

purchasing 20,300 shares, four
making initial commitments.
Three

offsetting sales totaled 4,350

shares.

Another West Coast

com¬

about 20% of its holdings on Dec.

do

31, last) while American Business

that the contraction will not have

Pacific

Shares

the

added to six portfolios and newly
committed to another. Two sales

holding

speed

better

prepared

fluence

had

The

government

to

exert

its

is
in¬

against

purchased $1 million of Canadian

business and

debt

are

issues

previous view

our

or

1937-38.

of

the 314%

—

Scudder

change

severity of that
which took place in the recession

million.

1978-83.

not

contraction, and
the consuming public

quarter and Boston Fund acquired

generally in good shape finan¬
cially.
Thus, even though the

the

trend of

same

during

amount of

the

previous

City of Mont¬

activity may continue to

real 3%s currently. Preference for

be downward for

short-term

as

is

at

paper

illustrated

the

by

acquisition

present

Delaware

of

time, 1954
yvhole is likely to be a com¬
paratively good business year."
the

of commercial paper as well as In¬

porated

vestors Mutuals'

mistic

holding of almost

$8 million.

However, there

was

no

notice¬

management

Investors
than

the

qver

Devens,

able rush for cash and equivalents

American

during the preceding
December
quarter,
still
lacked
buying interest, five managements
disposing of 31,015 shares, three
selling their entire commitments.
Also

unpopular,

funds,

with

each

General

were

Three

of

four

Telephone,

Indiana

and

Southwest

and

Corp;
disposed of

managements

Delaware Power and Light, Kan¬
sas
Power and Light, New York
Gas and

and

Union..

West¬

:

;

Popular Oils
Louisiana Land and Exploration
received
major
attention
from

bullish

managements

the

on

oils

during the period. In the last three
third

of

1953,
with

along

troleum

stocks

tember

had

it

had ranked
other pe¬

it

five

while

still earlier quarter

during

the

ending in Sep¬

been

popular issue.

second

most

Additions of 40,300

shares

were

folios,

half

initial

commitments.

added

to

the

lead

pany

Gas

utility

and

Electric

equaled 11.500 shares.
acquired
Penn

posed of

a

while

block of

as

was

Five trusts

shares

20,767

Electric

parade

of

West

another

dis¬

shares.

1,000

Power and light

chased
were

by

issues, each pur¬
three
managements,

Commonwealth

Florida Power

Edison,

Corp., Kansas Gas

totaled

sale of

made'to

eight port¬

of which

represented
Cities

Serv¬

three others.

Purchases

21,800 -shares,

offset

by

lone block of 665 shares.

a

Socony Vacuum and Standard Oil
of New

Jersey

were

each acquired

by six managements, purchases of
the former
and

equaling 26,300 shares

30,437

Co.

the

of

trusts added

Five

Phillips

bought

been the least popular

issue in the

favorite

latter.

36,700 shares of Texas

four

and

which had

previous quarter. The

of

the

previous

period,

Amerada, currently appeared

purchase

new

and

an

as

total

of

Standard
each

a

sold.

Selling

A
ac¬

Skelly and

Indiana

was

also

were

three

by

third.
were

small block of

one

bought

ments.

to

shares

was

of

as a

portfolios

two

addition

shares

100

in

10,400

while

quired

is

this

of

more

when

signature

President,

Parker, Chairman:

Incor¬

it

opti¬

and

Electric, Montana Power and

New England

Electric System.

portion of the increases

in

A

three

slight evidence of

manage¬

scattered with

any

concentra¬

tion. Four trusts sold 20,400
of

Gulf,

shares

of which had been

some

states

of

Charles

and

William

Affiliated

"The business

PORTLAND

HARTFORD

10,500 shares.

Electric, most unwanted

a

But

$250,000

some

the

was

the electric

and light group during the
ice, upon which opinion had been
period, 13 i'unds acquiring a total
fairly well divided in the previous
of 134,600 shares, six making new
three months, increased in volume
purchases. In the previous quarter
in four portfolios and was newly
Florida Power Corp. had been the

$5%

Francis

of

Utilities

in the group

power

several

does

State

California

was

der| review. Thus, Boston Fund sold

by

of

and

months

by

Corp.

Telephone

come."
Nor

the

Corp. and

Natural Gas added by

Chairman

sufficient explanation

a

rise

for

Aztec Oil and Gas

acquired

was

appear¬

portfolios

were

to

are

Dragon
Beryllium
Corp.

Manufacturing,
Hudson
Paper (the "A" stock)
Paper

Less

ing

stock market: "Tax reductions that

more

in

sister, Axe-Hough"B," purchased the stocks of

Sheller

have taken place since
income

shares

and

lanced funds lightened holdings of
debt issues during the quarter un-

balance

block
Gas

Central

and Minnesota and Ontario

Shares

of

one-for-ten

seven

Public, Service

managed by E. W. Axe and
During the first three months
this year Axe-Houghton Fund

several

on

1954,

Co.

that has taken place
prices, and a reason for
intelligent hope for better things

lightened

of

funds

stock

(representing

in

accentuate

although

centrate
mill

in

$750,000

South

ern

opinions of several fund manage¬

nine

exercise

least popular stock in

State Electric

interesting
quote

an

an answer, we

of

in part stim¬

'■

Middle

management

Newcomers to

the

stocks, it is inter¬
esting to observe that several bai-

sold

basis.r

ton

poses

holdings
were

through the
issued on
a

while its twin

business,

con¬

during the first quary
trusts selling a
lieves that an upturn in business total of 56,700 shares, two elimi¬
is probable well before the end nating the issue from their hold¬
of the year."
ings. Another company bought a

the market

Wide

factors

the

economy,

the

Nation-

months have
of this and

many

ulated

in

question. For

with adequate credit at low rates,
and the broad national program

million of seniors, in particu¬
triple A rated bonds and

present

near

from

funds in Consumers Power and 11

of

Basic tax improvements, combined

all

resulted

preferred issue. Ad¬

the

to

piore as the market averages
pushed to new highs almost each
week, in the face of a contraction

ble taxation'

for

ditions

rights

or

of

Fund's

BOSTON

tne

Gas

and

version of the

they are being
produced. If consumption remains

ative,

time

Founded 1898

about

at

tric

at

better grade bonds reach¬
ing high prices because of mone¬
tary and credit policies, along with

government

Incorporated

com¬

the previous quarter.

pace as

Some

gress

sold.

Treasuries

Coffin & Burr

fewer

were

continued

tax revisions

block

one

purchased on balance,

addition there is

Scudder, Stevens and
Clark sold $500,000 of its long-term

National Distributor

same

other

With

$2

1931

actions

the year

in late 1953, three
38,700 shares,
of which represented an ini¬

Only

common

noted, over-all purchase trans¬

as

presses no

totaling

commitment.

three

last

portfolios of Public Service Elec¬

in Ohio Edison

Approximately

open-end

then, there

Edward

this group

tial

less

American

market

scare

half of those rated "AA."

Fund

and

entirely disposing

in

the

1953.

panies selling on balance also and,

others.

'

holdings. Over-all management
opinion, however, was apparently
well-disposed toward Lorillard as
had

but

of

quarterly statements.

balance by four man¬

two

months

ments,

of

lar

New England

the

being

portfolios,

from

on

agements,

was

Please send

of

acquisitions equalled 3,500
shares^ Liggett and Myers was

one

New York

popular

total

eliminated

purchases

Established 1894

least

Three

it

•n

a

also sold

growth.
For

Three pur¬

chases

First, get the facts about Canadian Fund—■

during

as

stock funds

However,

prices, currently had a
change of heart. During the pres¬
ent period this fund
invested a

Canada

same

one-third

break

Investing in

period. A
companies

closed-end

tinental.

part

*

the

during

also selling on balance by Select¬
ed American Shares and Tri-Con-

seller of the tobaccos in. the latter

*>

the

in

the
The

levels, it is
obvious that production must in¬

few more
increased
and retail stocks, but the tobaccos liquid assets than in
December,
and rubbers were definitely un¬
but the number of open-end funds
popular.
Investors Mutual liqui¬ adding
to
reserves
during the
dated a $6 million investment in quarter was 50% of the
total, the
decided

no

FREE INFORMATION

•

significant

case

about

continues.

goods faster than

SERIES

RESEARCH

began

1953

Thursday, May 13, 1954

Fund

BANGOR

A

Certificates of

*

Participation in

Common Stock Investment Fund
Objectives of this fund

capital

INVESTMENT

:

1

are long-term
growth
for its

income

shareholders.

Prospectus

investing their capital

.eystone

and

FUNDS

upon

request

Lord, Abbett & Co.

IN

New York X

BONDS

Chicago

—

Atlanta

Los Angeles

—

F

(Series B1-B2-B3-B4)

INCORPORATED

Custodian

PREFERRED

INVESTORS
A

mutual

diversified
securities

fund

with

a

of

portfolio
selected

STOCKS

(Series K1-K2)

for

Fund s

COMMON

STOCKS

#

EATON & HOWARD

BALANCED FU\D

STOCK FUND

| •

(Series S1-S2-S5-S4)

<E ATOIS

capital and income

**..

.
.

The
200

Parker

Corporation

Berkeley St., Boston, Mass.




Prospectus from

your

local

investment

dealer or

^Street

The

Keystone Company of Boston
50

Congress Street, Boston 9, Aiass...

/

BOSTON

.r y

&

HOWARD

'BOSTON --r'-V-5 c' 333

.•

ESTABLISHED

Prospectuses from

l!

i

INCORPORATED

•

%

&-•

'

Managed by

r

long-term growth of

Prospectus may be obtained,
from investment dealers or

v.

EATON & HOWARD

■

your

*

'

1924

Investment Dealer

Montgomery Street

SAN FRANCISCO

or

the

y

ahore.

J

w +* Ktmw

to

Volume

179

received

as

in

tion

stock

distribu¬

December

quarter.

4%

a

the

9,800 shares, one making a new
purchase; there were no sales. A
like number of trusts added 15,500

also sold Brit¬

shares

Oil.

ish American

in

of

Santa

period—as well

Purchase of the rails, on which

shares

each

18,600

shares

opinion had been divided in the
previous period, points up the ten¬
dency of many managements to
acquire groups temporarily de¬
pressed, which is in contrast to the
oft repeated charge that "mutuals
buy
the popular issues."
(The
same
might be said about pur¬
chases of agricultural equipment
shares during the current .quarter
and the preceding three months.)
Seaboard was one of the favorites
in the carrier group, as it had been
December

A total of 28,130
Nickel

and

Plate

Southern were
portfolios while

of

to

four

purchases

stock

was

di¬
vision, additions to four portfolios

these

representing

commit¬

new

Other

ferred.

quired

converted from the pre¬

companies

managements, were Brook¬

three

lyn Union Gas (12,800 shares),
Chicago Corporation (6,500shares),
Colorado
Interstate
Gas
(5,700

shares), Consolidated Natural Gas

American

Business

Shares

However, there were five
initial
portfolio commitments
group.

Axe-Heughton +"B"

$f$SfBoston Fund

j

'

Commonwealth Investment

complete absence of liquidation of

the

former

the

latter.

and

Inland,

3,900

shares

had

it

as

three

been

Net Cash & Governments

shares

39,400

purchases

with

% Dreyfus Fund
c.'Eaton
>

&

;i

5,658

!

on

page

Investment Bonds and

Com. Stks. Plus Lower

Preferred Stocks

Grade Bonds & Pfds.

Mar.

22.5

50.5

52.8

36.1

34.2

43.5

49.8

26.9

68.4

69.3

33.7

57.6

66.0

3.8

27.5

3.6

0.3

38.8

9,969

11.1

13.7

22.0

18.7

66.9

67.6

937

1.1

2.3

26.4

24.6

72.5

73.1

334

7,338
371

I

Fund

27.3

57.7

60.8

1.6

1.3

43.9

43.6

54.5

55.1

3.0 — *

3.9

14.3

14.7

82.7

81.4

31

26

16.4

22.0

29.7

24.7

53.9

53.3

8.3

4.8

24.5

27.1

67.2

68.1

41.4

52.6

53.7

'

6.2

2,077

4.9

41.2

:

1.6

23.8

21.7

74.5

76.7

20.2

23.7

28.7

51.2

51.1

36,013

39,567

12.8

12.7

29.2

25.7

58.0

61.6

193

158

4.0

3.1

41.7

40.3

54.3

56.6

270

10.2

4.5

1.4

None

88.4

95.5

'

5,572

15,033

2.2

5.7

None

None

97.8

94:3

777

386

13.9

7.0

29.7

34.8

56.4

58.2

53

13.3

10.5

17.8

13.0

68.9

71.5

94

Investors

Corp

Group Securities—Common Stock Fund
Incorporated Investors
of America

Investment Co.

Loom is—Say les Mutual Fund
Trust

Mass.

Investors

Growth

Investors

National

Securities—Stock

Clark

None

None

9.2

7.7

84.4

85.6

3,051

16.9

0.1

None

83.0

81.8

567

2.7

3.2

4.6

5.6

92.7

91.2

247

569

11.4

22.5

6.6

5.9

82.0

71.6

15,927
1,249
3,781

13.2

16.6

None

None

86.8

83.4

6.0

4.7

None

0.7

94.0

94.6

120 Broadway

40 Broad St.

4.1

2.8

1.2

0.9

94.7

96.3

New York 5, N. Y.

Boston 9, Mass.

2.0

2.1

None

None

98.0

97.9

3,120

22,148
1,118
2,993
3,975
2,749

20.9

18.4

None

None

79.1

81.6

2,876

95.8

230

397

3.1

4.2

None

None

96.9

5.0

4.8

0.2

None

94.8

95.2

6,962

79

110

3.1

3.7

11.4

13.4

85.5

82.9

3,248

12.1

11.9

None

None

87.9

2.1

§§

None

§§

97.9

8,593

3,721
§§
6,956
8,179

15,484

13,220

6.4

45.9

39.1

___

Corp._i

54.5

50.5
97.7

23.6

23.8

25.9

3.0

2.3

None

None

97.0

48.9

13.6

12.9

32.9

26.7

53.5

60.4

1.2

1.0

None

None

98.8

99.0

A Balanced

352

2,433

3,346
1,626

3.6

4.0

None

None

96.4

96.0

Mutual

25.8

22.3

10.2

11.7

64.0

66.0

Fund

1,707

,

294

237

5.7

4.1

None

None

94.3

95.9

5.285

4,961

19.5

16.7

None

None

80.5

83.3

18

34

2.5

3.8

3.7

2.6

93.8

93.6

22,789

26,093

20.8

21.9

0.1

0.1

79.1

78.0

791

839

21.3

21.1

None

None

78.7

78.9

2,446

2,545

5.0

4.6

0.8

0.7

94.2

94.7

247

154

2.2

1.2

10.4

10.9

87.4

87.9

Companies:

Express

American European Securities

*

271

336

1.2

1.4

1.3

1.2

97.5

97.4

7,860
1,051
11,823

16.2

15.3

None

None

83.8

84.7

7,764

5.2

6.4

None

None

94.8

93.6

7.5

None

2.8

86.6

89.7

15.9

2.6

1.6

80.2

82.5

0.5

15.8

14.7

84.1

84.8

I

American International
General

American Investors

,

794

General Public Service

Lehman

14,962

Corporation

Tri-Continental

Corp.

53

1,029

5,619

6,946

__

fU. S. & Foreign Securities.-.i U. S. & International Seeurities__-_-_2

10.5
17.2

2,151

2,093

National Shares Corp.__:

0.03
10.2

1

None

None

89.8

88.6

9.9

None

None

88.9

90.1

n.r

6,539

6,761

~

11.4
-

SUMMARY

•y-jp,* * Investment bonds and preferred stocks: Moody?s Aaa through
fia kr * hoods; Fitch's AAA through BB and approximate equivalents
V T for
1J

preferreds.

tjPortfolio exclusive

of

securities

in

subsidiary

or

jjj'.v associated
company.^ < if Name changed from Russell Berg Fund.
changed, frem-Nesbett Fund.,' HName changed from Republie Investors. JiDecember -figures corrected.*
5Includes Diversified
Common Stock Fund reclassified March 31, 1954; consolidated De¬
.

cember

cash, $560,000—1.4%.

Investors

on

March

31,

1954.




^Assets

of Boston

365

Wall Street Investing Corp

Adams

Distributing Corp.

97.0

None

3.0

or

Shareholders'Trust

6.0

26.6

Dealer

David L. Babson

88.1

48.1

49.6

Prospectus from your Investment

456

Sovereign Investors

Closed-End

292

Common

Shares

Street Investment

18.2

6,611

Stock Fund
Selected American

INVESTMENT
FUND

2.9

1,429

T

97.1

96.1

MUTUAL

6.7

Stock

National

1933

3.9

Mutual Investment Fund

New England Fund
Scudder,
Stevens
&

FUND

6.4

5,885

Fund

Investors

ABERDEEN

582

;

Mass.

I

2,875

Management Fund

Knickerbocker

W

726

Institutional Foundation Fund

Investors

:

428

Shares

Fundamental

WW WW

2,221
2,543

Fund

General Capital

Boston

A

Fidelity Fund

(

27.1

969

538

Eaton & Howard Stock

.

11.9

1.7

Vegh Mutual Fund

Dividend

State

65.0

25.1

Investment Co

Street Investing

Delaware

,

64.1

165

Fund

Bullock Fund

-

34.2

Stock Funds:

Broad

/

33.7

1,615

Blue Ridge Mutual Fund

de

79.1

0.8

154

Bowling Green Fund

'

65.1

75.3

1,790

_

Farnham Fund:

tfAxe-Houghton Stock Fund__
j;

60.0

14.0

15.2

2,442

Affiliated

«

9.1

15.2

319

Scuddeiy Stevens & Clark

Open-End

9.1

6.9

4,697

3,621

Wisconsin

>

25.8

372

5,559

Whitehall

62.2

11,295

George Putnam Fund

Wellington Fund
•-t

99.5

60.9

2.2

3,176

and

93.0

30.3

9.5

Nation Wide Securities

Roe

None

30.9

1,444
4,534

Stein

5.4

31.3

164

Securities—Income

'.Shareholders Trust of Boston
t

0.5
7.5

1,678

"

'<•

1.6

7.8

205

I^Mutual Fund of Boston
National

•

-■r.-Z

Fund

Mutual

50 State Street,

'

'

Investors Mutual
Johnston

8

,

Putnam Fund Distributors. Inc.

,

2,029

General Investors Trust

i

&oAton

End of
Dec.

Mar.

Dec.

26.5

,

FUND

Per Cent

End of

■

.

Ge

tyne

PUTNAM

Companies

16.1

3,452

25

rities

RIttenhouse 6-9242

37

24.7

4.1

Fully Administered Fund—Group Secu¬

General Distributor

totaling

20.4

1,188 :

',v7i'978'.r =!'/«!!«?*'?<:•-;^8*413

Balaneed-t^s

CO.

&

BLDG., PHILA. 10. PA.

of

23.0

1,164

_i._

Howard

645 LAND TITLE

offsetting

no

Percent*
■

Mar."

Dec.

8,552

request

upon

BAILEY

A.

managements

Four

Continued

months

Per Cent

———-End of
Mar.

•

6,628

Funds, Inc.^-.,-

Prospectus

CEORCE

existing holdings of the Big Steel
issue. Republic and Armco were
also well bought, seven trusts pur¬
chasing a total of 26,000 shares of

§Diversified Investment Fund—Diversi¬
fied

in

three port¬

as

There also was a

additions.

liked

was

"

_______

well

as

three

the

with

(contrasted
Bethlehem)
folio

FUND

A MUTUAL INVESTMENT

Periods December, 1953, and March, 1954

8,082

Axe-Hough ton Fund "A

INVESTORS

the

in

favorite

second

ranked

the favorite issue

Bethlehem

End of-

—:

SOVEREIGN

period, United States Steel

vious

purchase transactions equal¬
ing two and one-half times sales.

Thousands of Dollars

Dec.

43,700 shares,
purchases. Two

with

Net Cash & Governments

Open-End Balanced Funds:

of

offsetting sales totaled 1,500
shares.
Also, as during the pre¬

each bought on balance by

group,

total

a

three making new

this

in

Balance Between Gash and Investments of 62 Investment
End of Quarterly

35

Twelve managements ac¬

earlier.

of the Lone Star

A portion

ments.

were

liked issues in the natural gas

,

(2123)

(18,400 shares)
and Oklahoma
made of Natural Gas (10,400 shares). The
Rock
Island
and
Kansas
City only concentrated selling on bal¬
Southern.; Selling, in addition to ance was in Southern Natural Gas,
trusts
lightening existing
that of New York Central, was three
concentrated in eight holdings of holdings by 20,400 shares,
Southern Pacific, four of Union
Steels, also bought on balance
Pacific and three of Pennsylvania. during
the
December
quarter,
Tennessee
Gas
Transmission currently moved up in rank to
and Lone Star Gas were the best- become fifth most popular group
added

three

total of

a

of

Five being made of each and half of

quarter.

managements acquired

17,100 shares of

as

Great Northern.

.

second

Fe—also

popularity during the previous

Buying of the Depressed Rail
Group

the"

A"XTI,/'ij'V <iwpwi

wwuiwiw m*«w»i wm ffw*n«i n<

Number 5324... The Commercial and Financial Chronicle

Two managements

in

T-nmm

n

acquired by Fundamental

'

Changes in Cash Position of

Open-End Companies:

8

12

17.

10

Closed-End Companies

4

Stock

Funds

v.V-

Unchanged

29

I

Stock

Fund

Prospectuses may be obtained
from authorized dealers ot
•

22

2
7

2

2

4

24

8

<

Ripley & Co.

Incorporated

Total
29
10

National Distributor
63 Wall Street,
40ST0N

-

Totals

A Common

Harriman

Minus

Ridge

Mutual Fund, Inc.

61 Investment Companies

Plus

Funds

Balanced

Blue

61

•

New York 5, N.T.

PHILADELPHIA

•

CHICAGO

24

(9.19.9)

36

The Commercial and Financial

(2124)

Chronicle...Thursday, May 13, 1954

Changes in Common Stock Holdings of 46 Investment Management Groups
(December 31, 1953
Transactions in

Selected

more

new

shares
mm
Prospetlus from

your

which buyers

purchases

exceed sellers — or sellers exceed buyers — by two or more management groups.' Issues which
bought are in italics.
Numerals in parentheses indicate number of managements making entirely
completely eliminating the stock from their portfolios.

or

-Sold-

—Bought—

No. of

No. of

No. of

No. of

No. of

No. of

Trusts

Shares

Shares

Trusts

Trusts

Shares

10(3)

35,600

Deere

7(3)

30,000

International Harvester

dealer or

and Co

None

Auto and Auto

7,000

HI.

4(1)

20,545

Bendix

4(4)

11,900

Borg

3(3)
3(3)

15,500

8(2)

52,100

3(2)

4,200

2(1)

600

None

3(1)

Warner

Clark

8,700

Aviation
_

Equipment

Ford Motor .of

General Motors

7,000

American Smelting and Refining

2

4,500

Anaconda

Timken Roller

None

Bearing.

Briggs Mfg.

25,500

Chrysler

None

Nash-Kelvinator

None

None

Studebaker

None

None

None

None

2,770
6,300

Magma Copper
Phelps Dodge

None

5(2)

_

None

4(1)

9,700

St. Joseph Lead..

2,700

1

None

1,100
1,100

Aluminum Co. of America
Aluminum Co. of America

14,600

4

14,300

4

Climax Molybdenum
U. S. Smelting, Refin. & Mining

15,700

2(2)

20,400

2(1)

2(1)

2(1)
2(1)

None

None

None

None

None

None

None

None

3(3)
Office

44.300

7(4)

2(1)
6(5)

4(1)

1,285

4(1)

18,150

Remington Rand

None

None

4

Crown Zellerbaeh

6,600

2

2

19,100
4,700

39,700
1

2

International Business Machines

Fund

6(1)
4(3)

26,690

4(1)

5,500

Sperry Corp.

1

5,000

Douglas Aircraft

2

A

INVESTMENT

from

your

deafer

or

Lockheed

United

81,000

None

___

_

_

1

investment

Distillers

600

4,400

Marathon Corp.

1,100

4(1)

1

33,000
46,900

17,700

]5(2)

None

Rayonier
West Virginia Pulp and Paper—

None

3(2)

10,400

Amerada

1,500

2(1)

2(2)

Aztec

7,000

3(1)

6(1)
3

29,700

Standard Oil of California-

Masonite

17,000

2(1)

3(1)

42,200

Standard Oil of Indiana

11,300

2(1)

3,000

Lone

4(1)
5(1)

5,200
11,400

Star

___

7(3)

2(1)

KD

8(4)

2

4(2)

None

None

5(2)

None

None

3(1)

1,500
12,000

Cement

___

Penn-Dixie Cement1

United

States

Gypsum.

None

None

None

None

Ruberoid

None

None

Sherwin Williams

1,500

17,100

2

6,000

Diamond Alkali
Filtrol Corp.

3

4,000

Mathieson Chemical

3(2)

20,300

None

None
American Cyanamid
11,499Yj> Dow Chemical
13,900
Monsanto Chemical

financial
industrial

-

2,000

Corning Glass

1

2,000

American Can

None

SYSTEMATIC INVESTMENT

None

Works

10,000

1

700

1

2(1)

25,500

None

Oil

_

—

__

__

Texas

__

_

Pacific Coal and Oil
—

Gulf Oil

3(2)
8(3)

3(1)

8,800

4(2)

3

12,800

None

6(3)
2

Brooklyn Union Gas

6,500

Chicago

5,700

Colorado

Interstate

Consolidated

18,400

Gas

2(2)

2,200

4(2)

25,600

Lone Star Gas 4_

2

30,000

National

Hugoton Production

Fuel

Gas

__

10,400

Oklahoma Natural Gas

10,000

Shamrock Oil and

PLAN

6(3)

59,400

Pfizer

30,100

4(3)

4(2)

28,000

Tennessee Gas Transmission

INCOME PLAN

4(3)

7,100

None

None

3(2)

17,700

dealer

7,700

2(1)

30,000

2

corporation

600

6(3)

Principal Underwriter

40,500

3

15,825

Commonwealth Edison

General Time Corp

None

None

9(1)

38,220

Consumers Power 5

1(1)

2

1

3

None

3(1)

14,600

5(1)

24,200

5(1)

29,300

5

3(1)

13,200

Philco

Denver 9,

3(3)

17,000

Stromberg-Carlson

2

3,000

3(2)
2

500
i

General Electric

27,000

—-

Radio Corp.

2,500

1

Westinghonse Electric

None

Financial, Banking & Insurance

i

b

MUTUAL DISTRIBUTORS, Inc.
Baltimore

•

Kansas

11,700

Beneficial Loan Corp.___

5(2)

17,900

C. I. T. Financial

400

5(4)

Offered by

1016

2

2

C'itjr 5, Mo.

7,500

3

14,725

None

2,200

3

None

None

None

None

3

270

Guaranty Trust Co.

None

Traders Finance "A"

3,000
None

Maryland Casualty

1,500

j

2

6,785

2(1)

11,400

6(3)

22,500

Products

4(3)

3,700

4(2)
Addrus.

Otj

State.




.

2,7C0'

3

16,000

2

5,000

2(1)

27,500

2

Allis Chalmers

"

*

%

"

-V

■

-itP

»

A

-#i

t

""t

V-

i

k''

1

£

•

"r

!

!•

None
None

27,500

Public

13(6)

134,600

5(1)

20,767

Service Electric

and

Gas

Penn

Electric

1

1,000

—

\

■

2

12,000

None

American Gas and

Electric

5(3)

31,015

1

3,600
126

None

Central and Southwest Corp

45,500

Cincinnati Gas and Electric 6a__

14,000

General Telephone

—_

12,200

Kansas

10,500

Middle South Utilities_

100

Power and

Light

New

York

State

Electric &

Union Electric of Missouri

None

Washington Water Power

None

None

Western

Union

Radio
Columbia

11,900

8,700

,

—

-

«.

-

*r

-

jr. t

<*

Gas

Public Service Co. of Indiana

None

4

__

England Tel and Tel.——

None

4(3)

_

New

None

5(1)

_

__

mm

and

Telegraph-—

i>.

Broadcast'g "A" & "B"

'>

.'

-

*.

•*

1

•

1.

3(1)

2,800

4(2)

39.700

3(2)

7(2)

56,700

2

5,600

*

7,500
19,100

4(3)

8,000

2(1)

22,500

2(2)

2,000

3(2)

Amusement

Paramount Pictures Corp..
.

4(2)
2

7,658

Delaware Power and Light

.

100

•

None

t"

1 /.

5,000

Southern California Edison
West

2

11,500

'

None

.i

None

None

___

1

.

1

None

None

3(1)

2(1)

2(1)

1(1)

Pub. Service6

Indiana

None

1

3(2)

2,500

1

Pacific Gas and Electric.

1

2

4,350

1

42,800

18,300
.

None

3

1,000

7(1)

None

.

None

England Electric System..

_

Ohio Edison 6

None

'

None

None

13,100

Northern

*

I *

_

__

5,670

None

200

None

13,800

—

46,509

None

United Shoe Machinery

400

New

Equipt.

Food Machinery and Chemical,_

None

20,400

.-1

2(1)

None

Ingersoll Rand

1(1)

None

None
—

11(2)

None

39,925

None

1,500

37,000

None

Combustion Engineering

None

3(1)

None

300

_

None

None

Mead Johnson and Co

Wilcox

_

1

None

Montana Power

1

Babcock and

1

None

9,000

1

Name.

4(1)

3(2)

1

1,700

2(1)

20,400

None

None

Industrial

None

1,800

None

None

&

None

None

None

|

United Fruit

None

Kansas Gas and Electric

Kellog Company

Machinery

1

None

Florida Power Corp.-—————

1(1)
Food

None

8,100

None

None

Duquesne Light

1

Travelers Insurance

and''Distributor

PLEASE SEND ME PROSPECTUS

'

3(1)

930

4,600

2

Trimipetl Underwriter

REQUEST

L__

Fireman's Fund Ins. of San Fr. 2

None

2,800

-

None

2

None

PROSPECTUS ON

___

Connecticut General Life

24,388

American Tel. & Tel..

None

444 Sherman Street

Colorado

20,300

None

500

1(1)
None

Public Utilities

9(4)

Beckman Instruments

Motorola

2(1)

5(5)

Electrical Equipment

ftl

—

Gas

Southern Natural Gas.!

1

from

or

Management

Abbott Laboratories

None

—

—

2

upon

23,800

200

__

Gas__

Natural

3(1)

investment

1

None

3(3)

Drug Products

be obtained

1(1)

12,100

12,000

__

Corp.

22,800

your

2

Natural Gas

Merck

may

2

7,000

500

—

__

26,550

request from

None

■

4,600
40,875

None

None

15,600

None

6(1)

Smith, Kline and French

1

British American OiL

600

None

None

____

Company
Producing

Texas

1

None

1,050

Oil of New Jersey
_

1

None

5,000

_

___

Texas Gulf

None

2(1)

__

Skelly Oil
Socony Vacuum

36,700

None

10,600

Sinclair

Sunray Oil

7,500

_

__

Phillips Petroleum

Standard

2 (1 >

_

_

CAPITAL ACCUMULATION

Prospectus

2(1)

665

—__|—

Land and Exploration

30,437

None

13,600

_

Louisiana

43,700

None

None
.;

Lion Oil

5

3(2)

Emhart Mfg.

PLAN

4(1)

100

—

__

Corp

6(1)

3

2(1)

Delhi Oil

2(2)

Containers and Glass

inc.

2

8,900

_

Cities Service

'

2

None

Spencer Chemical

and

3(1)

Chemicals
2

-

None

4(2)

Armstrong Corp

2(1)

—

2(1)

6,000

2

__

_

Gas

550

___

American Radiator

1,300

__

Oil

30,700

Distillers

4(4)

2

-

__

None

2

Broadway,Camden3,N. J

fund,

7,000

Johns-Manville

__

Building Construction & Equipt.

300

2(2)

Dobeckmun Co.

None

None

48,800

None

Petroleum

Corp.Seagrams

6(4)

None

None

None

45,458
21,800
24,134
2,000
40,300
26,100
60,400
3,500
26,300

National

None

None

the undersigned.

Delaware Distributors, Inc.

__

None

__J
_

_

_

1

200

Aircraft

_

Union Bag and Paper.

None

None

Pepsi Cola

None

None

.

Beverages

request

upon

___

Aircraft

FUND
5(3)

Prospectus

1S

10,500

MUTUAL

___

Boeing Airplane

t

1

1021/2
None

___

Paper, Pulp and Printing

American Airlines

10,500
8,200

Equipment

11,400

Aviation

delaware

None
2

900

None

45,500

_

...

None

1,500

__

__

Cerro de Pasco 3__

Homestake Mining

1

___

_

None

5,050

1,000

___

None

6,000

___

__

None

2

2

_____

1

2,000

Copper

2

1

___

Thompson Products

Trusts

^

3

2,005

_

r

1(1)

___

Canada, Ltd.

'

None

Parts

No. of

of..

Shares

Metals and Mining

Selected Investments Co.
135 S. to Sail. Si., Chicaflo 3,

——Sold
No.

Agricultural Equipment

INC.

n

March 31, 1954)

managements sold than

—Bought—

american

—

.

-.j

*

..

■,

*

«■

v

'

-

4

*

_

*

__

f"*

2

4.000
None

1

None

*& />m

Number 5324

Volume 179

Sold

—Bought—•
No. of

No. of

Trusts

Shares

Shares

Trusts

5(1)

15,600

3(1)

11,500

2(2)

14,000

Denver and Rio Grande Western

5(1)

17,100

Great Northern

3(1)

4,400

Kansas

2

8,400

Louisville

4

28,130

9,800
18,600

Nashville

None

None

None

None

None

Southern

York Central

None

None

Pennsylvania Railroad

3(2)

6,500
19,000

Pacific

3(2)

$0,900

8(2)

4,000

4(3)

Union Pacific
Railroad Equipment

6,000

American Brake Shoe

4(1)

4,700

Allied

3(1)

3,600
14,400

None

None

_

Retail Trade

3(5)

Stores

Federated

500

Department

None

Lerner Stores

None

None

J. C.

200

3,800

4(1)

18,500

1

1(1)
3(2)
2(1)

5,500

3(2)

1,000

1(1)

Tires

and

Firestone

United

2,700

800

Sears R,oebuck

States

None

Rubber

General Tire and Rubber

None

None

None

2(1)

7,200

5

Steels

7(2)

39,400

Armco Steel

12(3)

43,700

Bethlehem

2

2,530

Harbison

4(1)

3,900

Inland

2(1)

11,300

Jones and

7(1)
8(5)

26,000

Republic Steel

32,700

United

None

None

Walker

Refractories—

Steel

—

Laughlin_

States

Steel

2,500
1,500

2(2)

None

None

None

None

None
700

None

None

None

2

4(3)

2,500

Cluett

3

4,400

Industrial Rayon

2(1)

9,000

American Viscose

500

Celanese Corp. of

1

38,700

3(2)

3,500

Peabody

1

Lorillard

-

900

America

that

from

opinion

reflected

the

non-ferrous

Dodge

.__

1,200

Mining and Mfg

7

3

of funds

the

example,

1

S.

Climax

Machinery and industrial equip¬
purchases

four

purchases

Balanced
Stock

Funds

Funds

Closed-End

;

_

Companies

_____

Totals

featured by
Babcock and

were

of

Wilcox totaling 3,700

shares (three
commitments)
like number of Combustion

representing
and

a

ne\y

each added to two

individual

appeared
acquisition in four port¬
favorite,

top

new

a

American

issues.

and

addition

an

the

of

additions

Cement

Sales of

distribution

new

Penn-Dixie

of

through

of

rights, Lone Star
acquired by two managements

was

without this

during
Four

Matched

11,400

While most

stimulated

were

incentive.

additional

Johns-lVTanville

Sold

two

of the latter—all

and

received

attention from the bears
or

in

Buying

one

commitments—6,000.

Companies

Bought

Molybdenum and U.

ment

shares

survey

Companies:

de¬

America,

chases of the former totaled

SUMMARY

Open-End

of

Smelting.

with

sponsored by the

61 Investment

Co.

holdings of four man¬
agements totaling 14,600 shares.
Two additions equaled 1,100
shares.
A couple of trusts each

equaled
48,800
portfolio elimination of
1,500 shares. United States Gyp¬
sum was also liked by five trusts
and Armstrong Cork by four. Pur¬

for 5.

three

Excess of Net Portfolio Purchases

Borg

two

major

as

it had

December
quarter.
30,700 shares,

the

sales

totaled

which

of

Thompson Products

individual stock. Purchases picked

from

a

third.

A couple

of

made each in Masonite

were

Policies

Toward

ALUE

Buyers
auto

favored

parts

though

in

the

was

and

auto

general,

in

Chrysler

sold,

al¬

concentrated

and

represented

Lockheed; there was no selling
Sperry was another

of this issue.

bought
on
balance, acquisitions equaling
5,500 shares. Among the transpor¬
tation companies, American
and
equipment

funds

Stude-

by

three

However, partially off-

be

these

latter

two

eral

Electric,

Radio

Westinghouse

featured

the

and

electrical

equipment

and

radio

division.

Five

sold

14,600

shares of

G.

funds

29,300

E.,

shares

of

Westing-

house and 24.200 shares

Corporation.

Radio

of

Motorola

the

was

popular

stock in the group, six
acquisitions totaling 40,500 shares;
half

of

which

purchases.
mitments

represented

new

Three initial

com¬

in

equalled

Stromberg-Carlson

17,000 shares, and there

two additional

convertible

purchases of

issuef*

preferred

balance.

While there was
over-all
group,

opinion

Safeway

favored

bal¬
to¬
tal of 26,550 shares of Merck and
a
like
number acquired
59,400
shares of Pfizer, three of the lat¬
ter
representing initial commit¬
ments. .) Three new purchases and
one
portfolio increase were also
made in Smith, Kline and French.
As
noted, marked enthusiasm
continued to be displayed for the
farm equipment issues. Ten pur¬
chases were made of Deere, three
representing initial purchases,
companies

were

Six

ance.

while

national

on

trusts purchased a

C.

Harvester.
was

I.

retail

added to five

was

portfolios, but two of these rep¬
conversion

resented

ferred

issue.

eliminated

holdings.
among the

800

from

favorites

department stores also

bought

were

of

former

Two

pre¬

management

block

a

the

of

One

balance—Allied

on

Stores and Federated Department

Stores.
mer

purchases of the for¬

Four

totaled 4,700

shares and three

Continued

on

1

38

page

•

"

Commonwealth Investment

Company

established 1932

A BALANCED

INVESTMENT FUND

Commonwealth
Stock Fund

■

A COMMON

T.

the favorite among

companies, five funds

the finance

division of

the

trusts acquired Inter¬

seven

Financial

a

in

drug

Recently offered to

ration by two.

STOCK FUND

k lor

prospectuses

acquired

was

v

the

Trust

General

were

also

insurance class.

was

the

of

Studebaker,

completely

holdings Of

removed

five

a

sixth.

group,

vious

as

it had been in the

of New York

was

three

months,

was

General

Build¬

the only

balance during the current period.
In the amusement and broadcast¬

ing group, marked preference was

22NO CONSECUTIVE DIVIDEND

displayed for Paramount Pictures

The Directors of Television-

three

one

initial

portfolio

commitments

addition

total¬

of

liquidation.

bought by four trusts
bia

Broadcasting.

Also

Colum¬

was

Purchases

Not

only

was

well divided

on

per

29,

concentrated buying

dividend of 7c

income, payable May

1954 to shareholders
record

over-all opinion

the chemicals, but

a

share from net invest¬

ment

of

equaled 11,900 shares.

issues

was

purchases

May 14, 1954.

Chester D.
May 7, 1954

^

Tripp
President

in individual

decidedly light.
were

Inc. have

Electronics Fund,

declared

135 S. LaSolU Street,

pre¬

2529 Russ

commercial bank to be bought on

man¬ ■\

The popular issue in the

/

or

liked

ing 8,700 shares with a complete

shares

be obtained from

Guaranty

absence

39,700

may

four

by

purchases

buying to offset the selling

They

ing, San Francisco 4, California.

Travelers and Con¬

But the're

no

funds.

public, Fireman's Fund of San

Francisco

three

were

agements and lightened in that of




to

maker

equaling 25,500 shares.

from

I

As had been suggested earlier in
this article, profit taking in Gen¬

qach also disposed of their

Merck,

and

of

York

Profit-Taking in Electrical

entire commitments in Pfizer and

inations.

was

DISTRIBUTORS, INC.

were

in

addition totaling 26,690 were made
in

Corp.,

which

FUND

Cyanamid

balance while opinion
on Union Carbide.

Equipment and Radio Issues

the

portfolio decreases and four elim¬

setting

Dept. D-6, 5 East 44th Street, New York 17, New

on

divided

were

in

44,300 shares of Chrysler

,

were

stocks

there

selling
baker.

VALUE LINE

American

also sold
was

Douglas and in Philco was added to three port¬
United Aircraft by five.
Boeing, folios. The
beverage stocks were
however, was bought on balance
highlighted by concentration oT
by six trusts, shares acquired to¬
five purchases in 81,000 shares of
taling 8,200.
Two sales equaled
6,600 shares. Likewise three initi¬ Pepsi-Cola. Distillers Corp. and
al commitments and one portfolio
National Distillers were sold on
managements

necticut

Motors and Parts

or

and

pronounced profit taking by four

Ruberoid.

Divergent

investment dealer

disposing of this issue. Monsanto

up
on
an
over-all basis in the
aviation group although there was

managements.

your

quarter.
Eight managements sold a total of.
40,875
shares, three completely

the

23

Prospectus and other data obtainable

in stock in the December

liked by

were

three.

dividend

a

moved
14

folio eliminations.

and

from

each

Corp,
Dow,

upon

sales

24

YORK

Filtrol

and

centered

was

Cur¬

Dia¬

were

61

29

6

INC.

Alkali

liked

funds

investment dealers

11

3

NEW

mond

two

trusts and Beneficial Loan Corpo¬

7

1

NEW YORK

by

10

12
11

FUND

rently

Also

describing these mutual investment

22

INCOME

1953.

of

buying 17,900 shares. Traders Fi¬
nance
"A" was bought by three

6

LINE

issue in the last three

months

represented port¬
1,500 shares of
Sherwin Williams were lightened
in two lists and completely re¬

Total

4

INC.

Warner

Food issues decreased somewhat

in

others.

Basis:

covers
63 investment companies, but purchases or
same management are treated as a unit.
For
companies sponsored by E. W. Axe and Company are
considered as having the weight of one manager.
Individual portfolio changes
in Loomis-Sayles Mutual Fund are not surveyed, but those of Overseas Secu¬
rities (which does not appear in the companion table) are included.

NOTE—This

sales

and

acquiring 6,300 shares,
in popularity but were still among
one
making an initial commit¬
the ten groups most favored. Buy¬
ment.
Offsetting were two small
sales equaling 900 shares.
Four ing was fairly well scattered ex¬
trusts bought a total of 9,700 shares ' cept in United Fruit, still the fa¬
of St. Joseph Lead and three pur¬ vorite issue as it had been for the
chased 7,000 shares of American last year. Six trusts bought a total
of 22,500 shares, half of which rep¬
Smelting.
Anaconda,
Cerro
de
resented initial purchases. A cou¬
Pasco, Magma Copper and Homestake Mining were each added to ple of funds also bought Kellogg
Co. and Mead Johnson on balance.
two portfolios. Selling on balance
was
concentrated
in
stock
of Sellers predominated in no one
Aluminum

the most pop¬

as

ular group

found favor with four manage¬
ments while Clark Equipment and

five funds

folios
FOOTNOTES

6

Bendix

as

18,100

5

time. Among parts manufacturers,

3

L

shares,' purchased through rights.
288 shares represent 20% stock dividend.
626 shares received as 5% stock dividend.
Part converted from preferred issue.
Part acquired through rights.
Basis: 1 for 10.
10% stock dividend equals 4,670 shares.
Stock acquired as dividend.
14,000 shares converted from preferred stock.
11,400 shares represent preferred stock converted.

ac¬

Radiator,

General

of 600

was

2(1)

None

-

Dynamics

also

quired by three trusts for the first

few

None

6a

issue,

best-liked

Canada

Ford

None

None

4

the

was

Phelps

of

increases.

None

1

41,900

Robertshaw-Fulton Controls

3

metals.

Motor

six

None

3(3)

3,000

2

previous quarter
the purchase of

in

and

24,200

18,800

2(1)

Exclusive

the

of

was

evenly divided

ments

6(4)
4(2)

4(2)

Miscellaneous

1

the

of

were

American Optical

Minnesota

pronounced
changes in attitude toward a group
more

None

8,800

2,000

^

v

the

None

3(3)

1(1)

two

Nqne

3,600
Tobacco

Liggett and Myers

by

None
11,300

Spencer, the for¬
shared honors with

which had distributed

Motors, acquisition of 52,100 shares
representing two initial commit¬

3T

and

having

Selling

portfolios. Eastern were each
bought by two
Allis Chalmers, best-liked of the
trusts.
group in the December, 1953 peBuying of drug stocks continued
ried, currently bore the brunt of at about the same
pace as during
concentrated selling.
Five trusts
the previous
1953 quarter, but
sold a total of 18,300 shares, one
over-all
selling was somewhat
eliminating
the
issue from its heavier
although predominating
holdings.
on balance in only one issue—Ab¬
Building stocks were fairly well bott Laboratories. Five manage¬
divided as a group, but there were ments eliminated
this, stock from
some concentrated purchases in a
their holdings and, although three

_

_

American

bought

Engineering equaling 2,700 shares.
liked by three
managements while Ingersoll
Rand and United Shoe Machinery

Tobaccos

3(1)

and

Refractories

Food Machinery was

Textiles
2

Laughlin

e r

each

of

One

2

2,123.2

Allegheny Ludlum

and

W al k

also

were

sold

Steel

Jones

sales.

Harbison

creases

342

Goodrich

10,900

None

21,100

Penney

Rubber

3(1)

1

None

Safeway Stores8

None

1

Stores—

By Funds in First Quarter
companies.

1

3,000

New

Southern

None

None

Railway

None

7,400

1

Mathieson

Utilities and Oils Favored

2(2)

600

Seaboard Air Line

18.000

None

Y., Chicago and St. Louis

None

2::wi

None

1,800

City Southern
and

1,300

35

page

mer

2(1)

None

from

Eastman Kodak

Railroads

Atchison, Topeka & Santa Fe
Chicago, Rock Island & Pacific—

5(1)

I

(2125)

Continued

No. of

4(1)

*tV«H|^1IVMTie«M)>

The Commercial and Financial Chronicle

...

No. of

N.

AWttM j&\

I

made

Three

each

of

Chicago 3, Illinois

:

38

The Commercial and Financial

(2126)

Continued from page

The State of Trade and

the

Funds

Three companies

selling

and

buying
matched

and

not

in

A

American
rather

the

of

three

ened

in

others.

three

opinion

the

on

Zellerbach

Crown

The

to

what seemed

of

the

steel

lists.

four

was

four

trusts

Also

sold,

were

Dobeckmun

disposed of Rayonier.

each

and

by two funds,
Co., Marathon

and

Corporation,
Pulp

West. Virginia
Selling of the

Paper.

rubbers

concentrated

was

A

the

balance, but
purchasers liked Firestone.
on

three

Central Bank for

wide

selling

dealers

a

1955,
trust

and
2%

June

mature

$40,000,000
debentures

was

be

on

before

payable

on

100%

1957

are

being

and accrued in¬

proceeds from the sale are

to be used to redeem the Central
of

bentures

2%%

Cooperatives
2%%

and

on

June

which are outstanding
respective amounts of $30,000,000 and $40,000,000, and for
lending operations.
and

The Central Bank for

Coopera¬
under Fed¬
eral law and operates under the
supervision of the Farm Credit
is incorporated

Administration, an independent
agency in the executive branch
of
the
government.
The bank
makes loans to the larger farmers'
cooperative associations and as¬
sists in financing the 12 district
banks for cooperatives.
Central
Bank

debentures

are

United States, but the government
no

either direct

liability

for

them,

of indirect.

Securities

a

A

Survey

&

at

80

Wall

Street,

Edward B. Henry

MADISON, N. C.—Chapman &
Company is engaging
rities

mand

business from

in

a

secu¬

offices here.




bakery

flours

noted

hog

the week-end.

at

values

Lard

demand

disolayed

marked

weakness

year

ago
ago

or

as

the rate

100.3%.

was

was

68.0% and

the actual weekly

Firmness in

is

factors

consumption

of

of Jan. 1, 1953.

week

entries

and

cars

or

U. S. Auto

ended

to

148,238 units and

was

2.6%

Many

Last week, the agency reported there
in this country, as against.
23,394
i

The

of

failures

and

and

prewar

Mortality

level of 281

Failures

in

ago.
up

Fourteen
as

165

occurred

to

involving liabilities of $5,000
Small

or

continued, however,

the comparable week

from 206 in the previous week
year

Week and Year Ago

206

in

in

1952

27%

when

below

the

businesses

28

but

more

but exceeded the

failed

against 25 last week.

were

with

y

r

,

gradual

126

fell
of

to

177

this size

below

liabilities

the

in

39

of

excess

a

of

year

ago.

$100,000,

Wholesale Food Price Index Continues Mild Downtrend
Continuing the mild downtrend of the previous week, the

wholesale food price
index, compiled by Dun & Bradstreet, Inc.,
dropped 1 cent last week to stand at $7.38 on May 4. This com¬
pared with $6.43 on the corresponding date a year
ago, or a rise
of 14.8%. It is still
23.8% above the pre-Korea level of $5.96.

-

,

inventory

con¬

dollar volume

of

retail

trade

in

the

period

ended

V

■

in

occurred

the

demand

children's

for

%.•,'/

>

types of women's,
prospects for May and June
many

apparel, and
Women's hosiery and handbags, as well as blouses,
dresses, moved rapidly. While a decrease was reg¬
temporary and

activity in

some lines improved, the volume
the period ended on Wednesday .of last

in

of whole¬
week

re¬

largely

unchanged from the previous week. The-total
dollar volume of ^purchases was smaller than that of a
year ago.
-

Department store sales

the

Federal

Reserve

1954 decreased 1%

on

Board's

a

country-wide basis

index

for

the

under the level of the

week

as

taken from

ended

preceding week.

May 1,
Jn the

previous week,

,

from

April 24, 1954, a decrease of 3% was reported
that of the similar week in 1953.- For the four weeks ended

May

1,

*Jan.

an,increase of 6%

1954.

was

reported.

For

the period

to May 1 \ 1954, department store sales
registered
of 3% below the corresponding period of 1953.

1

crease

of 1939.
or

trade

mained

the

casualties, those with liabilities under $5,000,

to 29 from

,

continued

a

in men's Work clothes, it was considered
by improved sales of dress clothing.

While
sale

.y

declined

1953-

from the comparable 1953 levels by the following
New .Ehgland, Midwest and Northwest—3 to -f-1;
South and Southwest +1 to
+5; East—1 to —5; Pacific Coast

offset

May 6 from 234 in the preceding week, Dun & Bradstreet, Inc., reports. Despite this dip, casualties remained con¬
when

were

estimates varied

skirts

21,949 trucks made

'

while

bales,

appeared good.

week ended

year

76,900

outstanding on
reported at 5,969,169 bales.

percentages:

men's

Business Failures Show Moderate Decline for Week

161.

to

Loans

istered

j

siderably above last

sharply

rose

volume.

£■'..%/
total

Gains

27,227 in the like 1953 week.
"Ward's" estimated Canadian plants turned out
8,434 cars and
1,870 trucks last week, against 8,956 cars and 2,012 trucks in the
preceding week and 8,670 cars and 3,319 trucks in the comparable
1953 week.
;

industrial

23

small

retailers reported

—5 to —9.

above last week's total
were

for

Wednesday p|)last week was estimated by Dun & Bradstreet,
Inc., to be from 3. to 7% below the level of a year ago. Regional

and

and

conditions

on

(revised) in the previous week

Commercial

lag in domestic mill

weather

Day, .but activity in these lines ^lid not counterbal¬

traction.

and trucks

cars

continued

favorable

the over-all decline.

ance

output.

were

April

of April 23

as

for Mother's

Output Last Week Dipped 2.6% Below Preceding
Week's 8-Month High

The preceding weekly production total of

amounted

the

of

spite of widespread promotions in many parts of the coun¬
try, consumer spending in the period ended on Wednesday ! of
last week declined as compared with both a week ago and a
year ago.
Retail;? stores scheduled white sales and special items

The automotive industry for the latest
week, ended May 7,
according to "Ward's Automotive Reports," assembled an estimated
122,431 cars, compared with 124,844 (revised) in the previous
week.

the.

over

In

Loadings Rise 3.5% Above Week Ago

corresponding 1953 week, and a decrease
13% below the corresponding week in 1952.

nervousness

Trade Volume Holds to Lower Trend of Prior

increase of 48,000,000 kwh.

the

continued

by

included

•//J

below

and

range

narrow

part of the week reflected buying and

reports

remained .in

cotton

crop

Loadings of revenue freight for the week ended May 1, 1954,
increased 21,744 cars, or 3.5% above the
preceding week, accord¬
ing to the Association of American Railroads.
Loadings totaled 647,925 cars) a decrease of 133,574 cars or
96,799

early

a

Live

further

by

which were expected to result in larger acreage than
anticipated earlier? Activity in the ten spot markets increased
with sales totaling 94,000 bales, against 73,600 a week previous
and 99,700 in the same week last year.
CCC loan repayments in

industry for the 'week ended Saturday, May 8, 1954,
kwh., according to the Edison Elec¬

Car

slow and prices

planting

The operating rate is not

the like week in 1952.

17.1%

the

stimulated

covering

Bearish

pro¬

lower than capacity in 1954. The

The current figure represents an

was

Indo-China situation.

production

based on, annual capacity

mills in the

influenced

Spot cotton prices moved irregularly in

short

1954

rather

continued
some

continued to work lower in sympathy with related products.

the

principal of the firm.

Chapman & Co. Formed

wheat

Domestic raw sugar prices were down slightly in quiet trad¬
ing., Refined prices held steady with a moderate pick-up in de¬

above the preceding week and an increase of 541,000|0C0
kwh., or
6.9% over the comparable 1953 week and 1,399,000,000 kwh. over

'

Spring

of

with 66,485 bags a year ago.

ago.

month

power

with

a

like week

1,622,000 tons.

estimated at 8,438,GOO,000

edged

is

that

that

increased

Trade

of

despite substantial price concessions by

tric Institute.

a

offices

announced

Board

week.
Cocoa moved
higher on buying influenced by, the
tightening world supply situation and new high prices paid by
Europe for West African cocoa. Speculative demand encountered
limited offerings.
Warehouse stocks of cocoa showed a further
gain to 114,353 bags, from 105,313 a week earlier, and compared

annual capacity of 124,330,410 tons as of Jan. 1, 1954.

was

Finance Limited has been formed

New York City.

week

placed at 2,262,000 tons

there

Regency Securities Opens
Regency

a

and

instrumen¬

talities of the Government of the

assumes

on

1,

in the

tives

Institute

Chicago

latter

prices for the

years.

the

de¬

debentures,

both of which mature

1954,

Steel

the

on

with

pressure

Demand for hard wheat bakery flours was very quiet.? Buy¬
ing of other bakery flours consisted of small lot replacements for
nearby needs. Roaster demand for green coffee was fairly active;
prices ended moderately higher after fluctuating unevenly during

The amount of electric energy distributed by the electric light

In¬

terest.

Bank

based

1, 1954, and
annually.
The

-

debentures of

Net

report

v

.

and

latter half of the week.

Dec.

semi

offered at

"Steel's"

r'

ago.

the past week

the result of substantial rains in im¬

as

under

were

activity

Bookings
limited

the

1%% debentures of 1955 and the
2%

half

Electric Output Extends Gains of Previous Week

both of these issues will

thereafter

69.4% (actual)

117,547,470 tons

dated

maturity.

and

comparable because capacity

1, 1954, and to mature June
These debentures are not

redeemable

Iron

percentage figures for last year are

1, 1957.
terest

American

For the

June

be

is

a

Daily average purchases of grain and soy¬
bean futures were 63,300,000 bushels, against
60,500,000 the pre¬
ceding week and 49,400,000 in the like week a year ago.

.

encouragement

year

finished with slight net losses for the week.

duction

1,
collateral

to

'•

of

source

a

and unsettled

nervous

capacity

1 xk% debentures to be dated June

to

corresponding date
were

declines in wholesale pork prices.

now

G.

and

the second

leading commodities resulted in

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 68.6% of

in

1954,

In

The industry's ingot production rate for the weeks in

Newcomb, its fiscal
agent, 31 Nassau St., New York
City, $40,000,000 collateral trust
1,

demand.

war.

further

tons and

for

donald

insatiable

an

some

moderately last week.

Granite City Steel

nation¬

securities, the Central
Cooperatives, Washing¬
ton, D. C., offered publicly yes¬
terday (May 12) through MacBank

be

to

rye

Trading

the steel industry was heralded in
when scrap prices began wobbling while
being turned out at a capacity pace in response

for the week beginning May 10, 1954, equivalent to
1,636,000 tons of ingots and steel for castings, as against 1,654,000

of recognized

group

the

show

areas

Oats and

year,

The

Cooperatives Sell
$80,000,000 Debs.
With the assistance of

pound

per

to

the daily

falling to the lowest levels for several

Co., of Granite City, 111., called back 260
employees who were laid off earlier this year, and an additional
400 employees who have been working four days a week were
put back on a five-day week. The company returned two large
open hearths to production, making five that are in use out of seven.

ening portfolios. General Tire also
sold

is

reported going into the loan.

slow pace in

ingots were

of the Korean

in

Goodrich, five managements light¬
was

an

ingot production began dropping off in line with a
reduced demand, this trade weekly relates.
Since mid-Mnrch of this year, it notes, the price composite
on steelmaking scrap has been
trending upward, yet the rate of
ingot production has been fluctuating within a narrow range,
showing no positive inclination to decline or rise sharply.
In one of those narrow fluctuations, the rate of ingot output
edged down 2 points to 67% of capacity in the week ended May 9.
Seven of 13 districts were above the national average, it continues.
Another hopeful sign is the improvement in demand for alloy
steels. Demand for alloy steel went spft last year about the close

stocks did
from adding

to

suggests

on

current

division

while Union Bag and Paper
also favored on light balance,

And

activity still

steel

the first half of last year

paper

buyers

prevent

first

total of
eliminated
and light¬

A

cf

barometer

level attained since mid-February.

a

shares
being
portfolios

13,600
from

not

this

year,

price

and the outlook for increased offerings of sur¬
plus commodity stocks held by the government. Corn showed
relative firmness despite the continued free marketing of old
surplus corn; market receipts were light and much grain was

steelmaking scrap up $1.33 over the preceding
This rise made the composite $27.33 a gross ton, highest

week.

treated

was

during

badly

quarter

of

Can

the

sharp break in wheat and erratic fluctuations in
The decline in the bread cereal was spurred by greatly

portant crop

steel-making and that barometer is scrap prices, says

price composite

sold.

were

of

function

featured by a

were

"Steel," the weekly magazine of metalworking.
In the week ended May 6, they rose enough to push "Steel's"

while American Viscose and

Celanese

4,
the

on

Grain markets

Scheduled at 68.6% of Capacity This Week

time-tested

upturn in

dustrial Rayon were liked on bal¬
ance

chief

wholesale commodity price in¬
Dun & Bradstreet, Inc. The index closed at
comparing with 275.90 a week previous, and

by

May

in

improved crop prospects

the
In¬

and

on

279.19

soybeans.

Steel Output

about

heavy

with

outlays,

decline

compiled

dex,

273.96

able declines.

While

was

Cluett Peabody

textiles,

total

its

Commodity Index Adversely Affected

Continued easiness in
further mild

there

Lerner Stores and

two sales of Penney.

were

sum

and

use

By Unsettled Grain Markets

Administration economists noted,
provide a sturdy prop under the economy Avhen other sectors, such
as
business sales and industrial production, have registered siz¬
construction

Record

portfolios and lightened in a third,
opinion on Ward was more
also sold

general

Wholesale

about

but

evenly divided.

represents the

in

year ago

Spending in the first four months increased to $10,100,000,000,
lVz% above the previous high in the like 1953 period.

Sears

eliminated from two

was

a

it stated.

shares.

3,600

latter,

Roebuck

index

foods

31

Industry

and a new high for the month, the United States
Department of Labor reported.
April expenditures gained 9%
over March, which was "about usual for this time of the
year,"

from

In First Quarter
of

of

general trend of food prices at the wholesale level.

Utilities and Oils
Favored By

Ihe

Continued from page 4

37

Chronicle...Thursday, May 13, 1954

a

de¬

Retail trade volume in New York last week showed
improve¬
over the
preceding week, but this improved tone was not

ment

attributed

to

Mother's

Day

promotions.

reflected in white goods and

was

summer

Unlooked

for

strength

furniture.

According to the Federal Reserve Board's index department
sales in New York City for the weekly period ended
May
1, 1954, registered a decrease of 2% below the like period of
last year. "In the preceding week, April
24, 1954, a decrease of
5% was reported from that of the similar week in 1953, while
store

for the four weeks ended May lr 1954. an increase of
6%
reported. For the period *Jan. 1 to May 1, 1954, no change
registered from that of the 1953 period*.
*

Comparison

Jan. 5-10 week in

period begins
1953.

with the Jan. 4-0 week in

1954

and

with

was

was

the

9

Number 5324

179

Volume

...

wi.ufk.fiM,

•

M

IMHVft MIMrtAn-WHfWWl

IRON

STEEL INSTITUTE:

AND

^ v

(percent of capacity)

steel operations

Indicated

W/ n

n w rfwr

nwiiir

j

(2127)

The following statistical tabulations cover
latest week
week

Business Activity
AMERICAN

truti J ■ H, H if*( u

The Commercial and Financial Chronicle

indications of Current

.

ft

>
May 16

or

or

month available.

month ended

Latest

Previous

Month

Year

Week

Week

Ago

Ago

68.0

*69.4

§68.6

that date,

on

(net tons)

and castings

Steel ingots

1,622,000

♦1,654,000

§1,636,000

May 16 *

^Total gas (M therms)

2,262,000

Natural

oil

Crude

•"t

INSTITUTE:

PETROLEUM

AMERICAN

•

each)—
—
Crude runs to stills—daily average (bbls.)_
ti&solirie output (bbls.)
42 gallons

*"

-'

(bbls.

of

.—

_

1
1
1

116,675,000

6,812,000

6,761,000

6,949,000

22,567,000

23,319,000

22,858,000

22,905,000

May

1

2,199,000

2,155,000

2,233,000

oil

fuel

2,532,000

May

1

9,067,000

9,418,000

10,058,000

9,942,000

May

1

7,918,000'

8,361,000

8,025,000

(bbls.)

output

Residual fuel oil output
!

—

AMERICAN' PETROLEUM

(bbls.)
fuel

Residual

at

at

—May

1

177,058,000'

—May

1
1

19,680,000

l

1
1

—_

oil

(bbls.)

at

oil

(bbls.)

at

fuel

Distillate

*>■■■'.

(bbls.)

and unfinished gasoline

Finished
Kerosene

v
.

8,457-,000

I
—■

—May
-May

—

AMERICAN RAILROADS:

ASSOCIATION OF

*

,

Domestic

179,674;000'

178,033,000

Natural

156,391,000

18,518,000

17,447,000

19,624,000

61,405,000

58,932,000

59,551,000

61,087,000

43,583,000

43,779,000

43,718,000

38,989,000

647,925

626,181

599,302

781,499

576,827

565,866

580,366

681,170

Benzol

;

CIVIL

CONSTRUCTION

ENGINEERING

ENGINEERING

—

U.

Private construction

.

construction

Public

•

and

State

May
May
— May
—May
May

construction

S.

—

.

_.

municipal

Federal

COAL
v

and lignite

coal

Bituminous

.J.--;-'-:;-

output

(tons)

consumption domestic
(barrels) ^
i_J_

r

•'

:

*.

-

—

AVERAGE

SYSTEM—1D47-4D

104,276,000

76,596,000

105,861,000

79,359,000

6

27,562,000

20,212,000

24,052,000

20,800,000

362,130,000

144,295,000

184,370,000

152,466,000

131,838,000

96,808,000

129,913,000

100,159,000

May
May

1
l

6,675,000

6,740,000

5,860,000

8,769,000

403,000

443,000

465,000

587,000

*101

103

■

Stocks

(in

output

kwh.)_.

000

(COMMERCIAL

FAILURES

.May
INDUSTRIAL)

AND

—

DUN

at

end

of

114

Finished

steel

Pig iron

(per gross

Scrap'steel
METAL

246

165

Export
Lead

refinery

Lead

Zinc

at—

at—

at

—•—

May

4.634c

4.634c

4.634c

4.376c

$56.59

$56.59

$56.59

$55.26

$27.25

$26.17

$24.50

$38.83

dwelling

Nonresidential

corporate

Other

Industrials

AVERAGE

1949

13.550c

12.300c

Telephone

10.250c

11.000c

104.66

104.83

99.84

May 11
May 11
May 11

109.42

109.42

109.79

102.13

110.88

110.70

110.88

103.13

112.19

112.19

92.01

103.80

May 11

2.50

May 11

3.13

'■iVv-'n

2.87

3.01

3.02

3.15

i:

Hospital
Other

Sewer

2.85

3.35

3.00

3.40

♦

:• v:

•

CIVIL

Total

May li

3.12

3.13

3.12

3.56

Private

May 11

3.05

3.05

3.03

3.38

Public

May 11

432.9

434.6

438.0

417.5

April
Total

---May
May
—May
-May

1
l
1

251,496

199,437

298,123

341,666

230,314

225,054

225.519

254,917

87

85

89

97

1

369,140

350,355

424,943

539,033

May

7

109.37

109.77

108.12

106.47

24
24
24
24

Apr. 24

1,007,553

789,632

876,370

866,522

$46,952,871

$36,077,922

$38,843,567

$38,550,080

1,015,148

848.921

904,939

777,027

6,940

3,733

8,213

1,008,208

845,188

896,726

11,444
765,583

$45,950,953

$37,018,635

$38,079,679

$31,423,632

390,722

283,815

322,810

233.815

390,722

322,810

251,720
251,720

217,310

363,247

258,710

319,280

STOCK SALES ON" THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS
OF MEMBERS (SHARES):

—•—

Other

Apr- YL
Apr* 17

288,390

S.

construction

figure.

St.

370

143

159

161

139

29

26

34

41

38

113

250

64
160

71

67

60

15

14'

14

62

53

72

14

12

8

$1,439,441

$952,637

$1,473,244

\

■

.

200

762,722

872,503

545,970

566,938

406,667

710,522

464,906

349,803

573,669

102,032

56,864

136,853

NEW

SERIES

—

(running bales)

&

M.

J.

16,317,126

14,954,575

QUOTATIONS )-

1,189,560

972,830

734,940

}37,410

Apr. 17

766,890

646,220

896,290

1,235,550

929,230

783,630

296,690

392.600

291,230

197,980

16,000

20,300

12,900

12,900

271,920

384,990

267,420

224,830

405,790

280,320

.....

237,730

333,723

393,193

259,705

33,600

47,100

39.040

60,190

325,083

386.016

356.877

323,010

358,683

433,116

395,917

383,200

York

1,524,852

1.970,883

1,657,253

1,192,625

222,430

294.290

214.330

210,500

1,194,060

1,320,463

1,780.166

1,391,187

1,542,593

2,074,450

1,605,517

1,404,560

(per pound)

32.863c

13.904c

12.935c

12.683c

12.735c

12.473c

£82,219

£85.250

£81.056'

HAntimony,

Louis

New

(per pound)
(per long ton)

London
York

31.970c

Boxed

Antimony

(per pound)

Antimony

(per

Platinum,

refined

pound)
(per

28.500c

bulk, Laredo—
Laredo

—_

29.000c

$84,000

ounce);

Zinc (per pouhd)—East St, Louis
ttZinc, London, prompt (per long ton)
ttZinc, London, three months (per long ton)_
tCadmium, refined (per pound)„_____

-

-

31.970c

37,970c

28.500c

34.500c

29.000c

35.000c

$90,000

$86,889

10.250c

9.637c

11.000c

£79.644

£74.258

£71.323

£78.816

£73.079

'

£72.061

$1.70000

$1.70000

tCadmium

(per

pound)___

$1.72500

$1.72500

$2.07500

SCadmium

(per

pound)——i—

$1.75000

$1.75000

$2.15000

$2.60000

$2.60000

$2.40000

85.250c

85.250c

Cobalt, 97%

New

;

York

(per ounce)—

—

ounce)____

(Check I—

Straits

York, 99%

7(6 pounds)
;
plus, ingot (per pound)

—

(per pound)-

**Nickel
Bismuth

(per

WEIGHTED

MOODY'S

Utilities

YIELD

AVERAGE

STOCKS—Month

COMMON

Industrials
Railroad

Banks

pound)

of

Amer.

Tel.

&

Tel.)

<24)

(10)

(200)

CEMENT

PORTLAND
Month

96.269c

91.833c

102.115c

(BUREAU

90.833c

101.115c

$35,000

$35,000

$35,000

$220,231

$200,444

$195,885

21.500c

21.500c

20.500c

27.000c

27.000c

27.000c

60.000c

60.000e

60.000c

$2.25

$2.25

4.86

—

5.07

5.52

6.59

6.70

6.21

4.96

5.00

5.30

4.66

4.81

4.49

3.03

3.17

3.41

4.94

5.14

5.49

16,895,000

20,215,000

OF MINES)—

of March:

(barrels)

—

18,740,000

15,202,000

20,813,000

28,906,000

27,562,000

23,865,000

83%

used

WINTER WHEAT

20,084,000

—_—

Shipments from mills (barrels)—
Stocks (at end of month—barrels)..——
Capacity

74.000

$2.81682

April:

(125)

(15);

Average

73.723

$2.81448

OF

(25i

(not inch

85.250c

73.550

$2.81824
95.269c

min
U. S. price)_—

(per flask of

99%

$2.00000

Exchange—

(pence per

(per ounce,

Production

Apr- 17
Apr- 47
Apr- 17

29.168c

£86.356

Insurance

3t>8,182

29.686c

29.520c

13.713c

100

287,920

29.902c

29.700c

l

£93.544

§§New

U. S. DEPT. OF

78%

84%

—

AND RYE—U. S.

DEPT. OF

1, 1954:
wheat—Production (000's omitted)

AGRICULTURE—As of May

>
:

May
May

110.9

109.9

100.1

100.4

100.2

99.0

105.6

105.4

105.1

104.5

farm and foods.

^Includes 616,000

—wi.—May

barrels of foreign crude runs.

-

111.0

114.6-

114.5

§Based

on

against the Jan. 1, 1953 basis of 117,547.470 tons.
orders not reported since introduction of Monthly Investment

111.1

95.0

96.5

—May

new

\

93.9

92.3

114.5

113.4

annual* capacity of 124,330,410 tons as

Winter

Rye—Production

—

707,118
19,818

677,981

877,511

17,998

tBased on the producers' quotation, tBased on the average of the
producers' and platers' quotations.
SAverage of quotation on special shapes to plater,
♦Domestic five tons or more but less than carload lot, boxed.
§§Price for tin contained.
o«Fob
Port Colborne, U. S. duty included.,
ttAverage of daily mean of bid and ask
frbm

Plan.

(000's omitted)—-—

♦Revised figure.

quotation

as




OF COMMERCE)—

5

£91.481

Gold

162,390

—

1954

Common,

7,681,300

(1947-49 —100):

commodities other than

1

'

166

ttThree months,

7,389,220

226,390

sales

tNumber of

371
"

145

ttPrompt, London (per long ton)

9,257,900

1,009,160

Apr- *7

products
foods

♦Revised

I

^

New

8,937,540

723,460

—

Processed

of Jan

(E.

Common,

10,500,110

172,830

commodities

Meats

383

49

Copper (per pound )—

10,898,240

■

AH

PRICES

3,703,310

Apr. 17
Apr. 17

of members—

Commodity Group—
Farm

886

34' '

of

__t

(.DEPT.

Magnesium ingot

Total sales

-

METAL

8,414,920

919,980

Apr- 47
Apr. 17
Apr- 17

—

Short sales

All

Month

—

municipal,,

As reported May

Aluminum,

APr-

PRICES,

and

COTTON GINNING

292,080

n,,,,,,,,,-

sales

—

NEWS-RECORD

construction

Federal

320,360

—-—.

transactions for account
purchases

LABOR

9

775
r

EN¬

—

construction

Quicksilver

Apr. 17
—
—————Apr. 17
;
Apr. 17
initiated off the floor

Total sales

WHOLESALE

7

1000's omitted):

U.

393,130

—r-—

Total round-lot

Other

8

' ~"r"~

Silver, London

——w—Apr. 17

Short sales

Total

public

Silver, New York

Initiated on the floor

purchases

Other

™
1,1II

Silver and Sterling

————————Apr. 17

1—

transactions

Total

—

—«——

—-——

,,

48
264

"

Sterling Exchange
-•

'-r-

50
255

32
1

40

50

272

71

Electrolytic domestic refinery
Electrolytic export rqfinery
■

by dealers—

purchases

Total sales

120

352

33

43

,

Lead—

—.—Apr. 17

sales

96

338

40

i

'

building

water

GINEERING

3.62

Apr. 24
Apr> 24
Apr. 24

purchases

Other

I

institutional

ENGINEERING "CONSTRUCTION

3.76

Apr.
—Apr.
—Apr.
Apr.

sales

Short sales

IIIIIIIII II
II
IIIII
IIIII
I
I,_II

::;:v

3.56

106

362

898

facilities

other

3.15

j

Other transactions

121

.

building

and

and

3.18

?

Total sales
*

142

Highways

3.46

sales) t—

sales

Other sales

144

I!!!!!
Z !!!!__
III.IIIIH

;

nonresidential

Military

3.20

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered

t<

64

institutional

Educational

3.47

Apr. 24
Apr. 24

sales

Short sales

84

3.52

ROUND-LOT

Total

50

83

.

Average for month of April:

sales

Short sales

•;

buildings,!

'

Industrial

3.15

Total Round-lot sales—

Other

192

114

70

garages

building

°

TOTAL ROUND-LOT
EXCHANGE AND

Total

173

154

69

recreational

Nonresidential

3.20

sales

ACCOUNT

169

All

*

*

427

152

Miscellaneous public service enterprises
Conservation and development,.

3.12

20

469

II_IIIII

3.09

3.13

2.87

and

94

22

-

465

construction

3.47

Number of shares.-

FOR

24

(nonfarm)

private

Residential

May 11

shares—Total sales

purchases

73

106.21

REPORTER PRICE INDEX—

Short sales

Other

850

92

2.45

sales by dealers—

Round-lot

775

112.56

2.46

FOR ODD-LOT

by dealers (customers'
shares—Total sales

Number of

964

840

and telegraph
public utilities

other

Public

104.66

value

Dollar

Round-lot

1,872

870

■

construction

Other
All

103.13

—

Odd-lot purchases

'

$2,758

1,780

956

11

10.250c

110.34

—

Customers' other

$2,555

1,897

•

20

13.800c

110.34

—

—*

Dollar value

short

$2,795

I

III,I

;

26

10.250c

110.34

Number of shares

Customers'

38,722

OF

21

13.800c

ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS
ON N. Y. STOCK
EXCHANGE —SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases it-

Number of

94,280

37,203

27

Railroad

106.74

100

=

STOCK TRANSACTIONS

86,043

31,702

27

Public utilities

I 105.86

of

OIL, PAINT AND DRUG

80,459

*70,080

*201,000

22

Farm

113.12

activity.—————.—
orders (tons) at end of period

Unfilled

DEPT.

71,186

70,525

200,808

ASSOCIATION:

(tons>_

(tons) ——

Percentage

8,018,000

Miscellaneous

12.500c

116.02

INDEX

PAPERBOARD

Production

240,042,000

28,424,000

33

98.000c

112.75

Group

Orders received

*278,542,000

6,982,000

31

State

NATIONAL

237,413,000

16

29.925c

DAILY AVERAGES:

COMMODITY

MOODY'S

13,455,000

16

13.750c

115.63

Group

Utilities

Public

*16,163,000

alterations,,

and

94.250c

112.93

Group

Industrials

16,400,000

14,649,000

40

29.450c

•'

Railroad

19,141,000

38

14.000c

li5.63

U. S. Government Bonds
Average corporate

(

35,000

17,395,000

39

95.750c

110.70

Group

BOND YIELD

MOODY'S

34,000

40

29.600c

May 11
May 11
May 11
Group

18,408,000

35,000

nonresidential building

14.000c

May 11
(—May 11

Group

Utilities

183,736,000

21,323,000

Educational

93.500c

110.88

*

223,868,000

193,453,000

19,749,000

Religious

29.675c

100.55

Baa

Public

S.

(nonfarm)

Stores, restaurants,

29.675c

110.70

A

Railroad

(tonsi

Commercial

29.700c

100.51

Aa

214,810,000

178,603,000

April (in millions):

building

29.700c

100.03

May 11

Aaa

198,387,000

units

and

29.700c

DAILY AVERAGES:

S. Government Bonds

Average

5
5
5
5
5
5

———-——-———May
———-———
May
May
————-—
May

at

PRICES

BOND

of

tyuilding

Social

.—May

—-—

—-

Louis)

period

construction

Hospital and

at
York)

Louis)

(St.

(East St.

MOODY'S
U.

(New

(New York)

of

Nonhousekeeping

Electrolytic copper-

Straits tin

105,275
252,313

70,233

"III

(tons >

construction'

New

QUOTATIONS):

Domestic refinery at——————

309,611

(tons of

pounds),,

CONSTRUCTION—U.

new

VT',

May 4
ton)———May. 4
May 4
M. J.

5,322,066

293,557

Industrial

(per lb.)

(E. &

7,897,000

234

206

6

(per gross ton)

PRICES

8,396,000

5,679,654

83,761

1

Warehouses, office and loft

COMPOSITE PRICES:

IRON AGE

8,390,000

—~

„

period

LABOR—Month

&

.May

BRADSTREET, INC

8,438,000

8

6,184,900

5,791,528

76,626

*rY.:V \ •.•'

-

2,000

Unfilled orders at end

ELECTRIC INSTITUTE:

Electric

5,904,599

5,534,416

export

—

Residential
113

•••

output all grades

pounds)
Shipments (.tons of

Total

and

,,

smelter

zinc

Additions
EDISON

Ago

INSTITUTE, INC.—Month of

2,000

Private

.—May

100

=

y'•'.'.

ZINC

I

(barrels)

April:

Siab

$252,625,000

INDEX—FEDERAL RESERVE

SALES

STORE

DEPARTMENT

$314,283,000

$493,968,000

(barrels),—

Increase all stock

BUILDING

(tons)

Pennsylvania anthracite

$241,103,000

6
6
6
6

(barrels)__IIIII

Indicated

OF MINES):

S. BUREAU

(U.

OUTPUT

Month

(barrels of 42 gal-

output

oil imports (barrels)
Refined prodjucts imports (barrels)

/'-■

NEWS-RECORD:'
Total

oil

gasoline output (barrels)

AMERICAN
-

crude

Crude

"

V

.

May
(no. of cars) — May

(number of cars)
freight received from connections
freight loaded

Revenue

Year

Month

INSTITUTE—Month

production

ions each)

.

•

Revenue

Previous

of February:
Total domestic

Stocks at refineries, bulk terminals, in transit, in pipe lines—

i

-.

(bbls,).

(M therms)

(M therms)___

6,276,150

_May
May
„May

.

therms)

(M

gas sales

Mixed gas sales

6,486,250

6,586,450

6,621,600

|Kerosene output (bbls.)
Distillate

sales

gas

Manufactured

output—dally average

condensate

and

of that date:

are as

Latest

March:

"

<

of quotations,

cases

either for the

are

AMERICAN GAS ASSOCIATION—For month of

100.3

Equivalent- to—
„

in

or,

production and other figures for the

shown in first column

Dates

39

E.

at

morning session of

St. Louis exceeds 0.5c.

London Metal Exchange.

ttDelivered where freight

>•

'

•40

The Commercial and Financial Chronicle...

(2128)

Continued from

Shearing

major

a

the outlook for Stock
the latter part of the

on

in

prices

have

also

if

soon,

in

we

the

of

way

(4) Finally, it

On the basis of the known fac¬

record

the

and

tors

to

date,

a

<airly sizable reaction within the
yvext few months from around the
325-335 level of the Dow-Jones
industrial
*ninus

would

not

"fairly sizable" I

By

surprising.

plus or
be at all

(330

Average

2%)

somewhere between 30 and

mean

points, or roughly 10%, This
compare with a maximum
-decline to date, since last Sep¬
40

would

tember, of nine points, and on a
closing basis, of less than 2%.
What is more significant, how¬
is

that

selective

and

ever,

highly

today's

in

the

that

early

1946
the

which

that

of

the

in

declines

its

ran

reversal

a

see

in

advance

time

just

course
we

the

to

were

pronounced

business

indicating

curves

yields.

to

business

While

close.

a

believe

the

that

I

do

trends

of

stock

and

prices will
continue divergent indefinitely, I
think it is worth keeping in mind
that the stock market seldom dis¬

the

counts

thing twice: the

same

twice

the

A

~.<rent

or

some

(It might

ynonths—or

even years.

toe recalled

that it has been only

the past few weeks that
leading steel stocks were able

There

are

number

other

of

Studies which also point

Timing
to the

a

prospect of a nearby inter¬

•during

mediate peak in the market aver¬

the

ages,

get above the levels touched
in February, 1951; and that even
j5ome of the "growth" issues which
to

gest that it would be better to go
on
to the subject of the longer-

optimistic possibility I can
at the present time is a
market pattern similar to
19271928.

Although it

time.)

No

it

Reaction Factors

into

going

the

longer-

outlook for the market

term

av¬

Market

Bear

Among the reasons for believing
that

Before

have

to

seems

been

completely overlooked, the
year 1927 witnessed a sizable (if
selective) business readjustment
the

about

magnitude of that
the past 12

during

months. The FRB Index of Indus¬

trial Production declined by about
10% during that year, and steel
operations fell from an average of
95%
to

of

capacity

low

a

later.

in March, 1927,
65 %
eight months

of

Corporate

mixed,

very

earnings

but

were

whole

the

on

well below the levels of the

were

preceding
Jones

two

The

Dow-

Average,

how¬

years.

Industrial

(which

Summer

a

should
40

35 to

reaction,
to

amount

as

even

much

if
as

points in the Dow-Jones

Industrial

Average, would not be
the beginning of a new bear mar¬

lapse

of

1926),

rose

did

not

with

Florida

the

the

a

col¬

in

boom

steadily in

experience

much

as

experienced

had

shakeout

moderate

very

a

1927 and
reaction of

5% between February

as

October. In the latter month,

and

shortly before the reversal of the
downturn in business activity, the

I should like to summarize
Dow-Jones Industrials had a
principal reasons for believ¬ ket, are the following:
quick shakeout of 10% on a clos¬
(1) In spite of the adverse ef¬
ing that, for the first time in the
ing price basis!
past eight months, the risks of an fect that inventory curtailment is
intermediate setback of more than having, on business in general, it
Similarities With the 1920's
erages,

my

5%

to

4%

are

quite

now

sub¬

technical

(1) The
the

for

1949-1950

255

great deal in common
which
preceded the

a

that

with

the

from

advance

level has

background

As had been true

rise.

of

number

previous occa¬
sions, the first sizable reaction in
that period did not occur until
a

en

Industrials

Dow-Jones

the

had

rise equal in duration,
and of twice the magnitude, of
the
preceding
decline.
Compa¬
rable action at the present time

enjoyed

a

call

would

for

jhigh in late May
:*«t

the

around

en

intermediate

an

early June,

or

level.

335

(To

the safe side, let us say

2%

or

(2) With

the

release

first

of

earnings

reports, the
has had a chance

market

to reflect the current

year's earn¬
ings prospects for those companies
whose income

held down last

was

by excess-profits taxes. (This

year

the

was

for most of the

case

com¬

panies whose stocks make up the
Dow-Jones Industrial Average. It
is partly for this reason, of course,
that

the

Dow

"better than the

this

As

year.)

market does
•

stocks

have

done

majority of issues
the stock

rule,

a

not

try to anticipate
or
discount earnings for the
following year until sometime in
the

third

June-July

or

fourth

quarter.

The

the

Dow-Jones
this year will

stocks

within

hold

that

probable

earnings for

Industrial

2%

or

3%

of

last

year's composite figure of $27.50
a

share. Current levels of 320-323

for the Dow-Jones Industrial

Average
than

are

12

equal to slightly less

times

earnings. Priceearnings ratios have averaged 15.0
at the highs for the year, and 11.5
at the lows for the year, over

past 20 years. In the 20
to

the

prior

years

1947, the Dow-Jones Industrials

reached

peak of at least 14 times

a

earnings in all but two years—1941
and 1942. A level of 14 times

ings

this

year

would

Dow-Jones Industrial

somewhere

to

3% of 335.)

«•quarter
stock

be

within

reasonably

seems

the

stantial.

earn¬

bring the
Average up

between

370

and

390.

The
tern

possibility of

roughly

1928,

over

stems

not

a

similar

the

next

only from

market pat¬
that

to
year

the

of

or

so,

coinci¬

the reasons for the low

taxes

and

increase

an

money supply.

been

vacancies

the fact that many investors have
not made mental adjustments for

return to

rise

in

in

the

the

num¬

mercial

realize

may

people

are

change

now

beginning to

prices for goods and
and therefore sales and

continue

(2)
year

to

hold

at

more

than

the pre-war levels.

1928

with

a

population, com¬
are
still running

failures

50%

below

the

1927

These two
other

periods have still

"common

denominator"

an¬

in

that the floating
was

supply of stocks
being reduced in 1927 by in¬

vestment

tion
book

trust

as a

of

and

institutional

result of the publica¬

Edgar

Lawrence

"Common

on

Smith's

Stocks

as

.

Jby sometime in May
each

the

of

past

June.

or

In

lows

This
*eem

for

the

3%

Before, anyone
that

stock

high-grade bonds were selling
a
4% or higher yield
basis,

chance of

of the highs or

whole.

compared with only 3% today.

year, as

a

particular "straw"
to

409-BJA Celling

that

years,

touched

during these two months proved
be within

A

conclusion

either the highs or lows

to

yield basis, at the highs for
the year, of 4.6% or less in all but
a

three years from 1926 to
1946, in¬
clusive. During part of this

eight

suggest that

a

would

sharp de¬

cline might get under way fairly




inflation

where

ther

period,
on

as

(3)

There is a tendency for the
market to capitalize the
average

earnings of the preceding 10
at twice the current
rate of

years

yields

possible,

of

to be some¬

375

and

This would

425,

or

fur¬

mean a

current

from

advance

year

either side of the

to 6%.

tations

is

seem

quo¬

of

only about 25%, or a
comparable with that en¬

ltfse

Be¬
joyed since last September.
tween September, 1927, and Sep¬
dustrials

cline

(a 50%

j-etracement of the

preceding advance) in June and
July of that year. There is little
question but that the character of
the

leadership in the market will
change following the anticipated
technical correction.

Indus¬

renewed major

a

(which

400 level.

ad¬

the next

over

between

5%

say

maximum

Dow-Jones

course), would

1929, the Dow-Jones In¬
advanced by more than

Investors wno were willing to
ignore the extreme pessimism of
summer and
have kept 90%

last
or

of their funds invested in

ipore

equities,

might

of

terms
serves

to

buying re¬

up

further near-term
These funds could be
any

strength.
used

in

think

now

building

on

subsequently accumulate
well
managed
and

of

stocks

growing

which have
their turn in

companies,

not

as

the

rotating popularity cycle.

yet enjoyed

John G. Kahn Co. Offers

100%!

Unfortunately there is no cer¬
tainty that stock prices will work
back toward prewar

relationships

Finance Co. Securities
John C. Kahn

to

earnings and dividends during
the 12 months immediately ahead.
The low ratios which prevailed
subsequent

large

C., is offering as a speculation
$100,000 of 12-year 6% subordi¬
nated debentures, series A, dated

due in
believe, not April 1, 1954, and due April 1,
1966, of Prudential Finance Corp.
of America, at 100% and accrued

1946

to

measure,

Co., Washington,

D.

were

we

only to skepticism as to the per¬
manency of the higher commod¬

also 100,000 shares of
non-voting stock (par
cents) and 50,000 shares of

ity price levels, but also to the interest;
fact that bur Federal Government

had

become

nated

increasingly domi¬
"leaders."

by certain labor

These

individuals

were

sponsor¬

ing economic theories and legis¬
lation which were threatening the
long-term earnings outlook for
the vast majority of our corpora¬
tions.
this

There is still

danger that

a

will regain control of
Congress next fall. In that event,
it may be necessary to reappraise
group

the

entire

satisfied

be

stock

outlook

economic

be¬

1954, and perhaps
a
recovery
in

with

prices

common

10

class

A

cent)

of

the

of

one

units

stock

moderately

only

to

voting

and

stock

$2

(par

one

company
in
of
common

same
share

share

one-half

A stock at

of class

unit.

per

The debentures may be redeem¬

at

ed
to

prices

ranging from

105%

100%, plus accrued interest in

each

case.

After the
ceived
of

fore the end of

16 cents per

each

stock has

common

class

equally

of

in

any

re¬

dividends

non-cumulative

share per annum,
will

stock

further

share

dividend

declaration.

levels which may be
,
The Prudential corporation was
during the weeks imme¬
organized in Delaware on April
diately ahead. This would seem
2, 1954.
to
be
a
minimum
expectation
It is intended that the business
from
a
technical standpoint,
in of the
corporation will be to fi¬
view of the distinct tendency of
nance
manufacturers,
distribu¬
the market to experience a shaketors, merchants and others and to
above

the

reached

out of 5%

or

within two to

more

four

months

tant

cyclical peaks.

cause

the

of

certain

a

impor¬

more

(Recent

of

amount

tern

investment

ular
one

once

that

a

either

portfolio.

made

market

make advances

rations and

loans to corpo¬

or

others, either with

or

ex¬

con¬

the

in

I

jumps
have

to

following the 1928 pat¬
during the period

detail

Detroit

Joins

Bradley

Watling,

both

picture with only one
It is usually better to use
eyes even if one eye hap¬

pens

to be weaker than the other.

eye.

a

I

*

it

:j:

,

summarize,

we

the

of

ad¬

in the stock market averages
since last summer suggest that we

vance

probably

where

should

nearing

substantial

a

be

much

as

30

Dow-Jones
would

not

to

40

a

point

decline of

a

points

Industrial

in

is

However,

any

Average
up

such

re¬

seems likely to be followed
fairly fast recovery, with the
chances favoring new highs by a

Domestic

Co.,

with

Ann

Building.

WINSTON-S ALEM,

N. C.¬
Nancy J. Hundley has been added
to

the staff of Harris, Upham 8c
Co., Pepper Building.

Joins Thomson McKinnon
(Special to The Financial Chronicle)

MIAMI
M.

BEACH,

Gale

is

Thomson

&

coln

sometime in

and

foreign political
developments will probably have
a
major bearing on whether the
anticipated i'ecovery late in the
year will prove roughly compa¬

ahead, I think it is in order to
point out that an advance of the rable with that witnessed follow¬
1928-192& magnitude is virtually ing the 11% shakeout in Febru¬
ary, 1946; or have more.in com¬
out of the question. SEC
regula¬ mon with
thp rise during the last
tions, as well as margin rules, to¬
half of 1950 following a 14% de¬

Fla.—Edward
affiliated

now

McKinnon,

with

927 Lin¬

Road.
,

i

-

•

"

•

Three With A. M. Kidder
(Special to The Financial Chronicle)

a

moderate amount by
the fall.

&

Harris, Upham Co. Adds

the

action

by

connected

now

Lerchen

above 330 within the next few

weeks.

Exchange.

Watling, Lerchen

Arbor Trust

as

be surprising, particu¬

larly if this index should get
to

Stock

reaction

For various

expected.

technical reasons,

A.

e n

associated

(Special to The Financial Chronicle)

believe that

the nature and extent

are

A 11

ANN ARBOR, Mich.—Alfred V.

to

viewing

—

become

(Special to The Financial Chronicle)

technical

or

the

suggested
has
a

market

the

of

on

analogous

has

S. R.

Livingstone, Crouse &
Co., Penobscot Building, members

observation

the

is

alone

DETROIT, Mich.
Buchalter
with

Some¬

appraisal based

fundamental

factors

To

therefore, seem likely to approximate $16 a L o n g-T e r m Investments." The
would seem to be a logical time
share. An advance to an average cumulative effect of common
for a technical adjustment.
yield basis of 4% would permit a stock buying by the pension funds
(3) The foregoing reasoning rise in this Average to around and rapidly growing mutual funds
.' happens to coincide with the fact 400. A more conservative
figure is undoubtedly having an impor¬
that, as pointed out in the August, might be a price objective from tant impact on the type of issues
1953, "Cheerful View of the Stock the yield standpoint of 4.5%. This which dominate the market aver¬
Market," the market has shown would mean a high of around 360. ages today.
a definite tendency to reverse
any It might be noted that stocks sold
on

the

two, barring

and

period,

trend in the first half of the year

in

vance

levels.)

buying

Dividend payments this
on
the
Dow-Jones
stocks

realistic

trial Average

that

services,
earnings potentials, are on a new
plateau, and will almost certainly
double

business

the

about

failures

highly competitive con¬
(In spite of the increase

post-war sales and earnings levels.
situation

approaching longlevels, and in the

business

ditions.
in

were

"normal"

the rise in the general price level,
and have therefore distrusted the

more

A

We certainly have
this respect today.

overdone because

term

that

sion.

time, support this conclu¬

fusion, but this can be resolved
a
parallel in
by placing the greater emphasis
Other
1927-1928
parallels might on the side of the picture which
be found in the fears in
both, offers the least risk in light of the
years that the building boo>m had
primary objectives of any partic¬

price-earnings ratios since 1947 is

This

promptly

without security.
activity
include the declines in
that year while stock prices were amples
The net proceeds of the sale of
February,
1946,
and
Septemberthe new securities will be used in
advancing,
but
also
from
the
October,
1952.)
connection
with the establishment
causes
of this coincidental
phe¬
nomenon. In 1927-1928, we had an
I should like to mention at this of the business of the corporation,
Administration in "Washington
point, that I think it is important primarily for working capital.
which
was
definitely doing its to always look at the market from
best to strengthen business con¬ both a fundamental and technical S. R.
Livingstone Co. Adds
fidence
by working
for
lower point of view. At times, this may
(Special to The Financial Chronicle)
dental decline in business

ber of commercial and residential

One of

that

or

more

allowed to get out of control

was

at

act

visualize

ever

outlook.

term

still

ere

375J

View

,

popular in early 1946
selling at substantially
toelow the highs reached at that

v/ere

but limitations of space sug¬

a

6%,
price

most

of brief duration.

to

at

or

technical standpoint, the

a

toe able

20%

as

of the recently
which might not
to get back to their currecent highs for many

for

■30%

much

as

the

would

tember,
From

popular issues,

of

reaction

yield,

Technical

of

past

for

objective of between 350 and

experienced

si

valua¬

this formula would call for

eight months has certainly
been reflecting in part, at least,
the expectation that
the recent
business readjustment would be

markets,

rotating

decline will probably mean

a

Earnings

bond

rising level of stock prices in the

mich

these

10
years
have averaged $21 a
share; and for the 10 years ending
Dec. 31,
1954, will approximate
$22.50 a share. The yield on topquality bonds is now 3.0%. If
these earnings are capitalized at

got

brought

that

Dow-Jones Industrials for the past

under way with the
cut-back in spending for arma¬
ments as World War II was being
not

average
earning power
period of years, rather than
single year, with the rec¬

tions correlate with fluctuations in

the
stock market during late 1945 and
about

the

on

of

bond

be recalled

may

sharp

than it did in the late '20s to stop
the stock market inflation, which

ord

pattern" in the stock market.

year.

real investors value stocks

for any

seeing something
a
new
"seasonal

are

gether with the prospect that the
FRB

over a

Currently Warranted
will

ap¬

parently due to the fact that the
basis

Cautious Market Attitude
jmonths

high-grade bonds. Inis is

on

first page

Thursday, May 13, 1934

MIAMI,
de

Fla.—Ivan

L. Becker,
Mott, David Shultz
Cresswell E. Stedman, Jr.,

Beaumont

and

have become affiliated with A. M.
Kidder & Co., 139 East Flagler
Street.

Joins King Merritt Co.

"

(Special to The Financial Chronicle)

ROCK
Lucille
nected

Co., Inc.

H.

ISLAND,
Swanson

with

is

111.—Mrs.
now

con¬

King ' Merritt

&
,

yolume 179

Number 5324... The Commercial and Financial Chronicle

Continued

from

laboratories

11

page

(2129)

dustry

computers

Bush,

a prewar

Vannevar

pects.

expert in mechan¬

banks

ical computers,

been

great strides

Installations

impact
the

in

several

saving time and effort
checking of accounts and
signatures.
in

said recently:

have

"There

Dr.

Industrial television is perform¬

supplementing and substitut¬
ing for human thought.
Digital

ing valuable functions in teaching

machines

industry.

the

development of

for

perform

can

hundreds

of thousands of arithmetical

man¬

and

research

work

well

as

Recently,

combined

was

with

in

as

unit

ITV

an

optical

an

ipulations a second, and by so microscope and an ingenious elec¬
doing can solve even abstruse tronic computer for the rapid and
partial differential equations. accurate counting of microscopic
There
is
no
reason
wny -man particles, including red blood cor¬
should

not

chine all

those

of

esses

relegate

to

his

ma¬

parts of his proc¬
which are

cerebration

repetitive in nature,
exact

the

or subject to
thus freeing

formulation,
mind

for

those

processes

which the human brain alone
encompass.

is

.

When the machine

.

.

can

puscles.
Electronics
lished

has

itself

for

tool

in

estab¬

already

another

research.

way

The

a

as

electron

microscope, with amazing powers
of
magnification, has opened a
new world for exploration by re¬
search

workers

in

medicine,

to man's brain, which chemistry, metallurgy and a host
guide it, the combination can of other sciences. The best optical
perform
feats of analysis that microscope magnified somewhere
reach much farther into the un¬ between 2,000 and 3,000 diameters;

joined

can

known

than

dividual,

the

can

far

unaided

beyond

what

be

resolved
by groups
with conventional aids.

day such machines
to

with

may

can

of

.

.

in¬

men

Some

.

enable

us

the

growing com¬
plexities
of bio-chemistry,
and
bring order and understanding to
a
field
of fundamental
impor¬
tance to the race." ("Today's Re¬
cope

search

and

Jan. 20,
The

been

Tomorrow's

cipally

are

performing prin¬
military and physical

in

research, but the commercial and
Industrial

uses

scendants

can

microscope
20,000 diam¬

magnify up to
eters, with useful photographic
enlargements
beyond
200,000
diameters

scale

a

—

which

at

a

dim^ would

appear more than 2
miles across!
This amazing tool
has enabled scientists to observe
for

the

first

time

the

virus

of

polio.
In the industrial

tron

that have

electron

present

can

World,"

1954.)

great computers
built

the

field, the elec¬

microscope

variety of

study

has

found

a

ranging from the
paper
fibers and the
uses,

of

structure of synthetic rubber latex
to

behavior

the

of

metals

under

to which their de¬

varying conditions of temperature
put are now be¬ and stress.
Use of the electron microscope
evident.
RCA scientists
be

coming
and engineers
ing

are now develop¬
breed called "Bizmac"

new

a

—short

for

business

machines—

has

expanded

steadily

improvement has kept

intricate statistical operations
connected
with
cost
accounting,

More

control

and
general
with a speed and
far beyond that of hu¬

bookkeeping,
accuracy

clerical

man

The

workers.

commercial installation of
tensive
used

system to be
inventory
and
stock

will

control

in

be

the

Automotive

and

Detroit, Mich.
You

held

Bankers

Ordnance
Center

>"

be

may

cussion

of

aware

the

by

at

placed

upon

which

dis¬

American
in

business

abolish

to

a

New

machines

time

and

in

record-keeping, to per¬
robot
operations
and
to

space

form

data

store

"memory
terial.:

tape

or

or

in

tanks"

consisting
of
bits of magnetic ma¬

tiny

many

cards

on

:

What is true of

banking in this
case is equally true of insurance,
public utilities, transportation,
large-scale wholesaling and re¬
tailing, and any industry or enter¬
prise that handles a large volume
of

trade

consumer

individual

or

with
the widening scope of its research.
than

microscopes

other field

Television

television
in

which

great expansion.
list

of

uses

to

is

we

long

work¬

An

and' in

fluence

improved

deeply into
infinitely small

and

particles

health and

our

that

in¬

tech¬

our

nology.

V

The condition

of

the world

be¬

ing what it is today, it is inevitable
that electronic science should have
made

its

of

some

greatest

nical contributions in the

field.

Securitv

round

tech¬

military

restrictions

sur¬

of these accomplish¬
know that the de¬
radar and various

many

ments, but

we

velopment

of

electronic

devices

has

gone

far

beyond anything dreamed of only
few

At the same
time, electronic control, tracking
and computing devices of stagger¬
ing complexity have been success¬
a

fully

years

ago.

developed

for

program and
and

aboard

In

recent

gun

guided

our

for airborne
func¬

control

military aircraft.

'

demonstrated

is be¬

netic

tape

upon

Wherever there is

an

industrial

to be observed from posi¬

process

tions too dangerous, restricted or
remote
for
a
human
observer,
there
cuit

is

a

job for the closed-cir¬

industrial

television

system.

This

developments
clusively for

used

in

a

a

number of processes

in

plants. It is being
by police to watch prisoners
jail or to transmit to other
energy

locations the daily lineup of sus¬




up

com¬

now

and

I'm sure you under¬
perhaps share the en¬

principal applications of electron¬
ics today, and most of them ap¬
pear to be barely over the thres¬
hold

as

far

by

being
new

their ultimate

use

is

These existing devices
augmented constantly
developments from the

concerned.
are

as

the

of the demonstration, the tape was
monitored
for
immediate
play¬

and

it

that

may

back

produce

on

color

a

difficult

was

detect

the

much

viewers

difference

to

virtually
shielding

between

I

playback and the direct
broadcast as picked up on a com¬
panion receiver. In another phase

the

the

black

demonstration,
and

-

-

white

color

re¬

in

works

principles

sound tape

the

on

recorders, but

entists have had to

same

our

sci¬

overcome

the

tape recorder

developed

because

after

time.

While

have

we

We

is

view

television

of

when

ment

available

This

is,

the

on

business

activities

of

how

I

these

cover

,

RCA

which

battery,

demonstrated

in

Jan.

a

New

was

electronics

York

on

without

was

television

000

sets

in

the

entire

country.

served

by
The

360

broadcasting stations.
industry, including
manufacturing, sales and broad¬
casting, amounted to nearly two
television

half billion dollars last year
a half billion dollars of

a

business that did not exist in 1946.

This

!i

explosive

based

on

a

battery. The radioactive strontium

with

several

electrons each
particles). As the
electrons pentrate the wafer, they
release many more electrons, an
average of some 200,000 for each
bombarding electron.
These re¬
high-speed
(beta

electrons
the

in

was
of intensive

research

by the scientists and en¬
of RCA during the late
1920's and the depression decade
30's.

the

This

research

turn

flow

junction, producing a
voltage that can be applied to an

first

ceivers

of 1 production

million

television

before

troduced

a

in¬

was

commercially — but the
a major industry
accepted change

in
I submit that the

of life.

way

stockholders of RCA made

and

ago,

sion

good

a

of

story
sion

as though the
black-and-white televi¬

may

be repeated — in
Dec. 17, the Federal

well

Last

color.

Television

today

appears

Communications

proved
tions

can

Commission

ap¬

standard signal specifica¬

for

vision

—

compatible
color

tele¬

color

transmission

that

be received in black-and-

white

on

the

28,000,000

in American homes with

ations,

and

receivers

color

in

that

on

have

sets

now

alter¬

no

the

gone

new

into

commercial production.
Behind
new

color

the

price

a

Another invest¬

large

pay

the

to

line

divi¬

just

turn

now

rate of

color

re¬

off

move

two

our

weeks,

manufacturing divi¬

our

can

2,000

them

out

month.

a

ai.

These,

have a 15-inch
screen, and,
thanks to compatibility,
they^will
sets

pick

black-and-white

up

casts

well

as

sets

as

color.

broad*

These first

priced at $1,000—a high,
price in comparison with thepresent black-and-white sets, butare

relatively

no more than the mono¬
chrome sets of 1946-47, when tele—
vision was just
getting its start.

And

expect history to repeat*

we

itself in this regard as well, with,
the
cost
of color
sets
reducing

steadily

as

techniques

new

of manufacture

means

and

devel-

are

oped.

■

There is

„

question but that aindustry is being bom;
receivers need color pro¬

major
Color

no

and color programs re*
quire new studio and broadcast*
ing equipment, and new produc¬
grams#.

tion

techniques. Color television
already in production
are
being delivered to net¬

cameras are

and

work

and

local

of

j

m a

broadcasters

cities.

o r

in.

Color

pickup and monitoring equipmentnetwork
programs
was
in¬
stalled just before Jan. 1 in more;

ior

than

a

in

cities

time

the

across

for

the

first

pickup of the Tournament
parade in Pasadena by

"live"
of

of

score

country,
Roses

the

National

Broadcasting

Com¬

Already, color reception is
sible

35

in

cities

introduction

of the

system lies a research

program just as intensive as that
which led to the introduction of

television itself in 1946.

The RCA

from

posr-

coast-to-

coast, and it is estimated that 125L
stations

will

be-

equipped for color broadcasts by
the
end of this
year, providing1
coverage for 75% of the television
the country.

increased

in

color

gradually

will

during

be*

the-

The National Broadcasting
whose engineers and

year.

Company,

production
wealth

specialists gained ar
experience I»l

of

color

with

collaboration
the

past

four

RCA

is

years,

during
already-

an average of
color programs

two
eacffc

week, and by the end of the
the

will

network

and

third from Burbank,

a

year

two

colorcast

week from New Yorkr

programs a

in addition to

a

series of

Calif,

special^*

produced 90 - minute spectacularshows
commencing in
October
various

and

spebial

that

events

will be given color coverage from
time to time.
What

does

television

color

in¬

volve, and what does it look like?

production

Program

does nojt
that for

differ substantially from
black

and

-

white

-

television,

ex¬

cept that producers must use*

pleasing color combinations in*
costuming and sets with an eye*
dimension

additional

the

to

that*

color

provides. Monitoring in thebroadcasting station also is some¬
what

Color
It

to

commercial

began

production

pro¬

together with the creation
and broadcasting
facilities, cost RCA more than $50
gram,

diagram I have illustrates
principles of the RCA atomic

the wafer

growth

program

investment.

/

The

gineers
of

it

dends.

commercial

widely

;■

will

broadcasting

manufacturers and

our

—

usable

that

100

and

a

of

people.

our

ment

Today, at the end of
eight years, the total is more than
28,000,000 sets, produced by nearly

and

cost

to ther

color available to*

Broadcasting

electric
that will operate a tran¬

material

generate

amount

all of

homes in

strontium

tiny

reduce

I want to conclude with this sub¬

has been

uses

and

will make

television

result

27,

vision
that

have

varied

—two and

steps.

leased

do¬

practically non¬
existent outside of the laboratory
a
mere
eight years ago. At the
end, of 1946, there were only 10,-

the

atomic battery is at least
promising—but the promise is
a good deal farther off in the fu¬
ture. In its present state, the bat¬
tery is a laboratory device which
represents a very long step for¬
ward in the attempt to gain usable
electrical /;power
directly
from
atomic energy with no intermedi¬

across

his

has
up

pany.

wonder

to

Television

The

billion

his

1930's,

and more will be spent
on
continuing research and de¬
velopment to improve color tele¬

mentioning television, the one de¬
velopment that has had a great
impact on our society in recent
years.
The reason is simply that

as

the

and

the

$30 million

present,

ject.

home.

current

communcation,

may

aspects

It

recording visual information as
as sound, television tape re¬
cording should find a wide variety
of uses in industry, in national

The

of

working
improvement in his

of

You

well

ate

capable

methods

happened

basis.

in

tools

in

same

placing at the disposal of
a
remarkably versatile

of

development program,
least

at

us

scores

At the

mestic environment.

becomes

ultimately

of course, dictate
to which all of these new

constant

in

and

of

set

of

defense,

before

open

cannot,

uses

ess

effect, a totally new
photography, performed
instantaneously by electronics for
immediate use or for storage over
an
indefinite period.
Capable of
means

lie

that

and

mankind

entertain¬

system

commercial

a

research

we regard the widening ap¬
plication of electronics as a proc¬

this

for

of

time,

specific—and

a

industry and

new

areas

devices will be put.

technique of recording, there
far wider application outside
field

the

in

wide

the

television.

extensive—use

under

Perhaps all of us wonder oc¬
casionally what the ultimate ob¬
jective may be.

primarily

time

develop¬

and

use

us.

chemical processing and
the tape can be erased

re-used

relatively

our

application

is also useful for black-and-white

a

stage in lab¬
throughout the electron¬
industry.

the

for
color television use, to eliminate
the substantial time lag and con¬
siderable expense involved in
processing color film for televi¬
sion. The tape method will be far
cheaper because program material
recorded on the tape is ready for
immediate playback without elec¬
or

others

many

development, indicate the vitality

complex problem of han¬
dling on tape video signals
ranging up to 4,000,000 cycles per
second as compared with a maxi¬
mum
of 20,000 cycles per second
of audio signals.
television

of

intermediate

an

of

more

is

are

ments, in current

conventional

as

to

us

amounts

All of these electronic

television

new

substantial

future. There

ics

The magnetic tape recorder for

and

a

enable

oratories

ceivers.

tronic

day

one

varying importance nearing the
end of the experimental period or

several
days previously
played back and appeared in
all their original detail on the re¬

The

demonstrates

power

devices,
principle

on only two of
laboratory developments that
practically certain to affect

our

were

being

long-life

and

transistorized

of

corded

basic

in

have touched

are

and

programs

for

power.

the

of

for

source

receiver, and it

for

need

The laboratory battery is an ex¬
tremely low-power device, devel¬
oping only a millionth of a watt—
but it points the way to a
new,

compact,

second

our

will

source

ing Company studios in New
York, 48 miles away. During part

tioned comprise only a few of the

in

radioactive

mag¬

bombards

By

plants, to coordinate activ¬
ities in the separate buildings of
a
large watch-making plant, to
atomic

picked

industry looks to the future.
These developments I have men¬

application

mercial and industrial activities.

stand

observe

It

half-inch

on

ics

radar,

nificant

with

slightly impure strontium now
available, but ultimately a purer

was

thusiasm with which the electron¬

like

mixed

the

time

90—only 1/300th of a cubic centi¬
meter and a by-product of atomic
fission—is spread in a thin
layer;
against a wafer of semi-conduct¬
ing crystal such as germanium or
silicon, into which, an impurity
has been alloyed to form an elec¬
trical
junction.
The strontium

equipment is being used to¬
day to scan hot steel strips in
rolling mills, to inspect pulp un¬
der strong heat and pressure in
paper

intended ex¬
military use will,
ultimately find sig¬
now

radioactive materials

and-white sent by microwave re¬
lay from the National Broadcast¬

States—and

our

has to be shielded to absorb radi¬
ation from some of the unwanted

series of test trans¬

a

United

indeed

experi¬

battery are extremely
compact.
The laboratory model

missions in both color and black-

90—to

the

first

this

for the minute quantities used
this type of battery.

recorded

radioactive

of the free

here

see

the

of

mental

we

color

launched

elements

atories in Princeton.
and

The

television

you

for

cur¬

eliminate

continuing progress in
ing put, and of the constant de-,
military electronics. We may con¬
velopment of new applications.
'
fidently expect that many of the

of

those

in

a

last December at the RCA Labor¬

sistor.

version

life

cause

to flow.

The

an

The television tape

equipment that

safety

welfare

of

any

tant advances.

future

and

of

way

rent

months, RCA has
two highly impor¬

demonstrated

world—are dependent

horse

as

Military Electronics
The
of

future

our

profound

as

electrical circuit and

in¬
are

have discussed.

on

more

the nature of the

organisms

tions

a

among

research

model, with even greater powers
of magnification,
is now under
development by our scientists and
engineers, and we will soon be

look for

this

use

and

country,

continent.

every

yet-an¬

There is

which

this

electron

health centers and laboratories

detection
Industrial

in

are now

in

centers

pace

RCA

industries

of

scores

missile

accounts.

Industrial

450

penetrating far

emphasis
was
ultimate ability

the

electronic

virtually

in

:

Association

York,
of

ex¬

"Bizmac"

for

Tank

first

an

its

since

introduction by RCA slightly over
a
decade
ago,
and its technical

which will be capable of the most

inventory

upon

are

the

machines

in

just

bound to have

"Whither Electronics?"
these

throughout our
developments that

—

41

more

ambitious than

is

re¬

quired for black-and-white tele-casting as can be noted in this.
slide of the monitor panel aii
Colonial

NBC's
York

the

—

Theatre

in

first

world's

New

fully-*

equipped color studio.
For

of special events,
designed and is now op¬

coverage

NBC has

erating

a

mobile unit consisting
vans, equipped with

of two large
color

ti ansmission.

and

cameras

equipment capable of relayingprograms
by microwave to the
broadcasting station.
This unit
was

first

used

in

the

Pasadena

broadcast

on

Jan. 1—last week it

used

to

show the

was

beauty of

blossoms in
Washington.
Soon you will beable to see all the great current

the

Japanese cherry

events in full

natural color.

.

/

42

The Commercial and Financial Chronicle...

(2130)

Thursday, May 13, 1954

V,

* IN DICATES

Securities

in

Now

American Coffee-Matic Corp., N. Y.

Budget Funding Corp. (Del.)
April 20 (letter of notification) 149,850 shares of 7%
cumulative preferred stock (par $2) and 29,970 shares

(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital, etc.
Office—20 Broad St., New
March 22

of common stock (par one cent) in units of five shares of

York, N. Y. Underwriter—Mid-West Securities, 164 Con¬
gress St., Brooklyn, N. Y.
•

American

Cyanamid Co., New York

preferred

and one share of common stock. Price—$10
Proceeds—For working capital. Office—167-10
Avenue, Jamaica, L. I., N. Y. Underwriter—
Inter-City Securities Corp., Jamaica, L. I., N. Y.

(6/3)

May 5 filed 585,000 shares of cumulative preferred stock,
(par $100—convertible prior to July 1, 1964) to
be offered for subscription by common stockholders of

•

California Electric Power Co.

April

22

stock

(par $50).

1, 1954 at the rate of one preferred share
for each 15 shares of common stock held (for a 14-day

Proceeds

Price—To be supplied by amendment. Pro¬
increase
working capital and for general
corporate purposes. Underwriter—White, Weld & Co.,

standby).

ceeds—To

York.

Price—$150

share. Proceeds
Underwriter—None.

per

and surplus.

—

(par $100).
To increase capital

.

stock

cents

per

No

(par

one

gage

&

Otis,

New

Inc.,

Price—$1

common

(5/20)

April 30 filed 77,706 shares of
to be offered

for

26

common stock
(par $5)
subscription by stockholders of record

Power

$8,000,000

Co.

first

of

Proceeds—To redeem

3%%

bonds due 1983.

&

★ Cherokee

Industries,

Inc., Oklahoma

City, Okla.

Underwriter—None.

ISSUE

May 14

Office

Colonial Fund, Inc.
(5/17)
r
April 23 filed 700,000 shares of common stock (par $1)..
Price—Initially at $16 per share. Proceeds—For invest-,

Underwriter—Stone & Webster Securities Corp,,;

Consol. Edison Co. of New York, Inc.
April 7 filed $50,000,000 of first and refunding

Fund,
&

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley
&

Co.; The First Boston Corp. Offering—Originally set
May 11, but has been postponed because of market

for

conditions.

No

(Philip

ceeds—To repay

1, 1955, and to purchase stock from

Corp.)

bidding.

Blatf

&

Co.,

Inc.)

(Hunter Securities Corp.)

EDT)

noon

Power

$290,000

Bonds

____

$25,000,000

Bangor & Aroostook RR._____

share).

(.Bids

11

(Bids

to

be

Peabody

&

Co.

and

$975,000

&

(Kidder,

Co.)

117,500 shares

Bonds

$65,000,000

unit for each 50 shares of stock
held.
expire on or about June 9.
Price—To be
pay

current

improvements,

etc.

on

$50 of

Public

the basis

Industries

Service

11

EDT)

a.m.

$5,000,000

Shawano

(Offering

Automatic

Canteen

Brandywine
(Laird

Co.

Raceway

Securities

Harrison

11

June

3

&

Co.,

Co.)

(The First Trust

Co.)

(Offering

of

June

(P.

America

Assn.,

Inc.;

20,000

Co.

$1,000,000

to

Common

South

Carolina

Bissell

shares

and

of Lincoln,

&

Meeds;

&

$200,000

Notes

Co.

Inc.)

W.

7

(Monday)

Brooks

&

Debentures
Inc.)

Co.,

$250,000

(P.

W.

Brooks

&

Co.,

Common
$490,000

Inc.)

&

(Bids

H.

be

to

9

June
Common

&

common

by

Blair,

(Offering
&

Co.

Oil

Glitsch
(A.

C.

&

&
Co.)

Co.)

Morgan

Allyn

&

Co.,

June

15

Utilities

States

Preferred

Preference

Co

Co.)

Common

pfd.

170,000

&

900,000

Drexel

shares

(Bids

to

be

Gulf States Utilities
(Bids

invited)

...Bonds
$24,000,000

to

./...Preferred

Co

be

invitedi

$16,000,000

/

(Bids

11

150,000

First

common

(Bids

shares

Gulf

to

Power

22

EDT)

"

Bonds

$6,000,000

*

-

V.

(Tuesday)

Preferred

Co.)

Common

$298,000

.

.

invited)

be

to

to

$6,000,000

Bonds
11

a.m.

June

29

Duquesne Light
(Bids

$5,000,000

Co
tBids

.Common
Southwest

New York
Inc.)

a.m.

Duquesne Light Co.

Inc.

The

'

Jersey Central Power & Light Co

shares

Co.,

(Tuesday)

Co..

""

Pfd. & Common

and

and

Mutual Investors Corp. of
(Greenfield

underwritten by

& Co.)

$600,000

(Monday)

& Sons,
Inc.

be

$4,000,000

Refining Corp

(Fritz W.))

..Common

Stanley

$900,000

Co.)

Rothchild &

$1,000,000

(Wednesday)

stockholders—to

to

and

Rollins

Gulf

Gas Co

&

May 24
(Loewi

Bonds

$10,000,000

Philadelphia Electric Co

June

Clark

invited)

notes

Transportation Development Corp
(L.

(Tuesday)

Gas & Electric Co

Southwestern

$295,000

Service

(Bioren




Preferred
$58,500,000

Co.)

Common

Peabody

Southeastern Public

offices

$5,000,000

Lynch Carrier Systems, Inc..

and

Neb. and Cruttenden

pfd. and 85,909 shs. of

Electric &

(Kidder,

all

..Debentures

Co.)

&

&

June 8

Iric.__Com.

Laird,

stockholders—underwritten
&

to

$25,000,000

(Thursday)

Weld

(White,

Common

_

Indian Head Mills, Inc.-

Private Wires

Bonds
EDT)

a.m.

American Cyanamid Co

Kansas-Nebraska Natural Gas Co., Inc.

&

Cleveland

shares

800,000

(Wednesday)

$249,000

Preferred

Chicago

Common

Ltd

(Offering to stockholders—underwritten by Glore, Forgan & Co.)

1

Pittsburgh

365.400 shs.

Co._

(Kidder, Peabody

.■*: >;

Corp.)

Common

Co

Corp. of America

77,706 shares

San Francisco

$760,000

(Tuesday)

Brothers)

Power
(Bids

May 20 (Thursday)

Corp.

Boston

Brothers)

Lynch Carrier Systems, Inc

(letter of notification) 3,750 shares of
capital
stock. Price—At market
($2 net to seller). Proceeds—
^
Rockey, the selling stockholder. Underwriter
—Stubner & Co., New York.

Philadelphia

Bonds & Pfd.

$50,000,000

Preferred

Office —Wil¬

April 23

NewYork.

$2,500,000

(Thursday)

Gas

(Lehman

Bonds

Co

Development Corp..
Securities

$2,300,000

stockholders—no underwriting)

to

$20,000,000

Electric & Gas

(McGrath

Curtis)

&

EDT)

Scudder Fund of Canada,

Vanadium

$24,994,200

liabilities, and

Pierce,

Preferred

/& Gas Co

a.m.

27

Northern Natural

Consumers

(Morgan Stanley & Co., Drexel & Co. and Glore, Forgan & Co.)

Rights will
supplied by

Lynch,

$7,500,000

Co.)

&

June 1

...Preferred

Peabody & Co.)

(Bids

.

mington, Del. Underwriters—Laird Securities
Co., Inc.,
and Laird, Bissell &
Meeds, both of Wilmington, Del.,
and Harrison &
Co., Philadelphia, Pa.
'
British

(Wednesday)

New York State Electric & Gas Corp...

1, 1964.

one

Proceeds—To
expansion and

11

(Vickers

:

PDT)

Missouri Public Service Co

Brandy wine Raceway Association, Inc.
(5/20)
April 28 filed 20,000 shares of capital stock
(par $1)
and $200,000 of 6%
subordinated notes due June

Merrill

Common

Weld

June 2

May 19

•

amendment.

Jackson

May

State Loan & Finance Corp.______
Debentures
(Johnston, Lemon & Co. and Union Securities Corp.) $8,000,000

Price—At

and

Beane)

United States Sulphur & Chemical Corp.__CommOn

Boston Fund, Inc., Boston, Mass.

for

Preferred

&

Common

Lawrence Cook

a.m.

$25,000,000

(Wednesday)
Co.

&

Webber,

$27,000,000

Pacific Gas & Electric Co
(Bids 8:30

Debentures

EDT)

a.m.

Inter-Canadian Corp.

(Offering to stockholders—may be underwritten By Hayden,

market.

of stock and

Bonds
$3,000,000

General Telephone Co. of Kentucky

(Bids

Northern Ohio Telephone Co
Miller

Co..

(Tuesday)

Public Service Electric

Commission__Debentures

invited)

&

Equip. Trust Ctfs.

EDT)

a.m.

Montreal Transportation

planned.

May 19, 1954,

Stuart

Corp

Fenner

May 18 (Tuesday)

common

Benrus Watch Co.,
Inc., New York
(letter of notification) 10,300 shares of com¬
mon stock
(par $1). Price—At market (about $11
per
share). Proceeds—To selling stockholders. Underwriter
—Ralph E. Samuel & Co., New York. No general offer

of

11:30

(White,

•

April 30 filed 250,000 shares of
capital stock.
Proceeds—For investment.

Halsey,

invited)

be

to

May 26
Florida

lPaine,

April 29

to be offered in units of
five shares
notes to stockholders of record

bidders:

California Electric Power Go

iKidder,

$5,000,000

Virginia Electric & Power Co.__

Proceeds—To selling stockholders. Underwriters—
L. F.
Rothschild & Co. and
Ralph E. Samuel & Co., both of
New York. No general offer
planned.

jr

make loans to its

or

CALENDAR

shares

/Common

Pro¬

use

Probable

(Bids

700,000

1979.

the funds to pay for new con¬
Underwriter—To be determined by competi-'

struction.

•

per

(5/25)

$15,000,000 long-term notes due March

Common

Gordon

(Bids

(about $11

set.

filed $25,000,000 of debentures due

15

$150,000

Uranipm-Petroleum Co...-«J)ommon

Underwriter—Hunter Securitiei

Benrus Watch
Co., Inc., New York
April 27 (letter of notification) 7,600 shares of
stock (par $1). Price—At market

date

new

Consolidated Natural Gas Co.

(Monday)

Securities

mort¬

bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds.
Under¬

(Bids

Inc

Webster

•

gage

May 25
Common

Light Metals Refining Corp

latter issue,

Of the

Consolidated Natural Gas Co

Pro¬

—

stockholders)

to

May 17
Colonial

commor

share.

(par $1).
account of

selling stockholders.
be supplied by amendment.
Proceeds—For;
expansion and working capital. Underwriter—Loewi &
Co., Milwaukee, Wis.

(Friday)

First Nat'l Bank of Toms River, N. J

(Stone

per

due

mort¬

Underwriter—To be deter¬

NEW

Corp., Santa Fe, N. Mex.

ceeds—To acquire properties and leases.

stock

common

Price—To

tive

Underwriter—None.

Bldg., Santa Fe, N. M.
Corp., New York.

bonds

mortgage

Underwriter—Glore, Forgan

Dec. 23 (letter of
notification) 748,000 shares of
■tock (par five cents). Price—40 cents

of

50,000 shares will be for

tal.

Investing Corp., Wil¬

Gas

shares

subsidiaries who will

(Offering

ISSUE

•

May 10 filed 5,000,000 shares of class B non-voting com¬
stock (par 1 cent). Price—$1 per share. Proceeds—
For construction, operating expenses and
working capi¬

Automatic Steel Products, Inc.,
Canton, Ohio
3
(letter of notification) approximately 35,000
shares of 30-cent non-cumulative
preferred stock (par
$1). Price—At market (estimated at $2.87 Vi per share).
Proceeds—To Allied International

Natural

REVISED

New York.

mon

May

Basin

PREVIOUS

Clark Oil & Refining Corp. (5/24-28)
April 29 filed 50,000 shares of $1.20 cumulative convert¬
ible preferred stock, series A
(par $20) and 150,000'

April
■

Co., New York.

mington, Del.

SINCE
ITEMS

Childs Food Stores, Inc., Jacksonville, Tex.
April .26 (letter of notification) 5,000 shares of class A
common stock (no
par). Price—$13 per share. Proceeds
—For working capital.
Underwriter—Moroney, Beissner
&' Co., Houston, Tex., and
Eppler, Guerin & Turner,
Dallas, Tex.

ment.

(5/25)

like amount of first

a

May 20 on the basis of one new share for each six shares
held; rights to expire on June 7. Price—To be supplied
by amendment. Proceeds—To extend activities in the
merchandise vending field.

•

.

Electric

filed

Merrill
Lynch.
Offering—Tem¬

—

York.

•

Ga.

share of

one

unit.
Proceeds—For
equipment and working capital. Office—206 N. Virginia
St., Reno, Nev. Underwriter—None.
per

Automatic Canteen Co. of American

New

Casualty Insurance Co.
April 7 (letter of notification) 20,000 shares of class E
stock (par $1).
Price—$4 per share. Proceeds—To in¬
crease capital and surplus.
Office — 262 Morehead St.
Burlington, N. C. Underwriter — Courts & Co., Atlanta

stock (par 25 cents) and 40,000 shares of preferred stock
each class of stock.

Underwriter

Beane,

Carolina

general offer planned.

^-Atriminas, Inc., Reno, Nev.
May 4 (letter of notification) 40,000 shares of

j(par 75 cents) to be offered in units of

&

by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kidder,
Peabody & Co.; Blyth & Co., Inc. Bids—Expected to be
received up to 11 a.m. (PDT) on May 25.

to purchase these shares at 15
Proceeds — To Delbert E. Replogle,

Underwriter—Gearhart

outstanding.

mined

125,000 shares of class
cent). Price—At market. The

agreed

share.

President.
York.

has

April
1984.

Electronics, Inc.
(letter of notification)

common

redeem

Fenner

California

Arcturus

underwriter

105,000

To

porarily deferred.

March 17 filed 20,000 shares of capital stock

A

—

presently
Pierce,

American Transportation Insurance Co.,
Kansas City, Mo.

•

filed

shares of cumulative preferred
Price—To be supplied by amendment.
two
issues of $2.50 preferred
stock
(par $50), totaling 98,800 shares, and, together
with proceeds from proposed issue of
$8,000,000 of new
first mortgage bonds, to redeem $8,000,000 37/g% bonds

record June

April 22

unit.

per

Hillside

series C

New

Registration

AD D1TION S

be

EDT)

$10,000,000

; /

-

(Tuesday)

..Bonds

Co
invited)

"

$15,000,000

to

$17,000,000

ial Chronicle

The Commercial and Fi

Number 5324.

179

Volume

Inc., White, Weld & Co. and Paine, Webber, Jackson &
Curtis (jointly); Morgan Stanley & Co. and The First
Boston Corp. (jointly). Bids—Expected to be received up >
to 11:30 a.m. (EDT) on May 25.
^ Consumers Power Co.

$25,000,000

filed

of

1984.

Proceeds—To redeem at 105.25% a like
outstanding 3%% bonds due 1983. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
basis.

3%%

of

amount

&

Kuhn, Loeb & Co., and Union

Co.;

Securities Corp.

(jointly); Harriman Ripley & Co. and The First Boston
Corp. (jointly).
Bids—Expected to be received up to
11

(EDT)

a.m.

June 2.

on

'

Cornbeit Insurance Co., Freeport, III.
March 17 filed 300,000 shares of common stock

I*rice—$3

share.

per

(par $1).

Proceeds—For investment.

Under¬

writer—None.
Cornetl-Dubilier Electric

Corp.
(letter of notification) 1,666 shares of common
stock. Price—At market (approximately $30 per share).
Proceeds
To Octave Blake, the selling stockholder.
Underwriter—Pyne, Kendall & Hollister, New York.
i

April 7

—

if Decca Records, Inc., New York

May 10 filed
tal

stock

Universal
be

undetermined number

an

(par 50 cents)
Pictures

supplied

by

ox

to be offered

Co., Inc.

Decca

exchange for
Ratio—To

stock.

common

amendment.

shares of capi¬

in

May 1 owned
672,996 shares (66.2%) of Universal stock, with 344,338
shares in hands of approximately 1,783 other stock¬
on

holders.

Also there were warrants outstanding for the
purchase of 79,873 shares of Universal stock at $10 per
share held by others than Decca, and any Universal
stock acquired upon exercise of such warrants may be
tendered for exchange.
Soliciting Agent—Georgeson &

Co., New York.
•

Douglas. Oil Co. of California.
April 23
Shares

(letter of

of

ing

per

stockholders.

Co., New York.
El

notification)
stock

common

(around $6.37%

a maximum
of 17,000
$1).
Price—At market
Proceeds—To certain sell¬

(par

share).

Underwriter—Shearson,

Hammill

&

-•

Paso

Drug Corp., El Paso, Texas
(letter of notification) 6,000 shares of capital
stock (no par) to be offered for subscription
by existing
May

4

stockholders.
Texas.

Office—1000

South

El

Paso

l General Stores Corp., New York
•**
March 8 filed 300,000 shares of common stock (par $1).
Price—$1.37% per share. Proceeds—To pay part of cost
of acquisition of Ford Hopkins Co., Chicago, 111. Under¬

writer—A. C. Allyn & Co., Inc., Chicago, 111.

1

(6/2)
first mortgage

bonds due
Price—To be not less favorable to company than a

6

May

(2131)

St., El Paso,

Underwriter—None.

• Electronic
Associates, Inc.
April 19 (letter of notification) 7,500 shares of common
stock (par SI) being offered for subscription
by stock¬

if Gladwin Plastics, Inc., Atlanta, Ga.
May 6 (letter of notification) 149,500 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To re¬
tire debt, for working capital and other corporate pur¬
poses.
Office—275 Houston St., N.E., Atlanta, Ga. Un¬
derwriter—Clement A. Evans & Co., Inc., Atlanta, Ga.
Glitsch

(Fritz W.)

& Sons, Inc. (5/24-28)
170,000 shares of common stock (par $2).
Price—To
be
supplied by amendment.
Proceeds—To
selling stockholders. Office—Dallas, Texas. Underwrit¬

May 3 filed

ers—A. C.

Southwest

Allyn & Co., Inc., Chicago, 111., and The First
Co., Dallas, Texas.
'

• Hilo Electric Light Co., Ltd., Hilo, Hawaii
common stock to be offered
subscription by stockholders of record June 5 on the

May 10 filed 25,000 shares of
for

basis

of

scribed

one

share

shares

to

for

be

each

offered

four

shares

held.

Unsub¬

to

employees.
Price — At
par ($20 per share).
Proceeds — To repay bank loans
and for additions and improvements.
Underwriter —
May be named by amendment.
• Indian Head Mills, Inc. (5/20)
May 6 (letter of notification) 59,000 shares of common
stock (par $1) to be offered for subscription by com¬
mon stockholders of record May 19 on the basis of one
share for each four shares held (with an oversubscrip¬
tion privilege); rights to expire on June 7.
Of these
shares, 9,000 are to be first offered to employees. Price
—$5 per share. Proceeds—For working capital. Under¬

writer—Blair, Rollins & Co. Inc., New York.

^ Inspiration Lead Co., Inc., Wallace, Idaho
May 4 (letter of notification) 2,000,000 shares of class B
stock (with debenture warrants).
Priee —15 cents per
share.
Proceeds — For mining development.
Office —
106 King St., Wallace, Idaho.
Underwriter — Mine Fi¬
nancing Inc., West 909 Sprague Ave., Spokane 10, Wash.
•

Inter-Canadian Corp.,

Chicago, III.

(5/26)

9s 1954. Price—$18.50

venture investment situations

share. Proceeds—For working

per

•

it Fair Finance Co., Akron, Ohio

April 28 filed

May 5

stock

(letter of notification)

benture notes.

$50,000 of series 1-A de¬
(in multiples of $50). Pro¬

Price—At par
increase working capital.

ceeds— To

Arlington St.. Akron, O.

Office

—

1

North

stock.

Price—At

operating
Hudson

par

capital

St..

New

and
York

($1

Jan.

29

share).

operating
14, N. Y.

Bliedung. Washington. D.
Financial Credit

142,875 shares of class A

per

Office—421

Underwriter—Carl J.

C.

Corp., New York

filed

250,000 shares of
fund preferred stock. Price—At

7%

working capital.
Co., Inc., New York.

Kansas-Nebraska

cumulative

18

filed

Price—$25 per
ment

Metals, Inc., Pittsburgh, Pa.

Power

capital.

Corp.

Underwriter—None.

(5/26)

May 3 filed 75,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—$3,378,400 to redeem 4.90%
stock

now

Merrill

cumulative preferred

outstanding, and the remainder used for

construction.

new

Underwriters—Kidder, Peabody & Co. and

Lynch, Pierce,

Fenner

&

Beane,

both

of New

York.
Gamma

Corp., Wilmington, Del.
Feb. 2 (letter of notification)
140,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For inventory, capital expenditures and
working capi¬
tal. Office—100 West 10th
Street, Wilmington, Del. Un¬
derwriter— Sheehan

&

Co., Boston, Mass.

General Credit

March 25

Corp., Miami, Fla.
(letter of notification) 74,990 shares of capital

stock (par $1).

Price—$4

per

share. Proceeds—For work¬

ing/ capital. Office—799 N. W. 62nd Street, Miami, Fla.
Underwriter—Murphy

&

Co..

Miami,

Co., Inc.

(5/20)

to
on

be

offered

Gas

the

basis

for subscription
of

new

one

about May 18

share

Inc. (5/20)
stock (par $5)
by common stockholders
for

each

10

shares

held

oversubscription privilege).
Employees to be given right to purchase unsubscribed
shares. Price—$23 per share.
Proceeds—For property,
on

or

(with

Underwriters

an

Cruttenden

Kendon

Electronics Co., Inc.
(letter of notification) 150,000 shares of com¬
stock
(par 10 cents). Priee—25 cents per share.

April 21

Fla.

working capital and general corporate
Office —18 Clinton Street/Brooklyn, N. Y.
Underwriter—20th Century Pioneer Securities Co., New
York, N. Y.

purposes.

ir Klamath Oil, Inc., Lewistown, Mont. >
3 (letter of notification) 500 shares of common
Price—At par ($100 per share).
Proceeds—For
drilling expenses, etc.
Office—Montana Bldg., Lewistown, Mont. Underwriter—None.
May

stock.

if Lake Champlain Associates, inc.
May 3 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
To

construct

tions; and

museum building, etc.; for salvage opera¬
working capital.
Office—,Willsboro, N. Y.

Underwriter—None.

Corp., Baton Rouge, La.
common stock (par $5).
supplied by amendment., Proceeds — To
selling stockholders. Underwriter—Kidder, Peabody &
„Co., New York. Offering—Postponed indefinitely.
March 19 filed 100,000 shares of
Price

—

To be

(General Public Utilities Corp.
April 15 filed 606,423 shares of common stock (par $5)
to be offered for subscription by stockholders at rate
•

of

one

new

share

for

each

15

with rights to expire June 2.
amendement.

domestic

shares

held

on

May

12;

Price—To be supplied by

Proceeds—To be invested-in corporation's

subsidiaries.

Underwriter—None, but Merrill
Lynch, Pierce, Fenner & Beane may act as clearing
agent. Offering—Expected today (May 13).




(par 65
cents) to be offered first to stockholders and to gen¬
eral public. Price—$2 per share. Proceeds—To increase
capital and surplus. Underwriter—None.
•

Refining Corp., New York (5/17)
shares of common stock (par $1).
$4 per share.
Proceeds —For construction and
equipment of control plant, and main plant, working
capital, advance royalties and reserves.
Business — To
refine beryllium ore and market the products.
Under¬
Light Metals

stock

Inc., New York.

each $1,000 of debentures to acquire 150 shares of
talk stock at $3.75 per share through May 1, 1962).

—100%
—To

and

accrued

establish

sales

interest

for debentures.

capiPrice

Proceeds

application engineering offices in
selected cities to aid effort of company's national dis¬
tributors; for machinery and equipment; for general
funds to continue research and development; and to pro¬
vide additional working capital. Business — Designing
and manufacturing of electronic communications sys¬
tems. Office—San Francisco, Calif.
Underwriter—P. W.
Brooks & Co., Inc., New York.

redeem

shares

cumulative

of

outstanding first preferred stock

($3,475,000), to repay $750,000 bank loans and the bal¬
ance

construction

for

Underwriter—Kidder,

program.

Peabody & Co., New York.

Monterey Oil Co., Los Angeles, Calif.
2 filed 257,338 shares of common stock (par $1).
Price—At the market price then prevailing on the New
Feb.

through special offerings or
Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
of their immediate families (150,458); and The Lehman

York

Stock

Exchange,

or

secondary distributions.

Underwriter—None.

Corp. (106,480).
planned.
Montreal

Transportation

Canada

No general offer

Commission, Montreal.

*

(5/18)

sinking fund debentures,
issue, due May 1, 1974, guaranteed unconditionally
as
to principal, interest and sinking fund retirements
by The City of Montreal (Canada). Price—To be sup¬
plied by amendment. Proceeds—To redeem outstanding
$24,944,300 of Montreal Tramways Co. general mortgage
sinking fund bonds due April 1, 1955; and balance for
modernization program. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Shields
& Co., Halsey, Stuart & Co. Inc. and Savard & Hart
(jointly); Kuhn, Loeb & Co., Glore, Forgan & Co. and
Salomon Bros. & Hutzler (jointly); Lehman Brothers;
White, Weld & Co., Union Securities Corp., and Blyth
& Co., Inc. (jointly); Dominion Securities Corp. Offer¬
filed $27,000,000 of

April 29
1954

ing—Tentatively expected

on

May 18.

Corp. of New York (5/24)
April 29 (letter of notification) 298,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For working capital.
Office—550 Fifth Avenue,
New York.
Underwriter—Greenfield & Co., Inc., New
Mutual

Investors

York, w-■;Natick Industries,

Inc., Natick, Mass.
(letter of notification) 58,800 shares of com¬
(par $1). Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Boston, Mass.
March

mon

10

stock

New Bristol
Dec. 18 filed

Price—To

Oils, Ltd., Toronto, Out., Canada

1,000,000 shares of common stock (par $1).
to the bid price of the shares on

be related

the Toronto Stock Exchange, with a
commission.

20% underwriting

Proceeds—For general corporate purposes.

Underwriter—To be named by amendment.
New Mexico

Copper Corp.

April 4 (letter of notification) 600,000 shares of common
stock (par 25 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses.
Office—Carrizozo, N. M.Jt
and 1211 E. Capital St., Washington, D. C. Underwriter—Mitchell Securities, Inc., Baltimore, Md.
York

New

State

Electric

&

Gas

(5/19))

Corp.

April 21 filed $20,000,000 first mortgage bonds due 1984.
Proceeds—To repay bank loans and for new construc¬
tion. Underwriters—May be determined by competitive

Probable bidders: Halsey, Stuart & Co. Inc.;
& Co. and Salomon Bros. & Hutzler
(jointly); Union Securities Corp.; The First Boston Corp.
and Glore, Forgan & Co. (jointly); Lehman Brothers,
Harriman Ripley & Co. Inc.; Hemphill, Noyes & Co. and
Drexel & Co.
(jointly). Bids—To be received up to

bidding.

Kidder, Peabody

11

a.m.

(EDT)

on

May

19.

North

Pittsburgh Telephone Co.
April 23 (letter of notification) 2,000 shares of common
stock to be offered for subscription by common stock¬
holders of record May 1, 1954, on the basis of one new
share for each five common shares held. Price—At par
($25

Lynch Carrier Systems, Inc. (6/7-8)
May 4 filed $250,000 qf 6% sinking fund debentures,
series A, due June 1, 1969 (with capital stock purchase
warrants attached—each warrant to entitle purchaser of

(5/19)

preferred
Price—To be supplied by amendment.

50,000

(par $100).

Proceeds—To

poses.

writer—Philip Gordon & Co.,

filed

23

Feb. 15 filed 1,250,000
—

Public Service Co.

Missouri

April

Price

•

General Gas

Mission Indemnity Co., Pasadena, Calif.
March 29 filed 600,000 shares of common stock

&

Co., Chicago,
111., and The First Trust Co. of Lincoln, Neb.
—

Republic of Panama
30 filed American voting trust certificates for
1,000,000 shares of common stock (par one cent). Price
—To be supplied by amendment.
Proceeds—For ex¬
ploratory drilling and development, in State of Israel,
and for operations and expenses. Underwriter—To be
named by amendment.
March

Co.,

common

Proceeds—For

33,400 shares of capital stock (par $25).
share. Proceeds — For expansion, equip¬

and working

Florida

Natural

April 28 filed 85,090 shares of

mon

Firth-Loach
March

Gas

etc. Underwriters — Cruttenden &
111., and The First Trust Co. of Lincoln,

Co., Chicago,

additions.

sinking
par ($2 per share). Pro¬
Underwriter—E. J. Foun¬

ceeds—For
tain &

Proceeds—For

expenses.

(no

Natural

10,000 shares of $5 cumulative preferred
par).
Price—$101 per share.
Proceeds—For

property additions,

•

(letter of notification)

KanSas-Nebraska

Neb.

Underwriter—None.

Family Digest, Inc.
April 9

in Canada. Underwriter—

White, Weld & Co., New York.

Underwriter—None.

Mediterranean Petroleum Corp., Inc.,
;

•

April 19 filed 100,000 shares of common stock (par $1).
Price—$25 per share. Proceeds—For venture or semi-

Office—Long Branch Ave., Long Branch, N. J.

—

York.

Telephone Co. of Kentucky (5/26)
May 7 filed 46,000 shares of 5% cumulative preferred
stock (par $50), of which 16,000 shares are to be offered
in exchange for the 8,000 shares of 5.2% cumulative
preferred stock outstanding on the basis of two new
shares, plus $4 per share in cash for each 5.2% share
held. Price—To be supplied by amendment. Proceeds—
To retire 5.2% preferred stock, to repay bank loans and
to pay notes due to the General Telephone Corp., its
parent. Underwriters—Paine, Webber, Jackson & Cur¬
tis and Stone & Webster Securities Corp., New York.

holders of record May 10, 1954 on the basis of one new
share for each 15 shares held; rights to
expire on June

capital.

• Lynch Carrier
Systems, Inc. (6/7-8)
May 4 filed 140,000 shares of capital stock (par $1).
$3.50 per share.
Proceeds — To selling stock¬
holder.
Underwriter—P. W. Brooks & Co., Inc., New

Price

General

•

43

share). Proceeds—For general corporate pur¬
Office—Gibsonia, Pa. Underwriter—None.

per

North Shore Music Theater, Inc.,

Boston, Mass.

(letter of notification) $80,000 of 5% notes due
Feb. 1, 1974, and 2,000 shares of common stock
(par
$10) to be sold in units of $400 principal amount of
notes and 10 shares of stock. Price—$500 per unit. Pro¬
ceeds—For actors' equity bond, royalties, land, construc¬
Feb.

tion

3

of theater

expenses.
Office—60 State
Underwriter—H. C. Wainwright &

and related

St., Boston, Mass.
Co., Boston, Mass.

if Northern Natural Gas Co.,

Omaha, Neb. (6/1)

May 5 filed 365,400 shares of common stock (par $10)
to be offered for subscription by common stockholders
about
nine

June
shares

1

on

held.

the basis of one new share

Unsubscribed

shares to be

for each
offered

employees. Rights to expire on June 12. Price—To
supplied by amendment. Proceeds—For property ad^
ditions Underwriter—None.
to

be

Continued

on

page

44"

.

44

The Commercial and Financial Chronicle...

(2132)

Continued from page
Northern

43
(5/18)

Ohio Telephone

April 23 filed 117,150 additional shares of common stock
(par $10) to be offered for subscription by stockholders
14 on the basis of one new share for each

of record May

standby. Price—To be supplied
Proceeds—To repay bank loans and for
property additions and improvements.
Underwriters—
Hayden, Miller & Co.; McDonald & Co.; Merrill, Turben
& Co.; and Lawrence Cook & Co.; all of Cleveland, Ohio.
held; with a 14-day

two

by amendment.

'■\S Oklahoma Oil Co., Denver, Colo.
(letter of notification) 800,000 shares of com¬
mon stock
(par five cents) to be offered first to stock¬
holders.
Price—25 cents per share to stockholders; at
April 30

market to
21

public.

Proceeds—To drill for oil and gas on
Office—401 Zook Building, Denver

locations.

offset

Underwriter—None.

4, Colo.

(5/18)

Pacific Gas & Electric Co.

refunding mort¬

April 20 filed $65,000,000 of first and

X, due June 1, 1984. Proceeds
To
4% bonds, series V. Underwriter—To
be determined by competitive bidding. Probable bidders:
The First Boston Corp. and Halsey, Stuart & Co. Inc.
(jointly); BJyth & Co., Inc. Bids—To be received up to
8:30 a.m. (P'DT) on May 18 at 245 Market Street, San
Francisco, Calif.

gage bonds, series
-refund $63,040,000

if Pacific Telephone & Telegraph Co.
May 7 filed 1,004,603 shares of common stock to be of¬
subscription by common and preferred stock¬
holders in the ratio of one share for each seven shares

fered for

of

and/or preferred stock held. Price—At par
share). Proceeds—To reduce bank borrow¬
Underwriter—None.

common

($100
ings..

Pumice, Inc., Idaho Falls, Idaho
29
(letter of notification) 1,170,000 shares of
common stock (par 10 cents).
Price—25 cents per share.
Proceeds—To complete plant, repay obligations and for
working capital.
Office —1820 N. Yellowstone, Idaho
Falls, Idaho.
Underwriter — Coombs & Co., Salt Lake
City, Utah.
March

per

if Package Store, Inc., Lecnardtown, Md.
/yfay 3 (letter of notification) five shares of common "A"
stock, 4,995 shares of common "B" stock and 5,000
shares of common UC" stock. Price — At par ($5 per
share). Proceeds—To purchase an inventory for-resale.
Underwriter—None.

Pan-Israel Oil Co., Inc. of Republic
March 30 filed American voting trust

of Panama
certificates for 1,-

€00,000 shares of common stock (par one cent). Price—
supplied by amendment.
Proceeds—For explora¬
tory drilling and development in State of Israel, and for
operations and expenses. Underwriter—To be named by
To be

amendment.

Rio Grande Investment Co., Longmont, Colo.
April 19 (letter of notification) 1,150 shares of common
stock (no par) and 1,150 shares of 6% cumulative parti¬
cipating preferred stock (par $100) to be offered in
units of one share of each class of stock. Price—$100 per
unit. Proceeds
For operating expenses and to make
loans. Business—Finance company. Address—P. O. Box
194, Longmont, Colo. Underwriter—William E. Conly,
Jr.. Longmont, Colo.
—

ir Scudder Fund of Canada, Ltd. (6/1)
May 12 filed 800,000 shares of common stock. Price—To
provide the company wth initial investment funds of
approximately $24,000,000. Proceeds — For investment.
Underwriter—Lehman Brothers, New York.
•

(Fla.) (5/19)
notification) 83,000 shares of com¬
mon stock (par $1).
Price—$3 per share. Proceeds—For
development of land and planting Ramie and for work¬
ing capital.
Underwriter — McGrath Securities Corp.,
New York.

ceeds—To repay

$2,800,000 of .bank- loans, for new con¬
subsidiary. Underwrite?
—Kidder, Peabody & Co., New York.
Southeastern

Proceeds—For

general corporate purposes,

reduce outstanding bank loans
standing securities. Underwriter
Co., Chicago, 111.
V

or
—

probably to
repurchase of out¬
Paul C. Kimball &
i

March 23 filed 2,904 shares of 6% cumulative preferred
stock. Price—At par ($50 per share). Proceeds — For

Underwriter—None.

Com¬

is also seeking registration of $164,000 of deben¬
tures, notes and preferred and common stock heretofore

pany

sold and holders thereof

are

to

be

ofiered

the

rignt

to

"rescind their purchases.

fa Phoenix Budget Loans, Inc.
May 4 (letter of notification) $200,000
ordinated

debentures

5Mj%

ol

sub¬

dated

May 15, 1954, due 1956 to
1965, inclusive.
Price —97.98% to 100%, according to
rmaturity.
Proceeds—For working capital, etc.
Office—
Minneapolis, Minn. Underwriter — M,- H. Bishop & Co.,
Minneapolis, Minn.

if Phoenix Budget Loans, inc., Minneapolis, Minn.
.May 4 (letter of notification) 4,000 shares of $1.50 cumu¬
lative

preferred

stock,

series

A

(no par).
Price—$24
For general cornorate purposes.

J%er share. Proceeds —•
Underwriter—M. H. Bishop & Co., Minneapolis, Minn.

if Poly-Seal Corp., New York
May 7 (letter of notification) 50,000
stock

(par

10 cents).

Price—$1.50

of

share.

capital, etc. (including mould construc¬
Office—405 Lexington Avenue, New York, N. Y.

Porta

Co., Inc., Chestnut Hill, Mass.
April 8 (letter of notification) 640 sha,res of $6 cumula¬
tive preferred stock (no par) and 640 shares of common
stock (no par) to be offered in units of one share of
class

of

stock.

Price—$100

per

lor manufacture of sporting goods.

unit.

Office

•St., Chestnut Hill, Mass.
Underwriter
fe Co., Inc., Boston, Mass.

—

Proceeds—
—

48 Moody

Minot Kendall

if Product Development Corp.
May 4 (letter of notification) 300,000 shares of common
slock (par one cent).
Price—$1 per share. ProceedsTor working capital in the
acquisition, manufacturing
ond distribution of products.
16th and Market
Streets,

Office—1511 Fox Building
Philadelphia, Pa. Underwriter
—A. J. Grayson, New York.
Public Service Electric & Gas Co.
(5/19)
April 28 filed 249,942 shares of cumulative
preferred
stock (pair $100). Price—To be
supplied by amendment.
.Proceeds—To redeem on June 30 a like
amount of 4.70%
preferred stock. Underwriters—Morgan
Stanley & Co

Jew York; Drexel & Co., Philadelphia,
JTorgan & Co., New York.
-

Pa.; and

Glore,'

principal amount.
working

Public Service Electric

JFnret Boston
on

Corp. Bids—To be received up to 11
May 26 at 80 Park Place, Newark, N. J.




Proceeds—To

capital.

Virginia Electric & Power Co. (5/17)
April 19 filed $25,000,000 of first and refunding mortgage
bonds, series K, due May 1, 1984. Proceeds—To repay
bank

(par $10), of which

Price—$13.50

per

improvements. Under¬

writer—Moody Investment Co., Springfield, Mo.
State Loan & Finance

Corp. (5/18)
12-year sinking fund de¬
bentures due May 1, 1966,
Price—To be supplied by
amendment.
Proceeds
To reduce outstanding bank
loans.
Underwriters—Johnston, Lemon & Co., Wash¬
ington, D. C., and Union Securities Corp., New York.
filed

$8,000,000

of

Strevell-Paterson Finance Corp.
Feb. 19 filed 640,000 shares of common

being

value

of

offered

in

authorized,

stock (par 50
exchange for the $300,000 par
issued and outstanding capital

stock

of Strevell-Paterson Finance

of

shares of

13

Co.

on

the basis

(a)

Corporation stock for each of the 5,000
preferred stock (par $10) of
Company and (b) 23 shares of Corporation stock
for each of the 25,000 shares of $10
par common stock

shares

of 5%

cumulative

the

of

the

None.

and

for

new

Underwriter—To

construction.

bidding. Probable bidders;
Halsey, Stuart & Co. Inc., Kuhn, Loeb & Co. and Wertheim & Co. (jointly); Stone & Webster Securities Corp.;
White, Weld & Co.; Union Securities Corp.; Salomon
Bros. & Hutzler. Bids—To be received

uo

to

noon

(EDT)

May 17 at Room 735, 11 Broad St., New York, N. Y.

• Webb & Krsapp,
Inc., New York
April 14 filed $8,607,600 of 5% sinking fund debentures
due June 1, 1974, being offered together with certain
cash by the company in exchange for outstanding com¬

stock of Equitable Office Building Corp. on basis
$5 in cash and $7 principal amount of debentures for
each share of Equitable stock.
Exchange offer, which
will expire any time after June 7, 1954, is conditioned
solely upon acceptance by 80% of outstanding shares.
Underwriter—None. Statement effective May 5.
mon

West Coast Pipe Line Co.,
Nov.

Dallas, Tex.
1952 filed $29,000,000 12-year 6% debentures
15, 1964, and 580,000 shares of common stock

20,

(par 50 cents) to be offered in units of one $50 deben¬
and one share of stock.
Price—To be supplied by
1,125,000

ture

amendment. Proceeds—From sale of units and

additional shares of

common

stock

and

private sales 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.
Offering—Postponed indefinitely.
West Coast Pipe

Line Co., Dallas, Tex.

Nov. 20, 1952 filed 1,125,000 shares of common

14,600 shares will be under¬
share.
Proceeds—To repay

bank loans and for additions and

cents

loans

be determined by competitive

improve facilities and

Underwriter—None.

if Springfield City Water Co., Springfield, Mo.
May 7 (letter of notification) 22,284 shares of common

26

ex*

St., Salt Lake City, Utah. Underwriter — Hunter Secu¬
rities Corp., New York. Offering—Expected today (May
13) or Monday (5/17).

due Dec.

Spokane Seed Co., Spokane, Wash.
March 8 filed $600,000 of 5% convertible debentures due
June 15, 1964, to be sold to pea
growers located in East¬
ern
Washington and Northern Idaho. Price—100% of

company. Offer expires Oct. 31.
Underwriter—
Office—Salt Lake City, Utah, Statement effective

March 30.
Sun Oil Co., Philadelphia, Pa.
April 15 filed a maximum of 139,662 shares of common*
stock
(no par) to be offered for possible public sale
during the period July 1, 1954 to June 30, 1955. Price—
At

market. Proceeds—To selling stockholders. Under¬
writer—None. The shares will be sold through
brokerage
houses.

50

stock (par
Pro¬

Price—To be supplied by amendment.

cents).

ceeds—Together with other funds,

to be used to build

Underwriters—White, Weld & Co. and Union
Corp., both of New York. Offering—Post¬
poned indefinitely.
pipeline.

Securities

if Western Bowling, Inc., Seattle, Wash.
May 3 (letter of notification) 20,000 shares of class A
preferred stock and 5,000 shares of class B common
stock. Price —At par ($10 per share). Proceeds — For
general corporate purposes. Office—4505 39th Ave., S.W.,
Seattle 6, Wash.

Underwriter—None.

Electric

Wisconsin

Power Co.

April 7 filed 421,492 shares of common stock (par $10)
being offered for subscription by stockholders of record
April 27 on the basis of one new share for each 10 shares
held

(with an oversubscription privilege); rights to ex¬
May 20. Employees to receive rights to purchase
unsubscribed shares.
Price—$26.25 per share. Proceeds
pire

on

—For

additions

property

improvements.

and

Under¬

writer—None.

Wyoming Oil & Exploration Co., Las Vegas, Nev.
April 29 filed 500,000 shares of common stock. Price—
At par ($1 per share).
Proceeds—For exploration and
development of oil and gas properties. Underwriter—None.

Wyton Oil & Gas Corp., Newcastle, Wyo.
April 20 filed 1,000,000 shares of common stock (par $1).
Price—$1.12V2 per share.
Proceeds—For general cor¬
porate purposes.
Underwriter — National Securities
Corp., Seattle, Wash., on a "best efforts basis."

Sun Oil

Co., Philadelphia, Pa.
April 15 filed 14,000 memberships in the stock purchase

am

Prospective Offerings

plan for the employees of this

company and its subsidi¬
146,100 shares of common stock (no par), the
the maximum number of shares
which it is anticipated may be purchased by the trustees
uhder the plan. Underwriter—None.

aries and
latter

representing

Taylorcraft, Inc., Conway, Pa.
April

30

(letter

notification) 150,000 shares of 6%
preferred stock, of which 100,public and 50,000 shares to
creditors. Price—At par ($2 per share). Proceeds—For
working capital. Underwriter—Graham & Co., Pitts¬
burgh, Pa.
cumulative

of

convertible

000 shares will be offered to

if Three-In-One Gold Mines Corp., Reno, Nev.
May 3 (letter of notification) 1,993,333 V3 shares of capi¬
tal stock (par one cent). Price—15 cents
per share. Pro¬
ceeds—For mining expenses.
Office—139 N. Virginia
St., Reno, Nev.

Transportation Development Corp. (5/20)
April 26 filed 100,000 shares of common stock (par $1)-.
Price—$6 per share. Proceeds—To finance the costs of
obtaining contracts for the construction of the com¬
pany's transportation system, for working capital and
for

other

L. H.

& Gas Co.
(5/26)
.April 28 filed $50,000,000 of first and
refunding mort¬
gage bonds due May 1, 1984.
Proceeds—For new con.struqtion. Underwriter—To be determined
by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co
inc.; Morgan Stanley & Co. and Drexel & Co.
(jointly V
Jiuhn, Loeb & Co. and Lehman Brothers (jointly)' The

iEDT)

(5/20)

by amendment. Proceeds—For general corporate
purposes. Underwriter—Bioren & Co., Philadelphia, Pa.

capital

Proceeds

Underwriter—None.

-each

Co.

plied

April

For acquisitions,

*

shares

per

—For working

tion).

Service

—

People's Finance Corp., Denver, Colo.

-general corporate purposes.

Public

April 29 filed 36,000 shares of 6% cumulative convertible
preference stock, seris B (par $25). Price—To be sup¬

written.

—

Uranium-Petroleum Co.
(5/13-17)
April 29 (letter of notification) 2,900,000 shares of com¬
mon stock (par five
cents). Price — 10 cents per share.
Proceeds—For exploration and development, of uranium
and petroleum properties.
Office—53 East 4th South

struction and for advances to its

for

Proceeds

and development expenses, and for working
Underwriter—Vickers Brothers, New York.

of

South Carolina Electric & Gas Co. (5/20)
April 30 filed 80,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment. Pro¬

stock

People's Finance Corp., Denver, Colo.
March 23 filed $300,000 of 6% 15-year convertible sub¬
ordinated debentures. Price—100% of principal amount.

(letter of

23

share.

per

ploration
capital.

on

Shawano Development Corp.

April

Price—$2

Thursday, May 13, 1954

general

Rothchild &

Trican

corporate

Co., New York.

Retro-Chemical

Corp.,

April 30 filed 500,000 shares of
Price

—

offering.
corporate

To

be

Underwriters—

purposes.

related

to

the

amendment.

common

market

Underwrite^

stock

(par $1).

price at time of

—

To

be

named

by

'

United Stages Sulphur & Chemical Corp.,
Carson City, Nev. (5/27)

April 30 filed 380,000 shares of

proposal to increase
4,000,000 to 5,000,000
shares to enable the company to sell additional shares
when necessary.
Offering will probably be made to
present stockholders. Proceeds—To subsidiaries for their
construction programs.
Underwriter—None.
April 28 stockholders

the authorized

Arkansas
Feb. 22

common

stock

(par $1).

it

approved

a

stock from

common

Louisiana

Gas

Co.

may sell its
holdings of 1,900,000 shares of this company's stock.
If
sold at competitive bidding, bidders may include Smith,
Barney & Co. and Blyth & Co.. Inc. (jointly).

reported Cities Service Co.

was

Arkansas Power & Light Co.
Feb. 8
In

it

bonds

reported company plans to sell, probably

was

August,
due

an

issue

of about $7,500,000 first mortgage
To be determined by

Underwriters

1984.

—

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Lehman Brothers,
Stone & Webster Securities Corp. and White, Weld &
Co.

Blyth & Co., Inc., Equitable Securities
Central Republic Co. Inc. (jointly); Merrill

(jointly);

Corp. and

Lynch,

Montreal, Canada.

Proceeds—For development costs and general
purposes.

American Natural Gas Co.

Pierce,

Fenner

& Beane and

Union

Securities

Corp. (jointly).

if Bangor & Aroostook RR.
Bids

will

be

received

by

the

(5/18)
company

up

to

11

a.m.

(EST) on May 18 for the purchase from it of $975,000 of
equipment trust certificates to be dated June 1, 1954,
and to mature annually from June 1, 1955 to 1969, in¬
clusive.
Probable bidders; Halsey, Stuart & Co. Inc.;
Salomon Bros. &

Hutzler; Kidder, "Peabody & Co.; Blair,

Rollins & Co. Inc.

Number 5324

Volume 179

...

Boston Edison Co.

plans to issue and
first mortgage bonds due 1984.
Proceeds—-For construction program.
Underwriters—To
be determined by competitive bidding. Probable bidders:
Feb. 15 it was announced

company

tell about $15,000,000 of

-

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man Brothers; Kuhn, Loeb & Co. and A'. C. Allyn & Co.
Inc. (jointly); White, Weld & Co.; Harriman Ripley &
Co. Inc.
Offering—Tentatively expected in June.

Duquesne Light Co. (6/29)
April 28 it-was reported company is tentatively plan¬
ning to issue and $ell fr6M $15,000,000 to $17,000,000 of
bonds about June 29.
Underwriter—*To be determined
by competitive bidding. Probable bidders:

stockholders approved a proposal to increase
the authorized common stock (par $10) from 1,600,000

authorized preferred
stock (par $50) from 181,855 shares to 800,000 shares
to provide for further possible financing.
Proceeds—
For expansion, etc. Underwriters—Harriman Ripley &
Co. Inc. and Hemphill, Noyes & Co.
/

March 8 it was announced issues of mortgage bonds and

preferred stock are now under consideration, but def¬
plans will depend largely upon developments in
the securities markets.
Construction cash requirements
are estimated at $17,300,000 for 1954-1955.
Company is
inite

reported to be considering the issuance of about $9,000,000 bonds this fall and $3,500,000 of preferred stock in

Underwriter—Kidder, Peabody & Co., New York.

1955.

Central Illinois Electric & Gas Co.

it

announced

was

bank

(5/14)

that the company plans new
which wbuld require issu¬
stock and probably $10,000,000 of bonds.

common

construction.

Underwriters

—

stock

mortgage bonds. Proceeds—To repay bank loans and foi
new
construction.
Underwriters—To be determined by

Peabody &
Beane (jointly). For bonds, to be determined by
petitive bidding. Probable bidders: Halsey, Stuart

bidding. Probable bidders: Halsfey, Stuart
& Co. Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).
competitive

Central Maine Power Co.

1

the company

authorized preferred

stock from 330,000 shares to 410,000

—

com¬

Co.;

& Co.

Colorado-Western

March 5 it

Lehman Brothers.

(jointly).

Common stock was increased by stock¬
25 from 2,5b0,000 shares
]to 5,000,000
shares, and the preferred stock from 250,000 shares to
500,000 shares.

11

March

Florida

&

Power

;

Light Co.

Jan.

25 it was reported company may later this year
issue and sell about $15,000,000 of first mortgage bonds.

&
&

reported

was

future,

Jackson

&

of

Curtis.

Pipeline Co.

applied to Colo¬
a $21,500,*000 natural gas pipe line, in Colorado, to be financed
through sale of about 70% of bonds and 30% of equity
-capital.
John R. Fell, a partner of Lehman Brothers, is
rado P. U. Commission for

authority to build

Vice-President.

1

SMarch 5 it
.June

;and

issue

to

an

was

announced that company plans

and

sell

common

$40,000,000 of senior

early In

debentures

senior debentures later

Proceeds—For construction expenses and to re-

"flalsey, Stuart & Co. Inc.; Morgan Stanley. & Co.

Connecticut Light & Power
was

.-and
«&

stock.

Co.

reported company plans to raise between

^10,000,000 and $20,000,000

in 1954 from sale of bonds

Underwriters—For

common

be placed privately.

Consolidated

a proposal to
preference stock

approve

shares; the authorized preferred

25,000

to

from

1,500,000 to 2,000,000 shares. Pur¬
stock had been sought so that

increases

company

in

will have available
stock

to

be

used

additional authorized

when

considered

advis¬

able by

the board of directors for corporate purposes in¬
cluding, but not limited to, the acquisition of new busi¬
ness, financing of new construction, payment or prepay¬
ment of outstanding indebtedness, restoration of working
capital, granting of additional employee stock options
under the plan approved by stockholders in 1949, and
additions

to

working capital.

Underwriters

The

—

Fibers, Inc.
April 9 it was reported company plans to raise about
$2,500,000 through issuance of new securities later in
1954.
Underwriter—McCormick & Co., Chicago, 111.

stock:

it necessary to

its

of

announced

sell

unissued

a

bond issue or to issue the balance
shares, of which there are

common

As the company's shares are
selling on the New York Stock Exchange at about
$7.50 per share it is necessary that stockholders on April
13 approve issuance of the unissued shares before they
can
be sold at a premium.
Proceeds—To be used for
financing Granduc Mines, Ltd., in which Granby owns
interest.

Putnam

Inc.

.April 8 it was announced stockholders will vote May
"17 on increasing common stock
(no par) by 2,000,000
The company has no definite plans to issue

was

reported company plans to issue and sell

$10,000,000 of new first mortgage bonds due 1984. Pro¬
ceeds—Refund $6,593,000 of outstanding first mortgage
4i/8% bonds due 1983 and for repayment of bank loans
and new construction.
Underwriter—To be determined

^shares.

by

-these shares.

White,
Weld & Co. (jointly); Merrill Lynch, Pierce, Fenner &
Beane, Salomon Bros. & Hutzler and Drexel & Co.
(jointly); Equitable Securities Corp.; Union Securities
Corp.
Bids—Expected to be received up to 11 a.m.

-fr Cott Beverage Corp.
TMay 5 it was reported 160,000 shares of common stock
-are to be publicly offered—100,000 shares for account of
•company and 60,000 shares for selling stockholders. Price
-—In neighborhood of $10 per share. Proceeds—For gen¬
eral corporate purposes. Underwriter—Ira Haupt, & Co.,
: New York. Registration—Expected in June, 1954.
Duquesne Light Co. (6/22)
April 22 directors announced stockholders will vote on
.-June 23 to increase the authorized

preferred stock from
1,000,000 to 1,250,000 shares (par $50). It is planned to
: sell
about $5,000,000 to $6,000,000 of this issue. Proceeds
For construction program.
Underwriters—To be de¬
termined
by competitive bidding.
Probable bidders:
"The First Boston Corp.; Lehman Brothers; Blvth & Co.
".Inc.: Kidder, Peabody & Co., Merrill Lynch, Pierce, Fen:«er & Beane and
White, Weld & Co. (jointly); Kuhn,
Xoeb & Co. and Smith, Barney & Co. (jointly). Bids—
Tentatively expected to be received on June 22.




competitive

(EST)

&

on

Co.

bidding.

Inc.;

Probable

bidders:

Halsey,

Kidder, Peabody & Co. and

June 22.

(6/15)

announced company plans to issue and
$24,000,000 of first mortgage bonds. Proceeds—To
redeem two issues of 3%% bonds totaling $20,000,000,
and for new construction and general corporate pur¬
it

was

sell

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.:
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros.
& Hutzler and Union Securities. Corp.; Kuhn, Loeb &
poses.

Co. and A. C. Allyn &

Co., Inc. (jointly); Lee Higginson

&

announced

stockholders.

Co., New York.

stockholders will vote

May

Underwriters—May be Glore, Forgan
-

Long Island Lighting Co.
April 20 it was announced company

plans

this

year

to
issue $20,000,000 mortgage
bonds.
Proceeds — To
finance construction program.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:

Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blyth
Co., Inc. and The First Boston Corp. (jointly); Smith,
Barney & Co.
V'-cf-v v
'

&

Long Island Lighting Co.
April 20, Errol W. Doebler, President, announced com¬
pany
contemplates later this year to offer probably

stock¬
one-for-eight basis. Proceeds—
Underwriters—May be Blyth %
Co. Inc., The First Boston Corp. and W. C.
Langley &
Co. (jointly).
holders, probably
For

on

a

construction.

new

was

issue

an

reported that the company

of bonds late in.

1954.

may

issue an<t.

Proceeds—To retire

$24,610,000 Atlanta. Knoxville & Cincinnati Division 4%,
1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive*
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros. & Hutzler (jointly).
bonds due May

* Maine Public Service Co.

May 10 it

reported company plans early registration
30,000 shares of cumulative preferred
(par $20). Proceeds—To repay bank loans and for
construction. Underwriters—Merrill Lynch,
Pierce,

be received

new

Fenner
New

was

&

Beane

and

Kidder, Peabody &

Co., both of

York.

Merritt-Chapman & Scott Corp.
April 23 it was announced company plans to offer ad¬
ditional

common

stock

holders of record June

(with
on

(about 281,432 shares) to stock¬

25, 1954

on

a

one-for-five basis

oversubscription

privilege); rights to expire
Proceeds—For expansion and working cap¬
Underwriter—None.
an

July 19.

ital.

Metropolitan Edison Co.

about June

15.

.

.

was reported company may sell in
1954 about
$3,500,000 first mortgage bonds due 1984. Proceeds—For
construction program.
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart

& Co.

Inc.; White, Weld & Co.; Kidder, Peabody & Co.
(jointly); Kuhn, Loeb & Co. and Salo¬
Bros. & Hutzler (jointly).

and Drexel & Co.
mon

Montana-Dakota Utilities Co.
March
and

17

sell

bonds.

.

tive

it

late

was

reported that company plans to issue
some additional first mortgage

this^ year

Proceeds—To repay bank loans and for

struction.

Corp. and Carl M. Loeb, Rhoades & Co. (jointly); Stone
& Webster Securities Corp. wids—Tentatively expected
to

was

-Dec. 16 it

ir Gulf States Utilities Co.

May 7

on

on
authorizing an issue of 100,000 shares of cumula¬
tive preferred stock (par $100), and to provide that this
stock may be issued, without first being offered to com¬

stock

Co. (6/22)

Gulf Power

Stuart

Meeting—Stockholders

financing.

statement of about

„

Edison Co. of New York,

Corp.

new

Libby, McNeill & Libby

sell

that the company may find

149,739.35 of $5 par value.

April 20 it

Securities

April 27 aprpoved

Nov. 12 it

now

an

15.

Louisville & Nashville RR.

Granby Consolidated Mining, Smelting
& Power Co., Ltd.
was

(jointly); The First Boston CoiftJp^
Bids—Expected to be received up to
June

on

about 700,000 shares of common stock to
commop

Glass

Co.; Chas. W. Scranton & Co., and Estabrook & Co.

Bonds may

to

convertible

150,000 to 250,000 shares and the authorized

March 23 it

•^Columbus & Southern Ohio Electric Co.
April 29 it was announced company plans to raise $15,—
'000,000 this year to assist in financing its construction
program which is estimated to cost $23,100,000 in 1954.
JLJnder writer—Dillon, Read & Co. Inc., New York.

7 it

voted

authorized

stock

pose—The
the

Equitable

mon

15,000

stock from

spay a bank loan of $25,000,000.
Underwriter—To be
'determined by competitive bidding.
Probable bidders:

}Dec.

stockholders
the

Corp.r
Pierce,

20

First Boston Corp. and Tucker, Anthony & Co.

System, Inc.

additional $40,000,000 of

i5n 1954.

from

for

Columbia Gas

27

increase

Lynch,

(jointly); Glore, Forgan & Co.; Blyth & Co., Inc.

April 23 it

General Precision Equipment Corp.

April

Securities

Merrill

and The First Boston Corp.
(jointly); White, Weld & Cow
and Shields & C.o. (jointly); Harriman
Ripley & Co., Inc.,.

Acceptance Corp.

it

22

Union

and

Kansas City Power & Light Co.
March 8 it was announced that company may sell in thar
latter part of 1954 $16,000,000 first mortgage bonds. Pro¬

Corp.

(jointly).

near

Co.;

Brothers and Bear, Stearns & Co. (jointly); Kuhn, Loeft
& Co., Salomon Bros. & Hutzler and Union Securities

company plans registration,
$4,000,000 convertible debentures
due 1984 (with warrants). Underwriter—Paine, Webber,

in

(EDT)

a.m.

&

Hutzler

&

Beane

—
To repay bank loans and for new construction..
Underwriters—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman

Co.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
Beane; Glore, Forgan & Co. and Harriman Ripley &

March

&

ceeds

Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld

and unissued

announced company has

was

Peabody

Bros.

Fenner

—

•Corp.; Merrill Lynch, Pierce, Fenner & Bean<\ On April
23, last year, the road rejected the only bid made of
'.98.05% for a 5 %% coupon by Halsey, Stuart & Co. Inc.
and Union Securities Corp. (jointly).
/;■

Kidder,

Beane

on

plans to sell around

For construction program.
Underwriters—'To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; White, Weld & Co.; Glore,
Forgan &

Salomon

General

Chicago Great Western Ry.
26, the ICC dismissed the company's application
for exemption of an issue of $6,000,000 collateral trust
bonds due Nov. 1, 1978 from competitive bidding. Pro¬
ceeds
To repay bank loans and for capital improve¬
ments.
Underwriters—May be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.
and Union Securities Corp. (jointly); Kidder, Peabody
& Co. and White, Weld & Co. (jointly); The First Boston
Feb.

For

—

announced company

Inc.: The First Boston Corp.; Lehman Brothers; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &

Co. Inc.

shares.

new

(first to common stockholders), Kidder,
Co. and Merrill Lynch, Pierce, Fenner &

holders

William F. Wyman, President, reported that
expects to sell $5,000,000 of convertible pre¬
ferred stock late in the second quarter of 1954, but that
details of the offering are not available at this time. Pro¬
ceeds—For construction program. Underwriter—May be
determined by competitive bidding. Probable bidders:
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly);
Harriman Ripley & Co. Inc.; Coffin & Burr, Inc. Meet¬
ing—Stockholders
will
vote
May
12 on
increasing

April

For

Michigan Electric Co.

was

•
Jersey Central Power & Light Co. (6/15)
May 6 company asked SEC permission to issue and sell
$6,000,000 first mortgage bonds due 1984.
Proceeds

summer

Proceeds

announced company intends to offer and

Stockholders

approving preferred stock financing.

bonds—Halsey, Stuart & Co. Inc.; Union Securities
Corp., Goldman, Sachs & Co. and White, Weld & Co.
(jointly); The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb &
Co.; (2) for preferred—The First
Boston Corp.; Smith, Barney &
Co.; Lehman Brothers;
Union Securities Corp.

Florida Power Corp.

of

on

For

March 27, it was announced
ance

Securi¬

—

scription by its stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock (par $10) on the
basis of one new share for each 26 shares held; rights to
expire on June 16. Price—$50 per share. Proceeds—To
increase capital and surplus. Underwriter—None.

financing late this

Webster

November, 1954, an issue of about $16,500,000 first mort¬
gage bonds due 1984 and 40,000 shares of cumulative*
preferred stock (par $100).
Underwriter
To be de¬
termined by competitive bidding.
Probable bidders: (1>

plans to offer for sub¬

common

9 it was

Indiana &
Jan. 27 it

Offering

sell around the middle of 1954 an issue of $4,000,000 firs\

Dec.

will vote June 11

—Expected not later than Oct. 1, 1954.

12

&

ly expected to be received about June 15.

April 30 trustees authorized issuance of additional com¬
mon stock (par $10) to present stockholders on a basis
not greater than one new share for each 12 shares held.

First National Bank of Toms River, N. J.

Stone

bmuCfs:

Corp.; Lehman Brothers &lia1 jD^Vhtable Securities;
Corp. (jointly); Kuhn, Loeb & Co.; 61or6Foi
&
Co. and W. C. Langley & Co.
(jointly). Bids—Tentative^

Ripley & Co., Inc.

Proceeds—To pay off $2,000,000 of bank loans.

Probable

bidding.
ties

Eastern Utilities Associates

Jan

Central Hudson Gas & Electric Corp.

Halsey,- Stuart

Inc.; The First Boston Corp.; Glore, Forgan &
Co.; Kuhn, Loeb & Co., Union Securities Corp. and A.
C. Allyn & Co., Inc. (jointly); White, Weld & Co.; Drexel
& Co. and Equitable Securities Corp. (jointly); Harri¬

23

shares to 5,000,000 shares and the

A Gulf States Utilities Co. (6/15)
May 7 it was announced company proposes to issue amt
sell 160,000 shares of preferred stock (par $100). Pro¬
ceeds—To redeem 50,000 shares of $4.50 dividend pre¬
ferred, 60,000 shares of 1949 series $4.40 dividend pre¬
ferred and 50,000 shares of $4.44 dividend preferred
stock. Untie* V,Titer—To be determined by competitive

Co.

&

man,

Carrier Corp.
Feb.

(2133)

The Commercial and Financial Chronicle

new con¬

Underwriter—To be determined by competi¬

bidding.

Probable

bidders:

Halsey, Stuart

Continued

on

&

Co.

page 46

46

The Commercial and Financial Chronicle...

(2134)

Continued

Pioneer

from page 45

Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
Lynch, Pierce,iFenner & Beane (jointly); Blair, Rollins
& Co. Inc.

,

■

>

April 1 it was reported company plans to offer about
400,000 shares of capital stock (no par) for subscription
by stockholders later this year or early next year, sub¬
ject to approval on April 29 of a proposal to increase the
capital stock from 4,000,000 to
6,000,000

authorized

Proceeds—For

construction.

new

Underwriter—

Dillon, Read & Co., New York, handled secondary offer¬
ing in 1943.
•

New

April
its

England Electric System
it

29

stockholders

common

stock

on

announced

was

1-for-10

a

common

program

of subsidiaries.

Fall

next

basis.

9,018,824

shares.

plans

company

There

additional

are

Proceeds

—

Carl

M.

RhOades

to

common

For construction

Underwriters

Loeb,

offer

outstanding
—

mined by competitive bidding. Probable
& Co., Inc., Lehman Brothers and Bear,

(jointly);

to

To

be

deter¬

bidders: Blyth

Stearns & Co.

Co., Ladenburg,
(jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld & Co. (jointly).
&

Thalmann & Co. and Wertheim & Co.

New
Dec.

Jersey Power & Light Co.

16

it

reported this company tentatively plana

was

issue and sale in

1954 of about

$3,000,000 first mortgage

bonds due 1984.
new

Proceeds—To repay bank loans and for
Underwriters—To be determined by
bidding. Probable bidders: Halsey, Stuart

construction.

competitive
&

^

Co.

Inc.; Kuhn, Loeb & Co.

and

Lehman

Brothers

jointly); Equitable Securities Corp.; Union Securities
Corp. and White, Weld & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane.
New
Feb.

8

Orleans
it

Public

Service

Inc.

was

reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late this
year.
Underwriters—To be determined by competitive

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Union Securities Corp. and
Harriman Ripley & Co. Inc. (jointly); Lehman Brothers;

Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.; White, Weld &
Co.

ir New Orleans

May 6 it

Public

Service

announced

was

Inc.

company

has filed

a

proposal

with the SEC to issue and sell not to exceed
160,228 ad¬
ditional shares of its common stock

stockholders

mately each

on

the basis of

one

shares held.

seven

(no par) to

common

share for

approxi¬

new

Of the total

number of

shares

outstanding, 1,059,901 shares (95.255%) are owned
by Middle South Utilities. Inc., the parent. Price — $25
share. Proceeds
For property additions and im¬

per

—

provements.

Underwriter—None.

Northern States Power Co.
Feb. 8 it
and

was

sale of

Underwriters

—

To

bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Lehman Brothers and
Riter & Co.
(jointly); Smith, Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner &
Beane,
Kidder, Peabody & Co. and White, Weld & Co.
(jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
Wertheim & Co. (jointly).
ders:

of

$20,000,000
debentures and 300,000 shares of
preferred stock (par
$50) and increased the authorized common stock from
3,404,135 shares to 5,500,000 shares. Proceeds—To com¬
plete certain acquisitions and to repay short-term bor¬
rowings. Underwriter—May be Allen & Co., New York.
Pembina Pipe Line Co.

April 14 it
the

was

right to

announced

obtain

(Canada)

permit to
line to transport crude oil from the Pembina
Oil Field
in Alberta to Edmonton.
Financing will be handled
jointly by Mannix Ltd. of Calgary', Dome Exploration

(Western) Ltd. of Toronto, and Carl M. Loeb, Rhoades

& Co. of New York.
«

authorized

common

1,000,000 shares.
the

additional

»

No

stock

stock

a

have

proposal to

from

immediate
been

increase

740,000 shares
plans to issue any
announced;.

to

of

Under¬

writers—Harriman Ripley & Co.
Inc., and Smith, Barney
& Co., New York.

To refund

series F and series H bonds.
Underwriter—
To be determined
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.;
Glore, Forgan & Co.; Kuhn, Loeb & Co.

Offering—Ex¬

or

August, 1954.

Philadelphia Electric

Co.

(6/9)
April 30, company announced it will file with
the SEC
Pennsylvania P. U. Commission, within the next
few weeks, registration
statements covering a
proposed
offering of approximately 900,000 shares of
and the

common

stock to common
stockholders of record June
7, 1954 on
the basis of one new share
for each 12 shares held
(but
not the $1 dividend
To be named later.

Underwriters

—

preference common stock). Price
Proceeds—For new construction etc

Drexel

&

Co., Philadelphia, Pa., and
Morgan Stanley & Co., New York.




of Colorado

reported company plans to finance

was

construction

its

Corp.

through temporary bank
loans, with permanent financing delayed until later in
the year. Previously, the company had planned to float
an
issue of $15,000,000 first mortgage bonds, due 1984,
early in 1954. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., Kuhn, Loeb & Co.; The First Boston Corp.; Harris,
Hall & Co. Inc.; Harriman Ripley & Co., Inc. and Union
Securities Corp.
(jointly); Lehman Brothers; Kidder,
Peabody & Co.; Blyth & Co., Inc. and Smith, Barney &
Co, (jointly).
•

Public

Service

Co.

of

New

Sutton
Feb. 15 it
later

<•;

•••

'

Transmission

'•

Co.

construction. Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey. Stuart &
Co. Inc.; Stone & Webster Securities Corp. and White,

Hampshire

Weld & Co.
Texas

(jointly).

Eastern

Co.

\

Transmission

stockholders

27

authorized

approved

(par $7).

Corp.
a

proposal

from

stock

common

10,000,000 shares
&

7,500,000

increasing
shares to

Underwriter—Dillon, Read

Inc., New York.

Texas

>

International

Sulphur Co., Houston, Texas
April 28 it was reported company plans to do some addi¬
tional financing in the near future.
Underwriter—May
be Vickers Brothers, New York.

negotiated basis.

Toledo

Puget Sound Power & Light Co.
April 5 the directors approved a program

Edison

Co.

April 20 stockholders voted to increase the authorized

designed to
refund the company's long-term debt. Bidders may in¬
clude Halsey, Stuart & Co. Inc.; Lehman Brothers; Stone
& Webster Securities Corp.

cumulative preferred stock from 300,000 shares to 500,000

shapes. The company does not plan to do any financing at
present. Underwriters—The First Boston Corp., New
York, and Collin, Norton & Co., Toledo, Ohio.
i

it Resources of Canada Investment Fund, Ltd.
April 27 the SEC authorized the company to register as
an investment concern and to make a public offering of

Trans-Canada Pipe Lines, Ltd.
was annouced that the cost of the
building

March 26 it

of the proposed

cross-Canada gas pipeline would be ap¬
proximately
$292,000,000, which would be financed
through the issuance' of about $36,500,000 each of com¬
mon stock and debentures and
$219,000,000 of first mort¬

securities in the United Slates.

Rockland Light &

Power Co,
April 1, Rockwell C. Tenney, Chairman of the Board, an¬
nounced that the 1954 construction program, estimated
at $14,000,000, will require further financing.
Common
stock financing to stockholders in 1953 was underwritten
by Merrill Lynch, Pierce, Fenner & Beane. An issue of

gage bonds.

Underwriters—Lehman Brothers and Wood,

Gundy & Co., Inc., both of New York.
Transcontinental Gas Pipe Line Corp.
March 16 it

$8,000,000 bonds were also sold last year at competitive
bidding, with the following making bids: Halsey, Stuart
& Co. Inc.; Equitable Securities Corp.; Kuhn, Loeb &
Co.; Stone & Webster Securities,£orP4 The First Boston
Corp. and Salomon Bros. & Hutzler "(jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.

to

do

bank

reported company plans later this year
permanent financing to repay temporary
to pay for new construction esti¬

was

some

loans necessary

mated to cost about

$11,000,000 for 1954. Underwriters—
White, Weld & Co. and Stone & Webster Securitiet
Corp., both of New York.
4
Tri-Continental

Joseph Light & Power Co.

Corp.

March

March 30, C. A. Semrad,

President, announced that the
company may raise new money this year through the
sale of $1,000,000 first mortgage bonds or from tempo¬
rary bank loans for its 1954 construction program, which,

of

30; stockholders voted to reclassify 500,000 shares
presently authorized but unissued $6 cumulative pre¬

ferred

stock, without par value, into 1J)00,000 shares of a
of preferred stock, $50 par value, making
possible a refunding of the outstanding $6 preferred
new

it is

estimated, will cost $1,661,000. Underwriters—May
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Smith, Barney & Co.,
and Glore, Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.

class

stock

at an appropriate time, when conditions warrant.
Underwriter—Union Securities Corp., New York.

determined

ders:

•

Vanadium Corp. of America

April,2Q it

(6/3)

reported company plans to issue and sell
convertible debentures. Proceeds—To re¬

was

$5,000,000 of

Diego Gas & Electric Co.
reported

Gas

new

body & Co. and Blyth & Co., Inc. (who made the only
bid in June, 1952, for the 5.40% issue, which was re¬
jected); R. W. Pressprich & Co. and Spencer Trask &
Co. (who were awarded that issue in July, 1952, on a

pay bank loans and for
Underwriter
Kidder,

working capital and expansion.
Peabody
&
Co., New York.
Registration—Expected on May 14.

plans to offer late
(probably first to stockholders) 800,000 shares of
additional common stock.
Underwriter
Blyth & Co.,
Inc., San Francisco and New York.
was

8.

Jan. 27 it was reported company plans issuance and sale
of $20,000,000 of debentures in June and $25,000,000 of
first mortgage pipe, line bonds in July. Proceeds—-For

the

it

June

A.)
Corp., Wichita, Kan.
reported company may do some financing
year, either public or private.
Business—Aii
■•'.I

April

28

on

(O.

Tennessee

outstanding 50,000 shares of 5.407© preferred stock
and for new
construction.
Underwriter—If through
competitive bidding, bidders may include Kidder, Pea¬

San

received

was

this

fund

be

be

to

circulating equipment, etc.

preferred

7

Bids—Expected

program

stockholders approved a proposal to
increase
the
authorized
preferred
stock from
160,000 shares to 300,000 shares, of which it is planned
to issue not in excess of 75,000 shares.
Proceeds—To re¬
May

company

—

in 1954

—

Scott

April

the

West Coast Telephone Co.
April, 13 stockholders voted to create

Paper Co.

27

creased

shares

stockholders

the authorized

shares

and

approved
common

the

proposals

stock

authorized

from

which

of

May
May

10

it

14

on

announced

stockholders

•

West

will

vote

West Texas
March 8

offering to stockholders in
stock financing was not under¬

Southern New England Telephone Co.

Underwriter—None.

Southern New England

March 26

it

Telephone Co.

reported company plans issuance and
sale of about $15,000,000 debentures. If
competitive bid¬
ders may include
Halsey, Stuart & Co. Inc.; Lehman
Brothers and Salomon Bros. & Hutzler
was

(jointly); Kuhn,
Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane; White, Weld & Co. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co. Offering
—Expected in May or June.
Loeb

&

for

Co.,

Inc.,

(par

$25)

construction

San

Fran-

'

>.

be

to

sold
a

to

the

natural

4,100,000 shares of
public. Proceeds—To

gas

pipe line from the

it

was

Utilities Co.
announced

Salomon
Bros.
&
Hutzler
(jointly); Merrill Lynch,
Pierce, Fenner & Beane; Equitable Securities Corp.;
Glore, * Forgan & Co.; Kuhn, Loeb & Co. and Lehmap
Brothers (jointly); Kidder, Peabody &
Co.; The First
Boston-Corp.

stock

written.

(par $25).

and

company plans to refund its
$5,500,000 bank loan i'n the Spring of 1955 through the
issuance and sale of first mortgage bonds. Underwriter—
To be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and

new securities.
Underwriters—May be Hut¬
Co., Pueblo, Colo.; and Boettcher & Co. and
Bosworth, Sullivan & Co., both of Denver, Colo.; who

26 it was reported
company, in addition to de¬
benture financing, plans to issue and sell to its stock¬
holders about $10,000,000 of additional common stock

&

Canadian Peace River field to western
Washington and
Oregon. Underwriter—Eastman, Dillon & Co.. New York.

on

March

loans

Transmission Co.

finance construction of

&

common

bank

issue of 100,000

stock

long-term debentures and
stock

common

and sale of

common

Coas^

ordinated

creating an issue of 50,000 shares of pre¬
(par $50) and on increasing the authorized
common stock from
1,000,000 shares to 1,200,000 shares.
It is planned to raise about $3,500,000
through issuance

1948; subsequent

repay

an

preferred

Oct. 14 it was announced that company now plans to
issue $29,000,000 in l-to-S^-year serial notes; $71,000,000
in 20-year, first mortgage bonds; and $24,440,000 in sub¬

ferred stock

underwrote

cumulative

Underwriter—Blyth
cisco, Calif.

from

was

$1.28

program;:"

5,000,000 to

indebtedness

of

Proceeds—To

in¬

$25,000,000 to $50,000,000.
The
company has no specific financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953, was underwritten by
Drexel & Co., Smith, Barney & Co. and Merrill
Lynch,
Pierce, Fenner & Beane.
company

chinson

★ Peoples Gas Light & Coke Co.
May 10 it was reported company plans the sale of
$40,000,000 first and refunding mortgage bonds. Proceeds—

pected in July

& Co.

it Southern Colorado Power Co.

Pennsylvania Glass Sand Corp.
April 27 stockholders approved
the

1954

10,000,000

has been granted
build a 72-mile pipe

company

a

Underwriters—To be determined by
bidding. Probable bidders: Halsey, Stuart
Inc.; Equitable Securities Corp.; Lehman Brothers;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Merrill Lynch,
Pierce, Fenner & Beane and Union Securities Corp.
(jointly); Harriman Ripley & Co. Inc.; The First Boston

competitive

Co. stock.

Service Co.

April 12 it

April

issuance

Gas

Public

construction.

new

and

Interstate

St.

approximately $20,000,000 of first mortgage

bonds due 1984 in October of 1954.
be determined by competitive

disposal of its holdings of 769,721 shares of Pioneer

384,860 shares of Westpan Hydrocarbon Co.
Corp., New York,
underwrote recent sale of Sinclair's holdings of Colorado

(Minn.)

reported company is planning the issuance

Ogden Corp., New York
<2)ft.pril 1 stockholders approved

the

stock. 'Underwriter—Union Securities

National Fuel Gas Co.

shares.

•

Southwestern Gas & Electric Co.
(6 8)
May 6 company applied to SEC for permission to issue
and sell $10,000,000 first mortgage
bonds, series F, due
May 1, 1984. Proceeds—To refund bank loans and for

v

March 26, P. C. Spencer, President of Sinclair Oil Corp.,
announced that Sinclair has under formulation plans for
stock

.

-

i

Co.

Natural Gas

Thursday, May 13, 1954

i

*1

Western Pacific RR. Co.
March

10

i

applied to the ICC for exemption
competitive bidding on its proposed $22,500,000
.debenture issue.
The 30-year
5%
income securities,
would be offered in exchange for 225,000 of
$100 par
preferred stock, of the more than 300,000 shares out¬
standing. The company plans to offer $100 of deben¬
tures, one-fifth of a share of common, and an undeter¬
mined cash payment for each share of
preferred stock
company

from

and then redeem the then

remaining outstanding 83,211

shares of preferred stock.

Westpan Hydrocarbon Co.
See Pioneer Natural Gas Co. above.

>

Number 5324

179

Volume

...

The Commercial and Financial Chronicle

(2135)

shares of $100 par preferred stock

tentatively
fering.

for

slated

Corp.

will market $20,000,000 of
30-year first mortgage bonds the

Bidding for

day.

this

one

promises to be keen.
Bankers

also

tunity

on

50,000

shares

will

of

filiated

in

the

market

the investment
week provided

past

further -evidence of

growing

By

fidence on the part of the under¬

fare

writers and dealers as regards the
outlook for the new issues that

the

been

have

V

is

There

sition

the slow side.

on

definitely

dispd-

less

shows

tendency

a

of

because

basis

given

a

undertaking

to

lag

difference

a

pricing

in

points

few

a

ideas

underwriters and

tween

little

a

of

potential

buyers.
On

the

the contrary

it appears that

"professionals"

tributing business
and

willing

confident

in

take

to

the dis¬
bullish

are now

they will be able
to sell bonds later when, as they
•expect,
t he
seasoned
market
comes up to current pricing ideas.
taking
in

recent

most

words,

in

bal¬

improvement

an

in

the

level.

general

that

bids

for

CHICAGO,

been

customarily "left
in the pot" for the major sponsors
to dispose of. usually by breaking
the

syndicate agreements and
letting the issues seek their own
levels.

Mayfield

creates

procedure

which

American

will

of a "corporate blue
list," but the observation on that
is
that
"its
counterpart
never worried the municipal end

score

of, the business very much."
Week

week's

Next

prospects
from

of

course,

The

to

of

calendar

new

appears comfortable
point of view provided,
you are in on part of

issues is

new

but, at the same time,
dimensions which promise

of

strain on the
ability of underwriters to handle
put

real

any

it.
/-

single

Largest
which,

undertaking
will

Tuesday,

on

for

$65,000,000

first

and

refunding

is

of

and

Canadian

this

has

J.

I.

Both

NOTICES

A

bonds.

Two

Blyth

bring

market

to

$25,000,000 of first mortgage and
refunding bonds put up for bids
by Virginia Electric & Power Co.,
to provide funds for payment of
notes and for new construction.
Five

'groups already have indi¬
their

cated

intentions

Co.,

&

(May

day

of

1954.

No

Stock

dividend.

action

THE

a

May

taken

was

B.

the

on

(10c)

June

12,

1954, to

of record
June

on

G.

at the

stock-

close of

1, 1954.

GREENBGRGH,

Treasurer.

COMPANY

v

A

quarterly
50(f per

regular
of

••••••••»

■■■i

w. atkinson, Treasurer

e.

PACIFIC

•

FINANCE CORPORATION

•

:

DIVIDEND NOTICE

:

A regular quarterly dividend of 50 cents per share on

•

May 11, 1954.

Common

PETERS, Secretary.

At

Inc.

an

publicly

of 4.08% cumula¬
convertible preferred stock

($100 par value) of Allis-Chalmers
Manufacturing Co. at $102 per

share, to yield 4%.
The preferred stock is conver¬
tible any time prior to redemption
at the conversion price of $60 per
of

common,

subject to ad¬

justment.
from

Proceeds
will

be

applied

the

to

Fuel

Colorado

New

Board

York,

N.
Directors

of

of

The

Fuel

Colorado

Common

preferred
of

the

at

record

folk

of

holders

to

May 25, 1954.
additional share
shares of com¬
mon stock held on the record date.
Scrip
will
be issued in
lieu of fractional
shares.
Arrangements are being made so that
stockholders
may,
without
expense,
purchase
or
sell
scrip certificates
until December 31,
1954
at
current market prices.

at

>

on

Co. makes

a

industrial, agricultural and earth-

machinery and
eouinment. It has 12 plants in the U. S.
as well as plants operated by sub¬
sidiaries in Canada and E'ngland.
moving

In

1953

the

company

had

con¬

$6.58 per common share on
$514,574,000.
Dividends
of $4 oer common share were paid
000,

or

of

sales

in

Board of Directors today declared a
of ten shillings per share on the
Ordinary Shares- oi the Company payable
June 1, 1954.

has

declared

been

dend

(35) cents per
of 1954

for the second quarter

share

the

on

common

and the regular quarterly divi¬

on

the

5% % cumulative preferred
both payable
to
stockholders of

of this company,

stock

June

1954

10,

record

close

the

at

of

business

of Sixty-five Cents

share

per

said dividend

on

June 11,

1954 to

of

this

the holders of record at the close of business
on

June 4, 1954 of American shares issued

June

on

(65$)

the capital stock
payable

Corporation,
1954

10,

has

Directors

second-quarter divi¬

a

of record May

to

stockholders

21, 1954.

under the

terms of the Deposit Agreement
June 24, 1946.
The dividend will
amount
to approximately $1.40 per share,
subject, however, to any change which may
occur
in the rate of exchange for South

M.

dated

Africa

funds

South

of

URQUHART,

W.

Treasurer.

May 6,1954

prior to June 1, 1954. Union

Africa non-resident shareholders
of 7.2% will be deducted.

tax at the rate

By Order of the Board of Directors,
F. A. SCHECK, Secretary.

on

Drewrys Limited U. S. A., Inc.

New York, N.

Y., May 5, 1954.

South Bend,Indiana

T. E.

C. L. Barr Co. Formed
OKLAHOMA

Okla.—

CITY,

Barr

The UNITED Corporation

technical oil field services

Co., 541 South¬
Grand Boulevard, to engage
L.

JEANNERET,

Secretary and Treasurer

Clarence L. Barr has formed Clar¬

&

The Board of Directors has

IAN E-WE LIS

securities business.

COMPANY

declared

a

semi-annual

dend of 10 cents per

Dividend No. 68

Irwin Chernick Opens

The

Directors

have

the COMMON

declared

a

(Special to The Financial Chronicle)

PAWTUCKET,
Chernick
rities

dend

The Directors authorized the distribution
of the

May 25, 1954.

1953.

a

declared

No. .'10

of

Board

The

Limited

dividend

A dividend of thirty-five

DODGE

PHELPS

The

stock,

solidated net earnings of $21,944,-

1*•••••••••••••••••*

Self, President

Dividend

DBEWRYS

»
•

•

O'okiep Copper Company

Secretary.

incurred to carry

diverse line of power,

Secretary

•

CORPORATION

$35,000,000 of the $50,000,000 cur¬
rent bank loans

T

•

McGREW,

C.

D.

^

*

Cecil M.

Shareholders will receive one
of common stock for each
40

payment

^

the close of business

June 1, 1954.

record

of

stock

common

business

of

close

of record

b. c. Reynolds.

•

June 15, 1954, to stockholders

on

per

the

»

May 14, 1954, was declared
by the Board of Directors on
May 5, 1954.

Railway Company

a
quarterly dividend
forty-two and one-half cents
(42y2i) per share on-tbe-common
stock of said Company, payable

8,
1954.
The Board of Directors of
corporation also voted today to declare a
cent stock dividend on the outstanding
common stock
in lieu of a cash dividend.
The
common
stock
dividend
is
payable June 22,
at

Southern

of

June

1954,

»

have declared

the

2l/2

m

Dividend

•

the common stock ($10 par
value), payable June 1,1954,
to stockholders of record

The Board of Directors of Nor¬

business

of

close

»

•

and

Corporation declared the regular quarterly
on
the
series
"A"
$50
par
value
preferred stock in the amount of 62'/2 cents
per share and also the legular quarterly divi¬
dend on
the
series
"B"
$30 par
value pre¬
ferred stock in the amount of 68% cents per
share,
both
payable on
June
30,
1954,
to
of

•

m

dividend

stockholders

•

«

Directors of
and Iron Corporation held
Y.
on
May
il,
1954 the
of

Board

the

of

Iron

headed

offered

12)

The
in

meeting

a

•

•

RAILWAY COMPANY

FUEL AND

COLORADO

is

I

R.

engaging

business

from

—

Irwin

a

secu¬

in

offices at

STOCK,

i

The Board of Directors of Rome

pay¬

Cable

able June

of
holders of record May 19,

69

11, 1954 to stock¬

business May

Secretary-Treasurer

has

Dividend

declared

No.

61

for

35 cents per share on the Common

Capital Stock of the Corporation,
payable July 1, 1954, to hold¬

24, 1954.

ers

Wm. M. Hickey,

ness

President

««

Corporation

consecutive

1954.

WILLTAM A. MILLER

Exchange Street.

Dividend

Consecutive

61st

divi¬

share on

holders of record at the close

bidding

of

1954.

10,

A quarterly dividend of ten

business

IRON CORPORATION

shares

350,000

of record at the close of busi¬
on

June 10, 1954.

Gerard A.

May 12, 1954

Weiss, Secretary

Rome, N. YMay 7, 1954

DIVIDEND NOTICE

for this issue and there is the pos¬

sibility that

ALEXANDER, Secretary.

NORFOLK SOUTHERN

underwriting group which yester¬

in

Tap

on

Broadway, New York G, N. Y.

\

'

will

61

1954.

transfer books will remain open.

1954

Racine, Wis., May 10,

dividend of $1.75 per share upon the out¬
Preferred Stock of this Company has
declared payable July 1,
1954, to holders
record
at
the
close of
business June 12,

been

WM.

4.08% Pfd. Stock

west

Monday

17,

on the Capital Stock of this Company,
payable June 15, 1954, to stockholders
of record June 1, 1954. The stock

standing

Allis-Chalmers Mfgr

ence

Issues

May

share has been declared

(Incorporated)

undertaking.

Blyih Group Offers

open

business.
Other

on

of

payable

associated

become

Case Company

re¬

bankers

30-year

set to compete for this

groups are

a

share

per

stockholders

1954.

dividend

that of Pacific Gas & Electric Co.,

bids

the close of business
H.

declared

cents

to

•

formidable
not

has

fifty
1954

cents per share has been declared

D.

larger inventories and receivables
working capital.
Allis-Chalmers
Manufacturing

Ahead

aggregate of

of

15,

JOHN

and to replenish

business in sight.

the

."C.

any

Directors

June

& PLATINUM COMPANY

LION OIL

the

carry

expected to be in the market

for

something

Good

of

dividend
on

D.

Arthur

—

DIVIDEND

outstanding obligations and

share

Current

Board

7,

May

Nicolaus

111.

NOTICES

SOUTH AMERICAN GOLD

Singer Manufacturing
Company

record at

Oreg.—Bernar H.

With Stifel,

sinking fund de¬

new

replenish general funds.

tive

recently such unsold bal¬

had

The

payable

(Special to The Financial Chronicle)

on

Until
ances

DIVIDEND

holders

■

other

"banking" them for

anticipated

offer

of

Funds raised will be used to

are

Weeks and C. W. McNear & Co.

NOTICES

Seidel, Jr. is now affiliated with
King Merritt & Company, Inc.

early next week, un¬
changed, for $27,new funds.

bentures

arc

unsold

up

The

(Special to The Financial Chronicle)

guarantee of the City of Montreal.

deem

recently with Hornblower &

are

will

It

amount

participations

deals,

dividing

and

ances

their

down

dealers

and

was

position,

a

that

Underwriters

DIVIDEND

quarterly

market

plans
000,000 of

to

He

a

less

be¬

Exchanges.

With King Merritt Co.

trifle, the Montreal Trans¬
portation Commission will be in

right now to cut loose and

when

run

bit

a

Variety

of changing the bill of

way

Co., 407
members of

Street,

PORTLAND,
A Little

Street.

&

for

Co.

con¬

Sutro

the New York and San Francisco

pre¬

par

with

Montgomery

oppor¬

bid

to

$100

FRANCISCO, Calif.—Jo¬
seph F. Poeschel has become af¬

Stock

have

Wednesday

Stifel, Nicolaus & Co., Inc.,
West Adams

SAN

ferred of Missouri Public Service

Happenings

105

(Special to The Financial Chronicle)

New York State Electric & Gas

same

with

With Sutro & Co.

of¬

public

47

'

sixth banking ag¬

gregation will be in the running.
Public

Co.

Service

Gas

88®

249,942

383?

Electric

Wednesday

on

&

has

®88

I® 83

Manufacturers of

ftf

88®

MEETING

NOTICE

Common and Preferred DIVIDEND NOTICE

38038

Wall &

3838

May 3,1954

0838

THE NEW YORK CENTRAL

W®

RAILROAD COMPANY

Floor

3838
88 2?

AMERICAN

The Board of Directors of the

Tile

Albany, N. Y., April 23, 1954.

mi

The Annual Meeting of the Stockhold¬

33338

of The New York Central

Rail l oad

0383

Company will be held in the

ers

803®

TILING

83®
380 38

®«3

®08

88®

East¬
Daylight Saving Time, for the elec¬

®08

Albany,

New

May 26, 1954, at 12 o'clock Noon,

tion of Directors and three Inspectors
of Election, and the transaction of such
other
business
as
may
be
lawfully

including
action
upon
resolutions proposed by
Stockholders
relating to
cumulative
voting for Directors and change of date
brought before the meeting,

of the Annual Meeting.

Stockholders
P.M.

on

of

30®.

333®
®®
388383

38®
®38
83®
®83

3

o'clock

April 19, 1954, will be entitled
meeting.

to vote at said

By order of the Board of Directors.
RUSSELL T. WALKER,

Secretary.




COMPANY, INC.

83®

Declared May 7, 1954

38888

88®
38 88
® 338

15 cents per share

88®
®8»

333®

88®
88®

.

May 21, 1954

38883
»38

127th

188338

Common

Preferred

Dividend

38®

Record Date

America's OLDEST Name In Tile

Share

Preferred
The Board of Directors has declared
a

regular quarterly dividend of 50c
share

the

Company, payable

®®
888*

883®

1954

to

on

June 1,

Secretary

stockholders of record at

08®

the

38®
®88

17, 1954.

close

of

business

on

May

TEXAS

EASTERN

SHREVEPORT

88®

®%S«8»S38S89Sft®9«3|IS»%i53S35S!S>»%38)8l3»33l8«

Common

the Common Stock of

per

on

Preferred Series $137%'
Stock, 4.75% Convertible Series ... .$1.18%
Stock, 4.50% Convertible Series ... .$1.12%
Stock
.$0.25

Preferred Stock, 5.50% First

DAYTON, OHIO

8580
83®

COMMON STOCK DIVIDEND

Payable May 28, 1954

per

WfX

®05

S3®

Security

AND LIGHT COMPANY

88®

88®

®«8

record. at

8005

88®
®»

THE DAYTON POWER

®88

Armory,

Avenue, in the City of
York, on
Wednesday,

195 Washington

ern

ENCAUSTIC

3850

Company has declared

following quarterly dividends, all payable on
June 1, 1954, to stockholders of record at the close
of business May 12, 1954:
Amount
the

®38

GEORGE SELLERS,

May 7, 1954

Secretary

LOUISIANA

:-Sif

■11
M
m

If

-18

The Commercial and Financial

(2136)

Chronicle...Thursday, May 13, 1954

BUSINESS BUZZ

Business

Washington
Behind-the-Scene Interpretation*
from the Nation'*

Capital

•

#

Man's

And You

f

Bookshelf
WASHINGTON,
the

of

out

mittee sometime around June

will

1

bill

tightening up
on
government-sponsored real
estate mortgage credit — the
direct opposite of the purpose of
come

the

a

Administration

Eisenhower

Another

is

at the Senate
Banking Com¬

predicted

freely
that

C.—It

D.

housing program.
This, of course, is the conse¬
quence
of the Great Housing
'

smaller

the

of

Eisenhower

program

tor easier mortgage

exception

that it

was

were

credit. The
was hoped

that the Federal National Mort¬
gage Association could finance
purchases of a part of its in¬
sured and guaranteed loans out

of funds raised by sale of FNMA
.

debentures,

than from
obligations.

rather

-direct Treasury

However,

members

Committee
xnuch

the

of

point out that inas-

the

most

sweeping (if
as
yet little substantiated)
charges have
been
made
of
xacketeering in the use of FHA
insured
home improvement
as

loans, it would be political fool¬
ishness for the members of the
Committee
up

to

evade

tightening

this credit.

on

the

How

home

credit will

be

mains

be

to

improvement
tightened up re¬
seen.
However,

members of the Committee have

that instead of in¬
total portfolio of a
improvement
the Committee may

suggested

the

suring

recommend1 that
be insured

only

lender

a

shall

percentage

on a

ratio of each individual loan.
In

other

would

the

words,

have

small

a

lender

responsi¬

bility for the soundness of the
loan.
As to FHA-insured real estate

mortgage
members

quiring
to his

;

committee
talking about re¬
builder to swear

loans,
are

every

costs, if not submit to

of mortgage amounts

any excess

his costs.

These

Thus

t

the

most

efficient

point in

no

^cutting down costs to make
bigger profit, and the FHA
tem

of

appraising

cording
real

to

value

its
will

a

house

estimate
tend

ac¬

its

of

to

a

sys¬

be

re¬

threatened

are

Chicago, Chicago, 111. (cloth).

—Sidney Scott Ross—Sidney S.

Housing Goes On
In

1951

kicked
need

than

builder's

normal

profit, everybody shall be

Worries Officials
This
those

who

outlook

keenly worries

Administration

recognize

that

the

bower

Administration

mitted

to

Activity
1,000,000

the

officials

Eisen-'

is

Last

Building

Program

units

housing

of

of
per

production passed
its peak under the Korean de¬
fense emergency, and is sliding
down.

But

the

under

Housing Act.

housing was "pro¬
grammed" under the act. About
of

has

it

been

are

required to return to normal
prudent credit policies in both
the
housing construction and
improvement lines? They fear
that the

goal of 1,000,000 units

of

housing construction
jeopardized.
They
when

may

be

Eighty - eight per
such housing has been

of

cent

Hence,s all the housing con¬
templated to meet the needs of
the

Korean

defense

Humphrey Hints More Excise
Taxes

Treasury
Secretary
Hum¬
phrey, in rejecting the proposed
constitutional amendment limit¬

ing any rate of Federal taxation
to 25%, hinted that the Treas¬
ury would come up with a pro¬
posal for a greater dependence
upon
excises for Federal rev¬
ual

Corporation and individ¬

income

better

taxes

than

provide

now

80%

of

Federal

taxes.

even

think

more

of

in

result
break-down.

having his
financial

a

retary said
present, it

if

that

enacted

would

at

occasion

of

plated,

the

big

any

shift

is

revenue

Federal

contem¬

sales

tax

mind, for this is rated
the
only
untapped
the govern¬
ment already taxing excises se¬
lectively at a heavy rate.
about

as

form of excise tax,

Mr.

Humphrey

constitutional
letter

rejected

amendment

this
in

a

to Chairman Langer

(R„
of the Senate Judiciary

D.)

changes.

to

revenues

around

$49 billion.
At

$49

,

billion,

revenue

would

to

12

some

the

Federal

still

to

amount

times

13

pre-

lead

to

may

well

proposals

the

in

studies

relative

But the

for changes
significance of

sources

of

systematically, and existing
of

sources

agreed

revenue

until

cannot

substitutes

be

"This

can

the

through

approach

ment

in

could

at

present.

constitutional

a

any

not
and

statute

books

amend¬

probably

case

be

states

adopted

be

put

before

36

by

the

on

five

some

'

Hence

Mr:

Humphrey's solid
unqualified opposition to

and

such

amendment

an

acted

at

clue

to

the

had

down

three

some

as

any

time

attitude

be

may

tion
for

the

lion,

of

to
or

the

It

Administra¬

contemplates

future

size

down

the

even

diminution

a

the

in

government

of $50

range

bil¬

less.

T-H

Changes

The strategy of the friends of
labor
was
to
enlist - Southern

Democratic
hind

the

conservatives

be¬

shelve

Taft-

Hartley act amendments.
strategy succeeded.

The

When
that
ment

the

to

move

it

became

apparent

Goldwater

restoring

lation

of

good

chance

some

labor

amend¬

State

relations

regu¬

the

of

had

House

passing,

a

would

and

pass

no

such

been

an

turned

in

times

the

proposed part of T-H,

a

the

demoralized

non-

publicans
run"

would

and

vote

many

"break
for

llow H. J. Heinz Manages Its Fi¬
nancial Planning and Controls
—American

Management Asso¬
ciation, Inc., 330 West 42nd
Street, New York 36, N. Y.
(paper), $1.00 to members of

the

Association;

Modern

Management of Capital
Expenditures—American Plan¬

ning Association, Inc., 330 West
42nd Street, New York 36, N. Y.
(paper), $1.00 to members of
the

Association;

Stock

Exchange

such

an

End

Federal

Representative Howard Smith
(D., Va.) has offered a simple
terms

are

checkmate

to

Official

(London

Year-

Stock

Ex¬

Gresham

Would

Federal

non-

change) — in two volumes—
$33.00—Thomas Skinner & Co.„

Encroachment

as

to

and

1954

House,
Old
Broad
Street, London, E.C. 2, England
111 Broadway, New York
6, N. Y.
and

Story of Lucky

all

encroachment

broad

so

future

of

Strike:

The Ro¬

of Tobacco and the story

mance

whose

$1.25

members.

Book

They did not want to take a
chance of its adoption, so lined
up
behind the left-wingers to
put T-H amendments on ice.

bill

non-

I

Re¬

amendment.

Smith

$1.25' to

members.

state

leadership,

frightened that

were

the

<,

Administration.

that

never

the

of

bill

T-H

the Southern conservatives, con¬

being en¬
may
be a

the

Eisenhower

to

of
cigarette manufacturing —
Roy C. Flannagan and Pat Flannagan Hooker — American To¬

bacco

Company, Inc., Ill Fifth*
Ave., New York 3,N.Y. (paper)*.
Timely Notes

on

Instalment Credit

state

—Instalment Credit Commis¬

in respect to
labor
but
in
any
other regulatory field. The bill,
however, would not automati¬
cally end such usurpation of
power, but would only provide

sion, American Bankers Asso¬
ciation,
12
East 36th, Street,.
New York 16,N. Y. (paper), 75£*.

powers

that

not

only
relations,

where

the

states

and

the

Joins Bache Staff
(Special to The Financial Chronicle)

Federal Government regulate in
the same field, Federal power

GREENVILLE, N. C. — Robert
W. Pennell has become connected!

should

with Bache

be
paramount only if
Congress expressly so stated in
enacting any Federal statute.

&

Co.

[This column is intended to re¬
flect the "behind the scene" inter¬

Concession

pretation from the nation's Capital
and may or may not coincide with

We suggest to investors

the "Chronicle's"

own

to

views.]

a

to

Members N.A.S.D.

liberal

return

seeking

and

potential growth

best be obtained

elected

tatives in the

to

Although

amendment

past

>

this purpose

"Civil Rights"

Reublican

that

balanced

tax reform

the proposed

of

base

are

upon.

for

such

revenue.

changes should be made

device

the

Nettled Conservatives Against

"These

Their

sidering

a

of

the "lib¬
they had to

powers,

Roosevelt, against 15 to 16 times
Such

they

restrictive

net

determined

amendment

"Our tax system is under con¬

tinuing study by the Congress
and the Treasury Department,"
the Secretary wrote the Chair¬

erals"

unless

kill T-H amendments.

of

consideration.

man.

a

the

broad

this would force the curtailment

in

to

in

labor's

was

years.

Whenever
sources

amendment's

T-H

loss of $13.3 billion of revenue.
On the basis of forecast yields,
Federal

$1.25

pants pressed!"

were

On the other hand, the Sec¬

emergency

probably will be completed by
the time that particular emer¬
gency has passed into history.

enues.

easily

Association;

members.

"He's

started.

represen¬

siur-on-tools

Congress."

Would Cut Back to $49 Billion

This
are

they

the

completed.

restricted

happens if lenders

ning — American Management;
Association, Inc., 330 West 42nd
Street, New York, 36, N. Y*
(paper), $1.00 to members of

Some 95,000 units

three-fourths

Social

Guides to Modern Financial Plan¬

Defense

defense

of

Department

and

Princeton

housing continues to

built

be

year.

What

of
Eco¬
Institutions,
University, Princeton,
N. J. (paper).
nomic

year

different

Home

Mikesell—International Finance

Section,

year.

com¬

Support

Emerging Pattern of International
Payments, The — Raymond F.

Congress passed the
Housing Act of that

emergency.

Defense

3070 Hull Ave¬
New York 67, N. Y. (paper),
charge.

nue,
no

factory
delfense

war

workers for the Korean

guar¬

anteed costs.

Ross Company,

was

crying

the

about
housing

up

for

fuss

great

a

Committee, which has it under

a

ended Dec. 31, 1953—
of the City of

of Trade

Business Man and His Money, The

N.

make

can

of

the year

Board

Emergency Passes;

that while

nobody

City

the

of

96th annual report for

Defense

placed by the equalitarian idea
more

*

also

Trade

of

Chicago:

with defeat.

comes

builder would have

Board

of mortgages

30 years.

an

audit thereof, and to kick back
over

payments, and
terms on
at

repayment

classes

home

lender's

loans,

down

establish

in one direction, the
recommendations of

Except

Automatic
Merchandising Association, 7 So*
Dearborn Street, Chicago 3, 111,
(cloth), $5.00.
Directory—National

FHA
could
insure
loans to a greater than present
ratio of loans to value, permit

President,

various

1954

Automatic Merchandising:

that, at the direction of the

was

Scandal of 1954.

weight

credit proposal

easy

constitutional

corporation

amend¬

worried

the

Presi¬

dent's proposal to vastly liberalreal estate mortgage credit
if this becomes
necessary as a

ment, limiting
eral

tax

to

any

rate of Fed¬

25%—except in

an

emergency

when

be

raised

by

CAPITAL

STOCK

fee

business stimulant. For
instance,
Hie President proposed that the
government should insure
of

for

mortgages running 40
the

GOP

cost public

good

version

of

that

this

may be killed.




a

it

year

could
up

Carl Marks

to 40%

three-fourths vote of both

100%

Houses—would

years

death taxes.

also

'FOREIGN

eliminate
TEL:

a

section

HANOVER 2-0050

Secretary Humphrey told the

an

Co. Inc.

SPECIALISTS

\.-

NEW YORK 4. N. Y.

»

-

,

,

Report available

.TELETYPE NY 1-971

LERNER & CO.
Investment

Securities

18 Post Office Square, Boston 9, Mass.

Judiciary Committee Chairman
that such

&

SECURITIES

50 BROAD STREET

-

"low

housing." There is

cha«"e

by

year

\

amendment could

I

a

Telephone
HUbbnrd 2.1090

Teletype
BS 69

ESTABLISHED 1839

In 2 Sections

—

Section ^"
■

Commercial
Reg. U. 8. Pat. Office

Volume 179

Number 5324

New York

7, N. Y., Thursday, May 13, 1954

Price 40

Cents

H.

OF NEW
18th ANNUAL

YORK, INC.

J

V

AT WALDORF-ASTORIA

DINNER

:

MAY 7, 1954
President

First

Second

V ice-President

Vice -President

Treasurer

Secretary

George Y. Hunt
McLaughlin, Reuss
&

Alfred

F.

Tisch

Edward J.

Co.

Kelly

Fitzgerald &

Carl M. Loeb,

Company,
Incorporated

Rhoades & Co.

Nathan A. Krumholz
Siegel

N

&

Co.

Henry Oetjen
McGinnis &

Company

r

DIRECTORS

<r-

Harry L. Arnold
Goldman, Sachs
& Co.




Richard M. Barnes
A. M.

Kidder

&

Co.

John P. Gahan
Schoellkopf, Hutton
& Pomeroy, Inc.

Thomas
C.

Greenberg

E. Unterberg
Towbin

Co.

Charles M. Kaiser
Grady, Berwald
&

Co.,

Inc.

I

a

Cop>

The Commercial and Financial Chronicle... Thursday, May 13, 1954

2

Carl M. Loeb,
Members Hew Yor\ Stoc\
42 WALL

Rhoades & Co

Exchange and other leading Exchanges
NEW YORK 5, N. Y.

STREET

J.

Sinclair Armstrong, Securities & Exchange Commission; Nathaniel L.
Goldstein, New York State Attorney General; Clarence H. Adams,
Securities & Exchange Commission; George V. Hunt, McLaughlin,
Reuss & Co., President of STANY; Francis J. Purcell,
Securities & Exchange Commission

Ken

Howard,

J. A.

Hogle &

Co.;

Corporation; Robert A. Torpie,

D. Nielsen, New York Hanseatic
T or pie & Saltzman; Peter L. Barth,

Soren

Walston &

Wertheim &

Co.

Members ZNjeu) York

Stock Exchange

NEW

5

YORK

Co.

John W.
Charles

Bunn, St ifel, Nicolaus & Company, Incorporated, St. Louis;
Bodie, Stein Bros. <£ Boyce, Baltimore, Md.; Reg Knapp,
& Co.; Barney Nieman, Carl Marks & Co., Inc.

Wertheim

LISTED

&

UNLISTED

ATLANTA

ii

'

!

!

BUFFALO

j

SECURITIES

PERSHING & CO.

BOSTON

]
-

■

t

i

.
_

CHICAGO

j

DETROIT

>

'

*

New York Stock

HARTFORD

•

Exchange

:

I

Chicago Board of Trade

PROVIDENCE

TOLEDO

Teletype NY 1-750




Telephone WOrth 4-4300

'

'120 BROADWAY, NEW YORK 5, N. Y.

TORONTO

WHEELING

YOUNGSTOWN

1

.

•

American Stock Exchange

PITTSBURGH
.

0

Members

Volume 179

Number 5324 ...The Commercial and Financial Chronicle

3

Myles Perrin, Salomon Bros. & Hutzler; Don Robitaille, Burns Bros. &
Denton, Inc.; Andrew
Raymond, Nesbitt, Thomson & Company, Inc.; Harold
Stanley,
Royal Securities Corporation, Toronto
-

John

~

George Elder, Straus, Blosser & McDowell, Detroit, Mich.; Les
Swan, Chas. IV. Scranton
New Haven,
Conn.; Desmond McCarthy, Union Securities Corporation;
Bill Kumm, Coggeshall & Hicks

&

Carroll

Co.,

Clarke

Maher, Stamrowe Trading Company, Inc.; George Lawson, Manufacturers Trust Co.;
Hungerford, Robert C.
Buell and Company; Hartford, Conn.; Harold Burke,
Auchincloss, Parker & Redpath; John Kugel, Kugel, Stone & Co., Inc.

Williams, Laird, Bissell & Meeds; Wilfred Conary, G. H. Walker & Co., Providence, R. I.;
Simonds, G. H. Walker & Co., Providence, R. I.; John McCue, May & Gannon, Inc., Boston

SEATTLE
m spokane
portland

minneapolis

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springfield
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detroit
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new

eureka

Sacramento

york

chicago
pittsburgh

<#oakland

indianapolis

:.san francisco
'sp san

\'

jose

fresno

louisville

fpasadena

^

Blyth & Co., Inc.

los angeles

private
/sn
:

san

diego

Blyth & Co.. Inc.
Underwriters and
I

'

:.'•

••

:■

v-

1Distrib
of Securities
V

,

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NATIONWIDE

■

^

^




Don

.

■' '

„

'

:

.■

wire

system

^

The Commercial and Financial Chronicle...

4

Thursday, May 13, 1954

<r

-

■■

•

W

A

-

& tc

7*

-

v}~- /

ffS"
t

■'

f[

'

cAllen

&

■

Iff

V-'»

•

Co

Established 1922
John

Latshaw,

E.

F. Hutton

&

Company,

Kansas

City,

Mo.;

Clifton B.
& Co.;

Smith, Francis I. du Pont & Co.; Ed Kelly, Carl M. Loeb, Rboades
Harold B. Smith, Pershing & Co.

NEW YORK

Trading Markets Maintained in
Patterson, First Boston Corporation; Cy Murphy, John C. Legg
Company; Bob Carter, Auburn, N. Y.; Bill Boggs, John R. Boland

Austin

Corporate and Municipal Bonds

Co., Inc.;

Lud Strader, Strader,

&
&

Taylor & Co., Inc., Lynchburg, Va.

Investment Preferred Stocks

Equipment Trust Certificates

Union Securities
65

BOSTON

HARTFORD

Corporation

Broadway, New York 6
CLEVELAND

BUFFALO

•

•

PHILADELPHIA

SYRACUSE

Larry Wrenn, Allen
Murray Barysh,

& Company; Charles Robinson, Blyth & Co. Inc.;
Ernst & Co.; Addie Donnelly, Reynolds & Co.

7
PRIVATE

Troster, Singer & Co.

Over the Counter

Members New York

CLEVELAND




DETROIT
LOS

74

TRINITY

Telephone HAnover 2-2400

Teletype NY 1-376; 377; 378

ANGELES

PITTSBURGH

PLACE

PHILADELPHIA

NEW YORK 6, N. Y.

j

TO

CHICAGO

Security Dealers Association

National Association of Securities Dealers

Securities

WIRES

ST.

V

LOUIS

Volume 179

Number 5324... The Commercial and Financial Chronicle

COAST-TO-COAST WIRE SYSTEM
connecting

Joseph McManus & Co.
MEMBERS
New York Stock Exchange

—

American Stock Exchange

Midwest Stock Exchange

39

Broadway

New York 6, N.

with the
Henry Kuipers, Lord, Abbett & Co.; Lex Jolley,
Robinson-Humphrey
Company, Inc., Atlanta, Ga.; John J. Meyers, Jr., Gordon Graves &
Co.;
'William D. O'Connor, Geyer & Co.
Incorporated

following correspondents:

Albuquerque-

Quinn & Company

Midland, Tex.

—

Atlanta

J. W.Tindall &

New Orleans

—T. J. Feibleman & Co.

Company

McMaster Hutchinson & Co.

Odessa, Tex.

—

Cleveland

Wm. J. Mericka &

Phoenix

—Kenneth Ellis & Co.

Dallas

Southwestern Securities Co.

Pittsburgh

—

Blair F. Claybaugh & Co.

Denver

B. E.

Portland

—

Zilka, Smither & Co., Inc.

Detroit

R. C. O'Donnell & Co.

St. Louis

El Paso

Harold S. Stewart & Co.

Salt Lake

Harrisburg

Blair F.

Houston

Crockett &

Los

Angeles

-

-

Co., Inc.

Simpson & Company

Claybaugh & Co.

San

L.

Curry, Stone & Webster Securities Corporation; Paul Rowen,
Exchange
J.
Commission; John
Mann,
American
Stock
Exchange; Walter G. Mason, Scott, Horner & Mason, Inc., Lynchburg, Va.;
John M. Hudson, Thayer, Baker &
Co., Philadelphia

Burke & MacDonald

Seattle

Toronto

.

.

Dempsey-Tegeler & Co.

—

Lentz, Newton & Co.

—

Francisco—Wulff, Hansen & Co.

Dempsey-Tegeler & Co.

At Tour Service

Southwestern Securities Co.

City —A. P. Kibbe & Co.

San Antonio

Company

Tucson --Henry Dahlberg &

Thomas

Southwestern Securities Co.

Chicago

Kansas City

Securities

Y.

Blanchett, Hinton & Jones, Inc.

—

Matthews & Co.

—

Company

.

&

Singer, Bean

&

Mackie,

inc.

1

i

40

Exchange Place

New York 5

HAnover 2-0270

NY

1-1825

FIRM TRADING MARKETS

BANKS...

BROKERS...

&

1-1826

FOR

INSTITUTIONS

Direct Wires

!i, Philadelphia

{ Reynolds & Co.
Alonzo

H.

Lee,

Sterne,

Agee

Commercial




&
&

Leach,

Birmingham,

Financial

Ala.;

Hal

Chicago
Arthur

M.

Krensky & Co., Inc.

Murphy,

Chronicle

HILL, THOMPSON & CO., Inc.
Underwriters and Distributors

Buyers of Blocks of Stock

The Commercial and Financial Chronicle... Thursday, May

6

13, 1954

B.
MAGUIRE & CO., INC.

J.

31 Milk

Street, Boston 9, Massachusetts
MARKETS

PRIMARY

New England Securities

Utility and Industrial Stocks
Private

Direct

Phone

A. M. Kidder & Co.,

v

to

New York

for

i

New York

Bank

Insurance Stocks

&

Open-end Telephone Wire to New York
New

Bell

York—CAnal 6-1613

Boston—HUbbard 2-5500

System Teletype—BS-142

Portland,

Providence, R. I.—-Enterprise 2904

Maine—Enterprise

Hartford,

2904

Conn.—-Enterprise

6800

Harrington, H. D. Knox & Company, Boston; Eddie Opper, J. B.
Maguire & Co., Inc., Boston; Robert Samuelson, Geo. C. Lane & Co., Inc.,
New Haven, Conn.
Frank

time
have

insurance—A few large

never

Most successful firms

tising

programs.

The

adopt consistent adver¬

and

younger

cessful the firm, the more

it

seems to

The conclusion is clear: you

advertise
But all

to

companies

advertised. A few, but not many.

more suc¬

advertise.

don't have to

be successful.

things being equal, good advertising

will bring success

faster. We call it "Time

Insurance"—and that's what we've been sell¬

ing

our

clients for

over

80

years.

Joseph Kirk, Delafield & Delafield;
>

Laurence

M.

Marks

Charles
&

M. Zingraf,

Co.

AF-GL
Albert Frank-Gu^nther
•

•

•

'

.

Advertising
BOSTON

-

.

Law, Inc.
;4' x

•

Public-Financial Relations

•

131 Cedar Street,
PHILADELPHIA

/

•

New York 6, N. Y.

WASHINGTON

•

CHICAGO

•

SAN FRANCISCO

For financial institutions
Jim

Cleaver, Goodbody & Co.; Lewis D. McDowell, Chas. A. Day &
Inc., Boston; Tom Larkin, Goodbody & Co.

SECURITIES
FIRM

TRADING

Carl Marks

MARKETS

&

Co. Inc.

FOREIGN SECURITIES SPECIALISTS
50 BROAD STREET
TELEPHONE HAKOVER 2-0050




•

NEW YORK

4, N. Y.
TELETYPE NY 1-971

Bob

McCook, Hecker & Co., Philadelphia;
J. A. Hogle & Co.

Lawrence P. Sheehan,

Co.,

Volume 179

Number 5324... The Commercial and Financial

.

^

- -

Chronicle

v..

^

25th ANNIVERSARY

-\
SERVICING

BROKERS AND DEALERS
SINCE 1929

MAY & GANNON
INCORPORATED

161
Edmund

DEVONSHIRE

ST.

W.

Fitzgerald, H. Hentz & Co.; George J. Varley, Bank of the Manhattan Co.; Arthur J.
Neumark, H. Hentz & Co.; Gordon B. Duval, Guaranty Trust Company; E. T. McClure, H. Hentz & Co.

BOSTON

10, MASS.

"

Boston

i

Telephones
New York

CAnal 6-2610

HUbbard 2-8360
ATT

Teletype BS 568

Primary

,

CONNECTICUT

MARKETS for Dealers everywhere
We

Insurance

-

particularly invite
inquiries in:

your

Industrial-Utility

AMERICAN

HARDWARE

ASSOCIATED

Bank

CONN.

LT.

SPRING

&

POWER

CONNECTICUT POWER

State &

Municipal

EMHART

MFG.

HARTFORD
LANDERS

Securities

CO.

ELECT. LIGHT

F.

&

C.

NEW BRITAIN MACHINE
RUSSELL MFG.
SOUTH'N

CO.

NEW ENG. TEL.

VEEDER-ROOT
Bill

Swinnerton, National Association of Securities Dealers, Inc., New York; John Jennings, Reynolds
& Co., Philadelphia; Morton Weiss, Singer, Bean & Machie, Inc.; Jules Bean,
Singer, Bean &
Machie, Inc.; Frank Gorman, H. G. Kuch and Company, Philadelphia

COBURN & MlDDLEBROOK
INCORPORATED

100

Trumbull

Hartford Tel. JAckson 7-3261
Bell

New York

Teletype HF 464
New Haven

Worcester

Street at Pearl
N. Y. Tel. DIgby 4-6713*
Boston Tel. HUbbard 2-3780*

Boston

Providence

i

;

0

^Norwich

Manchester,
Conn.
♦Direct

Springfield, Mass.

Hartford-New

Arthur Schwartz, Bache & Co.; Ed Ruskin, Singer, Bean & Mackie, Inc.; Moe Hoffenberg,
& Co.; Andrew Brunasky, H. Hentz & Co.; M. K. S. Altman, H. Hentz & Co.

York-Boston

Portland, Me.

/*

W. Wardsboro, Vt.

'Phones

H. Hentz

PRIVATE WIRES TO

Hendricks & Eastwood,

Inc.

G. A. Saxton

Co., Inc.

&

Philadelphia

Teletype NY 1-609 & I-610
McAndrew

&

Co.,

Inc.

70 Pine
San

Francisco

St., New York 5, N.Y.
I

-

'

,

New England Securities
31

WHitehall 4-4970
"

"

Your Doorway to trading markets in

.

■

MILKj: STREET, BOSTON 9, MASS.

.

Telephone HAncock 6-8200

i

Members

Trading Markets in Public Utility, Natural Gas and Industrial Securities




New

York and

Springfield

•

Boston Stock

Fitchburg

•

Exchanges

Worcester

The Commercial and Financial Chronicle

8

Robert

Bligh, Fahnestock & Co., Torrington, Conn.; John J. O'Kane, Jr., John J. O'Kane, Jr., & Co.;
Mooney, American Stock Exchange; Jim Campbell, H. C. Wainwright & Co.

Arthur

O.

Thursday, May 13, 1954

...

Conn.; Howard Bushinger, H.
Utica, N. Y.; John R. Boland, John R. Boland & Co., Inc.;
Catlow, McDowell, Dimond j & Company, Providence, R. I.

Samuelson, Geo. C. Lane & Co., New Haven,

Mike

Co.,

L. Bushinger

Allen

Mel

Wien, M. S. Wien & Co., Jersey City, N'. J.; Dick Shipman, L. D. Sherman & Co.; Morris Seiler,
Bache & Co.; Jim Siepser,
Shaskan & Co.

Martin

King,

Sutro Bros. & Co.; Forrest Parrott, Petroleum Finance Corporation, Oklahoma
Okla.; Ed Jacobs, L. D. Sherman & Co.; Milton Capper, Capper & Co.

City,

Investment Bonds and Stocks

McLeod,Young,Weir & Compamy
LIMITED

Members of The Investment Dealers' Association of

Canada

DEALERS IN ALL

CANADIAN SECURITIES

Direct

private wires to Montreal, Ottawa, Winnipeg, Calgary,

Vancouver

and The

First Boston Corporation,

Stock orders executed

Head

50

Securities of the United States Government
and its Instrumentalities

all Fjxchanges

on

Office

King Street West, Toronto,

MONTREAL

OTTAWA

VANCOUVER

CALGARY

-

New York

WINNIPEG

Canada

LONDON

HAMILTON

QUEBEC

NEW YORK

KITCHENER k

//; /' State, Municipal and Revenue Securities

;

\ Bonds, Preferred and Common Stocks of Industrial,

jv,;

Public Utility and Railroad Corporations

;.

^T^:Bank
£

*
.

-ft,

*

-

'/

■

#*""

Government

and Insurance Company Stocks
'

'

-•

J/.,'

t--

' .~yri'' "Zl.'

'

:

•

.

HV

•#'

•

*»+•

Bankers'

of Canada

:•

....

Provincial

Acceptances

—

Municipal

—

Corporate

Bonds and Debentures
/

Securities of the International Bank for

External and Internal Issues
Reconstruction and

Development
BOUGHT

Canadian Bonds-

■"

J\

"■

>•

*

"'*** • r'V "{j ;"'J* \

if,''.

.,

3 4

New York

•' '

-

»

,

Underwriter

■4

.




,

4

'

»»

-

>

SOLD

—

QUOTED

Stock Orders Executed
.

.

at

•ubirtsiD Dealer

•

Boston

Philadelphia

—

Foreign Dollar Bonds

•

'

Pittsburgh

Cleveland

Chicago

on any Canadian Exchange
Regular Commission Rates

Burns Bros. &

San Francisco

Denton, Inc.

37 Wall Street, New York 5
Tel.:

DIgby 4-3870

TWX: NY 1-1467

***.

Volume 179

■

Number 5324... The Commercial and Financial Chronicle

W ood,

Gundy & Co., Inc.

14 Wall

Street, New York 5

Adams Street,

105 West

Chicago 3

affiliated with

Wood, Gundy & Company
Limited

Established 1905
and

L-.'
"!S-*! '
'
'
Lann, Joseph Lann Securities, Inc.; John F. McLaughlip, McLaughlin, Reuss &
Merrill Lynch, Pierce, Fenner & Beane;'67 W. Pizzipi,- B.\ W. Pizzini &
Stanley Roggenburg, R'ogg'enhurg & Co.
,V- V-

Joe

.

.

■

•

Wood, Gundy & Company

V V-: 'JA:,.

■

Co.; John Maher,
Co.,

Members of

Inc.;
The Toronto Stock

Exchange

Montreal Stock-Exchange

——

Canadian Stock Exchange
TORONTO

HAMILTON

OTTAWA

REGINA

EDMONTON
i

.

...

.

•

\

..

•

Y

KITCHENER

LONDON, ONT.
"• i

•.

..(VICTORIA

ENG.

LONDON,

CALGARY

'

HALIFAX

VANCOUVER

WINNIPEG

MONTREAL

QUEBEC

/

:

'

•

• •

-

••

•

S. WIEN & CO
EXCHANGE

1

PLACE

JERSEY CITY 2,

N. J.
Teletype JCY 783

Telephone HEnderson 4-9400

Rudolph

Guaranty

Planthaber,

Vincent

J.

O'Reilly,' Guaranty

Open End Phone to New York

Trust Company; Hans E.'Ben, New York Hanseatic Corporation;
Trust Company; Maurice--Hart, New York Hanseatic Corporation

BArclay 7-0045

.

Dealers and Brokers in

Railroad, Public Utility & Industrial
Bonds & Stocks
Trading

Over-the-Counter

Dept.

D. Howard Brown
Frank

J

MacKain

...........

Ingalls & Snyder
Members New York Stock Exchange

Members

100

COrtlandt

''
j.

■

I

■

■
.

•

f-

'%>**'

j

^

^ '

~

'

of

•.

*/

y.

'■

-

.

/:•

r""

*:
-

'

.

.

.

v.

«

■

„

.

.

.

7-6800

Stock Exchange

American

BROADWAY

NEW YORK 5,

»

—

Bell

System

N. Y.

1-1459

'

.

*4 '

Canadian

CANADIAN SECURITIES

,•»
•

■' h "-llv/w
f ••

Govt, of Canada Internals
>

NY

Teletype

Canadian Oil, Mining

Public Utility &

Industrial

•

■

Stocks

Bonds

Government, Municipal,

Orders executed

on

Utility, Corporate

Canadian Exchanges

or

External

and

Internal

at net

New York

prices

Stocks & Bonds
Inquiries Invited

Goodbody & Co.
ESTABLISHED

A. E. Ames & Co.

1891

Incorporated

MEMBERS
New York Stock

Exchange and

Other Principal

Exchanges

115 BROADWAY

1 NORTH LA SALLE ST.

New York 6, N. Y.

Chicago 3, 111.

Tel.: BA 7-0100

Tel.: CE 6-8900

Direct Wire to Greenshields & Co Inc,

and Milner, Ross & Co.,




"

New York

Montreal

Toronto

Boston

"

•

Affiliates in:
Toronto

Montreal

Winnipeg

Calgary

Vancouver

and other Canadian Cities
London, England

Victoria

»

The Commercial and Financial Chronicle...

10

Thursday, May 13, 1954

OVER-THE-COUNTER
SECURITIES

FRANK C. MOORE & CO.
42 Broadway, New York 4, N. Y.
Telephone

WHITEHALL

Teletype. NY

3-9784-5-6

1-2028

Tony Hutchison, A. E. Ames & Co., Inc.; Mowat Scott, Dominion Securities Corporation; Fremont
Robson, F. B. Ashplant & Co.;. Walter Saunders, Dominion Securities Corporation;
John Clancy, A. E. Ames & Co., Inc.

RAILROAD
PUBLIC

UTILITY

INDUSTRIAL

BOND and STOCK

BROKERS
•

—

Vilas & Hickey
i

49

York Stock

Members

New

Members

American

Stock

Exchange
Exchange

New York 5, N. Y.

Wall Street

Telephone: HAnover 2-7900
Teletype:

NY

1-911

Elmer Myers, George B. Wallace <£ Co.; Walter Bradley, B. W. Pizzini & Co., Inc.;
National Quotation Bureau; Irving A. Greene, Greene and Company

Lou Walker,

Mclaughlin, reuss & co
MEMBERS

NEW

YORK

AMERICAN

STOCK

STOCK

COMMODITY

EXCHANGE

EXCHANGE

(ASSOC.)

EXCHANGE, INC.

BOND BROKERAGE SERVICE

Specializing in Public & Stockholders Relations

ONE

WALL

STREET

Telephone

NEW

YORK

5

HAnover 2-1355

Teletype—NY 1-2155

David

Magid, Hill, Thompson & Co., Inc.; Bob Strauss, Daniel F. Rice and Company,
Ben Kerrigone, Thomson & McKinnon; Pete Brochu, Allen & Company

Chicago;

jJlllllllllllllllllllllllIllllllllllllllilllllllllllllllllllllllllllllRllllllltlKlllllilKIIIIIILj

Utah

Uranium issues

Over-the-Counter & Listed
Lisbon

Joseph J. Lann Securities,
Member of National Association

At Your SERVICE:

inc.

IS

of Securities Dealers

37

WALL

=

STREET, NEW YORK 5, N. Y.

*

Joseph J. Lann, President

iin

§

Uranium

Federal

Uranium

Sun

Uranium

U. S. Uranium

Incorporated

Mayflower Uranium

Current Information

*

■]j

,

Douglas C. Alexander, Trading Dept.

Aladdin

on

All Issues

Western Markets

=

Telephone WHitehall 3-6344

Exchange

Uranium

Direct Wires to

13

Salt Lake

Atomic Uranium

Uranium

THREE

on

^

SALT LAKE OFFICE

J

x>

132 Main Street

,

Teletype SU 468

NEW YORK OFFICE
50

Broadway

WHitehall

3-6700

Members:

>

New York Stock
Salt Lake Stock
and Other

Exchange
Exchange

J. A. HOGLE & CO.
%J

i

i'

/

Established 1915

Principal Exchanges

?

OFFICES

nimiiiiiiiiimmmiiimmiiiiimiiiimmmmimiiimmmmiiimiimimimiR




New York

Los Angeles

Reno

Riverside

Pocatello

San

Beverly Hills

Boulder

Diego

Spokane

Salt Lake City
Ogden
Idaho Falls

Denver

Provo

Butte

Long Beach

Missoula

Number 5324

...

The Commercial and Financial

Chronicle

STOCK 6- BOND
'■'

.;

.'"r'

•'

-■■

■

.

BROKERAGE SERVICE

for Banks, Brokers and Dealers

Hardy & Co.
W.

H.

'

A.

Basserman, Bank of Montreal;~Ed Peet, Burns Bros.

& D.enton, Inc.; George

Webster,

Members New York Stock Exchange

Bank of Nova Scotia; Joe Cabbie, Burns Bros. <£ Denton, Inc.

,

"■

V

",T>i 'J;l'r

Members American

,

Stock

Teletype NY 1-733

Telephone DIfby 4-7800

Harold

Exchange

New York 4

30 Broad St

Jarvis, A. E. Ames & Co., Inc.; Floyd Clearihue, A. E. Ames A Co., Inc.; E. H. Gunn, Midland
Mickey McBride, Midland Securities Corpn., Ltd., Toronto

Securities Corpn., Ltd., Toronto;

Members New York Stock

Gerald

Aronson, Bernard Aronson A Co.; Harry Tenser, Newborg A
Kugel, Stone A Co., Inc.; Paul Buckley, Stern, Lauer &

/r//

Exchange

Co.; Herb Gesell,
Co.

W$m.'0M-M%

Underwriters and
Distributors




.

Stat%:j||ii«}clpdl

A.C.ALLYN*™COMPANY

Corporate Securities

Incorporated

A.C. ALLYN & CO.
Members
New York Stock

Exchange

American Stock

Chicago

of

"<

Midwest Stock Exchange
Exchange (Associate)

New York

Boston

The Commercial and Financial Chronicle

12

Vic

Reid,

Eisele

King,

&

Libaire,
Joe

Desmond
Magee, Dominion
Incorporated; Vincent Shea,

Stout & Co.; Willie Schmidt,
Craigmyle, Pinney & Co.

Ed

Meeds;

Laird, Bissell &

Thursday, May 13, 1954

...

Mulqueen, Mills, Spence & Co., Inc.; Ace Hudkins, Bank of Montreal; Ted Pollard,
&
Denton, Inc.; Bill McLean, Northern Trust Company

Guiton,

Robert

Securities Corporation; George MacDonald,
McLeod, Young, Weir,
Glore, Forgan & Co.; Ransom Berneburg, Wood, Gundy & Co., Inc.

Anderson,

Kugel,

Stone & Co., Inc.; Ed Monte,
Friedman, Newborg & Co.

Newborg

&

Burns

Co.;

William

Bank & Insurance Stocks

Specialists in

Over-the-Counter
Securities

BANK and INSURANCE

Inquiries invited in all Unlisted Issues
1

STOCKS

Trading Department, LOUIS A. GIBBS, Manager

Laird, Bissell & Meeds
MEMBERS:

NEW

STOCK

EXCHANGE

STOCK

EXCHANGE

YORK

AMERICAN

BROADWAY, NEW YORK 5, N. Y.

120

DIRECT WIRE

1387

Main

SCHIRMER, ATHERTON & CO.
49 Pearl St., Hartford, Conn.

MITCHUM, TULLY
650 South

WILMINGTON,

& COMPANY
LINCOLN

commonest

LIBERTY

j

Teletype: NY 1-3430
Telephone

BALTIMORE —BOSTON —HARTFORD:

,

Enterprise 7846

cancer...but

should always mean a
your

Direct

"seven

danger signals

that may mean

BUILDING

PHILADELPHIA, PA.

NEW HAVEN, CONN.

DEL.

1.. is the sixth of the

Spring St., Los Angeles, Calif.

44 WHITNEY AVE.

BROADWAY, NEW YORK 4, N. Y.

Telephone: DIgby 4-2420

123 S. Broad St., Philadelphia, Pa.

Springfield, Mass.

DU PONT BUILDING

50

WOODCOCK, HESS & CO., INC.

BROTHERS

St.,

i

CONNECTIONS TO

SCHIRMER, ATHERTON & CO.
50 Congress St., Boston, Mass.
TIFFT

EDWIN L. TATRO COMPANY

Bell Teletype NY 1-1248-49

Telephone BArclay 7-3500

visit to

doctor.

The other six danger

signals

n Any sore that does
heal HI A lump or thick¬

are-

not

PRIMARY

MARKETS

ening, in the breast

or

else¬

where

HI Unusual bleeding or
discharge o Any change in a
wart or mole
Hi Persistent

BANK STOCKS

indigestion

INSURANCE STOCKS
to

swallowing

Primary Markets in
v

(above) H Any

For other facts about
that may some

New York

day

save your

Society office nearest

you,

write to "Cancer"-in

care

cer

Investors

or

of your

GEYER & CO.

,

Bank Stocks

local Post Office.

American Cancer Society

INCORPORATED
•••'

Kugel, Stone & Co.
•

63 WALL STREET, NEW YORK 5, N. Y.
Private

,

BOSTON
LOS ANGELES

wires

PHILADELPHIA

FRANCISCO

....

Providence, Enterprise 7008




a

'

r

'

\

Incorporated
.

.

.

-

•.

t

"New York 5, N. Y.

Telephone: WHitehall 3-2050
Portland, Enterprise 7008

Dayton, Enterprise 6066

a

/

ST. LOUIS

TELEPHONES TO:

Hartford, Enterprise 6011

.

;

20 Broad Street

CLEVELAND
SAN

"•

•«

V.f

to:

CHICAGO

City

cancer

life, phone the American Can¬

and

r;

*%<%■'..

difficulty in

change in normal bowel habits.

Securities Dealers

Institutional

or

Detroit, Enterprise 6066

Teletype: N. Y. 1-1822

•

Bros.

Number 5324.. .The Commercial and

Volume 179

Financial Chronicle

RAILROAD

INDUSTRIAL, PUBLIC UTILITY,
and MUNICIPAL

SECURITIES

UNLISTED TRADING

DEPARTMENT

Laurence M. Marks & Co.
Members New York Stock Exchange
Robert

MacCulloch,

E.

J.

Co.; Bill Edwards, F. S. Moseley & Co.; Les
Sal Rappa, F. S. Moseley & Co.; "Duke" Hunter,
Wellington Hunter Associates, Jersey City, N. J.
Shean

&

Barbier, G. A.

American Stock

Saxton & Co., Inc.;

Exchange (Associate)

Street, New York 5, New York

49 Wall

Teletype N.Y. 1-344

Telephone HAnover 2-9500

*

UNDERWRITERS, BROKERS and

DEALERS

distributing

Securities

Corporate and Municipal
Harry

Casper,
Monroe

O'Kane, Jr. & Co.; Edward R. O'Kane, John J. O'Kane, Jr. &
Lepow, Lepow Company; John P. O'Rourke, J. P. O'Rourke & Co., Chicago
John

J.

Co.;
since 1886

W. E. HUTTON & CO.
Exchange

Members New York Stock

and other leading
,

CINCINNATI

NEW YORK

Hartford, Conn.

Eilert, Harriman Ripley & Co., Incorporated; T.
Inc.; Jim Shea,
Wood, Gundy & Co., Inc.;

Over

a

Dayton, 0.

Easton, Pa.

Lexington, Ky.

Portland, Me.

Columbus, 0.

Burlington, Vt.

Lewiston,

Mje.

George Mulligan, Neshitt, Thomson & Company,
Denys Morphy, Mills, Spence & Co., Inc.

and Economical Service

Half Century of Efficient

Adams

AS TRANSFER AGENT

,

We

afford

N. Y. AND JERSEY CITY, N. J.

economies

other

and

Peck

&

Members New York Stock Exchange
and American Stock

NEW YORK,

Boston

Baltimore

Philadelphia

Joe

exchanges

Exchange

DEALERS IN

advantages to

RAILROAD SECURITIES

underwriters, distributors, corporations
Guaranteed

and their stockholders.

Leased Line

Preferred

Bonds

Common

and
Write

and

for

State

our

free booklet setting forth the Current

Stock

Original

Issue

and

Federal

Transfer Tax Rates.

REGISTRAR AND TRANSFER COMPANY
50 CHURCH STREET

New York 7,

N. Y.

BEekman 3-2170




Established

15 EXCHANGE PLACE

1899

Jersey City 2, N. J.
HEnderson 4-8525

Unlisted Investment Stocks
New York 5r N. Y.

120 Broadway

Telephone REctor 2-4949

Teletype NY 1-724
Private wires to

Hartford and Philadelphia

The Commercial and Financial Chronicle

Wc
that
at

the

now

started

our

address with the

same

Thursday, May 13, 1954

pleased to announce

are.

have

we

...

and ihe

33rd

same

year

firm

name

business

same

SPECIALISTS IN UNLISTED SECURITIES

JOHN J. O'KflNE JR. & CO.
ESTABLISHED

,

Members

York

New

Security

1922
Association

Dealeris

42 Broadway, N. Y.

DIgby 4-6320

Irwin Guttag, Kaufmann,

Alsberg <fc Co.; Richard Goodman, Shields & Company; Sid Jacobs,
Sidney Jacobs Co.; Arthur Bertsch, G. A. Sax ton & Co., Inc.

I

Pflugfelder & Rust
Members

of the New

York Stock

Exchange

I
61

BROADWAY,

NEW

YORK

6r

N.

Y.

Telephone BOwling Green 9-4900

Walter Johnson, G. A. Saxton & Co., Inc.; Charles O'Brien Murphy 3rd, D. F. Bernheimer &
Co., Inc.;
J. C. Blockley, Harris, Upham & Co.

Founded 1851

UNDERWRITERS

DISTRIBUTORS

'

l

■

DEALERS

•

.

Industrial, Public Utility and Railroad Securities
State and

Municipal Bonds

ESTABROOK

&

CO.

MEMBERS

NEW

YORK AND BOSTON

Associate

40

Member

Wall St., NEW YORK 5

HARTFORD

•

STOCK EXCHANGES

American

Stock

Exchange

IS State St., BOSTON 9, MASS.

-

POUGHKEEPSIE

PROVIDENCE

•

•

Ray B. Garcia, J. M. Dain & Company, Minneapolis; Harry R.
Walker, White, Weld & Co., Boston;
Robert M. Topol, Greene and
Company; Les Gannon, Peter Morgan & Co.

SPRINGFIELD

Underwriters

Rights

Scrip

-

-

Warrants

REORGANIZATION

Advertising

is

one

Originators

of

*

Distributors

the most useful tools in

SECURITIES

securing

So

it's

/our

new

smart

customers.

to

place

INVESTMENT SECURITIES

advertisement in

Mc Donnell & Ho.
MEMBERS
New

York

American

120

Stock

Stock

Exchange
Exchange

BROADWAY, NEW YORK 5
Tel.

REctor

BRANCH OFFICES:
Buhl

Building, Detroit, Mich.
254 Park




THE COMMERCIAL AND

HUNTER SECURITIES CORPORATION

2-7800

1 Press Plaza, Asbury Park, N. J.

Avenue, New York

FINANCIAL

CHRONICLE

i

•

52
25

Park

Broadway

New

York 4

Place, New York 7

DIgby 4-2785

Teletype NY 1-1371

Volume 179

Number 5324

.,.

The Commercial and Financial Chronicle

15

You Save
•.

•

.'.v..

-i V. ••'

•

'

v.

r"

'

,1

,

V-

'

THE N. Y. STATE TAX

When You Trade With

WELLINGTON HUNTER ASSOCIATES
15

EXCHANGE PLACE. JERSEY CITY

Direct N.

Y. Private Wire

Jersey City Phone

AI

—

—

2. N. J.

Dial WOrth 2-4578

HEnderson 5-6005

Tisch, Fitzgerald £ Company, Inc.; Tony Lund, Securities & Exchange Commission; Nat Krumholz,
Siegel & Co.; Irving L. Feltman, Mitchell & Company

Mitchell & Company
Members

Philadelphia-Baltimore Stock Exchange

120 BROADWAY

NEW YORK 5, N. Y.
Bell Teletype N

Tel. WOrth 4-3113

Y. 11227

INACTIVES

Jim

Durnin, H. D. Knox & Co., Inc.; Roy Larson, H. D. Knox & Co., Inc.;
Oliver Kimberly, Starkweather & Co.

ORIGINATORS

-

UNDERWRITERS

—

DISTRIBUTORS

OF

NEW JERSEY MUNICIPAL
AND

AUTHORITY REVENUE OBLIGATIONS

Boland, Saffin

&

Co.

Established 1920
20

PINE

ST.

TELEPHONE

NEW YORK 5, N. Y.

WHITEHALL 3-3414

Bell System

Arthur

Vare,

Hourwich

&

Co.;

Louis

Orchin, Kalb,

Voorhis

&

Teletype—NY 1-535

Co.

Underwriters, Distributors and Dealers in

Corporate and Municipal Securities

GARTMAN, ROSE 8c CO
MEMBERS

NEW

YORK

STOCK

EXCHANGE

Net Markets to
MEMBERS

AMERICAN

STOCK

EXCHANGE

(ASSOCIATE)

Institutions and Dealers in

Corporate Stocks and Bonds and Foreign Issues

CROSS

HIRSCH
Members New York Stock

NEW YORK 5,

ONE WALL STREET

N. Y.

must carry on I

25 BROAD

&

CO.

Exchange and Other Exchanges

STREET, NEW YORK 4, N. Y.

Teletype: N.Y. 1-210

Telephone: HAnover 2-0600
TELEPHONE

WHITEHALL

TELETYPE—NY




3-8200

1-2122

1636

I

Eye St., N.W., Washington 6

LONDON,

ENGLAND

Direct

—

Keyser Building, Baltimore 2

Tel: Lexington 7861

Tel: NAtional 8-2545

Representatives' Offices: GENEVA

Wire Service

—

New

•

AMSTERDAM

York, Washington and Baltimore

C;

16

.u

The Commercial and Financial Chronicle... Thursday,

May 13, 1954

f,
U. S. Governments
**

v

*

f

>

Municipals

^

#

Industrials

i till

Public Utilities

'*

"

i Ml

t

Railroads

Ecjuipment Trusts

Preferred Stocks

Canadians

Bank

Acceptances

James

Salomon Bros.

Hutzler

&

Members New York Stock

Gavin, Walston & Co.; Arnold J. Wechsler, Ogden, Wechsler & Co.

Exchange

Sixty Wall Street, New York 5, N. Y.
Cleveland

Boston

San Francisco

Chicago

Established

1856

H.HENTZ&CO.
Members New York Stock

Carl

txchange and other

Stolle,

G. A.

Saxton & Co.; Inc.;

Roscoe

In galls,

Ingalls

&

Snyder

leading stock and commodity exchanges
60 BEAVER STREET, New

York 4, N. Y.

BOwling Green 9-8420
781

N. Y. (Sherry-Netherland Hotel)

FIFTH AVE.,

PLaza 1-2220
CHICAGO

PITTSBURGH

DETROIT

BEVERLY HILLS. CAL.

GENEVA, SWITZERLAND

Underwriters
of

CORAL GABLES

MIAMI BEACH

and

HOLLYWOOD, FLA.

AMSTERDAM, HOLLAND

Distributors

Corporate Securities

I

/

%%

\

equipments;

I

D

We
in

the

all

at

are

listed
our

fr

\

times

RAILS

MUNICIPALS

interested

John

%.i

Stein,

Wm.

V. Frankel & Co., Incorporated; E. H. Church,
Virginia Beach, Virginia Beach, Va.
Y

Bank of

purchase of blocks of
unlisted securities for

or

account

own

or

for

redis¬

tribution.

! NEW

•

ISSUES

|

Underwriters
and

&. ;•

I
%
V/s

11

1

UTILITIES
«t

'•

*>,

«yA

•

'
'

BANK

leased

insurance

iS|WK|

llnts:

stocks

Wholesale Distributors
I

Jfrxx-X-Xv
wX*X

of

XvXvi'&X'

Investment Securitie

STROUD & COMPANY
|

•

••

.

Incorporated

-

-

J**

John R. Boland & Co., Inc.
".-•V'-f

123 SOUTH BROAD STREET

Members National Association of Securities Dealers, Inc.

PHILADELPHIA 9
30 BROAD
,

*

STREET

BOwling Green 9-3249
NEW YORK

NEW YORK 4, N. Y.

x •

/

•




PITTSBURGH

•

ALLENTOWN

•

LANCASTER

•

I

ATLANTIC CITY

Teletype NY 1-4487